ASFMRA AgNews - Vol. 12 Issue LII [December 27, 2017]

By ASFMRA Press posted 12-27-2017 10:03


Why Farmland Values Won’t Budge

There’s a moderately strong correlation between commodity prices and farmland values. If you’ve been frustrated that land values feel artificially high, you’re not alone.

“Strong farmland values right now defy logic in a lot of ways,” says Steve Bruere, president of Iowa-based land brokerage firm Peoples Co.

Some basic supply-and-demand principles do go at least partway in explaining current disparities, however. Bruere says Iowa had fewer than 150 farms up for sale as of November — less than two per county, on average.

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Three Eyes-In-The Sky Options For In-Season Scouting

Farmers looking at how to capture more information about their in-season crop performance so they can turn around quickly and make management decisions are tapping into aerial imagery. Erich Eller, owner of ForeFront Ag Solutions, Huntington, Ind., says imagery plays an important role in his crop evaluation and scouting practices with his farmer clients.

“The ultimate goal is to collect the (data/imagery) at the correct time, analyze it and turn it around into information that is actionable out in the field as quickly as possible, he says.

Knowing when and what option to use to capture the imagery is valuable—whether it’s from a satellite, drone (UAV) or airplane—because each one can fill a specific need.

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Rebound in Farmland Prices in Key U.S. State 'Looks Only Temporary Reprieve'

The first rise in farmland values in four years in the top US corn-growing state may prove only a “temporary break”, researchers cautioned, warning over a “prolonged downturn” in the farm economy, and the risk posed by Nafta renegotiation.

Farmland prices in the Midwest state of Iowa, which is often the top soybean-producing state too, rose by 2.0% to average $7,326 per acre in the year to November, Iowa State University said.

The rebound, which follows three years over which prices tumbled by 17.6%, tallies with findings from the Federal Reserve, the US central bank, which estimated Iowa land prices as being 2% higher in the July-to-September quarter than a year before.

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How "Highest and Best Use" Can Substantially Impact Just Compensation for Landowners

The taking of private property for public use is referred to as condemnation or eminent domain. While federal, state, and municipal governments may unilaterally take private property for public use, landowners are constitutionally entitled to "just compensation."[1] In South Carolina, "just compensation" is determined by considering "only the value of the property to be taken, any diminution in the value of the landowner's remaining property, and any benefits" that the remaining property will gain from the project.[2] The concept of "just compensation" is simple in theory, but complex in practice.

The entity condemning the property (the condemnor) must appraise the fair market value of property before any property is actually taken from a landowner. "Fair market value is that price which a willing buyer will pay a willing seller, neither being under compulsion to buy or sell and both being fully informed of all uses to which the property is adopted and for which it is capable of being used."[3] In appraising the fair market value of property, "[a] landowner is entitled to compensation upon the basis of the most advantageous and profitable use of his land."[4] In other words, the appraised value of condemned property will be based upon the "highest and best use" of the property. "[A] property's highest and best use must be physically possible, legally permissible, financially feasible, and maximally profitable."[5] The determination of highest and best use can be the most important factor in whether a landowner is properly compensated for property taken by condemnation. Ordinarily, this determination is made based upon the opinions of expert appraisers; those hired by the condemnor versus those hired by the landowner.

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Gulke: Farmers Might Get A Christmas Present From New Tax Reform

“Soybeans continue to be under pressure this week on better weather along with improving crop conditions in South America, which in turn is less than positive for U.S. agriculture when it comes to exports,” says Jerry Gulke as he spoke with host Pam Fretwell on the Weekend Market Report.

Watch the Report
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Land-rental Agreements Hinge on Several Factors

OCONTO FALLS — Scott Reuss fields plenty of questions in his role as the UW-Extension crops/soils agent for the northeast Wisconsin counties of Marinette, Oconto and Florence.

But one question in particular gets asked quite frequently.

“One of the most common farm-based questions I get is from a landowner who calls and asks, ‘How much is my land worth if I rent it to an agricultural producer?’ ” he said. “But there are so many factors to consider, I can’t give them the quick and easy answer they want.

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State Land Office Issues Lease for New Mexico Wind Farm

CORONA, N.M. (AP) - The State Land Office has issued a lease to a subsidiary of a California-based energy company to build a wind farm on trust land in New Mexico.

Land Commissioner Aubrey Dunn announced the 50-year lease late last week, saying Cowboy Mesa LLC has plans to construct and operate a plant capable of producing 20 megawatts, or enough to power several thousand homes.

