Illinois Golf Course May Return to Farmland

Will Crane Creek Golf Course continue to exist? Or will it once again become farmland? The answer may depend on who purchases the 347-acre Mason County property on Tuesday, Feb. 21, when Murray Wise Associates sell it at auction.

"Crane Creek has a loyal customer base of area golfers, but farmland is in high demand right now, and it wouldn't surprise me if someone chose to convert the course back to agriculture. Before the golf course was built, the property had been used for a Christmas tree farm, and it includes 40 acres that are mostly tillable now. Another 61 acres of pasture and timber are already in the federal Conservation Reserve Program," said Murray Wise, CEO of the auction company.

The golf course itself will sell in three tracts. A 97-acre tract includes the front nine, as well as 26 surveyed sites for future residential construction. The back nine are included in a 133-acre tract, along with a building. The clubhouse, maintenance building and driving range are located on a 16-acre tract.

"Much of the golf course land per se would make excellent pasture and is also suitable for hunting and recreation," Wise said.

"Homes along golf courses are always popular, so the home sites may add significant value, especially if the buyer continues to operate the golf course. As the economy gathers strength, I expect we'll eventually see an uptick in construction," he said.

The Par 72 course has five sets of tees, with a range from 5,256 yards to 7,390 yards. It is ranked by Golflink.com as one of the 20 best Illinois golf courses. The 3,200-square-foot clubhouse has a pro shop, kitchen, bar area, banquet room and manager's efficiency apartment.

Source: Murray Wise Associates news release

DV Notes: Here’s to hoping this trend continues, putting agriculture, feeding ourselves, (and the rest of the world) in front of urban sprawl.

17,000 plus Acres of W. Kansas, E. Colorado Farmland to Be Sold

One of the largest farms ever to be offered in eastern Colorado and western Kansas has been placed on the market for sale. The high-quality farm consisting of nearly 18,000 acres of some of the best farmland in this Colorado and Kansas area was placed on the market by Mason Morse Ranch & Farm Company of Glenwood Springs, Colorado.

With farmland values on the upswing, rising commodity prices, low interest rates, inflation pressures and other world economic factors investors continue to seek out long-term investments with desirable returns in the agricultural land market.

As these investors seek land investments and cash-rich farmers desire to expand their operations, farmland available for sale is in very limited supply. The record setting prices of the past two years have not swayed buyer interest as they continue to buy up the limited available properties for sale at a record pace.

Ben Hudye, 2010 Top Producer finalist and owner of Hudye Farms, US, Inc. explained his family has spent many years building this farm land holding up to its current size. "It took us close to ten years to establish the right model and to accumulate this land.

The right buyer will have it all before this year's crop is planted. The farm is fully leased to young, aggressive growers; we will just slip out from behind the wheel and an investor can slip right in. This property is a wonderful opportunity for the right buyer to either establish themselves in the farmland market, or to complement their existing holdings, all in one simple transaction," said Hudye.

"We continue to see strong buyer demand and full-price offers for high-quality farmland across the plains. This historically stable agricultural asset class continues to increase in value for the buying public at a time when worldwide food consumption habits are shifting, demand worldwide for grain is high and rental values along with commodity prices remain strong. This is an exceptional opportunity to acquire a very large and productive farm," said Bart Miller, Managing Broker of Mason & Morse Ranch Company.

The 17,741 acres of farmland is generally located around Burlington, Colorado in Kit Carson and Cheyenne Counties, Colorado with a few tracts just across the Colorado-Kansas state line in Sherman and Wallace Counties near Goodland, Kansas with an additional 1,760 acres in Logan County, Kansas near Winona.

Primarily the majority of the farmland topography is nearly level and undulating in large parcel groups. The largest of which is 12,000 acres within a 12-mile radius. The second largest grouping is 3,000 acres within a 5-mile radius. Web Link: www.ranchland.com/coloradokansasfarmland

Source: Mason & Morse Ranch Company news release

DV Notes: 17,000 Acres would be approximately 26 square miles or roughly the size of Stillwater, Oklahoma.

Internet Bidding at Livestock Auctions Becoming More Mainstream

“Seed Stock producers are beginning to see online broadcast as a critical piece of their livestock marketing plans” stated Brett Spader, Director of Marketing & Special Services for DV Auction.

