Fall 2009
MISSION
AGRICULTURE – One farmer’s hope for the future
Editor’s Note
Editor’s Note
It’s hard to believe, but autumn is upon us! While most of the summer brought less than desirable weather, we can at least be thankful for the warmer temperatures and much needed sun most of us experienced during the last few weeks of the season. As we transition to shorter days and cooler nights, we know many of you will be busy with fall harvest. We sincerely wish everyone a safe and successful season. While spare moments are certainly limited this time of year, we hope you will take an opportunity to enjoy this latest issue of Partners. Inside, you will find highlights of this year’s
GreenStone scholarship recipients, a review of the Michigan Livestock Expo, and an announcement of GreenStone’s new corporate office building project. Happy reading… and as always, your comments and ideas are welcomed. Published by
CONTENTS
FALL2009
FEATURES 6| GreenStone Scholarships GreenStone Farm Credit Services recently awarded $2,000 scholarships to six students.
9| Mission Agriculture Craig Pollington has experienced many successes with his registered Simmental cattle in the show ring and the sale arena; but his greatest accomplishments haven’t taken place on U.S. soil, but rather half-way around the world in simple classrooms and makeshift barns.
12| 2009 Michigan Livestock Expo The first-ever Michigan Livestock Expo culminated on July 21 with a hugely successful "Sale-abration" auction.
IN EVERY ISSUE 2| CEO Comments 3| Market Outlook 5| Candid Comments 13| Director’s Corner 16| News Update
COLUMNS 4| Is Your Business Profitable? by Dr. David Kohl
7| Spreading Concerns by Amy Owen, E.I.T., and Heather Peña
CEO Comments
CEO Comments by Dave Armstrong
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s I write this, it’s another beautiful September day. Day-time temperatures over the past week or so have been in the mid-70s, falling to the mid-to-low 50s in the evening. While corn and soybean crop maturity is still a significant concern, we are getting some nice days to catch things up a little instead of slowing them down! Yes, we could dwell on the fact that crop maturities are two to three weeks behind, the economy has not been this bad since World War II, our country appears to be “bogged down” in Afghanistan, Iran continues to produce weapons grade nuclear material, the country is embroiled in a bitter debate about national health care reform, the states of Michigan and Wisconsin have huge looming budget issues, hog prices continue to decline, and the list could go on. And, yet, at the risk of sounding Pollyannaish, there are a number of things to be thankful for and optimistic about. In fact, isn’t this really the way it is and always has been? For every negative in our lives we generally have many more positives. But, human nature tends to constantly pull our attention to those things that aren’t right instead of allowing us to enjoy the things that are, at least for very long. We need to remember to maintain a healthy balance between the positives and negatives in life. After all, nothing bad or good lasts forever! An example of this is the Michigan State Fair. The governor has indicated that the oldest running state fair in the country will lose its state funding in the next fiscal year due to budgetary constraints. With this possibility looming over a year ago, a group of Michigan agricultural organizations including GreenStone, Michigan Farm Bureau, Michigan Milk Producers Association, and others along with countless volunteers stepped up to the plate to organize an alternative youth livestock event in July. In fact, GreenStone’s own employees raised $5,000 out of their own pockets in addition to the support GreenStone provided corporately to purchase animals at the sale. The Michigan Livestock Exposition and Sale-abration inaugural events were held at the Ingham County Fairgrounds and the Michigan State University Pavilion on July 17-19 and 21 respectively. Both events were huge successes according to all involved and will create a new set of traditions and memories for future generations to come. Please see page 12 for more details about the event.
As reported in previous editions of Partners, work continues to move forward on the new corporate headquarters. The steel superstructure is now clearly visible from US 127. Work crews are making excellent progress with all phases of the project on schedule and well under budget. A formal groundbreaking ceremony was held on September 28. The event included GreenStone’s Board of Directors, Executive team members, local, state, and federal officials, plus representatives from a number of agricultural organizations. Even though economic times are gloomy at best right now, we are convinced that better times lie ahead for our industry and organization. GreenStone has and always will be committed to serving the financial needs of its members in good times and bad. This project is another symbol and positive demonstration of this commitment. Finally, even though GreenStone’s earnings could be down approximately 5 percent in 2009 over 2008, they will still be positive—quite a feat in the “banking” industry this year. Your cooperative also remains well capitalized to weather the economic storm around it. Portfolio risk has been identified and is relatively concentrated in about a dozen large relationships. While a number of our customers are experiencing financial difficulty, many continue to have adequate equity and cash flow to service their financial obligations as agreed. Of course, producing a product for less than the cost of production cannot go on forever, but we are optimistic that like all bad things this too shall end. I want to wish you the best of luck with harvest. We need to all pray for warm weather and no killing frost until November (I know I’m pushing it, but hey, if you’re going to ask–go for it!). Also, be safe. Harvest time is hectic and one of the most dangerous times on the farm! Get adequate rest and slow down a bit. Getting in that extra few acres late at night isn’t worth serious injury, let alone death. And, remember to count the blessings you have. As always, we appreciate your business! If I can ever be of service, please do not hesitate to contact me directly at 517-318-4105 or dave.armstrong@greenstonefcs.com.
