Southwestern Minnesota Farmland Values Decrease .2 Percent In 2019
WORTHINGTON, Minn (1/13/20) — At the end of each year for the last twenty-five years, a survey has been conducted of farm land sales in fourteen southwestern Minnesota counties.The survey reports bare farm land sales to non-related parties for the first six months of each year. Land values had been steadily increasing until 2014.After reaching record high prices in 2013, the upward trend was broken as prices declined in 2014 and continued down through 2017.The trend changed to an increased in 2018 and remain constant in 2019.The summary report for this survey is available at the county extension offices in Chippewa, Cottonwood, Jackson, Lac qui Parle, Lincoln, Lyon, Martin, Murray, Nobles, Pipestone, Redwood, Rock, Watonwan and Yellow Medicine Counties.This year the decrease across the fourteen counties averaged .2%. SW Minnesota land prices peaked at $8,466 per acre then declined in through 2017 to $6,340 until increasing in 2018 to $6,589 and declined slightly to $6,576 in 2019.
The largest increase year to year was in 2013 with an increase of 35.6%.Farmland prices decreased in seven counties and increased in seven counties including Cottonwood, Lincoln. Lyon, Martin, Pipestone, Rock, and Yellow Medicine from 2018 to 2019.There was a lot of variability in the numbers from 2018 to 2019.The largest increase was in Martin with an increase of 13% while Watonwan experienced the largest decrease of 18.5% for the sales that met the bare farmland to non-related party transaction requirements.
Rock County had the highest average sale price of $8,851 per acre and Lac qui Parle the lowest at $5,049 per acre.The average Crop Equivalency Rating (CER) for the fourteen counties was 69 with the highest price per CER in Chippewa County at $103.66 and the lowest in Lincoln County at $77.23 per CER.The assessed values were lower than actual sales price with the assessed value at 96.6 percent of the sales price.Historically the assessed value would be 75 to 80 percent of the sales value.Five counties experienced average sales prices that were lower than the assessed values in 2019.While nine counties experienced average sales prices that were more than the average assessed values, the lowest percentage was 89.86% in Martin County.
Each year sales vary within a county land location could have an effect on these average values from year to year.The quality of the land sold within a county may be a factor in the wide swings in the prices from year to year in individual counties. The number of sales in each county varies greatly from year to year.The .2% decrease is below historical increases of 1 to 2 percent.For the last ten years there have been large percentage changes.In the eight years before 2014, prices increased at an annual rate of 15.3%.But from 2014 to present the average change has been 4.8% decline. There are several factors that have an effect on land values.Farm incomes, grain prices, interest rates, return on other investments and 1031 exchanges are often mentioned as reasons for the increase.Farm profits were weaker in 2013 and turned negative since 2014 with lower commodity prices.There were good to record profits in the Southwest Minnesota Adult Farm Management program, from 2005 through 2012. During 2013, half the farms in adult farm management in Southern Minnesota lost money on corn production.These losses have continued through 2019. Many hog and dairy producers experienced a tough year in 2010 many with losses instead of profits with poor prices for their commodities and high feed costs.
If the average farmer had loses from 2014 through 2019, this would soften local demand for the land from farmers.Interest rates have started to slowly increase and land rental income is comparable or higher than what an investor can earn from treasury bills, bonds or certificates of deposit at financial institutions. The stock market increased in 2019.The 1031 exchange is for farmers or property owners who have land in an area of increased value due to location to city or development and rather then pay taxes on large gains from the sale of land they purchase like property or other farmland at a more reasonable price elsewhere, which increases rural farmland demand.The reason for increases or decreases in farm land sales prices is a combination of all of these factors.If you would like a copy of the two page document on the trends in farm land sale prices, contact the local county Extension office at any of the fourteen counties listed above.
Which direction will farm land values go depend on several factors?Supply and demand will determine this. The simple return on investment which is determined by rental rates will determine how competitive farm land is compared to other investments and this will determine a value for farm land.Corn and soybean prices for 2019 crop are still at lower levels than previous years.This should have an impact on profits, farm rental rates and eventually farmland values.The government programs have an influence as well through the farm bill. If interest rates rise or farm rental rates fall, the value of land is sure to be affected in a negative way and that will cause a decrease in land values.The table below indicates average land prices from 2013 to 2018.
