Farmland Forecast

WASDE: More corn and less wheat in the bins

Marc Schober — Mon, 12 Apr 2010 09:12:13 GMT

The USDA updated the U.S. and World 2009/10 balance sheet estimates for major agricultural commodities in the World Agricultural Supply and Demand Estimates (WASDE) report on Friday. After the March WASDE and USDA Planting Report, grain prices have been very volatile. Traders were hoping for good news out of the April WASDE to help solidify grain prices. U.S. corn ending stocks increased slightly, within preliminary forecasts, and U.S. wheat ending stocks decreased 5% to mark below 1 billion bushels once again, according to the WASDE.

Grain production could decrease by 37% in China

Marc Schober — Fri, 04 Dec 2009 16:41:23 GMT

Climate change could decrease China's grain production by 37% according to a recent study done by the International Food Policy Research Institute (IFPRI). For every degree Celsius that the temperature increases, grain production will decrease by 10%. If no changes are made, and climate change continues, by 2050 in South Asia, wheat yields will decrease by 50%, rice will decrease by 17%, and corn will decrease by 6%.

Global Farmland Disappearing

Marc Schober — Tue, 13 Oct 2009 15:46:57 GMT

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.

Common methods of conservation tillage

Marc Schober — Tue, 19 Jan 2010 11:27:12 GMT

After a fall harvest and before the spring planting season, soil is typically cultivated so it can become more fertile and welcoming for plant growth. All farmers practice at least one type of tillage method. Tillage was first done hundreds of years ago through manual or animal labor. Today, farmers use tractors and can choose from a number of different tillage machinery. Recently, conservation tillage has become more popular, including no-till and strip till practices.

The Bulls and Bears of the Grain Market

Marc Schober — Wed, 24 Mar 2010 09:43:06 GMT

Major grain prices have been fluctuating recently on the Chicago Board of Trade. Prices have been trying to recover since the WASDE Report was released on January 12, 2010 by the USDA. Some analysts feel that food commodities are bound for another increase, while others believe that food commodities are going to remain stable or decrease over time.

Between the rising global population and the increase in renewable fuels, food commodity prices, particularly grains, should increase over time. On the other hand, a dollar that is rallying and record ending stocks could keep grain prices in check.

Area Economic Index at its highest since April 2008

Marc Schober — Mon, 22 Mar 2010 11:29:42 GMT

The overall Rural Mainstreet Index (RMI) continued its climb to a nearly two year high this month, according to Creighton University’s March survey of bank CEOs in an 11-state region. The RMI rose to 47.4, which is still below the growth neutral 50.0. The farm equipment index fell while the farmland price index continued its rally. The confidence index, which estimates the economy six months out, continued to remain growth positive for the sixth consecutive month at 54.3. The loan volume index increased above growth neutral to 55.2 for the first time since last June.

USDA: U.S. ecosystems are being impacted by climate change

Marc Schober — Tue, 22 Dec 2009 13:55:50 GMT

The U.S. Department of Agriculture (USDA) released a report on the effects of climate change on U.S. ecosystems during the recent United Nations Climate Conference. The report was done in collaboration with the University Corporation for Atmospheric Research and the U.S. Global Change Research Program. The report reveals that a considerable amount of change has already occurred in U.S. ecosystems due to climate change, and the affects will grow. Climate change is affecting U.S. agriculture, land resources, water resources, and biodiversity according to the report.

What to Expect in 2010

Marc Schober — Thu, 11 Feb 2010 09:18:17 GMT

2010 should be another exciting year for agriculture and farmland. The economy is expected to continue to stabilize in 2010, but headwinds from high unemployment and rising deficits in Europe will make it a bumpy ride. Farmers are happy that input costs have came down, but the large amount of crops in the ground due to the difficult harvest of 2009 will make spring planting difficult.

Below is a list of things we are keeping an eye on in 2010:

Preserving Farmland

Marc Schober — Tue, 01 Dec 2009 09:26:24 GMT

Preserving farmland in Wisconsin is becoming a major issue because it is vanishing at one of the highest rates in the nation. Wisconsin Governor Jim Doyle is developing a plan to preserve Wisconsin farmland according to the Wisconsin State Journal.

Wet harvest can lead to wet planting - The risk of farmland flooding

Marc Schober — Mon, 08 Mar 2010 09:38:35 GMT

The planting season is right around the corner and that means that flood season is coming even quicker. After an extremely wet harvest across the nation, fields that have not had their fall tillage completed may be at a disadvantage when spring comes. Fields that still have crops standing in them will even further delay the planting season. Two to four times the normal precipitation level was seen in the Midwest this past fall, according to the National Weather Service.

As snow melts and the ground is exposed to the sun once again, the ground needs to heat up and dry out as quickly as possible so farmers can access the fields to plant their crop. Flooding becomes an issue in spring when fields cannot drain their moisture quick enough.

Banker survey shows farmland values are steady

Marc Schober — Wed, 18 Nov 2009 10:47:44 GMT

Farmland values have stabilized across the Federal Reserve Bank of Kansas City’s Tenth District. Irrigated land, as well as pasture land, decreased in value approximately 1%, while nonirrigated land slightly increased in value during the third quarter of 2009.

Soil Erosion: The Silent Killer

Marc Schober — Tue, 08 Dec 2009 09:16:48 GMT

"Soil erosion is second only to population growth as the biggest environmental problem the world faces," said Pimentel.

Over half of America's best cropland is experiencing an erosion rate 27 times the natural rate or 11,000 pounds per acre according to the Department of Agriculture. The natural, geological erosion rate is about 400 pounds of soil per acre per year.

USDA: Lower Corn Stocks Due to Higher Ethanol Use

Marc Schober — Fri, 11 Jun 2010 08:13:00 GMT

The USDA updated the U.S. and World 2009/10 balance sheet estimates for major agricultural commodities in the World Agricultural Supply and Demand Estimates (WASDE) report on Thursday. The USDA lowered ending stocks for corn in both 2009 and 2010 due to a very surprising increase in ethanol use. 2010 ending corn stocks are expected to be the smallest since 2007.

We see June’s WASDE as bullish for corn as ending stocks were lower than

Weekly USDA Crop Progress: Corn and soybeans well ahead of schedule

Marc Schober — Tue, 04 May 2010 09:33:20 GMT
Yesterday, the USDA released its weekly planting progress report. Progress in corn planting is considerably above last year’s pace, with 68% of the total corn crop already in the ground for the 18 primary producing states. This compares to a 5 year historical average of 40% in similar time periods, and 2009’s estimate of 32%.

The USDA estimated corn emergence of 19% for the 2010 crop, which is well above both the 5 year historical average of 9% and the 2009 estimate of only 4%.

Leasing farmland becoming popular in China

Marc Schober — Fri, 23 Oct 2009 11:08:40 GMT
Leasing land was illegal in China prior to 1984, but a change in government policies has made it possible to lease land rights on farmland. The change in land rights policies from the Chinese government has boosted farm income and productivity over the past 25 years.

Weekly USDA Crop Progress: Corn and sugar beets well above historical marks

Marc Schober — Tue, 20 Apr 2010 09:14:43 GMT

Yesterday, the USDA released its weekly planting progress report. Progress in corn planting is well above last year’s pace, with 16% of the crop being planted last week, 19% of the corn crop is already in the ground for the 18 primary producing states. This compares to a 5 year historical average of 9% in similar time periods, and 2009’s estimate of 5%.

Weekly USDA Crop Progress: 55% of corn emerged, but one-third in less than good condition

Marc Schober — Tue, 18 May 2010 11:09:43 GMT

Yesterday, the USDA released its weekly planting progress report. Progress in corn planting is almost complete across the 18 primary producing states. During the last week, 6% of the entire corn crop was planted; bringing the total planted crop at 87%. This compares to a 5 year historical average of 78% in similar time periods, and 2009’s estimate of 61%.

Record ending stocks of wheat; why the steady prices?

Marc Schober — Mon, 29 Mar 2010 09:16:47 GMT

The March WASDE Report from the USDA estimated U.S. wheat ending stocks to surpass 1 billion bushels for the first time in 22 years. This causes a concern for some wheat producers since basic economics tell us that when supplies extend higher than demand, prices can decrease. So far, wheat prices have held fairly steady since the March 12th release of the WASDE Report, but will these prices hold, and why is there such a surplus?

The fight for “food security”

Marc Schober — Thu, 22 Oct 2009 11:57:48 GMT

Farmland is becoming a smart investment, but some may ask why. One reason is growing demand for grains, especially from developing countries. China has begun to reconsider their future “food security” by acquiring foreign farmland.

Rural Mainstreet Index at 14 month high

Marc Schober — Tue, 24 Nov 2009 11:56:34 GMT

The overall Rural Mainstreet Index (RMI) climbed to a 14-month high according to Creighton University’s November survey of bank CEOs in an 11-state region. The RMI rose to 38.4, which is the highest since September 2008, but still significantly below growth neutral 50. Farm equipment sales, hiring, and retail sales all increased to 12-month highs during November.

Higher yields on Brazil’s horizon

Marc Schober — Wed, 11 Nov 2009 09:31:08 GMT
Brazil has its eyes set on much higher grain yields. Through genetically engineered seeds, double cropping, market changes, and exchange rates Brazil could emerge as one of the top exporters of corn and other grains according to an article from The Progressive Farmer.

1 billion people are malnourished across the globe

Marc Schober — Mon, 19 Oct 2009 09:54:35 GMT
The number of people who are malnourished rose in 2008 and 2009, after a long decline. The number of malnourished people has recently passed 1 billion, according to the UN.

WASDE: Corn yields decreased as expected

Marc Schober — Thu, 11 Mar 2010 11:08:08 GMT
The USDA updated the U.S. and World 2008/09 and 2009/10 balance sheet estimates for major agricultural commodities in the World Agricultural Supply and Demand Estimates (WASDE) report on Wednesday. Typically the March report receives little attention, but all eyes were focused on this month's report due to the resurvey of last fall's harvest. The resurvey included Illinois, Michigan, Minnesota, and Wisconsin. North and South Dakota will be resurveyed at a future date.

Rural Mainstreet Index highest since July 2008

Marc Schober — Mon, 28 Dec 2009 11:41:48 GMT

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 still considerably below growth neutral 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.

Corn refuge acres decrease from 20 to 5 percent

Marc Schober — Thu, 10 Dec 2009 11:53:36 GMT

The agriculture world has drastically changed over the past 15 years through genetically modified seeds, and now corn is going to change again in 2010. Since 1996, corn seeds containing the bacteria protein, Bacillus thuringiensis (Bt) have become farmer's 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 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 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.

Wind blowing on Wall Street

Marc Schober — Tue, 27 Oct 2009 10:46:27 GMT
Wall Street is beginning to invest in wind energy again, after a six month absence according to the Wall Street Journal. Morgan Stanley and Citigroup have each invested $100 million to finance separate wind farms in August in order to take advantage of a new federal program that pays substantial cash grants to encourage wind development. The cash rebates are part of February's stimulus bill.
This could be the a new beginning of wind development and other alternative energies, such as solar and geothermal.

How can the world feed 3 billion more people?

Marc Schober — Mon, 16 Nov 2009 12:10:38 GMT
By 2050, the world will have to feed 3 billion more humans. How can we do such a task when currently one out of eight, or people 850 million, are malnourished?

Rural banker’s confidence increases in October

Marc Schober — Tue, 20 Oct 2009 12:35:24 GMT

Rural community bankers are confident that their economies will soon turn around, according to increases in the Rural Mainstreet Index. The confidence index, which gives an outlook on the rural mainstreet economy six months out, rose above neutral growth to 58.7 this month. An index of 50 indicates neutral growth. Even though indexes are increasing, economist and founder of the RMI, Ernie Gross noted that the rural mainstreet economy is still weak.

Crop Insurance Basics

Marc Schober — Tue, 16 Feb 2010 10:08:41 GMT

Anything can be insured today; let it be a cat, car, or crop. Crop insurance has been in existence since the early 1930s. Federal crop insurance was established to combat the effects of the Great Depression and the Dust Bowl. If a farmer were to pick out crop insurance today, they would have many different options to choose from.

Crop insurance provides a safety net for farmers by reimbursing them due to revenue or yield diminishing problems for their crops.

Weekly USDA Crop Progress: 50% of corn already planted

Marc Schober — Tue, 27 Apr 2010 11:06:40 GMT

Yesterday, the USDA released its weekly planting progress report. Progress in corn planting is still significantly above last year’s pace, with 31% of the crop being planted last week, 50% of the total corn crop is already in the ground for the 18 primary producing states. This compares to a 5 year historical average of 22% in similar time periods, and 2009’s estimate of 20%.

This week, the USDA included estimates of corn emergence. 7% of the 2010 crop has already emerged in the primary producing states, which is above both the 5 year historical average of 5% and the 2009 estimated of 2%.

Farmland values increase during third quarter of 2009

Marc Schober — Mon, 23 Nov 2009 13:31:01 GMT

Farmland values increased 2% during the third quarter of 2009 across the Chicago Federal Reserve's Seventh District, according to 225 surveyed agricultural bankers. The Seventh District includes Illinois, Indiana, Iowa, Michigan, and Wisconsin.

Rural Mainstreet Report: Farmland Price Index at 18-month high

Marc Schober — Wed, 21 Apr 2010 09:21:06 GMT
The overall Rural Mainstreet Index (RMI) decreased to 44.2 from its nearly two-year high of 47.4 last month, according to Creighton University’s April survey of bank CEOs in a 10-state region. The RMI currently sits below the growth neutral 50.0. The farm equipment sales index rose to an 18-month high of 57.2, and the farmland price index continued its rally to 59.5. The confidence index, which provides an economic outlook six months from now, decreased to 45.6, which is the first time it has fallen below 50.0 in the last six months, and the lowest it has been since August 2009. The home sales index increased to 52.5, which is above growth neutral for the first time since 2007.