“Booking for online broadcast are up 35% over same time last year. We have also seen a sharp increase in online bidding activity and livestock being purchased via the internet. In many cases due to a poor attendance at the physical location due to inclement weather or other conflicts the online buyers have doubled or even tripled the activity of the traditional buyers” remarked Spader.

Producers themselves are praising the internet’s reach and ability to bring in other buyers from all over the country. During recent conversation with notable Kansas Angus breeder Gordon Stucky, Stucky said, “We view our partnership with DV Auction and their ability to draw people to our sale, in cyberspace, as important as printing and mailing our sale catalog.”

“We wouldn’t hold a sale without an online bidding and buying system” he said.

Jon Thomas, Texas commercial cow calf producer, has made several herd sire purchases on DV Auction.

“I like the ability to shop several ongoing bull sales at the same time. Being able to comparatively assess genetics, value, and breed composition all without leaving the comfort of my office is a real convenience for me,” said Thomas.

“I use to spend half a day or a day driving to various sales hoping to get a few bought with in my budget. Now I can log on and within a few minutes make a buying decision and get back to doing chores around the ranch,” he said.

It’s not just the seed stock producers and commercial cattlemen who are recognizing the value, livestock marketing centers are seeing the importance of an online audience as well.

"Livestock marketing has always been and always will be a very competitive business," Stated Jon Angell co-owner Eastern Missouri Commission Company, Bowling Green, Missouri. "A part of staying competitive and remaining viable going forward is adapting to a changing environment. I have no doubt that our decision early on to broadcast our weekly auction helped to grow our business and improve our sales. We regularly market cattle for consignors who have never set foot in our facility, but that no longer means that they haven't 'seen' our market. They now can keep up with our market and are able to watch their own cattle sell through our ring without investing both the time and money traveling to the sale. Our people love it. At the end of the day we are providing a package of services to buyers and sellers, in this day and age I believe this has become just another service that is not only appreciated but has evolved to being one that is expected."

DV Auction is a full service livestock marketing firm with offices in Norfolk, Nebraska and Lincoln, Nebraska and field men stationed around the country. For more information please visit www.dvauction.com.

Source: Abel Jones, freelance agricultural journalist

USDA: Cattle On Feed Up 3%

Cattle and calves on feed for slaughter market in the United States for feedlots with capacity of 1,000 or more head totaled 11.9 million head on January 1, 2012.

The inventory was 3 percent above January 1, 2011.

The inventory included 7.28 million steers and steer calves, up 1 percent from the previous year. This group accounted for 61 percent of the total inventory. Heifers and heifer calves accounted for 4.50 million head, up 6 percent from 2011.

Placements in feedlots during December totaled 1.68 million, 6 percent below 2010. Net placements were 1.59 million head. During December, placements of cattle and calves weighing less than 600 pounds were 550,000, 600-699 pounds were 390,000, 700-799 pounds were 365,000, and 800 pounds and greater were 378,000.

Marketings of fed cattle during December totaled 1.80 million, 2 percent below 2010.

Other disappearance totaled 91,000 during December, 40 percent above 2010.

Source: USDA news release

CME Says MF Global Money Still Missing, Wrongdoing Suspected

National Association of Wheat Growers (NAWG) reports:

A briefing this week held by the commodity futures industry's trade association shed little light on how MF Global misplaced nearly $1 billion before its bankruptcy.

The session was sponsored by the Commodity Markets Council and included statements from Ann Shuman, a deputy general counsel for the CME Group.

CME representatives could not offer new details about the whereabouts of the missing money, which is currently estimated to be just over $1 billion, but they did reiterate statements made in Congressional hearings that the crisis arose due to poor, and possibly illegal, decisions by MF Global rather than a lack of oversight.

At the briefing, it was noted that CME was auditing MF Global in the week leading up to its bankruptcy because of the possibility that MF was going to be sold to another firm. During this audit, CME found a sizeable shortfall in funds that they first attributed to an "accounting error," but later said may have been due to an illegal transfer of funds.

On Oct. 31, 2011, MF Global filed for bankruptcy protection, citing its $31.7 billion of debts against its $41 billion of assets, making it the eighth largest corporate bankruptcy in U.S. history. In its filing, the company also cited the fact it had made unwise decisions investing on European sovereign debt.

Customers with missing money have currently been compensated for about 72 percent of their account values, but there will not be any additional distributions until the end of the bankruptcy trustee process.

The current deadline for all commodity customers to submit claims to the trustee is Jan. 31, though MF Global's bankruptcy court was set to consider on Thursday an extension to that deadline. The deadline for all non-commodity-related creditor claims is June 2.

