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service with a smile INSIDE News & Views 2 CEO Letter 3 Cover Story 4 Knowledge Exchange 10 Farming Myths 12 Sharing Their Time 15 Hitting to All Fields 16 26 Years of FP 18 Washington Update 20 Scholarships 21 Community Support 24
NE &v W iew S s Agricultural Views 2015 Photo Calendar Contest Upload your best shots to our website by July 31 It’s time to dust off your digital cameras and take some of your best shots. Or to go to your photo library for your best winter, spring or fall photos. We hope you will continue to amaze us with your ability to capture picture-perfect moments. Winning photos will be featured in our 2015 calendar and on our website. We select two very different types of entries: • First, we look for photos that show off the best of Northeast farming, horticulture, forest products and commercial fishing. We are particularly fond of action shots in the fields, forests, barns, sawmills, docks or on the open seas. • And, second, we are equally interested in photos that celebrate country life in New England, New York or New Jersey, any time of year. We get lots of terrific entries every year, and always look for more. However, we receive very few photos for the winter months or December holidays and very few shots from the forest products industry. We want our 2015 calendar to represent all seasons in Northeast agriculture as well as all industries. So show off your best high-resolution, in-focus shots by submitting your work to FarmCreditEast.com/calendar.
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Welcome New Board Members In the April election for open seats on the Farm Credit East Board of Directors, customer-members elected two new directors. Michael N. Brooks, of Elmer, N.J., was elected to a fouryear term. Mike, whose business is served by the Bridgeton branch, will represent the eastern region. Mike owns Dusty Lane Farms, LLC in partnership with his parents, William and Diane Brooks. Dusty Lane Farms is a diverse, 1,500-acre irrigated operation producing white potatoes, tomatoes, spinach, sweet corn, corn and soybeans. The farm also includes 27,000 square feet of heated greenhouse space for vegetable transplants. Philip “Jamie” Jones, of Shelton, Conn., was elected to a three-year term representing the central region. Jamie manages Jones Family Farms, LLC, a harvest-your-own berries, pumpkins and Christmas trees farm. He also owns and manages Jones Family Farms Winery, LLC. Jones Family Farms has positioned itself as a consumer destination for diverse farm products. Jamie is in business with his parents, Terry and Jean Jones, as well as his wife, Christiana Jones. In other regions, Andrew J. Gilbert, of Potsdam, N.Y., and Richard P. Janiga, of Marilla, N.Y., were both reelected to four-year seats. We congratulate the winning candidates. Thanks to our customer-members for voting and to our nominating committee for providing a great slate of candidates. We also thank Sam Conard for his three years of dedicated service as director and to two retiring directors, Ben Freund and June Hoeflich, for their leadership throughout their terms. In addition to the recently elected members, the Board includes: Matthew W. Beaton, Wareham, Mass.; Robert R. Brown II, Waterport, N.Y.; Daniel J. Corey, Monticello, Maine; Christine E. Fesko, Skaneateles, N.Y.; Laurie K. Griffen, Schuylerville, N.Y.; Ann P. Hudson, Suffield, Conn.; Henry L. Huntington, Loudon, N.H.; Peggy Jo Jones, Boise, Idaho; John P. Knopf, Canandaigua, N.Y.; Henry E. McPherson, Hermon, Maine; Lisa P. Sellew, Lebanon, Conn.; Douglas W. Shelmidine, Adams, N.Y.; and Donald P. White, Bangor, Maine.
At Your Service Tipping Our Hat to a Top-Notch Customer Service Team
CEO’s Message
Bill Lipinski, CEO, Farm Credit East
I am not shy about the pride I take in our outstanding team of lending experts, tax, payroll and record-keeping specialists and business consultants, all who make Farm Credit East a key partner to ag businesses throughout the Northeast. However, none of us could offer the topnotch experience that our customers have come to expect without the efforts of our customer service specialists. When you call your local Farm Credit East office during business hours, a familiar, friendly voice answers the phone, not an automated system that sends you in circles or frustrates you. When you walk in the front door, these folks are the first to greet you with a warm hello and a smile. They know from your voice whether it’s a good time to chat about family or it’s time to get right down to business and quickly advance the funds you need to your checking account. You know them as Sally, or Marilyn or Gail or other first name. Typically, they are your first line of contact in getting access to the services and resources you need. At Farm Credit East, we call them “customer service specialists” and say that they truly serve as the window
to our financial cooperative. Me, I call them the secret ingredient in our high quality customer service!
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… our customer service specialists truly serve as the window to our financial cooperative.
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Busy with the day-to-day operation of your businesses, we know that you don’t have time to spend on hold or to repeat
your issue multiple times in hopes that someone along the line will address your concerns. For that reason, customer service has long been at the top of our list of organizational priorities, a value that remains unchanged. We don’t consider our customer service team as simply “the people who answer the phones.” Our specialists are well versed on the ins-and-outs of the industries our branches serve: from dairy to fruit, forest products to cold storage, they understand your business so as to direct you to the Farm Credit East expert who can serve you best. More often than not, I hear our customers refer to their customer service specialist by name. This speaks volumes as to the quality of relationships that they forge with each of you, and certainly this is no accident. With this in mind, I’d like to give a heartfelt thank you to all of the men and women who serve as our front line. In an age of declining customer service, you make Farm Credit East a model for what great customer care should — and does — look like.
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Service with a smile Keeping excellent customer service a top priority A recent nationwide survey conducted by the Better Business Bureau found that 67 percent of respondents had finished a call with a customer service representative without feeling that their concern had been addressed. The same survey revealed that 71 percent of respondents were “tremendously annoyed” when they were unable to speak to a live person.1 In an age of increasing automation and emphasis on speed over quality, you likely have your own stories of customer service gone terribly wrong. At Farm Credit East, we have long felt that this problem has a relatively simple solution: make sure that our customers speak to a human being who cares about their concerns and is willing to take the time they need. While that objective sounds simple, putting it in practice requires far more than just staffing the phones. For Farm Credit East, it has meant creating a dedicated team of 64 customer service specialists in our 21 branch offices who come to work each day ready to serve customers, resolve their issues and provide them with a great Farm Credit experience. Recently, we invited five of our specialists to chat over a cup of coffee and reflect on the joys and challenges of their job. Combined, our coffee group boasts an average of 23 years on the job and countless customers served.
“Customer Service Buying Guide.” www.consumerreports.org/cro/customer-service/buying-guide.htm Last updated: April 2013.
