Rural Scene
THE
OP E R AT I ON O PEN S EAS ON C ONN E C TS VETERA N S W ITH H U NT I N G O P PORTU N ITIES . WINT E R 2018
Enriching rural life.TM
On the Cover Scott West and John Rowland share a passion for connecting veterans with hunting. Page 14
Rural Scene
THE
PUBLISHED BY
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 borrowerowned lending institutions providing more than $257 billion in loans to rural America.
In This Issue
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Director Scene Meet our three newlyelected directors 6,000th Member! We’ve reached another milestone in membership Member Scene
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Wounded veterans enjoy access to hunting land
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Kohl-laborations
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Community Scene
Innovative young cattle farmer Mason Faulkner
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2018 Photo Contest Results See this year’s winning photos!
Operation Open Season
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Ag-economist Dr. Kohl shares insights on retirement planning
Farm Credit supports rural western Arkansas Western Scene Association 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 Trey Villines
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 Kenny Brixey, Casa Vice Chair Bob Dixon, Havana
Letter from Interim CEO
Randy Arnold, Alma Steve Burke, Washington Chuck Davis, Ashdown Dusty Hampton, Russellville Kim Hogan, Ozark
It’s a privilege and honor to have the
Farm Credit associations in terms of overall
Ron Hubbard, London
opportunity to speak with you once again.
performance.
Stepping into the role of Interim CEO in early
A Few Parting Thoughts
August was something I couldn’t imagine when
We recently held meetings with employees
I retired in April 2017. For 40 years, Farm Credit
to discuss the CEO search process and get
had been my life. I had a great career and held
feedback about what is important to them in a
a number of important roles, but CEO was not
new CEO.
Cody Jones, Mansfield Bill Linton, Dover Julie Lively, Fulton Kenny Martin, De Queen Gene Pharr, Lincoln Mark Wilcox, Greenbrier L. Duane Wilson, Springdale
on my list. I am grateful for this opportunity, even if for just a few months. What an honor to be back at work for a company, culture and
Interim CEO Tom Cox
employees I care about so much.
In 2001, employees named this magazine Farming with Friends and Family. The relationship you have with employees transcends more than a financial transaction.
About the Rural Scene The Rural Scene is produced for members and friends of Farm Credit of Western Arkansas.
Over 6,000 Stockholders Strong
It’s a relationship built on trust and caring about
At the end of September, your Farm Credit
you, your family, your goals and your dreams.
surpassed a new milestone by adding its 6,000th stockholder. I can’t tell you how satisfying this is for me to see. The number of
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 Holtzclaw Lindsey.Triplett@farmcredit.com myaglender.com Article quotes have been edited for content and appropriateness.
voting stockholders when I came to Western Arkansas in 2001 was falling and nearing the 4,000 stockholder threshold. Stockholder growth can be attributed to a memberemployee centric cooperative culture, plus competitive lending programs, products, rates and your referrals. 2018 Another Banner Year The association is on target for another successful year in terms of new money loaned, strong credit quality, accrual loan growth and earnings. My praise goes to every Western Arkansas staff
Follow us on social media!
member. They are proof that when employees are engaged and empowered, there’s no end to the results they can achieve. We have a number of branch offices
Find us at “Farm Credit of Western Arkansas” on Facebook, and @FarmCreditWEAR on Twitter and Instagram.
performing at record levels in loaning new
Our employees recognize that they are part of a unique cooperative culture with a kindred connection to each other, and with you as member/owners. From my point of view, it is critical that the next CEO recognize and support this unique cooperative culture and assure it continues to thrive and grow. You belong to one of the highest performing, innovative and special cooperative cultures of any Farm Credit association out there. I want to thank the Senior Management Team for their support these past few months, as well as every employee for their encouragement during this transitional period. Thanks for welcoming me back with open arms. Finally, I want to say how much we appreciate your business and loyal support of Farm Credit of Western Arkansas. All the best to you and your family during the holiday season and I wish you a prosperous new year.
money. Never have we put two record-setting years like 2017 and 2018 in the books. Please join me in congratulating our staff for making your cooperative one of the more successful
Member of the Cooperative Communicators Association. © 2018 Farm Credit of Western Arkansas.
Tom Cox Interim CEO
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 the Board Chair Greetings from the Board Room. As a cooperative, Farm Credit adheres to the same seven, common cooperative principles that all cooperatives follow. These principles guide how our association does business in western Arkansas.
board will continue to make the critical decisions necessary to move the association in a positive direction. As Randy Arnold shared in the last magazine, Glen Manchester will be retiring December 31, 2018. The selection process is already underway for a new CEO and the board is working with long-time CEO search professional Jay Lux, of Farm Credit Council Services. Jay has placed 22 Farm Credit CEOs in the past 12 years. He is guiding our board through the process. The job was posted through late November for both external and internal candidates.
