leader FARM CREDIT OF CENTRAL FLORIDA
A LOOK INSIDE... Wild Goose Farms: Environmental Stewards Summary of Florida’s Agriculture Cost-Share Program New Brooksville Office Coming Soon
WINTER 2019
Greetings! Throughout the holiday season, we all take the time to count our blessings and reflect on everything we are grateful for. We have so much to be thankful for, but we especially want you to know how thankful we are for you, our borrowerowners and members of the wonderful community we are proud to serve. In this edition of the Leader, you will hear about exciting developments for the year ahead that will enable us to serve you better. These changes include a new Brooksville office, announcement of a newly established Member Advisory Committee and more. We look forward to partnering with you during the wonderful year ahead! Thanks for reading. Enjoy,
R E G G I E H O LT
PRESIDENT AND CEO
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LEADER
INSIDE THIS ISSUE
is published quarterly for stockholders, directors and friends of Farm Credit of Central Florida.
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Wild Goose Farms: Environmental Stewards
PRESIDENT Reginald T. Holt
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Intellectual Capital
BOARD OF DIRECTORS W. Rex Clonts, Jr., Chairman Keith D. Mixon, Vice Chairman Jenny R. Black C. Dennis Carlton, Sr. John S. Langford Randy L. Larson David A. Mereness Robert R. Roberson Randall E. Strode Ronald R. Wetherington
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Summary of Florida’s FY 2018-2019 Agriculture Cost-Share Programs
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Association News
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EDITORS Tory Moore, Director of Marketing Shannon Fry, Marketing Coordinator PUBLISHER AgFirst Farm Credit Bank DESIGNERS Joey Ayer Phereby Derrick Athina Eargle Amanda Simpson PRINTER Professional Printers
WILD GOOSE FARMS Address changes, questions, comments or requests for copies of our financial reports should be directed to Farm Credit of Central Florida by writing P.O. Box 8009, Lakeland, FL 33802-8009 or calling 863-6824117. Our quarterly financial report can also be obtained on our website: www.FarmCreditCFL.com
13 BYLAW AMENDMENTS AND NEWLY ESTABLISHED MEMBER ADVISORY COMMITTEE
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CHUCK AND VESNA ALLISON
WILD GOOSE FARMS: ENVIRONMENTAL STEWARDS Growing up watching his father farm in North Florida, it was Chuck Allison’s dream to become a farmer, too. After college, he began learning about business and agriculture while working at A. Duda and Sons, a diversified producer of vegetables, citrus, cattle, sugarcane and other crops and is perhaps
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best known as one of the top growers of celery in the United States. After winding down a 24-year career managing agricultural investments and running the agricultural division at Prudential. Chuck has gone full circle, serving on the board of A. Duda and Sons.
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THE FARM’S ENTRANCE
Chuck and Vesna Allison began farming in the mid-1990s. In 2008, they began farming “Florida blueberries at their finest” in Umatilla. Today, Wild Goose Farms consists of nearly 1,000 acres of blueberries, citrus, cattle and hay, and was recognized as a 2018 recipient of the Commissioner’s Agricultural Environmental Leadership Award. The award is presented annually to growers and ranchers in recognition of their environmental practices. Recipients are first nominated, and their nomination is evaluated by a committee that looks for innovative environmental ideas. Recipients are honored at the Leadership Breakfast at the Farm Bureau Annual Convention. “We’ve been blessed with a lot of very good land, and we feel like we need to innovate around stewardship in ways that preserve the environment and utilize resources in the best way,” Chuck explained. Neighboring the Ocala National Forest, Wild Goose Farms has a culture of stewardship and values the land and resources entrusted to its owneroperators. Environmental practices in place on the farm include soil moisture probes, micro-drip irrigation, fertigation and other water management practices. Wild Goose Farms works closely with researchers at the University of Florida on water conservation research and is also a test research site for breeding new plant varieties. The farm recently welcomed experiments and studies from researchers at the University of Florida’s Bee Laboratory. Wild Goose Farms built a culture that not only believes in upkeep and proper treatment of the land and resources, but also treating employees and community members well. The Allisons and their team are extremely involved in the community
Farm Credit has been a business partner with me since the beginning of our farming adventure, “They have provided capital to buy land and expand our operations. Farm Credit has a broad understanding of agriculture and, specifically, the businesses we’re in.
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CHUCK ALLISON
BLUEBERRY OPERATIONS AT WILD GOOSE FARMS
and make an effort to work closely with the Redland Children Migrant Workers Association to provide funds for children’s education and social opportunities. Vesna works closely with employees and their families to ensure they each have a positive experience. One of the missions of Wild Goose Farms is to “bless the employees and their families through rewarding work opportunities that impact them financially, professionally, and spiritually.” “Farm Credit has been a business partner with me since the beginning of our farming adventure,” Chuck said. “They have provided capital to buy land and expand our operations. Farm Credit has a broad understanding of agriculture and, specifically, the businesses we’re in.”
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WHAT IS FARM CREDIT EXPRESS? Farm Credit EXPRESS is a competitively priced equipment financing program supported by Farm Credit and available at your local dealer. Financing is available for farm equipment, irrigation systems, and equine and commodity trailers. Why Farm Credit EXPRESS? • Easy, on-the-spot financing • Allows you to take advantage of cash discounts from the manufacturer for new equipment • Used equipment programs • Decisions within minutes • Fixed-rate loan products • Leasing options • Service and support from a local lender • The opportunity to share in our profit-sharing patronage program
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To find a dealer near you, visit farmcreditexpress.com
INTELLECTUAL CAPITAL By Dr. David Kohl
There’s an old saying that “to get started in farming and ranching, you either have to inherit land from family, marry into it or be lucky enough to have a generous, rich neighbor gift it to you.” It’s tempting to look at successful producers who have a considerable amount of land and think that anyone could be successful with such a head start. Some producers who lack access to capital without land equity can become discouraged or frustrated. This is particularly true among young and beginning farmers. What strategies can you employ when hard collateral, such as land, is not available? How can an individual build a case for financing when their collateral consists of soft assets, such as equipment, machinery, inventory or management potential? The answer may start with intellectual capital, which includes less tangible aspects of the business, such as the ability to plan, strategize, execute and monitor results. Whether it’s a young producer, entrepreneurial startup, an individual leasing most of the asset base or a business in transition, intellectual capital is crucial in building soft collateral. Intellectual capital is increasingly becoming a significant factor as more land and equipment assets are leased. Current trends demonstrate a focus on controlling assets rather than owning them. How can one build intellectual capital, or soft asset collateral, when farm real estate equity does not exist? The first element would be to build a strong business plan using clear, written ideas. The plan should detail the short- and long-term goals for the business, family and personal life. This process appears to be basic, but it requires thinking through priorities and allocating capital, time and talent resources to their highest and best use. Monitoring progress can be used to ascertain whether equity is being built. This trend analysis can be useful in
building a case to lenders and investors for additional borrowing or capital if the business is in growth mode. Projected cash flow, production plans and operating schedules linked to a marketing plan are critical. Knowledge of payment schedules, timing of costs and operating capital needs are the intellectual horsepower that can be invaluable in soft collateral assets. To top it off, a cash flow analysis and sensitivity testing of various levels of production, marketing, CONTINUED ON NEXT PAGE LEADER • WINTER 2019
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prices and cost can provide the boundaries of possibilities. Regularly monitoring results is an important part of intellectual capital. The difference between planned and actual outcomes can be determined using variance analysis. This process allows producers to adjust the business plan with changing conditions not only in the business, but also at the macro level. For example, a young farmer started his enterprise with a used pickup truck, lots of energy, ambition and a well-though-out business plan on rented ground. Within five years, he had paid for his equipment and livestock loans with earned profits. These assets, along with a proven track record, were used as equity to acquire land assets with borrowed funds. In this particular case, the individual’s and
spouse’s commitment to a modest lifestyle and dedication to working side-by-side with their agricultural lender were a win-win situation when land equity was non-existent. Intellectual capital will make a significant difference in the agribusiness world, particularly considering shifts in consumer demand and market volatility. Sometimes it appears business owners who own a lot of land have a head start. However, this often leads to complacency and lack of focus on intellectual capital and management intensity. This is why it is often said that “the first generation makes it, the second generation holds the business and the third generation loses it.” Why? The hard assets, such as land, can be transferred, but the critical element of intellectual capital is often not transferred to the next generation.
David Kohl received his M.S. and Ph.D. degrees in agricultural economics from Cornell University. For 25 years, Kohl was a professor of agricultural finance and small business management and entrepreneurship in the Department of Agricultural and Applied Economics at Virginia Tech in Blacksburg, Va. He was on special leave with the Royal Bank of Canada working on advanced initiatives for two years, and also assisted in the launch of the successful entrepreneurship program at Cornell University. Kohl is professor emeritus in the AAEC Department at Virginia Tech.
SAVE the
DATE! Join us for our 2019 Stockholder’s Meeting 8
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April 9
Lake Mirror Center | Lakeland, Fla. Steak and chicken will be served for lunch. Stay tuned for more detailed meeting information and an Annual Meeting Information Statement.
GET THE LEADER IN YOUR INBOX! Get instant access and stay current with Association and industry news, stories and events by having the Leader delivered to your inbox. To sign up for electronic access, visit farmcreditcfl.com/leader
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SUMMARY OF FLORIDA’S FY 2018-2019 AGRICULTURE COST-SHARE PROGRAMS By Lauren Shumate and Elizabeth Ross Water management district budgets began Oct. 1, so it’s a good time to decide if their cost-share programs interest you. Also, federal funding for similar projects is available. These programs typically invite both public and private entities to participate in project funding that further the agency’s goals such as water conservation and quality enhancement. Some programs have eligibility requirements. Here are some details and tips: Review links below and ask staff about your project idea, program pre-requisites, extending your water use permit duration, monitoring and reporting, reimbursement process, deadlines and the possibility of multiple applications for state and federal funding.
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U.S. Department of Agriculture (USDA) Natural Resources Conservation Service (NRCS) USDA’s Natural Resources Conservation Service (NRCS) Environmental Quality Incentives Program (EQIP) helps agricultural producers by providing financial assistance that covers part of the costs from implementing conservation practices. Florida farmers, ranchers and forest owners can now apply for financial and technical assistance from EQIP for fiscal year 2019 funding. See: https://www.nrcs.usda.gov/wps/portal/nrcs/main/fl/ programs/financial/
Florida’s Department of Agriculture and Consumer Services (FDACS)
modify their consumptive use permits to reflect water savings. Other region-specific programs are also available.
FDACS’ local staff are frequently knowledgeable about state and NRCS funding programs, such as EQIP. It may be worthwhile to contact your regional staff member at:
See: https://www.sjrwmd.com/localgovernments/
https://www.freshfromflorida.com/Divisions-Offices/ Agricultural-Water-Policy/Organization-Staff
Also, FDACS is administering a USDA grant program geared to enhance competitiveness of specialty crops. See: https://www.freshfromflorida.com/Business-Services/ Grant-Opportunities/Florida-Specialty-Crop-Block-GrantProgram
St. Johns River Water Management District (SJRWMD) SJRWMD offers several cost-sharing programs, with funding potentially available for agricultural interests. Cost sharing projects include water conservation and water quality/nutrient-loading reduction projects. Aquifer recharge projects may also be eligible. SJRWMD accepts applications for cost-share funding for projects in advance of setting their fiscal year budget and funds up to 33 percent of the construction costs for selected alternative water supply, water quality, flood protection and natural systems projects, and up to 50 percent for water conservation projects. SJRWMD reserves the right to recommend projects for funding that best meet strategic needs of the district. See: https://www.sjrwmd.com/localgovernments/funding
SJRWMD also accepts applications for its district wide Agricultural Cost-Share Program, which focuses on water conservation and reduction of nutrient runoff, by offering cost-sharing up to 75 percent, not to exceed $250,000 annually, of the design, construction and implementation costs for approved projects, including irrigation system retrofits, soil moisture and climate sensor telemetry, rainwater harvesting and expanded waste storage. However, recipients must
funding/#agriculture.
