| Will
farmland in our region follow commodity prices lower?
Dennis
Badger, Vice President Collateral Risk Management
After
nearly a decade of following commodity prices up, farmland values throughout
the Midwest have started to decline in response to lower grain prices. Not
surprisingly, the biggest declines in land values have occurred as a correction
in Corn Belt states where the biggest gains in land values occurred. How has
our four-state area of Indiana, Ohio, Kentucky and Tennessee compared? To find
out, Farm Credit Mid-America appraisers researched and analyzed 4,000 land
sales in 2015 and compared it to over 100,000 land sales in our proprietary
historical database.
Agricultural property values have declined
significantly in Midwestern corn and soybean states. In Iowa, farmland prices fell an average of 15 percent over 2014-15,
so we expected that farmland values in Indiana would be hit hard, too. But, the
decline in Indiana was less than three percent from 2014-15. Ohio, Kentucky,
and Tennessee actually gained slightly in that period. We believe income
diversification and less reliance on commodity prices have helped moderate
land values in our area.
Land Value Yearly Change Comparison
|
State
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2009-2010
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2014-2015
|
|
Indiana
|
27% increase
|
3% decline
|
|
Ohio
|
14% increase
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0.2% increase
|
|
Kentucky
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14% increase
|
3% increase
|
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Tennessee
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7% increase
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2% increase
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Though retail non-ag sales have provided some
protection to land values, commodities are still a factor and land prices could
still face pressure in the future due to general economic uncertainty, rising
interest rates and other factors. Moreover, a general trend in farmland price
declines in the Corn Belt may eventually affect land values here.
2016
Expectations
In our four-state area,
we don’t expect a rapid rebound in commodity prices or land values anytime in
the next few years and farm incomes and balance sheets could be pressured. There will
likely be fewer land buyers, which means increased marketing time for listed
properties with stable-to-declining farmland property values. Land owners who
don’t need to sell are likely to hold onto land, resulting in a decreased
number of properties on the market.
Cash rents may need to be negotiated if commodity
prices stay low, so landlords and farmers may want to consider a flexible farm
lease agreement tied to gross farm income. Some owners and tenants use flexible
lease agreements where the rent is not determined until after the crop is
harvested. The final rental rate is based on actual prices and/or yields
attained each year.
Stay Conservative
Many
farmers took advantage of strong incomes and reduced debt levels over the past
few years, but USDA projections for 2016 indicate slightly higher debt compared
to last year. An increase in operating loans and declining land values may
create more risk with higher debt-to-asset levels in the future. Now is the
time for farmers to watch their balance sheets closely and maintain a cautious
approach in pursuing any land purchase or rental opportunities. Treat land as a
capital purchase – if it
doesn't make financial sense on the bottom line and won’t make a profit in the
next five to 10 years at expected commodity price levels, then consider holding
off on the purchase.
A focus on production efficiency, cost
reduction and flexible lease negotiations is more advisable than expansion
right now. Rather than buying more land, a safer investment might be adding
improvements such as tile drainage or irrigation to your current land. Quality
land holds its value better than marginal land, and improvements that enhance
yield and income potential also help.
Factors that Affect Land Values
• Location
• Crop and livestock prices
• Production yields and weather situations
• Land quality
• Land improvements
• Declining net farm income
• Interest rate changes
• Oil/gas leasing
• Timber
• Recreational/hunting uses
• Rural residential demand
• Investor speculation
•
Proximity to linkages such as grain
terminals, rail and interstate
Farm
Credit is committed to being a reliable source of credit for customers in any
economy. We encourage you to always make borrowing and buying decisions based not
only on opportunities but also business need.
|
| The Purdue Succession Planning & Women in Agriculture Teams would like to invite you to participate in the upcoming Farming Together Series. The focus of this session will be on “Planning for Retirement and Estate Management”.
Day 1 of the workshop will run from 9 a.m. to 4 p.m. and includes lunch. This session is highlighted by the following presentations:
· Ready, Set, Retire…Wait! How Do I Do That?! Like the rest of America, Indiana farmers are graying. Farm families face challenges related to retirement planning and implementation. Find out your options for retirement today.
· What’s it Worth if You Stay on the Farm? Equal is not always fair. An equitable division needs to address on-farm heir compensation and the ability of the on-farm heir to maintain the farm family business.
· Crafting Your Estate Plan Estate planning is an important piece of your farm’s overall succession plan. In this session, participants will walk through the roadmap for crafting an estate plan for your family and farm: exploring estate planning goals, assessing your current estate, considering risks and then understanding what estate planning tools could work best for you.
