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Eleventh Circuit Deals IRS Defeat In Conservation Easement Struggle The Eleventh Circuit has thrown a monkey wrench into the IRS machinery grinding away at abusive conservation easement deductions. Judge Barbara Lagoa, a Trump appointee, wrote the opinion in David and Tammy Hewitt v Commissioner of IRS issued on December 29, 2021. The Hewitts were appealing a 2020 Tax Court decision by Judge Goeke. The Hewitts had claimed a $2.8 million deduction on their 2012 return. Somehow the 2012 return got by, but the IRS was disallowing carryovers in 2013 and 2014. Judge Goeke agreed with the disallowance resulting in deficiencies of $336,894 and $347,878 for 2013 ...
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Iowa Farmland Values Jump 29% After several years of modest gains and losses, the average value of an acre of Iowa farmland skyrocketed 29% in 2021. The nominal value of an acre of farmland is now higher than at any point since Iowa State University and Iowa State University Extension and Outreach began surveying values in 1941, and is 12% higher than the previous peak in 2013; although the current value in inflation-adjusted terms is still lower than that for 2012 and 2013. The last time farmland values increased more than 25% was in 2011, when values rose 32.5%. “Surging ethanol demand and high commodity prices were two of the significant factors driving ...
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Investors Are Buying up Rural Arizona Farmland to Sell the Water to Urban Homebuilders In fields on the Arizona-California border, farmers draw water from the nearby Colorado River to grow alfalfa, irrigating crops as they have for decades. That could change soon. An investment company has purchased nearly 500 acres of farmland and wants to strip it of its water and send it 200 miles across the desert to a Phoenix suburb, where developers plan to build thousands of new houses. Similar deals could follow as the demand for water in the growing Southwest outpaces the dwindling supply. Investors have begun buying thousands of acres of farmland to acquire the ...
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Megan Sheeley, ARA, of Crown Appraisals in Fargo, North Dakota, is the focus of this Member Spotlight. Megan recently passed her examination to complete her Accredited Rural Appraiser designation, and currently serves as the Chair for the Membership Committee for ASFMRA National. She also serves locally as Chair of the Young Professionals Network Committee for the North Dakota Chapter. When did you begin your career as an appraiser? I began my career in ag appraisal in 2016. I grew up on a farm in southeast North Dakota and knew I wanted to pursue some kind of career in agriculture. I noticed how ag appraisers who had been in the industry for decades were ...
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Federal Reserve Ag Credit Surveys - 2021 Third Quarter Farmland Values Soar On Monday, the Federal Reserve Banks of Chicago and Kansas City released updates regarding farm income, farmland values and agricultural credit conditions from the third quarter of 2021. David Oppedahl, a Senior Business Economist at the Chicago Fed, explained in the AgLetter that, “Assisted by low interest rates, government support, and higher than normal farm incomes, the District saw a year-over-year gain of 18 percent in its agricultural land values in the third quarter of 2021. "This was the largest year-over-year increase in the District’s farmland values in nine and a half ...
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Challenges in Setting Land Rental Rates for 2022 Arriving at equitable land rental rates is always an ongoing challenge for farm operators and landlords alike and will likely be an even bigger challenge for the 2022 growing season. Many times, land rental rates for a coming crop year are based on the profitability in crop production in the previous year or two before. In some cases, this can present profitability challenges for farm operators, if grain prices drop or there are yield challenges. On the other hand, there can be extra profit for farm operators in years with above average yields and higher levels of crop prices. Many landlords reduced land rental ...
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80,000 Acre Texas Panhandle Ranch on Sale for $80 Million The Turkey Track Ranch in the Texas Panhandle is a land of river frontage, ponds, pasture, mesas and a historic marker advising that this is the site of Colonel Christopher “Kit” Carson’s last fight. A Dallas-based ranch and land broker with a track record of selling high-end properties has bundled the natural resources, history and rich heritage of the 80,000-acre spread and put it on the market with a $200 million asking price. Bernard Uechtritz, founder of Icon Global Group, said he came up with the price in much the same manner that he used to market the WT Waggoner Ranch for a record $725 million ...