Southwest Florida Water Management District (SWFWMD) SWFWMD’s Facilitating Agricultural Resource Management Systems (FARMS) Program, a publicprivate partnership that provides cost-share reimbursement to reduce groundwater withdrawals from the Upper Floridian Aquifer through conservation and supply-related best management practices, including tailwater recovery and surface water pond irrigation pump stations and filtration, water control structures, electronic controls including remote irrigation zone and start/stop controls, and soil moisture and weather station climate sensor telemetry. Growers can be reimbursed for up to 75 percent of total project costs with water quality and groundwater quantity savings/conservation best management practices; and as much as 50 percent for water quality or groundwater quantity savings and conservation best management practices. Conditions include growers’ responsibility for obtaining all project-related permits and must have district authorization prior to incurring approved reimbursable expenses. See: www.WaterMatters.org/FARMS.
Suwanee River Water Management District (SRWMD) SRWMD offers incentive-based programs to help the agriculture community, including funding assistance to agricultural producers through an application and ranking process to increase irrigation efficiency and water conservation, and assist with nutrient management technology. Cost-share assistance can be 75 percent or greater of the project costs or have a maximum limit. See: http://www.srwmd.state.fl.us/index.aspx?NID=294
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Northwest Florida Water Management District (NFWMD) NFWMD provides or assists in developing funding opportunities for projects that help protect, maintain, or improve water resources by providing funding to local governments, utilities, agricultural producers and other entities. For example, NWFWMD has cost-share funding available for projects to improve water quality and reduce water use demands in and around Jackson Blue Spring provided that the project site is located within the spring’s Groundwater Contribution Area and the producer enrolls in an applicable FDACS Best Management Practices program. See: https://www.nwfwater.com/Water-Resources/ Funding-Programs
South Florida Water Management District (SFWMD)
Lauren Shumate focuses her practice on complex litigation and interned for the Hon. James. D. Whittemore of the U.S.District Court for the Middle District of Florida as well as other state court judges. Lauren was selected Fulbright Scholar to Serbia.
SFWMD’s Cooperative Funding Program provides funding to local governments, special districts, utilities, homeowners’ associations, water users, and other public and private organizations for stormwater, alternative water supply and water conservation projects. This program was suspended and will be reconsidered during the FY 2019-2020 budget year. See: https://www.sfwmd.gov/doing-business-with-us/coopfunding.
With a separate funding source, SFWMD’s Big Cypress Basin Board, located in Collier County and part of Monroe County, allocates cost-share funds for stormwater and alternative water supply projects. See: https://www.sfwmd.gov/who-we-are/governingboard/big-cypress-basin-board.
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Elizabeth Ross is a counsel attorney with Gunster practicing exclusively in the areas of environmental and administrative law. She represents clients before all five water management districts, the Florida Department of Environmental Protection and various federal agencies. Beth advises agricultural, irrigation, utility, commercial and industrial clients on attaining water rights, crafting regulations with various stakeholders and developing water supply resources that comply with federal, state and water management district requirements.
ASSOCIATION NEWS
BYLAW AMENDMENTS AND NEWLY ESTABLISHED MEMBER ADVISORY COMMITTEE By Reggie Holt, President and CEO During 2018, your Association’s board of directors
contact me or our corporate secretary, Dawn Tuten,
approved actions to better provide opportunity
if you have any questions and or comments.
for member-owner involvement in our day-to-day
In December, the board also developed and
affairs. These actions include making amendments
approved the charter for a Member Advisory
to our bylaws, as well as the establishment of a
Committee. This new committee will meet two to
Member Advisory Committee.
three times a year and provide ongoing feedback
The amendments to the bylaws were approved
to the board and management on specific market
after several months of diligent work by the board’s
needs and recommendations on how to meet
governance committee and outside counsel. The
these needs and improve the customer experience.
