There are few markets that have changed as much (or as quickly) as the farmland market of the past 2 years. During this time, all the factors came together to create a “Goldilocks” market – strong crop yields, historically high commodity prices, generationally low interest rates, and more demand than supply of farms to buy.
For thousands of years, fire has been a natural and effective method for improving wildlife habitats. Today, we still use fire to meet some of our land management goals, but instead of letting a fire happen from a lightning strike, we use different strategies and tools to start and control fires so we can purposefully burn a certain area or patch of land. This practice is referred to as a controlled burn.
Farmers and landowners across the Midwest sell their crops for market values determined by factors mostly out of their control. Grain marketing continues to be full of uncertainty as international conflicts, global logistics, energy and fertilizer supply, and weather concerns actively affect the markets. We are in a unique year with both historically high grain and fertilizer prices.
“Even if the conflict is solved tomorrow, there will still be long-term effects,” noted Cortney Cowley, senior economist at the Kansas City Federal Reserve Bank. The World Bank estimates crop fertilizer prices to rise about 70% in 2022 before falling slightly in 2023 [from atmospheric levels].