The recent announcement that Farmland Partners Inc. (FPI) just closed on a purchase of 22,100 acres in central Illinois in a deal valued at $197 million ($8,914/acre average) may explain complaints from farmers that cash rents are not coming down as fast as commodity prices. Buy High Stocks and bonds leave investors disappointed, but Gregory Meyer’s reporting in the Financial Times that many are now switching their money to farmland looks premature. China’s continuing farmland acquisitiveness may make sense given that it is both rich and paranoid about hunger. However, the latest announcement involves Farmland Partners Inc. (FPI), which just closed on a purchase of 22,100 acres in central Illinois in a deal valued at $197 million ($8,914/...
What You Need to Know Today: After a period of limited activity, USDA reported a sizeable 613 KMT in soybean export sales, including 330 KMT to China and 283 KMT to unknown destinations, potentially also China. The purchases represent a meaningful pickup in demand and bring China closer to ful...
Inflation is back in the driver’s seat, and agriculture is getting pulled in two directions. A stronger dollar is pressuring grains despite fresh Chinese buying, while renewed Middle East attacks lift crude oil. Higher energy prices can support commodities, but they also raise expenses an...
From WPI Consulting
Forecasting developments in production agriculture
On behalf of a private U.S. agricultural technology provider, WPI’s team generated an econometric model to forecast the movement of concentrated corn production north and west from the traditional U.S. Corn Belt. WPI’s model has subsequently provided quantitative support to a multi-million-dollar investment into short-season corn variety development. WPI’s methodology included a series of interviews with regional grain elevators and seed consultants. Emphasizing outreach and communication with stakeholders who possess intimate sectoral knowledge – on-the-ground insights – is a regular component of WPI’s methodologies, made possible by WPI’s ever-growing network of industry contacts.