GF&A Sets In-Person Auction Dates for 2025

We are continuing our 40-year tradition of connecting buyers and sellers of equipment and sporting goods at our location in Wichita, Kansas.

   Mark your calendars for the following 2025 consignment events:

  • March 1 – Sporting Goods & Ammo
  • April 26 – Farm & Construction Equipment
  • September 27 – Farm & Construction Equipment
  • October 18 – Sporting Goods & Ammo

   If you have items to consign, call or stop by our office in the month leading up to the auction. If you’re not already on our mail and email list, it’s a good idea to sign up to stay up-to-date on opportunities. 

   There are no Buyer’s Premium charges at our in-person auctions, making consigning with us a profitable choice. Additionally, the professionalism of our auctioneers and staff ensures a fantastic experience for everyone involved. 

   In addition to our auctions, we are also real estate brokers and auctioneers: We sell the earth and everything on it! Call us today: 316-524-8345.

Kansas Real Estate Market Opportunities

As we move into the final months of the year, the real estate market continues to offer opportunities for buyers and sellers, even in a higher interest rate environment. While interest rates have risen from the record lows of the past few years, they remain at levels that are still manageable for many, particularly with creative financing options.

It’s Officially “Buy Now and Pay Later” Season

If you’re considering buying property, now is the perfect time to take advantage of a unique opportunity. If you go under contract and close in November, your first mortgage payment won’t be due until January 2024. This gives buyers time to get settled without immediate financial strain—ideal for those looking to make a move before the new year.

Residential Market in Kansas

Kansas’s residential market is still robust, with steady demand for homes despite the increase in interest rates. Buyers can explore options like adjustable-rate mortgages or rate buy-downs to make the cost of homeownership more affordable in the short term. Additionally, with the “buy now, pay later” benefit, buyers can enjoy several months of mortgage relief after closing.

For sellers, now is a good time to position your home on the market as demand remains consistent, especially in areas with limited inventory. 

Agricultural Land: Crop, Pasture, and Recreational Property

The agricultural sector remains a cornerstone of the state’s economy, and agricultural land—whether crop, pasture, or recreational—continues to be in high demand.

  • Crop Land: With global food demand on the rise, crop land is a valuable investment, providing long-term stability for both investors and farmers. Now is the time to buy or sell, taking advantage of stable commodity prices and solid financing options. It has been a good fall harvest!
  • Pasture Land: For ranchers or investors looking to expand livestock operations, pasture land offers significant opportunities. As the livestock market remains strong, pasture land continues to be a sound investment. Sellers can also benefit from steady buyer interest in expanding grazing operations.
  • Recreational Property: Kansas is home to some of the most sought-after recreational land for hunting, fishing, and outdoor activities. Whether you’re looking for prime hunting grounds or scenic retreat land, recreational property offers excellent potential for both personal enjoyment and investment purposes.

Commercial Real Estate in Kansas

Kansas’s commercial real estate market continues to show resilience, with certain sectors—like industrial and retail—performing well. The state’s central location and infrastructure make it an appealing destination for businesses looking to expand or relocate.

Now is an excellent time to invest in commercial properties. With the “buy now, pay later” advantage, you can purchase a commercial space and delay your first payment until 2024, allowing you to plan for your business growth without immediate financial pressures. Sellers, on the other hand, can capitalize on increasing demand for well-positioned commercial properties in thriving Kansas markets like Wichita and Manhattan.

How Gene Francis & Associates Can Help You in Kansas

At Gene Francis & Associates, we are committed to providing expert guidance to buyers and sellers across Kansas. Our team specializes in residential, agricultural, and commercial real estate, ensuring you receive the best advice for your situation.

Whether you’re buying now to take advantage of delayed payments or you’re selling to meet growing demand, we’re here to assist you every step of the way. Our knowledge of the real estate market allows us to offer tailored solutions that help you achieve your real estate goals.

Contact us today to discuss how we can help you succeed in this dynamic real estate market.

375 +/- Acres – Kingman Co., KS

U.S. Agricultural Export Market Update

The U.S. agricultural export market continues to be a crucial player in global trade, with significant activity in key commodities such as wheat, corn, grain sorghum, cotton, and the soybean complex. However, the ongoing conflicts in Russia/Ukraine and Israel/Gaza are having profound impacts on these markets, influencing trade dynamics, pricing, and transportation logistics. Here’s an overview of the current status, along with the effects of these geopolitical developments.

U.S. wheat exports have experienced increased demand, particularly from Asia and North Africa. The disruption in wheat supplies from Russia and Ukraine, both major global producers, has created supply gaps that U.S. wheat is now helping to fill. However, logistical challenges, including rail transportation delays and port congestion, have slightly impacted shipment schedules.

