Farmland Values Continue Steady, Gradual Decline
A steady but gradual decline in farmland values continued into the first half of 2016 across the states served by Farm Credit Services of America (FCSAmerica). Iowa has experienced the greatest decline in average farm values – about 20 percent since the market’s 2013 peak. Nebraska and South Dakota farmland has declined by a more modest 12.5 and 4.8 percent respectively during the same period.
Demand for farmland also is down. Public land auctions declined 8 percent in the first six months of 2016 compared to the previous year. This percentage includes public auctions in Iowa, Nebraska, South Dakota and Wyoming, as well as Kansas, where FCSAmerica works in alliance with Frontier Farm Credit to monitor farmland values.
Across the five states, lower farm incomes and per-acre profitability continue to put downward pressure on farmland values. Unlike last year, when a strong livestock market led to increased demand for pastureland, values on both pasture and cropland are generally down in 2016. This reflects lower commodity prices for grain as well as cattle.
Twelve-Month Change in Value
State Cropland Pasture
Iowa -5.7% -1.8%
Kansas -0.9% 0.8%
Nebraska -4.7% -2.2%
South Dakota -3.2% -3.1%
Wyoming 1.1% 20.8%
The fall in commodity prices has outpaced the rate of decline in farmland values and FCSAmerica continues to forecast a soft landing for agriculture as the current market correction brings supply and demand back in line.
Below is the average change in benchmark farm values, with the number of benchmark farms appraised in each state noted in parenthesis:
State Six Month One Year Five Year Ten Year
Iowa (21) -4.0% -5.6% 19.6% 139.4%
Kansas (7) -2.0% -0.2%
Nebraska (18) -4.5% -4.4% 68.5% 212.3%
South Dakota (23) -3.6% -3.5% 79.1% 208.3%
Wyoming (2) 7.8% 10.6% 35.8% 67.7%
Trends in farmland values by state include:
NEBRASKA: Two benchmark farms increased in value, four were unchanged and 10 declined an average of 7.5 percent. Lower sale prices for dry and irrigated cropland were due, at least in part, to deterioration in the average soil quality of land sales.
IOWA: Fourteen benchmark farms declined in value during the first six months of 2016, while seven showed no change. The average sale price for cropland has reached a 5-year low, but average land quality continues to be at historically high levels.
KANSAS: Two benchmark farms increased in value, three were unchanged and two declined in value. Benchmark farms in Kansas were appraised for the first time in 2015. As a result, historic data is unavailable. Much of the increase in cropland prices seen in the second quarter of 2016 was attributable to two farmland sales.
SOUTH DAKOTA: While three benchmark farms increased in value, eight lost value. As a percent of total sales, public auctions have grown significantly, increasing 65 percent from a year ago.
WYOMING: A benchmark farm comprised of cropland saw no change in value in the first half of 2016, while the second, a pasture unit, increased in value 15.6 percent. Farmland sales were too few to accurately discern any trends.
Project Rawhide Town Hall Meeting Announced
In response to the proposed construction of a Costco-owned chicken processing plant in Fremont, Nebraska, two national experts will be on hand July 18th to speak about two major public concerns; water safety and quality of life.
- Kathy Martin, a Civil Engineer, who has over 25 years of experience in wastewater management, environmental permitting, and lagoon operations associated with agricultural and heavy industry, and;
- Don Stull, Professor Emeritus at University of Kansas, is an author and lecturer on socio-economic impacts on Rural America from the meat and poultry industry.
The community discussion will be on Monday July 18th from 6:00-8:00pm at the Woodcliff Community Center at Woodcliff Lakes (980 County Road W, Fremont, NE).
The informational town hall meeting is being sponsored by Socially Responsible Ag Project, Nebraska Communities United, Bold Nebraska and GC Resolve.
“We have worked on projects like this all across the nation, and one thinkg is clear: industrial animal operations do not improve communities, they harm them,” said Laura Krebsbach, a Regional Representative with Socially Responsible Agricultural Project. “This meeting will help the Fremont community better understand the upcoming process and what needs to be done to challenge the risks and false promises that Project Rawhide represents.”
