The Rural Scene Summer 2020

Rural Scene

THE

YOUNG, BEGINNING FARMERS FINDING WAYS TO PUT DOWN ROOTS IN WESTERN ARKANSAS.

SUMME R 2020

Enriching rural life.TM

Rural Scene

THE

On the Cover Jennifer and Jesse Abbott say the rural lifestyle is all about family.

PUBLISHED BY

Farm Credit of Western Arkansas is

In This Issue

a customer-owned financial cooperative

5

COVID-19 Update

17

Lending in Challenging Times Practical advice from two of our credit experts

6

Director Scene 2020 Director Nominations

18

Community Scene Committed and connected to rural Arkansas

8

The Path to Becoming a Farmer Young, beginning farmers putting down roots in Arkansas

21

myACCESS 24/7 access to account information

providing financing and related services to farmers, ranchers, rural homeowners, agribusinesses and timber producers in 41 western Arkansas counties.

With a loan volume of $1.5 billion, Farm Credit of Western Arkansas is a member of the 103-year-old Farm Credit System, a nationwide network of borrower-owned lending institutions providing more than $217 billion in loans to rural America.

14

Cooperative Scene Members shared $10.3 M in Patronage Cash in February

22

Western Scene Employee happenings

Office Locations and Loan Officers Arkadelphia 2858 Walnut (870) 246–8061 Rachael Godwin, David Smith

Greenbrier 89C N Broadview St. (501) 679–5464 Josh Dunlap

Ozark 1808 Farm Credit Dr. (479) 667–3855 Tom White

Benton 15227 1-30 South (501) 860–6391 Kevin Barham

Harrison 129 W Industrial Park Rd. (870) 741–2020 Brad Matlock

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

Bentonville 3600 SW Regional Airport Blvd.

Suite 16 (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, Catherine Goodwin

Huntsville 14238 Hwy 412 (479) 738–6622 Trey Villines

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

Magnolia 1703 Pittman St. (870) 234–8611 Jonathan Shumate

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

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

Texarkana 2305 Trinity Blvd.

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

Clarksville 1007 Interstate Dr. (479) 754–2876 Anna Lester, Sherry Boen Danville 302 E 5th St. (479) 495–2711 Lora Briggs De Queen 800 E Magnolia Ave. (870) 584–3113 Jordan Icenhower

2

Fort Smith 12907 Hwy 71 South (479) 434–4040 Andrea Leding, James Crabtree Glenwood 131 Hwy 70 East (870) 356–2023 Adam Baker

Morrilton 1329 Hwy 9 (501) 354–2377 Hank DeSalvo Nashville 302 W Bishop (870) 845–2221 Denise Sweat

Tontitown 1091 W Henri De Tonti Blvd.

(479) 717–6740 Misty Eastep Waldron 502 Frankie Matthew Dr. (479) 637–2087 Rex Dollar

Letter from the CEO Plato coined the term, “Necessity is the mother of invention.”

Nothing is more true as we, like the rest of the country, are dealing with the COVID-19 crisis. This temporary new normal of social distancing has skyrocketed the use of e-commerce.

Retailers whose business models didn’t include e-commerce before the words COVID-19 entered our vocabulary are changing the way they do business seemingly overnight.

E-commerce is now everywhere, a point that hit home as I witnessed my small, local hometown grocery store move to online ordering and delivery – something I would never have expected before this health crisis.

Board of Directors Chair Kenny Brixey, Casa Vice Chair Bob Dixon, Havana Steve Burke, Washington Renny Chesshir, Alma Chuck Davis, Ashdown Pam Faulkner-Moore, Casa Dusty Hampton, Russellville Kim Hogan, Ozark Ron Hubbard, London Cody Jones, Mansfield Bill Linton, Dover

Farm Credit is no different. I’m proud to share that we’ve been working over the past few years to add to our technology team, developing three-year technology plans and strategies. In January, the Board of Directors approved technology expenditures to help propel our technology plans forward. We were already headed down a path to improve our loan delivery process but our plans were accelerated by necessities that arose from COVID-19. We are now testing DocuSign and before long will have the full capacity to start and close a loan remotely for those desiring that method.

Julie Lively, Fulton

Having to adapt to state and national directives to promote social distancing forced us to look at working differently. If there’s a positive note in all of this, it’s that we now know we have the capacity for staff to work remotely, as needed, without sacrificing service to our customers. I’m proud that our employees adapted to this unprecedented situation without a single hiccup.

About the Rural Scene

Brandon Haberer

Believe it or not, we actually plan and test for these types of events. We have a Business Continuity Plan that contains almost any scenario you can dream of, including a pandemic. Our preparation for this type of scenario, plus our increasing focus on technology improvements and a strong balance sheet, has your Farm Credit well positioned to continue business as usual…whatever usual is right now.

One of the most difficult things is that Directors and employees realize that COVID-19 is impacting our members personally. We are definitely concerned. Our employees are trying to keep tabs on members and we want to hear from you if you have special needs.

The last economic downturn in 2008 remains memorable and left Farm Credit with a proven playbook.

We’ve dusted off that playbook and have created a COVID-19 Special Loan Servicing Program that gives loan officers tools to help members who have been impacted financially. Members should call their loan officer for details.

Politics aside, the federal government took aggressive economic measures early in the COVID-19 crisis. Lowered rates and the enacted stimulus package may help members in the coming months.

