B
U
S
IN
ES S
IN
S
IG
H
TS
FO
R
H
IG
S
H
ER
Y
IE
LD
FIN PA ANC RT IA NE L R
FarmCreditEast.com
FROM FIELD TO
BOARDROOM THE VALUE LEADERSHIP BRINGS TO YOUR BUSINESS AND THE INDUSTRY
FALL 2019
INSIDE
2 | News & Views
9 | Director Election Process
16 | Photo Calendar Contest
3 | CEO Column
10 | Tax Planning
17 | FarmStart 300th Investment
4 | Cover Story
12 | Urban Ag
18 | Public Policy Update
N EW &V IEW S S
FarmCreditEast.com
Farm Credit East’s Customer Assistance Program FFA Student Scholarship As part of Farm Credit East’s commitment to supporting the next generation of agriculture, commercial fishing and forest products industry leaders, we offer a scholarship for students involved in The National FFA Organization to support their Supervised Agricultural Experience (SAE) or educational opportunities within the agriculture, commercial fishing or forest products industries. Qualified students should 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 awarded each cycle.
As a customer-owned cooperative, Farm Credit East is committed to providing the services and resources that our members need. That is why we offer a customer assistance program at no cost to you. Farm Credit East customers, employees and family members may access the services of ESI Group by calling 800-252-4555. This service, the same that is available to Farm Credit East employees, has a wide range of HR, legal, financial and personal wellness resources available. To use this complimentary and confidential service, just indicate that you are a Farm Credit East customer. Learn more: FarmCreditEast.com/CAP
Careers with Impact If you’re looking for more than a job – something you can truly commit to, believe in and feel good about – Farm Credit East is the career choice for you. When you join Farm Credit East, you have the opportunity to provide impactful financial, business and risk management solutions to farmers, foresters, fishermen, agricultural business owners and rural property owners across the northeast. Both full-time and internship opportunities available. We’d love to get the conversation started. Learn more: FarmCreditEast.com/Careers
Apply: FarmCreditEast.com/FFA Deadline: December 31, 2019
Winter Webinars This winter, Farm Credit East will offer a series of free informational webinars on various topics to help producers plan for the year ahead. Finance Basics and Access to Credit for Beginning Farmers December 18, 2019 Dairy Economic Outlook January 15, 2020 2020 U.S. Economic Outlook March 18, 2020 Visit FarmCreditEast.com/webinars for more information or to register to attend one of these information sessions.
2
FINANCIAL PARTNER
THANK YOU
CEO’s MESSAGE
Bill Lipinski, CEO, Farm Credit East
As I step down as Farm Credit East CEO on December 31, this column is bittersweet. It has been an honor to lead our cooperative in serving the hardworking farmers, commercial fishermen and forest products producers across the region for the past 25 years. So in my final column I’d like to reflect and say thank you to everyone who made it possible and helped me along the way. First, I’d like to thank the employees
century, and because of that, Farm
with entrepreneurs who are new to
I have had the privilege of working with
Credit East has had to adapt as well. I
agriculture. They bring a unique
throughout my career. I’ve been fortunate
continue to be amazed and inspired by
energy to carry existing businesses
to surround myself with a talented and
the resilience and innovative spirit of
forward or embark on new ventures
dedicated team who followed my lead,
our members, and I’m pleased to have
that take advantage of the Northeast’s
but also helped guide me. One of the
led an organization that shares those
dynamic marketplace.
most rewarding aspects of being a leader
same characteristics.
is seeing the people you hired develop and become leaders themselves. I know the cooperative is in good hands with the team that is in place going forward. Having such a high performing team wouldn’t be possible without the support of the board of directors. From the board that chose me to lead this organization in 1994 as well as those that have allowed me to continue leading it since, I am grateful for the opportunity and for your commitment to providing all of us the resources we need to be successful. Finally, and most of all, I want to
I hope many of you had the chance
“
to meet incoming CEO Mike Reynolds at the fall customer appreciation meetings.
I know the cooperative is in good hands with the team that is in place going forward.
”
Northeast agricultural industries
In his nearly 30 years of service at Farm Credit East, Mike has distinguished himself as a strategic thinker and talented leader. The board and I are confident he will do an outstanding job leading the Farm Credit East team, and I know you’ll enjoy getting to know him in the years to come. I deeply appreciate all the good wishes I have received these last few months. Many of you have asked what’s next for me. Other than spending more
thank Farm Credit East’s customers. I am
have certainly faced challenges, but I
time with my wife Alicia and our four
thankful for your confidence in allowing
remain optimistic, precisely because of
children and seven grandchildren,
Farm Credit East to be your capital and
what I’ve observed over these last 25
my current focus is assisting Mike in
financial services provider of choice.
years. Producers have found ways to
transitioning to his new role. I also hope
Our cooperative would not be as strong
adapt through technology, production
I’ll have more opportunity to reconnect
as it is today without your continued
practices, marketing approaches,
with the many friends I’ve made during
partnership. It has been gratifying to
diversification, or some combination of
my Farm Credit career, and find some
work with generations of families to
those strategies. That ability to adapt and
other ways to contribute to the success
achieve their business goals.
grow, and at times endure, is what gives
of Northeast agriculture as I’ve had the
me confidence for the future.
privilege of doing these last 25 years.
