Tag / Farming

by Hoosier Econ

Farmers Buying Most of the Farmland for Sale in 2014

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Stumbled upon some interesting data about buyers of farmland while researching farmland value. This comes from AgriNews:

One thing they have noticed, Aupperle said, is that more farmers are purchasing the land. During the first nine months of the year, 71 percent of the land was purchased by farmers or their families.

“Farming community has really stepped up, while outside investors seem to be waiting to see if a correction comes,” Aupperle said. “The farming community has a lot of money from remaining steady for two years and when investors come back, an upward trend should continue.

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by Hoosier Econ

Texas Ranch For Sale: $725 Million or Best Offer

Per Associated Press:

One of the largest ranches in the U.S. and an icon for Texas horse and cattlemen has been listed for $725 million, marking the end of a decades-long courtroom battle among the heirs of cattle baron W.T. Waggoner, who established the estate in 1923.

The estate includes the 510,000-acre ranch spread over six North Texas counties, with two main compounds, hundreds of homes, about 20 cowboy camps, hundreds of quarter-horses, thousands of heads of cattle, 1,200 oil wells and 30,000 acres of cultivated land, according to Dallas-based broker Bernie Uechtritz, who is handling the sale along with broker Sam Middleton of Lubbock.

I did a little calculating on what a 30 Year Mortgage would be on this property if you put a $30 Million dollar downpayment on it and secured a loan for 4.25%. Your monthly payments would be just a shade over $3.4 Million a month.

by Hoosier Econ

USDA Soybean and Corn Numbers

USDA released a lot of numbers on July 11th pertaining to farming conditions in the United States. A lot of numbers were thrown out today, but Indiana is now exporting both corn/soybean around the world in bigger numbers compared to ten years ago. USDA projected nice yields this year (Corn 165.3 bpa and Soybeans 45.2 bpa) but in reality this should come with major warning labels. Heavy rains in the cornbelt in June(beginning of pollination) have mostly meant lower yields come harvest.

Soybean production is projected at a record 3,800 million bushels, up 165 million due to increased harvested area. Harvested area, forecast at 84.1 million acres in the June 30 Acreage report, is 3.6 million above the June forecast. The soybean yield is projected at 45.2 bushels per acre, unchanged from last month. Soybean supplies are 180 million bushels above last month’s forecast due to higher beginning stocks and production. Soybean crush is projected at 1,755 million bushels, up 40 million reflecting increased domestic soybean meal disappearance in line with adjustments for 2013/14 and higher

Corn production is projected 75 million bushels lower based on harvested acres from the June 30 Acreage report. The national average corn yield remains projected at a record 165.3 bushels per acre. Favorable early July crop conditions and weather support an outlook for record yields across most of the Corn Belt, however, for much of the crop, the critical pollination period will be during middle and late July. At the projected 13,860 million bushels, this year’s crop remains just 65 million bushels below last year’s record.