Investors Choice Financial Services Inc. Announces its Proud Affiliation with American Portfolios, Recognized as Broker-Dealer of the Year for the Fifth Consecutive Year
Slayton, MN (January 14th, 2020)—Carla and Jim Goedtke,of Investors Choice Financial Services Inc. located in Slayton and Marshall, are pleased to announce that American Portfolios Financial Services, Inc. (AP)—an independent broker/dealer serving affiliated financial advisors nationwide, with which they are affiliated—recently earned the distinction of being named the 2019 Broker-Dealer of the Year by a respected industry publication for the fifth consecutive year.
It was 29 years ago that Investment Advisor magazine’s editorial staff began inviting registered representatives of independent broker/dealers (B/Ds) to rate their B/D in 15 distinct categories. The B/Ds that receive the highest average rating from their affiliated professionals are named Broker-Dealers of the Year in four divisions based on their number of producing representatives. AP won Division III, gaining top votes in the category of B/Ds with 500 - 999 producing advisors.
The Goedtke’s became affiliated with AP in 2007to support the growing needs of their practice in providing comprehensive financial services and unbiased investment advice throughout our region.As a valued branch office of AP, the Investors Choice Financial Services team plays an important role in demanding the best products, programs, client reporting and business processing tools to supremely serve their client base.Carla is also serving her second year on the American Portfolios Advisory Commission, a commission of representatives from throughout the United States.As such, American Portfolios winning Broker-Dealer of the Year is a collective achievement.
The announcement of AP’s Division III 2019 Broker-Dealer of the Year Award was formally made in the September issue of Investment Advisor magazine, recently distributed to its readers. “Investment Advisor’s Broker-Dealers of the Year, including American Portfolios, help their advisors thrive,” said Janet Levaux, editor-in-chief of Investment Advisor magazine. “These firms have been recognized by their advisor clients for service excellence. We are pleased to honor them for the innovative, entrepreneurial ways in which they support advisors looking to grow their businesses, while working in the best interest of investors.”
In addition to being named B/D of the Year for the last four years by Investment Advisor magazine, AP has been named one of the Best Companies to Work for in New York by the New York State Society for Human Resources Management (NYS-SHRM) and the Best Companies Group (BCG) in 2016, 2017, 2018 and 2019, as well as one of the Top Long Island Workplaces for 2018 by Newsday.
About Investors Choice Financial Services
Established in 1995, Investors Choice Financial Services Inc. was founded to provide individuals and organizations personal financial guidance suited specifically to their needs. Its goal is to provide clients with excellent advice and service as they plan for their financial future. In short, Investors Choice Financial Services Inc. offers individuals relationships built over time through stability and solid investment strategies.
*Based on a poll of registered representatives conducted by Investment Advisor magazine. Broker/dealers rated highest by their representatives are awarded “Broker/Dealer (B/D) of the Year.”
Sesquicentennial Farm Applications Due March 2
Minnesota Farm Bureau’s Sesquicentennial Farm program will honor Minnesota families who have owned their farms for at least 150 years. Since the Sesquicentennial Farm program began in 2008, over 371 farms have been recognized. The Sesquicentennial Farm program recognizes family farms according to the following qualifications:
1) The farm must be at least 150 years old this year (2020) according to the abstract of title, land patent, original deed, county land records, court file in registration proceedings or other authentic land records. Please do not send originals or copies of records.
2) Your family must have owned the farm for 150 years or more. “Family” is defined as parents, grandparents, aunts, uncles, brothers, sisters, sons, daughters, first cousins and direct in-laws (father, mother, brother, sister, daughter, son-in-law).
3) Continuous residence on farm is not required, but ownership must be continuous.
4) The farm should consist of 50 or more acres and currently be involved in agricultural production.
A commemorative certificate signed by Minnesota Farm Bureau Federation President Kevin Paap, Minnesota Department of Agriculture Commissioner Thom Petersen and Governor Tim Walz will be awarded to qualifying families, along with an outdoor sign signifying Sesquicentennial Farm recognition.
Applications are available by writing Sesquicentennial Farms, Minnesota Farm Bureau Federation, P.O. Box 64370, St. Paul, MN 55164; emailing email@example.com; or calling 651-768-2100. Applications are also available on our website, www.fbmn.org. Deadline for application is March 2. Previously recognized families should not reapply.