Members electing fellow members to serve as directors is one of the seven cooperative principles. Three director positions are up for election, annually. Two new directors were elected in October. Julie Lively of Fulton and Cody Jones of Mansfield. In addition, Dusty Hampton of Russellville won re-election. We are pleased at their willingness to tackle this challenge and join the discussion in the board room.
In December, candidates will be screened and evaluated. In January, the field of candidates will be narrowed to a few who can expect an interview with the full board. The board expects to name a new CEO by late January and for the new CEO to begin work by February 1st.
I join the board in thanking out-going directors Troy Buck and Scott Carter for their numerous years of service and dedication to the work of the association.
Please know that the board understands that our most important job as directors is to choose the right CEO for the association. We are striving to select the right individual with the competencies and leadership to continue the success that our members expect and deserve.
As is customary, the board elected a Board Chair and Board Vice Chair at the first meeting following the annual election. I am honored to serve as Board Chair, as is Bob Dixon, who has been elected Board Vice Chair. Please know we are committed to these responsibilities. It is my hope that the
Sincerely,
Kenny Brixey Board Chair
Members electing fellow members to serve as directors and help guide business decisions is an important part of our cooperative business structure.
Dusty Hampton
DIRE C TO R SC E N E
2018 Director Election Results
Area #2 – Representing Carroll, Madison, Newton, Franklin, Johnson & Pope Counties Term 2019-2023 Dusty Hampton will serve his third term since first being elected as a Farm Credit of Western Arkansas Director in 2010. He earned an Agricultural Business degree from Arkansas Tech University and has been a Research Manager with Tyson Foods since 2000. He has owned and operated poultry houses for the past 12 years. Dusty and his wife Sallie own and operate Hampton Farms which includes six poultry houses and 200 acres of land in Johnson and Pope Counties.
Cody R. Jones Area #3 – Representing Sebastian, Scott, Logan, Yell & Polk Counties Term 2019-2023 Cody Jones earned a Management and Marketing degree from Arkansas Tech University in 1999. He has five years of production experience with Tyson Foods and left his position as production manager in 2004 to begin farming full-time. He and wife Angela own and operate a 160-acre cow/calf operation with four broiler houses in Mansfield. The Jones family was honored as the Sebastian County Farm Family in 2010. This is Cody’s first term as a Farm Credit of Western Arkansas Director.
Julie A. Lively Area #5 – Representing Montgomery, Garland, Saline, Hot Spring, Grant, Howard, Hempstead, Pike, Clark & Dallas Counties Term 2019-2023 Julie Lively is serving her first term as a Farm Credit of Western Arkansas Director. She earned both undergraduate and master’s degrees in education from Southern Arkansas University. She has 19 years of experience as a teacher and instructional coach in Hope Public Schools. Since 2016, Julie has worked as an education and reading technology consultant for a private company. Julie and husband Steven own and operate a 150-head cow/calf operation in Fulton, four broiler houses in Nashville and two pullet houses in Hope.
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DIRE C TO R SC E N E
2019 Nominating Committee Members All serve a one-year term and are responsible for slating candidates for the 2019 director election. AREA 1A
Kevin D. Harmon • Benton
AREA 2A
Justin “Taylor” Gattis • Franklin
AREA 1B
Ronnie T. Horn • Washington
AREA 2B
James A. Ford • Franklin
AREA 3A Gerald W. Strobel • Logan
AREA 4A
Ronnie D. Hall, Sr. • Faulkner
AREA 3B Casey T. Cotton • Logan
AREA 4B
Fred Nutt • Perry
AREA 5A Randy W. Peck • Hempstead
AREA 6A
Michelle K. Sawyer • Sevier
AREA 5B Linda Kitchens • Howard
AREA 6B
Monte K. Davis • Sevier
Election result totals are available to stockholders upon request. Contact Ginger Tippit at ginger.tippit@farmcredit.com or 479-968-1434 (ext. 5119). Or, write to: Ginger Tippit, 3115 W. 2nd Ct., Russellville, AR 72801.
The Board of Directors The 15-member board includes both member-elected directors and board-appointed directors, as dictated by association bylaws. All serve a four-year term. • Membership directly elects 12 board positions. Terms are staggered and three directors are up for re-election annually. • One director position is a strockholder appointed by the board. • Two director positions are non-stockholders selected by the board.
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2019 Board of Directors: (front) Randy Arnold, Kim Hogan and Julie Lively; (middle) Cody Jones, Bill Linton, Bob Dixon, Dusty Hampton, Kenny Brixey and Mark Wilcox; (back) Kenny Martin, Duane Wilson, Ron Hubbard, Gene Pharr, Steve Burke and Chuck Davis.
