Peoples Company continued on with a plan to move beyond its home state of Iowa, recently adding Illinois to the list of Midwest states in which the land brokerage is licensed to sell real estate.

Headed by Steve Bruere, the growing land company’s owner and president, Peoples Company added the Prairie State as he continues looking for qualified land brokers in Iowa, Missouri and Minnesota – and will soon enter both Nebraska and Montana.

“We’re are actively seeking qualified real estate sales professionals to partner with us in uncovering land brokerage opportunities in other markets in 2012,” Bruere said. “The new license will allow us to give even more exposure to our clients in Iowa and around the Midwest.”

To discuss Peoples Company’s expansion plans, or to learn more about joining the land brokerage, call Bruere at (515) 222-1347 or email him at steve@peoplescompany.com. More information on employment opportunities may be found by clicking here.

In the last the few years, the nation and our local market has seen a lot of developments go back to the bank, and there was ample supply for builders to pick up very affordable lots.

Builders have been able to construct entry-level housing, and first-time homebuyers have gotten into these homes with low interest rates and crazy low payments!

Condos and townhome projects have not been as hot the past few years, as more first time home buyers have been leaning towards these affordable single-family new construction homes.  Meanwhile, entry level single family resale sellers have had to lower their pricing to compete in the marketplace.

In the Des Moines Metro market, and many metropolitan cities around the nation, most local banks have chewed their way through the lots they had to take back, and there is no longer a surplus in affordable lots in the area. Future development land prices have started to creep up, and costs to develop raw land has also been on the rise.

What does this mean to future home pricing?

Well, builders are starting to pay higher prices on lots, and we are only speculating that these lot prices will continue to rise in the next year or two. So entry-level single-family housing has become less affordable.

At Peoples Company, we are constantly watching the building permits being pulled, new projects going through planning and zoning meetings, and housing statistics through the Des Moines Multiple Listing Service. With all of this information at our fingertips, it’s easy to see that home prices should continue rising as builders have to keep raising their prices due to higher land costs.

This will also help resale sellers to raise their prices and compete! Also, first-time homebuyers may start having more interest in the townhome projects again, as entry level prices on single-family homes gets higher and higher.

All in all, a rise in interest rates combined with a lack of lot inventories, increases in development costs, and more regulation will make new projects more expensive. This will hopefully lead to price appreciation in re-sales, and more demand for townhome and condo units for first-time homebuyers.

- Kalen Eastwood, Realtor, Peoples Company

Now that planting is well underway, with many acres of early-planted corn emerging, we turn our attention to monitoring the crops’ health throughout the growing season. Thunderstorms can become severe in a matter of minutes, and when those storms include significant updrafts, the result can be damaging hail.

Producers who elect to purchase crop-hail coverage can protect their income from loss due to hail. Coverage is available at various levels of deductibles and various levels of coverage, therefore the key is to determining total risk and purchasing adequate insurance that will cover expenses. It also allows for enough resources to put a crop in the ground the following year.

If your crop does suffer a loss, such preventive planting, replant or weather-related losses – and including hail damage – producers who carry multi-peril crop insurance and/or crop-hail insurance are reminded to contact their crop insurance agent as soon as the damage is known.

Your agent will help establish a potential claim, which will be sent to the insurance provider’s office. The insurance provider takes it from there.

Producers are also reminded to contact their crop insurance agent to report their 2012 planted acreage as soon as planting is completed. This process establishes each unit’s actual guarantee, and helps the producer follow through with their marketing plan.

To facilitate the standardization and sharing of information between multiple agencies, such as FSA and Crop Insurance providers, crop acreage reports are now required to be reported on a Common Land Unit basis. In 2012, crop insurance providers are required to collect about 60 percent of the crop reports on a CLU basis. Producers are therefore encouraged to keep accurate records and report the number of acres of each crop planted in each field.

- Terry Pauling

Iowa gold

Buyers and sellers of land are keeping a close eye on the efforts of Midwest farm producers as warmer-than-normal weather this past month encouraged some growers to dig in early.

Corn growers alone are expected to plant nearly 100 million acres of corn in the United States this year, and the springtime tilling of rich black soil may produce record harvests in late 2012.

Big yields can lead to signed leases, cash rents, a steady stream of revenue, and return on investment. All good things for land owners.

Some, however, are looking beyond farm earnings related to soil productivity or development potential, to a place where owning a chunk of God’s green earth becomes more important than producer prices, fluctuating market conditions or agricultural breakthroughs.

“Farmland is on fire,” wrote Mark Dotzour, chief economist and director of research with the Real Estate Center at Texas A&M University, in his aptly named “Talking Dirt” blog post on April 5. “Since Federal Reserve monetary policy has just destroyed any opportunity for savers, investors are searching for other ‘alternative investments.’ In my mind, cropland is a viable alternative to owning gold. If the United States ever collapses into hyperinflation, food will retain its intrinsic value similar to gold.”

