Partners Fall 2018 by GreenStone Farm Credit Services

GreenStone FCS

Fall 2018

Promoting the business success of our customers and the rural community

ROLLâ&#x20AC;&#x2122;N WITH THE CHANGES Snider pg. 5

+F all 2018

Market Outlook +L and Values

+C ustomer Digital Tools

FALL 18 5 YBSF Feature. Having the opportunity to work in partnership with his father at a relatively young age gives Zack Snider the unique advantage of taking on responsibilities and management on their farm while his father is still actively involved

23 GreenStone Story. Here is a quick look at the new and improved GreenStone member digital toolbox.

29 Country Living Feature. Living in West Bloomfield, Michigan, Karen Weaver and her daughter, Dawn Bien, long dreamed of having a place of their own for their prized horses.

35 C rop Insurance. Until recently, having specialty crops often created a void in risk protection due to the limited availability of insurance coverage for higher-value crops. 39 Tax Feature. Here are some important details on how the New Section 199A Tax Deduction works.

3 CEO Comments. President and CEO, Dave Armstrong, highlights the progress Farm Credit had made since its inception 102 years ago.

32 Health and Wellness. There are millions of Americans who ride bikes and these tips for beginner cyclists will help you ride better and safer.

9 Market Outlook. Bob Utterback reaffirms his goal to help producers sell the maximum amount of bushels at the best price possible with the least risk.

33 Layering for Cool Temps. The ancient art of layering becomes your smarttechnology thermostat. This tried-and-true strategy lets you regulate comfort by slipping layers on and off as your activity level or the weather changes.

13 Guest Column. There has always been a struggle for balance between progress and resources. 15 Guest Column. Megatrends over the next seven years will help to shape agriculture. 21 Land Values. Each year GreenStone Farm Credit Services compiles market data along with customer data to determine annual benchmark land values.

25 Legislative Matters. The “Rebuild Rural” coalition, led by the Farm Credit Council, is a diverse group of interested parties to focus on addressing rural community issues.

41 My Ag Data. MyAgData has a full feature mobile app you can use to collect data wherever you are—even right in the field.

8 Blog Brief 12 A Productive Mindset

17 Member News 19 Behind the Scenes 20 Pause for Applause 20 Calendar of Events 22 Feeding the Community 22 Candid Comments

26 PAC Progress. The Federal legislative environment is actively involved in a variety of topics, including agricultural policy. The Farm Bill reauthorization, immigration, and trade, to name a few.

27 Directors’ Perspective. Continuing the theme, four directors share what is important to them and why they believe GreenStone is the cooperative to help them accomplish it!

31 Blog Brief 34 Commodity Cuisine... Indian Summer Turkey Chili

36 Crop Insurance Calendar

Publisher’s Note: Believe me, I realize it’s only October, and I’m normally not one to rush the holidays. But I did find myself thinking about what’s to come. When I put aside the innate stress and demands, and focus on the magic, sparkle and serene tradition of the Christmas season, it is easily my most treasured holiday. And then, I took time and did the same consideration of the other holidays – put aside the meals and celebration – albeit a little less shine, they all truly give the same feeling. From Thanksgiving to Independence Day – the magic sits in our ability to appreciate all that is good, strengthen our desire to address the challenges, and support those around us in achieving their success. Your Farm Credit cooperative holds these same values. The shimmer of what’s new brings excitement and intrigue, all built on the steady and true traditions. As we think of the seven cooperative principles, once again you’ll find many of those foundational values represented in this issue of Partners. Open and Voluntary Membership: Take a glimpse into the thoughtful considerations for a horse sanctuary (pg. 29), and the generational value at the helm of a trio of enterprises (pg. 5) – these customer features represent GreenStone’s diverse 24,000 members. Autonomy and Independence: GreenStone’s new website and online features, as explained further through the GreenStone Story (pg. 21), is designed to provide intuitive navigation and a growing reservoir of resources, making the information GreenStone has developed easily available to you. Concern for Community: Late last fall, you helped us select food banks as the place for your cooperative to focus additional outreach and community support. Now help us reach $20,000 of matching funds to these organizations through the Member Grown Outreach initiative! (pg. 24) We hope you find time to sit back and appreciate the traditions of every season, and of your cooperative. Happy Reading. – Melissa

This newsletter is published quarterly for the customers of GreenStone Farm Credit Services. Editorial Laura Moser Melissa Rogers

Art & Design William Eva Annah Horak

37 Crop Insurance News 38 Careers Intern Wrap-Up 40 Tax Calendar 42 Tech Tip

Partners GreenStone Farm Credit Services 3515 West Road East Lansing, MI 48823 800-444-3276 marketing@greenstonefcs.com

CEO Comments:

Not Your Father’s Farm Credit ARE YOU OLD ENOUGH TO REMEMBER THE PHRASE “NOT YOUR FATHER’S OLDSMOBILE?” IF YOU ARE, YOU KNOW THAT OLDSMOBILE WAS A GENERAL MOTORS BRAND THAT WAS SEARCHING FOR A WAY TO REINVENT ITSELF FROM A STODGY CAR LINE FOR “SENIOR CITIZENS” TO A BRAND THAT WAS “COOL” FOR THOSE UNDER 35 AS WELL. UNFORTUNATELY, OLDSMOBILE WAS NEVER ABLE TO “WALK THE TALK” AND ENDED PRODUCTION IN 2004.

Fall 2018 — Partners

The demise of the Oldsmobile brand is not the point, but rather the tagline they used. “Not your father’s Oldsmobile” is still occasionally used today as a way to communicate technological advancement and current relevance for just about anything even that “GreenStone is not your father’s Production Credit or Federal Land Bank Association” either! GreenStone, along with the entire national Farm Credit System, celebrated its 102nd anniversary in July and has come a long way in the array, customization, flexibility and sophistication of the products and services it provides to its members and how you can do business with us. GreenStone is known as the premiere lender to agriculture and rural homeowners in Michigan and Northeast Wisconsin but most people do not know that it is a technology company as well. That’s right! GreenStone makes the loan origination software plus several other applications it uses to do business with its 24,000 members and nearly $9 billion in assets plus, provides these services to eight other Farm Credit associations in the midwest totaling $20 billion in assets. Most financial institutions purchase the technology they use to run their businesses from application providers that specialize in software for the financial services industry and we buy some of these as well if they meet our needs and those of our members at a competitive price. However, we decided to develop our own loan origination system in 2003 when we were unable to get what we needed from

“

reenStone, along with the entire G national Farm Credit System, celebrated its 102nd anniversary in July and has come a long way in the array, customization, flexibility and sophistication of the products and services it provides to its members and how you can do business with us.

traditional sources and it has only grown since then. So what does this mean to you as a GreenStone member? It means you can rely on GreenStone for state of the art technology systems when it comes to protecting your confidential information and providing you with the convenience you need to manage in a fast-paced business environment. In this issue, we are showcasing a number of our on-line tools we have developed that you can use to do business with us how and when YOU choose in a safe and secure environment. The centerpiece of our online activity is the newly designed GreenStone website. The new functionality of the website provides easy access to all our online tools through the My Access portal. It also serves as a digital hub of all resources and tools provided to our customers. Here you can find information on market trends, GreenStone events and other information important to your business.

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Through the My Access portal you can communicate with us at the time and location convenient for you. With two-way file exchange and online banking you can manage your accounts 24-hours a day, view account history and details. You can also access your account information from our convenient app available in the Apple and Google Play stores. With the GreenStone app, you can make payments or deposits, transfer funds or make disbursements from your phone. Our country living customers can take advantage of our fast and convenient on-line loan

application, as well as a loan calculator to estimate loan payments. And remember, if you still prefer to have a personal conversation with us, we have 36 branch locations staffed by people who know you by name and are happy to serve you either by phone or in person. If you need help getting set up on any of the services noted above contact your local branch office and they will be glad to assist you. Best wishes for a productive and safe harvest. Feel free to contact me if I can ever be of assistance. Thank you for your business!

Dave Armstrong

517-318-4105 dave.armstrong@greenstonefcs.com

Partners — Fall 2018

Rollâ&#x20AC;&#x2122;n with the Changes

GROW

HAVING THE OPPORTUNITY TO WORK IN PARTNERSHIP WITH HIS FATHER AT A RELATIVELY YOUNG AGE GIVES ZACK SNIDER THE UNIQUE ADVANTAGE OF TAKING ON RESPONSIBILITIES AND MANAGEMENT ON THEIR FARM WHILE HIS FATHER IS STILL ACTIVELY INVOLVED. RUNNING THEIR DIVERSIFIED FARM OF TURKEY, HOGS AND CASH CROPS REQUIRES THEM TO BE AGILE AND ADEPT AT CHANGING AND EVOLVING — SOMETHING THE SNIDERS HAVE GROWN ACCUSTOMED TO OVER THE PAST TWO DECADES.

In the past 20 years, the Sniders have faced two pivotal points in their history requiring them to make critical decisions on the future of their family business. The first was in 1996, when Zack’s parents, Andy and Beth woke to find their dairy barn, filled with registered Holsteins, engulfed in flames. While many of the youngstock were spared, the Sniders lost their barn and 60 head of dairy cattle.

manager overseeing all three enterprises as well as managing a crew of 10 employees. Priscilla works alongside his mother managing the office operations and record keeping. Looking for the Niche

With three relatively modest sized enterprises, the Sniders look for ways to maximize their products to add value instead of adding quantity. While Zack runs the farm as a collective unit, each enterprise is evaluated to capture the most value. “We call it the three-legged stool, with turkey being the biggest leg,” Zack says. “Our involvement in the turkey cooperative allows us to control our destiny more with the turkeys than the other areas.”

With the dairy operation gone, the Sniders began expanding on the turkey operation they had started in 1994 with Bil-Mar Foods and their sow operation. In 1998, they were faced with another challenge when Sara-Lee (formally Bil-Mar food) announced the closing of their turkey processing plant in Michigan, leaving the current growers without a market. With the loss of their market, the Sniders and other turkey growers in west Michigan pulled together to create the Michigan Turkey Cooperative, giving them a processing option in their area. “My dad always embraced technology and was willing to try new things,” Zack says. “The farm has grown a lot since my dad took over and I am grateful that he is here to help me continue what he started.” Zack returned to the farm in 2013 after completing his bachelor’s of science in Agribusiness Management at Michigan State University. His introduction to the farm management came as they were in the process of increasing their turkey production by 50 percent. In his initial role as operations manager, he was in position to oversee the construction of the new barns and facilities. Today at the age of 27, he and his wife, Priscilla, are in the fifth year as full-partners with his parents. He continues his role as an operations ➡ Top right: Zach Snider relies on technology to monitor his housing facilities and to track important data from his field equipment. ➡ Bottom right: Turkeys are the largest part of the threelegged stool on Snider Farms, which also includes hogs and crops.

Partners — Fall 2018

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Our past loan officer forced us to know our numbers, not just what was in the checkbook.

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With the turkey expansion, Zack is able to segregate the turkey flocks into different management practices giving him the ability to use different feeds. Currently, they raise 26 flocks a year for a total of 250,000 birds annually. The birds are raised in an antibiotic-free setting on a vegetarian feed, giving them the designation of AVF (antibiotic free and vegetarian fed) on their meat. This specialized designation takes close coordination with their feed supplier as well as on-farm management. They also raise about three flocks of organic turkeys each year.

Zack correlates the same business strategy to the hog operation, looking for ways to maximize their investment while finding added value where possible. Currently, they work with other growers to supply weaned pigs to larger operations.

“I spend a lot of time on the close-out data on each flock to determine the performance of the birds,” Zack says. “Feed conversion is king. There are a lot of factors that impact the feed conversion but it’s how we measure the profitability of the flock.”

“We are good at what we do with the hogs, and raising for the genetic market, allows us to stay in the business without having to expand,” Zack says.

“At our size, we don’t have enough volume to meet the demands of larger operations, so we are looking at ways to stay in the hog market without expanding,” Zack says. Recently, Zack has entered into discussions with genetic companies to be a genetic multiplier for the company, raising breeding stock.

Zack employs the same management techniques with his crops – closely

monitoring costs and looking for ways to add value or cut costs. With 48 different landlords covering 2,800 acres, Zack spends as much time monitoring relationships as land. “My dad always embraced technology with the cropping, which makes it easier for me to transition into the management,” Zack says. “We have variable soils from sandy to heavy, so having yield monitors in the combine allows us to closely manage what we do.” Using the data from the equipment, soil samples and good record keeping, Zack can create cropping plans each year that maximize the inputs. The Sniders recently hired a full-time agronomist to manage their crops and implement cropping plans. Good Employees are Key

While Zack keeps close tabs on all the data flowing through the farm, he relies on the team of employees to keep everything running smoothly. “Our crew of employees is really our key to success,” Zack says. “We can’t do the work here ourselves so we depend on all of them. Four of the 10 have been here for over 10 years, and one of our managers started when I was a year old.” Partner with GreenStone

Zack and his dad, Andy, credit their prior loan officer with putting in place the need for good records – something they rely on daily as their business grows and diversifies. “Our past loan officer forced us to know our numbers, not just what was in the checkbook,” Andy says. “It made us better managers. I can sleep well at night because I know we are fine; we have done our work and know our numbers.” “When I was 7 and wanted to be a farmer like my dad, I didn’t picture spending my time in the office crunching numbers, but it is important to really understand what is happening. But I would still rather have a wrench in my hand!” Zack adds. ■ ➡ GreenStone credit analyst Eric Smith works with the Sniders helping them prepare for yearly financial reports.

