Bloomberg is reporting that estimates for the production of the corn crop in Iowa have been reduced downwards.
This follows abnormally dry conditions that have led to a drought in many parts of Iowa, coupled with extremely hot and humid temperatures throughout the state.
Whilst conditions aren’t as severe as in other parts of the United States such as Texas and Oklahoma, they are worse than anticipated.
Earlier, in August this year, the US Department of Agriculture was estimating that corn production in Iowa would be on average 177 bushels per acre.
Whilst this was down on 182 bushels in 2009, it was seen as an improvement over the low figure of 165 bushels per acre from last year, that was in large part due to water soaked crops.
Private forecasters are now reducing that estimate down even further to about 164 bushels per acre.
Full story : Bloomberg
Bloomberg is reporting that the price of corn and soybeans is rising steeply on the expectation that there will be a reduction in the overall yield of these crops, owing to dry hot weather in the US MIdWest .
The Professional Farmers Association of America recently undertook a four day study of fields in the midwest, and estimated that farmers in America will harvest just under twelve and a half billion bushels of corn this year, 2011.
This is less than was forecast by The US Department of Agriculture , by just over three percent.
According to Bloomberg, corn is the largest agricultural crop in the United States, valued at just over sixty six and a half billion dollars, followed by soybeans valued at just under thirty nine billion dollars.
Full story : Bloomberg
Bloomberg is reporting that the value of farmland in the UK is rising to record levels as farmers increase production to take advantage of rising livestock and wheat prices.
This follows a report by The Royal Institution of Chartered Surveyors that says land prices have effectively doubled in the last five years, and that generally farmers are taking the view that they would rather keep land and increase production, rather tham simply sell land.
This means the value of the land will rise significantly as production increases and so therefore does the value of the land.
According to the UK Office for National Statistics, wheat prices in the UK have grown eleven percent in the last year and whilst meat prices have gone up by just over seven percent in the last year.
According to the RICS, arable land has gone up by just under five percent and pastures by just over four percent since the end of last year.
According to another report by Knight Frank, farmland in the UK has gone up in value over three times in the last decade, which outperforms all other types of real estate in the UK.