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Farmland Price Growth Flattens Across Mid-South And Southeast In Second Quarter; Outlook Is Stable
The pace of farmland price appreciation across the Mid-South and Southeast U.S. continued to flatten in the second quarter, according to the latest Farmland Market Survey released today by Farmland Investor Letter. Madison, WI, September 06, 2013 –( PR.com )– The pace of farmland price appreciation across the Mid-South and Southeast U.S. continued to flatten in the second quarter, according to the latest Farmland Market Survey released today by Farmland Investor Letter. Non-irrigated cropland values rose at an estimated 6.3% year-over-year pace, down from 7% in the first quarter. Irrigated tracts increased at an 8.2% annual pace, unchanged from the previous quarter. Pasture values were up 2.4% from a year ago, also virtually even from the 2.5% 12-month rate through the first quarter. The survey, conducted from June 15, 2013 through August 14, 2013 was based on 102 responses from appraisers, property managers, lenders, real estate brokers and landowners located in Alabama, Arkansas, Florida, Georgia, Louisiana, Mississippi, Missouri and Tennessee. Farmers and investors expect cropland values to remain stable through the third quarter, despite declining crop commodity prices. Low interest rates continue to support land values. However, with the Federal Reserve expected to begin tapering 10-year Treasury note purchases in coming months, mortgage rates are already starting to notch up. A sustained increase in interest rates would put pressure on further land price appreciation. In addition, strong returns from the stock market—the S&P 500 Index has generated an 18.3% total return year to date—continue to compete for the attention of investors. Farmland Values Survey participants estimated that non-irrigated cropland across the region was worth an average $3,141 per acre in the second quarter of 2013. Irrigated cropland values averaged $4,477 per acre. Pasture values averaged $2,239 per acre. On an individual state basis, non-irrigated cropland values ranged from a high of $4,925 per acre in Missouri to a low of $2,479 per acre in Georgia. Irrigated cropland values ranged from a high of $6,833 per acre in Missouri to $3,556 per acre in Alabama. Pasture values ranged from a high of $2,900 per acre in Florida to $1,771 per acre in Arkansas. Cash Rents Cash rent increases for cropland and pasture continue to lag land price inflation across the region. Rents on non-irrigated cropland averaged $114 per acre, ranging from an average $69 per acre in Georgia to $213 per acre in Missouri. Irrigated cash rents averaged $199 per acre across the region, and ranged from an average $135 per acre in Alabama to $328 per acre in Florida. Pasture rents averaged $36 per acre, ranging from $24 per acre in Florida to $78 per acre in Tennessee. Rent income yields, which are calculated by dividing gross cash rent by land value, offers insights into the relative pricing of land tracts regionally. Across the Mid-South/Southeast, non-irrigated tracts are estimated to be generating a 3.6% rent income yield; irrigated tracts 4.4% and pasture 1.6%. Market Outlook With farm crop prices continuing to contract, survey panelists remain cautious in their outlook for both cropland and pasture values, forecasting that prices would remain stable though the third quarter. Respondents are most optimistic for irrigated cropland tracts, where 35% expect prices to increase, while 64% look for no change. Buyer demand for irrigated tracts appears strongest in Missouri and Louisiana where 67% and 60%, respectively, of respondents look for irrigated land values to continue rising. Interest in non-irrigated tracts appears strongest in Missouri, where 80% of respondents forecast higher prices. Contact Information Mercator Research LLC Michael Fritz 312-725-0559 Contact www.farmlandinvestorcenter.com Continue reading
Africa’s Farmers Seek Private Money
By Busani Bafana [ Sweetpotato farmer Jose Ricardo in Maputo Mozambique. Africa currently imports almost 40 billion dollars worth of food, and experts say that the continent needs to become more self-reliant. Credit: Busani Bafana/IPS Africa currently imports almost 40 billion dollars worth of food a year, but it should implement measures to attract private sector investment in agriculture in order to reduce its food import bill and increase its self-reliance, experts in the sector tell IPS. “In the next 10 years, African countries should not rely on food aid, but should produce their own food and buy from within Africa when they run out of food,” agriculture researcher and director of the Barefoot Education for Africa Trust, Professor Mandivamba Rukuni, told IPS. “The biggest trick is the private sector putting more money into agriculture. There is nowhere in the world today where you can get the government or industry moving if government and the private sector are not working together.” — agriculture researcher, Professor Mandivamba Rukuni “Food self-reliance means wealth creation and farmers should be directly linked to markets. More people will have more money in their pockets if more smallholder farmers are farming profitably, and this can be done,” Rukuni said. African countries, according to an Alliance for a Green Revolution in Africa (AGRA) African Agriculture Stats Report launched in Maputo, Mozambique’s capital, on Sep. 4, produced 157 million tonnes of cereals and