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Landlite
June- July 2009
By: McClure Land Unlimited, Inc.
So much for global warming It has been a cool spring in 2009. In areas that did not get excessive rain, the crops look outstanding. We keep wondering if suddenly the growing season is going to turn against us!
The markets seem to be stabilizing somewhat. This is probably a good thing as producers will have a better opportunity to forecast their cash flows. We have already seen the dramatic reduction in fertilizer costs. One producer pointed out that when you lock in your input expenses it is a mistake to not lock in your income from the sale of your crops.
Land sellers are very reluctant to sell. We are hearing the phrase of where else can I put the money? Buyers are a bit reluctant to purchase as the constant media blitz as to overall concerns of the economy. We have seen this type of standoff before. This creates pin up demand and sooner or later the mood changes and activity dramatically increases. When this has happened in the past we have seen the market either work lower or price increase. I am expecting prices to gain momentum to the upside as I believe we will have inflationary pressure in the near future. Last year pointed out that the world is short of feedstuff and energy. I think we have just went through a period of adjustment, but the underling potential for strong demand is still with us.
Sales of land have been less, but the sales we see are still very strong. Corn and soybean prices are very favorable and nice profits can be had. The livestock sector is having problems and liquidation is taking place. Still the world has a huge appetite for protein. Once we finish the reduction on number, watch out for sharply higher pricestime to fill the freezer!
We have a steady flow of inquires about farming additional land. So if you have a need to evaluate your farm operator you may want to give us a call to help you out or place you farm on our website: HYPERLINK "http://www.farmcashrent.com"www.farmcashrent.com. It is that time of the year when people start planning for 2010.
Safety Tip: I found a fantastic safety tip in my Popular Mechanics magazine. To properly adjust your side mirrors, you should move your head to the left until you rest against the glass (be sure to have the window up). In this position adjust the outside mirror so that you just see the rear finder. Move your head a like distance to the right to adjust the other mirror. Try this as it eliminates the blind spots and the need to look back to see if there is anyone on your hip.
Things to do with One Trillion Dollars:
Buy the entire state of Nebraska 77,358 square miles for $ 20,918 per acre. That would get some sellers off of the fence!
A Trillion Dollars in prospective:
$ 1,000.00 bills stacked in a pile to make a million requires a pile 4.3 inches tall, for a billion the stack must be increased to 358 feet, but for a trillion the stack would be 67.9 miles high. I am not sure that our present leaders have a grasp of the amounts they are spending.
Why is that Tree there? Have you ever noticed that some farmers keep their fence lines neat and tidy, while others let everything grow into their fence lines? I have, and it makes me wonder..WHY? That tree is going to is get bigger and bigger, and then before you know it.its going to cost an arm and leg to get it taken out. Recently we bid a project just south of my home in Saunders County, Nebraska. It was for the government, and what they needed done should have been done 10 years ago. But finally, the County got on their case because the farmers that surround that land have had enough. Their weed and tree problem was so far out of control it was going to cost them an extreme amount of money to get their 960 acres cleaned up the way it needed to be. Now dont get me wrong.I love my big shade trees that keep my house a little bit cooler in the summer, but I dont see the point in letting something get out of control like the government did. Be good to your neighborsweather you like them or not.and keep your side of the street clean.
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