Employee
Credit (ERC) information is flooding the
Many are receiving promotional materials in the mail advertising a potential credit based on publicly available PPP information.
eligibility is not guaranteed and caution is advised.
3 CEO Comments. President and CEO Travis Jones shares his hope for the new planting season and affirms the financial strength of GreenStone.
11 Guest Article. Environmental regulation recently-announced (December 2022) includes new definition of waters of the United States, or WOTUS.
13 Market Outlook. The U.S. economy looks to be in the process of rebalancing after experiencing significant volatility over the past few years.
18 Your Voice Matters. The time is near when GreenStone members select the individuals to help guide the cooperative into the future.
23 Directors’ Perspective. GreenStone Board of Directors represented GreenStone’s 28,000 members at the annual Farm Credit meetings.
25 Legislative Matters. Every five years, Congress passes legislation that sets national agricultural, nutrition, conservation and forestry policy commonly referred to as the “farm bill”.
26 PAC Progress.
Thank you for being a champion of our communities and the agricultural industry!
31 Guest Column.
It’s spring time, and that can have lots of different meanings to different people.
33 Season of Self Care. Even the smallest change can have a global impact and this spring is a great time to begin!
41 Weeding Out Check Fraud. With the advancement of technology, the risk of fraudulent checks has increased significantly. Here's what to look out for. 8
Distractions, competing priorities, the unexpected surprises… there’s only so much time in a day, and each day we try as we might to squeeze as much into it as possible. From my experience on my family’s farm, that not only describes my life thanks to two career driven parents with three young sports and agricultural enthusiasts and a family desire to give back to our community, that’s the life of many families… and all farmers.
With so much competing for those precious hours in the day, we’re pleased to have been able to provide resources and insight to all who joined us recently at producer forums, construction seminars, dairy meetings, timber forums, and the CultivateGrowth conference to benefit their farm and family. One of which you can read more about on page 5 – Kristi Keilen was among a panel of young, beginning and small farmers who shared their story and personal insight with those at GreenStone’s CultivateGrowth Conference in March, recapped on page 21.
For some, the race of life leads to the opportunity to slow it down a notch; like the Ostapaowicz’ did with their retirement retreat, find their story on page 27.
Regardless what’s on your to-do list, voting in GreenStone’s annual elections won’t take much time. We’ve made it simple and convenient for you to submit your vote for your nominating committee and directors. Ballots will be mailed May 8, and you’ll get all the details on page 18.
As the sprint of the spring season ensues, we hope you’ll find a few moments to learn, grow, live and connect with us through this issue of Partners.
Here’s to an inspiring spring as the new season of growth transpires!
– MelissaCassie
Amber
Markie
Melissa
Amber
Art & Design
William Eva
Hailey Gilbert
Greg Ricker
CEO Comments:
My parents were very young when I was born, and my dad was an excellent athlete. I have been lucky enough to see him play football, basketball, baseball and fastpitch softball. (It’s been too long since we have golfed, but I still wouldn’t bet more than $5 I could beat him.)
My wife and I played three sports in high school and so did our three children. My family has gotten fired up for the different sport seasons for a long time. But from a young age I also remember being fired up for another season: planting season. Dad didn’t farm a lot of acres but if your equipment isn’t that big, even a small number of acres takes time to get planted. I can vividly remember coming home from school on the bus and as we got close to home, I would try to determine how much dad had accomplished in the fields that day. (Dad is a retired teacher and coach. In the spring, many of his “sick” days were spent in the fields). Once home of course I would immediately ask mom to drop me off at the field dad was in so I could get on the tractor with him.
Apparently, I still get fired up for this season. My wife is extremely patient with me. If we are travelling in the car this time of year, I am constantly commenting on how far along field preparations are for what seems like every field from Owosso to Hastings or whatever direction we are headed. “This one is planted but the one across the road hasn’t been touched.” (When she turns on the radio, I know I have reached my limit of commentary.)
We all hope and pray the weather cooperates this spring and planting season goes well for all of our members!
Current forecasts for net farm income from the USDA predicts a decline of almost 16% from 2022 to 2023 before adjustments for inflation. However, if net farm income hits that forecasted level of $136.9 billion, this level of income would actually be 26% above the 20-year average in inflation-adjusted dollars. Not last year’s numbers but not horrible! Drivers of the decrease in projected net farm income are expected declines of 4.3% in cash receipts from the sale of agricultural commodities. Crop receipts and animal/animal product receipts are both expected
to decline. Combine the lower receipts with projected increases in total production expenses and it seems “easy” to predict the drop in net farm income. The USDA expects our dairy and hog customers to see the largest decline in net cash income from 2022 to 2023. However, our members are used to market volatility, and so is GreenStone. I am very confident that 2023 will be a successful year for our members and your Farm Credit association.
One of the reasons I am so confident in GreenStone’s ability to have another strong year is our 600+ teammates that are working hard every day to put our Customers First. I was recently reminded of the depth of talent GreenStone has in its workforce. On February 24th, I was able to attend and briefly speak at our Circle of Excellence banquet for our top performing sales team members and support staff. What continued to hit home during the evening was how talented our teammates are and how deep our bench is. Many of our award winners had been recently promoted into new positions as other teammates retired or moved up within our organization. Here are just a few examples of some of these internal promotions:
• Ian McGonigal was promoted to Executive VP and Chief Sales and Marketing Officer
• Melissa Humphrey replaced Ian as Senior VP of Regional Sales
• Matt Alt replaced Melissa as the Regional VP of Sales & Customer Relations in western Michigan.
We also recently had three VPs of Agribusiness Lending retire with a combined 99 years of Farm Credit experience! They were replaced by three experienced members from our lending team: Michelle Backhaus, Mitchell Schafer, and Nathan Buning.
Again, these are just a few examples of how GreenStone is able to have a “next person up” mentality when we have retirements and transitions. We concentrate on our customer hand-offs from one lender to another to avoid bad fumbles. The ability of GreenStone to promote from within is a tremendous benefit to our organization and our teammates but at the same time we must ensure our customers are not negatively impacted. We work hard every day to make sure that is the case.
By this time, you have received your 2022 annual report. 2022 was an outstanding year for your association. The following key results give a quick summary of the success:
offices in northeast Wisconsin to celebrate Patronage Day. Meeting customers and spending time with my teammates are the best parts of my job and there is no better day to do that than Patronage Day. Our members and our staff really enjoy getting caught up from a business and personal standpoint while enjoying a snack or meal and handing out and receiving checks. There is no better way of celebrating how #PartnershipPays!
Around the same time as GreenStone was celebrating our cooperative’s success with members on Patronage Day were the recent commercial banking failures. As noted above, GreenStone along with the entire Farm Credit System remain financially strong, well capitalized and prepared to support our customers. Farm Credit institutions such as GreenStone do not take deposits and are not impacted by the Federal Deposit Insurance Corporation. We are closely regulated by the Farm Credit Administration, a federal financial regulatory agency, which does not regulate the commercial banks. Our financial strength and mission help ensure our members have a stable, competitive source of financing in good times and bad – regardless of the disruptions in commercial banking – and they can be confident in the cooperative structure and strength of their financial partnership with GreenStone!
Please feel free to reach out to me any time if I can ever be of assistance.
Thank you again for your membership and business!
Once again, our marketing team and our finance team did an outstanding job preparing the Annual Report. Our marketing team has received numerous awards over the years for our annual reports and this year’s was also very well done.
On March 16th our members received their share of this year’s record $120 million of Patronage – about 40% of our 2022 earnings, which represent approximately a 1.25% reduction in the interest rate for the average GreenStone member on their borrowings in 2022. I was able to spend time at a couple of our
Travis Jones 517-318-4144 travis.jones@greenstonefcs.comGreenStone along with the entire Farm Credit System remain financially strong, well capitalized and prepared to support our customers.
“
If you’re traveling down the backroads of southern Westphalia, Michigan, you’ll come across K&K Dairy Farms.
There are barns of cows and equipment, rows upon rows of crops including corn, soybeans, wheat and alfalfa, and the farmhouse where Kristi and Matt Keilen are raising their three small children. They have been at the head of this operation for almost ten years.
After working with GreenStone to purchase the farm from Matt’s father in 2014, Kristi and Matt became the fourth generation to own and operate the farm. Although it’s the farm Matt grew up on, Kristi’s involvement in agriculture started a lot later in life. She doesn’t come from a strong agriculture background, but raising rabbits and chickens for 4-H as a child sparked her interest. That interest turned into a career when she decided to study animal science at Michigan State University. Now, she’s farming full-time with her husband taking care of cows and crops – and she wouldn’t have it any other way.
Before Kristi and Matt were handed the keys to K&K Dairy Farms, they had to secure the funding they needed to take over the land. They met with GreenStone Financial Services Officer Collin Nurenberg. Since they are young and beginning farmers, Collin was able to use some of GreenStone’s CultivateGrowth resources like Farm Service Agency guarantees to offer them approval for the financing they needed.
“It is great working with Kristi,” said Collin. “She’s very organized and has her numbers in line. She knows her goals and it makes our job a lot easier. She knows what she wants and asks our opinion and it truly is a good partnership.”
Starting the farm came with some learning curves, though. Kristi studied agriculture and Matt grew up on a farm, so it wasn’t the dairy and beef operation or planting the seeds that proved tough – it was things like crunching the numbers and taking care of taxes.
“One of the things I didn’t realize is the business end of it,” said Kristi. “We’re really good farmers and know farming, but the business side of things has been difficult. I’m not an accountant, but now I do accounting. That’s something we had to learn.”
Along the way, Kristi said they started doing things a little differently than the people around them, and it helped their farm become stronger.
“We’re not afraid to think outside the box which is super important,” said Kristi. “It seems a lot of people like to be cookie cutter, but we’re not afraid to kind of do our own thing even if it’s not what our neighbor is doing.”
We’re not afraid to think outside the box which is super important... It seems a lot of people like to be cookie cutter, but we’re not afraid to kind of do our own thing even if it’s not what our neighbor is doing.
