Tag Archives: state

Farmland Value Continues To Go Up

Updated: Thursday, October 3 2013, 05:44 PM CDT DAVENPORT, IA (CBS 2/FOX 28) — The value of cropland across the state of Iowa continues to be on the rise, but slowing a bit. The Land Trends and Value Survey, presented by the Iowa Farm and Land Chapter #2 REALTORS Land Institute, reported a statewide average increase of cropland values of 10.6% for the year from September 1, 2012 to September 1, 2013. This follows an average increase of 18.5% for the year from September 2011 to September 2012; and an average increase of 32.6% for the year from September 2010 to September 2011. Overall, the strong upward movement in land prices has leveled out even though we have seen growth in values over the past six months especially in the East Central District, which covers much of the local market area. “Clearly the decrease in commodity prices and the potential for highly variable yields are slowing the increases in land value especially in medium to lower quality farms,” said Eric Schlutz, Realtor with Ruhl Farm&Land and Muscatine Manager for Ruhl&Ruhl REALTORS. The survey also attributed the current land values to an increase in long-term interest rates, 2013 growing conditions, a lack of stable alternative investments, large amounts of cash on hand and the limited amount of land on the market.   For the survey, participants are asked to estimate the average value of farmland as of September 1, 2013. These estimates are for bare, unimproved land with a sale price on a cash basis. Pasture and timberland values were also requested as supplemental information. Seven of the nine Iowa crop reporting districts showed an increase in the last 6 months. For local experts, the survey results were not surprising, said Dennis Stolk, Realtor with Ruhl&Ruhl REALTORS. “The best strength in the land market continues to be in the high quality, all tillable parcels, with some easing of the growth in values of the lesser quality parcels, as well as recreation land,” Stolk said. “Future direction of land values will be highly dependent on commodity prices for corn, soybeans, hogs and cattle, as well as interest rates and the general overall economic trend. “We are positioned in eastern Iowa and western Illinois to see good stable land values and do not anticipate a drastic movement downward or upward.” Ruhl Farm&Land, a division of Ruhl&Ruhl REALTORS, is focused on the sale, purchase and marketing of land, farms and acreages. Read More at: http://www.cbs2iowa.com/news/features/top-stories/stories/farm-land-value-continues-go-up-22831.shtml Continue reading

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Sen. Udall Applauds Gypsum Biomass Plant

GYPSUM — U.S. Sen. Mark Udall said the Gypsum biomass power plant is a “win-win-win” project when he and state Sen. Gail Schwartz toured the plant’s construction site on Friday afternoon. The Gypsum biomass plant is the first of its kind in Colorado and is on schedule to go online this December. The “woody” biomass plant will produce 11.5 megawatts of electricity per year by burning dead timber collected mostly from the White River National Forest. That main fuel source will be supplemented by other sources, such as wood construction waste that normally goes to the landfill. Of the 11.5 megawatts, 10 megawatts will be sold annually to Holy Cross Energy through a 20-year agreement and 1.5 megawatts will power the plant itself. “When this goes online it will put us over the top of our goal to have 20 percent of our power coming from renewable energy by 2015,” said Holy Cross CEO Del Worley. “This will put us at around 22 or 23.5 percent renewable energy.” Udall, who serves on the Energy and Natural Resources Committee, touted the public-private project as a fine example of how to bolster the economy and help the environment while generating domestic power. “It’s a carbon-neutral, renewable energy source, it mitigates forest wildfire, it creates about 100 jobs in total and it’s going to be profitable,” Udall said. “There’s nothing wrong with profit — profit leads to reinvestment.” Eagle Valley Clean Energy LLC — a subsidiary of Evergreen Clean Energy Corporation — is the company behind the Gypsum plant, which will get the bulk of its fuel from West Range Reclamation LLC. West Range is a forest and land management company in Hotchkiss that was recently awarded a long-term stewardship contract with the U.S. Forest Service. West Range will receive $8.66 million through the 10-year contract. “The stewardship contract is at the heart of this,” Udall said. “It’s a beautifully fulfilling relationship.” Environmental health Schwartz said Colorado is 37th in the nation for utilizing biomass power but it is the No. 1 producer of biomass fuels. “We have 4 to 6 million acres of standing dead timber in our state,” she said. “We have 175,000 slash piles in Colorado that we will burn anyway. This biomass plant will help clean our forest and mitigate wildfires as well as create jobs and electricity.” Udall said the biomass plant is a market-based solution. “[Eagle Valley Clean Energy] is bringing value to forest slash and waste,” he said. Udall said the plant is carbon-neutral because the wood fuel contains carbon that is already in the environment. “It’s circulating, unlike coal, which is mined,” he said. Udall added that the biomass plant is “state-of-the-art” in terms of its filtration and monitoring systems for pollution. Dean Rostrom, a principal of Eagle Valley Clean Energy, said electrostatic precipitators will filter almost 100 percent of the ash from the burning wood fuel before it makes it into the air. “That smoke stack will look about the same when it’s operational as it does today — you won’t see anything coming out of it,” Udall said. Rostrom confirmed Udall’s statement that the company uses the latest technology to control emissions. “We exceed all air permit requirements,” he said. The Gypsum plant will burn about 250 tons of wood a day. More biomass? Rostrom said he thinks “it makes a lot of sense” to build more biomass plants in Colorado but there are several factors that have to align. “It’s a balancing act between an economy of scale and environmental sensitivity,” he said. “To date, most biomass proposals in Colorado have been 100 megawatt operations but they would consume too much [to be environmentally balanced].” Pam Motley of West Range Reclamation said it is important to find markets that are close to the wood source. “So much of the cost of wood is transporting it,” she said. “Markets need to be within 100 miles or it’s not economical and it’s not as carbon neutral because you’re trucking it so far.” That’s one of the reasons that makes Gypsum’s plant a good fit for the area — its proximity to the White River National Froest. “With modern mega-fires becoming a growing problem that threatens Colorado communities, our precious water supplies and our way of life in the West, we need to use every tool we have to reduce wildfire risks,” Udall said. “The Gypsum biomass power plant shows how we can reduce wildfire risks, create jobs and generate renewable energy sources. This biomass power plant also underscores the urgency for renewing the U.S. Forest Service’s Stewardship Contracting Authority by passing a farm bill. If Congress does not stand with me and act, job-creating public-private partnerships like this will grind to a halt.” Continue reading

