As we look forward to spring, we can’t help but wonder what Mother Nature will have in store for us this year. No one wants to see a repeat of last spring, or the spring of 2018 for that matter. Delayed planting, flooding, and cool temps have been the theme in recent years. Last spring featured historically late planting in more than half the Corn Belt as well as a record 19.4 million acres not planted. Crops remained behind schedule all season which delayed harvest. As of January, the USDA reported 8% of corn and 2% of soybeans still need to be harvested (mostly in North Dakota). Reduced yields, poor grain quality, soil compaction, and nutrient loss are some of the issues that all started with poor spring weather conditions.
The land market this winter has been steady to slightly stronger on good land. Lower-quality land continues to find buyers but at comparatively lower values. We’re not just talking about a lower value per acre. There is also a lower value per productivity index. In Iowa, we go by Corn Suitability Rating, now in its second iteration called CSR-2. CSR-2 has officially been public since February 2014. It is a pretty easy task to divide sale price by CSR or CSR-2 to arrive at a factor. This can be used as a quick and easy guide to value; however, there are many other factors at play. First of all, how many of those acres are tillable? We prefer to divide total sale price by crop acres (assuming little or no non-cropland value is present) then divide by CSR-2. At least that starts comparing apples to apples. If there are improvements or non-cropland which add value, that must be factored out as well.
After nearly two years of trade stress in the ag community, early January was a chance to breathe a quick sigh of relief. China and the United States reached a Phase I trade agreement that will obligate China to buy substantial amounts of agricultural products totaling 80 billion over the next 2 years, 36.5 billion in 2020 and 43.5 billion in 2021. If carried through, this will be a substantial increase over the previous high total of 24 billion in 2017 on an annual basis. Details are murky. There are no specific quantities of any products detailed so the market is left to see how purchases unfold. For Corn Belt agriculture, soybeans and pork are expected to be the biggest benefactors, with possibly ethanol and distillers dried grains (a by-product of ethanol production) also seeing some increased business
Recently retired Stalcup Ag Service farm manager, Rex Wilcox, received the D. Howard Doane Award at the national meeting of the American Society of Farm Managers and Rural Appraisers (ASFMRA) held November 16-22, 2019 in Louisville, Kentucky. This award is given to an individual who has made an outstanding contribution in the field of agriculture with emphasis on farm management or rural appraisal.
Stalcup Ag Service appraiser, Travis Nissen, earned the designation of Accredited Rural Appraiser (ARA) at the annual meeting of the American Society of Farm Managers and Rural Appraisers (ASFMRA) held November 16-22, 2019 in Louisville, Kentucky. Requirements to attain the Accredited Rural Appraiser (ARA) designation through ASFMRA.