Promoting the business success of our customers and the rural community
GreenStone FCS
Winter 2024
CUSTOMER FEATURE: DOODLE’S SUGARBUSH
TAX FEATURE: CORPORATE TRANSPARENCY ACT REVIEW
CUSTOMER FEATURE: GREEN POINT DAIRY
WINTER FAMILY FUN
+
CultivateGrowth Spotlight:
Zac Soltvedt
2024 CUSTOMER PATRONAGE TECH TIP: YEAR IN CYBERSECURITY REVIEW & TIPS FOR 2024
WINTER 24 5 YBSF Feature. As a young farmer running a row crop operation, along with a custom spraying business, Zac Soltvedt knows the secret to success in agriculture is having a strong work ethic, grit and curiosity.
22
5
31
39
22 GreenStone Story. This year, a total of $120 million will be returned to our loan customers through Patronage dividend checks. Each Patronage-earning member will receive a notification letter in mid-February outlining the amount of your check.
31 Country Living Feature. Daniel and Jennifer Krug are enjoying their newly-built barndominium-style home in Holly, Michigan.
39 Tax Feature. As you prepare for the new year ahead, there’s a new reporting requirement that could impact you – the Corporate Transparency Act (CTA)!
3 CEO Comments. President and CEO Travis Jones unpacks predicted fall yields and touches on recent customer satisfaction results. 11 Customer Feature I. Steve and Lynette Henson bought an Amish farm in Blanchard, Michigan back in 1998. Then, something surprising happened. 13 Customer Feature II. One of the largest decisions made by Green Point Dairy was the addition of an anaerobic digester on the farm’s Marlette, Michigan property. 15 Market Outlook. Can the U.S. avoid a recession altogether? Economists are projecting that, in fact, the U.S. can expect to avoid a recession. 21 FCS Title. Joint venture creates title agency to support GreenStone members and lower costs. 25 2024 Events. Mark your calendars for these upcoming informational and professional development seminars. 27 Directors’ Perspective. In November, a group of GreenStone board members and staff traveled to Washington, D.C. as part of the nationwide Farm Credit Fly-In. 29 Legislative Matters. Keep in mind that a visit with legislators might make a difference in educating someone. 30 PAC Progress. GreenStone’s voice for rural communities and agriculture is building relationships for your success!
33 Guest Column. Deer camp. Those are two words that can lite a fire in many Michigan hunters. 34 Winter Family Fun. As the holiday season winds down it is important to keep spending time with family. Here are five ways to make your cozy nights with your family more exciting this winter! 35 Reaching Our Financial Goals in 2024. Now that the holiday season is over, and we may have splurged a bit, it is time to set our budgets back on track to reach 2024’s financial goals! 41
Tech Tip. A Year in Cybersecurity Review & Tips for 2024.
8 Agriculture Blog Brief 9 Young Beginning Small Farmer Resources
Publisher’s Note: An elder lady shared on my community Facebook page recently how much she has enjoyed watching the local farmer work the fields around her for the last several decades. She was planning to move soon and as she watched the final harvest from that same window for the last time, she felt it important to share her appreciation for their tender care of the fields, the long hours committed day after day, and their dedication to feed and fuel the world and provide for their family. As we begin a new year, it made me hopeful that those types of thoughts are all around us! Silent reflections of appreciation, thankfulness, and gratitude for all the things around us. In fact, as I read this issue of Partners I too have a sense of admiration for the work of our customers, my teammates, and those we learn from. Customers like Zac Soltvedt who values a strong work ethic, grit and curiosity (page 5); the vision of Green Point Dairy (page 11); Steve and Lynette Henson’s adaptation into maple syrup (page 13), and the desire turned realization of the Krugs and their home (page 31). Teammates who make sure resources and support abound for our members – from grants for young, beginning and small farmers (page 9), to scholarships for those continuing their education (page 19), and seminars and events to network and learn (pages 18 and 23). Finally, for the experts like the deer camp authority from Michigan Out of Doors TV (page 33) and tax professional sharing business reporting news (page 39). And that’s just a sampling from what’s within these 40+ pages.
10 Keeping Forestry at the Forefront
As the calendar turns and the new year rushes at us once again, may we each pause as we look out the metaphoric window to recognize what’s most important and vow to find ways to acknowledge and embrace each in our daily lives. Cheers to 2024!
18 Member News
Happy reading,
20 Pause for Applause
Melissa
23 Behind the Scenes 24 Calendar of Events 26 Candid Comments
34 Country Living Blog Brief 36 Commodity Cuisine... Maple Dijon Salad Dressing 37 Crop Insurance News 38 Crop Insurance Calendar 40 Tax Calendar
This newsletter is published quarterly for the customers of GreenStone Farm Credit Services. Editorial Art & Design Amber Echlin William Eva Cassie Bowman Olivia Gallt Emma Moore Markie Heideman Melissa Rogers
Partners GreenStone Farm Credit Services 3515 West Road East Lansing, MI 48823 800-444-3276 marketing@greenstonefcs.com
CEO Comments:
Welcome to the New Year Happy 2024 to the best customers in the world. I hope all of our members had a very Merry Christmas and Happy New Year. A Year In Review
I don’t know about you, but 2023 flew by for me. Fall seemed especially busy, both with GreenStone responsibilities and family fun. Saturdays were especially fun. I think I was lucky enough to attend four Michigan State University football games and six University of Michigan games. (Thank goodness my wife Sue enjoys attending the games with me!) While this was not MSU’s most successful year, when attending their games I was able to spend valuable time with customers, employees and agricultural industry leaders. A couple of the leaders I was able to have discussions with included MSU’s Interim President Teresa Woodruff and MSU’s Dean of the College of Agriculture and Natural Resources Kelly Millenbah. I really appreciate our partnerships and relationships with these leaders and all ag leaders in our great states of Michigan and Wisconsin. While harvest this fall was extended a little more than normal, yields throughout our territory seem to have compared well with recent averages based on discussions with our members. With a very dry May and June, I think most of us are all very grateful for those results. The corn harvest did fight vomitoxin issues. However, when everything is calculated, I think our results will be solid. Your Association also had another strong year in 2023. Net income is estimated at $280 million for the second year in a row. Loan growth was 9% overall with all of our lending lines of business contributing to our growth. Our crop insurance and tax and accounting services also had strong, profitable years in 2023. Our growth by lending segment was as follows:
3
Traditional Agriculture
3%
Country Living
5%
Agribusiness
6%
Capital Markets
20%
Winter 2024 — Partners
Credit quality ended the year strong as did your cooperative’s operating efficiency rates. As you may already know, I am kind of competitive and like to keep score. So, I compare GreenStone’s financial results to the largest 11 other Farm Credit associations in the country. Final year numbers won’t be available before publication of this Partners issue, but through the first three quarters of 2023 GreenStone was again the top financial performer in the country when considering Return on Assets (profitability), Loan Growth, Credit Quality and Operating Efficiency! My prior boss and former CEO, Dave Armstrong, used to joke after a good year and say, “We got lucky again!” Well, I am lucky to be surrounded by teammates and leaders that consistently follow our Core Four Values, especially putting our Customers First and Delivering Quality. But our results aren’t lucky. They don’t happen without all of our 650 staff members going above and beyond, every day. This quarter I want to recognize the executive team and some of the Board members that have been part of our consistent success for many years. Executive Team years with Farm Credit and GreenStone:
- Cheryl Motz, Executive Assistant to the CEO – 41 years - Paul Anderson, EVP and Chief Credit Officer – 40 years - Beth Barker, EVP and Chief Human Resources Officer – 25 years - Ian McGonigal, EVP and Chief Sales & Marketing Officer – 23 years - Steve Junglas, EVP and Chief Information & Security Officer – 20 years - Melissa Stolicker, EVP and Chief Internal Auditor – 19 years - Pete Lemmer, EVP and Chief Legal Counsel – 15 years - Kim Brunner, EVP and Chief Financial Officer – 10 years
Board Members for over 10 years:
- Dennis Muchmore – Director for 21 years - Scott Roggenbuck - Director for 16 years - Ed Reed – Director for 15 years - Gene College - Director for 14 years - Bruce Lewis – Director for 12 years - Dale Wagner – Director for 11 years - Ron Lucas - Director for 10 years - Dave McConnachie – GreenStone Director for a total of 18 years That is an impressive group of leaders with years of experience at the helm of your cooperative! Again, our strong results don’t happen without all of our team members, and I want to thank them and the above individuals for their consistent contributions to your Association. Looking Ahead
Speaking of strong results, your executive team recommended, and your Board of Directors approved a Patronage distribution for March of 2024 of $120 million! This matches last year’s record payout and totals $960 million of Patronage paid to its members over the last 19 years. No bank or credit union does that for its customers. This year’s patronage essentially amounts to an average refund of interest paid to our members of 1.14 percent. We can’t be more proud to share our success with our owner/members. We have discussed in prior quarters that U.S. 2023 net farm income is expected to finish well below 2022. Based on discussions with members and current commodity prices, profitability margins are expected to be challenged again in 2024. However, there may be some good news entering 2024. While I was doubtful that it could happen, it appears the Federal Reserve may be able to guide our overall economy to a “soft landing” after battling inflation. (I am knocking on wood as I type this.)
beginning of 2023. If this trend continues, we may be able to take advantage of a number of simple and quick loan conversions for our members to lower rates on existing loans in 2024. It is important that we continue to provide our customers with value not only through our products and services, but through our expertise and resources to our members. Our team has put together an array of opportunities for members to learn, network and grow over the next several months. From forums for farmers, to supporting logger trainings, providing market experts to the dairy industry, helping guide future homebuilders through the construction process at our seminars, and a conference tailored to topics top of mind for young, beginning and small farmers, the expertise of our staff and industry leaders will be shared far and wide to help each of you in your personal and business goals. You can read more about these opportunities on page 25. Thank you for making 2023 another outstanding year. We look forward to helping promote the business success of our customers and our rural communities in 2024 and beyond. Please feel free to reach out to me any time if I can ever be of assistance. Thank you again for your membership and business!
Travis Jones
517-318-4144 travis.jones@greenstonefcs.com
At the December meeting of the Federal Open Market Committee (FOMC), the FOMC gave guidance that they actually may be ready to reduce interest rates during 2024. Predictions of approximately a 0.75% decline in the Fed Funds rate during 2024 fueled the stock market to new highs. With this expectation of falling short-term rates, long-term rates have already started to fall. For instance, GreenStone’s 10-year fixed rate is approximately 0.65% lower today than at the
Partners — Winter 2024
4
ALWAYS LOOKING FORWARD CultivateGrowth Feature:
As a young farmer running a row crop operation, along with a custom spraying business, Zac Soltvedt knows the secret to success in agriculture is having a strong work ethic, grit and curiosity.
5
Winter 2024 — Partners
GROW
He learned those values growing up around his grandfather’s farm in Seymour, Wisconsin. Originally going to school to be a machinist, Zac knew his real two passions were crops and the outdoors. In 2015, after the passing of his grandfather, Zac followed his heart, and with the support of his wife Amber, took over the family farm and didn't look back. “I didn’t like to be cooped up in a building on nice days,” Zac explained. “Honestly, I don’t even like being cooped up on rainy days. I have always liked being outside, running machinery and making business decisions.” When making those decisions, Zac has a simple philosophy. “In everything I do, I always try to do better than the year before no matter what the challenges are. Some years, that’s easier said than done, but that’s always the goal.”
