Warning: Use of undefined constant DATABASE_SERVER - assumed 'DATABASE_SERVER' (this will throw an Error in a future version of PHP) in /nfs/c05/h04/mnt/71392/domains/lafayette-online.com/wp-config.php on line 12

Warning: Use of undefined constant gns_autobuild - assumed 'gns_autobuild' (this will throw an Error in a future version of PHP) in /nfs/c05/h04/mnt/71392/domains/lafayette-online.com/html/wp-content/plugins/gn-xml-sitemap/main.php on line 37

Warning: Use of undefined constant gns_autobuild - assumed 'gns_autobuild' (this will throw an Error in a future version of PHP) in /nfs/c05/h04/mnt/71392/domains/lafayette-online.com/html/wp-content/plugins/gn-xml-sitemap/main.php on line 38

Warning: "continue" targeting switch is equivalent to "break". Did you mean to use "continue 2"? in /nfs/c05/h04/mnt/71392/domains/lafayette-online.com/html/wp-content/plugins/gravityforms/common.php on line 1121

Warning: "continue" targeting switch is equivalent to "break". Did you mean to use "continue 2"? in /nfs/c05/h04/mnt/71392/domains/lafayette-online.com/html/wp-content/plugins/gravityforms/common.php on line 1158

Warning: "continue" targeting switch is equivalent to "break". Did you mean to use "continue 2"? in /nfs/c05/h04/mnt/71392/domains/lafayette-online.com/html/wp-content/plugins/gravityforms/common.php on line 1162

Warning: "continue" targeting switch is equivalent to "break". Did you mean to use "continue 2"? in /nfs/c05/h04/mnt/71392/domains/lafayette-online.com/html/wp-content/plugins/gravityforms/common.php on line 1186

Warning: "continue" targeting switch is equivalent to "break". Did you mean to use "continue 2"? in /nfs/c05/h04/mnt/71392/domains/lafayette-online.com/html/wp-content/plugins/gravityforms/common.php on line 2855

Warning: "continue" targeting switch is equivalent to "break". Did you mean to use "continue 2"? in /nfs/c05/h04/mnt/71392/domains/lafayette-online.com/html/wp-content/plugins/gravityforms/common.php on line 2862

Warning: "continue" targeting switch is equivalent to "break". Did you mean to use "continue 2"? in /nfs/c05/h04/mnt/71392/domains/lafayette-online.com/html/wp-content/plugins/gravityforms/common.php on line 2875

Warning: Cannot modify header information - headers already sent by (output started at /nfs/c05/h04/mnt/71392/domains/lafayette-online.com/wp-config.php:12) in /nfs/c05/h04/mnt/71392/domains/lafayette-online.com/html/wp-includes/feed-rss2.php on line 8
Business News – Lafayette Online https://www.lafayette-online.com The original online guide to Greater Lafayette, Indiana. Wed, 13 Apr 2016 22:10:47 +0000 en-US hourly 1 https://wordpress.org/?v=4.5.24 LSB Financial Corp. announces Q2, YTD results https://www.lafayette-online.com/business/2011/08/lsbi-q2fy2011-ytd-results https://www.lafayette-online.com/business/2011/08/lsbi-q2fy2011-ytd-results#respond Fri, 05 Aug 2011 16:11:31 +0000 http://www.lafayette-online.com/?p=6108

LAFAYETTE, Ind.  — LSB Financial Corp. (NASDAQ: LSBI), the parent company of Lafayette Savings Bank, FSB, today reported quarterly earnings of $477,000 or $0.31 diluted earnings per share compared to $457,000 or $0.29 diluted earnings per share a year earlier.  Year-to-date earnings were $681,000 or $0.44 diluted earnings per share compared to $989,000 or $0.64 per share for the comparable period in 2010.  We believe the fundamentals of the bank are strong.  The largest positive impact on our income comes from low market interest rates which translated into a $579, 000 increase in our net interest margin year-to-date and a $163,000 increase for the quarter, primarily because of lower interest rates on deposits and borrowings.  The largest negative impact continues to come from the provision for loan losses which was $952,000 over last year for the first six months and $210,000 higher for the quarter.

Randolph F. Williams, president and CEO stated, “Despite additional credit related expenses, including the increased loan loss provision, OREO write downs and appraisal driven value adjustments on non-performing loans, this quarter represents our sixth straight profitable quarter.  Additionally, we increased capital, improved our net interest margin, and further built up our loan loss reserves.”

Williams noted, “The bank continues to benefit from lower interest rates in the economy which have resulted in an increase in our net interest margin from 3.54% for the six months ended June 30, 2010 to 3.96% for the same period in 2011.  Additionally, we have kept expenses virtually unchanged for the first six months of 2011, increasing only $27,000 over the first six months of 2010.  Expenses for the second quarter were $149,000 lower than the first quarter of 2010.   We have done this through targeted expense control rather than the reductions in staff that we so frequently see in the mega banks.  Our people are critical to attracting and maintaining customer relationships that are at the heart of the traditional community bank model.”

Williams continued, “An area that continues to plague nearly all banks to some extent is problem loans.  At June 30, 2011, our non-performing assets (loans and OREO properties) totaled $21.3 million or 5.92% of total assets, up from the $19.3 million or 5.18% at the end of 2010.  We are encouraged by our success in selling bank properties during the quarter.  We have reduced our level of OREO to $130,000 compared $1.2 million at the start of this year.  While we continually work to reduce problem loan balances, as a community bank we believe that there is little to be gained from routinely putting borrowers on a track to foreclosure at the first sign of delinquency.   Of the $21.2 million of problem loans we held on our books at June 30, 2011, nearly 50% of these borrowers continued to make payments and $3.6 million of those are actually paid current.  In the meantime we will continue to work with our borrowers to bring about the best possible outcome.  To recognize potential losses in our loan portfolio, we have added $1.9 million to our reserve for loan losses in the first six months of 2011, compared to $899,000 for the first six months of 2010.  The contribution to this reserve for the quarter was $675,000 compared to $465,000 last year in the second quarter.  This brings our reserve to $7.0 million or 2.20% of total loans compared to $5.3 million and 1.65% at December 31, 2010.  This equates to 33.2% of our non-performing loans, up from 29.0% last year at the same time.  We believe this amount will be adequate to cover losses based on our q! uarterly evaluation and loan mix.”

The bank continues to maintain a strong capital base with a Tier I capital ratio of 10.09% at June 30, 2011 compared to 9.57% at December 31, 2010.  Mr. Williams stated, “There is considerable uncertainty about where the economy is headed, both nationally and to a lesser extent here in Greater Lafayette. We believe that the combination of our continued profitability, a $7.0 million loan loss reserve and over 10.00% capital should be adequate to allow us to work through the issues presented by this struggling economy.”

