Partners Winter 22 by GreenStone Farm Credit Services

Promoting the business success of our customers and the rural community

GreenStone FCS

GREENSTONE STORY: 2022 Patronage CultivateGrowth New YBSF Program

YBSF SPOTLIGHT: BEN KASIK

Taking Every Opportunity

Winter 2022

CROP FEATURE: Optimum Analyzer + Market Outlook + Tax Tips

WINTER 22 5 YBSF Feature. Ben Kasik is using a variety of resources to continually educate himself about farming, including mentoring, conferences, and business planning support.

23 GreenStone Story. The CultivateGrowth program provides expanded support for the niche needs of diverse young, beginning, and small farmers.

31 Country Living Feature. Tom and Robbin DeMeester had been actively looking for a large parcel of land with trees for some time before they found their spot.

39 Crop Insurance Feature. Mark D. Zacharda grew up on Zacharda Farms, which was owned and operated by his dad and uncle.

43 Tax Feature. With no big tax changes for 2022, here are some observations and best practice recommendations for you as we head into tax season.

3 CEO Comments. President and CEO Dave Armstrong reflects on last year and shares his hopes for 2022. 11 Guest Column. Regular family meetings contribute to the longevity of family-owned businesses. In just a few hours a year, you can create a space for family to build energy, engagement and commitment. 13 Sustainable Agriculture Feature. Steve and Kris Van Haitsma are committed to sustainability and environmental responsibility. 17 Market Outlook. Throughout the past year the U.S. economic recovery has been remarkably strong coming out of the COVIDinduced recession of 2020.

37 Ways to Stay Active During Winter Months. The hardest time of year to stay active is definitely during the winter but we found some fun ways for you to get outside of your comfort zone and try some new ideas. 45 C ybersecurity Tips. Here are four tips to make sure your online shopping trips are safe and secure. 9 YBSF Resources 10 Agriculture Blog Brief 16 Year-end Financial Review 20 Member News 22 Calendar of Events 25 Behind the Scenes 26 Pause for Applause

27 Patronage on March 17 The pot of gold just got sweeter…a record $115 million will be returned in checks to our GreenStone members on Patronage Day! 28 Director's Perspective. Troy Sellen shares advise for those looking to break into agriculture. 29 Legislative Matters. Agriculture business requires a multiple discipline professional effort to be successful and sustainable.

24 Candid Comments

35 Country Living Blog Brief 36 Commodity Cuisine... Beef Barley Soup

35 Enjoy the Natural Beauty of Winter. The season offers plenty of incredible experiences.

As a Mom, the new year comes with a multipurpose sigh – a tired sigh of exhausted appreciation from making it through the magical holidays (and three household birthdays sandwiched in between); and an excited sigh full of hope and anticipation as we consider all the possibilities the next 365 days may hold. At GreenStone, we’re also giving a hearty sigh, and it too comes with multiple feelings. But the louder, more audible one is one of a proud expectation, because we have a pretty good understanding of what the next 365 days will hold for our members – at least for what we can control – and there is a lot to be eager about! Let’s start with the rollout of GreenStone’s CultivateGrowth program – a renewed and improved way of serving the young, beginning and small farmers in Michigan and northeast Wisconsin (page 25). Then move quickly to page 27 for the official announcement of the association’s 17th Patronage Day, when GreenStone members will get back their portion of a record $115 million pot of gold dividends in checks on March 17th. Throw in the anticipation of the new homes that’ll be bought and built (new home on acreage for the whole family, page 31, a fresh start on the farm with the growing season just months away (YBSF mentee, page 5), and the endless possibilities thanks to the support and coverage available through it all (crop insurance proponent, page 39 – there’s so many reasons to take a deep breath and step contently, expectantly into 2022. This Partners magazine only covers 46 pages of them! So here’s wishing you many happy and prosperous moments in 2022. Happy reading as we all embrace an exciting new year! – Melissa

38 Crop Insurance News 41 Crop Insurance Calendar

This newsletter is published quarterly for the customers of GreenStone Farm Credit Services.

42 Optimum Crop Analyzer Tool

Editorial Cassie Bowman Amber Echlin Melissa Rogers

44 Tax Calendar 34 Guest Column. Jimmy Gretzinger with Michigan Out-of-Doors discusses the idea of changing Michigan's gun opener to the second Saturday of November.

Publisher’s Note:

Alaina Schrauben Carla Wardin

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

Art & Design Hailey Andres William Eva

CEO Comments:

New year, New Opportunities A year ago, I was confident when I wrote these comments that by 2022 Covid would have been vanquished, supply chain problems would be a thing of the past, inflation would be under control, and the agricultural economy would be strong. So much for my predictive abilities. One out of four is a bad track record, but at least I got the ag economy one mostly right! 2021 We have all seen the news reports about the latest Covid variant. Covid has truly proven to be a formidable foe and is at the root of many current challenges. Unfortunately, it will likely be with us in some way, shape, or form for years to come. Fortunately, the ag economy fared well despite the head winds it, and most of the general economy, faced through much of 2021. This past year’s net farm income is currently projected to increase by 23.2% over 2020 or 18.7% in inflation adjusted terms. That’s a long way from the 40% plus increase in 2020 over 2019, but not bad considering a nearly 39% drop in “direct government farm payments” in 2021 from 2020. As we talk with our members and begin reviewing

Winter 2022 — Partners

their financial statements, the overall results support these national projections. Better yields across our territory for nearly all cash crops including sugar beets, plus stronger commodity prices for both crops and protein (including dairy) resulted in relatively strong earnings for much of our portfolio. As I’ve noted before, some of the specialty crops didn’t fare quite as well due to frost and freeze conditions yet, overall, 2021 was a strong year for most of our members. In fact, GreenStone’s credit quality, which is a measure of risk in the portfolio, was at nearly all-time highs (high is good!) and further supports the overall financial success of our members. Loan volume classified as “acceptable” (few to no credit weaknesses) improved from 91.5% at the end of 2020 to 94.8% as of November 30, 2021. Accrual Loan delinquencies remained at an exceptionally low level of 0.17% at the end of 2021. Finally, and probably most notable, was our ability to reverse approximately $13 million of loan loss provisions taken in prior periods because of improved credit conditions. This increased net earnings and bolstered our ability to pay another record setting level of patronage to our members.

“

Of course, as you have come to expect, your success translates into our success and has once again allowed GreenStone to increase its patronage payment to members from $105 million in 2021 to a new record of $115 million for 2022! As you might have guessed with stronger net farm income, GreenStone’s loan growth was lower in 2021 than 2020 as members used more of their cash to finance everything from working capital needs to machinery and even real estate purchases. Other factors that also had an impact included winding down the PPP loan programs and stabilized credit markets. Still, loan growth of 7% exceeded our business plan target of 5%, yet fell short of the near record high of 12% recorded in 2020. Other areas of our business that excelled in 2021 included crop insurance coverage (including DRP and LGM) along with increased activity with our tax and accounting services. GreenStone has been a preferred source of sound risk management advice and services for over 50 years and reached just over a 21% market share, which is up 10% over the last five years. This market share represents 2,500 insureds, 7,200 policies, 1.2 million acres, and almost $1 billion in liability for all the insurance products we sell. Not to be outdone, GreenStone’s tax and accounting team prepared approximately 5,800 tax returns in 2021. Our team has also grown, comprised now of approximately 30 full time staff, which balloons to approximately 50 with temporary workers and interns added during the busy tax season. The department has over 500+ years of combined tax preparation and accounting experience, including 6 CPAs and numerous other EAs (Enrolled Agents), serving our farm customers. So, if you have never thought of GreenStone as a premiere crop insurance agency and accounting firm, think again and come check us out! Of course, as you have come to expect, your success translates into our success and has once again allowed GreenStone to increase its patronage payment to members from $105 million in 2021 to a new record of $115 million for 2022! Please turn to page 27 of this issue to read more about these cooperative earnings being returned to our members on March 17! Although it’s taking place on St. Patrick’s Day, let me be clear – it’s not luck, it’s partnership, and partnership pays when you’re a member of our cooperative!!! Our patronage program has been providing unmatched value to our members since 2006, returning to our members a combined $720 million of earnings over the 17 years! What other financial institution does that for its customers?

still lower direct government payments than were received over the last two years. So, what does this mean to you, our members? It means one thing: you can have peace of mind about the stability and dependability of your cooperative! GreenStone’s consistently strong financial performance and outstanding service provides you with the resources that are critical to compete in an increasingly volatile and complex industry. No matter what, GreenStone is here to provide you with a competitive, dependable, and responsible source of credit and financial services to meet your ever-changing needs. And, we’re here to provide that same support and service to the future of agriculture. GreenStone’s newly refreshed and expanded CultivateGrowth program is uniquely designed to support the diversity of today’s young, beginning and small farmers. Outlined on page 23, the multiple aspects of this program provide funding, networking, education and financing to serve their unique needs. Your cooperative is rooted in knowledgeable team members who are here to listen to your unique situation and provide timely and professional support with a smile! In times of rapid change, new market entrants, uncertainty, increasing complexity and risk. Isn’t it nice to know you have the GreenStone team on your side? Thank you for your business! All of us at GreenStone know you have choices for your financial services provider and are humbled and grateful you have chosen us! Best wishes for a safe and productive harvest and thank you for your business! Please feel free to reach out to me any time at if I can ever be of assistance. Best wishes for a healthy, safe, and productive 2022!

Dave Armstrong

2022

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

Shifting gears to 2022, the current net farm income forecast from the Food & Agricultural Policy Research Institute (FAPRI) at the University of Missouri predicts 2022 net farm income to fall to $99 billion from its predicted 2021 level of $116.8 billion. The exact numbers here are not the point, but rather the assumptions of slightly lower receipts (1% or less) AND higher input costs (3.2%) for likely EVERYTHING, along with

Partners — Winter 2022

GROW

Young, Beginning, and Small Farmer Feature

TAKING EVERY OPPORTUNITY Ben Kasik is using a variety of resources to continually educate himself about farming, including conferences, networking, and business planning.

He farms with his grandparents, Jerry and Carolyn, in Henderson, Michigan, where they grow corn, soybeans, and wheat. He began farming full-time in 2018. “I didn’t know I wanted to farm fulltime until I went away to college at Michigan State,” Ben said. “Being away that first month was so awful. I couldn’t wait to come home and help. All through the fall harvest I drove home almost every day after class to help – I couldn’t stand not being there.” Ben graduated with his bachelor’s degree in crop and soil science and brought back his new knowledge to his home farm. His main mentor and teacher on the farm is also his coworker – his grandpa Jerry. “My grandfather has a vast amount of knowledge and wisdom he acquired from farming his entire life,” Ben said. “He’s a well-rounded farmer, and he’s good at everything, like fixing machines, agronomy, working with View a highlight reel video at: www.greenstonefcs.com/YBSFWinter22

Winter 2022 — Partners

people. I’m so thankful I can work and learn alongside him.” Ben went to his financial services officer Nicole (Nikki) Burke in the spring of 2018 to obtain an operating loan, and she not only assisted him with financing, but also introduced him to other GreenStone services. “Every time I have a financial question or a business idea, I know I can call Nikki anytime and get help,” Ben said. “She’s always willing to give me good financial advice, and if she doesn’t know something, she points me to resources to find the answer.” Nikki works with a number of young, beginning, and small farmers out of the Corunna branch. In her 11-year career with GreenStone, she makes it a point to reach out to her customers to share about available programs. “I care a lot about my customers, and I want to see their businesses succeed and grow,” Nikki said. “Putting the customer first is the most important

➡B en Kasik was matched with mentor Eric Blaine of Blaine Farms in St. Charles, who also is a cash crop farmer. Eric brings his 21 years of knowledge to the mentorship.