“
In everything I do, I always try to do better than the year before no matter what the challenges are. Some years, that’s easier said than done, but that’s always the goal.
The other part of that philosophy: leaning on others with experience in the business. After working with another bank to help finance his farm, Zac wanted a lender that had more experience in the agricultural sector. He made his way to GreenStone, and now works with Financial Services Officer Corey Fanslau, who brings a wealth of knowledge in agriculture and lending. “GreenStone understands agriculture,” said Zac. “It’s really nice to have a banking institution that understands that a farmer’s financial records are going to look a lot different than a traditional business. I bounce ideas off Corey all the time and it’s nice to have him as a sounding board and as another tool in my toolbox.” Corey shares the excitement of this partnership. “It’s been a good relationship,” said Corey. “Zac, for being a young farmer, has shown a lot of vision for where he wants his operation to go. He’s supporting himself with a good nucleus of teammates to achieve his goals and become more profitable.” Zac takes advantage of GreenStone’s CultivateGrowth program that provides flexible loan terms and resources for young, beginning and small farmers.
➡ Zac grows corn, soybeans and wheat on his operation.
Partners — Winter 2024
6
One perk of CultivateGrowth is the mentorship program. It matches fellow young, beginning and small farmers with veteran farmers to share advice and strategies. Zac’s experience in the mentorship program is a testament to why it exists – to forge important connections and share experiences. “I was paired with a large grain operation,” said Zac. “They were very nice guys. It was nice to be able to ask questions. They were forward-thinking like I am. It was nice to get opinions on what does and doesn’t work for them.” As if farming 500 acres of corn, soybeans and wheat is not enough, Zac also spends his time running a custom spraying business. It was a passion he picked up early on in his farming career. “I started going out and working with customers my grandfather had worked with in the past,” explained Zac. “Then, by word of mouth, the business grew larger. I try to always be straightforward with what growers actually need and what chemicals they can go without.” Right now, Zac’s custom spraying business is covering 10,000
7
Winter 2024 — Partners
acres, and he says it will most likely stay around that number. “I value quality over quantity,” said Zac. “Before I take on more work, I need to make sure I can handle it and won’t be doing insufficient work.” Aside from growing crops, Zac’s future plans involve growing his operation. He’s currently looking at ways to acquire more land and weighing expansion options.
i
AGRICULTURE – OPEN FIELDS BLOG BRIEF
“We’re always looking at trying to expand if we can manage it, as long as we can still do a good job,” said Zac. “I always want to do more to hone in on the bottom dollar and take a look at what I can cut and what I can expand to get better margins. I want to fine tune our portfolio and figure out where it is we need to excel in.”
Be Aware: New IRS E-Filing Requirements for Year-End Forms!
Corey is always happy to assist in weighing those options.
The IRS has lowered the threshold by which it mandates you to file year-end forms electronically.
“Zac has been good at looking to the future and he has not been afraid to embrace new things,” said Corey. “He wants to control what he has now and as he moves forward, he will be able to acquire more land and control more land. His ultimate goal is to grow his operation.”
Sen. Debbie Stabenow Receives Friend of Farm Credit Award AgriBank District Farm Credit Council (ADFCC) presented its 2023 Friend of Farm Credit Award to U.S. Sen. Debbie Stabenow (D-Mich.).
GreenStone publishes regular updates on our Open Fields blog. Check out some of the posts you may have missed at www.greenstonefcs.com/openfieldsblog.
With the resources of GreenStone and his mentors at his side, the future looks plentiful for his operation. “He’s asking questions and looking for other folks to help him,” said Corey. “He educates himself and seeks good counsel when he moves forward so I think he will be successful as long as he keeps doing that.” And as someone who now has some years under his belt, he offers this advice to anybody considering a career in agriculture:
Dollars and Sense: Ditch the Credit Card and Opt for an Operating Loan No matter your farm scope or years in the business, having the cashflow to operate your business is a necessity. ■
“Don’t be afraid to work hard and get out there and do it. That’s the mindset of our business operation. You have to work hard. A lot of people just want to dream, and don’t want to do, but you have to do a little of both.” ■ ➡ Zac takes a question from one of his employees. ➡ Zac's operation houses a number of grain bins to store dry soybeans, corn and grain.
Partners — Winter 2024
8
CultivateGrowth Resources:
GRANTS FOR THE NEXT GENERATION! Grants for the Next Generation! GreenStone knows farming and logging isn't just about planting seeds—it's about nurturing the next generation of farmers, producers and timber professionals! That's why we're excited to announce the CultivateGrowth grants, uniquely-made for young, beginning, and small farmers, urban producers and timber professionals who are looking to take their education to the next level. Whether you're starting an operation from the ground up or embracing the legacy of generations before you, GreenStone gets it—competing in today's demanding industry isn’t getting easier! To help prepare you with the tools to make the best decisions for your operation’s future, our CultivateGrowth grants are here to provide a financial boost and connect you with essential resources. From farm consultations to industry-focused conferences, or even diving into numbers with GreenStone's tax and accounting services, this grant is your chance to expand your knowledge and equip yourself with the tools to succeed! Grant Details: Since 2018, the cooperative has reimbursed nearly $80,000 of agriculture-related education costs through the grant program. Again in 2024, GreenStone is providing up to $1,000 for GreenStone members and up to $500 for non-members who qualify as a young, beginning or small farmer or timber professionals.
9
Winter 2024 — Partners
Eligibility: • Young, beginning or small farmer – 8-35 years of age, or – Farming for less than 10 years, or – Sustain annual gross sales from agricultural production of less than $350,000 • Must be eligible to be a member of GreenStone, residing in Michigan or northeast Wisconsin Intended grant use must fall within one of the following categories: • Agricultural or timber-related programs/ events: educational course/program (onsite 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? Dollars are awarded on a first-come, first-serve basis so don’t wait to apply. Visit greenstonefcs. com/grants for more information. CultivateGrowth Mentorship: Ready, Set…Connect! Whether it’s a new farmer looking for perspective beyond the family’s operation, a veteran looking to start a new career in agriculture or even a timber professional interested in learning the ropes from an experienced logger, mentorship provides value beyond the classroom. It offers one-on-one, life lessons passed along first-hand from individuals who have succeeded - often after they learned how not to do something. Beyond offering reliable credit, financial services and grant funding, GreenStone understands the educational value mentors provide young and beginning producers. That’s why as GreenStone begins to wrap up the current CultivateGrowth Mentorship, we are excited to begin accepting applications for our 2024-26 program. Tailored for farmers, urban and diverse producers, and timber professionals, this program promises a unique mentorship experience set to commence in the fall of 2024. The CultivateGrowth Mentorship, designed to combine mentorship with enthusiasm and knowledge, often leads to life-long friendships. The program pairs
eager mentees with seasoned mentors, creating an opportunity to share insights, thoughtful conversations, and enduring connections. Applications are now live, and the fall of 2024 beckons aspiring mentees and mentors alike to partake in this unique adventure. It's an opportunity to cultivate connections, share wisdom, and embark on a journey of growth—one mentorship at a time. Those interested in cultivating their growth through mentorship can visit www.greenstonefcs.com/mentorship to submit their applications. Stay tuned to hear more about the friendships formed and the lessons learned from current and past participants, including the wrap-up of the 2022-24 CultivateGrowth Mentorship later this year. Resources Beyond GreenStone for Young, Beginning and Small Producers Loan Readiness Toolbox: The MSU Center for Regional Food Systems' Loan Readiness Toolbox aims provide support for food and farm industry entrepreneurs by providing resources tailored to them. As you begin your loan process, check out this Loan Readiness Toolbox to understand business financials and develop a robust business plan, ultimately preparing yourself to confidently apply for financing within the next 18-24 months. Learn more at www.canr.msu.edu/ resources/loan-readiness-toolbox-for-foodand-farm-businesses Wisconsin Beginning Farmers Guide: Take your farming plans and goals to the next level with the Wisconsin Beginning Farmers Guide. Newly launched in June 2023 by UW-Madison Extension, USDA agencies, and DATCP, this guide offers comprehensive information and resources to assist aspiring farmers in navigating the challenges of starting a farm by covering essential topics such as business planning, financial management, and accessing government programs and services. With a focus on practical advice and stepby-step guidance, this guide serves as a valuable companion for those embarking on their farming journey in Wisconsin. Ready to get started? Go to www.wisc.edu and search "Wisconsin Beginning Farmers Guide". ■
Keeping Forestry at the Forefront
Established in 1986, Michigan State University’s Upper Peninsula Forestry Innovation Center in Escanaba, Michigan is a hub for all-things forestry research. Recently, a group of GreenStone employees had the opportunity to peek behind the curtain and learn about the important work the center is doing. The center’s new state-of-the-art sugar shack focuses its research primarily on maple syrup and Christmas trees. The research is performed not only at the zerowaste center in Escanaba, but at forestry sites in Sault St. Marie, Michigan and Chatham, Michigan. The main center in Escanaba has 3,000 tree taps alone – funded fully by donations and grants. New to the center is a CDL evaporator and reverse osmosis system that will be used for the 2024 season. Jesse Randall, the center’s director, shared with us that there is a deficit of maple syrup in the world market, and there are several state and federal grants available to producers already in the business or interested in starting. You can read more about grant programs through the USDA by scanning the QR code below. Michigan State University is one of the only universities in the country putting resources behind forestry research, putting this facility at the forefront of forestry. ■
Partners — Winter 2024
10
Tapping into Success Steve and Lynette Henson bought an Amish farm in Blanchard, Michigan back in 1998 with one goal in mind: enjoy the peace and serenity of living in the country.
11
Winter 2024 — Partners
What they didn’t expect is that the farm would give them a brand-new hobby-turned-booming business.
producing more and more maple syrup – eventually deciding to sell it.
The farm’s former resident left tree tapping supplies behind, so when Steve and Lynette moved in and got settled, they gave it a go, and loved it! Soon, they began
“It was kind of a hobby at first, and then we enjoyed making it and had fun,” said Lynette. “There were a lot of maple syrup producers around us when we
started, so there wasn’t a huge market. We had to go to Detroit to sell our products.”
and equipment loans through GreenStone to help in the expansion of their business.
Fast forward to more than 25 years later, and their business, Doodle’s Sugarbush, LLC, has taken the market by storm. You can find their syrup in more than 200 grocery stores and restaurants across the state and country – something that took years of hard work and networking to accomplish.
“Traditional banks hadn’t always wanted to give us a loan for a maple syrup farm,” said Lynette. “GreenStone took us seriously and knew we had a full-fledged business. GreenStone has been really great to work with to help us pursue our dream of helping make it bigger and better.”
“You have to get in front of these stores for them to believe in your product,” said Steve. “It can be hard to do.”
GreenStone Financial Services Officer John Grassley works with Doodle’s to find finance options to help grow the business – something that excites him.
Doodle’s Sugarbush, LLC isn’t just known for their wide variety of syrups, but also maple-based products like maple cream, maple coffee and maple pancake mixes.
