Washington, D.C. - Congressman Dave Loebsack announced today that he has again been named to serve on the conference committee that will negotiate the final details of the FY2013 National Defense Authorization Act (NDAA).  The committee will assemble the final legislation from the bills that were previously passed by the House and Senate.  The final product will then be voted on by Congress, before going to the President.

"I am pleased to once again be named to the conference committee.  I look forward to producing a bill that will provide the support necessary for our National Guard troops, military families, and the Rock Island Arsenal," said Loebsack.  "I will continue to work with my colleagues on both sides of the aisle to produce a strong bill that will ensure our nation is secure and our troops have the resources and support they need and deserve."

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AMES, Iowa – Average Iowa farmland value is estimated to be $8,296 per acre, an increase of 23.7 percent from 2011, according to results of the Iowa Land Value Survey conducted in November. This is the third year in a row where values have increased more than 15 percent. The 2012 values are historical peaks.

The increase is somewhat higher than results of other recent surveys of Iowa farmland value: the Chicago Federal Reserve Bank estimated an 18 percent increase in Iowa land values from October 2011 to October 2012 and the Iowa Chapter of the Realtors Land Institute estimated a 7.7 percent increase from March to September 2012.

"The difference in survey estimates could be due to values increasing more rapidly in the past few months than earlier in the year. Better than expected crop yields and the level of land sale activity due to the proposed changes in land related taxes contributed to the increasing values," said Mike Duffy, Iowa State University economics professor and extension farm management economist who conducts the survey. "The Iowa State survey samples different populations, and uses different wording than the other surveys. This could also lead to different results especially in times of uncertainty. Even within the Iowa State survey there was considerable variation in the estimates."

O'Brien County had an estimated $12,862 average value, the highest average county value. O'Brien County also had the highest percentage increase and highest dollar increase in value, 35.2 percent and $3,348, respectively. Osceola, Dickinson and Lyon counties also saw 35.2 percent increases. The Northwest Crop Reporting District, which includes all four counties, reported the highest land values at $12,890, an increase of $3,241 (33.6 percent) from 2011. "The 2012 land value survey covers one of the most remarkable years in Iowa land value history," said Duffy. "This is the highest state value recorded by the survey, and the first time county averages have reached levels over $10,000. While this is an interesting time, there is considerable uncertainty surrounding future land values."

Why Iowa farmland values are increasing

Duffy said understanding some of the causes for the current increase in farmland values is helpful in assessing the situation. Farmland values are highly correlated with farm income. As farm income increases, so will land values. In 2005, corn prices averaged $1.94 per bushel in Iowa. The preliminary estimated price for November 2012 is $6.80. Soybean prices changed from $5.54 to $13.70 over the same period. Coming into 2012 there was a general sentiment that prices would decline from their peaks. But, the drought changed this and the prices remained at high levels. How long the high prices will last is unknown.

There has been considerable variation in commodity prices over the past few years, but farm income has increased substantially. The Iowa State economist goes on to say, the increase in income has been the primary cause for the increase in farmland values, but not the only one. "There are other causes for the increase," Duffy said. "Interest rates are at the lowest level in recent memory. Farmland purchased by investors went from 18 percent in 1989 to 39 percent of purchases in 2005, but investor purchases are back to the 1989 level of 18 percent this year after decreasing for the third year in a row."

Another key component is the costs of production. In the past, costs have risen in response to higher commodity prices. This is especially true for rents. Iowa State University estimated costs of crop production have shown a 61 percent increase in the cost per bushel since 2005. Without land, the increase has been 87 percent.

Duffy believes there is still discipline in the land market, while land values have increased 64 percent in the past three years, in 2009 values did decrease by 2.2 percent. Therefore, it is prudent to be mindful of the factors that influence land values. The economist said there are several key components to watch:

• Weather related problems - both here and around the world
• Government policies - especially policies related to estate and capital gains tax rates
• The amount of debt incurred with land acquisition
• What happens to input costs - land being the residual claimant to any excess profits in agriculture
• Government monetary policies as they relate to inflation and interest rates
• The performance of the U.S. economy and economies throughout the world - which impact commodity prices, which in turn impact land values

Overview of 2012 Iowa land values

While the highest county land values were reported in O'Brien County, Decatur County remained the lowest reported land value, $3,242 per acre, and the lowest dollar increase, $521.

