Spring 2019
GreenStone FCS
Promoting the business success of our customers and the rural community
NEW
GROWTH Stoll pg. 5
+S pring 2019
Market Outlook
+G reenhouse Growing Solutions + Dairy Revenue Protection
SPRING 19 5 YBSF Feature. Finding a young, first generation farm family starting out on their own may seem rare, yet an encouraging prospect for the future of agriculture. For Alvin and Mary Kay Stoll, they believe it is an honor to participate in the rewards and challenges farming brings as part of God’s current plan for their life.
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23 GreenStone Story. While serving local
35 Crop Insurance. The recent launch
communities and providing relationshipbased service, we are also a part of a much larger organization through the national Farm Credit System.
of the Dairy Revenue Protection (DRP) program is giving dairy farmers new opportunities to provide a safety net for their operations.
41 Accounting Feature. Assembling 29 Country Living Feature. Marc and Sharon Gemellaro recently built their once-in-a-lifetime dream home on 70 acres in northern Oakland County.
a financial team may help to more aggressively manage your farm’s finances.
3 CEO Comments. President and CEO, Dave Armstrong, shares thoughts on 2019 patronage distribution and the resilience of GreenStone members.
31 Spring Gardening. Whether you are an experienced gardener or this spring will be the first year getting your hands dirty, it is important to keep these tips in mind when you start.
9 Market Outlook. The optimism farmers exhibited to start the year has begun to erode, according to the Purdue University/CME Group Ag Economy Barometer.
32 Health and Wellness. Spring is a season of growth and change. It can also be a time for you to change your habits and routines.
12 Guest Column. With each tractor or combine pass, pig squeal and kernel placed in the soil, Brian Washburn is thankful for the life he’s created on the farm.
8 Blog Brief
17 Member News 18 Calendar of Events
13 Guest Column. Defining WOTUS is critical to the potential applications of specific environmental regulations.
19 Circle of Excellence
15 Member Feature. Since the mid-1950s, Eckert Greenhouse in Sterling Heights, Michigan has supplied the Detroit area with a wide variety of flowers and plants.
21 Behind the Scenes
25 Legislative Matters. It can take a long time to be heard, and even when voices get loud it can take time for action to follow.
26 PAC Progress. Thanks to the extraordinary support of members, directors, and employees, we are well positioned to stand for agriculture and Farm Credit.
27 Directors’ Perspective. Through 2018’s director elections, we welcomed two new teammates to GreenStone’s Board of Directors.
20 Pause for Applause 20 Candid Comments
22 Member Voting
Publisher’s Note: I thoroughly embrace a good motivational speaker, powerful book, or inspiring podcast. But I didn’t need any of that last month – my days at GreenStone provided me all the inspiration I could ask for in March. I started the month at the Michigan FFA State Convention – and WOW. Now this wasn’t my first time in the Wharton Center on MSU’s campus, surrounded by blue corduroy, but it doesn’t matter how many years I go back, my admiration of the youth leaders, the ideas of opportunities and the goosebumps of the opening ceremonies never cease. And amidst it all, the awe in the realization that I work with a company that aligns with my passion, and more importantly, the passions of our members. Fast forward a week, and this time it was my fellow coworkers and those members providing the adrenalin high. On Patronage Day, I joined a few of our branches and was reminded what makes our association so special. Time and time again, I watched a customer walk in the door, and be greeted by not one, but multiple branch staff. Anyone who is a customer knows, it’s not just a friendly smile, it’s a first name recognition, a knowing engagement to seek an update on the family, and a shared responsibility in the farm specifics. Again, this is by no means the first time I’ve experienced this, but there’s no way I could go through that day, or any day, and not acknowledge the impact it has on my daily actions. It makes me proud; and gives me the drive to always do more, be better, for my coworkers and our members. And I’m humbled knowing I share that aspiration with our nearly 600 teammates.
32 Blog Brief
I hope you’ll find your own inspiration in what you read in this issue of Partners, because, it starts with you!
33 Commodity Cuisine... Sweet Maple Barbecue Chicken Kabobs
– Melissa
34 Tech Tip
This newsletter is published quarterly for the customers of GreenStone Farm Credit Services.