“
And thinking outside of the box is exactly what they did. When Kristi and Matt bought the farm, it was a large dairy operation. The barns were filled with 450 cows, being milked conventional-parlor style three times a day, and the farm employed fifteen people to keep up with that demand. After taking a look at what direction they wanted to go in, they decided to make a change and scale back the dairy operation.
Now, they house 250 dairy cattle and have two employees. They also worked with GreenStone to finance robotic milkers so they are able to focus on other areas of their farm like their beef cattle and cash crops.
Even when this vision seemed like a reach, GreenStone was there to help it become a reality.
“Collin was great about getting all of the resources together and helping us through the tough decisions and conversations and making sure we had everything thought through before we went forward with everything,” said Kristi.
“He helped every little step of the way, helping with the FSA side of things. He was really looking out for us and our operation. He knew our goal, too, which was really important.”
Supporting Neighbors in Agriculture
Now that the two have made these big changes on their farm, they don’t foresee any other big changes in the near future, but she is starting to look forward to what’s next for the farm.
“It is time to start thinking about what the next generation is going to look like and how to get my kids involved,” said Kristi.
In the meantime, she hopes to help and encourage other young people in agriculture by sharing her story.
In March, Kristi shared her expertise at GreenStone’s inaugural CultivateGrowth conference. She sat on a panel outlining some of the successes and obstacles she faced as a beginning farmer.
“She’s very active in the agriculture community which is cool to see,” said Collin. “She’s always networking and is very active in that aspect.”
Kristi wants others starting out to know that although it’s not always easy, it’s more than worth it when you see your farm succeed.
“One of the biggest things we have learned is to not give up. Keep pushing forward. There are always going to be good times and bad times but keep pushing forward,” she advised.
And Collin is sure glad that Kristi and Matt continue to do just that.
“The best part of my job is working with the people and helping them. I love seeing what their goal is and where they want to be five years down the road and helping them achieve those goals, especially the younger people. They’re the future. They are whom we are going to grow with,” Collin concluded. ■
GreenStone publishes regular updates on our Open Fields blog. Check out some of the posts you may have missed at www.greenstonefcs.com/openfieldsblog.
Inflation, rising interest rates and general economic uncertainty will continue to impact consumer purchasing decisions as many look to limit spending.
In Michigan, these industries support over 90,000 jobs, $5.5 billion in labor income, $8.3 billion in valueadded and about $22 billion in total output.
The economy has been nothing short of a rollercoaster over the past few years. Going into 2023, you can expect more ups and downs.
Rather than learning these lessons the hard way, a group of nine beginning farmers jumped at the chance to gain experience-based knowledge quickly through GreenStone’s CultivateGrowth Mentorship. ■
For new farmers, navigating the nuances of starting a business from the ground up is challenging enoughespecially when it comes to managing the financials and filing taxes correctly. For Ashley and Jordan Stair, proud owners of the newly established Timber Valley Bison, managing their business’ tax returns were made simple with the help of GreenStone’s CultivateGrowth Grant.
As a qualifying beginning farmer, Ashley turned to the grant to use for her first-time use of GreenStone’s tax and accounting services to help offset the cost. This allowed the Stair family to get the expert help necessary from GreenStone’s team of agriculture tax accountants. They worked with a local accountant who answered their questions and simplified the tax process so Ashley and Jordan could file their taxes correctly for both the current year and years to come.
New farmers, like Ashley and Jordan, are
extremely important to agriculture’s vibrant future and GreenStone strives to support them in their new journey! GreenStone’s CultivateGrowth Grant provides up to $40,000 to help offset the cost of these services and educational programming for young, beginning and small farmers. GreenStone customers are eligible for up to $1,000. Non-customers are eligible for up to $500.
Visit greenstonefcs.com/grants to learn more and apply for a grant today! ■
The opportunity to learn alongside an experienced professional in your field can make a monumental difference in the path you take toward reaching your goals - it could even put you on a fast track to success. Like in many industries, one way to gain this valuable experience and knowledge can be through a mentor sharing their stories of success and lessons learned. Created with this in mind, GreenStone’s CultivateGrowth Mentorship program provides a way for industry leaders to share their lifetime of these lessons and expertise with young, beginning, and small farmers. The current 20222024 mentorship class is underway and both mentors and mentees have already benefited.
Making decisions as a young, beginning or small farmer can be intimidating if you aren’t armed with the correct knowledge. In addition to the grants and mentorship opportunities offered through GreenStone’s CultivateGrowth program, the online course below could be a valuable asset to your ongoing learning:
Mikayla Bowen, an animal science major at Michigan State University, is currently participating in the program as a mentee in hopes of learning alongside someone who is well-established in the industry. After transitioning to online courses during the COVID-19 pandemic, she started a goat operation in 2020. With this new endeavor, Mikayla turned to GreenStone’s mentorship program to learn the steps needed to expand and operate her business, and to create business plans that help organize her goals and manage finances. She was paired with mentor Tony Boughton, who conveniently works at Michigan State University managing the Farm Service Center and owns and operates a 700-acre farm where he grows corn,
soybeans, and hay. He also raises lambs and goats to sell to the Eastern Market. Tony’s years of farming, industry knowledge and vast connections through both the university and his operation are already coming in handy for Mikayla.
As for the next couple of months, Tony and Mikayla will continue to meet and will soon visit each other’s farms – something that is highly encouraged in the CultivateGrowth mentorship. The next class of mentees and mentors will kick off Fall 2024 but interested future participants can apply online now. Visit greenstonefcs. com/mentorship to learn more!
Read the full article at: greenstonefcs.com/ openfieldsblog ■
Farm Pulse: Financial Management and Analysis. Offered by University of Wisconsin- Madison, this self-paced online course educates farmers on the important financial documents they need to understand and keep in mind when making business decisions. This course will help farmers evaluate their finances, take the pulse of their farm business, and set goals for the future of their operation.
Interested in learning more? Visit farms.extension. wisc.edu/programs/farmpulse/ ■
By Alan Hahn Environmental Scientist at Dragun Corporation Environmental Advisors
This issue caught the attention of the National Agricultural Law Center – they have expressed concern about the potential impact on future water discharge permits from farms, specifically as it relates to Total Maximum Daily Load.
The second announcement relates to a proposed study of effluent discharges from concentrated animal feeding operations (Effluent Program Plan, Plan 15). This potential study (funding dependent) is the result of a 2021 lawsuit brought by Food and Water Watch (“Petition to Revise the Clean Water Act Regulations for Concentrated Animal Feeding Operations,” submitted March 8, 2017). This could bring more regulatory scrutiny to livestock agriculture operations.
Everyone in agriculture should keep an eye on these regulatory developments.
The environmental regulation that is currently on the minds of most is the recently-announced (December 2022) new definition of waters of the United States, or WOTUS. This is an important issue for anyone that develops or uses land for their livelihood – especially those involved in farming.
We have written in the past for GreenStone’s Partners magazine about the never-quite-settled definition of regulated waters (under the Clean Water Act). In our 2020 update, we discussed what was then referred to as the Navigable Waters Protection Rule - NWPR (under the previous administration in Washington D.C.). The then-new definition of regulated waters was by all accounts simpler to understand/implement and viewed favorably by the regulated community. Environmental groups, on the other hand, believed the NWPR was too lenient.
When President Biden took office, he made it clear that his administration would repeal the NWPR and (again) redefine regulated waters.
On December 30, 2022, the new WOTUS rule was released. The regulated community, including farming groups, have been critical of the new rule.
One of the main concerns is that the final rule will leave many decisions regarding regulated waters to case-by-case determinations. This, in many situations, does not allow a potentially-regulated entity to determine with any certainty whether the regulation applies to activity on their property. Accordingly, they might move forward with activity such as tiling a field, expanding a farm field, constructing a drainage ditch, building a home, etc…only to be told later that they were in violation, resulting in fines and penalties as well as interruptions or cancellation of projects. Additionally, obtaining determinations by regulators prior to conducting what is, in many instances, routine farming needs will only result in delays – in some cases for years.
We won’t get in the weeds on the new WOTUS rule because the ink was barely dry on the latest definition when two lawsuits were filed seeking to overturn the rule.
The new WOTUS rule has already had one set back. On March 19, 2023, the US District Court for the Southern District of Texas enjoined the WOTUS rule in Texas and Idaho (the ruling does not affect other states). In ruling on the case, the Judge stated that there is a “substantial likelihood” that the 2023 Rule exceeds the Agencies statutory authority under the Act.
A coalition of 24 states, led by West Virginia, has filed a lawsuit in North Dakota. The states are requesting a federal court to vacate the new WOTUS rule and declare it unlawful.
Adding a complication to the new WOTUS rule is the pending decision by the Supreme Court of the United States (Sackett v. EPA) on a question of Clean Water Act jurisdiction. At issue is a residential development on a half-acre of land in Idaho. The plaintiffs, Chantell and Michael Sackett, have been waiting for this matter to be resolved since their development was halted in the spring of 2007. Several groups urged the Biden Administration to withhold the final WOTUS rule until the Supreme Court ruled on the Sackett Case, which some court watchers believe will be ruled in favor of the Sacketts and limit the EPA’s jurisdictional authority over regulated waters.
Oral arguments were heard on October 3, 2022. Expect a court decision on the case this spring or early summer.
So have we heard the last on the WOTUS issue? Not likely.
Over the past couple of years, environmental regulatory issues are being brought forward with increased frequency. As outlined above, many of these regulations have the potential to affect agriculture – so pay careful attention as these (and other) issues move toward implementation or are modified. ■
Alan Hahn has an undergraduate degree in Environmental Studies and completed a graduate program in Environmental Management. He has worked in environmental management for 45 years. He has written hundreds of blogs and articles. In addition to GreenStone Partners, his published work includes Progressive Dairy, Manure Manager, Michigan Lawyers Weekly, Detroiter, Michigan Forward, and HazMat Magazine.
The opinions stated herein are not necessarily those of GreenStone Farm Credit Services
Everyone in agriculture should keep an eye on these regulatory developments.
Environmental regulatory issues with the potential to affect agriculture have been developing quickly. In January 2023 alone, there were two announcements that were of interest. The first is the Cumulative Impacts Addendum (to Environmental Justice).
