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PARTNERING PAYS IN MORE THAN A C E N T U R Y ONE WAY! Patronage & Conversions
Winter 2021
OF PROGRESS
COMMEMORATING FARM CREDIT Women in Ag
+ Crop News
+ Tax Calendar + Tech Tip
YBSF Feature
GUEST ARTICLE:
Avoiding the Identity Trap
MARKET OUTLOOK:
Recapping 2020
JENNIFER DOUGHERTY pg. 11
WINTER 21 11 YBSF Feature. Five years ago, Jennifer and Phil Dougherty were in their early 40s with four kids, and financially stable with two self-employed careers. Some might have called them crazy to venture off into the capital-intensive, start-up turkey business – they saw it as an opportunity.
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21 GreenStone Story. A record $105 million in patronage returns is coming to members in March, a record from a year of tremendous uncertainty and challenges. But that is just part of the story
27 Country Living Feature. Connie and Chad Hotchkiss loved their log-style home in Dundee, MI. But they always aspired to acquire the land that wrapped around their homestead.
35 Crop Insurance Feature. At Grabemeyer Farms in Dowagiac, MI, family embraces the history of the sixth-generation farm.
39 Tax Feature. Our tax and accounting services work even better together. Bundle them to save money and gain efficiency, because you have better things to do and more important places to be.
3 CEO Comments. President and CEO Dave Armstrong reflects on where we've been and looks ahead to where we are going. 5 Guest Column. Avoiding "The Identity Trap" takes planning when transitioning roles within a family business. 7 Market Outlook. This issue's update takes a final look back on the material economic events of last year, and also sets the stage for what is sure to be an interesting 2021. 23 Director's Perspective. David McConnachie takes a few minutes to share more about his farm and perspective as a returning board member.
30 Guest Column. Jordan Browne, Host of Michigan Out-of-Doors TV, discusses life after deer season. 31 How To Tackle Your Closet. Cleaning out your closet may seem like a daunting task, especially if it has been a few months (or years). 32 Warning Signs of Mental Illness in Kids. Mental health is vital to personal well-being, as it affects our thoughts, feelings, and actions. 41 Tech Tip– Password Management With the holiday just past, now is a great time to take control of your digital footprint and follow these steps to secure your online accounts.
25 Legislative Matters. Evaluating the year of 2020 will take years of reflection. How we react will make a big difference for our communities.
10 Agriculture Blog Brief 15 Grow Forward Grant 15 GreenStone Scholarships
26 PAC Progress. The United States has a long history of bipartisanship and today it is no different. Bipartisanship is essential to engagement and education prior to, and during, policy development.
16 Member News 17 Pause for Applause
Publisher’s Note: I look forward to this issue of Partners every year – the one when we announce Patronage Day (Patronage Week this year!) and the dollars being returned to our members. I have a pretty prime view to it all. I get to be in the middle of the whole program with my team planning the details for member communications and customer celebrations – it’s not every day you get to plan a celebration of more than a hundred million dollars going BACK in the hands of our members. I (normally) visit branches on patronage “day” and am invigorated by the members I connect with. And on top of it all, as a customer myself I get to experience the benefit firsthand. Well, this year it’s still my favorite issue! On page 21 you’ll read of the record return of $105 million in patronage going back to our members this coming March. While you read, you’ll also see we’re in the thick of delivering you with not a day, but a week of excitement – though all virtual, we’re excited to connect with you virtually through a series of videos and messages from your local team. But the story doesn’t stop there! 2020 also provided members’ savings through loan conversions to the tune of $32 million interest savings in just the first year of the reduced interest rate. 2020 has provided many things we’ll always remember, but these are two our members will be glad to remember! I’m also excited to share the story of two GreenStone members who positively changed their lives, not because they are female, but because they had a dream and worked hard to get it. See page 11 for Jennifer Dougherty’s professional expansion from civil engineering to turkey farming, and page 27 for realtor Connie Hotchkiss’s homestead expansion. The beginning of each year brings much excitement and activity for all. Be sure to pause on pages 15 and 17 for more ways we’re connecting with customers and providing you value over the next few months. Happy reading as we embrace an exciting new year!
18 Candid Comments 19 Behind the Scenes
– Melissa
20 Calendar of Events
29 Country Living Blog Brief 33 Commodity Cuisine... Juicy Smoked Turkey Breast
34 Crop Insurance News 37 Crop Insurance Calendar 38 Tax Calendar
This newsletter is published quarterly for the customers of GreenStone Farm Credit Services. Editorial Cassie Bowman Amber Echlin Melissa Rogers
Art & Design Hailey Andres William Eva Annah Horak
Partners GreenStone Farm Credit Services 3515 West Road East Lansing, MI 48823 800-444-3276 marketing@greenstonefcs.com
CEO Comments:
2021-Making Tracks How can any two years be so different in almost the blink of an eye? As we approach the one-year anniversary of our lives being turned upside down by COVID-19 in March of 2020, it’s getting harder to remember what life was like in the last few of months of what we nostalgically refer to as “normal.” Here at GreenStone, I remember our preoccupation with the impact the wettest conditions in nearly forty years had on yields and ultimately our customers’ financial performance. We were getting ready to launch the State of Michigan’s 2019 Low Interest Disaster Loan program, participating in the national Farm Credit System Annual Meeting in Washington, D.C., hosting our members during our annual Patronage Day celebration at all of our branches, and so on. Plus, all those little things we took for granted like getting a haircut, coming to work in the morning, eating out, going to the theater, attending sporting events, etc. All routine things that few of us likely would have considered blessings. As I’ve said before, up to this point the Coronavirus was like a “tsunami ripple” far out to sea that we thought would have little impact on our daily lives. Certainly, the preliminary reports about the virus causing widespread sickness and deaths in China we thought would never happen here even if, by some remote chance, it did make it to the United States.
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I must admit, those early reports didn’t have me convinced about the possible threats of the virus, but the virus did spread and we received our first reports of possible infections in some of our staff and customers. Just as many across our industry and the broader business community did, we pivoted to protect employees and customers while complying with what seemed like a never-ending pronouncement of government orders. On top of the early health impact the virus had, it also threatened to collapse our national economy and created as much, if not more, anxiety than the Great Recession of 2008-2010. The agricultural industry was hit hard as demand, particularly for protein products, evaporated overnight as processing shut down due to high infection rates in workers, all resulting in major commodity prices retreating 25-40% from January levels. Through it all, we strived to keep GreenStone and our staff focused on keeping the availability of essential credit and other financial services flowing to our members while working in an unfamiliar remote environment. Thankfully, our world class information technology team had nearly everything in place that we needed! Meeting our customers’ needs at that time of year under normal circumstances is always a challenge due to the seasonality of agriculture and their cyclical financial needs. Throw in the virtual platform and a call to implement a completely new lending program administered by a federal government agency we had no relationship with, created stress on steroids for many of us here. But you are blessed to be an owner in a cooperative filled with talented, committed, “do the right thing” staff and in spite of it all, we were able to extend nearly $145 million in Paycheck Protection Program (PPP) loans to 1,500 customers, which proved to be just the right “shot in the arm” (no pun intended) to get them through those very uncertain, dark, and volatile few months. Fast forward to the present and my, how things have changed! I’m actually getting used to wearing a face mask (Note: I did not say I liked it!). I’m more proficient at doing business on my laptop than I ever thought was possible. Yields across our territory were generally very good this past fall; in fact, harvest was completed well ahead of the five year average with nearly ideal conditions (remember 2019?); commodity prices have not only recovered since those dark days last spring, but are even setting new five year highs in many cases; interest rates continue to be at historically low levels; exports are increasing; and net farm income is forecasted to be $120 billion, which is 43% higher than 2019 and second highest of all time. I know government payments are reported to make up about 39% of this, but it’s still real money! And, most importantly, we may only be a few months away from having a safe/effective vaccine available for broad enough distribution to hopefully put the COVID-19 in its place for good! Still, I know there are many facing the financial realities of the economic impacts of the past year. As interest rates have dropped, GreenStone proactively worked with customers in 2020 to reduce their rates on over 12,000 loans, saving customers over $32 million in just the first year of the new loan rate.
patronage program that we won’t be able to safely celebrate together at your branch on Patronage Day. Instead, we are inviting you to join us online for our Patronage Week celebration when we’ll also mail your check to you! (See page 21 for additional details). Whether celebrating in person or afar, this record dividend return continues to be a strong indicator of our resilience and financial strength - even in challenging times - to provide superior value to our members.
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GreenStone will pay out $105 million in March 2021 - $5 million MORE in patronage than was returned to members last year.
And that’s not all! In a recent survey, you rated our customer satisfaction at its highest level since 2016 – 95% satisfied - even in the face of doing business in ways that prior to March of 2020 we thought were impossible. Our members continue to astound us with tenacity and passion, and I’m proud to work with a team who provides that same drive and cooperative spirit to help meet your needs. Some have been blessed as compared to many others over the past year. I pray we all take some time to quietly reflect on the dozens of lessons taught by this pandemic – things like never taking the little stuff in life for granted, such as large gatherings, going out for dinner on a Friday night, leaving home without a mask, but also the most important things like, family, friends, coworkers, and having enough to eat. Yes, many have truly suffered as a result of this pandemic from either losing their job or business, to being seriously ill and mental fatigue, experiencing death itself, or some combination. Regardless what life dealt you this past year, one thing we can control is being grateful for what we have. We certainly aren’t “out of the woods” yet, but if we reflect and learn on the lessons provided, then maybe several years from now we can point back to the pandemic of 2020-2021 as a flash point for positive change in our world to the best times we couldn’t have accomplished without it. Best wishes for a healthy and productive 2021!
The positives of the agricultural industry coupled with a skyrocketing housing market led to three times more loan growth than budgeted and record net earnings for GreenStone – and helped strengthen the financial quality and stability of our loan portfolio. Which brings me to the ultimate benefit of being a member of your GreenStone cooperative – Patronage. GreenStone will pay out $105 million in March 2021 - $5 million more in patronage than was returned to members last year. Unfortunately, this will be the first year in the 16-year history of the
Dave Armstrong
517-318-4105 dave.armstrong@greenstonefcs.com
Partners — Winter 2021
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Letting Go... by Avoiding the Identity Trap By Barb Dartt, DVM, MS Consultant – Family Business Consulting Group
“We’re really lucky. Dad created this business, welcomed us both back and then taught us to be good owners. He encouraged our teamwork and coached us…but let us make decisions and mistakes. He’s still here, most days. He’s got an office and he gives us good advice. And he got out of the way and allowed us to build this business beyond what he’d ever imagined.”
