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August 5, 2019
Even though it seems like we just got the 2019 crop into the ground during this historically delayed season, many landowners are starting to think about 2020 and they have the usual questions and then some. Besides late planting in many areas and the fact that 2019 crops are far from being made, landowners are thinking about grain prices, leasing for 2020, and the care of their land. One of the reasons landowners are thinking about next year's leasing is that some states require notice be given to farm operators by September 1 each year if changes are to be made to an existing lease so that it does not carryover into next year under existing terms.
Currently, additional questions loom in front of agriculture that may have an extended effect on multiple aspects from the farm to the end user. At this writing, it looks like trade issues with China will continue for some time and that tariffs could escalate. The size of the crops produced this fall is quite uncertain, which is impacting grain prices. Continued grain price variability raises questions about what price to use when forecasting crop revenues on individual farms for next year and what cash rental terms are appropriate. One additional question on producers' minds is will they receive the full amount of the Market Facilitation Program payments and when. This affects farmers' incomes and ability to pay rents.
On top of production, grain price, and leasing questions for the balance of this year and next, landowners do have interest in knowing how land values are trending as the farm asset they own is important. In addition to knowing about land values, landowners are asking about estate or succession planning, how to handle wind turbine or solar leases, and conservation improvements for their farms. Some landowners are seriously looking at organic or sustainability practices and asking how to get their farm involved.
Landowners are reaching for answers to their questions and many turn to the Landowner Workshops hosted by Farmers National Company. The Company is currently hosting large crowds of landowners this summer who are interested in learning more about leasing trends, grain price forecasts, land value trends, and today's crop production practices. Farmland owners are looking for expert advice to answer their questions or to have a professional who will manage the farm for their profit and enjoyment.
Senior Vice President - Real Estate Operations
|Category: Agricultural Real Estate News|