Arab Today, arab today us farm land prices surge despite drought
Last Updated : GMT 19:09:22
Arab Today, arab today
Arab Today, arab today

US farm land prices surge despite drought

Arab Today, arab today

Arab Today, arab today US farm land prices surge despite drought

Audubon - AFP

American farmers may have suffered an historic drought last year, but the price of their land is skyrocketing. In Iowa, the US\'s biggest producer of corn, the land prices jumped 24 percent in 2012 and and have gained 63 percent over the last three years, according to a study by Iowa State University. The drought and heat wave last year may have severely damaged crops, but ironically it has made crop land ever more valuable. The higher prices for crops helped compensate for lower yields, for one thing. Farmers also recovered some $14.7 billion in insurance payments for crop damage, a record sum. It left farm incomes on average just three percent lower from 2011, and so lingering near their highest level in 30 years. US government forecasters expect overall farming income to gain 14 percent this year. And that makes the land across this Midwest corn and soybean belt even more sought-after. \"Farmers have cash on hand and with low interest rates, the best place to make investments is to buy more land that they can farm to be more profitable in their operation,\" said Lyle Hansen, a real estate agent at Audubon, a city in western Iowa.At an Audubon church hall on a frigid day in early March, Hansen prepared to auction a 127 acre (51.4 hectare) farm suitable for corn and soybeans, the major crops of the area. The owners were a family who wanted to sell the land following the death of their mother in the autumn. The auctioneer, clad in a cowboy hat with shiny studs on top, spoke at a rapid-fire cadence as he took bids from three people among a small roomful of attendees. The land ended up selling for $8,800 per acre, or $1.12 million. That was a high price, though still well below the record $21,900 per acre reached in October. \"If you are sitting on some cash, there is no better place to put it in than in agricultural land,\" said Marvin Jorgensen, one of the attendees, who did not bid this time. Jorgensen bought his first land in 1949 with $5,000 lent by his father. Now 85, he owns almost 17,000 acres around the state, which he values at around $120 million. He never sold a single acre, even during the farm crisis of the 1980s, when a big drop in land values forced some indebted farmers out of the business.For him, today\'s prices are not irrational. \"Farmers learned from the past,\" Jorgensen said. \"A lot of the land doesn\'t have a lot of debt on it. So if the land market goes down, it is not going to force them into selling.\" \"Is this a speculative bubble that will burst like the dot.com (boom), where it will drop dramatically overnight? I don\'t think it will,\" said Mike Duffy, professor of economics at Iowa State University. \"It will be more like a tire that you put a nail in and it gradually goes down,\"he said. Then the market should become more stable, at still-high prices. \"Over the long run, Iowa farmland looks better than the S&P 500,\" he said, referring to the US stock market benchmark index.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today us farm land prices surge despite drought Arab Today, arab today us farm land prices surge despite drought

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today us farm land prices surge despite drought Arab Today, arab today us farm land prices surge despite drought

 



Arab Today, arab today
Arab Today, arab today Youssra depended on colored foam

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today EasyJet, Lufthansa among seven to bid

GMT 06:49 2017 Tuesday ,17 October

EasyJet, Lufthansa among seven to bid
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today Fighters celebrate Raqa victory

GMT 06:07 2017 Wednesday ,18 October

Fighters celebrate Raqa victory
Arab Today, arab today Hiring not part of Alibaba pledge

GMT 11:26 2017 Wednesday ,18 October

Hiring not part of Alibaba pledge
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Sidem reveals plan to improve education

GMT 15:52 2017 Friday ,06 October

Sidem reveals plan to improve education
Arab Today, arab today British actress becomes fifth woman

GMT 18:15 2017 Monday ,16 October

British actress becomes fifth woman
Arab Today, arab today Climate-disrupting volcanoes helped topple

GMT 16:00 2017 Wednesday ,18 October

Climate-disrupting volcanoes helped topple
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Mercedes says recalls 400,000 UK cars

GMT 06:56 2017 Tuesday ,17 October

Mercedes says recalls 400,000 UK cars
Arab Today, arab today Britain's Vauxhall to cut 400 jobs

GMT 10:53 2017 Sunday ,15 October

Britain's Vauxhall to cut 400 jobs
Arab Today, arab today Dalal Abdel Aziz happy for “Seventh Neighbor”

GMT 09:31 2017 Monday ,16 October

Dalal Abdel Aziz happy for “Seventh Neighbor”
Arab Today, arab today Three killed, 360,000 without power

GMT 05:11 2017 Tuesday ,17 October

Three killed, 360,000 without power

GMT 12:33 2017 Friday ,13 October

Anoshka happy for reactions to her talk show

GMT 10:37 2017 Thursday ,12 October

Cara Delevingne accuses Weinstein

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha

GMT 18:49 2017 Monday ,16 October

India to close colonial-era military farms

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 23:42 2017 Monday ,16 October

Better Marriages Make

GMT 07:02 2017 Sunday ,15 October

German minister sparks uproar

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 03:59 2017 Sunday ,15 October

US mobile carriers Sprint, T-Mobile to merge

GMT 11:37 2017 Saturday ,12 August

Fashion designer reveals her new collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday