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FarmCreditEast.com
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INSIDE News & Views 2 | CEO Letter 3 | Cover Story 4 | Honoring Northeast Agricultural Leaders 10 Carsada Dairy 12 | Kurtz Farms 13 | Washington Update 14 | Community Support 16 | Scholarship Winners 17
N EW &V IEW S S
FarmCreditEast.com
Welcome New Board Members Strong leadership is essential to your Board. In April, customermembers elected two new directors to the Farm Credit East Board.
NEW LOOK FarmCreditEast.com
James Robbins II, of Searsmont, Maine, was elected to a two-year term. James is president of Robbins Lumber Inc., a fully integrated log yard, sawmill, dry kilns and planer mill that produces 28 million board feet of Eastern White Pine. James Robbins II
Skip Hardie, of Lansing, N.Y., was elected to a four-year term. Skip is a partner of Walnut Ridge Dairy, LLC. The farm milks 1,400 cows and operates 2,000 acres. In other regions, Matt Beaton, of Wareham, Mass., and Doug Shelmidine, of Adams, N.Y., were reelected to four-year seats.
If you’ve visited FarmCreditEast.com lately, you may have noticed it has a whole new look. Farm Credit East launched a new website in June. The new and improved site still grants access to the same information, but we hope you’ll find it faster to access your account information and easier to navigate Knowledge Exchange Partner newsletters, reports and webinars. And it’s mobile friendly! So now you’ll be able to read your secure messages, documents and other information right from your phone, tablet or other mobile device. So when you have a few minutes, scan the QR code to get started!
Skip Hardie
In addition, two new directors were recently appointed to Farm Credit East’s Board. Peter Triandafillou, of Orono, Maine, joins the Board as an appointed customer director with forestry expertise. Peter is vice president of woodlands for Huber Resources Corp., a timber management firm managing 600,000 acres in seven states. Peter Triandafillou
Growing Talent at Farm Credit East We have an outstanding team at Farm Credit East, but are always seeking new talent to join us! Do you know someone who would be a great addition to Farm Credit East? Someone with the drive and passion to serve Northeast agriculture and rural communities? Direct them to FarmCreditEast.com/careers to view our open positions, or put them in touch with your local branch office. Even if we don’t currently have an open position, we’d love to get the conversation started.
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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 Chris Fesko, Andy Gilbert, Hank McPherson, Ann Hudson and Don White for their many years of dedicated service as directors.
Peter Barton
FARM CREDIT EAST • 100 YEARS STRONG
Peter Barton, of Poughquag, N.Y., was also appointed to fill a one year vacancy until the cooperative’s 2017 director elections. Peter is owner of Barton Orchards, a 122-acre agritourism farm operation with an offsite retail bakery. In addition to the recently elected members, the Board includes: Michael N. Brooks, Elmer, N.J.; Peter R. Call, Batavia, N.Y.; Tim C. Chan, Claremont, N.H.; Daniel J. Corey, Monticello, Maine; Laurie K. Griffen, Stillwater, N.Y.; Henry L. Huntington, Loudon, N.H.; Richard P. Janiga, East Aurora, N.Y.; Philip Jamie Jones, Shelton, Conn.; John P. Knopf, Canandaigua, N.Y.; Lisa P. Sellew, Lebanon, Conn.; and Diane Souza, Little Compton, R.I.
CEO’s MESSAGE
FARM CREDIT AT 100: FOCUSED ON CUSTOMER SUCCESS Bill Lipinski, CEO, Farm Credit East This summer, we honor our members’
read more about the half dozen factors
and assets tied up in farmland, timberland,
productivity, efficiency and drive to
that caused that crisis in this issue’s cover
fishing vessels, etc., agriculture businesses
succeed as we mark the centennial of
story, but of those, only two exist today:
need a lender just as specialized.
the Farm Credit System. The creation of
low net farm income and decreased exports.
Farm Credit East has the capital to
this System allowed for a different type
endure industry cycles and the tools
of lender — one owned by its customers,
to structure loans appropriate to the
expert in the industries served and
needs of agriculture, forest products and
committed to serving those industries. The Farm Credit System was initiated 100 years ago to fill a unique need, and we’re proud to have achieved and still operate according to that founding vision of customer-ownership and commitment to agriculture, commercial fishing and forest products businesses of all types and sizes. As we celebrate this milestone, we also celebrate the successful producers who have made the story of American agriculture a great one to share. As producers have improved efficiency and business practices to increase production, Farm Credit has evolved alongside them to
As we celebrate this milestone, we also celebrate the successful producers who have made the story of American agriculture a great one to share.
better serve their changing needs.
I look forward to the future of Northeast agriculture. Later in this issue, you’ll meet leaders who were recently recognized nationally for their efforts to shape the future of agriculture. Many of these honorees are young producers and most are working to tell agriculture’s story and educate people about farming practices. We’ll also announce this year’s 33 Farm Credit East scholarship recipients. Each year I glance through the hundreds of applications we receive and I am inspired by the ambitious youth that will soon be entering the industry. They are bright and forward-thinking individuals, and I think
As we look toward the future, we
we’ll be in good hands with them as our
plan to do the same. We’ll continue to embrace technology to better serve you
commercial fishing.
future leaders. Today’s producers are more informed,
As we close out our centennial year,
and to enhance our business consulting
better users of credit and are stronger
on behalf of all Farm Credit East staff, past
and other services focused on assisting
business managers. In many respects, you
and present, I’d like to thank you, our
farm business owners and managers
are the world’s best in agriculture. I am
customer-owners, for working with us
increase profitability.
confident in your resiliency to withstand
over the past century. We look forward to
current conditions.
continuing the relationship for generations
Some folks fear we’re entering a period similar to the 1980’s, but the circumstances just aren’t the same. You’ll
In such a specialized industry, with
to come.
irregular cash flow, weather dependency SUMMER 2016
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100
YEARS STRONG
A Farm Credit System for the agriculture, forest products and commercial fishing businesses of today and tomorrow As we mark the anniversary of the signing of the Farm Loan Act on July 17, 1916, we wrap up our article series on the evolution of the Farm Credit System over the past century. Before jumping into the events of the past 50 years that led to the System you know today, let’s touch on a piece of Farm Credit history that was recently unearthed (literally!), as it sets the stage for the past half-century and continues to have application to present times.
