Homeland 2016 -- Farm, Ranch & Home Real Estate

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Homeland 2016

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Oak Creek Retreat

Fresh Water Ranch

Aladdin, WY

Newcastle, WY

Wild and scenic Black Hills ranch. 3,669 acres with live water, highway access, excellent wildlife habitat, and incredible mountain scenery. New water projects, new fences, and new ranch roads. This is one of the top quality recreational holdings and one of the largest blocks of deeded land available in the Black Hills. An exceptional offering. $8,500,000.

Impressive 186 acres with a one of a kind home that combines maximum efficiency with detailed elegance. Many custom features including a deluxe kitchen, custom cabinetry, private den, spacious master suite, spa tub, gas fireplace, hard-wood floors, French doors & much more. Bunkhouse, horse barn & 40’ x 120’ shop. An outstanding find with live water. $1,387,000.

2D Farm

Eagle Ridge Ranch

Butte County, SD

Sundance, WY

Amazing Black Hills setting between Sundance and Beulah with 442 deeded acres and a 320 acre adjoining State lease. Scenic landscape with wooded canyons, hidden valleys, hay meadows, interesting rimrocks and panoramic views. Custom log home situated to capture the views. Also 2 hunting cabins, shop and barns. An extraordinary offering. $1,500,000.

Irrigated farmland in western South Dakota.

161 acres which includes 119 acres of flood irrigated land with both class three and four soils. Currently the property has 40 acres planted to winter wheat with the remaining fields in oats and alfalfa. Has an electrical drop, Butte-Meade Water line runs along the county road and it has a livestock reservoir. $324,000

ElBarBee Ranch

Bear Lodge Ranch

Newcastle, WY

Sundance, WY

An iconic Black Hills ranch with 880 acres in a scenic and remote setting on the west side of the Bear Lodge Mountains. A high country ranch with landowner elk tags and an incredible mountain landscape including excellent wildlife habitat and panoramic views.

The ranch is a well-known landmark which has been in the same family for many years. $2,464,000.

Distinctive Wyoming ranch with 1,074 acres in a picturesque Black Hills setting with extensive improvements. The custom crafted log home has end of the road privacy. Wellkept set of support buildings including a guest apartment with horse barn, shop, equipment shed and machine shed. An unique setting on Stockade Beaver Creek. $3,800,000.

Reverse CX Ranch Newcastle, WY

Hard-grass ranch with live water. 15,226± acres, including 8,781± deeded acres, 5,325± acre Grasslands permit and 1,120± acre State Lease. The ranch has been managed to promote good grasses and has numerous water sources throughout the ranch.

A low-overhead operation in productive cattle country with abundant water resources. $4,500,000.

Kara Creek Divide Ranch Sundance, WY

Picturesque Black Hills ranch along Inyan Kara Creek. 2,019 deeded acres and 80 acres BLM lease. The striking combination of topographical features provide spectacular scenery and an excellent environment for wildlife. Creek bottoms, hidden meadows, rugged wooded hills and high plateaus with wide ranging views. Premier setting with live water. $3,450,000

Lytle Creek Ranch Hulett, WY

This is one of the most picturesque and private settings in the Bear Lodge Mountains.

1,160 acres with a mountain stream and the entire eastern side bordering Black Hills National Forest. Good set of ranch improvements. Enjoy unobstructed views, outstanding scenery, live water, abundant wildlife, and access to public lands. $3,480,000.

Box 98, Newcastle, WY 82701 | Phone: 307-746-2083 Print brochures at www.eRanches.com | Licensed in WY, SD & MT

Sign up for email property updates at www.eRanches.com 2

Homeland 2016

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SERVING THE LIVESTOCK INDUSTRY FOR FIVE DECADES 1501 5TH AVENUE, SUITE 101, BELLE FOURCHE, SOUTH DAKOTA 57717

1 (877) 347-9100 | (605) 723-7001 | (877) 347-9126 (FAX)

SUBSCRIPTIONS:

1 (877) 347-9100 Publisher: SABRINA “BREE” POPPE Cell (605) 639-0356 | Office (877) 347-9104 spoppe@tsln-fre.com Editor: CARRIE STADHEIM cstadheim@tsln-fre.com Digital & Sections Editor: MARIA TUSSING mtussing@tsln-fre.com AG DIVISION Audience Engagement Coordinator: DANIELLE SCHLEGEL: (485) 770-6503 dschlegel@tsln-fre.com | dschlegel@thefencepost.com Interim Fence Post Editor: SAM FOX sfox@thefencepost.com Graphic Designer: CHRISTA VANDYKE Cattle Marketing Assistant & Nebraska Territory Account Manager: CARISSA LEE: (877) 347-9114 | clee@tsln-fre.com Special Projects Coordinator & Account Manager: DIANNA PALMER: SD–N. of I-90 West of the River (605) 423-6045 | (877) 347-9112 dpalmer@tsln-fre.com Account Manager: SUSAN CABLE: SD–S. of I-90 Rosebud East Territory (605) 840-1986 | (888) 648-4449 scable@tsln-fre.com Major Accounts Manager: SARAH SWENSON: Wyoming & Montana (303) 710-9254 | (855)370-0539 sswenson@tsln-fre.com Nebraska Account Manager: GAYDAWN ROGERS (970) 301-2190 | grogers@thefencepost.com Greeley/Fort Collins Account Manager: MARY ROBERTS (970) 301-2192 | mroberts@thefencepost.com Southeastern & Western Colorado: CHRISTINE MCGEE (970) 301-2191 | cmcgee@thefencepost.com Foothills-West Colorado: DEANNA LEVINE (970) 590-0412 | dlevine@thefencepost.com

2016

Contents

6 Taxing Situation

PROPERTY TAXES ON AG LAND VARY WIDELY BY STATE

18 Building Up

THE FUTURE OF AGRICULTURE IS BRIGHT, BUT IT ISN’T EASY

26 Mineral Rights

AND WHAT THEY MEAN TO THE LAND OWNERS 34 Staying Connected

IN RURAL AMERICA

42 Navigating

THE RETIREMENT MAZE

54 Just Geography

LOCATION MAY HAVE LITTLE EFFECT ON COMMODITY PRICES THESE DAYS

61 Advertiser Index

CLASSIFIEDS: CLASSIFIEDS@TSLN-FRE.COM

MAINLINE: (877) 347-9122

COVER PHOTO COURTESY HEWITT LAND COMPANY

COPYRIGHT 2016. ALL RIGHTS RESERVED. ERRORS: The Tri-State Livestock News & The Fence Post shall be responsible for errors or omission in connection with an advertisement only to the extent of the space covered by the error.

Opinions stated in letters or signed columns do not necessarily reflect the official opinion of Tri-State News.

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Homeland 2016

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Taxing Situation PROPERTY TAXES ON AG LAND VARY WIDELY BY STATE

By Ruth Nicolaus

P

roperty taxes began before the U.S.A. was born; in fact, they, along with other taxes, helped fund the Revolutionary War. And now, more than two centuries later, farmers and ranchers are still paying them.

4 A

Assessed at the county level, the formula for how they are figured varies widely.

Property taxes are usually divided into four categories: agricultural use land, residential, commercial, and centrally assessed (including railroads, pipelines, cell phone towers, and telephone lines).

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For agricultural use land, concessions are given, meaning ag land is assessed at a lower value per dollar. Depending on the state, it is assessed either at a lower rate of market value than other non-ag assets, or it is assigned a lowerthan-market appraised value.

Each state has its own formula for assessing the value of that land. After

the value has been figured, that value is multiplied by the tax concession value, which varies from state to state.

The tax concession value in South Dakota is in the upper 80 percent range (it varies by county); for Nebraska, it is 75 percent, Wyoming is 10 percent, Montana is 2.16 percent, Colorado is 29 percent, and Kansas is 30 percent.

The biggest differences in ag property taxes from state to state are how the land is assessed.

Several states assess their agricultural property tax based on productivity of the land.

Then after the value is multiplied by the concession value, it is multiplied by the mill levy. Mill levies are set by each municipality or district, and vary annually, depending on budgets for public education, townships, community colleges, fire districts, hospitals, airports, and more. A mill is 1/10 of a penny, or 1/1000 of a dollar, equal to $0.001 or $1 per $1000.

For crop ground, South Dakota uses a productivity formula based on soil ratings. If the soil is capable of growing a crop, that soil is valued on the productivity formula. If it is range-rated soil, value is figured using data for cash rent from the National Agricultural Statistics Service (NASS). Formulas used are based on an eight-year Olympic average, meaning the highest data and the lowest data are kicked out, and the remaining six years are used to figure the average.

For example, a piece of cropland in Kansas whose assessed value is $10,000 (for easy computing), would be multiplied by 30 percent (the state’s concession value), which equals $3,000.

Then that amount is multiplied by the mill levy in that district, (for example in Phillips County the mill levy is .198654 x $3,000.) The taxes in this example would be $596.

South Dakota switched from a market value to productivity formula in 2009. When the switch was made, the state legislature’s goal the first year was to remain revenue neutral, to keep ag value in the state at the same level when the new assessment took place.

Legislation was put in place to allow counties to raise values by ten percent a year, so cropland owners weren’t hit

PHOTO BY MATT VINCENT

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with the full productivity value right away, said Deb Kahl, county assessor for Walworth County, South Dakota.

But then commodity prices raised productivity values rapidly, and “10 percent didn’t keep us even,” Kahl said, “and we were falling behind. The ten percent (increase) would have gained us a little each year, till

we got up to full productivity.”

So the S.D. Legislature passed laws that required cropland property tax values to increase, depending on where the taxable value was. For counties who were less than thirty percent from their full agricultural income, they were required to not increase or decrease more than fifteen percent. If the county was

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Homeland 2016

TRI-STATE LIVESTOCK NEWS | THE FENCE POST

fifty percent or more from its full ag income value, it was required to not increase or decrease more than twenty-five percent.

This creates a discrepancy between cropland, valued at productivity, and range land, assessed on cash rent values, said Kahl. “Now I’m sitting here where my grass guys are paying taxes on virtually one-hundred percent of their value, and crop guys might be up to seventy percent.

We have nothing very well equalized because my crop guys aren’t paying on productivity, but my grass guys are.”

The S.D. Legislature has set a sunset rule for 2018; if counties are not up to the full productivity value by then, they must increase values to reach it. There’s only one more legislative session between now and then,

Kahl points out, “so they may make more changes. We’ve had some kind of change to that legislation (every year) ever since it went into effect.”

Colorado and Kansas value their agricultural land much like South Dakota does on its crop land.

In Colorado, ag land is valued based upon what it’s capable of producing, per acre, on an income ap-

proach, said Yuma County, Colo. assessor Cindy Taylor. A ten year Olympic average is taken of what the commodities sold for, less expenses (chemicals, fertilizer, seed, water, and others). Appraisal values are figured every other year, in the odd years.

In Kansas, ag land values are set by the state for every soil type, with each having a different value.

A Look at Ag Land Prices }}These charts, from the National Ag Statistics Service, give an average of ag land prices nationwide. For more in-depth, specific data go to www. nass.usda.gov.

PHOTO BY MATT VINCENT

TRI-STATE LIVESTOCK NEWS | THE FENCE POST

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An eight-year average is used. Formulas used in Kansas are figured by Kansas State University.

for houses is at 7.96 percent, and it should go up to 8 percent or higher.”

For Colorado, assessment rates are set by state statute and are 29 percent for ag and commercial property. The residential rate is set at 7.96 percent of value, and oil and gas is set at 87.5 percent which has helped Yuma County, which is fifth in the state in natural gas production.

If any Great Plains state is a quagmire for property taxes, it’s Nebraska.

Unlike any other state in the union, Colorado is not able to raise taxes without the consent of the people.

In 1992, voters approved the Taxpayer’s Bill of Rights, a constitutional amendment nicknamed TABOR. It satisfies some taxpayers’ frustration with higher taxes, says Taylor, but it hamstrings local government when values go up but tax rates do not. “Our assessment rate

PHOTO BY MATT VINCENT

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TRI-STATE LIVESTOCK NEWS | THE FENCE POST

Unlike its neighbors, ag land taxes in the Cornhusker state are set by market value of the land, not its productivity.

As land values have skyrocketed, so have property taxes. Statewide, ag land taxes have averaged an increase of 10 percent annually, on a ten year average.

To figure ag land tax values, the county assessor takes three years of sales data and figures an average for the value of the land, based on its selling price. Assessors theoretically try to get data for

ground that is similar, but they’ve sometimes had to “borrow” sales data from other counties to figure an average, with the data not always representative of the land being assessed.

The ag land tax valuation is a three year average; commercial and residential values are a fiveyear average.

Nebraska has a lower income and sales tax, putting a lot more pressure on property taxes.

Mark Haynes, a farmer who lives in Dawes County, Nebraska, in the northern Panhandle, has done research on Nebraska’s property tax and is well-versed on his state’s system as well as other states.

for the school. Thus, counties with a huge amount of agricultural land often get very little in terms of state funding.

Sioux County, Neb. (in the west) and Bennington, Neb. (a community on the north outskirts of Omaha, in Douglas County) are the perfect example. In Bennington, it costs about $10,000

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“You could add up property taxes for the states of Montana, South Dakota, North Dakota, Colorado, Kansas, and Oklahoma, and all those states combined have less in ag taxes than we do,” he said. “We pay two and a half times more for ag taxes than the surrounding states.”

