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FarmCreditEast.com
CULTIVATING GR OW TH
THROUGH LEADERSHIP A C O N V E R S AT I O N W I T H C E O B I L L L I P I N S K I
SUMMER 2017
2 | News & Views
10 | Collaboration
16 | Sunset Meadow Vineyards
3 | CBO Letter
12 | GenerationNext: Lilac Hedge Farm
17 | Scholarship Winners
4 | Cover Story
14 | Washington Update
20 | Photo Contest
N E & W V IE S WS Growing Talent at Farm Credit East We have an outstanding team at Farm Credit East, but are always seeking new talent to join us! Do you know someone who would be a great addition to Farm Credit East? Someone with the drive and passion to serve Northeast agriculture, commercial fishing, forest products and rural communities? Direct them to FarmCreditEast. com/careers to view our open positions, or put them in touch with your local branch office. Even if we don’t currently have an open position, we’d
Welcome New Board Member In April, customer-members elected a new director to the Farm Credit East Board of Directors. LouAnne King, of Madrid, NY, was elected to a four-year term in the central region. LouAnne is an owner of Mapleview Dairy LLC, a family-owned 2,800 cow dairy with 2,500 replacement heifers and approximately 4,600 cropped acres. LouAnne King
In other results, Lisa Sellew, of Lebanon, Connecticut in the eastern region, and John Knopf, of Canandaigua, NY in the western region, were reelected to four-year seats. Additionally, Peter Barton, of Poughquag, NY, was reelected to a one-year seat in the central region.
love to get the conversation started.
Visit us at Empire Farm Days! Stop by and visit Farm Credit East at this year’s Empire Farm Days. The show will take place August 8, 9 and 10, 2017 at Rodman Lott & Son Farms in Seneca Falls, NY. Farm Credit East will be raffling a pair of outdoor rocking chairs each day of the show, so be sure to visit our tent at 528 East Seneca Acres Ave. to enter for your
Lisa Sellew
We congratulate the winning candidates. Thank you to our customer-members for voting and to our nominating committee for providing a great slate of candidates. John Knopf
chance to win.
Looking for local farm products? Are you looking for fresh, quality farm products in your local area? Farm Credit East’s Farm Fresh Guide provides a listing of resources to find local farm products throughout our seven-state region. Visit FarmCreditEast.com/FarmFreshGuide to learn more.
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FINANCIAL PARTNER
Peter Barton
At the April 25 reorganization meeting, the Board reelected Matthew Beaton, of Wareham, MA, as its chair, and elected Henry Huntington, of Loudon, NH, as vice chair. The Board’s five-member Executive Committee includes Chairman Beaton and Vice Chair Huntington, along with Peter Call, Batavia, NY, Daniel Corey, Monticello, ME, and Laurie Griffen, Stillwater, NY.
In addition to those recently elected to the Board and those elected to leadership and Executive Committee positions, the Board includes: Michael N. Brooks, Elmer, NJ; Tim C. Chan, Claremont, NH; Skip Hardie, Lansing, NY; Richard P. Janiga, East Aurora, NY; James A. Robbins II, Searsmont, ME; Douglas W. Shelmidine, Adams, NY; Diane D. Souza, Little Compton, RI; and Peter H. Triandafillou, Orono, ME.
HOW MUCH MONEY ARE YOU LEAVING ON THE TABLE? Jim Putnam — Farm Credit East Chief Business Officer This colorful phrase has become part of popular jargon. It speaks to not getting as much money as you could, or missing an opportunity. In Northeast agriculture, forestry and fishing, we observe a wide-range of profitability among individual operators, year in and year out. There are a variety of reasons for this range, but the key one is management. Without effective business management, you may be leaving money on the table. For all your hard work and investment in business assets, you want to be more profitable. Additional profits enable you to improve family standard of living, build your retirement funds, assist the next generation, reinvest in the business or to use however you see fit. Estimates are that $600 million in profitability is missed each year (on $8.4 billion of gross sales) in Northeast agriculture, based on the gap between profitability of the 25 percent most profitable farms and the average of all farms. Even if my estimate is off by 50 percent, it’s still BIG! I am a realist and I do not propose that improved management can move all that profit potential from “the table” to farmers’ checking accounts. I am passionate, however, that we at Farm Credit East need to provide all the tools in our belt to assist in optimizing your profit potential. It’s no doubt difficult to relate to my industry estimate, so let’s drill down to a more individual level. Based on the 457 farms in our 2016 Northeast Dairy Farm Summary, the Top 25 percent profit farms earned an additional eight cents of profit on every dollar gross income of milk sold compared to the “All Farms” average. Eight cents on every dollar! (Do the math for your own operation by multiplying gross product sales by eight percent.) Based on the financial information that
Farm Credit East receives, I believe that eight cents/dollar is a reasonable estimate across all farm, forest products and fishing businesses here in the Northeast. Over 100 years ago, the Farm Credit System was established by Congress to “improve the income and well-being of American agriculture” by providing dependable, affordable access to credit. In 1971, our charter was expanded to services that would assist farmers to better achieve their profitability potential.
CASE IN POINT For the past 38 years, the Northeast Dairy Farm Summary has measured profitability potential on a large sample of farms. Once again, the 2016 numbers tell the same story of profits left on the table.
4 57 DAIRY FAR MS BY P R O F I TA B I L I T Y 25 % LE AST PROFITABLE
Estimates are that $600 million in profitability is missed each year in Northeast agriculture (on $ 8 .4 billion of gross sales)
Net Earnings per Cwt. % of Avg. Milk Price
-12%
Net Earnings per Cow Net Earnings per Worker Equivalent*
Today, we offer a long list of tools: recordkeeping, CenterPoint accounting software, tax services, payroll, business consulting, benchmarking, Dairy Profit Analysis, Knowledge Exchange, GenerationNext, crop insurance, and of course, loans of all types. These tools are available to producers of all sizes and all industries across our territory. Improving the income and well-being of American farmers, forestry producers and fishermen through loans and services: it’s our Farm Credit commitment to you.
