HeartBeat Summer 2013

HeartBeat summer 2013

Growing to meet needs,

New office opens in Springfield.

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

Maurice Glosemeyer, Marthasville

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

James Davis, West Plains

Rick Rehmeier, Augusta

Mark DeShon, Clarksdale

Charles Steck, Jefferson City

Dan Devlin, Edina

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 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 Mt. Vernon 417-466-7101 1-866-466-7101 Neosho 417-451-6084 1-866-451-6084 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 Interim CEO: Kevin Langford 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 | SUMMER 2012

Printed with farmer-grown soybean ink on recycled paper.

table of contents 4

CEO Corner

6

Member Feature

Leader Takes 10 New the Reins

12 Youth in Ag 15 Life is Simple 16 Dollars & Cents 18 Risk Management 20 News Briefs FCS Financial’s Vice President Greg Brown (left) and visitors during the Springfield Grand Opening in March. Approximately 150 people attended the event. Read about two more FCS Financial office changes on page 23.

• • • • • •

Director Elections New Office Update FFA Video Contest AFA Applications Grants Awarded And more!

27 Nivens’ Notes HEARTBEAT | SUMMER 2012 3

ceo corner

Agricultural Credit Conditions and More At this time of year, we start to see reports on agricultural credit conditions for the first quarter of 2013. Reports issued by the Federal Reserve Bank of Kansas City cover the western one-third of Missouri. Reports issued by the Federal Reserve Bank of St. Louis cover the eastern two-thirds of Missouri. Bankers who responded to survey questions made the following observations about those credit conditions.

Federal Reserve Bank of Kansas City • Although actual farm income for the quarter was higher than anticipated, declining crop prices and higher production costs were limiting factors.

• Lower crop prices could eventually improve the profit margins for the Kevin M. Langford, Interim CEO livestock and ethanol sectors.

• Crop insurance prices for corn and soybeans were set at levels that could ensure strong income in 2013 for many crop producers.

• Western Missouri had the highest year-over-year gain in the values of non-irrigated farmland (28.1%) and ranchland (16.8%).

• For many farmland owners, rising farmland values have reduced debt-to-asset ratios.

• A downturn in farm income or land values could impact the ability of more leveraged farming operations to meet debt obligations, especially for borrowers using farmland as collateral on other loans.

• There was lower operating loan demand compared to the first quarter of 2012.

• The loan repayment rate was lower than the first quarter of 2012.

• Although actual capital spending was larger than expected, bankers anticipate the level of capital spending will decrease during the second quarter.

Federal Reserve Bank of St. Louis • Farm income, household spending, and capital spending were higher than in the first quarter of 2012.

• The reported values of quality farmland, ranchland, and pasture land were down slightly from the fourth quarter of 2012.

• Bankers’ expectations for future land value increases and cash rents have moderated from the fourth quarter of 2012.

• The rate of loan repayment was higher than expected and higher than one year ago.

• Both fixed and variable interest rates showed modest declines from the fourth quarter of 2012.

• Although the delay in the planting of corn crops has the potential to affect harvest yields and farm income, federal crop insurance serves as an effective risk-management tool for weather-related conditions.

• Despite the pervasive drought conditions in 2012, only 18% of bankers reported a modest deterioration in the financial condition of crop producers from a year ago.

• About one-third of bankers have observed at least a moderate deterioration in the financial condition of protein producers from one year ago.

• Bankers identified the following as the most significant risks to the farm sector in 2013 – (1) weak economy (52%); (2) increase in input prices (30%); (3) other factors, such as drought or commodity prices (15%); and (4) increase in interest rates (4%).

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HEARTBEAT | SUMMER 2013

We seem to have started 2013 by continuing to discuss many of the topics that we were discussing at the end of 2012 – sequestration, the new Farm Bill, and others. We are closely following the progress of the new Farm Bill through the U.S. House and Senate so we can analyze how our members will be affected by it. The final version of the Farm Bill may look quite different than the versions that were passed by the Agricultural Committees.

This edition of HeartBeat contains information on the recipients of our scholarships for 2013. Since the inception of our program nine years ago, we have awarded over 310 young Missourians with the opportunity to pursue higher education. We firmly believe in the value of investing in the future of these young people.

This edition also contains information about the Association’s new CEO, David Janish. Readers of the last edition of HeartBeat will remember Daryl Oldvader’s last column as he retired after working over 40 years in Missouri agriculture. David starts as CEO on August 1. We are glad to welcome David to the FCS Financial family. We know that he looks forward to meeting with many of you.

Our report for the first quarter 2013 was recently posted on our website and can be found at - https://www. myfcsfinancial.com/about-fcs-financial/financial-reports/. If you have not had the chance to review it yet, please do so. The results shown in that report demonstrate that FCS Financial has started the year on a very good footing.

Thank you for your business.

fcs financial donates the equivalent of 187,500 pounds of food to missouri food banks.

Each year, FCS Financial makes a donation to the five Missouri food banks in our service area: The Food Bank of Central & Northeast Missouri, Harvesters, Ozarks Food Harvest, Second Harvest and Community Food Bank St. Louis Area Foodbank. A natural extension of agriculture to feed the world, the donation makes a difference to nearly 140,000 different people in Missouri who receive emergency food assistance in any given week.

Shown here are employees Joe Abbott (top left photo, left), Brian Zimmerschied (top right photo, left), Tera Dover (bottom photo, left) and Ryan Sanders (bottom photo, right) presenting the gift to the banks.

HEARTBEAT | SUMMER 2013 5

member feature FCS Financial symposium delivers high-level knowledge

By Mark Parker

6

Even the tightest fences can’t keep

international economics and other

companies, as well as the Federal

out the impact of a fast-spinning

issues at the Commercial Farmer

Reserve, she told FCS Financial

global economy on the bottom line

Symposium held earlier this year.

farmers to watch for a recovering

of FCS Financial customers.

Marci Rossell, former chief

U.S.

And with knowledge being

economist for CNBC, led off the

importance of emerging markets

arguably the most important asset

educational event with her global

for farm exports.

a farmer possesses, FCS Financial

economic insight. With experience

brought nationally known experts

as an economist at one of the

a transition year for the U.S.

to

country’s largest mutual fund

economy and American agriculture

share

their

HEARTBEAT | SUMMER 2013

knowledge

of

economy

and

increasing

Rossell believes this will be

is playing a key role. After a flat

meat consumption,” Rossell said.

