HeartBeat winter 2014
Relationships are the foundation for this
family agritourism business.
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 1-800-225-6949 Chillicothe 660-646-5044 1-800-264-3276 Clinton 660-885-8164 1-866-885-8164 Columbia 573-449-5910 1-800-241-5910 Farmington 573-756-5747 1-800-276-8120 Hannibal 573-221-0273 1-800-798-0273 Harrisonville 816-884-3061 1-800-517-3348 Higginsville 660-584-7181 1-866-584-7181 Jefferson City 573-636-7131 1-800-292-7131 Joplin 417-572-0011 1-866-451-6084 Lebanon 417-588-5828 1-866-588-5828
Macon 660-395-1940 1-800-432-2156 Marshall 660-886-6897 1-800-228-6897 Maryville 660-582-6464 1-800-813-5722 Mexico 573-581-3192 1-800-314-3192 Nevada 417-667-8206 1-888-667-9681 O’Fallon 636-327-1787 1-800-379-3276 St. Joseph 816-279-2118 1-866-279-2118 Sedalia 660-827-5810 1-800-310-5810 Springfield 417-862-4158 1-866-862-4158 Union 636-583-5400 1-800-583-5480 West Plains 417-256-2298 1-866-256-2298
Publication Information CEO: David Janish Editor: 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
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HEARTBEAT | WINTER 2014
Printed with farmer-grown soybean ink on recycled paper.
Find out how Steve and Cindy Frey pioneered agritourism in Missouri. Cover photo: In July, Donovan, Kate and Eleanor Diaz joined Donovan’s parents, Steve and Cindy Frey, in the family’s business Weston Red Barn Farm. Bringing the young couple on board is helping pave the way for growth in their northwest Missouri agritourism venture.
Table of Contents Dave’s View..............................................4 Member Feature....................................6 Life is Simple........................................ 11 Youth in Ag........................................... 12 Dollars & Cents.................................... 18 Risk Management.............................. 20 News Briefs........................................... 22 Niven’s Notes........................................ 27 HEARTBEAT | WINTER 2014 3
Dave’s view
David Janish, CEO
As I write this article, we are nearing the end of 2014. If things continue down their current path, it appears that once again your Association will have a very good year with strong earnings, excellent credit quality and high customer satisfaction ratings. The Association’s performance and success is truly a reflection of the performance and success of our customers. I’m often asked when I meet with customers “How are things going at FCS Financial?” I’m always thrilled when this question is asked because it shows a true interest in their cooperative. I generally talk about the two largest segments of our loan portfolio: crops, primarily corn and soybeans, and livestock including cattle, swine, etc. I’m pleased to say that overall, these segments have held up relatively well in the current agriculture environment. The harvest in Missouri is substantially complete. Reports indicate that yields for corn and soybeans were above average to record levels for most producers. These yields 4
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in connection with other factors have resulted in some challenges including stretched handling, transportation and storage resources. Current prices are at low levels relative to recent years and much of the grain not priced earlier in the season will likely be stored and marketed after the first of the year. If crop prices continue at present lower levels without additional downward adjustment to crop input costs, projecting positive operating cash flows for crop enterprises will be a challenge in 2015. In many cases multiple years of good crop profit margins have allowed producers to realize working capital and equity gains which should help buffer the impacts of a future down cycle in crop enterprise profitability margins The late summer and early fall season has been generally favorable for pasture and forage conditions supporting our substantial portfolio of cow calf, feeder cattle producers as well as our small but stabilizing diary portfolio. The reduced feed costs associated with lower corn and soybean prices are also improving margins for swine, poultry producers which account for a material part of our portfolio. Overall, these conditions have translated into loan growth that has been somewhat moderate compared to the previous two years. Lending activity for real-estate purchases is down substantially driven by reduced land sales/purchase activities. Land price levels appear stable to moderately lower depending on quality and location. Operating commitments and balances are higher than last
year’s levels in part driven by use of operating lines for ongoing expenses. As I noted in my opening paragraph, FCS Financial once again received high marks in customer satisfaction during our annual customer satisfaction survey. Financial performance is important to our organization; however, the confidence that our member-owners have in FCS Financial is just as critical to our success. The ratings reflect the quality, commitment, and hard work of our staff in building positive and beneficial relationships with each of our customers. I understand that we have been in a very positive agriculture environment so high ratings are “easier” to achieve during these times. Our challenge if, and when, this environment materially changes is to ensure we bring a level of service and value that can weather more challenging times. Finally, as you read through this issue of HeartBeat, I encourage you to read the article on FCS Financial’s contribution to rebuilding a wing at Orrick High School and note the level of scholarships, grants, and programs that we sponsor. FCS Financial is more than an agricultural lender; we are an active and passionate member of the communities in which we do business. We strive to do our part to support agriculture and rural communities in Missouri. I hope all of you had a blessed holiday season and wish you much success in 2015!
nevada celebrates new office, location In October, FCS Financial in Nevada moved to 1925 North Osage Blvd. A grand opening on December 8 was attended by several hundred customers and friends who had the opportunity to meet the employees and tour the office. The Nevada Area Chamber of Commerce welcomed the FCS Financial team and kicked off the event with a ribbon cutting. We also appreciate the Nevada FFA Chapter who was on hand to help with decorating, serving and gift registration.
HEARTBEAT | WINTER 2014 5
member feature
Building Relationships
By Joann Pipkin
The rain couldn’t do it justice. Hints of color peek through as the drops pelt the windshield on the drive down the windy two-lane just off Interstate 29. Fall harvest in limbo, so one would assume activity of most any kind would halt this day. Perhaps after November there will be time to rest.
Nestled in the rolling countryside between Platte City
and Weston, a red barn sits high atop a hill, greeting visitors rain or shine. Umbrellas in hand, the country store at Weston Red Barn Farm bustles with activity as one by one they seek a basket of apples or a trinket from the shelf. It’s here that Steve Frey’s vision of being a farmer comes to fruition. It’s here where urban folk meet the rural way of life. It’s here where agritourism finds a niche all its own. like uncle earl’s farm
Steve Frey’s interest in agriculture was cultivated at the tender age of seven. He remembers fondly the visits he and his brother would make to Uncle Earl’s farm near Higginsville. A traditional turn of the century farm, it was stocked with milk cows, hogs and chickens. “It was really old school,” Steve remembers. Despite the fact he only visited the farm perhaps a dozen times over his childhood years, it left a lasting impression on Steve. “It was Disneyland,” he says. Although he was raised in the suburbs of Johnson County, Kansas, his family was rooted in the rural way of life. Steve’s mom was raised in Higginsville, while his dad grew up on a farm in Lexington before becoming an accountant. After college, Steve worked 14 years in procurement, partly living overseas for Saudi Arabia Airlines. During 6
HEARTBEAT | WINTER 2014
that time, he enjoyed the “farm thing” in his head, wondering how he could someday become a farmer. In about 1980, Steve purchased a little farm just across the creek from his current location. He planted Christmas trees and walnut trees, sparking his first interest in agritourism. “Almost all the Christmas trees died,” he recalls. Continuing to follow his interest, Steve met his wife Cindy and over time the duo began to think an educational farm for children would be a great venture. “We really started as an educational farm for kids,” Steve explains. “I knew I liked the setting (here), the atmosphere, the look and feel of an old, turn of the century farm.” They searched for a place to buy and Steve says they kept coming back to the northwest Missouri area because of family.
