Partners - Summer 2015 by GreenStone Farm Credit Services

GreenStone FCS

Summer 2015

Promoting the business success of our customers and the rural community

Pick Up The Hammer Market Outlook Customer Privacy

UP AND COMING

Be On The Lookout Claims Appraisals

SUMMER 15 6 YBSF Feature. John Boynton was studying food marketing at Western Michigan University and was five classes away from graduating when his dad fell ill. This twist of fate and an entrepreneurial spirit has put John on the path to a bright future in farming.

30 GreenStone Story. We take your privacy seriously, GreenStoneâ&#x20AC;&#x2122;s customer bill of rights guarantees it.

32 Country Living Feature. Building a dream home and managing the process yields stunning results for Davisburg, Michigan couple.

36 Tax Feature. Tax related identity theft is on the rise; learn the latest trends and ways to stay protected. 41 Crop Feature. Sometimes mother nature will not cooperate. Remember these important things to make your claims go smoothly.

Editor’s Note: 4 CEO Comments. President and CEO Dave Armstrong acknowledges the wet growing conditions within our territory and recognizes past board member, Cathy Webster, for her years of service to Farm Credit. 10 Guest Column. Taking on extra help may be the secret to effectively managing your operation. 12 Market Outlook. Bob Utterback predicts how the market might settle and uncertainty of supply could favor those who are properly positioned. 16 Guest Column. Named one of the “Faces of Farming,” Carla Wardin is sharing the story of agriculture. 22 Great Lakes Leadership Academy. GreenStone’s, Melissa Humphrey, reflects on her recent trip to China as part of her leadership development. 24 GreenStone Scholarships. Recently, $40,000 in scholarships were awarded to 2015 graduates. 26 PAC Progress. Keeping Farm Credit top of mind on capitol hill is an ongoing effort.

34 Health and Wellness. Enjoy the water this summer but keep these safety tips in mind. 36 Scam Alert. Are you the target of a tax scam? Look out for these warning signs. 38 Agriculture Efficiency Cycle. AgriBank drills down on the key points of operating efficiency and shares some historical data on the subject.

No shocker, the value of this publication comes by way of the content…the guest columns from industry experts; the feature stories of farmers and customers whose stories are uncannily relatable; the news and updates you use to stay informed; and the simple extras that add a bit of lighthearted awareness to your life. But that doesn’t mean it has to be black and white with text all over…you can enjoy the experience along the way, and we hope you do! While this is the third issue of Partners in its new combined format, we would like to continue showcasing a few features within the publication that may help you with that merry experience. In the first issue we explained the merger of the four publications; this spring we dove into the publication layout, explaining the purpose behind the four segments: Grow, Connect, Live, and Learn. This time, let’s put the spotlight on a few noteworthy graphics.

41 Crop Claim Appraisals. If you find yourself in a claims situation, here are some tips to help the process go smoothly.

Look up and you will find a series of three colored squares at the top corner of the page; they correspond with the four sections, consider them your personal “Partners compass.” Likewise, the single colored square often found toward the bottom of the page is placed specifically to denote the end of that article. Grow = Green, Connect = Blue, Live = Gold, Learn = Purple.

9 Where Are They Now

This “leafy i” means Partners is growing with more information—it is your clue to some quick and helpful tidbits. The icon is always attached to the Tech Tip, but other times you will find it sharing more details related to an article, outlining statistics on a relevant commodity, or even offering some unexpected fascinating facts.

15 Road Safety 17 Member News 19 Behind the Scene 20 Calendar of Events 20 Candid Comments 20 Pause for Applause 21 Summer Interns

35 Vacation Precautions

27 Legislative Matters. Representative John Moolenaar addresses farm issues in the U.S. House.

35 Commodity Cuisine... Blueberry Buckle

28 Directors’ Perspective. Three directors offer insight on GreenStone’s community involvement.

37 Tax Calendar 42 Crop News 43 Crop Insurance Calendar 43 Tech Tip

When you see this group, it’s time to get online and engage with us socially. You may be directed to something already posted, see a reason to start the conversation, or we may be sharing a special notice of what’s to come. Whatever the case, GreenStone’s social sites are a great way for you to stay informed in between these four issues of Partners; and you can even help us know what is important in your GreenStone relationship! So don’t miss a page; you never know what you will find within the magazine covers—graphics and content all designed to help fill your personal interests and professional needs…joyfully! Happy reading!

This newsletter is published quarterly for the customers of GreenStone Farm Credit Services. Partners 3515 West Road East Lansing, MI 48823 517-318-2290 marketing@greenstonefcs.com

CEO Comments:

If it were easy, anybody could do it! WHAT A DIFFERENCE A FEW WEEKS MAKE! A MONTH AGO I MIGHT HAVE WRITTEN HERE THAT CROPS WERE, IN GENERAL, OFF TO A MUCH BETTER START THAN 2014—EARLIER PLANTING RESULTING IN GROWTH AHEAD OF SCHEDULE. UNFORTUNATELY, A FEW WEEKS MAKES ALL THE DIFFERENCE, AND WHILE PLANTING SEASON WAS RELATIVELY DRY, MANY AREAS HAVE NOW BEEN DROWNED OUT WITH MONSOON-LIKE RAINS SINCE THE END OF MAY; AND THESE DEVASTATING RAINS HAVE CONTINUED ALL THE WAY THROUGH JUNE.

Summer 2015 — Partners

Director Thank You

With more than five inches of rain in a day, many areas of our territory are now suffering from the wet consequences. The irony is some of us will undoubtedly be praying for rain again at some point this summer. And so it goes in our industry, jumping from one extreme to another. As the old adage says, “If it were easy, anybody could do it!” Based on reports from around the country, we certainly are not alone when it comes to wet conditions. With any luck, the market may provide some weather rallies to contract additional bushels above projected prices. While the outlook nationally remains somewhat bleak for corn, soybean, and wheat growers, dairy, swine, poultry, sugar beet, and many specialty crop growers should generally experience positive margins this year. The lower cost of feed for “protein“ producers, relatively strong demand, and earlier price protection taken on 2015 production will all serve to provide them with higher levels of net income than their cash grain counterparts. Also, demand for many of the specialty crops in our region remain sound. While some fruit areas have suffered more than others from hard winters and late frosts, such as cherries and wine grapes in the Traverse City area of Michigan, yields are expected to generally be ‘ok.’ Those of us who have been in agriculture awhile know all too well about the cycles in this business. For the last several years, it seemed like nearly every commodity was doing exceptionally well and that it would never end. But, even with some possible weather related rallies in the cash grain markets, net farm income is forecast to be $73.6 billion in 2015, down nearly 32 percent from 2014’s forecast of $108 billion. The 2015 forecast would be the lowest since 2009, a drop of nearly 43 percent from

the record high of $129 billion in 2013.

I also want to take a moment to recognize Cathy Webster for her 23 years of service as a Farm Credit board member. Cathy was first elected to the board of directors of Farm Credit Services of Michigan’s Heartland in 1992 and remained on the board through the GreenStone merger in 2000. During her tenure, Cathy served on a number of different committees with the most recent being Vice Chair of the Audit Committee. She was also a member of the Building Committee which oversaw the design and construction of GreenStone’s new corporate office that opened in the fall of 2010. Cathy has always been a strong supporter of GreenStone and represented her region in a professional manner.

As I pointed out in the last issue of Partners, we at GreenStone understand these cycles and have been preparing I will personally miss her enthusiasm for our industry, engaging personality, concern for an extended for the members she served, and support she has given me and the rest of the downturn since the GreenStone management team over the years. association was created. Please join me in wishing Cathy only the best in her future endeavors and thank her This includes maintaining for her many years of service to Farm Credit. sound underwriting standards, diversifying risk in the portfolio by geographic location and alternatives we discussed should producers to achieve breakeven commodity, using hold limits on or even profitable margins yet their financial position deteriorate individual transactions, recent use this year. However, GreenStone in the future. of “caps” on the debt per acre will continue to prepare for the GreenStone respects and values we will lend, development of less storm clouds on the horizon and the relationship it has with each tenured staff to handle stressful encourage our members in this of its nearly 24,000 member/ situations, prudently managing segment to do the same. Finally, I stockholders, but we must weigh the organization’s capital level, want to also take this opportunity the risk assumed when assisting and many more. to welcome Terri Hawbaker to the any individual member with what GreenStone board of directors. While our financial performance is in the best long-term interests Terri will be representing Voting year to date has been very strong of the stockholder base at large. Region 6 with a four year term. and is anticipated to remain so In order for GreenStone to make She and her husband Rick, own through year end, we know all is good on its promise to be there and operate Grazeway Dairy near not as it may appear. Our 2015 “in good times and bad” for Pewamo, Michigan. Terri is on the “renewal” season uncovered all members, the terms of any national board of directors for the early signs of financial stress that individual lending relationship American Forage and Grasslands impacted a number of our cash may need to change for those Council, and is also active in grain members due to lower who encounter financial difficulty. a number of other industry commodity prices and “sticky” No one likes to be in such a organizations. You will find a costs of production. For the position, but more stringent terms more complete introduction to most part, these members had Terri in the fall issue of Partners. sufficient equity for us to continue and a shared responsibility for the added risk is necessary for us to Please join me in congratulating our relationship with them even serve the rest of the membership Terri on her election to the board. though we may have required more conditions such as additional with a competitive, dependable, Best wishes for a safe and and responsible source of credit collateral, guarantees, or capital productive growing season! And, for generations to come. spending restrictions, among as always, I want to thank you for others. We also spent more time I remain optimistic that your business and encourage you analyzing individual member’s market dynamics will provide to contact me directly if I can ever working capital positions and opportunities for cash grain be of assistance. corresponding “burn rates” under various yield/price scenarios to better understand the additional risk in these operations and provide awareness to the individual member(s) about their situation to help them develop Dave Armstrong corrective action plans. In fact, 517-318-4105 in some situations, we also dave.armstrong@greenstonefcs.com provided members with letters of understanding that both they and GreenStone signed acknowledging their individual circumstances and summarizing

Partners — Summer 2015

Summer 2015 â&#x20AC;&#x201D; Partners

GROW

AND

UP COMING By Jennifer Vincent Kiel

There are moments in life, not always pleasant, that provide direction, even if it is not glaringly obvious at the time. In 2002, John Boynton was studying food marketing at Western Michigan University and was five classes away from graduating when his dad fell ill. “I quit school because my dad had bladder cancer and couldn’t plant corn,” says John, who is happy to add that his dad is now cancer free.

It wasn’t a tough decision for John, who had grown up a farmer’s son and always liked working on the farm. His dad, Tom, worked for his father-in-law, Roger Stamp, raising 45,000 head of hogs annually in the outdoors. “From the time I was little, I was working on the farm,” he says. “I’d watch gates, help castrate, clean and bed barns.” When John’s friends were taking summer treks to beaches and far-away places, he was on the farm in southwest Lower Michigan’s Vandalia. “I liked bailing hay and straw. I thought the escalator was neat,” he adds. John never went back for his last five classes and doesn’t really know what he would have done with a food marketing degree. “I was on the verge of doing an internship, but I never did, and I never got a clear direction,” he says. Maybe it was meant to be. John, 36, is proud to call himself a farmer and part of the farm family. Coming home from college he worked on his grandfather’s hog operation, which now was confined and raising 25,000 hogs annually. They were also growing 2,200 acres of corn. John ran the sow unit making sure they were bred. He also looked over the farrowing house, as well as outside jobs that included combining, hauling manure and feed. A nice distraction

There’s five years between them, but friends brought John and Heather (Kulp) together. She was finishing up her last year of college, getting her bachelor’s degree in business administration with a major in management and a minor in accounting. “We met in passing at a New Year’s Eve party and I said ‘hi,’ she looked at me and walked away,” John recalls with a chuckle.

➡ Left: John and Heather Boynton on their farm with their young son, Dane.

Partners — Summer 2015

Straight Talk With John Boynton

When you were eight, what did you want to be when you grew up? “A pig farmer – no doubt about it.”

When did you first realize that you wanted to farm for a living? “ When I came home from Western Michigan University at age 23.” Who do you look up to; who is your mentor? “I look to my dad for advice and I look up to my grandpa a lot. Also our next door neighbor, Bill White – I drive by and pay attention to what they are doing.”

What is the biggest challenge for young, beginning or small farmers today? “ Acquiring land. You can’t farm without dirt. And, getting a start with enough capital.”

What advice do you have for young, beginning or small farmers starting out? “ Save your money.”

