Farmland Forecast

Picture of the Week: Southern Minnesota Heartland

Colvin & Co. — Fri, 03 Feb 2012 10:30:00 GMT

This picture comes from Freeborn County in Southern Minnesota. This part of Minnesota has some of the most fertile land in the country. A corn and soybean rotation is the choice of most farmers in this region due to the positive economics associated with these crops. Remember, we are always looking for agricultural pictures from anywhere in the world. Submit pictures to farmlandforecast@colvin-co.com. ...

Wheat Organizations Want an Open Border for U.S. and Canadian Farmers

Colvin & Co. — Thu, 02 Feb 2012 10:30:00 GMT

(AgriMarketing) Signaling a desire for more market efficiency, the boards of directors of the National Association of Wheat Growers (NAWG) and U.S. Wheat Associates (USW) each passed a resolution on Jan. 29 calling for an open border with Canada that provides reciprocal bilateral wheat trade.

Under a December 2011 law, which still faces some legal challenges, the Canadian Wheat Board (CWB) will lose its grain marketing monopoly Aug. 1, allowing western Canadian farmers to sell their wheat ...

Grain Markets Volatile Per USDA Report

Colvin & Co. — Wed, 01 Feb 2012 10:30:00 GMT

U.S. grain markets began 2012 on a strong note, but the January USDA WASDE Report quickly brought volatility back to the markets. La Niña has continued to cause problems for South American farmers with expected yields decreasing by the month and providing support to the global grain market. A strengthening U.S. dollar has slowed the grain rally in late January alongside renewed European debt concern.

Grain Prices

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U.S. Cattle Inventory Drops to Lowest Since 1952 on Drought

Colvin & Co. — Tue, 31 Jan 2012 10:30:00 GMT

(Bloomberg) U.S. cattle inventories fell to the lowest in 60 years after a drought in the South scorched pastures, prompting ranchers to shrink herds.

As of Jan. 1, beef and dairy farmers held 90.77 million head of cattle, down 2.1 percent from a year earlier, the U.S. Department of Agriculture said today in a report. That’s the fewest since 1952. Ten analysts in a Bloomberg News survey were expecting a 1.5 percent decline.

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Farmers Retire Debt

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

(DTN) Like the lonely Maytag repairman, rural bankers are finding it's hard to peddle loans when farmers are flush with cash.

A typical 1,200-acre Illinois farmer likely earned a healthy net farm income of $200,000 in 2011, representative of much of the Corn Belt. Those banner farm incomes helped operators reduce short-term loan volumes by 40% last year, according to a Kansas City Federal Reserve report released Wednesday.

"We've been hearing anecdotally since last summer that when farmers ...

Picture of the Week: Sunset in North Dakota

Colvin & Co. — Fri, 27 Jan 2012 10:30:00 GMT

This picture shows a parcel of farmland in Cass County, North Dakota. It is a productive and flat piece of the American heartland that grows corn and soybeans. The black strip running through the middle is called a draw. The draw is designed to carry water off the land to prevent flooding. The draws lead the water to ditches, where it then flows into a larger water source, in this case the Red River. Remember, we are always looking for agricultural pictures from anywhere in the world. Submit pictures to farmlandforecast@colvin-co.com. ...

Farmland Real Estate on Hold

Colvin & Co. — Thu, 26 Jan 2012 10:30:00 GMT

(DTN) Farmland owners were told to expect 2012 to be a "year of paralysis" in the general economy when economists addressed the Land Investment Expo here last week. But contrary to popular belief, that might not be so bad for farmland sellers and owners.

"I think agricultural land will do better if we don't have an economic recovery," said Mark Dotzour, chief economist with the Real Estate Center at Texas A&M University.

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French Corn Farmers Plant Earlier, Lift Yields as Climate Warms

Colvin & Co. — Wed, 25 Jan 2012 13:17:32 GMT

(Bloomberg) Corn farmers in France, the European Union’s largest producer, are planting their crop earlier compared with a decade ago as climate change causes higher temperatures, boosting yields, researchers and growers said.

Corn planting has advanced by about a month, giving crops more time to grow and develop, Jacques Mathieu, head of crop researcher Arvalis Institut du Vegetal, said in an interview this week in Dijon in eastern France.

Average French ...

Farmland Returns Jump in Q4 2011

Colvin & Co. — Tue, 24 Jan 2012 10:30:00 GMT

(NCREIF) The National Council of Real Estate Investment Fiduciaries has released fourth quarter 2011 results of the NCREIF Farmland Index. The total return for the fourth quarter was 8.70%, comprised of 5.11% appreciation and 3.58% income return. This is an improvement from last quarter’s 1.97% total return and last year’s fourth quarter return of 5.79%. Historically, the fourth quarter has been the strongest due to high income returns from the conclusion of the sale of the crops. ...

Rural Mainstreet Index Reaches Five Year High

Colvin & Co. — Mon, 23 Jan 2012 10:30:00 GMT

The rural economy continued to move forward this month, reaching its highest level since June of 2007. The farmland price index fell to a still growth positive reading after reaching a record high level in December 2011.

The Rural Mainstreet Index (RMI) advanced to 59.8 from 59.7 to remain growth positive for the fifth straight month and above the 59.3 it posted 12 months prior. The growth is largely due to the areas of the country tied ...

