Rural Scene
THE
HARVEST TIME AT CRABTREE FARMS & PRODUCE.
WINT E R 2020
Enriching rural life.TM
Rural Scene
THE
On the Cover Regional Vice President Andrea Leding with Paula and David Crabtree of Crabtree Farms & Produce.
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.
In This Issue
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Letter from the CEO Brandon Haberer
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Kohl-laborations Insights from nationally-acclaimed ag economist Dr. David Kohl
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Director Scene 2020 Director Election results
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2020 AR Farm Family recognition Western Arkansas members have earned district and county honors
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Combine-ing Farming and Family Member story
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Community Scene Committed and connected to rural Arkansas
Photo Contest Winners 2020 contest winners
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Western Scene Employee happenings
With a loan volume of $1.5 billion, Farm Credit of Western Arkansas is a member of the 104-year-old Farm Credit System, a nationwide network of borrower-owned lending institutions providing more than $217 billion in loans to rural America.
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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, Brady Willis
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 Darren Neal
Siloam Springs 4970 Hwy 412 East (479) 524–6754 Savannah Dickinson
Mena 1607 Hwy 71 North (479) 394–1027 Rex Dollar
Texarkana 2305 Trinity Blvd. (870) 772–1882 Jonathan Shumate, Jennifer Hooper, Rustin Watson
Clarksville 1007 Interstate Dr. (479) 754–2876 Anna Lester, Sherry Boen Danville 302 E 5th St. (479) 495–2711 Lora Briggs De Queen 800 E Magnolia Ave. (870) 584–3113 Jordan Icenhower Fort Smith 12907 Hwy 71 South (479) 434–4040 Andrea Leding, James Crabtree
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Glenwood 131 Hwy 70 East (870) 356–2023 Adam Baker
Morrilton 1329 Hwy 9 (501) 354–2377 Hank DeSalvo Nashville 302 W Bishop (870) 845–2221 Denise Sweat
Tontitown 1091 W Henri De Tonti Blvd. (479) 717–6740 Misty Eastep Waldron 502 Frankie Matthew Dr. (479) 637–2087 Rex Dollar
Letter from the CEO
Board of Directors A theme has developed this year in spite of obstacles presented by COVID-19. The theme is of a record-breaking year for Farm Credit of Western Arkansas. Many of our metrics and ratios are at either all-time records or at levels they haven’t reached in nearly a decade. By August, our hard-working staff had eclipsed the previous loan growth record. Breaking that record in the first eight months of the year is a remarkable feat. Plus, in the last four months of the year, we have significantly added to that record.
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 Julie Lively, Fulton
Brandon Haberer
Remarkable may not be a strong enough word. In 2020, expenses have trended down and efficiencies have trended up. While these would be amazing accomplishments any year, they are especially impressive in a year that’s held unprecedented challenges.
And the good news continues. Not only do these records demonstrate that we’re working hard on behalf of current members, but record business means we have grown the association with a record number of new members, as well. Our employees are working hard. In August, I worried about employees being able to sustain the increased loan volume. Our employees are a special breed, though. I’m in awe of the dedication that staff, management and the board have demonstrated as we have met all challenges thrown our way. Paramount to 2020’s success is the ever-important referrals you are making to your friends and neighbors. New loan surveys continue to verify that member referrals are our best advertising tool. Your referrals are the highest form of compliment and we thank you. Looking forward, we continue to make smart investments that are enhancing member communication and marketing. We have rolled out an upgraded version of our online banking platform and I encourage you to check it out. 24/7 access to account information has never been easier or safer. Watch for a new, improved website at myaglender.com in early 2021 that will elevate the online customer experience. We are also working on enhancements that include an online loan application platform. While 2020 is certainly not the year we planned for or expected, it will go down in the record books as a tremendously strong year for our association. That’s great news since you, as a member, reap the rewards of the association’s success.
Kenny Martin, De Queen Gene Pharr, Lincoln Mark Wilcox, Greenbrier Steve Young, Paris President and CEO Brandon Haberer
About the Rural Scene The Rural Scene is produced for members and friends of Farm Credit of Western Arkansas. Address comments and story ideas to Editor, The Rural Scene Farm Credit of Western Arkansas 3115 W. 2nd Court • Russellville, AR 72801 Editor Jill Robertson Jill.Robertson@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!
Best wishes for a joyous holiday season. Find us at “Farm Credit of Western Arkansas” on Facebook, and @FarmCreditWEAR on Twitter and Instagram.
Brandon Haberer President and CEO
Member of the Cooperative Communicators Association. © 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.
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DIRE C TO R SC E N E
Letter from the Board Chair Thank you to those who supported our association by participating in the annual election process. Voting gives members a voice in how the association does business, a benefit of membership. Newly elected directors have an improved onboarding process this Kenny Brixey year, compliments of the training department. New directors learn about Farm Credit and our cooperative business structure, the basics of credit and regulations governing the association, and their director role. I’ve been participating and feel like it’ll help new directors hit the ground running. While our lobbies remain closed due to COVID-19, please know we continue to monitor the situation. In the meantime, employees haven’t missed a beat in serving member needs.
It’s a testament to our exemplary employees to see record financial statistics for 2020 and know they’ve done it with lobbies closed and some staff working remotely. Thank you for your continued patience during this unprecedented time. I want to reiterate that our association has worked to address your needs during the pandemic. We became an approved PPP (Paycheck Protection Program) lender in March and assisted with 59 PPP loans. We also created a special program that qualifying members could use to delay payments if they had COVID-related needs. 90 members have used this program. Thank you to the senior management team and, specifically, Senior Vice President and Chief Credit Officer Justin Carter and his dedicated credit analysts for the extra work they did in coordinating and administering both programs.
Kenny Brixey Chair, Board of Directors Farm Credit of Western Arkansas
Delta Peanut A new 71-acre peanut shelling facility has recently opened in Jonesboro. A farmer-owned facility, it is saving Arkansas farmers from having to transport the crop out-of-state for processing. Farm Credit of Western Arkansas joined forces with AgHeritage Farm Credit Services and Farm Credit Midsouth to jointly finance the Delta Peanut operation. Separate Farm Credit associations often collaborate and share large loans. It allows each association to diversify their portfolio and spreads risk among participants. It makes it possible for a large agribusiness to finance with Farm Credit, since a single association may not have the capacity to do it alone. Working together is a fundamental cooperative principle. 4
Financing large agribusinesses provides valuable lending perspective, as well. It allows associations to gain comprehensive industry knowledge and better understand farmer needs.
Dreaming of setting up a deer stand, casting your fishing pole or riding ATVs on land of your own?
LET THE WEEKENDS BEGIN. We finance recreational land. • All size acreage 5 to 5,000+ acres • Low down payment we require less money down than traditional banks • Fixed rates that never balloon interest rate remains the same for the life of your loan • Up to 30-year terms payments to fit your needs Find a branch office near you and call today for details.
myaglender.com
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DIRE C TO R SC E N E
2020 Director Election Results Members electing fellow members to serve as directors is an important part of our cooperative business structure.
Stephen “Steve” Young (Franklin County)
Area #2 – Representing Carroll, Madison, Newton, Franklin, Johnson and Pope Counties Term 2020-2024 Steve Young owns Triple T Farms in Paris where he has a cow/calf operation, three poultry houses and operates a cabinet business. Steve says he desires to serve as a board member to help extend Farm Credit’s services to others because they’ve been a blessing to his own operation.
Kenny Brixey (Perry County)
Area #4 – Representing Boone, Marion, Baxter, Searcy, Van Buren, Conway, Faulkner and Perry Counties Term 2020-2024 A director since 2003, Kenny was re-elected for a fifth term. He owns and operates Brixey Farms in Casa where he raises cattle and operates four broiler houses. Kenny sees the disruption of regular business flow being the most critical issue currently facing the association. He sees staying current with evolving technology that fosters efficiency, the risks associated with new technology, and association growth and board succession as on-going issues critical to the association’s future.
Kenny Martin (Sevier County)
Area #6 – Representing Sevier, Little River, Miller, Lafayette, Nevada, Columbia, Ouachita, Calhoun and Union Counties Term 2020-2024 Re-elected for a second term, Kenny has served as a director since 2016. He is a veterinarian and owns a small cow/calf operation in De Queen. He also raises show animals. Kenny sees keeping the association strong and on good footing for its future customers as critical for the association. To accomplish this, Kenny believes it’s important for the association to stay ahead of potential economic issues, navigate the current political landscape, stay in front of technology and prioritize member needs.
$4,850 will be split equally between the Arkansas FFA Foundation and the Arkansas 4-H Foundation in appreciation for members participating in the 2020 election process. Each eligible ballot returned earned a $10 donation. 6
All serve a one-year term and are responsible for slating candidates for the 2021 director election.
