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FIN PA ANC RT IA NE L R S U M M E R 2 02 0
2 | News & Views
13 | Farm Credit East Cares
16 | Public Policy Update
INSIDE
3 | CEO Column
14 | New Normal For Now
17 | Scholarship Recipients
4 | Cover Story
15 | Value of Ownership
N E & W V IE S WS Farm Fresh Guide Despite the COVID-19 pandemic, Northeast agricultural producers are still working hard to supply farm fresh food and other products to their local communities. With local farm products in abundance this time of year, we encourage you to continue to support your local farmers, fishermen and forest products producers. For a listing of where to find farm fresh products throughout the seven states Farm Credit East serves, visit FarmCreditEast.com/FarmFreshGuide
Welcome New Board Member In April, customer-members elected one new director to the Farm Credit East Board. Barry Buck, of Mapleton, Maine, was elected to a four-year term. Barry is co-owner and cooperatively manages crop production, marketing and sales at Buck Farms, a 1,000-acre cash crop and potato farm. In other regions, Doug Shelmidine, general and financial manager of Sheland Farms LLC in Adams, N.Y., was reelected to a four-year term. David “Skip” Hardie, retiring senior partner of Walnut Ridge Dairy, LLC, in Groton, N.Y., was also reelected to a four-year term. Congratulations to the winning candidates, and thank you to customer-members for voting and to our nominating committee for providing an excellent slate of candidates.
COVID-19 Resource Hub Throughout the COVID-19 pandemic, Farm Credit East has aimed to provide producers with up-to-date information and resources regarding the pandemic’s impact on their businesses. This includes information on the Paycheck Protection Program and the related loan forgiveness as well as other programs such as the Economic Injury Disaster Loans. We also provide regular tax law and payroll updates along with information on USDA direct payments. We’ll continue to update these resources as more information becomes available. Visit FarmCreditEast.com/ResourceHub to learn more.
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FINANCIAL PARTNER
Introducing New Board Leadership At the Board of Directors’ April 28 reorganization meeting, the Board elected Laurie Griffen, of Stillwater, N.Y., as its Chair and John Knopf, of Canandaigua, N.Y., as Vice Chair. Laurie has been on the board since 2011. Together with her husband Steve, they own and operate Saratoga Sod Farm, Inc., a 600-acre turfgrass farm in Stillwater, N.Y., providing installation services as well as seed and fertilizer. Saratoga Sod also grows roughly 500 acres of soybeans, corn and barley as part of the crop rotation. On the board since 2013, John is the principal owner of Fa-Ba Farms, LLC in Canandaigua, N.Y. Fa-Ba Farms is a dairy business consisting of 500 milking cows, 440 replacements and 850 acres of land devoted to forage production. For more information on Farm Credit East’s Board of Directors, visit FarmCreditEast.com/Board. Pictured on the front cover are staff from 11 of Farm Credit East’s 20 offices saluting the Northeast’s essential agricultural producers who have continued working through the pandemic. See the cover story on page four to read a few producers’ stories of creativity and commitment to their communities.
CEO’s MESSAGE
“
It has been an adjustment, but I’ve appreciated how the team has adapted, persevered and continued to serve customers.
” PASSING THE TEST WITH
RESILIENCE Mike Reynolds, CEO, Farm Credit East The last several months have tested us
adaptability and resilience of our members
contact. We have too. We’ve started to bring
all. When the COVID-19 pandemic escalated
in the face of adversity. On behalf of the
our team back to our offices, have resumed
in March, nobody could have predicted the
entire Farm Credit East team, we salute you.
farm visits and are developing plans to allow
scale and scope of its impact as schools,
I’ve seen the same resilience among
customers to come to our offices. As with
businesses and many parts of the economy
our Farm Credit East team. In March, with
the resumption of most activities, there
and society began to shut down.
just a few days’ notice, about 80% of our
will be limitations as we continue taking
But like health care workers, first
team began working from home, many
appropriate precautions for the safety of our
responders and other essential personnel,
while caring for elders or young ones, or
staff and customers.
the men and women in agriculture, forest
homeschooling their children. It has been
products and fishing were on the front lines,
an adjustment, but I’ve appreciated how the
to ensuring Farm Credit East remains your
working to provide the food, fiber and other
team has adapted, persevered and continued
reliable financial partner in good times and
products our communities rely on.
to serve customers.
bad. This year has certainly put that to the
While adjusting operations to keep
One of the highlights of this issue is
Your board of directors is committed
test. We’re pleased that we have been able
themselves, their families and employees
recognizing our 32 scholarship winners
to match the Federal Reserve’s interest rate
healthy and safe has been a challenge
who are planning careers in food and
movements and lowered variable rates by
unto itself, we know many customers are
agriculture, forestry, fishing, or a related
1.5% since April. We’ve also provided an
also facing financial strain. We want to
field. It’s encouraging to learn about their
advance on 2020 patronage to provide some
assure you that Farm Credit East’s financial
goals, and although they’re pursuing higher
additional cash flow this summer. We have a
strength allows us the capacity and
education at a difficult time, they’re moving
range of products, services and expertise to
flexibility to work through each customer’s
ahead with their plans and inspire us to
support your business, so please contact us
situation on a case-by-case basis to arrive at
do the same. The optimism of this next
to find out how we can help.
the best possible outcome.
generation gives me confidence for the
Despite the challenges of the last few months, I’ve been inspired by our
It’s too early to declare victory over the
future and we’re proud to support their
pandemic, but we certainly haven’t been
educational endeavors.
