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FarmCreditEast.com
Growth of the
Craft Beverage Industry in the Northeast SUMMER 2019
INSIDE
2 | News & Views
10 | CASE Partnership
14 | Public Policy Update
3 | CEO Column
11 | Country Living
16 | Thunder View Farms
4 | Cover Story
12 | Community Involvement
17 | Scholarship Recipients
N E & W V IE S WS Visit us at Empire Farm Days! Stop by and visit Farm Credit East at this year’s Empire Farm Days taking place August 6, 7 and 8, in Seneca Falls, NY. Farm Credit East will be raffling two YETI® coolers each day of the show, so be sure to visit our tent at 526 East Seneca Acres Avenue to enter
Welcome New Board Members In April, customer-members elected two new directors to the Farm Credit East Board. Kurt Alstede, of Chester, N.J., was elected to a four-year term. Kurt is founder, owner and general manager of Alstede Farms, LLC, a 600-acre vertically integrated fruit and vegetable operation.
James Robbins II, of Searsmont, Maine, was elected to a four-year term. James is president of Robbins Lumber Inc., a fully integrated sawmill which manages 27,000 acres of timberland.
for your chance to win.
Looking for local farm products? Are you looking for fresh, quality farm products in your local area? Visit Farm Credit East’s Farm Fresh Guide!
FarmCreditEast.com/FarmFreshGuide
In other regions, Peter Call, president of My-T Acres, Inc., a vegetable and grain operation in Batavia, N.Y., was reelected to a four-year term. Laurie Griffen, co-owner and operator of Saratoga Sod Farm in Stillwater, N.Y., was also reelected to a four-year term. In April, the Board reelected Matthew Beaton, of Wareham, Mass., as its chair, and Laurie Griffen, of Stillwater, N.Y., as vice chair. Congratulations to the winning candidates, and thank you to our customermembers for voting and to our nominating committee for providing an excellent slate of candidates. For more information on Farm Credit East’s Board of Directors, visit FarmCreditEast.com/Board.
Grant Resources Available
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In addition to providing grant writing services, Farm Credit East has also compiled a report that lists grants and incentives for Northeast producers. Learn more: FarmCreditEast.com/grants
funding is available for business planning, benchmarking and profitability analysis. The grant covers 80% of the cost, up to $5,000, for a business consultant to work with you to develop a plan for your farm.
New York Dairy Acceleration Program The goal of this program is to enhance the viability of New York dairy farms. Grant
The program is funded by New York State and administered by Cornell University’s PRO-DAIRY program. Funding can also be used for environmental project planning,
FINANCIAL PARTNER
assistance with financial recordkeeping, and continued work with a business consultant to implement your business plan. Contact your local Farm Credit East business consultant to apply. To be eligible, you must be shipping milk in New York. For more information, visit: https://prodairy. cals.cornell.edu/dairy-acceleration/
MADE IN AGRICULTURE
CEO’s MESSAGE
Bill Lipinski, CEO, Farm Credit East In June, Farm Credit East was pleased to
The same is true in the forest products and
This issue of Financial Partner
launch a new brand advertising campaign
fishing sectors. As a lender and financial
highlights examples of customers who
titled, “Made in Agriculture.” This new
services provider built for the industries
capture the spirit of what it means to be
campaign builds on its predecessor
we serve, we have that same resilience and
Made in Agriculture. One of the keys to
campaign, “We Are You,” to emphasize our
commitment to serving our customers.
long-term success in agriculture is the
commitment to the farmers, commercial
We’re proud to provide specialized products
ability to adapt and innovate. With the
fishermen and forest products producers
and services and above all, the industry
fast-changing business environment and
that we serve, along with the communities
expertise our customers value.
evolving consumer tastes and preferences,
in which they operate.
the craft beverage businesses featured in this issue have spotted emerging
Farm Credit was founded specifically to
opportunities and figured out how to
serve the credit needs of agriculture. Just
capitalize on them.
like the producers we serve, we’ve evolved our business over the last century, but we’ve
The ability to take advantage of trends
never strayed from our founding mission.
is exemplified among the farm breweries, cideries and distilleries that are relatively
We’ve developed new products over
new to the craft beverage market, as well
the years, including financial services
as hundreds of wineries across our territory
such as record-keeping, tax planning
that have been an integral part of Northeast
and consulting, to help producers stay in
agriculture for decades. These pioneers in
compliance and make informed business decisions. We’ve also developed programs
the craft beverage space have excelled at As we transition from one campaign
growing and adapting their businesses to
to support the financial and management
to the other, it occurs to me that both the
needs of the next generation, including
new campaign and its predecessor say a lot
FarmStart investments and GenerationNext
about Farm Credit East as an organization.
training. All of these products were
The We Are You campaign emphasized our
a great way for producers to connect with
uniquely built to serve the needs of those
cooperative roots and our understanding
consumers to help them appreciate all that
operating in agriculture, forest products and
of customer needs because we work and
Northeast agriculture has to offer. As we
commercial fishing — they were made in
live alongside them in rural communities
enter the heart of the growing season across
agriculture.
across the Northeast. Made in Agriculture
the region, we hope that our new campaign
changing market conditions over time. The craft beverage industry has been
is a logical extension of that campaign. It
shows the pride we take in serving
The campaign is also intended to
builds upon our commitment to our mission
Northeast agriculture, forest products and
communicate what it means to be Made
and the bonds we share with our customers.
commercial fishing because like you, we’re
in Agriculture. Because of the nature of
Similar to a “Made in USA” product label, it
proud to be Made in Agriculture.
agricultural work, our customers have to be
invokes the pride and values associated with
resilient and committed for the long term.
our rural community roots.