Partners — Winter 2022

thing to GreenStone, and everyone on the team truly cares about making the experience positive for our customers.” Mentorship Program

One of the programs she suggested trying was the GreenStone mentorship program, which pairs new farmers with more experienced producers to share knowledge and help equip them for the future of the industry. Ben was matched with mentor Eric Blaine of Blaine Farms in St Charles, who also is a cash crop farmer. Eric brings his 21 years of knowledge to the mentorship. “He’s a really sharp young man,” said

Winter 2022 — Partners

Eric Blaine. “I like working with him. He already has a great understanding of the industry, and he just wants to fine tune his skills, which is really admirable.” Since Ben has the leadership of his grandpa, he already has a great mentor on the farm, but like most business owners, he enjoys talking with people who have the same job. “It’s so interesting talking to Eric, because some of the things he’s doing are so different,” Ben said. “If you take three farms within ten minutes of each other, even if it’s the same crop, everyone is doing things a little bit differently. I like bouncing

off ideas from him to get his completely different perspective.” “That’s a big part of farming,” he added. “You can never know enough. I asked my friend Tony Motz, also a farmer, why he always talked to everyone, and he said – you can always learn something from everybody.” Grant Program

The next program Ben has taken advantage of is the grants from GreenStone. Each year, GreenStone commits $40,000 to young, beginning, and small farmers for the grants, which they can use toward agricultural programs and events,

GreenStone services like accounting and tax services, and resources like business and farm consultants. Ben has made use of the grant multiple times. For example, he’s attended conferences like the Great Lakes Crop Summit, attended industry meetings, and had the GreenStone tax and accounting department prepare his tax return. GreenStone has a full array of tools and services to support farmers like Ben, including new tools as a part of GreenStone's refreshed CultivateGrowth program (see page 25). “Being a young farmer, it’s nice to have someone help,” Ben said. “I like that GreenStone takes a chance on young farmers, so then we can turn around and show we’re doing our part, learning and using the resources they’re giving you.” Future Opportunities

“

Being a young farmer, it’s nice to have someone help... I like that GreenStone takes a chance on young farmers, so then we can turn around and show we’re doing our part, learning and using the resources they’re giving you.”

Ben doesn’t live far from his parents, Jerry and Ellen Kasik, and joked with them that he was going to be a bachelor farmer his whole life. Instead, when he matched with his now-wife Megan on the Farmers Only dating site, he called his mom after their first date to tell her he met the woman he was going to marry. They married in the summer of 2021. “Our wedding happened right during wheat harvest, and I was so glad it rained, so I wasn’t thinking I could be combining wheat,” he said. “Megan isn’t from a farm, but now she wouldn’t have it any other way,” he said. “I think a farm is the best place to raise a family. There are so many opportunities for responsibility, even at a young age, and it gives you a connection to nature. Not every kid gets the chance to smell a rain coming or feel a frost melting in the spring.” He looks forward to the future of farming with his grandpa and living with his family on the farm. As he plans for his farming future, he knows he’ll continue to use the resources available to him, as well as let other people know about them. “I would encourage any other farmers to take advantage of these opportunities,” Ben said. “Go for it. I plan on using every resource I can, from financing, programs, grants, meetings, anything like that - where I have the chance. Without GreenStone’s assistance with getting started, I wouldn’t be where I am now.” ■

➡F inancial services officer Nikki Burke works with a number of young, beginning, and small farmers like Ben out of the Corunna branch. ➡O pposite Page: A team approach provides great value in farming. Ben uses his network, from his mentee Eric, to his financial services officer Nikki, and others, as part of his ongoing learning and business considerations.

Partners — Winter 2022

YBSF RESOURCES: CULTIVATEGROWTH GRANTS GreenStone recognizes the importance of young, beginning, and small farmers and the role urban food production and diverse producers play in sustaining rural communities and agriculture.

With the new year comes new opportunities, and to continue supporting the next generation of agriculture, GreenStone is again providing $40,000 to young, beginning, and small farmers through the newly revised CultivateGrowth grant program! 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. Designed specifically to help prepare all producers for success, the grant program helps minimize financial 9

Winter 2022 — Partners

and resource barriers often faced by individuals newly entering the industry. 2022 marks the fifth year GreenStone has dedicated $40,000 to individuals through grant funding. The grant amounts will 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: reside in Michigan or northeast Wisconsin Intended grant use must fall within one of the following categories: • Agricultural programs/events: educational course/program (on-site or online), conference fees, etc. • GreenStone resources: first time use of accounting and tax services, technology support, etc. • Non-GreenStone services: business and farm consultants, etc. Interested in applying? Visit www.greenstonefcs.com for more information. ■

$40,000 AVAILABLE IN SCHOLARSHIPS GreenStone Scholarships: Apply Now Committed to supporting the agriculture industry’s future leaders, GreenStone is honored to once again award up to $40,000 through the 2022 scholarship program. Applications are now being accepted. Incoming college freshmen pursuing a degree in agriculture-related fields are encouraged to apply now. 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. For complete program guidelines and application, visit www.greenstonefcs.com. Application deadline is February 28, 2022. ■

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: Christmas tree industry outlook It's all about supply and demand and for the Christmas tree industry, and both may have tipped in its favor. Dollars and Sense: Loan-length matters When considering a purchase requiring financing, a factor you’ll always consider is the loan length. Pagel’s Ponderosa Dairy, Kewaunee, Wisconsin Purchased in 1946 by Carl and Garnet Pagel, the Pagel family farm started with 80 acres, a few cows, chickens, and hogs. ■

Partners — Winter 2022

Why Hold a Family Meeting? (And How to Do Them Well) By Barb Dartt, DVM, MS Consultant with the Family Business Consulting Group

At a client’s annual family-business meeting, I had the honor of sitting by Grandma. She and Grandpa had founded the business and were enjoying watching their family, four generations and 27 total folks, enjoy each other’s company.

Winter 2022 — Partners

She showed me a picture of a tow-headed toddler wearing water wings, smiling broadly as he stood next to a pool. “That’s Teddy, at our second family meeting. He’s 24 now – right over there.” She pointed. “He just got engaged!” This family had been holding family meetings almost every year for over 20 years, beginning when it was only eight adults. The gatherings began as a combo of a fun overnight escape to a local hotel and a short update from the farm’s banker or accountant. Today, the meeting includes hands-on learning for all ages, followed by dinner together. The ten cousins (and their spouses) know each other well and enjoy each other’s company. As I attend their sessions, I can feel their connectedness and engagement, which was developed, in part, by the power of having ongoing family meetings. As your family business organization grows, the business and ownership systems evolve and formalize. Within the business, middle managers are hired, meetings to plan and effectively communicate are held, and non-family managers contribute

more and more to the business. In the ownership system, a Board might emerge – first with family owners working in the business, then evolving to include non-managing family and eventually independent directors. Less common is the growth and deliberate formalization of the family system. And yet, the family’s clear vision and values are the strong foundation that underpin healthy family businesses. As the family grows into a broader, more diverse group that includes married ins, it takes deliberate time and effort to define that vision and values. Essentially, strong families put in the work to discuss and decide on how, even across a wider variety of careers and perspectives, the business continues to make the family better. Why does the structure that supports the family system often come last? In agricultural businesses, where independence is prized, formally convening the family can feel like you’re inviting perspectives from a diverse and (sometimes) uneducated stakeholder group. I have heard this: “It’s hard enough to get decisions made among my two brothers and me! And you’re suggesting I should have another meeting and ask for my family’s input, too? Are we going to let them have a say in how the business runs??” A family meeting does not mean the management and leadership of the business will be turned into a democracy or that family members automatically get their way.

SMITH FAMILY MEETING AGENDA TOPIC LEADER

1. Meeting Kick-off (5 min) • Family meeting purpose

Facilitator

• Ground rules, including confidentiality 2. Setting the Stage (20 min) • Reflections on the past year

Mom & Dad

• A story about working with grandpa that illustrates one of our values 3. Farm Business Overview (40 min) • Production Report

Next Gen in

• Landlord report

the Business

• Major successes and challenges this year • Outlook for Next Year 4. Industry Economics, Asset Value & Rental Value Trends (20 min)

Farm Lender

5. Family Business Education Topic (30 min) Family Business Consultant

Another challenge is the foreignness and formality of a family meeting. When “everyone” works in the business and sees each other every day, why is an official meeting required? Additionally, some folks balk at sharing business information – they are intensely private and don’t see the need to share challenges or wins with anyone, even family.

6. Meeting Wrap-up & Schedule Next Meeting (5 min)

Fortunately, doing this work of organizing and “aiming” the family doesn’t require disclosing your entire balance sheet or allowing your 12-year old snowboarding enthusiast to have input on your marketing program.

• Facilitation includes communicating the location, time and agenda, ensuring a variety of family members speak up and ensuring the meeting stays on time.

The impact of regular family meetings can be long-lasting, like in the example. Well-planned family meetings can yield stronger family relationships that form a foundation of support for the family business. Below are some practices that can increase the probability that your family meeting will grow and nurture a strong family foundation. 1. Be as inclusive as possible in whom you invite.

As successors begin to marry and start their own families, will those in-laws be invited? If the meeting has been called to handle a conflict or sensitive issue, sometimes in-laws are not invited. However, as the family settles into “regular” meetings, most families do include in-laws within family meetings. To build that family foundation, it’s helpful to have both parents of future generations understand the business values and history. 2. Match the formality, length and agenda to the stage of the family.

Here’s an example agenda for a family that includes mom, dad, two next gens in their late 20s. Both next gens are married and one works in the business. Note this meeting is about two hours long.

Facilitator

7. Social Event – Axe Throwing & Dinner 3. Consider having a non-family facilitator for the meeting.

• Having an “outsider” with experience can help make sure the amount of content fits the time allowed and is engaging. And, they can help quiet folks get heard and lively folks pipe down – in a way that takes the pressure off family. Regular family meetings contribute to the longevity of familyowned businesses. Holding them may make you feel a bit vulnerable. And, getting them kicked off may feel a bit awkward. But in just a few hours a year, you can create a space for family to build energy, engagement and commitment. Those gatherings can build the “glue” the binds a family together through the conflict, miscommunication and hurt feelings that happen within every family business. Consider holding a family meeting in 2022! ■ 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 assist with succession and continuity planning. Barb can be reached at 269-382-0539 or dartt@thefbcg.com

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

Partners — Winter 2022

More than Believing in Sustainable Agriculture 13

Winter 2022 — Partners

Sustainable Agriculture Customer Feature

Steve and Kris Van Haitsma are committed to sustainability and environmental responsibility, which stems in part from Kris’ background in environmental chemistry.