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Market Outlook
FALL2009 MARKET OUTLOOK By Ken Lake
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s concerns over early frost diminished and estimates from private analysts called for enlarged yields and crop size, December corn values have been pressed to new lows. Forecasts currently call for a cool-down, but it no longer looks to be severe, which bodes well for crop maturity. Funds are holding their largest net short position since March; the downside target for nearby corn futures is $2.90. With a pre-harvest low in place, the ethanol industry experiencing margins at their best level in some time and improving U.S. export demand, a long-term low should be registered fairly soon. Do not look for prices to rally much, however, as the U.S. needs
time to work off the large supply it has built up over the past year. November soybeans made a substantial new low recently on frost free weather and warming temperatures. The contract made the largest weekly decline in two months with private forecasts of bigger yield and crop size. Trend following funds continue to be sellers. This break suggests additional selling ahead of the September report. In the preceding weeks, focus has been on large demand and tightening old crop stocks. Recently, it has been less about record demand in the face of a record large U.S. crop. Look for November soybeans to test $8.80 to $9.00. Wheat futures continue to slide with lagging export sales, a weak U.S. Dollar and willing fund sellers. Funds now hold a record short position. Support may be coming due to the fact that recent Australian rains have been minimal and will likely effect production. India recently reported seeding of 30.2 million hectares, compared to 36.8 million a year ago. Support in December wheat was breached recently at $4.60. The market should begin to firm up on any continued weakness. October hog value recently firmed up on stronger export demand and the fact that producers have been liquidating their sow herd. Ideas that pork values are too cheap and that cash markets will not trend continued on page 5...
“Forecasts currently call for a cool-down, but it no longer looks to be severe, which bodes well for crop maturity.�
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Business Profits
Is Your Business Profitable? By Dr. David Kohl
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n my globe-trotting experiences, I am often asked, “How do you know when your business is profitable or an expansion opportunity is viable?” I suggest a business should pass three ‘sniff tests’ concerning profitability. To do this, one first has to determine return on assets, or ROA. The formula is Net Farm Income plus Interest Paid minus Living Withdrawals, all divided by Total Assets. The resulting percentage is the ROA. See an example below: Net Farm Income
$100,000
Plus Interest Paid
+ $50,000
Subtotal:
$150,000
Minus Living Withdrawals
- $50,000
Subtotal:
$100,000
Divided by Total Assets Equals ROA
$1,000,000 10%
In the example, the producer has generated a 10 percent ROA. Now the producer would compare it to three factors: • First, does the ROA meet or exceed the long-term rate of inflation, which is 4 percent? • Second, does the ROA meet or exceed the cost of borrowed money? For example, if the average cost of borrowed money is 7 percent, and ROA is 10 percent, this passes the test. • Finally, does the ROA meet or exceed the opportunity cost or other alternative investments? When the stock market was riding high a few years ago with 10 to 20 percent returns, the answer would be no. However, last year a ROA of 10 percent would be extremely generous given an average negative rate of return of 23 percent in equity markets. As an added ‘sniff test,’ the producer could benchmark to peers. The top 20 percent of producers in Minnesota Community and Technical Colleges’ database generated a 17.6 percent ROA last year. The average producers generated 10.8 percent ROA, while the low 20 percent of producers averaged negative 4.1 percent ROA.
Comments? Please send your remarks to AgGlobeTrotter@accountlist.com. I would like to know what you are thinking. –David Kohl
Dr. David M. Kohl is Professor Emeritus of Agricultural Finance and Small Business Management and Entrepreneurship in the Department of Agricultural and Applied Economics at Virginia Polytechnic Institute and State University (Virginia Tech), Blacksburg, Virginia. He has conducted more than 3,000 workshops and seminars for agricultural groups such as bankers, Farm Credit, FmHA, and regulators, as well as producer and agribusiness groups. He has published four books and over 400 articles on financial and business-related topics in journals, extension, and other popular publications. The opinions stated herein are not necessarily those of GreenStone FCS.
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...Market Outlook continued from page 3 lower is supporting the market. On the other hand, production is expected to increase in October and November and will cap
“On the other hand, production is expected to increase in October and November and will cap rallies unless there is a turnaround in pork exports.”
The Cattle market seems to have the supply fundamentals to work higher over the short-term. Recent talk of the over-sold condition, a recovery in the stock market and strength in hogs has helped cattle futures recover. Look for the cash cattle trade in the weeks ahead to go higher as U.S. fed cattle supplies will be declining into late October, with a cash peak expected around $89 to $91.
