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4 Rules On Refinancing Your Farm Your lender works hard to keep you as a client, but even the best banking relationship can come to a close. Your farming operation may expand beyond the comfort zone of your lender. Your loan officer may relocate or retire. Your bank can scale back or withdraw from agriculture production. Your farm may not qualify for a loan renewal in times of low commodity price cycles. Because these events can occur, it pays to be prepared for a farm refinance. First, understand how lenders evaluate risk and the type of financial metrics they take into consideration when assessing a farming operation. Although these aren’t all the factors ...
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Lawsuit Over Pot, Property Values Could Have Broad Impacts DENVER — A federal trial in Colorado could have far-reaching effects on the United States’ budding marijuana industry if a jury sides with a couple who say having a cannabis business as a neighbor hurts their property’s value. The trial set to begin Monday in Denver is the first time a jury will consider a lawsuit using federal anti-racketeering law to target cannabis companies. But the marijuana industry has closely watched the case since 2015, when attorneys with a Washington, D.C.-based firm first filed their sweeping complaint on behalf of Hope and Michael Reilly. One of the couple’s lawyers, ...
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Where Artificial Intelligence Could Take Agriculture Typically, when AI is brought up around farmers, the conversation turns to how many brood cows they covered this year for breeding. In this article, AI refers to artificial intelligence. The ability to capture data on the farm has never been more readily available than it is today. Many questions about how to use and implement data are daunting and prevent producers from moving beyond the comfort of basic yield monitors and autosteer. To make the leap into data management less daunting, original equipment manufacturers (OEMs) and farm management information system groups have shifted their attention toward ...
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Does Marijuana Legalization Hurt Property Values? For now, Green Thumb Industries is a rare thing in the ever-growing cannabis business: A big marijuana company, publicly traded and with a billionaire investor, that is not also Canadian. The company says it has “consumer packaged products” in eight U.S. states — including New York, which thanks to its extremely limited medical marijuana program, has probably the most latent demand for marijuana of any state in the country — and was recently awarded five dispensary licenses in Ohio. Green Thumb is now setting its sights on New Jersey, where its plans are running into a novel argument: This big company, maybe ...
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Farmland Values Down 3.5% in 60 Countries Farmland values in the central and southern 60 counties in Illinois have declined by an average of 3.53 percent, according Farm Credit Illinois’ annual benchmark study.  This marked the fourth consecutive year farmland values have declined. The market peaked in 2014 and began the first decline in more than a decade in 2015 with an average decrease in value of 1.51 percent. In 2016 and 2017 results showed a continued average annual decline in value of 6.34 percent and 4.17 percent, respectively. Learn more. US Farm Leaders Give Their Perspectives on New Trade Deal As harvesters rolled over U.S. fields, ...
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Rising Interest Rates Will Test the Strength of Crop Land Values Many commercial row crop farmers across the U.S. have seen their margins squeezed by lower commodity prices and relatively higher production costs, says Bryon Parman, North Dakota State University Extension agricultural finance specialist. Rents have come down modestly in North Dakota, declining from a high of $69 per acre in 2015 to a statewide average of $65 in 2018. Similarly, cropland values in North Dakota mostly have held their value, declining from a high of $2,123 per acre in 2015 to $1,996 per acre in 2018. However, rising interest rates will increase borrowing costs, making operating ...
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Despite Recent Reports, Local Farmland Experts See Steady Land Market The Iowa Chapter of the Realtors Land Institute released a report earlier this month noting from March to September 2018 farmland average values across the state have dropped by 1.7 percent and 0.6 percent in northwest Iowa. Local farmland experts pointed to the six-month period as too short of a window to draw accurate conclusions on a market they said is relatively stable. "I really think we call the market off a little bit, but in reality, I would call the market steady," Acre Company realtor and auctioneer Jon Hjelm said. "We will know more six months from now about how right this ...
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The Surprising Reason Land Values Remain Strong Falling cash grain prices are resulting in lower farmland values in many Corn Belt states, but not as much as you might think. Recent survey results indicate that average prices paid for average farmland in those states declined by 1% since January 1 in Illinois, and 1.7% from March to September in Iowa. The Illinois Society of Farm Managers and Rural Appraisers and Realtors Land Institute released survey results on August 29; the Realtors Land Institute unveiled its findings September 10. Read more More News: Why Aren't Land Values Plummeting? That's a Trick Question Farm Bill Expiration ...
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Farmland Values Still Inching Upward SALEM, Ohio — Low commodity prices apparently haven’t stopped the increase in farmland values for most landowners in the Farm and Dairy readership area. Farmland in Ohio, Pennsylvania, West Virginia, Kentucky and Indiana all saw increases over the previous year, according to the National Agricultural Statistics Service, which puts out an annual farmland values report each August. In Ohio, an acre of farm real estate (land and buildings) averaged $5,740 an acre in 2017, the first increase in three years. In Pennsylvania, farm real estate averaged $5,680 an acre. Both states were up 1.6 percent over the previous year. ...
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Number of U.S. Farms Declines While Size of Farms Increases Dow and DuPont. Monsanto and Bayer. John Deere and Blue River Technology. AGCO and Precision Planting. In almost every segment of the agriculture industry — from chemical and seed, to farm equipment and technology — consolidation is taking place. And the cause of these major mergers is a direct reflection of what is taking place on the end user side: farm consolidation. “The strength in the number of farms is going to determine how many dealers there are, and to a certain extent it’s going to determine how many manufacturers there are,” says Charles R. Glass, president of Glass Management Group ...