($471) ($21,779)
AVER AGE
Net Earnings per Cwt. Here in the Northeast, Farm Credit East was an early and passionate adopter of offering services that would assist our borrowers in optimizing their profitability potential.
($1.94)
$0.06
% of Avg. Milk Price
0%
Net Earnings per Cow
$15
Net Earnings per Worker Equivalent*
$720
25 % MOST PROFITABLE
Net Earnings per Cwt. % of Avg. Milk Price
8%
Net Earnings per Cow Net Earnings per Worker Equivalent*
$1.38
$356 $17,025
*including family and employees SUMMER 2017
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FINANCIAL PARTNER
CULTIVATING GROW TH THROUGH LEADERSHIP A CONVERSATION WITH
CEO BILL LIPINSKI Bill Lipinski has been in the Farm Credit family for nearly 40 years, and has served as Chief Executive Officer for more than half of those years. But his passion for agriculture began long before his time with Farm Credit East.
Bill Lipinski grew up on his family’s farm,
working across New York State providing
that are committed to serving Northeast
showing sheep and dairy cattle, participat-
appraisals and sales research. He was hired
agriculture, commercial fishing and forest
ed in 4-H and was involved at county fairs.
after graduation and promoted through a
products, and who have worked together to
He attended Cornell University and earned
number of positions, including being the
grow and enhance Farm Credit East into the
a degree in agricultural economics. While
youngest branch manager, before becoming
strong association it is today.
in college, he was involved in the dairy
CEO in 1994.
judging team and president of the ag fraternity Alpha Gamma Rho — this instilled his desire to lead.
With a resume like this, Bill has witnessed tremendous innovations in technology and experienced the advances, and the
He began his career with Farm Credit
blows, of various cycles in agriculture. He’s
as an intern his junior year of college,
also led a team of top-notch employees SUMMER 2017
5
Kristie Schmitt, editor of Financial Partner, recently sat down with Bill Lipinski to tap into his wealth of knowledge and experience, and to share some of the lessons he has learned along the way.
KS: What has been a defining moment of your career? BL: There have been many — especially seeing farm owners take risks that result in great success. But I’ve also had a lot of teachable moments working with customers that are struggling. These experiences made me more compassionate, and were rewarding when I could contribute to them coming
Kristie Schmitt: What led you on your path to Farm Credit East? Bill Lipinski: Showing animals and judging
out the other side. In one particular experience, I turned down a young dairyman’s loan request and he said
dairy cattle was probably one of the most
to me, “I obviously didn’t do a very good
influential experiences in my early develop-
job in supporting my request. It’s on me to
ment. In judging, you have to evaluate the
convince you that I should get this loan. Not
animals, make a quick decision as to how
on you to say yes.”
to place them and then you have to explain your decision. In many respects, this is
That’s a viewpoint that I’ve always taken
similar to a lending decision. As a lender,
— it’s not my fault if I had to say no based
you have to evaluate a situation, make a
on the information provided. On the other
decision on whether you’re going to extend
hand, Farm Credit East is committed to con-
more capital, and then concisely explain
tinuing to work with customers, so I enjoy
your loan decision.
those times when we are able to support a request that turns into a positive story.
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FINANCIAL PARTNER
KS: What is some key advice you have for young professionals? BL: Be curious. I pride myself on continuous learning throughout my career. Growing up, I was knowledgeable about all kinds of livestock, thanks to my Dad. He knew about dairy, swine, sheep, horses, etc. Then I started in Farm Credit’s Dayville, CT, office handling large chicken loans. So, I had to learn pretty quickly about the chicken business, along with some of the other diverse Northeast agriculture industries — crop, nursery, greenhouse, fishing, timber, etc. I immersed myself in understanding all types of agriculture to develop my expertise. I was curious. Ask questions. People love when you ask questions about their business, just like I love when customers ask me about finance and capital strategies. It shows me they’re interested and engaged. My advice to anybody, in any industry, is to be intellectually curious, humble and to be able to wear the other shoe. Always think of a situation from the other’s perspective.
age, it’s about desire, drive, and the willing-
I had to work with. I’ve watched plenty of
ness to execute and make decisions. I hope
leaders nuke everybody to build the team that
to leave Farm Credit East better than when
they want. To me, it’s more rewarding to take
I got here, and a big part of that is develop-
the team you’re dealt and make it successful.
Also, don’t volunteer advice. When people
ing potential leaders to lead the organization
come out of formal training — whether a
into the future. So we’ve worked hard to
two-year or four-year school, or whatever
identify, develop and train staff — to instill
it might be, they tend to perceive them-
confidence to lead.
selves to be experts. But people won’t value your advice and seek your counsel until you’ve earned it.
fictitious set of job requirements. I figured out what each team member was good at and assigned job duties that suited their
We also have an important leadership role
skills. I managed to my team’s skills sets,
in the Northeast ag community. Whether
and I’m proud of the outcomes.
Farm Bureau, 4-H, rural community or ag
And, finally, make a decision. As a young
development organizations — all need
employee, I quickly learned that customers
people who are willing to assume leader-
want decisions and want to understand how
ship roles and who want to volunteer their
that decision was reached. I find people get
time and talent. Farm Credit East provides
more frustrated with your inability to act. If
and supports leadership training and devel-
you say no to their dreams, they’ll be upset
opment with the intent that all ag-related
with you regardless, but at least you didn’t
entities will have people who want to step
stall for months and then say no.
up. Their leadership is important to the communities we serve.
KS: Leadership development is a key priority of Farm Credit East — both for your staff as well as in the industry, exemplified through programs such as GenerationNext. Why is this such an important focus?
I didn’t structure Farm Credit East around a
Another important component of leadership is the team built around that leader. I think any successful person or business is just a continuation of their team.
