HeartBeat fall 2012
Taking the bull by the horns.
Customer Service is Job #1.
Board of Directors — FCS Financial ACA James Nivens, LaRussell, Chairman
Dan Devlin, Edina
Mark S. Pierce, DeKalb, Vice Chairman
Maurice Glosemeyer, Marthasville
Kenneth Bergmann, Walnut Grove
Daniel Hulse, Hannibal
Bruce Bjornson, Oro Valley, Ariz., Appointed
Sherry Jones, Dawn
Michael L. Bruce, Nevada
David Meneely, Chillicothe, Appointed
Michael L. Cook, Columbia, Appointed
Gene H. Rademacher, Bland
James Davis, West Plains
Rick Rehmeier, Augusta
Mark DeShon, Clarksdale
Office Locations Bolivar 417-326-4016 1-866-326-4016 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 CEO: Daryl Oldvader 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 | FALL 2012
Printed with farmer-grown soybean ink on recycled paper.
Find out how part-time farmer and businessman Matt Freeman’s life has come full circle. Shown here with wife, Jessie, and children Colbie and Cooper Photos by Joann Pipkin
TABLE OF CONTENTS 4
Daryl’s Desk
5
Youth in Ag
6
Member Feature
10 Life is Simple 12 Dollars & Cents 14 Weather Update 16 Risk Management 18 News Briefs • • • • • •
Forage Connections Holiday Hours Scholarships & Contests Customer Discounts “Canstruction” Food Drive And more!
23 Nivens’ Notes HEARTBEAT | FALL 2012
3
DARYL’S DESK
GreetingsI suppose if one were to describe the transition in this year’s planting-toharvest period, it would read like a passage from Charles Dickens’ A Tale of Two Cities. That is, “It was the best of times; it was the worst of times…” What started as a very promising crop season with early plantings ended with a history-making drought and severe yield shortages. The impact to the livestock sector was equally harsh with scorched pastures and limited water supplies. While we are accustomed to weather extremes in Missouri, this scenario stretched beyond our state lines adversely impacting most of the Corn Belt and much of the U.S. For a number of writings in this publication, we have stressed the concept Daryl Oldvader, CEO
of risk management. This is shaping up to be a year which will clearly reinforce that practice. Fortunately, the vast majority of our crop producers have some
form of loss coverage. Here are some things you should remember as you file your crop insurance claim: 1. If you are certain you will have a loss, file a claim now. 2. A claim that exceeds $200,000 (calculated per crop, per county) will require an APH review of the previous 3 years. If you think you may reach this level, contact your crop agent to begin preparing for the audit process. 3. If you suspect aflatoxin, samples must be taken from the field by an adjustor for a licensed third-party analysis. 4. To expedite the process, have grain tickets/settlement sheets identified by unit/farm. 5. Existing 2011 production in a bin must be measured by an adjuster before any 2012 production can be commingled for on-farm storage in any loss situation. 6. If you plan on abandoning, destroying, chopping, or baling a crop, you must contact your agent and be cleared by the insurance company before proceeding. Please contact one of our licensed FCS Financial crop agents with your questions.
FCS Financial is committed to providing all available options to assist our members during this adverse production
period. There are numerous servicing actions including principal deferment, re-amortization or debt restructure which can be utilized to support cash flow shortages. Your FCS Financial loan professional is available to discuss your financial needs.
With all the changes that this organization has endured over its 96-year life, the one constant that remains is
the weather. From floods to droughts and everything in between, FCS Financial recognizes that some things in agriculture cannot be controlled. This is the reality of the industry. We are determined that the drought of 2012 will not be our defining moment although it may well determine how others define us. We are proud to be a part of agriculture and an ingredient in your financial goals.
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Thank you for your business.
HEARTBEAT | FALL 2012
YOUTH IN AG
FROM A to Z, THE INTERNS TRIED IT ALL!
The 2012 FCS Financial Summer Interns from left to right: Kacie Wright, Marc Jensen, Taylor Huhmann and Kiersten Asbury.
Experiencing the various roles from
internship because the company is
Tuscumbia and attends Northwest
A to Z of FCS Financial employees
widely known in the ag industry
Missouri State University. She is an
can seem intimidating. But the
and for their rural lending expertise.
ag business major who will graduate
FCS Financial interns were up to
“It was interesting to see the
in 2013. Her family raised tom
the challenge.
back side of loan decisions,” Marc
turkeys until 2003 and now has a
The FCS Financial internship
said after working with the Credit
commercial cow/calf operation.
program is designed for college
Department where he found the
students to expose them to the
better information provided by the
fall and really enjoyed it,” Kacie
association and the Farm Credit
loan officer and the customer equals
said. She decided to find out more
System over a 12-week period.
more accurate credit decisions.
about ag finance. A past FCS
Interns spend the first six weeks
Marc
learning about the roles inside FCS
collateral
taking
Kacie was drawn to FCS Financial
Financial from appraisals to credit
loan applications, attending loan
for their reputation and passion for
to loan officers to crop insurance.
closings and property appraisals.
agriculture.
Their remaining time focuses on
experiencing those roles by choosing
responsibilities of the loan officer.
in communities,” she said. This is
an area of interest.
“Being the face of FCS Financial
a value that resonates with Kacie.
Marc Jensen is a senior at the
is extremely important. It is
“Agriculture has given so much to
University of Missouri in Columbia
interesting and completely different
me as a person; I want to be able to
studying agribusiness management
than any other job. You really have
give something back.”
and ag systems management. Raised
to know a little about everything,”
on row crop farm in Higginsville,
he said.
attended construction inspections,
Marc chose FCS Financial for an
Kacie
also
participated
evaluations,
in
In the end Marc enjoyed the
Wright
is
from
“I took an ag finance class last
Financial
scholarship
recipient,
“FCS Financial is so involved
Among other projects, Kacie continued on page 15
HEARTBEAT | FALL 2012
5
MEMBER FEATURE
Learning the ropes.
