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Your land is special & unique, selling your property requires knowledgeable, experienced brokers that help your farmland stand out to right buyers.

Our extensive network of farm families, agriculture professionals, farmland investors and land owners help our clients achieve their goals for selling with equitable returns. We directly call, email, meet with the right buyers for your property.

The unique features & history of your farm or land are vital to the sale of your property. We take the time to listen and understand why your property is special and determine the best way to connect with the ideal buyer.

We believe in being thorough, timely and dependable to ensure you and our buyers are satisfied. We do what we say and say what we do.

A picture is worth a thousand words. From quality photography to professionally designed brochures, we take the time to give your property the attention and look it deserves. Aerial photography and video can also be produced for even more effective marketing of your farm and land.

Your listing will reach the markets where the buyers are. We regularly advertise in local & regional publications in both print and on the web. Together, we target the right buyers at the right time.

Our experience and knowledge have helped us gain expert status in the field of farm and land real estate. As regularly published authors on issues related to buying and selling farms, land and wooded hunting property, we offer you a unique advantage, getting more eyes see our land brokerage firm and a leg up when it comes to selling listings.

Our website and blog attract visitors from across the country that are interested in buying and investing in Indiana farmland and real estate.  Qualified buyers and brokers look at our listings daily to see the latest properties to enter the for sale market. Our online marketing team has over 14 years of experience, this results in connecting more buyers with our listings.

Our farmland brokers are experts in their fields and are passionate about helping you reach your goals – whether financial, legal or conservation minded, you can expect the best service, effort and follow up to help you sell your farmland. Gesweing Farm & Land understands the special requirements of selling Indiana farmland. We have the experience to handle land issues such as water, wells and irrigation, wind turbine leases, CRP/WHIP/EQUIP conservation easements, wildlife habitat enhancement, 1031 tax deferred exchanges and more.

You deserve the best possible service and are treated with the Golden Rule. No matter what county your Indiana farm, hunting property or wooded real estate is located in, we can help you reach your goals of fair and equitable returns.

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Safety doesn’t happen by accident.
-Author Unknown

Written by: Amanda Smith

Harvest is upon us…a blessed time of the year when the fruits of hours of labor and prayer pay off, and the storehouses are filled.  It also one of the most dangerous times of the year for those who seek to feed the world, or just their own little community.  Farm safety is a topic no one wants to discuss, its stories can be gruesome and disheartening…but maybe discussing it is the very thing that might save a life.

According to a study published by Texas A&M Extension, death rates in agriculture are the second highest among all industries, with only mining having a higher toll.  These numbers do not even account for the many children under the age of 16 who work on farms, and over 100 children under age 20 who are killed in farm related accidents each year.  Because most agriculture operations have fewer than 11 workers, they are exempt from Occupational Safety and Health Administration (OSHA) worker protection standards, worker training requirements, and accident reporting procedures.  The United States agriculture workforce is comprised largely of workers who may not have proper training on safety procedures, nor do they have the education and/or experience to know inherent safety dangers.

Small farms may be at an even greater risk than larger, more commercial operations.  One of my favorite movies as a girl was “The Man in the Moon”, featuring a then little-known pre-teen actress by the name of Reese Witherspoon.  Maybe you have heard of her.  Reese’s character and her older sister fall in love with the same boy, after he and his mother relocate to the area to operate a farm next door.  Reese discovers the young man’s mother weeping over her mangled son, after he attempts to remove his hat off of a tree limb from a moving tractor pulling an implement.  It’s a gruesome scene, and one that seems a bit nostalgic given the modern advances in farm machinery.  Nonetheless, on many of today’s small farms, the equation of outdated equipment and inexperienced laborers is a persistent reality.  Additionally, because many small farms are secondary occupations for those running them, farm work often comes at the expense of sleep…adding yet another layer of risk.

Special populations of workers on the farm make prioritizing safety imperative.  We spend hours talking to our children about safety in our modern world…everything from not talking to strangers and looking both ways before crossing the street, to not “friending” people online they don’t know or drinking from a cup at a party they have left sit unattended.  Why then would we allow them to operate or be around machinery, use tools, or handle materials that are potentially unsafe without first educating them about safety?

Similarly, there are still a large number of farm workers over the age of 65 on U.S. family farms.  These workers have delayed reaction times, may have impaired vision, and fatigue more quickly than others.  Tractor drivers over the age of 65 are two to three times more likely to die in tractor accidents than younger workers.

Here are a few simple reminders that make a big difference in eliminating potential hazards and resulting personal injury.

• Keep the farm property tidy, with grass mowed, weeds trimmed, and any discarded items cleaned up. This will assure holes can be seen, and damage to vehicles and equipment is minimized.
• Keep chemicals and cleaning products securely stored and clearly labeled. Consider a flammable storage cabinet or chemical cabinet
• Keep an eye out for fire hazards such as exposed wires, oil and gas containers or soaked rags, electrical wires or equipment within reach of livestock or pets, and piles of overheating bedding or feedstuffs.
• Wear close fitting clothing that is appropriate for the job at hand.
• Use safety equipment, both personal and for machinery, in the way it was intended. Wearing eye and ear protection, gloves and safety masks may seem uncomfortable or a delay to getting the job done, but the damage done by not wearing them can be instantaneous or cumulative over years.
• Tractor rollover structures (ROPS) combined with seatbelts are a no brainer. Over 800 deaths occur due to tractor accidents each year, with more than half being from rollovers.
• Another absolute necessity are safety shields on all PTO shafts, and precautions to keep children away from them.
• Make sure first aid kits and fire extinguishers are on all equipment where appropriate, and readily available throughout the farm’s buildings and shelters.
• Taking special care with livestock to ensure that they are healthy and that handling equipment and fencing are in good condition. Also make sure all animal handlers are well-trained in animal behavior and safety protocol.
• Minimize fatigue by limiting hours, taking frequent breaks, and maintaining a healthy diet.
• ATV accidents may be one of the most potentially dangerous pieces of equipment on the farm. In 2014 alone, over 90,000 ATV accidents required emergency medical attention, and 385 deaths resulted.  Of course, the single most important safety protocol for ATV operation is a helmet.  Secondarily, instruction on proper operation, and the use of Personal Protection Equipment (PPE) specific to the task being performed on the ATV should also be addressed.

Many of these things may seem like common sense, but when things get rolling during busy times of the year, and life outside of the farm provides additional time demands and distractions, simple hazards can quickly become catastrophic.  By addressing them in a proactive manner, on a regular schedule, potential injuries can be avoided.

Many experts agree that the biggest challenge to moving the needle on farm safety is getting farm operators to discuss the subject.  Much like the original intent and mission of the 4-H program, messaging regarding farm safety often reaches home via educational programming of youth.  Farm Safety days across the country work to educate rural youth about potential hazards found on farms and with farm equipment.  As operations grow larger, and youth spend more time away from the farm engaged in other activities, they are less aware of potential hazards when they are on the farm.  Of course it is also the hope of educators that these messages will be carried home by youth, and create dinner table conversations that encourage safety improvements on the part of adults.

It is also important for farm operators to share their experiences, so that others recognize potential risks.  Messaging through farm input retailers, agriculture lending entities, and various farm-serving organizations and government agencies work to keep farm safety in the forefront of farm operator’s priorities.  It is entirely possible that a coffee shop discussion of a minor farm injury, however embarrassing to the victim, might save another workers life in the future.  Unfortunately, as farming becomes increasingly competitive, conversations of incidents like these are less forthcoming.

Farm safety is not a new issue, nor is it one likely to become an obsolete topic.  As machinery becomes more advanced and safety features are engineered to combat common hazards, the danger of the equipment itself may decrease.  However, as long as there is a human component to farm operation, there will be potential for misjudgment and mistake.  Making farm safety as important as productivity may be deciding factor between a minor injury and a tragic loss.

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By Amanda Smith

Family farms are dynamic creatures, and their perpetuation requires extreme care.  Nothing is stable or stagnant, and creating a plan for the future requires careful consideration.  Many farm owners have created plans, or intended to, without attentiveness and intentionality.  The result is often financial devastation and family dissention.  Addressed here are some of the most common mistakes to avoid when planning for the continued legacy of your family farm.

Assuming you have “nothing but time”

The assumption that you have time to plan for transferring your family farm into new hands is possibly the greatest gamble you can play with your operation.  There are endless stories of family farms who were divided and destroyed by the untimely death of the farm operator, and countless other farms that have landed in the laps of sons and daughters who are too young and inexperienced to successfully manage on their own.

Keeping it close to the vest

“He left his fortune to some guy he barely knew” might make for a great line in a country song, but it’s probably not the legacy you want to leave with your family farm.  There may be nothing more frustrating for a potential farm heir that to be told “there is a plan, and you don’t need to worry about it.”  Such comments can often times leave said heir assuming that either a plan doesn’t actually exist, or they are not a part of it.

Communication is critical in succession planning, and the time for such communication to happen is not in an attorney’s office in the weeks following a funeral.  Keeping it a mystery is a mistake.  All potential heirs and managers need to fully understand the plan for succession, and how the distribution of assets will occur. In the best case scenario, they are a part of creating the plan.  Security comes in knowing what lies ahead for the future, and choices for heirs and their families become much easier when they are certain about their future.

Distribution of Assets is bigger than “Put your name on that”

My grandmother used to keep a roll of masking tape and a Sharpie marker in the junk drawer, specifically for the task of marking items in her home to go to certain kids and grandkids.  Much to no one’s surprise, that method was highly ineffective and haphazardly respected when it came time to gather our treasures.  Great dissention existed over a few antiques and several collections of dishware.

Family farms are storehouses of treasures, from Grandpa’s first tractor to Grandma’s favorite apron.  They tell the story of our generations, and they create grudges and heartaches that last for years when not divided with intentionality and legal backup.  Antiques and heirlooms are small beans next to the physical assets of a modern family farm.  It is not enough to make a list of your land and equipment, and trust it to the family to honor your wishes in dividing it.  Legally binding plans for distribution of assets protect your wishes, your legacy, and your surviving family’s relationships.

Assuming death is the only possibility for necessary succession

Agriculture remains one of the most hazardous occupations, with a very high incidence of death and disability as a result of accidents.  According to the Center for Disease Control (CDC), 100 workers are injured in farm-related accidents every day.  The rate of death is 21.4 out of every 100,000 workers, an incredibly high statistic.  Therefore, not only are agriculture accidents prevalent, they are also often very serious.  Not only do farm deaths and disabilities occur due to accidents, but they can also be caused by stress, pesticide exposure, extended term hearing loss, and other health-related issues.

In previous articles, we indicated that succession and estate plans need to include provisions for the transfer of management to occur before the current generation in unable to physically and/or legally make decisions.  If the current manager becomes incapacitated in such a way that they are not competent to lead, or at least sign over that responsibility to another person, everything remains at a standstill until the legal process can be completed.  If such a pause happens during a time when business decisions need to be made, catastrophic financial consequences can result from the delay.

In a future article, we will discuss how farm safety and farm accidents can be reduced in all sizes and types of agriculture enterprises.  Look for that in the coming weeks!

Failing to address the dynamics of your family

It should be somewhat obvious that not all farm families have the same personal dynamics, and therefore not all succession plans can be cookie-cutter simple.  In both the transfer of management and the distribution of assets, various family dynamics should be considered.  Here are a few:

Blended families require binding inheritance plans – if all of your assets are left to your surviving spouse, and the asset distribution beyond the spouses death is not clearly defined in a legally binding form, it is entirely possible that said spouse could alter your wishes in terms of asset distribution…leaving your children without the inheritance you intended.

Naming an executor or manager is bigger than “The one that is always there” – The child who stays home to be a part of the family farming operation may or may not be the best choice for its management in the future. Consideration has to be made regarding who has the best management abilities, experience, and intentions relative to your operation.  In the first article in this series we discussed how to navigate fair vs. equal, and in the second we looked at business structures that allow for varying types of succession planning and asset allocation.

Providing for family members who are disabled – In the case of disabled children, and even disabled or elderly parents who need continued care, provisions need to be made for asset allocation and medical power of attorney to support them.

It takes money to die

While the net worth of a family farm may be very large, often times the cash on hand and even highly-liquid assets can be very small.  If you have a non-farm heir and the plan is to provide them with cash upon your death, such a provision needs to be made for that.  Many times the obvious and simplest answer to this may be a life insurance policy.  However, you may choose to provide assets in other forms that do not damage the integrity and sustainability of the operation.  Making sure that ownership of assets is in proper order, so that timely sales can be completed, is also important to consider.  A well-defined succession plan is only effective if the assets can be accessed to follow it through.

Filing the estate plan, and forgetting it

The estate planning process is never meant to look like a round of calf-roping.  You don’t take off out of the chute, focusing on nothing but tackling and conquering the final document, and then throw your hands in the air and walk away when it is accomplished.  It is not a final destination.

A much more effective illustration is that of an artist’s great masterpiece.  If the family farm you pass on to your children is the greatest work of your lifetime, don’t you want it to be protected and handled with care?  A succession plan is the written documentation of the family farm and all that it entails, including the physical and human capital.

Da Vinci and Michelangelo often spent years creating a masterpiece in physical form, and many decades before that developing a vision for the great work.    The maintenance on these wonders continues still today.  A succession plan document is a work in progress, and requires maintenance even after the final draft.  Plans should be revisited upon all of these occasions, and more:

• Acquisition or sale of an asset, including equipment, land, structures
• Change in family dynamics – birth, death, marriage, divorce, relocation
• Adjustments in legislation regarding income, estate, and capital gains tax

The simple conclusion is that estate and succession plans can accelerate a smooth transition of your farm from one generation to the next, and the lack of such a plan can destroy a family’s farming legacy.  There really is no reason or valid excuse to delay the process, and a well-organized team effort is key to an effective plan.  This is not something to tackle on your own, but instead with a team of legal, financial and family constituents who have a vested interest in your family farm.

The first step is always the hardest, but can be as simple as a family meeting to discuss the vision for your farm’s future.  It may not be an easy conversation, but a necessary one to prevent your family farm legacy from becoming one of a failed operation, or worse even, that of a family torn apart.

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by Amanda Smith

“I shall never use profanity except in discussing house rent and taxes.”
-Mark Twain

If Mark Twain were a farmer today, he might change that statement to “cash rent and taxes”, but nonetheless, nothing stirs up profanity at the coffee shop like taxation.  When considering taxation relative to succession and estate planning, two key topics need to be addressed, capital gains tax and estate tax.  Both can influence the portion of your net worth that survives your death. In Part 1 of this series we discussed “fair vs. equal” and this article on taxes might be seen as an extension of that.

Selling a farm means giving strong consideration to the potential tax consequences

Although recent changes in the tax law that may influence the propensity with which you reduce income tax through charitable donation, you may choose to benefit charities of choice as an alternative to sharing a larger portion of your estate with Uncle Sam.  We will briefly take a look at implication of capital gains and estate tax.  In Part 2 of this series on Farm Business Structures we’ve outlined several ways to set up the farm for estate planning and these structures may or may not affect capital gains farm taxes. Please remember that this is information only, subject to changes in tax legislation, and should not be a substitute for consulting your estate planning team of professionals.

Capital Gains Tax on Farms

“A person doesn’t know how much he has to be thankful for, until he has to pay taxes on it.”
-Anonymous

Owning property, caring for it well, and leaving it as a legacy for the next generation, might be the greatest source of pride for any farmer, or any American for that matter.  Unfortunately, the greater the appreciated value of property over time, the more you are likely to pay in capital gains tax.  Capital gains is calculated based on the net sale proceeds minus the owner’s basis in a property.  If a property is held beyond a year, capital gains are taxed at a rate of 15% or 20%, in addition to any applicable state taxes.

Reducing capital gains taxes becomes a decision between several options, highlighted below:

Creating a charitable trust provides a lifetime fixed or variable income to the current generation owners. No capital gains are realized when assets like land and equipment are contributed to a charitable “remainder” trust.

At death, a charitable trust to the heirs provides them a lifetime of fixed or variable income. No capital gains are realized, and upon the death of the heirs the assets are distributed to a charitable organization for the purposes desired by the original owners.

In the case of no heirs, where the current owners want to continue to earn income from the operation, and then pass it to a charitable organization at death, property may be deeded to the organization effective upon the owner’s death. This results in a nice income tax deduction for the landowner for the value of the charitable organizations right to own the property, and allows ownership and operation rights for their lifetime.  For the duration of their lifetime they are entitled to all income from the property, and also continue to be responsible for taxes, insurance, maintenance and other operating costs.

In this option, the owner gifts farmland to a charitable organization during their lifetime or at death. No capital or estate taxes would be due with this gift.

If or when the heirs sell the asset, their capital gain realized will be limited to the change in value from the time they inherited the property until the time of sale.

Estate Tax

“A fine is a tax for doing something wrong. A tax is a fine for doing something right.”
-Anonymous

Transferring farm assets from one generation to the next, no matter if it’s during the owner’s lifetime, or upon their death, can be somewhat of a moving target when it comes to tax liability. To better understand how estate tax is defined and calculated, visit this article from Iowa State Extension. (Note: The figures have not been updated to reflect legislative changes in estate tax in 2018) Previous legislation held the limit of transfer without incurring estate tax to $5.49 million, in addition to unlimited transfer to spouses and/or charity.

Current federal legislation, in effect from 2018 through 2025, raised the limits of asset transfer to $11.2 million.  This is in addition to unlimited transfers to spouses and/or charitable organizations.  If you happen to have more than that to be thankful for, or plan to live beyond 2025 or the next Presidential administration change, you will want to pay close attention to legislation changes.

Keeping an accurate balance sheet that reflects current and expected fair market value is key to avoiding estate tax.  Because of the per unit value of not only farmland, but also other farm assets such as equipment, buildings, etc. the value of an estate can approach the $11.2 million per person limit rather quickly.  This is a figure you want to take seriously.  You will want to revisit your estate plan as you acquire assets to make certain you have not reached a threshold which might trigger estate taxes.

“Death and taxes may be inevitable, but they shouldn’t be related.”
-J.C. Watts

In the final article of this series, we will take a look at common mistakes in the estate and succession planning process, and explore a few tools that can be utilized to overcome hurdles when balancing fair and equal regarding heirs.

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By Amanda Smith

In the first article in this series, we addressed the issue of fairness, and how that impacts the residual profitability and sustainability of a family farm.  In this installment, we will take a look at various business structures and their benefits and challenges as it relates to transitioning the family farm from one generation to the next.  According to the 2014 USDA Family Farm Report, about 32% of farm operators in the U.S. are at least 65 years old.  This translates to 1/3 of the family farms in this country facing imminent transfer of management and ownership in the immediate future.

You may be asking yourself the question “When do I need to begin thinking about how my farm will transition after my retirement or death?”  The answer to that question is variable based on your particular family situation, but generally you should be addressing succession planning around the time that your children reach adulthood and are making major life decisions.

If you have a child who has shown interest in the family farm all along, and they are preparing to enter college, perhaps a discussion should happen about their choice of major as it relates to the farm.  What is going to be needed in terms of personnel in your operation, and what are the strengths of the child compared to the current managing generation?

If marriage appears to be in the near future for a child, you may want to consider the ownership of farm assets and protecting them in the unfortunate case of death or divorce.  The National Center for Family and Marriage Research at Bowling Green State University estimated in 2012 that about 10 in every 1000 farm couples divorce each year, and because there are many issues of property ownership, retirement distribution, debt responsibility, inheritance, and child custody with farm seasonality, these divorces can be cumbersome, expensive, and incredibly destructive to both the operation and family relationships.

I hate to use this old cliché, but when it comes to farm succession and estate planning, failing to plan can most definitely by planning to fail.  The business structure chosen for your particular operation can greatly impact the way assets are owned and transitioned from one generation to the next.

While you should certainly consult with your advisors prior to making any decisions, this can give you a simple overview of the options and how they impact succession planning.

The first business structure we will address is that of sole proprietorship, where all assets are held in the name or names of the current generation.  With regards to succession planning, farm assets can be gifted and/or sold to the next generation upon death.  With sole proprietorship the current owner maintains all ownership and management control until they either choose to retire or pass away.

