It All Depends On The Weather

Transcription

North Central
News
Volume 9, No. 3 • 3rd Quarter 2013
IT ALL DEPENDS ON THE WEATHER
By: Scott Nelson, Farm Manager
Wow, I thought last year’s
weather was crazy, but this
year appears to be another
kind of crazy! Last year’s wet weather lasted until
about mid-June. This year it lasted until about the
first of July, when the rains stopped. We had a cool
July and most of August and then it turned hot. I
want to say warm but, for me, it was just plain hot.
In addition, most of the corn and soybean crops
were planted later than they were in 2012. For
those of you living in Minnesota, remember
that snow storm on May 1st that dumped 16-18
inches of snow in southeastern Minnesota? It also
dumped a substantial amount of rain across the
rest of the state. A lot of the corn crop in Minnesota
was planted May 13th through the 16th, two to
three weeks later than average.
Fortunately the wet area did not cover the whole
Corn Belt. The states that were affected were
Minnesota, Iowa, western Illinois, North Dakota,
South Dakota, and Wisconsin. The states of
Indiana, Ohio, and the eastern half of Illinois appear
they will have a bumper crop.
The August USDA Crop Report came out with a
projected national corn yield of 154.4 bushels per
acre and a soybean yield of 42.6 bushels per acre.
Most feel because of the hot weather that we have
had in the last half of August and first week of
September these yields may have been the high and
will have to be adjusted down.
With this in mind, you will find articles in this issue
that talk about weather and crop conditions in the
areas where we manage farms.
The New Ulm office manages farms in Iowa as far
north as Spirit Lake, down to Storm Lake, over to
Waterloo and back north to the Minnesota border.
It is hard to make any generalization about this
crop because where it was wet, it was very wet and
the crops were planted later. This was especially
true in the northeastern portion of Iowa and
southeastern Minnesota where there was quite a
bit of land that was not planted.
In some areas the crops look good, but need time to
mature. In other areas, the crops don’t look good at
all. This is especially apparent where the farmers
pushed to get the crop in the ground even though
it was too wet, and now it has turned dry. The crop
as a whole in Iowa will be poorer than it was a year
ago. Soybeans look especially hard hit because of
the late planting and lack of rain in August.
The south central area of Minnesota, where the
majority of our managed properties are located,
does not look too bad. The corn crop looks better
than the soybean crop at this time. The cool
weather in July helped pollination, and ear and
kernel development has been good. The stands
look to be good also. However, it is hard to look
over a field of corn right now to see how areas that
had water standing at one time are doing. We see
yields similar to slightly better than last year.
It All Depends on the Weather - continued on Page 2
North Central News 1
It All Depends on the Weather - continued from Page 1
The sweet corn harvest started in mid-August
and as in the past, there seems to be a correlation
between sweet corn and field corn. Early reports
from the New Ulm area, where some of the tenants
grow for Del Monte, would indicate a good corn
harvest.
The bigger question will be the yield of soybeans.
We scouted some of the soybean fields we manage
and from the top looking down, they look good.
But when several plants are pulled and the pods
are counted, we seem to lack the “normal” amount
we have seen in the past. On top of this, in some
fields there seems to be a high number of pods that
contain only one or two soybeans rather than the
normal three.
Soybeans are very hard to estimate, corn is much
easier. However, in walking soybean fields, looking at pod counts, and the filling of the pods, the
numbers just don’t seem to be there as in years
past. This makes us concerned that the yield on
soybeans will not be as good as a year ago.
Last year I ended my update with an old saying
“soybean yields are made in August”. I believe that
to still be true.
With that said, I will end this year’s update with
another old saying. “It all depends on the weather”.
And as always, farming depends on the weather.
West Central Crop Conditions
By: Leon Carlson, AFM
After adequate to surplus
spring moisture, later planting weather conditions, cool
temperatures in late July, then
heat and very little rainfall in late August we have
once again been brought to drought conditions in
western and northwestern Minnesota.
hit part of the state is on the western border where
very minimal rainfalls have been received. There
are also several sand pockets (northern Kandiyohi,
Stevens and Pope Counties) where yields will take a
drop. Overall, both corn and soybean yields will be
down for many areas as compared to 2012.
The drier than normal August, following a drier
than normal July, produced a combined rainfall deficiency for the 2 months that ranged 5 to 7 inches
below normal, while daily temperatures ranged 1
to 4 degrees above normal.
While the higher temperatures have helped hasten
maturity in the corn and soybean crops, the lack of
moisture will cut yields and test weights. In late
July there was great concern for an early frost, but
that concern has now changed to a lack of production.
