AgDay Daily Recap - August 19, 2011

August 19, 2011 04:44 AM
 

TODAY ON AGDAY:
AUGUST 19, 2011

FARMLAND VALUES:
GOOD MORNING. WHILE THE DOW PLUNGED 400 POINTS THURSDAY, FARMLAND VALUES CONTINUE TO RISE. NEW DATA FROM THE FEDERAL RESERVE BANK SHOWS THERE'S NO LET-UP IN THE DESIRE FOR GOOD FARMLAND. WE HAVE REPORTS FROM TWO REGIONS OF THE COUNTRY AND THEY SHARE A COMMON THEME - DOUBLE DIGIT GROWTH IN VALUE.
WE'LL BEGIN IN THE CORNBELT. THE FEDERAL RESERVE BANK IN CHICAGO IS NOW REPORTING THE HIGHEST YEAR-OVER-YEAR INCREASE OF FARMLAND VALUES SINCE THE 1970'S. THEY SURGED 17% FROM THE SAME PERIOD LAST YEAR. THE DISTRICT IS MADE-UP OF ILLINOIS, INDIANA, IOWA, MICHIGAN AND WISCONSIN. AND FOR THE QUARTER, THE VALUE OF "GOOD" FARM LAND ROSE FOUR PERCENT FROM THE PREVIOUS THREE MONTH PERIOD. THIS REPORT IS BASED ON A SURVEY OF MORE THAN 200 AG BANKERS IN THE DISTRICT. A THIRD OF THOSE BANKERS EXPECT FARMLAND VALUES TO MOVE EVEN HIGHER.

KC REPORT:
MEANWHILE IN THE CENTRAL AND SOUTHERN PLAINS, FARMLAND VALUES ALSO SURGED. THIS DISTRICT STRETCHES FROM WESTERN MISSOURI TO MONTANA. THE FEDERAL RESERVE IN KANSAS CITY SAYS IN YEAR TO YEAR COMPARISONS, OVERALL FARMLAND VALUES ARE UP 20% IN YEAR-TO-YEAR COMPARISONS. FOR THE QUARTER, IRRIGATED CROP LAND WAS UP JUST ABOUT FOUR PERCENT FROM THE FIRST QUARTER. IN NEBRASKA, CROPLAND VALUES WERE 30-PERCENT HIGHER THAN A YEAR EARLIER.

LOWER FARM INCOMES:
HOWEVER, IT'S NOT ALL POSITIVE NEWS FROM THAT DISTRICT. BANKERS SAY FARM INCOMES DROPPED, ESPECIALLY IN AREAS AFFECTED BY THE DROUGHT - LIKE KANSAS AND OKLAHOMA. THE KANSAS CITY FED OFFICE SAYS THE SEVERE DROUGHT IN THE SOUTHERN PLAINS HIT ON SEVERAL FRONTS. IT LOWERED WHEAT YIELDS, PROMPTED RANCHERS TO LIQUIDATE COW HERDS AND INCREASED CATTLE FEEDING COSTS.

OBAMA RURAL TOUR:
THE ECONOMY IN RURAL AMERICA WAS IN THE FOREFRONT THIS WEEK AS PRESIDENT OBAMA TOOK HIS MESSAGE ACROSS THE MIDWEST. THE THREE DAY TRIP TOOK HIM TO MINNESOTA, IOWA AND ILLINOIS. ONE OF HIS LAST STOPS WAS THE HEADQUARTERS OF WYFFELS HYBRID SEEDS IN ATKINSON, ILLINOIS. AGWEB EDITOR GREG VINCENT HAS OUR COVERAGE.

WYFFELS OR WAFFELS:
WHILE THE NAME "WYFFELS" IS FAMILIAR TO MANY FARMERS IN THE MIDWEST, IT'S CERTAINLY NOT A COMMON NAME. AND THE PRESIDENT HAD A LITTLE PROBLEM WITH IT. BILL WYFFELS TOLD US LATER THEY JUST "LAUGHED IT OFF", AND WE'RE GLAD TO BE ABLE TO HOST THE PRESIDENT.