“Our organization continues to seek answers on several outstanding issues pertaining to Project Rawhide,” said Randy Ruppert, President of Nebraska Communities United. “If we cannot get our questions answered in front of the Fremont City Council, we will continue to bring in experts who can inform our community on these unresolved issues. We’re am grateful to have these two speakers in Fremont to engage with our community members.”
“Water is Nebraska’s most valuable commodity supporting the State's $14 billion dollar agriculture economy. Therefore, we should ensure we make every effort to preserve the purity of this valuable natural resource and hold ag corporations responsible and accountable for complying with our water quality standards," said Amy Schaffer, Program Coordinator of Bold Nebraska.
“Now is the time for us to be asking the tough questions,” said Graham Christensen, President of GC Resolve. “Through good community dialogue our area will be more informed on how to address critical issues that pertain to projects of this size and scale. We do not want to make the mistakes commonly repeated by other communities that have set up large-scale poultry operations. We can learn from the past to make better choices for our Nebraska communities.”
Missouri and Nebraska Farmers Union Welcome Two Checkoff Reform Bills in Senate
Presidents of Missouri and Nebraska Farmers Union issued a joint press release in response to the filing of two Bills in the U.S. Senate that deal with commodity checkoff reforms. Senators Lee from Utah and Booker from New Jersey co-sponsored S.3201, the Commodity Checkoff Program Improvement Act, that provides a basic set of provisions that all commodity checkoff programs would have to comply with. Those reforms would restrict using vendors who lobby, reduce conflict of interest within programs, prevent checkoff money from being used to disparage other commodities or products, increase public transparency, and require full program audits every five years.
Senator Lee introduced S.3200, the Voluntary Checkoff Program Participation Act that would make all federal check-off programs voluntary.
Richard Oswald, President of the Missouri Farmers Union said “When checkoff programs are producer controlled and keep their focus on research and full utilization of domestic production, they get high marks from farmers and growers. When commodity program board members who are political appointees fail to use standard competitive business bidding practices for vendors, primarily fund one particular commodity organization that engages in political speech and lobbies for policies that a large number of farmers oppose, they get low marks from farmers. Those perceptions are what you would expect. Farmers focused on getting ahead don’t like their hard earned money being used against their own best interests, especially when most checkoffs today are mandatory.”
John Hansen, President of the Nebraska Farmers Union referred to the National Farmers Union (NFU) policy set by the elected delegates at the March 2016 NFU Convention: “We support a voluntary checkoff, with producer participation determined at the point of sale. Our support for producer-financed commodity research and promotion programs is determined by the extent to which producers who are actively involved in production agriculture control the programs.”
Both Oswald and Hansen said that the difference in the operation and functioning of federal commodity programs was dramatic, and the perception of individual farmers reflected that wide diversity. They also agreed that USDA oversight needed to be increased to insure that checkoff programs were being operated as they were intended and, given the wide range of commodity program structure and operation and corresponding perceptions on the part of farmers, more appropriate uniform federal guidelines that applied to all checkoffs was in order.
Oswald pointed out that checkoffs are taxes paid by farmers; “Checkoffs are a form of involuntary excise tax collected at the point of sale by all the mandatory checkoff programs. That means the checkoffs ought to be as transparent and accountable as any comparable form of representative democratic government,” he said.
Hansen thanked Senators Lee and Booker for their thoughtful efforts. “We hope that these two bills can begin a conversation in the country and also in Congress about the best way to insure that our commodity checkoffs are structured and operated in a fashion that is consistent with the highest standards of transparency, accountability, and ethical conduct. For too long, Congress has failed to do a top to bottom review of the federal checkoffs they created. Oversight is not just a good idea, it is an obligation incurred when federal programs of any kind are created.”
Supporters Urge Congress to Pass Meaningful Checkoff Reform
More than 140 organizations, ranchers, farmers and businesses applaud Senators Booker and Lee for filing legislation that, when passed, will stop commodity checkoff program abuses. The Senators filed the Commodity Checkoff Program Improvement Act (S. 3201), which would put an end to the most egregious abuses committed by the boards of the federally-mandated commodity checkoff programs. In addition, Senator Lee filed the Voluntary Checkoff Program Participation Act (S. 3200), which would ensure no farmer or rancher is forced to pay fees into programs that do not promote their market segment. The 143 organizations, individuals and businesses delivered to the sponsors and to other Senate offices a joint letter of support.