Real GDP growth ended 2022 with 2.9% growth in the fourth quarter. However, the quarter ended with data pointing to a clear weakening in growth. Notably, consumer spending declined in both November and December, forming a trend indicating that consumer spending could stagnate in the first half of 2023. Despite slight improvements in housing market dynamics in recent weeks, a continued slide in building permits indicates that residential investment will likely remain a significant drag on economic growth.
There have also been several positive developments recently that boost the odds that the U.S. economy could avoid a recession. For one, the labor market remains firm as the unemployment rate fell to 3.4% in January, a rate that has not been experienced since 1969. Furthermore, January’s jobs report was delivered with positive revisions to past data that raised the average level of employment over the past few periods and showed a stronger pace of hiring in the final months of 2022. Bearing all this in mind, market participants now expect smaller declines in employment this year than previously assumed.
The U.S. economy looks to be in the process of rebalancing after experiencing significant volatility over the past few years.
The labor market is holding up while inflation appears to be receding at a pace a bit faster than anticipated. The Consumer Price Index declined in December for the first time since early 2020, and the annualized run rate over the previous three months averaged just 1.8%. Lower inflation is mainly attributable to falling energy and goods prices. Services price increases have yet to cool, but there are signs that wage growth, which is an underlying driver of prices in the labor-intensive service sector, is beginning to moderate. The Employment Cost Index rose 1.0% in the final quarter of 2022, a slower gain than expected and the third consecutive quarterly moderation. Wage growth is still running at a pace inconsistent with 2% inflation, however, long-term inflation. The recent cooling in wage pressures without a material downgrade in labor market conditions is an encouraging sign that tighter monetary policy is having the desired impact of cooling inflation without broadly damaging economic activity. Another reason for cautious optimism is that the combination of easing inflation
and solid income growth appears to be enhancing consumer purchasing power. Real disposable income growth has been flat or positive in every month since July. After declining steadily for most of 2022, the saving rate ticked up in November and December. The lagged effects of higher interest rates may lead real disposable personal income to backtrack around the middle of the year. But diminished price
pressures and strong employment growth lessen the risk consumer spending halts completely.
The U.S. agricultural economy posted new record highs for net farm income in each of the past two years. However, farmers will face challenges in 2023 in the form of higher operating costs, higher interest
Another reason for cautious optimism is that the combination of easing inflation and solid income growth appears to be enhancing consumer purchasing power.
rates, a strong dollar, and potentially weaker domestic and export demand for agricultural products. Other potential variables such as the course of the ongoing drought and increasing political tensions with our largest agricultural export market, China, will also factor into the health of the agricultural economy.
The National Weather Service’s Climate Prediction Center is currently expecting drought conditions to improve in the Midwest, the outlook for the West and the South is less favorable. Our evolving political relationship with China will continue to have a meaningful impact on the agricultural economy given that China has made it clear that it would like to minimize its dependence on imports of U.S. farm products. China’s recent decision to allow several major international traders to ship corn from Brazil, the largest competitor of the U.S. for grain and oilseed exports. Offsetting China’s desire to decrease its reliance on U.S. agricultural products is that global grain and oilseed supplies are exceedingly tight. The combined global ending stocks of corn, wheat, and soybeans are forecast to decline for the fifth straight year in 2023. For the 2023 harvest, the futures market is
currently offering strong prices, but when accounting for increases in production costs, profitability is expected to be near breakeven.
While still being at above average levels, wholesale fertilizer prices and natural gas prices have declined since last fall. Although many had expected both prices to rise in late 2022 and early 2023 due to lower gas imports from Russia, European countries have built natural gas reserves through conservation efforts, the warmest winter there in a decade, and the delivery of record U.S. natural gas exports. Fertilizer production is dependent on natural gas as a feedstock, an energy source, or both depending on product type. As a result, a decline in natural gas prices causes the cost of fertilizer production to decrease, most notably for nitrogen. From peak-to-trough over the past several months, U.S. natural gas prices have declined by 67%, compared to price drops of 24% for anhydrous ammonia, 16% for phosphate and 18% for potash. If this recent decline in natural gas prices lasts through spring, fertilizer prices would be expected to remain lower than recent highs.
Despite historically strong milk prices in 2022 the domestic dairy cow herd has not grown a meaningful amount as herd growth has been impaired due to several factors including high costs for feed, construction materials, and replacement heifers, as well as tight labor availability, and the ongoing drought in the West. Domestic demand for U.S. dairy products remains firm, however demand is expected to cool in 2023 due to inflationary pressures on consumer spending. Softening demand is expected to result in lower milk prices, but wholesale and retail dairy product prices have remained mostly resilient so far. Ongoing structural changes within the dairy processing industry will likely persist in 2023 with the continual expansion of cheese processing capacity expected to divert milk away from butter churns, providing ample cheese supplies while keeping butter inventories tight. This trend would suggest that Class IV milk prices will likely maintain a premium to Class III milk in 2023.
Most U.S. animal protein industry segments have posted very strong financial performance over the past three years. However, the levels of profitability experienced in recent years will likely come to an end in 2023. On the demand side, consumers are making efforts to reduce spending in response to higher inflation and higher interest rates. Retail grocery sales of animal protein products continue to rise, but not as fast as inflation, meaning that sales volumes have begun to decline in recent months. After reaching a projected record high of more than 226 pounds per capita in 2022, U.S. meat and poultry consumption is expected to flat or slightly lower 2023, with marginal gains in chicken and pork offsetting a decline in beef.
Following eight years of growth, red meat production is projected to decline by up 2 billion pounds in 2023 because of shrinking cattle supplies. The decline reflects an estimated 5% annual reduction in total beef cow inventory and comes at a time when beef still has strong consumer demand. As a result, prices may remain historically strong, in both live cattle and beef markets. While pork production is expected to have a moderate rebound in 2023, the breeding herd below its peak in 2020. The domestic pork supply has benefitted from a reduction in exports and an increase in imports. ■
While farm practices may vary and management may change over the years, there is something comforting about farming the same piece of land that your ancestors once did decades before.
Celebrating the time, commitment to the land and the individuals who paved the path for today is exactly what the Michigan Centennial Farms Program stands for.
The Michigan Centennial Farms Program, a component of the Historical Society of Michigan, appreciates farms owned by the same family for 100 years or more. The contributions of the farms along with the loyalty to the land expressed by the family should be celebrated — and that’s just what the program does. Since the program began in 1948, it has celebrated thousands of centennial farms and the families behind the achievement.
You may have driven by a centennial farm without realizing it. One way to identify a centennial farm is to look for the iconic marker: a green sign with yellow text featuring a wolverine toward the top. Why a wolverine? These creatures symbolize persistence, determination and endurancelikely characteristics that each 100-year-old farm and their families are familiar with.
“Michigan farms are crucial to our economy and deeply ingrained in our culture and sense of place,” said Larry J. Wagenaar, executive director of the Historical Society of Michigan, which oversees the program. “The Centennial Farm
Program is an outstanding opportunity for us to recognize farms and farm families that have stood the test of time.”
Have a centennial farm?
Get it recognized!
To qualify, the property must be located in Michigan and be a working farm of ten or more acres that has been continuously owned by the same family for at least 100
years. While the current families don’t need to have the same last name as the founders, they must still be related. Interested families that may qualify can submit an application online along with photographs, a tax bill, a site plan, and deeds establishing your family’s continuous chain of ownership. The application takes approximately two weeks to process. If approved, the sign
will take four to six weeks to arrive.
GreenStone is proud to partner with the Michigan Centennial Farms Program and celebrate the dedication shown by families over many years. For more information, contact the Historical Society of Michigan at (800) 692-1828 or farms@ hsmichigan.org. You can also go to hsmichigan.org. ■
On March 16, thousands of GreenStone customers joined us at our 35 branches for Patronage Day! Enjoying things like food trucks, good conversation, and giveaways, these members were able to partake in a celebration while collecting their Patronage checks.
This year, GreenStone was able to return a record $120 million to our member-owners. That is more than 40% of GreenStone’s net earnings from 2022.
“Patronage Day celebrations are the perfect opportunity to connect with our customers and show them how much we appreciate their partnership with us,” said CEO Travis Jones. “Our customers work hard, and we are proud to give back a record amount of Patronage this year.”
This is the eighteenth year of Patronage, and since
the inaugural year, GreenStone has returned $840 million in cash dividends.
“As always, it’s an exciting time for GreenStone when we are able to give these earnings back to our customers,” Travis shares. “Our customers are our owners and we take every opportunity to celebrate our partnership – and the benefits of the cooperative - with them.”
Take a look back at some of the Patronage Day celebrations below! ■
GreenStone sees strong financial growth for 2022 GreenStone released its 2022 annual report in March under the theme “Move Forward.” It details strong financial growth and a record-level return to customers through dividends.
The report goes beyond the solid financials to share stories of a young and beginning farmer working with GreenStone to acquire land on a farm he has worked on for years, along with a recentlyretired couple expanding their rural roots for a new chapter in their lives. As our customers move forward, GreenStone is in-step, leading the way with a new internal technology system we rolled out in the fall to help our employees deliver services and solutions to our customers more effectively. You can read about that new technology in this year’s annual report.
Key financial highlights in this year’s report include:
• Net Income: $284.6 million
• Total Assets: $13.2 billion
• Total Loan Growth: 10 percent
• Patronage Paid: $120 million
Scan this QR code to read the full report! ■
The time is near when GreenStone members select the individuals to help guide the cooperative into the future. Starting May 8, ballots will be sent to GreenStone voting stockholders for your opportunity to vote!
In 2023, members will be electing two members each for voting regions 6 and 7 who will serve a four-year term on GreenStone’s Board of Directors. Along with the four directors, all regions will be selecting the nominating committee responsible for curating the candidates for next year’s elections.
To simplify the voting process, members will have the option of submitting the ballot online or by postal mail. Each member will be mailed their ballot, however ballots will also be sent by email to those members who have provided their email address. Members can choose the voting response method most convenient for them!
Voting instructions will be printed on each ballot for online or mail in voting. Nominees have been selected for all positions. Director candidate biographies will be included with the ballots for voting members in regions 6 and 7. Director biographies can also be viewed when voting online or by visiting GreenStone’s website. Nominating committee biographies
Region 7
are not provided in coordination with Farm Credit’s election regulations, however, details are included to identify the county in which they are headquartered and their major agriculture product, as diverse representation of our cooperative is important and desired.
