AgDay Daily Recap - December 16, 2010

December 16, 2010 04:21 AM
 

TODAY ON AGDAY:
DECEMBER 16, 2010

IOWA STATE LAND VALUES:
THE VALUE OF GOOD FARMLAND CONTINUES TO RISE IN THE HEART OF THE CORNBELT... AND ONE OF THE LEADING EXPERTS IN THAT FIELD DOESN'T SEEM TOO CONCERNED ABOUT THE CHANCE OF THE BUBBLE BURSTING. THE ANNUAL LAND VALUE SURVEY CONDUCTED BY IOWA STATE UNIVERSITY EXTENSION WAS RELEASED ON WEDNESDAY. IT SHOWS THE AVERAGE VALUE OF AN ACRE OF IOWA FARMLAND INCREASED NEARLY 16% FROM A YEAR AGO. BECAUSE OF THE QUALITY OF THE LAND, IOWA IS OFTEN USED AS A BENCHMARK TO GAUGE FARMLAND THROUGH-OUT THE CORNBELT. THE STATEWIDE AVERAGE PRICE HIT $5064. THAT'S NEARLY 700 DOLLARS MORE AN ACRE THAN 2009. IOWA STATE FOUND THE HIGHEST LAND VALUES IN O'BRIEN COUNTY - IN THE NORTHWEST DISTRICT OF THE STATE. THE AVERAGE PRICE PEGGED MORE THAN $7100 AN ACRE. ISU EXTENSION ECONOMIST MIKE DUFFY, WHO CONDUCTS THE SURVEY, SAYS FARMERS AND LANDOWNERS SHOULD BE PRUDENT, BUT - QUOTING HERE - "I DON'T THINK WE NEED TO BE OVERLY PESSIMISTIC THERE WILL BE A CRASH IN VALUES ANYTIME SOON".

ETHANOL TAX CREDITS:
LAND OWNERS ARE ONE STEP CLOSER TO KNOWING 2011'S ESTATE TAX RATES. THE SENATE VOTED 81 TO 19 IN FAVOR OF THE NEAR ONE TRILLION DOLLAR TAX PACKAGE. THE MEASURE NOW MOVES TO THE HOUSE. IN IT, A PROVISION TO RAISE THE ESTATE TAX EXEMPTION TO FIVE MILLION DOLLARS AND SET A RATE OF 35%. AND AN EXTENSION OF THE ETHANOL BLENDER'S AND BIO DIESEL TAX CREDITS. KNOWN AS VEE-TEK, THE DEAL KEEPS THE TAX CREDIT FOR BLENDING ETHANOL WITH GASOLINE AT ITS CURRENT LEVEL OF 45-CENTS A GALLON UNTIL THE END OF NEXT YEAR. ALSO INCLUDED IS A 54-CENT TARIFF ON IMPORTED ETHANOL AND A REINSTATEMENT OF THE BIODIESEL TAX CREDIT. IT EXPIRED AT THE BEGINNING OF THIS YEAR. THAT CREDIT WILL RETRO-ACTIVELY COVER ALL OF 2010 THRU THE END OF 2011. IOWA SENATOR CHUCK GRASSLEY IS A MAJOR SUPPORTTER OF THESE BIO-FUEL INCENTIVES. HE SAYS THOSE CALLING THEM "WASHINGTON PORK" ARE OUT OF LINE.

BROILER HOUSE RESEARCH:
IN LOUISIANA, A SET OF POULTRY DEMONSTRATION HOUSES WILL HELP GROWERS RAISE CHICKENS MORE EFFICIENTLY. IN THIS REPORT PROVIDED BY THE LSU AGCENTER, TOBIE BLANCHARD VISITED THE HOUSES TO LEARN MORE ABOUT THE RESEARCH TAKING PLACE IN THEM.  TOBIE SAYS LSU RESEARCHERS, POULTRY PRODUCERS AND POULTRY INTEGRATORS WILL BE PART OF A TEAM THAT DETERMINES WHAT EQUIPMENT AND TECHNIQUES THE RESEARCHERS WILL STUDY AT THE DEMONSTRATION HOUSES.