Added to the issue is the reliance of public education on property taxes. State funding for K-12 schools is distributed on a needs-based system; if property taxes can pay for the education in a county, the state will kick in very little funding

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Homeland 2016

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to educate a student annually.

Student-teacher ratio is 15:1. In Sioux County, Neb., with 1,300 people in the county (compared to 537,000 in Douglas Co.) student-teacher ratio is 3:1 yet the cost of education is $28,000 per student, due to fixed costs like utilities, teacher salaries, and others. Sioux County Public School in Harrison, Neb., receives

$1,200 in state funding. All other school funding must come from property taxes from the county.

And the problem won’t get any better, says Haynes. In the 1930s, seventy-six percent of the population lived outside city limits. Now it’s reversed. “It would make sense that the tax code keeps up with the demographics of the state.

Why would you tax somebody on

all of their property, and (lessen taxes on) somebody else’s property, to fund education, when you have 76 percent of the population living within city limits? Cities represent thirty-six percent of the taxable property value. It’s too much of a burden for ag.”

Many ag folks, are not happy with their property taxes in Nebraska, said Senator Al Davis, Hyannis, Nebraska. “Since we are a commodity-based industry, the prices are beyond our control and we are at the mercy of the market.

When the market collapses like it has this year, and the valuation of cattle is down fifty percent from a year ago, property taxes as a percentage of your whole income double.” And the problem will only worsen. “We haven’t come to the peak on ag valuation yet.” Davis said.

The fall in commodity prices hasn’t been reflected yet in the average. Deb Kahl, Walworth County, South Dakota, assessor, sees the same problem. “Corn goes down by half and I raise your ag land (values) by twenty-five percent. Why? Because I have one year of $4 corn and seven years of $7 corn. This year, the high and the low drop off so the $4 corn never happened in our formula.” Next year, there is some relief. “And next year, finally the $4 corn PHOTO BY MATT VINCENT

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TRI-STATE LIVESTOCK NEWS | THE FENCE POST

kicks in and I get to use the five high (years) and the one low (year.)”

penses that quickly in a county, so consequently, the mill levy goes up.”

Not only have commodity prices dropped, but oil prices have as well. For areas with oil production, that’s a double whammy. Terry Kastens, a farmer in northwest Kansas and a retired K-State professor, notes that taxes can go up for a variety of reasons. “When oil prices collapse, counties don’t get as much taxes in. You can’t cut your ex-

Oil production in eastern Montana has had an unforeseen consequence in McCone County. The county saw very few oil wells, but property taxes have increased because of a demand for housing. “Even though we don’t have a lot of oil in this county, we got caught up in it because we were adjacent to counties who received a lot of the revenue,” said Janet Berry,

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with the McCone County Treasurer’s Office. Houses were selling for “way more than what they should have been, because of the lack of housing. Then we put out the new tax bills and property tax doubled.

People were not happy.”

There’s a feeling of frustration among older people as well. “They see the value of their homes go up, even as their homes get older,” said Julie Tweedy, oil and gas clerk with the Phillips Co., Kansas assessor’s office. “People are willing to pay more for homes.” Tweedy, who grew up on a farm and whose mother and brother still derive income from ag land, says it’s tough. “It’s on an eightyear average, and several years ago,

our land and crops were worth a lot more. Now the bottom has dropped.

It breaks our hearts when (farmers and ranchers) come in and say, ‘how can you do this to me?’ We get it. My mom’s in that boat, and so is my brother. We all understand and feel it.”

In South Dakota, county assessors are called directors of equalization, and the name is appropriate, Kahl said. “The main thing we strive for, is to try to make sure that no matter how much (taxes) they need to get, you’re only paying your fair share, that your property is assessed equally to any other property that’s just like yours, or that a better prop-

PHOTO COURTESY OF MONTANA OFFICE OF TOURISM AND BUSINESS DEVELOPMENT.

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TRI-STATE LIVESTOCK NEWS | THE FENCE POST

erty is assessed higher or a lesser property is assessed lower.”

And taxpayers have an obligation, too, Kahl thinks. “I always say to people: the school and the county and the city are spending your money. When was the last time you attended a budget hearing? Because that’s where they’re spending your money. If you want to control how your money is being spent, you need to go to a budget hearing and make them accountable for what they’re spending. As a tax payer, you have a job, and your job is to make sure they’re only spending what they need, and they’re spending it wisely. It’s your money.”

People in Walworth County, South Dakota, like everywhere else, think their taxes are too high. But there is some sense of consolation for Kahl. “If I have to pay money to the government, I don’t want to pay it to any higher level of government than necessary. As long as I can pay that property tax directly to my county, that’s the most control I will ever have over that tax money.”

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South River Real Estate Mike Lowry, Broker/Owner • 970-209-4312 • 970-249-2662 Debra E. Kane, Associate Broker • Cell: 970-275-2791

HIGH DRY RANCH 159.3 Acres * Delta * Delta & Montrose Counties The High Dry Ranch is located on Amber Road consisting of 159.3 acres with approximately 82 irrigated acres currently in hay and row crops.

Included with this property are 81.5 shares of UVWUA and the gated pipe used to irrigate the ranch.

Buttermilk Creek also meanders its way through and provides year round livestock water. The creek bottom can be utilized in an number of different ways such as pasture, wintering livestock, calving or hunting the wild game that traverse the area. The residence located on the property has 1,848 sq. ft. with 3 bedrooms and 2 baths, and features a fireplace, large country kitchen, beautiful yard and mature trees. Also located on the property is a 30x45 shop with concrete floor and electricity. If you put all these attributes together, this ranch has everything a rancher or farmer would need to get started. You really need to come take a look at this very unique piece of property in order to appreciate its caliber. M.L.S. #724348 Price: $785,000.00

OPTIMUM FARM GROUND 60.65 Acres * Olathe * Montrose County This property is located immediately off a paved county road and features at least 46 irrigated acres with Uncompahgre Valley Water Users Association project water. It is in close proximity to town and local schools. Thereby making it a great location to build your new home, start your livestock or farm venture or just add to your current farm ground. In addition there are great views of the surrounding mountains to enjoy. Come take a look to see what possibilities you can fulfill. M.L.S. #718780/#718782 Price: $239,000.00

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PRIVATE, SECLUDED PROPERTY WITH RIVER FRONTAGE 15.52 Acres * Olathe * Montrose County This exceptionally beautiful location features a 3,468 sq. ft.

3-bedroom, 3-bath home with gourmet kitchen, rock gas fireplace in the living room, hardwood and tile flooring, office and bonus room as well as a 6x12 storage shed, 32x64 shop with 2-10’ doors and man door, concrete flooring, electricity and two storage rooms. To add to the overall beauty of the property there is white vinyl fencing outlining the yard and driveway with rock borders separating the gravel circular driveway and yard area. The home and out buildings are in immaculate condition and the landscaping is manicured to perfection. You can relax on the large deck with a Pergola or the back patio with a fire pit and gaze at the pond, the cows grazing in the adjoining pasture, wildlife traversing the property and the pristine mountains of the area. Another great feature is there is irrigation water available. You really need to come take a look at this little piece of heaven for yourself. M.L.S. #692057 Price: $695,000.00

PRIME FARM LAND 34.82 Acres * Delta * Delta County This outstanding parcel of farm land features level topography with a concrete ditch along the east boundary and also includes some gated pipe. In addition, there are approximately 35 shares of Uncompahgre Valley Water Users Association project water which run with the land. Another important factor is there are no covenants affecting the same. Therefore the possibilities are limitless. Come take a look for yourself to determine all it has to offer. M.L.S. #714591 Price: $260,000.00

18101 Woodgate Road, Montrose, CO 81403 email: mlowry@soriver.com 16

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BX Series Series BX

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www.bgequipment.com *20% down, 0% A.P.R. financing for up to 84 months on new Kubota BX, B (excluding B26), L (excluding L39/L45/L47), M (excluding M59/M62) Series Equipment is available to qualified purchasers from participating dealers’ in-stock inventory through 12/31/2016. Example: An 84-month monthly installment *20% down,term 0% A.P.R. for up84 to payments 84 monthsofon$11.90 new Kubota BX, B financed. (excluding0% B26), L (excluding M (excluding M59/M62) Series repayment at 0%financing A.P.R. requires per $1,000 A.P.R. interest is L39/L45/L47), available to customers if no dealer documentation Equipment available to qualified from participating dealers’ in-stock through 12/31/2016.

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Some exceptions apply.

Offer expires For warrantyU.S.A., terms,3401 see Kubota’s Warranty CA at www.kubota.com authorized Kubota Dealers.

Optional equipment may be12/31/2016. shown. See us for details on these and other low-rate options or go to www.kubota.com for more information. **Only terms and conditions of Kubota’s standard Limited Warranty apply.

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TRI-STATE LIVESTOCK NEWS | THE FENCE POST

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Homeland 2016

17

BUILDING

By Kayla Sargent

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The future of agriculture is bright, but it isn’t easy.

}

“I

t’s hard but don’t give up on it, I’ve wanted to quit quite a few times,” Jack Geis, owner and operator of Flying E, Inc., said.

Jack and his wife Nicole have built a cow-calf operation from scratch. But it didn’t happen overnight. It took Jack years of work and now they have their own ranch to run 500 of their own mama cows.

“I think one of my biggest accomplishments is that I bought our own place when I was thirty and I had my cows paid off before that,” Geis said. “Then I met my wife, whom I get to work with everyday, and she PHOTOS BY NICOLE GIES

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TRI-STATE LIVESTOCK NEWS | THE FENCE POST

UP

Pregnancy testing gather at bear trap in Ten Sleep Sept. ‘16

runs all the financial stats. We calve out a lot of heifers, so she does a lot of that as well.

It’s just her and I that run this operation together, we don’t have any hired help. So, we just do it all together and we’ve worked out a real good partnership.”

Many young people today strive to accomplish what the Geis’ have. It is important for the future of agriculture that those young people are able to enter the field and be successful. Even though it’s a difficult journey, it can be done with enough hard work and patience.

“The youth of today are who will make the future and unfortunately, especially for those that don’t have families to go back to on the farm, it’s hard to get started,” Mike Yackley, branch president of Onida and Selby, South Dakota BankWest locations, said.

There are many programs now available to help young and beginning producers get their feet on the ground whether they have a family operation to return to or even if they need to start from scratch.

“In recent years, the cost of being in agriculture has increased dramatically. It takes quite a bit of money, so unless you have dad helping you or someone that’s willing to finance the acquisition of your farm, or if you have the capacity to get bank financing, it can be pretty challenging,” said Steve Apodaca, senior vice president of American Banker’s Association (ABA) Center for Agricultural and Rural Banking. “The banking

TRI-STATE LIVESTOCK NEWS | THE FENCE POST

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industry is well aware of these issues and there are programs available from both the Farm Service Agency (FSA) and the USDA B&I program. You can combine a package with all those things and put enough financing together to allow you to enter the field.”

Yackley, who is an ag lender in a rural South Dakota community, is experienced in helping people get set up to start an operation and he says the FSA is a good starting point for someone looking to build an operation.

“There are many FSA programs to work with your local bank. The terms are usually more lenient and they work in conjunction with the banks in your hometown. Your local banks know all of the county lenders that your FSA office has and are fairly familiar with the programs that they offer,” Yackley said. “That’s what I would say is probably the biggest thing for those that are starting out without a family operation to go back to - get connected with the FSA office through your lender,” Meeting with your lender for the first time can be nerve-racking, but if you approach them with the right tone, generally it should be a good experience.

“It’s important to make your first conversation about what it is that you are trying to do and what your plan entails rather than about asking for money. Beyond the money, what you are getting is a business partner that will help you succeed,” said Carl Horne, Young, Beginning and Small Producer Program Outreach Manager for Farm Credit Services of America.

It’s crucial to find a banker that you get along well with. Search around until you find someone that is a match and is easy to get along with.

It will make for a much more successful business partnership.

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TRI-STATE LIVESTOCK NEWS | THE FENCE POST

Nicole’s first bum calf “Pistol” working her at weaning time fall ‘14

“Your banker needs to be involved in what you’re doing. Be straightforward, honest and open and trust in what they can do for you. Communication is key to success. The more information you can provide your lender, the better they understand your operation,” Yackely said.

Jack Geis met with several bankers before he found the right one, but once he did it was an effective partnership.

“Shop around to see what the best deals are out there. There are many bankers and people that want to do business with you,” Geis said. “Our banker is a younger guy, too. He gets what we want to do and what we’re thinking so that makes it easier and he’s really easy to talk to. It’s really nice to find someone like that.”

Still though, finding the money and the right lender seems to be only half the battle when start-

ing up an operation. There is so much to learn, research and decide upon that it can be a daunting task. But there is a bright side, there are many resources available to help with all the calculations from start to finish.

The Farm Credit Service’s Young, Beginning and Small Producer Program was created to help people obtain loans and there is an entire team of experts for each customer to rely on for advice and help along the way.

TRI-STATE LIVESTOCK NEWS | THE FENCE POST

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“We put a team around the customer. So not only do you have the financial officer, who is the lead person in the relationship, but we also have people who focus on risk management and people who are on call at any time to answer questions about the loan and provide advice,” Horne said.

