Discussion at OSU Farm Policy and Outlook meeting

  • There are very high corn yields In Ohio, and resulting lower prices. Fayette county farmer related dilemma of not enough on farm storage to hold production but does offset lower $4.26 current price compared to earlier priced at $6.00 plus per bushel.
  • Lower profit expectation in some instances below break even partly because of higher interest rates. Also, squeeze on working capital.
  • Farm balance sheet continues to look strong mostly from historically high land values.
  • Expectations of larger demand from China in commodities with potentially higher prices would improve profitability.
  • Despite projected lower farmer profits, some down to break even, land buyer’s interest remains strong. November 16, auction of 176 acres of Madison county, Ohio land sold for $18,645 per acre. No contributory value from house and buildings, no development pressure, not even the highest rated productivity soils. Competitive bidding right to the last bid. Interest in owning land as of November 15, has not declined in Madison county Ohio, and most of central Ohio.