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Walking a mile in our customers’ shoes Gail Daddario, a customer service specialist in our Bridgeton, N.J., office, stressed that there is no average day in her line of work. “The answer to ‘What I like best about my job’ or ‘What is most challenging’ changes by the day. Every customer interaction is unique,” she said. To illustrate the unpredictability inherent to their position, Jennifer Paradis of our Presque Isle, Maine, office, recounted a customer service visit that took an unexpected turn. “I went with one of our loan officers to notarize a document at a customer’s place of business,” she recalled. “We ended up at the end of a potato field signing the documents on the hood of a car. Honestly, I love being on our customers’ farms.” Admittedly, the tasks of a Farm Credit East customer service specialist often involve more nuts-and-bolts tasks: processing payments and advances, preparing documentation for loan closings and preparing quarterly reports for their respective branch offices are all responsibilities of our skilled specialists. However, according to Jane Samson of our Bedford, N.H., office, the best part of the job lies in interacting with our customers one-on-one. “I like connecting with customers and resolving their issues in that moment,” she said. “For example, if a customer is having an issue with one of our online systems, they may be frustrated when they call. But it’s a good feeling to walk through the issue together until they are back on track.” Jennifer agreed that first understanding where a customer is coming from is essential before moving forward to fully meet their needs. “I know from experience that when a customer service rep doesn’t provide validation, you don’t want to deal with that company again,” she said. “So I make it a point to keep a happy, warm voice on the phone and ask questions until I completely understand and can then help solve the problem.” Sally Murdie, a customer service specialist in our Potsdam, N.Y., office, enjoys the more technical aspects of her job. “I love working with loan officers on complex loans and helping them grow the business. I’m a numbers person, so it makes me feel good when our loan volume and financial services numbers go up.” Nonetheless, Sally echoed her coworkers’ thoughts that a good attitude is at the core of her work. “I give our members the kind of
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service I expect from a company. If I don’t know the answer, I find the person who does have that information.”
The (positive) feedback loop In any profession, feeling valued is a key ingredient in loving your job. The same is true of our customer service specialists — and they invariably look to their customers’ satisfaction as an indicator that they’re succeeding. “I hope that my customers feel that they can trust me to do what they ask without worry, and that I’m knowledgeable and reliable,” said Marilyn Steffen of our Geneva, N.Y., office. She then added, “I enjoy my job and I want that to come through when I talk to customers.” No risk there, according to one of Marilyn’s customers, Seldon Chase, of Windswept, LLC in Honeoye, N.Y., “I think the world of Marilyn,” he said. “Just having Marilyn Steffen on the other end of the phone makes my life a lot easier. No matter what I say about her falls short of what she’s worth.” Sally agreed that she takes great pride in her customers’ feedback. “One farmer said that I was the hub of the office and the glue that holds everything together,” she said. “That feels good to hear.”
The voice of Farm Credit East Many new customers come prepared for a subpar customer service experience. Our specialists know how crucial this first contact is in setting new expectations. “We are the front line,” said Jane. “When a new customer calls, we set the tone for Farm Credit East by sounding confident and directing them to the right person. How we handle that first call really tells them what kind of company we are.” And “what kind of company we are” isn’t just an empty phrase to our customer service specialists. “Farm Credit East has a long history of putting farmers first,” said Marilyn. “I’m proud to say that I work for Farm Credit.” For Jennifer, the true import of her work becomes most clear when she is out of the office. “I’m most proud of what we do when I drive through farmland and see beautiful planted fields,” she said. “I’m proud to say that that land is farmed by our farmers.”
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Service with a Smile Gail Daddario
15 years of service / Bridgeton, N.J.
“Gail is 100 percent accommodating. She can handle any request … be it an advance, making a loan payment or researching a balance. Gail is a great communicator and if she needs more info, she’ll quickly research and then follow up.” - Matt Viall Lund’s Fisheries, Inc. / Cape May, N.J.
Sally Murdie
25 years of service / Potsdam, N.Y.
“Sally seems to know ahead of time why I’m calling. She makes my job so much easier and never makes me feel rushed. She is as professional as she is down-to-earth. I feel very comfortable asking her questions about any aspect of our loan I don’t understand.”
- Trudy Bilow Bilow Farms, LLC / Malone, N.Y.
Jennifer Paradis
11 years of service / Presque Isle, Maine
“Being the bookkeeper on our family farm, I rely on Jennifer’s help for things as simple as account balances and as complicated as financing our recent expansion. She is a true asset to our farming community.”
- Ann Hagan Hagan Farms / Houlton, ME
Jane Samson
25 years of service / Bedford, N.H.
“Jane is always cordial and happy to hear from us, even though we know she has a mountain of work. She always manages to resolve our issue, from dealing with flood zone issues to helping us access our account online. In short, she cares!”
- Joe and Barbara Colby Colby Lumber, Co. / Boscawen, N.H.
Marilyn Steffen
39 years of service / Geneva, N.Y.
“I think the world of Marilyn. To her, I am not a number; I am a name. Having Marilyn on the other end of the phone makes my life a lot easier. All companies should have someone like her as a personal contact for customers.”
- Selden Chase Windswept, LLC / Honeoye Falls, N.Y.
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From phones to field
Going the distance
Each of our customer service specialists develops industry-specific knowledge relative to the branch where they work. For Gail, that means having an intimate understanding of commercial fishing seasons and the capital needed for a new nursery. Jennifer, on the other hand, knows a bit more about the expenses inherent to a potato farm and the basic equipment needed for a timber harvest. Acquiring an intimate understanding of their customers’ businesses is key in delivering satisfying customer service. Of course, there’s no better way to become familiar with a trade than with hands-on learning. For our customer service specialists, this can be a perk. “I remember on one occasion raking cranberries in a customer’s bog for harvesting,” Gail recalled fondly. “And once during a farm review visit with loan officers, I enjoyed the chance to tour that customer’s cold storage facility to see exactly what he does.” According to our coffee group, these experiences do more than just provide a deeper knowledge of the businesses Farm Credit East serves; they also create a more personal working relationship with each of their customers. “It really says a lot about the relationship we have with our customers,” said Jane. “They appreciate what we do and by finding out more about their business, we show that we’re interested in them as well.”