All ballots must be received by midnight on June 13, 2023. For more information about the election and the cooperative’s governance, go to our website www. greenstonefcs.com/elections to meet the candidates. If you are interested in being considered for a director or nominating committee position in the future, please visit www. greenstonefcs.com/governance and complete a profile form to express your interest or call 800-444-3276 and ask to speak to the Executive Assistant to the CEO. Voting regions 1 and 2 will have open director seats in 2024.
One of the many benefits of belonging to a cooperative like GreenStone is the opportunity to have an influence on the leadership of the association. Please take part and share your voice through your vote! ■
Congratulations to Emily Kropf, associate crop insurance specialist at GreenStone, who was recently selected by US Apple as a 2023 NextGen Apple Fellow. She will join five others from across the country to take part in the emerging leader program. Great job Emily!
Travis Jones, GreenStone’s CEO, was recognized with an Honorary State FFA Degree by the Michigan FFA at their annual state convention. He was selected for his service as a member of the Michigan FFA Association Board of Directors. Congratulations Travis!
Help GreenStone congratulate and thank these staff who are celebrating an employment milestone. From five to 40, the years represent the dedication and service all employees provide our members.
Region 5
Region 1
Region 6
Region 4
Region 2
Region 3
In this behind the scenes, two GreenStone employees share how their role allows them to support rural communities and agriculture.
Collin Nurenberg Financial Services Officer
Ionia, MI
5 Years of service
Describe how your role carries out the GreenStone mission of supporting rural communities and agriculture.
As a financial service officer, my role allows me to help provide products and services that allow our customers to succeed in both their operational and family goals.
What do you enjoy about your role?
The thing I enjoy the most about my role is the people I get to work with every day, both customers and coworkers.
What changes have been incorporated in your role to meet evolving customer needs?
A lot has changed over the past few years, but the biggest changes are probably the technology and increased flexibility. Both have allowed
GreenStone to serve our customers better and in a more timely fashion.
What do you enjoy doing in your free time?
Spending time with family and friends, as well as working on our family farm.
Joel Norkus Vice President of Lending Grand Rapids, MI5 Years of service
Describe how your role carries out the GreenStone mission of supporting rural communities and agriculture:
Most clients that I help fall into one of 2 categories. The first category is clients who are looking to purchase a specialized property (such as agricultural or recreational land), and they have been told that financing is unavailable by their residential lender.
A big part of this group are clients who’s dream it is to build their own house in the country for their families and
future generations to enjoy. The second category is current GreenStone customers who know and trust us for all of their financing needs. We are usually their first call if they ever need anything. Both types of clients are focused on preserving the agricultural and outdoor recreational culture in Michigan.
What do you enjoy about your role?
I really don’t know where to start! I’ve never been a part of an organization with such a loyal customer base. However, given GreenStone’s company culture, I am certainly not surprised. Our company research and surveys consistently show the highest levels of employee satisfaction, and this absolutely filters through to our clients. GreenStone has the best team that I’ve ever worked with. My time here has given me a real appreciation for Michigan agriculture and the outdoors. In our current environment of consistently being surrounded by technology, it is extremely satisfying to assist clients with achieving their goals to be able to acquire an asset that allows them to ‘disconnect’, and enjoy time with their families in the
beautiful outdoors. Almost every client expresses their wish to keep these properties in their family to be used for future generations, and this makes me truly appreciate the services I provide for them.
As I mentioned, many of my new clients are referred to me by other real estate professionals (realtors and lenders), and I’ve been fortunate enough to have created a local network that refers these clients directly to me when the situation arises. Instead of competing for business with other lenders, I find that they will refer clients to me when they know a GreenStone loan is a better fit. What changes have been incorporated in your role to meet evolving customer needs?
A good number of my clients who are purchasing land now express a desire to build a home in the future. In these cases, I do my best to describe how construction loans work and what a construction loan might look like for them, even if the build won’t happen for years. Clients appreciate the education and helps them set personal financial goals in order to get to that point.
What do you enjoy doing in your free time? ?
Mainly, I love spending time with my family (Wife Amy, daughter Lilli, and son Jonah). As far as hobbies go, I have to admit that my main outdoor hobby consists of spending time on many of Michigan’s golf courses. In my spare time, I play guitar and have put together a pretty decent collection of guitars and amps. This year, I’ve even connected with an old high school friend to start a band. However, I don’t think I’ll be quitting my day job anytime soon! ■
GreenStone employees take pride in providing members with guidance and the best service possible. Each year the sales staff who were among the top performers within the cooperative, along with the critical support team who work with them, are recognized in the Circle of Excellence Rewards and Recognition Program. This is just one way GreenStone acknowledges these dedicated individuals and their hard working support teams. The following outlines the top GreenStone staff and teams recognized as the 2022 Circle of Excellence award winners:
Platinum Award Winners
Agricultural Financial Services Officers:
Cameron Rowe, Escanaba
Nathan Buning, Cadillac
Matthew Willbrandt, Schoolcraft
Travis Bratschi, Traverse City
Kim Knoerr, Bay City
Jennifer Whitford, Alma
Country Living Financial Services Officers:
James Cole, Howell
Ashlee Guerrero, Ann Arbor
Devon Feldpausch, Hart
Commercial Lending:
Dan Kaufman, Dairy Team
Sales Leadership:
Benjamin Spitzley, Agribusiness Lending Group
Gold Award Winners
Agricultural Financial Services Officers:
Jeffrey Ginter, Berrien Springs
Mitchell Schafer, Grand Rapids
Matt Alt, Grand Rapids
Johnathon Thompson, Bay City
Derek Tahaney, Allegan
Shaun Gainforth, Caro
Country Living Financial Services Officers:
Joel Norkus, Grand Rapids
Brian Young, Monroe
Cameron Bongard, Ionia
Commercial Lending:
Brent Spencer, Dairy Team
Sales Leadership:
Jim Nowak, Mid-East Region
Crop Insurance Specialists:
Ryan Kratochvil, North Region
Phillip Preston, West Region
Jane Blaske, Southwest Region
Tax and Accounting
Elizabeth Waldschmidt, Southwest Region
Stacey Mason, North Region
Achievement Award
Mark Klett, Corunna ■
GreenStone Farm Credit Services recently received two National Agri-Marketing Association (NAMA) awards at the Regional Best of NAMA Awards Ceremony.
GreenStone was presented an award for its 2021 Annual Report in the category “Company Publications.” The report was published in March 2022 and followed an “Innovation” theme to highlight the tenacity of our customers following the hardship of the COVID-19 pandemic.
GreenStone also took home an award for its video from last year’s Patronage Day in the category “Audio/Video Feature or Testimonial.” In the video, then-CEO Dave Armstrong read and answered customers’ commonly asked questions about Patronage Day in a creative and humorous way.
“This is a well-deserved win for our marketing and public relations team,” said Travis Jones, President and CEO of GreenStone. “We are honored to have our annual report and this video recognized with a regional award. Our team works hard each day to tell the GreenStone story and illustrate why our services are a cut above the rest.” ■
In early March, 75 young, beginning, and small farmers gathered in Lansing, Michigan for the inaugural CultivateGrowth Conference hosted by GreenStone.
This conference is part of GreenStone’s CultivateGrowth program that offers flexible financing options for young, beginning, and small farmers, along with resources to help them grow their operations.
Participants arrived at the conference center on Monday afternoon and were given the opportunity to mingle and meet with other young, beginning and small farmers – something that Tucker Mays, a cash crop farmer in Dansville, Michigan enjoyed most.
“It was kind of cool being around a group of young farmers,” said Tucker. “It was fun to see what other people thought about different situations and what different people were doing on their operations. I really liked the time that we could talk in small groups and have conversations.”
Rachel Harmann, a beef cattle farmer in Algoma, Wisconsin, echoed that sentiment.
“It was nice to be able to connect with young, beginning, and smaller farmers and have the opportunities to learn more about topics that interest you,” she said.
Comments like that are music to the ears of Ann Allen, a Regional VP of Sales and Customer Service for GreenStone. Ann serves as one of the leaders for GreenStone’s CultivateGrowth committee, and played a major role in planning the conference. She said it was important for these farmers to have time to connect with one another.
“When we were planning the conference, we kept our customers in mind. We wanted the topics to be relevant and time well spent away from the farm. The networking time was a key session because they were able to make connections and share their story,” said Ann.
Once this group of farmers mingled and made some new friends, they were able to enjoy a welcome ceremony over dinner followed by the first keynote speaker: Greg Peterson of the Peterson Brothers. Greg and his brothers post entertaining videos online educating the world about agriculture and life on the farm.
The following day, the group of farmers learned about risk protection for their farm from one of GreenStone’s Senior Crop Insurance Specialists, along with financing and cash management skills from GreenStone’s tax and accounting experts and financial services officers. “I think they did a good job showing what kind of resources are out there, including working with the FSA,” said Tucker.
“The most important piece was to make sure that this next generation knows that they have an entire team on their side and that they are not going at this alone,” said Ann. “We have loan
officers at GreenStone to assist with financing options, and we can partner our farmers with tax and accounting specialists and crop insurance specialists who are able to provide additional products and services.”
The conference also featured a panel of young, beginning, and small farmer peers who shared their insight, and the obstacles, they have endured in their journeys.
“I really liked the panel that you all had selected and some of the situations they had discussed,” said Tucker. “They all had a different story to tell.”
Rachel Harmann especially enjoyed the presentation on legislative outreach by GreenStone’s VP of Loan Administration and Legislative Affairs, Becky Taylor. The presentation outlined upcoming legislation that could impact the agriculture community and how each of us can get involved.
“I really enjoy hearing about the legislative side of things,” said Rachel. “It’s so important because it really impacts our farms.”
Farmers were also able to learn about personal branding and advertising from keynote speaker Dr. Marissa Hake, a popular veterinarian, who is known on social media as the "Calf Vet," and posts educational material related to the agriculture and dairy industry.