Checkoff programs were established to provide equal benefits to all producers of a particular commodity by using funds gained from mandatory assessments to conduct promotion and research for that commodity. Laws establishing checkoff programs explicitly prohibit the use of funds in ways that would directly influence legislation or government action in order to prevent unfair distribution of benefits amongst producers. Despite this aim, misuse of checkoff programs has allowed for inappropriate relationships between checkoff boards and lobbying organizations. This has created an anticompetitive effect, benefiting certain producers to the detriment of others, and forcing some producers to pay into a system that actively works against them.
For over six years, the National Cattlemen's Beef Association (NCBA) ignored the U.S. Agriculture Secretary's direct warning about the need for checkoff integrity, which would require, for example, the independence of the Federation of State Beef Councils from the control of the NCBA. During that entire time, the Secretary waited while industry groups self-selected participants to work harmoniously with the NCBA to develop a plan for reforming the Beef Checkoff Program. No meaningful plan was ever developed.
Fred Stokes, spokesman for the Organization for Competitive Markets, said: "These checkoff programs were designed to help the U.S. farmer and rancher, but they have been hijacked by corporate interests. The half-billion dollars that these programs generate each year has been mostly diverted and used to the detriment of producers. These funds have mostly become the cash cow for organizations that work against fair competition and market transparency. The National Cattlemen's Beef Association is a glaring example of such abuse. The NCBA derives more than eighty percent of its total revenue from the beef checkoff, while working against the interests of nearly all U.S. cattle producers. They opposed country of origin labeling, blocked efforts to renew market competition through enforcement of the Packers and Stockyards Act of 1921, and used checkoff dollars to defend big packers' anticompetitive ownership of livestock. The millions of checkoff dollars NCBA receives is their life-blood. Successful passage of this proposed legislation is critically important to restoring fair markets and rebuilding our domestic family farm and ranch agriculture."
R-CALF USA CEO Bill Bullard said: "Our joint letter provides clear evidence that independent cattle producers are tired of the conflicts of interest, misspending, and other abuses rampant in our beef checkoff program. We are now appealing to Congress to take action to stop these commodity programs from harming the very individuals who are forced to pay into the checkoff funds, such as the $1 per head cattle tax that U.S. cattle producers must pay each time they sell an animal."
The joint letter highlights the major reform provisions of S. 3201, which would end the glaring abuses of the program boards.
The legislation would:
1. Stop federally mandated checkoff dollars from being transferred to parties that seek to influence government policies or action relating to agriculture issues.
2. Enforce the prohibition against conflicts of interest in contracting and all other decision-making operations of the checkoff program.
3. Stop federally mandated funds from being used for anti-competitive programs or from being spent to disparage another commodity in the marketplace.
4. Increase transparency of the individual boards' actions by shedding light on how federal checkoff funds are spent and the purpose of their expenditures.
5. Require audits of each program every five years to ensure their activities are in compliance with the law.
Further, the joint letter requests Congress pass S. 3200, ensuring that in this complicated, multifaceted market, no farmer or rancher is forced to pay into a joint marketing and research program unless they see a benefit to their farm, ranch or business by doing so.
HARVESTING SUMMER ANNUAL GRASSES FOR HAY
Bruce Anderson, NE Extension Forage Specialist
Can hay from summer annual grasses be dry and high quality? No way, you say? It can't be done! Well, if these are your thoughts, let’s see if I can change your mind.
It is difficult to put up good quality hay – hay that is dry and will not heat or mold – from summer annual grasses like sorghum-sudan hybrids, pearl millet, and forage sorghums. Obviously, this type of hay, which is also called cane hay by some folks, is challenging to bale or stack for most growers. So let's look at what it takes to make good cane hay.
Nearly all problems making good summer grass or cane hay are caused by their stems. Stems are low in protein and energy, they are unbearably slow to dry, and the lower stems contain most of the potentially toxic nitrates.
To solve some problems, cut early, when plants are only waist high. When cut early, stems are smaller, they’re eaten more readily, and the hay contains more protein and energy. Also, there is less plant volume. So with smaller stems and fewer of them the hay will dry quicker.
Regardless of when you harvest though, cut it high, leaving eight to ten inches of stubble. Tall stubble pays off three ways – it helps plants begin regrowth quicker, it holds hay off the ground so air can help dry underneath, and it keeps many nitrates out in the field stubble rather than harvesting them all in your hay.