defeated. We’ve passed the first test, and
customers’ response. In this issue of
It appears we’ve emerged from the
Financial Partner, you’ll read some
worst of the pandemic and we look forward
Farm Credit East team and the talented next
compelling stories about how Farm
to returning to normal business operations,
generation, I’m confident we’ll pass any
Credit East customers have adapted their
but it will take time. As a lender and
tests yet to come.
operations, helped their neighbors and
financial services provider whose business
continued to serve their communities in
is built on long-term relationships, we know
a variety of creative ways. It shows the
many of you have missed that in-person
with the resilience of our customers, the
SUMMER 2020
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NORTHEAST AGRICULTURE
4
FINANCIAL PARTNER
SALUTE
A SALUTE TO PRODUCERS’ CREATIVITY, ADAPTABILITY AND COMMITMENT TO LOCAL COMMUNITIES IN A TIME OF CRISIS
NORTHEAST AGRICULTURAL PRODUCERS ARE NO STRANGERS TO CHALLENGE. BUT AS THE CORONAVIRUS PANDEMIC SWEPT THE NATION — JUST AS THE BUSY GROWING SEASON WAS KICKING OFF — PRODUCERS HAD TO QUICKLY ADAPT AND ADJUST THEIR OPERATIONS FOR DISRUPTIONS NEVER BEFORE EXPERIENCED. Many operations lost their markets. Some were considered nonessential based on their product and had to close their doors for an indefinite period. Others had to adjust their business to be able to operate within new social distancing guidelines. However, one bright side during this time of crisis is that “Buy Local” and “Know your Farmer” took on new meaning as consumers looked to source their food from local producers and sought to stay connected. Northeast producers rose to the occasion. Their creativity and compassion have been witnessed across the region over these last few months. From donations of farm fresh products to help those in need, to adjusting marketing channels and business operations to stay connected to consumers, and even the production of essential products to keep the community safe, Northeast producers’ efforts have been inspiring. We interviewed a dozen producers across the region who have adjusted their businesses to continue supporting local communities through the pandemic. The following stories are just a sample of the adaptability and compassion of the region’s producers. To all Northeast producers who are doing the same, we salute you. Thank you for continuing to be on the front lines, providing your communities with fresh, local food and fiber products.
SUMMER 2020
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ADAPTING OPERATIONS FOR A NEW BUSINESS ENVIRONMENT Most ag businesses were deemed essential during the pandemic, so they were permitted to remain open. However, it wasn’t business as usual.
store or merging it with a CSA pickup. “Diversification is the key to survival in ag,” he said. Another Northeast business diversifying their offerings was Liberty Vineyards & Winery, in Sheridan, NY. As a farm winery, it was able
Russo’s Fruit and Vegetable Farm in Tabernacle, NJ, was one of those
to remain open, but similar to Russo’s, was limited to online sales or
farm businesses that remained open with significant adjustments
curbside pickup. However, maintaining the social aspect of their business
to operations to maintain the health and safety of their employees
was no small task when the name of the game is “social distancing.”
and customers. They opened a week earlier than planned with new options to purchase their products, including online sales, curbside pickup, and delivery to the elderly and those with medical hardships.
“Early on, we were contacted by a food vendor looking for a location for pop-up barbecue, serving food to take home,” said owner Pam Burmaster. “It was the perfect opportunity to offer our customers
Initially, the farm had an influx of customers with over 150 pickups
and the community a place to safely drive through and pick up food
per day. After the first few weeks, owner Anthony Russo IV said
and wine for them to take home and enjoy.”
demand decreased but remained steady. Their greenhouse has also opened with social distancing and directional signage, mandatory face masks, and reduced customer capacity. “Being proactive was important to us,” said Anthony. “I believe we’ve been successful during the pandemic because we didn’t wait to see what everyone else was doing before opening.” He also acknowledges the help of high-school staff in their success. “They’ve been a huge help putting together online orders and deliveries,” he said. “We’re appreciative of their willingness to work after their online schoolwork was finished.”
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Looking forward, Anthony is considering maintaining the online
FINANCIAL PARTNER
From that day forward, every Wednesday became “Wine & Dine Drive Thru Wednesday.” The winery brought in different food vendors each week, promoting that week’s cuisine through social media and emails to customers. “We received many compliments from the community,” continued Pam. “It’s not only a good way to support local businesses, but also an opportunity to get out of the house and enjoy an activity in a safe manner.”
SALUTE Farm Credit East staff thank the hardworking families and agricultural businesses we work with across the region for your strength, innovation and commitment to your communities throughout the pandemic. It’s an honor to be your trusted partner.
FINDING CREATIVE WAYS TO ENGAGE CUSTOMERS As the country shut down, many people struggled with the lack of human interaction. Ag retail and winery businesses depend on interpersonal contact, so some businesses thought outside the box to engage customers in new ways. Garth Ellms of Ellms Family Farm in Ballston Spa, NY, said their simple idea to keep the doors open led to a series of activities to engage customers. They started with drive-thru apple cider donuts and a farm experience. Customers could order donuts by the dozen online, then pick them up at the farm. As they exited, they drove through 1.5 miles
“The first weekend we sold out. We counted about 2,200 cars that came through the farm,” said Garth. After that first weekend, they added a scavenger hunt component so that customers had something to do while driving through the farm to exit. Additionally, for three weekends, they added a nightly fireworks show to their lineup. They estimated about 900 cars per night showed up for the displays. “It was nice to give back to the community during a different season,” said Garth, as they typically don’t open this early in the spring. “People were glad to be out of their homes, doing something fun and worthwhile from the safety of their vehicles.”
of the 250-acre farm.
