Rural Scene
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L I K E M A N Y P OU LTRY G ROW ERS , THE DeSA LVO S WERE FORCED TO RETHINK TH EI R B US I N ES S PLAN IN 2 0 08 .
SUMME R 2019
Enriching rural life.TM
Rural Scene
In This Issue
THE
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Director Scene
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PUBLISHED BY
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Kohl-laborations
Meet Brandon Haberer, new CEO
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AG Scene
Member Scene
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Community Scene
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Western Scene
2019 Director Nominations
Cooperative Scene, Patronage Cash
Farm Credit of Western Arkansas is a customer-owned financial cooperative providing financing and related services to farmers, ranchers, rural homeowners, agribusinesses and timber producers in 41 western Arkansas counties. With a loan volume of $1.2 billion, Farm Credit of Western Arkansas is a member of the 102-year-old Farm Credit System, a nationwide network of borrower-owned lending institutions providing more than $217 billion in loans to rural America.
– S.A.L.E.
On the Cover
Phillip, Beth and Tony DeSalvo successfully regrouped and established Big D Ranch when adversity struck their poultry operation ten years ago.
Office Locations and Loan Officers Arkadelphia 2858 Walnut (870) 246–8061 Rachael Godwin, David Smith
Greenbrier 89C N Broadview St. (501) 679–5464 Josh Dunlap
Ozark 1808 Farm Credit Dr. (479) 667–3855 Tom White
Benton 15227 1-30 South (501) 860–6391 Kevin Barham
Harrison 129 W Industrial Park Rd. (870) 741–2020 Brad Matlock
Paris 3772 W Hwy 22 (479) 963–2841 Donna Griffin
Bentonville 3600 SW Regional Airport Blvd. Suite 16 (late May) (479) 273–3311 Darla Larson, Dilynn Dodd
Hope 1722 E 3rd St. (870) 777–6704 Jerry Nance, Clay Lance
Prairie Grove 1181 E Heritage Pkwy (Hwy 62) (479) 400–6160 Daniel Keeton
Huntsville 14238 Hwy 412 (479) 738–6622 Trey Villines
Russellville 2797 E Parkway (479) 968–5030 Jim Taylor, Anna Lester
Magnolia 1703 Pittman St. (870) 234–8611 Shaun McKamie
Siloam Springs 4970 Hwy 412 East (479) 524–6754 Savannah Dickinson
Mena 1607 Hwy 71 North (479) 394–1027 Rex Dollar
Texarkana 2305 Trinity Blvd. (870) 772–1882 Jonathan Shumate, Jennifer Hooper, Rustin Watson
Clarksville 1007 Interstate Dr. (479) 754–2876 Anna Lester, Sherry Boen Danville 302 E 5th St. (479) 495–2711 Lora Briggs De Queen 800 E Magnolia Ave. (870) 584–3113 Jordan Icenhower Fort Smith 12907 Hwy 71 South (479) 434–4040 Andrea Leding, James Crabtree
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Glenwood 131 Hwy 70 East (870) 356–2023 Adam Baker
Morrilton 1329 Hwy 9 (501) 354–2377 Hank DeSalvo Nashville 302 W Bishop (870) 845–2221 Denise Sweat
Tontitown 1091 W Henri De Tonti Blvd. (479) 717–6740 Misty Eastep Waldron 502 Frankie Matthew Dr. (479) 637–2087 Rex Dollar
Letter from the CEO
Board of Directors I am excited and energized as I begin my new role with Farm Credit of Western Arkansas. I embrace the challenge and responsibility knowing that I am not alone. I have inherited a fantastic senior management team, committed employees and directors, and an engaged customer base. Together, these elements embody the cooperative spirit. I know the association’s future is bright!
Brandon Haberer
My goal is to continue to offer competitive rates and terms and uniquely different lending programs geared toward member/customer needs. For instance, our construction-to-permanent loan allows customers to lock-in their long-term, permanent financing at the start of construction and protects members from potential rate increases during the construction phase. This benefits members – our goal as a financial cooperative.
Steve Burke, Washington Chuck Davis, Ashdown Dusty Hampton, Russellville Kim Hogan, Ozark Ron Hubbard, London Cody Jones, Mansfield Bill Linton, Dover Julie Lively, Fulton Kenny Martin, De Queen Gene Pharr, Lincoln Mark Wilcox, Greenbrier
President and CEO Brandon Haberer
Our employees are invested in you and your communities because we live and work in those same communities. One of the seven business principles that cooperatives follow is Concern for Community. Community encompasses not just your town, but your local civic groups, ag groups, schools, FFA chapters, 4-H clubs, ball teams, non-profit organizations, and more. We have been a friend and partner who understands and belongs to your rural community and I promise that will grow under my tenure.
About the Rural Scene The Rural Scene is produced for members and friends of Farm Credit of Western Arkansas. Address comments and story ideas to Editor, The Rural Scene Farm Credit of Western Arkansas 3115 W. 2nd Court • Russellville, AR 72801
The cooperative principles are near and dear to my heart. As a youngster sitting on my grandfather’s knee, I heard about the value of the cooperative spirit. He worked for an electric cooperative and was passionate about the benefits cooperatives provided. His enthusiasm made an impact on me. I carry that same passion today and it has grown as I’ve seen, firsthand, the community culture that cooperatives promote.
Editor Jill Robertson Jill.Robertson@farmcredit.com
While maximizing our members’ financial success is our mission, we also have a responsibility to earn a profit for members. In turn, members share in the profits when the association has a good year. 2018 was not only a good year, it was the association’s best year ever. Thus, members shared a record $9.1 MILLION in Patronage Cash in February. I attribute 2018’s success to a number of factors. I believe we have a tenured staff who are connected to their communities which helps grow business. Referrals from happy customers who trust us along with a stable western Arkansas ag economy played parts, as well. Finally, we saw pockets of poultry expansion that helped us grow. I anticipate that 2019 will be a more normalized year and not another record-breaking year. This is due in large part to rising interest rates and consumer sentiment.
