The Rural Scene Fall 2018

Rural Scene

THE

TH R E E G E NE RATION S STRON G, TH E NE E LE YS A RE COM M ITTED TO FOR E ST RY M AN AGEM EN T. FA L L 2018

Enriching rural life.TM

On the Cover

Rural Scene

Foresters Daniel, Jim and JD Neeley of Camden.

Page 6

THE

PUBLISHED BY

Farm Credit of Western Arkansas is a customerowned 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 $257 billion in loans to rural America.

In This Issue

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Director Scene

6

Member Scene

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2018 Director Nominations

Forest management is a shared passion for three generations of the Neeley family.

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Ag Scene

16

Scholarship Winners

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Community Scene

Arkansas Junior Simmental Association event highlights

20 - $1,000 scholarships awarded to western Arkansas youth

National Farm Credit Scene The Farm Credit System’s National Reach

Cooperative Scene The seven cooperative principles are Farm Credit’s business model.

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Committed and connected to rural Arkansas

Western Scene Employee news

Office Locations and Loan Officers

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Arkadelphia 2858 Walnut (870) 246–8061 Rachael Godwin, David Smith

Greenbrier 89C N Broadview St. (501) 679–5464 Cecil Oursbourn, 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, Dan Benton

Paris 3772 W Hwy 22 (479) 963–2841 Donna Cunningham

Bentonville 1080 SE 14th St., Suite A (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, Michael Ferguson

Clarksville 1007 Interstate Dr. (479) 754–2876 Anna Lester, Sherry Boen

Huntsville 14238 Hwy 412 (479) 738–6622 Misty Eastep

Russellville 2797 E Parkway (479) 968–5030 Jim Taylor, Anna Lester

Danville 302 E 5th St. (479) 495–2711 Lora Briggs

Magnolia 1703 Pittman St. (870) 234–8611 Shaun McKamie

Siloam Springs 4970 Hwy 412 East (479) 524–6754 Savannah Dickinson

De Queen 800 E Magnolia Ave. (870) 584–3113 Jordan Pearce

Mena 1607 Hwy 71 North (479) 394–1027 Rex Dollar

Texarkana 2305 Trinity Blvd.

(870) 772–1882 Jonathan Shumate, Jennifer Hooper, Rustin Watson

Fort Smith 12907 Hwy 71 South (479) 434–4040 Andrea Leding, James Crabtree

Morrilton 1329 Hwy 9 (501) 354–2377 Hank DeSalvo

Glenwood 131 Hwy 70 East (870) 356–2023 Adam Baker

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

Board of Directors Chair Randy Arnold, Alma

Letter from Randy Arnold, Board Chair

Vice Chair Chuck Davis, Jr, Ashdown Kenny Brixey, Casa

After 39 years of service to Farm Credit, CEO Glen Manchester is retiring on December 31, 2018.

He is serving as an advisor to the board of directors through the end of the year. The board thanks Glen for the role he’s had in helping the association grow and diversify during his tenure. We wish him well as he enjoys retirement, which we know will include more time with his family.

Troy W. Buck, Alpine Steve Burke, Washington Scott Carter, Danville Bob Dixon, Havana Dusty Hampton, Russellville Kim Hogan, Ozark Ron Hubbard, London Bill Linton, Dover Kenny Martin, De Queen Gene Pharr, Lincoln Mark Wilcox, Greenbrier L. Duane Wilson, Springdale

I’m thrilled to tell you that our association is having another phenomenal year! New money lending is on track to surpass 2018 goals. Employees are hard at work and Western Arkansas has grown by 519 new members, so far this year. Rural lending is strong in western Arkansas. Our association is in the capable hands of an experienced senior management team and a proven staff of committed employees.

Interim CEO Tom Cox

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 Editor Jill Robertson Jill.Robertson@farmcredit.com Contributing Writer and Photographer Lindsey Triplett Lindsey.Triplett@farmcredit.com

The board has appointed Tom Cox as interim CEO. We appreciate his willingness to step out of retirement and serve in this capacity while the board begins the CEO search process. Tom served as a member of the senior management team from 20012017. He retired in February of 2017 after a 40-year Farm Credit career that included sales and marketing, communications and training responsibilities.

Please know that the directors you’ve elected are focused, as well. We’ve hired a third-party who understands the Farm Credit System to guide us through the CEOsearch process. We plan to be as transparent as possible and keep membership informed as the process unfolds.

With changes happening in our association, it’s a good time to remind you that members have a responsibility to vote in our upcoming election. Director and Nominating Committee candidate information will mail with ballots in mid-September.

Please review candidates thoughtfully, and cast your vote.

myaglender.com Article quotes have been edited for content and appropriateness.

Randy Arnold Chair, Board of Directors

Follow us on social media!

Find us at “Farm Credit of Western Arkansas” on Facebook, and @FarmCreditWEAR on Twitter and Instagram.

Glen, thank you for 39 years of Farm Credit service!

From Iowa, Glen began his financing career with the Farmers Home Administration. He worked for Production Credit Association from 1979 – 1982, at which time he took a management position with Ouachita PCA and moved to Arkansas. Glen held management and regional operations roles with PCA, which became Farm Credit SW in 1985 and, finally, Farm Credit of Western Arkansas in 1989. He was Executive VP over southern Arkansas before being named CEO of Western Arkansas in 2005. Directors, members and employees extend their appreciation and wish Glen well in retirement.