Northeast agriculture, forest products and commercial fishing have undergone many changes over this last quarter
I also see a talented next generation returning to farm businesses along FALL 2019
3
FROM FIELD TO
BOARDROOM THE VALUE LEADERSHIP BRINGS TO YOUR BUSINESS AND THE INDUSTRY
Balancing leadership roles with the daily grind of managing your business is no small feat. It takes organization, delegation and a strong support team back home. But the skills, insight and connections gained from taking on leadership roles can be invaluable to both you and your business, while at the same time providing important service to the industry. We recently interviewed five industry leaders who have served in leadership roles throughout their careers and, in the process, also developed their business acumen and strengthened their businesses. Learn how they balanced managing their businesses with time away from their operations to serve on industry boards, committees and in other leadership positions, along with the insights they gleaned from those experiences to benefit their operations as well as the organizations they served. 4
FINANCIAL PARTNER
C O V E R
S T O R Y
PASSION TO LEAD “I swore I’d never get involved, but I haven’t regretted it for a moment since!” joked Ed Overdevest, a southern New Jersey nurseryman who has held leadership positions in numerous organizations such as his local economic development committee and planning board, the New Jersey State Board of Agriculture and the New Jersey Nursery and Landscape Association. So why did Ed and the others we spoke with make that commitment? As Ed went on to explain, “I always thought that I had an obligation to give back to the community and to the industry. And in the course of giving back, I gained even more in return.” Maureen Torrey Marshall, a western New York vegetable, dairy and grain farmer has served in various capacities, including town council, a local college board of trustees, New York Federal Reserve Board, USDA Fruit and Vegetable Committee, Chair of United Fresh Fruit and Vegetable Association, and as a current director of the National Council of Agricultural Employers. She emphasized the importance of getting involved to educate those who are not involved in the industry. “Agricultural producers are less than one percent of the population today, and with so many generations removed from the farm, we need to educate people on our industry and why we do the things that we do,” she commented. “No one can tell our story as well as we can tell it ourselves — and bring passion to it. I get excited when I help shape a more positive or better understanding of the industry.” This type of advocacy is important for any industry, but especially agriculture. “Otherwise, when it comes to other interests beyond agriculture, if we’re not at the table, we’re going to get overlooked and overrun, and that certainly doesn’t serve our industry well,” added Ed. Organizations provide the industry with a collective voice. It’s not just one person or one operation advocating for something — it’s an entire industry. That holds a lot more power. “It’s our industry, so it’s our responsibility to work together to make things better,” said Lorraine Merrill, a New Hampshire dairy farmer who has been involved since her 4-H years. In fact, she commented that she’s carried the 4-H motto, “To make the best better,” with her throughout her career. Over the years, Lorraine has served in a variety of positions including the University of New Hampshire’s Dean’s Advisory Council, the New Hampshire University System Board of Trustees, USDA’s Sustainable Agriculture Research and Education (SARE) program, FSA state committee chair, and most recently as the New Hampshire Commissioner of Agriculture. Matt Beaton, a fifth-generation cranberry grower from southeastern Massachusetts who has been involved for the past 31 years, including on the Cape Cod Cranberry Growers Association Board, as Farm Credit East Board Chair and was most recently elected to the Ocean Spray Board of Directors, expressed a similar sentiment. “I was raised that instead of complaining about something, do something about it,” he said. “Not that I had many complaints, but farming is our identity. I’m a farmer as much as I’m a husband and a father, and I don’t want to be that last generation. “We have skin in the game,” Matt continued. “It’s important to participate, contribute and lead to represent your community, yourself and your own farm to make sure that you’re leaving the industry in a good place for that next generation.” FALL 2019
5
A BALANCING ACT Taking time away from your operation is easier said than done. Agriculture is a living and breathing operation — the cows still have to be milked and the crops cared for and harvested — so day-to-day tasks can’t be put on hold for a few days, or even just a few hours. “You just have to work harder and get it done!” joked David Fisher, a northern New York dairy farmer who has been involved in a variety of roles from town council and local Farm Bureau to the Northeast Dairy Producers Association and is now New York Farm Bureau president. He went on to explain that the biggest part of volunteering his time has been the support of his family and business partners, and also balancing his involvement with each stage of his life — timing is everything. “I did a lot when I was younger,” he said. “Then when we started having children, I cut back from activities that required travel and became more involved in local things like the town board and soil and water council. Now that my children are older, I’ve gotten more involved with things like Farm Bureau at the state level.” Maureen agreed. “It’s important to balance involvement with your family before the business,” she said. “I jokingly tell people that leadership is my hobby, so my involvement has fueled my passion and helped me build a fantastic network. But, I wouldn’t have been able to do it without my family understanding and supporting these pursuits.” When Matt first got involved, he had three toddlers at home, so balancing managing his business with family and time away was challenging. He took the route of investing in the training of key employees and empowering them to make decisions when he’s away. “Quite frankly, my business probably runs a little better when I’m not there because everyone really steps up,” he remarked. “Training and communication are key pieces to make it work.” However, that delegation doesn’t always come easy. David noted that one of his 6
FINANCIAL PARTNER
biggest learning curves has been delegating
that time away to get exposed to those off-
enough to make sure things go as planned
farm organizations and activities can also
when he’s away. Having confidence in
contribute to fresh thinking and new ideas
employees’ skills is equally important to
that you can then bring back to
successful delegation.