KS: How does Farm Credit East differ from other lending institutions? BL: Farm Credit East’s main differentiator is our laser focus on our mission to serve agriculture, forest products and commercial fishing in the best way possible. That focus shapes everything we do. We’ve framed a culture built around our customers’ success versus the entity’s success, and we hire people that want to work in that environment. Yes, other banks also have a customer focus, but ultimately, their success is measured by how well they treat their
BL: Companies that aren’t led well tend to
One of my proudest accomplishments as a
investors. Yes, Farm Credit East has to build
go in circles. Leading isn’t about tenure or
leader is the team I built with the employees
capital and have earnings, but it’s so we’re SUMMER 2017
7
Our goals are to provide the best possible customer experience today while building the cooperative for future support of the ag community.
able to fund the next generation and to
ger. We’ve merged for the sake of serving
fund agriculture in good times and in bad.
customers better.
KS: How have you watched Northeast agriculture evolve?
The risk in agriculture today is also so much
BL: The changes I’ve seen in agriculture,
This focus resonates through our team.
greater. We need the financial capacity to
commercial fishing and forest products have
Our goals are to provide the best possible
withstand cycles and to ensure we’re here
been dramatic and constant since my youth.
customer experience today while building
for the next generation, and we’ve achieved
The industry has certainly become more
the cooperative for future support of the ag
that. We’re going through a dairy cycle right
specialized — whether specialization in
community. To ensure this, the whole team
now and we have the financial capacity to
certain commodities, growing livestock
is focused on customers and assisting in
let customers make their own decisions
operations, precision agriculture, differenti-
Northeast agriculture’s success.
about their future, and to go a few extra
ating plants, hydroponics — all those things.
years to make adjustments if they need to.
There’s also a divergence of people who
That’s a completely different focus.
To maintain our customer-focus, we hire
BL: The original Farm Credit model was to
committed to doing the right thing for the
rent money from Wall Street to the farm gate
customer and the cooperative. And, we
Agriculture, commercial fishing and forest
in the most efficient way possible. In stick-
need to retain those people. Our customers
products have also become a lot more
ing with this model, my three areas of focus
demand quality and consistency in the staff
innovative, and with that, riskier. There are
in building Farm Credit East were to be
they work with, so we strive to provide the
a lot of innovative agricultural techniques,
operationally efficient, build the necessary
best possible staff.
freezer trawlers in the fishing industry, the
capital and be exceptionally well-staffed.
8
have begun lifestyle farming and others that
KS: During your tenure, what have been some of the major evolutions of Farm Credit to better serve Northeast producers?
people that will execute our strategy; that believe in our strategy; and that are
To retain quality people, I have to be able to
are doing unique things to take advantage of market opportunities, such as the increased demand for local foods.
evolution of the chain saw to mechanical harvesting in the timber sector. We have to
Agriculture is evolving, so to best serve
compensate and they have to feel like they’re
the industry, we needed the size and scale
working for a winning company. The business
to be able to grow with our customers.
needs to be growing in some way, shape or
When your customers are outgrowing the
manner, to create an optimistic culture that at-
organization, you start to be less of a part-
tracts committed employees. That’s one of the
ner. But with customers as Farm Credit
reasons growth has been such an important
East’s priority, it’s important to maintain
part of Farm Credit East’s story over the last
BL: Hope is not a strategy. As you take on
local relationships and to be big enough
20 years. Growth is not self-serving. It’s about
risk, you need to have multiple strategies
to do that. We haven’t merged for the sake
creating a winning culture and a winning
for success, and be willing to make right-
of merger, or for the sake of getting big-
company that attracts people to stay.
hand turns to adapt.
FINANCIAL PARTNER
be willing to learn and employ a part of our capital for emerging, often riskier, areas. KS: Do you have any words of wisdom for those producers facing challenging times?
This doesn’t come without concern. While our region has advantageous market opportunities, these same opportunities present obstacles. The Northeast has some of the heaviest regulatory burdens and costs. Our proximity to people and the coast puts us on the forefront of the negative impact of policy changes that allow producers to operate. My concern is when consumers and folks outside of agriculture make emotional decisions and not sciencebased decisions. This will have a negative impact on agriculture — producers need technology and science to remain competitive in global markets. To best serve this evolving marketplace, One of my jobs is to give our Board enough
customer retention and customer service.
Farm Credit East will continue to focus on
data to make decisions. I have to be forward-
We have strong earnings and the capital
efficiency. We’ll offer products and services
thinking and evaluate the probability of
necessary for growth, but we’re not in an
that aren’t being met in the marketplace.
different scenarios.
expansive market.
We won’t waste time competing in areas
The same holds true for farm operations.
That’s our biggest risk. We can manage our
What if the price doesn’t increase? What if
staff and we can do our job, but finding that
you can’t be competitive with the national
next growth engine is difficult.
cost of production? What’s your strategy? You also have to be willing to change. There’s a mentality in agriculture that, “This is what I’ve always done, so I’m just going to keep doing it, even if I keep losing money.” Know your data. Know your business. Follow and understand market forces, and be willing to make changes accordingly. I don’t know what those changes will be, but be ready for them. KS: What are some of the issues Farm Credit East faces? BL: We have a high market share in industries that aren’t growing, so we carry a lot of credit risk. As business conditions change, it has both positive and negative impacts on Farm Credit East. Not everyone makes it through the difficult industry cycles, so that’s certainly a challenge.
that we’re not good at. We’ll maintain our laser-focus on specialization and highly empowered staff, and continue to develop their expertise so that they’re a valuable partner to our customers in the future. It’s this focus
KS: What’s your vision for the future of Northeast agriculture and Farm Credit East’s role in it?
that will grow our financial services practices, helping producers identify the data points they need to be successful.
BL: I’m optimistic. Our customers operate some of the best businesses in the world, and the growing world population will continue to demand their products. Technology is only going to evolve, which may create challenges for some businesses, but will allow others to progress.
KS: After you’ve retired, and reflect back on your time at Farm Credit, what do you think will come to mind? BL: The people. Most of my memories center around helping and watching people succeed. Having someone try something
Northeast producers should renew their
they weren’t thinking about and having
focus on the great market advantages we
it work out. I got involved in agriculture
have over other parts of the country. Many
to help people achieve their dreams,
producers have benefit from the growth and
their goals, their successes and to make
prices in commodity agriculture over the
a difference. I’ll miss the direct ability to
last decade, but now we’re in a low com-
impact success and make a difference in
modity price cycle. Producers need to take
Northeast agriculture. I also expect to be
advantage of our proximity to markets and
involved directly, or indirectly, for many
water resources, and the transportation
years to come.
differentials we benefit from.