Brandon Haberer President and CEO
Vice Chair Bob Dixon, Havana Randy Arnold, Alma
L. Duane Wilson, Springdale
We will continue to listen to members’ concerns and make adjustments, as needed. Cooperatives are unique in that our mission isn’t to focus solely on profit and lofty earnings to satisfy investors. Instead, our job is to serve members’ best interests.
I appreciate the opportunity to lead this strong association and look forward to the great things our team will do to serve Western Arkansas members’ needs.
Chair Kenny Brixey, Casa
Contributing Writer and Photographer Lindsey Holtzclaw Lindsey.Holtzclaw@farmcredit.com myaglender.com Article quotes have been edited for content and appropriateness.
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Member of the Cooperative Communicators Association. © 2018 Farm Credit of Western Arkansas.
Farm Credit of Western Arkansas is an equal opportunity employer and does not discriminate on the basis of race, color, religion, gender, sexual orientation, gender identity or expression, national origin, age, disability, genetic information, marital status, amnesty, or status as a protected veteran in accordance with applicable federal, state and local laws.
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DIRE C TO R SC E N E
Letter from the Board Chair Greetings from the board, Farm Credit of Western Arkansas welcomed new President and CEO Brandon Haberer on February 1. The CEO search process was comprehensive and the board was committed to finding the best leadership fit for our association. The position attracted a talented and diverse group of qualified individuals which allowed the board to evaluate and consider a broad range of management styles. In addition, the applicant pool provided varying visions for association growth and direction. After much consideration, Brandon’s proven dedication to customer needs, commitment to efficiencies in loan processes, and vision for successfully coordinating association resources made him the clear choice. The board is looking forward to working with Brandon to meet these goals and to support his leadership. As a member, the most important thing you can do is support our Farm Credit by engaging in the election process. The annual election cycle is once again upon us and the Nominating Committee will meet May 28 to slate this year’s candidates. You are welcome to call a Nominating Committee member to suggest the name(s) of members for open director positions. Nominations will be considered and
make memories Whether it’s on land or water, our easy financing can make your dream of owning property a reality.
approved at the 2019 Annual Meeting in August and ballots mail to all members in early September. I challenge you to learn more about director candidates and return your ballot by mid-October (page 5). Compiling a slate of capable and willing candidates to serve as directors is a task the Nominating Committee takes seriously. Their dedication to this task is appreciated. Every director plays a significant role in guiding the direction of our association. Every position warrants important consideration from the committee and from voting stockholders. Supporting the election process helps our association continue to thrive. 2019 holds exciting opportunities for our association. The board welcomes Brandon’s leadership and is excited to work toward continued success.
Kenny Brixey, Chair, Board of Directors Farm Credit of Western Arkansas
Siloam Springs ●
Nominate a qualified member for a director position.
Boone
Carroll
● Tonitown Madison
● Huntsville
Washington
Newton
● Prarie Grove
Franklin
Crawford
Johnson
Van Buren Pope
● Clarksville Conway
● Fort Smith
Russellville
Sebastian
Faulkner
● Paris
You’re invited to contact a current Nominating Committee member if you would like to: • be considered as a Director nominee • nominate a fellow stockholder for a Director position • nominate a fellow stockholder for the Nominating Committee
Yell
● Danville
2. Must have an active loan balance and acceptable credit classification rating.
Director Positions Open for Election
AREA 1
AREA 3
AREA 5
Nominations will be accepted through May 24, 2019. Please contact a Nominating Committee member with suggestions for nominees.
The current 15-member Farm Credit of Western Arkansas Board of Directors is comprised of a combination of twelve member-elected directors, one inside-appointed director, and two outside-appointed directors as dictated by association bylaws. Each director serves a four-year term. Our bylaws require at least 60% of directors to be elected by stockholders; FCA regulation requires a minimum of two non-stockholder directors.
Perry
● Waldron Scott Saline Garland
Montgomery
● Mena
Pike
● De Queen Sevier
● Benton
Hot Spring
● Glenwood
Howard
Grant
● Arkadelphia
● Nashville
Clark
Dallas
Hempstead Nevada
Little River
● Hope
Nominees must meet the following general requirements, as well as all other Farm Credit conditions: 1. Be a voting stockholder, at least 18 years of age, and a bona fide farmer (person owning agricultural land or engaged in the production of agricultural products, including aquatic products under controlled conditions) in the association’s 41-county western Arkansas territory.
● Greenbrier
● Morrilton
Polk
The Nominating Committee is accepting nominations for Director positions that are up for re-election this year. Directors commit to a four-year term that begins once election results are final.
Searcy
● Ozark
Logan
As a financial cooperative, Farm Credit is owned by the members it serves. Members have the responsibility of nominating and electing fellow members to serve as Directors. Directors meet approximately 10 times a year and work closely with management to guide association strategic direction and general practices. Directors are compensated for their time and travel.
Baxter
Marion
● Harrison
DIRE C TO R SC E N E
2019 Director Nominations
● Bentonville Benton
Ouachita
Calhoun
● Texarkana Columbia
Miller
● Magnolia
Union
Lafayette
2019 Nominating Committee Members AREA 1
Ronnie T. Horn • Washington Kevin D. Harmon • Benton
(479) 841–2616 (479) 220–2901
AREA 2
Justin “Taylor” Gattis • Franklin James A. Ford • Franklin
(479) 438–9009 (479) 667–4772
AREA 3
Gerald Strobel • Logan Casey T. Cotton • Logan
(479) 934–9217 (479) 518–1362
AREA 4
Fred Nutt • Perry Ronnie D. Hall, Sr. • Faulkner
(501) 759–2408 (501) 679–3114
AREA 5
Linda Kitchens • Howard Randy W. Peck • Hempstead
(870) 583–6104 (870) 887–3635
AREA 6
Monte K. Davis • Sevier Michelle K. Sawyer • Sevier
(870) 832–3751 (870) 784–8931
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Q&A with CEO Brandon Haberer
The Haberers – Lauren, Brandon, Kara and Caroline pose with their family dogs Oliver and Heidi on their family’s land.