A GLANCE INTO THE FUTURE Over the past year, a number of events have been hosted to honor the System’s Centennial. One such event, hosted in Washington, D.C. this past February, opened a time capsule that had been buried during the System’s 50th anniversary celebration. Among
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FARM CREDIT EAST • 100 YEARS STRONG
C O V E R
the items revealed were documents from the first-ever loan made
concentration in areas more suitable for intensive farming.
by Farm Credit in 1917 and predictions from Farm Credit leaders
Over the past half-century, farm production has only continued to increase, with total Northeast ag production of $9.25 billion today.
about agriculture and financing conditions today. One prediction, specific to Northeast agriculture, came from the president of
The Farm Credit System: Proud Partner in Productivity with America’s Farmers & Ranchers 1916 to Present
the Farm Credit Banks of Springfield, Gordon Cameron — and his predictions were pretty spot on. The letter opens:
400
”
Cameron goes on to reflect on changes to Northeast agriculture over the Farm Credit System’s first 50 years. At the time of the System’s founding, 408,500 farms existed in the Northeast (including New England, New York and New Jersey). In 1966, that number had declined 69 percent to 124,500 farms. Today, there are 79,485 Northeast farms. The letter continues:
350
300
250
200
150
100
2012
2006
2000
1994
1988
1982
1976
1970
1964
1958
1952
1946
1940
1934
1928
0
1922
50
1916
The only thing certain about Northeastern agriculture during the next half-century is that changes will be many and far-reaching — probably even more dramatic than those of the past 50 years.
450
U.S. Agriculture Productivity
“
S T O R Y
Produced by James Putnam, Farm Credit East; Index 1916=100
Cameron then provides his outlook on the future of agriculture. His foresight sets the stage for many of the changes to the Farm Credit System to date. He predicted: “Even full use of present knowledge would bring a substantial increase in farm production. As one farmer described his farming, “Heck, I’m not farming half as well as I know how to.” The future will hold less chance of success for this type of farm operation, as technical progress further magnifies the emphasis on efficiency. Successful farming in the future increasingly will demand a high degree of training and skill on the part of operators, not only in production techniques but also in business and financial management. Many farms will be large enough and will involve sufficient capital investment to require division of responsibility for these functions.”
“Does continued decline in number of farms mean agriculture is gradually disappearing from the Northeast? Definitely not, if past performance is any criterion.
FINANCIAL SERVICES FOR FARM BUSINESS SUCCESS Around this time of the 50th anniversary celebration, North-
Despite the decline in farms, aggregate farm production
east agriculture was steady — it was “business as usual.” New
in the area actually increased about one-third.”
technology was introduced to enhance farmers’ efficiency. Farm
Cameron explains that many factors contributed to this increased production, including adoption of improved farming practices which stemmed from scientific progress in plant and animal breeding, nutrition and husbandry, plus greater
Credit was able to repay the last of the government capital in 1968, achieving full farmer ownership. Shortly after completing farmer ownership, the Commission on Agricultural Credit was established to plan for the System’s future.
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Middlefield, Connecticut dairy farmer and Farm Credit director,
This legislation was one of the most notable in the evolution
Julian B. Thayer, served as its chairman. This Commission drafted
of the Farm Credit System. Not only did it grant access to credit
recommendations for how the System needed to adapt to prepare
for other industries, such as commercial fishermen, lobstermen,
for the needs of agriculture in the future. These recommendations
custom applicators, large animal veterinarians and other farm
became the Farm Credit Act of 1971, which authorized:
related businesses, but it also enabled Farm Credit to provide
• Credit-related services, such as farm records, tax services
enhanced business services to assist farmers. This change was key
and business consulting.
to the continued success of American agriculture, forest products
• Expanded System lending to aquatic, rural housing and
and commercial fishing industries. This was just the beginning of tremendous technological
farm-related businesses. • Banks for Cooperatives to lend to rural utilities.
advancements to improve processes and efficiency. With enhanced technology, agriculture was becoming a more complex business. Just as Cameron predicted, the ability to use credit wisely was dependent on sound, progressive business management. Financial services from Farm Credit were helping farmers to successfully manage their businesses.
RESTRUCTURING FOR THE FUTURE In the mid-1970s, commodity markets sky-rocketed. Farmland prices were increasing and farmers were borrowing more money. Following the Federal Reserve’s change in monetary policy in 1979, interest rates increased dramatically, resulting in a farm commodity bust in the early 1980s. Ag credit conditions deteriorated, and by 1985 the Farm Credit System was facing an uncertain future. Not having access to the Federal Reserve as a back-up, Congress approved legislation in ’85, ’86 and ’87 to assist the Farm Credit System in developing a new path for success. The most notable was the Farm Credit Act Amendments of 1987, which reaffirmed the need for a Farm Credit System to serve the credit needs of agriculture and related industries. It authorized the federal government to invest up to $4 billion in capital to restore the System. Of this commitment, only $1.3 billion was used. It also allowed the System to streamline its structure. Eleven of the Banks for Cooperatives merged to become CoBank. The Federal Land Banks and Federal Intermediate Credit Banks merged to become Farm Credit Banks in 1988. It also provided for Agricultural Credit Associations (ACA), which the Northeast voted to become effective January 1, 1989. The ACA model enabled a holistic approach to extending credit, therefore enabling better customer service. It also provided the opportunity to become more efficient and more profitable. This, in turn, led to more competitive interest rates while building stronger capital and ultimately enabled paying patronage dividends. Finally, these amendments required associations to have an outside director to bring unique expertise to the Board of Directors. Today, Farm Credit East has three appointed directors — two outside experts and one forest industry expert. In the decades that followed, American agriculture and the Farm Credit System entered a period of rebuilding. The farm economy got healthier. Inflation and interest rates came down. There was a wave of mergers and consolidation across the System.
