Friday January 30 Cattle Inventory + Ag News

NEBRASKA JANUARY 1 CATTLE INVENTORY UP 1 PERCENT

All cattle and calves in Nebraska as of January 1, 2015 totaled 6.30 million head, up 1 percent from January 1, 2014, according to the USDA’s National Agricultural Statistics Service.

All cows and heifers that had calved totaled 1.84 million head, down 1 percent from last year.

Beef cows totaled 1.79 million head, down 1 percent from last year.

Milk cows totaled 54,000 head, up 2 percent from January 1, 2014.

All heifers 500 pounds and over totaled 1.71 million head, up 1 percent from last year.

Steers weighing 500 pounds and over totaled 2.36 million head, up 3 percent from last year.

Bulls weighing 500 pounds and over totaled 95,000 head, unchanged from last year.

Calves under 500 pounds totaled 295,000 head, unchanged from January 1, 2014.

All cattle on feed fed for slaughter in Nebraska feedlots totaled 2.55 million head, up 4 percent from the previous year. 

The 2014 calf crop totaled 1.61 million head, down 4 percent from 2013.



IOWA CATTLE INVENTORY INCREASES

All cattle and calves in Iowa as of January 1, 2015, totaled 3.90 million head, according to the latest USDA, National Agricultural Statistics Service – Cattle report. This is up 100,000 head from January 1, 2014. Beef cows, at 920,000 head, were 3 percent above last year. Milk cows, at 210,000 were up 5,000 head from last year.

All heifers 500 pounds and over were up 2 percent at 940,000 head. Heifers for beef cow replacement were up 6 percent from 2014 at 170,000 head; heifers for milk cow replacement, at 130,000 head, were up 1 0,000 head from the previous year; and all other heifers were unchanged at 640,000 head.

Steers weighing 500 pounds and over were up 3 percent from last year at 1.31 million head. Bulls weighing 500 pounds and over were unchanged from a year ago at 60,000 head. Calves under 500 pounds on January 1, 2015, totaled 460,000 head, up 2 percent from last year s historical low of 450,000.

The 2014 calf crop was estimated at 1.05 million head, up 3 percent from the 2013 calf crop. Cattle and calves on feed for slaughter in all feedlots on January 1, 2015 totaled 1.22 million head, down 1 percent from one year ago.



January 1 U.S. Cattle Inventory Up 1 Percent

All cattle and calves in the United States as of January 1, 2015 totaled 89.8 million head, 1 percent above the 88.5 million on January 1, 2014.   All cows and heifers that have calved, at 39.0 million, were up 2 percent from the 38.3 million on January 1, 2014.
  • Beef cows, at 29.7 million, were up 2 percent from January 1, 2014.
  • Milk cows, at 9.3 million, were up 1 percent from January 1, 2014.

Other class estimates on January 1, 2015 and the change from January 1, 2014, are as follows:
  • All heifers 500 pounds and over, 19.2 million, up 1 percent.
  • Beef replacement heifers, 5.8 million, up 4 percent.
  • Milk replacement heifers, 4.6 million, up 1 percent.
  • Other heifers, 8.8 million, down slightly.
  • Steers weighing 500 pounds and over, 15.8 million, up 1 percent.
  • Bulls weighing 500 pounds and over, 2.1 million, up 3 percent.
  • Calves under 500 pounds, 13.7 million, up 1 percent.
  • Cattle and calves on feed for slaughter in all feedlots, 13.1 million, up 1 percent.
  • The combined total of calves under 500 pounds, and other heifers and steers over 500 pounds outside of feedlots was 25.2 million, up 1 percent.

Calf Crop Up 1 Percent
The 2014 calf crop was estimated at 33.9 million head, up 1 percent from 2013. Calves born during the first half of 2014 were estimated at 24.6 million, up slightly from 2013.



Making Calving Season Easier for You and Your Cows and Calves
Steve Tonn, UNL Extension Educator, Washington County

Getting more cows to calve during the daytime would make calving season a lot easier and less stressful for you.  You still have to do night checks but if you can have more calves born during the daylight than at night that would be plus.

It is generally accepted that adequate supervision at calving has a significant impact on reducing calf mortality. Adequate supervision has been of increasing importance with the higher price of live calves at sale time. On most farms, supervision of the first calf heifers will be best accomplished in daylight hours and the poorest observation takes place in the middle of the night.

