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 1-1

Objectives AgriLand and American economy Social and economic trends Government policies and agriland Current trends Non-agricultural forces Agriculture and land market information 1-2

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 1-3

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 1-4

Frontier America Convert raw resources Support population Government provided protection Government brings order Customs and laws conformed to farming community. Fostered exploration 1-5

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 1-6

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 1-7

America’s Storehouse (cont.) 1890-1970, 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 1-8

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 1-9

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 1-10

Brainstorming 1-11

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 1-12

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 1-13

Land Uses : 2002 Census 1-14

USDA Farm Real Estate Values 1-15

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 1-16

Discussion 1-17

Property Rights Environmental activism and regulation Direct non-owner involvement Confrontation between landowners and environmentalists The Lucas Case Conservation/preservation strategy 1-18

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 1-19

Group Activity 1-20

Individual Activity 1-21

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 1-22

Module 1 - Review Understand how social and economic trends can help shape land markets. U.S. has become suburban nation Agricultural lands have changed 1-23

Module 1 - Review Describe how governmental policies have affected land markets Resources spent on perceived societal mission Governmental policies change with perceived mission 1-24

Module 1 - Review Describe recent trends in land prices Current prices seem reasonable Production economics does not entirely determine prices 1-25

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 1-26

Module 1 - Review Find, access, and use available information on land USDA Federal Reserve Universities Others Use Internet 1-27

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 1-28

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 1-29