Farm values are expanding according to Mark Mommsen of the agriculture real estate and farm investment company Martin, Goodrich, and Waddell (MGW).  Mommsen said the firm specializes in the farm areas of western Iowa, northern Illinois, and southern Wisconsin but has handled businesses throughout the plains, western, and southern states.  They maintain offices in Sycamore and DeWitt, Iowa, and are celebrating 50 years in business.  Mommsen explained the uptick in farm valuations due to the increased use of corn-dependent ethanol and the limited number of farm properties coming up for sale.  He presented a chart showing an average six-thousand-dollar price per acre in 2005 growing to over $16-thousand per acre today.  Mommsen also showed comparisons of farm operational returns with other financial benchmarks from 1970 to 2024.  His data noted a 10.5 % return on farms versus a 7.3% return for the S&P index, a 6.5% return for the New York Stock Exchange, a 7.2% return for triple-A bonds, and a 7.5% return for Gold.  He added that many investors see owning farmland as a “flight to safety” during bad economic times.

 

Mommsen explained the challenges of land ownership and rental plus crop plantings when trying to make a yearly profit.  Mommsen gave an example of how farmer-owned land produced a profit through operations when cash rental of land came in at a loss where both used the same inputs for expenses.  He said modern farming requires close management of land costs and seed costs.  He noted that one way farmers are choosing to increase profits is through organic farming.  Organic corn can bring $13.40 a bushel versus standard corn at $5.36 a bushel, according to Mommsen.  He said the drawback is the estimated 200-300% more field management required for weed control and a somewhat lesser overall land yield than non-organic corn.  Mommsen said his personal observation is that there is a lot of organic farming taking place in DeKalb County.

 

More information on the services of MGW is available on their website at www.mgw.us.com.

September 13, 1851 – American Army physician Walter Reed (best known for his yellow fever research) is born in Gloucester County, Virginia.

 

September 13, 1857 – American candy entrepreneur Milton Hershey is born in rural Derry Township Pennsylvania.  He began a confectioner’s apprenticeship at age fifteen.  After two unsuccessful businesses left him penniless, he struck on an enormously successful way of making caramels with fresh milk.  He then sold this business for $1 million in 1900 to concentrate on building his chocolate empire which survives to this day with total assets of $13.7 billion.

 

September 15, 1857 – William Howard Taft, who served as 27^th President of the United States and later became 10^th Chief Justice of the Supreme Court, is born in Cincinnati, Ohio.

 

September 15, 1890 -  Best-selling fiction writer of all time, Agatha Christie, is born in Torquay, England.

September 13, 1814 – The Battle of Fort Henry in Baltimore Harbor occurred and was observed by Francis Scott Key.  He was inspired to write the now-famous verse for our National Anthem after seeing the American flag still flying over the fort following a night of British attack.

 

September 14, 1741 – Composer George Frederick Handel finishes the “Messiah” after working on it nonstop for 23 days.

 

September 15, 1916 – Tanks are first used in combat during the Allied offensive at the Battle of the Somme in World War I.

 

September 18, 1947 – The U. S. Air Force is established as a separate military service.