FCS Financial 2014 Summer Heartbeat

summer 2014

Just outside St. Louis and learning

to exist in their environment.

Board of Directors — FCS Financial ACA James Nivens, LaRussell, Chairman

Stacy Hambelton, Gainesville

Mark S. Pierce, DeKalb, Vice Chairman

Daniel Hulse, Hannibal

Kenneth Bergmann, Walnut Grove

Sherry Jones, Dawn

Michael L. Bruce, Nevada

David Meneely, Chillicothe, Appointed

Michael L. Cook, Columbia, Appointed

Troy Norton, Columbia, Appointed

Mark DeShon, Clarksdale

Rick Rehmeier, Augusta

Dan Devlin, Edina

Charles Steck, Jefferson City

Maurice Glosemeyer, Marthasville

Office Locations Cameron 816-632-7265 Chillicothe 660-646-5044 Clinton 660-885-8164 Columbia 573-449-5910 Farmington 573-756-5747 Hannibal 573-221-0273 Harrisonville 816-884-3061 Higginsville 660-584-7181 Jefferson City 573-636-7131 Joplin 417-572-0011 Lebanon 417-588-5828

1-800-225-6949 1-800-264-3276 1-866-885-8164 1-800-241-5910 1-800-276-8120 1-800-798-0273 1-800-517-3348 1-866-584-7181 1-800-292-7131 1-866-451-6084 1-866-588-5828

Macon 660-395-1940 Marshall 660-886-6897 Maryville 660-582-6464 Mexico 573-581-3192 Nevada 417-667-8206 O’Fallon 636-327-1787 St. Joseph 816-279-2118 Sedalia 660-827-5810 Springfield 417-862-4158 Union 636-583-5400 West Plains 417-256-2298

1-800-432-2156 1-800-228-6897 1-800-813-5722 1-800-314-3192 1-888-667-9681 1-800-379-3276 1-866-279-2118 1-800-310-5810 1-866-862-4158 1-800-583-5480 1-866-256-2298

Publication Information CEO: Editor:

David Janish Amy Wieberg, amy.wieberg@myfcsfinancial.com

HeartBeat is published three times a year by FCS Financial. Please address any comments to FCS Financial, Attn: HeartBeat Editor, 1934 E. Miller St., Jefferson City, MO 65101. For more information about FCS Financial or to access your account online, visit myfcsfinancial.com

Member Cooperative Communicators Association

2

HEARTBEAT | SUMMER 2014

Printed with farmer-grown soybean ink on recycled paper.

Linda & Bill McLaren tell you how they are advocates for agriculture amid the shadows of the big city lights.

Table of Contents Dave’s View .............................................4 Member Feature ...................................6 Youth in Ag .......................................... 13 Risk Management ............................. 18 Life is Simple ....................................... 19 Dollars & Cents ................................... 20 News Briefs .......................................... 22 Niven’s Notes....................................... 31 HEARTBEAT | SUMMER 2014

3

DAVE’S VIEW business is ahead of budget, we also found ourselves heavily involved with youth programs, community service and political campaigns – all important issues that are centered on the future of agriculture in Missouri and the growth of our industry.

MISSOURI FARMING AMENDMENT

David Janish, CEO

We are at the midpoint of 2014. We began the year with the uncertainty surrounding the Farm Bill, high agricultural land values across the U.S., and the effects (both positive and negative) of lower commodity prices on producers. Thus far, FCS Financial and our member-customers have weathered these issues relatively well. However, the economic forecasts indicate that the next few years will be more of the same. Agriculture is a cyclical business, and the ability to manage through the highs and lows is often the determining factor in long-term success. Our Mission is to assist our member-customers make sound financial decisions in reaching their full financial potential. Although “the customer” and “the lender” looks at issues from different perspectives, our mutual goal is the success of membercustomers regardless of the economic environment.

In a few weeks, FCS Financial’s leadership team will begin their annual business planning process. As I prepare for this meeting and reflect on the accomplishments in the first half of 2014, I am reminded of a quote from Henry David Thoreau: “It is not enough to be industrious; so are the ants. What are you industrious about?”

I believe Thoreau is telling us that we must stay focused on what’s important. As an ag lender, FCS Financial must stay focused on financial performance, marketplace activities, and sound credit quality. While our portfolio remained strong and new 4

HEARTBEAT | SUMMER 2014

RIGHTS

The Missouri Farming Rights Amendment will be on the August ballot. As an agricultural cooperative, it is important to protect our membercustomers’ rights to farm and ranch in Missouri which is why FCS Financial supports this amendment. We have seen that groups opposed to the amendment are trying to make this a small or family farmer versus corporate agriculture issue. In reviewing the amendment, we do not see any favoritism or benefit to a Missouri farm based on its size or scope. This is one of the main reasons for our support, it will impact Missouri agriculture as an industry, not any one segment or production type.

As stated on the Missouri Farmers Care website (www.MoFarmersCare. com), the amendment will: • Save Missouri jobs and defend the hardworking farm families who drive our state economy; • Protect Missouri’s family farms from out-of-state animal-rights groups that have targeted Missouri agriculture in the past; • Protect small and family farmers as they do not have the resources to mount legal challenges or relocate their farms like corporations can.

It will not: • Invalidate county ordinances because counties derive their authority from the state constitution and established state laws; • Give farmers a “blank check.” All rights are subject to reasonable regulation and that will still be the case under the Missouri Farming Rights Amendment.

I encourage you to research the amendment and vote on August 5.

SERVICE TO OUR COMMUNITIES Now in its scholarship standing supporting

tenth year, FCS Financial’s program is our longest program dedicated to Missouri’s rural youth,

specifically the children and grandchildren of our customers. Since its inception in 2004, we have provided nearly $360,000 in scholarship funds.

We also recently distributed $24,000 in Shaping Rural Missouri grants to 49 FFA or 4-H groups who will use the grant for community betterment projects. You can always see updates on these grant projects under the News and Events section of our website at www. myfcsfinancial.com.

Volunteerism in our communities has long been a foundation of agriculture and the Farm Credit System.

To enhance the association’s financial support to our communities and support current volunteer efforts, we initiated a new employee program. Partners in Doing allows our employees to spend 8 work hours each year volunteering at the charity of their choice. Since the kick off in May, we have seen our employees volunteer with the American Cancer Association through Relay for Life, Ozark Trail Association and Lawrence County 4-H. FCS Financial recognizes that there are many people in our communities who need assistance. As such, FCS Financial introduced our Boost Your Impact initiative in May. FCS Financial will match up to $25 per employee this year to a 501(c)(3) charity of their choice.

FCS Financial also introduced our Youth in Ag Funding program in early 2014 to support our next generation of farmers and ranchers. FCS Financial will provide access to funds for FFA and 4-H members to complete agricultural projects in conjunction with their ag youth organization. The funds are obtainable at no cost to the students with an agreement they will repay the same amount used in a specific period. The funds may be used for a wide array of projects within this program. As of June 30, nearly $44,000 has been provided.