Trees cover more farmland than you think

Marc Schober — Thu, 29 Oct 2009 09:58:36 GMT
A recent study from the World Agroforestry Centre (WAC) revealed that approximately 2.5 billion acres, or 46% of world farmland, has tree cover of more than 10%. Over 27% of world farmland has over 20% tree cover. This comes as great news considering earlier estimates were as low as 120,000 acres of farmland having significant tree cover.

A code of conduct for land grabs

Marc Schober — Tue, 03 Nov 2009 10:36:48 GMT
An international code of conduct for land deals should be completed by the end of the year, according to the head of the United Nations’ International Fund for Agricultural Development (IFAD). In 2008, food prices increased and many countries tried securing their food supply by buying foreign farmland, or entering into long-term leases on foreign farmland. These sales and leases have often been referred to as “land grabs” because both the buyer and seller do not always benefit.

Rural Mainstreet Report: Area Economic Index at highest level since January 2008

Marc Schober — Mon, 24 May 2010 09:40:16 GMT
The overall Rural Mainstreet Index (RMI) expanded to 54.3 this month, according to Creighton University’s May survey of bank CEOs in a 10-state region. The RMI is at the highest level since January 2008. The farm equipment sales index continued to be above growth neutral 50.0 for the second consecutive month at 50.9. The farmland price index decreased to 52.7, but remained above 50.0 for the fourth consecutive month. The confidence index, which provides an economic outlook six months from now, increased to 63.0 which is the highest it has been in nearly three years. All but one of the ten indexes was above 50.0. Only the retail sales index, at 49.2, was below 50.0.

Major oil company enters ethanol industry

Marc Schober — Mon, 22 Feb 2010 11:37:08 GMT
Royal Dutch Shell plc has plans to strike a deal with Brazil’s Cosan for a $21 billion a year ethanol joint venture. Shell will become the first major oil company to access ethanol on this scale. The deal will be Cosans largest entry into fuel distribution as well. Cosan purchased Exxon Mobil’s Esso chain of service stations for $1 billion in 2008. Shell and Cosan’s 50/50 joint venture features 4,500 filling stations nationwide.

Rising U.S. Corn Exports May Increase Prices

Marc Schober — Mon, 10 May 2010 10:11:09 GMT
Corn is the staple crop of the U.S. Ask any Midwestern farmer what their most profitable crop is, and most likely their answer will be corn. Grain prices affect the amount of acres of a certain crop that are planted by farmers, as some recent developments could change corn prices and the amount of acres planted in the near future. One of the developments is increasing U.S. exports of corn, which may have a significant effect on future corn prices. When corn prices increase, many other asset values that are dependent of corn prices, such as farmland, ethanol or other grains, will be affected too.

Irrigation Uses in Farming

Marc Schober — Tue, 12 Jan 2010 12:48:52 GMT

In order for plants to survive, they need sun and water. Unfortunately sun will deplete readily available water for plants in arid or semi-arid climates. Water provides nutrients to a plant so it can grow and carry out its functions. If a plant does not have enough water, it will die. Conversely, too much water will wash nutrients out of the soil and away from a plant.

To assist crops in dry areas and during periods of inadequate rainfall, irrigation is used as an artificial application of water to the soil. Irrigation also protects plants against frost, suppresses weed growing in grain fields, and helps in prevent soil consolidation. In contrast, agriculture that relies only on direct rainfall is referred to as rain-fed farming.

Why the sudden drop in grain prices?

Marc Schober — Wed, 27 Jan 2010 14:58:11 GMT

Over 50% of all counties in the Midwest are considered disaster areas according to the USDA, yet 2009 resulted in record production and yields. Something is not adding up. If you drive through the Midwest, there are unharvested corn fields everywhere. Either USDA survey data is over stated, or farmers are growing extremely exceptional crops.

To help answer concerns and questions throughout the agriculture industry, the USDA has announced that they will re-survey fields and take into better consideration unharvested corn fields across much of the U.S. The re-surveyed data will not be available until March at the soonest.

Investors interested in farmland once again

Marc Schober — Mon, 02 Nov 2009 09:38:02 GMT
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.

Why invest in farmland?

Marc Schober — Mon, 12 Oct 2009 16:11:11 GMT
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.

Farmland Price Index highest since October 2008

Marc Schober — Mon, 25 Jan 2010 16:27:24 GMT

The overall Rural Mainstreet Index (RMI) continued its climb to an 18-month high according to Creighton University’s November survey of bank CEOs in an 11-state region. The RMI rose to 41.0, which is just 0.1 higher than last month, and still considerably below growth neutral 50.0. The farm equipment index and the farmland price index rose to their highest marks since October 2008 at 47.2 and 47.4 respectively. The confidence index, which estimates the economy six months out, continued its rally to 59.7, while the loan volume index proved that credit is tightening on Rural Mainstreet by decreasing to a record low 33.4.

Management Adds Value

Marc Schober — Thu, 19 Nov 2009 09:23:47 GMT

As a land owner, it is always a good idea to be aware of conservation practices when considering the leasing of farmland. According to the US Department of Agriculture's Natural Resources Conservations Service, some common conservation of farmland practices include:

Weekly USDA Crop Progress: 39% of corn crop emerged

Marc Schober — Tue, 11 May 2010 12:23:00 GMT

Yesterday, the USDA released its weekly planting progress report. Progress in corn planting is significantly above last year’s pace, with 81% of the total corn crop already in the ground for the 18 primary producing states. This compares to a 5 year historical average of 62% in similar time periods, and 2009’s estimate of 46%.

U.S. Farmland Best Investment

Marc Schober — Tue, 05 Jan 2010 09:42:30 GMT
For investors interested in farmland, there are a lot of options around the globe. Investors have been recently acquiring farmland in the U.S., Canada, Brazil, Africa, and Eastern Europe. Agriculture, as a whole, is developing as a strong long-term investment, but there has been an on-going debate: What is the best farmland investment in the world?

Monsanto: Growing Need for Food

Marc Schober — Mon, 30 Nov 2009 09:18:31 GMT
Monsanto recently released a campaign highlighting the importance of sustainable farming and food production. The campaign highlighted the fact that agricultural output will likely need to double by 2050 to meet the growing global demand. The campaign also discussed the growing importance of non-irrigated agriculture, (currently producing 60% of global food supplies), and how this type of farming will become more and more important in the future as water resources continue to be regulated. Currently, agriculture irrigation uses two-thirds of global freshwater withdrawals.

Don't take dirt for granted

Marc Schober — Mon, 09 Nov 2009 09:51:02 GMT
Top soil depletion could rival global warming as the next natural global dilemma according to the Seattle Post-Intelligencer's article "The lowdown on top soil: It's disappearing."
Currently in the US, there is about 3 feet of top soil that is made up of many micro organisms and fungus that help support growth. According to David Montgomery, a geologist at the University of Washington, the problem is that this priceless dirt is disappearing at a rate of about 1% per year. The culprit is water and wind erosion. The National Academy of Sciences claims that top soil is being eroded in the US 10 times faster than it can be replaced.

Corn Suitability Ratings

Marc Schober — Mon, 08 Feb 2010 10:10:05 GMT
When a land buyer is shopping for a piece of farmland, they must compare many different aspects of the land. A land buyer should do plenty of research prior to making a purchase including studying farmer demands, rent prices, comparable land sales, yields, wetness and many other factors. Often the easiest comparison to draw between parcels will be a soil rating. In the state of Iowa, they use a Corn Suitability Rating (CSR). A parcel’s CSR acts as a standard for comparing different pieces of land. CSR assesses only the inherent productivity. Factors such as buildings, location, water supplies, crop and noncrop acreages, and other management features must be subsequently evaluated, according to Iowa State University.

Farmland Values Rise 4% in Seventh District

Marc Schober — Wed, 26 May 2010 11:18:00 GMT
Farmland values rose 4% year-over-year according the Federal Reserve Bank of Chicago’s May AgLetter, due to strong demand from farmers and greater availability of fund for lending. The Seventh Federal Reserve District reported quarter-over-quarter farmland values increased 2%. However, the amount of farmland for sale, the number of properties sold, and the amount of acreage sold was less than first quarter of 2010.

Over the past

WASDE: Corn 2009/10 ending stocks higher on lower exports

Marc Schober — Fri, 11 Dec 2009 11:19:11 GMT
The USDA updated the US and World 2008/09 and 2009/10 balance sheet estimates for major agricultural commodities in the World Agricultural Supply and Demand Estimates (WASDE) report on Thursday. Forecasted US corn ending stocks for 2009/10 increased on a reduction of expected corn exports of 50 million bushels (2%). The USDA decreased the domestic consumption of US wheat by 15 million bushels to 1.208 billion bushels, which increased the forecast of ending US wheat stocks for 2009/10 by 15 million bushels as well. The forecast for US soybean exports increased by 15 million bushels (1%), decreasing the 2009/10 ending stocks of soybeans by 15 million bushels.

Weekly USDA Crop Progress: Soybean planting progress falls behind historical average

Marc Schober — Tue, 25 May 2010 09:29:00 GMT

Yesterday, the USDA released its weekly planting progress report. Progress in corn planting is almost complete across the 18 primary producing states. During the last week, 6% of the entire corn crop was planted; bringing the total planted crop at 93%. This compares to a 5 year historical average of 89% in similar time periods, and 2009’s estimate of 80%.

Kazakhstan to provide 3.5 million hectares of farmland

Marc Schober — Mon, 21 Dec 2009 12:02:54 GMT
Many Kazakhs are protesting after the president of Kazakhstan, Nursultan Nazarbaev, reportedly told the Foreign Investors Council that China had asked about leasing 1 million hectares of Kazakh farmland, according to Spero News. The Chinese deny any talks of leasing the farmland. Vice Minister of Agriculture of Kazakhstan, Armand Evniev claimed, "It is not a lease, it is a question of joint manufacture. In this case, it is soya and later it will be corn and rape," according to the Gazeta newspaper. The joint manufacture is set to start in early 2010.

Farmland yields more than just crops; 12.5% return over past 20 years

Marc Schober — Thu, 15 Oct 2009 10:27:16 GMT

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.

Preview: The world’s greatest farmland

Marc Schober — Wed, 23 Dec 2009 11:32:02 GMT

Where is the world’s greatest farmland? If an investor is going to purchase land in hopes of getting a consistent return through appreciation, and rent, the investor is probably going to search for the best possible farmland available. When investing in farmland, a great deal of due diligence must be done. Currently, land owners and operators argue over where the greatest farmland in the world is located. Some claim it is in South America, others think it is in Eastern Europe, while some even think it is in the United States.

Yuan Revaluation Benefits Corn, Soybeans

Marc Schober — Wed, 23 Jun 2010 08:19:03 GMT
In a surprise announcement on June 19, China’s central bank announced it would remove the two-year-old peg to the U.S. dollar and to allow for a more flexible yuan, although it is not a free float and monetary authorities will keep the yuan in a tight trading band. The Chinese central bank also noted there will not be a dramatic revaluation, but rather a gradual adjustment.

Rural Economy Growing, Lending Contracting

Marc Schober — Mon, 21 Jun 2010 08:20:02 GMT
The rural economy continues to grow and is at the strongest position in the last two years due to higher farmland prices, rising farm equipment sales, improving retail sales, and continued confidence. The improving conditions are partially offset by limited access to capital and concerns about the new financial reform bill.

The Rural Mainstreet Index (RMI) declined in June to 52.6 from May’s 54.3, but this is the first time in more than two years that index was above growth neutral 50.0 for two consecutive months. Creighton University economist Ernie Goss said, “After 26 consecutive months of below growth neutral readings, the overall index has now moved above growth neutral for two consecutive months.”

Weekly USDA Crop Progress: Corn and Soybeans Well Ahead of Schedule, Despite Worsening Conditions

Marc Schober — Wed, 07 Jul 2010 11:07:48 GMT

Yesterday afternoon, the USDA released its weekly Crop Progress report. The corn and soybean crops continued their worsening condition, but remained maturing well ahead of schedule. The USDA estimated 71% of the corn crop is in good or excellent condition, while 10% is in poor or very poor condition. Last week, 73% was in good or excellent condition while only 8% was in poor or very poor condition. During this week in 2009, 71% of the crop was in good or excellent condition and 8% was in poor or very poor condition. This week, 19% of the corn crop is silking, according to USDA estimates, while only 7% was last week and 8% this week in 2009. The five-year historical average is 12% of the crop silking in the first week of July.

WASDE: Corn Supplies Decrease on Lower Production

Marc Schober — Fri, 09 Jul 2010 11:31:00 GMT
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 today. This morning’s report was slightly bearish as the USDA numbers mostly came in above the average estimates.

Grain prices have been on a rally of late after last week’

Wet Weather in Canada Worst in 40 Years

Marc Schober — Mon, 28 Jun 2010 11:15:58 GMT
Canadian farmers are in a difficult position as record amounts of rain in Western Canada’s crop belt will leave the most unplanted acres in roughly 40 years, according to the Canadian Wheat Board. Heavy rains have flooded farmland in Canada, preventing farmers from planting up to one-fifth of the region’s farmland.

As of June 21, crops in Saskatchewan, the biggest Canadian producer of grain, were only 76% seeded, according to the Ministry of Agriculture. Typically, planting in Canada is completed by now.

Crop Progress: Corn, Beans Deterioriate Due To Rain

Marc Schober — Tue, 22 Jun 2010 09:10:09 GMT
Yesterday afternoon, the USDA released its weekly crop progress report. Progress in soybean planting is almost complete across the 18 primary producing states. During the last week, 2% of the entire soybean crop was planted; bringing the total planted crop at 93%. This compares to a 5 year historical average of 94% in similar time periods, and 2009’s estimate of 91%.