“The Company will refrain from paying a quarterly cash dividend again this quarter,” Williams stated. “Because the new banking regulations are expected to address and likely revise capital levels for banks, we believe it is prudent to use our earnings to build our capital levels to make sure the bank continues on a firm capital foundation.”

The closing market price of LSB stock on August 3, 2011 was $15.40 per share as reported by the Nasdaq Global Market.

LSB FINANCIAL CORP.

SELECTED CONSOLIDATED FINANCIAL INFORMATION

(Dollars in thousands except share and per share amounts)

Selected balance sheet data: Six months ended

June 30, 2011

Year ended

December 31, 2010

Cash and due from banks $10,061 $10,593
Interest bearing deposits 3,283 2,980
Securities available-for-sale 12,024 11,805
Loans held for sale 1,342 2,265
Net portfolio loans 311,644 320,810
Allowance for loan losses 7,028 5,343
Premises and equipment, net 6,192 6,116
Federal Home Loan Bank stock, at cost 3,185 3,583
Bank owned life insurance 6,348 6,264
Other assets 5,782 7,431
Total assets 359,861 371,847
Deposits 303,779 311,458
Advances from Federal Home Loan Bank 18,000 22,500
Other liabilities 1,756 2,312
Shareholders’ equity 36,326 35,577
Book value per share $23.37 $22.90
Equity / assets 10.09% 9.57%
Total shares outstanding 1,554,275 1,553,525
Asset quality data:
Non-accruing loans $20,366 $17,370
Loans past due 90 days still on accrual 790 676
Other real estate / assets owned 130 1,214
Total non-performing assets 21,286 19,260
Non-performing assets / total assets 5.92% 5.18%
Allowance for loan losses / non-performing loans 33.22% 29.61%
Allowance for loan losses / non-performing assets 33.02% 27.74%
Allowance for loan losses / total loans 2.20% 1.65%
Loans charged off (quarter-to-date and year-to-date, respectively) $204 $1,382
Recoveries on loans previously charged off 38 229
Three months ended June 30, Six months ended June 30,
Selected operating data: 2011 2010 2011 2010
Total interest income $4,358 $4,721 $8,834 $9,393
Total interest expense 1,046 1,572 2,157 3,295
Net interest income 3,312 3,149 6,677 6,098
Provision for loan losses 675 465 1,851 899
 Net interest income after provision 2,637 2,684 4,826 5,199
Non-interest income:
Deposit account service charges 319 397 611 764
Gain on sale of mortgage loans 226 92 390 177
Gain(loss) on sale of available-for-sale securities 2 0 2 0
Gain(loss) on sale OREO (311) (228) (336) (261)
Other non-interest income 278 283 538 558
  Total non-interest income 514 544 1,205 1,238
Non-interest expense:
Salaries and benefits 1,372 1,349 2,782 2,641
Occupancy and equipment, net 268 326 596 665
Computer service 147 148 289 275
Advertising 57 78 115 134
FDIC Insurance Premium 134 164 318 323
Other 432 494 900 935
  Total non-interest expense 2,410 2,559 5,000 4,973
Income before income taxes 741 669 1,031 1,464
Income tax expense 264 212 350 475
  Net income 477 457 681 989
Weighted average number of diluted shares 1,556,146 1,553,538 1,556,525 1,553,525
Diluted earnings per share $0.31 $0.29 $0.44 $0.64
Return on average equity 5.27% 5.31% 3.78% 5.77%
Return on average assets 0.53% 0.48% 0.35% 0.53%
Average earning assets $333,808 $347,658 $336,854 $344,570
Net interest margin 3.97% 3.62% 3.96% 3.54%
Efficiency ratio 76.48% 79.28% 82.90% 77.26%

In Related News:

]]>
https://www.lafayette-online.com/business/2011/08/lsbi-q2fy2011-ytd-results/feed 0
Deadlines approaching to apply for remaining CFGL grants https://www.lafayette-online.com/business/2011/08/last-cfgl-grants-2011-deadlines https://www.lafayette-online.com/business/2011/08/last-cfgl-grants-2011-deadlines#respond Wed, 03 Aug 2011 21:55:48 +0000 http://www.lafayette-online.com/?p=6069

Community Foundation GrantsLAFAYETTE, Ind. -– There are still opportunities for discretionary and field of interest grant funding from The Community Foundation of Greater Lafayette this year, but the deadline to apply for these grants is approaching.

  • Tier 2 Discretionary grant proposals requesting $7,500 – $14,999 are due by noon, September 1, 2011.
  • Field of Interest grant proposals address needs (in the areas of children’s needs, music education for disadvantaged children, and community beautification) are due by noon on September 1, 2011.
  • Tier 3 Discretionary grant proposals requesting less than $7,500 are being accepted year-round, and the final deadline is noon, December 1, 2011.

For information about these and other grant opportunities, go to www.cfglaf.org.

The Community Foundation of Greater Lafayette, established in 1970, serves the Tippecanoe County area. Its mission is to inspire, nurture, and practice philanthropy, stewardship, and leadership in the communities served. More than 125 charitable funds totaling $30 million in assets make up The Community Foundation. During its history over $13 million has been granted to not-for-profit organizations in Greater Lafayette. In 2010, 69 nonprofit organizations received grants, and 48 individuals received scholarships totaling $636,221 in 2010. Many grants were for those one-time capital expenses that nonprofits struggle to fund and desperately need. An Annual Report is available electronically.

For additional information, visit www.cfglaf.org or call (765) 742-9078.

In Related News:

]]>
https://www.lafayette-online.com/business/2011/08/last-cfgl-grants-2011-deadlines/feed 0
Taste of Tippecanoe now accepting press kits for 2012 fest https://www.lafayette-online.com/business/2011/08/taste-accepting-press-kits-for-2012 https://www.lafayette-online.com/business/2011/08/taste-accepting-press-kits-for-2012#respond Wed, 03 Aug 2011 17:06:54 +0000 http://www.lafayette-online.com/?p=6058

Taste of Tippecanoe 2012LAFAYETTE, Ind. — The Taste of Tippecanoe is now accepting press kits and promotional material from musicians who would like to perform at the 31st Annual Taste of Tippecanoe. Press kits will be accepted until September 12, 2011.

The Taste of Tippecanoe is an annual fundraising event for the Tippecanoe Arts Federation. The Tippecanoe Arts Federation is the umbrella organization and arts council for 14 counties in North Central Indiana. The TASTE highlights various genres of music to an audience of nearly 40,000.

