5 YBSF Feature. Ask anyone in the small village of Lawton, Michigan about Dan Owens and chances are, they either know him, or have at least eaten his large variety of fruits and vegetables. But Dan wasn’t always a small-town farmer. Before moving back to Michigan in 2017, Dan worked in corporate human resources in San Diego, California.
GreenStone’s newly appointed CEO Travis Jones is at the helm and building upon the strong foundation laid by previous CEO Dave Armstrong.
For 64 years, Hunters Creek Club in Lapeer County’s village of Metamora has been welcoming members for a full-scale outdoor experience.
37 Crop Insurance Feature.
Dan and Jason Lake worked with GreenStone to reclaim farm land in Elk Lake, MI with a rich family history.
The Employee Retention Credit (ERC) continues to be a hot topic and provides potential for large cash refunds for select farming operations.
3 CEO Comments.
President and CEO Travis Jones provides an update to members on the state of our cooperative and several producer segments.
11 Guest Column.
Our food supply has been very much in the news over the past several months. Our affordable, abundant food that fills the tens of thousands of grocery stores across the country was suddenly not as affordable nor abundant.
13 Market Outlook.
After U.S. economic output contracted for the second straight quarter based on data reported for the quarter ended in June 2022, the largest economic question is whether the U.S. economy is currently in a recession.
19 Customer Satisfaction.
Customers appreciate personalized support, trusted experience, and engaged communication in their cooperative partnership, with 95% satisfaction.
25 Directors’ Perspective.
Peter Maxwell, Board Vice Chair shares an overview of GreenStone's board committee structure.
27 Legislative Matters.
A black swan is an unpredictable event that is beyond what is normally expected of a situation and has potentially severe consequences.
28 PAC Progress.
A summary of GreenStone’s purposeful outreach to legislators and partnerships with other similarly minded agricultural organizations.
32 Guest Column.
Taking a look at charter fishing with Michigan Out of Doors TV.
33 Halloween Safety. No matter how you celebrate the holiday, remember these practices to help keep you, your family, and others safe.
34 Healthy Meals on the Go. Try these tips and tricks for simple, yet healthy, meals on the go!
41 Patch Your Devices. Software and device patches are one thing everyone can do to significantly improve their digital security posture and it is quite simple to do.
8 Agriculture Blog Brief
YBSF Resources
MAEAP
Member News
Calendar of Events
Pause for Applause
Candid Comments
Behind the Scenes
Pause for Applause
Country Living Blog Brief
Commodity Cuisine...
Ham and Potato Soup
Crop Insurance News
Crop Insurance Calendar
Tax Calendar
I love animals, but when I think of animals, I think of the farm – cattle, pigs, dogs, cats…and rodents that often interfered with farm plans. So when I looked up after a meeting and saw the sticky note on the window of my home office, I was intrigued. It read “I have a new pet!”
We have given our kids the opportunity to each get a pet at some point during their childhood, and my youngest had been eager for his turn. Long story short, they had found an abandoned nest of baby mice and decided they’d take on the motherly task of raising them. My reaction: No. Nope. Absolutely not! They were persistent and apparently I’m either getting weaker as my age climbs or I’m running for “mom of the year,” because two months later I now have Tiki (the mouse) keeping me company in that same home office.
I can imagine the reactions from each of you as you read this, because I’ve honestly felt them all myself as I went through the stages of acceptance, and I’ve also gotten the full wrath of reactions each time I’ve felt confident enough to reveal our secret new pet to someone. But isn’t that reality – everyone has an opinion – about everything, but we should also all be brave enough to share them, and kind enough to respect them.
Look at beginning farmer Dan Owens (page 5). From San Diego corporate human resources, to small town farmer in Michigan, people certainly had opinions about his aspirations. Dan did too, and he followed his heart, built a plan, and is seeing the reality of his vision.
In Traverse City, two brothers broke through history to bring their great grandparents’ land back into the family. They too face adversity and varying perspectives, living off-site and new to the fruit industry, but they are living their dream of bringing the family land – their legacy – back together.
The transition of CEO to Charlie Mann undoubtedly came with expectations at Hunter’s Creek Club in Lapeer County (page 29) –as did GreenStone’s CEO transition to Travis Jones (page 23).
Speaking of opinions, each year GreenStone directly asks for our members’ thoughts in our annual customer satisfaction survey (page 19). We value the perspectives and experiences of our members, and use those to build on the 95% satisfaction that exists today.
As we move through fall and begin to plan for 2023, may we each be open to new ideas, confident in our actions, and respectful to those who choose differently than ourselves – pets and all! Wishing each of you a happy and safe fall!
– MelissaThis newsletter is published quarterly for the customers of GreenStone Farm Credit Services.
Editorial
Bowman
Amber Echlin
Markie Heideman
Melissa Rogers
Zabonick
Partners
GreenStone Farm Credit Services
3515 West Road East Lansing, MI 48823 800-444-3276
I don’t know about you, our members, but this year just seems to be flying by for me. As I am writing this update in early September, it just doesn’t seem possible that football season is here and more importantly, the fall harvest will be well underway by the time you read this.
Your GreenStone executive team and Board of Directors had our board meeting and annual planning session on August 15 and 16. The team shared some excellent results with the board and I continue to tell anyone that will listen to me that GreenStone is the best performing Farm Credit association in the country. That doesn’t happen by accident. It starts with you, our customers, our members, our owners. Having the courage to make bold decisions every day regarding your farms and businesses and meeting your financial obligations allows GreenStone to be a dependable, competitive and responsible source of credit and financial services for you and all our members. It also doesn’t happen without our 600 plus dedicated employees who do everything possible to meet the financial needs of our members. Some of the highlights we discussed with the board are as follows:
- Net income for GreenStone is on pace to be a record in 2022.
- That net income should allow for another record Patronage payout in March of 2023.
- Loan growth has been very strong for your organization. The average balance of loans outstanding in 2022 may end the year between 9%-10% higher than 2021.
- Credit quality is at an all-time high.
Comparison to other Farm Credit Associations
I am a “little” competitive. Dave Armstrong, my predecessor, was the same way. A number of years ago, we developed a
scoring system that measured GreenStone against the other large Farm Credit associations in the country. Today, we are the 7th largest association with approximately $12.5 billion in total assets. We measure ourselves against the 12 largest associations in eight financial categories that include areas such as operating efficiency, profitability, capital, credit quality and growth. “Knock on wood,” we consistently rank in the top third of these associations when we total our scores in these categories. Well, for the first six months of 2022, we led the group as the top financial performing association in the country according to what we believe is a well-balanced scoring system. Our staff work very hard to make your association one you can be proud of and confident in.
In our recently completed customer satisfaction survey, you rated our customer satisfaction at 95% satisfied or highly satisfied, up from an already high result last year of 92%. Almost all of our business lines and regional teams also saw strong and improved results. These results don’t happen without our dedicated staff. We work hard to make our organization a great place to work for our teammates, and those dedicated teammates do an outstanding job of servicing our members. I am very proud to work with a team who provides the drive and cooperative spirit to help meet your needs every day. Thank you to all of the randomly selected members who responded to the survey. We pay attention to every ranking, and we read every comment. We use your feedback in an effort to make us a little better every day and every year.
I did not plan on sharing so much detail on commodity conditions and certainly don’t plan on this detail in the future. However, I have been with GreenStone 15 years and I don’t remember it being this consistently good from all areas of our territory and for so many of the commodities.
Previously, I said I was a little competitive. Well, I am also a little superstitious. I don’t want to jinx our members before we have crops in the bin or mess up our commodity prices. I also realize we had dry spots in Michigan and northeast Wisconsin and our members are still facing challenges. However, on average, we have been blessed with a very strong growing season and good commodity prices – so let’s acknowledge the wins while we continue working together to address the challenges. The following are summaries from the areas of GreenStone’s territory.
• Dairy is looking to have a great year with strong markets.
• The dairy feed situation should be average or better and quality looks good. The weather has been conducive to producing exceptional crops.
• Labor issues continue to escalate, which could cause some to consider a transition to a cash crop operation.
• Crop conditions as a whole appear to be in great shape with yields looking strong. With a diverse portfolio in most of our territory, many commodities appear to be looking great.
• The area has received a good amount of moisture and heat, although a few pockets that missed the rains that could result in lower yields.
• Corn and soybeans are expected to have good yields and prices. Many individuals contracted at good prices during the spring and there has been good rain in a majority of the areas.
• It is anticipated that the cost of production and breakeven prices will increase during the next 12 months, cutting into margins.
• Strong results in most areas of the timber industry.
• Weather in the U.P. has been very good for both the farm and timber operations.
• Adequate rainfall should result in good tree growth this year.
• Greenhouses have had a solid year. When talking to many growers it is not the year that 2020 and 2021 turned out to be but are still expecting positive margins.
• Weather has been average. The fruit crop should be good this year.
• Apples are anticipated to have a good crop, better than last year.
• Peaches looked excellent throughout the summer.
• Cherries appeared to have a good year from a production standpoint, however pricing is still unknown given the payment structure in this industry. Given the good production, some processors have begun only accepting a limited quota due to the large amounts of crop on hand.
• Blueberry size is down slightly in 2022 but strong quality and pricing have more than made up for any issues.
So again, I don’t want to jinx your situation nor downplay your challenges. It would be wonderful if we didn’t have labor issues or rising operating expenses. It would also be outstanding if you didn’t have to worry about the cost and availability of fertilizers for 2023, among other things. But I didn’t know if I would ever again get to report such positive anticipated results from so many corners of our territory. Many of us ask for God’s guidance and blessing every day. Michigan and northeast Wisconsin have seen those blessings so far in 2022.
Best wishes for a safe and bountiful harvest season! Please feel free to reach out to me any time if I can ever be of assistance. Thank you for your partnership and business!
Ask anyone in the small village of Lawton, Michigan about Dan Owens and chances are, they either know him, or have at least eaten his large variety of fruits and vegetables.
View a highlight reel video at: www.greenstonefcs.com/YBSFFall22
But Dan wasn’t always a small-town farmer. Before moving back to Michigan in 2017, Dan worked in corporate human resources in San Diego, California. After making friends with people at a nonprofit farm and spending two years learning the ropes from them, he decided he needed a change. He began to save up money to turn in the west coast white collar life for a blue collar career in Michigan as a small, beginning farmer.
“Friends that I had growing up, when I told them I was quitting my corporate job to become a vegetable farmer, thought I was nuts, but they knew I would always do something like this,” said Dan.
He saved enough money to maintain the farm for three years without needing to turn a profit.
“I had this three-year plan and I had saved so I knew I could do three years without any income so it didn’t feel that risky, but I also had no idea what I didn’t know about owning a farm,” Dan recalled.
After securing a land loan with GreenStone, he officially opened the farm in March 2017 on a 13-acre piece of land.
