2014 Land Seminar Well Received

VOLUME 7
ISSUE 1
WINTER
2014
2014 Land Seminar Well Received
Wendy Forthun, ALC, Vice President, Broker, REALTOR®
Our winter land seminar sure was
the place to be on Tuesday
February 18th. We had 65 land
owners from around the country,
4 staff, and 2 guest speakers all
gathered together in Mesa AZ for
another exciting, informative
seminar.
Roger Heller and Gary Hotovec started off the
morning session with land prices and rent updates
for central MN, eastern SD and eastern ND. The
prices in Roger & Gary’s primary county, Renville,
were ranging from $7,500/acre for average quality
land to upwards of $11,000/acre for high quality
land. Rents not changing much from last year, still
in the $225 - $425/acre range.
Mark Schultz
Mark Schultz was liked by so many in years past,
we invited him back again this year. For those that
don’t know Mark, he is a Chief Market Analysis
with Northstar Commodity in Minneapolis. He is
often quoted on Bloomberg Network, has also been
a guest on CNBC and quoted in the Wall Street
Journal. Mark brings a vast knowledge of the
global fundamental factors in the grain and
livestock markets. His “The World Is Hungry”
presentation covered the following:





View of the global economy
Grain production estimates for 2014
Lower US dollar index should support greater
export demand
Wheat prices are gaining on corn and why this
is good news for corn demand
Livestock producers are making money
Kirk Swenson and I led the afternoon session by
covering updated land prices and rents for south
east MN and NE. In our primary county, Dodge,
the land sales had sold in the range of $5,300/acre
for lower to average quality land up to $10,000/
acre for higher quality land. Rents have remained
steady in the $275-$350/acre range. We also
covered land prices for general Nebraska land.
Those prices ranged from $5,900/acre for dry
cropland, $8,100/acre for irrigated land and about
$700/acre for pasture land.
This year we had a
second guest speaker at
the seminar. We were
privileged to have Jay
Buck CPA/ABV, CVA,
Principal at the Tucson
office of Clifton Larson Jay Buck
Allen,
LLP.
Jay
specializes in tax consulting with corporations,
partnerships, LLC’s, along with individuals, estates
and trusts. His presentation was “Tax Strategies for
Landowners” which covered the following:






Understanding the new 2013 income tax rates
Dealing with the new 3.8% tax on net
investment income
The end of the first year depreciation?
Installment sales: the solution to high rates?
Like kind exchanges for farm real estate
Family partnerships to hold the land together
Continued on pg. 5
2013 Farmland Sales & Auctions
Average Sale Price Per Acre By County
$12,000
Big Stone County, MN
Cotton Wood County, MN
$10,000
Dodge County, MN
Grant County, MN
Hartley County, TX
$8,000
Lake of the Woods Co, MN
Lyon County, MN
$6,000
McLeod County, MN
Olmsted County, MN
Redwood County, MN
$4,000
Renville County, MN
Stevens County, MN
$2,000
Swift County, MN
Traverse County, MN
$0
Yellow Medicine County, MN
Continued on pg. 3
2014 National Land Conference Attracts Land Industry Experts - from the REALTORS® Land Institute Press Release
Wendy Forthun, ALC, Vice President, Broker, REALTOR®
The REALTORS® Land Institute (RLI), an affiliate of
the National Association of REALTORS®, continued
its commitment to build knowledge and promote
business. This year’s conference was March 12-14 in
the historic town of Charleston, SC with over 240
attendees. It attracted professionals from across the
nation to learn from experts, connect with industry
peers, and make deals.
Attendees expanded their knowledge base from world
renowned experts on hot topics including the economy,
energy, hydraulic fracturing, and mineral rights;
marketing and new technology; land conservation
opportunities for land owners; 1031 exchanges that
benefit land owners, and international business
opportunities.
Accredited Land Consultants (ALCs) met dur ing a
preconference meeting with Bill Eshenbaugh, ALC, to
discuss how to utilize the ALC designation in business
2
strategies and provide the best service to their clients.
The Accredited Land Consultant (ALC) designation is
an indication of the land professional who is the most
accomplished, experienced, educated, and highest
performing land expert.
It was an amazing conference that hit record attendance
and has been claimed as the best conference yet for
professionals in the land business. Attending these
conferences is not only advantageous for ourselves as
professionals but also to our clients, as the more we
advance and learn in our industry, the better we are
able to service our client’s agricultural needs and
become
the
true
“Experienced
Farmland
Professionals”. Until next year’s event in Tucson AZ, I
plan to implement what I have learned and will
continue to grow as a land broker!
