Farmland
Farmland values per acre soared a record 25
percent for the year ending March I. 1974. (table 1).
The increase surpassed the largest previous rise of 22
percent in 1920 (March 1) and 21 percent increase for
the year endirtg this past November 1.
The index of farm real estate values per acre is now
187 (March 1. 1967 = 100). This 87 percent increase
over the past 7 years converts to a compound rate of
increase of 9.35 percent per year.
North Dakota topped all States with a 36 percent
jump (fig. 1). primarily on the basis .of abnormally
high priced small grains. lowa and Illinois followed
closely with 34 percent increases. In all. 12 States
showed increases of 30 percent or more. Colorado led*
the Western States with 27 percent, (last November.
Colorado led all States with a 33 percent rise).
Washington’s 11 percent was the lowest increase
nationally.
Reasons for record jump
A record high net farm income in 1973 and
considerable optimistism regarding future levels of
net farm income set the stage for the record jump in
farm real estate values.
Farm operators’ realized net income for calendar
year 1973 was $26.1 billion—one-third larger than
1972’s $19.7 billion and nearly double 1967’s $14.2
billion.
Expanded export opportunities for U.S. farm
products appear to have shifted expectations of man v
farmland buyers and their lenders to a new plateau
regarding the future well-being of U.S. agriculture.
Consequently, more people are interested in buying
farmland. At the same time, existing owners and
heirs can see financial benefit from maintaining
ownership of farmland, above those from alternative
investiments, as long as prospects for sizable
increases in either rents or land prices remain
favorable. Even though the farmland transfer rate
need not be affected materially by increasing
optimism, average farmland value increases will
reflect the degree of optimism prevalent in the
market. %
NEW HOLLAND SALES STABLES, INC.
SUMMER
PROMOTIONAL
SALE 3
100
REGISTERED
COWS
FRIDAY EVENDK,
7:30 P.M,
Featuring a fine selection of consignments from some of the better herds
in Pennsylvania. Some real show prospects and foundation cattle with good
pedigrees.
12 VG COWS SELL
With records up to 20,000 lbs.
SPECIAL MENTION 5 Astronaut Daughters
1 “VG" 89 pt. 3 yr. old with 2 yr. old record of 19,000 Milk and 700 Fat.
She has 2 “VG” full sisters.
A real fancy 2 yr. old Astronaut from an 87 pt. Kingpin with over 20,000
lbs. milk.
6 Whirlhill Kingpin Daughters with records to 17,000 lbs.
A 2-year-old Kingpin Daughter from Excellent Granddam,
5 Ivanhoe Star Daughters.
A "VG” Senator Daughter with an 18,000 lb. 4 year old record, her dam by
Pride Admiral with 29,000 milk.
3 Registered Red & Whites.
3 Registered Bulls from high record Dams.
Other Sires Represented: Hagan, Black Eagle, Round Oak Electrom,
Charmer, Starman. Milk & Honey.
Selected by John J. Stoltzfus
Pedigrees - Norman Kolb
Abe Diffenbach, Manager
NOTICE TO CONSIGNORS PLEASE HAVE 30 DAY TB AND BLOOD TEST
ON ALL ANIMALS FOR OUT OF STATE SHIPMENT. ALSO HAVE ALL
CATALOG INFORMATION TO US BEFORE JULY 17.
Values Soar 25 pet.
Farm mortgage landing
Knrm mortgage lending by the Federal land banka
aet record levela during 197.1 and remained strong
throughout the first quarter of 1974. New monev
loaned during the firat quarter tbtaled $796/2 million
aa compared with $711.6 million in the firat quarter of
197.1. or an increase of 12 percent. Federal land bank
loans outstanding increased 19.8 percent from
March 31. 1973. to March 31. 1974. reaching $11.5
billion. Aa of December 31. 1973. land bank loans
outstanding had totaled $10.9 billion.
Insurance company lending remained strong
during the first quarter of 1974 at interest rates
averaging about 9 percent. However, repayments to
insurance companies increased aharplv and total
loans outstanding remained unchanged over the
quarter.
Final data for Farmers’ Home Administration
(FmHA) loans are not yet available but loan volume
is up substantially over the previous quarter.