the operation.
“Technology also helps to bridge that
“It’s a decision-making process,” she
gap so that I can stay in touch when I’m
continued. “You can’t do everything, so
removed from the area,” added Ed. Travel is
you need to prioritize what you want to
no longer as difficult as it was 10-to-15 years
be involved in and make sure the timing is
ago because you can now have your tools
right, both personally and professionally.”
at the tip of your fingers, regardless of your physical location. “But it’s still a challenge, especially
THE RETURN ON INVOLVEMENT While getting involved may take your
in today’s farm economy with limited
attention away from your business for a
workforce and tight margins,” noted
time, those we interviewed could not stress
Lorraine. “The conundrum is that taking
enough that it also benefits your business,
Being a part of those discussions helps you learn strategies to overcome conflict and possibly learn a new way of doing something, which may ultimately help the business or the community.” Another potential benefit is exposure to different industries. “I went into this with a focused view on cranberries. Opening my eyes to how other industries operate has been one of the most beneficial gains for me,” said Matt. “It’s also allowed me to take more risks,” he continued. “It’s easy to get bogged down in one year, but understanding how others operate, their successes and failures, has allowed me to be comfortable betting on my ability to farm over time, not just in one year that weather or labor may be a particular challenge.” Lorraine stressed that getting involved helped her better understand how different organizations operate. For example, her involvement with the U.S. Department of Agriculture helped take the mystery out of the government entity. It also helped her build connections. “It’s helpful to have that basic understanding of how different organizations work and know some of the people involved so that you can help bring them together in a positive way. My partners have also all been involved in offfarm activities, and that exposure has been invaluable for our farm business,” she said. Just as much as producers benefit from the connections they make, agencies and and also your professional development and management skills over the long term. Collaboration is one of those benefits.
Skills for managing employees can also be gleaned. “I quickly learned how important organizational culture is to long-
“A lot of us started out as smaller companies
term success,” said Matt. “This led me to
and, while growing those companies, were
work more closely with my employees one-
more focused on our individual business
on-one because everyone has a different
activity,” said Ed.
viewpoint. Every business’s discipline is
“But getting out and serving in a
challenged at some point, so by building
variety of roles, working with other people
relationships and understanding people and
and hearing their different viewpoints,
their point-of-view, you can build better
then merging those together to develop
consensus to strategically move forward.”
consensus — those are key collaborative
David seconded that mindset. “If you’re
experiences that have given me a much
going to get involved, you need to enjoy
broader business perspective which, in
challenges — and some of those challenges
turn, has led to a number of strategic
may seem insurmountable, but there are
business opportunities,” Ed continued.
various ways to work through things.
government entities equally benefit from producer involvement. It’s a two-way street — organizations need producers’ input and leadership as much as producers need organizations to advocate on their behalf or set effective policies and regulations. There’s also the networking aspect. “By attending various meetings and events, you learn about things coming down the pike that you might not be fully aware of yet but that are going to affect your business. With this insight, you can better prepare your business to manage it,” said Lorraine. And, you’re always learning! Whether it is collaboration or negotiation skills, or learning a new way of thinking or doing FALL 2019
7
things, involvement makes you a life-long learner and that will
“And when you decide you want to be involved or are
ultimately benefit yourself and your business in the long run.
considering running for an office, you can’t be afraid to lose,
Sometimes, too, it’s just reinforcement that you’re doing
because you might, but at least you put yourself out there. To make
things right. “It’s an opportunity to network with other peers
a difference, you at least have to try,” David added.
who might be doing the same thing in other industries. To
Maureen advised to start small. “Find something that drives
hear that it’s working lets you know you’re on the right track,”
your passion and that you want to learn more about, and don’t be
commented Maureen.
afraid to voice your opinion or suggestion,” she said.
