If you were wise enough to invest in farmland, like Marc Faber, you’ve made a very good decision as prices look likely to continue to rise, according to the U.S. Department of Agriculture.
The result is that farmers will now be increasing farmland to grow crops like wheat, soy beans, and corn.
Already, wheat acreage is rising, with winter planting coming in higher than expected. The demand for soy beans has yet to be caught up with, and with projections for next years harvest down 15%. Corn supplies left unsold are at their lowest levels in 4 years.
The breakdown on prices, from the U.S. Department of Agriculture report, with current futures charts:
Wheat: “The marketing-year average price received by producers is projected at $5.50 to $5.80 per bushel, up from $5.30 to $5.70 per bushel last month.”
Corn: “The 2010/11 marketing-year average farm price projection is raised 10 cents on both ends of the range to $4.90 to $5.70 per bushel as cash and futures prices are expected to strengthen.”
Soy Beans: “The 2010/11 U.S. season-average soybean price range is projected at $11.20 to $12.20, up 50 cents on the lower end of the range.”