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U.S., China to Resume Trade Talks in Washington Amid Low Expectations WASHINGTON, Aug 22 (Reuters) - U.S. and Chinese officials are set to resume contentious trade talks on Wednesday under the cloud of a prediction by U.S. President Donald Trump that there would be no real progress. The discussions among mid-level officials could set a framework for further negotiations as each country prepares to hit the other with new tariffs on Thursday in a deepening dispute over China's economic policies. Trump has threatened to impose duties on virtually all of the more than $500 billion of Chinese goods exported to the United States unless it meets his demands. ...
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​ ASFMRA Education Approved For Veterans GELNDALE, CO- The American Society of Farm Managers and Rural Appraisers® (ASFMRA®) has been approved by the Veterans Administration for veterans to use their benefits under the GI Bill® towards education in the agricultural appraisal industry. ASFMRA core education classes held at the campus in Glendale, Colorado for those seeking their Trainee License, Certified General Appraiser License and for attainment of the Accredited Rural Appraiser designation are part of the Veterans Administration approval. “This is an incredible opportunity for veterans that want to enter the appraisal profession and work with rural ...
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As Land Prices Climb, Small Farmers Look to Leasing as a Way to Stay in the Game While managing their produce farm in Berks County six years ago, Deirdre and Trey Flemming searched for open farmland and better schools for their kids. Ideally, they wanted to lay claim to land in Chester County. But property in Chester County isn’t cheap, and what’s available is often quickly snapped up and converted into equestrian property or used for other commercial ventures. And like many small farmers, the Flemmings, who own the certified organic Two Gander Farm, couldn’t afford to pay at least $1 million for just 20-some acres of land. Then a tip came their way: Did ...
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Farm Income and Land Prices are Both Falling, St. Louis Fed Survey Finds Prices of crop land are beginning to fall as a long slump in farm income continues, the St. Louis Federal Reserve Bank reports. The Fed's quarterly survey of agricultural bankers, conducted in June, found that prices for quality farmland were down 3.5 percent in the past year. Ranch or pasture land, however, got 1.6 percent more expensive, even though rents on such land fell by 9 percent. One banker said prices within a short drive of St. Louis are holding up especially well. Read More More News: Farm Real Estate Value Averaging $3,140/Acre for 2018 Wisconsin Farmland ...
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U.S. Farmland Values Hit a Record Despite Trade Fears While crop groups have sounded the alarm over U.S. trade wars, here’s one measure that shows part of the agricultural economy is still vibrant: U.S. farmland values just rose to a record. Average farmland values nationwide have increased 1.9 percent to $3,140 an acre so far this year from 2017, according to a report released Thursday by the U.S. Department of Agriculture. The gain  signals that investors are focusing on farmland as a longer-term investment, and may consider the trade tensions to be short term. Keep Reading More News: Senate Names Farm Bill Conferees Net cash farm income ...
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Farmers' Working Capital Drops to 10-Year Low The financial condition of the U.S. farm sector continues to deteriorate. The extent of the deterioration is perhaps best seen in the level of working capital which has fallen sharply since 2012. This decline does not bode well for the financial condition of many U.S. farmers. The amount of working capital (current assets minus current liabilities) in the U.S. farm sector provides an indication of the liquidity of the sector. Working capital provides a financial cushion for farmers. Learn More More News: Administration Earmarks Up to $12 Billion for Agriculture to Offset Trade War USDA Funding ...
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Farm Survey Offers Glimpse at Changing Face of Agriculture Farming in Iowa has changed significantly since the first Iowa State University Farmland Ownership Tenure Survey was taken in the 1940s. The most recent survey, released earlier this month, analyzed trend data from 2012-2017 and offered a glimpse of the changing face of agriculture at the state level. Advantage Realty and Land Management broker and manager Sam Harper pointed to the level of farms owned debt free as one of the most telling statistics revealed in the report. "Probably the number that sort of surprised me a little bit was 82 percent of the farm ground is owned now debt free," ...
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“Land Values are Strong, so I am Okay.” The other day, a third-hand conversation brought up an interesting perspective. This young, new lender to agriculture had $20 million of potential loans in his pipeline. He indicated to the farm management consultant that he felt okay because land values were still strong in his area. My perspective is that this thought process is very common,particularly later in the stages of an elongated economic downturn. Profits and cash flow are first to be suppressed in the stages of an economic downturn. The strong, proactive manager will burn through working capital that was built during good economic times. The reactive ...
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What Rising Interest Rates Mean for Farmers The Federal Reserve raised interest rates in June for the second time in 2018. Matt Monteiro, vice president of finance and treasurer for Farm Credit Mid-America, gives these points to keep in mind when thinking about how interest rates may affect farmers. 1. Rates are still historically low. When the financial crisis hit in 2008, the Federal Reserve Open Market Committee, or the Fed, set the federal funds rate to zero or a quarter percent to influence economic activity and to bring the economy back. The Fed kept it there until December 2015. The recession was prolonged and the recovery was slow. Since then, ...
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Senate Passes Farm Bill – No Crop Insurance Amendments Offered Last week the Senate passed its version of the 2018 Farm Bill by a vote of 86 – 11. You can see how your Senator voted here . A special “Thank you” to all of you that called your Senators to urge a “no” vote on the Durbin/ Grassley amendment to apply AGI to the crop insurance program and the Flake/ Shaheen amendment to cap premium assistance. It does make a difference. As it turned out, neither amendment was offered, in no small part because you and others in the commodity, crop insurance, and conservation community made phone calls and contacts to Senate offices urging against the adoption ...
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