The competition is also getting more aggressive. It’s hard to replace any businesses we might lose, so we have to focus on SUMMER 2017
9
A LENDER’S PERSPECTIV E Jan Bitter — Farm Credit East Cortland, NY Branch Office Manager
Read any business journal and you’ll find articles on the value of collaboration for business success. Farms today are collaborating in ways that would have been unthinkable a generation ago. Joint ventures, mergers and working in arrangements are just a few of the ways that farm businesses are sharing resources to become more efficient and to ensure the future of their operations. Collaboration can transform a business
In my experience, a more common rea-
for the better. Working with outsiders
son for collaboration failure is incompat-
may give you a fresh perspective and add
ible values. As people consider going into
talent to your operation. It can improve
business together, they often focus on the
asset utilization and clarify the succession
farm operation’s goals: How many acres of
plan for the farm. And, when in business
crop ground will we get to in the next five
with non-family members, management
years? Where should we put the new heifer
may need to be more formal — developing
barn? When you share the same goals for a
organizational charts, meeting schedules,
business, it’s easy to assume that you share
financial reporting, etc.
the same ideas about how to achieve those
There is a tendency to assume that collaborative efforts fail because of financial problems. That is sometimes the case —
goals. That may not be the case, especially when you and your business partner have different values.
especially when the operations involved
It’s important to talk with business partners
share the same financial weaknesses. It is
about values before you find yourself in an
certainly true that your new entity must
incompatible relationship. Outlined here are
have adequate capital and earnings to suc-
three common areas where differing values
ceed in the long run.
may lead to conflict in the business relationship: Money, Roles and Temperament.
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FINANCIAL PARTNER
Money
Schedules — You’re in the barn every morn-
Spending — There are successful farms with
ing by 5 a.m. Another partner doesn’t show
impeccable landscaping, shiny new paint
up until 10 a.m. and leaves early, but he
and all the latest technology. There are also
happens to be the son of the senior partner.
successful farms with no landscaping, facili-
What can you do about this?
ties that were fully depreciated ten years ago and the only technology in the tractor is the radio. If these two farms were to merge, they would want to have clear guidelines on who has the authority to spend money.
Spouses — Will spouses have a role in the business? Where do they fit into the organizational chart? Are new owners expected to have a prenuptial agreement?
two kids in college have the right to take
Temperament
more money out of the farm than the 25-
Personality Styles — If you are a person who
year old single partner? Maybe, but you
screams, and I am a person who cries when
ought to be clear about how the higher
someone screams at me, it’s unlikely that we
draws impact the business and each part-
will have a productive working relationship.
Compensation — Does the partner with
ner’s capital account.
Some farms have successfully used personality
Debt — There are farm managers who
tests to learn more about the make-up of their
can’t sleep at night if they have outstand-
teams. These tests are typically administered
ing debt. There are others who feel that
by a consultant who gives advice on how team
they aren’t maximizing their return on
members can work together more effectively.
equity if they aren’t leveraged to the hilt. Explore attitudes about debt before going into business with someone.
Communication Skills — Some people are very comfortable talking with their business partners about their values. Others hope
Capital — Often when farms go into
that by not talking about their problems,
business together, one owner is better
they will go away.
capitalized than the other. Does the better capitalized owner therefore have veto power over major decisions? Recordkeeping — Who will keep the farm’s books and how often will they provide financial reports to the owners?
Roles Decision-Making Authority — Can a manager
Adaptability — We can guarantee that if you go into business with someone, not everything will continue to be done the way it always has been. Can you adapt to change? Generational Issues — You may believe that you are giving your young partner lots of responsibility very quickly. They may perceive that they are making no progress. Different generations have different expectations.
make changes to protocols without consult-
Conflict Resolution — Every relationship
ing others? How much money can a partner
has conflict. Decide up front how you will
spend without checking with other partners?
resolve it when it arises.
Human Resources — Following the merger of
The business journals are right.
two farms, a young manager is put in charge
Collaboration does have the
of cropping operations. The head mechanic
potential to make your business
has held his position since the new manager was in diapers and refuses to report to anyone besides the owner. Do you allow this?
ADVICE FOR AVOIDING COLLABORATION PITFALLS
more successful and it may well improve your lifestyle as you share some of the responsibilities of management with others.
• D O N ’ T R U S H I N TO A N Y T H I N G Consider a trial period before making financial commitments.
• U S E A FA C I L I TATO R F O R N E G O T I AT I O N S It may be easier for a third party to bring up sensitive issues.
• B ECOME MORE PROFESSIONAL IN THE WAY YOU MANAGE YOUR BUSINE SS Businesses run more smoothly when there is formal communication, outlines of expectations, routine financial reporting to management, etc.
• A D V I S O R Y T E A M A facilitator will help you to get past issues during your new entity formation. Regular meetings with an advisory team will help to ensure that sensitive issues are addressed on an ongoing basis.
• P U T YO U R U N D E R S TA N D I N G IN WRITING Operating agreements are important. Buy-sell agreements are critical. Annual Certificate of Value should be signed off by all owners. SUMMER 2017
11
Lilac Hedge Farm’s Tom Corbett with Farm Credit East loan officer Patrick Hostetter
Developing the Next Generation of Managers Tom Corbett and Ryan MacKay began Lilac Hedge Farm in 2011, at just 21 years old. They began renting various pieces of property, and in 2015 were fortunate to purchase 350 acres in Holden, MA, allowing them to grow and improve efficiencies. In addition
Lilac Hedge Farm was a 2016 Farm Credit Fresh Perspectives Recipient
Organizational charts were another takeaway. “It’s really beneficial to understand who answers to who,” Tom explained. “In peak season, we employ about 15 people.
to the property they now own, the business
Ryan and I run the business, and even
partners also use two other properties to
The class covered topics like how to review
though we’re on two different sides of the
graze their animals and produce hay.
balance sheets and income statements,
operation, people were answering to both
including variable expenses, overhead costs,
of us. This created confusion. Establishing
costs of goods sold, and projections — and
an organizational chart to define who an-
then how to use this information to make
swers to who really helps relieve stress.”
