T. Marc Schober - Seeking Alpha 'T. Marc Schober' Tag RSS Syndication from SeekingAlpha.com SeekingAlpha.com http://seekingalpha.com/author/t-marc-schober Rural Mainstreet Index on the Rise: More Good News for Farmers http://seekingalpha.com/article/180036-rural-mainstreet-index-on-the-rise-more-good-news-for-farmers?source=feed 180036 The overall Rural Mainstreet Index (RMI) climbed to a 17-month high, according to Creighton University’s November survey of bank CEOs in an 11-state region. The RMI rose to 40.9, which is the highest since July 2008 but is still considerably below growth neutral of 50.0. The farm equipment index, loan volume index and confidence index all increased, while the hiring and farmland price indexes decreased after November highs.
The farmland price index decreased to 44.9 from a 12-month high of 45.6 in November. This marks the 14th straight month that the index has been below 50.0, although some areas with quality land have seen better prices. "Several land auctions in our area this past month have shown steady to slightly stronger prices," said Dan Coup, CEO of First National Bank in Hope, Kansas.
The hiring index slipped to 33.6 from an already weak 36.3. The hiring index has not been above 40.0 for over 16 months and only 6% of surveyed bankers reported an upturn in hiring.
Farm equipment sales increased during December. The index increased to 40.4, which is the first time it has been above 40.0 since November 2008. Loan volumes also increased, coming in at 45.7 and rebounding from November’s record low of 38.3. The index is the highest since June of this year.
The confidence index, which indicates banker’s outlook on the rural mainstreet economy six months out, increased to 53.7, marking the third consecutive month that the index remained above growth neutral.
Outlook
Many farmers have not had a chance to even think about buying more land to expand operations this year because of the late harvest. Land has been selling, but we expect an increase sales and prices in January when farmers will finally have an opportunity to purchase new ground.
Credit has been tight across rural mainstreet for a few months now, but it was good to see the loan volume bounce back from its low of 38.3 last month. The survey revealed that over half of bankers reported that weak credit conditions were due to bank regulators. "The federal government tells banks to lend to small business, but the regulators don't have the same message," said Pete Haddeland, president of the First National Bank in Mahnomen, Minnesota.
Finally, it is promising to see that the confidence index remained above 50.0 in December, pushing the overall RMI to 40.9, marking four months of consistent growth.
Disclosure: No positions
]]> Mon, 28 Dec 2009 15:22:42 -0500 T. Marc Schober T. Marc Schober submits:
The overall Rural Mainstreet Index (RMI) climbed to a 17-month high, according to Creighton University’s November survey of bank CEOs in an 11-state region. The RMI rose to 40.9, which is the highest since July 2008 but is still considerably below growth neutral of 50.0. The farm equipment index, loan volume index and confidence index all increased, while the hiring and farmland price indexes decreased after November highs.
The farmland price index decreased to 44.9 from a 12-month high of 45.6 in November. This marks the 14th straight month that the index has been below 50.0, although some areas with quality land have seen better prices. "Several land auctions in our area this past month have shown steady to slightly stronger prices," said Dan Coup, CEO of First National Bank in Hope, Kansas.
The hiring index slipped to 33.6 from an already weak 36.3. The hiring index has not been above 40.0 for over 16 months and only 6% of surveyed bankers reported an upturn in hiring.
Farm equipment sales increased during December. The index increased to 40.4, which is the first time it has been above 40.0 since November 2008. Loan volumes also increased, coming in at 45.7 and rebounding from November’s record low of 38.3. The index is the highest since June of this year.
The confidence index, which indicates banker’s outlook on the rural mainstreet economy six months out, increased to 53.7, marking the third consecutive month that the index remained above growth neutral.
Outlook
Many farmers have not had a chance to even think about buying more land to expand operations this year because of the late harvest. Land has been selling, but we expect an increase sales and prices in January when farmers will finally have an opportunity to purchase new ground.
Credit has been tight across rural mainstreet for a few months now, but it was good to see the loan volume bounce back from its low of 38.3 last month. The survey revealed that over half of bankers reported that weak credit conditions were due to bank regulators. "The federal government tells banks to lend to small business, but the regulators don't have the same message," said Pete Haddeland, president of the First National Bank in Mahnomen, Minnesota.
Finally, it is promising to see that the confidence index remained above 50.0 in December, pushing the overall RMI to 40.9, marking four months of consistent growth.
Disclosure: No positions

