World Perspectives

Future Farmland Values Tied to Inflation and Taxes

USDA’s National Ag Statistics Service (NASS) released the 2021 average farm real estate values. The average per acre value of land and buildings on farms across the U.S. was $3,380, up from $3,160 in 2019 and 2020. That is a record value and a 7 percent jump from last year, the biggest percentage increase since 2014. Excluding buildings and assets, crop land values increased 8 percent to $4,420. This is the second highest percentage increase since 2013, when crop land values rose 14 percent. This increase in crop land reflects all the factors that get capitalized into land values: higher crop prices, lower interest rates, and bigger government payments.   Crop Prices, using corn (the largest acreage crop) as a proxy. T...

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livestock

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feed-grains soy-oilseeds wheat

Summary of Futures

Mar 26 Corn closed at $4.365/bushel, down $0.0325 from yesterday's close.  Mar 26 Wheat closed at $5.095/bushel, down $0.1125 from yesterday's close.  Jan 26 Soybeans closed at $10.6275/bushel, down $0.09 from yesterday's close.  Jan 26 Soymeal closed at $302.4/short ton, down $1...

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From WPI Consulting

Infrastructure investment due diligence

On behalf of a Canadian oilseed processer WPI's team provided market analysis, econometric modeling and financial due diligence in support of a $24 million-dollar investment in a Ukrainian crush plant. Consistent with WPI's findings, local production to supply the plant and the facility's output have expanded exponentially since the investment. WPI has conducted parallel work on behalf of U.S., South American and European clients, both private and public, in the agri-food space.

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