Ken Lake is the Originations Services Coordinator for Michigan Agricultural Commodities, Inc., working out of its Global Ethanol office in Riga, Michigan. He can be reached at 517-486-6190 ext. 107, or at kenlake@michag.com. The opinions stated herein are not necessarily those of GreenStone FCS.
rallies unless there is a turnaround in pork exports. Slaughter was up 10% from last year, and production was up 11.7%, causing a negative balance in supply. Consider $56-$57 area as resistance.
CANDID COMMENTS: At GreenStone, we value our partnership with you and recognize the importance of your input. By providing feedback, you help us to better deliver the products and services you need in the manner you deserve. If you have comments you’d like to share, please email them to marketing@greenstonefcs.com or mail to 1760 Abbey Road, East Lansing, MI 48823, ATTN: Candid Comments. We look forward to hearing from you! A selection of recent comments received are included here.
Dear GreenStone, Thank you for supporting the 2009 Michigan Junior Sheep Spectacular event. The show was successful with nearly 100 kids from across the state participating and 180 head of sheep. Thanks again for your continued support. We appreciate your generosity. Sincerely, Sheep Committee MI Junior Livestock Society
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d give e to write an lik st ju ld u o w I enStone e Adrian Gre th at s lk fo e th k. Stacy, pat on the bac ig b a ch n ra b of the and the rest Janet, Roger beyond an ne above d o g e av h am te ty. the call of du ptional service is exce g er m o st cu e Th t bein ot go withou and should n unt at co ac a small noticed. I am akes it m is on and th ti u it st in r u yo tells me pressive. This im re o m en ev care of ke such good ta ey th if at th doing the they must be t, n u co ac e n o unts. l of their acco same with al g. for everythin Thanks again to you. k ac b e gs com in th e ic n ay M er Lynlee Schreib stomer Cu ch n Adrian Bra
Scholarship Winners
TOP of the Class GREENSTONE AWARDS SCHOLARSHIPS
Madalyn
Scott
Tera
GreenStone Farm Credit Services recently awarded $2,000 scholarships to five students from Michigan, who were chosen by the College of Agriculture and Natural Resources at Michigan State University, and one student in Wisconsin, chosen by a committee of GreenStone FCS representatives. Audrey
Jason
Tina
MADALYN HALE, daughter of Tim and Sue of Sandusky, MI
TERA KOEBEL, daughter of Terry and Jennie of Three Oaks, MI
JASON SCHLUETER, son of John and Denise of Cedar, MI
Attending: Michigan State University Majoring in: Crop and Soil Sciences Favorite Web site: www.google.com Fantasy Dinner Guests: Zachary Levi (star of the “Chuck” show), Ann Curry (“Today Show” host), Rafael Nadal (professional tennis player) Most excited about college: “New experience, new culture, new friends and new roommate.”
Attending: Michigan State University Majoring in: Agribusiness Management You might find this interesting: I was voted biggest muscles in my senior class! Farthest place traveled: South Africa Most excited about college: “I’m moving out of the house!”
Attending: Michigan State University Majoring in: Horticulture You might find this interesting: I love to snowboard and play soccer. Farthest place traveled: Maui, Hawaii Most excited about college: “It’s going to be one heck of an experience.”
AUDREY ING, daughter of Eric and Cheryl of Milan, MI
TINA HOLST, daughter of Peter and Rita of Chilton, WI
Attending: Michigan State University Majoring in: Animal Science You might find this interesting: I have ridden horses competitively since I was two years old. Fantasy Dinner Guests: Gary LeVox, Jay DeMarcus and Joe Don Rooney (Rascall Flatts) Most excited about college: “It gets me closer to being a vet!”
Attending: University of Wisconsin–Platteville Majoring in: Agribusiness Management and Accounting Prefers to spend time: Shopping Favorite Web site: www.youtube.com Most excited about college: “I get to meet new people and experience new things!”
SCOTT SIMON, son of Larry and Therese of Westphalia, MI Attending: Michigan State University Majoring in: Agribusiness Management Prefers to spend time: Hunting Favorite Web site: www.cabelas.com Most excited about college: “I hope to further my knowledge in agriculture.”
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Guest Column
Spreading Concerns: Implications of Land Application of Wastewater from Food-Processing Operations
Amy Owen
Heather PeĂąa
L
and application of food-processing wastewater, like the application of manure, has historically been a convenient way of providing a source of nutrients to crops, while providing disposal of nutrient rich organic wastes. Although it is unclear exactly when land application of food processing wastewater began (probably decades ago), those involved in farming, food processing, and other related industries are very familiar with this practice. When managed properly, land application is an appropriate and cost-effective method for handling these wastes.