Corn exports remain strong, with heightened demand from countries like Mexico, Japan, and South Korea. The conflict in Ukraine, a significant corn exporter, has led to shifts in global trade patterns, with buyers turning to the U.S. as an alternative source. Recent improvements in river transportation infrastructure have helped mitigate some of the logistical issues, ensuring timely deliveries despite the increased pressure on supply chains.

Grain sorghum, primarily exported to China, continues to perform well. The ongoing Russia/Ukraine conflict has further solidified China’s reliance on U.S. grain sorghum as alternative sources become less reliable. U.S. exports have benefited from relatively smooth operations, although trade tensions and tariff uncertainties remain potential risks.

U.S. cotton exports have remained robust, particularly to Southeast Asia. However, global market fluctuations and competition from Brazil and India have pressured U.S. cotton prices. The Israel/Gaza conflict has added to regional instability, which could affect trade routes and increase costs. Efficient transportation logistics, particularly via southern ports, have been crucial in maintaining competitiveness despite these challenges.

The soybean complex, including soybeans, soybean oil, and soybean meal, continues to be a cornerstone of U.S. agricultural exports. China remains the largest importer of U.S. soybeans, despite ongoing trade negotiations and tariffs. The disruption of Black Sea trade routes due to the Russia/Ukraine war has led to increased global demand for U.S. soybeans. Meanwhile, infrastructure improvements in the Gulf of Mexico and the Pacific Northwest have enhanced the ability to meet this growing demand, ensuring U.S. soybeans remain a staple in international markets.

Impact of Geopolitical Conflicts

  1. Supply Chain Disruptions: The Russia/Ukraine conflict has significantly disrupted global grain markets, leading to higher prices and increased demand for U.S. exports. The Israel/Gaza conflict has created regional instability, particularly affecting energy prices, which in turn impacts transportation and production costs for U.S. agricultural exports.
  2. Market Shifts: As buyers seek alternatives to disrupted supplies from conflict zones, the U.S. has seen a boost in export demand, particularly for wheat, corn, and soybeans. However, these conflicts also contribute to broader market volatility, making it essential for U.S. exporters to stay agile and informed.
  3. Logistical Challenges: Both conflicts have exacerbated existing logistical issues, including port congestion and transportation delays, but ongoing investments in infrastructure are helping to alleviate some of these pressures.

As real estate professionals specializing in land transactions in Kansas, we understand how these global events can influence the local market. Whether you’re buying or selling agricultural land, navigating these complexities requires in-depth knowledge and strategic guidance. We can assist you in evaluating how current market trends and global disruptions may affect land values and potential investments. Our expertise in Kansas agricultural land ensures that you make informed decisions that align with both your immediate needs and long-term goals.

Gene Francis & Associates is celebrating 40 years of experience assisting all real estate needs. Contact us to assist today in this dynamic market!

Buyer Written Agreement Now Required

Starting August 17, 2024, if you are a buyer working with an MLS Participant, you will need to sign a written agreement with your agent before you can tour a home, whether in person or through a live virtual tour.

As a buyer using an MLS, ensure you have this written agreement in place with your agent before visiting any properties. This agreement will clarify the services provided and any associated costs.

If you are only speaking with an agent at an open house or inquiring about their services, a written agreement is not required.

Agent compensation remains negotiable for both buyers and sellers. 

When selecting an agent, be sure to ask about their services, compensation, and the details of any required written agreements.

Give us a call! We are here to answer your questions and guide you through every step of buying or selling your home. Celebrating 40 years of experience to assist all your real estate needs. Contact us to assist today!

Boundary Line Surveys: Essential for Buyers and Sellers in Kansas

With the passage of Kansas state statute 19-1434, it’s now more important than ever for both buyers and sellers to consider getting a boundary line survey. This statute mandates the recording of survey plats and introduces specific requirements for land surveyors and county officials.

Key Points of the Statute:

  1. Survey Plat Recording:
    • Whenever a land surveyor performs a survey resulting in a new legal description or the creation of a new tract of land, a survey plat must be recorded.
    • This recording must occur within 90 days after the survey’s completion and be filed with the register of deeds in the county where the survey was conducted.
    • The survey plat must be certified with the seal and signature of the land surveyor who conducted the survey, and this surveyor is responsible for ensuring the recording of the survey.
  2. Alternative Filing Office:
    • The board of county commissioners has the authority to designate an alternative county office for the filing of survey plats, excluding subdivision plats, through a resolution.
    • This designated office must maintain an index of all surveys by section, township, and range, with surveys of platted lots indexed by subdivision.
    • The cost for filing the survey plat at this alternative office cannot exceed the cost of recording similar documents at the register of deeds.