Performers in all genres of music will be considered and local and regional musicians are strongly encouraged to apply. TASTE 2012 will be held on Saturday, June 16, 2012.

If you have an interest in performing at the 2012 Taste, please submit a press kit (recording, photo if possible, a short biography, references, and contact information including e-mail) to:

Taste of Tippecanoe
638 North Street
Lafayette, IN 47901
Attn: 2012 Bands

Electronic press kits will be considered but you must submit a written request to perform. Electronic press kits should be e-mailed to scott@tasteoftippecanoe.org.

In Related News:

]]>
https://www.lafayette-online.com/business/2011/08/taste-accepting-press-kits-for-2012/feed 0
Lafayette Digital Media Conference to feature social media successes on Aug 2 https://www.lafayette-online.com/business/2011/07/lafayette-digital-media-conference-aug-2 https://www.lafayette-online.com/business/2011/07/lafayette-digital-media-conference-aug-2#comments Fri, 29 Jul 2011 19:04:19 +0000 http://www.lafayette-online.com/?p=6039

Lafayette Digital Media ConferenceLAFAYETTE, Ind. — Few seats remain for the first Lafayette Digital Media Conference to be held on Tuesday, August 2 at University Plaza in West Lafayette.

The panel for the LDMC reads like a who’s-who in local technology. Nine professionals from diverse industries will join community members for an afternoon of networking and conversations on digital media trends.

The conference is scheduled to run from 1:00p – 6:00p on Tuesday, August 2nd  in Suite 1/Grand Ballroom of the University Plaza Hotel at 3001 Northwestern Ave. Tickets for this event are free of charge, but seating is limited and less than 40 tickets remain. Seats can be reserved online at http://lafayettech.com/LDMC11

The focus of the Digital Media Conference is on the growth and subsequent localization of social media and how this impacts small and medium-sized businesses. Discussions will cover web-based tools like Facebook, Twitter, LinkedIn, Yelp, Foursquare, etc. as well as digital devices and smartphones that can be used to leverage communications, education and facilitate business.

Conference participants will learn from experts about how this technology can enhance their bottom-line, and panelists will share how they have successfully integrated social media into their marketing and customer engagement.

Presenters include:

  • Mihaela Vorvoreanu (keynote), Ph.D. Assistant Professor, Computer Graphics Technology, Technology Leadership & Innovation, Purdue University
  • Henry Howard, Managing Editor and Social Media Czar at Journal and Courier
  • Scott Wise, President and CEO of Scotty’s Brewhouse, Scotty’s Lakehouse and Thr3e Wise Men Brewing Company

“I chose to participate in this event because I think it is important to share knowledge to help others do better and be better,” said Scott Wise. His own business has benefited because of the support and knowledge of others, he said. And, through this conference, he hopes to continue the “pay-it-forward” trend.

Panelists include:

Patrick Nycz said his clients frequently ask questions about social media. At the conference, he hopes to share the questions a company or brand should be asking as they consider moving toward a social media engagement.

Event sponsors also represent many sectors in Greater Lafayette:

  • University Plaza Hotel
  • ISPhotographic
  • Lafayette PC
  • JP Video Productions
  • C-Factor Marketing
  • Creative Inc. (former Sign Experts)
  • Nehloo Interactive

In Related News:

]]>
https://www.lafayette-online.com/business/2011/07/lafayette-digital-media-conference-aug-2/feed 1
Lilly confirms date, conference call for second quarter 2011 financial results https://www.lafayette-online.com/business/briefs/2011/07/lilly-confirms-date-conference-call-for-second-quarter-2011-financial-results https://www.lafayette-online.com/business/briefs/2011/07/lilly-confirms-date-conference-call-for-second-quarter-2011-financial-results#respond Tue, 12 Jul 2011 21:00:27 +0000 http://www.lafayette-online.com/?p=6011

Eli Lilly LogoINDIANAPOLIS, Ind. — Eli Lilly and Company (NYSE: LLY) will announce its financial results for the second quarter of 2011 on Thursday, July 21, 2011. Lilly will also conduct a conference call on that day with the investment community and media to further detail the company’s financial performance.

The conference call will be held from 9:00 a.m. to 10:00 a.m. EDT. Investors, media and the general public can access a live webcast of the conference call through a link that will be posted on Lilly’s website at www.lilly.com. The webcast of the conference call will be available for replay through August 19, 2011.

Lilly, a leading innovation-driven corporation, is developing a growing portfolio of pharmaceutical products by applying the latest research from its own worldwide laboratories and from collaborations with eminent scientific organizations. Headquartered in Indianapolis, Ind., Lilly provides answers – through medicines and information – for some of the world’s most urgent medical needs. Additional information about Lilly is available at www.lilly.com. F-LLY

In Related News:

]]>
https://www.lafayette-online.com/business/briefs/2011/07/lilly-confirms-date-conference-call-for-second-quarter-2011-financial-results/feed 0
Social Media Marketing workshop targeted to artists offered on July 20 https://www.lafayette-online.com/business/2011/07/social-media-marketing-workshop-artists-july-20 https://www.lafayette-online.com/business/2011/07/social-media-marketing-workshop-artists-july-20#comments Thu, 07 Jul 2011 20:36:28 +0000 http://www.lafayette-online.com/?p=5990

Social Media Marketing Workshop for ArtistsLAFAYETTE, Ind. — The Tippecanoe Arts Federation, in partnership with the Athens of Indiana Arts Studios & Gallery, is hosting “Social Media Marketing Tools for Artists”, July 20 at 6:00pm. Part of the Regions Bank Technical Assistance Workshops: this workshop will be presented by Dr. Mihaela Vorvoreanu, a social media researcher and assistant professor at Purdue University.

Dr. Vorvoreanu will provide a framework for creating a social media marketing strategy and illustrate it with examples of best practices. She will introduce artists in all areas of the arts to some of the most popular social media and instructs them on their potential for building relationships with important audiences. ” ‘Professor V’ is a fun, gifted, and approachable speaker with genuine passion for the social media culture,” states Paige Sharp, Tippecanoe Arts Federation’s Arts Education & Regional Services Director.

The workshop is free to Tippecanoe Arts Federation Individual Artists and Athens of Indiana Arts Studios & Gallery members and $10 for non-members. The workshop will be held at the Crawfordsville Public Library, 205 Washington St, Room C, Crawfordsville.

Registration is required by July 14th.

For more information or to register, contact Paige Sharp at rsd@tippecanoearts.org or 765-423-2787.