Brandon is no stranger to cooperative structure and Farm Credit of Western Arkansas’ culture. He’s been with Farm Credit since 2008 and has seen the association through its highs and lows. So, what’s next for Farm Credit? Brandon shares his vision and goals as the new President and CEO, why cooperatives are important and how his family has supported him as he’s moved into his new role. What type of leadership style do you follow? The leadership style I feel best explains me is often called “servant-style” or “participative” leadership. It’s a leadership style that invokes innovation and welcomes open communication and feedback. Early on in my career, the first bank president I worked for modeled these leadership characteristics. He gave me challenging responsibilities that I’ve carried throughout my career. I strive to do the same thing – encourage and empower others to do their job. What do you hope to accomplish in your first year as CEO?
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Within these first few months, I’ve made it a goal to visit each of our 23 branch offices in person. I want the employees to know they can reach out and share ideas, thoughts or concerns with me at any time. My other primary goal this year is to fix our technology growing pains. We have new software that could be doing more for us. I’m working with our senior management team to provide employees with needed training and the tools and resources we need to be efficient.
What do you value most about Farm Credit of Western Arkansas’ culture? I value our “put others before yourself” mentality. Whether it’s in regards to membership, another employee or a different department, employees at all levels are willing to stop what they’re doing to help others. You often hear the phrase Farm Credit family. Family culture is evident when it comes to big life events. Whether it’s a wedding or a funeral, our staff turns out in masses to support each other. Why do you think cooperatives are important? Cooperatives have a unique business model where the members, directors and employees all align for the same mission and goals. It’s not focused on how much revenue you can generate like you see in corporations. Instead, it’s truly service oriented. As a cooperative, we’re focused on how to better serve our members and our communities. When you put that first, you’re guaranteed to succeed. 100+ years of the Farm Credit System has proven that.
Where do you see Farm Credit in the next 10 years? I think as Farm Credit continues to grow, we’ll continue to capture a lot of synergies, especially when it comes to technology. I see a future with innovation where a customer can complete a loan application, sign documents and have funds deposited in their account without ever leaving home. At the same time, we’ll continue serving with our brick and mortar locations. Western Arkansas is very diverse and unique, so in order to remain in tune with our members’ needs, it’s important that we have a strong presence in our communities. I think the future will see us continue to grow and find new ways to best serve our members. You sit on several different boards. What have you learned from that work that you bring to Farm Credit now? I’ve served as a director for the Arkansas Valley Electric Cooperative, Adult Development Center and Watalula Water Users Association boards. The electric coop specifically has given me the opportunity to wear a different hat as a director and former chairman. When I’m in a Farm Credit board meeting now, I can relate differently to what the directors here need and expect. Whether it’s a rural utility or Farm Credit, the same seven cooperative principles are at the heart of both. What drew you to Farm Credit originally? When I came to Farm Credit in 2008, we were in the middle of one of the worst economic downturns since the 1980s. I previously worked at a bank on the commercial lending side and during that time our hands were tied because business was driven by profit and returns. The bank was distancing itself from agriculture, but that wasn’t the case at Farm Credit. I was truly able to see how Farm Credit is there for members during both good economic times and bad. That cemented my decision to work for Farm Credit.
In your opinion, what is the biggest challenge farmers and ranchers face today? How is Farm Credit helping provide a solution? I see global markets and trade as the biggest challenge, which can be both a blessing and a curse. It’s a blessing because it opens new markets and opportunities for agriculture, but it also presents a risk where markets can be cut off at any time. They’re difficult to predict and there’s typically not a lot a local farmer can do because of decisions being made on a geopolitical level. Farm Credit advocates on behalf of farmers by lobbying on local, state and federal levels. Once a year, Farm Credit associations from across the U.S. join together in Washington, D.C. to impact legislation in favor of agriculture. On a more local level, the Arkansas Farm Credit associations have a statewide lobbyist who brings attention to, and fights for, issues that are impacting our state’s farmers and ranchers. How has your family supported you in your new role and increased responsibilities? This change has been ironic timing for our family. My oldest daughter, Lauren, is in college and my youngest daughter, Caroline, is a senior in high school. It’s been the perfect timing for an opportunity like this to happen. If our daughters were younger, it would have been a hard decision to make. During the interview and selection process, my wife Kara hit the ground running by singlehandedly coordinating home renovations, organizing storm damage clean-up and vehicle shopping for our youngest as she gets ready to go to college. She handled projects from start to finish that were outside her comfort zone in order to support me as we prepared for this new chapter of my career. Photos by Lindsey Holtzclaw Left: In his spare time, Brandon enjoys cultivating grapes, a long time tradition in his family. Middle: Brandon and Kara Haberer Right: Heidi runs alongside the Haberer family as they ride across an open field. Heidi often joins Brandon on pheasant and quail hunts.
M E M B E R SC E N E
Heath & Judy Agerton with Shaun McKamie
In It Together Members who overcame the poultry industry’s 2008 economic downturn and how Farm Credit proved members’ needs are a priority. Any business can claim to put customers first. As a lender, Farm Credit of Western Arkansas (FCWA) had the opportunity to prove it in 2008 when the western Arkansas poultry industry faced a significant economic downturn.
structured accordingly. Fortunately, most poultry growers also had money in Funds Held that could be called on to make payments. Senior management prepared employees for possible customer impacts, as well.
