As demand tanked, corn and soybean yields surged in 2013. The result, according to the Chicago Fed, was the second smallest gain in farmland values over the last decade. â€“ The Editors
NATIONAL â€“ TREND
In 2013, King Corn stumbled. The countryâ€™s most valuable crop was also the worst performing commodity on the S&P GSCI Index. Corn futures dropped 40 percent last year, the steepest single-year dip since the 1960s.
According to the USDA, the rebound in agricultural production for the United States in 2013 led to the largest corn crop and the third-largest soybean crop on record.
MIDWEST â€“ FOCUS
According to the Chicago Fed, in 2013, â€œ… the Seventh Federal Reserve District had an annual increase of 5 percent in â€˜goodâ€™ farmland values, yet growth in farmland values appeared to be slowing.â€
â€œOverall, the Districtâ€™s crop production bounced back strongly from the 2012 drought, but drought returned to the Midwest in 2013, hitting Iowa the hardest …â€
For a copy of the Seventh Federal Reserve Districtâ€™s AgLetter, go to www.ChicagoFed.org.