Excellent customer service means more than simply responding to a customer’s concerns; it often means anticipating concerns before they even come up. Jane told the group about one instance when a customer was perhaps too on top of her finances, which raised a red flag. “She sent in two exact payments at the same time; so, before I processed them, I thought I should call to see if she meant to do that,” said Jane. “She didn’t — and this could have cost her fees to her checking account with her local bank, but I’ve learned to notice when a customer does something that they don’t normally do,” she said. Occasionally, a missed detail can have significant consequences. Our customer service specialists excel at dotting i’s and crossing t’s. “If I’m working on a loan closing deadline, for example, I’m reviewing documents to make sure that all details are accurate so no last-minute issue holds up the closing,” said Gail. “And if there is a problem, I make it a priority to stay steady and calm and say, ‘We’ll figure this out.’”
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Putting “customer” in “customer service”
A key ingredient in the success of our customer service specialists lies in the agricultural roots that many of them share. Of the five women in our coffee group, three have a background in one of the industries served by Farm Credit East. Sally and Marilyn both spent their childhoods on a dairy farm, an experience that Marilyn remembers with pride. “My sister and I grew up on a 50-cow dairy farm, so farming has been my life.” As for Sally, she and her husband continue the farming tradition with a small herd of 15 Hereford beef cows. Jennifer also enjoys ties to the agriculture industry, having spent several years running a small logging operation with her husband. “We used to be Farm Credit borrowers,” she explained. “And because of that, I now understand what all those documents I used to sign mean. That part is interesting to me.”
Of course, a customer service specialist is only as good as the customers they serve, and on this count, our coffee group was effusive. “I work with customers who are hard-working, smart, dedicated and nice people,” said Jane. “And Farm Credit East naturally wants to help farmers like this stay in business.” Sally added that it is important to her that her customers feel that they are the most important part of her day — an attitude that she brings to bear each time she answers the phone. Not that her conscientiousness goes entirely without reward: “I have a customer who calls me every year to wish me a happy birthday. On my 40th, he sent me flowers with black balloons,” she recalled with a laugh. Throughout our conversation, one element became clear: Our customer service specialists deliver an unparalleled experience because they believe in what they do “...farming — in our customers’ businesses, in the has been industries we serve and in Farm Credit my life.” East’s mission. So, yes, it is relatively easy to ensure high quality customer service: Build a great company dedicated to doing great work for great customers. And, according to our team, so far, so good.
Advances in technology have brought many changes over the past 10 years. The ability to conduct business or transfer funds electronically creates efficiencies for us and our customers. Unfortunately, this technology can bring increased opportunity for fraud.
Protecting Against Online Fraud
That’s why, Farm Credit East works diligently to protect against fraudulent activities and our customer service team and employees remain vigilant about this topic. In some situations, a member of our team will contact you to verify the legitimacy of a request, such as a disbursement to a thirdparty vendor or new electronic funds transfer or online banking enrollments. We want to assure you that we do this to safeguard the integrity of all transactions, not to hold up your transaction in any way.
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The More You Know
Keeping ahead of the curve with Knowledge Exchange The Information Age may have held the promise of a steady stream of usable information, but, in practice, it has meant a torrent of data often impossible to digest completely. As business owners, you need distilled information relevant to your industry … and you need it at the ready. To that end, several years ago, Farm Credit East established our Knowledge Exchange team as a resource to provide up-to-date information directly related to your day-to-day decision-making. From our monthly Knowledge Exchange Partner newsletter to our researched reports on the state of Northeast agriculture, Knowledge Exchange provides a collection of publications in an easy-to-scan format. In addition to our regular publications, our industry experts deliver essential data for your business via a webinar series, industry reports and business outlooks. Here’s an overview of how Farm Credit East Knowledge Exchange can be a great resource for you.
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Knowledge Exchange Resources • Knowledge Exchange Partner. This monthly online newsletter covers market trends, industry challenges, financial analysis, benchmarking and cutting-edge financial thought. Recent stories have explored the decline of juvenile lobsters in the gulf of Maine and the importance of dairy farm liquidity in volatile times. • Webinars. Our free webinar series covers topics ranging from the Affordable Care Act to the dairy industry outlook. Presenters include Farm Credit East experts as well as representatives from leading national organizations, top universities and the USDA.
• Industry reports. Our regular reports put a spotlight on agriculture’s vibrant and dynamic role in the Northeast economy. By targeting policymakers and industry leaders, our reports influence policy so as to positively impact our members. Examples of our industry reports include: o the annual Northeast Dairy Farm Summary o Agriculture: The Overlooked Economic Engine o Northeast Agriculture 2014: Insights and Perspectives Additional reports have focused on agricultural credit conditions, farm labor, CAFO regulations and drought impacts. • Business outlooks. Twice a year, Knowledge Exchange provides analysis on many agricultural sectors, including dairy, green, feed and grain. These reports also discuss common input costs, such as energy, fertilizer and labor.
Knowledge is power Access Knowledge Exchange at FarmCreditEast.com/KnowledgeExchange. Some content is restricted to Farm Credit East members and can be accessed by clicking on the Member Sign-In tab on our home page.
Your suggestions Please email suggestions to Chris Laughton, our director of Knowledge Exchange, for future Knowledge Exchange Partner articles or webinars: Christopher.Laughton@FarmCreditEast.com.
• Video series. We produce and post videos on issues facing Northeast agriculture and on how you can use Farm Credit East products and services to strengthen your business. You can find these videos on FarmCreditEast.com/ Videos or on Youtube.com/FarmCreditEast. • Live events. Periodically, Farm Credit East hosts seminars and other live educational events to cover areas of high interest to our customers. Last winter, we offered several well-attended seminars on the Affordable Care Act and its impact on agricultural employers throughout the Northeast. We record each of our seminars, so if you be unable to attend, you can listen at your leisure at FarmCreditEast. com/HealthcareResources.
2014 PersPectives Economic AnAlysis And PAPErs on Agricultur commErciA l Fishing And thE ForEst ProductsE, industry
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For staying current with must-knows of the ag industry, Knowledge Exchange has you covered. Check out the Farm Credit East website today and come back often for up-to-date, condensed information on trends that affect your business.
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11 Myths
about Northeast Farming: Busted by the 2012 Census of Agriculture By Jim Putnam, executive vice president
Today the American public seems to have elevated curiosity about farming, and that’s a good thing. They find some accurate information in the media but, unfortunately, they also hear a lot of misinformation. As someone who has spent most of his life on a farm or working for farmers, I am troubled that misinformation often creates a negative image of farmers. A lot of this misinformation comes from folks who don’t know better, but a fair amount also comes from those with an “agenda.” Every five years, the U.S. government conducts a Census of Agriculture. The recently released 2012 Census debunks many of these media myths. For this article, I reference census results for Farm Credit East’s seven-state region: New York, New Jersey, Maine, New Hampshire, Massachusetts, Connecticut and Rhode Island. For the most part, national statistics also support my conclusions.
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Wrong. 96 percent of farms have “50 percent or more ownership interest held by an operator and/or persons related by blood, marriage or adoption.” Many larger family farms are organized as partnerships, limited liability companies and corporations — a good business practice to gradually transfer management and ownership to the next generation.
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Agriculture would be better if commercial farms had not grown so large. Wrong. The growth trend in full-time farms is driven largely by two dynamics: 1. Farmers aspire to the same standard of living as we in the nonfarm sector, including nice homes, college educations, family trips and a comfortable retirement. 2. Farming is almost always a low-margin business that requires tremendous investment in land, equipment and livestock to operate profitably. With plentiful production as the general state of American agriculture, there is strong market pressure to become larger in order to maintain a decent standard of living.
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The family farm is a dying tradition and agriculture is dominated by “corporate farmers.”
Farming is dominated by “factory farms.”
Wrong. Virtually all farms meet the Small Business Administration definition of a small business ($9 million or less of gross sales). According to the census, 99.7 percent of Northeast farms have less than $5 million in sales and many of the remaining 0.3 percent are between $5 and $9 million. Full-time family farms have continually grown larger over the years, driven by the need to earn a standard of living similar to their nonfarm neighbors.
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Farmers depend on government payments to earn a living.
Wrong. In 2012, only about 19 percent of Northeast farmers received payments from the federal government at an average amount of just over $8,100. Most farmers are not eligible for direct commodity payments and many payments reimburse beneficial conservation and environmental investments.
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Family farming involves one family operating one farm.
Number of Households Sharing Net Farm Income of Operation
Wrong. This is the “Little House on the Prairie” myth! Many full-time farms involve multiple families and generations farming together within one business unit. For commercial-sized family farming operations of $500,000 gross sales or more, multiple households in the same operation is more the rule than the exception. The trend to multiple families farming together typically results in improved efficiency as various family members specialize in management roles and provide vital backup. Multigenerational businesses are the best way to transfer farming knowledge, responsibility and eventually ownership of farming assets from older to younger generations. These family farmers also enjoy substantial lifestyle benefits, such as attending their kids’ school events and spending an occasional weekend away from the farm.
Most farmers are old.
# of Farms
% of Farms
1
1,476
48.0%
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887
28.8%
3
432
14.0%
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141
4.6%
5 or more
140
4.6%
3,076
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# of Households
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Wrong. You may have read that the average farmer is 57.6 years old and we won’t have enough farmers to operate our nation’s farms in just a few more years. You would think most of our industry is just a few steps away from the retirement home! This is just not so.
The fine print in the census indicates that 57.6 is the average age of the “principal operator.” The actual census says it is the age of the “principal operator or senior operator.” “Average age of principal operator” is a fairly meaningless statistic for a farm operated by multiple families and generations. Since commercial farms account for about 70 percent of Northeast farm production and most have multiple generations, there is no imminent danger of “running out” of farmers in the foreseeable future.
In multigenerational farms, young family members often return home as employees from college or military and, over time, earn their way into farm management and ownership. Most farm transition consultants recommend a gradual process for growing into the
total farms
business that starts by transferring ownership when the next generation is in their 30s. (This is similar to nonfarm businesses where recent college graduates typically start in entry-level positions and grow into middle management during their 30s.) A healthy number of younger farmers work side-by-side dad and mom, and increasingly with grandpa on commercial farm operations. As employees, their ages are not captured in census statistics, again substantially biasing upward the oft-quoted average principal operator age. However, the census reported that about 21,671 Northeast farmers, or some 30 percent, are over 65. Some “over 65s” are highly valued members of multigenerational family farming operations. The majority is retired or semi-retired, and choose to continue living on the farm and farming on a limited basis because they enjoy it. One thousand dollars of gross sales annually ensures that the census counts them as farmers. As life spans increase, this expanding demographic significantly biases “average operator age” upward.
Too many senior farmers. Wrong. Some writers seem to view this substantial group of older farmers as a problem. Senior farmers should be regarded as having earned the right to retire as they see fit. They are a valued component of our farming community, often a major investor in their own family’s farming operation and an important source of rented land to other farmers. While staying involved in a scaled-back, post-retirement way may not be common in the nonfarm world, it is embedded in our farm culture. When I read somber discussions about sources of limited capital to agriculture, I find it remarkable that most fail to mention the important role of 65 + farmers in providing the necessary equity capital to agriculture. With a lifetime of accumulated farming equity,
this group is critical to financing their family’s middle and younger generations for success. Pundits often overlook the senior generation’s valued contributions. For example, most commercial family business transition plans involve the younger generation purchasing equity over time, providing the senior generation a retirement income while gradually transferring ownership. Many plans gift some farm assets from the senior to the next generation(s), consistent with federal and state tax provisions. Finally, in many multi-family farm businesses, upon the passing of the older generation, a significant amount of the estate may pass to the next generation through inheritance.
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No one gets started in agriculture anymore. Wrong.The census reports a significant rate of entry of new farmers into the industry:
years operating any farm
# of Farms
% of Farms
2 years or less
1,763
2.4%
3 or 4 years
3,229
4.5%
5 to 9 years
9,090
12.6%
10 years or more
58,065
80.5%
total farms
72,147
100.0%
With nearly one fifth (19.5%) of today’s farmers having entered the industry within the past nine years and an average of 1,248 new farmers per year in the most recent four years, this speaks to a continuing healthy influx of new farmers.
Farming is a man’s world with few women farmers.
Wrong. The census reports 16,348 female principal operators, or 23 percent of the total. The reality is that this statistic may be understated since spouses are often equal business partners, sharing substantial management responsibilities and ownership.
While not in the census data, the farm population mirrors evolving gender workplace roles to the nonfarm population. For Baby Boomers, dual careers are common in the farm population. In addition to couples who work together within a business, often one spouse works off-farm for regular paychecks and benefits. With Gen X and Millennials, a growing number of women farm while their spouses work off-farm.
This number substantially underrepresents the reality of “new talent” entering the industry since it includes only those who identified themselves as principal operators. Younger family employees in multigenerational commercial farms would add substantially to this number. (See Myth 5.)
Operating a small farm is a wonderful way to earn a living.
Farmers no longer own much of the land.
Wrong. Most small farmers are motivated by reasons other than earning a living from farming, such as lifestyle, passion for new ways of farming, supplementing nonfarm livelihoods and retirement. Also, young farmers often start small intending to grow into a larger operation that supports a fulltime standard of living.
Wrong. Northeast farmers own about 74 percent of land on which they farm and rent the other 26 percent, of which about 4 percent is rented from other farmers and 22 percent from nonfarmers. Farmers control the majority of their land base. Land rented from nonfarm owners is critical, because it enables many to leverage tractors and field equipment for additional production nearby their own farmland. Renting farmland helps young and beginning farmers get started until they have the experience, savings and credit history to qualify for mortgage financing.
The U.S. Department of Agriculture defines a small farm as having $250,000 gross sales or less. The census indicates that 35 percent of small farms operated in the black while 65 percent lost money in 2012. Put another way, the average small farm operated at a loss of $4,035 in 2012. This means that the operator’s standard of living, repayment of debt principal and/or investment in additional land or equipment came from nonfarm sources or healthy savings accounts.
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Conclusion
This is a great time in Northeast agriculture, full of optimism and promise for the future. While farming has never been an easy business, don’t fall for negative myths that make good headlines and handwringing. At Farm Credit East, we are positive about the future of Northeast agriculture and the thousands of successful family farm businesses that we serve. We are as proud to serve young and beginning farmers who keep the future of Northeast farming bright.
Sharing
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FCE employees invest in their local communities
In the spirit of agricultural cooperatives, Farm Credit East employees have been giving back to their local communities for almost 100 years. Here is a small sampling about how two employees help their county Farm Bureau organizations.
Meghan Rodwell, senior loan officer, Batavia, N.Y. Treasurer, Livingston County Farm Bureau “As the Livingston County Farm Bureau treasurer for the past four years, I’ve focused on ag education and promotion. For example, for their annual Foundation Feast West, I helped Sandy Prokop, director of the NYFB’s Foundation for Agriculture Education, raise sponsorships and product donations. Locally, I organized the Livingston County ‘I Love NY Agriculture’ coloring contest and volunteered as a guest reader at York Central School for Ag Literacy Week. “My biggest contribution has been as coordinator of the Livingston County Farm Fest, a one-day event to educate the nonfarm public and celebrate Livingston County agriculture. I’m proud to say that the event continues to grow each year. When I was first involved, it had just one $500 sponsor, but last year we raised almost $15,000 in sponsorships and product donations. We were also successful in forming a new partnership with a local car dealership that sponsored five billboards around Livingston County for the event. “My involvement with Farm Bureau has also led me to participate in other ag organizations, such as 4-H, the Genesee Valley Conservancy Finance Committee, the BOCES Ag Cluster Committee and the York Farmland Preservation Committee. “I volunteer to honor Gary Teel, a dairy farmer who taught me the power of educating the nonfarm public and especially children. I also do this for my own children, because I want them to understand where their food comes from, to love the land and to get involved in organizations that make a difference.”
Jean Gallagher, credit representative, Greenwich, N.Y. Board Member, Saratoga County Farm Bureau “As the Young Farmer & Rancher co-chair for Saratoga County, I plan events and encourage young farmers and industry personnel participation. In addition, I help with various fundraising events, such as New York Farm Bureau’s Foundation for Agricultural Education’s Feast East in eastern New York. “The NYFB Foundation for Agricultural Education’s mission is to educate nonfarm New Yorkers about agriculture, which the Foundation achieves by participating in Ag Literacy week and by providing farmers and others in agriculture with educational materials, farm tour guidance and activity ideas, such as a jeopardy-like kiosk that kids can play at trade shows and other events. “For Feast East, I gathered donations for ‘NY Collection’ raffle bags, which we filled with a huge variety of local and New York State agricultural goodies. Coworkers from my Greenwich Farm Credit East branch, including Tricia Lockwood, Erin Perkins and Susan Sloan, along with Farm Bureau staff from other counties teamed up to help with this worthwhile effort. “Meghan and I, along with our teams, send our thanks to many generous event sponsors. Through their generosity and our team’s efforts, I’m happy to say that Feast East and Feast West raised more than $25,000 for the Foundation for Agricultural Education.”
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Hit ting to a ll Fields
Coffee shop talk on financial management for 2014
Gary Bradley, Brian Monckton, Fred Morton, John Caltabiano and Mike Reynolds
By Gary Bradley regional manager, northern region
John Caltabiano regional manager, eastern region
Brian Monckton regional manager, western region
Fred Morton regional manager, Maine region
Mike Reynolds regional manager, southern region
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During a recent discussion over coffee, our senior management team used words like “exciting,” “bullish,” “great opportunities” and “accelerating rate of change” when the topic of financial management in 2014 came up. They along with our 21 branch office teams are excited about working with you to make the most of the following opportunities.
farm gate. Given weaker markets in a number of products, 2014 is a critical year to bring cost structure back into balance. The speed with which you implement cost rightsizing is a critical competitive advantage. If you still rely on your annual financial records to understand costs, it is time to implement a robust accounting system to accurately report monthly costs.
Cost management
Balance sheet management
For many producers, cost structures are at their all-time high, despite what we read about low inflation rates. For many livestock and poultry producers, lower feed prices take time to show up at the
2014 is a good year to position your balance sheet for profitability and flexibility before the next downturn. Some business owners depleted working capital as their industries hunkered down through
adversity and costs rose to record highs. Businesses in a growth spurt similarly find themselves on the short side of adequate working capital to assure timely payment, early payment discounts and flexibility in dealing with deferred maintenance. Industries that had been directly impacted by the 2007-to-2009 financial crisis often have deferred capital expenditures. While that was clearly a prudent strategy during the downturn, now that we have improv-
the increase, then staying the course probably makes sense. But if it would be a tough hit, then take a closer look at fixing the rate on some of your long-term debt. The good news is, right now, Farm Credit East has attractive fixed rate options. While we, like most observers, have been wrong about when interest rates will come off the floor, it seems likely that it will happen in the next year or two. Please talk to your Farm Credit East representa-
substantial addition on the farm market. Today, we see more businesses interested in other growth opportunities, such as: • Vertical growth in value-added: further processing or bringing heiferraising back home. • Internal efficiency: paying greater than normal attention to enterprises and/or products that may not adequately contribute to the total enterprise; dealing with outlier cost categories; giving up rented land that is too expensive to operate; or trying smarter-not harder managerial initiatives. • Collaboration and partnering: seeking opportunities to create synergies or sharing fixed costs for capital investments with other like-minded businesses. In short, measure, monitor and manage. And for retailers, couple the mindset of a high-touch retailer with the hardnosed efficiency of a manufacturer.