Downturn may be too casual a term, especially to the more than 90 FCWA customers whose farms and livelihoods were financially impacted in varying degrees.
IMPACT ON THE FARM
A perfect storm of circumstances triggered the 2008 industry slump. Supply and demand flipped, the cost of corn jumped from $3 – $8 per bushel for a variety of reasons (including the increasing popularity of ethanol fuel), and less demand for poultry overseas. FCWA management recognized the impending impact and strategized as to how members might be affected. Current CEO Brandon Haberer was Chief Credit Officer at the time. He met with AgriBank (FCWA’s funding bank) senior managers who had experienced the 1980’s credit crisis. Brandon and fellow senior managers formed a plan of how to help affected customers and mitigate the association’s losses. FCWA’s board of directors firmly supported management’s plan and allowed them to manage the business risk associated with the poultry complex closures.
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According to Brandon, Farm Credit felt fortunate that poultry growers were coming off a strong year and that loans are stress-tested for financial strain up front, and
Economic ripples ran through the entire poultry industry. Western Arkansas integrators across more than 30 complexes felt the impact on some scale. In turn, poultry growers across western Arkansas experienced everything from extended time between batches (decreasing annual income) to loss of contracts, entirely.
HEATH AND JUDY AGERTON Heath and Judy Agerton of Strong, AR in Union County were both working full-time on the farm in 2008. They had ten years of poultry-growing experience and a four-house broiler operation when they received word they’d be out of a contract upon completion of their current batch of birds. They had seven days to reinvent their livelihood and make a plan for keeping their farm. “I’ll be honest,” Heath said, “that first meeting with Farm Credit was tense.” “We weren’t in our right minds,” Judy adds. “It almost felt like the kind of grief you would feel if you had lost a family member. We didn’t know what to do.”
“I hadn’t been with Farm Credit for long at this point and I was amazed at how differently Farm Credit approached business,” newly appointed CEO Brandon Haberer explained.
“We went to Farm Credit with our entire savings and paid everything we could on our loan. I said, ‘this is all we can do’. If we couldn’t work something out, our only choice would have been bankruptcy.
“Coming from a commercial bank, my experience was very black and white,” Brandon continued. “My mentors here had decades of Farm Credit experience and, I quickly realized, had a much different approach to the situation than I anticipated. I saw the value of Farm Credit’s cooperative principles at work.”
It took a series of meetings between Farm Credit and the Agertons to negotiate a final plan. The Agerton’s loan officer is Shaun McKamie in Magnolia. While Shaun wasn’t their loan officer in 2008, he worked with customers similarly affected in the Texarkana area at the time.
“The $100,000 from the national aid package helped. Farm Credit proposed putting our loan on hold and that gave us time to sort things out,” Heath explained. The Agerton’s waited four years for a new poultry contract. Farm Credit financed the conversions they had to make to their existing poultry houses to switch from a broiler operation to growing pullets. “The last thing we wanted to do was go into bankruptcy. The 20 acres the poultry houses sit on are family land, so we had to make it work,” Heath shared. “If Farm Credit hadn’t given us time, we would have had to declare bankruptcy and that would have been much harder to recover from,” he added.
M E M B E R SC E N E
“I immediately started looking for a job and took the first one I could find which was a truck driving job,” Heath explained. “Income of any sort was our priority. We had two kids in college.”
“We worked to understand each member’s unique situation,” Brandon said. “We allowed them time, we presented viable alternatives and options, and we even worked to locate and secure poultry contracts with other integrators on behalf of our members.”
PHILLIP AND BETH DESALVO The DeSalvos built three chicken houses in 2003 so Phillip could farm full-time. They live on the same Center Ridge farm as Phillip’s father Tony DeSalvo and farm with Tony. Tony had two existing chicken houses. “We were notified on August 11 that we’d be out of a contract on August 18,” Phillip remembered. “We had some cattle and planned to grow the cattle side of our business but, honestly, we were a few years away from being ready to do that,” he continued.
“Our friends were in the same position as us, but they’d financed with a bank,” Judy explained. “Unfortunately, they had no option but to sell their home and farm.”
FARM CREDIT’S APPROACH The assistance Heath referenced was the Poultry Grower’s Assistance Program (PGAP), an emergency USDA grant that then Senator Blanche Lincoln lobbied for on behalf of growers. PGAP provided up to $100,000 to each grower impacted. FCWA was willing to work with members and, in essence, put their loan on hold for up to five years because they were confident the poultry industry would correct in a few years. Farm Credit said the key was members’ willingness to meet them halfway. The majority of FCWA’s affected customers regained contracts within two years. Continued on page 10
Phillip, Beth and Tony DeSalvo with Farm Credit loan officer Hank DeSalvo.
“It wasn’t the best timing, but at least in the cattle business you eat steak when there’s no money for groceries,” Beth joked. The family had already experienced a trying year with two tornados damaging their property in May. “We had to ask ourselves what we were going to do,” Phillip said.
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M E M B E R SC E N E
“I like to think we’re pretty optimistic people, but we’ll admit there’s about two years of time that’s pretty fuzzy for us. I’m not really sure how we did it,” Beth added. “It did force Phillip to look at our business in a different way, and that was good. Raising cattle was no longer a hobby, it became our business. It was our only income and we were going to have to make it work with some very expensive barns,” she chuckled. “Cow castles,” Tony corrected with a grin, referring to the five poultry houses.
Travis & Valerie Sims
The DeSalvos transformed their five chicken houses into barns they use for calving, weaning, an annual registered bull sale, and hay storage. A former litter shed now holds feed.
“It was mind-blowing,” Travis said. “It put us in a real bind.”