· Taking the Dys out of Dysfunctional: Developing Functional Farm Meetings Farm meetings can be quite dysfunctional given the added pressure of working with family. Learn ways to adjust to different communication methods and generational differences while focusing on the ultimate goal of avoiding a dysfunctional farm meeting through this interactive session on developing a functional farm meeting.
Day 2 is a complimentary one-hour farm family meeting with members of Extension’s Farm Succession Planning Team.
Sessions will take place at the following locations:
• Seymour: Community Foundation of Jackson Co., January 12-13, 2016 (Registration due December 29th)
• Wabash: REMC Building, January 26-27, 2016 (Registration due January 12th)
• Danville: Hendricks County Extension Office, February 2-3, 2016 (Registration due January 19th)
• Evansville: Vanderburgh 4-H Center, February 9-10, 2016 (Registration due January 26th)
• Rensselaer: Jasper County Fairgrounds, March 1-2, 2016 (Registration due February 17th)
Cost is $150 for the first four family members and $15 for each additional member. Registration forms are will be available on the Purdue Women in Agriculture website at https://ag.purdue.edu/extension/wia/Pages/default.aspx or is attached to this email.
For more information, contact Denise Schroeder, Purdue Extension educator, at 219-984-5115 orschroedd@purdue.edu .
Funding for the workshop was provided by the North Central Risk Management Education Center. |
| December 8, 2015
1:00-2:00 p.m. EST
Indiana corn and soybean farmers have seen a sharp
decline in gross revenue in 2014 and 2015. This revenue decline is
putting pressure on operating margins. Unfortunately, the decline in
revenues is not being matched by a decline in costs. This is causing
farmers to ask “Should we continue to rent land if I fully expect to lose
money?” and “How much of a premium can I pay to hold on to a property hoping
for a change in profits?”
Michel Langemeier and Jim Mintert with the Purdue
Center for Commercial Ag will help address how to answer these questions by
assessing the implications of farming a property at a loss on the working
capital of the farm. They will do this by introducing the Long Term Cash
Rent tool that is available on the Purdue Center for Commercial Ag website.
How do I join?
All you have to do is click on the link below and
register, simple as that! You will then receive a confirmation email with the
link to participate in the webinar at 1 (EST) on December 8th. You
will also receive a reminder 24 hours before the webinar is set to start.
https://goo.gl/Rn4ltH
Sponsored by:
Purdue
Extension Women in Ag Team |
|
"Contingency Planning for Your Family and Farm
Operation"
The Purdue Women in
Agriculture Team found a need for a farm families and small business to have
one central location to collect critical business information required for day
to day operations. In the event of a crisis in the operation, the business would
be able to continue with minimal disruptions in a timely fashion while
utilizing the code red document. The crisis may be only for a short time or it
may be a long term change in the operation but the need for timely information
about the people in the operation and their contacts are very important.
The document is set
up in an Excel spreadsheet with two main sections, Personal and Farm Business
and 16 sub categories within those sections.
Personal Section : Personal
Information, Personal Social Media, Personal Business Contact List, Power of
Attorney, Important Personal Documents, Non- Farm Personal inventory , Personal
Investments, Personal Medical Information,
Final Arrangements.
Farm (or Other Small
Business)Section: Farm Business Structure, Farm Finances, Important Farm
Documents, Farm Business Contacts, Farm Social Media, Farm Inventory, Farm
Employment Inventory.
The Code Red Document has been designed to flexible to fit
your operation’s needs. You have the ability to add and delete lines as needed.
You can order a Code Red Flash Drive and Lanyard with the
Excel file loaded on it for $6.00 or
without the lanyard $4.00 at https://ag.purdue.edu/Extension/wia/Pages/CodeRed.aspx |
| Matt Monteiro, VP of finance and treasurer of Farm Credit
Mid-America says considering that the Fed is anticipating short term interest
rates will increase later this year or in early 2016, farmers with variable
rates would be impacted the most. “So
any farmers that are in that kind of situation where they have variable rate
debt should consider locking it at this point because that opportunity won’t be
around forever,” Monteiro said. Monteiro
says farmers with fixed rates would be insulated from any increase in interest
rates on their current loans.
Listen to
the full interview here: http://bit.ly/1JUSxpf
|
| Needing Christmas gift ideas for the gardener in your life?
The popularity of gardening has made it simple to find the perfect gift sure to
be enjoyed by any avid gardener.
Good gardening tools often head the gardener's wish list. A
sturdy new rake, hoe or spade can save both time and a tired back for the busy
gardener. Small hand tools, such as pruners, trowels and cultivators, are handy
both inside and out. For bulb gardeners, a long-handled bulb planter or a bulb
drill bit can help make the job easier. Bird baths, feeders, and bird feed all
make wonderful gifts.