THERE’S NO TIME BETTER THAN THE PRESENT
someone invites you to participate on a committee, you should
“Be open to new experiences,” Lorraine encouraged. “If “I often hear from people that they don’t have anything
seriously consider saying yes, even if you feel like you’re not
to contribute, but anyone who is involved in agriculture has
prepared or don’t have enough experience to contribute. You will
something to contribute, so jump in!” said Maureen. “Nobody
gain confidence as you gain experience.
knows our industry like a working farmer and the knowledge and education that we can share is invaluable.”
“The people in the agricultural community are some of the best people to work with and work for, and it’s been a privilege to be able
Matt agreed. “Don’t hesitate. It’s probably one of the most
to do that,” she continued. “It’s important for young people to get
enriching things I’ve done, personally. It’s made my network of
involved because the decisions being made today will impact the
knowledge that much greater and I’ve developed relationships
future of the industry. Get involved to have a say in your future.”
that will last a lifetime. If I don’t have the answer to something, I
And at the end of the day, it’ll all get done. “I can vouch for
now have so many avenues to put myself in touch with the right
that!” Matt affirmed. “Somebody did it for you and you have to do
person to find those answers. It’s brought so much back to my
it for somebody else. That’s just how agriculture works. You have
own business, and while that’s not why I got involved, it’s one
to set things up for that next generation. Agriculture is a selfless
of the benefits.”
industry, and you’ll be surprised by how much you bring back to
“You have to get involved if you want to make a difference,”
your operation when you do participate.”
said David. “It’s easy to keep your head down and just look at
Ed summed up, “It’s going to benefit others, benefit the industry
what’s going on in the day-to-day on your farm, but so many things
and benefit yourself, so jump in!”
go on beyond our fence rows that affect us. We have to have
MEET OUR
LEADERS
spokespeople and be involved.
8
FINANCIAL PARTNER
ED OVERDEVEST Overdevest Nurseries, LP Bridgeton, NJ
MATT BEATON Sure-Cran Services, Inc. Wareham, Mass.
DAVID FISHER Mapleview Dairy, LLC Madrid, NY
LORRAINE MERRILL Stuart Farm LLC Stratham, NH
MAUREEN TORREY MARSHALL Torrey Farms Inc. Elba, NY
FARM CREDIT EAST
DIRECTOR ELECTION PROCESS As a customer-owned cooperative, Farm Credit East is governed by the same farmers, commercial fishermen and forest products producers that we serve. This means that all voting stockholders receive a ballot to vote for each open seat on our Board of Directors. Additionally, each of those candidates were surfaced, interviewed and selected by our customers — your peers. This group of customers is known as the Farm Credit East Nominating Committee.
Council meets to identify and recommend potential director candidates to the association Nominating Committee. As part of this process, Customer Service Councils also recommend the slate for the following year’s Nominating Committee (both members and alternates), which is then approved by all members present at the association’s Annual Meeting.
While Farm Credit East holds its director elections each spring, this annual process actually begins in the fall with Farm Credit East Customer Service Councils. In conjunction with our customer appreciation meetings, each office’s Customer Service
INTERESTED IN SERVING ON THE NOMINATING COMMITTEE OR BEING CONSIDERED AS A CANDIDATE IN THE 2020 DIRECTOR ELECTIONS? Any customer who owns voting stock is welcome to nominate themselves to be considered for a position on Farm Credit East’s Nominating Committee. If you or someone you know is interested in serving on the 2021 Nominating Committee or have an interest in becoming a candidate in the 2020 election, contact your Customer Service Council representative, your local branch manager or visit FarmCreditEast.com/Elections to learn more.
DIRECTOR SEATS UP FOR ELECTION IN 2020: Eastern Region: One, 4-year seat Central Region: One, 4-year seat Western Region: One, 4-year seat
FALL 2019
9
PLANNING FOR THE TAX CONSEQUENCES OF EVERY BUSINESS DECISION
Nicholas Norton Farm Credit East Tax Specialist Ethan Robertson Farm Credit East Business Consultant
In agriculture, there are a variety of tax laws, deductions and requirements unique to the industry. As a result, when it comes to filing their annual tax return, too often producers face an unexpected tax bill that could have been alleviated — or at least anticipated — had appropriate planning taken place. Whether purchasing a new piece of property, transferring the business to the next generation or changing another aspect of the operation, the tax consequences for every major business decision should be considered. Tax professionals can help businesses get a handle on their tax liability via tax planning, which consists of two components. First, a tax projection provides the projected tax impact for the current year based on the expected financial outcome. The second component identifies and analyzes opportunities. This allows the producer to consider “What if?” scenarios to make proactive decisions that lessen their overall tax burden. This piece is crucial during unusual events such as purchasing the farm next door, leasing a new piece of property or selling livestock. For thorough tax planning, it’s important to look not only at the immediate tax impact of a decision, but also the impact it will have long term. This insight can help producers evaluate major decisions and potentially change their course of action to earn the greatest overall tax benefit. If it’s a business-as-usual year, tax planning is just as important. We often find that producers expecting a loss don’t tax plan because they associate losses with lack of taxes. However, there are many complicating factors for businesses with losses, which could yield an unexpected result. A best practice is to continue to tax plan to manage a loss in the most tax effective manner possible.
