Tag Archives: times
Farmland Values Notch Another Dramatic Rise
John Luke, The Times The Wietbrock family works to harvest corn last fall on their land near Lowell. Statewide farmland values have risen by as much as 19.1 percent over the last year, according to a recent Purdue University study. September 12, 2013 4:00 am • Joseph S. Pete joseph.pete@nwi.com, (219) 933-3316 Farmland values and cash rents have risen again this year, and Northwest Indiana has some of the highest prices in the state, according to a Purdue University study. Corn and soybean prices have recently started to wilt but had reached record highs after last year’s drought, causing farm incomes to shoot up. Higher prices drove up profits, and farmers also got insurance reimbursements for lost crops. The better-than-expected farm incomes, low interest rates and strong demand have helped push agricultural land values up by as much as 19.1 percent this year, compared to last year, the Purdue study found. Cash rents rose by 9.4 to 10.9 percent over the same period. “While the 2012 Indiana crop suffered from the worst drought since 1988, the increase in farmland values did not bother to slow down,” said Craig Dobbins, a Purdue Extension agricultural economist. The average price of an acre of top-quality farmland in Northern Indiana rose by 17.3 percent to $9,336 an acre in June, compared to $7,958 last June. Average and poor quality farmland increased by about 14 percent over the same period. The recent dip in corn and soybean prices may slow or stop the growth in land prices, and even cause slight declines in some areas. But the cost of farmland has been booming in recent years. Five years ago, a good tillable acre of Northwest Indiana farmland would have fetched around $5,000, said Gene Eldridge, a Porter County Realtor, who represents various types of real estate, including farmland. Today, the price has risen to an average of more than $9,300 per acre in the Northern part of the state, according to Purdue. “Crop prices are up, and the margins are there,” Eldridge said. “That drives up the price of the land, and what farmers are paying in cash rent.” Prices, however, may have peaked for now, unless corn prices hit a new plateau, said Craig Blume, regional vice president of Farm Credit Mid-America. Strong demand, bad weather and farmers who were willing to pay a premium for adjoining parcels drove up prices for the last few years. But lending caps have started to reach their upper limits, to the point where farmers would have to rely on income from land they already own free and clear to pay off purchases of more farmland, Blume said. “It’s stabilized,” he said. “It’s reached where it’s going to go for now.” Commercial development, which had been largely dormant during the downturn, accounted for part of the demand for land. “The transitional land market – that is, farmland moving out of agriculture – seems to have sprung back to life,” Dobins said. “This is a specialized market, with transitional land value strongly influenced by the planned use and location.” Cash rents grew to $310 an acre from $277 an acre last year for top-quality farmland in Northern Indiana, which is a gain of 11.9 percent. Rent prices grew more modestly for average and lower quality farmland, increasing by 7.1 to 8.1 percent over the last year. Researchers came up with the estimates after surveying more than 260 land appraisers, agricultural loan officers, farm managers, farmers and Farm Service Agency personnel. Continue reading
Avacade Reviews Common Methods for Green Investment
Green investments are on the rise, according to a recent article from the International Business Times; Avacade reviews some of the most important green investment trends. ” ” PHILADELPHIA, PA, June 28, 2013 /24-7PressRelease/ — According to a recent article from The International Business Times, green investments are increasingly gaining traction among investors–and in a new statement to the press, Avacade reviews these trends. The article notes that many investors are increasingly eager to invest in new and efficient energy technologies, but also that there remain many uncertainties, especially because these technologies are largely untested. According to the article, though–as well as to Avacade–there are many different ways in which investors can “go green.” Certainly, Avacade would know; the company helps investors to obtain opportunities in forestry, specifically offering investments in different types of valuable timber from all across the world. “Green investments can often appear more green than they actually are,” warns Avacade, in its new press statement. “Investments such as Palm Oil, while potentially being a renewable energy source, are not so green if prime areas of rainforest are felled to make way for it, as can often be the case in places such as Brazil.” As Avacade reviews these green investment trends, it notes that the overall trajectory of green investment is a positive one–but that discernment is nevertheless necessary. “Investors globally are focusing on the green credentials