Land Broker Cooperative Announces Launch of Innovative Website

The Land Broker Co-Op has just launched an amazing website and we wanted to share their press release “The Land Broker Cooperative (the Co-Op) is pleased to announce the first website for land, farms and ranches for sale using a map-based view as the primary search functionality” : Read The Full Press Release Here

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2018 USDA Land Value Report

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.

What the New Tax Law Means for Agriculture

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

Investing in Land for Retirement

March 8, 2018 Realtors Land Institute

Choosing how to save for retirement can be a decision that takes years. After all, that’s the money that you’ll be living on during your golden years. Most people stick to 401ks and stocks, but what many people don’t know is that you can invest in land real estate to save for retirement. Investing in land real estate can be a great way to save money long-term, but with any investment, you need to know what type of land to invest in, what sort of returns you can expect, and what to avoid when investing in land real estate.

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Texas Bankers Speak Up on Land Values

Agricultural Survey…Quarterly Survey of Agricultural Credit Conditions in the Eleventh Federal Reserve District. The Eleventh Federal Reserve District consists of Texas, northern Louisiana, and southern New Mexico.

The survey shows, dryland and ranchland values both increasing while irrigated land values dropped. See the entire report here.

Crop Insurance Priority 1

Crop Insurance: Priority #1, by Agri-Pulse Communications

No matter who wins this November’s presidential election, one of the first items facing a new Secretary of Agriculture will be developing a 2018 farm bill, a process sure to begin early in 2017. As we start that effort, it is worth noting that for all its rich diversity, American agriculture seems to be united behind a few large overarching issues: coordinated and scientific regulatory policy by EPA, FDA, and USDA; healthy trade promotion; biotechnology; and farm labor issues, including immigration.

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A Positive Take On Land Values

Expect Land Equilibrium

Marcia Zarley Taylor, DTN Executive Editor

LOUISVILLE, Ky. (DTN) — U.S. agriculture could dodge the long-feared collapse in farm real estate prices this commodity cycle, contend economists, lenders and appraisers attending a Farm Foundation meeting this week. But some cautioned the bubble more likely to burst will be used farm equipment values over the next year if profit margins don’t improve.

“Land values haven’t seen near the pullback that everyone predicted,” observed Bruce Sherrick, director of the TIAA-CREF Center for Farmland Research at the University of Illinois. That moderation makes sense, he added, given that farmland investors keep a long-term perspective on value despite blips in day-to-day commodity prices.

“Land investors’ expectations of future income are more like climate, not weather,” Sherrick said. If it rains too much one season, it doesn’t mean the climate has changed, he said, any more than an abrupt correction in commodity prices necessarily undermines farmland values with a 30- to 50-year history of double-digit appreciation.

“The old saying is that economists have predicted nine of the last five recessions,” Sherrick said. “The farmland bubble has been over predicted as well.”

Randy Dickhut, a senior vice president and head of appraisals at Omaha-based Farmers National Company, agreed, describing the market as balanced. After studying recent sales in the more than two dozen states where the company operates, “what we’re seeing in farmland is an equilibrium between buyers and sellers, not a bubble,” he said.  READ ARTICLE

It Is Not About Your Equity

by Peter Martin | AgWeb.com

Like most farmers, the bulk of your net worth is likely in the equity of your ground. But you might have discovered a “land rich” net worth, even a sizeable one, doesn’t assure banks will approve a loan renewal.

Generally speaking, ag lenders are cash-flow lenders. Like you, they don’t like low commodity prices. While your net worth is important to them, they’re far more interested in a positive cash flow that allows loan payments to be made as agreed. That’s not easy today. Many of you are struggling to pencil out a breakeven, let alone a profit. And then there are loan payments. As a result, many farmers face troubled loan renewals. Don’t fall for the flawed argument that equity alone will get you through your renewal, but do tout your equity as additional support for your request. READ MORE

EPA Raises Renewable Fuel Requirements

EPA Raises Renewable Fuel Requirements

Agriculture, ethanol industry welcome certainty of final rule, but say required volume is too low.
After years of delays, EPA on Monday finally released the renewable fuel standards for 2014, 2015, and most importantly, 2016.

The rule calls for a total of 18.11 billion gallons of renewable fuel in 2016, with targeted growth expected in categories such as:

cellulosic biofuel (230 million gallons in 2016).
biomass-based diesel (1.9 billion gallons in 2016 and 2 billion gallons in 2017).
advanced biofuel (3.16 billion gallons in 2016).

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AgWeb.com