The challenge with sole proprietorship arises when decisions are not made about the operation and estate and the current owner becomes disabled to the point of legal incompetency.  At this juncture, decisions about the transfer of assets and management can end in a court decision that may or may not reflect the wishes of the owners.  Often times, when a family farm is owned and managed in this way, delaying decisions about future management can cause the most competent potential heirs to lose patience and pursue another livelihood.  The other major issue of failing to plan in this case is the obvious discord that can develop between siblings who have to agree upon distribution of farm ownership and management, while at the same time processing the loss of their parents.

Let us transition to farms which are operating as corporations, and the current generation owns the majority of voting shares.  Much like sole proprietorships, corporation shareholders maintain ownership and management control until retirement or death.  Also like the previous structure, if they should become legally incompetent to make business decisions and no estate plan exists, court decisions are often needed.

The transition of shares upon retirement or death usually is an equal distribution of the voting shares amongst all heirs, which also allows for equal distribution of net profits, even when management is not shared equally.  In order to compensate the heirs managing the farm, a salary can be paid (which reduces net profits to all shareholders).  Another option is to assign the managing heir(s) a larger percentage of voting shares, and therefore net profits.

The third and final structure we will observe is that of the limited liability partnership or LLC.  Within this structure there are two types of partnership units.  General Partner units are held by those with who are providing daily management.  Limited Partner units are held by entities who will receive a proportionate share of the net profits upon decision of the General Partner to make a distribution.

The General Partner in an LLC has the authority to designate their immediate successor, along with providing language in the partnership agreement that outlines parameters for transition of the General Partner shares for the entirety of the operation’s existence.  The General Partner will maintain a share of the Limited Partner units to provide income as is deemed necessary, and can distribute the remainder of the Limited Partner shares to heirs both during their lifetime and upon death.

The benefits of LLC structure is the ability of the General Partner to stay in control of the operation with provision made for their successor at any time they wish to transfer it, including at death or upon legally incompetent disability.  During their lifetime, the General Partner can gift Limited Shares to heirs and/or charitable organizations.

The major disadvantage of and LLC would be where heirs lose patience with not having a share in management decisions, and only having a right to profits when the General Partner deems it necessary.  There are no guaranteed profits.  In the case of an LLC where the General Partner is transferred to the managing heir, and the Limited shares are held by the remainder, those holding only Limited Partner shares can likely only force a distribution if they can prove the General Partner is withholding profits deceivingly or being fraudulent.

“In this world nothing can be said to be certain, except death and taxes.”
-Benjamin Franklin

While you process through each of these business structures and their implications for your own family’s farm operation, look forward to the next issue of this series which will address tax implications as they currently stand for transferring farm and land assets.

*A large majority of the above information was adapted from a presentation by Laura Hansen Dean to local agriculture producers and leaders in Benton County, among other sources.  It should not be taken as legal advice.  You should always consult with your individual advisors before making any legal decisions. Information gathered from sources deemed reliable but not guaranteed, subject to change without notice.

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By Amanda Smith

Farming is really more than a livelihood, it is a lifestyle…and for those who have been blessed to grow up within a family farm, it is very much a legacy you wish to protect.  The desire to protect the family farm is inherent, the process by which that is accomplished, however, can be daunting and cumbersome.  Unfortunately, an overwhelming majority of family farm operations wait until tragedy strikes to approach this conversation…resulting in partitioned land, broken relationships, and legacies left in the hands of the courts.  This series of articles will be aimed at giving practical strategies and solutions for addressing the personal, business, and tax implications of protecting and preserving the family farm.

A proud hardworking grandmother and grandfather, walk hand-in-hand with grandchildren in a field of corn, on the Indiana family farm that will someday belong to them.

To make any attempt to create a plan for transitioning a farming operation to the next generation, or even to disperse the assets of an operation that has reaching the end of its lifespan, requires first understanding the dynamics of your family itself.  How many children are involved?  Which, if any of those children, have an interest in the management of the farm, and are those who have an interested qualified and capable of doing so?  Can the current size and scale of the operation effectively support the families contained within it?  How does your family define fair, and does fair mean equal?

Classically, there are two definitions of fairness.  The Roman definition lends towards “giving each what is due to them”.  The Greek settles on “fair and fair alike”.  If the Greek perspective drives the decision-making of the current farming generation each sibling, regardless of their education, family situation, and contribution to the farm has an equal claim to future management and distributions.  The Roman definition says that while no heir has less value than another, the management and profitability of net income should be allocated relative to each’s demonstrated dedication to the business.

The August 2017 Purdue Agriculture Economics Report takes a closer look at how family businesses define fairness, and how their viewpoint of fair relates to profitability.  According to the survey, family businesses can choose one of four definitions of fair.  The can choose to treat each family member according to their needs, according to their contribution, the same regardless of need or contribution, or the can simple choose not to define fairness at all.

The results of the survey conclude that coming to a decision about fair, or choosing not to, most definitely has an impact on the firm’s profitability.  There were two different surveys conducted, with varying differences in what percentage of firms define fairness in each of the four possible ways, but the profitability question was raised in one survey, and its results are eye-opening.

Families who choose to treat each member according to their contribution reported the highest incomes.  Because they likely focus on what is best for the business, they are able to maximize profitability.  This observation could conclude that they choose managers according to their ability to lead, and award responsibility and compensation accordingly.  This does translate to higher levels to tension between family members when there is resentment towards this method of defining fair.

Conversely, when family firms choose fairness as treating each according to their needs, profitability takes a back seat to compassion, and business profits often suffer.  Decisions are often made based on the needs of the individual family member, rather than the best interests of the firm.

Regardless of which definition you choose, based on your own family dynamics, there are consequences to that decision.  Once the choice is made, your business structure, plan for transitioning to the next generation, and methods to reduce tax liability can be addressed.  In the articles to come we will specifically address business structure options and their general benefits and challenges, how each impacts transition to the next generation, and the tools within succession planning that can reduce, if not eliminate tax liability. 

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By Amanda Smith

“The earth will not continue to offer its harvest, except with faithful stewardship.  We cannot say we love the land and then take steps to destroy it for future generations.” –John Paul II

There seem to be two schools of thought in life, and in farming.  There is the school which maximizes productivity, striving to utilize resources to their highest degree, and making the most of every opportunity for advancement.  The other would be that all things in life are somewhat fragile, and that the proper care and preservation of resources not only provides inherent productivity, but also sustainability of the resource for many years to come.  For the average human being, and the average farmer…the trick is finding a balance of these two schools.

Few would argue that the face of family farming has changed drastically over the last handful of decades…and that this balancing act becomes increasingly difficult.

I sat down with Leslie Fisher of the Benton County Soil & Water Conservation District, and Cindy Johnston, NRCS District Conservationist to discuss the current picture of farmland conservation efforts.  I opened our conversation by sharing a story.

Sometime around 1990 my dad and I constructed a 7^th grade science fair project demonstrating the effects of conservation tillage.  It consisted of three tracts of varying residue coverage, tilted at a slight angle, collecting the runoff in quart mason jars.  A simple scale model to demonstrate a revolutionary conservation practice.  With the assistance of a county-level SWCD Conservationist of the Year (a.k.a. Dad), it was award-winning!

The environmental and agronomical impact of conservation tillage has become, three decades later, a common knowledge amongst farm operators and farmland owners, and its implementation can be seen across the corn belt, and here in Indiana.  Here on Indiana farms in Benton County, recent torrential rains have left convincing evidence along areas of greatest flooding that no-till practices impact topsoil erosion.  There are lots of sources validating that covering soils with decaying row crop residue impacts erosion and the sustainability of the soil.

New conservation technology suggests that covering our soils with living plant matter can create even greater benefit.  My questions for our local soil conservation professionals were targeted at assessing current implementation of cover crops, and evaluation of the economics of this practice.  Both Fisher and Johnston indicated that there is a rising popularity of cover crop questions coming into their respective offices.  Despite targeted attempts to educate producers by both NRCS and SWCD, interest in cover crop utilization seems to most often be the result of curiosities founded in what is happening on the other side of the fence row.  Conversations often start with, “I noticed my neighbor is…” and continue with a hypothetical “if I were to consider cover crops, how would I get started?” 

According to the Sustainable Agriculture Research & Education Center (SARE), cover crops work in the following ways to enhance soil health:

• Feed many types of soil organisms.
• Increase the number of earthworms.
• Build soil carbon and soil organic matter.
• Contribute to better management of soil nutrients.
• Keep the soil covered.
• Improve the biodiversity in farm fields.
• Aerate the soil and help with water infiltration.
• Reduce soil compaction and improve soil strength and structure.
• Greatly reduce soil erosion.

Johnston indicated that 75-80% of the contracts she has administrated recently have cover crop implementation as a component, making it the highest funded conservation tool in the area.  All combined, the SWCD and NRCS funded over 6100 acres of cover crop implementation.

The environmental impact of the 1595 acres funded by SWCD resulted in 1636 tons of sediment prevention, and a reduction of 2300 pounds of phosphorus application and 4594 pounds of nitrogen.  It is estimated that the impact of this small acreage could be equated to the prevented contamination of 55 million gallons of water above drinking water standards.

The greatest hesitation for many with regards to cover crops may be adding one more management practice to an already difficult growing season calendar.  Or perhaps the concern with the cost of additional input costs compared to expected benefits.  So I asked the question, “What is the lowest risk method to try this out?” Cooperatively, Fisher and Johnston encourage producers to start with the simplest recipe of an aerial-applied mix of oats and radish.  This combination is a winter-kill mix, eliminating the need for any extra pre-plant management.  Funding initiatives through the NRCS Conservation Stewardship Program and the SWCD Section 319 Grant, which can be piggy-backed in priority areas of targeted watersheds, will nearly, if not completely cover the input costs for up to 3 years.  Essentially, operations can try this program on for size over several growing seasons, and assess the impact on their farms with very little economic risk.

In addition, farming input retailers are developing programs to assist farmers in managing input costs, maximizing productivity, improving utilization of USDA EQIP funding, and preserving land resources through partnerships.  Technologies being used by these retailers can assist farms in evaluating the impact of various conservation practices, including conservation tillage and cover crop plantings.

The most common question asked to farmland realtors is one of farm real estate market value.  Land is a capital investment for farmers, and its use must be balanced with maintaining its long-term value.  Would it be fair to equate protecting the land investment with cover crops to maintaining the roof on a large manufacturing facility?  Spending time and money on a roof may not add immediate value to the commodity being produced under it, but it has to be maintained to protect the product.  Likewise, our soils are the manufacturing facility for our food, and their preservation and protection are imperative to maintaining their value.
For every individual farmer, the balancing act of stewardship and profitability is a delicate matter.  Tasked with the challenge of feeding an exponentially growing population on a decreasing amount of land has to be weighed against preserving our land and waters for future generations.  Cover crops are just one tool in the box, but one that can improve our land and our yields.
For more information regarding cover crop implementation and funding availability contact:

Leslie Fisher, Benton County Soil & Water Conservation: 765.884.0660 or Leslie.Fisher@in.nacdnet.net

Cindy Johnston, USDA NRCS: 765.884.0660 or cindy.johnston@in.usda.gov

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By Amanda Smith

Now may be the time to pull the trigger on a new drainage project, or to explore cover crop implementation on your Indiana farmland.  Two USDA funding programs targeted at improving water quality in watersheds located in and affected by Northern and West-Central Indiana have rapidly approaching deadlines.  The Indiana Watershed Initiative and the Mississippi River Basin Water Quality programs are both accepting funding applications through March 16, 2018.

The Indiana Watershed Initiative includes funding for the Kirkpatrick Ditch in Newton, Jasper, and Benton Counties.  Led by the University of Notre Dame, it is aimed at reducing sediment runoff and improving soil health for plant resilience in high stress situations.

“The RCCP program is a good example of how we can leverage public dollars to solve local problems. The university is providing water quality data directly to farmers, allowing them to take control and make decisions about the resource issues on their land.  Farmers can see the impacts of cover crops on water quality and their bottom line. That results in more buy-in and a return on investment in conservation that benefits natural resources.” – Jill Reinhart, Acting State Conservationist for Indiana’s USDA Natural Resources Conservation Service

Historically projects funded through this program have focused on two-stage ditch systems and cover crops.  This funding cycle has been opened to also include projects implementing saturated buffers and denitrifying bioreactors, new technologies that provide similar results to more traditional drainage structures.  More information on this funding program may be found at http://www.nrcs.usda.gov/wps/portal/nrcs/detail/in/programs/farmbill/?cid=stelprdb1248173.

With approximately 18 million people and 50 cities relying on the Mississippi River for their water supply, USDA and NRCS work closely owners of Indiana farms and land on reducing runoff impacting the river and its supplying watersheds.  The second funding stream is aimed at improving water quality in the Mississippi River Basin, and provides resources targeted to these local watersheds:

Located in parts of White County Indiana and Benton County here >
Located in Benton County Indiana here >
Located in Tippecanoe County Indiana here >

The Mississippi River Basin initiative funding stream originates in two Farm Bill programs, the Environmental Quality Incentives Program (EQIP) and Conservation Stewardship Program (CSP).  These programs are aimed at encouraging farmers in adopting conservation systems to improve water quality, reduce erosion, enhance wildlife habitat, and restore wetlands.  Nutrient loss and sediment reduction are the focus of this particular high priority watershed program, and projects funded include but are not limited to:

• Cover Crops
• Nutrient Management
• Reduced Tillage (Residue and Tillage Management) and No-Till
• Filter Strips, Grassed Waterways and Contour Buffer Strips
• Wetland Creation, Wetland Enhancement and Wetland Restoration
• Edge of field practices, such as Denitrifying Bioreactors and Two-Stage Ditches (Open Channel)

According to the USDA, EQIP obligations to no-till cropping systems have declined in the last decade, as increased dollars became

Images courtesy of Indiana Watershed Council

dedicated to cover crop implementation.  This may be due producer recognition of no-till benefits and increased willingness to adopt no-till without EQIP payments to support the practice.  This has allowed funding to focus on areas that offer valuable conservation benefits, but at a higher cost to the farmer.

Detailed information on projects funding within the Mississippi River Basin Initiative (MRBI) is located at: http://www.nrcs.usda.gov/wps/portal/nrcs/detail/in/programs/landscape/?cid=nrcs144p2_031031.

Additional resources that may prove helpful when considering these types of conservation projects include Ohio State Extension’s Two-Stage Ditch Cost Estimator Tool and The Midwest Cover Crops Council Cover Crop Decision Tool. For a look at how one Indiana operation is utilizing conservation tillage in addition to cover cropping, check out this YouTube video featuring Rodney Rulon of Arcadia.

Images courtesy of Indiana Watershed Council

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Price Per Acres Land Values and Cash Rent Survey

• Ten (10) Counties are included in the West Central Region
• Top Quality Land Values Average $9,241 per acre
• Top Quality Land Values Cash Rent Average $279 per acre

Download the Full Report from Purdue University here >

View 2017 Q 1 Benton County Indiana Land Values Report >

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Our Quarterly Report on Farmland values and the price per acre in Benton County (featured every quarter in the local paper) is available below for your review!
Remember, when it comes to land values:

1. No two farms are identical
2. Location, Location, Location.
3. Soils & Drainage play a big role in the price per acre!

As always, call us with questions!

The price per acre for Top Quality Tillable Acres and agricultural farms in Benton County, Indiana remain strong in the first quarter of 2017. Highlights from our report include

• Top Price Per Acre: $10,381
• Highest Soils Productivity Index: 179 WAPI
• Lowest Soils Productivity IndexL 139 WAPI
• Total Value of Farmland Sold: $5,400,000
• Total Number of Acres Sold: 619 Acres

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Land Values and Farm Sales in Indiana

Whether you call it market corrections or stabilization, the farmland values of the local real estate market have been in a flux for a few years. Top quality land that is very productive continues to maintain a high price per acre, while average to marginal quality farms and land have seen declines as much as 15% or more in the last year or two. 

Key Factors to the Best Price Per Acre

Location

From local competition to the taxes per acre, the location of a farm continues to play a vital role in the price per acre. Farmland that sits next to high quality farm operators may bring more per acre, particularly when competition plays a factor.  Working with a  land broker that has relationships with local farmers and land investors also plays a vital role.

Soils Productivity

Regardless of your understanding of soil profiles and soil types, the productivity of a farm is a key component of price. Top Quality Class A farms will have a higher National Commodity Crop Productivity Index, or NCCPI, or Surety WAPI, Weighted Average Productivity Index than a Class B or Class C soils farm. As these numbers go up, they are indicators of the price per acre.

We track local farm land sales and can help valuate and determine the price per acre average.

Rainfall

Precipitation and annual rainfall in the local area also factor into the productivity of a farm and the price per acre. Top quality soils in Indiana county regions such as Tippecanoe, Benton, Warren, Carroll, White, Clinton and Jasper or Newton County can have a varied annual rainfall from 30 t0 40 inches of rain. These dynamics are key to cash rents, returns and the price per acre.

Return on Investment

From cash rent rates to farm real estate investment returns, the ROI of a farm is looked at from a buyer and seller perspective with different perspectives. A farmer will calculate input costs, while investors are looking at straight cash rent returns that are typically 2.8% or higher. Some flex leases allow an investor to gain greater returns when crop prices are on the upswing.

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How Funding Available in Benton County is being invested into local farmland to improve soil health and reduce nitrate runoff.

With extensive studies underway in Benton & Warren County to measure the amount of nitrate & phosphorus runoff in our local ditches, streams & watersheds. Several area farmers and landowners in the Big Pine Watershed are voluntarily taking part in nitrate runoff practices intended to prevent future regulation & all the while boost the bottom line to their operation by way of soil health.

“My yields have improved and I have been able to reduce nutrient applications to my fields.” – Don Knochel, Benton County, Indiana

2016 HighLights

From increased yields & better soil health, to a reduction of input costs, local farmers and landowners are realizing benefits of participation in the Big Pine Watershed project.

1,584 Acres | Total acres that received cost share $$$ in Benton County in 2016

2,020 Acres | Total acres enrolled in FieldPrint Calculator

2,544 Tons | # of tons of phosphorus runoff prevented by cover crops in Benton County.

$1.36 Million | Approx. $$$ value of 2,544 tons of phosphorus per USDA Cost study.

For more information about conservation practices, cost-share funding available in Benton County, contact Leslie Fisher at the Benton County Soil & Water Conservation District (SWCD) office at (765)-884-0660.

The Big Pine Watershed Project is currently a voluntary program that landowners & farmers can sign up for today. Depending on the location of your land, there are a variety of programs you may qualify for to get funding that will reduce nitrate runoff & improve the health of your #1 Asset – your land.

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Buying a piece of hunting property can be a daunting task. Think back to the first time you bought a car or a house. Think about all of the new “language” you started to encounter. All of the time spent collecting documents, and running to meetings with lenders and real estate agents can be very confusing, and this can be no different from purchasing a piece of hunting property. I myself still have no idea what escrow is, nor do I exactly have a desire to know what that is. I leave that up to my wife. So the better question is, where do you start? First and foremost, you need to find a property that will produce the species you are trying to hunt. If you are buying a hunting property, it is safe to assume you know what types of habitat the wild game in question prefers. Once you know what you want from the property itself, it’s time to start actively looking for this piece of property. Of course this search raises many other questions in itself. Where do I begin my search? What am I looking for in my hunting property? How much am I willing to spend? Is this a group investment? Can the property generate revenue to offset the price tag? These are all very common questions that you think about before making a large purchase such as a hunting property. Hopefully this guide will help you in making informed decisions to purchase a property that yields results at a reasonable price.

The first thing you need to decide on is a budget plan. How much can you reasonably afford and still live within your means? This is commonly overlooked meaning, people often buy a property that puts unnecessary financial strain on the individual and their family. No hunting property is worth putting your family through financial hardship. Each buyer is different in this regard, obviously based on how much they make, or how much money they can put aside, or how good their chances are for getting a loan. Do you have hunting buddies or family members that would be willing to split the cost of the property? If so, what are the hunting needs of all people involved financially? Once this information is gathered, you can start a broad search for properties that fit the description you or your investing group is looking for.

