tag:blogger.com,1999:blog-43558890506884993572024-03-13T09:57:37.424-05:00Noah Hultgren, The Farmland Man www.farmlandman.comNoah Hultgren, The Farmland Manhttp://www.blogger.com/profile/15005597825814261930noreply@blogger.comBlogger80125tag:blogger.com,1999:blog-4355889050688499357.post-32149776551852045572016-11-22T10:12:00.000-06:002016-11-22T10:14:05.969-06:00An eventful year: My term as president of the Minnesota Corn Growers AssociationI was privileged to be interviewed by Jonathan Knutson of Agweek, with <a href="http://www.wctrib.com/news/local/4164261-eventful-year-young-blood-minnesota-corn-growers-group" target="_blank">this article</a> posted on November 21, 2016:<br />
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WILLMAR, Minn. — Corn is a big part of Noah Hultgren's life. Always has been, always will be. But the crop was particularly important to him this past year, when the Willmar, Minn., farmer served as president of the Minnesota Corn Growers Association.<br />
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"I never kept track of how much time I spent on it. But almost every day it seemed there was something to do, answering calls or emails or going to meetings. In the winter (of 2015 to '16), it seemed almost like a full-time job," he says.<br />
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Part of the one-year job was helping to develop a recently released plan to assist "Minnesota corn growers become the most sustainable and economically responsible in the United States," as the Corn Growers Association puts it. The group has about $250,000 in grants available to help farmers improve their organizations; a committee will evaluate applications.<br />
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Another part of the president's job, Hultgren says with a rueful smile, was fielding phone calls from farmers "who wanted to know what I was doing to raise the price of corn." His response: "If I had that power, I'd be a lot richer and I'd have a higher position elsewhere in the world."<br />
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Were the callers serious or teasing? "A little bit of both," Hultgren says.<br />
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In some ways, the fourth-generation farmer is typical of Upper Midwest agriculture. He operates with his father, Duane, and older brother, Nate — a multi-generational, multi-family-member arrangement so common in area ag.<br />
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And Noah Hultgren's part-time job — he's a licensed real estate salesman, who now deals primarily with ag property — also is a familiar part of the area ag scene. Ag finance officials stress the importance of off-farm income, especially when crop prices are poor, as they are now.<br />
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But Hultgren, 36, differs from the norm in at least one way: he was unusually young to have held a top leadership post in a state ag commodity group. Typically, leadership positions in such groups are filled by folks in their late 40s, 50s and 60s.<br />
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Hultgren nods when asked about that. "There's a lot of gray hair on our council and association. There's more of the middle-aged people. There's only a handful of guys 45 and younger," he says.<br />
The Minnesota Corn Growers Association, which has more than 7,000 members, works with the Minnesota Corn Research and Promotion Council "to identify and promote opportunities for Minnesota's 24,000 corn farmers while building connections with the non-farming public," the association says.<br />
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<b>How to get them involved?</b></div>
Getting relatively young farmers — the average age of U.S. farmers is 58, according to the U.S. Department of Agriculture — involved in leadership roles in ag commodity groups can be challenging. Often, young farmers have children at home, which can limit their ability and interest to hold leadership posts. Young producers who farm on their own, without help from family members or employees, also can be reluctant to take on other duties.<br />
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Noah and his wife, Paula, have three young daughters. Paula, who once worked as an x-ray technician, now is a stay-at-home mother. Noah says that made it easier for him to serve as MCGA president.<br />
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Nate Hultgren says he and his father backed Noah's involvement with the group. "We know how important it is to support and promote the crops we grow," Nate says.<br />
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Adam Birr, executive director of the Minnesota Corn Growers Association, agrees that attracting young farmers to farm group leadership posts can be difficult. "The time commitment is a concern that a lot of younger growers have," he says.<br />
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The corn growers association has worked to find ways to help young farmers fulfill the duties of leadership posts by better meshing those duties with their schedule and lifestyles, Birr says. Using more electronic communication, and fewer face-to-face meetings, is one way of doing that, he says.<br />
The MCGA also is working to attract young farmers by placing more emphasis on issues in which they're especially interested. For example, young farmers have said "engaging with consumers" is critical, and so "we've made that a huge point of emphasis" with Hultgren playing a key role as president, Birr says. Hultgren "epitomizes the effort we've made to reach out to the next generation of farmers," Birr says.<br />
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<b>Didn't plan to be a farmer</b></div>
Hultgren says he enjoyed the family farm growing up, but didn't expect to become a farmer.<br />
"In the late 1990s, things didn't look too good (in agriculture.) So my original plan wasn't to be a farmer," Noah Hultgren says. "But my brother left the door for me to come back."<br />
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He earned a two-year degree in sales and management and then received his real estate license, selling real estate in the Willmar area. Willmar, population about 20,000, is the county seat of Kandiyohi County.<br />
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But with his family's encouragement, he returned to the family farm in 2001. His sales and management degree provides some help in farming. And the real estate experience aids with "understanding value," he says.<br />
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Noah is officially Hultgren Farms' agronomy manager, with Nate serving as CEO. "So, he's my brother, but he's also my boss," Noah says. Some of the Hultgren farmland is irrigated, and Duane is in charge of irrigation, though he has other duties, too, Noah says.<br />
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Today, the Hultgrens raise corn, sugar beets, soybeans, kidney beans, sweet corn and alfalfa.<br />
Their rotation is primarily beets, kidney beans and corn, with sweet corn and soybeans mixed in. They've recently begun growing more alfalfa, which they sell to a big dairy that opened nearby. The Hultgrens also have 30 beef cattle — ''Dad is a cattle guy," Noah says — on some of the family's non-tillable land.<br />
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On the day of Agweek's visit, the Hultgrens weren't quite finished with the 2016 harvest. Plentiful — sometimes too plentiful rains — had produced excellent yields in many fields, but also led to drown-out and repeated harvest delays. To complete their harvest, the Hultgrens hired a local operator with a track combine.<br />
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Even with strong yields, turning a profit on corn this year will be difficult, given low prices for the crop, Noah says. "Don't get me wrong; I'm glad we had the good yields. But we're just so far behind" on prices, he says.<br />
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<b>Still active in corn group</b></div>
Hultgren, who initially became involved with a county corn growers group, was encouraged by another grower to work at the state level, too. He's been involved with the state group for about six years, working his way up the leadership track.<br />
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Now, as immediate past president, he'll remain active in the state group, particularly with its governmental affairs committee. He plans to stay active after his current position expires, as well.<br />
He's not interested in leadership positions with the National Corn Growers Association because they would require too much time away from his family.<br />
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Hultgren stops to think for a few seconds when asked if anything surprised him during his term as state corn growers president. "Well, there's just so much — I don't know if miseducation is the word — that we're up against. There's just so much public misperception about what we're doing," particularly with sustainability, he says.<br />
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"There's nothing wrong with saying you need to stay in business to be sustainable. Every farm wants to do the best they can to be the can for the soil, but farmers need to be able to make money," he says.<br />
Hultgren says his stint as state president, though busy, was time well spent.<br />
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"There are so many things I enjoyed about it," he says. "There was the camaraderie with other people (corn growers) across the country. And there was knowing that here is an organization that can really help you, on a personal level, grow as a leader."<br />
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<a href="http://www.wctrib.com/news/local/4164261-eventful-year-young-blood-minnesota-corn-growers-group">http://www.wctrib.com/news/local/4164261-eventful-year-young-blood-minnesota-corn-growers-group</a></div>
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Noah Hultgren, The Farmland Manhttp://www.blogger.com/profile/15005597825814261930noreply@blogger.comtag:blogger.com,1999:blog-4355889050688499357.post-73058771994819482432016-06-20T10:32:00.001-05:002016-06-20T10:32:44.971-05:00Interesting StarTribune article on Farmland ManagementI read a very interesting article in the StarTribune by Tom Meersman explaining the role of farm managers and absentee landowners:<br />
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<a href="http://www.startribune.com/for-nonfarming-heirs-who-keep-land-in-the-family-managers-can-be-an-answer/383455961/">http://www.startribune.com/for-nonfarming-heirs-who-keep-land-in-the-family-managers-can-be-an-answer/383455961/</a><br />
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The article starts by introducing us to a landowner named Dave Butler, as follows:<br />
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"Dave Butler doesn’t have a clue how to farm, and he has never lived on a farm. But his parents and grandparents owned a large farm west of Hutchinson, and Butler and his brothers inherited 440 acres after their mother died in 2010. The brothers decided to keep the acreage in the family.<br />
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“It’s just a good investment,” said Butler, 62. “They don’t make dirt anymore, you know, and we want to keep it for the family heritage and investment income. I go out there quite a bit and check on it.”</div>
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How to make that investment income can be tricky. Butler and his brothers didn’t know what was an appropriate rental rate for the land or how to evaluate whether tenants were taking care of it properly."</div>
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According to the story, "Butler’s family is one of about 31,000 land owners renting out cropland in Minnesota to the tune of nearly $2 billion annually, according to federal estimates.</div>
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And as the average age of farmers inches toward 60 and more cropland passes to nonfarming younger generations, as in the case of the Butlers, the business of managing many of those farms is on the rise to help with rental agreements, taxes and other financial and land management decisions.</div>
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A 2014 survey by the U.S. Department of Agriculture estimated that more than 2 million acres of Minnesota farmland, most of it used to grow crops, is expected to be transferred during the next five years. And with the graying of farmers, it’s likely that even more ownership changes will occur during the next two decades."</div>
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If you find yourself in a similar situation to the Butlers, I'd love to become a trusted advisor for you and your family. As a farmer, landowner, farmland appraiser, and real estate agent and broker myself; I have a unique perspective that very few other people can match. I would welcome the chance to learn about your situation and provide you with the best farmland advice. </div>
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Please contact me at 320-894-7528 for more information.</div>
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Warmest,</div>
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Noah Hultgren</div>
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<a href="mailto:noah@farmlandman.com">noah@farmlandman.com</a></div>
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320-894-7528</div>
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Noah Hultgren, The Farmland Manhttp://www.blogger.com/profile/15005597825814261930noreply@blogger.comtag:blogger.com,1999:blog-4355889050688499357.post-31851687083768265642016-06-16T13:36:00.000-05:002016-06-16T13:36:06.447-05:00The House Committee on AgricultureI was privileged to be able to share some background about my life and farm with the House Committee on Agriculture, as shown here: <a href="http://agriculture.house.gov/news/documentsingle.aspx?DocumentID=3418">http://agriculture.house.gov/news/documentsingle.aspx?DocumentID=3418</a><br />
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Here's the article, which will give you some insight into our operation:<br />
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For most, receiving phone calls at 3 in the morning is an unnatural and unpleasant experience. For Minnesota farmer Noah Hultgren it’s just another day, or night, on the job. During harvest, farmers like Noah work around the clock to ensure Americans and others around the world have food on their tables. Curiosity got the best of us, so we sat down with Noah to get a glimpse about what life on a farm is really like.<br />
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The Hultgrens hail from Kandiyohi County, Minnesota, where they farm the same land Noah’s great grandfather cultivated in the 1930s. Noah’s grandfather, Lowell, was to go into World War II, but was held back to help tend the farm since his two older brothers were already in the service. Lowell and Noah’s grandmother Lucille farmed together with Noah’s great grandfather, Walter. Noah credits them for making the farm grow into what it is today and mentioned that while his grandfather passed away in 1997, Lucille is still “alive and doing well at the age of 94.” He also noted that he and his family currently live in Lowell and Lucille’s home on the farm that was built in the early 1970s.<br />
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Noah, his wife Paula, and their three young daughters Ella, Samantha, and Hannah work together with Noah’s parents, Duane and Nancy, and his brother, Nate, to run the family farm. A typical day varies season to season, with harvest and planting certainly demanding the longest hours.<br />
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During fall harvest, from around the first of September through the first part of November, the Hultgrens, along with a couple of full-time employees, work in shifts around the clock, harvesting sugar beets, corn, and kidney beans. Typically, these shifts result in 14 to 16 hour work days, with phone calls coming in at all hours of the night. When asked if he had any time to sleep, Noah responded matter-of-factly, “During harvest, you get your sleep when you can get it.” Noah went on to explain that his family works six days a week, but that they have always taken Sundays off for church and family time. He said, “We do not farm on Sundays for religious reasons and the feeling that you can’t work seven days a week. Your mind and body do not stay sharp enough.”<br />
