Tag Archives: opinion
More Signs Of Land Price Leveling
http://www.agricultu…jpg&type=editor DANIEL LOOKER 08/30/2013 Business Editor A report to be released next week on land prices will mirror a leveling off shown this week by an Illinois study. Rabobank will release its own report, which, like the Illinois survey, will show that land prices this year are up by about 2% to 3% over a year ago, said Sterling Liddell, an economist and vice president for the agricultural lender. A survey by the University of Illinois and Illinois society of Professional Farm Managers shows the first half of 2013 with a 2.5% to 3% year-over-year increase for good to excellent land in that state. “That is consistent with what we’re seeing as well, from both the opinion perspective as well as appraisals,” Liddell told Agriculture.com in a telephone interview Friday. Bank analysts were expecting that to happen last year as well, he said. And good farmland prices were rising at about a 2% to 3% rate until the last quarter of 2012, when concerns by both sellers and buyers over looming federal tax changes added incentives to pay more for land. Sellers wanted to avoid increases in capital gains taxes. Liddell won’t be surprised if the trend continues into 2014. “If we get lower prices on this crop, then we expect to see a leveling off into next year as well,” he said. Prices could actually decline if corn averages less than $4.50 a bushel, he said. Another big factor will be higher interest rates, which will make purchasing land more expensive and also will likely strengthen the U.S. dollar, potentially making U.S. crop exports less competitive against those of Brazil and other competing nations. That would put downward pressure on U.S. crop prices. “If we have strong increases in interest rates, it will have a very negative effect on land values,” Liddell said. That applies mainly to new sales, but a significant percentage of recent land purchases are still financed by floating rate mortgages. Liddell didn’t want to generalize about all farmland loans or disclose Rabobank’s statistics on the amount of farmland mortgages that don’t have fixed rates locked in. It’s less than a majority, he said. “There are more than would make me comfortable,” he said. Mortgages with floating rates have been less costly, but when the Federal Reserve ends its quantitative easing program to hold down long-term rates, that isn’t likely to continue. “That’s something I would recommend, that farmers look at: How do they extend these low rates?” Liddell said. Continue reading
Farmland In The South ‘Outstripping The National Average’
Agricultural land prices in the south are outstripping the national average, with non-farming investors helping push the market along and to the south of the M3 and M4 corridors. Richard Liddiard, head of farm agency for national property consultancy Carter Jonas based in Newbury, says that while the national average price per acre for arable rose to £8,193 and pasture to £6,689 the strength of the market in Berkshire and Hampshire has driven values far above that level with arable regularly achieving £10,000 per acre and pasture £8,000. The larger difference between the two land types in this region illustrates the emphasis on arable crops rather than livestock farming. “We have seen some exceptional transactions during the first half of 2013 with the larger sales being dealt with ‘off market’ and showing the strength of land as a safe haven and hedge against economic ills,” he says in his leading national market comment for the latest RICS rural market survey covering the first half of this year. “Whilst the UK economy shows signs of recovery, I am still of the opinion that we are at the peak of the market for average or less well equipped farms.” “But the best in class will still rise in value and be keenly sought by the non-farming investors who value the safe haven status and inheritance tax advantages that land offers. The number of investors buying in the area has risen by 166 per cent despite some recent suggestions that investors are baling out. It is understandable that some have been taking advantage of the healthy price growth to take their ‘profit’ and plough their cash into other opportunities which may offer chances of better capital growth in the next five to 10 years. “The rise in values comes despite seeing more farms in the market but there are some holdings that are sticking, particularly if they are overpriced or do not have strong local demand to push values higher.” “Many buyers are yeoman farmers – members of families who have been in farming sometimes for generations. They see the value of enlarging their existing holdings, particularly where a senior member of the family retires to be followed by additional family members looking to become involved in the farming enterprise.” Continue reading
Outgoing calls suspended for 3m cellphone users
Outgoing calls suspended for 3m cellphone users Haseeb Haider / 2 September 2013 Telecom providers etisalat and du have suspended the service for almost three million subscribers who were late in updating their information during the last phases of ‘My Number, My Identity’ campaign, launched by the Telecommunication Regulatory Authority (TRA). This means that a subscriber cannot make any outgoing calls, however he can receive incoming calls and text messages. Both etisalat and du have started to gradually cease their services for subscribers who were targeted during the previous stages. These subscribers were previously informed to update their information but failed to do so even after their service was suspended for three months. The total number of subscribers whose subscriptions have been cancelled is almost two million. ‘My Number, My Identity’ campaign, launched in July 2012, successfully entered its fifth phase, on schedule with the previously announced timeline, announced the TRA. The campaign was initiated in collaboration with etisalat and du to increase mobile subscriber awareness on the new registration procedures for mobile phone services. It also seeks to highlight the important role the subscribers play in protecting their SIM cards to maintain their privacy to avoid any misuse that may occur, since the registered subscriber of the number will be legally and financially accountable. The subscribers and licensees etisalat and du are participating in the process of updating information and registration in order to put into action the new policies and procedures set by the campaign which has a timeline of 18 months until the beginning of 2014 and divided into six stages in order to successfully include the whole country in the registration process. Etisalat and du have finished targeting four groups of subscribers and will now target around four million subscribers during the remaining stages of the campaign. On the launch of the fifth stage of the ‘My Number, My Identity’ campaign, Mohamed Nasser Al Ghanim, TRA Director-General said: “The campaign focuses on the procedures that will be taken by the TRA in order to ensure the transparency in dealing with mobile subscribers and protecting their privacy if misuse occurs by users who use mobile services not registered under their names.” According to latest statistics registered during the month of August 2013, more than 12 million subscribers have registered and updated their data packages. This number continues to increase as more subscribers register. Al Ghanim called upon subscribers to register and update their data in order to avoid disconnection of their service, saying: “The licensees suspended the service for almost three million subscribers who were late in updating their information during the last phases of the campaign. He added: “The TRA encourages e-registration and encourages the licensees etisalat and du to make sure the facility is available to e-register which goes in line with the new registration procedures and to smoothly facilitate the process.” He said: “Companies can arrange with etisalat and du in order to register a large number of subscribers through one visit to the company’s office, in order to facilitate the registration process for subscribers who may find it difficult to do so individually.” The TRA confirmed that the current and targeted numbers mentioned above are approximate numbers that may increase or decrease, as the total number of subscribers in the telecommunications sector is subject to change as it is controlled by several factors such as the decrease due to cancellation of many subscriptions or the recycling of numbers by operators. haseeb@khaleejtimes.com Continue reading
