Futures Market News
Farmland prices soar
Feb 18, 2011 03:11 PM
Greene County, Iowa saw 120 acres sell last month for nearly $1 million, which breaks down as $8,200 per acre. That sale price is 44 percent higher than the $5,701 estimate one acre averages in the U.S.
"It's reflective of what we're seeing," Iowa State economist Mike Duffy said of auction results. "There's just not a lot of ground offered for sale."
The Federal Reserve Bank of Kansas City announced on Thursday that farmland values in central U.S. states had a fourth quarter during which they gained the most in more than two years. That is welcome news in a region that has lost scores of manufacturing jobs, which in turn forces homes and property values to plunge.
"In the next year to two years, I don't see a lot right now to indicate that it's going to take a nosedive," Duffy said. "What people have to remember is farmland is primarily bought by farmers and they buy it for the long term."
Don’t Miss Our News Updates!
Follow our breaking news stories and get a unique take on current events that may impact the commodity futures markets. Multiple new articles are posted each weekday. Subscribe to our commodity news updates by email, and receive real-time updates with our RSS feed, follow us on Twitter @DanielsTrading, become a fan on Facebook to stay informed.
SPECIAL OFFER: Futures Traders’ Guide to the WASDE
Improve Your Understanding of the Grain Markets!
With this guide, you will learn how to use these fundamental reports to forecast the price of Corn, Soybeans and Wheat. Now that the markets are open during the release of the WASDE, understanding how this very important USDA report can impact the markets is as critical as ever.
Register for Your Free 2-Week Trial of the dt Insider Market Advisory!
With your free trial membership, you'll receive full access to our exclusive trade recommendation service and all of the timely and accurate trade information you need to feel comfortable participating in the markets.