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The majority of the Hultgrens’ land is devoted to growing corn, sugar beets and kidney beans, with the rest split evenly between soybeans, sweet corn, and alfalfa. Noah is primarily in charge of the sugar beets while his brother, Nate, calls the shots on kidney beans. Both of these crops require more hands-on management than the others. For example, sugar beets are harvested 24 hours a day in the fall while kidney beans can only be cut at night when the ground is wet and harvested during the day when it is dry.<br />
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Most of the crops do not have to travel too far once they are harvested. All of the corn silage goes to a local dairy about a mile up the road. About 75 percent of the total corn crop will end up there when it is all said and done, both silage and shelled corn. The rest of the corn is stored and dried on the farm, with about 10 percent going to an ethanol plant the Hultgrens invested in near Atwater, Minnesota, and the remainder contracted out with local elevators. The sugar beets are delivered to a local cooperative that Noah and Nate are a part of. For sugar beets, Noah and crew have to work around the occasional temperature shutdowns. If it is cooler than 28 degrees or warmer than 65, the sugar beet processing plant will close down to avoid losing the sugar content of the crop.<br />
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Kidney beans have a further distance to travel with most going to a processing plant about 5 hours away in Menomonie, Wisconsin. The soybeans are mostly raised for their seed and stored on the farm until the seed company is ready to take them. Feed soybeans are typically hauled directly to local elevators. The Hultgrens usually make four cuttings of alfalfa per year with the large majority of that being chopped and delivered to the same local dairy that their corn goes to.<br />
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The Hultgren operation is a quintessential family farm. Noah’s wife, Paula, who did not grow up on a farm, enjoys chipping in to help Noah and the crew around the farm whenever she can. She also works full-time as the mom of three young daughters and works with the local school and church. Noah says his girls will come and ride with him some during harvest because he isn’t home very much during that time but that his nephews will ride with him and his brother for as long as they can and at every chance they get. “They love the tractors,” Noah said.<br />
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He also spends time in the winter months and throughout the year traveling to Washington D.C. and the Minnesota State Capitol in Saint Paul where he advocates on behalf of Minnesota farmers as the president of the Minnesota Corn Growers Association.<br />
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The Hultgrens got into the field early this year, with the planting of sugar beets starting on April 11<sup>th</sup> and corn shortly after that. Noah commented that April was an odd month temperature-wise, with snow covering the ground on April 27<sup>th</sup> and 28<sup>th</sup> and 90 degree weather the next week. Noah said, “We had to set the planter a little deeper this year to find moisture. Right now we have emergence on everything but soybeans.” He went on to say, “Everything that is coming up looks good and consistent.”<br />
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The top things that keep Noah up worrying at night are weather, volatile markets, and farm policy, especially relating to crop insurance. He said, “It’s hard to fathom the amount borrowed under loans, and without crop insurance one bad year could easily put a farmer out of business.” Water hemp is their main weed problem to worry about, with most of those weeds having to be pulled by hand in sugar beet and soybean fields.<br />
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Noah said that although he liked farming as a kid, he initially didn’t think he was going to farm for a living. After graduating from Maccray High School, Noah went to St. Cloud Technical College where he earned a degree in Sales and Marketing. But, it wasn’t until he met Paula that he realized how much he loved farming and how great an environment it is to raise a family in. He hopes that one day one or all of his daughters will be involved in Hultgren Farms.<br />
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We look forward to checking back in with Noah and his family in the coming months to see how the crops are doing and what all he and his family are keeping busy with.<br />Noah Hultgren, The Farmland Manhttp://www.blogger.com/profile/15005597825814261930noreply@blogger.comtag:blogger.com,1999:blog-4355889050688499357.post-21012926607570323252016-04-18T09:47:00.000-05:002016-05-26T09:48:21.015-05:00West central Minnesota farmer begins corn plantingHere is my interview with Mark Dorenkamp from Brownfield Ag News:<br />
<a href="http://brownfieldagnews.com/2016/04/14/west-central-minnesota-farmer-begins-corn-planting/">http://brownfieldagnews.com/2016/04/14/west-central-minnesota-farmer-begins-corn-planting/</a><br />
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A west-central Minnesota farmer has started planting corn.<br />
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Noah Hultgren of Raymond in Kandiyohi County says conditions are good overall, but a little dry.<br />
“The seed bed worked up really nice (and) level; we’re not finding a lot of chunks in the ground. But we are planting maybe a little bit deeper (2 1/4 to 2 1/2 inches). Ideally, we’d like to be closer to 2 inches, but that’s how far you have to go down to find moisture to put the seed into.”<br />
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He tells Brownfield if the current forecast of warm temperatures and rain early next week holds true, it would be ideal.<br />
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“Get a few days (of planting) in here, then an inch of rain would be very welcome. With the soil temps probably in the low 40’s (combined) with the air temperatures getting to 70+ degrees, I see soil temps really gaining.”<br />
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Corn germinates when soils are 50 degrees and warmer.<br />
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Hultgren, the current president of the Minnesota Corn Growers Association, reminds everyone to use caution on the roads as farm activity picks up.<br />
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<a href="http://cdn.brownfieldagnews.com/wp-content/uploads/2016/04/Noah-Hultgren-4-14-16.mp3" target="_blank">Listen to the audio interview here</a><br />
<b></b><i></i><u></u><sub></sub><sup></sup><strike></strike><br />Noah Hultgren, The Farmland Manhttp://www.blogger.com/profile/15005597825814261930noreply@blogger.comtag:blogger.com,1999:blog-4355889050688499357.post-50144749238629271312015-10-19T12:53:00.003-05:002015-10-19T12:53:43.008-05:00Minnesota Corn Growers AssociationHey everyone,<br />
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I am excited to announce that this month I have begun my term as president of the Minnesota Corn Growers Association for 2015-2016. It is a huge honor to be working with this great organization, and I will always do my best to represent our great state and my fellow farmers in the best way possible.<br />
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<a href="http://www.agrinews.com/news/minnesota_news/noah-hultgren-elected-mcga-president/article_ad4f31ce-6dd1-11e5-a6f0-cb9a74c931b1.html">http://www.agrinews.com/news/minnesota_news/noah-hultgren-elected-mcga-president/article_ad4f31ce-6dd1-11e5-a6f0-cb9a74c931b1.html</a><br />
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As shown in the article, I am proud to say that “MCGA has accomplished a lot in recent years on behalf of corn farmers, especially in the areas of research, environmental stewardship and ethanol. The next step is to build on those achievements and leverage them in a way that connects with non-farming consumers. Corn farmers have an amazing story to tell. We need to make sure we’re telling it and making our voices heard outside of the farm community.”<br />
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I look forward to a very successful year. Please contact me if you have any questions or comments, or would just like to wish me luck. <br />
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Thanks,<br />
Noah<br />
<a href="mailto:noah@farmlandman.com">noah@farmlandman.com</a><br />
320-894-7528Noah Hultgren, The Farmland Manhttp://www.blogger.com/profile/15005597825814261930noreply@blogger.comtag:blogger.com,1999:blog-4355889050688499357.post-41583667333713536332015-07-20T10:23:00.000-05:002015-10-19T12:55:06.397-05:00Corn and Soybeans<span style="font-family: Arial, Helvetica, sans-serif;">Though most of my posts and focus are on corn, I got interviewed by Tom Meersman of the StarTribune a couple weeks ago for an article on soybeans.</span><br />
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<a href="http://www.startribune.com/soybeans-planted-on-record-acreage-this-year/311055001/"><span style="font-family: Arial, Helvetica, sans-serif;">http://www.startribune.com/soybeans-planted-on-record-acreage-this-year/311055001/</span></a><br />
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<span style="font-family: Arial, Helvetica, sans-serif;">Since corn prices were down, there were more acres of soybeans planted this year. Here's my section from the article:</span><br />
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<span style="font-family: Arial, Helvetica, sans-serif;"><i>"<span style="color: #222222; letter-spacing: -0.3px; line-height: 21px;">Noah Hultgren — who grows corn, sugar beets and other crops on his farm in Raymond near Willmar — said it’s no surprise that some farmers have shifted slightly to soybeans.</span></i></span><br />
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<span style="font-family: Arial, Helvetica, sans-serif;"><i>The “input” costs of land rent, seed and fertilizer have not dropped, he said, even though the price per bushel of corn has fallen off considerably.</i></span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;"><i>“In real good [crop price] years, soybeans don’t make you as much money, but in the poorer-price years you don’t lose as much either,” said Hultgren, who also is vice president of the Minnesota Corn Growers Association."</i></span><br />
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<span style="font-family: Arial, Helvetica, sans-serif;">You can read the rest of the article here: </span><a href="http://www.startribune.com/soybeans-planted-on-record-acreage-this-year/311055001/"><span style="font-family: Arial, Helvetica, sans-serif;">http://www.startribune.com/soybeans-planted-on-record-acreage-this-year/311055001/</span></a></div>
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<span style="font-family: Arial, Helvetica, sans-serif;">Have a great week!</span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;">Sincerely,</span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;">Noah Hultgren, the Farmlandman</span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;">noah@farmlandman.com</span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;">320-894-7528</span></div>
Noah Hultgren, The Farmland Manhttp://www.blogger.com/profile/15005597825814261930noreply@blogger.comtag:blogger.com,1999:blog-4355889050688499357.post-45915177005283442422015-04-01T11:12:00.001-05:002015-04-01T11:13:41.880-05:00Iowa Farmland Values Dropping QuicklyMuch like the Iowa State basketball team in the first round of this year's NCAA tournament, farmland values in Iowa were dropping recently. <br />
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Check out this fascinating article from Donnelle Eller with the Des Moines Register:<br />
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<a href="http://www.desmoinesregister.com/story/money/agriculture/2015/03/31/iowa-farmland-values/70725978/">http://www.desmoinesregister.com/story/money/agriculture/2015/03/31/iowa-farmland-values/70725978/</a><br />
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<span class="-newsgate-character-cci-dateline-">Though the entire article is filled with interesting information and insights, the first sentence tells you everything you need to know: </span><br />
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<span class="-newsgate-character-cci-dateline-">"After peaking two years ago, Iowa farmland values </span>have tumbled about 15 percent, a new report shows, and are likely to continue dropping, given weakness in corn and soybean prices."<br />
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Eller also includes some useful quotes from Wells Fargo agriculture economist Michael Swanson, who "believes the continued contraction in farmland values in Iowa and elsewhere will be significant." <br />
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The article includes a table showing average tillable cropland prices for the past decade, starting at $3,070 in March 2006, rising as high as $8,690 in March 2013, before falling back to $7,372 in March 2015. <br />
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If you have any questions about farmland prices in your area, please call me at 320-894-7528 or e-mail me at <a href="mailto:noah@hultgrenfarms.com">noah@hultgrenfarms.com</a>.<br />
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Have a great week!<br />
Noah Hultgren<br />
Farmlandman.com<br />
<a href="mailto:noah@hultgrenfarms.com">noah@hultgrenfarms.com</a><br />
320-894-7528Noah Hultgren, The Farmland Manhttp://www.blogger.com/profile/15005597825814261930noreply@blogger.comtag:blogger.com,1999:blog-4355889050688499357.post-8125569062860417952014-12-01T09:50:00.005-06:002014-12-01T09:50:53.043-06:00Strong crops, weak prices for Minnesota farmersHere is a link to a very interesting article in the StarTribune by Tom Meersman, in which he discussed the 2014 crop year and conducted interviews with farmers in our region - including Renville County, Stearns County, and Yellow Medicine County:<br />
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<a href="http://www.startribune.com/business/284195321.html">http://www.startribune.com/business/284195321.html</a><br />
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Strong crops, weak prices for Minnesota farmers</h2>
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<li class="first"> Article by: <a href="http://www.startribune.com/bios/10645426.html" title="TOM MEERSMAN">TOM MEERSMAN</a> , Star Tribune </li>
<li class="updatedBy">Updated: November 30, 2014 - 2:00 PM</li>
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Bin-busting crops in corn and soybeans are causing furrowed brows rather than smiling faces for many Minnesota farmers this year.</div>
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Strong crop yields in the state — and record-breaking crops nationally — have produced plentiful grain in 2014. However, bountiful supplies mean lower prices per bushel, and some Minnesota growers will lose money or consider themselves lucky to break even.</div>
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“Given the challenges with late planting and some flooding and an early frost, guys have to be thankful for what we got,” said Minnesota Corn Growers Association President Bruce Peterson, who farms near Northfield. “It certainly isn’t anywhere near a disaster by any means, but it’s a little bit disappointing in the final numbers.”</div>
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With 95 percent of the state’s corn harvested, the latest USDA report estimates that Minnesota corn production will be 1.29 billion bushels, 1 percent below last year’s production, and yields are expected to average 165 bushels per acre, up 5 bushels from 2013.</div>
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Minnesota soybean production is forecast at 305 million bushels, a 10 percent increase from last year.</div>
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Robert Craven, a University of Minnesota Extension economist, estimated that corn growers pay a little more than $5 a bushel for seed, fertilizer, land rent and other costs, on average, and they are faced with prices well below $4 a bushel. Average costs to grow soybeans are also higher than current selling prices, he said.</div>
