Several surprising storylines emerge from the Seventh Federal Reserve District, home of bumper crops and bellwether land values. — The Editors

NATIONAL — TREND
In addition to a downturn in corn and soybean prices – corn fell 12 percent and beans were off nearly 4 percent in the most recent quarter – the EPA proposed to cut next year’s renewable fuels mandate by 3 billion gallons.
MIDWEST — FOCUS
According to the Chicago Fed, in 3Q 2013, “After leading the District in terms of year-over-year gains in farmland values from the first quarter of 2010 until earlier this year, Iowa felt the impact of renewed drought conditions and had the lowest year-over-year increase in agricultural land values among District states, as well as the only quarterly decrease.”
“Even with the reoccurrence of drought in parts of the District, the third-largest corn harvest and a soybean harvest just outside the top ten filled storage bins across the Midwest.”
Meanwhile farmland values in Michigan continued to trend north: up 5 percent in the last quarter and a stout 17 percent over the last year.
For a copy of the Seventh Federal Reserve District’s AgLetter, go to www.ChicagoFed.org.