2018 Nebraska Farm Real Estate Report
Jim Jansen - Agricultural Systems Economics Extension Educator
Final results from the Nebraska Farm Real Estate Survey show a fourth consecutive year of declining Nebraska agricultural land values. The statewide average value dropped 4% to $2,270 per acre. This is an 18% reduction since land values peaked in 2014.
Highlights
- Average land value changes by district varied from a 7% reduction in the North District to 1% in the Southeast District.
- Tillable grazing land saw the greatest decline of 7%. The changes were particularly notable in the East and Central districts where values dropped 11% and 10%, respectively. However, tillable grazing land in the Southeast District was an exception and increased 2%.
- Two other categories, dryland cropland with no irrigation potential in the Northeast District and nontillable grazing land in the Southeast, were the only others to see an increase.
- Survey participants identified crop prices and property tax levels as significantly contributing to the drop in land values.
Northeast District - Land Type - $/Acre - % Change
All Land Average - 5,395 -2
Center Pivot Irrigated Cropland - 7,310 -2
Gravity Irrigated Cropland - 6,680 -3
Dryland Cropland (Irrigation Potential) - 5,800 -3
Dryland Cropland (No Irrigation Potential) - 5,530 +2
Grazing Land (Tillable) - 3,330 -9
Grazing Land (Nontillable) - 2,135 -4
Hayland - 3,155 -4
East District - Land Type - $/Acre - % Change
All Land Average - 6,240 -2
Center Pivot Irrigated Cropland - 8,645 -1
Gravity Irrigated Cropland - 7,455 -2
Dryland Cropland (Irrigation Potential) - 6,280 -3
Dryland Cropland (No Irrigation Potential) - 5,675 -2
Grazing Land (Tillable) - 3,335 -11
Grazing Land (Nontillable) - 2,345 -6
Hayland - 2,990 -3
The report was written by Jim Jansen, Agricultural Economist, Northeast District, Eastern Nebraska Research and Extension Centera, and Jeff Stokes, Hanson-Clegg-Allen Endowed Chair, Agricultural Banking and Finance, Department of Agricultural Economics.
Read the full version: Nebraska Farm Real Estate Market Highlights 2017-2018... https://agecon.unl.edu/research/2018-nebraska-farm-real-estate-report.pdf.
Flooding and Ponding in Soybeans
Loren Giesler - NE Extension Plant Pathologist
With the weather pattern this past week, it was starting to feel like the Pacific Northwest. Areas of the state have seen significant amounts of rain in the last week and, in turn, are experiencing flooding and ponding in their fields.
The extent to which flooding damages soybean depends on several factors, including:
- growth stage of the soybeans at flooding,
- frequency and duration of flooding,
- air-soil temperature during flooding, and
- rate of drying after the flood event.
The most important impact of flooding is on overall plant respiration. When flooding occurs, there is a reduction in the exchange of air (oxygen) between the soil and atmosphere. This leads to decreased total root volume, reduced water and nutrient transport through the roots to the shoots, and an accumulation of sulfides and butyric acid produced by microorganisms. These compounds are toxic to the plant. Depending on the length of time the roots are waterlogged, it could lead to cell death and root death.
Soybeans are generally able to handle a fair amount of flooding without sustaining major impacts. Yield losses are seldom observed in fields flooded for 48 hours or less. Fields flooded for four or more days stress the crop which causes delays in plant growth and thus shorter plants with fewer nodes. Once they sustain six or more days of flooding, there are more decreases in yield and after seven days there is significant loss of stand. It is important to note that there is a significant amount of genetic variability for flooding tolerance in maturity group II and III soybeans (VanToai et al, 1994).
The rate at which a field dries following a flood significantly impacts soybean survival (Sullivan et al, 2001). Research has shown that yield reductions are much greater for fields with clay soils versus those with silt loam soil flooded for the same period of time. The data has shown at V4 yield losses of 1.8 bu/ac per day of flooding was observed on clay soils and 0.8 bu/ac per day on silt loam soils. Just like we observe in corn, once reproductive development has started, there is more detrimental impact on yield. Flooding that occurs at R1 growth stage can have yield losses of 2.3 and 1.5 bu/ac per day on clay and silt loam soils, respectively (Scott et al, 1989). Those yield losses increase once soybean are in the R3 to R5 growth stages.
