Spring 2018 Financial Partner

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FarmCreditEast.com

GENERATIONAL TR ANSFER MEETING THE CHALLENGES OF GENERATIONAL TRANSFER

ALSO IN THIS ISSUE:

2018 Director Candidates p.20

INSIDE SPRING 2018

2 | News & Views

13 | Patronage

17 | Public Policy Update

3 | CEO Column

14 | Economic Outlook

18 | Interview: Jim Putnam

4 | Cover Story

16 | Customer Survey Results

20 | Director Candidates

N E & W V IE S WS Farm Credit East Scholarships Be sure to check out Farm Credit East’s 2018 Insights and Perspectives report. This year’s edition provides analysis and perspectives on agriculture, commercial fishing and the forest products industries, as well as insight on topics impacting these industries, such as tax reform and crop insurance, from Farm Credit East leadership and industry experts nationwide.

Topics Include: • Command and Control – Has your Business Kept Up? • Northeast farm economy • What the new tax law means for Northeast agriculture

Farm Credit East is committed to supporting programs and initiatives that strengthen Northeast agriculture, commercial fishing and forest products. As such, we provide various scholarships to support individuals’ efforts to further their agricultural development. Applicants for any of these scholarships must have permanent address within Farm Credit East’s territory.

For Students Farm Credit East is currently accepting applications to its annual scholarship, which awards qualified students with $1,500 scholarships to put toward their full-time, post high school education (this includes colleges and technical schools) in the upcoming fall semester. We look for students committed to pursuing a career in agriculture, commercial fishing or the forest products industry.

Apply: FarmCreditEast.com/Scholarship Deadline: Wednesday, April 4, 2018

For Ag Educators These scholarships are for teachers attending institutes offered by the Curriculum for Agricultural Science Education (CASE). A scholarship covers up to 50 percent of the cost of the CASE institute, not to exceed $1,000. Educators must teach in a school district within Farm Credit East’s territory and must currently or plan to teach agricultural or natural resources courses.

Apply: FarmCreditEast.com/AgEducator Deadline: Monday, April 2, 2018

For FFA Students These scholarships are for students involved in the National FFA Organization (Future Farmers of America) to support their Supervised Agricultural Experience (SAE) or educational opportunities within the agriculture, commercial fishing or forest products industries.

Qualified students have a strong SAE and understand their project’s impact on their future career in an agriculturally related field. This scholarship is awarded semi-annually, with four $500 scholarships being awarded during each cycle.

• 2018 outlooks for the dairy, grain and oilseed, apple, vegetable, greenhouse and nursery, forestry, and fishing industries

Apply: FarmCreditEast.com/FFA Deadline: Saturday, June 30, 2018

• A look into consumer buying habits

The Farm Credit East Photo Calendar Contest is open.

• Update on the FSMA produce safety rule To view this year’s report, visit FarmCreditEast.com/Insights

Calling All Talented Photographers!

We’ve received many creative images representing Northeast agriculture and country life from customers, employees and friends over the years. As the weather warms, we hope you’ll get outside to capture images representing modern agriculture, commercial fishing and forest products. Upload your creative shots for our 2019 calendar for a chance to win $100!

We look for photos representing Northeast agriculture during every season, so don’t forget to send in the snowy scenes you captured this winter too! We encourage creative photos from all industries, from commercial fishing to dairy, the forest products industries to row crops — with all other industries in between.

Ready! Aim! Shoot! Upload photos at FarmCreditEast.com/Calendar Deadline: July 31, 2018

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FINANCIAL PARTNER

CEO’s MESSAGE

THE NEXUS OF EXCELLENCE AND CHANGE Bill Lipinski, CEO, Farm Credit East The success of any business involves a

one of the 1,275 customers who provided

Jim embodies what excellence is all about.

commitment to excellence and a willing-

your input to this survey — thank you!

He has helped build our financial services

ness to adopt changes that make a mean-

If not, hopefully we will catch you next

and lending efforts; he has been a tireless

ingful difference. Just like in the customer

time. While our survey results indicated

advocate for staff training and develop-

businesses we serve, Farm Credit East

high levels of satisfaction, we do this

ment; he has provided economic insights

works to improve each and every year,

survey to identify areas for improvement

and analysis for our benefit and that of our

and to evolve our organization to embrace

as we look to constantly enhance the

customers; he was key to the development

the future.

customer experience. While there are

of our customer service council program;

many things to learn, the survey results

and he has been instrumental in our

strongly suggest that our keys to success

outreach efforts to strengthen Northeast

are making it easy to do business with us,

agriculture and natural resource-based

maintaining staff with a very high level

businesses.

In this edition of Financial Partner, our feature article discusses two Farm Credit East programs that are focused on change and taking the necessary steps to prepare a business for the future. The first is GenerationNext, a program that helps young folks develop the skills and knowledge to take on a greater role in the management

of expertise and keeping our focus on helping you to be successful. These will continue to be our priorities as we plan for the future.

There is little that Jim’s expertise has not touched in Farm Credit East. His knowledge and skills have been a great asset, but it’s his unsurpassed commitment to the

of their businesses. It helps participants

We also know that you want an organiza-

success of Farm Credit East and the cus-

better understand all aspects of the busi-

tion that is financially sound, including a

tomers we serve that will be missed most.

ness, including financial management,

strong patronage program. As highlighted

We are grateful for all of Jim’s contribu-

while focusing on key issues in human

later in this issue, based on strong 2017

tions, and as we look towards the future

resources and employee communications.

financial results, your Board of Directors

of the association, Mike Reynolds, our new

approved a record patronage distribution

chief business officer, along with other

of $60 million paid to eligible customers in

senior management members and the en-

late February. This resulted from a record

tire Farm Credit East team, stand ready to

$160 million in earnings, which allows

build on Jim’s legacy of accomplishments.

Our feature article also addresses the other side of the coin — estate planning. While developing the next generation’s skills is important, there are also actions that the current generation of owners needs to take to ensure the long-term success

us to build capital for the future while sharing our success through patronage.

We look forward to working with you in 2018. Our commitment to your success is

of the business, while also planning for

Also featured in this issue is an interview

what drives this cooperative every day. On

retirement. Estate planning is not without

with Jim Putnam, reflecting on his 43 years

behalf of the Board and staff, thank you

difficult challenges, but making the hard

with Farm Credit. In so many ways, Jim

for the opportunity to support, grow and

decisions now can benefit all involved.

has been my right-hand partner in manag-

transform with your business.

