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OMAHA, Nebraska – Farmland values in areas of the grain belt states served by Farm Credit Services of America (FCSAmerica) softened slightly in the last half of 2018, but remained stable overall. Benchmark farmland values in Iowa, which generally is on the leading edge of changes in the real estate market, declined 1.4 percent in the last six months of 2018. For the year, farmland values were largely unchanged. Nebraska and South Dakota each saw modest declines for the year. Only Wyoming experienced an uptick in benchmark farmland values, although the few number of farm sales in that state make it challenging to analyze its real estate trends.

Tim Koch, chief credit officer for FCSAmerica, says “The softening of the market in the latter half of 2018 wasn’t unexpected and, in fact, it better aligns farmland values to profitability in the grain sector. While producers in many areas of our territory benefited from strong yields in 2018, the industry continues to be challenged by compressed margins. For producers who rent farmland, softening in the market will help their bottom line.”

Compared to the market’s peak, farmland values are down 19.5 percent in Nebraska, 18.1 percent in Iowa and 12.0 percent in South Dakota. Continued pressure on profit margins could lead to additional softening in 2019. However, the same factors that have helped to stabilize the market for the past three years remain in place, including interest rates near historic lows and strong demand for quality land that is in tighter supply.

The chart below reflects changes in farmland values for FCSAmerica’s 64 benchmark farms. The number of benchmark farms in each state is noted in parentheses.

Fourteen of Iowa’s 21 benchmark farms decreased in value in the last six months of 2018, while two increased and five showed no change. In Nebraska, eight farms declined in value, six increased and four showed no change. Twelve benchmark farms in South Dakota showed no change in value, four increased and seven decreased in value. Wyoming’s cropland benchmark farm experienced a 4.2 percent increase in value and its pasture unit improved 2.0 percent.

FCSAmerica appraises its benchmark farms twice a year, in January and July. In addition, the cooperative compiles records from farmland sales in its four states. The cooperative’s objective in using the benchmark farms is to track real estate values without the influence of changes in land quality on sale prices.

JEFFERSON CITY, Mo. (AP) — The U.S. Supreme Court has decided not to preside over legal challenges to laws in California and Massachusetts requiring larger living areas for some farm animals. A total of 15 states led by Missouri and Indiana had asked the court to accept original jurisdiction over the lawsuits.

President Donald Trump’s administration had urged it not to do so. It said the dispute over interstate commerce was best suited for a district court. The lawsuit against California targeted a law barring the sale of eggs from hens that are not raised in cages large enough for them to stretch out.

The other suit challenged a Massachusetts law requiring all eggs sold there to come from cage-free hens by 2022. That law also bars tight cages for pigs and calves.

Larry Hunt, CAM PK-8 Principal, reports the CAM FFA and the CAM Middle School FFA along with the CAM Middle School are doing a joint community service project. The groups are working with a non-profit group called Meals for the Heartland, to package 30,000 meals to be donated to local food banks and other needy food banks, that send meals to areas around the world to help people in need. The chapter applied for a grant of $2,000 from the Farm Credit Services, in Harlan.

The Chapter also received a donation from the Anita Lions club to help pay for the products used in the meals. To meet the monetary needs Farm Credit Services gave an additional $700 to fund the project. On Jan. 10th members of both FFA groups along with 5th, 6th, 7th,and 8th graders will be set up in two groups to package the meals.

Officials with Pioneer seeds report the Atlantic Chapter of the FFA demonstrated a great amount of creativity in the Pioneer^® brand A-Series soybeans Big A Challenge. The chapter’s final masterpiece will be one of 15 featured during 2019 Farm Progress Show in Decatur, Ill.

A judging panel selected the top 15 chapters in the collaboration between Pioneer and FFA that focuses on the next generation of soybean varieties and the next generation of growers. Each chapter will bring a unique perspective to decorating a seven-foot-tall Big A statue, highlighting A-Series soybeans’ cutting-edge science and game-changing yield potential while celebrating local communities.

“We are impressed by the creativity from the next generation,” says John Schartman, Pioneer Soybean Category Lead, Corteva Agriscience™, Agriculture Division of DowDuPont. “The FFA chapters brought their ‘A’ game to the first round of competition. We’re excited to see how they will tie together A-Series soybeans, the Pioneer spirit and their local community in the final designs.”

FFA chapters were selected based on an essay highlighting how A-Series soybeans benefit farmers and a sample design of their Big A statue. Chapters will decorate the Big A statues through May, with the top three winners awarded prize money — $2,500 for first place, $1,500 for second place and $1,000 for third place — at the 2019 Farm Progress Show. The public also will vote for their favorites on the Pioneer Facebook and Twitter pages, with the winning chapter receiving the People’s Choice Award and a special prize for its members.

The Big A Challenge premiered at 2018 Farm Progress Show in Boone, Iowa, with seven Big A statues promoting A-Series soybeans placed around the grounds. Follow #FFAseries on Facebook and Twitter to see the creativity of these FFA chapters.

The Montgomery County Extension and Outreach will be starting off the year with their new Ag Coffee’s.  The Ag Coffee’s will be a free monthly gathering to learn about topics in that affect the Ag world and feature conversation with area producers. January’s Ag Coffee will be on Farm Succession Planning, sponsored by Farm Credit Services of America.  By attending, you’ll learn a bit about the importance of transition planning and minimizing legal difficulties and confusion for your family during farm transition.

Join the Montgomery County Extension for their Ag Coffee, on January 23^rd at 9:30-a.m., at the Montgomery County Extension Office. The coffee will be hot and rolls will be ready!  Reservations are appreciated, but not required. For more information or to pre-register, contact the Montgomery County Extension Office, at 712-623-2592.