Fall 2018 — Partners

AGRICULTURE – OPEN FIELDS BLOG BRIEF GreenStone publishes regular updates on our Open Fields blog. Check out some of the posts you may have missed at www.greenstonefcs.com/openfieldsblog. Apple Crop Looks Promising for Growers

Paving the Way for the Next Generation

The dance between supply and demand is an ongoing battle. “Customers think big crop, cheap prices,” says Dawn Drake, manager of Michigan Agricultural Cooperative Marketing Association’s (MACMA) Apple Division. “Meanwhile, growers are seeing increased costs all around, including input costs and many have now gone to the (more expensive) H2A system for labor.”

Working with the Farm Service Agency, we connect with beginning farm operators by smoothing their way into their agricultural pursuits or paving the way for the next generation of farmers. These programs are tailored specifically for beginning farmers, defined as anyone farming for fewer than 10 years. Vegetables Add Diversity to Crop Production There’s a vast array of both processing and fresh vegetables being grown in Michigan and Wisconsin, and this year’s bounty looks to be plentiful. From snap beans and potatoes, to carrots and kale, harvest is underway. Series: Dr. Dave Kohl Articles Dr. 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. Dr. Kohl has traveled over 8 million miles throughout his professional career and has conducted more than 6,000 workshops and seminars for agricultural groups such as bankers, Farm Credit, Farm Service Agency, and regulators, as well as producer and agribusiness groups. We are excited to share his comments through an ongoing blog series. ■

Partners — Fall 2018

By Bob Utterback IN MANY FARM AND BANKER CIRCLES, MY REPUTATION AS A BEAR IS CAUSING MANY TO WANT TO TAR AND FEATHER ME. MY ONLY RESPONSE IS I’M NOT REVIEWING THE MARKET TO MAKE THEM FEEL GOOD. INSTEAD IT’S MY MISSION TO HELP PRODUCERS SELL THE MAXIMUM AMOUNT OF BUSHELS AT THE BEST PRICE POSSIBLE WITH THE LEAST RISK POSSIBLE. THE PROBLEM IS MAXIMUM PRICE IS IN DIRECT CONFLICT WITH RISK. IT’S BEEN MY EXPERIENCE THAT PRODUCERS HAVE EXTREME DIFFICULTY SELLING STRENGTH WHEN IT IS ASSOCIATED WITH A WEATHER SCARE EVENT. THE 2018 MARKETING YEAR WAS NO EXCEPTION. I BELIEVE THAT GREAT OPPORTUNITIES WILL DEVELOP THIS FALL ON HARVEST LOW PRICES, ALLOWING ONE TO START TO IMPLEMENT AN EFFECTIVE MARKETING PLAN FOR EXPECTED 2019 PRODUCTION. BEFORE WE GET INTO THE DETAILS, LET’S REVIEW WHERE WE ARE.

Fall 2018 — Partners

The August supply demand report suggested record corn and soybean crops are coming this fall. The immediate response by producers was it is not out there and they are doing everything they can to fight the bear. Many corn producers have moved last year’s inventory on basis contracts and still had to have inventory priced by October 1. The question is already starting to surface that many processors of corn and soybeans are not going to put corn in the ground. So where will it be stored? Net Impact: Cash basis dropping this fall. This will force producers to find alternatives to dumping inventory at harvest. End Result: An unhealthy amount of old and new crop corn will be held in the bin unpriced in the hope that some type of event will occur to bail out that storage decision. As we all know, there is some degree of uncertainty in regard to the NAFTA program and Chinese imports due to the trade war. While I don’t have any inside information, it appears NAFTA will be resolved by the end of the year. This should help corn, hogs and cattle. Unfortunately, I believe China actually wants to reduce their dependence on U.S. soybeans and is using this trade war as a way to stimulate more involvement in South American production areas. In fact, I would not be surprised to hear about a major expansion of infrastructure spending by the Chinese in Brazil in order to open up a significant amount of land simply waiting for introduction into soybean production. As we all know, once acres come into production, it is very difficult to take them out. Looking forward, I believe the U.S. will still be the dominant corn producer in the world, but we will become the residual supplier of soybeans. This implies soybeans prices could be very violent at times. As long as there is enough inventory to meet demand, prices will be under pressure. However, if and when a supply reduction event occurs, prices could explode which will put hedgers into extreme cash flow exposure. This situation of feast or famine makes for a very uncomfortable outlook when producers have to cash flow all input costs with no assurance that all production costs will be covered.

I am helping clients throughout the Corn Belt develop marketing plans for 2019. Prior to the August supply demand report, most producers [regardless of their production area] were able to lock in prices slightly above breakeven, but soybean prices were well below cost of production. Since then, August report prices have slipped significantly for soybeans and to some degree for corn. I believe corn is slightly below breakeven with average yields, but soybeans are well below cost of production. In a nutshell, most producers need $4.00 December 2019 futures to breakeven; but they also need $10 November 2019 soybeans. As I write this outlook, soybeans prices will need to mimic a $1.00 seasonal bounce from the fall lows to summer highs just to get back to breakeven! What will producers plant next year? Budgets say increase corn acres, but bankers may say there is a limit on available funds. I believe this will be the big debate as we move into the spring of 2019.

Let’s assume the following: 1. From August to October basis should have widened under the pressure of old crop corn and soybeans being moved to make room for the new crop. 2. Fall lows will come earlier than normal, but not before midOctober as a significant amount of corn basis contracts must be priced. 3. Once the corn and soybean crops are harvested, the board should bounce back in November and December due to extremely aggressive farmer holding of inventory because of low prices and wide basis. 4. Since China has taken the entire free stocks inventory out of South America, two things should happen: (a) South American producers will be encouraged to significantly increase acres. I would not be surprised to see at least a 3 percent increase and don’t be surprised to sell 5 percent or more acreage growth. (b) Due to tight holding, soybean futures could experience a significant price response from December to March if any types of dry weather concerns develop in Brazil or Argentina. 5. A large amount of 2018 corn inventory will be stored in the bin unpriced into the spring of 2019. This implies inventory must come out of the bin during the spring and/or summer of next year. The other impact is it has been my experience that, when producers have unpriced inventory in the bins, they cannot sell next year’s production with any degree of aggressiveness. 6. This sets the stage for a very interesting December 2018 to March 2019 for corn producers. Budgets say produce corn, but the bins are full of old crop inventory. Everyone is hoping for a weather event to merge with strong demand to drive prices higher in June and/or July of 2019. The problem is what happens if the best the December 2010 contract can do is a $4.13 double-top between December and March? What happens to corn carryover if all of a sudden we see 7 million or more acres come back into corn production because soybean prices are so low? Do you have a marketing plan that is robust enough to offset the risk of corn carryover going back above 2 billion and cash prices moving below the cost of production?

Partners — Fall 2018

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The problem I see for producers this year is both corn and soybeans have painted themselves into a corner. The only solution is it will take time to consume the extra supply and lower prices to reduce production. The problem I see for producers this year is both corn and soybeans have painted themselves into a corner. The only solution is it will take time to consume the extra supply and lower prices to reduce production. The only concern is we have no way of knowing if it is one year or more like the 1980 to 1987 correction or the mid-1990’s correction; both lasted longer than anyone really wanted to see. Solution: Resolve that marketing takes money to do it effectively. Spending money on marketing is as essential as putting nitrogen on a corn crop or herbicides on a soybean crop. Yes, that money can be saved instead, but yields would be drastically reduced. This same concept must be applied to marketing. Producers must learn to sell strength and buy weakness. Have an exit strategy if a bullish price event occurs. Be satisfied with a modest profit when it is offered, but be prepared to be a multipleyear seller when a weather event occurs

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like the one in 2012. The brass ring we are all going for is to sell aggressively when exceptional profits are offered due to an extreme supply reduction fear event! How to do this. Give up on looking for someone to help guess when the high will be made. Granted, technical and seasonal analysis can help refine the selling decision, but it can only get you in the ball park. The big problem is controlling your emotions–greed, fear and hope. My solution is to have a very structured plan of attack if the market moves higher or lower than expected. The key, however, is being practical when setting selling targets; design flexibility in the marketing tools used to sell expected production in order to benefit from a bullish price event if and when it should occur. If you are interested in this approach, call me (800-832-1488). ■ Step 1 D ecide now if you want to use a cash-call strategy or put roll-up

strategy next spring. Step 2 D ecide on the downside price target where no action can be

allowed, as well as the upside price where you will accept sales. Step 3 Determine time deadlines when pricing decisions must be made

and cannot be ignored due to low price. Step 4 Decide what tool [cash, futures, options, etc.] to use and how to

manage basis and spreads to improve the net selling price. Step 5 W hen will the plan have to be re-evaluated based on changes in

the fundamentals and not fear low returns.

ABOUT THE AUTHOR

Bob Utterback is the President of Utterback Marketing in New Richmond, IN. Call Bob for strategy updates at 877-898-4324. Email comments on Outlook to utterback@utterbackmarketing.com.

The opinions stated herein are not necessarily those of GreenStone Farm Credit Services. This material has been prepared by a sales or trading employee or agent of Utterback Marketing Services, Inc. and is, or is in the nature of a solicitation. This material is not a research report prepared by Utterback Marketing Services, Inc. By accepting this communication, you agree that you are an experienced user of the futures markets, capable of making independent trading decisions, and agree that you are not, and will not, rely solely on this communication in making trading decisions. Distribution in some jurisdictions may be prohibited or restricted by law. Persons in possession of this communication indirectly should inform themselves about and observe any such prohibition or restrictions. To the extent that you have received this communication indirectly and solicitations are prohibited in your jurisdiction without registration, the market commentary in this communication should not be considered a solicitation. The risk of loss in trading futures and/or options is substantial and each investor and/or trader must consider whether this is a suitable investment. Past performance, whether actual or indicated by simulated historical tests of strategies, is not indicative of future results. Trading advice is based on information taken from trades and statistical services and other sources that Utterback Marketing Services, Inc. believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades

Fall 2018 — Partners

CULTIVATE A PRODUCTIVE MINDSET By Suzanne Pish and Tom Cummins, MSU Extension

THERE ARE MANY FACTORS IN AGRICULTURE THAT FARMERS HAVE NO CONTROL OVER. BEYOND THE UNCERTAINTY OF THE WEATHER, DESTRUCTIVE CRISES SUCH AS DISEASE OUTBREAKS AND SHORT-TERM INCIDENTS SUCH AS MACHINERY BREAKING DOWN OR ACCIDENTS CAN AND DO OCCUR. ONE POWERFUL FACTOR THAT WE ALWAYS HAVE THE OPPORTUNITY TO CONTROL, HOWEVER, IS OUR MINDSET. Farmers and those within the agricultural industry have a tendency to be eternal optimists, but with all of the variability in agriculture there are times when we can become overwhelmed and stressed more than normal. Having the right mindset can help increase productivity and resiliency, so we are better prepared when times are tough, and more able to manage our farms and take care of our families and ourselves. Think of your mindset as a free tool you can use to save

time and energy, and get the most out of what you do. MINDSET TACTICS Use Self-Talk The body hears what the mind thinks. So choose your thoughts with purpose. Tell yourself that you can overcome any challenge. You can adapt. You have come through rough times before. You can do it again. You can’t always avoid difficult situations, but you can choose the thoughts you have when you experience them. Try choosing three words to tell yourself to help maintain the

mindset you want – like calm, capable and controlled. Use Your Breath When faced with a challenge, first use your breath. Deep breathing calms the mind and can help you focus. It can also reduce chronic pain and improve sleep. Try breathing deeply five times, releasing the air slowly. Combine deep breathing with self-talk to boost productivity and stay on task. Use Acceptance

• 80 percent of repetitive thoughts are negative. But they don’t have to be. • A brisk 10-minute walk reduces the amount of cortisol (stress hormone) in the brain by 50 to 70 percent To learn more visit msue.msu. edu/managingfarmstress RESOURCES “Stress Free For Good: 10 Scientifically Proven Life Skills for Health and Happiness” by Fred Luskin and Ken Pelletier

When things are beyond your control, the most productive step you can take is to accept it. Making acceptance a part of your mindset can save you time and energy by letting you focus on the solution instead of getting frustrated by the problem. Try making the word “accept” a part of your selftalk and using deep breathing as a time to pause, accept and begin problem-solving.