M E M B E R SC E N E
Western Arkansas Tops 6,000 Members! Mandy and Kirk Stone’s membership marks a new milestone for the association
Mandy Stone’s parents Larry and Eva Watson are long-time Farm Credit members and she says it was an easy choice to call Western Arkansas’ Nashville branch office when she and husband Kirk were looking for a cattle loan this fall. Mandy and Kirk’s loan to purchase cattle from her father made Mandy the association’s 6,000th member in late September. This milestone reflects 37% membership growth over the past 10 years and the addition of almost 200 new members in the first 10 months of 2018, alone. Mandy grew up helping with the cattle, raking hay and farming. She says she and Kirk are looking forward to growing a herd of their own on family land in Murfreesboro. “I’m ready to slow down,” explains Mandy’s father Larry with a smile. “Selling these cows to Mandy and Kirk is a part of that plan.” “I knew of Farm Credit because my parents are members,” Mandy explains.
“I really didn’t consider using a bank because I was already sold on Farm Credit’s benefits. I had a home loan with Farm Credit several years ago, so it was an easy decision to come back and become a member again. I called Denise Sweat and she, Brenda and Sarah made it easy.” Denise Sweat is Vice President and Regional Branch Manager in Farm Credit’s Nashville office. Financial Services Specialists Brenda White and Sarah Myers coordinate much of the loan application and customer service process.
“I can’t believe how easy it was,” Mandy explains. “I dropped off the paperwork and they “I can’t believe easy days it was,” called me how a few Mandy explains. “I dropped off the later to and saythey we were paperwork called me a few set. days later It was to saya welot were quicker set. It was a lot quicker than I expected.” than I expected.”
Mandy and Kirk are part-time farmers. Mandy is a beautician in Murfreesboro and Kirk is a welder. They see raising cattle as a team effort and hope to move their family of seven to the country at some point, they say. “Dad’s here to call on as an advisor, when needed,” Mandy smiles. “That influenced our decision to buy his cows and get into the business, ourselves.” Story and photos by Jill Robertson.
“I told Mandy that Farm Credit was the way to go,” Larry continues. “Their rates are better, making their money cheaper.” “The patronage refund will be an extra bonus,” Mandy adds. “Local banks are putting everyone on balloon notes now. Farm Credit’s long-term, fixed rate is an advantage as we get started in farming.”
“Farm Credit prides itself on helping the next generation get started in farming,” says Vice President and Regional Branch Manager Denise Sweat.
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Farm Credit member James Bauer is a full-time farmer and raises turkeys in Scranton, AR.
THANK YOU, FARMERS. Thank you to the farmers who grow and raise the holiday food we enjoy. Farmers are the ones who make many of our holiday traditions possible.
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Find a branch office near you and call today for details.
myaglender.com
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M E M B E R SC E N E
A New Generation of Cattlemen An international cattle purchase and mobile app creation are just part of farming for this 22-year-old.
With only $100, but plenty of determination and ambition, 12-year-old Mason Faulkner purchased his first calf. 10 years later, Mason’s herd may look different than that first black calf he raised, but his passion to be a successful cattleman is still evident. Mason also knows that it takes more than passion to be successful. He’s banking on a unique breed, has his sights set on an ag-centered CPA career and has created a mobile app to allow himself, and fellow ranchers, to run their businesses more efficiently. Mason is a full-time accounting student at Harding University and will graduate in May 2019. He plans to become a Certified Public Accountant and work within agriculture, helping other farmers maximize profitability. “I like accounting because it’s the language of
“The best part of my job is doing what I can to help young people get started in farming,” said Farm Credit loan officer Hank DeSalvo (right). “I admire Mason’s ambition and ability to think outside the box. Creating a mobile app to make tracking cattle easier shows just how differently the next generation is approaching farming. That’s exciting.”
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business. You can see behind operations, how they work, understand the tax law and how to save money,” he said. He commutes between the family farm in Center Ridge and Searcy three times a week so that he can remain on the farm and care for his animals. He relies on his parents’ and professors’ support as he balances school and farm work. “It’s definitely unique balancing your time with academics and coming back to the farm, but my teachers understand that I’m young and I’m trying to start a business and run a cattle operation and they definitely support me,” Mason said. Mason raises registered Fleckvieh cattle, a dualpurpose breed known for their beef and dairy
He was intrigued by the breed’s uniqueness and traits that still captivate him today. His favorite features are their markings and color. Pigmentation varies greatly from animal to animal and he says the surprise of discovering the color and markings is what makes calving season exciting for him. His supporters came together most recently as Mason planned a trip to Canada to purchase additional cattle for his Fleckvieh herd. This meant traveling hundreds of miles, missing classes, and meeting a strict deadline for transporting the cattle across the US-Canadian border. Why travel to Canada for Fleckvieh cattle? The breed was originally imported to Canada and many of the original genetics still exist there. In Canada, the breed is larger, bigger boned and more genetically powered, he explained. Mason selected two bred heifers and two cow/calf pairs from 1,000 head of Fleckvieh in Canada. He’ll use them in an embryo transfer program as he grows his herd. Transportation across the border was one of the biggest challenges in purchasing Canadian cattle, he explained. The dilemma required special funding coordination with Farm Credit loan officer, Hank DeSalvo. “When I bought them, there was a specific time frame for crossing the border,” Mason explained. “We needed to speed up the loan process by transferring money electronically, and Hank and Farm Credit made it happen overnight.”