“Residents who live near areas where land application is permitted are concerned about the protection of their groundwater.� Recently, this time-tested practice of applying food-processing wastewater has been challenged, and in some cases, the challenge has resulted in fines and expensive changes for food processors. Residents who live near areas where land application is permitted are concerned about the protection of their groundwater. Their concern is not necessarily with food-processing wastes, rather, with how the wastes interact with the soil and potentially impact the quality of their groundwater. The wastewater often contains high levels of bacteria-thriving organic matter, such as fruit juices and wastes, sugar, and brine. If the wastewater
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you accept or apply manure or wastewater or are considering it, you should carefully consider how these actions could affect you from a liability perspective, both now and in the future. Educate yourself about the potential risks involved, how waste application could affect your farm and the surrounding environment, and ways you can protect your interests while utilizing environmentally responsible business practices.
“In this growing climate of change, much care should be taken to protect your business.� application rates exceed the soil’s natural ability to process the wastes, there can be adverse effects. As the wastewater leaches through the soil, the bacteria may strip the oxygen from the soil during respiration (process of breaking down food for energy). The oxygen is needed to bind with naturally occurring metals in the soil. With the absence of the oxygen, the metals can be released to percolate through the soil and into local lakes and streams or into drinking water aquifers, from which many residents draw water for their wells. The Michigan Department of Environmental Quality is working closely with various food-processing companies to remedy the groundwater issues that have developed as a result of landapplying wastewater in some areas of Michigan. Some companies have already spent millions of dollars defining the extent of the problem, constructing wastewater treatment plants and/or anaerobic digesters, implementing processing procedures that reduce water usage, and/or replacing impacted wells for residents. Other companies have paid fines and/or closed their doors.
The authors work for The Dragun Corporation, a multi-discipline environmental consulting firm located in southeast Michigan serving agribusiness and commercial clients across the nation and world. They can be reached by phone at 248-932-0228. The opinions stated herein are not necessarily those of GreenStone FCS.
So, what does this mean for farmers? Could the scrutiny of the land application of food-processing wastes focus next on the spreading of farm wastes? Will farm and food-processing waste become regulated to the extent of other waste by-products? In this growing climate of change, much care should be taken to protect your business. Whether
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Feature Article
MISSION AGRICULTURE– One farmer’s hope for the future By Laura Moser
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Craig Pollington has experienced many successes with his registered Simmental cattle in the show ring and the sale arena; but his greatest accomplishments haven’t taken place on U.S. soil, but rather half-way around the world in simple classrooms and makeshift barns. Craig is not just a cattle farmer in Marion, Michigan; he is also a mission worker who has traveled around the world planting seeds of faith and hope in struggling areas of the world.
“We want to do more than just teach the Gospel... Teaching the young pastors about genetic improvements and farming techniques fits in well with their need to make a living.” Craig’s passion for missions has brought him these days to the eastern African country of Uganda, a place more noted for violence and warfare than dairy cattle and crops, but people like Craig are trying to reverse the trend of disparity by helping the people of that land learn to feed themselves. Through his work with the Christian Reform World Missions (CRWM), Craig is helping establish a small dairy farm in conjunction with a Pentecostal Assemblies of God seminary in the city of Mbale. The seminary will serve as a school, teaching pastors not only about Christianity but how to raise crops and livestock. Craig and Rev. Mwaya Wa Kitavi, the Christian Reform World Missions Regional Leader for East and Southern Africa, traveled to Uganda in early 2008 to visit the region and begin planning the dairy facility. Craig’s experience in agriculture, coupled with 17 years of missionary work, made him a good fit for the project. “We have a transformational view of our mission work,” Craig says. “We want to do more than just teach the Gospel, we want to teach people how God can work in all aspects of their lives. Teaching the young pastors about genetic improvements and farming techniques fits in well with their need to make a living.” The 20-cow dairy farm will be run by Sam De Jong, a retired dairy farmer from Washington and his wife, Anne. They hope to have the cattle in place in November. From there, the De Jongs will train a team of local pastors to carry on the program once they leave.
Along with traditional missionary groups from places like CRWM, other organizations are also taking an active interest in modernizing the agricultural practices in this country. Many U.S. universities and agricultural companies are working in Uganda to help build an agriculture sector that not only provides food for the region but a source of income as well. Since its liberalization in 1992, the Uganda dairy industry has seen a significant growth in per captia milk consumption. The Uganda Dairy Processor Association reports nearly a three-fold increase in consumption from 20 liters to over 50 liters in recent years. The increasing demand for dairy products has far-reaching effects on improving household incomes and health for the people in the country. According to the International Farm Comparison Network, the current dairy industry in Uganda is dominated by smallscale farmers who own 90 percent of the national cattle population. In rural areas, where the poor Ugandan live, 60 percent of households keep cattle, not as a source of income, but as a status symbol or store of wealth. Changing the cattle industry to one of a source of income rather than simply feeding one family, requires a paradigm shift among the people.