When you drive by, you’ll see two hoop houses, plenty of crops and even a fruit and vegetable stand for the community to get their fill. But it wasn’t always this vivacious, and someone who knows that well is Dan’s financial services officer Emelee Razjer.
“My trip daily to and from work in Schoolcraft went past his property that he purchased,” said Emelee. “I literally watched from the minute the property was listed for sale all the way up to the first greenhouse.”
Emelee wasn’t always in charge of Dan’s account, but as the farm grew, her expertise made it appropriate for her to step in –something she was ecstatic to do.
“I feel like driving past it, not knowing who he was, but yet it was impressionable enough that I kept an eye on it says something,” said Emelee. “I’ve been watching this farm grow from the ground up and watching his dream and vision become a reality and GreenStone was a part of that, and now I get to be a part of that.”
With Emelee’s background in fruit and vegetable crops, she was able to help the farm expand.
“He really enjoys it because he has someone with that knowledge base and background in fruits and vegetables,” said Emelee.
“When I got connected with Emelee, that was awesome,” said Dan. “She has farming in her family and she can speak the language. It’s such a different experience than I’ve ever had before. I’ve never worked with someone on any financial endeavor that has actually stopped by the farm, so I’ve been extremely happy with her.”
➡ With the help of two hoop houses, Dan is able to grow fresh produce all year long! Check out this beautiful lettuce.
Friends that I had growing up, when I told them I was quitting my corporate job to become a vegetable farmer, thought I was nuts, but they knew I would always do something like this.
“
➡ Dan has a unique set of items on the farm that include luffa plants and spiny gourds!
Dan’s farm is small, but mighty. You won’t just find your usual apples, potatoes and onions on the property, but a number of unique crops, too.
“Customers tell me they’re glad I like to grow a lot of the normal stuff like onions and potatoes and carrots, but also have some unusual things,” said Dan. “If customers tell me about something, I try to incorporate some fun things each year.”
Dan also grows herbs and makes his own spices, and produces honey and syrup. If you take a trip to the farm, you will probably also notice the chickens and his fresh eggs for sale. Dan says when choosing his crops and products, he thinks about what people want to use in the kitchen.
“I absolutely love it, it’s so exciting for me. I love to cook and one time thought about working in the restaurant industry, so I think that helps me work in the farm industry as well because I can tell people how to cook something with my products,” said Dan. “It’s cool to see people buy your vegetables at a market and come back the next week and have them show you a picture of something on their phone of something they made with it.”
Dan is a people person, and that’s why attending the Kalamazoo Farmers’ Market each weekend is one of his favorite parts of being a farmer. He has enough crops each week to fill a 20 foot table. But he’s not just there for his bottom line; he loves making connections in the community, something Emelee can attest to.
“It was just impressive how many people we knew in common, and I think that’s also a testimony of being very well-connected in the agriculture community,” said Emelee.
It’s cool to see people buy your vegetables at a market and come back the next week and have them show you a picture of something on their phone of something they made with it.
“
“It’s a small world,” said Dan. “You’re only a couple people away from knowing any farmer in the area, and you’re even closer to the customers.”
Getting Better, not Bigger
Dan plans to remain a small farm and continue to serve people in the community. He doesn’t plan to expand his land any time soon, but he wants to keep an eye on new inventions and equipment to make his farm better.
Most importantly, he wants to keep people happy.
“It’s about providing food to the community, but it’s also a lifestyle,” said Dan. “I don’t want to go any bigger. I want to get better. Some crops come and go every single year, and I hope I’m growing things people want.”
And GreenStone is happy to be on his side as he continues making his small, beginning farmer vision come alive.
“I’m just really happy to be part of Dan’s team and making his dream become a reality,” said Emelee. ■
➡ Dan grows a variety of plants, including lavender!
GreenStone publishes regular updates on our Open Fields blog. Check out some of the posts you may have missed at www.greenstonefcs.com/openfieldsblog.
Harvest season is fast approaching, and continued high commodity prices mean an optimistic outlook for 2022 farm profits according to the latest USDA forecast. This means more motivation than usual to get an early start on tax planning!
When it comes to starting any business, having someone in your corner to turn to for advice can be one of the most helpful resources you’ll ever need.
After Mother Nature’s wrath in 2021, this year’s crop looks to be more uniform and on the positive side for both Michigan and Wisconsin growers. ■
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For row crop farmers Shawn and Tera Baker, GreenStone’s CultivateGrowth Grant provided the perfect opportunity to try a different accountant.
Their previous accountant lacked a strong agricultural understanding so they turned to the grant to help cover the cost of their first time use of tax and accounting services with GreenStone. Working with Tax and Accounting Manager Elizabeth Waldschmidt gave them answers to their many complex questions and some much needed relief.
“Working with Elizabeth was a 180 degree change from our previous accountant. She was very, very easy to work with, knowledgeable, and took a huge weight off of our shoulders,” Tera explained. “Elizabeth made the process so much easier because she has clear answers to all of our questions and asked very strategic questions.”
The grant program relieved some of the financial stress of the transitional period between accountants for Shawn and Tera, allowing them to put funds back into their farm.
GreenStone provides up to $40,000 annually in grants; current customers are eligible for up to $1,000 and noncustomers are eligible for up to $500.
To qualify, producer must be either a young, beginning, or small farmer residing in GreenStone’s Michigan or northeast Wisconsin territory.
Visit www.greenstonefcs.com/grants to learn more and apply for a grant today!
Read the full article at: www.greenstonefcs. com/openfieldsblog. ■
The most impactful life lessons are often learned through experience and what better way to gain experiencebased knowledge quickly than connecting through a mentorship with someone who has decades of life lessons already under their belt? Through GreenStone’s CultivateGrowth Mentorship, producers will do just that - all while laying the groundwork for life-long friendships and networking opportunities.
Recruiting for the current 2022-2024 mentorship class wrapped up this summer and GreenStone is excited to again launch the program this winter. With over 20 participants across Michigan and northeast Wisconsin, mentors and mentees can both expect to learn valuable skills, develop strong connections, share business and farming advice and reflect on lessons learned.
Participants will meet routinely and visit their partner’s farm to gain a better understanding of their operation and see first-hand how things run. Each pair will also meet quarterly with a GreenStone representative throughout the 18-month program and connect individually with one another as often as needed to discuss challenges, share ideas, and provide guidance. These conversations lead to both the mentor and mentee learning from one another and often resulting in friendships lasting long after the program concludes.
Stay tuned at www.greenstonefcs. com/openfieldsblog for updates on the 2022-2024 mentorship class and partner updates. ■
With the push for more sustainable practices on the minds of many, farmers can find relief through the Michigan Agriculture Environmental Assurance Program (MAEAP), knowing their operation is doing its part to be environmentally conscious. This is the case for more than 6,000 farms in Michigan who have already been verified through the program.
Many of those 6,000 display their verification sign proudly at their farm as a marker of the farm’s commitment to ensure their actions are environmentally conscious, leaving a cleaner Earth for the next generation. Verified farms also earn recognition as top stewards in the community and get preferred consideration for both technical assistance and cost share.
Verification is available to any Michigan farmer in four categories: Farmstead System, Cropping System, Livestock System, and Forest, Wetlands and Habitat System. While each system focuses on different environmental practices to increase protection of the environment, farms can get verified for one or multiple systems.
To become verified, farms follow the standard 4-step process below:
1. Schedule Farm Visit: A MAEAP technician will visit your farm to assess your farm’s environmental practices and daily operations. This visit is 100% confidential and free.
2. Farm Assessment: During the farm visit, the MAEAP technician will assess your farm, recommend practical steps to reduce possible erosion or runoff into public waters, and develop a plan of action tailored to you.
3. Implement Plan: After visiting with the technician and establishing a plan, you can start implementing the recommended changes at your own pace.
4. Contact Verifier: Once the changes have been made or a new process is in place, contact a Michigan Department of Agriculture and Rural Development verifier to schedule a visit. During the visit, they will verify the changes and review the farm to ensure it complies with MAEAP guidelines.
Every step of the verification process is confidential and information gathered by technicians or verifiers will not be shared with anyone but the individual seeking verification.
While becoming MAEAP verified is a big step in being more environmentally conscious, it is one of many steps that must be taken in the ongoing process of minimizing environmental impact. Once verified, it’s important farms get reverified every five years to ensure their
operations still meet best management practices while maintaining the legislated certainties the program offers.
This reverification is essential to confirm their ongoing farm practices as well as any new or major changes align with evolving environmental standards set by MAEAP. To get reverified, technicians will do a walk-through of the farm to ensure the operation aligns with the set standards. If improvements are needed, farmers work on their own time to make those changes.
GreenStone is proud to partner with MAEAP and assist farmers interested in initiating environmentally friendly practices on their farm. For more information on becoming verified, the reverification process or how it can bring long-term value to your farm, visit www.maeap.org
Our food supply has been very much in the news over the past several months. Our affordable, abundant food that fills the tens of thousands of grocery stores across the country was suddenly not as affordable nor abundant.
By Alan Hahn Environmental Scientist at Dragun Corporation Environmental Advisors
A myriad of external factors has led to this upset in our remarkable food supply system. These speedbumps should lead us to appreciate our producers of food and one would assume, especially as demand for food continues to grow, to carefully consider policies affecting our producers. However, that does not appear to be the case based on some recent global developments.
As the world’s population continues to grow (projected by the United Nations to officially reach 8 billion people on November 15, 2022), pressure to produce more food is only going to increase. On more than one occasion, we have shared the remarkable progress of farming and how our farmers are producing far more while reducing their overall “footprint.”
In our spring 2015 article in Partners we stated, “By just about every measure, we are not just doing better as a society; we are doing remarkably better. Child mortality is falling, diseases are being eradicated, caloric consumption is rising, food is more affordable, and famines are becoming increasingly rare ... all while our global population has exploded. How have we accomplished these rather remarkable achievements? According to (Max) Roser (Our World in Data), ‘This could only be accomplished by modernizing agriculture around the world.’”
One of the earliest modernization processes was the Haber-Bosh Process that through temperature, pressure, and natural gas turn the abundant inert nitrogen into forms of fertilizer. How important is this technology? According to Rob Saik, a Canadian Agrologist and international consultant, “Every person on the earth owes at least half of the protein in your body to fertilizer.”
Nitrogen Nature’s Gift – Handle with Care Nitrogen, as you may remember from your chemistry class is positioned as the seventh element on the periodic table. It is the most abundant gas in the atmosphere and essential for life on our planet. Nitrogen as nitrates can cause environmental and health problems – we have discussed this several times in the past. Nitrogen in the form of nitrous oxide is a powerful greenhouse gas (GHG). Because of the global warming potential of nitrous oxide, some governments have zeroed in on nitrogen as “low-hanging fruit” to meet their GHG reduction goals.
