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September 2010 Archive for Farmland Forecast

RSS By: Marc Schober, AgWeb.com

Marc Schober is the editor of Farmland Forecast an educational blog devoted to investments in agriculture and farmland.

Cotton Prices Near 15 year High

Sep 28, 2010

Cotton prices are above $1 per pound, the first time since 1995. Prices have risen more than 40% since July due to strong demand, tight supplies, and strong buying from speculators. Prices may continue to stay above a $1 per pound though 2011 as global demand exceeds supplies, creating an imbalance that will not be solved anytime soon.

Supply concerns have been prominent around the world as floods in Pakistan, heavy rains in China, and India capping cotton exports have led global inventories in 2010 to decline to roughly 45 million bales, the lowest since 1996.



Supply Concerns

China, the world’s largest producer and consumer of cotton, has been plagued with heavy rains, putting concerns on local supplies. Cotton production fell by 14.7% to 6.4 million tons in 2009 and is expected to be roughly flat in 2010. The USDA estimates that in 2010, China’s ending stocks of cotton will be 16 million bales, the lowest in over a decade.

Strong demand from textiles and end users has led to a 3.6 million ton deficit in 2009 and a 2.6 million ton deficit the year prior. In order to meet the deficit, China has been increasing imports as well as auctioning government reserves.

China has auctioned over 1.3 million tons of reserves this year and is expected to auction a further 300,000 to 400,000 tons to satisfy demand. China’s cotton imports have also rose 73% from last year to roughly 2.5 million tons.

India, which is facing wet weather in the north and dryness in its top two producing states, had capped exports of cotton in order to protect domestic supplies. India is the world’s second largest exporter of cotton and has announced it will limit shipments of cotton to 5.5 million bales in 2010 starting in October.

Pakistan, the worlds’ fourth biggest cotton producer, has faced severe floods that have wiped out 20% of their cotton crop. Cotton production in 2010 is expected to be 15% below the prior year, which has increased imports by over 60% according to the USDA.

Despite all the weather concerns around the world, the U.S. is actually expecting a bumper crop in 2010. Production is expected to increase 55% in 2010 due to excellent growing conditions and increased acreage. The U.S., which is the world’s largest exporter of cotton and exports 80% of production, has been able to pick up the decrease in supply around the world.

Exports are expected to rise 30% in 2010, according to the USDA. The increase in exports is taking a toll on supplies however, as the increased foreign demand will push the 2010 ending stocks to use ratio to 14%, the lowest in 14 years.



Speculative Demand

Fund flows from non-commercial participants have put pressure on cotton prices as well, as net long positions in cotton have rose five-fold since July. Open interest in futures contracts have increased over 50% in the same time period. The large amount of speculative interest in cotton leaves us somewhat concerned that there may be a quick pull-back if supplies start to loosen.

Outlook

Tightening supplies, not only in cotton, have sent commodity prices rocketing over the last few months. A weaker dollar, improving economic outlook, and demand for real assets has propelled commodities forward.

Cotton supplies are at a multi-decade low and expectations are for the global market to remain tight. In the short-term it is hard to justify putting more capital in cotton at prices around $1 per pound and with speculative interest so high. On any pullback though, we would look to putting money back into cotton.

Consumption has outpaced production in the last five years and we expect that trend to continue. Enjoy your cheap clothing now, because it is not going to last.

Read more about farmland and agriculture at farmlandforecast.colvin-co.com.

Corn Conditions Continue to Deteriorate

Sep 27, 2010

This afternoon, the USDA released its weekly crop progress report. The corn crop condition deteriorated by two percent over the past week, and now has 3% more of the crop classified as poor or very poor compared to last year’s data. The soybean crop condition remained the same at 63% good or excellent compared to last week’s report.

The USDA estimated 66% of the corn crop is in good or excellent condition, while 13% is in poor or very poor condition. During this week in 2009, 68% of the crop was in good or excellent condition and 10% was in poor or very poor condition.

This week the USDA estimated that 85% of the corn crop was considered mature this week, 69% was mature last week, and the 5-year historical average is 65% in the last week of September.

Of the 18 primary soybean producing states, 13% of the soybean crop is in poor or very poor condition while 63% is in good or excellent condition. The USDA estimated that 77% of soybeans were dropping leaves by this week. Last week it was estimated that 60% were dropping leaves, while the 5-year historical average is 72% in the last week of September.