Vice President Hank DeSalvo works with Financial Services Specialists Donna Payne and Alison Baker in Western Arkansas’ Morrilton branch office. While he’s had Farm Credit loans with his parents in the past, this was Mason’s first loan in his own name. He says he enjoys working with Farm Credit because the staff values their customers.
M E M B E R SC E N E
production. The breed is not common in Arkansas, but sparked his interest at age 14 when he visited Dollars Diamond D Fleckvieh Cattle in Russellville, owned by Kent Dollar.
“In business, I believe you have to take risks and in order to take risks, you need people to help you,” Mason said. “Farm Credit has been awesome to help me and I see them as a resource I can count on as I grow my business.” Mason’s belief that technology is an important tool for farmers and ranchers led him to create a mobile app. His idea came after seeing farmers and ranchers with mounds of loose paperwork and lack of organization. Recruiting his uncle who develops computer software, the duo designed the app which allows producers to record information about their herd on a mobile device. Problem solved. “Every cow is recorded into the app along with its registration information and paperwork,” Mason said. “Then, when you have a client come out and ask about your cattle, you can pull it up right there in the field using a phone or tablet.” They’re currently fine-tuning the app and hope to have it on the market within the next year. At age 22, Mason has a great start as a cattleman. Farm Credit is proud to assist him, and others like him, as they work to become western Arkansas’ next generation of successful farmers. Story and photos by Lindsey Triplett Holtzclaw
Mason Faulkner’s breed of choice is Fleckvieh cattle. A dualpurpose breed developed for both dairy and beef production.
Photo Contest Winners
1st Place Adult - $300 Hanna Robbins • Ozark
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2nd Place Adult - $200
3rd Place Adult - $100
Doug Nordin • Pottsville
Kaylee Coker • West Fork
1st Place Youth - $300 Josie Wilkins • Lamar
2nd Place Youth - $200
3rd Place Youth - $100
Talley Caldwell • Dardanelle
Flossie Glinski • Damascus
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Operation Open Season High school students learn valuable skills building hunting blinds, landowners get a free hunting blind, and local wounded veterans enjoy hunting on private land.
Operation Open Season evolved from an idea a group of Northwest Arkansas builders had to help ensure there would continue to be skilled laborers for their industry. High School building programs needed support, materials and items to build. Builders supported the Black Hills High School Builda-Thon which is a contest to build the best handicapaccessible hunting blind. A success, newly-constructed blinds needed to be put to use. Together, the builders group created a plan to identify property owners who would be willing to open their land and host a veteran hunter one day a year in exchange for a free blind (valued at $1,500). Finding local, wounded veterans who wanted the opportunity to hunt on private land completed the circle, and Operation Open Season was established. The non-profit organization is run entirely by volunteers, with no administrative overhead. 100% of donations go
to support hunting-blind construction at high schools and fund free hunts for veterans and youth. The program now includes 60,000 acres of hunting land and 74 veterans enjoyed hunts in the past year. “This was a grassroots effort by building and construction industry folks,” explains John Rowland with Black Hills Corporation. John has been a key volunteer for the program since 2014. He coordinates donations, publicizes the program to area schools and FFA chapters, recruits wounded veteran participants and actively solicits property owner participation. The program is an easy sell, he says. It ticks all the boxes. It supports high school and FFA chapter building programs, land owners get a free hunting blind, wounded veterans get to enjoy hunting and, most importantly, he’s seen friendships grow between veterans and hunting property owners. While the program asks land owners to agree to a minimum
Would you like to participate? If you have hunting property and would like to open your land for a one-day-per-year hunt in exchange for a free hunting blind, contact John Rowland at 479-301-6669 or find details at operationopenseason.com.