“Full Catastrophe Living” by Jon Kabat-Zinn

FACTS

The opinions stated herein are not necessarily those of GreenStone Farm Credit Services.

• The human mind has 70,000 thoughts each day. That’s 70,000 opportunities.

“Mindfulness: Finding Peace in a Frantic World” by Mark Williams and Danny Penmanship “The Book of Forgiving” by Desmond and Mpho Tutu “The Miracle of Mindfulness” by Thick Nhat Hanh. ■

• The typical brain is about 2 percent of your body weight but uses 20 percent of your energy.

Partners — Fall 2018

Creation Requires Destruction Every act of creation is first an act of destruction. – Pablo Picasso

By Alan Hahn

I DON’T KNOW THE CONTEXT IN WHICH THE FAMOUS ARTIST PROVIDED THIS STATEMENT. HOWEVER, WHEN YOU CONSIDER THIS STATEMENT IN THE JUXTAPOSITION OF OUR TECHNOLOGICALLY-ADVANCED LIFESTYLE, IT IS MOST FITTING; YET, I THINK IT’S LOST ON MOST CONSUMERS.

We live in a peculiar time in history. We are, in many ways, seeing the fruition of earlier visionaries who sought a better way of life for mankind. From Tesla and Edison, to Ford and Borlaug … all had visions of more convenience, less labor, more productivity, and in the case of Borlaug, nutrition for the under and malnourished around the globe. Realization of these visions, however, is not always greeted with elation. Rather, the response to our advancements is often one of angst and a longing to return to an idealized version of the past that only exists in our minds, storybooks, and Norman Rockwell paintings. Long before we were a technologicallydriven society, we used muscle power, and we recognized the creation-destruction tradeoff. If you ask the average person today about their “footprint” on the planet and using natural resources to “create” a better way of life, you may well be greeted with either bewilderment or disdain for using natural resources. Destruction, after all, is what the big companies do. We don’t likely consider how the countless products and services that we enjoy might entail a degree of destruction. Blinded by our Own Success

We are the victim, so to speak, of our own technological advancements. Tearing down, refining and building up defines human history. However, due in large part to how efficient and innovative we have become in the destruction and creation process, we have removed human involvement to such an extent that the process is foreign to most.

Fall 2018 — Partners

For those working in what can be the gritty and, at least for some, unappealing process of “destruction” so that urban dwellers might enjoy newly “created” lifestyles, you may be on the receiving end of righteous indignation.

In 1900, 40 percent of the workforce worked in agriculture. Today, thanks to all that incredibly-well-engineered and technologically-advanced destruction and creation, less than 2 percent of the labor force are in production agriculture.

The chemistry that gives us our drycleaned clothing, refrigerated food, cosmetics, ink cartridges for our printers, life-saving airbags and pharmaceuticals, fiber optics, purified drinking water, and even nutritious food for our fur babies is not appreciated because it is foreign to the large majority of consumers.

Today, Americans consume more nutritious food at lower costs than any time in history. In 1900, it cost more than 40 percent of our income to eat; now it is less than 15 percent. This does not just magically happen. It is the result of agricultural advancements. The same advancements that have reduced work force, increased productivity, increased crop, milk, and meat yields while driving down costs, are creating a generation that cannot recognize (and lack appreciation for) how these creations are possible.

Today’s conveniences are nothing short of remarkable. A half-a-generation ago, most of us could not have imagined the products we find on the shelf or available on-line. Have we collectively lost the appreciation for the necessary work (destruction) that allows our lifestyle? We enjoy, but do we acknowledge, that there is a lot of “destruction” that takes place every day so that the “creation” of our conveniences and new found “needs” can be delivered to our doorstep via digital orders online? What’s Around the Corner?

Could this disconnect explain why modern agriculture is at times maligned and often misunderstood by some consumers who may lack recognition and appreciation of our privileged lives? Similar to our removal from the manufacturing process, so too are we removed from the agricultural practices. I recently read that the average person is six generations removed from farm life.

Consumers go to the supermarket, pick what they need off the shelf, pay with an app on their cell phone, and drive home in their hybrid car – all while telling Alexa to adjust the thermostat in their home so it will be the optimal temperature when they arrive.

Will it be those with the loudest voice? Those with the most money? Those with the right connections? Those with the best public-relations team? Will those dictating this future consider the subsequent, lifealtering consequences that result from these decisions? The challenge for producers, those involved in the process of creation of all that we have, gets steeper with each advancement that puts the consumer further from the process. This distant consumer needs to be educated so we do not mistakenly destroy the golden goose of technological and agricultural advancement that we enjoy today. Moreover, the education cannot be all science, statistics, and numbers. This consumer must be engaged on an emotional level that addresses their concerns. Science can win in the legal courts, but rarely in the court of public opinion. ABOUT THE AUTHOR

What’s Around the Corner?

Alan Hahn is an Environmental Professional and Business Development Manager at The Dragun Corporation in Farmington Hills, Michigan.

Creation requires destruction...we have witnessed this since the dawn of mankind.

The opinions stated herein are not necessarily those of GreenStone Farm Credit Services.

The question now is who will dictate our future choices with respect to what is “acceptable creation and destruction?”

Partners — Fall 2018

Megatrends 2018 to 2025 By Dr. David M. Kohl

THE TERMS “PERCEPTUAL ACUITY” AND “20/20 FORESIGHT” STUCK IN MY MIND DURING AN IMPROMPTU BRAINSTORMING SESSION AT A RECENT AGRICULTURAL CONFERENCE. AT THIS CASUAL MEETING, THE INTELLECTUAL ENERGY FLOWED LIKE WATER, AND BOUNCED AROUND TO A WIDE RANGE OF TOPICS. I JOTTED DOWN NOTES ON A NAPKIN, CAPTURING SOME OF WHICH WERE MACRO FACTORS WHILE OTHERS WERE AT THE GRASSROOTS LEVEL. LET’S TAKE A LOOK AT SOME THOUGHTS THAT EMERGED FROM THIS INFORMAL POWER SESSION.

Marketplace Disruption

The major retail market disruptor, Amazon, recently expanded into food. This marks only a beginning of the splintering of the marketplace that will challenge food processors, agribusinesses and large cooperatives. Actually, the brewing industry is a good example of this disruption. Even with the market dominance of InBev’s Budweiser and Molson Coors’ MillerCoors, these industry giants are being challenged by microbreweries. Of course, this trend is driven by the consumer who seeks lifestyle experiences with a blend of technology and personalization. The local, natural and organic markets will continue to grow both domestically and internationally. Suppliers will need to develop ways to avoid commercialization and establish a sustainable market with a specific segment of the population.

These consumer-driven changes in food retail can be easily observed while traveling, with non-GMO pretzels on one flight and glutenfree potato sticks on another. The Dancing Deer Baking Co. chocolate chip cookies are made with eggs from cage-free chickens and real butter. These examples are just tastes of what is yet to come in the consumer marketplace for food. Further, in this marketplace, there is room for both GMO and nonGMO, organic and natural, and products linked to specific ethnicities or segments of society. These varying preferences will accelerate marketplace change and drive profits for the foreseeable future, and at least the next decade. NGOs

Non-government organizations (NGOs) will help shape how agriculture operates in the coming years. Ranging from animal welfare to environmental concerns, the interests of the public and various NGOs must be built into the equation for agriculture. For examples, the closing of Ringling Bros. Circus after 146 years and the protests to the movie A Dog’s Purpose show the breadth and depth of influence from these organizations as well as consumer support. Like much of the world’s population, these groups are somewhat disconnected from the production of food, fiber and fuel that drives agricultural economics, which will require education and collaboration. Policy

Policy and legislative changes such as the new U.S. Farm Bill and tax reform will undoubtedly impact agriculture and rural America, and at an economically sensitive time. Other top legislative issues for agriculture are international trade, healthcare and crop insurance. As always, funding will be important, including for programs to assist young farmers and ranchers, as well as those that support processing and infrastructure for local food 15

Fall 2018 — Partners

movements; both critical agricultural sectors. On the human resource side, qualified individuals with the Farm Service Agency (FSA) along with Cooperative Extension personnel will be essential for agriculture’s continued progress. Incredibly, even with stressed economics, agriculture is also seeing the re-emergence of new business models that include multitasking agrientrepreneurs in both domestic and international markets. Technology and Innovation

In the hands of more astute managers, technology will help maximize resources and increase efficiency, both necessary for U.S. agriculture to continue as a global player. With one in five dollars of net farm income generated through international trade, a disruption with trade partners or trading routes can wreak havoc on the industry as well as specific producers very quickly. Proactive strategies such as marketing and risk management plans need to be backed up with working capital and core equity. These precautions are necessary to bridge gaps in profits, or at the other end of the spectrum, to proactively position the business for opportunity. As one example, recently a young producer cut 3,000 acres of marginally profitable, rented ground. On the remaining land, he used information in databases and tracking devices to analyze his profits by field. This practice yielded over $250,000 in net income. Millennial and Gen Z Generations

While baby boomers are moving on to their next chapter in life, those born between 1995 and 2012 are moving in. Approximately 83 million millennials and 73 million members of Gen Z have begun to enter the workplace and consumer markets in force. As generations before them, these groups will drive consumer, political and societal trends. Workplace culture will be a key factor for attracting and retaining the emerging generations from farm gate to corporate offices. Gen Z will be quite independent, working in organizations and businesses

that have social causes. They will thrive on problem solving and meaningful work. This group will start to challenge colleges and universities on the cost of education, and will increasingly desire customized degrees with a blend of online and face-to-face education. This group will also be “phigital,” treating a meeting on Skype the same as one in person. On the other hand, millennials who have urbanized will reconnect with rural America through short, interactive experiences. The growth of small recreational vehicles and tiny houses is only the beginning of coming trend shifts with these new generations as they seek extremes and develop a balance of nature and technology. The New Workforce

Involved in education for nearly 40 years, I see a seismic shift on the horizon. During the last 30 years of agricultural banking and lending schools, participants generally came from agricultural backgrounds with degrees from well-known agricultural schools. Most were also male. Today, a majority of the graduates are from nonagricultural programs; there are more females and less farming backgrounds. To keep pace with these trends, training and education programs must be reorganized. More quick-learning modules on different sectors of agriculture as well as a focus on the emotional intelligence side of the business, such as dealing with different personalities, are both needed. Agricultural lending and to some extent the agribusiness industry will thrive on the following “Cs”: A workplace culture that is caring and will also CULTIVATE professional growth. Agricultural lenders must demonstrate the ability to CALCULATE and analyze data, and also critically think how the data combines with the “intangibles.” Next, the lender must COMMUNICATE the findings both internally and externally to the institution as well as the customer. Today’s agricultural environment calls for learning opportunities such as internships with practical hands-on assignments, mentor and mentee relations that provide 360-degree feedback, growth assignments and combined customer and lender education. Thus, with this perceptual acuity, or insight into the future, what does one need to thrive? 1. Balance the organization between the head and the heart. The head represents the

bottom-line numbers, while the heart is the work culture environment that brings out the passion. 2. Think globally, but bring it down locally. This requires one to be interdependent,

often using an advisory team or other peer groups to mix things up and stay on top of trends. 3. Focus on the variables that one can manage. Manage around the rest of the noise and

clutter from the “uncontrollables.” 4. Commit to education and learning. Then, do something with it! Remember the old

adage “if you’re not learning, your neighbor is.” And remember that neighbor could be in India, China or anywhere. 5. Agriculture is a people business. Your net worth financially and mentally is directly

related to your network of colleagues, mentors and friends. ABOUT THE AUTHOR

Dr. 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. Dr. Kohl has traveled over 8 million miles throughout his professional career and has conducted more than 6,000 workshops and seminars for agricultural groups such as bankers, Farm Credit, FSA, and regulators, as well as producer and agribusiness groups. He has published four books and over 1,300 articles on financial and business-related topics in journals, extension, and other popular publications.

The opinions stated herein are not necessarily those of GreenStone Farm Credit Services.