Lilac Hedge Farm raises beef, pork, lamb, chicken and turkey. The meat is sold direct retail through farmers’ markets and a CSA, as well as wholesaling some product to local restaurants and a few farm stands in the Massachusetts area.
sound business decisions.
Developing protocols
Business management “Overall, GenerationNext provided the op-
One of Tom’s biggest take-aways was devel-
portunity to step back and analyze how we’re
About five years into the business, their
oping protocols. “It was pretty eye-open-
running the business,” he said. “It’s easy to
Farm Credit East representative mentioned
ing,” he said. “It’s the everyday tasks that
get caught up in day-to-day tasks. In the class
to them an upcoming GenerationNext
you assume everyone knows how to do, but
I found myself thinking, ‘O yeah, that makes
program that might be beneficial in their
when you actually write them down, there
sense ... I do that way too much!’ It’s the stuff
development as new business owners. Tom
are quite a few steps involved. It made me
you don’t think about without being in that
decided to attend.
think about how we explain things versus
type of group setting and actually talking
what’s actually involved — you don’t realize
about it. It adds a new perspective.
“I really enjoyed bouncing ideas off of other participants and getting different perspec-
how much you don’t say. “It really is a beneficial program for anybody
tives,” Tom said. “It was interesting to see
“Establishing formal protocols has made it a
in the early stages of management,” contin-
different ways to look at things and learn
lot easier to take on new staff,” he continued.
ued Tom. “The concepts covered apply to
how others work through problems. It was
“Staff now has guidelines on top of what
any style of a business, so I’ve been recom-
helpful, too, to see where others were at in
we’re teaching them hands-on, so if they
mending it to everyone!”
the learning process and apply it to where I
have a question, they can go back to the pro-
was at, and maybe take some advice or les-
tocol and understand the steps involved.”
sons learned back to my operation.” 12
Establishing an organizational chart
FINANCIAL PARTNER
Farm Credit East’s GenerationNext seminar series is designed to advance management skills and business knowledge. The program is optimal for producers, ages 20 to 35, who will be the next generation of operators. Each seminar includes group discussions, idea sharing and networking opportunities. The program helps to: • Identify areas for personal growth and development • Acquire tools to help manage an agricultural business • Network with other young industry leaders Sessions are typically held over the winter months. Contact your local Farm Credit East office to learn more about upcoming sessions in your area.
Over the years, participants have asked if there was a follow up program to GenerationNext, so this year Farm Credit East piloted GenerationNext2. Targeted to GenerationNext graduates and other mid-career producers, the first GenerationNext2 program was held in conjunction with Farm Credit East’s Annual Meeting this past March in Albany, NY. Titled, “Leadership in Your Business and Beyond,” the program covered strategic management and leadership topics for participants to apply to themselves and their operations, and to stimulate thinking about challenges beyond their own businesses. “The session covered a number of issues in the areas of strategy, leadership styles, legal issues and generational transfer that relate to me and our business, and that I can apply back home,” said Kelsey Lain Gurda, of Pine Island Turf Nursery in Pine Island, NY. “And it’s always beneficial to be with other young farmers who are facing the same challenges.” A number of mid-career Farm Credit East staff also participated in the program alongside the producer participants. In addition to providing a development opportunity for mid-career staff, this format reflected that Farm Credit East staff members are often an integral part of the team when working on solution’s to tackle a producer’s strategic challenges. The program kicked off with Farm Credit East’s Annual Meeting to provide a first-hand look at Farm Credit East’s cooperative governance. The program also included a networking opportunity with Farm Credit East’s Board of Directors. Let your local branch office know if you’re interested in participating in a future GenerationNext2 session.
WASHINGTON Update
Tom Cosgrove Senior Vice President for Public Affairs
Uncertainty about Agricultural Labor as Legislation is Introduced The new Administration’s statements on immigration policy have led to a mix of optimism and concern among producers who employ immigrant workers. President Trump has continued the strong rhetoric from the presidential campaign regarding illegal immigration. His 2018 budget requests funding for a border wall and increased staffing for the Department of Homeland Security (DHS) for Immigration and Customs Enforcement (ICE) and border patrol agents, making it one of the only federal agencies with proposed increases in staffing. Statements by the president and new
working toward a permanent solu-
would not be unduly harmed by im-
Agriculture Secretary Sonny Perdue
tion to the agricultural labor issue.
migration enforcement efforts.
On April 25, the day Secretary Per-
This position was underscored in
due was sworn in, the White House
a subsequent interview with The
hosted a meeting with 14 producers,
Economist, where the president
at which the president assured the
said, “We also want farm workers
group they would have access to
to be able to come in. You know,
foreign-born workers and that farms
we’re going to have work visas for
regarding foreign-born agricultural workers, however, have taken on a more conciliatory tone. Producers are waiting to find out if the administration’s accommodating statements will take precedence when it comes to enforcement on farms and
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the farm workers. If you look, you
separately address the two primary
is supposed to allow employers to
know we have a lot of people com-
policy concerns in the agricultural
do an instant legal status check on
ing through the border, they’re great
labor debate: the need for an effec-
prospective employees. The bills to
people and they work on the farms
tive guest worker program and how
make permanent and mandate the
and then they go back home. We
to address concerns about the cur-
use of e-verify are S. 179 and H.R.
like those people a lot and we want
rent workforce.
2461, which is sponsored by Repre-
them to continue to come in.”
H.R.281, cosponsored by New York
sentative Lance (NJ).