Political Policy Affects Agriculture World leaders in an effort to reduce anthropogenic GHGs have made commitments regarding nitrogen reductions that could (and have) lead to rather tragic results.
In the Netherlands, Dutch farmers have been protesting over a policy that would require some farmers to reduce nitrogen by as much as 70% in the next seven years. According to the BBC, “Dutch government proposals for tackling nitrogen emissions indicate a radical cut in livestock - they estimate 11,200 farms will have to close and another 17,600 farmers will have to significantly reduce their livestock.”
This is significant not just for Dutch farmers - but for the world. The Netherlands are the second-largest agricultural exporter only behind the United States.
Canada also joined this effort setting a goal of a 30% reduction in nitrogen in seven years. Farmers in Canada have protested including a “slow roll convoy” through the nation’s capital, Ottawa.
The most aggressive policy was carried out in Sri Lanka when the (now former) president imposed a nationwide ban on synthetic fertilizers and pesticides. The outcome was predictable as crops failed to produce enough to feed their nation and they were forced to import food at much higher costs.
According to Foreign Policy Magazine in the aftermath of the policy decision in Sri Lanka, “…half a million people have sunk back
into poverty. Soaring inflation and a rapidly depreciating currency have forced Sri Lankans to cut down on food…as prices surge.”
Rob Saik, in extolling the benefits of technology in agriculture at a TEDx Talk said, “Do you believe agriculture can feed 9 billion people...that’s not the real question, the real question is will agriculture be allowed to feed 9 billion people.”
As our global population continues to grow so will the demand for food. Farmers can meet this growing demand. If the history of technological advancements is any indication, they can do so with an even smaller environmental and carbon footprint than in the past. We must embrace technology and politicians must work closely with agriculture to understand the impact of their decisions and policies. The stakes are too high for anything short of this. Scientists are still arguing about the true impact of mankind’s activities on the environment and climate, but it is a known fact that without food, economies and societies collapse.
Alan Hahn is an Environmental Scientist at The Dragun Corporation in Farmington Hills, Michigan.
The opinions stated herein are not necessarily those of GreenStone Farm Credit Services
After U.S. economic output contracted for the second straight quarter based on data reported for the quarter ended in June 2022, the largest economic question is whether the U.S. economy is currently in a recession. Despite the debate over whether the U.S. economy is currently experiencing a broad slowdown in activity, the consensus among economists is that the economy will slip into a mild recession by the beginning of 2023 as short-term interest rates continue to rise to combat persistently high inflation.
U.S. real gross domestic product (GDP) decreased at an annual rate of 0.6% in the second quarter of 2022 according to the Bureau of Economic Analysis. In the first quarter, real GDP decreased 1.6%. The decrease in second quarter GDP is attributed to decreases in inventories, residential investment, government spending, and higher imports, which were partly offset by increases in exports and consumer spending. Despite the overall economic slowdown in the second quarter, the labor market remains resilient. Employers continue to demonstrate strong demand for labor with 1.2 million jobs added to payrolls in the second quarter and over 800,000 jobs in July and August combined.
The U.S. Bureau of Labor Statistics reported that its headline Consumer Price Index (CPI) cooled in July, slowing from an increase of 1.3% in June to almost no change in prices in July. Energy prices were the primary contributor to lower inflation, with gasoline prices down 7.7% in July. The recent decline in gasoline prices is a benefit to the economy, but core inflation continues to run well above the 2% inflation target of the U.S. Federal Reserve. The core CPI increased 0.3% in July but has increased at a 6.8% annualized pace over the past three months.
Supply chain disruptions have been a notable factor in contributing to inflation pressures dating back to 2021. Recent reports citing the Logistics Managers’ Index, as well as supply chain indices managed by the New York Federal Reserve and Oxford Economics, indicate that both domestic and global supply chain performance has improved in recent months. However, recent reports also show that warehouse and inventory costs are still rising at near-peak levels, and transportation costs are still rising at a much higher rate than before the COVID-19 pandemic.
Agricultural supply chains remain impacted by improving, yet still turbulent logistics. Grain rail car availability and prices were at multi-year lows and highs, respectively, in the second quarter before improving in mid-late summer. Recent declines in rail rates have been partially offset by increases in fuel surcharges. Grain export vessel rates are also approaching with multi-year highs. Despite measures to improve agriculture’s access to shipping vessels returning to Asia from California, the share of vessels leaving port empty was still 70% based on the most recently available data. Truck rates have shown the most consistent decline but remain far above pre-pandemic levels. Truck availability, however, is markedly improved.
The backdrop for U.S. monetary policy decisions remains unchanged from the first half of 2022. Payrolls continue to demonstrate strong growth and core inflation is still running well above targeted levels. Given these factors, the Federal Open Market Committee (FOMC) increased the Federal Funds Rate by another 75 basis points at its September 2022 meeting. Past September, the pace of interest rate increases is anticipated to remain steady before slowing later in 2023 should employment gains and inflation both moderate.
Current agricultural commodity prices continue to benefit from the higher inflation environment, with the most recent Farm Sector Income Forecast from the U.S. Department of Agriculture (USDA) calling for a 21.2% increase in farm cash receipts in 2022. Of the $91.7 billion yearover-year increase currently expected for
farm receipts, higher commodity costs are expected to contribute $80.4 billion while increased production and other factors are expected to contribute $11.3 billion to the increase. Combined receipts for corn, soybeans, and wheat are forecast to increase by $30.7 billion, accounting for most of the net increase, and receipts are expected to fall for potatoes, fruits and nuts. Total animal/animal product cash receipts are expected to increase by $55.3 billion. Growth in receipts is forecast for all major animal/animal products, with the largest percentage increases expected for broilers, milk, and chicken eggs. After reaching a record high of $45.5 billion in calendar year 2020, direct Government farm program payments are estimated to have decreased to $25.8 billion in 2021. They are forecast to decrease further to $13.0 billion in 2022.
The agricultural outlook for 2022 and 2023 is growing more uncertain due to the continued materialization of downside risks and market volatility. Previous growth projections are moderated due to ongoing trade disruptions, above-target inflation rates, and rising energy prices. Global GDP is projected to increase by 3.2% percent in 2022 and increase by 2.9% in 2023. The Russian invasion of Ukraine is ongoing and continues to impose far-reaching economic disruptions that have thus far led to elevated energy prices that continue to disproportionately affect the European market. Supply chain complications have slowly abated, but spot shipping rates remain elevated compared with their prepandemic levels.
Crude oil prices have continued to fall in recent months. Natural gas prices have temporarily plateaued but remain elevated significantly above their 10-year averages.
Germany has embarked on a rapid plan to
add additional liquified natural gas (LNG) terminals to receive LNG shipments, as gas flows from Russia remain lower and more unreliable. Reduced flows from Russia have led to concerns of gas shortages and even higher prices when gas demand rises in the upcoming winter months. The consideration of natural gas prices as inputs to nitrogen fertilizer remains a concern for elevated fertilizer cost projections.
U.S. agricultural exports in fiscal year 2023 are projected to be down $2.5 billion from 2022. This decrease is primarily driven by lower exports of cotton, beef, and sorghum that are partially offset by higher exports of soybeans and horticultural products. Total 2023 grain and feed exports are forecast down $1.3 billion while soybean exports are forecast to be up $2.2 billion due to higher prices.
2023 livestock, poultry, and dairy exports are forecast to be down $1.5 billion on declines in most product groups. Beef exports are forecast down $1.1 billion as higher prices fail to offset lower volumes driven by tight U.S. supplies. Dairy products are forecast $500 million lower. Beef and pork variety meats are forecast $100 million lower on a reduction in beef variety meat volume and slightly lower pork unit values. Poultry and products are forecast $100 million lower on a decline in broiler and turkey meat volumes as well as broiler meat values. Pork exports are forecast up $200 million as higher volumes more than offset lower unit values.
Agricultural exports to China in 2023 are forecast at $36.0 billion, unchanged from 2022, as higher soybean exports offset lower cotton and sorghum prospects. Agricultural exports to Canada and Mexico are forecast at $28.5 billion each, also unchanged from 2022. ■
The phrase “Grow Something Good” has spread throughout our branches and communities through our Impact T-Shirts. The shirt adorns the saying and is used to reward youth for their positive impact on their peers and local community.
Throughout the summer, branches ordered more than 1,500 shirts to give away in their communities. Branches have been active in rewarding 4-H members, FFA students, and other youth who exemplify characteristics such as kindness, giving, reliable, and hardworking. We have loved seeing this next generation of agriculture leaders in their shirts, so don’t forget, if you received an Impact Shirt, tell us
your story! Show us your something good on Facebook and Instagram and send an email to marketing@greenstonefcs.com to have your story featured on our blog.
If you see someone wearing this shirt in public, make sure to congratulate them on their positive work! The world needs beneficial youth for a strong future and we hope to inspire more through this campaign! ■
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Youth of all ages can make an impact in their community! Three year old Presley Wiese, pictured here, made an impact at her local fair in Brown County, WI.
Dedicated to you and your success, GreenStone is excited to offer producers valuable industry insight during the cooperative’s 2023 Producer Prep Meetings. During each educational meeting, producers will hear from industry experts on a variety of the following topics: developing a marketing plan, understanding what financial products are available, transition planning, risk management and bookkeeping, and more. You’re invited to attend a meeting near you as you prepare for your 2023 planting season.
• February 1 - Sanilac County: Benchwarmer’s Bar and Grill, 440 W. Sanilac Road (M-46), Sandusky, MI
• February 2 - Lenawee County: GreenStone Office, 5285 W. US-223, Adrian, MI
• February 7 - Ionia County: Wagon Wheel Restaurant, 7888 E Grand River Ave, Portland, MI 48875
• February 8 - Isabella County: Comfort Inn, 2424 S. Mission Rd., Mt Pleasant, MI
• February 9 – Outagamie County: GreenStone Office, 340 Patriot Dr., Little Chute, WI 54140
Each meeting is from 9:00 a.m. –1:00 p.m. and both a light breakfast and lunch will be provided. Meetings are free to attend, however, registration is required. Register at www.GreenStoneFCS.com/ ProducerPrep ■
Get into the hunting season spirit and win dollars for your deer during GreenStone’s Annual Deer Challenge!
For over ten years, and again this hunting season, GreenStone will be giving away a total of $1,000 in cash prizes during the Annual Deer Challenge. Hunters who reside in northeast Wisconsin are invited to participate for the chance to win big bucks now through Friday, December 4, 2022.
The challenge features both adult and junior classes, with cash prizes awarded in each group:
Adults (18 years and older)
• First Place - $400
• Second Place - $200
• Third Place - $100
Junior Buck (17 years and younger)
• First Place - $200
• Second Place - $100
Along with the prizes, all entrants who harvest a deer with any legal gun, bow, muzzleloader or crossbow will be entered into a drawing to win a game camera or a $25 gift card. Trophies will also be awarded to junior hunters who harvest their first deer.
