US Midwest farm land values up 25% on grain earnings

Farm land values in the U.S. Midwest increased 25% in the third quarter of 2011, the most since 1977, as rising net income for corn and soybean growers and improved cattle, hog and milk earnings supported higher land prices in Iowa, Illinois, Indiana, Michigan and Wisconsin, according to the Federal Reserve Bank of Chicago.
Land values rose 7% from the second quarter, and banks are predicting further rises in the fourth quarter of 2011. Farmland values in Iowa, the largest producer of corn and soybeans, rose 31% from 2010, according to the Federal Reserve Bank. Indiana values rose 29%, Illinois 23%, Wisconsin 17% and Michigan 16%.
Interest rates have fallen for operating and real-estate loans, improving credit conditions for agricultural producers, according to banks. Repayment rates rose in the third quarter compared to 2010 numbers and loan renewals and extensions declined. Loans to buy farm machinery and build grain storage are expected to rise by the end of the year compared to 2010, while the value of all livestock loans is forecast to fall, according to the Federal Reserve Bank.

Wet weather affects corn harvest

If you live in the U.S. Midwest, as I do, there is one fact that is perfectly clear - you are in farm country. Specifically, this is corn and soybean country.
Every year, come October and November its harvest time. This year it is also perfectly clear that the lousy weather we're having - as in large quantities of rain - is holding back the harvest.This should not be news to anyone, as it has been widely reported on.
Even today there was an article in the Wall Street Journal about it. The bad weather has delayed the harvest and made corn prices spike 10% this month. The real question is whether or not (no pun intended) the corn will come in OK in the end and prices will drop.
Nobody seems to be quite sure and there is much speculation, so right now you can get someone to agree with just about any theory out there. The fact is that the rate of corn harvest is far behind what it usually is at this time of the year. Read the full blog.

New edition of 'Healthy Animals' online

The U.S. Agricultural Research Service has posted a new issue of Healthy Animals online. The quarterly newsletter offers news and expert resources on the health and well-being of agricultural livestock, poultry and fish.
It also helps locate animal health experts and includes an index listing ARS research locations. The site provides contact information for the more than 25 ARS research groups.