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1 Federal Land Bank head addresses annual meet tAOfc. » - KUmi/bnubK - WfcuNtsu/11, rifcr 1 cmocit m, k i Gene Simes, Hebron, left, has been re-elected a director of the Federal Land Bank Association of DeKalb- Woodstock. With him following the annual meeting is Pete Petges, vice-president, who is at the Woodstock office. The FLBA provides long-term loans to farmers, primarily for land purchases. Relatively stable interest rates and a decline in the value of farmland marked the past year for the Federal Land Bank Association of DeKalb- Woodstock, John Webb, t, told 650 members at annual meeting late last month. Webb said commodity surpluses, low prices paid farmers and relatively high interest rates less than a year ago combined to cause the general decline in the farm economy. Farm land has declined 20 percent in value from levels it reached in 1961, he continued, though few land sales have been held in the seven counties served by the farmer-owned cooperative during the past 12 months. "We have not seen enough Sales to give a firm value on land. The Payment in Kind program, dry weather with possible commodity and higher prices 'for commodities since PK was initiated are added factors fanners are considering," said 'Webb. / During the year Webb said interest rates were reduced four times from 12% percent to 11% percent. , He said the organization's board members were unusually active during the past year with special attention to implement the Sixth District Farm Credits Board's decision to move toward one- stop credit and joint management. The FLBA achieved this joint management with the Northeast Illinois Production Credit Association which serves farmers in McHenry, Lake and Boone counties. Those are three of the counties served by the P1*BA of DeKalb-Woodstock. Others include DeKalb, Kane, DuPage and Cook counties. Webb is serving as president of the two organizations. The two boards cononue to direct the respective organizations. Webb said the joint management venture should result in an economic savings for borrowers by streamlining the itional structure, make needs as as money to cattle ana to pi sp^ here & q there in Business Simes, Hebron, and Bd Arndt, Malta, were ifc-alected to three- year terms each dnthe board of directors. The board holds its reorganizational meeting early this month. Simes served as chairman the past year and presided at the annual meeting in Elgin. Six farmers were elected to serve as a nominating committee for 1984: William Hall and Donald Lindberg, Caledonia; Wilbert Buchholz, Waterman; William Clausen, DeKalb: Glenn Lenschow, Hampshire; and Bruce Olbrich, Woodstock. Alternates include Robert Morris, South Beloit; Donald Fowler, Belvidere; Robert Gommel, Malta; Rex Nelson, Kingstone; George Grever, Jr., Maple Park; and Clarence Aavang, Huntley. use of capital and staff members, eliminate certain duplicated effort and assist in the financial planning for borrowers. The FLBA provides money for long-term use such as land purchase. Hie PCA is the prime source of funds for farmers for such shorter term loan activity for the six months ending June 30, 1983 involved 35 loans amounting to $4.7 million. "At a time wnen delinquency and foreclosures are frequently discussed, I can report the delinquency rate in the St. Louis District is only 3.07 percent. However, in the FLBA of DeKalb-Woodstock, the record is even more outstanding, 1.35 percent," said Petges. "The farmers of this area are conscientious about keeping their loan payments current." Sluggish employment opportunities forseen Employers in the McHenry area predict modest employment prospects for the next three months, according to the quarterly Employment Outlook Survey conducted by Manpower, Inc. Chuck Bartels, owner of Manpower's McHenry office, said, "Overall, 20 percent of area employers polled plan to hire additional workers during the fourth quarter of 1983 (October, November, December) Another 10 percent expect staff reductions, 67 percent plan no chahge in staff and 3 percent are unsure of their hiring intentions at this time." This represents a deterioration in the situation reported for the third quarter of this year, when 30 percent of employers planned to hire, 7 percent expected reductions and 63 percent predicted no change. These results for the fourth quarter of 1983 appear to be due to both seasonal factors and expectations of business conditions. In a comparable survey conducted one year ago at this time. 10 percent of employers reported intentions to hire and 13 percent predicted' reductions. Local job opportunities are predicted b>r durable and n o n d u r a b l e g o o d s manufacturers. Some staff reductions are expected by the construction industry and the services sector. The outlook is stable in other employment sectors Nation-wide, a strong upward trend in the post-recession rehiring process is indicated for the second consecutive quarter, according to the findings of the fourth quarter 1983 Employment Outlook Survey. More than 11,400 employers in 354 U.S. cities participated in the survey and overall. 