To qualify, deer must be harvested in northeastern Wisconsin or Michigan’s upper peninsula and the hunter must reside in GreenStone’s northeast Wisconsin territory. The completed form can be dropped off at one of our five Wisconsin branches in Clintonville, Coleman, Little Chute, Manitowoc or Sturgeon Bay, or online by visiting www.GreenStoneFCS.com/ DeerChallenge
Good luck to all hunters
season!
GreenStone Offices Closed In honor of Thanksgiving (24-25)
Michigan Farm Bureau Annual Meeting (11/29-11/30) Amway/DeVos, Grand Rapids with virtual options
Wisconsin Farm Bureau Annual Meeting and Young Farmer and Agriculturist Conference (2-5) Wisconsin Dells, WI
Great Lakes Fruit, Vegetable and Farm Market Expo/Michigan Greenhouse Growers Expo (6-8) Devos Place Convention Center, Grand Rapids, MI
GreenStone Offices Closed In honor of Christmas (23-26)
GreenStone Offices Closed In Honor of the New Year
Michigan Sheep Breeders Association Shepherd’s (6-8) Lansing, MI
Dairy Strong Conference Monona Terrace, Madison, WI and virtual
Great Lakes Crop Summit (26-27) Soaring Eagle Resort, Mt. Pleasant, MI
As the weather chills and leaves fall, students have packed their bags and are back to the bustling college campus. The hands-on work and crucial skills they gained this summer will follow them back to campus and to any other adventure they take on.
Before the interns made the journey back, they finished their time at GreenStone with a cumulative presentation in front of the whole company. These 29 interns highlighted their challenges and rewards, their biggest learning moments, and their favorite
memories from the summer for everyone to hear.
The best part - each intern came to the same conclusion: they have grown tremendously through their projects and will cherish the knowledge they gained and the people they
worked with. They will be leaving with a new friends, a network of supporters, and real examples of their abilities in the workforce.
Intern positions varied, as they all worked in a variety of departments and on projects ranging from analyzing financial statements and credit narratives, to counting cows for farm appraisals, to recruiting GreenStone's new hires, and so much more. Since the beginning of May, interns worked virtually, in person, or both! They thrived in a flexible environment that mirrored the common shift in today’s workforce. Learning how to work efficiently in both environments prepares them for any future career environment they may encounter. Along with completing real world projects that are important to the success of GreenStone, interns were able to attend multiple intern events. These experiences ranged from completing an escape room, attending lunch-and-learns, and touring Moo-Ville, a local robotic dairy farm. Events focused on networking, professional development, and fun! Lunch-and-learns explored topics such as resume building, the hiring process, and personality tests to provide a strong foundation for the next steps in the interns’ careers.
Congratulations to all of the 2022 interns! We can’t thank this team enough and we wish you the best of luck in all your future endeavors! ■
GreenStone is pleased to announce the promotion of Kimberly Brunner as its Executive Vice President and Chief Financial Officer.
Kim assumed the new role on August 1, 2022, in sync with Travis Jones transitioning to the chief executive officer leadership position for the association.
“Kim’s focus on both the details and the impact they have on others sets her apart. Having seen her knowledge and approach while she supported the association through her role at AgriBank, we knew we were fortunate to gain her experience when she joined GreenStone,” said President and CEO Travis Jones. “On top of that, having worked directly with her over the last several years, I am confident she’ll provide strong leadership and financial discipline to help assure the ongoing financial strength of our cooperative.”
Kim began her career in the accounting and financial space over 30 years ago, earning a bachelor’s degree from University of Northern Iowa
and becoming a CPA. She gained excellence in her skillset throughout her career in business financial analysis, auditing, internal controls, and financial reporting. Kim has served in several financial roles over the years, having spent the last decade working within the Farm Credit System, first at AgriBank prior to joining GreenStone in 2019. She most recently served as the senior vice president of finance and operations for GreenStone where she was responsible for financial reporting of internal controls, management of external financial audits, leadership of GreenStone’s operational team throughout its 35 locations, and overseeing various risk control measures for the association.
As the CFO, Kim will be responsible for providing strategic and operational leadership to issues affecting GreenStone’s long range financial viability, as well as day-to-day financial activities. She will be focused on the association’s finance and accounting activity, as well as the operations and facilities management teams.
“I am honored with the opportunity to continue providing leadership to the GreenStone team and its members,” Kim affirmed. “I’ve admired the focus on delivering quality and superior services to our members, and I’m committed to ensuring those values come with a sustained strong financial base to continue our mission long into the future.”.
Home runs in the left field may lead to a baseball filled garden for Wisconsin’s Timber Rattlers. The Timber Rattles baseball team has teamed up with GreenStone to combat hunger in their community through a donation garden. Located behind the left field of Fox Cities Stadium, over 100 pounds of produce is being grown for donation!
Seth Merrill, Timber Rattlers Director of Business Development, has been involved with the garden since 2018. Since then, the garden has donated over 1,000 pounds of produce to St. Joe’s food pantry. With the help of Freedom High School FFA Chapter, planting begins in mid-to late May. This year they planted tomatoes, summer squash, and green peppers, and tended the garden all summer until harvest in mid-July.
This is truly a community garden - everything from planning, planting, to harvesting is done by the community for the
community. The garden creates an opportunity for Freedom FFA to serve, a value in their FFA Creed, and learn while doing it. They are able to learn the skills of planting and maintaining a garden for a bountiful harvest.
Ensuring a bountiful harvest is a huge relief to the food pantry.
“St. Joe’s food pantry is always very grateful for the vegetables we are able to provide from the garden. Being able to offer these fresh vegetables is also very rewarding for me,” explained Seth Merrill.
For Seth, the garden provides a nice getaway during the busy workday, and he enjoys the joy it’s brought to everyone involved.
“Since its inception, the garden has been a great addition to our ballpark. I enjoy being able to step away from my desk and go down to the garden. It’s a great diversion during the workday.”
“For this garden to work, we truly needed a great partner.
GreenStone has been the perfect partner, and this is a great partnership that directly impacts our community in a positive way,” explained Seth.
As a member-owned cooperative, GreenStone values the opportunity to continuously volunteer and give back to the community. Even
though the gardening season is wrapping up, GreenStone’s commitment to rural and agricultural communities is not taking a strikeout. To learn more about our other commitments to the community visit www. greenstonefcs.com/resources/ open-fields-blog. ■
Customers appreciate personalized support, trusted experience, and engaged communication in their cooperative partnership, with 95% satisfaction.
It’s first on a set of four foundational values for all 600+ GreenStone employees: CUSTOMER FIRST. As a cooperative owned by our customers, that may seem intuitive, but it’s not just a statement. It’s a culture of putting the customer at the center of everything we do – from what products we offer, to how much we spend, to how we communicate. Each decision is made from the customers’ perspective – what is best for them. And once again this year, our customers confirmed we’re exceeding their expectations, returning 95% customer satisfaction!
In an annual survey, GreenStone once again scored above industry averages with a 95% overall customer satisfaction rating in 2022. A slight rebound from last year, 2022 rating marks 21 years of
consecutive service above 90 percent for the member-owned cooperative. Not only did overall satisfaction tick up, so did the percent of very satisfied customers – the top of the seven-point scale.
“Along with the overall high satisfaction, what is even more encouraging is that customers feel the same way no matter which product or service they receive from GreenStone. Our farm, country living, and agribusiness loan customers all feel we’ve once again improved their experience, just as our crop insurance and tax, accounting and payroll customers shared,” explained Travis Jones, GreenStone’s new president and CEO.
“Part of our success is because we're always listening to our customers. We don't just get a score, our customers have an opportunity to comment and we read every one to make sure we're meeting the needs of our customers,” Jones continued.
Along with the specific satisfaction ratings for the cooperative’s breadth of products and services, customers provided candid feedback on their experience with GreenStone and expectations of their financial partner. Words like trust, communication, care, knowledge, friend, available, adapt, simple and local, permeate through the survey responses – all
characteristics of GreenStone’s relationship-based culture that remains part of the cooperative’s foundation.
Among the most prominent topics commented on was appreciation for the unique benefit of their cooperative membership –Patronage! Through the profitsharing program, members received $115 million back in their pockets in March 2022, nearly 45% of the cooperative’s net profits went right back to its members. This value is on top of the personal service GreenStone teammates prioritize each day.
“I’ve always believed GreenStone is one of the best performing financial institutions in the country, and our customers confirm that each year. When you combine our financial strength and member benefits with our employee engagement scores and customer satisfaction results, it’s clear this is a pretty special place,” said Jones. “This culture of putting our customers first, delivering quality, doing the right thing, and getting involved is the result of a century of collaborative focus. I'm excited to continue working with this high performing team committed to living these values to best support our customers and their personal and business dreams.”.
Thank you for awarding me a scholarship. As a kid who grew up around agriculture and sees the constant need for its support, I greatly appreciate all that you do for our community. Thanks again!
Thank you very much for supporting the Manitowoc County Dairy Judging Team and being a Junior Champion level sponsor. We had an amazing time judging, touring farms, and sightseeing in Scotland, Ireland, and London. It was an experience we will never forget! Thanks again for your generosity in marking our trip possible!
Thank you so much for your support of the Wisconsin Association of Agriculture Educators summer conference. We could not be successful with our students without your support of our learning. Your support is so appreciated!
I’ve always believed GreenStone is one of the best performing financial institutions in the country, and our customers confirm that each year.
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In this issue of Behind the Scenes, we hear from three agribusiness lenders as they speak about their role at GreenStone.
Describe how your role carries out the GreenStone mission of supporting rural communities and agriculture.
In my role I am helping GreenStone promote the mission by working to come up with solutions for my customers that will improve their businesses and help them feed America. The most obvious is providing financing, but as I work with them to understand their financing needs, I often uncover ways to support them beyond the loan, such as other services like crop insurance, accounting, tax preparation, and life insurance. I work to understand their future needs and evaluate how each project today impacts those plans.
How has being able to specialize in specific commodities allowed you to better service your customers?
In working with specialty crops it is important to learn about the industry. It helps to understand the operations, their marketing opportunities and ability to move the needle. Over the past ten plus years, I have worked with several specialty crops with extensive research done on blueberries. As I completed my Masters in Agribusiness I focused my thesis on profitability of the blueberry industry in southwest Michigan. My research included looking at other parts of the country and internationally where blueberries are grown, market channels, understanding the fresh and processed side of the business and the overall industry. This thought process can be adapted to all the specialty products we raise in Michigan. I believe this helps me to better understand, question, and partner with our customers.
What do you enjoy about your role?
I enjoy the diversity of the role. Some days are In front of customers on the farms and businesses exploring their livelihoods, others are working at a desk taking care of customers’ needs and learning more about the industry.
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In working with specialty crops it is important to learn about the industry. It helps to understand the operations...