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Analysis-'It's a Madhouse': Organic U.S. Soy Prices Hit Record, Fuel Food Inflation U.S. prices for organic soybeans used to feed livestock and manufacture soy milk have surged to record highs as imports that make up most of the country’s supply have declined, triggering price increases for food including organically raised chicken. The costly soybeans and higher-priced organic products are fueling food inflation at a time consumers are eager to eat better and focus on health during the COVID-19 pandemic. The $56 billion U.S. organic food sector is also grappling with a shortage of shipping containers and a tight labor market as global food prices hit a 10-year ...
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By Claudia Gaglione, National Claims Counsel for LIA Administrators & Insurance Services One of the most common claims made against appraisers continues to be the “sewer versus septic” claim. This claim arises when the appraisal states the subject property is connected to the public sewer and it is later discovered that the property is actually serviced by a private septic system. The borrower/purchaser may allege they paid too much for the property or they may simply seek to recoup the cost to connect to the public sewer. In a recent claim, the insured appraised a property that consisted of a single-family residence located on about 3 acres. There was ...
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U.S. Farm Belt Revival Prompts Mad Dash for ‘Dirt and Iron’ Wall Street Journal writers Jesse Newman and Bob Tita reported in Monday’s paper that, “A revival in the U.S. Farm Belt is in full swing, boosting markets for land and equipment and raising concerns over farmers’ escalating costs. “A monthslong rally in prices for major agricultural commodities such as corn and soybeans is pushing up incomes for U.S. farmers and unleashing spending and investment that had been subdued for years, according to agricultural economists and executives. The run-up in land and equipment prices that has followed could leave farmers exposed if big harvests send crop prices ...
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John Wayne’s Ranch From ‘True Grit’ Lists for $11 Million In Colorado. It was one of his most iconic roles and also earned John Wayne the only Academy Award of his legendary career. “True Grit” was a colorful western that starred the icon known as The Duke, as Roster Cogburn, an old U.S. Marshal who is hired to track down the murderer of the father of a spit-fire daughter (Kim Darby). Die-hard fans will recognize the ranch now listed for $10.9 million in Placerville, Colorado from the opening credits of the classic. “The 374-acre property offers stunning views of the San Juan Mountains and sizable populations of elk and mule deer — all unmolested since the ...
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Once, Twice, Sold! 80 Acres in Iowa Sold for $22,600 Per Acre, Sets New State Record The bull-run on Iowa farmland sales continues to play out in August. Less than two weeks after a piece of farm ground in Iowa sold for $19,000 per acre, a new record sale was posted in Iowa Friday, cashing in at $22,600 per acre. That tops the previous record by $300 per acre. The sale was on 80 acres of ground in Grundy County, Iowa, which is located west of Waterloo. “The farm did have a wind turbine on it,” says Jim Rothermich, ARA, of Iowa Appraisal and Research. “The buyer was an investor-buyer, and the runner-up was also an investor. So, the wind turbine income stream ...
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For this member spotlight, we're sharing a highlight on Emily Oberbroeckling from the Iowa Chapter of the ASFMRA. Emily serves as a Chapter Director and head of the YPN Committee in Iowa. Describe your experience and education related to the property professional field. I graduated from University of Wisconsin- Platteville with a B.S. in Agricultural Business in 2009. I started my career as a lender at a community bank in Northeast Iowa. In 2012, a Real Estate and Chattel appraiser position opened with FCSA in Decorah, Iowa and I took the career leap into the appraisal world. I took appraisal classes through ASFMRA, Appraisal Institute and McKissock and received ...