10
FINANCIAL PARTNER
You should also keep your checkbook in mind. For capital intensive businesses, a low checkbook balance does not always mean low earnings. For example, taxpayers will rarely get a tax deduction when purchasing land. Therefore, it’s possible for a business to part with large sums of money and still be liable for taxes! In such cases, tax planning can help mitigate taxes and aid in planning for enough capital to meet all obligations. At times, it may be beneficial to enlist the advice of a consultant with an outside perspective. A consultant can work with business managers to consider budgets and projections and give thoughtful advice on whether an intended course of action is in the
TALKS
business’s best interest. Finally, when it comes to a producer’s exit strategy — whether it’s helping prepare a business for its next generation, passing a farm on to new owners or exiting the industry entirely — both tax planning and consulting
LOOKING FOR ADDITIONAL TAX TIPS?
are important. This is one of the benefits of working with Farm Credit East. Our wide network of ag-focused tax and business consultants work together to provide expertise and experience to help producers draft the most beneficial and affordable transition plan for all parties involved. Regardless of the situation, we can’t stress enough the importance of timing. Communicating with your professionals
Visit the “Tax Talks” section of Farm Credit East’s Today’s Harvest blog. Each month, one of our experienced tax specialists releases an article on relevant and timely tax topics. These insightful articles can provide helpful information as producers navigate tax laws and consider their business plans. Recent articles include:
before decisions are made can make all the difference. Additionally, there are a number of tools built into the tax code dependent on timing, and choosing to execute now versus in the future, or vice-versa, can have significant tax consequences. Our advice: As soon as you have an idea for your business, from a routine equipment purchase to a longer-term business transition, it is best to call your tax adviser or consultant for advice. For more information on Farm Credit East’s tax and business consulting services, visit FarmCreditEast.com.
» Do Deathbed Gifts Really Work? » Bonus Depreciation Relief » SECURE Act: Major estate planning changes may be on the horizon » Final Regulations on Itemized Deductions » 199A: The New DPAD, Qualified Business Income and Farm Rental Agreements » Tax Planning Opportunities under the Tax Cuts and Jobs Act Learn more at FarmCreditEast.com/TaxTalks
FALL 2019
11
Tom Cosgrove, Farm Credit East, visits with REC Executive Director Steve Fischer and REC Development Director Ajayi Harris in Worcester, Mass.
CONNECTING URBAN & THE MANY FACETS OF URBAN AGRICULTURE One of the unique aspects of Farm Credit East’s territory is the prevalence of cities throughout the region. While parts of the Northeast are as rural as anywhere in the country, most Northeast farms, forest product and fishing businesses are within a few hours of a major population center. According to the Census Bureau, the Northeast is home to 71 cities each having more than 50,000 residents. This geographic reality presents both challenges and opportunities for Northeast producers. Proximity to urban
Provides urban residents with access to fresh, local food
12
FINANCIAL PARTNER
and suburban areas causes challenges like the high cost and lack of available land, but also provides easy access to fresh farm and fishing products for millions of consumers. Cities and their populations have traditionally been, and still are, important markets for Northeast producers. That is why Farm Credit East supports various organizations working to provide unique opportunities to both residents and producers at the intersection of agriculture and the urban Northeast. Agriculture serves as the catalyst and, in some cases, the classroom for a number of Northeast programs that teach youth
Preserves open space in urban centers
RURAL COMMUNITIES about food production, nutrition and leadership development.
acre, but in addition to food production, they add to the quality
These programs can open the door to a diverse group of young
of life by providing open space, in some cases having reclaimed
people who might not have otherwise had an opportunity to
abandoned lots. Urban farms are also an educational tool,
learn about agriculture.
teaching consumers of all ages who may be many generations
Other programs focus on food access, and that runs in both directions — from providing urban residents access to fresh and
removed from the farm, about how their food is produced. One example of an urban agriculture program working to
nutritious food, while also providing an avenue for Northeast
connect rural and urban communities, while also developing the
farmers and fishermen to serve urban customers.
next generation, is the Regional Environmental Council (REC).
