Ag News

 View Only

ASFMRA Ag News - January 31, 2023

By ASFMRA Press posted 01-31-2023 11:11 AM


Carbon Program Providers Say Buyer Demand Is Outpacing Farmer Supply

It might seem like farmer interest is a moving target fueled by fluctuations in the commodity markets. While carbon programs announce their first and second rounds of payments to farmers, it seems the price for the carbon sequestered is also a moving target.

Carbon by Indigo announced their second tranche of payments in December 2022 – $3.7 million to 450 farmers. The company reports it has consistently increased the price it pays for carbon credits.

“Demand is currently outpacing credits produced by farmers in our program,” says Heather Gieseke, vice president of carbon commercial for Indigo Ag. “As the market continues to mature and corporate buyers increasingly focus on high-quality and registry-verified carbon credits, we expect to see increased demand and rising prices continue for Indigo’s credits.”

Read the Full Story

A New Way to Rent Ground Is Gaining Traction — With Cash Rent Bids In Illinois Topping $600 Per Acre

It's been said records are meant to be broken, which was certainly the case for land auctions in 2022. Cash rents are following suit, and a relatively new concept in the auction world is gaining traction among landowners and farmers.

According to Jim Rothermich, ARA, of Iowa Appraisal, cash rent auctions are exactly as they seem: The landowner places a piece of farm ground up for lease in an open and transparent auction format.

“Rent auctions provide true open market rental valuation and answer the question: What will the market bear for my ground,” Rothermich says. “Farmers bid based on how much they would pay per acre to farm the ground for the specific lease term.”

Read the Full Story

As the Colorado River Shrinks, Washington Prepares to Spread the Pain

The seven states that rely on water from the shrinking Colorado River are unlikely to agree to voluntarily make deep reductions in their water use, negotiators say, which would force the federal government to impose cuts for the first time in the water supply for 40 million Americans.

The Interior Department had asked the states to voluntarily come up with a plan by Jan. 31 to collectively cut the amount of water they draw from the Colorado. The demand for those cuts, on a scale without parallel in U.S. history, was prompted by precipitous declines in Lake Mead and Lake Powell, which provide water and electricity for Arizona, Nevada and Southern California. Drought, climate change and population growth have caused water levels in the lakes to plummet.

“Think of the Colorado River Basin as a slow-motion disaster,” said Kevin Moran, who directs state and federal water policy advocacy at the Environmental Defense Fund. “We’re really at a moment of reckoning.”

Read the Full Story

High Farmland Prices Not Deterring Buyers

Reports of farmland in the Corn Belt selling far north of $20,000 per acre suggests that the market has gone haywire. That isn’t the case, according to Bruce Sherrick, Ph.D., director of the TIAA Center for Farmland Research at the University of Illinois. Sherrick believes prices merely follow agricultural economics.

“Markets are incredibly rational,” he said. “Going back to the beginning of the Trump administration, you had market facilitation payments and adjustments for other things. The pandemic hit other programs with low interest rates. After 2019 with high commodity prices and long-term income that looks pretty good. We had marketing conditions that were very favorable to agriculture and markets that responded appropriately.”

Russell Hiatt, AFM, ARA, president of the Illinois Society of Professional Farm Managers and Rural Appraisers, agrees. “I don’t think online auctions — which popped up because of COVID — are responsible for getting land higher than it should be,” he said. “But it did open up the auctions for more buyers. You didn’t have to physically be where the auction was being held. Virtual bidding allowed a lot more buyers. You can bid on a farm in central Illinois and be sitting in Hawaii.”

Read the Full Story

Ag ‘Giant’ Dave Morris’ Farmland up for Grabs? MSU Trying to Sell, Sources Say

An alleged promise made by Michigan State University (MSU) to keep Dave Morris’ farmland in production agriculture may be no more, Michigan Farm News has learned.

Eagle farmer Dave Morris gifted MSU his farmland in 2005. But Morris, who died in 2009, had a caveat: the farmland must stay operational for 25 years, according to his family. Now mid-Michigan locals say the university is trying to sell Morris’ property — located south of I-96 and Wright Road interchange — and convert it into a developed site focused on high-tech manufacturing.

The proposed mega site in Eagle Township is called the Michigan Manufacturing Innovation Campus. There, MSU owns about 1,300 acres of the former Dave Morris farm, which is already under contract, according to Crain’s Chicago, by the Lansing Economic Area Partnership (LEAP).