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Whether producers lose money depends on a host of factors, Craven said, including whether they presold some of their 2014 crop early in the year when prices were higher, how much land they rent and how much debt they hold in land and equipment loans.</div>
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The good news, he said, is that corn and soybean growers are coming off several years of healthy profits, and good managers who know the ups and downs of the market had a chance to build up their working capital: cash in the bank and other liquid assets.</div>
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“In some of the projections we’ve done a lot of producers are going to do just fine,” Craven said. “It really becomes a question of how long this slump in [crop] prices lasts, and how quick the costs will adjust.”</div>
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Those most vulnerable to losses, he said, are those who overextended themselves with land and equipment purchases, or beginning farmers who are carrying more debt than established producers.</div>
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Mickey Peterson, who farms about 3,200 acres with four brothers near Sacred Heart in western Renville County, said 2014 was more challenging than usual. The late spring and its frozen ground delayed planting by about two weeks, he said, and was followed in June by heavy rains that drowned crops in some fields and required replanting.</div>
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“Overall, the crop came in considerably better than we anticipated,” Peterson said, and the fall weather was ideal to get the corn and soybeans harvested quickly with little down time. But he noted that recent local prices for corn are about $3.35 per bushel, compared with $4.50 to $5.00 per bushel a year ago.</div>
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“Being a farmer for 40 years, I know it’s like a roller coaster with prices up and down, and you’ve got to go with the flow,” he said. Peterson and his brothers are watching market prices closely, he said, and won’t be buying any expensive land or major new equipment.</div>
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Effects on economy</div>
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Major farm equipment manufacturers foresaw the eroding crop prices and laid off workers earlier this year, and implement dealers have been downsizing their inventories.</div>
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“We’re already hearing about equipment sitting on the dealers’ lots,” said Dale Nordquist, associate director of the Center for Farm Financial Management at the University of Minnesota. “That’s the first ripple” of how the decline may affect some parts of the rural economy, he said.</div>
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But on the other side, Nordquist said, low prices for corn and soybeans mean lower feed costs for hog and dairy producers, which are flourishing after several years of struggling.</div>
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“They’re flush with money and they’ll hold up their part of the bargain in terms of helping out the local economies because they’re in position to do some things that they haven’t been able to do in the last few years,” Nordquist said. “In certain parts of the state that will have a bigger impact maybe than the downside on the crops.”</div>
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Nordquist said it’s more important than ever for farmers to get ahead of the game in projecting their cash flows for next year, which could be tougher than 2015 in terms of profits. “Projections we’ve done have been very tight,” he said.</div>
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Peter Scheffert, vice president and agricultural loan officer for Farmers State Bank of Hartland, also expects that 2015 will be a challenge for crop farmers. Growers are beginning to project costs and cash flows for next year, he said, adding up estimates for seed, fertilizer and land rent, and comparing them to average crop production and expected sale prices.</div>
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“Like any business it’s an individual business and you’ve got to work as hard with your head as you do with your hands,” he said.</div>
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Some producers are discovering that income won’t cover expenses unless costs can be shaved or prices improve, Scheffert said.</div>
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“They haven’t seen that for a while,” he said. “That’s part of the struggle as we think about the harvest this year, and it’s part of the change and the flip from where we’ve been the past few years.”</div>
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Scrutinizing costs</div>
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John Mages, who farms about 800 acres of corn and soybeans near Belgrade in Stearns County, has been looking toward 2015 with calculator in hand.</div>
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Costs for seed and fertilizer have not come down much, he said. Rental rates for cropland that rose dramatically during the past several years will likely remain high, he said, and take at least a couple of years to readjust slightly downward.</div>
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“Next year we’re looking at not a very good year even with good yields,” Mages said.</div>
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Mages said he may plant a little less corn next year and slightly more soybeans, which don’t need as much fertilizer and are less expensive to get in the ground.</div>
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Doug Albin, who farms about 1,200 acres near Clarkfield in western Minnesota’s Yellow Medicine County, said he had an especially tough year, with more than a foot of rain in June that drowned or stunted crops, and no rain in July and August when he needed it. “We ended up with the worst of both worlds,” he said. “I’m not going to make a profit.”</div>
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Albin said he has saved during the past three or four years of good crops and profits, but he still faces some tough decisions about what’s ahead.</div>
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“We’ll be all right between the crop we did harvest and federal crop insurance that we bought,” he said. “That gives us enough to not necessarily make money, but it’ll keep us farming for another year.”</div>
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Tom Meersman • 612-673-7388</div>
Noah Hultgren, The Farmland Manhttp://www.blogger.com/profile/15005597825814261930noreply@blogger.comtag:blogger.com,1999:blog-4355889050688499357.post-14053539400014559212014-08-12T22:30:00.000-05:002014-08-12T22:30:43.463-05:00Crop prices are down, but land values are still up<span style="font-family: Arial, Helvetica, sans-serif; font-size: x-small;">I read a good article in the </span><a href="http://www.wctrib.com/content/rental-rates-cropland-values-still-increasing" target="_blank"><span style="font-family: Arial, Helvetica, sans-serif; font-size: x-small;">West Central Tribune</span></a><span style="font-family: Arial, Helvetica, sans-serif; font-size: x-small;"> today by </span><a href="http://www.wctrib.com/content/rental-rates-cropland-values-still-increasing" target="_blank"><span style="font-family: Arial, Helvetica, sans-serif; font-size: x-small;">Jonathan Knutson</span></a><span style="font-family: Arial, Helvetica, sans-serif; font-size: x-small;"> about the strange paradox of crop prices falling but rental rates and farmland values still rising. </span><br />
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<span style="font-family: Arial, Helvetica, sans-serif; font-size: x-small;">You can follow </span><a href="http://www.wctrib.com/content/rental-rates-cropland-values-still-increasing" target="_blank"><span style="font-family: Arial, Helvetica, sans-serif; font-size: x-small;">this link</span></a><span style="font-family: Arial, Helvetica, sans-serif; font-size: x-small;"> to read the article online, or read some excerpts below:</span><br />
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<a href="http://www.wctrib.com/content/rental-rates-cropland-values-still-increasing" target="_blank"><span style="font-family: Arial, Helvetica, sans-serif;"><strong>Rental rates, cropland values still increasing</strong></span></a><span style="font-family: Arial, Helvetica, sans-serif; font-size: x-small;"> </span></div>
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<span class="node-byline-time"><span style="font-family: Arial, Helvetica, sans-serif; font-size: x-small;">Crop prices have plunged, but cropland values and rental rates continue to rise, a new report says. </span><span style="font-family: Arial, Helvetica, sans-serif; font-size: x-small;">The average rental rate for U.S. nonirrigated farmland is $130 per acre, $5 more than a year ago, and the average price of U.S. cropland is $4,100 per acre, $290 per more than a year ago, according to an annual report from the National Agricultural Statistics Service, an arm of the U.S. Department of Agriculture.</span><br />
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<span style="font-family: Arial, Helvetica, sans-serif; font-size: x-small;">Average rental rates and cropland values rose in North Dakota, South Dakota, and Minnesota. </span><span style="font-family: Arial, Helvetica, sans-serif; font-size: x-small;">The increases, primarily a reflection of the multi-year stretch of farm profitability that appears to have ended, aren’t surprising, says Andy Swenson, a North Dakota State University Extension Service farm management specialist.</span></div>
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<span style="font-family: Arial, Helvetica, sans-serif; font-size: x-small;">The newly released averages are based, in part, on leases and transactions negotiated before farm profitability plunged. The recent decline in farm profitability won’t show up fully in rental rates and land values until next year, he says.</span></div>
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<span style="font-family: Arial, Helvetica, sans-serif; font-size: x-small;">David Bau, University of Minnesota Extension ag business management educator based in Worthington, says the 2015 rental rate average might not drop much from the 2014 average. </span><span style="font-family: Arial, Helvetica, sans-serif; font-size: x-small;">Some aggressive farmers, who hoped crop prices would remain high, had negotiated 2014 leases at high rates. Those high-end rates are likely to decline next year, pulling down the average, Bau says.</span></div>
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<span style="font-family: Arial, Helvetica, sans-serif; font-size: x-small;">Bau recommends farmers and landlords consider flexible rental agreements, which increase how much farmers pay when times are good and reduce what they pay when times are poor.</span></div>
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<span style="font-family: Arial, Helvetica, sans-serif; font-size: x-small;">In many cases, however, landlords aren’t interested in such agreements, preferring the certainty of fixed rates, Bau says.</span></div>
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<span style="font-family: Arial, Helvetica, sans-serif; font-size: x-small;">Future farm profitability will determine the direction of farmland values and rental rates, Swenson says. </span><span style="font-family: Arial, Helvetica, sans-serif; font-size: x-small;">Farmland values also are helped because interest rates remain extremely low, limiting the appeal of competing investments such as certificates of deposits, </span><span style="font-family: Arial, Helvetica, sans-serif; font-size: x-small;">Swenson says.</span></div>
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<span style="font-family: Arial, Helvetica, sans-serif; font-size: x-small;"></span><br />
<span style="font-family: Arial, Helvetica, sans-serif; font-size: x-small;">“Farm profitability and low interest rates are the two big reasons we’ve seen this run-up,” Swenson says. “With interest rates staying this low, farmland is more attractive.”</span></div>
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<span style="font-family: Arial, Helvetica, sans-serif; font-size: x-small;">Here’s what NASS found for U.S. and state-level cropland and pasture values in 2014:</span></div>
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<span style="font-family: Arial, Helvetica, sans-serif; font-size: x-small;">U.S. — Average cropland value rose 7.6 percent to $4,100 and average pasture value rose 11.1 percent to $1,300.</span></div>
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<span style="font-family: Arial, Helvetica, sans-serif; font-size: x-small;">Minnesota — Average cropland value rose 10.9 percent to $4,870 and average pasture value rose 1.3 percent to $1,600.</span></div>
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<span style="font-family: Arial, Helvetica, sans-serif; font-size: x-small;">Swenson cautions that state averages can mask big price variations between counties and even within the same county.</span></div>
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<span style="font-family: Arial, Helvetica, sans-serif; font-size: x-small;">Please let me know if you'd like any information about farmland values in our area. I'd love to help you buy or sell some farmland. </span><br />
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<span style="font-family: Arial, Helvetica, sans-serif; font-size: x-small;">Thanks,</span><br />
<span style="font-family: Arial, Helvetica, sans-serif; font-size: x-small;">Noah Hultgren</span><br />
<span style="font-family: Arial, Helvetica, sans-serif; font-size: x-small;"><strong>320-894-7528</strong></span><br />
<a href="mailto:noah@farmlandman.com"><span style="font-family: Arial, Helvetica, sans-serif; font-size: x-small;"><strong>noah@farmlandman.com</strong></span></a> Noah Hultgren, The Farmland Manhttp://www.blogger.com/profile/15005597825814261930noreply@blogger.comtag:blogger.com,1999:blog-4355889050688499357.post-17868191621472355992014-05-31T17:40:00.001-05:002014-06-01T22:17:22.483-05:00Don't bet the farm - FedGazette RoundupHere is a link to an interesting article about farmland values from the Federal Reserve Bank of Minneapolis:<br />
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<a href="http://minneapolisfed.typepad.com/roundup/2014/05/dont-bet-the-farm.html">http://minneapolisfed.typepad.com/roundup/2014/05/dont-bet-the-farm.html</a><br />
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It's interesting to see that farmland values in Minnesota have begun coming down, while farmland prices have been going up in all of the surrounding states. It's also a little surprising to see that cash rental prices are down in the region and 3 of the 5 states. <br />
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Have a great week,<br />
Noah<br />
320-894-7522 <br />
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<h3 class="entry-header">
Don’t bet the farm
</h3>
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Posted by Joe Mahon on
05/22/2014
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As <i>fedgazette</i> Roundup has <a href="http://minneapolisfed.typepad.com/roundup/2011/08/the-value-of-farmland-is-based-largely-on-the-value-of-the-crops-a-farmer-can-produce-on-it-recently-prices-for-district-cro.html" target="_self">documented</a>
before, farm values have been on an upsurge in recent years. The growth
has been so steep that it has prompted discussions about whether
farmland is overvalued. On the one hand, booming crop prices have
increased the return on the land, reflected in higher rents. But
memories of the 2007-09 financial crisis, with its origins in real
estate, as well as the 1980s farm crisis, have stoked concerns of a
farmland bubble.<br />
But new data suggest a pivot, or at least a cooling period, in farmland prices, according to the Minneapolis Fed’s <a href="http://www.minneapolisfed.org/publications_papers/pub_display.cfm?id=5318" target="_self">April survey</a>
of agricultural credit conditions for the first quarter of 2014. The
survey found that prices for non-irrigated farmland fell an average of
almost 2 percent across the Ninth District compared with a year earlier.
