Spending Bill Approved & Land Values Down

Spending Bill Approved & Land Values Down plus Food Forethought. I’m Greg Martin with today’s Northwest Report.

The Senate has approved a 124.5-billion dollar ag spending bill. The measure was approved 80 to 17 Tuesday. The House passed its version in July. The agriculture spending bill for the budget year begins October 1st.

Carryover impacts of the nation's economy is one factor behind an over three per cent decline in ag land values, according to the latest USDA reports. USDA Deputy Chief Economist Jim Hrubovcak explains possible reasons behind the first such decline since 1987.

HRUBOVCAK: There is sort of a lot of influence from the macro-economic influence feeding over into agriculture. And I think one thing you have to remember is that it’s not sort of a snapshot of current feelings but what happens over the course of a year so producers attitudes may have changed more recently depending on how they feel about the economy but it does reflect that and also reflects some erosion in the profitability of agriculture. Even back in February we were forecasting a decline in net-farm income for this year so that has factored in most probably to these land value declines.

Now with today’s Food Forethought, here’s Lacy Gray.

Just about everybody has seen the movie “City Slickers”. It’s a favorite at our house. The main theme revolves around three grown men trying to find themselves and retain their youth, and ending up on a dude ranch. The underlying story is about how a couple manages to keep their ranch and make a living by diversifying into the tourist trade. Over fifty thousand farms and ranches across the nation supplemented their income through farm based recreation activities in 2008. Dude ranches were among the most popular drawing visitors from as far away as Europe. It takes a lot of grit, determination, and creativity in the effort to save the family farm or ranch. For many, that first thought of turning a ranch that’s been in the family for generations into a tourist attraction is met with a sense of trepidation, but that’s quickly replaced with the realization that not only are they managing to make ends meet and stay on the ancestral home but they’re giving visitors the opportunity of a lifetime, one that those who are raised on a farm or ranch may often take for granted, the chance to experience nature and sustainable living up close and personal.

Thanks Lacy. That’s today’s Northwest Report. I’m Greg Martin on the Northwest Ag Information Network.