SUMMER 2020
7
Silver Thread Vineyard in Lodi, NY, also thought creatively to engage customers. A large part of their business is their tasting room and wine tasting classes, so co-owners Shannon and Paul Brock decided to start a weekly virtual wine tasting. They let customers know in advance which wine variety they’ll feature in that week’s virtual tasting. Viewers can then either buy directly from Silver Thread Winery or buy a similar selection from a wine shop or another local winery. “Making it public has been important to us,” said Shannon. “We always try to make wine approachable and fun, so we wanted people to have access to our classes even if they aren’t drinking our wine.” Beyond the pandemic, Silver Thread plans to continue their online tasting sessions, but with a bit less frequency. “We want to continue to give those folks who prefer the virtual format, or for those who don’t get to visit the Finger Lakes often, an option to still be a part of our vineyard community,” said Shannon.
PIVOTING PRODUCTION TO KEEP THE COMMUNITY SAFE Demand for hand sanitizer skyrocketed as the pandemic escalated. In response, the Alcohol and Tobacco Tax and Trade Bureau (TTB) revised its regulations to allow undenatured ethanol to be used to produce hand sanitizer in accordance with guidance from the Food and Drug Administration (FDA). This presented a unique opportunity for some agribusinesses. Western New York Energy was one such business. Shortly after this TTB announcement, the phone at their plant in Medina, NY, began ringing off the hook with distillers looking to purchase non-fuel ethanol. They quickly adapted production to be able to extract the ethanol prior to it reaching the denaturing stage. The ethanol was then sold to upwards of 40 distillers from Maine to Pennsylvania to produce hand sanitizer using the World Health Organization’s local production recipe. To date, the plant has provided enough ethanol to produce at least a few million gallons of hand sanitizer. From the onset of the coronavirus pandemic and related market drops, one of Western New York Energy’s biggest concerns was the farmers who rely on them to grind their corn. “The ability to shift production was a huge win for everyone,” said Western New York Energy’s chief financial officer Michelle Kingdollar. “We were able to help the country by supplying ingredients to produce much-needed hand sanitizer, we were able to keep our employees actively employed and we were able to keep our farmers’ products moving.” “We recently bought several pallets of sanitizer back from our customers and donated bottles to some of our local farmers in order to help keep them safe and healthy,” added Michelle. “We can’t stress how much we appreciate our farmers. We will continue to do everything we can to keep using their products.” On the production side of sanitization products, Hudson Valley Distillers in Clermont, NY, quickly pivoted its business to 100% hand sanitizer overnight. “We were two days away from closing up shop,” said owner Chris Moyer. “But when we learned we could make hand sanitizer, it wasn’t even a decision. This pivot allowed us to keep the doors open, keep employees on the payroll and pay the bills while helping the community.”
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FINANCIAL PARTNER
SALUTE Customers await curbside pickup at Russo’s Fruit and Vegetable Farm in Tabernacle, NJ.
“
BEING PROACTIVE WAS
IMPORTANT TO US. I BELIEVE WE’VE BEEN SUCCESSFUL DURING THE PANDEMIC BECAUSE WE DIDN’T WAIT TO SEE WHAT EVERYONE ELSE WAS DOING BEFORE OPENING. – Anthony Russo IV Russo’s Fruit and Vegetable Farm Tabernacle, N.J. SUMMER 2020
9
For the most part, Chris said it was an easy shift. “Production is pretty much the same until you get to the point of making it hand sanitizer as opposed to spirits,” he explained. “We have to denature it, which is essentially adding a chemical to make it unpalatable. So, we had to understand that process plus source the additional ingredients.” The most challenging part of the transition was packaging. “As we got started, there was a huge demand for packaging. The supply chain dried up and prices skyrocketed,” he said. So initially they used cider jugs to package the sanitizer. Early on, Chris said the demand was intense, but things have since slowed to a reasonable pace as the regular sanitizer supply chain caught up. However, as businesses reopen, they’re seeing an uptick in wholesale
As the pandemic escalated, Hudson Valley Distillers in Clermont, NY, quickly pivoted to producing hand sanitizer.
demand. “As long as there is demand, we’re going to keep producing the sanitization products,” he said.
As he looks to the future, Chris said the worst-case scenario for his
“
business would be if the hand sanitizer chain stabilizes but restaurants and tasting rooms are still not fully opened. “That would be tough,” he said. “But we also grow rye on 11 acres for our whiskey, so this may be an opportunity for us to repurpose some of that land to allow
WE WERE TWO DAYS
for social distancing in an outdoor space. That might even help the
AWAY FROM CLOSING UP
GIVING BACK TO THE COMMUNITY IN A TIME OF NEED
SHOP. THIS PIVOT ALLOWED
While producers across the region were struggling right alongside
US TO KEEP THE DOORS
the rest of the country to make their own ends meet, it didn’t dampen
OPEN, KEEP EMPLOYEES
hardships their friends and customers were facing inspired many to
ON THE PAYROLL AND PAY
Hemphill Farms, a family-owned potato operation in Presque Isle,
THE BILLS WHILE HELPING
farm lost some of its markets. Having a large potato supply with
”
THE COMMUNITY. – Chris Moyer Hudson Valley Distillers Clermont, N.Y.
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business in the long term. So for now, time will tell.”
