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Events

  1. Texas: Small Acreage Farm Equipment Field Day, Cameron, April 30

    April 30 @ 8:00 am - 5:00 pm
  2. Texas: 2 Grain Grading Workshops, Amarillo, May 3-4

    May 3 @ 8:00 am - May 4 @ 5:00 pm
  3. Texas: Spring Field Day, Chillicothe, May 4

    May 4 @ 8:00 am - 5:00 pm
  4. Texas: Annual Concho, McCulloch County Wheat Tour, Millersview, May 5

    May 5 @ 8:00 am - 5:00 pm
  5. Texas: Private Pesticide Applicators Training, Menard, May 5

    May 5 @ 8:00 am - 5:00 pm
  6. Texas: Private Pesticide Applicator Training, San Angelo, May 6

    May 6 @ 8:00 am - 5:00 pm
  7. California: Almond Workshops Scheduled May 10-12

    May 10 @ 8:00 am - May 12 @ 5:00 pm
  8. Kentucky: Wheat Field Day, Princeton, May 10

    May 10 @ 8:00 am - 5:00 pm
  9. Texas: Multi-County Ag Chemical Collection Event, Kenedy, May 11

    May 11 @ 8:00 am - 5:00 pm
  10. Texas: Private Pesticide Applicator Training, Floresville, May 16

    May 16 @ 8:00 am - 5:00 pm
  11. Texas: Ag Forum, Austin, May 16

    May 16 @ 8:00 am - 5:00 pm
  12. Kansas: Wheat In-Depth Diagnostic School, Colby, May 17-18

    May 17 @ 8:00 am - May 18 @ 5:00 pm
  13. North Carolina: Pesticide Disposal Day, Washington, May 18

    May 18 @ 8:00 am - 5:00 pm
  14. Texas: Land, Water, and Wealth Symposium, Lufkin, May 20

    May 20 @ 8:00 am - 5:00 pm
  15. Georgia: Pest Manager Training, Valdosta, May 27

    May 27 @ 8:00 am - 5:00 pm
  16. Tennessee: Weed Tour, Jackson, June 22

    June 22 @ 8:00 am - 5:00 pm
  17. Southern Peanut Growers Conference, Miramar Beach, FL, July 21-23

    July 21 @ 8:00 am - July 23 @ 5:00 pm
  18. Illinois: Agronomy Day, Savoy, August 18

    August 18 @ 8:00 am - 5:00 pm

Nebraska: Don’t Forget the Supply Side of Agricultural Land Markets

Debra Ferguson
By Bruce Johnson, Professor of Agricultural Economics, U. of Nebraska-Lincoln April 28, 2012

In today’s bullish agricultural land markets across the nation’s heartland, it is easy to attribute the climb in values to strong demand on the part of buyers wanting to invest in land to capture good returns of recent years. While true, that may be only half the story underlying the land market dynamics. Just as  “it takes two to tango,” it takes the supply side of the market as well as demand to create the land market dance.

We have been following the market for many years, observing the amount of land being offered for sale in any given time period. Historically, the agricultural land market has almost always been a “thin market,” with no more than three to four percent of the land base sold in any given year. That would suggest that the average probability of any typical agricultural land parcel coming onto the market was about once every 25 to 30+ years.

More recently, however, market observers have indicated that the number of offerings for sale are even lower than these historical rates. Apparently, individuals owning land are not as anxious to sell it given the perceived limited rates of return on alternative investments, and the satisfaction of enhanced wealth in recent years from holding ownership to agricultural land.

Using recorded real estate transfer records from the Nebraska Department of Revenue-Property Tax Division, we were able to get an accurate assessment of arms-length agricultural land sales (parcels of at least 40 acres) for each county in the state. Using the volume of acres sold from January 1, 2010 through June 30, 2011, we determined the average monthly sales rate and converted it to an annual average. When divided by total acres in farms for each county (from the most recent 2007 Census of Agriculture) the result is an annual percentage rate of sales turnover (Figure 1 on next page).

        
         

The results are rather surprising. The recent rate of agricultural sales activity for the state is 1.24 percent, far less than half the historical average. And in some counties, particularly some eastern counties where the land value climbs have been the most extreme, the turnover rates fall well below 1% per year. This means that the probability of a particular land parcel being offered for sale now is more like once in a hundred years!   Complete Report from Cornhusker Economics

 

Debra Ferguson
By Bruce Johnson, Professor of Agricultural Economics, U. of Nebraska-Lincoln April 28, 2012