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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Letter from Glen Manchester This edition of The Rural Scene announces my transition from CEO to a new role as Board Advisor until my yearend retirement. Since my career began in 1979, I’ve seen change from many perspectives. It can come in subtle, quiet deviations or bold, dramatic changes. At the beginning of my CEO tenure in 2005, Western Arkansas held $500 million in loans, was highly concentrated in poultry, and experienced high employee turnover. Bold changes were needed.

Transformation was needed to address a high concentration of poultry in the association’s portfolio. We wanted to expand poultry lending, not withdraw from it. Therefore, we researched and recommended further diversification and increased income by lending into the capital markets (financing portions of mega-agribusiness loans). Rather than greatly increasing our costs, a first-of-itskind partnership was negotiated with five other Farm Credits.

This collaboration now brings an average of six million dollars per year to Western Arkansas’ bottom line.

To further diversify the loan portfolio during my tenure, the rural home program was revitalized. We created a more competitive product by aligning interest rates to be more like the monthly-pay interest rates of our competition.

With new processes, employees have sped up the time from application to closing, which benefits members. The rural-home program now generates an average of 23% of the association’s new money and adds new customer/ stockholders.

Also during my tenure, we greatly expanded opportunities for individual employees with various skills and aptitudes to excel. This was achieved via non-centralized specialization and enhanced training. This allows branch staff to focus on being skilled relationship managers while others handle specialized loan responsibilities. This employee configuration increased efficiencies and created an array of specialized jobs. Additionally, the Board had faith in management to empower employees and create a high level of engagement and opportunities.

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The primary Western Arkansas goal, of course, is to serve members and ensure that their financial cooperative is strong and viable for the next generations of farmers, ranchers and rural residents. I’m proud of the association’s solid track record on patronage - with more than $110 million in patronage cash going back into members’ hands since 1997. In the past decade, we’ve also reversed a declining customer number trend and grown customers by more than thirty percent. Your Farm Credit has a strong capital position, high credit quality and low delinquencies. Without a doubt, the association is in a very good place.

I am pleased the Board has appointed Tom Cox as interim CEO. Until his retirement last year, Tom served in many roles at Western Arkansas from 2001-2017; including starting this member publication. As a senior manager, he was responsible for several innovative changes in marketing, sales, communications, training, and collaboration with other Farm Credits.

In closing, thank you for your words of encouragement, acts of kindness, and trust of leadership over the many years.

I’m taking many fond Farm Credit memories with me as I transition to retirement. I truly wish members, employees and directors all the best. The rural community will always be at the center of my most avid thoughts.

In fact, as I reflect on my nearly 40-year Farm Credit career, I’m most proud of working with others to make rural Arkansas a better place to live, work and prosper. From directors, to affiliated groups like 4-H, FFA, and universities, to other Farm Credits, commodity groups, and many others, I have loved working with folks that are truly passionate about rural concerns.

Finally, I am looking forward with great excitement to being with my family on a routine basis. I thank Lana, Dayne, and Darya for their unending support.

Wishing you God’s richest blessings,

Glen Manchester

DIRE C TO R SC E N E

Annual Director Election Watch for your ballot by U.S. mail, voting is your right as a cooperative member.

• Director candidate information and ballots will mail in mid-September.

• Ballots will be addressed to voting stockholders as of date of record – July 31, 2018.

• Review the candidate information and return ballot in the postage-paid envelope provided.

• Voting stockholders are responsible for electing directors and nominating committee members annually.

• For a ballot to be eligible, it must be signed by the voting stockholder. If multiple people are on a loan, check the ballot envelope to verify the voting stockholder’s name.

• Ballots must be received by 4:30 PM on October 15.

• Results announced by October 16 and posted at all branch offices and at myaglender.com.

Your vote also supports Arkansas youth!

You vote, and Arkansas FFA and 4-H benefit! For every eligible ballot received, Farm Credit of Western Arkansas will donate $10. Funds will be split evenly between the Arkansas FFA Foundation and Arkansas 4-H Foundation.

2018 Director Candidates Listed Alphabetically (All Positions for a four-year term.)

AREA 2

Dusty Hampton • Pope Timothy K. O’Neal • Franklin

AREA 3

Scott A. Carter • Yell Cody R. Jones • Sebastian

AREA 5

Julie A. Lively • Hempstead Juan A. Rivera • Hempstead

2018 Nominees For Association Nominating Committee (All areas for a one-year term)

AREA 1A

Kevin D. Harmon • Benton William “Will” P. Lane • Benton

AREA 2A

Justin “Taylor” Gattis • Franklin

AREA 1B

Johnny L. Gunsaulis • Washington Ronnie T. Horn • Washington

AREA 2B

AREA 4A

Ronnie D. Hall, Sr. • Faulkner Jerry L. Hartwick • Faulkner

AREA 4B

James W. Mann • Perry Fred Nutt • Perry

AREA 3A

Allen L. Johnson • Logan Gerald W. Strobel • Logan

James A. Ford • Franklin Mary “Jeana” Sing • Franklin

AREA 3B

Casey T. Cotton • Logan Shawn A. Ezell • Logan

AREA 5A

Rainna K. Ghormley • Hempstead Randy W. Peck • Hempstead

AREA 6A

Patricia A. Maben • Sevier Michelle K. Sawyer • Sevier

AREA 5B

Linda Kitchens • Howard Dana Newberg • Howard

AREA 6B Monte K. Davis • Sevier

Ernest J. “EJ” Neissl • Franklin

Jacob Hooper • Sevier

Director Troy Buck Retires Mr. Troy Buck has chosen to retire as a Director this year. In appreciation of Mr. Buck’s more than 20 years of service, the association has donated $250 to the Centerpoint High School FFA chapter and $250 to the Alpine Volunteer Fire Department. Thank you, Mr. Buck, for your committed leadership to Farm Credit.

