The Hancock-Henderson Quill, Inc.
Greetings to ever one in Western Illinois and all readers of The Quill.
Harvest progresses rapidly and yields are good. Is life good or what?
Ya sez what about prices fer them good yields?
Well, about a decade ago or so some rural local farmer folk made plans ta shore up grain prices by their own investment initiative. They invested in and developed the industry of ethanol, utilize'n corn to make it, clean up the air, create a balance of trade for the U.S. and lessen our dependence on foreign oil from countries that breed individuals who openly declare their will ta destroy our country, our way of life, our government, our faith, and label us as infidels worthy of nothing more than immediate and cruel death.
As such, the industry has grown in-spite of strong opposition from "Big Oil" of foreign ownership, national livestock groups, California radicals, grocer manufacturers, motorcycle groups, Marine recreational folk and many other ill informed groups.
Who knows how low commodity prices would be this fall, were it not fer the demand created by the wage of corn in the manufacture of ethanol.
The air is cleaner in the big cities and MTBE, ethanols substitute, is no longer needed in our fuel supply to pollute our ground water as a known carcinogen fer generations ta come.
And of course, we all know grocery prices have crashed lower, correspond'n ta the crash in commodity prices, their main basic input!!??
At least that was their song and dance story when they so strongly opposed rural prosperity derived from higher commodity prices.
It used ta be said if'n ya wants ta hurt a farmer - destroy his mail box. That was back in the days before government payments were deposited directly ta the bank which avoids the danger of destroyed mailboxes ta hurt the farmers income.
Well, the mail delivery person sez there was a lot of envelopes delivered ta rural mailboxes, in these parts, with a local Burlington ethanol plants name on it. So, the boys and I knows that the Rodeffers has invested in that plant called Big River Resources.
See'n as how we recalls some negative remarks concern'n that project be'n risky we asked Dessa ta find out what them recent envelopes were all about and how the investment has turned out. We figurers she has an inside track see'n as how she is a reporter used to gather'n facts and figures and as an investor could get the correct answers. Here is what she reported back to use and we's share'n it with you folks with her permission.
She sez a decade ago the promoters of Big River was point'n out choices a farmer has. He could invest in a combine or tractor and in ten years his investment might be depreciated out.
Or he could invest the same value in himself through a value added project which could inflate. There were tax advantages with the investment.
Dessa sez if'n the money needed to buy a combine ten years ago were put into the Big River value-added project they would have received the full value back in three years. This year alone (2014), dividends paid exceeded the value of the combine (original investment).
A local bank loaned the value required ta buy the stock fer five (5) years, interest only due. The stock paid fer itself in three years. Large investors received a 3¢/bushel premium fer their corn as well as an additional stipend for 35 miles from the plant of 8¢ per bushel premium on their committed bushels.
So thats all well and good we sez to Dessa but hit us with some facts we can digest. Here's what she found:
Facts & Figures
Sixty two (62) million dollars of dividends were paid last week hence the explanation fer so many envelopes with checks in them in the mail.
Additionally Dessa found:
Some more interest'n facts she gave us:
Prices have declined this year due to government intervention and resulting uncertainty as well as anticipated large crop production.
Well, we sez to Dessa, that's not bad fer a small handful of local hayseed farmers in western Illinois and south eastern Iowa who stuck their neck out to invest in the future of agriculture fer the next generation.
But, in reality, she hit us with too many facts and figures fer those humble ole one room school house educated clod bust'n, cattle herd tend'n farmers ta comprehend.
We're a gonna have ta go ta our banker friends ta help us understand the depth of the answer she gave ta our question.
In the meantime, simply put, it seems ta the boys those checks in the mail might be a better source of revenue than that for the government with all its politics etc.
Money pumped right back into our local communities through dividend checks and increased corn value.
As fer me and the boys, we's a gonna be more careful the next time we thinks about ask'n Dessa ta gather information fer us.
The boys sez there have been several incidents and close calls involving semi's, and one tragic fatality along Illinois 94 in Henderson County involving a good supporter of the area, Larry Anderson. His loss will be felt, we are sure and prayers go out to the family.
To all young or old traveling the highways during harvest, it is hard for heavy semis to stop quickly and extra caution should be taken. Also, watch out fer them little Trick or Treaters this weekend.
Hope'n ta see ya in church this week. Where ever ya is, what ever ya be a do'n, "BE A GOOD ONE"!
Keep on Smile'n
Catch ya later