Century Farms are not automatically recognized as Sesquicentennial Farms. Families must apply to receive Sesquicentennial Farm recognition. County Farm Bureaus are encouraged to work with county agriculture societies and county fair boards on local recognition of recipients. Recipients will be announced at the beginning of April.
To see a list of previously recognized Sesquicentennial Farms in Minnesota, visit fbmn.org/pages/farm-recognition.
Slayton Public Library’s ‘Blind Date With a Book 2020’
Single?In a relationship?It’s complicated?
Between February 1st and 29th you can go on a ‘mystery date’ at the Slayton Public Library. Participating books & audios are dressed up for Valentine’s in wrapping paper.Simply select one based on the description…no peeking!
Take your ‘date’ home and get acquainted. Will it be funny, mysterious, romantic or entertaining? There will be no lulls in conversation, awkward questions, or a need to dress up.You may be disappointed, but then again you may have a great time!
Inside each book is a ‘rate your date’ slip.Let us know if you enjoyed yourself or if it was a dud. There will be no hard feelings or awkward breakups. Be sure and turn these slips in to register for a prize at the end of the event.
So, what do you say?Are you ready for your date?
Foreign Investors Must Report U.S. Agricultural Land Holdings
U.S. Department of Agriculture (USDA) Farm Service Agency (FSA) reminds foreign investors with an interest in agricultural lands in the United States that they are required to report their land holdings and transactions to USDA.
The Agricultural Foreign Investment Disclosure Act (AFIDA) requires foreign investors who buy, sell or hold an interest in U.S. agricultural land to report their holdings and transactions to the USDA. Foreign investors must file AFIDA Report Form FSA-153 with the FSA county office in county where the land is located.
According to the CFR Title 7 Part 781, any foreign person who holds an interest in U.S. agricultural land is required to report their holdings no later than 90 days after the date of the transaction.
Failure to file a report or filing a late or inaccurate report can result in a penalty with fines up to 25 percent of the fair market value of the agricultural land.
Foreign investors should report holdings of agricultural land totaling 10 acres or more used for farming, ranching or timber production, including leaseholds of 10 years. AFIDA reports are also required when there are changes in land use, such us agricultural to nonagricultural use. Foreign investors must also file a report when there is a change in the status of ownership.
The information from the AFIDA reports is used to prepare an annual report to the President and Congress on the effect of foreign land holdings on family farms and rural communities in the United States.
Assistance in completing the FSA-153 report may be obtained from the local county FSA office. For more information regarding AFIDA or FSA programs, contact the Murray County FSA office at 9507_ 836-8567or visit farmers.gov.
How is Your Loved One/Caregiver Doing?
The holidays are over, the celebrations have ceased and things, for the most part, have returned to normal. People resume their jobs and their daily activities. However brief the respite that was the holidays, for some, has left too soon.
In our area of rural Minnesota, families reunite during the holidays. During these visits, they may see Mom or Dad struggling to take care, not only of themselves but also their spouse. For those that have traveled back home, they may feel an urge to help their parents in cleaning, cooking or other tasks. Often, the focus is on the ailing parents and how they are doing. But, do they ask the family member(s) that are helping Mom and Dad on a regular basis how they are doing? Do they ask if there is anything they may need help with? When everyone leaves, are Mom and Dad able to care for themselves, is the caregiver able to provide the care needed, or does the caregiver need more assistance? Do they make sure the caregiver is taking care of themselves?
As a family and as a society, how do we help caregivers avoid burn out? How do we prevent further health issues for the caregiver, let alone more potential health issues with the one they are caring for? We need to do a better job of recognizing and assisting the caregiver.
According to AARP’s most recent Valuing the Invaluable: 2019 Update, providing support, training and respite improve health outcomes for all and are shown to reduce hospital re-admissions. Therefore, I challenge those who may live a distance away to be a support to not only the care recipient but also to the caregiver. Reach out, offer assistance, respite and let them know you are there to help when needed. Happy 2020!
Jason W. Swanson, HSE
Farm Resource Guide Available
The Farm Resource Guide for 2020 is now available at many University of Minnesota Extension County offices across the state.This resource guide includes a wide variety of useful farm business management information including the following items:
• Custom rates: What to charge for planting etc.
