Tag Archives: growth
Romania Posts Slightly Higher Economic Growth In Second Quarter
Romania registered a 0.5 percent economic growth in the second quarter of this year, compared to the previous quarter, while its economic growth at six months was of 1.8 percent. The figures were higher than the previous estimations of 0.3 and 1.7 percent respectively. The growth was fueled by industry, real estate and agriculture and was partially offset by a drop in constructions. Industry, which covers around a third of the country’s GDP, was up 3.9 percent during the first half of 2013. Real estate, which covers only 7.9 percent of the GDP, was also up by 3.2 percent and agriculture, which contributes with 3.5 percent of the GDP, was up 6.1 percent. Constructions were down 3.1 percent. The International Monetary Fund (IMF) recently revised the economic growth forecast for Romania, expecting the GDP to go up to 2 percent in 2013 and 2.25 percent in 2014. The previous forecast of the IMF and the Romanian authorities included a growth of 1.6 percent for this year and 2 percent for 2014. editor@romania-insider.com Continue reading
Growth In Farmland Values Slowing But Still Hot
AUGUST 6, 2013 By: Fran Howard Land values, particularly for cropland in the Corn Belt and Northern Plains, soared again in 2013, but analysts warn that current growth rates are not sustainable given the recent declines in grain and oilseed prices and the strengthening U.S. dollar. According to USDA’s Land Values report , released Aug. 2, U.S. farm real estate value, a measure of the value of all land and buildings on farms, averaged $2,900 per acre in 2013, up 9.4% from 2012 values. Regional changes ranged from a 23.1% increase in the Northern Plains region to flat in the Southeast. Not surprisingly, the highest farm real estate values of $6,400 per acre were in the Corn Belt. The Mountain region had the lowest farm real estate value of $1,020 per acre. “The last few months, the growth rate has been coming down,” says Ernie Goss, MacAllister Chair in Regional Economics at Creighton University, Omaha, Nebraska. “Softer corn and soybean prices, the stronger dollar, and slower economic growth globally are all combining to put a dent in the growth in farmland values.” Still, Goss anticipates that long-term average farmland values will continue to grow at about 7-8% a year. “Rising interest rates could also take a little air out of the land-price bubble,” Goss says. “Growth rates of 23%, 15% are not sustainable.” Yet even if land values were to fall, he says, the country would not see a repeat of the 1980s farm crisis because farmland is nowhere near as highly leveraged today. The average value of U.S. cropland, according to the report, increased $460 per acre, up 13% from 2012 levels to $4,000 per acre. Year-over-year cropland values in the Northern Plains and Corn Belt rose 25 and 16.1% to $2,950 and $6,980 per acre, respectively. In the Southeast, the value of cropland fell 2.8% to $3,410. The highest valued cropland was in New Jersey at $12,800 per acre up 4.1%, followed by California at $10,190, and Colorado at $9,000. Iowa and Illinois values were close behind at $8,600 and $7,900. Farmland values in Iowa have risen by double digits in each year since 2010, when the value of cropland was $5,064, according to the Iowa State University land value survey. “Where does this leave us? Many people have discussed the possibility that land is on a speculative bubble and that land values are going to collapse. Will the land market collapse like it did in the early 1980s or similar to the housing market a few years ago? No one knows for sure. But there are several key variables to watch to formulate an opinion,” says Michael Duffy, extension economist with Iowa State University, on his website. “One of the key variables to watch is income. Theory tells us it would be the net income per acre that is the key, but analysis shows that the total income is a better predictor. In Iowa there is a 95% correlation between land values and the value of agricultural production in the state. There is an 89% correlation between land values and net farm income,” Duffy says. According to USDA’s recent report, value of cropland fell in four states, Florida, South Carolina, New Mexico, and New York, and held steady in seven others. The average value of U.S. pastureland increased to $1,200 per acre, up 4.3% from 2012 levels. Southeast pastureland fell 1.5% below year-earlier levels to $3,380, while pastureland in the Northern Plains soared 18.4% to $81. “The attraction of farm life is increasing, so there is a high motivation to return to the farm, but buying a farm operation is not easy,” Goss says. As today’s landowners die, leaving the farm to their heirs, the heirs are often unable to buyout their siblings or cousins. Thus farms will continue to get larger and larger, he adds. Continue reading
Slower Global Agricultural Production Growth
FAO expects slower global agricultural production growth due to Limited expansion of agricultural land. 27 JUN 2013 WDM Group PR Network PR.com)– A new report published by the FAO revealed that global agricultural production is expected to grow 1.5 percent a year on average over the coming decade, compared with annual growth of 2.1 percent between 2003 and 2012. Limited expansion of agricultural land, rising production costs, growing resource constraints and increasing environmental pressures are the main factors behind the trend. The report added that the FAO believes that prices will remain above historical averages over the medium term for both crop and livestock products due to a combination of slower production growth and stronger demand, including for biofuels. The findings of the FAO report support Agcapita’s belief that fundamentals are in favor of farmland investment. Agcapita believes farmland is a safe investment, that supply is shrinking and that unprecedented demand for “food, feed and fuel” will continue to move crop prices higher over the long-term. Agcapita’s series of farmland funds continue to show great appeal to conservative investors concerned with inflation and the volatility of their existing public equity investments. Farmland has similar inflation hedging qualities to gold but with an ongoing cash yield that gold lacks. Farmland returns exhibit low volatility and this combined with the high absolute returns from farmland equate to a favorable Sharpe ratio. Agcapita’s funds directly hold diversified portfolios of farmland in western Canada, and in particular in the highly price competitive province of Saskatchewan. Investors are provided with the comfort of a direct investment in farmland combined with a model of front-end loaded cash rents. Agcapita Farmland Fund IV has launched in April 2013 with a $20 million offering. Agcapita is the only farmland investment fund eligible for registered plans (RRSP, TFSA, RESP etc). Fund IV is open to investors in BC, Alberta, Saskatchewan, Manitoba, Ontario, Newfoundland and accredited investors in Quebec. If you are interested in finding out more about the Fund IV offering please feel free to email us on enquiries@farmlandinvestmentpartnership.com This news release may contain certain information that is forward looking and, by its nature, such forward-looking information is subject to important risks and uncertainties. The words “anticipate,” “expect,” “may,” “should” “estimate,” “project,” “outlook,” “forecast” or other similar words are used to identify such forward looking information. Those forward-looking statements herein made by Agcapita, if any, reflect Agcapita’s beliefs and assumptions based on information available at the time the statements were made (including, without limitation, that (i) the demand for agricultural commodities will continue to grow at a pace that is unlikely to be matched by growth in agricultural productivity, and (ii) investment demand for tangible assets such as agricultural commodities and farmland will continue to increase for the foreseeable future). Actual results or events may differ from those anticipated or predicted in these forward-looking statements, and the differences may be material. Factors which could cause actual results or events to differ materially from current expectations include, among other things: risks associated with the ownership and operation of farmland, including fluctuations in interest rates, rental rates and vacancy rates; general economic conditions; local real estate markets; supply and demand for farmland; competition for available farmland; weather; crop diseases; the price of grain and other agricultural commodities; changes in legislation and the regulatory environment; and international trade and global political conditions. Readers are cautioned not to place undue reliance on any forward-looking information contained in this news release (if any), which is given as of the date it is expressed herein. Agcapita’s undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise. Contact Information: Agcapita Partners Karim Kadry +1-587-887-1541 Contact via Email www.agcapita.com Read the full story here: http://www.pr.com/press-release/496931 Press Release Distributed by PR.com Continue reading