Read the Full Story

ASFMRA Government Relations Update

ASC Holds Hearing on Appraisal Bias

Last week the Appraisal Subcommittee (ASC) held a public hearing at the CFPB. The Hearing featured witness testimony from Dr. Junia Howell of the University of Illinois Chicago, homeowners Tenisha Tate-Austin and Paul Austin, Michael Fratantoni, Chief Economist, Senior Vice President, Research and Industry Technology of the Mortgage Bankers Association, and Craig Steinley, President of the Appraisal Institute. It’s clear from both Mr. Park’s statement to the Subcommittee and CFPB Director Chopra’s questions at the end, that the appraisal regulatory structure (ASC authority over TAF) is being questioned.

House Republicans Name Agriculture Committee Members

Twelve of the 28 Republican members are new to the Committee for this session. Although, one of the new members is returning former Chairman Frank Lucas (OK). He asked for a waiver to be seated on the Committee so he can be more directly involved in writing the 2023 farm bill.

Returning Members include Representatives Glenn Thompson (PA) — Chairman, Austin Scott (GA), Rick Crawford (AR), Scott DesJarlais (TN), Doug LaMalfa (CA), David Rouzer (NC), Trent Kelly MS), Don Bacon (NE), Dusty Johnson (SD), Jim Baird (IN), Tracey Mann (KS), Randy Feenstra (IA), Mary Miller (IL), Barry Moore (AL), Kat Cammack (FL), Brad Finstad (MN).

New or returning Republican Members are Frank Lucas (OK), John Rose (TN), Ronny Jackson (TX), Alford (MO), Lori Chavez-DeRemer (OR), Monica De La Cruz (TX), John Duarte (CA), Nick Langworthy (NY), Max Miller (OH), Marc Molinaro (NY), Zach Nunn (IA), Derrick Van Orden (WI).

House and Senate Democrats Roster for Agriculture Committees Announced

Last week both the Democrats in the Senate and House announced their Agriculture Committee Rosters although the House Democrats have 3 seats that are TBD.

The Senate Democrat line-up should look familiar. With the pick-up of one seat overall in the Senate, the Democrats have added one Senator to their roster for a 12 -11 ratio (the previous Congress the ratio was 11 -11). Returning Democrat Senators to the Committee by order of seniority are: Stabenow (MI), Chairwoman, Brown (OH), Klobuchar (MN), Bennet (CO), Gillibrand (NY), Smith (MN), Durbin (IL), Booker (NJ), Lujan (NM), and Warnock (D-GA). Two new Democrat Senators were added, Welch (VT) and Fetterman (PA). The Senate Republicans have not announced Committee assignments to date.

Over in the House Ranking Member Scott announced the Democrat Agriculture Committee line-up:

Returning members are: Rep. David Scott (GA-13), Ranking Member, Jim Costa (CA-21), Jim McGovern (MA-02), Alma Adams (NC-12), Abigail Spanberger (VA-07), Jahana Hayes (CT-05), Shontel Brown (OH-11), Stacey Plaskett (VI-AL), Sharice Davids (KS-03), Elissa Slotkin (MI-07). New to the Committee are: Yadira Caraveo (CO-08), Andrea Salinas (OR-06), Marie Gluesenkamp Perez (WA-03), Don Davis (NC-01), Jill Tokuda (HI-02), Nikki Budzinski (IL-13), Greg Casar (TX-35), Jasmine Crockett (TX-30), Jonathan Jackson (IL-01), Eric Sorensen (IL-17) and Gabe Vasquez (NM-02).

You can also find the House Republican and Democrat Committee Roster for the House Financial Service Committee here.

NSAC Takes Aim at Crop Insurance

In a blog release last week, the National Sustainable Agriculture Coalition (NSAC) calls for capping and means testing crop insurance premium assistance. The Blog notes that the federal crop insurance program is the most expensive program authorized in the farm bill, excluding nutrition spending, and is a primary driver of monoculture commodity production in the United States. Record-high taxpayer subsidies benefit private insurance companies and a small number of the largest commodity farms, while most farmers are unable to access insurance at all.

Similar attacks will surface throughout the year as Congress begins to write the 2023 farm bill.