Describe how your role carries out the GreenStone mission of supporting rural communities and agriculture.
My role as a lender with the GreenStone dairy team allows me to work with a specialized group of GreenStone members to provide them with high-quality, competitively-priced services, and to form long-term relationships with them so that their lender can have a positive impact on their business.
What is your favorite customer memory?
My favorite memories are the times I’ve been able to meet with farms that had three generations at the meeting. I’ve had a few instances where I loaned money to Grandpa and Grandma, then to their kids, and then to their grandkids. It can be both challenging and rewarding as the three generations do not always agree on the future path of the farm, but it is really rewarding when a plan falls into place and the farm continues to grow and be successful.
Describe how your role carries out the GreenStone mission of supporting rural communities and agriculture.
It is my role as a swine specialist to work to understand the changing needs of our pork producers as we meet with them at their farms, and assist them in obtaining and optimizing loans and other financial services from GreenStone to address those needs. Part of my role is to make customers aware of the full breadth of financing and financial services that GreenStone provides and suggest ways to help customers improve their farm’s performance, save interest, save time, or help them reduce risk.
I enjoy that my role allows me to work in numerous team settings. I’m part of the GreenStone dairy team which allows me to learn and work with our other Michigan and Wisconsin agribusiness lending experts. My team includes a group of analysts that help me put loan proposals together. And best of all, I really enjoy when a farm tells me I’m part of their team.
This past year, while delivering Patronage checks, I had the pleasure of connecting with multiple family members from one of our pork producers. In separate discussions, both expressed how grateful they were to GreenStone for how we had worked with them during the difficult times they faced in 2020 and in the years prior to it, and how that was so important to their farm’s future and to their families. They also appreciated that GreenStone had provided them some additional credit during that time which helped them to become more efficient and take advantage of new market opportunities along with optimizing their loan structure and reducing interest costs with interest rate conversions. Those discussions motivate me to keep trying to find creative ways to serve our pork producers and other customers!
The best part of my job is meeting with customers, particularly when it involves providing financing to help the farm to solve a significant, long-term problem or goal. The excitement that the customers have about the promise of the new opportunity or solution that is brought about in part with the financing that GreenStone provides, is something I am privileged to share in as their lender. It is very satisfying to know I play a small part in helping them succeed. GreenStone exists to serve our customers by helping their families and farm operations navigate both the challenges of farming and of transitioning ownership and management of the farm over the long term. I particularly enjoy customer meetings where multiple generations are represented in the discussions and decisions and getting to know the families better.
My favorite memories are the times I’ve been able to meet with farms that had three generations at the meeting.
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I’ve had a few instances where I loaned money to Grandpa and Grandma, then to their kids, and then to their grandkids.
GreenStone’s newly appointed CEO Travis Jones is at the helm of the more than 100-year-old organization and building upon the strong foundation laid by previous CEO Dave Armstrong.
Why GreenStone: “I've stuck around with Greenstone for 15 years. It's been easy. After my very first interview 15 years ago, it felt like home. The culture just came through. And after my second interviews, I told my wife this would be a great place to work. Since that day, I've always wanted to end my career here, and that's certainly still my intent.”
What keeps you motivated: “It's easy to be motivated on a daily basis. We've got the greatest customers in the world. They wake every day to work hard, to provide a dependable, affordable source of food, and our staff and our culture really support that. As the leader of this organization, I know I have to be here every day and be on top of my game because that's what our staff expect, and that's certainly what our customers expect. When they're waking up at 4:30 in the morning to feed the world, it's pretty easy to get motivated, to make sure that I'm here supporting our staff for Greenstone to be there for our customers.”
Who is Travis off the clock? “That starts with my wife Sue, with whom I have three children: my son Tyler (29), and my daughters Mackenzie (26) and Katelyn (23). They've all graduated from either the University of Michigan or Michigan State University. Two now have their own careers and the third is finishing graduate school. So that's been a change for my wife and I as our kids were very into athletics as they grew up. We kept very busy going from spot to spot depending on what sport and what season it was. Since they have graduated, we've gotten to spend more time together. We enjoy our cottage on Gun Lake, and have gotten into pickleball.
Although it’s more to stay active than for enjoyment, I also run each day.”
What’s your back story? “My connection with agriculture really started as a young kid. My grandparents had a small farm which my parents bought when I was five years old. So I got to grow up on a small farm in Chapin, Michigan. My grandparents were also part owners of the Owosso Livestock Sales. At a very young age I had a firsthand understanding of livestock auctions.
There were no better days than Thursdays when I went with my grandpa to haul livestock to the Owosso sales, watch the auction and hang out with him at the stockyard. I was very excited to come to GreenStone and reconnect with that agricultural background.”
Hear firsthand from Travis on his fond agricultural memories and his excitement for the strength and future of GreenStone and its members: www.greenstonefcs.com/ meettheceo
Travis, who previously served as CFO of the company, assumed his role as CEO Aug. 1, 2022, following Dave’s retirement. Throughout his 15-year tenure with GreenStone, Travis has consistently supported the rural and agricultural communities in Michigan and northeast Wisconsin with a primary goal to help them grow, thrive and succeed.
“Transitioning from CFO to CEO is certainly a big step, and it's a step that I've been preparing for,” Travis said. “I valued Dave Armstrong’s mentorship and really paid attention to his personal approach, forward-moving thought process and inclusive leadership, so it does feel like a natural progression to carry that forward. GreenStone has a fantastic team at every level, and that’s going to make this transition seamless.”
“GreenStone has been around for more than a century, and as I take the reins of the organization, we remain focused on continued solid growth through impeccable service to our members and
superior engagement within our talented team,” Travis affirmed.
With a commitment to “customers first,” Travis and the entire GreenStone team work with a mindset of customer satisfaction and consistent quality with an emphasis on individual solutions and support for agriculture and rural living as well as young, beginning and small farmers.
“Our young, beginning and small farmers are very diverse in terms of their farm size, location, products grown, services provided and the consumers they connect with,” he said. “We recognize the value in cultivating relationships with these passionate farmers and helping to mentor and guide them to be the next generation of successful farmers.”
With this appreciation built on top of his agricultural foundation rooted early in his life, Travis is eager to be a part of the cooperative's future success.
“I was very excited to come to GreenStone 15 years ago and reconnect with my agriculture background,” Travis said. “I know my grandparents would be proud of me, and my parents are grateful for the positive impact we’re a part of helping our members make. This is a very rewarding place to work, and I know firsthand we have some of the best customers in the world thanks to their role in feeding and serving in our rural communities!”
Beyond GreenStone, Travis is involved on the board of the Michigan Finance Authority to help provide impactful, affordable loans for cities, colleges and public schools; he also serves on the Michigan FFA Association board providing support to year-round agriscience curriculum and youth development activities.
easy to be motivated on a daily basis. We've got the greatest customers in the world.
The Executive Committee handles routine business matters with the CEO, such as meeting schedules and reports. Also, the committee reviews topics that may not be ready for full board deliberations, allowing the CEO to vet new ideas and discuss confidential information.
• Ed Reed, Chair
• Peter Maxwell, Vice Chair
• Dave McConnachie
• Mike Timmer
The Audit Committee provides oversight for the financial reporting process, internal controls, corporate compliance, and audit process for GreenStone. They also established the policy and procedures to be followed in reviewing complaints.
• Eugene College, Chair
• Bruce Lewis
• Ron Lucas
• Scott Roggenbuck
The Finance Committee assists the Board of Directors by monitoring the association’s financial and capital planning, asset and liability management and funding, and investment activities. They consider economic, competitive and regulatory conditions, monitor interest rate pricing, and review and approve risk measurement practices. The committee members are a resource to the board by maintaining a more in-depth knowledge of the association’s financial activities.
• Troy Sellen, Vice Chair
• Mike Feight
• Trent Hilding
• Marilyn Thelen
The Committee helps to develop the association’s legislative and public policy strategy that aligns with GreenStone’s priorities. They manage the coordinated action plan to support these issues that affect GreenStone, our members, and the overall Farm Credit System. As part of this, the directors work to stay abreast and engaged in legislative and public policy issues and activities impacting our members, rural communities and agriculture.
• Jed Welder, Vice Chair
• Terri Hawbaker
• Dennis Muchmore
• Dale Wagner
Compensation Committee:
The Compensation Committee is responsible for aligning compensation practices for GreenStone’s employees with sound operations and long-term performance, and providing, in an open and transparent manner, accurate, comprehensive, and understandable disclosure on its compensation programs.
• Peter Maxwell, Chair
• Ed Reed, Vice Chair
• Dave McConnachie
• Mike Timmer
Peter Maxwell, Board Vice Chair
GreenStone utilizes a board committee structure to ensure adequate review of policies, procedures, and functions while maintaining corporate governance and following Farm Credit Administration regulations in an efficient manner. We have quarterly committee meetings that generally last several hours, as well as occasional conference calls and/or virtual meetings. The board annually participates in training on committee functions.
The committee structure provides an opportunity for the members of the board to delve deeper into their specific
committees in a focused, efficient manner. Once the committees have hashed out recommendations or specific reporting requirements, the committee chairs report to the board to allow further discussion or propose motions to the larger group for approval. Personally, I have enjoyed the opportunity to network in a smaller group with fellow board members as well as members of management that report to the specific committees. If you know me very well, you know I am very inquisitive. When I was on the Finance Committee and Travis was CFO, I always appreciated him being available to answer any and all questions. In our discussions I quickly realized he and I were rooting for opposing Big Ten teams in Michigan, which added a little friendly back and forth banter… Go GREEN!
Committee Structure: GreenStone’s Board of Directors currently have five committees: Executive, Audit, Finance, Legislative and Public Policy, and Compensation.
The Audit Committee’s primary function is to fulfill oversight responsibilities in financial reporting, internal controls, audit process, and corporate governance. The Finance Committee monitors GreenStone’s financial and capital planning, asset and liability management and funding, and investment activities. The Legislative and Public Policy committee develops legislative and public policy strategies, manages an action plan that directs activities to support issues affecting GreenStone and the Farm Credit System. This is a very important committee that is continually looking out for our members’ best interests…don’t forget to support your GreenStone PAC!
The final two committees are the Executive and Compensation Committees of which I currently serve on with our Chairman, Ed Reed along with Mike Timmer and Dave McConnachie. The Executive Committee works with the CEO and other Executive Vice Presidents to provide leadership by reviewing and discussing organizational direction including vision, mission, and strategic objectives. We also review, discuss, and provide recommendations to the board for administrative and governancerelated activities. The Compensation Committee includes the same members as the Executive Committee and ensures management of GreenStone’s compensation programs along with developing a fair and reasonable senior officer compensation plan that is competitive in the marketplace. This committee also reviews performance criteria and evaluations and recommend the ratings and salary actions for the CEO to the board.