Partners — Fall 2018

CONNECT

NEWS:

Customer Satisfaction Remains High During Challenging Economic Times In an annual survey conducted by Michigan-based Advantage Research and Analysis, GreenStone Farm Credit Services continues to score above industry averages with a 94 percent customer satisfaction rating. The 2018 rating marks 14 consecutive years of a 94 percent or higher grade for the member-owned cooperative. “Achieving results like this takes a team effort and is a reflection of the hard work and dedication of all GreenStone employees,” says President and CEO Dave Armstrong. “Maintaining this level of satisfaction from customers who are facing tremendous financial challenges is especially encouraging and reflective that we are serving the needs of our customers.” In addition to providing in-depth analysis to confirm areas customers feel satisfied, it also provides insight into key focus areas for the future. The survey gives customers the opportunity to comment on their individual experience with the cooperative. GreenStone customers from Michigan and Wisconsin participated in the annual survey. ■

GREENSTONE COMMUNITY GARDEN Providing locally grown produce to the community while helping tell the important story of agriculture is the driving force behind the GreenStone community garden at the Wisconsin Timber Rattlers baseball stadium. With help from a local FFA chapter and Master Gardeners Association, the Wisconsin Timber Rattlers organizes a donation garden each year for the past five years benefitting local food banks. This year, produce from the garden is being donated to the St. Joseph’s Food Pantry in Menasha, Wisconsin, which is about 15 minutes away from the ballpark in Appleton, Wisconsin. “So far this summer, we have donated about 110 pounds of produce to the food pantry,” marketing manager Seth Merril shared. “The food pantry distributes the produce to local families in need.” Getting involved in our local communities is an important value to GreenStone. Staff 17

Fall 2018 — Partners

Farmer Veterans Storm Capitol Hill

members from the Little Chute branch also help tend to the garden and harvest the produce throughout the gardening season. “Working with the Timber Rattlers on the GreenStone Garden allows us to demonstrate the importance and impact of local agriculture,” said Amanda Kroll, a financial services officer in GreenStone’s Little Chute branch. “Providing food to those in need, while working with other organizations and people in the community, is a great opportunity to get involved supporting the community and future agricultural leaders, such as the Freedom High School FFA as they help maintain the garden.” The garden consists of tomatoes, banana peppers, jalapeno peppers, lettuce, radishes, cucumbers, watermelon, yellow onions and squash. “The garden is truly beneficial to everyone involved,” Amanda said. “We are proud to be part of it.” ■

In July, Farm Credit and Farmer Veteran Coalition were joined in Washington, D.C. by more than 30 veterans, including GreenStone board member Jed Welder. Together the organizations celebrated their service and helped policymakers understand the importance of programs that enable returning service members to forge meaningful careers in agriculture. Their stories emphasize the purpose men and woman can find in producing our food, fuel and fiber. In addition to a briefing with House Agriculture Committee Chariman Mike Conaway, four farmer veterans, including Welder, also shared their journeys during a panel discussion at the Senate Agriculture Committee. Policymakers and staff heard about their transition from serving our country to feeding it, the challenges they faced and how labels like Homegrown by Heroes can encourage more veterans to transition into farming. Welder shared is passion for farming and appreciation to the Farm Credit system saying, “There’s no better place to raise a kid than on the farm.” ■

Office Updates The Ionia branch is finishing Phase 1 of their renovation project and has moved staff to the lower level to start Phase 2 on the main (upper) level. All renovations are estimated to be complete by early March 2019. Reminder: Customers will enter using the lower level lobby off State Road during the second phase of the remodel. The construction documents are complete and pending site plan review and approval for GreenStone’s new Sandusky branch. It is expected to break ground at the site in October 2018. ■ GreenStone’s Annual Deer Challenge GreenStone is calling all hunters in northeast Wisconsin and Michigan’s Upper Peninsula to participate in the cooperative’s annual GreenStone Deer Challenge. The competition gives hunters a chance to win prizes, including cash awards, for their successful hunts. The challenge runs through November 30, and entry forms will be accepted until December 5, 2018. The contest features an adult class, as well

into a drawing to win a game camera or a $25 Cabela’s gift card. Trophies will also be presented to all hunters who harvest their first deer. To qualify, entrants must bring their deer or completed entry form with witness signature and photo to GreenStone’s Clintonville, Coleman, Little Chute, Manitowoc or Sturgeon Bay branch during normal office hours. Onsite deer will be photographed and scored by the GreenStone staff, and stories will be documented. ■ GreenStone Continues a Strong Financial Position in 2018 GreenStone Farm Credit Services recently released its second quarter stockholder report, detailing earnings of $40.1 million for the three months ended June 30, 2018. Comparatively, net income was $33.4 million for the same period last year. Year-to-date earnings for the first half of 2018 were $85.9 million, a 20 percent increase over the first six months of 2017. Owned and managed loan volume totaled $8.6 billion at June 30, 2018. “When compared to the second quarter of 2017, our owned and managed total loan volume was up 6.1 percent,” said Travis Jones, GreenStone’s chief financial officer. “The increase was driven by growth in all market segments but led by our capital markets and country living segments. Growth in these segments shows the diversity of our business and better allows us to remain in a solid position to serve our members. The financial strength of our member-owned cooperative is highlighted by our patronage program. Over the last 13 years we have returned $318 million in patronage dividends to our memberowners.” Other numbers of note from this quarter’s stockholder report include:

as a junior buck class for hunters 17 years of age and younger. Grand prizes will be awarded in each class:

• Operating expenses remained well controlled with an efficiency ratio of 35.6 percent.

Adults (18 years and older)

• Acceptable loan credit quality remained very manageable at 93.4 percent.

• First Place - $400 • Second Place - $200 • Third Place - $100 Junior Buck (17 years and younger) • First Place - $200 • Second Place - $100

DAIRY REVENUE PROTECTION INFORMATION AVAILABLE

• Total members’ equity increased $60.8 million from December 31, 2017 to $1.6 billion. The complete second quarter stockholder report can be viewed online by visiting: www.greenstonefcs.com. ■

Along with the grand prizes, all entrants who harvest a deer with any legal gun, bow, muzzleloader or crossbow will be entered

The new Dairy Revenue Protection (Dairy-RP) made available to producers in October offers a new tool for risk management for dairy producers. The program provides protection against an unexpected decline in revenue (price and/or yield) on the milk produced from dairy cows. It covers the difference between your final revenue guarantee and actual milk revenue during each quarter of the year. This program has many features, which allow farmers to customize their plan to their operation. Earlier this fall, GreenStone hosted a webinar with Dr. Chris Wolf, MSU professor in the Agriculture, Food and Resource Economics Department, for all dairy farmers in our area to provide important information about the new program, as well as a comparison between other available risk management tools. The recorded webinar is housed on the GreenStone website and can be accessed at anytime. We invite you to go to greenstonefcs.com to view the recording. Additionally, GreenStone invited Dr. Chris Wolf to meet with our team of crop insurance and dairy experts to help them better understand the details and program benefits. This helped deepen their knowledge to be equipped to help customers select the best options for their individual farms. If you have questions or would like to better understand how the Dairy-RP may fit your current management plan, reach out to any GreenStone branch. ■

Partners — Fall 2018

BEHIND THE SCENES– Within the GreenStone Information Systems department is a team of individuals dedicated to the development and maintenance of the systems used by our customers, including MyAccess, our website and online loan requests. Here are two of the individuals dedicated to making sure our customers have a positive online experience with us. Matthew Rigdon Application Developer Years of Service: 1.5 East Lansing, Michigan What do you enjoy most about your role at GreenStone? I enjoy having the opportunity to work on and improve software that impacts both our staff and customers. Each additional feature we build or change is meant to improve the overall experience for everyone. It is not hard to stay motivated to deliver quality when you know that your day-to-day work affects so many people.

What changes have been incorporated in your role to meet evolving customer needs? With technology constantly evolving, we do our best to stay cutting edge with our software and the features that we offer our staff and customers. To ensure we are meeting everyone’s needs, a lot of what we build and improve on comes as direct feedback from staff and users. We use their feedback to build meaningful additions and updates to our websites and software. What do you enjoy doing in your free time? I have a wide range of hobbies spanning from weight lifting, to running, reading, and spending time with my wife, family, and friends. I also like to get outdoors whenever possible. There is nothing else like going for a hike in the wilderness! Teresa Winacoff Information Technology Manager Years of Service: 14 Location East Lansing, Michigan What do you enjoy most about your role at GreenStone? I enjoy collaborating with GreenStone and other Farm Credit associations to

Fall 2018 — Partners

develop an online system (My Access) that meets our external customer and internal customer needs. Our goal is to provide easy access to tools and information our customers find beneficial. What changes have been incorporated in your role to meet evolving customer needs? My role works closely with branch staff and staff from our partner Farm Credit associations to incorporate feedback received from customers and branch staff. The feedback is discussed as a team where we brainstorm ways to improve our application or add new components being requested. What do you enjoy doing in your free time? Most of my free time is currently spent working on my kitchen and planning the next step of how I would like to remodel the space, spending time with my significant other, family and friends. I also enjoy physical fitness activities, working out, 5Ks and obstacle runs. I have completed many events with friends, family and co-workers. I also like to garden in the warmer months. ■

Mark Your Calendar... Pause for Applause... NOVEMBER

1. Pyles Named 2018 Outstanding Young Dairy Cooperators Paul and Nancy Pyle of Zeeland, Michigan, were selected as the state winning 2018 Michigan Milk Producers Association Outstanding Young Dairy Cooperators (OYDC). Jeremy and Deanna Beebe of Alger, Michigan, were selected as the runner-up cooperators. Selection of the OYDC is based on the applicant’s farming operations, farm-related and community activities and demonstrated leadership abilities.

2. Michigan Apple Leader Receives National Recognition Mike Rothwell, president and CEO of BelleHarvest Sales Inc., was named the 2018 Apple Person of the Year. The Packer Editor Tom Karst presented Rothwell the award at the U.S. Apple Association’s annual Apple Crop Outlook and Marketing Conference Aug. 23 in Chicago. Rothwell has been a long-time apple leader in Michigan and the United States. Rothwell’s leadership was instrumental in unifying Michigan with U.S. Apple and instituting a steady stream of revenue through his promotion of the referendum vote, industry leaders said.

November: Nancy Gross Linda Miner Barbara Steinfeldt Marsha Wilhelm Garrett Anderson December: Jill Meridith Kandice Brown

GreenStone Offices Closed (22-23) In honor of Thanksgiving

Michigan Farm Bureau Annual Meeting (27-29) Amway Grand Plaza Hotel & DeVos Place, Grand Rapids, MI

Wisconsin Farm Bureau Annual Meeting and Young Farmer and Agriculturist Conference (30- Dec. 4) Kalahari Resorts and Conference Center, Wisconsin Dells, WI

Help GreenStone congratulate and thank these staff who are celebrating an employment milestone. From five to 40, the years represent the dedication and service all employees provide our members.

(25) (25) (15) (10) (5) (5) (5) (5)

Michigan State University AutumnFest Michigan State University Pavilion, East Lansing, MI

DECEMBER

SERVICE ANNIVERSARIES

October: Julie Feuerstein Nancy Kalies Jennifer Bombardt Lisa Smith Mary Grace Hodak Amanda Kutchey Scott Martin Courtney Vance

Great Lakes Fruit, Vegetable and Farm Market Expo/Michigan Greenhouse Growers Expo (4-6) DeVos Place Conference Center, Grand Rapids, MI GreenStone Offices Closed (24-25) In honor of Christmas Eve and Christmas Day

JANUARY

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GreenStone Offices Closed In Honor of the New Year

Dairy Strong Conference (23-24) Monona Terrace, Madison, WI

Great Lakes Crop Summit (30-31) Soaring Eagle Resort, Mt. Pleasant, MI

(25) (10) Find us on social media for the latest events, member updates and industry information.

Partners — Fall 2018

LAND PRICES REMAIN STABLE Each year GreenStone Farm Credit Services compiles market data along with customer data to determine annual benchmark land values to be used in completing accurate and current appraisals. The varying agricultural land uses, as well as recreational land and home sites, and commercial and industrial developments, require values to be determined on a localized level. This benchmark analysis, conducted by GreenStone’s internal audit team, continues the appraisals first reported in 2006. Regions reflected in the report cover the entire state of Michigan and northeast Wisconsin. This year’s report found prices for good farmland remained relatively stable throughout the territory, with a few outliers in high value areas. The year-over-year change in values ranged from a 7.5 percent decrease in the northern thumb of Michigan to 6.3 percent increase in southwest Michigan. Land used for recreational purposes in northern Michigan saw a 12.5 percent increase in value. Traditional Cropland The benchmark study includes several traditional row crop parcels across the Lower Peninsula of Michigan and northeast Wisconsin. Values are determined for 80-acre parcels. “The continuing trend in our territory is that good quality farmland prices remain remarkably steady. Demand for land is still dependent largely on location. If it is next to a farm with a capacity to expand, it will sell with little negotiation for price,” says Joe Hickey, vice president and chief appraiser with GreenStone.