imported 66 million tonnes in 2010. In August, the Forum for Africa Research in Africa put the continent’s current food import bill at more than 40 billion dollars, money it said would be better spent enabling African farmers to become self-sufficient. African heads of state and government committed themselves to improving agricultural and rural development in Africa in the Maputo Declaration of 2003. It includes the ambitious goal of governments allocating at least 10 percent of national budgets to agriculture and rural development. But in the last 10 years, only a few of the 54 African Union (AU) member states have made this investment. These include Burkina Faso, Ghana, Guinea, Mali, Niger and Senegal. A further 27 have developed formal national agriculture and food security investment plans under compacts. Compacts are a result of country roundtables that bring together key players in agriculture to agree on investment priorities. Currently one of the few countries prioritising investment in agriculture is Nigeria. In that West African nation, the government developed the Nigeria Incentive-based Risk Sharing System for Agricultural Lending (NIRSAL), which seeks to reduce the risk in the agricultural finance value chain by building long-term capacity and institutionalising incentives for agricultural lending. The goal of NIRSAL is to expand bank lending in the agricultural value chain. Nigeria’s minister of agriculture and rural development Akinwumi Adesina told IPS that Nigeria was leveraging 3.5 billion dollars for agriculture from local banks. The government is shouldering the risk in a bid to attract the participation of the private sector. “We are developing an approach for the private sector to have access to finance because without finance you cannot do much,” Adesina told IPS. “We are working on new financing instruments that will allow our capital markets to work for agriculture. Agriculture accounts for 44 percent of our GDP and 70 percent of all employment but it has only two percent of all bank lending in Nigeria.” Meanwhile, Rukuni told IPS that while most African countries have not been able to commit 10 percent, they have seen the wisdom of doing so. “Although 10 percent is a nice figure to talk about, it is not a magic figure. What is more important moving forward is catalytic public financing, where government, its experts, farmers and private sector work together and really understand here it is important for government to invest to trigger private sector investment,” Rukuni said. Citing China, India and Brazil as examples of public-private partnerships at work, Rukuni said it was time for Africans to understand that there is no competiveness in agriculture without governments and the private sector setting joint targets in infrastructural development, for instance. “The biggest trick is the private sector putting more money into agriculture,” he said. “There is nowhere in the world today where you can get the government or industry moving if government and the private sector are not working together.” The AGRA report notes that despite having over 70 percent of prime uncultivated land, land holdings in Africa continue to shrink. This shrinkage has impacted on the productivity of the 33 million smallholder farmers responsible for up to 90 percent of the continent’s agricultural output. The alliance estimates that a one percent growth in agriculture will increase the income of the poor by more than 2.5 percent, yet only 0.25 percent of bank lending in the Common Market for the Eastern and Southern Africa region goes to smallholder farmers. AU Commissioner responsible for agriculture and rural development, Rhoda Peace Tumusiime, told IPS that investment in African agriculture has become more urgent than before and this was reflected in the political movement towards the development of national agriculture plans as proposed under the Comprehensive Africa Agriculture Development Programme (CAADP) framework of eliminating hunger and reducing poverty. “The 70 percent of the population who depend on agriculture is a big figure, so if we focus on improving the situation of this 70 percent, poverty will be eradicated. We do not want a situation where the economies are growing but agriculture is not,” she said. In a March 2013 report, “Growing Africa: Unlocking the Potential of Agribusiness”, the World Bank projected African agriculture would top a trillion dollars in 2030 on the back of increased domestic and international demand for food. The bank also urged African governments to improve their agriculture policies and promote agribusiness as a driver of growth. Abraham Sarfo, agriculture, technical and vocational education advisor at the New Partnership for Africa’s Development, told IPS that agriculture used to be part of dual development planning but was now on the continental agenda through the Africa-driven CAADP agenda of eliminating hunger and reducing poverty through agriculture. “A sector that contributes over 30 percent of the economy of a country and is still at subsistence level shows how it is underdeveloped compared to mining or ICT that attract the private sector,” Sarfo told IPS. He called for the increase of innovative financing models that will remove risk in agriculture investment to attract the private sector. Phillip Kiriro, president of the East Africa Farmers Federation, which represents about 200 farmer bodies told IPS that access to critical inputs and better technologies has slightly improved in the last 10 years but governments still need to help farmers live off their land. Continue reading