The project will cover more than 1,600 acres of state trust land near Corona in Torrance County.

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Legal Pot in California Brings Host of Environmental Rules

At a state briefing on environmental rules that await growers entering California's soon-to-be-legal marijuana trade, organic farmers Ulysses Anthony, Tracy Sullivan and Adam Mernit listened intently, eager to make their humble cannabis plot a model of sustainable agriculture in a notoriously destructive industry dominated by the black market.

In line with a 2017 study that found marijuana grows are more damaging, plot for plot, than commercial logging in Northern California forests, Anthony said he has seen too many destructive grows. Trash-strewn clearings. Growers heaping fertilizer at the foot of a centuries-old sequoia tree, needlessly endangering it. Wild streams diverted for irrigation.

"It really bothers me when I see some of the other operations, the treatment of the land," he said.

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Illinois Farmland Auction Sets New Record

In Woodford County, Ill., 77 acres of high-quality farmland sold for a record price of $15,850 per acre Nov. 17.

The farm was located near Roanoke and was 100% tillable with a soil productivity index (PI) of 142. The maximum PI is 147, per Illinois Bulletin 811.

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Value Added Products Help Indian Dairies Tide Over Milk Price Volatility

The Indian dairy industry is seeing a steady growth in business despite volatility in milk procurement prices over the past couple of years, thanks to high margin value-added products (VADP) and a good product portfolio.

Companies such as Parag, Heritage and Dodla, among others, were able to absorb some 10-27% price rise in milk procurement, largely on the back of improved revenues from VAD products.

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Welcome New Members

Thank you for being a part of ASFMRA! Help ASFMRA welcome our new members and thank them for choosing the Society as the organization that they desire to be affiliated with. ASFMRA continues to support rural property professionals and offers services, resources and education which will be of benefit to all of our members, both professionally and personally.

We are recognizing new members of the Society on a monthly basis. You may recognize your colleagues in the following list and we encourage you to welcome them into ASFMRA!

New Members
Ryan Allen with Upper Midwest Management Corp. in Olivia, MN (Minnesota Chapter)
Brandon M. Burnett in Saint Joseph, IL (Illinois Chapter)
Haley Clark with Farm Credit Services of America in Mitchell, SD (South Dakota Chapter)
Jeffery Coleman in Findlay, IL (Illinois Chapter)
Kendra Collins with Correia-Xavier, Inc. in Fresno, CA (California Chapter)
Robert Willard Luther, III with AgCarolina Farm Credit in Elizabeth City, NC (North Carolina)
Lori Matzke with HomeStreet Bank in Newport Beach, CA (California Chapter)
Gregory Richards with Richards & Associates in Anthem, AZ (Arizona Chapter)
Brittany Shickell with Hertz Farm Management in Cedar Rapids, IA (Iowa Chapter)

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Share Your Experience - Make a Referral

You know first-hand what a great organization ASFMRA is and what it means to you both professionally and personally. Pass that benefit on to others that you know who would benefit from membership with The Most Trusted rural property professional organization – ASFMRA! Talk to those you know who would benefit from ASFMRA’s educational offerings, networking, and meetings. Let them know your experiences of being involved in this great association and some of the business contacts you have made along with lasting friendships. Your peers listed below have done just that! They spoke to individuals about ASFMRA and those individuals have now become members of ASFMRA!

Leon Carlson, AFM
James Hollenbeck
Carson Rose
Kirk Sagouspe, ARA

Thank you to all who have referred someone and in some cases, more than one, to join ASFMRA.

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2017 Education Foundation Auction – Another Success Thanks To You!

WOW! What a fantastic, successful, and fun event we had at the 2017 Education Foundation Auction in Savannah, Georgia. Thanks to all the donors, buyers, and supporters. You are the ones who make this event a success.

If you were not able to attend this year, you really missed out on some great items, fun times with meeting up with old friends, bidding wars, and more. Take a look at some of the items that were donated this year by reviewing the Auction Program Guide by simply clicking here – Auction Program Guide.

Make sure to plan to attend the Auction next year in Chandler, Arizona so you don’t miss out on the great, fun, yummy items that are sure to be available. We look forward to seeing you there!