It is all about service. By Joann Pipkin
He says he’s weathered the storm. On the heels of two consecutive years of drought and a dismal economy waning to see daylight, Matt Freeman knows service is really what it’s all about. As a part-time farmer and business owner, Freeman admits sometimes, “You just jump in and get your feet wet.” And, that’s exactly what this young farmer and entrepreneur did. Freeman and wife, Jessie, are now in their 11th year as owners of Lucky J Steakhouse and Arena, on the southeast edge of Carthage in Jasper County. As a producer of stock for the roping industry, Freeman’s endeavors are intertwined and yet all depend heavily on customer service. “You have to strive to have the best (product) you can,” Freeman explains. “It’s all a customer driven industry and you have to provide customer service.” NOT YOUR TYPICAL BEEF PRODUCER In all actuality, Matt Freeman’s livestock are considered beef cattle but his aren’t your grandpa’s Hereford/Angus cross. Freeman’s Longhorn/Corriente cross cattle are produced strictly for the roping industry. “I usually have about 150-200 roping steers on hand depending on the time of year.” While some of the stock he raises himself, Freeman also purchases steers or heifers weighing about 400 pounds. The cattle go through what is called a “breaking in period” where they are trained to run straight and handle correctly when the header ropes the animal. Freeman says roping cattle will only last so long before they get too
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HEARTBEAT | FALL 2012
slow or too big for the job. Usually, 600-700 pounds is the cut-off weight. “The ideal roping steer would be about a year of age and weigh 400-450 pounds with horns to his ear or a little past,” Freeman explains. Freeman’s love for roping began when he was a kid. He started out team roping with his older brother. “We didn’t really grow up on a farm,” Freeman says. As the Freeman boy’s interest grew in horses and roping, their father purchased some land and the boys helped care for a small herd of Longhorn cows. “We grew up competing in rodeos,” Freeman says. “We went somewhere virtually every weekend.”
Throughout high school, Freeman says he worked on a couple of different farms and even had his own lawn mowing business for a time. After high school though, Freeman says work got in the way of play. The young cowboy went to work for John Bartosh, who owned the Four State Stockyards in Diamond, and who would later become his father-in-law. Freeman’s been to auctioneer school and called the cow sale at Joplin Regional Stockyards for a time. He also partnered with Bartosh in a commission company at Four State. He’s been an order buyer. And, he’s owned a few cows along the way. HOW MAY WE SERVE YOU? It would seem Freeman’s love for the roping industry, though, is what brought him full circle. After Bartosh sold Four State Stockyards, in 2000 he built the Lucky J Steakhouse and Arena in Carthage. Freeman worked for him there, managing the arena end of the business. About a year after opening, with Bartosh ready to sell, the Freeman’s jumped head first into the restaurant and arena business. “We really at the time didn’t know what we were getting into,” Freeman admits. “I had never worked in a restaurant before.” Today, both Matt and Jessie Freeman are hands-on in their Lucky J Restaurant. While a couple of managers assist them, Jessie handles the accounting and book work with Matt tackling the food
ordering. And if the cook doesn’t show, it’s not at all uncommon to find Matt back in the kitchen. In all, the restaurant employs about 30, with 8-10 being full-time. The restaurant, which serves everything from hand-cut steaks to chicken, burgers and pork chops, is open 5 p.m. -10 p.m. Monday through Saturday. Lunch is served weekends during special events as well. Freeman says the restaurant business has grown steadily every year. “We’re really locally driven,” he says. “The locals just enjoy coming out here and it’s different than any other place you could go. It’s not a chain restaurant.” He continues, “We have so many regulars. We have a great crew. A lot of our employees have been here a long time. When the staff knows the customers, that’s important. People like that atmosphere.” SADDLE UP AND RIDE Despite a sluggish economy, Freeman says folks are still coming out to enjoy their hobbies. “They Top: Matt Freeman’s love for the roping industry stems from his childhood. Today, the part-time farmer raises Longhorn/ Corriente roping cattle in addition to running the Lucky J Steakhouse and Arena in Carthage. Bottom: The ideal roping steer, according to Matt Freeman, is one about a year old weighing 400-450 pounds with horns to his ears or a little past. Cattle specifically for the roping industry are in short supply as many of ranchers that produce them have opted with the rise in the price of feeder cattle to turn beef bulls in with their Longhorn or Corriente cows. HEARTBEAT | FALL 2012
7
Weekend events such as horse shows and clinics at the Lucky J Arena keep the Freeman’s hopping. From the first of September through April the arena is also home to nightly activities including team roping, barrel racing and cowboy mounted shootings. Owner Matt Freeman says the facility is leased about 45 weekends every year. The addition of a 150-stall horse barn six years ago helped them expand their weekend clientele.
