farmland values
Iowa farmland value zoomed by 29 percent this year
Farmland in Iowa is worth an average $9,751 an acre – the highest value since Iowa State University began the annual survey in 1941. Values skyrocketed by 29 percent this year, fueled by high commodity prices, better than expected crop yields and large pandemic relief payments, said associate professor Wendong Zhang.
Highest U.S. farm income in eight years, but headwinds in 2022
Despite the disruptions of the pandemic, U.S. farm income, a broad measure of profits, will be the highest since 2013, thanks to strong corn, soybean, wheat, broiler, cattle, and hog prices this year, said the USDA on Wednesday. "It is primarily a price story," said USDA economist Carrie Litkowski.
Cropland values soar by 15 percent in Midwest and Plains
High commodity prices and low interest rates fueled a sharp 15 percent increase in the value of cropland in the Midwest and Plains in the third quarter, according to surveys of ag bankers by four regional Federal Reserve banks. "Alongside prospects for further strength in commodity markets, the outlook for farm finances and agricultural land values through the end of 2021 remained strong," said a summary of the surveys.
Farmland values soar despite pandemic
Fueled by strong commodity prices and continued pandemic assistance, farmland values are skyrocketing, up by 14 percent in the central Midwest and by 10 percent in the central Plains, said the Federal Reserve banks in Chicago and Kansas City on Thursday.
Shield farmers from higher taxes for Biden projects, says House ag chair
The Biden administration could "impose a significant financial burden" on farm families with its proposal for stricter application of capital gains taxes, said House Agriculture chairman David Scott on Wednesday. Scott also said any increase in estate taxes "for those taking over farmland is untenable."
Farmland prices rise by up to 15 percent in hot market
With cash in their wallets, farmers are joining a throng of bidders that includes investors to drive up prices for farmland, said the largest U.S. farm management and real estate company on Tuesday. "Farmland sales prices are up by 5 to 15 perent in the past six months with most of the increase coming since the first of the year," said Randy Dickhut of Farmers National Co., based in Omaha.
Flush times for farmers, buoyed by strong markets and pandemic aid
Farmers in the Midwest and Plains are reaping a cash bonanza that has dramatically improved their finances a year after the pandemic pummeled commodity markets and prompted a record $46 billion in federal payments to agriculture, said three regional Federal Reserve banks on Thursday. <strong> (No paywall) </strong>
USDA data paint a nuanced portrait of absentee landlords
In agricultural lore, the absentee landlord is often a resented figure, an outsider who reaps an income from the labor of the farmer and takes away the profits rather than investing in the local community. The modern-day situation is more nuanced, says a USDA study which finds that, for the most part, "non-operating landlords" (NOLS) live fairly close to their property.
Higher blends and exports to carry ethanol out of pandemic
U.S. ethanol production plunged 13 percent last year due to the pandemic, costing the industry around $4 billion in sales. But it may recover fully by 2023, on the strength of larger exports and rising domestic use of higher blends of ethanol into gasoline, said the Food and Agricultural Policy Research Institute.
Farm income improves significantly, say ag bankers
Heartened by sharp increases in commodity prices, farmers and ranchers across the Midwest and Plains are paying off bank loans and opening their wallets for big-ticket purchases, said a report from the Federal Reserve on Wednesday.
In pandemic year, cropland values in Farm Belt are steady to slightly lower
The coronavirus pandemic may be the defining event of 2020, driving the United States into a recession and pummeling commodity prices, but cropland values in the Farm Belt have been relatively unaffected — stable to slightly softer, said the USDA on Thursday.
Signs of Covid-19 slump in Indiana farmland prices
Farm managers, land brokers, appraisers, and other professionals attribute a modest decline in Indiana farmland values in the first half of the year, a trend expected to continue into the winter, to disruptions accompanying the coronavirus, said Purdue University on Thursday. <strong>(No paywall)</strong>
Federal payments soften farm financial stress
Agricultural credit conditions remain weak, but government payments "appear likely to limit the severity of financial stress among farm borrowers in the coming months," said the Federal Reserve in a quarterly report on Thursday. <strong>(No paywall)</strong>
Farmland values constrained by falling income, pandemic
Farmland values across the Midwest and Plains are steady or lower than they were last June under the weight of the coronavirus pandemic and fears of declining farm income, said the largest U.S. farm management and real estate sales company. (No paywall)
Farmers borrow less, and tariff payments may be why
Agricultural lending declined during the second half of 2019, and while that reflected lower production costs, it “likely also was due to an increase in revenue from government payments (Market Facilitation Program) connected to trade disputes that lingered through the year,” said the Federal Reserve on Thursday.
Farmland values: Steady, with a risk of decline
Despite the dour mood in the agricultural sector, prices for good-quality farmland held steady in 2019, partly because less land than usual was on the market, said Farmers National Co., a farm management and real estate company.
Short on cash, some farmers will sell assets during winter
Low commodity prices and high costs are tightening the credit squeeze on the farm sector, with little expectation of improvement in the near term, according to ag bankers in the Midwest and Plains. Some farmers and ranchers will liquidate assets during the winter to stay afloat, and some highly leveraged operators will be forced out of business, they said.
Profitability of many midwestern corn, soy farms ‘will almost surely fall’
Farmland values are falling for the fifth year in the Midwest, and one factor in the decline is “muted expectations for farm income” this year, said the Chicago Federal Reserve Bank on Thursday. “The profitability of many corn and soybean farms will almost surely fall from their 2018 levels — possibly by a lot for some.”
Land values rise while farm income shrinks in northern Plains
Continuing a four-year trend, land values rose during the growing season in the northern Plains, despite financial tightening in the farm sector, said ag bankers in a quarterly survey by the Minneapolis Federal Reserve Bank.