It can be anticipated that funds for farm loans will
remain readily available throughout 1974, but
interest rates will likelv show upward movement
Market activity and conditions
Opinion data from all areas (agricultural plus
nonagricultural influenced areas) from the March 1
survey (table 2) show that 70 percent of the
respondents believe that farm and ranch land will
tack on further gains (at least 5 percent) bv March
1975. Only 2 percent expect a decrease. This
distribution is essentially unchanged from the March
and October 1973 surveys. It is, however, much more
upswing-minded than the March 1972 survey when
less than half the respondents expected land prices to
increase during the following year. The percentage of
reporters, m the most recent survey, expecting higher
land prices is greater in primarily nonagricultural
influenced areas (75 percent) than in primarily
areas (67 percent).
The vast majority of survey reporters again
indicated that farm and ranch land prices were up
from 6 months ago. but the percentage declined from
, n
Calomel, another name for
chloride of mercury, a white
powder, means “beautiful
black!”
iquv .oppi. _ . orage Blower
virtually unpluggable Takes only what the high capacity 54-mch
blower can handle. Keeps it operating at maximum efficiency
High performance blower has cupped paddles and extra heavy
flywheel Delivers more blow power per horsepower 50 h p
tractor with 540 rpm PTO provides ample power tor 70 ft silo
- (100 h p PTO available.) Badger's blower pipe is carefully tested
tot strength, straightness and tightness Electric, Manual Con
trolled or stationary Level-Ro silage distributors let you pack
more silage in, get better silage out
See Your Locol
Bi _ r GROMUEI* FARM
LLOYD E. KREIDER SERVICE
R.D.#l Mechanics Grove
Cochranville, Pa. QuanyvHle, Pa.
Ph. [2ls] 932-2934 Ph. 786-7318
Tibia 1 .-Farm rail aatata: Indaxat of avaraga valua
par acra, by Slata, groupad by farm production
region. 1972-1974' "
(March 1.1947-100)
State
Norihmt
Main*
N*w Hampshire
Vermont
Massachusetts ..
Rhode Island . .
Connecticut .. .
New York
Now Jersey .. .
Pennsylvania .. .
Delaware
Maryland
Lake States
Michigan .
Wisconsin
Minnesota
Corn Belt
Ohio ..
Indiana
Illinois,
lowa ..
Missouri
Northern Plains
North Dakota
South Dakota
Nebraska .. .
Kansas ... .
Appalachian
Virginia ... .
West Virginia
North Carolina
Kentucky ...,
Tennessee
Southeast
South Carolina
Georgia
Florida ....
Alabama . . .
Delta States
Mississippi .
Arkansas .
Louisiana . ,
129
142
'139
Southern Plains
Oklahoma
Texas
Mountain
Montana
Idaho
Wyoming
Colorado ....
New Mexico . ..
Arizona
Utah
Nevada
Pacific
Washington
Oregon
California
48 States
’ includes improvements 2 Indexed up by the average ol the
percentage change in Georgia and Alabama index values
CARL L. SHIRK SHOW-EASE STALL
R.DJS CO.
Lebanon, Pa. 523 Willow Rd.
Ph, 867-3741 - Lancaster, Pa
„ Ph. 299-2536
1973
1972
Mar
Nov.
Mar
198
187
174
176
211
201
155
191
167
194
173
144
166
155
ISO
167
134
162
150
179
144
135
162
136
127
148
127
137
119
124
130
IS7
147
131
129
141
160
127
113
lie
122
143
134
122
137
129
142
130
145
137
127
118
127
118
171
211
164
153
167
160
194
154
146
156
149
177
138
137
142
179
201
173
195
162
175
136 2 147 2 155
146 154 167
144
159
148
134
148
146
150
156
131
138
138
147
159
159
153
152
151 '
170
186
251
148
150
139
134
-143
164
180
238
133
179
113
145
187
115
130
170
112
150
132
Ily
uggable
Capacity
jerTA-54
ge Blower
ISAAC W. HURST
R.DJI
East Earl, Pa.
Ph. [2ls] 445-5767
1974 -
Nov.
Mar
216 232
199 233
240 27*
227 262
172 199
211 227
167 ' 174
199 214
164 186
184
161
173
189
207
161
152
150
169
180
193
172
183
178
168
151
168
157
223
275
200
182
206
194
224
186
173
193
223 238
244 264
2 187 2 200
200 211
182
186
174
155
175
161
183 Z
191
169
170
203
203
191 ,
194
186
208
216
299
158
201
127
160
213
131
187
170