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M E M B E R SC E N E

MANAGING THE FOREST FROM ONE GENERATION TO THE NEXT. Three generations of Neeley family foresters serving landowners, sustaining forests and looking to the future.

Story by Jill Robertson; Photos by Jill Robertson & Lindsey Triplett

A shared passion for managing timberland, serving landowners and sustaining forested areas fuels the successful, full-service forestry management business owned and operated by three generations of the Neeley family in Camden, Arkansas.

Founded by patriarch Jim Neeley in 1972, Neeley Forestry Services provides timber management and real estate services to clients in Arkansas, Louisiana and Texas. Jim launched the business with the vision of, “Managing the forest from one generation

to the next.” This ideal is the firm’s goal and mission statement still today.

The company has managed area forests for 46 years. Interestingly, their mission statement has taken on increased meaning as three generations of Neeleys now work side-by-side as foresters in the family business.

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Father, son and grandson share another bond, as well. They love the outdoors, hunting and fishing, and sustaining forests for future generations.

Their History The Neeley family settled in Ouachita County in the 1850s. The original homestead has been in the family for six generations.

As a child, Jim Neeley remembers his father Floyd, Sr. buying timber and working with regional sawmills. Jim earned his forestry degree from Arkansas Agricultural and Mechanical College (now The University of Arkansas at Monticello) – forging a path that both his son and grandson have followed.

To assist his father, Jim says he began managing tracts of private timberland in college. He worked for major timber and paper companies upon graduation.

“In those early jobs I recognized that landowners could benefit from both representation and good advice,” Jim explains.

PHOTO ON RIGHT – A cabin on the original Neeley homestead is the center of family gatherings.

Seeing that need and knowing he could assist landowners led Jim to start the business with 25,000 acres of managed land. The company doubled by the time John David (J.D.) joined his father in 1985 after earning his own forestry degree from UAM. At that time, J.D. explains, the core of the business was timber management. By the late 1990s, J.D. had his real estate and appraiser licenses, allowing the business to further grow and diversify.

Today, J.D. serves as president and principal broker as well as a certified general appraiser, specializing in timberland, pastureland and recreational properties.

Jim, founder and forester, maintains a full-time schedule of client visits and consultations as the business now manages more than 225,000 acres for clients.

J.D.’s son Daniel, forester and real estate sales, signed on in 2012. Following family tradition, he earned a forestry degree from UAM. He has an MBA from Southern Arkansas University and brings a strong set of GIS, real estate and technology skills to the company.

“It’s in our Neeley blood,” J.D. smiles and explains. “We love the land and have a tradition of following in our father’s footsteps.”

J.D. further explains that the Neeley family legacy includes giving back. He points to his late mother Rachel Daniel Neeley as a strong role model for how to treat others and give back to the community. He says her influence shaped who he is today.

“I admired my mother because she was always helping people,” J.D. shares. “We find great satisfaction in helping forest landowners achieve their goals.”

Neeley Forestry Service Camden, AR • Shreveport, LA Neeleyforestryserviceinc.com Forest management services • Timber sale preparation and marketing • Timber inventories • Timber management (silviculture practices including tree planting, prescribed burning, fertilization, mechanical and chemical site prep, woody release and herbaceous weed control) • Boundary line establishment and maintenance • Certified Appraisals • Hunting lease administration • United Country Neeley Forestry real estate sales • Wildlife management • GIS database management • Drone services (sUAV/ remote pilot) • Forest certifications A professional staff of 15, including six registered foresters, three forest technicians and a certified wildlife biologist.

M E M B E R SC E N E The drone is a business tool for Daniel. It allows the company to more efficiently manage timber stands and provides aerial footage of property to potential buyers on the real estate side of the business.

Generation To Generation Managing timberland is a long-term process. A newly-planted stand of pine trees is first thinned at age 10 to 14, and might not reach final harvest size until age 25 to 35 years. The long growth cycle means the Neeleys have worked with several generations of the same families. In fact, Jim is currently working with a third-generation family member of one of his first clients from 1955.

Technology, And Beyond Not surprisingly, technology is playing an important role in increasing the family’s business efficiencies.

Daniel is responsible for staying abreast of new, evolving technology that can better serve both their clients, and their business needs. He uses GIS (geographic information systems) to better manage timber stands and has implemented software that improves database management, allowing the company to more easily grow and diversify.

Most recently, Daniel earned his remote pilot’s license in order to handle small unmanned aircraft for business operations. The remotely piloted aircraft is used to survey timberland, market real estate and more.