Laser focus on management
ing markets, 2014 may be the year to catch up on capital items critical to productivity and operational timeliness.
Variable versus fixed interest rates For the sixth consecutive year, interest rates remained historically low in 2013. No question about it, low variable rates helped Farm Credit East borrowers navigate through tough business conditions. However, don’t get lulled into believing interest rates will always stay this low. Ask yourself how 8 percent interest rates would affect your business. If your answer is your business can readily absorb
tive about fixed rate options.
Wealth preservation The rollercoaster ride of the past 10 years has caused many successful business operators to adjust their longer-term business view. Yes, they survived the toughest conditions that the market and the economy threw their way. And they are in good shape to go forward. But a growing number of farmer thought leaders view growth-risk balance in a different light. Through 2008, successful farm businesses took their next step through horizontal growth by buying the farm next door and building a new freestall barn or
Many business operators achieve a comfortable family living, reinvest in the future of the business and attract the next generation to the family business. Others struggle even in the up years so retirement and a sale of assets becomes their best option. Clearly management quality is a big differentiator in farming business success, even as quality resources, access to decent markets and regulatory impact are equal drivers. We encourage producers to learn during their off-season, participate in trade associations and take a challenging short course in professional improvement. In this complex, global business arena, assistance from outside professionals is even more critical, such as in agronomy, pomology, animal nutrition, accounting, business management, insurance or legal areas. Yes, their services come at a significant cost, but used correctly, they leverage and diversify your native skill sets.
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By Karen Murphy FP editor & vice president, marketing communications
Financial Partner Magazine Celebrating 26 Years of Showcasing Customers
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For 26 years, Financial Partner magazine has documented, celebrated and preserved the unique spirit of Farm Credit throughout the Northeast. Published since 1988, our customer publication celebrates the diversity of Northeast agriculture and the strength and success of farmers, the forest products industry and commercial fishermen. We’ve come a long way in 26 years, as you can see from our early covers, and the road ahead is inviting. Of course, you may ask why we overlooked our silver anniversary last year, a traditional time for celebration. The answer is easy: We had too much to say and simply ran out of space for this column! Financial Partner started as our answer to the loss of Farming magazine, a national publication in which we bought several pages of space to focus on Northeast stories and local branch office updates. Three times a year, more than 17,000 Farm Credit East customers and
friends receive our publication. We hope that as you flip through its pages, each issue gives you a sense of belonging to the Farm Credit East cooperative and you find the articles relevant to your business. At the beginning of the e-news-versusprint debate, we asked ourselves if an online magazine is more appropriate, but you clearly told us that you prefer print. For those who enjoy reading articles online, we showcase recent issues on our website and, from time to time, mail electronic copies to readers. For me, Financial Partner has been a labor of love. I’ve had the great pleasure to interview hundreds of customers for cover stories and hear your personal experiences about running your family businesses. Through hard work, intelligence and creativity, you’ve shared your unique way of tackling each business challenge head on. I admire your personal triumphs and steadfast focus on making your businesses the best they can be and I appreciate how
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our customers work long and hard every day to provide the highest quality food and fiber for American homes. I marvel at your love of agriculture. You are the lucky ones who get up every morning to a way of life that you treasure. I also respect your humility. Consistently every customer that I’ve interviewed has closed by saying, “That’s how I work. I don’t want anyone to think that I’m working better or smarter than any other farmer.” And, of course, I’ve had the pleasure to interview the industry’s best in credit, accounting, consulting, appraisal and crop insurance so I could share Farm Credit East’s tax, regulatory, risk, payroll, marketing and business operations tips with you. Through our column on Farm Credit AgEnhancement Grant recipients, we’ve shared stories about the wonderful work of agriculture’s advocates who promote our industry and educate nonfarm neighbors about the value agriculture brings to their lives. We hope we’ve provided a unique perspective for you. We’ve had fun celebrating the diversity of agricultural success stories across our states. And bringing you covers stories that we hope are relevant to you, such as “Cyber-security: How safe is your information?,” “Are you a strategic manager?,” “Facing up to Facebook” and “The Concordia Brings Economic Boon to a Seafaring Community.” We also hope that you’ve enjoyed CEO Bill Lipinski’s honest, sincere — and sometimes hard hitting — letters and that you’ve stayed current with the latest news from Capitol Hill by reading Senior Vice President Bob Smith’s Washington Update. Thank you for what you do and for sharing your stories with us. All of us at Farm Credit East are honored to work with you, the men and women of Northeast agriculture.
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washington Update Robert A. Smith Senior vice president for public affairs
Tax Extenders and Section 179 Expensing Going into this Congress in 2013, many congressional leaders had high hopes of approving major tax reform legislation. That won’t happen. Consideration of major tax reform and “politics-as-normal” delayed extension of a number of tax provisions that expired on December 31, 2013. It now looks as if Congress will wait until after the November elections to consider extending a number of tax provisions, including the renewable energy production and investment tax credit and Section 179, which allows businesses to expense (deduct immediately) up to $500,000. The Senate Finance Committee approved a two-year extension of more than 50 tax provisions, including Section 179 at $500,000 and the renewable energy credit, but a disagreement on amendments held up action by the full Senate. The House of Representatives approved legislation to make the $500,000 expensing allowance in Section 179 permanent, but did not address other tax extenders. The president opposed making this provision permanent. In the end, a compromise will be necessary. This lack of final action puts many businesses in a difficult situation, but the fact that these provisions expired in 2013 does not necessarily mean they won’t be available for 2014. In 2012, a number of tax provisions that expired in 2011 were retroactively extended. We have no guarantee this will happen, but it likely will be considered.
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Farm Bill Changes: FSA loan guarantees As part of the Farm Bill provisions, Farm Credit East supported modifications to the USDA Farm Service Agency loan guarantee program. Congressman Bill Owens (D-NY) introduced these changes, which were included in the Farm Bill.