Fortunately, he got a second chance and in 2007, they were married. Heather comes from a smaller-scale, farm family. “My dad was a factory worker, my mom a nurse. Farming was a second job,” she says. “We had daily chores and raised corn and soybeans. We also had cows and with 4-H, we had a little bit of everything… pigs, cows, horses, you name it, we tried it.” “My father would come home from work in town and start his job as a farmer,” Heather recalls. “Pulling an all-nighter was not uncommon for him, and he definitely taught me how to be a hard worker. John and I look up to my parents as well. We learned teamwork from them. My mother plows and my dad follows behind her in the planter. When John and I rented our first field, I was out picking rocks as John ran the tractor and pulled trees and plowed.” Heather was an office manager for an Elkhart, Indiana company, until resigning this spring to help on the farm and care for their one-year-old son, Dane. “We make a great team because John is adventurous and I am more conservative,” Heather says. John adds, “Heather keeps me grounded.” Wanting more

Buying or even leasing land is the biggest obstacle to breaking out on your own, John says. “I wanted to do something to make more money and to be my own boss. I started looking around for fields others were not bothering with.” His first piece of rented ground was a 12-acre field with trees, grass and poor drainage. “I rented it in the summer of 2008, took the trees out and chisel plowed,” he explains. “Next spring I planted.” Still, the goal was to own a farmstead of their own.

Summer 2015 — Partners

farm. “I had met John eight years earlier after being introduced by a business associate,” Paturalski says. “I’ve been doing this (job) for close to 30 years – I get a read on people. I could tell John was someone with good character, not afraid to work hard and had a lot of excitement and enthusiasm. He knows a lot about farming and raising hogs. I didn’t have to be concerned about his integrity.” Paturalski helped John and Heather finance a “fixer-upper.” They bought a farm in Dowagiac that GreenStone had taken back through a collection action using the Farm Service Agency’s 50/50 young farmer loan program. It included 80 acres (70 tillable), a 1,000 square-foot ranch home, four hog buildings and a hip roof barn. “Without Duane, none of this would have happened,” John says. “I tried to work with local banks and that was going nowhere. Duane knew just what to do, how to fill out the paperwork and really made it easy for us. He is always looking out for us in making sure that we are not over-extended. He really does have our best interests at heart.” With the paperwork finalized, John went to work remodeling and has two of the hog barns in operation, contract finishing about 1,500 head for Rolling Meadow LLC, owned by Andy, Bill and John White of Jones. More to do

John is not known for standing still for too long. “He’s always on the lookout for a new enterprise,” Paturalski says. “He’s looking for what he can do next.” He started with a Mack truck and a junky steel grain trailer, but John has been slowing building JJB Transport LLC.

“Our first year, we had saved enough money to not have to take out an operating loan,” he says. “We paid for everything in cash and, with the markets being high, we sold the crop for a tremendous price.”

Jerry Keesler of JK Enterprises has been hauling our pigs since I was knee high,” John says. “When they were looking for some help, I pulled a trailer for him for a while. He then sold me a trailer, and I got another truck and another livestock trailer.”

Duane Paturalski, a financial services officer out of GreenStone’s Berrien Springs office, says John approached him about wanting to start his own

GreenStone has assisted with financing the purchases that now includes two grain trailers, three semis and two livestock trailers.

and putting The farm uses crop insurance to help mitigate risk, but John will tell you he in a sow operation with had it easier when he worked for other people. “You don’t have the stress, but I possibly some wouldn’t give this up. I just love owning finishing,” the land.” ■ John says. “Another option would ➡ RIGHT: John started JJB Transport, LLC to diversify be to buy his operation. feeder pigs. Ultimately, the dream would be to own our own sows and have a farrowto-finish operation.”

“But, we’ve about had our fill on the trucking end—we are farmers,” John says. “The other stuff helps pay the bills and keeps us busy, but I don’t have ambitions to be a large trucker.” The farm has added another 40 acres south of Cassopolis and also offers custom combining and spraying. So what’s next? “We’re looking at a few different things, including renovating

The crop markets have not been too kind the last couple of years and that has tightened margins. “We hit some good markets early on, but with marginal lands, we would have never made it today. We have our hog manure and that gives us an advantage fertilizer-wise. The goal is to have a full circle operation where you grow crops to feed the hogs, who produce manure that goes back to the ground.”

Where Are They Now... How has your business changed since 2007?

Paul Arkema, Country Dairy Summer 2007

“We have hired key managers to add capacity to what could be accomplished with existing staff. These roles included a crop manager and food safety and training manager. Some very good market years enabled an aggressive approach to investment back into the business. After buying a neighbor’s production facility nearby in 2007, we expanded to include housing for 60 more milking head in our first compost bedded barn. We added five calf and heifer barns, providing greater animal comfort and allowing our staff to be out of the elements and focusing on the health of the animals. In 2010, a school milk packaging line for plastic half pints was scaled up to meet the demand from a large Western Michigan school system with a desire to connect the dots directly from farm to school. New equipment to handle this small container was purchased and installed. At the end of the first year, more than 10,000 gallons of milk went into this innovative and kid-friendly package. We also added on to the Farm Store to include a pizza shop, which uses our own cheese and provides another

DID YOU KNOW? – Michigan ranks 13 in pork production within the United States. – An average 275 pound pig produces about 16 pound of cured bacon and 30 pound of cured ham. (www.pork.org)

menu option to strengthen sales throughout the year. With increasing pressure on Farm Store seating during the summer, a pavilion was added with outdoor seating next to the pasture for the more than 15,000 guests who visit the farm each year.” What future plans do you have for your operation? “In addition to the ongoing intentionality any business must focus on in today’s competitive environment, we are considering what pros and cons exist in consolidating our milking operations into one location. We are also beginning to consider what transition to the next generation might look like, even though our kids’ ages range from late elementary to college.” What advice do you have for other young farmers out there? “Take and make time for your family, church and community involvement. Surround yourself with an exceptional and hardworking group of team-minded people, supply partners and consultants. Listen to the feedback of this group, including the previous generation when you’re blessed to have them involved, to be welladvised when making decisions. Remain ever vigilant on quality and key details.” ■ Partners — Summer 2015

Overhead… It Might Just Be Good for You And Your Business By Barb Dartt, DVM, MS

OVERHEAD. ADMINISTRATION. BUREAUCRACY. PAPERWORK. RED TAPE. ALL NEGATIVE REFERENCES FOR THE INFRASTRUCTURE REQUIRED BY AN EFFICIENT, WELL-MANAGED BUSINESS. AS AN INDUSTRY, AGRICULTURE HAS TENDED TOWARD LIGHT INVESTMENT IN “INFRASTRUCTURE”. WE VALUE TANGIBLE RESULTS, WORK THAT INCLUDES GETTING DIRTY, AND INFORMALITY WITHIN OUR BUSINESSES.

Over the last 3-5 years, however, I have observed a growing respect for infrastructure investment. More than half of my clients have expanded or built an office. They believe that having a place to gather as a business team is important to success. Nearly all producers I interact with have invested in overhead in the form of technology—GPS, yield monitors, feed management systems, automated heat detection, unmanned aerial vehicles or others. The data generated by these technologies requires time, software and savvy to utilize effectively. Investing in talent by spending time developing orientation, onboarding and training programs is another growing area of infrastructure development. I would like to suggest an additional, and underutilized, way to invest in talent AND infrastructure. Hire an administrative assistant.

Summer 2015 — Partners

“ Jim, the sole owner of a livestock and crop business, was looking to free up some of his time to concentrate on business management, including reviewing financial performance and building landlord relationships. He also had three teenagers and wanted to give himself the flexibility to make their volleyball and football games. Jim began to look for a farm manager—a “righthand man” that could answer employee questions, direct the team and pinch-hit for him. Jim knew that his current farm operations were not quite big enough for both of them – but he was looking to grow and was willing to invest. Six months of searching produced only a few candidates, none of whom were a fit. On a trip to visit family, Jim toured his cousin Ed’s manufacturing plant. There he met Shannon—Ed’s “righthand man.” Except Shannon was an executive assistant (and a woman… but that’s beside the point), not a farm manager.

oday’s tighter margins can make T investment in what appear to be nonrevenue producing areas difficult to justify. However, an assistant—one with the right experience and attitude—can save you time and money immediately.

”

Shannon had worked for Ed a little over three years. She started out at 20 hours per week and is now working about 35. Shannon had two previous jobs—one as a part-time office assistant in a very large business and one as the part-time bookkeeper of a slightly larger business. Shannon is pleasant, efficient, systematic and treats the business like she owns it. She has taken the administrative burden from Ed and allowed him to focus on highvalue decisions. Ed says that he sleeps better, knowing his business is being cared for by someone besides himself. And, he has found additional flexibility in his schedule to both manage his business and spend time with family. Jim’s new assistant, Deana, has been on board for 7 months now. Her learning curve was steep—and she is still on it. But her ability to get work done quickly and accurately is amazing. And her attention to detail and engagement in the business have allowed Jim to sleep better at night.

Today’s tighter margins can make investment in what appear to be non-revenue producing areas difficult to justify. However, an assistant—one with the right experience and attitude—can save you time and money immediately. I have found this kind of talent to be readily available, even in small towns and rural settings. One common worry is an assistant’s ability to maintain confidentiality. This skill can be screened for in the interview process and emphasized during Here’s what Shannon does: orientation. The right candidate will have experience with and be very - Basic bookkeeping, payroll and coordination sensitive to the confidentiality required within their role. with the CPA for quarterly results; Tighter margins, more risk and challenges in finding employees appear to be - Scheduling appointments with advisors and the norm for livestock and crop enterprises over the next few years. At the vendors; same time, growth opportunities may come available as other businesses are challenged. Investing in infrastructure—or the systems and processes that - Conference registrations and travel provide the foundation of your business—might not be intuitive. But investing arrangements; in an assistant could reduce the risk to your business and make your job - Some human resources compliance work easier. And that is overhead that is well worth the investment! ■ including personnel files and I9 forms; - Benefits administration for Ed’s 15 full-time employees;

ABOUT THE AUTHOR

Barb is a consultant with the Family Business Consulting Group, working with families and management teams to help them keep their business healthy and the people happy. Barb can be reached at 269-382-0539 or dartt@thefbcg.com

- Coordinates with the operations managers on production record-keeping, reminding them of deadlines and missing data; - Office management, including greeting visitors, keeping up with the mail, supply ordering and making sure team birthdays are celebrated;

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

- Bird-dogs the quarterly newsletter with Ed’s daughter and does a nice job updating Facebook; and - Helps filter out what is lower priority, and generally frees Ed up to manage his business.

Partners — Summer 2015

Market Outlook

By Bob Utterback

I EXPECT THE MOVEMENT OF THE GRAIN MARKETS FROM JULY TO OCTOBER TO PRIMARY FOCUS ON SUPPLY. NOW THAT THE JUNE 30 ACREAGE REPORT IS BEHIND US, THERE WILL BE A FIXED ACRES NUMBER TO BASE FUTURE ASSUMPTIONS ON. THEN DEDUCT THE AMOUNT OF PREVENTIVE PLANTINGS DUE TO THE EXCESSIVE SPRING MOISTURE. BY THIS TIME, THE MARKET SHOULD HAVE A VERY GOOD HANDLE ON HOW MANY ACRES OF CORN AND SOYBEANS HAVE BEEN PLANTED. THIS LEAVES THE LAST BIG FUNDAMENTAL UNCERTAINTY—YIELD—TO IMPACT PRICE.

Summer 2015 — Partners

Once the corn and soybeans get high enough so we no longer see the wet spots, it will be difficult for the bulls to continue to hammer the market about poor yields. Essentially, the trade will have its opinion; but with limited confirmation until early August crop field days, we will have to wait until early harvest before some solid confirmation of yield trend develops. If history is any guide, we have to assume that yields will gradually decline from the current readings as we get into the heat of summer. I would not be surprised to see corn yields fall to 164 and soybean yields drop to 45-46 bushels per acre. This will tighten supplies but not lead to a basic fundamental shift in the supply/demand relationship that will ignite the market. At present, I suggest corn carryover may slip slightly below 1.7 and soybeans carryover will remain above 430 million. Both are adequate but not excessive. To get prices back to levels that assure good profits, I believe corn carryover will need to be below 750 million and soybean carryover below 280 million with the expectation that the stocks will continue to diminish as demand exceeds supply. So how do we get at least a 1 billion bushel loss in corn inventory and a 250 million loss in soybeans? First let’s get a handle on what I am talking about. If we assume yields at 165, we will need to first start off with less than 6 million corn acres in 2016 and 5.5 million less soybean acres. With the profit incentive limited in other commodities, I don’t see this level of acres remaining unplanted. We all know someone will farm that land. Bottom line: There is little to no chance of getting this big of a reduction if corn prices drift back to $4 and soybeans drop back to $9.50. The only way to get prices back to levels that producers would like would require a significant retraction in both corn and soybean acres that would likely only be seen if corn prices dropped to loan level and stayed there. So, I do not view this alternative for a path to higher values. Another path to higher prices would be overwhelming demand. The problem is the EPA leveled a blow at the corn and soybean producers this year by reducing the mandates. The big yearly growth rate in corn consumption by the alternative fuel industry [that producers have become accustomed to] has come to a halt! They will be able to hold what they already have, but the growth rate experienced over last 15 years is now over. Ethanol demand numbers will start looking like feed and industrial usage numbers--stable but with limited growth. The only sector of the demand growth that is expected is human consumption. There are rumors of a 2.5 to 3.5 percent yearly growth. I do not disagree with this number. The problem is one must also accept the potential increase in technological ability to produce crops both domestically and internationally. In my opinion, much of the increased global demand will be met by increased yield efficiency and some growth in acres in many parts of the world that have the land and need the hard currency for their economic growth. Still another path to higher prices is to artificially create demand through printing more money. We have been on this course of action since 2008. While the Federal Reserve is talking about raising interest rates to slow down the monetary flow, they have been unable to do this because the current U.S. economic conditions are growing but very fragile at best. Globally, the U.S. needs to continue to be the economic engine to pull other countries out of their economic weakness. This leads to even bigger issues as recently stated by the Office of Management and Budget. The U.S. economy is at the brink of economic uncertainty due to the growing federal deficit. Growing entitlements are swamping the government budget. Bottom line: We are pulling out more money that we are putting in. Anyone see what is happening in Greece? While many want a cheap money policy to continue, I believe its time has come and gone. The risk is growing that over the next 10

“

nother path to A higher prices would be overwhelming demand. The problem is the EPA leveled a blow at the corn and soybean producers this year by reducing the mandates.