“They have been great to work with,” said John. “They have a passion for their business,
and you can tell that when you meet them. They put their all into their products, and they’re loving what they do. They’re taking something from nature and turning it into a product. It’s a unique product, and you can see it and taste it right at their farm.” Tasting that product is what the community will continue to do as Doodle’s makes improvements to their facility and pushes out more products. “It feels really good to help them achieve their goals,” said John. “They want to continue to be more efficient. They just set up a new packaging line that will help them achieve that.” “There’s a huge market now,”
said Lynette. “People love to support local and support Michigan.” As far as the future, this hardworking duo has no plans to slow down any time soon. With the support of their daughter Eliazbeth who helps when she’s home from college, there’s no limit to how much success they can tap into. “We hope to continue to increase our products and continue to grow. We hope to keep reaching out further from Michigan and across the United States,” said Steve. “As a husband and wife operation, it’s awesome to see the family dynamic and the dedication that they have,” said John. ■
“Mostly everything we do is made from maple syrup,” Lynette explained. “Maple syrup is a healthy sweetener; it’s a good sugar source. As we’ve grown through the years, we just keep expanding and adding more products. There’s lots of things that you can make with maple syrup.” The operation is difficult to forget – not only from its unique product line, but from its memorable name as well. “Doodle is Steve’s childhood nickname,” explained Lynette. “We decided to go with it for our business name to honor that.” It’s so memorable that they often see different generations of families stop by to support the business. “I take great pride in selling to people in the community, and then years later, selling to their kids and grandkids. We get to see families from the past.” And GreenStone takes pride in being a part of their team, as well. Steve and Lynette have been able to utilize farm real estate loans, operating loans
➡ (L-R) Lynette and Steve pose for a photo in front of their storefront in Blanchard, Michigan full of maple-based products.
Partners — Winter 2024
12
Pursuing Greener Pastures Geert Van den Goor has been measuring in acres instead of miles for as long as he can remember. Growing up on a farm in the Netherlands, agriculture has always been in his blood, and when he graduated from school in 1983, he pursued that passion and began farming with his brother.
Eighteen years later, Geert and his wife Gertie were looking for more opportunities to expand their farming operation, and when country regulations got in the way, they decided to move to the United States. There, Goma Dairy Farms was born in Marlette, Michigan. If you visit their property now, you will find a widescale dairy operation, but it hasn't always been this way. “We started in 1999 with 250 cows and 350 acres,” Geert reflected. “By the second year, we built a new barn for 600 cows.” And by 2006, Geert and Gertie had a brand-new parlor. As the years went on, the farm grew to 3,500 cows. A New Direction
Knowing their three children were not taking over the farm upon their eventual retirement, in 2015 Geert and Gertie began to evaluate the future of Goma Dairy Farms. Brent Robinson, a dairy farmer in neighboring town Caro, Michigan, worked as a nutritionist on Goma Dairy Farms in the past, and formed a friendship with Geert and Gertie. When he found that they were searching for the future operator of their farm, he threw out the idea for himself, along with his business partner, Brent Moyer, to eventually take it over. ➡ (L-R) Brent Robinson, Brent Moyer, Geert Van den Goor and Gertie Van den Goor visit the brand new heifer facility site.
13
Winter 2024 — Partners
“One weekend we were out around the campfire, and Brent asked if we had ever thought of them,” Geert recalled. “Two years later, we put a plan together on how we were going to do it.” By 2019, Brent and Brent’s farm, Paramount Enterprises Dairy merged with Goma Dairy to be known publicly as Green Point Dairy.
Geert says the secret to the success is leaning on everyone’s individual expertise. “Everybody respects the qualities of each other,” said Geert. “We use each other’s qualities very wisely.” GreenStone VP of Agribusiness Lending Tara Parr, who has been instrumental in the financial side of the merger, couldn’t agree more. “Geert and Gertie are very proactive and good decision makers, and Brent and Brent are a breath of fresh air,” said Tara. “The merging of the two companies was pretty seamless.” Going Green
One of the largest decisions made by Green Point Dairy was the addition of an anaerobic digester on the farm’s Marlette, Michigan property. Energy companies SJI and REV LNG installed and run the digester that turns cow manure into methane gas.
“It says a lot about GreenStone that Travis visits these operations,” said Tara. “He wants to be involved at all levels.” This visit was especially special for Geert and Gertie, who have worked with GreenStone since they came to the United States almost 25 years ago.
with the construction of a state-of-the-art heifer facility. Once finished, it will be able to house heifers, securing a successful future for the farm – allowing Geert and Gertie to rest easier knowing as they inch closer to retirement, the future is bright for the operation they helped build.
“It was exciting that the CEO was interested in visiting us,” said Geert.
As the years go on, GreenStone will be there to support what’s in store.
Sitting around the table with hot coffee topped off with farm-fresh milk in hand, Geert explained that GreenStone has helped on a number of projects and expansions over the years, and he’s thankful for the ruralfocus of the cooperative.
“I can’t really imagine doing anything else,” said Tara. “I’m grateful to be able to help farmers every single day.” ■
“In 2005, when we did a big expansion, we got the best package for what we needed with GreenStone,” said Geert. “We have a lot of qualified people around us at GreenStone.”
For GreenStone employees like Tara, it’s “The company showed up, and it was the first just another day doing what she loves – supporting agriculture. time a salesperson talked a normal language and had something we actually wanted to “The best part of my job is the people. I learn more about,” Geert explained. get to build a lot of relationships,” Tara explained. “This is not a transactional The addition of the digester comes after business. Understanding the business and the farm already installed a machine that family dynamics is all part of building that separates manure from the sand used for relationship.” the cow’s bedding. It also cleans the sand to be continually reused for the cows. This machine paved the way for the digester – because manure cannot be turned into gas unless the sand is first removed.
Moving Forward
Brent and Brent’s plans for the future of Green Point Dairy are already underway
Geert and Gertie, along with Brent and Brent, believe that a step toward sustainable farm practices is beneficial for everyone. “The future of agriculture is going to revolve and evolve around sustainability,” explained Brent Robinson. “Creating a new system that functions with business models and biological models working together to create an ecosystem that can work long-term for the planet and people are the first steps toward this.” Recently, GreenStone President and CEO Travis Jones, joined other members of GreenStone’s staff on a visit to the farm to check out the sand separating machine and the digester to learn more about how they work. ➡ (Top right) The digester recently installed on the farm turns cow manure into methane gas. ➡ (Right) Brent Robinson explains the digester to GreenStone employees including President and CEO Travis Jones. Partners — Winter 2024
14
Winter Market Outlook:
Turning the Corner By: Therese Hill, GreenStone Regional Credit Manager
Can the U.S. avoid a recession altogether? Economists are projecting that, in fact, the U.S. can expect to avoid a recession.
15
Winter 2024 — Partners
Real Gross Domestic Product (GDP) continues to grow, but at a reduced rate, and unemployment is projected to increase through the first quarter of 2025. These factors taken together indicate this should lead to inflation continuing to moderate, reaching the Federal Reserve’s (Fed) 2.0% target. This in turn will allow the Fed to relax monetary policy and to reduce interest rates later in 2024. The Fed raised its target rate range to 5.25-5.5% in July, and at their September and November meetings opted to hold that range. By holding that range, they continue to assess cumulative tightening and monetary policy since there is an expected lag time to see the results of said actions. It is estimated that Core Inflation, which excludes energy and food, will decrease to 4.0% year over year (YoY) fourth quarter, will slow to 3.0% second quarter of 2024 and fall to 2.8% by year-end 2024, putting the rate of inflation well on its way to the Fed’s goal. The job market held up remarkably well throughout 2023, despite tightening monetary policy. The job market has continued to show positive gains with 165,000 jobs in August, 297,000 in September and 150,000 in October. While these are well below 2022 job growth of 399,000 per month on average, it remains evident that the labor market has remained strong and giving the Fed confidence as it drives policy towards avoiding a recession. On the other hand, the housing market has been a contradiction at times. Housing affordability fell this summer to the worst levels since 1985 due to the cost of homes and the high interest rates. Potential sellers are unwilling to give up the low interest rates on their existing mortgages, which in turn is keeping inventory low and supporting high prices. The low inventory of existing homes has helped to support the single-family new construction starts. After a small correction earlier in 2023, tied to increase in interest rates, new construction has rebounded in the third quarter to an estimated annual pace of 961,000 new housing starts. Global Economic Outlook
The global economic recovery from the COVID-19 pandemic has remained slow and uneven, partly due to Russia’s invasion of Ukraine. Economic activity continues to fall short of pre-pandemic levels.
“
The job market held up remarkably well throughout 2023, despite tightening monetary policy. The job market has continued to show positive gains with 165,000 jobs in August, 297,000 in September and 150,000 in October.
Monetary policy has tightened down in effort to reduce inflation and withdraw from fiscal support given the high debt loads held by individual countries and economies. The U.S. and Switzerland both acted decisively to resolve debt ceiling issues and financial turbulence in 2023 which helped the global economic outlook. Actions such as these have little room for error but are needed by the Central Banks to relieve financial stress, restore price stability and to continue to push inflation lower. One of the major forces that continues to hold back global recovery is the ongoing conflict between Russia and Ukraine. The conflict has disrupted supply chains and impacts the movement of commodities such as fertilizer and grains, as well as oil. And now further disruption to the world’s economy could result from the war between Israel and Hamas. If the conflict expands and escalates, it could bring Israel into conflict with Iran, a supplier of arms and money to Hamas. This could push oil prices to $150 per barrel and put major pressure on the world economy. Two major oil producing regions in or on the verge of war, threatens the global economy. AGRICULTURAL ECONOMIC OUTLOOK – Q4 2023 – WASDE November Report
Corn – The November 2023 World Agricultural Supply and Demand Estimates (WASDE) report for 2023-24 corn calls for larger production numbers along with higher domestic use and exports, but also larger ending stocks. The corn production forecast increased 1.9 bushels for an estimated 174.9 bushels per acre average.