Importance for Buyers and Sellers:

  • Accuracy in Property Boundaries:
    • For buyers, a boundary line survey ensures that the property’s boundaries are clearly defined, preventing future disputes with neighbors.
    • For sellers, providing an accurate boundary line survey can facilitate a smoother transaction and instill confidence in potential buyers.
  • Legal Compliance:
    • Both parties must ensure that any new legal descriptions or tract creations comply with Kansas state law, thereby avoiding legal complications.
  • Clarity in Transactions:
    • Having a recorded survey plat provides a clear and official record of the property’s boundaries, which is beneficial for both the current transaction and any future dealings with the property.

In summary, obtaining a boundary line survey is a prudent step for both buyers and sellers in Kansas. It ensures clarity, legal compliance, and helps in the smooth processing of property transactions under the new state statute 19-1434.

Celebrating 40 years of experience to assist all your real estate needs. Contact us to assist today!

Kansas’ Eastern Red Cedar: Balancing Tradition and Conservation

Did you know that Kansas has only one native evergreen tree? 

That tree is the Eastern Red Cedar. 

Long before European settlement, the Eastern Red Cedar is believed to only be found in areas where fire couldn’t reach such as bluffs or steep slopes. Due to their ability to grow near each other and their hardiness to extreme weather, they became the ideal candidate for windbreaks and shelterbelts since the 1930s. 

So, what’s the big deal? 

Since 1965 Eastern Red Cedar populations in Kansas have increased by over 23,000% and exponentially rising. These trees bring their lowest branches close to the ground, which in turn makes it easy for fire to carry from dry grasses onto the lowest limbs. This foliage contains oils the ignite and burn easy, causing these trees to burn extremely hot. One mature cedar tree can have flames of over 50 feet! 

Cedar infested areas are known to displace quail, turkeys, and other grassland birds as well. Due to their ability to dominate and outcompete local plant life, a densely wooded cedar patch will starve grasses and other plants of water, nutrients, and sunlight.

So, how do I manage cedar trees in my pasture or around my house? 

The good news is that it isn’t hard to eliminate small cedar trees growing in a pasture. A prescribed burn is extremely effective on trees six feet tall or smaller (if it is conducted safely). If a prescribed pasture burn isn’t feasible, then cutting Cedars off below the lowest branches with garden cutters is enough to kill these trees. 

Bigger trees may require mechanical removal. An inexpensive way to reduce the risk of fire on bigger trees is by trimming branches that hang low to the ground to mitigate the chance of fire carrying from grasses onto the tree. 

It’s best to take care of them early. An ounce of prevention is worth a pound of treatment. 

Today, while still being useful as windbreaks and shelterbelts, we are seeing an exponential rise in cedar tree populations. Where Tallgrass Prairie once covered over 170 million acres of North America, providing a vast prairie ecosystem, less than 4% remains intact; and most of this is in the Flint Hills. Thankfully, using management practices, we can mitigate the growth of the Eastern Red Cedar trees.

Gene Francis & Associates knows land and this year we are celebrating 40 years. Call us today to discuss all your real estate needs.

Farm Bill Clears Committee

Republicans moved their long-awaited farm bill through the U.S. House Agriculture Committee last week, despite opposition from most Democrats about cuts in SNAP payments and nutritional benefits that could stall further advancement.

The massive $1.5 trillion legislation would set policy and funding levels for key food, agriculture and conservation programs for the next five years. After a marathon markup Thursday, the GOP-authored bill cleared the committee after midnight Friday, 33-21, with four Democratic votes.

The committee’s bill would increase farm “safety net” payments for some commodity crops, expand eligibility for disaster assistance and increase funding for specialty crops, organic farmers and dairy farmers.

It is expected to cost $1.5 trillion over 10 years. A title-by-title summary of the 942-page bill can be found here.

Historically, farm bills have brought together lawmakers across party lines, uniting on regional interests. The massive bill stitches together support for agriculture producers, energy and conservation programs on farmland and food and nutrition programs for families in need.

The farm bill has to remain budget neutral, so lawmakers must fit their proposals into a baseline projection of how much the government would spend over the next 10 years if the current farm bill was extended.

The farm bill is generally considered “must-pass” legislation. Lawmakers must rewrite the sweeping legislation every five years to set mandatory funding levels and policy. The current farm bill expired at the end of September 2023 but most programs have continued through extensions.

The current extension lasts until the end of September, but it is not clear if lawmakers will make that deadline – especially as attention turns to election campaigns over the summer and fall. Senator Tracey Mann is diligently working for the next farm bill to continue for a 10 year period and make adjustments during the time if needed.  