While that would still leave prices well above the levels of just a few
years ago, a broad-based fall in values is noteworthy.<br />
Comparisons across the district reveal that the fall in values took
place mostly in Minnesota (see map). In other district states, the price
continued to increase, albeit at a slower pace than the double-digit
growth typical of previous years. The survey indicated further that land
rents (also shown on the map), which are more directly tied to the
productive value of land, dropped by even more around the district and
across a broader swath of territory.<br />
Not every type of agricultural land has turned down either. The
survey found that ranchland prices continued to climb and at a faster
pace than cropland. This is especially noteworthy because the price of
ranchland has typically grown more slowly than cropland during the
run-up period. Livestock prices have climbed to historic highs, and a
reduction in crop prices means dairy, cattle and hog producers are
reaping fatter profit margins, so robust pastureland values might be
expected.</div>
</div>
- See more at: http://minneapolisfed.typepad.com/roundup/2014/05/dont-bet-the-farm.html#sthash.65785F2a.dpuf</div>
<div id="stcpDiv" style="left: -1988px; position: absolute; top: -1999px;">
<h3 class="entry-header">
Don’t bet the farm
</h3>
<div class="byline">
Posted by Joe Mahon on
05/22/2014</div>
- See more at: http://minneapolisfed.typepad.com/roundup/2014/05/dont-bet-the-farm.html#sthash.65785F2a.dpuf</div>
<div id="stcpDiv" style="left: -1988px; position: absolute; top: -1999px;">
<h3 class="entry-header">
Don’t bet the farm
</h3>
<div class="byline">
Posted by Joe Mahon on
05/22/2014</div>
- See more at: http://minneapolisfed.typepad.com/roundup/2014/05/dont-bet-the-farm.html#sthash.65785F2a.dpuf</div>
<div id="stcpDiv" style="left: -1988px; position: absolute; top: -1999px;">
<h3 class="entry-header">
Don’t bet the farm
</h3>
<div class="byline">
Posted by Joe Mahon on
05/22/2014</div>
- See more at: http://minneapolisfed.typepad.com/roundup/2014/05/dont-bet-the-farm.html#sthash.65785F2a.dpuf</div>
Noah Hultgren, The Farmland Manhttp://www.blogger.com/profile/15005597825814261930noreply@blogger.comtag:blogger.com,1999:blog-4355889050688499357.post-38656244333733449992014-04-24T07:36:00.003-05:002014-04-24T07:36:49.366-05:00Domestic oil drilling isn’t stopping the annual summer gas price hikeHere's an interesting article from <a href="http://minnesotacornerstone.com/?p=1818" target="_blank">Minnesota Cornerstone</a> about rising gas prices despite record levels of domestic oil drilling:<br />
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As we drill for more oil than ever before in the United States, gas prices are going up.</div>
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Yes, it’s that time of year again. The snow is melting, temperatures are rising, families are making summer vacation plans, people are driving more, and (conveniently) gas prices are spiking.</div>
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“Hold on a minute,” you might be saying. “We’re in the midst of a domestic oil boom. I thought that was supposed to lower gas prices?”</div>
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Despite messages you might hear from Big Oil companies (often delivered through their friends in Washington D.C. and the media), increased domestic drilling will not save you money at the pump.</div>
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According to <a href="http://www.nationalgeographic.com/foodfeatures/feeding-9-billion/#topskip" style="border: 0px; color: #21759b; margin: 0px; outline: none; padding: 0px; vertical-align: baseline;" target="_blank" title="Gas prices">this story from the Wall St. Journal,</a> U.S. gasoline stockpiles are at their lowest for this time of year since 2011, which is driving up prices. Why are gas stockpiles low and prices up if we’re drilling for more oil here at home?</div>
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Because oil companies are exporting gas to other countries, creating a shortage in the U.S. and driving up prices again. From the Wall St. Journal story:</div>
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<span style="border: 0px; color: #333333; margin: 0px; padding: 0px; vertical-align: baseline;"> …the retail price for a gallon of regular gasoline averaged $3.68 on Monday, up 4.2% from a year ago, according to the EIA. That is the highest price since March 2013. AAA had the average price on Monday at $3.67…Total petroleum exports, mostly gasoline and diesel, averaged about 3.6 million barrels a day last week, according to the EIA, up 25% from the same period last year.</span></div>
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So instead of delivering on the promise of lower gas prices with increased domestic drilling, Big Oil is just exporting more gas and once again inflating gas prices as families prepare to hit the road for a summer getaway.</div>
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It would have been nice if the Wall St. Journal provided some information and context in the story about the role homegrown ethanol and biofuels play in <a href="http://www.ethanolrfa.org/news/entry/new-university-study-ethanol-reduced-gas-prices-by-more-than-1-in-2011/" style="border: 0px; color: #21759b; margin: 0px; outline: none; padding: 0px; vertical-align: baseline;" target="_blank" title="Gas prices ethanol">cutting prices at the pump.</a> Or how now is not the time to <a href="http://www.mncorn.org/media-center/minnesota-corn-growers-extremely-disappointed-epa-proposal-cut-ethanol-blending-goals" style="border: 0px; color: #21759b; margin: 0px; outline: none; padding: 0px; vertical-align: baseline;" target="_blank" title="Renewable Fuel Standard">slash the Renewable Fuel Standard</a> and reduce the amount of ethanol blended in American gasoline.</div>
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Unfortunately, the Wall St. Journal is notorious for it’s <a href="http://online.wsj.com/news/articles/SB10001424052748703396604576088010481315914?mg=reno64-wsj&url=http%3A%2F%2Fonline.wsj.com%2Farticle%2FSB10001424052748703396604576088010481315914.html" style="border: 0px; color: #21759b; margin: 0px; outline: none; padding: 0px; vertical-align: baseline;" target="_blank" title="Ethanol Wall St. Journal">blind hatred of ethanol,</a> and is one of the main publications Big Oil counts on to spread misinformation and parrot talking points about American farmers and biofuels.</div>
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If you’re looking to save a few bucks at the pump on your family vacation this summer, fill up with higher blends of ethanol. There is a promotion in West Central Minnesota that prices E85 (a blend of 85 percent ethanol and 15 percent gasoline) <a href="http://minnesotacornerstone.com/?p=1780" style="border: 0px; color: #21759b; margin: 0px; outline: none; padding: 0px; vertical-align: baseline;" target="_blank" title="Ethanol prices">at least $1 less than gasoline.</a> Higher blends like <a href="http://minnesotacornerstone.com/?p=1442" style="border: 0px; color: #21759b; margin: 0px; outline: none; padding: 0px; vertical-align: baseline;" target="_blank" title="E15">E15 and E30</a> are now available in the Twin Cities.</div>
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You can get more details on where to buy higher ethanol blends in Minnesota at the American Lung Association of Minnesota’s <a href="http://www.cleanairchoice.org/fuels/e85.cfm" style="border: 0px; color: #21759b; margin: 0px; outline: none; padding: 0px; vertical-align: baseline;" target="_blank" title="American Lung Association">Clean Air Choice page.</a></div>
Noah Hultgren, The Farmland Manhttp://www.blogger.com/profile/15005597825814261930noreply@blogger.comtag:blogger.com,1999:blog-4355889050688499357.post-86299171882300021832014-04-10T21:12:00.000-05:002014-04-10T21:12:20.067-05:00Farmland values in Renville and Kandiyohi County are March-ing upward!I know we're into April now, but I read an article last month about how farmland values are still March-ing upward, though the market seems to be slowing down.<br />
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In an excellent article in the West Central Tribune by Tom Cherveny, he details the significant rise in farmland values over time in our region, including Kandiyohi, Renville, Yellow Medicine, Chippewa, Swift, and Lac qui Parle counties. <br />
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The full article is here: <u><span style="color: #0066cc;"><a href="http://www.wctrib.com/content/farmland-values-continue-upward-some-signs-cooling-market">http://www.wctrib.com/content/farmland-values-continue-upward-some-signs-cooling-market</a></span></u> <br />
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<b id="yui_3_13_0_1_1397178163307_6269"><span id="yui_3_13_0_1_1397178163307_6268" lang="EN" style="font-size: 24pt;">Farmland values continue upward but some signs of cooling market</span></b></div>
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<span id="yui_3_13_0_1_1397178163307_6323" lang="EN">By <a href="http://www.wctrib.com/users/tom-cherveny" id="yui_3_13_0_1_1397178163307_6322" rel="nofollow" target="_blank"> Tom Cherveny</a> </span></div>
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<span lang="EN">"The value of tillable farmland continues to rise in the region, although some county assessors are seeing signs suggesting that the market may be ready to cool down. </span></div>
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<span lang="EN"></span><span id="yui_3_13_0_1_1397178163307_6309" lang="EN">Recently distributed property tax notices have already informed most landowners that values are up once again, continuing a trend that took off in earnest in 2008. </span><span lang="EN">The assessed value for 2014 on tillable land rose by approximately 10 percent or more in most area counties, including Renville County, which typically sets the pace.</span></div>
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<span lang="EN">Renville County saw its largest increase in 2013, when the per-acre value of tillable land ranged from $4,822 to $10,014, according to information from County Assessor Barb Trochlil. </span><span id="yui_3_13_0_1_1397178163307_6305" lang="EN">The 2014 assessment range is $5,140 to $14,190 per acre. There were 67 sales evaluated, indicative of a strong market. The assessments are based on sales from October 2012 to Sept. 30, 2013.</span></div>
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<span lang="EN">Other counties in the area have yet to crack the $10,000-per-acre mark, but they are coming close. Assessor Val Skor, Kandiyohi County, reported that the county’s 2014 tillable land values range from $3,354 to just over $9,000 an acre.</span></div>
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<span lang="EN">Land values to the west are not as high. </span><span id="yui_3_13_0_1_1397178163307_6311" lang="EN">It is also where some of the first indications of a possible change in the ag market are coming, according to Connie Erickson, Yellow Medicine County assessor. She spoke recently about the changes at a program with former state demographer Tom Gillaspy.</span></div>
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<span lang="EN">Erickson pointed out that since October, her office has seen several land auctions where no sales occurred because the sellers were not offered the prices they anticipated. </span><span id="yui_3_13_0_1_1397178163307_6316" lang="EN">She also noted that agricultural land values rose by 255 percent in the last six years, including a 36 percent jump in 2013. This last year’s increase was only 10 percent.</span></div>
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<span lang="EN">Assessor Bonnie Crosby, of Chippewa County, said sales records also seem to suggest that values are not rising as rapidly as in prior years. </span><span id="yui_3_13_0_1_1397178163307_6325" lang="EN">Nonetheless, other counties continue to see steady and relatively large increases. In Lac qui Parle County, land values rose 20 percent in the latest assessment, with a range for 2014 of $4,131 to $7,489, according to Assessor Lori Schwendemann.</span></div>
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<span lang="EN">Swift County is seeing steady jumps as well. From 2013 to 2014, the average for tillable acres rose from $4,420 to $5,730 per acre, reported Wayne Knutson, county assessor. </span><span lang="EN">Swift County saw 39 sales for 5,378 acres in the time period evaluated for 2013 assessments. In the period for the current 2014 assessments, it saw 29 sales for 2,540 acres. </span></div>
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<span lang="EN"></span><span lang="EN">Swift County has seen more activity than would be expected due to the Minnesota Farm Company. It owns several thousand acres in the western part of the county, and has been marketing the properties. </span><span lang="EN">The company’s land sales have greatly complicated the task of assessing values in the county. Knutson said there have been surprising variations in the prices at which land sold in recent sales.</span></div>
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<span lang="EN">No matter the variations in values per acre, all of the counties in the area have seen major increases in farmland values since 2008, while residential and commercial/industrial property values have remained largely unchanged.</span></div>