Fundamentals Bullish for Corn as Acreage and Stocks Lower

Marc Schober — Thu, 01 Jul 2010 11:13:58 GMT
A bullish surprise for the corn market Wednesday morning as estimated acreage planted and quarterly stocks were significantly lower than expected. The USDA released two important reports on Wednesday, the Prospective Plantings and Quarterly Stocks of Grains.

Surprising the market, the USDA lowered the estimated corn acres planted to 87.9 million, down from the March estimate of 88.1 million acres. The consensus estimate was that corn planted acres increased to 89.3 million acres. Most weather and pricing models had also estimated an increase in planted acres.

Weekly USDA Crop Progress: Corn and Soybean Conditions Decrease Again

Marc Schober — Tue, 29 Jun 2010 11:38:35 GMT

Yesterday afternoon, the USDA released its weekly crop progress report. Progress in soybean planting is wrapping up across the 18 primary producing states. During the last week, 4% of the entire soybean crop was planted; bringing the total planted crop at 97%, which is equivalent to the 5 year historical average in similar time periods. The 2009 estimate at this week was 95%.

The condition of the corn crop again fell slightly over the past week. The USDA estimated 73% of the corn crop is in good or excellent condition, while 8% is in poor or very poor condition. Last week 75% was in good or excellent condition while only 7% was in poor or very poor condition. During this week in 2009, 72% of the crop was in good or excellent condition and 7% was in poor or very poor condition. This week, 7% of the corn crop is silking, according to USDA estimates, while only 4% was last year by this week and 5% in 2009.

Rural Economy Slows in July

Marc Schober — Mon, 19 Jul 2010 08:16:00 GMT
The rural economy noted a slight slowdown in July as the Rural Mainstreet Index (RMI) dipped below growth neutral 50.0, despite positive growth for the prior two months. Farmland prices and farm equipments sales continue to advance, although rural bankers continue to be concerned about financial reform and unemployment.

Agriculture to Benefit from E15

Marc Schober — Thu, 29 Jul 2010 09:36:00 GMT
The Environmental Protection Agency (EPA) is currently reviewing the proposal to approve the use of 15% ethanol blend gasoline from 10% to help achieve the Renewable Fuel Standards (RFS) goal for year 2022. Proponents of increasing the ethanol blend are concerned about the current constraints on the ethanol market are limiting future innovation and growth.

The inc

Grains Rally in the Heat of July

Marc Schober — Mon, 02 Aug 2010 10:59:00 GMT
Poor weather patterns across much of Europe, Russia, and into China have led to an exceptional rally in the U.S. grain markets during the month of July. There is concern over global shrinking suppliers, which has increased demand for grains from the U.S., the world's largest exporter of grains.

Crop Progress: Corn and Soybeans Maturing Quickly

Marc Schober — Tue, 27 Jul 2010 09:04:00 GMT

Yesterday afternoon, the USDA released its weekly crop progress report. The corn and soybean crop conditions were virtually unchanged from last week’s report, while both crops continue to mature at an accelerated pace. The USDA estimated 72% of the corn crop is in good or excellent condition, while 9% is in poor or very poor condition, which was unchanged from last week. During this week in

Chinese Imports to Change Grain Markets

Marc Schober — Mon, 09 Aug 2010 08:30:00 GMT
China is entering a “new era” of corn buying. The world’s most populous country may import as much as 15 million tons of corn in 2015, according to the U.S. Grains Council. China has historically been self-sufficient in corn production, but demand is starting to outpace supply as the nation continues to consume more protein.

Crop Progress: Corn and Soybeans Continue to Mature Quickly

Marc Schober — Tue, 10 Aug 2010 07:29:00 GMT
Yesterday afternoon, the USDA released its weekly crop progress report. The corn and soybean crop conditions both remained unchanged compared to last week’s report, while both crops are continuing to mature at an above average rate.

U.S. Farmland Values and Returns Increase in 2010

Marc Schober — Wed, 11 Aug 2010 07:57:00 GMT
Farm real estate, cropland, and cash rent values all increased over the past year, while pastureland values did not change. 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.

WASDE: Ending Corn Stocks Lowest in Recent Years

Marc Schober — Thu, 12 Aug 2010 11:20:00 GMT
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.

Crop Progress: Corn Conditions Slip

Marc Schober — Tue, 17 Aug 2010 07:21:00 GMT
This afternoon, the USDA released its weekly crop progress report. The corn crop condition deteriorated since last week, but remains close to the historical average. The soybean crop condition remained unchanged compared to last week’s report. Both corn and soybeans are continuing to mature at an accelerated rate. The USDA estimated 69% of the corn crop is in good or excellent condition, while 11% is in poor or very poor condition.

Rural Bankers Expect Recession in 2011

Marc Schober — Tue, 24 Aug 2010 16:54:00 GMT
More than four in ten rural bankers expect the economy to dip back into a recession in 2011 according to a Creighton University poll. “There is too much uncertainty (coming from Washington). Businesses do not like to take financial risks in uncertain times,” responded Frank Sullentrop of Legacy Bank.

Crop Progress: Corn and Soybean Conditions Unchanged

Marc Schober — Tue, 31 Aug 2010 08:01:00 GMT
This afternoon, the USDA released its weekly crop progress report. The corn crop condition remained unchanged since last week, and remains close to the historical average. The soybean crop condition also remained unchanged compared to last week’s report. The USDA estimated 70% of the corn crop is in good or excellent condition, while 10% is in poor or very poor condition.

Agriculture Rewarding Its Investors

Marc Schober — Wed, 01 Sep 2010 08:10:00 GMT
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.

US Farm Income Up 24% in 2010

Marc Schober — Thu, 02 Sep 2010 08:05:00 GMT
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.

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

Marc Schober — Tue, 07 Sep 2010 08:00:00 GMT
Colvin & Co. LLP today announced the appointment of Dr. Marc Faber, Dr. William Wilson, and Mr. Tom Olson to its Advisory Board.

Crop Progress: One-Third of Corn Crop Mature

Marc Schober — Wed, 08 Sep 2010 09:21:00 GMT
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.

WASDE: Average Corn Yield Estimate Decreased by 1.5%

Marc Schober — Mon, 13 Sep 2010 07:36:00 GMT
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.

Crop Progress: Corn Harvest One Week Ahead of Schedule

Marc Schober — Tue, 14 Sep 2010 07:30:00 GMT
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

Rural Economy Weak; Agriculture Bright Spot

Marc Schober — Fri, 17 Sep 2010 12:50:00 GMT
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.

Corn Conditions Continue to Deteriorate

Marc Schober — Mon, 27 Sep 2010 16:42:00 GMT
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.

Cotton Prices Near 15 year High

Marc Schober — Tue, 28 Sep 2010 13:49:00 GMT
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.

Grain Prices Rally in September as Harvest Begins

Marc Schober — Mon, 04 Oct 2010 06:30:00 GMT
September rewarded nearly all asset classes as investors became more confident about the economy and that the Federal Reserve will support the markets. The Dow gained 7.7%, the strongest September since 1939. Grain markets also continued their rally due to decreased yield estimates and increased demand outlooks. Farmland has also been gaining investor interest as famed investors such as, Michael Burry, Nassim Taleb, and Barton Biggs, have recently recommended arable farmland as an investment.

Corn Stocks Below Critical 1 Billion Mark

Marc Schober — Mon, 11 Oct 2010 08:25:00 GMT
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. Wet weather in June and July, followed by a hot, dry August has led to substantial reduction in U.S. corn yields to 155.9 bushels per acre from 162.5 bushels per acre last year. The USDA also now estimates domestic corn supplies for 2010 to be 902 million bushels, below the critical 1 billion mark.

Frost Won’t Hurt Crops in 2010

Marc Schober — Tue, 12 Oct 2010 08:05:00 GMT
When entering the fall season, farmers often become weary of an early frost that can lead to crop damage and yield loss. This fall, frost concerns are minimal as farmers were able to get into their fields in early spring and crops matured ahead of schedule due to favorable weather during the growing season.

Crop Progress: Healthy Crops and Healthy Prices

Marc Schober — Wed, 13 Oct 2010 07:16:00 GMT
Yesterday afternoon, the USDA released its weekly crop progress report. The corn crop condition improved by two percent over the past week, and now is only 2% shy of last year’s condition at this point in the season. The soybean crop condition did not change compared to last week’s report. The USDA estimated 68% of the corn crop is in good or excellent condition, while 11% is in poor or very poor condition. During this week in 2009, 70% of the crop was in good or excellent condition and 9% was

Agriculture and Banking Driving Rural Economy

Marc Schober — Mon, 25 Oct 2010 07:21:00 GMT
For the fourth straight month, the rural economy contracted due to home foreclosures, high grain prices, high unemployment, and healthcare costs, partially offset by strong farm income and banking. Despite the current weakness in rural economic conditions, bankers are much more optimistic about the economy six months from now.

Crop Progress: Harvest Speeding Along

Marc Schober — Tue, 26 Oct 2010 08:30:00 GMT
Yesterday afternoon, the USDA released its weekly crop progress report. Harvest has been moving along very steadily for corn, soybeans, and most of the other fall crops. Corn harvest is 83% complete while the 5-year historical average is only 49%. Harvest is more than two weeks ahead of the historical averages for corn. By this point in 2009, only 20% of the corn harvest was done. Farmers have been able to harvest quickly due to the dry weather that has been present across much of the Corn Belt

China Running Out of Farmland

Marc Schober — Wed, 27 Oct 2010 07:44:00 GMT
As the Chinese growth engine continues to propel forward, the government is faced with the dilemma: How do we feed our growing and developing population?

Harvest Wraps Up While Grain Prices Rally in October

Marc Schober — Mon, 01 Nov 2010 09:39:00 GMT
A near perfect harvest is now coming to a close across the Midwest. Farmers have been lucky enough to harvest their corn and soybeans at optimal moisture levels without the need to dry them. The continuation of the rally in the grain market, paired with excellent harvest conditions, have led to happy farmers in the U.S. Besides a slight drop in average yields, there’s not much to complain about here in the Corn Belt, as the corn crop is estimated to be the third largest in history.

Corn and Soybean Ending Stocks Drop

Marc Schober — Wed, 10 Nov 2010 07:41:00 GMT
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 Tuesday.

Farmland Values Rise 10% Says Chicago Fed

Marc Schober — Fri, 19 Nov 2010 08:52:00 GMT
Farmland values rose 10% year-over-year due to strong agriculture prices and rising farm income, according to the Federal Reserve Bank of Chicago’s November AgLetter. The Seventh Federal Reserve District also reported quarter-over-quarter farmland values rose 3%. Farmland values are expected to be up in the fourth quarter again due to high demand for agricultural land among farmers.

Rising Farm Income Drives Rural Economy

Marc Schober — Mon, 22 Nov 2010 07:48:00 GMT
For the first time since June, the rural economy expanded due to higher farm income, strong farmland prices, and improving confidence in economic conditions, partially offset by weak employment. In the November survey, bankers reported that farmland price have increased roughly 8% over the last year and farm equipment sales are the highest since May, 2008.

Grains Stabilize, Farmland Values Soar

Marc Schober — Wed, 01 Dec 2010 08:46:00 GMT
Grain prices stabilized during the month of November, primarily due to concerns over China’s attempt to curb inflation and food prices and renewed sovereign debt issues in Europe. Although most grain prices decreased for the month, farmland values have been on a sharp upturn. The Midwest Fed Districts released their farmland value reports this month for the third quarter of 2010 and the overall trend was increasing values driven by increased demand and rising farm income. Concerns have also been

Uneventful December WASDE

Marc Schober — Mon, 13 Dec 2010 10:48:00 GMT
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. The USDA made few changes in the December WASDE, which is to be expected.

Organic Trends Benefit Farmland

Marc Schober — Wed, 15 Dec 2010 07:37:00 GMT
Organic farming entails tasks like planting and harvesting, but organic farmers have additional work that differs greatly from conventional farmers. Organic production is very specific to comply with certifications and requirements mandated by the National Organic Program (NOP), which was created through the Organic Foods Production Act of 1990 (OFPA). The NOP develops, implements, and administers national production, handling and labeling USDA standards.

Rural Economy Improves to Almost Three Year High

Marc Schober — Mon, 20 Dec 2010 08:16:00 GMT
The rural economy continued to improve in December, driven by rising farm income and high grain prices. The USDA estimates that 2010 farm income increased 31% from 2009, which has led farmers to reinvest cash flows into farmland and farm equipment. The healthy rural economy has also led to improving employment numbers and lending conditions.

Grains Rally Again in December

Marc Schober — Mon, 03 Jan 2011 14:07:00 GMT
Grain prices continued their rally in December, which has kept the demand for farmland high. Corn, soybeans, and wheat all saw double-digit gains while farmland value reports revealed gains as high as 19% in localized areas over the last twelve months, according to Iowa State University Extension’s 2010 Land Value Survey. An extension of the ethanol blender’s tax credit was a major factor in the increase of grain prices this month. Weather conditions have also played a big role in grain prices

Corn Ending Stocks at 745 Million Bushels; Lowest Since 1995

Marc Schober — Thu, 13 Jan 2011 07:06:00 GMT
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 Wednesday. January’s report is typically one of the most anticipated and it was not a let down.

China Driving Corn Prices in 2011

Marc Schober — Thu, 20 Jan 2011 14:17:00 GMT
Global inventory levels of corn are nearing record lows, driven by a disappointing U.S. corn production in 2010, one of the strongest La Nina weather patterns in the last 50 years, higher than expected ethanol use, and strong demand from emerging markets. As we look towards our outlook for corn in 2011, our continued focus is China’s insatiable demand and short supply of corn.