In Related News:

]]>
https://www.lafayette-online.com/business/2011/07/social-media-marketing-workshop-artists-july-20/feed 1
IRS identifies organizations that have lost tax-exempt status; announces steps to help revoked orgs https://www.lafayette-online.com/business/2011/07/lost-tax-exempt-status https://www.lafayette-online.com/business/2011/07/lost-tax-exempt-status#respond Wed, 06 Jul 2011 02:03:48 +0000 http://www.lafayette-online.com/?p=5976

WASHINGTON, DC — The Internal Revenue Service has announced that approximately 275,000 organizations under the law have automatically lost their tax-exempt status because they did not file legally required annual reports for three consecutive years. The IRS believes the vast majority of these organizations are defunct, but it also announced special steps to help any existing organizations to apply for reinstatement of their tax-exempt status.

Congress passed the Pension Protection Act (PPA) in 2006, requiring most tax-exempt organizations to file an annual information return or notice with the IRS. For small organizations, the law imposed a filing requirement for the first time in 2007.  In addition, the law automatically revokes the tax-exempt status of any organization that does not file required returns or notices for three consecutive years.

Some of the organizations that have lost their tax-exempt status in Greater Lafayette include:

Taxpayer Name Address City Zip Code Sub Section Code Date of Revocation
ALPHA KAPPA PSI INDIANA INC, PI OMEGA CHAPTER 128 MEMORIAL HALL 605 STEWART CNTR WEST LAFAYETTE 47906-0000 07 10/15/2010
ABC INC 1934 W CRESCENT DR CRAWFORDSVLLE 47933-8938 03 05/15/2010
ABIDING PLACE MINISTRIES INC 5304 S 900 E LAFAYETTE 47905-9397 03 05/15/2010
ALPHA EPSILON DELTA, 52 INDIANA BETA PURDUE UNIV DEPT OF 915 W STATE ST W LAFAYETTE 47907-2054 03 05/15/2010
AMERICAN BLACK WALNUT ASSOCIATION 1037 N 500 W W LAFAYETTE 47906-9416 05 05/15/2010
AMERICAN BUSINESS WOMENS 900 ROSEMONT ST LAFAYETTE 47909-2446 06 08/15/2010
AMERICAN CHEMICAL SOCIETY, CHEMICAL ED DIV 2225 S EARL AVE LAFAYETTE 47905-2266 03 05/15/2010
AMERICAN GUILD OF ORGANISTS, 558 CRAWFORDSVILLE CHAPTER RR 1 BOX 109 CRAWFORDSVLLE 47933-9604 03 05/15/2010
AMERICAN LEGION POST 0427 ROBERT RR 2 CRAWFORDSVLLE 47933-9802 19 05/15/2010
ASSOCIATES TRUTH TEAM INC, BRENT WINTER 130 DETCHON CT LAFAYETTE 47909-8145 00 05/15/2010
ASSOCIATION FOR RETARDED CITIZENS 818 LAZY LN LAFAYETTE 47904-2722 03 05/15/2010
ASSOCIATION FOR USE OF NATIVE 871 SHAWNEE AVE LAFAYETTE 47905-1455 03 05/15/2010
ASSOCIATION OF N R O T C COLLEGES 2000 PERRINE ST LAFAYETTE 47904-1551 06 05/15/2010
ATHENIAN BOOSTER CLUB INC PO BOX 415 CRAWFORDSVLLE 47933-0415 03 05/15/2010
ATO SCHOLARSHIP FUND CORPORATION PO BOX 1497 LAFAYETTE 47902-1497 03 05/15/2010
BANKS OF THE WABASH INC PO BOX 1253 LAFAYETTE 47902-1253 03 05/15/2010
BEN-HUR PRESERVATION INC 904 E JEFFERSON ST CRAWFORDSVLLE 47933-2984 03 05/15/2010
BETHANY FARM INC 9211 E 800 N LAFAYETTE 47905-9745 03 05/15/2010
BOONE-CLINTON ASSOCIATION OF LIFE 5501 IMPERIAL BLVD CRAWFORDSVILLE 47933-9308 06 05/15/2010
CATHOLIC DAUGHTERS OF AMERICA 568 2371 MONDAVI BLVD LAFAYETTE 47909-8439 08 10/15/2010
CENTRAL INDIANA HAMPSHIRE BREEDERS 400 BEN HUR DR CRAWFORDSVLLE 47933-3306 05 05/15/2010
CFRC FOUNDATION INC PO BOX 1186 LAFAYETTE 47902-1186 03 05/15/2010
CHIP PHI FRATERNITY INC, KAPPA ZETA CHAPTER 1051 DAVID ROSS RD W LAFAYETTE 47906-2507 07 05/15/2010
CHRISTIAN SCIENCE ORG AT PURDUE 4701 N 140 W W LAFAYETTE 47906-9748 03 05/15/2010
CHRISTIAN SERVICES INC 7505 N 75 E W LAFAYETTE 47906-9658 03 05/15/2010
CITIZENS COMMITTEE ON ALCOHOLISM 2900 N RIVER RD W LAFAYETTE 47906-3744 03 05/15/2010
CRAWFORDSVILLE JAYCEES INC PO BOX 61 CRAWFORDSVLLE 47933-0061 04 10/15/2010
DARLINGTON COON HUNTERS CLUB INC 906 WAYNETOWN RD CRAWFORDSVLLE 47933-8302 07 05/15/2010
DAY OF GRACE MINISTRIES INC 11118 E 675 N W LAFAYETTE 47906-8004 03 05/15/2010
DELTA CHI FRATERNITY, PURDUE CHAPTER 501 RUSSELL ST WEST LAFAYETTE 47906-2823 07 10/15/2010
DELTA THETA SIGMA FRATERNITY 321 VINE ST W LAFAYETTE 47906-2930 07 05/15/2010
DIANA SKEET CLUB INC 67 LAFAYETTE BANK & TRUST BLDG LAFAYETTE 47901-0000 07 05/15/2010
DIRECTION SERVICES OF TIPPECANOE, COUNTY INCFIRS PO BOX 4234 LAFAYETTE 47903-4234 03 05/15/2010
DISPLACED WORKERS ASSISTANCE AGENCY PO BOX 5867 LAFAYETTE 47903-5867 03 05/15/2010
EDUCATION FOR INDEPENDENCE INC 320 BECK LN LAFAYETTE 47909-2843 03 05/15/2010
EDUCATIONAL RESOURCE BROKER INC 3610 WOODCLIFF DR LAFAYETTE 47905-8835 03 05/15/2010
ELSTON MEMORIAL FOUNDATION 400 E WABASH AVE CRAWFORDSVLLE 47933-2529 03 05/15/2010