The program takes the customer from start to finish. They have professionals trained to help them run all of the necessary ratios and then customize a loan to fit their needs. They also have opportunities for clients to take business training courses as well as participate in their “side by side” conference with other young producers in the region. This program stresses the importance of managing a business by closely monitoring all the financial data.

“One of my favorite sayings is, ‘you can’t manage what you don’t measure.’ A huge element to effective decision-making is having really good data around you. For example, it’s really hard to execute an effective marketing strategy if you don’t understand the fundamental goal, which is to be above your cost of production or limit how below you are on your cost of production. That should be measured on each enterprise that you are involved in,” Horne said. “We work hard to make sure our customers understand what their performance measurements are and how that should impact their decision making.”

Geis started participating in the program and said it offers information for all levels of the industry.

“Now we’re with Farm Credit Services and they have many different programs to help young people get started and they’re a nice group of people to work with,” Geis said.

Surrounding yourself with a group of educated advisors and mentors in the field will definitely make it a smoother journey. Finding someone experienced in production agriculture is a major component of starting a successful operation.

“I recommend striking up a mentoring relationship with another farmer who’s successful. Then they can meet with them on a regular basis and give them advice,” Apodaca said.

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TRI-STATE LIVESTOCK NEWS | THE FENCE POST

Most any lender in the industry will say that this is one of the most important steps in getting started.

“It’s key to ask for guidance from someone you respect in the area, just don’t do it because they are doing it across the fence because it may not fit in your operation. So, get opinions from lots of people,” Yackley said.

Geis also followed this advice, working for a relative until he was ready to get out on his own.

“I worked for my uncle right out of high school and I was there for about four years, so I learned how to do a lot from him,” Geis said. “He let me run some cows with him, then I was able to get out on my own.”

that really matter,” Horne said. “If you pay close attention you’re getting a masters education in decision making and risk management experience. Turmoil like this most typically brings opportunities to those that are prepared, work hard everyday but keep your eyes peeled for opportunities as they arise.”

Jack’s beloved grandpa’s ‘87 hauling cattle to the new ranch fall ‘15

{

“Remain optimistic.

Agriculture is cyclical and if the industry that you’re participating in right now is down, rest assured that in time, these industries do improve.”

JACK GEIS, OWNER AND OPERATOR OF FLYING E, INC.

Geis’ story is an inspiration to any young people struggling to enter the industry on their own. Even if you are one to look at the glass as half empty, remember that there is always a positive side.

“Remain optimistic. Agriculture is cyclical and if the industry that you’re participating in right now is down, rest assured that in time, these industries do improve.

Quite frankly, with some of the turmoil that we are having, right now is an excellent opportunity to get a front row view watching producers make a lot of decisions

TRI-STATE LIVESTOCK NEWS | THE FENCE POST

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FALL 2016 REAL ESTATE MARKET REPORT

Wood RiveR Ranch

At Mason & Morse Ranch Company we cover a variety of market segments including farm, ranch and recreation/lifestyle properties. There has been some trepidation in the markets as a result of the general election as well as the health of the economy. Generally, inventory has increased for good to excellent quality farm and ranch lands. The demand from buyers has subsided with lower cattle and grain prices impacting optimism.

Working ranch and grassland: This market has declined through 2016 as cattle prices remained soft and continued downward into the fall runs.

Ranch prices are not expected to improve any time soon and inventory continues to increase and price reductions are seen more and more on active listings. We have seen a decline of 15 to 20% on sold prices in a number of the larger grassland areas. The good news is that the concern over a significant decline in the stock market, has pushed buyer interest into the land markets. These buyers are, however, cautious and seeking value.

Recreation and lifestyle properties: There remains a good selection of inventory and sellers have held strong on prices.

It should be noted that some of the geographic areas for these “niche” markets are seeing varying results.

Generally, there seems to be adequate inventory in most market segments.

Farmland properties: The market has softened over the last 12 months as commodity prices for grains have continued to decline. At this point, we have substantial inventories of grain and until we see either 1) a decline in the valuation of the dollar compared to the currencies of our export markets or 2) a supply interruption, typically drought induced, in a major grain growing area of the world, we expect grain prices to remain soft. We feel the direction of commodity prices will largely determine the value of farmland for the time being.

Overall, we expect 2017 to be more active with more inventories. There remains an underlying concern about inflationary pressures that could change the markets rather quickly.

At Mason & Morse Ranch Company we are active in representing both buyers and sellers across much of the United States. We have well qualified agents that are experts in their fields and they are prepared to assist you with your real estate buying and selling needs.

24

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TRI-STATE LIVESTOCK NEWS | THE FENCE POST

Bordering the 2.5 million-acre Shoshone National Forest outside of Meeteetse, Wyoming the ranch operates on 4,000+/- acres with over 1,000 deeded acres. A mecca for wild Yellowstone Cutthroat trout stream fishing with private access to over two miles of the Wood River on the deeded land and another two miles on private lease. Improvements include many new and remodeled buildings. $14,500,000. Contact John Stratman.

continental divide Ranch

Features 96,447 acres in one contiguous block situated in the Haystack Mountain Range in Rawlins, Wyoming. The ranch offers over five miles of North Platte River frontage, a source for irrigation and blueribbon fishing; an established cow/calf operation; opportunities to hunt deer, elk, and antelope. $10,500,000. Contact Kebi Smith.

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Herston Ca Carm attle F arm HerstonHCerston attle F

Ponderosa Ponderosa ranCH ranCH

Located in Loveland used as a registered Two 7 tower pivots Located in Loveland, 120 acres isThis currently 3,000+ acre working cattle and hunting ranch Located in Loveland, CO, this 120CO, acresthis is currently 3,000+ This acre working cattle and hunting ranch storage ponds. Ditch used asAngus a registered ranch and hay production. located in northwestern Nebraska consists of 1,457 used as a registered ranch Angus and hay production. located in northwestern Nebraska consists of 1,457 7 tower along with two irrigation acreslands of deeded lands with excellent grasslandwith andproperty. Impro Two 7 towerTwo pivots along pivots with two irrigation water acreswater of deeded with excellent grassland and and a grain bin. $1,50 storage rightslease and transfer water lease transfer Ponderosa scattered Pine Ponderosa Pine Tree forests. $1,550,000. storage ponds.

Ditchponds. rights Ditch and water scattered Tree forests. $1,550,000. property. Improvements includebarns two houses, barns John Stratman. with property.with Improvements include two houses, Contact JohnContact Stratman. and$1,500,000. a grain bin.Contact $1,500,000.

Contact Karen Mikkelson. and a grain bin.

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The 753+ acres con upland game bird Theconsists 753+ acres consists of good grazing LocatedWyoming in Powell, Wyoming 710-acre working The 753+ acres of good grazing ground, an ground, Locatedanin Powell, this 710-acrethis working orchards.

There are ranchproductive has highlyirrigated productive irrigated ground for an has highly ground for an game bird hunting and ranch also fruit upland gameupland bird hunting preserve andpreserve also fruit with a ranch hous intensive grazing system.

Less than under $10,000/AU under intensive system.

Less than $10,000/AU orchards.

There on along the acreage, alonggrazing orchards. There are four wellsareonfour the wells acreage, numerous corrals an current management.

Whistle Creek meanders the current management.

Whistle Creek meanders with a ranch shop and outbuilding and the with a ranch house, metalhouse, shop metal outbuilding Contact Karen Mikk through the property. $1,150,000.

Contact Kebi Smith. through the property. $1,150,000.

Contact Kebi Smith. numerous corralsoutbuildings. and other outbuildings. numerous corrals and other $830,000. $830,000.

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Contact Karen Mikkelson. nowyFr ange F HigHranCH Point ranCH snowy rsange isHing lisHing odge l odge HigH Point

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property 250 deeded acres with historic 2,402 acres grasslands, CRPwater and rights located The propertyThe comprises 250comprises deeded acres with historic 2,402 acres consisting of consisting grasslands,oftillable CRP tillable and water rights located near Laramie, Wyoming withirrigated 2.5 pivot irrigated lands with an ofabundance water rights located near Laramie, Wyoming with 2.5 pivot lands with an abundance winter of winter miles of trout fishery of located trout fishery on the Little and deep protection, deepprotected draws and protected miles of troutmiles fishery on thelocated Little Laramie and Laramie protection, draws and canyons lyingcanyons lying West Fork Rivers. F West Fork Rivers.

Framed to the the Snowy west by the Snowy along theofsouth side of Hills the Wildcat Hills in western West Fork Rivers.

Framed to the west by along the south side the Wildcat in western Range$3,500,000.

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TRI-STATE LIVESTOCK NEWS | THE FENCE POST

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and what they mean to landowners

Homeland 2016

TRI-STATE LIVESTOCK NEWS | THE FENCE POST

By Kathy Parker

I

n many states, oil and agriculture are the top revenue-producing industries. One needs the land for what is under it, and the other needs the land for what it grows on top.

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O

klahoma has long been in this category. Oil producers and landowners have learned to work together toward this goal. There are advantages and drawbacks on each side, but the arrangement has been a long one.

Oklahoma ranks second in the United States for number of oil wells. Landowners make leases with oil companies to receive a royalty in exchange for placing wells on their property. That is if the property owner maintains his mineral rights. If a landowner does not retain mineral rights on a piece of land, the mineral owner may lease the rights for drilling and things can get complicated - and combative.

Corb Wilson is heir to the Adams Wilson ranch in Nowata County, Oklahoma.

“I own mineral rights on 2,500 acres and we have one section where I don’t own

the rights. I would never consider buying another piece of ground without the mineral rights,” Wilson said.

“It’s (oil contracts) different for everyone,” Wilson said. “We had a good lawyer and he got us a pretty good deal.

“I think most standard contracts give a three-sixteenths royalty on mineral rights of whatever they produce. The company we deal with is probably an exception. They pay a little more than that.

“Especially in this part of the country, companies pump the water from drilling bank in the ground, which in theory produces more oil. Our land use contract with the company says any line must be two feet deep, so if I plowed and hit a line at one foot, the company must clean it up to the owner’s specifications.

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“It’s a full-time job when you have them (the oil company) on your place,” Wilson said.

“But this company has been good for Nowata and is very easy to get along with. I’m all for oil exploration.

It makes the cow business really easy.

“You need a good lawyer and a good land use contract,” Wilson said. This is especially important, because many leases are lifetime as long as the pumps run.

“Most standard contracts say if a pump doesn’t run in 18 months, the landowner gets part of the lease back. Ours is a little better than that. Ours says if a pump doesn’t run at least a full day in a year, we get part of the lease back.” For any well not producing on Wilson’s ranch, he gets 100 acres of the lease back.

“Sometimes that plastic will get around a calf ’s foot and you don’t see it until it swells. I’ve never had a problem with the company paying for cattle damages.

Fort Morgan, Colorado

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Morgan County Realty has other business opportunities available.

28

Morgan County realty 702 Main St. Fort Morgan, Co 80701

Homeland 2016

“Every line they lay, we get $1 a foot, but we try to work with them,” Wilson said. For instance, if the company can lay a line adjacent to a road, the $1 per foot may be waived. This means less cost to the company and less surface damage for the owner.

Sometimes cattle get hurt by the equipment. For instance, the two-inch drilling and casing pipe has a plastic coating on the threaded ends.

Great Cash Flow

Mariel guzMan Broker aSSoCiate Se haBla eSpanol

“Those guys have a tremendous cost to operate.

Sometimes they are drilling and they can tell it (the well) won’t produce, so they just stop and cap it off.

There are twin brothers that drill on our place and they have a good geologist. He can tell by smelling if a well is going to produce.

reed Covelli Broker/owner

970-867-4908 TRI-STATE LIVESTOCK NEWS | THE FENCE POST

“We lost one this spring that got his head stuck in the pump jack. The company paid premium price on that calf.”

It’s a different story if a landowner doesn’t own the mineral rights.

“On that section, they drilled 52 wells mostly at the same time,” Wilson said. “It will ruin the grass. If you don’t own the rights, you get surface damage only. The amount depends on the contract.” Wilson’s contract was $1,500 per well.

“Respect is the key. It increases property value (having wells).

“But I would not touch another piece of land without the mineral rights.”

Oklahoma has a mineral owner registry, which maintains contract, death and inheritance information.

Often people who own mineral rights miss out on payments because companies could not make contact.

In Oklahoma, state agencies are not required by law to keep address information for mineral owners current.

Oil companies use this database for due diligence to make contact for oil and gas leases. If mineral owners cannot be contacted and a company wants to drill, the state will lease the mineral rights for the owner. In this case, the mineral rights owner misses out on the signing bonus and monthly royalty payment.

There are non-attorney companies that search mineral rights, as does the Bureau of Land Management.