Currently the U.S. Drought Monitor shows 53% of
the state in moderate to severe drought. The worst
sAppraisals
sAgricultural Property Management
sAgricultural Real Estate Sales
sCommercial Property Management
sCommercial Leasing
Olivia
(800) 545-6227
Faribault
(866) 332-8211
New Ulm
(507) 359-2004
www.ummc.co
Crops in Southeast Minnesota
By: Farryl Kluis, Farm Manager and Certified General Appraiser
The crops in southeast
Minnesota are more varied than
this old man has ever witnessed.
Some land was nearly fit and
corn was planted only a little late. Those parcels tended
to have much better internal drainage. Other land that
had more moisture, poorer drainage, or the operator
wanted better planting conditions, either never got
planted or was planted very late.
The soybean crop looks worse than the corn. Much of
the crop was planted very late and into far less than
ideal soil condition. Many of these late planted fields
now have a lot of late season weeds growing in them.
Many fields, and in some cases, nearly all the farm was
“prevent planted” and a crop was either never planted
or a cover crop was planted late. Due to soil conditions,
the weeds grew very fast and tall. While eventual
chemical weed control was very effective, tall, dead,
brown weeds can be seen across the fields.
However, many corn and soybean fields did get planted
and look pretty good from the road. These fields likely
have lower areas with no crops or poor crops on them,
but the rest of the field looks good. Those good acres
have good stands with large, long, thick ears that are
beginning to dent.
This area has many alfalfa fields for the dairy industry.
Many of the alfalfa field’s stands are varying from very
poor to having no live plants due to severe winter kill.
The lack of alfalfa has many farmers haying roadside
ditches and even CRP acres to have something to feed
the dry cows and young stock.
Nearly all farmers are hoping for a later than normal
killing frost. Many corn farmers expect to dry corn
for the first time in recent years. Corn drying brings
additional expense and basically slows the harvest
process.
The crop prices offered the farmers varies greatly
depending on delivery date. Those farmers with corn in
their bins or who are able to harvest early can sell in the
$6.00 per bushel range. The corn harvested later has a
local market price of $4.50 per bushel. The difference
in soybean quoted prices has about the same $1.50 per
bushel discount between cash and new crop price.
With the many acres of prevent plant, the drainage
contractors have been busy all summer and some are
booked well into fall with drainage work. The local
FSA offices are scrambling to keep up with paperwork
required before new or improved drainage can start.
New USDA Farm Bill. . . When?
By: Dennis Schmidt, AFM
After writing about a new farm bill over the past year or so, I thought we would be able to
give you some final details by now. Not so!
The Senate did pass a farm bill on June 10, 2013, entitled the “Agriculture Reform, Food and Jobs Act of 2013”.
The House then attempted to pass new legislation, but it was defeated in their first attempt. On July 11 they
passed a new version entitled “Federal Agriculture Reform and Risk Management”. The key difference in their bill
is that it did not contain any food assistance provisions that are a part of the senate’s legislation.
Uncertain of the path this is taking, there is not much more that can be said at this time. All our agricultural
commodity groups are encouraging legislators to work on this issue and get new legislation passed rather than
simply extending old legislation.
Real Estate Offerings
FARMLAND AUCTION
NOBLES COUNTY, MN
81.78 acres more or less
Lorain Township
SEALED BID AUCTION
OCTOBER 8, 2013 10:00 A.M.
WORTHINGTON EVENT CENTER
Benefits/Features:
• 78.97 tillable acres
• Productive soils
• I-90 development potential
• Listing agent: Greg Thomas (507) 359-2004
FARMLAND
NICOLLET COUNTY, MN
Courtland W Township
Benefits/Features:
• Level topography
• Productivity Index: 88.2
• Nice “Add-on” tract
DEVELOPMENT PROPERTY
BROWN COUNTY, MN
Benefits/Features:
• Outside city limits of
New Ulm
• Presently zoned light industrial
RECREATIONAL PROPERTY
BLUE EARTH COUNTY, MN
Cobb Creek Hunting Land
45.1 Surveyed acres
Danville Township
Benefits/Features:
• Wooded
• Cobb Creek and ridge on south end
• Level topography on north end
• Good deer, turkey and duck hunting
RICE COUNTY, MN
40 acres, Wetland and hillside
Morristown Township
$125,000 list price
Benefits/Features:
• Two building rights
• Large pond, acres of wetland, woods
• Excellent habitat for ducks, geese, turkeys,
deer and other wildlife
• Listing agent: Farryl Kluis (507) 334-3934
STEVENS COUNTY, MN
240 acres, Wetland Reserve Program
Stevens Township
$1,100 per acre, possible CFD
Benefits/Features:
• Can be divided into 80 and 160 acres
• Wetland development in progress
• Excellent habitat for small game birds and
ducks
• Listing agent: Leon Carlson (800) 545-6227
We have detailed information and brochures on all offerings. To receive information by mail, please contact us at one of the following
offices: New Hope (763) 535-4914; New Ulm (507) 359-2004; Olivia (800) 545-6227 or Faribault (507) 334-3934. The information you
will receive is from sources deemed reliable, but is not guaranteed by agent. Package is subject to prior sale, price change, correction
or withdrawal.