➡ Steve and Kris Van Haitsma own Mud Lake Farm in Hudsonville, Michigan. ➡A long with hydroponic lettuce, they use their greenhouses and outdoor area to grow a variety of microgreens, herbs, and much more. They also produce beverages made with the ingredients from their farm.

“I graduated with a biology degree from Calvin University,” Kris said, “and I started working as a lab tech in an environmental testing lab. As a chemist for the next 18 years, I worked on quality control, testing for things like pesticides and herbicides.” Steve was raised on an organic farm, so he was already familiar with the farming philosophy free of pesticides and herbicides. Also a Calvin graduate, he owned his own appraising business before transitioning full-time to the farm. With those backgrounds, the couple began Mud Lake Farm by buying used greenhouses and moving them to their property. The Van Haitsmas have four greenhouses and 36 acres, plus they grow using hydroponics. The land where they farm was in Steve’s family for 117 years, and most of that time it was cattle pasture. When they were getting ready to move to it, they envisioned being able to have all the inputs to grow and produce. “It’s a difficult thing to figure out how to do, and this was before the internet,” Kris said. “We were doing all the research with books, and we thought – let’s try hydroponics.” They built ponds in the greenhouses that are insulated, and they use PEX tubing that runs from a geothermal system to heat the water, much like a floor heating system. Their ponds have foam floats that float on top of the water, and the roots grow into the water to draw the nutrients from it. No weeding is required, and they’re able to use all the growing area. As a result, they’re also not losing water to evaporation, because the surface is covered. “We use about 10% of the water to grow hydroponically that we would use to grow traditionally,” Kris said. Currently, they have between 6-10 hydroponic beds in each of their greenhouses, and they also build other beds outside in the summer. With this system, they’re able to harvest 600-800 pounds of lettuce a week in the summer. Along with hydroponic lettuce, they use their greenhouses to grow microgreens, a variety of herbs, rosemary, pineapple sage, mint, ginger, and chamomile. Outside, they grow arctic kiwis, hazelnuts, elderflowers and berries, and much more.

View a highlight reel video at: www.greenstonefcs.com/Sustain22

Partners — Winter 2022

“

We’re always trying something new... Last year we planted 100 yellow birch trees to use as a flavoring for our root beer.

➡M ud Lake Farm sells their beverages under the name St. Steve's Farm-Crafted Cordials & Sodas.

“We’re always trying something new,” Kris said. “Last year we planted 100 yellow birch trees to use as a flavoring for our root beer.” Cordials and Sodas

After making their mark in the produce arena, the couple decided to expand into a new venture. “For our wedding anniversary we went to Wales,” Steve said. “We tried elderflower “pressé” (which is a fancy French word for soda), and we thought – we can make this!” They went to their friends at Cascade Winery in Grand Rapids and used their canning equipment to make elderflower soda. “We were told we were the first ones in the states to make elderflower soda,” Steve said. “It’s my favorite one. Not only do you get all the benefits of the elderflower, in that it’s good for cold and flu, but it’s also a fun beverage that you can use to make cocktails.” 15

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They were already growing ginger for chefs and decided to try making ginger cordial with it instead. It went so well, they also made a ginger soda. Since then, they have added a root beer made with natural ingredients, including carrots, beets, and a chamomile soda from their fresh chamomile flowers. They now produce beverages made with the fresh ingredients from their farm, and they sell under the name St. Steve’s Cordials & Sodas. “The main thing is we’re using real ingredients to make it, and it comes from here,” Kris said. “We use our fresh elderberries, elderflowers, chamomile, ginger, birch bark. We have a limited number of ingredients because we want just fresh, simple ingredients. Most ginger ales and ginger beers don’t even have real ginger in them, so we see this as an opportunity to give people an amazing soda that still provides the functional benefits of using the real plant.” “We have lots of people who buy our products just for the health benefits,” Steve added. “People going through cancer treatments love the ginger. People who struggle with sleeping love the chamomile. It so neat to make something that people really appreciate. We get so much amazing feedback from our customers.” Financing opportunity

They soon looked into purchasing a canner for their own business. “We’ve always had conventional loans before, and other banks didn’t want to work with us because we were now a farm,” Steve said. “We talked to Matt Alt, and it really seemed to fit together with what we were trying to do and what GreenStone offered.” Matt Alt is a financial services officer out of GreenStone’s Grand Rapids branch. When Kris and Steve contacted him, they asked about a house refinancing loan, but also additional funds for a canner. “It was such a unique situation, as they are growing the throughput and then producing the craft

soda with it,” Matt said. “It was an exciting loan to help with, because it was obvious the benefits the canner would bring to their business.” Matt added that when he visited the farm, it happened to coincide with a day his branch was meeting up for a potluck, so he brought a case of craft soda. “We tried a bunch of different flavors, and it was a hit,” Matt said. “I’m glad we were able to help with their soda creation.” In January 2021, Steve and Kris used GreenStone to finance their canning line, and they now are able to can their sodas and sparkling waters on the farm on their own schedule, producing 24 cans a minute. Sustainability

Steve and Kris have designed their farm around sustainability measures. They use LED lighting to provide supplemental light in their greenhouses. They heat the water in the hydroponic beds with a geothermal system, and they also use a biomass furnace to heat the air over the cooler months. For a heat source, they burn cherry pits that they buy from a supplier in Shelby, Michigan. “We tried different materials like corn, and wood pellets, but they had issues like leaving residue and attracting rodents,” Steve said. “We also had an issue that corn is a food source. With cherry pits, they’re a carbon neutral product, they’re produced every year, and they’re also a complete waste product. We buy 15 tons of them every winter.” Steve and Kris have a strong online presence, have won many awards, and have built a successful business with their produce and beverages. “We believe in sustainable agriculture, and we’re looking forward to exploring more ideas to make it even more sustainable,” Kris said. ■

Year-end financial review helps meet your needs Income Tax Returns (Or sign the enclosed “Consent to Use Tax Return Information” form to allow your tax preparer to release it to me.) • Authorization and Consent for the Release, Collection and Utilization of Information form Having accurate, organized financial data is critical for making successful business decisions. Providing accurate and consistent financial information to GreenStone positions us to have high quality, impactful conversations with you about your business and future business goals. It is an opportunity for you to proactively communicate your plans and allow us to provide you with feedback regarding the financial health of your business and your plans for the upcoming year. Proactively sharing your financial information allows us to evaluate the capacity of your business to safely finance your next loan request. Providing the information early will significantly reduce the time needed to provide you with an answer when that moment arises. Common documents to prepare:

• Balance Sheet, listing your assets and liabilities • 2021 Historical Farm Production Data • 2022 Income and Expense Projection • 2021 Federal and State

Communication

The business you are running is sophisticated and complex. There is no doubt that you are keenly aware of the market costs affecting your operation and the upcoming opportunities or roadblocks you may face. Efficiently communicating these details can be challenging. However, using yearend reports as a tool to communicate with us and other business partners will help ensure the entire team is on the same page. From a credit standpoint, the more we know up-front, the more efficiently we are able respond to your needs – helping to keep your operation running smoothly.

over-year comparison. All operations can benefit from generating these at year-end as this provides a consistent ‘snapshot in time’ view of your financial position. In turn, this will help assess how the operation is progressing, and identify and plan for any necessary or advantageous changes. Moreover, compiling the reports at year-end will enable us to respond more quickly in the coming year if new financing needs or other opportunities arise. Value

Customers find value in this process because financial

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statements open a window for educated decisionmaking and strategic planning for your business. In addition, year-end financial reports allow for a review of your financial progress over the past year, while also providing critical information necessary to evaluate future business needs. Beyond the benefit to your business management, it also supports your future loan needs. With the financial information already entered in our system and analyzed, GreenStone is able evaluate and process loans in a more timely and responsive manner. ■

Customers find value in this process because financial statements open a window for educated decision-making...

Financial Position

Understanding the financial position of your business will help each of us to evaluate the overall financial condition of your farming operation as well as specific financial trends that we have found to be key indicators of your business’s financial health. By having a series of highquality year-end financial reports, each of us can conduct an accurate year

Partners — Winter 2022

Winter Market Outlook:

2021 Recap By Matthew Naeyaert, GreenStone Capital Markets Senior Credit Analyst,

Throughout the past year the U.S. economic recovery has been remarkably strong coming out of the COVID-induced recession of 2020. However, the rate of expansion slowed substantially in the third quarter of 2021 as gross domestic product (GDP) grew at an annual rate of 2.1% according to the U.S. Bureau of Economic Analysis. This reading came on the heels of strong, annualized, GDP growth of 6.3% and 6.7% in the first and second quarters, respectively. The deceleration in growth was primarily attributed to widespread labor shortages and worsening supplychain bottlenecks. As has been the case over the past 18 months, future economic expansion will continue to depend heavily on the course of the virus, particularly the impact of any potential new variants. The U.S. labor market has consistently added jobs in 2021 with average monthly gains of 555,000 through November. 17

Winter 2022 — Partners

The November report from the Labor Department reported the economy added 210,000 jobs in the month and the unemployment rate fell to 4.2%. Additionally, the labor force participation rate increased to 61.8%, the highest level since March 2020. Also noteworthy is the 4.8% year-over-year increase in average hourly wages, which is likely incentivizing more people to re-enter the workforce. Inflation continues to be a hot topic as U.S. consumers experience price increases across a broad range of categories. The Labor Department reported that the Consumer Price Index (CPI) increased by 0.9% in October from the prior month, a considerable jump from the 0.4% monthly increase in September. Further, on a 12-month annualized basis the index rose by 6.2% in October, representing the largest 12-month increase in the CPI since November 1990. The data demonstrated the increases were broad-based with rising prices for energy, shelter, food, and new and used vehicles being the largest contributors. The higher rates of inflation in 2021 have been attributed to the swift and robust economic recovery, aided by government stimulus and a strong job market. The U.S. economic expansion has been led by stronger than anticipated consumer spending on goods and services, which has resulted in supply-chain bottlenecks providing further demand pressures and driving up prices. The Federal Reserve has maintained its accommodative monetary policy throughout 2021 in order to support the U.S. economy’s recovery and promote the Federal Reserve’s two goals of maximum employment and price stability (i.e. inflation at the rate of 2% over the longerrun). Specifically, the Federal Open Market Committee (FOMC) has kept the target range for the federal funds rate at 0.00% to 0.25% and completed asset purchases of $120 billion per month. At its November meeting, the FOMC acknowledged that substantial further progress has been made towards its goals (most notably inflation increases) and therefore it would be reducing the pace of its asset purchases by $15 billion each month beginning in November. The Committee also communicated its wish to completely end its monthly asset purchases prior to lifting interest rates. Consequently, at the announced pace of

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The U.S. economic expansion has been led by stronger than anticipated consumer spending on goods and services, which has resulted in supply-chain bottlenecks providing further demand pressures and driving up prices.

