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Financial Conversations with Fitz #33 - The Local Economy - 09/09/2009

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Crops are probably just about done growing.  The beans really are changing.  Corn needs a little more energy in the ear.  Degree days are 1,993 in Kanawha.  We are behind 439—about 70%—at this point.  With 10-18 DGD/day, that puts us at October 16th for 2,850 DGD.  Great full moon this weekend.  Next full moon is October 3rd.  Hold your breath…Grain Prices are volatile.  Fall corn is about $3+ and beans about $10.00.  Keep close track!!!!! 

With all the commotion of bail-outs and Wall Street problems the last year, let’s talk about what we do best in Iowa.  Bail-out programs are finished for the most part, but we won’t notice much on our end.  Cash for Clunkers did move a few cars locally.  Forest City did receive about $513,000 in federal funding that the State of Iowa received and distributed locally.  Thanks to the committee that worked on that.

Do you realize that with the price of grain and our projected production levels, we are about to harvest a financial yield in Iowa of around $12-billion!!!!!  Oh, we will still worry until it is in the bin.  We will watch the monitor go from 0 to 250 in a run across the field and frown and smile in the same round.  There are still many challenges ahead for the grain producer, with cost rising but this crop is pretty well paid for except for drying and harvesting costs.  I have also been to several co-op meetings lately, and they have passed out over six figure totals for dividends that come direct to our community.  Forest City’s is Sept 15th, and there are several more in the area as well.  Our rural communities can look at this amount of money going through our local financial institutions.  Author Peter Forbes said, “Whole communities share their own wealth through their belief in civic engagement and the commons, and its members share their wealth through neighborliness.  Whole communities do not need to hoard anything.  A whole community knows how much is enough.  A healthy, whole community can take care of itself, but it does not have hard boundaries.”

We survived the ‘80’s when our neighbors and communities were directly affected by the Farm Crisis.  Our community groups came together to figure out a way to survive and sustain.  Oh sure, there were some tough casualties, but overall we came through it.  Your local TSB community bank is solid and in good shape to help you weather the national economic storm.

Remember that you should deal with people in community banks and organizations.  When you work with them, you know that you are working with people you will also see at ball games, church, or community events.  So, if in doubt give us a call.