We have also included an article about our “Voice of Customer” survey. If you were

ing Farm Credit East’s success, and at the end of March, he will retire.

SPRING 2018

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FINANCIAL PARTNER

Every business has a life cycle.

At some point the owner will need to relinquish control. Is there a capable successor ready to take the reins? If not, there are decisions to be made to either sell the business or shut it down. Regardless of the outcome, there’s planning involved.

MEETING THE CHALLENGES OF

GENERATIONAL TR A NSFER As business owners and operators build their businesses, they need to constantly be thinking about that next step, because the next step is going to come, whether they’ve planned for it or not.

Yet, this is a topic too often put off. There’s a cost to procrastination — ­ a cost greater than just monetary, and it could put a business’s legacy at risk.

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There are a number of reasons it’s important to plan for the transfer of a business, and to start planning it early. The primary goal of an estate plan is for the continuity of the business — whether it is being passed down to the family’s next generation or continued by a non-family member — but there are a number of pieces that need to fit into place in order for this to happen.

There are also a number of people involved — each with their own goals and objectives.

First, let’s define the “senior generation.” The senior generation is not necessarily nearing retirement — it’s just the person that one day plans to retire. This person may only be in their 30’s or 40’s, but as a younger generation begins to come into the operation, they should start to think about the path for the business. It’s best to bring the junior generation into discussions about the business’s future as early as possible. This will help them prepare for their path to succession.

One of the end goals of the senior generation, whether they are 35 or 70, is often for the legacy they built to continue. This means there needs to be well-trained successors that understand their path to succession and are building equity to make the transition work. This doesn’t happen in just a few short years.

Additionally, when it does come time for the senior generation

The junior generation is often eager to take over ownership.

to retire, they’re probably looking forward to a more stressfree retirement. They want to be able to live comfortably and

ASKING THE TOUGH QUESTIONS

IS THE OLDER GENERATION READY TO LET GO?

After defining the players involved in a transition plan and their goals, and recognizing the potential challenges, what is needed to build an effective estate plan to successfully transfer the business? Here are a few things to consider.

The junior generation needs to develop their management skills and be granted the authority to make decisions and begin to manage the business. At the same time, the senior generation has a tremendous amount of knowledge that can benefit the business. Some of the more successful transfers occur when the next generation has the opportunity to run with their ideas, but the senior generation is close by to consult and guide the younger generation, particularly in the first few years.

ARE THE GOALS OF EACH GENERATION ALIGNED? Aligning the personal and professional goals of the incoming and exiting generations can be a challenge.

Often the exiting generation wants to avoid risk — pull cash out of the business and slow down. Meanwhile, the incoming generation may want to grow and expand the business by investing in new equipment and facilities.

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FINANCIAL PARTNER

DOES THE BUSINESS NEED TO CHANGE TO SURVIVE? The existing business model may not be able to survive a generational transfer. This can be hard to deal with, but the earlier it is recognized, the better. For example,

have the peace of mind that they have adequate assets for their retirement. If the assets they plan to use in retirement are coming directly or indirectly from the business, then the business needs to be profitable enough to allow for this.

So what about the upcoming generation? This generation may not even be 20 years old, but if they’ve expressed interest in returning to the farm, it’s time to start thinking about the next step.

The junior generation is often eager to take over ownership.

They have big ideas and they want to own something, but they need to take a step back and realize that running the business is more than just ownership. It also takes skilled management, which may require professional improvement. Start by answering the following questions: How are their leadership skills? How do they work with employees? Are they crosstrained in the various functions of the business?

While this generation is typically fully skilled in the hands-on, day-to-day production tasks of the operation, they may lack other business knowledge, such as marketing, finance, human resources or other decision-making skills required to manage the business. The need for these crucial skills may not always be evident when coming into management, but as ag businesses are getting larger, every business has these kinds of functions, whether they are labeled this way or not.

a marginally profitable farm may generate enough income for a couple nearing retirement, but not enough for a young family that plans to send children to college.

Another situation may be a farm that is generating cash income, but essentially living off of depreciation with a lot of deferred maintenance and investment needs. It may be a business model that worked in the past, but needs to change to meet the demands of today’s marketplace. Alternative business models could consider access to new markets, the addition of products or changes to business operations.

abilities to run a successful farm. Bringing the next generation into the financial management of the farm early, well before any transition, can be a positive step in ensuring success down the road.

ARE THERE LEGAL OR TAX CONSIDERATIONS THAT NEED TO BE ADDRESSED? Transitioning a farm often involves legal and tax implications. It is important to ensure that the transition occurs smoothly, that the goals and interests of the exiting generation are protected, and that tax implications are managed.

IS THE JUNIOR GENERATION PREPARED FOR MANAGEMENT? Today’s tight margins require strong business management skills. Incoming managers need to have both production skills and financial management SPRING 2018

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Capital is also an important consideration for the junior generation.

EQUAL VERSUS EQUITABLE

They need to not only be able to afford the farm, but potentially

The discussion of how to treat non-farm heirs in an equitable way

also buy out non-farm heirs. What kind of capital are they bringing

can be difficult. It’s important to remember that what is fair is

to the table, whether it be savings, equity or assets?

not always equal. In other words, while it may appear on paper as though a disproportionate level of value is going to the farm

OVERCOMING THE HURDLES

successors, this value is tied up in assets that are not liquid, and

There are a number of hurdles that can impact an effective estate plan. Once they are recognized, the operation can effectively move towards a path for succession.

the successor is also taking on a much greater deal of risk and potential liability.

LACK OF COMMUNICATION AND MUTUAL RESPECT Progress is delayed when senior and junior generations don’t

TIME An effective, well-planned, well-thought-out transition may take five to 10 years or more. Succession planning should not be correlated with mortality. The earlier an estate plan begins, the more effective it will be.

see eye-to-eye. Both generations need to practice effective communication, keep an open mind and be willing to change, if necessary.

AFFORDABILITY CONCERNS Profitability is what keeps the business thriving and provides the

MANAGEMENT TRANSFER The senior generation needs to be willing to give up control and grant the junior generation greater responsibility over time. The transfer of assets is an important step in the process. If the senior

cash that different generations need to make the estate plan work.

