Japan faced this situation immediately after the collapse of Lehman Brothers in 2008.3 Under such a situation, CME attempts to create an accommodative monetary environment by exerting downward pressure on longer-term interest rates, which remain in positive territory despite the policy rate reaching nearly zero.
According to USDA data, Nebraska’s capitalization rate on cropland was 5.1 percent at the beginning of 2010, well below its historical average of 7.5 percent (Chart 2). Despite regional variation, capitalization rates on farmland values have fallen to record lows across the nation, with rates below 5 percent in most states (Map 2).