Report said. “Sometimes logic does

2010, slight improvement in 2011

not prevail in marketing.”

and again in 2012, 2013 could be

a better diet have driven U.S. ag

Brock

the comeback year, she said.

exports to China, altering the face

information as well as patience and

of farm exports.

wisdom to operate successfully in the

Rossell explained. Having worked

“The ag sector is much more

marketing arena. And sometimes it

its way through an avalanche of

dependent on the global economy

requires understanding that goes

foreclosures, the housing market

than ever before and we’ve seen a

beyond the numbers. Farmland is

should be poised for significant

customer shift,” Rossell observed.

a great example. Pointing out that

improvement with spill-over effects

“In 2000, Japan was by far the

prices are well above $15,000 per

of freeing-up income and boosting

biggest customer for U.S. ag

acre in the northern half of Iowa

the labor market.

exports but that has dropped while

and Illinois, Brock said the high

China has gone from buying just

price of corn in recent years is only

Two sectors are driving growth,

Exports, however, are the single

Wealthier citizens demanding

said

farmers

need

biggest driver of economic recovery,

part of what drives land prices.

the economist said. Because they are

Even the tightest fences can’t keep out the impact of a fast-spinning global economy...

capital intensive rather than labor intensive, exports don’t do much to alleviate a high unemployment rate hovering around 7.8 percent. For farmers, however, Rossell stressed that export demand — particularly on the part of China — is highly important to farm prosperity.

“There’s lots of cash out there,”

he said. “For farmers with a high net worth, what’s the difference what they pay for land if they don’t need the money. You can’t understand that as a rational investor. Cropland values were up 18 percent in the Corn Belt from 2011 to 2012. Farm sector equity is at an all-time high,

“You’re going to hear a lot

doubling in the last 10 years. That’s

about China becoming the world’s

a lot of firepower to keep farmland

largest economy but remember, it

2 percent of our farm exports to

prices supported.”

ought to be enormous because they

being our single biggest customer.

Brock’s view of the 2013

have well over a billion people,”

“We are heavily dependent

corn market was a cautionary tale

Rossell pointed out, adding that

on China and, yes, we do buy a

predicting lower prices due to

China’s Gross Domestic Product

lot of consumer goods from them

reduced corn exports and depressed

(GDP) per person is still only about

but agriculture relies on Chinese

demand

60 percent that of Mexico.

demand for its products.”

factors.

“Don’t worry about China

getting too rich,” she said. “They

however, requires another skill set.

trough corn cycles have been getting

still have a lot of room to grow

And when it comes to marketing

shorter, Brock said, “History tells

so expect them to keep right on

agricultural commodities, there is

us to expect significantly lower

growing and that’s good news for

no place for emotion, according to

corn prices in the next couple of

farmers. In the last 10 years, China

market advisor Richard Brock.

years. Big bulls follow big bears.

has gone from abject poverty to a

“Most farmers make their

Why should this be any different,

global middle class that eats meat

marketing decisions by emotion,”

particularly when you take demand

once a day. That’s the marker —

the publisher of the The Brock

out of the market?”

Capitalizing on that demand,

caused

by

numerous

Pointing out that the peak-to-

HEARTBEAT | SUMMER 2013 7

widespread drought conditions in the Corn Belt. Although soy usage is down, exports are up and crush is at an all-time high, indicating stronger prices relative to corn.

Brock’s prediction that corn

will dip into the $3-$3.50 range in the next year provoked a difference of opinion from another of the Commercial Farmer Symposium’s speakers.

Agricultural futurist Jay Lehr

bet Brock $1,000 that corn will not drop below $4 per bushel for any 30-day period between February 1, 2013, and January 31, 2015.

While Brock expects China to remain a small player in the corn export market, opting instead to feed millions of small swine herds on food scraps, Lehr believes $5 per bushel corn will prove too tempting for the Chinese.

Lehr, who is science director

of the libertarian think tank, the Heartland Institute, is bullish on agriculture in general.

Top Row: Marci Rossell, Bill Conerly Middle Row: Richard Brock, Jay Lehr Bottom Row: Kevin Spafford

“Farming

is

the

greatest

profession ever — we ‘re in the golden age of agriculture,” he asserted.

Although supplies of corn

Lehr said despite a media-

remain

relatively

tight,

Brock

fed mythology, the family farm

expects

carryover

to

increase

has never left America. Media

dramatically as export corn, feed

depiction of agriculture, however,

use and corn for ethanol production

has brought an erosion of the warm

have all dropped.

regard the public has traditionally

Soybeans

8

HEARTBEAT | SUMMER 2013

are

“a

different

had for U.S. farmers, he said.

animal,” Brock said. He does

not see a large soybean carryover

public because we don’t talk to the

coming, largely due to last year’s

public,” Lehr said. “We were once

“We are no longer loved by the

the epitome of everything good in

of recession. The biggest risk of

aren’t we planning for succession?”

America — wearing a white hat

recession, he said, comes from the

he asked.

and riding a white horse.”

European economic crisis.

Spafford urged farmers and

Pervasive misinformation on

“I’m forecasting they will

ranchers to initiate a succession

issues such as the environment

muddle through but there is a

planning

have turned both the horse and hat

chance for a meltdown that would

to treat heirs fairly rather than

black, Lehr said. He urged farmers

have very negative consequences.

equally. Saying that estate taxes

to invest two hours a month talking

They’re important to us — about

are a relatively small part of the

to non-farmers about agriculture.

$2 trillion in exports,” he said.

challenge —one that can be

“You

aren’t

If another recession occurs,

dealt with by tax professionals —

interested but they are fascinated,”

Conerly said, it will likely center on

Spafford said the process begins

he said. “Don’t let the media do the

construction and housing although

with a family meeting.

talking for you.”

it would still influence farm

letting

financial decisions. The economist

and common ground if they

consumers know that every day is

said farmers should expect long-

are willing to come to the table,

Earth Day for American farmers,

term interest rates to rise as the

communicate openly and remain

explaining the role fertilizer and

economy slowly improves but he

flexible, he said. Moreover, farm

crop protection chemicals play in

predicts that rates will remain

families have resources at their

providing an economical, healthful

relatively low.

disposal to aid the process.

and dependable food supply.

“Organic farming is fine,” Lehr

urged farmers to do contingency

to help. Professional resources can

told the FCS Financial customers,

planning for various economic

help you plan but it all starts with

“but we need to double our yields

scenarios in order to make more

the family,” he concluded.

not halve them.”

rapid decisions.

The futurist said a growing

“When a crisis comes, the

of LaRussell said FCS Financial’s

middle class around the world

resource in the shortest supply is

educational efforts always draw

is demanding better food and

time,” he said.

a very positive response from

although

acknowledged

Helping farm families plan

participating farmer-members and

volatility in a farm commodity

for the future was the objective of

represent an important part of the

prices will always exist, he said he

Kevin Spafford, whose company,

lending institution’s commitment

cannot foresee bad times ahead.