The conference was able to meet its core goal: To bring young, beginning, and small farmers of all backgrounds together under one roof to connect, share ideas, and learn about the resources that GreenStone has to offer.
“GreenStone’s inaugural CultivateGrowth conference was marked as a success based on positive feedback and comments from those who attended, and we hope to use this feedback to help shape and elevate future programming,” said Ann. ■
APRIL
GreenStone Annual Meeting Corporate Office, East Lansing, MI
MAY
GreenStone Election Ballots Mailed to members
GreenStone Offices Closed for Memorial Day
6
JUNE Small Town & Rural Development (6-8) Crystal Mountain, Thompsonville, MI
Wisconsin State FFA Convention (10-15) Alliant Energy Center Madison, Wisconsin
GreenStone Election Ballot Deadline
Voting polls close at midnight
Michigan 4-H Exploration Days (21-23) MSU, East Lansing, M
JULY
GreenStone Offices Closed for Independence Day
Michigan Livestock Expo (13-15 & 19) MSU, East Lansing, MI
Michigan Dairy Expo & Michigan 4-H Youth Dairy Days (17-21) MSU, East Lansing, MI
Wisconsin Farm Tech Days (18-20) Loyal, WI
“I think they did a good job showing what kind of resources are out there, including working with the FSA.
Directors’ Perspective:
Like
During this time, the GreenStone Board of Directors are not only attending their commodity and industry specific meetings, but they are also representing GreenStone’s 28,000 members at the annual Farm Credit meetings. Two of those are the Farm Credit Annual Meeting with all 60+ Farm Credit associations from across the nation, and the AgriBank Annual Meeting with the 12 associations that are members of AgriBank’s district within the Farm Credit System. Three of your GreenStone Directors’ share their perspective on these two gatherings, and provide insight into the purpose and the value the gatherings provide to GreenStone.
Terri Hawbaker, Clinton County, MI Farm Credit System meetings are key in cultivating collaboration among the entire cooperative system and encourages exploration of issues facing our industry. The Farm Credit Annual Meeting allows the pooling of resources to provide educational opportunities and updates on the farm economy, legislative issues, and future challenges through experts that each individual association may not be able to secure on their own. It also creates a space to share ideas and thoughts from across the nation in one room, enlightening and challenging every participant’s viewpoint. The AgriBank Annual Meeting is where the voice of each association who uses AgriBank as their funding bank can be heard through the election of the AgriBank board members, and where director-to-director discussions are prominent. The AgriBank meeting allows for issues to be discussed that are region specific, whereas the national meetings allow us to join together and create one voice to present to leadership in Washington D.C. on policy that benefits all members, including the Farm Credit System itself.
The education gained at these gatherings gives us, as directors, a broader insight to the future of agriculture and can impact the future path of GreenStone to keep your cooperative healthy and relevant.
many of our farm members experience, winter is simultaneous with meeting season – taking advantage of some down time on the farm to connect with others, learn, and gain inspiration for the next cycle of feeding and fueling America.
The education gained at these gatherings gives us, as directors, a broader insight to the future of agriculture...
Each year board members have the opportunity to attend several meetings besides our regular board meetings. This year, several of us attended the Farm Credit Annual Meeting. This meeting includes directors and management from the associations across the country and the four District Banks. Presenters shared insight from topics such as geopolitical issues, international demographics, the Federal debt, regulation, commodity prices, and rising interest rates. Why does this matter? Because these all can have some impact on each and every one of our farms, and the businesses we depend on for supplies, feed, fuel, fertilizer, parts and the cost and availability of the capital. Although we have limited control on many of these, I feel it is important to try to minimize the negative threats and maximize any potential opportunities.
Most of our GreenStone Board of Directors were also able to attend the AgriBank Annual Meeting. Again, there were several excellent speakers with the highlight being keynote speaker, former President George W. Bush. He shared with us some of his thoughts on his time in the Oval Office as well as the current political environment. He even gave us a little advice for life in general!
We had the chance to network with others. There were many conversations about our own operations but a lot of time was spent sharing thoughts about potential risks, discussing the need for collaboration between associations and the funding banks, and the concern over the current interest rate increases. One common denominator that I feel came through is that whether talking to a staff member, a CEO, an association director, or a bank director we are all driven by a common goal: To do what will create the best outcome for our farm and rural consumer members.
The most important part of the AgriBank meeting however was to elect the directors to represent GreenStone and the other associations on the AgriBank Board. This is similar to the elections coming up for the GreenStone board. I believe one of the greatest assets of Farm Credit is our self-governance.
The recent AgriBank Annual Meeting was an incredible time to network with directors from other Farm Credit institutions
across the county. We were able to see firsthand how GreenStone performed in comparison to co-ops that are both much bigger and smaller than ours. It was great to see it confirmed that GreenStone consistently ranks in the very top of farm lending by every measure.
Thank you for your sponsorship of the Wisconsin FFA Foundation. Our organization is celebrating almost 40 years of support to Wisconsin FFA members, their chapters, and advisors. Agricultural education is strong in Wisconsin!
Abigail Quinlan, Executive DirectorWith your help, we raised a record $450,000 for Children’s Wisconsin in 2022! Because for generous sponsors like you, Dairy Cares has raised more than $2.3 million for Children’s Wisconsin over the last 12 years. Thank you!
—Deric P. DuQuaine, Dairy Cares of Wisconsin, Inc. TreasurerOne take away from this meeting was the time spent with our keynote speaker, former President George W. Bush. He shared with us that you never know what you can do until you try. At age 70 he took up painting and took his creativity in an entirely new direction. His story is inspiration for all of us at any age! ■
It was great to see it confirmed that GreenStone consistently ranks in the very top of farm lending by every measure.
I believe one of the greatest assets of Farm Credit is our selfgovernance.
Legislative Matters:
available in communities eligible to receive USDA-guaranteed water loans.
Promoting U.S. ag exports by increasing the amount of export financing the eligible System Banks are allowed to provide. We also continue to work on some additional proposals to:
Update and streamline FSA loan guarantee programs to make them more accessible to young, beginning, and small farmers and ranchers.
The Senate Agriculture, Nutrition, and Forestry Committee is charged with writing the Farm Bill. Michigan’s Senator Debbie Stabenow serves as Chairwoman of the Committee, which puts GreenStone and its members in a unique position to be heard with respect to what is important for Michigan agriculture and your financial cooperative.
As agriculture develops and produces a sound economic engine for our Michigan and Wisconsin agriculture and rural families, we all must work together to become more innovative and efficient in producing and delivering results. This is important for the farm and forest, as well as it is for your Farm Credit System cooperative to remain sustainable into the future. Toward that end, we also must strengthen our voices to assure legislative and policy leaders understand at every turn what is important to afford agriculture the opportunity to maintain its
economic value in service to others. Communicating in a manner that we can be heard for the 2023 Farm Bill has started, and the drum beat of our collective messaging needs to have a sustainable rhythm to be heard.
As the journey for the Farm Credit System priorities begins, you will find an outline of what is important to communicate to legislators and policy leaders for the 2023 Farm Bill to maintain our healthy GreenStone Farm Credit Services within the System well into the future.
The Farm Credit System encourages Congress to enact a Farm Bill that maintains a strong farm safety net for producers, including a strong federal crop insurance program.
Additionally, Farm Credit encourages Congress to support rural communities and agriculture by:
Boosting development of vital rural community facilities (hospitals, rural clinics, skilled
nursing facilities, etc.) by clarifying Farm Credit institutions’ authority to invest in rural community facilities projects and encouraging partnerships on these projects with community banks.
Expanding access for rural businesses to equity capital investment by eliminating unnecessary restrictions on Rural Business Investment Companies (RBIC) and allowing RBICs to access federal leverage funding, like how small business investment companies operate.
Supporting the U.S.-based commercial fishing industry by allowing some fishing- related businesses to borrow from Farm Credit, like how farm-related businesses borrow from Farm Credit.
Increasing the loan limits on Farm Service Agency direct and guaranteed loan programs to better reflect the increasing costs of purchasing land and operating farms and ranches.
Strengthening rural water systems by ensuring that System’s existing water lending activities are
Authorize Farm Credit institutions to collect demographic information from customers on a voluntary basis and ensure that the Farm Credit Administration is the primary regulator of Farm Credit System institutions. Reduce the cost of credit to U.S. farmers and ranchers by reducing the regulatory burden on Farm Credit System institutions while maintaining the financial safety and soundness necessary to provide credit in all economic cycles.
Improve the transparency and safety and soundness of the Federal Agricultural Mortgage Company (Farmer Mac) by requiring the company to obtain and maintain ratings on its debt securities.
We also continue to monitor and engage with other leading agriculture organizations and their recommendations to amplify and unify a strong agriculture voice in other key policy areas, including:
• Conservation, Risk Management and Credit
• Energy
• Food Waste
• Forestry
• Livestock and Dairy
• Research, Extension, and Innovation
These are the messages we will be carrying forward on behalf of our association until the 2023 Farm Bill is passed as led by our Michigan Senator Stabenow. ■
PAC Progress:
The 2023 MI GreenStone PAC contribution campaign was record setting with almost $40,000 being contributed by more than 480 Michigan GreenStone customers. This is another strong representation of the support members have for the MI GreenStone PAC. Your board of directors and management team are diligently evaluating legislative leaders and will be sharing the importance of rural communities, agriculture, and the Farm Credit System with elected officials.
The WI Farm Credit PAC Contribution Campaign received over $3,800 from Wisconsin GreenStone customers. The WI Farm Credit PAC funds will also be disbursed by your Directors and management team in coordination after an evaluation process.
The AgriBank District 2023 Farm Credit PAC drive competition brought in almost $22,000 in contributions and these funds are used to
support federally elected officials. A portion of the Farm Credit PAC funds will be allocated to the GreenStone territory and your Directors and management will assist in the delivery and communication of the Farm Credit message.
As the debate over policies critical to rural communities and agriculture heats up, we are well positioned to carry the messages of Farm Credit and our customers. In fact, the work has already begun with participation in Farm Bill Hearings and Ag Day in Michigan and Wisconsin. Our success will be determined by the strength of the relationships we have with elected officials, and that is why your support of the PACs is so important. Thank you for being a champion of our communities and the agricultural industry! ■
Congratulations to Joshua Quaderer and Charles Neuenfeldt as they lead the Association in the number of customers contributing to the state level PACs.