“Out-of-state clients expect aerial footage of real estate today,” Daniel explains. “Drone footage captured from my quadcopter is a must on the real estate side, but it’s also saving us time as we manage timber tracts. It’s a game-changer for both our clients, and our business.”

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J.D. says improved genetics is changing the timber

industry, as well. Faster growing trees translates into a win for landowners who wait upwards of twenty-five years for harvest and a return on their investment.

“Timber is for the patient investor,” J.D. chuckles.

“These are great days for forestry,” J.D. adds.

“Industry techniques have evolved, we have the best genetics we’ve ever had, and better silvicultural tools to help us manage the forest for our clients.”

Offering Their Clients More J.D. says it’s been important to grow and add more client services over time.

“A year ago, we added a certified biologist to our staff to provide wildlife management services,” J.D. explains. “In adding him to our knowledge base we hope to meet desires of landowners. Ensuring land attracts wildlife for hunting is important to recreational property owners. We continually diversify by recognizing and meeting client needs.”

Hunting lease management is an example of a service driven by client need. Lease income can often offset annual property taxes, J.D. says, making property more attractive to buyers. Arkansas land is some of the best and most affordable in the South, he adds.

From the sale and purchase of property, to the life-cycle management of forested land, to valueadded services like appraisal and hunting lease management, to, finally, the sale of timber to the mill, the Neeleys can manage and coordinate a client’s every need.

“We all bring different talents to the table,” Jim explains. “That’s worked to our advantage.”

Consumer-Driven Needs Consumers want wood and paper products from sustainable sources. This trend is driving the need for certified-sustainable timber. According to J.D., mills over the past ten years have been requiring a much higher percentage of wood to come from sources certified by sustainable forest programs. Timber certification means that the forest has an approved sustainable management plan and established chainof-custody from the trees to the final wood processer.

The Neeleys have added certified management services to meet this demand.

While the Neeleys understand the emphasis on certified timber, they admit it is creating a logistical challenge.

“It is increasingly becoming more difficult to thin non-certified pine pulpwood,” J.D. says. “If we can’t get a forest thinned or cut at the right time, it disrupts the entire management plan. That, in turn, begins to impact a client’s income streams, especially if they

have payments pending with a lender.”

As of August, Neeley Forestry now has an office in Shreveport, LA with Sam Crawford as the Louisiana manager. This expansion into northern Louisiana offers their clients and real estate services a much broader marketing base, J.D. explains.

Farm Credit’s Role

M E M B E R SC E N E

Jim points to their varied skills and how the three generations complement one another as one reason for their success and ability to grown and diversify.

The Neeley’s began working with Farm Credit in 2011. Vice President Regional Sales Timber/Forestry David Smith and Vice President Rachael Godwin of the Arkadelphia branch office have both assisted them with financing needs.

“Farm Credit is a good fit for us,” J.D. explains. “We started financing with Farm Credit about the time we became more aggressive with purchasing our own large tracts of company land.”

“Long-term, competitive fixed rates are a big reason it makes sense for us to finance large tracts with Farm Credit,” he continues. “The fact that David and Rachael understand the nuances of the timber industry is another benefit. Many banks don’t understand timber, so we’ve come to appreciate how Farm Credit’s expertise simplifies the lending process for us.”

Farm Credit has employees like long-time forester David Smith (left) who understand the industry and lending needs of timber customers.

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“I’ve known Jim and J.D. for years,” shares David, a long-time forester. “Our paths naturally crossed a number of times over the years and I already had a lot of respect for the Neeleys and their operation when we began discussing how Farm Credit might benefit their business.”

“The Neeley’s make our job easy,” adds Rachael Godwin. “They have a clear plan when they come to us and their proven success speaks for itself. The fact that several generations of the same families trust and do business with them is testament to their character.”

“They have a strong reputation in the timber industry,” David adds. “They are respected for their forestry management skills and trusted by their clients.”

Financing agribusinesses, like Neeley Forestry Services, is an example of what Farm Credit can do outside of traditional farm, livestock and rural home lending. As a financial cooperative, Congress created the Farm Credit System more than 100 years ago to serve the needs of rural America.

Reliable, competitive lending for agribusinesses in rural Arkansas is an important part of that mission.

Agribusinesses serve important needs and add to the local economy of rural communities.

What The Future Holds When asked about future plans, J.D. says working to expand markets for their clients is a continual priority.

But above all, managing timberland for many more generations is their ultimate goal.

With more than 60 years of professional forestry experience, Jim Neeley has an active role in daily business operations.

“We’re in it for the long-term,” he explains. “We’re proud of what we’ve accomplished. It’s the Neeley family legacy to give back to the land, promoting forest stewardship and conservation.”

J.D. Neeley named Arkansas Game and Fish Commissioner Governor Asa Hutchinson appointed J.D. Neeley to the Arkansas Game and Fish Commission on July 3, 2018 for a seven-year term.

“J.D. loves the outdoors, he loves to hunt, and through his membership in a dozen boards, associations and his church, he has shown a commitment to serve others,” Gov. Hutchinson said. “His experience as a businessman and his knowledge of the land as a forester, an appraiser and a realtor will make him a valuable member of the Arkansas Game and Fish Commission and give him an appreciation of our state’s conservation efforts.”

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“We are blessed in Arkansas to have such a rich, beautiful combination of landscapes, ecosystems and habitat, and an abundant assortment of wildlife,” Neeley said. “I’m deeply honored and humbled to be able to serve the governor and the state to help manage the wildlife and continue to practice conservation.