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• All hunters are accompanied by a qualified hunting guide. • Participating automatically enrolls you in their Ultimate Sportsman Giveaway (a package designed to improve your land for hunting). • No obligation to participate beyond the initial agreed-upon date. • In Arkansas, hunts are by invitation only which eliviates all liability issues. (Consult the Arkansas Game and Fish Commission website for details.)
of one day of hunting per year, John says many host veteran hunters, and youth, more often. “We’ve learned that wounded veterans connect with hunting,” John explains. “The camaraderie of deer camp is similar to what they experienced in the military. They’ve told me they connect with things as simple as smelling gunpowder and wearing camouflage again. It’s familiar.” “Holding a weapon again and using shooting skills I learned in the military are range-therapy for me,” confirms Iraq War veteran and Operation Open Season participant Scott West. “I have military skills that I don’t use in civilian life. The chance to turkey or deer hunt taps into some of those skills,” Scott continues. The events of September 11, 2001 motivated Scott to enlist in the Army at the age of 17. He felt compelled to serve his country and served in the 5/7 Calvary unit as a 19 Delta Recon Scout. He served in Iraq, north of Baghdad, and was three days from completing his tour and returning to the states when the truck he was driving was hit by an IED. He turned the vehicle into the
IED to protect fellow passengers and sustained critical injuries. Scott became the fastest person evacuated from Iraq to Germany to Walter Reed Medical Center in Washington, D.C., a statistic that he attributes to saving his life. He spent the next 13 months recuperating in the hospital. He had 38 surgeries in the first 30 days and became a double-amputee at the age of 20. Scott was determined to walk again and jokes that the first time he tried on his prosthetic legs he ran for two miles, simply from the joy of being able to run again. “When I finally returned to my hometown of Branson, MO, I no longer had a support network or the brotherhood of the Army,” Scott continues. “It was difficult to adjust. I had a lot of trouble. But in 2015 I came to the realization that I wanted to give back to other wounded veterans.” Scott took a position with Sheep Dog Impact Assistance (headquartered in Rogers, AR) as an Outdoor Adventure Coordinator. He helps veterans connect with outdoor adventures, physical challenges and the camaraderie that veterans often seek. John and Scott met at an event and became friends. Scott was invited to try his hand at turkey hunting and returned the favor by helping John connect with wounded veterans he’d met through his work with Sheep Dog Impact Assistance. The two share a passion for hunting and for helping other wounded veterans enjoy hunting with Operation Open Season. Story by Jill Robertson. Photos by Lindsey Triplett Holtzclaw.
How Farm Credit is supporting Operation Open Season Farm Credit of Western Arkansas has made a $6,000 donation to sponsor hunting-blind building programs at Ozark, Clarksville, Harrison, Green Forest, Greenwood and Mountain Home High Schools. Each school sponsorship requires $1,200. Schools receive $800 for building materials and build a blind with an estimated value of $1,500. The remaining $400 is used to ensure veteran hunters have hunting gear and supplies, and are reimbursed for travel to hunts and special speaking engagements to increase awareness of the program. 100% of donations go directly to program costs.
KOHL
-laborations
Commentary, wisdom, and perspectives from globally renowned agricultural economist, Dr. David M. Kohl.
Spouse’s Role in Retirement Planning On many farms and ranches, long-term planning is given low priority, if any priority at all. Tending to the crops and livestock easily rank higher on the day’s to-do list. Thus, transition planning and even the mere subject of retirement gets put off. In fact, when asked about retirement, several producers objected to a plan saying they hope to farm until the end of their days. Not surprisingly, the same question posed to a producer’s spouse or life partner often meets raised eyebrows. Yet, the role of spouse and partner is crucial in the process of retirement planning.
SOCIAL SECURITY The first step in considering retirement is an assessment of the available financial resources for the golden years. One financial resource on which millions of people have come to count on is Social Security. Many producers find payments are less than expected. When minimizing reported income year after year to decrease taxes owed, the contribution to Social Security is also decreased. It should come as no surprise the payout is also minimized. Another consideration with Social Security is the amount the spouse is eligible to collect. In general, the spouse is eligible for up to one-half the payment of the partner. However, if the spouse worked off-farm, the collection amount from that work may be higher than one-half of the spouse’s payment. In that case the spouse receives the greater amount. For example, if a farmer received a $3,000 monthly payment, the spouse is eligible for $1,500 per month without off-farm work.
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There is also the question of when to start collecting payments – as early as 62 through 70 years of age. For each year of delay, the payment amount increases approximately eight percent. Of course, life expectancy and the status of the program are both important
factors to consider. FUNDING RETIREMENT Many times, farm businesses develop an estate plan that focuses on distribution of equity and assets at death. However, the more important question is, “How much income will be required to sustain you until that point?” In discussing this issue with the younger farm generation, I often say that mom and dad or grandpa and grandma represent a $1 million annuity. That is, the required revenue stream over the years will be a seven-figure amount or more. Businesses must consider where the needed income will be generated. Social Security is one source, but options such as off-farm investments, a retirement account, and the possible sale of the farm or assets need to be considered. In general, I recommend at least one-half of retirement funding be generated outside the farm. This provides diversification of income streams and more flexibility for the next generation. This also allows for more room in negotiations over th sale of the farm or farm assets. Since couples rarely die together, it is also important to include a surviving spouse in the family living budget for a longer period of time.