26 percent plan to increase their workforce during the next three months while only 9 percent expect cutbacks. Current hiring intentions are substantially stronger than those reported last year at this time when only 18 percent planned to add staff while 14 percent anticipated cutbacks. Affordable financing still available Although conventional mortgage Interest rates have risen in recent months, affordable financing is still available. Since Congress and the Reagan administration have failed to reduce federal budget deficits, the government is competing for credit with private borrowers. This has forced interest rates upward and there appears to be little hope for a noticeable decline in the foreseeable future. Housing affordability has dropped as a result of higher mortgage rates, but affordable financing is still available. FHA and VA mortgages offer small down payments and lower than conventional mortgage rates. However, even tnese rates are too high for many prospective home buyers. Some developers are "buying down" the interest rate to reduce monthly mortgage costs. In effect, the seller pays cash in order to lower the interest rate. Typically, this involves a "3-2-1 buy-down" which lowers the interest rate by 3 percent­ age points in the first year, 2 points in the second year and 1 point in the third. • is assuming a low interest D JY ealtors ECORD assumes that the buyer's income will increase as • the payments rise and a buyer to qualify for purchase of a home that otherwise would be out of reach. These programs are all particularly important to first- time buyers and often are 'found m condominium and townhouse developments. Perhaps the most important method of buying a home in higherInte assuming a low interest mortgage on an existing home. FHA and VA mortgages are fully assumable as are a number of other types of mortgages although assignability on some loans is prohibited in certain areas. It is possible to assume mortgages in the 10 percent to 12 percent range although the difference between the outstanding, loan balance and the sales price can amount to many thousands of dollars. If a prospective buyer is unable to come up with a large cash down-payment there are alternatives. The buyer can borrow the difference at a conventional market rate and blend it with the old loan. If the blended rate is still too Ugh, many sellers are willing to offer financing at below market rates. There is a wide variety of new financing methods, but the vast majority of Americans prefer the conventional fixed rate loan. If the current mortgage rate situation is discouraging, talk to a qualified Real Estate professional, a member of the National Association - of Realtors, about low interest assumable loans and how they can lead to the road of home ownership. For homeowners insurance coverage that helps keep up with the risingcost of rebuilding your home, check with State Farm. Ask me about our Homeowners Policy with automatic Inflation Coverage. DENNIS CONWAY 3319 W. Elm St. McHenry 4 m 38S-711L . S T A T I F A R M Like a good neighbor. State Farm is there Stale FrnnF .re and Casualty Company Home Offices Btoonwngton ilhnos I N S U t A N C i € Meet people do-- bv who wmnt to meet youl CALL McHENRY COUNTY COMPUTER OATING SERVICE (S15)3M-2M0 Who knows? It may chanao your ontiro llfol 10 THE McHENRY PLAINDEALER The McHenry Plaindealer 3812 W Elm Street McHenry. II. 60050 • 3 YEARS • 140.00 • 2 YEARS • $28.50 • 1 YEAR IH.50 Qt MONTHS • $8.50 • PAYMENT ENCL05ED Name Address PUces good in ' McHenry County PHOTOGRAPHY SCHOOL Date: October 4,1983 Time: 7 pm to 10 pm Place: Old Towne Hall 54 Brink Street Downtown Crystal Lake, IL. Sponsored By: LION PHOTO 61 N. Williams St. Downtown Crystal Lake 815-455-1700 TICKETS *5.50 JJ LAWN & GARDEN f f PRICES EFFECTIVE THURS. SEPT. tt THRU SAT. OCT. 1. WE RESERVE THE RIGHT TO LIMIT QUANTITIES. 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