In the last several years the cost of farmland in Iowa has soared. Senator Harkin, in the past, has opined on the worry over whether both corn for fuel and food could be produced. Today that argument might be seen as the last rosy glow, before the financial ember was gone. Soaring costs of farmland at the record rate below can only be seen as anticipation of an ethanol enhanced future, spurred by the recent farm bill passage.
Farmland values soar as other real estate tanks
By DIEN JUDGE 9/30/08 12:36 PM
As real estate values continue to decline nationwide, Iowa farmland is becoming more valuable every day.
A survey released this month by the Iowa chapter of the Realtors Land Institute (RLI) showed a 6.6 percent increase in farmland values in just the last six months. Farmland values rose 17.6 percent in Iowa throughout the course of the last year, and an incredible 70 percent over the last five years.
http://iowaindependent.com/6235/farmland-values-soar-as-other-real-estate-tanks
The ultimate gamblers, farmers are faced with decisions about what to do. Probably nowhere else are the differences between the two presidential candidates more pronounced, than in Iowa. Only a month ago, some farmers were wrestling with this choice:
Many farmers may opt out of Conservation Reserve Program
By DIEN JUDGE 9/10/08 1:27 PM
A federal program designed to protect environmentally sensitive farmland may be losing some of its luster.
[…With CRP rental rates not keeping up with the value of farmland, landowners will consider the bottom line.
“I run into some farmers out there that ask about it. I can see that they’re thinking about it,” said Northey. “They’re trying to figure out what to do.”
Opponents of alternative fuels such as ethanol have pointed to federal renewable fuels incentives as the reason farmers may choose to opt out of CRP. The demand for corn has increased because of ethanol, but landowners will consider other factors as well…]
http://iowaindependent.com/5201/many-farmers-may-decide-to-opt-out-of-crp
Iowa had a big flood this year, last FEMA estimates were around 7 billion, and the DNR alone, reported another 12 million. Iowa has suffered:
UI appoints flood mitigation task force to address future
By T.M. LINDSEY 10/10/08 1:41 PM
Now that the flood waters have receded in Iowa City and officials have had time to assess the damages caused by the floods this summer, the University of Iowa (UI) must decide what to do next to prevent future flood damage. The UI took the first step in moving forward Wednesday by appointing a 14-member task force that will serve as the bridge between the university community and flood-mitigation consultants.
http://iowaindependent.com/6831/ui-appoints-flood-mitigation-task-force-to-address-future
In Iowa, farmers depend on banks to help finance the next season’s crops. Take a look at the list below to see how many Iowa related financial institutions are losing steam.
Iowa companies take hit as market falls
By JASON HANCOCK 10/10/08 7:54 AM
Several companies with a major presence in Iowa saw their stock prices take a hard fall Thursday as the stock market continued its downward spiral.
http://iowaindependent.com/6823/iowa-companies-take-hit-as-market-falls
Then, there is this article. After all the buildup for production and investment in land, the crop prices drop. I know one set of datum does not indicate deflation in our economy. This is still interesting:
Grain prices drop following USDA report
By DIEN JUDGE 10/10/08 10:53 AM
Corn and soybean prices dropped sharply Friday following the release of the U.S. Department of Agriculture’s October crop production estimates.
Nationwide corn production for the year is estimated to reach 12.2 billion bushels, up 1 percent from last month’s report. Corn yields are expected to average 154 bushels per acre.
If the crop estimates hold true after this year’s harvest, it would result in the second-largest corn crop in history. This huge crop is expected despite the devastating flooding throughout Iowa and the Upper Midwest earlier this year.
Corn prices, which had skyrocketed to record highs during the flooding in May and June, have now dropped to just above $4 per bushel, causing worry among farmers who had banked on high grain prices to offset their historically high operating costs.
Soybean production is also forecast to be higher than earlier projections. Nationwide soybean production is expected to reach 2.98 billion bushels, up 2 percent from a month ago and up 11 percent from last year.
http://iowaindependent.com/6845/grain-prices-drop-following-usda-report
So I’m not surprised McCain is spending a little time on the state:
John McCain focusing on Iowa despite polls
By Associated Press
Tuesday, September 30, 2008 – Added 10d 5h ago
DES MOINES, Iowa – John McCain’s second visit to Iowa in less than a month is heartening Republicans who say it is proof their presidential candidate intends to compete for the state, despite polls showing him behind Democrat Barack Obama.
Democrats counter that McCain’s event Tuesday in Des Moines shows he can’t be elected president without winning in states where he trails his rival.
Republicans acknowledge that McCain is behind, but say the race is closer than the polling indicates.
http://bostonherald.com/news/2008/view.bg?articleid=1122550&srvc=2008campaign&position=6
Grab and Keel 
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