37 Crop Insurance News 39 Crop Insurance Calendar 40 Careers 42 Tax Calendar
Editorial Laura Moser Melissa Rogers
Art & Design William Eva Annah Horak
Partners GreenStone Farm Credit Services 3515 West Road East Lansing, MI 48823 800-444-3276 marketing@greenstonefcs.com
CEO Comments:
Stepping Into Spring CAN YOU BELIEVE IT? ANOTHER PLANTING SEASON IS ABOUT TO BE IN FULL SWING. IT HAD JUST RECENTLY SEEMED SO FAR AWAY GIVEN THE BRUTAL WEATHER CONDITIONS MUCH OF MICHIGAN AND WISCONSIN ENDURED AS WINTER EXTENDED ITS ICY GRIP THROUGH MID-MARCH. AS SPRING KICKS IN, WARMER TEMPERATURES AND LONGER DAYS WILL ONCE AGAIN RENEW THE OPTIMISM OF THE POSSIBILITIES A NEW YEAR WILL BRING. By now, all members have received their patronage check for their business with GreenStone in 2018. Many members I have spoken with said they immediately noticed the increase in their check amount, and had no shortage of places to use the extra cash! Like the speed of time, it is also hard to believe that GreenStone’s patronage program has been going strong for 14 years, reaching a total of $400 million returned to its members since its inception. The program started out by paying around 20 percent of net earnings in the early years, increasing to 25 percent from 2014 through 2016, rising again in 2017 to 33 percent and reaching nearly 50 percent in 2018. When the program started, members valued GreenStone (and its predecessor organizations) as a dedicated lender to agriculture and rural communities that was a dependable, competitive, and responsible source of credit and financial services in good times and challenging times. Our people, the interest rates, and our understanding of their business were the key reasons they chose GreenStone over its competitors for their financial needs.
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Today, these continue to be the same basic reasons our members choose GreenStone. As an important and a significant benefit of membership, some may compare patronage to the “icing” on the cake that was “baked” long ago to serve farmers and other eligible members in rural America. If you’ve read my comments before, or have spoken with any of our teammates here at GreenStone, you know we thank our members for your efforts – both in the field and behind the balance sheets. Patronage Day is an opportunity to bring attention to your accomplishments, and to thank you for placing your trust in us every day. It is also a time to show our appreciation for your continued hard work, dedication and commitment that leads to your cooperative’s financial strength. Without your strong value system, record financial performance and patronage payments would not be possible. As we work with our members through the extended downturn in the agricultural commodity markets, we remain impressed with the tenacity, determination and resilience our members continually express through challenging times. Because we are focused on the success of our members, we work proactively with individuals to provide the right solutions for them. In a challenging farm economy, it is essential that we remain financially strong in order to provide flexibility and individual solutions to our members. As we look at agriculture in our territory today, it is devastating for any farmer to be part of the statistics feeding media headlines. One bankruptcy is one too many. Nationally, the numbers show a slight uptick in Chapter 12 bankruptcies (designed for small and mid-sized
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farm operations in the 1980’s) as a result of nearly five years of negative margins. Locally, 2018 brought the opposite trend with fewer filings than 2017. That said, the numbers – both nationally and locally – are comparatively low for the circumstances. While the markets present a significant share of financial stress, we have witnessed our members’ commitment to honor their obligations, and we too are committed to working with them. We work proactively with all members; being financially strong allows us to offer individualized solutions for their unique situations. And the return of nearly 50 percent of our net income through patronage is one more way we team with our members for a longer, positive future. Current forecasts for net farm income in 2019 remain dampened by the markets and uncertainty created by recent trade disputes. But the future of farming is bright and full of opportunity. Our GreenStone members will once again “lace up their boots” and produce another crop that will be the most affordable, healthy, and dependable source of food the world has ever known. Our country and the entire world is blessed to have the American farmer who has, and will continue, to persevere in spite of current challenges. Thank you for what you do!