The spring wheat harvest remains about one week behind historical averages with 89% of the harvest complete so far, while 87% had been harvested by last week. The 5-year historical average is that 98% of the spring wheat crop has been harvested by this week in September.

Corn prices increased 1% over the past week ending at $5.13 per bushel, soybeans were up 4% to $11.29 per bushel, and wheat ended the week down 3%, closing at $7.07 per bushel. Year-over-year corn prices are up 51%, soybeans are up 23%, and wheat is up 55%.

Read more about agriculture and farmland at http://farmlandforecast.colvin-co.com.

Rural Economy Weak; Agriculture Bright Spot

Sep 17, 2010

Bankers continue to see weakness in the rural economy, driven by weak home sales, hiring, and retail sales. Despite the weak economic data, banker confidence is improving due to strong agriculture conditions and improving banking indicators.

The overall Rural Mainstreet Index (RMI) increased slightly to 47.6 this month from August’s 46.0, according to the September survey of bank CEOs in a 10-state region. The RMI is well below readings earlier this year and is the third consecutive month below growth neutral 50.0.

“While the farm sector is experiencing healthy growth, Rural Mainstreet businesses continue to report waning economic fortunes,” said economist Ernie Goss, co-author of the report.

RMI   sept 2010 farmland forecast marc schober greyson colvin

Agriculture

Agriculture continues to be the bright spot in the economy as the farmland price index rocketed to 57.7 in September from 55.3 August. This is the eighth straight month the index has been above growth neutral. Goss noted, “Farm indicators remain very strong, including farmland prices.”

The farmland price index rose in all 10 states surveyed, with strong gains in Iowa, Minnesota, Nebraska, and the Dakotas.

“The general economy is still struggling, but the crop and livestock producers are looking at an exceptional year. Growing conditions are the best in decades, yields are up and prices are good,” commented Kathy Thuman, President of Farmers State Bank. Thuman also noted she is concerned thought about rising farm input costs.

RMI   September 2010 farmland index marc schober greyson colvin

Farm equipment-sales index also improved to 56.2 from 52.7 in August as higher grain prices have encouraged farmers to invest in new equipment. “As the outlook for the farm sector has improved significantly, farmers have likewise expanded their purchases of capital equipment. I see this very positive trend continuing for the rest of 2010,” commented Goss.

Banking

Banking indicators continue to perform well as all indicators were above growth neutral for the seventh straight month. Loan volumes increased to 57.4 from 54.2 in August, checking-deposits improved to 65.6 from 59.1 in August, and certificate of deposits inched higher to 55.0 from August’s 54.2

In the September survey, bankers were asked when they expect the Federal Reserve to begin raising short-term interest rates. Roughly 25% expect a rate hike in the first half of 2011 and 55% expect a rate increase in the second half of 2010. No bankers responded that they expect a rate increase in 2010.

Outlook

Banker’s responses continue to be consistent with the overall economic outlook. Unemployment, housing, and retail sales continue to weigh on the economy. Although the market has moved past the double-dip recession, expectations for growth in the short-term are minimal.

The one bright spot in the economy continues to be agriculture. Strong exports, continued ethanol demand, and low inventory levels have propelled grain prices to multi-year highs.

The focus continues to be on supply disruptions in Eastern Europe, Canada, and China and the risk of lower U.S. yields than expected, but we are focusing on the long-term demand for grains. We believe we are at the beginning of an agriculture boom and with more good news to come.

Read more about farmland and agriculture at http://farmlandforecast.colvin-co.com.
 

Crop Progress: Corn Harvest One Week Ahead of Schedule

Sep 14, 2010

This afternoon, the USDA released its weekly crop progress report. The corn crop condition deteriorated by one percent over the past week, and now has 3% more of the crop classified as poor or very poor compared to last year’s data. The soybean crop condition also deteriorated by 1% compared to last week’s report. The USDA estimated 68% of the corn crop is in good or excellent condition, while 12% is in poor or very poor condition. During this week in 2009, 69% of the crop was in good or excellent condition and 9% was in poor or very poor condition.

This week the USDA estimated that 93% of the corn crop was dented while 86% was last year in the second week of September, and the 5-year historical average is 83%. Out of the entire corn crop, 52% was considered mature by the USDA this week, 33% was mature last week, and the 5-year historical average is 32% in the second week in September.

Of the 18 primary soybean producing states, 13% of the soybean crop is in poor or very poor condition while 63% is in good or excellent condition, which is a 1% change from good or excellent to poor or very poor from last week. The USDA estimated that 38% of soybeans were dropping leaves by this week. Last week it was estimated that 19% were dropping leaves, while the 5-year historical average is 30% in the second week in September.