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I have heard several variations of this story from sibling teams as they describe a senior generation that shifted ownership and leadership gracefully and effectively. These teams now focus substantial energy on all the “normal” complexities that go with transition. Namely: Are owners aligned on what they want and need from the business? Is the company performing well enough financially to be transitioned? Are we in an industry that offers enough opportunity? Do we have successors that are capable? Do we have a successor team that works effectively together? How do we mitigate tax liability? More often, though, I am working with a family business team whose senior generation hasn’t yet let go. And it’s causing challenges above and beyond those typical complexities. Which is really quite normal – letting go is very hard work.
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More often, though, I am working with a family business team whose senior generation hasn’t yet let go. And it’s causing challenges above and beyond those typical complexities. Which is really quite normal – letting go is very hard work.
One Barrier to Letting Go – Your Identity
“One way or another, most people in transition have the experience of no longer being quite sure of who they are.” William Bridges. Bridges, an American author, speaker and consultant shifted the way people and organizations think about change and transition. Change, Bridges believed, happens to people. Transition, he observed, is internal: it’s what happens inside people’s minds when they’re presented with change. And for those who are working to transition from leader to coach, from owner to part time employee or from someone with a high degree of control to watching the decisions get made by others…who they are, or their very identity, is at stake. An individual’s identity as a leader of a family businesses often eclipses all other roles that individual might hold – father, aunt, brother, son, friend, fisherman, volunteer, board member As departing leaders face the challenge of having little experience with these other roles they can shift to in the future, they also face very specific losses associated with giving up the “leader” role. For example, they are likely losing their identity as a decision-maker and authority figure, benefits, and sometimes even their purpose. So, what can you do to be applauded like the senior gen in the opening story? How can you be the family business leader who gave up control and authority, transitioned to being a coach and truly enjoys watching the next generation do your job, at some levels, better than you have?
Avoid the Identity Trap 1. Acknowledge that you might have committed extensively to one role.
Begin to assess how many (or few) roles you may have to transition to by determining how significant your work role is within your life. 2. Make a plan for expanding into new roles.
Even if you haven’t sacrificed every role in the name of leading and building a business, it will still serve your transition well to be intentional about where you want to spend your time in three or seven or 15 years. In that future, do you want to increase the time spent on being a wife or mother? Perhaps a caregiver for grandkids or parents? What about fulfilling your purpose through service rather than business – could you share a special handson skill? Spend a bit of time envisioning that future. 3. Specifically define your reduced role in the business.
With your partners and successors, get formal about the hours you’ll work, what decisions you will give up and when, where you’ll office and what title you’ll have. This exercise is usually awkward. Even if senior gen had a job description, the detail required here is at a level that will make you squirm. Next gens – if your first thought on reading this is to leave the magazine open to this article on someone else’s desk, I encourage you to do this exercise yourself, first. Healthy habits, started early, grow fast – think of compound interest. Then, to bring it to your
senior gen, you might start the conversation by noting how aligned you believe your goals are: namely, continued family business leadership and ownership. IF that goal is aligned across generations, it should provide the opening to discuss how you see that joint goal being achieved. The identity trap, while not the only barrier to family business transition, is a particularly challenging one. As those with their identity tied up in the business face change, it tends to look like the “end of the line,” rather than a door opening to something new. Often, this causes them to focus a lot on what they need…rather than what the business needs. As one leader, struggling with his transition, said to me, “I know I need to ask, “What does the company need from me?” And, what happens if that prevents me from doing what I love?” Being deliberate about defining a new non-business role and detailing your (possibly reduced) business role can be a great start to preventing feeling stuck in an identity trap. ■ 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 – and assisting with succession and continuity planning. Barb can be reached at 269-382-0539 or dartt@thefbcg.com. For help on #1 above, consider completing the “Centrality of Work Role” assessment from the book Transitioning from the Top by Stephanie Brun de Pontet. Partners — Winter 2021
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Winter Market Outlook:
Recapping
By Matthew Naeyaert, GreenStone Capital Markets Senior Credit Analyst, and Nick Jablonski, GreenStone Capital Markets Credit Manager
Well, 2020 sure was one for the record books, huh? A lot has happened this year, so much that it can be easy to lose track of it all as the ever-shorter news cycle buzzes around us. With that in mind, we have opted to use this quarter’s credit update as a final look back on the material economic events of year, and also to set the stage for what is sure to be an interesting 2021.
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The story starts of course with Covid, and the initial spring shutdowns. Its hard to exaggerate how severe the swings in the financial and labor markets were during March and April. We saw 22 million jobs lost in the span of 2 months, with the unemployment rate spiking to nearly 15%. The stock market fell by over 30% in a matter of weeks, triggering panic-selling circuit breakers on the way down. Bond markets moved volatilely at the same time, leaving the “safe” portion of many people’s portfolios suffering as well. Prices for virtually every commodity dropped off markedly due to the uncertainty around future demand. All in all, second quarter GDP declined by 31% on an annualized basis, the steepest quarterly decline on record. As spring turned to summer and we flattened the curve of the initial Covid surge things began to rebound in at least some areas of the economy. The $2.2 trillion CARES act relief package that was passed in a bipartisan way beefed up unemployment benefits and provided direct cash relief to every American, helping to stem the tide of income loss (and the foreclosures that inevitably come with it). After the staggering job losses reported in March and April, we saw six consecutive months of jobs growth. The stock market rallied back to new highs almost as fast as it had gone down, and third quarter GDP jumped by 33% compared to Q2, its largest quarterly increase in history. Single family home prices have also appreciated rapidly during the second half of the year, largely due to record low mortgage rates, relatively low levels of housing inventory, and an accelerating shift in consumer preference away from city-dwelling and towards suburb-dwelling. We also experienced a surge in new single-family housing starts and home improvement projects, which led to strong demand for dimensional lumber and other wood products. While developers of single-family homes are optimistic that this trend will continue, there is some concern over the future affordability of building such homes given challenges related to sourcing labor, lot availability, or sourcing lumber and other key building materials. The multi-family housing segment did not fare as well as the single-family segment given the shift from cities to suburbs, with multi-family starts falling by a total of 3.7% year-to-date. Various commodity segments saw steep rebounds after the initial March/April sell-off as well. Dairy markets were particularly volatile, with the class III futures price briefly falling below $12/cwt. in April due to supply chain disruptions and school closures, only to surge above $20/cwt. in October. Grain prices followed a similar trajectory, with both corn and soybean futures selling-off through the summer before staging a fall rally that was driven primarily by increased exports volumes
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Various commodity segments saw steep rebounds after the initial March/April sell-off as well. Dairy markets were particularly volatile, with the class III futures price briefly falling below $12/cwt. in April due to supply chain disruptions and school closures, only to surge above $20/cwt. in October.
(particularly to China). Livestock and poultry producers faced a mixed bag as well, with profitability largely dependent on which market niche they primarily serve. It is important to note the profitability gap between “retail” and “foodservice” in these market segments as well, as that was one of the defining themes of 2020 from a credit perspective. Many producers and processors with a retail/grocery focus saw demand spike dramatically in some cases as consumers shifted towards doing more cooking at home. That being said, those with a more foodservice or restaurant focus saw significant demand destruction due to sluggish sales and closures. We would be remiss if we didn’t also mention the developments seen on the trade front given its outsized impact on agricultural markets. It is easy to find both positives and negatives when looking at how international trade has played out this year. On the one hand, overall exports to the ever-important Chinese market were roughly half of what was agreed to in the Phase I trade deal between the two nations, a sign that the optimistic targets laid out in that accord may go unmet. On the other hand, exports of soybeans, corn and pork products to China all grew tremendously during the second half of the year, thereby helping the overall demand pull for these products and supporting higher prices. This recent increase in exports to China appears to be largely driven by internal domestic factors within the country, as the fallout from the 2018 African Swine Fever outbreak cut the country’s hog herd in half, leading
Partners — Winter 2021
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to a protein shortage. The rebuilding of the massive Chinese hog herd has led to strong demand for feed grains as well, which drove the increased export demand seen for those products. Domestic corn prices within the Chinese market have spiked to nearly $9/ bushel, which has also increased demand for U.S. grains. It remains to be seen if the recent uptick in agricultural export volumes to China can be maintained going forward, or if they will recede once the internal factors noted above abate. For its part, the USDA is forecasting an improved outlook for U.S. agricultural exports in 2021. Total agricultural exports are projected at $152.0 billion, which would represent a roughly 12% increase over 2020. Two of the main commodities contributing to this expected export growth are corn and soybeans. Corn exports are forecast at $13.2 billion, up over 60% from 2020 due to record production forecasts and higher unit values. The projected volume of corn exports has been lifted due to higher demand expectations from China and reduced competition from Ukraine as their supplies have been severely diminished. The volume of soybean exports is also projected to increase due to the in-
creased demand expectations from China as well as lower short-term competition from Brazil producers. Government support also played a major role in 2020, with the Payroll Protection Program and other relief programs helping to support struggling businesses across the economy, including in agriculture. Per the USDA, overall net farm income, the broadest measure of agricultural profits, is forecast to increase to $102.7 billion in 2020, a 22.7% increase compared to 2019. This expected increase is largely related to increased government payments related to COVID-19 relief. Direct government farm payments are forecast at $37.2 billion in 2020, an increase of $14.7 billion or 65.7% compared to 2019. If realized, the $102.7 billion of projected net farm income in 2020 would be ~25% below the 2013 peak for the same figure, but 13% above its 20year average. Farm sector equity is forecast to total $2.68 trillion in 2020, a 0.7% year over year increase. Farm assets are expected to increase by $33.7 billion (1.1%), reflecting a commensurate rise in farm sector real estate values. Farm debt is forecast to
increase by $15.2 billion (3.6%), to $433.8 billion, led by an expected 5.5% rise in real estate debt. The farm sector debt-to-asset ratio is expected to rise from 13.61% in 2019 to 13.95% in 2020. Working capital, which measures the amount of cash available to fund operating expenses after paying off debt due within 12 months, is forecast to decline 12.8% from 2019. If 2020 has taught us anything it might be to expect the unexpected. Nobody can predict what 2021 will bring us, and there is reason for optimism, but many risks remain present as well. Will the vaccine be effective? Will we be able to successfully administer it? How will the economy respond and what further policy measures might we face? Will continued labor market weakness result in increased bankruptcies and foreclosures? Given the unprecedented growth seen in the money supply in 2020 will inflation rear its head as re-openings gather steam and people begin to travel again? Those all remain unknowns. But, with some luck maybe 2021 will see a return to normalcy, or at least something close to it. Here’s hoping. ■
2020 U.S. Projections:
Net farm income:
2.68
$
trillion Farm sector equity
102 billion
$
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Farm Assets +33.7 billion
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AGRICULTURE – OPEN FIELDS BLOG BRIEF GreenStone publishes regular updates on our Open Fields blog. Check out some of the posts you may have missed at www.greenstonefcs.com/openfieldsblog. Commodity Update: Corn Harvest, Markets Provide Optimism Michigan and Wisconsin corn growers saw quality yields for the crop year and weather conditions allowed for a timely harvest.