While a global pandemic forcing the United States into a recession is a scenario nobody would have predicted, I remain optimistic that the western Arkansas agriculture economy will recover more quickly than with the last recession 12 years ago.

Sincerely,

Kenny Martin, De Queen Gene Pharr, Lincoln Mark Wilcox, Greenbrier President and CEO Brandon Haberer

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@myaglender.com Contributing Writer and Photographer Lindsey Holtzclaw Lindsey.Holtzclaw@myaglender.com myaglender.com Article quotes have been edited for content and appropriateness.

Follow us on social media!

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

Member of the Cooperative Communicators Association.

Brandon Haberer President and CEO

© 2020 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.

3

DIRE C TO R SC E N E

Letter from the Board Chair Greetings from the board.

As I write this, we’re entering our third week of the COVID-19 pandemic in Arkansas. Like you, we are figuring out how to function with limited contact and still take care of business.

Kenny Brixey

While this is new territory for us, we have a great leadership team and a Business Continuity Plan that we’ve been able to implement seamlessly with no interruption to our services.

Farm Credit falls under the definition of an essential business.

We’re charged with maintaining business so that farmers have access to the financing they need to produce important food and fiber. I can’t express my appreciation enough to each employee for their dedication and willingness to conform to the changes we’ve implemented to keep them, our members and our communities protected.

On a positive note, earlier this year board members had the chance to visit with select groups of employees across the association. These forums allowed us to ask questions and better understand their work and what they feel may need improving. A theme from these meetings emerged.

Employees truly care about their customers and find joy in

watching them achieve their dreams. Most of the things we discussed came back to their concern about how it would affect their ability to serve you. Board members found it encouraging to see that we’re all focused on the same thing and that we’re all doing our respective jobs to make it happen.

As a cooperative, member participation in the annual election process is key to our success. In light of COVID-19, the board is considering moving the Nominating Committee meeting, Annual Meeting and election to later in the year.

These decisions will be made in conjunction with Farm Credit Administration approval. Dates should be determined by the time you receive this magazine. Check our website, myaglender.com, for details and dates. We are weighing our options and may need to conduct these meetings by conference call or other electronic means, if warranted this year.

I encourage you to act now and contact a Nominating Committee member (listed on page 7) if you are interested in a position or have someone to nominate.

Stay safe and God bless each of you.

Kenny Brixey Chair, Board of Directors Farm Credit of Western Arkansas

The annual AgriBank Directors meeting in early March provided valuable information and training for Western Arkansas directors and senior management team members who were able to participate.

From left, sitting: Cody Jones, CFO Lori Schumacher, Julie Lively, Pam Faulkner-Moore and Mark Wilcox

4

From left, standing: Renny Chesshir, Gene Pharr, Ron Hubbard, Bob Dixon (vice chair), CEO Brandon Haberer, Kenny Brixey (chair), EVP Perry McCourt and Steve Burke

COVID-19 Update This information is current as of late April, 2020.

See myaglender.com for the latest updates.

We’re here for you.

As the COVID-19 crisis continues in western Arkansas, it is more important than ever to be able to communicate with our members.

Uncertainty is stressful. Know that Farm Credit cares about you and your family’s well-being.

What Farm Credit is doing.

We are closely monitoring the pandemic and making business decisions to protect the health of our employees, members and communities.

We closed office lobbies in mid-March at the guidance of state officials. While temporary, we do not yet know how long it will be necessary. Our committed employees remain focused on serving members’ financial needs and have transitioned easily to conducting business by phone and electronically.

Why we remain open.

The Office of Homeland Security has named financial institutions as essential businesses during this crisis. Rural Arkansans need financial services to produce the food and fiber we rely on.

May I talk to someone?

Yes, certainly. Employees are available during our normal business hours, 8:00 AM – 12:30 PM and 1:00 PM – 4:30 PM Monday through Friday. Find office phone numbers on page 2.

What are my options for accessing my account information?

• Call your local branch for assistance.

• Enroll in myACCESS, our online banking tool. Details at myaglender.com. Gain 24/7 access to your account information and make online payments.

What’s the best way to make a loan payment?

• Mail your payment (address is on your loan statement – allow five days for delivery).

• Pay online using myACCESS. Details at myaglender.com.

To enroll in myACCESS you need: • customer number • social security number • loan number and balance (within 10%)

What if I’ve been impacted by COVID-19?

These are unprecedented times and we know this health crisis may impact customers physically, emotionally and/or financially. Know that we truly care about you, your family and your needs.

• Your loan officer can share details of our COVID-19 Special Loan Servicing Program and guide you through options if your financial situation has changed due to the crisis.

• Communication is important. Please call your local branch staff and begin the conversation if you or your operation has been impacted.

Is Farm Credit an SBA Paycheck Protection Program (PPP) Lender?

Yes, as an approved PPP lender we’ve worked to make these loans on behalf of current customers.

3/27/20 - Congress enacted the Paycheck Protection Program as a part of the $2-trillion-dollar CARES Act as an economic rescue package in response to the COVID-19 crisis.

3/28/20 - Farm Credit was named as a lender for the program and we began working daily to gain access to the Small Business Administration’s PPP loan portal.

4/14/20 - We were granted entry to the SBA site and immediately began submitting customer PPP loan requests. (At this time we are only able to assist current members.)

4/16/20 - The initial $349 billion appropriated for PPP were exhausted and the availability of additional funds in the future is uncertain Check myaglender.com for up-to-date information.

