Friday, February 15, 2008

Heartland Sees Boom With Grains in Demand

This is the second time in under two weeks that the Journal has taken a look at what's shaping up as a big redirection in money flows, the Feb. 2 story is here.
From the front page of the Wall Street Journal:

The U.S. economy may be teetering on the brink of recession. But there's a bountiful harvest down on the farm.

Grain prices are surging to historic levels. Spring wheat, a variety often used in bread, hit a record $18.53 per bushel yesterday. Corn is trading above $5 and soybeans are bringing in more than $13, all 25% or more above their year-ago prices.

Net farm income is expected to hit $92.3 billion in 2008 -- a 51% increase over the 10-year average of $61.1 billion. Across much of the Great Plains, unemployment rates are well below national figures and housing markets remain robust. Robert Moskow, a food industry analyst at Credit Suisse, has proclaimed this the "golden age" of agriculture....MORE