OGALLALA’S SOUTH PLATTE RIVER RANCH, K eith County: 7,290+/- acre working cow ranch that includes 5 miles of the South Platte River, 4,325 acres of rangeland, 1,660 acres of sub-irrigated pasture and 900 acres of accretion. Ranch is selling with a 50/50 cow lease in place until 2019. This is an outstanding opportunity to invest in a very well managed ranch with proven history……..…………......……..……$12,999,000 KEYSTONE VALLEY RANCH, K eith County: 1,226+/- acre ranch located on the northern edge of the North Platte River valley 4 miles east of Keystone, NE. Skunk Creek begins on this ranch and flows through to the southern boundary of the hay meadow. This ranch has a tremendous view of the North Platte River valley and minutes from Lake Mac…..………..$1,829,000 BRULE NON-IRRIGATED FARM, K eith County: 214+/- acre non-irrigated farm located 7 miles north of Brule, NE on Road West 120. 82.8% of the soils are very productive Class II Duroc & Keith loams……….………..…………...…….$336,000 GANDY MEADOW & PASTURE, Logan County: 564.10+/- acres located north of Gandy, NE in central Logan County.

This property includes 107 acres sub-irrigated meadow, 455 acres of good sandhill rangelland …………….…………..$620,000 GRAINTON NON-IRRIGATED FARM, Perkins County: 155+/- acre non-irrigated farm located south of Grainton, NE in southeastern Perkins County. Consists of 70% Class III Keith and McCash loams…….………………….……………..$255,000 PAXTON NON-IRRIGATED FARM, K eith County: 278+/- acre non-irrigated farm located 10 miles southwest of Paxton, NE on Road East L South. 65% of the soils are very productive Class II Satanta & Kuma loams.………………...…….$549,000 ROSCOE NEBRASKA FARM, K eith County: 425+/- acres of very good non-irrigated cropland located along Highway 30 1 mile west Roscoe, NE. Soils consist of 94% Class II Bridget and Bayard loams…………….……...……………....….$829,000 WALLACE NE FARM, Lincoln County: 114 +/- acres non-irrigated cropland located southwest of Wallace, NE. Very good soils consisting of 65% Class II soils. Nearly level in terrain and good county road access. …………..…….………..…$205,000 COUNTY LINE CRP, Lincoln County: 149+/- acres of land of which is enrolled into the FSA-Conservation Reserve Program which pays $6,100 annually. Property is located southwest of Wallace, NE with secluded access . Trophy mule deer have been harvested off this property. A potential 4% return on investment..………………………………………….…...…$160,000 HEIDER ISLAND WEST, Lincoln County: The west 334+/- acres located between 2 channels of the North Platte River just 5 miles northwest of Hershey, NE. 99 acre non-irrigated field of grass and alfalfa mix and approximately 2 miles of river frontage. 140 acres of trees for whitetail, turkey, ducks and geese are among the hunting opportunities………………….….$889,000

Nebraska Land Brokers, LLC Duane McClain, Broker / Owner / Auctioneer CALL 3 0 8 . 5 3 2 . L A N D duane@nebraskalandbrokers.com

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A lot of mineral rights money is owed to owners in Oklahoma because they cannot be found; about $53 million in 2013. The highest owed was $329,270 in 2012. Missing owners may claim the money from the state at any time.

If mineral owners can’t be found, states will allow the oil companies to lease land and drill under it with a force pooling arrangement for the proceeds.

Due diligence to look for mineral rights owners requires only sending a letter to the owner’s last known address.

z ACREAGES, FARM & RANCH PROPERTIES

WILDCAT HILLS RANCH: The High Point Ranch includes 2 parcels in and near the beautiful Wildcat Hills. Outstanding headquarters with new heated calving barn, new machine shed, new solar wells, tanks, pipeline, new fences, abundant wildlife, scenic vistas, tree covered hills, lakes, pivot, and more. Parcels are priced separately. Call John 308.641.2352 SCOTTS BLUFF/ GOSHEN CO. PIVOT FARM: 327 Acres located north of Lyman Nebraska. Approx. 180 Acres under a 2009 Reinke pivot, 89 acre irrigated pasture with Horse Creek Pumping Rights, Goshen/Gering Ft. Laramie water right and excellent well! $1,500,000.00 ROBINSON TREE FARM: 16 +/- acres located on southeast corner of Mitchell west of Spring Creek Road. App. 1,200 desirable trees including Colorado blue spruce, Austrian & Scotch pine, juniper, burr oak and more. The property has both Enterprise Irrigation water rights, and a well.

BANNER COUNTY FARM/RANCH: Two sections southwest of Harrisburg, NE., with 810 acres of dryland farm ground and 648 acres of hard grass pasture. Building site has older house, 100’x40’ steel Quonset with concrete floor, old wood barns, and other outbuildings. $715,000.00 MORRILL, NE. PIVOT IRRIGATED FARM: 193 Acres with approximately 180 Acres farmable. 3 Center Pivots, a 6 tower full pivot, and 2 wipers. Farmers Irrigation water rights plus a 1300 Gal. well. Super location, Highway 26 and Liberty Oil Frontage. $730,000.00 GERING COMMERCIAL LISTING: 34.84 ACRES +/- of commercially zoned property has platted Rundell Road turning through the west side of the Property connecting Rundell Road from Gering Industrial Tracts to 4 Lane Highway 71. This Property is prime commercial development property in a very high visibility location! $375,000.00 MITCHELL VALLEY LAND! The Property consists of approximately 45 acres of deeded land, subject to survey, most of which is gravity irrigated crop land, except a high spot which would make an ideal building site, located one mile south of Lyman, NE on Highway 92, then 1.25 miles east on CR H, see sign on Property. $148,500.00 CHECK OUR WEBSITE OFTEN FOR ADDITIONAL AG PROPERTIES!

Helberg and Nuss Nuss Helberg Auctions and & Realty Auctions & Realty 1145 M Street, Gering, NE 69341

Mike Nuss 1145 M Street, Gering, NE 69341 Don Helberg 308.631.0527 308.783.2468and Nuss Helberg AuctionsLICENSED & www.helbergnussauction.com RealtyIN NEBRASKA & WYOMING www.helbergnussauction.com

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TRI-STATE LIVESTOCK NEWS | THE FENCE POST

The initial offer to lease land may come from someone at a land company hired by the oil company. Other times, speculators contact landowners regarding leases. The speculators either attempt to resell the lease to an oil and gas company, or use the lease to participate in any wells already on an unexpired lease.

Although there are some drawbacks to working with an oil company, oil or gas wells on property where the owner retains mineral rights provide a constant source of revenue. The amount may fluctuate, but it is constant. Oil wells on your property also increase the value. At times, that value is great.

“When oil was $100 a barrel, I ran my cows for free,” Wilson said.

In most states, surface rights are secondary to mineral rights. The typical footprint for drilling, completion and production of a well is generally three to 10 acres. Horizontal drilling has reduced the area needed for oil and gas wells because it allows access to minerals under adjacent tracts from a nearby location, thereby minimizing surface damage.

Surface damage clauses can be added to a lease, including surface damage payment. This is to compensate the owner for altered production capacity for timber, crops, pasture, or other above-

ground enterprises. A third party may be needed to appraise the value.

Another common lease clause is no drilling within a certain distance from a house, water well, septic system, barn, pond, or any other place specified by the owner. Consideration of on-site or near-site water sources must be made. Water is required to drill for oil and gas. The owner’s water must be protected.

Land reclamation is an important clause and is sometimes included in the lease itself. This is basically to insure the company will restore land to the original condition as it was before the drilling. The owner should negotiate compensation for current and future losses.

to negotiate the sign-on bonus from the company and royalty payments to compensate for loss of land value in case the owner decides to sell the land.

Rigs on adjacent land may lower property values.

For example in the Colorado boom, land values saw an estimated 15 percent reduction.

Mineral rights account for $2.2 billion of revenue in taxes to Wyoming state and local economies. Wyoming is seventh in oil production, second in gas production and first in helium.

Oil and gas wells can minimize the attractiveness of the land surface. Well water may be affected by shale gas drilling. Property values could decrease due to an unstable supply of clean water. If the minerals are leased under a property, the value will decrease because a buyer can’t get the whole package, but money made from minerals may offset any decreased property value.

Property purchased in Wyoming may not get all the surface and mineral rights. Approximately 11.6 million acres of private land in Wyoming is in a split estate - meaning surface rights are privately owned and the federal government owns the mineral rights. This is the result of the Stock Raising Homestead Act of 1916 signed by President Woodrow Wilson. The act provided a settler could claim one section of nonirrigable land designated by the Secretary of the Interior as “stock raising.”

Before signing a mineral lease, the owner should get an appraisal to find out how much the land will be devalued by adding rigs. These figures should be used

Because mineral exploration was escalating, the federal government opted to maintain the mineral rights. The surface owner has no right to the TRI-STATE LIVESTOCK NEWS | THE FENCE POST

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minerals, which are owned by the government and administered by the Bureau of Land Management.

Minerals include non-chemical items such as sand and rock.

The SRHA was expanded in 1982 to include more materials. The government decided to make those items available for purchase by the landowner. So a farmer or rancher could buy sand or gravel from his own land. The landowner does have the right to develop the land in the manner set out in the Homestead Act, including water resources and infrastructure associated with grazing and raising forage crops.

A decade ago, no one showed much interest in mineral rights in Colorado, but with the advent of deep drilling, things have changed. Past mineral rights sales may not have been recorded, so there can be dozens of owners.

Most Colorado deeds have no reference to the mineral interests. Title companies include an exception saying all mineral interests are excluded and not insured. Mineral title opinions can be accomplished through attorneys.

Factors change from state to state, for instance, the length of leases. Though leases are often long in Oklahoma, the primary term in active areas is usually three years, though they may be as short as six months or as long as five years. In less developed areas, as many as 10 years are still asked for in a primary term. The idea of not locking up the lease is that if the area becomes high-producing, the lease can be renegotiated. Oil and gas areas are known to be high-producing in Oklahoma, so landowners want to lock in the highest rate possible and keep it since they are often assured the production will continue.

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Sheridan Co, NE farm/ranch with 794 acres.

CONFIDENTIAL FARM & RANCH PROPERTIES: Ranches, irrigated farms and feedlots available for offering to prequalified buyers. Irrigated farms in Montana, Wyoming, and Arizona through cooperative brokerage agreements.

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NICK ZERR, Sales Associate (785) 673-6424 Gove, KS For more information: www.nelandcattle.com Licensed in Nebraska - Kansas - South Dakota

TRI-STATE LIVESTOCK NEWS | THE FENCE POST

In general, if a lessee starts drilling a producing well during the primary term, the lease rights will be extended into a secondary term, which will continue for as long as there is production in paying quantities from the leased premises.

This accounts for lifetime leases in Oklahoma. Conversely, it can account for leases, which do not extend past the primary term in other states.

Whatever a landowner decides to do in regard to mineral rights, it would be prudent to do research and get the help of individuals or companies familiar with mineral rights in that state.

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Sunset Ranch Property

22880 Gateway Drive, Box Elder, South Dakota Great horse property in the beautiful Sunset Ranch complete w/ over 2700 sq ft of living space, 2 car attached garage, large shop/barn, corrals, garden area & cross fenced pastures all on 12 acres! The shop/barn, a quality Cleary building, measures 64x42 & offers a huge shop in the front & barn in the back, all connected to the corrals & pasture, complete w/ a tack area & large overhead doors all around. Built in 2007, the charming country home greets you via its covered porch, offering an open design w/ 4 bedrooms, 21/2 bathrooms, top of the line stainless steel kitchen appliances, gas fireplace & sliding glass doors to a spacious back deck.

See www.bhmls.com MLS#130073 for more pictures and information. Call Sherrie today to view this property

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$499,000

155 Prime Acres

Minutes from Sturgis, South Dakota With a view of Bear Butte in your front yard, this acreage is a horse-lover’s dream! Excellent for development with good roads and electricity available on two sides and new rural water system recently completed with water running to the center of the acreage. A well-established tree belt runs along the property on the north, west and east sides.

The perfect set-up for a building site, this 155-acre piece has unlimited potential. Build your horse property here or use it as investment acreage for Sturgis Rally business. Seller offers multiple flexible options: will sell in one piece or will subdivide, can work with buyer on building to suit needs as well. All mineral and surface rights available.

Located 12 Miles East of Buffalo Chip on Hwy 34 to 142nd Ave. North on 142nd Ave. 1.5 Miles.

See www.bhmls.com MLS#127999 for more pictures and information.

Call Sherrie today to view this property

605.415.6752 • snutter@landbrokersne.com

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“The FCC’s proposed price regulation for business broadband will have a major impact on available revenue in rural markets – as much as $1.4 billion or more,” said James E. Prieger, former Federal Communications Commission (FCC) economist and Professor of Economics and Public Policy at the Pepperdine University School of Public Policy.

PHOTO BY AMANDA RADKE

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TRI-STATE LIVESTOCK NEWS | THE FENCE POST

S taying

connected

in rural America

M

By Amanda Radke

illennial rancher Karoline Rose waits patiently while a website design she created loads onto the internet. Her home in Toston, Mont. doesn’t have a broadband service provider, so she’s using her Verizon hotspot — a costly business expense she can’t afford not to use.

Rose is the owner of KRose Company, where she works as a cattle procurement officer in seven sale barns, as well as runs marketing campaigns for several ranches and small businesses in the area. Her business focuses on logo design, website design, sale preparation, social media, advertisements and getting her clients connected with new customers.

KAROLINE ROSE (COURTESY PHOTO)

Forced to rely on a Verizon hot spot for high-speed service, Rose pays nearly $300 each month for extra gigs in order to procure cattle and run her marketing company.