The Americans that travel to Uganda are working with the local people to help them improve their agricultural practices. Pictured left to right are: A Ugandan General, Cindy Leep, Craig Pollington and Colonel Walter Ocoura. Helping make the paradigm shift is where people like Craig come in. While in Mbale, Craig met with leaders of the Uganda government looking to help other farmers in the country improve the cattle herd and to make the shift to a potential income source for the people. They learned of Craig’s work with registered Simmental cattle in the United States and asked him to help improve the genetics of the cattle herd in Uganda.
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Since Craig’s initial visit to Uganda, leaders of the Uganda Agriculture Ministry have come to the United States to tour modern farms, gathering information to take back to their own country. In September 2008, Colonel Walter Ocoura came to Michigan from Uganda to see Craig’s cattle operation and visit other farms in northern Michigan. Following the visit, Craig was asked by the National Director of Agriculture of Uganda to help improve the cattle breeding on 28 commercial farms in the country. He hopes to return to Uganda in December with the first batch of cattle embryos for the area.
Through the Uganda Amaranth project, the Uganda people are learning to use the high protein grain in a variety of foods. Pictured are some Ugandans eating an Amaranth porridge. Craig is not the only one with Michigan ties working to help Uganda farmers. MSU Extension Specialist Richard Leep and his wife, Cindy, are working with the Uganda Amaranth Project. Amaranth is highly nutritious grain with a 16 percent protein content and more calcium than cow’s milk. Since 1970, agricultural researchers, like Richard, have been working to establish grain amaranth as an answer to disease and malnutrition. Richard is teaching the local farmers how to grow the highprotein grain and Cindy is working with the women, teaching them how to bake and market products from the grains. Craig’s work with the Ugandan people, is not the first time he has used his farming experience and his faith to help struggling people. In the early 1990s, he traveled with a
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mission team to central Siberia to establish churches in the recently liberalized Russian area. Once there, he found that his life-long experiences as a cattle farmer would also be used to help strengthen and build an area of the country looking for ways to become more self-sufficient in the midst of a new government. That first trip was to become one of 24 visits to the region in 17 years. “The first trip was so dramatic,” Craig says. “The people had freedoms they had never experienced before. They were so hungry for information and to learn. We would have over 1,000 people come every night to hear our messages. We see that same eagerness to learn in Africa.” It was on Craig’s third trip that his farming knowledge came into play. During a six-week visit, people from an agricultural university in Novosibirsk learned of his work with cattle raising and farming and asked him to give a series of seminars to some of the top graduates at the university about modern farming practices. Craig was so moved by their eagerness to learn and improve that he promised to return with the tools to help enhance the cattle herd. Craig contacted Dr. John Gunther, an embryo transfer specialist from Mason, Michigan who worked with Craig’s herd. With the help of John and the generosity of area cattle farmers, Craig and John returned with frozen semen and nearly 100 frozen embryos. John taught the Russian farmers how to do artificial insemination and to implant the embryos. For the next decade Craig returned to continue his work of establishing churches and helping farmers adopt modern farming practices. “I am willing to go when God says, ‘go,’” Craig says. “It hasn’t been easy; there is always drama involved, but it is always according to God’s plan. When we took the embryos to Russia, we had to push through a lot of paper work and then after all that trouble the first batch of embryos died on the flight. We were able to find one flight into the region. John’s assistant, Mike Greene, drove another batch to O’Hare and got them on the flight. Timing was crucial because the recipient heifers had been set-up to take the embryos at a certain time. In the end, the embryos made it, but it wasn’t easy.” Craig continued his work in Russia through Seed Time and Harvest Ministry, an organization he started and ran for several years. “I feel it is a privilege to be with broken people—people like me. God has sent me to serve people who have nothing — I mean nothing,” Craig says. “I will go where God sends me. If God is in it, I have to say ‘yes’.”
Michigan Livestock Expo
2009 Michigan Livestock Expo The first-ever Michigan Livestock Expo culminated on July 21 with a hugely successful "Saleabration" auction, which raised $100,600 for youth involved in agriculture thanks to the generous purchases of more than 60 single and collective buyers who bid on 31 awardwinning animals and dairy products. GreenStone FCS was there to underline our strong commitment to agriculture, our youth and our customers! As noted below, dollars donated through the internal GreenStone FCS employee fundraiser also contributed to the financial success of the event.
