Friday, November 21, 2008
Now it is US land prices falling, farmers in trouble
David Kanable at the Oregon Farm Center, a mill near Madison, Wis., was paying $7.25 a bushel for corn in June. “We never had a farmer lock in at that price. They wanted $8,” Mr. Kanable said. Now this Thursday, the mill was paying $3.17 a bushel. When commodity prices were feverish, the price of good farmland exploded, too. Cropland values rose about 20 percent in the Midwest farm belt last year, capping a multiyear rise. The market for land is definitely weakening. One reason is that the investors and part-time farmers are once again dropping away. " Farmers are trying to survive by cutting costs, planting less, using less fertilizer, owning cattle instead etc. Plan for food shortages ahead I recon, unless the dollar drops and US farmers can be profitable again.