{"id":819,"date":"2015-11-16T10:35:27","date_gmt":"2015-11-16T10:35:27","guid":{"rendered":"http:\/\/team.simplyfreedom.ws\/?p=819"},"modified":"2016-05-07T08:39:04","modified_gmt":"2016-05-07T08:39:04","slug":"wsj-farmland-prices-decline-across-parts-of-midwest","status":"publish","type":"post","link":"http:\/\/team.simplyfreedom.ws\/index.php\/wsj-farmland-prices-decline-across-parts-of-midwest\/","title":{"rendered":"WSJ – farmland prices decline across parts of midwest"},"content":{"rendered":"

Published on: Nov 16, 2015 @ 10:35<\/b><\/span> am<\/p>\n

WSJ – farmland prices decline across parts of midwest<\/h3>\n

Farmland values fell in parts of the Midwest in the
\nthird quarter, reflecting a downdraft in the
\nagricultural sector driven by three years of lower crop
\nprices, according to Federal Reserve reports on
\nThursday.\u00a0 The average price of \u201cquality\u201d farmland in
\nthe St. Louis Fed\u2019s district, which includes parts of
\nIllinois, Indiana and Missouri, dropped 2.6% from a
\nyear earlier, as farm incomes weakened considerably,
\nthe Fed bank said.\u00a0 In the Kansas City Fed\u2019s district,
\nwhich includes Kansas and Nebraska, irrigated-cropland
\nvalues declined 1%, while the average price of
\nnonirrigated land rose 0.4%, the bank said. Irrigated
\nfarmland depends on man-made water systems rather than
\nrainfall.\u00a0 In the Chicago Fed\u2019s district, which
\nincludes Illinois and Iowa, prices for farmland
\nremained largely the same in the third quarter compared
\nwith a year ago, and rose 1% versus the second quarter
\nof this year, the bank said.\u00a0 The reports largely
\nunderline a slowdown in the agricultural economy that
\nhas softened farmers\u2019 demand for cropland after a
\nyears long run-up in prices. Both crop prices and land
\nvalues rose sharply for much of the past decade, driven
\nhigher by drought and burgeoning demand for grain from
\nethanol producers and overseas buyers. That led flush
\nfarmers to bid up land values. This autumn, however,
\nfarmers for the third straight year are harvesting
\nbumper corn and soybean crops, further elevating global
\nsupplies and adding pressure to prices that have fallen
\nby more than half since 2012.\u00a0 Midwestern bankers
\nsurveyed by the Fed banks in both the St. Louis and
\nKansas City districts said farm income fell
\nsignificantly in the third quarter, and many expect a
\ncontinued cooling of land values in the current quarter
\nas farmers adjust to leaner times.\u00a0 \u201cBecause of some
\nconcern about the fall harvest and the recent dip in
\nlivestock prices, agricultural bankers have a rather
\ndour view of farm income prospects in the fourth
\nquarter of 2015,\u201d the St. Louis Fed said in its report
\non Thursday.<\/p>\n

The Chicago Fed said most Midwestern lenders it
\nsurveyed think farmland values will drop in the current
\nquarter, implying that the lack of an overall decline
\nin the third quarter \u201cwas merely a pause in a
\nlonger-term correction,\u201d wrote David Oppedahl, senior
\nbusiness economist at the Chicago Fed, in Thursday\u2019s
\nreport.\u00a0 The report cited stable prices for corn in the
\nthird quarter, as well as a lack of available farms for
\nsale as likely factors propping up land values in the
\nChicago region.\u00a0 Agricultural land values in Iowa and
\nIllinois, the two largest corn-producing states, both
\ndeclined from a year earlier, though the losses were
\noffset by higher prices in Wisconsin and Michigan.
\nAverage ranchland values rose both in the St. Louis and
\nKansas City Fed\u2019s district, though bankers in both
\nregions expect prices for the land used to raise
\nlivestock to decline versus year-ago levels in the
\ncurrent quarter.\u00a0 Both the Chicago and Kansas City Fed
\ndistricts said financial conditions for farmers
\nweakened in the third quarter, with loan repayment
\nrates down and expected to decline further as the year
\nwraps up. Mr. Oppedahl said an index of repayment rates
\nfor loans excluding real estate in the Chicago region
\ncould drop to the lowest level since 1999, while more
\nfarmers facing financial strain could be forced to hold
\nfarm sales or sell off assets in the next three to six
\nmonths compared with year-ago levels.\u00a0 \u201cLand values
\nhave definitely been declining,\u201d said Brandon Rutledge,
\n34 years old, who grows corn and soybeans and raises
\nlivestock in Le Roy, Ill.\u00a0 Less farmland than normal is
\ngoing on the market in Mr. Rutledge\u2019s area because
\nnearby land prices have dropped, he said.\u00a0 The farmer
\nadded that he plans to drive a hard bargain with seed
\nsuppliers and apply less fertilizer to his cropland to
\ncut costs and stay profitable for this year. Still, he
\nsaid, \u201cit\u2019s going to be tight.\u201d<\/p>\n

