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Farmland values and rents in Illinois are holding steady across most of the state according to the 2019 Farmland Values and Lease Trends Report released today by the Illinois Society of Professional Farm Managers and Rural Appraisers. The information was discussed at the group’s annual Land Value Conference held here. “2018 brought continued challenges for Illinois agriculture with increasing grain supplies and wide price variation as a result of the most productive soybean crop ever produced by the state,” according to David Klein, AFM, ALC, with First Mid Ag Services, Bloomington, and overall chair of the organization’s annual Land Values Project. “Most farm ...
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Farmers Dig Deep To Weather Slumping Ag Economy, But Don’t Call It A Crisis Farmers Dig Deep To Weather Slumping Ag Economy, But Don’t Call It A CrisisFarm income has taken a long, hard fall, dropping 50 percent since hitting a high point in 2013. Add to that near-record levels of farm debt, and you have a recipe for financial stress. But while economists say they can see storm clouds building, it’s not a full-blown crisis. That’s because relatively few farms have been pushed past the breaking point into Chapter 12 bankruptcy — or, worse, into losing the farm entirely. Nebraska farmer Ben Steffen felt it worst with last year’s milk prices. Sales from his ...
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Land Values Show Signs of Weakening Many agricultural experts and economists have been warning for the past few years that we could be headed for a significant correction in farm land values in the Midwest. Land value summaries showed that a reduction in average land values did occur in some regions of the U.S from 2014-16, including the Upper Midwest. Land values in the Midwest stabilized somewhat in in 2017, before showing some signs of decline in many areas in 2018. Most experts point to low commodity prices and reduced farm profitability as the primary reasons for the recent decline in land values. Iowa State University does a land value survey each ...
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Land Values Remain Fairly Stable Many agricultural experts and economists have been warning for the past few years that we could be headed for a significant correction in farm land values in the Midwest. Land value summaries showed that a reduction in average land values did occur in some regions of the U.S from 2014-16, including the Upper Midwest. Land values in the Midwest stabilized somewhat in in 2017, before showing some signs of decline in many areas in 2018. Most experts point to low commodity prices and reduced farm profitability as the primary reasons for recent decline in land values. Read More on Value Stability Fed Reserve Reports 2018 ...
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Jonesboro, AR - The Mid-South Chapter of the American Society of Farm Managers and Rural Appraisers® (ASFMRA®) released their 2019 Land Values and Lease Trends Report. This is a comprehensive look at farmland values and agricultural property lease rates throughout the mid-south region of the United States. This new publication is now available through members of the Chapter. Read This Press Release.
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USDA Says Farm Real Estate Prices Holding Up, But Worried About a Fall USDA Says Farm Real Estate Prices Holding Up, But Worried About a FallThe U.S. Department of Agriculture is concerned about a potential decline in farmland real estate prices, but has seen no sign of that happening so far, USDA chief economist Robert Johansson said on Thursday. Farmland prices are a key pillar of equity for the U.S. agricultural heartland, which has been suffering from lingering weakness in commodity prices and loss of key export markets such as China due to President Donald Trump’s trade disputes. A potential significant price-drop in farmland is something “we are ...
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Greetings,   Most of you have probably heard of the Chapter Recognition Program .  If you have not heard of it, I will briefly describe.  The program started last year as a way to encourage Chapter participation and local promotion so that we all work towards growing membership, providing the best education, resources, and networking.  There are ten criteria that must be met under the program in order to receive ASFMRA Patron Chapter status.  Chapters that meet the Patron Chapter criteria will be recognized at the Annual Conference with the program guide, promotions for the conference, signage, and during the accreditation and awards ceremony.  Additionally, ...
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Midwest and Mid-South: Farm Income Down, Farmland Values UpMidwest and Mid-South: Farm Income Down, Farmland Values Up Farmers continue to face declining farm income in the Midwest and Mid-South regions, according to the latest report from the Federal Reserve Bank of St. Louis. Yet, values for quality farmland, ranchland and pastureland all rose. The Federal Reserve Bank of St. Louis, which is the Eight District, includes all or parts of seven Midwest and Mid-South states: Arkansas, Illinois, Indiana, Kentucky, Mississippi, Missouri and Tennessee. Lenders continue to report declines in farm income relative to a year earlier. The current index value marks ...
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Marlo Dill is the President and head appraiser of AGCO-Dill & Associates LLC, an agricultural fee appraisal shop that she opened in 2004. She has been a member of ASFMRA since 1994, before she started her career in the ag appraisal industry in 1995. In this exclusive Member Spotlight, get to know Marlo, her inspiration, and what her typical day looks like! How long have you been working in agriculture appraisal/management? And what other positions have you held in the industry? My career in the ag appraisal industry began in 1995, following graduation from California State University at Fresno with a Bachelor of Science in Agricultural Business. ...
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Big Changes Ahead in Land Ownership and Farm Operators? Dig into U.S. farmland tenure to see what’s happening and what’s likely for the future, and Carson Futch’s 87-year-old dad, Alvin, is very typical. Carson, a real estate agent specializing in farmland for Lakeland-based Saunders Real Estate in central and south Florida, says his dad was a fifth-generation farmer with no family members who wanted to farm, so he put his land into a family corporation and has rented it out for decades to another large farmland manager for growing strawberries.­ It often happens, he says: “Farmers have invested in their land and in their operation all these years, so ...