Legacy by Design, is an agribusiness

to Missouri agriculture.

succession-planning firm.

that’s not going to change,” Lehr

Noting that 70 percent of U.S.

lender to stay relevant,” he said.

predicted. “China is not going to

farmland will change hands in the

“Commercial size farms operate

eat our lunch — we’re going to be

next 20 years, Spafford asserted

on a very high level so we tailor

serving them lunch.”

that farming is an increasingly

educational programs to fit their

complex

high

needs. It helps keep FCS Financial

provided a global and domestic

demands and higher risks that

and our customers on the same page

economic snapshot projecting low

requires protection.

at the same time as well as providing

to moderate growth in the U.S.

networking opportunities for all of

economy with a one-in-five risk

single greatest asset we have, why

Lehr

think

people

suggested

he

“The pie is getting larger and

Consultant

Bill

Conerly

Although optimistic, Conerly

business

with

“If the farm business is the

process

that

strives

Farm families can find fairness

“You have folks you can rely on

Board Chairman James Nivens

“It’s part of what we do as a

us to learn from each other.”

HEARTBEAT | SUMMER 2013 9

ceo update

Janish takes over FCS Financial leadership When Dave Janish arrives at FCS Financial, he’ll unpack a wealth of experience as well as plenty of enthusiasm for his new job as CEO. “I am very excited about joining FCS Financial,” Janish says.

“It’s a solid, growing organization with an excellent staff and it is going be a great opportunity to make a positive impact on Missouri agriculture.”

The former Chief Operations Officer for CoBank’s Wichita banking center takes the FCS Financial reins on August 1, replacing Daryl Oldvader who retired at the end of last year.

The new FCS Financial CEO grew up on a 2,000-acre farm near Kimball, South Dakota, where his family grew corn, wheat, alfalfa, hay, milo, and oats in addition to running a cow-calf enterprise. As a boy he enjoyed playing basketball, hunting, and working on the farm — except maybe for feeding cows when the mercury hit 20 below, he says with a smile.

That rural background has remained with him and it has shaped his life and professional career.

“I still feel like a farm kid,” Janish says. “My wife, Linda, and I both grew up on farms and that’s where our roots are. I love agriculture, and I always wanted to remain part of it.”

An important component of that farm heritage is an appreciation

for the Farm Credit system.

Although his entire professional career has been focused on the system, the connection began much earlier.

“My dad was a Farm Credit borrower for more than 30 years and he was a real advocate of Farm Credit,” Janish explains. “Farm Credit helped get him started in farming and he never forgot that.”

After graduating from the University of South Dakota with degrees in computer science and mathematics, Janish began his Farm Credit career as an information technology analyst with the Farm Credit Bank of Omaha.

“The decision to work for Farm Credit was an easy one,” he says.

“It allowed me to stay connected to agriculture and to work for an organization I believed in.”

From there he joined what became Farm Credit Council Services in Denver where he also earned an MBA in finance from Regis University. In 1992, Janish became Vice President of Information Services at the Farm Credit Bank of Wichita. He later served as CEO of AgVantis, Inc., a corporation providing business and technology services to Farm Credit associations and banks.

More recently, Janish served as the chief financial officer of U.S. AgBank FCB for five years until its merger with CoBank.

Taking over the reins of FCS Financial puts Janish exactly where he wants to be — closer to the heart of Farm Credit with a more direct connection to farmers, ranchers and agricultural producers.

“FCS Financial has been a

very successful organization,” he says. “It has a very good reputation and the quality of people — from employees to the board to the customers — is excellent.

“For me, it’s a great opportunity to join an organization that is already successful and help take it to the next level. It’s an organization that doesn’t need fixing — and that’s a great foundation for moving forward.”

The key to achieving that goal, Janish emphasizes, is to provide innovative and high quality financial services to FCS Financial customers.

“I think we’re in a pretty good place right now but agriculture is a dynamic industry,” he says. “To be successful in the future, we must be able to respond quickly to the needs of our customers. Any changes should be driven by opportunities to add value. We have to ask, ‘Will it benefit our customers?’ and constantly strive to add value to what we offer them.

“We will continue to build trust, relationships and commitment to the farmers and ranchers of FCS Financial.”

Janish feels strongly that an extremely important component of FCS Financial’s success is its people and says that’s where his focus will be.

“People are the fabric of Farm Credit,” he says. “Many of our people were born and raised in agriculture and any time you can have that insight into your

customers and their industry — when you’ve actually walked in their shoes — it leads to better service and relationships because there’s a real connection and understanding.”

Janish adds that knowledge and expertise in agriculture, a focus on the customer, and being engaged in making FCS Financial and its customers more successful is what he expects from the FCS Financial team.

“Getting the right people doing the right things is the key,” Janish said. “As a leader, selecting the right talent, providing them with opportunities to grow, and helping them get over the hurdles they’re confronted with are my key responsibilities. I feel I know how to get people focused and we will all focus on serving FCS Financial customers.

“We will continue to place a priority on having good people and giving them the tools to do their jobs well.”

He adds that another goal he brings to Missouri is to meet and get to know as many FCS Financial customers as possible.

“The better we know our customers, the better we will be able to provide them the products and services they need to be successful,” he says.

Janish and his wife, Linda, have been married for 33 years.

They have two children, a son, Chris, who is 29 and in his third year of residency at the Mayo Clinic

in Rochester, Minn.; and Caitlan, 24, who was recently married and is working on her Master’s degree in psychology at Avila University in Kansas City.

Professionally, Linda has been an elementary school teacher and finished this past spring term as the reading specialist at Maize South Elementary School near Wichita.

A sports fan who also enjoys riding his Harley, Dave and Linda will settle in the Jefferson City/ Columbia area.

Although he’s bullish on the future of both agriculture and FCS Financial, Janish has been a part of the industry long enough to know well that there will always be bumps in the road.

“We will face headwinds and challenges,” he acknowledges. “But challenges and opportunities go hand in hand. Those who serve agriculture must be able to change and adapt. There will always be changes in agriculture that we will respond to but we will never change our commitment to our customers and rural Missouri.

“We will be there in good times and in bad as a trusted partner to Missouri farmers and ranchers. As long as we continue to do that,” Dave Janish concludes, “FCS Financial will have a very bright future.”

HEARTBEAT | SUMMER 2013 11

youth in ag

2013 FCS Financial Scholarship Recipients Through its scholarship program, FCS Financial has given $324,000 to FCS Financial customers’ children and grandchildren in the past 10 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 is available at www.myfcsfinancial.com and due March 1, 2014.