● Bentonville
Siloam Springs ●
AREA 1A
AREA 2A
Justin "Taylor" Gattis • Franklin
Madison
● Huntsville Newton
● Prarie Grove
Franklin
Crawford
Searcy
Johnson
Van Buren
● Ozark
AREA 1B AREA 3A
Ronnie T. Horn • Washington Allen L. Johnson • Logan
AREA 2B AREA 4A
James A. Ford • Franklin
Baxter
Marion
● Harrison
● Tonitown Washington
William "Will" P. Lane • Benton
Boone
Carroll
Benton
Pope
● Clarksville ● Fort Smith
Conway
Russellville
Logan Sebastian
Ronnie D. Hall, Sr. • Faulkner
Faulkner
● Paris
● Greenbrier
● Morrilton Yell
● Danville
DIRE C TO R SC E N E
2021 Nominating Committee Members
Perry
● Waldron Scott Saline
AREA 3B
Casey T. Cotton • Logan
AREA 4B
James W. Mann • Perry
Polk
● Mena
Randy W. Peck • Hempstead
AREA 6A
Jonathan "Johnny" Dooley Sevier
Pike
● De Queen Sevier
● Benton
Hot Spring
● Glenwood
Howard
AREA 5A
Garland
Montgomery
Grant
● Arkadelphia
● Nashville
Clark
Dallas
Hempstead
AREA 5B
Danielle M. Kitchens • Howard
AREA 6B
Jacob Hooper • Sevier
Nevada
Little River
● Hope
Ouachita
Calhoun
● Texarkana Columbia
Miller
Election result totals are available to stockholders upon request. Contact Ginger Tippit at ginger.tippit@myaglender.com or 479-968-1434 (ext. 5119). Or, write to: Ginger Tippit, 3115 W. 2nd Ct., Russellville, AR 72801.
● Magnolia
Union
Lafayette
Director Bill Linton Retiring Bill Linton is retiring after eight years of service to the board of directors. He began his Farm Credit career as a loan officer in 1975 and retired in 2010. As a former employee, he’s offered unique perspective since joining the board in 2012 and his contributions will be missed. In honor of Bill’s service, the Board of Directors will award a scholarship to a Dover High School ag student in May, 2021. Thank you, Bill!
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. • The board selects and appoints one stockholder. • The board selects and appoints two non-stockholders.
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M E M B E R SC E N E 8
Combine-ing
Farming and Family Harvesting more than soybeans along the Kibler Bottoms
“I’ll be honest,” explained Paula Crabtree of Crabtree Farms & Produce. “I’m always nervous during harvest time. So many things have to come together and weather is critical. One little issue can bring harvest to a halt and we don’t get a paycheck until the beans are delivered to the elevator.” A few weeks into this fall’s six-week soybean harvest, a broken part brought the Crabtree’s combine to a standstill. “Unfortunately, machinery breaks down from time to time,” shrugged David Crabtree. “Frustrating for sure, but that’s farming.” Paula, who plays an important supporting role during harvest, quickly drove 270 miles round-trip to pick up the needed replacement part. David and Paula’s fortitude has been honed from a lifetime of row crop farming. The family behind the multi-generational farm understands the risks and navigates the challenges. Along the way, the family has come to embrace the benefits and blessings of the farming lifestyle. The family farms 2,000 acres of owned and leased land in Kibler Bottoms, adjacent to the Arkansas River near Van Buren. The rich soil along the river allows them to rotate varying quantities of soybeans, wheat, corn, watermelon, sweet corn and pumpkins annually. David and Paula share ownership and responsibilities for a portion of the acreage with son Matt and his wife Summer, and with David’s brother William and brother Henry and his wife Audrie on another portion of acreage. David and Paula’s three children and five grandchildren play active roles on the farm, as do most family members. LOVING THE LIFESTYLE “I love farming and the independence it offers,” said David who stood at the foot of the idle combine during a rare break in the fall soybean harvest.
“I’d say that I enjoy working for myself but, in truth, I guess I sort of work for Farm Credit and John Deere,” he chuckled. “It’s a challenge every year, but I never want to quit. I don’t want to ever retire,” he added. “We often say our three children are the best thing we ever grew on the farm by far,” Paula smiled and added from David’s side, referring to the couple’s adult children Matt, James and Andrea.
M E M B E R SC E N E
Uncertainty, risk and escalating costs of operation. While some may consider the challenges of row crop farming overwhelming, the Crabtree family of Crawford County is proving success is possible. And it’s a family affair.
