Trade Wars – RiotJs Sun, 23 Jan 2022 02:37:19 +0000 en-US hourly 1 Do you think the value of your home is skyrocketing? Talk to a farmer. – Twin towns Sun, 23 Jan 2022 01:21:56 +0000

DES MOINES, Iowa — Jeff Frank, a fourth-generation corn and soybean farmer, doesn’t feel rich, but simply based on the skyrocketing value of his land in northwest Iowa, he’s a appropriate way to describe it, even if he scoffs at the idea.

He lives in the same nearly century-old house, grows vegetables in the family garden and shops at the same grocery store about 24 kilometers away. “We live the same way we have our whole lives,” he said.

Yet even though Frank’s life hasn’t changed, the several hundred acres he owns about 80 miles (129 kilometers) northwest of Des Moines have suddenly earned him millions of dollars.

It may surprise city dwellers excited about their home values ​​that countless farmers like Frank are actually experiencing a housing boom that makes home prices pale in comparison. While median existing home prices rose 15.8% in the United States last year, farmland values ​​rose about double in places like Iowa.

“I’m definitely surprised by the magnitude,” said Wendong Zhang, an economist at Iowa State University who oversees an annual survey of farmland values.

The rise in values, particularly in the Midwest, is due to high prices paid for major staple crops of corn and soybeans, abundant harvests in recent years coupled with low interest rates and the optimism that the good times will continue.

But they are a mixed blessing. They enrich farmers who already have a lot of land, but make it much more difficult for smallholders or young farmers who start to obtain land unless they inherit it.

Most purchases are made by operations that see the value on a larger scale, seizing the chance to buy nearby land.

“If you miss this opportunity, you may not get another chance,” Zhang said, describing the current mood.

As for consumers, higher land costs generally do not affect grocery prices.

Historically, farmland values ​​go up and down, but over the past two decades it’s mostly gone up, and in the last year it’s gone up a lot – 33% in the Frank part of the state and 29 % in all of Iowa, one of the best agricultural countries. states. Agricultural prices also climbed elsewhere in the Midwest and climbed in most other parts of the country as well.

The Federal Reserve Banks of Chicago and Kansas City recorded double-digit increases in Illinois, Wisconsin, Indiana, Missouri and Nebraska.

In Iowa, average farmland fell from $7,559 per acre in 2020 to $9,751 per acre in 2021.