(Radio Iowa) — Iowa continues to lose meat lockers in the state’s smaller towns. Brandi Janssen, who runs the Iowa Center for Agricultural Safety and Health, says without these processors, small-scale farmers will lose customers.  “Well, if you don’t have access to a market you don’t have much reason to farm,” Janssen says. “It’s just sort of a necessary chain. And then you need to make calculations about…how far is it economically feasible and humane to transport animals?”

Iowa State University researchers estimate Iowa has about a third as many small meat plants today as in 1965. “They’re critical for a healthy local food system,” Janssen says. “A small producer is not going to be able to access a giant, federally-inspected processing facility for products that he or she is going to sell to their local community.”

A long-time meat locker in eastern Iowa closed its doors at the end of December. The Holy Cross Meat Locker was famous for its smoked sausage, before it shut down after 72 years. Market watchers say Iowa is losing a lot of these small meat processors. The shops, sometimes run by just a handful of family members, generally butcher a limited number of cattle and hogs for retail or farmers’ markets.

(Thanks to Kate Payne, Iowa Public Radio)

(Radio Iowa) — Iowa farmers who are interested in growing hemp won’t be able to get the ball rolling until the partial federal government shutdown ends. President Trump signed the Farm Bill into law last month, which included the Hemp Farming Act. It removed the plant from the Controlled Substances Act and made it legal to grow the plant. Stuart Titus, president and C-E-O of Medical Marijuana Inc., says the legalization of industrial hemp for Iowa farmers holds much promise. “I’m very excited about hemp being a rival for corn, wheat, soybeans,” Titus says. “Certainly a hemp futures market should develop very soon on the Chicago Board of Trade.”

Farmers who want to grow hemp have to first fill out some paperwork for the U-S-D-A and pass an F-B-I background check, both of which are on hold due to the government shutdown. Still, Titus predicts the versatile hemp plant will quickly become a popular crop in Iowa. “We believe a lot of farmers are very interested to help fallow lands or use hemp as a rotational crop as it really seems to add nutrients back to the soil,” Titus says. “Certainly, with the number of industrial uses, a farmer can get two or three or even four potential income streams from one crop.”

Hemp can be used in all sorts of products, from clothing to rope and from paper to building materials. The crop may be a favorable option for many farmers who’ve experienced losses in recent months due to poor commodity prices and trade issues. Titus notes it’s very unfortunate potential hemp growers in Iowa can’t immediately pursue the practice as plans need to be made for the planting season. “With the shutdown of the government, this is not exactly helping matters for the farmers,” Titus says. “Hopefully, this will just be a very quick, little, temporary glitch in the road and we’ll be back to standard practices before too long here.”

When the Iowa legislative session opens next week, lawmakers may consider new regulations on hemp production. Hemp does -not- contain T-H-C, the chemical in marijuana that causes a high, however, hemp can be used to make cannabidiol or C-B-D, which is used to treat several medical conditions. Current Iowa law only allows for C-B-D to be made by state-licensed producers and not through industrial hemp.

MASON CITY, Iowa (AP) — A northern Iowa nature center is getting $386,000 in renovations this year. The Globe Gazette reports that the Lime Creek Nature Center announced plans to replace the center’s original main-level exhibits with “museum-quality,” ”interactive” and “durable” ones that will highlight the area’s natural resources and the unique features and history of the Lime Creek Conservation Area. It’s also designed to provide an engaging educational experience for visitors.

The nature center opened in 1984 and was one of the first in Iowa. It features displays that include mounted animals, reptiles, amphibians, fish and natural resources as well as an auditorium and library. Managers say some of the center’s current displays are outdated and deteriorating.

DES MOINES, Iowa (AP) — The U.S. Department of Agriculture announced Friday that it must delay the release of key crop reports due to the partial government shutdown, leaving investors and farmers without vital information during an already tumultuous time for agricultural markets.
The USDA had planned to release the closely watched reports Jan. 11 but said that even if the shutdown ended immediately , the agency’s staff wouldn’t have time to release the reports as scheduled. Congressional leaders met with President Donald Trump on Friday but there were no indications the shutdown would end soon.

“The longer it goes on, the more distorted our reference points get,” said grain market analyst Todd Hultman, of Omaha, Nebraska-based agriculture market data provider DTN. “It’s a lot of guesswork.”
The reports detail the size of the 2018 harvests of corn, soybean, wheat and other crops and give an early estimate for what farmers will plant in the upcoming season. Depending on the estimates, the price of the commodities can rise or fall as they show the current supply and forecast how many acres will be devoted to different crops in the coming months.

The government shutdown has now forced the delay of such reports for two weeks, and uncertainty about the commodity supply will only grow as more time elapses, Hultman said. USDA reports provide the foundation for understanding the U.S. agricultural industry, and because they also estimate farm production in other countries, they are essential for understanding global crop markets.

Although the government is still releasing some information, such as the Labor Department’s monthly jobs report , the USDA hasn’t released key reports since Dec. 22. This includes the closely watched World Agricultural Supply and Demand Estimates report and information about specific crops, such as winter wheat and canola seedings.

The lack of information comes amid the uncertainty of trade with China, where tariffs led to an abrupt drop in U.S. agricultural exports to the country. There were indications that China was beginning to resume at least limited purchases of U.S. crops, but because of the government shutdown it’s unclear what’s happening.

University of Illinois professor Todd Hubbs, who studies agricultural commodity markets, said he finds the report delays especially frustrating because he thinks they could confirm a belief that the U.S. soybean crop was smaller than earlier forecast. If true, that information would mean a smaller supply and could raise soybean prices, helping farmers who have struggled with low prices worsened by the trade dispute with China. Until the USDA releases its information, investors and farmers can’t be certain about where they stand, he said.