$15 billion fewer purchases per month, interest rates would likely not be lifted until the second half of 2022. The U.S. housing market has experienced a surge in prices in 2021 with the S&P CaseShiller National Home Price Index projecting a 15.6% increase in home prices for the year. The primary drivers for the price appreciation have been strong demand, particularly from Millennial homebuyers, and a shortage of both new and existing homes for sale. For perspective on this shortage, according to Freddie Mac the U.S. housing market had a supply deficit of 3.8 million units entering 2021. In an attempt to meet this imbalance, single-family starts are projected to increase this year by 4.6%, to 1.15 million, and multifamily starts are forecast to increase by 17.1% to 460,000. While benefiting from the strong demand, homebuilders are contending with supply logjams and labor shortages which will lead to extended project timelines and will keep builders busy into 2022 and beyond. Moving to agriculture, the USDA is forecasting an all-time record level of U.S. agricultural exports in fiscal year (FY) 2022. The most recent forecast is for total agricultural exports to equal $175.5 billion, a 1.9% increase over the previous record set in FY 2021. The two commodity groups contributing most significantly to the increase are livestock/poultry/ dairy, and soybeans/soybean products. Exports of livestock, poultry, and dairy are forecast to grow by 4.6% with gains across all major commodities except pork. Soybean and soybean products exports are projected to improve by 2.8% due to increased demand from China; however, these products face a significant headwind from the expectation of a large Brazilian harvest in early 2022. The U.S. dairy industry has endured both milk price volatility and rising feed costs throughout 2021. While milk prices have shown more stability in the second half of the year the industry continues to face higher input costs from elevated feed prices, as well as rising labor and energy costs. These challenges, combined with strong beef prices, have led to a 1% reduction of the milking herd to 9.42 million from its peak in May, resulting in lower production forecasts for the end of 2021. In consideration of these trends, USDA is projecting an all-milk price of $18.50 per cwt for 2021. Looking forward into 2022, the all-milk price is forecasted to increase to $20.25 per cwt due to increased demand from both domestic and export markets. U.S. pork production is expected to total 27.7 billion pounds in 2021, a 2.2% decrease from 2020. This reduction is due to lower dressed weights and lower hog slaughter numbers, driven by a decline in processor demand for hogs. The reduced demand from hog processors is attributed to constraints on slaughter capacity due to ongoing labor shortages as well as court-imposed restrictions of line speeds at several processing plants.

Partners — Winter 2022

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If the forecasted level of net farm income is realized, it would be its highest level since 2013. U.S. pork exports are expected to decline by 1.2% this year to 7.2 billion pounds, largely because of lower shipments to China. Average hog prices for 2021 are forecast at $67.45 per cwt, 56.2% higher compared to 2020. However, prices peaked in the second quarter at $80.92 per cwt, and have been on a declining trend since with a projected fourth quarter price of $57.00 per cwt. In 2021 annual broiler production is forecast to total 44.8 billion pounds, representing a nearly 1.0% percent increase over last year. This growth is driven by marginally higher total slaughter and increased average live weights. Prices are up considerably with average annual wholesale bird prices at 99.7 cents per pound, a 36.2% increase over last year. Strong price support is provided by exceptional demand for a broad range of items including bonelessskinless breasts, wings, and tenders. Wholesale egg prices are projected to average 116.8 cents per dozen in 2021, which is 4.1% higher than the 2020 annual average. Total U.S. egg production in 2021 is forecast to equal 8,077 million dozen, a 2.4% increase over last year. Producers are still working through the COVID-impacted flock reductions from 2020, as the table layer flock was didn’t achieve year-over-year growth until July 2021. Despite the smaller flock size, total egg production is still forecast to increase as younger layer flocks are

Winter 2022 — Partners

more productive. Foreign demand for U.S. egg exports has been extremely strong in 2021 with total egg exports increasing by 18.7% through the first three quarters, driven by large increases in shipments to South Korea (+52,856 thousand dozen), Japan (+8,989 thousand dozen), Hong Kong (+4,637 thousand dozen), and Canada (+4,064 thousand dozen). Whole frozen turkey prices are projected to average $1.231 per pound in 2021, a 15.6% increase over 2020. For the second year in a row, average prices have achieved year-over-year growth in each quarter leading to the strong growth in the average annual price. Total U.S. turkey production in 2021 is forecasted to decline by 2.28% to 5,612 million pounds due to decreased turkey placements and slightly lower average weights. Turkey exports are estimated to drop minimally by just 0.8%; however, this is on the heels of an 10.6% reduction in 2020 due to lower shipments to Mexico, the number one export market for U.S. turkeys. According to the USDA, net farm income, the broadest measure of profits, is forecast to total $116.8 billion in 2021, a 23.2% increase compared to 2020. The projected increase in farm income is driven by growth in receipts for both crop and animal/animal product sectors, which will outpace the growth in production expenses. Price improvements, rather than quantity changes, account for the vast majority of growth in cash receipts across both livestock and crop commodities. If the forecasted level of net farm income is realized, it would be its highest level since 2013. Farm sector equity is forecast to total $2.81 trillion in 2021, which equates to a 2.8% year over year increase. Farm assets are expected to increase to $3.26 trillion, or 2.8%, which is primarily driven by increases in the value of farm real estate. Total farm sector debt is forecast to increase by 2.9% to $454.1 billion in nominal terms, but when adjusted for inflation will be reduced by 0.8%. The increased debt level is the result of higher levels of real estate debt, while nonreal estate debt is essentially unchanged. Due to these dynamics, the farm sector’s debt-to-asset level will experience little change and working capital is forecast to increase by 9.6% in 2021. ■

CONNECT

NEWS: GreenStone recognizes 2021-2022 Smith-Pickard Friendship and Alliance Scholarship winners Congratulations to the 2021-2022 recipients of the Smith-Pickard Friendship and Alliance Scholarship, who are attending Florida A&M University in the College of Agriculture and Food Science/ School of Business & Industry. GreenStone will offer professional mentors to the students, as well as assist them in finding internships. GreenStone has also donated a laptop to each student. In addition to GreenStone’s commitment to these students, the national Farm Credit System will also be providing a $3,500 stipend to each student who becomes a Farm Credit intern to assist with travel, housing or other general intern costs through the Launching Leaders program. The award winners are: - Makailah Danzy, graduate of Kalamazoo Central High School, bioprocessing and food engineering major - Aaron Richard Jr, graduate of University of Detroit Jesuit High School and Academy, biological systems engineering major - Alexis Roberts, graduate of Mercy High School, business administration major and minoring in agriculture - Sydney Smith, graduate of Renaissance High School, business administration major and minoring in agriculture - Dionne Star Jones, Bahamas, majoring in agriculture science - Hubert Fernander, Bahamas, majoring in agriculture science The Friendship and Alliance Scholarship is a partnership

between Cornelius A. Smith, Governor-General of the Commonwealth of the Bahamas, and William F. Pickard, Honorary Consul, Detroit, for the Commonwealth of the Bahamas. The goal of the award is to support young leaders that aspire educate themselves and work in the field of agriculture. The scholarship will pay for up to 15 hours of tuition for the fall and spring semesters annually and is renewable each year for up to three years.

GreenStone is the agricultural connection on the scholarship advisory committee, as the award is designated for Black students who attend a historically Black school and study agriculture. The future goal is to award eight students - half from Michigan and half from the Bahamas - with four years of scholarship funds. “We are excited to support the youth of Detroit and Bahamas in their pursuit of a career in agriculture,” said Beth Barker, GreenStone executive VP and chief human resources officer.

“In addition to supporting the Friendship Alliance Scholarship program, GreenStone provides 20 scholarships annually for incoming college freshman studying agriculture or an agrelated field. We also support several youth programs like 4-H, FFA and Minorities in Agriculture, Natural Resources and Related Sciences (MANRRS). Our partnership with the Friendship Alliance Scholarship program at Florida A&M University is a natural extension of our commitment to bringing great talent into our industry.”. ■ Partners — Winter 2022

Ladies Day Out

In celebration of the women who make an impact every day, and our wonderful communities, we have put together a video featuring some familiar Wisconsin faces who would like to say hello. This year, our Ladies Day Out team will also be delivering some special prizes to select winners. To view the video and register to win one of 50 prizes, visit the URL below or scan the QR code in the corner of your postcard by February 5. ■ 2022 Farm Women’s Symposium The Farm Women’s Symposium committee is excited to announce they will be holding their 30th Annual Farm Women’s Symposium March 2-4th, 2022 in Holland, Michigan. The event provides women opportunities for leadership and development, enhancing communication and management skills, building effective family and family teams,

and developing a network of supportive friendships. GreenStone will once again provide $150 scholarship toward the cost of registration for our members; be sure to indicate your branch on your registration form. Please visit the Farm Women’s Symposium Facebook page or new website for more details: https://www. farmwomenssymposium.org ■ Annual Report This is an official notice that the 2021 GreenStone Farm Credit Services annual report will be available for viewing online at www.greenstonefcs. com by Wednesday, March 16, 2022. In addition, the annual report will be mailed/emailed to all stockholders within 90 days of year-end. By regulation, GreenStone is required to send a copy to each stockholder, regardless of duplicate mailing addresses. ■ Branch Move GreenStone continues to serve our members in Ingham County with our branch now located within GreenStone’s corporate office at 3515 West Road, Suite 100, East Lansing, MI. We look forward to continuing to serve all our members in the office and at their home or farm! ■

2021 Deer Challenge November 28 marked the end of GreenStone’s 10th annual Deer Challenge. With many impressive entries, congratulations to all the winners! Big Buck Contest (Adults 18 years or older): - First prize - $400 – Travis Mlodik - Second prize (tie) - $150 each – Penny Jandrin and Scott Karbon Junior Buck Contest (17 years and younger): - First prize - $200 – Rylee Nelson, age 14 - Second prize - $100 – Luke Kinjerski, age 11 Entries that didn’t win cash prizes were entered into a drawing for a game camera and gift cards. Those winners were: - Game Camera: Carson Nett - $25 gift card: Jack Auer - $25 gift card: Terry Jerabek - $25 gift card: Lee Petrina - $25 gift card: Chris Hamilton Congratulations to all! ■

2022 Logging Forums Success in the timber industry takes planning, hard work, good management and long-term commitment. That’s why GreenStone has been a steady, reliable financial partner to the lumber business for decades. As part of this commitment, we will be hosting two free Logging Forums in northern Michigan to provide GreenStone members and timber professionals mill updates, information on equipment financing, legislative commentary and the opportunity to earn SFI points. • Tuesday, March 22 at Treetops Resort in Gaylord, MI • Thursday, March 24 at Island Resort and Casino in Harris, MI Both Logging Forums will run from 8:00 a.m. to 1:00 p.m. (EST) and breakfast and lunch will be served. There is no cost to attend, however registration is required. Learn more and RSVP at: www.greenstonefcs.com. ■ 21

Winter 2022 — Partners

2022 Home Construction Seminars Building your dream home starts with creating a plan – and with so many construction options and the quickly-changing housing market pricing, it’s important to know where to begin. To help you get started, GreenStone is hosting both in-person and virtual Construction Seminars to help you understand the building process and determine which plan works best for you. Hear from your local construction loan experts about various loan options, qualifications, the draw process and the difference between do-it-yourself and contracted projects. To help you safely connect with home construction loan experts, there are multiple seminars, both online and in-person, to choose from during January and February. Construction Seminars are free to attend but registration is required. To register for the seminar that best fits your schedule, visit www.greenstonefcs.com. ■

Mark Your Calendar... JANUARY

Ladies Day Out Door Prise Entry (Jan. 5 - Feb. 5)

