A Wakeup Call for the Valuation Industry: Is anybody listening?
By Richard Gilmore, ARA
On February 13, 2013 the National Association of Home Builders (NAHB) published a fascinating critique on the world of valuation. The document: “A Comprehensive Blueprint for Residential Appraisal Reform” should be read by every appraiser, every user and every client. NAHB is telling us our core systems are not working and to take another look at our process and procedures. Our systems are too inconsistent, too cumbersome, and NAHB is asking us to improve our efficiency which impacts their and our profitability. NAHB is asking the industry to provide them a uniform, consistent, quality product utilizing well trained staff. These exact same issues exist in the certified general/commercial valuation industry as well.
The concept they are presenting has significant merit in my opinion. The streamlining of regulatory frame work and improved oversight is easy to say but a challenge to achieve. The NAHB proposed data system is essential for all forms of valuation and the more data the better. The development will change everything and is needed to improve efficiency, accuracy and timeliness of delivery. Costar/Loopnet sales data have improved a lot and for me working nationally this information is of great value. I see great value in nationwide reciprocity or a national appraiser’s driver’s license with state fees. I do this now with temporary licenses in states where I am working.
The training and development of competent people is imperative for the valuation industry to meet the needs of our clients. NAHB wants one standard for education, training, and mentoring. The clients of our services want and need consistent products to be delivered efficiently effectively and profitably.
A unified group of professional appraisal organizations should be doing this now but can’t get it together. The valuation industry should not have to be told this by one our biggest customers. Remember you as a customer shop where and when you want and if you don’t get what you want you go elsewhere! Our clients and users of our services will do the same thing if we do not provide them with efficient, effective, accurate delivery of valuation services. Is anybody listening?
The appraisal industry looks like this today. (Directly from the ASC’s appraiser credentials summary as of April 7, 2013 was Certified General 37%)
Residential Combined #
So when over 60 percent of us are very dependent on residential real estate we should probably be listening carefully to one of our biggest customers.
Corn will Continue as King of U.S. Crops
From The Kiplinger Agriculture Letter
Farmers will make over $75 billion in sales of ’12’s crop, 75% more than for soybeans; 330% more than for wheat. It’s also on its way to being king of the world. Farmers abroad are planting more corn to keep up with mounting demand for food and livestock feed.
Other topics covered in this issue:
Sugar: Look for Uncle Sam to buy more than 400,000 tons of sugar this year…Then sell them at a loss
Livestock: U.S. dairy farmers can look forward to good profits through the fall.
Climate: Note this positive result in the long-term rise in the air’s carbon dioxide. It takes 370 fewer gallons of water to raise a bushel of sorghum in Kan.
More updates on Trade, Shipping, Pesticides and more. Login to member resources to download the latest edition: http://portal.asfmra.org/Scripts/4Disapi.dll/4DCGI/cms/review.html?Action=CMS_Document&DocID=27&Time=820983562&SessionID=62057594yhofx712z58m6ib178uofz4n8xa01t8fypx92ywdh85706r0j6bv566f&MenuKey=123
Ag indexes report positive sentiments about current conditions, negative outlooks about future
From Agri Council Intelligence Report, American Business Media (ABM)
April 1, 2013 — Farmers and agribusiness owners are feeling positive about their current agri situations but turn pessimistic when thinking about the future, according to the latest editions of the Agriculture Confidence Index and Agribusiness Confidence Index, produced by DTN/The Progressive Farmer. The indexes, released multiple times a year, measure sentiments about the agri sector; scores above 100 are gauged as positive, scores below 100 are negative and a score of 100 is neutral.
Read more about the ag index report: http://www.abmassociation.com/News/3024/Ag-indexes-report-positive-sentiment-about-current-conditions
Summer Ed Week Registration Opens Soon
The Summer Education Week (SEW) registration will open later this week and this year’s program is going to be top notch! On Sunday, we are looking forward to our third student program and the second year for Young Professionals Network (YPN) meeting at SEW. On the education front, we will be offering 5 brand new seminars. Managers/Consultants should plan to attend Technology, Tools, and Apps to Manage Data Overload on Monday, Excel for Managers on Tuesday and Marketing Through Mayhem, presented by DTN on Wednesday. And the Appraisers’ program is equally strong with a new Regression Analysis Uses in Appraisal seminar, Rural Case Studies 1 seminar and our Minerals Appraisal seminar which is a really hot topic with all the oil and gas development nationally.