Video of the Week: 178 Pounds Lighter in MN

Colvin & Co. — Fri, 20 Jan 2012 10:34:00 GMT

This video features Colvin & Co.'s Marc Schober interviewed on FOX 9 out of Minneapolis, MN. Marc lost 178 pounds over 18 months after changing his diet and workout regimen. The keys to loosing such a large amount of weight were eating more vegetables and working out five days per week for Marc. Remember, we are always looking for agricultural pictures from anywhere in the world. Submit pictures tofarmlandforecast@colvin-co.com. ...

South Africa Corn Export Push May Exhaust Stocks

Colvin & Co. — Thu, 19 Jan 2012 10:30:00 GMT

(Bloomberg) A government-backed plan to export a record corn surplus may leave South African silos drained of the country’s staple food by the end of April.

The price of white corn, used to make the corn meal eaten by many South Africans, has risen to a record in Johannesburg and the nation is importing the yellow variety of the grain for the first time in two years. Millers, chicken producers and cattle breeders are facing a surge in ...

Another Big Month for Meat Exports, Thanks to Japan

Colvin & Co. — Wed, 18 Jan 2012 10:30:00 GMT

(Brownfield) November was another huge month for U.S. pork and beef exports.

U.S. pork exports set another monthly volume record in November—and for the first eleven months of 2011, pork export volume was up 18 percent and pork export value up 27 percent over 2010.

U.S. Meat Export Federation communications director Joe Schuele says one of the highlights on the pork export side is what he describes as “a continued remarkable performance by Japan, which has nearly matched its ...

Pricing the Good Earth

Colvin & Co. — Tue, 17 Jan 2012 10:31:00 GMT

(Barron's) In the rush for hard assets over the past few years, some investors have planted farmland in their portfolios hoping to harvest nice gains.

On paper, at least, they have. U.S. land values are rising on strong prices for agricultural products, fueled to a great extent by robust exports to emerging nations. Advocates for owning farmland include big-name investors like Marc Faber and Michael Burry. But skeptics wonder whether the boom is setting up investors ...

A First-Hand Argentina Drought Story

Colvin & Co. — Mon, 16 Jan 2012 10:30:00 GMT

(DTN) Drought has decimated crops for Lee Trimmer, an American who farms in General Villegas in the province of Buenos Aires (five hours west of the city). His farms corn and soybeans over a 120 mile area, but says it’s too late to rescue the corn crop no matter what now. He hasn’t received rain since Nov. 20-25; corn is past silking and produced no ears. He has mowed down corn crop and may reseed with bin-run ...

Picture of the Week: January Soybeans in Uruguay

Colvin & Co. — Fri, 13 Jan 2012 10:30:00 GMT

This submitted picture shows soybeans in the South American country of Uruguay. Uruguay's major crops include rice, wheat, barley, corn, sorghum, and sunflower. Due to the recent hot and dry weather conditions of La Niña, crops in South America have experienced stress during their growth. Remember, we are always looking for agricultural pictures from anywhere in the world. Submit pictures to farmlandforecast@colvin-co.com. ...

WASDE: USDA Starts Year Off With a Surprise

Colvin & Co. — Thu, 12 Jan 2012 20:38:42 GMT

The USDA caught the grain market by surprise this morning, resulting in corn and wheat prices plummeting. Analysts were expecting the USDA to reduce ending corn stocks by 100 million bushels due to lower than expected yields, but the USDA actually increased corn yields and production, leaving stocks roughly unchanged.

Corn

Unexpected and bearish news from the USDA as U.S. corn production is estimated 48 million bushels higher with a 0.5 bushel increase in ...

A Developed Appetite for Developed Debt

Colvin & Co. — Thu, 12 Jan 2012 10:30:00 GMT

(GallatinRiverCapital) A rather embarrassing hunting story comes from my college years in Montana. I was elk hunting one late afternoon when an unexpected storm blew in. I was not dressed for the inclement weather so I decided to head for the truck. As I traversed up and down foothills and valleys, I found myself turned around and ended up circling back to my starting point. For a moment it was a little frightening and a sense of urgency ...

Office Closures Part of Plan to Streamline USDA Operations

Colvin & Co. — Wed, 11 Jan 2012 10:30:00 GMT

(DTN) Agriculture Secretary Tom Vilsack used the American Farm Bureau Federation annual meeting as a backdrop to announce $150 million in office cuts and consolidation under the guise of USDA's "Blueprint for Stronger Service."

Vilsack told farmers the office cuts were a necessary response to more than $3 billion in cuts to USDA's discretionary budget by Congress since 2010.

"Over the course of the last year or so we have obviously been ...

Farmland boom alters 40-year Iowa corn yield model

Colvin & Co. — Tue, 10 Jan 2012 10:36:00 GMT

(Reuters) - In response to surging Midwest farmland prices, researchers in Iowa are overhauling a decades-old formula used to predict corn yields, which will allow farmers and tax officials to more accurately value property.

The corn suitability rating, or CSR, has long been a Midwestern benchmark to forecast how productive an Iowa farm will be if corn is planted on it.

Since 1971, CSR has been used to set cash-rent rates, help ...