To learn more about what RLI is or what it takes to
become an ALC, please visit www.rliland.com.
Sven and Ole didn’t win the ice fishing contest, but they think the other guys cheated. They cut holes in the ice.
Ole took Lena fishing. “Ole, do ya haf anodder cork dat I can use as a bobber? Dis von keeps sinkin’.”
2013 Farmland Sales & Auctions
Continued from pg. 2
Location
Renville County, MN
Renville County, MN
Redwood County, MN
Lake of the Woods Co, MN
& Roseau County, MN
Swift County, MN
Swift County, MN
McLeod County, MN &
Sibley County, MN
Hartley County, TX
Traverse County, MN
Lake of the Woods Co, MN
Traverse County, MN
Olmsted County, MN
Traverse County, MN
Traverse County, MN
Stevens County, MN
Grant County, MN
Traverse County, MN
Traverse County, MN
Stevens County, MN
Yellow Medicine Co, MN
Lyon County, MN
Cotton Wood, MN
Yellow Medicine Co, MN
Yellow Medicine Co, MN
Big Stone County, MN
Dodge County MN
Big Stone County, MN
Swift County, MN
Swift County, MN
Swift County, MN
Stevens County, MN
Swift County, MN
Swift County, MN
Big Stone County, MN
Big Stone County, MN
Swift County, MN
Swift County, MN
Swift County, MN
Swift County, MN
Traverse County, MN
Buyer
Investor
Investor
Farmer
Sold
1/25/13
1/25/13
1/25/13
Sale Price
$1,673,438
$822,987
$1,312,145
Acres
157.5
88.02
154.37
$/Acre
$10,625.00
$9,350.00
$8,500.00
Type of Sale
Auction
Auction
Auction
Investor
Farmer
Farmer
3/15/13
5/28/13
5/28/13
$20,250,000
$1,445,360
$446,685
6,300
192.1
51.5
$3,214.00
$7,524.00
$8,673.00
Private Sale
Auction
Auction
Farmer
Farmer
Farmer
Investor
Farmer
Farmer
Farmer
Farmer
Farmer
Farmer
Farmer
Farmer
Investor
Farmer
Investor
Investor
Farmer
Farmer
Farmer
Farmer
Farmer
Farmer
Farmer
Farmer
Farmer
Farmer
Farmer
Farmer
Farmer
Farmer
Investor
Farmer
Farmer
Farmer
5/29/13
5/30/13
6/10/13
7/1/13
8/8/13
8/29/13
9/24/13
9/25/13
9/25/13
9/25/13
9/25/13
9/25/13
9/25/13
9/27/13
9/27/13
10/7/13
10/15/13
10/15/13
10/15/13
10/15/13
10/31/13
11/1/13
11/1/13
11/1/13
11/15/13
11/15/13
11/15/13
11/15/13
11/15/13
11/15/13
11/15/13
11/29/13
12/20/13
12/27/13
$329,745
$10,000,000
$1,115,694
$325,500
$1,250,000
$200,000
$235,000
$2,902,076
$1,400,800
$800,000
$954,586
$1,219,520
$1,046,765
$716,880
$1,351,360
$405,000
$106,641
$373,359
$200,000
$1,220,770
$515,000
$9,568,965
$1,034,483
$1,386,553
$1,565,600
$1,287,088
$514,955
$1,673,470
$586,985
$1,334,880
$1,600,000
$290,000
$257,500
$6,297,641
$80,017,432
140.2
3,400
163
310
138.01
35
81.45
314.81
160
160
291.91
160
199.27
80
160
150
45.71
160
23.73
141.95
201.74
1,067
195.6
156
200
142
96.61
235.69
156.32
160
358.8
90.3
64
782.91
17,166
$2,351.00
$2,941.00
$6,844.00
$1,050.00
$9,057.00
$5,714.00
$2,885.00
$9,218.00
$8,755.00
$5,000.00
$3,270.00
$7,622.00
$5,253.00
$8,961.00
$8,446.00
$2,700.00
$2,332.00
$2,333.00
$8,428.00
$8,600.00
$2,552.00
$8,968.00
$5,288.00
$8,888.00
$7,828.00
$9,064.00
$5,330.00
$7,100.00
$3,755.00
$8,343.00
$4,459.00
$3,211.00
$4,023.00
$8,043.00
Private Sale
Private Sale
Auction
Private Sale
Private Sale
Private Sale
Private Sale
Auction
Auction
Auction
Auction
Auction
Auction
Auction
Auction
Auction
Private Sale
Private Sale
Private Sale
Auction
Private Sale
Private Sale
Private Sale
Private Sale
Auction
Auction
Auction
Auction
Auction
Auction
Private Sale
Private Sale
Private Sale
Auction
Ole got a great deal on snow tires, don’t ya know. It’s yust too bad dat dey melted on his vay home.