Soybeans Diseases That Develop Following Flooded Conditions
Saturated soils and flooded conditions promote a number of diseases in soybeans that producers and crop consultants should watch for now and later in the season. Wet conditions are favorable for several pathogens to sporulate, germinate, and/or infect plants. Below are a few of the diseases that are more common in corn subjected to flooded conditions.
Pythium
Wet conditions are favorable for Pythium which is our most common seedling disease of soybean in Nebraska. Cooler soil temperatures will make this worse as the seedling will be stressed and grow more slowly. Typical symptoms of Pythium will include seed decay, pre-emergent seedling rot, and seedling damping off after emergence. If the plant has emerged, it often may have a root system where the outer layer can be easily pulled off and the center of the root will stay intact.
Phytophthora
As soil conditions warm up, Phytophthora often will become more common with heavy rains. Fields will typically have a history of this disease which will flare up when rains saturate soil profiles. Phytophthora is often indicated when a field was planted with a standard rate of seed treatment but still has significant stand reduction when wet conditions occur. This will be a field-specific issue and usually does not occur as often as Pythium.
Typical symptoms of Phytophthora are seed decay and pre-emergence seedling rot, and seeding damping off after emergence. Typical symptoms on seedlings are darkened stems at the base of the plant coming up from the soil line. When young plants are cut at the lower stem, often there will be a dark center to the stem. Phytophthora can kill plants at any stage of development, but Pythium typically does not kill plants much past the V5 growth stage.
Flooding and Ponding in Corn
Tamra Jackson-Ziems, Extension Plant Pathologist
In many areas these rains were welcomed by the crops and allowed growers to delay starting the pivots. In other fields, however, heavy rains over several days resulted in ponded or flooded fields and concerns about possible effects on the corn.
The extent to which flooding damages corn depends on several factors, including:
- growth stage of the corn at flooding,
- frequency and duration of flooding, and
- air-soil temperature during flooding.
The most important impact of flooding is on overall plant respiration. When flooding occurs, there is a reduction in the exchange of air (oxygen) between the soil and atmosphere. This leads to decreased total root volume, reduced water and nutrient transport through the roots to the shoots, and an accumulation of sulfides and butyric acid produced by microorganisms. (These compounds are toxic to the plant.) Depending on the length of time the roots are waterlogged it could lead to cell and root death and eventually plant death.
Corn development stage is variable across the state, depending on hybrid and planting date. Currently in Holt County, corn growth stages range from just emerging to V8. In other locations corn is at V12.
Germinating to V6
For corn that is at development stage V6 (six visible leaf collars) or smaller, the growing point is still near or below the soil surface. These plants can survive only two to four days of flooding. The chance of plant survival increases dramatically if the growing point is not completely submerged (as with older corn) or submerged for less than 48 hours. However, if temperatures are greater than 77°F, plants may not survive 24 hours. Research has demonstrated yield reductions for 6-inch and 30-inch corn ranging from 5% to 32%, depending on soil nitrogen availability and duration of flooding.
V7 to V10
Once corn reaches V6, its ability to “handle” standing water increases dramatically due to a deeper root system that can recover quicker from the lack of oxygen in the soil. However, corn from V6-V10 cannot live forever in standing water. Research has shown that corn can tolerate standing water for 7 to 10 days, depending on the temperature. Even with a deeper root system, the plant will still have difficulty moving water throughout the plant due to lack of root function. With this in mind, when temperatures are above 860F, plant stress will occur and decrease the plant’s tolerance to standing water. Yield losses will vary depending on duration of flooding, temperature, and nutrient availability.
Pretassel to Silking
Corn that is reaching pretassle through silking—VT to R1— becomes “sensitive” to flooding once again. These are the most critical stages of corn development and thus the plant has its lowest tolerance to excessive soil moisture or standing water. Excessive soil moisture or standing water causes a lack of nutrient uptake in the plant. This can lead to pollination failure and severely reduce yield potential. In general the corn can tolerate no more than two to four days of standing water during this critical growth stage before yield loss become severe.