Complete Story »]]> T. Marc Schober Monsanto: New Corn Seed Helping to Trim Refuge Requirements http://seekingalpha.com/article/177444-monsanto-new-corn-seed-helping-to-trim-refuge-requirements?source=feed 177444 The agriculture world has drastically changed over the past 15 years thanks genetically modified seeds, and now corn is going to change again in 2010. Since 1996, corn seed containing the bacteria protein, Bacillus thuringiensis (Bt), have become farmers' staple corn seed because it has a natural insecticide built into its DNA that protects the plant against many insects, including the European Corn Borer.

Monsanto's (MON) new seed called SmartStax, has been approved by the Environmental Protection Agency (EPA) for a reduction in refuge acres from 20% down to 5%. The SmartStax technology was developed by Dow (DOW) AgroSciences and Monsanto through a cross licensing agreement and research and development collaboration signed in 2007. "The technologies at work in SmartStax will provide increased value on the farm through more thorough control of insects and weeds and from the significant upside potential through refuge reduction. All totaled, we estimate the SmartStax hybrid system could provide an estimated yield benefit of an additional 4% to 10% on the farm," Carl Casale, executive vice president, strategy and operations, Monsanto Company.

]]> Wed, 09 Dec 2009 17:10:05 -0500 T. Marc Schober T. Marc Schober submits:

The agriculture world has drastically changed over the past 15 years thanks genetically modified seeds, and now corn is going to change again in 2010. Since 1996, corn seed containing the bacteria protein, Bacillus thuringiensis (Bt), have become farmers' staple corn seed because it has a natural insecticide built into its DNA that protects the plant against many insects, including the European Corn Borer.

Monsanto's (MON) new seed called SmartStax, has been approved by the Environmental Protection Agency (EPA) for a reduction in refuge acres from 20% down to 5%. The SmartStax technology was developed by Dow (DOW) AgroSciences and Monsanto through a cross licensing agreement and research and development collaboration signed in 2007. "The technologies at work in SmartStax will provide increased value on the farm through more thorough control of insects and weeds and from the significant upside potential through refuge reduction. All totaled, we estimate the SmartStax hybrid system could provide an estimated yield benefit of an additional 4% to 10% on the farm," Carl Casale, executive vice president, strategy and operations, Monsanto Company.


Complete Story »]]> MON DOW T. Marc Schober Investors Interested in Farmland Again http://seekingalpha.com/article/170880-investors-interested-in-farmland-again?source=feed 170880 Investors are showing interest in global farmland again. Besides individual investments in US farmland, foreign farmland has taken the spotlight. Areas like Canada, Africa, and Australia are becoming targets for farmland investors.

In 2008, while food prices soared to all time highs, farmland values increased by double digits across the US and globally. In the second half of 2008, food prices fell and so did farmland values. The difference between farmland and other investments is that farmland was able to fare the economic storm without too much lost value.

]]> Tue, 03 Nov 2009 12:40:52 -0500 T. Marc Schober T. Marc Schober submits:

Investors are showing interest in global farmland again. Besides individual investments in US farmland, foreign farmland has taken the spotlight. Areas like Canada, Africa, and Australia are becoming targets for farmland investors.

In 2008, while food prices soared to all time highs, farmland values increased by double digits across the US and globally. In the second half of 2008, food prices fell and so did farmland values. The difference between farmland and other investments is that farmland was able to fare the economic storm without too much lost value.


Complete Story »]]> DBA T. Marc Schober Protect Your Money with Farmland http://seekingalpha.com/article/159773-protect-your-money-with-farmland?source=feed 159773 At Farmland Forecast we typically highlight our outlook on farmland and agriculture. Today we are providing our view on the US stock market and economy, which will help us explain why now is the time to invest in farmland. We see now as an important time to protect your money.

The equity markets have seen a significant run since mid-March on hopes that government stimulus will spark an economic recovery during the second half of 2009. The market is currently pricing in a "V" shaped recovery. When the market realizes the recovery will be slow and more "L" shaped, the markets will sell off drastically to adjust for the lower growth expectations.