Ole tinks dat vit all da cold air comin’ in from Canada in da vinter, dey should yust veaterstrip da border.
3
Cooking With Jan
Mom’s Easy Hotdish!
Jan Schley, GRI, REALTOR®
Ingredients:
1 lb hamburger, 1 diced onion, 3
stalks celery diced, 1/2 cup
uncooked rice (not minute), 2 cans
cream of mushroom soup, 1 can
water, 1 can bean sprouts.
Method:
Brown meat and onion, add other ingredients. Bake
350° for about 2 hours.
Serve with chow mein noodles and soy sauce.
Did you know Minnesota is
the “Hotdish Capital” of the
50 States? There are
thousands
of
different
hotdish recipes to choose
from. (most other states call
them casseroles) Enjoy
Mom’s Easy Hotdish!
I got to thinking about that and came up with a few
good reasons why. First most of us come from farm
backgrounds; our grandparents and parents settled
down on the farm and that is where they stayed,
passing it on to the next generation. It is a great
place to live, raise a family, even with all the ups and
downs that go along with farming. Farmers have a lot
of pride in their profession that keeps them going.
My family is proud to be one of those offspring.
Minnesota has four seasons; there are so many
different activities that can be enjoyed, it’s never
boring. We are known for our 10,000 Lakes,
Minnesota Twins, Vikings, Timberwolves and
Wilds, those recreational things can give us much
enjoyment.
We also have County Fairs, State Fair, Zoos,
Museums, Theater, Golf courses, College and High
school events, or just having a picnic in our back
yard with family and friends.
Winter Wonderland 2014 in Minnesota.
We all seem to be experiencing some drastic weather
related conditions. Wind chill factors, below zero
temperatures, snow, frozen pipes, shortage of
propane that has sky rocketed the price. Most of our
Minnesota conversations seem to be about our
weather. It is often said “don't know why we live
here”.
We are fortunate to have the Mayo Clinic health
systems nearby. I am sure if you made a list you
could come up with many good reasons why we live
in Minnesota.
It is easy to get discouraged when we have a long
cold snowy winter like this year. Remember spring is
on the horizon. Minnesotans are known as tough and
we will get through this together. We are Minnesota
NICE. Happy Thoughts to you.
Ye Old Required Disclaimer:
This newsletter is intended as general information to our clients and friends on agricultural subjects. It is not intended to render specific advice;
such advice can only be given when related to actual situations and will be different for each person. If you have any questions, please contact
“The Experienced Farmland Professionals” today at:
Kasson: 507-634-7033 or [email protected]
4
Olivia: 320-523-1050 or [email protected]
Sunshine is delicious, rain is refreshing, wind braces us up, snow is exhilarating; there is really no such thing as
bad weather, only different kinds of good weather. ~ John Ruskin
Auctioneer’s Corner
Spouse Inducted Into MN State Auctioneers’ Auxiliary Hall Of Fame
Gary Hotovec, Auctioneer, REALTOR®
On January 9-11, 2014, my wife
Holly and I attended the Minnesota
State Auctioneers Convention at the
Sheraton West Hotel in Minnetonka,
MN. We have attended the
convention for 30 years. I attended
seminars such as: Auction Law,
How auctioneers get the job done
like no other method of marketing and the seminar I
really enjoyed was "Still Standing" by John Kriesel,
an injured vet from the Iraq war. John's message was
one of motivation and positive thinking, topics we all
enjoy and always need more of.
At the convention, Holly was inducted into the
Minnesota State Auctioneers Auxiliary Hall of Fame.
It was hard for me to keep it a secret from her for
about three months beforehand, but I think I did
pretty well! It was a great honor for her and I am
really proud of her. Our son and daughter-in-law,
Ross and Lori, their two boys, along with Holly's
family and many of our friends from the Hutchinson,
Olivia and Danube areas attended to help surprise her
and celebrate with us.
Holly has spent many years in the Auxiliary where
she was Vice President, President, on the Board of
Directors and also was a member of the scholarship
committee, which she really enjoyed. Through these
years, we both enjoyed seeing these students finish
college and pursue their chosen professions. The
scholarships are available to any relative of a
member of the MSAA and so if any member of the
MSAA has a young relative eligible for a
scholarship, they need only to apply and follow the
list of requirements in the application process.
