Credit Crunch and Surplus is Affecting Ag Industry

iStock_000017068698Large.jpgIt seems that a crop surplus has led to a 14-year low in agricultural industry profits according to Bloomberg. The amount of debt that farms have taken on is said to be the highest in the last 30 years.

The banks don’t want to give out anymore loans unless they are secured by land. This has caused an influx of interest in the USDA program which was originally designed to be a last ditch effort, not a standard. Enter in the statistically consistent problem with any government programs. You said it. Yes. This one is almost broke as well. 

The lessors of land will find it to be a difficult year most likely. Will lease rates fall? Still remains to be seen. According to the USDA, the forecasts do not look good in the profit column for 2016. The National Farmers Union is petitioning Congress for a credit solution asap so that they can continue production.

Recently there has been a surprising increase in prices and it is the agricultural industries hope that the rally continues. 

(Data courtesy of Bloomberg, National Real Estate Investor 2016)

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The Beiler-Campbell Business Center Welcomes New Tenant: Cyron & Company

Cyron-0798-1For over twenty years, Cyron & Company has offered a comprehensive suite of customizable accounting, payroll and tax services for small to mid-sized businesses and individuals. Our unique approach of delivering custom-tailored solutions truly sets us apart. We help you achieve balance by aligning your business and personal goals. We pay close attention to your goals, ideas, plans, and concerns—and design a services package that meets these specific needs and objectives.

Our distinct philosophy has not only earned us the loyalty of our clients, but has allowed us to grow through a steady stream of referrals. We’re known for our clear focus on helping clients reach their full financial potential and are proud to develop partnerships that support business growth and ongoing financial strength.

Cyron & Company is moving into the newly constructed 400 Building within the Beiler-Campbell Business Center.

Add their new contact information into your CRM/Address Book:

Cyron & Company Certified Public Accountant

The Beiler-Campbell Business Center, 400 Old Forge Ln, Suite #405, Kennett Square, PA 19348

Find out more about Cyron & Company by visiting their website HERE

Through the Looking Glass (Part 1) – Commercial Real Estate in 2015

MirrorMirrorWell it is that time again when the economists, financiers, commercial real estate execs and genies make their predictions for the New Year. As predicted by the Delloitte Center for Financial Services, rents and vacancies showed improvement, development pressed pause, REIT’s and foreign investment led the charge in activity, the standards for CRE lending were allayed and leasing was partially determined by tenant’s use of technology. The majority of sources remain positive regarding 2015’s outcome.

We have good news on the unemployment sector. The majority of the US saw a downturn in unemployment. That evidence includes those that vacated the workforce. For 2014, here are the stats:

States where unemployment experienced an annual increase:

  • Alaska
  • Louisiana
  • North Dakota
  • Vermont
  • W Virginia
  • Wyoming

States that experienced no change:

  • DC
  • Iowa
  • Oregon
  • Virginia

While Puerto Rico’s unemployment decreased, they still hold the highest unemployment rate at 14 percent.  The average in the nation in December was 5.69 according to NCSL data.

Alice_through_the_looking_glassThe prevailing inclinations as we gaze “through the looking glass” are:

  • Enduring returns of REIT’s
  • Expanded funding sources on a global scale
  • GDP growth trend
  • Investment transactions rise
  • Construction Industry gradual recovery
  • Technology advances
  • Industrial property development growth
  • Suburban markets making a comeback

queensThe potential perils and pitfalls foreseen in wonderland, pardon me, CRE-land include currently delayed, yet inevitable Treasury rate escalations, federal regulatory ambivalence, the predicted plunge in US labor force growth two years from now, aging infrastructure and vacillating energy prices.

In Through the Looking Glass (Part 2) we will further explore the nuts and bolts of the industry findings…stay tuned.

Resources:

Deloitte Center for Financial Services, Deloitte Development LLC, 2014 “2015 Commercial Real Estate Outlook”

Urban Land Institute & PWC, “Emerging Trends in Real Estate – US and Canada 2015”

National Conference of State Legislatures, http://www.ncsl.org/research/labor-and-employment/2014-state-unemployment-rates.aspx, December 19, 2014

Welcome ARK Pain Management to the Beiler-Campbell Business Center

photo 4cropARK Spine Care & Pain Management offers the most comprehensive non-operative pain management care available. Dr. Jha is a triple board certified (Pain management, Neurology, Psychiatry) physician who is dedicated to upholding the highest professional standards and providing the highest quality of healthcare while striving to deliver pain relief for her patients.

Chronic pain is a complex condition with multiple layers of challenges, many which unfortunately are invisible to others except for the person suffering. It often has multiple facets to its presentation ranging from physical and emotional to social factors. Unfortunately, very commonly, chronic pain goes untreated or under-treated in our society.
Given the complexity, the essence of comprehensive pain management at ARK Spine Care & Pain Management includes a multimodal approach, which includes different modalities spanning from physical therapy, medications, psychological treatments if indicated, and injections. Reliance on only one modality may result in minimal or partial improvements. Our ultimate goal is to improve our patient’s level of functioning and pain scores in the most compassionate and safe way.

Providing the most advanced medical approaches and highest quality of pain management, Dr. Jha strives to work with patients to develop a plan of care that best meets the needs of each individual. She evaluates patients with a variety of pain problems and devises a carefully thought out treatment plan according to each unique pain problem. Implementing interventional and non-interventional therapies of pain management to deliver effective comprehensive care, ARK Spine Care & Pain Management provides the highest quality of non-operative pain management available.

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Airbnb: Innovative or Illegal?

GavelThe jury is still out on this one…literally. Airbnb is facing off against New York City’s attorney general, Eric T. Schniederman for the right to exist. Strong opinions are doing the dance, as property owners and managers claim that this is a major security, safety and management issue. The legitimate tenants’ safety and security are considered as compromised by Airbnb “vagrants” taking up residence in their buildings for an unknown period of time with no signed rules of engagement.

The property owners are screaming because they aren’t even made aware these strangers are in their buildings.  Suburban Airbnb’ers have HOA’s and neighbors up in arms alike. Mr. Schniederman seems to be “loaded for bear”, as he has subpoenaed Airbnb users detailed contact information and usage details. Well, Airbnb has apparently wiped out quite a few of the NYC online innkeepers in a perceived act of compliance and showmanship. A good move, since it is alleged that 2/3rd of the listings in New York City were in violation of the law. Another crucial item of dispute is the loss of tax revenue. Oh yes, the tax man has his hand out and Airbnb users are not paying up. That’s an issue that the government is not taking lightly. But NYC officials aren’t the only ones that are outraged at this newcomer. NYCThe hospitality industry sees Airbnb as a viable threat to the industry. Hotel chains have struggled with maintaining costs, the evidence thereof in the rise in rates around 20% within the last few years. In their opinion, it is a hit to the tourism industry as a whole. Oh, lest we forget the Airbnb “victims” that assume “reasonable risk” of which Airbnb assumes no responsibility should your arranged sub-let go awry . Neglected users are coming out of the woodwork, becoming quite a PR risk. As of late, Airbnb is said to have tried to make amends by a request to become a sanctioned hotel entity and pay their share of those taxes and change the way NYC officials, property owners and neighborhoods view their service.  They are swinging an approximate $21 million in front of lawmakers as a pendulum symbolizing prosperous success for everyone involved. NYC..ball’s in your court…courtroom that is. Some say that money can fix anything.  Good luck Airbnb…we think you might need it.

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