Harvest Higher Land Prices

Harvest is flying along this year - the weather has really been cooperative. I can't remember another year when things have run as smoothly and gone as quickly. I saw a progress report from the USDA that showed the whole state is enjoying a fast harvest.

According to the last crop progress report, over 95 percent of the state's soybean crop was harvested, which is way up from just 69 percent last year and a 55 percent average from past years. Likewise, corn was nearly 80 percent harvested, compared to 16 percent last year and only 11 percent on average.

The sugarbeet harvest is also running ahead of average, while the dry bean harvest is pretty much complete.

This should be another good year for agriculture, which should again be good for land prices. I've seen a lot more listings for farmland auctions recently, which can be a great way to get a great price for your land. North Central Realty offers auction services for farmland and often brings in high prices.

As farmers continue to bring in good yields in record times, the opportunity to sell can also be harvested. Please contact me at noah@farmlandman.com or 320-894-7528 to learn more about how I can help with your land sale.

Have a great week,
Noah Hultgren
noah@farmlandman.com

Minnesota corn yields are the best

I saw an excellent article in the Pioneer Press by Tom Webb the other day about how Minnesota's corn yields are the best in the Midwest. Thankfully our state - especially our region -  wasn't hit as hard by the drought as states like Iowa and Illinois. 

But not everyone is receiving the same results. In West Central Minnesota, our yields look good and the corn is relatively dry, which should make for a good harvest. According to Webb's article, data so far show average yields of 156 bushels an acre, but the range is anywhere from 20 bushels to 200 bushels per acre. 

According to the article, "the U.S. Department of Agriculture issued its September crop production forecast. After the worst drought in decades, U.S. corn production was forecast to be a disappointing 123 bushels an acre. Minnesota has clearly fared far better than most states. Its forecast of an average 156 bushels an acre is the highest among the major corn-growing states, and it means $9 billion worth of corn awaits the combines -- a colossal payday for many farmers this fall."

Combine that with corn prices that have risen near $8 a bushel,  and this should be a pretty good year for farmers with good corn yields. That should raise farmland sales and rental prices for the next year. If you'd like an appraisal on your farmland, I'd be happy to give you a better idea of your current value, and maybe some idea of where the market is going. 

If you're ready to sell your farmland, I am an expert in farmland real estate sale including 1031 tax deferred exchanges. Our company also does farmland auctions, which have been netting outstanding prices for our sellers this year. 

Please contact me at 320-894-7528 or noah@farmlandman.com for more information or to set up an appointment. I'd enjoy the chance to work for you.

Sincerely,

Noah Hultgren
The Farmlandman.com
noah@farmlandman.com

Crop Insurance

Last week I read a thoughtful blog post from Farm Policy Facts, a "coalition of farmers and commodity groups created to educate Congress and Americans about agriculture's contribution to a strong and vibrant United States." They focused on some of the misunderstandings about crop insurance.

One popular misconception is that farmers purchase crop insurance policies to guarantee they will make a profit - which as the author states is "an assertion that anyone with any experience in the high-cost, high-risk farming business has immediately dismissed as ridiculous."

The blog post includes a telling quote from Jason Williamson, who is a crop insurance agent from Payne, Ohio, which provides some levity to the argument: "Do you think that drivers who purchase car insurance are secretly hoping for a car wreck to get a check from the insurance company? It's an absurd idea. You purchase insurance for protection, not to make a buck."

Every farmer I know is dedicated to their craft and would prefer to never need crop insurance. But like with car insurance, it is a prudent aspect of business that can help protect against things we can't control - like the weather, or droughts. After a house, a car is often a family's largest expense/investment. It would be hard for many families to simply replace a car after a car wreck if they didn't have some form of insurance; imagine how hard it would be to replace an entire crop!

Thanks to Farm Policy Facts for sharing this meaningful information with people!

Sincerely,
Noah Hultgren
320-894-7528
noah@farmlandman.com