From AgWeb, November 19:
For 12 straight months, the Creighton University Rural Mainstreet Index (RMI) has remained above growth neutral, to the Creighton University Rural Mainstreet Index (RMI).
For November 2021, the RMI rose to 67.7 from October’s 66.1. The index ranges between 0 and 100 with a reading of 50 representing growth neutral and is generated by a monthly survey of bank CEOs in rural areas of a 10-state region dependent on agriculture and/or energy.
“Solid grain prices, the Federal Reserve’s record-low interest rates, and growing exports have underpinned the Rural Mainstreet Economy,” says Ernie Goss, who chairs Creighton’s Heider College of Business and leads the RMI. “USDA data show that 2021 year-to-date agriculture exports are more than 23% above that for the same period in 2020. This has been an important factor supporting the Rural Mainstreet economy.”For 2021, the RMI has averaged 65.7.
The region’s farmland price index improved to a very strong, and record high of 85.5 from October’s 81.5. October’s reading represented the 15th straight month that the index has moved above growth neutral. For 2021, the farmland price index has averaged 74.6.
Here are the state-by-state farmland price indexes:....
....MUCH MORE
[outro] One thing to look at is eliminating the step-up in basis for appreciated assets upon the death of the taxpayer. There are billions and billions of dollars worth of capital gains that go totally untaxed as title to the assets moves to the heirs. This is one of the most inequitable features of the tax code, entrenching a financial aristocracy, and we are not just talking farms. You don't think the Walton clan became the richest family on the planet simply through lucky genes do you?
"McDonald's french fries, carrots, onions: all of the foods that come from Bill Gates farmland"
May 25
"Minneapolis Fed: Land Values, Cash Rents Make Largest Quarterly Jump Since the Ethanol Boom"
May 21
Creighton University's "Rural Mainstreet Index Soars to Record High: 90% of Bankers Report Labor Shortages Restraining Growth"
For the first time since 2013, the regional farmland prices expanded for eight straight months.
May 14
Farmland: "Bullish Land Price Outlook"
As goes the farmgate commodity basis, so goes the entire rural economy edifice, banking and finance, retail provisioners, land prices, the whole thing built upon the price of wheat. And corn. And soybeans. and cotton. And marijuana....
And more next week. In the meantime remember our oft-stated premise:
Farmland is worth it's discounted cashflow. Period.
It may sell for more but at some point it returns to trend. It can correct either in price or in time.
"In fertile Ukraine, a 20-year freeze on the sale of farmland is lifted -- with uncertain consequences"
One of the reasons for the Maidan Revolution was to open the sale of Ukrainian land to foreigners—it's much too good for the Ukes to keep to themselves—but that step, required by the IMF as a condition of any further loans to replace the loans that were stolen and laundered (just what was Templeton up to with the Ukrainian sovereign debt bets?), that step needs a referendum and enabling legislation.
But this phase, also required by the IMF, is the starting point....*****.... FarmDoc Daily just happened to post the latest USDA estimates of farmland rents for comparable Illinois land: $227 per acre or $560/hectare so you can see the attraction.And from the bombthrowers at The Oakland Institue (we are fans), August 6:....