• Schedule an automatic, reoccurring payment by contacting your branch office.

• Drop payment in the drop box at your local branch office. Drop payment through the mail slot, lobbies are closed.

5

DIRE C TO R SC E N E

2020 Director Nominations Nominate a qualified member for a director position.

As a financial cooperative, Farm Credit is owned by the members it serves. Members have the responsibility of nominating and electing fellow members to serve as Directors. Directors meet approximately 10 times a year and work closely with management to guide association strategic direction and general practices. Directors are compensated for their time and travel.

The Nominating Committee is accepting nominations for Director positions that are up for re-election this year.

Directors commit to a four-year term that begins once election results are final.

You’re invited to contact a current Nominating Committee member if you would like to: • Be considered as a Director nominee • Nominate a fellow stockholder for a Director position • Nominate a fellow stockholder for the 2021 Nominating Committee Nominees must meet the following general requirements, as well as all other Farm Credit conditions: 1. Be a voting stockholder, at least 18 years of age, and a bona fide farmer (person owning agricultural land or engaged in the production of agricultural products, including aquatic products under control conditions) in the association’s 41-county western Arkansas territory.

2. Must have an active loan balance and acceptable credit classification rating.

The Farm Credit of Western Arkansas Board is comprised of 15 members as dictated by Association bylaws.

12—Directors elected through the member election process 1—Inside-appointed director (Association member selected by the Board of Directors) 2—Outside-appointed directors (non-members selected by the Board of Directors) Directors serve a four-year term. Association bylaws require that at least 60% of directors be elected by stockholders; FCS regulations require a minimum of two non-stockholder directors.

6

● Bentonville Siloam Springs ●

AREA 2

AREA 4

AREA 6

Boone

Carroll

Benton

● Tonitown

Madison

● Huntsville

Washington

Newton

● Prairie Grove

Nominations are being accepted. Please contact a Nominating Committee member directly to offer your suggestion(s).

Franklin

Crawford

Johnson

● Clarksville

Ronnie T. Horn • Washington Will Lane • Benton

(479) 841–2616 (918) 253–7344

AREA 2

Justin “Taylor” Gattis • Franklin James A. Ford • Franklin

(479) 438–9009 (479) 667–4772

AREA 3

Allen Johnson • Logan Casey T. Cotton • Logan

(479) 438–0847 (479) 518–1362

Ronnie D. Hall, Sr. • Faulkner James Mann • Perry

(501) 733–6189 (501) 391–2049

AREA 4

Conway

Russellville

Logan

AREA 1

Van Buren

Pope

● Fort Smith

2020 Nominating Committee Members

Searcy

● Ozark

Sebastian

Baxter

Marion

● Harrison

● Paris

Faulkner

● Greenbrier

● Morrilton Yell

DIRE C TO R SC E N E

2020 Director Positions Open for Election

● Danville

● Waldron

Perry

Scott

Saline Polk

Garland

Montgomery

● Mena

Pike

● De Queen Sevier

Hot Spring

● Glenwood

Howard

● Benton

Grant

● Arkadelphia

● Nashville

Clark

Dallas

Hempstead

AREA 5

AREA 6

Randy W. Peck • Hempstead Danielle Kitchens • Howard

(870) 703–5998 (870) 904–0843

Hunter Lipsey • Sevier Monte K. Davis • Sevier

(870) 279–1413 (870) 784–2780

Nevada

Little River

● Hope

Ouachita

Calhoun

● Texarkana Columbia

Miller

● Magnolia Lafayette

Union

7

M E M B E R SC E N E

THE PATH TO

Becoming a Farmer Two couples, two very different success stories.

Young people often ask Farm Credit for the best way to start farming. Unfortunately, there’s no easy answer.

The bad news is that land (when you can find it), livestock and equipment are expensive.

The good news is that with passion, a plan, hard work, a good mentor and a bit of luck, there are still ways to make it happen in western Arkansas.

For some, it's almost in their DNA. From childhood, Chrisie Smith had a long-standing goal – a career on the family ranch. She attended Arkansas Tech University but declined the opportunity to play basketball. Instead, while earning her agribusiness degree, she chose to return home every weekend to help her parents work cattle.

Schwerin Farms is 1,000 acres of rolling pastures in Gentry, AR. Today, it’s home to cattle, horses, a few dogs and three generations of Chrisie’s family.

The Smith family, young farmers in Gentry, AR. Photographer: Luke Davis, Main Street Studios

Chrisie and her husband, Kaleb, met as youth and bonded over their shared passion for showing cattle.

Their friendship grew and they married in 2010.

Becoming farmers A pivotal event paved the way for Chrisie’s goal of working on the family ranch full-time. The house and acreage adjoining her family’s ranch became available to purchase.

“It was a God thing,” Chrisie said, smiling and remembering the day her dream started becoming reality.

Sitting in their now renovated farmhouse she added, “Coming back here has always been what I wanted to do. When this house and property became available, it all came together.”

Today, Chrisie, Kaleb and their boys, Paden (age 6) and Paxton (age 4), live on the ranch near her parents, Dennis and Marlene Schwerin. They work on the beef cattle ranch full-time, managing 250 cows with calves and 800 stocker cattle.

8

While the majority of the cattle are owned by Schwerin Farms, Kaleb and Chrisie have a satellite project of stockers and cow/calf pairs that functions within the larger operation.