Actual Campaign Contributions:
• MI: $39,831.91 from 489 contributors
• WI: $3,896.73 from 62 contributors
• Farm Credit: $21,890 from 98 contributors
and lay back, but nothing felt quite right until he found this renovated cabin on more than forty acres of land in August 2022.
“My sons Tyler and Braden have been hunting their whole life, it’s something we love to do together, so we wanted to have a place where we had our own piece of property to hunt on,” said Matt. “It was also important for it to be a place for my wife
Amy to just hang out, not just a place for us to spend deer season. We found this place and it checked all of the boxes.”
The place has everything he was looking for including a pole barn and a garage.
A Familiar Face
When Matt made the decision to buy it, he worked with GreenStone to secure the
Now, he’s turning in his badge to enjoy a much-deserved retirement filled with his family and the great outdoors. Retiring as a captain, Matt has served in a number of roles with the department including overseeing the Special Operations Division and SWAT team along with serving as a lieutenant.
Serving in law enforcement was always his dream after growing up and watching his father and brother also serve on the Grand Rapids Police Department.
After his years of dedicated service, Matt is ready for some relaxation, and he has the perfect place to do it – his new outdoor getaway just outside of Lake City, Michigan.
Matt has known for years that, when he retired, he wanted a cabin up north to escape to. He looked for years to find the perfect paradise where he could both hunt
➡ After years on the police force, Matt is ready to sit back and relax at his new outdoor getaway.
View a highlight reel video at: www.greenstonefcs.com/CLSpring23
Matt Ostapowicz has spent nearly three decades fighting crime as a member of the Grand Rapids Police Department.
funding he needed to make it his own. Little did he know that the help he would get from GreenStone was from a neighbor and former high school acquaintance living half a mile down the road – Financial Services Office Joel Norkus.
“I reached out to GreenStone and soon realized I was going to be working with someone I already knew from high school,” said Matt. “I thought that was pretty cool.”
That professional partnership soon turned into a friendship.
“It was kind of a funny initial call because I remembered the name from high school,” said Joel. “We didn’t know each other well back then, but we have certainly become
friends over this process.”
Joel was thorough and used his resources to help Matt get this dream property.
“The cool thing was that he was very creative as far as figuring out the easiest way to secure the loan,” said Matt. “He was very responsive. I could text him a quick question and he always emailed over the options we have. He made it comfortable, as scary as it is buying another property.”
By October, Matt closed on the property and has spent several weekends there already.
“Since we bought it, I think we have been up there almost weekly. I spent a lot of time
there during hunting season,” said Matt. “My sons have been up there this winter riding snowmobiles with their friends.”
In January, Matt’s family surprised him with a celebration at the cabin with all three of his children, including his daughter Calli who lives in Nashville, Tennessee.
“That was the first time we were all there together,” said Matt. “That was awesome to have my whole family up there.”
And Matt is glad that his family enjoys this outdoor getaway because that was always the goal – to keep this property in the family.
“His big plan was to have a getaway place with lots of land where his family could hang for generations, and I was happy to help him do that,” said Joel.
That’s why Joel loves being a part of the GreenStone team – because many of his customers aren’t looking for a temporary place to hang their hat, but rather a longterm family heirloom.
“I’ve been in the business for 25 years, and before I got to GreenStone, it was always about buying a house that people would be in for a few years. GreenStone clientele is noticeably different where they are trying to buy an asset that hopefully stays in the family for a long time, if not forever. Knowing I can help someone do that is extremely rewarding,” Joel reflected. And there’s not many people more rewarding than someone like Matt and his family. As far as the future, he hopes to spend even more time up north, now that he’s officially retired, and he has some other ideas in mind that could help his bottom line.
“I’m just happy it’s a place we can spend a long weekend. My wife can even work remotely there, so we like to go up on a Thursday and come home on Sunday or Monday,” said Matt. “I’m considering taking some timber from the land, and hopefully improving the habitat a little for hunting, too.”
Matt knows that if he ever decides to expand his retirement getaway, his friend Joel at GreenStone will be there to help him every step of the way.
“There are a lot of benefits of my job, but helping the members will always be my favorite part of this gig,” said Joel. ■
“ I reached out to GreenStone and soon realized I was going to be working with someone I already knew from high school.➡ Matt and his wife Amy enjoy some peace in quiet at their new cabin in Lake City, MI.
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:
Whether you’re building your first home or your third, there are many factors to consider when you’re looking at a home construction loan.
Country Minute: Is right now a good time to buy a home?
Buying your dream home can be a huge decision and deciding when the time is right can be even more daunting.
Thank you to all the hunters who participated in GreenStone’s annual Wisconsin Deer Challenge –we hope we helped make your hunting season a success!
Country Minute: Tax Breaks for Homeowners Home ownership is part of the American dream…but so is financial stability.
Frequently Asked Questions about Buying a Country Home GreenStone’s Country Living loan officers have extensive experience in financing country homes and rural properties, and have shared a list of their most frequently asked questions. ■
Winter has finally released us from its dormant icy and snowy grasp, and given way to the powerful and energy-charged changes of Spring! We will miss the ice fishing, snowmobiling and skiing, but we welcome the warmer weather and watching our outdoor world renew and grow once again.
As the trees are budding and perennial flowers are fighting their way through the cold ground, the fishing opportunities in our great state abound. Spring is synonymous with walleye fishing in the southeast part of the Lower Peninsula. These delicious sportfish create a frenzy for anglers of all ages during their massive spawning run –most notably in Lake Erie, and then on the Detroit River and the St. Clair River. This time of year also welcomes a world-class bass fishery on Lake St. Clair, with families and tournament anglers alike casting the waters of this amazing and ever-plentiful body of water. Michigan’s trout season opens statewide the last Saturday in April, bringing with it a powerful story of an
outdoor heritage steeped in tradition. Spring warmups also signal the mighty steelhead to begin their spawning runs. Anglers will battle their fair share of Michigan spring steelhead on the Pere Marquette, Muskegon and Big Manistee Rivers. There’s virtually a never-ending list of fishing opportunities here in the Great Lakes State!
Spring in Michigan also marks the return of robins and red-winged blackbirds, with their unmistakable songs echoing in our backyards. Another feathered species that brings excitement with its springtime calls is the wild turkey. Turkeys can be found in most every county in the lower Peninsula, and many areas in the upper Peninsula as well. Hunters take to the woods and fields each spring in pursuit of this wary species that proves to be both exciting and frustrating to hunt. Majestic toms are the focus, and their piercing gobbles fill the woods and roll through the early morning fields in April and May. Through successful management efforts by the state and private organizations alike, the wild turkey is absolutely flourishing in Michigan.
Springtime is also a time for foraging Michigan’s forests for edible resources. Careful naturalists hike the land and harvest many edible plants and mushrooms in our great state. There’s plenty of delicious foraging opportunities for novices as well. The morel mushroom is a unique and tasty
addition to many dishes, and folks love hunting for them in the spring. Both white morels and black morels can be found here in Michigan. Many people have their triedand-true ways to find them, whether that’s under dead elm trees or in the remains of large burn sites in forests. Fiddleheads from ferns, and wild ramps (or wild leeks) are other delicacies here in Michigan but may only be harvested off of private land. This year, when you see farmers planting their crops and the woods turning green, look to Michigan’s outdoors for an unending list of ways to enjoy all of our protein-packed (and edible) renewable resources Mother Nature provides. ■
It’s spring time in Michigan, and that can have lots of different meanings to different people.
“ Springtime is also a time for foraging Michigan’s forests for edible resources.
As the crisp winter snow melts away and the rays of sun begin to shine through, the arrival of spring is here.
The new life of spring inspires joy and the dreaded winter blues fade away. It’s no coincidence that the first day of spring is also the International Day of Happiness. This new beginning is the perfect time to self-reflect and make lifestyle changes that rejuvenate the body and soul. Self-care is important and encourages a healthy body and mind attitude that allows you to conquer the many twists and turns that life entails.
Begin the season of self-care by taking ten minutes to yourself to recharge your battery. Take these ten minutes to do whatever brings YOU joy. Spend ten minutes reading your favorite book, taking a walk in the sunshine, or simply enjoying quiet time. No matter how short the time may seem, these ten minutes allow you to take a step back from the hustle and bustle of daily life and experience a greater sense of focus, calmness, and clarity.
When people think of self-care, spa days and vacations fill their minds. But selfcare does not have to be expensive or unreachable; instead, take advantage of the free and easy options. Nature is a great resource for revitalizing the mind and body. During your free time, go for a walk or eat a meal outside. Soaking in the rays of sunshine and breathing in fresh air improves your vitamin D levels and strengthens your immune system. If the rain or daily tasks keep you from enjoying the spring afternoon outside, try bringing the power of nature to you! Open the curtains to let in sunlight and populate your desk with plants. Working in natural light has proven to keep your eyes healthy and boost your energy. And plants purify the air around you while providing you with a sense of tranquility.
Lastly, focus on your surroundings. During our busy lives, we spend most of our extra time in the comfort of our homes. Clutter
can quickly become overwhelming and impact our mood. Decluttering leads to multiple mental health benefits including improved mood, less anxiety, and more energy to be productive. Tackling the task of organizing and deep cleaning can seem daunting and the question for where to begin arises. Instead, break the tasks down into daily projects that only take an hour or less of your time. For example, dedicate Monday to organizing the kitchen cabinets and then focus on closets on Tuesday. This makes the process less intimidating and more successful in the end.
There is no defined correct way to enact self-care because it’s unique to each person. Focus on what activities bring you happiness and promote success in the new season! ■
This is a very creamy and refreshing Middle Eastern pasta dish. It's best served immediately because the sauce will thicken over time. The meat can be mixed in or served on the side for those who want less meat than others.
Recipe Summary
Servings: 4
Prep Time: 10 min.
Cook Time: 20 min.