A Letter from Congressman Bill Owens (NY-21) The recent enactment of the Agricultural Act of 2014, commonly known as the Farm Bill, is a victory for agriculture in our local communities and across the country. Not only does agriculture represent a significant percentage of our GDP, but an abundant local food supply ensures we do not become dependent upon foreign sources. Farm Service Agency (FSA) loans, which are authorized through the Farm Bill, are an important financing tool that can help local family farms to thrive. I recently authored legislation included in the Farm Bill (H.R. 1297) that expands the legal entities currently eligible for FSA loans. These provisions make eligible for FSA loans two specific types of multiple entity structures that are increasingly common among family farms and did not previously qualify:
• Today many family farms have both a farm ownership LLC and farm operating LLC to facilitate ownership of multiple family members. Previously, because the operator of the farm (the operating LLC) did not own the farm (farm ownership LLC), neither was eligible for an FSA loan. My provision allows an operating entity, as described above, to meet the owner operator requirements to be eligible for an FSA loan, so long as the owners of the family farm own 50 percent. • Farms operating with an embedded entity structure were also previously ineligible for an FSA guarantee. An embedded entity occurs when one entity is owned wholly or partly by another entity. My provision allows the use of embedded entities if at least 75 percent of the ownership interest of each embedded entity in the operating entity is owned directly or indirectly by the individuals who own the family farm. These important changes facilitate a more fluid federal program that recognizes that as family farming operations become more complex and involve multiple generations, USDA must have the flexibility to adapt to a changing marketplace. Representative Bill Owens United States House of Representatives New York’s 21 Congressional District
Meet Our 31 Scholarship Winners! Each Earned $1,500 Toward Higher Education Farm Credit East congratulates our 31 scholarship winners, all aspiring to make a difference in their agricultural communities. This year students earned a collective $46,500 in scholarships to help them on their way to becoming the Northeast’s future leaders. Our scholarship supports students with a diversity of backgrounds and agricultural career aspirations from across our seven-state territory. Congratulations to these deserving students and best wishes for a successful educational experience.
Connecticut
Lisa Dauten Litchfield, Conn.
Purdue University Major: Veterinary medicine Career path: Large animal veterinarian Since a young girl in 4-H, Lisa has raised dairy and beef cattle, goats, swine and chickens. She’s now a student at the College of Veterinary Medicine at Purdue University, focusing on dairy cattle herd health and preventative medicine.
Chelsea Kegler
Mansfield Center, Conn. Kansas State University Major: Animal science Career path: Farm manager Since the age of four Chelsea has raised Jersey cattle and Hampshire sheep, which she has branded as “Chelsea’s Blue Ribbon Lamb.” She is also active in her high school’s FFA chapter.
Jamie Knapik
Beacon Falls, Conn. University of Connecticut Major: Animal science Career path: Horse trainer and health inspector Jamie’s participation in her high school’s agriscience program and membership in FFA has inspired her to pursue an animal science degree, with the hopes of becoming a health inspector and owner of her own equine facility. Ma i n e
Nicholas LaJoie Van Buren, Maine
University of Maine Major: Computer engineering Career path: Agricultural technology engineering Growing up on a farm, Nicholas has experienced many aspects of agriculture, including the challenges, and hopes to use his degree in computer engineering to develop new technology that provides better solutions for the ever-changing agriculture industry.
Lucas Lamond Brewer, Maine
University of Maine Major: Forest operations bioproducts and bioenergy Career path: Forester/logging contractor/manager Lucas has been involved with forestry and logging activities for many years and, after earning his undergraduate degree, hopes to continue to earn his MBA and become a licensed forester in Maine.
Alexis McIlwain Portland, Maine
University of Connecticut Major: Pathobiology Career path: Marine sanctuaries and sustainable fishing Growing up in coastal Maine, Alexis learned the importance of the commercial fishing industry at an early age and through her career hopes to help keep fishing populations healthy and fishing communities viable for the future. Ma s s ac h u s e t t s
Kaitlyn Benjamin Charlton, Mass.
University of Massachusetts Amherst Major: Animal science Career path: Animal science teacher Through Kaitlyn’s experiences growing up on a farm, attending agricultural high school and participating in FFA and 4-H, she plans to become an agricultural educator to inspire children to become future agriculturalists, growing the industry that truly supports America.
Megan Bernard Taunton, Mass.
Cornell University Major: Veterinary medicine Career path: Large animal veterinarian After graduating from Cornell with both an MS and DVM degree, Megan intends to start an internship at a large animal clinic in the Northeast, ideally focusing on ambulatory medicine and neonatology, with the ultimate goal of one day owning her own large animal practice.
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Joseph Cecchi Agawam, Mass.
University of Massachusetts Stockbridge Major: Sustainable food and farming Career path: Bedding flower and vegetable farmer Growing up on his family’s farm, Joseph has experienced agriculture from seed to harvest and sale to consumers. Upon graduating, he hopes to continue this family business now in its fifth generation. N e w Ha m p s h i r e
Shannon Yeaton
N e w Yo r k
Kaitlyn Briggs Sherburne, N.Y.
Cornell University Major: Doctor of veterinary medicine Career path: Food animal veterinarian Although Kaitlyn did not grow up on a farm, she has come to love the ambulatory practice and after graduation hopes to work in an underserved area of the country where food animal vets are needed to keep the livelihood of agriculture alive.
Epsom, N.H.
Lindsay Chamberlain
William Woods University Major: Equestrian science Career path: Performance horse trainer/barn owner and manager After graduation, Shannon plans to work at a performance horse training farm to continue her education in training, conditioning and managing horses, with the ultimate goal of managing her own performance horse barn.
Cornell University Major: Plant science Career path: Agriculture research Having grown up on her family’s farm, Lindsay feels a connection to farmers as stewards of the land. Through her studies and future research, she hopes to help them make farming a safer and smoother job.
New Jersey
Jahvin Thomas
Cape May Court House, N.J. Salisbury University Major: Environmental sciences Career path: Agriculture Through work in his family’s greenhouses and with a commercial crabber, Jahvin has developed many interests in agriculture and hopes that majoring in environmental sciences will allow him to explore his opportunities in agriculture.
Kristie VonThun
Monmouth Junction, N.J. Delaware Valley College Major: Equine science and management Career path: Equine sport massage therapist Through 11 years as a 4-H member, including the honor of 4-H Equestrian of the Year, Kristie developed a passion for the equine industry and hopes to work in the New Jersey racing industry as a certified equine sport massage therapist.
Bona Yu
Wyckoff, N.J. Cornell University Major: Veterinary medicine Career path: Food production veterinarian Bona believes human health is intimately tied to animal health; therefore she hopes to use the skills learned with her DVM degree to work in impoverished areas, teaching locals how to properly care for animals and increase their productivity.
Wyoming, N.Y.
Andrew Coon Amenia, N.Y.
Cornell University Major: Animal science and agricultural engineering Career path: Animal scientist or agricultural engineer Andrew’s experiences growing up on his family’s dairy farm have inspired him to further research animal science, specifically dairy cattle, while also studying agricultural engineering. With this dual degree, he hopes to better integrate new technology with agriculture.
Mary Cope Homer, N.Y.
