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

Another good year?

The Minneapolis Star Tribune ran an article today looking at the prospects for "Another Bumper Year for Farmers", written by Mike Hughlett.

According to Hughlett's article, "With planting just around the corner, Minnesota farmers are feeling particularly optimistic. They're coming off bumper crops in 2010, and the federal government is predicting record farm income for the agricultural marketing year that ends Aug. 31. Perhaps best of all, prices for major grains are currently near highs not seen since the big commodity price run-up of 2008."

The article notes a couple reasons for concern, however. Apparently grain reserves are low, perhaps meaning "a bad crop could propel already high corn and soybean prices to heights that would hammer the livestock industry with higher feed prices and ultimately hurt consumers through higher food prices." Bad weather would obviously negatively impact the industry as well.

As farmers are gearing up for the planting season, the article notes that "There's extra reason for getting fired up this spring: Corn and soybean prices, as measured by May-delivery futures contracts, are respectively about 65 percent and 45 percent higher than they were a year ago." 

The article includes some quotes from Greg Schwarz, who grows corn and soybeans on about 1,000 acres near Le Sueur, and is president of the Minnesota Corn Growers Association. He believes that farmers are in a good position to lock in good profits, which is a "good feeling" for farmers. 

"Farmers across the country are considerably more positive this March than they were a year ago, according to a survey by DTN/The Progressive Farmer," the article continues. "The study is based on farmers' attitudes toward their input costs, profit margins and household income."

Obviously, this is a good time to be in farming, and that is good for farmland values. If you are interested in having your farmland appraised, or you think now is the time to sell your farmland, please contact me. I can be very helpful in meeting your farmland real estate needs.

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

p.s. Congratulations to the MACCRAY boys basketball team for finishing 3rd in the state Class A tournament last weekend. We went down and watched all three games - way to go Wolverines!