Don’t forget SEW is packed with networking opportunities. This year there will be dinners Monday through Wednesday night including a river boat cruise and two other evenings away from the hotel . We will have reception Sunday night and networking lunches Monday and Tuesday as well. It will be a week filled with great education, exceptional networking and a good time for everyone. You don’t want to miss it.
Iowa Farmland Posts Another Increase
LandOwner: Iowa farmland values rose 9.4% during the six month period ending March 1, according to a survey conducted by the Iowa Chapter of the REALTORS® Land Institute (RLI). That six month rise combined with the 7.7% gain found the survey ending Sept. 1, 2012, results in an annual increase of 17.1%.
Other articles in this issue: Malanga: Fed Exit from Easing May be Delayed
North Dakota cropland values increased 42 percent during 2012
A recent news update from North Dakota State University stated that, “North Dakota cropland values increased by about 42 percent during 2012, according to Andrew Swenson, North Dakota State University Extension Service farm management specialist.
“His estimate is derived from the published results of a January 2013 county-level survey commissioned by the North Dakota Department of Trust Lands. The 42 percent increase is similar to the 46 percent increase reported by the North Dakota Chapter of the American Society of Farm Managers and Rural Appraisers.
“‘The question is whether this huge increase has capped a 10-year rise in land values, which has been the largest in the past 100 years, even exceeding what occurred from 1973 to 1981,’ Swenson says. ‘North Dakota cropland values are now the highest ever, even when adjusting for inflation.’”
Jeff Plagge, the chairman-elect of the American Bankers Association, indicated in a letter to the editor in The New York Times earlier this week that, “‘As Crop Prices Surge, Investment Firms and Farmers Vie for Land’ (Business Day, March 19) doesn’t address the fundamental differences between the farm crisis of the 1980s and the current farm boom. Today’s interest rates are at an all-time low compared with the extremely high rates of the ’80s.
“Land prices are high, but farmers are mostly using cash, not leveraged credit, to buy land. Only a small percentage of land is actually changing hands, part of the supply-and-demand reason land prices have climbed.”
Take the Poll and Join the discussion on LinkedIn:
Four Year College Degree Required for Appraisers Effective January 2015
Welcome New Members
Thank you for being a part of the ASFMRA! Help the ASFMRA welcome our new members. The ASFMRA appreciates every member for choosing the Society as the association you desire to affiliate with. The ASFMRA continues to make every effort to offer member services which will be of benefit to you professionally and personally.
We are recognizing new members of the Society on a monthly basis. You may recognize your fellow peers in the following list and we encourage you to welcome them into the membership of the ASFMRA.
Jarad Brett Cates with First South Farm Credit in Hattiesburg, MS (Mid-South Chapter)
Gary Evans with Louisiana Land Bank in Pineville, LA (Mid-South Chapter)
Clint Freund with Farmers National Company in Atlantic, IA (Iowa Chapter)
R. Joseph Hackett with Correia-Xavier, Inc. in Fresno, CA (California Chapter)
Chris Hammell with Bien Nacido in Santa Maria, CA (California Chapter)
Benjamin Hillis with AgChoice Farm Credit in Gettysburg, PA (Northeast Chapter)
Jeff Jorgensen with Rabo AgriFinance in Cedar Falls, IA (Iowa Chapter)
Matthew Joynt with Farmers National Company in Hastings, NE (Nebraska Chapter)
Roger Leach with US Bank in Springfield, IL (Illinois Chapter)
Ryan Martin with Correia-Xavier, Inc. in Fresno, CA (California Chapter)
Bronc McMurtry in Brookings, SD (South Dakota Chapter)
Loran Mick in Wiley, CO (Colorado Chapter)
Kathey Naegeli with USDA Farm Service Agency in Stayton, OR (Oregon Chapter)
Jess Payne with Jess Payne Appraisal Service in Caldwell, ID (Idaho-Utah Chapter)
Amy Pendley with Northwest Farm Credit Services in Salem, OR (Oregon Chapter)
Matthew Pope with QuantAg in Jonesboro, AR (Mid-South Chapter)
Richard Putnam with Consolidated Appraisal Services in Lima, OH (Ohio Chapter)
Rebecca Rutan with Northwest Farm Credit Services in Nampa, ID (Idaho-Utah)
Richard Steele with Farm Credit Services in McAlester, OK (Oklahoma Chapter)
Corey Zelhart with Busey Ag Services in Decatur, IL (Illinois Chapter)
K.C. Conway, Chief Economist with Colliers International confirmed for ASFMRA’s 84th Annual Meeting
The ASFMRA Program Committee under the leadership of S. James Rickert, AFM, ARA is pleased to announce that K.C. Conway of Colliers International has been confirmed as a speaker for this year’s Annual Meeting. K.C. Conway is the foremost economic thought leader for Colliers International, authoring white papers, articles, and the North American quarterly office, industrial and port analysis reports. In 2012, Conway made more than 70 speaking appearances for organizations across the industry. He is frequently quoted in the national media, including the Wall Street Journal, New York Times, Washington Post and Bloomberg. K.C. Conway will bring over 25 years’ experience as an appraiser, underwriter, lender, credit officer and noted economist to the meeting in Reno, NV.
