It may sound like an old story, but the land market continues to work its way higher despite having a LOT of land on the market. Our database now contains nearly 400 sales scheduled so far this year compared to about 325 for all of last year and about 180 for all of 2010. These are mainly advertised public auctions and include few private transactions. The same method of capturing sales data has been used throughout these years.
The 2008 farm program expired September 30th. Congress left town by the middle of the month, not to resume business until after the election. Having a farm program expire before a new one is enacted is not unusual; in fact, it has happened that way more often than not in recent decades. Generally, a short-term extension has been signed into law and the existing farm bill continues on until a new one is passed. No extension has been signed at this time
Numerous tax provisions will expire December 31, 2012, and return to tax provisions in place prior to 2001 with some exceptions. 47 tax code sections identified by the Center for Agricultural Law and Taxation at Iowa State University are affected.
Hot, dry weather and fast-paced crop development allowed harvest to begin in late August and was largely completed by mid-October in Northwest Iowa, at least three weeks ahead of normal. Growing degree units (aka heat units) accumulated quickly all year, putting crop development well ahead of normal. Both corn and beans dried rapidly in the field, nearly eliminating drying costs. Corn harvested below 15% moisture and beans below 13% cost producers money since the full complement of allowable water weight is not delivered to the market. Many corn fields came out at 12-14% and beans at 7-8% as harvest wrapped up. Hot windy days with low humidity dry crops faster than they can be harvested.