SUMMER 2019
3
Growth of the
Craft Beverage Industry in the Northeast
Over the past decade, the Northeast has seen a significant boom in the craft beverage industry – from cideries to breweries, and even distilleries producing spirits from farm-grown products. But, we’d be remiss to overlook the pioneers in this “farm-to-bottle” movement — the wine industry. Let’s take a step back in time, to about four decades ago. In the early 1970s, there were hundreds of grape growers throughout the state of New York, but just over a dozen large-scale wineries. The majority of the state’s grapes were sold to a few large wine companies, and as some of those companies were bought by even larger distributors, it put pressure on prices. Additionally, competition from imported wine was increasing. The region’s grape growers were facing crisis. One solution was for the growers to start producing their own wine. However, laws dating back to Prohibition prohibited wineries from selling direct to consumers. These laws required a winery to sell 95% of its production through a distributor or wholesaler. The solution came in the form of the New York Farm Winery Act of 1976. Backed by
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FINANCIAL PARTNER
N AU T I S P I R I T S NAUTISPIRITS.COM
Located in Cape May, NJ, Nauti Spirits was founded by Steve Miller, an attorney based in Washington D.C. who had a fascination with the art and science behind distilling and the higher qualitative difference of farm-distilled spirits. So in 2012, he began his search for land in an area that held strong ties to his youth and to agriculture. Five years later, Nauti Spirits opened its doors on 60 acres of preserved farmland. To be a licensed distillery on preserved farmland in New Jersey, at least 51% of all production must come from what is grown on the farm or on land controlled by the farm owner. Steve says they far exceed that. “What we don’t grow on site, we either grow on leased farmland or source from farms within 45 miles of our distillery – except for the molasses that we use for our rum, since sugarcane is not grown in the Northeast.” Nauti Spirits vodka is produced from homegrown sweet potatoes and corn, the gin base is 100% New Jersey grown wheat, and the bourbon is made from local corn, rye and malted barley.
SUMMER 2018
5
a team of grape growers, this act was signed
producers, accounting for 11% of total U.S.
consultant and director of the Winery
into law by New York Governor Hugh Carey
production, according to a study by Cornell
Benchmarks program.
in June 1976. It reduced licensing costs,
University. Today, all Northeast states have
eliminated restrictions on direct-to-consumer
passed some form of craft beverage legislation.
sales, and provided tax and marketing advantages. Most importantly, it led to the birth of the region’s small-scale wineries. Today, there are more than 400 wineries across New York State.
industries that are tapping into the success of
We recently spoke with industry experts and
the wine industry,” Gregg continued. “They’re
entrepreneurs in the various craft beverage
opening up along existing wine trails or in
sectors to learn more about the trends they’re
major population centers and can tap into the
seeing and how businesses are evolving to
same visitor streams and capture on that same
differentiate themselves in the marketplace.
excitement of local food and beverage.”
Following suit, Connecticut passed a similar
These businesses are taking unique
law in 1980 and then New Jersey in 1981.
approaches to marketing their products and
Interestingly, New Hampshire was actually
growing their businesses, all while staying
the first Northeast state to pass legislation
true to their farm roots.
cutting some of the red tape for farm wineries
“Now there’s a proliferation of other beverage
Lindsey Pashow, agriculture business development and marketing specialist with Cornell’s Harvest New York program, can attest to this recent growth in the cider industry. “Five
but didn’t have the same mass of growers.
GROWTH OF THE CRAFT BEVERAGE INDUSTRY
years ago, you’d go to a restaurant and hard
Each of these laws aimed to ease Prohibition-
The 1970’s farm winery legislation kick-
era restrictions and facilitate the growth of
where hard cider goes at a premium.”
started the modern small beverage
the regional wine industry. There are more
movement. However, the Northeast wine
than 700 wineries across the Northeast today.
industry didn’t gain its footing overnight.
Three decades later, New York signed into law
“There needed to be enough wineries in
similar legislation for farm distilleries (2007),
important boost to the craft beverage
close proximity to make tourism possible.
and later farm breweries (2012) and hard
industry,” said Sam Filler, executive director
It took three decades to build up a critical
cideries (2013). 2014’s Craft New York Act
of the New York Wine & Grape Foundation.
mass of winery businesses in our region, and
further eased regulations to benefit the small
“In New York, the state government offered
that concentration is necessary for tourism
craft beverage industry. As a result of these
craft beverage producers a one-stop shop to
to be a fun, exciting thing to do,” said Gregg
pioneering efforts, the Empire State ranks first
have their questions answered.”
McConnell, Farm Credit East business
cider wasn’t even on tap. Now, there’s places
“The clarification and modernization of regulations to be more sensible for today’s business practices have been a really
in the nation for the number of hard cider
N O RT H F O R K B R E W I N G C O. N O RT H F O R K B R E W I N G C O. C O M
With backgrounds in brewing, chemistry and farming, Peter Barraud and Ian Van Bourgondien opened North Fork Brewing Co. in Riverhead, NY, in 2018. In addition to growing their own hops on their family’s farm, Ian’s background in brewers’ yeast enables him to cultivate local, wild and unique strains of yeast to use in their beers. For example, he’s able to cultivate yeast that came from blackberries grown on the farm. “We’re able to make very unique beers that add an additional local element,” said Ian. New York farm breweries are required to source up to 60% of ingredients locally, but Ian says some of their beers actually incorporate 100% local ingredients, with all of the hops grown on their farm and barley sourced from upstate New York.
