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News
Northern Tier Land Sales Still Strong
by Ray Shinn
Frontier Farm Credit appraiser in the northern tier of northeast Kansas
The northern tier of counties has an assortment of diverse land with more pure cropland tracts in the eastern area of Doniphan and Brown counties, and more combinations of cropland and pasture land in Washington and Marshall counties. Land north of Highway 36 is selling higher than land south of the area.
Land values have continued to be strong in the northern tier of counties. The vast majority of land has been purchased by farmers for expansion of their operations, with little being purchased by investors. The number of 1031 exchanges has slowed, although there were several transactions that helped top the market.
Cropland values have by far taken the lead in moving upward. The commodity prices for corn, soybeans and wheat are driven by a high demand from local feed markets and bio-fuels markets. This increased the market for good producing cropland which has seen the largest percntage increase. The eastern counties of Brown and Doniphan saw as much as a 30% increase over a year earlier. Highly productive cropland sales have topped the $4,000 per acre price for terraced upland. A tract of dryland bottomland in Nemaha County sold for more than $5,000 per acre in December with another similar sale recently in the area. In the western area, land in Washington and Marshall counties have also seen an increase, with as much as a 15% increase for pure cropland sales.
With the commodity prices rising, the cost to provide feedstuff for cattle and hogs in our area has also increased and has put pressure on pasture land. Pasture prices have stabilized in the area with good native grass pasture selling in the $1,200 to $1,500 per acre range. The lower end pastures with trees and some brush are in the $1,000 to $1,200 per acre range. Timber pastures are being purchased in the $800 to $950 per acre range with some timber pasture being sought by out-of-area buyers for recreational use. There are several tracts in the western area of Washington county that consisted of timber pasture and land in the Conservation Reserve Program that were purchased by investors for recreation. We have also seen more purchases of land currently in the Conservation Reserve Program to be brought back into production for cropland.
With higher commodity prices and higher land values, cash rental rates have increased. Land that was cash renting for $100 per acre several years ago, is now renting in the $125 to $140 per acre range. Pasture land rental rates have also increased from an average of $20 per acre to some pasture land being leased in the $30 to $40 per acre range.
Featured News
Frontier Farm Credit Introduces AgStart
“Young Guns” is more than a movie to Frontier Farm Credit. It is a team of new and beginning loan officers that meet twice a year for training purposes. Earlier this year Doug Hofbauer, CEO, challenged some of the “Young Guns” to work with other team members to implement a fresh lending program geared toward young, beginning, and minority producers.
President's Corner
President's Corner
We know you are busy and hope this newsletter gets you the information you need quickly and succinctly. We are fortunate that agriculture is a bright spot in the overall economy, and we go into a period of financial turmoil with generally strong balance sheets. With the turmoil on Wall Street and in the national credit markets, let me answer a few commonly asked questions. Continue Reading>>
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Of Intere$t
Of Intere$t
Fortunately, Farm Credit does not deal in the subprime market and did not have exposure to the “toxic debt” that caused so many
problems on balance sheets. Being a single industry lender dedicated to agriculture has produced a conservative risk tolerance within the Farm Credit system. This is apparent with our strong balance sheets and healthy capital levels. By “sticking to our knitting” Farm Credit has avoided the issues that closed the doors of other financial institutions. Continue Reading>>
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Crop Talk
Crop Talk
2008 will be a year to remember in agriculture. All time record
commodity prices, record floods and rainfall, diseased crops, turmoil in our national and world economy, and for the most part good to excellent yields in the Frontier Farm Credit territory. Continue Reading>>
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Leasing Residual
Leasing Residual
Why do people lease? Here are some ideas to answer that question:
Tax Management Strategies
- Increase rate of depreciation
- Avoid losing depreciation in the 4th quarter
Continue Reading>>
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Business ¢ents
Business ¢ents
Business Tax Planning Keeping accurate and up-to-date business records can be a difficult but important part of operating a business. If you find this challenging, plan ahead. Don’t wait until tax time or until you are totally confused. Your records will be used to prepare tax returns, make business decisions, and apply for loans. Set aside a special time each day to update your records or seek help from a qualified professional. It will pay off in the long run with more deductions and fewer headaches. Everyone in business must keep records. Good records will help you: Continue Reading>>
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Press Releases
Latest Press Release
- Riffel Promoted to Frontier Farm Credit Vice President of Credit Services
- Fike Promoted to Frontier Farm Credit Senior Vice President of Credit
- Frontier Farm Credit Plans to Build New Marysville Location