As FCS Financial moves into the second half of 2014, I can assure we will stay focused on keeping your cooperative strong for future generations. Thank you for being member.

Sincerely,

NEVADA OFFICE TAKES SHAPE This October, FCS Financial in Nevada will have a new home located at 1925 N. Osage Blvd. Construction of the new office began in March and a grand opening is being planned for this fall. Details will be provided through this publication and our website (myfcsfinancial.com). Invitations will be mailed to current Nevada customers closer to the event. In the meantime, we hope you enjoy our photo journey through the construction process!

Preparation of the site (left) including razing an existing building. In April, footings and the walls for the restrooms were poured (right).

The restroom area is “hardened� which means it consists of poured concrete walls and ceiling to serve as a storm shelter for the building.

A few weeks into May, the steel was installed, floors poured and part of the curbs installed. By the end of May, the building was taking shape with roofing and framing underway.

Framing, masonry work, HVAC installation and sheet rock installation are underway and nearing completion in June. Detail and finishing work begins soon.

HEARTBEAT | SUMMER 2014

5

MEMBER FEATURE

ADVOCATES FOR AGRICULTURE

By Joann Pipkin

As the hustle and bustle of Interstate 44 nears the gateway city, a quiet highway leads us to the south. The path winds through the countryside, limbs tossed aside from an early morning summer rainstorm.

Hiding in the shadows of the urban metropolis, rural Missouri here takes on its own identity.

Well-kept houses surrounded by small parcels of land seem to be the theme. Still, agriculture thrives in this environment.

Turning down the dead-end road, a picturesque palette of early summer welcomes the visitor to a little creek-side valley. Crooked Creek Beef calls it home.

Bill and Linda McLaren have made a mark for their Crooked Creek Beef in the quiet countryside near Pacific, Mo., just southwest of St. Louis. It’s here that Bill has come to call himself an agricultural evangelist.

True advocates for agriculture, the McLarens link producer with consumer in all their ventures. From farm-raised beef to their barn-themed wedding venue, Left: A renovated old stone barn serves as the base of the McLaren’s wedding venue at their Haue Valley farm, just off Interstate 44 near Pacific. An old silo and cistern mark the barn’s heritage, while a new subdivision lurks on the farm’s western horizon. The barn was originally renovated to accommodate their daughter’s wedding.

Opposite page: Bill McLaren’s great uncle John Howe was a 4th grade educated horticulturist who taught at St. Louis University. He grafted trees and planted more than 450 varieties of daffodils where Haue Valley stands today.

the McLarens help agriculture thrive amid their urban environment.

CARRYING OUT A LEGACY Bill McLaren and Linda Young met while students at the University of Missouri-Columbia. Both have had a passion for agriculture their entire lives. Bill’s degree is in animal science and ag economics, while Linda’s is in ag education. After they married, the couple spent some time in mid-Missouri near Sedalia, where Bill worked for Linda’s father on his row crop and hog farm and Linda taught for a few years. They moved to the St. Louis area in the early 1980s and have developed their passion for agriculture on the farm Bill’s grandfather settled in 1923.

Originally 120 acres, Bill tells how his grandfather passed away at a young age in 1936 while building the family home on the farm. It was the middle of the Great Depression and Bill’s grandmother raised four children on the farm. “There was no running water. No electricity,” he recalls. “The house didn’t have a roof on it yet. She finished the house, raised four kids, hand-milked the cows. She was a tough woman. We really appreciate this real estate.”

The McLaren’s operation includes a total of 300 owned acres at Crooked Creek. An additional 250 acres is owned just a stone’s throw from I-44 on Thornton Road. Bill’s great uncle, John Howe, originally owned it. Bill says his great uncle John, with only a fourth grade education, was a horticulturist who taught botany lab at his farm

through St. Louis University. There, he grafted trees and planted more than 450 varieties of daffodils on the land that is now home to Haue Valley Weddings and Events.

“We enjoy the farm life,” Bill explains. “I tell people I am an urban rat.” Living not far from the St. Louis County line, the McLarens are 40 minutes from the Gateway Arch and Busch Stadium.

“We have to learn how to exist in our environment.”

FROM CONCEPTION TO CONSUMPTION The McLarens have had an interest in direct product marketing for nearly 20 years. Their early days found them among the first in the nation trying to sell premium pork to consumers. Bill says they traveled to Washington D.C. in an attempt to get a label to market their product.

“That was a difficult process,” he explains. “Direct marketing was not anything like what it is right now.

Some of the common sense things you would say (about your product), you can’t.”

Thus, Bill says it has been a learning process along the way.

Today, the McLarens maintain a 120-head commercial cowherd and each year market about 70 head of steers as freezer beef direct to consumers and restaurants in the St. Louis area under the name Crooked Creek Beef.

“We’re trying to breed a premium product,” he explains.

“Our tagline is ‘from conception to consumption.’”

The McLarens raise their own replacement females and purchase only registered bulls, although they do utilize timed artificial insemination technology.

“From the day that calf is conceived until the day it is consumed, we want to be managing it,” Bill notes. “We want to be looking at the end product.”

Their cowherd is about 75-80 percent Angus-based, and Bill is a strong believer in crossbreeding systems. Over the years, Angus and Hereford herd sires have been HEARTBEAT | SUMMER 2014

7

Top: Originally 120 acres, Bill McLaren’s grandfather passed away on the farm during the Great Depression, leaving his wife to finish building the family home and raise four children. Today’s operation totals about 300 acres and the McLarens live in the same house his grandparents built.

Bottom: The McLarens share a special love for the cattle on their family farm.

They market about 70 steers each year as freezer beef to consumers and restaurants in the St. Louis area. Their cowherd is 75-80 percent Angus-based with crossbreeding using registered bulls an integral part of their operation.

used, and the McLarens are also experimenting with the Braunvieh breed.

“I lose my ability to control the crossbreeding if we use a composite bull,” Bill maintains.

Their cattle are not “grain-fed” per se, according to Bill. Feeding less than 8 percent of the ration as rolled corn, he notes it is critical not to change the pH of the rumen. “We want to keep the rumen cellulose based.” Thus, the cattle consume a ration comprised of soy hulls, wheat mids, cottonseed hulls, Dakota Gold and corn gluten.

“We feed a ration that’s basically got all of the starch and sugar pulled out of it,” Bill explains.

Steers are processed at 12 to 14 months of age, cut up and individually packaged for sale.

Knowing how to price their product is the real challenge, Bill says. “We’re trying to stay at a premium ahead of 8

HEARTBEAT | SUMMER 2014

the fed cattle market, anticipating what it’s going to be six months from now.” He adds that pricing is especially difficult with today’s market and ground beef at all-time highs.

“We don’t want to do all of this work and not get a return on our time and labor,” he notes.

Crooked Creek Beef is dryaged, according to Bill, giving the consumer a different experience.