They raise registered Brangus and Ultra Black cattle along with commercial beef. Beth also sells custom beef at a local farmer’s market. They’ve found their niche in the cattle business with registered bulls and hold a fall bull sale on site that draws buyers from surrounding states. Phillip holds a leadership position with the Arkansas Cattlemen’s Association and is a passionate cattle industry advocate. The DeSalvos were named Farm Family of the Year in 2012. Phillip said they presented loan officer David Duffle (now retired) in the Morrilton office with their cattle plan when they met to discuss the loss of their poultry contract. (Jim Taylor of Russellville now serves as their loan officer to avoid a conflict of interest with Morrilton loan officer Hank DeSalvo, Tony’s nephew and Phillip’s cousin.) The DeSalvos’ cattle in their “cow castle.”
Travis said he immediately found an off-farm job excavating for a gas company to make ends meet. “We went 20 months with no birds and when a new integrator picked us up we had to do significant, and expensive, upgrades to the houses,” he explained.
The Sims had a long-time working relationship with Hank DeSalvo in the Morrilton office. “It wasn’t an easy conversation to have with Farm Credit,” Travis remembered. “We were overwhelmed. Having worked with Hank for a while helped. We trusted him. It didn’t take long to see that Hank and Farm Credit were going to work with us as we got back on our feet.” To the Sims, that meant growing their cattle operation. Today they have 200 head of momma cows in addition to their poultry houses.
CHANGING BUSINESS MODELS According to the Sims, they now maintain more savings and have become more conservative business people as a result of their experience. They include both cattle and poultry in their long-term farming plan because they say they realize anything can happen.
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TRAVIS AND VALERIE SIMS
Like the Sims, the Agertons now believe in the importance of diversifying their farm and business. They are enlarging their cattle operation, getting into the logging business, own two small businesses, and Judy continues to maintain an off-farm job.
While western Arkansas poultry growers first began feeling the impact in mid-to-late 2008, Travis and Valerie Sims of Center Ridge weren’t affected until 2010.
“We’re better protected today and have options now that we didn’t have then,” Heath explained. “We look at business differently after this experience.”
The couple worked full-time on the farm with a four-house poultry and commercial cross-breed beef operation when they received news they were losing their poultry contract.
Like the Sims and Agertons, the DeSalvos agree they gained perspective from 2008 challenges and are happy with their decision to focus solely on cattle.
M E M B E R SC E N E
TRUST WAS THE KEY The common thread woven through these three stories is trust. Farm Credit trusting members. Members trusting Farm Credit. All three families remain Farm Credit members. “Farm Credit stood with us,” Phillip said. “They kept us on track and worked with us as we transitioned to cattle.” “It’s a big deal to be able to trust the people you’re doing business with and it goes both ways,” Heath shared. “Shaun and Farm Credit can trust us, too. They know us and know we’re committed to holding up our end of the agreement.” Travis said trust played a key role from the minute he received the news their poultry contract was being cancelled. “In that moment, I was glad I had a solid relationship with Hank,” Travis said. “I knew I could trust Hank and Farm Credit to be fair and work with us.”
WINS FOR FARM CREDIT Not only did the unfortunate situation provide an opportunity for Farm Credit to build additional trust with customers, but it also demonstrated the confidence members had in their cooperative. Farm Credit learned their prudent industry knowledge serves members well. While new poultry houses have a 25-year lifespan, Farm Credit structures loans with a 15-year repayment period – allowing room for adversity and loan restructuring, if needed.
NATIONAL BENEFITS FCWA lobbied their lending bank and regulator on behalf of growers to more accurately reflect poultry industry needs in regard to regulation. The regulatory changes that FCWA influenced now benefit poultry producers across the country. “By influencing system-wide poultry policy in a positive way, we were able to strengthen the power of cooperation,” explained Brandon Haberer, CEO. “Cooperation and serving member needs is Farm Credit’s core mission as a financial cooperative. I’m proud that in this adversity we were able to demonstrate that member needs are truly our priority,” Brandon concluded. Story by Jill Robertson Photos by Lindsey Holtzclaw and Jill Robertson
Travis & Valerie Sims speaking to Hank DeSalvo with Farm Credit.
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C O O P E RAT IVE SC E N E
7 Cooperative Principles Voluntary Membership Democratic Member Control Members’ Economic Participation Autonomy and Independence Education, Training, and Information Cooperation Among Cooperatives Concern for Community
Members’ Economic Participation Members contribute equally to, and democratically control, the capital of the cooperative. This benefits members in proportion to the business they conduct with the cooperative rather than on the capital invested.
$9.1 MILLION Patronage Cash
6,146 Farm Credit of Western Arkansas members shared $9.1 MILLION in Patronage Cash this spring. Members share in the profits when our association has a strong capital position and earnings. It’s the cooperative way of doing business. Our Western Arkansas Farm Credit association has a proud history of Patronage Cash with more than $119 MILLION back in members’ hands since 1997. We hosted Patronage Open House events across the association to celebrate this valuable and unique member benefit. It’s our favorite time of year – there’s nothing better than handing our members their share of the profits!
MAGNOLIA Milly Lindsey is excited to hand her customer his share of the association’s profits.
HARRISON Brad Matlock sharing in a customer’s patronage excitement. 12
HUNTSVILLE Trey Villines gives a member his patronage check.
Voluntary Membership
2020 Future Legacy Young and Beginning Farmers Conference
Democratic Member Control Members’ Economic Participation Autonomy and Independence Education, Training, and Information Cooperation Among Cooperatives Concern for Community
We’re making plans for our February 2020 Future Legacy Young and Beginning Farmer Conference and hope you will, as well! A two-day, one-night opportunity to gain valuable insight into a range of issues facing beginning farmers in Arkansas. Plus, the chance to network with fellow young farmers from across the state February 25 & 26 in North Little Rock. Dr. David Kohl, nationally recognized for his ability to engage, teach
C O O P E RAT IVE SC E N E
7 Cooperative Principles
Education, Training, and Information Cooperatives provide education and training for members, elected representatives, managers and employees so they can contribute effectively to the development of their cooperative. Members also inform the general public about the nature and benefits of cooperatives.
and lead young farmers, will again facilitate our conference and address issues specific to Arkansas farming. The conference is free and open to participants ages 35, and younger. All types of agriculture production are welcome. Full-time and part-time farmers, alike. Let us know you’re interested by submitting an application by December 15, 2019. Find the application at myaglender.com or email Jill Robertson at jill.robertson@farmcredit.com.