”

years interest rates will increase to historical levels, taxes will also go up and services will go down. None of these factors would be good for agriculture prices. This implies the only practical path to higher prices lies in supply loss due to weather events that, at this time, are beyond our ability to predict with any accuracy. Granted, some global leaders believe global warming is a real problem. It would lead to rising sea levels, major dislocation of population, droughts and eventual military conflict over natural resources. However, my bias lies with the scientists that believe we are moving into a cooling phase because of reduced solar energy and a potential increase in volcanic activity. While we can actively debate both of these long-term weather concerns, the eventual outcome is the same. Great uncertainty with regard to supply is suggested for the future. To the producer that is properly positioned, this presents a major opportunity rather than something to be feared. I suggest this is a time period that will not exactly be welcomed by most producers. Profit margins will tighten and higher prices will only be seen when an unknown fundamental event [such as a major yield reduction event] hits a major producer such as China, South America or the USA. Otherwise the market will be range bound at values that will frustrate the producer. As we look 5 to 10 years out, with increasing global demand the potential exists for major price moves. Buying the fall lows and selling the summer highs will be an even more important part of future marketing plans. Sounds easy, but we all know the devil is in the details.

Partners — Summer 2015

CORN: Most of the bullish

uncertainty of the supply side should have been factored into the market by early July. As of writing this, I expect all old crop inventory will be moved before the July supply demand report. I would not encourage building more bins and storing the 2014 crop into the 2015 season. Sell the expected 2015 crop; sell the December corn as close to $4.30 as possible. Try to avoid any cash sales of new crop off the combine and focus on early December sales when basis improves. Long-term, if the July bounce is not sold, it could very well be spring of 2016 before a solid pricing opportunity is seen for the 2015 crop. SOYBEANS: The wet spring and reduction of planted acres helped to put a firmer base in the soybean complex. However, stocks are still going to increase for 2015. Focus on selling any remaining old crop soybeans before the July supply demand report. Also focus on selling new crop above the $10.50 November soybean price. Unless one can effectively talk soybean carryover below 250, they really cannot justify storing a lot of soybeans forward. My bias would be to store corn for the carry rather than soybeans. WHEAT: Harvest is about over and there should be some stability in prices. With the big carrying incentive, hedges should now be in the December or March 2016 contract to capture the carry. As to expectation of any price recovery, it will heavily depend on what happens to corn. I

Summer 2015 — Partners

do not expect any significant price recovery until November or December, and even then it will depend on production problems in the world. Otherwise a stagnate range bound situation is in store for wheat--just enough economic incentive to store for carry, but not high enough to justify any type of hedge activity until closer to 2016. CATTLE: While the grains have been in a tail spin since the 2012 highs, the cattle complex has experienced some outstanding pricing performance. We simply do not have the domestic breeding stocks that we have had in the past. With lighter marketing numbers, we have seen weight explode to record numbers which has helped to keep total tonnage up. However, as with all markets, the best cure for high prices is high prices. Now that pasture conditions are starting to stabilize and feed stuffs are cheap, we will start the drive towards more numbers. For now, high prices are a luxury that cattle producers should fully enjoy. The focus should be on feeder cattle buyers buying on corrections because of the expectation of good demand as fall nears. As for selling fat cattle, any significant rally back to the 158 level should be aggressively sold. HOG: Last year was a wild ride for the hog complex as the trade reacted to all the uncertainty about piglet losses. Now that it appears farrowing losses are under control and numbers are back up, the ability to breakout to the upside

is now limited. The rally in fat hogs from March through early summer is seasonally expected. One must now be prepared for seasonal weakness into October. Be fully protected against downside risk from mid-July

to late October sooner rather than later. Get ready to buy feed needs; focus on a pre-harvest low, before the September supply demand report. ■

“

reat uncertainty with G regard to supply is suggested for the future. To the producer that is properly positioned, this presents a major opportunity rather than something to be feared.

”

ABOUT THE AUTHOR

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

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

ROAD SAFETY ACCORDING TO THE MICHIGAN STATE POLICE DEPARTMENT, BETWEEN 150 AND 210 TRAFFIC COLLISIONS INVOLVING FARM EQUIPMENT OCCUR EACH YEAR, CAUSING NUMEROUS INJURIES AND FATALITIES. The same can be said for the state of Wisconsin. From 2005 – 2012, there were nearly 1,400 collisions involving farm machinery, according the state Department of Transportation. Like these states, farm equipment on any public road can be dangerous; that’s why farmers keep these cautionary measures in mind to help ensure the road is safe for everyone! • A Slow Moving Vehicle (SMV) emblem should be mounted to all tractors, combines and implements transported on public roads. • Towed equipment is to be properly secured with a locking hitch pin and safety chain. • When approaching turns or rounding curves, slow to an appropriate speed for the particular vehicle. • Avoid white lights on the rear of a tractor when driving on public roads. If the vehicle does not have a rear red light, have an escort vehicle follow within 50 feet.

Regardless which driver’s seat you are in, there are precautions you can take to help avoid accidents. Other motorists should remember these things as well! • Immediately slow down when you first see farm equipment ahead of you on the road; usually these are traveling less than 25 miles per hour. For a car traveling at 55 mph, it takes only seven seconds to crash into a tractor that is 400 feet away. • Most tractor operators will be aware of your presence and try to accommodate, if possible, as traffic begins to back up. Be patient and wait for an opportunity to safely pass farm equipment! • Drive defensively when approaching on-coming farm equipment. Other motorists may pull out suddenly to pass the tractor or combine and enter your lane. ■ Source: http://msue.anr.msu.edu/, http://nasdonline.org/

• While traveling on public roads, always use flashing amber warning lights. • Choose a route that avoids roads known to be busy, or select alternate times to travel when traffic is slower. • Never travel left of the center of the road after dark, during poor visibility or when approaching the top of a hill or a curve. • Continuously be aware if traffic is backing up behind you, and consider how to let other motorists pass. Pulling over to the shoulder when it is safe to do so is one option to help avoid an accident. • Use turn signals or proper hand signals to communicate your intentions to other drivers on the road.

Be social! Follow GreenStone online to stay current on the latest news and resources.

Partners — Summer 2015

The Faces of Farming By Carla Wardin “Why do they need an organization to promote farming?” a friend asked. “A lot of people don’t have any connection to farms,” I said. “They don’t have a positive view of it.” “What? That’s impossible,” she said. “What do they eat?!” Not everyone feels that way. As a result, 80 industries came together to form the U.S. Farmers and Ranchers Alliance (USFRA). The organization’s purpose is to promote agriculture, and one of their ways of doing this is to introduce real farmers to the public. This fall, I was honored to be named one of the five Faces of Farming and Ranching. We represent different industries from across the country— Erin Brenneman, pig farmer from Iowa; Thomas Titus, also a pig farmer, from Illinois; Jay Hill, crop and beef rancher from New Mexico; and Darrell Glaser, turkey farmer from Texas. My husband Kris and I are dairy farmers in St. Johns, Michigan. We weren’t always farmers, though. After graduating from Michigan State University, we worked in marketing for different corporations and lived in three states. My parents started talking about retiring, and Kris suggested we buy their farm. He also grew up on a dairy farm, which helped! So eight years ago we quit our jobs, moved from Connecticut back home to Michigan, and bought our centennial dairy farm. I’m now the sixth generation on our farm. We milk 400 cows and grow corn, alfalfa, and pasture for feed. We’re also raising three boys— twins Ty and Cole, who are 8 years old, and Max, 4 years old. Through the Faces of Farming and Ranching program, I’ve loved having the opportunity to connect with so many people and participating in the national dialogue about food production.

Summer 2015 — Partners

First, there have been many opportunities to do this online. I’ve written my blog, Truth or Dairy, for four years, and the USFRA likes to promote farmer-written articles through their media channels. They have publicized my articles on how there are not antibiotics in milk, the amount of people and professionals on the farm, and a virtual tour of the dairy. Not only do these pieces get a lot of exposure, but also generate questions and begin engaging conversations about food production and the industry. They’ve also hosted tweetchats to encourage real-time dialogue about farming practices, and consumers and farmers are both very active on the USFRA’s Facebook page. Second, the agricultural media has done a great job reaching out to consumers. I’ve been interviewed on multiple radio shows (like RFD Radio Network, Brownfield Ag, PA Farm County Radio, etc.). The hosts are genuinely interested in helping consumers learn more about farming. The ag-related publications are also enthusiastic about the position I am in and have interviewed me or asked that I write articles about what we’re trying to accomplish as one of the Faces of Farming and Ranching. Although I’ve enjoyed all of it, my favorite part of the position has been speaking to people on a personal level. I had the honor of presenting my farm at the American Food Technology & Innovation Summit, which had attendees from around the world. The follow-up conversations the rest of the time made the experience even more meaningful. The people there loved talking about food, the industry, and farming, and I was so happy to share that with them. All my speaking engagements have given me this opportunity—whether it’s to people active in agriculture like at Farm Bureau’s Voice of Agriculture, or to people who are new to farming, like at most of the conferences. Since so few people have a connection to agriculture, I like being a person they can turn to when they have questions. I regularly get texts, emails, and calls—and I welcome all of them! Even if it might not be my area of expertise, I always know someone within the industry who can help answer their question. I’m not doing anything different than any other farmer who talks about work, shares with the public, and reaches out to the community. I just feel fortunate that I have this opportunity to promote farming and all its positive aspects to the rest of the world. After all, like my friend said… we’re all interested in eating. ■

ABOUT THE AUTHOR

Carla Wardin and her husband Kris are the owners of Evergreen Dairy. Before returning to the farm, Carla got her MA from Michigan State University in English literature, taught at Bradley University and Northern Illinois University, and worked in marketing for Caterpillar and TechSmith Corporation. She’s the author of two books. You can follow what goes on at their farm at truthordairy.blogspot.com or Facebook/truthordairy.

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

CONNECT

NEWS: GREENSTONE HONORS VETERANS AT WASHINGTON, D.C. EVENT GreenStone and the Farm Credit Council recently honored our nation’s veterans with the Farm Credit Salute to Farmer Veterans event last month in Washington, D.C., which showcased military veteran producers, and their contributions to agriculture. Attendees included members of Congress, key Capitol Hill decision makers, media, farmer veterans and Farm Credit representatives. ➡ TOP: Senator Pat Roberts addresses farmer veterans on June 2 in Washington, D.C. RIGHT: The event featured farmer veteran products from across the country.