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<span lang="EN">The result is a major increase in the tax capacity of the counties, along with a shift of the overall burden to agriculture. Erickson reported that in Yellow Medicine County, the tax base has risen from $1.4 billion to $3.2 billion, with agriculture representing $2.8 billion of the total. </span><span id="yui_3_13_0_1_1397178163307_6329" lang="EN">Swift County added nearly $500 million in value last year alone due to the rising value of farmland, noted Knutson."</span></div>
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<span lang="EN">If you have any questions about selling your farmland, please contact me at 320-894-7528 or <a href="mailto:noah@farmlandman.com">noah@farmlandman.com</a>. I would be happy to help you out!</span></div>
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<span lang="EN">Sincerely,</span></div>
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<span lang="EN">Noah Hultgren</span></div>
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<span lang="EN"><a href="mailto:noah@farmlandman.com">noah@farmlandman.com</a></span></div>
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<span lang="EN">320-894-7528</span></div>
Noah Hultgren, The Farmland Manhttp://www.blogger.com/profile/15005597825814261930noreply@blogger.comtag:blogger.com,1999:blog-4355889050688499357.post-41923556194867358872014-03-29T10:44:00.001-05:002014-03-29T10:44:20.427-05:00Minnesota farmers' income plunged 78% in 2013<div class="yiv9362456973Text_Body" id="yui_3_13_0_1_1396041225485_6009">
Not a huge surprise, but data from the University of Minnesota's Center for Farm Financial Management shows that farm income was down significantly in 2013. An article from Mike Hughlett of the StarTribune provides more detail:</div>
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<a href="http://www.startribune.com/business/252640421.html" id="yui_3_13_0_1_1396041225485_6007" rel="nofollow" target="_blank">http://www.startribune.com/business/252640421.html</a></div>
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Minnesota farmers' income plunged 78% in 2013</div>
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Article by: <a href="http://www.startribune.com/bios/89522247.html" id="yui_3_13_0_1_1396041225485_6003" rel="nofollow" target="_blank" title="MIKE HUGHLETT"><span id="yui_3_13_0_1_1396041225485_6002" style="color: #0066cc;">MIKE HUGHLETT</span></a> , Star Tribune</div>
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Minnesota farmers’ income dropped 78 percent in 2013, as falling commodity prices took their toll.</div>
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Net income for the median Minnesota farm was $41,899, down from $189,679 in 2012, according to an annual report released Thursday by Minnesota State Colleges and Universities (MnSCU) and University of Minnesota Extension.</div>
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A primary culprit was a drop in corn prices from a lofty $7 to $8 per bushel in 2012 to a more pedestrian $4 to $5 per bushel last year. Also, corn and soybean yields were down as weather conditions were worse in 2013 than the previous year.</div>
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“A decline from 2012 levels should not come as a big surprise,” Dale Nordquist, an economist for the U’s Center for Farm Financial Management, said in a news release. “We have to remember where we came from. 2012 was a very profitable year for Minnesota farms.”</div>
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Livestock farmers did not fare much better than crop farmers, according to the report. While the price of milk, pork and beef were all up, higher feed costs and other factors pushed down livestock farm profits.</div>
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Prospects for livestock producers are better for the coming year, with strong prices projected. But crop farmers will see much tighter margins in 2014, the report said, as commodity prices remain low relative to 2012.</div>
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“Most crop producers were in pretty good shape to handle a down year (in 2013),” Nordquist said. “The question is, `How long will these reduced profits last?’”</div>
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It will be interesting to see how this year shakes out, once we can get in the fields again.</div>
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Noah Hultgren</div>
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<a href="mailto:noah@farmlandman.com">noah@farmlandman.com</a></div>
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320-894-7528</div>
Noah Hultgren, The Farmland Manhttp://www.blogger.com/profile/15005597825814261930noreply@blogger.comtag:blogger.com,1999:blog-4355889050688499357.post-42798010801513399472014-02-13T20:41:00.000-06:002014-02-13T20:41:05.360-06:00Local housing market is building upThe West Central Tribune published an article by Anne Polta this week about how the local real estate market is improving. You can read the full article here: <a href="http://www.wctrib.com/content/local-realtors-say-housing-market-looks-rosy-year-both-buyers-and-sellers">http://www.wctrib.com/content/local-realtors-say-housing-market-looks-rosy-year-both-buyers-and-sellers</a><br />
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Here are a couple highlights that I pulled out:<br />
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"New figures from the Minnesota Association of Realtors show steady improvement over the past year in virtually every indicator. Statewide, new listings were up 4.1 percent last year compared to the year before, while closed sales were up 4.6 percent."<br />
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"Prices also are gaining strength. On average, homes across Minnesota sold for 11.2 percent more in 2013 than they did in 2012. Meanwhile, the number of sellers who received their original asking price inched upward as well, from 92.5 percent to 94.6 percent."<br />
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"The median sales price for homes in the region rose 17.3 percent last year, from $102,300 to $120,000. Although homes in the four-county region still take longer to sell than in the metro area, there was an 11.5 percent drop last year in the number of days the average house spent on the market, from 131 days to 116 days. The region also saw a 5.6 percent increase last year in new listings and a 9 percent increase in closed sales."<br />
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"The local market still contains several foreclosed and short-sale properties, but observers say the numbers of these are on the decline."<br />
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If you're ready to test the market and sell your home, please call me at 320-894-7528. I'd love the chance to work with you and find you a great value!<br />
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Sincerely,<br />
Noah Hultgren<br />
<a href="mailto:noah@farmlandman.com">noah@farmlandman.com</a><br />
320-894-7528Noah Hultgren, The Farmland Manhttp://www.blogger.com/profile/15005597825814261930noreply@blogger.comtag:blogger.com,1999:blog-4355889050688499357.post-18895739670013837852014-02-10T18:29:00.002-06:002014-02-10T18:29:46.932-06:00Nanograms and M&MsI read an interesting blog post from the "Farm Meets Fork" blog the other day about the amount of hormones found in different types of food. The way she shares this information is extremely useful. If everything was counted with M&Ms I could understand a lot more...<br />
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<a href="http://nefb.wordpress.com/2013/08/23/whats-the-beef-mms-and-hormones/" target="_blank">http://nefb.wordpress.com/2013/08/23/whats-the-beef-mms-and-hormones/ </a><br />
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<a href="http://2.gravatar.com/avatar/e3661ae72067415c9d020c2102d44b15?s=256&d=identicon&r=G" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="http://2.gravatar.com/avatar/e3661ae72067415c9d020c2102d44b15?s=256&d=identicon&r=G" /></a></div>
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Not everyone knows hormones exist in every living thing. Synthetic doesn't mean bad. A fair amount of beef and dairy receive some form of hormones. FDA, just as in human drugs, go through thorough testing and review before they are approved for use.<br />
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Just an interesting story to think about...<br />
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Have a great day,<br />
Noah Hultgren<br />
<a href="http://www.farmlandman.com/" target="_blank">The Farmlandman</a><br />
<a href="mailto:noah@farmlandman.com">noah@farmlandman.com</a><br />
320-894-7528Noah Hultgren, The Farmland Manhttp://www.blogger.com/profile/15005597825814261930noreply@blogger.comtag:blogger.com,1999:blog-4355889050688499357.post-25375467711618990312014-01-31T23:13:00.001-06:002014-01-31T23:13:55.648-06:00A Glimpse of the Future?This is going to sound strange, but I read an interesting article the other day about how farmers in Minnesota and North Dakota are learning about how to use unmanned aircraft systems (drones) in precision farming. <br />
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It's a fascinating idea, and the article - written by Mikkel Pates of the Forum News Service - interviews several local farmers to get their feelings about the new technology. <br />
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You can read the article here:<br />
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<a href="http://www.twincities.com/localnews/ci_25008028/minnesota-north-dakota-farmers-eye-drones?source=email">http://www.twincities.com/localnews/ci_25008028/minnesota-north-dakota-farmers-eye-drones?source=email</a><br />
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Are we getting a glimpse of the future of farming?<br />
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Take care,<br />
Noah Hultgren<br />
The Farmlandman<br />
<a href="mailto:noah@farmlandman.com">noah@farmlandman.com</a><br />
320-894-7528Noah Hultgren, The Farmland Manhttp://www.blogger.com/profile/15005597825814261930noreply@blogger.comtag:blogger.com,1999:blog-4355889050688499357.post-1305381145941794382013-12-20T22:22:00.000-06:002013-12-20T22:22:47.943-06:00Ethanol is not subsidized by taxpayersI am reposting this <a href="http://minnesotacornerstone.com/?p=1560" target="_blank">blog article</a> from <a href="http://minnesotacornerstone.com/?p=1560" target="_blank">Minnesota Cornerstone</a>:<br />
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Ethanol is not subsidized by taxpayers</h1>
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<em style="border: 0px; font-size: 1rem; line-height: 1.714285714; margin: 0px; padding: 0px; vertical-align: baseline;"><img alt="" class="alignright" height="143" src="http://www.tactical-graphic-design.com/clip-art-downloads_htm_files/124.png" style="border-bottom-left-radius: 3px; border-bottom-right-radius: 3px; border-top-left-radius: 3px; border-top-right-radius: 3px; border: 0px; box-shadow: rgba(0, 0, 0, 0.2) 0px 1px 4px; float: right; font-size: 14px; height: auto; margin: 0.857142857rem 0px 0.857142857rem 1.714285714rem; max-width: 100%; padding: 0px; vertical-align: baseline;" width="151" />“The only problem I have with ethanol is that it’s subsidized by the government!”</em></div>
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<em style="border: 0px; margin: 0px; padding: 0px; vertical-align: baseline;">“Why take the people’s tax money and hand it to a few corporate faremers (sic) & refiners?” </em></div>
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<em style="border: 0px; margin: 0px; padding: 0px; vertical-align: baseline;">“Let’ look at the damage caused by subsidizing ethanol.”</em></div>
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These are actual reader comments on recent newspaper stories that focus on ethanol. If the topic of ethanol comes up among friends or family members, odds are at least somebody will bemoan “all those ethanol subsidies that farmers get.”</div>
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Here’s the thing: Ethanol isn’t subsidized. Your tax dollars directly support many different industries, but ethanol isn’t one of them.</div>
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Critics take misguided shots (deliberate or otherwise) at ethanol from a number of different angles. But there’s a difference between being misguided and flat-out wrong. If you think ethanol is subsidized, you’re flat-out wrong.</div>
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Yes, it’s true that various federal and state tax and blending credits — starting with The Energy Tax Act of 1978 — have aided ethanol over the years. For example, the Minnesota legislature reduced the state fuel tax on gasoline that contains at least 10 percent ethanol by 4 cents per gallon in 1980. That credit diminished over the years and was phased out completely in 1997. A state ethanol producer payment program, which applied to ethanol plants, not farmers, ended in 2012.</div>