Some programs are even developing methods to produce food right in the city. Many of these urban farms are less than an
Cultivates direct marketing channels
Farm Credit recently supported this program with grants for its YouthGROW program and its farmers’ markets.
Offers educational and leadership development opportunities
Develops urban agricultural production
FALL 2019
13
“
Urban agriculture programs enjoy strong support from policymakers as they serve an important role in bridging the gap between urban and rural communities.
The REC’s YouthGROW program is a year-round youth
”
leadership development and employment program built around
urban agriculture for at-risk teens in Worcester, Mass. In addition to education programming, REC operates farmers’ markets and mobile markets around the city. “The Regional Environmental Council is a transformative institution in Worcester,” said Congressman Jim McGovern. “By fighting for access to fresh, affordable food and creating opportunities for problem solving and youth leadership, they are playing a key role in building a healthier city, while also providing an important marketing channel for local farmers.”
Some other programs that Farm Credit East has supported either directly or through the Farm Credit Northeast AgEnhancement program include: COMMON GROUND – New Haven, Conn. With an environmental education center, a charter high school and an urban farm, Common Ground offers an internship program for city youth to explore farming as a career.
THE FOOD PROJECT – Lincoln, Mass. Operating three farms in the Boston area, the Food Project employs a diverse group of young people who grow food, learn about the food system and develop leadership skills.
GREEN VILLAGE INITIATIVE – Bridgeport, Conn. At its 12 community gardens and the Reservoir Community Farm, this initiative hosts a range of educational, skill building and leadership development programs for members of the community and school children.
GROWNYC – New York City’s Five Boroughs One of the pioneers in providing New York City residents access to local food through its Greenmarkets, GrowNYC also provides other services like recycling, beginning farmer training and nutrition education. 14
FINANCIAL PARTNER
Additionally, GrowNYC has a wholesale division and is in the process of developing a wholesale farmers’ market/ food hub in the Bronx.
KNOX, INC. – Hartford, Conn. This urban incubator farm program provides low-income beginning farmers land and training to help them launch their own farming businesses.
NEW JERSEY AGRICULTURAL SOCIETY – Statewide Since 2002, the New Jersey Agricultural Society’s Learning Through Gardening program has helped create school gardens, many in urban areas, that function as outdoor classrooms to help reach more than 15,000 New Jersey students each year.
ORGANIZATION FOR REFUGEE AND IMMIGRANT SUCCESS (ORIS) – Concord & Manchester, NH Among its programs to help resettlement of immigrants and refugees, ORIS has both a mobile market program and a farmer training program.
Incorporated in 2007 by Susan Pronovost, Brass City Harvest is an urban agriculture program working to provide
eight to nine thousand pounds of food is moved through these channels each week. To further enhance food access, Brass
fresh, healthy food to underserved
City Harvest also hosts a couple of hundred
populations in the city of Waterbury, Conn.,
healthy cooking demonstrations per
with the end goal of getting people to eat
year. These programs target low-income
healthier. A program that began a little over
populations, seniors and elementary
a decade ago with just 12 garden beds has
school children. Earlier this year, the
grown to include about two dozen different
Farm Credit Northeast AgEnhancement
farms, orchards and dairies, that provide
program provided grant funding to extend
developing the business plan for this new
more than 100,000 pounds of food to food
the reach of this nutrition program into
venture, Brass City Harvest worked closely
deserts and low-income communities
more communities.
with a Farm Credit East consultant.
each year. As the aggregator of thousands of
“Capacity is always a challenge in
Brass City Harvest employees Shawn Joseph and Pauline Zembruszki provide fresh produce during a weekly market at Waterbury Hospital.
“The food hub’s goal is to develop value-
the non-profit world,” commented Susan
added products utilizing farm food, thereby
pounds of food, Brass City Harvest has
Pronovost, Brass City Harvest founder.
creating pathways for Connecticut farms to
developed strong relationships with its
“And when you’re trying to reach food
extend their produce into school systems
partner farms, and those relationships have
desert areas that are not covered by large
and institutions,” said Susan. She also noted
proven to be a win-win. The products from
grants, finding that extra money, which
that the facility will meet FDA’s Food Safety
these farms provide fresh, nutritional food
in our case would enable our nutritionist
Modernization Act (FSMA) standards
access and Brass City’s wholesale purchases
to complete the necessary outreach in
and enable enhanced food traceability
are a guaranteed revenue stream for its
cohort with markets, is very difficult. The
and accountability.
Connecticut farm partners.
AgEnhancement grant filled those gaps.”