The easiest and most practical method of inhibiting nighttime calving at present is by feeding cows at night; the physiological mechanism is unknown, but some hormonal effect may be involved. Rumen motility studies indicate the frequency of rumen contractions falls a few hours before parturition. Intraruminal pressure begins to fall in the last 2 weeks of gestation, with a more rapid decline during calving. It has been suggested that night feeding causes intraruminal pressures to rise at night and decline in the daytime.

In a Canadian study of 104 Hereford cows 38.4% of a group fed at 8:00 am and again at 3:00 pm delivered calves during the day, 79.6% of a group fed at 11:00 am and 9:00 pm. A British study utilizing 162 cattle on 4 farms compared the percentages of calves born from 5:00 am to 10:00 pm to cows fed at different times. When cattle were fed at 9:00 am, 57% of the calves were born during the day, versus 79% with feeding at 10:00 pm. In field trials by cattlemen utilizing night feeding when 35 cows and heifers were fed once daily between 5:00 pm and 7:00 pm, 74.5% of the calves were born between 5:00 am and 5:00 pm. In the most convincing study to date, 1331 cows on 15 farms in Iowa were fed once daily at dusk, 85% of the calves were born between 6:00 am and 6:00 pm. Whether cows were started on the night feeding the week before calving started in the herd or 2 to 3 weeks earlier made no apparent difference in calving time.

On many farms, it is physically impossible to feed all of the cows after 5:00 pm. In those instances, try to feed the mature cows earlier in the day, then feed the first calf heifers at dusk. The heifers, of course, are the group of females that are of greatest need of observation during the calving season.

What about the situation where large round bales of hay are being fed to the cows and heifers?  If the cows have unrestricted access to the hay around the clock, then the best method of influencing the time of calving is via the time of day that the supplement is being fed.  At Oklahoma State University, the switch from supplement feeding in daytime to late afternoon/early evening feeding encouraged 72% of the cows to calve between 6 AM and 6 PM.  These cows had 24/7 access to large round bales of grass hay.  Before the change was made, when supplement was fed during the morning hours, the ratio of night time versus day time calving was nearly even, with half of the calves born at night and half during the day.

Another idea would be to control access to the large round bales.  The hay is fed within a small enclosed pasture or lot near a larger pasture where the cows graze during the day.  In the evening, the gate to the area where the hay is placed is opened and the cows are allowed to enter and consume hay during the night.  The next morning, they are moved back to the daytime pasture to graze until the following evening.  In this manner, the nighttime feeding is accomplished with hay or silage only.

Whatever method fits your operation should be utilized.  The advantage of heifers/cows being observed with daylight during calving is obvious.  Also during winter months, baby calves born in the warmer part of the day with radiant heat from the sun to reduce cold stress, have a better chance for early colostrum consumption and therefore survival.



Nebraska Cattlemen Announces Legislative Priorities

Nebraska Cattlemen (NC) today announced its priorities for the 2015 Legislative Session. In addition to LB 85 and LB 623 (previously announced), NC will support LB 106 and monitor various tax bills related to property tax relief.

“Nebraska Cattlemen looks forward to working with members of the Nebraska Legislature to lower property taxes and provide the beef industry opportunities for growth,” said NC President Dave McCracken. “Our priority bills will help to ensure our state’s economy will continue to benefit from a thriving beef industry.”

Nebraska Cattlemen Priorities
LB106, introduced by Senator Dan Watermeier, adopts the Livestock Operation Siting and Expansion Act and changes powers of counties relating to zoning.

LB 85, introduced by Senator Al Davis, is a bill regarding fees for the Nebraska Brand Committee. In addition to voicing support for the bill earlier this week, NC encouraged the Nebraska Brand Committee (NBC) and members of the Nebraska Agriculture Committee to review the fee structure as written and suggested an amendment be made to reflect equitable payment for equitable services received across the beef cattle industry.

LB 623, introduced by Senator Jeremy Nordquist, provides immigrants with deferred action for childhood arrival (DACA) status the opportunity to obtain Nebraska driver’s licenses.

A number of tax relief measures will be monitored to ensure comprehensive property tax relief for beef producers throughout the state. NC’s Legislative Committee prioritized the following tax relief concepts which will dictate the group’s support:
a)      Increased money in the property tax credit cash fund
b)      Decreased valuations for real agricultural property
c)      Modifications to the current school funding equation to assist rural school districts in                    receiving more consistent revenue
d)     Long term property tax reduction solutions



USDA NRCS Accepting Applications for Conservation Stewardship Program

The U.S. Department of Agriculture’s Natural Resources Conservation Service has $100 million available this year through the Conservation Stewardship Program (CSP). CSP is a voluntary program that provides financial and technical assistance to help farmers and ranchers conserve and enhance soil, water, air, and related natural resources on their agricultural and forestry land.