Economic Feasibility of Sustainable Non-Food Biodiesel: Castor
Economic Feasibility of Sustainable Non-Food Biodiesel: Castor Economic Feasibility of Sustainable Non-Food Feedstock Based Biodiesel Production: Castor Bean Biodiesel Business Academy Global Knowledge Platform for a Sustainable Future CENTER FOR JATROPHA PROMOTION & BIODIESEL Building a sustainable biodiesel industry TELE: +91 141 2335839 FAX: + 91 141 2335968 CELL: +91 9413343550 E-Mail jatrophacurcas@gmail.com URL http://www.jatrophabiodiesel.org In a previous articles titled Economic Feasibility of Sustainable Non-Food Feedstock Based Biodiesel Production: Part 1 Part 2 and Part 3, we covered how Pongamia Pinnata, Moringa and Simarouba glauca are going to be sustainable low cost feed stock to build a profitable biodiesel industry. In this article we are going to discuss the potentiality of Castor Bean: cut carbon and fuel the future Biofuels are becoming big policy and big business as countries around the world look to decrease petroleum dependence, reduce greenhouse gas (GHG) emissions in the transportation sector, and support agricultural interests. After more than a decade of healthy growth for conventional biofuels like ethanol and biodiesel, the next wave of advanced biofuels is currently on the cusp of commercial scale-up. Biofuels have already helped the world achieve a tangible reduction in emissions as global CO2 emissions are forecast to rise by as much as 50 per cent over the next 25 years. Nevertheless, the world has come a long way, especially since the original Kyoto Protocol . Numerous countries have adopted mandated bio-content requirements for traffic fuels, for example. Considerable technological progress has also been made, in terms of new refining processes, new types of feedstock, and completely new energy sources. While some of these developments will be important for society two or three decades from now, the ones that call for the most attention are those that can help us start making a difference today. Making more of a difference today Biofuels offer the most direct route available today for reducing traffic-related emissions of CO2 and are already widely available. The future success of the biofuels industry will depend on a number of factors and learning experiences. No easy challenge, it must be admitted, but a necessary one all the same. The number one priority is that the raw materials required to produce biofuels are likely to remain more expensive than crude oil for the foreseeable future. Without this, industry will be unable – and ultimately unwilling – to make the type of investments needed, not only in capacity based on the best existing technology but also in new conversion technologies that can make use of a broad range of globally available feedstock..The degree to which the promotion of biofuels enters into competition with food production, raising questions of food security, depends on a variety of factors: Choice of feedstock; Natural resources involved (especially land and water); Relative efficiencies (yields, costs, GHG emissions) of different feedstocks; Processing technologies adopted. Concern over competition between biofuels and food production has been particularly acute given the overwhelming use of food and feed crops for both ethanol and biodiesel. Several measures are suggested for mitigating this problem. Among them, recommending a low cost input technology for cultivating hardy perennial crops that can grow well even with erratic and low rainfall, still giving assured returns is of great significance. In this context, cultivation of Castor Bean that can grow well under a wide range of hostile ecological conditions, offers a great hope. Castor bean, an annual oil crop, produces a seed that contains approximately 50 percent oil. The oil is of a high quality and there is a growing market for it among biodiesel manufacturers. The oil also has wide ranging applications in the industrial bio-chemical sector. As part of our quest to develop and market sustainable biofuels that have a minimal impact on food supplies and can help us make tangible reductions in greenhouse gas emissions, we’re investing in a number of promising research projects. Research and development programme at Center for Jatropha Promotion & Biodiesel (CJP) focuses on the 17 primary non-food sources of biodiesels —out of which seven namely Jatropha, Jojoba, Castor, Pongamia, Moringa, Castor Bean and Microalgae have been tried, tested that adequate amount of each type of feedstock that could be sustainably produced and utilized across the globe without compromising the fertility of agricultural soils, displacing land needed to grow our food, or threatening the health of our farms and forests. Future biodiesel production should be sourced from crop feedstock’s such as moringa, pongamia and castor that can be grown on marginal land. This will ensure establishment of a sustainable biodiesel industry that will not compete for land and other resources with the rest of the agricultural sector that produces food and fibre. In addition, sustainable biodiesel production will rely significantly on the capacity to run economically viable and profitable operations that will be resilient to fluctuations in fossil and non-fossil fuel prices, and government policies in relation to renewable energy and carbon emission reductions.Biofuel policies have