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January 1, 2012 marked the end of the federal ethanol blending credit, and, thus, the end to what many considered ethanol “subsidies.” It’s also important to point out that blending credits did not go to farmers. Checks weren’t being cut to farmers simply for growing corn that was made into ethanol. Energy producers (i.e. oil companies and refiners) received the credits as an incentive to blend more cleaner-burning ethanol and reduce the negative impact vehicle emissions had on air quality.</div>
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The next time you’re in the same room with someone who starts pounding his or her first on the table and shouting about “those damn farmers and their ethanol subsidies,” execute the following plan:</div>
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1. Explain to the angry person the facts about ethanol “subsidies,” as outlined in this post.</div>
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2. In all likelihood, the angry person probably will reject the facts because it doesn’t fit his or her predetermined set of beliefs. Once populist rhetoric or easy-to-digest talking points become entrenched in a person’s head, it’s tough to get them out.</div>
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3. Direct the anger somewhere more appropriate. If the person is mad about ethanol “subsidies” and refuses to believe that ethanol “subsidies” don’t exist, try to focus their anger on actual subsidies that are alive and well.</div>
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4. For starters, you can tell them about the <a href="http://www.theatlantic.com/business/archive/2013/03/americas-most-obvious-tax-reform-idea-kill-the-oil-and-gas-subsidies/274121/" style="border: 0px; color: #21759b; margin: 0px; outline: none; padding: 0px; vertical-align: baseline;" target="_blank" title="Oil industry subsidies">$7 billion per year</a> that oil companies enjoy in public subsidies. Get them fired up about using taxpayer dollars to <a href="http://msn.foxsports.com/mlb/story/tea-party-members-have-serious-beef-with-atlanta-braves-new-stadium-121813" style="border: 0px; color: #21759b; margin: 0px; outline: none; padding: 0px; vertical-align: baseline;" target="_blank" title="Atlanta Braves stadium">build sports stadiums</a> for billionaire owners. There are all kinds of actual subsidies to be angry about. Getting all fired up about ethanol subsidies that don’t exist is a tremendous waste of energy.</div>
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5. Ask the angry person if he or she would rather get their fuel from an American corn field, or heavily subsidized oil companies that drill in the Middle East or the <a href="http://cdn.zmescience.com/wp-content/uploads/2013/01/tarsands.jpg" style="border: 0px; color: #21759b; margin: 0px; outline: none; padding: 0px; vertical-align: baseline;" target="_blank" title="Alberta Tar Sands">Alberta Tar Sands?</a></div>
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(You might be wondering what you should do when commenters on articles about ethanol on newspaper websites get the facts wrong. Proceed with caution. Newspaper website comments sections are <a href="http://minnesotacornerstone.com/?p=1439" style="border: 0px; color: #21759b; margin: 0px; outline: none; padding: 0px; vertical-align: baseline;" target="_blank" title="Newspaper Comments Sections">scary places where facts and reason go to die</a>.)</div>
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As the debate about ethanol and the <a href="http://cqrcengage.com/mncorn/app/write-a-letter?2&engagementId=33560" style="border: 0px; color: #21759b; margin: 0px; outline: none; padding: 0px; vertical-align: baseline;" target="_blank" title="Renewable Fuel Standard">Renewable Fuel Standard</a> (legislation that sets goals for the amount of ethanol we blend in gasoline) heats up, critics of renewable fuels are out in full force. Many of them are still clinging to the blatantly wrong argument that ethanol is directly subsidized by taxpayers. The Environmental Protection Agency’s proposal to reduce the amount of ethanol blended in gasoline by 1.4 billion gallons in 2014 has serious ramifications for farmers, the rural economy and our environment. It is absolutely essential that farmers and renewable fuels supporters push back on myths created by the opposition during this debate.</div>
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Ethanol is <em style="border: 0px; margin: 0px; padding: 0px; vertical-align: baseline;">not </em>“subsidized.” That’s one myth that is easily discredited.</div>
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Noah Hultgren, The Farmland Manhttp://www.blogger.com/profile/15005597825814261930noreply@blogger.comtag:blogger.com,1999:blog-4355889050688499357.post-33273749121377668942013-11-05T08:55:00.003-06:002013-11-05T08:55:57.831-06:00Farmers take in 25 percent of corn in a weekIt's been a long, strange harvest season this year. I saw this article by Gretchen Schlosser in the local West Central Tribune today talking about progress in the corn harvest, as well as other crops like soybeans and sugar beets:<br />
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<a href="http://www.wctrib.com/content/farmers-take-25-percent-corn-week" target="_blank">Farmers take in 25 percent of corn in a week</a></h1>
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<span class="node-byline-author">By <a href="http://www.wctrib.com/users/gretchen-schlosser">Gretchen Schlosser</a></span><span class="node-byline-date"> on Nov 4, 2013</span><span class="node-byline-time"> at 11:28pm</span></div>
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<span class="node-byline-time">Minnesota’s farmers harvested 25 percent of the corn crop last week, pushing the total percentage of the crop harvested to 73 percent.</span></div>
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<span class="node-byline-time">According to the weekly U.S. Department of Agriculture crop/weather report, there were five days suitable for fieldwork last week, which pushed the corn harvest ahead of the 72 percent five-year average.<br />
The soybean harvest also pushed beyond the five-year average, with 96 percent of the soybeans harvested as of Sunday, compared to a 92 percent average. Five percent of the soybeans were harvested during the week.<br />
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Ninety nine percent of the sugar beets had been lifted, four points better than the five-year average of 95 percent. Fifteen percent of the crop was lifted during the week.<br />
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Nationally, the USDA reports that 73 percent of the corn crop has been taken in by farmers in the 18 states that produce the vast majority of the crop. Similarly, 86 percent of the soybean crop has been harvested in the 18 states producing most of that crop. The five-year averages are 81 percent for corn and 85 percent for soybeans.<br />
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Farmers in the four states that produce most of the nation’s sugar beets, North Dakota, Minnesota, Idaho and Michigan, had taken in 93 percent of the crop, compared with a 90 percent five-year average.<br />
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The report also notes that the corn crop is drying a bit, with the percentage of moisture at 19 percent in the corn, compared to 21 percent last week. Soybeans remained steady at 13 percent moisture.</span></div>
Noah Hultgren, The Farmland Manhttp://www.blogger.com/profile/15005597825814261930noreply@blogger.comtag:blogger.com,1999:blog-4355889050688499357.post-2463227681823387582013-10-22T08:16:00.002-05:002013-10-22T08:18:40.946-05:00Crop harvest slowed by conditions but yields better than expectedI got interviewed for a story by Gretchen Schlosser in the West Central Tribune:<br />
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<strong>Crop harvest slowed by conditions but yields better than expected after wet spring, summer drought</strong> <br />
<a href="http://www.wctrib.com/content/crop-harvest-slowed-conditions-yields-better-expected-after-wet-spring-summer-drought">http://www.wctrib.com/content/crop-harvest-slowed-conditions-yields-better-expected-after-wet-spring-summer-drought</a><br />
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Reports from west central Minnesota farmers and agriculture professionals reflect the USDA crop-weather report issued Monday: the crop harvest has been slowed by rain, but yields are better than some farmers expected after a wet, late spring and drought conditions this summer.<br />
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Reached on his cell phone as he was combining corn north of Willmar, Alan Carlson reported that he is not far enough along in harvesting the crop. He estimated that he had harvested about 20 percent of his corn and was working in a drier than average field.<br />
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The yields were about what Carlson expected, with the lower ground yielding good numbers, but the higher, sandy hills producing less grain. The corn was running about 20 percent moisture, but the date on the calendar won’t allow for any drying in the field, he said. “It’s time to get it done,” he said.<br />
Like other farmers, Carlson reported soybean yields that were better than expected. His average was between 46 and 55 bushels an acre.<br />
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The state crop-weather report, the first report issued in three weeks due to the government shutdown, shows that 19 percent of the state’s corn crop has been harvested, compared to 95 percent last year and 49 percent on a five-year average.<br />
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The soybean harvest, at 80 percent, is behind last year’s record pace of 100 percent, and on par with the five-year average of 83 percent. The sugar beet harvest lagged, at 66 percent, behind the 86 percent reported last year and the 80 percent five-year average.<br />
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Nationally, 39 percent of the corn crop and 63 percent of the soybeans was harvested as of Sunday — a figure based on progress in the 18 states that grow 93 to 95 percent of the two crops. Across the country, 62 percent of the sugar beets had been lifted, slightly less than the 66 percent five-year average.<br />
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Locally, the sugar beet harvest has been slowed significantly by rainfall. Noah Hultgren, who farms with his family in the Willmar area, reported that they would usually have 50 to 60 percent of their beets lifted, but had only 20 to 30 percent out of the ground and were having to push or pull each truck through the field to haul out the beets.<br />
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“It’s a slow-moving progress,” Hultgren said Monday, estimating that two weeks of good weather, with no rain, would be needed to finish the harvest. Hultgren said the yields on the corn and the sugar beets were a little better than he expected two months ago when drought conditions persisted across the region.<br />
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Locally, Wes Nelson, executive director of the Farm Service Agency in Kandiyohi County, estimated that 90 percent of the soybeans had been harvested and that farmers were plugging away at the corn, with an estimated 25 percent of that crop out of the field.<br />
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Nelson reported that farmers reported both corn and soybean yields better than they had expected, but with variability based on soils. There have also been reports of lighter than normal test weights in the corn.<br />
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Like Hultgren, Nelson stressed that the biggest concern is getting the sugar beets harvested. “We need a dry stretch to get that done,” he said, noting that the piling sites have only small piles so far. “It will be a challenge for the sugar beet producers.”<br />
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Nelson was back in the office after the government shutdown and noted that the staff was processing the annual rental payments for the Conservation Reserve Program and then would move on to the Direct and Counter-cyclical Program and Average Crop Revenue Election program payments. He estimated that the CRP payments would show up in landowner’s accounts next week, and the DCP and ACRE payments would be completed in the first full week of November.<br />
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Jodi DeJong-Hughes, University of Minnesota Extension crops educator for the region, said that soybean yields were running a lot better than most farmers expected. The usual average is about 40 bushels, but this year’s yields are in the 50-bushel range.<br />
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As for corn, most farmers report their crop yields would be good if they could take both the drowned-out low acres and the drought-burned hills out of the equation, she said. “Mother Nature was definitely in control this year,” she said. “There’s not much a farmer could do this year to change that.”<br />