Billionaire investor Warren Buffett wrote in a February column for Fortune magazine that the inherent value of land. The Omaha native alluded to how the ability to produce precious commodities such as wheat and grain could become the gold standard of future generations.

“A century from now the 400 million acres of farmland will have produced staggering amounts of corn, wheat, cotton, and other crops – and will continue to produce that valuable bounty, whatever the currency may be.”

America’s fascination with with acquiring and owning farmland was well summarized in a line from the 2000 Oscar-nominated film “Oh Brother, Where Art Thou?” which follows the exploits of three escaped convicts on a search for hidden treasure.

“…slap that money on the barrelhead and buy back the family farm. You ain’t no kind of man if you ain’t got land.”

Recently inherited land? Eyeballing a neighbor’s farm? Looking for recreational property? Is there development potential? What’s the value of your property? Is it the right time to sell? How do you set a fair price?

Are you still searching for hidden treasure?

Whether you’re in the market to buy, sell, manage or value the Midwest cropland that’s been gleaming in your eyes, consider contacting your local land broker to perform a proper assessment and help you make an informed decision before you start hunting for hidden gems.

After all, everything that glitters is not gold.

Warm weather and dry soil conditions have had producers on the edge of their seats, eager to begin planting, but cautious because early spring weather can change in a matter of hours.

At the same time, Crop Insurance regulations state that producers who plant corn before April 10, in Iowa, will lose replant payments in the event of weather damage to the emerging crop.  This in itself has kept the majority of farmer’s planters in the shed.  Instead, perfect soil conditions have allowed them to ready fields for planting, install tile systems that have been planned and complete necessary maintenance on their machinery.

That date is now here, and with a weather forecast that is cooperating, most planters are going to come out of the shed and start planting core in earnest. Long days, and with GPS systems now on many tractors, long nights, will make short work of planting corn this spring.

Temperatures are forecast in the low 30s the second week in April, but with highs in the 60s likely, and no rain in sight. Meteorologists are indicating a change in weather from last year by pointing “out that La Nina is dead, and the weather pattern has shifted to a neutral phase,” with the ultimate outcome still undecided.

Be careful out there.  Rural Iowa roads will be filled with farm equipment moving from field to field, creating a reason for motorists and farmers, who operate that equipment, to be alert at all times while on the road.

- Terry Pauling

Warm weather and dry soil conditions have producers eager to begin planting their 2012 corn acreage, even though the calendar says it is the first week in April, normally a cold and wet time period. Most producers are expected to wait until the calendar is a little more in their favor, but a few will most likely begin planting in the next few days.

For those who do plant corn before April 10, or soybeans before April 21, in Iowa, remember that replant payment options are not available if the crop should suffer severe damage due to cold, wet weather conditions after planting.

Once those respective dates are past, all payment options for the multi-peril product chosen for the 2012 crop year become available. In some cases, losses that are not timely reported may become ineligible for payment, so producers should contact their insurance agent anytime a loss is discovered to report the potential loss and allow the insurance company to process the claim.

Visit RMA’s website to view county specific planting dates, reporting dates, county T-yields, and other important crop insurance information.

- Terry Pauling

Peoples Company is pleased to announce that we have obtained a real estate brokerage license for the state of Minnesota, and are actively seeking land sales and management opportunities as we dig into other Midwestern markets.

Our growing land brokerage is also in the process of adding Nebraska and Illinois licenses, an endeavor we plan to complete by the end of 2012. The addition of these licenses will help us to better serve individual and institutional clients seeking exposure to markets outside of Iowa.

We are currently looking for land brokers throughout Iowa, Missouri and Minnesota to join our qualified team of agricultural real estate experts, as well as soliciting opportunities for the acquisition of other real estate brokerage and farm management accounts.

For more information, or to discuss an opportunity with Peoples Company, please email Steve Breure at steve@peoplescompany.com, or reach him by phone at (515) 222-1347.

Risk Management Agency (RMA) announced the 2012 final projected prices and volatility factors for 2012 commodities on March 2. County Actuarial tables are available at RMA’s website.

The projected price is used to calculate the insurable guarantee of each insured unit and the premium due for the insurance coverage on that unit.  The 2012 projected corn price was set at $5.68/bushel with a volatility factor of 0.22, both of which were determined by averaging the December 2012 futures prices during the month of February, following the Commodity Exchange Price Provisions.

The 2012 projected soybean price was set at $12.55/bushel with a volatility factor of 0.18, both of which were determined by averaging the November 2012 futures prices during the month of February.

