FCS Financial 2012 Annual Report

inspired by you.

Agriculture Integrity Honesty Rural Living Expertise Respect Trust Stewards Experience

2012 Annual Report

integrity

FCS Financial went through a brand makeover in 2012. After a year-long process of gathering information from board members, employees and customers, the new identity is one that we feel is inspired by you our member-customers.

A new vision, mission, value statement and brand essence were developed to reflect what FCS Financial is and what our future means.

Vision To be the leading financial resource in Rural Missouri.

Mission Assist our member-customers in making sound financial decisions in reaching their full financial potential.

Value Statement Our member-customers expect our actions to be consistent with our words and our words to be consistent with our intentions.

These statements reflect the passion that we have for agriculture and our desire to serve those in the industry. We hope you agree that our new look represents you and FCS Financial. Inside this year’s annual report, you will hear from other member-customers and why they choose FCS Financial. These stories not only inspire but share what it means to be a member of the FCS Financial cooperative.

experience

passion for agriculture Learning, teaching and sharing their love of agriculture, Jered and Ashley Brown are beginning a life together on a farm near Brighton.

Both are vocational agriculture teachers —Jered at Marshfield and Ashley at Hermitage — but their own classroom is the dairy operation they run in partnership with Jered’s dad, Fred, and brother, Matt.

“There’s always something new to learn,” Jered observes. “We’re just getting started but we want to build the herd, update the facilities, get more ground into alfalfa and find ways to become more efficient.”

FCS Financial has been there to help the young couple create a beginning in agriculture with credit for cows, equipment and a home.

“FCS Financial’s experience in agriculture has been important,” Jered says. “They know how to arrange a payment schedule that fits our cash flow and I’m sure that comes from experience with a lot of different types of farming operations. Understanding what we’re trying to accomplish and the structure of our business is important to using credit as a tool to get where we want to be.”

Although Jered and Ashley plan to grow the dairy, their ag educator careers will remain a big part of their lives.

“We’re passionate about agriculture,” Ashley explains. “We love the students and we feel we’re doing something to help agriculture stay strong. Ag teachers made a difference in my life and I want to do the same for my students.”

Active in the Missouri Farm Bureau, Jered and Ashley chair Polk County’s Young Farmers and Ranchers and won the state YF&R Excellence in Agriculture Award. In addition to a trip to Hawaii where they competed with other state winners, the Browns were awarded a John Deere Gator through FCS Financial’s support of the YF&R program.

With competitive rates and the focused, customized service they receive, Jered and Ashley plan to include FCS Financial in their future plans.

“When it comes time to buy land and expand the operation, that’s where we’ll go,” Jered says.

expertise High stakes management In a good year, the deep, rich soil along the Missouri River near Franklin will produce 200-bushel per acre corn and 65-bushel per acre soybeans.

And in a bad year? For Ron Hackman, that’s when crop insurance becomes the most important management decision of the season.

“Everything I farm is in a floodplain,” the veteran farmer explains, “and most years we get along pretty well. We have a good levee and pumps — we do everything we can to keep from collecting on crop insurance. But when Mother Nature decides the river is going over, that’s all there is to it.

“With the cost of seed, fertilizer, fuel, chemicals — we just can’t afford not to have crop insurance.”

Of course too little rain can be just as damaging as too much and there’s always a chance for a hailstorm to come rumbling down the valley. With all that’s at stake, crop insurance from FCS Financial is the cornerstone of Hackman’s risk management strategy.

“Your agent is what it’s all about,” says Hackman whose crop insurance specialist is Dan Rhoades from the Columbia office. “He knows all the rules and regulations and helps me get the coverage that’s best for my operation.”

Since FCS Financial is Hackman’s lender, there is also a convenience factor, he says, but primarily the decision to source his crop insurance needs through FCS Financial comes down to expertise.

“It’s their knowledge of the coverage options available as well as their knowledge of my farming operation,” he explains. “And, it’s more than just the agent. The whole office staff is knowledgeable and very helpful.

“I’ve been with FCS Financial forever, it seems like, and I wouldn’t even think about switching to something else.”

trust

relying on solid expertise Back in 2007, Ben Bradley ordered materials for a new shop building and when the company expected payment much sooner than he’d been led to believe, he found himself between a rock and a hard place.

“I contacted FCS Financial and they told me the hard place would still be there but they could help lift the rock,” he says. “It made me really appreciate them and I’ve never worked with any other lender since.

They’ve helped me buy a farm and now I’m building a house. I depend on them.”

Bradley has even received an assist from FCS Financial in a manner that didn’t involve dollars and cents.

As a vocational agriculture teacher at Knox County High School, he tries to give his students a broad agricultural experience so he tapped into FCS Financial expertise to shine a light on the business side of farming.

“Debbie Ragsdale from the Macon office came and talked to my class about farm finance,” he explains.

“She did a great job and I think the kids got a lot out of it.”

In his farming operation, Ben and his wife, Jenny, who teaches ag at North Shelby, grow corn, soybeans and wheat near Novelty. Ben also helps his father, Dennis, on the family farm in exchange for using his equipment.

Farming is something that always has been, and always will be, part of his life, he says. “I grew up doing chores and driving the tractor with Dad. I had calves growing up and when I was in college I started farming on shares with some of the neighbors. I love teaching but I love farming, too, so I’m lucky to be able to do both.”

At school, Ben’s main focus is on shop and ag mechanics — expertise that comes in handy on the farm where he and his dad do most of the maintenance and repairs. For financial expertise, though, he turns to his friends at FCS Financial. “They take good care of me,” he concludes.

board of directors Front Row (Seated) Mark DeShon, Clarksdale James Nivens, LaRussell, Chairman Maurice Glosemeyer, Marthasville Mark S. Pierce, DeKalb, Vice Chairman Gene H. Rademacher, Bland Back Row (Standing) Dan Devlin, Edina Rick Rehmeier, Augusta James Davis, West Plains David Meneely, Chillicothe, Appointed Bruce Bjornson, Oro Valley, Ariz., Appointed Sherry Jones, Dawn Michael L. Cook, Columbia, Appointed Daniel Hulse, Hannibal Kenneth Bergmann, Walnut Grove Michael L. Bruce, Nevada

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FCS FINANCIAL ACA 1934 E MILLER ST JEFFERSON CITY MO 65101

Growing Relationships. Creating Opportunities. is a trademark of FCS Financial, ACA. Farm Cash Management is a registered trademark of AgriBank, FCB. FCS Financial is an equal opportunity provider. Š2013 FCS Financial, ACA.