Fall 2018 — Partners

The western region of northeast Wisconsin saw the third consecutive year of stable benchmark value, following consistent growth the previous nine years. Since 2006, an 80-acre cropland parcel has increased from $197,000 to today’s value of $375,000. In the southeast part of the northeast Wisconsin territory, cropland value decreased for the third year after 12 and 18 percent increases in 2014 and 2015, to today’s appraised value of $520,000. In Michigan, there was a 6.3 percent increase in the southwest, following a 7.7 percent decrease in 2017 bringing the value to $408,000. The midMichigan area remained stable with no change at $424,000. Cash crop land in southern Michigan went unchanged for the third year holding at $280,000. Michigan’s northern thumb area continues to hold the highest value of the regions at $576,000 ($7,200 per acre), marking a 7.5 percent decline this past year. The Saginaw Valley cash crop land in Michigan, on a per acre basis, had a slight 0.7 percent drop to $6,375, coming down from the highest value recorded in 2014 at $7,406. “Lower corn and soybean prices have stabilized the base rental rates in the Thumb region to the $200 to $225 range for properties with higher productive soils,” Hickey says. “We expected rates to decline, however with the continue competition for land, land owners have no motivation other than relationship loyalty to lower rates.”

Dairy The appraisal of the Michigan dairy with 1600 freestalls on a 40-acre site showed a 5.5 percent decline to $4,500,000, down from the 10-year high of $5,200,000 in 2015. The 60 tie-stall and 40-acre site in Wisconsin showed no change for the second year, holding at $318,000. Recreational The 80-acre recreational benchmark land surveyed in northern Michigan saw a second year of increased value, coming in at $144,000 ($1,800 per acre) up from $128,000 in 2017. According to Hickey, recreational tracts for hunting, fishing and non-consumer uses are in demand in Wisconsin and northern Michigan. Transitional GreenStone monitors three areas in the transitional land category: southeast Michigan (Ann Arbor area); Lapeer County, Michigan; and Brown County, Wisconsin. Transitional land is defined as a property between uses with the current use likely to change. The 40-acre tracts in Michigan showed modest gains with the land in the southern part of the state increasing 1.3 percent over 2017, to a value of $320,000 for the 40 acres; this increase follows double-digit growth in 2015 and 2016. Transitional land in Michigan’s thumb (Lapeer County) showed a slight decline of 2.0 percent to $160,000. ■

You voted – thank you – and you selected “Hunger and Nutrition” as our focus for 2018. As a result, we are excited to announce a companywide campaign for both employees and customers to raise money for Michigan Harvest Gathering and Feeding America Eastern Wisconsin! Through the Member Grown Outreach initiative, GreenStone has committed a combined matching fund donation of up to $20,000 to these organizations. Steps to Be a Part of the Impact: • Donation Timeframe: October 15 – November 16, 2018 • Matching Support: Earn a $1 for $1 donation match, up to a $20,000 total GreenStone donation

FEED THE COMMUNITY AND DOUBLE YOUR DONATION

• Participating Organizations: Donations can be made online to either of the two participating organizations, matching funds will be granted to those donations made as part of the GreenStone campaign Michigan Harvest Gathering – https://donatenow.networkforgood.org/somfeedmichigan

One year ago, we shared the opportunity for our members to vote on a specific area GreenStone would concentrate additional community support through our new Member Grown Outreach Program. (Remember the “Vote Today” ballot in the fall 2017 issue of Partners and the ballot boxes in our branch lobbies?)

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Thank you for purchasing my 6th overall market lamb in the 2018 Sale-abration at the Michigan Livestock Expo. Your support of our youth is very appreciated. —Talan Hiemstra

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It has been a joy to me to be a part of this organization my whole career. Agriculture and the people in it have been and are such a good industry, and I have been lucky to be a part of a company that understands that.

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– You must select ‘GreenStone Farm Credit Services’ from the “MHG Partners Organizations” dropdown on the giving page Feeding America Eastern Wisconsin – https://ampyourgood.com/user/campaigns/3178 – You must use this URL to be directed to the GreenStone campaign ■

Thank you for selecting me to be a recipient of the GreenStone Farm Credit Services scholarship! I will be attending UW-Platteville this fall to major in Animal Science with an emphasis in meat and livestock.

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On behalf of the Wisconsin Association of Agricultural Educators (WAAE), we would like to extend our appreciation and a big thank you for sponsoring our WAAE Professional Development Conference in June.

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On behalf of the Michigan Cattlemen’s Association, I would like to thank you for your sponsorship of the MCA Summer Round-up. The program was well received by all attendees and your sponsorship helped to make it all possible!

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—Jeff Kala, MCA president

Thank you so much for being a state convention partner and supporting many aspects of the convention and other FFA programs. Your partnership allows me to continue to grow and develop as a dedicated student and strengthen my leadership skills. —Lauren Jones, Darlington (WI) FFA Chapter

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—Rebecca Wirkus, WAAE president.

— Tom Wilson, GreenStone Retiree, former VP of Commercial Lending

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—Kimberly VanDasel

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...Candid Comments

Partners — Fall 2018

The GreenStone Story:

Your Digital Toolbox AS A CUSTOMER-FOCUSED LENDER, WE STRIVE TO DELIVER THE PRODUCTS AND SERVICES YOU NEED TO BE SUCCESSFUL IN A WAY THAT MEETS YOUR EXPECTATIONS. REALIZING RELATIONSHIPS, WITH CUSTOM SOLUTIONS, REMAINS A CONSTANT VALUE WE PROVIDE TO OUR MEMBERS, WE ALSO KNOW, MORE AND MORE CUSTOMERS ARE LOOKING FOR ONLINE, EASILY ACCESSIBLE TOOLS AND METHODS OF COMMUNICATION. AS WE WORK TO CONTINUE TO MEET THE NEEDS OF BOTH, WE CONSISTENTLY UPGRADE AND ENHANCE OUR ONLINE DELIVERY AND SERVICES. BECAUSE OF THE CONTINUAL EVOLUTION, YOU MAY NOT BE AWARE OF ALL GREENSTONE HAS TO OFFER. THE FOLLOWING DESCRIBES THE ONLINE OPTIONS AVAILABLE TO YOU. GreenStone’s website

Following a recent launch of our new website, these enhancements are now available to you: • More intuitive navigation based on product and purpose • Easy access and better organization of all resources • Updated loan calculator, including a comparison option • Web-based Open Fields Blogs and Partners articles that are now more searchable and RSS feed enabled to automatically receive new posts by e-mail • More engaging and purposeful photography and graphics • A new interactive careers site

Fall 2018 — Partners

• My Alerts: Take control and establish custom alerts that can be sent to any email or mobile phone number you desire. • Online Banking: Allows you to manage your accounts 24 hours a day, view account history, details and drafts, transfer funds, and schedule payments. • My Profile: Easily manage your contact information, password, security questions, authentication image and phrase, and subscriptions from one location. Mobile Online Banking:

Once you’ve created your My Access account, you can also gain mobile access your loan information from our convenient app, available in the Apple and Google Play stores. • Make a payment from your linked bank account • Utilize your devices camera to deposit checks into your operating loan account from anywhere • Transfer funds between accounts • Make or schedule disbursements • Monitor account balances and upcoming payment deadlines

My Access Functionality

Funds Held

Now designed to improve usability and provide a consistent experience with GreenStone’s new website, My Access continues to deliver online benefits with the same customer-based functionality and features:

Combining an interest-generating account with a term-loan at GreenStone gives you convenience and flexibility managing your future financial obligations related to your loan. Similar to a savings account, Funds Held gives you the ability to pay future financial obligations related to your loan, such as principal and interest payments, or for the payment of insurance premiums, taxes, or other related items.

• File Exchange: A two-way communication tool where documents can be sent and received securely between you and GreenStone staff members.

• My Documents: View and download specific documents GreenStone has securely stored, and when you sign up to receive bills and statements electronically, they are easily assessable here.

Additionally, money can be used for new purchases rather than increasing your existing loan amount. Through the Funds Held program, your dollars in the account generate an estimated rate of 3 percent below the related loan interest rate. The balance in your Funds Held account can not exceed the principal of the existing loan. Farm Cash Management®

Integrating your operating loans with short-term investments through a GreenStone Farm Cash Management® account gives you the dual benefit of easy access to operating funds while potentially

minimizing net interest costs. When your Farm Cash Management account is activated and funded, money drawn will be pulled from the investment account before advancing withdrawals from your GreenStone operating loan. Access to your funds is easy through My Access. Apply Online

When you’re ready to live the country life, take advantage of our fast and convenient online loan request. The secure process takes approximately 15 minutes to submit information about yourself and any coapplicant(s) on the loan request. Be ready to provide details regarding your property, income, liabilities, and assets and we’ll get

back to you quickly to take the next step! You can apply for the following country living loan products online: • Country home • Home construction or remodel • Land for a future home • Land for outdoor activities • Refinancing property • Part-time farm For more information on all the convenient online tools available to you, visit our webpage or contact your local branch. ■

Partners — Fall 2018

It starts with building the team. The “Rebuild Rural” coalition, led by the Farm Credit Council, is a diverse group of interested parties focusing on addressing rural community issues. This group has connected with policy leaders to meet with the commitment of the White House to address this issue with the help of Congress. The Farm Credit Council has been able to attract national, multistate and project focused powerhouses to help lead these efforts and ultimately make a difference. Some of the broad topical issues that have brought this coalition together include: agriculture research, healthcare, broadband, housing, energy, transportation, financing, and water. Each of these topics brings a broad array of organizations and issues. Unification started with conversation and reporting, then required action with money. More of both will be necessary. Regulatory burdens or reform on delivery mechanisms will have to continue. Overall, the effort will require energy and engagement to sustain the growing momentum. More than 220 organizations from across the country have come together with unique solutions to help both create and support the clear vision of needs with unified strategies. Together, the focus on rural infrastructure has been elevated. Funding with respect to these issues has been met with historical levels of federal dollars in many programs, particularly water and energy development. Yet, more dollars will be necessary for communities through state rural directors in the USDA. Roundtables creating better teams of cooperative partners to identify solutions and provide leadership should continue to grow. Coordinated partners (public and private) are committed to address the needs and meet these challenges.

Legislative Matters:

BUILD RURAL PROSPERITY – JUST FIX IT EASIER SAID THAN DONE WHEN SO MUCH OF THE NATION’S RURAL INFRASTRUCTURE HAS BEEN IGNORED FOR DECADES. PAST NATIONAL INFRASTRUCTURE INITIATIVES HAVE TYPICALLY FOCUSED ON URBAN CENTERS, LEAVING RURAL COMMUNITIES INFRASTRUCTURE NEEDS IGNORED. WITH THAT, POPULATION HAS SHIFTED TO URBAN CENTERS, LEAVING RESOURCES DIMINISHED. WHAT TO DO? SOMETHING, AND LEAD IT TO ACHIEVE GREAT THINGS.

Fall 2018 — Partners

A recent success for Michigan has been the commitment by the United States Congress to make expansion of the Soo Locks a reality. The “America’s Water Infrastructure Act of 2018” was announced earlier in September. The United States has more at stake when it comes to Great Lakes conservation and water infrastructure development. Other major wins as part of this legislation which will improve all of Michigan’s rural water infrastructure is: • Advances in research on eradicating invasive species, such as Asian Carp and Zebra Muscles • Takes aim at resolving toxic algal blooms in the Great Lakes • Requires EPA to help public water systems monitor for unregulated contaminates, such as PFAS Rebuilding Rural will take a large team, and energy around communication and advocacy, to be sustained and to keep the focus on the wide range of needs from large to small. Using your voice will help to get more done, keep doing it. ■

PAC Progress:

THE STORIES TOLD OF RURAL COMMUNITIES AND AGRICULTURE are building a foundation for legislative support in the upcoming legislative sessions. GreenStone continues to reach out to legislators and partner with other similarly minded agricultural organizations on legislative matters. The focus is on ensuring the future of rural communities and agriculture, and the Farm Credit System is bright. Communicating this is an important responsibility of all members and it is built through the ongoing, positive and open conversations. At the state level, in Michigan and Wisconsin, over 20 meetings have taken place with state Senators and Representatives at the capitol or out in the districts. The majority of the meetings have focused on connecting GreenStone members

and employees to the elected officials. In addition, the depth of expertise and care of Farm Credit members and lenders has been demonstrated. The Farm Credit PAC continues to support federal elected legislators both in Michigan and Wisconsin. Over 20 meetings have taken place with Senators and Representatives this year, both in state and in Washington D.C. The discussion has centered around the Farm Bill and the need for it to provide a level of certainty for farmers. Legislators recognize the importance of having a current Farm Bill because it could hamper the economic engine of

agriculture. This significant impact is recognized, and is why urban and rural legislators are engaged to understand the issues of agriculture. Our elected officials continue to express deep appreciation for support and recognize the great responsibility of representing rural communities and agriculture. They trust the relationships being built, and know that GreenStone can and will provide reliable grassroots information and resources. None of this could be done successfully without active engagement; your involvement is encouraged. Thank you for helping build the voice of rural communities and agriculture! â&#x2013;

Partners â&#x20AC;&#x201D; Fall 2018

Fall 2018

Directors’ Perspective-

As you’ll read on the next page, membership with your GreenStone cooperative provides different value to each customer. Introduced at Patronage Day, we have been providing members the opportunity to share that personal perspective by selecting a word bubble most relevant to them. Here four of your Board of Directors share their view on what GreenStone means to them.

