February 4, 2013

Record high commodity prices have fueled the real estate market to historic levels, with Nebraska seeing the highest increase of any state. USDA reports that between the middle of 2011 and the middle of 2012, Nebraska farmland recorded a 33% increase.

In the past five years, land prices have practically doubled in Nebraska, says Bruce Johnson, UNL professor of agricultural economics, on Market Journal. Johnson talks about factors affecting ag land prices and why this trend isn’t likely to mirror the 1980s bust.

Prices are definitely in a bubble, he said, and landowners should expect to see a 30% downward correction in the next few years.  For more information, see Johnson's recent column in Cornhusker Economics —  Land Booms, Bubbles and Busts: Some Beginning Year 2013 Reflections.

Also on this week’s Market Journal with program host Jeff Wilkerson:

• Grain Markets – Jeff Peterson, Heartland Farm Partners president, examines the upside and downside risk of the soybean market. Peterson recommends a range for locking in protection on old crop soybeans and a pricing range for 2013 corn.
   
• Port of New Orleans – Janine Moreau Mansour, commercial manager, Port of New Orleans, explains how the Port of New Orleans supplies overseas buyers with U.S. goods.
   
• Drought Effects on Cattle Hydration – Drought conditions last summer may have dried ponds and creeks, forcing cattle producers to haul water to their animals. UNL Extension Forage Specialist Bruce Anderson says it might be a good time to develop more wells or pipelines to reliably put water into tanks.
   
• Cattle Calving and Grazing – In the latest Nebraska Agricultural Statistics Service report, the state’s cattle and calves rated 75% good to excellent. Rick Rasby outlines condition guidelines for cows yet to calve and discusses how cattle producers have benefitted from cows feeding in corn stalks.
   
• Weather Forecast – Al Dutcher, UNL Extension state climatologist, gives his forecast for the coming week.

Visit Market Journal on YouTube to view the entire February 1 episode online.

Next Week on Market Journal

Frayne Olson from North Dakota State will join us to analyze wheat markets. We will look at Farm Service Agency plans on farm program implementation and feature more coverage from the Port of New Orleans as part of the Nebraska Soybean Board’s See for Yourself international marketing program.

Broadcast Times

Market Journal — television for agricultural business decisions — is funded by the Nebraska Soybean Board.

View this week's program, as well as previous programs, online at marketjournal.unl.edu and watch for future broadcasts on these networks.

• NET1 – Saturday, 7 a.m. CT
• NET2 – Sunday, 9 a.m. CT
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