I have noticed the frost coming out of some fields however, the water is still sitting in the low ground tells me the tile hasn’t opened yet.

Many farmers are asking themselves – “When will we get in the fields?” In the middle 1960′s when I was still a young pup, Fred Ninow told me something I’ve never forgotten. He said, “Young fella, you just don’t get into the field until 2 things happen in Minnesota in the spring. They are: the snow has to be out of the groves and the ice has to be off of the lakes!”. I’ve watched this during the years that have passed and the saying is still true today as it was back in the ’60′s.

We will get warm temps this spring and the crop will be planted, everyone just has to be patient. When you finally get in the fields with the tractors, equipment and trucks, be careful and don’t work being tired. I was on a fire department for many years and it is not a pretty sight when called to a farm accident. Your family needs you.

Take care
Gary P Hotovec
Heller Group – 1 Stop Realty
Olivia, MN

Corn yields I’ve been hearing in the local area have been from 150 to 200 bu. plus per acre with soybeans from 25 to 65 bu. per acre, all depends on who got the rain!  I’ve heard the sugar beets are yielding good also in the area.

I talked to my cousin in Iowa last night, he told me a farm that he manages in NE Iowa, 1 to 2 bu. per acre and the corn is 2′ to 3′ high with no ears.  Not everything is all well down on the farm!  Also, I visited with a farmer yesterday who was doing some tile repair by Willmar.  They dug down 10′ to the tile and powder dry all the way down.  This weather is good for the harvesting, but we sure do need rain and moisture before next spring and planting!

Gary P Hotovec

Hotovec Auction Center

Hutchinson, MN

The Renville and McLeod County Fairs will be during the middle of August.  I enjoy seeing the 4H kids with their livestock displays at the fair.  I have been helping with the 4H livestock auction at the McLeod Co. Fair for years.  If you can, stop by either or both of the fairs and support these kids.  They work hard all year and the fair is the time and place to show off this hard work.  Encourage them to participate as long as they can.  The livestock numbers seem to be dwindling at these fairs, the fairs need these 4H clubs to help keep the livestock numbers up!

Gary P Hotovec

Hotovec Auction Center

Hutchinson

Now with topical heat for several weeks and drought conditions in some of the prime corn growing states, the 2012 corn crop is in doubt.  Local October 2012 corn prices have risen from $4.60 to $6.17 quickly leaving us all wondering what is going to happen?  Stand by for more updates.

Gary P Hotovec

Hotovec Auction Center, Inc.

Hutchinson, MN

Because farming is such a capital intensive business, many farm families that I know personally have always had to prioritize where the capital might best be spent.  Often times the family reduced their standard of living so that the net earnings could be plowed back into the farm.

It is nice to see that perhaps today the earnings permit a little extra capital to provide for both farm and personal use.

There goes the farm — to the next generation —–

It use to be tradition that the family farm, went to the next generation.  In the 20^th century, it was easy to do that because it seemed like there was nearly always a son or family member who wanted to continue farming the family farm.  But now as the size of farms get larger, and our children want to move to the big city to have a career and raise a family, so that “next” generation is not so important to them to remain on the farm.

So now what? Our parents still transferred the farm to their children, but we cash rent the farm out to the neighbor and love having the extra income.  Yes, once in a while there is a spat between siblings or siblings’ spouses.  But that cash rent pays for our entertainment and vacations and life is good.  Then comes that day, when you get that phone call that one of your siblings or siblings’ spouses passes away.  Now we have more people involved in the family farm.  We have to deal with the nieces and nephews. Or my spouse or I may pass away and our children and their families have to deal with their aunts and uncles and maybe even their cousins.

Does it sound complicated?

Example:

Grandma and Grandma Smith died about 33 years ago.  They left 160 acre farm to their three sons, who decided to keep the farm and cash rent it out.  One son lived within a half a mile of this farm. Then the youngest son past away and gave his 1/3 share of the farm to his three children with a life estate to his wife  A year later, the oldest son, who never married, suffered from dementia and was in the nursing home for seven years.  During that time, he needed money so his nephew, purchased his 1/3 share of the farm.  A few years later, the middle son passed away and willed his 1/3 share to his four children, with a life estate to his wife. So when the 2 wives pass away, we will have seven nieces and nephews owning 2/3’s of 160 acres.

Who is going to want to buy 2/3’s of a farm?  Probably one person, the nephew that owns the other 1/3. Are the seven of them going to agree to sell the farm at the same time? Are the seven heirs going to agree on a listing price? Could the seven heirs be lucky enough that the nephew owning the 1/3 would want to sell the farm at the same time? At least this farm is NOT the farm that Grandma and Grandpa first homesteaded when they came to Minnesota nor does the farm have any buildings where Grandma and Grandpa lived, so we are not dealing with those feelings.

