I had a great time out of the office with my family. Now I am getting caught up on my reading. Here are a few items I thought might be of interest to you.
Larry Kopsa CPA
Larry Kopsa CPA
ETHANOL INDUSTRY DODGES A BULLET
(Successful Farming magazine) -- Yesterday, the Environmental Protection Agency looked at the evidence and concluded that ethanol isn't hurting the economy enough to cut a government mandate to use ethanol in half this year. The news was welcomed by ethanol and corn interests. "We are very pleased -- not surprised -- but we are very grateful," said National Corn Growers Association president, Ron Litterer of Greene, Iowa. Several economic studies, including analysis by Iowa State University and Texas A&M University have shown that ethanol is a small factor in rising food prices and that higher energy costs and fuel prices had more to do with recent food price inflation. However, a disappointed National Cattlemen's Beef Association indicated that this won't be the last request for a waiver. "We will continue our efforts to ease the burden of tight feed supplies for our cattle producers, and will encourage other states to file for waivers from the RFS, NCBA president, Andy Groseta, said in a statement released Thursday.
(Successful Farming magazine) -- Yesterday, the Environmental Protection Agency looked at the evidence and concluded that ethanol isn't hurting the economy enough to cut a government mandate to use ethanol in half this year. The news was welcomed by ethanol and corn interests. "We are very pleased -- not surprised -- but we are very grateful," said National Corn Growers Association president, Ron Litterer of Greene, Iowa. Several economic studies, including analysis by Iowa State University and Texas A&M University have shown that ethanol is a small factor in rising food prices and that higher energy costs and fuel prices had more to do with recent food price inflation. However, a disappointed National Cattlemen's Beef Association indicated that this won't be the last request for a waiver. "We will continue our efforts to ease the burden of tight feed supplies for our cattle producers, and will encourage other states to file for waivers from the RFS, NCBA president, Andy Groseta, said in a statement released Thursday.
NEBRASKA FARM REAL ESTATE VAULE, CASH RENTS HIGHER
(Nebraska Ag Connection) -- Nebraska's farm real estate value rose sharply during 2007, extending a trend that began in 1993, according to the USDA. Farm real estate value on January 1, 2008, averaged $1,460 per acre, a record high. This is up $230 per acre or 19% higher than last year's level. Cropland value increased 20% from last year to $2,270 per acre, with dryland acreage averaging $1,950 per acre and irrigated cropland at $2,900. Pastureland, at $530 per acre, was 23% above a year ago. Cash rents paid to landlords for cropland increased from last year and were also a new record high. Irrigated cropland rent averaged $155 per acre, an increase of $16. Dryland rent increased to $95 per acre, also up $16 from a year earlier. Pasture rented for cash, which averaged $14.20 per acre, rose $.20 from 2007. Find agricultural statistics for your county at www.nass.usda.gov.
EXPECT 20% TO 30% RISE IN FARM LAND LEASE RATES IN
(Nebraska Ag Connection) -- Nebraska's farm real estate value rose sharply during 2007, extending a trend that began in 1993, according to the USDA. Farm real estate value on January 1, 2008, averaged $1,460 per acre, a record high. This is up $230 per acre or 19% higher than last year's level. Cropland value increased 20% from last year to $2,270 per acre, with dryland acreage averaging $1,950 per acre and irrigated cropland at $2,900. Pastureland, at $530 per acre, was 23% above a year ago. Cash rents paid to landlords for cropland increased from last year and were also a new record high. Irrigated cropland rent averaged $155 per acre, an increase of $16. Dryland rent increased to $95 per acre, also up $16 from a year earlier. Pasture rented for cash, which averaged $14.20 per acre, rose $.20 from 2007. Find agricultural statistics for your county at www.nass.usda.gov.
EXPECT 20% TO 30% RISE IN FARM LAND LEASE RATES IN
(Agriculture Online) -- For the first time since the big U.S. corn and soybean buys by the Soviet Union in 1973, the U.S. farmland market is being driven by demand, not supply. That means some farmers could be "modestly shocked" by what they see when they go to sign 2009 farmland lease agreements. Demand continues to take land prices higher, and will continue to do so, at least in the near term, says CEO of the Westchester Group, Inc., Murray Wise. That could mean a 20% to 30% increase in farmland leasing rates in 2009, the farmland real estate analyst says. Wise sees million of reasons the current grain market volatility won't open the chute in the land market. One reason that the farmland market won't see a slash like the mid-1980s: The number of farms operating -- and more importantly, growing -- with no debt associated with land equity has grown considerably, and Wise sees this as continuing under current conditions.
