Meaning adding up for me. The Corn Belt has been dodging drought bullets for the last few years and many got hit last year. Some are worried (not near enough) for obvious reasons -
"We are still concerned about getting the leftovers out of the way from the drought of 2012. At this time we would not anticipate a national corn yield above the trend," said Iowa State University climatologist Elwynn Taylor, who has studied crop production for decades. "Rather, we would expect a fourth consecutive year of below-trend crop, not as far below as in 2012 but still not up to par."
The Farm Bill - most of it anyway was extended till Sept and many don't like it in including the recipients themselves.
But just about everyone hates it. That includes farmers, produce trade organizations, groups that address hunger, dairy farmers, fiscal hawks and environmentalists – all have concerns with the way the bill was shoved awkwardly into the overall fiscal cliff compromise.
Then there is the dynamics of once again the dramatic increase in farm land value. The link below comes from my part of the cornfield and I can tell you for a certainty the average paid of $8,296 for an acre of Iowa farmland is way low. Well above 10K with sales in the middle to high teens and some smaller parcels going over 20K.
Average Iowa farmland value is estimated to be $8,296 per acre, an increase of 23.7 percent from 2011, according to results of the Iowa Land Value Survey conducted in November. This is the third year in a row where values have increased more than 15 percent. The 2012 values are historical peaks.
This is no bullshit and what's interesting as well is that it is not unusual to pay with cash. I'll do the math. There are 640 acres to a section which is a square mile. Land is generally sold in parcels the smallest being an 80 as known. A quarter is 160 acres. 80 acres is not a small area but not much with the bigger operators who farm a section or two or maybe more. So - you get a chance to pick up an 80.
80x15,000 = $1,200,000 Whose got that kind of money just laying around and that's just for 80 acres. Back in '09 or so we thought the jump then from $3,500 or so to 6K plus was very interesting. Now this.
Go to this link below and enter the zip code and see for yourself how much they dislike the farm bill. And I can tell you it's the ones at the top of the list who are paying cash. Farm Subsidy Data Base
I do not see how this can be sustained without crashing eventually combined with the drought aspect and Climate Change as a whole. Seen it several times. Greed is at work here.