Archive for October, 2009

CAN FEDERAL STIMULUS DOLLARS MAKE THE WIND BLOW?

Tuesday, October 27th, 2009

The quick answer to that question is obviously “no”.  But the government can create incentives for new “wind farms” to be built.  Case in point - the federal government is attempting to renew investment interest in certain areas of our economy, including wind energy, by giving new, “stimulus” bill funded, cash rebates and tax incentives to those who are involved in project development.  And based on a recent report from www.agweb.com, the big boys of Wall Street finance are starting to play again.  To read the full article, click here. The only question I have is this – are their new wind energy investments are being made with money they were given from the TARP program?

Do you have experience with, or an opinion about, wind energy projects?  If so, send me an e-mail to doug@loranda.com to let me know your thoughts.

Tags:
Posted in Uncategorized | No Comments »

POSITIVE OUTLOOK FOR CROP PRICES IN 2010?

Tuesday, October 20th, 2009
The last 12-15 months have probably seemed like a rollercoaster to those who follow the grain markets.  In the fall of 2008 we saw a dramatic decrease in commodities prices from the spring and summer of 2008.  Since early January of this year, prices have continued to fluctuate with a wet plating season and now a wet fall.  Despite the weather, experts are still projecting close to a record-breaking crop year for corn and soybeans.

With the 2009 crop year starting to wrap up, many are starting to turn an eye towards 2010.  In an recent Bloomberg article, chief economist for Deere & Co., J.B. Penn, stated that he believes that farmers could see an uptick in commodities prices in 2010.  The main reason for his optimism is the growing demand in Asia, Africa, and the rest of the world for crops to manufacture fuel and feed livestock.  According to the author, the United Nations expects worldwide food demand to increase by 70% in the next 40 years.

Read the entire Bloomberg article here

What are your thoughts on the growing worldwide demand for food?  How do you think it will affect the commodity prices here in the U.S.?  Send us your thoughts at eric@loranda.com.

Source: Bloomberg.com

Tags:
Posted in Uncategorized | No Comments »

NUMBERS DON’T LIE…

Friday, October 9th, 2009

I’ve always been a fan of statistics.  They can tell us a lot about the strength or weakness of markets, both in the short run and over the long term.  Some might argue that farmland market statistics aren’t the most exciting topic in the world – however, by studying these numbers we can speculate about where we might be on the “curve of the market”.  Average Illinois farmland values, for example, have gone up 61 years and have gone down 7 years since the year 1940 – that’s according to the USDA/NASS annual study.  That’s a pretty good record!  And by looking at the details of the statistics, we can also see that the past 4 years (2005-2008) have been one of the best runs in land value appreciation we’ve ever experienced – second only to a 6-year run of double digit appreciation in the mid-late 1970’s.  I think we all remember what happened soon after the run-up of the 1970’s!  So… are we now at the beginning of another correction?  Take a look at the numbers for yourself by clicking here.  And e-mail me at doug@loranda.com to let me know where you think land values are headed.

Source: University of Missouri Extension

Tags: ,
Posted in Uncategorized | 1 Comment »