World Perspectives
feed-grains soy-oilseeds wheat

U.S. Land Prices and Farm Income Stay Very Strong

U.S. farmers appear to be headed for another very strong year financially. The table below shows that while net farm income might slip some from 2011, it is still forecast to be the second best ever.Farmland values also continue to soar with little evidence that a "top" has been formed. The table below shows the change from 2010 to 2011. The next survey results will not be out until August, but the numbers should look similar to this chart.There are a lot of reasons for the surge in net farm income, including:

Generally very good crop yields, Consistently high prices since 2006/07, A leveling off or reduction in crop input costs, Very low interest rates, and A great crop insurance program.

The question of the "bubble" in land p...

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From WPI Consulting

Communicating importance of value-added products

Facing increasing pressure to quantify the value of export promotion efforts to investors, a U.S. industry organization retained WPI to develop a quantitative model that better communicated the importance of exports. The resulting model concluded that value-added meat exports contributed $0.45 cents per bushel to the price of corn, increasing support for that sector’s financial support of WPI’s client. In addition to serving the red meat industry with this type of analysis, WPI has generated similar deliverables for the U.S. soybean and poultry/egg industries.

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