Financially speaking, the cost for the property is cut and dry, there are other “hidden” costs that need to be considered when buying a hunting property. You may need to purchase or rent heavy equipment to clear areas for crops, plant trees and food plots, clear access roads, or even create dams to provide wetland habitat on the acreage. A wildlife biologist can assess the property and inform you about what needs to happen in order to get a price ultimately dictating what you can get out of the property. The biologist can also inform you about various government programs that offer incentives such as tax liens or annual income if certain criteria are met. The Conservation Reserve Program (CRP) is put forth by the United States Department of Agriculture and aims to protect drinking water, reduce soil erosion, and preserve wildlife habitat. There are also numerous offshoot programs branching from the CRP program that can be accessed from the USDA webpage. If the property has, or will have tillable land for farming, you need to decide if this will be rented out or if you will become a part time farmer in this venture. A way to roughly check how much revenue is generated from existing farm acreage is to simply ask the previous owner or the farmer that utilizes these acres. You can then get a rough estimate of the annual revenue that can then be reinvested into the property. Whether that money goes towards wildlife

management practices on the property or towards the loan balance is up to you. There are also other forms of revenue that can be obtained that are commonly overlooked aside from the obvious such as farming. Let’s say you only use the property for deer hunting and depending on the seasonal dates set forth by the DNR in your state, your property may only get used a few months out of the year. You could consider leasing your property to other hunters annually for species that you may not be particularly interested in.

Leasing your land is a great way to generate extra revenue. There are inherent risks here in regards to letting others use your property and once again, a contract is a must to protect you and your investment. Of course, the amount of clients you can get to lease your property depends on if the species they want to hunt are persistently present on your parcel of land. This is something that could also be brought up in the management plan which we will talk about later. Now weather you decide to cash lease the property or exchange usage for labor is completely up to you. You may be able to find a farmer that needs a place to duck hunt that would tend your crops in order to have exclusive rights to hunt the flooded areas of woods on your property each year. This of course is just a thought. What tends to happen is a cash lease that is collected annually that benefits both parties involved. Depending on the size and features that are present on your property, you may be able to rent it out for weekend camping excursions, family reunions, or weekend camping retreats. It is all about who you know and how you can market your property to fit the needs of potential leasers.

Another avenue for revenue from a hunting property can come from timber sales. This is usually overlooked by many private land owners in regards to monetary gain. Something as simple as removing 10 to 15 trees every few years can provide some nice residual income from the property that can also be very beneficial for ecological diversity on the property. After trees are harvested, the resulting brush piles can be placed strategically around the property to further provide habitat for various species within the property. Certain timber species are worth more than others of course, and many of these trees provide food and nesting habitat for certain species on the property. It is up to the land owner with advice from experts, to determine the costs versus benefits for using the land for commercial timber operations and the scale at which they want to do this at. More trees removed generally results in more revenue, at the cost of disturbing the natural habitat and the species that call the property home. These are just a few components of a natural area that can generate revenue, but what kinds of things go into a successful hunting property and business venture?

One thing that is commonly overlooked is the amount of effort that is involved in tailoring a property to the specific needs of the potential land owner.  One of the things that many individuals find out, often before it is too late is that there can be an awful lot of work and time spent to mold your property into something special that makes those wall hangers stick around. One of the more common issues you see is that people make an initial investment in a property, and then year after year, do not harvest trophy specimens. What many fail to realize is that they can imbue management practices that increase their chances of taking a trophy animal. Of course, this is going to require many man hours to complete. Some of the work involved will be working with local wildlife management personnel, game wardens, and property owners surrounding your property to safeguard the animals that are taking refuge on the property itself. As mentioned earlier, if your property was a group investment, all parties need to be on the same page in terms of what is and is not allowed to take place on the property. A strong recommendation is that a lawyer be involved in creating a contract for each member of the group to sign to hold them accountable. The last thing you want is for there to be friction in your group, so guidelines need to be put in place before the business venture to protect all members of the group financially. This document can include everything from having “guests” on the property to hunt, financial aspects of what happens if an investor drops out of the contract, and also what each person’s duties and responsibilities are to effectively manage the property. You do not want to be the only member of the group actively trying to better the property, and then have some guy’s distant cousin that only had permission from one of the investors, harvest the buck you have been chasing for four years. Everyone involved needs to carry their own weight both financially and also with time spent helping with the annual chores for the property. Proper management is what forces trophies onto a property, and to best achieve this, it is strongly recommended that a wildlife biologist assess the property before purchase.

Having a wildlife biologist assess a prospective hunting property is one of the most important aspects of owning a productive hunting property. Their job is to provide insight into possible management practices that can improve the likelihood of attracting specific game species onto your property. Of course, this service is not free, unless a close friend is a wildlife biologist that may take a look for you as a favor and maybe a few cold brews, but for the rest of us, this will cost some money initially. After the management plan is laid out, it will also cost money and time to put these ideas into practice. Some of the key aspects that will be brought up in the management plan are pretty universal and this guide is meant to provide insight about these types of management practices, along with questions you can ask the seller, which you should think about when picking your hunting property.

The very first thing that the biologist will look at is the background information of the property itself. This will include a couple of things such as a list of the previous owners that may be contacted regarding the types of management practices they may have used on the property. It can also provide the biologist with a vision of what the property was like in years past to provide insight into how much has already been done to change the habitat over the years. Location of the property is another point of interest for the biologist. What county, distance and direction from nearest city or town, and roads used to access the property? This information will come into play in regards to the leasing portion that was mentioned earlier. Of course the location and how to get there will play a factor in how you market the property for potential opportunities for Return on Investment. These sources of extra income are nice, but the most important thing to consider is how your biologist is going to help YOU achieve your goals for the property and get the most out of your investment.

The first thing you are going to tell the biologist is your goals and objectives for the property itself. These are the keystone questions from which all management tactics will be derived, and the wildlife biologist will be able to effectively build a management plan based on a few criteria the landowner is hoping to achieve. Say you want to provide habitat for native wildlife and conduct enhancement practices that will produce trophy white-tailed bucks and also enhance habitat for bobwhite quail. Your biologist will be able to help you find the most cost effective management practices to fit your needs of the property. They can also provide input into further developing the property to harbor other species of native animals as well that can provide benefits to your property. A wildlife biologist will also look at the size and acreage of general habitat types. This is the part where the biologist categorizes your property into different zones such as agricultural, improved pastures, native grasslands, native brush or woodlands, wetlands or riparian areas, and number of ponds or lakes. This is what provides the framework for what you have to work with as the land owner and to utilize what is already present in your management plan. Understanding how to use what the space currently has to offer also provides insight into the historical management practices that have been used on the property that

Understanding the types of prior management practices and history of wildlife harvested gives the landowner an idea as to what kinds of upkeep, and costs associated with this, that will need to continue in order to have a healthy ecosystem. It also provides insight into what types of species have been harvested in the past. Management practices such as brush control, livestock grazing, range reseeding, controlled burns, and types of farming all provide keen insight into the fertility of the property in question.

Looking at the types of wildlife harvested in the past also provides specific clues into the baseline to work from to measure the success of the management plan. An example of clues for ecological worth of the property can be derived from a comprehensive hunting history highlighting weights, antler measurements, and number of deer harvested annually. Stocking of wildlife species which could include exotic or invasive species can also be useful information in your management plan. The biologist may even be able to find historical population densities that include information regarding sex ratios and species compositions from past wildlife census data. The historical records of the property are important, however, the current situation of the property is what you currently are able to work with.

The Current Situation of your property will provide the most immediate information to both the management plan and you the buyer. Things that the biologist will look for include current vegetation practices, current livestock grazing habits, how property is currently hunted, wildlife species present that includes predators, exotic species, and non-game feral species. They also look at the amount of natural and supplemental food plots available along with the habitat types and hunting practices of adjacent lands. A detailed Description of the habit will then be looked at. This will include topographic maps, meteorological data, aerial photographs and a soil sample map. Once all of the data is gathered and analyzed, the wildlife biologist will present the habitat management recommendations that best fit the property, and how you can achieve your goals for the property itself.

I sincerely hope this article has provided some insight into what really goes on in finding a hunting habitat that suits your individual needs as a sportsman. In part two of this article, we will look at a more detailed look into how you can determine the value of a parcel of land yourself. Part two will provide you with information on what to look for when admiring  properties before buying them. It will also cover specifics on traveling to the property and potential for a hunting lodge to be built, for scenarios that you must travel a great distance to the property and will need provisions during the hunting season. We will also take a closer look at how you can tailor the property to fit your needs and how to assess the surrounding habitat of your property to ensure you are making a solid hunting property investment. Discussion will also veer towards what you do after the purchase and what to look for in the future with your property.

Cheers and good luck in your search,

Jacob K. Hogan

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Soil, Nutrients & How Funding Available in Benton & Warren County are improving the bottom line for area farmers & landowners.

The Trend to Prevent Ag Farm Regulation in the Big Pine Watershed.

Year after year, regulation is a topic that makes the headlines. No matter what side of the fence you sit on, the Corn belt states of Indiana, Illinois & Iowa play a key role in the future of agriculture regulation.

Extensive studies are underway here in Benton & Warren County to measure the amount of nitrate runoff in our local ditches, streams & watersheds. Several area farmers and landowners in the Big Pine Watershed are voluntarily taking part in nitrate runoff practices intended to prevent future regulation & all the while boost the bottom line to their operation by way of soil health.

Growing interest from local & absentee landowners to improve soil health in conjunction with keeping nutrients on the farm is increasing annually.
“Cover crops are the way to protect our ground for future generations.” – Steve Wallpe, Benton County, Indiana farmer
ECONOMIC BENEFITS

From increased yields & better soil health, to a reduction of input costs, there are many economic benefits to participating in the Big Pine Watershed project.

Several programs & funding are available for:

• Cover crops
• Nutrient Managment
• No-till & Strip Till
• Bio reactors
• Two Stage ditches
• and more

HOW DO I GET INVOLVED?

Find out how local farmers & landowners are already receiving funding to reduce nitrate runoff & learn how many dollars you can get by contacting Leslie Fisher at the Benton County Soil & Water Conservation District (SWCD) office at (765)-884-0660.

The Big Pine Watershed Project is currently a voluntary program that landowners & farmers can sign up for today. Depending on the location of your land, there are a variety of programs you may qualify for to get funding that will reduce nitrate runoff & improve the health of your #1 Asset – your land.

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It’s nearly the 2017 Morel & Sponge Mushroom season and we are just as excited as you are to begin seeing and sighting this annual beauties! This year we are taking a closer look at hunting mushrooms in season on private property vs. public state parks, reservoirs and nature preserves.

Mushroom Hunting Laws, Rules & Regulations – Can I Hunt Mushrooms at State Parks and Reservoirs?

The first rule of thumb is that mushroom hunting for personal enjoyment is almost always permitted on state park and state reservoir properties, and there are no license requirements or laws to do so. HOWEVER if you are hunting and picking sponge mushrooms (morels) or other mushrooms such as puffballs or “chicken of the woods” shelf mushrooms for sale or commercial use you are not allowed to pick or hunt mushrooms at a state park or reservoir.

Mushroom hunting as well as wild berry-picking are some of the few activities that are fully exempt from licensing laws in Indiana, so it is OK to leave marked trails to look for morel mushrooms or other in season fungi in your favorite State Park or Reservoir! Some restrictions may apply in some seasons when hunting or other management activities are underway at reservoirs; check at the property office before you venture out. Restrictions may vary at state forest and state fish & wildlife areas. Always Contact the property office before you go afield. If you plan to mushroom hunt on private property, it is important to obtain landowner permission first.

Plain and simple. Hunting morel, sponge mushrooms , puffballs, chicken of the woods and other species of mushrooms for personal/individual use and enjoyment is permitted on State Parks & Reservoirs. No license or permit required. It is ALWAYS ADVISABLE to check with the local office of the property first in case of special circumstances that may limit or prevent mushroom hunting under special circumstances.

REPEAT. HUNTING MUSHROOMS ON PRIVATE PROPERTY REQUIRES PERMISSION FROM THE LANDOWNER. Really, it’s about mutual respect – ask a landowner and take it a step further by downloading a land use permit and you are creating a recipe for 2017 mushroom hunting season success. The IDNR has a free form that you and the landowner can complete that gives shows you have legal permission to be on the private property – download it here >

Hunting and picking morel mushrooms, sponge mushrooms, puffballs, chicken on a shelf or any other type of mushroom and selling them for commercial use or profit is NOT permitted at any State Park or State Forest.

According to the DNR, it is OK to hunt mushrooms in season in Indiana and simply walk the woods. You are allowed to leave marked trails at State Parks and Reservoirs, just be careful out there! REMEMBER – some state forests may have their own rules, always contact the local office!

When does mushroom season start in Indiana?

Generally speaking, mid to late April is the start of mushroom hunting season in Indiana. We have found mushrooms as early as April 10th on some warmer spring seasons. If you are seeking sponge mushrooms AKA Morels, they often grow out of the ground when the temperature of the topsoil has reached about 55 degrees Fahrenheit – the season continues on through May and Mother’s Day and stop when the ground temperature has gotten above 60 – 63 degrees F.

Best of luck this year and as always, give me a call and let me know where you found that big mess of shrooms!

Happy Hunting!

– Johnny

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What is Indiana Farmland Selling for in 2016 & 2017?

Indiana Farmland Values 2016 & Selling Indiana Farmland

Every farm is unique, but our experienced team can help you determine how much is an acre of land worth in 2016. Quality farmland is still in high demand and the price per acre can be very strong. When you are selling farmland in Indiana, it’s important to remember that there are 4 key factors to land values and price per acre.

1. Location
2. Soil Types / Productivity
3. Drainage
4. Rainfall

We offer professional services to evaluate and appraise farmland in Indiana for anyone who may be considering selling the family farm or tillable acres of farmland. The average price per acre in Indiana is based on three categories of farms including: Top Quality, Average Quality and Low Quality land.

For more information Call 765-427-1619

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In 2017 there are several important deadlines for landowners, farmers and producers to be aware of. Whether you need to enroll into government programs for ARC OR PLC or simply need to discuss a CRP project or contarct, here are some of the most important dates for enrollment, applications and farm loans in 2017.

Continuing through August 1, 2017: Enrollment for 2017 Agriculture Risk Coverage (ARC) and Price Loss Coverage (PLC) programs
January 31: Deadline to file Tree Assistance Program (TAP) application
February 2: Deadline to apply for Loan Deficiency Payments (LDP) for unshorn pelts produced during the 2016 crop year
February 20: Offices closed in observance of George Washington’s Birthday
March 15: NAP application closing date for beans, beets, broccoli, brussel sprouts, cabbage, canola, cantaloupes, carrots, cauliflower, corn, cucumbers, eggplant, garlic, greens, herbs, honeydew, hops, lettuce, oats, okra, onions, peas, peppers, potatoes, pumpkins, radishes, sorghum, squash, tomatillos, tomatoes, and watermelon
March 20: Organic producers and handlers can begin to apply for organic cost share assistance
March 31: Final date to obtain loans or Loan Deficiency Payments (LDP) on 2016 harvested small grains

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Rural Energy for America Program (REAP)

Through the Rural Energy for America Program (REAP), United States Department of Agriculture (USDA) Rural Development (RD) helps finance the cost of renewable energy systems and energy efficiency improvements for rural small businesses and agricultural producers.

A variety of energy projects may qualify for REAP financial assistance to help you purchase, install, and construct energy projects.

solar and wind power in coastal mud flat, renewable energy background.

Reduce your utility bills with energy efficiency improvements

• Install efficient lights and equipment with customizable controls to lower your electrical use. Many newer light systems also generate less heat and reduce cooling costs while improving lighting.  Lower your heating and cooling costs with equipment upgrades, insulation, programmable thermostats, and airtight windows, doors, and ducts.
• Depending on where your business or farm is located, solar panels could offset much of your operation’s energy costs.
• If you have enough wind and space—and if local zoning regulations permit—a small wind turbine could help you reduce energy costs.
• Small hydropower systems (less than 30 megawatts) transform the energy of flowing water into electricity.
• With a geothermal system, underground reservoirs of hot water can be channeled to the surface to heat buildings or generate electricity.
• An anaerobic digester breaks down animal waste such as cow manure and other organic materials into biogas that can fuel vehicles or be used to generate electricity and heat.
• Renewable biomass such as crops, wood, and plants, as well as biodegradable wastes such as fats, oils, and other materials can be converted into heat or biofuel.

What funding is available?

• Grant:  REAP grants may cover up to 25 percent of a project’s eligible costs.
• Renewable energy systems:  $2,500 minimum grant request; $500,000 maximum grant request.
• Energy efficiency projects:  $1,500 minimum grant request; $250,000 maximum grant request.
• Loan Guarantee:  With REAP, USDA RD may guarantee up to 85 percent of a commercial loan to help you access affordable financing for your energy project. Rates and terms are negotiated between you and your lender, subject to USDA approval.
• Combination Guarantee and Grant:  You may combine REAP grant and loan guarantee assistance to cover up to 75 percent of eligible project costs.

Grant applications are selected for funding based on a competitive process. In order to be considered for FY 2015 funds, complete applications must be received by USDA RD not later than 4:30 PM CSTas of the following dates:

• Renewable Energy Systems and Energy Efficient Improvement Grant and combination Grant and Guaranteed Loans: April 30, 2015
• Second deadline: June 30, 2015

Application Deadline: 

• Grants of $20,000 or less: October 31, 2016 and March 31, 2017;
• Unrestricted Grants (up to $500,000): March 31, 2017;
• Loan Guarantees are competed continuously throughout the year.

Renewable Energy Systems and Energy Efficient Improvement Guaranteed Loan applications are accepted on a continuous basis.

For more information about this program visit www.rd.usda.gov.

information gathered from sources deemed reliable but not guaranteed, subject to change without notice.

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Most people would agree that educating our youth about responsible money management, record keeping, and business operation are important keys to success. Programs and clubs like 4-H and FFA are the best examples of watching young people develop lifelong skills of responsibility, confidence and a sense of community. A unique program available from the local Farm Service Agency is available to qualified applicants that help our youth get started with income-producing projects such as 4-H livestock and even small businesses.

“The FSA Youth Loan Program teaches young people about the responsibility that comes with money, paying it back the bank, and how to complete a project from start to finish.”

The Farm Service Agency makes loans to youth to establish and operate agricultural income-producing projects in connection with 4-H clubs, FFA and other agricultural groups. Projects must be planned and operated with the help of the organization advisor, produce sufficient income to repay the loan and provide the youth with practical business and educational experience. The maximum loan amount is $5000.

“The process for application and approval is really quite simple and streamlined.” 

Youth Loan Eligibility Requirements:

• Be a citizen of the United States (which includes Puerto Rico, the Virgin Islands, Guam, American Samoa, the Commonwealth of the Northern Mariana Islands) or a legal resident alien
• Be 10 years to 20 years of age
• Comply with FSA’s general eligibility requirements
• Be unable to get a loan from other sources
• Conduct a modest income-producing project in a supervised program of work as outlined above
• Demonstrate capability of planning, managing and operating the project under guidance and assistance from a project advisor. The project supervisor must recommend the youth loan applicant, along with providing adequate supervision.

For more information Stop by the local Indiana FSA office for help preparing and processing the application forms.

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We have many people to thank for a great 2016. From farm families who trusted our team to handle a very personal once-in-a-lifetime sale of the family farm to our own families, friends and colleagues who have supported us in the farm real estate business, we are very thankful for a successful 2016.

2016 Recap

Many believed that we may see an increase in interest rates for loans on farm real estate in 2016, but as of today, this hasn’t happened. Additionally, farm cash rent rates (price per acre) adjusted downward for many farmers and while this has somewhat reduced ROI on lower quality farmland, investors and landowners of top quality tillable acres are still seeing cash rents in our local area over $300 per acre in some Indiana counties. Overall though, we have seen quite a bit of downward adjustment to account for lower farm incomes in 2016.

• No increases in farm real estate loan interest rates
• Cash Rents Adjusted
• Fertilizer & Seed Adjustments
• Land Values Adjusted based on Soil Quality & Location

By The Numbers

• 96% – total percent of listed price attained on all tillable agricultural farms sold by Geswein Farm & Land in 2016

• 1,055 total number of acres of land Geswein Farm & Land sold in Indiana in 2016
• Wooded Land Values continue to rise – stronger demand & low inventory
• Top Quality Farms – Some farmland sold for over $12,000 per acre in 2016

Who is Investing in Farm Real Estate?