NAWG is continuing to monitor the MF Global bankruptcy proceedings as the investigation into the missing funds continues, and NAWG staff attended the briefing this week. The bankruptcy will also be a topic of discussion at NAWG's upcoming winter committee and Board meetings.

DV Notes: We’ve all known some pretty poor managers … but to misplace $1 billion dollars. I would say something is rotten in Denmark.

New USDA Program To Assist Beginning Socially Disadvantaged Farmers Buy Land

U.S. Department of Agriculture (USDA) Farm Service Agency (FSA) Administrator Bruce Nelson today announced today a new rule that expands loan opportunities for beginning and socially disadvantaged farmers and ranchers, while also establishing a new Land Contract Guarantee Program.

The rule provides additional flexibility allowing FSA loan officers to consider all prior farming experience, including on-the-job training and formal education, when determining eligibility for FSA for farm operating and ownership loans.

It also expands a previous pilot program, the Land Contract Guarantee Program, from six states to all 50 states.

This program is designed to encourage farmers and ranchers to sell their property to beginning and socially disadvantaged (SDA) farmers and ranchers through the use of seller financing.

"USDA continues to find ways to improve our services for farmers and ranchers by streamlining processes, accelerating delivery, and using innovative solutions to 21st century agricultural challenges," said Nelson.

"These improvements demonstrate FSA's commitment to helping the next generation of America's farmers and ranchers participate in our nation's agricultural economy. The new flexibility also enlarges the pool of potential farmland buyers, which is important to young, beginning and socially disadvantaged farmers who start out or operate without established credit."

The changes in eligibility announced today will increase access for farmers and ranchers to FSA loans and credit assistance. The new rule enables landowners to sell their farmland to the next generation on a contract for deed with a 90-percent guarantee against losses to the seller. Alternatively, the agency can provide a guarantee of three years' amortized loan installments, plus payment of real estate taxes and hazard insurance premiums for the same three-year period.

U.S. agriculture is currently experiencing its most productive period in decades thanks to the productivity, resiliency, and resourcefulness of America's producers. The improvements outlined today will help producers and businesses maintain this competitive edge. In late 2011, FSA announced a series of additional process improvements that included quicker disaster assistance and less reporting dates. Details follow:

•USDA is reviewing comments on a proposed rule to streamline the process for its Secretarial Disaster Designation, allowing farmers and ranchers devastated by natural disasters to obtain emergency loans and other assistance faster than before. Streamlining the process from six steps to two will enable USDA to help those in need in an expedited manner. Additionally, the proposed rule can help to ensure all eligible disaster counties receive a designation.

•USDA established 15 common Acreage Reporting Dates (ARDs) for farmers and ranchers participating in FSA and Risk Management Agency (RMA) programs. The common reporting dates will reduce the reporting burden on producers and also help to reduce USDA operating costs by sharing similar data across participating agencies. Before the streamlining, RMA had 54 ARDs for 122 crops, and FSA had 17 ARDs for 273 crops.

More information on the new Land Contract Guarantee Program and the other changes are available at local FSA offices nationwide. Information about Farm Loan Programs and FSA loan qualifications can be found at www.fsa.usda.gov.

The Obama Administration, with Agriculture Secretary Vilsack's leadership, has worked tirelessly to strengthen rural America, implement the Farm Bill, maintain a strong farm safety net, and create opportunities for America's farmers and ranchers. U.S. agriculture is currently experiencing one of its best years in decades thanks to the productivity, resiliency, and resourcefulness of our producers. Today, net farm income is at record levels while debt has been cut in half since the 1980s. Overall, American agriculture supports 1 in 12 jobs in the United States and provides American consumers with 86 percent of the food we consume, while maintaining affordability and choice. The Obama Administration has aggressively worked to expand export opportunities and reduce barriers to trade, helping to push agricultural exports to record levels in 2011 and beyond. Strong agricultural exports are a positive contribution to the U.S. trade balance, support nearly 1 million American jobs and boost economic growth.

Source: USDA news release

DV Notes: Are you curious what qualifies a person as socially disadvantaged. Is this someone without friends, neighbors, and facebook page? We were curious too. A quick call into the USDA’s Isabel Benemelis provided some clarity, “A socially disadvantaged farmer or rancher is a group whose members have been subject to racial, ethnic or gender prejudice because of their identity as members of a group without regard to their individual qualities. These groups consist of American Indians or Alaskan Natives, Asians, Blacks or African-Americans, Native Hawaiians or other Pacific Islanders, Hispanics and women.”