GreenStone FCS and our employees also helped to purchase the following auction lots: • Showcase Market Lamb exhibited by Kelsey AcMoody of Union City, MI (Purchased by GreenStone FCS in conjunction with Hopkins Farm Services)
• Showcase Market Lamb exhibited by Kelsey Sattler of Parma, MI (Purchased by GreenStone FCS in conjunction with Jim Byrum and Dennis Muchmore)
• Showcase Market Lamb exhibited by Kassidy LaRocca of Petersburg, MI (Purchased by GreenStone FCS Employees)
• Showcase Market Goat exhibited by Samantha Harwell of Quincy, MI (Purchased by GreenStone FCS in conjunction with Michigan State University Federal Credit Union and Caledonia Farm Services)
• Showcase Market Lamb exhibited by Michael Jennings of Swartz Creek, MI (Purchased by GreenStone FCS in conjunction with GreenStone FCS Employees)
Walkin’ on Our Casual Side… For Youth! Grand Champion Market Goat exhibited by Cailyn Hines of Quincy, MI (Purchased by GreenStone FCS Employees)
If you stopped by your local GreenStone branch office on a Friday this summer, you may have noticed a more casual attire for many staff. But don’t be fooled, we haven’t backed down on our commitment to provide you with high quality and professional service, nor have we made every Friday a cleaning day. But what we have done, is allowed our employees the opportunity to step-up and show their support of our youth and the industries we serve! Participating staff made a financial donation for the opportunity to “Walk on their Casual Side” on Fridays this summer. In total, over $5,600 was contributed by employees in support of the Michigan Livestock Expo and the Wisconsin FFA Foundation.
Reserve Grand Champion Market Hog exhibited by Brady Littlefield of Burr Oak, MI (Purchased by GreenStone FCS in conjunction with the Michigan State University Federal Credit Union)
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Director’s Corner
Raymond Diederich Region VII Director
Where you now see 12 0 milking cows going through a double six parlor st affed with two employ ee s, you’ll soon see 300 cows st epping into a robotic milker staffed with a swinging arm and mechanical se nsors. Raymond Diederich, who serves on the GreenStone Board of Directors, is in the m iddle of this expansion proj ect, more than doublin g his herd size. Once the new ba rn is complete and th e herd is expanded (currently scheduled for early N ov ember 2009), he plans to in troduce the robot with in the next year to cut labor costs, increase efficie ncy, and hopefully boost pr ofits and herd health .
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What is behind the man with these plans and visions? For starters, his family: wife Debbie; sons Matthew, Daniel and Gabriel, of which the elder two both work on the farm and are part of the expansion project; and daughter Patricia. Located in Brown County, Wisconsin, Raymond has managed the farm since 1977 and has utilized Farm Credit since the beginning. In addition to the milking cows, he and his sons farm 440 acres and raise their own replacement heifers.
“When I come to a board meeting, I go into it with the intent to represent our owners and be their voice in the boardroom.” Beyond the family and farm statistics, another main component of Raymond is knowledge and education—he believes you can never learn too much. Industry involvement is one way he keeps himself educated. He has been a Farm Credit board director for seven years, serving on the FCS of Northeast Wisconsin board before the merger with GreenStone, and has served on the steering committee for the Farm Credit Council Leadership Institute. He also serves as a director of Foremost Farms USA, has been a director for the Brown County Farm Bureau for over 20 years, and is a member of the dairy committee for the Wisconsin Farm Bureau. It’s no wonder that when his wife suggests he should have a hobby, he responds, “I don’t have time.” What is the main issue you would like to address as a director? As a director, I feel I’m a voice for the owners. When I come to a board meeting, I go into it with the intent to represent our owners and be their voice in the boardroom. I always remember our customers are looking for a company to be usable today, and there tomorrow. As part of that, I would like to see GreenStone stay focused on production agriculture—
it is our core business. I believe it is important that GreenStone be a lender that enables its customers to borrow the money they need to keep their operation competitive while keeping financially strong itself. To put it simply, it is a real balancing act! GreenStone FCS customers encompass a uniquely diverse industry of products and services. In general, what do you see as the key to our customers’ success in the future? With GreenStone being a large organization and a diverse lender, we need to walk a lot of walks and be ready to accommodate all types of borrowers with financial security and skilled staff. Our customers seek a lender who understands their businesses, but recognizes that no one knows their individual business better than they do—no two farms are the same. We have to be ready to meet the challenge of being there for these customers, whether they are looking to borrow $100,000 or $15 million. What do you view as GreenStone’s strategy to accomplish its mission and ensure the vision of the organization is achieved? Piggybacking on my prior comments, I believe if GreenStone is going to be successful as an agricultural lender, we must exceed our customers’ expectations—not only in rates, but in service too. Customers want a lender who goes one step further; we need our customers to walk away every once in a while and say, “Wow, I didn’t expect them to do that for me.” The other part of it is that GreenStone needs be progressive in dealing with innovations. We must not only be ready to work with innovative customers, but must have the ability to be innovative in our lending styles and practices. One way I believe we can do this is to have all of our financial services officers arrive on the farm or at the customer meeting with a laptop computer. This will aid us in being increasingly responsive to the customer’s ever changing needs. We have to be fast and accurate, and be able to service their needs on the spot. With
“As a customer myself, I can easily say that I believe the key to GreenStone’s success in the future is to exceed our customers’ expectations.” Fall 2009 PARTNERS
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today’s technological abilities, it is necessary to take advantage of the technology and use it to best serve our customers.