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The name says it all. “We chose the name because we wanted to be indicative of our region,” said Ian. “We wanted to make a great local product that featured produce from the only area on Long Island that is still in production agriculture, yet still make it feel very welcome to those who visit.” FINANCIAL PARTNER
INTEREST IN LOCALLY GROWN There’s no doubt the buy local movement has been a tremendous driver for the craft beverage industry. “Early successes in the wine industry got people excited, and now the
BAD SEED C I D E R C O M PA N Y BADSEEDHARDCIDER.COM
local food movement has stoked the beverage industry,” said Gregg McConnell. “People are rediscovering their food and beverages.” The local movement is a key driver for Nauti Spirits, located in Cape May, NJ, as it is for many of the farm craft beverage producers we spoke with. “The tourism that comes through our area lives on the farm-to-table, farm-tobottle concept,” said Patti Goyette, marketing and events manager at Nauti Spirits. Even more than just interest in locally produced products, people are interested in discovering
Albert Wilklow is the sixth generation of his family’s farm, and together with his friend Devin, began making cider as a hobby using apples grown on the family farm in Highland, NY. In 2011, they decided to market that product under the name Bad Seed Cider Company. Their cider really got its start at New York City greenmarkets. “That’s how we found our distributors and we received some great write-ups in the press,” said Albert.
something new. Diversifying product offerings is one way many craft beverage producers are differentiating their products in the marketplace. “That’s why tasting rooms remain important. Consumers can sample limited production products in tasting rooms to stay in the know,” said Sam Filler. At Three Brothers Winery, that diversification has always been a focus. “From the day we opened, people were asking for beer,” said Erica Paolicelli, part
Nearly a decade later, Bad Seed Cider ventured away from its greenmarket roots and opened a tap room in Brooklyn in 2017. This tap room is in addition to their refurbished barn tap room on the 60-acre Hudson Valley farm. And last year they opened their third, seasonal tap room built out of a shipping container. That’s open in September and October alongside the farm’s apple-picking orchard.
owner of the winery. “In 2009, we opened a brewery tap room and experimented with beer and cider. It was popular because we could offer something for everyone.” Most recently, the winery began offering a hard seltzer. “Diversification is an important tool for us,” continued Erica. “If there’s a bad year for our grapes, we have beer or cider to fall back on.”
From the get-go, their focus has been on dry cider. “Our goal was to market more toward the beer crowd with drier varieties in 12oz. packaging,” said Albert. “When we first got started, people wouldn’t know what cider was. Now people are starting to look for cider, and dry cider at that.”
DIRECT-TO-CONSUMER EXPERIENCE Most craft beverage producers remain focused on selling direct to their consumers. “At one point, we sold our products from Maine to the Carolinas, but after a decade of expanding distribution, we switched
“At the same time, cider has so many different flavors but it’s all just called ‘cider.’ So the market is really starting to hone in on what cider is, and it’s exciting to see that start to take shape.”
our focus to our local community,” said Bill Russell, owner of Buzzards Bay Brewing. “We wanted to be part of the neighborhood in a more significant way, so we made a commitment to switch our focus. Now, with a few exceptions, you can only find our beers within 30 miles of our brewery.”
SUMMER 2019
7
THREE BROTHERS WINERIES & E S TAT E S
This direct-to-consumer marketing allows
3 B R O T H E R S W I N E RY. C O M
tasting room, and I think that’s true across
craft beverage producers to maintain the control of their product. It also enables them to create an experience for their consumer — another differentiator. “It’s often still the owners or the wine makers working the all the categories. That offers consumers a personal relationship with the person making their product,” said Sam Filler. Three Brothers Winery is home to three separate wineries that are each themed
Erica Paolicelli, part owner of Three Brothers Winery, stumbled into a growing winery business during a semester home from college. At the time, the site had only a 10-by-10 foot tasting shack on the northeast end of Seneca Lake, but owners Dave and his wife Luanne had a vision — and a progressive vision at that. They began building three unique tasting rooms on premises, and just over a decade later, their site in Geneva, NY, is home to seven buildings, including War Horse Brewing Co. that opened two years ago.
differently. There are photo opportunities around the property and people share those photos captured while visiting on social media, which helps spread the word. “People trust other people and we’ve really used that to our full advantage,” said Erica Paolicelli. At North Fork Brewing, co-owner Ian Van Bourgondien said they’re focused on the consumer experience. “We have the most control over our products by serving them in house, and that consumer relations is a
“The idea to have three wineries in one location is pretty unique,” said Erica. “But Dave knew that people wanted to go somewhere that was more concentrated. He also ensured that each of our three wineries offered something different.”
real benefit.”
BENEFIT TO LOCAL ECONOMIES Beyond the growth of the wineries, distilleries, cideries and breweries themselves, these businesses are also having positive impacts on their local communities. “Over the last 12 years, Geneva has come full circle as a tourist community,”
With that progressive mindset, the winery has always been focused on the diversity of their portfolio. In addition to their wines, they also brew their own beer and make their own hard cider, hard seltzer water and a wine spritzer on premises. “There’s an expectation that something is going to be new each year,” said Erica. “So expanding our production is how we’ve offered that.”
commented Erica Paolicelli. Down on Long Island, North Fork Brewing is seeing a similar community build up around the craft beverage industry. “There’s auxiliary businesses starting up as a result of the growing brewery scene, including a bike tour company that started five years ago,” said Ian Van Bourgondien. “The craft beverage industry is an important employer and an important tourism driver, attracting outside visitors and outside dollars. That’s the greater community development impact,” said Sam Filler. According to data from Wine America, here in the Northeast, there are just over 700 wineries. These businesses contribute, directly and indirectly, more than $6.6 billion to their local economies and support thousands of
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FINANCIAL PARTNER
B UZ Z A R D S B AY B R E W I N G B U Z Z A R D S B R E W. C O M
The Russell family began making wine in 1989. Their focus was on farming the land for its flavor and they were intrigued by how unique, local flavors could differentiate their wine from other regions. But, son Bill was also fascinated with brewing. In the late ‘90s, his parents and brother got behind his passion and experimentation to break ground for Buzzards Bay Brewing in Westport, Mass. Bill said they’ve had a bit of trial and error over the years, from experimenting with growing their own hops to growing different grain varieties. They’ve also experimented with different types of beer, learning that the customers in their backyard don’t have the same palate as the customers in Boston. After 21 years, they’re pleased to be able to explore local flavors in their beers, especially due to the proliferation of malt houses throughout New England. Westport Rivers Winery and Buzzards Bay Brewing continue to complement each other, and their focus remains on the local neighborhood. “We’re in a community of hardworking farmers and fishermen who, at the end of a hard day’s work, enjoy delicious, easy-drinking beer, so that’s the refreshing type of beer we produce.”