While the House committee engaged in 13 hours of debate on the farm bill markup, both Democrats and Republicans acknowledged that there would need to be more negotiations on the bill before it could become law. 

Contact us for all your real estate needs for our expertise as continued changes arise.

Keeping the Farm in the Farm Bill

Republicans on the Senate Agriculture Committee proposed a $4 billion injection into the crop insurance program so that the government would pay a larger share of the premiums on policies offering the highest levels of coverage. “We need more farm in the farm bill to get it passed,” said Sen. John Hoeven of North Dakota, the lead sponsor, on Tuesday.

Leaders of the Senate and House Agriculture committees were at an impasse over calls for more farm support spending — keeping “the farm in the farm bill” — when funding is tight. Democrats such as Senate Agriculture chairwoman Debbie Stabenow adamantly oppose cuts in climate or SNAP funding.

“Everybody is working in good faith, trying to get it done,” said Arkansas Sen. John Boozman, the senior Republican on the committee. But one of his colleagues said, “We’ve got to stick to our guns on this,” meaning an expansion of federal spending on crop insurance.

Under the so-called FARMER Act, the government-paid share of the premium would increase by roughly 10 percent for higher coverage levels, as an inducement to farmers to “buy up” coverage, said Hoeven. The government share of the premium also would go up for the Supplemental Coverage Option, an add-on to policies that provides more protection against losses.

The FARMER Act rejected one of Stabenow’s suggestions for the farm bill. In January, she said the way to provide higher levels of insurance coverage and streamline federal programs was to give farmers a choice: They could enroll in USDA crop subsidy programs or they could buy a highly subsidized revenue insurance policy.

At present, upland cotton is the only commodity where that sort of policy, known as STAX, for Stacked Income Protection Plan, is offered and growers are barred from enrollment in crop subsidy programs. The government pays 80 cents of every dollar in STAX premiums, while it pays 62 cents of each $1 in crop insurance premiums, on average. STAX provides coverage for up to 20 percent of expected crop revenue in a county or group of counties.

Hoeven and his cosponsors proposed the opposite of Stabenow’s suggestion — farmers could purchase “enhanced crop insurance coverage” if they wish, as well as signing up for the Price Loss Coverage or Agriculture Risk Coverage subsidies.

Cost of the FARMER plan was estimated at $4.2 billion over 10 years, said Hoeven. The most recent Congressional Budget Office projections say crop insurance would cost $124.7 billion over the same period.

“Ultimately, producers buying higher levels of coverage will lessen the need for ad-hoc disaster assistance in the future,” said Hoeven.

Farm groups have given priority to expanding crop insurance coverage and raising reference prices, which are the triggers for subsidy payments. Boozman and Hoeven said the farm bill needed to address reference prices as well as crop insurance.

The Environmental Working Group (EWG), which favors larger spending on stewardship programs, said the FARMER Act was a sop for the richest U.S. farmers. “The Senate should focus not on increasing crop insurance subsidies but instead on reducing the costs of the crop insurance program and protecting conservation funding for climate-smart agriculture,” said Anne Schechinger of EWG. “Only about 20 percent of farms participate in the crop insurance program but federal conservation programs are open to all farmers.”

A Shift In Prominent Crops in Kansas

The United States Department of Agriculture’s Economic Research Service reported earlier this week that “the number of wheat farms in the United States has declined substantially over time. Since 2002, the total number of wheat farms fell by more than 40%, from 169,528 in 2002 to 97,014 in 2022, and also more than 7% lower from 104,792 farms in 2017.”

In addition to the decline in wheat farms, “wheat production is down slightly, but has been variable year to year,” the USDA ERS reported. “Annual wheat production ranged from about 1.6 billion bushels in marketing year 2002/2003 to as much as 2.5 billion bushels in 2008/2009. Notably wheat production has not topped 2.0 billion bushels from 2017/2018 to 2023/2024.”

Another “major reason for the decline in wheat production and area over time is that wheat has become a rotational crop that is mixed into rotations with more profitable corn or soybean crops,”the ERS said. 

According to USDA ERS commodity cost and returns estimates, “production less operating cost, which is a measure of profitability,” has grown a little more than $83 to $185.26 per acre for wheat from 2017 to 2022. For corn, that same measure has more than doubled to $654.46 per acre, while for soybeans it has grown to $441.53 per acre in 2022.

“Additional factors include changing farming practices, the development of seed varieties for corn and soybeans that are more conducive to growing conditions in areas traditionally planted to wheat, and other technological developments,” the ERS reported.

As of 2022, Kansas now accounts for 15% of all wheat farms in the United States, followed by North Dakota and Ohio. Only a handful of states had increases in the total number of wheat farms from 2017 to 2022, including Pennsylvania, Wisconsin, Georgia, Mississippi, and Kentucky, the ERS said.