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In This Issue Upcoming Webinars: Crop Conditions | Financial Markets | PAREA Education South Dakota Land and Lending Conference Apply for The Appraisal Foundation's Appraisal Standards Board, Appraisal Qualifications Board , and Business Valuation Resource Panel Agricultural Real Estate Values Jump 7%, Largest Increase Since 2012 The Land Values 2021 Summary report, released last Friday by USDA’s National Agricultural Statistics Service, shows agricultural land values increasing at a rate not seen in nearly a decade. This report and its contents provide one of many indicators of the overall health of the agricultural economy and ...
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In This Issue 2021 Journal of the ASFMRA Are You Getting the Most Use Out of Your Drone? FREE: ASFMRA June Crop Development Update Dominican Republic to Kill Thousands of Pigs Over Swine Fever Outbreak The Dominican Republic will slaughter tens of thousands of pigs after detecting outbreaks of African swine fever in 11 of the country's 32 provinces, authorities said on Monday. Fernando Duran, administrator of the state-run Banco Agricola, told a news conference the government will pay pig farmers the market price of each animal slaughtered. Announcement of the slaughter comes after authorities sent 389 samples from pig farms across ...
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In This Issue Leadership Institute 2021: Reserve Your Spot Today ASFMRA Pollination and Prospects Update (Free for Members) Member Resource: NCREIF Farmland Property Index Connecting Ranchers with Land Stewards Could Be Key to Less Disastrous Wildfires As you read this, there are about 150 goats grazing their way through the grass and woodland areas surrounding Fitch Mountain, a local open space preserve in Healdsburg, California, an hour north of San Francisco. The goats will be there for the next few months, eating down the grasses and shrubs that would act as fuel for wildfires across 90 acres. In a historically dry year, when nearly ...
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In This Issue Land Loans, Equity Crowdfunding, And Beyond: Know Your Farm Financing Options Submit Your National Awards Nominations (July 15 Deadline) [Apply Here] The Appraisal Foundation Seeks Candidates for Appraisal Standards Board Group with Ties to Mormon Church Outbids Bill Gates’ Group for Easterday Land An investment company with ties to the Mormon church has the high bid for land that belonged to the now bankrupt Easterday Farms and Easterday Ranches. A company called Farmland Reserve submitted a bid of $209 million dollars for more than 33,000 acres of land in Benton County, Washington. The second highest bid came from a group ...
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Farmers know it well: in order to make money, you have to spend money. When you’re looking to buy a farm, expand your farming business, or improve a piece of farmland, the first thing you need is some capital to make it happen. There are myriad options for financing land purchases or farm business expansion, including a few that are less conventional but just as effective. This article reviews some of the most common routes to accessing farm capital and introduces some debt-free alternatives that you may not be aware of yet—but are helping farmers across the U.S. accomplish their business goals right now. FINANCING FARM EXPANSION WITH DEBT Broadly speaking, ...
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In This Issue 2021 Journal of the ASFMRA Are You Getting the Most Use Out of Your Drone? FREE: ASFMRA June Crop Development Update Cyberattack on Meat Giant Has Iowans Looking to Fortify Defenses A ransomware attack on the world’s largest meatpacking company this week drew attention to the need for more cybersecurity in agriculture. JBS plants across the United States, including two in Iowa, had moved toward reopening at full capacity late Wednesday after a cyberattack on servers. The White House said a Russian crime organization is likely to blame. Pat McGonegle, CEO of the Iowa Pork Producers Association, said the JBS incident showed ...
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When drones began emerging into mainstream commercial use, it seemed like the sky was the limit for how this technology would impact farm management and farmland appraisal. But now that outlooks have become a bit more grounded, how are these professions actually making use of drones today? For appraisers, the obvious advantage of using a drone is gaining an aerial perspective that allows you to view a property from different angles and inspect areas that would normally be difficult to access. "The primary purpose was getting a better view of the things we’re trying to evaluate,” said Dave Cullins, Senior Vice President of Administration for AgTexas Farm ...
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