Rural Economy Starts 2011 Strong

Marc Schober — Mon, 24 Jan 2011 08:20:00 GMT
The rural economy grew for the third straight month and advanced to its highest level since 2007, according to the Rural Mainstreet survey. Rising farm income and healthy spending from farmers continues to propel the rural economy. The overall Rural Mainstreet Index (RMI) increased to 59.3 from 55.4 in December, according to the survey of bank CEOs in a 10-state region. This marks the third straight month the index is above growth neutral 50.0, and the fifth straight month the index has incr

Weather and Acreage Driving Factors for Grains

Marc Schober — Tue, 01 Feb 2011 12:10:00 GMT
Wheat and corn lead the grain markets higher in January due to difficult global weather conditions early in the month and increased foreign demand throughout the month. Subsequently, farmland values have steadily been increasing with record sale prices across much of the Midwest driven by high commodity prices and the EPA’s approval of E15 gasoline. The USDA Prospective Plantings report is due out in late March, but analysts and traders will be making plenty of their own predictions in the

Ethanol Drives Corn Supplies to 15 Year Low

Marc Schober — Thu, 10 Feb 2011 07:45:00 GMT
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 Wednesday. February’s report is typically quiet, but strong corn demand has driven corn supplies to dangerously low levels.

Farmland Values Rose Double Digits in 2010

Marc Schober — Fri, 18 Feb 2011 07:15:00 GMT
Record grain prices and farmer income drove farmland prices to double digit gains in the last twelve months, according to the Federal Reserve Bank of Kansas City. The farmland market displayed the strongest year-over-year gains since 2007-08, as high farm income attracted farmer and investors to the market.

Rural Economy Grows in February, But at Slower Rate

Marc Schober — Tue, 22 Feb 2011 12:18:00 GMT
The rural economy grew for the fourth straight month, but the pace of growth slowed in February according to the Rural Mainstreet survey. Rising farm income and improving banking conditions are showing signs of sustained growth in the rural economy.

Acreage Reports and Political Unrest Affecting Grain Markets

Marc Schober — Tue, 01 Mar 2011 07:54:00 GMT
The USDA announced an early planting acreage estimate for the 2011 crop year this month. 92 million acres are forecasted to be planted with corn in the U.S. this spring; a 4.3% increase from 2010. Soybean acres were forecasted 0.7% higher and wheat acres 6.3% higher than in 2010. Any land that is capable of being farmed this year will be put into production by farmers capitalizing on high commodity prices.

Rural Economy Speeds Ahead in March

Marc Schober — Mon, 21 Mar 2011 05:14:00 GMT
The rural economy grew at a rapid pace in March as improving home sales, expanding farm equipment sales, and strong farmland values have improved the rural economic outlook. The overall Rural Mainstreet Index (RMI) improved to 56.7 from 55.3 in February, according to the survey of bank CEOs in a 10-state region. This marks the fifth straight month the index is above growth neutral 50.0 and well above the reading of 47.4 last March.

Corn Plantings to Rise; Prices Jump on Supply Concerns

Marc Schober — Fri, 01 Apr 2011 07:51:00 GMT
Grain prices are back in the headlines and futures prices are limit up as the USDA updated their 2011 plantings and quarterly grain stocks. The USDA expects big increases in corn, wheat, and cotton acres as farmers attempt to capitalize on high grain prices. Grain stocks are also reported at tight levels due to strong global demand.

Natural Disaster & USDA Reports Weigh on Markets

Marc Schober — Mon, 04 Apr 2011 07:59:00 GMT
The devastating earthquake and tsunami wreaked havoc on Japanese ports, feed mills, and livestock operations in early March sending a shock through the financial markets, including the grain markets. Japan is the largest importer of U.S. corn, which put a lot of pressure on the corn prices in the days following the quake.

The Future of Farming Goes Vertical

Marc Schober — Tue, 05 Apr 2011 07:44:00 GMT
Farmland is being lost at an alarming rate across the entire world due to urbanization, desertification, and erosion. More than one acre of U.S. farmland was lost per minute from 2002 to 2007, due largely in part to development, according to the American Farmland Trust. The world’s population is set to hit 9.2 billion by 2050, according to the U.N., and crop production yields are not going to be able to increase fast enough to meet global demand.

Crop Progress: Planting Already Behind Schedule

Marc Schober — Mon, 18 Apr 2011 16:39:00 GMT
Today, the USDA released its weekly planting progress report. Progress in corn planting is well behind last year’s record pace, with 4% of the crop being planted last week, 7% of the corn crop is already in the ground for the 18 primary producing states. This compares to a 5 year historical average of 8% in similar time periods, and 2010’s estimate of 16%.

Crop Progress: Planting Delayed Even Further on Wet Weather

Marc Schober — Tue, 26 Apr 2011 07:16:00 GMT
Yesterday, the USDA released its weekly planting progress report. Progress in corn planting is extremely behind last year’s record pace, with only 2% of the crop being planted last week, 9% of the corn crop is already in the ground for the 18 primary producing states. This compares to a 5 year historical average of 23% in similar time periods, and 2010’s estimate of 46%.

Rural Economy at Four Year High

Marc Schober — Thu, 28 Apr 2011 07:17:00 GMT
The rural economy soars to its highest level in nearly four years as rising farmland values, recovering employment market, and improving banking conditions have improved to the rural economic outlook. The overall Rural Mainstreet Index (RMI) improved to 59.4 from 56.7 in March, according to the survey of bank CEOs in a 10-state region. This marks the sixth straight month the index is above growth neutral 50.0 and well above the reading of 44.2 last April.

Wet Weather Delays Planting

Marc Schober — Mon, 02 May 2011 08:04:00 GMT
Record levels of precipitation have been recorded across much of the U.S. Corn Belt delaying the planting season for the corn crop. As of Monday, April 25th, only 9% of the entire U.S. corn crop had been planted, compared to 46% in 2010 and the 5-year historical average of 23%. The weather outlook for the next few weeks should provide relief to wet areas and moisture to the dry wheat regions in the southern plains.

Crop Progress: Alarming 87% Of The Corn Crop Yet To Be Planted

Marc Schober — Mon, 02 May 2011 15:45:00 GMT
Today, the USDA released its weekly planting progress report. Corn planting progress is very behind last year’s outstanding pace, with only 4% of the crop being planted last week, 13% of the total corn crop is in the ground for the 18 primary producing states. This compares to a 5 year historical average of 40% in similar time periods, and 2010’s estimate of 66%. Top corn producing states Illinois, Indiana, Kentucky, North Dakota, and Ohio all reported no progress in corn planting over the past

Maximizing Yields With Fertilizer

Marc Schober — Wed, 04 May 2011 07:31:00 GMT
Just like humans, crops need to be healthy in order to yield their maximum potential. The application of fertilizer helps keep plants strong and healthy by providing nutrients to a plant throughout its life. The three macronutrients that are essential for plant growth, especially in corn, soybeans, and wheat, are nitrogen, phosphorus, and potassium. Micronutrients are also very important in order to obtain high yields, but a much smaller amount by volume is needed in soil.

Crop Progress: Corn Planting Progress at 40%, Still Behind Schedule

Marc Schober — Mon, 09 May 2011 15:44:00 GMT
Today, the USDA released its weekly planting progress report. Corn planting made up important ground this past week, but is still significantly behind last year’s pace. With 27% of the crop being planted last week, 40% of the total corn crop is in the ground for the 18 primary producing states. This compares to a 5 year historical average of 59% in similar time periods, and 2010’s estimate of 80%. Wet weather patterns across much of the Corn Belt over the next week will undoubtedly play a major

Future Agricultural Production Limited

Marc Schober — Thu, 19 May 2011 09:57:00 GMT
The world’s gross agricultural output needs to increase by 3.4% to meet the growing demand primarily driven by emerging markets across the globe. The two primary ways to increase agricultural production are to either increase the amount of acres planted or increase productivity with technology.

Fed Reports Farmland Values Increase 16% in Midwest

Marc Schober — Fri, 20 May 2011 09:04:00 GMT
Farmland values in the Midwest increased 16% over the past 12 months, matching the largest increase since 2007 and last exceeded in 1979 according to the Seventh Federal Reserve District. In the first quarter of 2011, farmland values rose 5%. Farmers have been encouraged to take advantage of high commodity prices by purchasing additional land and expanding operations. The survey by the Federal Reserve Bank of Chicago found that there was more demand for farmland in the last six months ending

Spring Planting Progresses

Marc Schober — Wed, 01 Jun 2011 08:43:00 GMT
High levels of rain across much of the Corn Belt continued to delay planting this month, although farmers have been working around the clock trying to make up for lost time. As of Monday, May 23rd, 79% of the entire U.S. corn crop had been planted, compared to 92% in 2010 and the 5-year historical average of 87%.

World Running Out of Farmland

Marc Schober — Wed, 08 Jun 2011 08:34:00 GMT
“The Nation that destroys its soil destroys itself.” – President Franklin D. Roosevelt Grain prices have more than doubled over the last year as the world is starting to realize that the food supply is running out. In 9 of the 10 last years, the global consumption of grain has outpaced production according to the USDA. To meet future demand, experts are predicting that global agriculture will need to produce more food in the next 50 years than what was produced during the previous 10,000 year

USDA Lowers Corn Production Estimates

Marc Schober — Thu, 09 Jun 2011 15:07:00 GMT
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 today. WASDE reports in the summer are a barometer of overall world demand, forecasted production, and inventory adjustments. In June, U.S. ending stocks for 2011/12 were revised lower for corn and wheat, but increased for soybeans.

Rural Economy Continues to Improve, But Flooding Constrains Growth

Marc Schober — Mon, 20 Jun 2011 15:34:00 GMT
The rural economy continued to improve in June, although bankers expect the flooding to have negative impacts and the local economy and tourism. Farmland prices remain strong and well above growth neutral, but the farmland price index dropped to its lowest level since October of last year.

Crop Progress: Corn Crop Continues to Improve, Soybeans Catching Up

Marc Schober — Tue, 21 Jun 2011 08:03:00 GMT
Corn emergence is inching closer to completion according to today’s USDA weekly progress report of the 18 primary producing states. Last week saw, 6% of the entire corn crop emerge; bringing the total emerged crop to 97%. This compares to a 5 year historical average and 2010 estimate of 99% and 100% respectively. Pennsylvania remains the biggest laggard with only 76% of their crop emerged compared to a 5 year average of 92%.

Volatile June for Agriculture

Marc Schober — Tue, 05 Jul 2011 08:26:00 GMT
Rain continued to delay farmers planting corn and soybeans throughout June, but hard work and long hours have lead to crop progress almost entirely catching up to historical averages. As of June 20th, 97% of the U.S. corn crop had emerged while the 5-year historical average is 99%. 92% of the U.S. soybean crop had emerged by June 27th; on par with the historical average.

Irrigation: Yield Enhancer or Farmland Destroyer?

Marc Schober — Mon, 11 Jul 2011 09:03:00 GMT
Irrigation in the United States can be traced back over 4,000 years. Irrigation has evolved from farmers digging ditches by hand along field borders, to fully automated systems that operate on GPS and can be monitored wirelessly via cell phone or computer. In 2008, producers spent $2.1 billion on irrigation equipment, facilities, land improvements, and computer technology. Of those expenses, 50% was for replacement of existing equipment, 35% for new expansion, and 15% for water conservation.

Crop Progress: Corn Silking Slowly Continues, Soybean Condition Better Than Last Year

Marc Schober — Tue, 12 Jul 2011 08:12:00 GMT
According to today’s USDA weekly progress report of the 18 primary corn producing states, the percentage of the corn crop rated good or excellent remained unchanged over this past week. The percentage of crop rated poor or very poor remained the same at 9%, while the percentage of crop rated fair decreased to 22%. Condition ratings remain behind the 2010 crop, as 73% of the corn crop was in good or excellent condition, 18% was in fair condition, and 9% was in poor or very poor condition.

USDA Mixed To Bullish News for All Commodities

Marc Schober — Tue, 12 Jul 2011 14:40:00 GMT
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 today. WASDE reports in the summer are a barometer of overall world demand, forecasted production, and inventory adjustments. In July, U.S. ending stocks for 2011/12 were revised higher for corn, but decreased for soybeans and wheat.

Crop Progress: Excessive Heat Diminishes Crop Conditions

Marc Schober — Tue, 19 Jul 2011 07:14:00 GMT
According to today’s USDA weekly progress report of the 18 primary corn producing states, the percentage of crop rated good or excellent fell by three percentage points to 66% over this past week. The percentage of crop rated poor or very poor increased by two percentage point to 11%, while the percentage of crop rated fair increased to 23% from 22% the previous week. Condition ratings still remain behind the 2010 crop, as 72% of the corn crop was in good or excellent condition, 19% was in fair

Rural Economy Continues to Expand; But at Slower Pace

Marc Schober — Fri, 22 Jul 2011 08:20:00 GMT
The rural economy improved in July for the ninth straight month, although slower growth in farmland sales and farm equipment, have slowed the rate of expansion. Bankers remain positive on the outlook for the rural economy, as agriculturally dependent areas continue to expand at a positive pace. The overall Rural Mainstreet Index (RMI) declined slightly to 55.7 from 56.0 in June, according to the survey of bank CEOs in a 10-state region. June’s reading marks the ninth straight month the index

Chinese Imports Increase, As Do Crop Prices In July

Marc Schober — Thu, 04 Aug 2011 07:38:00 GMT
Extreme weather patterns across much of the U.S. have lead to increasing grain prices throughout July. Farmers have been busy scouting for aphids in their soybean fields and timing the spraying of herbicides and fungicides in their crops in July, but a very severe heat wave left many crops in the Midwest damaged in mid-July. Temperatures in the Midwest were very high with dangerously high humidity levels. Champaign, Illinois had a seven-day span of temperatures in excess of 90°, while nine o

Summer Heat and Corn Yields

Marc Schober — Thu, 04 Aug 2011 14:05:00 GMT
Questions about diminishing crop conditions have been raised in July, as the Corn Belt has been plagued with unseasonably high temperatures for most of the past two weeks. This prolonged period of hot, dry weather caused the USDA to lower crop condition estimates for both corn and soybeans in each of the past two weeks. According to a recent publication by UBS Investment Research, “The 2011 corn crop is off to a start that we believe would be consistent with below normal growing conditions.” Sin

USDA Lowers Production Estimates Due to Difficult Weather

Marc Schober — Fri, 12 Aug 2011 12:11:00 GMT
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 today. WASDE reports in the summer are a barometer of overall world demand, forecasted production, and inventory adjustments. In August, U.S. ending stocks for 2011/12 were revised lower for corn and soybeans, but increased for wheat. Corn The majority of news for the U.S. corn market can be seen as bullish, as the 2011/12 U.S.