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3 Factors Could Topple Farmland Values Since hitting bottom in the early 1990s, the price of agricultural land has soared, rising 169% in real terms between 1994 and 2015, according to Erik Norland, executive director and senior economist of CME Group.  “Moreover, agricultural land values were largely untouched by the financial crisis, experiencing only a small dip in 2009,” he says.  Since 2015, however, farmland prices have gone sideways. Could they be in for a big decline in value? The answer depends on three factors, Norland says. Read the 3 Important Factors. Farmland Values Normalize in Grain Belt States The pace of farmland-value drops has ...
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Farmland Rental Rates Holding Steady But with Exceptions As many farmers and their landlords renegotiate rental agreements that expired after the 2018 crop season, this generalization about farmland rental rates appears sound: “In places with good (2018) yields they’re steady. Where the yields were average or below-average, they’re going a little lower,” said Jack Davis, South Dakota State University Extension crops business management field specialist. One example: Poor 2018 sugar beet yields in the Willmar, Minn., area are pushing down rental rates this winter, said Noah Hultgren, a Willmar farmer and real estate agent. Davis’ comment about South Dakota ...
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The holiday season is over and I think my dogs are happy. My wife will not be taking any more Christmas pictures for a while. This time of the year is always packed with meetings, farm planning and budgeting, real estate sales, lease negotiations, and making sure clients have all of their information for tax season.   I often get bogged down in the daily grind but I want everyone to think about the upcoming year and the ASFMRA events that could help you grow as a professional. Some of you may directly pay for meetings and events, but most of us have a manager or supervisor that approves educational and meeting expenses.     Conversations with your ...
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Today’s Land Market is Holding Its Breath; Uncertainties Persist Questions abound in the current land market. Will the negative farm financial situation finally overcome other factors to drive land prices the final leg lower? Will outside influences put more stress on land values or actually support prices? Will regional pockets of stress spill over into the overall land market? Farm and ranch land is the key financial bedrock for American agriculture as land makes up 82 percent of total assets for the industry. With today's uncertainties in agriculture, everyone involved with owning, buying or selling ag land is holding their breath to see what will happen ...
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Preparing You and Your Clients for Tax Season It has been over 30 years since we last saw major tax reform. Here’s what to keep in mind this year, which varies slightly from previous tax seasons. 1. Plan on not filing by March 1. Many farmers automatically file and pay their income tax return by March 1. However, this year, it is likely much better to make your estimated tax payment on Jan. 15, and then file your income tax return on April 15. The IRS is still finalizing the new law and related tax forms, which will make it extremely difficult for tax preparers to complete returns by March 1. The required payment due on Jan. 15 is the lesser of: • 100% ...
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2019 Farmland Outlook: Values Stay Resilient Despite another year of low profit margins for farmers, rising interest rates and global economic uncertainty, the farmland market was flat to even slightly-higher in 2018.  “Farmland values remain relatively resilient given the downward pressure from farm incomes,” says RD Schrader, president of Schrader Real Estate and Auction Company in Columbia City, Ind. “Overall farmland values continue a slight trickle-down trend, as interest from farmers who saved in the better income years and investors continues to provide support.” The first half of 2018 showcased strength for values as limited land was sold. This ...
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ASFMRA, along with 15 additional organizations, sent a letter to the Federal Reserve, Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency requesting that the agencies hold a public meeting as part of the process to determine whether to increase the residential appraisal threshold from $250,000 to $400,000. Read the Press Release
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Farmland Value Trends Across the US: Northeast The northeast portion of the country is characterized by multiple agricultural industries from general crop farms, to timber tracts, to livestock operations including dairy, poultry hogs and horses. It also consists of widely varying areas from very rural to very developed surrounding our major cities. Farmers here are a mix of typical family-farmers tilling from 200 to several thousand acres, Plain Sect farmers operating 50-75 acres, to lifestyle farmers who own 10-30 acres. Dairy is a major industry in the Northeast and herd sizes vary. New York ranks #4, Pennsylvania ranks #5 and Vermont ranks #17 for milk ...
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Grassley Sees Farm Bill Pros and Cons The 2018 farm bill is nearly official, having passed the House and Senate without the vote of one if its stalwart supporters. After playing a key role in development of the bill, Iowa Senator Charles Grassley voted “no” in the final tally. “I don’t want it to sound like I think [Senator Pat] Roberts isn’t a good Ag Committee Chair or isn’t fighting hard enough for farmers. It’s a good farm bill, and he and Senator Debbie Stabenow, the Ranking Democrat on the Ag Committee, did a good job. It’s a bi-partisan bill and passed with a bi-partisan vote,” Grassley offered in his weekly Capitol Hill Report. “But there was an ...
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Farm Bill Passed As many of you already know, the Senate and House passed the 2018 farm bill, the Agriculture Improvement Act of 2018 , overwhelmingly last week. The measure now moves to President Trump for his signature. He has indicated he will sign it, possibly this week. The Senate voted 87-13 last Tuesday and the House  followed with a 369-47 vote last Wednesday.  Follow the links to see how your Senators and Representative voted. The bill allows offers producers a new choice between ARC and PLC on a crop‐by‐crop and farm‐by‐farm basis, applied jointly to the 2019 and 2020 crop years.  Beginning in crop year 2021, producers will have the flexibility ...
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