Kaleb enjoys the challenge of managing their own cattle within the herd.

“It gives us more skin in the game and allows us to play the markets, see the feed conversions and understand the actual cost to run a farm,” he said.

While working with family can present challenges for some, Kaleb and Chrisie agree that it comes naturally for them. Chrisie says mutual respect is key.

“During the young farmer conference, Dr. Kohl mentioned that if you don’t move up into management within the first six years, you’re likely to leave the family farm,” she said, referencing the Farm Credit statewide Future Legacy Young, Beginning Farmer Conference she and Kaleb attended in February.

“But for me, it’s felt like Dad and I have talked through and made decisions together since day one,” she added.

Kaleb says he’s thankful for Dennis’ willingness to let the couple try new ideas.

“I thought we could save money and do a better job doing our own fertilizing and weed spraying. He was immediately on board. We got a new sprayer and he let me run with it,” Kaleb said. “If we think it’s a good investment, he’s definitely willing to let us try it.”

The family has found a way to recognize each other’s strengths.

“When we work cattle, we can do it without saying two words to one another,” Chrisie said. “We all know our positions. It’s routine now and nobody wants to slow the other down.”

An important mentor

M E M B E R SC E N E

“We added our own cattle to the herd because my dad believes if we’re invested, we’ll learn more than if we’re just doing the day-to-day maintenance,” Chrisie said.

Working alongside Dennis has helped the Smiths grow as cattlemen.

“We are fortunate to have Dennis guiding us. He’s a huge role model, and we like being around him,” Kaleb said. “When he talks, we stop and we listen.

It’s not like we’re working with family, it’s more like we’re working with a mentor.”

Paying their dues Kaleb brings his own unique talents to the ranch.

For the first five years of their marriage, he owned his own shop and worked full-time as an ATV/ motorcycle mechanic.

“The shop paid our living expenses at first,” Kaleb explained. “We had to have an outside gig to get started. Once we had enough equity and cattle, it was easier to take on the ranch full-time.”

Today, Kaleb still helps neighbors and friends by taking on a few projects a week. His mechanical abilities also come in handy for making repairs on their own equipment.

9

M E M B E R SC E N E

“My business philosophy has always been to focus on farmer needs,” he said. “They use their four-wheelers and side-by-sides every day to check cattle, go to the chicken houses, etc., so I do repairs quickly so they can have them back.”

A true partnership The couple brings separate strengths to the ranch and embrace their differences.

“Kaleb is super ambitious while I’m more cautious,” Chrisie said. “We balance each other out.”

While their personalities mean they approach things differently, they share a passion for raising cattle and a common goal of producing a superior herd.

They both still frequent the show ring as open exhibitors and admit they’re excited for their sons to, hopefully, follow in mom and dad’s footsteps.

“In 2021, Paden will compete in his first National Junior Brangus Show, so the calves in the barn are legitimately his calves,” Chrisie said. “Building quality genetics so our kids can be successful in the show ring is a big goal of our operation.”

Networking on the show circuit has been a successful marketing tool for the farm.

“Our Brangus bulls have generations of genetics behind them,” Kaleb said. “It’s not a fluke that we have a good bull. There’s a lot that goes into breeding decisions.”

Their sons love the rural lifestyle and are showing signs that they will most likely enjoy showing cattle, as well.

Paxton is not yet in school. He spends his days on the farm with his parents and grandparents. Chrisie affectionately refers to it as preschool because he is learning on the ranch. Older brother Paden is in first grade.

Paxton helps feed his show cattle, loves riding in the tractors and spends a good portion of his time farming the carpet of the playroom with his 1/64-size farm equipment. Paden loves spending his summers tagging along with his dad as he works on mechanical projects and spending time in the hay field.

Off-farm business interests In addition to their on-farm responsibilities, the Smiths are also part-owners of Cattlemen’s Feed, LLC in Colcord, OK. Seven area stocker producers opened the feed store in 2013 as a cost-effective way to feed their cattle. Today, the store has six owners, five employees and produces 1,000 tons of feed a month for nearly 800 customers.

Chrisie says that her involvement with the feed store has made her appreciate earning a degree in agribusiness.

“People would ask why I was going to college if I just wanted to work on the ranch. My parents are college educated so, in my mind, if I wanted their job I needed to be at least as qualified as they are,” she explained.

“My advice to young people who want to return to the farm would be to get your education,” she added.

“Some people will say it’s for a fallback plan, but in my opinion, if you’re going to run it like a business, then you need to be business certified. You might think your classes don’t apply, but I never dreamed we would own a feed store.”

Challenges Although the Smiths are living their dream, their operation still comes with its share of challenges.

Paxton playing with his farm toys.

“I think our biggest struggle working as a family is shutting off,” Chrisie said. “It can be hard separating from the work because work is never done. We have to make the conscious decision to take a day off and do something fun with the boys.’”

The Smiths with Vice President & branch manager Savannah Dickinson.

Farm Credit’s role Becoming a Farm Credit member was an additional way Chrisie followed in her parents’ footsteps. Her parents are long-time members and even helped her get a youth loan for a 4-H livestock project.

“I’m thankful for that experience,” Chrisie said. “It helped me establish those relationships and understand how financing works.”

Siloam Springs Vice President and branch manager Savannah Dickinson has watched Chrisie grow with her parents’ operation.