Another good strategy, especially for younger farm spouses is to place five to 10 percent of net income into a retirement account such as a simplified employee pension plan (SEP), 401(k), 403(b), or individual retirement account (IRA). Again, this diversifies the sources needed to fund retirement. There are some that insist any investment from the spouse or otherwise must go into the farm business or land. While this is historically a good investment, the old adage of don’t put all your eggs in one basket highlights the risk and potential losses of this strategy. Keep in mind, retirement accounts are often exempt from legal action or bankruptcy, which makes a good argument for some investment outside the business. INVESTING As I talk with younger couples in the process of long-term planning, they often ask, “How should we invest our money?” The simple rule is to save five to 10 percent of net income, and invest it according to the old strategy of subtracting your age from 100 or 120. This calculation provides the percentage of money that should be placed in one of two types of investments. For example, if you had $1,000 to invest at 45 years of age, 75 percent should be in growth types of investments like stocks, while the remaining 25 percent should be in more conservative funds like bonds (120-45=75). Statistically female partners tend to outlive their male partners by five to seven years. For this reason, female investors should tend more toward 120 than 100 in calculating long-term investments. RETIREMENT NEEDS Other than food and shelter, healthcare is another basic need, especially in the golden years. Many farmers and ranchers get caught between the responsibilities of raising their own families and caring for their elderly parents. Of course, both require significant time and money. Securing assisted care insurance between the ages of 45 and 55, or before chronic health issues emerge, often makes the coverage much more affordable. Unfortunately, once health issues arise, insurance can be difficult or perhaps impossible to obtain. With the cost of assisted care ranging between $60,000 and $90,000 annually, this is a topic for a critical discussion and must be included in any retirement plan. The planning process is also the time to consider costs for other needs or desires such as travel, exercise, or hobbies. This will most likely include sharing and setting of goals with your spouse, partner, and family.
NAVIGATOR I often hear the various factors involved in estate and retirement planning are overwhelming. While this certainly can be the case, a good facilitator can help navigate the discussions. A third party planner is helpful in raising the right questions, steering clear of emotional decisions, and formulating a plan that matches incomes with expenses. Don’t be surprised if the participation of an outside facilitator is required to get the topic on the table and open for discussion. It is interesting that a farm spouse’s role in long-term planning is sometimes undefined because they are not always directly involved in the daily farm business. Yet, even if intricately involved, the unique perspective of a farm spouse makes that individual invaluable to the planning process. Serving as an advisor, investor, referee, and in numerous other roles, a spouse or life partner can bring the rare and wonderful perspective of disconnected connection. In other words, any farm spouse, even if working off-the-farm, is intimately and undeniably connected with the farm business. Yet, their connection is also usually tied to the needs of the family, extended family, and future in a way that is not colored by the business. Retirement planning has several components and some may seem more relevant than others at any given point. However, as time moves ahead, each part of business and personal planning becomes important and even critical to business sustainability and profitability and family health and happiness. Thus, as your most important ally in life, reach out to your spouse and partner to tackle the plan for a long, abundant life together.
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2018 Farm Families of the Year Farm Credit of Western Arkansas members earn honors
Farm Credit proudly sponsors the Farm Family of the Year program through the Arkansas Farm Bureau organization. Congratulations to Western Arkansas members who have earned district and county honors for exceptional farm management and community leadership. Eight district winners will be honored at a luncheon in Little Rock on December 6 and the state Farm Family winner will be announced. That winner will go on to compete in the 2019 Sunbelt Ag Expo Southeastern Farmer of the Year competition next fall.
Western Arkansas members named District Winners: Southwest District Jimmy & Crystal Hewitt family of Fouke (Miller County) The Hewitt’s operation includes raising registered Simbrah and commercial cattle and hay production.
Western District Travis & Valerie Sims family of Center Ridge (Conway County) The Sims own and operate four broiler houses and raise cattle.
West Central District Damon & Jana Helton family of Lonsdale (Saline County) The Heltons raise grass-fed beef, forested hogs and pastured broilers. They sell the meat they raise at the Olde Crow General Store, which they own and operate in Lonsdale.
Western Arkansas members named County Winners: Clark
Nevada
Yell
Wyndal Minton of Gurdon
Todd & Kathy Brown of Rosston
Lewayne & Mary Hold of Danville
Crawford
Perry
Tim & Beth Owen of Alma
Jason & Christy Trantina of Bigelow
Lafayette Mike & Polly Lee of Lewisville
Polk Matt & Jessica Debnar of Mena
Logan Mark Snow of Subiaco
Pope
Madison
Shawn & Gayla Boxnick of London
Shannon & Melissa Fancher of Huntsville
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Sevier Walter John Marshall of Horatio
Farm Credit of Western Arkansas members Mark and Shay Morgan of Johnson County were named the 2016 Arkansas Farm Family of the Year.