GreenStone Closed In Honor of Martin Luther King, Jr. Day

DBA Dairy Strong Conference (19-20) Madison, WI

Great Lakes Crop Summit (26-27) Mount Pleasant, MI

FEBRUARY

GreenStone Construction Seminars (Jan. 31 - Feb. 17) Various Locations

Winter Potato Conference (2-4) Grand Rapids, MI

Great Lakes Regional Dairy Conference (3-4) Frankenmuth, MI

MARCH

Ultimate Sports Show (10-13) Grand Rapids, MI

Ag Day at the Capitol Lansing, MI

Take Root Farm Succession Planning Conference Grand Rapids, MI

Patronage Day

Growing Together Conference (18-20) Grand Rapids, MI

GreenStone Logging Forum Gaylord, MI

GreenStone Closed In honor of Presidents’ Day

GreenStone Logging Forum Escanaba, MI

Outdoorama; Suburban Showplace (24-27) Novi, MI

Ultimate Sports Show (18-21) DeVos Place, Grand Rapids, MI

Wisconsin Public Service Farm Show (29-31) Oshkosh, WI

Partners — Winter 2022

The GreenStone Story:

The Same… But Far Better! Expanding to the niche needs of diverse young, beginning, and small farmers. CultivateGrowth provides the foundation for farmers to flourish in their agricultural aspirations. Uniquely designed to support the diversity of modern agriculture, the program provides financing, education, and funding to serve the need of this valuable community. In short, it’s putting our mission on steroids. It’s all the great services and support GreenStone has been providing to young, beginning and small farmers for more than 100 years, with a refreshed approach to align with the growing opportunities in agriculture. We understand the challenges individuals face when

Winter 2022 — Partners

starting their own farm or taking on ownership of a multi-generational farm. Helping new farmers, and small-scale farmers obtain and maintain the resources they need is our priority, and we’re doing it through a variety of ways! Through GreenStone’s CultivateGrowth program, we provide financing in unique and individualized situations through our relaxed underwriting standards to help the next generation of agriculture overcome the financial challenges of entering farming. Our expertise in agricultural financing, in addition to our understanding of specialized Farm

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An exciting part of CultivateGrowth is a new emerging farmer loan program, specifically designed for beginning farmers in mind

Service Agency (FSA) programs, allows us to better understand the business cycles and details of each operation as we provide specialized loans for young, beginning or small farmers. An exciting part of CultivateGrowth is a new emerging farmer loan program, specifically designed for beginning farmers, since many may have low or no credit, or don’t have a lot of collateral. This financing program has even more flexible standards, allowing GreenStone to provide the financial support to customers who may not have previously been able to qualify. That means more aspiring farmers will be able to obtain the financing for their dreams. Education

Knowing agriculture is a rapidly changing, and challenging, industry, GreenStone has prioritized its support by providing our customers with learning opportunities and resources. Yet, no two farms, nor farmers, are the same. Which is why we’ve developed diverse educational program opportunities that offer a customized approach to each member’s needs. Beyond the opportunities, those members in the emerging farmer loan program also have the opportunity to earn a reduced interest rate after completing a slate of educational activities. All emerging loan customers can take advantage of: • Financial training • Educational conferences • Instructor-led workshops • Industry consultation • Tax and accounting services • Mentorship program • Business plan creation • Financial checklist assistance

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Funding

To help provide producers with many of the educational opportunities and support necessary for success, GreenStone once again is committing up to $40,000 annually to young, beginning, and small farmers through the CultivateGrowth Grant program. Grants are available for customers ($1000/year) and noncustomers ($500/year) for reimbursement of activities and resources that will help them learn and grow their business – including the educational opportunities outlined above. This money can be used for educational programs and events , business related GreenStone services like accounting and tax services, and resources such as business and farm consultants. Networking

In reaching the goal to prepare the next generation of industry leaders for success, GreenStone is working to connect producers through the CultivateGrowth Mentorship program. Through this partnership, new and experienced farmers are connected to help share industry knowledge, pass along on-farm lessons, and help equip them for the challenges of the agricultural industry. The next class of mentee/mentor pairs will kick off this fall. Watch for applications to open in the summer! As a mission driven cooperative, focused on the success of our members – which excitedly includes the diverse future of farmers, markets and production practices – the refreshed and expanded approach to serve our members through the CultivateGrowth program is one way we’re continually working to provide the solid foundation to grow together! Get all the details and resources on our website: greenstonefcs.com/ cultivategrowth. ■

The Farmory's leadership team would like to thank you for your sponsorship. Your gift was received and will be invested in our Farmory Programs, Hatchery and Aquaponic systems, and Educational Outreach efforts. Now, thanks to your generous support, The Farmory can continue to provide both educational and entrepreneurial opportunities in sustainable agriculture that build economic self-sufficiency and improve health, well-being, and the environment. Your faith in our mission is greatly appreciated, and we hope you remain a supporter of The Farmory. — The Farmory Team

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I want to let you know how much of an impact you’ve had on the lives of Southeast Michigan’s hungry children, families, seniors and veterans. Thanks to your compassionate support, Gleaners is working toward closing the hunger gap and providing the food and stability so many of our neighbors need. Because of you, someone - a child, a family, a veteran - will eat today.

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— Gleaners Community Food Bank of Southwest Michigan

...Candid Comments Partners — Winter 2022

Matt Alt Senior Financial Services Officer 7 years of service

BEHIND THE SCENES In this behind the scenes, two GreenStone employees share their work and passion to serve on GreenStone’s CultivateGrowth committee. The committee has been instrumental in the recent expansion of the program that serves young, beginning and small farmers (YBSF).

How does your role tie into your work with the development of the new CultivateGrowth program? As a loan officer, I am meeting and talking with young, beginning and small farmers often. I have the opportunity to discuss what is working for them as well as any pain points they may be running into when applying for credit or starting their farming career. This gives me a great perspective. Why are you passionate about supporting YBSF? Growing up on a farm, I have many family and friends that are YBSF right now. They face the same obstacles and challenges that we are trying to address with this new program. How will the expanded program benefit your customers? I think the program offers a lot of great educational opportunities. They can apply for a grant to assist with costs of conference registration, industry educational classes or general finance classes. Also, we have a mentor program that can pair them with another farmer to learn and gain experience.

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I am excited to share the many different options YBSF applicants will have with the expanded program.

What change in the program are you most excited to share with YBSF customers? I am excited to share the many different options YBSF applicants will have with the expanded program. Each request and situation is different; some may be best suited for a direct GreenStone loan, others may benefit from joint financing with GreenStone and FSA. We want to work together to establish a structure that meets their goals and sets them up for long term success. 25

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What do you do in your free time? In my free time, I enjoy spending time outdoors with my family. We like to go camping and hiking in Northern Michigan in the summer and try to get out ice fishing as much as we can in the winter. Zachary Nielsen Credit Analyst 4 years of services How does your role tie into your work with the development of the new CultivateGrowth program? My job is to analyze financial statements and outline strengths and weaknesses of our borrower’s financial position. With this program, we have been working to help customers better understand their financials and key metrics to help them improve their businesses. Why are you passionate about supporting YBSF? I do not have any farm background. This gives a firsthand perspective on the barriers to entry in the farming industry that many beginning farmers face. How will the expanded program benefit your customers? This program will provide some financial incentives as customers gain knowledge through educational conferences and courses. By working with their financial service officers, some members will be eligible for an interest rate reduction for qualifying loans. This reduction will be given upon completion of various activities. Many of these activities are regarding their business plan and financial statements. This not only helps the customer better understand and manage their business, but also helps GreenStone better understand their business and financial position. This process is mutually beneficial.

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By working with their financial service officers, some members will be eligible for an interest rate reduction for qualifying loans.

What change in the program are you most excited to share with YBSF customers? My favorite parts of the program are the interest rate reduction and educational activities that help them qualify for the reduction. This will be mutually beneficial for everyone. It also provides the customer time with our GreenStone staff that will lead to relationships that will last for generations. What do you do in your free time? I enjoy deer hunting, waterfowl hunting, fishing, and spending time with friends and family. ■

Pause for Applause... Congratulations to the 2022 Michigan Master Farmers: Greg McCarthy of Edmore, William Hunt of Davison, and Dennis Gardner of Yale. For many years, Michigan Farmer has bestowed the prestigious Master Farmer award on individuals who have demonstrated how to farm more effectively, efficiently, environmentally and economically. Thank you for your hard work and dedication to improving Michigan agriculture.

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 Emily Dreves Lorialyn Sabin Daryl May William Sinks Ann Niespodziany Kevin Keller Lyndsy Bock Sara Trattles Andrea Garza Sarah Dillon Cheryl Motz

5 5 5 10 10 10 15 15 20 20 40

February Amy Noonan Matthew Rigdon Jeffrey Ginter David Moll Kerry Chubb Corey Fanslau Tammy Lamers Cindy Spencer Nancy Blaauw Julie Gardner

5 5 10 10 10 10 15 15 20 25

March Robert Netrefa Sally Birch Michelle Boulter Ryan Kelley Tracy Jelinek Rebecca Davis Benjamin Mahlich Timothy Weihing

10 15 15 15 15 20 20 40

Partners — Winter 2022

It’s not luck, it’s PARTNERSHIP! #PartnershipPays – March 17, 2022

The pot of gold just got sweeter…a record $115 million will be returned in checks to our GreenStone members on Patronage Day! It’s lucky #17 – 17 years of returning a total of $720 million in dividends back to our members, and this year, you’ll be getting your share of the pot of gold from GreenStone on St. Patrick’s Day - March 17th! Patronage Day is an opportunity to celebrate the many benefits of your cooperative membership. Come join us in the branch, wear your lucky green, and come get your green dough. Being a member-owned cooperative means our members benefit from our strong financial position. That’s why your board of directors elected to again increase your patronage return this year from $105 million in 2021 to $115 million in 2022 – that’s nearly 45% of GreenStone’s net earnings and it’s all coming

Winter 2022 — Partners

back directly to our loan customers, our members, in dividend checks on March 17. Each member will receive a notification letter in midFebruary where you’ll learn the amount of your check. Included with the letter will be a personal invitation to join us in the celebration at your local branch, where you’ll be able to safely pick up your check and enjoy in the lucky fun with your local staff. And once again, GreenStone’s not only sharing profits with our customers, we’re also donating $20,000 to local organizations on behalf of our customers through our Member Grown Outreach program. When you get your Patronage check, you’ll also have the opportunity to vote for the cause most important to you. Once we hear from all our members, we’ll work with our branches to select a local

organization in each region of our territory to receive $2,500 to support the positive work they do in our local communities. As a financial cooperative, it is important for GreenStone to generate strong earnings and maintain adequate capital levels to help ensure it is a dependable source of credit for years to come. Supporting rural communities and agriculture is why we exist. These dollars offer an important tactical value, and our partnership will continue to pay in more ways than one! ■ #partnershippays

Director’s Perspective :

Troy Sellen

GreenStone was supportive of me as a young producer before I even understood what the organization was.