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“My business relies on good service,” said Rose.

“Not only do we need to watch video sales on the computer, which requires phenomenal internet, but we also do website and logo design and maintain social media accounts online, which require internet.

A ton of time is spent using the internet to reach our ideal customer. Additionally, the KRose Company has a team of employees, and we get online frequently to have team meetings.”

Rose is one of many in rural America who need to stay connected through high-speed broadband internet access in order to be successful in their businesses. Since she’s unable to get connected at her home, she often drives to her family’s ranch — KRose Cattle Company — to use the family internet plan.

“I’m spending $250-300/month on my Verizon hot spot, and that’s with me using it very conservatively,” she said. “My other option is to use the ranch con-

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TRI-STATE LIVESTOCK NEWS | THE FENCE POST

nection, but we are using 50 gigs as a family, and the service is very slow. I can also drive 30 miles to town to work there, where I have access to much faster wireless.”

Her frustrations grow as her internet lags, making her job a slow process and impeding her from serving her customers as quickly as she would like. Consistent access to high-speed rural broadband would allow her to be more efficient and productive and, as a result, would allow her business to grow.

“If we had viable internet service, it would take our business to the next level,” she said. “We would be able to connect with our customers better and respond to things quicker. We heavily rely on instant communication in this day and age, and if we could find a way to improve rural internet access, we would be able to live our life more by our design.”

LACEY CAFFEE (COURTESY PHOTO)

Caffee spends hours uploading photos and videos for her customers, and without high-speed internet access, her ability to efficiently deliver her services is greatly hindered.

Born & Raised in

Agriculture...

Lacey Caffee, of Wessington Springs, S.D., is another millennial working in the agricultural industry. She owns LC Promotions, a livestock videography, photography and promotional business that takes her to remote pastures across the country, where she works to promote upcoming cattle sales and events.

slow and times out, then I have to start all over again. I pay for a faster internet connection at my house. My biggest struggle is when I’m uploading videos in hotels when I’m traveling for work. Many times the internet is slow, and I’m approaching deadlines, and it makes it hard to get files in on time.”

“I use the internet every day whether it’s on my phone, or uploading pictures, videos or graphics to be printed,” said Caffee. “I need to be able to upload pictures and videos quickly, so my clients can have them right away. If the internet is

Caffee often plans her workdays around locations she knows will have high-speed internet access available for her to get her job done. Otherwise, accomplishing her tasks in a timely fashion becomes quite cumbersome.

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“Usually, I have to plan to be home or somewhere that I know I can upload my videos,” she said.

“It would be great if the internet offered was better. Our phones and computers have surpassed what is offered by internet companies and using data from a cell provider is often faster than the internet in a lot of places.”

Ranchers trying to buy cattle via video auction, schools trying to use multi-media platforms in their classrooms, small businesses attempting to run online websites, local banks allowing for digital banking — small communities in rural areas are greatly impacted by low-performing internet access and are at a great disadvantage because of these limitations, compared to people in urban areas who enjoy high-speed internet access. This digital divide is of great concern to many in rural communities,

particularly in light of proposed regulation that would further cripple rural broadband access.

James E. Prieger, former Federal Communications Commission (FCC) economist and Professor of Economics and Public Policy at the Pepperdine University School of Public Policy, has spent years working in the telecommunications industry and is concerned aboutt the FCC’s proposed changes that would be a detriment to broadband access and business data services in rural communities.

“Business data services are vitally important to the economic health of businesses and other users, rural regions, and the national economy,” said Prieger. “The FCC has stated that promoting investment in business data services is one of its core goals. Despite that claimed intention, the FCC has

proposed potentially drastic rate cuts to be imposed on business data services provided in areas the Commission perceives to be ‘noncompetitive,’ which are largely rural areas.”

Consequently, the regulations have the potential to destroy the investments, cripple maintenance of existing broadband companies, and deplete future service and expansion of high-speed internet in rural communities. Prieger says that for each dollar of investment discouraged by regulation costs the economy up to three dollars in lost output.

“The FCC’s proposed price regulation for business broadband will have a major impact on available revenue in rural markets – as much as $1.4 billion or more,” said Prieger. “The lost opportunities for revenue will lead to less broadband investment for

Land for Sale Kit Carson County Dryland

Lincoln County, CO

Dundy County, NE

1,440 +/- Acres, Very Productive Dryland, Primariy Class III Soils, subject to 1/3 - 2/3 Lease, Buyer shall receive 1/3 growing crop, excellent crop base, no mineral rights available. $2,232,000 ($1,550/ac)

3,650+/- Acres - Cropland, 2/3 Growing crop to buyer; 2,221 acres 2016/2017 growing wheat, curently insured at 70% level. Seller Reserves 50% of Owned Minerals. Taxes at $5,743.32. $3,249,500 ($890/ac)

Irrigated, dryland & grass. 315.64+/- Acres, 155+/- acres Irrigated (120 ac. under Pivot), 34.23+/- acres Dryland, 93+/- acres Grass, Pioneer Ditch 32” Annual, 2015 Taxes: $2250.16 $900,000 ($2,851/ac)

VIRGIL GEORGE • employing Broker

1510 Rose Avenue • Burlington, CO 80807 Ph: 719-346-5420 | M: 719-346-1966 Fax: 719-346-5186 | www.rxl.co

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TRI-STATE LIVESTOCK NEWS | THE FENCE POST

“

“The FCC’s proposed price regulation for business broadband will have a major impact on available revenue in rural markets – as much as $1.4 billion or more,” said Prieger.

the communities that need it most – slowing deployment and hurting economies that need help competing.”

Prieger, and others who understand the importance of connectivity in rural America, are working to stop the regulation from passing by voicing their concerns and explaining to the FCC how detrimental this legislation would be to rural communities.

economy 1.4 to 3.6 jobs, half of which would have come from small business. While some proponents of regulation claim that imposing price regulation on business broadband would promote 5G wireless networks, price regulation is a step in exactly the wrong direction. Everything possible should be done to encourage investment in business broadband capacity to support the growth of next-generation mobile wireless networks.”

“Using regulation to destroy the returns to an economic activity the FCC states it wants to encourage makes little sense,” said Prieger. “Do not tax what you want to encourage. There will be several detrimental impacts from the forgone investment. Rural businesses will lose out on potential productivity enhancements. Each job lost from the lack of investment costs the

For rural community members who are paying astronomical fees to obtain high-speed internet, at first glance, the proposed legislation sounds like a good idea. After all, who wouldn’t want a price cap on a business expense? However, the proposed regulation has a domino effect, with the bulk of the damage falling squarely on small businesses in rural America.

PERFECT WYOMING HOUSE ON THE PRAIRIE.

36.08 acres, including mineral rights, no covenants, 23 miles southeast of Cheyenne, near the Colorado border. House built in 2006, newer metal roof, backup generator, natural gas, 2 concrete floor 32x24 outbuildings, fenced and cross fenced. Additional adjoining 80 acres also available to purchase. $350,000

Cathy Anderson cell: 307-214-0687 email: canderson@propertyex.com Coldwell Banker The Property Exchange Each office is independently owned and operated

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Only by communicating with elected officials about the potential devastating issues these proposed regulations could cause will the FCC be persuaded to rethink their current course of action.

Horse Barn Bunkhouse Roping Arena

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Located near Ft. Lupton, this horse lovers property has 4 bedrooms and 6 baths with amazing views of the front range, along with fabulous livestock amenities. Call now to arrange your private showing.

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“Given the huge potential impacts of the proposed price regulation of business data services— billions in lost revenue for providers, curtailed investment by incumbents and competitors, forgone economic benefits for business, workers, and rural economies—it is important to craft regulation carefully in a fully informed manner,” said Prieger. “The FCC seems bent on pursuing the opposite course. After a regulatory proceeding dragging on for years, now all of a sudden the FCC is rushing to push through new regulation without giving adequate time to study the likely effects. The FCC should pause long enough to consider the consequences of the proposed regulation, allow industry and other interested parties sufficient time to investigate the repercussions, and make a wise choice.”

Rural America wants to compete, and in order to thrive, high-speed broadband internet access must be readily available; only by communicating with elected officials about the potential devastating issues these proposed regulations could cause will the FCC be persuaded to rethink their current course of action.

Sioux County Ranch Don’t miss this amazing 400 head cattle Ranch on 7,293.32 acres m/l.

Approximately 17 miles North of Henry, Nebraska. 128 acres Lockwood pivot fed with well and planted in Alfalfa, 80 acres CRP & 11 acres in Corners for Wildlife. Submersible well with over 9 miles of pipeline. 942 acres dry land farm ground. Over $225,000 per year in CRP & NPNRD payments with a contract thru 2025 included. The Ranch has quality Mule Deer and Antelope hunting as well as over two miles of Sheep Creek along the West side that spreads out into hay meadows. This ranch includes two 60x48 Morton buildings, a hunting cabin and two single wide mobile homes. This beautiful ranch is ready for a new owner!

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Homeland 2016

TRI-STATE LIVESTOCK NEWS | THE FENCE POST

Scottsbluff 160 acres on a paved road 9 miles N of SB includes 92 acres of crop land watered by 100 shares of Pathfinder Irrigation District, 60 acres of dry pasture and 8 acres of house site. 18+ acres were planted to grass in 2015. New owners could pasture, cut hay or crop lease this field for additional income.

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Since 1980, The Fence Post has been revered as a trusted source for ag news and information. We don’t cover a certain city, county or geography. Rather we celebrate the farming and ranching culture, our western way of life, and the great folks within it. Our unique content spans from livestock production and grain farming to ag legislation and water policies, to stories about the region’s ranchers, farmers, and events in our ag community. You’ll also find regular comics, columnists, obituaries and the auction and event calendars in March 10-13, 2016 every issue. So, grab a cup of coffee and settle in to enjoy this week’s issue. And thanks for reading us!

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NAVIGATING the retirement

maze

By Rhonda Sedgwick Stearns

M

any farmers, ranchers and others involved in agriculture are self-employed. Their retirement account grows by photosynthesis. As farmers and ranchers approach retirement age, they’re faced with some pretty tough decisions about how to go about retiring.

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Danielle Kurtzleben, US News & World Report staff writer wrote, “Everyone knows American workers are aging, but farmers are longer in the tooth than workers in almost any other occupation. According to the Labor Department, the median age for farmers and ranchers is 55.9 years…” During the last three decades, “…the average age of U.S.

TRI-STATE LIVESTOCK NEWS | THE FENCE POST

farmers has grown by nearly eight years, from 50.5 years to 58.3 years.”

The traditional lifestyles of self-employed agriculturalists often neglect planning for retirement. According to FORBES article “The Retirement Crisis” by Laura Shin, published in April 2015, “The self-employed can establish retirement plans for themselves, such as the solo 401(k), the simplified employee pension plan, or SEP, IRA, and the SIMPLE-IRA. But in 2011, this group had the lowest participation rates — 13 percent, compared to 83 percent of workers in public administration.”

How can these aging owner/operators parlay their real estate into a secure retirement?

PHOTOS BY JULIE PEDERSON

If a real estate sale is going to produce enough revenue to provide a comfortable retirement, the U.S. government will want a healthy share.

Planning ahead can help keep more of those dollars in your pocket, and the local economy.

Estate planning walks hand-in-hand with real estate liquidation, and Julie Pedersen, Associate Broker/Owner and founding member of Arnold Realty, Inc. (http://www.eranches. com/) at Newcastle, Wyoming says, “Decide what your goals are and then assemble a good team of professionals to assist in the process.

Your attorney, accountant and investment manager need to work in conjunction to create the plan that best fits your needs, while minimizing estate taxes. When selling property, you need to consult with your accountant right up front, when you list the property for sale,” she adds. “Don’t wait until you have a signed purchase contract to figure out how much capital gains tax you will have to pay. Discuss the options with your accountant and convey that information to your real estate broker, so everyone is on the same page from the beginning.

“For instance, if you plan to purchase other property, you may be able to delay capital gains by using a 1031 Tax Deferred Exchange,” Julie explains. “Or if your principal residence is on the land you are selling you may be able

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to exempt the residence portion of the sale up to a certain amount and take those funds tax free. If your sale includes machinery or livestock, that adds yet another component. Planning ahead is key to minimizing taxes.”

Lease Option Part of that planning entails choosing from a variety of sale possibilities, one of which is a lease with an option to purchase – also known as a “lease option.”

It may appeal to sellers, who can benefit from market appreciation if the tenant does not exercise his option to purchase.

Donald J. Valachi, CCIM, CPA, associate clinical professor of real estate at the University of Southern California says, “The important income tax question in leaseoption transactions is whether the tenant is leasing the property or, as an economic reality, an installment sale has occurred prior to the tenant exercising the purchase

Turning real estate into retirement can be a difficult and emotionallycharged task.

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TRI-STATE LIVESTOCK NEWS | THE FENCE POST

option. No single factor determines whether or not a lease option is, in economic reality, a sale.”

Gerald J. Robinson, a noted tax authority, said in Federal Income Taxation of Real Estate, “A determination involves studying many factors, including the terms of the lease, the surrounding economic circumstances, and the intent of the parties . . . A collection of telltale signs leads to the conclusion that exercise of the option was virtually certain from the outset, so that treating the entire transaction as a sale is warranted.”