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FARM CREDIT EAST • 100 YEARS STRONG
C O V E R
S T O R Y
SALUTE TO THE MANY GENERATIONS OF NORTHEAST AGRICULTURE.
Farmer-owned boards of directors became more strategic, creditunderwriting was enhanced and technology improved. With improved structure and increased earnings, Farm Credit East and predecessor associations were able to begin paying patronage in 1995. Since inception, $597 million in patronage dividends have been paid.
COMMITTED TO THE NEXT GENERATION The early twenty-first century brought another golden era for
THE FARM CREDIT SYSTEM TODAY AND TOMORROW This brings us to present day and the 100th anniversary of the Farm Credit System. As we circle back to Gordon Cameron’s prediction, he writes: “If the changes are more dramatic than they have been the last 50 years, and I think they will be, it will be necessary for those who provide service to farmers to avoid
agriculture, with good prices, strong incomes and low interest
becoming institutionalized and set in their ways. The
rates. In 2005, Farm Credit East further affirmed its commitment
kinds of service structures that now exist may well have
to the next generation of agriculture by initiating the FarmStart
to be changed and those that can change in tone with the
program to assist startup farming ventures. The program provides
needs will be those that will survive.”
working capital investments and helps to develop business management skills of these new producers. 2008 brought another financial crisis, but one that the farm
This sentiment speaks to the evolution, and at times rebuilding, of the Farm Credit System over the past 50 years, and rings true for
economy, together with the help of the Farm Credit System, was
the System’s future. Farm Credit will continue to evolve and adapt
able to successfully withstand. While commercial banks and the
to best serve customer-owners.
economy struggled, the Farm Credit System had built enough capital to continue lending to agriculture “business as usual.”
The past is not the course for the future — the pace of change for agriculture and for our association will increase. Farm Credit
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East’s focus on technology to better serve customers, services to provide better information for managerial decisions, industry advocacy to help tell the story of modern agriculture and commitment to serve all parts of agriculture will help cultivate the success of agriculture, commercial fishing and forest products in the next 100 years.
RESOLUTION
The same tenets of customer ownership, industry expertise and commitment to customer success — the founding vision of the 1916 legislation — will drive Farm Credit East forward. And as we look to the future, we’ll close with the same foresight Cameron had 50 years ago:
“
We are confident of the future for Northeastern agriculture and look forward to serving the growing credit needs of farmers and their cooperatives more fully and effectively than in the past.
”
As the Farm Credit System marks the 100th anniversary of the Farm Loan Act of 1916, resolutions to commemorate the System’s centennial have been introduced in both houses of Congress, H. Res. 591 and S. Res 349. On the next page is the House Resolution, which commends the Farm Credit System and its cooperative owners for continued service to American agriculture and rural communities.
Farm Credit East Thanks the Current Northeast Co-Sponsors: Ayotte — NH
FARM CREDIT EAST•100 YEARS STRONG
Murphy — CT Shaheen — NH
Markey — MA
House of Representatives Connecticut Courtney Esty
New Jersey LoBiondo
FINANCIAL PARTNER
Collins — ME
Blumenthal—CT King — ME
New Hampshire Guinta Kuster
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Senate
New York Collins Gibson Hanna Katko S. Maloney Reed Slaughter Stefanik Tonko Zeldin
Maine Pingree Massachusetts Keating McGovern Rhode Island Langevin
114th CONGRESS 2D Session
H. RES. 591
COMMENDING THE COOPERATIVE OWNERS AND THE EMPLOYEES OF THE FARM CREDIT SYSTEM for their continuing service in meeting the credit and financial-services needs of rural communities and agriculture. IN THE HOUSE OF REPRESENTATIVES
January 28, 2016 Mr. Conaway (for himself and Mr. Peterson) submitted the following resolution; which was referred to the Committee on Agriculture
RESOLUTION COMMENDING THE COOPERATIVE OWNERS AND THE EMPLOYEES OF THE FARM CREDIT SYSTEM FOR THEIR CONTINUING SERVICE IN MEETING THE CREDIT AND FINANCIAL-SERVICES NEEDS OF RURAL COMMUNITIES AND AGRICULTURE.
Whereas the Farm Credit System was established by Congress through the Federal Farm Loan Act of 1916, signed into law on July 17, 1916, by President Woodrow Wilson, making 2016 the centennial anniversary of the founding of the cooperatively owned and operated Farm Credit System; Whereas recognizing that a prosperous, productive agricultural sector is essential to a free Nation, Congress declared through the Farm Credit Act of 1971, as amended, that the Farm Credit System be designed as a permanent means to support the well-being and prosperity of the Nation’s rural communities and agricultural producers of all types and sizes; Whereas Congress designed the Farm Credit System as a network of cooperatives, independently owned and controlled by its borrowers, responsive to their individual needs for credit and financial services and continually adapting to meet the changing needs of rural communities and agriculture; Whereas the Farm Credit System today plays a vital role in the success of United States agriculture and the economic vibrancy of rural communities throughout all 50 States and Puerto Rico, providing more than $210,000,000,000 in loans to more than 500,000 customers; Whereas the Farm Credit System actively supports the next generation of agricultural producers by annually providing billions of dollars of loans to young and beginning farmers and ranchers and through its ongoing financial support for organizations like 4–H and Future Farmers of America; and Whereas Congress has provided for the appropriate safety and soundness oversight of the Farm Credit System through the Farm Credit Administration, an independent Federal agency, whose operating costs are funded by the System and for the protection of investors in System bonds through the Farm Credit System Insurance Corporation funded by premiums paid by the Farm Credit System: Now, therefore, be it Resolved, That the House of Representatives— (1) commends the cooperative owners and the employees of the Farm Credit System for their continuing service in meeting the credit and financial-services needs of rural communities and agriculture; and (2) expresses its confidence and support for Farm Credit continuing its mission of providing reliable, consistent credit to the United States rural communities and agriculture into the future.