Ingredients
• 8 oz ground beef or lamb
• 1 small white onion, minced
• 1 cup plain yogurt
• 3 cloves garlic, minced
• 1 tablespoon vegetable oil
• 1 tablespoon fresh mint OR 1 teaspoon dried mint
• 1 teaspoon salt
• 1/2 teaspoon ground black pepper
• 1/4 teaspoon ground white pepper
• 1/4 teaspoon cumin
• 1/4 teaspoon garlic powder
Directions
In a medium pan, bring salted water to a boil. Add pasta and cook according to package directions. Strain the pasta and save about 1/2 cup of the water.
In a medium sauté pan over medium heat, add half the vegetable oil. After the oil has heated, add minced onions. Cook onions until translucent and aromatic, about 2-3 minutes. Add ground meat and season with salt and black pepper. Cook until the meat is browned through, about 8-10 minutes. Drain fat. Transfer cooked meat to a bowl and set aside.
In a small pan, combine yogurt, white pepper, cumin, and garlic powder and cook over medium heat until mixture comes to a soft boil and thickens. Remove pan from heat. Add pasta water to reach desired consistency of sauce.
In the same medium sauté pan used to cook the meat, add the remaining vegetable oil to the pan over medium heat and sauté the garlic until golden in color, add mint. Remove from heat and pour over yogurt mixture.
Mix all ingredients together and serve. ■
Source: Dairy Means More - United Dairy Industry of Michigan (milkmeansmore.org)
As the weather warms and flowers bloom, we all find ourselves in awe of nature. To protect this natural beauty, there are multiple ways we can help to limit our footprint on the world
Many of us wish to make our lives healthier, simpler, and more positive, but we don’t know where to begin. Even the smallest change can have a global impact and this spring is a great time to begin!
Gardening is a large topic every spring and with gardening comes the idea of composting. Composting is the use of turning organic materials, such as discarded fruit peels or eggshells, into nutrient rich soil through decomposition. Many of the waste products from cooking or yard work can be used in composting. It may seem like a complicated project, but all it takes is food scraps, dry leaves, woody material from yardwork, and a designated area or bin to make it happen!
After a few quick Google searches, composting can leave you with bins of nutrient rich soil that’s perfect for any garden. During the process of composting, you can feel good knowing that you have now begun sustainable waste management in your home. The food scraps and yard trimmings have been recycled into a useable product. It also reduces the amount
of greenhouse gases that end up in the atmosphere and is a great way to save money for your garden by reducing the amount of soil, pesticides, and fertilizers you’ll need to purchase.
Another simple way to reduce your carbon footprint is reusable products. A significant amount of waste is from single use plastics. Something as simple as using beeswax wraps instead of plastic wrap can have a significant effect on your amount of weekly waste. Beeswax wraps can be washed in cold water and reused for weeks at a time.
Reusable bags or containers are also a great way to reduce plastic waste. While packing lunches, choose a reusable silicon bag or sealable contain that can be washed after each use. Convenience is important, so start small. You can start by using these for snacks or less messy foods to make clean-up easy!.
Small changes make a difference. This spring, challenge yourself to make a positive impact for yourself and the community around you. ■
What used to be considered a rare event historically speaking, seems like storms that can produce hail are becoming far more commonplace now in our area of the country. Hail is a separate policy from your multi-peril crop insurance coverage. Federal crop insurance covers hail damage as it relates to yield reduction, but producers can also purchase separate hail coverage for their crops from the same companies that offer federal crop insurance. As a bonus, your hail policy can provide coverage for fire, lightning, vandalism/malicious mischief and transit to the 1st place of storage.
Hail insurance is based on the percent of damage received at a particular growth stage, which allows insurance companies to perform adjustments and pay indemnities during a growing season, without having to wait until harvest. Rates and coverage vary by crop and
county. Keep in mind, hail insurance must be purchased before damage occurs. Below are some other important items of note regarding hail coverage.
• Most hail insurance covers other perils above and beyond hail damage. Beyond hail, most policies also cover fire, vandalism and malicious mischief, transit to the first point of storage, and stored grain coverage if you happen to have a bin(s) at home.
• Hail coverage is available on most any crop; if you don’t have a Federal crop insurance option, we can generally at least get it covered for hail.
• A customer can carry a Federal MPCI policy as well as a hail policy and collect on both in the event of a loss.
• Hail coverage is based on a dollar amount of coverage per acre, with premium generally
quoted per $100 of coverage. For example, if someone wanted to cover their corn at $700 per acre, and the premium was 60 cents per $100 of coverage, their premium for corn would be $4.20 per acre.
• One benefit to hail insurance over MPCI is that you can insure up to the total expected value of the crop, whereas on MPCI you’re limited to 85%.
• Hail coverage generally has many different endorsements available, including quality endorsements on crops intended for fresh market, canning reject endorsements, etc.
To learn more on how a hail policy works or what options are available and covered with a hail policy, contact your GreenStone crop insurance specialist today to set up an appointment to review your options. ■
If weather conditions prevent you from planting or you need to replant a crop, you may qualify for a claim. File a claim with your Specialist before replanting. DO NOT replant until you have received approval to do so or, you may not receive an indemnity.
If you have a prevent plant situation, a claim must be filed within 72 hours after the end of the late planting period which varies by crop. (There is a minimum requirement of 20% of the unit or 20 acres for both replant and prevent plant claims, whichever is less.) Some important changes were made for the current crop year regarding both Replant and Prevent Plant rules. Depending on the timing of the replant period, weather and field conditions, you could be required to replant. Please contact your crop insurance specialist for the most current rules and guidelines. ■
The earlier we get started on reporting your planted crop acres, the earlier we can process your reports and return for your review. It is the customer’s responsibility to report the crop that was planted in each section, the planting date and your percent share of that crop. Reporting your crop accurately and double checking everything on the Schedule of Insurance is very important. Corrections or changes cannot be made after the July 15th reporting deadline. You do not need to report to FSA before reporting your planted acres to your crop insurance specialist. If you use precision planting technology, we can save you a lot of time reporting acres. Contact your local GreenStone crop insurance team if you have any questions or would like assistance, they will be more than willing to help. ■
Crop insurance alerts will be sent on an “as needed” basis to customers. These alerts will now come by email or mail. The goal is to communicate any vital information that we receive and feel necessary to pass along to you timely. Watch for postcards or emails with “Alert” in the subject line!. ■
If you are planning on possibly removing a first crop to plant a second, make sure you contact your crop insurance agent before doing so. You could potentially be eligible for a claim, but you may forfeit that eligibility if you act before contacting your agent to discuss your options! ■
Appraisals are required when a customer plans to do something with the crop other than harvest in the normal manner. If you do not plan to take your wheat/ forage crop to harvest, we must appraise the acres prior to destruction. ■
Early and final plant dates vary by crop, county and state. Coverage levels can be reduced if a crop is planted too early or too late. Please check with your crop insurance specialist or actuarial documents for specific details and dates for your county if you are unsure about which dates apply to your policy. ■
The added subsidy on the enterprise unit structure makes it an affordable option for many producers. The downside is, if you don’t end up planting the required acreage, your policy can revert to a basic unit structure, and your premium could increase substantially. There are two requirements to qualify for enterprise units:
You must farm in two or more separate sections.
AND
At least 20 acres, or 20% of your individual crop acreage, whichever is less, must be planted in that second section.
Adverse spring weather has the potential to cause prevented planting which could take some producers out of enterprise unit eligibility. Make sure to contact your crop insurance specialist if you anticipate any issues with meeting the enterprise unit requirements. ■
Most producers have been there before. No matter what you do during the growing season, sometimes Mother Nature just will not cooperate, and you are anticipating that your yields may fall below your guarantee. Obviously, this is not the situation you would like to be in, but that is why you purchased crop insurance to begin with. If you do find yourself in a claims situation, there are some important things to remember that can help the process go a lot more smoothly.
Insurance coverage generally begins at time of application or time of planting, whichever is later. The end of the insurance period is the earlier of total destruction of the crop, final harvest of the crop, abandonment of the crop, or the end of the insurance period. (October 31st for wheat) It is the insured’s responsibility to notify the insurance company within 72 hours of the initial discovery of the damage or production
Did you know that if you have a claim that results in an indemnity payment, you can have that direct deposited into your bank account? Don’t wait on the mail to receive your money. Have it direct deposited on the same day that your claim is finalized. Contact your crop insurance specialist for details on how to make that happen! ■
loss, but no later than 15 days after the end of the insurance period, even if the crop has not been harvested. A phone call to your crop insurance specialist can start the process but, needs to be followed up in writing with a text or email. If you have a revenue protection policy and have a claim based on strictly price, the insurance company must be notified within 45 days of the harvest price announcement for the crop. The RMA is enforcing these rules and have been known to decline late filed claim requests and have even requested repayment from an insured for paid claims that were improperly filed.
Remembering these key points will help avoid any problems with your claim and make the process go that much better. As always, if you have questions based on what you’ve read, please contact your crop insurance specialist and they will be able to help you out. ■
Some of you are probably sick and tired of this topic, but it has continued to stay in the news. Claims of every employer being eligible for $26,000 per employee are all over the place – I am seeing it on Facebook, hearing it on sports podcasts, seeing it advertised on TV. Many of you are receiving promotional materials in the mail with your potential credit included based on publicly available PPP information. This can be extremely exciting for many of you. But remember the old saying – is it too good to be true? Remember these points we’ve shared previously:
1) Work with reputable providers when claiming the ERC.
2) Know that you are actually eligible for receiving the ERC based upon either shutdown or gross receipts reduction criteria.
3) Keep excellent records on how you determined your eligibility –you may be audited.
4) Ultimately you are responsible for ensuring your eligibility. In the fall of 2022, the IRS put some teeth related to ERC in a warning and reminded individuals and businesses that false claims would generate compliance risks for those that claim the credit improperly – including potentially significant interest and penalties.
All this being said, this is an excellent credit to look into and determine if you are eligible. We have helped many customers that were eligible in applying for the credit and most are receiving the funds in approximately 12 weeks via paper checks after mailing in amended payroll form documents.
There is still time to investigate this - the deadline to file amended payroll tax returns is January 31, 2024 for the 2020 tax year, and January 31, 2025 for 2021. If you file 941 quarterly payroll forms, the expiration for 2020 starts earlier during 2023. There is still time to consult with a trusted advisor prior to filing for and claiming the credit. GreenStone is ready to help if you need us.