may not be able to go and do it every weekend,” he explains. From the first of September through April, weekly activities line the calendar at the Lucky J Arena. Cowboy mounted shootings, barrel racing and team roping fill the arena through the week while the facility is leased about 45 weekends each year for events such as horse shows and clinics. Freeman added a 150-stall barn about six years ago, which he says helped expand the weekend clientele. “You have to strive to have the best events you can,” Freeman notes. “It’s all a customer driven industry and you have to provide customer service.” Freeman says the roping industry is huge in the U.S. and the number of team ropers is what’s 8 HEARTBEAT | FALL 2012
driven it. He explains a handicap system put in place by the U.S. Team Roping Championships which rates every roper helps put all participants in competition on the same level. “This has skyrocketed the industry,” Freeman states. “Team roping is a sport for any age and gender,” he explains. “A wide (age and gender) range of people compete in the sport because of the handicap system.” A LITTLE HELP ALONG THE WAY Freeman turned to FCS Financial a little less than two years ago as he sought to expand his cattle operation. Looking to purchase additional acreage, Freeman shopped around on interest rates and found the best deal at FCS Financial. “I had never done business with FCS Financial before but had heard
about them,” Freeman says. “A lot of local farmers utilize their services.” Freeman says the real estate purchase has enabled him to retain some of the steers and realize more salvage value from them once they are finished in the roping industry. He also hopes to keep some of his heifers and start a cowherd, separate from the roping steers. “When beef prices spiked, the roping cattle really didn’t follow them for a while,” Freeman explains. “Yet, those in the roping industry realized they couldn’t leave a Longhorn bull on those Longhorn cows and sell the calf for $400. They realized they could put a beef bull on those cows and sell the calf for $600 or $700 at 9 months of age.” Still, making a profit on a roping steer really isn’t the name of the game, Freeman explains. “I’m happy if I can get out of him what I’ve got in him. You’re not buying
these cattle to make money on them.” IN THE RIGHT PLACE AT THE RIGHT TIME Finding balance in the midst of managing a farm and two businesses, Freeman admits, isn’t always easy. “We live right here,” Freeman says, “and that’s really nice sometimes and sometimes you would like to be further away. We can come and go a lot.” Freeman says his own children —son Cooper, 9, and daughter, Colbi, 7, — are competing in rodeo events themselves. “The good thing is the kids can do a lot of those activities right here at home.” All in all, Freeman says being in the right place at the right time helped him land where he is today. “We had the opportunity to buy the business that a lot of folks wouldn’t have had. And, the local support has been awesome.” Freeman is adamant that the people are what drives the business. “You’ve got to have good help,” he emphasizes. “You have to have a service and an atmosphere that the people will enjoy.” Freeman notes that right now is a very challenging time in the roping steer industry. Good cattle to rope are tough to come by, he says. “This is industry wide, not just here.” “It’s really come to a head this year,” Freeman continues. “I usually would have my cattle bought by now for fall, and I don’t have half of what I need.” That said, Freeman says he will continue to shop around for roping stock. “I may have to just give a little
Lucky J Steakhouse on the southeast edge of Carthage is known for its handcut steaks and family atmosphere. The Freemans have owned the business for 11 years and have seen steady growth. The business prides itself on customer service.
more for the cattle than I want to. It all boils down to having to make more money off the events.” Freeman, though, remains optimistic about the beef industry as a whole. “We’re going through a tough time right now, but I think the stock cows will be worth as much or more next spring as we saw them bring at their highs this year before the drought.” So, this hometown cowboy comes full circle. Maybe it was his love for the roping industry itself. Maybe it was being in the right place at the right time. Or maybe he was just a little “lucky.” Still, Matt Freeman knows the value of customer service in raising roping
steers, in putting on quality events and in serving up a hand-cut steak. “Whether you’re farming or running a restaurant, you have to have people you can trust.” HEARTBEAT | FALL 2012
9
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 2012, Jerry Crownover
Parker is five years old and loves playing t-ball, eating bratwurst, and showing goats. I don’t know how he acquired his love of baseball, but I can only assume he inherited his latter two ‘loves’ from his father. His dad, Justin, lived on one of my farms and worked for me during all the years he spent in college. He loved showing livestock more than anything else and I often stated that he would rather show cattle than eat—and I might add that he really enjoyed eating, as well. It didn’t make any difference whether it was cattle, pigs, sheep, or goats, Justin appreciated a quality animal that was expertly fitted. I still think that if there was a way to put a halter on a fish, Justin would have found a way to show one. 10
HEARTBEAT | FALL 2012
I was reminded of this last week when I watched young Parker conclude his first summer of showing by exhibiting a meatgoat wether at the county fair. Even though he was the youngest exhibitor in attendance, it was obvious that he was already pretty good at showing and really enjoyed being in the ring with the goat he had named ‘Conway.’ When I asked him, before the show, how he came up with that name, he just shrugged his shoulders and said, “I don’t know, but over here is his sister that I’m going to show in the doe class on Saturday. Her name is Loretta.” Aha! Justin explained to me that he had already ‘had the talk’ with Parker. ‘The talk’, for those of you who never showed market animals, was explaining to the young boy that after the show on Thursday, Conway would be sold in the market animal sale and thus become part of the food chain. His father verbalized the reality as compassionately, but truthfully, as possible. “We’re farmers—that’s what we do,” he told the boy, “We produce food so the rest of the people, who aren’t farmers, have good stuff to eat.” Justin told me that Parker’s eyes moistened up a little, at first (as I’m sure his dad’s did, too), but he seemed to understand that part of farm life. The next day, his mother asked the little boy if he was ready to say good-bye to Conway later in the week. Sadly, Parker answered,
“Yeah, I guess so.” Mommy tried to soothe his feelings a little by explaining that he would get a quite nice paycheck from the sale on Thursday night. “You mean I’m going to get money for him?” the boy asked as his eyes lit up. “Of course,” the mother replied. “We’re farmers—that’s what we do.” Now, it all made sense to the young lad. At the show, Parker did a great job of showing his goat and he was rewarded by winning his weight class and moving on to receive Reserve Grand Champion. The little boy had a grin on his face that was worth a million bucks. Later that evening, at the sale of champions, a local farm supply store that had sold Justin all the feed the critter had consumed this summer, bought the goat at a nice price. When Justin and Parker asked the buyer where he wanted the wether sent for processing, the store manager replied with a wry smile, “Ah, just take him home with you. We don’t want to separate the two.” Parker went running back to the barn, and his mother, yelling, “I get to keep him, I get to keep him!” You’ve got to love farm kids… and some pretty good businesses that support them, too.
BREAKING GROUND IN SPRINGFIELD Early next year, FCS Financial will open a new office in Springfield. A tract on the west edge of town near the USDA offices and the Springfield Livestock Auction was purchased for the new building. The floor was poured in August and soon the steel frame and rafters will be installed. After completion, the Bolivar and Springfield offices will be consolidated into the new space.
Floor being poured for the new office in Springfield.
