With heavy turnover among Congress and Congressional staffers, the ASGA is getting ready to educate people on how the farm bill and U.S. sugar policy works.
Missed some market news this week? Here s what Jacquie Holland, Ben Potter and our Ag Market IQ bloggers have been following.
Ag Marketing IQ
There was a lot of market surprise on lower U.S. acreage intentions. Will we see these numbers increase? Are they down due to higher input expenses or is it possible the USDA was too high on this same report in March 2020? I am sure any growers reading this are saying, “of course they were.” The acreage question is a big one, but there are plenty of other fundamentals in the grain picture in addition to non-ag world events that can impact price. One year ago, the “experts” were telling you how poor price prospects were in the grain and oilseeds markets. To sum up most of these comments: prices were never going up again. Today? Many farmers believe prices are never going down. Who can blame them? These same “experts” are talking about how tight our carryouts look and it’s hard not to believe more upside is
Five years ago, according to Informa Economics FNP, the Brazilian nationwide average farmland price without buildings or other improvements was pegged at $2,530 per acre, and just $627 some 15 years ago. But recent record market prices usually find farmers craving more land to farm, and Brazilians are no different. And that demand is having an impact on land values.
It is becoming increasingly difficult to find land for rent, and when they do, it comes with a hefty price tag. In Mato Grosso you shouldn’t expect to rent productive ground for less than 15 sacks/ha ($160 per acre), with some farms reportedly renting for up to 20 sacks per ha ($213 per acre). This is on land that should produce 60-plus bu. per acre soybeans.