…
SUMMER 2016
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AGRICULTURAL LEADERS
FARM CREDIT FRE
As part of its centennial, the Farm Credit System launched Farm Credit Fresh Perspectives, a national search to honor one hundred individuals or organizations changing the face and future of agriculture to ensure thriving rural communities for years to come.
DALE-ILA RIGGS Stephentown, N.Y.
CHRIS FESKO Skaneateles, N.Y.
JESSICA ZIEHM Buskirk, N.Y.
Leadership (21 and up)
NORTHEAST
Agriculture Education and Community Impact
HONORING
Of the 1,100 nominations received, Farm Credit East was pleased to have thirteen Northeast leaders selected in the top 100. We are delighted to honor these leaders who are helping to define the future of rural communities and agriculture. This honor recognizes their contributions to a vibrant future for rural America.
Dale-Ila is a first generation farmer who built a thriving 230-acre berry, vegetable and cut flower operation called The Berry Patch. She was among the first in the U.S. to use high tunnels for raspberry and winter greens. Currently serving as president of the New York State Berry Growers, she was instrumental in securing funding to control the Spotted Wing Drosophila (SWD), a crop-damaging fruit fly. Her inspiration: I’m an advocate for working with legislators to create stable funding to invest in applied agriculture research — that is where our future will be created.
Chris, along with her daughter and son-in-law, operates Fesko Farms, Inc., a 600cow dairy. Chris’ “On the Farm” video series began after someone asked to take a picture of Chris’ cow, but was pointing to a horse. This series has won eight Parents Choice Awards. Chris also started the Discovery Center where she’s hosted thousands of students to teach them problem solving using farm examples. Her inspiration: I wanted to help farm kids feel good about growing up on a farm and inspire non-farm kids to want to grow up to be farmers.
Jessica is executive director of the New York Animal Agriculture Coalition (NYAAC), a farmer-led organization supporting New York animal agriculture. She initiated and coordinates the Dairy Cow Birthing Center at the New York State Fair. Roughly 250,000 people visit the exhibit each year to learn about the dairy industry from dairy farmers and industry representatives.
HENRY BYMA Wantage, N.J.
CHARLES CURRIE Raynham, Mass.
JIM HYLAND 10
New Paltz, N.Y.
Beginning Farmer or Rancher Achievement
Her mission: Help others understand farmers and the work they do to produce a safe and wholesome product.
Henry, a partner in By-Acre Holsteins, was named the 2015 New Jersey Outstanding Young Farmer and is one of the Outstanding Farmers of America top 10 National Outstanding Young Farmers. As the third generation of his family to farm in America, he is committed to the success and efficiency of his dairy and embraces technology’s role in the future of agriculture. His motivation: To teach the next generation to lead with professionalism and integrity, to be honest businessmen and good stewards of the land and animals.
Chuck Currie founded Freedom Food Farm in 2012 to supply the local community with fresh, healthy and affordable meat and produce year-round. The farm operates under the Community Supported Agriculture (CSA) model, allowing community members to purchase directly from the farm and promoting transparency between farmers and consumers. His goals: Meet the growing demand for healthy food year-round and help the community to further recognize the value of farmers, farms and farmland.
In 2006 Jim Hyland founded Winter Sun Farms with the notion of making local food available all year long. He began working with local farms to freeze their produce and distribute through a winter CSA. This past winter Jim formed The Farm Bridge, which works with more than 60 regional farms to preserve their harvests. His inspiration: I was inspired by the food, but moved to action by the farmers and workers who were growing it.
BILL LIPINSKI Hampden, Mass.
JOHN LOMBARDI, JR.
Financial Stewardship
ESH PERSPECTIVES As Farm Credit East’s CEO, Bill has been an integral contributor to the success of the association and for Farm Credit nationally. He has implemented multiple programs to further the success of young, beginning and veteran farmers and has been a proponent of local, regional and national stewardship initiatives. His motivation: I wanted to make a difference in Northeast agriculture, and the various stewardship and new farmer initiatives will hopefully make a lasting contribution.
John grew up on a small poultry farm in Connecticut. With a former classmate, he expanded Southern New England Eggs into a diversified operation. He was also instrumental in the development of the Eggland’s Best brand. Through his service on Farm Credit Boards, John worked to create a strong financial institution that understood and supports farming.
The Search is On!
Waterford, Conn.
His motivation: In my business and through my Farm Credit involvement, I have been passionate about promoting efficiency and setting goals to enhance the industry.
FERNAND “CHIP” PAILLEX
In 2002, Chip and his daughter founded America’s Grow-a-Row (AGAR) in their backyard garden. Today, AGAR grows produce on over 250 owned acres and since its founding, has donated more than 4.9 million pounds of produce, including more than 1.2 million pounds last year. His goal: AGAR hopes to continue to build upon the produce we plant, harvest and donate to those faced with hunger and to expand this model nationally.
LEVI CAHAN Whitehall, N.Y.
LILAC HEDGE FARM Berlin, Mass.
Rural and Urban Connection
Pittstown, N.J.