FINANCIAL PARTNER
their compassion for their local communities. On the contrary, the give back.
Maine, is one of those farms. As a result of COVID-19 closures, the nowhere to go, the farm began bagging potatoes to give to their neighbors. But what started as an effort to give back to the local community turned into a feat of generosity that provided 20,000 pounds of potatoes to people near and far, with some driving more than 100 miles thanks to a viral social media post. Garrett Hemphill, the farm’s co-owner, said people were lined up an hour before the potato giveaway was scheduled to begin. They initially put out 6,000 pounds of potatoes and when those were
SALUTE
cleared out within an hour, they just kept dropping more. They
“The Dryden Dairy Day committee thanks Trinity Valley for
estimated 400 people visited the farm that day.
their generous support,” commented Brenda Carpenter, chair of the
“It was a great way to give back,” said Garrett. “Every fall, our city
Dryden Dairy Day Committee.
gives high school students a ‘Harvest Break’ to help with the potato
“We’re very community oriented and try to support any cause that we
harvest, so this was a way for us to say thank you to the community
possibly can,” said owner Branden Brown. “Especially during these
that helps us every year.”
uncertain times, we hope that our milk is of help to those who need it.”
about 200 multi-colored daisies that they wanted to donate to those
SERVING COMMUNITIES ON THE FRONT LINES
on the front lines. After a simple social media post, their local
In addition to the many Northeast producers adapting their businesses
hospital reached out to coordinate the donation. A few weeks later,
and finding ways to support their communities during these trying
Hart’s donated pansies to another local hospital and to the Meals on
times, there are also many serving directly on the front lines.
Another operation that gave back was Hart’s Greenhouse and Florist LLC, based in Norwich, Conn. Just after Easter, the operation had
Wheels program.
John Sipala of Whitman Nurseries in Jamesport, NY, joined his local fire
“If we have extra plants, I like to get them out in the community to help
department 25 years ago and served as its chief for a time. His county,
build community spirit and make people feel good,” said Joyce Hart.
Suffolk County, NY, has the most volunteer firefighters of any county in
The coronavirus pandemic also resulted in the cancelation of many
the nation as a percentage of the population.
community events, including the Dryden Dairy Day, an annual event in Dryden, NY, to celebrate the contributions of dairy farmers and educate the community. However, Dryden Grange, the event’s sponsor, didn’t want to miss this important opportunity to connect
Silver Thread Vineyard in Lodi, NY, utilized technology to virtually engage customers during the COVID-19 pandemic.
“ ”
IT’S ALWAYS A BALANCING ACT OF MANAGING [MY] 150-ACRE FARM WHILE ALSO RESPONDING TO FIRE DEPARTMENT CALLS. – John Sipala Whitman Nurseries Jamesport, N.Y.
John said it’s always a balancing act of managing his 150-acre farm while also responding to fire department calls. “There are years where my business doesn’t give me the ability to make as many calls and other
farmers and the local community, so they shifted their efforts to coordinate milk donations and a traveling dairy parade; offer a higher education scholarship; and moved their coloring contest to a virtual format, encouraging participants to share their creations on social media using the hashtag #DrydenDairyDay2020. To execute the milk donation program, Dryden Dairy Day partnered with the Dryden Central School District and Trinity Valley Dairy in Cortland, NY. The goal was to deliver fresh, fluid milk to those in need. To accomplish this, Trinity Valley Dairy sold their milk at cost to Dryden Dairy Day, who then worked with the school district to distribute the milk to local families. On a weekly basis, 200 gallons
years, I earn the 100-alarm award for the year.” John also sits on the Suffolk County Fire Academy’s Vocational Education Extension Board, where three of the nine members are involved in agriculture. “The local departments are made up of local business people. People that love our town,” he said. When the pandemic hit, many New York City residents fled to the eastern end of Long Island. “This certainly caused an uptick in calls,” said John. “Our community is primarily a summer residence, so when the summer crowd is in town, and this year ahead of schedule, alarms certainly go up.”
of fluid milk were donated to the community. SUMMER 2020
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SALUTE
A FARM CREDIT EAST SALUTE Having worked with farmers, commercial
fishermen and forest product producers for more than 100 years, the Farm Credit East team has
witnessed our customers endure industry cycles, weather and market challenges before. While
the coronavirus pandemic introduced obstacles
the industry has never experienced before, it has been inspiring to watch Northeast agriculture adapt to continue to serve local communities. This article presented a small sample of the encouraging efforts taking place across the region. We know many producers, especially those who lost markets or were forced to close their doors when the outbreak hit, continue to endure the impacts of the pandemic. From the Farm Credit East family to the hardworking families we work with across the region, thank you for your strength, innovation and commitment. It’s an honor to be your trusted partner. We salute each and every one of you.
Farmers on eastern Long Island paraded their tractors past the local hospital in May to salute the efforts of healthcare workers and first responders.
VISIT THE WEBSITES BELOW TO LEARN MORE ABOUT THE OPERATIONS MENTIONED IN THIS STORY.