GreenStone Employees Help Plant Thousands of Trees in Downtown Detroit Once again, GreenStone demonstrated its commitment to nontraditional, urban agriculture through a partnership with Hantz Farms in Detroit. The second annual Hantz Farms community day was held in late spring; beyond the volunteer driven neighborhood renovation,

the day included live entertainment, a cookout lunch and heavy equipment demonstrations. GreenStone volunteers traveled to the city to help plant 5,000 mixedhardwood trees, spread mulch and picked up litter to continue the transformation from vacant lots into beautiful woodlands for the enjoyment of area residents. ■

“Forty percent of the U.S. military comes from rural communities,” said Dave Armstrong, GreenStone President and CEO. “As a strong supporter of rural areas, GreenStone is committed to supporting veterans in their pursuit of opportunities in the agricultural industry.” Representing Michigan, Brent Spencer is a U.S. Air Force Veteran and GreenStone vice president of commercial lending; he is also a farmer and GreenStone customer. “This event allowed farmer veterans to meet with members of Congress and discuss the challenges and opportunities they face daily,” said Spencer. “As a military veteran who grew up in a rural community, a career in agriculture was a natural fit. I’m glad to be part of GreenStone’s effort to support

Michigan Wineries Now Have Their Own Industry Benchmarking Program GreenStone has entered a partnership with North Coast Ag Advisors and Farm Credit East to launch the Michigan Winery & Vineyard Benchmark Program for Michigan winery and vineyard owners and managers. This program is designed to help owners and managers better understand their

hardworking military veterans who are pursing agriculture endeavors.” The Salute to Farmer Veterans event was hosted by U.S. House Ag Committee Chairman K, Michael Conaway (R-TX-11) and Ranking Member Collin C. Peterson (D-MN-7), and featured food and products produced by veterans, many who are also Farm Credit customers. ■

competitive position in the marketplace, provide insight into industry trends and assess the financial implications of their growing, winemaking and marketing strategies, decisions and practices. For more details and qualification information, visit bit.ly/ MIWineBenchProgram. ■

Alma Office Move Reminder As a reminder, GreenStone’s Alma branch moved into a new building last month and is now located at 2942 West Monroe Road, Alma, Michigan. We look forward to serving customers at the new location! ■

Partners — Summer 2015

My Access GreenStone’s online customer system now offers new features to help you stay up-to-date with your account! Now when you login to My Access, you will find new options for alerts, bills and statements, file exchange, and more.

FARM CREDIT 100: FRESH PERSPECTIVES SEARCH GreenStone, as part of the Farm Credit System, will be celebrating a century of partnership and financial support with farmers and our rural communities in 2016.

As we get ready to launch a year of recognition and honor to our members and supporters, Farm Credit will conduct a national Farm Credit 100 Fresh Perspectives search to identify 100 people who are positively changing the face and future of rural America.

• Bills and Statements are now more conveniently located under My Documents. As an added benefit, this new location gives you access to more than a year’s worth of bills and statements. • Go Paperless by signing up for electronic bills and statements. When you enroll, you can set up an alert to receive email and text message notifications to know the instant your bill or statement is available. • File Exchange can now securely transfer up to 10 files between you and multiple GreenStone staff members. • My Alerts has even more options available for you to select the notifications that are most important to you regarding your loans and transactions. Login to your account or enroll today to start taking advantage of these features; simply select “My Access” under Account Login at www.greenstonefcs.com! ■ 18

Summer 2015 — Partners

To begin this search, an open nomination period will run this year, starting in mid-July and continuing through Dec. 18. Eligibility for the Farm Credit 100 Fresh Perspectives includes anyone who is contributing to an enriched future for agriculture and rural communities; including farmers, agribusinesses, cooperative leaders, volunteers and more!

In recognition of their positive impact, the top 100 honorees will be awarded a commemorative item. The top 10 honorees—one from each of the 10 nomination categories—will also receive a $10,000 cash prize to help further their community and agricultural industry contributions; these 10 individuals will also be invited to Washington, D.C. to participate in a special Farm Credit recognition event in 2016. While GreenStone will be seeking local nominations, individuals are encouraged to directly submit nominations through the Farm Credit 100 Fresh Perspective online form. Simply visit www.farmcredit100.com for more information and to submit a nomination! ■

AGDIRECT REBRANDING You may notice a few changes when you see AgDirect at your local dealership or in the newspapers. As part of their rebranding campaign, GreenStone’s partner equipment financing program, AgDirect, has introduced an all-new colorful look and a bold, simple theme: “Built for Agriculture.” Also included in the new campaign are the use of images and testimonials directly from AgDirect customers; and soon, two of GreenStone’s customers will appear in these materials!

Selected from a broad search J&J Acres and P4 Farms, both from Schoolcraft, Michigan, recently shared their perspective with AgDirect. Visit www.agdirect.com to view the new design, and keep an eye out for their new, local materials! Follow GreenStone on Facebook and Twitter for an insider look at their photoshoots! ■

➡ TOP: Jennifer Gottschalk poses with her mother, Pamla, and daughter, Payton.

FROM INTERN TO EMPLOYEE FROM STARTING AS A GREENSTONE INTERN TO BECOMING A FULL-TIME EMPLOYEE, THESE TWO GREENSTONE STAFF TAKE US BEHIND THE SCENE TO LEARN HOW THEIR INTERNSHIP PREPARED THEM FOR THEIR CAREER.

Emily Dreves Appraiser – Associate Mt. Pleasant, Michigan What is your favorite memory from your internship?

Nick Trierweiler Client Support Analyst - Associate East Lansing, Michigan What is your favorite memory from your internship? My favorite memory from my internship was when I attended a CDW sponsored event at Cooley Law School Stadium with several members of our IT department along with other CDW customers in the Lansing area. It was a great opportunity to meet some of the people behind one of the largest technology solution companies in the US, not to mention meeting several people who worked in local IT departments. A great networking event overall, and I really got to learn about how other IT departments get their work done. What piece of advice would you give to the current interns? This is the perfect time in your life to seize great opportunities. Capitalize on every one you can and set yourself up for an excellent future.

I guess I don’t really have one specific memory that jumps out at me. However, assisting in organizing and developing some of the training courses that GreenStone provides to our employees was one of my favorite parts of my internship. It amazed me as to how many pieces and parts, not to mention the time and patience, it takes to create a successful course. During this portion of my internship, I was able to work with some of GreenStone’s leaders, and interact with a number of the employees that I now work with on a regular basis. What piece of advice would you give to the current interns? Diversify yourself. Internships are your opportunity to become exposed to different aspects of the company and the industry, so be open minded and challenge yourself. Try something different; you never know where you’ll find your niche. What do you enjoy doing outside of the office? My husband and I enjoy helping out on the family farm in Buckley as much as possible; we also enjoy camping, golfing, and spending time with our families.

What do you enjoy doing outside of the office? I try to get outside whatever opportunity I can and spend time with my friends and family. Whether it’s kayaking, golfing, or just going for a run, it’s always more fun in good company!

Partners — Summer 2015

Mark Your Calendar... JULY

AUGUST Michigan Livestock Expo (15-21)

MSU Pavilion, East Lansing, MI

4-H Youth Dairy Days and Michigan Dairy Expo (20-24)

Farmers Market at the Capitol

Michigan Farm Bureau Young Farmer Golf Scramble

Farmers Market at the Capitol

GreenStone Offices Closed In honor of Labor Day

Great Lakes Logging & Heavy Equipment Expo (10-12) U.P. State Fairgrounds, Escanaba, MI

Farmers Market at the Capitol State Capitol Building, Lansing, MI

State Capitol Building, Lansing, MI

Centennial Acres Golf Course, Sunfield, MI

World Dairy Expo (9/29-10/3) Alliant Energy Center, Madison, WI

Pause for Applause... GreenStone FCS, Thank you for your support of the State FFA Convention! Through your support, our FFA members had an extraordinary experience at the 87th Michigan FFA State Convention.

”

GreenStone FCS,

”

...Candid Comments Summer 2015 — Partners

Service Anniversaries Help GreenStone congratulate and thank these staff who are celebrating an employment milestone. From five to 35, the years represent the dedication and service all employees provide our members. July:

Thank you for your gift to the Michigan State University College of Agriculture and Natural Resources designated to the FFA State Convention Fund. It will help students develop leadership skills through contests, scholarships and awards. Thanks again for all your support of the Michigan FFA! —-Michigan FFA State Officer Team

Saginaw Valley Research and Extension Center Field Day

SEPTEMBER

Frankenmuth, MI

—The Ovid-Elsie FFA Chapter

“

Wisconsin State Fair Park, West Allis, WI

State Capitol Building, Lansing, MI

“

Wisconsin State Fair (6-16)

Wisconsin Farm Technology Days (25-27) Statz Brothers, Inc., Sun Prairie, WI

South Haven, MI

MSU Pavilion, East Lansing, MI

National Blueberry Festival (6-9)

Jeannette Gschwind (15)

Karen Messer (20)

Charles Neuenfeldt (10)

Bruce-Douglas Harry (10)

James Miller (5)

Sarah Morack (10) Yvonne Fleis (5) August:

September: Lori Leppek (20) Jeane Weiler (15)

Leo Pasch (35)

Diana Terry (10)

Brenda Sanderson (20)

Sarah Hegerfeld (10)

Erica Norton (15)

Jessica Hurd (5)

SUMMER INTERNS GREENSTONE HAS WELCOMED SIX STUDENT INTERNS FOR THE SUMMER, PROVIDING EACH WITH AN OPPORTUNITY TO SHARPEN THEIR SKILLS IN THEIR RESPECTIVE CAREER FIELD. Currently in its sixth year, GreenStone’s internship program is designed to provide college students with real-world experience to coincide with their education. Students take part in the same hiring process as our full-time employees, applying online and going through the complete evaluation process. The intern selection is based on experience and aptitude, with an emphasis on performance in the classroom, extracurricular activities, and involvement in the community. Each intern will work approximately 14 weeks this summer before returning to school for the fall semester. In addition to real-world experience in the agriculture industry, GreenStone internships are paid positions with the company. For GreenStone, this is also a tremendous way to build our employee talent pool and expose students to the career opportunities available in agriculture. Over the years, the association has been able to retain approximately 50 percent of the interns as full-time employees. The summer 2015 class of interns includes: ISAAC ANGUIANO Title: Corporate Credit Intern Branch: East Lansing Hometown: Area of Chicago, IL College: Michigan State University Major: Finance Ag Background: C.A.M.P. Scholar with Migrant Student Services at Michigan State University, worked as a supervisor/driver with his family’s company named EuroBrick, Inc. Internship Goal: I hope to learn the practices of corporate credit and lending amounts, such as qualifying and approval of loans.

ABBY CARPENTER Title: Credit/Crop Insurance Intern Branch: Adrian Hometown: Adrian, MI College: Michigan State University Major: Agri-business Management Minor: Crop and Soil Sciences Ag Background: 1,200 acre family farm, operate a fall agritourism business with pumpkins, a corn maze and hayrides. Internship Goal: I hope to learn about the credit process and all the behind the scene actions that take place here at GreenStone.

➡ TOP: 2015 GreenStone summer interns: (back) Jennifer Spink and Matthew Platte, (middle) Becca Hacker and Isaac Anguiano, (front) Henry Smits and Abby Carpenter.

REBECCA (BECCA) HACKER Title: Credit Intern Branch: East Lansing Hometown: Cass City, MI College: Central Michigan University Major: Real Estate Development and Finance Ag Background: Family dairy farm Internship Goal: I hope to become more knowledgeable about, and gain experience within, the farm credit industry, become more familiar with loan and appraisal progress and learn, learn, learn!

HENRY SMITS Title: Credit Intern Branch: Grand Rapids Hometown: Hamilton, MI College: Grand Valley State University Major: Accounting Ag Background: Experience working on a dairy farm, custom farming crew, equipment dealership and family hobby farm. Internship Goal: I hope to develop experience and exposure to farm credit, as well as lean about how credit systems work and are developed.

MATTHEW PLATTE Title: Credit Intern Branch: East Lasing Hometown: Westphalia, MI College: Michigan State University Major: Agri-business Management Ag Background: Family Dairy Farm Internship Goal: I hope to gain a better understanding of ag finance and working in a corporate setting.

JENNIFER SPINK Title: Marketing Intern Branch: East Lansing Hometown: Pleasant Lake, MI College: Northwood University Major: Marketing Minor: Economics Ag Background: 200 acre irrigated row crop farm, train/ show AQHA Horses, owner of GoShowMidwest.com Internship Goal: I hope to gain corporate marketing experience while combining my love for marketing with my love for agriculture. ■

Partners — Summer 2015

Great Lakes Leadership Academy:

CHINA EXPERIENCE By Melissa Humphrey, Regional Vice President of Sales and Customer Relations

OVER THE COURSE OF THE PAST 18 MONTHS I TOOK PART IN THE GREAT LAKES LEADERSHIP ACADEMY THROUGH MICHIGAN STATE UNIVERSITY. THE PROGRAM FOCUSES ON PROMOTING POSITIVE CHANGE, ECONOMIC VITALITY, AND RESOURCE CONSERVATION TO ENHANCE THE QUALITY OF LIFE IN MICHIGAN BY ENCOURAGING LEADERSHIP FOR THE COMMON GOOD.

