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Biotech crops see
10th year in U.S.
America's farmers will mark a major milestone during the
2005 planting season. This year marks the 10-year anniversary of biotech
crops becoming commercially available to U.S. farmers.
The latest figures from the
Council for Biotechnology Information suggest that nearly three-quarters of
all soybean and cotton grown in the United States are biotech crops.
More than a third of all corn is biotech, as well.
Source: AFBF; Executive Newswatch; April 2005
Archer Daniels to close
Brazilian soybean plant
Archer Daniels Midland Company has reported that it will discontinue operations indefinitely at its soybean crushing and refining operation in Tres Passos, Rio Grande do Sul, Brazil, effective immediately.
The foodstuff producer said that the decision was taken due to what it described as poor crushing margins at the South American plant.
Source: AFBF; Policy-Links;
April 14, 2005
Downer cattle ban
may be eased
Agriculture Secretary Mike Johanns suggested that the ban on downer cattle may be eased after the USDA completes an enhanced surveillance program of U.S. cattle later this year.
There is a compelling argument: "If you've got an animal that's clearly under 30 months that broke a leg in transit, there is no threat of BSE whatsoever," Johanns told reporters after addressing the National Cattle-men's Beef Association.
Source: AFBF; Policy-Links;
April 18, 2005
1031 tax deferred exchange ups values
Toss a 1031 Tax Deferred Exchange buyer into a farmland deal and you tack another $854 per acre, average, onto the price tag. At least that's the case in Illinois, according to a recent survey of state land values and cash rents conducted by the Illinois Society of Professional Farm Managers and Rural Appraisers (ISPFMRA).
The survey showed the pervasiveness of 1031s in the Illinois land market. Survey respondents indicated that 48 percent of the buyers used tax-deferred funds to buy farmland in 2004. Of those 1031 users, 52 percent were from the Chicago area, while 25 percent were from the local area.
Because 1031 buyers have available cash and usually need to make a purchase within a set time limit, it's believed they put pressure on local buyers and push up the price being paid for farmland. Survey respondents estimated the premium resulting from 1031 involvement levered prices up by an average of $854 an acre over deals not involving a 1031 buyer.
Source: LandOwner; Vol. 26,
Iss. 7; April 7, 2005
Japan, Australia consider
free trade agreement
Australia and Japan have agreed to look at the possibility of a free trade agreement in the future. Australian Prime Minister John Howard brought up the idea in a meeting with Japanese officials in Tokyo.
Japanese Prime Minister Junichiro Koizumi and Howard agreed to begin a feasibility study. Koizumi says the study could take two years, at which point a decision whether to begin free-trade talks would be made.
Australia is currently the supplier for about half of Japan's beef imports.
Source: AFBF; Executive
Newswatch; April 2005
Wind energy
growth great
The wind energy sector is experiencing explosive growth, according to the American Farm Bureau. Wind power capacity in the United States has quadrupled since 1990 and currently provides enough energy to support the electrical needs of nearly 2 million households.
A typical leasing agreement for wind turbine placement provides $2,000 per year for a 750-kilowatt wind turbine. A 250-acre farm could increase annual income up to $14,000 per year based on the average placement of turbines.
Source: AFBF; Farm Bureau News;
April 18, 2005