Well-known for its rich heritage, Steve thought Weston would be a great location for his agritourism adventure. “Our first school tour featured a couple of goats and a bottle calf,” Steve remembers. “We had done our research and we were good at giving facts.” In its first year, Weston Red Barn Farm brought in $5,000. It was the first money Steve had earned outside of a corporate job. “That was the best feeling I had ever had on earning money,” he says. Having just completed its 25th fall season, Weston Red Barn farm today encompasses about 200 acres with activities ranging from u-pick apples, blackberries and pumpkins to educational tours, a corn maze, a country store and wedding venue. Open from April through November, each entity moves like the spokes on a bicycle.
“(The different entities) are all revenue streams feeding into the entire Weston Red Barn Farm operation,” Steve explains, “but they all feed off one another.” room to grow
Excitement billows in Steve’s voice as he announces the addition of son Donovan Diaz and daughter-in-law Kate to the farm business. Lawyer and marketing specialist by trade, the young couple was eager to trade their corporate lifestyle, which at one time found them in Japan, for a simpler way in America’s heartland. They sought a better environment to raise their two daughters — ages 11 and nearly 1. But, bringing them on board took careful planning and preparation to make sure it would be the right thing to do for all parties involved.
Upick pumpkins, apples and blackberries encompass a portion of the activities at Steve Frey’s agritourism business between Weston and Platte City. The farm also features educational tours for school children, a corn maze, country store, and wedding venue.
Steve Frey patterned Western Red Barn Farm after his Uncle Earl’s turn of the century operation, which included a variety of farm enterprises. Initially, Weston Red Barn Farm opened its doors as an educational tour for school children. Thousands of school children from Missouri and Kansas visit the farm every year. 8 8
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In July the two made the move to Weston, joining Steve and Cindy in the operation. They hit the ground running and are settling in to newfound responsibilities. While Steve’s job is to manage all of the outdoor aspects of the farm operation, Donovan and Kate handle much of the inside tasks from payroll to social media to the wedding venue and tour communications. “Cindy is the glue that holds everyone together,” Steve credits. She’s also the chief accountant and bookkeeper. “They are going to take this operation to a new level,” Steve says of Donovan and Kate. The addition of a second wedding facility under construction with the help of Farm Credit Leasing will allow further growth in the farm business. The addition of the second site will make room for a total of about 120 weddings per year in 2016 between the two facilities. Not bad considering weddings were never really an intention. Having evolved after hosting a wedding for two teachers who had previously done a school tour at the farm, Steve says the wedding venue has blossomed. “About seven years ago, we hit a critical mass of about 35 to 40 weddings and then it just took off,” he explains. “The last three to four years, the farm has consistently hosted about 60 weddings a year. We’ll hit 70 in 2014.”
The existing wedding facility was built with all reclaimed wood. Essentially a retrofitted tobacco barn, it wasn’t constructed with weddings in mind. Windows in the barn came from the old Kansas City Stockyards. In fact, the decks and barn doors were a later addition. “Initially, it was an overhang and served as a place for school children to eat lunch during the tours,” Steve says. “I could bring Quincy the dairy cow in on rainy days for a milking demo. That way we didn’t have to cancel the tours.” The additional wedding site is what Steve calls “the premier wedding spot anywhere.” It will feature a 70x40-foot barn and a 16x60-foot lean to, and will offer a variety of wedding packages, depending on the customer’s needs. “People choose the farm for weddings because of the farm (location) and the excellent service we provide,” Steve notes. “We’ve tried to keep it non-commercial.” Managing growth is perhaps their greatest challenge, Steve says. “We don’t want it to become something that isn’t enjoyable and that we can’t keep up with. There is a point where we get so many people. We have to keep them safe. We don’t want them to be unhappy.” building relationships
Whether it’s with his employees, the customers he serves, or his business partners like FCS Financial and Farm Credit Leasing, Steve Frey is all about building relationships. “We’re in the people business,” he says, “the service business.” He continues, “To me, it’s about relationships. It’s never a one time deal.” Steve admits he didn’t know a thing about FCS Financial in the beginning. “I heard about them from one of the local farmers that had a great experience there,” Steve says. “All of my relationships are rock-solid and strong. That is critical to me. I felt like I could create that same relationship with the folks at FCS Financial.” Over the years, the Freys have worked with FCS Financial on real estate purchases, and Steve appreciates the fact the cooperative understands farming.
“It’s hard to explain my business and how it works to somebody that doesn’t understand farm stuff,” Steve realizes. “I think FCS Financial has had an extremely open mind about agritourism, how our revenue comes in. They’ve looked at it pragmatically. I really appreciate that.” According to FCS Financial’s Clint Callow, “Steve’s a businessman. He had a vision for how to make a business work.” Clint goes on to say that he knows if Steve calls him, he’s thought it over and has a plan in place. “And, he knows that this needs to be done for the big picture.” Relationships were key as well when the Freys looked to expand their operation with a second wedding venue. Somewhat ironic in how the venture transpired, literally 15 minutes before walking his daughter down the aisle at Weston Red Barn Farm, Lynn Rogers, vice
“We’re in the people business... to me, it’s about relationships.” president and senior relationship manager with Farm Credit Leasing, fostered a relationship with Steve. “(The Freys) represent a form of agritourism and are leaders in that,” Lynn says. “They combine the farm operation with the urban market. They’ve done a really good job of marrying the two together.” The leasing arm for the Farm Credit System, Lynn says Farm Credit Leasing works with anyone involved in agriculture to provide lease financing for their agricultural operations. “We try to package a lease that works best for the customer based on their tax needs and the type of business they are in,” Lynn says. “We work with the smallest producer to the very largest agribusiness.” HEARTBEAT | WINTER 2014 9
Leases can be set up on tractors, combines and other farm equipment as well as buildings and grain bins. The first part of the facility lease is the actual construction financing. Once the lease is approved, Farm Credit Leasing pays the customer-approved vendors. “We don’t pay anything until the customer approves it,” Lynn explains. The actual lease is the second part of the equation. Terms can be set up for 60 months to 10 years. And,
Donovan Diaz, Michelle Bartlett and Steve Frey visit with FCS Financial’ s Clint Callow inside Weston Red Barn Farm’s country store. Visitors can find the store open daily from April through November to purchase farm fresh apples, gifts and other trinkets.