Summer 2015 â&#x20AC;&#x201D; Partners

Since January of 2014, 23 participants gathered for several days each month to strengthen their leadership skills and develop dynamic networks to promote action on critical challenges facing Michigan. The programâ&#x20AC;&#x2122;s capstone is a two-week international experience. It is an opportunity for participants to explore issues from a global perspective, examine leadership in the context of differing political, cultural and social challenges, view resource management in an international economy, and engage in a unique networking opportunity. This year, the group traveled to China. We experienced the country through interactions with residents, professors, students and community leaders involved in agriculture, natural resources, economic development, and health care. We traveled through urban and rural areas engaging in cultural, academic, and civic activities and learned how local practitioners in industries ranging from agricultural development to mental health care professionals work together across sectorial, religious and socio-economic differences. The trip began in Beijing with a visit to a dairy farm and a poultry farm. We also met with a representative from the U.S. Grains Council. At the poultry farm, we visited the chicken barns and the processing and packaging facility, which was all housed in one place. Additionally, there was an anaerobic digester and natural gas converter, which was the sole source of gas to nearby villages. The dairy farm had around 1,400 cows and approximately 144 employees. The parlor was a parallel style parlor

representative of anything you would see in the United States where the cows averaged around 60 to 70 pounds of milk per day. When we met with the U.S. Grains Council representative, he talked to us about production in China. As a whole, China has a lot more tillable acres than the United States; however their production is significantly less. The average corn production would be approximately 75 bushels to the acre. While in Beijing, we also saw a variety of tourist attractions including The Great Wall of China, the Forbidden City and the Temple of Heaven. The stop at the Great Wall of China was very fascinating. The Great Wall is one of the seven modern wonders of the world. The wall is 8,000 km long, which is equivalent to the length of a round trip from the west coast to the east coast of the United States. From Beijing we moved to Chengdu, where we visited the West China School of Medicine talking about mental health successes and challenges in China. A few participants from our group also presented on U.S. practices as it relates to this topic. We also saw the work done by the Hope Recovery and Rehabilitation Center, which

helps patients to pursue a meaningful and purposeful life in spite of the disabilities caused by mental illness. The Chengdu Research Base of Giant Panda Breeding provided us with insight into their research on preservation of endangered wildlife, integrating scientific research and breeding of giant pandas, conservation education, tourism education and panda cultural events. While at the facility, we saw a variety of pandas; the Giant Panda is considered the national treasure of China, which made our visit even more interesting. We concluded the Chengdu portion of our trip by visiting a tea farm where we each harvested our own tea from the bushes. Once we had harvested enough, we were able to participate in the processing of our crop and finally enjoyed hot tea from our harvest. The final stop on the trip was Shanghai, where we focused on food safety and food distribution. We spent one day meeting with the Shanghai Municipal Agricultural Commission. Shanghai is a significant port city, and much of Chinaâ&#x20AC;&#x2122;s food imports come through the area. We learned 50 percent of the food consumption

in Shanghai is imported, including 90 percent of vegetables, 40 percent of fruit, 75 percent of the meat and 70 percent of fishery. Based on these numbers, it may not be surprising to know that less than 10 percent of the population in Shanghai is farmers. We also saw the Shanghai International Food Distribution Center, where many of the imports are temporarily housed. The distribution center is 125 acres in total size and used to distribute products around the city, China and the rest of the world. Overall, the trip to China was a once in a lifetime experience to see firsthand a very fast-paced, technology driven, highly government-influenced eastern country. It definitely expanded our perspectives and personally gave me a greater understanding of agriculture as it relates to global supply and demand. A huge thank you must also go to the sponsors who support this program and make the international experience possible, which includes GreenStone. If you are personally interested in learning more about the Great Lakes Leadership Academy, take time to visit their website at www.glla.msu.edu. â&#x2013;

Partners â&#x20AC;&#x201D; Summer 2015

SCHOLARSHIP RECIPIENTS– $40,000 TO INCOMING FRESHMEN THIS YEAR, GREENSTONE UNVEILED A NEW SCHOLARSHIP PROGRAM THAT WOULD AWARD UP TO $40,000 TO INCOMING FRESHMEN PURSUING A DEGREE IN AN AGRICULTURE-RELATED FIELD. The cooperative named 23 well-deserving graduating high school seniors as the recipients of the dollars. Those attending an associate style course were awarded $1,000 each, while four-year programs earned $2,000. “As a leader in providing financial products and services to those in the agricultural and rural communities, GreenStone is proud to assist these students in their education process,” said Dave Armstrong, CEO and President of GreenStone. “This award speaks volumes to their past accomplishments, good citizenship, and passion to continue their growth and development as the next generation of leaders in the agricultural industry.”

Summer 2015 — Partners

Shelby Berens; Holland, MI • Daughter of Bev and Jeff Berens • Majoring in: Dairy management at Michigan State University • People would be interested to know: I have been a 4-H member for fourteen years. • Dream job: Any profession involving dairy cattle and that includes utilizing the skills learned from completing the dairy management program. Elena Boxey; Allenton, MI • Daughter of Mark and Nancy Boxey • Majoring in: Animal science at Michigan State University • People would be interested to know: I have raised three puppies to be Leader Dogs for the Blind. • Dream job: A successful career in the agricultural industry dealing with food production and distribution issues as it relates to poverty and underserved areas.

Daniel Brown II; Springport, MI • Son of Joy and Dan Brown • Majoring in: Agriculture, food and natural resources education at Michigan State University • People would be interested to know: I’m involved in FFA, but do not like country music. • Dream job: Chief meteorologist at the United States Department of Agriculture. Nolan Feldpausch; St. Johns, MI • Son of Jill and Glen Feldpausch • Majoring in: Animal science at Cornell University • People would be interested to know: I love to wakeboard! • Dream job: Managing a dairy farm.

Josephine Forbush; Byron, MI • Daughter of Tate and Mina Forbush • Majoring in: Agriculture food and natural resources education at Michigan State University • People would be interested to know: I am left handed and collect key chains. • Dream job: Teaching agriculture and being an FFA Advisor. Emily Harke; Adrian, MI • Daughter of William and Dawn Harke • Majoring in: Animal science at Iowa State University • People would be interested to know: My friends call me ‘goat girl’ because I have a love for goats! • Dream job: Animal nutritionist. Taylor Hawks; Millington, MI • Daughter of Jeff and Kory Hawks • Majoring in: Preveterinary at Michigan State University • People would be interested to know: I have sang since I was 3 years old. • Dream job: Veterinarian. Emily Kittendorf; Milan, MI • Daughter of Kevin and Nancy Kittendorf • Majoring in: Animal science at Michigan State University • People would be interested to know: I play the bass clarinet. • Dream job: Inspecting farms for the USDA. Samantha Ludlam; Hopkins, MI • Daughter of Michael and Heather Ludlam • Majoring in: Agriculture, food and natural resource education at Michigan State University • People would be interested to know: I will serve as a FFA state officer this year. • Dream job: Teaching agriscience education in a high school setting.

Troy Markley; Byron, MI • Son of Randy and Denise Markley • Majoring in: Agricultural industries at Michigan State University • People would be interested to know: I’m the president of my FFA chapter. • Dream job: FBI agent. Emma Maust; Bay Port, MI • Daughter of Brent and Emily Maust • Majoring in: Agriculture with a focus on animal science and agribusiness at Dort College • People would be interested to know: I received the 2015 Michigan FFA State Star award in Agribusiness. • Dream job: Working alongside my dad on our family-owned cash crop, dry hay and swine farm. Evelyn Okkema; Blanchard, MI • Daughter of Ramona and Tjerk Okkema • Majoring in: Dairy science at Michigan State University • People would be interested to know: I have attended two years of diesel technology training. • Dream job: To become a dairy producer on a farm that is focused on hosting tours for the local community; so that all groups can spend time learning about agriculture and where their food comes from. Kyle Rasch; Conklin, MI • Son of Chuck and Sue Rasch • Majoring in: Business at Grand Rapids Community College • People would be interested to know: I am on the cover of a book. • Dream job: To run my family’s apple farm. Jared Sanderson; Sandusky, MI • Son of Michael and Patricia Sanderson • Majoring in: Animal science at Michigan State University • People would be interested to know: I was diagnosed a Type 1 diabetic at seventeen. • Dream job: Veterinarian that works with production animals.

Brett Schmidt; Standish, MI • Son of Allen and Kisha Schmidt • Majoring in: Pre-agriculture at Saginaw Valley State University, and then planning to transfer to Michigan State Unversity for crop and soil sciences. • People would be interested to know: I like tearing things apart to see how they work. • Dream job: Managing a 5,000 acre farm. Luke Schwass; Scottville, MI • Son of Ron and Connie Schwass • Majoring in: Crop and soil sciences at Michigan State University • People would be interested to know: I hope to be the sixth generation farmer in my family. • Dream job: Owning and operating the family farm. Jadelyn Stewart; Vermontville, MI • Daughter of Kim and Kevin Stewart • Majoring in: Animal sciences (pre-vet) at Northwest Missouri State University • People would be interested to know: I have a pet turtle named Franklin. • Dream job: Large animal veterinarian. Jake TeBos; Allendale, MI • Son of Dan and Jill TeBos • Majoring in Agriculture industries at Michigan State University • People would be interested to know: I work in our family greenhouse, and own steers. • Dream job: Owning my own farm. Elizabeth Venema; Deford, MI • Daughter of Martin and Lisa Venema • Majoring in: Animal science at Michigan State University • People would be interested to know: I am very active in many community groups and rarely have spare time. • Dream job: Helping farmers and staying connected to the agriculture industry.

Abigail Walkowe; Manchester, MI • Daughter of Patrick and Rhonda Walkowe • Majoring in: Agribusiness management at Michigan State University • People would be interested to know: I am very involved in 4-H and show livestock. • Dream job: Livestock nutritionist. Paige Wilson; Webberville, MI • Daughter of Michael and Janet Wilson • Majoring in: Agriculture, food and natural resource education and animal science at Michigan State University • People would be interested to know: I have served as the Region IV FFA Vice President. • Dream job: Either a large animal veterinarian or agriscience teacher. Kaila Wussow; Cecil, WI • Daughter of Ron and Nicolle Wussow • Majoring in: Dairy science at the University of Wisconsin - River Falls • People would be interested to know: I’m the fifth generation raised on my family’s dairy farm. • Dream job: Working for an agricultural publication, writing articles to promote the dairy industry and the farms within it. Claire Zahm; Marne, MI • Daughter of Herb and Christine Zahm • Majoring in: Agribussines at Kansas State University • People would be interested to know: I am a livestock judge on the Coopersville FFA team. • Dream job: Showing cattle. ■

Partners — Summer 2015

“

PAC PROGRESS: SINCE THE SPRING ISSUE OF PARTNERS, GREENSTONE HAS BEEN ACTIVE IN THE DYNAMIC GOVERNMENT ARENA COMMUNICATING THE STRENGTH AND RESILIENCY OF RURAL AMERICA. April marked the second budgeting process for the MI GreenStone PAC, following the 2015 MI GreenStone PAC Patronage Campaign. Forty-six elected government officials were identified by the Board of Directors to be recipients of MI GreenStone PAC funds with input from Kelley Cawthorne, GreenStone’s lobbying consultant. Delivery of the funds has begun and will be completed by year-end. In addition to communicating about the Farm Credit System and agriculture, the beneficiaries are made aware the funds came from over 500 farmer cooperative members who appreciate the work being done to create further opportunities for Michigan agriculture to succeed. In Wisconsin, the collaboration of Farm Credit associations continues to work together through the Cooperative Network. Recently, there has been a renewed and strong effort by the Wisconsin Farm Credit associations to

Summer 2015 — Partners

ecently, there has been R a renewed and strong effort by the Wisconsin Farm Credit associations to actively address the positive attributes of the System in the face of bank lobby groups attacking the Farm Credit role in rural and agricultural lending.

actively address the positive attributes of the System in the face of bank lobby groups attacking the Farm Credit role in rural and agricultural lending. Also, Farm Credit leaders gathered in late March 2015 to exchange ideas and inform the Wisconsin state legislators and federal legislative staff about the strength and service of the Farm Credit System in Wisconsin. Dallas Tonsager, the newly appointed director of the Farm Credit Administration was also welcomed by the group at this meeting. Director Tonsager made remarks about the state of the federal regulator. The national Farm Credit PAC has been active in disbursing funds within GreenStone’s territory. Members, directors and management have been involved in meeting U.S. Senators and Representatives. All meetings have been mutually beneficial as the Farm Credit story is shared and the activities

”

of Washington, D.C. legislators and regulators are relayed. Your support of elected officials is acknowledged, commended, and greatly appreciated by recipients of PAC funds. Continued support is critical and will increase as populations shift. As champions of the diverse agriculture industry, we all must continue to work closely to ensure agriculture is not forgotten as an essential component to a thriving economy. GreenStone continues to play an important role in communicating to policy makers as part of the voice of agriculture through its PAC tools. ■

FARM ISSUES ON THE AGENDA IN THE U.S. HOUSE By Representative John Moolenaar

AGRICULTURE IS THE BACKBONE OF MANY COMMUNITIES THROUGHOUT MICHIGAN’S FOURTH CONGRESSIONAL DISTRICT. THERE ARE OVER 10,000 FARMS AND 15,000 FARM OPERATORS, GROWING AND RAISING PURE MICHIGAN PRODUCTS FOR SALE ACROSS THE COUNTRY AND AROUND THE WORLD. It is an honor to represent these hardworking men and women of Michigan, and to serve on the Agriculture Committee in the U.S. House of Representatives. Here is an update on what the House is working on with respect to agriculture. Market Access Gaining access to new markets is critical for continued growth of Michigan agriculture. Our farmers grow some of the best products in the world in the Fourth District and these products are already winning in the marketplace. The market value of agriculture products made and sold in the Fourth District is $1.7 billion, so continuing market access is critical. I support legislation that would allow the U.S. to gain access to new markets through agreements with other countries. Of course, these agreements need oversight and that is why the legislation includes requirements for transparency and accountability for the president’s negotiators. The legislation requires the president to publish any new deal online for 60 days before he signs it, allowing for the public to debate it. Most importantly, the legislation requires Congress to have the final say on whether or not the U.S. will agree to any deals that the president makes. The complete text of the legislation that is being debated in Congress is online.