 <\/p>\n

Empire State manufacturing activity rooted in
\ncontraction<\/h3>\n

Business conditions in the state of New York continued
\nto deteriorate in November, declining for a fourth
\nstraight month despite recent signs of stabilization in
\nthe US manufacturing sector, according to the Federal
\nReserve Bank of New York.\u00a0 The Empire State’s business
\nconditions index came in at -10.7 this month, compared
\nwith -11.4 in October and -14.7 in September.
\nEconomists surveyed by The Wall Street Journal expected
\nthe gauge to improve to -5. A reading above zero
\nreflects expansion; a reading below that level denotes
\ncontraction.\u00a0 The index is still firmly in
\ncontractionary territory and again fell short of the
\nbounce economists expected.\u00a0 The US manufacturing
\nsector remains under pressure from weaker global demand
\nand from the stronger US dollar, which makes exports
\nmore expensive. Recent reports from some pockets of the
\ncountry have shown modest improvement, though producers
\nin the northeast have continued to report unfavorable
\nconditions.\u00a0 The gauge follows the government’s latest
\nemployment report, which showed no change in overall
\nmanufacturing hiring activity last month but a slight
\nimprovement in the length of employees’ workweek.\u00a0 The
\nNew York Fed survey is the first monthly factory report
\nreleased by regional Fed banks. Economists use the Fed
\nsurveys to forecast the health of the national
\nindustrial sector as captured in the monthly
\nmanufacturing report released by the Institute for
\nSupply Management, next due out Dec. 1.<\/p>\n

NAR – drone landscape still evolving as realtor, other
\ncommercial use grows<\/h3>\n

The Federal Aviation Administration continues its work
\nto integrate unmanned aerial systems, also known as
\ndrones, into the National Airspace System, and Realtors
\nstand ready to take advantage of their many benefits.
\nThat\u2019s according to panelists at the \u201cUsing a Drone in
\nYour Business: Knowing Your Risk\u201d session held as part
\nof the 2015 REALTORS Conference & Expo.\u00a0 \u201cThis
\ntechnology is an incredible tool for real estate
\nprofessionals, but can be dangerous if the wrong person
\nis in control,\u201d said session moderator Kolleen Kelley,
\nRealtor and 2015 Risk Management Committee vice chair.
\nOther panelists included Eric Myers, vice president of
\nVictor O. Shinnerer & Company; Lesley M. Walker,
\nNational Association of Realtors associate counsel; and
\nDean Griffith with FAA\u2019s Office of the Chief Counsel.
\nThe panelists spoke about the extensive benefits of
\nusing drones in real estate, but also warned the
\naudience that following the rules is of critical
\nimportance to mitigate potential risks and liabilities.
\nWide-scale commercial use of drones is currently
\nprohibited, but the FAA has streamlined a waiver
\nprocess for individuals and businesses interested in
\nusing drones for commercial purposes. So-called Section
\n333 waivers are already in use by dozens of Realtors
\nand other operators currently using drones for their
\nbusiness.<\/p>\n

Panelists widely agreed that the use of drones for
\ncommercial purposes will only grow with time, even as
\nissues related to safety, privacy, insurance and the
\nregulatory framework continue to evolve. They advised
\nthe audience about the importance of hiring approved
\noperators with strong risk management practices,
\nsufficient insurance coverage and, most importantly, a
\nSection 333 waiver from the FAA.\u00a0 The speakers also
\nreminded Realtors to be thoughtful about agreements
\nwith outside companies to ensure that ownership of any
\nphotographs taken is clear, as intellectual property
\nlaws and rules still apply.\u00a0 Walker pointed to NAR\u2019s
\npolicy statement in noting that the association
\nsupports the integration of unmanned aerial systems
\ninto the National Airspace System, or NAS, and a clear
\nregulatory framework for interested Realtors to
\nresponsibly make drones a part of their business.\u00a0 This
\nincludes making safety a top priority, and earlier this
\nyear NAR joined an industry \u201cKnow Before you Fly\u201d
\ncampaign and partnered with the National
\nTelecommunications and Information Administration\u2019s
\n\u201cMultistakeholder Process: Unmanned Aircraft Systems\u201d
\nto further highlight the importance of safety,
\nsecurity, and privacy in commercial drone use.<\/p>\n