Although applications are accepted all year, farmers, ranchers and forest landowners should submit applications by Feb. 27, 2015, to ensure they are considered for this year’s funding (applications received after that date will be considered for future funding). This year’s investment may result in the enrollment of up to 7.7 million acres in the program by private landowners.

Brad Soncksen, acting NRCS state conservationist in Nebraska, encourages Nebraska farmers and ranchers to not miss out on this opportunity.

“The Conservation Stewardship Program is unique. CSP participants will receive an annual land use payment for the environmental benefits they produce on their operations. Under CSP, participants are paid for conservation performance - the higher the operational performance, the higher their payment,” Soncksen said.

According to Soncksen, CSP has been a very successful program for Nebraska’s farmers and ranchers. Over 2,300 CSP contracts occur in all 93 counties and cover 5.1 million acres in Nebraska.

“CSP is popular in Nebraska because farmers and ranchers don’t have to take land out of production to participate. CSP helps conserve natural resources on working lands. Keeping land in production while protecting natural resources creates a win-win for all Nebraskans. CSP makes it possible to produce crops and livestock while also improving water quality, soil health and wildlife habitat,” Soncksen said.

CSP is available statewide to individual landowners, legal entities, and Indian tribes. Eligible land includes cropland, grassland, prairie, improved pastureland, non-industrial private forestland, and agricultural land under the jurisdiction of an Indian tribe. Contracts are set at five years and include all the land controlled by an operator.

The 2014 Farm Bill brought changes to CSP including expanding conservation activities, called enhancements, available to participants to protect natural resources on their land. These enhancements include cover crops, intensive rotational grazing, wildlife friendly fencing, and more. There will also be additional funding opportunities available to irrigators through the Ogallala Aquifer Initiative.

Applications should be submitted to local NRCS offices. As part of the CSP application process, applicants will work with NRCS personnel to complete a resource inventory of their land, which will help determine the performance of existing and new conservation activities. The applicant's conservation performance will be used to determine eligibility, ranking and payments.



IOWA PRICES REPORT

The December 2014 average price received by farmers for corn in Iowa was $3.79 per bushel according to the latest USDA, National Agricultural Statistics Service – Agricultural Prices report. This is up $0.16 from the November price, but $0.53 lower than December 2013.

The December average price received by farmers for soybeans, at $10.00 per bushel, was $0.20 less than the November price and $3.00 lower than the December 2013 price.

All hay prices in Iowa averaged $133.00 per ton in December, $36.00 per ton less than December 2013. Alfalfa hay prices fell $42.00 per ton from one year ago, to $153.00 and other hay prices were $26.00 per ton lower than last year, at $104.00.

The December average price was $20.90 per cwt for milk, down $3.00 from November, and $1.40 per cwt below one year ago. Prices for replacement milk cows averaged $2,030 in January.



December U.S. Farm Prices Received Index Down 1 Point

The December Prices Received Index (Agricultural Production), at 100, based on 2011=100, decreased 1 point (1.0 percent) from November. At 82, the December Crop Production Index is up 1 point (1.2 percent). At 127, the Livestock Production Index decreased 7 points (5.2 percent). Producers received lower prices for milk, broilers, lettuce, and cattle. Higher prices were received for corn, eggs, soybeans, and grain sorghum. In addition to prices, the indexes are impacted by the five-year average monthly mix of commodities producers market. Increased monthly movement of wheat, broilers, oranges, and milk offset the decreased marketing of corn, calves, grapes, and soybeans.

The Prices Received Index is unchanged from December 2013. The Food Commodities Index, at 114, decreased 6 points (5.0 percent) from the previous month but increased 5 points (4.6 percent) from December 2013.

Crop Production:
The December index, at 82, increased 1.2 percent from November but is 9.9 percent below December 2013. Index increases for oilseeds & grains more than offset the index decreases for fruit & tree nut production and vegetable & melon production.

Feed grain: The December index, at 64, is up 6.7 percent from last month but is 14 percent below a year ago. The corn price, at $3.78 per bushel, is up 20 cents from last month but is down 63 cents from December 2013. At $7.33 per cwt, sorghum grain is 74 cents above November but is 16 cents below December a year earlier.

Food grain: At 86, the index for December is 2.3 percent lower than the previous month and 12 percent below a year earlier. The December price for all wheat, at $6.11 per bushel, is up 6 cents from November but is 62 cents below December 2013.