payments can be established to meet the customer’s cash flow needs. “It gives the customer a lot of flexibility,” Lynn says. “It’s really a purchase to own. At the end of the term, the customer can decide if he wants to purchase or renew the lease.” Clint adds, “(Leasing) is a valuable tax and financial planning tool.” 10
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Seeing substantial growth in the farm leasing industry, Lynn says, “I encourage customers to look at the differences in leasing companies. Has the business been involved in agriculture for long? You want to be sure the leasing company will still be in business when the lease term is up.” niche marketing
Steve Frey believes that people want to be more in touch with where their food comes from. That itself has fueled a fire in the agritourism industry. “As time goes on, there will be a great need for what we’re doing,” Steve says. Perhaps ahead of the curve on agritourism, Steve says timing and location have been helpful in building his business. “I had an intrinsic interest in this,” he states. “We lucked out on some critical choices, and at the time we didn’t know how beneficial those were.” Years working as a purchasing agent proved fruitful in helping Steve Frey become a good salesman. “I love selling stuff,” he says. “Growing things is difficult. I love the people part of it.” Agritourism is, indeed, a people business. “I have to work hard at the growing part of the business,” Steve notes. “There’s a confidence thing about it. I hold the guys that can do it in ‘awe.’ I’m learning over time.” Still, the farmer that wanted to be has become. “The farm has given Cindy and I a lot more than we’ve given back,” Steve admits. “Travel. Learning. Relationships. It’s fun to have people around you that enjoy doing what they do.”
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 2014, Jerry Crownover
Chris and Twyla live about
The voice on the other end of
three miles south of me and they’ve
the phone conversation was pretty
been married for twenty-three
sure that he possessed those coveted,
years. Chris has always enjoyed
original decals, but he could only
tinkering with and restoring old
be sure if Chris could come up
machines, whether they be cars,
with the serial number of that 1941
trucks, or tractors. He takes great
tractor. Without hesitation, or
pride in doing the mechanical
even digging through his notes for
work the right way and, by all
the magical number, my neighbor
indications, appears to be very
stated, “Sure, I know the serial
successful with the projects he has
number. It is 116210.” As he hung
completed. For the past couple of
up the phone, Chris was ecstatic
years, he has been restoring an old,
that he had found the treasure so
1941 tractor and had finally gotten
easily, and while savoring his good
to the point where he needed to
fortune, it took my friend close
order the original decals in order to
to a minute to sense the icy stare
add the ‘finishing touch.’
coming from the kitchen.
Last week, on one of those cold
“Really?” Twyla asked.
and miserable days, when farmers
Dumbfounded,
conveniently find office work they
answered, “What?”
A person’s memory is a strange
need to catch up on, Chris sat at the
phenomenon. I, for example, can
dining room table with a notebook
off the serial number of a 1941
remember the six-digit student ID
and phone, while his wife began
tractor, but you can’t remember our
number that I was issued upon
to prepare supper in the warmth
anniversary seven out of the past
arrival to the university in 1970,
of their kitchen. “I think I’ll make
ten years?”
but can’t remember the six-letter
some calls to try and find the
password that my bank gave me to
right decals for that old tractor,”
access my account…just last week.
he
I can also remember the telephone
acknowledged as she continued
number from when we first obtained
with her cooking tasks.
that newfangled contraption back
in 1966, but have no idea what the
call got him in touch with a live,
number is for my wife’s or either of
human voice that thought he had
my son’s phones. Thankfully, they
the exact decals that were needed.
are simply programmed into my
Excited that he could be this lucky,
phone as Boss, Employee #1, and
Chris waved his hands in order to
Employee #2. I can, however, be
get his wife’s attention and then put
grateful I’m not afflicted with the
a finger to his lips, as if to request
memory problems of one of my
quietness. “You’ve got them in
neighbors
stock?” he asked.
commented.
Twyla
Chris
“From memory, you can rattle
Selective memory is the worst.
barely
Lo and behold, Chris’s first
HEARTBEAT | WINTER 2014 11
youth in ag
Where are They Now? By Joann Pipkin
Nearly $360,000 has been awarded since 2003 when FCS Financial’s board of directors implemented a program to encourage and support higher education for children or grandchildren* of FCS Financial customers. Now in its 11th year, FCS Financial’s scholarship program annually distributes up to 35 scholarships. This fall, the board of directors elected to increase the value of each scholarship to $1,500 for 2015. Previously, each scholarship was $1,000. Funds were first distributed in 2004. FCS Financial is committed to supporting the agricultural youth of Missouri. As a cooperative, this scholarship is one of the ways FCS Financial gives back to its members and supports communities. It has been five years since their high school graduation in 2009. And, here’s an inside look at what some of the 2009 recipients are doing now. Andrew Alton Having earned a degree in electrical distribution systems from Linn State Technical College, Andrew graduated in 2011 and has worked as a heavy equipment operator for Shryock Brothers Farms for two years. He recently accepted a job as an apprentice lineman with the city of Centralia where he will work on power line construction and repair. At Linn State, Andrew was one of 25 accepted into the school’s electrical distribution system’s program, which typically draws more than 100 applicants. Andrew and his wife, Sarah, were married in June 2013 and currently reside in Mexico, Missouri.
and was a member of Block and Bridle club as well as Collegiate Cattlewomen. Two internships with Land O-Lakes-Winfield Solutions in South Dakota and Minnesota found Sierra working with marketing for test plot events and alfalfa management. “I learned a tremendous amount about row crop farming, the cooperative system, raising “dairy quality” alfalfa, and I got to drive all across beautiful South Dakota,” Sierra says.
Sierra Shea Angell Blanchford Just five years after her high school career ended, Sierra is writing the next chapter —literally. Already a published author, Sierra is a freelance writer and farm wife based in De Smet, South Dakota. She earned a general agriculture degree with an emphasis in agricultural journalism from the University of Missouri-Columbia. At MU, Sierra was active in Sigma Phi Lambda, a non-greek Christian sorority, 12
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Sierra Blanchford and her husband, John, operate a grain and livestock farm in South Dakota.
She also experienced how to market for “test plot” events using different forms of advertising such as sales letters, radio and print ads and social media. As a freelance writer, Sierra blogs and manages
social media for a variety of clients. Her first book, Wild Man: A Mostly True Memoir of a Missouri Cattleman is now on the market and details the wild, mostly true, larger-than-life stories of her grandfather, Luther Angell. “Luther and the Angell family owned and operated the Columbia Livestock Auction for over 50 years. Many of Luther’s stories from CLA are included in the book,” she notes. In addition to writing, Sierra tackles recordkeeping and assists with farm management duties on the row-crop and cattle farm she shares with husband John Blanchford. Sierra and John welcomed a daughter, Joslyn Shea, in October. Future plans include growing her business, Sierra Shea Communications, and helping clients meet their social media, blogging and copywriting needs. Follow Sierra on the web at http://www.sierrashea.com.