Skyler Bahner of Smithton plans

Jacob Beckemeyer of Napoleon

on attending Linn State Technical College to major in electrical distribution systems.

plans on attending Northwest Missouri State University to major in agriculture business.

Mitchell Benoit of Centralia plans on attending the University of Missouri-Columbia to major in agricultural systems management.

Alicia Brueggermann of Beaufort

BreeAnna Burns of Stockton plans on attending Southwest Baptist University to major in elementary education.

Nicole Burns of Fredericktown plans on attending Hannibal LaGrange University to major in applied animal science.

Jesse Carroll of Warrensburg

Caitlin Claffin of Sheldon plans on

plans on attending Missouri State University to major in agronomy.

attending Oklahoma State University to major in agribusiness.

Ashli Coday of Seymour plans on attending Missouri State University to major in agriculture business.

Corbin Duffield of Butler plans on attending State Fair Community College to major in nursing (BSN) and physical therapy.

plans on attending the University of Nebraska-Lincoln to major in psychology.

Kimberly Duggan of Silex plans on attending the University of MissouriColumbia to major in biochemistry.

Brittany Eagleburger of Buffalo

Ryan Eisenbath of Silex plans on attending the University of MissouriColumbia to major in biochemistry.

Collin Gandy of Gower plans on attending the North Central Missouri College to major in agronomy.

Kelsie Gibler of Centralia plans on attending Truman State University to major in biology and psychology.

Rachel Groves of Barnett plans on

Caitlyn Harrison of Palmyra plans on attending Crowder College to major in energy efficient building technology.

Kellie Harvey of Shelbina plans on attending the University of MissouriColumbia to major in biochemistry.

Daniel Haynes of Jefferson City

Megan Jones of Neosho plans on

plans on attending the University of Missouri-Columbia to major in agribusiness management.

attending Crowder College to major in crop science.

Sarah Kemper of Conception

Danny Kiehl of Malta Bend plans on attending the University of MissouriColumbia to major in agriculture systems management.

Junction plans on attending Northwest Missouri State University to major in ag business.

plans on attending Missouri State University to major in animal science.

attending the University of MissouriColumbia to major in agricultural economics and pre-law.

HEARTBEAT | SUMMER 2013 13

Samuel McDonald of Silex plans on attending the University of MissouriColumbia to major in plant science.

Mattie Moore of Harrisonville

Brandon Niendick of Wellington plans on attending Northwest Missouri State University to major in agriculture science and business.

Gina Pate of Stockton plans on attending the University of MissouriColumbia to major in animal science/ veterinary medicine.

Jacob Prenger of St. Thomas

Stephen Schniedermeyer of

plans on attending Northeastern Oklahoma A&M College to major in agriculture communications.

plans on attending the University of Missouri-Columbia to major in agriculture business.

Skidmore plans on attending Northeast Community CollegeNebraska to major in mechanized agriculture.

Caitlin Schnitker of Clarksdale

Lucas Swiney of Salem plans on attending the University of MissouriColumbia to major in agricultural education.

plans on attending College of the Ozarks to major in agricultural education and animal science.

Troy Toedebusch of Chillicothe plans on attending the University of Missouri-Columbia to major in agriculture economics.

Schafer Townsend of King City

Michael Voss of Sullivan plans

Jacki Wiederholt of Bolckow

on attending Linn State Technical College to major in diesel mechanics.

plans on attending Northwest Missouri State University to major in agricultural science.

plans on attending Northwest Missouri State University to major in education.

Not Pictured: Jonathan Bellis of Aurora plans on attending Missouri State University to major in plant science.

14

HEARTBEAT | SUMMER 2013

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

J

erry lives a couple of miles northeast of my place. He retired, several years ago, from his job in town, but still runs a nice little bunch of cows and makes quite a bit of high quality hay every summer.

An avid hunter and outdoorsman his entire life, his reputation is unmatched around this community as a skilled and fearless pursuer of any animal that walks, runs, or flies.

I hope that an event that took place this last winter doesn’t tarnish his image.

One of Jerry’s grandsons, who owns a farm adjacent to my home place, had told me enough about the incident to arouse my curiosity, but insisted that I “get the whole story from the horse’s mouth.” As luck would have it, I ran into the

‘coon. The experienced marksman also knew that an attempt to shoot would end in hurting a dog even though it was as obvious as the immortal Jerry Clower once put it, “that one of them had to get some relief.”

As the emergency escalated, Jerry relied on instinct as he grabbed the nearest non-lethal weapon at his disposal; a short-handled garden hoe that always stood in the corner of the garage. With hoe in hand, Jerry went after the critter that was chewing on his beloved dogs, trying to get enough separation to enable him to club the thief. But, just as he drew back the short hoe to make a swing, the large raccoon latched onto Jerry’s leg with his teeth buried into his mid-thigh region. The pain was intense, but the old gentleman kept trying, from every angle, to dislodge the ‘coon from his lockjawed position. Finally, the ‘coon let go and scurried away from both man and dog, leaving Jerry to tend a bleeding wound.

“Wow,” was all I could seem to muster as I stared at his obviously bandaged leg. “Did you learn anything from this particular ‘coon hunt?”

“Yep,” he shot back, “I sure did.”

Wanting to learn from the master, I asked, “And what would that be” “Next time, I’ll take a longerhandled hoe.”

life is simple

elderly hunter a couple of days later at the local feed store.

“Tell me your ‘coon huntin’ story,” I implored him.

Seemingly a little put out, Jerry fired back, “Who told you about that?”

Keeping my sources confidential, I assured him that I had few specifics about his adventure, but was, in fact, concerned about his health following the ordeal. Jerry limped over to one of the chairs at the store and told me to, “Have a seat and learn something from an old man.”

For several weeks prior, Jerry had been noticing that his dogs’ food had been disappearing at an increasingly faster rate. Since neither of his dogs seemed to be fattening up, he could only surmise that some critter(s), under the cover of nightfall, had been assisting the canines in consuming the high-priced dog food. Being the experienced hunter he was, Jerry was fairly certain the culprit was either a raccoon or possum. His experience also told him that, at some point, the guilty party would show themselves.

At daybreak, one late-winter morning, Jerry was awakened by the vicious barking and growling of his two dogs. Realizing the dogs were involved in something more than a disagreement over whose turn it was to eat, Jerry jumped out of bed, quickly slipped on some clothes, grabbing the gun that was close by.