All committees are assigned by the Board Chair with the exception of the Executive and Compensation Committees which are elected by the fellow board members starting with election of the Chair, Vice Chair, and two additional members, respectively. This board reorganization process takes place at our August Board meeting following the annual election results for the cooperative that are announced in mid-June.
View Peter's bio video at:
Personally, I have enjoyed the opportunity to network in a smaller group with fellow board members as well as members of management that report to the specific committees.
Legislative
Successful farming operations take much more than getting up in the morning and starting a tractor, yet those are actions that are typical in the everyday start of a day in the life of a farmer.
A number of factors contribute to prosperity, including having a solid set of values and policies both on the farm and off the farm. Every operation defines for itself the action formula for success. Yet on top of all that, even more preparations for black swan events need to be taken.
A black swan is an unpredictable event that is beyond what is normally expected of a situation and has potentially severe consequences. For this reason, farmers may take many steps to diversify and protect their financial value, including crop diversification, multiple
locations, risk management like crop insurance, and technology adoption. Even with sound management actions, we must be on alert for black swans.
Enter the element of politics, and it can be difficult to predict the impact on agriculture. Current studies indicate that we have a vast division in politics and policy. Jersey color of political party seems to matter more and more. This requires some keen mental evaluation for some people, while for others it becomes clear quickly. With some clear thinking and overcoming political biases, it becomes apparent what is
best for agriculture operations and rural communities. Yet some elections results have and may continue to provide black swan events which could change the life of an operation. Imagine being a rancher on the Texas border, or a nursery in Michigan during the pandemic when you are shuttered from selling plants. Unimaginable events set from politics - black swans - change lives.
Agriculture and rural community values are identified, recognized, and appreciated as a common bond across the country. These values should not be forgotten as issues are sorted out through the campaign process. Sorting through the noise and discovering the truth may take some courage. Why courage? Things may not always be apparent on the face of the matter and deeper examination may be called for. Deeper examination is demanded to understand where policies may find foundation in values. Sometimes doing the right thing will create unwanted stress, but
action is always required. Fortunately, we all have the privilege of voting and with that vote we can influence outcomes. We tend to be shy about our values and vote our conscience. In these geopolitical times, it can feel like the best course of action may be to quietly go about our business, vote and pray the outcome does not produce a black swan. Courage may require a more active voice to avoid those black swans of politics. Hoping is waiting for someone to do something, and hope may no longer be the plan of action required. We may have to talk about things that matter. Agriculture matters, our communities matter, and our values matter. Even if we do not muster up the courage to speak, and we may not see all the black swans of political policy making until they arrive at our farm gate, we certainly can vote.
Your vote matters.
GreenStone’s outreach to legislators and partnering with other similarly minded agricultural organizations on legislative matters continues to bring focus on ensuring that 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 35 meetings have taken place with state Senators and Representatives at the capitol or out in the districts. Disbursements are also being completed to provide support to GreenStone customers running for the legislature this year. The majority of the meetings have focused on reconnecting 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 beginning the Farm Bill conversation and the need for it to provide a level of certainty for farmers and ranchers. Legislators recognize the importance of having a current Farm Bill because it could hamper the economic engine of agriculture. The House Agriculture Committee ranking member GT Thompson has also made a stop in Michigan and demonstrated he knows that the lack of a Farm Bill next year would likely result in rippling effects beyond rural communities. For GreenStone, we know the significant impact, and that is why we have engaged both urban and rural legislators to understand the issues of agricultural and rural communities.
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 and your involvement is welcome. Thank you for helping build the voice of rural communities and agriculture! ■
For 64 years, Hunters Creek Club in Lapeer County’s village of Metamora has been welcoming members for a full-scale outdoor experience.
The club opened in 1958 by Preston Mann just five miles down the road from its current location. In 1992, Preston’s son, Charlie Mann, took over his father’s business at just 26 years old and has been President and CEO ever since.
Charlie certainly was not new to the club. His father exposed him to the outdoor paradise for as long as he can remember.
“I started going to work with him from the time I was a toddler,” Charlie said.
Even though Charlie moved about an hour away to attend Michigan State University to earn a degree in Agriculture Economics, he always knew he wanted to come back to run the club.
“It’s fun,” Charlie said. “I’m outside everyday with great people. The people we work with are great people and our customers are great people.”
Those great people he works with include ten full time employees, along with his son Eric and wife Claudia.
Charlie said working with his family is one of his favorite parts of the business.
“I think this is the best part of having a farm or family business is that the togetherness is nice,” said Charlie. “At the end of the day, it’s wonderful to know you’re working for a common goal.”
a day
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So, what brings people to Hunters Creek Club? For Charlie, the answer is simple – an escape from the hustle and bustle of life.
“People love to get away from congestion and get out in the fresh air and be able to relax,” Charlie said. “At the end of the day, our product is giving them a place to get out and away from the grind. They appreciate the open space.”
The club has a little bit of everything including pheasant and partridge hunting, a 60 acre lake for blue gill and pike fishing and a full-functioning restaurant for their members.
Aside from enjoying some skeet shooting, pheasant hunting and fishing, the club also offers dog training. They train dogs how to use their natural instincts on the hunt and offer dog boarding and obedience training for non-members on their land.
Along with all of these offerings, you’ll also find a small herd of 30 cows grazing near the property. Handling cattle is something Charlie has been passionate about since college.
“When I was a student at Michigan State University, I went to the Beef Cattle Teaching Center, and developed an interest in cow and calf operations,” said Charlie.
Providing that help is something Tracy is more than happy to do. She loves the tradition that comes along with Hunter’s Creek Club.
“Charlie has great respect for his late father and the legacy that his father built at Hunters Creek Club,” said Tracy. “He has a business mindset and takes great pride in providing his members with the perfect outdoor experience. He puts 100% into everything he does. He stays hands-on and engaged in every aspect.”
Since his first land loan, Charlie has leaned on GreenStone for operating and equipment financing – something Tracy said happens often.
“It’s not uncommon for a borrower to need equipment loans or even cattle loans,” said Tracy.
Charlie said he works with GreenStone often because of the positive experience he has had.
“The culture at GreenStone is really great,” said Charlie. “Our branch office is very friendly. I’d definitely recommend GreenStone to someone else.”
Charlie sells their beef on the farm and some of it is used in the restaurant.
Where GreenStone Steps In Hunters Creek Club sits on some 1,020 acres of land –but it wasn’t always that large.
“We wanted to expand our acreage back in 2002 because we were really humming along,” said Charlie.
That’s when GreenStone comes into the journey. Charlie met with the Lapeer branch team to secure a loan to purchase more land. He says the process was simple. Charlie works with Financial Services Officer Tracy Jelinek. “She’s fantastic to work with as we have equipment needs or want to do infrastructure improvements, she’s always right there for us, to help us with a loan.”
And according to Tracy, that friendliness comes naturally, because she loves being able to help people’s dreams come true – like Charlie’s.
“To be able to work with farmers everyday and see their operations grow, make adjustments in good and bad times, is an honor and that’s what I enjoy,” said Tracy.
As far as the future, Charlie hopes to expand – but he is not giving away all of his big dreams.
“We have some dreams we’d like to work on, but we’ll keep them secret for a while.” ■
Left: Tracy and Charlie checking out the wildlife habitat.volutas
Right: Wildlife of all varieties can be found at the Hunters Creek Club! This painted turtle was hanging out during our visit.
We here in Michigan are very fortunate. We have more access to water than just about anywhere in the world.
I have heard that you are never more than two hours from one of the great lakes here in our state. I have never tested that theory, but I like to think its true. So, with so much water and so many corners of our state to try, how does one actually enjoy walleye fishing on the Detroit River, and also Lake Gogebic in the far west end? The answer is charter boats.
I grew up in Ludington, Michigan where it’s known as one of the larger ports for charter boats in our state. So, for me I just assumed each town was like the one I grew up in and that there were lots of folks that were itching to take you fishing. I quickly learned that isn’t the case but there are lots of folks around the state that would be willing to for a price. Price, that seems to be the sticking point for most folks.
Charter boats are not cheap – but maybe they are not so bad when you look at the big picture.
How much does it cost to go fishing? If you're dunking worms at Grandma's house off the dock, well that’s pretty reasonable. However, if you want to target salmon and steelhead, you need a lot of gear and a boat. Charter boats are a great way to lessen the cost of buying lots of gear, or at least learning what gear and boat to buy! I think charter boats are the best way to learn a body of water and learn the best tactics to target anything from UP trout to Saginaw Bay walleye.
Most of the charter boat captains that I have met are just guys who simply love to fish. That love of fishing draws them toward taking buddies, friends of buddies, family, friends of family, etc. Before they know it, they are taking people fishing more than they are fishing themselves, and all the while, they are learning more and more about the fish and the water. The love and knowledge combo is the great mix to make a great charter boat captain. These kind of men and women who are captains are an endless supply of information for the folks on board. They may not share every secret, but they share quite a bit.
So, if you’re looking to learn how to fish smallies on Burt lake, walleye on the bay, perch on Erie, muskies on St. Clair, or a king out of Grand Haven, a charter boat is the way to go. ■
During the month of August, GreenStone Farm Credit Services hosted a Facebook contest titled “Hooked On The Outdoors” where any commenter had the chance to win a charter fishing trip for themselves and a guest with the Michigan Out-of-Doors TV crew. With great excitement, a slew of hopeful participants shared their favorite summer memories exploring the great outdoors. Justin Gekiere of Richmond, MI shared a photo of his boat out on the water and was randomly selected as the one lucky winner!
The night before the charter trip, GreenStone Financial Services Officer Stevan Stoutenburg met up with Justin and his father Lou for dinner. After taking some time to connect, Stevan soon realized that Justin was an army veteran and served in Afghanistan at the same time as him. We continue to be amazed by the ways the outdoors brings people together!
The next morning the crew set out on their voyage upon the “Silver Addiction” with captain Mark Williams at the helm. It was a cool and choppy morning on the water, but the fish were biting! Justin, the honoree, reeled in the largest salmon of the day with seven salmon being caught by the group. Thank you once again to Michigan Out-ofDoors TV for partnering to provide this opportunity!
Whether you’re a ghost, vampire, or princess, staying safe this Halloween should be the number one priority.
No matter how you celebrate the holiday, remember these practices to help keep you, your family, and others safe.
While preparing your costume, no matter how scary, consider adding bright colors or reflective tape. This is also a great addition to trick-or-treat bags for greater visibility during the dark fall evenings. Making sure your child is easily seen ensures their safety while crossing the street and helps you identify them among a crowd. Another item to keep in mind while costume shopping is sizing. Costumes that are too big or have dragging pieces lead to easier tripping and increased injury. A fun night can easily turn into a night at the ER with a trip over the curb or fall down the stairs.