Without profitability, business goals are difficult to achieve and sustain.

generation is not willing to give up management authority, then an estate plan never really gets off the ground.

PROACTIVE TRANSITION TIMELINE SENIOR MEMBERS

30’s Define and communicate a pathway to succession.

This should include prerequisites, such as education and off-farm employment.

TEEN’s JUNIOR MEMBERS 8

FINANCIAL PARTNER

SENIOR MEMBERS

40’s Junior members should have entry level roles with accountability.

Consider leadership development and/or management training programs for the junior generation.

Senior members should define retirement. Set a timeline and outline retirement needs.

20’s JUNIOR MEMBERS

SENIOR MEMBERS

50’s Junior members move into middle management with initial business ownership transfer. If the junior generation has not yet participated in any type of management training, now is the time to do it.

30’s JUNIOR MEMBERS

SENIOR MEMBERS

60’s Junior members enter into senior management role with initial real estate ownership transfer. Senior members are moving into retirement. At this point there may be a new “junior generation” coming into the business, bringing the process back to step one.

LONG-TERM HORIZON It’s important to remember that an estate plan is not a once and done process, and often multiple generations are concurrently developing their skills in different stages of the process. Noted in the final phase, as the junior generation takes the reins, it’s possible the next generation is already coming into the business, so it’s important to be thinking about their own succession plan.

40’s JUNIOR MEMBERS SPRING 2018

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EFFECTIVE COMMUNICATION

insurance, legal documents and personal feelings. The external

Communication is the largest struggle in a business transition, and the most difficult piece to truly master. Two of the keys to overcoming this hurdle are respect and trust.

members of the team bring unbiased expertise to the discussion.

At Farm Credit East, our consultants are skilled at asking the hard questions, and are able to speak objectively with each member involved in the transition. Our focus is the same as yours —

The senior generation needs to have trust in the junior generation.

This means they need to afford them the possibility of making mistakes. The younger generation needs to respect that the older generation has put a lot of time and work into building the business and they have a lot of knowledge.

continuity of the business.

“When I first sit down with a business, I explain that I am there to work for the business and to foster the business through the process,” said Amie Thomas, Farm Credit East business consultant.

“I am not working for any particular individual sitting at the table, but instead I am working for the

Even if things get a little intense

business as a whole and trying to

throughout the process, the goal is

look out for its best interest.”

to work through it, so that in the end the family can still sit down

Farm Credit East consultants

to dinner together. One way to

work with the senior generation

accomplish this is self-awareness.

to ensure they have an adequate

Everyone involved needs to

assessment of the income or

understand how they communicate, and what might set them off. It’s a good idea to lay some ground rules for how and when to communicate on various topics, or schedule regular meetings.

It’s also important to be aware of other people’s needs. We’re all guilty of being self-focused, but

Generational transfer can be, and should be, a process that brings families closer — that’s my goal.

throughout this process the parties

Externally, the team may include a business consultant, loan officer, accounting specialist and attorney. There are a number of factors to consider in a business transition, including finances,

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sit down with the whole team to define the roles and responsibilities of each member involved to ensure everyone has a stake in the future of the

provide options that will hopefully work for the family,” said Chris Anderson, Farm Credit

A business transition is a team

future of the business.

as GenerationNext. And we

“I facilitate, encourage and

WORKING TOGETHER TO DEFINE ANSWERS

to express their expectations and understand the plan for the

skills through programs such

process.

thinking and what their needs are.

non-farm-heirs. Each member of this team should have opportunity

develop their management

of their role in the transition

coworkers, managers or owners are

which may include family successors, non-family successors and

We help the junior generation

business and an understanding

need to be mindful of what other

effort. There’s the internal team,

assets they’ll need in retirement.

East business consultant. “Often different generations want the same thing, but because of the lack of effective communication there can be a lot of unnecessary stress and misunderstanding. I help to bridge those communication gaps.

Generational transfer can be, and should be, a process that brings families closer — that’s my goal.”

KEY OBJECTIVES FOR A SUCCESSFUL GENERATIONAL TRANSFER

JUNIOR GENERATION

FINANCIAL STABILITY/PROFITABILITY First and foremost, the junior generation needs to be able to afford the farm. They also may need to buy out non-farm heirs, while balancing the senior generation’s need for cash in retirement with their need for cash to grow the business and pay their bills.

ASSUME RESPONSIBILITY FOR DECISION MAKING While the junior generation most likely has a wealth of production knowledge, they also need strong financial and leadership skills to assume a key management position.

RESPECT THE LEGACY The junior generation will most likely have fresh ideas to build the business’s profitability, but it’s important to respect the senior generation’s legacy that brought the business to this point.

It’s a balancing act of continuing the legacy while moving forward.

COMMON GOAL SENIOR GENERATION

CONTINUE THE BUSINESS

RETIRE COMFORTABLY The senior generation doesn’t want to worry about how to pay their bills in retirement.

They deserve to retire in a way that is a reward for all of their years of hard work and diligence.

RESPONSIBLY TRANSITION OWNERSHIP The senior generation wants to feel secure that they are turning over the reins of the business they worked so hard to build into willing and capable hands.

PEACE OF MIND The senior generation wants the security that their assets are protected if long-term care is needed.

BE FAIR In a transition there are often multiple people involved, including non-farm heirs.

The senior generation wants to be sure all people involved receive a fair share of their legacy

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Team building / Problem solving / Effective communication / Business plans Using financial records to manage business goals, and more.

This past winter, Farm Credit East hosted a record number of GenerationNext sessions. Eight sessions were held across the Northeast — from Presque Isle, Maine, south to Flemington, NJ and all the way west in Java Center, NY. More than 100 next generation operators were in attendance.

GenerationNext helps participants identify areas for personal growth and development; acquire tools to help manage an agricultural business; and provides opportunity for producers to network with other young industry leaders.

While GenerationNext is optimal for producers, ages 20 to 35, who will be the next generation operators of a business, there is no age limit. We’ve had producers in their 40s, and even their 50s, who come away with management tips and tricks — whether it be how to get the most out of a financial report or how to deal with a particular human resource issue.

GenerationNext sessions typically begin in the fall. In addition to group sessions with producers from different operations, Farm Credit East consultants offer the same management training on individual farms.

Learn More: FarmCreditEast.com/GenerationNext

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‘‘

GenerationNext was a good experience because it broadened my skills in both financial and employee management, and helped me realize the effect my individual management style has on the personnel I work with. It also helped me to understand what it takes to not only manage the day-to-day, but lead into the future.