TONTITOWN Misty Eastep and Allison Kline welcome members with Patronage Cash.
RUSSELLVILLE Anna Lester presents a check to members.
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KOHL
-laborations
Commentary, wisdom, and perspectives from globally renowned agricultural economist, Dr. David M. Kohl.
The Short and Long-term Views from the Road Thank goodness for longer days and the optimism spring brings. The polar vortex and strong storms have made this winter’s travel season one to remember. Despite the bad weather, my engagement with producers, lenders, and agribusiness leaders resulted in some interesting short and long-term perspectives. Some producers have quietly shared their operations are actually making money. They are almost embarrassed to share information about their “secret sauce.”
APPLYING THE “LITTLE BIT BETTER” PRINCIPLE These profitable operations are producing yields 5-10 bushels per acre more than their peers and are better at keeping costs under control. They also market some of their crops at planting – often when prices are above cost of production – rather than waiting for a potential home run during harvest. Other crop and livestock producers have reduced costs without hindering revenues. Capital and asset efficiency are a high priority for this group of producers. They have reduced their non-income producing assets – such as machinery or land – that are no longer economical. They also made the necessary cuts in human assets which, in some cases, include unproductive family labor.
ANALYZING EACH BUDGET & DIVERSIFYING THE INCOME STREAM
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One factor affecting cash flow and profitability is the family living budget. One producer indicated it was just as important as farm business budgeting. With multiple generations taking withdrawals from the business and increased healthcare premiums and other costs, the difference maker is often the personal side of the business finances.
The side gig economy is alive and well, specifically among the younger generation. Multitasking, fully utilizing one’s skill base, and networking can provide multiple streams of revenue not seen in traditional agriculture. One Upper Midwest producer indicated his son used his talents and passion to develop a very successful towing company. He chuckled when he recalled a recent four-day period of inclement weather which netted his son a larger profit than the farm generated over an entire quarter. This towing company is a great example of a diversified source of income.
MACRO VERSUS MICRO Despite the difficult agriculture economy, some boomerang producers are coming back to agriculture after spending time working outside of the industry. For example, a young producer who spent more than a decade working outside of agriculture launched a successful grass-fed beef and organic grain operation on part of his family’s farm. His experience networking with people and institutional clients provided a readymade marketplace for his entrepreneurial products. Tweets and headlines are an everyday occurrence and create tremendous volatility in crop prices, input costs, and emotions. This appears to be a fact of life for the next few years. The key will be to focus on the factors in the business one can manage, and to manage around the uncontrollable variables. Knowing your cost of production, breakeven points, and executing on small windows of opportunity will be the mode of operation. On the long-term view, technology and more resources in production – such as land – will shape the landscape of the future of agriculture. Overlaying these changes with dynamic weather patterns, warmer nights, and more frost-free days mean where and how we farm will constantly be evolving.
Domestic and international consumer habits and tastes are changing. Some fads will emerge into trends that will rock ‘n’ sock the food sector. The consumer of the future will desire four distinct attributes. The first is transparency from producers and consumers. Big data and block chains will also be key drivers in this component. Next, personalized and customized products tailored to the individual customer are coming to the food industry very quickly. Many of the new consumers will purchase an experience rather than a product. Globally, three out of every seven new customers will be residing in the Asian realm. Crop and livestock producers in the Midwest must think globally and act locally. At a snowy event in Nebraska, one producer mentioned the previous economic downturns weeded out the poor or below-average production managers. This elongated downturn is also pruning the below-average business managers, not only measured by production, but by marketing, finance, and overall business operational skills. This insightful producer’s comment sums up the future. Sweating the small stuff with a focus on the business IQ in the functional areas of operation will be the recipe for success, regardless of how one defines the future.
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R E F E R R AL R EWAR D S PR OG R A M
Thank you for spreading the word about Farm Credit! Our members are the best advertising tool we have. Potential new members are quick to trust a friend or family member who shares their own, personal Farm Credit story. Personal referrals are much more effective than advertising. You probably know people who would appreciate the benefits Farm Credit can offer.
• Friendly, local service
Refer as many people as you like... you’ll be helping your Farm Credit grow!
• Special discounts for military veterans, young/beginning farmers and even small producers selling direct to consumers.
• Long-term, fixed interest rates, and flexible terms • Financing homes on any size acreage in the country (loans stay with Farm Credit).
• Patronage Cash. Members share in the profits when the association has a good year. • Employees who understand agriculture and are involved in your local community.
How It Works
1. Encourage a friend to talk to Farm Credit about their financing needs. 2. When they close a loan with us, we ask who referred them. 3. We call and invite you to drop by and choose a thank you gift of your choice.
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Bluetooth Speaker
Set of Two Knives
Leather Gloves
AG SC E N E
S.A.L.E.
The Southwest Arkansas Livestock Event fills a need for youth showing cattle.
Until five years ago, youth in southwest Arkansas had to travel outside the region if they were interested in a jackpot cattle show. The time and expense incurred with travel was prohibitive for many youth in the area.
“I like that it’s close to home, competitive, and that I see many of the same people at every show,” said third-year participant Blake Swain, a senior at Centerpoint High School.
To solve the problem, a group of dedicated parents worked together to create the Southwest Arkansas Livestock Event (S.A.L.E.). 74 participants competed in the 2019 Series. The series consist of three separate Saturday shows from December through February. All shows are held in Hope, AR.