Many costumes also include elaborate face painting or colorful eyes. While these additions can make any costume more fun, they can also lead to irritation. Many face paints and contacts sold for Halloween purposes contain toxic ingredients that children could be allergic to. Instead, try to purchase non-toxic or hypoallergenic brands and only wear contacts recommended by an ophthalmologist. It can also be beneficial to test the makeup on a small patch of skin ahead of time. This will allow you to check for any irritation before lathering it all over to help avoid a very grumpy child with itchy and irritated skin on Halloween night.
While out trick-or-treating, there are a few things to remember. Children can easily become overexcited and run into dangerous areas; holding hands is one good way to be able to react and help stop them. When moving from street to street, make sure to always cross at designated cross walks. Even when using a cross walk, stay alert! Drivers can easily become distracted by decorations, costumes, or their phones.
If you are passing out candy to the local kiddos, complete a safety checklist to prevent any injuries on your property. Start by removing any tripping hazards on your steps or porch. Garden hoses, bikes, toys, and lawn decorations can all become a hazard for a trick-or-treater with a vision impairing mask or for anyone in the dark. You can also sweep wet leaves off the sidewalk to prevent any slipping. If your pets are home, consider keeping them inside to prevent any unwanted attention. Costumes can be scary for pets and lead to unusual behavior. Even the nicest of dogs can be triggered by a mask, sword, or loud group of people.
Remembering these few simple details will help keep your holiday safe, fun-filled, and memorable! Plan your costume, enjoy dressing up with friends and family, and indulge in all the candy and excitement! Don’t forget- safe can still be fun! ■
GreenStone publishes regular updates on our Open Fields blog. Check out some of the posts you may have missed at www.greenstonefcs.com/ openfieldsblog.
Country Minute: Finding the right lender for your next home or recreational land purchase
Whether you are hoping to settle down in a new home in the country, purchase a second home for weekend getaways or hunting season or are looking to buy an empty plot of land, there are five main things to consider when looking for the right lender.
Country Minute: Home to Grow With
Finding your dream home can seem like a daunting task, especially for a growing family, but our GreenStone experts are happy to help you along the way!
Making Recreational Land Affordable Think you can’t afford to own recreational land? Think again! ■
The chilled air and fallen leaves mark a season of change. With this change comes a major shift in family schedules. With children in school and the first sports season wrapping up, parents are busy shuffling to and from work, and kids’ school, practices, and games.
After several weeks of this, you're wondering how to find time for a healthy dinner in between taking the kids to practice, remembering their football cleats, and still trying to make it home for a decent bedtime. Try these tips and tricks for simple, yet healthy, meals on the go!
First, begin by understanding the nutritional needs for a growing child. Kids need a variety of proteins, carbohydrates, fruits, vegetables,
and healthy fats every day to stay energetic, prevent injury, and maintain a healthy lifestyle. This may sound like a lot to ensure every day but dividing them by meals is a simple solution.
For breakfast cross off the whole grains and carbohydrates with a whole grain breakfast cereal or whole wheat toast. Oatmeal is another quick and easy option, and you can include fruits to meet another requirement on the nutritional list! Children, especially athletes, need carbohydrates in their diet to provide a source of energy for their body. Without carbohydrates, the body will be running on empty. Beyond the food, breakfast might also provide that perfect time to have that sit down family meal that you won’t be having at dinner time. Use this time to make sure everyone is prepared for their after school activities, understands the weekly schedule, and is doing well in classes. Communication is key to keeping a busy lifestyle running smoothly.
For lunch, the school should offer a balanced meal. However, if you have picky eaters or prefer to pack a lunch from home, use this time to include a form of protein like chicken, fish, tofu, or yogurt. Incorporate a fruit or vegetable option and a healthy fat such as a peanut dip, peanut butter sandwich, or dark chocolate as a tasty treat. Last comes dinner. These meal ideas are all great for the on go because they can be
prepped ahead of time, stashed in a cooler, and are easy clean-up for eating in the car:
• Turn a meal into a cupcake size portion –such as a mini pot pie. Prepare them in a cupcake pan the night before to be able to quickly warm them. The cupcake size bites allow for easy on-the-go eating, and a pot pie meal checks the box for vegetables, carbohydrates, and protein!
• Another meal idea is turkey taco salad. No more giving up your Taco Tuesdays! Grab a portioned container, cook your favorite taco meat, add some lettuce, salsa, and cheese and you’re all set! Portioned containers are great for meal prepping because they prevent soggy foods and serve as a plate in the car. After finishing your meal, throw the lid back on and bring it inside to wash for the next dinner.
With these tips in mind, you’ll find hundreds of healthy on-the-go recipes online for your busy evenings. It may require more prep on the weekends, but will ensure a smooth sailing weeknight with the kids.
When bellies are full on healthy food, your kids will perform better on the field and in the classroom and will have overall better moods. Say goodbye to fast food and hangry kids, and your body will also thank you! ■
Step 1
Combine potatoes, water, ham, celery, and onion in a stockpot. Bring to a boil, then cook over medium heat until potatoes are tender, 10 to 15 minutes. Stir in chicken bouillon, pepper, and salt.
• 3 ½ cups peeled and diced potatoes
• 3 ¼ cups water
• ¾ cup diced cooked ham
• 1/3 cup diced celery
• 1/3 cup finely chopped onion
• 2 tablespoons chicken bouillon granules
Step 2
Melt butter in a separate saucepan over medium-low heat. Add flour; cook and stir until thick, about 1 minute. Whisk in milk; cook and stir until thick, 4 to 5 minutes.
Pour milk mixture into the stockpot; cook soup until warmed through.
Source: Allrecipes ■
• 1 teaspoon ground white or black pepper, or to taste
• ½ teaspoon salt, or to taste
• 5 tablespoons butter
• 5 tablespoons all-purpose flour
• 2 cups milk
(For a thicker soup and to customize to your taste buds include extra veggies of your choosing)
Micro Farm provides protection against the loss of insured revenue due to unavoidable natural causes of loss during the insurance period.
Growers who take this policy are ineligible to utilize any other underlying policy, except for NAP coverages. Coverage levels range from 5085%, with an 80% premium subsidy through 75%, and lower for coverage levels of 80-85%.
Sales close for late fiscal tax filers is November 20, 2022, and March 15, 2023 for calendar year filers.
The Risk Management Agency has created a new policy for producers with an approved average revenue of under $350k annually.
Micro Farm crop insurance is a heavily subsidized policy, which results in relatively low premium for producers compared to individual crop policies. This is a simple form of the Whole Farm Revenue Protection policy that provides a revenue safety net for all commodities combined on your farm.
The liability limit for Whole Farm Revenue Protection (WFRP) producers has increased to 17 million per crop year, a significant increase from the prior limit of 8.5 million. WFRP provides a revenue safety net for all commodities combined on your farm. To see if this policy would provide the desired risk management for your farm, reach out to one of our crop insurance specialists today. ■
The Risk Management Agency (RMA) threshold for an Actual Production History (APH) policy review is $200,000. 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.
• Daily livestock feeding should be recorded daily.
GreenStone’s specialty crop insurance team can educate you on the details of this new option! Growers that fit under the $350,000 cap are encouraged to contact their agent as soon as possible to see if this policy would be a better option for 2023 coverage than their current elections. Though for most producers the sales close isn’t until March 15, 2023, it is important to make the decision prior to November 20 if any underlying coverage need to be canceled. ■
• 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.
• Co-mingled 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 agent 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. ■
November 20, 2022 is the sales closing deadline to change your current coverage or take out a new policy for the 2023 crop year. Premiums are not billed to you until August 15, 2023, and are due September 30. Your current coverage will carry over for 2023 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 (T-Yield) and 2023 prices have been recently announced. That information will be included in your renewal information later this year, or you can contact your crop insurance specialist for more details. ■
Growers can now have optional units by type, where they can have independent coverage for canner and briner type processing sweet cherries. Contact your specialty crop insurance specialist for more information. ■
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 (NOL) 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. It is the insureds responsibility to contact their crop insurance specialist if they have or think they have a loss. ■
Please be aware that any production from 2021 being carried over into the 2022 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 you need a bin measurement, call your specialist.
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 especially important. Corrections or changes cannot be made after the reporting deadline. If you have any questions or would like assistance, just contact your local GreenStone crop insurance team.
Fast forward to 2020, and John’s grandsons Dan and Jason Lake were able to work with GreenStone to secure a land loan to gain much of this special land back.
“It’s something I always wanted but I never honestly thought this land would become available,” Dan said about the purchase. “To be honest, this whole deal wouldn’t be possible without GreenStone.”
“It’s a sense of accomplishment, it’s a sense of pride, it’s really a blessing from God,” said Jason. “I did not know how this was ever going to come about. It’s something I always wanted to have happen, it was a vision and the hope, and I’m just shocked that it has come together.”
But it’s not just fruit that’s growing along the breathtaking Elk Lake, it’s a family business with rich history.
Before the Civil War, Joseph Sours purchased 130 acres of land for just $1.25 an acre. The farm eventually was passed down to Joseph’s son, Frank Sours, but unfortunately during the great depression, the family lost all but 12 acres of the land, which Joseph’s Grandson John Sours maintained.
The long rows of apples and cherries surround Dan and Jason’s mother and father’s home. Because Dan and Jason have full time jobs outside of farming, they lean greatly on their father Larry and mother Sally to help keep the orchard going.
Dan works as a special education coordinator in southeast Michigan, and Jason works in manufacturing in Charlevoix, Michigan.
“I couldn’t do this without help,” Dan said. “Certainly my dad, Larry Lake, has been instrumental in the success of this. My summers lighten up because it’s a school district so I can do a lot more in the summertime. Whatever needs done, we find a way to do that. If I’m not there, Jason’s there. If Jason’s not there, I’m there. If we’re not there, my dad’s there.”
“It’s a struggle to make it all work right now,” said Jason. “It’s a lot of give and take. There’s time where one person may feel like they’re holding up the whole world, which isn’t the case but it surely feels that way. We have to coordinate and work together.”
Jason also said he couldn’t take all of this on without the help of his wife, Kathy Chamberlain-Lake, who is no stranger to growing fruit – between her full-time job at a produce company and her upbringing.
“I grew up on ten acres of cherries also, so for me it’s kind of like coming home in a sense,” said Kathy.
The biggest part of a successful fruit farm is a successful crop. Cherry planting has been in the Lake family for years, but growing apples is new to them. Between pruning the trees and spraying them at the right time, the brothers had a lot to learn.
Dan and Jason work together to make sure the orchard is being taken care of at all times, but there are some things you can’t control when it comes to farming. They work with GreenStone to make sure their apples are covered by crop insurance for that extra layer of protection – because they never want to be in the situation their ancestors were all those years ago!
The plan Dan and Jason chose covers all the bases. Their insurance protects the quality of their apples, along with the quantity.
“It’s just a peace of mind,” said Dan. “If there’s a disaster, I know I’m going to be able to pay the mortgage and make my payments and pay the bills. Without that, if something went
wrong, I’d be in real trouble.”