This takes total production 170 million bushels higher to 15.2 billion bushels and 11.1% YoY growth. The estimated usage of corn for feed and ethanol were both increased along with exports, but these increases still fell short of the estimated production increase. This results in higher ending stocks domestically and lowers season-average corn price to $4.85 per bushel, or a drop of 10 cents per bushel from last month’s report. Globally, corn/coarse grains are facing a similar situation to U.S. corn with increased production and increased ending stocks. China is sitting on stockpiles of nontradeable corn and Brazil is coming off a record corn harvest. These two factors coupled with the large sorghum crop, a similar coarse grain and alternative to corn, with production predicted at 322 million bushels, which is up 71.3% from last year. Soybeans – The updated outlook for
2023 U.S. soybeans indicates increased production and increased ending stocks. This year's crop is estimated at 4.13 billion bushels, up 25 million from the previous month, however crush and exports have remained unchanged. This will drive ending stocks higher to 245 million bushels. The US season-average price for soybeans remains unchanged from last month at $12.90 per bushel. Soybean oil price is was reduced 2 cents to 61 cents per pound, with meal remaining unchanged at $380 per short ton. Export markets for both U.S. corn and soybeans have felt resistance given both the strength of the U.S. dollar and strong export competition from Russia and Brazil. Partners — Winter 2024
16
In addition, the political tension between the U.S. and China has reduced China’s interest in U.S. corn and soybeans. To turn the tide on the export markets to be more favorable for U.S. farmers it will take a poor Brazilian harvest, a resurgence of Chinese demand or a weakening of the U.S. dollar. Farmers have been reluctant to sell corn at these lower prices, as they are flush with cash coming off the past two years of record farm earnings. They have been more willing to let go of soybeans, however, at current market prices. This has left elevators hungry for more corn and looking to capture profits through the large carry in the markets. Corn is expected to move in January, February, and March to generate the cash needed for the 2024 crop and to pay down operating lines of credit with high interest rates. Dairy - The dip in Class III milk prices
in June/July was more of a “V-bottom” as prices rebounded back up to $18.39 at the end of September. Dairy cow culls were strong through the summer due to high beef prices and the poor dairy profit margins. For the first eight months of the year, dairy producers sent 121,700 more cows to packing houses than the same time period in 2022. The dairy herd also shrunk
by 32,000 head during this timeframe. With the rebound in Class III prices this fall, strong butter prices holding up Class IV and retreating feed costs, cull rates dropped significantly lower this fall. Dairy cow slaughter volumes in September were 20,000 head lower than the prior year and the lowest monthly total since 2014. Despite this drop, the dairy herd continued to contract, likely because fewer dairy heifers were available to replace cows sent to slaughter. As of July 1, there were 3.65 million dairy heifers on hand, which is the lowest mid-year tally since 2004. This tight heifer supply will limit rapid growth in the US milk-cow herd throughout next year. According to the November USDA report, monthly milk production was down for the fourth consecutive month compared to 2022. Although the report shows Michigan increased its herd size by 11,000 cows from 2022 to October 2023, the total number of milk cows on farms in the 24 major states was 8.91 million head, 19,000 less than October 2022 and 5,000 less than September 2023. Domestic consumption of whey protein concentrate is tightening inventories, but demand for cheese and milk powder has been less exciting, and concerns about a setback in U.S. consumer
spending or a global economic slowdown continue to worry the trade. The forecast for the 2023 average milk price now sits at $17.10 with Class IV at $19.20 and an allmilk price of $20.70. Pork – 2023 will be remembered by most
pork producers similarly to the difficult years of 1998 and 2008 due to the sizeable losses per head suffered. Packer margins were also very challenged, particularly in the first half of the year, compounding profit issues for larger, integrated producers. While prices received for market hogs were much higher than in those years, they have been significantly below production costs this year. High feed costs remain the main profitability issue for producers in 2023. Those have moderated in late Q3 and into Q4, however key nonfeed expenses such as labor have also risen this year. Hog futures prices have been quite volatile throughout 2023 and are likely to remain so, highlighting the need for margin protection/risk management. 2023 export demand has been strong, but domestic demand has lagged. 2023 US pork production has been above 2022 levels driven in part by improved productivity per sow. The 2023 losses are triggering some contraction of the US sow herd, which is providing optimism for summer 2024 profits, along with the recent drop in feed ingredient costs (corn and soybean meal). Fruit - US apple production is estimated
to exceed 10.5 billion pounds in 2023. Michigan again is expected to have a large apple crop, after a record production year in 2022 of 1.36 billion pounds. Apple growers continue to be cautiously optimistic that with higher level of supply, price will hold, and overall profitability will remain. Production of Michigan tart cherries continues to decline statewide with an estimated 108 million pounds expected to be harvested in 2023. Weather in 2023, along with continued pressure from imports from countries like Turkey have contributed to this lower production number. The Traverse City region, which produces much of the tart cherry crop in Michigan, has seen aggressive tart cherry orchard removal over the last 5 years. Labor and production costs have also contributed to this decline in orchard acres and production. Overall profitability for the growers continues to be at or below breakeven. ■ 17
Winter 2024 — Partners
CONNECT
NEWS: Calling All Women In Ag! Here are two conferences encouraging women in ag to come together! 2024 Farm Women’s Symposium (Michigan) Recently announced by the Farm Women’s Symposium committee, they will hold the 2024 annual conference on March 5-7, 2024 in Traverse City, Michigan. The event provides women opportunities for leadership and development, enhancing communication and management skills, building effective family teams, and developing a network of supportive friendships.
2024 Ladies Day Out (Wisconsin) This year’s Ladies Day Out Conference will be held for our GreenStone members on Wednesday, February 14 at the Radisson Hotel & Conference Center in Green Bay, Wisconsin! Guest speaker Annaliese Wegner, Modern Day Farm Chick, will be speaking on women coming together and building their confidence in ag! Use this QR code to register! ■
GreenStone will once again provide $150 scholarships 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: www.farmwomenssymposium.org
Partners — Winter 2024
18
Congratulations to the 2023 Deer Challenge winners! More than 100 hunters participated in our Wisconsin Deer Challenge and competed for a chance to take home prizes. With hunters as young as 9 years old competing, and racks up to 17 points, there was no shortage of talent this hunting season! Big Buck Contest Winners 1. Derek VandeHey – $400 DePere – 35 score - with a 14-point buck (pictured below)! 2. David Paplham – $200 Two Rivers – 34 score 3. Taylor Semingson – $100 Strum – 33.88 score Junior Buck Contest Winners 1. Scott Daniels – $200 Shiocton – 30.5 score – 16-point buck 2. Lucas VandeHey – $100 DePere – 28.5 score Gift Card Winners 1. Luke Springstroh – Appleton 2. David Sauer – Mishicot 3. Isaac Nell – Algoma 4. Jason Selle – Bear Creek 5. Daryl VanGeffen – Bear Creek 6. Chris Hamilton – Iola
GREENSTONE EDUCATIONAL SCHOLARSHIPS AVAILABLE!
7. Nate Laude – Shawano 8. Joey Jeske – Manitowoc 9. Todd Anderson – Clintonville 10. Austin Stodola – Luxemburg Game Camera Winner 1. Justin Dragosh – Algoma First Deer Trophies 1. Reese Seefeldt – Coleman 2. Nolan Flannery – Freedom 3. Easton Fellner – Sturgeon Bay 4. Jamison Van – New London 5. William Neely – New London 6. Ellee Van – New London 7. Riley Nett – Bonduel 8. Isaiah Zuehl – Clintonville 9. Alyssa Bouche – Luxemburg 10. Cameron Bouche – Luxemburg Thank you to all the hunters who participated in GreenStone’s annual Wisconsin Deer Challenge – we hope we helped make your hunting season a success! ■
GreenStone is committed to supporting the agriculture industry’s future leaders and is happy to once again award scholarships to both incoming college freshmen and upper classmen pursuing a degree in an agriculture-related field. From farming, to agribusiness, timber, natural resources and more, all students are encouraged to apply now! Incoming freshmen planning to earn a four-year degree are eligible for a scholarship of $2,000, while incoming freshman attending a two-year college program are eligible for a $1,000 scholarship. In addition, GreenStone also offers $5,000 scholarships to current college freshmen, sophomores, and juniors pursuing a degree in agriculture, natural resources and timber related fields. Applications are now being accepted for both programs. For complete program guidelines and applications, visit greenstonefcs.com/scholarships. Application deadline for both scholarships is March 1, 2024. ■ Annual Report Notice This is an official notice that the 2023 GreenStone Farm Credit Services annual report will be available for viewing online at www.greenstonefcs.com by Friday, March 15, 2024. In addition, the annual report will be mailed to all stockholders within 90 days of year-end. By regulation, GreenStone is required to send a copy to each stockholder, regardless if it is a duplicate mail or email address. ■
19
Winter 2024 — Partners
Pause for Applause... National FFA’s 2023-24 president is from Michigan! Amara Jackson is an alumna of the Concord FFA Chapter. Congratulations Amara! VP of Agribusiness Lending at GreenStone, Sara Trattles, was recently appointed by Governor Gretchen Whitmer to serve as the Michigan Soybean Promotion Committee. The committee is in charge of developing the procedures relating to Michigan’s soybean marketing program. The 2023 Wisconsin Farm Bureau’s Farming for the Future and Outstanding Ag Professional Awards were announced recently. Congratulations to the following Farming for the Future winners: Jacob and Eliza Boboblz, Sydney Flick, Brad Laack, and Victoria Wachholz. The finalists for the Outstanding Ag Professional awards are: Kaitlyn Riley, Julie Sweney, Brooke Trustem, and Tammy Wiedenbeck. Congratulations to all of these individuals for these impressive accomplishments!
Beth Wernette, Appraiser in GreenStone’s Mount Pleasant office, recently won the 2023 Michigan Farm Bureau Young Farmer Discussion Meet! She will move forward to represent Michigan in national-level competition. Congratulations Beth. 2023 Michigan Farm Bureau’s Excellence in Agriculture award went to Jackie and Chris Sanford. Jackie an appraiser out of Greenstone’s Concord office. Jackie is one of many GreenStone is proud to have on our team! Other winners of the 2023 Michigan Farm Bureau Young Farmers Awards are: Mitch and Brandie Kline for the Young Farmer Achievement, Elaine Palm for the Young Agriculture Leader, and Drew Bordner for the Young Agriculture Employee. Congratulations to all these young farmers achieving success!
SERVICE ANNIVERSARIES JANUARY:
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.
Emily Beaverson Christina Stants Riley Koller Rhonda King Angela Rogers Samuel Schafer Denise Benjamin Pamela Pionk Kimberly Clum Jill Martinez Tammy Olney
FEBRUARY: 5 5 5 10 10 10 15 15 20 20 40
Drew Bliss Ross Eisenreich Nathan Burns David Godi Jordan Bosley Cory Cooper Kelly Kranz Teresa Winacoff
MARCH: 5 5 5 5 5 10 15 20
Michelle Bartkovich 15 Emily Kleihauer 5 Hannah Fessler 5 Jeremy Reineke 5
Have a proud moment to share? Let us know about it. Contact us on social media or by email at: marketing@greenstonefcs.com
Partners — Winter 2024
20
against potential defects and unknown risks that could arise after the buyer has purchased the property. Title companies can issue both owner’s and lender’s policies: the owner’s policy protects the owner’s interest in the property, and similarly, the lender’s policy protects the lender’s interest in the property. GreenStone maintains close relationships with each selected title company and is able to closely monitor the service provided to our borrowers and staff. Each title company must pass cyber security and compliance requirements, as well as agree to uphold title insurance standards set by GreenStone.