The spring wheat harvest remains about one week behind historical averages with 83% of the harvest complete so far, while 76% had been harvested by last week. The 5-year historical average is that 91% of the spring wheat crop has been harvested by this week in September. Sugarbeet harvest began this past week for many farmers as 8% of the crop was harvested. The 5-year historical average is 3% harvested by this week in September.

Corn prices increased 4.3% over the past week ending at $4.69 per bushel, soybeans were down 0.4% to $10.25 per bushel, and wheat ended the week up 0.8%, closing at $7.13 per bushel. Year-over-year corn prices are up 53.9%, soybeans are up 10.8%, and wheat is up 65.6%.

Read more about farmland and agriculture at http://farmlandforecast.colvin-co.com.

WASDE: Average Corn Yield Estimate Decreased by 1.5%

Sep 13, 2010

The USDA updated the U.S. and World balance sheet estimates for major agricultural commodities in the World Agricultural Supply and Demand Estimates (WASDE) report on Friday. Hot and dry weather across much of the U.S. caused a reduction in corn yields, especially in the Midwest. Estimates of U.S. corn yields were decreased to 162.5 bushels per acre, below last year’s record of 164.7 bushels per acre. USDA estimates of domestic corn supplies decreased to a seven year low of 1.1 billion bushels.

2010/11 U.S. corn production was decreased by 205 million bushels to 13,160 million bushels on the decrease in average yield. The 2010/11 corn crop is still slated to be the largest on record due to the increased year-over-year planted area. U.S. corn beginning stocks were decreased by 40 million bushels by the USDA, due to higher ethanol use and exports. Domestic corn use for 2010/11 was decreased by 100 million bushels because of a decrease in feed and residual use which was due to increased corn prices. The USDA increased its estimate of U.S. corn exports by 50 million bushels on rising world demand. Ending domestic stocks were reduced by 196 million bushels to 1.1 billion, which is the lowest since 2003/04, putting the stocks to use ratio at a 15-year low. The USDA season-average farm price for corn is estimated at $4.00 to $4.80 per bushel, a midpoint increase of 60 cents. 

Farmland Forecast   US corn stocks to use ratio 2010 marc schober greyson colvin

Global coarse grain trading increased due to the 1.3 million ton increase in U.S. corn exports. Corn import estimates were raised 2.0 million tons for the EU-27 to replace wheat as feed, and Russia’s corn imports were increased by 0.7 million tons as corn will replace barley as feed. World ending stocks for corn were decreased by 3.6 million tons, according to the WASDE Report.
 
The USDA increased its estimate of U.S. soybean production by 50 million bushels to 3.483 billion bushels due to an increase in yields to a record 44.7 bushels per acre. 2010/11 exports were increased by 50 million bushels to 1.485 billion bushels on strong early season sales and an anticipated increase in global import demand lead by China. 2010/11 soybean ending stocks were reduced by 10 million bushels to 350 million bushels because of the increased export demand which more than offset the increased production. U.S. exports were increased by 25 million bushels for 2009/10 due to strong shipments over the final weeks of the marketing year. 2009/10 ending soybean stocks were reduced by 10 million bushels to 150 million bushels because of the increased exports. The USDA season-average farm price for soybeans is estimated at $9.15 to $10.65, up 65 cents from last month as corn and wheat prices have also increased.
 
Global soybean production was estimated at 254.9 million tons, up 1.2 million tons, due to increased production in the U.S. China’s soybean production was reduced by 0.2 million tons to 14.4 million tons on lower yields.
 
U.S. 2010/11 wheat ending stocks were decreased to 902 million bushels because of an increase in demand. Exports were increased by 50 million bushels as wheat supply continues to be a concern in Europe and Asia. The WASDE noted that there is an increased demand for high quality wheat due to poor quality wheat being harvested in parts of the EU-27. The USDA season-average farm price for wheat is estimated at $4.95 to $5.65, up 20 cents from last month’s WASDE.
 
World wheat supplies estimates were decreased by 0.7 million tons on a decrease in global production by 2.7 million tons, which was partially offset by increased beginning stocks. Russia’s wheat production was decreased by 2.5 million tons and the EU-27’s production was reduced by 2.4 million tons. Wheat exports were increased by 2.0 million tons for Canada and 1.4 million tons for the U.S.
 