Christmas lights,” Hannah says. Through a study abroad experience with the College of Agriculture, Food and Natural Resources, Hannah was able to learn how an earthquake in New Zealand affected its citizens, and how they are working to rebuild. “One of our visits was to a “shopping mall” of sorts that was actually shipping containers that had been renovated on the inside to create stores,” she says. Visits to sheep and wine production enterprises brought Hannah a first-hand look at two of New Zealand’s largest industries. “It was eye-opening to see the large scale production,” she notes. Currently a financial services specialist for FCS Financial’s Commercial & Agribusiness team in the Marshall, Missouri, office, Hannah and husband Jarrod Erickson are expecting their first child this month.
Lauren Geiger Hannah Sandidge Erickson An agribusiness management graduate from MU, Hannah completed her college degree in just three years. While there, she participated in Sigma Alpha, Collegiate Cattlewomen, Mizzou Swine Club and Collegiate Farm Bureau. USDA Farm Service Agency and the Missouri Pork Association hosted Hannah’s internships. Traveling abroad to Germany, Brazil and New Zealand helped Hannah learn culture and cuisine far from Missouri farmland. “The chocolate was better than can be described,” Hannah says of her time spent in Germany. While in Brazil, Hannah spent two weeks learning about agriculture, a trip sponsored by MU’s agricultural systems management department. “We primarily visited places along the coast, but hiked through a rainforest and toured coffee, sugarcane and orange farms,” she explains noting it was a great learning experience, and especially interesting to learn about how the country celebrates Christmas in the middle of the summer. “Santa Claus in Brazil wears light-weight clothing and they decorate palm trees with our traditional
Now a third year student in the MU College of Veterinary Medicine, Lauren first attended Kansas State University where she majored in animal sciences and agricultural economics. She began clinical rotations in late October. “My first summer of vet school, I stayed at the school as part of the Veterinary Research Scholars Program completing a project on passive transfer of colostrum in dairy calves,” Lauren explains. This past summer, she finished an internship with Dr. Larry Coleman through the American Association of Swine Veterinarians at the Vet Care Clinic in Broken Bow, Nebraska. While at K-State, Lauren participated in Collegiate Cattlewomen, Pre-Veterinary Club, Silvery Key Honorary Society and Collegiate 4-H. While not lacking for something to do, she also worked on campus as an undergraduate research assistant in a ruminant nutrition project and was a research laboratory assistant. Additionally, Lauren has been a bank teller at Nodaway Valley Bank, a kennel technician at Countryside Veterinary Clinic, and spends extra spare time working on the family farm. Lauren enjoyed overseas travel to Panama and HEARTBEAT | WINTER 2014 13
Colombia with the International Collegiate Agricultural Program, and journeyed to Australia with the Animal Science Study Abroad group. She also completed an internship in Kansas Senator Pat Roberts Washington, D.C., office. While still exploring her options in the field of veterinary medicine, Lauren hopes to settle somewhere in the Midwest where the family farm in northwest Missouri isn’t more than a few hours away. Originally from Mound City, Lauren is engaged to Alex Callow, a former FCS Financial scholarship recipient.
Marc Jensen A May 2012 graduate of MU, Marc earned a degree in agricultural systems management and agribusiness management. At MU, he was active in Alpha Gamma Sigma fraternity where he served as vice president. He also held membership in the agriculture economics and agriculture systems management clubs. As a field production and research intern for Monsanto, Marc worked in Illiopolis, Illinois. He also earned valuable experience interning with Agrigold Hybrids in Marshall, Missouri, and at FCS Financial. While at MU, Marc was fortunate to travel abroad in Germany and Brazil on two different trips with other students from the university’s agriculture systems management program to gain insight into Europe and South America’s diverse agricultural economy and infrastructure. As an assistant vice president for traditional and part time farmers in the St. Joseph, Missouri, office of FCS Financial, Marc began his full-time career there in January 2013. “I enjoy the opportunity to work directly with agriculture producers of all types and sizes,” he says. In addition to his career at FCS Financial, Marc helps on the family farm and enjoys time with his wife and family.
Brittany Early Kelsey A May 2013 graduate of Truman State University with a degree in agricultural science, Brittany is currently a product manager for MFA Agri Services in 14
HEARTBEAT | WINTER 2014
Kirksville where she oversees animal health products and in store feed sales. While at Truman State, Brittany was a member of Collegiate Farm Bureau, Delta Tau Alpha ag honors society and Sigma Alpha. She completed an internship with Pfizer Animal Health where she worked in animal health related tasks on hog operations. Brittany married husband Cohen Kelsey in September 2013 and the two also operate a 250-head commercial cow/calf operation. They welcomed their first son, Stockton, to the family in September.
Jarod Koenig Having earned a bachelor’s degree in business administration with an emphasis in human resource management from Southeast Missouri State University, Jarod also captured minors in Spanish and finance. Following graduation in May 2013, he worked for Cultural Exchange Network (CENET), a small, local, non-profit organization. This past June, he, along with wife Jennifer and young son, moved to St. Louis so he could attend graduate school at Concordia Lutheran Seminary. “Despite having a degree in business, I have desired to become a Lutheran Church Missouri Synod pastor for a while now,” Jarod explains. He’s enrolled in a four year Masters of Divinity program and spent the past summer and fall taking intensive prerequisite classes to learn biblical Greek and Hebrew. Still involved in his family’s agricultural business, Perryville Pumpkin Farm, Jarod manages much of the operation’s social media marketing from a distance. He also helped design and launch the farm’s website. While at SEMO, Jarod was president of the Lutheran Student Fellowship organization on campus for two years and was an officer in the International Business Club and Spanish club. He also was involved with the Missouri State 4-H Council and Missouri State 4-H Foundation.
In addition to working for CENET, Jarod completed a paid internship at the organization his last semester of college. The non-profit group has been designated by the U.S. Department of State as a J-1 Visa Sponsor. “(CENET) has sponsored thousands of students from countries all around the world to come to the United States for non-immigrant work visas in order for them to learn about American culture,” Jarod explains. “A large part of my position at CENET was to interview college students from countries all around the world via Skype.” Jarod’s future plans are to complete his master’s degree and then accept a “call” into ministry. He hopes to be able to stay in the St. Louis area to be close to family.