I encourage you to set aside a little time to pause, acknowledge your accomplishments, and take in all the information this issue of Partners has to offer. We are excited to bring you stories about your fellow members, new crop insurance and risk management tools, cooperative reminders, our full line of farm business accounting and tax preparation services, and many other tips we believe provide you value. I would also encourage you to check out GreenStone’s website for more information and resources, as well as electronic
Our country and the entire world is blessed to have the American farmer who has, and will continue, to persevere in spite of current challenges. Thank you for what you do!
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tools to help you do business with us more conveniently. From routine commodity updates to financial calculators, online banking, electronic bills and statements and the ability to send financial information through our secure My Access portal, your online resources, and customized conveniences, continue to grow. Remember, everything we do “starts with you!” Best wishes for a productive and profitable 2019! Thank you for your business and feel free to reach out to me if I can ever be of assistance.
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Like the speed of time, it is also hard to believe that GreenStone’s patronage program has been going strong for fourteen years, reaching a total of $400 million returned to its members since its inception.
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Dave Armstrong
517-318-4105 dave.armstrong@greenstonefcs.com
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New Growth FINDING A YOUNG, FIRST GENERATION FARM FAMILY STARTING OUT ON THEIR OWN MAY SEEM RARE, YET AN ENCOURAGING PROSPECT FOR THE FUTURE OF AGRICULTURE. FOR ALVIN AND MARY KAY STOLL, THEY BELIEVE IT IS AN HONOR TO PARTICIPATE IN THE REWARDS AND CHALLENGES FARMING BRINGS AS PART OF GOD’S CURRENT PLAN FOR THEIR LIFE.
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Although Alvin grew up on a family farm in Canada, and Mary Kay in Michigan, they met as teenagers and over the course of years were engaged and eventually married. The young couple chose to settle in Michigan where they had the opportunity to run a metal roofing business. While the roofing business allowed Alvin to provide for his family, he missed working with the land and farming. Opportunity knocked for the Stolls in the summer of 2014 when, while searching for properties for sale for some of their friends who were looking to relocate, Alvin found their farm. “We were not looking to buy at the time (having just finished paying off our first home we bought together) but something about the farm caught my attention,” Alvin says.
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We soon realized one of our biggest hurdles farming full time was getting financing for crop inputs because we had not established a U.S. credit history.
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“I will always remember the breathless phone call from Alvin saying, “Honey, I found our Farm!”, Mary Kay adds. Their original plan was to pay for the farm with the help of the construction business while farming on a small scale. However, the stress from trying to run two businesses left Alvin reeling. The couple realized it would be better to do one or the other, but not both. They chose farming. “We soon realized one of our biggest hurdles farming full time was getting financing for crop inputs because we had not established a U.S. credit history,” Alvin says. “We had originally financed the farm through a faithbased lender that didn’t focus on credit scores. They relied on financial history and church recommendation which, unfortunately, had done nothing to build our credit history.” As their requests for a farm operating loan was met by “nos” from the banks, the difficulty of obtaining credit soon sunk in. A self-proclaimed “dreamer,” Alvin was determined to find a way to obtain the financing they needed. “I kept knocking on the ‘no’ door until someone answered,” he says. ➡T op Right: Choosing farming over construction gives Alvin Stoll the flexibility to spend more time with his four young children. ➡ Lower Right: Mark Dingee, GreenStone financial services officer, meets with the Stolls in their home to review their financial documents.