How long should I keep information? We are asked that all the time by customers. The safe bet is to keep your information forever, but sometimes that is not feasible. Here are some best practice recommendations for record retention for your farming operation for different types of business documents. If you feel any recommendations conflict or overlap with each other, chose to keep the information at the longer recommended time period!
It’s best to keep business formation records, deeds, patents and registrations, property appraisals, bill of sale documents and other ownership records indefinitely.
According to the IRS, tax returns should be kept for three to seven years, depending on the situation. But, if you don’t file a return, the IRS recommends keeping “records indefinitely.” Keep federal tax returns, including payroll tax records, for seven years to stay on the safe side.
Refer to the federal record retention guidelines for a precise breakdown of requirements. For instance, documents relating to exposure from harmful agents must be kept for 30 years after employment ends. In contrast, you need to keep OSHA accident forms for five years after the incident.
Payroll information
4+ Years Keep your employment tax records for at least 4 years after the tax becomes due or is paid, whichever is later.
Retain all small business accounting records applicable to your taxes, including depreciation schedules and year-end financial statements, for at least seven years. Your CPA or Tax Accountant may recommend keeping accounting records indefinitely!
Keep all permits, licenses and insurance policy documents until you receive replacements for expired ones. Bank
7 Years All business banking, credit card, and investment statements, as well as canceled checks, should be kept for seven years, possibly longer, depending on your business or tax circumstances.
Wouldn’t we all love to receive our income tax returns and feel great about the experience? An experience without any surprises in the amount we owe or refunds we are receiving – that is definitely the goal when we are working with our customers. But it does not happen in all instances. Why is that? While tax accountants are knowledgeable and generally well versed in tax laws, they are not magicians, nor can they read minds. Therefore, it is critical you stay engaged in the tax planning and preparation process and provide the necessary information up front in order to receive efficient and effective guidance.
A few tax planning tips:
• Have your records in order. Having an accurate set of financial records is critical for a tax preparer to work with – preferably, not a shoebox of receipts. A computer program or a worksheet that reconciles back to your bank and debt statements is best. This is generally the first step in good financial planning and a piece that should not be ignored. If this is not something you want to do, it may be best to hire a bookkeeper or accountant to assist you.
• Don’t procrastinate. Waiting until December to start your bookkeeping leaves you scrambling to complete activities to help your tax situation.
• Get off autopilot. It is not uncommon to see businesses make financial decisions that they shouldn’t have made because books are not up-to-date. Examples include buying the same amount of prepaids as last year or making a capital expenditure because you had to last year, only to find out that neither were necessary because you were in a different position than a year ago.
• Nothing is irrelevant. Make sure you tell your tax preparer about all equipment purchases. For instance, if equipment is dealer- or manufacturer-financed, it may not show up
in your bank accounts if no payment was made in the tax year. That can be a sizeable capital expenditure your tax accountant would not know about unless you tell them.
• Meet with your tax accountant early. Meet before the end of the year to discuss your current financial situation and what tax bracket you will likely be in. Allow enough time to bring in additional income if facing a net operating loss, or to make additional purchases if your income is too high.
• Read your tax organizer. Read the tax organizer that your accountant most likely provides to you – it is a great summary of almost all relevant items to your tax filing requirements. If you complete that, it helps you feel confident that no stones were unturned to minimizing your taxes and also to completing a bullet proof accurate return.
• Understand tax impacts when projections change. Tax planning is typically completed using actual numbers through a certain point of the year with the rest of the year covered by customer projections. Make sure you understand those numbers well. When projected revenues are significantly higher or deductions are significantly lower than planned, know how that will impact your tax liability. If necessary, get with your tax accountant to update tax projections. It may cost you a little additional in professional fees for the tax accountant services, but it will likely be worth it in income taxes saved.
Reach out to your local GreenStone tax and accounting professional if you need assistance with any financial related services. Our team of experts is ready to help! ■
Individuals file a 2022 income tax return (Form 1040) and pay any tax due. If not able to file, file form 4868 to request an automatic 6-month extension. If tax is due it must be paid with the Form 4868.
1st quarter estimate is due for 2023 for individuals that pay estimated taxes.
Corporations file a 2022 calendar year tax return (Form 1120) and pay any tax due. If not able to file, file Form 7004 to request an automatic 6-month extension.
Corporations deposit the 1st installment of estimated income tax for 2023.
Non-farm employers file Form 941 for the 1st quarter to report Social Security, Medicare, and withholding.
2nd quarter estimate is due for 2023 for individuals that pay estimated taxes.
Corporations deposit the 2nd installment of estimated income tax for 2023.
Non-farm employers file Form 941 for the 2nd quarter to report Social Security, Medicare, and withholding. Form 5500 is due for all employers that maintain an employee benefit plan such as a pension plan.
If not able to file, file form 5588 to request an automatic 2.5 month extension.
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While tax accountants are knowledgeable and generally well versed in tax laws, they are not magicians...
However, with the advancement of technology, the risk of fraudulent checks has increased significantly. According to the Financial Crimes Enforcement Network (FinCEN) there was over 680,000 reported Suspicious Activity Reports (SARs), that was an increase of 50% compared to 2021. Mail theft-related check fraud continues to be one of the most significant money laundering threats to the United States (FinCEN, 2023). Unfortunately, numerous GreenStone customers have reported stolen checks from their mailboxes in the last year. In this article, we will discuss the different types of check fraud, how to prevent it, and what to do if you are a victim.
A fraudulent check is a check that is not genuine and is usually created to deceive an individual or business. The check may be created by copying an original check or
may be entirely counterfeit. The fraudulent check may be used to obtain goods, services, or money from an unsuspecting victim. Fraudulent checks can cause significant financial losses for individuals, businesses, and even financial institutions. It is essential to be aware of fraudulent checks to protect oneself from falling prey to these scams.
Fraudulent checks come in different forms, and scammers are continually coming up with new tactics to deceive people. Some of the common types of fraudulent checks include:
1. Forgery: Forgery occurs when someone signs a check that does not belong to them. This can be done by stealing a checkbook, creating counterfeit checks, or altering an existing check. In some
Checks have been a reliable and common mode of payment for several decades.
cases, the stolen check is used as a template to create multiple fraudulent checks.
2. Counterfeit checks: Counterfeit checks are fraudulent checks created to look like legitimate ones. They can be made by scanning, copying, or printing checks. Counterfeit checks are usually created using high-quality printing materials to make them look authentic.
3. Check kiting: Check kiting is a form of check fraud where someone writes a check from one account and then deposits it into another account. The check writer takes advantage of the time it takes for the funds to clear, writing checks on the deposited funds before they have cleared.
4. Check washing: Check washing involves removing the ink from a legitimate check using chemicals, and then rewriting it with new details, such as a new payee or a larger amount.
5. Paperhanging: Paperhanging occurs when a person writes a check for a purchase, knowing that they do not have sufficient funds in their account to cover it. The individual may repeat this process with multiple merchants, leaving them with worthless checks.
Check fraud is a crime that can be prevented with some simple measures. Here are some tips to help prevent check fraud:
1. Keep Your checks safe: Keep your checks in a safe place, preferably locked away. This will help prevent them from being stolen or misplaced. It is also a good idea to only carry the checks you need when you go out.
2. Monitor your bank accounts: Regularly monitor your accounts to ensure that all transactions are authorized. If you notice any unauthorized transactions or discrepancies, report them to your bank immediately.
3. Use secure mail: When sending checks through the postal service, use a secure mailbox or PO box. Do not leave outgoing checks in your home mailbox for pickup by the postal worker.
4. Be cautious when giving out checks: Only write checks to people or companies you trust. Avoid writing checks to people you do not know or for vague / unclear purposes.
5. Use security features: Use checks that have security features, such as watermarks, microprinting, or heat-sensitive ink. These features make it more difficult to forge or alter checks.
6. Use online banking: Use online banking to monitor your account activity and set up alerts for any unusual transactions or suspicious activity. Consider using online banking capabilities to make payments electronically. If you do, make sure you take the appropriate due diligence and protect your accounts by enabling multifactor authentication on your accounts. If you suspect that you have become a victim of check fraud, it is important to take immediate action to minimize any potential losses. Here are the steps you should take:
1. Contact your bank or financial institution: Report the fraudulent activity to your bank or financial institution immediately. They will be able to help you stop any unauthorized transactions and freeze your account to prevent further losses.
2. File a police report: Contact your local police department and file a report of the fraudulent activity. Be sure to provide as much information as possible, including any evidence you may have.
3. Keep all documentation: Keep copies of all documentation related to the fraudulent activity, including bank statements, canceled checks, and police reports.
4. Contact the payee: If the fraudulent check was written to a specific payee, contact them immediately to inform them of the situation.
5. Check your credit report: Check your credit report for any unauthorized accounts or
activity. Contact the credit bureaus to report any discrepancies. Keep credit bureau’s frozen to prevent additional accounts from being opened.
6. Consider identity theft protection: If your personal information was compromised as part of the check fraud, consider signing up for an identity theft protection service.
Check fraud is like a weed that can quickly spread and take over a farm if not dealt with promptly. Much like a farmer who must constantly monitor and protect their crops from weeds, individuals and businesses must also be attentive in protecting themselves from check fraud. By applying preventative measures such as securing checks, monitoring accounts, and using security features, one can effectively create a strong defense against check fraud. However, if check fraud does occur, it is important to take immediate action and report it to the proper authorities, just as a farmer would quickly remove weeds to prevent further damage to their crops.
By treating check fraud as a persistent and ever-present threat, individuals and businesses can ensure their financial wellbeing remains healthy and robust, much like a well-tended farm.
FinCEN. (2023, February 27). FinCEN Alert on Nationwide Surge in Mail Theft-Related Check Fraud Schemes Targeting the U.S. Mail. www.fincen.gov. ■
Matt Ostapowicz has spent nearly three decades fighting crime as a member of the Grand Rapids Police Department. Now, he’s turning in his badge to enjoy a much-deserved retirement filled with his family and the great outdoors.
Read more on page 27.
