INSIDE
Farm Science Review
Free Copy
Team
Reese Page B1
Special Section Inside
Thursday, September 17, 2015
|
Over 190 Auctions and 560 Classifieds
News, Auctions and Classifieds Since 1914
|
FarmandDairy.com
| Single Copy: $1.75
We knew it was coming
Despite tight crop margins, Ohio farm real estate and cropland values continue to increase. However, the rate of increase is less than last year, and most of the Corn Belt actually saw a decrease. (Chris Kick photo)
Farm incomes projected to drop for second year in a row
Land prices down across Corn Belt, but Ohio still increasing
Net farm incomes are forecasted to be down 36 percent from last year, the lowest since 2006
Ohio State economist expects Ohio land prices to continue to decrease by the end of the year
It’s not cash, but family farm managers gain ‘emotional’ wealth
By Catie Noyes catie@farmanddairy.com
WOOSTER, Ohio — For the second consecutive year, farmers will be feeling the pinch when it comes to their pocket books. Just two years ago, in 2013, farmers experienced some of the best commodity prices they had ever seen, but, as Isaac Newton so famously put it, “what goes up, must come down.” “Ag economy is known for its peaks and valleys,” said Jayson Harper, an ag economist at Penn State University. “There are natural cycles and we are hitting a low one.” The abundance of grain left over from last year’s crop and this year’s anticipated harvest of the third largest corn crop and second largest soybean crop on record are keeping prices below the cost of production, while the cost of (Continued on Page A16)
ITHACA, N.Y. — New Cornell University research shows family members who work on the family dairy farm make $22,000 less annually than comparable hired managers, but are compensated with “socioemotional” wealth. “While $22,000 seems like a large penalty, there are nonfinancial rewards they experience working for the family business,” said Loren Tauer, Cornell ag economist who, with lead author Jonathan Dressler of MetLife’s Food and Agribusiness Finance, published Socioemotional Wealth in the Family Farm, in the Agricultural Finance Review. “Family members like to work for the family farm, as it brings prestige and satisfaction by working with siblings, cousins and parents,” explains Tauer. “The socioemotional part is that these family members feel an attachment to the dairy farm. It’s a warm and fuzzy feeling.” (Continued on Page A16)
By Chris Kick ckick@farmanddairy.com
WOOSTER, Ohio — The softening grain prices have put some downward pressure on farmland values this year — although not as much as you might expect. While grain prices decreased significantly, land values are actually up — at least in Ohio, Michigan, West Virginia and Indiana. Farm real estate values (land and buildings), increased by 2.4 percent across the United States — but the rate of increase is considerably lower than the previous five years, according to an Aug. 5 report by the U.S. Department of Agriculture’s National Agricultural Statistics Service. On a national level, farm real estate is averaging $3,020 per acre, compared to $2,950 per acre in 2014, $2,730 in 2013, and $2,300 in 2011.
State level. In Ohio, farm real estate values are up 3.6 percent over last year, at $5,760 per acre, and Ohio’s cropland value (without buildings) increased 3.5 percent, to $5,850 per acre. But the increase is less than half of the increase from 2013 to 2014, which was nearly 9 percent; and the 2012 to 2013 increase, which was just under 10 percent. In Pennsylvania, farm real estate actually decreased by about 1.8 percent, to average $5,500 per acre, but cropland increased by one percent, to reach $5,900 an acre. As expected. Barry Ward, an ag economist with Ohio State University and leader of Production Business Management with OSU, said he’s not surprised at the results. He had predicted a softening of land prices at the onset of the year, due to lower returns from crops. “I think it’s consistent from what we’ve been hearing from appraisers and auctioneers,” he said. Ward said land prices may decrease further as the year comes to a close. But on the flip side, values in Ohio are still up over the previous year, compared to the (Continued on Page A3)
Volume 101 - No. 52 | Five Sections ©LYLE Ptg. & Pub. Co. - ISSN 0014826
American Poetry.........................B21 Antique Collector........................B13 Around the Table ........................A43 Auction Calendar ........................B24 Baxter Black ...............................A17 Black Ink .....................................A15 Calendar......................................C10
Classifieds ..................................C13 Commodities ................................A6 Crossword/Sudoku ....................A40 Dairy Excel ..................................A27 Dirt on Conservation ..................A13 Equine Calendar .........................C10 FFA News....................................A31
4-H News ....................................A15 Hazard A Guess ..........................B16 Markets .......................................A34 New Products .............................A33 Opinions ........................................A4 People .........................................A25 Real Estate .................................C30
Home Delivery - Call 800-837-3419 | FarmandDairy.com/subscribe | P.O. Box 38 - Salem, Ohio 44460
Religion .......................................A41 Rubes ..........................................B26 Kymberly Foster Seabolt .............B1 Mike Tontimonia ..........................C4 Truck & Tractor Pulls....................C8 Vacation With Us ..........................B9 Weekly Auctions .........................B32