Two More “Good” Years; Then What? Leverage the Key
It’s all about how farmers handle interest rates and leverage when it comes to how this upswing in farmland values end. That’s the personal view of Jason Henderson, economist and Omaha branch executive, Federal Reserve Bank of Kansas City.
Speaking at the recent annual meeting of the Iowa chapter of the American Society of Farm Managers and Rural Appraisers, Henderson says: “The key question looking forward is how will U.S. agriculture handle its interest rate risk?”
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Other headlines from LandOwner:
$15,000+ in central Illinois!
Long-term Commodity Trends Still Positive for Land Values
Farmers will seed the most acres in over a decade
From The Kiplinger Agriculture Letter
U.S. farmers will be a busy lot this spring. They’ll seed the most acres in over a decade… with more than 70% of the plantings in corn, soybeans and wheat, by far the leading U.S. field crops.
Why? Strong prices. Demand for U.S. ag goods is on the upswing at home and abroad, and supplies are limited after last year’s drought. More available land. The acreage enrolled in the Conservation Reserve Program is 4.1 million less than in ’11…crops will be seeded on a lot of that land.
Improved rainfall prospects. La Niña, a key drying force in the Pacific Ocean, has weakened, increasing the likelihood of normal weather conditions throughout much of the U.S. Moreover, heavy snows and rains in the Midwest, Southeast and Great Plains are encouraging to farmers preparing for the field. Login to Member Resources to download the latest issue and read more.
Appraiser Licensing and ASFMRA Designation Change Coming in 2015
There is one particularly important change that is coming to the requirements for Certified General Licensing and the ARA and RPRA. Effective January 2015, anyone seeking a Certified General Appraisal License will be required to have a four year college degree from an accredited university. The “in Lieu” alternative is going the way of the dinosaur and 8 track tapes – that is, it going to disappear!
As an Appraisal Foundation Sponsor, ASFMRA is required to have requirements that are no less stringent for our designations than those to hold a Certified General License. This means that both of our appraisal designation the Accredited Rural Appraiser (ARA) and the Real Property Review Appraiser (RPRA) designations will require a four year degree as well. That will also take effect in January of 2015.
What does this mean for someone seeking a CG license? Well, if you have a college degree, it doesn’t have any effect on you. If you don’t, you will either need to complete the licensing process before January 2015 or you’ll need to get a college degree. The same holds true for our ARA and RPRA designations.
All changes to the requirements to become a CG Appraiser only affect those people who are seeking to become licensed or who are upgrading their license (for example, from CR to CG).
Other notable changes that take effect in January 2015:
• All required experience for licensure (3000 hours for a CG license) must be completed before taking the examination for licensure
• All candidates for a real property license/certification will be required to submit to a background check. States are encouraged to do this for all existing appraisers as well.
• Appraisers will only be able to get CE credit for a course once in a CE cycle.
• Changes were made to the requirements for a Supervisory Appraiser
The Appraisal Profession is maturing and with that, there is a push for the professional requirements to reflect those in other similar professions. While ASFMRA is concerned that we are making it increasingly difficult to become an appraiser, we also believe that this particular requirement will help us demonstrate to the world that appraisers are every bit the equal in training, knowledge, and expertise to other professions.
One last note, until January 2015, ASFMRA is suspending the college/in Lieu requirement for the RPRA designation. If you’ve wanted to pursue the RPPA designation, but do not meet the college degree/In Lieu requirement, now is the time to act! You can find out more at asfmra.org or by contacting Debe Alvarez at 303-692-1225 or email@example.com.
For more information on the changes to the Real Property Appraiser Qualification Criteria the Appraisal Foundation has adopted, you can download the new criteria from the Appraisal Foundation.
Prices Paid for Illinois Farmland Continue Upward Ascent
(Bloomington, IL – March 14, 2013) Prices being paid for Illinois farmland continued their upward ascent during 2012 and are expected to continue to rise into the foreseeable future according to the 2013 Illinois Land Values and Lease Trends Report released here today at the Illinois Land Values Conference sponsored by the Illinois Society of Professional Farm Managers and Rural Appraisers.
“The price of Excellent productivity farmland was estimated at $10,510 per acre price on January 1, 2012 and $12,670 per acre price on December 31, 2012, an increase of 21 percent during the year,” says Dale Aupperle, AFM, ARA, general chairman for the annual Land Values Report program sponsored by the Society. “Good quality farmland price was estimated at $8,980 at the beginning of the year and $10,500 at the end of the year, an increase of 17 percent. Average farmland price was $7,560 per acre at the beginning of year and $8,770 at the end of year, an increase of 16 percent. And Fair productivity price was $5,980 at the beginning of the year and $6,980 at the end of the year, indicating a price increase of 17 percent.”
The survey was done late in 2012 and early in 2013 by members and affiliates of the organization and reflects activity across the state throughout 2012. The data were compiled by Bruce Sherrick, Ph.D. at the University of Illinois and Gary Schnitkey, Ph.D., also with the University’s Colleges of ACES.
The complete Illinois Farmland Values and Lease Trends Report is available at $15 per copy. The 104-page document can be ordered online at www.ispfmra.org. The information is divided into 10 geographic regions across the state and includes 2001-2012 Land Values Summary Charts by region broken down by Productivity Index categories.
