Fifth annual event attracts most attendees to date

The 2012 Land Investment Expo yielded a hearty crop of landowners, farmers, investors, financial services professionals and real estate agents who heard from local and national experts in the field.

More than 500 people attended the Feb. 20 event, where six keynote speakers and 20 tradeshow exhibitors joined the Peoples Company team for a day packed full learning, listening and networking at the Sheraton West Des Moines Hotel.

Dr. Mark Dotzour of the Real Estate Center at Texas A&M and Dr. Elwynn Talyor of Iowa State University were among the presenters who tackled questions related to dry weather conditions and the threat of a farmland bubble. Numerous breakout sessions rounded out the day’s agenda, which included updates on the corporate farming laws, advances in crop genetics, estate planning strategies, renewable energy, and land development opportunities.

For more information regarding upcoming events, such as this week’s Fourth Annual Charity Monopoly Tournament on Feb. 23, and the March 2 Builder/Developer Luncheon, follow Peoples Company on Facebook, Twitter and LinkedIn.

Factoring in hail insurance is another component of covering your assets

With eight days left in the marketing month of February, the average price of December 2012 Corn was $5.71 and the average price of November 2012 Soybeans was $12.44.

The average of the respective crop’s February futures prices will determine not only the guarantee for each level of revenue insurance protection, but will also be used to figure the cost of insurance for the 2012 crop year.

Final 2012 projected prices will be announced by Risk Management on or before March 5.

Trend Adjusted Yields are an option for the 2012 crop year, and will allow producers to adjust their databases on corn and soybeans in Iowa to levels of production reflected in today’s increased county average yields. In some cases, producers may find that specific guarantee levels may be reached by selecting the Trend Adjusted Yield Option and a lower level of coverage, which also decreases the cost of revenue insurance.

With the March 15 deadline for applying or making changes to multi-peril coverage, producers should contact their crop insurance agent to determine which level of protection is best suited for their farming operation.

Don’t forget to factor in hail insurance coverage into your plan so that you can protect the entire growing crop from weather related disasters.

- Terry Pauling

Diverse ag and farmland speakers slated for Jan. 20 Land Expo

The Fifth Annual Land Investment Expo is coming to the Sheraton West Des Moines Hotel, and the day’s agenda is brimming with everything from crop weather outlooks to investing in farmland overseas.

Peoples Company expects 500 to attend the Jan. 20 Land Expo, and this year removed “Iowa” from the title in order to reflect the regional, national and global scope of the all-day event, where Ken Root of the Agribusiness Report, Dr. Elwynn Taylor of Iowa State University and Vince Malanga of LaSalle Economics will kick off the day’s general sessions.

The impact of rising farmland prices, environmental regulations on land development, and the maximization of tax savings via the donation of farmland are among the topics scheduled to be covered before lunch, which will include a keynote address by Texas A&M’s Dr. Mark Dotzour, who will share his economic outlook for investors and business decision makers.

Responsible river management, owning land in your individual retirement account, a new era in farm leasing, and creating successful leadership transitions are slated for afternoon sessions, including a “Beating the Tax Man” presentation by IPE 1031 Exchange President Dave Brown, who will talk about income and capital gains tax strategies for real estate owners.

Terry Lutz of McClure Engineering Co., Creighton Cox of Des Moines Homebuilders Association, Chuck Becker of the Belin Law Firm, Sheila Kinman of the Community Foundation of Greater Des Moines, Angela Dethlefs-Trettin of the Iowa Council of Foundations, Lee Burras of Iowa State, Jim Knuth of Farm Credit Services of America, Chip Baltimore of Boone Bank & Trust, Lars Peterson of Transition Point Advisors, and Bill Hanigan and Stan Thompson, both of the Davis Brown Law Firm, are also scheduled to speak.

Presentations by Iowa State economist Mike Duffy, National Cattleman’s Beef Association President Bill Donald, Agri-Foot Value View Publisher Ned Schmidt, Peoples Company President Steve Bruere, and a number of Peoples Company agents will round out Friday’s roster.

Catered to individuals and institutions that are currently investing or interested in learning more about investing in land, the Land Expo brings together varying facets of the land industry and provides knowledge, ideas and networking opportunities for both land professionals and investors.

To learn more about the Fifth Annual Land Investment Expo, which will include an afternoon IPE 1031 Exchange-sponsored social and cocktail hour, visit www.LandInvestmentExpo.com and check out Peoples Company’s Facebook, LinkedIn and Twitter pages for updates on the day’s activities.

Land values and cash rents are hot topics in the Midwest as data on housing starts, home sales and unemployment rates are revealed

West Des Moines, Iowa – Reports of rising land values and a strong ag economy continued to appear in local, regional and national headlines this week as stocks surged amid the strongest rebound in the U.S. home building market in nearly two years.

Land values in Iowa skyrocketed 32.5 percent in November, compared with a year earlier, according to the annual Iowa State University farmland values survey. The climb to $6,708/acre marked the largest year-over-year increase in farmland values since 1973.

“The 2011 land value survey covers one of the most remarkable years in Iowa land value history,” said Iowa State University economics professor and Extension farm management specialist Mike Duffy, as reported by Agri News.

