A Time to Be Thankful – By Jon Taylor

Thanksgiving is the time of year to reflect and give thanks to the bounty we’ve been given this past year. As you reflect on this past year and look towards the new one, ask yourself if you have the proper coverage you need for your irrigation equipment.

Are you sure that if you had a total loss that your insurance carrier would be able to replace your system or will you be stuck coming up with the difference if they only provide coverage for less than half its value? Are you sure your insurance carrier is going to be able to get your system back up and running when its peak watering season or will you be stuck waiting weeks for an adjuster to come make a decision? Are you going to be able to afford waiting while your crop burns up in the field?

These are all important questions to think about as you look towards 2016. Diversified Agrisurance can offer you a very comprehensive replacement cost product up to 35 years of age. On top of that you will have the benefit of the fastest claims service in the industry. You’ll be thankful knowing that your system can be replaced quickly with our insurance product.

Whether it’s an unfortunate claims situation or working on a new policy for a customer we continue to strive at providing the best service in the industry. We all have a lot to be thankful for and not having to worry about your irrigation equipment can be one of them.

Please call us today for an insurance quote.

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Have You Quoted Our Variable Rate Product? – By Josh Hagan

If your answer is no simply because you lived through the 80’s and would never take the chance on a variable rate loan that could hit 18% or more – I’d encourage you to read this blog. Remember that Diversified Financial is in the equipment finance industry, not real estate, so our time frame is 3-7 years on all of our loans.

2.4% (WSJ prime – 0.85%) is our current variable rate. For anyone curious, the last time that WSJ prime moved was back on 12/16/08 – basically 7 years ago. I’m not here to tell you that WSJ prime will not move again for 7 more years. In fact, the talk is that it may even go up .25% in December. However, the last 5-6 times that the Fed met they have warned about rate hikes – but didn’t feel comfortable enough about our economy to actually raise it. On our 5 year variable rate loan, it would take over 6 consecutive .25% rate hikes just to get to the same starting point as our current fixed rate loan.

I’ll leave you with a couple examples of fixed-vs-variable. On a $100,000 note with fixed rates, 3 years @ 3.75% = $7,709 interest paid. 5 years fixed @ 3.99% = $12,471 interest paid. 7 years fixed @ 4.65% = $19,746 interest paid. On that same $100,000 note at current variable rate of 2.4%, assuming no changes for time period = $4,912 interest on 3 years, $7,425 for 5 years and $9,977 for 7 years. If rates go up .50% each year, 3 years = $6,167, 5 years = $10,417, 7 years = $15,528. If rates go up .75% each year, 3 years = $6780, 5 year = $11,907, 7 year = $18,338. If rates go up 1% each year, 3 years = $7,600, 5 years = $13,409, 7 years = $21,191. **the variable assumptions were the rate increase starting in 6 months, then every 12 months after that**

If you have questions on our variable rate product, please give your Diversified Relationship Manager a call. Roughly 40-50% of our loans are being written on a variable rate, so this has been a popular choice amongst our dealer/customer base.

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Harvest Technology Efficiency – By Eric Golwitzer

The 2015 harvest season is coming to a close with over 75% of the corn and soybean crop already finished. As farmers progressed through each field this year, chances are their equipment had some pretty complicated technology aboard to help them get the job accomplished in the most efficient way possible.
Agriculture technology has come a long way in the past 25 years. Some days, it may seem like you need a computer science degree to run modern equipment, but in the end, the precision and efficiency of the machines has helped farmers generate more revenue and cut down on expenses. With new equipment sales in a current down cycle, producers are looking for alternative ways to increase yields and decrease input costs. One of those ways has come from specialized equipment attachments.
During the summer months, Diversified Financial partnered up with Precision Planting to provide a financing option for some of their incredible planter technology. With so many new third party technology companies bringing great products to the market, Diversified Financial may be the perfect financing outlet for your company or product. So if you’re thinking about adding any number of guidance systems, yield mapping software, or new planter technology, give us a call. We have been successful in finding unique financing solutions for unique technology and look forward to the next challenges that lie ahead.

