What’s HOT & What’s NOT
The corn market might have gone to pot but the HOT land market in NW Iowa remains intact.
Yesterday, 120 acres in Sioux County sold at auction for almost $30,000 each. Yeow!
$29,600 an acre is questionable at $6 corn much less a market that is barely treading water above $4 - so what gives?
Critters… and their manure.
Not only are the area’s soil’s highly productive for row crops, but it is home to some of the highest concentrations of cattle and hogs in the country (plus they have plenty of poultry & a handful of ethanol plants, too).
This means there is plenty of demand for bushels plus more manure than you can shake a stick at.
Naturally, input costs are reduced as producers utilize manure vs synthetic fertilizers, plus land rights are important as you must have the ground to spread it on.
Plus, it isn’t a bad time to be in the cattle business:
Back to the auction - @theLandTalker‘s post mentioned there was a Summit Pipeline easement on both tracts:
The Summit Carbon pipeline is a HOT topic of its own.
Trust me… I brought it up during a presentation I was giving in Central Illinois yesterday.
If you are ever looking for a way to bring a room out of a post-lunch coma at an outlook meeting - just mention pipeline!
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Corn export inspections for the week ending February 22 were hot at 48.9 million bushels - the highest weekly shipments since May of last year.
Corn inspections will become increasingly important with each passing week as the US program ramps up seasonally.
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