Interest Rates -  Some months ago we suggested that you watch the 10 year Treasury rates and lock in long term interest rates as the rates begin to climb. NOW is the time! The current credit crisis with high inflation will have banks and investors looking for two things: A safe place to lend money and secondly a return that is above the inflation rate. Capital will move to where it is treated best and borrowers may very soon find that in order to borrow, they'll have to pay more. Non-government statistics indicate double digit inflation is already existing. That means long term rates will have to be in the double digits plus an added investor/bank profit. As we see it: DO IT NOW!!!

A friend and colleague, farm broker Porter Martin from Sycamore, IL writes the following in his Newsletter "Seasons": "Remember, you read it here: We expect the current massive surge of global ag investment to spur a surprising build up of grain production over the next few years. Europeans will maintain zero acreage set asides. Five million acres of CRP contracts will expire by fall of 2009. Millions of Brazilian acres will come into production. Ukraine will again become the breadbasket to Europe. China is investing in African land. The good news: We don't see farmers getting over-leveraged like they did on the runaway optimism of the 1970's". We can't agree more!

You've Noticed how much more everything costs you today. It really only means one thing: Your 1971 dollar that lost its gold backing that year, has lost its value and continues to loose its value at an ever increasing pace due to the politician's freedom to print as many as they believe are needed. Your savings account loses money every year (buying power). The money in your account at the beginning of the year plus your earned interest will buy you less at the end of the year than it would have at the beginning. Historically farm land is your best bet against inflation. Not just any real estate, not homes, not buildings, but productive ag land tops the chart!

Almost without exception, the only requests we receive to be dropped from our Ag Newsletter mailing list are when the recipient has deceased. Our total mailing list number  is over 6,500.

                         2007  Tulare County Farm & Ranch Sales

                         For 2007 a total of 211 parcels (20 acres or more) of farm and ranch property was sold in Tulare County. Total sales

                         consisted of 16,476 acres. Sales of the 5 years are shown below:

                                 Comments

                         All of the statistics are based on parcels containing 20 acres or more. In addition to the above sales there were 160 parcels

                         sold that contained from 5 to 19.5 acres each for a total of 1,543 acres.

                         The sales do not include land for development (196 acres) or land sold with existing dairies or poultry operations

                         (2,974 acres).

                         Row crop land was again the biggest seller with 35% of the land sold with citrus and 18%, nuts at 12% vineyards at 11 %

                         and rangeland and deciduous at 10% each.

                         Farmland being converted for development dropped from 2,066 acres in 2005, 986 acres in 2006 and 196 acres in 2007.

                         For the third time in 22 years, the farmland foreclosure sales were at zero in 2007.

                         Higher values per acre for 2007 reflect the fact that a lover percentage of row crop and rangeland were sold during the

                         year and a higher percentage of permanent crops. In addition it reflects considerably higher crop values.

                         Total sales and acreage were the lowest in five years which also reflects owner's reluctance to sell due to the higher

                         crop values.

Complied from Public Record by:

The Ranch Company

3904 West Caldwell Avenue

Visalia, California 93277

559-733-3232

Not Enough Money? Over the last few years we've seen several properties sell for considerably less than he market value (up to $2,000 per acre!)  If you are not totally familiar with the current land prices we suggest that you obtain an appraisal before pricing your land or employing a realtor to sell it for you.

U.S. Farmland is extremely inexpensive to foreigners whose money has much greater value than the dollar.  Will they be coming to by our farmland?  Possibly, if they can get a purchase to make economic sense.

Taxes, Taxes, Taxes! After this year' election, will we still have a 15% Capital gains tax or will it be 24% or 28%?  This could have a major impact on people considering the sale of land. At the price of ag land today one certainly would want to consider this tax angle if a sale planned in the near future.

Appraisals On Ag properties are our specialty.  We cover both the San Joaquin and Sacramento Valleys.  In addition we record all the ag property sales in Tulare County each month as to acreage, crops, location, price, buyer, sellers, etc, and publish on a subscription basis.  (call Jeanie if a monthly list of Tulare County sales is important to you.)

Want to Learn- about the Dutch Dairy Migration to Tulare county that began in the mid '60's?  John Grimmius is putting a manuscript together on the history of the migration.  This is an ongoing project with just the first 6 chapters completed, including early permitting and financing.  More to come in upcoming months.  Go to (www.theranchcompany.net) - click on "The Dutch Migration".