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Land Investment Monthly - December 2016

December 21, 2016 - Peoples Company
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The Land Investment Monthly is a round-up of articles and headlines published by the farm press, business media and financial publications with insights into buying, selling or investing in farmland, recreational ground or development ground.

What’s My Farm Worth?
Successful Farming magazine reports on the value buyers and renters are finding with readily accessible valuation platforms such as WhatsMyFarmWorth.com. With an eye on cash-rent negotiations and factors including yield by soil type, five-year crop yields and crop prices, the article expounds on web-based tools that can help improve relationships with landlords while putting neatly aggregated data points and a price estimate into the hands of landowners and prospective buyers. Read more.

Land Expo
The Land Investment Expo–driven by a decade’s worth of innovation and attracting headliners such as Wall Street legend Jim Rogers, oil-and-gas energy magnate T. Boone Pickens and now-President Elect Donald Trump–returns on February 3 to West Des Moines, Iowa. The 2017 event, our 10th annual, will feature the perspectives of comedian Ben Stein and outspoken hedge fund manager Steve Eisman–the man portrayed by actor Steve Carrell as “Mark Baum” in acclaimed film “The Big Short.” Join Peoples Company and friends as we celebrate attendees of the nation’s premier agricultural real estate conference, featuring unparalleled access to leading perspectives on the economy, environment, technology and politics. Read more.

Continuous Improvement
The Iowa Soybean Association takes a closer look Nick Morrell, a Peoples Company conservation consultant with an emphasis on soil stewardship and continuous improvement. What should every farmer and landowner know when considering the importance of conservation practices? For Morrell, it starts with asking the right questions as they relate to the practicality of long-term planning, appropriate maintenance and maximization of land values. Read more.

Sustainable Investment
An independent study produced for the Yale School of Management & Yale School of Forestry and Environmental Studies examines current conditions of sustainable farmland investment strategies. Ten sustainable investment farms, with more than $6 billion under management, were interviewed as part of the project. “Do sustainable farmland investments deliver financial, environmental and social returns?” Primary value drivers associated with sustainable agriculture, the authors contend, include price premiums, market access, lower costs, risk mitigation and consistent yield. Read more.

Tangible Wealth
CNBC reports on a U.S. Trust survey that considers commonalities among some of America’s wealthiest people, and how they struck it rich. Eighty-six percent of survey respondents noted that their largest gains came by way of buying and holding investments. Nearly half said that they had diversified in valuable tangible assets such as timber properties or farmland. Optimism, discipline and philanthropy were each cited as traits shared by the wealthy, including the 77 percent of people with at least $3 million in investable assets, and who came from middle class or lower backgrounds. Read more.

Down Town
The value of Iowa farmland fell to $7,183 an acre, according to a new report out of Iowa State University and marking a third consecutive year of declines. Despite lackluster commodity prices and farm income that’s down 42 percent from its 2011 high, experts don’t expect a repeat of the 1980s farm crisis as investors have raised millions of dollars nationally to invest in farmland. An acre of Iowa farmland in 2013 was valued at $8,716, a record high. Read more.

New Ambassador
The longest-serving governor in American history has been slated as the next U.S. ambassador to China. Iowa Governor Terry Branstad accepted the nomination, announced on December 7 by president-elect Donald Trump, while drawing attention to close ties and a long-standing friendship with China President Xi Jinping. The Des Moines Register reports on Branstad’s role as an advocate for trade and economic cooperation with China, alongside numerous trade missions focused on the promotion of Iowa agriculture products. Read more.

Farm Policy
The administration of President Donald Trump, during its early days in office, will address federal overreach and consider regulatory relief in the agriculture sector, Agriculture.com reports. Sources note that a major emphasis for the Trump team is expected to be on an expansion of farm exports. From water and grazing rules to the Endangered Species Act, GMO-disclosure laws and livestock marketing rules, the article digs in to speculation on what farm policy hands have to say. Read more.

Liquid Gold
Water issues in California, a state that has suffered under drought conditions for five years and running, could have a broader impact on agriculture throughout the nation. Farm Journal’s Ag Pro reports that the high cost of production in portions of California are leading some real estate professionals to consider how soil quality, water supplies and lower costs could attract greater numbers of fruit-and-vegetable producers to Midwest farmland. As opposed to bullion-hungry prospectors of the 1840s–looking to strike in rich by rushing into what is now the No. 1 agricultural state in the U.S. and the fifth-largest agricultural producer in the world–the focal point of a new article produced by Ag Professional is liquid gold. Read more.

Value Chain
Agriculture, estimated to be the third-largest market in the world, continues to draw the attention of investors amid trends revolving around sustainability, technology, consumer quality and institutional affairs. Globally, assets under management invested in farmland are estimated to represent up to $45 billion. From supply-and-demand imbalances to a hedge against inflation, low correlation to other asset classes, and the preservation of wealth, AgriNews points to ways in which investors are approaching various stages of the agricultural value chain. Read more.

Follow Steve Bruere @SBruere on Twitter and find Peoples Company on Facebook for the latest land listings, auction results, upcoming events and real estate news. To subscribe to my monthly updates via email, send a message to Steve@PeoplesCompany.com with “Land Investment Monthly” in the subject line.

Published in: Real Estate