Today's Land Owner

Spring 2017 Volume: XXXVII No 1

Stalcup Ag Service, Inc. 75 Years of Growing

Rex Wilcox, AFM
ARTICLE SUMMARY:
Stalcup Ag Service is celebrating 75 years of growth and leadership in the farm management, rural appraisal, and farm real estate industry. We have split the company history into three 25-year segments, the first here and the other two in subsequent newsletters. e origin of the company was in the Great Depression of the thirties. Henry (Buck) Stalcup, the founder of the company was born and raised in Indiana, graduated from Purdue, taught vocational agriculture for 10 years, then took a job as a farm agent for Connecticut Mutual Life Insurance Co. of Peoria, Illinoi

Today's Land Market

Dennis Reyman, AFM, ARA
ARTICLE SUMMARY:
Followers of land market reports may be getting a bit confused lately. While numerous surveys have come out reporting lower values, we and others in the business have been delivering a message somewhat at odds with most surveys. First, let’s review the surveys which are widely reported in regional press.

Grain Market: 2016 Yields – 2017 Outlook

Nathan Deters, AFM
ARTICLE SUMMARY:
2016 crops set new records with a national corn yield of 174.6 bushels per acre and soybeans at 52.1 bushels per acre, which exceeded the 2015 record set just last year by an amazing 10%. For the fourth year in a row, good weather over most of the Corn Belt allowed crops to express their genetic potential. Th¬e result is crop carryover numbers at the high end of the range since the start of what we call the “Ethanol Era” in 2006/2007 (see chart below). ¬The prospect of these big yields took corn prices to a ten year low before the start of harvest. Since then corn prices have moved 60 cents higher per bushel and soybeans have moved 75 cents per bushel higher. Considering the big supplies we are dealing with, this has been an encouraging, if somewhat unexpected development. A question could be asked, “Why this price strength?” Th¬e main reason is the old adage that low prices cure low prices. Demand has ramped up. Exports of both corn and soybeans are exceeding expectations. Corn usage by ethanol plants is staying very strong. Ethanol plant profitability is helped out by higher prices of competing crude oil. Cattle, hog, and poultry numbers are all up, and feed demand is excellent. To put another perspective on the positive demand news, corn usage is projected at 14.6 billion bushels this year. There has only been one year (2016) when total production was that high.

Update on Des Moines Water Works Lawsuit

Kent Smith, AFM
ARTICLE SUMMARY:
A year ago in our spring newsletter we provided information on the Des Moines Water Works lawsuit. At that time, the federal judge in Sioux City sent four points of the lawsuit to the Iowa Supreme Court. Des Moines Water Works claimed three drainage districts allowed excessive nitrates to move from farm fields into the Raccoon River, which is the main source of Des Moines drinking water. On January 27, 2017, the Iowa Supreme Court ruled against Des Moines Water Works in its attempt to pursue damage payments from drainage districts in Calhoun, Buena Vista and Sac Counties in northwest Iowa.

You’re Invited to our 75th Anniversary Reception

ARTICLE SUMMARY:
Stalcup Ag Service Inc., is celebrating our 75th year in business. We are hosting a reception on Wednesday, June 21, 2017 at Kings Pointe Resort in Storm Lake, Iowa. Our clients, friends, business associates and community members are invited for hors d’oeuvres and refreshments from 5 until 7 p.m. Please come join us in celebrating this milestone.

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