Throughout 2016 we saw a new wave of farmers investing in farmland. Many farming operations that sat on the sidelines during the big run up in farmland values were frequently bidding on smaller tracts of agricultural land. Additionally we saw many Institutional Investors as well as private Investors moving 1031 money into agricultural farmland. Reason for land investment ranged from portfolio diversification to simply creating steady cash flow based on the longterm performance of farmland vs. the stock market. Several buyers indicated that having a tangible asset was an important factor in their decision to invest in farmland.

Wooded Property For Sale

The trend in 2016 for wooded land continued in the same direction as 2015, higher prices per acre, very little inventory for sale in Tippecanoe County, and an increase in the number of buyers. In areas such as Warren County, if the land for sale is in close proximity to West Lafayette, we continue to see the price per acre on the rise. Wooded property with timber value is also in a stronger demand situation. Low inventory of “wooded retreats” or wooded country estates has contributed to a continued run up in price per acre.

2016 Market Highlights

1. 460+ Acres of Wooded Land Sold
2. 145+ Acres Currently Under Contract
3. Multiple Wooded Tracts sold at $9,000+ per acre

As always, one of the most important parts of our job is to keep you informed of the market. In the meantime, we continue to monitor sales, the price per acre and where land values stabilize as investors seek to move money from the stock market to more stable long-term investments.

For more information, subscribe to our blog & Like Us on Facebook.

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FSAfarm+ Online Tool Let’s Farmers Get Data at Home vs. Local FSA Office

The U.S. Department of Agriculture (USDA) Farm Service Agency (FSA) has launched a new tool that helps farmers, producers and landowners access their FSA farm information from the comfort of their own homes or farm offices.  With the launch of FSAFarm+, any farmer can now search, view, and print any FSA farm data without having to visit the local county FSA office. This isn’t to say that you shouldn’t stop visiting your local office, but rather gives you a way to look at crop acreage maps and more without having to make a trip to town.

The program, known as FSAfarm+, provides you with secure access to view your personal FSA data, such as base and yields, Conservation Reserve Program data, other conservation program acreage, Highly Erodible Land Conservation and Wetland Conservation status information, field boundaries, farm imagery, name and address details, contact information and membership interest and shares in the operation. This data will be available in real time, at no cost to the producer and allow operators and owners to export and print farm records, including maps. Producers also can electronically share their data with a crop insurance agent from their own personal computer.

Farm operators and owners first will need “Level 2 eAuthentication” to access the webportal. This level of security ensures that personal information is protected for each user. Level 2 access can be obtained by going to www.eauth.usda.gov, completing the required information and then visiting your local FSA office to finalize access.

For more information on FSAfarm+, the customer self-service portal, contact your local FSA office. To find your local FSA county office, click http://offices.usda.gov.

Just a few of the features of FSAfarm+ that are appealing to be able to perform from the comfort of your own office, especially in the middle of a snow storm!

• Farmland and cropland information
• ACR/PLC bases and yield information
• CRP and other conservation program acreage
• HELC and WC status information
• field boundaries (common land unit)
• farm imagery
• name and address details
• membership interest and share information
• contact information.
• FSAfarm+ also allows farmers, landowners and producers to search for and print their farm and tract maps. This is a great tool for anyone considering selling a farm in Indiana as well.

For more information contact your local Indiana county FSA office

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Farm Safety During the 2016 Harvest

As we approach the 2016 corn and soybean harvest here in Benton County, it’s a great time for everyone driving the county roads to take a moment and reflect on farm safety. More farm accidents occur during the fall than any other time of the year and it’s everyone’s responsibility for safety.

Bright & Reflective SMV Signs & Flashers should be easily visible on equipment such as this planter.

Slow Moving Vehicles

One big danger during harvest are the slow moving vehicle on county roads. As farmers move equipment from field to field or haul grain on highways and rural roads, be on the lookout for flashing lights and bright slow moving vehicle signs. As a public service announcement, pay extra attention when driving on rural roads during harvest season, especially before and after work or school. Farm vehicles are large and move much slower than cars, the best advice is to slow down, pay attention and stay off cell phones while driving.

Here are a few tips for our farming friends & the general public to help make harvest is a safe one:

• Sunsets & sunrises can be blinding during the morning or evening commute in the fall. Please, pay attention and slow down at road crossings & intersections.
• Farmers, please make sure that Slow Moving Vehicle (SMV) signs are clearly visible on all off-road vehicles. Make sure SMV signs are in good condition and properly mounted.
• Use proper vehicle lighting & make sure your headlights and brake lights are functioning.
• Tractors & combines should use flashers at all times while on public roads. The American Society of Agricultural Engineers (ASAE) recommends two flashing amber lights, mounted at least 42 inches high, in both the front and rear.
• Turn on your headlights 30 minutes before sunset, until 30 minutes after sunrise. Also use headlights whenever insufficient light or unfavorable weather conditions exist. If your vehicle has automatic headlamps, check to make sure the switch is in the correct position.
• When trailering or pulling wagons, inspect hitches to ensure they are sturdy and properly mounted before towing or heading down the road. If equipped, use the safety chains.
• Be patient & share the road.

Benton County Sheriff Don Munson adds, “We need to remember that our local farmers are out there trying to do their job as safely as possible. Farm equipment is oversized and that means we need to exercise over-caution. Pay attention to your surroundings and be please patient.”

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Thank you to our families, friends, clients and all of those people who make us thankful this holiday season.

We wish you all of the best!

Happy Thanksgiving!

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As the economics of farming change, so do farmland values. In 2016, as commodity prices remained low and inputs remained high, land values have continued a downward adjustment.  While these changes occur rather slowly, our quarter by quarter review of the price per acre in Benton County Indiana indicates a drop of ~5 -12%   in 2016.

Avg. Price Per Acre YTD

Avg. price per acre as of March 31st was $9,965

The Avg. price per acre dropped  approx. ~6% by Sept 2016 to $9,337 per acre

Top Price Per Acre YTD | $12,435 w/ a Soil WAPI Index of 169.7 and 160 acres in one location

Low Price Per Acre YTD | $7,150 w/ a Soil WAPI Index of 146.1 and 61 acres with a ditch on farm

Overall Top Quality farmland is holding its value much better than avg. or low quality land. As always, the location, shape, soil profile, and drainage affect the value. In some cases, Wind Turbine income can still play a factor in the overall price per acre. In conclusion, we continue to see market corrections in Benton County farmland and far more buyers than sellers. Currently there are very few farms available for sale at the time of publishing this Indiana farmland values report and review.

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The opportunity to hunt on private wooded land in Indiana is a privilege that hunters hold in very high regard. It’s important to remember that each landowner may have different rules, requirements and instructions. Respecting the property owner’s wishes is important for more than just your chance to fill the freezer or the opportunity to bag a wall-hanger…it’s about safety & responsibility. Right out of the gate, especially with a new landowner or a wooded property you are hunting for the first time, get started on the right foot by building rapport and trust. Get a signed permission to hunt form at a minimum and here are a few tips to develop a long lasting hunting paradise that you can enjoy for years to come:

• Offer to help maintain the property throughout the year (pick up trash)
• Try mailing a letter to a landowner when asking permission to hunt
• After the season is over, send a handwritten thank you note
• Share in the harvest (who doesn’t like venison sausage, quail or pheasant?!?)
• Make suggestions for improving safety
• Communicate with neighboring landowners that you will be hunting
• Let those around you know your location in the event of an accident
• Never hunt private property without permission

Hunting on private property in Indiana

Learning the hunting laws, license requirements (deer, turkey, coyote, upland game birds, etc) and out of season rules well in advance of hunting season is a good idea for every hunter. Many people have questions related to Indiana code 35-47-2-1 as it pertains to hunting with a handgun without a license – when in doubt, always consult the local DNR Conservation Officer for clarification.

Last but not least, be safe out there!

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The last four (4) months of the year have several important dates that all producers and Indiana farmers may want to put in their calendars. Whether you have non-insured crops and are looking for disaster assistance or simply plan to visit your local office… here are the big dates & deadlines.

September 1: Noninsured Crop Disaster Assistance Program (NAP) application closing date for value loss crops for the following year (flowers for fresh cut, onion sets, turfgrass sod, Christmas trees, aquaculture, ginseng, mushrooms, etc.)
September 5: Offices closed in observance of Labor Day
September 15: Reporting date for cucumbers (planted 6/1-8/15 in Knox County)
September 30: Reporting date for value loss and controlled environment crop (for the coming program year)
September 30: NAP application closing date for garlic, wheat, barley, rye and mint for the following year’s crop
October 10: Offices closed in observance of Columbus Day
November 1: Final application for payment for 2016 ELAP for losses occurring 10/1/2015 to 9/30/2016
November 4: Final date to submit a prevented planting claim for 2016 fall wheat with 10/20 final plant date
November 11: Offices closed in observance of Veteran’s Day
November 15: Reporting date for perennial grazing and forage crops (alfalfa, grass, mixed forages, clover, etc.)
November 15: Final date to submit a prevented planting claim for 2016 fall wheat with 10/31 final plant date
November 15: NAP application closing date for perennial grazing and forage crops (alfalfa, grass, mixed forages, clover, etc.)
November 20: NAP application closing date for apples, apricots, aronia (chokeberry), asparagus, blueberries, caneberries, cherries, grapes, hops, nectarines, peaches, pears, plums, strawberries
November 24: Offices closed in observance of Thanksgiving Day
December 1: NAP application closing date for honey for the following year
December 15: Reporting date for 2016 fall mint, fall-seeded small grains
December 16: Deadline Extended: MPP-Dairy 2017 registration and election ends
December 26: Offices closed in observance of Christmas Day

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4 Tips for Buying Land on Contract

Buying wooded property, hunting land or Indiana farmland on contract can be accomplished when the buyer and seller agree to some pretty simple terms and requirements. Typically a buyer puts a down payment on the real estate of X% and the seller of the land becomes “the bank.”

The seller finances the remaining balance of the agreed upon purchase price, a certain interest rate and any other terms including default, possession, taxes, insurance, etc. Land contracts can vary in terms of length, amortization as well as other details such as closing costs, title and survey. The general rule of thumb though, is that the seller carries the loan for a fixed number of years, earning interest from the “contract sale” and at the end of the term a balloon payment (purchase balance due) is made to pay off the land in full.

Prior to entering into a contract sale, it is advisable to have an attorney or real estate broker review the contract. Land contracts in Indiana could have special challenges, and every buyer should take full consideration of every item in a legally binding contract.

Remember that the “legal title” to the farm, wooded property or land remains with the seller until the buyer makes the final payment. Once payment has been made in full and the conditions of the land for sale on contract are met, then the deed will be transferred, filed and recorded in the new owners name. Remember that you may incur closing costs & fees with this deed and should plan accordingly with the land contract.

As a buyer, defaulting on a payment or series of payment on a land contract can result in legal action and the forfeiture of the land and all money paid.  In other words, if the buyer fails to pay, the seller keeps all money received, plus the seller keeps the land real estate.

Only certain sellers will entertain selling land in Indiana on contract. Work with a land broker & real estate agency that has relationships with landowners that understand the pros and cons of contract sales and who are well-versed in creating win-win scenarios for the buyer and seller.

Since 1977 we have helped buyers and sellers learn about the process of purchasing a parcel or tract of real estate on a contract. Many of our most satisfied clients started by asking us, “What is a land contract?” and “How does it work?” Several of the farms, wooded hunting properties and development land parcels we have for sale can be purchased on an installment land contract. For more information call us direct at 765-427-1619

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Helping you buy & sell wooded property on or near the Tippecanoe River and Lake Freeman is one of our specialties. Whether you are interested in deer hunting, turkey hunting or fishing and recreation, we list real estate for sale and can help you find land that is available for private sale.

Our extensive network of wooded property owners, farmers and land investors helps us connect buyers & sellers of woods, wooded land and hunting and fishing property in Carroll, White, Tippecanoe, Clinton, Benton, Warren and Fountain County Indiana

From unique hunting properties, to weekend retreats and country getaways, we help people like you make the dream a reality. Whether you want to buy land or need a reputable land real estate broker to help you sell your property, we are the trusted team Since 1977.

As land specialists, we work exclusively with landowners that have unique properties that include streams, creeks, river frontage, fishing ponds and more.

New Listing

24+- Acre Wooded Property that Produces Income!

Rare opportunity to buy wooded land near the Tippecanoe River and Lake Freeman in Monticello, Indiana that includes a creek, woods and tillable acres.

Located in Carroll County, Indiana this wooded land is 5 miles from the Tippecanoe River and Lake Freeman and an ideal hunting property with fishing & recreational opportunities – potential for a home site or build a cabin too!

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We are excited to announce that we have moved our local real estate office into a new location in West Lafayette, Indiana at 928 Robinson Street.  Call us today at 765-426-6666 or 765-427-1619

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The annual PAER Agricultural Economy guide, reports on farmland values across the entire state of Indiana. One of the most respected surveys of agribusiness professionals, lenders and farmer operator producers, the report will highlight the trends in land prices and the price per acre.

The Full Report will be release in a matter of days and we will provide a full review of land prices of Top quality, average and low quality land throughout West Central Indiana counties of Tippecanoe, Benton, Warren, Fountain, Montgomery, Carroll, Clinton, White and Newton.

Whether you are searching for Purdue’s research findings on Cash Rent in 2016 or the results of the Purdue land value survey, we will get you the full details and link to the annual Purdue Agricultural Economics report 2016.

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Free Conservation Discussion & Field Tour for Women Farmland Owners in Tippecanoe county & Surrounding Indiana County area

July 27th, 2016 and open discussion and field tour is available to any women farm and land owners at the Lilly Nature Center, located at 1620 Lindberg Road, West Lafayette, Indiana, 47906.

“We estimate that women now own or co-own between one-fourth and one-half of the farmland in the Midwest and they are very interested in farming practices that benefit the health of their land,” said Jennifer Filipiak, associate Midwest director for the American Farmland Trust. “Our goal is to connect these women with each other and with the resource professionals who can help them with their farmland management goals.”

Women Caring for the LandSM meetings bring together landowners in an informal learning format for a women-only morning discussion followed by a more in-depth look at the characteristics of healthy soil and farming practices that promote it. Female conservation professionals are on hand to answer questions and share resources.  A participant from last year’s learning circle commented that is it “wonderful to hear experts who were women sharing their information and passion.”

Following lunch, area conservationists will lead a bus tour to view conservation practices on the ground. Discussion will focus on soil health and cover crops, but will also include water quality, wildlife management and government cost-share programs.  The Women Caring for the LandSM format was developed by the Women Food and Agriculture Network (WFAN) in Iowa. “We continually hear from women how grateful they are for a women-only learning environment,” commented Bridget Holcomb, executive director of the WFAN, “and they tell us that they are able to discuss issues that they wouldn’t feel comfortable bringing up in any other setting.”

On July 27, coffee and registration will begin at 8:30 a.m. and the meeting will start at 9.  Lunch is provided, and the program will end with refreshments at 3 p.m.

RSVP by 5:00 p.m. Friday, July 22 to Chris Remley, Tippecanoe County Soil & Water Conservation District at (765) 474-9992, extension 3 or chris.remley@in.nacdnet.net.  If you need accommodation please notify us when you RSVP.  And feel free to bring a female friend or family member, just let us know when you RSVP!

This session of Women Caring for the LandSM is sponsored by the Tippecanoe County Soil and Water Conservation District in collaboration with Women4theLand and the Women, Food and Agriculture Network. Staff from the SWCD, USDA Natural Resources Conservation Service, and other conservationists will be on hand to answer your questions.

More information can be found at the Women Caring for the Land website here:  http://www.wfan.org/our-programs/women-caring-for-the-landsm/

Article Provided by Tippecanoe County FSA Office & the USDA

Tippecanoe County FSA Office

1812 Troxel DR, STE C2
Lafayette, IN 47909

Phone: 765-474-9992
Fax: 855-374-4071

County Executive Director:
Stacy Helbert

Farm Loan Manager:
Eric Peterson

Program Technicians:
Alyssa Holt
Holly Humphrey
Holly Walters

County Committee:
Debra Kerkhove
Michael Peabody
David Swank

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In 2016, the Purdue University Department of Agriculture released its new Ag Barometer – a monthly reporting tool that keeps a close eye the overall sentiment and confidence in the Agricultural market.

The Purdue University/CME Group Ag Economy Barometer is a nationwide measure of the health of the U.S. agricultural economy, further strengthening Purdue’s position as both a national and global leader in the world of agriculture.  On the first Tuesday of each month, the Ag Economy Barometer provides a sense of the agricultural economy’s health with an index value, the data is provided from a monthly survey of over 400 producers and quarterly from over 100 agriculture thought leaders and agribusiness professionals.

“The Purdue – CME Group Ag Economy Barometer is a great tool in helping us tell the story of the business climate agricultural producers are facing,” said David Widmar, a Senior Research Associate at Purdue and Co-founder of AgEconomists.com.

Officially launched in May 2016, the team began collecting data back in October of 2015 and believes the Ag Economy Barometer will be a very valuable tool for the agricultural industry as a whole.

Many farmers and ag professionals might be familar with other ag surveys (DTN has one, for example), but these have different focuses. The new Ag Barometer allows for adjusments to questions and content every month, thus a more accurate reflection and measure of the situations that producers are facing in today’s challenging agricultural climate.

HIGHLIGHTS FROM THE APRIL AG BAROMETER 

“From the April data (released early May) we observed an overall uptick in producer sentiment. A rally in grain prices and (to that point) favorable weather conditions were helpful. With that said, the overall ag economy outlook is still bleak with more than 70% of ag producers expecting the next year to be “bad times” financially for producers. So while the outlook improved in the short-run, there are still long-run shadows lingering in the ag economy.” – David Widmar, Senior Research Associate of the Ag Barometer

With over 15 of Purdue’s top Ag Economists, Deans, Professors and more contributing to the the barometer, the industry is looking forward to seeing how the variety of factors that influence the market take shape.

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Where, When & How to Score Morel Mushrooms in the Woods

Mother Nature, Science, & Wive’s Tales to help you find morel mushrooms.

It’s been said that timing has a lot to do with the outcome of a rain dance and in this post we help you learn the best time of the year, locations and areas to avoid so you can find more morel mushrooms this season & beyond.

TOP 5 TIPS & TRICKS

Depending on where you live, the time of year that is best for finding morel mushrooms can vary. Latitude has a lot do with when mushroom season starts & stops. Here in Indiana, the season generally starts in mid-April and lasts through May. Spring time!

QUICK, What does an Ash, Elm or Sycamore tree look like?!? If you don’t know, well, you better start learning how to identify them. It’s very common in Indiana to find gray, black and yellow sponge morels near these species of trees. Slippery bark and even trees that are recently dead are tell-tale signs to finding morel mushrooms. Pro-Tip: Learn to identify trees by the bark & tree buds. Remember, it’s early Spring, the leaves aren’t out yet, so take the extra time to study up!

North. South. East. West. Not only are these compass points helpful to finding your way in & out of the woods from a safety perspective, but certain north or south facing slopes can hold more mushrooms.

Soil moisture content is key to the development, growth and size of mushrooms. One of the best methods and key tips to locating mushrooms is to search for moist soils. Areas where you may see large patches of green growth (grasses, native species plants and flowers, may apples, Dutchman’s breeches, etc) have a higher probability of growing mushrooms – especially if these moist areas are near the trees mentioned above.

Slow down. That’s right, the best advice and tip for finding morel mushrooms is to take your time. In it’s purest form, hunting mushrooms hearkens back to the day & age of the hunter / gatherer.  More & more, it’s necessary to unplug, disconnect and #optoutside – in learning how to find morels, patience is truly a virtue. When you find your first mushroom of the season, STOP. Don’t rush in, take a moment to look around as where there is one morel, there is likely to be another. If you go in too fast, you’ll risk stepping and crushing the surrounding morels.

“In every walk with nature one receives far more than he seeks.” – John Muir

When picking sponge mushrooms, remember to pinch the mushroom off at the base, right at ground level. Do not uproot the mushroom! Call it a wive’s tale, science or myth, but it has been said that if you uproot mushrooms that they may not grow back in the same location the following year.