Assess Survival
For corn V6 and smaller after the water recedes examine the color of the growing point, if present. The radicle (root) and coleoptile (shoot) should appear white or cream colored. Germinating seeds can be cut in half to determine if turgor pressure is still present. If the seed is extremely soft and does not hold form, the probability for survival is slim. New growth should resume three to five days after the water recedes.
Nitrogen Management Considerations
No matter the growth stage of the crop, there will be concerns about denitrification or nitrogen leaching and decreased nutrient availability that may result in nitrogen deficiency later in the growing season. In fields where ammonium-based fertilizers were applied within days before soil conditions became saturated, the potential for N loss from fertilizer is minimal. However since urea is water soluble, there is potential for leaching or off-site movement of N. In sandy soils or heavily tile-drained soils, urea or nitrate can move as much as a foot for each inch of rain. Compare this with clay loam or silt loam soil where movement is five to six inches for each inch of rain. Once the sun comes back out, nitrates will start moving back up in the soil profile due to evaporation from the soil surface causing an upward suction force that moves the nitrate and water closer to the soil surface. Also, evapotranspiration from actively growing crops will result in a similar suction force allowing the crop access to some of the nitrates again.
In fields where N from fertilizer or organic N was in nitrate form before the soils became excessively wet will have nitrogen loss. In fine-textured soils, N is lost through denitrification in saturated soil conditions. Denitrification rates increase after about a day under oxygen-depleted conditions when the soil pore space is filled with water. When these conditions exist, soil microbes use nitrate for respiration. This, in turn, releases N as a byproduct in a gaseous form that is lost to the atmosphere. It is possible to lose as much as 5% of the nitrate-N in the soil for each day the soil remains saturated with water under warm soil temperatures. In coarse-textured soils or soils intensively tiled, the majority of the N loss will occur by leaching below the root zones or into tile lines.
It is important to remember that corn’s nitrogen uptake from emergence through V6 only represents about 5% of the total plant uptake. However, starting at V8 there is a rapid accumulation of N by the plant, with about 60% of the total N uptake occurring between V8 and silking –R1. Thus it is important to scout fields for early season N-deficiency and, if deficiency symptoms occur, apply supplemental N either as sidedress or through fertigation.
Corn Diseases That Develop Following Flooded Conditions
Saturated soils and flooded conditions promote a number of diseases in corn that producers and crop consultants should watch for now and later in the season. Wet conditions are favorable for several pathogens to sporulate, germinate, and/or infect plants. Below are a few of the diseases that are more common in corn subjected to flooded conditions.
Crazy Top. One easily recognized disease is crazy top of corn, which causes a leafy proliferation of the tassel (Figure 2) and sometimes, the ear. The pathogen requires standing water for spores to swim and infect plants systemically. The disease rarely causes substantial yield loss and there are no rescue treatments available for it.
Stalk Rots. Fungal stalk rot diseases and lodging are common in areas that were flooded. So, revisit these areas throughout the season to monitor stalk quality and prioritize fields for harvest to avoid losses due to lodging. Stalk rot diseases tend to develop in previously flooded corn because of the loss of nitrogen during heavy rain and flooding. Nitrogen-deficient plants often use more resources in the stalks during grain fill, leaving them weakened and prone to disease and lodging. Affected plants have softened or degraded pith (Figure 3) inside the stalks that may eventually become hollow. Hollow stalks are weaker and prone to lodging because they cannot support the weight of the ear during high winds. For more information about stalk rot diseases, see the UNL Extension Circular, Common Stalk Rot Diseases of Corn (EC1898).
Bacterial Stalk Rot. Corn in standing water is often infected low on the stalk near the soil line by the bacteria causing bacterial stalk rot. Ultimately, infected plants could develop lesions that spread to wrap around and/or up the stalk and may lead to stalk collapse and premature death (Figure 4). Bacterial stalk rot usually creates a distinctly foul odor in infected plant tissue and can be dark and slimy.
