Farm rental rates rising
Iowa farmers are paying higher rental rates. According to the latest report from the Iowa State university Extension, most farmers in the state are seeing a significant increase in land rents so far in 2021.
Rent is up 4.5% which averages to be around $10 dollars an acre. That pushes the total per acre rental price in Iowa to $232 per acre.
ISU extension says this is the first major increase in cash rents since 2013 – when rents peaked. That was followed by four years of declining rents and three years of stable prices. The extension report is based on a survey of more than 1,300 Iowans.
World Pork Expo returns
The world pork expo is back in Iowa next week. After two years of canceled shows the expo is set to return to the Iowa State Fairgrounds starting Wednesday for the 33rd annual event. The National Pork Producers Council presents the expo and says it is excited to be back for the first time since 2018 after African Swine Fever and then COVID-19 canceled the shows.
There will be more than seven hundred vendor booth with companies from around the world featuring 19 education sessions to talk about climate neutrality, ecosystems and new production systems.
A look at the markets
Grains look to end the week green. Analyst Alan Brugler has the week recap:
“We saw quite a bit of volatility that seems to be the order of the day you had big down days, big up days the previous week was really classic in that regard. We tried to break the market on Thursday came back on Friday. Export sales are clearly being slowed by higher prices you see that in pork and beef and the grains. But corn export shipments are good ethanol demand is good consumer driving demand for fuel is up. And of course we have weather threats here with the hotter and somewhat wetter conditions than we had the last couple of weeks so that put a bid under the market and we’ll see how far it can go. Cash cattle are trading fairly firm, very well supported, futures have not been as well supported I think a part of that is packers got interrupted and of course JBS got interrupted by the cyber attack and temporarily slowed down the cattle market. Hogs just keep marching higher and new life of contract highs begin again this week and most of the 2021 contract months. The export demand has slowed down but bottom line is we have tight pork stocks we have decent exports and we’re not really expanding hog production much because corn prices are so high. So it’s a good combination to keep hog prices in the upper end of their historical range.”