According to Paula, the children began pitching in from a young age. She remembers having all three in the field hoeing soybeans. The task had to be complete before the family could leave on a planned trip to Branson. It was an early lesson in how many hands make quick work. “Raising kids with farm responsibilities teaches a strong work ethic, how to treat people and how to treat the land,” Paula said. “I think these life lessons make them stronger adults.” “While we expected our children to work hard, they also learned it’s OK to play hard when work is done.” There have also been lessons on helping neighbors along the way. Paula shared that they once lost power to the chicken houses when the electricity went out. She, David and the children were in the midst of the disaster when she looked up and counted 28 neighbors and family members working alongside them. Without being asked, they had dropped everything to come help. “Picking up dead birds is never anything you’d ask friends to help with,” she said somberly as she remembered what that act of kindness meant to the family. “It left an impression on the kids. That’s a lesson you only learn by experiencing it.” Paula is quick to say faith-based lessons are the most important ones they’ve instilled in their children. “We’re only doing what we’re doing by the grace of God,” Paula explained. “This land is His and we’re really just paying rent as we pass through. We thank God for what this farm provides and we care for His land accordingly. That’s something the whole family values.”
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M E M B E R SC E N E
Jared Haughton (son-in-law), Matt, David, William, Henry and James playing hard after the work is done.
Grandchildren Anna Beth holding Lila, Lawson, Hudson and Lincoln.
Paula at the Produce Shed
Crabtree Farms & Produce is a testament to the family’s values. Not only do the three Crabtree brothers farm together, but they are now joined by spouses, children and grandchildren who love the farm too. Each family member plays a special role. David and his brothers share leadership and each contributes unique skills to the farm’s success. In David and Paula’s family, Paula handles the bookkeeping and manages on-site seasonal produce sales. While sons Matt and James and son-in-law Jared all have full time off-farm jobs, they assist on weekends as needed. Jared coined the farm’s marketing slogan, “We grow it, you eat it.”
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Daughter Andrea and daughters-in-law Miranda and Summer assist with seasonal produce sales. You can find the older grandchildren assisting customers at the cash register when the produce shed is open. Summer also manages the farm’s social media presence. Sister-in-law Audrie plays a pivotal role during planting season. Niece Lettie, an Alma high school senior, has taken on increasing responsibilities managing farm labor and seasonal sales.
Living nearby and gathering on the farm keeps the family connected. “We consider it a blessing to have our family close and involved on the farm, as well as seeing our grandchildren enjoy this lifestyle,” Paula said. At the Crabtree farm, each new grandchild receives a farm-related peddle toy. The tradition inadvertently began when David and Paula purchased a new tractor the year their first grandchild was born. Paula jokingly asked the equipment dealership to throw in the child-size peddle-powered tractor toy she saw on display, and they did. Each subsequent grandchild has received their own farm-themed peddle toy to play with at David and Paula’s house, leading the family to refer to the miniature machinery as the grand fleet. THE LOAFIN’ SHED The Produce Shed is the hub of the farm. While open for seasonal produce sales, Paula said you can find a handful of community folks congregating there at other times of the year, as well. As a nod to the
M E M B E R SC E N E
Grandson Lawson with a bumper crop of watermelon.
Produce sales extend into Fall with pumpkin sales.
David and Paula planting watermelons in the spring.
regularity of these neighborly gatherings, Paula has come to affectionately call it The Loafin’ Shed.
held during the 500-year flood of 2019, protecting Van Buren, the industrial park and valuable farmland.
Seeing an increasing demand for local produce, they built the shed to facilitate seasonal sales of their sweet corn, watermelon and pumpkins. Due to demand, Paula has added produce from area farms as well.
A LITTLE BACKGROUND
“Everything is local and fresh. That’s a must. We’re transparent about what’s from our farm and what’s from other farms,” she explained. The family agrees that the shed becoming a community gathering spot is an added plus for the farm. David and Paula’s children surprised them with a 40th anniversary party at the shed in 2017. Direct produce sales to the community ties in with Paula’s passion to help people of all ages understand where their food comes from. While COVID-19 prevented the event this year, the family normally hosts an annual Family Farm Day as a thank you to customers. For years, she’s also volunteered at a farm day for elementary students. She jokes that she’s the hamburger lady, using a giant hamburger prop to explain how each component of the burger comes from the farm. David gives back to the community as a member of the Levee District #1 board. The Van Buren levee
David and Paula were raised on farms. Both were familiar with row crop operations and Paula’s family also raised poultry. When they married, they settled in Mulberry and began raising turkeys. In 1983, the Crabtrees borrowed $35,000 from Farm Credit to construct a turkey brooder house. Ironically, that was the same year middle son James was born. Ironic because James went on to work for Farm Credit 30 years later. James is Vice President and Branch Manager of Farm Credit of Western Arkansas’ Fort Smith office. “That was a lot of money in 1983,” remembered Paula. “I remember thinking we’d never pay it off.” Instead, the couple repaid the loan in seven years. A testament to the couple’s strong farming and managerial skills. 37 years later, those skills continue to benefit their operation. In 1998, they moved their family to a home on 65 acres in Kibler and built three chicken houses. The remaining acreage farmed by the family is within a five-mile radius.