EMBROIDERERS GUILD OF AMERICA INC, WABASH VALLEY CHAPTER 1700 LINDBERG RD APT 226 W LAFAYETTE 47906-7325 03 05/15/2010
EMPLOYEES RECREATION ASSOCIATION 3701 STATE ROAD 26 E LAFAYETTE 47905-4808 04 05/15/2010
FAIRFIELD ATHLETIC ASSOCIATION INC US HWY 525 LAFAYETTE 47905-0000 04 05/15/2010
FAIRWAY CO-OP 359 VINE ST W LAFAYETTE 47906-2957 07 05/15/2010
FLYING SOLO INC 4963 GRAYMARE LN LAFAYETTE 47905-8260 03 05/15/2010
FRATERNAL ORDER OF POLICE, 136 PURDUE LODGE 205 S JISCHKE DR W LAFAYETTE 47907-0000 08 05/15/2010
GABRIEL RAPHAEL MESSENGER INC 3327 HUMBOLDT ST W LAFAYETTE 47906-7204 03 05/15/2010
GEORGE D SCARSETH SCHOLARSHIP FUND 112 W STADIUM AVE W LAFAYETTE 47906-2751 03 05/15/2010
GEORGE WINTER COLLECTION PO BOX 4981 LAFAYETTE 47903-4981 03 05/15/2010
GLACO INC 213 S 18TH ST LAFAYETTE 47905-1131 03 05/15/2010
GLOBAL RELATIONSHIP SCHOLARSHIP 133 HIDEAWAY LN W LAFAYETTE 47906-1201 03 05/15/2010
GOLD EXPRESS INC 2508 RAINBOW DR LAFAYETTE 47904-2700 03 05/15/2010
GREATER LAFAYETTE CHAMBER OF PO BOX 348 LAFAYETTE 47902-0348 03 05/15/2010
GREATER LAFAYETTE MEMORIAL SOCIETY PO BOX 2155 W LAFAYETTE 47996-2155 04 05/15/2010
GREATER TIPPECANOE COUNTY JUNIOR 50 E 300 S LAFAYETTE 47909-3544 03 05/15/2010
HARBOR HOPE & SUPPORT FOR GRIEVING 622 SOUTH ST APT 1 LAFAYETTE 47901-1478 03 05/15/2010
HEALTH INCORPORATED PO BOX 234 LAFAYETTE 47902-0234 03 05/15/2010
HERITAGE DESIGN CONSORTIUM INC 308 MAIN ST SUITE 200 LAFAYETTE 47901-1352 03 05/15/2010
HIS MINISTRIES 2464 SYCAMORE LN APT 4 W LAFAYETTE 47906-1920 03 05/15/2010
HOOSIER PRAIRIE HERB SOCIETY 2119 OLD OAK DR W LAFAYETTE 47906-9701 05 05/15/2010
HOPE FOR THE UNBORN INC PO BOX 5005 LAFAYETTE 47903-5005 03 05/15/2010
HUTCHISON INSTITUTE FOR PREVENTION 8 N 3RD ST STE 201 LAFAYETTE 47901-1221 03 05/15/2010
IALS SCHOLARSHIP FUND 3109 DARBY LN LAFAYETTE 47904-1607 03 09/15/2010
INDIANA ALL MORGAN HORSE SHOW INC 3320 E 200 N LAFAYETTE 47905-7609 03 05/15/2010
INDIANA ARBORIST ASSOCIATION 2700 CAMBRIDGE ST W LAFAYETTE 47906-1312 05 07/15/2010
INDIANA ASSOCIATION OF SOFT WATER 701 ERIE ST LAFAYETTE 47904-2153 06 10/15/2010
INDIANA BLACK EXPO – GREATER 19 KINGFISHER CIR LAFAYETTE 47909-8074 03 05/15/2010
INDIANA BRANCH OF THE AMERICAN PURDUE UNIVERSITY W LAFAYETTE 47907-1968 06 05/15/2010
INDIANA FEDERATION OF BUSINESS & 20 CENTER DR CRAWFORDSVLLE 47933-3728 06 05/15/2010
INDIANBROOK HOMEOWNERS ASSOCIATION 3520 INDIANBROOK DR LAFAYETTE 47909-3408 12 05/15/2010
INTERNATIONAL ASSOCIATION OF LIONS CLUBS 2230 LADOGA RD CRAWFORDSVLLE 47933-3751 04 05/15/2010
IRON WORKERS LOCAL 379 BUILDING 701 ERIE ST LAFAYETTE 47904-2153 02 05/15/2010
JEFFERSON ATHLETIC BOOSTER CLUB INC, JEFFREY J MCMINDES 1801 S 18TH ST LAFAYETTE 47905-2011 03 05/15/2010
JENKS REST SENIOR CITIZENS 17 LORI LEE EST LAFAYETTE 47905-4725 04 05/15/2010
KATHRYN ROSE WILSON WHITTINGTON 909 COTTAGE AVE CRAWFORDVILLE 47933-1505 03 05/15/2010
KEY CLUB INTERNATIONAL, H84760 CRAWFORDSVILLE HIGH SCHOOL 1 W ATHENIAN DR CRAWFORDSVLLE 47933-8253 04 05/15/2010
KIRSCHMAN MINISTRIES INC 3615 STARKS DR LAFAYETTE 47909-7334 03 05/15/2010
LA FAYETTE JUNIOR WOMANS CLUB 3765 TULAROSA DR LAFAYETTE 47905-4048 04 10/15/2010
LADOGA CEMETERY ASSO INC PO BOX 873 CRAWFORDSVLLE 47933-0873 13 05/15/2010
LAFAYETTE AREA AQUATICS 3868 KENSINGTON DR LAFAYETTE 47905-4163 03 05/15/2010
LAFAYETTE BRICKLAYERS 658 MAIN ST STE 212 LAFAYETTE 47901-1418 09 05/15/2010
LAFAYETTE CHAPTER INTERSTATE 1909 N 17TH ST LAFAYETTE 47904-1406 07 05/15/2010
LAFAYETTE CITIZENS FOR DECENCY INC 926 N 19TH ST LAFAYETTE 47904-2206 03 05/15/2010
LAFAYETTE HAIRDRESSERS AND 3052 CHINOOK LN LAFAYETTE 47909-3178 06 05/15/2010
LAFAYETTE IBM CLUB 1215 POTTER DR W LAFAYETTE 47906-1333 04 05/15/2010
LAFAYETTE JAYCEE CHARITABLE FUND PO BOX 4 LAFAYETTE 47902-0004 03 10/15/2010
LAFAYETTE JAYCEES INC PO BOX 5152 LAFAYETTE 47903-5152 04 10/15/2010
LAFAYETTE RECYCLING INC PO BOX 2296 W LAFAYETTE 47996-2296 03 05/15/2010
LAFAYETTE SHEET METAL CONTRACTORS PO BOX 61 LAFAYETTE 47902-0061 05 05/15/2010
LAFAYETTE SOCCER CLUB INC 3751 SHENANDOAH DR LAFAYETTE 47905-4044 04 05/15/2010
LAFAYETTE STROKE CLUB 249 E STATE ST W LAFAYETTE 47906-3222 03 05/15/2010
LOEB STADIUM RENOVATION INC PO BOX 5301 LAFAYETTE 47903-5301 03 05/15/2010
MARRIAGE BUILDERS OF WEST CENTRAL PO BOX 1014 CRAWFORDSVLLE 47933-0693 03 05/15/2010
MASONIC TEMPLE ASSOCIATION 221 S WASHINGTON ST CRAWFORDSVLLE 47933-2445 02 05/15/2010
MENTAL HEALTH ASSOCIATION IN, INDIANA INCT 915 COLUMBIA ST APT 1 LAFAYETTE 47901-1476 03 05/15/2010
MID-STATES SAFETY BENEFIT CLUB 510 S OAK ST CRAWFORDSVLLE 47933-2973 04 05/15/2010
MIDWEST ALLIANCE 320 NORTH ST W LAFAYETTE 47906-3529 04 05/15/2010