About the same time as the presi-
representatives Stefanik, Collins,
Many agricultural employers are
dent’s comments to The Economist,
Faso and Tenney, addresses the
concerned that implementing e-
however, a report posted on the
guest worker component as it would
verify before the legal status of the
DHS website touted its increased
allow operations with year-round
current workforce has been ad-
arrests and deportations in the first
labor needs, like dairy and other
dressed will be highly disruptive. At
100 days of the Trump Administra-
livestock operations, to access the
a recent agricultural labor meeting,
tion. The post noted that while the
H-2A visa program. The bill would
a participant said he would love to
enforcement focus is still on illegal
also streamline the program and
have the convenience and certainty
immigrants who have committed
move its administration from the
of a workable e-verify system, but
crimes, “Homeland Security Secre-
Department of Labor to the Depart-
given the current composition of the
tary John F. Kelly has made it clear
ment of Agriculture.
agricultural labor force, the country
that ICE will no longer exempt any class of individuals from removal
S. 1034, cosponsored by Senators
is simply not ready for it.
Leahy (VT) and Gillibrand (NY),
The administration has signaled its
focuses on the current workforce
views on e-verify in its 2018 budget
by proposing a “blue card” program,
request, which includes funding
Given enforcement concerns, a
where undocumented workers who
for and assumes the adoption of
Northeast agricultural labor work-
have worked consistently in United
mandatory e-verify within the next
group has been meeting with
States agricultural jobs can obtain
three years. And while Congress
Northeast members of Congress to
legal status if they pay a fine and
will determine whether or not such
express concern about enforcement
pass a background check. The bill
an initiative will be funded, it is
and to advocate for revised policies.
provides a path to legal residency
another example where we will find
In participating in this group, Farm
if they continue to work in agricul-
out if the administration will take a
Credit East seeks to provide analy-
ture. Representatives McGovern
hard line position or if it is willing
sis of the negative impact of not
(MA) and Kuster (NH) are cospon-
to work to accommodate the unique
resolving the agricultural labor issue
sors of H.R. 2690, the House version
circumstances of agriculture.
on farm viability and the Northeast
of the legislation.
proceedings if they are found to be in the country illegally.”
economy in general.
Bills have again been introduced in
In Congress’ current session, two
both houses of Congress to mandate
bills have been introduced that
the use of the e-verify system, which
SUMMER 2017
15
Chris Chichester, George Motel IV, George Motel III and Judy Motel of Sunset Meadow Vineyards with their Farm Credit East tax specialist Kirk Williams and loan officer Colin Hostetter.
RECORDS, TAXES, PAYROLL & BENCHMARKING SERVICES
George Motel and his wife Judy purchased their farm in the early 1990’s. Initially they grew hay and raised beef cattle. However, a few years into their new farm business, following a bit of research and some insight from folks in the wine industry, they realized their 50 acres of land in Goshen, CT, was prime property to grow wine grapes. So, they planted their first crop in 2000. Today, Sunset Meadow Vine-
The family got started with
yards is a family-run operation.
Farm Credit East just after
George manages the chemis-
opening the winery. “Startup
try of the wine-making and
businesses have their own in-
handles the administrative
tricacies, and Farm Credit East
functions of the company. Judy
understood that,” commented
handles much of the back of-
George. “We also took on a lot
fice operations, including man-
of new projects as the busi-
aging the website and social
ness grew — new buildings,
media. Son George IV manages vineyard and production op-
Sunset Meadow Vineyards
new equipment, additions
- GOSHEN, CT
erations, and son-in-law Chris oversees the tasting room and retail operations. “As is the case with any small business, we all wear a lot of different hats,” George notes.
much of the capital to enable these expansion projects to happen,” he continued. The family uses Farm Credit East’s records, tax and payroll ser-
The family grows 14 different grape varieties on 33 planted acres. From
vices, as well as participates in the winery benchmarks program.
these grapes they produce 21 different wines, with the majority being
“Agricultural accounting is just a different animal,” said George.
varietal estate wines produced entirely from homegrown grapes.
“I wanted to make sure our farm’s accounting was getting done
“The business has really come a long way from when we first started,” said George. “It was initially a retirement project for my wife and me, but then my son decided he wanted to come into the business, and later my son-in-law, so we’ve grown the business to include them.”
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— Farm Credit East provided
FINANCIAL PARTNER
correctly. I found that Farm Credit East had the expertise in agriculture and agricultural accounting. They understand the industry and they understand our business.”
M E E T
O U R
3 2
SCHOLARSHIP WINNERS E A C H
E A R N E D
$ 1, 5 0 0
T O W A R D
Farm Credit East congratulates our 32 scholarship winners, all aspiring to make a difference in their communities. This year students earned a collective $49,500 in scholarships to help them on their way to becoming the Northeast’s future agricultural leaders.
H I G H E R
E D U C AT I O N
Our scholarship supports students with a diversity of agricultural career aspirations and farm backgrounds from across our sevenstate territory. Congratulations to these deserving students and best wishes for a successful educational experience.
C O N O R S M I TH
CONNECTICUT
North Granby, Connecticut
C H R I STO PH E R B I S CH O FF
UNIVERSITY OF NEW HAMPSHIRE MAJOR: FOREST TECHNOLOGY CAREER PATH: LICENSED ARBORIST
Meriden, Connecticut NAUGATUCK VALLEY COMMUNITY COLLEGE MAJOR: HORTICULTURE CAREER PATH: ORCHARD OWNER
Christopher hopes to have a career as an orchard owner, using the skills he’s learned in horticulture to grow healthy crops and educate his local community.
Conor hopes his commitment to agricultural mechanics, animal care and arboriculture will lead him to a career as a licensed arborist and farmer. MASSACHUSETTS
M E GAN H E B E RT
G RAC E BARTL E TT
Woodstock, Connecticut
Nantucket, Massachusetts
UNIVERSITY OF CONNECTICUT MAJOR: AGRICULTURE AND NATURAL RESOURCES CAREER PATH: DAIRY FARM MANAGER/OWNER
Megan’s goal is to expand her family’s diversified operation to include local food production and sustainable dairy farming practices.
BA I LEY JACQ U I E R
YALE UNIVERSITY MAJOR: ENVIRONMENTAL STUDIES CAREER PATH: ENVIRONMENTAL CONSULTANT
Grace hopes to return to Nantucket after graduation and apply her environmental studies to help farms lessen their environmental impact, while increasing efficiency.
