Marc Schober
Marc Schober is the editor of Farmland Forecast (http://farmlandforecast.colvin-co.com) an educational blog devoted to investments in agriculture and farmland. The blog highlights news from around the agriculture sector including farmland value trends, agriculture company reports, farming practices, and other agricultural topics.
Contact Information: tmschober@colvin-co.com (763) 427-7991
Thursday, November 19, 2009As a land owner, it is always a good idea to be aware of conservation practices when considering the leasing of farmland. According to the US Department of Agriculture's Natural Resources Conservations Service, some common conservation of farmland practices include:
Wednesday, November 18, 2009Farmland values have stabilized across the Federal Reserve Bank of Kansas City’s Tenth District. Irrigated land, as well as pasture land, decreased in value approximately 1%, while nonirrigated land slightly increased in value during the third quarter of 2009.
Monday, November 16, 2009By 2050, the world will have to feed 3 billion more humans. How can we do such a task when currently one out of eight, or people 850 million, are malnourished?
Wednesday, November 11, 2009Brazil has its eyes set on much higher grain yields. Through genetically engineered seeds, double cropping, market changes, and exchange rates Brazil could emerge as one of the top exporters of corn and other grains according to an article from The Progressive Farmer.
Monday, November 09, 2009Top soil depletion could rival global warming as the next natural global dilemma according to the Seattle Post-Intelligencer's article "The lowdown on top soil: It's disappearing."
Currently in the US, there is about 3 feet of top soil that is made up of many micro organisms and fungus that help support growth. According to David Montgomery, a geologist at the University of Washington, the problem is that this priceless dirt is disappearing at a rate of about 1% per year. The culprit is water and wind erosion. The National Academy of Sciences claims that top soil is being eroded in the US 10 times faster than it can be replaced.
Tuesday, November 03, 2009An international code of conduct for land deals should be completed by the end of the year, according to the head of the United Nations’ International Fund for Agricultural Development (IFAD). In 2008, food prices increased and many countries tried securing their food supply by buying foreign farmland, or entering into long-term leases on foreign farmland. These sales and leases have often been referred to as “land grabs” because both the buyer and seller do not always benefit.
Monday, November 02, 2009Investors are showing interest in global farmland again. Besides individual investments in US farmland, foreign farmland has taken the spotlight. Areas like Canada, Africa, and Australia are becoming targets for farmland investors.
Thursday, October 29, 2009A recent study from the World Agroforestry Centre (WAC) revealed that approximately 2.5 billion acres, or 46% of world farmland, has tree cover of more than 10%. Over 27% of world farmland has over 20% tree cover. This comes as great news considering earlier estimates were as low as 120,000 acres of farmland having significant tree cover.
Tuesday, October 27, 2009Wall Street is beginning to invest in wind energy again, after a six month absence according to the Wall Street Journal. Morgan Stanley and Citigroup have each invested $100 million to finance separate wind farms in August in order to take advantage of a new federal program that pays substantial cash grants to encourage wind development. The cash rebates are part of February's stimulus bill.
This could be the a new beginning of wind development and other alternative energies, such as solar and geothermal.
Friday, October 23, 2009Leasing land was illegal in China prior to 1984, but a change in government policies has made it possible to lease land rights on farmland. The change in land rights policies from the Chinese government has boosted farm income and productivity over the past 25 years.
Thursday, October 22, 2009Farmland is becoming a smart investment, but some may ask why. One reason is growing demand for grains, especially from developing countries. China has begun to reconsider their future “food security” by acquiring foreign farmland.
Tuesday, October 20, 2009Rural community bankers are confident that their economies will soon turn around, according to increases in the Rural Mainstreet Index. The confidence index, which gives an outlook on the rural mainstreet economy six months out, rose above neutral growth to 58.7 this month. An index of 50 indicates neutral growth. Even though indexes are increasing, economist and founder of the RMI, Ernie Gross noted that the rural mainstreet economy is still weak.
Monday, October 19, 2009The number of people who are malnourished rose in 2008 and 2009, after a long decline. The number of malnourished people has recently passed 1 billion, according to the UN.
Thursday, October 15, 2009Farmland is unlike any other investment as it can weather economic storms, yield consistent returns, act as a hedge against inflation, and pay investors for holding it. U.S. farmland values have increased roughly 6.7% over the last 20 years and 4.5% over the last 100 years. U.S. farmland has also paid its owners cash rents of roughly 5.8% of its value since 1987. When combined, farmland has returned to investors 12.5% per year over the past 20 years.
Tuesday, October 13, 2009An investment tip from Mark Twain: "Buy land. They're not making it anymore."
Farmland is disappearing across the world at an alarming rate. Hundreds of thousands of acres across the globe are disappearing due to climate change, erosion, and urban development. The American Farmland Trust estimates that farmland is disappearing at a rate of 2 acres per minute.
