1. Grain Rally Fertilizes Farm Prices.
- Author
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Wolf, Gary
- Subjects
- *
GRAIN , *PRICE increases , *VALUATION of farms , *SUBPRIME mortgages , *MARKET volatility , *CORN industry , *PROFITABILITY - Abstract
The article reports on the role of the surge in grain prices in the increase in farmland values in Midwestern States. The cited factors that influenced the rise in farmland values are huge losses by companies involved in the subprime mortgage market and the resultant credit crunch. The improved returns across the corn-production areas in the state are attributed by agricultural economist Bruce Johnson to demand by the ethanol industry. It expects any decline in cash prices for wheat and soybeans to negatively impact the profit potential of the land.
- Published
- 2008