📈 How risky are you? Also grants, mergers, bill of sale, & boots.

Weekly Edition #16

Good Morning. Welcome to the Gravel Road - your weekly agri-news infotainment. We’re like spring-time weather in the Midwest… you’re never sure what you’ll get, but at least you’ll be kept on your toes.

Here’s what we have this week:

• 📈 Risk Tolerance

• 🚜 Equipment Purchases

• 💰 Prices

• 👢 Top Ten Boots

WISDOM

Risk is undeniable in agriculture. And every business, for that matter.

Always has been, always will be.

Before you can put a plan together to manage risk, you need to know your risk tolerance level. That means, how much risk can you take on and still sleep well at night?

Take this quick 13 question quiz to know how you stack up…

Answer each question honestly, and tally up the points in (). The scorecard at the end will give you your results.

Question 1: In general, how would your best friend describe you as a risk taker?

• a. A real gambler (4)

• b. Willing to take risks after completing adequate research (3)

• c. Cautious (2)

• d. A real risk avoider (1)

Question 2: You are on a TV game show and can choose one of the following; which would you take?

• a. $1,000 in cash (1)

• b. A 50% chance at winning $5,000 (2)

• c. A 25% chance at winning $10,000 (3)

• d. A 5% chance at winning $100,000 (4)

Question 3: You have just finished saving for a “once-in-a-lifetime” vacation. Three weeks before you plan to leave, you lose your job. You would:

• a. Cancel the vacation (1)

• b. Take a much more modest vacation (2)

• c. Go as scheduled, reasoning that you need the time to prepare for a job search (3)

• d. Extend your vacation, because this might be your last chance to go first-class (4)

Question 4: If you unexpectedly received $20,000 to invest, what would you do?

• a. Deposit it in a bank account, money market account, or insured CD (1)

• b. Invest it in safe high-quality bonds or bond mutual funds (2)

• c. Invest it in stocks or stock mutual funds (3)

Question 5: In terms of experience, how comfortable are you investing in stocks or stock mutual funds?

• a. Not at all comfortable (1)

• b. Somewhat comfortable (2)

• c. Very Comfortable (3)

Question 6: When you think of the word “risk,” which of the following words comes to mind first?

• a. Loss (1)

• b. Uncertainty (2)

• c. Opportunity (3)

• d. Thrill (4)

Question 7: Some experts are predicting prices of assets such as gold, jewels, collectibles, and real estate (hard assets) to increase in value; bond prices may fall, however, experts tend to agree that government bonds are relatively safe. Most of your investment assets are now in high-interest government bonds. What would you do?

• a. Hold the bonds (1)

• b. Sell the bonds, put half the proceeds into money market accounts, and the other half into hard assets (2)

• c. Sell the bonds and put the total proceeds into hard assets (3)

• d. Sell the bonds, put all the money into hard assets, and borrow additional money to buy more (4)

Question 8: Given the best and worst case returns of the four investment choices below, which would you prefer?

• a. $200 gain best case; $0 gain/loss worst case (1)

• b. $800 gain best case, $200 loss worst case (2)

• c. $2,600 gain best case, $800 loss worst case (3)

• d. $4,800 gain best case, $2,400 loss worst case (4)

Question 9: In addition to whatever you own, you have been given $1,000. You are now asked to choose between:

• a. A sure gain of $500 (1)

• b. A 50% chance to gain $1,000 and a 50% chance to gain nothing (3)

Question 10: In addition to whatever you own, you have been given $2,000. You are now asked to choose between

• a. A sure loss of $500 (1)

• b. A 50% chance to lose $1,000 and a 50% chance to lose nothing (3)

Question 11: Suppose a relative left you an inheritance of $100,000, stipulating in the will that you invest ALL the money in ONE of the following choices. Which one would you select?

• a. A savings account or money market mutual fund (1)

• b. A mutual fund that owns stocks and bonds (2)

• c. A portfolio of 15 common stocks (3)

• d. Commodities like gold, silver, and oil (4)

Question 12: If you had to invest $20,000, which of the following investment choices would you find most appealing?

• a. 60% in low-risk investments, 30% in medium-risk investments, 10% in high-risk investments (1)

• b. 30% in low-risk investments, 40% in medium-risk investments, 30% in high-risk investments (2)

• c. 10% in low-risk investments, 40% in medium-risk investments, 50% in high-risk investments (3)

Question 13: Your trusted friend and neighbor, an experienced geologist, is putting together a group of investors to fund an exploratory gold mining venture. The venture could pay back 50 to 100 times the investment if successful. If the mine is a bust, the entire investment is worthless. Your friend estimates the chance of success is only 20%. If you had the money, how much would you invest?

• a. Nothing (1)

• b. One month’s salary (2)

• c. Three month’s salary (3)

• d. Six month’s salary (4)

Now, add up your total points to get your tolerance for risk 👇

How’d you score?

*Your humble author scored a 26. I guess I’m average…

→ Use your new-found awareness to make better decisions for your business.

SEEDS

• 🌱 Carbon Capture: Agreena, a Denmark based software startup, landed $50 million in investments to expand its carbon farming initiatives focused on helping farmers build revenue streams through carbon credits.

• ⚡ Energy Grants: The White House announced $1 billion in new grants to help farmers, ranchers, and rural ag businesses make energy efficient improvements. Learn about applications here, for these programs under the (contradictory) Inflation Reduction Act.

• 🏀 Basketball Origins: March Madness came to a close with a ho-hum UConn victory on the men’s side (thank goodness for Iowa’s Caitlin Clark bringing attention to the women’s tournament). Here’s a fun read on how agriculture helped create the game of basketball.

• 🩺 Mars Merger: Veterinary equipment company Heska Corp is being acquired by candy bar mogul Mars, Inc. in a $1.3 billion deal helping Mars expand its animal diagnostics business.

• 🌽 Corn Genes: A team of researchers at UNL identified a set of genes responsible for helping corn adapt to new environments, and hopes this breakthrough will accelerate the development of new corn varieties resistant to extreme weather conditions.

• 💲 Top Prices: Farmland values continue to rise, but may peak in 2023 according to Farmers National and Farmer Mac, due to surging interest rates and inflation increasing input costs.

• 👋 Good News: All average retail fertilizer product prices were down to close out March providing some relief to historically high input costs.

Pro Tip: Bill of Sale

When buying or selling equipment always have a bill of sale & purchase agreement.

The Purchase Agreement covers all negotiated terms, timeframes, payment methods, etc.

The Bill of Sale shows the ownership transfer.

These can be in the form of one document.

And always make sure that:

• It’s detailed

• It’s in writing

• It’s signed by both parties

This makes for a more harmonious outcome for all involved.

THIS WEEK’S TOP TEN: Boot Brands

Cowboy boots have become a timeless fashion staple with their rugged, yet stylish design outlasting generations. They’ve evolved from practical workwear to everyday wear across the globe. Western boots can be found in the mudroom and the board room, and everywhere in between.

So, we thought we’d put together a list of the top 10 most popular cowboy boot brands, based on various opinions, research, and reviews.

Here’s the top ten cowboy boot brands:

1. Ariat

2. Justin Boots

3. Tony Lama

4. Lucchese Bootmaker

5. Durango Boots

6. Nocona Boots

7. Dan Post Boots

8. Corral Boots

9. Laredo Boots

10. Anderson Bean Boot Company

*This list is based on a combination of market research, industry expert opinions, and online consumer reviews from various sources.

MEME OF THE WEEK

That's a wrap, folks.

THANK YOU to everyone who works off the beaten path to feed our nation.

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