California Chapter Releases 2013 TRENDS at Outlook Conference
With attendance approaching 250, the California Chapter released its latest issue of Trends in Agricultural Land & Lease Values during the closing session of Outlook 2013 – California’s Premiere Agribusiness Conference on March 21st. The lineup of speakers at the event included California Secretary of Agriculture, Karen Ross; California Farm Bureau President, Paul Wenger; Presidents of the Almond Board of California, American Pistachio Growers, Grape and Tree Fruit League and Walnut Commission; the President of California Citrus Mutual; VP of Marketing for Driscoll’s and key representatives from Rabobank, the Wine Institute, and Hanzell Vineyards. “We had a very full day,” said conference chairman and moderator, Nat DiBuduo, AFM. “There was a lot of key information presented and I feel all of the speakers did an excellent job of keeping with our theme in sharing success stories of California agriculture.” Tony Correia, ARA, presented the always popular session on agricultural land values as the conference drew to a close. With the Trends publication now in its twenty-second year, it has grown to be a highly regarded and widely recognized resource tool. The 94 page, four color magazine provides current and historical land and lease data on rural properties throughout California and Nevada.
The Outlook conference is held annually and rotates its location between Sacramento and the southern San Joaquin Valley. It is held in conjunction with the chapter’s California Classic Barbecue and Scholarship Auction and is the largest event put on by the organization each year. Copies of Trends can be purchased in both print and electronic formats from http://www.calasfmra.com/trends.php. For more information, email firstname.lastname@example.org.
Oregon Chapter Offers Marshall & Swift Training Seminar
May 9-10, 2013
Washington Chapter Spring Meeting
May 9-10, 2013
Appraising Rural Residential Properties Seminar
Download a flyer for complete info.
News from Wyoming Chapter
Governor Matt Mead has signed into law HB 26, Appraisal Management Company legislation, requiring a bond and giving oversight to the Wyoming Real Estate Appraiser Board. Although this does not immediately affect rural appraisers, our thought to support it is based on the effects of our friends in the residential profession of appraisal. Secondly, if AMCs become popular in agricultural settings, we have legislation in place to assist in monitoring it from the State level. Third, the State Appraisal Board needs some teeth for governing in circumstances when activity might be in question.
Winter wheat continues to grow, although stands are less than desireable and some interseeding taking place. Grass conditions for most of the state is poor. Intermittent snows have provided minor relief, with the real tell tale sign being what rainfall we receive hopefully this spring. Ranch properties are having interest, with slight increase in rangeland prices, despite dry conditions from 2012 carrying into 2013. Realtors are saying that viewings of properties and interest in general is up from January and February. Storage of irrigation water in reserviors is below normal over much of the State. With that said, the many cows and yearlings that have been sold in 2012 and early 2013 might be a blessing for future range conditions.
Paul N. Craig
The ASFMRA was honored to welcome Paul into the membership in 1960. In 1992, he became a Professional member. Paul maintained his Professional membership until he transferred to the Retired classification in 1998. He served on the Management Seminars Committee from 1979 to 1981 and he also served on the Program Committee in 1978. Paul was a charter member of the Wisconsin Chapter. He will be missed by many. Our thoughts and prayers are with his family.
Read an online obituary: http://www.cressfuneralservice.com/obituary/114415/Paul-Craig/
News from the Appraisal Foundation
The Appraisal Standards Board (ASB) has issued the following document:
2013 SUMMARY OF ACTIONS RELATED TO PROPOSED USPAP CHANGES
This document includes revisions adopted for the 2014-15 edition of the Uniform Standards of Professional Appraisal Practice (USPAP).
Questions? Please contact Emily Mann, Standards Administrator (email@example.com)
The Appraisal Foundation Seeks Candidates for Vacancies
on the Appraisal Practices Board and Board of Trustees
Application Deadline is April 2, 2013
The Appraisal Foundation is conducting its annual search for qualified candidates to serve on the Appraisal Practices Board and the Board of Trustees. The deadline for completed applications is fast approaching on April 2, 2013.
Details for each are outlined below. Please note, however, that an individual may submit an application for the Appraisal Practices Board or the Board of Trustees, but not both boards at this time.
Get complete info: http://a.ss8.gmsend.com/new/en_send_preview_iframe2.aspx?SID=0&SiteID=933&NewsletterID=973001&EmailID=97575054&HitID=1363707371424&token=c25ada9413b7cf583142eac9a311a7328de93a73
The Appraisal Practices Board (APB) has issued the following exposure drafts:
First Exposure Draft – Identifying Comparable Properties
Issued on March 21, 2013
Written comments requested by April 22, 2013
First Exposure Draft – Identifying Comparable Properties for Automated Valuation and Mass Appraisal Models
Issued on March 21, 2013
Written comments requested by April 22, 2013
Send comments to: APBComments@appraisalfoundation.org
The Appraiser Qualifications Board (AQB) has issued the following Exposure Draft:
Second Exposure Draft of Proposed Interpretation and Revision to the Real Property Appraiser Qualification Criteria
Issued on March 22, 2013.
Written comments requested by April 30, 2013.
Send Comments to AQBComments@appraisalfoundation.org
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