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It was Mark Dingee, GreenStone financial services officer in the Cadillac branch, who was able to put a loan together for them. “The Stolls are a great example of young farmers being resourceful and determined to follow their dreams,” Mark says. “It has been rewarding to work with them and see the strides they have made – first in their construction business and now with their farm. Their willingness to place their trust in us is something we respect and want to build upon.” “Mark was good enough to give us a chance,” Alvin says. “Since then he has consistently gone above and beyond. He is now like a partner. He has been here for us through some of the tough investments we’ve made to bring us to where we are today. Some of our biggest challenges are trying to make old, worn out equipment work, and there have been times he literally saved the day by helping get financing for replacement equipment on very short notice.” “There have been some steep learning curves for us,” Alvin says. “Soil science doesn’t work here – it is like farming in a sandbox. I have had to learn how to use the right nutrients and right equipment. We are now working to add an irrigation system so most of the land will be irrigated.” With additional irrigation, Alvin hopes to use more cover crops to help build up the soil. As he sought out to increase the productivity of the land and to develop a niche market, he found opportunity in the organic market sector. Raising organic crops helps him to do both. A long-term supply contract helps him lock in profits for his crops. Adding crop insurance also gives Alvin added sense of security. Along with designing the right cropping plan and marketing the crops, Alvin faces the same challenges as other young farmers, including working with older equipment and making do with the resources at hand. Above all else, the Stolls give thanks to God for bringing them to their farm and surrounding them with the people and opportunities to continue to be farmers. “God has been with us through all of this and we believe what he blesses will work,” Alvin says. ➡ Right: Helping customers achieve their goals creates strong relationships between GreenStone team members and their customers. (l-r) GreenStone FSO Mark Dingee with Alvin and Mary Kay Stoll. 7
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There have been some steep learning curves for us. Soil science doesn’t work here – it is like farming in a sandbox. I have had to learn how to use the right nutrients and right equipment. We are now working to add an irrigation system so most of the land will be irrigated.
“While it was a big stretch leaving construction behind for the farm dream,” Alvin says. “Being around my family more is a priceless blessing; especially the thought of working together as the children get older. Even though at times we are intensely busy; I still see them more frequently than I did with construction.”
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“Plus,” he adds, “I get to be a steward of part of the amazing world God created. I marvel daily at the joys and responsibilities of sowing and reaping. God has blessed us abundantly each step of the way and that’s the only reason this has worked!”
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AGRICULTURE – OPEN FIELDS BLOG BRIEF GreenStone publishes regular updates on our Open Fields blog. Check out some of the posts you may have missed at www.greenstonefcs.com/openfieldsblog. Tools to Navigate a Challenging Farm Economy The best way to prepare your farm for tomorrow, is to understand your farm today. That’s why GreenStone is dedicated to supporting organizations and events that provide resources for the agricultural community. What’s happening with the wine and grape industries Beyond consumer demand, the clamor for more wine grapes is going to be even more intense this next year, predicts Michigan Wine Collaborative President Dave Miller, who said the late January cold snap could have been disastrous for the vines.
FFA’s Impact on GreenStone Employees During National FFA Week, we reflected on the impact FFA leaves on members. It was a week that celebrated FFA’s continued commitment to educating our youth through involvement opportunities in agriculture and mission of cultivating stronger leaders in the farming community. Dr Kohl: Can I afford to pay for land? Land values always seem to be going up. At a seminar last fall, a participant asked, “What is the best way to determine whether I can afford to pay higher prices to purchase farmland?”. ■
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MARKET OUTLOOK SPRING 2019 THE OPTIMISM FARMERS EXHIBITED TO START THE YEAR HAS BEGUN TO ERODE, ACCORDING TO THE PURDUE UNIVERSITY /CME GROUP AG ECONOMY BAROMETER. THE MONTHLY AG ECONOMY BAROMETER MEASURED A DECLINE IN OPTIMISM AS FARMERS’ EXPECTATIONS FOR CURRENT MARKET CONDITIONS GOING INTO PLANTING SEASON WITH A DROP OF 13 POINTS ON THE UNIVERSITY’S CURRENT CONDITIONS BAROMETER.
“The February survey reflected a significant boost in optimism among agricultural producers after the announcement of the second round of MFP payments, Jim Mintert, Director of the Center for Commercial Agriculture at Purdue University reported. “However, it appears their positive impact eroded quickly. Compared to responses from a year ago, fewer farms said they expect their operation to grow in the future.” Slight movements in the trade negotiations in China have provided some optimism for U.S. markets. “The lack of material progress in the U.S./China trade negotiations continues to weigh negatively on U.S. agricultural commodity market prices with corn, soybean, and wheat futures all declining during the first few months of 2019,” says Paul Anderson, chief credit officer for GreenStone.
