Agricultural Land Values Highlights
The United States farm real estate value, a measurement of the value of all land and buildings on farms, averaged $3,140 per acre for 2018, up $60 per acre (1.9 percent) from 2017 values. Regional changes in the average value of farm real estate ranged from an 8.3 percent increase in the Southern Plains region (includes Texas (9.1% increase) and Oklahoma (5.3% increase) to 1.4 percent decrease in the Northern Plains region. The highest farm real estate values were in the Corn Belt region at $6,430 per acre. The Mountain region had the lowest farm real estate value at $1,140 per acre.
This report from the USDA is a 22 page report. Read the full report here.
We received the press release from the WRCA announcing their new agreement with the City of Amarillo to keep the 2019 and 2020 World Championship Ranch Rodeo at the Civic Center in Amarillo. We are a proud sponsor of this event each year and encourage you to come out to see us this year November 8-11, 2018. Read the press release here.
Land Transition Can Lead to Unintended Consequences
by Allan Vyhnalek, University of Nebraska Extensions
Grandpa and Grandma farmed. They retired. They had two irrigated quarters. They had two sons who had started farming operations themselves. So, their transition plan was to give a quarter to each of the sons at their passing. Grandpa passed away, followed by the Grandmother about a year or so later. The lawyer handling the estate was not given specific instructions about the transfer of the quarters. He just put number one and number two in a hat, the sons drew a number.
Then there were problems. Turns out that one quarter was nearly perfect. Good soil, highly productive, and had a good well. The second quarter was sandy, alkali spots, significantly less productive and had a well that was in trouble, actually sucked air at times. There was a huge argument about being fair. One son felt it was fair that each got a quarter. The son who got quarter two didn’t feel like he was treated equitably at all. See Entire Article
Interesting facts about measuring land. Learn the definition of measurement terms such as Acre, Hectare, Chain, etc. Contributor Tom Dorn, Extension Educator, University of Nebraska Cooperative Extension in Lancaster County. University of Nebraska Facts
A new window has opened for sign-up for the Conservation Reserve Program (CRP). USDA will resume allowing continuous CRP sign-ups from June 4 through August 17.
According to USDA, producers with contracts that will mature Sept. 30 and have a contract term of 14 years or less will also be able to enroll for a one-year extension during the same sign-up period. However, producers with contracts that would breach the 15-year limit with a one-year extension are not eligible.
According to Pro Farmer’s Jim Wiesemeyer, USDA has not allowed continuous sign-ups under CRP so far in fiscal year 2018 as it sought to keep CRP acres under the cap of 24 million acres.
Limited priority practices are available for continuous enrollment, including grassed waterways, filter strips, riparian buffers, wetland restoration and others, USDA says.
Current CRP enrollment is about 22.7 million acres. USDA has not published the number of acres in the CRP since September 2017 when there were 23.43 million acres enrolled in the program.
“There were 2.51 million acres scheduled to expire as of Sept. 30 while the FY 2017 continuous sign-up resulted in 1.185 million acres enrolled in the program with contracts to start Oct. 1, 2017,” Wiesemeyer says.
The CRP program has long been accused of inflating land prices. USDA plans to combat that with updated soil rental rates for annual rental payments and will not issue any incentive payments.
–Anna-Lisa Laca, Farm Journal, LandOwner Newsletter June 28, 2018
Greg Good (back row), CLB Sales Associate and Perryton Branch Office Manager, recently attended the Realtor Land Institute LANDU Education Week in Arlington, TX.
June 11, 2018 (Chicago) – The Realtors® Land Institute (RLI), an affiliate of the National Association of Realtors®, is proud to announce a record-setting number of land real estate professionals in attendance at their annual LANDU Education Week. Fifty attendees from fourteen states gathered in Arlington, TX, last week to gain top-notch expertise through RLI’s Land University (LANDU) Education Program. Twenty-one of those students completed all 6 courses being offered towards the elite Accredited Land Consultant (ALC) Designation. READ PRESS RELEASE
New article May 16, 2018 by Farm Credit Bank of Texas (land.com)
The largest overhaul of the U.S. tax code in three decades went into effect this year, impacting farmers, ranchers and other rural landowners in a variety of ways. For the most part, financial experts anticipate benefits for these groups.
“The 2018 tax law changes include several items that I feel will be beneficial to agricultural producers,” says Burl Lowery, a Brownwood, Texas, certified public accountant and director of Central Texas Farm Credit. “The increase in the exemption in estate and generation-skipping taxes to $11.2 million in 2018 will allow more farmland to be passed to future generations with less or no estate tax.” READ ARTICLE
The extreme drought conditions are expanding in our region. Here is the latest map from the Drought Monitor and a link to their reports. Drought Monitor
Greg Good (Perryton) and George Clift, ALC attended this year’s RLI National Land Conference in Nashville, TN. It was a great conference, offering lots of good information for Land Brokers. We are looking forward to next year’s conference in Albuquerque, NM.