The ERS also reported that “the number of smaller farms is shrinking at a faster rate than larger farms. Between 2017 and 2022, all but the largest wheat farms (specifically, those from 1 to 2,999 acres) saw reductions anywhere from 4% for farms between 100 and 249 acres to 11% lower for farms in the 250-to-499-acres category.”

“Overall, the 2022 Census of Agriculture shows a continuation of a much longer-term trend,” the ERS wrote. “The number of wheat farms continues to shrink across all but the largest farm sizes. The average farm size continues to grow as the number of smaller farms declines and larger farms increase in number.”

Contact GF&A today to assist with all your real estate needs.

From Touchdowns to Turf: How Agriculture Shapes Every Aspect of the Super Bowl Experience

A little football game called the Super Bowl was played for the 58th time this month. If it weren’t for farmers and ranchers, millions of people would have to find another way to spend their Sunday evening. How does agriculture impact the Super Bowl?

Money changes hands, whether in the purchase of game tickets (average price $9,720), food, or the loss of a bet. Did you know 75% of that dollar bill you just used to tip the pizza delivery guy is made of cotton?

According to the National Retail Federation, 192.9 million adults plan to watch the big game, spending a total of $16.5 billion, or an average of $85.36 per person. While some of those expenditures will go to things like team apparel, decorations, new TVs, and furniture, a whopping 79% will be spent on food and beverages, all of which come from farms. In fact, Americans eat more food on Super Bowl Sunday than any other day of the year except for Thanksgiving.

Super Bowl Sunday is one of the biggest days for pizza sales in America. According to The American Pizza Community, a coalition of the nation’s largest pizza companies, 12.5 million pizzas were sold on the day of the big game last year. What would pizza be without wheat, dairy, meat, fruit, and vegetables, all grown or raised by farmers?

The National Chicken Council estimates 1.45 billion chicken wings will be eaten Sunday. That’s enough wings to go around the Earth three times.

More people will grill on Super Bowl Sunday than any other day besides the Fourth of July. There will be an estimated 14 billion hamburgers served on game day, possibly topped with some of the 12 million pounds of bacon that will be eaten.

Agriculture also affects the game itself. The turf in Allegiant Stadium in Las Vegas is a hybrid drought-tolerant Bermuda grass. The grass is rolled outside when the grass needs sunlight or the stadium is being used for other events. 

The earliest football uniforms were made of sheep’s wool. The wool was durable and held up to the physical play. Helmets today are made with polycarbonate, but the first helmets worn by players were made of soft leather.

Leather is also used to make the ball. Even though it’s often called a pigskin, footballs are actually made of cowhide. Wilson is the official supplier of footballs for the NFL: 120 of its footballs will be used in Sunday’s game. One cowhide will make 10 footballs. Not just any cowhide is used; it comes from cattle raised in Iowa, Kansas, and Nebraska.

Whether it’s the stadium, the field, the ball, or the food, one thing is clear: no farms, no Super Bowl. If you’re in the market to buy, sell, or invest in real estate, our dedicated team is here to assist you every step of the way. 

GF&A Celebrates 40 Years

This year Gene Francis & Associates is celebrating 40 years as real estate brokers and auctioneers. Since 1984 we have been connecting buyers and sellers. It is with a huge amount of gratitude to all of you that we keep up our high standards in customer experience. Join us as we celebrate this year and more to come.

Navigating the Farmland Market: Opportunities and Challenges Ahead

For the first time since 2001, interest rates are rising faster than farmland values, creating a potential obstacle to land purchasers, said the Kansas City Federal Reserve Bank. With interest costs now above average land value appreciation, farm operating profits will determine the magnitude of returns for financed land.

Although growth in farmland values held firm in 2023, higher interest rates and a moderation in agricultural commodity prices have cut potential returns and could dampen demand for farmland — and thus farmland values — going forward.

Meanwhile, ag bankers said in a Federal Reserve survey that the volume of new non-real estate loans was 15% lower during the final quarter of 2023 than during the same period in 2022. While the number of new loans was slightly higher than in fall 2022, the amount borrowed, when adjusted for inflation, was the lowest since 2017.

Elevated production costs, higher interest expenses, and lower commodity prices have increased financing needs of many producers; however, strong liquidity built up in recent years likely supplemented borrowing needs of some operations throughout the year.

As Mark Twain coined, “Buy land, they’re not making it anymore”.  Contact us today to assist with your land purchases and sales.

GF&A Provides Land Value Assessments

While price increases for US farmland were still observed in 2023, signs indicate the market is starting to cool. Statewide farmland prices in Kansas continued to escalate in the first half of 2023.  The continued growth in prices was supported by a number of factors, such as farm incomes and liquidity. 