Sponges, Morchella, Yellows, Greys, Blacks & Snakehead Mushrooms

The true holy grail of springtime in the forest, Morels are just as fun to hunt as they are to eat. Highly sought after by cooks, chefs and restaurants around the globe, these gourmet mushrooms are a key ingredient to sauces, pasta dishes and on the side with a steak.

Ecologists and mycologists tend to agree on one thing… no one truly understands how, when, why and where sponge mushrooms grow. Certain species of morels like grays and yellows tend to be found under deciduous trees like elm trees, ash trees or sycamore trees and stump or deadfalls. Some experts believe that burned forests (prescribed burns or wildfires) have some effect on sponge mushroom populations.

At the end of the day, mushroom hunting is about simplicity, getting back to nature and in many cases, camaraderie with family & friends.  We hope you are able to get out on some wooded property this season and have great luck in your mushroom hunt.

See you on on the land!

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What is the price per acre?

As a farmland broker, the #1 most often asked question is some version of “how much is farmland worth?” The answer isn’t as easy as one might think. While, there are methods, factors and multipliers to come up with a value in today’s real estate market, the price per acre inevitably falls into a range.

Factors Affecting Land Values

When it comes to tillable or agricultural farmland, the price per acre generally is a reflection of four main criteria. Location, Drainage, Productivity &

The old adage always holds strong. Location. Location. Location. Farmer/Producer buyers consider location one of the most important factors in determining value. Investors should also consider location in terms of access, rainfall, soils, and more.

Soil productivity is a primary driver in the valuation and appraisal of farm real estate. The 3-Tiers of farmland are Top Quality, Average and Low quality land. In many cases these are graded as A, B, C or D quality farms. Different soil types may have advantages over others for seasonal rainfall considerations and drainage.

Soil drainage affects the health and overall yields of crops. From water on the surface to sub-surface flow, the drainage plays a vital role in the price per acre and farmland value. The term “drainage” can refer to topography, soil type, outlets (ditches, creeks) as well as the subsurface nutrient holding or loss capacity.

Different buyers look at market factors in a variety of ways. Farmer producers analyze commodity markets, futures and expected yields or carryover to determine the price per acre in today’s market. Investors seeking to solidify ROI and returns may factor in how the stock market, bonds or bank CD interest rates are performing vs. cash rent rates of return. Higher expectations tend to drive up the price per acre of agricultural farmland.

Common tools for analyzing and determined farmland prices include inputs, leases, $/WAPI in the local market, just to name a few. Value is really the name of the game for farmland. Consider volatility of stocks, returns on T-Bills and inflation rates. Historically, farm land real estate investments are a great hedge against inflation and part of the successful portfolio.

Agricultural Land Investing

Historical Farmland Yields are Strong & Stable and ag investing is known as a long term, low-risk asset class that provides significant value over time. Some of the pros to farmland investments include:

• Asset Appreciation & Hedge against inflation
• Strong Absolute Returns on Investment
• Stability During Uncertain Economic Conditions
• Low-risk & Low volatility

Landowners with farm assets gain several advantages from passive income (similar to any real estate holding) to portfolio diversification, both of which are key drivers for reducing investment risk and maintaining stable growth of land value wealth over time – particularly during economic downturns.

These factors and many more are important to understand when buying farmland. The price per acre can vary based from county to county, the local market and comparable land sales are important to know.

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Selling the farm is a complex decision. Financial, legal and emotional concerns are a just a few of the important details that surround these large transactions, none of which are to be taken lightly.

After years of strong gains in the price per acre of agricultural farmland, many agree the peak occurred some time around late 2013 and into the spring of 2014. Since this time, the price per acre for agricultural land has seen, for the most part, some softening. Whether you are planning for retirement, have inherited the family farm or are simply looking to cash in on paper profits, there are several ways to sell a farm, including the installment sale. While many people prefer an outright sale with cash at closing, there are some tax benefits associated with installment sales that are certainly worth exploring. The challenging part is finding the right buyer who would finance the deal with a downpayment and contract, but at Geswein Farm & Land Realty, we belive in win-win scenarios.

An installment sale provides some flexibility to spread the capital gains liability out over several years. The end result allows for better tax planning methods and strategies.

The interest earned from a Promissory Note on the farmland installment sale could be higher than the net cash rent income produced by leasing the farmland.

After an installment sale, the only thing the seller has to focus on is collecting monthly interest payment. No longer will you need to manage the farm, renew farm leases, or maintain the property.

When penciling the math with your accountant, the value of a well-performing Promissory Note with interest can be greater the value of the farm real estate, particularly lower quality farmland.

Sellers: Family with several relatives that has inherited the Indiana farmland

Acres: 80 acre farm

Purchase / Sale Price: $750,000

How the Closing Works 

Getting Paid

The closing of an installment is very much a traditional farmland sale. The closing takes place through a reputable Title Company under what is commonly referred to as an “insured closing.” The costs associated with the closing are standard with the Seller and Buyer splitting the “closing costs” evenly.

Down Payment

• $150,000 paid at closing to the Sellers
• Promissory Note Original Amount: $600,000

Promissory Note Terms: Interest Rate of 4%. Interest to be paid annually on each anniversary date of the Promissory Note along with a $120,000 principal payment. Promissory note would be paid in full over a 5 year period. Promissory Note would mature in full 5 years from the date of the note.

Prepayment Penalty: 2% during the 5 year term of the Promissory Note, with the provision that with the death of the last spouse, the note could be prepaid in full with no penalty.

Collateral: The Promissory Note would be fully secured with a  1^st Security interest in the total acres of the farm (in this example, 80 acres of farmland) being sold/purchased. The original Promissory Note amount would be 80% of the purchase price, giving the Seller(s) their Promissory Note properly secured with a  20% equity/cushion. After the first anniversary principal payment is made, the equity/cusion increses to 36%.

Escrow Agent/Holding of Funds: A very reputable Trust Department of a local, regional, or national bank with an office in Indiana would be utilized to handle the details of the paperwork and transaction. The Seller(s) and Buyer(s) would split the annual fee for the Escrow Agent on a 50/50 basis.

Documentation for Closing:

1. A Warranty Deed for ownership of the 80 acres would be given from the Seller(s) to Buyer(s)
2. A 1^st Mortgage in favor of the Seller(s) in the amount of $600,000 would be executed by the Buyer(s)
3. A Release of Mortgage would be executed by the Seller(s)
4. The $600,000 Promissory Note in favor of the Seller would be executed by Purchaser
5. An Escrow Agreement would be executed by: The Seller(s); The Buyer(s); and the Escrow Agent. The Escrow Agreement would clearly outline the responsibilities and duties of all parties involved.

 After Closing Details:

Shortly after closing, a reputable title insurance company (e.g. Chicago Title Company), an Owner’s Policy of Title Insurance would be issued in favor of the Buyer(s) for $750,000 and a Lender’s Policy of Title Insurance would be issued in favor of the Seller for the $600,000 Mortgage.

The Promissory Note, the Mortgage, and the Release of Mortgage would remain in the control and possession of the Escrow Agent until the Promissory Note is paid in full. Once the Promissory Note is paid in full, the Escrow Agent would mark the Promissory Note “PAID” and the Escrow Agent would the immediately record the Release of Mortgage at the local County Recorder of Deeds office. Once the documents are properly recorded, then the installment sale of farmland will have been deemed fully satisfied and the responsibilities of the Escrow Agent will end at that time.

How are Annual Payments Made to Seller(s)

The Annual principal and interest payments would be paid from the Buyer(s) to the Escrow Agent. The Escrow Agent would then in turn distribute these payments to the Seller(s). The Seller(s) would be responsible for advising the Escrow Agent of any change in status of the beneficiaries of the Promissory Note and to certify to the Escrow Agent as to whom should receive the annual principal and interest payments going forward and at what address or addresses.

Commission Fees / Broker Fees

It is important to remember that the fees paid to the real estate broker are due and paid in the full at the time of the closing. Regardless of the timing of the installment sale and payments to the seller, the entire commission must be paid at closing. Generally speaking these fees vary based on total number of acres and the size of the real estate transaction.

While this is merely one potential method for selling a farm, it’s certainly not for everyone. Keep in mind that fees paid to the land broker or real estate agent must still be paid in full and are not spread out over the course of the installment sale. More often than not, this technique for selling a farm only comes into play during very limited circumstances.

At Geswein Farm and Land, we believe in creating win-win scenarios for our clients and when necessary, explore alternative options for the sale of a farm.

The information presented here is not to be construed as legal advice. Consult your tax advisor prior to making any decisions for an installment sale of farmland. Geswein Farm & Land Realty, LLC and its agents cannot be held liable on any matters related to an installment sale.

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Yes, it’s only February, but it’s always good to think Spring! Finding fresh morels in the woods and forests is my favorite time of the year. When the conditions are right, mushroom hunting season begins as early as Mid-April and lasts well into May. Pro-Tip: Mother’s Day is often one of the best days of the year to find yellow sponge morels. What better way to make Mom feel special than to cook her dinner with those fresh morels?!?!

The weather in Indiana during mushroom season is simply beautiful and filling the lungs with fresh air is a feeling right next to beatitude. Spending time outdoors with family and friends on wooded property is one of the most satisfying outdoor activities I can think of  and the window of opportunity doesn’t last long. As such, this further adds to the mystique of gathering morels from my favorite spots on the forest floor and the satisfaction one receives from preparing and cooking a fine meal with them.

Fresh Morel Mushrooms are best for any recipe!

Mushroom hunting season is short, you’re competing against whitetail deer, neighbors and the occasional trespasser for that rich, earthy goodness and texture that words can’t describe. I’ve been told that you can always buy dried morels at the grocery store, but that my friends is a serious error of judgement. Getting out into the woods of Indiana is the only way to truly appreciate this wilderness wonder. Whether you prefer them pan fried in butter or the key ingredient to a rich steak sauce, the morel mushroom is the holy grail of Spring time in the forest.

I am dedicating the 2016 morel mushroom hunting season to all the cooks and chefs that are satisfying appetites everywhere. Below are my own favorite ways to prepare and cook morels. Happy hunting in 2016!

Tried and True. Whether you are a traditionalist or connoisseur, the simplicity of a cast iron skillet, a pad or two of butter and crackling morels is truly satisfying. My preferred method is to halve the morels, rinse and remove any bugs, then gently roll in seasoned flour. Crispy golden brown and occasionally some burnt edges are sure to make the taste buds smile.

As soon as the word gets out about the start of morel season, you’re bound to have people dropping by just around dinner time. It never fails 🙂 That big mess of mushrooms isn’t going to cook itself and to feed the masses, my go-to is the fry daddy. Halve or quarter the mushrooms to take care of all the appetites, rinse (or if planning ahead, soak overnight in water), roll in Kentucky Kernel Seasoned Flour and fry them up in large quantities. Golden brown to perfection is always a crowd pleaser.

Morel mushrooms are famous for their rich flavors and the perfect compliment to sauces of all kinds. A creamy Alfredo with garlic, shallots, wine and fresh Parmesan will stand up to most any Italian restaurant. Pour the Alfredo over pasta and top with grilled chicken – Congratulations, you’ve just taken mushroom season to a whole new level. Get the recipe below.

A tender, juicy, marbled Ribeye steak. My mouth is watering just thinking about it. Seared on high heat to seal in those juices and topped with a red wine morel mushroom reduction sauce… you officially have a winner. Whether you prefer a thick cut or State-Fair thin cut, a sizzling Ribeye fresh off the grill is the perfect companion for those hard-to-find morel mushrooms. When the opportunity to cook such a fine meal only comes around once or twice per year, the anticipation alone is enough to make this your new favorite too.

Soon it will be Spring and April showers are just around the corner…for more woodsy wisdom, folklore and science behind finding morel mushrooms read the 5 Signs it’s Morel Mushroom Season. If you don’t have a place of your own to hunt mushrooms, here are several public NICHES Land Trust properties and nature preserves, open to the public from Dawn to Dusk.

Remember a few rules of thumb:

Location is Key (know your compass, know your trees, know your soils)

Don’t trespass on someones property!

Be patient!

Have fun!

Best of luck this year and as always, give me a call and let me know where you found that big mess of shrooms last season!

Happy Hunting!

– Johnny

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Keeping Tabs on Farms & Land Values in Indiana

The land market is changing. Keeping you informed of the latest sales, price per acre & factors affecting land values near your own farmland is one of the most important parts of our job.

In 2015 & 2016 we have already seen Top-Quality farms sell for over $10K per acre, while lower quality farms have slipped several percent in value.

Every Quarter we track land values in West Central, Indiana by County and can evaluate your own farms.

Subscribe to the Newsletter to get these reports Quarterly> 

Get a Valuation Report on my farm, Click Here >

We tract and calculate land sales results and all solds from public auctions, private treaty sales and public sales disclosures research. Our years of tracking has built our reputation as the go to farmland brokers for up to date information on Indiana land values and the most recent price per acre sold results. Comparing this data to Soil PI, CEC and more, we help investors, farmers and wealth managers buy, sell and invest in the right farms at the best price, generating the highest ROI potential.

Start a Conversation Today >

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BENTON COUNTY, INDIANA

West Central Indiana continues to maintain top land values in the state with an average price per acre of over $9,000 per acre. Some farms in 2015 sold well over $10,00 per acre. As the economics of farming shift, so do farmland values. In 2015 we saw commodity prices remain low, inputs remained high (with minor price drops), cash rents came down to some degree and all of the lower profitability of farming contributed to the downward adjustment of farmland prices.

While many top-quality tillable acres sold for over $10,000 per acre in 2015, average and marginal quality farm ground saw a greater adjustment in the price. As profitability forecasts for 2016 look to remain lower, we may continue to see further drops in the price per acre of farmland.

All said, high quality agricultural farmland in the right location may still bring over $10,000 per acre and we’ll report more in the very near future!

WARREN COUNTY, INDIANA

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Bringing Expertise to the Family Farm.

Growing up on the farm just outside Earl Park, Indiana, Jordan Berry spent many hours riding in the combine with his Dad and Grandfather. Today, at the age of 29 and equipped with a B.S. degree from Purdue University, Berry helps design, test and implement some of the latest technology that is moving precision agriculture machinery forward.

From a very young age, Berry’s father cultivated his interest in technology, from early cellular phones and pagers to computers, laptops and a wide variety of electronics. The remaining hours of his spare time were spent around his Grandfather’s and Uncle’s Massey-Fergusson dealership, climbing on machinery, seeking to understand how each part played a role in the entire machine.

Years later, Berry’s professional career has taken him around the globe, combining his biggest passions – Agriculture, Electronics and Technology.

Jordan Berry drives the new Gleaner S9 Series Combine. For the last 3 years, Berry has been part of the team who helped design, test, and bring to market the latest in precision Ag machinery technology used in this new combine from AGCO/Gleaner. – Photo provided.

How did you end up at AGCO?

“Back in 2011, I was offered an internship to get some work experience, combining my knowledge of their machines with the testing of a guidance system that AGCO already had under development.  Prior to that I worked for Peterson Ag Service in Remington, Indiana; focusing on sales and technical support for the AgLeader autosteer product lines. When the opportunity at AGCO presented itself, I knew I could put my Purdue education to work in a more hands-on environment, something I’d always wanted to do,” said Berry.

After a great summer internship experience, Berry was asked to come back for a second internship at AGCO in 2012 to be part of the new Technology Department – helping design new electronic steering controllers on nearly every wheeled vehicle that AGCO manufactures.  This work lead Berry to a full time position as a Senior Design Engineer for Harvesters in both software and electrical components.

What effect did your internships have on your education?

“I was able to turn my entire summer internship project into my senior design project at Purdue to meet the graduation requirements. Since I had spent all summer on the designs, my Senior year was much less stressful, giving me more time to focus on other core classes to earn my degree.”

What’s it like working from the design phase of components to final production?

“There is a lot of testing, refinement and continual improvement,” said Berry. “You work in a team environment where your work gets checked and you check other people’s work. He went on to emphasize that, “You have to be able to adapt, learn and listen to feedback from others.”

“The S9 Gleaner combine was a result of being asked, ‘How do we make a very advanced combine that the farmer can easily maintain and repair in the field?  This was the challenge and amazing result of our work.” – Jordan Berry

Being part of the ‘napkin-sketch’ of the designs and seeing the project all the way to a production model combine is something that Berry is very proud of and rightfully so. He helped design the components as an intern, then as a full time employee he helped integrate these parts, hardware and software into test machines in Germany and Italy. Eventually after years of testing and refinement in Texas, Kansas, Nebraska and a handful of other states, the new S9 Series from Gleaner was born. Berry proudly stated, “seeing all those years of work on the software and hardware come to life is a great feeling. More importantly, seeing farmers in the field using and enjoying the final product is unmatched.”

How will your professional experience benefit your work on the family farm?

“Understanding all of the components on our combines means we can reduce any potential downtime and get back in the field quicker than ever. Like any farm operation, no one wants downtime during harvest, and the S9 technology is a reflection of this – easier diagnostics and maintenance.”

• B.S. Degree in Electrical Engineering Technology, Purdue University
• Benton Central High School Graduate
• 10 Year 4-H Member

For those that know Jordan Berry, they’ll understand what I mean when I speak of his sincere demeanor. Mr. Dale Butcher, retired Agriculture teacher at Benton Central recalled Jordan as, “the kind of student who was just as interested in learning from those around him as he was to have the conversation. He was easy to talk with and for such a young person, it was a welcomed surprise.”

Throughout our interview, we drifted from the technical details of the S9 combine to the simple pleasure he takes in being part of the family farm in Earl Park. In March of 2016 Berry plans to move back home and work as a contractor for AGCO; splitting his time between designing components remotely and taking on a larger role in the family farm operation. It became very clear as Jordan and I spoke that his appreciation of rural America, his decision to return to the family farm and setting down roots in Benton County is a path he’ll find great success with.

Learn more about the new Gleaner S9 Super Series Harvester here

• Including S9 Performance Specs. (PDF).
• Technology, comfort & Convenience features

About the Author

The Back Forty is a regular column written by Published Author, Purdue Graduate and Farmland Broker Johnny Klemme. His reporting, interviews with Ag Experts, and more can be found here

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The price per acre of top quality farmland in Warren County, Indiana held strong from January 2015 through August 2015. With 5 farms selling during that time period of Q1 – Q3, there were both private sales, public farmland auctions and listed real estate exchanging hands.

One of the largest farms (total acres) was sold at public auction with a price of ~$8,500 per acre. During the same time period, the highest price per acre was $11,000 per acre.

As commodity markets continue to remain low for the time being, Location and Soil productivity or WAPI remain the big drivers in the price per acre. Lower quality farm real estate seems to have softened in value with a change of ~1 – 5% downward. With interest rates remaining attractive, there are still several buyers looking to expand farm operation and farmland investment real estate portfolios.

Opportunities for Buyers

The current market for farms in Warren, County is strong, but offers little inventory or farms for sale at the moment. At the moment, when farms do become available they are often sold very quickly as many buyers are ready, willing and able to purchase farmland in today’s market.

Opportunities for Sellers

With very few farms for sale in Warren County, a strong opportunity exists to sell farms quickly and at a very fair price per acre. Whether your needs are financial, retirement or legal, right now is a great time to market and sell farms in Warren County.

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Price per acre of top quality farmland in West Central Indiana

Farmland values in West Central Indiana indicate a slight shift of ~2% as our quarterly report on Benton County indicates above. Top quality farmland continued to change hands with many farmers selling large tracts at above the $10,000 per acre price point.

Overall, when compare to Q1 of 2015, the land values in West Central Indiana continue to remain the highest in the state. Investors continue to make their way back into the land real estate market, looking to invest on the downswing to improve the overall rate of return.

Current gross cash rents are producing ~3% gross return and as downward pressure continues, the land investment market will gain a stronger foothold as they seek to buy more top quality farmland in Benton County, Indiana.

Compared to ten years ago, land values remain at nearly 2.5 x times the value in 2005.

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USDA Announces $4 Billion in Safety-Net Payments to Farmers Amid Commodity Market Downside

Starting October 28, 2015, the USDA Farm Service Agency (FSA) will begin making payments to farmers to cover losses from the 2014 crop year. Approximately one-half of farmers with covered commodities such as corn, soybeans and variety of other crops will start to receive payments as part of the 2014 Farm Bill program.