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Ellms Family Farm Ballston Spa, NY EllmsFarms.com
Hudson Valley Distillers Clermont, NY HudsonValleyDistillers.com
Silver Thread Vineyard Lodi, NY SilverThreadWine.com
Hart’s Greenhouse and Florist LLC Norwich, CT HartsGreenhouseFlorist.com
Liberty Vineyards & Winery Sheridan, NY LibertyWinery.com
Trinity Valley Dairy Cortland, NY TrinityValleyDairy.com
Hemphill Farms Presque Isle, Maine Facebook.com/HemphillFarms
Russo’s Fruit & Vegetable Farm Tabernacle, NJ RussosFruitandVeg.com
Western New York Energy Medina, NY WNYEnergy.com
FINANCIAL PARTNER
E FARM CREDIT EAST CARES
DONATES $144,000 TO SUPPORT COVID-19 RELIEF EFFORTS
“
Farm Credit East Cares was created to support farm families, their communities and support organizations during times of need. Many of our region’s agricultural producers are working with local food banks to provide fresh products for residents impacted by the pandemic. These funds will help those food banks continue to assist those in need, while also supporting the region’s producers. – Mike Reynolds Farm Credit East CEO
Over the summer months, Farm Credit East staff typically enjoy getting out of the office to participate in local community events. In past years’ summer issues, we’ve shared photos of staff participating in dairy parades and other educational events; raising funds for community organizations via softball and golf tournaments and Relay For Life events; or helping out at local food banks. Unfortunately, the coronavirus pandemic and related safety precautions have resulted in the cancelation of many of these favored annual events – but that didn’t halt the compassion of our team. Instead this year, the Farm Credit East Cares Community Fund donated $144,000 to various charitable organizations across the Northeast to support COVID-19 relief efforts. Recipient organizations were selected by staff from Farm Credit East’s 20 branch offices. More than 60 northeast organizations providing food to those in need along with other support services received funds.
SUMMER 2020
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ADAPTING TO THE NEW NORMAL…
By Paul Herrington Farm Credit East State Certified Appraiser
The year began business as usual. As a state certified appraiser, I split my week between in-office work and farm visits to complete customer appraisals. Never did I anticipate the changes to come as we entered the second quarter. As the coronavirus pandemic and related relief programs escalated, I was asked to join a team of employees from across the association to become a regional specialist and assist customers in completing Paycheck Protection Program applications. In this new support capacity, I had to draw on my previous experience as a loan officer to answer questions, source information and find creative solutions to assist customers. Throughout the process, customers have been grateful for this support. Even when we haven’t been able to give them everything they need, they’ve been appreciative of the guidance we were able to provide. However, appraisals still need to be completed despite the pandemic. To protect the health and safety of staff and customers, we weren’t able to able to complete in-person, on site appraisals, but that didn’t mean work couldn’t be done. We just had to make some adjustments to the ‘traditional’ way we’ve completed appraisals. Until very recently, appraisals consisted of video calls and many, many photos. I’ve scheduled virtual tours, requested photos and videos from owners, and contacted realtors for permission to use their photos. While these methods don’t quite compare to being on site and seeing all aspects of a property with your own eyes, a virtual meeting still allows me to ask about property characteristics, see objects up close or even ask for a second look in real time.
FOR NOW
Google Earth also came in handy, providing date-stamped land or building views from the road. Additionally, my local connection allows me to visualize the area and confirm the Google Earth images. It may not be a perfect strategy, but it allows the work to be completed remotely and on a timely basis. I’ve been appreciative of customers’ understanding during this time. As long as we can gather the data to feel comfortable in the appraisal, the customer is supportive because it keeps their process moving, too. We’re all in this together. As we work toward a slow and steady return to normal, I look forward to getting back on farms to do physical inspections. The customer connection is what I love about completing appraisals — when you can understand a person’s motivation for purchasing or owning property and how they want to utilize it, that’s what I most enjoy — so I look forward to a return to business-as-usual.
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FINANCIAL PARTNER
THE VALUE OF OWNERSHIP As a cooperative, a benefit of Farm Credit East members’ ownership includes a share in the association’s financial success. Farm Credit East’s continued financial strength has resulted in members receiving patronage payments for the last 25 consecutive years, as well as mid-year patronage payments this year as well as the past two years. Since the patronage program was first adopted, customers of Farm Credit East (and predecessor associations) have received $918 million in dividends from ownership of their cooperative.
“
The association’s customer-owners are at the core of every business decision. For this reason, Farm Credit East strives to maintain competitive interest rates. The association’s pricing strategy is to adjust interest rates when there are changes in variable rate funding costs.
One of the Board’s guiding principles is maintaining the value of customer ownership. We’re fortunate to be part of a financially strong organization, and both the board and management remain committed to returning that value to customer owners through patronage dividends and competitive interest rates. – Board Chair Laurie Griffen Stillwater, N.Y.
”
FEBRUARY $70 million patronage On average, eligible customers received about a 1.04% reduction in their effective interest rate.
APRIL Base variable interest rate pricing reduced by 1%
FEBRUARY
MAY
$65 million patronage On average, eligible customers received 20.5% of the interest paid in 2018.
Base variable interest rate pricing reduced by 0.25%
OCTOBER FEBRUARY $60 million patronage On average, eligible customers received 22.5% of the interest paid in 2017.
Base variable interest rate pricing reduced by 0.25% This reduction was in addition to movement in national interest rates influenced by the Federal Reserve.
JUNE Base variable interest rate pricing reduced by 0.25% This reduction followed the return of Farm Credit East’s cost of funding to its historical relationship with the Fed Funds rate.
JULY
OCTOBER
OCTOBER
$15 million special patronage This payment equated to about 11% of stockholders’ interest costs.
$25 million special patronage This payment equated to approximately 0.45% of eligible average customer loan volume.
