Drought humbles the Mighty Mississippi

The 2012 drought has already wreaked havoc on the agriculture industry and shows no signs of stopping. Now, the industry prepares for another drought-inflicted blow.

Due to the decrease in rainfall over the past year, the Mississippi River is on the verge of shutting down for nearly 200 miles spanning from Cairo, Ill. to St. Louis, Mo.

Currently, the Mississippi River is holding at 13 feet deep and near record level lows, but if the water level drops below nine feet deep, it will be forced to close to barge traffic. Shallow waterways prevent barges from moving up and down the river. Andrew Walmsley, American Farm Bureau transportation specialist, estimates on Newsline that at the current rate, the river will shut down in the middle of December. The National Weather Service, on the other hand, predicts the water levels won’t possibly drop below nine feet until January; either way, a halt in barge traffic in December and January could affect the movement of approximately $7 billion in cargo.

Source: http://stltoday.mycapture.com/mycapture/enlarge.asp?image=42849928&event=1503554&CategoryID=38578

The United States Department of Agriculture estimates the potential economic damage from a shutdown of the Mississippi River could range from $60 billion to $100 billion, meaning the damage could be more costly to the economy than that of Hurricane Sandy. Additionally, this would affect more than 20,000 U.S. jobs across industries including agriculture, transportation and manufacturing just to name a few.

The Mississippi River is essential to the agriculture industry for transportation of grain and fertilizer. The American Farm Bureau projects approximately 300 million bushels of grain and oilseeds would be delayed with the shutdown.

"It would be difficult to transport grain to ports for shipment overseas, get road salt upriver and deliver fertilizer to the Midwest for spring planting. Putting fertilizer on trucks or trains instead of cheaper barges would increase farmers' prices," said Rod Weinzierl, the Executive Director of Illinois Corn Growers Association, in a USA Today article.

Kathy Mathers, a spokeswoman for the Fertilizer Institute, shared in a New York Times article that about half of fertilizer sent to the Midwest for the spring travels up the Mississippi River. Other transportation options such as trucking and rail cars don’t have enough means to ship the large quantities that will be needed.

Last chance to take advantage of Section 179

Tax incentives that allow for generous savings on the purchase of new and used equipment will end January 1, 2013. 

Capitol Hill
Source: http://www.geoglance.com/photos/DC/1/capitol-hill

As the year comes to an end, so does the ability to take advantage of the increased tax credit offered by Section 179. The stimulus acts have greatly expanded the limits of the Section 179 deduction and have also added a one-time “Bonus Depreciation” on equipment that exceeds the deduction limit.

According to Section179.org, this deduction was intended to boost spending among small and medium sized businesses; it allows a company to deduct a significant portion of the purchase price of equipment bought in 2012 as opposed to just normal depreciation over several years. In addition to the tax credit, new equipment purchases also qualify for a bonus depreciation.

Once January 1 rolls around, the deduction amount is drastically decreased from $139,000 to $25,000 for 2013. Additionally, 2012 is the last year to take advantage of the bonus depreciation making the end of 2012 the perfect time to buy equipment.

Breakdown of purchasing an Apache in 2012 versus 2013. 

In accordance with Section179.org, a few rules go along with the Section 179 deduction and bonus depreciation. To utilize the $139,000 tax deduction, the company must purchase, finance or lease less than $560,000 in new and used equipment during the 2012 tax year. If the company purchases more than $560,000 in equipment, the deduction is decreased dollar for dollar for any amount over $560,000.

Beyond this, companies that purchase new equipment qualify for the added bonus depreciation which allows an additional 50 percent depreciation deduction on new equipment.

To calculate the total deduction, the Section 179 deduction is taken before the bonus depreciation. Amounts not deducted by Section 179 or the bonus depreciation can be depreciated using normal depreciation.
The exception to this rule applies to businesses without a taxable profit for 2012. In this case, Section 179 does not apply, and the business is allowed to carry the loss forward while still deducting some of the cost of new equipment. The rules that apply to the Section 179 deduction can be found at Section179.org.

This is the time to jump on the Apache Early Buy Incentive Program and save on a 2013 Apache.

Get out your woolly socks and sweaters; it's going to be a cold one

A time honored tradition for many, predicting the coming winter’s forecast using woolly worms or persimmon seeds has been around for years.

The woolly worm is thought to predict the harshness of the coming winter based on the thickness of the insect’s middle band. Black bands on both ends of the woolly worm are connected by a reddish-brown middle band.

According to tradition, if the reddish-brown band is narrow, it means a harsh winter is coming. On the other hand, if a thick middle band is present, a mild winter is in store.

  

Mild Winter Prediction
Source: http://www.woollyworm.com/about-woolly-worms

Harsh Winter Prediction
Source: http://blog.beechmountainbliss.com/2010/10/wooly-worm-weekend.html

Upon closer examination of the woolly worm, it is noted that woolly worms have 13 segments which coincides with winter lasting roughly 13 weeks long. Each black band is thought to represent a week of bad winter weather.

Woolly worms are known scientifically as Pyrrhactia Isabella, and they are the larval form of the Isabella tiger moth. They have many other nicknames such as woolly bears, black-ended bears and banded woolly bears.

While there is no scientific evidence to prove that woolly worms can predict the winter forecast, it is still a fun, timeless tradition for many.

Persimmon seeds are also a well-known way to predict the oncoming winter weather. To predict this winter’s weather using persimmon seeds find persimmons grown in your area. Using locally grown persimmons are supposed to be more accurate for predicting that area’s winter.

The persimmon seeds will take on one of three familiar shapes: a fork, a knife or a spoon. A fork-shaped seed predicts a mild winter, while a knife forecasts a cold, icy winter. The spoon-shaped seed foretells an extremely snowy winter.

Source: http://www.hoosierweather.com/weather_lore.php

Kevin Covey, the Director of Service and Parts at Equipment Technologies, predicted this year’s winter based on 9 persimmon seeds he gathered from his own persimmon tree.

“Each persimmon normally has two or three seeds,” Covey said. “We found eight spoons and one knife.”

Here at Equipment Technologies, we are predicting a snowy winter based on persimmon seeds, and our woolly worms are forecasting a harsh winter.

Depending on the area you live in, there may be other traditions of predicting the winter weather.

Other ways to predict the coming winter include the Farmer’s Almanac and the National Weather Service. The Farmer’s Almanac is predicting colder than usual temperatures and more snow east of the Rockies and warmer, milder weather west of the Rockies.

On the other hand, the National Weather Service is predicting a generally milder winter based on El Nino and La Nina.