Criteria for being inducted into the Auxiliary Hall of
Fame was leadership, service to her community,
assistance to the MSAA and promotion to the auction
profession. Holly fit the criteria list perfectly! She is
the BEST and so very deserving of this honor! And
to think back in 1984, when I attended auction
school, she had never been to or hardly ever heard of
auction sales! Now, she believes in the Auction
Method of Marketing 100%! She is a true promoter
of the auction profession.
2014 Annual Winter Land Seminar Recap
Continued from pg. 1
Back by popular demand, the Q&A part of the
seminar was led by Gary & Roger and was another
success. It was interesting to see some of the same
questions repeated this year with much different
responses than in the beginning of 2013. I think this
information if very beneficial to not only us, as
farmland professionals, but also to the land owners.
Some of the questions included: Are current farm
earning sustainable? How many think land prices
will continue to rise? How many think farmland
prices are ready for a decline? If so, how much?
As I have said in year’s past, if you weren’t able to
join us this year, I highly recommend you save the
date on your calendar for next year! Watch future
editions of the Quarterly Combine for seminar dates
and locations. Some of the comments from the
seminar were exactly what we as a company are
trying to accomplish by holding these seminars. “A
tremendous amount of useful information”,
“Thanks, wish I’d had access years ago”, “Very
good seminar”, “Will attend next year”
Man: “That’s a strange hood ornament you have there.”
Lena: “ It’s a snow blower.”
Man: “A what?”
Lena: “Park da truck, Ole. Ve’ve finally driven far enough south.”
5
A Study In Cooperation
Roger Heller, A.F.L.B., A.F.M.
Ever since I took my first real estate
counseling
course,
I
have
encouraged the concept of a broker/
client partnership to accomplish
truly
successful
real
estate
transactions. When representing a
seller, I have always felt the
definition of a successful transaction
was much broader than simply selling a property.
Once we and the seller agree that we will represent
them in the marketing of their property, it means a
new bond has been created. In that bond, we pledge a
total commitment and allegiance to their needs and
goals. This is the reason why I have been a
proponent of practicing single agency, the exclusive
representation of a client. Perhaps the concept has
been fortified in me as a result of a parallel career in
farm property management.
The desire to develop a close relationship with our
clients is there regardless of whether the real estate
effort is a small project or a mega project or
somewhere in between.
Early in 2013, a new mega opportunity presented
itself. A potential client from Appleton, MN
contacted me, and I met with him and his wife briefly
in February. Over the next four to six weeks, he
provided a wealth of information about their
properties and the fact they were planning on putting
their ag land holdings on the market very soon.
In April, this client and I met once again. We
learned the total holding to be marketed would be 39
tracts of land in seven counties, totaling
approximately 6,500+ acres. The acres consisted of
dry acres, irrigated acres, pasture land, CRP, hunting
land, gravel deposits, lake shore, as well as a
dwelling, machine storage, bin site, drying and grain
storage equipment. This was going to be a challenge.
With such a complex listing, we knew the marketing
strategy would be as equally as complex. We
6
proposed an elaborate marketing strategy composed
of both public auctions and private treaty offerings
based on location and characteristics of each parcel.
We started by scheduling three auctions for the same
day, June 25, 2013, in Wheaton, MN offering the 11
farms in Traverse, Stevens, and Grant counties. Our
next auction was scheduled for June 27, 2013 in
Marshall, MN offering the Lyon and Yellow
Medicine County tracts in 2 parcels.
Our multi-faceted advertising campaign was put in
place immediately advertising the entire 6,500+
acres, the auction and the private treaty parcels. That
advertising was local, regional and national in scope.
The biggest single challenge was to assemble all of
the property and marketing data, proofreading, get it
into brochures, and website ready in a timely fashion.
During this period, 3 outlying parcels were marketed
private treaty. They were selected for this type of
sale because it would not have a negative impact on
the overall marketing plan.
The auctions scheduled for June 25 & 27 were held
as planned with excellent success. Holding three
auctions in one day is never an easy feat, but with
excellent co-operation by all of the Heller Group,
plus the help from the Kasson 1 Stop office, the sales
were a resounding success.
The multi-parcel
computer auction, the afternoon of June 25, worked
to perfection.
Next, we focused on the sale of the headquarters
farm. Our team was able to enter into a contract to
sell 9 of the 11 irrigated parcels and the buildings to
one buyer. That left 2 irrigated parcels and 4 dry
Continued on pg. 7
This information is from sources deemed reliable, but is not guaranteed by agent. All listings are subject to prior sale, price change,
correction or withdrawal.