IT STARTS AT THE FARM
jobs, according to Farm Credit East’s Northeast
On Long Island, North Fork Brewing co-
Economic Engine report. Similarly, a recent
owner Peter Barraud worked in a neighboring
Cornell University study found that New York
brewery to gain extra experience, on top of
Of all the craft beverage entrepreneurs we
hard cider producers contributed $44 million
several years of prior experience brewing
spoke with, they couldn’t stress enough the
in direct economic impacts.
in New Hampshire, before opening. “We’re
importance of their farm roots. “We’re proud
all working together to help each other out
to be part of a farming family and we always
because if we don’t support each other, then
try to source local ingredients. We also try
The craft beverage producers we spoke
we’re just putting each other out of business,”
to feature other farms when we can so that
to pointed out the value of concentration.
said Ian Van Bourgondien.
people get a real taste of the North Fork,”
None saw their neighbors as competition
In New Jersey, that same comradery exists
or expressed concern over the growing
among the wineries, breweries, distilleries
Nauti Spirits chose its location specifically
selection in the marketplace. If anything,
and even local restaurants. “We’ve
because of its farm roots. “We wanted to
they affirmed that the concentration of other
collaborated with a local brewery and some
be in South Jersey because of its strong
similar businesses was a benefit, and that
restaurants are combining our spirits with
agricultural tradition that most people don’t
there’s even room for more.
local wine to make cocktails on their menus.
realize when they think of New Jersey,” said
“We were one of five cideries in New York
It’s an up-and-coming, exciting avenue of
owner Steve Miller. “I don’t think we would
State when we first got started, and now
production and we’re all working together,”
have started this distillery if we couldn’t do it
there’s over 100,” said Albert Wilklow, owner
said Patti Goyette.
on farmland because producing spirits from
of Bad Seed Cider Company. “The Hudson
“Taprooms create a consumer experience
Valley is being recognized as a destination for
creates such a marked difference qualitatively
where it’s as much about enjoying a beer as it
cider, and much of our taproom business is
and experientially.”
is about sharing conversation,” said Bill Russell.
resulting from the concentration of cideries
“We’re not just brewing beer, we are brewing
in our area. It’s an exciting avenue for the
community, and when other local craft
apple industry.”
beverage producers do well, we all rise up.”
CRAFT BEVERAGE COMMUNITY
said Ian Van Bourgondien.
crops you’ve grown on site or sourced locally
SUMMER 2019
9
FARM CREDIT EAST PARTNERS WITH
C A SE t o Suppor t t he Nex t Gener a t ion o f Indus t r y L eader s When Farm Credit East celebrated its centennial in 2016, the Board of Directors wanted to mark that important milestone with an investment in the future of Northeast agriculture. They delivered on that goal by announcing a major financial commitment to agricultural education at the 2016 annual meeting. Thus marked the beginning of a strategic partnership between Farm Credit East and the Curriculum for Agricultural Science Education (CASE). CASE is a project of the National Association of Agricultural Educators (NAAE) and seeks to enhance secondary agricultural education using hands-on learning that integrates Science, Technology, Engineering and Math (STEM) principles. CASE has several pathways that build upon the base course, Introduction to Agriculture, Food and Natural Resources (AFNR). After taking AFNR, students can take courses in subjects like Plant Science, Animal Science and Agricultural Power and Technology. Teachers become certified to teach these courses by attending CASE institutes. Since 2016, Farm Credit East has partnered with CASE on two important initiatives. Given that the cost to attend institutes can be a barrier for schools to use CASE, Farm Credit East began offering scholarships to ag teachers to help defray the attendance cost. 10
FINANCIAL PARTNER
Over the past four years, Farm Credit East has provided almost $64,000 to help certify 71 educators to teach CASE courses. The other major initiative is the development of a new CASE Agricultural Business Foundations course. Contributions from Farm Credit East, as well as the New Jersey Agricultural Leadership fund (created in memory of Farm Credit East employee Joshua Geary), provided the funding to design the course, and we also provided input on the course’s content. The new curriculum, piloted in the 201819 school year, is designed to be incorporated into an existing CASE course or offered independently as a one-semester course. Feedback from teachers that reviewed the Agricultural Business Foundations course has been very positive (see sidebar). This summer, 80 teachers throughout New York and New Jersey will be trained to instruct the course. Training sessions will also be held at six other locations across the U.S. Supporting CASE is just one way Farm Credit East is committed to the future of Northeast agriculture. Regardless of ag students’ future career paths, the CASE program will help prepare these future industry leaders for a bright future, and Farm Credit East is proud to be a part of that.
He a r w ha t pilo t t e acher s o f t he A gr icul t ur a l Bu sine s s F ounda t ions c our se had t o s a y “The course provides students an opportunity to develop a solid foundation in agricultural business concepts and skills, which will be invaluable for many of these students as they move forward into college and careers. I have received great feedback from students that are using the curriculum. One student recently commented, ‘I didn’t think I would like the agriculture business lessons, but they are starting to grow on me! I thought it would be really hard and boring, but this really makes sense to me.’” – NY teacher
“Overall, I think the rigor in this business course is higher than anything I have seen from an ag business curriculum! ” – Iowa teacher
“I am excited for this curriculum. I like it a lot! It makes me want to enter a high school classroom again! That is exciting! I think that this curriculum will do a great job teaching students about agricultural business in a project based/hands-on way.” – NY teacher
“
FARM CREDIT EAST PARTNERS WITH
The refinance was simple. Most banks don’t know how to handle farm buildings or extra land.
”
–Donald Fish
Donald Fish with his granddaughter on his farm in Bolton, Conn.
D
Purchasing a Dream Farm
onald and Sharon Fish own and operate Fish Family Farm. This 211-acre farm located in Bolton, Conn., is home to a herd of Jersey cows. The milk is bottled in old-fashioned glass bottles and sold in their retail farm store along with ice cream, cheese and other products. Don also owns DW Fish Real Estate. Don says he picked the farm out when he was six years old. It was his dream to own it one day and he was fortunate to make that dream a reality in 1981. The property also includes a farmhouse built in the 18th century where Don and his wife Sharon raised their children.