Donald Valachi explains, “If a lease option is treated as a sale, there are two important tax implications: 1.The timing of the transfer of ownership of the property is changed. With a “true” lease option, ownership transfers when the option is exercised. If

the transaction is treated as a sale, then ownership transfers when the parties execute the original agreement. 2. The nature of the option payment and the rent payments during the lease period are changed. Because the tax treatment of a purchase transaction is so different from a lease transaction, it is important to understand the factors that may lead the Internal Revenue Service (IRS) to characterize a lease-option transaction as a sale.”

Michael P. Sampson says in Tax Guide for Residential Real Estate: “...if you can demonstrate that the reason for the lease option is the impossibility of a cash sale because of economic conditions, the form of the transaction as a lease option will probably stand. This would be the case, for instance, where your purpose is to tie down the property during a tight money

market, with the expectation that within the option period you can get institutional financing.”

“Although the lease option is a valuable strategy in many situations, it should be used with great care,” warns Valachi. “There is always a threat that the IRS may view the lease-option transaction as a sale and the lease as merely a financing device. Rents that are significantly above fair market rents, when combined with a ‘bargain’ option price, indicate that the transaction is likely to be characterized as a sale and that the rental payments are, in fact, installment payments on the purchase price. Thus, both the rental payments and the option price should be set by the parties with reference to going market values and rents for similar properties.

And the parties should be prepared to justify their estimates

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It’s important to know your goals and expectations for your retirement when you start to liquidate assets.

of rent and purchase price if the transaction is later challenged by the IRS. Rental value and property value are best established through independent appraisal by experts,” Valachi advises.

Contract for deed Multiplying the confusion is yet another sale option – “contract for deed.” It can allow the seller to get more down payment from the buyer and the seller can also collect interest payments,

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often more than could be collected in rent. However, the 1031 tax-deferred exchange cannot be used on a property sold by contract for deed when the buyer pays off the debt balance.

Crystal Myslajek, Community Affairs Intern with Federal Reserve Bank of Minneapolis wrote in January 2009, “While contracts for deed offer some advantages over a traditional mortgage, such as speed and simplicity, they can entail distinct risks for buyers and sellers.”

TRI-STATE LIVESTOCK NEWS | THE FENCE POST

“A contract for deed, also known as a ‘bond for deed,’ ‘land contract,’ or ‘installment land contract,’ is a transaction in which the seller finances the sale of his or her own property,” Myslajek explains. “In a contract for deed sale, the buyer agrees to pay the purchase price of the property in monthly installments. The buyer immediately takes possession of the property, often paying little or nothing down, while the seller retains the legal title to the property until the contract is fulfilled.

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Three miles north of Sedalia, 414.28 acres, 497 acre feet of water rights with 4 wells. High-quality, 18 stall, 7,685-square-foot horse barn with two caretaker’s houses, each 1,952 square feet. Used for horse boarding and polo horse training area, offers a host of possibilities for usage as an equestrian property with several building sites, conservation easement candidate, or prime re-development. $10,000,000

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A legacy property in Evergreen near Denver. Absolute privacy 19.25 acres, two sides bordering national forest.

Impeccable architecture and craftsmanship, reclaimed timbers and dimensional wood, hand cut moss rock imported, and hand-forged custom ironwork throughout. Done in an authentic mountain-rustic style. 6,455 square foot house with 1,381 square foot attached garage, 1,875 square foot shop/RV garage and 1,000 square foot gym/studio. $6,800,000

The buyer has the right of occupancy and, in states like Minnesota, the right to claim a homestead property tax exemption. The buyer finances the purchase with assistance from the seller, who retains a security in the property.

“In a typical contract for deed, there are no origination fees, formal applications, or high closing and settlement costs. Another important feature of a contract for deed is that seizure of the property

LOVELAND COUNTRY HOME COLORADO, LARIMER COUNTY, LOVELAND

Near the foothills, this private 35-acre property has a 3-story country home with 4,865 square feet of living space and a 1,135-square-foot, attached 4-car garage with shop. Landscaping includes a sprinkler system, wraparound decks, swimming pool, hot tub and entertaining/barbecue area. The nicely appointed and spacious 5-bedroom, 5-bathroom home includes a lower-level recreation room and bar. The property has a 7-stall horse barn that can be converted to alternate uses, storage barn, livestock shelters and is cross-fenced for separate turnout pastures with underground water lines to all. $1,400,000

THE WEST IS OUR HERITAGE. MAKE IT YOURS. RON MORRIS • 970.535.0881 • RON@RMABROKERS.COM RMABROKERS.COM TRI-STATE LIVESTOCK NEWS | THE FENCE POST

Homeland 2016

47

in the event of a default is generally faster and less expensive than seizure in the case of a traditional mortgage,” Mysaljek says. “If the buyer defaults on payments in a typical contract for deed, the seller may cancel the contract, resume possession of the property, and keep previous installments paid by the buyer as liquidated damages. Under these circumstances, the seller can reclaim the property without a foreclosure sale or judicial action. However, laws governing the contract-cancellation process differ from jurisdiction to jurisdiction and the outcome may vary within any one state, depending on the contract terms and the facts of the specific case.”

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WISE USE OF A 1031 EXCHANGE CAN ENABLE RETIRING RANCHERS AND FARMERS TO SWAP A LABOR-INTENSIVE INCOME-PRODUCING PROPERTY FOR A PIECE OF INCOME-PRODUCING PROPERTY THAT MAY NOT REQUIRE QUITE AS MUCH PHYSICAL INPUT.

1031 Exchange Then there’s the popular 1031 Exchange. The large firm of Chas.

H. Middleton & Son dealing in farm and ranch real estate since

TRI-STATE LIVESTOCK NEWS | THE FENCE POST

1920 across Texas, New Mexico, Oklahoma, Kansas and Colorado reports,”... over 50 percent of the transactions we handle involve a 1031 either on the side of the seller, the buyer, or both.” Middleton calls the process “fairly simple”

but highlights specific time constraints that must be met to qualify, saying “The 45/180 day rule as it has become known sets the limits involved.”

Sherrie Nutter, of the Rapid City, South Dakota office of Land Brokers, Inc. explains, “The timeline for doing a 1031 Exchange is probably one of the most important factors to consider, so thoughtful preparation is key.

First, you must identify your replacement real estate within 45 days; then close your purchase of it within180 days after closing your original sale. Considering the magni-

tude of what you potentially may be selling and purchasing, this timeline is really very short.”

“Before you begin your sales process it’s imperative to know what replacement real estate you’re looking for, and in what area,” Nutter recommends. “Also remember that your replacement real estate must be a like property

(i.e. incomeproducing) and of equal or greater value than what you are selling in order to defer 100 percent of your taxable capital gain.”

The devil is in the details of 1031 transactions, as Middleton & Son explain, “It is important to know that taking control of

TRI-STATE LIVESTOCK NEWS | THE FENCE POST

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49

Selling Land, Equipment, and more across the Nebraska panhandle and beyond!

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Excellent Dryland Farm, Contiguous, Quality Land, $1,150 per Acre!

Quality Irrigated Farm in Scotts Bluff County, Nebr. 75 acres, 40 acres of 3 yr. old alfalfa. Pivot Potential.

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160 Acres +/- Cheyenne County Nebr.

Organic Farm & Hunting Land. 24.5 acres former CRP Plus CRP Trees. 99 Acres Cultivated $98,500 158 Acres +/- Cheyenne County Certified Organic Farm w/ 82.71 acres grass (retired CRP). Cultivated for 2017 Crop. CRP Trees. $79,250

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Homeland 2016

DOUBLE DIAMOND RANCH

HINEBAUCH FARM

FLASTED HOME RANCH

Billings, Yellowstone & Musselshell Counties, Montana Productive 9,650± contiguous acres in beautiful, private setting.

715± deeded acres. 380± irrigated acres. Nice set of improvements with 3 bedroom home, remodeled horse barn, shop and 4,000 head feedlot.

Alzada, Carter County, Montana Crook County, Wyoming 8,500± total contiguous acres; 6,745± deeded, 1,755 BLM lease acres. 345 acres of hay land. Ample water throughout. Modest, functional set of improvements.

Contact Denver Gilbert at (406) 697-3961 or Cory Clark at (307) 334-2025

Contact Denver Gilbert at (406) 697-3961 or Mark McNamee at (307) 760-9510

Contact Ron Ensz at (605) 210-0337 or Mark McNamee at (307) 467-5523

$6,000,000

TRI-STATE LIVESTOCK NEWS | THE FENCE POST

Kinsey, Custer County, Montana

$1,950,000

$4,050,000

cash or other proceeds before the exchange is complete may disqualify the entire transaction from like-kind exchange treatment and make ALL gain immediately taxable. One way to avoid premature receipt of cash or other proceeds is to use a qualified intermediary or other exchange facilitator to hold those proceeds until the exchange is complete.”

The rules underline the necessity for that, as Middleton warns, “You cannot act as your own facilitator. In addition, your agent (including your real estate agent or broker, investment banker or broker, accountant, attorney, employee or anyone who has worked for you in those capacities within the previous two years) cannot act as your facilitator.”

Sherrie Nutter recommends, “Knowing what professional help you need will ensure greater success.

You can think of it as your ‘1031 Team’ – your real estate broker, your accountant, potentially an attorney (depending on the complexity), the title company and an exchange company that will serve as the intermediary or facilitator of your funds until everything is complete and ensure that the monies are handled appropriately to meet all the IRS guidelines. We are fortunate that our Rapid City title companies have affiliate exchange companies that can serve as intermediaries, making it possible for us to build a big part of your 1031 Team under one roof.”

J.D. Hewitt, owner of Hewitt Land Company in South Dakota said, “In addition to following the proper procedure, there are several related factors to consider in contemplating an exchange such as investment goals, timing/duration of investment, type of property (income producing or property held for sale), suitability and use, management, rate of return vs. risk exposure, level of debt to be included and debt serviceability.

These are some of the factors a competent real estate professional can help you work through.

Keep in mind that not every real estate investment is right for every individual.”

TRI-STATE LIVESTOCK NEWS | THE FENCE POST

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Agri - Enterprises, Inc. has been marketing primarily agricultural properties along the Front Range, Eastern Colorado and Western Nebraska since 1982. Les Gelvin became owner and managing broker in 1995.

Based in Fort Collins, CO (60 miles north of Denver) we have brokers throughout the regions.

• Farms • Ranches Agri - Enterprises, Inc. has been marketing primarily agricultural properties along the Front • Water Rights Range, Eastern Colorado and Western Nebraska since 1982. Les Gelvin became owner and • Feedlots managing broker in 1995. Based in Fort Collins, CO (60 miles north of Denver).

• Dairies • Development• Properties Farms • 1031 Exchanges • Ranches • Water Rights • Horse Properties • Acreages • Feedlots • Dairies • Consultations • Development Properties • Rural Area Residence • 1031 Exchanges • Agri Business

• Horse Properties • Acreages Land, Water, and Ag Real Estate Professionals you can count on.

• Consultations - our Brokers• are all currently involved in farm & ranch operations and have been for many years Rural Area Residence - combined Real Estate marketing experience of well over 105 years • Agri Business

Land, Water, and Realrural Estate Professionals yourights can in count on. Wyoming, and Our agency has been marketing farm,Ag ranch, properties, and water Colorado, - our Brokers are all currently involved in farm & ranch operations and have been for many years Nebraska since 1982 - combined Real Estate marketing experience of well over 105 years

We have buyers are rural actively seeking listings!

Our agency has been marketing farm, and ranch, properties, and water rights in Colorado, Wyoming, and Nebraska since 1982 For Personalized service, thorough knowledge and fair business practices we are the Real Estate

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For Personalized service, thorough knowledge and fair business practices we are the www.agrienterprises.com Real Estate Professionals thatFarms should be working for •you market your Property.

Buying & Selling • Ranches • Water Rights Ruralto Properties

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TRI-STATE LIVESTOCK NEWS | THE FENCE POST

JOHNSTOWN, CO: 130 units of CBT +/- 111 acres, 6037 Highway 60 Johnstown, Colorado. Property is annexed to the Town of Johnstown. Modest improvements including 2 homes. 11 shares of Home Supply Water, and associated lateral and/or running rights, Les or Greg $6,700,000

MILLIKEN, CO: 50 UNITS OF CBT WATER +/- 78 acres on the west side of Milliken Colorado bounded

by County Road 46 on the south and County Road 46 1/2 on the north. Property is annexed to the Town of Milliken. 1.5 shares of Hillsborough Ditch Company and associated lateral and/or running rights. Les or Greg $2,785,000 KEOTA & GROVER: 5800 +/- ACRES GRASS PASTURE NORTH WELD COUNTY, BETWEEN KEOTA AND GROVER. Fenced, cross fenced, improvements include a 3 bedroom 2 bath modular home, outbuildings, nice working facilities, +/- 160 acres of use pasture, no oil and gas rights available, excellent county road access. Good stock water distribution with wells, pipelines, numerous tanks and seasonal pond. Possible lease back on all or part. Les or Greg 970-221-2607 $2,969,000 YUMA COUNTY, CO: BEAUTIFUL PRODUCTIVE RANCH - 1744 +/- ACRES 17 MILES SE OF WRAY, YUMA COUNTY, CO - 347+/- acres pivot irrigated 60+/- acres dry farm – balance (approximately 1300 acres) grass pasture. Wildlife abounds. Corrals and modest buildings -Three irrigation wells tied to the oldest water right on Dry Willow Creek, tributary to the Arikaree River. Where the big deer are. 2015 Taxes: $2475. Call Les 970-214-6139. Asking price: $2,850,000

www.agrienterprises.com Buying & Selling Farms • Ranches • Water Rights • Rural Properties

TRI-STATE LIVESTOCK NEWS | THE FENCE POST

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53

JUST GEOGRAPHY Location may have little effect on commodity prices these days

Your Source for Ag Financing • Long-term Fixed Rates • IronCountry Equipment Financing • FSA Guaranteed Real Estate Loans • Real Estate Revolving Line of Credit

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meland Magazine 10_16.indd 1

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TRI-STATE LIVESTOCK NEWS | THE FENCE POST

11/2/2016 12:45:31 PM

By Danielle Schlegel

N

ot long ago, the region of the country in which agriculturalists produced largely impacted the price of their commodities sold. Thanks to technology and a sophisticated transportation infrastructure, the U.S. now sees negligible differences in commodity prices due to regional differences.