And finally, always crimp cane hay. Even when stems are small, the waxy coating on the stems cause slow drying. But if you break open these stems by crimping, water will be able to escape and evaporate more quickly.
So cut it early, cut it high. Crimp the stems and they will dry.
Feeding Quality Forums set for August
Feeding cattle is dynamic. Always evolving, always adapting to weather, markets, technology, scientific studies and shifts in consumer demand.
That’s why those who drive the supply train for grain-finished beef gather each summer for a day to compare notes and update their knowledge base. The Feeding Quality Forum (FQF) will convene August 23 in Grand Island, Neb., and August 25 in Amarillo, Texas.
Since the first forums in 2006, dual locations held two days apart provide easy travel distance for most of the Plains and Midwestern cattle feeding belt.
“Topics for the Forum target issues cattlemen are currently dealing with,” says Jill Dunkel, editor for cosponsor Feedlot magazine and head coordinator for the event. “In addition to hearing from industry experts, the meeting offers a great opportunity to visit with other cattle feeders and learn how they are addressing these issues in their own businesses.”
Past attendees agree: “This is my favorite and most informational event I attend all year,” said one, while another commented, “It was very much worth the time investment to be here. Excellent speakers and networking opportunity.”
When it’s all about a quality product and strong bottom line, the chance for cattlemen to bounce ideas off each other and ask questions on current issues can be a big asset.
“It’s designed to be a one-day meeting packed with information relative to current industry issues,” Dunkel says.
The agenda for each of the sections is identical, kicking off with past favorite Dan Basse, president of AgResource Company. His unique, worldwide perspective on the grain and livestock markets and the factors affecting them has traditionally been top rated.
Other presentations by beef industry experts will include a critique and next steps for the USDA yield grading system, feeder cattle health and antibiotics, how to know when cattle are done and finally, how external influences impact the industry.
Sponsoring the event are Zoetis, Roto-mix, Feedlot magazine, Micronutrients and Certified Angus Beef (CAB).
Attendance is by advance reservation until all seats are taken, and remains at the same $50 level as in years past for all registrations by August 7. As space allows, late reservations will be accepted at $75.
Sign-in time is 9:30 a.m., and the fee includes a CAB lunch honoring 2016 FQF Industry Achievement Award winner Larry Corah. Online registration is available at www.feedingqualityforum.com , or contact Marilyn Conley at 800-225-2333 or mconley@certifiedangusbeef.com.
Iowa Farm Bureau young farmer advisory committee welcomes new officers and members
The Iowa Farm Bureau Federation (IFBF) Young Farmer Advisory Committee elected new officers, and welcomed three new district representatives to their committee at their summer meeting last weekend. The new committee officers include:
Jacob Handsacker, Hardin County, Chair
Leanne Kading, Adair County, Vice-Chair
Mindy Handsacker, Hardin County, Secretary
Bri Pullen, Clay County, Historian
Brianne Streck, Woodbury County, PR Chair
Jacob and Mindy Handsacker, both graduates of Iowa State University, reside on a farm in Radcliffe, with their three children. Jacob owns Hands on Excavating LLC, and has transitioned to a full-time position on his family’s farming operation consisting of corn, soybeans, and the custom feeding of hogs. Mindy, who recently took a position with North Central Iowa Ag in the Classroom, works to teach young children to expand their knowledge of agriculture. She also takes her ‘homework’ home, where she contributes to the operation of the farm, and teaches her young children to become advocates for agriculture.
Leanne lives on a farm between Adair and Casey in Adair County with her husband Phillip and their three children. Leanne, formerly involved in the hotel industry, is now active in the day-to-day challenges of raising young children and contributing to their family’s corn, soybeans, oats and hay farm.
Bri, a veteran of our United States Air Force and current para-educator, currently resides in Clay County with her husband Ben. They are both new representatives added to the committee this year and involved in a small sheep and hay operation. Like many other young farmers today, though, they balance their other off-farm work and strive to farm full-time.
Brianne and her husband Grant live on a small corn and soybean operation near Moville with their two daughters. Brianne often assists her parents and husband in their family farming operations, but also works off farm at Flint Hills Resources in Arthur as a merchandiser communicating with farmers to buy their corn.