Living from Farm Credit East. “The refinance was simple,” said Don. “Most banks don’t know how to handle farm buildings or extra land.” Above all, Don is appreciative. “If you have a dream for something at six years old, and you get a chance to buy it, you’ve got to be pretty appreciative, and I am.” To keep the family tradition, Don and Sharon will one day leave their dream property to their three daughters. CountryLivingLoans.com Farm Credit East NMLS No. 522993
Nearly four decades later, Don and Sharon refinanced their part-time farm through Country SUMMER 2019
11
Farm Credit East Staff in the Community Just as Farm Credit East was made in agriculture, so are our employees. More than just assisting our customers with their day-to-day credit and financial services needs, staff are committed to helping the rural communities, in which they both work and live, thrive. In some cases, this includes providing financial support to community organizations, and at other times, staff look forward to opportunities to work hands-on. Here are a few examples of staff jumping in to help out in the local community.
This spring, sta ff me
mbers from Farm Cr edit East’s Br idgeto n, NJ, off ice tournament that be nefitted the Woodsto Business Associatio wn Pilesgrove n, a community orga nization that works area businesses. Sta to pr omote ff had a great time rai sing money for a loc and two of the team’ al charity s members blasted home ru ns out of the park! played in a softball
eck d n o n to Bridge
Farm Credit East’s Cortland, NY, office y participated in the Cortland County Dair float the ned desig Parade in early June. Staff in honor of the 50th Anniversary of the for moon landing — “That’s one smal l step a cow, one giant leap for dairy!” Staff were excited to win Best Busi ness Float.
Cortland 12
FINANCIAL PARTNER
blasts of f for dai ry
In Apr il, staff from the Day ville, Con n., office helped the Windham-Tolland Cou nty 4H Camp prepare for their annual tag sale fundraiser. It was the camp’s 65th fundraiser and funds raised supporte d camp activities. Staff had a fun time digging through and sorting the many donations!
H camp 4 l a c o out at l s p l e h Dayville This June, Farm Credit East’s Middletown, NY, office participated in its ninth Relay for Life event to support the American Cancer Society. In total, friends, family and customers generously contributed almost $6,000 toward cancer research and to increase awareness. Overall, this year’s event raised over $100,000! At the event, the Middletown team also scooped delicious ice cream for attendees to make their own sundaes.
s forward to , off ice look Y N , am d ts Dairy East’s Po nce Cou nty Farm Credit al St. Lawre u n for an e th g in e was “Mil k par ticipatin is year’s them h T . ar ye d to inclu e ade each many ways Pri ncess Par e th t u o ab d the public ra-f iltered an A ll” to in form ose-free, u lt ct la m o fr d he Pots am r diets — ice cream. T m il k in thei d an rt gu to cheese, yo place in the whole m il k, to win first at o fl s it r cited fo team was ex division ! com mercial
Middletow n su cancer res pports earch
Potsdam celebrates dairy month with “Milk for All” The Presque Isle, Maine, office was pleased to donate two bikes as part of a local effort to give bikes to children who may not otherwise have the opportunity to own one. Thanks to the generosity of the
es bicycles t a n o d e l s I Presque
community, over 100 bikes were donated to area children!
SUMMER 2019
13
WASHINGTON Update
Tom Cosgrove Senior Vice President for Public Affairs
A STORMY SPRING:
WEATHER, TRADE POLICY AND DISASTER ASSISTANCE By all accounts it is has been a
Signals out of Washington have been as
TRADE
challenging spring in farm country. While
unpredictable as the weather, with a mixture
it’s difficult to characterize weather across
of positive and negative developments
trade policy will change by the time this issue
all seven states of Farm Credit East’s service
on trade. Policymakers sought to provide
of Financial Partner arrives, but there were
territory, in general, it was a late, wet spring.
producers with relief for losses related
a number of noteworthy developments this
And as bad as weather was in the Northeast,
to both trade and weather with USDA
spring. With the breakdown of negotiations
it has been worse in many other regions.
announcing another round of trade-related
for a broader trade deal between China and
With excessive rainfall and disastrous
assistance. Additionally, Congress passed a
the U.S. on May 10, the U.S. announced it
flooding in many parts of the Great Plains
disaster relief bill that included assistance for
would raise tariffs from 10% to 25% on $200
and Midwest, national planting progress is
producers impacted by last fall’s hurricanes
billion of Chinese imports. China responded
well behind the five-year average.
and wildfires and this spring’s flooding.
by announcing it would impose additional
It is very possible that the situation on
A TURBULENT MONTH IN THE WORLD OF TRADE POLICY MAY 10, 2019 • Extensive trade talks with China ended without an agreement • The Trump Administration raised the tariffs on another $200 billion in Chinese imports from 10% to 25%
MILK PRICE December Class III Futures 14
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$16.31
MAY 13, 2019 • China announced new tariffs on $60 billion of American exports o Additional tariffs on another $300 billion in Chinese goods were being considered, pending a USTR hearing and a public comment period
$16.16
• The Trump Administration subsequently announced another Market Facilitation Program with direct payments of $14.5 billion, plus another $1.6 billion in related aid, to further offset the impact of the tariffs on the American farmer
retaliatory tariffs on a number of U.S. food and agricultural products. Following these developments, USDA
returned in June, the $19.1 billion bill,
As seen with the immigration related tariffs with Mexico, tariffs, or the threat of
which included $3 billion in assistance for
them, can be removed as quickly as they are
farmers, was overwhelmingly passed and
announced it would provide another round
announced. At times, these policy changes are
signed by the President.
of trade assistance for agricultural producers
announced in conjunction with major farm
impacted by the retaliatory tariffs. Many
product purchases, sending commodity prices
details are still being determined, but the $16
higher or lower, depending on the news.