To then deliver this fresh food to
To add one more channel to the mix,
“This advanced technology will enable area farmers to compete in a larger
communities in need, the program has
Brass City Harvest is in the process of
commercial market and we’re excited
established a variety of avenues, including
finalizing the development of its food hub,
to open the doors of this new facility
150 mobile markets per year. On average,
which is planned to open by year end. In
to further support local farmers and underserved communities,” she added. Susan also noted that she’d be remiss not to mention Brass City Harvest’s synergetic partners. “We’ve developed great partnerships with the City of Waterbury, the state of Connecticut and the Connecticut Department of Agriculture, and without these key players, our field of dreams would be mud,” she said. “I can’t express my gratitude enough to the partners that have made this organization successful.”
FALL 2019
15
FARM CREDIT EAST’S
ANNUAL PHOTO CALENDAR CONTEST Thank you to all who participated in our 2020 Agricultural Views photo calendar contest. We were pleased to receive more than 850 entries this year, representing the beautiful views of the region’s diverse agricultural industries and rural landscapes.
We’d like to extend our congratulations to the talented photographers whose photos were chosen to fill Farm Credit East’s 2020 Agricultural Views calendar. Each winning photo uniquely portrays a love for the Northeast’s agriculture, forest products and commercial fishing industries and the region’s rural communities. We are pleased that your picturesque images will be displayed in homes and offices across the Northeast in the coming year. The Agricultural Views calendar has been a tradition at Farm Credit East for many years. We are impressed each year with the creativity of talented photographers from across the Northeast and know that many of you look forward to receiving your annual calendar. For a copy of the 2020 Agricultural Views calendar, please contact your local Farm Credit East branch office.
With 2020’s calendar complete, we’re already beginning to think about the 2021 calendar! We encourage you to submit your photos from the fields, docks or forests as they’re captured. Whether it be a snowy winter scene or a freshly plowed field ready for planting, machinery during harvest or livestock in its element, submit your photos for a chance to be featured in the 2021 calendar and win a cash prize. We look forward to seeing your submissions.
FARMCREDITEAST.COM/CALENDAR D E A D L I N E : J U LY 3 1 , 2 0 2 0 16
FINANCIAL PARTNER
Jorge Marzuca, owner of Whitemarz Farm in Lunenburg, Mass., pictured with his FarmStart Advisor Samantha Stoddard. Jorge utilized his FarmStart investment to purchase a plastic mulch layer and equipment to assist with weeding so that he has more time to focus on other aspects of his business.
FarmStart Invests in 300 th Beginning Farmer Business Whitemarz Farm
Jorge Marzuca has been involved in
Stoddard commented, “Working with Jorge has
agriculture since he was a child on his father’s
been a great experience. He is very focused
broccoli farm in Mexico. He attended high school
on his business plan and eager to expand
in the greater Boston area and then returned
his operation.”
to Mexico. Recently, Jorge moved to the U.S. to
Since obtaining a FarmStart investment,
begin his own vegetable operation, Whitemarz
Jorge has been able to purchase a plastic
Farm, in Lunenburg, Mass.
mulch layer and equipment for his tractor to
“We grow over 40 different vegetable varieties
assist with weeding. “We used to spend too
that we sell at multiple farmers’ markets,” said
much time weeding,” said Jorge. With his new
Jorge. Whitemarz Farm also offers a Community
equipment, he now has more time to focus on
Supported Agriculture program, or CSA, for
other important aspects of his business, such as
members of the community to purchase part
marketing and harvest.
of the harvest in advance of the growing
Sam is hopeful for the future of Jorge’s
season. Currently, the farm’s CSA has about
business. “With FarmStart support, Jorge hopes
40 participants.
to improve the irrigation to more consistently
“We are a family operated farm, and my wife
grow his crops, as well as utilizing his new
and I are the only full-time workers,” said Jorge.
mulch layer to improve efficiency at the farm,”
They were in need of a loan, but struggled to
she said.
obtain financing through traditional lines of credit because of their lack of production history. When Jorge moved to Massachusetts
FarmStart, LLP is a joint initiative of Farm Credit East, Yankee Farm Credit and CoBank to fulfill Farm Credit’s long-term commitment to
three years ago, he enrolled in the New Entry
support a vibrant, entrepreneurial Northeast
Sustainable Farming Project, an initiative of
agricultural community. The program invests
Tufts University’s Friedman School of Nutrition
working capital of up to $75,000 to help
Science and Policy. “The program had a course
beginning Northeast farm, forest products and
about obtaining financing, and one of the first
commercial fishing businesses and cooperatives
programs mentioned was FarmStart,” said Jorge.
become operational. Since the first investment
“It was very easy to apply and a fast process to
approved in August 2006, FarmStart has invested
get financing.”
more than $14 million with over 300 agricultural,
In addition to the investment, a FarmStart advisor works with each participant to help the new business stay on track toward achieving its objectives. Jorge’s FarmStart adviser Sam
timber and fishing entrepreneurs throughout the Northeast. For more information on FarmStart, please visit FarmCreditEast.com/FarmStart.