“The series has a reputation for good judges, great prizes and for being competitive,” added Rachael Godwin. “In fact, S.A.L.E. is now attracting competitors from Louisiana, Texas and Northwest Arkansas.”
Employees Denise Sweat and Rachael Godwin were a part of the original group who created the series. Both had successful careers in the show ring as FFA members and are passionate about sharing the experience with their own children, as well as area youth. “My husband and I loved showing animals as FFA members and it appears we’ve passed that along to our daughters,” Denise smiled. “It’s quality family time and a hobby we share. As an ag teacher, my husband Chris saw Denise Sweat working at S.A.L.E. the need for more local show opportunities, first hand. There were kids who were interested, but simply didn’t have the means to travel to shows. S.A.L.E. was a fairly easy solution and we’ve been thrilled to see it grow.”
Denise Sweat is a Regional Vice President in Farm Credit’s Nashville branch and Rachael Godwin is a Vice President/Loan Officer in Arkadelphia. Denise and Rachael have earned donations for S.A.L.E. through Farm Credit’s Community Involvement Program that rewards employees who volunteer their leadership to local non-profit organizations.
Blake Swain with show animal.
Competitors range in age from 4 (or old enough to lead their animal) to 21.
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You’re thrilled with the view you’ve found.
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NOW BE JUST AS THRILLED WITH
EASY FINANCING
Farm Credit again partnered with the Arkansas Agriculture Department to sponsor grants that assist farmers markets across the state with advertising and publicity costs. The AR Agriculture Department administers the contest and, together, Farm Credit of Western Arkansas, AgHeritage Farm Credit Services and Farm Credit Midsouth provided $9,000 in grant money.
Paragould Farmers Market
Rural Mountain Producers
Arkansas Local Food Network
Cabot Farmers Market
Fayetteville Farmers Market
Pope County Farmers Market
Harrison Farmers Market
Conway Farmers Market
Siloam Springs Farmers Market
Fort Smith Farmers Market
Vilonia Farmers Market
Chester Farmers Market
The Central Ozarks Farmers &
Dandanelle Farmers Market
Spring River Farmers Market
Russellville Farmers Market
ASU Regional Farmers Market
Beebe Farmers Market
Downtown Newport Farmers Market
Gateway Farmers Market
Searcy County Farmers Market
Artisans Market St. Joseph Farm Stand Howard County Farmers Market
C O M M U N IT Y SC E N E
2019 Farmers Market Publicity Grant Winners
Green Market
$10,000 Nebraska Flood Assistance Donation
Area 7, hosted in Conway
The Farm Credit associations in Arkansas joined forces to aid farmers affected by spring flooding in Nebraska. The donation was made to the Nebraska Farm Bureau Disaster Relief Fund who will administer aid to farmers who’ve had farms, livestock, equipment, homes and spring planting impacted.
Ozark Police Department’s Shop with a Cop
Area 2, hosted in Clarksville
Financial Services Specialist Rosemary Hall of Ozark is a 12-year volunteer with the police department’s
ACA Spring Conferences We proudly sponsored the Arkansas Cattlemen’s
program that pairs volunteers with area youth so they can Christmas shop for their families.
Association’s Area Spring Conferences in western Arkansas. The conferences highlighted ACA’s focus on legislation, education, advocacy and development.
Garrett Jones Memorial Bass Tournament Regional Financial Services Specialist Ali Reed was able to give back to her hometown of Nashville through her volunteer work with the Garrett Jones Memorial Bass Tournament. Her work earned a $500 donation for the cause through the Community Involvement Program.
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C O M M U N IT Y SC E N E
Arkansas Women in Agriculture Farm Credit was a major sponsor of the 2019 Women in Ag Conference in Little Rock. A long-standing tradition, the conference provides valuable information on an array of topics and promotes networking among women producers.
$500 Donation to Saving Grace NWA
YCLC Graduation In December, Mena Vice President Rex Dollar
Regional Financial Services Specialist Christi-
and Communications Specialist Lindsey Holtzclaw graduated from the Arkansas
na Roling used Farm Credit’s Community
Cattlemen’s Association’s Young Cattlemen’s
Involvement Program to make a $500 donation to Saving Grace’s annual fundraiser luncheon. Christina serves as a volunteer with
Leadership Class. YCLC gives future leaders hands-on experience throughout the year with sessions focused on policy, commerce,
Saving Grace, a nonprofit organization in Northwest Arkansas dedicated to mentoring girls and breaking the cycle of poverty without
commodities, communications and other
Fight for Max Blood Drive Regional Vice President Andrea Leding volunteered for the Fight for Max Blood Drive hosted by the Arkansas Blood Institute. Additional employees in the Fort Smith branch office donated blood in support of local patients like Max Blackwell who was diagnosed with leukemia at age 11.
segments of the beef industry.
government assistance.
Harrison Branch Calf Raffle Benefits area FFA Chapters Since its start in 2002, our Harrison branch’s calf raffle fundraiser has raised $451,434 for local FFA chapters. This year alone, the chapters who participated raised over $48,000! All chapters who participate keep 100% of the money they raise and as an additional perk, the top three chapters who raise the most money are treated to a pizza party to celebrate. This year, the top sellers were Mountain Home FFA, Valley Springs FFA and Flippin FFA.
Raising funds for Washington County FFA and 4-H groups
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Northwest Arkansas branch offices donated two Traeger grills for interested Washington County FFA chapters and 4-H Clubs to raffle. Clubs sold tickets for $1 and kept all profits.
Arkansas Grazing Lands Coalition Sponsor Farm Credit was again a major sponsor of the March Arkansas Grazing Lands Coalition Conference.
#FarmCreditProud 4-H Members
ATU Stem Donation
Farm Credit employees from Morrilton, Ozark,
The Danville branch office surprised Mt.
