FRIDAY, JANUARY 27, 2012
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JG-TC JOURNAL GAZETTE & TIMES-COURIER
Farm Focus AN ANNUAL SPECIAL SECTION FROM THE JG-TC
‘THIS TECHNOLOGY IS WAY OUTSIDE THE BOX’
Soaring value of farmland has investors buying in BY ROB STROUD JG-TC Staff Writer
Ken Trevarthan/Staff Photographer
Farmer Todd Easton demonstrates part of ag Management Solutions advanced farming system that is a control component of his tractor Jan. 18 at his farm near Charleston.
New technology helps farmers maximize yields ‘It’s not how hard you work now but how efficient you are’ BY HERB MEEKER JG-TC Staff Writer
CHARLESTON — Todd Easton, like many farmers, knows technology helps keep the yields and revenue return in balance. But in recent years, he has added a “smart tractor” and other technology to his operations that put some field tasks in cyberspace and the equipment cab. “We started out with yield mapping about 2000,” said Easton, whose family farm corporation works 3,400 acres, including outright ownership fields or custom farming for two neighbors, in Coles and Douglas counties. “We’ve kind of grown with it since. Now we are looking at advanced farming systems with selfsteering of the tractors and systems where parts of the sprayer or the planter will be shut off automatically so you don’t overlap in a field.” Though these advanced systems are expensive, they can pay dividends in the long run, Easton said. “When I put a pencil to it on what it can save me, it amounted to a good return. It helps us with doing our job to get the most out of the field,” Easton said. Brian Shobe of Arends Brothers John Deere in Ashmore explained the ag Management Solutions technology connecting tractors and combines through interchangeable wireless receivers — called “globes” with their bright yellow domed tops — can provide sub-inch accuracy for planting and harvesting.
Ken Trevarthan/Staff Photographer
Advanced farming system monitors in the cab of Charleston farmer Todd Easton’s tractor provide accurate location, planting and harvesting information.
“When I put a pencil to it on what it can save me, it amounted to a good return. It helps us with doing our job to get the most out of the field.” “When they plant in the spring the same measurements will be there in the data system for each stage of the crops. And with our system we can serve farmers over many miles,” Shobe said. Other increasing costs for farmers makes these technological advances a benefit for seeking the best bottom line. “A (container) of seed corn costs $300 if you overplant on each pass, then it adds up. Considering that, you can pay for this equipment quickly,” Shobe said. “This technology is way outside the box. But it’s all about maximizing your return,” said Brian Medsker of Schilling Brothers John Deere of Mat-
toon. “You have to structure your farm operation where you’re not wasting seed or anything else. When you buy seed today it’s not in big bags but mini-bulks. Now with this technology farmers will have some left over. So it is easy to see what you’re saving.” These advances are making it easier for farmers to control more and more from the equipment cab at different stages of a crop year. For example, new advances can have the combine operator speeding up the unloading of the hopper with wireless integration of other equipment in the field, much like two relay runners completing a baton exchange during a track
meet. Time wasted can be costly to farmers. Easton can see the benefits of the integrated technology for combine unloading operations. “That’s unloading on the run. I’d love to control it from the combine cab like that,” Easton said. The combine and tractor cab will eventually become true mobile offices for farmers conducting transactions and market checks, Easton said. Right now, he uses a Blackberry device. Placing his laptop in the cab at this point can be awkward on spacing at times. See TECH, 3
FARM FOCUS 2012 IS SPONSORED BY
CHARLESTON — Auctioneer Mike Stanfield had never seen Coles County farmland without commercial prospects sell for $10,500 per acre until last month, when a 240-acre track netted this figure. The Stanfield Auction Co. owner said this $10,500 high followed local farmland values increasing from $7,500$8,000 per acre to $9,000$10,000 per acre during the last two years, following a national trend of rising values. “I would say right now is a definite high in the market that seems to be nationwide,” Stanfield said. Carl Probst, a Lerna grain farmer who serves on the Coles County Farm Bureau Board, said Coles County farmland values have made a “huge jump” as they follow a trend that has been seen in Iowa and other big grain-producing states. “You might say they are at an all-time high. We have had run-ups in land prices in the past but nothing this lofty,” Probst said. Stanfield, Probst and others whose work involves farmland sales attribute this trend to corn and soybean prices rising, interest rates remaining stable, and farmland becoming increasingly popular with investors. Pat Harrington, director of farm services for First MidIllinois Bank & Trust in Mattoon, said growing demand for corn and soybeans in developing countries has helped grain prices rise at a steady rates since 2005, when they were valued at the cost of production or even below. Harrington said rising grain prices have boosted farmland values and brought in more income that farmers can use to purchase additional land, as well as equipment, conservation measures and buildings. Stanfield said real estate has highs and lows but overall it is one of the safest investments, especially in comparison to the volatile stock market. He added that farmland yields a higher rate of return than certificates of deposit or savings accounts, for example. “Land is a commodity. It does have value. It is commodity that is bought and sold and traded,” Stanfield said. Coles County Supervisor of Assessments Chad Turner said he has seen more investors from outside of the
“You might say they are at an alltime high. We have had run-ups in land prices in the past but nothing this lofty.” area purchasing farmland to rent out during the last couple of years, although it has not been a large increase. Turner said these investors are willing to bid high for farmland because they feel confident that they can recoup their investment in the long term. Stanfield said he has been promoting auctions in a region that covers three to five states to capitalize on the higher land values and on prospective buyers’ online research. He said the scarcity of available of farmland has prompted buyers to look farther afield. Probst said a tract of land might only be on the market once in a lifetime, so bidding for this tract can become intense from prospective buyers inside and outside of Coles County. Although grain and farmland values are high, all of those interviewed for the JGTC Farm Focus cautioned that this doesn’t mean farmers are amassing great wealth because of these market conditions. For example, Probst said diesel fuel for farming climbed to nearly $4 per gallon last summer. The costs of equipment, fertilizer, seed, meeting environmental regulations, and other expenses have continued to grow. “The actual profit per acre, while it is up, is not at skyhigh levels for farmers,” Harrington said. Regarding the future of farmland values, Harrington said prices will likely level off somewhat in the future but will still have a positive long-term outlook because of the growing demand overseas for grains that farmers produce. Stanfield projected that farmland values will likely be steady to high during the immediate future. Probst remained cautious about the prospects for these values. “There will probably be a time when farmland values will turn around and come back soon,” Probst said. Contact Stroud at rstroud@jgtc.com or 238-6861.
INSIDE FARM FOCUS Coles County SWCD Farmer of the Year . . . . . . . . . . page 2 Coles County Farm Bureau Outstanding Member . . . .page 4 U of I Extension local Director Jim Looft . . . . . . . . . .page 5 Mattoon High School’s renewed ag curriculum . . . . . page 6 Cumberland County SWCD top conservationist . . . . . page 8 Central Illinois soil is vineyard’s secret . . . . . . . . . . page 11 Arthur’s ‘curcurbit connoisseur’ . . . . . . . . . . . . . . . page 11 Greenup family hooked on raising llamas . . . . . . . . page 14 Effingham County SWCD family of the year . . . . . . page 15 Beekeeping class set in Effingham . . . . . . . . . . . . . .page 17 Rardin farm include ‘hoop house’ . . . . . . . . . . . . . . .page 18