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Arkansas 4-H and FFA Foundation Donations Western Arkansas promised to donate $10 for every eligible ballot received in the fall director election, and we delivered! (Left) Interim CEO Tom Cox and Executive Vice President/ Chief Operating Officer Brandon Haberer present a $2,300 check to Dr. Sarah Brown, Managing Director for the Arkansas 4-H Foundation. Dr. Brown is joined by Arkansas 4-H representatives. (Right) Pottsville High School FFA members accept a $2,300 check from Chief Financial Officer Lori Schumacher on behalf of the Arkansas FFA Foundation.
$3,000 Donation to New Youth Ag Program in Prescott Farm Credit made a $3,000 donation to the Organization for Youth Education in Agriculture at Prescott High School this fall. The new program has strong community support and the organization is raising funds for a new facility. The program targets youth who would otherwise not be exposed to agriculture. Farm Credit Vice President and Regional Branch Manager Jerry Nance, of Hope, and Farm Credit Director Steve Burke present a $3,000 check to volunteer program organizer Fred Harris, Nevada County Extension Agent Darren Neal, and students in the program.
$1,000 Donation for Glenwood Flagpole Loan officer Adam Baker in Glenwood presented the Glenwood Chamber of Commerce with a $1,000 donation toward a new community flagpole.
Community Involvement Dollars at work in Huntsville As a part of our on-going Community Involvement Dollars program, Jo Upson earned a $400 donation for the Huntsville Kiwanis group. Jo is an active volunteer and works regularly on projects supporting the Arkansas Children’s Hospital and various children’s causes in the community. Jo is a Financial Services Specialist in our Huntsville branch office.
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C O M M UN IT Y SC E N E
25-second clock donation for Lamar High School
$500 Donation to Pope County Habitat for Humanity
Regional Residential Appraiser Wilson Overbey in the Clarksville office, coordinated a $6,200 donation for a new 25-second clock for the Lamar High School football field. Wilson Overbey, Vice President and Loan Officer Anna Lester and AgriConsumer Specialist Sherry Boen also of the Clarksville branch office join Wilson in presenting Farm Credit’s donation to Lamar Athletic Director Brett Sampley and Lamar School Superintendent Jay Holland.
Bert Fleck accepts a $500 donation on behalf of Pope County Habitat for Humanity. Lisa Herren, project manager intern in the Central Office in Russellville, earned the donation through Western Arkansas’ Community Involvement Dollars program. Lisa coordinates Habitat for Humanity’s IT needs and serves as webmaster.
Member Credit Education Event Farm Credit hosted a free credit training event for Texarkana-area members in late October. Credit Analyst Jody Almand highlighted the loan process, what Farm Credit looks for in various financial statements and how Farm Credit may be able to help members be successful. Poultry, cattle, crop and timber producers were in attendance and Jody was assisted by a number of Western Arkansas loan officers and support staff. If you’re interested in attending a similar credit event in your area, let your local branch office know or email Clay.Lance@FarmCredit.com.
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Clark County Fair
Johnson County FFA Fundraiser
Farm Credit sponsored four belt buckles for the large animal market species at the Clark County Fair. Grace Rutherford accepted her buckle from Vice President Rachael Godwin for being selected grand champion in the market goat division.
Our Clarksville branch office donated a $500 gift certificate for a Johnson County FFA fundraising activity. Students sold tickets for the chance to win and chapters kept all ticket proceeds. Chapters could raise as much as they liked by selling tickets. $2,394 was raised by the three chapters participating. Vice President Anna Lester of Clarksville presented the winner of the drawing, Terry Hatcher, with the $500 award.
Farm Credit was proud to again provide statewide funds to support the Arkansas Agriculture Department’s School Garden Contest. 2018 Winners Best Overall Garden Sheridan Intermediate School (Sheridan) Best Nutrition Garden Bayari Elementary School (Springdale)
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School Garden Contest Winners!
Best Community Collaborative Garden Carolyn Lewis Elementary School (Conway) Loan Officer Josh Dunlap of Farm Credit’s Greenbrier branch (second from right) poses with the school garden coordinator and students from Carolyn Lewis Elementary School in Conway. The school was
Best Environmental Education Garden Perryville Elementary School (Perryville)
named the Best Community Collaborative Garden for 2018.
Best Start-up Garden Central Elementary School (Van Buren)
Scholarship winner Brady McPherson receives his award from Hunter Daniel of Farm Credit of Western Arkansas.
Hunter Daniel, Melissa Coles of Farm Credit Midsouth and Leslie Brown of AgHeritage Farm Credit Services present Trever Hanna with his scholarship award.