As beginning farmers, they are not only dealing with the weather and market risks every farmer faces, but they’re also learning the ropes of farming as they go. Hence, the brothers also, in part, qualified for the Beginning Farmer and Rancher subsidy which provides an extra 10% subsidy on the policy for even more protection for their new orchard business.
Crop Insurance Specialist Trevor Gernaat helped them create the perfect crop insurance plan for their unique situation.
“It has been really neat to hear their story,” said Trevor. “Very early on in our relationship, learning the backside of their story was really cool because I could tell how proud they are. It’s been pretty special to be a part of that story and to be able to help protect something so special to them.”
The future is fruitful for the Lake brothers. Dan and Jason hope to eventually make the farm their fulltime gig.
“We would like to retire into farming,“ said Jason. “That’s what we’re trying to get to. God willing, we would continue to expand and we would want to do it as adjacent as possible.”
Dan and Jason are happy to keep working with GreenStone to make their dreams happen – between land loans and crop insurance.
“It’s nice having it all under one roof, one company,” said Dan. “Trevor makes the process pretty simple.”
And Trevor is happy to continue being a part.
“They are very proud of their story, it’s really humbling for them to be able to have that family aspect and be involved in the farm,” said Trevor.
Full-time or not, the brothers are just happy to have this land back in the family all these years later, and be sure they are secure no matter what Mother Nature throws their way
“There’s a difficulty to work through but there’s a tremendous sense of accomplishment that comes along with this, and I feel like I’m working in my forefather’s footsteps,” said Jason. ■
Forage Underwriting Report Signature Due
Final Plant Date*
End of Insurance Period (loss reporting deadline) for Fall Crops
Final Claim Reporting Date for Dry Beans
End of Insurance Period (loss reporting deadline) for Apples
Wheat Production Reports Due
Wheat & Forage Acreage Reports Due
Final Claim Reporting Date for Sugar Beets
Fruit Sales Close Date & End of Insurance Period for Grapes
End of Insurance Period (loss reporting deadline) for Spring Crops
JANUARY
Fruit Acreage/Production Reports & Pre-Acceptance Worksheets Due
* Please note that some dates can vary by County. Please check with your Crop Insurance Specialist for specific dates if you are unsure.
The Employee Retention Credit (ERC) continues to be a hot topic and provides potential for large cash refunds for those farming operations that can demonstrate the required decrease in gross receipts or other COVID-19 related shut-down parameters from Q2 2020 through Q3 2021.
The Employee Retention Credit (ERC) continues to be a hot topic and provides potential for large cash refunds for those farming operations that can demonstrate the required decrease in gross receipts or other COVID-19 related shut-down parameters from Q2 2020 through Q3 2021. GreenStone has helped numerous customers to receive this credit, with some exceeding $100,000 in refunds!
The ERC was designed to help businesses that stayed open and kept their employees on the payroll during periods of COVID-19 related shutdowns. The rules surrounding the ERC changed numerous times since its initial release –at first you could not claim it if you also received a Payroll Protection Program (PPP) loan, then it was set to expire in 2020, next it was changed so PPP recipients could also receive the ERC, and so on. Remember how crazy the PPP rules were and how frustrating it was with all of its revisions? The ERC was similar. For that reason, the ERC may have fallen off your radar. Luckily, the IRS allows employers to claim the ERC by filing amended employment tax returns (941-Xs or 943-Xs).
More detailed information on the ERC can be found at: https://www.irs.gov/newsroom/employeeretention-credit-2020-vs-2021-comparison-chart.
How is eligibility determined? In order to be eligible in any given quarter, a farming operation must have paid nonrelated party employees, have paid payroll tax, and have experienced the following calendar quarter gross receipts reduction:
- A 50% reduction when comparing 2020 to 2019
- A 20% reduction when comparing 2021 to 2019
Note: The ERC is not allowed for H2A employees, wages paid to owners, or on self-employment income. Gross receipts are tested using aggregation rules similar to what was used for PPP2 loan eligibility. Additionally, if you are eligible for any quarter based on gross receipts reduction, you are automatically eligible for the following quarter as well.
How large can the credit be?
- For 2020: You may claim up to 50% of wages (up to $10,000) per employee paid after March 13, 2020 and before January 1, 2021 (maximum credit of $5,000 per employee for the year).
- For 2021: Beginning January 1, 2021 to September 30, 2021, you may claim up to 70% of wages for a credit of $7,000 per employee per quarter (maximum wages of $10,000 per employee per quarter).
The ERC may be claimed on qualified wages regardless if the employee worked or not. This includes health plan costs to provide and maintain a group health plan, but only to the extent that those amounts are excluded from employees’ gross income. Health plan costs may be counted as qualified wages regardless if the workers worked or did not perform services. For workers who did not work, health plan costs are subject to the wage cap per year per employee for the credit.
These wages are limited if amounts were used as part of any PPP forgiveness applications (i.e. a customer cannot “double dip” with these wages and receive an ERC for wages already used in the PPP forgiveness process).
What information do farming operations need to provide to determine eligibility and complete any necessary payroll form and income tax return amendments?
- Quarterly income statements for 2019, 2020, and 2021
- Income tax returns for 2020 and 2021
- All payroll reports for 2020 and 2021, including payroll registers and filed payroll tax forms
- Details of PPP loans and forgiveness applications and expenses utilized, if applicable
When does a 941/3-X need to be filed? According to the Form 941/3-X instructions, employers may correct overreported taxes on a previously filed Form 941/3 if the Form 941/3-X is filed within three years of the date Form 941/3 was filed or two years from the date you paid the tax reported on Form 941/3, whichever is later. This means customers could have up until January 31, 2024 (for the year ending December 31, 2020) or January 31, 2025 (for the year ending December 31, 2021) to file 941/3-Xs to claim the ERC. However, our recommendation is to do this sooner rather than later.
What else do you need to know? This credit is taxable in the year that any credit you receive relates to - so if your farming operation receives $20,000 in ERC refunds for 2021 and you have already filed your 2021 income tax returns, you will need to get those amended and recognize the refunds as a reduction to payroll expenses. Buyer beware – what are we seeing in the marketplace? There are providers flooding the marketplace to assist you in securing these credits. Be incredibly careful of who you work with in the ERC process – not all providers have the same experience and knowledge. We have seen the following occurring:
- Certain providers are taking an extremely aggressive position by ignoring gross receipts reduction requirements or defining “nominal” impact due to COVID in a way that qualified nearly everyone.
- Certain providers are charging fees on a contingent basis as a percentage of the credit that the employer receives – fees as high as 30% of a credit.
- Certain providers are not explaining that if you qualify and receive this credit, it is taxable to and you need to recognize it in taxable income – which means there are tax filing impacts and likely a requirement to amend previously filed tax returns.
Individuals file a 2021 income tax return (Form 1040) if an automatic six-month extension was requested.
Corporations file a 2021 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.
Corporations deposit the fourth installment of estimated tax for 2022.
- Certain providers asking for strange information from employers – we have seen some asking for drivers’ licenses and copies of bank statements. No provider should need this information for purposes of filing for the ERC on your behalf.
Please be careful with whom you are working with and be conscious of the information you give them. Make sure you are collaborating with a provider that you trust and who has your best interests in mind. The IRS has a statute of limitations of 5 years to audit ERC’s and they have already communicated that it will be a point of emphasis for them. Make sure you are eligible if you proceed with the credit. Keep excellent documentation to support your eligibility and the credit you receive. If you are interested in learning more about anything you read within this article, contact your CPA or a local GreenStone tax accountant. GreenStone offers a full array of accounting services for farmers and other business owners and are ready to assist you in accurately understanding what ERC benefit may be available to you! ■
Once the code is executed, the bad actors can gain control of the workstation.
Matthew Cosgrove GreenStone VP of Information SecurityScammers also have access to a treasure trove of public records. Public records are supposed to provide a means to promote government openness and transparency. These records supply information about people, properties, taxes, and other issues. This information includes court documents, marriage certificates, and public mortgage records which includes the amount borrowed, the interest rate, loan term and the institution that hold the mortgage note.
With the back to school rush and the upcoming holidays, new devices may be on the agenda. That may include purchasing a cell phone for your middle schooler and a laptop for your college freshman, or even a new tablet for the family to share. Every device that is connected to the internet exposes you to a range of cyber security threats including malware. Attackers often use discovered flaws in software to attack these devices. That could be a newly purchased tablet or laptop; even smart light bulbs and plugs could be a victim of a software flaw.
According to the National Vulnerability Database (NVD) there have been over 17,000 vulnerabilities published in 2022. That is an average of 68 vulnerabilities per day. In August, there was a handful of zeroday vulnerabilities that received national media attention. Microsoft published fixes for vulnerabilities that could let attackers run malicious software when a user clicked a link. Apple released an update to their operating system to deal with two zero-day vulnerabilities. Similarly, Google issued updates to their Chrome browser addressing numerous zero-day vulnerabilities. These software flaws also impact some technology in tractors, where software flaws allow highlevel system access to the machine. All these software flaws could allow attackers to run and execute code potentially gaining total control of the device. These software flaws could easily be addressed by applying the appropriate software update or device patch. Applying these software and device patches is often overlooked or skipped alltogether. Patching is one thing everyone can do to significantly improve their digital security posture and is quite simple to do. In most
cases the application or device lets you know there is an available update that needs to be applied. There are all sorts of reasons why people do not patch their devices and applications: it interrupts my work, it takes too long, and our favorite one is the patch will do more harm than good.
Patching is like maintaining your car. It will still run without maintenance but driving often becomes more dangerous the longer you go on without a tune-up. Here are a few tips to help minimize down-time and interruptions while keeping your software up to date.
• Microsoft Windows Operating System you should enable the “Automatic Updates” feature. This feature will keep Windows patched and updated as these updates are released. You can also enable the “Receive updates for other Microsoft products when you update Windows” advanced feature to get updates for MS Office and other products when you update Windows. Microsoft releases these monthly security updates on the second Tuesday of every month, this is often known as “Patch Tuesday”.
• Apple iPhone or iPad: you should enable “Download iOS Updates” and “Install iOS Updates” automatically to ensure that your device stays current with the latest security fixes. You also need to apply updates to applications that are installed as well.
• Android Phones or tablets: you should check for system updates by opening the Security feature and tap the “Google Security checkup” button.
• Third-Party applications installed on your computer like Java or Adobe Reader download the updates directly from the vendor’s website and if the option is available enable “Automatic Updates”. There is an application “Patch My PC” that can help simplify keeping those thirdparty applications updated. Patch my PC scans to detect installed applications on your computer and provides an easy way to upgrade these applications.
With the number of devices increasing in every household and farm field, it is more important than ever to make sure we are taking the steps to ensure that these devices are being patched to ensure they are protected against the ever-increasing amount of software flaws. ■
