Promising Trends for Agricultural Properties
As we enter November here on Wyoming ranches, plenty is happening as we ready ourselves for the winter months to come. Landowners active in agricultural pursuits are busy finishing late fall activities and shipping livestock across the country. Record high commodity prices are building excitement in farmers and ranchers – they are experiencing some of the highest returns ever for their ag products. The cattle and sheep markets are strong and setting records; grain markets are also reaching all-time highs.
What does this mean to someone involved with or wanting to become involved in the agricultural industry? Who knows . . . It is a cyclical market - with market highs come market lows. The big question we face is, “How long will the good times roll”? Word on the street is that we are heading into a lengthy period of “good times”. The value of the U.S. dollar has fallen globally, causing an increase in our export markets. It now seems to be more profitable to ship our agricultural commodities out of the country. As these products leave U.S. soil, it drives the demand for our products here at home.
Within the U.S. cattle market, indications show the mother cow number is down approximately 1,000,000 head. This sizable shortage in cattle numbers, coupled with the strong export market, predicts we should experience a strong cattle market for the foreseeable future. The sheep market is a mirror image.
The global population keeps growing, and the amount of production acres keeps falling. To me, this is easy math - with increased populations comes increased food demand. Are we starting to experience a global demand for our food products and a possible shortage? It is beginning to appear that this scenario is not too far around the corner.
As you read this, my viewpoint here in northern Wyoming is as such: “agricultural land values seem to have bottomed out and be steady with a slight increase in value”. This, and a strong agricultural commodity market, appears to be the “perfect scenario’ and indicates it is a great time to invest in land and get involved with production agriculture.
Step aside from the bustling agricultural commodity market and we are also nearing the end of prime hunting season. Many residents and landowners are actively finishing up their favorite time of year - field hunting big game, upland birds and various species of waterfowl. As an additional cash flow, a lot of ranch owners are also sharing their bountiful game with many paying clientele who wish to pursue a variety of game like mule deer, antelope and elk. The outfitting business adds a steady and prosperous cash influx to many landowners. Not everyone has the opportunity to own a prime hunting property, resulting in many paying customers coming west to experience our bountiful game.
With this fact-based optimism in the future of agriculture, and the profitability of owning ranchland, I hope everyone enjoys the last of 2011, and wish you all a blessed holiday season!
Mike Fraley and Fay Ranches represent the finest Wyoming farms and ranches for sale. Contact Us today to find out how we can help you find the perfect farm, ranch or sporting property and start living the life you deserve.