This newsletter is intended as general information to our clients and friends on agricultural subjects. It is not intended to render
advice; such advice can only be given when related to actual situations. If you have any questions, please contact Jim Thomas,
Owner, President of UMMC at 507-359-2004.
COMMERCIAL PROPERTY
DUNDAS, MN
1736 Millersburg Blvd. W
$3,918,000
Benefits/Features:
• 130.6 acres, more or less
• Half mile frontage on I-35
• Rolling land, minimal trees
• Zoned commercial
• Listing agent: Gary Spillman (507) 334-3934
DUNDAS, MN
10205 Bagley Avenue
$4,230,000
Benefits/Features:
• Topography level, sloped
• Along 35W, rezoned Highway Commercial
• Zone designated for warehouse/distribution use
MEDFORD, MN
South edge of Medford
$114,900
Benefits/Features:
• 8,000 square feet warehouse
• Along I-35
Check our website for more details on
these listings!
www.ummc.co
MINNEAPOLIS, MN
Plymouth Avenue II
1001 Plymouth Avenue N
$2,100,000
D
L
O
S
Benefits/Features:
• Easy access to I-94
• Easy access to Hwy 55
• Minutes from Downtown Minneapolis
• Excellent stand alone office/flex building
• +/- 65 Parking stalls
RESIDENTIAL PROPERTY
FARIBAULT, MN
256xx Eaton Avenue
2 acres
$40,500
Benefits/Features:
• Great location for new home
• Paved access
• Horses/livestock permitted
• Between Faribault and Medford
FARIBAULT, MN
489xx E 260th Street
2.5 acres
$37,500
Benefits/Features:
• Superior country living
• 1.3 acres of woods
• Between Faribault and Medford
• Less than a hour to Burnsville Mall
UMMC Staff on the Go
Minnesota Chapter ASFMRA Summer Tour
Each summer our professional organization for farm managers and appraisers hosts a tour in various
locations around the state of Minnesota. This offers us an excellent way to stay updated on what is
happening to agriculture around our great state. This year’s summer tour was located in southeast
Minnesota in the Red Wing area. We had a day of classroom presentations which included a presentation
from Archer Daniels Midland (ADM) and their local flax crushing facilities located right on the Mississippi.
We also had a presentation from the Army Corp of Engineers on the Locks and Dams on the Mississippi
River. We had the opportunity to learn about Frac Sand Mining, which is taking place in the Mississippi
River Valley.
Friday’s tours included stops at the Schafer Farms Inc. Beef and Hog Farm, Central Livestock Association’s
sales barn in Zumbrota, the Falconer Vineyard outside Red Wing and finally a commercial fishing and fish
processing plant near Nelson, Wisconsin.
Those attending all or part of the summer tour from UMMC were Farryl Kluis, Leon Carlson, Scott Nelson,
Jeremy Fluegge, and Denny Schmidt.
Fall Farm Management Seminar
American Society of Farm Managers and Rural Appraisers (ASFMRA)
The fall seminar of the Minnesota chapter of the ASFMRA was held at the Southwest Research and
Outreach Center, Lamberton, MN, on August 27. Those attending from UMMC were Leon Carlson,
Farryl Kluis, Scott Nelson, and Denny Schmidt. We received agronomic updates from Bruce Potter, a
University of Minnesota staff member at the Lamberton station, along with presentations from industry
representatives from BASF and DuPont
Farmfest 2013
Staff from Upper Midwest Management participated in the 2013 IDEAg Minnesota Farmfest show August
6, 7, and 8th at the Gilfillan Estate in Redwood County, Minnesota. This year’s total attendance for the
event reached 37,112. UMMC was located in booth 2413 of Ag tent one. We wish to thank those who
stopped by our booth to visit about our services. If you couldn’t attend this year, plan to come in 2014!
Until then, if you would like to visit with someone from our company about our services, please call one
of our four Minnesota locations (see back of this newsletter for locations). All company information is
available on our website as well at www.landspecialists.com.
The Price is Right….Isn’t It?
Denny Schmidt, Accredited Farm Manager, and Michele Schroeder, Appraiser Trainee, presented “The
Price is Right…..Isn’t It? – Land Values, Appraisals and Farmland Leasing” to attendees at the New Ulm
Community Center, New Ulm, MN. The presentation was done in conjunction with programs offered by
CAST – Community and Seniors Together. Denny and Michele presented information to help members of
the community be more aware of the need for appraisals and discussed current market rental rates for
farm land and the reasons behind the rates. The presentation allowed for questions and answers from
the attendees and was well attended.