Dietary Guidelines I signed a letter with 70 other House members calling on the Secretary of Agriculture and the Secretary of Health and Human Services to base the upcoming Dietary Guidelines on sound science. The guidelines should not be used to push an environmental agenda. Taxes Finally, in February, the House has passed the Small Business Tax Relief Act. This permanent policy, including Section 179, will help Michigan farmers and small business owners correctly depreciate their assets and fairly value their assets on their tax returns.

Waters of the U.S.

Conclusion

Another issue I frequently hear about from farmers is the Waters of the U.S. rule that was recently finalized by the Environmental Protection Agency (EPA).

Agriculture accounts for one-third of economic output in Michigan. I will continue to support Michigan farmers by ensuring that federal regulations do not impede farm operations, and support policies that will let them sell more products to more customers. ■

The House of Representatives recently passed H.R. 1732, calling on the EPA to withdraw the rule. The bill received 261 votes in the House, with bipartisan support from 24 House Democrats. I have been vehemently opposed to the rule because it is excessive and would regulate ponds and mud puddles on farmers’ fields. The rule would extend to floodplains and make it harder for farmers to build on their own land. The EPA must withdraw the rule and listen to the concerns of farm operators and local communities.

Representative John Moolenaar (R-Midland), represents Michigan’s Fourth Congressional District which is made up of Clare, Clinton, Gladwin, Gratiot, Isabella, Mecosta, Midland, Missaukee, Ogemaw, Osceola, Roscommon, Shiawassee, and Wexford counties, and parts of Montcalm and Saginaw counties.

Partners — Summer 2015

Directors’ Perspective:

Getting Involved GREENSTONE’S CORE FOUR VALUES EMPHASIZE OUR FOCUS ON “GETTING INVOLVED” AS WELL AS “DOING THE RIGHT THING.” IN 2014, GREENSTONE DONATED MORE THAN $800,000 AND OFFERED MORE THAN 3,000 HOURS OF STAFF TIME TO ORGANIZATIONS AND LOCAL COMMUNITIES.

As we review GreenStone’s involvement in routine as well as new opportunities, three GreenStone directors share their perspective on why your board of directors believe it is important for GreenStone to be a leader in this area, and continue to give back through financial support and volunteer time for education, advocacy and many other purposes.

GreenStone staff and leadership are made up of a wide range of Bruce Lewis individuals whose time and talent help to move agriculture forward. As part of this commitment to agriculture, man hours and dollars are spent on community events and sponsorships. They include supporting youth activities such as FFA and 4-H, community involvement, and assisting various other organizations to spread the word about our industry. GreenStone staff can be found at various events throughout Michigan and Wisconsin clerking animal sales,

Summer 2015 — Partners

working in fair booths, sponsoring and giving of their time for farm tours, supporting food baskets for the needy, and promoting agriculture. The board of directors are made up of people who give of their time to support, educate, and advocate for agriculture; we also feel personal community involvement is a must. The community involvement of this organization is an extension of the board’s commitment to agriculture, which goes far beyond lending money. As Robert Louis Stevenson once said, “Don’t judge each day by the harvest you reap but by the seeds you plant.”

FPO

I will focus on just one area GreenStone gets involved in: county fairs. I believe this is Gil Ritter the most important outreach to youth and both rural and urban communities. We can start a bond with youth and their families that can last a lifetime. At the same time, we can show the community that we like to do the right thing for people. The county fair traditionally was a place for farmers to show off their best work. Now, I see non-traditional farm people who participate for many reasons. The fair has become a place where rural and urban people can meet and admire the work of youth and adults alike. This is a great way to narrow the gap that has naturally occurred between agriculture and the rest of society. Understanding modern agriculture and the family farmers behind it is vital to our society supporting it. The fair is a good forum for agricultural understanding to occur.

As a director, I fully support and continue to encourage the leadership Scott Roggenbuck role GreenStone has taken in community development and volunteerism. Everything from large projects like the Hantz Woodlands effort to transform blighted neighborhoods in Detroit, to staff members who volunteer their time with refugee kids, and employees and directors who coach school sports. I have been honored to help plant trees in Detroit, and I feel humbled in the presence of my peers who do so much for their communities. â&#x2013; Keep an eye on our social media pages and Open Fields blog to learn more about GreenStone directors and the associationâ&#x20AC;&#x2122;s community involvement!

Partners â&#x20AC;&#x201D; Summer 2015

GreenStone Story:

Customer Privacy AS A GREENSTONE CUSTOMER, THERE ARE FIVE THINGS OF WHICH YOU CAN ABSOLUTELY BE SURE. 1. TO OFFER YOU PERSONALIZED SERVICE. 2. IMMEDIATE RESPONSES TO ALL YOUR REQUESTS. 3. HONEST, FAIR AND IMPARTIAL TREATMENT. 4. CONFIDENTIAL TREATMENT OF ALL INFORMATION. 5. TO PROVIDE YOU ACCURATE INFORMATION AND ADVICE. THIS LIST OF FIVE IS KNOWN AS OUR CUSTOMER BILL OF RIGHTS. WE KNOW ONE OF THE MOST IMPORTANT PROMISES WE MAKE TO YOU WITH OUR BILL OF RIGHTS CONCERNS YOUR PRIVACY.

Member privacy is extremely important to us, and we want you to know we hold your financial and personal information in strict confidence. As a financial institution, some personal information is recorded, such as your social security number, income, account balances and credit history. This information is necessary for us to accurately deliver quality financial products and services to your unique needs.

Winter 2015 — Partners

Though we keep your information confidential, some customers, who have recently conducted business with us, have received solicitations in the mail to re-finance their GreenStone loan with another lender. Naturally, this immediately raises the questions: “How did these third parties get their information? Did GreenStone sell its customer list or other information.” NO! We want you to know that is absolutely not the case.

“

irst and foremost, F GreenStone never, for any reason, sells customer names, addresses, mailing lists or any other customer information.

”

GreenStone values our customer relationships, and we want you to feel comfortable and knowledgeable with how we handle your loans and information. First and foremost, GreenStone never, for any reason, sells customer names, addresses, mailing lists or any other customer information. We strictly and faithfully observe federal regulations that protect your rights to confidentiality. The companies sending these unsolicited mailings referenced above get the information by combing public records— primarily register of deeds recordings—to develop their mass mailing lists.

Public Record

Because some of your information is required by law to be publically filed, we want to make sure you are aware. All financial institutions, including GreenStone, are obligated to record certain information as a matter of public record when a mortgage loan is written. These public records typically identify the borrower, the lender, and the original loan amount. In addition, public property records can also include:

lender to refinance your GreenStone mortgage, the lender who sent it did not receive any information from GreenStone about you or your loan.

• Assessed property value

Our commitment to your right of privacy is part of our Customer Bill of Rights as is our commitment to customer satisfaction. As a member of this organization, the protection of your privacy and the security of your personal information are vital to our continued ability to serve your ongoing credit needs. GreenStone’s security and privacy information are detailed on the Member Benefits section of our website, www.greenstonefcs.com/memberbenefits. We encourage you to familiarize yourself with our policies and reach out to your local GreenStone office if you have questions.

• Property square footage and the number of rooms in a dwelling

Rest assured, we protect you and your information! ■

• Ownership history • Property maps • Record of sales listings • Historical tax assessments

You can be 100 percent confident that if you receive a solicitation from another

i OUR CUSTOMER BILL OF RIGHTS As a GreenStone customer you have the right to receive: • Personalized service • Immediate response to all requests • Honest, fair, and impartial treatment • Confidential treatment of all information • Accurate information and advice

Partners — Summer 2015

LIVE

Picking up the Hammer ROGER AND CHERYL RUPPAL BUILT THEIR DREAM HOME IN 2005 ON 40 ACRES NEAR DAVISBURG, MICHIGAN. THE HOME IS NESTLED ON LOUANNA LAKE, A 10-ACRE BODY OF WATER THAT PROVIDES SCENIC VIEWS AND RECREATIONAL BOATING OPPORTUNITIES FOR THE COUPLE AND THEIR FAMILY.

Born and raised in a rural community in Michigan’s thumb, Roger has been a lifelong hunter and outdoor enthusiast. Cheryl, his wife of 29 years, was born a city girl in St. Claire Shores. “I’ve always been a country boy,” said Roger, who worked for the Michigan Treasury Department, retiring after 28 years of service. “When I met my wife, she was very much the opposite,” he said. When they moved into their first home, Cheryl insisted on a burglar alarm. “It was a big transition at first,” Roger admitted. Growing up in the country, the concept of a security system seemed strange to him, but he agreed. Now, after years of rural living, Cheryl has grown fond of the country life; however, their current home still features an alarm system. “But she wouldn’t go back to the city now,” Roger said.

Spring 2015 Summer 2015——Partners Partners

When the couple was searching for property to eventually build a home, they immediately knew that this particular parcel in Davisburg was perfect. “Cheryl always wanted to live on a little lake,” said Roger. “And she always said I looked for hunting ground before a building site,” he joked. As it turns out, the land offered everything they wanted – hunting area, a lake, and a great home building site. This home is the fourth the couple has built together. After retiring from the Treasury Department, Roger started a limited liability corporation with some friends who were skilled contractors. Although he worked on the finance side of the business, Roger learned a lot about general contracting. That experience gave him the knowledge and confidence to be his own general contractor when building their dream home. James Cole is the couple’s financial services officer at GreenStone. He has known the Ruppals for a number of years and has enjoyed working with them to finance their land and home. “Roger and Cheryl are great to work with,” said James. “Roger is very knowledgeable working with general contractors. His home build is a great example of an individual taking the

. ..the land offered “everything they wanted – hunting area, a lake, and a great home building site.

”

reins on a successful do-it-yourself (DIY) home construction project.” Construction financing and country living are a major part of GreenStone’s business portfolio. The flexible construction options are a key distinction for GreenStone in the marketplace. “The DIY option appeals to a lot of people,” said James. “One of the many advantages of working with GreenStone is the flexibility we offer in terms of serving as your own general contractor, hiring it out, or a hybrid of the two.” The Ruppals’ home has four bedrooms and includes a finished walkout basement. The basement includes a rec room with a big

screen TV, a space that Roger cites as one of his favorite places to spend time when at home. “That’s usually where you’ll find us,” he says. The interior also features cathedral ceilings and impressive views of the lake. The home’s exterior is made of brick, vinyl siding and cultured stone. In his years of building homes, Roger has worked with a lot of different banks. He noted how working with GreenStone stood out in his mind. “The entire process was so much simpler than anything I had ever been exposed to before,” said Roger. “GreenStone is a great organization to do business with!” ■

Partners — Summer 2015

Take your fitness routine to the next level:

GO SWIMMING! WITH THE WARMER WEATHER FINALLY HERE TO STAY, YOU MAY BE LOOKING FOR A WAY TO SHAKE YOUR FITNESS RUT AND TAKE YOUR EXERCISE TO THE OUTDOORS. ADDING WATER TO YOUR ROUTINE IS A GREAT WAY TO INCREASE STRENGTH, FLEXIBILITY AND CARDIOVASCULAR HEALTH WHILE REMAINING COOL. HOWEVER, THERE CAN BE SOME HEALTH EFFECTS THAT YOU MAY WANT TO KEEP IN MIND! At the Lake An obvious choice is swimming or treading water. If you are spending the day on the boat, pick a safe area to anchor, and do some swimming. Remember not to get caught up on the idea that exercise has to be a consistent 30 minutes. Taking ten minutes a few times throughout the day will add up. Another option is to partake in activities such as tubing, kayaking or water-skiing, which are great workouts for the shoulders, core and back. Including your kids can be a fun way to make sure the entire family is involved and remains active. While at the lake, a few precautions can help prevent swimmingrelated illnesses. A common skin rash that can occur is swimmer’s itch. This allergic reaction is caused by parasites that typically live in waterfowl. Fortunately, humans are not a suitable host and the rash usually clears up in a few days. To help with the process, take a bath containing baking soda, Epsom salts or colloidal oatmeal. You can also help prevent swimmer’s itch by applying sunscreen prior to entering the water, avoid areas where there is evidence of ducks and geese, do not wade in marshy areas, and make sure to towel dry off immediately after swimming.

