OMAHA (DTN) -- In the Chinese zodiac, 2011 was the Year of the Rabbit.

But, glancing through the list of the Top Ten Ag Stories of 2011 as picked by the DTN newsroom, perhaps we should deem it the Year of the Money.

Money was made. Corn futures hit a record high in 2011, $7.99 3/4. Soybeans and wheat didn't reach new records, but were at levels nobody could really sneeze at: soybeans hit $14.56 in 2011 (compared to $16.63 in 2008); Chicago wheat futures hit $8.93 in 2011 (compared to $13.34 in 2008).

Cattle and hogs hit record selling prices. In early November the record live price of $125 was set on fed steers and heifers. In early August, we logged a record live price on hogs of $82. In mid-December 800 pound feeder steers hit a record price of $145.

Land values exploded. More than once this year a new per acre record price was set -- usually in Iowa. In early December there was a sale in northwest Iowa reported at $20,000 an acre. That, of course, was not a "normal" or "typical" rate. But still, according to Iowa State University's latest land value survey, when adjusted for inflation, Iowa's 2011 average of $6,708 per farmland acre tops the previous peak from 1979.

In 2011 China became the No. 1 ag export customer for the United States. Despite issues with how they manage their currency and other philosophical differences, China bought U.S. ag products in record amounts.

Money was lost. On crops that weren't able to be planted or harvested; fields devastated by flood, drought, hail and high winds.

Money was spent. On seed sold to fight rootworm infestations that may not be living up to that billing. Some farmers spent big money meeting EPA standards for dust and other environmental issues, while others worried that the EPA sights might turn their way next.

Money was misappropriated. Customer account funds moved about and then disappeared. Farmers who have been told for years to use hedging tools offered on commodity exchanges were burned when MF Global declared bankruptcy and millions of dollars from customers' accounts were missing. Even the guy who ran the company at the time couldn't say where the money went.

Money was in flux. Changing a farm bill from being a guaranteed cash payout to being a risk aversion program that pays only when disaster, either weather or market price related, strikes. Money moving, perhaps, from one type of seed to another as evidence mounted that rootworm resistance is increasing.

Money became a "Big Picture" item. Every headline surrounding European debt woes, the U.S. struggling economy roiled not only financial markets but ag markets as well. That's because noncommercials played an ever-increasing role in ag markets. Their money isn't tied to physical commodities, i.e. they aren't hedging. They are looking for the best place to turn some money into more money. As outside markets grew shakier, ag markets offered, if not a safe haven, at least a non-losing one.

Money may not be everything, but it does seem to make the world go round... or make the economy come to a grinding halt. In the end, perhaps this bit of wisdom will make us all feel a little bit better about how the money moves: "The art is not in making money, but in keeping it." -- old proverb.

With that, we'll start our countdown of the Top Ten Ag Stories of 2011. Today look for numbers 8, 9 and 10 on the DTN Ag News menu.

Cheri Zagurski can be contacted at cheri.zagurski@telventdtn.com

(AG)

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