Farmland Forecast

Picture of the Week: Sunset in Uruguay

Colvin & Co. — Fri, 25 May 2012 10:30:00 GMT

This picture of a sunset was submitted from a farm in southwest Uruguay. Agriculture makes up 8% of Uruguay's GDP and 70% of its total exports. Uruguay has a large livestock sector and corn is Uruguay's principal feed crop. The leading crops for human consumption include rice, wheat, and sugarcane. Remember, we are always looking for agricultural pictures from anywhere in the world. Submit pictures to farmlandforecast@colvin-co.com ...

Heat, Dryness Create Uncertainty for Iowa Corn Crop

Colvin & Co. — Thu, 24 May 2012 10:30:00 GMT

(DTN) Judging by the first condition ratings of the season, Iowa's corn crop has a bright and bountiful future. Eighty-one percent of the crop was rated "good" to "excellent" as of Sunday, May 20, according to USDA's latest weekly Crop Progress report. That lofty figure compares favorably to the initial corn ratings in 2004 (70% good to excellent) and 2009 (79% good to excellent), when U.S. corn yields reached record levels.

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Early Planting is Driving the Rural Economy

Colvin & Co. — Wed, 23 May 2012 10:30:00 GMT

The Rural Mainstreet Index (RMI) increased slightly this month as bankers are optimistic about the agriculture environment with historically early planting and above average crop conditions. The farmland price index declined in May, indicating slower growth in values, but remained above growth neutral for the 28th consecutive month.

The Rural Mainstreet Index increased to 58.5, a slight increase from the 57.1 in April. month. This marks the ninth straight month the ...

Farmland Values Increase 25% in Second Consecutive Year

Colvin & Co. — Tue, 22 May 2012 10:30:00 GMT

Farmland values increased by over 20% for the second straight year in the Tenth District of the Federal Reserve Bank of Kansas City. Easing drought conditions in the Tenth District and crop prices that increased in the fourth quarter of 2011 lead to increased farmer income which was in turn reinvested in farmland thus driving demand for farmland and prices higher.

Non-irrigated cropland increased by 8.0% in value throughout the first ...

Crop Progress: Corn Condition Well Above Average

Colvin & Co. — Mon, 21 May 2012 21:04:20 GMT

This afternoon, the USDA released its weekly crop progress report indicating all three crops, corn, soybeans, and wheat are in above average condition due to favorable weather across the Corn Belt.

As of May 21, 2012, the 18 primary corn producing states have planted 96% of the U.S. corn crop, compared to 75% one year prior. A total of 76% of the U.S. corn crop has already emerged compared to 38% from a year ago. Corn conditions ...

Corn Belt Farmland Values Continue to Rise

Colvin & Co. — Mon, 21 May 2012 12:09:54 GMT

Farmland values rose 19% over the last twelve months as farmers continued to purchase land to capitalize on high grain prices, according the Federal Reserve Bank of Chicago. The value of "good" farmland increased 5% in the first quarter of 2012 compared to the fourth quarter of 2011. All District states posted year-over-year increases in farmland values and the largest year-over-year land value increases came from some of the largest producers of corn and soybeans in Illinois ...

Picture of the Week: Corn is King

Colvin & Co. — Fri, 18 May 2012 10:30:00 GMT

This week's picture of the week comes from Mitchell County, South Dakota where there stands the world's only Corn Palace. The Corn Palace is a staple of South Dakota and has been in existence since 1892. Early settlers, in order to prove the fertility of South Dakota soil, would adorn the exterior of the Corn Palace with the fruits of their harvest. Currently, the exterior decorations are stripped down each year and new murals are created. Remember, we are always looking for agricultural pictures from anywhere in the world. Submit pictures to farmlandforecast@colvin-co.com. This picture was submitted by Alison ...

TIAA-CREF Announces $2 Billion Global Agriculture Company

Colvin & Co. — Thu, 17 May 2012 14:43:03 GMT

(AgriMarketing) TIAA-CREF, New York, NY, a leading financial services provider, today announced the close of TIAA-CREF Global Agriculture LLC.

The new company comprises several international institutional investors and has $2 billion in commitments to invest in farmland in the United States, Australia and Brazil.

The company began investing capital in April 2011 and includes AP2, British Columbia Investment Management Corporation (bcIMC), the Caisse de dépôt et placement du Québec (Caisse) and other like-minded institutions. TIAA has ...

Study: Ethanol Decreased Wholesale Gas Prices by $1.09 Per Gallon in 2011

Colvin & Co. — Wed, 16 May 2012 17:10:28 GMT

(DTN) U.S. farmers supplying corn to the ethanol industry are helping consumers keep money in their pockets at the pump, according to a study released Tuesday by the Center for Agricultural and Rural Development at Iowa State University.

The production of ethanol in the United States reduced wholesale gasoline prices by an average of $1.09 per gallon in 2011. The research, authored by Professors Dermot Hayes and Xiadong Du, is an update of a 2009 report from ...

Bernanke Island

Colvin & Co. — Tue, 15 May 2012 10:30:00 GMT

(GallatinRiverCapital) At the end of February 2012, the Federal Reserve (Fed) held $1.66 Trillion of U.S. Treasury Securities (1). At the end of the same period, the top three foreign holders of U.S. Treasuries were China, Japan, and Brazil with holdings of $1.2 Trillion, $1.1 Trillion and $225 Billion, respectively (2). This makes the Fed the largest holder of U.S. Treasury Securities. How did the Fed become the largest holder?

In late 2008, after the financial crisis took center ...