been successful in developing an economic sector and a market. There are now more than 60 countries that have developed biofuel policies. Given the increasing price of fossil fuels and more efficient production, biofuels, or at least some of them, will be competitive even without public support. Increasingly it will be the market rather than policies that will drive the development of the sector. About the Plant Castor (Ricinus communis L.) is cultivated around the world because of the commercial importance of its oil. India is the world’s largest producer of castor seed and meets most of the global demand for castor oil. India produces around 1 million tonnes of castor seed annually, and accounting for more than 60% of the entire global production. Because of its unlimited industrial applications, castor oil enjoys tremendous demand world‐wide. The current consumption of Castor Oil and its derivatives in the domestic market is estimated at about 300,000 tonnes. India is also the biggest exporter of castor oil and its derivatives at 87% share of the international trade in this commodity. Castor is an important non‐edible oilseed crop and is grown especially in arid and semi arid region. It is originated in the tropical belt of both India and Africa. It is cultivated in different countries on commercial scale, of which India, China and Brazil is major castor growing countries accounting for 90 per cent of the worldʹs production. Historically, Brazil, China and India have been the key producing countries meeting global requirements. However, in early 90’s, Brazilian farmers moved away to more lucrative cash crops, and surge in domestic demand in China made them net importers, leaving India to meet the global demand. Cultivation Pattern Castor crop needs a tropical type of climate to develop. That’s why the castor is largely found in the countries lying in the tropical belt of the world. BENEFITS Castor Oil’s application range is very wide ‐ the uses range from cosmetics, paints, synthetic resins & varnishes, to the areas of national security involving engineering plastics, jet engine lubricants and polymers for electronics and telecommunications. Castor is a versatile, renewable resource having vast and varied applications such as lubricating grease, surfactants, surface coatings, telecom, engineering plastics, pharma, rubber chemicals, nylons, etc. Castor oil and its derivatives find major application in soaps, lubricants, grease, hydraulic brake fluids and polymers and perfumery products. The primary use of castor oil is as a basic ingredient in the production of nylon 11, jet engine lubricants, nylon 6‐10, heavy duty automotive greases, coatings and inks, surfactants, polyurethanes, soaps, polishes, flypapers, lubricants, and many other chemical derivatives and medicinal, pharmaceutical and cosmetic derivatives. The seeds and residual cake are highly poisonous and unless processed to remove the poisons cannot be fed to livestock. In some countries the cake is used as a fertilizer. Poisons contained in the cake include ricin. Castor is a plant that is commercially very important to the world. Castor seed oil cake is very useful manure to crops. Castor Cake is an excellent fertilizer because of high content of N (6.4%), Phosphoric Acid (2.55%) and Potash (1%) and moisture retention.which is suitable for cultivation of Paddy, Wheat, Maize and Sugarcane. Castor Oil Castor oil is obtained by pressing the seeds, followed by solvent extraction of the pressed cake. Castor Oil is one of the world’s most useful and economically important natural plant oils. India supplies 70% of the world’s requirements of castor oil. This oil is unique among vegetable oils and uniqueness is derives from the presence of a hydroxyl fatty acid known as ricinoleic acid (12‐ hydroxyl‐cis‐9‐octadecenoic acid) which constitute around 90% of the total fatty acids of the oil. Castor Oil is also distinguished from other vegetable oils by its high specific gravity, thickness and hydroxyl value.Castor oil is used either in its crude form, or in the refined hydrogenated form. Typically, 65% of it is processed. About 28% is refined, 12% is hydrogenated, 20% is dehydrated, and the balance 5% is processed to manufacture other derivatives. The major derivatives of Castor oil used in the industry– hydrogenated castor oil (HCO), Dehydrated castor oil (DCO), Sebacic acid etc. Carbon Credit The castor Plants act as sinks for carbon dioxide as Castor bean plants capture around 10 tons of carbon dioxide for every hectare (2.471 acres) planted and, hence, the Ricinus communis plantation will reduce the amount of this greenhouse gas (GHG) in the atmosphere. Given the widespread presence and ease of cultivation of the Castor Bean oil plant it could be cultivated in conjunction with subsistence agriculture programs as a potential oilseed feedstock for biodiesel. Food v Fuel & Castor Bean As per a recent report of World Bank, the rising crude oil prices are the biggest contributor to rising food prices. In the production and distribution of food, oil is used in everything from fertilizer production to powering farm equipment and transporting the food to consumers. In such context the World Bank report suggests that to stem rising food prices, the widespread famine inflicted on the world’s poorest countries, and the economic hardship exacted on the poor and working-class within the developed world, we must control oil prices. Further, the study carried out at CJP reveals that