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M E M B E R SC E N E
THE CHALLENGE IS REAL Growing up, David says he spent untold hours helping with all facets of soybean farming. He worked hard and purchased a new 1975 Camaro for $4,500 the year he graduated high school. Soybeans averaged $8.00 - $9.00 dollars a bushel and went as high has $13.00 a bushel that summer.
David’s at home in the cab of the combine.
Today, sitting at the controls of his combine, he’s looking down on rows of soybeans he knows will bring about $11.00 a bushel. He explains that for much of 2020, soybean prices have averaged $8.00 - $9.00 a bushel. Now, a new Camaro can easily cost more than $50,000 While total bushels per acre have improved somewhat over time, David’s example highlights the struggle of row crop farming. Commodity prices remain unchanged in 45 years, yet every other cost of farming has increased dramatically. “Back then, a combine would run about $45,000 to $50,000. Today, that piece of machinery is $600,000 plus,” he explained.
David and son James examine the 2020 soybean crop.
“My father raised a family of seven on about 300 acres. That’s impossible today. More land is required to make a living this way and young people can’t afford it,” he continued. According to David, about 50 families farmed the roughly 25,000 acres comprising Kibler Bottoms when he was a child. Today, nine farms make up that same total area. David predicts fewer farmers will farm the area in the next generation. FROM FARM TO FARM CREDIT As mentioned earlier, the Crabtrees’ connection to Farm Credit runs deeper. Son James Crabtree joined Farm Credit in 2013 as Assistant Vice President and Loan Officer. He has an ag business degree from the University of Arkansas and had seven years of lending experience under his belt when he joined the Van Buren office. Being raised in farming and having a continued connection to the family farm gives James a valuable and unique perspective when sitting across the desk from a customer.
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“I empathize with farmers,” he explained. “I know first-hand the highs and lows that come with the
M E M B E R SC E N E
industry because I’ve lived it with my family and continue to have a personal connection through the family farm.” “I became intrigued with lending when my family financed their chicken operation in 1996. It was my first glimpse at what goes on behind the scenes and I know what Farm Credit has meant to my family and their farming operation over the years.” He knew Andrea Leding (Van Buren Branch Manager at the time) as his parents’ loan officer, but didn’t apply to work for Farm Credit until he saw an ad in the newspaper. Ironically, he’d run into Andrea at a farm expo not long before. When teased about wearing a suit and tie because he’d come straight from his job at the bank, he joked that he’d like to work for Farm Credit one day so he could ditch the tie. Timing is everything. James said the loan officer opening in Van Buren was perfect because it allowed him to stay in the area. Other than college, he’s never lived further than two miles from the farm. In 2015 the Van Buren staff moved to the newly-constructed Fort Smith office. James was named Vice President and Branch Manager in 2018.
Audrie, Lettie, Paula, Anna Beth and Summer
“I’ve been fortunate to build a relationship with the Crabtrees over the past twenty years,” Andrea said. “I’ve come to know them, how they manage their business and the ins and outs of their operation.” “When they come to me with a financing need, I know they’ve already thought it through and made a plan. It takes strong business management skills to have long-term farming success and the Crabtrees definitely do.” Paula said the most valuable part of their relationship with Andrea is knowing she understands the uncontrollable variables that can impact profit margin in row crop farming. “We can pick up the phone, let her know what’s going on and what we need. It’s like doing business with a trusted friend,” Paula said.
Summer, Miranda and Andrea
THE FARM CREDIT CONNECTION
When it comes to working together on the family farm or working with a lender who understands agriculture, one thing is certain – trusted relationships are the foundation of success.
Andrea Leding remains the Crabtrees’ loan officer. Strict regulations preclude James from having any access to, or connection with, family loan business. While now Regional Vice President, Andrea still maintains a direct lending relationship with a number of members. “Lonnie Jennings was our first loan officer and we appreciated his patience and guidance as we got started,” Paula shared. “Andrea became our loan officer when he retired and she never missed a beat with our lending needs.”
Story by Jill Robertson Photos by Jill Robertson and the Crabtree family
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Photo Contest Winners
Grand Prize - $500
Brennen Duffield • Perry
1st Place Adult - $300 Matthew Wilkins • Columbia
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1st Place Youth - $300 Anna Sweat • Hempstead
2nd Place Youth - $200 Claire Walston • Polk
2nd Place Adult - $200 Doug Nordin • Pope
3rd Place Adult - $100 Tod Johnson • Washington
3rd Place Youth - $100 Judd Milam • Nevada
KOHL
-laborations
Commentary, wisdom, and perspectives from globally renowned agricultural economist, Dr. David M. Kohl.
