Good News Gets February Started Right

With agriculture’s current profitability, combined with the projections of increasing demand for new equipment, we note that some are boldly suggesting we have entered a new golden era of agriculture. For example, Jim Farrell, President/CEO, Farmers National Company is outspoken with his optimism and sees several important differences between the current market and past boom and bust cycles.

Farrell recently wrote, “When comparing the current boom to the 1970s and 1980s, there are many differences. Interest rates are substantially lower than the record 19% that was being paid for operating loans in the early 1980s. Farmers are borrowing less money today to purchase land, and today’s profit margins are substantially higher than they were during much of the 1970s.”

He also took note that farm operators are doing a good job of managing their borrowing costs today, with some of the lowest debt to equity ratios of the last 35 years. Farrell said, “This strength in the balance sheet is due in part to good profits. The significant land value increases in the key grain growing areas of the U.S. play a major factor in farmer balance sheet strength.”

Great Time For Selling Equipment

The month of February always presents one of the best chances for our members to visit with their customers face-to-face. From the Iowa Power Show at the front end of the month, to splitting resources between the National Farm Machinery Show and the World Ag Expo in the middle of the month, and wrapping up with the New York Farm Show or the Triumph of Agriculture Expo, we believe members will continue to find shows well attended and customers ready to make purchasing decisions.

While members are working farm shows we ask that you support our Association in two ways: Display our FEMA Member Logo decal on your equipment and mention the Association and our upcoming Spring Management Clinic in Biloxi, Mississippi’s Gulf Coast to other exhibitors.

If you’re having problems keeping up with all the upcoming shows or would like a complete farm show list, visit FarmEquip.org/farm_shows.

Good News On The Labor Front

In 22 states, workers currently have the freedom under “Right-to-Work” laws to decide whether or not to pay union dues and now Indiana is poised to become the 23rd state on that list, and the first right-to-work state in America’s industrial heartland.

Last week, Indiana’s House passed a right-to-work bill after weeks of political maneuvering by pro-union politicians hoping to stop the proposal in its tracks. The legislation is expected to quickly pass a final vote in the state’s Senate, and Gov. Daniels (R) has promised to sign the bill into law. Expect to see dozens of labor unions protesting the passage, with announced plans to “occupy” the Super Bowl which is held in Indianapolis this weekend.

Working On Projects Of Common Interest

This week we added the voice of our Association to many others calling on congressional leaders to include the bonus depreciation provision in the House-passed version of H.R. 3630 in final legislation. This provision would allow businesses to deduct 100% of the cost of capital investments made in 2012.

Bonus depreciation, which is simply a timing change allowing taxpayers a benefit now rather than later, draws broad, bipartisan support and was included in the President’s American Jobs Act legislation last Fall. We hope to see quick passage of these important provisions.

Spring Clinic Discount Deadline Feb. 24

This year’s Spring Clinic provides a great opportunity to meet with fellow industry executives at great savings. The room rate for the Beau Rivage Resort and Casino is $99 and we are also offering very attractive discounts for members who register prior to February 24. Register today at FarmEquip.org.