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SWINE: In livestock, hog prices, which are also highly dependent on export markets, have started to rebound during the first two weeks of March as the outbreak of African Swine Flu in the Chinese hog herd has led to an increase in U.S. hog export volume. To date, there have been 111 confirmed cases of African Swine Fever on Chinese hog farms, with the outbreak now touching 28 different provinces across the country. In total, roughly 1 million pigs have been culled thus far in an effort to try to control the spread of the disease. Current estimates are that the Chinese hog herd has contracted by 13 percent over the last 12 months, while the number of breeding sows is down 15 percent over the same period. Given this supply contraction, domestic Chinese hog prices hit 14-month highs in early March, with many industry observers expecting further price increases in the coming months. To put the significance of the issue in context, China is home to half of the world’s hogs. Further, China’s domestic annual pork consumption makes up roughly half of total global pork consumption. Given these market dynamics, China has started to increase the volume of imports of U.S. pork products in order to meet consumer demand. “The double jeopardy of disease and high prices is causing a contraction in the Chinese hog market, which is leading to favorable gains for U.S pork products being exported to China and other markets,” Anderson says. “Yet to be determined, is if this contraction will lead to a decrease in the tariffs currently in place on U.S. pork exports to China that continue to be hindered by a 62 percent duty. DAIRY: Closer to home, the continued consolidation of the Michigan and Wisconsin dairy industry is having an impact. While yearover-year production continues to climb, the rate of increase is slowing. Additionally, cow numbers have started to decline; however, per cow productivity continues to improve. “The Michigan dairy industry continues to see consolidation, with the total number of dairy producer permits down 12.2 percent over the last 12 months,” Anderson says. “That being said, total cow numbers were only down 1.4 percent over the same period, indicating cows from producers exiting the industry are being absorbed into other farms rather than being taken out of production.”
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The lack of material progress in the U.S./China trade negotiations continues to weigh negatively on U.S. agricultural commodity market prices with corn, soybean, and wheat futures all declining during the first few months of 2019.
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Additionally, daily milk production per cow increased 1.2 percent over the last 12 months, leading to total 2018 Michigan milk production being essentially flat compared to 2017. Wisconsin production also remained relatively flat in the previous 12 months with only a one percent increase in milk production. Nationally, milk production in the 23 major dairy producing states during December totaled 17.1 billion pounds, up 0.9 percent from December 2017. The daily production per cow in the 23 major states averaged 63.4 pounds for December, up 0.7 pounds from December 2017. DAIRY PROCESSING: Looking toward the future, investment in dairy processing continues to provide optimism for the long-term sustainability of the region’s dairy industry. In the past 24 months there has been over $900 million invested in milk processing in the region, including the new 8 million pound per day cheese plant in Clinton County, Michigan. According to recent news reports, the facility is on track to begin taking milk in October 2020. The processing complex, which is modeled after the Southwest Cheese Company plant in Clovis, New Mexico, is a joint-venture between the Irish dairy company Glanbia, Dallas-based Select Milk Producers and Dairy Farmers of America. When complete, the project, called Spartan Michigan, LLC, will house a 375,000-squarefoot manufacturing and warehouse facility, a wastewater treatment
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Offsetting some of the depressed economic conditions in agriculture is the relatively strong U.S. economy, with unemployment near records lows and average wages continuing to increase. Specifically, the U.S. unemployment rate stood at 3.8 percent at the end of February.
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plant, and an adjoining 85,000-square-foot protein processing plant, which will be owned and operated by the Iowa-based Proliant Dairy Ingredients. In addition to helping balance production within the Michigan milk shed (the facility will consume nearly 20 percent of Michigan’s current milk production), the plant will create roughly 250 new full-time jobs and 600 new temporary jobs to the St. John’s area.