MILITARY ORDER OF THE COOTIE OF THE UNITED STA ROYAL OAKS TRL PK 46 LAFAYETTE 47905-0000 04 05/15/2010
MILITARY ORDER OF THE COOTIE OF THE UNITED STATES2 14 ROYAL OAK ESTATES CT LAFAYETTE 47909-9067 04 05/15/2010
MILLER ASSOCIATION OF PARENTS AND 700 S 4TH ST LAFAYETTE 47905-1473 03 10/15/2010
MISSISSIPPI VALLEY CLASSIFIED 302 FERRY ST 3RD FLR LAFAYETTE 47901-1185 06 05/15/2010
MONTGOMERY CO HOUSING DEVELOPMENT 103 N GREEN ST CRAWFORDSVLLE 47933-1708 03 05/15/2010
MONTGOMERY COUNTY RIGHT TO LIFE PO BOX 766 CRAWFORDSVLLE 47933-0766 04 05/15/2010
NATIONAL FEDERATED CRAFT, 94 LAFAYETTE 11 COUNTRY AIRE DR LAFAYETTE 47905-8753 10 05/15/2010
NATIONAL SOCIETY OF PERSHING RIFLES ARMORY PURDUE UNIVERSITY WEST LAFAYETTE 47907-0000 07 10/15/2010
NEW FREEDOM MINISTRIES INC 5430 W 1100 SOUTH LAFAYETTE 47909-9292 03 05/15/2010
NIKE PRESERVATION GROUP 475 MAPLE ST W LAFAYETTE 47906-3066 03 05/15/2010
NO COMPUTER LEFT BEHIND INC 315 WAYNE AVE CRAWFORDSVLLE 47933-1140 03 05/15/2010
NORTH WEST SOCCER CLUB INC PO BOX 3891 W LAFAYETTE 47996-3891 03 05/15/2010
NORTHWEST TERRITORY WEA INDIAN 715 PARK AVE LAFAYETTE 47904-3345 03 05/15/2010
ORCHARD HEIGHTS ASSOCIATION 3905 N ORCHARD CT LAFAYETTE 47905-4481 04 05/15/2010
OTTERBEIN AFTER SCHOOL CHILD CARE 6603 PIN OAKS DR W LAFAYETTE 47906-9226 03 05/15/2010
PASSION OF CHRIST MINISTRIES INC 2536 W 450 S LAFAYETTE 47909-9255 03 05/15/2010
PHI GAMMA DELTA FRATERNITY, LAFAYETTE GRADUATE CHAPTER 2410 HAPPY HOLLOW RD E-10 W LAFAYETTE 47906-1724 07 05/15/2010
PROJECT A I D S LAFAYETTE INC PO BOX 5375 LAFAYETTE 47903-5375 03 05/15/2010
PROMISE JAIL & PRISON MINISTRY PO BOX 6736 LAFAYETTE 47903-6736 03 05/15/2010
PURCHAP HOUSE CORP C/O N CLAY 1051 DAVID ROSS RD LAFAYETTE 47906-2507 02 10/15/2010
REBIRTH INC 302 BEN HUR BUILDING CRAWFORDSVILLE 47933-0000 03 05/15/2010
RECONCILIATION INCORPORATED 1857 ALYDAR DR W LAFAYETTE 47906-4680 03 06/15/2010
RITCHEY MANUFACTURING EDUCATION 3779 ASHLEY OAKS DR APT C LAFAYETTE 47905-6021 03 05/15/2010
ROCK RIVER HOLDING COMPANY INC PO BOX 21 CRAWFORDSVLLE 47933-0021 02 05/15/2010
ROUND THE FOUNTAIN ART FAIR INC PO BOX 1134 LAFAYETTE 47902-1134 03 05/15/2010
SALON NATIONAL LA BOUTIQUE DES HUIT RR 4 CRAWFORDSVLLE 47933-9804 04 09/15/2010
SARAH DUNCAN EDUCATIONAL COUNCIL 619 FERRY ST LAFAYETTE 47901-1143 03 05/15/2010
SCHOOLHOUSE PARTNERS EDUCATION 1281 WIN HENTSCHEL BLVD W LAFAYETTE 47906-4182 03 05/15/2010
SHEET METAL WORKERS MID-STATES 323 COLUMBIA ST LAFAYETTE 47901-1315 09 05/15/2010
SIDEWALK MINISTRIES CORP 151 W 625 S LAFAYETTE 47909-8959 03 05/15/2010
SIGMA DELTA TAU SOCIETY, ALPHA EPSILON CHAPTER PURDUE UNIV STEWART CTR BOX 727 WEST LAFAYETTE 47907-0000 07 05/15/2010
SIGMA GAMMA EPSILON, ALPHA PHI PURDUE UNIVERSITY WEST LAFAYETTE 47907-0000 07 05/15/2010
SOMMER METALCRAFT CORPORATION PO BOX 688 CRAWFORDSVLLE 47933-0688 09 09/15/2010
STAR CITY CORVETTES INC PO BOX 8213 LAFAYETTE 47903-8213 07 05/15/2010
STEEL GRIP EMPLOYEES CREDIT UNION 1115 SAGAMORE PKWY S LAFAYETTE 47905-4977 14 05/15/2010
THE INDIANA FLOWER GROWERS PURDUE UNIVERSITY DEPT OF HORT W LAFAYETTE 47907-0000 05 05/15/2010
THETA DELTA CHI INC 415 S WASHINGTON ST CRAWFORDSVLLE 47933-2853 07 05/15/2010
TIPPECAKNEES 1105 HOLLY DR LAFAYETTE 47909-3023 00 05/15/2010
TIPPECANOE COUNTY COOPERATIVE, EXTENSION BOARD 9919 E 1000 S CLARKS HILL 47930-9245 03 05/15/2010
TIPPECANOE COUNTY HOTEL & MOTEL 201 FRONTAGE RD LAFAYETTE 47905-4613 06 05/15/2010
TIPPECANOE COUNTY RIGHT TO LIFE 2207 CONCORD RD B LAFAYETTE 47909-2705 04 05/15/2010
TWIN OAKS HOUSING CORPORATION 1510 SOUTHSIDE DR CRAWFORDSVLLE 47933-3661 03 05/15/2010
UNDER CONSTRUCTION MINISTRIES 4413 JACKSON HWY W LAFAYETTE 47906-9201 03 05/15/2010
VISITING NURSE HEALTH SERVICE INC 635 S EARL AVE STE 3 LAFAYETTE 47904-3210 03 05/15/2010
VOLUNTEERS IN PROBATION INC PO BOX 326 LAFAYETTE 47902-0326 03 05/15/2010
WAINWRIGHT ATHLETIC BOOSTER CLUV 923 N WAGON WHEEL TRL LAFAYETTE 47909-3646 03 10/15/2010
WALNUT COUNCIL FOUNDATION INC 1011 N 725 W W LAFAYETTE 47906-9431 03 05/15/2010
WEA TOWNSHIP 4345 WEA RIDGE RD LAFAYETTE 47909-9057 04 05/15/2010
WEST CENTRAL INDIANA ASSOCIATION OF 302 E MARKET CRAWFORDSVILLE 47933-1839 06 10/15/2010
WEST LAFAYETTE SAGAMORE LIONS CLUB, CHARITABLE INTEREST PO BOX 711 LAFAYETTE 47902-0711 03 05/15/2010
WESTCHESTER ESTATES RESIDENTS 548 WESTCHESTER LANE EAST DRIVE LAFAYETTE 47905-2849 04 05/15/2010
WILDCAT CREEK FEDERATION INC 2943 HARDING RD LAFAYETTE 47905-9431 04 10/15/2010
WISE LIVING MINISTRIES INC 5108 STABLE DR LAFAYETTE 47905-7680 03 05/15/2010
WOODLAND INDIAN CULTURAL EDUCATION 2413 WALLACE AVE LAFAYETTE 47904-3149 03 05/15/2010
YOUTH ESTEEM SANCTUARY INC 3551 EISENHOWER RD LAFAYETTE 47905-4108 03 05/15/2010