“You won’t open up a package of our meat and have moisture flow out of it like it does when it’s aged in cryovac.” The product is naturally tenderized to enhance the nutty beef flavor and dry aged a minimum of 18 days.

“We’re selling the sizzle,” Bill adds.

Currently, Bill says the market on ground beef is somewhat artificial because of the number of cull cows that have been sent to market as a result of drought. “If we start saving back heifers as a nation, our biggest problem is going to be running our

customers off and never getting them back. We will have priced ourselves out of the market.”

The McLarens are careful with bull selection, noting they won’t buy a bull that doesn’t have expected progeny differences (EPDs), or hasn’t been properly tested and indexed.

Although they have typically selected for growth and ribeye, Bill maintains they don’t want to chase a trend. “We want a balanced animal.”

He does note that the IMF (intramuscular fat) EPD is becoming extremely important in their beef business. “As an industry, we need to remember there is an end-consumer – and that consumer drives the price of my calves.”

Last year, the McLarens participated in the Missouri Steer Feedout. The educational program, sponsored by MU Extension, is designed to help cattlemen evaluate the genetics and management of their calves as they influence feedlot performance and carcass characteristics. Three McLaren steers ranked in the top 10 out of 60 entries, quite a feat in their first year of entry.

“We have to measure,” Bill says.

“If you don’t measure, you don’t know what kind of bull you need to buy. You don’t know what your endproduct is.”

DIVERSITY IS THE KEY When oldest daughter Kristin was married in an old stone church and held her reception at the McLaren’s

farm, it seemed only natural that youngest daughter Kesha would follow suit—except Kesha hoped for a reception in the barn atop the hill at their Haue Valley farm.

“But, I wasn’t willing to pour concrete in the old stone barn to use one time,” Bill explains.

Construction was launched on the barn the week of Christmas in 2012. And, Kesha’s wedding was April 27, 2013. “We built it in four months, mostly on weekends with friends,” Bill explains of the renovation. “I’m very lucky. I have great people who work with me.”

The McLaren operation is centered on two century farms near Pacific, Mo. —Crooked Creek, the main focus of their freezer beef enterprise, and Haue Valley, home to their barn wedding venue.

HEARTBEAT | SUMMER 2014

9

FCS Financial’s Carol Meyer works with Bill McLaren outside the Haue Valley barn on the operation’s goals and needs. She says because of their diversity, the McLarens could be used as a model for younger operators just starting out.

The McLarens even built a sawmill in the midst of the barn renovation. Its purpose was to saw the red cedar that would be used as lumber in the freshly renovated barn.

Bill was still in his overalls completing the finishing touches of the barn the morning of Kesha’s wedding. He recalls a young woman who pulled up in her BMW asking if weddings were ever held in the barn. The rest is history—well sort of.

Additional renovations to get the facility up to public code took place following Kesha’s nuptials.

The McLarens booked four weddings in the fall of 2013, and the venue already has just one date

available for the rest of 2014. Only two Saturdays are open in 2015.

“I didn’t realize how much people wanted to get married in a barn,” Linda chimes in.

“We believe this is agritourism,” Bill explains. “We are selling an experience.”

Linda admits she doesn’t have much to do with the wedding venue.

Kristin, who studied marketing in college, shares her vision for the property, which also now includes a small vineyard. Kristin lives with her husband and new son in Fair Grove, Mo., and provides social media, website and other marketing support for the farm’s businesses.

“We want to be relevant, not a flash in the pan,” Bill explains of

their wedding venue. “Right now barn weddings are the rage. But, if they don’t stay the rage, we want to be able to compete at that next level.”

Looking to the future, Linda maintains there is room for growth at their Haue Valley farm.

“Both of us have a passion for agriculture,” she says. “Knowing that agriculture is beyond the farm, I think there’s room for a corporate daytime venue. There is potential for something there beyond just weekend weddings.”

Haue Valley Weddings and Events venue is open air and hosts weddings about five and a half months out of the year, Bill says.

Plans are already underway to enclose the facility, “but with class,” he says. “We want our competitors to have to run really fast to keep up.

We want to be the leader.”

IN THEIR ROOTS Although relatively new customers to FCS Financial, the relationship is rich between the McLaren’s heritage and the ag lender.

Linda’s father was on the board of FCS Financial’s predecessor, Production Credit Association (PCA). Additionally, Bill had secured a loan through PCA when he lived in the Sedalia area and began raising hogs.

“Agriculture is their specialty,” Bill states. “When you need shoulder surgery, you don’t go see a podiatrist.”

With real estate and operating loans through FCS Financial, the

McLarens work with Carol Meyer on their operation’s goals and needs.

“As a loan officer, it’s important for me to know what their goals are,” Meyer says. “They have goals, but they have realistic goals.”

Because of their diversity, she says the McLarens could be used as a model for younger operators just starting out.

WHERE THE FARM MEETS THE CITY Whether selling beef directly to consumers or hosting a wedding in their barn, the McLarens maintain that they are selling an experience.

“It’s really easy to go to the sale barn and talk cows to someone,” Bill says. “It’s a little bit harder to go to someone you don’t know, who doesn’t understand a cow and talk to them and win them over. Where we live, I think that is part of what we have to do to help the industry as a whole.”

Bill and Linda believe it’s important to stand up and beat agriculture’s drum. The U.S. has a safe food product, they maintain.

“You have to be an evangelist,” Bill touts. “You have to be willing to go out and talk to people.”

The husband and wife team bear the advocacy cross in their daily lives. They’ve been involved in the local Chamber of Commerce, serving on the board of directors and have served on the tourism board.

Bill is on the Franklin County Planning and Zoning Board. He also chairs the beef committee

for Missouri Farm Bureau, is on the national beef committee for American Farm Bureau and serves on the Franklin County Farm Bureau board.

“I think if you’ve been blessed, you need to participate,” he says.

The McLarens realize consumers likely won’t educate themselves. That said, they maintain Missouri Farmer’s Care is one of the greatest things that’s happened in Missouri agriculture. “The soybean farmer realizes he needs the hog farmer,” Bill explains. “The corn farmer realizes he needs the cattle farmer. They all need each other.

They all need to work together and agribusiness needs everybody.”

Whether they are giving hay rides to children that live in the

suburban development next to their wedding venue or harvesting hay off of 10-acre parcels of land in the area, the McLarens strive to be good neighbors, working day in and day out to link producer with consumer.

And, with less than one percent of the U.S. population involved in agriculture, the McLarens realize the value in telling their story.

“We’ve got to explain to people what we do as agriculturalists so they will help us and help allow us to do what we do,” Bill explains.

Passion for agriculture beams through their words. “It’s really important to try and preserve agriculture,” Bill maintains. “We have to stand up and tell our story.”

Bill McLaren built a sawmill during the Haue Valley barn renovation in order to saw red cedar off their farm that would be used for the job. The Haue Valley farm now also includes a small vineyard.

