Listen to the following podcast. Why is the price of farmland in Iowa going up? What kinds of government influence are at work in the corn business. Are people acting rationally? What is the danger? Why would some call this a bubble? What investment advice would you give.
8 Comments
Violet Elder
10/11/2011 01:07:14 pm
The price of farmland in Iowa is going up for three main reasons described in the podcast:
Reply
Alexa Frankel
10/11/2011 02:26:18 pm
The price of farmland in Iowa is rising because of several factors. We are no longer solely growing corn for human and animal food consumption, but are also now relying on the crop to produce ethanol to power our motor vehicles. Therefore, the demand for corn has been steadily rising. Some people predict this price increase is an artificial "bubble" with the anticipation of corn losing it's value over time.
Reply
Magali Garcia
10/11/2011 04:09:35 pm
In new, surprising news, the prices on farmland in Iowa are increasing. Seems quite random seeing as the United States is in the middle of an awful Recession, but nevertheless the prices are soaring. There are several reasons why this strange price change has occurred, among them is the interest rates. Interest rates have been dropping significantly, allowing people to attain loans to buy land. Another reason is corn prices. Corn prices have spiked, and seeing as our country depends on corn, people are willing to pay a higher price to grow the corn and sell it. The specifics on why corn prices are raising are that corn is used in ethanol. Ethanol is an ingredient of a type of oil. Which brings the the final reason for the raise in farmland which is a huge ethanol subsidy . The U.S government subsidizes ethanol. For every gallon of ethanol sold there is a 45 cent tax break, which sums up to about 6 billion dollars a year.
Reply
Frani Gray
10/11/2011 04:52:43 pm
Numerous factors contribute to the increase in price of farmland in Iowa. The prices of corn have been continually rising due to the fact that corn is no longer grown only to feed humans and animals, but we are noe relying on it to produce ethanol to fuel our vehicles. Interest rates have declined, and it is easier to borrow money from the bank to buy, and to sell their land. The money farmers have in the bank is gaining no interest either. The government recently subsidized corn because they subsidize the production of ethanol. The people purchasing this land are acting rationally because corn occupies one third of the farmland and the land is also subsidized by the government. A farmer claims that there is a trend in farm prices, and the "bubble" will soon pop, and prices drastically decreasing, as it has once before in the 1980's.
Reply
Roberto Rojas Martinez
10/12/2011 02:15:36 pm
The prices of farmland in Iowa is going up for several reasons. First of all, interest rates have been dropping a lot lately, this allows people to get loans and buy land. Moreover, corn prices are increasing because of the use of corn to produce ethanol. The United States government subsidizes the use of ethanol and that means more money for the farmers.
Reply
Holle Depina
10/12/2011 02:27:18 pm
The price of farmland in Iowa is increasing due to several factors which are described in the podcast. The prices of corn have been rising because we are no longer growing corn for human and animal food consumption, instead we are relying on corn to produce ethanol to fuel our motor vehicles. Interest rates have declined significantly, making it easier for farmers to borrow money to buy and sell land in Iowa. Also because of the decline in interest rates, farmers with extra money in their bank accounts are gaining no interest, but when they use that money to buy land they are gaining interest allowing for a better investment. The United States government subsidizes the use of ethanol which positively affects the farmers of corn, which was stated in the podcast, depicting that people are acting rationally in choosing to buy land. One farmer who spoke in the podcast felt strongly that this boom was a "bubble" that would soon pop and result in prices dropping dramatically, which happened in the 1980's. I would advise that we stop producing corn for fuel because it isn't an efficient long-term solution to meet our energy needs and there could be a more efficient way of producing ethanol.
Reply
Adalberto Perez
10/13/2011 03:04:28 am
What i undersgood about the was That the lady trying to sell her property was having a diffixult time selling it because of Corn prives. Sincera Corn is used alot in everything, so if the prives are down it is diffixult to sell Land because you nOt get a profit.
Reply
maria gonzalez
10/13/2011 01:55:05 pm
the price of farmland in Iowa is increasing due to many factors that are being mentioned in the podcast. but one major reason is that we are not producing corn for our self's or animals but instead in order to produce ethanol. since we are using ethanol as way to produce fuel for cars. the united states government subsidizes the use of ethanol which is affecting the farmers. i think people are not acting rationality because its a big problem to the farmers because their prices on producing goods such as corn are dropping down and the prices for ethanol are going up but there's is s high chance that there is a high risk that prices will drop dramatically this is what people are calling "bubble.".my advice is that we should fine a another way to produce ethanol and use corn for more benefit to us.
Reply
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. Archives
April 2014
Categories |