$30 million patronage advance For the full year 2020, Farm Credit East is targeting patronage of 1.25% of average eligible loan volume, so members received an advance on that expected payment equal to about 0.50% of current loan volume for the average customer.
2018
2019
2020
WASHINGTON Update
Tom Cosgrove Executive Vice President for Public Affairs
FEDERAL RESPONSE TO COVID-19 – MORE TO COME?
In response to the COVID-19 pandemic,
called the Paycheck Protection Program
This issue was addressed in the $3 trillion
Congress has passed four major pieces of
(PPP). Most employers with fewer than 500
Health and Economic Recovery Omnibus
legislation providing trillions of dollars
employees were eligible for low interest
Emergency Solutions (HEROES) Act passed by
of support to individuals, businesses and
loans equal to 2.5 times monthly payroll.
the House of Representatives which includes
state governments. As states reopen, the
These loans are forgivable if spent on
$875 billion for state and local governments.
question is whether Congress will provide
qualified expenses, including 60% spent
Unlike the other four laws, the HEROES
additional funding for recovery, and if so,
on payroll, though the SBA is still finalizing
Act has not been a bipartisan effort and the
what it will include.
some of the rules for forgiveness.
Republican-led Senate has indicated it would
Following the passage of an $8.3 billion
work on a more narrowly crafted bill.
measure with funding for public health,
16, Congress passed the PPP Enhancement
medical supplies and vaccine development,
Act to provide an additional $310 billion
are advocating for additional funds for
the Families First Coronavirus Response
for PPP as well as additional funding for
agricultural producers, indicating that the
Act (FFCRA) was signed into law on March
the SBA’s Economic Injury Disaster Loans
CFAP payments are not sufficient, especially
18. The primary provisions related to most
(EIDL) and emergency grants. The bill made
for certain producers such as apple growers
employers with 50 to 500 employees,
ag producers eligible for the EIDL and also
who will have difficulty qualifying. The
providing up to 10 days of expanded paid
provided $100 billion in support for hospitals
HEROES Act contained several agricultural
sick leave and family and medical leave.
and testing.
provisions including additional support for
The largest and most comprehensive
USDA also received funding from the
In addition, many farm organizations
livestock, dairy and specialty crop producers
COVID-19 relief legislation thus far has been
CARES Act and on April 17 announced
as well as funding for local farmers’ markets.
the Coronavirus Aid, Relief and Economic
the details for the $19 billion Coronavirus
It is unclear if the Senate is considering any
Security (CARES) Act signed into law
Food Assistance Program (CFAP), including
of these specific measures.
on March 27. This $2.2 trillion package
$16 billion in payments to producers and
Certainly, the level of economic
is wide ranging, including economic
$3 billion for direct food assistance. USDA
assistance that Congress has provided is
impact payments to taxpayers, enhanced
began taking applications for the CFAP direct
unprecedented. By the time this issue of
unemployment benefits, individual and
payments on May 26.
Financial Partner arrives, the trillion-dollar
business tax relief, support for the health
Additionally, the CARES Act provided
question may already be answered as to
care system, an economic stabilization fund
$150 billion to states for COVID-19 expenses,
whether Congress will provide additional
for major industries like the airlines, and
but many state and local governments in
funding and if it will include support for
funding for state governments.
Farm Credit East’s territory are facing major
state and local governments or additional
budget deficits with increased COVID-19
assistance for agricultural producers.
A key piece of the CARES Act was the
16
After initial PPP funding ran out on April
$349 billion Small Business Administration
costs and revenue shortfalls due to the
(SBA) forgivable loan guarantee program
economic shutdown.
FINANCIAL PARTNER
MEET OUR
SCHOLARSHIP WINNERS EACH EARNED $1,500 TOWARD HIGHER EDUCATION 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
M A R G A R E T B R A DY
MAR I E LLE PE LLETI E R
Easton, Conn.
Industry, Maine
ABRAHAM BALDWIN AGRICULTURAL COLLEGE MAJOR: LIVESTOCK PRODUCTION CAREER PATH: BOVINE ARTIFICIAL INSEMINATION TECHNICIAN & GENETIC SPECIALIST
UNIVERSITY OF MAINE MAJOR: ANIMAL SCIENCE CAREER PATH: LARGE & SMALL ANIMAL VETERINARIAN
Already certified in artificial insemination, Margaret plans to continue her education to pursue a career in bovine genetics to assist the beef and dairy industries.
L I N D S AY M E Y E R S Southbury, Conn. THE UNIVERSITY OF DELAWARE MAJOR: PRE-VETERINARY MEDICINE CAREER PATH: LARGE OR SMALL ANIMAL VETERINARIAN
Lindsay hopes to expand her knowledge in genetics and animal reproduction to protect the safe practice and integrity of breeding standards as a veterinarian in the future.
A N K IT KU M A R S I N G H Tolland, Conn. UNIVERSITY OF CONNECTICUT MAJOR: NATURAL RESOURCES AND ENVIRONMENTAL SCIENCE CAREER PATH: AGRI-BUSINESS & CONSULTING
Ankit plans to use his knowledge of mechanical and environmental engineering to further research hydroponics in conjunction with his consulting experience to help farmers implement sustainable farming practices. MAINE
AMBER FERRIS Peru, Maine
Working on the farm for as long as she can remember, Marielle learned her passion for animals. She plans to own a veterinary practice in the future.
ANNA ROBINSON Presque Isle, Maine UNIVERSITY OF MAINE MAJOR: ANIMAL & VETERINARY SCIENCE CAREER PATH: LARGE ANIMAL VETERINARIAN
Anna’s lifelong interest in livestock led her to pursue a degree in veterinary science. She plans to attend graduate school to further her education after graduation.