The experience, however, was not shared across all regions or quality grades. Depending on the area of the state, some found modest increases while others found declines due to climate and soil morphology and topography. Commodities are likely to be impacted by ongoing conflicts in the Middle East and Ukraine. More than likely there will be a boost to the economy leading up to the election. Yet, it is encouraged for producers to take a seasonal approach to selling. Future prices and values are very uncertain right now. 

The U.S. Federal Reserve continued efforts it began in 2022 to slow the rate of inflation. Since interest rate increases began in March 2022, the federal funds rate has been increased 11 times, upping the rate 5.25 percentage points.

Dr. Stanley Longhofer, Director of the Center for Real Estate at Wichita State, recently shared the forecast for 2024. He believes that there should be a tightening of the spread between mortgage rates and the 10 year treasuries. Then once the housing component of the CPI slows that will help reduce rates. We should see a settling of loan rates and to drop 2% by the end of 2024. 

As Mark Twain said, “Buy land, they’re not making it anymore”. Contact us to seek professional advice and assistance when buying or selling land. Gene Francis and Associates is here for you!

Sumner Co

Farm & Home Realty LLC of Cheney Merges with GF&A

We are excited to announce that Farm & Home Realty LLC of Cheney, KS, has officially joined forces with Gene Francis & Associates. With this merger a long-time competitive business friendship is now one entity.

The merged companies will continue bringing decades of experience and considered attention in taking care of real estate and auction needs.

Watch for the Farm & Home Realty Cheney office to receive the GF&A logo and sign soon. In the meantime, reach out to Jami Viner, Cheney Branch Broker; Roger Zerener, Associate Broker; and John Hillman, Associate Broker & Auctioneer as they continue to service their new and long-time clients for Gene Francis & Associates.

You can now find GF&A associates around the state and offices in three locations:
12140 W. K-42 Hwy in Wichita | 316-524-8345
2029 Vanesta Place, Ste. 22 in Manhattan | 785-320-7887
229 N. Main in Cheney | 316-540-3124
GFrancis, Zerener, Hillman, TFrancis

The Other A.I. in Farming

Mention AI to any seasoned cattle breeder or livestock farmer, and they will likely reminisce about the remarkable benefits of artificial insemination. Bloodlines, donor sperm quality, and the importance of genetic diversity are topics they can discuss until the cows come home—literally. However, in recent years, conversations within the farming community have shifted towards a different type of AI: artificial intelligence and the profound technological advancements that are revolutionizing agriculture. The future of farming is undergoing a dramatic transformation, thanks to AI.

AI has also introduced novel methods for monitoring and managing cattle health and behavior. By utilizing AI-driven cameras and sensors, breeders can track individual cows’ behavior, eating habits, and milking efficiency. This data enables them to promptly detect signs of distress or illness, leading to improved animal welfare and overall productivity. 

Consider drones, for instance. The first agricultural drone took to the skies 23 years ago, and since then, they have become invaluable tools for monitoring and mapping fields from above. These drones can spot damaged crops and identify areas of weed or pest infestation with precision. However, the future promises even greater advancements. Soon, there may be no need for a human operator as drones become capable of automatically precision-spraying crops. These advanced drones will also be able to land unaided, allowing an onboard robot to take soil samples. This level of automation is reshaping the way farming is conducted, making it more efficient and productive.

Once the data from cameras, sensors, and monitors is processed, analyzed, and synchronized with existing machinery, such as robotic fruit-pickers or weed-control lasers, the possibilities are endless. It won’t be long before running an entire farm from a phone becomes the norm. Already, farmers receive updates on their mobile phones during key planting and harvesting seasons, showing that the transition to mobile-based farm management is already underway.

As we adapt to this new era of farming, one thing is clear: the future of agriculture is smart, efficient, and powered by artificial intelligence.  Contact us for opportunities to buy or sell land and experience the innovations in agriculture.

Inflation’s Unpredictable Rebound: The Mortgage Market at 20-Year Highs

“Just when I thought I was out, they pull me back in!” That famous line from Al Pacino in Godfather III, tells a similar story of what’s going on with inflation. After surging to 40+ year highs in June of 2022, the closely watched inflation reading Consumer Price Index seemed to have bottomed out this past June at just below 3% but the latest reading shows near 3.70%. Traditionally, higher inflation usually pushes borrowing costs, like mortgage rates, higher. That is what we are currently seeing, with the 30-year fixed rate mortgage now at highs last seen in 2001. But inflation is just one piece of the puzzle. 