For the first time, farmers, under the current Farm Bill only recieve payments when markets or poor crop years occur. The old direct payment program triggered payments regardless of the quality of the crop or price, the new program called ARC or PLC triggers a government payment only when commodity markets or severe weather cause unexpected or sustained drops in the price per bushel or farm revenues.

For complete details from the USDA, including a FAQ section, visit : www.fsa.usda.gov/arc-plc.

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What does the annual Purdue University Land Values & Cash Rents Survey Say?

In a nutshell, it indicates an adjustment in the price per acre and cash rents. Agricultural farmland prices typically work on the fundamentals of inputs and outputs for returns and certain areas of the state of Indiana, along with certain types of farmland are affected.

For those producers, landowners or investors that own farmland, the PAER annual report is a great tool to gauge the market. Over the years it has proven to be a very great barometer for where the state of real estate values are and how they affect the overall economics of Indiana agriculture.

The value of an acre of farmland in Indiana is never cut & dry. With so many factors affecting land values, it’s important to make a few distinctions about the types of farms / soils. PAER and most agribusiness professionals break down farmland into Top Quality, Average and Low Quality categories

There are 3 Categories of Farmland related to Productivity (number of bushels per acre that can be produced)

• Top Quality

• Average

• Low Quality

The PAER annual survey notes that price per acre averages are a mix of several different locations and soil types across specific regions and the state in general. Determining the actual value of an Indiana farm can only be determined by a land broker, real estate appraiser and the producer or land investor themselves.

How much are farms worth today?

Top Quality Farmland in West Central Indiana, including Benton County, Tippecanoe County, Warren County Carroll County, Montgomery County and others remains strong at a price per acre averaging $10,383 per acre.

Average Quality farmland in West Central Indiana came in at an average price per acre of $8,913 per acre.

Lower Quality farmland in West Central Indiana averaged $6,926 per acre.

Transitional Farmland

Land that sits close the city, near developments or improvements is considered to be “land in transition.”  Farmland in these areas typically becomes development such as residential home sites or commercial buildings or parks and follows the “highest and best use” model. This means that the “price per acre ranged from $2,800 up to $35,000 per acre,” according to the 2015 PAER report.

What type of return is there on Indiana farmland?

Average price of cash rent per acre on Top Quality Indiana Farmland in West Central Indiana was $334 per acre.

Average price of cash rent per acre on Average  Quality Indiana Farmland in West Central Indiana was $281 per acre.

Average price of cash rent per acre on Low  Quality Indiana Farmland in West Central Indiana was $224 per acre.

The Full Report

With commodity prices in continual flux (quite lower than they were a few years ago), input costs on the rise and the potential for interest rates to increase – the  value of farmland real estate is ever changing. From the expectations of the buyer and seller to the financial and emotional considerations that occur in every real estate transaction,

the old adage remains true – the farmland real estate market is local in nature and should not ignore the fundamentals.

DOWNLOAD THE PAER REPORT IN PDF HERE >

About the Author

Johnny Klemme is a published author, graduate of Purdue University and Land Broker specializing in farms, recreational property and development land in West Central Indiana. Born and raised on a local farm, his commentary on issues that are important to the farming and real estate community can be found at www.PrairieFarmland.com/blog

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We are very proud to bring to market a unique, curated collection of wooded, riverfront and hunting or conservation properties in the infamous Wabash River Corridor.

In our ongoing efforts to bring fine sporting property and conservation land to our many buyers, these tracts of land for sale provide many opportunities for buyers of all types to achieve their dreams of owning wooded land in Indiana.

• 5 seperate tracts ranging from 5 to 70 acres
• Miles of Wabash River Frontage
• Nestled near the renowned NICHES Land Trust Shawnee Bottoms & Portland Arch
• Dense Woods, Open Meadows & more!
• Ability to bundle or move boundary lines to meet your goals
• 50 Acres Wooded Property for sale
• 37 Acres Land For Sale
• 70 Acres for sale
• 11 Acre Wooded Hunting Property
• 5 Acres Woods for Sale

For more information on these parcels, Call Land Broker & Advisor, Johnny Klemme at 765-427-1619.

Geswein Farm & Land is the leading land real estate company in Indiana with a complete focus on Conservation Properties, Wooded Land and Agricultural Farmland. We believe in creating win-win opportunities for buyers and sellers with careful attention to service and detail. Our extensive experience with all things land – from conservation easements, CRP, EQUIP, WHIP, hunting opportunities to conservation agriculture techniques – coupled with our passion for your success are why we are the “go-to” Land Man.

When it’s time to buy or sell wooded property and land, talk to the land brokers who understand.

As specialists in wooded land in West Central Indiana, we’re very fortunate to have this great opportunity to explore, share and help you our valued buyers with the purchase of your dream property in rural Indiana.

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The 2015 PAER report takes a quantitative approach to farmland and cash rent values with its annual survey data.

The annual land values and farm cash rents report from Purdue University for 2015 was released this week and as always, these numbers and survey results have created an influx of interest, questions and conversation regarding Indiana farmland values. Recently I attended the Purdue Center for Commercial Agriculture Top Farmer Conference and got the inside scoop from industry leaders, including the likes of Dennis Badger, the Chief Appraisal Officer of Farm Credit Mid-America, Craig Dobbins & David Widmar, Ag Economists at Purdue University as well as RD Schrader, Partner of Schrader Auction Company – the conversation from these well respected folks centered around the latest information contained in the PAER 2015 Agricultural land report.

The annual PAER Purdue Agricultural Economics Report is considered to be a very  valuable source for landowners, farmers & producers, Ag lenders, and Agribusiness professional. The 2015 PAER land values report provides detailed the results of survey data sent to farmers and agriculture professionals throughout every region of the state to gauge trends in Indiana farmland values and where cash rents and the price per acre is perceived to be headed. It is important to note that this information is not real-time data, but a snapshot of the entire state that was conducted in June of 2015, compiled, crunched and released in August 2015.

Overall, this Agricultural economics report is considered to be highly regarded resource across the board.

Read the full report online >

Listen to the Podcast from Craig Dobbins >

There are many factors that affect the price per acre, including location, drainage, soils and rainfall… there are also several ways to calculate the value in today’s market, such as a Comparable/Market approach and Income approach

We look forward to sitting down locally with David Widmar and Craig Dobbins, one of the lead authors of the PAER Farmland Market in 2015 report and will be sharing their insights in our full review of the many factors that affect farmland real estate values, cash rents and production input costs.

Click Here for YTD 2015 Benton County Indiana Farmland Values Report >

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“The Older You Get, The Faster Time Passes.” – author unknown

Growing up, I remember listening to my parents, grandparents, and just about anyone older than me saying some version of that quote. I never really put much stock in it until many years later, today, where the moments seem to be fleeting. Today, marks one (1) full year since I started this farm and land real estate blog and website and I can say with conviction that the last year seems to have passed by very quickly.

Marked by several major milestones, both personally and professionally, it amazes me how much can be accomplished in a year when you set your mind to it. On the other hand, there are many goals I never reached and several I never got started on.

35mm Photograph of my hometown in Benton County, Indiana. Double exposure of an antique tractor and the wind farms.

My monthly Ag column, The Back Forty, is now syndicated in three (3) newspapers in West Central Indiana (and expanding to more!). This opportunity has helped me hone my skills as a writer, improve my listening skills while I interview Ag experts from around the country, and ultimately given me a creative outlet to produce something out of nothing – it’s been quite satisfying (even with the occasional bout of writer’s block). I am very thankful to Clayton Doty, who gave me an opportunity to start writing for the Benton Review, and catapulted my confidence in this endeavor.

So far in 2015, I have sold 280 acres of top quality Indiana farmland and wooded property. My goals was to help my clients by or sell 200 acres this year and in 2016 I will help my clients buy or sell over 500 acres. I feel very fortunate in the fact that I get to pursue my deep rooted passion for agriculture, and must give the biggest thanks to my mentor and friend, Ed Geswein. Ed took a chance on me when he didn’t need to. He’s had a very successful career in both commercial real estate and farm real estate for more than 30 years. He was about to “retire” when I starting asking him about the business…we often joke that he might never retire, but it’s quite clear that he loves what he does. For me, it’s amazing to see someone who has been fortunate to pursue what they love for so many years. It’s a spark and inspiration for me to keep going down this path too – I truly enjoy it and look forward to reminiscing years down the road…no matter how curvy, smooth, or bumpy it may get.

Last, but not least, a BIG Thank You to my clients for putting their trust in my ability to help them reach their own goals, be they financial, retirement, investment or recreational – I greatly appreciate the opportunity to work with you and for you. I am grateful for the friendships and relationships that we have created and look forward to staying in touch for many years to come.

Happy 4th of July!  One of my favorite holidays!

Cheers,

Johnny

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The Commodity & Futures Market Veteran Weighs in on Pricing the 2015 Crop

He grew up just south of Lafayette, Indiana and attended Darlington High School – today he’s known around the globe by farmers and investors for helping to take as much risk out of farming and marketing as possible. Since 1980, Richard Brock and his team of commodity experts have been producing the Brock Report, a 20 page weekly newsletter and daily market commentary, 3 times per day, on the state of corn, soybeans, livestock and more. Today, the Brock Report manages grain sales on approx. 700,000 acres in 14 states and strives to educate people on more than just the price per bushel, but market dynamics, historical trends and risk management.

Richard Brock grew up near Lafayette, Indiana and is a Purdue Graduate. As the President and CEO, he has been publishing The Brock Report for more than 30 years.

I visited with Richard Brock’s team during a seminar in Lafayette, Indiana and had the opportunity to speak privately with Richard Brock himself to get his opinion on the current state of the corn and soybeans markets, pricing and go-forward plans.

The Markets Today

“We are in a supply driven weather market. Once you identify what kind of market you’re in, you can identify how those markets are going to behave.” – Richard Brock, The Brock Report   June 2015

Explain the type of market we are seeing in June 2015 and your outlook?

According to Brock, “Supply driven weather markets are very short and they cause the market to spike. Markets like this typically don’t last long and we move through them very quickly, immediately followed by a market drop. All supply driven weather markets react in the same patterns and the odds are very high that we will have a top in this market before the middle of July. It wouldn’t surprise me to the top of this market trend before the 4th of July.

We’re getting to price levels now with both corn and soybeans that are going to be significantly above what we think the market will average for the year. Our approach is to look for a place to start scale-in selling because markets like this can, in one day, (for soybean prices) have a 30-40 cent trading range and corn with a 20 cent trading range. You need to have orders sitting there on a scale-out sale or you’re not going to realize the price benefits of this weather pattern.”

How does a weather driven market affect supply?

“Unless it keeps raining for the next 2 months, the crop that is drowned out in low areas is generally offset by crops sitting in the higher ground. Traditionally speaking you don’t get a huge cut in yields in a weather rally. In fact this is perhaps only the second weather rally I have seen in 35 years that is caused by too much rain during this time of the year. All said, it’s a very unusual situation to have this kind of weather market for corn and beans here in June 2015.

Supply driven weather markets perform similar to a drought weather market except that they typically turn and go much lower. Drought markets tend to hurt yields more than rain markets. The old adage “rain makes grain” generally rings true.”

“This is a market that will present some excellent opportunities for farmers to sell into, but it’s always about timing and preparation.”

What is your take on pricing the 2015 crop?

“Our goal and objective is that sometime here before mid-July we lock in a good percentage of this years crop. If December corn futures get above $4.15 to $4.20, we’ll look at this as an opportunity to, in some cases, get as much as 70% of this new crop sold. We believe those prices are far above what the market will average. In the case of soybeans, we are looking for the market to get above $10.30 and if it does, we’ll go to nearly 70% sold for the new crop.”

“This is a rally that we will be aggressive on.” – Richard Brock, The Brock Report

Looking historically, we’re not going into a bull market like we did in 2012 and we have a very large carryover of supply. Many estimates say that today’s carryover of corn is about 1.8 billion bushels, whereas back in 2012 there were approximately 800 million bushels of carryover.

What are your thoughts on old crop sitting in storage?

“Having old crop is very similar to baseball in that, you’re in the 8th inning, down 10 to 0, and there are two outs. It’s time to start thinking about tomorrow’s baseball game, take this rally, move that old crop and start thinking about next year.”

What factors are playing a role to help the American farmer?

“First off, the opportunities to market crops at much higher price levels have been there for a long time. The market has given farmers a lot of opportunities, some have chosen to take advantage of that and some have not. Look for price rallies like the one we are in today and make the most of it by doing a lot of forward selling. Think about the technology available to increase yields, when prices are down and you need to increase revenues, there are ways to better manage your operation to get the most out of your soils. Whether it’s new planter technology with multi-hybrid & variable rate potential, or getting the most out of nitrogen and chemicals, it’s amazing what can be done today.”

There are several schools of thought on the outcome of a strong market vs. a low market, but there are plenty of good things that can come out of low prices. When markets are down, it forces people to rethink their bottom line while, improve their management skills, and puts more emphasis on every marketing decision. Whether you agree with that or not, it’s clear that pricing today’s crop means paying more careful attention to the spikes and drops. When corn was $7.50, selling at $6.00 still meant a lot of great profits, but when a break-even hovers around $4.00, missing out on 50 cents is not be taken lightly. The sentiment among the farmers, producers, and agribusiness professionals I speak with daily is that you’ve got to take the time to learn to be a solid grain marketer. Going forward what will you do differently?

I welcome your comments, feedback and suggestions on this topic and all things Ag related

– shoot me an email at johnny (at) prairiefarmland.com

Want to learn more about The Brock Report? visit them online at www.brockreport.com 

As a full service commodity marketing agency, the Brock Report offers their customers:

• Daily Market Commentary via the web or smartphone app
• The Brock Report Newsletter – For over 30 years, a leading source of market intelligence and insights
• MarketEdge – highlights changes in USDA estimates, carryover, acreage & production that impacts commodity markets
• MarketWeatherEdge – weather risk analysis and commodity market intelligence

About the Author

Husband, Father & Author and Land Broker

The Back Forty is a syndicated column written by Published Author & Purdue Graduate Johnny Klemme. His reporting, interviews with Ag Experts and more can be found at www.Prairiefarmland.com/blog

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It’s no secret that the corn and soybean fields and farms in Indiana have gotten plenty of rain in 2015. We asked our friends at Zumwalt Aviation, an aerial seeding, spraying and application company in Sheldon, Illinois to give us a view of from above. Below is an image gallery that shows the ponding that still exists throughout much of the corn belt including farms in Indiana and farmland in Illinois.

*Note that you can see ponds, nitrogen streaking and loss of nutrients dues to heavy rainfall.

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The Commodity Markets according to John Perkins from Brownfield Ag News

An Interview with the Nationally Syndicated Radio Host

You’ve heard him on your local radio station for years, the distinguished voice bringing you the latest news and reports on the Commodity Market. He’s been relied upon for market predictions and trends in the future of corn, soybeans, wheat, cattle and hogs and is recognized as one of the premier commodity market reporters in the country. While he understands the importance of the markets to Ag communities across the country, John Perkins is more than just the voice, he’s an advocate for vital role that American Agriculture plays in our local and global economies.

“The global agriculture market is like a set of dominoes, you flip one and you’re going to knock a lot of others down.” – John Perkins, Brownfield Ag News

Broadcast on over 380 radio stations nationwide, John Perkins is known as the voice of Agriculture Commodity Markets in the United States. – photo provided

I caught up with John Perkins as he sat in the Brownfield Ag News studios in Jefferson City, Missouri where his Commodity Market Reports are broadcast to over 380 radio stations in 10 states, and got the inside scoop from one of the nation’s leading broadcast journalists.

What are the biggest factors affecting the price of corn and soybeans today?
“Without a doubt, the number #1 factor affecting the price of corn and soybeans is the surplus supply,” said Perkins without hesitation.  We have much larger supplies of corn and soybeans than we’ve had over the last several previous marketing years. On top of that, big corn crops in Argentina and Brazil are affecting the price along with South Africa’s recent bounce back.

In terms of other sectors in agriculture affecting corn and bean prices, Perkins commented on livestock saying, “Low livestock numbers also play a role in the price and today we are not feeding as many cattle or hogs. The PEVD epidemic has had a big effect on livestock numbers and to some degree, avian influenza are contributing to the current pricing trend.”

Perkins went on to reflect on the American dollar, stating that “recent dollar strength is definitely having a negative impact on commodity prices. A stronger dollar in a larger sense is typically a good thing for America, but in terms of agriculture and dollar-denominated commodities on the export market it’s not exactly that. U.S. corn and soybeans become higher priced and in turn reduce the export demand – we see this coming into play with corn in particular, but not so much with soybeans.”
What could change or influence the current market situation?
With a tone of concern, Perkins said, “Well, unfortunately, it would probably take a massive crop failure to turn the market around. That’s something that no one wants to see, myself included.

If we stay in this El Nino weather pattern that is expected to happen this summer, we’ll probably see another bumper crop.  This marketing year we are starting to see signs for an expansion of supply and that continuing into the next two years as well.

Looking back, we ended the 2013-2014 marketing years with ending stocks of soybeans as 92 million bushels and it’s only grown since. All in all, improved efficiencies, favorable weather, and scientific advancements in hybrid seeds and treatments are all connected to current state of the markets.
What excites you most about agriculture today?
“Anyone with an interest in agriculture is practically required to have some knowledge on a variety of topics. But what excites me most is the potential for agriculture to expand, be more influential, and be more integrated into the lives of more Americans. Food insecurity for many people across the globe will continue to be driving force toward innovations and the success of American farmers.”
What’s your long-term outlook for competing in a global economy?
“As much as we might want to stake our pride on the quality of the grains we produce, we have to recognize that we face competition from a lot of countries that are expanding their infrastructure at a greater rate than we are.

As recently as last year, America has faced infrastructure and transportation issues that have affected our ability to get commodities out into the market faster than other countries. Long-term, these larger issues should be addressed – getting better at shipping and transportation and getting our grains to market faster are key drivers for our long-term success.”

“Right now we are in a supply bearish environment and it’s a market we haven’t seen in quite some time,” added Perkins.

Interviewing Perkins was a good exercise supply & demand economics. John’s keen on the ways our national and global politics continually shape our agricultural future and ultimately our agricultural heritage. I think John would be the first to say that he doesn’t have a crystal ball into the future of agriculture, but he’s keeping a close watch on the pulse and will continue to be a strong voice each step of the way.

How can you listen to John’s Commodity Reports?

Tune in locally on the radio or visit www.BrownfieldAgNews.com

P.S. :  I asked John to give us the run down on The Top 5 Best Places to Eat in Jefferson City, Missiouri

…here they are

Best Restaurants to Eat at in Jefferson City, Missour

The go to for smoked meats, ribs and more. John Perkins recommends you make a visit here first!

Try the steak or polenta cakes… a sure fire win according to Perkins!

As far as international cuisine is concerned, Suwaddee delivers on every pad Thai dish on the menu. “The curry wont’ disappoint either,” said Perkins.

For the best in Nepalese, Korean and Indian cuisine, Perkins suggest you stop at the Everest Cafe on Missouri Blvd.

You’ll have to keep tabs on their location, but it’s worth searching them out! The jerk chicken is mouth watering!

About the Author

Husband, Father & Author

The Back Forty is regular column written by Published Author & Purdue Graduate Johnny Klemme. His reporting, interviews with Ag Experts and more can be found at www.Prairiefarmland.com/blog

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It’s Official, today, June 17, 2015 the USDA Enrollment Period for Agriculture Risk Coverage (ARC) and Price Loss Coverage (PLC) Safety-Net Programs begin!

According to the USDA  more than 1.76 million farmers and producers have elected ARC or PLC. Prior to the current farm bill, approximately 1.7 million farmers and producers had enrolled to receive direct payments from the USDA. The new ARC vs. PLC debate quickly occurred as farmers learned new rules, requirements and had to make decisions based on their own landowner status and crop history.

Additionally the USDA stated in a press release that nationwide, 96 percent of soybean farms, 91 percent of corn farms elected the ARC program.

The enrollment for ARC vs. PLC begins June 17, 2015, and will end September 30, 2015.