C I E R R A WAT E R S Bradford, Maine HUSSON UNIVERSITY MAJOR: BUSINESS ADMINISTRATION CAREER PATH: AGRI-BUSINESS
Cierra aims to use her farm and 4-H background along with her degree to pursue a career helping farms in need of assistance.
N OAH WH ITE Washburn, Maine UNIVERSITY OF MAINE AT PRESQUE ISLE MAJOR: BUSINESS ADMINISTRATION CAREER PATH: FARM MANAGER/OWNER
After graduation, Noah plans to apply the knowledge he’s gained to take over his family’s third-generation farm business in the future.
UNIVERSITY OF MAINE MAJOR: ANIMAL & VETERINARY SCIENCE CAREER PATH: LARGE & SMALL ANIMAL VETERINARIAN
After graduation, Amber plans to apply to a graduate veterinarian program, focusing on large animals such as dairy cattle and horses, as well as small companion animals.
SUMMER 2020
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M AS SAC H US E T TS
N E W YO R K
B R IAN C U R LEY
MAD I S O N B E NTLEY
Ipswich, Mass.
Athens, NY
UNIVERSITY OF MASSACHUSETTS – AMHERST MAJOR: SUSTAINABLE HORTICULTURE CAREER PATH: GREENHOUSE MANAGEMENT
PAUL SMITH’S COLLEGE MAJOR: FORESTRY CAREER PATH: FORESTRY TECHNICIAN
After graduation, Brian plans to either work in the commercial greenhouse business or become an agricultural educator for high school students.
Madison attributes his passion for forestry to his grandfather and uncle. He hopes to pursue a career in forestry, possibly starting his own business after graduation.
COLIN KADIS
JESSE BRAUN
Newton, Mass.
Lisbon, NY
CORNELL UNIVERSITY MAJOR: ANIMAL SCIENCE CAREER PATH: DAIRY FARM MANAGER
COLUMBIA UNIVERSITY MAJOR: SUSTAINABLE DEVELOPMENT & COMPUTER SCIENCE CAREER PATH: ENVIRONMENTAL/AGRICULTURAL LAW
Having worked on dairy farms in multiple states and Ireland, Colin plans to continue his career in the dairy industry after graduation, with his goal to become a large, progressive herd manager. NEW HAMPSHIRE
MORGAN MACMILLAN Hollis, NH UNIVERSITY OF CONNECTICUT MAJOR: SUSTAINABLE PLANT & SOIL SYSTEMS CAREER PATH: SUSTAINABLE AGRICULTURE
Morgan hopes to apply her education and hands-on experience in greenhouse and nursery production, as well as her volunteer experience to a career in sustainable agriculture. NEW JERSEY
Z O E L O C KB U R N E R Newton, NJ CORNELL UNIVERSITY MAJOR: AGRICULTURAL SCIENCES CAREER PATH: CROP CONSULTANT
Living on a fourth-generation dairy farm inspired Zoe to pursue a degree in horticulture. She aims to support farmers as a crop consultant.
J A C E LY N R U D D E R O W Pedricktown, NJ IOWA STATE UNIVERSITY MAJOR: BIOLOGICAL SYSTEMS ENGINEERING CAREER PATH: FOOD ENGINEERING
Jacelyn hopes to use her degree to help resolve issues on food production lines, lowering the risk for allergic reaction due to cross contamination.
E A M O N N WA LTO N Medford, NJ DELAWARE VALLEY UNIVERSITY MAJOR: ANIMAL SCIENCE CAREER PATH: DAIRY FARM MANAGER/OWNER
Working on his uncle’s dairy farm in Ireland inspired Eamonn’s pursuit to own a diversified organic dairy farm after graduation.
Jesse plans to attend law school after graduation to become wellversed in environmental law and its relation to agriculture to facilitate conversations between agricultural and environmental groups.
REBECCA COLGAN Auburn, NY SUNY COBLESKILL MAJOR: AGRICULTURAL SCIENCES CAREER PATH: AGRI-BUSINESS AND CONSULTING
Rebecca plans to use her agricultural sciences degree to become a dairy herd manager. After gaining sufficient experience, she would also like to have a career in farm consulting.
MORGAN DEPUE Hamburg, NY CORNELL UNIVERSITY MAJOR: ANIMAL SCIENCE CAREER PATH: LARGE ANIMAL VETERINARIAN
With a degree in veterinary medicine, Morgan plans to treat large animals and boost farm efficiency, providing herd health and nutrition for dairy farms.
P E Y T O N F O N TA I N E Strykersville, NY CORNELL UNIVERSITY MAJOR: AGRICULTURE SCIENCES CAREER PATH: AGRICULTURAL EDUCATION
Peyton wants to help shape the future of the ag industry by inspiring the youth of today and tomorrow to be involved in and support agriculture.
H A N N A H -R O S E F O O T E Richmondville, NY SUNY COBLESKILL MAJOR: AGRI-BUSINESS CAREER PATH: AGRICULTURAL EDUCATION
Hannah-Rose hopes to use her degree to become an agricultural educator, to expand middle- and high-school students interests and knowledge of agriculture.
