How the War in Ukraine is Impacting U.S. Farmland Prices
A later planting schedule in many states, coupled with the conflict in Ukraine, has had an impact on producer inputs, the market and land prices, according to a land value report from Farmers National Company, which offers landowner services such as real estate and auction sales and professional farm management in the U.S.
The stronger land prices of late 2021 continued higher through the first half of 2022, according to the market report. After a calm period at the start of 2022, in which the land market remained steady, sales prices took another jump up as a result of the outbreak of war in Ukraine and ongoing inflation fears. Farmers saw stronger commodity prices and investors wanted a low-risk inflation hedging investment, which together propelled the competition for good cropland.
“Prices for quality cropland are up 20% in some areas since the first of the year. Recent Farmers National Company auction sales demonstrate the strength in the land market so far in 2022. Good land that was selling for around $16,000 last fall sold for $19,000 to $21,500 per acre at company auctions in March. This increase in prices is on top of a 15% to 30% jump in value across most Grain Belt states in 2021,” said Randy Dickhut, senior vice president for Farmers National Company. Read the Full Story
Grateful Dead Ranch for Sale for $35 Million
Wyoming ranches could never be called a dime a dozen, but there are some ranches that stand out because of historic value, the quantity and quality of natural resources, or the sheer beauty of the place. The Bar Cross Ranch in Cora, Wyoming could qualify on all of these fronts.
Not only is it one of the oldest ranches but is 35,000 acres large and sits in one of the most picturesque parts of the state. That might explain a price tag of $35 million.
Some people say for that price, the buyer gets more than just a ranch, the buyer gets a part of history with a lineage that is remarkable. Not only does it have a pedigree in the ranching world but a lineage associated with one of the most prolific bands in modern history.Read the Full Story
How Six Farmers are Dealing With Inflation and Supply Chain Issues
I asked several grain farmers how this year’s inflation and supply chain shortages have affected their operations and what they’ve done (and intend to do) in response to the challenges.
Here is what they had to say.Read the Full Story
Report Projects Midwest Farmland Losses From Development
Smart growth and investment in America’s downtowns and main streets must occur now to secure the land that grows our food, according to American Farmland Trust’s new report “Farms Under Threat 2040: Choosing an Abundant Future” and the accompanying web mapping tool.
“It is urgent we safeguard the land that grows our food,” said Mitch Hunter, AFT research director and lead author of the report.
“In recent years, the global food system has been severely disrupted by the coronavirus pandemic, the war in Ukraine and widespread drought — pushing millions more people into severe hunger. The mounting effects of climate change and the rising global population will make it ever harder to ensure a stable food supply in the coming decades.”Read the Full Story
USDA Promises Better Rural Internet for 31,000 Residents
Rural America knows all about bad cell service, bad internet connection, and questionable promises by government agencies. However, the Biden-Harris Administration said it is setting aside $401 million specifically for high-speed rural internet access. Time will tell how successful applicants are in securing better services through the programs. If not, producers will keep doing what they’ve always done — make things work.
U.S. Department of Agriculture Secretary Tom Vilsack announced that the department plans to invest in internet access for 31,000 rural residents and businesses in 11 states. The announcement is part of a larger group of investments called the ReConnect Program, awarded through the USDA’s Telecommunications Infrastructure Loan and Loan Guarantee program.
“Connectivity is critical to economic success in rural America,” Vilsack said. “The internet is vital to our growth and continues to act as a catalyst for our prosperity. From the farm to the school, from households to international markets, connectivity drives positive change in our communities. The investments I am announcing today will help 31,000 people and businesses in large and diverse regions across the country access new and critical opportunities.”Read the Full Story
ASFMRA Government Relations Update
Senate Democrats Reach Agreement on Budget Reconciliation Package
Last week Senator Manchin (D-WV) surprised the Washington establishment by reaching an agreement with Senator Schumer (D-NY) on a reconciliation (only need 50 votes for passage) package for FY 2022. The Senate will debate the reconciliation bill this week. The package includes more than $20 billion for farm bill conservation programs and conservation technical assistance and another $20 billion for USDA energy and forestry programs. The House currently started its traditional August recess but will come back to Washington if the Senate passes the reconciliation bill.
The Senate bill would add over 230% to the USDA conservation programs baseline (FY 2023 through 2026). For example, the Environmental Quality Incentives Program (EQIP) would total $16.55 billion (FY 2023 – 2026) instead of the current $8.1 billion over that period. If you recall, the previous budget reconciliation bill that passed in the House but was not voted on in the Senate included $5 billion for $25 per acre cover crop payments over 5 years. This provision did not make the Senate bill.Senate Releases FY 2023 Appropriations Bills
Last week Senate Appropriations Chairman Patrick Leahy (D-VT) released all 12 FY 2023 appropriations bills. None of these bills have moved through subcommittee or committee. The Senate agriculture bill is a little less generous than the House version, which has moved across the House floor. The Senate would provide $71.076 million for the Risk Management Salaries and Expenses, while the House provides $75.443 million. The Senate provides the FSA $1.548 billion, while House has provided $1.556 billion. NRCS would receive $926.599 million for FY 2023 from the Senate, while the House provided $1.024 billion.House Agriculture Committee Chairman Scott Releases Cattle Bill
Chairman David Scott (D-GA) introduced livestock legislation HR 8590
last week before the House broke for its August recess. The bill would create additional premium subsidies for producers with 100 head or less under the Livestock Risk Protection (LRP) insurance plan. It would also authorize higher A&O payments for those policies. The bill also would create a Farm Service Agency program to pay small livestock producers for revenue losses.USDA Extends ERP Deadline
that it will indefinitely extend the deadline for producers to return the pre-filled applications for Phase One of the Emergency Relief Program (ERP). While most crop insurance customers that may be eligible for ERP Phase One received their pre-filed applications in May, there are some who should expect to receive a form in August including:
- Producers who had an eligible loss in 2020 that had been recorded in the crop insurance records as a 2019 loss (e.g., prevented planting claims); and
- Producers with policies that required additional information before being able to calculate an indemnity for 2021 losses (producers with 2020 losses would have already received that application). Policies that required additional information include Supplemental Coverage Option (SCO), Enhanced Coverage Option (ECO), Stacked Income Protection Plan (STAX), Margin Protection Plan (MP) or Area Risk Protection Insurance (ARPI).
In Memory: Leonard Meador, AAC
The ASFMRA was honored and pleased to welcome Leonard into the membership in 1998 as an ASAC Dual member. He obtained his Accredited Agricultural Consulting (AAC) designation and went to Accredited in 2006. Leonard was actively involved with the Society. He served on the Management/Consulting Education/Accreditation Committee as a member from 2006-2010 as well as from 2012-2014, as the Chair from 2008 and again from 2010-2012, he was a Mentor for the committee from 2014-2015. Leonard served on the Appraisal Education/Accreditation Committee in 2008. He was on the Program Committee from 2007-2010, and again from 2013-2015. Leonard also served as a member on the Education Foundation Board from 2007-2012 and again from 2017-2022. The ASFMRA was notified that Leonard passed away the evening of July 24, 2022. Leonard made many friends through his association with the Society and will be greatly missed. Our prayers and thoughts are with his family.