JOPLIN — The search committee has narrowed the site selection to one location but are still working through due diligence. The Neosho office will move to Joplin after construction is complete. Watch for updates in HeartBeat and on our website at www.myfcsfinancial.com. ARTIST RENDERING — New FCS Financial retail facilities have been constructed in Macon and Columbia. Soon to follow are Springfield and Joplin. Below is the artist’s rendering of the buildings.
HEARTBEAT | FALL 2012
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DOLLARS & CENTS
Global Economic Points to Ponder By: Dr. David M. Kohl
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.
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HEARTBEAT | FALL 2012
The other day in a seminar, a naysayer said that global economics is a bunch of noise and that planning is too academic with all of the uncertainty in the economy. I am not sure whether he was having a bad day or was attempting to get my attention. My response was that you may not be interested in global macroeconomics, but it is having a big impact on your business, your family, and your personal life. In this type of environment, business planning is not an option, but a requirement. Despite the participant’s remarks, global economics certainly has a bearing on decision-making in farm businesses. As the hot, dry summer transitions into autumn, there appear to be three major economic fronts that are converging to create a synchronized global slowdown. The dry weather occurring here in the U.S., Russia and India has trumped this slowdown. Three or four dollar corn prices and beans at single-digit prices were in the making if the weather had not shown its wrath in the forms of drought and heat in major production areas of the world. The synchronized slowdown first emerged in the European economy, which represents 26 percent of the world’s GDP. It will continue like a slow moving soap opera, possibly for a number of years. Currently, 12 of the 17 euro nations are in recession, with France and Germany eking out positive growth. Next year’s national elections in Germany will be a pivotal event because the incumbent, Angela Merkel, has had a main priority of keeping the Eurozone together. If she is not reelected, then the probability of a breakup of the euro currency increases dramatically. How does this impact agriculture in the Heartland? China, one of the biggest importers of U.S. agriculture production, finds Europe as their biggest customer, particularly for consumer goods. If Europe goes into a full recession, then China’s economy will slow, possibly decreasing demand for U.S. agricultural commodities. This in turn could cause other emerging nations’ economies such as Brazil, India, Russia, and South Africa to slow, resulting in a “double whammy” in the demand for commodities. Will this scenario set up for record high corn and bean prices, only to be followed by a steep decline? Weather conditions in the southern hemisphere in the next six months and in the northern hemisphere next year will have much to say about this outcome. The final part of the synchronized slowdown is here at home in the U.S. The fiscal cliff, i.e. uncertainty over taxes, health care, and general regulation, has resulted in not only record low approval ratings for our representatives, but it has also has placed American businesses and households in slow
motion regarding capital expenditures and consumer spending. The ensuing increases in government debt and budget deficits with no plan to correct budget imbalances places caution as the main mode of operation. To the participant’s point about not being able to plan for this uncertain economic environment, one could empathize with his feelings. However, a good solid business plan with cash flow projections that are monitored by comparing them to actual results would be a good first step. Recently I facilitated such an exercise with ten of an ag lender’s customers. Surprisingly, after six months of operation in 2012, only one customer missed revenue and cost projections by ten percent. Next, analyze and benchmark your business financials and ratios with a close eye on working capital trends. Working capital is a business’ backstop should worst case scenarios play out this fall and winter, or into next year. Finally, it is a good time to work side-by-side with your lender through these uncertain times. Sometimes two heads are better than one for finding the blind spots and establishing potential correction strategies and actions, which can be a proactive practice in navigating the global economic whitewater. Global economics are here in every producer’s backyard. Denial is a recipe for disaster, while reading the leading economic indicators and developing proactive plans can create opportunity even in the worst of times.
THE 30-DAY VS. 15-YEAR FARM CREDIT BOND chart below illustrates that 30 day issues continue to stay at historically low levels through July 31, 2012. Movement in the gap between long-term and short-term rates decreases slightly. You may want to talk with your FCS Financial expert about locking in historically low, fixed rates on real estate loan or other term loans. Be sure to ask about loan conversion options on those loans that do not include prepayment penalties. This benefit is available to existing loan customers and is generally less costly and simpler than refinancing your loan. 30-Day vs. 15-Year Farm Credit Bond
15-Year Farm Credit
30-Day Farm Credit
Fed Funds Target
8.00
7.00
6.00
All-in cost
5.00
4.00
3.00
2.00
1.00
0.00
Date
HEARTBEAT | FALL 2012
13
SPECIAL: WEATHER 14
August 2012 Weather & Its Impacts on Missouri By: Pat Guinan, State Climatologist, Commercial Agriculture/University of Missouri Extension
The historic drought impacting Missouri intensified over portions of the Show Me state in August where, according to the 8/28/2012 Drought Monitor map, 97.44% of the state was in extreme or exceptional drought. Significant and widespread moisture relief was not realized until the remnants of Hurricane Isaac moved northward from Louisiana and Arkansas into southern Missouri on the last day of August. Much of the state reported substantial precipitation from Isaac over Labor Day weekend. The statewide precipitation average for August was 2.33 inches, or 1.3 inches Pat Guinan attended the University of below normal. Lowest August totals were concentrated across central Missouri Illinois in Urbana-Champaign where he where many locations reported less than 1-inch for the month. Some lower received a B.S. in physical geography in 1986 and an M.S. in atmospheric science amounts, less than 0.5 inches, were reported in Chariton, Howard, Cooper, in 1988. He came to the University Moniteau, Miller, Randolph, Boone, Cole, Monroe, Audrain, Callaway and of Missouri to continue his education Ralls counties. Sanborn Field, located on the University of Missouri-Columbia in atmospheric science and serve as campus, reported 0.11 inches for the month. A few reports of less than a climatologist with the Agricultural 0.50 inches also occurred in far southeastern Missouri, in Cape Girardeau, Experiment Station. Since 1996, he Mississippi and New Madrid counties. Only