 

For several years, the IRS has made an extensive effort to inform organizations of the changes in the law through multiple outreach and education avenues, including mailing more than 1 million notices to organizations that had not filed. In addition, last year the IRS published a list of at-risk groups and gave smaller organizations an additional five months to file required notices and come into compliance. About 50,000 organizations filed during this extension period. Overall, the IRS believes the vast majority of small tax-exempt organizations are now in compliance with the 2006 law.

“During the past several years, the IRS has gone the extra mile to help make tax-exempt groups aware of their legal filing requirement and allow them additional time to file,” IRS Commissioner Doug Shulman said. “Still, we realize there may be some legitimate organizations, especially very small ones, that were unaware of their new filing requirement. We are taking additional steps for these groups to maintain their tax-exempt status without jeopardizing their operations or harming their donors.”

As part of this, the IRS issued guidance today on how organizations can apply for reinstatement of their tax-exempt status, including retroactive reinstatement. In addition, the IRS announced transition relief for certain small tax-exempt organizations – those with annual gross receipts of $50,000 or less for 2010 – that were made subject to the new “postcard” filing under the PPA. The relief allows eligible small organizations to regain their tax-exempt status retroactive to the date of revocation and pay a reduced application fee of $100 rather than the typical $400 or $850 fee. Full details are available in Notice 2011-43, Notice 2011-44 and Revenue Procedure 2011-36, issued today.

If an organization appears on the list of organizations whose tax-exempt status has been automatically revoked it is because IRS records indicate the organization had a filing requirement and did not file the required returns or notices for 2007, 2008 and 2009.

The list of organizations whose tax-exempt status has been revoked for failing to meet their filing requirement, which will be available on the IRS website at www.IRS.gov, includes each organization’s name, Employer Identification Number (EIN) and last known address. It is searchable by state. It also includes the effective date of the automatic revocation and the date it was posted to the list. The IRS will update the list monthly to include additional organizations that lose their tax-exempt status.

The vast majority of tax-exempt groups file their required returns and are unaffected by the revocation listing. In addition, the IRS believes the vast majority of the newly revoked groups are no longer in existence and need to be removed from the tax-exempt listing as the 2006 law requires.

This listing should have little, if any, impact on donors who previously made deductible contributions to auto-revoked organizations because donations made prior to the publication of an organization’s name on the list remain tax-deductible. Going forward, however, organizations that are on the auto-revocation list that do not receive reinstatement are no longer eligible to receive tax-deductible contributions, and any income they receive may be taxable.

Publication on the list of organizations whose tax-exempt status has been revoked serves as notice to donors and others that they may no longer rely on a prior listing in IRS Publication 78, Cumulative List of Organizations, as an indication of an organization’s tax-exempt status or its eligibility to receive tax-deductible contributions. An updated version of Publication 78 with current listings will be published on the IRS website later this week. Nor can donors rely on an IRS determination letter issued to the organization prior to the date of automatic revocation.

Existing organizations that seek to have their tax-exempt status reinstated must complete an application and pay a user fee regardless of whether they were originally required to file such an application. More information on the reinstatement process, including retroactive reinstatement, can be found on IRS.gov.
Additional Resources:

In Related News:

]]>
https://www.lafayette-online.com/business/2011/07/lost-tax-exempt-status/feed 0
IRS increases mileage rate 4.5 cents to 55.5 cents/mile https://www.lafayette-online.com/business/2011/07/irs-mileage-rate-to-55-5-cents-mile https://www.lafayette-online.com/business/2011/07/irs-mileage-rate-to-55-5-cents-mile#respond Wed, 06 Jul 2011 00:19:22 +0000 http://www.lafayette-online.com/?p=5974

WASHINGTON, DC — The Internal Revenue Service has announced an increase in the optional standard mileage rates for the final six months of 2011. Taxpayers may use the optional standard rates to calculate the deductible costs of operating an automobile for business and other purposes.