If you own farmland in Indiana, read our report and information provided by Dr. Chris Hurt from Purdue University here >

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In the first quarter of 2015 we saw a whirlwind of farm and land activity and to sum up the market in one word…. Adjusting. Lower commodity prices have created some interesting shifts in farmland values. As always, the price per acre is generally a reflection of several factors including (but not limited to):

1) Location
2) Size of the Farm
3) Soil Types
4) Drainage
5) Cash Position / Rate of Return

Top quality land sales remain strong, while lower quality tracts have slipped anywhere from 10-15% versus a few years ago. Overall, there remain very few farms for sale and many buyers in a position to make a purchase. The first quarter of 2015 has been full of activity and interest in Benton County, Indiana farmland from investors & farmers alike. Purdue University’s Land Value Survey reported that back in 2005 farmland prices were in the $3,500 per acre range for top quality land.

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Talking shop with the Nationally Renowned Farm Management Pioneer

In the world of farm management and farmland investment, the name Murray Wise is synonymous with high-quality agricultural farmland across the Midwest. For those that are unfamiliar, Murray founded the Westchester Group back in the mid-eighties, managing large land portfolios for investment groups and individual investors. At its peak, and prior to selling the company to TIAA-CREF in 2010, the Westchester group had over $1 Billion of total capital under management.

Farmland Industry Pioneer Murray Wise – photo provided

A graduate of Iowa State and armed with an MBA from the University of Illinois, Murray Wise has been recognized for his innovation in farmland sales, auctions and management from a variety of Ag industry professionals. Today he continues to run a thriving business, Murray Wise & Associates, providing real estate financial advisory and investment services.

I caught up with Murray Wise shortly after a short visit to his Champaign, Illinois office. As an industry veteran, his enthusiasm for agriculture and the viability of farmland as one of the soundest investments available was very apparent. While he remained cautious from an operations standpoint, he continually praised farmland real estate as an essential part of the success investor’s portfolio.

What is your view and outlook on the Ag industry today?
“Right now I would exercise a degree of caution by keeping a very close eye on cash flow,” said Murray without hesitation. Worldwide grain commodities are in a time of surplus and commodity price volatility could continue to be common going forward. “I lived through the mid-eighties and I certainly don’t want to see the loss of farmers we endured then,” Wise added.

What do you feel is the biggest change or shift in farming operations?
“Without a doubt, the #1 change is technology. From precision agriculture efficiency to drones, I am excited to see how the farm operation of tomorrow evolves,” said Wise.  “Another interesting shift is the number of young people coming back to the farm with a variety of college degrees. From CPAs to business school graduates, there are many young farmers who are adding a significant set of skills to the family farm toolkit. On a go-forward basis, there is a degree of complexity to farming that requires the ability to adapt. Those that adapt will continue to do very well for themselves,” added Wise.

How do you see farm data influencing the future of Agriculture?
“I am particularly interested in farm data and am keeping an eye on the changes occurring here,” said Mr. Wise with strong concern. “There is a bit of a civil war going on in the farm data space. You have John Deere, Monsanto and a 1,000 other companies who all want to do something for the farmer so they can harvest, store and analyze this data – not because they are being nice, but because there is a dollar value there.” While we can’t predict how farm data might fully affect the Ag industry, it’s an area that we need to continually pay careful attention to.

In terms of farm land values, what are you seeing in the land market?
In Murray’s opinion, “We are in a really unique land market with A and A+ quality land values remaining steady and in some cases higher per acre. On the other hand, B and C quality agricultural farmland has slipped with B land down about 10% and C quality land is down closer to 15-20% in value.” By historical standards, these land values are nearly double of what they were a decade ago. For those considering retirement, today’s market still represents a great time to sell.

When making on-farm improvements, where would you invest your dollars?
“I am a fanatic of tile drainage. In the last five years, I would venture to guess that per acre owned, I have installed more acres of pattern tile than any other person in the Midwest,” said Wise with quite a bit of seriousness. He went on to say that his own farms have good outlets and pattern tiling from ‘fence to fence’ on 50 or 60 foot centers has been one of the best investments in productivity he has made. Murray went on to say that, “Tiling is an asset that will pay for itself over and over and if you don’t have it, your loss in income (from yield you could be getting with tile) will be greater than the cost of installation.”

What’s your # 1 challenge in the farmland real estate business?
“There’s very little land for sale. We have less land for sale today than when I first started in this business 39 years ago. There are very few sellers of land and many buyers in a strong cash position.” Murray went on to say this to investors of farmland, “We are in a time period where the alternative investments to farmland may not make sense. If you are in a well-capitalized position, buying another tract of agricultural land could be a very sound move.”

We covered a lot of ground in our conversation, from the hard work it takes to be successful in Agribusiness, to the common traits of successful people – being smart, reputable, and being yourself.

One pattern remained clear when speaking with Murray Wise, farmland investment in today’s real estate market leaves no room for carelessness. Proper due diligence on location, drainage, soil types and rainfall are all key drivers in the successful purchase and sale.

About the Author

Husband, Father & Author

The Back Forty is regular column written by Published Author & Purdue Graduate Johnny Klemme. His reporting, interviews with Ag Experts and more can be found at www.PrairieFarmland.com/blog

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How the Principles of Timing, Tax-Advantages & Financing Multiply Your Profits

Sometimes referred to as the “donut,” transitional land typically refers to agricultural land or wooded property that is transitioning to a higher and best use such as municipal development, residential development, or commercial / industrial development. The investment into farmland or undeveloped land requires proper due diligence and typically thinking with a long-term strategy. The estimated value and price per acre of farmland or undeveloped land in the transitional market is varied and in today’s market covers a wide range.

Factors Affecting Land Values

Land real estate can increase and shift in value for a variety of reasons. Typically these include a change in zoning, installation or expansion of roads, city utilities and the proximity effect of a new development.

Transition Periods

When land goes from a non-use to a use or from limited-use to a higher and best use, there are increases in value. Owning land in this transitional period is vital to a higher multiplier of profits.

Tax Benefits

There are several tax advantages your investment into transitional land will have. Taking advantage of these benefits is key to real estate investments. Whether you are leveraging your purchase, utilizing a 1031 exchange for capital gains, or considering the variety of deductions to a hedge against inflation – transitional land represents one of the best opportunities for profits when appurtenances that qualify for depreciation are taking into account.

Knowing the Right Buyers

One of the most important factors in realizing higher profits is working with the right buyers at the right time. Whether they are investors, developers, builders, businesses or the end-users of the land, consulting with a land brokerage firm and land advisor with a network of these buyers is another key to success.

Financing Techniques

While every buyer of investment land and transitional land has a unique set of financial circumstances, there are many nuances to financing that factor into greater resale profits. From prepaid interest and interest only financing, savvy transitional land investors are very successful at pyramiding the profits from a land investment into greater and greater profits.

All said, the major emphasis on transitional land investment should be timing. A great first step is to build a relationship with those that are knowledgeable in the local land real estate market. Keep in mind that your land broker regularly works with buyer and sellers who have a successful track record in long-term planning to realize transitional land profits.

Request a FREE Guide to Transitional Land Profits >

Call 765.427.1619

Helping Savvy Investors Realize Maximum Profits

Husband, Father, Author, Land Broker & Advisor

Professional Land Broker & Advisor Johnny Klemme is a Published Author & Purdue Graduate

His reporting, interviews with Land & Real Estate experts, an advisory column and more can be found at www.PrairieFarmland.com/blog

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We are very proud to announce the official sale and closing of a beautiful, once-in-a-lifetime wooded property in Warren County, Indiana. Located in West Lafayette, this wooded land for sale featured a full 1/4 mile of frontage on the hidden gem known as Little Pine Creek. Full of recreational opportunity and minutes from Purdue University campus, the sellers were pleased to entertain multiple offers and tremendous interest in their wooded land.

“We are so very happy that we chose Johnny Klemme as our real estate agent. He understood all of the details of our wooded property and most importantly, he knew how to sell it to the right buyer.” – J. & C. Woody

This wooded property in West Lafayette, Indiana was very special in terms of location, features, topography, and wildlife. The setting for the home building site is perfect and the added bonus of a walnut grove, morel mushrooms and plenty of wildlife reinforces our passion for helping buyers and sellers of wooded land, hunting property and recreational land.

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About Us

Since 1977, Geswein Farm & Land Realty has helped landowners buy and sell wooded, recreational and hunting property in West Central Indiana. Whether you dream of building your home in the country or woods or simply want to purchase land to have for hunting whitetail deer or turkey, we are the go-to “Land Men.”

Every land broker and advisor at Geswein Farm & Land owns wooded & recreational property – we are experienced in the nuances of buying, selling, marketing and managing wooded property and recreational land for sale in Indiana.

For more information on current listings and upcoming / private listings of wooded property for sale in Indiana call 765-427-1619

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The USDA recently announced an updated and expanded Farm Storage and Facility Loan program, helping farmers invest into grain bin storage and upgrade corn & soybean storage grain legs with low-interest loans for financing these capital improvements.

In addition to offer low interest rates on grain bin construction loans, the USDA has lessened the security requirements for loans up to $100,000.

No longer are farmers required to put a lien on farm real estate or farmland, only a promissory note/security agreement is required for these low interest loans up to $50K.

Consult with your local FSA office or local bank to determine how to best pursue the construction of grain bins on your farm.

As with other USDA programs, the loans for the construction of grain bin storage must fall into eligible commodity categories and corn and soybean  storage in Indiana meet this requirement

It is always advised that you consult you local FSA Agent and Indiana county office about this loan program and what interest rates you may qualify for to build grain bins and grain storage on your farm.

For more information visit  www.fsa.usda.gov

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It’s that time of year when all of the woodsy wisdom, myth, fact, fiction, and tales about morel mushroom hunting make their way into conversations. Whether you are seasoned mushroom hunter or new to the chase, here in Indiana the morel mushroom season is part of a culture that cherishes the hunt as much as the mess of mushrooms frying in a pan or simmering in a morel mushroom reduction sauce.

5 Signs it’s Time to Look for Morel Mushrooms

1.  Flowers Blossom / Trees in Bloom
   Spring must be in the air to find morel mushrooms. As the early season flowers and spring ephemerals make their way out of the forest floor, all signs point to the start of the season. Take note of the trees that are budding! Whether you hunt near elm trees or fallen trees, mid to late April is typically when you’ll notice mushroom hunters recant tales of the holy grail they once found in their secret spot.
2. The Thunder Rolls
   Moist soils are a key ingredient to finding morel mushrooms in the woods. The seasoned mushroom hunter can often be found in forest areas where good drainage and sunlight go hand in hand. The spring rains should lift your spirit in anticipation of the great bounty of mushrooms that will soon be popping out of the ground! In Indiana we often find that sandy soils and clay loam soils are indicators of morel mushroom areas. Look for slopes that face West and get more sunlight as areas where early season mushrooms grow.
3. Gobble Gobble of Turkeys
   Another sign of the season is the gobbling of wild turkeys. While your mission may be to find that mushroom score of a lifetime, it’s just as enjoyable to be serenaded by gobbles, clucks, and the dance of wild turkeys. A bag full of gourmet mushrooms is certainly top of mind, but the simple pleasures of spring time in woods of Indiana is a feeling you’ll never forget.
4. Warm Sunny Days
   Much has been written about ideal soil temperatures and many mycology experts tend to agree that 45 – 55 degrees F is an ideal temperature for morel mushrooms. I make no claims to be an expert, but when mid-April rolls around and it’s t-shirt weather…I believe we are on to something.  In 2021, the first mess of morel mushrooms of the season were ready for picking in mid April (the 15th to be exact) and we continued finding them on into mid May.
5. Love Your Mother
   This is a shout out to Mom’s and Mother Nature! As Mother’s day falls on Sunday May 8, 2022, this is a great time to combine family time with an adventure for morel mushrooms! Yellow morels (Morchella Esculenta) are often at their peak during the 2nd and 3rd weeks of May, and what better way to supplement Mother’s day dinner than with gourmet mushrooms?!? May is often considered the best time of the year for yellow morels in Indiana.

First Morel Mushrooms of 2021 – April 15th

Who’s ready for the 2022 Morel Mushroom Season

2021 Morel Mushrooms found in the Month of May

The 2021 Spring season was very kind to fellow mushroom hunters and huntress’ here in Tippecanoe, Warren County and surrounding areas. We were fortunate to find several pounds of mushrooms well into the Spring season and post Mother’s Day.

Whether you own a wooded / recreational property in Indiana or simply have permission to go out on the family farm, we want to help you get started on a great mushroom hunting season in 2022! We’ll do our best to sort facts vs. fiction so you can get a better idea of when the best time and where the best locations for finding morels in Indiana are at.

Some people enjoy the hunt more than the mushrooms themselves and this is a major part of the experience.  For me, it’s about getting out into the woods, breathing in the fresh air, clearing the mind, and spending quality time with family & friends – adding a full sack of mushrooms is the icing on the cake. For many mushroom hunters, this time of year is equal parts tradition & folklore, and as the season takes shape I look forward to the campfire stories being retold from seasons past.

If you are looking for a place to hunt mushrooms, NICHES Land Trust properties and preserves are open to the public from Dawn to Dusk.

I wish you the best with the 2022 Morel Mushroom season and when you get a chance, let me know where you found that bag full of them last season, thanks! 🙂

If you are looking to buy, sell or invest in wooded property in Indiana, ideally suited for morel mushroom hunting, call or text 765-427-1619 today

We specialize in wooded property in Indiana where you can hunt morel mushrooms in season! In 2021 our company sold over 6,000+ acres of land in Indiana, across multiple counties, many of these properties were prime morel mushroom hunting spots.

If you are looking for 10 acres, 20 acres or even hundreds of acres to hunt, recreate or build a home or cabin, on…call #YOURLANDMAN

About the Author

Avid Outdoorsman, Author, Land Broker & Advisor

The Back Forty is regular column written by Published Author, Purdue Graduate and Farmland Broker, & Auctioneer Johnny Klemme. His reporting, interviews with Ag Experts and more can be found at www.PrairieFarmland.com/blog

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Taking Tile to the Next Level

Part 1 of a 2 part series

In agricultural communities across the country there continues to be shift in thinking about the on-farm practice of drainage (think tile) to water management. Every season, more and more producers across the state of Indiana are implementing more than pattern tile systems and moving toward fully controlled Drainage Systems – giving farmers control over the amount of sub-surface water in their fields at any time of the season.

During times of the year when farms don’t require as much water, farmers can manage the amount that is held in the subsoil. With a Drainage Water

Utilizing a control structure (above or below the ground), farmers with Drainage Water Management Systems can decide when and to what extent they want their tile systems to operate.

Management (DWM) System, landowners get all of the benefits of getting rid of the excess water when it’s not needed as well as draining no more water than necessary from the field. Additionally, with DWM systems, there is a reduction in nutrient runoff reducing nitrate pollution to waterways, ponds, and our interconnected water systems.

1. With controlled drainage, farm fields achieve full drainage before getting out for field operation.
2. During the growing season, drainage can be reduced to keep critical moisture in the soil.
3. In the fallow (post-harvest), productivity & conservation benefits combine when drainage can be turned off completely to retain the water soluble nutrients in the soil profile and reduce run-off.

Two leading factors that influence yield and productivity are excess water and the lack of water during critical plant growth periods.  Research at universities such as Purdue, Minnesota, and Kansas are producing results that show significant increases in yields and reduction in nitrate levels in drainage water. Chris Freeland, the Ag Drainage Project Manager at Dwenger Excavating told us that, “DWM has the capacity to bump yield several percent when managed properly.” According to a study conducted by Purdue University, nitrate level run-off can be reduced by an average of 20% annually.*

Drainage Water Management promises a lot of benefits, but it’s not meant for every farm or field. “Until you know what the challenges are for your field, and have made a solid plan, you can’t justify an investment in DWM,” added Freeland. In her ten (10) years of experience in soil and water management, Chris has helped design pattern tile and DWM systems for landowners across West Central Indiana and as more and more people look to farm smarter in response to rising input costs, Freeland recommends the following to anyone considering DWM on their own farms.

Identify Your Goals & Objectives
Whether the end result you seek is based on productivity gains, water conservation in your soils or if you are worried about potential legislation regarding nitrate runoff, your goals should be identified upfront to ensure the system meets your needs and budget.

Create a Plan
Once you’ve identified the benefits you want to achieve in a DWM system, the local NRCS office can help with a Conservation Activity Plan (known as a CAP 130). This plan is used to determine feasibility, action steps, cost analysis, and ROI. Those interested should contact their district conservationist to get the ball rolling. In many cases, NRCS/EQUIP funding is available to hire a certified technical services provider to create the plan for you.

Economics / ROI
Once you have completed a DWM CAP 130 plan with the NRCS, it’s time to look at the economics. How well can your investment in DWM be justified in yield gains, input savings, and conservation benefits? There are higher upfront costs associated with a DWM system, but when yield is considered a multiplier over time, the economic feasibility for your fields will become much clearer.

According to the USDA’s Indiana County Acres Summary**, nearly 80,000 acres or 30% of the farms in Benton County are ideally suited for DWM, with over 40% of the cropland acres in White County and approximately 18% of Tippecanoe County farms. While those numbers seem large, there are limitations to DWM including higher upfront costs, having the right soil profiles, slope, and topography.  Regardless of your goals, there remains a lot of opportunity to consider how Drainage Water Management could affect your farming operation.

Pros of Drainage Water Management

• Water Conservation, helpful in times of drought
• Improved Water Quality downstream
• Yield Multiplier / Production Benefits
• NRCS/EQUIP Funding available

Cons of Drainage Water Management

• Higher upfront cost
• Must have the right soils
• Topography / Slope limitations

It’s worth noting that Drainage Water Management and Subsurface Drip Irrigation (SDI) is not the same thing. SDI is an extension of DWM and once a DWM system is in place, you’re really just a few steps away from accomplishing Subsurface Drip Irrigation, a topic we’ll drill into in part 2 of this series.

Drainage Water Management and Subsurface Drip Irrigation have become very compelling production practices for the farmer of today and tomorrow. With potential for long-term yield boosts in both good and bad weather years, the risk vs. reward of these investments continue to paint a picture that as Chris Freeland puts it, “is more about farming smarter, keeping one of your biggest assets (your soil) as healthy as possible, and developing management practices that have the potential to boost productivity year over year.”

About the Author

Husband, Father, Author, Land Broker & Advisor

The Back Forty is regular column written by Published Author, Purdue Graduate and Farmland Broker Johnny Klemme. His reporting, interviews with Ag Experts and more can be found at www.PrairieFarmland.com/blog

*Drainage Water Management Impacts on Nitrate Loads in Indiana. – Dr. Jane Frankenberger, Roxanne Adeuya, , Nathan Utt, Eileen Kladivko, Laura Bowling, Agricultural & Biological Engineering, Purdue University, 2009 – 2012.

**Indiana Cropland Suitable for Drainage Water Management. – USDA Central National Technology Support Center, 2011.

Illustration Credit, Dr. Jane Frankenberger Purdue University.

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For many years “Precision Agriculture” and “Big Data” has given early adopters a leg-up in terms of efficiency and bottom line decisions – for others, the topic remains uncharted territory where the pros and cons are a topic of regular conversation.

No matter your preference of machinery, monitors, or software there are several aspects of farm data that should be on your list of concerns; including privacy, security, and how farm data is becoming increasingly valuable to the landowner.

“Right now there are  no real laws on the books that address farm data and no real laws protecting the rights of farmers with respect to their data.”

Renowned as a legal pioneer in the emerging areas of Ag technology, data and policy, Janzen first made a name for himself leading the charge to preserve the Right to Farm Act, which protects farmers from nuisance lawsuits. Janzen is currently the chair of the American Bar Association’s Agricultural Management Committee.

Todd Janzen, Agricultural Law attorney in Indianapolis is a legal pioneer in Ag technology and policy. – photo provided

Born on a small farm in Kansas and now based in Indianapolis, Janzen is known across the country as a leader, paving the way for the protection of farmer’s rights to the data they collect in field.

Your right to privacy and ownership of your farm data can have a major long term impact on yield, input costs, and land values. Jim Shertzer of FARMServer, a data analytics company born from Beck’s Hybrids, had this advice for farmers and landowners, “Before you sign any contracts for software or data collection, make sure you ask a series of questions about who has access to your data and how you can get all of it back.“

5 Important Factors to Consider

Collecting the Data
The first and most important step in the technology evolution of farming is to simply collect your data. “Farmers have always had this data, it’s just that it might be sitting in notebooks, spreadsheets or hard drives in a lot of locations,” commented Shertzer of FARMServer, “Getting everything into one place (while keeping a backup up copy) represents one of the biggest opportunities to be more successful in the future,” he added.