UMMC on the Go - continued on Page 7
UMMC on the Go, continued from page 6
ASFMRA hosts Summer Education Week
Every July, the American Society of Farm Managers and Rural Appraisers (ASFMRA) hosts Summer
Education Week (SEW). This is a great opportunity for appraisers and farm managers to take continuing
education and qualifying education classes for their needed profession. The week also offers the
opportunity for appraisers and farm managers to network and learn more about new trends, new
technology and changes in agriculture industry through tours and speakers. Michele Schroeder,
Appraiser Trainee, and Farryl Kluis, Accredited Rural Appraiser, attended SEW in Omaha, Nebraska.
Farryl attended the event to earn continuing education as an appraiser while Michele attended for a
qualifying education class with an exam at the conclusion of the class. Attending events like SEW allows
UMMC employees to receive top-notch education to be the professional you contact when their services
are needed.
Appraising Natural Resources
Leon Carlson, Accredited Farm Manager and Certified General Appraiser; Farryl Kluis, Accredited Rural
Appraiser, and Michele Schroeder, Appraiser Trainee, attended a class entitled “Appraising Natural
Resources.” This class was offered in conjunction with the Summer Tour of the Minnesota Chapter of
the American Society of Farm Managers and Rural appraisers in late June in Red Wing, Minnesota. The
course was taught by John Widdoss, Accredited Rural Appraiser, of Spearfish, South Dakota, one of the
nation’s leading appraiser and valuation experts of rural estate and real property rights. The course
offered information about appraising unique natural resources including mineral (gold, gravel, frac sand,
etc.) valuation, water rights, timber valuation, geothermal/solar valuation, and wind rights.
Ag Professionals Recognized
DENVER,CO – August 27, 2013 Dennis A. Schmidt, AFM,
and Leon Carlson, AFM, with Upper Midwest Management Corporation in New Ulm, MN, were recently recognized by the American Society of Farm Managers and
Rural Appraisers (ASFMRA) for 30 years of Membership
within the Organization. Scott Nelson, Farm Manager,
with Upper Midwest Management Corporation, New
Ulm, MN, was recognized for 25 years of Membership
within the Organization. These three are agricultural
professionals who provide services for clients which
may include farm and ranch management, rural appraisals, and/or agricultural consulting.
The ASFMRA represents nearly 2,000 agribusiness professionals across the U.S. and Canada, who provide farm
or ranch management, rural appraisal and appraisal
review or agricultural consulting services. Professional
managers represent owners of over 25 million acres of
U. S. farmland and provide the direct management of
these operations. Professional rural appraisers provide
valuation estimates on over 50 million acres of farm,
ranch, and natural resources lands each year.
The ASFMRA, founded in 1929, is the pioneer organiza-
tion in rural property issues and education. Its focus is
to create and maintain a professionally trained group of
AFMs (Accredited Farm Managers), ARAs (Accredited
Rural Appraisers), RPRAs (Real Property Review Appraisers), and AACs (Accredited Agricultural Consultants) who are capable of providing expert guidance
and assistance to people who own and/or operate
agricultural lands and rural resource properties.
Through the long standing members, such as Schmidt,
Carlson, and Nelson, the ASFMRA is able to continue to
provide superior education, accrediting, publications,
and networking opportunities for professionals in rural
appraisal, management, and consulting assignments.
ASFMRA congratulates these individuals and thanks
them for their continued support. They are affiliated
with ASFMRA, the largest and oldest professional association that provides opportunities for development
through the highest quality educational and meeting offerings and a strict standard code of conduct and ethics
for all of its members.
Congratulations Dennis, Leon and Scott!
Upper Midwest Management Corp.
PO Box 834 Who did I just talk
New Ulm, MN 56073-0834
to?... “Who’s Who” at UMMC
PRSRT STD
PRSRT
STD
US
U.S.POSTAGE
Postage
PAID
PAID
MANKATO, MN
PERMIT 609
Mankato, MN
Permit No. 47
New Hope Office
4900 Hwy. 169 N, Suite 100
New Hope, MN 55428
763-535-4914 New Ulm Office
1314 Westridge Road
New Ulm, MN 56073
507-359-2004
Olivia Office
2510 Lincoln Ave. W, Ste. 4
Upper Midwest
Olivia, MN 56277
Management
320-523-1951
www.ummc.co
Faribault Office
1400 Cannon Circle, Suite 2
Faribault, MN 55021
507-334-3934
Ag Services
7165 US Route 35E
Jamestown, OH 45335
937-675-7511

It All Depends On The Weather

Transcription

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March 30, 2010 – Volume 5, Issue VII Contents 