Big news!

[Bob Bancroft]

Farm Credit has lowered the interest rate on my line of credit from 8.5 to 8.25! I'm so glad I'm not paying interest.

 

[Blackhole49]

My CD's have gone from 5% to 3.9% paid.

 

[Alvin 41]

Farm Credit has lowered the interest rate on my line of credit from 8.5 to 8.25! I'm so glad I'm not paying interest.

Mine lowered to 8.0% December1 ,but unfortunately I,m still paying .

 

[Sean Feeney]

My CD's have gone from 5% to 3.9% paid.

HYSA 4.4%

 

[farmersamm]

CD's, and T Bills, while temporarily appearing to be lucrative, have done what fixed income generally does........................locks the investor into an instrument that's somewhat non liquid. This is of consequence when markets shift, and interest rates shift.

UGIF(The Uranus Global Index Fund) invested heavily in Energy during the 2020 crisis, took huge profits when the vaccines rolled out, and rotated into Banks, and other Financials. While at the same time buying REIT's, MREIT's, and other beaten down sectors, during the 2022-2023 melt down. I should note that the Russell is my benchmark........The Fund being heavily weighted towards small caps.

The equities, while weak during this period, continued to pay dividends........without missing a beat. The Fund currently draws about a 6.5% dividend yield. The Lemmings, as they usually do..............................did what was expected.

Consequently The Fund was able to establish Bank positions that paid upwards of 9% dividends due to the selloff. These were not dividend traps. They are solid companies who's stock price dropped due to sentiment........sending dividend yield skyrocketing. The Fund continues to hold these stocks.............which have rebounded in value. (Although there are clouds on the horizon)

So, the lesson here is.........................constant movement of money from one asset class to another can sometimes result in a net zero situation. Equity holders, those with discipline, saw their stocks not only continue to pay dividends in excess of Treasury paper, also saw the value of the assets increase as we came out of the woods.

I see, like I said, storm clouds on the horizon. Consequently, The Fund has taken profits on some positions, now holding that money in Cash. It's assumed, nay predicted!!, by the boys in the Quant section at The Fund, that we will soon see some exciting buying opportunities. I'm looking for a serious melt down in the coming 2 years. While the opportunity cost of Cash can be high........the ability to have readily deployable dry powder, during market panics, more than makes up for a few quarters of 0 yield.

 

[Bruce from Can.]

While some will be borrowing money to buy crop inputs at 8% interest this spring to plant their crops, I take advantage of a different approach. I can pre pay for fertilizer at our Co-op in December, and they will pay me 4.7% interest on my money until the date the fertilizer is applied. It cost money to farm with other people’s money. Thankfully I can afford to not borrow money to gamble on weather and crop prices.

 

[casecollectorsc]

While some will be borrowing money to buy crop inputs at 8% interest this spring to plant their crops, I take advantage of a different approach. I can pre pay for fertilizer at our Co-op in December, and they will pay me 4.7% interest on my money until the date the fertilizer is applied. It cost money to farm with other people’s money. Thankfully I can afford to not borrow money to gamble on weather and crop prices.

I have to give the elevator a bag full of money Monday to pre pay this spring's fertilizer bill. Don't get any interest though. Money moving out fast as we bought a pick up truck the last days of December also....

 

[Bruce from Can.]

I have to give the elevator a bag full of money Monday to pre pay this spring's fertilizer bill. Don't get any interest though. Money moving out fast as we bought a pick up truck the last days of December also....

That big bumper on the front to keep the deer from plugging up the fins in the radiator?

 

[TerryfromSWIowa]

While some will be borrowing money to buy crop inputs at 8% interest this spring to plant their crops, I take advantage of a different approach. I can pre pay for fertilizer at our Co-op in December, and they will pay me 4.7% interest on my money until the date the fertilizer is applied. It cost money to farm with other people’s money. Thankfully I can afford to not borrow money to gamble on weather and crop prices.

Bruce, I think that is pretty impressive for a guy that struck out on his own. Usually takes a couple generations working together to get to that point. Good job!

 

[Bruce from Can.]

Bruce, I think that is pretty impressive for a guy that struck out on his own. Usually takes a couple generations working together to get to that point. Good job!

Thanks, but I was never alone, my wife has always contributed to our farm. Going to the barn to help with milking chores, feeding calves that sort of thing and doing the book work while keeping an off farm job as a librarian. Hard work will set you free is true, and two horses pulling together in the same direction will also pull a heavier load. Provided they are both leaning into the harness, lol.

 

[casecollectorsc]

That big bumper on the front to keep the deer from plugging up the fins in the radiator?

Yes it is! Just about got one on a bridge with the wife's van a couple weeks ago.