Fall 2018 — Partners

Mike Timmer: Next Generation

Dennis Muchmore: Living My Dream

I grew up in Central Illinois and although I lived in town, my mother’s family farmed north of my hometown. I spent my teen years bailing hay, cutting weeds out of beans, debeaking chickens, running with my buddies, driving my car too fast, and shared a locker in school with a farmer named Don Nees. Donny’s talent for making money farming wasn’t all that evident at the time (though he later became a very, very prosperous businessman), but I always admired his optimism – and I also admired the good looking girls who hung around those FFA guys with the blue corduroy jackets. As they say, you can take the boy out of the small town, but you can’t take the small town out of the boy, and I never lost my appreciation of the work ethic and the honesty of my friends. I joined the GreenStone board 16 years ago as an outside director, and have always felt that I’m giving back just a little bit of what my family and my friends gave to me. “Living the Dream” with the incredible people of Farm Credit and their members continues to be a daily lesson for me in honesty, fair play, hard work and doing right by people. Jed Welder: HOO-AH!

Oorah! It’s an Army and Marine Corp response, meaning agreement, motivation or enthusiasm! It comes from deep in the diaphragm and comes out almost like a guttural bark. I recently finished my first official GreenStone board meeting, and I couldn’t be more enthusiastic about the great people that I’m working with at Greenstone – both in the branch and in the board room. They are a terrific group that is motivated to do the very best job for our members. As we enter this beautiful harvest season, we can be confident the entire team at Farm Credit is behind us. All I can say is, “Oorah!”

Some of my fondest memories were on our family farm growing up. It was where I learned how to drive a tractor, plant corn, feed cows, and so many other things that I did for the first time. I often learned these skills not because I was ready for the next challenge, but was available to help keep things moving. As I have grown to take over many of the day to day decisions on the farm, I have to remind myself to take time to let the next generation have their turn to learn new skills and take on new challenges. Many of the challenges and opportunities the next generation will face will require a partner to help them succeed. GreenStone has been there for our families as we faced challenges and pursued new opportunities. Over the years, GreenStone has worked hard to provide tools and financial products that not only help my generation, but will work well for the next generation. Andy Snider: Next Generation and Our Farm’s Partner!

When I had the opportunity to select a word bubble and then share my related comments, I didn’t quite feel any of them were quite perfect to cover all my feelings. As in the name of this wonderful quarterly publication, I have always felt that GreenStone has been my dedicated “Partner” in the business of farming. As I look back over the last couple of decades and ponder the path our farm has taken through the ups and downs and the phases of growth, I really don’t think it would have been possible without a top notch dedicated partner for our financial needs. And getting to work with GreenStone at the board level has really been an honor for me; it is something I take very seriously. Growing, building, and completing projects that make our farm better and more efficient is a privilege. Having GreenStone as our partner into the “Next Generation” is exciting, and frankly has made my career choice very rewarding. Having the next generation come alongside to share responsibility and provide fresh new energy has been a blessing. I can remember when I was in my son Zack’s shoes, being the “Next Generation” farming with my dad, Larry. When I go to farm meetings and meet those who don’t have this option and are seeking to figure out their exit plan or retirement, I’m again reminded there is much to be thankful for. GreenStone’s dedication to being “Our Farm’s Partner” that we needed through the generations has been evident. ■

Partners — Fall 2018

LIVE

From Dream to Reality:

The Making of a Horse Sanctuary Living in West Bloomfield, Michigan, Karen Weaver and her daughter, Dawn Bien, long dreamed of having a place of their own for their prized horses. Their vision was for a peaceful, healthy setting for their horses with additional space for a few more. After years of dreaming and searching, their vision became a reality when they found 10 acres of over-grown trees and weeds on a quiet cul-de-sac in Highland Township.

Fall 2018 â&#x20AC;&#x201D; Partners

➡ Opposite page: ARI’EL Equestrain center provides a secluded, peaceful haven for its boarders. ➡ Right: Dawn Bien and Karen Cleaver worked together to design the modern facility. ➡ Center: Dawn’s love of horses drives her passion to work tirelessly every day caring for the animals.

“We had looked for years for the right spot,” Karen says. “When we saw this place we knew it needed work, but we could see what it could become.” In November 2015, Karen purchased the property and set out on building the horse setting of their dreams. Planning the Setting

Prior to purchasing the property, Karen and Dawn relied on other facilities to care for their horses, and even though they would visit the horses several times a day, they wanted to have a place where they would be the primary care takers. “We were always nervous when our horses were at other places,” Dawn says. “We would check on them two or three times a day. I sleep better now that they are here.” Having experienced several boarding facilities over the years, they knew some features they were wanting to add and others they would avoid. Most importantly, the facility would be exclusive to those owners boarding with them and it would not be open for other people to drop in with their horse for lessons or a show. “We wanted to build a sanctuary-type setting, not a show barn,” Dawn says. “We wanted to build a place where people could come and enjoy being with their horse, to ride or just sit in a quiet place.” The first hurdle for them came in finding the financing for the barn. Karen tried working with local banks but quickly found they would not finance a barn. Working with GreenStone, she was able to find the financing she needed for the barn construction and the roll-over mortgage.

“James (Cole, senior financial services officer) was great and the loan was easy to facilitate,” Karen says. “We used a construction loan for the building and then rolled it over into a mortgage when we were done.” It took nine months to clear the land and prepare it for building. The first

construction was for Dawn’s log home so she could be at the facility full-time. Once the home was finished, they began work on the horse barn in July 2017. In November 2017 they opened the doors to ARI’EL Equestrian Center and started taking boarders in December. Partners — Fall 2018

➡ Left: The facility provides outside pastures and a walking trail for the horses.

The building details are just a part of the uniqueness of their facility. The horse manure is removed from the stalls and pasture each day and stored in a large dumpster to be hauled each week to a composting facility. Keeping the manure managed and removed controls odor and flies. Eventually they hope to compost the manure on site in a composter.

The Personal Details

“Dawn and I worked together to provide the design details to the architect,” Karen says. “There is no other barn like this one.” The special touches and details of the custom barn and arena reflect Karen and Dawn’s deep compassion for all horses. The barn includes 18 individual stalls equipped with industrial fans, stainless steel waters, black molded head gates and tall ceilings with windows. The stalls are situated around a 70’ x 150’ indoor arena filled with GGT footing material. The interior of the barn features knotty pine giving it an “up-north” feel. The barn also has a four get-ready stalls, heated handicapped bathroom with a washer

i COUNTRY LIVING – OPEN FIELDS BLOG BRIEF GreenStone publishes regular updates on our Open Fields blog. Check out some of the posts you may have missed at www.greenstonefcs.com/ openfieldsblog. Understanding Interest Rate Calculations If you are in the market for a new home or vacant land loan, you have a number of considerations to make when choosing the

Fall 2018 — Partners

and dryer and two wash racks with hot water along with a seating area for guests. The barn is kept comfortable with radiant heat in the winter. “We know everything that is here and how it was built,” Karen adds. “We were here everyday and worked as the general contractor for the building.” The land surrounding the barn boasts seven pastures wrapping around the barn and seven dry sand lots, a 100’ x 150’ outdoor arena and a fenced two-track riding nature path. “We want this to be a peaceful setting for the horses and their owners. We added in all the things we wanted when we were boarding our horses,” Dawn says.

Animal care is another top priority for Karen and Dawn. They have three veterinarians working with the horses from neighboring vet clinics. The horses are also fed a special hay brought in from Idaho. “We won’t cut corners,” Dawn says. “We want to provide the best for the horses.” Karen and Dawn started taking boarders in December and by May it was full with a waiting list for additional horses. Dawn devotes all of her time to the facility starting the day at 5 a.m. with morning chores and ending with a nighttime cleaning. “There is no other place we would rather be then here with the horse,” Dawn says. “I love it here. My son, Brayden, and I spend all our time out with the horses either working around the barns or just enjoying the animals.” ■

right lender. Understanding how interest rates are calculated and the factors used in determining them may help to comfort you as you make your decision. Sam Schafer, a financial services officer at GreenStone, shares tips on how to understand interest rate calculations in this blog post.

you need to be successful is the driving force behind the look and structure of this website. Based on customer and employee feedback, we have developed this to be a growing reservoir of resources, making the information GreenStone has developed easily available to you.

Series: GreenStone in the Community Engaging in local activities is one way GreenStone gives back to places where we work and live. Our employees carry out our passion for community engagement through a variety of activities both as GreenStone representatives and as volunteers, and we are pleased to share their stories. Follow along as we continue our community engagement blog series.

GreenStone on the Road: Career Fairs School may just be starting for college students, but it’s not too soon to start thinking about internships and postgraduation positions. Our team will be out visiting students at career fairs around our territory this fall. ■

Welcome to Our New Website Check out the new GreenStone website! Providing you the tools and resources

9 TIPS FOR BEGINNER CYCLISTS THERE ARE MILLIONS OF AMERICANS WHO RIDE BIKES AND THOSE NUMBERS ARE INCREASING ALL THE TIME. WITH MORE AND MORE RIDERS ON THE TRAILS AND ROADS, THESE TIPS FOR BEGINNER CYCLISTS WILL HELP YOU RIDE BETTER AND SAFER. Protect your head. Head injuries are the cause of 60 percent of all cycling deaths in the U. S. every year. Many of these deaths could be avoided if everyone wore a helmet while cycling. Always wear a helmet when riding and make sure your kids do as well. Don’t pedal in high gear for extended periods of time. You want to keep your cadence between 70 and 90 rpm’s. When you pedal in a high gear it puts added strain on you knees. Use your gears. When climbing hills shift into a gear that will keep your cadence in the right range of rpm’s so you can make it up the hill without putting undue stress on your knees. Get a proper bike fit. Having your bike set up to fit your body will make riding much easier, more efficient and cause you much less pain and soreness during and after the ride. Get the right saddle. Getting the right saddle will make a huge difference when riding. Don’t think the thickest padding will give you the most comfortable ride. A longer seat with a cutout will generally be the best type of saddle. Read reviews online and find out what others like, then test ride a few.

Change position while riding. Move your hands around on the bars, and move your rear end around on the saddle. This will keep your hands, arms and rear from getting numb due to prolonged time in a given position. Don’t ride with headphones on. It can be extremely dangerous if you don’t hear an emergency vehicle or other commotions behind you or off to the side. If you have to have music, get a small clip-on radio with a speaker that you can attach to your jersey. Know the rules. Ride with traffic and obey all road signs. Closely watch all cars in front of you so you can try to anticipate what they are going to do. Keep your head up. Look out in front far enough ahead so you can react to any obstacles in the road or on the shoulder in front of you. Things like storm drain grates are very bad for skinny road bike tires. If you follow these tips you will have a better, safer and more enjoyable time on your bike. Reprinted from Active.com – original article written by Minneapolis Cycling Examiner ■

Partners — Fall 2018

PREPARING FOR OUTDOOR ACTIVITY DON’T LET THE COLD STOP YOUR OUTDOOR ACTIVITIES! WHEN YOU STEP OUTDOORS, THE ANCIENT ART OF LAYERING BECOMES YOUR SMART-TECHNOLOGY THERMOSTAT. THIS TRIED-AND-TRUE STRATEGY LETS YOU REGULATE COMFORT BY SLIPPING LAYERS ON AND OFF AS YOUR ACTIVITY LEVEL OR THE WEATHER CHANGES. How to layer: To understand layering your clothing for outdoor activities, you need to know the function of each layer: 1. Base layer: wicks sweat off your skin 2. Middle layer: retains body heat to protect you from the cold 3. Outer layer: shields you from wind and rain Even if you don’t wear all three layers at the outset, it’s a good idea to take all layers on every outing. You can peel off layers if things heat up, but you can’t put on layers that you didn’t bring along. Layering Examples The examples below provide an idea of layering solutions for a hike in various weather scenarios. Cold Weather Layers Midweight polyester long underwear top and bottom; a jacket with synthetic insulation; midweight fleece pants; waterproof/breathable rain jacket and pants. Rainy and Cold Weather Layers Lightweight polyester long underwear top and bottom; lightweight fleece jacket; synthetic hiking pants; lightweight waterproof/breathable rain jacket and pants (with plenty of vents). 33