Price fluctuation due to regional location has been removed as a driving force in commodity process, said John Nalivka, president of Sterling Marketing, Inc. based in Vale, Oregon.

However, Dr. Derrell Peel, professor of agribusiness and extension livestock marketing specialist at Oklahoma State University, noted that there is a linear relation to cattle prices associated with transportation relative to Nebraska. In sum, Peel said, the highest average feeder cattle prices in the country are in Nebraska.

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“Feeder cattle prices basically decline in all directions from Nebraska,” Peel said. “It is very much tied to distance and transportation because most cattle tend to move to the middle of the country where the feedlots are. When you look at Georgia or Alabama or Florida, relatively speaking, you are going to see the bigger discounts because those cattle ship the farthest.”

Peel and his students observed this trend over the course of five years focusing on the parameters of region, season, and weight class. As a result, they found a trend that is quite predictable.

“Nebraska tends to be the peak [of feeder cattle prices], and, basically, you can almost think of it as a bull’s-eye,” Peel summarized. “You can draw big circles around [Nebraska] as feeder cattle prices decline from that peak.”

Considering all factors that go into price, however, Nalivka

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June Lemmings

Giles Realty, LLC/Metro Brokers

Cell: 970-388-3692

Cell: 970-302-2367

3835 W. 10th Street, Suite 100J, Greeley

Broker Associate/Partner Office: 970-330-7700

June@SearsRealEstate.com www.BestColoradoHome.com

12995 N County Road 5 Wellington, 80549

Email: Rhondacrs@msn.com Web: www.gilesrealtyllc.com

TRI-STATE LIVESTOCK NEWS | THE FENCE POST

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JUST GEOGRAPHY largely credits price variations to other factors outside of transportation costs and regional origin.

“Bottom line is that if you can move a product from point A to point B, the price difference between regions is often negligible.”

“As the industry becomes more consumer-oriented, the finished product and carcass quality are obviously a big driving factor,” Nalivka said. “In order to produce a product that has the greatest consumer acceptance, the packer has to buy the kind of cattle that will meet that standard.”

“Bottom line is that if you can move a product from point A to point B, the price difference between regions is often negligible,” Nalivka added. “The U.S. has the JOHN NALIVKA, most sophisticated distribution PRESIDENT OF STERLING MARKETING, INC. and transportation network in the world, and that allows us to move stuff around to meet supply The problem that conand demand for the end consumcerns Nalivka most is the er. One way or another you are inefficiencies that regulagoing to discount the price or add on the freight cost. tions create for the transportation, distribution, or It all comes out in the wash.” production systems.

Navlika also noted that technology has eliminated the issue of time zone differences impacting the markets sold and is no longer a factor in the price equation.

“I deal with companies that are buying and selling protein on a daily basis,” Nalivka said. “It’s more about logistics than time zone.”

The logistics that most impact the bottom dollar on commodities, Nalivka noted, include factors such as trends towards consumer-oriented demands and regulations Using the cattle industry as an example, Nalivka said that cattle prices and variation could have as much to do with the kind and quality of cattle as it does the regional origin within the country.

“Regulations, be it taxes or environmental or what have you, is the constant challenge because they can distort the entire efficiency of a system,” Nalivka said.

“You watch the people in an industry respond to a new regulation by working towards getting around that to regain efficiency, and then the next regulation comes along about the time they work through the first one.”

Largely, agriculture commodities are produced wherever a producer has the greatest competitive advantage, which is the result of a culmination of factors including the environment, weather, local markets, regulations, and taxes. Taxes, Nalivka said, can play a big role in the bottom dollar whether is due to regional land value, state income taxes, or conservation easements, regardless of the specific commodity produced.

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TRI-STATE LIVESTOCK NEWS | THE FENCE POST

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Commodities fluctuate; it’s the nature of the business that everyone involved is well aware of. Nalivka credits the expansive transportation infrastructure within the U.S. as a key component to the longevity of producers, regardless of geographical location. It may not always be perfect, but it does cut down on the geographical limitations that affected the U.S. agriculture industry in the past.

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TRI-STATE LIVESTOCK NEWS | THE FENCE POST

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A DV E R T O R I A L

Hewitt Land Company

Has A Handle On The 1031 Exchange

By Amanda Radke

W

hen rancher JD Hewitt and his wife Julie walked into Walt Simon’s real estate office in Sturgis, S.D. in 1999 to acquire a ranch, they didn’t realize they would soon be in the real estate business.

“Real estate wasn’t on our radar at the time,” said JD Hewitt, owner of Hewitt Land Company. “We went into Walt’s office to buy a farm property, and he offered to sell us his real estate brokerage business.

We bought two-thirds interest and worked with Walt until 2004 when we assumed full ownership.”

The real estate business was a perfect fit for Hewitt, who studied agricultural economics at South Dakota State University and worked as an agricultural lender while running cattle. With deep roots in ranching, farming and banking, Hewitt was able to provide valuable insights to his clients, and he’s helped farmers and ranchers buy and sell irrigated farms of 450 acres to sprawling ranches of 45,000 acres.

“Agricultural real estate is our bread and butter,” said Hewitt. “I have a passion for it, and because of our understanding of the agricultural industry, we can better assist our clients in making these transactions.”

Hewitt has slowly phased out of the cattle business to focus on Hewitt Land Company, which is based out of Piedmont, with a second office in Pierre, managed by Dan Todd with his private law practice, and he’s welcomed two sons into the business, as well.

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Tyson and Tanner Hewitt work as broker associates for the company, while also maintaining their own ranching enterprises at home.

Hewitt Land Company specializes in the sale, by both private treaty and auction, of agricultural properties in South Dakota, North Dakota, Wyoming, Nebraska, and Montana, and they are well-versed in handling the IRC 1031 Tax Deferred Exchange.

“This provision in the tax code allows folks the opportunity to trade property for other ‘like’ properties,” said Hewitt. “The interpretation of this is pretty broad, and there are a lot of factors to consider such as management needed, heir issues, retirement plans, investment goals, timing, type of property, rate of return, risks and debt to be carried on the property.”

Hewitt Land Company goes through the list of “what if ” scenarios to determine the best fit for the individual.

“By far, the majority of our business involves a tax deferred exchange on one or both sides of the transaction,” said Hewitt. “We have extensive experience in this area and work hard to find the right kind of property to fit the individual’s investment objectives.

These properties often aren’t widely advertised or on the open market, so helping people find what they are looking for is kind of a niche for us.”

“In a lot of these ranching transactions where property has been held for several generations, the

gain in value can be immense and you’re exposed to a capital gains tax rate, at present, of 23.82%, on anything over $250,000 in gains, however up to a half million dollars for a couple, for a primary residence, can be excluded from the sale as far as capital gains tax. These are things we help folks walk through, and we feel our experience brings value to the process,” Hewitt said.

Hewitt says, in each transaction, they work closely with a team of professionals including bankers, lawyers, CPA’s and intermediaries to make sure all protocols are followed. For more information on Hewitt Land Company, and the family’s team of experts in agriculture land and real estate, check out www.hewittlandcompany.com. Or give them a call at 605-791-2300.

in well sodded native pasture. Pipeline water, two sets of improvements, with 3± miles of creek bottom and 460 AUMs grazing lease. This all contiguous ranch is loaded with production potential and priced to sell. A REAL VALUE ON TODAY’S MARKET!

Because IT’S MORE 605-791-2300 13467 Arapahoe Dr. THAN Piedmont,A SDDEAL 57769 Hewittlandcompany.com HewittLandCompany.com

Moreau River Ranch- Mud Butte, SD The Moreau River Ranch is a rare find in Western South Dakota, boasting over 3.5 miles of the Moreau River which offers live water and natural protection throughout the ranch. The River Break Hills are loaded with Native Grasses and occasional sage brush providing the perfect blend for range calving a set of cows or enjoying your own private hunting ground.

Improvements include a modest 3-bedroom home, shop, barn, and corrals. 2,389 Total Acres (1,319 Deeded) Price: $1,400,000

McKnight Angus Ranch – Bison, Perkins County, SD The McKnight Angus Ranch has established itself as one of the foremost recognized Angus operations in the northern plains. - 3,000+/- tillable acres, 5 homes, state of the art working facility, sale barn, extensive additional improvements, 8 wells and numerous rural water taps. Total acres- 7,308 (6,428 deeded) Price: $8,400,000.

SALE PENDING

SALE PENDING

HO Ranch Irrigated Hayland - Vale, SD located just west of Vale, SD, is one of the highest productivity indexing farm properties in the area. The property consists of 109.1 acres (98 irrigated) class I and II soils, 2013 pivot Zimmatic irrigation system, loafing shed with developed free flowing spring, Priced at $485,000

Morrison Ranch Piedmont, SD; 220 acres Two homes, full set of out buildings, 3 wells, 100 acres of hayland, and Elk Creek traversing the property.

Priced at $720,000

JD Hewitt 605-347-1100 Tyson Hewitt 605-206-0034 Tanner Hewitt 605-490-7952 Dan Todd 605-280-9214 60

Give Us A Call For A No Obligation Assessment Of Your Property

Homeland 2016

TRI-STATE LIVESTOCK NEWS | THE FENCE POST

Johnson Place Firesteel, SD; 320 acres Fantastic Corson County grass with home, shop, barn, and continuous corrals.

Priced at $640,000

13167 Arapahoe Drive Piedmont, SD 57769 605-791-2300

1205 N Harrison #202 Pierre, SD 57501 605-494-0205

Advertiser Index A. Bruce Johnson & Assoc............................................................... 22 AGPRO...................................................................................................64 Agri-Enterprises, Inc.......................................52,53 & Back Cover Alpine Homes, Inc.............................................................................56 Arnold Realty..........................................................................................2 Asmus Brothers.................................................................................... 8 B & G Equipment, Inc........................................................................ 17 Bertolotto Real Estate & Auction Inc......................................... 22 Cathy Anderson Coldwell Banker...............................................39 Champion Real Estate.................................................................... 40 Clark & Associates Land................................................................. 50 Crazy Woman Realty...........................................................................1 Dakota Land Company....................................................................13 Dakota MAC.........................................................................................54 Eslabon Companies......................................................................... 30 Farm Credit of Southern Colorado.............................................15 First Farm Bank .....................................................................................4 Gateway Realty, LLC/Wiggins......................................................62 Goodman Realty Co., Inc..................................................................11 Helberg and Nuss Auctions & Realty........................................ 30 Hewitt Land Company................................................................... 60 Kraupies Auction Service............................................................... 50 Kreps-Wiedeman Auctioneers................................................... 40 Land Brokers Inc. ..............................................................................33

Leadbetter & Webster Land Co...................................................44 Liechty Homes...................................................................................49 Mason & Morse.........................................................................24 & 25 McFeeders Realty...............................................................................61 Metro Brokers - Rhonda Giles...................................................... 55 Morgan County Realty.....................................................................28 Nebraska Land and Cattle Agency Inc...................................... 32 Nebraska Land Brokers....................................................................29 Orr Land Company..............................................................................5 Pearson Real Estate Co., Inc..........................................................36 Real Estate Center - Belle Fourche............................................ 20 RMA Realty.......................................................................................... 47 Rocking X Land Company..............................................................38 Schroeder’s All American Homes................ Inside Back Cover Sears Real Estate/Greeley...................................................55 & 57 Shippy Realty.......................................................................................51 Silver Spur Trailers..............................................................................15 South River Real Estate....................................................................16 Sturgis Real Estate...............................................................................11 The Fence Post ........................................................................ 33 & 41 Tri-State Livestock News..................................................... 33 & 63 Tri State Realty.................................................................................... 37 Wardcraft Homes..............................................Inside Front Cover Western Land & Water LLC........................................................... 57

325 W Platte Ave. Fort Morgan, Co 80701 970-867-7816 www.mcfeeders.com

Our experienced Brokers are here to help you with all your real estate needs.

Farm & Ranch ~ Residential ~ Commercial ~ Vacant Land ~ Income As well as Residential & Farm Management.