south central, southwestern, and has been employed by the University a small portion of far northwestern Missouri reported above normal rainfall for of Missouri’s Extension Commercial the month. Agriculture Program as a climatologist. Prior to Isaac, portions of Missouri were recipients of significant rain Pat received his Ph.D. in Soil, events that brought temporary drought relief. Most notably, rain impacted Environmental and Atmospheric Sciences in 2004 and, in addition to southwestern, south central and east central sections on the 4th of the his Extension and campus activities as month where 0.5-1.5 inches were common. Another round of showers and an Assistant Professor in Climatology, thunderstorms dropped 0.5-1.5 inches in south central Missouri on August he serves as the State Climatologist for 16th. Northwestern Missouri, and a few southwestern counties, experienced Missouri and Director of the Missouri 0.5-2.0 inches on 8/25-26 with localized amounts between 2-8 inches reported Climate Center. His specialties in Atchison, Holt and Nodaway counties. Some of the heaviest monthly totals include agricultural meteorology and include Marshfield (6.39"), Salem (6.56"), Mound City (6.59"), Ava (6.66"), climatology. Washington (6.80"), Fairfax (8.34") and Tarkio (9.42"). Tarkio received 8.49" on 8/25-26, with 7.01" inches reported on 8/26. Precipitation enveloped a large part of Missouri on 8/31 as Isaac remnants spiraled northward into the Show Me state. The tropical depression lingered in Missouri for much of Labor Day weekend and brought widespread drought relief in the form of a steady rain falling over multiple hours. Preliminary data indicate the May through August average statewide rainfall total was 8.23 inches, nearly 9 inches below the long-term normal. It was the 3rd driest May-August period on record and the driest since 1936. May-August 2012 was 0.01" drier than the same period in 1953 (Figure 3). Average statewide precipitation for the summer period, Jun-Jul-Aug, was 5.95 inches and ranked as the third driest summer on record, and driest summer since 1953. Extreme heat was less frequent and intense during August, compared to the previous two months, and periods of below normal temperatures were also experienced. Preliminary data indicate the statewide average temperature for August was 76.2°F, or 0.1°F above the 30-year normal. It was the 11th consecutive month with above normal temperatures for the state. Preliminary data ranks the summer of 2012 as the 12th hottest June through August period on record.
HEARTBEAT | FALL 2012
Drought impacts persisted and worsened including widespread crop and pasture losses, livestock stress, and declining stock water and hay supplies. Hydrological issues such as dry wells and stream beds, low river levels, and rural and urban water restrictions were commonplace. Barge traffic along the Mississippi was being hindered due to low water levels not seen since 1988. Grassfires were numerous and averaging well above normal. The extreme conditions were adversely affecting gardens, lawns, trees and shrubs with numerous instances of vulnerable species succumbing to water and heat stress. Wildlife was impacted by the lack of healthy vegetation and dwindling water resources. According to the Missouri Agricultural Statistics Service, by the last week of August, corn, soybean and pastures were reported to be in 85%, 78%, and 99% poor to very poor condition, respectively. Soil moisture reserves were depleted with 96% of the topsoil and subsoil reported in short to very short condition. Hay and stock water supplies were well below normal and reported to be in 90% and 94% short to very short condition, respectively. The precipitation at the end of the month, compliments of Hurricane Isaac, by no means eliminated the drought condition, but it was a step in the right direction. Complete drought elimination for Missouri will take frequent, widespread and significant precipitation events as we progress into the fall season. A significant deficit has accumulated over the past several months and it will take a substantial amount of water to bring depleted water resources above and below the ground to capacity. According to the Climate Prediction Center, temperature and precipitation outlooks for the fall season (Sep-Oct-Nov) are calling for above normal temperatures and equal chances for above, below, and near normal precipitation.
Interns
continued from page 5
worked with crop insurance reports, completed loan applications and collected financial statements to input for analysis.
Being able to travel, get out on the farm and build a relationship with
customers appealed to Kacie. “I liked the part of interacting with people,” she said.
Kiersten Asbury was raised in Yates and now attends Colorado State
University as an ag business major. Similar to Kacie and Marc, Kiersten chose FCS Financial based on an interest in ag finance and the association’s reputation.
Working in a variety of roles provides a well-rounded view of what it
takes to make FCS Financial function. Kiersten spent time inputting tax returns and data in the loan workbook, visiting on farm with customers and preparing for loan closings with the Loan Documentation and Closing departments. A special project Kiersten worked on involved real estate loan analysis.
“Every position has something that I really enjoyed,” Kiersten said.
“Overall, I liked the loan officer and appraisal positions. I enjoyed the customer interaction the most.”
Taylor Huhmann is a senior at University of Missouri in Columbia.
She is an ag education major with a minor in ag economics. Raised on a turkey and cattle farm in Tipton, Taylor was looking for a company to intern with that has roots in rural communities.
“I want to help the people I grew up with and the communities that
have supported me,” Taylor said. “Farmers are my kind of people. I love working with them and hearing their stories.”
A variety of tasks fill the days of FCS Financial interns. Taylor took
payments, went on new home inspections, completed acreage reports, filed records of insurance and toured an agribusiness. Taylor also learned that Missouri is a diverse agricultural state. “Farmers in the north part of the state are a lot different than my turkey and cattle farm,” she said.
Farm visits were the highlight of Taylor’s internship. Witnessing
a wheat harvest reminded her again of the variety found in Missouri’s agriculture. “I found it very interesting because my family doesn’t raise crops,” she said.
We wish our interns success in their educational journey and future
employment. We also appreciate and thank them for their hard work and dedication over the summer.
To learn more about the FCS Financial College Internship program
visit www.myfcsfinancial.com and click on Careers. HEARTBEAT | FALL 2012
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RISK MANAGEMENT
Don’t gamble with your claim.
6
reasons to call your FCS Financial crop insurance specialist today.
1. REPORTING IN TIMELY MANNER If you are certain you will have a loss, file a claim now. Policy provisions require you to report a claim 72 hours after discovery of damage but no later than 15 days after harvest of the unit.