• Average farmland rental rates by county: From two sources with projections for 2020.
• Flexible Rental Agreements: Examples of how they work and how they have worked in past.
•Lease forms for Cash Rent and Share Rent arrangements: Which you can fill in the blanks.
• Farmland sales information for all counties in Minnesota: Lists current average ag sales.
• Information on charges for custom feeding, commodity storage, leasing buildings and various bin rental rates: List various costs like leasing a dairy barn and machine storage.
• Current information on pasture rental rates, tree timber values: List pasture rates and timber sales.
• Marketing information along with recent cost trends for Minnesota: Many charts are included.
•Commodity price probabilities for corn, soybeans, alfalfa hay, straw, grass hay, hogs and cattle: Puts odds to getting break even prices and tables show historic patterns.
• Corn and soybean yields by county: USDA county yields used for calculating the farm bill payments
• Feedlot Rule Highlights: Information on Manure Agreement and Easements
• Manure Spreading Lease examples and Land Application Agreement: Forms included.
This Resource Guide is available for a $25 fee plus postage and sales tax if you would like to have your own copy.I can provide you the information in your preferred format: e-mail cost $25 plus sales tax; CD cost $29.00; or hard copy cost $31.00.
If you would like your own copy of the Farm Resource Guide, please e-mail me at firstname.lastname@example.org or give me a call at 507-372-3900 ext. 3906 and let me know what format you would like.I will send out the materials and an invoice as soon as possible.I hope you find the Resource Guide useful and would welcome your feedback on what you would like to see included in next year’s Guide.
For more farm business information, please see the University of Minnesota Extension website:https://extension.umn.edu/managing-farm
Dave Bau, Extension Educator, Ag Business Management, U of M Extension Regional Office, Worthington, 507-372-3900 ext 3906, email@example.com
Examining the skills most necessary for success in today’s workplace
The transition from college to the workforce can be challenging; however, a new University of Minnesota study shows how higher education institutions can more adequately prepare students for life after school. While technical and subject matter expertise are important, researchers found that critical thinking and communication skills are some of the most valued by employers.
“In the U.S., there is a perception by employers that college graduates are unprepared for a workforce that is becoming technologically more advanced and increasingly globalized,” said Joseph Rios, the study’s lead author and assistant professor in the University of Minnesota’s Department of Educational Psychology in the College of Education and Human Development.
“Such a context requires employees to possess more than technical and subject-matter expertise by demanding a combination of cognitive, interpersonal, and intrapersonal skills. Though there is agreement that students should be developing these skills, there has been little consensus among practitioners and researchers on which ones are of greatest importance for workplace success.”
In the study, published in Educational Researcher, Rios and his colleagues conducted a content analysis of 142,000 job advertisements. They ranked skills described in the advertisements by demand (i.e., number of times mentioned) and also examined how demand varied by degree level and degree field requirements.
The study found that:
• oral communication, written communication, collaboration and problem-solving skills were demanded by a minimum of 50% more than all other skills;
• when employers demanded multiple skills, the most in-demand pairing was oral and written communication — with this pairing being demanded 180% more than the second most popular pairing;
• buzzwords commonly used in more recent academic literature (e.g., social responsibility) were in relatively low demand by employers or, in many cases, simply not mentioned at all;
• the skills most sought after by employers varied slightly by the education level and degree field requirements for the role — the most in-demand skills for jobs requiring a bachelor’s or graduate degree were oral and written communication, while job descriptions requiring an associate’s degree most frequently mentioned oral communication and social intelligence.
These results were replicated with a sample of approximately 120,000 job advertisements collected one year later.
According to Rios, this study has implications for first-time job seekers and those preparing them for the job market in higher education.
“Our study illustrates a clear-cut demand for a limited number of skills, which — although are framed as being critical to the 21st century worker — have long been both important to employers and perceived to be absent in a large percentage of college graduates,” said Rios. “It is our hope that the findings from this study can add to the discussion on establishing accountability standards for student skill development to promote workforce preparedness and the long-term success of the U.S. economy.”
Rios specializes in educational measurement and aims to improve evidence-based practices in educational measurement by considering the social and psychological factors that influence assessment results and use of assessment feedback.