OUTLOOK FOR THE REMAINDER OF 2019 While many of the recent severe weather events did not directly impact the
billion in trade assistance package has several components. A total of $14.5 billion will be direct payments to producers through the
DISASTER ASSISTANCE
Northeast, the resulting production shifts
Since the new Congress began in January,
and losses will impact market prices for
Market Facilitation Program, similar to the
it has been debating disaster assistance
inputs, crop and livestock products in the
one administered in 2018. The package also
for producers in the Southeast affected
Northeast. The same goes for trade.
includes $1.4 billion for food purchases and
by last fall’s hurricanes as well as Western
$100 million in export and trade promotion.
producers impacted by wildfires. This spring,
Farm Credit East’s Knowledge Exchange
As outlined in the April 2019 issue of
the legislation was expanded to include
Partner newsletter, about 20% of all
announcement that the steel and aluminum
producers impacted by the devastating
U.S. agricultural products are exported,
tariffs on imports from Canada and Mexico
spring weather in the Great Plains and
including an estimated 15% of Northeast
would be removed, paving the way for
Midwest. In many areas, the floods not only
production. But even for producers whose
Canada and Mexico to drop retaliatory tariffs
made it impossible to plant, but destroyed
output isn’t exported, almost all farm prices
on agricultural products. Many supporters
stored crops. Unlike the trade assistance
are impacted by international trade given
hoped this action might provide momentum
program, the disaster assistance bill will
that global markets impact the prices for
for legislative approval for the US Mexico
permit USDA to provide additional aid for
many Northeast products.
Canada Agreement (USMCA).
prevented planting, though it is unclear how
Later in May, there was a much welcomed
International trade is critical for
much or how it relates to producers who will
Northeast agriculture, forest products and
with Mexico was quickly followed by an
be eligible for payments under prevented
commercial fishing, and producers, and the
announcement that the administration would
planting crop insurance coverage.
entire industry, deserve policy certainty
This piece of positive trade news
impose a 5% tariff on goods from Mexico
This legislation had a rocky journey to
and stability in order to maintain the market
because it wasn’t doing enough to stop illegal
completion as it was held up for a time by
access needed to be successful. Predicting
immigration into the U.S. This tariff could
the Administration’s opposition to additional
what’s going to happen in trade policy for
then be increased each month by 5% until
assistance for Puerto Rico. It looked like it
the remainder of 2019 is about as difficult as
it reached 25%, however these tariffs were
was headed for final passage in the House
forecasting the weather, but here’s hoping
canceled just before they were to go into
over Memorial Day recess, but didn’t pass
that both trade policy and the weather are
effect in early June.
over the objections of members of the
less volatile for the remainder of 2019.
House Freedom Caucus. When Congress
MAY 20, 2019 • U.S. lifted the steel and aluminum tariffs on Canada and Mexico • Mexico lifted tariffs on U.S. steel, pork, cheese, whiskey and apples, among other goods, that had been imposed on June 5, 2018 • Canada lifted tariffs that were imposed on July 1, 2018
$16.51
o Value of the Canadian tariffs were set to match the value of the U.S. tariffs dollar-for-dollar and cover 299 U.S. goods o Products: steel, aluminum and a variety of other products, including inflatable boats, yogurt, whiskies, candles and sleeping bags
MAY 30, 2019 • The Trump Administration announced its intention to impose a 5% tariff on all
$16.18
imports from Mexico beginning on June 10, with tariffs increasing to 10% on July 1, and by another 5% each month for three months
JUNE 7, 2019 • The Trump Administration announced a deal with Mexico to avert the threatened tariffs on imports from Mexico in exchange for Mexico taking additional measures to curb illegal immigration to the U.S.
$16.26
SUMMER 2019
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3 NEW YORK FARM RECOGNIZED NATIONALLY FOR ENVIRONMENTAL STEWARDSHIP EFFORTS Earlier this year, Thunder View Farms LLC located in Grahamsville,
business committed to preserving and protecting the environment and
NY, was honored with the National Cattlemen’s Beef Association
land around it.”
Environmental Stewardship award. Established in 1991, this award recognizes outstanding land stewards in the cattle industry.
this award in the region and the first-ever eastern region operation to
Owned by brothers Philip and Richard Coombe, Thunder View Farms,
win nationally. Ric said that while this recognition is exciting for their
a registered Angus cow-calf producer, began in 1958. The farm raises
farm, it’s really a win for the New York cattle business.
and markets purebred breeding animals, both heifers and bulls, and also provides premium grass fed, corn finished beef directly to consumers from New York City to Albany. The founders remain involved in the day-to-day operations, but today, the farm is managed by its third generation, Ric Coombe. Needless to say, the farm is truly a family operation, with the fourth generation also becoming involved. “That’s what makes it go,” said Ric.
“
“It brings recognition to the quality of the cattle and the beef producers in general in the state of New York,” said Ric. “It’s also a win for the Watershed Agricultural Program
We’ve always had good faith and trust in Farm Credit, knowing that we were working with a lender who understands our business.
The farm was founded with the notion to not only preserve the land, but to do so
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Thunder View Farms is only the second New York operation to win
”
and their protection of New York City’s drinking water. This honor is just part of the growing overall health of our operation and the health of agriculture throughout the region, and we’re pleased to be a part of that.” Farm Credit East is pleased to recognize Thunder View Farms for this honor. Over the past 30 years,
in a way that the business could be successfully transferred to future
our working relationship has provided the farm with access to capital
generations. “We have worked hard to make sure that we’re able to do
for both operating and expansion projects. Ric said, “We’ve always had
both,” said Ric. “You can successfully transfer assets, but we also have
good faith and trust in Farm Credit, knowing that we were working
to successfully transfer the passion for raising quality cattle and a viable
with a lender who understands our business.”
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MEET OUR SCHOLARSHIP WINNERS
Farm Credit East congratulates our 32 scholarship winners, all aspiring to make a difference in their agricultural communities. This year students earned a collective $49,500 in scholarships to help them on their way to becoming the Northeast’s future leaders. Our scholarship supports students with a diversity of agricultural career aspirations and farm backgrounds from across our seven-state territory. Congratulations to these deserving students and best wishes for a successful educational experience.