“I’ve known Chrisie for a long time. I remember when she first came in with her dad. It’s been a joy to see her role on the farm evolve and to work with her and Kaleb as they’ve grown their own operation,” Savannah said.

Chrisie said having a lender who is familiar with the area and their operation is beneficial.

“It’s great to be able to call or text Savannah for answers,” Chrisie said. “I’ve never even considered financing with a bank. The relationship we’ve established with Farm Credit is a valuable asset.”

For others, it’s a conscious choice and change of lifestyle.

Neither Jesse nor Jennifer Abbott of Malvern had a farming background. Their dream of farming came from a desire to raise their family in the country.

Short-term sacrifice for long-term gain The young family set their sights on buying a farm while living abroad. Jesse’s job took them overseas for three years. While they value the experience, their time out of the country was a sacrifice for the couple who had three children at the time. They were away from extended family and there were definite trade-offs. Their time away solidified their

M E M B E R SC E N E

Another challenge is one that many farm families can relate to – discussing succession planning. “It’s hard,” Chrisie said. “Dad is still active on the farm and those conversations do not come easy, but planning for the future is a part of any successful business.”

desire to move back to western Arkansas and buy a farm. They used their time overseas as an opportunity to save toward a farm, and their future.

“We were missing the hills, green grass and fields and just the look of home,” explained Jesse who grew up in the Crystal Springs and Royal area.

“Having our own land and a place where the kids could be outside and play like kids became our dream,” added Jennifer who was raised in Cabot.

And that little bit of luck Jesse has an engineering degree from Arkansas Tech University and his job in the petroleum engineering field allows the couple to live anywhere. Their dream came to fruition when Jesse learned his great-uncle’s 86-acre farm was for sale in Hot Spring County. The farm’s location is also convenient for Jennifer who is a registered nurse at CHI St. Vincent’s in Hot Springs.

While it was family land, Jesse says he didn’t want to jump into buying it for that reason alone. They began looking a year before they moved back to the U.S. and considered several options. Ultimately, Jennifer says it was turning down the driveway and seeing the golden yellow fall foliage of their large, stately oak tree that sealed the deal for her. At that moment, it felt like home, they agreed.

The farm features a home, pastureland, a pristine creek and significant Ouachita River frontage. Children Luke (age 12), Savannah (age 9), Sadie (age 4) and J.J. (age 20 months) are quick to lead the way across the field to their favorite beach and fishing hole.

11

M E M B E R SC E N E

The Abbott family with Vice President & branch manager Rachael Godwin.

Jesse and Jennifer spent a year remodeling the farmhouse before moving in.

They did much of the work themselves and with the help of Jesse’s father who, interestingly, did the original stonework on the house for Jesse’s great-uncle.

The Abbott family made their permanent move to the farm in February and the Abbotts say it has been a game-changer for the family of six.

Sadie enjoying springtime on the farm.

“The kids are loving it,” shared Jennifer. “This is the lifestyle we wanted for our family. It’s a big deal to get our kids away from their electronics and give them a place to be outside and explore,” Jennifer continued.

“Plus, our families are close,” added Jesse. “Grandparents and extended family are nearby and that’s something we value.”

According to Jennifer, the children quickly adapted to their new lifestyle, choosing to be a part of feeding the cows and goats and farm chores.

“When they said we were moving to a farm I imagined it’d be really fun and I immediately thought about having cows,” detailed daughter Savannah.

“That’s Lucille,” Savannah smiled and pointed to one of her herd favorites, affirming that she is, in fact, enjoying all the farm offers.

12

Abbott kids tossing rocks in the creek that runs along the family's property.

Son Luke grins from behind the steering wheel of an all-terrain vehicle in the driveway. He’s eager to finish

#810 is the friendliest of the herd, say the Abbott girls.

the interview so he can speed across the field and join his uncle and grandparents at his favorite fishing hole on the river. Like all good fisherman, Luke is allusive about its exact location on the property.

Paying their dues In addition to remodeling the home themselves, they are learning how to raise cattle.

The Abbotts have an 85-head cow/calf operation of primarily Herefords and cross-bred cattle. Three goats, two dogs and a cat round out the animals requiring regular meals. In addition to pasture for the cattle, the farm includes hay fields.

“Right now we’re trying to learn all we can,” Jennifer shared.

They both maintain full-time off-farm jobs. Coupled with raising four small children, there’s little freetime in their current schedules. The flip side is that full-time off-farm income supports the family while their cattle operation is growing.

Jesse’s comment points to the couple’s resourceful spirit. They actively look for ways to learn. They found, applied online for, and attended Farm Credit’s recent Future Legacy Young, Beginning Farmer Conference.

An important mentor “I have a friend of my father’s I call with questions about the cattle,” Jesse added. “He’s been a great resource on this learning curve.”

Future plans Walking along the edge of the river and looking back across a flat, wide field, Jennifer shares her future dream for their property.

“This is the perfect spot for a wedding and event venue one day,” Jennifer said. “I think it’d be a wonderful way to share this with people.”

While the couple says they are not in any hurry to add to their current business plan, the resourceful couple has the idea in the back of their minds for when the time is right.

Farm Credit’s role “At first we were working with a local bank,” Jesse said. “We didn’t know who Farm Credit was. We needed a loan and just went to the bank. The bank was going to separate the house and land into two loans and that didn’t sit well with us.”

“Our realtor suggested we talk to Farm Credit,” he explained.