Additional new representatives added to the committee include Brian and Steva Haeflinger, District 1, and Michael and Mary Beth Jackson, District 8. The new committee members will each serve a three-year term acting as communicators for their districts.
The IFBF Young Farmer Program, available for Farm Bureau members ages 18-35, provides leadership and participation opportunities to nurture the prosperity of young farmers and their families. The program advisory committee plans various events around the state each year, including an annual statewide conference each January that has doubled in attendance over the past four years.
LATEST TTIP TALKS CONCLUDE, AGREEMENT FACES UNCERTAIN FUTURE
The 14th round of negotiations on the Transatlantic Trade and Investment Partnership (TTIP) concluded this week in Brussels, Belgium, and although more talks may be held in late September or early October, the prospects for finalizing a U.S.-European Union Free Trade Agreement seem bleak. German Economy Minister Sigmar Gabriel this week said negotiations “aren't moving forward.”
In commenting on the progress (or lack thereof), the National Pork Producers Council reports they currently support TTIP, however they are skeptical of progress being made on it based on the intransigence of the EU on various issues. The 28-country bloc is willing to eliminate tariffs on nearly all goods, for example, but it announced publicly it is unwilling to eliminate them on beef, poultry and pork.
NPPC wants in TTIP the same deal it has gotten in the 20 other free trade agreements the United States has concluded and in the recently finalized Trans-Pacific Partnership: elimination of tariff and non-tariff barriers on U.S. pork exports.
Winfield US and The Climate Corporation Join Forces to Seamlessly Integrate Technology Tools for Ag Retailers
Winfield US (Winfield United Suppliers) and The Climate Corporation, a division of Monsanto Company (NYSE: MON), are further enhancing their collaboration by implementing a two-way, cross-navigation exchange between the R7® Tool, the Winfield US decision ag solution, and The Climate Corporation’s Climate FieldView™ platform.
“Our aim is to help foster better adoption of ag technology tools so retailers can then use those capabilities to help farmers make more profitable and agronomically sound decisions,” said Mike Vande Logt, chief operating officer, Winfield US. “Technology is changing rapidly, and retailers and farmers who don’t avail themselves of its many benefits may find themselves at risk of being left behind.”
The new enhancements are expected to roll out in two phases in time for 2017 crop season planning, and provide retailers with a more streamlined process to help them visualize and use data.
Phase 1, expected to launch in October, will help ag retailers make seed recommendations that best fit a field’s profile. This enhancement will be available to retail sales personnel through navigation from the Climate FieldView™ platform’s prescription tools to the R7® Tool, which accesses Answer Plot® Program data.
Phase 2, expected to begin in March 2017, will help retailers address in-season issues, such as nitrogen management. It will provide navigation from the R7® Tool to the Climate FieldView™ platform and make it easy for retailers to access nitrogen monitoring, field health, and variable rate seeding prescription features.
“With these enhancements, the R7® Tool and the Climate FieldView™ platform can be used very easily in a synergistic way,” said Vande Logt. “For example, a retailer can call up a historic image and a prescription map from the R7® Tool, and pair that with the Climate FieldView™ platform’s nitrogen monitoring features to evaluate the past, present and future state of a field, then use that data to help the grower make the best decisions.”
“Easy data integration between the Climate FieldView™ platform and retailer software systems is an important step in enabling farmers and their trusted advisors to collectively make data-driven, decisions with confidence,” said Mike Stern, chief executive officer for The Climate Corporation. “We’re thrilled to have an advanced data connectivity partnership between the Climate FieldView™ platform and the R7® Tool so Winfield US retailers can easily navigate between the two platforms for a more collaborative experience with their Climate FieldView™ customers.”
The R7® Tool will also be enhanced in the coming months. Beginning October 1, the tool will be reengineered to be faster, more user-friendly and customizable, with a single platform accessible from PC, laptop or tablet. Enhancements include new functionality that enables retailers to create a multi-hybrid prescription for variable-rate seeding recommendations.
Welcome to the KTIC Agriculture Information blog!!! Check back here for the latest in ag news and information, from local events to international happenings and government reports that affect your operation. Please email with suggestions! -Chad Moyer, Farm Director, KTIC Radio
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