Calibrate Equipment Regularly
Just as you change filters, oil, and tighten belts, the equipment that is measuring, monitoring, and collecting your farm data needs to run like a well-oiled machine. Make sure you’re running the latest software updates and that your hardware is calibrated regularly. Collecting accurate data is vital to making informed decisions that affect your bottom line. Clean data is just as important as collecting it.

Store Data in Safe Place
Your data is valuable and it’s why big companies are investing so much money into this space. Over time, the data you collect will take up plenty of hard drive storage space and keeping it safe is key to long term profitability. Even if you are using cloud-based software, be sure to make a local backup copy on an external hard drive such as ioSafe or computer. This is especially important in the event that you switch software vendors in the future or sell the farmland. Being able to provide historical data about yields, fertility, and rainfall continue to be ‘on the radar’ to savvy buyers of farmland – the data sets you collect have the potential to influence land value.

Farm Data in Leases
Lease provisions for the ownership or shared ownership of farm data is a topic that is being talked about more and more often. “Savvy farmers, landowners and investors understand that data is one of the best indicators of production value,” commented Todd Janzen.  Janzen predicts that “eventually the law will establish that the “farmer” owns farm data. That means the tenant is the “farmer” and thus de facto owner of the farm data their equipment generates on the leased land.” If this is the case, a farm lease may need to clarify ownership of data and how the rights are to be assigned to the landowner. At the end of the day, consulting with your attorney is the best advice to follow.

Your Right to Privacy & Security
Back in November of 2014, the American Farm Bureau Federation, along with major players such as DuPont Pioneer , John Deere, Dow AgroSciences, National Corn Growers Association and Beck’s Hybrids to name a few, signed and released the “Privacy and Security Principles of Farm Data.”  This document set the benchmark across the United States governing the use of farm data collected from farms via sensor equipment hardware and software. Several of the companies that have signed this document are also in the farm data information business, helping producers collect data and analyze it – some offering services for free and others for a premium feature price.

The companies that signed off on this document have all agreed that farmers / producers own all of the data collected on the farms they own or lease, and that the producers have the right to control who gets access to said data. As an example, a farmer/producer has the right to allow or prevent their data to be shared with other agribusinesses, CPA’s, attorneys, or landowners/landlords as well as larger nationwide data collections. It’s worth noting that farm data tools like FARMServer (along with other farm management software) make it easy to share or limit the data you share with whomever you choose, giving you the control of the privacy and security.

“Our goal is to simplify precision Ag for farmers by first and foremost ensuring that the farmers own the data. From there it’s about secure web-based platforms that we have built ourselves – we don’t store data on another (third party) platform, this lets us build in more security and privacy.”

 Todd Janzen suggested in our interview that, “Producers should have a conversation with their technology provider and find out their policy on farm data ownership. Ask them who they share it with and make a determination on whether they have your (the producer’s) best interests in mind.”

We can’t prevent the technology evolution in Ag, but we can influence the way we adapt and move forward with it. The stacks of spiral notebooks that detail the history of weather conditions, hybrid selections, input costs, and your yield maps really tell the story of your farms. When compiled and analyzed, your farm data is extremely valuable to you and to others.

Preserving and protecting your farm data has evolved to become just as important to the farm operation as the other inputs and outputs – everything can be measured and managed. Many would agree that the rewards of doing so far outweigh the risks, but in today’s world a simple ‘click of the mouse’ means you have agreed to all the terms and conditions your software or hardware provider has set forth.

How you value your rights to ownership and privacy of data are decisions only you can make, but it’s definitely worth taking a closer look, asking the right questions, and protecting your rights.

About the Author

Husband, Father, Author, Land Broker & Advisor

The Back Forty is regular column written by Published Author, Purdue Graduate and Farmland Broker Johnny Klemme. His reporting, interviews with Ag Experts and more can be found at www.PrairieFarmland.com/blog

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Operated by the Benton Central Ag Alumni for the Benefit of the Benton Central FFA Chapter

This year nearly 50 FFA students and over 100 volunteers will work together to make the 41st Annual Benton Central FFA Auction a resounding success. Since 1974, the public event has grown into one of the largest FFA auctions in the state – all from a combination of hard-work, volunteerism and countless hours of planning.

This year’s auction, held on March 28th, is expected to draw a record crowd. For many that attend it’s a family tradition, for others a place to buy new trees and landscaping, for everyone in attendance the common thread is community spirit and friendship.

Larry Scherer has been volunteering his time since 1974 to help make the FFA Auction a success. It’s people like Larry, our teachers, students and other members of the community that have contributed to the Benton Central FFA Auction being one of the largest in the state.

From it’s humble beginnings back in 1974, the auction got it’s start through the suggestion of Dan Kerkhoff. “It was Dan’s persistence that really got Mr. Whistler and I on-board to start the annual auction,” said Dale Butcher, “Dan, Clarence VanShaffen, Larry Scherer and the late Darlene Whistler were instrumental in our early success,” he added.

Today the auction it has grown leaps and bounds, filling the entire parking lot with quality items that everyone can take an interest in. Historically speaking, “The first year the auction was held, it took us 45 minutes from start to finish,” said Larry Scherer of Scherer’s Auction Service. Quite the change from this year’s auction which will start at 9 AM, include twelve (12) volunteer auctioneers and approximately 1,000 bidders. “In recent years, volunteers like Brody Fox and Kristy Kretzmeier have added computer systems that help us get checks out door quickly and efficiently,” commented Mr. Butcher.

Countless FFA Alumni, parents and community members come together every year, putting in hours of work to help our FFA students with this successful event. Current chapter President, Senior Kenzie Kretzmeier said, “This is our primary fundraiser for activities during the year, it’s amazing how the auction gets so much support from both the farming community and Benton County in general.”  The FFA students refer to auction week as “Spring Break in the Parking Lot” as they volunteer their entire vacation to the success of the auction.

“It’s a fun, family-friendly event that has something for everyone,” added Kretzmeier.

For the students, the auction is a time of year that they look forward to, “it’s a very fun work environment where we learn valuable skills,” says Chapter VP Phillip Voglewede.

What has the FFA Auction Helped You Learn?

Everyone in the community is encouraged to attend and enjoy a full day of spirited bidding, food and fun.  Dale Butcher noted that, “The Benton Central FFA Auction is known as the ‘Agricultural social event of the year, it draws people from all over the state and signifies he end of winter and the start of the agricultural production season.”

What You Will Find at the Auction:

• High-Quality Trees, Shrubs & Plants
• Lawn & Garden tools and mowers
• ATV’s & Recreational vehicles
• Farm Machinery
• Trucks, Cars, Tractors & Wagons
• Livestock Equipment & Supplies to raise 4-H Animals
• Tillage, Planting & Spraying Equipment
• Local implement dealers showcasing equipment
• And much more!

Ag teacher Amanda Mullins noted, “This year we will have overnight security to prevent the theft of items.”

How Large is the Auction?

• +- 1,000 registered bidders
  
• Bidders from Illinois, Ohio, Kentucky, Missouri & Texas

Where Does the Money Go?

•  Items of $10.00 or Less are a Donation
• $10.01 – $100.00 are 15% Donation
• $101.00 – $500.00 are 10% Donation
• $501.00 – $1,500 .00 are 7% Donation
• $1,501.00 & Up are 4% Donation
• All Monies donated support FFA activities, events, scholarships and more.

When & Where:

• Saturday, March 28, 2015 – 9:00 AM EST
• Benton Central High School Parking Lot

On the Menu:

• Full service concessions all day long
• Coffee, Sandwiches, Chili, BBQ, Nachos, Cookies, Cakes Pies
• Bring the whole family and make it a day

For More Information Call 765-884-1600 Ext. 2164, visit www.bentoncentralffa.com or www.facebook.com/bentoncentralffa or email amullins(at)benton.k12.in.us

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Talking shop with the ‘Voice of American Agriculture’

Max Armstrong and his Farmall H Tractor. “Interviewing Max was a real honor,” said Johnny Klemme. “He gave me some great advice as an agriculture professional and on life in general.”

Situated at the dead-end of a dirt road in North Carolina, his two Jack Russell terriers by his side and a view of his horse farm, Max Armstrong, spoke with me over the phone in his distinguished radio voice, “I’ve got to live out my childhood dream for the last 40 years.”

As a boy, growing up on the farm in Southern Indiana, the nationally-known host of ‘This Week in Agribusiness’ and the ‘WGN Radio Saturday Morning Show’ dreamed of reporting on the events, news and issues important to the Agriculture community. Now, some forty years later, he generously shared with me his good fortune, hard work, as well as the challenges and opportunities he believes we are facing in agriculture today.

“I am optimistic about the future of Agriculture,” said Armstrong, “I encourage producers, farm families, and everyone living in a rural community to promote the increasingly important role that agriculture plays in the state of Indiana.”

What excites you most about Agriculture today?

“Everyone talks about technology, and I am excited about the capabilities of producers to analyze fields with UAV’s, making better decisions with farm data, and their ability to address problems faster and more efficiently. Just as exciting is the generational shift to tomorrow’s farmer.  Years of sustained profitability have helped farming families’ position the next generation to be successful – because it’s not easy being a new or young farmer!”

Max went on to commend younger producers for their willingness to embrace technology and maintain the values instilled in them from their parents and grandparents.  “Tomorrow’s farming operation enters a time of greater competition, but with the right tools and work ethic, there is room to be successful.”

What are the major obstacles or challenges we face in Agriculture?

“More than ever, farmers, business leaders and members of the rural community should be engaged in the political process. Whether we like it or not, the Ag community voice needs to be heard. By the time you get to Washington D.C. there are precious few representing the Ag community, but at the local and state level, there is a lot of opportunity.”

Armstrong commented that spreading the message of Agriculture can easily become part of our daily routine. “Every time you see your local officials, whether at the coffee shop or annual parade, shake their hand, and remind them about the importance of the Ag constituency.”

What advice would you give to todays and tomorrow’s farmer?

“We all recognize that it’s a competitive market. But I hope and pray that we keep the ‘family to family’ and ‘neighbor helping neighbor’ philosophy alive. Building relationships is the key to success in more than just farming; you never know when the person you just met could be sitting across the table from you, in a position to help you.”

On many occasions during our conversation, we circled back to this philosophy on life. Max reminded me several times, “Take care of the people around you and you will be successful; both on the farm and off the farm.”

What advice would you give young people today?

“You get a lot of wisdom out of the classroom, but the best classroom in the world is on the knee of your grandparents and parents. Sit with your parents, and listen to what they have to say. Mom and Dad may not be a whiz with their iPad or smartphone, but their life experience is worth more than you may realize.”

We covered a lot of ground in our conversation, from the hard work it takes to be successful in Agribusiness, not being afraid to get your boots dirty, and we even shared quite a few laughs about his iconic mustache and a our mutual interest in antique tractors.  The conversation continually circled back to Max’s philosophy and belief that we can all relate to; whatever your path in life, put in the hard work, resolve to help your neighbors, and you always get back what you put into something.

… And for those that may be wondering, Armstrong has only shaved his iconic mustache one time since graduating from Purdue in 1975. “The one time I did shave it, my wife and daughter were quick to tell me that I needed to start growing it back immediately,” said Armstrong with a laugh.

Where to See & Hear “The Voice of American Agriculture”

WGN Radio, co-host of the “Saturday Morning Show”

“The Tractor Shed” | A show dedicated to the history & restoration of antique tractors

Download “Max Armstrong’s Tractor App” for free on your tablet or smartphone

“This Week in Agribusiness” on the RFD Channel, DirecTV or DISH Network & local stations

About the Author

Husband, Father, Author, Land Broker & Advisor

The Back Forty is regular column written by Published Author, Purdue Graduate and Farmland Broker Johnny Klemme. His reporting, interviews with Ag Experts and more can be found at www.PrairieFarmland.com/blog

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Every season we see local farmers checking fields, counting bean pods, inspecting ears of corn or checking for damage dealt out by Mother Nature. While field scouting isn’t new, the methods and tools available continually evolve. New technology, in the form of Unmanned Aerial Vehicles (UAV) aka Drones, has made its way onto many local farms. This month I talked shop with several area farmers about their thoughts and experience with UAVs. While the uses are varied, the consensus is that a bird’s eye view of the farm can have a real impact.

“When you fly over you get an immediate sense of the whole field and a better perspective of your crop,” says agronomist Jason Carlile of Otterbein.

For the past two seasons, Jason has utilized his personal UAV to scout his fields; identifying issues affecting yields as well as opportunities to improve the bottom line.Carlile’s approach to Agronomy and customer service blends years of practical on-the-farm experience with the latest in technology – giving his farm land and seed customers an edge in terms of weather impact and timing of chemical applications to fields.

“When we can see an entire field that hasn’t tasseled, we can gauge how effect fungicide will be,” says Carlile. “This equates to bottom line value and real dollars.”

How Agricultural Drones Can Help Farmers

• Early Detection of Weed Pressure
• Identifying Streaks / Nitrogen Deficiency
• Timing of fungicide applications
• Identify the extent of wind / hail / drainage Issues
• Assist decision-making for input expenses

Most farmers would agree that the first ten (10) rows of a field do not tell the entire story. But, which direction do you go to get the full picture? Is 100 feet in the field far enough? 500 feet?  “When you catch problems in the field early on, before they get bad, there is a real impact on the bottom line. Aerial scouting can accomplish this and save me time,” commented Doug Brummet.

Consider this scenario: A big storm, with high winds and hail passes through Benton County. On the drive to the coffee shop you notice outside rows are damaged… But what does your entire field look like?  “A flyover after a wind event or hail storm would be very beneficial,” said another local producer.  Crop insurance is there for you, but a whole field photo or video goes a long way toward peace of mind.

In terms of input costs and ROI, Mark Flook added, “As margins tighten, an investment into aerial scouting could really provide great ROI. A better handle on crop conditions can help with a more informed decision; that can be the difference in several bushels per acre.”

While aerial field scouting can give people a real sense of confidence in their cash crop, seed, and chemical investments there are some restrictions and limitations. Currently the Federal Aviation Administration (FAA) does not allow agricultural drones to be used for commercial purposes. There are also privacy concerns as well as air restrictions that have to be taken into account. The story about the future of agricultural drones is still unfolding; currently they fly a fine line between regulation and agronomic value.

If your great-grandpa had told a story that someday tractors would practically drive themselves, he might have gotten some good laughs at the kitchen table. With aerial field scouting already a reality, what kind of stories will the next generation be telling about the family farm?

In related news, read more about how Benton County Indiana buzzes with new Amazon wind farm

And in our interview with Max Armstrong, he talks about importance of UAVs in agriculture

About the Author

Johnny Klemme is a published author, graduate of Purdue and Professional Farmland Broker. Born and raised on a local farm, his commentary, interviews with Ag experts & reporting on issues important to farming and land real estate can be found at www.PrairieFarmland.com

Committed to helping you achieve the highest returns

As leading experts in farmland and wooded property sales & auctions, we provide a complete range of services in the acquisition and sale of your farm land and agricultural investments.

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March 18, 2015, is National Ag Day and in honor and recognition of the 42nd Anniversay of Ag Day, events are planned nationwide in Washington D.C. and in agricultural farmland communities across the country. Classrooms and students will also be celebrating and promoting the importance of agriculture using this year’s theme “Sustaining Future Generations.”

Ag Day is an educational event to help more Americans understand the value of agriculture in their daily lives. Here are just a few reasons why we celebrate Ag Day in Indiana each year:

Increased knowledge of agriculture and nutrition allows individuals to make informed personal choices about diet and health.

Informed citizens will be able to participate in establishing the policies that will support a competitive agricultural industry in this country and abroad.

Employment opportunities exist across the board in agriculture. Career choices include:

• farm production
• agribusiness management and marketing
• agricultural research and engineering
• food science
• processing and retailing
• banking
• education
• landscape architecture
• urban planning
• energy
• farmland real estate and other fields.

• Beginning in kindergarten and continuing through 12th grade, all students should receive some systematic instruction about agriculture.
• Agriculture is too important a topic to be taught only to the small percentage of students considering careers in agriculture and pursuing vocational agricultural studies.
• Agricultural literacy includes an understanding of agriculture’s history and current economic, social and environmental significance to all Americans. This understanding includes some knowledge of food, fiber and renewable resource production, processing and domestic and international market

On March 18, 2015, ACA will host major events in the nation’s capital, including the Mix-and-Mingle Luncheon and the National Celebration of Agriculture Dinner. Additionally, the ACA will bring approximately 100 college students to Washington to deliver the message of Ag Day to the Hill. These events honor National Agriculture Day and mark a nationwide effort to tell the true
story of American agriculture and remind citizens that agriculture is a part of all of us. A number of producers, agricultural associations, corporations, students and government organizations involved in agriculture are expected to participate.

National Ag Day is organized by the Agriculture Council of America. ACA is a nonprofit organization composed of leaders in the agricultural, food and fiber community, dedicating its efforts to increasing the public’s awareness of agriculture’s role in modern society. In addition to the events in Washington, D.C., on March 18, the ACA will once again feature the Ag Day essay, poster and video contests.
Visit www.agday.org for more information on National Ag Day in 2015.

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Wooded land full of wildlife!
1/4 mile long bluff with Walnut grove!
Pasture and approx. 15 acres tillable farmland in Tippecanoe County, Indiana!

Lots of active buyers, plenty of backup offers on this highly desirable wooded property for sale in Tippecanoe County, Indiana. Congratulations to the winning buyer, sold at $310,000 or $6,200 per acre for wooded land and pasture.

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The Benton Community Foundation recently announced the 2015 “Toast to Agriculture” event featuring renowned voice of Agriculture, Max Armstrong. The spring event features a cash bar reception, dinner and updates from the Benton Community Foundation. Following dinner, everyone’s favorite radio host and TV personality Max Armstrong will speak on a variety of topics that are important to the ag community.

Guest Speaker at the event is Max Armstrong, star of ‘This Week in Agribusiness’ and ‘The Tractor Shed’

“I have admired Benton County and it’s agriculture community for years,” said Armstrong in our recent interview.

As a staple in Ag communities for over 40 years, Max Armstrong  is one of the most well known and respected American agriculture broadcasters in the country. Armstrong and Orion Samuelson are the stars behind ‘This Week in Agribusiness’ with and the Saturday Morning Show on WGN radio in Chicago. In addition, Armstrong also spotlights his passion for antique tractors on his infamous show ‘The Tractor Shed.’

When: Thursday, March 12, 2015 from 6:30 PM – 9:00 PM EST (doors open at 6 PM)

Where: Benton County Country Club, Fowler, Indiana | 604 West 4th Street (click for Map)

Tickets: $20.00 each

Register: Register for the Event Online here > or Call the Foundation at 765-884-8022

Reservations will be accepted, as space permits, until March 2nd.

 

A big shout out and THANK YOU to the Benton Community Foundation for making this event happen!!

We look forward to seeing you there!

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Yield History Updates and Base Acre Reallocation are nearly upon us. February 27, 2015 marks the final day that producers can update this information at the local county Farm Service Agency (FSA).

February 27, UPDATE – Deadline Extended to March 31 , ANOTHER UPDATE, DEADLINE APRIL 7, 2015 is the latest Deadline for Yield History & Base Acre Reallocation

Whether you have decided to go down the path of ARC or PLC, the revamped farm bill safety net payments require decisions to be made in some capacity.

We’ve reported on renowned Ag economist Dr. Chris Hurt and his suggestions on ARC vs. PLC here, and encourage all farmers, producers and landowners to seek the advice of the FSA agency in your county. The ability to update yields hasn’t been possible for over 10 years and this is a great opportunity to do so if they are higher.

REMEMBER, if you do not update your yields by APRIL 7th MARCH 31st Febrary 27, 2015 , your farm’s current yield and base acres will be used.

By March 31st, ff you do no select an ARC or PLC program then here will be no 2014 payments for that farm

ADDITIONALLY, your farm will default to PLC (Price Loss Coverage) program through 2018.