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DeJong-Hughes estimated the corn yield at 180 bushels per acre, but cautioned she’s heard reports of yields all over the board. As part of her work in extension, DeJong-Hughes took aerial photos three times this summer to observe and record crop conditions. The fields began the season yellowed by wet conditions, then greened up, and later dried out in the dry conditions.<br />
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Even if a field looks green and healthy from the roadway, she said, the view from above and ultimately, the yield totals at harvest time, show what’s really happening on that piece of land.<br />
“Fly over with a plane and the field tells you a different story,” she said, noting that the fields never did catch up this year and that the combine will slow that lost potential at harvest.Noah Hultgren, The Farmland Manhttp://www.blogger.com/profile/15005597825814261930noreply@blogger.comtag:blogger.com,1999:blog-4355889050688499357.post-4823178225512406062013-08-29T22:33:00.001-05:002013-08-29T22:33:10.123-05:00New record price for land in Nobles CountyAccording to an article by Julie Buntjer in the Worthington Daily Globe, a recent farmland sale in Nobles County set a new record for price at $13,000 per acre. <br />
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You can read the full article here: <a href="http://www.dglobe.com/content/land-sale-sets-new-record-nobles-county">http://www.dglobe.com/content/land-sale-sets-new-record-nobles-county</a><br />
<br />
<a href="http://www.dglobe.com/sites/all/themes/dglobe_theme/logo.png" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" height="50" src="http://www.dglobe.com/sites/all/themes/dglobe_theme/logo.png" width="200" /></a>"The winning bidders, Todd and Lorna Kruger of Sibley, Iowa, paid $13,000 per acre for the 156.8-acre parcel of tillable land, for a total price tag of $2,038,400. Sold by the heirs of Ella Mae Sall, the Prins-Sliver Auction Service saw brisk bidding among a field of regional bidders in the auction, according to Steve Prins."<br />
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That was nearly $1,000 more per acre than the previous record sale price of $12,050 per acre, which was up from the previous record of $11,700. Farm land prices are jumping quickly in southern Minnesota, following trends in Iowa.<br />
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" 'As far as the buyers, we hope that the farming industry continues to be good -- it's been good for the past few years and that's the reason they can afford to pay these prices,' said Prins, adding that a healthy farm economy is good for the community and local businesses. 'You can't believe the number of people looking for land,' he added. 'We have got a list of people who want land so terribly bad that you can't believe it. That's what's driving the prices up. The corn prices, the bean prices have been good, but there's just such a demand.' "<br />
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If you're ready to <a href="http://www.farmlandman.com/appraisals.html" target="_blank">see what prices look like in your area</a> or you're ready to sell your farmland, please call me for an <a href="http://www.farmlandman.com/appraisals.html" target="_blank">appraisal</a> or real estate advice. I'd love to help!<br />
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Sincerely,<br />
Noah Hultgren<br />
<a href="mailto:noah@farmlandman.com">noah@farmlandman.com</a><br />
320-894-7528Noah Hultgren, The Farmland Manhttp://www.blogger.com/profile/15005597825814261930noreply@blogger.comtag:blogger.com,1999:blog-4355889050688499357.post-27839816083650100192013-08-21T12:44:00.001-05:002013-08-21T12:44:08.430-05:00Ask a farmer: What is the difference between sweet corn and field corn?I recently wrote an article for the Minnesota Farm Guide, about the difference between sweet corn and field corn. Take a look at the article below, or here: <a href="http://www.minnesotafarmguide.com/news/crop/article_bd236186-093a-11e3-9c90-0019bb2963f4.html">http://www.minnesotafarmguide.com/news/crop/article_bd236186-093a-11e3-9c90-0019bb2963f4.html</a><br />
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<span class="pubdate">August 19, 2013 8:49 pm</span> • <span class="byline"><a href="http://www.minnesotafarmguide.com/search/?l=50&sd=desc&s=start_time&f=html&byline=By%20Noah%20Hultgren%2C%20Minnesota%20Corn%20Growers%20Association">By Noah Hultgren, Minnesota Corn Growers Association</a></span><br />
<span class="byline"><em><span style="font-size: x-small;">“Ask a farmer” is a new column written by a different Minnesota corn farmer every month. It will be sent on the third Monday of each month and cover farming issues and questions that farmers often hear from the non-farming general public.</span></em><br />
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Sweet corn. It’s almost as American as apple pie.<br />
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If you’re barbequing with friends and family on a sunny weekend evening in Minnesota, chances are good that corn on the cob is part of the menu. Or maybe you’re celebrating Thanksgiving with a plump turkey and all the fixings – mashed potatoes, dressing, cranberries, and a nice big serving bowl filled with sweet corn.<br />
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When most people think of corn, it’s sweet corn that comes to mind. But the fact is, of the 97.2 million acres of corn planted in the United States last year, sweet corn made up less than 1 percent of the total crop. The rest was field corn.<br />
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When driving through rural Minnesota or any other Corn Belt state, it’s usually field corn you see out your window. Although field corn kernels start out soft like sweet corn, it’s not harvested until the kernels are dry. Field corn is used to feed livestock, make the renewable fuel ethanol and thousands of other bio-based products like carpet, make-up or aspirin.<br />
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Sweet corn is harvested when the kernels are soft and sweet, making it ideal for eating. If you grab an ear of field corn and try to take a bite, you’ll probably break your teeth. It’s hard and dry (and only tastes good to cows, chickens, pigs, turkeys and some wild animals).<br />
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U.S. corn farmers harvested 10.8 billion bushels of field corn last year. Minnesota corn farmers harvested a record 1.37 billion bushels. In contrast, 158.7 million bushels of sweet corn was harvested throughout the entire United States.<br />
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While sweet corn satisfies our taste buds, field corn improves our lives in many other ways.<br />
One bushel of field corn weighs 56 pounds, and if it isn’t used directly for livestock feed, it is likely to be exported or made into ethanol that is used to fuel your car. Each bushel produces 2.8 gallons of ethanol, 18 pounds of dried distillers grains (a high protein livestock feed), 14 pounds of corn gluten pellets, 1.8 pounds of corn oil and 17 pounds of carbon dioxide (used in dry ice, the beverage industry, water treatment facilities and other applications).<br />
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The remaining field corn crop is used to make other food products, manufactured goods, exported to other countries and put into storage.<br />
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Sweet corn holds a place in American dining lore. Field corn nourishes livestock, powers our cars, cleans our air, creates jobs and builds strong local economies.<br />
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So, even though you can’t slather a cob of field corn in butter and eat it, it still touches our lives in many ways.<br />
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<em><span style="font-size: x-small;">Noah Hultgren is on the Minnesota Corn Growers Association board and is a field corn, sweet corn, soybean and sugar beet farmer in Raymond, Minn., in Kandiyohi County.</span></em></span>Noah Hultgren, The Farmland Manhttp://www.blogger.com/profile/15005597825814261930noreply@blogger.comtag:blogger.com,1999:blog-4355889050688499357.post-26299061631778449102013-07-30T08:38:00.000-05:002013-07-30T08:38:10.824-05:00US Home Prices Rise 12 Percent I saw an article in the St. Paul Pioneer Press today stating that home prices in the U.S. rose 12.2 percent compared to last year, which is the biggest gain in the last 7 years - essentially prior to the start of the recession in 2007.<br />
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Mortgage rates have also been rising, so now seems like a good time for buyers and sellers to meet in the market. If you're ready to sell your house, please give me a call at 320-894-7528. I'd be happy to help you find a buyer!<br />
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Take care,<br />
Noah Hultgren<br />
<a href="mailto:noah@farmlandman.com">noah@farmlandman.com</a><br />
320-894-7528Noah Hultgren, The Farmland Manhttp://www.blogger.com/profile/15005597825814261930noreply@blogger.comtag:blogger.com,1999:blog-4355889050688499357.post-87836281375735270682013-06-04T08:32:00.002-05:002013-06-04T08:33:56.238-05:00Spring Planting is Behind ScheduleHi everyone,<br />
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The wet weather has forced a slow start to spring planting this year, but we're catching up. I saw an article in the StarTribune by Mike Hughlett that looks at the impact of the late spring. Yields will likely be lowered. <br />
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<a href="http://www.startribune.com/business/210017571.html" target="_blank"><strong>Spring planting in Minnesota is still behind schedule</strong></a><br />
<a href="http://www.startribune.com/business/210017571.html">http://www.startribune.com/business/210017571.html</a><br />
<em>Article by: </em><a href="http://www.startribune.com/bios/89522247.html" title="MIKE HUGHLETT"><em>MIKE HUGHLETT</em></a><em> , Star Tribune</em> <br />
<li class="updatedBy"><em>Updated: June 3, 2013 - 8:36 PM</em></li>
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"Wet weather continued to vex farmers last week, which means planting of Minnesota’s main crops remains behind schedule.</div>
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In fact, some farmers will likely face lower crop yields due to the late start. As of Sunday, 87 percent of corn, the state’s biggest crop, had been planted, compared with a five-year average of 98 percent, according to data released Monday by the U.S. Department of Agriculture’s <a href="http://www.startribune.com/topics/places/st-paul.html">St. Paul</a> office.</div>
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The state’s second-largest crop, soybeans, was 55 percent planted on Sunday, while the five-year average for that date is 88 percent. As for spring wheat, 92 percent was in the ground compared with a five-year average of 97 percent.</div>
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“Cool and wet weather prevailed again in Minnesota for the week ending June 2,” the USDA’s weekly crop report said. “Standing water and muddy fields continued to hamper field work.”</div>
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Minnesota farmers were plagued by a long winter and wet spring; they started May with nary a seed in the ground. Then, May turned out to be one of the gloomiest months in decades as measured by cloudy days. The Twin Cities experienced its sixth-wettest March-through-May on record.</div>
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Minnesota farmers got a big break in the weather during the week of May 12 to 19. They seeded a vast amount of acres, catching up on long-term averages for planting. But progress since May 19 has slowed significantly.</div>
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Late planting can reduce crop yields by shortening growing seasons. For corn, yields decline rapidly for every day of planting past mid-May. “Does this late planting have an effect? Most definitely,” said David Nicolai, a University of Minnesota Extension crop educator in Farmington.</div>
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Due to the late start, corn yields on average should be about 84 percent of maximum, he said. Some corn farmers in the southeastern part of the state have been hit particularly hard by the wet weather.</div>
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Soybeans can be planted throughout May without a yield penalty, but the clock starts ticking in June. </div>
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Nicolai said that U Extension recommends that for soybeans planted after June 10, farmers use a hybrid seed that’s tailored to a shorter season. But typically, that seed will lead to lower yields, he said.</div>
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The silver lining to all the rain: Minnesota’s parched topsoil has gotten a major recharge. As of Sunday, 63 percent of the state’s topsoil had adequate moisture, while 35 percent had surplus water, according to the USDA. As for subsoil moisture, 72 percent was adequate as of Sunday."</div>
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Have a great week,</div>
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Noah Hultgren</div>
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<a href="mailto:noah@farmlandman.com">noah@farmlandman.com</a></div>