Flinging open the back door, all he could see was a rolling ball of fur and slobber that made it impossible to distinguish between dog and

HEARTBEAT | SUMMER 2013 15

dollars & cents

Top-of-Mind Questions from the Road By: Dr. David M. Kohl Wow, what a fall and winter speaking tour! Hurricanes, snowstorms, and other travel impediments resulted in ten cancelled or postponed speeches and seminars. Despite the cancellations, I had the opportunity to speak at many seminars that were very well attended by exceptional producers, lenders, and agribusiness groups. Here are some perspectives and points to ponder related to the questions I was most asked this fall and winter.

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.

interest rates, interest rates, interest rates!

Questions about interest rates were the most popular on my agricultural landscape speaking tour. Many inquiring minds want to know a specific timeframe for an increase in rates. While I cannot give a specific date, there are some factors the Federal Reserve has identified that could signal a possible rise in rates.

Recently the Federal Reserve attempted to become more transparent by providing specific metrics for unemployment rate and inflation that may signal tapering back the current stimulus packages. The Fed has identified target metrics of reported unemployment rate at 6.5 percent and inflation at 2.5 percent. As of the April release, unemployment is 7.5 percent and both core and headline inflation are well below 2.0 percent. With the unemployment rate nearing 7 percent, it may signal Federal Reserve action, first to reduce bond buying, and then to incrementally increase interest rates, most likely by a 25 basis points initially.

Closely watch the growth of the U.S. economy. A sustained gross domestic product (GDP) growth rate of 2.5 percent or above would be taken into consideration.

Finally observe published comments of the members of the Federal Open Market Committee (FOMC). Trial balloons are usually forwarded to the press two to four months prior to a change in Federal Reserve policy, such as tapering bond purchases, or increasing interest rates. farmland values Speaking of asset values, the next favorite question I have been asked recently relates to my thoughts on land values. The bull market of farmland values is on a 26-year run, if one discounts devaluation in 2009 in Florida, Nevada, Arizona, and in some parts of the California agricultural real estate sector.

The contention is that land value increases of 20 percent to 30 percent are not sustainable in the upper Midwest. The epicenter of the farmland asset

16

HEARTBEAT | SUMMER 2013

bubble is in that region of the country and tapers off toward the coasts and southern part of the U.S. The top-five signals to observe for a land value correction are: • Multiple years of negative profit margins for producers • Slowdown or recession in the emerging markets • Increase in interest rates • Changing government policy, i.e. renewable energy and biofuels • An improbable black swan or blue sky event

super cycle Agriculture is now a decade into the great super cycle. How long will it last? What are the signals that strong commodity prices will abate? First and foremost, the strength of emerging nations’ GDP growth is a factor. The current weighted growth rate of 4.8 percent GDP for the emerging nations would suggest some softening of commodity prices. Reduced central bank stimulus in the U.S. and abroad is a variable worth observing. Of course, commodity supply and demand imbalances created by weather are most likely the clear and present danger. general observations This fall and winter’s speaking tour was full of highly motivated lifelong learners, eager to network and find new management principles and techniques to give them the competitive edge. In many regions of the country, nearly one half of the audience was less than 40 years of age. More women are attending the seminars as farm and ranch owners as well as major decision-makers in farm and ranch businesses. Many adults brought 4-H, FFA, high school, and university students to expose them to opportunities in agriculture available to our youth. These hot topics provide you with some points to ponder and discuss as the 2013 summer growing season unveils the prospects of the economic outcomes of agriculture.

The 30-day vs. 15-Year Farm Credit Bond chart below illustrates that 30 day issues continue to stay at historically low levels through May 2013. On the other hand, movement in the gap between long-term and short-term rates is increasing. 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.

30-Day vs 15-Year Farm Credit Bond 15-Year Farm Credit

30-Day Farm Credit

Fed Funds Target

7.00

6.00

All-in cost

5.00

4.00

3.00

2.00

1.00

0.00

Date

HEARTBEAT | SUMMER 2013 17

risk management

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

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

October 1 Premiums/fees due on spring crops.

September 30 Sales Closing date for fall wheat.

October 31 Final plant date for wheat.

(15-day late plant through Nov. 15).

A few reminders to help you report correctly: November 14 November 15 2013 ort rep to date l Sa Fina les closing date for • An MPCI policy requires you to report ion. duct pro at PRF (Rainfall Index). whe all acreage of crops, both insurable and uninsurable, that you have a share. This also includes prevented and late-planted acreages. Zero-planted acreage must also be reported.

December 10 December 15 • Additional acreage or added land must Insurance coverage ends Final acreage reporting date on spring crops. be reported with FSA farm numbers, for wheat and barley. legal description and crop shares. Please contact your agent immediately if you have crops planted on land (other than CRP land released past two years) that has not been cropped in the last three years.

• A report must be filed for every policy even if you have no share in the crops for 2013.

• 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.

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

• 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.

• Report to FSA as the same operating entity/individual that you carry on your MPCI policy or you may not have coverage.

• All acreage reports need to be completed, signed and dated by July 15, 2013. The report needs to be signed by the named insured or the authorized person for the policy or entity.

• Always contact your agent if you have questions.

• 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.

18

HEARTBEAT | SUMMER 2013

MPCI Policy Holders: CLAIMS! • • •

If you discover damage has occurred to your crop, you must notify your agent to turn in a claim within 72 hours (3 days).

Chopping, baling or destroying a crop? Prior to destroying any insured crop, contact your agent so they can request a crop appraisal from the insurance provider.

If you have any questions or you’re in doubt about any part of your policy, contact your agent.

Report to FSA early; then to your crop agent.

Claims cannot be worked or adjusted by your insurance companies until MPCI acreage reports have been turned in and processed by your agent and insurance company. It is of the utmost importance that you report to your local FSA office as soon as possible if you have completed crop planting. Your crop insurance agent needs your 578’s and maps to check and support the processing of your MPCI acreage reports due July 15 for your crop insurance policy.

Hail and named peril coverage provided extra protection.

In a matter of minutes your crops can be severely damaged by hail and/or wind. Hail is one of the most common weather conditions that can threaten your crops and your livelihood. It can wipe out part of a field, damage a few acres here and there or totally devastate an entire crop. Was green snap or wind coverage included in your 2013 hail policy?

Crop hail insurance is a great option to help supplement your Multi-Peril Crop Insurance (MPCI) policy and overall risk management plan. It’s not too late to purchase a policy. Contact FCS Financial today and let one of our agents help you with your coverage needs. With potential crop insurance income per acre at all time highs, a few extra dollars for hail insurance may be your cheapest crop cost per acre.

Wheat Sales Closing is September 30 Insure your new wheat crop with an MPCI policy Please contact your agent for any of the following actions regarding wheat sales: • • • • • •

New Application Coverage level/price election changes to existing policy Add a County Transfer/Cancellation Entity/Marital Status changes Request for Actuarial Change

To ensure accurate premium quoting, please report 2013 wheat production as soon as possible.

need coverage on your forages?