This example happens to be a friend’s situation.  She is frustrated because Mom won’t sell her 1/3 share of the farm because Dad gave it to her and she likes getting the income off the farm each year.  She can understand Mom’s feelings, but she wishes Mom would think about the complicated situation she is going to be leaving for her 3 grown children.

So, maybe now is the time to sell the farm before we have to get the next generation involved.

This spring, the majority of the farmers have either planted nothing or perhaps one field of corn.  The Southern Minnesota Sugarbeet Co-Op reported about 12-13% of the contracted sugarbeet crop has been planted.  To my knowledge, there have been no soybeans planted.  The pea companies have been searching for fields dry enough to plant the contracted green pea crop.  They have had some success in doing so.

Most farmers feel that there will be no need to switch to earlier maturing hybrids unless planting gets delayed beyond May 15th.

April 8, 2011

HELLER of Olivia, MN Attends #1 National Land Conference in the Country

Olivia, MN – Roger Heller, Accredited Farm and Land Broker of Heller Group, 1 Stop Realty in Olivia, MN, attended the “Landing the Deal” National Land Conference of the REALTORS® Land Institute, held March 24 – 25, 2011, in Nashville, Tenn.

The annual conference, which is attended by the leading land professionals across the country, included a series of programs on the latest trends and issues facing the land specialist in real estate.  “As farmland prices reach historic highs, environmental and property rights issues hit the headlines, and land markets adjust to the realities of today’s market,” says Roger, “it’s more important than ever that practitioners who specialize in land transactions keep their competitive edge.  Attending a conference like the National Land Conference enhances my ability to serve my clients.”

The conference is produced annually by the REALTORS® Land Institute, which is an affiliate organization of the National Association of REALTORS® and the membership organization of choice for land professionals.  The Institute awards its Accredited Land Consultant (ALC) designation to only those members who achieve the highest levels of education and experience.
Program sessions at the conference covered important big picture issues, including the overall economy, the regulatory environment, and working with lenders in today’s economy.  In addition, speakers explored real estate specific topics such as online auctions, negotiations, the investment outlook for timber and agriculture, razing and demolition, opportunities in natural gas, and strategies for success in advisory services.  In addition, there were ample roundtable discussions and networking sessions for one-on-one information sharing and deal making.

Speakers included academics Dr. Mark Dotzour of Texas A&M University; Dr. Lloyd Irland of Yale University; Peter T. Wulfhorst of Pennsylvania State University; and Dr. Frank Parker of Boston College, as well as practitioners from firms United Country, Colliers International, International Farming Corporation, Prudential Commercial, Brandenburg Industrial, and more.  Sponsoring organizations included Farmers National Company, the National Association of REALTORS®, LandFotos, Map My Land, The Land Report, Mossy Oak Properties, Open Fences, United Country, Atlantic Advisory Group, the American Society of Farm and Ranch Managers, the Greater Nashville Assn. of REALTORS®, and the Tennessee Association of REALTORS®.

For more information on the REALTORS® Land Institute and its Accredited Land Consultant (ALC) designation, go to www.rliland.com.  Next year’s National Land Conference will be held in Denver, Colo.  (dates to be announced).

Auction day, was comprised of seventeen registered bidders and a room full of “Sweet Scandinavians” who enjoyed listening to the auction, and the fellowship with their cup of coffee and cookie in hand.  The festivities started with a welcome, terms/conditions and the bidding began. The auction opened with a bid of 4,000 per acre and within seconds was at 4,900 per acre.  I told the crowd that the farm was now being sold absolute and we would have a new owner.  Prior to saying sold, I scanned the crowd one more time to give everyone in the room an equal opportunity.  There was no more bids, the strong bidding had already taken place and I said SOLD!  The contract price came to $5,196 (that includes the buyers premium). Most importantly, our goal is to provide quality service and a “first rate” auction experience to our sellers and buyers.  All of the parties involved were very pleased with the auction.

I haven’t checked yet, however, I believe this may be a record sale for Swift County.  Currently, land prices are at an all time high and I believe the the driving force is high commodity prices and the lack of supply versus the high demand.  If you are considering selling, the prices have never been better and the capital gains tax rate is still historically low.  Call us today for a private consultation regarding what your farm land is worth!

-Kristine Fladeboe Duininck

Fladeboe Auctions

Heller Group – 1 Stop Realty, Inc.

#320-212-9379