CONNECTICUT
G AB R I E L L E G U I L L E M E T T E Lyman, Maine
A DA M L U CH O N Willington, Conn. UNIVERSITY OF MAINE MAJOR: FORESTRY CAREER PATH: FORESTER
Adam’s early education in forest management practices and concentration in natural resources has led him to pursue a career in forestry.
MAD I S O N S I M O N D S East Canaan, Conn. UNIVERSITY OF VERMONT MAJOR: VETERINARY SCIENCES AND FOOD SYSTEMS CAREER PATH: LARGE ANIMAL VETERINARIAN
Madison plans a career as a large animal veterinarian with a desire to also assist in implementing policy and change to help producers nationwide.
E M I LY SYM E Broad Brook, Conn. UNIVERSITY OF CONNECTICUT MAJOR: PLANT SCIENCE CAREER PATH: PLANT PATHOLOGY
Recognizing the importance of crop productivity research and teaching its practical application to producers, Emily aims to be a production agriculture consultant.
UNIVERSITY OF MAINE MAJOR: ANIMAL AND VETERINARY SCIENCES CAREER PATH: LARGE ANIMAL VETERINARIAN
After graduation, Gabbie plans to specialize in large animal reproductive health as she works towards her goal of owning her own practice. MASSACHUSETTS
CAR I NA K I L D U F F Canton, Mass. UNIVERSITY OF ILLINOIS COLLEGE OF VETERINARY MEDICINE MAJOR: VETERINARY SCIENCE CAREER PATH: LARGE ANIMAL VETERINARIAN
Carina’s ag education helped develop her love for animals. Her career goal is to open her own practice to provide affordable animal care.
G R E G O RY N O R R I S Westhampton, Mass. PENNSYLVANIA STATE UNIVERSITY MAJOR: ANIMAL SCIENCE CAREER PATH: DAIRY PRODUCTION AND MANAGEMENT
Greg hopes to combine his two interests, animal science and business, as he works toward a career supporting the profitability of dairy farms. NEW HAMPSHIRE
MAINE
K R I S T E N DAV I S New Sharon, Maine HUSSON UNIVERSITY MAJOR: MARKETING COMMUNICATIONS CAREER PATH: AGRICULTURAL MARKETING
Kristen hopes to use her degree in marketing communications to improve the connection between consumers and agricultural goods.
CAR O L I N E C R O U C H Loudon, NH SUNY COBLESKILL MAJOR: AGRICULTURAL BUSINESS CAREER PATH: AGRICULTURAL TEACHER
Her own education in agriculture sparked Caroline’s dream to pursue a career in ag education. She hopes to inspire youth in agriculture as well as manage her own sheep farm. SUMMER 2019
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TAY LO R D O R S EY
J O S H UA BAI L E Y
Milford, NH
Williamson, NY
UNIVERSITY OF KENTUCKY MAJOR: EQUINE SCIENCE CAREER PATH: LARGE ANIMAL VETERINARIAN
SUNY COBLESKILL MAJOR: AGRICULTURAL SCIENCE AND AGRIBUSINESS CAREER PATH: FRUIT FARM OWNER/MANAGER
Working on the farm since she was five, Taylor found her passion for working with animals. She plans a career in large animal medicine.
E M MA M I N E R
H AR R I S O N B R OWN
Merrimack, NH
Waterport, NY
UNIVERSITY OF NEW HAMPSHIRE MAJOR: ANIMAL SCIENCE CAREER PATH: LARGE ANIMAL VETERINARIAN
CORNELL UNIVERSITY MAJOR: AGRICULTURAL SCIENCE CAREER PATH: FRUIT FARM OWNER/MANAGER
Emma hopes to apply her education and hands-on experience in animal science and veterinary medicine to a career as a large animal veterinarian. NEW JERSEY
S I E R RA E ACH U S Elmer, NJ CUMBERLAND COUNTY COLLEGE MAJOR: AGRICULTURAL BUSINESS CAREER PATH: DAIRY FARM OWNER/MANAGER
Sierra hopes to apply her agribusiness education to a career on her family’s dairy farm, where she plans a career as both owner and herd manager.
E VA N M CI NT I R E Shamong, NJ MAINE MARITIME ACADEMY MAJOR: MARINE TRANSPORTATION OPERATIONS CAREER PATH: COMMERCIAL FISHING
Growing up in Cape May on his grandfather’s charter boat, Evan knew he wanted to spend his life on the water. He aspires to become captain of a commercial fishing vessel.
S A R A M EYE R Pittstown, NJ RUTGERS UNIVERSITY MAJOR: BUSINESS CAREER PATH: AGRIBUSINESS
Sara is working toward a career in agribusiness, managing the finances of a dairy farm as well as other business entities within the dairy industry. NEW YORK
J OH N AUWAE RT E R Blue Point, NY FARMINGDALE STATE COLLEGE MAJOR: HORTICULTURE TECHNOLOGY MANAGEMENT CAREER PATH: GARDEN CENTER OWNER/MANAGER
Ever since he was young, John knew he wanted to pursue a career in horticulture. He hopes to return home as a partner in his family’s retail garden center.
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Josh hopes to apply his education in agricultural science and agribusiness to a career in the apple production industry.
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Harrison, an eighth-generation fruit farmer, plans to bring progressive strategies and ideas back to his family operation to help its continued growth.
FAI TH C L AN CY New Woodstock, NY SUNY COBLESKILL MAJOR: AGRICULTURAL BUSINESS MANAGEMENT CAREER PATH: AGRIBUSINESS
Faith hopes to pursue a career in sales, marketing or finance to assist those working in the agriculture industry.
K E N N E DY CR OTH E R S Pitcher, NY VIRGINIA TECH MAJOR: DAIRY SCIENCE CAREER PATH: DAIRY HERDSMAN AND NUTRITIONIST
Kennedy credits her eagerness for hands-on learning and decision making to her dairy farm upbringing. That’s why she plans a career in the dairy industry.