FCS Title–
Supporting GreenStone Members Joint venture creates title agency to support GreenStone members and lower costs. GreenStone strives to provide excellent, high-quality service, while creating a pleasant experience for our borrowers. One way GreenStone has been doing this is by identifying the appropriate business partners in the marketplace which includes select title companies to work with for our members' real estate loan transactions. Title Insurance is a vital component
21
Winter 2024 — Partners
as it provides protection to both the buyer and lender, which is exactly why GreenStone has chosen to work with a select number of title companies for our member’s transactions. After thoroughly examining public records to ensure the buyer has legal access to and ownership of the land, the title company issues the title insurance policy. Title insurance protects
In 2019, GreenStone formed a joint venture with ATA National Title Group to create FCS Title Agency to streamline the loan process while providing high quality service and contributing to the financial return to our members. Title insurance is centralized within FCS Title Agency to help ensure a smooth, consistent, and efficient process. ATA National Title Group offices assist in closing the loans and performing settlement services, making it convenient for our customers as there are over 25 locations throughout Michigan. By utilizing this joint venture, GreenStone customers see instantaneous savings in lower closing costs. In addition, GreenStone can give back more to our customers in the form of Patronage as a result of this joint venture being used, as opposed to paying an outside title company for these services. GreenStone encourages all our members to use FCS Title for their next real estate transaction in order to benefit from the partnership GreenStone has established to support our members. GreenStone continues to evaluate the title service process to ensure we provide top-tier service. We value our borrowers’ opinions, and encourage you to provide feedback to your financial services officer or local branch! ■
The GreenStone Story:
It Pays to Partner! Membership with GreenStone means money back in your pocket This year, a total of $120 million will be returned to our loan customers through Patronage dividend checks. Each Patronage-earning member will receive a notification letter in mid-February outlining the amount of your check. That letter will include a personal invitation to join in on a celebration on March 12 at your local branch. Enjoy refreshments, a celebration of you, and of course, the opportunity to pick up your check. Our ability to give back to you, our member-owners, is the direct result of your success and your trust in GreenStone. This partnership reflects our commitment to do all we can to assist our members through unprecedented times, seasons of profit and cycles of challenges. As a financial cooperative, it is necessary for GreenStone to generate strong earnings and maintain adequate capital levels to help ensure we remain a dependable source of credit for years to come. In support of its members, the cooperative continues to build and grow for the future. Patronage, earnings, and capital, combined with strong loan growth in 2023 and solid customer satisfaction and employee engagement are just a few key reasons our partnership with members will be prosperous long-term. Personal relationships and partnerships with our members are at the core of our values. We hope you’ll join us on March 12 to celebrate you and all the ways it pays to partner! Have a question about Patronage? Check out the detailed FAQ section on our Patronage page by scanning this QR code or at www.greenstonefcs.com/patronage. ■
Partners — Winter 2024
22
Behind the Scenes In this behind the scenes, three GreenStone employees share how their role allows them to support rural communities and agriculture.
Ashley Deloney, Loan Post Closing Manager, 6 Years of Service How does your role help carry out GreenStone’s mission of supporting rural communities and agriculture? My team reviews loan documentation and title work post close. We ensure documents have been properly completed, and the title work issued is accurate and provides proper protection for both our borrowers and for GreenStone. In my specific role, I work with our approved title companies to ensure they are upholding the standards they have agreed to in regard to title insurance, customer service, compliance, and cyber security. I also work with our sales and operations teams to help improve processes and documentation. What do you enjoy about your role? The most enjoyable part about my job at GreenStone is getting to interact with so 23
Winter 2024 — Partners
many people with various backgrounds and goals. Everyone is different and it’s always fun and interesting to understand people’s personal goals and then to watch them accomplish them. How does your portion of the loan process ensure great customer service? We make sure that our borrowers are properly insured and protected. By doing this, our customers can breathe easy knowing they have a free and clear title, and proper access to their land. What do you enjoy in your free time? I love spending time with my husband and daughter, baking, and knitting (a new hobby!). How has your work changed over the years? The legal department has restructured in order to create specialization. Each team within the department has a specific set of duties that ensure we and our borrowers are properly protected. We have pre-close, post-close, and servicing teams - allowing for each team to be experts in their respective roles.
Amy King, Compliance Manager, 6 Years of Service How does your role help carry out GreenStone’s mission of supporting rural communities and agriculture? As a legal compliance group, my team and I function as internal support to other departments within GreenStone. We work together to deliver quality loans to our customers so they are better equipped to support their way of life and help feed the world. What do you enjoy about your role? I enjoy collaborating with individuals from other departments within the GreenStone. I find I am continually learning something new about myself or the industry through our collaborations.
How does your work ensure great customer service? The legal process at GreenStone provides both a pre-close and post-close review of loans. Through the legal review process, the team works diligently to ensure all applicable regulatory procedures are being followed, assist in identifying intervening liens prior to close, and certify the completed or booked loan can be pledged to AgriBank. What do you enjoy in your free time? I enjoy being outdoors, spending time with family, and traveling. How has your work changed over the years? While the legal review and title review process has generally stayed the same over the last several years, we are always looking for new efficiencies in the review process and additional ways the Legal Department can be a continued resource to our customers.
Sherry Vasser, Loan Certification Specialist, 1 Year of Service How does your role help carry out GreenStone's mission of supporting rural communities and agriculture? As a certification specialist, I support GreenStone’s mission by ensuring each loan in its final stage has been completed with the necessary review standards that will allow our customer a smooth process going forward. What do you enjoy about your role? I enjoy that every day that I will learn something new, and this will enable me to be the best I can be.
that each customer’s loan transaction has a professional legal review within the loan process from the start to the finish. The team works diligently within the legal review process to ensure all applicable regulatory procedures are being met and assist in identifying intervening liens prior to the closing of the loan. The final review then certifies that the completed loan can be pledged to AgriBank. What do you enjoy in your free time? I love to spend time with my grandchildren and passing along some traditions of the past that I also learned from my family mentors. I also enjoy movies, great food, and reading a book. How has your work changed over the years?
How does your role ensure great customer service?
Technology has changed everything and
The legal process at GreenStone ensures
efficient with less paper involved. ■
has made processes faster and more
Mark Your Calendar... JANUARY
15
GreenStone Closed In Honor of Martin Luther King, Jr. Day
16
DBA Dairy Strong Conference (16-18) Madison, WI
24
Great Lakes Crop Summit (24-25) Mount Pleasant, MI
Potato Conference 31 Winter (1/31-2/1) East Lansing, MI
FEBRUARY
5
GreenStone CultivateGrowth Conference (5-6) Lansing, MI
Lakes Regional Dairy 8 Great Conference
13
MARCH GreenStone Producer Forum Caledonia, MI
Day Out Conference 14 Ladies Green Bay, WI GreenStone Producer Forum
15 Kingston, MI 19
GreenStone Closed In honor of Presidents Day
20
GreenStone Construction Seminars (20-27) Various Locations
22 Outdoorama (22-25) Novi, MI
Women’s Symposium 6 Farm (5-7) Traverse City, MI Sports Show 7 Ultimate (7-10) Grand Rapids, MI Day 12 Patronage All Branches GreenStone Sponsored SFI Training
19 Gaylord, MI
Sponsored SFI Training 21 GreenStone Harris, MI Public Service 26 Wisconsin Farm Show (26-28) Oshkosh, WI
(8-9) Mount Pleasant, MI
Partners — Winter 2024
24
2024 Events Mark your calendars for these upcoming informational and professional development seminars. 2024 SFE Core Training for Loggers Success in the timber industry demands strategic planning, hard work, effective management, and unwavering commitment. Recognizing the vital role of these elements, GreenStone has been a steadfast financial ally to the lumber business for decades. In a continued effort to support timber professionals and provide opportunities for them to expand their knowledge while completing their essential Sustainable Forestry Initiative (SFI) trainings, GreenStone is collaborating with MSU Extension Sustainable Forestry Education (SFE) program to host two SFE Core Trainings in March 2024. These free events being held in northern Michigan are among several training options available for loggers. These trainings will cover ecology, silviculture, MIOSHA Safety, best management practices (BMP)aim and timber industry updates to fulfill SFE core training requirements. • Tuesday, March 19 at Treetops Resort in Gaylord, MI
25
Winter 2024 — Partners
• Thursday, March 21 at Island Resort and Casino in Harris, MI Running from 8:00 a.m. to 4:00 p.m. EST, both forums will include complimentary breakfast and lunch. There is no cost to attend, however registration is required by SFE. For more details, visit www.greenstonefcs.com/SFETraining. 2024 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 with both online and in-person options to choose from during February and March. Construction Seminars are free to attend but registration is required. To register for the seminar that best fits your schedule, visit www.greenstonefcs.com/constructionseminar. 2024 Producer Prep Meetings In the world of farming, the adage holds true: fail to plan, plan to fail. Achieving success in agriculture requires deliberate effort and strategic planning, a truth that applies to every farmer. Recognizing the significance of meticulous preparation, GreenStone has announced the dates for our 2024 Producer Prep Meetings. GreenStone is working with industry experts to offer two educational meetings tailored to provide row crop farmers with essential resources for a successful 2024. Planning for a bountiful harvest often involves months of groundwork, and these meetings aim to empower farmers by sharing insights from industry experts committed to their success.
During each meeting, we’ll cover: • Industry and Market Outlook • Financial products for You • Transition and succession planning • Bookkeeping strategies for a strong start to the year • Effective risk management At GreenStone, we've conducted the research so you can devote your focus to steering your farm towards success. Each meeting is from 8:30 a.m. – 1:00 p.m. and includes a complimentary breakfast and lunch. Join us at one of two mid-Michigan locations: • Kent Co. – Tuesday, February 13 - StoneWater Country Club - 7177 Kalamazoo Ave SE - Caledonia, MI 49316 • Tuscola Co. – Thursday, February 15 - Beagio's Pizza - 5795 Sanilac Rd – Kingston, MI 48741 Producer Prep Meetings are free to attend but registration is required. To register for the seminar that best fits your schedule, visit www.greenstonefcs.com/producerprep
Dairy Market Outlook with Dr. Marin Bozic GreenStone is committed to providing you the right tools to make decisions on your operation, even in ever-changing markets. To provide you with crucial insight into the dairy markets, we are partnering with Dr. Marin Bozic, founder and CEO of Bozic LLC, a global provider of technology solutions for commodity markets analytics and designer of three major livestock insurance programs, including DRP. GreenStone is excited to sponsor two industry speaking sessions with Dr. Bozic: • Dairy Strong | January 16-18 in Green Bay, WI. - Session: Modernizing Milk Pricing in the US & Long-Term Trends in Dairy - January 17 from 2:30 – 3:30 p.m. • Great Lakes Regional Dairy Conference | February 8-9 in Mt. Pleasant, MI - Session: Dairy Market and Policy Outlook - February 8 from 1:30 – 2:30 p.m. Each session offers a Q&A with Dr. Marin Bozic and GreenStone’s DRP team of experts. To attend Dr. Bozic’s session, you must register for each conference separately. Learn more at www.GreenStoneFCS.com/dairyevents. ■
“
Thank you so much for sponsoring our Apples4Ed raffle in August. The 2023-24 Apples4Ed raffle program just opened up and your generous donation made it possible to support an additional school this time around! Thank you again for helping us reach our goal to support a great cause.
”
— US Apple Next GenFellows Class of 2023
“
I want to thank you for sponsoring the efforts of the Michigan Club Lamb Association in 2023 and generous support that you show for the youth that participate in the MCLA Youth Challenge each year. Your support and kindness does not go unnoticed!
”
— Mikaela Talbot
... Candid Comments
Partners — Winter 2024
26
Dale Wagner
Directors' Perspective :
Farm Credit Fly-In In November, a group of GreenStone board members and staff traveled to Washington, D.C. to represent GreenStone and our 28,000 members as part of the nationwide Farm Credit Fly-In. The time in D.C. was filled by conversations and interactions all centered around creating dialogue, providing education, and raising awareness with legislators and their staff. Three of your directors share their perspective of some of those opportunities from throughout their time in D.C., and offer their thoughts how each provided a unique and important opportunity to advocate for our members!