The class was also beneficial to network with other local progressive farm managers. Having been out of the class for a few years now, I still communicate with others that went through the class with me.

We were recently preparing for annual employee evaluations and wanted to show employees the value they receive in non-cash benefits. I pulled up a template from GenerationNext that shows the tax benefit and we used that form with every employee we talked to.

Matt Worden, Wil-O-Crest Farms,

Clifton Springs, N.Y.

‘‘

Farm Credit East GenerationNext session in Java Center, NY.

“Perks of

“Being able to consistently pay a healthy patronage dividend to our customer-owners reflects the strength of our cooperative. The board of directors is committed to maintaining a financially strong cooperative that combines in-depth expertise with strong customer-value and a long-term commitment to the industries we serve.”

— BOARD CHAIR MATT BEATON, OF WAREHAM, MASS.

Cooperative Ownership

$ 60 MILLION IN PATRONAGE DIVIDENDS • 22 YEARS AND COUNTING Farm Credit East is a financial cooperative, owned by the customers we serve and governed by a customerelected Board of Directors. Our customer-owners share in the financial cooperative’s success through patronage dividends. This cooperative model enables Farm Credit East to offer competitive interest rates up front, and then through continued success, return a share of net earnings to eligible owners via patronage dividends. On average over the past three years, eligible customers received 25 percent of the interest earned during that year.

PAT RONAGE PAID BY Y E AR

$60 $50 $40 $30 $20

This past February, we were pleased to distribute a record $60 million in cash patronage dividends to more

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and operators throughout the seven states we serve.

Since the patronage program was first adopted, eligible customer-owners of Farm Credit East (and predecessor cooperatives) have earned $713 million in dividends.

This is the 22nd consecutive annual patronage payment.

“Paying patronage dividends, while also building capital levels, is a key part of the value-proposition of the Farm Credit East cooperative. By focusing on strong earnings and sound lending practices, we continue to grow as the leading financial partner to the Northeast agriculture, commercial fishing and the forest products industry and do our part to maintain investor confidence.”

— BILL LIPINSKI, FARM CREDIT EAST CEO SPRING 2018

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Secretary Perdue Returns to the Northeast Following his summer visit to New England, Secretary of Agriculture Sonny Perdue visited New York’s Saratoga and Rensselaer counties in November.

The Secretary toured WestWind Ag in Rensselaer County and King Brothers Dairy in Saratoga County, where he held listening sessions to hear producers’ priorities for the 2018 Farm Bill. The Secretary also heard producers’ concerns about the availability of agricultural labor and the need to maintain open and fair trade for agricultural products.

Representatives Faso (NY-19), a member of the House Agriculture Committee, Stefanik (NY-21) and Tenney (NY-22)

AN

IMPROVING

U.S. ECONOMY

BY CHRIS LAUGHTON, FARM CREDIT EAST DIRECTOR OF KNOWLEDGE EXCHANGE

The United States economy looks robust in 2018. Growth in the U.S. gross domestic product (GDP) averaged 2.3 percent for 2017, according to the Department of Commerce’s most recent estimates. This represents a significant acceleration of economic growth from 1.5 percent in 2016. GDP growth is projected to continue to strengthen through 2018.

Three generations of Ooms: Eric Ooms, his son Arend and his father Adrian, of A. Ooms & Sons Dairy in Valatie, NY, with Secretary Perdue at King Brothers Dairy Farm in Northumberland, NY.

participated in the tours. Laurie Griffen and LouAnne King, Farm Credit East board members, also attended to share their views with the Secretary.

In January, Secretary Perdue released USDA’s outline of the principles the agency wants to see in the 2018 Farm Bill.

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America’s expanding economy is having a number of impacts. One of the more significant is the tightening of the labor market. The official unemployment rate fell from 4.8 percent in January of 2017, to 4.1 percent in December. Job growth averaged a healthy 171,000 per month for 2017. Many employers report having to look more aggressively for workers as the nation approaches full employment. Over the year, average hourly earnings rose by 2.5 percent.

The improved economy was also reflected in consumer spending and sentiment. The Consumer Confidence Index was at 123.1 in December, only slightly below November’s 17-year high of 128.6. This compares to a value of 113.7 at the end of 2016. That high level of consumer confidence has translated into increased consumer spending, a key component of the overall economy. Overall consumer spending increased by 5.3 percent in December, year-over-year.

Inflation has picked up somewhat, as might

among our trading partners. Trade within

be expected with a more robust economy.

the NAFTA region alone accounts for more

Consumer price inflation, including food and

than a trillion dollars annually. While a

energy, increased to 2.1 percent for 2017,

breakdown of the agreement would certainly

slightly above the Federal Reserve’s target

not eliminate all North American trade, it

of two percent. In response to this and a

could have significant negative effects on

tightening job market, the Fed made three

U.S. agricultural exports.

interest rate moves over the course of 2017,

Globally, economic growth is expected to

bringing the Federal Funds rate to 1.5 per-

continue its momentum going into 2018. The

cent, resulting in a prime rate of 4.5 percent.

overall world economy is projected to grow

Projections indicate that the Fed could make

by 3.0 percent or more in 2018. Advanced

two or three more quarter-point rate moves

economies are expected to show increased

in 2018. While higher interest rates typically

growth at 2.1 percent, while emerging

temper economic growth, the U.S. economy

markets are cooling off, and expected

is still expected to post very good results

to grow by 3.8 percent, lower than in

through the next year.

the past. China, long a leader in global

The housing market remains relatively

economic growth, is projected to see

strong. While still well below peak levels,

growth slow from 4.2 percent in 2017

housing starts averaged 1.2 million for 2017.

to 3.9 percent in 2018. Better-than-

The S&P/Case-Shiller 20-City Home Price

expected growth in Japan and

Index rose by 6.6 percent last year.

the Eurozone, coupled with

In welcome news for exporters, the U.S.

continued accommodative

dollar declined in value somewhat against

monetary policy contributes to

foreign currencies in 2017. The dollar had

a strong global economy.