USDA: Crop Conditions Remain Flat

Marc Schober — Mon, 15 Aug 2011 16:45:00 GMT
According to today’s USDA weekly progress report, the percentage of 2011 corn crop rated good or excellent remained flat at 60% over this past week. The percentage of crop rated poor or very poor decreased by one percentage point to 15%, while the percentage of crop rated fair increased one percentage point to 25%. Condition ratings still remain behind the 2010 crop, as 69% of the corn crop was in good or excellent condition, 20% was in fair condition, and 11% was in poor or very poor condition.

Kansas City Fed: Farmland Values Increase 20%

Marc Schober — Tue, 16 Aug 2011 07:19:00 GMT
Rising farmland values and strong farm loan portfolio performance were the highlights in the Federal Reserve Bank of Kansas City’s second quarter survey of Agricultural Credit Conditions. The survey details several indicators of farm financial condition in the 10th District, including farmland values, interest rates on farm loans, and credit supply and demand.

Chicago Fed: Farmland Values Post Largest Gain Since the 1970’s

Marc Schober — Thu, 18 Aug 2011 13:32:00 GMT
During the second quarter, farmland values in the 7th Federal Reserve District rose 17% over the last twelve months according to the Federal Reserve Bank of Chicago’s second quarter survey of Farmland Values and Agricultural Credit Conditions Report. Across the District, the value of “good” farmland increased 4% in the second quarter compared to the first quarter of 2011. Among the District states, only Wisconsin had a smaller year-over-year increase in farmland values in the second quarter of 2

Rural Economy Outlook Deteriorates in August

Marc Schober — Tue, 23 Aug 2011 09:02:00 GMT
The rural economy declined in August for the first time in 2011 as economic confidence and home sales deteriorated to below growth-neutral levels. The bright spot continues to be agriculture. Farmland values continued to appreciate, and the majority of bankers expect value to appreciate over the next 12 months.

Volatile Markets and Poor Crop Conditions Headline in August

Marc Schober — Thu, 01 Sep 2011 09:01:00 GMT
World equity markets became continued the volatility throughout August as the fear of a double dip recession is becoming stronger. In early August, Standard & Poors downgraded the U.S. Government from their AAA debt rating to a AA+ which sent stocks into a downfall as investors moved assets into safer places, like the hard asset, gold. District Federal Reserve Banks released their quarterly farmland values reports in August which revealed a cropland price increase of 17% and 20% across the C

Crop Progress: Corn and Soybean Conditions Decrease

Marc Schober — Wed, 07 Sep 2011 07:12:00 GMT
Yesterday, the USDA released its weekly crop progress report. The corn crop condition worsened by two percent over the past week and is significantly lagging behind the historical average. The soybean crop condition decreased by one percent compared to last week’s report as well. The USDA estimated 52% of the corn crop is in good or excellent condition, while 21% is in poor or very poor condition. During this week in 2010, 69% of the crop was in good or excellent condition and only 11% was in po

WASDE Report: Let the Corn Rationing Begin

Marc Schober — Mon, 12 Sep 2011 10:59:00 GMT
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 today. Summer heat and excessively dry weather across the U.S. Corn Belt throughout August hurt crop conditions, which led to a reduction in the estimated average corn yield per acre in the U.S. to the lowest since the 2005/06 season.

Crop Progress: Corn Harvest on Schedule

Marc Schober — Tue, 20 Sep 2011 08:11:00 GMT
This afternoon, the USDA released its weekly crop progress report. The corn harvest is 10% complete which is on pace with the 11% 5-year historical average. The USDA estimated 51% of the corn crop is in good or excellent condition, down 2% from last week. The estimate for corn condition in very poor or poor condition increased to 21%, compared to 20% last week. Last year at this time, 11% of the crop was in very poor or poor condition while 68% was in good or excellent condition.

The Rural Economy Outlook Turns Positive in September

Marc Schober — Tue, 20 Sep 2011 10:43:00 GMT
The Rural Mainstreet Index (RMI) advanced to 52.2 from a 49.3 to move into positive growth for September after falling below growth neutral in August. Farmland values continued to grow as bankers are optimistic about appreciation growth for the next 12 months. After three months of consecutive declines, the RMI increased to 52.2 and surpassed the neutral mark of 50.0. The index is now at a positive growth and positioned well above the 47.6 it posted 12 months ago.

A Day in Agriculture: Combine in WI

Marc Schober — Thu, 29 Sep 2011 08:28:00 GMT
This picture comes from my parents farm where I grew up in Wisconsin.

Crop Progress: Corn Harvest Continues

Marc Schober — Thu, 29 Sep 2011 09:09:00 GMT
On Monday, the USDA released its weekly crop progress report. The corn harvest is 15% complete, which is on pace with the 16% five-year historical average. USDA estimated 52% of the corn crop is in good or excellent condition, up 1% from last week.

Corn Stocks Rise Back Above 1 Billion Bushels

Marc Schober — Fri, 30 Sep 2011 11:16:00 GMT
The USDA released their Quarterly Grain Stocks report today which was seen as bearish for grains as stocks data came in higher than analyst expectations for corn and wheat. Soybeans had a slightly bullish tone as stocks were reported less than expected.

Yield Expectations Decrease Leading into Harvest

Marc Schober — Mon, 03 Oct 2011 07:13:00 GMT
Commodity prices suffered throughout the month of September due to the increasingly weary state of the global economy. Investors have been reallocating their assets in accordance to the European debt situation and worries of a double-dip recession. Tight grain supplies are still present, but economic concerns and decreased demand continue to impact short-term prices.

Crop Progress: Corn Harvest on Average Pace

Marc Schober — Mon, 03 Oct 2011 16:52:00 GMT
This afternoon, USDA released its weekly crop progress report. The corn harvest is 21% complete, which is on pace with the 23% five-year historical average. USDA estimates 52% of the corn crop is in good or excellent condition, same as last week. The estimate for corn in poor or very poor condition also went unchanged from last week at 20%. Last year at this time, 13% of the crop was in poor or very poor condition while 66% was in good or excellent condition.

Crop Progress: Corn Harvest on Schedule

Marc Schober — Tue, 11 Oct 2011 16:19:00 GMT
This afternoon, the USDA released its weekly crop progress report. The corn harvest is 33% complete which is on pace with the 33% 5-year historical average. USDA estimated 53% of the corn crop is in good or excellent condition which is up 1% from last week. The estimate for corn condition in poor or very poor condition is 19% compared to 20% last week. Last year at this time, 11% of the crop was in poor or very poor condition while 68% was in good or excellent condition.

WASDE Report: Higher U.S. Corn Ending Stocks

Marc Schober — Wed, 12 Oct 2011 12:18:00 GMT
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 today. There were minor changes in this month’s estimates, following the big increase in supplies from the quarterly stocks report at the end of September.

Chinese to Import Record Amount of Corn in 2012

Marc Schober — Mon, 17 Oct 2011 07:37:00 GMT
China, a historically self-sufficient corn producer, is harvesting a record-large crop of 166.6 million tons for the 2011/12 season. Despite the record crop, China will still be structurally short of corn for the seventh out of eighth year as use is estimated at 170.1 million tons. The U.S. Grains Council projects China to need to import 5-10 million tons of corn for the 2011/12 season, a significant increase from the USDA's estimate of 2.0 million tons

Crop Progress: Corn Harvest Ahead of Schedule

Marc Schober — Mon, 17 Oct 2011 16:20:00 GMT
This afternoon, USDA released its weekly crop progress report. The corn harvest is 47% complete, which is ahead of the 41% five-year historical average. USDA estimated 53% of the corn crop is in good or excellent condition, which is the same as last week. The estimate for corn in poor or very poor condition is also the same as last week, at 19%.

Rural Economy Rises Slightly in October

Marc Schober — Mon, 24 Oct 2011 07:33:00 GMT
The rural economy continued to inch forward in October and has remained above growth neutral for nearly two years. Farmland values remained elevated as bankers are optimistic about growing appreciation for the next 12 months, driven by rising cash rental rates.

Crop Progress: Harvest for Corn and Soybean Ahead of 5-Year Average

Marc Schober — Mon, 24 Oct 2011 16:42:00 GMT
This afternoon, the USDA released its weekly crop progress report. The corn harvest is 65% complete, which is ahead of the 51% 5-year historical average. USDA estimated 54% of the corn crop is in good or excellent condition, which is a 1% increase from last week. The estimate for corn condition in poor or very poor condition is the same as last week at 19%.

Is Farmland in A Bubble?

Marc Schober — Mon, 31 Oct 2011 07:14:00 GMT
Recent sales of Midwestern farmland have been reaching prices of $10,000, $12,000, and even $16,000 an acre. The media and well-known market pundits have been highlighting these high dollar sales and making an argument that farmland is in a bubble.

Crop Progress: Corn and Soybean Harvest Exceed the 5-Year Average

Marc Schober — Mon, 31 Oct 2011 16:14:00 GMT
This afternoon, the USDA released its weekly crop progress report. The corn harvest is 78% complete, which is ahead of the 62% 5-year historical average, but behind last year's October 30th percentile of 90%.

Bins filling up Quickly this October

Marc Schober — Tue, 01 Nov 2011 07:17:00 GMT
The end of October marks a major milestone for the world, as the global population is now at 7 billion people. Farmers jobs get harder and harder every day as the world’s population continues to rapidly grow. The United Nations estimates that by 2050, the global population will reach 9.3 billion and require twice as much food production.

Crop Progress: Corn and Soybean Harvest Nearing Completion

Marc Schober — Mon, 07 Nov 2011 17:10:00 GMT
This afternoon, the USDA released its weekly crop progress report. The corn harvest is 87% complete, which is well ahead of the 73% 5-year historical average, but behind last year's 95% harvested for the first week of November.

Understanding the Relationship Between Ethanol and DDGS

Marc Schober — Tue, 08 Nov 2011 07:39:00 GMT
The debate about the use of grain for food vs. fuel continues, but should there even be a debate? Critics of ethanol argue that the large amount of corn used in ethanol production is a poor use of the food supply. Congress recently pointed to ethanol as the major contributor to increased prices of feed and food.

WASDE Report: Corn and Soybean Production Fall

Marc Schober — Wed, 09 Nov 2011 14:06:00 GMT
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 today. The USDA stunned the market today by decreasing U.S. corn yields, although reduced U.S. corn demand helped settle the bullish tone.

Rural Economy at Highest Level Since 2007

Marc Schober — Fri, 18 Nov 2011 14:39:00 GMT
The rural economy showed a strong rebound in November and is now at its highest level since 2007. The index has remained above growth neutral for nearly two years, driven by the strong farm economy. Farmland values continue to rise as farmers reinvest their cash flows from a record income harvest in 2011.

WASDE Report: World Corn Production Increases, Prices Decrease

Marc Schober — Fri, 09 Dec 2011 12:27:00 GMT
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 today. No major changes in December’s report, but the USDA did lower expected prices for commodities, including a 30 cent reduction for corn prices in 2011/12. Corn Slightly bearish news from the USDA as world corn production increased to 867.5 million tons despite the U.S. production decline of 3.5 million tons year-to-year.

Farmland Price Index Reaches Record High

Marc Schober — Mon, 19 Dec 2011 09:39:00 GMT
The rural economy continued to move forward and has remained above growth neutral for nearly two years, reaching its highest level since June of 2007. The farmland price index reached a record high in the month of December and cash rents followed the rising trend.

La Niña Causes Grain Rally

Marc Schober — Tue, 03 Jan 2012 07:41:00 GMT
Throughout the month, farmers have been busy working on end of the year accounting, purchasing farmland, expanding operations, and preparing for the spring planting season. The weather across the Corn Belt has been very mild compared to twelve months prior, but cold temperatures are promoting a healthy frost in the ground that will help break up compaction and kill disease and pests.

2012 Outlook for U.S. Grain Prices

Marc Schober — Mon, 09 Jan 2012 07:18:00 GMT
Grain prices have been volatile throughout 2011 due to wide changes in production and demand estimates, as well as macro issues including the European debt crisis.

WASDE: USDA Starts Year Off With a Surprise

Marc Schober — Thu, 12 Jan 2012 15:02:00 GMT
The USDA caught the grain market by surprise this morning, resulting in corn and wheat prices plummeting. Analysts were expecting the USDA to reduce ending corn stocks by 100 million bushels due to lower than expected yields, but the USDA actually increased corn yields and production, leaving stocks roughly unchanged.

Rural Mainstreet Index Reaches Five Year High

Marc Schober — Mon, 23 Jan 2012 07:46:00 GMT
The rural economy continued to move forward this month, reaching its highest level since June of 2007. The farmland price index fell to a still growth positive reading after reaching a record high level in December 2011.