CROP TOUR:
IN OTHER NEWS, IF YOU LIVE IN THE CORNBELT, AND YOU SEE A BUNCH OF FOLKS WALKING INTO YOUR FIELDS NEXT WEEK, DON'T BE ALARMED.  THERE'S A GOOD CHANCE THEY ARE FIELD SCOUTS TAKING PART IN THE 2011 PRO FARMER MIDWEST CROP TOUR. ABOUT 100 SCOUTS WILL GATHER THIS WEEKEND TO GET THEIR MARCHING ORDERS. THEN, OVER A FOUR DAY PERIOD THEY'LL SCOUR CORN AND SOYBEAN FIELDS IN SEVEN STATES. WITH USDA RECENTLY LOWERING ITS FORECAST OF THIS YEARS CORN CROP, THE INDUSTRY WILL BE WATCHING THIS TOUR CLOSELY. THE TOUR WRAPS UP THURSDAY IN MINNESOTA, WHEN OUR PARTNERS AT PRO FARMER WILL RELEASE ITS FORECAST FOR THIS YEAR. WE'LL HAVE DAILY COVERAGE THROUGH-OUT THE WEEK ON AGDAY AND ON-LINE.

LUNCH AND LEARN:
THANKS MIKE. IF YOU'RE HEADED TO THE FARM PROGRESS SHOW LATER THIS MONTH, YOU HAVE AN OPPORTUNITY TO GET A FREE LUNCH, ON US. ONCE AGAIN, AGDAY IS HOSTING OUR VERY POPULAR "LUNCH AND LEARN" PROGRAM AT THE FARM PROGRESS SHOW. THIS YEAR, IT'S IN DECATUR, ILLINOIS. OUR LUNCH IS SET FOR TUESDAY AUGUST 30TH. WE'LL HAVE SEVERAL OF OUR POPULAR MARKETING EXPERTS ON-HAND. PLUS, YOU GET LUNCH AND A NICE PLACE TO SIT-DOWN. BUT DON'T WAIT - SEATING IS LIMITED. RESERVATIONS ARE ON A FIRST-COME, FIRST SERVE BASIS. SO PLEASE EMAIL US. SEND IT TO INBOX@AGDAY.COM. AND YES, IF YOU DON'T HAVE EMAIL, YOU CAN CALL US AT 800-792-4329....THAT'S 800-79-AGDAY. WE'LL NEED YOUR NAME AND NUMBER IN YOUR PARTY. FOLKS FROM OUR OFFICE WILL CONTACT YOU TO CONFIRM.

ANALYSIS:
CHIP NELLINGER

IN THE COUNTRY; FORT BUFORD:
IT'S BEEN SAID THAT "DEAD MEN TELL NO TALES." BUT AT ONE HISTORIC CEMETERY IN NORTH DAKOTA, THE HEADSTONE SAYS PLENTY. THE GRAVE MARKERS ARE EXPLICIT, WHEN COMPARED TO FUNERAL STANDARDS TODAY. OUR BUDDY CLIFF NAYLOR FROM KFYR-TV REPORTS ON WHY MILITARY BURIALS OVER 100 YEARS AGO LEFT LITTLE TO THE IMAGINATION. THANKS CLIFF. WHEN WE COMEBACK, FOOD AND YOUR FAMILY LOOKS AT "PORTION SIZE" IN THOSE FROZEN ENTREES.

SERVING SIZE:
IN FOOD AND YOUR FAMILY DO YOU EVER LOOK AT THE 'SERVING SIZE' ON FOOD PACKAGING AND SAY "YEA, RIGHT". NEW RESEARCH FROM A FOOD MARKETING GROUP SEEMS TO BACK THAT UP. THE NPD GROUP SAYS THERE IS A GROWING DISCREPANCY BETWEEN SERVING SIZES LISTED ON FOOD LABELS AND WHAT CONSUMERS ARE ACTUALLY EATING. FROZEN-READYTO-EAT MEALS ARE A COMMON PURCHASE AT GROCERY STORES THESE DAYS. CONSUMERS LIKE THE CONVENIENCE. A RECENT STUDY FINDS THAT A THIRD OF THOSE MEALS INTENDED FOR FAMILY-USE - MEANING FOUR PEOPLE - IS ACTUALLY EATEN BY ONLY ONE OR TWO INDIVIDUALS. AND WHEN THE PACKAGE SAYS 2-3 SERVINGS, IT'S USUALLY CONSUMED BY JUST ONE PERSON. NPD SAYS THERE IS A DISCONNECT BETWEEN THE STATED SERVING SIZE ON A FROZEN MEAL PACKAGE AND WHAT AN INDIVIDUAL IS CONSUMING. ALTHOUGH MANY CONSUMERS DISREGARD THE SERVINGS SIZE INDICATED ON THE FROZEN FOOD PACKAGE, THEY ARE CONCERNED WITH PORTION SIZES FOR A VARIETY OF REASONS. WE'D BE INTERESTED IN YOUR TAKE ON FOOD PACKAGING. ARE THE SERVING SIZES TOO SMALL, OR ARE WE SERVING-UP TOO MUCH. SEND YOUR COMMENTS TO THE AGDAY INBOX.

 

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