The USDA decreased both the average U.S. corn yield, and the ending stocks to use ratio due to increased usage. The U.S.’s corn stocks to use ratio is a red flag for the supply and demand of corn. Even though production has significantly increased since 1995, usage has increased at a faster pace, leaving the ratio at a 15-year low. The supply and demand imbalance is continuing to worsen. The U.S. soybean stocks to use ratio could be in the same situation as China is not showing any slow down in their purchases of U.S. grains.
 
Click on the link for the full WASDE report: http://www.usda.gov/oce/commodity/wasde.
 
Read more about agriculture and farmland at http://farmlandforecast.colvin-co.com/.

 

Crop Progress: One-Third of Corn Crop Mature

Sep 08, 2010

Yesterday, the USDA released its weekly crop progress report. The corn crop condition worsened by one percent over the past week, but continues to remain close to the historical average. The soybean crop condition remained unchanged compared to last week’s report. The USDA estimated 69% of the corn crop is in good or excellent condition, while 11% is in poor or very poor condition. During this week in 2009, 69% of the crop was in good or excellent condition and 9% was in poor or very poor condition.

This week, 98% of the corn crop has entered the dough stage of growth, while 94% was last week, and the 5-year historical average is 93%. This week the USDA estimated that 86% of the corn crop was dented while 73% was last year in the first week of September, and the 5-year historical average is 71%. Out of the entire corn crop, 33% was considered mature by the USDA this week, 17% was mature last week, and the 5-year historical average is 19% in the first week in September.

Of the 18 primary soybean producing states, 12% of the soybean crop is in poor or very poor condition while 64% is in good or excellent condition, which is unchanged from last week. The USDA estimated that 19% of soybeans were dropping leaves by this week. Last week it was estimated that 8% were dropping leaves while the 5-year historical average is 15% in the first week in September.

The spring wheat harvest is still a little behind historical averages with 76% of the harvest complete so far, while 69% had been harvested by last week. The 5-year historical average is that 85% of the spring wheat crop has been harvested by this week in September.

Corn prices increased 7.2% over the past week ending at $4.51 per bushel, soybeans were up 2.1% to $10.43 per bushel, and wheat ended the week up 6.0%, closing at $7.02 per bushel. Year-over-year corn prices are up 49.1%, soybeans are up 7.7%, and wheat is up 62.8%. U.S. grain prices have recently been increasing due to the crop damaging weather across Russia, Europe and Canada.

Read more about agriculture and farmland at farmlandforecast.colvin-co.com.

Colvin & Co. Appoints Marc Faber, William Wilson, and Tom Olson to Its Board

Sep 07, 2010

ANOKA, MINNESOTA, September 07, 2010 – Colvin & Co. LLP today announced the appointment of Dr. Marc Faber, Dr. William Wilson, and Mr. Tom Olson to its Advisory Board.
 

"Dr. Faber, Dr. Wilson, and Mr. Olson are some of most respected experts in their fields. We are very excited to have them join Colvin & Co.’s Advisory Board,” said Greyson Colvin, Managing Partner. “Their expertise and advice will be very valuable to Colvin & Co.’s investment strategy and its new farmland fund, Colvin Farmland LP.”
 

Colvin & Co.’s Advisory Board has expertise in a variety of disciplines, including agriculture, economics, education, investing, and the real estate industry. A full biography for each director can be viewed on Colvin & Co.'s website (www.colvin-co.com/). 
 

Dr. Faber has over 35 years of experience in the finance industry and is the Managing Director of Marc Faber Ltd., an investment advisory and fund management firm based in Hong Kong. Dr. Faber is the publisher of The Gloom, Boom & Doom Report and is the author of several books including Tomorrow's Gold - Asia's Age of Discovery. A renowned commentator on global market trends and developments, he is also a regular contributor to several leading financial publications around the world, including Barron's Roundtable. Dr. Faber received his PhD in Economics magna cum laude from the University of Zurich.


Dr. Wilson received his PhD in Agricultural Economics from the University of Manitoba in 1980. Since then he has been a Professor at North Dakota State University in Agribusiness and Applied Economics. Recently, he was named as a University Distinguished Professor at NDSU, an honorary position. Dr. Wilson’s focus is risk and strategy as applied to agriculture and agribusiness with a particular focus on marketing, procurement, transportation and logistics, international marketing and competition.