Auction Donors...Thanks for your Support!
Aaron Bierschwale, ARA
Agri-Comm Appraisals & Washington Chapter of ASFMRA
AgWare, Inc.
Ann and Kirk Weih
Arizona Chapter of ASFMRA
Bierschwale Land Company
Bill Backhaus
Boyd Harris
Brian Gtazke, ARA
Brian Stockman
David & Moira GaNun
Dennis and Lori Reyman
Deon Herndon, ARA
Dick and Connie Edmunds
Don and Doris Cochran
Don and Lori Fisher
Farmers National Company
Georgia Chapter of ASFMRA
Glaub Farm Management, LLC
Hall and Hall, Inc.
Hatley Cobb Farmland Management
Hertz Farm Management, Inc.
Homestead Capital
Illinois Chapter of ASFMRA
Indiana Chapter of ASFMRA
Iowa Chapter of ASFMRA
Jeff Berg, ARA
Jim and Jean Farrell
Juliana Young, ARA
Kansas Chapter of ASFMRA
Kentucky Chapter of ASFMRA
Mark Akers, ARA
Mark and Debi Williams
Michigan Chapter of ASFMRA
Mid States Farm Management Co.
Mid-South Chapter of ASFMRA
Mike and Susie Krause
Minnesota Chapter of ASFMRA
Missouri Chapter of ASFMRA
Montana Chapter of ASFMRA
Northeast Chapter of ASFMRA
Oklahoma Chapter of ASFMRA
Ontario Chapter of ASFMRA
Oregon Chapter of ASFMRA
Pepper Appraisal Services
Pioneer Hybrid
Raymond Wagester, ARA
Rio Citrus to FL Chapter of ASFMRA on behalf of John Young
Robb Steinke Appraisal, LLC
Roos & Associates, Inc.
Sheraton Grand at Wild Horse Pass
South Dakota Chapter of ASFMRA
Steve and Jane Motsinger
Steve Runyan, ARA
Valley Irrigation
Value Midwest
Washington Chapter of ASFMRA
Winnie Stortzum, ARA
Wisconsin Chapter of ASFMRA
Wyoming Chapter of ASFMRA

Auction Buyers...Thanks for your Support!
Bruce Ahrens, AFM
Mark Akers, ARA
Bill Backhaus
Ray Bartholomew
David Bartlett, ARA
Aaron Bierschwale, ARA
Justin Bierschwale, ARA
Thomas Boyer, AFM, ARA, AAC
Ray Brownfield, AFM
Steve Brunson, AFM
Timothy Cobb, AFM
Donald Cochran, ARA
Richard Edmunds, ARA, AAC
Mark Elder
David Englund, AFM
James Farrell, AFM
Jean Farrell
Brian Field, ARA
Lee Folsom
Moira GaNun
Matt Gunderson
Timothy Harpster, ARA
Judy Harris
Fred Hepler, AFM, AAC
Deon Herndon, ARA
Jerry Hicks, AFM
David Hill
Theo Hirshfeld
George Janning, ARA, RPRA
Michael Kallstrom, ARA
Terry Kestner, ARA, RPRA
R. Edward Kiefer, AFM, ARA
Michael Krause, AFM
Darrell Limkeman, AFM, ARA
D. Matt Marschall, ARA
Daniel Marvel
Beth Moore
Paul Moore, ARA, RPRA
Ward Nefstead, Ph.D.
Kyle Nelson, ARA
Anna Olson
Ann Peck
James Peck, AAC
Linda Pepper
Tim Pepper, ARA
Richard Pringnitz, AFM
Corey Prins, AFM
Lori Reyman
Kathleen Rickett, ARA
Kenneth Rountree
Steve Runyan, ARA
Kenneth Schmitt, AFM
Kent Smith, AFM
Lonnie Smith
Gregory Snyder, ARA
Robb Steinke, ARA, RPRA
Michele Stockman
Rebecca Stone, ARA
Gary Thien, AFM, ARA
James Thomas
Brock Thurman, AFM
Jeffrey Troendle, AFM
Ann Weih
John Widdoss, ARA
Debi Williams
Robert Woodrow, AFM
Luke Worrell, AFM

Education Foundation Fundraising Results
Silent Auction Total: $5,756.00
Live Auction Total: $26,815.00
Online Auction Total: $100.00
Tithing Envelopes Total: $883.00
Raffle Total: $1,115.00
Additional Donations Total: $750.00
Cash Donations Total: $900.00
Total Raised in 2017: $36,319.00

The Education Foundation wishes to extend many heartfelt thanks to the Education Foundation Legacy Funding Committee, countless volunteers, bidders, and donors for your support of the 2017 Education Foundation Auction! Your dedication, energy, and participation made this event a success!

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