World Perspectives

Looking Ahead at Farmland Values

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...

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From WPI Consulting

Weighing in on strategic realignment

WPI’s team was retained by the governing board of a U.S. industry organization to review a decision, reached by vote, to invest significant assets into the development and management of an export trading company. WPI’s team conducted a formal review of this decision and concluded that the current level of market saturation would limit the benefits of the investment. Based on WPI’s analysis and recommended actions, the board subsequently reversed its decision and undertook a strategic planning effort to identify more impactful investments. On behalf of numerous clients, WPI has not only assisted in identifying strategic paths but also advised their implementation.

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