American farmland values skyrocket

Nov 18, 2021

American farmland real estate values jump by 18 percent over numbers from 2020 Q3 in a five-state region.

In the Seventh Federal Reserve District that includes all of Iowa and much of Wisconsin, Michigan, Illinois and Indiana, the Chicago Fed—aka the Federal Reserve Bank of Chicago that serves the District—it is believed that the large increase in values is related to the higher crop prices achieved this year.

The 18 percent increase is the largest such jump in nearly 10 years, noted the Chicago Fed, and added that the valuation increase was aided by high incomes and low interest rates, and corn and soybean futures hitting multiyear peaks thanks to bad weather affecting yield.

On the downside, the high value of farmland adds to inflation concerns as raw material prices rise along with transportation rates—all bad news for consumers.

Photo by Tim Mossholder on Unsplash

Video: U.S. Crop Ratings Fall + Drama with China but Still Buying U.S. Soybeans & Corn?

U.S. crop ratings in corn and soybeans fell more than expected, especially in ND/SD, after a hot/dry trend. But rains this weekend and cooler temps is causing the funds to sell at month-end, and take profits.
The Ukraine/Russian war has escalated as Ukraine tries to keep moving grain out of the Black Sea while 3 ports in Russia are offline as Russia looks to weaponize cargo ships!
China was not happy with the new higher U.S. tariffs on forced labor; headline news that China was selling weapons to Iran and the U.S. banning humanoid robots for cyber security concerns.
Talk of U.S. farm bill and E15 passing by next Thursday.
Headline news that Hamas will disarm but Israel needs to approve.
The U.S. weekend billion $ rains could disappoint after a dry July?
A surprise reopening of the Mexican border to cattle is more noise.
KOSPI down 44% in 40 days.