Pasture, Rangeland and Forage (PRF) Rainfall Index insurance must be purchased by November 15, 2013.

HEARTBEAT | SUMMER 2013 19

news briefs

FCS Financial Stockholders Elect Directors Through a mail ballot, the stockholders of FCS Financial elected Kenny Bergmann of Walnut Grove, Mo., Danny Hulse of Hannibal, Mo., Mark Pierce of DeKalb, Mo., and Charles Steck of Jefferson City, Mo., to serve on the Board of Directors for three-year terms. Sherry Jones of Dawn, Mo., was also elected for a one-year term. They will be installed at the Board of Director’s meeting on Wednesday, June 26, 2013. FCS Financial provides credit and financial services to agricultural producers, agricultural-related businesses and rural residents. The FCS kenny bergmann

Financial board consists of 15 members and has 12 areas of representation.

Bergmann, 45, will represent Christian, Dallas, Douglas, Greene, Laclede, Polk, Taney,

Webster and Wright counties. He and his wife, Karen, have three children. They own 431 acres and rent an additional 1,159 acres where they raise alfalfa, grass hay, wheat, fescue seed, oats and 200-head cow herd. He earned an agricultural business management degree from Missouri State University. Bergmann is corporate sales manager for S&H Farm Supply. After having served 14 years with the Polk County Soil & Water Conservation District Board of danny hulse

Supervisors, he is currently a member of the Polk County Enhanced Enterprise Zone Board and in his fourth term with the Dadeville R-II Schools Board of Directors. Along with his family, Bergmann is a lifelong member at the Church of God at Eudora, Mo., where he also teaches adult Bible classes. He also acts as a sponsor/counselor at Harmony Hill Youth Camp.

Bergmann has served on the FCS Financial Board of Directors since 2010.

Hulse, 59, will represent Macon, Marion, Monroe, Pike, Ralls, Randolph and Shelby

counties. He and his wife, Caroline, have been married 36 years and have two sons and three grandsons. They own 430 acres and rent an additional 577 acres. They raise corn, soybeans, sherry jones

hay and sell calves as yearlings in their cow-calf operation. Hulse earned a bachelor’s degree in animal husbandry from the University of Missouri-Columbia. He is a member of the Missouri Cattlemen’s Association. His family attends the Big Creek Presbyterian Church where he is a deacon and serves as treasurer. Hulse has been a member of FCS Financial since 1980 and has served on the Board of Directors since 2010.

Jones, 53, will represent Carroll, Chariton, Grundy, Linn, Livingston, Mercer and

Sullivan counties. She and her husband, Charles, have two children, own 1,370 acres and rent mark pierce

an additional 1,500 acres. Their farming operation consists of backgrounding and finishing commercial Angus cow-calves along with raising corn, soybeans, wheat, alfalfa and hay. Jones is a graduate of the University of Central Missouri with a degree in marketing and finance.

She currently serves as president of Livingston County Farm Bureau, is a board member of the Missouri Agriculture and Small Business Development Authority and serves on the Missouri State Fair Commission. She was employed 22 years with Bank Midwest and served nine years on the Missouri Farm Bureau Board of Directors. Jones and her family attend Calvary Baptist Church in Chillicothe where she serves on the finance committee. She was appointed to the

chuck steck

20

HEARTBEAT | SUMMER 2013

FCS Financial Board of Directors in 2012.

Pierce, 54, will represent Buchanan, Caldwell, Clay, Clinton, Jackson, Lafayette, Platte and Ray counties.

He and his wife, Marlene, have been married 30 years and have three sons. They own 1,295 acres and rent an additional 997 acres. Their son Remington assists with the farming operation that consists of corn, soybeans, hay and 200-head beef cattle. Pierce is a graduate of the Philip Morris Agricultural Leadership Program and the Advanced Alumni Leadership Program conducted by the University of Kentucky-College of Agriculture.

He serves on the Buchanan County Farm Bureau Board, Buchanan County Zoning Board, Missouri’s State Technical Committee for USDA NRCS, Missouri’s Regional Developmental Disabilities Council and manages Asgrow DeKalb Seed Dealership. His family attends the DeKalb Christian Church. He has been a member of FCS Financial since 1977 and has served on the Board of Directors since 2002 and currently presides as the vice chairman.

Steck, 50, will represent Benton, Cole, Franklin, Gasconade, Maries, Miller, Moniteau, Morgan, Osage and

Pettis counties. Steck has been involved in farming since he was a teenager. He and his wife, Carla, have banked with FCS Financial since 1998. They own 325 acres and rent an additional 2,500 acres. They have two sons involved in the farming operation where they raise corn, soybeans, alfalfa and cattle. One of the enterprises Steck is excited about is finishing cattle on turnips raised after the corn crop. In addition to farming and ranching, Steck received an education at University of Missouri-Columbia, College of Agriculture, Food and Natural Resources.

He also has business experience in construction and marketing. His family attends the Church of Christ where Charles also teaches adult Bible classes.

employee conference - offices open with limited services The annual FCS Financial employee conference will be held October 21- 22. Temporary help will be running the office during our time away; however, they are limited in the services they can provide. We appreciate your understanding as we take time to learn more about our industry and connect with our team members from around the state.

HEARTBEAT | SUMMER 2013 21

AFA Leaders Conference; Sponsorship Applications Students can now apply for sponsorship to Agriculture Future of America’s annual personal and professional development conference. The 2013 AFA Leaders Conference will be held Nov. 7-10 in Kansas City, Mo.

Since 1997, AFA has hosted the AFA Leaders Conference to provide unique opportunities to college men and women pursuing agricultural careers. Through the generosity of AFA’s partners, students can apply for Conference sponsorship, which covers program registration, curriculum materials, lodging and meals. Travel is not included.

As a four-track program, Conference offers four different learning opportunities, complementing the student’s year in college. Track 1 focuses on industry and self-assessment and assists freshman students with developing fundamental soft skills crucial for success in college and their careers. Track 2 equips sophomores with communication skills. Track 3 prepares juniors and seniors to live and work in a global market and manage change. Track 4 is a capstone experience for seniors who have attended Track 3.

Focusing on lifelong learning, Track 4 is a highly interactive, participant-directed program, including extensive executive mentoring opportunities.

Each year, AFA welcomes over 500 students from across the nation to Conference. Last year’s delegation represented 33 states, 78 colleges and universities and 97 majors and degree programs. Delegates gain valuable experiences and relationships through opportunities to network with each other and industry professionals.