Gardening books are available on a wide variety of subjects
and can help your special gardener improve his or her gardening skills. One of
my favorite books, "Possum in the Pawpaw Tree; A Seasonal Guide to
Midwestern Gardening," published by the Purdue University Press, is
available in local bookstores or directly from Purdue Press by calling (800)
933-9637. The book, divided by the months, provides gardening tips, answers,
and suggestions for indoor, outdoor, lawn, and garden care. Another book,
“Indiana Gardeners Guide”, by Tyler and Sharp, offers growing advice for plants
specifically grown in Indiana.
If you're still undecided on a gift for your gardener, try a
gift certificate from their favorite seed company or local garden shop. Give a
membership to a nearby botanic garden, conservatory or arboretum. Or, send them
a subscription to a garden magazine. Another gift option might be a
computer program on home landscape design, or maybe register them for a
gardening class or other educational program What about an all day trip to a
local flower show, tour, or other guided program?
There are many options available when selecting the perfect
gift for the home gardener. Whether its tools, books, or educational classes,
you are sure to find the perfect gift for your gardener.
The Purdue Extension Service has a website where you can
find great gift ideas from Purdue. The media webpage includes educational CD’s
such as Snakes of the Midwest and Trees of Indiana. Also available is the Home
Winemakers Guide, Vegetable Garden Guide on CD, and Turtles of Indiana booklet.
Check out their website at https://edustore.purdue.edu
or contact your local Purdue Extension Office.
|
| Did you
miss out on participating in any of the webinars offered by the Purdue Women in
Agriculture Team this year? If so, then
you are in luck. All the recorded
webinars are now available online for your viewing pleasure. Each webinar lasts
up to an hour and can be found on the Purdue Women in Agriculture website (https://ag.purdue.edu/Extension/wia/Pages/webinars.aspx). Below you will find a brief description of
each of the webinars currently available.
Effective
Management of Farm Employees
- This webinar was facilitated
by Phil Durst and Stan Moore from
Michigan State University. These Extension Senior Educators provided
education on the impact of personnel management on the engagement of employees
based on phone interviews with dairy farm employees. They covered
training, communicating performance standards, how to encourage mental
involvement, and provide feedback.
Code Red
- This
webinar covered the Code Red tool developed by the Purdue Women in Agriculture
Team. Code Red is a tool that includes important information such as
passwords, bank account information, rental agreements, insurance papers and power
of attorney documents and much more in one easy location.
Gaining Ground
on Arthritis
- Amber
Wolfe with the National AgrAbility project
team presented this webinar that focused on increasing awareness of arthritis,
identifying activities on the farm that may escalate the severity of arthritis,
promoted methods of prevent and control and provide additional information
about farm modifications, assistive technology, and tools.
Future
webinars are currently being planned.
Please be on the lookout for press releases stating when the next
webinar will be. If you have any
suggestions for a webinar topic, please contact Amanda Veenhuizen (aveenhuizen@purdue.edu) or Jenna Nees (smith535@purdue.edu)
with your ideas. |
| Arthritis is the leading causing of disabilityin the United States, affecting 50 million adults and 300,000 children. Of the many forms, Osteoarthritis affects 27 million adults. Agriculture is a very demanding occupation, often requiring work above and beyond their body's physical capabilities, which puts farmers, ranchers, and employees at danger for joint injury, stress, and strain. An estimated 1/3 of all adult farmers in the US have some form of arthritis. By partnering with The National AgrAbility Project, the Arthritis Foundation is gaining ground on arthritis, and helping to make agriculture and rural America more accessible.
Our presenter will be Amber D. Wolfe, M.S. She joined the National AgrAbility project team in 2009 as the AgrAbility project coodinator for the Arthritis Foundation. Her work on the arthritis and agriculture project covers both state and national levels and is focused on rurla audiences of all ages and experiences. She serves as a resource for fufal arthritis issues. Amber provides training to professionals and consumers via rural arthritis workshops and also assists in developing resources related to rural arthritis. Amber has brought her experience with 4-H and FFA youth into the AgrAbility area by working with rural youth to prevent the early-onset of osteoarthritis in their generation.
What will I gain from this webinar?
The goal of this one-hour webinar is to:
- Increase awareness of arthritis prevalence in rural America
- Identify activities on the farm that may escalate the severity of arthritis
- Promote methods of prevention and control, including pain management
- Information on farm modifications, assistive technology, and tools will also be discussed
- Effects on rurla youth, livestock production, and gardening are all possible examples
- Provide an overview of the USDA AgrAbility Program and the Indiana AgrAbility Project, with information on funded participating partners: The Purdue University Breaking New Ground Resource Center, Hoosier Uplands, and the Arthritis Foundation-Heartland Region
I am interested, how do I join?