Sackets Harbor, N.Y.
Ryan MacKay and Tom Corbett established Lilac Hedge Farm in early 2011 to provide local, sustainably and responsibly raised meats to consumers. Today, Lilac Hedge Farm operates on 550 acres. The farm markets its products through its own Community Supported Agriculture (CSA) program and through farm stores. Their inspiration: The reward of living a fulfilling life, preserving open space, providing jobs to our local community and putting fresh local food on our consumers’ tables.
Her inspiration: The smiles and awe on the children’s faces when they see a calf being born; likewise, the nodding heads of adults when they see how well our animals are cared for. Sustainability and Natural Resources
Gloucester, Mass.
His inspiration: My New York City customers who want to be educated about their food. I hope that my work will help to strengthen the agricultural industry by encouraging others to understand and support agriculture.
Farmer and entrepreneur Nancy Robbins has devoted nearly 30 years to educating the public about agriculture through Old McDonald’s Farm, which hosts more than 1,000 visitors per day during the busy season. She is also part-owner and operator of the North Harbor Dairy and Robbins Family Grain Company.
NANCY ROBBINS
JAMES HARRISON
Levi is a high school agriculture teacher and owner of Rising Sun Farm. He teaches animal, equine and plant sciences and agricultural mechanics and broadcasts these classes state-wide to classrooms that would otherwise not have access to agricultural education. He’s also chair of the New York State FFA Foundation board.
James is the executive director of The Food Project (TFP), a non-profit that engages young people in sustainable agriculture and creates improved access to fresh, locally grown food in low-income areas. James and TFP have been leaders in creating innovative programs for affordable produce access. His inspiration: Bringing together diverse groups of youth and adults in our communities to help support the economic development of rural and urban economies through food.
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Carsada Dairy is a fourth generation dairy in Malone, NY.
Teams of Experts Focused On
YOUR SUCCESS
Carsada Dairy is a fourth generation dairy in Malone, NY. The farm operates 3,000 acres and milks 1,500 cows. Owners David and Kristine Moore have built a strong relationship with Farm Credit East to help position their business for continued success. Just last year, they worked with Farm Credit East to complete an expansion project to enable them to milk 2,200 cows. Today, they look to Farm Credit East for their credit, tax, record-keeping and payroll needs, as well as participate in the annual Large Dairy Benchmarks program. “We really appreciate Farm Credit East’s knowledge of the ag industry,” said Kris Moore. “The team we work with at Farm Credit East has a more specific scope of our business and is able to provide a full picture, which enables us to make informed decisions.” The Moores have especially benefited from their records relationship. “It serves as our barometer,” said Kris. “Mary Beth, our records specialist, works in the industry every day and meets with us bi-weekly to keep us up to speed.
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FARM CREDIT EAST • 100 YEARS STRONG
“She understands the industry and can offer advice to help us improve or brainstorm new ideas. This relationship is invaluable when we are so busy just keeping up with the day-today, week-to-week tasks,” Kris continued. With this relationship in place, Carsada Dairy continued to grow. Once they surpassed ten employees, their payroll got complicated. “I didn’t want to spend all my time keeping up with the changing payroll rules and regulations. I wanted to hire someone who knew what they were doing,” said Kris. Their team in Farm Credit East’s Potsdam, NY office was the natural choice. Now their three sons are returning home from college and as this next generation enters the business, they’re again turning to their trusted team at Farm Credit East to start transition planning. “Each of our sons brings a different talent to the business, and we’re excited to get started,” said Kris. “We
Business Services Under One Roof
know Farm Credit East will make the process easy.”
The Kurtz family operates Kurtz Farms, a successful wholesale greenhouse business located in Cheshire, Conn. When the farm’s accountant moved to Florida a few years back, they were in need of someone to take over their records, but didn’t want the burden of bringing an accountant up to speed on the intricacies of their agricultural business. At the same time, they were in search of a new payroll provider since their existing payroll service didn’t fully understand farm payroll. They turned to Farm Credit East.
A SEAMLESS TRANSITION Today, Kurtz Farms uses Farm Credit East’s payroll, record-keeping and tax services. Earl has been pleased with the relationship he’s formed with Farm Credit East. “It’s been great to work with folks who understand what a farm is all about and how accounting principles apply to agricultural products,” he said. “I can ask questions and they can provide informed recommendations.” As he looks toward the future, he foresees working with Farm Credit East to evolve the business. “It’s helpful to keep all of these services under one roof,” Earl continued. “Through the relationship we’ve built, we can identify needs or opportunities for improvement in our business, and we can work with Farm Credit to get it done.”
The Kurtz Family
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WASHINGTON Update Tom Cosgrove Senior Vice President for Public Affairs
Election Year Agricultural Issues
H H H H H H H H H H H H H H H H H H H H H H H H H H H H H H H H H H H H H H H H H H H H H H
More than Meets the Eye There has been little debate
agreement was signed in February 2016
bill, so any differences would have to be
specifically about agricultural policy in
after five years of negotiation, however
negotiated in conference committee before
the Presidential campaign this year and it
the pact will still need to be approved
any bill goes to the President. While the
has been similarly quiet on the legislative
in Congress and most believe a vote will
Vermont law takes effect July 1, the Vermont
front in Congress. There are still important
not occur until 2017. The TPP agreement
attorney general has indicated enforcement
issues in both arenas and Farm Credit
includes the United States and 11
actions won’t be taken before 2017.
East is also tracking regulatory actions by
countries: Australia, Brunei, Canada, Chile,
Executive Branch agencies.