The Management Mindset of the 2020s Dr. Kohl shares how a management mindset will be a critical element for success in the decade of the 2020s in agriculture. Farmers After Hours: Profitability and Financial Fundamentals Farmers After Hours provides beginning and young farmers the financial foundation necessary to take their farm’s business success to the next level. Tax Planning: More Important Now Than Ever! No Really, I Mean It This Year! Tax planning is always critical to running your farming operation and I would argue that this year with COVID-19, tax planning is more important now than ever! ■
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Expanding careers From engineering to poultry.
Young, Beginning, and Small Farmer Feature
Five years ago, Jennifer and Phil Dougherty were in their early 40s with four kids, and financially stable with two self-employed careers. Some might have called them crazy to venture off into the capital-intensive, start-up turkey business – they saw it as an opportunity.
They had some experience. Jennifer grew up on a dairy and turkey farm and Phil, the son of a pastor, worked in the local feed mill and was a laborer on area farms growing up. They both loved the idea of farming, but as young adults, the opportunity and ability were not there. So, off to college they went. Jennifer got a degree in civil engineering, while Phil became an electrician. They married in 1995 and settled on 40 acres in Alto, 11
Winter 2021 — Partners
Michigan, just a mile from the farm where Jennifer grew up. “Growing up, I always enjoyed farming with my dad, (Bill Wieland), but when Phil and I were out of college, Dad wasn’t ready to retire. So, we figured farming just wasn’t in the cards for us and went on with our careers.” Jennifer’s mom, Carol Wieland, passed away in 2000, which prompted her dad to look at what he wanted to do to retire.
At that time, Jennifer’s younger brother Chris Wieland took over the farm, which in the late 1980s transitioned out of dairy and into contracted turkeys. Life was humming along when the prospect of becoming a turkey grower presented itself. Michigan Turkey Producers, a co-op formed to fill the processing need in Michigan, was looking to add more turkeys. A contract was extended to
GROW
View a highlight real video at: www.greenstonefcs.com/YBSFW21 ➡F armer and engineer Jennifer Dougherty standing in front of one of the farm’s turkey housing barns.
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The startup costs were just so phenomenal; no one was interested in lending except for GreenStone, because they understand the logic and dynamics behind farming.
They built three 60-by-500-foot grow-out barns, a 50-by-200-foot brooder, as well as a shop and manure building. In a year, they cycle through 8.6 flocks of about 8,700 birds each for an annual production of about 75,000 turkeys. Birds arrive at one day old and grow out to about 19 to 20 weeks. “We couldn’t be happier with the service and financing we received from GreenStone,” Jennifer says. “Collin called to check on us when COVID-19 started to make sure things were going well and if we needed anything.” With the market disruptions caused by the pandemic, “We increased our line of credit just in case things went really bad, so we were prepared. Thankfully, we haven’t needed it,” she adds. Up and running
While Jennifer already knew quite a bit about raising turkeys, she’s quick to admit there was still a huge learning curve. They attended meetings, they observed, they asked a lot of questions. “The other farmers in the co-op are very good about sharing information,” she explains. “Many of these growers have been doing this for decades, generations; they are such a wealth of knowledge.”
Chris, but he didn’t want to expand the full amount allotted to him. “He asked if we were interested in growing turkeys – that’s how it all started,” she says. Decision time
The process started in 2015. Their 40 acres was enough for a smaller operation. “We said, you know, if we can get funding, if we can get everything laid out, if we can make it all work, then it was meant to be – we’ll go for it,” Jennifer recalls. “That’s kind of how we rolled with it the whole time.” Being already self-employed, Jennifer says it helped because they were used to dealing with self-employed salaries. “When money was available, you had it; when it wasn’t, you worked around it,” she says. There was a precedent in her childhood, Jennifer’s father – who also had four kids in high school and middle school at the time – made a bold move to sell his cattle and 13
Winter 2021 — Partners
start growing turkeys. “He totally changed his life path – we had seen it happen and be successful,” she adds.
The couple runs the operation themselves; Phil quit his job as an electrician to become the full-time farm manager. “But, as we were designing and building, it was pretty great to be able to draw on our skills as an electrician and civil engineer,” adds Jennifer, who maintained her job, but manages the paperwork for the farm.
Today they work with GreenStone’s Collin Nurenburg, their financial services officer in the Ionia branch.
She also does chores on the weekends, bringing another perspective to the operation. “By being there only on the weekends, I can give a fresh set of eyes on the barn and on the birds,” she says. “Phil and I bounce ideas off each other, and we sometimes look at things differently, so it’s a nice balance. We complement each other well. In the last three years we’ve figured out how to make suggestions and how to work together without driving each other nuts. It’s a balancing act, but it’s worked extraordinarily well so far.”
“They were detail oriented, honest and forthcoming with what they wanted to do,” says Nurenburg. “We helped finance site work, the turkey barns and other structures they started in 2016 and ended in 2018. We also secured a full year of operating credit for them.”
Being a civil engineer, she’s used to being in a largely male-dominated field. “I’m used to there being only one or two women in a meeting of 25,” she explains. “Luckily, everyone in the ag industry has been very accepting because you know their wives and daughters help run their farms, too.”
But, could they get the financing? “The startup costs were just so phenomenal; no one was interested in lending except for GreenStone, because they understand the logic and dynamics behind farming,” she says. “You have to run all the numbers for it to make sense.”
The Doughertys’ oldest daughter Ella, 19, was part of the farm operation growing up, but is now studying to be a physical therapist at Trine University in Angola, Ind. Their other children, Sam, 17, a senior at Lowell High School, Maeve, 15, a sophomore and Caleb, 10, a fourth grader, help out as needed when two sets of hands are not enough. The biggest challenges on the farm are keeping all the pieces and parts moving, while keeping disease at bay, according to Jennifer. From sourcing shavings to selecting water treatments, it’s about keeping the birds healthy. “There’s always a lot of stuff percolating, and like I’ve been told, turkeys are always looking for ways to get sick. So, you must look for and solve a problem before it happens. It’s amazing how you can stand in a flock of turkeys, listen and look, and you can tell if they’re feeling good or not.” For right now, Jennifer and Phil plan to stay the course, and continue to improve efficiencies and animal health. “We’re doing everything we can to keep them healthy and happy. For Phil to work full time and me part time on the farm, that’s a nice fit. It’s hard to say what the kids will want to do.” ■
JENNIFER DOUGHERTY’S ADVICE FOR NEW FARMERS The safe way isn’t always the best way “I grew up helping my dad on our farm and always dreamed of going back to farming. It didn’t make a lot of sense for my husband and I to change careers in our 40s. Why would an engineer and electrician want to become turkey farmers? It wasn’t the safe thing to do, but I am very thankful we took the risk to chase our dreams.” There is no “man’s work” or “woman’s work” “My husband and I have different skill sets. There are some jobs he is better suited for, some that I am better suited for, and some that are best done together – it is often not based on traditional gender roles. The trick is finding out who is best for which job, while still maintaining a strong and happy marriage.” Work on the things you are not good at “While I am better suited for some jobs on the farm, I am working to make sure I can do everything that needs to be done. I try to improve on the things that are not my strong suit - like backing up trailers and operating all of the machinery. Because I know things can change in an instant, I want to be able to run the farm on my own if, God forbid, the need ever arises.” Ask for Advice “There is always more to learn. Ask someone with more experience how they deal with particular problems. Most people are more than willing to help, but often won’t offer advice unless you ask. You can learn a lot by asking and then having an open mind when you get an answer.”
➡G reenStone Financial Services Officer Collin Nurenberg and customer Jennifer Dougherty take a stroll around the Dougherty Farm’s property.
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YBSF RESOURCES–
APPLY NOW! GROW FORWARD GRANT PROGRAM Through GreenStone’s mission of supporting the rural communities and agriculture industry, today and tomorrow, we are also committed to providing resources and guidance for young, beginning and small farmers.
Whether you are starting a business from the ground up or taking over your family’s generational farm, you need the right resources and knowledge to overcome the challenges of today’s highly competitive market. At GreenStone, we understand the financial barriers the next generation of farmers face and believe education with relevant resources can prepare these producers to successfully compete in a rapidly changing marketplace. To help offset the cost of educational programs and business services, our Grow Forward Grants provide financial support to young, beginning, and small farmers. Each year, up to $40,000 in grants are available for young, beginning and small farmers through GreenStone’s Grow Forward Grants. Each grant can be up to $1,000 to current customers and up to $500 to non-GreenStone customers. Eligibility: • Young, beginning or small farmer – 18-35 years of age, or – Farming for less than 10 years, or – Sustain annual gross sales from agricultural production of less than $250,000 • Must be eligible to be a member of GreenStone, residing in Michigan or northeast Wisconsin Intended grant use must fall within one of the following categories: • Agricultural programs/events: educational course/program (onsite or online), conference fees, etc. • GreenStone resources: first time use of accounting or tax services • Non-GreenStone services: business and farm consultations, farm succession planning, etc. Interested in applying? Grants up to $1,000 are available with more specific details on the application at www.greenstonefcs.com/ybsf. ■
GreenStone College Scholarships
Grads Apply Now! 15
Winter 2021 — Partners
We take pride in supporting agriculture at all ages and are proud to announce our 2021 GreenStone Scholarship program is now accepting applications! Once again, we will be awarding up to $40,000 to incoming college freshmen who plan to pursue a degree in an agriculture-related field. Students planning to earn a four-year degree are eligible for a scholarship of $2,000 and students attending a two-year college program are eligible for a $1,000 scholarship. High school seniors can apply now and learn more details about GreenStone’s scholarship program by visiting www.greenstonefcs.com/scholarships. Application deadline is Sunday, February 28, 2021. ■
CONNECT
NEWS: “CUSTOMER FIRST” VALUE STANDS STRONG Customers appreciate commitment, trust and quality in their cooperative, with 95% satisfaction In a year when any number of challenges could be responsible for disappointments, GreenStone customers continued to find comfort in the strong partnership they have with their cooperative, by increasing their satisfaction rating to 95 percent. In the annual survey, GreenStone once again scored above industry averages with a 95 percent overall customer satisfaction rating in 2020. A slight improvement over 2019’s satisfaction, the 2020 rating marks more than 15 consecutive years of a 94 percent or higher grade for your memberowned cooperative. Not only did overall satisfaction tick up, so did the percent of very satisfied customers – the top of the seven-point scale.