N OA H E I S E N H A R DT Montgomery, NY PAUL SMITH’S COLLEGE MAJOR: FORESTRY TECHNOLOGY CAREER PATH: LOGGING OPERATIONS
With the goal of responsible timber management, Noah plans to operate his own logging business.
J AM E S H I C K S Rhinebeck, NY SUNY POLYTECHNIC INSTITUTE MAJOR: MECHANICAL ENGINEER CAREER PATH: AG MECHANICAL ENGINEER
At an early age, James found himself modifying agricultural equipment to make it better suited for its task. This problem solving inspired him to pursue a career to innovate and improve ag equipment.
KYL I E L E H R Canastota, NY CORNELL UNIVERSITY MAJOR: ANIMAL SCIENCE CAREER PATH: DAIRY AGRIBUSINESS
Kylie hopes to contribute to the agricultural industry by finding a career in a supportive role for production agriculture farmers.
LA R I S SA L I
AN N A S P OTH
Fresh Meadows, NY
Clarence Center, NY
DELAWARE VALLEY UNIVERSITY MAJOR: HORTICULTURE CAREER PATH: AGRICULTURAL EDUCATION AND HORTICULTURE
CORNELL UNIVERSITY MAJOR: ANIMAL SCIENCE CAREER PATH: LARGE ANIMAL VETERINARIAN
Larissa plans a career as an agricultural teacher, demonstrating the significance of horticulture to our society.
Via research, field experience and her coursework, Anna plans to build a well-rounded skillset that will enable a successful career as a large animal veterinarian.
E M I LY S TA R C E K S I
R I LE I G H M U M B U LO Edmeston, NY
Sherman, NY
SUNY MORRISVILLE MAJOR: AGRICULTURAL ENGINEERING TECHNOLOGY CAREER PATH: DAIRY FARM OWNER/MANAGER
CORNELL UNIVERSITY MAJOR: ANIMAL SCIENCE CAREER PATH: FARM OWNER/MANAGER
With a well-rounded education and hands-on internships, Rileigh hopes to diversify her family’s eighth-generation dairy farm to include farm-to-table and agritourism.
Growing up actively involved on a dairy farm, Emily knew she was destined for a career in agriculture. She plans a hands-on career working with dairy cattle.
E L E N A S UAR E Z
A LE X I S PAYN E Glenfield, NY
Nassau, NY
SUNY COBLESKILL MAJOR: ANIMAL SCIENCE CAREER PATH: DAIRY NUTRITIONIST
CORNELL UNIVERSITY MAJOR: PLANT SCIENCE CAREER PATH: PLANT BREEDER
Alexis credits her exposure and involvement with agriculture in the classroom and FFA to her desire for a career in the dairy industry.
With her desire for a career in agricultural science, Elena hopes to develop the nutritional value of specialty crops to make them more affordable for both farmers and consumers.
CH E Y E N N E R I B B L E
G AB R I E L L E TAR B OX
Painted Post, NY
Troy, NY
PENN STATE UNIVERSITY MAJOR: ANIMAL SCIENCE CAREER PATH: LARGE ANIMAL VETERINARIAN
Inspired by the challenges that are presented when working with animals, Cheyenne hopes to return home to run a large animal veterinarian practice.
CORNELL UNIVERSITY MAJOR: ANIMAL SCIENCE CAREER PATH: AGRICULTURAL FINANCE
With a goal to preserve the link between agriculture and finance, Gabrielle is eager to start a career in agricultural lending.
M E G AN W I L M OT
A LYS SA R O O R DA Cayuta, NY
Cherry Valley, NY
CORNELL UNIVERSITY MAJOR: AGRICULTURAL EDUCATION CAREER PATH: AGRICULTURAL TEACHER
PENNSYLVANIA STATE UNIVERSITY MAJOR: ANIMAL SCIENCE CAREER PATH: LARGE ANIMAL MEDICINE
Alyssa hopes to encourage the next generation of agriculturalists to embrace the evolving ag industry through her career as an ag educator.
Megan continues to immerse herself in the knowledge and experiences that come her way through research and continued education in her pursuit of a career as a large animal veterinarian.
FARM CREDIT EAST “CHAIR SCHOLARSHIP” RECIPIENT Upon a second tier, in-depth review of the applications by Farm Credit East’s Board Chair, Farm Credit East provided an additional $1,500 scholarship to a student committed to a career in production agriculture. The Chair Scholarship is in addition to the $1,500 Farm Credit East scholarship. L AN E M O I R Woodland, Maine UNIVERSITY OF MAINE MAJOR: ENVIRONMENTAL SCIENCE AND SUSTAINABLE AGRICULTURE CAREER PATH: POTATO/GRAIN FARM OWNER/MANAGER
Lane, a fourth-generation farmer, plans to return to his family’s operation after graduation. He hopes his degree will support the changing industry demands in business and conservation.
TO BE A CANDIDATE FOR A 2020 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 A V A I L A B L E I N J A N U A R Y 2 0 2 0
SUMMER 2019
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FINANCIAL PARTNER is for the customers, employees and friends of Farm Credit East. Farm Credit East is a customerowned 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 and financial services provider 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 Matuszewski, Editor, Farm Credit East, 240 South Road, Enfield, CT 06082-4451 CALL: 860.741.4380 E-MAIL: kristie.matuszewski@farmcrediteast.com ©2019 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.
2020
AGRICULTURAL VIEWS CALENDAR PHOTO CONTEST Help us fill Farm Credit East’s Agricultural Views 2020 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 2020 Calendar and also earn you a $100 cash prize! • 14 photos will be selected for a $100 cash prize each. • Submission deadline: July 31, 2019. NEED CREATIVE INSPIRATION? VISIT FA R M C R E D I T E A S T. C O M / C A L E N D A R
UPLOAD YOUR BEST SHOTS TO OUR WEBSITE BY JULY 31 FOR YOUR CHANCE TO WIN A $100 CASH PRIZE 20
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