DEERE IN CHINA:
IN AGRIBUSINESS DEERE AND COMPANY SAYS IT PLANS TO BUILD A NEW FACTORY IN CHINA TO MANUFACTURE CONSTRUCTION EQUIPMENT FOR SALE IN CHINA AND FOR EXPORT TO OTHER MARKETS. THE NEW FACTORY WILL PRODUCE FOUR-WHEEL-DRIVE LOADERS AND EXCAVATORS. THE FACILITY WILL BE DEERE'S SIXTH MANUFACTURING LOCATION IN CHINA, TWO OF WHICH ARE JOINT VENTURES. CHINA IS CONSIDERED THE WORLD'S LARGEST AND FASTEST GROWING MARKET FOR CONSTRUCTION EQUIPMENT. COMPANY OFFICIALS SAY DEERE'S COMMITMENT TO DOING BUSINESS IN CHINA DATES BACK MORE THAN 30 YEARS.

SUGARBEETS:
WILL SUGARBEETS BECOME THE NEXT FEEDSTOCK FOR THE ETHANOL INDUSTRY? A NORTH DAKOTA ENERGY COMPANY THINKS SO. GREEN VISION GROUP HAS BEEN WORKING WITH NORTH DAKOTA STATE UNIVERSITY ON THE VIABILITY OF THAT CROP FOR ENERGY. THE COMPANY SAYS SUGARBEETS HAVE TWICE AS MUCH ETHANOL PRODUCTION PER ACRE COMPARED TO CORN. GVG SAYS THE GROSS RETURN PER ACRE IN NORTH DAKOTA IS $893. THAT COMPARES TO $386 FOR CORN. THE COMPANY SAYS IT'S IN THE BLUEPRINT STAGE TO BUILD 12 SUGARBEET PROCESSING FACILITIES IN THE RED RIVER VALLEY. THEY HOPE TO HAVE THE FIRST DEMONSTRATION PLANT ON LINE BY JANUARY 2012.

ANALYSIS:
GARY WILHELMI

IN THE COUNTRY; RURAL RETAILERS:
FOR RETAILERS A GOOD CHRISTMAS SEASON CAN MAKE OR BREAK THE BUSINESS. HOWEVER, IN TODAY'S ECONOMY, MANY SMALL RETAIL SHOPS IN BOTH URBAN AND RURAL SETTINGS ARE STRUGGLING. WHICH IS WHY STUDENTS FROM A MERCHANDISING CLASS AT THE UNIVERSITY OF KENTUCKY ARE HELPING RETAILERS IN ONE RURAL COMMUNITY BE RESILIENT AND SURVIVE. JEFF FRANKLIN FROM THE UNIVERISITY OF KENTUCKY REPORTS.

2011 FOOD TRENDS:
THE NATIONAL RESTAURANT ASSOCIATION HAS REVEALED ITS TOP TEN LIST OF HOTTEST MENU TRENDS FOR 2011. IT COMES FROM A "WHAT'S HOT" SURVEY OF MORE THAN 1,500 PROFESSIONAL CHEFS. WORKING FROM THE BOTTOM UP. NUMBER TEN: FARM OR ESTATE BRANDED INGREDIENTS. NUMBER 9: SIMPLE FOODS OR BACK TO BASICS. EIGHT: GLUTEN FREE FOODS OR FOODS THAT ARE ALLERGY CONSCIOUS. SEVEN: SUSTAINABLE SEAFOOD. SIX: FOODS THAT CONCENTRATE ON CHILD NUTRITION. ROUNDING OUT THE TOP FIVE: FOODS THAT ARE HYPER-LOCAL...MEANING RESTAUNTS HAVE THEIR OWN GARDENS OR BUTCHER THEIR OWN MEATS. NUMBER FOUR: BACK TO CHILDREN AND THIS TIME MAKING SURE THEY'RE NUTRITIONALLY BALANCED. THREE: SUSTAINABILITY. TWO: LOCALLY GROWN PRODUCE AND THE NUMBER ONE HOTTEST MENU TREND FOR 2011 IS LOCALLY SOURCED MEATS AND SEAFOOD.

CONTACT PAGE:
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