“Rachael was the only person who understood our situation and offered a solution,” shared Jesse in reference to Vice President and branch manager Rachael Godwin of the Arkadelphia branch office. “Farm Credit offered us flexibility and a competitive rate.”

“I had a lot of questions and soon realized she was a good resource,” continued Jennifer. “She made the entire process easier.”

It’s encouraging to see there’s more than one path to becoming a farmer. It’s even more exciting to see young people embracing their dreams and putting down roots on western Arkansas farms.

Story and photos by Jill Robertson and Lindsey Holtzclaw.

2020 Future Legacy Young, Beginning Farmer Conference 72 young, beginning farmers from across the state enjoyed two days of interactive learning hosted by the Farm Credit Associations of Arkansas in late February. Held every two years, the next conference will be February of 2022.

M E M B E R SC E N E

“I bought used equipment and now find myself becoming an expert at fixing used equipment,” Jesse chuckled.

C O O P E RAT IVE SC E N E

7 Cooperative Principles Voluntary Membership Democratic Member Control Members’ Economic Participation Autonomy and Independence

$10.3 MILLION Reasons

Education, Training, and Information Cooperation Among Cooperatives Concern for Community

Members’ Economic Participation Members contribute equally to, and democratically control, the capital of the cooperative. This benefits members in proportion to the business they conduct with the cooperative rather than on the capital invested.

to do business with us.

6,358 Farm Credit of Western Arkansas members shared a record $10.3 MILLION in Patronage Cash this spring. Members share in the profits when our association has a strong capital position and earnings. It’s the cooperative way of doing business.

Farm Credit of Western Arkansas has a proud history of Patronage Cash, with more than $129 MILLION back in members’ hands since 1997. That’s 23-consecutive years.

We hosted Patronage Open House events across the association to celebrate this valuable member benefit. It’s our favorite time of year – there’s nothing better than handing our members their share of the profits!

PARIS Donna Griffin in Paris (center) presents a Patronage check to members Timothy and Betty Maffet.

HUNTSVILLE Patronage Open House

14

WALDRON Patronage Open House

C O O P E RAT IVE SC E N E

OZARK Patronage Open House

We asked members across the association what they planned to do with this year's Patronage Cash...

CLARKSVILLE Patronage Open House

R E F E R R AL R EWAR D S PR OG RA M

Thank you for spreading the word about Farm Credit!

Our members are the best advertising tool we have.

Potential new members are quick to trust a friend or family member who shares their own, personal Farm Credit story. Personal referrals are much more effective than advertising.

Do you know someone who might benefit from Farm Credit's advantages?

• Long-term, fixed interest rates & flexible terms.

• Financing homes on any size acreage in the country (loans stay with Farm Credit).

• Special discounts for military veterans, young/beginning farmers and even small producers selling direct to consumers.

Refer as many people as you like... you’ll be helping your Farm Credit grow!

• Patronage Cash. Members share in the profits when the association has a good year.

• Local service from folks you can trust.

• Employees who understand agriculture and are involved in your local community.

How It Works

1. Encourage a friend to talk to Farm Credit about their financing needs.

It's simple.

2. When they close a loan with us, we ask who referred them.

3. We call and invite you to drop by and choose a thank you gift of your choice.

16

Soft-sided Cooler

Arkansas Shaped Cutting Board

Tervis Tumbler

Lending in Challenging Times Practical advice from two of our credit experts The extent of COVID-19’s impact on the western Arkansas economy is still playing out. While the uncertainty may be unnerving, economic ups and downs are historically a part of our market system and Farm Credit is prepared.

To understand Farm Credit’s strength in challenging times, it’s important to understand our philosophy on lending.

“Farm Credit is a cash flow lender, not a collateral lender,” explains Senior Credit Analyst, Jody Almand.

“We like for borrowers to have two avenues of repayment built into their borrowing plan. Cash flow in their operation to make payments and either collateral or equity to fall back on should there be an unforeseen issue with cash flow.”

“At times, borrowers question the need for both. Our job is to explain to the borrower how this sensible approach helps protect their operation. The economy has proved to be cyclical over time and our goal is to help both members and our association weather difficult times. Historically, we know unexpected things can and will happen to the ag economy. Positioning your operation to be prepared is a good thing,” Jody continues.

Farming is typically a long-term venture and farmers may be tested by unpredictable weather, natural disasters, fluctuations in demand for their product and even the unparalleled challenge of a world pandemic.

“It’s imperative for farmers to know their break-even price.

Know your true cost of production including all inputs.

That’s information only you have and it’s the only way you can make good decisions to help protect your bottom line,” says Regional Vice President Jonathan Shumate.

The best case scenario would be for an economic downturn to hit producers after several strong production years when farmers have good capital positions. Unfortunately, that’s not the case for all western Arkansas farmers. Flooding, low commodity prices, fluctuating cattle prices and other production stresses have left many farmers with already lean capital positions this year.

How to protect your operation in an economic downturn: • Review your balance sheet often • Know your break-even point • Know your true costs • Don’t overspend (farm and live frugally) • Watch sales prices • Utilize price protection (production agriculture) • Protect working capital and equity so it’s available, if needed Jonathan says he’s seeing farmers in production agriculture finding ways to focus on producing good yields in the most cost-effective ways possible this year.

“This is definitely a year to farm lean,” Jonathan reiterates.

“There can also be value in talking frankly with your vendors.

For instance, you may want to ask your chemical supplier how to do more with less this year,” he adds.