Mr. Olson is the Chief Investment Officer for the University of Wisconsin Foundation, the official fund-raising and gift-receiving organization for the University of Wisconsin-Madison. Prior to joining the University of Wisconsin Foundation in 2005, Mr. Olson spent eight years with the State of Wisconsin Investment Board as the Private Equity Portfolio Manager. Mr. Olson received his B.A in Agriculture Economics-Business from the University of Wisconsin-Madison and is a CFA Charterholder.


About Colvin & Co.


Colvin & Co. is an agriculture-focused investment manager that seeks to combine its expertise in the capital markets and agricultural sector to provide investors unique investment opportunities. The management team’s family has owned and managed farmland for over 120 years. Colvin & Co. manages two funds, Colvin Farmland LP and Sather Agriculture LP, and is the publisher of Farmland Forecast (
farmlandforecast.colvin-co.com/), an educational blog on the investment opportunities in agriculture and farmland.

Contact
T. Marc Schober

763.427.7991 VOICE

763.421.9511 FAX

tmschober@colvin-co.com

US Farm Income Up 24% in 2010

Sep 02, 2010

Agriculture continues to outperform in 2010 and be one of the bright spots in a very uncertain economy. The USDA now estimates that net farm income will rise 24% in 2010 due to higher returns for soybeans, cotton, and livestock producers. The department also raised its estimates of U.S. farm exports due to strong demand for U.S. grain due to the drought in Russia and Eastern Europe and China’s unexpected transition to a net corn importer.

“Today's reports are encouraging news. They show that while American agriculture has struggled through difficult economic times…the hard work and resilience of America's farmers and ranchers have helped put American agriculture on the road to recovery,” said Agriculture Secretary Tom Vilsack.

We see today’s report as a first step in the global agriculture boom. Rising farm income and cash receipts translates into more equipment purchases, higher fertilizer use, and the desire to increase production numbers.

Net Farm Income

The USDA estimates that net U.S. farm income will be $771 billion in 2010, up 24% from 2009 and $12.3 billion above the 10 year average. Cash receipts are expected to increase 6.5%, due mainly to higher livestock receipts.

Farmland Forecast   2010 Net Income Greyson Colvin

Livestock producers, led by dairy and pork, are leading the rebound this year. Cash receipts on milk are expected to be up 26% compared to 2009 and income from pork is expected to rise by 25% due to reduced production and rising demand domestically and overseas. Cash receipts for cattle and calves are expected to increase by roughly 11%.

Corn sales are expected to be below their 2008 high due to a lower average annual price and high production estimates in 2010. Currently, the 2010 corn crop is forecast to set new records for yields and production. Soybean sales are expected to rise 9% from 2009 to a record annual value due to an increase in exports. Demand for soybeans may overtake production in 2010 if there is a strong recovery in biodiesel production. Wheat sales are estimated to decline in 2010 due to a $0.50 lower annual average price partially offset by a 36% increase in exports.

U.S. Exports

The USDA estimates U.S. agricultural exports to rise 5.1% to $113 billion in 2010, driven by the drought in Russia. Reduced competition from Russia will allow U.S. wheat farmers to exports $8.1 billion of wheat, a 35% increase from the previous USDA forecast.

The transition of China from a net exporter of corn to a net importer of corn has also been beneficial for U.S. agricultural exports. China has historically been self-sufficient in corn production, but demand is starting to outpace supply as the nation continues to consume more protein. Chinese imports of corn will grow from 1.7 million tons in 2010 to 5.8 million tons in 2011, and to 15 million tons in 2014-15 according to the U.S. Grains Council.

Farmland Forecast   Greyson Colvin Marc Schober 2010 Exports grains

“Another factor driving this recovery is an increase in income from exports. Today, USDA is excited to announce that we are raising our forecast for agricultural exports for Fiscal Year 2010 to $107.5 billion – the second highest year on record. This a $3 billion increase from the May forecast, and an $11 billion increase over last year. And Agriculture is one of the only major sectors of the American economy with a trade surplus – expected to be $30.5 billion this year,” noted Vilsack.

Outlook

We expect agriculture to continue to perform well over the next decade and see 2010 as the beginning of a larger agriculture boom. Demand is continuing to outpace production and ending stocks are already at low levels. As ending stocks continue to trend towards zero, the marketplace will begin to recognize the value of agriculture.

Jim Rogers said, “It’s going to be the 29 year old farmers who have the Lamborghinis.” It is either time to get a tractor or set up a Lamborghini dealership in Iowa.

Read more about agriculture and farmland at http://farmlandforecast.colvin-co.com.