When a neighboring producer invited me to attend to a two-day technical herdsman program, his loan officer with GreenStone offered to pay for my tuition having never even met me. That loan officer would soon become a valuable sounding board and spent countless hours providing me guidance and support far beyond what was expected of him. As if the impression this made upon me wasn’t enough, I began to notice the green biostar logo at more and more industry events, and quickly came to realize this was an institution that thoroughly understood my occupation and the road I would follow as a young dairyman. I feel fortunate GreenStone took a chance on me in those early years, and realize our industry would suffer if every young farmer was not so lucky. Having the privilege of serving on the board, I find myself very invested in seeing this institution continue to maintain and expand upon providing support for those patrons who are just getting a foothold in their careers. The mentorship program is a great example of GreenStone’s commitment to this, as well as the specialized lending available through our newly expanded CultivateGrowth program. Don’t ever hesitate to ask your local GreenStone team for assistance as you navigate the uncertainty of your first few years. My advice is to embrace your mistakes and learn from them, and consider that every business you work with could be a great resource for developing knowledge. Wisdom often comes when you’re not looking for it. Some of the greatest lessons I ever had came from people who didn’t realize they were teaching! ■

Hear more from Troy in this video: www.greenstonefcs.com/YBSFBoard

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Don’t ever hesitate to ask your local GreenStone team for assistance as you navigate the uncertainty of your first few years.

Partners — Winter 2022

LEGISLATIVE CHALLENGES IN AGRICULTURE AND BUILDING SUCCESSFUL RELATIONSHIPS FOR A SUSTAINABLE FUTURE

Legislative Matters: Agriculture business requires a multiple discipline professional effort to be successful and sustainable. The business of agriculture requires a great depth of understanding on many topics and this requires having a team around you. In that team, there are on-farm partners and off-farm services that form a supporting cast, and when well managed, success is sustained for the agriculture business. When you put good people together a lot may be accomplished. Good people can be found in both unfamiliar and inconspicuous places, and it has become necessary to seek them out. GreenStone, as your financial cooperative partner, is one of those essential members of your team with an array of services focused to assist in maintaining agriculture business sustainability. Together we all know that legislators and the 29

Winter 2022 — Partners

consuming public play a role in our success and must also be considered part of the team. Legislators will have an impact on the sustainability of a farm or business and the rural communities we live and work in. While it has become common to think about sustainability in terms of natural resources, soil use, climate and related concepts as that term has been hijacked, sustainability should also mean ensuring the ability to return year over year to the business in good times and bad. This requires that sound management with a team. There have been significant legislative efforts to modify tax structures in what is known as “stepped up basis” and “capital gains”. Groups of agriculture leaders have banded together to profusely comment on these proposed changes. Additionally, a major proposed legislation with some diverse support in Congress has an aim to reward farmers for an unusual harvest of carbon as a crop. The Growing Climate Solutions Act promises billions of dollars for climatesmart agriculture practices, such as planting cover crops to reduce erosion and sequester carbon. Many of these practices have already been adopted by farmers for otherwise good business reasons and sound management practices. The legislation highlights farming’s potential as a climate change solution. The Senate has passed the legislation, but there remains work to be done in the House of Representatives. Regardless of what happens on this current proposed act, there will be more to come as the issues that need to be addressed are constantly being confronted by a team of interested parties. The USDA is a key regulatory partner for agriculture and has been active in their efforts to design policy and programs to

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We are engaged together for a better sustainable agriculture future. To be successful we will have to be ever present and engaged, and calm in the face of the challenges and changes.

assist in meeting the needs of sustainable agriculture. In 2021, an expansion of conservation programs was launched as a tool for success. See USDA Expands and Renews Conservation Reserve Program in Effort to Boost Enrollment and Address Climate Change. To meet the needs of a broader consumer marketplace, the USDA announce in July 2021 an investment of over $21.8 million to 1890 Land-grant Institutions to support research at Historically Black Colleges and Universities (HBCU) at our nation’s Landgrant University System. USDA Invests Over $21.8M to Build Agricultural Capacity at HBCUs in the Nation’s Land-grant University System | USDA. The aim of this investment was to advance equity and access to nutritious and safe food and create some innovative solutions to address challenges in the marketplace. Efforts to find leaders within these communities has become a critical ingredient to maintaining sustainability for future generations. You will see highlighted in this issue of Partners the important effort that GreenStone has engaged in with youth from neighboring urban areas. These efforts are critical to advance communication and education

with important members of the marketplace that are not readily familiar with the core of what we collectively bring to their neighborhoods from our rural neighborhoods. We are engaged together for a better sustainable agriculture future. To be successful we will have to be ever present and engaged, and calm in the face of the challenges and changes. To successfully play a sport the competitor must understand how to score points to win games. Weekends are full of competitive games with teams doing their very best to score points to win a game. People watch, cheer, think, cry, and offer other emotional reactions to the sport from the stadium stands or the armchairs of their living rooms. Just look at the scoreboard and the points reveal the truth and outcome. Finding the edge to win in the business of agriculture may start with having a well-developed business plan, but having a well-educated legislature and public will allow the agriculture business as a whole be more sustainable for a profitable future! ■

Reminder: You can support this years PAC efforts by designating a portion of your GreenStone patronage dividend returns to the PAC. Simply return your authorization envelope by January 31, 2022.

Partners — Winter 2022

View a highlight reel video at: www.greenstonefcs.com/CLWinter22

Winter 2022 — Partners

LIVE

The Better Life IN THE WOODS Country Living Customer Feature

Tom and Robbin DeMeester had been actively looking for land to purchase for some time. Even before they sold their family home in Ada, they’d been searching for a large place that wasn’t clear-cut farmland. They wanted something with some character, trees, and maybe even water. While driving around the area, Tom spotted a wooden sign.

GreenStone in 2017, dug in and worked through all the details with the DeMeesters.

“I think the only reason this parcel was available is because it was for sale by owner, and the wooden sign had fallen down,” Tom said. “I saw it amidst the roadside trees and thought – I wonder if it’s still for sale? I made the call, and odd as it was, the seller was a guy that I went to high school with.”

“Tom and Robbin were some of my first customers,” Devon said. “I’m blessed to have worked with them. The first closing I was getting married. The second closing my wife was pregnant. We’ve been through a lot of life stages together, and at this point they feel more like family. Honestly, you’re not just a number here…I don’t remember the last time I haven’t chatted on the phone with him without the call ending in a smile.”

Tom, a manager at Greenleaf Trust, and Robbin, a Forest Hills Central High School teacher, planned on downsizing their living space and upsizing the property around them. The almost-25 acre plot seemed just right. Now, they had to start the process to finance vacant land. “I had seen the billboards for GreenStone that referenced land loans, and I knew conventional lenders didn’t focus on that,” Tom said. “It’s a specialty service to provide financing expertise tied to vacant land. I reached out to GreenStone in December 2017, Devon Feldpausch was the individual that followed up, and that started our journey.” Devon Feldpausch, a financial services officer who also started his career with

Starting out

The property in Ada, Michigan was a split off of a larger parcel, and as a result, it needed a lot of work to make it buildable. First, there was the clearing. “There were quite a few trees on it, so the next step was we had to cut in a roadway,” Tom said. “It was quite the endeavor,” Tom said. “My son-in-law, my son and I forested the property, which included taking down 125 trees, and cut the drive in. We used a road builder to install what the civil engineers developed.”

As with most building projects, it became more involved along the way. The road had to be 18 feet wide, have culverts, correct drainage, grading, and they also encountered unstable soil. Building the Better Life

In February of 2020, Tom and Robbin began the construction of their home. “With the road being more involved than we had anticipated, we pivoted and decided to build our home as a barndominium,” Tom said. “Again, that was something that was a little unique, and GreenStone had more of an appetite for that than another lender would have.” Working with J. Visser Design out of Grand Rapids, the DeMeesters built a timber frame barndominium. They also designed the home to be energy efficient. They used structurally insulated panels (SIP) which have a foam core that creates a tight envelope for the building. “We were very conscious as we built this to preserve the exterior envelope of the home,” Tom said. “We didn’t even run electrical through the outside walls – we ran it in the interior.”

➡T om and Robbin DeMeester found the vacant land they had been looking for in Ada, Michigan - rolling hills, lots of trees, and is surrounded by a stream at the bottom of a ravine.

Partners — Winter 2022

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Working with Devon and the rest of the GreenStone staff exceeded our expectations, and we love the end result. The home also has radiant floor heat, and everything is tied to a radiant hydronic system, which means there isn’t any duct work or forced air. They have supplemented the radiant system with mini-split systems, so each room has its own ability to run air conditioning or a heat pump. This has allowed them to keep the perimeter of the home very efficient, as well as preserve a great view. “Because of the timber frame and SIPs, we’ve been afforded the freedom to have open, expansive views. It’s a unique building,” Tom said. “Ninety percent of the time, it’s just the two of us, but we built large common areas that allow space for our expanding family.” Tom said he and his family enjoy visiting around their 750-lb, 12-seat table made of reclaimed beams from a company in England.

“It’s the centerpiece of our home, and it’s the central gathering place for our family,” Robbin said. Ada journey

The property has beautiful, rolling hills, lots of trees, and is surrounded by a stream at the bottom of a ravine. They overlook the Grand River. The DeMeesters have developed trails on the property, and they’re landscaping their yard over time. Robbin started a small garden, and next season they’re building a raised bed garden. Their daughter, Emily, son-in-law Spencer, and grandsons Grayson and Hudson are planning on building on one of the other spots on the property. Their son Jared and daughter-in-law Jessica currently enjoy living in Chicago, and everyone knows they have a spot if they move back, too. Tom has enjoyed his years working with GreenStone. “I say it’s a journey with Devon, because we really started this in December of 2017 and took occupancy of our home in June of 2021. Over that timeframe, we got to know quite a bit about each other. We’ve met in person several times, Devon started a family, I had a grandchild, and we shared many life events.” The DeMeesters look forward to many happy years enjoying their home and property. “Working with Devon and the rest of the GreenStone staff exceeded our expectations, and we love the end result,” Tom said. “We’ve built homes before … but being part of this specific process, having the right setting, and working with the right people, has been a very good experience.” ■ ➡T om and Robbin enjoy hosting gatherings in their new home. They built large common areas that provide ample space for their expanding family.

Winter 2022 — Partners

TIME TO CHANGE THE TRADITION OF DEER SEASON? By: Jimmy Gretzinger Producer, Michigan Out of Doors TV

It might be time to change something that for years I didn’t think needed to be changed. The firearm opener here in Michigan has been on November 15 for as long as I can remember and I have always loved that tradition. I have even defended it for years to those who are trying to get the opener changed to the second Saturday of the month. However, recently I have come full circle on that idea. I now tend to agree and think the gun opener here in Michigan should be the second Saturday of November. I liked the November 15 opener because you always knew when it was and never had to think twice about it. It has been on the 15th for my entire life, so why change it. For years I liked the fact that having an opener on a random weekday meant fewer folks in the woods. Fewer hunters meant that I had a better chance of filling a tag. I grew up hunting state land in northern Michigan and it was crawling with other hunters on opening day! Anything to get a few more to stay home was a welcomed thing. That’s not the case anymore. This past season the opener fell on a Monday, which greatly limited the number of people able to hunt, something I was able to witness firsthand. Let’s start with the fact that both of my boys (and most around the state) that want to play basketball had tryouts starting on the 15th this past year. You can’t miss the tryout.