New communications director hired for IPPA
The Iowa Pork Producers Association has hired an experienced agriculture communications professional to lead its future communications efforts.
"We are fortunate to have secured the services of Ms. Dal Grooms to serve as our new communications director," said Pat McGonegle, IPPA chief executive officer. "Dal has an extensive and impressive background in agriculture communications leadership positions and the association is looking forward to her contributions."
Grooms was most recently an account supervisor for the Sandbox Agency in Des Moines. She previously served as communications director for the Iowa Cattlemen's Association in Ames from 2010 to 2015. Grooms also worked for the Iowa Farm Bureau Federation in West Des Moines for many years and owned her own news service earlier in her career.
"Iowa's pork producers are linchpins for their communities' and the state's economic engines, plus they produce a nutritious and delicious iconic Iowa food," Grooms said. "I'm looking forward to working alongside them and the IPPA staff in creating dialogues with Iowans about this good work they do every day."
The northeast Nebraska native has a bachelor's degree in journalism from the University of Nebraska-Lincoln and a master's degree in public administration from Drake University in Des Moines. She began her new duties on June 11.
Grooms replaces Ron Birkenholz, who is retiring on June 30 after a nearly 40-year communications career, including more than 12 years with IPPA.
SHIC Board Approves Project to Examine Future Industry Needs and Introduces PCR Assay Catalog
Always concerned about the future of the pork industry, the Swine Health Information Center (SHIC) Board of Directors June meeting included review of the organization’s mission statement and funding approval for two new projects. Additionally this month, SHIC completed and published the Polymerase Chain Reaction (PCR) Assay Catalog for diagnostic laboratories containing information on 17 new tests developed.
SHIC Funds Two New Preparedness and Readiness Projects
“Asking the right questions is crucial and for that reason the Board approved a proposal from Iowa State University to study if a swine health monitoring program, modeled after the poultry industry’s National Poultry Improvement Program (NPIP), is feasible for the pork industry,” explained Dr. Paul Sundberg, executive director of SHIC. During the study, Investigators will rely on an advisory group to oversee development of a findings report.
The Iowa State University study will objectively examine NPIP and see if any parts can be translated to the US pork industry. The project will begin with reviewing possible future industry needs for swine health assurances to protect or enhance international trade. Then the group will consider if current programs, or a new pork NPIP-like program, could satisfy those needs in a sustainable manner. For an answer to whether a NPIP-like program is needed and feasible, questions of synergy with existing swine programs, organizations and structure, state/federal/private contributions to funding, and sustainability will be considered.
The second study approved for funding by the SHIC Board is with South Dakota State University for the development of a multiplex real-time PCR and antibody reagents for the detection of swine acute diarrhea syndrome coronavirus (SADS-CoV). Porcine epidemic diarrhea virus (PEDv), porcine deltacorona virus and SADS-CoV are circulating in sow herds in the Far East, continuing to cause significant neonatal mortality. This study will arm US veterinary diagnostic lab swine disease diagnosticians with the ability for early detection of the recently discovered SADS-CoV that may be emerging in China.
SHIC Drives Improved Readiness for Emerging Disease with PCR Catalog
When porcine epidemic diarrhea virus (PEDv) hit the US in 2013, the industry could not effectively test for it. Diagnostic preparedness and readiness for possible new or emerging production diseases has been a focus of SHIC since its 2015 inception. The recent publication of the SHIC-initiated and funded PCR Assay Catalog for diagnostic laboratories demonstrates how far the pork industry has advanced in ability to test for emerging diseases.
“Early detection is critical to early response. The catalog provides diagnosticians at our veterinary diagnostic labs, who are working every day with swine health case submissions, pertinent information about the 17 new SHIC-funded PCR tests recently developed, including contact information of the experts for questions about availability and use. Additionally, the catalog summarizes the research behind the test development and covers technical background information including sample types and analytical and diagnostic sensitivity and specificity,” Dr. Sundberg remarked. The catalog is being sent to veterinary diagnostic labs and has been posted on the SHIC website to be readily available.
