Tax tip newsletter

Our October issue of Tax Tips newsletter was mailed earlier this week! This newsletter is sent to current tax and records clients, if you would like to be added to the mailing list for future editions please contact your local office. We anticipate sending this out quarterly. Below is an excerpt from the newsletter, to read the whole thing click here.

Year End Tax Planning Strategies
by Michael Moloney, EA - Senior Records and Tax Specialist

As we approach the end of another year, we thought it would be a good time to talk about some of the yearend tax planning strategies available. Remember that having up to date records is a key part of the tax planning process.

Section 179 Expensing: For 2008 the Section 179 deduction has been increased to $250,000 with a purchase limit of $800,000. In other words if you have purchased more than $800,000 in qualifying property, the deduction phases out dollar for dollar on the amount over the limit. Qualifying property is “tangible personal property” (i.e. cattle, machinery and equipment, and single purpose buildings) placed in service and available for use by December 31, 2008.
For the 2009 tax year the Section 179 limit returns to the $125,000 amount (indexed for inflation) that was in effect for 2007.

For further assistance, please feel free to call a Financial Services Representative at your local office.

Congratulations to Morgan and Jon!

Congratulations to Morgan Greenwood and Jonathan Rilling on their marriage! Morgan is a loan officer in the White River Junction Office. We wish you both happiness and love always.

Interest Rates

The following letter is being mailed to members with the next monthly billing statement:

October 10, 2008

Dear Member,

The Federal Reserve (Fed), in conjunction with other global financial institutions and governments, recently responded to continued weak economic data and unsettled market conditions by lowering interest rates. The Fed cut the federal funds rate from 2.00% to 1.50% on October 8, 2008. The commercial bank prime rate decreased from 5.00% to 4.50%.

Yankee’s practice in recent years has generally been to change its variable interest rates to members on the 1st of the month following changes in the commercial bank prime rate. This time Yankee will not be reducing member variable rates.

This decision is due to current conditions in the financial markets. Nearly every sector of the credit markets has seen increasing costs and volatility in recent months, and these conditions have adversely affected Yankee’s earnings. Until market conditions settle down, we believe it is prudent to maintain member variable rates at present levels.

We recognize that many of the industries Yankee serves are also struggling with lower earnings and higher input costs. We believe that current interest rates offered by Yankee are still competitive in today’s tough financial markets. Yankee remains committed to returning excess profits to our members in the form of a patronage dividend, and we expect to pay a 2008 patronage dividend to members around March 31, 2009.

Yankee remains financially strong, as does the overall Farm Credit System. Rest assured that we continue to have funds available to meet your credit needs. We are dedicated to agriculture and the members we serve and we will continue to do our best to keep your cooperative sound and on solid financial footing.

If you would like more information on how current conditions in the financial markets are affecting Yankee and the overall Farm Credit System, you can visit Yankee’s blog at www.yankeeaca.blogspot.com. There are two postings dated September 30, 2008, titled Financial Markets, Part 1 & Part 2. We will post updates as warranted.

Thank you for your business and allowing us to serve you.

Sincerely,

George S. Putnam
President and CEO

Across the Fence 10/3

Members of the Northeast Kingdom Dairy Farmers appeared on the Across the Fence program (Link may go bad after a while) on WCAX Channel 3 on October 3rd.

For more information about the North East Kingdom Dairy Farmer Group, please contact Planning Committee member, Kelly Langmaid, at Yankee's Newport office. 800-370-2738

Click here for a complete listing of streaming videos of Across the Fence.

Ag Career Day

Loan Officer Chuck Custeau (right) from Yankee's St. Albans office, and Appraisal Analyst Robert Guay (left) from Yankee's Chazy, NY office submitted the following article:

On Friday, October 3, 2008 Cornell Cooperative Extension of Clinton and Essex Counties held the inaugural Agricultural Career Day for local high school students at W.H. Miner Institute Farm in Chazy, New York. Several local high schools participated with total attendance estimated at 100 students. With agricultural education on the decline in school systems, many students do not realize the opportunities which exist for careers in agriculture nor the paths which lead to these careers. The importance of educating local youth about the career opportunities which are available to them in agriculture is more important than ever.

Yankee Farm Credit was a proud sponsor of this event and had a career table set up with information about Farm Credit and specifically about the Career Development Trainee and Summer Internship positions which are available through Northeast Farm Credit. Our aim was to educate students about careers in agriculture which are less obvious to them than the traditional “farming” careers associated with local agriculture. We extend our thanks to Clinton and Essex Counties’ Cornell Cooperative Extension for organizing, and to W.H. Miner Institute Farm for hosting, such an important event. It was a success and plans are already being made for next year.

Across the Fence 10/3

The Northeast Kingdom Dairy Farmers approached the Across the Fence program on WCAX Channel 3 news as a way to promote the program. The taping was completed last Friday and is due to air this Friday, October 3rd at 12:10. Colleen Leonard, Dairy Specialist for UVM Extension, Meghan DuBois, Loan Officer Trainee for the Farm Service Agency, Matt Maxwell of Maxwell’s Neighborhood Farm and Eric Schneider, herdsman of Chaput Family Farms, were on the program. Colleen and Meghan are both on the planning committee for the group and Matt and Eric are two of the groups’ members.

For more information about the North East Kingdom Dairy Farmer Group, please contact Planning Committee member, Kelly Langmaid, at Yankee's Newport office. 800-370-2738