Farm Credit’s role The good news is that our lending standards mean our members are normally positioned fairly well when faced with economic challenges.

“Our lending strategy equips members with options, which I’ve seen make the difference for members in difficult times,” Jonathan adds.

With a 103-year tradition of supporting rural America through all economic cycles, Farm Credit is no stranger to guiding members through challenges. Farm Credit is committed to rural western Arkansas and agriculture.

We’re here for you.

“The best part of doing business with Farm Credit is that you know us and you know who’s making your loan decisions,”

explains Regional Vice President Jonathan Shumate.

“I can’t stress enough how important communication with your loan officer is. We need to hear from you to know how you’re impacted and to begin helping you make a plan,” Jody explains.

“The best part of doing business with Farm Credit is that you know us and you know who’s making your loan decisions. We value our relationships with members, and don’t take the trust our members have in us lightly,” concludes Jonathan.

JODY ALMAND Senior Credit Analyst

JONATHAN SHUMATE Regional Vice President

Jody earned a business degree from Henderson State University and began his Farm Credit career in 2006. He served Hempstead and Nevada Counties as a loan officer before choosing to become a credit analyst in 2011 and was named Senior Credit Analyst in 2018.

Jonathan oversees credit and operations for four southwest Arkansas branch offices.

He began his Farm Credit career as Vice President and branch manager of the Texarkana office in 2015 and was named Regional Vice President in 2019. He earned an agriculture business degree from Southern Arkansas University and has 20 years of experience in the agriculture sector.

17

C O M M UN IT Y SC E N E

Huntsville Kiwanis Huntsville Financial Services Specialist, Jo Upson, presented a $500 donation to Huntsville Kiwanis as part of our Community Involvement Program. Jo volunteers with the organization which empowers members to pursue creative ways to serve the needs of children in Madison County.

Jo Upson also volunteered with the Huntsville Kiwanis to make blankets for children at Arkansas Children's Northwest Hospital.

Arkansas Women in Ag Lindsey Holtzclaw’s volunteer leadership as 2nd Vice President of the Arkansas Women in Ag board qualified the organization for a $500 donation as a part of our Community Involvement Program.

Pope County 4-H Donation Human Resources Coordinator Carol Parker is an active volunteer with the Pope County 4-H board, which qualified the organization for a $500 donation as part of our Community Involvement Program. Carol recently presented the donation to Pope County 4-H Extension Director, Kaitlyn Wilson.

YCLC Graduation

18

In December, AVP Risk Management Hunter Daniel and Arkadelphia VP Rachael Godwin graduated from the Arkansas Cattlemen’s Association’s Young Cattlemen’s Leadership Class. YCLC gives future leaders hands-on experience throughout the year with sessions focused on policy, commerce, commodities, communications and other segments of the beef industry.

We celebrated our new location in Bentonville with an Open House in December.

C O M M UN IT Y SC E N E

Bentonville Open House

Harrison Calf Raffle Since its start in 2001, our Harrison branch's calf raffle fundraiser has raised over $500,000 for local FFA chapters. This year alone, the chapters who participated raised $49,242!

All chapters who participate keep 100% of the money they raise and as an additional perk, the top three chapters who raise the most money are treated to a pizza party to celebrate. This year, the top sellers were Jasper FFA and Mountain Home FFA.

Alex Bowman Memorial Scholarship Russellville VP Jim Taylor presented a $500 donation to Arkansas Tech University Ag Ambassadors who are raising funds to endow a permanent scholarship in memory of Alex Bowman.

Alex was an alumni of the Arkansas Tech Department of Agriculture and a former Ag Ambassador. Farm Credit enjoyed working with Alex when he served as an Ag Ambassador and we’re proud to help honor his positive impact on the ATU ag department.

CDE Field Day In March, employees helped cook for over 1,400 Arkansas FFA members at Career Development Events Field Day in Logan County.

19

C O M M UN IT Y SC E N E

River Valley Beef Cattle Conference In February, we sponsored and cooked steaks for the River Valley Beef Cattle Conference in Ozark. We're proud to support this event which helps producers learn more about forage management, value-added programs and the cattle market.

Operation Open Season This hunting blind built by Huntsville Agriculture Education and FFA will be used by some very special individuals. U.S. Army veteran, Brian Jaynes, will use it on his Madison County property as part of a program through Operation Open Season.

Operation Open Season is a nonprofit organization that partners with landowners to provide hunting opportunities for wounded veterans.

Brian said, “I was having a hard time several years back with TBIs and depression. A buddy hooked me up with a hunting trip and that was what saved my life. I vowed to help other veterans now that I’m a land owner."

Farm Credit Council Annual Meeting CEOs and Directors from Farm Credit associations across Arkansas traveled to Washington, D.C. in February for the Farm Credit Council Annual Meeting. From political analyses to trade impacts, Farm Credit leaders left the meeting with a sense of direction for agriculture in 2020.

While on The Hill, the Arkansas Farm Credit delegation met with Arkansas legislators to discuss issues facing rural Arkansas and Farm Credit members. Thank you to our congressional members for listening and taking time to discuss Arkansas agriculture.

It’s now even easier to do business with us!

At your convenience, from your computer or phone.

• Access account information, billing statements, and more.

• Access online banking to make payments.

• Securely exchange loan documents, tax returns, etc., (electronically) with your local branch office.