The Tallgrass Commodity Outlook

The corn market has shown signs of strength due to a weakening dollar and export activity recently. With that being said, local commodity markets, depending on the commodity, have continued to weaken surprisingly. This is a direct result of a high volume of cattle being shipped to the packers. However, DDG has slowly come down in price in the past few weeks because of the decline in demand from these yards. Calves continue to roll into the feedyards and replenish the numbers but with the warmer weather, inclusion rates aren't increasing like they would with cold weather that we normally have during this time of year. On the other hand, wet distillers values continue to stay high and look to stay that way for the remainder of the "feeding season". There continues to be a substantial amount of hay trading going on with the majority coming out of the north, even as far as Canada, being shipped down into the drought sticken states. As long as cattle stay high, producers will continue to pay these higher prices for byproducts out of the plants. The lower protein commodities such as midds and corn gluten are probably the best buy currently and have come down the most since the USDA came out with their report a couple weeks ago. Lower pricing on those particular commodities is also due to a very mild winter that I mentioned earlier. The only thing that could cause these markets to move drastically would be interest in the export market but we don't forsee this making too much of a difference in the cash markets.

Source: Rodney Derstein, Tallgrass Commodities rodney@tallgrass.us

Did you know?

As of press time, 4 tickets in Section 113 row 3 (approximately 50 yard line) at the Lucas Oil Stadium in Indianapolis on February 5 for the Super Bowl XLVI could be yours for just $61,372. Click here to order.

Video Feature: Processing Mexican Cattle for the USA

Ever wonder about the procedure for importing or exporting cattle across the US / Mexican border? Farm Radio personally Kyle Bauer of KFRM 550 AM gives a in-depth look in this week’s video feature.

Tama Pack Iowa Packing Plant To Reopen in June

City awaits jobs to be gained in slaughterhouse's reopening.

Iowa cattle producers hailed news of the spring reopening of the old Tama Pack slaughterhouse, closed since 2004, as an indication that the growth in the state’s cattle industry can result in more jobs and economic development.

Roy Wiggs of Omaha, head of an investment group that bought the plant and has been preparing for the opening, said the opening would be “around June.”

Mayor Dan Zimmerman of Tama said city officials have learned that the 106,000-square-foot plant plans to begin with a custom kill of 50 to 80 head and gradually expand to a slaughter of 800 cattle per day. The plant will eventually hire 350 employees.

“People here are happy, but they’re also a little leery because the plant has been opened and closed so many times,” said Zimmerman.

The plant was built in 1971 and operated under various ownerships until it was closed in 2004, putting about 500 people out of work, after the mad cow disease scare shut off U.S. exports.

Both the Iowa Cattlemen’s Association and the Iowa Farm Bureau had made investments in or lobbied for state aid for the Tama plant over the years to provide a central Iowa market for cattle. The market weakened in 1996 with the closing of the Monfort plant in Des Moines.

But since the 2004 Tama closing, the state has bucked the nationwide trend in lower feedlot placements.

Iowa’s cattle feedlot population has almost doubled from 350,000 head in December 2001 to 610,000 head last month, according to U.S. Department of Agriculture reports. That still is below the 1.7 million head on Iowa’s feedlots in 1969.

Iowa was the nation’s largest producer in 1969 with more than 7 million cattle. The Iowa herd has since shrunk to about 4 million head as the cattle-feeding industry expanded in Texas and the Southwest.

Iowa is now the nation’s fifth-largest cattle-feeding state behind Texas, Nebraska, Kansas and Colorado.

The feedlot number is crucial because the feedlots are where cattle spend their last four months of life, eating a rich diet to bulk up to the requisite 1,300 pounds before slaughter.

A nearby slaughterhouse makes a feedlot more attractive to sellers of younger cattle ready for feeding. The rising price of corn, which has tripled since 2005 to $6 per bushel, makes those feedlots located near cornfields more economical.

“Iowa has the advantage now because our feed costs are relatively lower,” said Nevada cattleman Bill Couser, who like most Iowa cattlemen doubles as a corn farmer.

Read more …

Source: Dan Piller, DesMoinesRegister.com

DV Notes: With all the contraction going on in the packing industry this can only be seen as a positive sign.