Oilseed: At 82, the index for December is up 1.2 percent from November but is 20 percent lower than December 2013. The soybean price, at $10.30 per bushel, increased 10 cents from November but is $2.70 below December a year earlier.

Livestock production:
The index for December, at 127, is 5.2 percent below the previous month but is up 13 percent from December a year earlier. Compared with a year ago, prices are higher for cattle, market eggs, calves,
hogs, broilers, and turkeys. The price for milk is down from a year earlier.

Meat animal:  At 134, the December index is down 4.3 percent from the previous month but is 23 percent higher than a year earlier. At $64.30 per cwt, the December hog price is down $2.40 from November but is $2.80 higher than a year earlier. The December beef cattle price of $164 per cwt is down $3.00 from the previous month but is $34.00 higher than December 2013.

Dairy: The index for December, at 101, is down 11 percent from the previous month and 7.3 percent lower than December a year earlier. The December all milk price of $20.40 per cwt is down $2.60 from November and down $1.60 from December 2013.

December Prices Paid Index Unchanged
The December Index of Prices Paid for Commodities and Services, Interest, Taxes, and Farm Wage Rates (PPITW), at 111 percent (2011=100), is unchanged from November but is 5 points (4.7 percent) above December 2013. Lower prices in December for feeder cattle, LP gas, diesel, and gasoline offset higher prices for complete feeds, feed grains, feeder pigs, and supplements.



Study Examines Economic Impact of Increased Investment in Inland Waterways System

The success of the American soybean farmer, and the broader economy, relies on inland waterway system—which provides close proximity to productive farm ground and the ability to accommodate commercial traffic.

But the condition of the nation’s locks and dams continues to deteriorate due to underinvestment of federal funding. The National Waterways Foundation (NWF) recently commissioned and released a two-year study examining the waterways’ national economic return on investment and the need for and benefits of an accelerated program of waterways system improvements that sustain and create American jobs.

“The research in this important study sponsored by the National Waterways Foundation is an effort to help develop a more effective framework for policy-makers to understand and measure the current navigation system and look to future possibilities and job creation if proper infrastructure investments are made,” said Mark Knoy, National Waterways Foundation Chairman in a Waterways Council, Inc. news release this week.

According to the news release, the study by the University of Tennessee and the University of Kentucky, “Inland Navigation in the United States: An Evaluation of Economic Impacts and the Potential Effects of Infrastructure Investment” (November 2014), evaluates the inland navigation system as it is currently funded and configured, and as it might be through renewed infrastructure investment. It begins with a basic analytical framework examining navigation’s role as a productive input in various industrial processes and reflects actual, real-world economic interactions and consequences if the system were to suddenly shut down and then if proper infrastructure investments were made.

The study found:
-    Investment in badly needed modernization improvements to our inland waterways’ aging lock and dam infrastructure could lead to 350,000 job-years of new, full-time employment with a present value of more than $14 billion over the 10-year period examined in the study.
-    If we invest in our inland waterways, we can sustain 541,000 jobs and more than $1 billion in new job income annually.
-    If 21 priority navigation projects could be completed at an estimated cost of $5.8 billion total, the 20-year sum of related economic output activity would exceed $82 billion.



National Biodiesel Board Calls for EPA to Act on RFS

The National Biodiesel Board on Friday asked the EPA to immediately establish biodiesel volumes under the Renewable Fuel Standard as it highlighted fallout from the Administration’s ongoing failure to establish functioning renewable fuels policy for the second consecutive year.

Industry leaders said the EPA’s recent decision to allow streamlined imports of biodiesel from Argentina under the RFS has only added new urgency to the need for stable policy.

In a letter to EPA Administrator Gina McCarthy sent Friday, former biodiesel producer and NBB Governing Board Member Ben Wootton challenged McCarthy’s recent comments suggesting that the RFS delays haven’t hurt renewable fuels industries. Wootton lost his Pennsylvania biodiesel plant, Keystone Biofuels, in bankruptcy last year as a result of RFS uncertainty. In his letter, he explained to McCarthy how the loss of his plant also forced him to lay off 30 employees and caused him to lose his daughters’ college funds and his retirement savings.

Wootton pointed to a statement late last year in which McCarthy said: “While I would have preferred to have this rule done earlier, it hasn't slowed down that industry that I can see.”