HEARTBEAT | SUMMER 2014

11

12

HEARTBEAT | SUMMER 2014

YOUTH IN AG

Through its scholarship program, nearly 360 children or grandchildren of FCS Financial’s customers have received $1,000 scholarships in the past 11 years. We are proud to recognize and congratulate this year’s recipients. We hope they continue to find success in their education and future careers. The application will be available at www.myfcsfinancial.com in September and due March 1, 2015.

Amy Behring, Hunnewell, plans to attend HannibalLaGrange University to study elementary education.

Jillian Bertz, Mayview, plans to attend Missouri State University to study agricultural education.

Rachael Bonacker, Cedar Hill, plans to attend University of MissouriColumbia to study veterinary medicine for large animals.

Michael Carpenter, Hardin, plans to attend University of MissouriColumbia to study agricultural systems management.

Mikayla Engeman, Montrose, plans to attend Northwest Missouri State University for a dual degree in ag business and agricultural education.

Ethan Fordyce, Bethany, plans to attend University of MissouriColumbia to study agricultural systems management.

HEARTBEAT | SUMMER 2014

13

14

HEARTBEAT | SUMMER 2014

Tyler Gerke, Smithton, plans to attend State Fair Community College to study agriculture with emphasis in animal sciences.

Erin Gerlemann, Hermann, plans to attend Missouri University of Science and Technology to study mechanical engineering.

Megan Graessle, Meta, plans to attend University of MissouriColumbia to study animal sciences.

Madeline Grant, Columbia, plans to attend University of Missouri-Columbia to study animal sciences.

Erin Greeley, Hopkins, plans to attend University of MissouriColumbia to study animal sciences.

Jack Harris, Mountain Grove, plans to attend University of MissouriColumbia to study veterinary medicine.

Heidi Hegeman, Cosby, plans to attend University of MissouriColumbia to study nursing.

Emilee Kay, Fredericktown, plans to attend Missouri State University to study agricultural communications.

Madison Kliethermes, Bunceton, plans to attend University of Missouri-Columbia to study agribusiness management.

Sara Laaker, St. Louis, plans to attend Saint Louis University to study nursing.

Jaime Luke, Stanberry, plans to attend University of MissouriColumbia to study agricultural economics.

Carson Luther, Lawson, plans to attend University of MissouriColumbia to study agricultural economics and agricultural systems management.

Derek Martin, Verona, plans to attend University of Arkansas to study accounting.

Charles Raasch, Liberty, plans to attend University of MissouriColumbia to study agricultural economics.

Karlee Renkoski, Everton, plans to attend University of MissouriColumbia to study journalism.

Emmie Robertson, Lamar, plans to attend Pittsburg State University to study elementary education.

HEARTBEAT | SUMMER 2014

15

16

HEARTBEAT | SUMMER 2014

Breilly Roy, Trenton, plans to attend Central Methodist University to study marine biology and aquaculture.

Josh Sanders, Glasgow, plans to attend Linn State Technical College to study heavy equipment operations.

Chad Schneider, Warrenton, plans to attend University of Missouri-Columbia to study agricultural business management.

Austin Sims, Sibley, plans to attend University of Missouri-Columbia to study agricultural systems management.

Victoria Starnes, Lebanon, plans to attend Missouri State University. Her major is undecided at this time.

Tanner Sublette, Hannibal, plans to attend Maryville University or Southwest Baptist University to study physical therapy.

Chance Wait, Moundville, plans to attend Crowder College to study agricultural education.

Spencer Wheeler, Hardin, plans to attend Northwest Missouri State University to study agronomy.

Shelby Wilson, Seneca, plans to attend College of the Ozarks to study nursing.

Not Pictured: Hannah Bartley, Fulton, plans to attend either College of the Ozarks or University of MissouriColumbia to study horticulture and plant sciences.

Hannah Campbell, Gower, plans to attend North Central Missouri College to study agriculture and natural resources. Lindsey Gastler, Martinsburg, plans to attend University of Missouri-Columbia to study general agriculture. Morgan Walkup, Gower, plans to attend University of Missouri-Columbia to study ag journalism.

FARMINGTON GETS A MAKEOVER. Primary Contracting recently finished remodeling the FCS Financial office in Farmington. New work spaces and copy stations were added as well as storage and updates to flooring and wall coverings. A few finishing touches remain to be completed but be sure to stop by to see the new space when you are in the area.

Below are before and after remodeling pictures of the main lobby. A special thank you goes to the Farmington FFA Chapter who helped move boxes and furniture before and after construction.

RISK MANAGEMENT

TIME AND MONEY WITH ACREAGE Save REPORTING

DATES TO REMEMBER

10

Accurate reporting is required by Federal Crop Insurance Corporation (FCIC) rules and severe penalties are implemented for misreported liability. The liability is determined by the acreage shown in your report. Multi-Peril Crop Insurance (MPCI) reporting needs to match your Farm Service Agency (FSA) reporting for all crops on your FSA 578’s or producer printout.

tips to help you report correctly: 1. An MPCI policy requires you to report all acreage of crops, both insurable and uninsurable in which you have a share. This also includes prevented and late planted acreages. Zero planted acreage must also be reported.

2. Additional acreage or added land must be reported with FSA farm numbers, legal description and crop shares.

Please contact your agent prior to July 15 if you have crops planted on land (other than CRP land released in the past two years) that has not been cropped the last three years. New breaking written agreements must be completed and submitted for consideration of approval no later than the July 15 acreage reporting date.

3. An acreage report must be filed for every policy even if you have no share in the crops for 2014.

4. Providing the date of initial planting for each acreage is required. If any acreage was planted after the final plant date these acres need to be reported separately due to the late plant reduction in guarantee.

5. Prevented planting (PP) acreages need to be shown on the report as PP even though you may have already reported as a claim.

6. Ownership share should always be double checked for each unit to make sure the preprinted share information is still correct for all units and you have noted any changes.

7. Remember to report to FSA as the same operating entity/individual as the one used for your MPCI crop policy.

If not, you may not have coverage.

8. All acreage reports need to be completed, signed, dated and returned to your agent prior to or no later than July 15. The report needs to be signed by the named insured or the authorized person for the policy or entity.

9. Always contact your agent if you have questions.

10. Always review your schedule of insurance immediately after you receive it. Sometimes corrections can be made or requested if an error is determined.

Note: Pending claims cannot be paid until your acreage report is completed and processed.

July 15 Acreage reports due for all spring planted crops. Reports must be completed, signed and received by your agent by this date.

August 15 Premiums/fees due for spring crops will be billed.

September 30 Sales closing date for fall wheat.

Last day to make any changes to an existing MPCI policy for your 2015

crop policy. All written agreements on crops need to be completed prior to this date for submission to RMA.

November 15

October 1

December 10

Premiums/fees due on spring crops.

Insurance coverage ends on spring crops.

October 31/November 15 Final plant date for wheat. (See your agent for details.)

November 14 Final date to report 2014 wheat production.

Sales closing date for PRF (Rainfall Index).

