This is the second year of what could be a multi-year correction in farmland prices due to lower commodity prices, increasing interest rates and slower investor interest.This is the second year of what could be a multi-year correction in farmland prices due to lower commodity prices, increasing interest rates and slower investor interest. The most bullish factor for farmland is the relatively tight supply. For the past several years of the commodity boom, the turnover nationally averaged about 3-4 percent. It is currently down to about 1 percent. End-of-year corn prices will dictate how much further land prices may slip or if they will firm. Ten years ago, with the advent of the original version of the Renewable Fuel Standard (RFS) via the...
What You Need to Know Today: Russia rejected calls for a ceasefire in the Black Sea, including a proposal to halt attacks on civilian shipping that could help restore grain flows from Ukrainian ports. Tyson Foods announced plans to permanently close its Joslin, Illinois, beef processing facili...
What You Need to Know Today: Wholesale inflation was flat in July, with the Producer Price Index (PPI) unchanged versus expectations for a 0.2 percent increase. Core PPI rose 0.2 percent, also below expectations. The softer inflation data has reduced the odds of a September interest rate incre...
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.