Fall 2018 — Partners

Hot Weather layers Polyester briefs and a short-sleeve synthetic Tee; convertible nylon hiking pants; lightweight wind jacket. There are dozens of alternatives and options for each of these layers. The trick is to go with options that make the most sense for where you’re headed, what you’re doing and what you’re able to spend. It’s also key that you take the time to adjust layers as conditions change. If the rain and wind let up, remove your shell. If hiking alone isn’t warming you up, add a middle layer. And many people add a middle layer (on top) and/or outer layer at every rest stop, just to avoid getting chilled. Base Layer: Moisture Management As the next-to-skin layer, a base layer’s job is moving perspiration away from your skin, aka “wicking.” In cool or cold conditions, wicking long-underwear-style base layers are needed to keep your skin dry. That’s essential because it helps to keep you from becoming chilled or worse—hypothermic. There is a wide range of fabric options, including synthetics like polyester and nylon, or natural fibers like merino wool and silk. Though there are subtle differences in wicking and drying for each material, and in

odor retention and durability, many simply go with their personal fabric preference. Middle Layer: Insulation The insulating layer helps you retain the heat that’s radiated by your body. The more efficiently this layer traps that heat, the warmer you’ll be. Just as with base layers, there is a broad range of options, both synthetic and natural. In general, thicker (or puffier) equals warmer, though the efficiency of the insulating material is also important. Outer Layer: Rain and Wind Protection The outer layer (or shell layer) protects you from wind, rain and snow. Shells range from pricey mountaineering jackets to simple wind-resistant jackets. Most allow at least some perspiration to escape; virtually all are treated with a durable water repellent finish to make water bead up and roll off the fabric. Your outer shell is an important piece in stormy weather, because if wind and water are allowed to penetrate to inner layers, you can get seriously chilled. Layer up and enjoy outdoor fall and winter activities! ■ Source: REI Co-op

Indian Summer Turkey Chili Ingredients: • 3 tablespoons extra-virgin olive oil • 2 1/2 pounds ground turkey • 4 tablespoons dark chili powder • 2 tablespoons grill seasoning blend • 1 tablespoon cumin • 2 tablespoons Worcestershire sauce • 1 to 3 tablespoons hot sauce • 1 large onion, quartered, ¾ chopped • 2 large peppers, chopped

Instructions: Heat a pot over medium heat. Add olive oil, then add turkey meat, chili powder, grill seasoning, cumin, Worcestershire and hot sauce. Brown meat 5 minutes, then add chopped onion and chopped bell peppers and cook another 10 minutes. Add beer and simmer, then add tomato sauce and barbecue sauce and bring to a bubble. If using corn kernels, add them now. Let chili simmer 10 minutes. Adjust seasonings and heat level to your taste. Remove from heat and serve.

• 1/2 bottle beer

Toppings:

• 1 (14-ounce) can tomato sauce

Choose from a variety of topping options: shredded cheese, sliced canned jalapenos, salsa, sour cream, chopped onion or cilantro leaves, diced tomatoes, etc. ■

• 1/2 cup smoky barbecue sauce • 2 cups corn kernels, optional

Source: Rachel Ray and the Food Network.com

Commodity Cuisine...

Partners — Fall 2018

LEARN

Cabbage is King in Bear Creek

➡ Below: Gerard Mares taught his nephew, Chad, the strategy of using commodity marketing tools to be successful.

Gerard Mares. “We don’t want to see how high it gets before we start booking it. It is a good feeling when we have contracted our biggest crops, corn and beans, going into harvest.”

The Mares’ discipline to strategically engage in the markets has yielded them stability and success over the years. Their willingness to not always capture the highest points in the market also prevents then from capturing the lowest.

USING WHOLE FARM REVENUE PROTECTION TO COVER HIGH-VALUE CROPS Diversifying crops can often help farmers balance risk by adding in a higher value crop to a traditional mix of corn, soybeans, wheat and alfalfa. However, until recently, having specialty crops often created a void in risk protection due to the limited availability of insurance coverage for higher-value crops. “Traditional multi-peril crop insurance does not always provide adequate coverage for higher value crops, especially if you have them sold at contract prices higher than market price,” says Robert Netrefa, GreenStone crop insurance specialist. Chad Mares, owner of CLM Farms, LLC, along with his wife Laura, are avid risk managers having locked in pricing for the majority of their crops each year before they begin fieldwork. Using market programs as well as crop insurance gives them peace of mind that they will be profitable. Using risk management tools has been a part of their operation for years, starting with Chad’s uncle Gerard Mares, who owned Wandering Acre Farms, the predecessor to CLM Farms, LLC. “We start with figuring out our cost of production, then with that in mind, we work with the elevator to write contracts that will cover our costs and give us a return,” says

Fall 2018 — Partners

“The one thing I have learned is the price falls a lot faster than it goes up,” Gerard says. “We have locked in prices for several years and it has brought us success.” In addition to 3,000 acres of corn and soybeans in northeast Wisconsin, the Mareses also raise cabbage for GLK Foods,

the world’s largest sauerkraut plant. The locally operated plant has a long history of kraut making, but over the years, processing and farms have consolidated to the point where only eight farms supply the plant. The Mareses are fortunate to be one of those producers. “We negotiate with GLK each winter on how much we should raise and what the price will be. We then know when the seed goes in the ground how much value we have in the crop,” Chad says. The Mareses have partnered with GLK and the Flanagan family since the 1920s when Bernard Mares sold market (fresh) cabbage throughout the Midwest and to the Flanagans in his hometown. Today, all of their 750 acres of cabbage is sold through GLK. Protecting the value beyond market price has been difficult for the Mareses due to limitations in long-standing crop insurance programs. This year, with the help of Robert, the Mareses are using a Whole Farm Revenue Protection policy to cover all their crops in one package.

Using five years of Schedule F tax returns, Robert designed the Whole Farm policy to protect revenue, not the individual crop. So, if the Mares’ overall revenue declines due to certain factors, their overall revenue is protected up to 75 percent. Using the Whole Farm allows the Mareses to better protect the added value of their cabbage production. “Like all insurance policies, we hope we don’t have to use it,” Chad says. “But I do like knowing we are protected for the true value of the crop.” Evolving to Whole Farm is just another way the Mareses have worked to streamline costs and increase productivity with their cabbage production. In the past few years, they have evolved to seed planting versus transplanting. While there is a risk in lower productivity from seeds, the savings in labor costs and eliminating the management of migrant labor offsets the risk. “We used to have 11 people on the planter at planting time,” Chad says. “We now have one.” Along with adopting new seeding, they have also narrowed their crop rows to maximize productivity with the same number of acres. Utilizing new

technologies and practices is critical when producing high-value crops because the input costs are also higher than traditional crops. Reducing labor costs eliminated nearly $200 per acre for the Mares operation. Switching to Whole Farm insurance also required a new mindset for Chad, but like other changes, he saw a cost return as well as a better product.

WORLD’S LARGEST SAUERKRAUT COMPANY

“The whole farm program requires a new thought process,” says Robert. “Under this policy we are covering the entire farm revenue, not necessarily a specific crop.”

More than 100 years ago, in the town of Bear Creek, Wis., two Irish brothers began a pickling company called Flanagan Brothers. Since then, Dave and Henry Flanagan’s enterprise has become the world’s largest producer of kraut, processing nearly 150,000 tons of raw cabbage into kraut each year.

Although the Mareses adopt new innovations and tools to keep their business relevant, they have remained a constant customer and advocate for the Farm Credit System. Since Chad’s grandfather borrowed the first $1,500 from PCA to buy the farm, the family has relied on Farm Credit to advance their business.

Ryan Downs currently leads the business founded by his great-grandfather and great-uncle. Now called GLK Foods, LLC the company operates a second manufacturing facility in Shortsville, N.Y., but maintains its original manufacturing plant and headquarters in Wisconsin. •G LK Foods, LLC, is the world’s largest producer of sauerkraut, accounting for approximately 85 percent of the North American market and more than all of Western Europe combined.

“There were many times over the years when Farm Credit worked with us to get us through some tough times. They were always good to us and always understood our business. Our goal is always to pay the bills and buy a couple of pops at the end of the season,” Gerard says. ■

• Every year, GLK Foods processes 140,000 tons of raw cabbage into 105,000 tons of sauerkraut. This volume requires 4,700 acres of cabbage fields and more than 50 million cabbage plants. • The Bear Creek plant can process 1,200 tons of raw cabbage in one day. ■

Crop Insurance Calendar... OCTOBER

15 25 26

Forage Underwriting Report Signature Due Date

DECEMBER

NOVEMBER

End of Insurance Period (loss reporting deadline for Apples

End of Insurance Period (loss reporting deadline) for Spring Crops

December LGM Sales Close Date

Wheat Final Plant Date*

Wheat Production Reports Due

October LGM Sales Close Date

Wheat & Forage Acreage Reports Due

JANUARY

End of Insurance Period (loss reporting deadline for Fall Crops

Final Claim Reporting Date for Sugar Beets

Fruit Acreage/Production Reports & Pre-Acceptance Worksheets Due

Final Claim Reporting Date for Dry Beans

Fruit Sales Close Date & End of Insurance Period for Grapes

January LGM Sales Close Date

November LGM Sales Close Date

*Please note that some dates can vary by county, especially in Wisconsin. Please check with your crop insurance specialist for specific dates if you are unsure.

Partners — Fall 2018

CROP INSURANCE NEWS: APPLE REMINDERS November 20, 2018 is the sales closing deadline to change your current coverage or take out a new policy for the 2019 crop year. Premiums are not billed to you until August 15, 2019 and are due September 30. Your current coverage will carry over for 2019 if you do not change anything in writing by November 20. January 15 is the acreage and yield reporting deadline for fruit. Please report acres and production as early as possible! The County Transitional Yield and 2018 prices have not been announced at this time. That information will be included in your renewal information later this year. ■ CO-MINGLED PRODUCTION Please be aware that any production from 2017 being carried over into the 2018 harvest needs to be measured or marked by an adjuster prior to adding the current year’s production. Added production needs to be kept separate by unit through bin markings. If Optional or Basic Units are being combined, the insured may mark the bin themselves. ■

APH REVIEWS– The Risk Management Agency threshold for an Actual Production History (APH) policy review is now $200,000 on a per crop per county basis. With the weather conditions areas of the country experienced this year, it is likely many producers could meet or exceed this amount. An APH policy review is simply the process of verifying the accuracy of the insured reported production, share and acres. Accurate and complete records will simplify the process, along with following these guidelines: • Production records must be separated by crop, practice, type, unit and the actual crop year. • Records must be sorted by the 578 producer prints, settlement sheets and soft records. • The insured must keep three years of production records. • Livestock feeding should be recorded daily. • Printed combine monitor records should be stored with settlement sheets. • The insured cannot split truckloads, tickets and bins between units without proper soft records for comingled production.

Summer — Partners Fall 20182018 — Partners

• Comingled production needs to be measured by a disinterested third party. • The insured should keep original records and provide the Approved Insurance Providers (AIP) with copies. Hard records are production records that prove the final disposition of the total crop and are verifiable by a third party. Soft records are the documents an insured must provide if production is separated by unit, practice, type or variety. Soft records must include all units and missing or incomplete soft records may result in comingled production and the loss of optional units. This may result in a lower guarantee. If you think you will be submitting a claim that will be above the $200,000 threshold, please contact your crop insurance specialist to begin the APH Review process. Most claims will not be paid until the review is completed. The earlier the process begins, the earlier a claim can be paid. For more details, please contact your local GreenStone crop insurance specialist. ■

ACCOUNTING AND BILLING Premium bills were due before October 1. Starting with the earliest Premium Bill date, payments are applied as follows: • Any unpaid finance or interest charge, • Unpaid administrative fees, and • Unpaid premiums. Please keep in mind accrued interest on uncollected premium is attached, according with the terms of the Standard Reinsurance Agreement, and cannot be waived by the agent or AIP. ■ END OF INSURANCE PERIOD Insurance ends on each unit or part of unit at the earliest of: • • • •

Total destruction of the crop Harvest Final adjustment of loss Applicable calendar date in the crop or special provisions

• Abandonment • Or, as otherwise specified in the Crop Provisions Provisions require a Notice of Loss within 72 hours of damage discovery, but not later than 15 days after the end of insurance period. Revenue losses must be submitted no later than 45 days after release of Harvest Price. ■ ACREAGE and PRODUCTION REPORTS It is the customer’s responsibility to report the crop that was planted in each section, the planting date, the percent share of that crop and the quantity harvested. Reporting your crop accurately and double checking everything is very important. Corrections or changes cannot be made after the reporting deadline. If you have any questions or would like assistance, contact your local GreenStone crop insurance team. ■

INTERN WRAP-UP The days are getting shorter and sleeves are getting longer, which means the 2018 summer internship program has wrapped up. The diverse group of 14 student interns from varying colleges and academic backgrounds joined their respective teams at the beginning of the summer, and are now back at school. The interns came together in August to present their work from the summer to mentors, supervisors and GreenStone executives. Some presented lines of code and redesigned website pages, some shared graphs and data from farm analysis they completed, while others displayed examples of written work and farm visits. Although the group consisted of talent and personalities from all ends of the spectrum, the one common theme was the sense of belonging each intern felt, to the company and to their coworkers, and the camaraderie built between each other throughout their internship. The camaraderie was built through a variety of intern-focused events throughout the

three months. Beginning with a “branch delivery” day, interns visited GreenStone’s St. Johns branch, learning about branch life and taking an in-depth look at the varying products and services GreenStone offers its customers. Later in the day, the group ventured out to a local dairy farm where sudden, heavy rains strengthened the bonds between the interns while they laughed and huddled in a barn while the water outside rose. “I will never forget it,” Marisa Kimerer, the communications intern said. “We were all soaking wet and muddy, but it was a blast and it brought us closer together as a team and as friends.” In July, the group participated in a variety of activities, ranging from workshops to job shadows and more farm visits. The business etiquette workshop was a crowd favorite. The interns learned proper techniques to use when enjoying business meals, and they practiced what they learned over a formal luncheon prepared by a highly regarded chef from Michigan State University. Later that day, the group visited a fellow intern’s family dairy farm where they toured the property and learned about modern milking and calf feeding practices. A common theme among most interns when giving their final presentations was the appreciation of the opportunity to job shadow other departments.