The FAA is currently moving through a rulemaking
\nprocess to address the integration of drones into the
\nNAS, which Griffith noted FAA hopes to complete by June
\n2016.\u00a0 In September, NAR President Chris Polychron,
\nexecutive broker of 1st Choice Realty in Hot Springs,
\nArkansas, testified before a US House Judiciary
\nSubcommittee on the value of drones in real estate.
\n\u201cCommercial drones represent an opportunity to create
\njobs and businesses, as well as to support the business
\nof real estate,\u201d said Polychron. \u201cNAR is pleased to see
\nthis important issue get the attention it deserves and
\nwill continue working with the FAA to advance clear
\nregulations that are affordable for users, safe for
\ntheir communities, and mindful of the safety and
\nprivacy of individuals.\u201d<\/p>\n

Global oil prices mixed<\/h3>\n

As of 9:30 a.m. ET, US crude oil prices slid 0.59% to
\n$40.52 a barrel, while Brent, the international
\nbenchmark, declined 1.01% to $44.02 a barrel.\u00a0 Oil
\nprices edged up on Monday on geopolitical concerns
\nafter Friday’s deadly attacks in Paris claimed by
\nIslamic militants, but gains were muted due to a global
\ncrude glut.\u00a0 France carried out large-scale air strikes
\nagainst Islamic State sites in Syria overnight, giving
\noil market investors reason to step up buying activity
\nafter a week in which crude benchmark prices fell as
\nmuch as 8%.\u00a0 “Some risk premium is factored into the
\nmarket after the terror attacks in Paris. We had an
\noversold market, so it is a technical recovery as
\nwell,” said Frank Klumpp, oil analyst at
\nStuttgart-based Landesbank Baden-Wuerttemberg.
\nFront-month Brent crude prices were up 34 cents at
\n$44.81 a barrel at 0415 ET. US futures traded 36 cents
\nhigher at $41.10 a barrel.\u00a0 An OPEC delegate from a
\nGulf producing country said he believed that in the
\nmid-term oil prices could get some support due to
\nrising tensions especially if the international
\ncommunity takes more steps to reduce smuggling of oil
\nand hits oil facilities under Islamic State’s control
\nin Syria and Iraq.\u00a0 But oil and other commodities could
\nalso come under renewed pressure on fears the attacks
\nwill further slow the global economy.\u00a0 Many analysts
\nalso continue to believe prices will remain under
\npressure due to abundant stocks of oil and slowing
\neconomic growth.\u00a0 “Our outlook is skewed negative into
\n(the first half of next year). Macro headwinds remain,
\ncrude oil inventories are building,” Morgan Stanley
\nsaid.<\/p>\n","protected":false},"excerpt":{"rendered":"

Published on: Nov 16, 2015 @ 10:35 am WSJ – farmland prices decline across parts of midwest Farmland values fell in parts of the Midwest in the third quarter, reflecting a downdraft in the agricultural sector driven by three years of lower crop prices, according to Federal Reserve reports on Thursday.\u00a0 The average price of […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[39],"tags":[176,180,178,160,177,80,179,41],"_links":{"self":[{"href":"http:\/\/team.simplyfreedom.ws\/index.php\/wp-json\/wp\/v2\/posts\/819"}],"collection":[{"href":"http:\/\/team.simplyfreedom.ws\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/team.simplyfreedom.ws\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/team.simplyfreedom.ws\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/team.simplyfreedom.ws\/index.php\/wp-json\/wp\/v2\/comments?post=819"}],"version-history":[{"count":2,"href":"http:\/\/team.simplyfreedom.ws\/index.php\/wp-json\/wp\/v2\/posts\/819\/revisions"}],"predecessor-version":[{"id":821,"href":"http:\/\/team.simplyfreedom.ws\/index.php\/wp-json\/wp\/v2\/posts\/819\/revisions\/821"}],"wp:attachment":[{"href":"http:\/\/team.simplyfreedom.ws\/index.php\/wp-json\/wp\/v2\/media?parent=819"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/team.simplyfreedom.ws\/index.php\/wp-json\/wp\/v2\/categories?post=819"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/team.simplyfreedom.ws\/index.php\/wp-json\/wp\/v2\/tags?post=819"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}