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...
The U.S.-Mexico-Canada Agreement (USMCA) enters its mandated six-year review on 1 July. The original intent of the review is outlined in Article 34.7, which obligates members to: Provide recommendations and decide on appropriate actions. Extend the USMCA for another 16 years and meet aga...
Key Market Insights Geopolitical Limbo: Geopolitical risk remained a key driver across global commodity markets today. President Trump stated that the Iran memorandum of understanding is not yet final and warned that military action could resume if negotiations fail. Both sides continue w...
Key Takeaways: Drought remains a major threat to global agricultural production, particularly in regions with limited rainfall and growing water scarcity. Commercially available drought-tolerant traits in corn, soybeans, and wheat have generally delivered modest yield improvements, limiting th...
