Iowa Land Auction Prices, May 15-21, 2020
Posted on May 26, 2020 at 1:33 PM by Jim Rothermich
Once again, there were no auctions to report this week.
Corn is king in Iowa, and corn prices are highly correlated with land prices. I get asked quite frequently, “What are land prices going to do?” I cannot predict the future, but I do know corn prices need to be high enough for profitability. If corn is profitable, land prices will be steady to stronger. If there is no profitability or even negative margins raising corn, there is potential for land prices to soften.
As can be seen in the table below, export demand was higher in 2019 than 2018. Export demand has supported corn prices. If export demand continues to grow, that growth would be supportive to both corn prices and land prices.
Did you know Mexico was the biggest importer of U.S. corn? China is not even in the top 10.
“That’s my story and I’m sticking to it!”
Jim “the Land Talker”
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