From evaluating risks via the SHIC Swine Disease Matrix and assessing current diagnostic needs to be able to quickly identify these pathogens, to funding the development of tests, SHIC has led the pork industry to an additional level of readiness which puts the US industry on a different playing field than it was on prior to its inception.
CWT Assists with 2.5 Million Pounds of Cheese and Butter Export Sales
Cooperatives Working Together (CWT) member cooperatives accepted offers of export assistance from CWT that helped them capture contracts to sell 2.460 million pounds (1,116 metric tons) of Cheddar, Gouda and Monterey Jack cheese and 55,116 pounds (25 metric tons) of butter going to customers in Asia, the Middle East, and Oceania. The product has been contracted for delivery in the period from June through December 2018.
CWT-assisted member cooperative 2018 export sales total 39.066 million pounds of American-type cheeses, 11.229 million pounds of butter (82% milkfat) and 10.183 million pounds of whole milk powder to 25 countries on five continents. These sales are the equivalent of 687.573 million pounds of milk on a milkfat basis. Totals have been adjusted for cancellations.
This activity reflects CWT management beginning the process of implementing the strategic plan reviewed by the CWT Committee in March. The changes will enhance the effectiveness of the program and facilitate member export opportunities.
Assisting CWT members through the Export Assistance program in the long term helps member cooperatives gain and maintain market share, thus expanding the demand for U.S. dairy products and the U.S. farm milk that produces them. This, in turn, positively affects all U.S. dairy farmers by strengthening and maintaining the value of dairy products that directly impact their milk price.
Grilling for July 4th More Affordable This Year
A cookout of Americans’ favorite foods for the Fourth of July, including hot dogs, cheeseburgers, pork spare ribs, potato salad, baked beans, lemonade and chocolate milk, will cost slightly less this year, coming in at less than $6 per person, says the American Farm Bureau Federation.
Farm Bureau’s informal survey reveals the average cost of a summer cookout for 10 people is $55.07, or $5.51 per person. The cost for the cookout is down slightly (less than 1 percent) from last year.
“This is a very tough time for farmers and ranchers due to low prices across the board. It is appropriate that this very painful situation hitting farmers be reflected at the retail level as well,” said AFBF Director of Market Intelligence Dr. John Newton. “We are seeing record meat and dairy production in 2018 so that has also influenced retail prices and so, for consumers, this year’s Fourth of July cookout costs will be slightly less than last year’s.”
AFBF’s summer cookout menu for 10 people consists of hot dogs and buns, cheeseburgers and buns, pork spare ribs, deli potato salad, baked beans, corn chips, lemonade, chocolate milk, ketchup, mustard and watermelon for dessert.
“Milk production in 2018 is projected at a record 218 billion pounds, contributing to lower retail milk prices,” Newton said. While fluid milk prices have declined, tighter stocks of American cheese contributed to slightly higher cheese prices, he added.
Competition in the meat case continues to benefit consumers through lower retail prices, making grilling for July Fourth even more affordable for consumers this year, according to Newton.
A total of 96 Farm Bureau members in 28 states served as “volunteer shoppers,” checking retail prices for summer cookout foods at their local grocery stores for this informal survey.
The summer cookout survey is part of the Farm Bureau marketbasket series, which also includes the popular annual Thanksgiving Dinner Cost Survey and two additional surveys of common food staples Americans use to prepare meals at home.
The year-to-year direction of the marketbasket survey tracks closely with the federal government’s Consumer Price Index report for food at home as both the index and the marketbasket remained relatively flat compared to year-ago levels.
As retail grocery prices have increased gradually over time, the share of the average food dollar that America’s farm and ranch families receive has dropped.
“Through the mid-1970s, farmers received about one-third of consumer food expenditures for food eaten at home and away from home. Today, farmers receive approximately 14.8 cents of every food marketing dollar, according to the Agriculture Department’s revised Food Dollar Series. However, after accounting for the costs of production, U.S. farmers net 7.8 cents per food dollar.” Newton said.
Using the “food at home and away from home” percentage across-the-board, the farmer’s share of this $55.07 marketbasket would be $8.15.
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