KIDS WATER SAFETY Whether it is a trip to the lake or a dip in the pool, you can ensure that swimming is as safe as it is fun by following a few basic safety tips. • Always have your children wear a life jacket approved by the U.S. Coast Guards while on boats, around open bodies of water, or when participating in water sports. • Actively supervise children in and around open bodies of water, giving them your undivided attention. • Take an initiative to learn CPR, this will give you tremendous peace of mind and prepare you if an accident were to occur. • Educate your kids about swimming safety by enrolling them in swimming lessons, teach them how to tread water and float, and ensure they stay close to the shore. It is also important that they realize swimming in open water is not the same as swimming in a pool; children need to be aware of uneven surfaces, currents, undertow and changing weather. ■ Source: www.webmd.com, www.safekids.org

At the Pool The community pool can provide fun and socially interactive exercise options. If organized classes are not offered in your area, create your own! Make up a routine that includes intervals of lunges, squats, leg lifts and finish working the lower body with flutter kicks while holding on to the edge of the pool. Next, submerge to the neck and do chest presses, reverse flies, bicep curls and arm circles to work the upper body. The pool is an excellent place to shake up your routine and offers low-impact, total body workouts.

Spring 2015 Summer 2015——Partners Partners

Beyond the need to wear sunscreen, the water can also affect your hair and skin quality. The chlorine can eat away at the natural lubricant that protects the hair, which creates split ends, dulls shine and causes discoloration. To avoid this, wet your hair before diving into the pool, wear a swimming cap and/or apply a layer of conditioner to wet hair. Chlorine can also affect your skin, leaving it dry and itchy. It is important to rinse the whole body after swimming to remove any chlorine residue and using fragrance-free lotion can help heal cracked skin. ■

KEEP HOME SAFE WHILE YOUR AWAY Whether you decide to take a long adventure, or simply spend a few days at your lake house, it is important to make sure your home and personal belongings remain safe while you are away. Consider these tips to help ensure everything remains exactly how you left it! Keeping your trip a secret Be sure to refrain from posting your vacation details on Facebook, Twitter or other social media outlets. It can be difficult to keep track of who is reading what, so it is better to be on the safe side and not post your itinerary, and only alert a few close friends or family members of your trip. You can always recap your fun with photo memories for all to see once you return home! Put a hold your mail and stop newspaper delivery A large pile of mail on your front doorstep, or envelopes pouring out

Keep up with landscaping Depending on how long you plan to be away, it may be a good idea to ask a family member or hire a lawn service to maintain appearances around your home. If your home is clearly uninhabited, you are at a higher risk of burglary.

of your mailbox is a clear sign that no one is home. If a nearby friend or family member is not available to pick up your mail or newspaper, putting a “stop” to these deliveries would be beneficial.

House sitter

Lights on timers Leaving your lights on throughout your entire vacation does not make much sense and you will return to a costly electric bill. Instead, purchase a light switch timer that can turn your lights on and off automatically according to a programmed schedule. Further options include installing motion detector lights outside and purchasing a TV simulator light, which makes it appear as though the TV is on at night! Unplug To protect your home from an electrical fire or power surge, unplug all unnecessary appliances. This includes the bigger items such as TVs along with toaster, coffee maker and other small appliances.

The best way to make sure your house is safe while you are on vacation is to have someone you trust living in it. Consider asking a family member or friend to temporarily move in while you are away to water the plants, pick up your mail and newspaper and take care of indoor pets, if you have them. If there isn’t anyone available, there are services for house and/or pet sitting. It may be a more expensive option, but would cover all the bases. Trust a neighbor Instead of having a trusted friend or family member move into your home, consider asking a close neighbor to keep an eye and check in on your property. They could even pick up your mail and newspaper so you would not have to put a “stop” to the delivery! ■ Source: http://www.safesoundfamily.com

Grandma D’s Blueberry Buckle Instructions:

Ingredients: • ¾ cup sugar

1. Cream sugar and shortening together. Add the remaining main ingredients, except blueberries, and mix well.

• ¼ cup shortening • 1 egg • 2 cups flour • 2 teaspoons baking powder • ½ teaspoon salt • ½ cup milk • 1 pint fresh or thawed frozen blueberries Topping Ingredients: • ½ cup sugar

2. Carefully fold in blueberries and pour into greased 9” square pan. 3. Combine topping ingredients with a fork until a course crumb consistency. Sprinkle on top. 4. Bake at 375 degrees for 45 – 50 minutes, or until toothpick comes out clean.

• ¼ cup margarine or butter • ¹⁄³ cup flour • 1 teaspoon cinnamon • ½ cup chopped nuts (if desired) Provided by the Michigan Blueberry Growers Marketing from member grower DeGrandchamp Blueberry Farm

Commodity Cuisine...

Partners Partners——Summer Winter 2015

LEARN

BE ON THE LOOKOUT By Kelly L. Tobin, GreenStone Senior Tax Accountant/Product Manager OVER PAST TWO YEARS AT LEAST A DOZEN CUSTOMERS HAVE CONTACTED ME DIRECTLY ABOUT A PHONE CALL OR EMAIL THEY RECEIVED INFORMING THEM THEY OWE BACK INCOME TAXES AND MUST PAY IMMEDIATELY TO AVOID COURT OR OTHER ADVERSE ACTION BY THE IRS. THESE PHONE CALLS AND EMAILS ARE CRIMINAL SCAMS TRYING TO EXTORT MONEY FROM UNSUSPECTING INDIVIDUALS. The IRS will never make an initial contact using the telephone or email; their initial correspondence is always a letter. Furthermore, the IRS will never demand immediate payment over the phone or internet. Unfortunately, these criminals have absconded with millions of dollars from innocent individuals throughout the country even though nothing was owed to the IRS. To help you be more prepared, let’s review some of the scams con artists are currently using, though be aware the tricks are constantly changing and evolving. IRS Impersonation Telephone Scam This aggressive and sophisticated phone scam targeting taxpayers, including recent immigrants, has been making the rounds throughout the country. Callers claim to be employees of the IRS, but are not. These con artists sound convincing, and use fake names and bogus IRS identification badge numbers. They may know a lot about their targets, and they usually alter the caller ID to make it look like the IRS is calling. Victims are told they owe money to the IRS and it must be paid promptly through a pre-loaded debit card or wire transfer. If the victim refuses to cooperate, they are then threatened with arrest, deportation or suspension of a business or driver’s license.

Summer 2015 — Partners

In many cases, the caller becomes hostile and insulting. Sometimes, victims are told they have a refund to try to trick them into sharing private information. If the phone is not answered, the scammers often leave an “urgent” callback request. It is important to remember the IRS will never:

➊ Call to demand immediate payment, nor will the agency call about taxes owed without first having mailed you a bill;

➋ Demand that you pay taxes without giving you the opportunity to question or appeal the amount they say you owe;

➌ Require you to use a specific payment method for your taxes, such as a prepaid debit card;

❹ Ask for credit or debit card numbers over the phone; or

❺ Threaten to bring in local police or other law-enforcement groups to have you arrested for not paying. Individuals contacted by IRS impersonators demanding money should report the incident to Treasury Inspector General for Tax Administration (TIGTA) at 800-3664484 or at tigta.gov. The Federal Trade commission should also be contacted at FTC.gov and use the “FTC Complaint Assistant” to report the scam. Email Phishing Scam: “Update your IRS e-file” Con artists are also using an elaborate email phishing scam. The emails appear to be from the IRS and include a link to a bogus web site intended to mirror the official IRS web site. These emails contain the direction “you are to update your IRS e-file immediately.” The emails mention USA.gov and IRSgov (without a dot between “IRS” and “gov”). The official IRS web site is IRS.gov (with a dot). Pay close attention to the details, these emails are not from the IRS. Taxpayers who get these messages should not respond to the email nor click on the links. Instead, they should forward the scam emails to the IRS at phishing@irs.gov. For more information, visit the IRS’s Report Phishing web page at www.irs.gov/uac/ Report-Phishing.

Tax-related Identity Theft Since there is no end to the proliferation of identity theft, the public must be vigilant in all of their daily activities. Tax-related identity theft occurs when someone uses a stolen social security number to file a tax return claiming a fraudulent refund. During a recent staff meeting, all of GreenStone’s tax accountants acknowledged that identity theft is an ever increasing problem. In fact, identity theft has become such a problem that the IRS formed an Identity Theft Department about two years ago. IRS issues a special personal identification number (PIN) to known identity theft victims. The PIN is input on their tax return so the IRS knows the tax return is valid. To help protect yourself from becoming a victim of identity theft, follow these precautions: • Do not carry with you your Social Security card or any documents that include your Social Security number (SSN).

• Do not give a business your SSN just because they ask. Give it only when required. • Protect your financial information. • Check your credit report every 12 months. • Review your Social Security Administration earnings statement annually. • Secure personal information in your home. • Protect your personal computers by using firewalls and anti-spam/ virus software, updating security patches and changing passwords for internet accounts. • Do not give personal information over the phone, through the mail or on the internet unless you initiated the contact or you are sure you know who you are dealing with. ■

Tax Calendar... JULY

Non-farm employers file Form 941 for the second quarter to report social security, Medicare, and withholding. Form 5500 due for all employers that maintain an employee benefit plan such as a pension plan.

SEPTEMBER

Third quarter estimate is due for 2015 for individuals that pay estimated taxes. Corporations file a 2014 calendar year income tax return (Form 1120) if you requested an automatic 6-month extension. S Corporations file a 2014 calendar year income tax return (Form 1120) if you requested an automatic 6-month extension. Partnerships file a 2014 calendar year income tax return (Form 1065) if you requested an automatic 5-month extension. Corporations deposit the third installment of estimated income tax for 2015.

OCTOBER

Individuals file a 2014 income tax return (Form 1040) if you requested an automatic six month extension.

Partners — Summer 2015

ADDRESSING THE AGRICULTURE EFFICIENCY CYCLE IT IS TIME TO DRIVE DOWN PRODUCTION COST PER UNIT THROUGH HARD WORK AND FAVORABLE ECONOMIC CONDITIONS IN RECENT YEARS, CROP FARMERS ACROSS AMERICA’S HEARTLAND HAVE GENERALLY ENJOYED A PERIOD OF SIGNIFICANT FINANCIAL PROGRESS. HOWEVER, IN 2013, PRICES FOR KEY COMMODITIES SUCH AS CORN AND SOYBEANS, AS WELL AS OTHER KEY INDICATORS, BEGAN TO MODERATE. NET FARM INCOME IS PROJECTED TO FALL OVER THE NEXT DECADE. FARM BALANCE SHEETS, WHILE STRONG TODAY, ARE AT RISK OF WEAKENING. IS THIS THE START OF A “DOWN CYCLE” IN THE CROP PRODUCTION SECTOR THAT COULD LEAD TO A 1980S-TYPE FARM CRISIS? NOT NECESSARILY. PRODUCERS WHO SEE TODAY’S ENVIRONMENT AS AN “AGRICULTURE EFFICIENCY CYCLE”—AND FIND WAYS TO DRIVE DOWN COST PER UNIT OF PRODUCTION—CAN POSITION THEMSELVES FOR CONTINUED SUCCESS.

Summer 2015 — Partners

2014-2015: Lower crop and livestock receipts, higher cash expenses After the record $129 billion in 2013, the USDA projects aggregate nominal net farm income to decline 16.3 percent in 2014 and 31.8 percent in 2015, reaching a five-year low of $73.6 billion in 2015. Most of the decline in 2014 can be attributed to sharply lower crop receipts (down $20.3 billion) and much higher cash expenses (up $17.6 billion). In 2015, the culprit is much lower cash receipts for both livestock (down $10.1 billion) and crops (down $15.6 billion), while cash expenses increase only modestly (up $1.6 billion). After increasing $15.7 billion in 2014, due mainly to much higher feeder livestock and labor expenses, total farm production expenditures are projected to increase only $2.2 billion in 2015. Feeder livestock purchases are expected to still be a major contributor (up $3.5 billion) along with labor expenses (up $1.4 billion), but these are counterbalanced by sharp declines in petroleum, fuel, and oil (down $4.6 billion) and fertilizer (down $1.1 billion). Feed purchases also are expected to decline by $1.6 billion due to lower crop prices.