How many kids did that effect just this past season? Teachers and school officials, including a couple at the deer camp I visited last year, also have a tough time taking many days off. How many teachers that wanted to hunt last year couldn’t do so? I have no idea. Yes, they can hunt other days, but the tradition of the opener is gone for them and countless others. A mid-week opener means a big loss for business owners. In the current economy we need to do anything we can to promote more dollars for our restaurants, hotels, and party stores. A Saturday opener would encourage more people to travel to deer camps around the state and therefore spend more money in the small towns that need tourists in order to survive. How much money was not spent last

year that would have been with a Saturday opener? I know that change is hard and people hate it. However, I think it’s time we do something small that will help more people use the woods and help local economies here in Michigan. For years the DNR has reported that moving the opener to the second Saturday of the month would make no noticeable difference to the overall harvest of deer. If the harvest is not affected and more people can go hunting and spend more money doing so, who loses in this new system? I think we all win – it’s time for a change here in our great old state! ■ The opinions stated herein are not necessarily those of GreenStone Farm Credit Services. Partners — Winter 2022

GETTING AWAY TO ENJOY THE NATURAL BEAUTY OF WINTER We all know that the season of winter can make us want to just stay inside and forget about the cold. What if we told you that you could enjoy winter’s true beauty by doing several activities that could involve your family, you and your spouse, or your friends? One way you can do this is by renting a cabin in Michigan or Wisconsin! There are so many cities and “up-north” towns to do this, where you can find a beautiful view of what a winter in these amazing states have to offer. In Michigan, places such as Traverse City, St. Ignace or South Haven are perfect getaway spots. Whichever direction you want to head, there’s plenty to offer you an incredible experience. By booking a cabin, there is so much room for exploring both the outdoors and a new city to find an adventure. You may even find skiing and ice skating, destinations to go shopping, site seeing, and dining options.

In Wisconsin, there are unique cabins in cities across the northeast and beyond! The same experiences could apply here, where finding a new avenue in a new city could be just the answer you are looking for this winter. Or, if you would like to enjoy the beauty of the “country” feel of the cabin you are booking, there are several things you can do at the cabin, especially if you are going with a family or friends. Good stories always start with a fun event that happened, and we have just the activity for your family. If you have little ones, snow painting could be your answer. This is such an

easy thing to bring along with you and will create pictures your children will never forget! To make snow paint, just mix water and food coloring together in a spray bottle and boom – you have a colorful story waiting to be sprayed on the fluffy snow. The best part is that when it snows again, your family has a new canvas to start with! If you are getting away with friends, hunkering down in the cabin doesn’t have to be boring. Playing cards, watching suspenseful movies, exploring new winter beverages, or even having a cook-off could be a fun little getaway story to tell, too. Winter can definitely be a gloomy season. But, by being positive and making the most of what the season has to offer, you and the ones you love can add some great memories to the history books! ■

COUNTRY LIVING 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.

Country Minute: Three reasons for getting involved in your community

Country Minute: Tips for buying group hunting land Mike Forst, Country Living Financial Services Officer

At GreenStone, we’re right there in your community alongside you!

What’s a way to get even more out of your hunting land? Buy it with friends or family! ■

Winter 2022 — Partners

Commodity Cuisine... Beef Barley Soup

Instructions 1. Cook onions and garlic in oil over medium heat until softened.

PREP TIME: 20 minutes COOK TIME: 50 minutes

2. Add remaining ingredients and bring to a boil. Reduce heat and simmer covered about 40-50 minutes or until barley is cooked.

TOTAL TIME: 1 hour 10 minutes

3. Remove bay leaf and serve.

SERVINGS: 8 servings This homemade beef barley soup is loaded with nutritious veggies, tender beef and plump barley. It’s a complete meal in a bowl!

Source: https://www.spendwithpennies.com/beef-barley-soup/ ■

Ingredients • 1 tablespoon olive oil • 1 onion chopped • 1 garlic clove minced • 2 carrots sliced • 1 stalk celery sliced • 2 cups cooked beef • 6 cups reduced sodium beef broth • 1 can petite diced tomatoes 14-15 oz, undrained • 1/2 green pepper diced • 2/3 cup barley • 1 tablespoon Worcestershire sauce • 1/4 teaspoon dried thyme • 1 package beef gravy mix • 1 bay leaf • 2 tablespoons red wine optional • 2 tablespoons fresh parsley or 2 teaspoons dried • salt & pepper to taste

Partners — Winter 2022

WAYS TO STAY ACTIVE DURING WINTER MONTHS The hardest time of year to stay active is definitely during the winter. It is cold and it's easy to want to just stay in and bundled up! But we found some fun ways for you to get outside of your comfort zone and try some new ideas. One of those is winter rafting. It may be something you have never heard of before, but it is becoming more popular - especially in Michigan! Bundling up and floating down a river to see ice formations, beautiful snowy trees and bushes, and maybe even some wildlife could be the best workout you have done in a long time.

winter rafting services! Your guide will help you steer the raft, so you are able to take pictures of this wonderful experience.

Winter usually brings lots of snow and cold temperatures, so there are several places for you to check out and do winter rafting!

Wisconsin

Michigan In Gaylord, the Sturgeon River allows for you to capture all the glorious nature experiences while floating with a guide. This scenic river allows for a memorable trip with family members, and it is something different to do during the winter! Jordan Valley Outfitters is packed with fun adventures for the wintertime. They are best known for their

Winter 2022 — Partners

For more information on fun activities to do during a Michigan winter, please visit the State of Michigan’s Tourism website: Pure Michigan | Official Travel & Tourism Website for Michigan. Granite Peak is Wisconsin’s biggest ski resort and has the highest vertical drop for those more advanced! This is a resort for all sorts of enthusiasts, with 75 trails and slopes for beginners. There is lots of room for a great family trip as it is one of the largest resorts in the Midwest!

After a huge renovation project a couple of years ago, the Edgewater Hotel added a new ice skating rink with views of the Wisconsin state capitol in Madison! This new rink is 4,000 square feet, with plenty of room for your family and friends! For more information about winter fun and exercising in Wisconsin, visit Winter Activities in Wisconsin | Things to Do & Attractions (travelwisconsin.com). There are several fun winter activities that can keep you moving and in shape. These may include cross country skiing, snowboarding, ice skating, and shoveling snow! Don’t make this winter gloomy and sad – get out to experience some fun while making good memories with those you love! ■

LEARN

CROP INSURANCE NEWS: DRY BEAN PREVENTED PLANTING (PP) COVERAGE LEVEL CHANGES PP 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 crop insurance specialist for the most current levels and options for PP coverage. ■ PERSON TYPES & IDENTIFICATION NUMBERS

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. ■ ACCOUNTING & BILLING Premium bills were due before October 1. 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 won’t 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 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. ■ 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. ■

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 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. ■ 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. ■ 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 crop insurance specialist before the acreage reporting date. ■ Partners — Winter 2022

LEARN

Coverage & Stewardship Crop Insurance Customer Feature

Mark D. Zacharda grew up on Zacharda Farms, which was owned and operated by his dad and uncle.

➡M ark Klett uses GreenStone’s exclusive crop insurance analysis tool, Optimum, to present options to his customers, including the Zachardas.

Winter 2022 — Partners

He helped milk cows until they sold them at the turn of the century, and then he helped them cash crop. However, he didn’t go straight from school to the farm. He graduated from Michigan State University with a degree in agriculture science and earned a teaching certification from Saginaw Valley State University, and then he moved to Virginia to teach high school biology. “I really enjoyed being a teacher,” Mark said. “Farming can be stressful, but teaching can be even more so. They’re similar in a lot of ways. There are farmers who just get by…if yields aren’t terrible, and if prices aren’t bad, and you have crop insurance to back it up, they can make it. Some teachers also just phone it in, but if you want to really do what’s best by the students or optimize your farm’s profitability while doing what’s best by the environment, you have to really work.”

Mark married his wife Stephanie, and they have two daughters, Edie and Maisie. After living in Virginia for four years, a trip home to Michigan for the holidays inspired Mark to consider going into farming full-time.

me after a while. Now I’m out in the field, an eagle flies by, there are deer running around – I’m closer to nature.”

“My dad Mark and uncle Bob were getting older, and I wanted to work on the farm,” he said. “We moved back to Michigan in 2012 and my uncle retired in 2014, and since then my dad and I have been partners. So, I’ve been working on the farm for a majority of my life, but full-time for nine years.”

“It’s really gratifying when something breaks and you can repair it yourself,” he said. “I’m always tinkering and looking for ways to increase efficiency. For instance, if I build a rack on the trailer, it can hold two more bales, which means each trip is more efficient…Plus, I also like being my own boss.”

Job change

Mark made the change from teaching to farming for many lifestyle reasons.

Not only is being outside good for his mental health, but he also sees how it benefits the larger population.

“I enjoy working outside,” Mark said. “When I was teaching all day under fluorescent lights, it started to eat away at

“More people being aware of the natural world is a potential game-changer for the health of the planet,” he said. “People

Mark likes working with his hands, plus appreciates the autonomy.

aren’t going to care about things like climate change and waste reduction if they don’t spend any time outside. Production farmers have a huge and exciting role to play in enhancing the health of the planet.” Legacy

Mark’s family had already worked with GreenStone for 30 years when he came back to the farm. He got an operating loan through financial services officer Barb Dinsmore, and he worked with specialist Mark Klett on crop insurance. “I really enjoy working with Mark,” he said. “He farmed himself, so he totally gets it. He’s also super responsive. I don’t like to bug people outside of business hours, but this is farming, so when I text him, he responds even if it’s 9:00 p.m. on a Sunday night.”

Partners — Winter 2022

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Mark does a great job explaining all the changes and any new options in the crop insurance world from year to year.

Mark Klett uses GreenStone’s exclusive crop insurance analysis tool, Optimum, to present options to his customers. Using this special resource GreenStone has available for its crop insurance customers, he can review and compare the vast array of available options to generate a customized, data-driven recommendation for each farm’s specific needs. “Farmers are looking at types of policies, levels of coverage, and different options,” Mark said. “Since there are multiple levels of everything, it can get complicated. Optimum allows me to lay out the data for farmers, so we can compare the policies, narrow down our choices, and make decisions – basically, select the optimum choice.” Mark Zacharda also appreciates the policy assessment through Optimum and enjoys working with GreenStone on improving his coverage. “Mark does a great job explaining all the changes and any new options in the crop insurance world from year to year,” he said. “Mark introduced me to ECO and SCO, which have bigger premiums, but you get increased coverage. I’ve been thinking more lately about biting the bullet on these crop insurance premiums and taking advantage of the new programs to have that peace of mind.” For instance, Mark’s farm had a soybean field hit by a hailstorm in 2021. There was so much damage that they replanted, but the beans got too much rain, and the replanted ones didn’t have enough time to fully grow. “On that field, we’ll get maybe 20 bushels an acre,” Mark said. “The damage caused a poor yield. So then with crop insurance – I don’t like paying for it, but I feel very reassured having that backup. When you break down your costs per acre, insurance has become one of those costs you just have to factor in. With the changes in weather pattens and the volatility in the markets, a farming operation just has to have crop 41

Winter 2022 — Partners

insurance - it’s become a no-brainer. There are so many levels and programs, with a good agent and experience, each farmer can find where the sweet spot is for crop insurance.” Mark sees the recent weather extremes as another reason to explore his crop insurance options. For instance, the margin protection programs offer increased backup.