Grain Markets Volatile per USDA Report

Marc Schober — Wed, 01 Feb 2012 07:39:00 GMT
U.S. grain markets began 2012 on a strong note, but the January WASDE report quickly brought volatility back. La Niña has continued to cause problems for South American farmers, with expected yields decreasing by the month and providing support to the global grain market. A strengthening U.S. dollar has slowed the grain rally in late January alongside renewed European debt concern.

WASDE: An Agreement between USDA and Consensus

Marc Schober — Thu, 09 Feb 2012 13:14:00 GMT
It almost seems as if the USDA got together with the consensus to amend their differences as USDA forecasted supplies for corn, soybean, and wheat are in line with the analysts. South America and Russia continue to the be on everyone's radar as yields in South America and government involvement from Russia could affect the grain markets.

Rural Mainstreet Index Remains Strong

Marc Schober — Fri, 17 Feb 2012 12:02:00 GMT
The Rural Mainstreet Index (RMI) declined modestly this month, due to large decreases in farm equipment sales and loan volume. The main driver of the index continues to be farm income, and for the 25th straight month, the index has been above growth neutral.

Farmland Values Post the Largest Increase since 1976

Marc Schober — Tue, 21 Feb 2012 09:00:00 GMT
From Jan. 1, 2011 to Jan. 1, 2012, farmland values in the 7th Federal Reserve District rose 22%, the largest annual increase since 1976 according to the Federal Reserve Bank of Chicago’s fourth quarter survey of Farmland Values and Credit Conditions Report. The value of "good" farmland increased 4% in the fourth quarter compared to the third quarter of 2011. All District states posted higher year-over-year increases in farmland values and the largest year-over-year land value increases cam

Kansas City Fed: Farmland Values Rise 25%

Marc Schober — Wed, 22 Feb 2012 11:27:00 GMT
Record high farmland values and strong farm income were highlighted in the Federal Reserve Bank of Kansas City's recent fourth quarter survey of Agricultural Credit Condition. The survey detailed several indicators of farm financial conditions in the 10th District including farmland values, interest rates on farm loans, and credit supply and demand.

Soybeans Rally to Five-Month High

Marc Schober — Thu, 01 Mar 2012 08:48:00 GMT
Farmers are anxiously waiting to start the 2012 planting season which typically commences the second week of April, but may arrive early this year. Mild temperatures and lack of moisture will lead to early field access for farmers across the Corn Belt. Grain markets performed well this month as global demand for grains continues to increase as proven by strong export data and a weaker U.S. Dollar. Farmland values also continued to increase according to District Federal Reserve Reports.

WASDE: Minimal Changes in March

Marc Schober — Fri, 09 Mar 2012 13:31:00 GMT
The WASDE had minimal changes for the U.S. balance sheet, but did have significant revisions for South America. Soybean production in South America was reduced by a total of 6.4 million tons. The lack of changes was expected for corn, but an increase to domestic soybean exports was expected.

Bankers: Cash Rent Prices on the Rise

Marc Schober — Mon, 19 Mar 2012 07:28:00 GMT
The Rural Mainstreet Index (RMI) increased slightly this month, primarily due to increased exports of agriculture commodities. Farm income continued to grow as March marked the 26th straight month the index has been above growth neutral. Cash rent prices for agricultural land have been increasing alongside farmland values and farm income.

Attractive Investment Outlook for Canadian Farmland

Marc Schober — Tue, 20 Mar 2012 07:38:00 GMT
Investing in agriculture has been one of the most popular investments over the last two years due to multi-decade low global grain supplies and growing demand from emerging markets. Grain prices and farmland values have risen substantially as capital has been attracted to agriculture’s rapid growth. The demand for agricultural assets has made attractive investment opportunities in agriculture harder and harder to find.

Projected Planted Corn Acres at 75 year High

Marc Schober — Fri, 30 Mar 2012 13:48:00 GMT
The USDA estimates in 2012 the U.S. will plant 95.9 million acres of corn, the most since before World War II. The record planting estimate surprised the market that was expecting more acres allocated to soybeans and spring wheat. Soybean planted acres decreased by a percent at the expense of the increased corn acres planted. The increase in corn acres in the Prospective Plantings report was bearish for corn, but the Quarterly Stocks report more than offset this increase. The U.S. only has 6.01

Grain Markets End March on a Bullish Note

Marc Schober — Mon, 02 Apr 2012 07:06:00 GMT
One of the warmest and dry springs in recent memory, will allow farmers to plant the largest corn crop since 1937. Favorable weather across the Corn Belt has farmers already planting in some of the southern regions. In many areas of the Corn Belt, the first planting date allowed by crop insurance has been moved forward a few days. Grain prices were declining throughout March as the markets were building in a worst-case scenario for the USDA Prospective Plantings and Quarterly Stocks, but lower t

Crop Progress: Corn and Spring Wheat Planting off to a Fast Start

Marc Schober — Mon, 02 Apr 2012 16:38:00 GMT
This afternoon, the USDA released its first weekly crop progress report of the 2012 planting season. Although a small amount of data was released, it highlighted how warm weather motivated farmers to plant earlier than normal.

Crop Progress: Corn and Spring Wheat Ahead of 5-Year Averages

Marc Schober — Mon, 09 Apr 2012 15:57:00 GMT
This afternoon, the USDA released its weekly crop progress report. Corn and spring wheat planting continue to outpace historical averages.

WASDE: U.S. Corn Ending Stocks Unchanged

Marc Schober — Tue, 10 Apr 2012 11:43:00 GMT
The April WASDE forecasted an unchanged balance sheet for U.S. corn. This comes as a surprise as most analysts expected U.S. corn ending stocks to significantly decrease after last month's Quarterly Stocks Report indicated an 8% drop in corn held in all positions. As predicted, soybean production and stocks decreased worldwide.

Crop Progress: An Early Planting Season

Marc Schober — Tue, 17 Apr 2012 16:05:00 GMT
The USDA released its weekly crop progress report today, a day late due to an electrical fire at their Washington, DC offices yesterday. Corn planted acres continues to outpace historical averages.

Rural Economy Slows in April

Marc Schober — Mon, 23 Apr 2012 07:36:00 GMT
The Rural Mainstreet Index (RMI) decreased slightly this month, but remained well above growth neutral. The farmland price index declined in April, indicating slower growth in values, but remained above growth neutral for the 27th continuous month.

Crop Progress: Everyone is Above Average

Marc Schober — Mon, 23 Apr 2012 16:06:00 GMT
This afternoon, the USDA released its weekly crop progress report. Soybeans joined the mix and are outpacing average historical planting percentages as well.

A Breakdown of Renewable Fuel Standards

Marc Schober — Mon, 30 Apr 2012 08:27:00 GMT
The U.S.'s course of providing cleaner and cheaper fuel while having less dependence on foreign oil has been a subject of much debate. Some believe in drilling domestic oil would provide the best course, others in increasing ethanol production, or pushing for electric powered vehicles. Whichever route the U.S. chooses, it better be fast as gas is pressing $4 per gallon.

Sather Agriculture LP Top Hedge Fund in March

Marc Schober — Mon, 30 Apr 2012 11:24:00 GMT
NEW YORK, NEW YORK, April 30, 2012 – Colvin & Co. LLP is proud to announce its farmland focused fund, Sather Agriculture LP, had the 4th highest monthly return in March for hedge funds, according to Morningstar. Sather Agriculture LP increased 20.0% in March, 2012, and is up 20.8% year-to-date.

Crop Progress: More Than Half the U.S. Corn Already Planted

Marc Schober — Mon, 30 Apr 2012 15:55:00 GMT
This afternoon, the USDA released its weekly crop progress report and to no surprise, corn, soybeans, and wheat are all out pacing their historical averages.

Soybeans End April at Three-Year High

Marc Schober — Tue, 01 May 2012 07:21:00 GMT
Grain markets were range bound in April as the markets digested the implications of last month’s planting report. Soybeans have continued their rally and now stand at a three-year high after the USDA announced that U.S. farmers will plant the largest corn crop since World War II at the expense of soybean acreage. China shocked the market at the end of the month by buying 1.5 million tons of U.S. corn, the largest one-day sale since 1991.

Crop Progress: Majority of U.S. Corn in the Ground

Marc Schober — Mon, 07 May 2012 16:03:00 GMT
This afternoon, the USDA released its weekly crop progress report indicating almost three-fourths of the U.S. corn crop has been planted.

Colvin & Schober’s Guide to Investment in Farmland

Marc Schober — Thu, 10 May 2012 09:25:00 GMT
Greyson Colvin and Marc Schober both grew up in the Midwest with farming in their families. Using their expertise in agriculture, Colvin & Schober were pioneers in the farmland investment industry. Now the two are putting their knowledge into the Investors’ Guide to Farmland, the handbook to educate investors about the investment opportunities in US farmland.

WASDE: Corn Stocks Surprise to the Upside

Marc Schober — Thu, 10 May 2012 14:40:00 GMT
The USDA continued their streak of surprises by increasing ending corn stocks for 2011/12, despite analysts projecting a reduction in domestic corn supplies. The May WASDE also produced the first official projections for 2012/13, with a record high corn yield of 166 bushels. Domestic soybean stocks continue to dwindle as the usage ratio will be at a historically low rate due to increased U.S. exports and decreased South American production.

Protectionism in Argentina Threatens Foreign Investment

Marc Schober — Mon, 14 May 2012 05:35:00 GMT
Foreign investors looking to invest in the fertile farmland of Argentina will be significantly limited by the Rural Land Law, passed in late 2011 by the Argentine Government. Argentina is concerned over the growing amount of foreign ownership of their natural resources. Nearly 7.0% of Argentina's arable land is owned by foreigners, according to the Agrarian Federation of Argentina.

Corn Belt Farmland Values Continue to Rise

Marc Schober — Mon, 21 May 2012 10:00:00 GMT
Farmland values rose 19% over the last twelve months as farmers continued to purchase land to capitalize on high grain prices, according the Federal Reserve Bank of Chicago. The value of "good" farmland increased 5% in the first quarter of 2012 compared to the fourth quarter of 2011.

Crop Progress: Corn Condition Well Above Average

Marc Schober — Mon, 21 May 2012 16:09:00 GMT
This afternoon, the USDA released its weekly crop progress report indicating all three crops, corn, soybeans, and wheat are in above average condition due to favorable weather across the Corn Belt.

Farmland Values Increase 25% in Second Consecutive Year

Marc Schober — Tue, 22 May 2012 07:40:00 GMT
Farmland values increased by over 20% for the second straight year in the Tenth District of the Federal Reserve Bank of Kansas City. Easing drought conditions in the Tenth District and crop prices that increased in the fourth quarter of 2011 lead to increased farmer income which was in turn reinvested in farmland thus driving demand for farmland and prices higher.

Early Planting Is Driving the Rural Economy

Marc Schober — Wed, 23 May 2012 07:18:00 GMT
The Rural Mainstreet Index (RMI) increased slightly this month as bankers are optimistic about the agriculture environment with historically early planting and above average crop conditions. The farmland price index declined in May, indicating slower growth in values, but remained above growth neutral for the 28th consecutive month.

Crop Progress: Corn Conditions Worsen by 5%

Marc Schober — Tue, 29 May 2012 16:50:00 GMT
Although corn conditions remain above average, they declined by 5% from last week due to hot a dry weather across the corn belt.

Grain Prices Decrease on Strong Crop Conditions

Marc Schober — Mon, 04 Jun 2012 07:19:00 GMT
Above average crop progress of corn, soybeans, and wheat across the U.S. has lead to a bearish outlook on new crop grain prices. The 2012 corn crop in good or excellent condition stood at a full 9% better than in 2011 and timely rains that moved across the Corn Belt at the end of the May should continue to suppress prices. The economic slowdown in the U.S., China, and the rest of the world has also pushed grain prices lower alongside the strengthening U.S. Dollar.

Crop Progress: Corn Conditions Remain the Same

Marc Schober — Mon, 04 Jun 2012 15:54:00 GMT
Corn conditions remain constant and going forward we will keep a close eye on the hot and dry weather patterns in the Corn Belt which could have an adverse effect on conditions.

Crop Progress: Crop Conditions Weaken Below 2011 Levels

Marc Schober — Mon, 11 Jun 2012 15:57:00 GMT
Corn and soybean conditions worsened this week and are below last year's levels for the first time this year. Dry and hot conditions across the Corn Belt are blamed for these poor crop conditions as many farmers are hoping for a much needed rainfall.

WASDE: Corn Balance Sheets Remain Unchanged

Marc Schober — Tue, 12 Jun 2012 10:02:00 GMT
The USDA projected corn balance sheets as unchanged in June, a slight surprise to analysts as they estimated a reduction in supplies due to dry weather in the corn belt. Soybean and wheat supplies were decreased slightly, in line with analysts' expectations. Today marked the first time the Chicago Board of Trade was open during the WASDE's 7:30AM CT release time.

Crop Progress: Midwest Conditions Remain Dry

Marc Schober — Mon, 18 Jun 2012 16:17:00 GMT
Corn and soybean conditions decreased for the second consecutive week due to the lack of precipitation across much of the Corn Belt. Rains came across less than half of the Corn Belt this weekend and fell short of the much needed moisture. Dry and hot weather conditions are forecasted for the rest of this week.

Global Economy Affecting Rural Economics

Marc Schober — Mon, 25 Jun 2012 13:01:00 GMT
The Rural Mainstreet Index (RMI) decreased slightly this month, but remains growth positive, as the global economy continues to slowdown. The farmland price index declined this month to its lowest level since July 2011, but remained above growth neutral for the 29th consecutive month.

Crop Progress: Corn Conditions Dangerously Low

Marc Schober — Mon, 25 Jun 2012 15:55:00 GMT
Corn and soybean conditions declined for the third consecutive week as the Corn Belt continues to see hot and dry weather. Abundant rainfall is needed for conditions to improve. Expectations for a record corn crop in 2012 are all but eliminated and now the question is “How tight will stocks be?”