December 15 Final acreage reporting date for wheat and barley.

LIFE IS SIMPLE

We are pleased to offer Jerry Crownover’s “Life is Simple” column. Jerry is a graduate of the University of Missouri. He and his wife, Judy, own and operate a ranch west of Springfield and are FCS Financial members.

We hope you enjoy Jerry’s Ozark humor and wisdom.

“Life is Simple” Copyright 2013, Jerry Crownover

have to spend any of his own money

to be the one that would need to

on the trip…and he is always ready

offer to pay for lunch. He did, but

to go, since he retired from his own

only after reminding me that he had

business a few years back. He still

now paid for meals twice in a row. I

runs a few cows and spends most

smiled and thanked him.

of his days keeping his farm in a

A couple of weeks later, I invited

constant condition of obsessive,

him to go with me to another cow

immaculate neatness.

sale at the same location that got

Because I enjoy his company and

this all started. Before agreeing to go

find I can still learn a lot from the

along this time, he asked who would

old man, I invited him to go with

be paying for supper. I agreed that it

me on a cow-buying trip last fall.

was my turn to spring for the food.

He was eager to ride along and we

Once we had looked over the

arrived at the sale barn a couple of

cattle, we headed for the café. After

hours before sale time to look over

enjoying the meal, the waitress

the offerings and visit with the

brought the ticket and I quickly

consignors. Since the auction has a

grabbed it and put it by my plate.

nice café, I asked him if he wanted

Don smiled and stated, “I’ll get the

to have a quick supper before the

tip.”

sale began. He agreed and, as frugal

While we sat and talked, the

as he is, he amazingly grabbed the

owner of the sale barn came over

Everybody knows someone like him.

ticket from the waitress when she

and visited with us for a while.

It may be an uncle or a grandfather

brought it after our meal. Of course,

We’ve both known the owner for

or even your own father for which

the next morning at the coffee shop

many years and before he moved on

phrases such as, “he’s so tight, he

found him complaining that I had

to get the sale started, he grabbed

squeaks when he walks” or “he’s still

threatened to leave him at the sale

the meal ticket and said, “This one’s

got nine cents of the first dime he

barn if he wouldn’t pay for the meal.

on me, boys.”

ever made” are used to describe him.

After all, he did have an image to

In my case, he’s a neighbor and good

uphold.

friend that I will call ‘Don’.

Don’s jaw dropped as he stared at me and stated, “You’re the luckiest

Earlier this spring, I once again

son-of-a-gun I’ve ever been around.”

Don is at the coffee shop every

invited Don to ride along to a huge

I just smiled and asked, “You’re

morning at 7:15. To save money,

farm sale that I was attending. He

he brings his own thermos mug of

jumped at the opportunity and

coffee from home, and drink it while

we left for what would be an all-

spending about an hour visiting

day affair. By mid-morning on an

with neighbors and friends before

unseasonable warm day, I went to

starting his day. Don is always ready

the concession trailer and bought

to lend a helping hand, offer advice,

cold drinks for the both of us. At

or just ride along to check cows or

lunchtime, Don realized what I had

go for parts, as long as he doesn’t

done and it now put him in position

still getting the tip. Right?”

HEARTBEAT | SUMMER 2014

19

DOLLARS & CENTS

Controlling Your Business Thru Extreme Cycles

Dr. David Kohl energizes agricultural lenders,

producers

and

business

persons with his keen insight into the agricultural industry through extensive

travel,

research,

exposure during his career.

and He is

Professor Emeritus of Agricultural Finance

and

Small

Business

Management and Entrepreneurship at Virginia Tech, Blacksburg, VA. Dr. Kohl has traveled over 8 million miles in his professional career and conducted over 6,000 workshops and seminars for a variety of agricultural audiences.

Dr.

Kohl’s

personal

involvement with agriculture and interaction with key industry players provide a unique perspective into the future trends of the agricultural industry and economy.

20

HEARTBEAT | SUMMER 2014

The other day at a seminar, a producer had an interesting comment.

He stated that our parents and grandparents had to manage cycles in weather, economics, crops and livestock; however, today these cycles seem to be extreme. While I am not in a position to discuss global warming and climate change, there appears to be credence in the extreme cycles pertaining to economics. Both today and in the future, economic peaks and valleys will create unprecedented opportunities, but also the caveat of more opportunities for business and financial failure.

Those in the grain industry have been bestowed economic prosperity and wealth through the great commodity super cycle lasting a decade, far exceeding any previous super cycle in the past century by two and one half times in duration. Those in the livestock and feather business have had a roller coaster ride in the past decade, and now are experiencing cyclical change. Slowing growth in the emerging nations, softening of the ethanol and biofuels mandates, and a less accommodative Federal Reserve that has maintained low interest rates and value of the dollar have taken the economic bloom off grain and row crop sectors. In turn, the livestock and feather industries have been beneficiaries of reduced costs coupled with strong prices that present economic windfalls. These economic roller coaster rides for many sectors of agriculture alter management and financial strategies as one attempts to maintain control of the business.

TOP OF THE CYCLE MANAGEMENT Now is the time to be proactive for those producers who are experiencing the top half of the cycle. Have a profit plan. That is, 60 percent of your profit should be allocated toward first focusing on efficiency and then business growth. One cannot grow your way to profits! That is if you are not efficient in the first place with negative or marginal bottom line, growth will only result in larger losses.

Focus on getting the top half of your balance sheet in stellar condition by maintaining a strong working capital cushion. Working capital is derived by subtracting current liabilities from current assets. Divide this number into either revenue or expenses and seek a level of 33 percent or greater.

Farm record data finds that the top 20 percent of managers have over 50 percent, while the bottom 20 percent have less than a 15 percent working capital cushion. Working capital is your short-term equity that can be used to manage operating challenges and opportunities without disrupting normal operations. It is your shock absorber.

In the top half of the cycle, pay down accounts payable, operating lines of credit, and strengthen the relationship with your lender. Do not become complacent. Most businesses make their worst decisions in the best of times.

Failure to maintain a close eye on cost of production, marketing and risk management programs and the purchase of nonproductive assets, i.e. killer toys, are mistakes frequently made in the top part of the economic cycle.

DOWN PART OF THE CYCLE When the cycle is waning, similar to what is happening in the grain industry, it is a time to intensify management.

Know your cost of production overall, but also for specific enterprises to allocate capital, resources, and time to get the biggest bang for the buck. Shed marginal assets that are not fully utilized such as machinery, equipment, marginally productive land, and even human assets. Know your breakeven prices and link these variables to everyday dashboards of production, cost, and a risk management program.

A favorite tool we utilize on our dairy, dairy creamery, hay, and beef operations is variance analysis. That is, compare actual results to projected cash flows. Monitor positive and negative deviations and whether macro events or micro changes in management altered the results. Close monitoring with your advisory team, comprised of your lender, accountant, or consultants, can be another set of eyes to assist you in navigating through the economic white waters of the down part of the cycle.