2. PREPARING FOR $200,000 REVIEWS A claim that exceeds $200,000 (calculated per crop, per county) will require an APH review of the previous 3 years. You will be required to provide evidence of your grain production for those years with elevator settlement sheets, feed records, bin measurements, etc. If you think you may reach this level, contact your agent to begin preparing for the audit process.
3. AFLATOXIN AND OTHER QUALITY ADJUSTMENTS If you suspect aflatoxin, samples must be taken direct from the field by an adjuster to be tested by a licensed third-party grader. The test must be paid for by the insured at the time the sample is taken and elevator samples will not be accepted. Adjustments to other quality issues, including low test weight, should be discussed with an adjuster.
4. ADJUSTERS The insurance adjusters are busy this year. You can help the process by having grain tickets/settlement sheets separated and identified by unit/farm.
5. COMMINGLING PRODUCTION Existing 2011 production in a bin must be measured by an adjuster before any 2012 production can be commingled for on-farm storage in any loss situation. If you plan to commingle 2012 production in a bin from more than one unit, you must mark the grain levels for each unit according to your adjuster’s instructions.
6. ABANDONING, DESTROYING, CHOPPING, BALING If you plan on abandoning, destroying, chopping or baling a crop, you must contact your agent and be cleared by the insurance company before proceeding.
VISIT MYFCSFINANCIAL.COM TO SEE THE SHORT VIDEOS FROM OUR CROP INSURANCE SPECIALISTS FOR MORE INFORMATION REGARDING THIS CLAIM SEASON OR CALL 1-800444-3276 TO TALK WITH AN FCS FINANCIAL SPECIALIST. 16
HEARTBEAT | FALL 2012
New for 2013 Wheat Crop; Trend-Adjusted APH Trend – Adjusted APH expanded for 2013 Missouri wheat. The product is only available in selected Missouri counties. See the USDA/RMA website or contact your agent. It is available for irrigated and non-irrigated wheat.
Change in closing date PRF( Pasture, Rangeland, Forage) Rainfall Index Sales closing date for this MPCI coverage is now November 15, 2012. Ask your agent today how this product may help you eliminate some risk in protecting your hay and pasture crops.
Will 2013 be dry like 2012? Looking for a new crop agent or crop insurance company? Look no further! FCS Financial has a team of 20 full-time employees dedicated to crop insurance. Their expertise will help you evaluate the options that best fit your operation’s needs. FCS Financial is one of the largest crop insurance agencies in the state which allows us to write crop insurance with four major insurance companies. They are top-rated, financially strong companies. Contact one of our offices today for more information on the insurance companies we write for and discover the FCS Financial Focused. Customized. Solutions.™ approach to service. Find your FCS Financial Crop Insurance Team Member at myfcsfinancial.com.
Life Insurance Awareness Month While any time is a good time to discuss life insurance with your family members, September happens to be Life Insurance Awareness Month. This makes it a great time to complete a life insurance needs assessment with an agent. FCS Financial can help. We offer you credit, disability and term life insurance through several life insurance companies. If you’re closing a loan or having any other “life event” that may change your life insurance needs, ask your local FCS Financial team member for more information. They will happy to work with you to make sure you have the right coverage. See myfcsfinancial.com for additional information on our life insurance providers.
September 30 Sales Closing Date for Wheat and Barley Last date to purchase, change or cancel an MPCI policy for wheat and barley. More Dates to Remember October 1 (New for 2012) Premiums due on spring crops (No interest attaches as long as paid in full and received by the company by October 31, 2012, as part of the drought relief offer by USDA.) October 31 or November 15 Final plant date for wheat or barley (See county actuarial for details or contact your agent.) November 14 Final date to report 2012 wheat production. November 15 Sales closing date for PRF Rainfall Index policies November 15 Sales closing for Apiculture Rainfall Index policies December 10 Insurance coverage ends on spring crops December 15 Final acreage reporting date for wheat and barley December 25 Last day to report losses on spring crops
HEARTBEAT | FALL 2012
17
NEWS BRIEFS
OUR OFFICES WILL BE CLOSED As we approach the busy season of harvest and holidays, we would like to remind you of our holiday hours. All FCS Financial offices will be closed on the following days in 2012 in observance of the noted holiday.
Columbus Day - October 8 (New for 2012) Thanksgiving - November 22 and November 23 Christmas Eve - December 24 (offices close at noon) Christmas Day - Tuesday, December 25 All offices will be open on Monday, December 31. Payments to be credited in 2012 must be received by noon on Monday, December 31. If you are a Funds Held customer, please notify your FCS Financial office by noon on Friday, December 28, to receive interest credit in 2012.
College Scholarships Available for your High School Senior Perhaps the only thing we’re more proud of than our 96-year relationship with Missouri agriculture is our commitment to Missouri agriculture’s future. Which is why we’re inviting you to apply for one of up to thirty-five $1000 college scholarships we’ll be awarding this year. Eligibility requirements are pretty simple*: •
Child or grandchild of a current FCS
Financial customer; •
Missouri high school senior and a full-time
Missouri high school student the previous year; • Plan to attend a 2-year or 4-year college or university, interest in furthering your education to prepare for your career, and demonstrate participation and leadership in school and community activities. The applicant’s portion of the application must be completed online at www.myfcsfinancial.com. Be sure to print the Media Release form, obtain signatures and return it to FCS Financial by March 1, 2013. *Complete eligibility requirements at www.myfcsfinancial.com
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HEARTBEAT | FALL 2012
HEARTBEAT | FALL 2012
19
Enter the National Ag Day Poster Art Contest The Agriculture Council of America (ACA) and Successful Farming are encouraging young artists to celebrate modern agriculture through the first ever National Ag Day Poster Art Contest. A winning original piece of art will be chosen as the Official National Ag Day poster. The contest is open to amateur artists enrolled in high school or college. The contest theme is Generations Nourishing Generations. Entries will be screened by a nine member jury. Finalists will then be judged through online voting to determine one winner. In addition, the artwork and a profile of the artist will be prominently featured in Successful Farming magazine and Ag Day correspondence. The winner will receive a $1,000 scholarship from Successful Farming. Media releases will also be sent to all Ag Day sponsors and supporters. The artist will receive a portion of the proceeds from limited edition prints and the original artwork will be on display in a public location. The deadline for submitting entries is Midnight (CST), October 31, 2012. For rules visit www.agday.org. “The Agriculture Council of America is fully supportive of the new Ag Day Poster Art Contest,” said Barry Nelson, John Deere and ACA Chair. “It’s a great way to encourage young artists to celebrate agriculture and spread the word of the importance of agriculture in everyone’s lives.” The 2012 FCS Financial National Ag Day is organized by the Agriculture Council of America. Service Quality Monitor ACA is a nonprofit organization composed of leaders in the agricultural, will be mailed at the food and fiber community, dedicating its efforts to increasing the public’s beginning of October awareness of agriculture’s role in modern society. to randomly selected The National Ag Day program encourages every American to: customers. • Understand how food and fiber products are produced. The annual survey allows us to measure • Appreciate the role agriculture plays in providing safe, abundant and affordable products. our current ser v ice, • Value the essential role of agriculture in maintaining a strong economy. compare to previous • Acknowledge and consider career opportunities in the agriculture, food years and plan for the and fiber industry.