Corn, Soybean Progress Continues Well Ahead of Average

Colvin & Co. — Mon, 14 May 2012 21:19:26 GMT

(DTN) Crop progress continues to gallop along, well ahead of last year and the five-year average, according to USDA's weekly report.

Corn is 87% planted and 56% emerged, compared to 56% and 16% last year and 66% and 28% averages, respectively. The planting figure was in line with pre-report expectations, according to DTN Analyst John Sanow.

"The big five Illinois (95% vs. 65%), Indiana (93% vs. 53%), Iowa (90% vs. 79%), Minnesota (88% vs. 70%) and Nebraska (91% ...

Protectionism in Argentina Threatens Foreign Investment

Colvin & Co. — Mon, 14 May 2012 10:30:00 GMT

Foreign investors looking to invest in the fertile farmland of Argentina will be significantly limited by the Rural Land Law, passed in late 2011 by the Argentine Government. Argentina is concerned over the growing amount of foreign ownership of their natural resources. Nearly 7.0% of Argentina's arable land is owned by foreigners, according to the Agrarian Federation of Argentina. The Argentine Government will now track ownership of its natural resources and limit further expansion of foreign ownership ...

Picture of the Week: New Investment Book on Farmland

Colvin & Co. — Fri, 11 May 2012 10:25:00 GMT

This week, Colvin & Co.'s Greyson S. Colvin and T. Marc Schober released their investment book focused on farmland. The Investors' Guide to Farmland will help readers grasp an understanding of farmland, farming basics, rationale for investment, and an outlook on the future of the investment class. The Investor’s Guide to Farmland can be purchased on CreateSpace (www.createspace.com/3861185), Amazon.com, and other fine retailers. Remember, we are always looking for agricultural pictures from anywhere in the world. Submit pictures to farmlandforecast@colvin-co.com. ...

WASDE: Corn Stocks Surprise to the Upside

Colvin & Co. — Thu, 10 May 2012 19:22:27 GMT

The USDA continued their streak of surprises by increasing ending corn stocks for 2011/12, despite analysts projecting a reduction in domestic corn supplies. The May WASDE also produced the first official projections for 2012/13, with a record high corn yield of 166 bushels. Domestic soybean stocks continue to dwindle as the usage ratio will be at a historically low rate due to increased U.S. exports and decreased South American production.

Corn ...

Colvin & Schober’s Guide to Investment in Farmland

Colvin & Co. — Thu, 10 May 2012 10:27:00 GMT

Greyson Colvin and Marc Schober both grew up in the Midwest with farming in their families. Using their expertise in agriculture, Colvin & Schober were pioneers in the farmland investment industry. Now the two are putting their knowledge into the Investors’ Guide to Farmland, the handbook to educate investors about the investment opportunities in US farmland.

Everyone has to eat to survive. The production of almost all food can be traced back to farmland in ...

Iowa Cash Rents Up 18% Over Prior Year

Colvin & Co. — Wed, 09 May 2012 10:30:00 GMT

(AgriMarketing) Anyone who is involved with the rental market for Iowa farmland knows that rental rates have been pushed significantly higher by the favorable corn and soybean prices that farmers have enjoyed since 2010. This trend continued in 2012.

Results from the most recent Iowa State University Extension and Outreach rental rate survey estimated the 2012 average cash rent for Iowa corn and soybean land at $252 per acre, an increase of $38 per acre or 18 ...

U.S. Soybeans to Brazil: Will the Market Care?

Colvin & Co. — Tue, 08 May 2012 10:30:00 GMT

(Agriculture.com) Brazil hasn't bought U.S. soybeans on the export market for a long time. But, that's just what's likely to happen in the coming weeks and possibly months. So, will the market take note, or have traders seen this coming long enough to already factor it in to the U.S. soybean market?

In an Agriculture.com exclusive report early Friday, Brazilian reporter Luis Vieira showed as much as 80% of the nation's drought-shortened crop is already forward-contracted, about 20% ...

Crop Progress: Majority of U.S. Corn in the Ground

Colvin & Co. — Mon, 07 May 2012 20:59:10 GMT

This afternoon, the USDA released its weekly crop progress report indicating almost three-fourths of the U.S. corn crop has been planted.

As of May 7, 2012, the 18 primary corn producing states have planted 71% of the U.S. corn crop, compared to 32% one year prior. 17 of the 18 states have planted more than their five-year historical average. A total of 32% of the U.S. corn crop has already emerged compared to 6% from a year ago.

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Argentina Soybeans Suffer as Drought Cuts Crop by at Least 15%

Colvin & Co. — Mon, 07 May 2012 10:30:00 GMT

(DTN) For the second straight year, the La Nina weather phenomenon brought drought to Argentina's principle soybean-growing regions in 2011-12.

But whereas late January rains earned last year's crop a late reprieve, this year's drought wasn't broken until February, parching beans during the key flowering period across the Pampas.

And so, with approximately 60% of the crop harvested, most see output at least 15% down on initial expectations.

The eventual crop size remains ...

Video of the Week: Jim Rogers on Agriculture

Colvin & Co. — Fri, 04 May 2012 10:30:00 GMT

(FinancialTimes) US billionaire investor Jim Rogers tells Michael Mackenzie, the FT's US markets editor, that the US faces a painful slowdown in 2013. He also suggests the top of the commodities boom has yet to be reached and that agriculture is the most interesting commodities sector. Remember, we are always looking for agricultural pictures from anywhere in the world. Submit pictures to farmlandforecast@colvin-co.com. ...