Economic cycles can be your friend and can allow you to create your future if you are proactive. However, they can be a devastating trap if one is reactive without a plan.

This chart illustrates that 30-day Farm Credit issues remain at historically low levels through June 2014 while the gap between long-term and short-term rates decreased over the first six months of 2014. Ask your FCS Financial expert about conversion options and the advantages of locking in low, fixed rates on real estate loan or other term loans.

NEWS BRIEFS

DIRECTORS ELECTED FOR 3-YEAR TERMS

MICHAEL BRUCE

STACY HAMBELTON

SHERRY JONES

RICK REHMEIER

22

HEARTBEAT | SUMMER 2014

Through a mail ballot, the stockholders of FCS Financial elected three incumbents and a new director to the board. Michael Bruce of Nevada, Mo., Stacy Hambelton of Gainesville, Mo., Sherry Jones of Dawn, Mo., and Rick Rehmeier of Augusta, Mo., will each serve three-year terms.

Bruce’s, 64, area of representation includes Bates, Camden, Cass, Cedar, Henry, Hickory, Johnson, St. Clair, and Vernon counties. He and his wife, Connie, have three children and seven grandchildren. His farming operation consists of wheat, soybeans, corn, and lespedeza. Bruce also has a cow-calf operation. Bruce graduated from the College of the Ozarks and was a teacher and school principal until he transitioned into full-time farming in 1981. He is a also member of the Missouri Cattlemen’s Association; Vernon County Farm Bureau; and College of the Ozarks Alumni Association. He has been a customer for 39 years and a board member since 2002.

Hambelton, 56, represents Crawford, Dent, Howell, Oregon, Ozark, Phelps, Pulaski, Reynolds, Shannon, and Texas counties. He and his wife, Brenda, have four children who are all currently in college. Their farming operation consists of a cow/calf operation that uses Management Intensive Grazing. Hambelton graduated from the University of Missouri at Columbia earning a master’s degree in Ag Education. He has more than 30 years of experience working for the University of Missouri Extension as an Ag Business Specialist/County Program Director. Hambelton also serves on the Ozark County Soil and Water Board and is a member of the Missouri Agricultural Extension Professionals where he served as President, Vice President and Secretary, Missouri Farm Bureau and Gainesville Lions Club. This year marks Hambelton’s first on the FCS Financial board.

Jones, 54, represents Carroll, Chariton, Grundy, Linn, Livingston, Mercer and Sullivan counties. She and her husband, Charles, have two children. They have a commercial Angus cow-calf backgrounding and finishing operation. Additionally they grow corn, soybeans, wheat, alfalfa and hay. Jones is a graduate of Central Missouri State University with a degree in marketing and finance. She currently serves as president of Livingston County Farm Bureau and is a board member of the Missouri Agriculture and Small Business Development Authority. She was employed 22 years with Bank Midwest and served nine years on the Missouri Farm Bureau Board of Directors. She has served on the board since 2012.

Rehmeier, 57, serves Iron, Jefferson, Lincoln, Madison, Perry, St. Charles, St. Francois, St. Louis, Ste. Genevieve, and Washington counties, and the City of St. Louis. He and his wife, Benita, have two children and five grandchildren. Rehmeier is president and part owner of Rehmeier Farms, a family operation that grows corn, soybeans and wheat as well as markets 20,000 hogs annually. He is a member of DRR Farms, LLC, Parideum, School of Washington WINGS Endowment Committee, PorkPAC and an investor and advisory board member for Heritage Community Bank.

Rehmeier has been a board member since 2011.

LIVESTOCK RISK MANAGEMENT — PROTECT YOUR PROFIT FROM MARKET DROPS AND DROUGHT The University of Missouri is conducting several Livestock Risk Management educational programs across the state.

DATE Tuesday, July 22

TIME 11 a.m. - 2 p.m.

Lunch provided

LOCATION Clasbey Community Center Savannah, MO

REGISTER BY CALLING Jim Humphrey 816-324-3147

Tuesday, July 22

6 p.m. - 9 p.m.

Dinner provided

Fairgrounds Diner Nevada, MO

Mark Jenner 660-679-4167

Wednesday, August 20

5 p.m. - 9 p.m.

Dinner provided 10 a.m. - 2:30 p.m.

Lunch provided

Audrain County 4-H Center Mexico, MO FCS Financial Sedalia, MO

Mary Sobba 573-581-3231 Brent Carpenter 660-827-0591

Wednesday, September 3

The training will prepare livestock producers to manage both price and weather risk. Particular attention will be given to various insurance programs available to livestock producers. Programs available to manage price risk include Livestock Risk Protection (LRP) and Livestock Gross Margin (LGM), the Dairy Margin Protection Program.

Programs available to manage weather risk include Pasture, Range and Forage Insurance (PRF), the Livestock Forage Disaster program (LFP) and the Livestock Indemnity Program (LIP). Understanding how to use these federally subsidized programs can assist producers in minimizing the hazards inherent in livestock production.

To register for these free meetings contact your local extension specialist listed above for each location.

PARTNERS IN DOING

BEFORE

AFTER FCS Financial initiated a volunteer program for employees this year allowing each employee 8 working hours to volunteer at a qualified charity in the communities they serve. Above left, Phillip Durbin (Mexico Office) and Donna Copenhaver (Macon Office) are shown with other volunteers at the American Cancer Society’s Relay For Life in Centralia. And, yes, Donna, made those doughnuts! Above right shows the results of hard work by John Wieland (Central Office) and Tara Ashlock (Central Office) to clean a trail in southeast Missouri with the Missouri Ozark Trail Association.

HEARTBEAT | SUMMER 2014

23

SHOW-ME MARKET SHOWDOWN Online Grain Marketing Game Offered by MU Extension Th is summer MU Extension will coordinate the Show-Me Market Showdown, an educational online grain marketing simulation for farmers, ag professionals and other individuals or groups who are interested in learning about grain marketing.

The Show-Me Market Showdown offers participants a ‘hands-on’ learning experience where they can enhance their grain marketing knowledge and skills by experimenting with different grain marketing tools and strategies in a life-like market setting.

The premise of the simulation is for each participant to sell and/or hedge predetermined quantities of corn, soybeans, and wheat, utilizing real-time cash bids, futures prices, and options quotes. The game employs a website called CommodityChallenge.com to link real-time market information with players’ ability to execute virtual marketing transactions. The website monitors players’ market positions, executes their trades, and summarizes players’ virtual marketing account balances.

Players compete with one another based on the financial outcome of their sales and trades relative to other players’ marketing transactions. Although the game is competitive, the main focus of the game is for players to learn the risks and rewards of alternative marketing strategies and to learn the mechanics of various marketing tools, such as futures contracts, options on futures, and forward contracts. To this end, in addition to the game, MU Extension will offer players guidance and instruction through weekly educational e-mails and a game blog. The e-mails and blog will provide a valuable means of discussion and instruction among the game coordinators and participants.

