Welcome to the updates section of Stalcup Agricultural Service. Feel free to look around and find out some of the interesting things happening in our area |
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Below you will find our latest newsletter, along with some past issues for reading. Also you may follow the links to the left for the latest weather, news, and headlines.
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Fall 2009:
A number of factors go into making a
profitable farm operation. Improved
seed genetics have increased yields
over time. Improvements in the land
itself and how it is operated also play
an important part. When these
factors are put together, it is gratifying
to both owner and manager to see
successful results.
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Summer 2009:
It is that
time of
year to start
thinking
about what
changes
you want
to make to
your current
lease. Iowa’s lease termination
deadline is September 1st. Now
is the time to review your current
arrangement to make sure you are
getting the return you deserve for
your farmland asset. Cash rents have
increased significantly the past four
years. Depending when you last
negotiated your cash rent terms, you
may be entitled to an increase.
The high grain prices of summer
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Spring 2009:
The last six months have been a reminder
that the agricultural economy
is still tied to the health of the U.S.
and global economy. After a very
good run of grain prices stretching
back to the fall of 2006 and peaking in
July of 2008, we have seen significant
drops as the worst recession since the
1930’s has affected virtually all areas
of the economy. Not all the news is
bad, however. Oil prices have begun
to stabilize, which bodes well for our
bio-fuels industry. There are a few
small signs of an economic recovery.
As the federal stimulus money begins
to flow, inflation may increase which
will support commodity prices.
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Fall 2008:
As of this writing (October 13th), land sales in our trade area have held up well despite the world-wide decomposition of equity markets over the past month that have brought commodities along for the downhill ride. Since this is typically the busiest time of year for land auctions, the farmland market is being tested several times in the region on most days. There will be variations from area to area, as always. Low quality farms would be the first affected by any decline in value.
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Summer 2008:
Those owners willing to participate in
crop production have been rewarded
with high grain prices. Returns from
custom farming have been the highest
of any operating alternative each of
the last twenty-five years. Even in
poor production years, returns have
exceeded those of 50-50 crop share
and average cash rent.
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Spring 2008:
The market for farmland in Iowa (and the U.S. in general) continues upward at a strong pace. Recent land value surveys give an indication of the magnitude of the upswing; however, the real evidence is the land auction results that have occurred over the past six months. As corn has moved up by nearly
$2.00 per bushel and beans by nearly $4.00 per bushel since early last fall, so has the land market stepped up
the pace...
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Fall 2007:
There is no doubt that the biggest news in agriculture over
the last few years has been the rapid increase in ethanol
production. Revolutionary might not be too strong of a word
for the changes we have witnessed - a rapid run-up first in
corn prices followed by wheat and soybeans, the largest
acreage planted to corn since World War II, and an increase
in land prices and rental rates fueled by improved earnings.
Summer 2007:
The sizeable increase in corn and soybean prices since last
fall will have a substantial impact on 2008 lease terms.
Landowners should analyze their current lease terms or new
operating alternatives to be sure they realize the full
advantage of this dramatic increase in income. Below are
brief descriptions of various lease types to review as you
consider alternatives to meet your goals:
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Spring 2007:
The rapid rise of corn and soybean prices with about a $2.00 per bushel increase in both corn and soybeans since the beginning of the 2006 harvest season will have a substantial impact on lease terms. Per acre gross income will likely increase $200 or more per acre on a farm rotated between corn and soybeans when compared to the last few years.
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