Conference boasts a 3:1 student to industry professional ratio. The AFA Opportunity Fair, held in conjunction with Conference, connects students to internship, job, study abroad and graduate school opportunities.

Conference sponsorship is a $1,000 value. Applications are due September 6.

To learn more or access the application, please visit www.agfuture.org/ leadersconference.

22

HEARTBEAT | SUMMER 2013

• • • •

Student eligibility requirements: Recommended 3.0 GPA or higher Undergraduate student status Age 17-25 Attending a four-year institution or articulate plans to obtain a fouryear degree • Possess a passion for agriculture • Plans to pursue a career in agriculture

If your organization is interested in partnering with AFA to support student involvement in programs such as AFA Leaders Conference please contact Mark Stewart at mark.stewart@agfuture.org.

Colleges and universities have the opportunity to sponsor student participation at a discounted rate. If your institution has not sponsored students in the past, special opportunities exist.

Please contact Derek Mulhern at

derek.mulhern@agfuture.org for more information.

AFA’s mission is to create partnerships that identify, encourage and support outstanding college men and women who are preparing for careers in the agriculture and food industry. With student participation increasing 70 percent in the last five years, AFA leader development programs have impacted 9,000 college leaders and young professionals from more than 200 colleges and universities throughout 43 states since its inception in 1996.

AFA has awarded more than $8 million in academic and leader development scholarships. For more information about AFA, visit www.agfuture.org or contact Megan Karlin at megan.karlin@ agfuture.org.

2013

Classic

CAFNR ALUMNI ASSOCIATION MIZZOU AG

AG

MIZZOU AG ALUMNI ASSOCIATION MIZZOU AG ALUMNI ASSOCIATION MIZZOU AG

MIZZOU AG ALUMNI ASSOCIATION

ALUMNI ASSOCIATION

Friday, September 6, 2013 MIZZOU AG ALUMNI ASSOCIATION

Registration 10:30 a.m. • Lunch 11 a.m.

MIZZOU AG ALUMNI Tee Time 11:45 ASSOCIATION

L.A. Nickell Golf Course, Columbia, MO Entry Deadline: Aug. 26, 2013

Players will be teamed up if they have less than 4 players.

Fee – $100 per golfer • $400 per team (Through 8/26/13.*) Includes: Green fees • Golf cart • Gifts Select beverages on the course • Steak Fry ticket * Fees increase to $120 per golfer beginning 8/27/13.

http://www.cafnralumni.com/agclassic2013 Phone: (573) 999-5749

New office in Joplin, new location in Lebanon

lebanon

Joplin

opening september 16

Opening October 14

108 North Prosperity Ave. Joplin, MO 417-572-0011 866-451-6084 Fax 866-381-8077 936 Alexis Ave., Lebanon, MO 417-588-5828 866-588-5828 Fax 417-588-5882

north

north

Located on the east edge of town, the new FCS Financial office in Joplin is scheduled to open October 14. At that time, the FCS Financial office in Neosho will be consolidated into the new facility in Joplin and the Carthage office will close permanently. Additionally, the Mt. Vernon office will be consolidated into the Joplin and Springfield offices.

The current part-time office in Cassville will be moved to Monett. To accommodate the move, the Neosho and Mt. Vernon offices will be closed October 11.

The Lebanon office will relocate September 16 to 936 Alexis Avenue in Lebanon. The current office will close on September 13 to accommodate the move. These new facilities enable our employees to form a more comprehensive team to work with customers and provide better access and accommodations for our growing employee and customer base. Grand Openings are being planned. Invitations will be mailed closer to the date.

HEARTBEAT | SUMMER 2013 23

Missouri agriculture is working to educate consumers about modern farming through a dynamic campaign with the St. Louis Cardinals. “SAFE at the Plate” reminds consumers of the delicious, nutritious and affordable food provided every day by Missouri farmers and ranchers.

For many Missouri farmers, farming is more than a chosen profession — it is a commitment to caring for their animals, preserving the land, giving back to their communities and continuously striving to improve.

Get involved and help tell the story behind Missouri’s growing agricultural industry. Visit MOFarmersCare.com or join the conversation on Facebook and Twitter.

SponSored by

24

HEARTBEAT | SUMMER 2013

youth groups receive funds to improve communities

Curtis Luke, Chad McCollough & Kacie Wright from FCS Financial in Maryville award the South Nodaway FFA Chapter a Shaping Rural Missouri grant to landscape around their school flagpole.

Curtis Fischer from FCS Financial in Jefferson City awards the Russellville FFA Chapter a Shaping Rural Missouri grant to renovate and landscape the local Railroad Park.

• • • • • • •

FCS Financial recognized 16 different 4-H clubs and FFA chapters with $250 grants as part of the Shaping Rural Missouri grant program. Grants were awarded to organizations with plans to complete a community improvement project in the coming months.

This is the second 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 Kevin Langford, Interim CEO, 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 $250 Shaping Rural Missouri grant in support of implementing the respective project listed: • Ashland FFA Chapter (Boone County): Landscape renovation of Agricultural Education building.

• Ashton Cloverleaf 4-H Club (Clark County): Improve corral system at Clark County Fairgrounds.

• Benton County 4-H Council (Benton County): Renovate building at Stepping Stones 4-H Camp.

• Drexel FFA Chapter (Cass County): Create an outdoor educational lab at the City Park that can be used to identify common Missouri trees.

• Eager Beavers 4-H Club (Monroe County): Update and improve landscaping at Paris Library.

• Gorin Go-Getters 4-H Club (Scotland County): Improve Scotland County Art Hall at fairgrounds.

• Howell County 4-H (Howell County): Plant orchard consisting of fruit trees and Missouri native nut trees at Don Warden Park.

• Jasper County Teen 4-H Council (Jasper County): Build six picnic tables at Jasper County Youth Fair Concession Stand.

• Knox County FFA Chapter & Young Farmers Chapter

(Knox County): Construct and plant raised flower beds at local nursing home.

Lexington FFA Chapter (Lafayette County): Construct a high tunnel greenhouse to be used by Lexington FFA, Lexington Middle School and High School science classes.

Mexico FFA Chapter (Audrain County): Build three picnic tables for Audrain County 4-H Fairgrounds.

Monroe County 4-H Clubs (Monroe County): Assist in construction of sign for new Exhibit and Community Building.

Russellville FFA Chapter (Cole County): Assist in renovation and landscaping of Railroad Park.

Sonte 4-H Club (Marion County): Build bleachers for Marion County Fairgrounds.

South Nodaway FFA Chapter (Nodaway County): Landscape around the school flagpole.

South Shelby FFA Chapter (Shelby County): Build picnic tables in both communities that the school serves.