“I would invite Administrator McCarthy to come to my shuttered plant and talk to some of the laid off workers, or to visit practically any biodiesel plant across the country to see the damage that is taking place,” Wootton said.“It is obvious that this administration doesn’t understand the severe damage that the uncertainty surrounding this rule has caused our industry and the thousands of employees it represents. It is beyond frustrating that an Administration I have strongly supported has inflicted so much harm on an industry it says it supports.”

The EPA has failed to establish biodiesel volume requirements under the RFS for 2014, 2015 and 2016. Under statute, all three years’ volumes should have been set. While certain sectors of the renewable fuels industry have fared better in absorbing the RFS uncertainty – particularly more mature industries such as corn ethanol – the delays have been disastrous for new industries still getting off the ground. This is particularly true for biodiesel, the first EPA-designated Advanced Biofuel under the RFS to reach commercial-scale production nationwide.

Exacerbating the difficulties facing the industry, the EPA earlier this week approved a streamlined approach for allowing imports of Argentinian biodiesel into the US – fast-tracking foreign imports under the RFS that are subsidized by Argentinian tax policy and are likely to undercut U.S. production. The decision has been perceived by biodiesel producers and the domestic soybean industry as adding insult to injury.

“It is shocking that at a time when our renewable fuels policy is in a shambles, the EPA has essentially greenlighted biodiesel imports from Argentina to qualify for the RFS, with very little oversight or verification that the resources used to make the fuel will be grown under the normal RFS sustainability requirements,” NBB CEO Joe Jobe said. “We have done everything we can for two years to help this Administration develop reasonable policy that matches President Obama’s stated support for renewable fuels, but we are at wit’s end. We are desperately searching for any indication that this support actually exists.”

Added Wootton: “Based on years of statements by President Obama and Administrator McCarthy, we all believed we had an ally in this Administration. I and so many others in a similar situation are stunned and frustrated by this lack of leadership and the failure to act.”

Recent EPA statistics show that the U.S. biodiesel market dropped in 2014, from a high of 1.8 billion gallons in 2013 to 1.75 billion gallon last year. But the total volumes – which remained steady only because the EPA last year signaled that it would finalize a strong RFS – mask the fact that dozens of biodiesel plants have stopped production or laid off workers in recent months. The most recent casualty was Green Earth Fuels, a large plant outside Houston that filed for bankruptcy earlier this month.

“Our overall production numbers were down only slightly for 2014, but that is an illusion,” Jobe said. “This is an industry hanging on broken promises and leveraging everything waiting for the EPA to comply with the law. We have dozens of producers just barely hanging on.”



IOWA SHEEP AND LAMB INVENTORY UP 13%

All sheep and lambs inventory in Iowa as of January 1, 2015, totaled 175,000 head, bouncing back to the same inventory level as 2013 according to the latest USDA, National Agricultural Statistics Service – Sheep and Goats report. The sheep and lambs inventory was up 13 percent from last year.

Total breeding stock, at 125,000 head, was 14 percent more than one year ago. Compared to last year, market sheep and lambs increased 11 percent to 50,000 head. The lamb crop for 2014 increased 11 percent to 150,000. Wool production for the State was 900,000 pounds, up 6 percent from last year.

IA GOAT INVENTORY 3RD HIGHEST IN US
Milk goat inventory in Iowa as of January 1, 2015, at31,000 head, was the third largest in the United States according to the latest USDA, National AgriculturalStatistics Service – Sheep and Goats report.  Total milkinventory was up 3 percent from January 2014. Total meat and other goat inventory was 25,500 head, anincrease of 2 percent from the previous year.



Total U.S. Sheep and Lamb Inventory Up 1 Percent

All sheep and lamb inventory in the United States on January 1, 2015, totaled 5.28 million head, up 1 percent from 2014. Breeding sheep inventory increased to 3.94 million head on January 1, 2015, up 1 percent from 3.90 million head on January 1, 2014. Ewes one year old and older, at 3.11 million head, were 1 percent above last year. Market sheep and lambs on January 1, 2015, totaled 1.35 million head, unchanged from January 1, 2014. Market lambs comprised 94 percent of the total market inventory. Twenty-four percent were lambs under 65 pounds, 12 percent were 65 - 84 pounds, 20 percent were 85 - 105 pounds, and 38 percent were over 105 pounds. Market sheep comprised the remaining 6 percent of total market inventory.

The 2014 lamb crop of 3.44 million head, was up 2 percent from 2013. The 2014 lambing rate was 111 lambs per 100 ewes one year old and older on January 1, 2014, up 4 percent from 2013.