Interest rates is another topic that is routinely on customers’ minds and included in survey comments. Many acknowledged the value of GreenStone’s loan interest rate conversion process, which touched over 11,500 loans in 2020 and saved members over $31 million in the first year of the reduced rate. The ability to take advantage of the low-rate environment remotely, through a quick and simple process, was repeatedly mentioned as an important member benefit, on top of the $100 million in patronage profit sharing that was returned to them in March 2020.
“Our customers continue to tell us that partnership is primary to their satisfaction. The benefits of being a member of the cooperative provide important value, but it’s the personalized relationships, customized solutions, and committed support they expect – and get – from GreenStone that resonates.” Dave also acknowledges, “We all know things weren’t perfect in 2020, and while we celebrate the confirmation of the success of our efforts, we also acknowledge all feedback customers provide and will use it to reinforce our values and improve our processes as we move forward to an equally successful 2021.” ■
“While this increase may not sound like a lot, it is a significant accomplishment to move the needle at this level, particularly in a year like we’ve all just come through,” says President and CEO Dave Armstrong. “Our customers experienced the gamut of challenges, with processing interruptions early in the year, to changing the way they work with us and all of their business partners, to volatility in commodity markets, labor issues, and more. I’m extremely proud of our team’s commitment to our core values as we worked to find new solutions to our members needs and to support them through the additional pandemic related programs we were able to deliver.”
Customer Satisfaction
Customers provide candid feedback on their experience with GreenStone and expectations of their financial partner. Words like trust, communication, care, knowledge, friend, available, adapt, simple, and local permeate through the survey responses – all characteristics of GreenStone’s relationship-based culture that remained at the foundation of the association’s pandemic safety business decisions.
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Ladies’ Day Out
via the link below to enter for a chance to win a prize delivered right to their door! www.GreenStonefcs.com/LDO21. ■ Farm Women’s Symposium
We regret our traditional 2021 Ladies’ Day Out event for GreenStone Wisconsin customers has been canceled due to the ongoing COVID-19 pandemic, and are looking forward to gathering together again in 2022. In lieu of our traditional event, GreenStone is doing something special in our communities this year by donating to two agriculture programs: the UW Extension Heart of the FarmWomen in Agriculture program and the Wisconsin FFA. To celebrate and share in a little different way, we’ve put together a short video featuring some familiar faces who would like to say hello. GreenStone Wisconsin customers can watch the video
The Farm Women’s Symposium team didn’t want to miss the chance to connect with everyone this year, and is excited to announce a new, free one-day virtual event being held in early March 2021. Visit their Facebook page or www. farmwomenssymposium.com for more details! And be sure to mark your calendar for March 2-4, 2022 for the 30th Annual Farm Women’s Symposium. The committee is looking forward to seeing everyone in Holland, Michigan in 2022! ■ 2021 Virtual Logging Forum Success in the timber industry takes planning, hard work, good management and long-term commitment. As a long-term, reliable financial partner to the
lumber industry, GreenStone knows this. To safely provide our members and individuals working in timber with mill updates, information about equipment financing, and more, GreenStone will be hosting a free, virtual Logging Forum on Wednesday, March 24 from 9:00 a.m. to 12:00 p.m. There is no cost to attend, however registration is required. To learn more and to RSVP, go to www.greenstonefcs.com/ timberforum. ■ 2021 Home Construction Webinars Building your dream home starts with creating a plan outlining how to get there; with so many construction choices, it’s important to choose the right options. During January, February and March, GreenStone will host several free Home Construction Webinars to help you understand which plan will work best for you.
as one of Dairy Farmers of America’s Members of Distinction. DFA’s Members of Distinction program recognizes farmers who excel on their operations, in their communities and in the industry. They inspire others through their actions, leadership and involvement, and embody the Cooperative’s core values. Each year, one member from each of DFA’s Areas is honored for leading the industry with vision, dedication and innovation.
2. GreenStone customer Don Stall pushed beyond 400 bushels per acre this year, netting him the top yield of the National Corn Growers Association’s 2020 National Corn Yield Contest. Congratulations Don!
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Annual Report Notice Notice: GreenStone Farm Credit Services’ 2020 annual report will be available for viewing online at www.greenstonefcs.com by Monday, March 15, 2021. In addition, the annual report will be sent to all stockholders within 90 days of year-end. By regulation, GreenStone is required to send a copy to each stockholder, regardless if it is a duplicate mail or email address. ■
During these free, one-hour virtual
Pause for Applause... 1. Congratulations to Swisslane Dairy Farm for being recognized
seminars, you will hear from construction loan experts about various loan options, financing qualifications, the draw process and the difference between do-ityourself and contracted building projects. For more information or to register to attend a Construction Seminar near you, go to www.greenstonefcs.com/ constructionwebinar. ■
SERVICE ANNIVERSARIES Help GreenStone congratulate and thank these staff who are celebrating an employment milestone. From five to 40, the years represent the dedication and service all employees provide our members. January Kortni Lefevre (10) James Murphy (10) Erin DuBois (10) Teresa Rodgers (20) Renee Heintz (20) Carol Walikangas (20) Nicole Wesoloski (20) February Harry Tope (5) Linda Robertson (5) Jessica MacDonald (5) Emelee Rajzer (15) Tracy Koch (25)
March Kyle Schmitt (5) Jordan Wernette (10) Paolo Dilernia (10) Mindy Leonard (15) Therese Hill (15)
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On behalf of the Michigan Farm Bureau State Young Farmer Committee, I’d like to thank you for the support of our Young Farmer Program. As we strive toward the development of future farmers, your support is always valued. Thank you! — Michael McKeown State Young Farmer Committee
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We value the partnership we have with GreenStone and deeply appreciate your ongoing and unwavering support. Thank you!
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— WI Cattlemen’s Association
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— Brenda Scheider, Executive Director of Wisconsin 4-H Foundation
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Thanks for your continued support of the Wisconsin Cattlemen’s Association. Your support is invaluable to our member activities such as Winter Conference. We appreciate your support.
On behalf of all the members of DAV Chapter 53, thank you for your very kind donation and support over the years. Your donations have helped out greatly with the disabled veterans and their families in the rural area.
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— Charles Vandenplas Disabled American Veterans
Dear Mr. Armstrong and Mr. Anderson Friday the 13th, the most feared day and date in history, one associated with bad luck and terrible outcomes. For the Collins and LaCross families though, Friday, November 13th is a day that will be celebrated for generations! On that day, at Bay Title in Escanaba, we closed a loan through your company for the purchase of the Burnt Bluff property in Fayette, MI. It is in this area that the Collins family put roots down over 100 years ago. Our relatives still farm the land there and we own property right next to Burnt Bluff that was passed on to us by our father many years ago. Our entire family camps on that property every year and now with the new purchase we actually have cabins to stay in, a clubhouse to gather in, and a marina to enjoy the water from. To say that this purchase is one of the greatest things to happen to our family would almost be an understatement...if that’s possible. When I told our Mom that we were purchasing this property she cried and stated that our Dad (deceased 2007) would be so proud and so happy! He grew up there and we have pictures of him from when he was a boy and teenager at this property. So, thank you as your company made this dream possible for us! About your company, for many years I have seen your billboards on Michigan’s highways. They are actually very calming to me, thinking of the promise that they imply and the dreams that come with it. A promise and a dream that you delivered to our families. It’s not often that a company can live up to what they say their brand stands for. You both should be very proud that your company does. Just because someone says “this is what our culture is” doesn’t make it true, so you both should be congratulated for developing a culture throughout your company and within your employees that embraces exactly what your implied promise is! Which brings me to two of your employees who deserve our forever gratitude. Cameron Rowe and Carrie Lockwood who both work in your Escanaba office. This was a complicated purchase…and they handled it all like the seasoned pros that they are! What was especially comforting for us was the palpable excitement which they both showed in our desire to purchase this property, you could tell that they were vested in, and pulling and rooting for us to achieve this dream! This is your culture defined and lived! There are other employees in your company who would have touched our loan file and made this possible, they remain unknown to us but our thanks go out to them as well. I apologize for the length of this email, but we felt compelled and that it was necessary for us to share our experience and happiness with you!
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— Best Regards, Tom and Darcy Collins and Jeff and Lisa LaCross
...Candid Comments
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Talli Bode 12 Years of service Loan Accountant Cadillac, MI Describe how your role carries out the GreenStone mission of supporting rural communities and agriculture.
BEHIND THE SCENES In this behind the scenes, two GreenStone employees from the corporate Accounting and Finance Department speak about how their daily work supports customers and improves the overall customer experience.
As a loan accountant, my primary job duty is to handle all the outgoing wires for GreenStone. My job keeps the funds going out to our customers so that they are able to operate and make their business purchases. What do you enjoy most about your role at GreenStone? I really enjoy the fast pace of being a loan accountant. With all the transactions going on daily, I feel like I am accomplishing a lot for GreenStone and our customers on a daily basis.
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The accounting department has played an integral role in the new Paycheck Protection Program. What changes have been incorporated in your role to meet evolving customer needs? The accounting department has played an integral role in the new Paycheck Protection Program. The Paycheck Protection Program came out this past year to help support businesses through the pandemic and has substantially helped our customers during this difficult year. What do you enjoy doing in your free time? I enjoy the outdoors, especially biking when it is nice out. I also enjoy spending time with my friends and family.
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Rebecca Davis 18 Years of service General Ledger Accountant East Lansing, MI Describe how your role carries out the GreenStone mission of supporting rural communities and agriculture. For me, all of my “customers” are internal branch staff. I help provide answers to questions of “how to” for the customer service representatives, so they can successfully service our external customers’ needs. I take pride in delivering quality service so that GreenStone can keep our customers financially healthy and happy.
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The 4-H horse project has been a huge part of my life over the last 13 years; I am a project leader and both my daughters showed.
employment and look forward to the next ten years with the best company in Michigan.
look for process improvements and changes that will make for a better workflow.
What do you enjoy most about your role at GreenStone?
What changes have been incorporated in your role to meet evolving customer needs?
What do you enjoy doing in your free time?