Eye, watched the changing of the guards in front of Buckingham Palace and went to the Tower of London.” A stop at a sheep farm where the farmer raises world award winning sheep dogs was a highlight of the journey. The group toured a potato farm and also JCB equipment factory and enjoyed a stay at Harper Adams University.
Meredith Jones Lange She wore a crown! Meredith is a past Missouri State Fair Queen and says the experience was simply awesome. “I visited every inch of the fairgrounds, congratulating participants and winners and passing out ribbons and awards,” she recalls. Meredith also represented the state after the fair, helping judge county queen contests. “I’ve been attending the Missouri State Fair ever since I can remember, but as queen, I learned so much more about everything that goes into the planning of the fair and about so many different parts of the event that I’ve never visited before.” In addition to serving Missouri State Fair Queen, Meredith studied agricultural education at MU, where she earned both bachelor’s and master’s degrees. At MU, Meredith was active in Sigma Alpha professional agriculture sorority, Ag Ed Society, Mizzou Collegiate Farm Bureau, CAFNR Steering Week Committee, CAFNR Student Council and CAFNR Student Development Board. She was named the National Outstanding New Member for Sigma Alpha and CAFNR Outstanding Freshman. Meredith took part in a study abroad experience with the Mizzou Ag Systems Management group, traveling to England. “We spent a couple of days in London, touring the city,” Meredith explains. “We rode in the London
M
e h La n g e re d i t
do i n Lo n
n.
Meredith’s study abroad experience helped pave the way for her future; on the trip she met her now husband, Dylan Lange. She currently teaches junior high and high school English and business at Southwest Livingston R-I in Ludlow, Missouri.
Derek Paradeis Derek majored in agriculture at Crowder College in Neosho. Currently, he works for Taylor Cattle Company in Reeds, Missouri, as herdsman. The operation consists of 60 head of Simmental, Limousin and Hereford cows. HEARTBEAT | WINTER 2014 15
In 2015, Derek plans to attend Mendenhall Auctioneer School in North Carolina and hopes to eventually sell purebred cattle sales. He would also like to expand his own Simmental cowherd.
Kyle Schieber Fish and chips, not cheeseburger and fries. While not exactly pertinent to tillage practices, the food remains a prominent memory of Kyle’s study abroad experience to England while in college at MU. “Eating at restaurants across (England), fish and chips was one of the main entrees that really drew our attention compared to a cheeseburger and fries in America,” Kyle explains. An MU graduate, Kyle’s journey took him to the fields of England where he learned different tillage practices and observed how much smaller the farmers there are compared to those in the U.S. The journey was part of a hands-on experience to see global agriculture made possible by MU’s agricultural systems management club. “We toured JCP equipment manufacturing plant and got to be on the assembly line as agriculture and construction equipment were assembled,” he says. A stop at a John Deere dealership brought comparisons how different equipment size is in England compared to the U.S. Touring Harper Adams University opened Kyle to learn cutting edge technology on agriculture equipment. Students there worked hands-on with engineering to bring more efficiency to farmers across the world, he says. “Interacting with (students) our age in a different country and farming background broadened our horizons on how agriculture compares around the world,” Kyle explains. A Brown and Dickinson Scholar, Kyle was selected through MU’s College of Agriculture, Food and Natural Resources. The experience exposes students to 16
HEARTBEAT | WINTER 2014
major agribusinesses in Kansas City and St. Louis by seeing the day-to-day operations first-hand. While at MU, Kyle also completed two internships with Syngenta. Those experiences opened the door to his career as he currently is a retail district sales representative for Syngenta, covering north central Missouri. He resides in Columbia.
Angela Suter Having received her bachelor’s degree in architectural studies, emphasis in interior design, from MU, Angela is currently working toward her graduate degree in architecture at the University of Kansas.
An gela Su t e r is wo rkin g towards h e r graduat e degre e i n arc hitec t u re.
While at MU, she was a member of Mizzou Student Foundation, Kappa Omicron Nu Honor Society, United States Green Builders Association and Cru, a Christian organization. She was named a Flagship Scholar while at MU.
Angela earned an internship at MU Space Planning and is currently an architect intern with Management and Pulse Design Group in Lenexa, Kansas, while pursuing her graduate degree. Additionally, she studied abroad with Nordic Architecture through KU. After completing graduate school, Angela hopes to work in the architectural field.
office of the director of the Missouri Department of Agriculture and with FCS Financial. On the president’s and academic honor roll, Kacie recorded an audio clip about her NWMSU experience that was used by the university president at the House Appropriations Committee on Education Hearing at the Capitol on Feb. 1, 2012. She earned her American FFA degree in 2010.
Sawyer Thompson Having earned degrees in psychology and criminal justice from Southwest Baptist University, Sawyer graduated cum laude in May 2013. While at SBU, he was a member of the Behavioral Science Club and completed an internship with the Howell County Sheriff’s Department. He lives in West Plains and after working in the auto industry, is taking some time off to explore his career options.
Becca White
Ashley Winfrey Currently in her second year of teaching agriculture at Northeast Vernon County School, Ashley graduated with a degree in ag education from Missouri State University in 2013. While at MSU, Ashley participated in Collegiate FFA and Collegiate Farm Bureau. She has served as a parliamentary procedure minutes judge at two National FFA Conventions. Ashley resides in Stockton.
Becca earned her bachelor’s degree in agricultural economics from the MU in 2012 and a master’s degree in agricultural leadership, emphasis in ag economics, in December 2013. While at MU, she participated in Mizzou Independent Aggies and was on the CAFNR Development Board. She completed internships with Missouri Farm Service Agency, Rep. Tom Shively, and the Missouri Corn Growers Association, and was a teaching assistant in an ag marketing class. Becca works for the Farm Service Agency as a County Operations Trainee.
Kacie Wright Wiederholt An agricultural business graduate from Northwest Missouri State University, Kacie currently is a loan officer with FCS Financial in the Maryville office. While at NWMSU, Kacie was an agriculture ambassador for the university, helping promote its agriculture department and school farm. She also was active with Collegiate Farm Bureau. Kacie gained work experience while interning as a program technician at the Morgan County Farm Service Agency, in the
Kacie and Ryan Wiederholt were married September 28, 2013, at Weathered Wisdom Barn in Preston, Mo. HEARTBEAT | WINTER 2014 17
dollars & cents
Business Planning 2015: Resilient and Agile
Dr. David Kohl energizes agricultural lenders,
producers
and
business
persons with his keen insight into the agricultural industry through extensive travel, research, and exposure during his career.
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.