Read K.C.’s latest North American Port Report now and make plans to be in Reno November 11-15 for his latest updates. http://www.colliers.com/us/port-1h2013
Save the Date – November 14th Education Foundation Auction
You do not want to miss this year’s Education Foundation Auction! Save the date now – November 14, 2013 in Reno, Nevada. Plans are being made and we need you to make the Auction a success again this year! We need your donations. The Education Foundation Auction’s success depends on you – the ASFMRA members, sponsors, Chapters, and nonmember supporters.
There are numerous opportunities for you to help. Donate an item for either or both the Live and Silent Auctions. No item is too small or too large. All items make a difference. Your attendance at this event shows your support and there is always something for everyone. Bid on items and bid often. You may be a winner of that special item. Volunteer to help with the Education Foundation Auction if you have time.
FIRST DONATIONS RECEIVED – This year, Mary and Jim Rickert were the first to make a donation to the Auction! You will want to bid on the Go West Coffee Table Book as it is published by Range Magazine and is a book of photos of cowboys and the old west. There is also a photo by Mary Rickert in the book! Mary and Jim have also donated Wild Rice Products from Fall River Wild Rice which contains a variety of products, uncooked, pre-cooked, chocolate wild rice bar, and pancake mix.
Make your plans to come to Reno and be part of this special event. To make your tax deductible donation, simply Click here to go directly to the Auction Donation form.
The deadline for submitting Auction items is October 29, 2013. Auction items should be shipped directly to the Peppermill Hotel & Casino to arrive no later than Thursday, November 7, 2013. Please address your packages as follows:
HOLD FOR: Hope Evans
ASFMRA Annual Meeting / Nov. 11 – 15
c/o Peppermill Bell Desk
Peppermill Hotel & Casino
2707 South Virginia Street
Reno, NV 89502
*Recipients contact cell phone number (not required but highly recommended)
If you have any questions concerning donations, contact Hope Evans directly at: 303-692-1216 or firstname.lastname@example.org. THANK YOU for your generous donations and continued support.
Badtke will bring appraisal experience to DATCP board
BY Joan Sanstadt, Agri-View
Dennis Badtke, ARA, of Fond Du Lac, Wisc., will be bringing with him 33 years of credit and appraisal experience when he joins the board of the Department of Agriculture, Trade and Consumer Protection (DATCP) in May.
He grew up on a dairy farm near Rosendale – a 350-acre farm he and his brother still own.
Serving on a board will not be a new experience for Badtke; he’s already spent 14 years on a town board and has also served on a church board. Read more: http://www.agriview.com/feature/badtke-will-bring-appraisal-experience-to-datcp-board/article_e7f04894-97c4-11e2-bb86-0019bb2963f4.html
News from The Appraisal Foundation
The Appraisal Standards Board (ASB) has adopted its proposed revisions to Advisory Opinion 13 (AO-13), Performing Evaluations of Real Property Collateral to Conform with USPAP.
The updated AO-13 became effective upon adoption on March 27, 2013, since it applies to the
2012-13 edition of the Uniform Standards of Professional Appraisal Practice (USPAP).
You may click on the following link to download the updated AO-13:
More Appraisal news
The next public meeting of the Appraisal Practices Board (APB) is approaching. Please take the time to register for this meeting if you plan to attend.
Friday, April 26, 2013
9:00 a.m. – 12:00 p.m.
The Sheraton Austin at the Capitol
701 East 11th Street
Austin, TX 78701
Get complete info: http://ss14.gmsend.com/new/en_send_preview_iframe2.aspx?SID=0&SiteID=933&NewsletterID=964353&EmailID=97575054&HitID=1364402828510&token=c25ada9413b7cf583142eac9a311a7328de93a73