Tag Archives: market
Farmland Prices Hit Records
Thursday, August 22,2013 Farmland prices hit records Market may slow from higher interest rates and fewer exports BY PATRICK YEAGLE Record farmland prices continue in Sangamon County, but agriculture observers say the rise may be slowing down. The rising prices follow a nationwide trend driven by low interest rates and solid demand for crops, says John Hawkins, spokesman for the Illinois Farm Bureau. However, farmland prices may level out as interest rates rise, exports fall and profits on corn and soybeans get slimmer. Hawkins says farmland prices grew steadily for 30 years, but the past five years have seen a faster rise in prices. In central Illinois, farmland routinely goes for $10,000 per acre or more, Hawkins says. The increase likely came from strong demand for corn and soybeans from Europe and China, while ethanol drove commodity prices higher domestically. However, those markets have now slowed, Hawkins says. And the prospect of a larger total harvest means less profit for individual farmers because commodities become cheaper, he said. “We may be getting to point where we’re going to take a pause,” he said. “We’re supposed to have a good harvest this fall. If we have another good harvest next year, that could lessen farm income greatly, and that would probably throw cold water on land prices.” Allen Entwistle has farmed land in the Springfield area for about 50 years. He says he recently saw a tract of land near Edinburg, southeast of Springfield, go for $16,800 per acre. The plots with the best soil and drainage get the highest prices, Entwistle says, while low grade “class c” land goes for far less, often being used for hunting instead of farming. The high prices can be a hurdle for smaller operations or potential new farmers, Entwistle says, noting that it’s not uncommon to put more than a million dollars into a farm. That money often comes from a bank or a wealthy investor, who face big risks along with the farmer if the crop fails. Still, the risk is well worth the reward for many farmers, as the U.S. Department of Agriculture estimates that 2013 will bring $128 billion in total profit for America’s farmers – more than double the $63 billion earned in 2009. During the recession, farmland prices increased while other forms of real estate like commercial and residential tumbled, which Entwistle attributes to the land’s inherent value. “A house depreciates unless you’re constantly spending money on it,” he said. “That ground is always worth whatever you pay for it because land is limited. They’re building new houses every day, but scientists haven’t figured out how to make more land.” Contact Patrick Yeagle at pyeagle@illinoistimes.com . Continue reading
Sustainable Forestry Investment Gaining Popularity
The latest UPM Tilhill Timber Bulletin highlights and provides a unique insight into key factors relating to UK standing coniferous timber sales such as market share, performance of the market with a view to investment and, additionally, the impact of the growth in renewable energy. Very positive news is that UK processors continue to increase their market share which has risen from 41 per cent to 44.6 per cent by volume. This, says the report’s author UPM Tilhill’s Timber Operations Director Peter Whitfield, is a huge achievement. Continue reading
Interpol Warns Of Criminal Focus On $176 Billion Carbon Market
Last updated on 6 August 2013, 9:25 am Crime agency says lack of oversight and transparency threaten the environmental integrity of carbon markets How VAT fraud is committed within the European emissions trading scheme (Pic: Europol) By Ed King Carbon trading schemes are at acute risk from criminal gangs and fraud, a new report from Interpol warns. The police agency says uncertain regulations and a lack of oversight and transparency threaten the environmental and financial integrity of the world’s carbon markets, worth an estimated $176 billion. And it says that there is a risk that if financial instruments related to carbon trading become too complex, the world’s carbon markets could spark a financial crisis on par with 2008. The report says law enforcement agencies must be more aware of ‘carbon crimes’, improve communication between countries and impose tighter regulations on transactions and calculations of emissions reductions. “Unlike traditional commodities, which at some time during the course of their market exchange must be physically delivered to someone, carbon credits do not represent a physical commodity but instead have been described as a legal fiction that is poorly understood by many sellers, buyers and traders,” Interpol says. “This lack of understanding makes carbon trading particularly vulnerable to fraud and other illegal activity.” Areas Interpol says criminals seek to exploit include over-claiming for credits, the sale of credits that do not exist, false claims relating to a project’s benefits, money laundering and online credit theft. And it warns that even third party auditors, employed by schemes like the UN’s Clean Development Mechanism to verify projects, may be susceptible to “bribes or collusion” to manipulate the results. “The discrepancy between the objectives of the financial players in the market – to maximize profit – and the overall objective of the Kyoto Protocol – to ensure overall greenhouse gas emissions are reduced – places diverse pressures on the regulation of the market when drawn alongside other typical commodity markets,” says the report. Lucrative takings High profile criminal cases include a 2010 hacking attack on cement maker Holcim, resulting in the theft of 1.6 million credits worth €23.5million, while in 2011 hackers stole two million carbon credits from registries in Austria, the Czech Republic, Estonia, Greece and Poland. In 2012 three men in the UK were sent to prison after running a £39 million tax fraud related to carbon trading . And earlier this year one of Britain’s most prolific money launderers Ian Macdonald was jailed for eight years for an £18 million carbon credits scam targeting vulnerable UK investors. “It is imperative that the carbon trading markets remain secure from fraud, not just to protect financial investment, but also because the global environment depends upon it,” said Andrew Lauterback, Senior Criminal Enforcement Counsel at the US Environmental Protection Agency. “This criminal activity risks seriously undermining the environmental integrity of the carbon markets globally,” added David Higgins from Interpol’s Environmental Crime Programme. Jamal Gore, Deputy Chair of the International Carbon Reduction and Offset Alliance (ICROA) welcomed Interpol’s drive to raise awareness of criminality in the sector, but told RTCC many of the issues raised in the report had already been resolved. “ICROA’s Code of Practice, the governance mechanisms of the voluntary carbon credit standards and the emergence of professionally managed carbon credit registries together address many if not all of the issues related to the voluntary carbon market that the guide raises,” he said. “The publication of the guide in its current form therefore represents a missed opportunity. By highlighting both the challenges facing the carbon markets and the work already being done to drive best practice, it could have better served its purpose of reducing carbon trading crime. Instead it risks sowing doubt just when we need to redouble our efforts to fight climate change.” Large target New carbon markets are ripe targets for criminal activity, PwC’s Jonathan Grant told RTCC, advising policymakers in China and South Korea to devote more attention to managing fraud risks. He also recommended environment departments charged with implementing new mechanisms ensure they have sufficient experience of regulating financial instruments, citing this as a concern among analysts. Carbon trading is the world’s fastest growing commodities market. In June, China launched the first of seven pilot projects, with an aim of developing a national emissions trading scheme (ETS) by the end of the decade. The UN runs two schemes, the Clean Development Mechanism (CDM) and Joint Implementation (JI), which are targeted at improving low carbon investment in the developing world. The EU ETS is worth an estimated $148 billion, the US-based Regional Greenhouse Gas Initiative (RGGI) $249 million and New Zealand’s market $351 million. – See more at: http://www.rtcc.org/…h.nEmz9ZzS.dpuf Continue reading