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HEARTBEAT | WINTER 2014
The landscape of agricultural economics has resulted in margin flipping between the grain and livestock sectors. The grain industry, which was on an economic hot streak for the past decade is now experiencing margin compression. In contrast, the livestock industry is financially hot! Many experts are debating the duration of this portion of the cycle. Of course, those agricultural businesses that are dependent on the health of the U.S. economy are experiencing green light economic conditions with an economy in its 65th month of expansion. What is in store for 2015 as you develop your business plans and actions to position your business to be resilient and agile? The easy money has been made in the grain industry; however, topflight managers will still find a way to make a profit. The duration of the economic moderation will be dependent upon a number of strategic variables. Slowdown of the economies of emerging nations, i.e. the BRICS and KIMT nations including Brazil, Russia, India, China, and South Africa along with South Korea, Indonesia, Mexico, and Turkey, has moderated demand for many U.S. commodities. Central banks, both in the U.S. and abroad in Japan and Europe, will be critical to the grain industry because up to 40 percent of corn, soybean and other commodity prices have been impacted by central bank strategies through valuation of currency and level of interest rates. For example, the strategy in the U.S. was to decrease the value of the dollar to encourage exports and keep interest rates low. The withdrawal of stimulus and possible rise of interest rates in 2015 would suggest a stronger dollar will result, decreasing producers’ ability to export. The duration and intensity of the positive economic cycle in the livestock sector will influence grain price levels. An economically viable grain sector needs an economically viable livestock industry. Initially, the livestock industry will benefit from the high prices, but as the cycle continues, more and more of the margin will be generated through cost control as input costs decrease. Finally, the weather is still in control of agricultural economics. Keep a close watch on growing conditions in the southern hemisphere, as well as conditions in the northern hemisphere, which will impact the economic health of both the grain and livestock industries in 2015. What can one do to position a business for short and long run sustainability? Two terms most often used in athletics come to mind:
resilient and agile. Your business needs to be resilient, but on the other hand it also needs to be agile. Let’s examine the characteristics of a resilient business. A good financial record system that “talks” to the business is important. Knowing cost of production, particularly by enterprise, will be imperative in allocating capital resources to their highest and best return. Sound record systems will be necessary when selecting government and insurance programs to mitigate risk. This winter will be a game of “chicken” concerning land rents. Being armed with cost and price data can be powerful in negotiating a positive bottom line. Of course, being resilient but agile requires accumulating
working capital (that is, current assets minus current liabilities). If you anticipate a negative margin, it is important to know your burn rate on working capital. It is calculated by dividing working capital by the projected negative cash flow margin. If the burn rate is less than one year, the business will lack resiliency; however, if the burn rate is approximately three years or more, it may have the agility to capitalize on opportunities as they appear, particularly in the down cycle. A business that is resilient will have modest family living withdrawals. With $50,000 to $80,000 differences between the high and low third of farm family living costs, controlling the
personal budget will be critical. To be agile, your business plan needs written business, family, and personal goals that are communicated to stakeholders and partners. These goals will assist you in maintaining focus regardless of where you are in the business cycle. Finally, use a team of advisors to maintain agility, including your lender, crop or livestock consultant, and industry professionals. This team can offer valuable insight and feedback as one navigates through these economic times with a surprise around every corner. The keys to a sustainable business are to be resilient in management and financial practices to handle adversity, but then to also be agile to capitalize on opportunities.
This chart illustrates that 30-day Farm Credit issues remain at historically low levels through November 2014 while the gap between long-term and short-term rates remains relatively flat. Read our three part series on interest rates at www. myfcsfinancial.com under the News & Events link to learn more including what establishes the interest rate and what producers can do to manage their risk. Then talk to your FCS Financial expert about available options. 8.00
30-Day vs 15-Year Farm Credit Bond 15-Year Farm Credit
7.00
30-Day Farm Credit Fed Funds Target
6.00
All-in cost
5.00
4.00
3.00
2.00
1.00
0.00
Date
HEARTBEAT | WINTER 2014 19
risk management
Farm Policy changes for farm Dates to and crop producers Remember Inlandowners early August, landowners reporting to Information regarding various tools March 15 Last day to sign up for MPCI crop insurance coverage on 2015 Spring crops March 15 Last day to make any changes to an existing MPCI policy for your 2015 Spring crop policy. March 15 All written agreements on crops need to be completed prior to this date for submission to RMA. March 31 Last day to sign up for the 2014 Farm Bill April 29 Last date to turn in production reports for 2014 Spring crops July 1 Premiums/fees due for fall planted crops 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 on spring crops will be billed.
20
HEARTBEAT | WINTER 2014
FSA (Farm Service Agency) should have received a letter regarding Crop Base Acres, CC yields, and crop acres reported on each FSA Farm Number for each crop and county. This communication from FSA allowed the owner to review all FSA paperwork relating to the Agricultural Act of 2014 (2014 Farm Bill). Farm owners have the option of working with FSA to reallocate base acres and/or updating CC yields. To update your yields, FSA will be working with you to fill out the FSA form CCC-859 Price Loss Coverage (PLC) Yield Worksheet. This worksheet requests crop production per acre by FSA Farm Number. The FSA form CCC-859 will require the use of actual yields and not adjusted APH yields. Owners choosing to update their yields and/ or reallocate bases (one–time decision) must do so prior to February 27, 2015. Also as part of the 2014 Farm Bill, producers will have the option of choosing ARC-CO, ARC-IC or PLC as part of the new farm programs.
and calculators that may be helpful with Farm Bill decisions can be referenced at the following websites: • http://www.fapri.missouri. edu/2014farmbill • https://afpc.tamu.edu/models/ decisionaid.php • http://fsa.usapas.com/ • http://farmbilltoolbox.farmdoc.illinois. edu/ • http://www.fsa.usda.gov/FSA/webapp?ar ea=home&subject=arpl&topic=landing Your local FSA office and MU Extension Agribusiness Specialists are available to answer questions and have been hosting meetings across the state discussing the Farm Bill (see page 22 for additional meeting information). Meetings are planned into January and February in some areas. Please log on to the FCS Financial website at www. myfcsfinancial.com for a list of meetings or check with your local FSA or MU Extension office.
Farm Bill adds Crop insurance option SCO What is Supplemental Coverage Option (SCO)? • SCO provides area-based coverage on top of a regular MPCI individual policy. • It is an endorsement to the following plans and must be purchased with an underlying policy. — Yield Protection ( YP) — Revenue Protection ( RP): Revenue Protection with the Harvest Price Exclusion (RP-HPE) • The endorsement is available in select counties for corn, soybeans, wheat, sorghum, cotton and rice starting with the 2015 crop year. • SCO crop insurance coverage can only be purchased on the farms where the PLC farm program option has been chosen. • You can find more information on SCO on many websites or from your crop agent when renewing your 2015 spring crop policy.
We’ll minimize your risk. You can rest easy.