Another important piece is the uptick in government spending. There must be a tool to fund the increased spending. That tool is issuing more debt or more Treasury securities in the form of notes and bonds. Simple economics tells us that if there is more supply then there is demand, and in this case in the form of added bond supply, prices tend to decline which has pushed yields and borrowing costs higher. The 30-year fixed rate mortgage is now just above 7%.

A spokesperson from Freddie Mac says, “Mortgage rates continue to linger above 7% as the Federal Reserve paused their interest rate hikes. Given these high rates, housing demand is cooling off and now home builders are feeling the effect. Builder sentiment declined for the first time in several months and construction levels have dipped to a three-year low, which could have an impact on the already low housing supply.” Land rates are even higher; however, there is still a large amount of cash flowing.

With so much negativity, could bond yields finally be attractive for investors? Could the market be at a point where it pivots and rates head lower? Or is the enormous amount of supply too much to get sopped up and rates must remain higher for longer? Time will tell.

Bottom line: Although rates are high, and inventories are low, people still need a place to live, no matter what the cost. You may not be able to afford a big mansion, but there are opportunities out there if you look hard enough.  They also aren’t making any more land! Like Louis Sachar once said, “Nothing in life is easy. But that’s no reason to give up. You’ll be surprised what you can accomplish if you set your mind to it.”

WOTUS Rule – Recently Updated

The WOTUS Rule, which stands for “Waters of the United States,” is an important environmental regulation that defines which water bodies are protected under the Clean Water Act. In essence, it determines the extent of federal jurisdiction over bodies of water, including streams, wetlands, and other water sources. The rule’s intent is to help maintain water quality and seeks to ensure that activities impacting these waters are properly regulated. As a landowner, it is important to stay up-to-date on the latest changes to the WOTUS Rule. 

The original WOTUS Rule was established in 2015, but it has faced ongoing legal challenges and controversy. To clarify the definition and provide more certainty to landowners and other stakeholders, the rule has recently been revised. Understanding the basics of the WOTUS Rule  helps landowners and land buyers navigate their responsibilities and obligations. By staying informed about the updated rule, landowners can ensure compliance and contribute to the preservation of clean and healthy water for future generations.

The original rule, implemented in 2015, faced controversy and confusion due to its broad definition of protected water bodies. The revised rule aims to provide a more precise and understandable definition, giving landowners a better understanding of their responsibilities and obligations. By revising the rule, the government aims to strike a balance between protecting the nation’s water resources and allowing for responsible land use and development. 

One of the main changes is the narrowing of the definition of protected water bodies. Under the revised rule, only four categories of water sources are considered “waters of the United States”: traditional navigable waters, tributaries, certain ditches, and certain lakes and ponds. This change provides more clarity and specificity. Another important change is the elimination of certain exemptions and exclusions, which means that more water sources may now be subject to regulation. Landowners must also take note of the revised definition of “adjacent wetlands,” as it impacts the extent of federal jurisdiction. 

With the new rule, landowners need to be aware of the four categories of water sources that are considered “waters of the United States,” which include traditional navigable waters, tributaries, certain ditches, and certain lakes and ponds. This means that landowners may have to obtain permits for activities that could impact these water bodies, such as construction, drainage, or discharges. Additionally, the elimination of certain exemptions and the revised definition of “adjacent wetlands” mean that more water sources may now be subject to regulation. 

To comply with the revised WOTUS Rule, landowners can take several steps. First and foremost, they should familiarize themselves with the specific water bodies that are now considered “waters of the United States”. This will help them understand the extent of federal jurisdiction and whether their land or water resources are impacted. Next, landowners should assess any potential activities on their property that may impact these water bodies, such as construction, drainage, or discharges. If these activities are likely to have an impact, landowners may need to obtain permits or follow certain regulations.

By staying educated and proactive, landowners can navigate the revised WOTUS Rule and ensure they are fulfilling their responsibilities while preserving the health of our water resources. Contact us to assist in buying and selling land to ensure your goals and legalities are met.WOTUS

Incremental Sales to Win at Commodities

When it comes to marketing commodities, the greatest temptation on earth is to swing for the fence. The financial windfall and pride that comes with selling all of your product at the top of a market move is so alluring that few can turn away from the temptation of trying. The inherent problem is very few, if any, can accomplish this task on a regular basis. So what is the better option?

To use a baseball analogy, many believe the more sound principle is to consistently hit singles and doubles while avoiding strike outs. Tony Gwynn had 9,288 major league baseball plate appearances while striking out only 434 times which is an astonishing 4.7% of the time. While not generally regarded as such, he should be considered to firmly be in the discussion for greatest hitter of all time. By not striking out 95% of the time, he was an incredibly valuable asset to his team. Similarly, if you can avoid making the big mistakes when marketing your ag products, your results should be fine over time.