Feedback matters to us.
future. If you receive the 2012 Service Quality Monitor, we appreciate your time in completing the questionnaire and returning it to Avant Marketing. Your feedback is invaluable to us as we strive to provide Focused. Customized. Solutions.™. 20
HEARTBEAT | FALL 2012
forage connections from drought challenges
Missouri Corn, University of Missouri, Missouri Cattlemen's Association and Missouri Department of Agriculture have partnered to help connect corn growers and cattlemen across the state. If you are interested in selling or buying corn stover, silage, hay or other forages, please visit these websites: • http://agebb.missouri.edu/haylst/ • http://www.mocattle.org/haydirectory.aspx • http://mda.mo.gov/abd/haydirectory/
Food Drive at State Fair Tops Last Year’s Collection Missouri State Fair Director Mark Wolfe announced that this year’s food drive netted more than 5 3/4 tons of canned food to help alleviate hunger in Missouri, topping last year’s total by more than 2 1/2 tons. “Contributing to the increase is the Ford Super Duty F-250 Canstruction® exhibit built with nearly 7,000 cans,” said Wolfe. The exhibit was on display in the Agriculture Building, with the cans going to the Missouri Food Bank Association (MFBA). The food collection effort was initiated in June at Ford dealerships across Missouri. Ford dealers delivered their summer canned good collection to the fairgrounds Tuesday, August 14, while Missouri Farmers Care collected food at Centennial Gate. Ford dealership donations, gate collections and the Canstruction® exhibit, made the final tally of food collected significant. MFBA Director Scott Baker said that the statewide food banks and pantries will help those in need through the generosity of Missourians. “Thanks to the collection efforts we can provide almost 11,000 meals with the Missouri State Fair’s contribution,” Baker said. Supporting the food drive were Midwest Ford Dealers, the St. Louis Ford Dealers, Missouri Farmers Care, Bings Grocery Stores of Sedalia, Canstruction® Mid-Missouri of Columbia-Jefferson City, project engineer Patrick Earney of Trabue, Hansen & Hinshaw, Inc. of Columbia, and fairgoers. See a time-lapsed video of the Canstruction being built at http://www.youtube.com/user/MOFarmersCare.
Buying Equipment?
Ask your dealer about FCS Financial Express™ FCS Financial Express™ is the local lending option delivered directly through your dealer. We work with a network of nearly 200 equipment dealers in Missouri to provide you the loan options you trust from FCS Financial. Financing for new or used equipment is available. Plus, it is easy, quick and competitive.
EASY– Complete the simple and easy application at your dealership without the hassle of red tape. QUICK– Our FCS Financial Express™ team of local lending specialists is trained to work efficiently and promptly to ensure a quick turnaround on your loan decision. That way, you can spend less time waiting to hear on the status of your loan and more time getting back on the road and into the field.
COMPETITIVE– We are committed to offering competitive rates and terms. Add those to our flexible repayment options, and we can tailor a loan that fits your needs. Want to learn more about FCS Financial Express™ or find a participating dealer near you? Call 1-888-GO-FCSXPRS (1-888-463-2797) or visit our website at www.myfcsfinancial.com. HEARTBEAT | FALL 2012
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Heavier Loads of Grain Allowed on Highways As the harvest season approaches, farmers in some areas of Missouri are carefully watching river levels in light of Missouri's extremely dry conditions. Lower water levels on the Missouri and Mississippi rivers can limit producers' ability to move grain and other farm products by barge. The Missouri Department of Agriculture requested, and the Missouri Department of Transportation agreed, to allow heavier than normal loads of grain throughout the harvest season. Farmers, private and for-hire motor carriers may carry up to 10 percent more than their licensed weight on Missouri highways. However, the heavier loads are not allowed to use interstate routes. Overweight permits will not be required. All other traffic and motor carrier regulations that normally apply remain in place. This waiver is in effect through December 31, 2012. While the waiver is in effect, participating motor carriers are limited to: • A loaded, gross weight no greater than ten percent (10%) above the gross licensed weight of the commercial motor vehicle, • Transportation only within the State of Missouri, • Drivers must obey all posted bridge weight limits, • When crossing a bridge, the driver must restrict the vehicle speed to no more than thirty miles per hour (30 mph) and must center the truck between two lanes of the bridge. The truck driver must yield to oncoming traffic, and • Travel on highways other than Missouri interstate and national defense highways - No travel is allowed on Missouri interstate highways or national defense highway routes. All travelers are advised to visit the MoDOT Traveler Information Map at http://www.modot.org/ for up-todate road closure information. For questions, call 1-800-877-8499 between 7:30 a.m. and 5 p.m. At other times, call (573) 291-4517. National defense highways in Missouri include: • U.S. 65 - between Interstate 70 and U.S. 60 in Springfield, Mo. • U.S. 60 - From U.S. 65 in Springfield to U.S. 63 in Cabool, Mo. 22
HEARTBEAT | FALL 2012
• • • •
U.S. 63 - From U.S. 60 in Cabool to the Arkansas state line U.S. 71 - from Kansas City to the Arkansas state line U.S. 50 and Mo. 23 - From Whiteman Air Force Base to I-470 in Kansas City Mo. 17 and U.S. 63 - From Fort Leonard Wood to U.S. 60
Grants for 4-H and FFA
FCS Financial’s Miles Cameron awarded the Gorin Go-Getters 4-H Club with a $250 Shaping Rural Missouri grant. The Gorin Go-Getters 4-H Club plans to build picnic tables at local fairgrounds.
