1. Agricultural Land Brokerage & Marketing - Introduction
Objective:
The objective of this course is to provide a comprehensive survey of the basic body of knowledge needed to market agricultural properties effectively
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2. Objectives AgriLand and American economy Social and economic trends
Government policies and agriland
Current trends
Non-agricultural forces
Agriculture and land market information
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3. Product of Environment
Individual action
National policy and society's needs
Converting wilderness
Wealth built on land-based economy
Growth following WWII emphasized intangible assets
Institutional context for land market
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4. Product of Environment (cont..)
Policy shifted from land development
Plentiful stocks of agricultural commodities
International trade flourishes
Basic structure for land markets
Become familiar with historic forces
Understand how forces mutated
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5. Frontier America Convert raw resources Support population
Government provided protection
Government brings order
Customs and laws conformed to farming community.
Fostered exploration
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6. America’s Storehouse
By 1890 farmers are less than 50% of working population
Conserving and protecting the wilderness
National forest created
Homestead program ended
Expanding subsidies for rural America
Activities enabled farmers to produce at lower cost
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7. America’s Storehouse (cont.)
Subsidies reduced the risk to farmers
Controlled surplus of agricultural commodities
Constraints focused on historic levels of production
Ensured low-cost food
These programs contributed to higher land prices
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8. America’s Storehouse (cont.)
, America retained contacts to agriculture
Public sentiment favored American farmers
Disappearing subsidies by the early 1970’s
Improved transportation and international trade
Government envisioned market driven economy
Fewer Americans claimed links to agriculture
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9. Globalization 1972-1973 Globalization emerged
Trade energized farm economy
Competition spread
Environmental concerns emerged
Origin of food is no longer a concern
America became urbanized
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10. Globalization (cont.) Agricultural policy is uncertain
Brokerage of agricultural land becomes complicated
Owners with broad variety of objectives
Demand for agricultural production persists
Other inducements to land ownership
Basis for non-farming motives for land ownership
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11. Brainstorming
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12. Trends in Agricultural Land
Productive capabilities and location
Intangible influences
Migrates to the best producers
Driven by growing population
Development potential dominates
Affects land at greater distances
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13. Trends in Agricultural Land (cont.)
Demand from urbanites
Movement to preserve open space land
Only 20 years to accomplish the task
Opportunities for recreation
Competition from non-agricultural buyers
Varying motives for ownership
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14. Land Uses : 2002 Census
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15. USDA Farm Real Estate Values
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16. Land Values 1950 - $65 per acre 2002 - $1,210 per acre
Recorded and anticipated values differ
Recreational and environmental buyers
Agricultural demand begins to subside
Land prices have fallen short of projected trend
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17. Discussion
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18. Property Rights Environmental activism and regulation
Direct non-owner involvement
Confrontation between landowners and environmentalists
The Lucas Case
Conservation/preservation strategy
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19. Conclusion Land brokers face a dual challenge
Serve the agricultural community
Demands of non-agricultural elements
This course
Elements needed to successfully compete
Creatively adapt
Tools to evaluate the agricultural potential
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20. Group Activity
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21. Individual Activity
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22. Module 1 - Review
Understand the role of agricultural land ownership in the American economy.
Legal, economic, and social environment
Aspects of location
Attitudes of society
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23. Module 1 - Review
Understand how social and economic trends can help shape land markets.
U.S. has become suburban nation
Agricultural lands have changed
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24. Module 1 - Review
Describe how governmental policies have affected land markets
Resources spent on perceived societal
mission
Governmental policies change with
perceived mission
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25. Module 1 - Review Describe recent trends in land prices
Current prices seem reasonable
Production economics does not entirely determine prices
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26. Module 1 - Review
Explain how non-agricultural forces are influencing agricultural land prices even in remote areas
Non-agricultural buyers affect land prices
Regulations and competition have
emerged in many markets
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27. Module 1 - Review Find, access, and use available information on land
USDA
Federal Reserve
Universities
Others
Use Internet
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28. Self-Assessment Questions
Land ownership is
Governmental attitudes as revealed in its policies during the life of the U.S. have
For agriculture, the era of globalization
has meant
Current agricultural land markets are influenced by all of the following except for
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29. Self-Assessment Questions
Compared to long-term forecast land prices
According to the U.S. Supreme Court, when environmental regulations affect land management by restricting potential land uses. Land owners
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