When there’s a lot of demand for an asset — like there is currently for farmland — it’s easy to get the idea that selling it is a cinch. So it’s tempting for a seller to assume he can do it himself, or hire the lowest-cost broker around to handle the transaction. This can especially [...]
News & Insights
Selling the farm isn’t always as easy as it looks
March 26, 2012Farmland prices in Iowa rose by an average of 23.7 percent in the last 12 months, and that’s what passes for a slowdown these days. (The numbers came from the semiannual survey by the Iowa Farm & Land Chapter of the Realtors Land Institute.) We’ve heard — and talked about — these huge numbers throughout [...]
The agriculture industry feeds not only our nation, but much of the rest of the world, at reasonable prices. Naturally, that requires a lot of natural resources, and the industry sometimes gets criticized by environmentalists. But an increasing number of farmers and related businesses are seeking ways to reduce their energy use and carbon footprint. [...]
Dairy Today reports that Indiana is tightening manure regulations for dairy and beef cattle producers. Starting July 1, producers with 300 or more dairy or beef cattle will be required to have 180 days of manure storage — a 50 percent increase from the current requirement of 120 days. Dairy Today also reported that Indiana [...]
Buying farmland: It’s still about the “business case”
February 27, 2012In most well-run businesses, a new investment usually begins with development of a business case — a thought process that analyzes the cost of the investment, the capital requirements, the marketplace, the expected cash flow, and the return on investment. As long as businesses are disciplined about this, they tend to succeed. The same is [...]
Those “golden waves of grain” are golder than gold
February 23, 2012Many folks consider gold a measuring stick for evaluating prices on farmland, and there’s some reason for that. As pointed out by Landowner recently, gold historically has a strong 85% correlation to Illinois and farmland. In a recent update, the newsletter noted that despite the much-discussed rise in farmland prices, land remains a bargain relative [...]
Warren Buffett on why he’d rather own farmland than gold
February 22, 2012Why farmland isn’t overvalued
February 22, 2012I have a challenge for you: Look around on Wall Street — or anywhere else for that matter — and find a business where net income was up 28% and debt decreased by 3%. While you’re at it, see where you can find a class of real estate where values are rising dramatically even as [...]
As we enjoy the good times in American agriculture, let’s not forget the needs of less fortunate farmers elsewhere around the world
February 21, 2012When it comes to philanthropists who are especially gifted at finding practical ways to improve our world, Microsoft founder Bill Gates may ultimately prove to be the greatest of them all. And some may find it ironic that the man who made his fortune creating software would now focus so much of his time on [...]
Ignore the headlines; there are still good values on Iowa farmland
February 16, 2012John Kirkpatrick, who manages our business in Iowa, had some good thoughts recently on the attention given recently to prices on Iowa farmland. The sale of a farm for $20,000 an acre popped up on the national media radar screens, just as the eye of the nation was already focused on the state, which was [...]