“With GreenStone being a large organization and a diverse lender, we need to walk a lot of walks and be ready to accommodate all types of borrowers.” In regards to agriculture, what do believe has been the most significant advancement within your lifetime? When I thought about this question, I struggled at first trying to get my hands around the ONE most significant to me. After I thought about it, I realized it all came back to this: the speed at which we communicate and get things done. When I look back at when I started farming, I didn’t have a cell phone or a computer. I didn’t plant 16 or 24 rows of corn at a time nor had I ever dreamt of a robot one day milking my cows. Today, we have such speed to get things done; everyone has a cell phone in their ear and communication is so prompt. This is part of why I think GreenStone needs to take more advantage of it, because our customers expect speed. The philosophy of today’s world is to think about it, ask about it, and get it all at once. My sons, Dan and Matt, have that same drive to get it done, and to get it done today. I have to wonder when we’re going to slow down…or, maybe more accurately, how we’re going to keep up.
“With today’s technological abilities, it is necessary to take advantage of the technology and use it to best serve our customers.” Final Thoughts As a customer myself, I can easily say that I believe the key to GreenStone’s success in the future is to exceed our customers’ expectations. As we get larger, we may be one of the only players out there, but we can’t take it for granted.
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PARTNERS Fall 2009
LOOK NO
FURTHER Competitive Careers provided by GreenStone.
If you are looking for more than just a job— something you can truly commit to, believe in, and be proud of—focus in on GreenStone Farm Credit Services. We have a place for high caliber, talented, and enthusiastic professionals in a variety of fields. Stop looking and call today! • • • • • •
Lending & Credit Analysis Insurance & Accounting Legal Marketing Human Resources Information Technology
For additional information contact Jonna Meyers Phone: 517-324-0214 email: jonna.meyers@greenstonefcs.com
News Update
News Update Awarding Youth, Building Herds Manitowoc County Fair, Wisconsin Exhibitors typically go home from their county fair with some great memories, a few ribbons, and a lucky few will cart a special trophy. But one deserving dairy exhibitor at the Manitowoc County Fair in Wisconsin found her load home notably heavier than normal when she won the 2009 Herd Builder Program. The program, focused on dairy exhibitors between 12 and 15 years of age, awards a registered Holstein calf donated by GreenStone to one outstanding individual each year. The 2009 Herd Builder Award was earned by Erin Kappelman, the daughter of Pete and Shellie Kappelman who own and operate Meadow Brook Dairy Farms, LLC. The Kappelmans have been GreenStone members for more than 30 years. As the recipient, Erin added a Holstein calf, Shamdale Frosty Vila, to her herd. GreenStone purchases the award calves from various registered Holstein herds in Manitowoc County each year. The 2009 calf came from Larry and Elise
From Right: Erin Kappelman, Laurie Schetter, Elise Shambeau, Larry Shambeau, and Matt Cracraft
Shambeau of Shamdale Farm. Larry and Elise have been GreenStone members for 10 years. Exhibitors must meet several requirements to compete in the program. In addition to their participation with their 4-H group and fair showing activities, participants must complete an essay that describes their efforts to build and grow their own dairy herd. They finish the competition by interviewing with three judges who determine the recipient of the Herd Builder Award. This marked the fourth year GreenStone has sponsored this program at the Manitowoc County Fair.
AutumnFest 2009 The Michigan State University College of Agriculture and Natural Resources is once again planning for AutumnFest, scheduled for Saturday, November 21, at the MSU Pavilion for Agriculture and Livestock Education. The event, which starts three and a half hours prior to the kickoff of the MSU—Penn St. football game, is an opportunity to join friends, family and fellow Spartans for a day filled with food, fun and football. Guests will have the chance to mingle with supporters from Michigan’s agricultural and natural resources industries, while raising money for the ANR Alumni Association Scholarship Fund, CANR student activities and alumni programming. Highlights include brunch, silent and live auctions, raffles, Sparty, the MSU Pep Band and cheerleaders, and children’s games. Adult brunch tickets are $25 prior to the event and $30 at the door; student brunch tickets (ages 6-21) are $10; while children five and under are free. Tickets for the football game are $49 each. For more information on AutumnFest, or to register for the event, call 517-355-0284 or e-mail anralum@msu.edu.