Internal Revenue ServiceThe rate will increase to 55.5 cents a mile for all business miles driven from July 1, 2011, through Dec. 31, 2011. This is an increase of 4.5 cents from the 51 cent rate in effect for the first six months of 2011, as set forth in Revenue Procedure 2010-51.

In recognition of recent gasoline price increases, the IRS made this special adjustment for the final months of 2011. The IRS normally updates the mileage rates once a year in the fall for the next calendar year.

“This year’s increased gas prices are having a major impact on individual Americans. The IRS is adjusting the standard mileage rates to better reflect the recent increase in gas prices,” said IRS Commissioner Doug Shulman. “We are taking this step so the reimbursement rate will be fair to taxpayers.”

While gasoline is a significant factor in the mileage figure, other items enter into the calculation of mileage rates, such as depreciation and insurance and other fixed and variable costs.

The optional business standard mileage rate is used to compute the deductible costs of operating an automobile for business use in lieu of tracking actual costs. This rate is also used as a benchmark by the federal government and many businesses to reimburse their employees for mileage.

The new six-month rate for computing deductible medical or moving expenses will also increase by 4.5 cents to 23.5 cents a mile, up from 19 cents for the first six months of 2011. The rate for providing services for charitable organizations is set by statute, not the IRS, and remains at 14 cents a mile.

The new rates are contained in Announcement 2011-40 on the optional standard mileage rates.

Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.

Mileage Rate Changes

Purpose Rates 1/1 through 6/30/11    Rates 7/1 through 12/31/11 
Business 51 55.5
  Medical/Moving 19 23.5
Charitable 14 14

In Related News:

]]>
https://www.lafayette-online.com/business/2011/07/irs-mileage-rate-to-55-5-cents-mile/feed 0
IRS interest rates remain steady for third quarter of 2011 https://www.lafayette-online.com/business/2011/07/irs-interest-rates-q3fy2011 https://www.lafayette-online.com/business/2011/07/irs-interest-rates-q3fy2011#respond Fri, 01 Jul 2011 21:51:49 +0000 http://www.lafayette-online.com/?p=5996

WASHINGTON, DC — The Internal Revenue Service has announced that interest rates for the calendar quarter beginning July 1, 2011, will remain the same as in the previous quarter.  The rates will be:

  • four (4) percent for overpayments [three (3) percent in the case of a corporation];
  • four (4) percent for underpayments;
  • six (6) percent for large corporate underpayments; and
  • one and one-half (1.5) percent for the portion of a corporate overpayment exceeding $10,000.

Under the Internal Revenue Code, the rate of interest is determined on a quarterly basis.  For taxpayers other than corporations, the overpayment and underpayment rate is the federal short-term rate plus 3 percentage points.  Generally, in the case of a corporation, the underpayment rate is the federal short-term rate plus 3 percentage points and the overpayment rate is the federal short-term rate plus 2 percentage points.  The rate for large corporate underpayments is the federal short-term rate plus 5 percentage points.

The rate on the portion of a corporate overpayment of tax exceeding $10,000 for a taxable period is the federal short-term rate plus one-half (0.5) of a percentage point.

The interest rates announced today are computed from the federal short-term rate during April 2011 to take effect May 1, 2011, based on daily compounding.

Revenue Ruling 2011-12, announcing the rates of interest, appeared in Internal Revenue Bulletin No. 2011-26, dated June 27, 2011.

In Related News:

]]>
https://www.lafayette-online.com/business/2011/07/irs-interest-rates-q3fy2011/feed 0
Indiana farmland values still rising says Ag Economist https://www.lafayette-online.com/business/agriculture/2011/06/indiana-farmland-values-still-rising-says-ag-economist https://www.lafayette-online.com/business/agriculture/2011/06/indiana-farmland-values-still-rising-says-ag-economist#respond Sat, 11 Jun 2011 03:06:48 +0000 http://www.lafayette-online.com/?p=5965

WEST LAFAYETTE, Ind. — A Purdue agricultural economist expects Indiana farmland values to keep rising this year, continuing a trend that has seen them increase by 270 percent since 1985.

Farmland increased in value by 12 percent last year. In June 2010, the average price for an acre of land in Indiana was $4,419. With the strong prices in place since last fall, Craig Dobbins expects values to increase significantly.

“When you buy a capital asset, you are buying future income,” said Dobbins, who explained that the three main factors driving farmland values are income, interest rates and the growth rate of annual income.

Income has a positive relationship to farmland value. Farm income – what is left after subtracting all costs except land from the overall revenue – has increased greatly with strong commodity prices.

While commodity prices have increased with ethanol production, rising farm input costs need to be watched and have cut into farms’ total income, Dobbins said.

“In 2009, petroleum costs went way up and fertilizer costs hit $1,000 per ton, which was higher than we ever imagined,” he said. “This squeezed crop production margins. Farmland values didn’t increase as much and, in some cases, small declines occurred.”

Interest rates also drive farmland value because low interest rates make it easier to pay for a capital asset like land and make alternative investments less attractive.

“This is one area that a lot of people are talking about, as interest rates peaked in the 1980s and have been coming down ever since,” Dobbins said. “That’s helped increase farmland value, but zero is the bottom on interest rates, so it’s likely that they will at least flatten out.”

Dobbins said that with a growing world population and increased demand, many expect the growth rate of annual incomes to continue to be strong. Better crop genetics, tillage systems and weed control have led to increased yields and increased income.

Many other factors influence farmland prices, such as location and potential development. But, with the greatly decreased housing market of recent years, Dobbins said the movement of farmland into residential developments has slowed dramatically.

Far more people are interested in buying farmland than selling it, Dobbins said. Although it appears likely that farmland values will continue to increase, he advised farmers to be cautious with all purchase and sales decisions.

“Current farmland values are not excessive, but this is all based on the idea that expectations of strong farmland income, low interest rates and a continued growth in farmland income will be realized,” Dobbins said. “Sometimes expectations, even widely held expectations, are not realized. When this happens, there can be significant downward adjustments in farmland values. Farmers need to carefully budget through any decision to buy land.”

For additional information on farmland values, view the paper and video materials developed by the Purdue Center for Commercial Agriculture at http://www.agecon.purdue.edu/commercialag/progevents/landvalueswebinar.html

In Related News:

]]>
https://www.lafayette-online.com/business/agriculture/2011/06/indiana-farmland-values-still-rising-says-ag-economist/feed 0