The Shaping Rural Missouri grant program offered by FCS Financial provides local 4-H and FFA organizations $250 grants to implement projects that will 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. Clubs and chapters are encouraged to choose a project that has tangible value where the outcome of the project can be seen or touched. FCS Financial encourages applicants to collaborate with other community organizations to develop and complete their improvement project. This grant could also be combined with other funds to complete a larger project. Apply at www.myfcsfinancial.com. Email completed applications to FCS Financial or mail it to FCS Financial, Marketing Department, 1934 E. Miller Street, Jefferson City, MO 65101. Applications are due by April 15, 2013, and final decisions on grants are made by May 15, 2013. Projects must be completed by December 31, 2013. To be eligible, 4-H clubs and FFA chapters must be located in one of the 102 Missouri counties served by FCS Financial.
NIVENS’ NOTES
Greetings from the Board Room:
a loan, regardless of size, are very
The past board meeting was the
much similar and this is the primary
annual planning meeting. It’s
reason our operating rate is higher
preliminary, just like that first swing
than a similar sized association in a
in the dark for the string on the old
neighboring state. This is the reality
pull light fixture, but it is a start
of agriculture in Missouri and we are
and a fairly reliable one with the
implementing newer structures and
numbers and experience available.
processes to compensate.
The first place you begin is with a
comparison of the financial results
and financial projections are the
of the year-to-date with the budget
easy part of the planning. It gets
created last year and the actual
pretty vague and gray when you
results of the prior year. All the
also have to include the impact of
measures that we typically examine
the weather, markets projections and
each month as indicators of the
government action, or lack of action.
producers face increasing feed costs.
association’s health and well-being
The Federal Reserve has promised
What could become of Missouri’s
are as good as expected or better.
that the current low interest rate
livestock industry if the drought
Growth for 2012 is quite better than
environment will continue at least
should continue for even another
expected but still very reasonable
in the coming year. There is some
year?
and sustainable. Returns are very
speculation that a new farm bill
probably riskier even than planning
respectable. The credit quality of
won’t be enacted until March.
on government action.
the portfolio, your loans with the
That may be well after the fact for
association, is at a very high level and
Missouri producers when it comes
regarding the planning for next year,
would be difficult to improve. The
to crop plans and crop insurance
we can’t lose sight of the fact that
capital position of the association
needs. Crop insurance alone has
FCS Financial is on track to a very
continues to grow.
played a larger part in the planning
good year. The same can’t be said
As part of the planning process,
process than typical. Because a large
for all of Missouri’s farmers. In last
we had the opportunity to visit with
number of crop farmers will have
year’s HeartBeat at this time, I made
some of the staff from AgriBank
claims to file, many of a size that
a reference to Jim Zerr and that not
who provided us with a comparison
will require audits and more than
all years are 1954s. Apparently more
of FCS Financial with the other
one examiner, settlements may be
of them can be similar than we care
associations in the district. In nearly
some time in coming. What kind
to think but with some planning
all the categories, FCSF ranks very
of an impact will that have on pre-
and a willingness to change, we’ll
well. The one exception would be
payment of inputs? There was a
survive, prosper and do it again.
with our operating costs and we
sizeable reduction in loan volume
You can plan on FCS Financial to
fully expect that. Missouri is a
shortly after the first of the year in
be there.
state of small farms – lots of them.
2012. With the status of this year’s
Smaller farms generate smaller
crop, that’s not being anticipated for
loans – lots of them. Generally
the coming year. As a result of this
speaking, the costs of establishing
year’s drought, Missouri livestock
The numbers, operating results
James Nivens, Chairman of the Board
Planning on the weather is
Even with the apprehension
Be safe.
PRESORT STANDARD U.S. POSTAGE PAID JEFFERSON CITY, MO Permit No. 210
operating loans made for you. For more than 95 years, FCS Financial has been making operating loans to countless farms, ranches, dairies and agriculturerelated businesses to finance everything from seed, feed and feeder livestock to fertilizer, fuel and labor. Our success relies heavily on our unparalleled knowledge of agriculture and the unique financial challenges an agriculture-based business faces. You can rely us on, too. We provide the working capital necessary for you to manage and grow your operation. Our revolving lines of credit give you the flexibility to withdraw and repay funds to meet changing conditions. Since you control the funds, borrow and repay as often as you like prior to maturity. And, minimize your interest costs by paying interest on your outstanding balance only. Attractive rates, anytime access and unlimited transactions make this a valuable tool. FCS Financial is committed to helping you succeed. We do this through our approach to service that we call Focused. Customized. Solutions.™ We are Focused on your success in order to provide service, loans and financing Customized to your needs. And, in the end, to deliver Solutions that help you grow for years to come. Visit us at myfcsfinancial.com, call 1-800-444-3276 or stop by any FCS Financial office to experience Focused. Customized. Solutions.™ for yourself.
Focused. Customized. Solutions.™ For who you are. For what you do. Focused. Customized. Solutions. is a trademark of FCS Financial, ACA. FCS Financial is an Equal Opportunity Provider. Current life insurance carriers available at myfcsfinancial.com