All you have to do is click on the link below and register, simple as that! You will then receive a confirmation email with the link to participate in the webinar scheduled for 12 noon (EST) on September 24th. You will also receive a reminder 24 hours before the webinar is set to start.
https://goo.gl/R8Eq1l
What if you cannot make the scheduled time?
No problem! This webinar is going to be recorded so you can review later. To ensure you get access to the recorded version, please go ahead and register. Once the webinar is over, we will then send out an email with a link to the recorded version to those who have registered. However, we recommend that you try to participate in the live recording becuase that will provide you with a time to ask questions and interact with the speakers.
Interested in more of our webinars?
January 28, 2016 - Downsizing Your Financial Maze
February 25, 2016 - Becoming a Legitimate Player - Collectively Market your Business and Industry at the Same Time
|
| Come Learn about Code Red at the 2015 Becknology Days. We
will be presenting Code Red during the lunch hour all three days August 27-29th.
You will learn about how it works and will be able to buy the Flash Drive. Becknology
days are held at the Beck Hybrid’s headquarters near Atlanta Indiana.
What is the Code Red Document?
The Code Red document was developed as a result of a
brainstorming session at the 2011 Midwest Women in Ag Conference. The Purdue
Women in Agriculture Team found a need for a farm families and small business
to have one central location to collect critical business information required
for day to day operations. In the event of a crisis in the operation, the
business would be able to continue with minimal disruptions in a timely fashion
while utilizing the code red document. The crisis may be only for a short time
or it may be a long term change in the operation but the need for timely
information about the people in the operation and their contacts are very
important.
A team of Extension Educators led
by Kelly Heckaman of Kosciusko County and Bryan Overstreet of Jasper County
developed The Code Red Document. The document is set up in an Excel spreadsheet
with two main sections, Personal and Farm Business and 16 sub categories within
those sections.
Personal Section : Personal Information, Personal Social Media, Personal
Business Contact List, Power of Attorney, Important Personal Documents, Non-
Farm Personal inventory , Personal Investments, Personal Medical Information, Final Arrangements.
Farm (or Other Small Business)Section: Farm Business Structure,
Farm Finances, Important Farm Documents, Farm Business Contacts, Farm Social Media,
Farm Inventory, Farm Employment Inventory.
The Code Red Document has been designed to flexible to fit
your operation’s needs. You have the ability to add and delete lines as needed.
“The Code Red document is to be used to keep information such as where your will and
other legal papers are located, business contact information, even details of
your daily operation such as lease information, inventory, and where keys are
located.
Bill and Kassie Fordice users of Code Red made this comment
“I think it's something everyone should be using. There is so much going on
with this business that when you lose key people it'll be a good resource to
their information.”
You can order a Code Red Flash Drive and Lanyard with the
Excel file loaded on it for $6.00 at
https://ag.purdue.edu/Extension/wia/Pages/CodeRed.aspx or Google Purdue Women in Ag –code red
We will also keep this site up to date with training
sessions across the state.
Whatever your need or situation, we hope the Code Red book
will be your “go to” book. We hope this resource will help farm families turn a
code red situation into a code green and the business can continue to operate.
|
|
INDIANAPOLIS, Ind. - Purdue Extension has presented two Women in Agriculture awards to honor the recipients for their exceptional work and leadership in their profession.
The awards were given Wednesday (Aug. 19) during the lieutenant governor's Celebration of Agriculture program at the Indiana State Fair.
Beth Archer of Danville and executive director of AgrIInstitute was given the Leadership Award, which recognizes women in policymaking and agribusiness ventures. She has worked for AgrIInstitute for 25 years and guides the Indiana Agriculture Leadership program with over 400 graduates.
Archer has served on the Indiana Rural Development Council and the Indiana Cooperative Development Center as chairperson for both organizations.
Linda Baird of Scottsburg received the Achievement Award, which recognizes women in a home farming operation. She was chosen because of her work in Cornucopia, a grain and agritourism operation that hosts more than 5,000 student visitors in the fall.
Baird also is one of the five women who founded SWAG, an acronym for See What Ag Gives, for Washington County in 2014. She volunteers with FFA and as a 4-H club leader.
"The Purdue Extension Women in Ag team is committed to providing educational opportunities, resources and a network of support for all women in the agriculture industry," said Danica Kirkpatrick, engagement program manager for Purdue Agriculture and Women in Agriculture awards co-chair. "These awards allow us to recognize the women who lead by example and continue to help Indiana agriculture grow."
The organization provides local, regional and statewide skill development programs; networking events that engage sponsors and stakeholders; and resources through multiple types of media.
Article Found here: https://www.purdue.edu/newsroom/releases/2015/Q3/2-receive-top-honors-of-purdue-extensions-women-in-ag.html |
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