Post-Harvest Action Plan The days are getting shorter and many producers are putting the finishing touches on harvest. This year has certainly been one for the record books! The black swan pandemic, with all its economic, financial, consumer, and social implications, has accelerated many changes. Let's put 2020 in the rear-view mirror and focus on the big picture variables and their implications to your post-harvest planning process. Our discussion will center on your business action plan for 2021 and beyond.
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The global macroeconomic radar screen will lead to extremes in economic and financial volatility. This volatility will require businesses to be financially agile with an emphasis on working capital and quickness to cash. Within this context of management, resiliency will be measured by one's competitors and the cost of production compared to domestic and international peers. Building business resiliency for the long run must include preparing the next generation’s business and financial IQ. These skills will create the economic divide for the next decade. There will be a widening gap of profitability between the top and bottom third of agricultural producers’ business performance.
What are the specific global macroeconomic risks? The number one risk will be agricultural trade negotiations and progression. One in five dollars of net farm income is generated through the export markets. For some commodities, such as soybeans, the percentage is much higher. The COVID-19 pandemic has accelerated the movement from globalization to deglobalization. Global supply and marketing chains will be evaluated between countries and regions of the world driven by the business, consumer, government, and political agendas. Agriculture will be front and center in these actions, resulting in extremes in volatility influenced by daily headlines. With the trade agreements, pay close attention to China's dual circulation five-year plan. Rather than being U.S. centric with trade, more economic activity in China will be driven internally or within the Asian region. China's Belt and Road Initiative, which started in 2013 with over $1 trillion of spending in 68 countries, will be refocused on medical innovation and assistance as they spread their influence throughout the globe.
Next, an analysis of supply and marketing chains with a specific focus on the concentration of processing plants and the ethanol industry's economic status will drive the economic bottom line. A lesson learned from Spring 2020 was that concentration and efficiency can be fragile and sometimes fatal. Whether it is a supply or marketing chain, diversification brings agility and resilience.
Finally, implement strategies that have been previously mentioned and discussed with specific action plans for the post-harvest season.
A critical post-harvest analysis is to examine the income statement in the context of government support payments as a percent of net farm income. A plan for 2021 and beyond needs financial sensitivity testing ranging from 25, 50, and to 75 percent cutbacks in government support payments. What is going to be the post pandemic government support plan? Will this support plan come with a steep price in the form of higher local, state, and federal taxes and a possible wealth tax, which would greatly affect the agriculture industry?
• Take time to develop a personal family living budget. This is just as important as the farm budget.
The U.S. and global economic recovery will be disjointed with some businesses and employers closing for good, while others experience a significant loss of income. Some businesses, such as Amazon and other tech companies, could actually thrive economically.
• Develop a written cash flow with revenue and cost sensitivities based on your production, marketing, and risk management programs. Remember, cash flow is 80 percent of a business plan.
• Reevaluate your business, family, and personal goals and objectives. Do not forget yourself in the goal setting process and be sure to evaluate your physical, mental, and spiritual balance. • Finally, develop a formal or informal advisory team. This could include your lender, accountant, or a crop, livestock, or financial consultant. Collaboration and having a sounding board are great ways to maintain both business and emotional balance. Dr. Kohl is Professor Emeritus of Agricultural Finance and Small Business Management and Entrepreneurship at Virginia Polytechnic Institute and State University.
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2020 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. A virtual event in December will honor district winners and announce the state Farm Family of the Year winner for 2020. The Arkansas state winner will compete in the Sunbelt Ag Expo Southeastern Farmer of the Year competition.
District Winners
County Winners
Northwest District The Stone Family Carroll County Mark and Leah raise cattle and poultry on 960 acres in Berryville. The family has been farming for 28 years and have three children, Garrett, Landon and Marlea.
Western District James and Tiffany Miller Yell County James and Tiffany have been farming in Dardanelle for 14 years. They, along with their children, Maeleigh and Chap, raise cattle and hogs on 630 acres. James and Tiffany take part in their family processing business, Miller Quality Processing.
Boone
Logan
Will & Rachel Norton family of Harrison
Gerald & Rachel Strobel of Paris
Calhoun
Montgomery
Rick & Shelley Hargett of Hampton
Mark & Katelyn Cogburn of Norman
Crawford Kevin & Jennifer Hightower of Rudy
Perry Quinten & Dena Johnson of Dardanelle
Johnson
Sebastian
Rickey & Betty Brown of Clarksville
Clint & Casey Gann of Hackett
Lafayette
Sevier
Southwest District Chris and Denise Sweat Hempstead County Chris and Denise have 500 acres in McCaskill where they raise cattle, sheep and rabbits. They have been farming for 23 years and have two daughters, Sara and Anna.