GreenStone has given me opportunities to grow throughout my career. Our employees are a great group who want to see GreenStone and our customers succeed. We also give so much back to our local communities and children. I thank GreenStone for the many years of
Our technology is always changing, finding new and better ways to get the job done. I have been involved in numerous projects over the years that have created better service options for our employees to support members. I also constantly challenge myself
The 4-H horse project has been a huge part of my life over the last 13 years; I am a project leader and both my daughters showed horses. I am currently taking a break from that as my girls are both adults now, but I have a new granddaughter that I am sure will take up the reins when she is old enough. ■
Mark Your Calendar... JANUARY
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Ladies Day Out Door Prise Entry (Jan. 5 - Feb. 5)
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GreenStone Closed In Honor of Martin Luther King, Jr. Day
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DBA Dairy Strong Conference (Jan. 19 - Feb. 2) Virtual Event
FEBRUARY
4
Great Lakes Regional Dairy Conference (4-5) Virtual Event
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Michigan Good Food Fund Loan Preparation for New and Beginning Farmers; Webinar Series Virtual Event
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Michigan Potato LIVE (Living in Virtual Education) Webinar Series (Jan. 14 – March 4) Virtual Event
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GreenStone Closed In honor of Presidents’ Day
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Outdoorama; Suburban Showplace (25-28) Suburban Collection Showplace, Novi, MI
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GreenStone’s Patronage Week (8-12) Virtual Event
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Member Grown Outreach Voting (8-19)
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Ultimate Sports Show (18-21) DeVos Place, Grand Rapids, MI
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GreenStone Logging Forum Virtual Event
MARCH
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Commodity Classic (2-5) Virtual Event
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Farm Women’s Symposium Virtual Event (Early March)
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Michigan Good Food Fund Loan Preparation for New and Beginning Farmers; Webinar Series Virtual Event
* Event dates and details accurate as of December 30, 2020.
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#PartnershipPays
The GreenStone Story:
Partnering with GreenStone pays in more than one way! There’s only so many ways to say “a year of firsts,” “unprecedented events,” “committed now more than ever,” and yet, here we go again – but we think this one might be the most fitting yet. PATRONAGE WEEK – March 8-12, 2021 – Join us virtually
Our members are at the core of every decision your cooperative makes. And when it comes to finding ways to benefit our members, we’ve been moving full steam ahead for 105 years. So it’s quite fitting that our members will be receiving $105 million in patronage dividends this year! What’s that mean to you? It’s 16 years of your partnership paying back $605 million to our members. This is another record return, a record in a year of tremendous uncertainty, hardship and challenges for our members, our employees and our industry. Those challenges haven’t ended,
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the uncertainty remains, and things continue to change. Patronage 2021 won’t look the same as it has – there will be no check pick-up or in-branch celebration – instead we invite you to join us online for a virtual celebration the week of March 8-12, 2021 when all checks will be mailed to members. While you’re with us online that week, help us again identify the community organizations for our $20,000 Member Grown Outreach support. Place your vote for your chance to win your branch’s gift basket of hand selected local goodies valued at $105. In February, members will receive individual notification of
their portion of the $105 million being returned, while the check itself will arrive to you through the mail the week of March 8. Patronage has been a celebration we cherish each year. You can’t beat the atmosphere of a day passing out checks and visiting with members. But your safety is far more important, and the checks will come no matter what…because your partnership with GreenStone pays! Like many things these days, we miss our members – our friends – and are disappointed we aren’t able to open our doors and celebrate in person with you this year. We’re looking eagerly to a time we hope isn’t too far into the future when we’ll be able to visit freely without concern.
CONVERSIONS:
Patronage:
105 million
1.25% $ Average rate reduction from patronage returned
patronage returned
Virtual Event Patronage checks mailed March 8-12, 2021
$ 605
Million paid over the last 16 years
Conversions:
32
$
Million savings in year one
12,000 Loans converted
Average 1.02% reduced rate on converted loans
2020 showed its hand full of wild cards, and thousands of GreenStone members benefited when the record-low interest rates card got played. Over the course of the year, GreenStone reached out to customers and converted over 12,000 loans to a lower interest rate. Conversions averaged a 1.02% interest rate deduction and will save those members over $32 million in reduced interest payments in the first year alone! On top of the dollars saved, GreenStone’s loan conversion process is simple without the complexity of a typical loan refinance – resulting in a quick and headache-free experience. There are no appraisals, new financials or supporting documents, application nor a loan closing to convert the GreenStone loan. In the matter of a day and a secure exchange of documents and an online signature, customers reduced the interest rate on their existing loan and began saving. Not only does a conversion with GreenStone allow you to change the interest rate, you can adjust your loan terms to reduce the lifespan of your loan – giving members the flexibility to both reduce interest paid and the number of payments if they wish. GreenStone has offered this conversion option for more than a decade, but the broad and extended dip in interest rates in 2020 offered an excellent opportunity to help our members save money. Conclusion
Profit returns, competitive interest rates, and a customer focused team providing personalized solutions are a trio of benefits unique to only your cooperative. The dollars offer an important tactical value, and our partnership will continue to pay in more ways than any one! ■
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Director’s Perspective :
David McConnachie David McConnachie was elected back to the GreenStone board of directors in 2020. While new to the director’s seat in 2020, David comes with experience, having previously served 13 years on the Farm Credit board before an eightyear break. David takes a few minutes to share more about his farm and perspective as a returning board member. Tell us about your farm...
I grew up on a dairy/crop farm, and my parents, John and Edna, offered my wife, Sally, and I the opportunity to continue the generational succession. Now we feel blessed that our daughter, Shelley and her husband, Tim, were interested in the same type of succession to become the sixth generation of our family farm. As on most farms, as in most businesses, our farm has evolved and grown, and we’re proud to currently be growing sugar beets, wheat and dry beans on some of the same acres for decades. Times change and our sixth generation will be the first surname change on this branch of succession. Why do you serve...
I am proud to be part of something that helps rural communities as much as GreenStone does. GreenStone continually looks for opportunities to help our members,
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along with the usual loans. With GreenStone’s success and growth, there is now even more opportunity to assist and promote the full rural community, and not only the farmers. What has surprised you the most returning to the board eight years later...
I previously served 13 years as a director on the GreenStone board prior to 2012. Not surprisingly, GreenStone remains in good to excellent condition today. Two things that are telling is its growth and patronage returns. Although there is always room for improvement in any organization, GreenStone’s board, management team and all the staff I’ve met really do an excellent job. Faces have changed, but the quality of the people have not. New people often come with new ideas and new energy, and that has also remained consistent.
I am proud to be part of something that helps rural communities as much as GreenStone does.
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What do you see as priorities for GreenStone...
I am kind of old school, and my number one priority is that GreenStone continue to offer competitive long-term rates. GreenStone must continue to adjust and prioritize as future unknowns, such as the Coronavirus implications and other 2020 surprises, arise. Why is serving your cooperative important to the success...
Going back in time a little, I was one of about 40+ directors on four Farm Credit associations in Michigan that made the decision to merge into one to create GreenStone Farm Credit Services...which was not an easy task. A few years later, we merged again with northeast Wisconsin and the upper peninsula of Michigan. Merging gave GreenStone size and opportunity. GreenStone was able to expand into capital markets, which now makes up a pretty hefty percentage of GreenStone’s business. This, along with many other business decisions, has gotten the organization to where it stands today, allowing GreenStone adequate capital for patronage, and continues to be a first choice in providing loans. Whether someone is looking to borrow money or not, GreenStone tries hard to offer many other necessary services. Working together to offer my experience on the direction of such an overall topnotch organization is what makes being part of this board such a pleasant part of my life. ■
View David McConnachie’s profile video: www.greenstonefcs.com/DaveMcConnachie
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Legislative Matters:
RECENT RE-DISCOVERY: COWS DO NOT GIVE MILK AND OTHER SECRETS OF LIFE Evaluating the year of 2020 will take years of reflection. How we react will make a big difference for our communities. It will take leaders with character for us all to succeed.
must milk it. You have to get up at 4 in the morning, go to the field, walk through the corral full of excrement, hold the tail, sit on the bench, place the bucket and do the work yourself. That is the secret of life, the cow does not just give milk; you milk her or you don’t get milk. There is a generation and large groups of our population that thinks that cows GIVE milk. That things are automatic and free: their mentality may be, if “I wish, I ask, and I obtain.” Being reminded of this simple story may be what we need as we journey forward in our communication with our government leaders.
The leaders we cherish are those who do not erode personal freedoms in terms of our public policy and legislative initiatives. We likely will find alliance with those as we journey forward. Finding ways to communicate remains the key along the journey. So, what does that have to do with cows not giving milk? Carrying the important messages of agriculture and maintaining the capacity of capital and credit in our rural communities, along with the industries supported therein, is the responsibility of all of us. It takes some special energy, as does all that you produce. This is true for public policy and legislation. It does not just happen, rather it is 25
Winter 2021 — Partners
crafted with language and communication, not silence. Steps to remain active in this education are critical and post pandemic communication will be important.
Give Milk. Most of you are likely familiar with the lesson, but it is time to re-discover and share to bring the confidence of our collective agriculture industry forward in 2021.
The experiences of 2020 have included a re-discovery of the essential nature of what agriculture does and the responsibility shouldered by producers. All the “safe trips” to the grocery store in 2020 were a reminder to the population that food production and systems are essential services, and just a footstep behind health care workers.
Parents have taught their children for years the importance of this truth that cows don’t give milk, now it may be time to take it our legislative leaders to empower them in their service to us. The secret of life may be found in the fact that cows do not give milk as illustrated with this story.