So how do you go about hitting singles and doubles when selling your grain, cattle, milk or other commodity? Simply put: incremental sales. When a market moves in your favor at a price that is profitable for your operation, sell some and if the market continues to move in your favor, make more incremental sales as it goes up. If the market keeps on rallying and your first sale is your worst sale, most people would be perfectly happy with this result. If the market rally turns out to be short lived and heads lower, at least you are somewhat comforted knowing that you sold some. Generally, for best results, don’t put all your eggs in one basket.

Contact our team for results to buy or sell your property!

Taxing Ag Land in Kansas

Whether the result of urban sprawl, energy production siting, or some other non-ag use, the amount of land available for farming is decreasing each year. Land no longer used for agricultural purposes yet still taxed on its potential agricultural income/productivity is an issue. According to the USDA, the total land used for farming in the U.S. decreased from 896.6 million acres in 2020 to 895.3 million in 2021.

The Kansas constitution recognizes the scarcity of land by setting apart Ag Land as the only subclass of real property that is taxed “upon the basis of its agricultural income or agricultural productivity,” often referred to as use value appraisal. All other subclasses of real property are taxed at their market value. The goal of this is to better insulate agricultural landowners from market influences outside of agriculture, which could push property taxes on agricultural land to levels unaffordable for those who wish to farm the land.

In Kansas Statutes, Chapter 79–Taxation, Article 14–Property Valuation, Equalizing Assessment, Appraisers and Assessment of Property, K.S.A. 79-1476, Kansas law provides a relatively broad definition. In general, The challenge for appraisers is that even if some tiny fraction (i.e., one acre) of a land unit is used for agricultural uses (grazing, haying, farming, timber), the entire unit can continue to be classified as agricultural land. Appraisers, though, do have the authority to split the original unit into separate “hunting/non ag,” and “ag” units. But this too could potentially be thwarted if the landowner simply cut a few trees and sold the wood, or swathed and baled a few acres on the “hunting side.” It doesn’t have to be a lot of agricultural activity, just enough.

To explore further, contact our team for more information in Kansas ag land.

Easements: A Right To Cross

Easements are an important tool in land ownership, as they allow an individual or entity to legally use the property of another. They’re a form of contractual agreement that allows for the legal use of land, without the individual or entity actually owning the property. The easement will typically define the types of activities that are allowed to take place on the property.

There are three types of easements: public, private, and prescriptive. A public easement is granted by the government and provides an individual or organization the right to use public land, such as parks, trails, or waterways. A private easement is one in which two parties privately agree on the right to use someone else’s property for their own private benefit. A prescriptive easement is established by continuous use and is the most difficult to enforce, as the individual or organization using the land must show that they have been using the property for an extended period of time and have established some sort of “right” to its use.

Once established, an easement is usually held by the same party indefinitely, unless it is sold or gifted. Additionally, easements may also expire or be terminated for certain reasons, such as when the purpose for which it was created is no longer needed. It is important to note that although an easement grants access to another party, the owner of the servient estate still maintains ownership of the land.

It’s important to understand the details of an easement agreement, including who owns the land, the scope of activities allowed, and the financial arrangements. An easement will always come with some sort of restrictions and limitations. It’s important to have an experienced and knowledgeable professional involved in the process to make sure all of the details are handled correctly. Contact us today to be of assistance in your real estate handlings.

2022 Farm Market Forecasts

Farmers walked away with higher than average profits for 2021. However, forecasts for 2022 are bleaker.

K-State just released its “Preliminary Estimate of 2021 Kansas Net Farm Income and a Projection for 2022” report. What they found was farmers will need to be prepared for what lies ahead.

“For 2021, we expect the net farm income for Kansas grain farms to be around $261,000, which is a 39% increase from 2020,” Gregg Ibendahl reported in a release with regards to the report. Idendahl and Dan O’Brien, both agricultural economists for K-State, found not all farms will experience a profit in 2021 and Ibendahl expects that 10% of farms will see negative net income. But overall, the study concludes 2021 will bring strong returns for most farmers. This will be helped by government support.

The estimates examined in the report for last year and this year examine seven areas: yields, prices, crop acres, expenses, crop insurance, government payments from the farm bill and ad hoc government payments. Projections came from an examination of 588 grain farms in the Kansas Farm Management Association database. Although expenses went up this year, many farmers had already purchased inputs like fertilizer, but as inflation continues to increase the supply chain teeters, farmers are expected to experience a decrease in profit margins.

Right now, the higher prices for grains are mitigating the increased prices for inputs, but this can change at any point. Livestock prices are expected to remain steady in 2022. Because of this economic outlook, O’Brien is suggesting more of an emphasis this year on price protection.

Our team is here to assist you with your land sales to continue to hedge your portfolio.