Learn more about these recipients and the Shaping Rural Missouri grant from FCS Financial at www.myfcsfinancial.com

MISSOuRI’S MAjOR AGRIculTuRe ORGANIZATIONS ARe TeAMING uP TO SPONSOR The 2013-2014 vIdeO cONTeST eNcOuRAGING FFA chAPTeRS TO cReATe A vIdeO OR AuTO-PlAy SlIde ShOw wITh AudIO ThAT cONveyS A POSITIve MeSSAGe AbOuT The vAlue OF MISSOuRI AGRIculTuRe.

Earn from $200 to $1,500 for your ffa ChaptEr! cONTeST GuIdelINeS

2013-14

FFA vIdeO cONTeST

N Entries should clearly show FFA student participation.

N The target audience should be consumers with limited knowledge of today’s agriculture.

N Three positive messages to keep in mind are: (1) farmers create safe, wholesome food for everyone to enjoy; (2) farmers work hard to care for their animals; and (3) farmers are good stewards of the environment. However, not all three themes need to be addressed in your entry.

N Each FFA district is eligible to have a first, second and third place winner.

N The district winners will compete for the Grand Prize. Winners will be announced at the 2014 FFA State Convention.

N District prizes include: 1st = $500; 2nd = $300; 3rd = $200.

The Grand Prize is $1,000.

N Length of each entry must be a minimum of three minutes and a maximum of five minutes.

N Copy onto a DVD or CD as a movie file using such formats as WMV, MOV, AVI, MPEG or MP4.

N All participants in the video are required to sign a release form, which must be included with the submitted entry.

N Entries must be postmarked by DECEmbEr 20, 2013.

N Only Missouri FFA Chapters are eligible to enter. One entry per FFA chapter.

N The sponsoring organizations claim the rights to all videos submitted (the right to publish, televise and retain all broadcasts).** N The committee reserves the right to disqualify any submission.

SPONSORING ORGANIZATIONS FCS Financial Midwest Dairy Association Missouri Beef Industry Council Missouri Corn Merchandising Council Missouri Farm Bureau Missouri Pork Association Missouri Soybean Programs MFA Incorporated

Submit EntriES to Missouri Farm Bureau Public Affairs Office Attn: FFA Video Submissions P.O. Box 658 Jefferson City, MO 65102 For more information, contact Rebecca French Smith at 573-893-1558 or rsmith@mofb.com. vISIT www.MOFb.ORG/hOMe/FFAvIdeOcONTeST.ASPx for complete guidelines, release forms and examples of former winning videos. ** By submitting an entry, entrant agrees to release and hold harmless the sponsoring organizations from and against any claim, expense or liability arising from or related to submission, participation in the contest and appearance on the program and/or acceptance of any prize.

26

HEARTBEAT | SUMMER 2013

be said for earnings, delinquencies, and

Agriculture is regarded as a cyclical

credit quality.

business. I think most of us are

aware of the inherent nature of these

As this issue of HeartBeat is being

cycles. Some short term cycles are

prepared, the board is in the midst of

very definite and stable. Seasons of

an election cycle. Five elected positions

the year for example, are easier to see

are on the ballot and the board is in the

and comprehend. For those of us at

process of selecting an outside director

least middle age, or some past middle,

to serve as a financial expert. This

have become familiar with some longer

position is a result of the Sarbanes-

cycles. Higher prices lead to increased

Oxley legislation and has been filled

production, over production leads to

the past six years by Bruce Bjornson.

lower prices. It’s not to be considered

Because of family obligations and

greed but simply cycles or the laws

burdensome travel, Bruce has asked

of supply and demand. Throw other

not to be re-appointed. He will

influences such as weather, government

certainly be missed by the board and

actions or other unforeseen quirks into

management. While fulfilling his role

the mix and the cycle become very

as financial expert, he contributed so

erratic and unstable. One cycle that

much more to board discussions that

is receiving a good deal of attention

the new board member will be greeted

today is the price of farmland. Read

with some very high expectations.

any of the farm publications, The

Wall Street Journal, or articles by the

or perhaps era would be a better

Federal Reserve and you can see that

description, is the hiring of a new

it is certainly making news described

CEO. The last issue of HeartBeat

often as a bubble. As the leading ag

announced the retirement of Daryl

real estate lender in Missouri, FCS

Oldvader and that a CEO search

Financial is very much aware of this

was underway. The board had asked

cycle. Those of us that have been

Kevin Langford, association general

involved in production agriculture for

counsel, to serve in the interim until

any length of time realize that the cost

a new hire was made. Planning and

of the real estate is just one piece of

reality are often two separate events,

the puzzle. Greater attention is being

and our perceived short term interim

given now to how an addition fits the

became eight months. Kevin has done

operation and it’s repayment ability.

an admirable job with the additional

Near the end of the past year, because

responsibility as the interim CEO.

of changes to tax laws, there was a good

Still I think he would agree that with

deal of real estate activity. The pace did

the help of senior management, the

slow considerably with the new year

association has been guided by what

to a more manageable and sustainable

could be called a CEO committee in

level. Nearly at mid year now, the

addition to the gracious and capable

association has not only admirable

guidance of Robin Garrison, executive

numbers in growth but the same can

assistant.

nivens’ notes

Greetings from the Board Room:

FCS Financial has its own cycles.

One of the FCS Financial cycles,

James Nivens, Chairman of the Board

Dave Janish will soon be on

board as FCS Financial’s new CEO. Dave comes to us from U S AgBank in Wichita. U S AgBank has merged with Co-Bank in Denver and Dave was obligated to serve until the merger is completed. FCS Financial is funded

by AgriBank, a Farm Credit bank similar to US AgBank and CoBank.

As time has allowed, Dave has visited the staff in Jeff City, some of the field offices and has plans to make more office visits to get acquainted as he relocates.

Cycles are inevitable. Prepare for them with the facts at hand and work through the “interim”. If you haven’t already done so, my suggestion for the cycle we see coming is to visit with your FCSF loan professional to see that your loan products are structured to fit the operation and the interest rates fixed to match your needs. I am of the opinion that with each change in the cycle, we are provided new opportunities. Hang on and enjoy the ride.

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

Watch Kevin Van Trump from your home computer.

Farm Outlook Update: Kevin Van Trump, a leading expert in agricultural marketing and analysis and producer of the award-winning and world-recognized “Van Trump Report,” will present a Farm Outlook update including commodity prices at a micro and macro level.

Register for the free webinar and receive a 60day trial subscription to the “Van Trump Report.”

Thursday, August 8 • 7 p.m. - 8 p.m.

Register at myfcsfinancial.com

Growing Relationships. Creating Opportunities. is a trademark of FCS Financial, ACA.