Japan, Malaysia, Mexico, New Zealand,
AGRICULTURAL POLICY AND THE PRESIDENTIAL ELECTION
Peru, Singapore and Vietnam. Most
relating to the Farm Credit System,
Republicans and President Obama support
although the House and Senate Agriculture
There are many issues which may not
the agreement. Farm groups, including
Committees held hearings on the Farm
be traditionally thought of as “agricultural,”
the National Milk Producers Federation,
Credit System in December and May,
but are still important to agricultural
are generally supportive of the agreement.
respectively. The Senate hearing also
producers. The outcome of both the
The presumptive nominees of both major
featured testimony on the difficult
Presidential and Congressional elections
parties have stated their opposition.
conditions in many agricultural sectors.
could have a significant impact on two of
CONGRESS
them: immigration reform and trade. ★★Agricultural
Labor, Immigration Reform and Enforcement
labeling
In March the Senate rejected
Credit System
Currently there are no proposals
We continue to seek support for H. Res. 591 and S. Res. 349, the resolutions to commemorate the Farm Credit
Agriculture Committee Chairman Pat
System centennial. Currently there are
Roberts’ GMO labeling bill, which would
166 cosponsors in the House and 57
top legislative priorities. We don’t expect
have prohibited states from enacting their
cosponsors in the Senate. We’re grateful
legislative activity on immigration reform
own mandatory labeling laws. Senator
for the support from the 26 members
this year, but there is some preparation for
Roberts and Ranking Member Debbie
of the Northeast delegation who have
2017, which will depend on the outcome
Stabenow have reached a compromise on
cosponsored the House or Senate
of the November elections.
a bill, which is supported by the National
resolution.
Farm labor is one of Farm Credit East’s
On the regulatory front, immigration
Council of Farmer Cooperatives (NCFC).
enforcement activity is always a concern
The bill preempts state laws and requires
★★Crop
Insurance/Appropriations
While there are no active proposals
and frustrations continue for ag employers
some mandatory disclosures of GMO
pending in Congress, proposed cuts to
who use the H-2A program to hire
ingredients, though not enough to satisfy
crop insurance could arise during the
seasonal workers.
many labeling proponents. Supporters are
appropriations process just as they did
seeking Senate passage in early July. The
during the budget negotiations at the
House has passed its own GMO labeling
end of 2015. Farm Credit East’s position
★★Trade
The Trans-Pacific Partnership (TPP) 14
★★GMO
★★Farm
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H
H H H H H H H H H H H H H H H H H H H H H H H H H H H H H H H H H H H H H H H H H H H H H H H H H H H H H H H H
is that any proposed changes should be
stay, meaning the EPA and the Army Corps
considered as part of the next Farm Bill
cannot enforce the rule for now.
debate and not part of the appropriations
★★Food
process.
(FSMA)
The tax and spending agreement
Safety and Modernization Act
The Food and Drug Administration
passed in December 2015 funds the federal
(FDA) has released final regulations for
government through September 30, 2016.
six of the seven areas to implement the
At the writing of this column, only three of
provisions of the FSMA which was signed
the twelve fiscal year 2017 appropriations
into law in January 2011. The produce
bills have passed both houses and none
safety rule is the primary one that could
have gone through conference committee
affect producers. Among the changes are
or been signed into law.
increased recordkeeping, agricultural
Congress will be on an extended recess starting before the mid-July Presidential conventions through Labor Day. With
water testing and rules regarding the application of biological soil amendments. There are exemptions for smaller
very few legislative days left this year, it
farms and phase-in periods of varying
may be difficult for Congress to complete
length depending on an operation’s size.
the process for all twelve bills, which
Farm Credit East hosted a webinar on the
will likely require an omnibus spending
produce rule and will continue to keep
bill to keep the government funded past
members informed on new developments.
September 30. While passing those bills has been contentious the last several years,
★★Department
of Labor Overtime Rule
In May, the Department of Labor
it is doubtful that Congress will have the
finalized its new overtime rule scheduled
appetite for a budget showdown with
to take effect in December. There is a
the President just before the November
Congressional review period before it
elections.
takes effect. Bills have been introduced
REGULATORY ISSUES
to block the measure, though they are
★★Environment
— WOTUS
While there are a number of environmental issues that could affect Northeast producers, the Waters of the United States (WOTUS) rule is one of the top concerns. The revised regulation was finalized in 2015 and broadens the interpretation of waters that come under the jurisdiction of the Clean Water Act. Farm Credit East and hundreds of farm organizations strongly opposed and urged withdrawal of the WOTUS rule in the open comment period held in 2014. Last year, the U.S. Court of Appeals for the Sixth Circuit issued a temporary
unlikely to pass. The rule makes a number of modifications related to determining which employees are exempt from overtime provisions, but the primary change is increasing the salary threshold from $23,400 to $47,476. During the proposed rule’s comment period, Farm Credit East, along with groups like National Council of Farmer Cooperatives (NCFC) and the National Council of Agricultural Employers, expressed concern that the impact of the dramatic increase
Farm Credit East held a webinar in June on this topic.
CONCLUSION While there are no major headlines in agricultural policy this election season, there’s still plenty of activity. The November elections may result in a change in the current direction in some key policy areas, but in the meantime, we will continue to monitor what’s happening in Congress and on the regulatory front, while some in Congress are starting to think about the next Farm Bill.
in the minimum salary threshold in the proposed rule wasn’t properly analyzed.
SUMMER 2016
15
Farm Credit East Commits $100,000 to Support Agricultural Education Farm Credit East recently announced a $100,000 commitment to support the development of a new agricultural business curriculum and to provide scholarships for agriculture teachers. This contribution is in honor of the Farm Credit System’s Centennial year. “As we celebrate the centennial of the Farm Credit System we are looking towards the future. This investment delivers on that focus through programs to support the next generation of agricultural leaders,” said Lisa Sellew, Farm Credit East director and chair of the Board’s AgInitiative Committee.