]]> Thu, 03 Sep 2009 06:34:11 -0400 T. Marc Schober T. Marc Schober submits:

At Farmland Forecast we typically highlight our outlook on farmland and agriculture. Today we are providing our view on the US stock market and economy, which will help us explain why now is the time to invest in farmland. We see now as an important time to protect your money.

The equity markets have seen a significant run since mid-March on hopes that government stimulus will spark an economic recovery during the second half of 2009. The market is currently pricing in a "V" shaped recovery. When the market realizes the recovery will be slow and more "L" shaped, the markets will sell off drastically to adjust for the lower growth expectations.


Complete Story »]]> SPY T. Marc Schober Farmland Yields More Than Just Crops http://seekingalpha.com/article/154778-farmland-yields-more-than-just-crops?source=feed 154778 Farmland is unlike any other investment as it can weather economic storms, yield consistent returns, act as a hedge against inflation, and pay investors for holding it. U.S. farmland values have increased roughly 6.7% over the last 20 years and 4.5% over the last 100 years. U.S. farmland has also paid its owners cash rents of roughly 5.8% of its value since 1987. When combined, farmland has returned to investors 12.5% per year over the past 20 years.

]]> Tue, 28 Jul 2009 16:41:00 -0400 T. Marc Schober T. Marc Schober submits:

Farmland is unlike any other investment as it can weather economic storms, yield consistent returns, act as a hedge against inflation, and pay investors for holding it. U.S. farmland values have increased roughly 6.7% over the last 20 years and 4.5% over the last 100 years. U.S. farmland has also paid its owners cash rents of roughly 5.8% of its value since 1987. When combined, farmland has returned to investors 12.5% per year over the past 20 years.


Complete Story »]]> T. Marc Schober Global Farmland Disappearing at an Alarming Rate http://seekingalpha.com/article/144180-global-farmland-disappearing-at-an-alarming-rate?source=feed 144180

An investment tip from Mark Twain: "Buy land. They're not making it anymore."

Farmland is disappearing across the world at an alarming rate. Hundreds of thousands of acres across the globe are disappearing due to climate change, erosion, and urban development. The American Farmland Trust estimates that farmland is disappearing at a rate of 2 acres per minute.

]]> Fri, 19 Jun 2009 07:08:52 -0400 T. Marc Schober T. Marc Schober submits:

An investment tip from Mark Twain: "Buy land. They're not making it anymore."

Farmland is disappearing across the world at an alarming rate. Hundreds of thousands of acres across the globe are disappearing due to climate change, erosion, and urban development. The American Farmland Trust estimates that farmland is disappearing at a rate of 2 acres per minute.


Complete Story »]]> DBA MOO T. Marc Schober Why Invest in Farmland? http://seekingalpha.com/article/142569-why-invest-in-farmland?source=feed 142569 Everyone has to eat in order to survive. The production of almost all food can be traced back to farmland around the world in some way. Demand is growing for farmland as the world's population and global needs for food are growing. What many don't realize is that the supply of farmland is not changing, thus creating a severe imbalance in the supply and demand of farmland.

An investment in farmland over the long-term will provide a steady stream of income and capital gains due to the increasing global demand for agricultural commodities, driven by the rising world population, rapid growth in emerging markets, and continued demand for ethanol and bio-fuels. Demand for agricultural commodities is outpacing supply, which positions farmland for long-term appreciation.

]]> Thu, 11 Jun 2009 04:18:46 -0400 T. Marc Schober T. Marc Schober submits:

Everyone has to eat in order to survive. The production of almost all food can be traced back to farmland around the world in some way. Demand is growing for farmland as the world's population and global needs for food are growing. What many don't realize is that the supply of farmland is not changing, thus creating a severe imbalance in the supply and demand of farmland.

An investment in farmland over the long-term will provide a steady stream of income and capital gains due to the increasing global demand for agricultural commodities, driven by the rising world population, rapid growth in emerging markets, and continued demand for ethanol and bio-fuels. Demand for agricultural commodities is outpacing supply, which positions farmland for long-term appreciation.


Complete Story »]]> RJA DBA T. Marc Schober