The projected price is used to establish the cost and guarantees for Yield Protection products and Revenue Protection products available to the producer who shares in the risk of growing the crop. The policies then insure the producer against loss due to natural causes such as drought, excessive, moisture, hail, wind, frost, insects, disease, and, if selected, against revenue losses caused by a change in the harvest price from the projected price.

Producers will have until March 15 to contact their crop insurance agents to apply or make changes to their 2012 crop insurance coverage.

Now that prices have been announced, agents will be able to accurately calculate premium costs for each level of insurance coverage available, making it easier for the producer to decide the optimum level of risk protection for his/her farming operation.

Producers may also want to consider adding coverage for losses due to hail, which will help to cover production losses above their multi-peril guarantee level.  Contact your insurance agent for more details.

- Terry Pauling, Broker, Peoples Company

The 2012 Crop Insurance program signup is about to swing into overdrive once the U.S. Department of Agriculture announces the projected prices for corn and soybeans at the end of this week or beginning of the next. Producers will have until March 15 to decide whether to use Yield Protection or a Revenue Protection product.

Revenue protection has been the most popular in the last few years because it provides the producer with a guarantee based on the Projected Price, the unit’s actual production history, and the level of coverage chosen by the producer. Once the projected prices for each crop are announced they can compare the revenue products and choose the product that is most economical, but also insures their 2012 crops at a level which will cover the cost of the seed, fertilizer, fuel and chemicals necessary to get the crop in the ground, if those same crop acres are subjected to adverse weather conditions this summer.

A benefit of crop insurance revenue protection is the ability to market the growing crop during those months of the year when prices are typically higher than harvest prices. Should adverse weather affect production the producer who sold no more than the guaranteed bushels would still have the means to satisfy those sales commitments.

Risk Management Agency offers an online browser that provides county specific actuarial documents for each insurable crop on a county by county basis. You can access the Crop Report to review the actuarial documents at http://tinyurl.com/86ethf9.

- Terry Pauling, Broker, Peoples Company

Natural Resources Conservation Service (NRCS) Cost Share money is available from the U.S. Department of Agriculture to financially assist producers with installation of structures and practices on their land. The two most popular items are terraces and ponds.

However, many people are not aware that a wide variety of other items can be cost shared on as well.

Many non-traditional structures and practices that control erosion, improve air and water quality, and promote wildlife are eligible for cost-share money. Just a few examples: Brush Management, Animal Mortality Facility, Composting Facility, Cover Crops, Contour Buffer Strips, Fencing, Forest Stand Improvement, Livestock Watering Facilities, Pasture and Hayland Planting, Seasonal High Tunnel Structure for Vegetables and Ornamentals, Solid and Liquid Animal Waste Separation Facilities, Stream Crossing, Streambank Protection, Tree and Shrub Establishment, Animal Waste Storage Facilities, Water Wells, Wetland Restoration and Windbreaks.

Two sources of funding are available: Federal funding through the EQIP (Environmental Quality Improvement Program) and State funding through the REAP (Resource Enhancement and Protection) program. Applications are taken throughout the year for both programs. The EQIP funding is allocated once per year, usually in January. REAP funding is allocated throughout the year. More applications are received than there is funding available, so a computerized ranking system is utilized to determine which proposed projects will get funded.

An effort is made to fund those projects that will provide the most results for the dollars spent, and to target critical watersheds.

Cost Share approximates 50 percent for most applications. However, some individuals may receive approximately 75 percent cost share, if they qualify as a Beginning Farmer, a Limited Resource Farmer, or a Socially Disadvantaged Farmer.

To qualify as a Beginning Farmer, a producer must contribute significantly to the daily labor and management of their farm, and they must have done so for fewer than 10 consecutive years. To qualify as a Limited Resource Farmer, a producer must have gross farm sales of not more than the “current indexed value” in each of the two previous years (in Warren County, for example, this figure is currently $163,200), and have a total household income at or below the national poverty level for a family of four, in each of the previous two years. Again, in Warren County, for example, this figure is currently $31,576. To qualify as a Socially Disadvantaged Farmer, a producer must be one of a group whose members have been subjected to racial or ethnic prejudice. For purposes of application to the NRCS cost share program, gender does not qualify as socially disadvantaged.

If an individual qualifies for cost share funding, a contract is established between the applicant and the USDA. Typically the contracts are from two to five years in length, depending on the estimated time required for the applicant to get the structures or practices installed.

Applicants, who are expected to begin construction or installation within the first 12 months, are required to maintain any structures or practices for a certain period of time, depending on the expected life of the structure or practice. Individuals interested in finding out more information or making application are encouraged to contact their local NRCS office.

Contact information of local offices may be found on the NRCS National website at: http://www.nrcs.usda.gov/wps/portal/nrcs/main/national/home

- Rick Shafer, Realtor, Peoples Company