Today's Land Owner

Summer 2023 Volume XLV No 2

Today's Land Market

Dennis Reyman, AFM, ARA
ARTICLE SUMMARY:
Summer is the beginning of a new “season” in the land market. Normally the second quarter is quiet for land sales. Historically, only about 10% of the land auction activity would occur during the 2nd quarter. However, that paradigm appears to have shifted. In 2022, nearly 25% of the sale volume occurred in the 2nd quarter and for good reason – land values were shooting higher. 2nd quarter 2023 volume approached the acreage total from last year. 1st quarter 2023 had the highest acres sold in any 1st quarter in at least a decade. In fact, our database shows the past 2½ years have seen more acres sold than the previous five years.

Is Tillage a Thing of the Past?

Chad Husman, AFM
ARTICLE SUMMARY:
John Deere transformed farming with his first steel plow in 1837. Deere’s moldboard plow design was a massive improvement over previous tools for cutting and turning the prairie soil. Plowing was necessary in those days to eliminate the weeds and native plants competing for space, water, sunlight, and nutrients. This set the stage for many modern farming advancements that followed. John Deere just recently ended production of the moldboard plow in February 2023 – marking the end of an era. There are still many plows around in the country, but over the past 50 years they transitioned from wide scale use in to more of a specialty tool. Plows are too aggressive for modern farming practices today. They completely turn over the soil leaving it vulnerable to water or wind erosion without plant residue or roots to anchor the soil. The Dust Bowl of the 1930’s was a lesson in what can happen from wide scale plowing during a major drought. Conservation and tillage practices have been evolving ever since

Crop Progress Report

Nathan Deters, AFM
ARTICLE SUMMARY:
As we reach the midpoint of the 2023 growing season, crop conditions in the area are generally good, with a few exceptions. Looking back, most corn planting was finished within the first 10 days of May, under good soil conditions. The corn emerged quickly, and stands were generally good. A fair amount of soybeans were planted during this time as well. A heavy rain event on May 12th and 13th over the eastern 2/3 of the area brought welcome moisture to recharge soil levels but also caused some ponding and soil compaction. This became an issue for emergence on soybeans planted within a couple of days of this event, and numerous fields throughout the area needed supplemental or full replanting. Soybean planting was largely finished by the 3rd week of May. The month of June has been warmer and drier than normal, although not excessively so. Most days have been in the upper 80’s, but we have not reached 90 degrees for any length of time. Rains, while less than normal, have been very well timed. South Dakota has been more fortunate with rains, with good amounts at the end of June pushing them ahead of normal for the month.

What's Trending? Yields!

Dennis Reyman AFM, ARA
ARTICLE SUMMARY:
“What’s trending” is a common phrase these days. Of course, trends can be found in most everything. In agriculture, the trend of crop yields has a major influence on crop prices and ultimately in the value of farmland. Since the advent and adoption of hybrid seed corn in the 1930’s and ‘40’s, corn yields have trended higher with an average gain of 2% per year. How does this really translate into local crop yields? Looking at Woodbury County, we found the average yield from 1926-1933 was 34 bushels per acre. Jumping ahead to 1963-1970, corn averaged 71 bushels per acre. The most recent 8 years averaged 205 bushels per acre. This can be measured several ways but around 2% per year is the accepted average.

Renewable Diesel and Biodiesel, What is the Difference?

Grant Aschinger AFM
ARTICLE SUMMARY:
Sustainability is everywhere. Many large companies are touting their goals to be carbon neutral and use sustainable production practices. As much as Elon Musk may not like it, diesel engines are still going to be with us for some time. So what can we do to improve the sustainability and lower the carbon footprint of our trucks, buses, railroads, and farm/construction equipment? Soybeans and soybean oil may play a large role in that answer. Renewable diesel is not the same as biodiesel, although they do share some of the same feedstocks. Biodiesel can only be blended with petroleum-based diesel up to a 20% rate according to the Energy Information Administration. Renewable diesel can be blended with petroleum-based diesel at any level, giving it more flexibility and potential upside when it comes to demand.

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