CHALLENGING YEAR AHEAD FOR MANY U.S. AGRICULTURAL SECTORS

a trade-weighted index value of 88.9 in

The 2018 outlook indicates a

December compared to 95.4 one year earlier,

very difficult year in American

representing a decline of just under seven percent. While this should help support

agriculture. The dairy industry will

agricultural exports, improving economic

have its fourth year of weaker prices

conditions in the U.S. relative to other major

following the peak of 2014. Slowing

trading partners will likely limit the dollar’s drop in value.

growth in the developing world, along

The risk of recession seems relatively small

with rising agricultural productivity,

at this point. While the current economic expansion, at 102 months, is well beyond

has contributed to a global glut of

the average length of time between reces-

commodities. While trends of population

sions (58 months), we’re not seeing the typical warnings that usually precede recessions. The stock market has experienced considerable turmoil in recent weeks, however, leading economic indicators look

growth and a growing middle class in the developing world support a long-term bullish outlook for U.S. agriculture, in the

remarkably good at this point. The Confer-

near term, many commodities markets are

ence Board’s Leading Economic Index is at

expected to remain soft. USDA long-term

a healthy level, as are other indicators, such as building permits, manufacturing data and

projections indicate reduced farm income

inventory levels.

through at least the next crop year before

There is some concern over the trade policies of the current U.S. administration.

American agriculture has greatly benefitted

global food and biofuel demand equalizes with supply, and farm incomes begin to slowly rise.

from international trade agreements, and the current environment creates uncertainty

For a deeper dive into the various sectors of Northeast agriculture, visit FarmCreditEast.com/Snapshots

VOICE

OF THE

CUSTOMER

Fa r m C r e d i t E a s t 2 0 17 C u s t o m e r S u r v e y Thank you! to the more than 1,200 customers that shared their voice in Farm Credit East’s 2017 customer survey that took place last fall. Your responses provided valuable insight into the customer view of Farm Credit East, helping us to identify strengths and opportunities to improve on our delivery of products and services.

There’s lots of data for us to cut and slice, but here were some of the over-arching themes.

PARTICIPANT PROFILE • Respondents represented a diverse commodity mix and age representation. Young farmers (35 and under) comprised 10% of the survey.

• Not surprisingly, nearly all respondents use Farm Credit East loan products, but a high number also use an additional service, with tax preparation and planning being the most used services.

• 40% of the respondents indicated interest in learning more about other financial services

KEY TAKE-AWAYS • 94% of respondents are very satisfied or

94%

somewhat satisfied with Farm Credit East.

• Nearly 100% of respondents feel treated with respect. We are privileged to work with you.

KEYS DRIVERS OF OVERALL SATISFACTION • The strong relationships we’ve fostered with our customers, and the fact that we work to make sure everyone is on the same page.

• Our knowledge and assistance in navigating the loan process. We make it easy for you to do business with us.

• 90% of respondents indicated that Farm Credit East provides a better value than other providers of similar services.

offered by Farm Credit East.

40%

• 96% of respondents are likely to obtain credit or use an additional service from Farm Credit East in the future.

• We understand our customers businesses and offer the financial services and tools to assist their businesses.

And above all, thank you for the opportunity to serve you . This survey was called the Voice of the Customer because the cooperative is only successful when our customers are successful. So it’s important for us to understand your needs and consistently evaluate our service and delivery to ensure you remain a loyal customer. We appreciate your willingness to share your thoughts and look forward to delivering an enhanced experience based on your feedback.

16

FINANCIAL PARTNER

WASHINGTON Update

Tom Cosgrove Senior Vice President for Public Affairs

2018 Shaping Up to be Busy Year Despite the major tax reform law

provision has caused concern among

System’s national trade association is

passed in the waning days of 2017 and

private firms who believe it gives an

leading a coalition called #RebuildRural

a bipartisan budget deal passed in early

advantage to cooperative members.

that is advocating to ensure that rural

February, Congress still has a lot to do

There is also concern about how certain

communities’ needs are addressed in

in 2018.

sales of livestock will be treated. Visit

any infrastructure package.

In many ways, Congress’ to-do list has been shaped by the recently passed tax

FarmCreditEast.com for a summary of the major tax reform provisions.

FARM BILL The passage of the budget agreement has major implications for

reform bill and budget deal. At press

DACA/IMMIGRATION REFORM One of the

the Farm Bill. The budget deal included

time, these are some of the top issues

issues not addressed in the budget deal

provisions to make changes to the

affecting Farm Credit East members

was Deferred Action on Childhood

cotton and dairy program. By inclusion

in 2018.

Arrivals (DACA). This relates to undocu-

in the budget deal, Congressional

mented immigrants who were brought

Agriculture Committees won’t have to

to this country as children, sometimes

find offsetting cuts for these changes

referred to as “Dreamers”.

in the Farm Bill.

funds still need to be appropriated to

Many Democrats had wanted to tie

Farm Credit East’s Knowledge Exchange

fund the government beyond March 23.

resolution of the DACA issue to a budget

will analyze what the changes to the

The budget deal should make that

deal and continued government fund-

dairy Margin Protection Program mean

easier to accomplish, but there are no

ing. In the end, while there is agree-

for producers. In the meantime, the

guarantees.

ment that the issue will be debated,

changes will make the Agriculture Com-

it’s unclear how DACA gets resolved.

mittees’ jobs easier as they take some

GOVERNMENT FUNDING The bipartisan budget deal sets the framework for funding the government into 2019, however,

TAX REFORM Although tax reform has seemingly been checked off the list,

For the time being, the DACA issue and

there’s a provision called Section 199A

other efforts for broader immigration

that may need to be revisited.

reform seem to have put the creation

Included at the request of the National Council of Farmer Cooperatives, this

of an agricultural guestworker program on the backburner.

section provides a tax deduction based

INFRASTRUCTURE The Administration has

on the amount of income received

unveiled its framework for an infrastruc-

from a cooperative. Intended to offset

ture bill and it is possible Congress will

a deduction that was eliminated, this

consider one this year. The Farm Credit

budgetary pressure off the Farm Bill, however, it is still likely to be a contentious debate. House Agriculture Committee Chairman Mike Conaway hopes to start moving the Farm Bill in March.

With all this going on, it promises to be a busy year in 2018, and Farm Credit East will continue to closely monitor these issues.

SPRING 2018

17

At the end of March, chief business officer Jim Putnam will retire from Farm Credit East.

We often joke around our office halls that employees with long tenures bleed green.

Jim truly epitomizes this. Not only has he spent his entire 43 year career with Farm Credit, but he’s a Farm Credit history buff.