USDA Deputy Secretary Bronaugh Announces Departure

Last week USDA Deputy Secretary Bronaugh announced she will be leaving her role as Deputy Secretary. In her announcement, Bronaugh, the first African American woman to hold the position, said, “It is with mixed emotions that today I am announcing that I will step away from my role as deputy secretary in the coming weeks so I can spend more time with my family.”

Welcome New Members

Help us welcome our newest members to ASFMRA! We are thrilled that you have chosen ASFMRA as the organization to be affiliated with. Because of you, ASFMRA continues to grow and support rural property professionals across the nation!

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
Gregory Billings in Sierra Vista, AZ (Arizona Chapter)
Kathleen Brown in Knoxville, TN (Mid-South Chapter)
Bruce Cannon with Cannon Appraisal in Findlay, IL (Illinois Chapter)
Hayley Daniels with First Mid Ag Services in Maroa, IL (Illinois Chapter)
Dalton Davis with Farm Credit of Mid-America in Thorntown, IN (Indiana Chapter)
Nate Downey with Peoples Company in Indianola, IA (Iowa Chapter)
Cedrick Drahn with High Point Land Company in Farmersburg, IA (Iowa Chapter)
James Ferguson with Sable Ag in LeRoy, IL (Illinois Chapter)
Joshua Filson in West Jefferson, OH (Ohio Chapter)
Samantha Fleming with Compeer Financial in Freeport, IL (Illinois Chapter)
Tyson Hall with Masters-Hall Appraisal in Middleton, WI (Wisconsin Chapter)
Austin Harris with American forest Management, Inc. in Charlotte, NC (Carolinas Virginias Chapter)
Rebekah Horton with Agriland Advisors in Mesilla Park, NM (New Mexico Chapter)
Kalyn Horvey in Rapid City, SD (South Dakota Chapter)
Paul Hubert with Farmers National Company in York, NE (Nebraska Chapter)
David Hurst with Myers Appraisal LLC in Lancaster, KY (Kentucky Chapter)
Briana Lamphier with LC Valuation Group in Cedaredge, CO (Colorado Chapter)
William Mackey with Bill Mackey Real Estate in Demopolis, AL (Alabama Chapter)
Patrick McPheeters in Kirkwood, MO (Missouri and Northeast Chapters)
Rylie Miller with Farmers National Company in Lafayette, IN (Indiana Chapter)
Jack Niemeyer in Auxvasse, MO (Missouri Chapter)
David Oberrender with Kokel-Oberrender-Wood Appraisal, Ltd. In Georgetown, TX (Texas Chapter)
Don Putz with Hertz Farm Management in Dysart, IA (Iowa Chapter)
Trevor Salisbury with Farmland Reserve, Inc. in Nobelesville, IN (Indiana Chapter)
Calley Satriana with Ag New Mexico Farm Credit in Dona Ana, NM (New Mexico Chapter)
Owen Saxton in Eldridge, IA (Iowa Chapter)
Scott Swanbery with Lunar Holdings LLC dba Lunar Appraisal Group in Mesa, AZ (Arizona Chapter)
Travis Swinson with Travis Swinson in Spruce, MI (Michigan Chapter)
Dustin Tetzlaff with Burlage Peterson Auctioneers & Realtors, LLC in Brookings, SD (South Dakota Chapter)
Jessie Ward with Farm Credit Services of America in Ryan, IA (Iowa Chapter)
Lori Weykman with Agrinomic Insights in Clifton Springs, NY (Northeast Chapter)
Jeanne Williams with Hertz Appraisal Services, Inc. in Mankato, MN (Minnesota Chapter)

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. We thank you for spreading the word, you are the driving force behind our continued growth! 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!

Gatlin Fenwick
Blake Florell, AFM
Tarah Goodman
Boyd Harris
William Hodges, ARA
Donald Jacobs, AFM
Terry Kestner, ARA, RPRA
Tanner Knowlton
Kimberly Larson
Emily Lucke
Michael Mays, ARA
Colin McVaugh, ARA
Brian Neville, AFM
Deanne Phelps
Jim Pruitt, RPRA
Matthew Pullen
Bailey Reynolds
Rebecca Stone, ARA
Morgan Troendle, AFM
Justin Uhrig
Raymond Wagester, ARA
Kyle Walker, AFM, AAC
Lee Williams, AFM

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