Pictured left to right: Lisa Sellew, Farm Credit East director, Board AgInitiative Committee chair and owner of Prides Corner Farms in Lebanon, Conn.; Nancy Trivette, Agricultural Education/CASE New Jersey program leader; Shari Lighthall, New York State Agricultural Education & Outreach program director; and Dr. Dan Jansen, Curriculum for Agricultural Science Education (CASE) project director.
Half of the funds are committed to the development of an agricultural business course of the Curriculum for Agricultural Science Education (CASE), a project of the National Association of Agricultural Educators. CASE courses integrate science, technology, engineering and math (STEM) concepts with hands-on, inquiry-based learning.
THE TEACHERS RECEIVING SCHOLARSHIPS INCLUDE: ✐✐Kaylie
Ackerly, Spencer-Van Etten Central School, NY
✐✐Crystal
After an introductory course, students specialize in tracks for animal or plant science, power and technology and natural resources. Farm Credit East’s funding will help to develop a new track in agricultural business. Since 2009, CASE has certified 1,134 teachers from 40 states, including 47 teachers from the Northeast states Farm Credit East serves. An additional $50,000 will go toward educator scholarships. To date, Farm Credit East has awarded $14,950 in scholarships to support the attendance of 15 educators to CASE programs. Eleven of the teachers will attend the Introduction to Agriculture, Food and Natural Resources (AFNR) institute. Other teachers will be attending Agricultural Science – Plant, Agricultural Power
Aukema, Oxford Academy and Central School, NY
✐✐Nicholas
Bodnar, Rondout Valley Central School, NY
✐✐Rebecca
Cossa, John Bowne High School, NY
✐✐Johanna
Fox-Bossard, Hamilton Central School, NY
✐✐Forrest
Hess, Letchworth High School, NY
✐✐Rachael
Humphrey, Preservice Teacher-SUNY Oswego, NY
✐✐Pebbles
Lacross, Bloomfield High School, Conn.
✐✐Deanna
Miller, Woodstown High School, NJ
✐✐Paul Perry,
Vernon-Verona-Sherrill Central School, NY
and Technology, Natural Resources and Ecology and Agricultural
✐✐Laura
Pinhas, Sussex County Technical School, NJ
Research and Development.
✐✐Christopher
Smith, Oppenheim-Ephratah-Saint
Johnsville High School, NY ✐✐Nicole
Smith, Cumberland Regional High School, NJ
✐✐Sara Tuthill, ✐✐Gleason 16
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Vernon-Verona-Sherrill Central School, NY
Walley, Chateaugay Central School, NY
Meet Our 33 Scholarship Winners! Each Earned $1,500 Toward Higher Education Farm Credit East congratulates our 33 scholarship winners, all aspiring to make a difference in their agricultural communities. This year students were awarded a collective $49,500 in scholarships to help them on their way to becoming the Northeast’s future leaders. Our scholarships support 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
MASSACHUSET TS
Benjamin Henry
Harrison Bardwell
SUNY Cobleskill Major: Agricultural engineering Career Path: Orchard manager/owner Raised on his family’s orchard, Ben aspires to return home after graduation to maintain their farm’s machinery and someday run the operation.
University of Massachusetts Major: Sustainable food and farming Career Path: Farm owner Harrison aims to promote sustainable agriculture while growing his seven-acre produce farm.
Wallingford, Conn.
Emily Jacoboski Willington, Conn.
University of Massachusetts Major: Animal science and management Career Path: Farm owner Emily’s interest in farming and agribusiness has inspired her future plans to run a livestock and produce farm and become involved in sustainable agriculture.
Shelby Jacquier East Canaan, Conn.
Cazenovia College Major: Equine business management Career Path: Agribusiness Shelby is proud to be a fourth-generation farmer and hopes to fulfill her lifelong dream to own and operate an equestrian training facility and show barn.
Amy Pruner Newtown, Conn.
University of Connecticut Major: Equine science Career Path: Equine farm owner and trainer Amy’s love for horses has inspired her goal to own and operate her own horse farm to teach students how to ride and care for horses through hands-on learning.
Hatfield, Mass.
Brianna Jarvis Marshfield, Mass.
University of Maine Major: Animal and veterinary sciences Career Path: Large animal veterinarian Brianna’s care for animals started at an early age. She plans to work as a large animal veterinarian at an established practice before starting one of her own. MAINE
Madeline Good Monticello, Maine
University of Maine Major: Agribusiness administration and sustainable agriculture Career Path: Farm manager/owner Madeline is eager to return home after graduation to contribute her education and experience to her family’s potato farm.
Aiden Heikkinen Paris, Maine
University of Maine Major: Forestry/surveying engineer Career Path: Consulting forester/surveyor Aiden plans to become a certified forester and get his surveying certification with the hope of starting his own business.
SUMMER 2016
17
Elliott Pendleton
Melanie Mayhew
University of Maine Major: Animal science and education Career Path: Agricultural education Elliot’s agricultural education involvement has inspired her goal to implement an agricultural therapy program for youth with special needs.
Delaware Valley University Major: Food science Career Path: Food scientist Future Farmers of America (FFA) sparked Melanie’s passion for food science and her education has solidified her eagerness to join the field after graduation.
Rockport, Maine
Elliott Sanders Orono, Maine
N E W YO R K
University of Maine Major: Forest resources Career Path: Forest products research assistant Elliott’s master’s project utilizes nano scale wood fibers in commodity plastics for 3D printing. He aims to start a small business that utilizes forest resources in an environmentally friendly way.
Rosemarie Andrews Wading River, NY
NEW HAMPSHIRE
University of Connecticut Major: Agriculture and natural resources Career Path: Farm manager As a seventh-generation vegetable grower, Rosemarie is eager to return to Long Island after graduation to help her family’s and other farms prosper.