Onondaga Community College Major: Poultry science Career path: Poultry scientist Mary has had an interest in the poultry industry since the age of three. Through her studies, she hopes to achieve a graduate degree in poultry production or research, to ultimately become an important asset to the poultry industry and agricultural community.
Nicholas Finn Holland Patent, N.Y.
Cornell University Major: Environmental engineering Career path: Dairy farmer Through involvement in 4-H, Junior Dairy Leaders and other programs, Nicholas has been intrigued by agriculture’s many possibilities and after earning his degree, he intends to return to his family’s dairy farm to maximize its current efficiency.
Will Frazee Pompey, N.Y.
Cornell University Major: Animal science Career path: Dairy farm owner/manager With the knowledge Will has gained from his studies at Cornell and internship experience, he plans to return to his family’s dairy farm to focus on high milk production and quality, while also reconnecting the community to agriculture and the dairy industry.
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Justin Hanehan
Evan Nahor
SUNY Cobleskill Major: Agriculture business management Career path: Farm owner/manager After graduation, Justin plans to further his education by working off his family farm for a couple of years before returning and working his way toward a managerial position.
University of Maine Major: Bioproducts and bioenergy Career path: Logger Following graduation, Evan plans to work for an equipment manufacturer or logging company, with the ultimate goal of one day owning his own large-scale logging operation.
Kaitlyn Kelder
Casey Porter
Cornell University Major: Agricultural sciences Career path: Agriculture education teacher or consultant Growing up on an agritourism farm, Kaitlyn has learned the importance of agriculture and educating consumers about where their food comes from. She plans to continue this education effort through her career.
Cornell University Major: Animal science Career path: Dairy farm owner/operator Having been raised on a dairy farm and having raised Jerseys of her own, Casey plans to further her education in genetics or nutrition by working off the farm following graduation, with her ultimate goal to return to her family’s farm to focus on cow comfort.
Saratoga Springs, N.Y.
Accord, N.Y.
Erin Mattoon Locke, N.Y.
Cornell University Major: Biological sciences Career path: Field crop research and development Erin strives to earn a PhD in plant genetics, allowing her to pursue a career in research and development of field crops that sustain drought conditions. She hopes water-efficient crops will help to increase global food supply, contributing to a decline in world hunger.
Hewitt Meeder Sherman, N.Y.
Alfred State College Major: Mechanical engineering technology Career path: Agricultural equipment design and fabrication Since farming remains one of the top five most dangerous occupations, Hewitt hopes to use his degree to design and fabricate agricultural equipment and implements that will improve efficiency and safety in the agricultural industry.
Austin Milligan Piffard, N.Y.
Penn State Erie Major: Animal science Career path: Dairy farm owner/manager After graduation, Austin plans to return to his family’s dairy farm to become a future fourth generation owner. He will use the skills learned in college to incorporate more technology as well as to increase milk productivity and energy efficiency on the farm.
Michael Murphy Wayland, N.Y.
Cornell University Major: Agricultural science Career path: Farm consultant/owner With Michael’s degree and internship experience, he hopes to work with farmers to make them more efficient and profitable, while also owning his own farm to educate the public about where their food comes from.
Thendara, N.Y.
Watertown, N.Y.
Emily Richards Silver Springs, N.Y.
Morrisville State College Major: Agriculture business Career path: Agribusiness As the daughter of a third generation dairy farmer, Emily has been involved in different aspects of farming her entire life and looks forward to a lifelong career in agriculture.
Noah Seward Basom, N.Y.
Cornell University Major: Veterinary medicine Career path: Large animal veterinarian Having been around cattle his entire life, Noah aims to become a large animal practitioner, focused on dairy production medicine, to help farmers bring in the best genetics and higher reproductive success into their herds.
Victoria Subik Fonda, N.Y.
Hartwick College Major: Biology Career path: Large animal veterinarian Victoria has always loved working with animals, participating in 4-H, the American Texel Organization and the American Junior Angus Association. She plans to make a career of her passion, earning a doctorate degree in veterinary science to assist farmers in rural communities.
Cynthia Van Bourgondien Southold, N.Y.
Syracuse University Major: Business administration Career path: Agribusiness Cynthia essentially grew up playing, learning and working in her family’s greenhouse and after studying business administration while in college, she plans to return to those same greenhouses to continue her family’s business.
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FINANCIAL PARTNER is for the customers, employees and friends of Farm Credit East. Farm Credit East is a farmer-owned lending cooperative serving the farm, commercial fishing and forest products businesses in Maine, New Hampshire, Massachusetts, Connecticut, Rhode Island, New York and New Jersey. Part of the national Farm Credit System, Farm Credit East is a fullservice lender dedicated to the growth and prosperity of agriculture.
Farm Credit East 240 South Road Enfield, CT 06082-4451
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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: Karen Murphy, Editor, Farm Credit East, 240 South Road, Enfield, CT 06082-4451. CALL: 860.741.4380. E-MAIL: karen.murphy@farmcrediteast.com. Copyright © 2014 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.
Community Support NY Couple Earns 125th FarmStart Investment FarmStart’s 125th investment was to McKinzey Farm, a sheep dairy in Trumansburg, N.Y. For several years, owners Lauren and Kevin McKinzey, have raised a flock of 38 sheep (12 milking ewes), chickens for eggs and heritage breed hogs in the Ithaca area. As they look to expand their operation to provide sheep milk yogurt, cheese, lambs and pasture-raised freezer pigs for the surrounding community, they turned to FarmStart for financial assistance. “To diversify our products, we needed funds to build our creamery and expand our flock, but we didn’t have the financial capability for it,” said Lauren. “Having been farming for only a few years, we weren’t eligible for a traditional loan, so we turned to FarmStart. Together with our FarmStart advisor, we developed a business plan to help us grow our business into a profitable operation over the next five years.” “This investment is an exciting milestone for the program,” said Lynn Weaver, FarmStart program manager. “We initiated this unique program eight years ago to give new entrants into agriculture a healthy start. Each new investment continues to support our mission of a vibrant, entrepreneurial agricultural community in the Northeast.”
FarmStart invests working capital of up to $50,000 to help beginning northeastern farmer-owned businesses become operational. In addition, a FarmStart advisor helps participants achieve their business objectives. For more information, visit FarmCreditEast.com/FarmStart.
Kevin, Lauren and their daughter, Ada, McKinzey, of McKinzey Farm, at their sheep dairy in Trumansburg, N.Y., with their FarmStart advisor, Jess May, of Farm Credit East’s Cortland, N.Y. branch office.