Yet, many of our leaders may not realize one of the fundamental secrets of life illustrated with an old story – Cows Do Not
“What are you saying?” you may ask incredulously. While the specific steps taken by farmers might be different today, the reality of the story remains: The cow does not give milk, you
We live in a world that oftentimes seems divided, and some may have been accustomed to getting whatever they want the easy way. There is no easy in agriculture production despite the joy of the effort. The story of life is not a matter of wishing, asking and obtaining. The things that one receives are the effort of what one does. Re-discover this truth and share the importance not only with your children, but with those that have chosen the path to serve us in crafting our public policy and legislation. Essentially it was clearly re-discovered that agriculture is essential in 2020, and now is the time to reinforce that message so the population and its representatives gain a better understanding of the work that goes into filling those grocery store aisles. Remember the secret of life: “Cows don’t give milk. You have to work for it.”■
PAC Progress:
BIPARTISANSHIP: FROM THE BEGINNING & STILL EXPECTED It is incredibly easy to be overwhelmed by the political news of the day, and the thoughts tend to be followed by yearning for bipartisanship. Outside of a doing a full analysis of the definition, a well-known display of bipartisanship will show the process of colliding ideas and reconciliation for a path forward. The Great Compromise of 1787 might be the most recognizable display of bipartisanship. Our young nation had gained independence and made its first attempt at a governance system with The Articles of Confederation, but it was viewed as unsatisfactory. As a result, the Constitutional Convention of 1787 convened to debate a new model of government. At the center of the debate was congressional representation. Under the Articles of Confederation there was equal representation and the small states were not willing to concede to some states’ desire for proportional representation. The debate was as hot as the summer that year, but in the midst of it, Roger Sherman proposed a proportional House of Representatives and equal representation Senate. This proposal harnessed the ideas from both sides of the issue and was still met with opposition because it was a compromise. Ultimately the question was called and by a
margin of one vote the Sherman’s proposal was adopted, and the United States was ushered into the next generation of the government. This illustrates the delicate process of democracy. Often the bipartisanship solution seems outrageous and is initially dismissed because it upsets all of the major parties. Then, as the idea gets debated, compromise leads the way as the political parties prioritize making the best decision possible, and sometimes years later the final decision is accepted as being undisputable. Today, this scene plays out every five years with the reauthorization of the Farm Bill and many times in between with stand-alone bills. Limited public resources and differing theories fuel debate and unsettle our rural communities and agriculture. This governance process through our elected leaders impacts decisions in our homes and businesses, and is reflected in the Farm Credit System and GreenStone approach to legislative engagement. It is recognized that change does not belong to any one party and instead bipartisan involvement is the key. As a result, the Farm Credit PAC, MI GreenStone PAC, and WI Farm Credit PAC provide financial support to legislators
regardless of political affiliation. Focus is placed on providing direct financial support to elected officials that have demonstrated support for rural communities, agriculture, and Farm Credit. The dollar amounts contributed reflect the positions of elected officials and their influence. Our rural communities and agriculture have much to share with our nation and world, but public policy impacts that ability. The United States has a long history of bipartisanship and today it is no different. Bipartisanship is essential to engagement and education prior to, and during, policy development. Continue to expect dynamic bipartisanship, and be involved in educating those that are determining the priorities for rural communities, agriculture, and Farm Credit. ■
WINTER PAC RECAP: • $23,000+ was disbursed • 50+ checks were delivered • Over 70% of checks were delivered through one-to-one meetings
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LIVE
Landing more acres
Connie and Chad Hotchkiss already loved their log-style home in Dundee, Michigan, nicely anchored on six acres. But they always aspired to acquire the woodlot and farmland that wrapped around their homestead. Country Living Customer Feature
Two things needed to happen: the landowner would need to be willing to sell, and the Hotchkisses would need to secure financing. While 2020 will be remembered by many as a year of chaos and
➡ Right: Connie and Chad Hotchkiss’ cabin home that now overlooks their newly acquired woodlot property.
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anguish, it brought joy to this family of four as both requirements aligned and they closed on 30 acres containing around 8 acres of woods, with the balance being farmland.
“My husband and son, Colin, are big outdoorsmen, so we’ve always wanted the woods that our current property contained just a pinch of,” Connie says. “Our neighbor owned a house and 35 acres. We take care of each other’s animals when one of us is out of our town, and he also knew I was a realtor. So, one day he calls us and says they’re selling and moving.” Being a well-known and established realtor for 22 years with Gerweck Real Estate, Connie had worked with GreenStone Farm Credit Services for years with clients buying rural, larger properties and farmland. “I have a long relationship with Brian Young with GreenStone – he’s my go-to-guy, especially anything with acreage. It was natural to reach out to him right away,” she explains. Connie and Chad had already been tossing around the idea of doing a refinance on their home because interest rates had dropped during the pandemic. “Luckily, this opportunity came up with perfect timing because Brian was able to refinance our home and incorporate the purchase as one big transaction,” she says. “We were able to purchase the bulk of our neighbor’s property for ourselves and then sell his house to a family friend who was moving back to Michigan from out of state.” Brian says, “Connie, who is a very good realtor, knows that with vacant land and the size of acreage – plus their existing house –
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My husband and son, Colin, are big outdoorsmen, so we’ve always wanted the woods that our current property contained just a pinch of...
GreenStone is about the only lending institution that would be able to get that done. That’s especially true given a significant portion of the land is tillable farmland. By folding it all together and using their home to offset some of the down payment on the land, they were also able to get a really good rate.”
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The process started in August and was closed Oct. 27. “It took a bit longer – a couple extra weeks – because we were waiting for the split approvals from the township for separating property from a larger chunk,” Brian says. Connie has now worked with GreenStone wearing two different hats. “Both professionally, and now personally, GreenStone has been wonderful to work with,” she says. “I was happy to work with them personally, not only because of all the work I’ve done with them as a realtor, but also because they really support the community, as well. They support 4-H programs and livestock projects, which my kids have been a part of. So, I think it’s great they promote and support country living and farming for the next generation.”
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In addition to hunting ground, the woods will help stoke their outside wood burner and they are pursuing options to best utilize the remaining property for possible agricultural uses. The Hotchkisses have lived in their current home for eight years. “It’s definitely our forever home now,” Connie says. ■
➡ Above: Chad and Connie Hotchkiss taking in the view from their cabin home’s front porch.
View a highlight real video at: www.greenstonefcs.com/CLW21
COUNTRY LIVING – OPEN FIELDS BLOG BRIEF
GreenStone publishes regular updates on our Open Fields blog. Check out some of the posts you may have missed at www.greenstonefcs.com. Must-Dos when Preparing for a Home Build
Ambassadors advocate for Michigan farms and food
Ready to build your dream home but not sure where to begin? Checking off these must-do items early in your home construction process will lead to a smoother and more successful build.
As a Michigan GROWN Michigan GREAT ambassador, employee Hailey Andres attends Farmers’ Markets to help connect consumers to their food.
Tax Incentives for Homeowners
Low interest rates make it more affordable to purchase your dream hunting land or build the forever house you’ve always wanted - but timing is everything! ■
The passage of the Tax Cuts and Jobs Act impacted some of the advantages homeowners historically received at tax time. This blog addresses some of the TCJA’s most important changes taxpayers have seen these last few years that you should be aware of when considering buying a new home.
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Country Minute: Timing Is Everything!
By the time January rolls around, I’m ready to spend more time at home. I use those first couple of weeks in the new year to recharge my batteries and to get caught up on home projects. Nevertheless, after a few weeks I begin to miss deer season and start getting the itch to get back outdoors. After months of being away from home more than not, my free time in the winter is pretty limited. So, over the years I have figured out ways to still enjoy time in the outdoors, but also make sure I’m home for dinner. Though I do like to take part in the occasional rabbit or predator hunt, I find that I end up ice fishing the most this time of year. It’s not that I’m an avid ice angler or even that I’m overly passionate about it, what I like most about it is that it’s simple and doesn’t have to take up a ton of time. For me, ice fishing is a good way to spend a few hours outside and have a chance at some excellent table fare if I do manage to land a few fish. Ice fishing can be a fun way to spend time with family. Whether that’s bringing one of the kids along, or just getting the pup some exercise, ice fishing can provide a way to scratch the itch to get outside and also spend time with the family. The gear needed for ice fishing is pretty simple as well. Yes, like any other outdoor hobby, you can spend a lot of money on fish finders, rods, etc., but you certainly don’t need to. All you really need is a good auger, a sled, a bucket, and some basic ice fishing tackle. For no more than a couple hundred bucks, you can have everything you need to enjoy some time on the hard water.
LIFE AFTER DEER SEASON By Jordan Browne, Host of Michigan Out-of-Doors TV Every fall I spend countless hours chasing whitetail deer. Whether I’m hunting myself, or filming someone else, I generally spend more than 75 days in the field throughout the fall and early winter. As the days get shorter, and the mornings get colder, my mind starts to wonder to all of the things I have put off around home in order to spend more time in the woods.
With lots of public access around the state, there are plenty of places to fish. Find a boat launch, load up your sled, and you can walk just about anywhere you want to! Lastly, it’s always a good idea to call your local bait shop to get up-to-date ice conditions to ensure the ice is thick enough. It’s also a good idea to fish with a friend, just to be safe! Nothing replaces deer season, which is probably a good thing for my marriage and work life, but I really do enjoy my time on the ice. If you’re looking for something to do this winter, you just might want to try ice fishing. It doesn’t take a ton of gear or time and it is a great way to spend time outdoors in Michigan and Wisconsin! ■ Partners — Winter 2021
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THE BEST WAY TO CLEAN OUT YOUR CLOSET…AND NOT HATE IT! In the midst of social distancing and working from home, perhaps you have noticed more about your space – like overfilled closets. Cleaning out your closet may seem like a daunting task, especially to transform your closet into a clean, well-organized space.
if not cleaned. Take advantage of the empty space and spend a few minutes doing a deep clean. Get rid of the dust mites and clutter to look and feel better!
1. Play your favorite song and turn the volume up!
4. Throw away, donate, or keep.
In order to ready your closet, you must ready your mindset.
If you haven’t worn a piece of clothing in over a year, most experts will say it is time to let it go. Donating your old clothes will truly make you feel good about yourself! You are cutting the clutter, assisting others, and helping the environment at the same time.
if it has been a few months (or years). Here are a few simple steps
Picture that end result: a beautiful closet with just the items that you frequently wear. Music is scientifically proven to help your mood, so turn on the radio and get to work! 2. Take EVERYTHING out. This step often gives people the most anxiety, as it can create a big mess. However, it allows you to see the inventory to be able to effectively evaluate what you really need. This will also help you brainstorm the perfect organizational schema. 3. Dust, sweep, and vacuum. Closets are a hotspot for dust. Shoes, rarely used objects, carpeting, and shelving can lead to a large amount of dust mites
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5. Color code! First sort by style – short sleeved, long sleeved, etc. – then organize your wardrobe by color to make it easy to locate the clothes you are looking for. Sort the colors by the rainbow: red, orange, yellow, green, blue, indigo and violet. It is an easy pattern to follow and you get to decide the best place to put your black, white, brown and gray clothes! ■
WARNING SIGNS OF MENTAL ILLNESSES IN KIDS Keeping our immune systems strong is imperative in fighting off colds, flu and COVID-19. Eating nutritious foods and exercising regularly, however, are not all that is necessary for a healthy lifestyle. Mental health is vital to personal well-being, as it affects our thoughts, feelings, and actions. It is necessary in order to minimize stress levels and better relationships. You may be aware of the common warning signs of mental illnesses in adults, such as extreme tiredness or mood changes, but may not be able to name premonitions of a mental health disorder in a child. Signs that your child may have a mental illness include: 1. Difficulty concentrating 2. Sudden, immense fear for no reason 3. Refusing to eat 4. Involvement in multiple fights 5. Retreating from social interactions
6. Trouble sleeping
Sources
7. Avoiding school
Mental health conditions in children can be difficult to identify. Keep an eye out for these warning signs to help your child.
