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Wednesday, February 24, 2016

Savills | Motives of buyers and sellers of farmland remain diverse

Savills | Motives of buyers and sellers of farmland remain diverse: Farmers made up 50% of farmland sellers last year – the highest proportion in seven years. For some this may be due to low commodity prices and the short term outlook for UK agriculture, others and in particular those without successors will undoubtedly have been prompted by the chance to capitalise on high land values and retire.
Also reflecting a more cautious sentiment; data from our research team and published today in Market Survey: UK Agricultural Land 2016 shows, farmers made up the smallest proportion of buyers since 2003 – at 43% of all transactions. Meanwhile, non-farmers including lifestyle buyers, investors, and institutional/corporate buyers represented the biggest percentage of farmland buyers in the past 12 years.

Questions landowners should consider when renting farmland

Questions landowners should consider when renting farmland: Many landowners and farmers are considering renegotiating land rental rates in light of lower grain prices.� Dollar amounts are important, of course, but should not be the only consideration when negotiating rent.
Landowners may want to consider taking lower rent if the farmer is willing to do practices that improve the soil and the long-term productivity and value of your land. It is also worth considering offering a multi-year lease to the farmer that is willing to do more to improve your land. Other questions to consider include:

USDA to measure farmland rental rates

USDA to measure farmland rental rates: Beginning in February, the U.S. Department of Agriculture's National Agricultural Statistics Service will contact Wisconsin farmers and ranchers to gather land rental rate information for the Cash Rents and Leases survey.

The results of this survey will serve as a valuable decision-making tool for farmers, ranchers and other landowners and will help shape negotiations for 2017 rental agreements.

NASS will publish average cash rental rates at national, state and county levels for non-irrigated cropland, irrigated cropland, and pastureland on September 9, 2016.

"This brief survey is our only source of county cash rental rates," said NASS' Wisconsin Field Office State

Statistician Greg Bussler. "Since the last rental rate survey was conducted two years ago, it is critical for producers to

Farmland prices stabilizing: But why not in Calif.?

Farmland prices stabilizing: But why not in Calif.?: After a precipitous fall in recent years, farmland values have started stabilizing in parts of the Midwest and are even showing strength in Washington state.

But out in California, where prices for land had never stopped rising until recently, a decline in high-value crops, such as nuts, is causing the market to cool.

Dow futures fall 150 points; oil sheds 3%

Dow futures fall 150 points; oil sheds 3%: U.S. stock index futures indicated a lower open on Wednesday as global markets slumped once again on the back of oil price declines.

Dow futures fell 150 points, while S&P and Nasdaq futures also pointed to a sharply lower open, as U.S. crude prices dropped 3 percent.

Wake Up Call Allendale Advisory Center

Wake Up Call Allendale Advisory Center: Grain markets are lower as they test support of a narrow trading range. Outside markets are creating headwinds as the US Dollar is higher and crude oil is lower.

Tomorrow morning USDA will provide its acreage outlook for 2016/17 crop year. Trader's average estimate, gathered by Bloomberg, is suggesting an increase of 1.7 million acres in planted corn and about a 700,000 increase in soybean planted acres. Friday morning we will get the supply and demand for the major crops. Trade average corn ending stocks is 1.891 billion bushel, soybeans 516 million bushel and wheat 1.005 billion bushel.

First notice day for delivery against the March grain and oilseed contracts is Monday February 29.