Crop Insurance The Crop Insurance Team at FCS Financial is ready to help you manage your business risk with the expertise you need to make sound decisions. We’ll help you find the products that protect your operation and give you peace of mind.
aMulti-Peril Crop Insurance MPCI Find an FCS Financial office near you:
1.800.444.3276 www.myfcsfinancial.com
Growing Relationships. Creating Opportunities. is a trademark of FCS Financial, ACA. Equal Opportunity Provider
• NEW! Supplemental Coverage Option (SCO)
aLivestock Insurance MPCI-LRP aPasture Rangeland Forage PRF aCrop Hail Insurance
MPCI-LGM
HEARTBEAT | WINTER 2014 21
news briefs
IMPORTANT NOTICE TO SHAREHOLDERS As required by and in accordance with Farm Credit Administration regulations, FCS Financial will publish a copy of its 2014 Annual Report on our website (myfcsfinancial.com) by March 15, 2015, and a printed copy will be mailed by March 31, 2015, to all shareholders of record as of December 31, 2014. A new office in Harrisonville is under construction. Recently, the steel frame was completed with trusses being set. The building is expected to be finished by early summer. Watch HeartBeat and our website for updates.
Join us March 18 for Customer Appreciation Day Each FCS Financial office will host a Customer Appreciation Day from 10 a.m. to 6 p.m. on March 18 in conjunction with National Ag Day. Stop by for refreshments and to visit with your FCS Financial team members.
96.9% satisfaction 22
HEARTBEAT | WINTER 2014
American Farmer Program Featuring FCS Financial, other Farm Credit Entities An episode of American Farmer featuring FCS Financial, other Farm Credit Associations and AgriBank debuted Oct. 28 on RFD-TV. This episode of American Farmer highlighted key challenges and opportunities in today's agricultural marketplace as well as educated audiences on the cost-effective and innovative financial products and services FCS Financial provides to farmers, ranchers, and agribusinesses to help them manage risk and succeed financially. FCS Financial Board Member Sherry Jones of Dawn, Mo., and Vice President Debbie Ragsdale of Macon, Mo., participated in the filming. “FCS Financial is a cooperative that provides loan products and risk management services for rural Missourians through a team of experts who not only understand finance but Missouri agriculture,” says David Janish, CEO, FCS Financial. “We are dedicated to growing relationships with our members and creating opportunities that will help them prosper today and in the future.” "We encourage farmers, ranchers and others to watch the program and learn about the solutions Farm Credit offers to help them succeed in the increasingly volatile global economy," says Bill York, CEO, AgriBank. "Together with our affiliated Farm Credit Associations, we're thrilled with this opportunity to participate in the American Farmer series and share 100 years of Farm Credit expertise with rural America." The program will be rebroadcast. Dates will be announced on RFD-TV, RURAL-TV and FamilyNet. The program is also posted on YouTube. A link is available on our website at https://www.myfcsfinancial.com/2014/10/ american-farmer-program-featuring-fcs-financial/
Thank you for your Business!
FCS Financial recently conducted our annual customer satisfaction survey. We are pleased to report a record high score with 96.9% satisfaction. We appreciate the trust you put in us to provide you with exceptional customer service.
informational meetings
2014 Farm Bill
Changes coming in the 2014 Farm Bill will require crop producers to make important decisions for their farms. The Bill eliminates direct and countercyclical payment programs and the Average Crop Revenue Enhancement Program (ACRE) replacing them with Price Loss Coverage (PLC) and Agricultural Risk Coverage (ARC). The decision to choose PLC or ARC should not be taken for granted. This decision effects how the producer will receive government payments through 2018 or the end of the current Farm Bill. “Understanding the changes and how your farm operation is impacted are key in the decision-making process for farmers,” says David Janish, CEO, FCS Financial. “The Extension and Farm Service Agency are providing informational meetings that will enable producers to begin the evaluation process for risk management planning.” Producers should plan on attending one of the seminars to learn more about the Farm Bill and options available. Below are meetings scheduled for January at the time we went to print. Meetings are being added frequently. Check the FSA website (www.fsa.usda.gov) or our website at www.myfcsfinancial.com often for updates regarding PLC and ARC as well as notice of additional meetings.
DATE
TIME
LOCATION
January 6
9 a.m.
Flanders Hall, 107 W. Broadway, Excelsior Springs, Mo. To register, call 816-407-3490 by Jan. 5
January 6
10 a.m.
Perry County Extension, Perryville, Mo.
January 6
1 p.m. - 6 p.m.
Cole County Extension Office, 2436 Tanner Bridge Road Jefferson City, Mo.
January 6
6:30 p.m.
Montgomery Co. R-2 High School Cafeteria, 394 N Highway 19 Montgomery City, Mo.
January 7
5 p.m.
4-H Building, 615 N 22nd St., Unionville, Mo.
January 8
10 a.m.
Perry County Extension, Perryville, Mo
January 8
5:30 p.m.
Schuyler County Nutrition Site, 200 N Marion St., Lancaster, Mo.
January 13
2 p.m.
Perry County Extension, Perryville, Mo.
January 14
5:30 p.m.
Schuyler County Nutrition Site, 200 N Marion St., Lancaster, Mo.
January 15
TBD - check website for updates or call Clark County FSA office at 660-7273364
Clark County Producer Meeting on ARC/PLC, CARE Building Kahoka, Mo.
January 15
1 p.m.
Perry County Extension, Perryville, Mo
January 22
TBD - check website for updates or call Scotland County FSA office at (660)4658517
Scotland County Farm Bill Meeting Fitness Center Community Room Memphis, Mo.
January 29
1 p.m.
Family Center, 2601 Cantrell Road, Harrisonville, Mo.
HEARTBEAT | WINTER 2014 23
scholarship Each year, FCS Financial honors the dedicated young men and women continuing their studies. We award up to thirty-five $1,500 scholarships to Missouri high school seniors whose parents or grandparents are current FCS Financial customers. Over the past 10 years, nearly $360,000 has been provided to help our next generation with their education. The 2015 application is due March 1, 2015.* Ethan received assistance through FCS Financial’s Ag Youth Funding program for his 4-H swine project. Visit https://www.myfcsfinancial.com/loans/ag-youthprogram/ to see a video of Ethan and his sister Abby The Shaping Rural Missouri grant program offered by FCS Financial provides local 4-H and FFA organizations $500 grants to implement projects that will working with their pigs.
shaping rural missouri grant benefit their rural communities. Funds are awarded to assist club or chapter members in bringing positive change by establishing projects that make their local communities better places to live. Applications are due April 1, 2015.†
ag youth funding interest free for projects
4-h
and ffa
FCS Financial’s ag youth funding program assists Missouri 4-H and FFA members with their agricultural projects by providing interestfree funding for qualifying projects. It is available to all 4-H and FFA members in the association’s lending service area. 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. Funds are available for one project per year, per student and repayable within one year.‡
learn more For more information, visit myfcsfinancial.com or contact your local office. Apply online for the scholarship and Shaping Rural Missouri grant. Complete the agreement for Ag Youth Funding online and submit it with a detailed projected cash flow and photo authorization to your nearest FCS Financial office. Scholarship applicants must meet all qualifications in application to be eligible Grant applicants must be a 4-H club or FFA chapter located in one of the 102 Missouri counties served by FCS Financial. Ag Youth Funding applicants must be a 4-H club or FFA chapter located in one of the 102 Missouri counties served by FCS Financial. Agreement must also be signed by a parent or adult club supervisor.