“I have spent a career in forestry, and I understand that good forestry is good wildlife management. With a healthy forest, we can have healthy wildlife. I want us to continue to work with private landowners, to expand good management and good wildlife practice.

“But our children are our most valuable resource. We have got to bring the next generation into the outdoors.

We are losing touch with the outdoors.”

Neely has served on the boards of the Arkansas Forestry Association and the Arkansas Game and Fish Foundation.

“I cannot say enough about the great work these organizations accomplish,” Neeley said. “Deke Whitbeck and President Rutledge at the Foundation have done things that are the envy of all the states around us, and I can’t wait to get started working alongside them and the Arkansas Game and Fish Commission.”

Nationally, the Farm Credit System has established working relationships with legislators on Capitol Hill, the administrative branch, and agricultural stakeholder groups in Washington, D.C. The Farm Credit Council, specifically, works to ensure Farm Credit association and member needs are understood.

Great strides have been made in the past several years in communicating Farm Credits’ purpose, as well as the need for reliable, dependable credit for farmers and rural homeowners. Policy makers are also now more aware of rural America’s need for improved infrastructure, thanks to Farm Credit’s efforts.

Farm Credit Directors and CEOs from across the state participated in a national Fly-In event in July.

The Arkansas contingency hosts an annual breakfast for Arkansas legislators and their staff members.

It’s become an opportunity for Farm Credit association designees to hear, first-hand, what elected representatives see as Arkansas priorities and hear about their work on behalf of Arkansas agriculture.

N AT IO N AL FARM C RE DIT SC E N E

National Farm Credit DC Fly-In

This year, Senators John Boozman and Tom Cotton and Congressmen Bruce Westerman, French Hill, and Rick Crawford attended. Congressman Steve Womack was unable to attend due to a committee meeting conflict. Legislators addressed the Farm Credit group and provided updates on the pending Farm Bill and other legislative efforts impacting Arkansas.

1. Congressman Rick Crawford briefs the Farm Credit delegation on current Arkansas ag issues. 2. Senator John Boozman visits with a Farm Credit Director and Rick Crawford talks with CEO James McJunkins of Farm Credit Midsouth. 3. Directors discuss issues with Congressman French Hill over breakfast. 4. Senator Tom Cotton learns about Farm Credit’s commitment to rural Arkansas from Directors. 5. Congressman Bruce Westerman, left, shares friendly conversation with part of the Farm Credit delegation.

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C O O P E RAT IVE SC E N E

Farm Credit upholds seven cooperative principles.

7 Cooperative Principles Voluntary Membership Democratic Member Control Members’ Economic Participation Autonomy and Independence Education, Training, and Information Cooperation Among Cooperatives

Election Process

Concern for Community

Democratic Member Control Cooperatives are democratic organizations controlled by their members, who actively participate in setting policies and making decisions. Directors are elected from the membership and are accountable to the membership.

Members have equal voting rights – one member, one vote.

As a financial cooperative, Farm Credit customers are more than customers. They are members. As members, they have a say in how the association does business. Members do this by electing fellow members to serve as directors and guide business decisions. Together, directors and senior management work to ensure the association is meeting member needs.

Electing directors is a democratic practice that relies on member participation. Members are responsible for selecting which fellow members will best represent their financial interests. As with any democratic action, the election process is most representative when all members actively participate.

Members are encouraged to carefully review the candidate information included with the annual ballot and support their association interests by voting.

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Voluntary Membership

Rebuild Rural Coalition

Democratic Member Control Members’ Economic Participation Autonomy and Independence Education, Training, and Information Cooperation Among Cooperatives Concern for Community

Farm Credit associations support rural communities at the local, state and national levels.

Nationally, Farm Credit has joined the Rebuild Rural Infrastructure Coalition which is comprised of more than 200 organizations from across the country focused on rural communities, agricultural producers, rural businesses and rural families.

The Rebuild Rural Coalition is dedicated to advocating for investment in rural America’s infrastructure.

Rural communities have seen their infrastructure deteriorate, jeopardizing their jobs, their families’ health and wellbeing and their competitiveness in both agricultural and other industries important to rural America.

Some of rural America’s most

pressing needs are transportation infrastructure improvement of highways, bridges, railways, locks and dams, harbors and port facilities.

Critical needs also exist in providing clean water for rural families, affordable housing options for rural residents, expanding broadband to connect rural communities to the outside world, updating agriculture research facilities so the rural economy can remain competitive and enhancing the ability to supply affordable, reliable and secure power for the rural economy.

C O O P E RAT IVE SC E N E

7 Cooperative Principles

Concern for Community Cooperatives work for the sustainable development of their communities through policies supported by the membership.

Public-private partnerships and other creative solutions are necessary to meet the challenges of rural America because Federal investment in infrastructure cannot fully meet all needs. The Rebuild Rural Infrastructure Coalition is a resource that stands ready to address infrastructure solutions in rural America.

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Farm Credit upholds seven cooperative principles.