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Construction Begins on New Corporate Office GreenStone Farm Credit Services recently held an official groundbreaking ceremony for its new corporate headquarters in East Lansing, Michigan. Located along the U.S. 127 corridor just north of Lake Lansing Road at 3515 West Road, the new 78,000 square foot building will replace GreenStone’s current corporate office located on
Abbey Road just south of the construction site. In addition to the association’s current 30,000 square foot corporate headquarters, it is also utilizing more than 6,500 square feet in a separate office building in the immediate area. The $18.8 million project will not only allow the association to consolidate its corporate staff into one location, it will also provide the opportunity for the organization to hire upwards of 65 new employees by 2013 according to its long-term strategic plan. This new corporate office project is a result of GreenStone’s consistently strong growth over the last decade, during which the association has evolved from a $1.5 billion financial institution following the merger of four Farm Credit organization’s in Michigan in 2000, as well as a subsequent merger with FCS of Northeast Wisconsin in 2003, to more than $5.0 billion in assets today. As part of this building project, additional infrastructure work on West and Abbey roads is
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necessary to move forward with development. To assist in the costs associated with this infrastructure work, the Michigan Department of Transportation has recently awarded the City of East Lansing a Transportation Economic Development Fund grant to cover more than 60 percent of the expenses. According to GreenStone President/CEO Dave Armstrong, the association is pleased that it will continue to call East Lansing its corporate home. “This project is one that we have strategically discussed for a number of years now,” said Armstrong. “Not only will this new building address both our short-term and long-term space needs, but it also clearly demonstrates our commitment to continuing to be the leading agricultural and rural community lender in our two-state territory. “While the board of directors and our management team understand the current economic climate and the uncertainty that hovers over the financial industry today, we feel extremely confident that a number of factors—not the least of which is our strong and healthy financial position—dictate that this is the right time for us to move ahead with our building needs.” GreenStone Farm Credit Services Chairman of the Board Lyn Uphaus echoed Armstrong’s support for the project. “For more than 90 years, Farm Credit has been a stable and successful source of credit and financial services for farmers and rural residents in Michigan and northeast Wisconsin,” said Uphaus. “We are proud of our accomplishments over the years, and of the consistent fiscal responsibility that this association has exhibited. As a result of that success, this new corporate office will not only present a positive feeling for the staff, management and board of directors, but it will also be instrumental in helping this organization to continue to provide the high level of service
that the nearly 18,000 customers/owners have come to expect of their cooperative.” The general contractor for the new building project is The Wieland-Davco Corporation, based in Lansing, Michigan. With initial construction well underway, GreenStone expects the project to be completed sometime in the fall of 2010.
year degree program, that are in a dairy related curriculum, or have an interest in a dairy related career can apply for scholarships through the MDMSF, which range from $1,500 to $5,000. If you are interested in honoring someone with a donation or applying for a scholarship, please contact Dr. Miriam Weber at MSU at 517-353-1699.
Helping Further the Michigan Dairy Industry
GreenStone FCS Sponsors Dairy Expo
The Michigan Dairy Memorial & Scholarship Foundation (MDMSF) honors members of the dairy industry and assists young people with an interest in the dairy business to financially further their education. It was established by dairy processers and producers in Michigan and it is the largest scholarship fund within the Michigan State University College of Agriculture and Natural Resources. The scholarship funding comes from the donations of individuals, companies and corporations who choose to honor individuals that have performed distinguished services for the dairy industry. More than 160 individuals have been named MDMSF Honorees since the Foundations establishment over 50 years ago. Donors can recognize a designated individual’s accomplishments in the industry, along with investing in future dairy leaders.
Undergraduate MSU students who are enrolled in the two year agricultural technology or the four
Photo courtesy of Michigan Milk Messenger
For the 14th consecutive year, GreenStone Farm Credit Services sponsored the 2009 Michigan Dairy Expo, contributing over $10,000 to Michigan’s largest dairy event since 1995. “GreenStone has always been a generous supporter of our dairy youth programs at the state and local level,” said Dr. Joe Domecq, Michigan State University Extension 4-H dairy youth specialist. In 2009, GreenStone contributed $1,000 to cosponsor the 4-H Dairy Days awards program and banquet, where results are announced for the dairy judging, management, quiz bowl, and youth show competitions. “The award program is a highlight of the Michigan Dairy Expo,” Domecq explained. “It’s great to see all 140 exhibitors come together and be recognized for all the hard work they’ve put into their projects.”
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This newsletter is published quarterly for the customers of GreenStone Farm Credit Services.
1760 Abbey Road East Lansing, MI 48823
PARTNERS PO Box 22067 Lansing, MI 48909 517-318-2290 jim.nowak@greenstonefcs.com aaron.classens@greenstonefcs.com bill.eva@greenstonefcs.com melissa.rogers@greenstonefcs.com
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