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Harvest Season – By Jeff Focht

From what I read, hear and see with my own two eyes it looks like most of the U.S. is in the heart of the 2015 harvest season. Overall the weather in the Midwest has been favorable to get a good start on the corn and soybean harvest and I hope that you are in an area where Mother Nature has cooperated with you throughout the season and given you the opportunity to raise a good crop. With the current commodity prices every additional bushel or pound will be needed to generate more income to help cover the expenses this year.
Speaking of harvest, over the years I have found that in the business world we also have a harvest. It isn’t neatly defined as a season like we see in the farming community but we are able to see the fruits of our labor from the seeds that were planted months and years ago. At Diversified Financial we are always looking for ways to improve our customer experience and make the products and services that we offer to our dealers, salesmen, insurance agents and end-user customers better. Some of these “seeds” can be minor process changes and others are major projects. Wherever they fall on the scale it’s rewarding to see them being implemented and then bringing these improvements to our customers. We also encourage feedback from our customers on how we can provide better products and services. If you have ideas or suggestions please don’t be shy and let us know if you think we should be doing something differently.
On another subject, last week a group of us from Diversified Financial had the opportunity to drive to Tremont, Illinois to visit our business partner, Precision Planting. If you aren’t familiar with Precision Planting you may want to get to know more about them. This company is moving the needle in a big way by using technology and superior products to insure proper seed population, placement, depth and other attributes that will give the grower the best opportunity to increase their yields. With the cash flows being much tighter in the farm economy producers need to find ways to maximize their yields and Precision Planting has the products and solutions that will make that happen. Please check them out, I bet you will be impressed just like I was.
Thanks for taking the time to read my blog and have a safe harvest season.

Jeff Focht bio

Open Season – By Brady Fowler

Hunting season is once again upon us! It is time for those hours of preparation to pay off and give us a shot at a trophy. In my opinion, hunting takes some planning and a whole lot of luck. Hunting is a lot like farming, you can plan and prepare to get you to the part where you will be successful and then you need a little luck to make it all come together. This could mean good weather, good commodity prices and great soil, among other things. Lady luck plays a key role in the success of many people in this world, but a farmer has to believe in luck and trust it will be on their side. I can’t name how many times in my life I have been in a field with a farmer and heard them say with a little luck, I will have a great crop this year. So, as Thomas Jefferson once said, “I am a great believer in luck, and I find that the harder I work, the more I have of it.” Keep up the hard work and let’s finish the year strong!

Brady had a successful hunt.

Brady had a successful hunt.

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The Challenge – By Jeff Forsberg

It doesn’t take much effort to become a raging pessimist. There is something that we could complain about every minute of the day! The summer of 2015 could be the leading culprit to our new found conversations of negativity. It has definitely thrown some curve balls in the lives of many. Mother Nature, politics, sports, and even education can cause us to tap out at any moment.
In the west the hot topic, and I literally mean “HOT” topic, is fire. It does not seem to matter where you are at there has been a fire burning and creating a path of destruction that will never be forgotten. Thousands of homes have been destroyed. Livestock have been burned. That favorite hunting or fishing spot has been altered for years to come. All of this, causing tears to be shed, sweat to dot the brows of so many, and the chance to let pessimism ruin our communities and our lives.
Here are a couple of pictures from the Soda Fire, close to my house, that burnt 280,000 acres in one week!

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The challenge to all, find the things in our lives that cause us to have hope and optimism. Easier said than done I know, but crucial to our wellbeing. Learn and grow from our challenges. Be forever positive as we all unite and rebuild!

What’s Really Out There? – By Steve Norris

2015 is looking like one of those years where you just have to paddle a bit harder.

Crop conditions run the gammit from phenomenal to disastrous and that’s just in Illinois.

USDA seems to think that there is a lot of grain to be harvested, while several growers in Illinois, Indiana and parts of Ohio will offer differing perspectives. As always yield monitors in the combines will have the last word.

Tighter cash flow doesn’t have to keep growers from acquiring the equipment they need this year.   As always, with interest rates still at historically low levels, Diversified Financial is ready to provide fixed or floating rate financing as well as leases to help growers cash flow their operations.

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Paddling hard for bass in Iowa!

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