Agriculture Rewarding Its Investors

Sep 01, 2010

Fears over a double dip recession have created an unstable equity market while farmland has continued to yield steady returns. Farmland values have increased across the Midwest United States due to increasing grain prices and demand. U.S. crops have continued to remain in above average condition, based on historical USDA averages. This is not the case in other areas of the world. Droughts in Europe, Russia, and into China have caused a significant tightening of grain supplies, translating into higher grain prices this summer.

La Niña has recently caused concern in parts of South America, calling for a dryer growing season ahead. Unseasonably cool temperatures in parts of Alberta have early frost concerns rising in Canada as well.

Commodity Prices

Grains have fared well during August. September corn prices increased by 7.9%, closing at $4.24 per bushel this month. Wheat prices decreased by 1.0%, closing at $6.52 per bushel while soybean prices also decreased, by 4.5%, closing at $10.08 per bushel. The rally in corn was due to the mediocre weather that the Corn Belt has received lately, and lower yield estimates arising from a number sources. Wheat prices are still being primarily affected by the droughts in Eastern Europe and Russia. Soybean production looks to be at record levels here in the U.S., which has caused the decrease in price.

Local elevator basis prices have nearly doubled in some areas in the Midwest, limiting farmer income during this current rally in grain prices.

Farmland

Farm real estate, cropland, and cash rent values all increased over the past year. The USDA recently released its Land Values and Cash Rents 2010 Summary which tracks land and cash rent values in the U.S. Across the country, farm real estate, which includes all categories of farmland, appreciated 1.4% during 2009. The average price of U.S. farm real estate is now at $2,140 per acre.

The total return (cash rents plus land appreciation) on U.S. cropland during 2009 was 4.9% which is significantly higher than last year’s 0.5% total return, but still below the 10-year average of 10.4%. We believe that the return on cropland will continue to grow as the demand for farmland is increasing at an alarming rate due to rising ethanol and food demands.

Farmland values increased 6% in the Midwest during the past 12 months. North central Iowa and portions of east central Illinois reported that “good” farmland values increased by 14% and 8% respectively, according to the Federal Reserve Bank of Chicago. Farmland values have been steadily increasing due to elevated grain prices and increased buyer demand.

WASDE

The USDA updated the U.S. and World balance sheet estimates for major agricultural commodities in the World Agricultural Supply and Demand Estimates (WASDE) report in mid-July. Extremely hot and dry weather across Europe and the former Soviet Union have lead grain prices on a rally and global supply to decrease. Estimates of U.S. corn yields were increased to a record 165.0 bushels per acre, but domestic supplies were lowered to a four-year low of 1.3 billion bushels.

The USDA did not change their July estimate of soybean ending stocks of 360 million bushels due to an offset lead by increased exports and increased production. U.S. soybean production was estimated 88 million bushels higher than last month’s estimate, up to 3.4 billion bushels due to an increase in yields to last year’s record high, 44 bushels per acre. Exports were increased by 65 million bushels to 1.435 billion on an increase in buying from China, and lower ending stocks in South America making U.S. soybeans a more attractive buy.

Demand

The rising demand for grains, specifically corn and soybeans, by the Chinese has continued to increase. The primary problem facing China’s ability to feed itself is its land imbalance. China has roughly 20% of the world’s population although only 7% of the world’s arable land. The supply of arable farmland in China is decreasing rapidly as well. China has lost 20% of its arable land due to erosion, desertification, and development, and is expected to lose 10 to 15 million more hectares by 2020.

To solve this imbalance, China committed $5 billion for agricultural development in Africa in 2008. China is sending expatriate farmers to Africa to cultivate the land and export the grain directly back home to ensure a consistent supply of grains. According to the Chinese Ministry of Commerce, over one million Chinese are farming in Africa dispersed throughout 18 countries.

Outlook

Colvin & Co. LLC cordially invites you to attend the Farmland Outlook for 2010 and Beyond conference on September 20, 2010 at The Allerton Hotel in Chicago, Illinois. The conference is an exclusive event, open to the public at no cost.

The conference will address the world’s growing demand for grains and the developing agriculture boom over the next decade. Rapid population and economic growth in emerging markets has driven the country’s insatiable demand for grains. Economists have long shown that as GDP rises and a middle class develops, consumption of protein also rises. The transfer to protein will have a significant impact on the demand for grain as roughly one pound of meat requires seven pounds of grain.

Read more about the conference at: http://farmlandforecast.colvin-co.com/2010/08/18/invitation-farmland-outlook-for-2010-and-beyond.aspx.

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