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320-894-7528</div>
Noah Hultgren, The Farmland Manhttp://www.blogger.com/profile/15005597825814261930noreply@blogger.comtag:blogger.com,1999:blog-4355889050688499357.post-82960615613240237502013-04-22T21:32:00.000-05:002014-01-31T23:14:22.859-06:00Stearns County farmland prices are risingHard to believe that it is time for planting when the ground is covered with 6 more inches of fresh snow after another late season snow storm today, but I can't wait to get in the fields. I doubt I'm the only one - especially after the prefect spring we had last year.<br />
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I just read an article today about farmland prices in Stearns County, which are also ready for planting. According to this article by <a href="http://www.sctimes.com/article/20130422/NEWS01/304220019/Area-farmland-fetches-higher-property-value?nclick_check=1" target="_blank">Kirsti Marohn of the St. Cloud Times</a>, the value of prime farmland in Stearns County jumped 15 to 18 percent in the last year, according to the Stearns County assessor's office. The article is included below:<br />
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<span style="font-family: "Calibri","sans-serif"; font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-language: AR-SA; mso-bidi-theme-font: minor-bidi; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;"><span lang="EN" style="color: black; font-family: "Helvetica","sans-serif"; font-size: 16.5pt; mso-ansi-language: EN; mso-fareast-font-family: "Times New Roman"; mso-font-kerning: 18.0pt;"><a href="http://www.sctimes.com/article/20130422/NEWS01/304220019/Area-farmland-fetches-higher-property-value?nclick_check=1" target="_blank">Area farmland fetcheshigher property value</a></span></span><span lang="EN" style="color: #999999; font-family: "Helvetica","sans-serif"; mso-ansi-language: EN; mso-fareast-font-family: "Times New Roman";"></span><br />
<span lang="EN" style="color: #999999; font-family: "Helvetica","sans-serif"; mso-ansi-language: EN; mso-fareast-font-family: "Times New Roman";">Smaller
farms could find it hard to thrive as taxes, seed prices increase<o:p></o:p></span><br />
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<div class="MsoNormal" style="line-height: 6pt; margin: 0in 0in 0pt; mso-outline-level: 7;">
<span lang="EN" style="color: #666666; font-family: "Helvetica","sans-serif"; mso-ansi-language: EN; mso-fareast-font-family: "Times New Roman";">Written by </span><span lang="EN" style="color: #2c2c2c; font-family: "Helvetica","sans-serif"; mso-ansi-language: EN; mso-fareast-font-family: "Times New Roman";"><a href="mailto:kmarohn@stcloudtimes.com"><span style="color: #004276; text-decoration: none; text-underline: none;">Kirsti Marohn</span></a><o:p></o:p></span></div>
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<span lang="EN" style="color: #666666; font-family: "Helvetica","sans-serif"; line-height: 115%; mso-ansi-language: EN;">Apr
22, 2013</span></div>
<span style="font-family: Times New Roman; font-size: small;"><span lang="EN" style="color: #2c2c2c; font-family: "Helvetica","sans-serif"; font-size: 9pt; mso-ansi-language: EN; mso-fareast-font-family: "Times New Roman";">When some Stearns County
farmers opened their property valuation notices in the past few weeks, they saw
some startling numbers. </span><span lang="EN" style="color: #2c2c2c; font-family: "Helvetica","sans-serif"; font-size: 9pt; mso-ansi-language: EN; mso-fareast-font-family: "Times New Roman";">The value of prime
farmland jumped an average of 15 to 18 percent from last year, according to the
county assessor’s office.<o:p></o:p></span></span><br />
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</span><div class="MsoNormal" style="line-height: 13.1pt; margin: 0in 0in 9.8pt;">
<span style="font-family: Times New Roman; font-size: small;"><span lang="EN" style="color: #2c2c2c; font-family: "Helvetica","sans-serif"; font-size: 9pt; mso-ansi-language: EN; mso-fareast-font-family: "Times New Roman";">That means many farmers
could be paying more property taxes in 2014. But despite that, there haven’t
been large crowds of people showing up to local boards of appeals, County
Assessor Gary Grossinger said.<o:p></o:p></span></span></div>
<span style="font-family: Times New Roman; font-size: small;">
<span lang="EN" style="color: #2c2c2c; font-family: "Helvetica","sans-serif"; font-size: 9pt; mso-ansi-language: EN; mso-fareast-font-family: "Times New Roman";">Grossinger said turnout
at those meetings, where landowners can challenge their property’s assessed
value and classification, has been “probably the lightest in my 40 years.”<o:p></o:p></span><br />
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<div class="MsoNormal" style="line-height: 13.1pt; margin: 0in 0in 9.8pt;">
<span lang="EN" style="color: #2c2c2c; font-family: "Helvetica","sans-serif"; font-size: 9pt; mso-ansi-language: EN; mso-fareast-font-family: "Times New Roman";">That’s likely because
many farmers had a profitable year last year thanks to high commodity prices,
and are aware of the rising prices agricultural property has been fetching.<o:p></o:p></span></div>
<span lang="EN" style="color: #2c2c2c; font-family: "Helvetica","sans-serif"; font-size: 9pt; mso-ansi-language: EN; mso-fareast-font-family: "Times New Roman";">The average sale price of
farm land has increased from $4,000 an acre last year to $4,600 an acre so far
this year, Grossinger said. There also have been a few sales for as much as
$7,000 an acre.<o:p></o:p></span><br />
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<div class="MsoNormal" style="line-height: 13.1pt; margin: 0in 0in 9.8pt;">
<span lang="EN" style="color: #2c2c2c; font-family: "Helvetica","sans-serif"; font-size: 9pt; mso-ansi-language: EN; mso-fareast-font-family: "Times New Roman";">“People know what the
farmland’s going for,” Grossinger said. “When your neighbors sell for $7,000
(an acre) and we’ve got it on for $4,000, you’re not going to complain too
much.”<o:p></o:p></span></div>
<span lang="EN" style="color: #2c2c2c; font-family: "Helvetica","sans-serif"; font-size: 9pt; mso-ansi-language: EN; mso-fareast-font-family: "Times New Roman";">Notices are sent to
property owners every spring, informing them of their property’s estimated
market value and taxable value. That value is used to determine how much the
property taxes payable in 2014 will be.<o:p></o:p></span><br />
<br />
<div class="MsoNormal" style="line-height: 13.1pt; margin: 0in 0in 9.8pt;">
<span lang="EN" style="color: #2c2c2c; font-family: "Helvetica","sans-serif"; font-size: 9pt; mso-ansi-language: EN; mso-fareast-font-family: "Times New Roman";">Residential and
commercial land values have been flat, which probably means owners of
agricultural land will shoulder a bigger share of the property tax burden.<o:p></o:p></span></div>
<span lang="EN" style="color: #2c2c2c; font-family: "Helvetica","sans-serif"; font-size: 9pt; mso-ansi-language: EN; mso-fareast-font-family: "Times New Roman";">The level of spending by
local counties, cities, townships and school districts also affects the final
tax bill.<o:p></o:p></span><br />
<br />
<div class="MsoNormal" style="line-height: 13.1pt; margin: 0in 0in 9.8pt;">
<span lang="EN" style="color: #2c2c2c; font-family: "Helvetica","sans-serif"; font-size: 9pt; mso-ansi-language: EN; mso-fareast-font-family: "Times New Roman";">One significant shift has
been the increasing value of large tracts of prime agricultural property, while
buildable land closer to cities hasn’t been rising in value. That’s due to the
lack of interest in developing property right now, Grossinger said.<o:p></o:p></span></div>
<span lang="EN" style="color: #2c2c2c; font-family: "Helvetica","sans-serif"; font-size: 9pt; mso-ansi-language: EN; mso-fareast-font-family: "Times New Roman";">“What’s selling now is
good farmland,” he said.<o:p></o:p></span><br />
<br />
<div class="MsoNormal" style="line-height: 13.1pt; margin: 0in 0in 9.8pt;">
<span lang="EN" style="color: #2c2c2c; font-family: "Helvetica","sans-serif"; font-size: 9pt; mso-ansi-language: EN; mso-fareast-font-family: "Times New Roman";">George Hadrich, a corn
farmer in Holding Township, said the rising property values are making it
difficult for smaller farmers to survive. Hadrich said the value of his 270
acres jumped about 20 percent from last year, and he worries that his tax bill
will increase the same amount.<o:p></o:p></span></div>
<span lang="EN" style="color: #2c2c2c; font-family: "Helvetica","sans-serif"; font-size: 9pt; mso-ansi-language: EN; mso-fareast-font-family: "Times New Roman";">Although corn prices have
been higher recently, so has the price of seed corn, machinery and fertilizer,
he said.<o:p></o:p></span><br />
<br />
<div class="MsoNormal" style="line-height: 13.1pt; margin: 0in 0in 10pt;">
<span lang="EN" style="color: #2c2c2c; font-family: "Helvetica","sans-serif"; font-size: 9pt; mso-ansi-language: EN; mso-fareast-font-family: "Times New Roman";">“The two of us are still working part time
to make things work out,” the 71-year-old Hadrich said.<o:p></o:p></span></div>
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If you think now is the time to get your farmland appraised, or perhaps now is the time to sell your farmland, please give me a call at 320-894-7528. <br />
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Thanks,<br />
Noah<br />
<a href="mailto:noah@farmlandman.com">noah@farmlandman.com</a> </span><br />Noah Hultgren, The Farmland Manhttp://www.blogger.com/profile/15005597825814261930noreply@blogger.comtag:blogger.com,1999:blog-4355889050688499357.post-32666351207279866982013-04-09T17:46:00.001-05:002013-04-09T17:46:56.838-05:00Corn Growers UpdateWhat a difference a year makes! Last year at this time we had no snow, temperatures topping out in the 70s and 80s, and even some wheat planted! A sharp contrast to the snowdrifts, ice, and machinery tucked away in the shed this year...<br />
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Though the winter has been long and harsh, I've had the opportunity to travel on behalf of the Minnesota Corn Growers Association. In late February, yours truly flew to Florida for the Commodity Classic in Kissimmee, Florida. I had the opportunity to spend a few days before the convention at my aunt Jan's in nearby Lakeland soaking up the sun and some good old fashioned R and R. Besides enjoying the sunny and warm weather, I did attend many activities involved with the Commodity Classic. One of the highlights was listening to US Ag Secretary Tom Vilsack speak on farm issues. Also, National Corn Growers held their 1st session of Corn Congress, where I am a voting delegate for Minnesota. It is similar to Congress as each state has a different number of voting delegates depending on membership. Minnesota only trails Iowa in representation. We will have our 2nd session in July. There are many issues that shape our Resolutions booklet. There is always good debate (some long-winded) that truly shows our grass roots organization.<br />
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In March, I traveled to Washington D.C. with the same fly-in group as last year. Minnesota Corn was joined by the Southwest Council, which consists of farmers, bankers, insurance groups, and other commodity groups including Rice, Cotton and Sugar from Texas, Mississippi, new Mexico, Colorado, Oklahoma, and Louisiana. We believe that showing our unity within the ag sector both by commodity and geography represents a strong view. We had 100 visits to the House and Senate offices. The visits consisted of a Congressman or their ag liaison. Our message included passing a farm bill now, protecting and strengthening crop insurance, and keeping a strong commodity title in the farm bill. Our lobbying firm Combest and Sell also orchestrated fundraisers for key legislators and champions of ag that I was able to attend. They included House Ag Chair Frank Lucas (R-OK), Rep. Mike Conaway (R-TX), Senate Ag Ranking member Thad Cochran (R-MS), and House Ag Ranking member Collin Peterson (D-MN). See the picture below!<br />
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<a href="http://4.bp.blogspot.com/-v2wbJ11VGp4/UWSZlGScEKI/AAAAAAAAACU/h2O1CWFdDzI/s1600/peterson.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="300" src="http://4.bp.blogspot.com/-v2wbJ11VGp4/UWSZlGScEKI/AAAAAAAAACU/h2O1CWFdDzI/s400/peterson.png" width="400" /></a></div>
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We also had our day on the Hill in March at the capitol in St. Paul. Our Minnesota Corn group visited with state legislators. The goal was to have representation visit a legislator in every county. I personally visited with Rep. Mary Sawatsky and Sen. Lyle Koenen, as they are in my district.<br />
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Having good dialogue and voicing our concerns is very important as the amount of people directly involved in agriculture keeps shrinking. I have enjoyed my 2 years as a director for Minnesota Corn Growers. We have such a good story to tell in agriculture and I'm proud to be a farmer.<br />
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Regards,<br />
Noah<br />
<a href="mailto:noah@farmlandman.com">noah@farmlandman.com</a><br />
320-894-7528Noah Hultgren, The Farmland Manhttp://www.blogger.com/profile/15005597825814261930noreply@blogger.com