*
† ‡
Howell County 4-H received a Shaping Rural Missouri grant from FCS Financial to plant an orchard consisting of fruit trees and Missouri native nut trees at Don Warden Park. 24
HEARTBEAT | WINTER 2014
C
New Program for YBS Farmers Coming in 2015
Onnect
Young, Beginning, & Small (YBS) Farmers will have the opportunity to participate in FCS Financial Connect, a new program developed for our YBS customers to assist them in finding success on the farm. The program focuses on four major areas: • Knowledge Sharing – training opportunities for YBS producers • New Credit Standards – enhanced standards recognizing challenges for the Young & Beginning farmer • Communication – use of more electronic channels for customer interaction including social media • Representation – addition of a Stockholder Advisory Committee specifically for YBS needs
Changes coming to Patronage checks At the December board meeting, the FCS Financial Board of Directors made a declaration that will return patronage to members for the 2014 calendar year. Since 2006, FCS Financial has returned more than $38 in patronage payments to our member-owners. New this year, the 2014 patronage check will be void if not cashed by August 1, 2015. After August 1, FCS Financial will apply the check as a special principal payment to one of your loan balances. Please contact your local office if you have any questions. Checks will be distributed at Customer Appreciation Day on March 18 (see page 22). If you are not present, your check will be delivered or mailed.
Shedding Light on Leases Subscribe to FCS Financial’s YouTube channel to see Chad McCollough, FCS Financial loan officer, and Lynn Rogers, leasing specialist with CoBank, demystify equipment and facility leases in our new Basics of Leasing video. This video explains how an equipment as well as barn or facility lease works for a producer. In six minutes, the video provides information on obtaining a lease, how to depreciate a lease and what happens at the end of the lease While there, be sure to also watch balance sheet basics, owning and buying land and FCS Financial’s ag youth program videos.
HEARTBEAT | WINTER 2014 25
$5,000 Donated to Orrick High School After hearing recently of the need for funds from an Orrick, Mo., resident, FCS Financial donated $5,000 to Orrick High School to assist with the construction of a new wing to house the ag building and science lab. “As a community with strong farming roots, we appreciate the donation from FCS Financial,” says Aerin O’Dell, Orrick High School Superintendent. “The students in our ag program will benefit greatly from the improvements that will be made when we rebuild the Agriculture building.” On May 10, an EF3 tornado tore Front Row (L-R): Tyler Cron; Mitchell Martinez; Brandon Edney; Colton through Orrick, Mo., a town of about 800 Guthrie; Kaitlin Arnold. Back Row (L-R): Andy Homfeld, FCS Financial in Ray County. The high school suffered Harrisonville; Aerin O’Dell, Superintendent, Orrick High School; Patrick extensive damage losing an entire section Jones; Don Honeycutt, FFA Advisor, Orrick High School; Dave Janish, including the ag shop. This school year, ag CEO, FCS Financial; Stephanie Tyler, FCS Financial Harrisonville classes are being taught outside and in the basement. According to Superintendent O’Dell, the school did not qualify for assistance from either the Federal or State Emergency Management Agencies and repairs exceed the district’s insurance coverage. “Helping to rebuild Orrick High School’s ag program is important to us because FCS Financial is committed to the success of Missouri’s rural youth and the communities we serve,” says David Janish, FCS Financial CEO. “We believe strong agricultural youth programs produce strong leaders.”
An EF3 tornado that ripped through a rural Missouri town in May left darkened hallways and classrooms with open sky in its wake at Orrick High School. The school did not qualify for disaster assistance and is currently raising funds to repair and build a new ag building and science lab. 26
HEARTBEAT | WINTER 2014
nivens’ notes Greetings from the Board Room:
I read in an email newsletter headline recently
that an international banking firm, with a considerable interest in agriculture, was projecting another year of low crop prices in 2015. My first thought was that was hardly newsworthy material. Anyone with a connection to grain production is well aware of the crop raised this year and the projected carry-over. Favorable weather in the coming year and those projections will extend for some time. FCS Financial’s year end results would indicate that our members had already made their own projections and were making adjustments. The 2014
James Nivens, Chairman of the Board
business plan expected a decline in new mortgage money from past years but it appears that our membership was even more conservative. Corn at $3 and beans in the $9
beans still had wheels under them. Temporary mobile
certainly slows the drive to purchase real estate.
storage I guess. Some calves to wean yet and heifers to
As usual, the grain farmers’ loss is the livestock
relocate. Cull cows to market. Fences to build and a little
farmers’ gain. The cycle may take a little longer to come
dirt work to be done. Still need to find an opportunity
full circle, but already there is some indication that pork
to decipher some of the alphabet soup of the new farm
and poultry are beginning to increase production. For
programs. May well run out of calendar before it’s all
entertainment, I attended the recent Sho-Me Heifer sale
completed. Probably not a lot different than past years
at the Joplin Regional Stockyards. The average price was
and a familiar situation for any number of other folks.
nearly $2,900. The most common comment was that
But as I write this and reflect back over the past few
$3,000 heifers and $3 feeder calf prices was the $8 corn
months, I realize how fortunate I am that I had a crop
to a cattle producer. With the encouragement of these
to harvest, calves to feed, family and holidays to enjoy,
prices, the projections of the 3 to 5 years of good returns
and the prospects of another new year. I wish you a most
in the cattle industry may be optimistic.
prosperous and Happy New Year.
Even with slightly lower growth than expected, FCS
Financial has had a very good year. At the upcoming December meeting, I would anticipate the board voting to make a patronage declaration. As the business plan is fine-tuned and implemented for 2015, growth may again be tempered but from all indications, the association should expect very solid year.
About Thanksgiving, I had taken a look at a
calendar for the remainder of the year, penciled in the commitments that I knew already existed and tried to fit in all the other things I needed to have done by year end. Harvest was complete but honestly some of the HEARTBEAT | WINTER 2014 27
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We put the right tools at your fingertips. Real Estate Loans
Operating Loans
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Find an FCS Financial office near you:
1.800.444.3276
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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.
a Competitive rates with longer terms a Flexible payment schedules to match your cash flow a Experienced staff to make your financing process simple a 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.