Senior Business Credit Analyst Josh Jones (left)
Paris and Russellville teamed up to cook steaks
George Lucky Clovers 4-H members with
and Vice President Jim Taylor (right) present a
for more than 85 attendees during the 2019
Farm Credit shirts at a recent meeting. We
$250 donation to Sarah Burnett with Arkansas
River Valley Beef Cattle Conference. The event
love seeing this group be #FarmCreditProud.
Tech STEM Institute. The donation was used for
included information on improving herd genet-
ATU Stem Collaborative - an outreach program
ics, controlling unwanted grasses and the
providing insight, instruction and opportunities
GoGREEN program.
for high school robotics and engineering.
C O M M U N IT Y SC E N E
River Valley Beef Conference
FFA CDE DAY Ashdown Community Auction
A group of our employees cooked for over 1,700 FFA members during Career Development Event Field Day in Logan County in March.
In March, Texarkana branch staff volunteered at the Ashdown Community Auction, which raised $52,000 for community enrichment
Centerpoint Elementary Career Day Centerpoint Elementary School held their first Career
projects and improvements.
Day this spring. During the event, Glenwood Financial Services Specialist Danielle Brown had the chance to tell 280 3rd-5th graders about Farm Credit, her job and why credit is important.
4-H at the Capitol $500 Pope County 4-H Donation Human Resources Coordinator Carol Parker presented a $500 check to Emily Hawkins, Cooperative Extension Agent/ Ag for Pope County. Carol is a long-time Pope County 4-H Foundation board member and her volunteer leadership earned the donation as a part of our Community Involvement Program.
A sea of green flooded the Arkansas Capitol in February as more than 700 4-H’ers joined together for 4-H Day at the Capitol. Farm Credit of Western Arkansas was a proud $1,500 sponsor for the event which gave Arkansas 4-H members a chance to show off
Madison County 4-H
their 4-H projects, hear remarks from Governor Asa Hutchinson, tour the Capitol and attend legislative sessions in the Arkansas House and Senate.
Our Huntsville office was recognized as a supporter of Madison County 4-H during their annual banquet in March.
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W E ST E RN SC E N E
New Faces PRISCILLA JOHNSON joined the Farm Credit team in December as Financial Services Specialist in Hope. Her previous experience includes working as the operations manager of a department store for 12 years. She was raised on a cattle and poultry farm in Hempstead County and attended Spring Hill High School. She and husband Johnny have three sons – Landon (age 11), Russ (age 3) and Jace (10 months). When she has time for hobbies she enjoys hunting.
SHELBY BRADLEY started her Farm Credit tenure as a Financial Services Specialist in Russellville in late March. Shelby brings four years of sales and administrative experience from Shelter Insurance and experience as a financial services representative at a bank. She is a graduate of Deer High School and she and husband Kevin live in Pottsville with their son Caden (age 5). In her free time, she enjoys watching Caden play ball.
Changing Places BRIAN COWART has been promoted to Regional Appraiser in the Glenwood office.
WILSON OVERBEY has been promoted to Regional Residential Appraiser and he works in the Clarksville branch office.
PHILLIP HOSKINS of the Tontitown office has been promoted to Regional Appraiser.
BREANA BREWER was named Credit Analyst in the Central Office in Russellville on February 1. Breana previously worked as a Financial Services Specialist.
CARLA MANNING was promoted to Lead Loan Document Specialist on February 1. She works in the Magnolia office and has been a Loan Document Specialist for 11 years.
JORDAN ICENHOWER has been promoted to Vice President and Branch Manager at De Queen.
DILYNN DODD has been promoted to Vice President and Branch Manager at Bentonville.
CLAY LANCE of the Hope office has been promoted to Vice President and Branch Manager.
BRAD MATLOCK has been promoted to Regional Branch Manager at Harrison.
DARLA LARSON has been promoted to Regional Vice President over northwest Arkansas branch offices. She works from the Bentonville office.
ANDREA LEDING of the Fort Smith office has been promoted to Regional Vice President over River Valley area branch offices.
DENISE SWEAT has been promoted to Regional Vice President over central western Arkansas branch offices. She works from the Nashville office.
JONATHAN SHUMATE of the Texarkana office has been promoted to Regional Vice President over southwest area branch offices.
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Located at 3600 Southwest Regional Airport Road, the branch should be more easily accessible to members. The Bentonville crew is excited to move into their new space and welcomes you to stop in.
W E ST E RN SC E N E
The Bentonville office is moving to its new location in late May.
New Bentonville Branch Opening in Late May
Our Apologies! Congratulations to JERRY AND DYANNA MOYER of Lincoln who earned the Farm Family of the Year title for Washington County in 2018. We apologize for inadvertently omitting their name from our list of winners in the last issue of the Rural Scene. We are proud of all members who have had their hard work on the farm recognized by the Farm Family judges and sincerely apologize for this oversight.
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3115 W. 2nd Court Russellville, AR 72801
Enriching rural life.
TM
Let Farm Credit’s industry-leading knowledge, competitive products, and more than 100 years of agricultural and rural financing experience help you. • Farms of all sizes • Livestock • Country home and home construction • Land
2019 Photo Contest
• Recreational land • Timber tracts • Forestry products and processing
Grand Prize
$500
(best overall photo from both categories) It’s never too early to start planning for our annual photo contest! Contest deadline is October 1. We’re looking for shots that tell the story of what it’s like to live here in western Arkansas. Contest is open to anyone living in our 41-county Western Arkansas territory.
Entry form and complete details at myaglender.com
1st Place $300 2nd Place $200 3rd Place $100
Cash prizes in both Youth & Adult categories. Two divisions – Adult and Youth (up to age 18), with cash prizes in both categories.
2018 2nd Place photo by Doug Nordin.