What’s For Sale?
Newly REDUCED Price
Investor Opportunity
and SPRING Possession!
144± acr es with 130± tillable acr es
Greenleaf Twp, Meeker County, MN
With 3-5 Year Leaseback!
103 ± AC in Hazel Run & Stony Run Twps
Yellow Medicine County, MN
144 ± acres, with 130 ± tillable acres located south of Lichfield,
MN. This is a well located, tile drained, productive farm with
81.2 CPI.
103 ± combined acres, with 96 ± tillable acres located west of
Granite Falls, MN. Proven Farming Operation will leaseback at
$350/ tillable acre to provide solid long term returns.
160 ± AC Farmland
Shible Twp - Swift County, MN
145.86 ± tillable with 84.1 CPI
160 ± AC Farmland
Edison Twp - Swift County, MN
141.3 ± tillable acres
Currently operated as a dryland farm, however, with some
improvements, it could be operated as an irrigated farm. There
are two drainage ditches providing an outlet for tile drainage if
required.
160 ± acres with 141.3 ± tillable acres. This parcel is well
located 2 miles east of Appleton on Swift County Highway 6.
For more information about the listings above, please contact:
Roger Heller 320-522-1050 or [email protected]
Brian Fernholz 320-226-4504 or [email protected]
Gary Hotovec 612-202-5090 or [email protected]
www.hellergrouplandsales.com
A Study In Cooperation
Continued from pg. 6
land parcels in the Appleton area to be sold, plus 6
parcels clustered in a 5 mile radius about 15 miles
northwest of the Appleton headquarter unit. Those
remaining 12 parcels were then scheduled to be
offered at auction on September 10, 2013 in
Appleton. Once again the entire staff worked
diligently to get all of the sale catalogs advertising
and promotion into place.
On September 10, 2013, we held two multi-parcel
auctions. As with the earlier auction, almost all of
the parcels at the morning auction produced prices at
or above expectations. The afternoon auction was
difficult with fewer registered bidders reinforcing our
earlier analysis that the local purchasing power was
more limited in that community. Consequently, we
declared a no-sale on all 6 parcels. Soon thereafter,
the 2 remaining irrigated farms were sold to an
investor and 2 of the dry land tracts to local farmers.
Currently, two 160 acre parcels east of Appleton and
a 50 acre portion of the lakeshore property remain on
the market. All of the other originally listed farms
have been sold.
Of the 36 parcels sold, 4 parcels sold to wildlife/
conservation users, 3 parcels sold to investors, and
the balance sold to farmers.
Once again, kudos go to a total team effort. Our two
auctioneers, Gary Hotovec and Tom Gruendemann;
REALTORS® Brian Fernholz, Kirk Swenson,
Wendy Forthun, and Pat Keltgen; and support staff
Julia Hallbeck and Marissa Castillo. I am so very
proud of that group. While the team unquestionably
deserves praise, without the total cooperation of our
clients, none of our efforts would have been
successful. They truly became “partners’ in the land
marketing effort. We always encourage owner
cooperation; however, seldom do we experience this
level of effort exhibited. Our thanks to them in every
way.
Liked what you see? We have detailed information sheets and brochures on all offerings. Let us mail you information on the property(ies)
you are interested in. Call us at Kasson: 507-634-7033 or Olivia: 320-523-1050 or visit our website at www.1stop-realty.com.
7
[email protected]
“The Experienced Farmland Professionals!”
20 4th Street SE
Kasson, MN 55944
Phone: 507-634-7033
www.1stop-realty.com
[email protected]
1302 West DuPue Ave
Olivia, MN 56277
Phone: 320-523-1050
www.hellergrouplandsales.com
FARMLAND SALES - FARMLAND MANAGEMENT - FARMLAND AUCTIONS
Kirk E Swenson
[email protected]
507-634-7033
Wendy Forthun
Roger Heller
[email protected] [email protected]
507-251-1637
320-523-1050
Pat Keltgen
[email protected]
320-523-1050
Our Mission:
To handle all your agricultural real estate needs, in a
professional friendly manner, so that sellers, buyers, landlords,
and tenants have a pleasant and enjoyable experience.
Gary Hotovec
Brian Fernholz
[email protected]
612-202-5090
[email protected]
320-598-7711
Wayne Alberts
Tammy Alberts
[email protected] [email protected]
507-319-3479
507-696-0955
Jan Schley
[email protected]
507-421-8440