EMMA GENDRON Willet, NY SUNY COBLESKILL MAJOR: ANIMAL SCIENCE CAREER PATH: LARGE ANIMAL VETERINARIAN
Emma plans to pursue a career in veterinary medicine, caring for large animals while also bringing knowledge back to her own family’s dairy farm. 18
FINANCIAL PARTNER
E LIJAH HALS EY
LAU R A LITTR E LL
Water Mill, NY
St. Johnsville, NY
LAFAYETTE COLLEGE MAJOR: CIVIL ENGINEERING CAREER PATH: FARM MANAGER/OWNER OR AGRICULTURAL ENGINEER
CORNELL UNIVERSITY MAJOR: ANIMAL SCIENCE CAREER PATH: DAIRY FARM MANAGER/OWNER
Elijah is following in his grandfather’s footsteps, pursuing an engineering degree. After graduation, he will apply the knowledge learned on his family’s 13-generation vegetable farm.
With a well-rounded education and hands-on experience, Laura plans a career in dairy, either as a herd or calf manager, while also focusing on dairy cattle genetics.
JOSEPH PROE
GRACE HARRIGAN
Canandaigua, NY
Chateaugay, NY CORNELL UNIVERSITY MAJOR: ANIMAL SCIENCE CAREER PATH: AGRICULTURAL EDUCATION
Agricultural leadership programs guided Grace’s career path. She hopes to give back to these programs in the future by becoming an educator.
CORNELL UNIVERSITY MAJOR: VITICULTURE & ENOLOGY CAREER PATH: VINEYARD MANAGEMENT OR CONSULTING
After graduation, Joseph will utilize his vineyard management training to educate others on sustainable farming practices to support their business success.
J U S T I N S E LTZ E R
A D A M KI N G
West Valley, NY
Schuylerville, NY CORNELL UNIVERSITY MAJOR: AGRICULTURAL SCIENCES CAREER PATH: DAIRY FARM MANAGER/OWNER
Adam’s passion for agriculture led him to pursue a degree in agricultural sciences. He plans to bring the applicable knowledge learned back to his family’s farm after graduation.
SUNY ALFRED MAJOR: HEAVY EQUIPMENT/DIESEL TECHNICIAN CAREER PATH: FARM EQUIPMENT MECHANIC
Growing up around farms of different enterprises, Justin understands their common need for equipment. This is why Justin plans a career as a mechanic serving the ag community.
A L I C I A S H E PA R D
J O H N ATH A N KI N G
Henderson, NY
Schuylerville, NY CORNELL UNIVERSITY MAJOR: ANIMAL SCIENCE CAREER PATH: DAIRY FARM MANAGER/OWNER
With a focus on dairy management, Johnathan is eager to continue his education and eventually return to the family dairy farm to take on more responsibility.
SUNY COBLESKILL MAJOR: AGRI-BUSINESS CAREER PATH: AGRICULTURAL ACCOUNTING/FINANCE
Alicia’s exposure and involvement with agriculture in the classroom and FFA inspired her career path in ag accounting or finance.
B R YA N N A WA R N E R
AMBER LEWIS
Frewsburg, NY
Rexville, NY
WILMINGTON COLLEGE MAJOR: AGRICULTURAL BUSINESS CAREER PATH: AGRI-BUSINESS
SUNY COBLESKILL MAJOR: AGRICULTURAL BUSINESS CAREER PATH: AGRICULTURAL FINANCE
Amber would like to pursue a career in ag business, focusing on appraisal, tax or accounting, to provide farmers with quality financial services.
Showing livestock at fairs in her youth inspired Bryanna’s career path. Her goal is to become involved in the fair industry at the county, state and national levels.
FARM CREDIT EAST “CHAIR SCHOL ARSHIP” RECIPIENT For the past four years, former Board Chair Matt Beaton has selected an additional $1,500 scholarship to a student committed to a career in production agriculture. This scholarship was awarded upon a secondary, in-depth review of the applications and is in addition to the $1,500 Farm Credit East scholarship. C H A R L OT TE KE I L Mattituck, NY CORNELL UNIVERSITY MAJOR: AGRICULTURAL SCIENCES CAREER PATH: GREENHOUSE MANAGEMENT
Charlotte’s appreciation for plants stems from her upbringing near her family’s wholesale greenhouse business. She aims to become the first woman in a leadership role in the family business.
TO BE A CANDIDATE FOR A 2021 SCHOLARSHIP, CONTACT A FARM CREDIT EAST BRANCH OFFICE OR VISIT FARMCREDITEAST.COM A P P L I C AT I O N S W I L L B E AVA I L A B L E I N J A N U A R Y 2 0 21
SUMMER 2020
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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 dedicated to the growth and prosperity of agriculture.
Farm Credit East 240 South Road Enfield, CT 06082-4451 Address Service Requested
PRSRT STD U.S. Postage PAID Permit No. 690 Springfield, MA
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 ©2020 by Farm Credit East, ACA. All rights reserved. Farm Credit East is an affirmative action, equal opportunity employer.
2021 FINANCIAL PARTNER is printed on recycled paper.
AG R IC U LT UR A L VI E WS CALENDAR PHOTO CONTEST
Help us fill Farm Credit East’s Agricultural Views 2021 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 2021 Calendar and also earn you a $100 cash prize! • 14 photos will be selected for a $100 cash prize each • Submission deadline: July 31, 2020 NEED CREATIVE INSPIR ATION? VISIT FA R M C R E D I T E A S T.C OM /C A L E N DA R
UPLOAD YOUR BEST SHOTS TO OUR WEBSITE BY JULY 31 FOR YOUR CHANCE TO WIN A $100 CASH PRIZE