M AE V E R OTH S C H I L D - S H E A
Canaan, Connecticut
Wilbraham, Massachusetts
CENTENARY UNIVERSITY MAJOR: EQUINE BUSINESS MANAGEMENT CAREER PATH: EQUINE FARM MANAGER/OWNER
Bailey’s love for horses started at an early age. She hopes to use her knowledge of equine business management to own and operate a horse boarding barn.
J ONATHAN R U S S O Norwalk, Connecticut UNIVERSITY OF CONNECTICUT MAJOR: AGRICULTURE AND NATURAL RESOURCES CAREER PATH: AGRISCIENCE TEACHER
Jonathan plans to educate the next generation of agriculturalists in hydroponics, aquaponics and their urban farm applications, while continuing research on hydroponic technologies.
UNIVERSITY OF RHODE ISLAND MAJOR: SUSTAINABLE AGRICULTURE & FOOD SYSTEMS CAREER PATH: URBAN AGRICULTURIST
Maeve aspires to a career in urban agriculture to provide fresh, healthy food for those who cannot easily obtain it. MAINE
S H E R M AN B R E W E R Southport Island, Maine NORTHEAST MARITIME INSTITUTE MAJOR: NAUTICAL SCIENCE CAREER PATH: COMMERCIAL FISHERMAN/SHIP CAPT.
As an eighth-generation Southport Island native, Sherman comes from a long line of commercial fishermen. He aims to follow those footsteps by earning his captain’s license to make his living on the water.
SUMMER 2017
17
DAY NA M CCR U M
S E R E N E B O R O N OW
Mars Hill, Maine
Munnsville, NY
HUSSON UNIVERSITY MAJOR: BUSINESS ADMINISTRATION CAREER PATH: FARM MANAGER/OWNER
SUNY COBLESKILL MAJOR: FOOD SYSTEMS AND TECHNOLOGY CAREER PATH: FOOD SCIENTIST
Dayna has a deep passion for the potato industry and she looks forward to returning home after graduation as the sixth generation on her family’s potato farm.
A R I A NA WAD SWO RT H
K RYS TL E B U R G E R
Thomaston, Maine
Adams, NY
CORNELL UNIVERSITY MAJOR: VETERINARY MEDICINE CAREER PATH: LARGE ANIMAL VETERINARIAN
MORRISVILLE STATE COLLEGE MAJOR: DAIRY SCIENCE & AG BUSINESS DEVELOPMENT CAREER PATH: DAIRY FARM MANAGER/OWNER
Ariana’s undergrad experience with livestock at the University of Maine persuaded her to pursue veterinary school. She aspires to be a production animal veterinarian. NEW HAMPSHIRE
B R I A N NA HAN S O N Strafford, NH UNIVERSITY OF NEW HAMPSHIRE MAJOR: ORNAMENTAL HORTICULTURE CAREER PATH: CROP FARM MANAGER/OWNER
Brianna aims to be a farm owner focused on the quality of crops and positive relationships with customers.
Krystle is eager to return home after graduation to contribute her education and experience to her family’s dairy farm.
S U Z AN N E F O OTE Hartford, NY ALBANY LAW SCHOOL OF UNION UNIVERSITY MAJOR: JURIS DOCTOR CAREER PATH: AGRICULTURAL LAW
With her degree, Suzanne hopes to represent New York State farmers and help guide the laws that affect the state’s agricultural production.
AN D R EW LU PI N S KI Goshen, NY BINGHAMTON UNIVERSITY MAJOR: BIOLOGY CAREER PATH: FARM MANAGER/OWNER
NEW JERSEY
G E OR G IA L U CAS Monroeville, NJ DORDT COLLEGE MAJOR: AGRICULTURE CAREER PATH: FARM MANAGER/OWNER
Georgia found her passion for crop and animal diversity through 4-H and Future Farmers of America (FFA), and hopes it will help in her pursuit of a career in agriculture.
K E LLI E VO NT H U N Monmouth Junction, NJ DELAWARE VALLEY UNIVERSITY MAJOR: EQUINE SCIENCE AND MANAGEMENT CAREER PATH: HORSE TRAINER & AGRICULTURAL PHOTOJOURNALIST
Horses and 4-H were Kellie’s passions as she grew up, which has inspired her goal to build an equine business, while capturing the world of agriculture through photos. NEW YORK
A B I GAI L AUWAE RT E R Blue Point, NY CORNELL UNIVERSITY MAJOR: DESIGN AND ENVIRONMENTAL ANALYSIS CAREER PATH: GREENHOUSE OWNER
Abigail hopes to be the fourth generation of her family’s greenhouse and nursery operation, bringing new designs and efficient technology to their retail operation. 18
After graduation, Serene hopes to become a food scientist to create new varieties of food that are healthier for both people and the environment.
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As a fourth-generation vegetable grower, Andrew is eager to return home after completing his education to continue and expand his family’s operation.
AS H L E Y LYM AN Black Creek, NY MORRISVILLE STATE COLLEGE MAJOR: AGRICULTURAL SCIENCE CAREER PATH: VETERINARIAN
Ashley always knew she wanted to be a veterinarian. She hopes her degree and experience growing up with dairy cattle will provide her the tools needed for a successful career.
M I KAYL A M AC N E I L L Cortland, NY VIRGINIA TECH MAJOR: AG LEADERSHIP & COMMUNITY EDUCATION CAREER PATH: HIGH SCHOOL AG TEACHER
Mikayla’s involvement with 4-H and other agricultural associations has inspired her to pursue a career in ag education to teach the next generation of agricultural leaders and farmers.
J AC O B M AS LYN Farmington, NY MORRISVILLE STATE COLLEGE MAJOR: AGRICULTURAL SCIENCE CAREER PATH: DAIRY FARM MANAGER/OWNER
Jacob learned from an early age that he liked working with animals. He looks forward to a career in agriculture where he can use his skills and experience to be a farm manager.