You can catch him in his spare time reading about the formation of Farm Credit and

Jim Putnam, deep into research, circa 1977

perusing through Farm Credit archives. He even started a Farm Credit Museum in the Enfield, Conn., office. But as much as he loves the System’s fascinating 100+ year history, he’s also always been a forwardlooking leader for Farm Credit.

He was integral in the early development of many of the financial services Farm Credit East offers to assist customer businesses today.

In fact, on his first day of work, he was assigned to write a feasibility study required to offer consulting services. And, in the final days of his career, he continues to build this program, as he played an important role in developing several new additions to our consulting services for 2018.

He was involved in the development of the Northeast Dairy Farm Summary, starting with the very first report in 1977. Farm Credit East has continued to release this report annually ever since and it has become a highly regarded analysis of the Northeast

Bids Farewell to a Great Leader

BUT NOT WITHOUT TAPPING HIS INTELLECT ONE LAST TIME A conversation with Jim Putnam, Farm Credit East chief business officer

His early years My family began farming floor-raised hens for eggs in Southwick, Mass., in 1956 (this was the prevailing technology before cages took over in the 1960s).

Through the ’60s, my family began a retail stand supplying homegrown veg-

dairy industry. Jim was also involved in four

etables and homemade value-added foods that my mother produced, including

mergers resulting in Farm Credit East as we

chicken pies, apple and other fruit pies, breads, and cider donuts. By the time

know it today.

my parents retired in the early ’90s, my mother’s value-added products had completely outpaced my Dad’s vegetables in both gross and net dollars. [So

Jim’s wealth of knowledge and innovative

you can see where Jim gets his progressive mindset from!]

thinking will certainly be missed by Farm

The business is still operated today by good family friends Jeff & Lenita Bober.

Credit East. As he winds down his career,

My parents were members of the Western Mass Production Credit Association,

we’d be remiss not to ask him to reflect on his tenure and tap into his expertise one last time.

18

Farm Credit East

FINANCIAL PARTNER

which later became Southern New England and is today Farm Credit East … so my Farm Credit roots go way back!

Farm Credit Career Journey I began my career with the Farm Credit Banks of Springfield as a research analyst in June 1975. In this role I developed feasibility and regulatory approval for new financial services that were enabled by the Farm Credit Act of 1971, including farm business consulting, tax service and forest products lending. I was later promoted to director of research, focusing more on industry analysis.

In 1995, my career took a wonderful 90 degree turn as I joined the First Pioneer management team as senior vice president for financial services and marketing.

In 2015, another marvelous opportunity presented itself, and I became chief business officer, leading retail credit and services delivery through our 20 branch office teams.

The ’80s — a decade to never be forgotten The Farm Credit crisis of the mid-1980s was a wakeup call for the Farm Credit System. For nearly half a century the System and U.S. agriculture had operated in relative stability, so the Farm Debt Crisis certainly burst this bubble of complacency. While this crisis was primarily in the Midwest, then as now, the Farm Credit System is jointly obligated on the bonds and notes that we sell to investors. That meant the whole System was locked in a fight for survival as a farmer-owned cooperative.

Thankfully, the Northeast fared better than our counterparts elsewhere due to changes made a decade earlier to reinvent our credit culture. We had thoroughly refocused our lending process, starting with a complete modernization of credit analysis tools. We also rewrote credit policies and procedures, and all employees went through intense training. This enabled Northeast Farm Credit associations to survive the major credit challenges that hit in the ’80s. But, all in all, the challenges of the ’80s gave the Farm Credit System a new opportunity to learn from its mistakes, rebuild and modernize for the future.

The Farm Credit Difference Farm Credit has made a major difference for Northeast agriculture, commercial fishing and forest products businesses in so many ways. “There in good times and bad” is one of my favorite Farm Credit slogans. I was never more proud to be part of Farm Credit East than during the 2008 financial crisis. Virtually every other commercial lending institution shut down lending at the height of that crisis. Not Farm Credit. We continued to operate business as usual. That was the acid test of everything accomplished from 1988 to 2008. Had we been forced to stop lending in 2008-09, the consequences for Northeast agriculture are

To Northeast Producers Thank you for placing your trust in Farm Credit for your credit and services needs. Without the loyalty of thousands of hardworking northeast producers, I would not have had the opportunity to earn a living in this wonderful career. I am incredibly proud to have spent my adult career working on your behalf. What you accomplish in your business, the lives that you live and the communities that you cultivate are remarkable. To all those I have worked directly over

unthinkable.

the years, thank you for your trust,

Back in the ’60s, Northeast Farm Credit associations understood that being a

friendship and for opening your

great provider of credit was not going to be enough to help farm businesses succeed for the long term. The Farm Credit Act of 1971 opened the door to develop the full suite of services that we offer today. These services have assisted three generations of producers to become more profitable, plan for succession and transfer businesses between generations, and better manage risks. I am proud to have been a part of the services team for 43 years. Today we have a great credit

door to teach me about the essential work you do.

— Jim Putnam

and services team that is prepared to sustain the Farm Credit mission to Northeast agriculture far into the future.

SPRING 2018

19

THE FARM CREDIT EAST BOARD

2018 CAN D I DATE S F O R

T H E

BOAR D OF

D I R E CTO R S On behalf of the nominating committee, Farm Credit East is pleased to present

The Farm Credit East Board sets a clear direction for the cooperative on behalf of all customer-owners. The board works closely with CEO Bill Lipinski to set policy, establish long-term business plans, evaluate business results and provide direction to the management team.

It does not make day-to-day management decisions, including actions on individual loans or matters relating to employees.

THE NOMINATING COMMITTEE The nominating committee is composed of 23 Farm Credit East members and 23 alternates. The association membership elects the nominating committee at the annual stockholders meeting. This committee works hard to identify qualified candidates to ensure that the association attracts a skilled and diverse board. In addition, the committee makes every effort to recommend two qualified candidates for each open seat.

the 2018 candidates for the association’s Board of Directors. There are three open director seats to be elected for four-year terms, and six qualified candidates seeking election to these seats.

You’ll find the information you need to make an informed voting choice for the 2018 Farm Credit East Board of Directors, including: • An annual meeting information statement, which voting members received in the mail

• One seat from the Eastern Region

• One seat from the Central Region

• Information on our website at FarmCreditEast.com/DirectorElections

• One seat from the Western Region

Ballots will be mailed to voting members after the annual meeting on March 26, 2018.

