What’s up with farmland?

 Retirement Planning  Comments Off on What’s up with farmland?
Dec 182015

As the fall land auction season winds down, the answer might be nothing!

Although the really good land appears to be selling as well as it has in the past – $14,000 to even $15,000 + per acre. The same cannot be said for the simple good land. There have been sales of $11,000 per acre to as low as $8500 with apparently very similar productivity. For land that is a notch down from that sales are even harder to execute.

There is still a lot of cash available to purchase land, and even with the probability of higher interest rates, farmland buyers appear to at least somewhat more cautious. Of course the question is whether they are being cautious enough! Certainly farm income is down and it may very well take something extraneous to get it to improve to whatever a new normal might be.

The real questions might be –
What will be the new normal for farm income?
When will we get there?

Interest Rates – Going Up?

 Wealth Management  Comments Off on Interest Rates – Going Up?
Dec 072015

It appears the Fed is finally ready to move away from its Zero Interest Rate Policy! I say it’s about time.

Zero creates a real challenge for many of my clients. It is very difficult to get an even remotely reasonable low risk return for their savings.

Unfortunately, the Fed’s policy change may not result in much of a change for savers or borrowers.

The rest of the world is dealing with even lower rates and overall the world economy probably is not bad, but it’s definitely not robust.

As a result, we’re likely to see only a couple of quite modest bumps in short term interest rates. They may not even be enough to have much of an impact on longer term rates.

Questions, Concerns, Comments, Thoughts – Let me know.