Today's Land Owner

Spring 2013 Volume XXXIII No. 1

2013 Outlook

Spring 2013 Volume XXXIII No. 1
ARTICLE SUMMARY:
Making grain market predictions is an inexact science at this time of year. One needs no further reminder than a look back to last spring when sub $5 per bushel corn at harvest seemed likely. It’s amazing what the worst drought in 25 years can do to predictions. The drought of 2012 had repercussions we are still dealing with and will be for a while yet

Today's Land Market

Dennis Reyman, AFM, ARA
ARTICLE SUMMARY:
Late 2012 saw the largest flurry of farm real estate activity in recent memory. Nearly 450 parcels were logged into our database of public auction results for NW Iowa in 2013. Almost 60% of that activity occurred during the last four months. The prospect of tax law changes coupled with record high land prices caused many owners to pull the trigger on selling land. See the adjacent article for more on tax code changes. It is amazing that with the increased amount of land on the market, it continues to be absorbed at increasing prices. The transactions in our database exceeded $230 million for September-December. Over half the sales exceeded $10,000 per acre. Many were in the $13,000 to $16,000 range, and a few in the right areas were $20,000 or close to that.

Tax Code Changes Affecting Real Estate

Terry Argotsinger, AFM, ARA
ARTICLE SUMMARY:
As noted in Today’s Land Market, a good share of the real estate activity in 2012, especially late in the year, was induced by concern over anticipated changes to the tax code as part of the “fiscal cliff”

Crop Insurance For 2013

Chad Husman
ARTICLE SUMMARY:
Choosing the correct multiperil insurance policy is always an important aspect of risk management. Most operators choose a Revenue Protection policy which guarantees a set level of revenue per acre for each crop. These levels vary by farm and are determined by historical yields, new crop price levels set in the month of February, and each producer’s risk tolerance. Most choose to insure between 75 and 85% of historical yields. This year’s insurance price levels are $5.65 per bushel for corn and $12.87 per bushel for soybeans. The fall price option allows for higher prices if October averages more than spring prices. This was the case in 2012 and made a big difference to those who collected.

Entering an Auction with a Plan

Reprinted from Wallaces Farmers
ARTICLE SUMMARY:
Following is an article which appeared in the December 2012 edition of Wallaces Farmer magazine. It was written by L.S. Leonard who attended the Crowl auction held in Holstein on October 19th. The auction was listed, conducted, and closed by Stalcup Ag. Service. Here is the article, reprinted with permission of the magazine and the author: A new record was set for farmland sold at auction in Ida County this fall when Dan Kluver and uncle Don Kluver bought 152 acres at $13,200 per acre. The parcel fit well with their turkey and grain operation near Galva

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