27
Winter 2024 — Partners
Over a hundred years ago Congress had the foresight to charter the Farm Credit System with a mission to provide safe and consistent credit and financial services to American farmers and ranchers. There has been enormous change since then, but our mission remains as important as ever. Today there is a tremendous amount of political "noise" so I feel it's necessary to be a part of the conversation. Farm Credit was in Washington, D.C. with farmers and ranchers from across the country and I was lucky enough to be a part of more than 800 participants. I had the opportunity to share some time with my senators and representatives or in many cases their congressional aides who have a significant impact on the information our lawmakers use when considering legislation. We had very candid conversation and discussion about many things affecting agriculture and rural America. Obviously much of the conversation was centered around the Farm Bill and the need to get it passed. Coincidently, while we were in D.C. the oneyear extension did pass, but the
message was still clearly conveyed for the importance of getting the five-year Farm Bill passed to give producers a better sense of security. Other topics included crop insurance, the ability to finance young, beginning, and small farmers, and their concerns over impacts of increasing land values and interest rates. We voiced our concern about overreaching regulation and how those additional costs have to be absorbed by our member owners. Another topic we approached centered around the need to help finance rural infrastructure, including housing, healthcare facilities, utilities, etc. and the ability to partner with community banks for the improvement of small towns. I have the realization that we were talking to politicians in Washington, D.C., yet somehow I feel our message was well received. I believe our attempts to educate and voice our concerns were, in some small way, successful! I think communication and building these relationships is vitally important to the strength of agriculture, our rural communities and our country, and am grateful to be a part of the GreenStone team advocating for and representing our members on the Hill!
Troy Sellen
Terri Hawbaker
in-depth conversations were had around legislative issues that impact the bigger picture fundamentals that hit home for all of us in some way.
Occasionally I find myself so wrapped up in micromanaging the details of our farming operation that I can control that I forget to consider the “big picture”. I suspect this can also be the case for the 600,000+ patrons Farm Credit serves nationally. Thankfully, opportunities like GreenStone’s Legislative Breakfast, which we held in D.C. in conjunction with the Farm Credit Fly-In, creates a chance for us to get one-onone time with some of our Michigan and Wisconsin Congressional delegates to facilitate discussions about these big picture issues. While Farm Credit has a strong presence on Capitol Hill, this event brought our representatives and their staff out of their highpaced offices and into a relaxed environment. With less concern for time and schedules, meaningful and
What I really appreciated about this event was the sincerity of the conversations. Whether it was talking about the need for a comprehensive Farm Bill or asking for support to allow Farm Credit to partner with rural communities in building vital infrastructure, these discussions took on a much more personable tone than the usual legislative office visits. I feel a huge amount of credit needs to be given to our staff at GreenStone for being creative and unique to other Farm Credit institutions by planning this event. Feedback from those who attended has been very positive with many inquiring as to whether there will be another breakfast during the next Fly-In. By leveraging the power in numbers of our patrons, you can be confident that GreenStone and Farm Credit are creating direct conduits to the Capitol by which our concerns and needs are being heard.
Possibly the most valuable follow up to our in-person meetings with our legislators was the Farm Credit Marketplace Reception held at the conclusion of the Fly-In. Using the theme and ambiance of a community farmers’ market, associations like GreenStone from around the country bring and share product from their region and their customers to be given to legislators and their staff as they “shop” as a representation of the broad and diverse industry we are a part of. While the in-person visits with legislators are vital to encouraging things like a Farm Bill that benefits our customers, the Marketplace Reception
brings our words to life as they shake hands with the growers, producers, and lenders that the Farm Bill will directly impact. The participants get to use, taste and enjoy both food and nonfood items from all regions of Farm Credit customers. We all too often read of and discuss the current disconnect between consumers and farmers or ranchers -the Marketplace Reception helps bridge that gap with the very people who will decide how our customers will be impacted with upcoming legislation. For many of them, it might be the first time they meet an actual farmer. Even greater than that, it just might alter their buying decisions as they join family over the holidays or host winter gatherings. Andy Hertzfeld is quoted saying, “You show me a great program and I’ll show you a passionate individual somewhere behind it.” While it’s certainly more than one person behind the success of the Farm Credit Fly-In and Marketplace Reception, the passion for American agriculture was hard to hide! ■
Partners — Winter 2024
28
them, and if we don’t show up in some way, they will decide things without us. Government leaders must come to value connecting our country’s agriculture to family farm ownership, all elements of science and geography as they make policies and programs. We need to use these winter months for all the above, and not forget about how important our voices are to assist our leaders in learning to know what they don’t know. These legislative and program decisions will shape the sustainability of our farms and how people are fed for generations to come.
Legislative Matters:
WHAT TO DO IN THE WINTER– PLENTY TO GET PLENTY Planting and harvest seasons receive a lot of attention and deservedly so. The execution of placing seeds in the soil with all the necessary support, care and feed to bring forth a productive result makes all the difference when measuring the success of a harvest. The intensity, timing, rigor and efficiency of a harvest which grows out of the planting season makes all the difference for success. But maybe even more important than those two seasons is how we prepare for those seasons in the winter. In the mix of our preparation is learning and understanding what legislation is being fomented to change everything. Key to winter activities mixed with holiday celebrations, industry meetings and taking a bit of a deep breath with thankfulness and recognition of blessings to be able to go another year, are other important thoughtful actions. Mindfulness 29
Winter 2024 — Partners
of legislation being developed by actors that do not have the necessary deep understanding of farming and science our farmers have, can cast a shadow on the blessings and lead to yet another reason for prayer. Reviewing and assessing your farms operation finances includes strategizing how they will be used to meet next year's goals. Whether it is tax evaluation, cash flow, budgeting, prebuying inputs and other expenses, a sharp mind and pencil are important. Examining market prices, demand and trends to make projections involves wise reflection and minimizing guessing. All this reviewing,
analysis and assessment must be made with an understanding of the public policy and programs. This can be complex. It is certainly worthy of reflective time. Following that reflective time, turning a wrench on equipment maintenance to assure being “ready to roll” is likely to bring a smile after thinking about the politics of anything. So as we get to that mechanical work or enhancing winter preparations for animal safety during the cold season, keep in mind that a visit with legislators might make a difference in educating someone who took a different role in life – legislate. They need us to assist
Key on the legislative agenda is the next Farm Bill. It seems the journey never ends on making the Bill and it must be made in a manner that will allow for the continuation of diversified farm operations based on science and respective geographies. Congress passed an extension of the 2018 Farm Bill in November 2023. This keeps the current Farm Bill in place through September 2024. While this bill averts a government shut down for the time being, it was an important vehicle to fund some farm programs that would have lost funding on January 1, 2024. This extension makes it essential to have lively conversations about the necessary mechanics of this next Farm Bill in the first half of 2024 so our farms can produce plenty in the future. We cannot have success and prosperity in our planting and harvest without these important winter exercises. As preparations are made to plant and harvest, appreciation for the other parts of farming need to be embraced to include communication with legislative leaders. ■
PAC Progress:
GREENSTONE’S VOICE
for rural communities and agriculture is building relationships for your success! Your MI GreenStone PAC and WI Farm Credit PAC had a successful 2023. Disbursements were completed with meetings and checks being delivered to both Senate, House of Representatives, and Assembly legislators! The meetings were productive as connections were made and the cooperative structure of our borrower-owned lending association was communicated. At the Federal level, the legislative activities have been very dynamic from agricultural labor, to FSA loan program limits, to the Farm Bill. The Farm Credit System, through individual associations and the Farm Credit Council, has been able to provide prospective as called upon. None of this would be possible without your engagement and commitment to raise legislative awareness of rural communities, agriculture, GreenStone, and the Farm Credit System. GreenStone was also privileged to host a retirement celebration for Senator Debbie Stabenow who is retiring at the end of her current term in 2024. The Farm Credit PAC contributions over the years allowed us to financially support her as she worked tirelessly for the agriculture industry. The celebration was time for GreenStone to say thank you and join with other agricultural organizations to recognize her lifetime of service. In her honor the organizations made contributions to Michigan 4-H and Michigan FFA that she has long been an advocate of for as they help train the next generation that with join the agriculture industry.
GreenStone looks forward to continuing to build relationships and strengthen the recognition of our members, communities, and industry. The overall value and role of rural communities and the agriculture industry to our economies, and Farm Credit’s vital role in that, will continue to be the focus. Your continued support is commended and we look forward to involving members in delivering these messages! ■
The MI GreenStone PAC and WI Farm Credit PAC
Michigan
Drives are going on now! Be involved in supporting the future of rural communities and agriculture. Send your voluntary Patronage pledge before Jan. 31 to direct dollars from your Patronage check
Wisconsin
to the PAC. Join hundreds of your fellow members in strengthening the recognition of agriculture as a key component to a thriving economy.
Partners — Winter 2024
30
LIVE
From the Suburbs to Serenity Country Living Customer Feature
After a cold and snowy December morning of deer hunting, Daniel Krug joins his wife Jennifer to enjoy a cup of coffee by the warmth of their fireplace in their newly-built barndominium-style home. It’s the kind of peace and quiet you can only get on the backroads of Holly, Michigan. Although originally hesitant to move to such a large plot of land, coming from living in the suburbs, Jennifer now appreciates this newfound serenity. “It was during COVID and the lockdowns when we decided we didn’t want to be in the suburban areas anymore,” Jennifer explained. “I wanted to downsize our home now that we are empty nesters, but I knew Dan’s dream was 40 acres.” That 40-acre dream turned into a 65-acre reality after Daniel and Jennifer toured the plot of land they now call home. “When I first heard 65 acres, I was wondering who needed that much. Now, I realize I like it. There’s nice trails to walk through the woods. I feel like I’ve visited all corners of the properties,” said Jennifer. The two worked with GreenStone Financial Services Officer Miranda Kelle to secure a land loan and buy the property. Soon after, they called up Miranda again to finance a home construction. “Everybody was awesome at GreenStone. We were happy to work with a local lender who understands exactly what we want,” said Jennifer. “Our builders loved working with GreenStone, too. It was a natural choice to go with GreenStone.” “With it being a unique type of build and the size of the property, we knew it was up our alley to finance it,” explained Miranda. By August 2022, their two builders broke ground on the home while Daniel and Jennifer lived in a temporary building on the property they refer to as the “glamping tent.” After a cozy full year in the small structure, Daniel and Jennifer, along with their two dogs Ziva and Ellie, were finally able to move into their new, state-of-the-art barndominium – even 31
Winter 2024 — Partners
➡ Daniel and Jennifer enjoy the ambience of their fireplace months after moving into their new home.
hosting a large Thanksgiving for family this past November. “Daniel told me that Thanksgiving in the new house was amazing,” said Miranda. “That meant a lot to me because it’s a great example of the meaning of our job. We get to help make those big moments happen.” “It’s nice to have the kids and grandkids here,” Daniel explained. “Everyone felt at home by the end of the day Thanksgiving.” It’s difficult not to feel a sense of home in their cozy rural setting. The home is equipped with a large kitchen, 2540-square-foot garage, and plenty of living space for their seven grandchildren to enjoy. “I like the open design and the big fireplace,” Daniel pointed out. “The vaulted ceiling and the beams in the ceiling were things I always wanted,” Jennifer reflected. “The big island and large pantry are also very cool for me.”
