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

Useful Advice for Farmers who Rent Land

I recently read an interesting article in the AgWeek publication about new ways to improve the relationship between farmers who rent land and the landowners they rent from.

The author noted that winter is typically the time of year when farmers and landowners are negotiating rental agreements, and highlighted a couple ideas on how to forge a stronger partnership. Consider these solutions from Willie Huot, a North Dakota extension educator "who has studied land rent negotiations and advises farmers on how to approach them":

• Consider creating a newsletter to update landlords on what’s happening on the farm and in agriculture. - “It’s an educational effort and a communications tool,” Huot says.
• Resumes are another potential tool. Producers can list their agricultural accomplishments and abilities, much the way a job seeker does.

These could be great ways to keep in contact with landowners by giving them more insight into the type of farming operation being run and the plans for the future.

If you are looking for help selling your farmland or in navigating the ever-changing rental market, please give me a call at 320-894-7528.

Have a great day!

Noah Hultgren

The FarmlandMan

noah@farmlandman.com

Sugar beet summary

I was just reading through the summary of the 2010 review from the Southern Minnesota Beet Sugar Cooperative in the January 2011 edition of "The SugarBeet Grower Magazine."


SMBSC's Todd Geselius reported that SMBSC's growers ended the 2010 crop year by delivering 3,094,801 tons from 114,893 harvested acres, resulting in an average yield of 26.94 tons per acre. "This is the second largest crop we have grown at Southern Minnesota, surpassed only by the 2009 crop," noted Geselius. "The sugar content ended the season at 16.23%." Overall, it was considered a great crop year.


I compared that to the results from some of the other sugar companies that reported in, and SMBSC seemed to be in line. For example, American Crystal Sugar Company reported 26.3 tons per acre (which was the highest average yield in their history) and just over 18% sugar content. The Michigan Sugar Company averaged 26.07 tons per acre (which was also second highest in their history) and 18.17% for grower sugar. Minn-Dak Farmers Cooperative harvested 3,108,000 tons of sugarbeets with an average of 27.15 tons per acre, with average sugar content of 16.8%.


Successful harvests are likely to continue to push land values and rents higher in the future. To learn more about your options for seeling or renting your land, please contact me at 320-894-7528 or noah@farmlandman.com. I'd love to help you make the most of this market!


Take care,
Noah Hultgren
The FarmlandMan
www.farmlandman.com