In addition to being fun and educational, participation in the Show-Me Market Showdown is extremely flexible and risk-free. Since the game is hosted online, players can access the game whenever and wherever they have time and access to the Internet. There are no formal meeting times or locations for game participants, which makes participation easy for busy farmers and ag professionals. Furthermore, while all trades in the game utilize real market quotes and life-like brokerage execution, players have no risk of financial loss by participating in the game.

The risk-free nature of the Show-Me Market Showdown is a major advantage to learning about marketing tools and strategies through the simulation rather than in the real world where experimentation with various marketing tools and strategies poses enormous financial risk.

The Show-Me Market Showdown will run from July 14th to September 19th. Funding for this project was provided by the North Central Risk Management Education Center and the USDA National Institute of Food and Agriculture. As a result, participation in the game is completely free.

More information and instructions to register for the Show-Me Market Showdown can be found at http:// extension.missouri.edu/lafayette/ShowMeMarketShowdown.aspx or by contacting Whitney Wiegel, MU Extension Agricultural Business Specialist, at 660-584-3658 or WiegelW@missouri.edu.

HEARTBEAT | SUMMER 2014

25

LEGACY WITH FCS FINANCIAL Honoring the trust you have placed in us.

The Runde and Moyer families recently received the Legacy with FCS Financial award.

Pictured here are (front row) Teresa (Moyer) Runde, Bill & Esther Moyer, & Kevin Runde, (back row) Kenneth Runde; Aaron & Rosey Runde; Justin & Teri Runde. A donation was made in their name to the Northeast Nodaway FFA Chapter. To see more award recipients visit www.myfcsfinancial.com News and Events page.

This year, FCS Financial announced the Legacy with FCS Financial program to honor members whose families have been long-time FCS Financial and Farm Credit customers. Each customer places their trust in FCS Financial to help them finance their operations. The Legacy with FCS Financial award is a way to thank those families who have shown trust and loyalty for generations.

Recipients of this award receive a plaque, press release, certificate and donation made in their name to a local 4-H club, FFA chapter or food bank of their choice.

To be eligible, your family must have had three generations of FCS Financial or Farm Credit customers with the youngest generation being a current customer. Apply for the Legacy with FCS Financial award at www.myfcsfinancial.com and click on the How We’re Different tab.

******* Reflect * Refresh * Recharge AG SEMINAR FOR LIVESTOCK PRODUCERS FCS Financial is hosting a free Ag Seminar at the Darr Center in Springfield on August 28. This seminar will focus on the needs of livestock producers in southern Missouri.

Scott Brown, Research Professor of Agricultural Economics at the University of Missouri-Columbia, will discuss "When is the time right to Expand Your Herd?"

Richard Fordyce, Director of the Missouri Department of Agriculture, will provide an update on the State of Missouri Agriculture.

Registration begins at 5:30 p.m. followed by dinner and speakers. Register to attend the event at https://www. myfcsfinancial.com/south-missouri-ag-seminar

or

call

1-800-444-3276 to reach your local office. Pre-registration is not required but preferred. Reminder emails will be sent to all who register through the website.

The annual FCS Financial employee conference will be held from noon to noon on September 22-23. During this time our offices will be open during business hours and staffed with temporary help.

As the theme — Reflect * Refresh * Recharge — illustrates, the conference is an opportunity for employees to reconnect as one team, hear from speakers on various topics that can be incorporated into our jobs and prepare for the upcoming post-harvest business.

******* HEARTBEAT | SUMMER 2014

27

FCS FINANCIAL AWARDS COMMUNITY IMPROVEMENT GRANTS FCS Financial recognized 49 different 4-H clubs and FFA chapters with $250-$500 grants for submitting outstanding Shaping Rural Missouri grant applications. Grants were awarded to organizations with plans to complete a community improvement project in the coming months.

This is the third year FCS Financial has funded the Shaping Rural Missouri grants for 4-H clubs and FFA chapters.

“Community development in rural Missouri is very important to FCS Financial. Our member-owners and staff live in rural communities across Missouri,” said Scott Gardner, Vice President, Sales & Marketing, FCS Financial. “These grants not only strengthen our rural communities but allow our youth to work as a team to accomplish a worthy goal.”

The following 4-H clubs and FFA chapters were selected by a panel of judges to receive a Shaping Rural Missouri grant in support of implementing the respective project listed: • Bucklin & Brookfield FFA Chapters (Linn County): Landscape Fairgrounds Entrance • 6 Pillars 4-H Club (Livingston County): Landscape Litton Agri-Science Center • Northern Lights 4-H Club (Mercer County): Repair Bleachers at Shelter House • Cooper County Youth Fairgrounds (Cooper County): Butterfly Garden at Fairgrounds • Columbia FFA Chapter (Boone County): Electrical Improvements at Fairgrounds • Youth Livestock Beef 4-H Club & Youth Livestock Swine 4-H Club (Ste. Genevieve County): ADA Accessible Restrooms at Fairgrounds • Mt. Zion Country Clovers 4-H Club (Marion County): Dog Agility Equipment at Park • Louisiana FFA Chapter (Pike County): Landscape at School Courtyard • Drexel FFA Chapter (Cass County): Landscape Expansion at School • Holden FFA Chapter (Johnson County): Holden Trap Range Facelift • Leeton FFA Chapter (Johnson County): Recycling Program • Hitt 4-H Club (Lafayette County): Refurbish Corder City Park • Concordia FFA Chapter (Lafayette County): County Fair Panel Trailer 28

HEARTBEAT | SUMMER 2014

• • • • • • • • • • • • • •

• • • •

•

• • •

• • • • • • • • •

St. Thomas 4-H Club (Cole County): Recycling Program Stockmasters 4-H Club (Maries County): Vienna Community Message Board Twin City 4-H Club (Moniteau County): California Masonic Fellowship Building Restoration Fatima FFA Chapter (Osage County): Small Animal Wash Rack at Fairgrounds Stoutland FFA Chapter (Camden County): Sustainable Ag Education Garden Laclede County Barn Bums 4-H Club, Lebanon FFA Chapter & Laclede County Aggies 4-H Club (Laclede County): Swine Barn Pen Construction Fox River Clovers 4-H Club (Clark County): Midway Enhancement Project Oyster Prairie 4-H Club (Lewis County): Landscape Country Aire Retirement Estates La Plata FFA Chapter (Macon County): Renovate City Ball Field Monroe City FFA Chapter (Monroe County): Bleacher Refurbishing Eager Beavers 4-H Club (Monroe County): Landscape School Busy Busy Beavers 4-H Club (Randolph County): Sheep & Goat Pens Downing 4-H Club (Schuyler County): Build Announcers Stand at Park Azen Jolly Timers 4-H Club (Scotland County): Show Barn at Scotland County Fairgrounds South Shelby FFA Chapter (Shelby County): Concrete Shelter Area North Shelby FFA Chapter (Shelby County): Revive Recreational Area Carroll County 4-H Club (Carroll County): PA System for Fairgrounds Saline County 4-H Club (Saline County): Saline County Fair Renovation Tarkio FFA Chapter (Atchison County): Tarkio FFA Greenhouse Landscaping Opposite Page: (top) Miles Cameron, Asst. VP (far right), presents Oyster King City FFA Chapter (Gentry Prairie 4-H a grant to landscape Country Aire Retirement Estates. They will be County): Bleachers at Sports Complex planting 50 - 75 trees, installing birdhouses along the walkway and planting Gilman City FFA Chapter (Harrison flowers and a garden plot for the retirees to enjoy. (bottom) Kacie Wiederholt, County): Wash Rack at Fairgrounds Financial Services Officer (far right), presents Gillman City FFA a grant to BJ Lucky Shamrocks 4-H Club expand the existing wash rack for the local fairgrounds. Above: Jessica Hamill, (Nodaway County): Fence Guard at Financial Services Representative in Risk Management, presents Monroe City FFA with a grant to refurbish portable bleachers used at various events. The Ball Park completed project is shown in the background. See pictures of more grant Mexico FFA Chapter (Audrain recipients at www.myfcsfinancial.com News and Events page.