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Shane & Mandy McLelland of Lewisville
Ismael & Maria Ramirez of DeQueen
C O M M U N IT Y SC E N E
Arkansas Farmer Veterans Coalition The Farm Credit Associations of Arkansas proudly support the Arkansas chapter of the new Farmer Veteran Coalition through designated donations to the Arkansas Department of Agriculture. With 410 members, the Farm Credit Associations of Arkansas proudly supports the Arkansas chapter through designated donations to the Arkansas Department of Agriculture. The Arkansas Department of Agriculture coordinates the Homegrown by Heroes branding program administered by the Farmer Veteran Coalition. The program enables farmer veterans to label and market their local agricultural products as veteran-produced. To join the Farmer Veteran Coalition and Arkansas Grown Homegrown by Heroes programs, farmers must be a veteran or currently serving as an active duty, National Guard or Reserve member of the United States Armed Forces. Learn more by contacting Arkansas Homegrown By Heroes Program Manager Karen Reynolds at 501-529-1630 or visit arkansasgrown.org/homegrown-by-heroes/.
“When consumers see an Arkansas Grown Homegrown by Heroes logo, they know the food they are purchasing was grown in Arkansas by an Arkansas veteran,” said Arkansas Secretary of Agriculture Wes Ward at the Veteran Farmers Coalition event on Veterans Day. “The Arkansas Department of Agriculture appreciates Farm Credit’s support of this important program, and we are proud to honor Arkansas farmer-veterans.”
$1,500 HomeGrown by Heroes Scholarship Winners Farm Credit sponsors the Homegrown by Heroes scholarships awarded through the Arkansas Department of Agriculture. Two $1,500 awards were made this year. Taylor Brandt of Bentonville is the son of an Army veteran. He is studying food science, agribusiness and horticulture at the University of Arkansas. Gavin Sparks is the son of an Arkansas Army National Guard veteran serving active duty. He graduated from Harding Academy and attends Mississippi State University where he is studying precision agriculture and crop consulting.
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2020 School Garden Contest Winners Together with AgHeritage Farm Credit Services and Farm Credit Midsouth, we sponsor the annual School Garden Contest administered through the Arkansas Department of Agriculture. $4,000 was awarded in six categories.
2020 Winners $1000
Champion Sustaining School Garden Carolyn Lewis Elementary School (Conway)
$500
Best Harvest Partnership School Garden Fayetteville Public Schools (Fayetteville)
$1000
Overall Best School Garden West Arkansas Child Development, Inc. (Alma)
$500
Best Education-Based School Garden ACCESS Group, Inc. (Little Rock)
Best Community Collaboration School Garden Hugh Goodwin Elementary (El Dorado)
$500
Best Start-Up School Garden Fairview Elementary (Texarkana)
$500
FFA Calf Raffles For the 20th year, our Harrison branch office has supported area FFA chapters by offering a calf raffle. FFA chapters in their six-county service area have raised more than $500,000 through this venture since 2000. Farm Credit supplies the calves and chapters sell as many tickets as they like. Chapters keep 100% of the profits! To further incent students, Farm Credit offers a pizza party to the chapter selling the most tickets. Mt. Home FFA sold the most tickets this year with 7,037. 2020 Winners: Boone/ Carroll County Newton/ Searcy County Marion/ Baxter County
Bryan Bench (purchased ticket from Bergman FFA) Angela Brannon (purchased ticket from Jasper FFA) Holly Morris (purchased ticket from Cotter FFA
$20,000 in gifts to FFA & 4-H
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Farm Credit of Western Arkansas, in conjunction with AgHeritage Farm Credit Services and Farm Credit Midsouth proudly supported both the Arkansas 4-H Foundation and Arkansas FFA Foundation with $10,000 gifts this year.
Benton County FFA & 4-H Support Our Bentonville and Siloam Springs branch offices supply prizes for a fundraising raffle for Benton County FFA chapters and 4-H clubs. Chapters and clubs sell as many tickets as they like and keep 100% of the proceeds. This year, Dorthy Newsom of Gentry took home a new grill and YETI cooler thanks to her winning ticket.
Mask Making in Full Swing
The Farm Credit Associations of Arkansas donated $5,300 to The Beef Project administered by the Arkansas Hunger Relief Alliance. The Beef Project supplies protein donations to hungry Arkansans (especially the elderly) via the Arkansas Hunger Relief Alliance’s established network of regional food banks.
24 employees have made more than 300 masks as a token of community support during the coronavirus pandemic. Employees making the masks are giving them to customers, friends and family.