Emily Gibson
Danielle Angell
University of New Hampshire Major: Medical and veterinary sciences Career Path: Animal laboratory diagnostician Managing her own flock of sheep taught Emily the importance of animal welfare and disease prevention. She plans a career in animal diagnostics.
Morrisville State College Major: Dairy science/agricultural business Career Path: Agribusiness With her passion for dairy cattle genetics, Danielle hopes to help farmers better their herd’s genetics through a career as an A.I. sales representative.
Christian Stock
Alicia Chisholm
University of Maine Major: Forestry/survey engineering technology Career Path: Private consulting forester Christian plans to use his knowledge of forestry and surveying to become a private consulting forester.
Cornell University College of Veterinary Medicine Major: Production animal medicine Career Path: Large animal veterinarian Alicia looks forward to using her education and internship experience to provide the highest quality of animal care.
Lee, NH
Tilton, NH
NEW JERSEY
Mikayla Fulper Lambertville, NJ
Pennsylvania State University Major: Animal science Career Path: Farm owner With her education and experience on technologically advanced farms, Mikayla plans to introduce milking robots on her family’s dairy farm.
Maiya Gibbs Andover, NJ
Cornell University Major: Agricultural sciences Career Path: Crop consultant and agronomy research As a sixth-generation farmer, Maiya hopes her passion for agriculture and food security will help in her pursuit to fight global hunger.
18
Bridgeton, NJ
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Cortland, NY
Carthage, NY
Samantha Curtis Canton, NY
Cornell University Major: Agricultural education and business Career Path: Agricultural teacher and horse farm owner Growing up in the agricultural community developed Samantha’s work ethic and leadership skills. She hopes to return to her high school as an agricultural teacher.
Courtney Dearnley Copake, NY
Cornell University Major: Animal science Career Path: Dairy consultant Through her involvement in agricultural organizations, Courtney realized her passion for agriculture at an early age. She plans a career in the dairy industry to support and improve dairy operations.
Paige Demun
George Lamb
Cornell University Major: Animal science Career Path: Large animal veterinarian Paige’s love for dairy cows has inspired her to pursue a career as a large animal veterinarian and eventually return home to her family’s farm.
SUNY Cobleskill Major: Animal science/dairy production and management Career Path: Dairy cattle genetics Growing up showing dairy cattle sparked George’s interest for animal genetics. He looks forward to working with dairy producers to select for the healthiest, most productive traits.
Troupsburg, NY
Jared Dueppengiesser Perry, NY
Cornell University Major: Animal science Career Path: Farm manager/owner With his education and experience, Jared aspires to grow and strengthen his family farm’s competitiveness in the challenging dairy industry.
Harley Hancock Carthage, NY
SUNY Cobleskill Major: Agricultural business Career Path: Farm manager/owner Harley grew up loving agriculture and hopes to bring her passion for the dairy industry back to her family’s dairy farm to diversify and grow the operation.
Corrigan Herbert
Buskirk, NY
Corey Marshman Oxford, NY
Morrisville State College Major: Agricultural engineering Career Path: Farm owner A seventh-generation farmer, Corey’s upbringing instilled a sense of pride and determination to continue his family’s farm after graduation.
Brittney Noto Delevan, NY
Morrisville State College Major: Agricultural business development Career Path: Agricultural consultant Brittney’s goal is to help farmers become more profitable, efficient and competitive in the dairy industry.
Fillmore, NY
Will Raes
Finger Lakes Community College Major: Viticulture and wine technology Career Path: Viticulturist Corrigan hopes to become a viticulturist, focusing on grape production and disease prevention with the goal of owning her own vineyard.
Geneva, NY
SUNY Cobleskill Major: Agricultural business/diesel technology Career Path: Farm manager/owner With the mechanical skills learned in college, Will plans to continue his family’s fourth-generation farm.
Allison Herrick
Gabriel Rater
Cornell University Major: Dairy science and genetics Career Path: Dairy geneticist Allison’s involvement with 4-H and other agricultural associations has inspired her to pursue a career in agriculture advocacy and to continue work with dairy cattle.
SUNY Cobleskill Major: Agricultural business Career Path: Farm owner and ag educator With his love of agriculture developed on his family’s farm, Gabriel hopes to help underdeveloped countries grow food productively and sustainably.
Bliss, NY
Mary Kennedy Mount Vision, NY
Virginia Tech Major: Dairy science Career Path: Large animal veterinarian Owning a calf and 4-H involvement inspired Mary to pursue a career in agriculture. She hopes to help farmers be successful in herd health and management.
Jennifer King Waddington, NY
Cornell University Major: Animal science Career Path: Agribusiness Jennifer has a deep passion for the dairy industry and looks forward to a career working with farmers to help them achieve their goals.
Sherman, NY
Dale Wickham Victor, NY
Cornell University Major: Applied economics and management Career Path: Farm owner Dale knew agriculture would always be a part of his life. He plans a career in agribusiness and to one day run his own farm operation.
To be a candidate for a 2017 scholarship, contact a Farm Credit East branch office or visit FarmCreditEast.com. Applications will be available in January 2017.
SUMMER 2016
19
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: Kristie Schmitt, Editor, Farm Credit East, 240 South Road, Enfield, CT 06082-4451. CALL: 860.741.4380. E-MAIL: kristie.schmitt@farmcrediteast.com. Copyright © 2016 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.
PHOTO CONTEST Upload your best shots to our website. Help us fill Farm Credit East’s Agricultural Views 2017 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 2017 Calendar and also earn you a
$100 cash prize! 14 photos will be selected for a $100 cash prize each. Submission deadline: July 31, 2016. Winners will be contacted by: October 16, 2016
NEED CREATIVE INSPIRATION? SEE FARMCREDITEAST.COM/CALENDAR