focus of their work involved improving the number
Committee members will serve as ambassadors
of eligible candidates for board membership and
for the Association and the Farm Credit System at
nominating committee membership positions,
the local , state and national levels. In addition,
clearing up some ambiguities to better reflect
Advisory Committee members will be provided
the changes in our marketplace and compliance
educational and leadership opportunities to
with current Farm Credit Administration rules and
enhance the pool of prospective board of director
regulations. One of the amendments clarifies that
candidates for the nominating committee. The
all borrowers that are primarily liable on loans
12 members will be distributed evenly based on
with “Class C” stock are “stockholders” of the
region, at least half of the members will be 40 or
Association and are eligible to be elected to the
younger. At least five members will be small or
board and nominating committee if designated the
lifestyle farmers. The board and management
voting shareholder by other joint holders of the
are very excited about working with this new
Association stock.
committee because we believe it will play a key role
Another amendment allows designated voting shareholders who live outside of the Association’s chartered territory to be elected to the board of
in helping us meet the current and future needs of our marketplace. Your board and management are continually
directors if the headquarters of their business
looking for ways to provide better grass roots
operation is located in the Association’s chartered
involvement in your cooperative and ensure we
territory. A complete copy of the current Amended
meet the current and future needs of the farmers,
and Restated Bylaws can be found on our website
ranchers, agribusinesses and rural homeowners of
at WWW.FarmCreditCFL.com. Please feel free to
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ASSOCIATION NEWS
NEW HIRES Megan Davila Megan Davila joined the Farm Credit family as a Commercial Loan Processor in November. Before joining our team, she worked for Bank of America in various roles. She is pursuing an associate degree from Polk State College. In her spare time, Megan enjoys spending time with family playing board games, watching movies and going to the park.
NEW PLANT CITY LOAN OFFICER CYNTHIA FALK
Michael Kunz Michael Kunz joined the Farm Credit family as a Credit Analyst Intern in November and is now a full-time Credit Analyst. Michael previously served in the U.S. Air Force. He earned a business administration degree from Polk State College and his master’s in business administration at Florida Southern College. In his spare time, Michael enjoys spending time with his family playing sports, fishing and hiking.
Mikka Mendoza Mikka Mendoza joined the Farm Credit family as a Loan Assistant/Post Closer in November. She is currently pursuing a bachelor’s degree in business administration from Polk State College. In her spare time, she enjoys spending time with family and friends, as well as exercising with her dog.
EMPLOYEE ANNIVERSARIES Anniversaries are recorded as of April 30, 2019
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We are excited to announce Plant City’s newest loan officer, Cynthia Falk! Cynthia began working at the Association in June 2017 as a Commercial Loan Servicing Coordinator and, a year later, joined our credit analyst team. Last fall, Cynthia developed and managed the Youth Loan Program and received the Association’s 2018 Award of Excellence. Cynthia grew up in 4-H and was an FFA member through middle and high school. She earned a bachelor’s degree in business administration with a concentration in management from Warner University and is now pursuing a master’s degree in accounting. Cynthia brings a passion for agriculture, leadership and strong underwriting skills to her role and looks forward to meeting you soon!
1 Year
10 Years
Kerrie Dubberly
David McDonald Jen Parrish
5 Years
25 Years
Kevin Taylor Alyssa Weaver
Regina Thomas
ASSOCIATION NEWS
NEW BROOKSVILLE OFFICE COMING SOON!
Farm Credit of Central Florida will host a grand opening for our new Brooksville office that will continue to serve Hernando, Citrus, Pasco and Sumter counties. We hope you will join us in celebrating! Watch for more details as we continue preparing for this exciting development.
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ASSOCIATION NEWS
FARM CREDIT OF CENTRAL FLORIDA CEO REGGIE HOLT PRESENTS THE ASSOCIATION’S AWARD OF EXCELLENCE TO CYNTHIA FALK.
AWARD OF EXCELLENCE: CYNTHIA FALK Recipients of the Award of Excellence collaborate well with other staff, are altruistic through their actions, loyal to the company, dedicated to Farm Credit’s mission and core values, and carry themselves with professionalism. This year, the Farm Credit of Central Florida staff chose Cynthia Falk to receive this award. In her role as Credit Analyst, Cynthia went above and beyond as a member of the AgVUE system implementation team. During her time on the team, she quickly stepped into a leadership role, learning about the system and being an integral part of the testing team. Once AgVue was released, Cynthia made a special effort to assist in onboarding the Association with the new program and training new hires on
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the program. She was also a key member of the AgVUE reporting committee and served as a liaison between the Association and the programmers when challenges arose. Last summer, Cynthia approached management about kickstarting the Association’s youth loan program. She dedicated time to research best practices and reached out to many contacts and schools to present to youth in FFA about how Farm Credit could help them. Cynthia successfully closed youth loans and made a point to educate youth on the loan process whether their loan was approved or not. Cynthia is well-deserving of this award, and we are so glad to have her on our team!