8. Abrupt changes in academic grades 9. Common headaches and stomachaches 10. Weight loss If these signs are familiar behavior seen in your child, you can play an important role in supporting his/her treatment. Consider researching stress management techniques, working with your child’s teachers to ensure there is necessary support, finding ways to keep your child relaxed, and making it a habit to applaud your child’s strengths. Most importantly, however, contact a mental health professional for a specific diagnosis and additional advice. ■
Mental illness in children: Know the signs Mayo Clinic 11 Simple Signs a Child May Have a Psychiatric Disorder | Child Mind Institute
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Commodity Cuisine... Juicy Smoked Turkey Breast Ingredients: Turkey & Herb Butter • 2 cups applewood or cherry wood chips • 1 5 to 7 pound whole turkey breast • 9 tbsp unsalted butter, softened • 2 cloves garlic, minced • 1 tsp each fresh diced oregano, thyme, rosemary, and sage • 2 tsp Dijon mustard • 1 tsp kosher salt • ½ tsp freshly ground black pepper • ¼ tsp crushed red pepper flakes • 1 disposable 13x9-inch aluminum foil pan • 2 cups apple juice or cider Brine • 3 quarts cold water • ½ cup kosher salt • ¼ cup white sugar Directions: Brine 1. In a large container, combine water, salt and sugar. Whisk until the salt and sugar dissolve. Set the turkey breast in the water (add more water, if needed, to completely submerge) and refrigerate 8-12 hours.
2. Remove the turkey from the refrigerator 45 minutes before cooking, and pat it dry, inside and out, with paper towels. 3. In a small mixing bowl, combine butter, garlic, oregano, thyme, rosemary, sage, mustard, salt, pepper and red pepper flakes. 4. Using your fingers, carefully separate the skin from the breast meat underneath. 5. Spread 3 Tablespoons herb butter under the skin of each breast and the remaining 3 Tablespoons butter over the outside of the breasts. Use 2-3 toothpicks per breast to secure the skin to the breast (along the edge of the breast). Securing the skin with toothpicks prevents the skin from shrinking during cooking. 6. Soak the wood chunks or chips in water for 30 minutes while waiting for the coals to heat. If using wood chips, after soaking them, place them in a packet made with heavy-duty aluminum foil. Cut 3-4 slits into the top for the smoke to vent. Grill 1. Remove the top cooking grate and place the foil packet of wood chips on the primary burner. Replace the cooking grate and turn all burners to high. 2. Cover the grill and heat until hot and the wood chips are smoking. This should take about 1a5 minutes. 3. Reduce the heat to medium-low and adjust burners, as needed, to keep the grill’s internal temperature between 325°F-350° The total cooking time could be l½-2½ hours. 4. The turkey is done when the internal temperature of the turkey registers 162°F-163°F on an instant-read thermometer. The skin should be amber colored and beautiful. 5. Transfer the turkey to a cutting board, tent with foil, and allow it to rest 20-25 minutes before slicing. 6. Carve and serve. ■ Recipe courtesy of Michigan Allied Poultry Industries
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LEARN
CROP INSURANCE NEWS:
CONTRACT PRICE ADDENDUM The Risk Management Agency offers a contract price addendum that would allow a producer who receives a contract price for their crop to receive a crop insurance guarantee that is more reflective of the actual value of the crop. Under the addendum, insured producers would have the ability (where available and by choice) to use their
personal contract price as their price election, or to use the existing crop insurance price election. If you grow specialty crops under contract and are interested in possibly using your contract price to set your crop insurance guarantee, make sure to ask your crop insurance specialist about the new contract price addendum. ■
DRY BEAN PREVENTED PLANTING COVERAGE LEVEL CHANGES
insurance specialist know and they will make sure your policy is renewed using the correct identifying numbers. These records need to be updated before the March 15th deadline.
Prevented Planting Coverage levels for dry beans has been reduced from 60% coverage down to 50%. PP coverage levels have changed for many other crops in recent years. See your agent for the most current levels and options for PP coverage. ■
PERSON TYPES & IDENTIFICATION NUMBERS To better accommodate data reconciliation between the Farm Service Agency & RMA, there have been some changes made to the social security number and employer identification reporting requirements for individuals, estates and trusts. If you have recently made a change in how an entity has been set up, let your crop
POWER OF ATTORNEY (POA) AND SIGNATURES Crop insurance documents requiring a signature must be signed by an authorized person. The Crop Insurance Handbook
says that for a spouse or others to sign for the insured, they must be authorized by a POA or other legally sufficient document. Even if the person is listed as an SBI on the application. Signature statements on the Application or Policy Change Form can serve as a legally sufficient document. For specific details, please consult your crop insurance specialist. ■
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Generations of Success Each morning on Grabemeyer Farms in Dowagiac, Mich., brothers Don and Dave Grabemeyer gather with their sons at the farm’s office to discuss their daily plans and goals. Embracing the history of the sixthgeneration farm, the back wall of the office is lined with several large aerial photographs of the property. Crop Insurance Customer Feature
When established in 1860, the original Grabemeyer Farms was just 122 acres and consisted of few acres of grapes, row crops and a variety of livestock. Fast forward to today, over a century and a half later, the
family’s operation now harvests over 2,200 acres of corn, soybeans, wheat, grapes, apples and hopefully next year, peaches. Without ever having tasted their grapes before, one bite and you’ll quickly recognize
the sweet flavor as all 225 acres of grapes are sold to Welch’s grape juice. The 70 acres of apples are sold to Michigan fresh packagers and processors to be distributed to places like McDonald’s for their kid’s meal apple slice packages, among others. While it’s possible you’ve had one of their apples in past years without realizing it, it’s not likely you will this year due to an early freeze taking out nearly two-thirds of their apple trees. As for their peaches, 2020 was their first expected year to harvest the 11 acres of peaches and like many of their apples, mother nature had a different idea in mind. Fortunately for the Grabemeyer’s, 160 years of farming in Michigan doesn’t come without generations of knowledge, a deep understanding of the importance of risk management and having a strong team to turn to. On that team, in addition to Don and Dave, is Don’s son, Michael, Dave’s son, Brian, and their longtime team of experts and friendly faces at GreenStone Farm Credit Services, like Crop Insurance Specialist Earl Zelmer from the Berrien Springs branch. “We enjoy GreenStone and like doing business with Earl,” Dave says. “When Brian and I visit with Earl, we pretty much have an idea of what we’re thinking and our plans, but in all honesty, we turn to Earl to help make our farm’s final decisions and plan.” Earl, who has enjoyed working with the Grabemeyers for nearly a decade, has quickly became a trusted voice on their farm and a resource they use often when planning future changes to the farm. In addition to the farm’s diversity of crops, Earl helps them manage risk by offering unique crop insurance solutions to fit their farm’s need, preparing them for unexpected weather or crop loss. “The apples froze bad this year after the cold temperatures in early May. It was our worst apple crop in 41 years,” Dave explains. “When you have a crop, you don’t mind paying the premium. This next year, because we didn’t have a crop, is when it will be nice to have that money available ➡ Left: Brian, Dave, Don and Michael Grabemeyer gathered in front of their farm sign.
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from our crop insurance.” “Earl knows what to do and what our farm needs,” Brian adds, who works closely with his father and Earl on crop insurance planning for the farm. “He probably knows our farm just as well, if not better than we do!” While there have not been a shortage of new ideas or changes on the farm over the last century and a half, one thing has remained constant: Grabemeyer Farms turning to Farm Credit to help make it all happen. Don and Dave’s father began working with Farm Credit, formerly known as PCA, in the late 1960’s to secure reliable credit for their farm. When managing a 2,200-acre family farm, convenience is key and time is money, and the Grabemeyers credit GreenStone’s variety of farm services, financing, crop insurance and tax and accounting, to helping them save time and have confidence their farm is in good hands. “It’s really convenient that our lender can do our crop insurance and our (accounting) books,” Michael explains, who is now the sixth-generation to
➡ Above: Dave, Brian, Don and Michael Grabemeyer share farm stories of the past on the farm’s founding property.
manage the farm. “And they’re all good people and easy to work with!” They are thankful their Berrien Springs branch has a trusted team they can turn to and is a one-stop shop for all their farm needs. “That is a big plus,” Don adds. “Elizabeth Waldschmidt does our taxes, Earl does our crop insurance and Jeffrey Ginter does our loans, all through the Berrien Springs branch. It’s very nice to have all three services in one place so they can help us with our day-to-day and year-toyear decision making.” Having a local, trusted team of experts at GreenStone assist with multiple services allows them to put more focus on their daily operations and activities so they can continue passing a successful farm to the next generation of Grabemeyers. ■
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It’s very nice to have all three services in one place so they can help us with our day-to-day and year-to-year decision making. View a highlight real video at: www.greenstonefcs.com/CropW21
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EXCLUSIVE RISK MANAGEMENT MEMBER BENEFIT AVAILABLE GreenStone is proud to introduce the new Optimum crop insurance analyzer tool available in late January. This new resource, available to members renewing or purchasing crop insurance through GreenStone for the 2021 growing season, will review coverage options available for your operation to generate a customized, data-driven recommendation for your specific needs and budget.
Optimum’s easy-to-read reports will simplify the selection of the ideal coverage for your budget, to ensure your business will achieve break-even or better during even the most challenging growing conditions. To learn more about this exclusive benefit available soon for our customers, visit www.greenstonefcs.com or contact your local crop insurance specialist. ■
ACCOUNTING & BILLING
Crop Insurance Calendar... JANUARY
15
Fruit Acreage Reports / Yield Reports and Pre-Acceptance Worksheets Due
MARCH
15
Final date to sign-up or make changes for a spring 2021 crop insurance policy. If you are interested in changing the coverage level, type or need to add a crop, please call your crop insurance specialist to review your options. Any and all changes need to be completed by the March 15th deadline! If a signed application is not returned, your policy will automatically renew at the same level you insured at during the previous year.
APRIL
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2020 harvested crops. Before you get busy in the field this spring, be sure to have your production reports completed, signed and submitted before the deadline.
* Please note some dates can vary by county, especially in Wisconsin. Please check with your crop insurance specialist for specific dates if you are unsure.