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$5,300 Beef Project Donation
Community Connections We value the contributions our employees make through volunteer work and leadership in their local communities. To foster these connections and honor employee commitment, we donate up to $500/employee annually, to qualifying non-profit organizations.
$500 - THE CALL (Glenwood, AR) Appraiser Brian Cowart’s volunteer leadership with THE CALL in Glenwood earned the non-profit organization a $500 donation. THE CALL works to connect foster children with adoptive families.
$500 - Kiwanis (Huntsville, AR) Financial Services Specialist Jo Upson is an active board member for the Huntsville chapter of the Kiwanis. Focused on children in the community, she regularly participates in on-going events and services in addition to her board responsibilities.
$500 - Habitat for Humanity (Russellville, AR) Utilizing his professional knowledge, IT Analyst Jared Qualls volunteers valuable IT and computer services to Habitat for Humanity Pope County. Habitat builds homes and prides itself on the fact that homeowners pay an affordable mortgage, receive financial education and help build their homes alongside volunteers.
$500 - Kiwanis (Morrilton, AR) Eric Birkner, Capital Markets Analyst, serves on the Morrilton Kiwanis board. The Kiwanis organization focuses on improving the lives of children and Eric is a part of a special mentoring program coordinated by the Morrilton Junior High School counselor.
$500 - Boone County United Way (Harrison, AR) For the past five years, Financial Services Specialist Chris Criner has been president of the Boone County United Way board. The organization supports 21 local non-profit agencies that provide valuable services to the community.
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From: To: Subject: Date:
New Faces Kara Buchanan Kara Buchanan Pic Thursday, November 5, 2020 1:13:26 PM
KARA BUCHANAN began her Farm Credit career as a Financial Services Specialist in De Queen on October 1. Originally from Haworth, OK, Kara grew up on a small cattle farm and enjoyed showing goats and lambs in high school and participated in rodeo. She, fiancé Dakota and five-year-old son Cannon live in Lockesburg. Kara’s hobbies include camping, kayaking and deer hunting.
GRACE FORD TURNER, Financial Services Specialist in the Texarkana branch office joined the Farm Credit team in mid-October. A native of Hope, Grace was raised on a three-generation cattle farm and helped with the family’s livestock sale business. She earned a degree from Southern Arkansas University. Married in mid-November, she and husband Tanner have a feeder-cattle operation in Hope.
Kara Buchanan
Changing Places
ROBERT HARDEN was named Chief Appraiser early this fall. Robert has been an appraiser in the Hope office since joining Farm Credit in 2002.
Retirement Chief Appraiser JIM WIEDEMAN will retire on December 31 after a 40-year Farm Credit career. Jim joined the White River Production Credit Association in Newport, AR in 1980 as a loan officer. He moved to Farm Credit of Western Arkansas’ Russellville branch office in 1990 and served as a loan officer until becoming an appraiser in 2004. He was named Chief Appraiser in March of 2017. Jim and wife Kendra plan to travel once the pandemic subsides and hope to start with visits to several national parks.
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Our lobbies remain closed due to COVID-19, but we still want to put a calendar in your hands. Call your local branch if you’d like to be mailed a FREE 2021 association calendar. Calendars feature entries from our photo contest. (Find the phone number for your local branch office on page 2.)
2021 Scholarships $1,000 Each Scholarship details and application form can be found at myaglender.com. Graduating high school seniors and current college students (with at least one year of full-time student status remaining) qualify. Application deadline is MARCH 5, 2021.
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2021 Calendars are Available!
Women in Ag Conference Arkansas Women in Agriculture have set a preliminary conference date of March 16-17. Complete details at arwomeninag.org.
Online Banking Check out our new, updated online banking app. 24/7 access to your account information at your fingertips! Assistance available at 479-968-1434 (M-F 8:00 AM – 4:30 PM). Free and available from the app store for your device. Search “Farm Credit Western Ark”.
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3115 W. 2nd Court Russellville, AR 72801
Enriching rural life.
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Let Farm Credit’s industry-leading knowledge, competitive products, and more than 104 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
Happy Holidays
Holiday Hours Wednesday, December 23 Thursday, December 24 Friday, December 25 Friday, January 1
Closed Closed Closed Closed
Payments must be made by NOON on Thursday, December 31 to be credited for 2020. On all other business days, payments are due by 3:00 PM. If mailing your payment, please allow a minimum of five business days for delivery.
Photo by Rick Covert of Perry County 2020 Photo Contest Entry
Regular Business Hours:
Monday – Friday
8:00 AM – 12:30 PM (12:30 PM – 1:00 PM closed for lunch) 12:30 PM – 4:30 PM
