Crop land values appreciated significantly during the long tail of COVID impacts. It was predictable. Commodity prices were increasing. Inflation was high, with land being a good hedge. Additionally, interest rates were low through 2021 and into Q1 of 2022.
But with all that changing – moderating inflation, relatively high interest rates, and declining commodity prices - what will farmland value look like moving forward? As of two weeks ago, the Federal Funds futures market was pricing in a more than 97 percent chance of the Fed leaving rates unchanged at its meeting on 31 January, and an expectation that rates will be cut at the 1 May meeting. Nonetheless, higher borrowing and carrying costs have impacted farmers&rsqu...
What You Need to Know Today: The hot, dry weather forecast continues to drive strength in grain futures with corn and soybeans hitting another day of strong gains. Monday’s Crop Progress and Conditions data were in line with market expectations and showed relatively few concerns for the...
Yesterday we wrote about the Q1 GDP numbers and the June employment reports in an article entitled Real GDP for Q1 Relying on AI Buildout, Held Back by Consumer Spending. That article mentioned that consumer spending had become a drag on GDP. Nonetheless, real GDP in Q1 was revised upward to 2...
Key Takeaways: The Middle East and North Africa's arid climate and limited water resources have created a structural dependence on imported wheat. Government wheat tenders in major importing countries serve as important benchmarks for global trade, providing insight into exporter competitivene...