Crop Insurance Calendar... JANUARY

MARCH

“Mark Klett called it ECO on steroids,” Mark said. “With all the volatility in the world, including pandemics and climate change, the extremes we’re dealing with more and more are even more of a reason to take a look at enhanced crop insurance.” Crop insurance specialist Mark Klett has been working with the Zacharda family for years. “Mark Zacharda is one of the more analytical customers I have,” he said. “He always takes notes when we meet, asks questions, and keeps himself up to date. He understands that crop insurance isn’t just an expense – it’s a tool to help him.” Sustainable future

The Zachardas farm approximately 1350 acres and grow soybeans, corn, wheat, and hay. On their intergenerational farm, Mark is focused on taking measures to become even more sustainable. “Over time, we’ve made some changes,” Mark said. “We participate in Natural Resource Conservation Service (NRCS) programs through the USDA. We’ve put in filter strips and field borders to be a buffer between the field nutrients and the water, we’ve planted habitat areas and trees. Also, we concentrate on soil testing and following the recommendations after analysis. We have been an environmentally verified farm for our cropping system through NRCS since 2014.” The farm recently started using a yield and moisture monitor in their combine to put together yield maps.

Fruit Acreage Reports / Yield Reports & Pre-Acceptance Worksheets Due

Final date to sign up or make changes for a Spring 2022 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

Production reporting deadline for Fall 2021 harvested crops. Before you get busy in the field this spring, be sure to have your production reports completed, signed and submitted before the April 29th.

* P lease note that some dates can vary by County. Please check with your Crop Insurance Specialist for specific dates if you are unsure.

“It makes you wonder why you even put seed and fertilizer in certain parts,” Mark joked. “Really, it really helps you make better decisions about your inputs and where best to use them.” “I could work in the office all day long, looking at projections, evaluating how much profit we could make, analyzing data … but I don’t have time,” Mark said. “My wife, daughters and I like to spend our time together during the farm’s off season skiing, snowmobiling, sledding.” ■

Optimum Crop Analyzer Tool Working with GreenStone for your crop insurance just got better! Optimum is our exclusive crop insurance decision tool that helps you sort through the clutter of the many risk management options to deliver the crop protection and revenuemaximizing plans that fit your individual financial needs! Using this resource, available to members renewing or purchasing crop insurance through GreenStone, our crop insurance specialists

will review available options to generate a customized, data-driven recommendation for your specific needs.

Optimum lets you go through a robust simulation process to see how today’s insurance choices perform.

Optimum’s easy-to-read reports simplify the selection of the ideal coverage for your budget, to ensure your business will thrive during even the most challenging growing conditions.

All customers have different goals, and the Optimum tool can analyze most private and federal insurance policies to detail your best options, like the highest net indemnity, best cash flow over time, the most bushels to forward market, and the most subsidy funds.

We know you want to smartly spend your insurance funds on threats most likely to happen or would have the biggest impact on your business.

To generate the calculations and solutions, we use thousands of data points

from USDA for yields, prices, risk, and more. For example, by putting in your information and changing your coverage and plans, you can view the matrix that gives all the yield and price combinations. With Optimum technology, you can make confident and informed decisions for the 2022 crop year and beyond. Contact your GreenStone crop insurance specialist to review your customized report today! ■

Partners — Winter 2022

New Year’s Resolutions Tax and Accounting Recommendations! Chad Zagar, VP & Managing Director of Tax & Accounting

Winter 2022 — Partners

We had originally slated this article to highlight tax law changes under President Biden’s proposals and outline how our customers would be impacted by those changes. However, as of the writing of this article – nothing has been passed.

Since there are no significant tax law changes currently passed for 2022, we'll take the opportunity to instead highlight some observations and best practice recommendations that come straight from experiences the last year working with our customers and taxing agencies. Recommendations 1. Receive tax refunds via direct deposit and make tax payments online 2. File returns electronically

Tax Calendar... JANUARY

3. S end payments / payroll via ACH / and use direct deposit

Why should you consider these recommendations? COVID has shown us that operating using electronic means whenever possible is more efficient. We’ve seen the mail slowed in some instances, but even when the mail has been delivered in a timely manner, we’ve seen delays with processing it. The IRS is a great example. Amended returns mailed in, tax payments mailed in, and notice responses mailed in many times were not acknowledged for quite awhile. Many times additional notices were issued without acknowledgment of the initial mailed materials. This causes stress for the customer – so whenever possible, we recommend doing things electronically. Refunds are returned more quickly, payments are received timely, and it can reduce notices.

Farmers and fishermen pay your estimated tax for 2021 using Form 1040-ES – if you pay your tax in full, you have until April 15 to file your 2021 income tax return. If you don't pay your estimated tax by January 17, you must file your 2021 return and pay any tax due by March 1, 2022, to avoid an estimated tax penalty.

Eliminate the stress and help set yourself up for success. Stay up to date on the accounting books during the course of the year. Or if you use a tax accountant to complete your books, turn information into them routinely during the year. Being proactive will allow your tax consultant to help make quicker and better tax planning strategies for you, while also allowing more time to research those year end purchases.

Form 1099 due to recipients of certain payments made during 2021 for interest, rent, contract labor, veterinarian services, etc., including the new 1099-NEC Form. Provide employees copy of Form W-2 for 2021. 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.

4. C omplete your bookkeeping during the course of the year; don't wait to focus on it only at year-end!

Why? Tax accountants are always extremely busy near the end of the year working with customers – doing tax planning, year end forms, March 1 tax deadlines, and April 15 tax deadlines. This all provides a wave of work to get completed within a short time period for these individuals. This year I have noticed the stress to the farm operation for those that waited to compile all the information. Especially in a year like this, when many farmers have had a profitable year with increased commodity prices, doing the work all year makes it much easier at yearend. Not only does it give you up-to-date financial results that you can use to manage your business operation, it also saves you from the year end crunch. Stress gets added for many who are facing supply chain issues surrounding your most frequently used “tax planning” expenditures – i.e. equipment purchases and prepaying inputs. Even for those who have been keeping up on their accounting all year and know what they need to spend, it’s difficult to find available equipment or inputs.

Individuals make a payment of your estimated tax for 2021 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.

Employers file form 940 for federal unemployment tax.

MARCH Qualifying farmers file individual tax return (Form 1040) and pay tax due if no safe estimated tax amount paid in and owe over $1,000 in tax.

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S Corporations file a 2021 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 2021 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.

Payers must file Forms 1099 and 1096 (other than 1099NEC, which is due January 31) with the IRS. If these forms are e-filed, the deadline is March 31.

APRIL Individuals file a 2021 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.

Make the above recommendations your New Year’s Resolutions in 2022. And if you’re already doing all of the above, take your financial reporting to the next level!

First quarter estimate is due for 2022 for individuals paying estimated taxes.

Our tax accountants at GreenStone are ready to help you with your tax and accounting needs. Please contact your local branch to set up a meeting with your local tax accountant. ■

Partners — Winter 2022

Tech Tip:

Cybersecurity Tips Matthew Cosgrove GreenStone VP of Information Security

More and more of Santa’s elves transitioned to online shopping this past year instead of going into their local Santa workshop. According to a recent survey, between 2019 and 2020 there was a 20% increase in online shopping revenue in the United States. It is estimated that by 2025 that figure revenue figure will reach an astonishing $563 million per year. With the increased number of consumers choosing to shop online we need to be extra vigilant to protect ourselves from the cybercriminals regardless of the holiday or reason you’re shopping online! Here are four tips to make sure your online shopping trips are safe and secure!

Keep your devices up to date and clean – Make sure all of your internetconnected devices (PCs, smartphones, and tablets) are current on all operating system and application software updates, including antivirus and antimalware software. In my house, it is my second job making sure that these updates have been applied to all my families’ devices. These updates typically contain security fixes to make it harder for cybercriminals to gain unauthorized access to the device or application. Update Android and iOS (Smartphones or Tablets)

• Open your phone’s “Settings” app. – Android – Click on “System” > “System Update” – iPhone – Click on “General” > “Software Update” Update Windows Operating System (Personal Computers)

• Click on “Start” button > type “Update” > Click “Check for updates” • After you review the updates – Click OK > Click “Install updates” 45

Winter 2022 — Partners

Watch out for spam and phishing emails –

The more we shop online, the more we receive email messages from retailers highlighting upcoming sales or promotions. This is always a great time for cybercriminals to send their phishing emails to your inbox. To help you identify when things just aren’t quite right, here are just two of the of the more common phishing emails you might receive. • Fake shipping notification emails – these emails appear to be coming from USPS or FedEx and contain shipping numbers, barcodes, and other items to make them appear legit and cause you to click to see the status. • Fake retail store/product emails – these messages appear to be coming from retail stores offering great deals on hard-to-find items they contain deals that would be hard to pass up to entice you to click the link. Whether you are shopping with the gift card you received over the holidays, or just waiting for a normal delivery, always go directly to the company’s website using your preferred internet browser and check

the status or inventory there. Do not click on links or open attachments from unknown senders. Protect yourself from suspicious purchases –

Checking your financial account statements is not only a great way to keep track of spending but also a great security measure to make sure that the cybercriminals are not making purchases for themselves this holiday. • Limit the number of accounts you use to make holiday purchases and if possible, do not use a debit card linked to your bank account; instead use a single credit card. Most banks will attempt to help you recover funds if your account is compromised, but it can be a lot easier to get charges reversed when a credit card number is stolen. • Enable any notification services offered by your bank to alert you of suspicious purchases. Early detection is a great way to limit the headache that a compromised account can cause during this holiday.

Another online site, another login – Keeping track of your usernames and passwords for all the sites that we use dayto-day requires a lot of effort. Protecting your logins with a password manager is a great step. • Creating unique strong passwords for all your sites is the best way to protect your online identity. A password manager like LastPass or 1Password helps you manage all these passwords. My family’s password manager contains over 500 passwords for different online sites that we have registered for over the years. • Enable multi-factor authentication on sites that support that feature. Amazon and Google both support multi-factor authentication, by using MFA you are making it harder for cybercriminals to gain access to those online accounts. Hopefully, with the help of these tips, you will be ready to put coal in the stockings of the cybercriminals next year and you will be able to enjoy the season knowing that you are secure! ■ Partners — Winter 2022

3515 West Road East Lansing, MI 48823

Winter feature highlight... Tom and Robbin DeMeester had been actively looking for land to purchase for some time. Even before they sold their family home in Ada, they’d been searching for a large place that wasn’t clear-cut farmland. Read more on page 31.

Partners Winter 22

Articles inside

Tax Feature. With no big tax changes for 2022, here are some

Tax Calendar

Cybersecurity Tips

Optimum Crop Analyzer Tool

Crop Insurance Calendar

Crop Insurance Feature

Crop Insurance News

Patronage on March 17

Legislative Matters

Candid Comments

Ways to Stay Active During Winter Months.

GreenStone Story

Guest Column

Pause for Applause

Member News

CEO Comments

Guest Column

Sustainable Agriculture Feature.

YBSF Resources

YBSF Feature. Ben Kasik is using a variety of resources to continually educate himself about farming, including mentoring, conferences, and business planning support.

Market Outlook

Agriculture Blog Brief

Year-end Financial Review