of their investments and this is a positive trend,” the company opines. “However, it is often in the detail of the investments whether these are environmentally positive. All of Avacade’s investments have been reviewed thoroughly to ensure that they are truly ‘green’ investments.” The company offers a specific example from its own portfolio. “For example, the Melina investment is usually planted on old agricultural land and all native species are protected, offering a real contribution to offsetting carbon dioxide. On conclusion of the investment the land is handed over to a forestry easement trust so that the environment and local community can continue to benefit from the development of the plantation.” As for the International Business Times article, it recommends that investors not only analyze the “green” value of an investment, but also the business sense that it offers. “Before investing in renewable energy, you need to have due diligence in evaluating each of the companies,” the article advises. “To start off, you need to investigate the green company from business perspective. A good investor puts his money in good business opportunities.” Another tip offered is for investors not to become seduced by the numbers and statistics that green energy companies tend to use in their efforts to dazzle potential venture capitalists. The important thing, the article says, is for the investor to have a sense of how the products in question will be sold commercially. Still another tip is to learn something about the management team. “A company’s management team will determine its success or failure,” comments The International Business Times. “Technologies based on the coolness factor and current trends are not exactly instant guarantees to success.” As a leading name in green investment opportunities, Avacade reviews a variety of green initiatives from across the globe. about: As a leading name in responsible and socially-ethical investments, Avacade reviews green investment opportunities from across the world, and makes them available to investors in the UK and abroad. The company specializes in forestry investments, including both teak and Melina. — Press release service and press release distribution provided by http://www.24-7pressrelease.com Read more: http://www.digitaljo…5#ixzz2Xt9OeTIr Continue reading
Cap and Trade Collapses
EVIEW & OUTLOOK EUROPE April 17, 2013 Cap and Trade Collapses Even the European Parliament rejects carbon price-fixing. One of the great policy bubbles of our times has been cap and trade for carbon emissions, and on Tuesday it may have popped for good. The European Parliament refused to save the EU’s failing program, which is the true-believer equivalent of the pope renouncing celibacy. The Parliament in Strasbourg voted 334-315 (with 63 abstentions) against propping up the price of carbon credits in the EU Emissions Trading System. The failed proposal would have delayed the scheduled sale of 900 million ETS permits over the next seven years, thereby suppressing supply. After carbon traders realized they weren’t getting more artificial scarcity, they drove the price of emissions permits down by 40% at one point on Tuesday. EU carbon permit prices have collapsed as the Continent’s economic crisis curbs energy demand. Utilities and industrial firms have less need to emit CO2 above their statutory limits. Total emissions in the EU fell by nearly 10% between 2007-2011, according the most recent data. The low price of carbon allowances is good for consumers who don’t have to absorb the extra regulatory cost in what they pay for energy. Anticarbon crusaders never give up, however, so they wanted the Parliament to intervene to prop up permit prices. They want higher-than-market prices for fossil fuels because they know that is only way they can force the production of renewable energy that is otherwise uncompetitive. The Parliament majority rightly judged that raising energy prices for companies and households is ludicrous when Europe is barely growing as it is. This failed political intervention also gives the lie to the claim that cap and trade is a “market solution” to climate change. Proponents only like the market in permits when it keeps carbon emissions prices high. Cap and trade is an attempt to use brute political force to limit the supply of carbon energy. All of which vindicates the Bush Administration and others who opposed cap and trade in the Kyoto Protocol. Aided by Al Gore, Europe tried to turn cap and trade into a global policy. The hot air started to go out of Kyoto after its early backers refused to implement job-killing legislation to meet emissions targets. It lost further support when it became clear that financial firms were gaming the system. With the U.S. shale fracking revolution, it’s now clear that the fastest way to reduce greenhouse gases is to let private drillers expand natural gas production. When even Europe recognizes the folly of artificially raising energy prices, the anticarbon obsessives have lost in their own climate-change temple. Continue reading