Shorn wool production in the United States during 2014 was 26.7 million pounds, down 1 percent from 2013. Sheep and lambs shorn totaled 3.68 million head, also down 1 percent from 2013. The average price paid for wool sold in 2014 was $1.46 per pound for a total value of 38.9 million dollars, down 1 percent from 39.2 million dollars in 2013.

Sheep death loss during 2014 totaled 220 thousand head, a decrease of 2 percent from 2013. Lamb death loss increased 1 percent from 360 thousand head in 2013 to 365 thousand head in 2014.

Total Goat and Kid Inventory Up 2 Percent
All goat inventory in the United States on January 1, 2015, totaled 2.68 million head, up 2 percent from 2014. Breeding goat inventory totaled 2.20 million head, up 2 percent from 2014. Does one year old and older, at 1.65 million head, were 3 percent above last year's number. Market goats and
kids totaled 471 thousand head, up 2 percent from a year ago.

Kid crop for 2014 totaled 1.71 million head for all goats, up 2 percent from 2013.

Meat and all other goats totaled 2.15 million head on January 1, 2015, up 2 percent from 2014. Milk goat inventory was 365 thousand head, up 2 percent from January 1, 2014, while Angora goats were up 8 percent, totaling 160 thousand head.

Mohair production in the United States during 2014 was 880 thousand pounds. Goats and kids clipped totaled 159 thousand head. Average weight per clip was 5.5 pounds. Mohair price was $4.85 per pound with a value of 4.27 million dollars.



Location and Quality Driving Current Land Values

     As 2014 came to a close, land values had stabilized from the double digit increases of the past few years, according to Farmers National Company, the nation’s leading farm and ranch real estate company. Location and quality of land continue to be main drivers of prices for a given tract of land.  The lower supply of land for sale and the continued demand for agricultural land is maintaining general stability of the land market. 

     “While lower grade land has seen drops in value near 15 percent from recent highs, top quality crop and grazing land still bring solid prices as owner operators and investors seek to expand their operations with the most productive land,” said Randy Dickhut, AFM, Vice President of Real Estate Operations of Farmers National Company.

     According to Farmers National Company, the supply of land for sale is less than in the past few years as there is no tax policy change driving sales and landowners remain tight holders of the asset. “Land is viewed as a long term asset and owners consider agricultural land a stable investment in a changing world,” said Dickhut.

     Demand for cropland and grazing land from owner operators remains good, but buyers are being more realistic in what they will pay given lower grain prices. Sellers are having to be realistic in evaluating the quality of their land and the expected selling price in order to have a successful sale.

     Despite leveling or moderately decreasing land values overall, Farmers National Company has seen strong prices paid for specific properties within the last 60 days based on local competition and the desire for quality. According to Dickhut, farmland seldom comes up for sale in many locations, therefore local producers are willing to pay top dollar to grow their operation and asset base. 

     Recent value adjustments in the land market still leave land values at historically high levels in the longer term view. Price softening is happening, but at different rates depending on the region, prices for major commodities in that region, and quality of the land. Profitability from record crop incomes supported by insurance coverage, has kept farm operations in the black and producers interested in adding land.

     “Buyers are being more realistic when considering land purchases which has reduced the fervor of rapidly escalating prices seen at land auctions in recent years,” said Dickhut. “Owner operators continue to be the main purchasers of agricultural land comprising nearly 90% of buyers in many areas.”

     Investors are showing up in the market to purchase land, but are also being realistic in the timing of their purchases and the long term outlook for agricultural land.

     Profitability in recent years has left many farm owners cash rich and opting for land purchases for personal and business investments. The tangibility of land and the ability to grow their operation makes land a preferred investment for the owner operator. Producers are being more realistic with their land purchases as they give more attention to the economics of the asset and seek increased financing.

     Even with lower grain prices, record grain harvests will keep net farm income quite positive in 2015. This factor should keep the current market fairly stable for the time being.

     “As we forecast further out into late 2015 and 2016, circumstances could shift,” said Dickhut.      One of the factors that could impact values moving into 2015 is the potential for rising interest rates. If rates increase gradually, as predicted, market impact should be minimal in the short term.

     Longer term, world demand for water, food, fuel and fiber will determine commodity prices which will affect future land values.  As long as the supply of land for sale remains low and demand continues to be present, land values will be supported, according to Dickhut.

     Farmland investment is still a positive long term opportunity for most producers and investors. Despite slight downward shifts, the land market remains stable and supports business expansion for farm operators looking to grow their businesses and investors wanting a long term asset.