County): Landscape Ag Building Audrain Co R-VI FFA Chapter (Audrain County): Risers at Fairgrounds New Kids on the Block 4-H Club (Cedar County): Portable Shelving for Fairgrounds Building Nevada FFA Chapter & Vernon County 4-H Council (Vernon County): Electrical Supply to Fairgrounds 4C's 4-H Club (Cooper County): Connector Trail from Katy Trail to Park & Nursing Home Pilot Grove FFA Chapter (Cooper County): Tigers Get Growing Community Garden Andrew County 4-H Club (Andrew County): Crow’s Nest at Fairgrounds West Plains FFA Chapter (Howell County): Container Garden - Boys & Girls Club Summersville FFA Chapter (Texas County): Bleacher rail guards HEARTBEAT | SUMMER 2014

29

Nearly $44,000 disbursed INTEREST-FREE FUNDING AVAILABLE FOR 4-H AND FFA PROJECTS FCS Financial launched a new agricultural youth funding program to assist Missouri 4-H and FFA members with their agricultural projects. The agreement provides interest-free funding for qualifying projects, is available to all 4-H and FFA members in the association’s lending service area and is repayable within one year.

“Missouri is home to more than 105,000 4-H members and supports 324 FFA chapters consisting of 25,000 students,” says Scott Gardner, FCS Financial Marketing and Sales Vice President. “There is no better way to prepare these future farmers and ranchers for their career in agriculture than providing financial assistance and education at this point in their lives.”

FCS Financial requires a detailed projected cash flow as part of the application process. The goal is to emphasize the importance of accurate records, budgeting and honoring obligations to repay in order to provide the future farmer or rancher with the tools, skills and contacts to move forward into a rewarding and successful agricultural career. If approved for funding, the applicant must keep accurate records available for FCS Financial to review throughout the term of the agreement.

“As agricultural lending experts, the staff at FCS Financial is able to share their knowledge and help the next generation of Missouri’s farmers navigate the financial world,” says Gardner.

Available funding is based on FCS Financial’s capital and, in 2014, $300,000 has been reserved for the program. Funds are available for one project per year, per student. For more details or to apply, visit www.myfcsfinancial.com or contact your local FCS Financial office.

30

HEARTBEAT | SUMMER 2014

Greetings from the Board Room: I have the privilege of writing this after the results of the recent board election are tallied. We will re-organize the board with the June meeting and welcome one newly elected member. Stacy Hambelton will be replacing James Davis. James brought a credit and finance understanding that few new board members possess because of his experience in the car business. Initially he felt awkward because he didn’t consider himself first a farmer but came to realize he shared more in common with the majority of our borrowers than many of the board. Well over half of the FCS Financial membership is of a segment that is labeled as part-time farmers. We appreciate the time that James spent away from his business and his dedication and service to FCS Financial.

Stacy will certainly bring a different experience and skill set to the FCS

James Nivens, Chairman of the Board

Financial board. I think he would be one of the first to admit that he would be labeled as part of the same Missouri part-time farm segment. We look forward to him becoming a valuable and integral member of the board.

I have had an opportunity as a borrower to participate in Farm Credit elections for well over thirty years. The last several years as a board member perhaps I have had a greater, or vested interest, but I’m often puzzled by the outcome and particularly the participation. Since the creation of FCS Financial in 2002, we have had a participation of between 6% and 9.5%. Membership has grown from just over 11,000 to almost 15,000, but it would take more of a statistician than I am to find any kind of a pattern. Over that period of time, even the number of voting days has varied from 14 to 30 and I think it would be hard to find any correlation. The theory was offered to me that each year the majority of the votes are cast in the area of representation of the candidates. That may well be as one of the more common comments that I have heard, is that “I don’t know any of the candidates, so I don’t vote.” That is understandable but voting in a director election is certainly one of the simplest forms of participation in your co-op.

A few years ago, the process of cumulative voting was put in place. Typically there will be candidates for four positions on the board. Each member would have four votes to cast in any manner they choose – one for each candidate, all for one candidate, or any combination. My initial response was that it would distort the vote totals.

It may have but not in the manner that I thought. Again this year, elections hinged on just one vote. Rest assured they were counted and re-counted but that is another reason to participate by returning your ballot.

At the recent board meeting, one of the things that was brought to our attention, is the number of patronage checks that are outstanding. It is understandable that those checks just issued this spring haven’t all circled but there are almost 500 that are more than a year old. Admittedly I lose things – lately it’s been pliers – but some of these checks are fairly sizeable and at year end they received a 1099 and would have to include the patronage on their tax return. There is no fine print on a patronage check. It’s your money. Cash those checks and put those people in the FCS Financial accounting department at ease.

June meeting is re-organization, July will be mid year results, August will start the planning for 2015. Which way do grain prices go from here? How long will these cattle prices last? If you have a crystal ball that’s not foggy or completely cracked, let me know.

HEARTBEAT | SUMMER 2014

31

PRESORT STANDARD U.S. POSTAGE PAID JEFFERSON CITY, MO Permit No. 210

We put the right tools at your fingertips.

Real Estate Loans

Operating Loans

Term Loans

Find an FCS Financial office near you:

1.800.444.3276 www.myfcsfinancial.com WWW.MYFCSFINANCIAL.COM

Crop Insurance We know it takes the right tools to run a successful farm. Most of us grew up on farms or in rural communities, and many of us still live there today. These experiences give us a real understanding of agriculture and what it takes to build a farm.

Our passion for rural Missouri drives us but our experience and knowledge sets us apart from other lenders.

 Competitive rates with longer terms Flexible payment schedules to match your cash flow Experienced staff to make your financing process simple Finance options to meet your specific needs Growing Relationships. Creating Opportunities. is a trademark of FCS Financial, ACA. FCS Financial is an Equal Opportunity Provider.