Castor Bean seed oil has good nutritional profile and other physico-chemical properties which got improved after the process of refining; therefore it can be used as a potential oil seed resource for edible purpose and bio-fuel production. Castor Bean as a source of biodiesel The Ricinus communis biodiesel meets all the three criteria any environmentally sustainable fuel must meet. These are social, technical and commercial. The seeds from the Ricinus communis Plant contain in excess of 45% oil. Castor seed oil is being used widely for various purposes. It is used as a lubricant in high-speed engines and aero planes, in the manufacture of soaps, transparent paper, printing-inks, varnishes, linoleum and plasticizers. It is also used for medicinal and lighting purposes. The cake is used as manure and plant stalks as fuel or as thatching material or for preparing paper-pulp. In the silk-producing areas, leaves are fed to the silkworms. Now the main use of the oil will be as bio fuel and for the production of biodiesel. This oil has an ash content of about 0.02% and the percentage of sulfur is less than 0.04%.The higher the cetane number (CN), the better the fuel will be when used as a diesel. The CN of the majority of biodiesel fuels is actually higher than petrol or diesel, and the cetane number of castor oil biodiesel is in a good range for diesel engines. The castor biodiesel has very interesting properties (very low cloud and pour points) that show that this fuel is very suitable for using in extreme winter temperatures. The project has many other positive economic, social and environmental impacts: There are income generation opportunities that result from the project like the provision of goods and services to the cultivation and its workers Yield Estimates: Castor Bean Yield is a function of light, water, nutrients and the age of the Plant. Good planning, quality planting material, standardized agronomy practices and good crop management may handsomely increase the yields. Ricinus communis will yield at Maturity as high as +1000 kl oil with proper nutrition, and irrigation. This is truly an exceptional amount of oil from an agricultural crop. ILUC discussion and Castor Bean The ILUC effect has become a controversial issue in international debates but also in some national debates. Many studies have shown there is enough land available to produce more food, more feed and more biofuels. According to FAO using the GAEZ classification of land types, there is a gross balance of 3.2 billion ha of prime and good land not used for growing crops, leaving a net balance of 1.4 billion ha, after subtracting built-up areas, forests and protected areas. Though the discussion of indirect land use change (ILUC) caused by biofuels is not scientifically supported, the Castor Bean does not cause land use change. It is an annual crop and grown in arid and semi arid regions. Biodiesel can make a large contribution to the world’s future energy requirements; this is a resource we cannot ignore. The challenge is to harness it on an environmentally and economically sustainable manner and without compromising food security. Economics: Cost & benefit ratio Castor farming is being developed by CJP in conjunction with Pongamia Pinnata and Indian mustard, and has shown to be a heartier and higher yielding variety as companion crop. Being a companion crop, castor bean can give the grower the ability to double crop and earn more — it’s like adding a second shift to the factory of agriculture. The double oil crop adds to the farmer’s income, creates jobs in the crushing operations, and the oil derived from the seed will help decrease foreign oil dependency. It’s a very attractive proposition for all stakeholders involved. Vast scope exists for exploitation of castor as a bioenergy crop although there are still some technological challenges to overcome. A combination of conventional breeding methods with biotechnological techniques provides newer routes for designing oils for biofuel purpose.Non-food castor will produce enough oil in the double-crop environment with Pongamia, simarouba or Indian mustard. The Castor Bean Biodiesel can be produced less than US$ 39 per barrel, detailed economics are here . Estimates of yields, prices and cost vary greatly, making it difficult for potential growers to make informed investment decisions about growing the crop. We identify the key elements in growing castor and examine their effects. We also provide accurate information about the crop for potential castor investors and growers after performing feasibility studies. BBA’S Next 6th 5 day Global Jatropha Hi-tech Integrated Nonfood Biodiesel Farming & Technology Training Programme in India from September 23-27, 2013 is all set to introduce you to the real world of nonfood biodiesel crops and business. Attendees shall also have the opportunity to explore castor crop science, agronomy and its cultivation technology etc. as these have also been included in the course. To find out more about JATROPHAWORLD 2013 please visit w ww.jatrophabiodiesel.org . As seats are limited in 6th Global Jatropha World 2013, register now. One can contact Coordinator Programme on M +91 9829423333 or mail to sign up for the event early and secure your place without delay. The next issue Part 5 shall be focused on “ Jojoba: Diesel from Desert Shrub” Director (Training) Biodiesel Business Academy T +91 141 2335839 F: +91 141 2335968 M- +91 982943333, www.jatrophabiodiesel.org Continue reading