There are even some personal touches that remind Daniel and Jennifer of friendships they have developed along the way. “We had a friend that had a milking barn that unfortunately was flattened in a storm,” Daniel said. “We bought the wood and used it for a beam in the kitchen, the fireplace mantle and two vanities.” Daniel and Jennifer say it didn’t take long to adjust to the lifestyle change from the city to the country. “I used to have a suit and a BMW, and now I have a cowboy hat and a truck,” Daniel joked. “I would just tell anyone that if they are looking for a switch in lifestyle, it’s a lot of work but it’s very rewarding,” said Jennifer. The home build may be complete, but they are just getting started on this property. Next on their agenda: raise some horses. “We have an equestrian barn to put together,” said Daniel.
If anyone knows how to take a big idea and turn it into reality, it’s certainly Daniel and Jennifer, and the team at GreenStone will be there every step of the way. “It’s exciting to see what else they can do, especially with this size of property,” said Miranda. “We keep the relationship open and wherever their ideas go, we know we are a resource for them.” In the meantime, they will continue enjoying fresh coffee, the fireside ambiance, and the endless possibilities of this new home and lifestyle. “One of my favorite parts of the job is being able to see people’s dreams come to life and being able to help them do that,” said Miranda. “This isn’t just about financials, it’s about getting people in their dream home.” “I do believe that God led us here, and I know God is going to continue to provide as long as we follow Him,” said Jennifer. ■
Partners — Winter 2024
32
Deer Camp By: Jimmy Gretzinger Producer, Michigan Out of Doors TV Deer camp. Those are two words that can lite a fire in many Michigan hunters of a certain age. What age you may ask? Good question. I have given that quite a bit of thought over the last several years. My dad, who is now 80, is still drawn by the allure of deer camp. The sad fact is, physically he can’t navigate getting to and from deer camp on his own any longer. A stroke robbed him of that gift several years ago, but the spark and the memories still smolder. The question is, are the traditions of deer hunting being passed down? Is deer camp still a thing? Well, the answer is a resounding yes…and no. I have the extreme honor of having the job as host of Michigan Out of Doors TV. That little camera
has given me a pass into many deer camps around our great state over my 26 years of working for the show. I have been to many a cabin, tent, house, camper, home and hotel all doing their part to host a deer camp. At every camp, it seems like there’s a couple of different age classes of hunters, starting with the old guard. By that I mean, folks in their 60s, 70s, and 80s. They tell the best stories, and if you’re lucky enough to go back year after year, the stories usually get better and better over time. These guys
still like to hunt, but aren’t too concerned about filling a tag. They’re still the first ones up, but not usually the first ones out the door. Then there’s the guys in there 30s, 40s, and 50s. Some are still pretty hard core, hunt hard, and are very into all that goes into the hunt. They run a ton of trail cams, have full scent control, and can name all the bucks on their property. However, many in this age range have started to transition to a bit more of a casual hunter. They only sit until 10 or so, don’t scout
much, don’t know what grain bullet they shoot, and they are more into what the dinner plan is then who is sitting in what blind. Then we have the up-and-coming hunters, the young ones. It’s these that I am worried about, and I have two of them in my own house. For some of them, they have gotten bit by the hunting bug and can’t wait to hit the woods! They love the allure of the outdoors. They love hunting deer, ducks, big bass, or whatever else they can chase! These young hunters will hopefully take our sport into the future. There are also many, like my two boys, who each shot a few deer and really like it but haven’t fallen in love with it yet. They will always support it, will go from time to time, but haven’t yet made it a priority in their lives. Deer camp is the place that all of these folks can and should come together. The teenager, the hardcore 30 year old, the casual hunting 45 year old, and the 70 year old story teller. If our sport is to grow, and thrive, I believe that keeping deer camps part of the hunting landscape is crucial. The memories, the stories, and the deer on the pole are all an important part of making the tradition of deer hunting continue. The world would be a better place if we all went to deer camp. ■
33
Winter 2024 — Partners
WINTER FAMILY FUN As the holiday season winds down it is important to keep spending time with family. Here are five ways to make your cozy nights with your family more exciting this winter! 1. Game night
5. Talent Show
Pull out your favorite game from when you were a kid and teach your children how to play! Whether it is Twister or Euchre, family game night is a great way to laugh and have fun with the family!
Turn your living room into a stage for your family talent show! Show off your dance moves or sing your favorite song to your kids and encourage them to express their talents.
2. Pizza night Clear off the table or the countertop and roll out the dough – make it from scratch and watch it rise, or take the easy route and buy it from the grocery store. Have everyone decorate their own pizza with whatever toppings they like.
Time together trying new and old things provide memories for a lifetime. Make the most of the season and enjoy those around you!
3. Movie night Blow up the old air mattress, and grab the blankets and popcorn for family movie night. Pick out your favorite movie and relax as a family together watching it! 4. Build a Snowman Bring Olaf to life this winter while building a snowman! Don’t forget the carrot nose and hat, or get creative with your accessories! Cap off the fun by making some hot chocolate to complete the full snow experience.
i
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: Want to score keys to a new home? Start goal setting now! Have a goal to buy or build a home? Use the new year to work toward that goal!
Country Minute: Tips for First Time Home Buyers
Country Minute: Benefits of home ownership
Ready to buy a home? Get started by considering these five things.
There are many factors to consider before going on the hunt for the perfect home. ■
Partners — Winter 2024
34
REACHING OUR FINANCIAL GOALS IN 2024 Now that the holiday season is over, and we may have splurged a bit on new holiday decorations and gifts, it is time to set our budgets back on track to reach 2024’s financial goals! Here are some tips to help.
35
Create a Goal
Review your Subscriptions
What is your financial goal in 2024? Are you looking to save up money for a house? A wedding? Or a vacation? Align your goal with your values, and clearly define what would you like to save up for this year.
Remember that subscription to Jelly of the Month club you thought you were going to use, but forgot about? Maybe it time to review it and decide if it is worth keeping.
Create a Budget
Limit Credit Card Use
Take time to sit down and review last month’s income and expenses. Create a list of wants and needs – that might mean considering that it might be cheaper to make coffee at home instead of buying it at a coffee shop and you may need to adjust your “want” purchases to accomplish your goal. While you are creating your budget, remember to set aside some extra money for any unexpected expenses, like car repairs or the furnace going out.
Credit card debt can be pretty easy to get wrapped up in. You’re budget should help you to only spend as much as you can payoff each month, and pay on time. If you can pay it off a couple days before the due date to avoid risking a late payment fee, that is even better!
Winter 2024 — Partners
Hold Yourself Accountable Set a reminder at the end of each month to check your spending habits! Financial planning can be hard sometimes and takes time to adjust habits, so don’t get down on yourself if you didn’t save as much as you planned. Don’t give up; review and adjust, and keep working toward your goal! ■
Commodity Cuisine... Maple Dijon Salad Dressing
Instructions:
Looking for a way to sweeten up your New Year's Resolution? Just add maple syrup! It adds an allnatural, unrefined sweetness that you just can't get with regular table sugar, and it can be used for more than just pancakes! Here is a way to include this sugar alternative in your salad dressing to make the perfect balance of sweet, savory, and tangy all at the same time.
1. Whisk together maple syrup, Dijon mustard, minced garlic, apple cider vinegar, olive oil, salt and black pepper in a small bowl or in a mason jar. 2. Taste for seasoning and add in more if necessary. 3. Before serving, give it a whisk (or a vigorous shake).
Prep time: 5 minutes • 2 tablespoons maple syrup • 1 tablespoon Dijon mustard • 1 clove of garlic minced • 2 tablespoons apple cider vinegar or red wine vinegar • ¼ cup olive oil • ½ teaspoon kosher salt • ¼ teaspoon black pepper
Notes: • This recipe makes a little less than 1/2 cup maple Dijon salad dressing. • Store it in a jar with a tight-fitting lid in the fridge for up to a week. • Use it in green leafy salads, grain bowls, and more. • Make into a Mape Dijon Sauce: Double the amount of maple syrup and Dijon mustard and use half the amount of olive oil with the rest of the ingredients being the same. Recipe from Doodle's Sugarbush, LLC (read more about their maple syrup story on page 11). ■
Partners — Winter 2024
36
LEARN
CROP INSURANCE NEWS: PREMIUM ACCOUNTING & BILLING UPDATE For 2023, interest was deferred on premium due on October 1 until December 1, 2023. This is a temporary extension granted by the Risk Management Agency. After that time, 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 15 Debt Termination Date, contact the AIP directly to set up a payment plan. Otherwise, you will not be eligible for crop insurance or any other federally subsidized programs. ■
NEW MULTI PERIL POLICY OPTIONS The past few years as seen many new options offered that can be added to your multi-peril policy. Supplemental Coverage Option (SCO) and Enhanced Coverage Option (ECO) can be added to your policy to increase your total coverage levels and acre income guarantees, sometimes at a premium cost that is less than buying up your regular policy coverage level. Your crop insurance specialist has the tools to show you what options are available and the best options to maximize your coverage at a cost that fits your budget. Give them a call to set up an appointment. ■
37
Winter 2024 — Partners
PERSON TYPES & IDENTIFICATION NUMBERS To better accommodate data reconciliation between the Farm Service Agency & Risk Management Agency, 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 15 deadline. ■
Crop Insurance Calendar... JANUARY Fruit Acreage Reports / Yield
15 Reports & Pre-Acceptance Worksheets Due
MARCH Final date to sign up or make
15 changes for a Spring 2024
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)
MULTI-COUNTY ENTERPRISE UNITS (MCEU) 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. ■ EARLY / LATE PLANT DATES Early and late plant dates may have changed and vary by location within the state. Be sure to contact your crop insurance specialist to get the specific dates for your area. It is important to note that crop acreage
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. All changes need to be completed by the March 15 deadline! If a signed application is not returned, your policy will automatically renew at the same level you insured at during the previous year.
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 using your contract price to set your crop insurance guarantee, ask your crop insurance specialist about the new contract price addendum. ■
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 if producers follow good farming practices. Crops planted after the late plant date during the late plant period will also have reduced coverage. ■ 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 Specialist. ■ DRY BEAN PREVENTED PLANTING COVERAGE LEVEL CHANGES Prevented Planting (PP) Coverage levels for dry beans has been reduced from 60% coverage down to 50%. Prevented planting 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. ■ ORGANIC CROPS
APRIL Production reporting deadline
29 for Fall 2023 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 29.
* Please note that some dates can vary by county, especially in Wisconsin. Please check with your Specialist for specific dates if you are unsure.
As a reminder, the USDA Risk Management Agency now requires all insured organic certified producers to provide a copy of their organic crop plan and organic certificate to their agent before the acreage reporting date. ■ Partners — Winter 2024
38
Does The Corporate Transparency Act Impact Me? By: Chad Zagar, GreenStone VP and Managing Director of Tax and Accounting
As you prepare for the new year ahead, there’s a new reporting requirement that could impact you – the Corporate Transparency Act (CTA)!
