Farmland values and prices remain strong

Published: Oct. 21, 2020 at 7:09 AM CDT
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ALTOONA, Wis. (WEAU) - During this year of ups and downs caused by the Coronavirus pandemic, one area of agriculture has stayed relatively stable-farmland values and prices. And according to a recent Farm Journal poll it likely will stay that way into 2012. Over 800 people responded to that poll and 28% said they expect farmland values to be higher next year, 60% expect prices to remain steady while 12% said they expect lower land prices next year. Those that said prices would be higher next year pointed to 4 reasons why-a very limited inventory of farms for sale, commodity prices have rallied at harvest, government support for farmers keeps coming and interest rates have stayed favorable.

The numbers are still being added up concerning how much damage that Derecho weather event caused this past August when it hit Iowa and other parts of the Midwest. But the latest figure, as of this week, is 7 and a half billion dollars. Besides Iowa, that storm caused damage to parts of Illinois, Ohio, Minnesota and Indiana. Iowa agricultural officials say it now looks like at least 850,000 acres of crops won’t be harvested there this fall because of that storm. But even with the big loss of crop acres, Iowa is still expected to harvest the biggest corn crop in the country this year with 2.4 billion bushels. Illinois will be a close second with 2.2 billion bushels. For soybeans, Iowa is expected to have the second biggest crop this year behind only Illinois.

In the first 6 weeks of our current marketing year, China has been the biggest buyer of U.S. corn. During that time the Chinese have bought almost 10 and a half million tons of corn from us-more than twice the amount of our next best customer-Mexico, which is usually our biggest buyer. China needs corn as they try to rebuild their hog herd which was devastated by African Swine Fever for about the last year or two.

The Cooperatives Working Together Program of the National Milk Producers' Federation continues to export U.S. dairy products. In September that program helped U.S. dairy cooperatives export 1.7 million pounds of cheese, a million pounds of butter, 750 thousand pounds of whole milk powder and 875 thousand pounds of cream cheese to buyers in 11 countries. So far this year the CWT program has helped export over 78 million pounds of dairy products.

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