Arkansas HomeGrown by Heroes Scholarship Awards The Farm Credit associations of Arkansas proudly sponsored the Arkansas Agriculture Department’s HomeGrown by Heroes Scholarship program this fall. The program was open to current military personnel and the children of military veterans. Each received a $1,000 award to assist in the pursuit of degrees in ag-related fields. Wyatt Rongey, Ag Business student at the University of Arkansas Rachel Robertson, Ag Business and Communications and Business Law major at Arkansas Tech University - Ozark Brady McPherson, Ag Business student at Arkansas Tech University Trever Hanna, Ag Business student at the University of Arkansas
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W E ST E RN SC E N E
New Faces ALISON BAKER joined the Farm Credit team on September 10 as a Financial Services Specialist in Morrilton. Alison is from the St. Vincent community in Conway County, so she’s familiar with the area. She brings commercial banking experience to her role at Farm Credit and she and husband Brandon are expecting their first child in early December. The Huntsville branch welcomed new Credit Trainee/ Loan Officer TREY VILLINES in mid-October. He has experience as both a broiler service technician and broiler advisor. He is from the Huntsville area and raises cattle. He and wife Mandy are newly married and live outside of Huntsville.
ALI REED began her responsibilities as Regional Financial Services Specialist on September 24. Her home office is Nashville, but she travels between several southern branches. Ali is a Nashville native and was raised on a poultry farm. She and husband Justin are expecting their first child.
DONNA GEORGE of Bellville began her Farm Credit career on early November and is a Financial Services Specialist at the Danville branch office. Donna has 15 years of commercial banking experience and is a life-long Belleville resident. Her husband John works for Wayne Farms and they have three children – ages 30, 18 and 12.
Changing Places Two employees transitioned from Financial Services Specialists to Loan Document Specialists on October 1. NICOLE WARD in Danville will continue to work in the Danville office. MADISON COX TUTTLE from the Hope office will now work in the Texarkana branch. Loan Document Specialists are responsible for much of the behind-the-scenes loan processing work. As former Financial Services Specialists, Nicole and Madison are well-prepared for their new roles.
HUNTER DANIEL in the Central Office in Russellville assumed his new duties as Assistant Vice President – Risk Management on November 1. He’s served as a credit analyst since joining Farm Credit in June of 2017. Hunter is an Arkansas Tech University graduate and raises cattle.
Retirements Three employees with 93 years of combined Farm Credit experience have announced their retirements. We thank them for their committed service to Farm Credit and hope they know the degree to which they’ll be missed by both fellow employees and members.
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Financial Services Specialist DONNE JOHNSON of the Mena branch office retired at the end of November. Donne’s Farm Credit career spans almost 33 years and all of it was in our Mena office. Needless to say, her smiling face was known to at least two generations of borrowers in Polk County. Donne and her husband are making plans to move to NW Arkansas to live near children and grandchildren.
CECIL OURSBOURN, Vice President and Branch Manager at Greenbrier, is slated to retire on December 31. Cecil began his Farm Credit career in Texas in the late 1970s. He has 31 years of Farm Credit experience and worked for a handful of other associations before joining Western Arkansas in 2003.Cecil plans to sell agricultural real estate and spend considerable time fishing with his favorite seven-year-old grandson upon retirement.
Loan Document Specialist EULITA WALKER says she’s bringing her 29-year Farm Credit career to a close on February 28, 2019. Yell County members appreciated Eulita as a Financial Services Specialist in Danville for 19 years before she became one of our original Loan Document Specialists in 2008. Eulita and her husband plan to travel but she says she’s most looking forward to simply being home and spending more time with family.
Our Bentonville branch is relocating and should be open for business in the next few months. Look for us in the BOS Business Park, Building A, Ste. #16, 3600 SW Regional Airport Blvd. in Bentonville. Same great staff, just a new, larger location to better serve members.
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NEW Bentonville branch location!
2019 Scholarships Graduating high school seniors and current college students with at least one year of school remaining may apply for one of 20 - $1,000 scholarships to be awarded in the spring. Details and application forms can be found at myaglender.com after January 1, 2019. If questions, call Samantha Kilgore at 479-968-1434.
2019 Women in Ag Conference Time to network with fellow producers and learn more about all aspects of agriculture and marketing at the 2019 Women in Ag Conference March 12-13 at The Wyndham Riverfront Hotel in North Little Rock. Details at arwomeninag.org.
2019 Western Arkansas calendars now available! Stop by your local branch office and pick up a 2019 calendar featuring photos from our photo contest. Available while they last!
What’s new? Stay up-to-date on what’s happening across the association by finding us at “Farm Credit of Western Arkansas” on Facebook and @FarmCreditWear on Twitter and Instagram.
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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 • Bare land
• Recreational land • Timber tracts • Forestry products and processing
Merry Christmas and Happy Holidays! Holiday Hours: Monday, December 24 Tuesday, December 25 Tuesday, January 1
Closed Closed Closed
While the cut-off time for payments is 3:00 PM on regular business days, payments must be in by NOON on Monday, December 31 to be credited for 2018. If mailing your payment, please allow five business days for delivery. Normal business hours are 8:00 AM – 12:30 PM & 1:00 PM – 4:30 PM, Monday through Friday.