ASSOCIATION NEWS
DALE MCCLELLAN LEAVES ASSOCIATION BOARD Dale McClellan has resigned from the Farm Credit of Central Florida Board of Directors. McClellan joined the board in 2016 and was a member of the Governance and Audit committees. The seat will remain vacant until the Stockholders’ Annual Meeting, which is scheduled for this year on April 9. The Association staff offers our best wishes and sincere thanks for his years of service. We’re proud to have him as a member of the cooperative.
RESIDENTIAL SALES MANAGER GAYLE YANES READS TO FIRST GRADERS AT SPRINGHEAD ELEMENTARY SCHOOL.
FLORIDA AGRICULTURE LITERACY DAY Farm Credit of Central Florida employees Susanne Neumann, Heather Peterson, Glenda Tomlinson and Gayle Yanes read to 341 elementary students across central Florida last November in recognition of Florida Ag Literacy Day.
Previously held in the spring, Ag Literacy Day is now celebrated in the fall. Florida Agriculture in the Classroom Inc. supplies volunteer readers with books about Florida agriculture to read to elementary students. This year’s book was “These Florida Farms!”
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ASSOCIATION NEWS
Relay for Life
In September, Farm Credit of Central Florida hosted association wide kick-off parties in every office, celebrating our upcoming service event, Relay for Life. Relay for Life is a fundraiser for the American Cancer Society that is organized and run by volunteers and hosted in communities around the world with the goal of raising money to fight for a cure. We are excited to participate in Relay for Life as our primary service event for the year and to help take action against cancer. The Association will participate in the Plant City Relay for Life at Plant City High School March 29-30. Fundraising efforts have begun with our offices from charitable donations for “Jeans Day” Fridays, where employees can wear jeans if they make a charitable donation, to a fundraising bucket at the front desk of our Lakeland office. At the end of 2018, employees were divided into teams to compete in Penny Wars, a game in which each team collects pennies for points, but if another team puts dollars or other coins in the jar, points are deducted. So far, the Association has raised $3,855.
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Farm Credit of Central Florida is the leading company for dollars raised and is in first place out of 45 teams for team fundraising efforts toward the Plant City Relay for Life. We have 18 team members fundraising on our behalf and three committees focusing on promotion efforts for fundraising, communications and planning details for the event. With the event quickly approaching, we are excited to continue our fundraising efforts and to have a Florida agriculture themed booth at the event. Be sure to stop by our booth if you’re planning to attend. And, if you’d like to donate, please stop by an office or visit our team site at http://main.acsevents.org/goto/FarmCreditCFL.
CROP INSURANCE: THE SAFETY NET YOU NEED Patronage: Crop Insurance customers are members of a cooperative. This allows us to pay patronage dividends (profit sharing) to our eligible customers on their crop insurance policy. Coverage for your agribusiness loans: Crop insurance lowers production risks and helps protects against catastrophic losses. Confidentiality: Your confidentiality is of the upmost importance. With our top-of-the-line cyber security, your private information remains secure. Expertise in Agricultural Risk Management: Simply put, we know agriculture. Our in-depth working knowledge of your operation allows us to craft an accurate policy that optimizes your risk protection.
Upcoming closing dates! • Feb. 28: Whole Farm Revenue Protection (WFRP) • Apr. 15: Citrus Fruits and Citrus Trees • May 1: Nursery
Contact us today! Speak with your loan officer, or call Regina Thomas at 863.682.4117
Certain limitations, conditions and exclusions apply. Please refer to the policy for more details.
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Farm Credit of Central Florida P.O. Box 8009 Lakeland, FL 33802-8009
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