We invest directly in farmland across the U.S. Corn Belt and a 5% ROI is attainable in each state, but it will take substantial efforts to source the correct property. Via cash rental contracts, 5% is not unheard of while crop share leases are more volatile, yet can reach higher returns.
Severe Drought Affecting Rural Economics [View article]
The Creighton University RMI can be found at: http://bit.ly/O0YuFU. The farmland price index is under the farming portion. We track the historical data of these indexes as well.
Severe Drought Affecting Rural Economics [View article]
CORN is interesting because it takes into account multiple future contracts. You'll have to go to Teucrium's website for the prospectus, but exposing yourself to long-term corn prices is a great option through CORN.
I also appreciate everyone's personal crop reports. It sure it hot and dry out there, even for this time of year.
Crop Progress: Corn Crop In Critical Condition [View article]
The weekly USDA Crop Progress Report provides us with weekly crop conditions and it looks like the harvest may go very quickly for farmers because many fields have already burned up in the central and eastern Corn Belt. Rain at this point still won't save all of the corn because pollination was so far ahead of schedule due to the heat stress. Poor yields are already in place for the 2012 corn crop.
Keep in mind that when data comes out on a bumper crop in spring, all conditions must remain optimum. The weather rarely works out the be optimum.
Crop Progress: Corn Crop At Alarming Conditions [View article]
It sure has been a difficult summer when it comes to weather. Anywhere north of Minneapolis has got too much rain while farmers are reporting very poor conditions in southern MN, IA, IL, IN, etc.
Farmland Values Increase 25% For Second Consecutive Year [View article]
Not as much fund investment as one would think. The majority of buyers, 74% according to Iowa State, are farmers. That number has increased from 2010 to 2011 while the percentage of buyers who are investors shrunk.
That's a great question. In our recent observations of farmland purchasers across the Corn Belt, the primary buyers are farmers. Iowa State recently found that the percentage of farmland buyers who are farmers increased from 70% to 74% this year while investors have decreased as a percentage.
Western ND is certainly a different region than most of the Corn Belt as the Bakken shale is present along with much less annual precipitation. Much of the farmland purchases that are driving prices higher have zero connection to RE speculation, rec land, oil or other factors outside of farming.
I'm glad you enjoy our monthly report. We will be starting our crop progress reports within the next couple months as well. The March 30th USDA Report will dictate the markets until planting season.
Crop Progress: Corn And Soybean Conditions Decrease [View article]
Mr. Tweed - Growing up my parent's farmer always said that in every 10 years, you'll have 2 great ones, 2 bad ones, and 6 average ones. The great ones get you through those bad years. Farmers are due for a good weather year here before long.
The USDA Report should be interesting. At this stage in the year, I could see things going either way. I don't imagine the USDA likes having commodity prices sitting as high as they currently are, but it's hard for them to adjust anything in the weekly crop progress reports when the corn crop is actually getting worse. On the 12th, I could see average yield decreasing, but somehow demand decreasing to help partially offset it. If one thing is for certain, you never know what could come out of a WASDE.
Crop Progress: Corn Silking Slowly Continues, Soybean Conditions Better Than Last Year [View article]
I agree tweedn. The weather has been very unpredictable. Some areas have flooding and 100 miles away they are dry. If the U.S. can hit the 158.7 bushels per acre yield mark from USDA, I have a feeling there will be a lot of variance. In the upper Midwest here, some corn fields look the best we have ever seen while others look rough.
Rural Economy Continues to Improve, But Flooding Constrains Growth [View article]
I agree. Just yesterday we got pounded here in the Midwest with storms. Tornado sirens were going off all afternoon here in MN. I'm sure there was hail damage in some areas as well.
Corn Planting Progress at 40%, Still Behind Schedule [View article]
That's very interesting about the amount of wheat being planted. The high here today in Minneapolis is in the upper 80s which could bring some severe storms tonight and into tomorrow. The weather is awfully unpredictable in the Corn Belt and I have a feeling the markets will be tied to the weather forecasts for a while now.
Farmland Price Index Climbs 16% [View article]
Crop Progress: Corn Conditions Decline For Eighth Straight Week [View article]
Severe Drought Affecting Rural Economics [View article]
Severe Drought Affecting Rural Economics [View article]
I also appreciate everyone's personal crop reports. It sure it hot and dry out there, even for this time of year.
Crop Progress: Corn Crop In Critical Condition [View article]
Keep in mind that when data comes out on a bumper crop in spring, all conditions must remain optimum. The weather rarely works out the be optimum.
Crop Progress: Corn Crop At Alarming Conditions [View article]
Farmland Values Increase 25% For Second Consecutive Year [View article]
Crop Progress: Corn Condition Well Above Average [View article]
Rural Economy Slows In April [View article]
Western ND is certainly a different region than most of the Corn Belt as the Bakken shale is present along with much less annual precipitation. Much of the farmland purchases that are driving prices higher have zero connection to RE speculation, rec land, oil or other factors outside of farming.
I hope that helps answer your question.
Soybeans Rally To 5 Month High [View article]
Crop Progress: Corn Harvest on Schedule [View instapost]
Crop Progress: Corn And Soybean Conditions Decrease [View article]
The USDA Report should be interesting. At this stage in the year, I could see things going either way. I don't imagine the USDA likes having commodity prices sitting as high as they currently are, but it's hard for them to adjust anything in the weekly crop progress reports when the corn crop is actually getting worse. On the 12th, I could see average yield decreasing, but somehow demand decreasing to help partially offset it. If one thing is for certain, you never know what could come out of a WASDE.
Crop Progress: Corn Silking Slowly Continues, Soybean Conditions Better Than Last Year [View article]
Rural Economy Continues to Improve, But Flooding Constrains Growth [View article]
Corn Planting Progress at 40%, Still Behind Schedule [View article]