At the close of the current election cycle, the Farm Credit East Board will consist of 16 directors: 13 elected directors, one appointed customer director and two appointed outside directors.

20

ELECTION PROCESS

FINANCIAL PARTNER

• This article’s profile of each candidate

EVERY VOTE COUNTS! This is your opportunity to express your voice in ownership and direction of the cooperative. By voting, you convey your continued commitment to Farm Credit East and thanks to fellow members who are seeking election to the Board. The following overview information is provided by each candidate.

SEAT 1

Nominated from the Eastern Region: Auburn, Bedford, Bridgeton, Dayville, Enfield, Flemington, Middleboro, Presque Isle and Riverhead offices. Two candidates are running for a four-year term.

MICHAEL N. BROOKS Business Experience: Mike is managing partner of Dusty Lane Farms LLC, a diverse 1,400-acre irrigated grain and vegetable farm, growing white potatoes, sweet corn, spinach, peppers, wheat, corn and soybeans. The farm also has 27,000 square feet of heated greenhouse space for vegetable transplant production. Mike is also CFO of Sorbello Farms CSA, LLC, a produce home delivery business.

Leadership/Community Experience: Mike has served on the Bridgeton Customer Service Council for 10

DUSTY LANE FARMS LLC 424 Salem St., Elmer NJ

www.DustyLaneFarms.com

years and is currently a Farm Credit East director, serving as the AgInitiative Committee chair. Mike is also member of the Association of Agricultural Production Executives (AAPEX), which is an organization of graduates of The Executive Program for Agricultural Producers (TEPAP).

Why Farm Credit is Critical to My Business: Farm Credit is one of the last relationship lenders. Having

a relationship with a large lending institution that understands the unpredictable nature of the agricultural industry and is able to grow with one’s business is essential to maintaining a strong northeast agricultural industry. On my farm, the relationship I have maintained with Farm Credit East has been critical to my farm’s growth. It is essential to maintain Farm Credit East as a relationship lender that will stick with customers through good times and bad.

Why I Am Seeking Reelection to the Board: Farm Credit East has been instrumental in my business’s growth and success. I am compelled to become involved in organizations that have provided me with value in my career. The availability of capital and business services Farm Credit East provides is essential to maintain a strong, stable northeast agricultural industry in which I am a part.

JAMES ALVIN ROBBINS II Business Experience: James is president of Robbins Lumber Inc., a fully integrated sawmill that produces Eastern White Pine lumber and manages 27,000 acres of timberland in Maine. James is also the manager of Georges River Energy, LLC, which is currently building an 8.5 megawatt power plant to burn wood waste and produce electrical power.

Leadership/Community Experience: James has served on the association nominating committee and

ROBBINS LUMBER INC.

is currently on the Farm Credit East Board of Directors, having served on both the AgInitiative and

53 Ghent Road, Searsmont ME

Governance committees. He is past president of the Maine Wood Products Association and a member of

RLCO.com

the Northeastern Lumber Manufacturers Association. James is also a Scout leader and is actively involved in his church.

Why Farm Credit is Critical to My Business: Farm Credit plays a very important role as our lender and has been a key player in our success.

Because of this key role, it is mutually beneficial to be actively involved on the board. I believe that I need to represent the manufacturers, loggers and landowners on the board and bring an important sector of agriculture to the table.

Why I Am Seeking Reelection to the Board: I am the only elected manufacturer on the board and I bring experience from the forest products sector with log buying, lumber manufacturing and biomass generation. The forest products industry has a unique lending cycle that needs representation on the board. I appreciate what Farm Credit East has done for our company and I believe I can give back to our institution by representing manufacturers and forest products businesses.

SPRING 2018

21

from the Central Region: Burrville, Claverack, Cooperstown, Greenwich, Middletown SEAT 2 Nominated and Potsdam offices. Two candidates are running for a four-year term.

PETER JAMES BARTON Business Experience: Peter is owner and operator of Barton Entertainment Co., LLC, overseeing Barton Orchards, a diverse 175-acre agritourism farm operation offering 18 different commodities for pick-yourown from vegetables to field crops to tree fruit. Peter has managed the family-run business for 25 years.

Leadership/Community Experience: Peter has served on the Claverack Customer Service Council for 10 years and is a current Farm Credit East director. He was active on his town board for 12 years,

BARTON ENTERTAINMENT CO., LLC 63 Apple Tree Lane, Poughquag NY

BartonOrchards.com

representing the highway, recreation and planning committees, and also served as deputy supervisor for six years. Peter also serves on the board of Crunch Time Growers, representing direct marketing.

Why Farm Credit is Critical to My Business: In today’s business climate, a strong partner who understands the ever-changing demands is essential to the growth and well-being of our family operations. Farm Credit East is the partner that understands and invests when our businesses are

growing, as well as guides and mentors when adversity is presented to us. A strong cooperative breeds a vibrant membership and it is all fostered from the top. Without engaged leadership, our relationships would be presented with unwanted burdens.

Why I Am Seeking Reelection to the Board: I have been fortunate to be part of the Farm Credit East Board for two years and I’m extremely impressed with the way our cooperative is governed. Senior management’s insight into various industries, their understanding of the causes and effects of market fluctuations, coupled with strong risk management, creates a superior work environment. It truly is the most rewarding board I have ever served on and would be honored to continue.

PHILIP JAMISON JONES Business Experience: Philip “Jamie” Jones is co-owner and managing member of Jones Family Farms, LLC, a sixth-generation, 400-acre retail farm growing strawberries, blueberries, pumpkins and Christmas trees.

Jamie is also owner of Jones Family Farms Winery, LLC, a 5,000 case vineyard and winery. His primary role is coordinating crop management and winery production.

Leadership/Community Experience: Jamie serves on the Middletown Customer Service Council,

JONES FAMILY FARMS, LLC JONES FAMILY FARMS WINERY, LLC 605 Walnut Tree Hill Road, Shelton CT

JonesFamilyFarms.com

and previously served as a Farm Credit East director (2014 -2017), including serving as Governance Committee chair. Jamie has also served as vice president of Connecticut Farm Bureau and president of the Connecticut Vineyard and Winery Association.