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Wood Energy Plantations

Accelerated growth and local proximity are potential great advantages in wood energy trends. Posted on June 19, 2013 by Bill Cook, Michigan State University Extension Wood energy plantations may be a common landscape feature of the future. Or not. On the positive side, better-controlled wood quality and accelerated growth rate can be placed closer to wood energy mills. Volumes per acre are several times higher than natural forests. Transportation costs can be substantially reduced, which are a large part of the cost of wood procurement. On the negative side, plantations are expensive and some of the necessary commercial infrastructure and technology have yet to be developed. At this time, few markets are available to purchase plantation-grown wood. Also, resistance to insects and diseases becomes more important when planting large areas of genetically similar stock. Many wood energy production systems perform better by using wood with a particular set of specifications. Growing mill-tailored wood may be a viable option, similar to the former large wood plantations in central Minnesota that helped feed a pulp and paper mill. There many other examples across the USA and worldwide. Doing the research to figure out which genetic mix grows best on particular sites will be critical in achieving economic viability. In Michigan, there are about 8 million acres of retired farmland. A portion of that farmland may be eligible for wood energy plantations. This puts land back to work and could help support a growing Michigan industry. It is unlikely that natural forest would be converted to plantations. Varieties of willow and poplar currently appear to be the most likely candidates. Poplar may yield more useable wood than willow over time and offer the opportunity for other products. On the other hand, willow rotations occur about every three years and poplar rotations every 6-8 years. An investor may see some return in less time with willow. Poplar can be harvested with current technology. Willow will need to have a different technology imported and modified. Both species require specialized planting and tending technology. And, of course, commercial production of planting stock will need to be ramped up. Both species are planted using branch segments (eight-inch sticks), not seed. Establishing a wood energy plantation involves a process and spacing more similar to agricultural crops than to forestry. However, after the first year or two, inputs will be minimal for several decades, unlike the annual inputs for agriculture. The need for special machinery and skills might be met by a new breed of contractor or a cooperative. Few landowners will be able to afford the expense of their own planting and harvesting machinery. Wood is one form of cellulosic plant material. Cellulose is the main structural ingredient of plants. Agricultural residues may provide additional cellulosic feedstock. So might specially-grown crops such as switchgrass, Miscanthus, and other grasses. Depending upon the needs of a particular energy producer, agricultural feedstocks offer opportunities, too. However, agricultural crops have higher ash and chemical content. They are also available only certain times of the year, or need to be stored, which would be an additional cost. Annual crops require fairly high annual energy and chemical inputs. Perennial grasses have inputs more similar to wood energy plantations. Wood energy research has been ongoing for decades, but the pace, urgency, and budgets have increased over the past few years. Both Michigan State University Extension and MTU are involved with wood energy plantation research, as well as cooperators across North America and from several European nations. Research plantations dot the landscape across much of the state. The first commercial plantation in Michigan was established in 2009 in Marquette County. The drive to reduce fossil fuel consumption will likely include wood energy among the various replacement technologies. And, wood is one of the options for which Michigan holds trump cards. This article was published by Michigan State University Extension. For more information, visit http://www.msue.msu.edu. To contact an expert in your area, visit http://expert.msue.msu.edu , or call 888-MSUE4MI (888-678-3464). Continue reading

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