Beware of forecasts

BILLION 2009 $

$2,500

U.S. Farm Sector Balance Sheet (Billion Real 2009 $) and Debt-to-Asset Ratio 2015F; $2,737.9 2014F; $2,765.1

1985; 22.2

1980; $2,249.2

$2,000

$1,500

2002; $1,485.1 1960; $995.4

1980; $1,884.0

2014F; $2,471.7 15 2015F; $2,439.5

DEBT -TO-ASSET RATIO %

$3,000

ANNUALIZED GROWTH 2002-2013 Assets 5.7% Debt 2.6% Equity 6.1%

2015F; 10.9 10 2002; $1,265.22 One word of caution 2014F; 10.6 $1,000 regarding long-run baselines and forecasts in general: 1960; $867.2 5 It is almost certain that $500 1980; $365.2 reality will be far different 2015F; $298.3 1960; $128.1 2002; $219.9 than what is forecast. The 2014F; $293.4 baseline forecast merely 0 $0 represents what is expected 1960 1970 1980 1990 2000 2010 2015F to happen if everything ASSETS (LEFT AXIS) DEBT (LEFT AXIS) NET EQUITY (LEFT AXIS) DEBT ASSET RATIO (RIGHT AXIS) follows the prevailing trends and the forecast Source: USDA Economic Research Service (ERS), 1960-2015F (forecasted) assumptions over the projected time period. These baseline forecasts do not account for any shocks to the system such as weather events, economic exception of a few brief periods when a slight strong balance sheets give individual producers trends, technological change, political events, reversal in the long-term downward trend a window of opportunity to adjust to changing and so forth. They also do not account for occurred in response to a downturn in the market conditions, the ultimate solution in changes in producer behavior and practices general economy. times of tighter margins must involve bringing to operate more efficiently and potentially income and expenses in line. By comparison, during the 1980s farm crisis, improve net margins by reducing costs and/ the debt-to-asset ratio reached a 50-year Historically, the successful implementation of or increasing revenues. This may include major high of 22.2 percent in 1985. From the midthis solution must start with implementing changes to the mix of crops they produce. 1980s through 2014, the ratio showed steady a higher level of operational efficiency that Farm Balance Sheets improvement with the exception of a few brief drives down the cost per unit of production. If periods when a slight reversal in the long-term current price forecasts are correct, enhancing The greatest reason the coming decade is downward trend occurred in response to a gross receipts will be very difficult, but pricing different from the 1980s-1990s may be downturn in the general economy. Current opportunities will still present themselves. the overall financial health of the U.S. farm overall debt levels, measured in real dollars Adept marketing and risk management by economy—which entered 2015 in perhaps its (2009), are significantly lower than in the early producers will still have a substantive payoff in strongest financial condition in over 50 years. 1980s, and overall assets are higher. In addition, this economic environment. The U.S. farm sector debt-to-asset ratio, a and very positive for agriculture, interest rates measure of overall farm financial health (lower Market Risk Management Tools is better), reached an all-time low level of 10.6 today are dramatically lower than in the 1980s. Producers today have a greater array of percent in 2014 and is projected to increase Ag Efficiency/Cost Structure market risk management tools available and only slightly to 10.9 percent for 2015—still The current market conditions and resulting are much more adept at using these tools well below the values that prevailed in the long-run forecasts suggest we are in the when compared to the 1980s and 1990s. 1980s and 1990s. By comparison, during beginning of a down cycle in economic returns Commodity options were reintroduced on a the 1980s farm crisis, the debt-to-asset ratio primarily for crop production. Lower receipts pilot basis for corn and soybeans in 1984 and reached a 50-year high of 22.2 percent in and higher expenses have led to a decline in eventually became available on all commodity 1985. From the mid-1980s through 2014, the ratio showed steady improvement with the current and projected net farm income. While futures by the end of the 1990s.

Partners — Spring 2015

Taking the Bull by the Horns Producers are not able to control market forces, such as commodity prices, that affect their financial well-being. But they can control how they respond to those forces as they plan how to protect their income statements and balance sheets. Producers can take the following steps to adapt to today’s agriculture efficiency cycle: • Understand all of the primary factors that determine your cost per unit of production • Research and thoroughly evaluate those practices, techniques and technologies that have the potential to reduce the major cost of production categories. Adopt those that can have a major impact on your cost per unit of production • Take advantage of historically low interest rates by locking in fixed rates when appropriate Crop/Revenue Insurance The aggregate farm income statement presented by the USDA does not include crop/revenue insurance premiums, subsidies, and indemnities. In the past two Farm Bills, a greater emphasis of producer support has shifted to the crop insurance title programs and away from the traditional commodity title programs. In the 1980s and 1990s, the crop insurance program had much lower participation rates, revenue insurance only became available as a pilot program in 1994, and almost all government support came through the commodity title programs. By excluding crop/revenue insurance, the USDA aggregate income statement may understate the level of government support to producers when compared to previous decades.

Summer 2015 — Partners

• Use crop/revenue insurance and sound, prudent marketing strategies to protect and enhance the gross revenue side of the farm income statement Don’t let today’s market cycle keep you down. The forecasted decline in net farm income is not a given if producers take control of their income statements and their future through the prudent deployment of costreduction and risk management strategies. ■

ABOUT THE ARTICLE

The content herein was provided by Agribank. Agribank is one of the largest banks within the national Farm Credit System. Under the cooperative structure, Agribank is owned by the 17 associations within its district, including GreenStone.

CROP INSURANCE: CLAIMS APPRAISALS By Brandon Walters, Crop Insurance Specialist 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 LEFT ANTICIPATING YOUR YIELDS MAY FALL BELOW YOUR GUARANTEE. OBVIOUSLY THIS IS NOT THE SITUATION YOU WOULD PREFER TO BE IN, BUT THAT IS WHY YOU PURCHASED CROP INSURANCE! If you do find yourself in a claims situation, there are some important things to remember that can help the process go more smoothly. • Perils The vast majority of naturally-caused perils are included under multiple-peril crop insurance (MPCI) coverage. This includes, but is not limited to: adverse weather, failure of irrigation water supply, fire, insect damage or plant disease (unless you improperly or insufficiently applied pest or disease control measures) and wildlife damage. Those covered under Revenue Protection are also protected from a decline in market price. • Timeframe Insurance coverage generally begins at time of application or time of planting, whichever is later. The end of the insurance period is traditionally recognized as the earlier of: total destruction of the crop, final harvest of the crop, abandonment of the crop, or the end of the insurance period (which is Dec. 10 for soybeans and corn insured as grain).

• Insured’s Responsibilities For planted crops, the insured must notify the insurance company within 72 hours of the initial discovery of the damage or production loss, but no later than 15 days after the end of the insurance period, even if the crop has not yet been harvested. 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. • Appraisals If you are going to harvest your planted crop in any non-traditional manner, a crop appraisal needs to be completed; otherwise, you may lose out on a potential indemnity payment. The most common time an appraisal is needed is when you are going to chop corn that is insured as grain for silage. If you have a corn policy, any acreage that is not harvested traditionally as dry grain should be appraised. You should contact your agent at least a week or more in advance of when you are planning on harvesting to arrange for an adjuster to come out

and perform the appraisals while the crop is still in the field. In the event you harvest before an adjuster is able to perform appraisals, representative sample strips must be left in the fields for the adjusters to use for the appraisal. The strips must be at least 10 feet wide and run the entire length of the field. If you do not agree with the appraisal from the adjuster, do not sign them. Call your crop insurance specialist right away and another adjuster can perform a second appraisal. Throughout the whole claims adjustment process, if you ever feel uneasy or that something may not be right, contact your crop insurance specialist as soon as possible. Likewise, if there is any kind of problem with the adjuster working on your claim, your agent can generally get you someone different. Obviously, no one wants to have a claim; we can all agree that producing a bumper crop is much more enjoyable than receiving a large claims check. However, remembering these key points will help make the process go that much better when a claim is necessary. As always, if you have questions regarding the information provided here or any other crop insurance question, please contact your local GreenStone crop insurance specialist; they will help make the process as smooth and convenient as possible! ■

Partners — Summer 2015

CROP NEWS: HAIL INSURANCE

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. Below are some other important items of note regarding hail coverage.

• Most hail insurance covers other perils above and beyond hail damage. Beyond hail, many policies 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 all crops; even if the crop does not have a federal crop insurance option, it can generally be covered for hail. • A customer is able to carry a federal multiple-peril crop insurance (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 a farmer chose to cover their corn at $700 per acre, and the premium was 60 cents per $100 of coverage, the premium for their corn would be $4.20 per acre. • One benefit to hail insurance over MPCI is you can insure up to the total expected value of the crop, whereas MPCI is limited to 85 percent. • Hail coverage generally has many different endorsements available, including quality endorsements on crops intended for fresh market, canning reject endorsements, etc.

If you have not discussed how a hail policy works or what it covers with your crop insurance specialist, take time now to meet and learn what options are available for your crops under hail policies! ■ 2015 Fall Wheat and Forage Claims Nearly every producer has a personal story regarding hail damaging their crops. What used to be considered a fairly rare event historically speaking, seems like storms that are capable of producing hail are becoming far more common in our area of the country. 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.

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 to harvest, the acres must be appraised prior to destruction. ■ Organic Crops As a reminder, RMA now requires all insured organic certified producers to provide a copy of their organic crop plan and organic certificate to their agent before the acreage reporting date. ■ Important Date Reminder! Late fees will be charged on any unpaid premium on Oct. 1. Please make note of this important change as late fees cannot be waived. If you cannot pay your premium before the due date, please contact your Approved Insurance Provider (AIP) to make payment arrangements. Payment is due regardless of whether or not you have an outstanding claim. ■

Summer 2015 — Partners

Fresh Apple Reviews

LGM-Dairy Update

Remember, fresh apple policies can be signaled out for a fresh review at any time during the year, or at claims time. You will be asked for proof the apples were sold as fresh and for the price at which they were sold. It is required that 50 percent or more were sold as fresh, at a fresh price in at least one out of the last four years. Call your crop insurance specialist for more information regarding the documents to be submitted and the details needed on the documents. If you cannot prove fresh sales, RMA requires that your apples be changed to processing for the current crop year. ■

At the time of writing this, LGM-Dairy sales are currently suspended due to the funding being exhausted for the 2015 federal fiscal year. Unless money is moved from an existing program, October 2015 will be the next time LGM-Dairy coverage is available for purchase. ■

Forage Production If you think you may be facing a forage production loss, make sure to contact your specialist to file a claim. If you did not have forage insurance for the 2015 crop year and are interested for 2016, the sales close date is the same as wheat, Sept. 30. ■

Crop Insurance Alerts! Before You Chop! Like previous years, GreenStone will CROP INSU continue to send ALERT RANCE crop insurance alert postcards when we believe it is necessary to communicate any vital information that is important to you and your farm. When you see a red postcard in the mail, please pay attention to its message. Among other things, it may explain action you need to take in a timely manner. ■ www.gree nsto

nefcs.com

Crop Insurance Calendar...

Spring Acreage Reports Due & Processing Beans Final Plant Date

These devices are able to perform all the tasks of a desktop, but are light enough to be mobile. When compared to a tablet, they are more durable, have a better processing power price point and are equipped with a larger keyboard and screen.

• It is important to have a device that supports older applications. Tablets

Spring Premium Billing Date

Most tablets are extremely lightweight and easy to carry. They also work well for browsing the web, checking email, social media channels and utilizing cloud-based applications.

Wheat & Forage Production Sales Close Date

Purchasing a tablet would be right for you if:

End of Insurance Period (loss reporting deadline) for Peach & Blueberry

OCTOBER

15 25* 30 31

Laptop

• You are looking for a device that would be used for regularly creating content for work or school.

Forage & Fall Wheat Premiums Billing Date

SEPTEMBER

The amount of technology options available to consumers is ever changing, and it can be difficult to choose which type of device to purchase. When deciding between a laptop and a tablet, there are a few things to keep in mind!

• There is a need for faster processing or large amounts of storage.

AUGUST

LAPTOP VS. TABLET

Purchasing a laptop would be right for you if:

JULY

1 15

• Your main goal is to have a device most suitable for leisure activities, i.e. web browsing, Facebook, email.

Forage Underwriting Report Signature Due Date

• You are looking to take your entertainment mobile, such as music, eBooks or movies.

Wheat Final Plant Date

• You are interested in a device that starts up quickly, and is easy to use.

October LGM Sales Close Date

...Tech-tip

End of Insurance Period (loss reporting deadline) for Fall Crops Final Claim Reporting Date for Dry Beans

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

Partners — Summer 2015

3515 West Road East Lansing, MI 48823

Go ahead, we’ve got your back...

REAL DEAL REAL ESTATE FINANCING– When you are ready to grow your business, you need to work with a true lending partner. At GreenStone, we make purchasing real estate a smooth process, by offering flexible options that include: • Long-term fixed rates • One-time close • Quick appraisals That means no surprises or balloon payments down the road.

Contact a lending expert at one of our 36 offices today! 800-444-FARM