What is the CTA? The CTA is an anti-money laundering law passed by Congress in 2021. The CTA requires defined businesses to report what’s called Beneficial Ownership Information (BOI). The new BOI reporting requirements aim to provide the government with resources to crack down on shell companies used by money launderers, criminals and others trying to illegally hide assets. It’s estimated that over 30 million business entities will be required to report BOI – including many types of farm businesses. Failure to comply with the reporting requirements can lead to civil and criminal penalties! The Financial Crimes Enforcement Network (FinCEN), the agency enforcing the CTA, is taking this very seriously. A failure to report could result in up to $500 a day in civil penalties until corrected. Additionally, criminal penalties of up to two years imprisonment and $10,000 could result. These penalties apply to fraudulent reporting as well, for example providing a fraudulent ID for a beneficial owner. Am I required to report my business’s BOI? Most companies that are business entities will need to report. The rule is that any business entity “… created by the filing of a document with a Secretary of State or any similar office in the United States” must report. Businesses that need to comply with BOI include, but not limited to: • Limited Liability Companies, including single member LLCs • S corporations • C corporations • Cooperatives • Associations • Limited Partnerships • Certain trusts If you are questioning whether or not you need to report, you should lean towards reporting. If an individual owns or controls 25% or more of a reporting company, they should file. Who doesn’t have to report their business’s BOI? Sole proprietors and husband/wife proprietor businesses will not need to report. This is because proprietorship businesses are not separate entities from their owners, so no filing is necessary to create them. Other exceptions from reporting include: • Heavily regulated companies (banks, credit unions, public utilities) • 501(c)3 tax-exempt entities under the Internal Revenue Code • Large companies that have: – More than 20 full-time employees that are employed in the United States AND – More than $5,000,000 in gross receipts or sales from sources within the United States on its previous-year’s tax return For more details on reporting and a complete list of exceptions, see the Small Entity Compliance Guide (Beneficial Ownership Information Reporting | FinCEN.gov) and the FAQ’s (Beneficial Ownership Information Reporting | FinCEN.gov) on the FinCEN’s website. What is a beneficial owner? A beneficial owner is an individual who either 1) has substantial control over a company or 2) owns 25% or more of the ownership interests of the company. Substantial control can be direct, including senior officers and any individual with the ability to appoint or remove a senior
39
Winter 2024 — Partners
officer. However, substantial control can also be indirect. Someone will be considered a beneficial owner if they are an important decision maker for the company. The regulations seek to identify the people having control and influence over decisions, regardless of whether or not those people have their names on the shareholder list. When do we need to file and where will filing occur? Filing will be done online via FinCEN’s website. There will be no fee. As of the writing of this article, the form is still under development. Information about the form will eventually be posted on the FinCEN website (Beneficial Ownership Information Reporting | FinCEN.gov). For businesses in existence as of December 31, 2023, the BOI filing can be made starting January 1, 2024. The deadline to file is by January 1, 2025. This gives current companies one full year to make their initial BOI filing. Companies that are created on or after
January 1, 2024 must file within 90 days of receiving notice that they are registered. The AICPA and over 50 affiliated organizations recommended in a letter to the Treasury’s FinCEN that the agency extend the effective date for reporting by one year to help smooth out the filing process as it gets underway. On December 12, 2023, the House of Representatives passed a bill that would approve these items – the bill is now in front of the Senate awaiting further Congressional consideration. Important to note is that after the initial BOI report is made, any changes to beneficial ownership information need to be filed within 30 days after the date of the change. Changes that need to be reported include appointing a new CEO, or someone acquiring more than 25% of the company through a sale or gift. What information will I need to report? The information that will need to be reported is: • The company’s legal name any trade names (“doing business as” and “assumed.03s
• An identifying number from an accepted ID document (passport, U.S. driver’s license), name of the issuing state or jurisdiction, and an image of the ID document Companies that are registered on or after January 1, 2024, will additionally need to supply information about the company applicants. Company applicants are individuals who directly filed the document to register the company (often attorneys) and the individual primarily responsible for directing the filing. Closing: The CTA’s reporting requirements will impact many companies and will likely require a significant amount of information gathering and analysis. We recommend that you consult with your legal counsel to determine your reporting obligations. GreenStone’s tax and accounting team at your local branch is also available to answer questions. GreenStone offers a full array of accounting services for farmers and other business owners, and we are ready to assist you with your year-end reporting needs! ■
Tax Calendar... JANUARY
16
Individuals make a payment of your estimated tax for 2023 if you didn't pay your income tax for the year through withholding (or didn't pay in enough tax that way) via Form 1040-ES. Farmers and fishermen pay your estimated tax for 2023 using Form 1040-ES. If you pay your tax in full, you have until April 15 to file your 2023 income tax return. If you don't pay your estimated tax by January 16, you must file your 2023 return and pay any tax due by March 1, 2024, to avoid an estimated tax penalty.
MARCH
1
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. S Corporations file a 2023 calendar year income tax return (Form
15 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 2023 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.
Form 1099 due to recipients of certain payments
31 made during 2023 for interest, rent, contract
labor, veterinarian services, etc., including the new 1099-NEC Form. Provide employees copy of Form W-2 for 2023. Farm employers file Form 943 to report social security and Medicare wages, and withholdings. Non-farm employers file form 941 for the 4th quarter to report social security and Medicare wages, and withholdings. Employers file form 940 for federal unemployment tax.
Payers must file Forms 1099 and 1096 (other than 1099-NEC, which is due January 1) with the IRS. If these forms are e-filed, the deadline is extended to April 1.
APRIL Individuals file a 2023 income tax return (Form 1040) and pay any
15 tax due. If not able to file, file Form 4868 to request an automatic
six-month extension. Any tax due must be paid with the extension. First quarter estimate is due for 2024 for individuals paying estimated taxes. C Corporations file a 2023 calendar year tax return (Form 1120) and pay any tax due. If not able to file, file Form 7004 to request an automatic six-month extension. Any tax due must be paid with the extension. C Corporations deposit the first installment of estimated income tax for 2024.
Partners — Winter 2024
40
i Tech Tip: A Year in Cybersecurity Review & Tips for 2024 By: Matthew Cosgrove GreenStone VP of Information Security
Based on a recent study conducted by IBM, the “average cost of a data breach for an organization exceeded $4.45 million in 2023, the highest average on record, this is an increase of 2.3% from 2023”.
41
Winter 2024 — Partners
While significant advancements were made in security technologies like Artificial Intelligence (AI), malicious actors remained a persistent threat, constantly adapting their tactics and exploiting newly discovered vulnerabilities. This piece explores some of the more significant cybersecurity events of 2023 and provides practical tips to help you strengthen your cybersecurity posture in 2024. AI Revolutionizes Threat Detection:
AI systems such as Google Bard and ChatGPT have achieved remarkable advancements in functionality. While these technologies offer immense potential for good, they are also accessible to malicious actors. Thankfully, AI has also revolutionized threat detection, enabling organizations to analyze vast amounts of data in realtime and identify malicious patterns that might elude traditional methods.
These AI-driven algorithms can detect anomalies and predict potential attacks before they occur, allowing for faster and more effective response. Enhanced Collaboration: Building a Collective Defense
Collaboration and information sharing are crucial components in countering cyber threats. Organizations are increasingly participating in the exchange of threat intelligence, which allows for the swift identification and neutralization of threats. By learning from each other's experiences and sharing knowledge, organizations can develop a stronger collective defense against cyberattacks. The White House's National Cybersecurity Strategy (The White House, 2023) and CISA's "Shields Up" campaign (Cybersecurity & Infrastructure Security Agency , n.d.) reinforce this approach by advocating for coordinated efforts and resource sharing to enhance cybersecurity
resilience across various sectors. These initiatives underscore the importance of a unified and proactive stance in addressing the evolving challenges within the cyber landscape. Evolving Cyber Attacks and Breaches
Advanced detection technologies and awareness campaigns are crucial to combat this emerging threat. These varied incidents and technological advancements illustrate the escalating scale and sophistication of cyber threats. The year 2023 saw nearly 6 billion compromised records (Ford, 2023), emphasizing the urgent need for robust, proactive cybersecurity strategies on a global scale.
2023 was marked by a series of highprofile incidents around the world, demonstrating the ever-evolving nature of cyber threats, including the sophisticated rise of deepfakes. Here’s a highlight some Protecting Yourself in 2024 of the more notable cyber events that took While the cyber threat landscape may seem place in 2023: daunting, individuals need to continue •T he year began with Royal Mail, a major to take proactive steps to enhance their British postal and courier company, cybersecurity posture. experienced a major operational disruption due to a ransomware attack by LockBit, a ransomware gang linked with ties to Russia (Cyber Management Alliance, 2023). The attack halted international shipping and raised alarms about the readiness against such threats. • Then in June, a software vulnerability in a popular file transfer product MOVEit was exploited by the ransomware gang CloP to attack hundreds of organizations, including universities, banks, and major multinational corporations (Vasquez & Vicens, 2023). • In July, Storm-0058’s a Chinese state-linked hacking group, breached Microsoft's email platform that led to the extraction of tens of thousands of emails from U.S. State Department accounts, primarily involving personnel working on Indo-Pacific diplomacy (Pearson, 223). • Then in October, identity and authentication giant Okta suffered a breach in its customer support department, with hackers gaining access to the customer support case management system and stealing sensitive data. This breach was first reported to only have affected 1% of their customers but later revised that it impacted all of there customer (Krebs, 2023). Deepfakes: The Rise of a New Threat
2023 also saw a significant sophistication of deepfakes, synthetic media created using artificial intelligence. These advancements have raised concerns about potential abuse in various digital spaces, including phishing attacks, disinformation campaigns and social engineering. Deepfakes pose a significant challenge due to their ability to convincingly mimic real people, making it difficult for individuals and organizations to discern genuine content from malicious attempts.
Here are some key actions you can implement:
• Embrace strong passwords: Move beyond easily guessable passwords. Utilize strong, unique passwords for all your accounts and enable multi-factor authentication wherever possible. Consider using a password manager for enhanced password management. • Beware of phishing scams: Be cautious of suspicious emails, links, and attachments. Always verify the sender's identity before clicking on any links or downloading attachments. If something seems too good to be true, it probably is. Check the “red flag” list for actions that should cause you to stop and verify. • Update regularly: Regularly update the operating systems, applications, and firmware on all your devices (smartphones, tablets, computers) to install the latest security patches. • Backup is key: Regularly back up your important data to a secure location. This will provide a safety net in case of a cyberattack or accidental data loss. • Secure your home network: Use strong passwords for your Wi-Fi network and enable encryption to protect your data while online. Avoid using public Wi-Fi for sensitive activities. Looking Ahead: A Collaborative Future
Combating cyber threats effectively requires a collaborative effort. Individuals, organizations, and policymakers must continue to work together to create a more secure digital environment. By taking these steps and staying vigilant, you can navigate the ever-evolving threat landscape with confidence! ■
Be Alert! Watch for these red flags and always verify before you send...
Change in payment Ö information, such as changes to wire directions, check details, or ACH directions Urgency in the request or Ö last-minute changes without notice Change in your point person Ö for business in process, such as your loan officer, title agency contact, or dealer representative Change in payment type, such Ö as requiring you to wire money instead of provide a check Requests for payments for Ö unexpected things, or by someone who wouldn’t normally contact you for money Unexpected email, text or Ö phone call, or communications where the contact information doesn’t match what you normally use for that individual, such as a different email address or phone number
Partners — Winter 2024
42
3515 West Road East Lansing, MI 48823
Winter feature highlight... Daniel Krug and his wife Jennifer are enjoying their newly-built barndominium-style home in Holly Michigan. Read more on page 31.