Spring Updates 

Spring is officially here and things will be happening in the field soon. Please see below for details regarding conditions throughout our service area… 

Southwest Kansas/Southeastern Colorado: Mark Callender, AFM, Dighton, Kansas, reports: Even though dry conditions persist in this area, the agricultural economy is strong. The dryland wheat crop is in fair to poor condition in most of the area with spotty stands on many fields and some areas where the crop did not even germinate last fall because of the dry soil conditions. The wheat crop in the west-central part of Kansas is in fair to good condition. There are now two ethanol plants up and running in southwest Kansas and with the additional demand for feed grains, corn will the be primary crop planted on irrigated acres with alfalfa, irrigated wheat, and soybeans picking up the balance of the irrigated acres. Most lease arrangements are crop share leases with cash rent leases increasing from 2007 by 15% to 25%. With the higher commodity prices, some landowners have shown more interest going to a custom farming arrangement.  

Land values have also increased with dryland ranging from $375 to $500 per acre in southeast Colorado and $600 to $900 per acre in southwest Kansas. Irrigated land values are currently $1,200 to $2,000, depending on who owns the irrigation equipment. For additional information, please contact Mark Callender, AFM, at (620) 397-5160 or email mcallender@farmersnational.com.  

Iowa: Ben Watson, our Accredited Farm Manager (AFM), in Story City, Iowa, reports: Across central Iowa, growers eagerly anticipate warmer, drier weather to commence spring fieldwork. Most applications of nitrogen fertilizer and dry fertilizers, as well as primary tillage were done last fall. An increase in capacity to complete planting tasks was put in place by many growers, so what was a rapid project in the past when the window became available should be lightning fast during 2008. The cost of fuel remains a top concern for those without contracts in place. Fuel as well as grain contracts are sometimes difficult to find. For grain contracts, some grain buyers offer basis-only contracts as they do not want to withstand any further margin calls derived from short positions or hedges on futures markets as prices of contracts traded on those futures markets escalate.    

Overall, land values continue to increase with growers usually the strong buyers, rather than investors. The range of cash rental rates for similar cropland are likely the widest in history. A segment of growers with an eye toward expansion and with an understanding of both their costs and abilities will accept much stronger rental rates. Returns from custom operations, those farms under professional management for which our clients provide all operating capital and assume production, weather, and price risks, clearly demonstrate the margin available for high cash rental rates." For additional information, please contact Ben Watson, AFM, at (515) 733-4344 or email bwatson@farmersnational.com.  

Southern Illinois/East Central Missouri. Bret Cude, AFM, Nashville, Illinois, shares his thoughts on the conditions in his area: This area is very wet. Temperatures have been below normal, which has not helped with any drying. Planting is behind the past few years, and with the current soil moisture, it will likely be at least 10 days, without additional moisture and ideal drying conditions. However, planting has been earlier than normal the past several years, and today's operators can get a great deal planted in a short period of time. Winter wheat acres are up in my area and most of it continues to look pretty good. However, the wet weather has delayed the application of nitrogen on a good deal of the crop and may require the need to use fungicide to help offset diseases.  

Lease terms have increased with many leases now net leases with the landowner paying none of the annual input production costs. With the tremendous increase in the cost of fertilizer, herbicide, and seed, these leases will not only increase the landowner's income, but greatly reduces their out-of-pocket expenses. Cash leases, while not as prominent in this area, do continue to increase as well.  

Land values have remained strong with continued interest of both investors and farm operators. The 1031 exchange investor has slowed, but other long-term investors as well as farmers are looking to take advantage of this boom in agriculture. Please feel free to contact Bret Cude, AFM, CCA, at (618) 327-9242 for additional information or email bcude@farmersnational.com.   

Illinois: Accredited Farm Manager Roy Bracey in our Chenoa, Illinois, office reports: It has been cooler and wetter than normal over the past six weeks with little or no weather conducive to drying the topsoil and allowing for any field work. We have only had a few days when the highs exceeded 60 degrees. The soil surface is soft and it will take several days of good drying weather to have good working conditions. Fortunately, warmer weather is forecasted. We can still get off to a timely start, but planting probably will not be as early as it has been the past few years. 

Land prices have been very strong although activity has been light as landowners remain content with increased returns resulting from surging grain prices. Custom operations, net share leases, and crop share leases with supplemental rents have put those landowners in position to reap the benefits of record level grain prices. Land prices in the $6,000 to $8,000 range are becoming more common. Please contact Roy Bracey, AFM, at (815) 945-7722 for additional details or email rbracey@farmersnational.com.  

Indiana: John Mandeville, AFM, Oxford, Indiana, reports: As we head into planting season in Indiana, conditions are very wet. There has been little spring field work completed. We will definitely have a later planting season than 2007. There is still plenty of time for the crop to be planted in a timely manner to produce high yields. 

The land rental market remains strong. Cash rents have increased by 30% + from 2007 rents and remain strong going into the 2008 crop year. We continue to have interest from landowners on what the land rental market is doing. We have also seen a renewed interest in some types of crop share leases. Land sales remain strong with sales ranging from $4,000 to $6,000 per acre. Good quality land is moving very fast once it is placed on the market. For additional information, please contact John K. Mandeville, AFM, at (765) 385-2266, ext 305, or email jmandeville@farmersnational.com.  

For information about your specific area, please contact Jerry Warner, Lee Vermeer, or Jim Farrell toll free at 1-800-346-2650. 

Real Estate & Auction News

Large Edgar County, Illinois, Farm 2,775± Acres! 

This farm is located approximately 11 miles northeast of Paris, Illinois, in the east-central part of Edgar County, very near the Indiana state border. 

A unique size for an investor at a good price and one of the largest farms in Edgar County. Has a mix of mostly level to undulating tillable land with woodlands and ponds for recreational use. It is one of the largest farms in Edgar County and has a mix of mostly level to undulating tillable land with woodlands and ponds for recreational use.  

For additional information or to arrange a property showing… click here  or contact Mac Boyd, agent (217) 268-4434 or email mboyd@farmersnational.com.  

River Runs Through It Ranch... 

South Loop River Frontage 

Farmers National Company has just listed a beautiful 320-acre tract of land in Howard County, Nebraska, just 2± miles southeast of Boelus, Nebraska. The South Loop River runs through the property offering the new owner access to both sides of the South Loop with over one mile of combined frontage. The property is a mix of grassland and timber with outstanding hunting habitat for deer, turkey, and waterfowl. You will have to look hard to find another property that offers so much in one package. In addition, there is a number of really nice cabin or home sites on the property. If you would like more information on this "Hunter's Dream" package…click here or call Randy Hartmann at (308) 382-9311, Grand Island, Nebraska, or email rhartmann@farmersnational.com.   

Nice Property For Sale in  

Whiteside County, Illinois! 

1,336+/- acres in Whiteside County, Illinois. Two units offered in seven (7) tracts. Unit 1: 741 +/- Acres; Unit 2: 595 +/- Acres. Farmland and grain storage northwest of Erie, Illinois. This property is mostly tillable with productive soils. For additional information, please click here or contact Penny Lauritzen, Agent at (815) 493-6098 or (815) 535-4141 (cell) Listing ID: A-16121. 

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