Farmland Prices Decline Across Parts of Midwest
by: Jesse Newman
Nov 13, 2015
Click here to view the full article on WSJ.com
by: Jesse Newman
Nov 13, 2015
Click here to view the full article on WSJ.com
TOPICS: Supply and Demand
SUMMARY: Farmland values fell in parts of the Midwest in the third quarter, reflecting a downdraft in the agricultural sector driven by three years of lower crop prices, according to Federal Reserve reports.
CLASSROOM APPLICATION: Students can use supply and demand to analyze the reasons for decreases in the prices of farmland in the Midwest.
QUESTIONS:
1. (Introductory) What factors have caused recent decreases in the prices of farmland in the Midwest?
2. (Advanced) What is the effect of a drought on the demand for farmland? What is the effect of a drought on the supply? Is it possible that droughts result in a decrease in the price of farmland?
3. (Advanced) What is the effect of ethanol regulations (i.e., ethanol requirements in gasoline) on the prices of farmland?
1. (Introductory) What factors have caused recent decreases in the prices of farmland in the Midwest?
2. (Advanced) What is the effect of a drought on the demand for farmland? What is the effect of a drought on the supply? Is it possible that droughts result in a decrease in the price of farmland?
3. (Advanced) What is the effect of ethanol regulations (i.e., ethanol requirements in gasoline) on the prices of farmland?
Reviewed By: James Dearden, Lehigh University
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