Keokuk and Washington Counties had the lowest percentage increase, 14.8 percent, with reported average values of $6,330 and $8,226, respectively.

Low grade land in the state averaged $5,119 per acre and showed a 20.2 percent increase or $862 per acre, while medium grade land averaged $7,773 per acre; high grade land averaged $10,181 per acre. The lowest land value was estimated in the South Central Crop Reporting District, $4,308, while the lowest percentage increase was in the Southeast Crop Reporting District with an 8.2 percent increase. The Northwest Crop Reporting District reported a 36.8 percent increase, the highest district average percentage reported. Maps showing 2012 values, percentage change and comparisons to 2011 data and additional information from Duffy are available at www.extension.iastate.edu/topic/landvalue.

The Iowa Land Value Survey was initiated in 1941 and is sponsored by the Iowa Agriculture and Home Economics Experiment Station, Iowa State University. Only the state average and the district averages are based directly on the Iowa State survey data. The county estimates are derived using a procedure that combines survey results with data from the U.S. Census of Agriculture.

The survey is based on reports by licensed real estate brokers and selected individuals considered knowledgeable of land market conditions. The 2012 survey is based on 486 usable responses providing 663 county land value estimates. The survey is intended to provide information on general land value trends, geographical land price relationships and factors influencing the Iowa land market. It is not intended to provide an estimate for any particular piece of property.

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Have you taken the Quad Cities Dining Survey yet?  The one that was published in the Fall/Winter Quad Cities Dining Guide?  

If not, the easiest way to take the survey and give us your opinions is by going online here:  

http://www.quadcitiesdiningguide.com and click on the link to the survey.

Please make sure you answer at least 15 of the questions (out of 50) and watch those buttons at the bottom - you want to hit the third one over - next page - and continue on.  

Thanks for taking part in our survey, and please pass it along to family, friends and co-workers!

"Kids Don't Have Lobbyists: Part I" is Latest Installment of Thanks in Advance Campaign

 

CHICAGO - December 11, 2012. The impact of the pension squeeze on future generations of Illinois children is the focus of a new video posted today as part of Governor Quinn's "Thanks in Advance" Internet campaign to educate Illinoisans about the urgent need for pension reform. A two-part video - "Kids Don't Have Lobbyists: Part I" - goes behind-the-scenes at a children's focus group about breakfast cereal which turns into a serious discussion of pension reform. As the gravity of the pension problem becomes clear and the kids realize their voices are not always heard, they decide to hire a lobbyist.

View the first part of the "Kids Don't Have Lobbyists" video at ThisIsMyIllinois.com or the "Thanks in Advance" Facebook page.

"Nobody has more at stake in fixing the pension problem than the children of Illinois," Governor Quinn said. "In the past decade, the pension squeeze has forced lawmakers to make deep cuts in early childhood education, after-school programs and grants for college-bound students. Tomorrow's children face a difficult future unless we act responsibly to ease the pension squeeze."

According to the Governor's Office of Management and Budget, state spending on public pensions is projected to exceed education spending by 2016. The state's pension payments - which made up just 6 percent of the state's budget in 2008 - have soared to 16 percent of the budget in 2013. That increase has "squeezed" the education portion of the budget from 30 percent down to 26 percent. The "squeeze" by pension payments on essential state services is the focus of "Thanks in Advance," which has attracted more than 30,000 unique visitors since its launch to the website.

The "Kids Don't Have Lobbyists: Part I" video joins three videos on the "Thanks in Advance" website, including one launch video and two videos by legendary "explainer" and founder of the Khan Academy, Salman Khan. Khan was named by Time Magazine as one of the World's 100 Most Influential People for his commitment to offering a "world class education for everyone everywhere". Part II will be launched in the coming days.

In April, Governor Quinn proposed a plan that would rescue the pension systems, ensure employees have access to benefits and prevent skyrocketing pension costs from eating up core services like education and healthcare. The governor's plan would fully fund the pension system by 2042. "Thanks in Advance" aims to build public awareness about the need for legislative action on pension reform in Springfield and empower citizens to make their voices heard. The legislature is scheduled to work January 3 - 8.

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