Ernie Goss of Creighton University found with his December reading of bank CEOs in 10 agriculturally dependent states that the Rural Mainstreet Index climbed to the highest level since June 2007. Record-high farmland price index and yearly cash rents of $191/acre were highlights of the Dec. 15 report.

November was good to U.S. builders, too, with housing starts increasing to an annual rate of 685,000 for the month, up 9.3 percent from October and 24.3 percent higher than a year earlier, CNNMoney reported.

The U.S. unemployment also fell in November, to 8.6 percent from 9 percent in October, as sales of existing homes shot up to a 4 percent to a 4.42 million annual pace, according to Bloomberg. That marked a 10-month high for purchases, though the news was tempered by the threat of more foreclosures. On Dec. 20, the Des Moines Business Record reported that Iowa’s unemployment rate dropped below 6 percent in November for the first time in more than two years.

Against this backdrop, where the burgeoning global land market and agriculture industries play vital roles, and talk of real estate bubbles and generational shifts in cropland ownership loom, Peoples Company is setting the stage for its Fifth Annual Land Investment Expo.

From the Sheraton West Des Monies Hotel, six leading land experts will share during the Jan. 20 event their perspectives on agricultural production, land development, rural economic development and farm policy, and how these issues and others relate to a global marketplace and real-world economic conditions.

More than 500 attendees are expected to attend the Expo, which is slated to include 10 breakout sessions, 20 trade show exhibitors, and a day’s worth of networking opportunities with real estate agents, financial services professionals and land investors from around the world.

For more information, go to www.landinvestmentexpo.

Rising farmland prices have spawned acres of media attention in recent months as Iowa growers harvested their crops

Strong demand for land and concerns over a potential real estate bubble have dominated agriculture news reports, which point to record-high average values across the Midwest.

Citing farmers, landowners, managers, real estate agents, academics and economists, the media outlets painted a picture of a burgeoning land industry, which, following a tough recession, has outpaced the broader economy in terms of growth as some land heirs traded family tradition for top-dollar prices at auction.

Sept. 15 – The Des Moines Register reported that high prices for corn and real estate, coupled with low interest rates, helped to increase the value Iowa farmland by an average of more than 30 percent in the past year. Based on a survey of real estate agents, The Land Institute said that on an acre of medium-quality farmland was valued at $6,477, which reflected the largest year-over-year increase since at least 1978. The story was picked up by the Associated Press and ran in major markets covered by the Washington Examiner and the Houston Chronicle. AG Professional also ran the article. Read more.

Nov. 11 – In light of what some economists believe could be the next real estate bubble, Kent Darr of the Des Moines Business Record asked three experts – a publisher, a professor and a land broker – to comment on the rising prices of farmland. Though potential cuts to both crop insurance and direct farm program payments could negatively affect land values, Peoples Company President Steve Bruere told the newspaper, the “prospects of a bubble seem bleak.” But how high will farmland prices go?

“If we knew $7 corn and $12 beans were sustainable, then the land sales of $10,000 an acre plus wouldn’t be cause for concern,” Bruere said. “I can’t predict what will change the prosperity that farmers are enjoying, but I’m convinced something will. … The question is how much higher values will go before we see a pullback.” Read more.

Nov. 15 – The Federal Reserve Bank of Chicago said Iowa cropland values increased in the third quarter by a “stunning 31 percent,” compared with the year-earlier period. High commodity prices and low interest rates have helped create a post-summer environment in which $10,000 per acre farmland sales are commonplace. Bruere was quoted in the Des Moines Register article: “Demand for land is still strong, even though more sales are coming onto the market.” Read more.

Nov. 15 – Josh Funk with the Associated Press wrote that land values have increased despite flooding and drought that farmers in the Midwest suffered through this year. Referring to a 25 percent increase in average farmland values in several states over the past year, as reported by the Federal Reserve Bank of Kansas City, Mo., Funk wrote that low interest rates are also bolstering a healthy farm economy. He said the year-over-year increase was the biggest since 1980. Read more.

Nov. 19 – An article by veteran agriculture reporter Dan Piller revealed that despite the rising farmland prices, and threat of a bubble, the number of land sales continues to increase. The author pointed to a Nov. 17 Peoples Company-brokered land auction in Ankeny, during which Eric Bidwell bid $11,000 per acre for 43 acres located north of the city.

“My gut feeling is that farmland prices are too high. But at the same time, with corn prices where they are now, land prices still might go higher,” said Bruere, noting that “adjoining farmers are still outbidding the investors.” Bidwell, who plans to farm the tract, told the Register that “agriculture land is still strong” despite falling prices on commercial development land. Read more.

Nov. 21 – PJ Huffstutter, a former Los Angeles Times reporter who now covers agriculture for Reuters, wrote an article about how the demands associated with operating a farm have led some landowners to break with tradition as investor interest, bidding wars and estate sales push up cropland prices. “I think dad would be fine with us selling the land,” said 60-year-old Diane Guerrttman, whose family’s 154 acres of Iowa farmland brought a winning bid of $1.2 million at auction. Read more.