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Premium bills were due before October 1, 2020. Starting with the earliest Premium Bill date, payments are applied as follows: A) Any unpaid finance or interest charge, B) Unpaid administrative fees, and C) Unpaid premiums. Please keep in mind that accrued interest on uncollected premium is attached, according with the terms of the Standard Reinsurance Agreement, and CANNOT be waived by the agent or AIP. If you cannot pay your premium before the March 15th Debt Termination Date, contact the AIP directly to set up a payment plan. Otherwise, you will not be eligible for crop insurance or any other federally subsidized programs. ■ MULTI-COUNTY ENTERPRISE UNITS RMA now allows a single Enterprise Unit (EU) structure that covers two adjoining counties. It is only available when authorized on the actuarial documents for crops in which Revenue Protection (RP) is available. One county must individually qualify for EU as the primary and the other county must not qualify for EU. MCEU must be elected on or before the SCD and electing MCEU does not automatically make the county eligible MCEU. ■ EARLY / LATE PLANT DATES Early and late plant dates may have changed and vary by location within the State. Be sure to contact your GreenStone crop insurance specialist to
get the specific dates for your area. It is important to note that crop acreage planted before the early plant date is not eligible for replant payments but will still be eligible for insurance coverage. The insurance guarantee is not impacted as long as producers follow good farming practices. Crops planted after the late plant date during the late plant period will also have reduced coverage. ■ SUGAR BEET POLICY PROVISIONS The end of insurance period has been extended to December 5 and the stage guarantees have been removed. The production guarantee will now be expressed in pounds of raw sugar. This is calculated by multiplying the tons of beet production by 2,000, and converted to pounds of raw sugar by the average percentage of raw sugar to determine the production to count. This conversion began with the 2018 production, and historical years will be adjusted by the AIP on your APH Database. There is also an early harvest factor to recognize for the potential lower weight and sugar content of early harvested beets. ■ ORGANIC CROPS As a reminder, the USDA Risk Management Agency 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. ■
Tax Calendar... JANUARY
15
Individuals make a payment of your estimated tax for 2020 if you didn’t pay your income tax for the year through withholding (or didn’t pay in enough tax that way) via Form 1040-ES. Farmers and fishermen pay your estimated tax for 2020 using Form 1040-ES. If you pay your tax in full, you have until April 15 to file your 2020 income tax return. If you don’t pay your estimated tax by January 15, you must file your 2020 return and pay any tax due by March 1, 2021, to avoid an estimated tax penalty.
FEBRUARY
1
Form 1099 due to recipients of certain payments made during 2020 for interest, rent, contract labor, veterinarian services, etc., including the new 1099-NEC Form. Provide employees copy of Form W-2 for 2020. Farm employers file Form 943 to report social security and Medicare wages, and withholdings. Non-farm employers file form 941 for the 4th quarter to report social security and Medicare wages, and withholdings. Employers file form 940 for federal unemployment tax.
MARCH
1
Payers must file Forms 1099 and 1096 (other than 1099-NEC, which is due February 1) with the IRS. If these forms are e-filed, the deadline is extended to March 31.
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S Corporations file a 2020 calendar year income tax return (Form 1120S). Provide each shareholder with a copy of Schedule K-1. If not able to file, file Form 7004 to request an automatic six-month extension. Partnerships and LLC’s taxed as a partnership file a 2020 calendar year return (Form 1065). Provide each partner with a copy of Schedule K-1. If not able to file, file Form 7004 to request an automatic six-month extension.
APRIL
15
Individuals file a 2020 income tax return (Form 1040) and pay any tax due. If not able to file, file Form 4868 to request an automatic six-month extension. Any tax due must be paid with the extension. First quarter estimate is due for 2021 for individuals paying estimated taxes. C Corporations file a 2020 calendar year tax return (Form 1120) and pay any tax due. If not able to file, file Form 7004 to request an automatic six-month extension. Any tax due must be paid with the extension. C Corporations deposit the first installment of estimated income tax for 2021.
SUPPORT PROGRAMS MAY EFFECT 2020 RETURNS The government stepped in as a result of the impact of COVID-19 on our economy and farmers received aid in the form of PPP, CFAP 1, CFAP 2, EIDL Advances, and various other grants in 2020. Some are taxable, some are not, some may or may not be – it’s confusing! Farmers need to meet with their tax advisors to see how the year shaped up because 2020’s government support may have significantly impacted their taxable income.
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Unlock the savings. Today, producers are shifting processes to match the quick pace of change within the industry. GreenStone’s tax and accounting team is responding by providing efficiencies that allow farmers to remain focused on the day-to-day needs of their operations. Tax and Accounting Services Feature By Chad Zagar, GreenStone VP of Managing Director of Financial Services
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Current GreenStone tax customers have put their trust in the knowledge and expertise of GreenStone’s tax professionals. As your partner, we are now offering everyone the opportunity to save when you expand your financial services to include our tax preparation, accounting or payroll support. The more services you add, the greater the time and money savings you’ll see! Your tax accountant is ready to answer your questions about this exclusive offer. Visit www.greenstonefcs.com/taxsave or contact your GreenStone tax specialist today.
1, 2, 3 Less Stress
You continuously make changes to keep pace within the agricultural industry. GreenStone’s tax and accounting team is responding by providing affordable, accurate efficiencies that allow you to remain focused on the day-to-day needs of your operation:
Do More, Save More
Save 10 percent when you use two of our services (tax preparation, accounting or payroll), or save 15 percent when you use all three services (tax preparation, accounting and payroll). • Tax Planning – We start by mapping out a tax planning strategy that can help make the tax laws work to your advantage. When it comes time to file your tax return, we will review all of your tax saving options. With our knowledge of your personal financial situation and our tax expertise, you can rest assured we will minimize your taxes and maximize your profits.
1. T here’s no need to keep up with technology; no need to purchase a new computer or expensive accounting software – GreenStone tax, accounting and payroll specialists understand agriculture (it’s all we do!) and we provide everything you need to keep your business running accurately and in regulatory compliance.
• Accounting Services – Our team of over 30 financial services experts provide full farm accounting services and support, or specific services such as general recordkeeping analysis, Farm Chart of Accounts reporting and classification of expenses, and financial forecasting and budgeting. Our services provide you with quicker turnaround and preparation of all year-end forms, payroll documents, and tax returns.
2. O utsourcing record-keeping to your trusted tax preparer can provide your enterprise with operational harmony. If a family member is currently handling hours of paperwork, switching to a professional can reduce stress, improve relationships and maintain consistency during transitions.
• Payroll Services – Our experienced tax and accounting specialists ensure all complex governmental payroll laws and regulations are being met. Considering the time savings and possible penalties for noncompliance, outsourcing payroll can be a way to save money and gain efficiencies in other areas. See example below.
SERVICE
3. U sing GreenStone’s tax and accounting services also allows you to move quickly on financing when sudden farm expenses make a loan necessary. Well-maintained records can lead to lower lender fees and/or interest rates, and immediate access of previous paperwork by your lender means faster processing. Let us help! Contact us at 800-444-FARM today to start saving time and money! ■
QUOTE
TWO SERVICES
TWO SERVICES
THREE SERVICES
$800
$800
$800
$800
Recordkeeping
$1,200
—
$1,200
$1,200
Payroll services
$1,800
$1,800
—
$1,800
10%
10%
15%
$2,340
$1,800
$3,230
$260
$200
$570
Tax return preparation
Discount Total Costs Savings
* Customers save over 12 months when adding accounting and/or payroll services. Total savings will vary by customer. Some exclusions apply. Offer valid through December 31, 2021.
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Tech Tip: ‘ T is the season, to manage your passwords like a pro. Matthew Cosgrove GreenStone VP of Information Security
Security data breaches are nothing new and seem like a common occurrence. In fact, they are more common than ever; most users do not even pay attention when they hear on the news that another company has suffered a data breach. The landscape for cyber-attacks is evolving due in large part to COVID-19 and the current pandemic. More and more users are shifting to remote work and learning, leaving them more venerable than ever to sophisticated cyber attacks. In 2020 alone, there was an estimated 16 billion records of information exposed (Dutta, 2020). The information exposed includes usernames, passwords, and/or personal identifiable information (PII) like social security numbers, driver license and in even banking information. This information is then bought and sold on the “Dark Web.” The dark web is a World Wide Web that exists only by using specialized web browsers. The main use of the dark web was to keep user activity anonymous and private – this has helped foster the illegal activity that primarily takes place on its network. With the sheer number of data breaches and records exposed, it is safe to assume that you have already been victim in at least one of these breaches. As a recent example, Marriott disclosed a security breach that effected the personal identifiable information of 5.2 million hotel guests who used their loyalty application (Lyles, 2020). And there have been numerous other situations, just like this, with information exposed through fraudulent efforts.
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The problem for many of us is if one of our passwords is compromised, the bad guys have gained access to every site that shares that password. Many of us say we do not reuse passwords, however a recent Google survey found that at least 65% of users reuse passwords across multiple sites, and in some cases, all their sites (Google, 2018). Microsoft released another similar study that says there is a total of 44 million users that reused passwords and at least 30% of their modified passwords could be cracked within just 10 guesses (Cimpanu, 2018). As we consume more services online the number of usernames and passwords we must manage continues to grow. With the holiday just past, now is a great time to take control of your digital footprint and follow these steps to secure your online accounts. •C reate unique passwords for every site you register an account with – NO EXCEPTIONS • P asswords should be phrases or sentence based and at least 15-characters in length. • E nable multi-factor authentication (MFA) on any site that offers it – Microsoft said
that enabling a MFA security measure for a Microsoft account blocks 99.9% of all attacks (Cimpanu, Microsoft: Using multifactor authentication 99.9% of account hacks, 2019).
authentication and functionality, and include the ability to access and synchronize your password across all your devices, and in many instances also provide the ability to autofill your usernames and passwords.
It sounds easy, right? Just create a unique, strong password for every site you access – what’s the problem? The problem is if you are like me and cannot remember what you had for dinner yesterday, you need help. This help comes in the form of a password manager application.
Password managers like 1Password and LastPass make it so you only must remember one password - just the password to your Password Manager. So, take time this winter to take advantage of the increased security posture and begin to use a password manager for your digital footprint. ■
Password Manager Password manager’s make it easy to take control of your usernames and passwords. There are many of these products available Google, Apple, and Microsoft offer free password managers natively within their operating systems. While better than reusing passwords, these solutions have their limitation – Apple’s Keychain does not work on PCs, and Microsoft’s and Google’s password managers only work within their web browsers.
Sources: Cimpanu, C. (2018, December 5). 44 million Microsofot users reused passwords in the first three monthsl of 2019. Retrieved from ZDNet
3rd-party password managers applications like 1Password and LastPass provide the additional security controls like Multi-factor
Lyles, T. (2020, April 1). Marriot discloses another security breach that may impact over 5 million guests.
Cimpanu, C. (2019, August 27). Microsoft: Using multi-factor authentication 99.9% of account hacks. Retrieved from ZDNe Dutta, P. (2020, August 1). 5 Biggest Data Breaches of 2020 (So Far). Retrieved from Security Boulevard Google. (2018, December). Online Security Survey - Google / Harris Poll.
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3515 West Road East Lansing, MI 48823
Winter feature highlight... Connie and Chad Hotchkiss already loved their log-style home in Dundee, Michigan, nicely anchored on six acres. But they always aspired to acquire the woodlot and farmland that wrapped around their homestead. Read more on page 27.