• Set-up personal account alerts to notify you via email or text regarding…

• • • • •

Maturity dates Payment dates Principal balance Transactions on account And more!

FOR MORE INFORMATION: Call: 877-968-6788 Monday - Friday 8 a.m. - 4:30 p.m.

1

Go to www.myaglender.com 2

Click on the button and follow the instructions.

Initial enrollment must be from a Windows device, but subsequent use can be from a cell phone.

W E ST E RN SC E N E

New Faces

MEGHAN GINNETT joined the Farm Credit team in early January as a Financial Services Specialist in Glenwood. She is a native of the Glenwood area and attended Centerpoint High School. You’ll find her playing with children Finn (age 5) and Shep (age 3) in her free time.

TASHA STANDRIDGE joined our team as a Financial Services Specialist in the Russellville branch office in early March. She formerly worked in medical data transcription and has lived in the Dover area for the past 10 years. She and husband Levi have a son Lane (age 14) and daughter Paisley (age 10).

Her hobbies include hiking and golf.

Former summer intern BRAYDEN BURNETT has rejoined Farm Credit as a part-time Field Services Intern serving the northwest Arkansas branch offices. Brayden is a senior at the University of Arkansas and will earn his agriculture business degree in May. Brayden is from Winslow where he owns land adjoining the family farm. He works on the family farm and you’ll find him caring for his own 30-head of cattle when he’s not studying.

JORDAN BURNEY began her Farm Credit career in mid-January as a Regional Financial Services Specialist in the Nashville branch office. She earned an ag business degree from Oklahoma State University and has four years of commercial banking experience. She was raised on a cattle farm and in her free time you’ll find her hunting, fishing, gardening and canning.

JARED QUALLS began his work as an IT Developer in a contract position in 2019. He transitioned to a permanent full-time position in the Technology Department in February, 2020. He earned an information technology degree from Arkansas Tech University in December. Jared is a veteran and served two combat deployments in his eight years as an Army combat engineer. Originally from Clarksville, Jared and wife Beverly live in Russellville with their children Brayden (age 9), Josh (age 8), Jessica (age 3) and Bailey (age 10 months). You’ll find Jared making time for hunting, fishing and golf in his free time.

We welcomed Assistant Vice President and Loan Officer CATHERINE GOODWIN in Prairie Grove on March 16. She has seven years of experience with Alabama Farm Credit, the past four as a loan officer.

She was raised on a small cattle/lamb farm in Rogers and is happy to return to NWA. She is currently living in Bella Vista with her son Hudson (age 4) and enjoys cooking and the outdoors.

22

KRISTI WILLIAMS was named Loan Accountant in March. She began her Farm Credit career as a Regional Financial Services Specialist in 2019 and works from the Clarksville branch office. She has 12 years of commercial banking experience prior to joining Farm Credit.

W E ST E RN SC E N E

Changing Places

Retirements KATHY GRIGSBY retired in mid-December after 32 years of Farm Credit Service. Working in the Ozark branch office, Kathy was a Loan Accountant. Her experience was valued by the association and her peers and her depth of knowledge won’t be easily replaced. Kathy looks forward to quality family time in retirement.

KAREN PARKS' 21-year career with Farm Credit as a Financial Services Specialist will come to a close on June 30th as she retires. Her retirement plans include quality time with husband Dave, son and daughter-in-law and two grandchildren.

2020 Farmers Market Grant Awards The Farm Credit Associations of Arkansas again sponsored the Arkansas Department of Agriculture’s Farmers Market Grant Awards. Funds are awarded to assist farmers markets across the state with publicity plans. The program is open to all farmers markets, details at www.aad.arkansas.gov.

Charleston Farmers Market Charleston, AR Downtown Conway Farmers and Craft Market Conway, AR Paragould Farmers Market Paragould, AR Conway Farmers Market Conway, AR Vilonia Farmers Market Vilonia, AR

Gateway Farmers Market Texarkana, AR Russellville Community Market Russellville, AR Beebe Farmers Market Beebe, AR Springdale Farmers Market Springdale, AR Spring River Farmers Market Cherokee Village, AR

WRMC Farmers Market Batesville, AR Harrison Farmers Market Harrison, AR St. Joseph Farm Stand North Little Rock, AR Fayetteville Farmer Market Fayetteville, AR Siloam Springs Farmers Market Siloam Springs, AR

Main Street Searcy Farmers Market Searcy, AR Downtown Newport Farmers Market Newport, AR The Square Market Jefferson, AR Pope County Farmers Market Hector, AR

23

3115 W. 2nd Court Russellville, AR 72801

Enriching rural life.

TM

Let Farm Credit’s industry-leading knowledge, competitive products, and more than 103 years of agricultural and rural financing experience help you.

• Farms of all sizes • Livestock • Country home and home construction • Land

• Recreational land • Timber tracts • Forestry products and processing

2020 Photo Contest It’s time to start planning for our annual photo contest!

Contest deadline is September 15.

Enter shots that tell the story of what it’s like to live in western Arkansas. Anyone living in our 41-county Western Arkansas territory may enter. Photos must be taken in our territory, as well.

Two divisions – adult and youth (up to age 18), with cash prizes in both categories PLUS a grand-prize winner.

Grand Prize

$500

(best overall photo from both categories) Entry form and complete details at myaglender.com

1st Place $300 2nd Place $200 3rd Place $100

Cash prizes in both Youth & Adult categories.

Photo by Adalie Self

2019 grand prize winner