AG SC E N E

Arkansas Ag Scene Regional Credit Analyst Clayton Whittmore of the Green Forest branch office is a great example of how Western Arkansas employees are engaged in agriculture. Clayton and wife Kristin serve as advisors for the Arkansas Junior Simmental Association and were actively involved in helping the group host the South Central Regional Simmental show in Fayetteville in mid-June. The Arkansas group last hosted this show in 2012 under the Whittmore’s leadership, as well.

The four-day event drew 112 youth and 192 head of cattle from 12 states. Clayton and Kristin were responsible for raising the $40,000 it took to host the event, which has become known for quality prizes.

The Junior Simmental Association is unique in that it places an emphasis on participant education.

Members are expected to demonstrate knowledge beyond the show ring. There are five competitions and a participant’s top four scores count toward overall standings.

• Sales Talk – mock sell cattle to two judges, detailing their animal’s best qualities • Public Speaking – extemporaneous speech on beef topics • Cattlemen’s & Genetics quizzes – beef industry and cattle genetics knowledge • Livestock Judging – juniors give one set of reasons, seniors give two • Showmanship & Cattle Show – present their animal in the show ring

Clayton and Kristin Whittmore are active Arkansas Junior Simmental Association advisors and Carroll County 4-H Beef Club leaders.

“The educational contest is the biggest take-away for youth,” Clayton explains.

“It truly prepares them for life. The quizzes help them learn more about cattle, how to breed better cattle and makes them more knowledgeable about the beef industry so they can be an advocate. Public speaking, judging and sales talk gives them an excellent opportunity to get in front of judges and be able to communicate with adults and their peers. No matter what they do in life, it gives them the skills to be able to communicate and to be a leader.”

Kylee Sigmon of Berryville has been active in the AJSA since 2009 and says the educational component has benefitted her personally and is influencing her career path.

“I know the public speaking and sales talk experience has given me confidence,” says Kylee who is also a 2016 National Beef Ambassador. “I’m pursuing an ag business and ag communications degree because of my AJSA experience.”

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“We have kids of all ages in our group,” Kristin shares. “The association offers something for kids of all ages. Clayton and I have children ages five and one. I’ve seen our five-year-old grow so much over the last year. She’s competing in sales talk and all the contests that the older kids are doing, just at a lower level. When I look at other kids her age, there’s no

comparison to what it offers kids as far as confidence and being able to speak in front of a group.”

role of Junior Advisors when the group needed leadership in 2009.

Clayton and Kristin have also lead the Carroll County 4-H Beef Club for several years. The two say they volunteer their leadership because they enjoy the activities and know the organizations make a difference in the lives of participants.

“Clayton and Kristin are truly influential with all the youth they work with,” adds parent volunteer Lisa Sigmon. “They put in a lot of time and effort to ensure club members are getting everything possible from the activities. Kids in our club get so much more than kids in other clubs because of the Whittmores’ commitment.”

“Showing Simmental cattle gave me opportunities to go places and see things that I never would have growing up,” Clayton says when asked why he volunteers. “I know what it did for me, and I just want other kids to have those same opportunities.”

Thank you, Clayton and Kristin, for your commitment to the AJSA and Carroll County 4-H Beef Club. Your leadership is impressive and you’re truly Enriching rural life!™

In 2008 Kristen and Clayton got married and began building their Simmental herd. They accepted the NWA Farm Credit employees supported Clayton and Kristin by cooking a meal for event competitors.

Employee Volunteer Leadership is Rewarded Farm Credit is proud of the volunteer leadership that employees like Clayton Whittmore give to organizations in their communities.

Western Arkansas has a Community Involvement Program that acknowledges the volunteer work employees do personally, on their own time.

Employees can apply for a $500 donation to the non-profit organization they regularly work with.

Clayton’s leadership qualified the Arkansas Junior Simmental Association for a $500 Farm Credit donation this year.

$280,000 in scholarships awarded over past 20 years

20 Area Youth Earn $1,000 Awards

Farm Credit of Western Arkansas awarded $20,000 in academic scholarships to some of western Arkansas’ most talented young people again this spring.

A panel of judges looked at academic performance, school and community leadership, extracurricular activities, and agricultural interests and pursuits to formulate the list of 2018 recipients. Winners have proven themselves as leaders in their peer group.

Some were raised on farms and have future career

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aspirations that include farming or the rural lifestyle.

Others value agriculture, but are following less agricultural career paths. All are making notable contributions in their communities.

We proudly support these students, their accomplishments, and all they will achieve through education. Thank you for representing Farm Credit on campuses across the state and region. Thank you to all who applied. Look for 2019 scholarship program details at myaglender.com, after January 1, 2019.

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C O M M UN IT Y SC E N E

Mount Ida FFA The Mount Ida FFA Shooting Sports team competed in the National Junior Olympics in Colorado Springs this summer.

Financial Services Specialist Danielle Brown and Appraiser Brian Cowart of the Glenwood office presented a Farm Credit donation to assist with expenses and ammunition for the eight-student team.

Rainbow of Challenges Assistant VP Clay Lance’s volunteer work with Rainbow of Challenges, Inc (ROC) in Hope qualified the organization for a $250 Farm Credit donation. ROC administers a wide array of services for persons who have developmental disabilities in south Arkansas.

Special Olympics Torch

Senior Ag Tour We were excited to be a stop on the Arkansas FFA Senior Ag Tour in June. We had lunch with FFA members from across the state and shared how Farm Credit supports agriculture.