FALL 2018
17
WASHINGTON Update Tom Cosgrove Senior Vice President for Public Affairs
Beyond the Headlines There’s been no shortage of political
Senate. It will take time to complete work
headlines this fall — many of them written
on government funding for the current
in a large, bold font.
fiscal year. As a result, one or more short-
activity related to agricultural labor
term spending bills will be required in the
this Congress, however, a bipartisan
interim.
agricultural labor bill was introduced in
With a Presidential election on the horizon in 2020, a healthy contingent of Democrats are still vying for their party’s nomination while the House of Representatives has started impeachment
There had been little legislative
late October called the Farm Workforce TRADE The U.S.-China trade dispute has
Modernization Act. The result of several months of negotiations involving
proceedings against the President.
been garnering headlines, but another
members of Congress, agricultural
Coverage related to these two stories,
important trade issue is the pending
employers and farmworker groups, the
along with foreign policy developments
approval of USMCA. Agreed to in late 2018,
bill addresses three main areas: the
in Syria, have been taking up most of the
USMCA is intended to replace the North
status of existing workers, changes to the
news media’s bandwidth this season.
American Free Trade Agreement (NAFTA)
H-2A visa program, and phasing in the
If you look beyond the headlines,
and needs approval of all three countries’
use of the E-verify system for employers
however, there are some other significant
legislatures to take effect. Thus far, only
to check the immigration status of
policy issues pending. The question is
Mexico has approved it.
workers. The bill appears to be a very
if the major political stories will result
While House Democrats have
good starting point, though as with any
in delay or progress on other issues like
concerns with several key parts of the
legislation on this issue, the path forward
funding for the federal government, the
agreement, negotiations between the
is uncertain.
U.S.-Mexico-Canada Agreement (USMCA)
House of Representatives and U.S. Trade
and agricultural labor.
Representative Robert Lighthizer to
item of certainty is that the national
address these issues are ongoing. Most
political battles will continue to grab the
agricultural organizations, including
headlines. While those battles continue
GOVERNMENT FUNDING Funding for the federal government
As we close out 2019, the only
Farm Credit East and our national trade
to rage, the real question is whether
seems to be a perennial issue. While
association, the Farm Credit Council,
Congress and the Administration can
it appears neither Congress nor the
support the agreement, hoping it
make progress on some of the other
Administration has the appetite for a
will bring some certainty to the trade
issues that are important to Farm Credit
government shutdown, as of this writing
relationships with the U.S.’ two most
East members.
only 10 of the 12 annual funding bills had
important export customers.
passed the House and four had passed the
18
LABOR
FINANCIAL PARTNER
FA R M C R E DI T PA I N T S THE NATION’S CA PITOL GR EEN ! While we may not have literally painted the Capitol green, if you were on Capitol Hill this past July, you wouldn’t have missed the hundreds of green totes and badges roaming the halls of Congress on July 24 when more than 700 farmers and ranchers traveled to Washington, D.C., for the bi-annual Farm Credit Fly-In. This two-day national event consisted of hundreds of legislative visits made by Farm Credit System customers and leadership, along with a farmers’ market held in the Library of Congress for Congressional staff to sample agricultural products from across the country. Farm Credit East’s group of 33 people, including
At the Farm Credit Marketplace, Farm Credit East
the board of directors and staff, met with 30 members
was pleased to feature four Northeast agricultural
of Congress and/or their staff during the event. With
products including, beef sticks from Wilson Beef Farm
many new Northeast Congressional members, these
in Canaseraga, N.Y.; Maine potato chips produced by
visits play an important role in informing them about
Fox Family Potato Chips using potatoes from Double
Farm Credit’s mission to support rural communities
G Farms, in Blaine, Maine; Pinot Gris Wine from Jones
and agriculture. They’re also an opportunity to update
Family Farms, in Shelton, Conn.; and Allagash beer
lawmakers on the farm economy and issues impacting
produced using malted barley from Buck Farms/Maine
producers, such as ag labor, sustained low commodity
Malt House in Mapleton, Maine.
prices and weather challenges.
Maine Senator Collins
Representative Malinowski (NJ-7)
Representative McGovern (MA-2)
Representative Katko (NY-24)
Connecticut Senator Murphy
Representative Stefanik (NY-21) FALL 2019
19
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 dedicated to the growth and prosperity of agriculture.
Farm Credit East 240 South Road Enfield, CT 06082-4451 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: Kristie 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.
May the holiday season bring only happiness and joy to you and your loved ones!
PRSRT STD U.S. Postage PAID Permit No. 690 Springfield, MA