Read today's market report.
The old adage — nothing is certain except death and taxes — rings true for many farmers determining the right time to sell farm assets.
A persistent upper air pattern running from southwest to northeast across the Midwest let to abnormally wet weather across Michigan and the Great Lakes region during the second half of May and early June. The combination of frequent rainfall and cooler-than-normal temperatures led to a continuation of waterlogged soils and prolonged fieldwork delays.
There’s good and bad news in farmland listings and sales. The good? Land values have exhibited an underlying base of strength from several factors including historically low-interest rates, low supply of land for sale and adequate buying capital. The bad? The recent increase in listings is driven in part by the current farm economy and the need for financially challenged producers to liquidate some or a portion of their land assets to cover operating costs and debt service, according to Farmers National Company.
EGLE announced recently there will be about $276,000 in federal funding for projects to develop or update watershed management plans to restore and protect Michigan’s lakes, streams, and wetlands by controlling polluted runoff. Regional and local planning agencies, local governments, nonprofit organizations, and colleges and universities are eligible to apply.
Canada is warming twice as fast as the rest of the world, according to a recent climate change study. And northern Canada is warming three times as fast. What does that mean for the Great Lakes?
The Department of Environment, Great Lakes, and Energy's (EGLE) Water Resources Division has opened a new grant funding opportunity for aquatic invasive plant management in Michigan’s inland lakes.
On May 10, December 2019 corn futures closed at $3.72. They were trading around $4.50 during overnight trading June 4 following the June 3 USDA Crop Progress Report showing only 67% of the corn in the U.S. had been planted as of June 2. Normally, more than 95% of the corn has been planted by this date. Michigan planted only 42% of expectation versus a normal of more than 85%. More rain was forecasted for parts of the Corn Belt during the following week — Michigan included.
For the four-year stretch from 2015 through 2018, average ROA did not exceed 2% and was negative for 2016 and 2018. Some degree of variation is to be expected but the long stretch of dismal returns has eliminated dairy farm liquidity and chewed up a large amount of equity in the industry. In 2018, milk cow numbers and total Michigan state milk production began to decline.
An active storm track running southwest to northeast through the Midwest led to a continuation of abnormally wet weather, waterlogged soils, and prolonged fieldwork delays during early May.
Analyzing the many factors contributing to a farm’s financial health is much like analyzing the many factors contributing to a person’s overall health. A doctor may look at a patient’s temperature, weight, blood pressure, heart rate, blood tests, genetics, history, lifestyle, etc. to determine the individual’s overall health condition and the likelihood they may or may not have health issues in the future. Using just one of these items may be an indicator, but it won’t paint the whole picture.