Assistant Vice President Clay Lance of Hope ran 8 miles in the Special Olympics Torch Run. Clay is on the board of directors for Rainbow of Challenges, Inc., which offers services for persons with developmental disabilities in south Arkansas.

ATU Agriculture Golf Tournament We were proud to be the event sponsor for the ATU Department of Agriculture's 5th Annual Scholarship Golf Tournament. The event raised $17,000 for agriculture scholarships.

Alumni Award Arkansas Hunger Relief Alliance Western Arkansas again partnered with fellow Arkansas Farm Credit associations to support the Arkansas Beef Project through the Arkansas Hunger Relief Alliance. Our $5,300 donation provides beef to food-insecure Arkansans.

Senior Vice President/ Senior Operating Officer Perry McCourt was recognized as an outstanding alumni and supporter of the Arkansas Tech Department of Agriculture. We're proud of Perry's commitment to his alma mater and his continuous support of students studying agriculture.

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C O M M UN IT Y SC E N E

State Officer Dinners

Community Clean Up April storms caused damage in Mountainburg and Western Arkansas employees from across NWA joined in the clean-up effort.

Western Arkansas, AgHeritage Farm Credit Services and Farm Credit Midsouth hosted newly-elected Arkansas FFA and Arkansas 4-H state officers at special dinners this summer.

Curriculum for Ag Science Education ATU’s Department of Agriculture hosted 32 ag teachers from 10 states for their 2018 Curriculum for Agricultural Science Education (CASE) Institute this summer. Teachers engaged in professional development workshops, choosing either plant science or agricultural power and technology training.

Photo courtesy of ATU’s Liz Chrisman.

FFA State Convention Farm Credit joined over 2,200 FFA members, advisors and guest at the 91st Arkansas FFA Convention and Expo.

The Pack Shack

Arnold Day on the Farm Each year we look forward to Fun on the Farm at the Arnold Family Farm. The Arnold’s host the threeday event for 800 elementary-age children and 200 parents at their Alma farm so that participants can learn about agriculture and where food comes from. Farm Credit Board

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of Directors Chairman Randy Arnold and his family coordinate the event that includes a longstanding tradition of allowing the children to pick strawberries.

In May, our Young Professionals group of employees packed 10,248 meals with The Pack Shack as a service project and then distributed the meals to local food pantries across western Arkansas.

FFA Career Panel Two members of our marketing team, Jill Robertson and Lindsey Triplett, attended a career panel during Arkansas FFA’s Arkansas Leadership Camp (ALC).

We proudly presented two, new $1,000 Farm Credit of Western Arkansas Scholarships at the Arkansas FFA State Convention in April.

Congratulations to Alisun Watson from the Decatur FFA Chapter and Wyatt Petty from the Mountain Home FFA Chapter for being selected as this year’s recipients.

Applications for 2019 FFA/ Farm Credit scholarships will be available on the Arkansas FFA website in early 2019.

NEW! College Agriculture Scholarships To further support students pursuing agriculture careers, Western Arkansas has established new scholarships at three western Arkansas universities.

Information for 2019 awards is available at each school’s website and recipients are selected by each university’s agriculture department, or faculty.

Best Partner to Arkansas Markets Farm Credit of Western Arkansas, AgHeritage Farm Credit Services and Farm Credit Midsouth, together, partner with the Arkansas Agriculture Department to support farmers markets across the state with a publicity grant program.

Farm Credit has provided $16,000 in funds over the past two years.

The Arkansas Farmers Market Association presented Farm Credit with the award.

C O M M UN IT Y SC E N E

NEW! FFA Scholarships

Southern Arkansas University – Haley Strickland (Ag Education) and Maria Rubio (Ag Business).

The University of Arkansas - Guillermo Tellez (Poultry Science) and Kathryn Gardner (double major in Ag Education, Communications and Technology & Ag Economics/Ag Business) Arkansas Tech University - Samuel Robinson (Ag Business) and Savannah Davis (Ag Education)

NEW! Farm Credit Adam McClung Leadership Scholarships Farm Credit of Western Arkansas partnered with AgHeritage Farm Credit Services and Farm Credit Midsouth to create two, $1,000 annual scholarships in memory of Adam McClung. Adam was President of the Arkansas Cattlemen’s Association and a proven leader and advocate for Arkansas cattle producers and Arkansas agriculture before his death in 2017.

2018 recipients are Sara Gardner of Fayetteville and Allyson Sellers of Vilonia. The Arkansas Cattlemen’s Association administers and awards these scholarships, see their website for 2019 Farm Credit scholarship details.

NEW! 4-H Scholarships We also proudly presented two, new $1,000 Farm Credit of Western Arkansas Scholarships at the Arkansas 4-H O’Rama in July. Sagely Burnett from Winslow and Violet Mefford from Jasper were selected as this year’s recipients. Applications for 2019 4-H/ Farm Credit scholarships will be available on the Arkansas 4-H website in early 2019.

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W E ST E RN SC E N E

New Faces ADAM BAKER joined Farm Credit in June as a Loan Officer in Glenwood. As a fourth-generation Pike County farmer, Adam is familiar with poultry and beef cattle operations. He graduated from Centerpoint High School and earned an ag business degree from Arkansas Tech University in 2016. He formerly worked in the poultry industry and lives on Baker Farm and raises cattle. In his free time, he enjoys hunting and fishing.