A LI S ON PAR R OT T
K AT I E S O N D E R I C K E R
Granville, NY
Attica, NY
CORNELL UNIVERSITY MAJOR: AGRICULTURAL SCIENCE CAREER PATH: HIGH SCHOOL AGRICULTURAL TEACHER
PENNSYLVANIA STATE UNIVERSITY MAJOR: ANIMAL SCIENCE CAREER PATH: DAIRY GENETICS OR NUTRITION RESEARCH
Alison hopes to combine her two passions, agriculture and education, as she pursues a career as an agricultural educator.
DA N I E L L E PAS CAR E L L A
Katie’s undergraduate involvement with animal science research has inspired her to pursue a career in research with a goal of improving the efficiency of dairy cattle robotic milking systems.
ADAM S TANTO N
Cattaraugus, NY
Schoharie, NY
SUNY FREDONIA MAJOR: PHILOSOPHY CAREER PATH: AGRICULTURAL LAWYER
With her knowledge of agriculture, the environment and policy, Danielle hopes to become a lawyer who can assist farmers with their business’ legal matters.
KAE LYN PE N N I N G S
SUNY COBLESKILL MAJOR: AG ENGINEERING POWER & MACHINERY CAREER PATH: AGRICULTURAL MECHANICS
With his hands-on experience and responsibility growing up on his family’s dairy farm, Adam plans to pursue a career as an agricultural mechanic.
TYL E R WE AV E R
Warwick, NY
Wyoming, NY
SUNY COBLESKILL MAJOR: ANIMAL SCIENCE CAREER PATH: FARM MANAGER/OWNER
Kaelyn’s interest in farming and education has inspired her future plans to run a livestock and produce farm and incorporate children’s education opportunities.
DA N I E L R I PL EY
UNIVERSITY OF NORTHWESTERN OHIO MAJOR: AGRICULTURAL DIESEL CAREER PATH: AGRICULTURAL DIESEL TECHNICIAN
Recognizing the growing use of specialized, technical equipment on today’s farms, Tyler hopes to build his skills in college to pursue a career as an agricultural mechanic.
KAYL A W I N D E C K E R
Moravia, NY
Frankfort, NY
MORRISVILLE STATE COLLEGE MAJOR: ANIMAL SCIENCE CAREER PATH: FARM MANAGER/OWNER & DAIRY NUTRITIONIST
Daniel’s love for agriculture began when his father gave him his first show calf. After graduation, he hopes to return to his first farm as both an owner and a dairy nutritionist.
CORNELL UNIVERSITY MAJOR: ANIMAL SCIENCE CAREER PATH: DAIRY NUTRITIONIST
Through her studies on the impact of feed costs on a dairy farm’s bottom line, Kayla hopes to help farmers be successful as she pursues a career as a dairy nutritionist.
KAYL A WO R M UTH
ALLI S O N S K I N N E R Clymer, NY
Jordan, NY
PENN STATE BEHREND MAJOR: FINANCE CAREER PATH: AGRICULTURAL LOAN OFFICER
CORNELL UNIVERSITY MAJOR: ANIMAL SCIENCE CAREER PATH: FARM MANAGER/OWNER
With a goal of aiding America’s future farms, Allison plans to use her knowledge of finance and experience with agriculture to become an agricultural loan officer.
Kayla appreciates the impact dairy farming has had on her life, which has inspired her to pursue a career in the dairy industry with the goal of owning her own dairy business.
FARM CREDIT EAST “CHAIR SCHOLARSHIP” RECIPIENT This year, Farm Credit East offered an additional $1,500 scholarship upon a second tier, in-depth review of the applications. The Chair Scholarship is in addition to the $1,500 Farm Credit East scholarship.
E M I LY O O M S Valatie, NY CORNELL UNIVERSITY MAJOR: ANIMAL SCIENCE CAREER PATH: DAIRY FARM MANAGER/OWNER
Growing up on her family’s dairy farm allowed Emily to realize her passion for agriculture. She plans a career as a farm management specialist before returning to her family’s farm.
TO BE A CANDIDATE FOR A 2018 SCHOLARSHIP, CONTACT A FARM CREDIT EAST BRANCH OFFICE OR VISIT FARMCREDITEAST.COM A P P L I C AT I O N S W I L L B E AVA I L A B L E I N J A N U A R Y 2 018 SUMMER 2017
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FINANCIAL PARTNER is for the customers, employees and friends of Farm Credit East. Farm Credit East is a farmer-owned lending cooperative serving the farm, commercial fishing and forest products businesses in Maine, New Hampshire, Massachusetts, Connecticut, Rhode Island, New York and New Jersey. Part of the national Farm Credit System, Farm Credit East is a full-service lender dedicated to the growth and prosperity of agriculture.
Farm Credit East 240 South Road Enfield, CT 06082-4451 Address Service Requested
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HOW TO REACH US: Whether you want to praise us, complain, ask our advice or just let us know what’s on your mind, we’d like to hear from you. WRITE: K ristie Schmitt, Editor, Farm Credit East, 240 South Road, Enfield, CT 06082-4451 CALL: 860.741.4380 E-MAIL: kristie.schmitt@farmcrediteast.com Copyright© 2017 by Farm Credit East, ACA. All rights reserved. Farm Credit East is an affirmative action, equal opportunity employer. FINANCIAL PARTNER is printed on recycled paper.
2018 Agricultural Views Calendar Photo Contest Help us fill Farm Credit East’s Agricultural Views 2018 Calendar with fresh imagery that illustrates the best of Northeast farming, horticulture, forestry and commercial fishing. We also look for creative photos that celebrate country life in New England, New York or New Jersey. Your photo entry may appear in Farm Credit East’s Agricultural Views 2018 Calendar and also earn you a $100 cash prize! • 14 photos will be selected for a $100 cash prize each. IN SP IR AT IO N? NE ED CR EATI VE
FA R MC R E DI T E A S T.C
VI SI T
OM/CALENDAR
• Submission deadline: July 31, 2017. • Winners will be contacted by: October 16, 2017
UPLOAD YOUR BEST SHOTS TO OUR WEBSITE BY JULY 31, 2017 FOR YOUR CHANCE TO WIN A $100 CASH PRIZE 20
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