Donald Jones

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Kristin Lindsey

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TRI-STATE LIVESTOCK NEWS | THE FENCE POST

Lindsay Lopez

Homeland 2016

61

Wiggins (970) 483-7373 105 Central Ave., Suit A Wiggins, CO 80654

Ft. Morgan (970) 867-7373

Wiggins/Fort Morgan

www.gatewayrealtywiggins.com Independently Owned & Operated

417 Main Street Fort Morgan, CO 80701

7491 County Road 73 - MLS 799939 Roggen, CO 80652 Beautiful 3 bed 2 bath home over unfinished basement on 5.4 acres with a large 40x60 shop. Large kitchen with formal dining area and wet bar, complete with two room glass fireplace. Shop has a 12 ft. west facing side sliding door and a south facing 14x16 garage door. One of the propane tanks is a lease. Buyer to verify all measurements.

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Riverside Ridge Subdivision

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7850 HWY 52 - MLS 805565 Wiggins, CO 80654 Quaint, 4 bedroom, 1 bath home on 6.2 acres with large shop & corrals. Home is surrounded by trees. Galley style kitchen with eat-in dining area

$257,900 62

Homeland 2016

TRI-STATE LIVESTOCK NEWS | THE FENCE POST

/tsln.fre .facebook.com .com and www

ne: www.tsln

Enjoy us onli

$1.50

5 Sections Issue 7 Volume 53 •

ry 31, Saturday, Janua

YOU

BHSS means ranch business

IT CAN COUNT ON

2015

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THE BIG PICTURE

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How much is too much?

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famA ranching d ily’s continue success

A brand that lasts

4 Sections

Happy Veterans Day

A8 SDSU Econo consider buyingmist Matt Dierson projec ts corn prices corn early if to it pencils out.

Photo by Amandincrease, and suggests that cattlemen a Radke

CORN AND CATTLE A bumper co rn opportunities crop creates for feeders

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right now, so it’s ber 30, and excitin for going to be a on Page A13 -cow-calf producers g fall run.” pretty are in a One factor that good spot this is playing into the decision of their calf crop,year as they sell cow-calf operator of how long the calves to hold his weane HLA Field Rep. says J.R. Scott, that’s is corn, and the overall abund d at his disposal ance of grain now that the “While every 2015 corn harves one would love is winding down. t to see prices According to as 2014, folks at the same levels Statistics Servicethe USDA National Agricu ltural (NASS), “Corn production about the fact are still optimistic cast at 13.6 billion bushe OUTSIDE that this will ls, down 4 percenis forelast year’s secon record be the t from d-highest year produ CIRCLE on record for percent from the Augusction and down less than 1 calves,” said t foreca oys Scott. st. Based on A cowb condigood

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Marketing PRC Plan...what ? laid up marketing plan B11

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IT’S THE PITT S

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Trade office releases docu A5 ment’s text to the public

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ANGUS ASSOCIATION

Organization names Texa s native its new leader

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ANGUS

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ED! FIRST SEMEN TEST UNTIL MAY 1ST!

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TEACHING OF THE HORSES

UW equine program seek s to expand opportunities

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OUTSIDE CIRCLE Sad news come s as Wyoming horse breeder passes away

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Veteran Salute: Richard Palczewski

The only one of four brothe “see action” rs to in ard Palczewski,World War II, Richbackground gave91, said his ranch in the U.S. Navy. him an advantage “I got to run and I only had this landing craft ucation.” Palczean eighth grade edwski said whenhe menti oned his limited education to one of his superiors, the respo nse was “I know, but you have common sense.”

Palczewski One brother, Carl, also served the second Worldin the Navy during left home soil, War but he never chanic station working as a meed in Palczewski spent Florida. his young years helping his family on the ranch west of Haley, North farmin the extrem Dakot e southwest corner a the state. of At the age of to herd sheep twelve, he was hired for of Ralph, South a big outfit south Dakota.

“I was suppo sed ling ewes away to keep the yearfrom the lambi ewes. I didn’t ng have a horse or a dog, just my feet.” lar per day plusThe job paid a dolMeals, Palcze “room and board.” wski said, consis ted

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There are good reasons not all men have facia l hair

25TH ANNUAL

Selling

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WE REMEMBER

l soon.

Lako ta Triba The Oglal a June 11, 2013, Council voted ance 13-21, that to adopt Ordin 1,000 head of uce the would introd South Unit of buffalo to the nal park, part of

By Amanda Radke Badlands natio Indian Reserfor Tri-State Livest A quick snapsh ock News ot of current the Pine Ridge Unit is manScott says 400 pound steers prices at press time, the vation. The South cwt; 500 pound are bringing ership with $260-275/ lose to 3,500 steers are $220-2 aged in partnService (NPS). pound steers 40/cwt; and 600 are $205-220, moved throu calves the National Park respectively. ted “We are just direc gh the That ordinance Affairs to nosale ring at at the sale barn,getting started on our fall n calf run Herr and India our peak will eid and Decem grazBureau of Live stock be in November ber,” he said. who held the Auct ion the cow-ca “Things are pretty (HLA) on Octo tify ranchers lf guy

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Volume 53 • Issue 44

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By Maria Tussin r Assistant Edito the South Unit Ranchers in are National Park of Badlands . Their sigh of relief by breathing a be replaced e not cattle will buffalo anytim tribally-owned

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rs Tribal ranche regain South Unit leases on Badlands

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By Heather ock News for Tri-State Livest cers, states produ ® For western Stock Show Hills are the Black chance to compnew (BHSS) is a bly buy a chute s, possi and price bulls. ng geldi ranch that typically It’s a social eventess transaction includes a busin for those on the ver, , or two. Howe the vendor table other side of show stick, it is or saddle horn to engage with an opportunity while community the ranching eting in one comp or in attending ier stock shows of the prem is the country. ing customer “The ranch and of the BHSS, the foundation I’m involved in it’s the only deal that kind of meet can I r where horse traine customer,” said mers custo r. “The evJamie Stove your rancher, at BHSS are types who have oy eryday cowb they breed each 10 or so mares horse pick a stud to year. If they it’s mares, to use on thoses a really nice raise themselve

tion to give es new evalua lls Genex launch fertility of bu on ta da s er produc heim, Editor . migh havoc on “Open!” unced open little more oftenis. the mostWhen prono ultrasound doing it a bull, that It is perhaps -lett er or Blaming the is by the vet him, dedrea ded fouruage of technician, often the cowShe Or maybe thanking dual. was thin. on the indivi word in the lang e pending blamed. “She x recently decalving. Mayb t In fact Gene had trouble ranching. program didn’ rch up she t resea a and veloped much Ran king righ sale she’s racist mine just how bull bull like that bull.” were bred to deter t the there with blame or credi When cows ping day, day and ship her preg- using artificial inseminad take. le al- shoul ex is pleas ed to the day a ranc can be tion, the list of possib “Gen heck, the first even longer. nancy tests ibis becomes was bad that launch PregC most evaluation in ’s ity er year fertil “The weath on sire one of the said Brad she slipped beef industry,” day. I think was loud the on, the company’s Beef stressful. e profit ice. The help Johns A ranch’s entir on the the spooked the cattle. I Product Development Mans and of potential relie cows to think we got a bad batchwas ager. put a lot of “Genex has ability of the raise a semen. The techn” ician to 18 The list the last 12 and ced... in erien uce effort prod r fertility back inexp be endless. hs to gathe could calf, then come times do mont get pregBut how many ity of the into heat and a short fertil in we blame the nant again . bull?

Genex on Page A2 Presi See time of Vice d perio Asso ciate e but any ams with

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WATER RIGHTS: We have several cash buyers interested in water and farms with good water rights. Heavily interested in WSSC, Cache, Larimer/Weld, Windsor, Poudre, CBT and FRICO. Please call Ryan for a bid on your farm.

LAND FOR SALE

NEW LISTING One share of Latham Ditch available for purchase.

YUMA COUNTY, CO: 3,320 acres, 4,500 head feedlot, two custom homes, guest house, irrigated ground and pasture. $8,595,000.

NEW LISTING PROSPECT VALLEY: 156 acres +/- of which 153 acres are enrolled in CRP through 2021 with an annual payment of $4,605. ADAMS COUNTY: 77.96 acres dry land. 104th and Imboden Road. $175,000. $240,000 NEW LISTING JOHNSTOWN, CO: 14.55 acres +/- on Hwy 402.

Currently operated as a dairy. Perfect acreage property for 4-H or cattle operation close to town. Two homes on the property. Double 6 parlor. $850,000

MEAD, CO: 3928 Vale View Lane. 7.76 +/- acre residential lot with excellent views $285,000.

NEW LISTING HUDSON, CO: 113 acres +/- adjacent to development.

Pivot Irrigated with Henrylyn Water. $1,200,000

MEAD, CO: 14.7 acres +/- situated along CR 34 and Colorado Blvd.

Suitable for a commercial business needing high visibility. $650,000.

NEW LISTING FORT LUPTON, CO: 170 acres +/- with 16 shares of FRICO water, pivot and motocross track. Eligible for a recorded exemption. $1,500,000

WIGGINS, CO: 320 +/- total acres of which 298.2 +/- acres are enrolled in CRP through 2021. The annual payment is $9,644. price reduced $340,000.

WELD COUNTY, CO: 220 Acres dryland near Lochbuie. $880,000.

NEW LISTING WELD COUNTY, CO: 29 acres +/- pasture with Dry Creek meandering through the property. NE of Fort Lupton. $200,000 ROCKPORT, CO: 78 acres +/- of pasture located along Hwy 85 south of CR 120. NEW PRICE $110,000.

NEW LISTING GREELEY, CO: Home on 59 acres +/- along the South PLATTEVILLE, CO: +/- 40 acre heavy industrial site. Zoned I-3. Has Platte just east of Greeley. $550,000 water well permit for commercial/industrial uses. Overhead power LOGAN COUNTY: 89 acres +/- of which 68 acres +/- are flood irrigated installed to property with 3 phase capability. New gravel surface with North Sterling Water, hay shed included. SOLD access road to property. Located 9 miles east of Platteville. $520,000.

Contact Olivia (720) 684-7220 for more info.

BELLVUE, CO: 38 acres +/- with a 3,245 sq ft home and a second 868 sq ft home. Great location just north of Fort Collins. $1,499,000 MORGAN COUNTY, CO: +/- 1000 Acre Farm/CRP/Pasture Combo.

Located north of Fort Morgan. $1,500,000.

KEENESBURG, CO: 161 Irrigated acres +/- with Henrylyn water.

Annexed into Keenesburg and zoned R-1. 68 AF of water for the AULT, CO: 120 acres +/- zoned industrial. all utilities are to the site. development is included. $1,369,435 Lots range from 4 acres to 19.5 acres. $3,900,000.

BRIGHTON, CO: 278 acres +/- of which 178 are irrigated. Adjacent to WASHINGTON COUNTY, CO: +/- 320 total acres CRP - 99.2 acres development. 4 WAS wells with 279 AF. $900,000 enrolled at $37.43/acre ($3,713/yr) through 2023. 208.5 acres +/KEENESBURG, CO: 143 acres +/- with Henrylyn water. 60 Acre pivot enrolled at $27.78/acre ($5,792/yr) through 2022.PRICE REDUCED $300,000. in alfalfa. UPRR section with 2.5% override. $1,000,000 KEENESBURG, CO: 25 acres +/- annexed into Keenesburg zoned R-1. $500,000.

KEENESBURG, CO: 23 acres +/- with a 40’x100’ shop with living quarters. $425,000 AULT, CO: 120 acres +/- zoned industrial. All utilities are to the site.

Lots range from 4 acres to 19.5 acres. $3,900,000

WELD COUNTY, CO: +/- 118 acres located along East I-25 Frontage Rd north of Hwy 52. Water & sewer available. Excellent retail/ commercial opportunity. $3,600,000.

FEEDLOTS & HEIFER YARDS FOR SALE

INGALLS, KS: Very nice 6,750 head feedlot situated on 160 acres +/-, 96 of which is dry land. Shop, office, nice home, working facility and automatic waterers. $1,200,000

WELD COUNTY, CO: +/- 127 acres, 116 of which is farmland, located YUMA COUNTY, CO: 3,320 acres +/- consisting of 378 +/- irrigated, SW of Platteville. Property has an irrigation well and leased surface the balance in pasture. 4,500 head feedlot. Two custom homes. water. NEW PRICE $450,000. $8,595,000.

BRIGHTON, CO: 278 acres +/- of which 178 are irrigated. Adjacent to DAIRIES FOR SALE development. 4 WAS wells with 279 AF. $900,000.

WELD COUNTY, CO: 700-head dairy on 180 +/- acres. Dbl-10 parallel w/newer BouMatic equipment and auto take-offs. Parlor AULT, CO: 138 acres +/- with 1.75 shares of Water Supply and was completely remodeled in 2014/2015. Two 6,000 gal. milk tanks, Storage. Newer 4,500 sq. ft. home. SOLD one new in 2012. Very nice vet building, five mobile homes and an FORT LUPTON: 53 acres +/- irrigated farmland. Three siderolls and owner’s home. Three coffin wells, two stockwells & a 3/4” water 15 shares of Fulton. $534,250. tap. $3,500,000

Sign up for our email news blast at www.agpros.com

3050 67th Ave., Greeley, CO 80634 Ryan Hostetler, Broker • 303-883-7080 64

Homeland 2016

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