Corn Stocks at Lowest Level since 1998

Marc Schober — Fri, 29 Jun 2012 11:32:00 GMT
Corn stocks were 14% below last year's levels and the lowest Q3 number since the 3.04 billion bushels in June of 1998, indicating strong global demand for corn. The USDA estimates in 2012 the U.S. will plant 96.4 million acres of corn, the most since 1937 when an estimated 97.2 million acres were planted; this came as no surprise as corn planted acres fell in line with analysts' expectations.

Hot Weather Sets Grain Market on Fire

Marc Schober — Mon, 02 Jul 2012 07:41:00 GMT
Extremely hot weather in the Corn Belt has left crop conditions at dangerously low levels and grain prices reaching nine month highs. Illinois and Indiana have been the hardest hit by drought, which rank second and fifth in corn output respectively. Expectations for a record corn crop in 2012 are all but eliminated and the question now is “How tight will stocks be?”

Crop Progress: Corn Crop at Alarming Conditions

Marc Schober — Mon, 02 Jul 2012 16:27:00 GMT
Corn and soybean conditions declined by an alarming 8% as the Corn Belt continues to see hot and dry weather. Abundant rainfall would help, but not replace the record 2012 corn crop that was predicted. Farmers are starting to find crop conditions beyond repair this summer and losing a significant portion of their crop.

Crop Progress: Corn Crop at Irreversible Condition?

Marc Schober — Mon, 09 Jul 2012 16:17:00 GMT
Corn and soybean conditions declined by another 8% this week due to continued hot and dry weather across the Corn Belt. Farmers are starting to realize that a large chunk of their corn crop has been lost to the heat wave.

WASDE: Largest Corn Yield Reduction in a Decade

Marc Schober — Wed, 11 Jul 2012 09:52:00 GMT
The USDA projected corn yields in 2012 have dropped 12% month-to-month, the largest monthly reduction in the last decade, due to the worst drought in the Midwest since 1988. As expected, the USDA offset part of the yield loss with decreased feed and ethanol demand for corn. The July WASDE also estimated that soybean yields have deteriorated by 3.4% to 40.5 bushels per acre.

Corn Crop in Critical Condition

Marc Schober — Mon, 16 Jul 2012 16:03:00 GMT
Corn and soybean conditions have yet again plummeted as hot and dry weather continues to abuse the crops along the Corn Belt.

Crop Progress: Bad Gets Worse

Marc Schober — Mon, 23 Jul 2012 16:14:00 GMT
Corn and soybean conditions declined from their already critical state. Prices for all three grains are hitting all time highs as supply is expected to be slim come harvest.

Severe Drought Affecting Rural Economics

Marc Schober — Tue, 24 Jul 2012 08:54:00 GMT
The Rural Mainstreet Index (RMI) decreased to its lowest level in two years, to below growth neutral, as severe drought conditions continue to have an adverse effect on the rural economy . The farmland price index declined this month to its lowest level since September of 2010, but remained above growth neutral for the 30th consecutive month.

Importance of Farm Management

Marc Schober — Mon, 30 Jul 2012 08:45:00 GMT
Proper management of farmland is vital for an investor to capitalize on the overall appreciation of the asset. Farming today is more than just producing crops, it requires farmers and landowners to address profitability, fertility, conservation, and tax issues to name just a few. The importance of a knowledgeable and professional farm manager is essential for maximizing the appreciation and income of investment farmland.

Crop Progress: Corn Conditions Decline for Eighth Straight Week

Marc Schober — Mon, 30 Jul 2012 16:40:00 GMT
Corn conditions have deteriorated every week for the past two months as farmers prepare for the worst drought since the dust bowl.

Crop Progress: Irreversible Corn Conditions

Marc Schober — Mon, 06 Aug 2012 15:50:00 GMT
Corn conditions remain in a dismal state and at this point in the growing season, there is little chance of improvement. Farmers across the Corn Belt will have to accept lower yields and/or insurance payments due to the prolonged drought.

WASDE: Drought Reduces Corn Yields to 17 Year Low

Marc Schober — Fri, 10 Aug 2012 10:15:00 GMT
The USDA projected corn yields in 2012 have dropped more than 15% month-to-month, after a 12% reduction last month, due to the worst drought in the Midwest since 1956. U.S. corn supplies are estimated at a nine year low and U.S. corn and soybean prices reach record levels.

Crop Progress: Conditions Remain Dismal

Marc Schober — Mon, 13 Aug 2012 16:47:00 GMT
Corn conditions continue to be in a dire situation, but remained unchanged week to week. With harvest approaching, we look forward to actual yields as the USDA estimated an average corn yield of 123.4 bushels per acre last week.

Drought Slows Increases in Farmland Values

Marc Schober — Mon, 20 Aug 2012 07:33:00 GMT
Farmland values rose 15% in the last 12 months, slowing down from last quarter due to concern over drought conditions, according the Federal Reserve Bank of Chicago. The value of "good" farmland increased 1% in the second quarter of 2012 compared to the first quarter of 2012, the smallest quarterly increase in two years. All District states posted year-over-year increases in farmland values and the largest year-over-year land value increase came from Iowa, with a 24% increase.

Crop Progress--An Uncertain Future

Marc Schober — Mon, 20 Aug 2012 16:04:00 GMT
Corn conditions remained unchanged from last week. Although conditions are less than optimal, commodity prices have already taken into consideration the current conditions and until we get more concrete harvest numbers, prices will remain stagnate.

Crop Progress: Slightly Worse Conditions at Harvest

Marc Schober — Mon, 27 Aug 2012 16:48:00 GMT
Corn and soybean conditions worsened slightly this week. Statistics coming from on the ground research from the Pro Farmer Crop Tour would suggest the USDA's estimate corn yield of 123.4 bushels per acre is a high estimate as crops are looking dismal across much of the Corn Belt.

Drought Supports High Grain Prices

Marc Schober — Tue, 04 Sep 2012 08:02:00 GMT
Grain prices remained elevated throughout the month as the USDA decreased the estimated 2012 U.S. average corn yield per acre to a dismal 123.4 bushels per acre. Farmers have been preparing for a very early harvest this year due to the accelerated maturity of corn in such a horrific drought. Crop insurance adjusters have also been busy working with farmers on crop claims.

Crop Progress: Conditions Unchanged as Harvest Begins

Marc Schober — Tue, 04 Sep 2012 16:25:00 GMT
Corn conditions remained stagnant this past week. Although farmers were hoping for rain during the summer months, now that harvest is upon us, rain will only act as a hurdle to getting into the fields and harvesting the crop.

WASDE: Grain Found Under the Rainbow

Marc Schober — Wed, 12 Sep 2012 10:48:00 GMT
The USDA lowered U.S. corn yields slightly, but surprised the market by dramatically increasing stocks. Logic would state that as yields decrease, stocks would follow. But the USDA defies reality and has found a magic bin of 160 million bushels of 2011/12 corn, resulting in an increase of new crop ending stocks by 83 million. U.S. Soybean production and yields dropped this month and U.S. wheat balance sheets are unchanged.

Crop Progress: Corn Conditions Improve as Harvest Progresses

Marc Schober — Mon, 17 Sep 2012 15:23:00 GMT
Corn conditions improved this week by 2% as corn harvest progressed well ahead of historical averages. Favorable harvest weather over the past week in the Corn Belt has put downward pressure on grain prices. As of September 16, 2012 USDA estimated corn conditions improved with 24% of the crop in good or excellent condition, yet a 27% decline from last year at the same time. Harvest is well underway with 26% of the entire U.S. corn crop already harvested compared to 15% last week and the five

Farmland Price Index Soars

Marc Schober — Mon, 24 Sep 2012 07:23:00 GMT
The Rural Mainstreet Index (RMI) remained below growth neutral for the third consecutive month, although the farmland price index jumped to its highest level since May. While farmer income is still strong, businesses linked to agriculture are experiencing retractions, according to bank CEOs.

Crop Progress: 39% of U.S. Corn Crop Harvested

Marc Schober — Mon, 24 Sep 2012 15:37:00 GMT
U.S. farmers harvested 13% of the entire U.S. corn crop last week during favorable harvest conditions in the Corn Belt. Illinois has already harvested over half of their corn crop as of this week. Soybean harvest also progressed quickly with 22% of the entire crop already in the bins. As of September 23, 2012 USDA estimated corn conditions remained unchanged with 24% of the crop in good or excellent condition, yet a 28% decline from last year at the same time. Harvest advanced week over week

Corn Stocks Fall Below One Billion Bushels

Marc Schober — Fri, 28 Sep 2012 09:50:00 GMT
Corn stocks bullishly dropped below one billion bushels in the USDA's release of the Quarterly Grain Stocks report today. Soybeans came in within the expected range and wheat had a slightly bullish tone as stocks fell below estimates. Overall, this report gave a jolt to corn and wheat to the upside, which is surprising as most analysts predicted a neutral tone.

Soybean Yields Drive Market Lower

Marc Schober — Mon, 01 Oct 2012 07:26:00 GMT
The U.S. fall harvest is well ahead of schedule and higher than expected soybean yield data has pushed grain prices lower throughout the month. Farmers are also busy preparing for the 2013 crop year by purchasing seed and other inputs early, while also strategizing the marketing of their 2013/14 grain. The U.S. drought has put pressure on seed corn producers. There shouldn't be a shortage of seed corn in 2013, but certain varieties will surely sell out earlier than anticipated.

Crop Progress: Over Half of U.S. Corn Harvested

Marc Schober — Mon, 01 Oct 2012 16:13:00 GMT
Harvesting of corn and soybeans continued to press on as over half of the U.S. corn has been harvested. We look forward to definite yield data to determine how hard the drought has affected yield performance.

Crop Progress: U.S. Corn Harvest 69% Complete

Marc Schober — Tue, 09 Oct 2012 17:54:00 GMT
The 2012 U.S. corn harvest might be done and in the books by the end of October. Farmers took advantage of early planting and dry weather to accelerate the 2012 harvest.

WASDE: Corn Stocks Decline to Lowest Level since 1995

Marc Schober — Thu, 11 Oct 2012 08:59:00 GMT
The USDA's October WASDE had some big changes, but was in line with analysts' expectations. Corn yields remained declined slightly, but 2011 stocks were cut drastically due to September’s stocks report and are now the lowest since 1995/96. Soybeans headed in a different direction as yields were increased by 2.5 bushels and with that came increases in almost every category except price. Prices estimates dropped for all three grains.

Crop Progress: Over Three Fourths of U.S. Corn Harvested

Marc Schober — Mon, 15 Oct 2012 15:41:00 GMT
Harvest progression for two key grains, corn and soybeans, are ahead of their five-year-averages. A combination of early planting and dry hot weather allowed farmers to get into their fields earlier this year.

Farmland Price Index Climbs 16%

Marc Schober — Mon, 22 Oct 2012 08:14:00 GMT
The Rural Mainstreet Index (RMI) increased to its highest level in four months. The farmland price index jumped 10.1 points and has now been above growth neutral for 33 straight months.

Crop Progress: Only 13% of U.S. Corn Crop Left to Be Harvested

Marc Schober — Mon, 22 Oct 2012 15:35:00 GMT
Favorable harvest weather across much of the Corn Belt has helped promote efficient harvest over the past week. To date in 2012, farmers have harvested 38% more corn than the five-year historical average. As of October 22, 2012 the U.S. has harvested 87% of the corn crop, compared to the five-year average of only 49%. 11 of the 18 primary corn producing states are currently at over 90% harvested. Corn prices increased by 3.3% over the past week ending at $7.61 per bushel and year-over-year

Crop Progress: Corn and Soybean Harvest Nearly Complete

Marc Schober — Wed, 31 Oct 2012 15:53:00 GMT
Harvest is almost complete and farmers are working the fields for next year's crop. We anticipate the upcoming WASDE for yield estimates to determine the impact of the drought.

Crop Progress: U.S. Harvest Wrapping Up

Marc Schober — Mon, 05 Nov 2012 15:59:00 GMT
The USDA released their Crop Progress report today and indicated harvest for corn and soybeans is almost complete. The WASDE report will be released on Friday and we look forward to yield and production estimates.

WASDE: Corn and Soybean Yields Increase

Marc Schober — Fri, 09 Nov 2012 09:42:00 GMT
The USDA's November WASDE held few surprises, but the increase in corn production was not expected. Increased rainfall helped propel soybean production and supplies. Corn, soybeans, and wheat prices are expected to decrease according to this report.

Crop Progress: An Early End to Harvest

Marc Schober — Tue, 13 Nov 2012 16:37:00 GMT
The USDA released their Crop Progress report today indicating corn harvest is complete with soybean harvest close behind. This marks the end of our coverage for the 2012 Crop Progress. For continued coverage visit http://is.gd/0Djze8

Midwest Farmland Values Rise 13% Despite Drought

Marc Schober — Mon, 19 Nov 2012 07:57:00 GMT
Farmland values rose 13% over the last twelve months in the Midwest despite the worst drought in over 50 years, according to the Federal Reserve Bank of Chicago. In the third quarter of 2012, farmland values rose 5% in the District, compared to 1% in the previous quarter. Demand for farmland continues to remain strong as farmers are expected to set a record net income in 2012, due to high commodity prices and crop insurance payments.

Farmland Price Index Jumps 17%

Marc Schober — Tue, 20 Nov 2012 09:28:00 GMT
The Rural Mainstreet Index (RMI) increased for the third consecutive month indicating the rural economy is showing signs of improvement. The farmland price index posted its highest one month increase since the initiation of the survey in 2005.

The State of U.S. Farmland Values

Marc Schober — Mon, 26 Nov 2012 08:12:00 GMT
High commodity prices and net farm income have driven U.S. farmland values to record highs. The Federal Reserve Bank of Chicago reported that farmland values rose 13% over the last twelve months. Strong demand for farmland from farmers and investors has led to some irrational prices, including a $21,900 per acre sale in Sioux County, Iowa.