Justin Webster, a credit intern at GreenStone’s corporate office, said, “The opportunity to job shadow employees in other departments is invaluable in an internship setting. It allows for a greater understanding of the company as a whole.” The interns also had the opportunity to spend an afternoon volunteering at a local community garden, pulling weeds, building elevated gardens and watering plants as one of the final bonding and collaborating opportunities. Between all this fun and excitement, this summer’s student interns completed projects ranging from creating a recruiting website, coordinating for future career fair participation at dozens of universities, gathering data for farm comparisons, writing dozens of articles and much, much more. Although the summer has ended, the interns agree what they learned throughout their program will stay with them for years to come. Devon Davidson, this summer’s legal intern, shared, “This internship undoubtedly taught me many new skills, while allowing me to build upon the skills I already had.” Congratulations to the summer 2018 class of student interns for completion of a successful internship program! GreenStone is now recruiting for new internship opportunities for 2019. ■ Partners — Fall 2018

Section 199A Deduction By Chad Zagar, VP and Managing Director of Financial Services THE SPRING 2018 ISSUE OF PARTNERS INCLUDED AN ARTICLE ON THE TAX ACTS AND JOBS ACT (TCJA). IT DETAILED A NUMBER OF SIGNIFICANT TAX LAW CHANGES EXPECTED TO IMPACT OUR FARMING CUSTOMERS.

Since then, a topic that continues to come up in conversations with our customers is how the New Section 199A Deduction works, specifically for farmers that are part of a cooperative and have resulting sales to the cooperative. The TCJA enacted the New Section 199A Deduction at 20 percent of qualified business income (QBI) as a means to lower the effective tax rate on business income. Congress was aware of the high tax rate on individual business income relative to the new 21 percent tax rate on C corporation income. The overall goal of the 20 percent QBI deduction is to lower the difference between the business income tax rates on individuals. If maximized, the New Section 199A Deduction reduces business tax rates for individuals from 37 percent to 29.6 percent (i.e. 80 percent x 37 percent). This New Section 199A Deduction completely replaces the Domestic Production Activities Deduction (DPAD) that many received in the past, both from your own activities and those passed through to you potentially as a member of a co-op. Prior to the TCJA, the maximum DPAD deduction allowed was 9 percent of the income earned from your business – which is very close to the 7.4 percent maximum rate decrease shown above (i.e. taxable rate decrease from 37 percent to 29.6 percent). All of this sounds simple right? Not so much, the devil is always in the details. There are many more complexities that enter into the determination of the New Section 199A Deduction and limitations that apply. The TCJA allows for significant tax planning opportunities – including this New Section 199A Deduction. The limitations included in the TCJA definitely require discussion and analysis. However, here is a high level explanation. Taxpayers that have taxable income less than the income threshold limit have a simpler computation than those that do not – these taxpayers

Fall 2018 — Partners

multiply their QBI by 20 percent. As long as that amount does not exceed 20 percent of their ordinary income on their tax return, that is their deduction. The New Section 199A Deduction is claimed above taxable income. The taxable income threshold begins at $157,500 for individuals ($315,000 for married filing jointly taxpayers) with the deduction vanishing at $207,500 for individuals ($415,000 for married filing jointly taxpayers). When taxpayers exceed the income thresholds or their ordinary income amount, and have potentially other complicated activities, additional limitations apply relating to wages, co-op sales, qualified property, and co-op pass through Section 199A. Later in this article we include an example computation with varying inputs and the resulting New Section 199A Deduction to show the complexity of this new deduction. Qualified Business Income As the computation is based off a percentage of QBI, it’s important to understand what is and is not included in QBI. Again, there are changes in store for farmers as to what is included in QBI. QBI is the net amount of items of income, gain, deduction and loss with respect to any qualified trade or business. QBI does not include: • Wage income • Guaranteed payments from partnerships • Dividend income • Interest income other than that which is properly allocable to a trade or business (generally, interest on accounts receivable for most farms) • Speculative commodity transactions (qualified hedging on farm inputs and revenue is QBI) • Any capital gain or loss • Any Section 1231 gain (generally, gains on raised cull cows, heifers and sows and farm real estate) taxed as capital gain

NEW SECTION 199A COMPUTATIONS INPUTS

CO-OP SALES

All taxpayer “taxable income Percentage of sales to Co-operative Schedule F net profit, assumed to be all of the QBI Wages paid Qualifed property Taxable income below $315,000 phase-out threshhold Co-operative Section 199A received Section 199A(a) computation 20% Section 199A deduction

CO-OP SALES - NO CO-OP SECTION 199A RECEIVED

CO-OP SALES - NO WAGES

200,000 60% 245,000 40,000 — Yes —

200,000 60% — 40,000 — Yes 12,750

200,000 0% 245,000 40,000 — Yes —

200,000 60% 415,000 -— — Yes 12,750

$49,000

—

200,000 60% 245,000 40,000 — Yes 12,750 (a)

Subtract the less of: 9% of QBI related to income generated by Co-operative sales 50% of wages associated with QBI from Co-operative sales

CO-OP SALES & HIGH INCOME

NO CO-OP SALES

$49,000 $49,000 13,230

13,230

—

22,410

12,000

—

12,000

—

(b)

12,000

—

(a)-(b)

37,000 40,000

49,000 40,000

— 40,000

Lesser above = Total Section 199A(a) deduction

$37,000

$40,000

—

Section 199A(g) computation DPAD received from Co-oparative Taxable income less Section 199A(a) deduction

12,750 163,000

— 163,000

12,750 160,000

— 160,000

12,750 200,000

12,750

—

12,750

—

12,750

$49,750

$37,000

$52,750

$40,000

$12,750

Lesser of the above 20% Section 199A deduction minus lesser of above 20% of taxable income limiation

Lesser above = Total Section 199A(a) deduction Total Section 199A deduction (a) + (g)

This item received preferential treatment in the past as capital gains realized by farmers on raised cull cows, heifers and sows were eligible to receive up to 9 percent on DPAD. These items were already excluded from farming income on the Schedule F and were taxed at the lower capital gains tax rates (which will continue under the TCJA). However, the ability to have it included in QBI as well is no longer available as a result of the changes. This could have a significant impact on the amount of deduction recognized this year compared to previous years. QBI does include Section 1245 gain (i.e., gain from depreciation recapture). There are other items on tax returns that have a business flavor that may or may not be considered in the QBI computation at this time. Examples of these items include: • Self-employed health insurance deduction

(g)

• Deduction for 50 percent of selfemployment tax

Tax Calendar...

• State income tax on trade or business income • Retirement plan contributions for a sole proprietor or partner, considered non-business for net operating loss determinations Conclusion At one point it was referenced that tax returns would be so simple, they would be completed on postcards. As you can see, if the New Section 199A is applicable to you, that will definitely not be the case. This area along with many other areas of the TCJA, provide for tax planning opportunities different than previous years, We recommend you seek the expertise of qualified tax professionals. Please contact your GreenStone tax accountant or branch to set up an appointment to see how we can help you minimize your tax liabilities. ■

OCTOBER

Individuals file a 2017 income tax return (Form 1040) if an automatic six-month extension was requested. Corporations file a 2017 calendar year income tax return (Form 1120) if you requested an automatic six-month extension.

Non-farm employers file Form 941 for the third quarter to report wages paid, and Social Security, Medicare, and income tax withheld from wages, and compute employer matching social security payments.

DECEMBER

Corporations deposit the fourth installment of estimated tax for 2018.

Partners — Fall 2018

COLLECT YOUR CROP DATA WITH MYAGDATA® By Chris Martin, MyAgData

If you’re a producer who has invested in Precision Ag technology, you have all the data about your planting. Maybe it’s on a stick, or stored in the cloud.

to your specialist for reporting. It saves you time, it saves them time, and it saves you money because it allows you to only pay premium on exactly what you plant.

have the correct risk management programs in place. Producers can spend less time in the office and more time working their operation.

Even if you don’t have Precision Ag technology, wouldn’t it be nice to use your phone or tablet to collect the data while you plant?

MyAgData further provides both you as the producer, as well as your specialist, the ability to take advantage of the USDA’s Acreage Crop Reporting Streamlining Initiative (ACRSI). ACRSI enables acreage reporting and other information to be sent directly to the USDA, just like taxpayers can send income tax information to the IRS. What TurboTax® is to the IRS, MyAgData is to the USDA.

Perhaps most importantly, everybody saves money. Producers, on average, save 4.7 percent on their crop insurance using their actual planting data, not the boundaries for FSA Farms.

And wouldn’t it be even better if you could get your crop insurance specialist that data as soon as it’s created? Now, with MyAgData®, you can! MyAgData has a full feature mobile app you can use to collect data wherever you are— even right in the field. If your equipment already captures the data and sends it to a manufacturer cloud, MyAgData can pull the data from there and make it available 41

Fall 2018 — Partners

Fast, efficient electronic reporting means everybody can spend more time doing what they need to do. Crop insurance specialists will spend less time collecting planting data and more time ensuring their customers

Here’s a simple example from a producer with 8,275 acres of corn and soybeans scattered throughout five counties in central Illinois. Using the “default” method of paying premiums on the entire FSA Farm boundary, the producer can expect to pay a total of $76,969 for a Revenue Protection plan. However, using his as-planted data revealed that he actually planted 4.1 percent fewer acres than that default

i TWO-FACTOR AUTHENTICATION

8,275 acre figure. The producer pays his premium on the planted 7,936 acres (the FSA classifies the 339.28 unplanted acres as Idle) and saves a few thousand dollars in the process. Using the data you’ve collected while still in the field has other big advantages too. When your specialist gets the data, he or she can begin to review it for submission instead of keying data and asking you questions. It is more accurate, it is auditable, and it is a great way to meet compliance requirements. Technology is everywhere in today’s farming operations. Producers use the data collected to control planting, inputs, and harvest at a level of precision and efficiency that

Every day we use any number of online services like Google, Facebook or Outlook to name a few. Often without even thinking about, we store a treasure trove of personal data in these services that could be of great value to an attacker. One of the simplest ways to enhance and protect these accounts is to enable two-factor authentication. Also known as two-step verification or 2FA, the process of twofactor requires that you must provide something you know (your password) and then a second form of authentication by something you have. This could be a SMS message or a push notification to your cell phone.

was unheard of even 10 years ago. It only makes sense to use that same technology and its hyper-accurate data to complete required USDA reporting instead of drawing on a paper map with red pens in a county office.

By enabling two-factor authentication, you greatly reduce the chance that an attacker can compromise your online accounts if they have your password, as they would not be able to provide the second method of authentication.

And because crop insurance is paid on those actual planted acres, the cost to both producers and taxpayers is reduced while providing the same program benefits.

The challenge with two-factor is each online service that offers two-factor has different steps for configuration. To help you in the process, there is an online resource that provides guidance on configuring two-factor authentication on your various accounts, visit: http://tiny.cc/qsc8yy. ■

Lower premiums means more dollars kept by farmers, and more dollars kept by farmers provides more opportunity for them to invest in their operation. ■ The opinions stated herein are not necessarily those of GreenStone Farm Credit Services.

...Tech Tip

Partners — Fall 2018

3515 West Road East Lansing, MI 48823

Fall feature highlight... Living in West Bloomfield, Michigan, Karen Weaver and her daughter, Dawn Bien, long dreamed of having a place of their own for their prized horses. Their vision was for a peaceful, healthy setting for their horses with additional space for a few more. After years of dreaming and searching, their vision became a reality when they found 10 acres of over-grown trees and weeds on a quiet cul-de-sac in Highland Township. Read more on page 29.