JOSH DUNLAP brings 18 years of

JANUARY BENNETT joined the Texarkana branch office in late July as a Financial Services Specialist. She has 10 years of commercial banking experience. Raised in Fouke, she lives in Genoa, AR with husband Jay, children Jarek (age 13), TJ (age 18) and Dekota (age 20). The Bennett family enjoys camping and kayaking. Welcome, January!

HEATHER WALSTON joined the Farm Credit team in late August as a Financial Services Specialist in the Mena office. Heather is a Mena area native and has 8 years of local banking experience. She and husband Matt have a daughter Claire (age 12) and son Ryan (age 9) and the Walston family lives on a 40-acre farm in Hatfield. Welcome, Heather!

commercial banking experience to his new position as Vice President and Loan Officer in the Greenbrier branch office.

He earned a finance degree from the University of Central Arkansas. Josh was raised in Greenbrier and that’s where he and wife Mandi and children Lydia (age 14) and Luke (age 11) continue to make their home. On the weekends, you’ll find Josh logging training miles for the numerous marathons he routinely runs.

Changing Places GAYLYNN ALVEY transitioned from Financial Services Specialist to Loan Document Specialist on July 1. She will continue to work in the Russellville branch office.

Financial Services Specialist BREANA BREWER transferred from the Morrilton branch office, to the Russellville office.

JOYCE RIDENOUR in the Fort Smith branch office moved from Loan Document Specialist to Financial Services Specialist II in July.

MORGAN WHITE transitioned from Regional FSS to Financial Services Specialist at the Arkadelphia branch office.

TAMMY KNIGHTON was named Training Manager on June 1.

She was previously Training Coordinator and she will continue to work in the Russellville branch office.

Bentonville Office Moving This Fall Bentonville members will begin enjoying a larger and more convenient location late this fall. The new space is under construction in the BOS Business Park on SW Regional Airport Boulevard.

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W E ST E RN SC E N E

Summer Interns Keithen Harrell, Ryann Grubbs and Brett Bolin completed three-month summer internships in August. They conducted on-farm chattel inspections and other needed tasks for the association’s 23 branch offices.

Keithen is a senior at the University of Arkansas studying ag business and marketing. A third-generation soybean farmer, he was raised on a row crop and cattle farm in Marksville, LA. He worked for branch offices in northwest Arkansas and the River Valley.

“My favorite part of interning with Farm Credit has been working every day with the staff, learning the ins and outs of the company and seeing the difference we make in our customers’ lives,” Keithen said.

Ryann worked in our SW Arkansas branch offices. Being raised on a small cattle farm in Delight, AR sparked her interest in agriculture. She is a senior at Southern Arkansas University studying agriculture education.

“My favorite part of this internship has been traveling the state and meeting our amazing members. I love listening to their stories of how they got involved in agriculture and how

Farm Credit has helped make their lives easier.”

Brett Bolin is from Russellville and worked in the north Arkansas and River Valley offices. He is a senior ag-business major at Arkansas Tech University. While he doesn’t have a background in agriculture, he decided to pursue an ag business degree at ATU because one in six Arkansas jobs is ag-related.

He says he’s also been attracted to the character and values of people involved in the agriculture industry.

“Meeting the customers has been my favorite part of the internship,” Brett said. “Each one has their own unique operation and background. I’ve also enjoyed seeing more of rural western Arkansas.”

Our interns do a great job of jumping in assist our branch personnel with a variety of business needs. Thank you!

Ag Happenings at the State Capitol Farm Credit legislative liaison Scott Sullivan reports that agriculture had good representation and is expected to be unaffected by Arkansas’ Tax Reform and Relief Legislative Task Force’s report, due out at year end. The committee is considering a wide array of changes to the state’s tax structure but as of late July, ag-related tax exemptions remain untouched, and are not slated for further review.

Ag Innovation Challenge Farm Credit is partnering with the American Farm Bureau Federation (AFBF) to support entrepreneurs in a competition known as the Ag Innovation Challenge.

The contest honors creative rural entrepreneurs with food and ag-related businesses. Ten semifinalists will be announced November 9 and awarded $10,000. Four final teams will then be selected to win an additional $5,000 and an all-expense paid trip to compete in a live pitch competition at AFBF’s 100th Annual Convention in New Orleans on January 13, 2019. The final four teams will compete to be named Farm Bureau Entrepreneur of the Year ($30,000, in total winnings), or People’s Choice Award Winner ($25,000, in total winnings). www.fb.org/aginnovationchallenge.

3115 W. 2nd Court Russellville, AR 72801

Enriching rural life.

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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 • Bare land

• Recreational land • Timber tracts • Forestry products and processing

LAST CALL FOR OUR 2018 PHOTO CONTEST! Break out your camera and send us your favorite photos of rural western Arkansas!

It’s time for our annual photography contest. Send us your best photos by Monday, October 1.

The contest is open to both Farm Credit members and non-members in our 41-county Western Arkansas territory. There are two divisions: Adult and Youth (up to 18).

Cash Prizes 1st Place 2nd Place 3rd Place

$300 $200 $100

Find entry forms and complete details at myaglender.com. Landscape (horizontal) photos preferred for use in our 2019 calendar.

2017 2nd Place Photo by Caleigh Moyer