WASDE: Minimal Changes to Balance Sheet

Marc Schober — Tue, 11 Dec 2012 09:11:00 GMT
The USDA's December WASDE held few surprises as market participants look past the WASDE and into the holiday season. Corn and soybean balance sheets showed little change. Global wheat supplies were increased due to a jump in production. Prices were lowered for all three grains.

Rural Mainstreet Index Reaches Five-Year High

Marc Schober — Wed, 26 Dec 2012 07:38:00 GMT
The Rural Mainstreet Index (RMI) increased for the fourth consecutive month and posted its highest level since June of 2007. The farmland price index remains above growth neutral for the 35th consecutive month.

Grain Prices Lower on Higher Production in 2013

Marc Schober — Thu, 03 Jan 2013 07:36:00 GMT
As 2012 comes to an end, farmers are strategizing planting for next year, while politicians are trying to avoid falling off the fiscal cliff. Most of the U.S. Corn Belt has a solid frost which is starting to kill soil pests, fungus, and other crop nuisances which gives U.S. farmers an advantage unseen in South America. Grain prices suffered in December due to expectations for higher grain production worldwide in 2013 and budgetary concerns in Washington.

Watch Out for the Corn Cliff

Marc Schober — Thu, 10 Jan 2013 07:07:00 GMT
Politicians in Washington were able to avoid going off the fiscal cliff at the last moment, but in 2013, farmers are staring at a new cliff of their own. Expectations for record corn production in South America and the U.S. in 2013 may send grain prices, and farmers, off a cliff. The fiscal cliff had negative long-term implications, but the good news is, the corn cliff may be temporary and result in a race back to the top for prices.

WASDE: Domestic Demand for Corn Increases

Marc Schober — Fri, 11 Jan 2013 12:51:00 GMT
The USDA's January WASDE and Grain Stocks report was released today at its new time, 11:00AM CST. The highlighted stats included increases in corn yield, offset by an even larger increase in domestic use of corn. Corn, soybeans, and wheat all had a decrease in stocks stored in all positions.

Drought Has Done Little to Stop Rural Growth

Marc Schober — Tue, 22 Jan 2013 07:51:00 GMT
The Rural Mainstreet Index (RMI) remains above growth neutral for the fourth straight month. The farmland price index decreased in January but remains above growth neutral for a record 36th consecutive month.

WASDE: Brazil to Produce Record Soybean Crop

Marc Schober — Fri, 08 Feb 2013 12:17:00 GMT
The key player in today's WASDE report is South America, specifically Brazil. Domestic corn exports continue to decrease due to stiff competition from Brazil. As weather improves, Brazil is estimated to produce a record soybean crop of 83.5 million tons, surpassing the U.S. as the world's largest producer of soybeans.

Record Farm Income and Production Expected in 2013

Marc Schober — Tue, 12 Feb 2013 07:47:00 GMT
U.S. net farm income is expected to set a new record high in 2013, driven by a record corn crop and high commodity prices, according to the USDA. Crop reserves are anticipated to rise in 2013 after supplies were depleted from the worst drought in over 55 years in 2012.

Fed Says Midwest Farmland Increased 16% in 2012

Marc Schober — Tue, 19 Feb 2013 07:28:00 GMT
Midwestern farmland values increased 16% in 2012, the third largest gain in the last 35 years, according a survey from the Federal Reserve Bank of Chicago. Despite the worst drought in over 55 years, high commodity prices and record farm incomes drove demand for agricultural land. Survey respondents expect the momentum to continue the next twelve months based on the record income expectations for 2013.

Farmland Values and Farmer Income Continue to Rise

Marc Schober — Mon, 04 Mar 2013 09:47:00 GMT
Temperatures in the Corn Belt have been steadily increasing throughout February and improved amounts of precipitation have been reported across much of the Midwest to help moderate drought conditions. Subsurface soil moisture levels are still dangerously low though as 57% of the U.S. is still in a moderate to worse drought. Farmers are hoping for abundant spring rainfall and for drainage tile lines to start flowing again; a sign of increased moisture deep beneath the surface.

WASDE: Relatively Unchanged Balance Sheets

Marc Schober — Fri, 08 Mar 2013 12:51:00 GMT
March's WASDE was lackluster, at best. The USDA continues to beg the question of credibility; an example being their estimate of U.S. soybean ending stocks remaining unchanged even as February's exports exceed year over year numbers. U.S. corn exports continue to suffer as the USDA lowered domestic exports by 125 million bushels the last two months.

As Farmer Incomes Rise, Rents Follow

Marc Schober — Mon, 25 Mar 2013 08:09:00 GMT
Farmer income is expected to reach a record high in 2013 and bankers indicated in March that cash rents will increase by over nine percent in 2013, according to the Rural Mainstreet Survey. Farmland values continue to appreciate although respondents are concerned about recent strong growth.

Corn Stocks Well Above Analyst Expectations

Marc Schober — Thu, 28 Mar 2013 13:27:00 GMT
Corn, soybean, and wheat prices all substantially decreased due to above average estimated quarterly stocks in today's USDA reports. The biggest surprise came with corn stocks of 5.40 billion bushels, 400 million bushels above analyst's average estimate. The Prospective Plantings Report held no surprises but continues to forecast a record corn crop.

WASDE: Lower than Expected Stocks for Corn and Soybeans

Marc Schober — Wed, 10 Apr 2013 12:59:00 GMT
Domestic corn ending stocks increased by 125 million bushels in the April WASDE, which was a reflection of the March 28 Grain Stocks Report, although the increase was 50 million bushels below pre-report estimates. The same story can be said for soybeans as the USDA has ending stocks unchanged for a second straight month; pre-report estimates had an average 9.6% increase.

Crop Progress: Slow Start to the Planting Season

Marc Schober — Mon, 15 Apr 2013 16:04:00 GMT
Crop insurance's earliest planting dates, for corn, usually ignites a stamped of planters into the fields, but heavy rains and snow accumulation across the Corn Belt has left farmers on the sideline. As of April 14, 2013, only 2% of the U.S. corn crop has been planted. This would not come as a surprise as planting season has just begun; but last year at this time the U.S. had already planted 16% of the corn crop.

Renewable Fuel Mandate Complications

Marc Schober — Thu, 18 Apr 2013 08:28:00 GMT
Renewable fuels may be changing drastically in the next 12 to 24 months due to the threat of mandated supply outpacing sluggish renewable fuel usage. The Renewable Fuel Standard (RFS) Program was first developed as part of the Energy Policy Act of 2005 and later updated by the Environmental Protection Agency (EPA) in 2007. Achieving energy independence as a county is the goal of the RFS, although set mandates are already causing concern among agriculture and biofuel producers.

Farmers are the Driving Force Behind Rural Growth

Marc Schober — Mon, 22 Apr 2013 08:44:00 GMT
Rural america continues to be a bright spot in an ever dimming economic environment as the Rural Mainstreet Index (RMI) and farmland price index posted above growth neutral readings. Farmers are the driving force behind the growth as 4 out of every 5 sales transactions are purchased by farmers.

Crop Progress: Drier Weather Needed in the Corn Belt

Marc Schober — Mon, 22 Apr 2013 16:19:00 GMT
Weather in the major corn producing states remains wet and only 4% of the corn crop has been planted as of April 22, 2013. This compares to 26% planted last year at this time and the five year average of 16%. Nebraska and Iowa have yet to plant 1% of their corn crop.

Crop Progress: Only 5% of Corn Crop Planted

Marc Schober — Mon, 29 Apr 2013 16:25:00 GMT
Corn, soybean, and wheat prices increased by double digits today due to the cold weather preventing farmers from planting. Planting delays may thwart estimates of the U.S. producing in 2013 the largest corn crop on record.

Soggy Weather Delays 2013 Planting

Marc Schober — Thu, 02 May 2013 09:02:00 GMT
Extremely wet weather across the entire Corn Belt has led farmers to anxiously wait until their fields are dry to complete spring field work and planting. Increased moisture has affected more than just planting; prices of corn skyrocketed at the end of April due to the delayed planting of what is suppose to be one of the largest crops planted in over 75 years. Water levels in key transportation rivers are alarmingly high and have caused the Coast Guard to temporarily close large sections on the

Crop Progress: Planting Moving Along Slowly

Marc Schober — Mon, 06 May 2013 15:51:00 GMT
Planting delays continue throughout the Corn Belt but improved weather over the next week is giving hope to a drenched region. If wet weather persists, there is cause for alarm as yields start to drop considerably as corn is planted after April.

WASDE: Initial Report on 2013/14 Crops

Marc Schober — Fri, 10 May 2013 14:02:00 GMT
The May WASDE marks the first report estimating the 2013/14 crops and usually packs a punch of surprises. 2013/14 corn yield was lowered from February's early projections, as expected, but was offset by increased planted acres. Soybean balance sheets for 2012/13 remain unchanged. Wheat decreased in almost every aspect of its balance sheet from year to year.

Crop Progress: 37% Lag in Corn Planting

Marc Schober — Mon, 13 May 2013 15:44:00 GMT
Wet and cold weather persisted throughout the Corn Belt last week, although some farmers have been able to plant due to improving, regional, conditions. Anxious farmers sowed 16% of the 2013 corn crop last week alone. The weather forecast moving forward is warmer with a chance of a storm system moving into the Corn Belt later this week.

Farmland Values Increased 4% in First Quarter of 2013

Marc Schober — Mon, 20 May 2013 13:29:00 GMT
The value of "good" farmland increased 4% in the first quarter of 2013 compared to the fourth quarter of 2012, and year over year values have increased by 15%. Of the five states included in the 7th District, four states posted double digit year over year increases, masking Wisconsin's 3% decrease.

Crop Progress: Corn Acres Planted Jumps to 71%

Marc Schober — Mon, 20 May 2013 16:09:00 GMT
Improved weather opened up a window for farmers to plant the 2013 crop, resulting in a 43% increase in week to week corn acres planted. Farmers in the Corn Belt will see increased moisture at the beginning of this week, favoring developed crops but slowing down planting the remainder of the crop.

Farmland Values Increase by 20% in Plains States

Marc Schober — Tue, 21 May 2013 07:23:00 GMT
For the third straight year, farmland prices in the Tenth Federal Reserve District have increased by double digits year over year, a record for this survey. Farmer income also remained elevated, but bankers are concerned going forward as low crop prices and higher input costs may curb farmer income.

Rural Economy Continues to Grow

Marc Schober — Wed, 22 May 2013 12:28:00 GMT
The rural economy is still the bright spot as the Rural Mainstreet Index (RMI) strengthened to its highest level since December 2012. Strong farm income and high commodity prices have driven the farmland price index above growth neutral for the 42nd consecutive month.

Crop Progress: 86% of Corn Acres Planted

Marc Schober — Tue, 28 May 2013 16:43:00 GMT
Planting progress in the top 18 corn producing states progressed by 15% this past week and is only 4% behind the five year average. Farmers have been working tirelessly to plant the 2013 crop after heavy rains had prevented them from getting into fields for most of April and May.

Wet Weather Causing Havoc for Farmers

Marc Schober — Mon, 03 Jun 2013 07:58:00 GMT
Extremely wet and abnormally cold weather has led to farmers now pondering if planting a corn crop in 2013 economically makes sense. Planting corn, farmers would experience significant yield loss due to such a late plant date and a short time to fully mature in the fields. Crop insurance agencies offer prevented planting coverage which allows farmers to submit an insurance claim due to poor planting weather and the inability to plant their crop in the allotted time frame crop insurance agencies

Crop Progress: Weather Slows Corn Planting in Late May

Marc Schober — Mon, 03 Jun 2013 16:39:00 GMT
Planting progress in the top 18 corn producing states progressed by a leisurely 5% as wet weather continued to prevent farmers from finishing the planting of the 2013 corn crop. If further delays continue, soybeans and preventative planting will take the place of corn acres.

Crop Progress: Farmers Fight the Wet Weather to Plant 95% of the Corn Crop

Marc Schober — Mon, 10 Jun 2013 16:45:00 GMT
Planting progress in the top 18 corn producing states progressed by 4% this past week and is only 3% behind the five year average of 98%. Farmers have done tremendous work catching up to the average due to the setback from heavy rains the last few months. With almost the entire corn crop planted at 95% and improved weather forecasts for this upcoming week, corn planting looks to be completely finished within the next couple of weeks.

WASDE: World to Offset U.S. Corn Loss

Marc Schober — Wed, 12 Jun 2013 14:21:00 GMT
The June WASDE offered minor changes to the May WASDE report. Corn prices have taken the biggest hit this month, as major rainfalls have stalled planting and put a strain on farmers. We expect reductions to the 2013/14 corn balance as the worse planting season in over 20 years is reflected by the USDA. Increased competition from Brazil has caused the U.S. market to decrease its soybean exports. A decrease in wheat production have increased the price for wheat.

The Importance of Bees in Agriculture

Marc Schober — Mon, 17 Jun 2013 08:07:00 GMT
Bees are one of the most helpful little creatures on our planet, although more commonly seen as a nuisance. In the United States, “Close to 100 crop species…rely to some degree on pollination services provided by this one species—collectively, these crops make up approximately 1/3 of the U. S. diet, including the majority of high-value crops that contribute to healthy diets,” states May Berenbaum, professor at the University of Illinois.

Crop Progress: Corn Planting Complete and Conditions Improving

Marc Schober — Mon, 17 Jun 2013 16:35:00 GMT
Corn planting in the top 18 corn producing states finished over the past week as farmers now look to complete soybean planting. A slow start to the planting season due to excessive rainfall will draw attention to crop conditions throughout the growing season.