Why Farm Credit is Critical to My Business: Farm Credit has been a vital component to my family’s farms’ success and growth over the past 70 years. We rely on financial services such as payroll and tax

preparation to streamline our office operations. The ability to finance capital expansion projects has enabled us to expand quickly to meet market demands. Participation in the Retail and Winery Benchmarks helps guide the strategic direction of our business. I want to ensure these services remain viable and potentially strengthened to enable northeast agricultural enterprises to thrive.

Why I Am Seeking Election to the Board: Four years ago I ran for the board to become more engaged in the cooperative. I was humbled to be elected. The time I spent serving was educational, demanding and enriching. I now have an even greater appreciation for Farm Credit East’s scope of operations and importance to northeast agriculture. I believe my agricultural and business experiences can continue to help guide our cooperative in a positive direction.

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FINANCIAL PARTNER

from the Western Region: Batavia, Cortland, Geneva, Hornell and Mayville offices.

SEAT 3 Nominated Two candidates are running for a four-year term.

BRETT D. KREHER Business Experience: Brett is partner at Kreher’s Poultry Farms (and related entities), an egg production business raising just under two million hens that produce conventional and organic eggs across three locations. The business also has conventional and organic crop operations growing corn, soybeans, wheat and vegetables. Brett’s primary role is overseeing the crop operations and much of the administrative functions for all owned entities.

Leadership/Community Experience: Brett has served on the Batavia Customer Service Council and the

KREHER’S FARM FRESH EGGS, LLC 5411 Davison Road, Clarence NY KreherEggs.com

association nominating committee. He is chair of the Erie County Ag and Farmland Protection Board, past president of Erie County Farm Bureau and serves on the Town of Clarence Municipal Agricultural & Farmland Protection Plan Committee. Brett is also active at his church.

Why Farm Credit is Critical to My Business: Farm Credit East is in a position to understand the unique

financing needs of modern farms in times of growth and during challenging times. Farm Credit East acts as a powerful bridge, enabling farms to access credit markets, by aggregating a large group of farmers in a cooperative such that we can organize and operate our own credit institution and afford exemplary staff to run it. Our farm has always utilized borrowed capital, which has enabled us to grow into a fourthgeneration operation. We are grateful to have excellent access to low-cost and secure borrowed capital.

Why I Am Seeking Election to the Board: I have worked at our farm for 28 years, giving me substantial experience in large-scale production agriculture, both conventional and organic. I am still active in farm management, but more leadership is being assumed by the family’s next generation, which allows me to “give back”. At the same time, I am eager for the professional challenge of being a valuable board contributor.

The experience of serving on the board (and education and training involved) will challenge me to grow professionally.

TERRY RIDER ZITTEL Business Experience: Terry is corporate secretary and business manager of Amos Zittel & Sons, Inc., a 300-acre wholesale fresh market vegetable, flower and retail market business, including rooted liners and a spring finished crop in three acres of greenhouses. As a Ball Seed® rooting station, Zittel’s grow 950 different varieties of vegetative annuals. Terry acts as comptroller and manages wholesale flower sales and buying for the retail division, accounting, and human resources for refugees, H-2A and migrant labor.

Leadership/Community Experience: Terry previously worked as a farm business management agent and

AMOS ZITTEL & SONS, INC. 3275 Webster Road, Eden NY Zittels.com

acting program leader for a Cooperative Extension dairy team. She’s also director and past president of the Eden Community Foundation and Eden All Sports Boosters clubs. She is the treasurer/bookkeeper for Harvest Malawi, a 501c3 (status pending) agricultural development organization, and served on various church and school organizations.

Why Farm Credit is Critical to My Business: Farm Credit provided us with loans and financial advice, but after a snow disaster in 2014, we fully realized the value of a good relationship between a credit institution and farmer. Farm Credit East understands our industry and we appreciated the help they provided us during a time of need. Additionally, Farm Credit East has provided invaluable advice on succession planning and enterprise analysis, both important to the success of a fifth-generation farm.

Why I Am Seeking Election to the Board: Farm Credit has been an integral part of our business for over 40 years. I have a deep-seated respect for Farm Credit East and feel it is very important to give back to our industry. After a difficult three years writing grants, obtaining financing and rebuilding our business, and having raised four children, I now have time to become involved in activities away from the farm. I can make a positive impact on the ag economy and use my 35 years of experience dealing with vegetable, flower and dairy businesses to help advise Farm Credit East management.

SPRING 2018

23

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

PRSRT STD U.S. Postage PAID Permit No. 690 Springfield, MA

Address Service Requested

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 Matuszewski, Editor, Farm Credit East, 240 South Road, Enfield, CT 06082-4451 CALL: 860.741.4380 E-MAIL: kristie.matuszewski@farmcrediteast.com ©2018 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.

Continued Growth of FarmStart Investments to Support Beginning Farmers

Chr is Pian t a, own er of Far mSt and Org anic s, LLC , in Col che ster , Con n., with Far mSt ar t adv isor Sam ant ha St . Jea n, from Far m Cre dit Eas t’s Day vill e, Con n. of fice .

2017 was a record year for Farm Credit’s FarmStart program,

directly into root zones. FarmStandOrganics’ goal is to develop a

which invested in 44 beginning farmer and fishing businesses

sustainable business model to ultimately be replicated by other

last year. Furthermore, the innovative Northeast program to help

interested farmers.

individuals get started in agriculture, announced the approval of its 250th investment in a beginning farmer’s business.

“FarmStart’s growth over the past few years speaks volumes to

FarmStart, LLP was initiated by Farm Credit East and CoBank as part of Farm Credit’s long-term commitment to support a vibrant, entrepreneurial northeast agricultural community. Yankee

the strength and future of northeast agriculture, and the interest

Farm Credit joined the program in 2011. The program invests

of people to get involved,” said Lynn Weaver, FarmStart program

working capital of up to $75,000 to help beginning northeast farm

manager.

businesses and cooperatives become operational. Since the first

The program’s 250th investment was to FarmStandOrganics,

investment approved in August 2006, FarmStart has invested more

LLC in Colchester, Conn. FarmStandOrganics plans to grow herbs

than $11.3 million with 251 agricultural entrepreneurs throughout

and vegetables year-round in a 3,000 square foot indoor warehouse,

New York, New Jersey and New England.

using sub-surface micro-irrigation. The produce will be grown using AerogationTM technology, which delivers water and air

LEARN MORE: FARMCREDITEAST.COM/FARMSTART