“We remain optimistic about the long-term viability of agriculture in our region and throughout the country,” Anderson says. “The continued investment in infrastructure supporting agriculture in Michigan and Wisconsin indicates the commitment of many to agriculture.” FUTURE FOCUS: However, current market uncertainty continues to make farmers wary of making large investments in their operations, according to the Purdue report. “When producers were asked whether they have plans to grow or increase the size of their current operation in 2019, 50 percent of respondents said that they either “have no plans to grow” or “plan to reduce in size,” compared to 39 percent in 2018,” Minert reports. “Some farms in the no growth category could have limited growth
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opportunities because they are under financial stress. Last month, when 25 percent of farmers surveyed indicated they expected to take out a larger operating loan in 2018 versus 2019, a follow-up question found that 27 percent of those farms were taking out larger loans due to unpaid operating debt carryover, suggesting they were experiencing financial stress.” Offsetting some of the challenging economic conditions in agriculture is a strong U.S. economy, with unemployment near record lows and average wages continuing to increase. Specifically, the U.S. unemployment rate stood at 3.8 percent at the end of February. Additionally, inflation remains near 2 percent, which is in line with the Federal Reserve’s long-run target inflation rate. At its most recent policy meeting, the Federal Reserve indicated it expects the U.S. economy to continue growing at a solid pace in 2019, although likely somewhat slower than the pace seen in recent years. The economic outlook beyond the U.S. is more reserved. Over the past few months, some causes for concern have surfaced with regards to the macro-economy. Growth has slowed in some major foreign economies, particularly China and Europe. There is also elevated uncertainty around several unresolved government policy issues, including Brexit, and ongoing U.S. trade negotiations with China. The health of these economies is of critical importance to the prospect for improved commodity prices for many U.S. agriculture producers. ■
Thanks to Bob Utterback… We extend our sincere appreciation to Bob Utterback of Utterback Marketing in New Richmond, Indiana for his regular contribution to Partners. His experience and insight provided valuable information to our readers for many years. Beginning with this issue, your GreenStone experts will provide market information impacting customers in our Michigan and northeast Wisconsin area. Please reach out to marketing@greenstonefcs.com if you have comments or feedback.
ONE MICHIGAN COUPLE’S FIGHT BACK TO THE FARM By Sonja Begemann Reprinted from Top Producer WITH EACH TRACTOR OR COMBINE PASS, PIG SQUEAL AND KERNEL PLACED IN THE SOIL, BRIAN WASHBURN IS THANKFUL FOR THE LIFE HE’S CREATED ON THE FARM. IT WAS A LIFE HE NEVER EXPECTED TO EXPERIENCE. HIS LIFELONG DREAM WAS TO FARM, BUT NEITHER HIS NOR HIS WIFE’S FAMILY HAD ROOM FOR HIM. BUT WITH PATIENCE AND PERSEVERANCE, HE MADE HIS DREAM COME TRUE. Brian grew up “farm adjacent,” as his dad had a job in town. But Brian spent every waking minute he could helping his uncle or grandfather on the family farm in Elsie, Mich. After he graduated from college and found the family farm didn’t have enough work to support more than one family, he turned to construction where he worked for nine years—all the while using vacation days to work on his in-law’s family farm. “I worked for my wife’s grandparents and uncle for about three months when the neighbor asked me to run his hog farm and help manage the row crop business, too,” Brian recalls.
“The easiest way to diversify a crop operation is to add a livestock building,” Russell says. “It utilizes your labor, and the nutrient value from the animal waste has tremendous value that replaces fertilizer cost but also adds organic matter and improves soil health.” That’s just what the Washburns did. Five years ago, Michelle’s world was turned upside-down. Book-keeper and investment manager for her family, her husband came to her with a wild idea: Let’s build a 4,800-head hog barn.
Brian worked for his neighbor for several years until he got a call he’d been preparing for since childhood. His grandpa wanted him to come back to the farm. “My grandpa realized, ‘This farm is going to need someone from the younger generation if we are going to continue our family farm for many, many generations to come,’” Brian says.
This was the start of their venture into hogs and the first domino of dozens that fell, ending with a highly diversified operation. In addition to their initial hog investment they’ve added another 4,800-head hog building and are expanding the row crop operation. Michelle owns and operates a crop insurance company. Brian works in a familyowned seed dealership and they recently bought a small grain elevator. They’re eyeing a second one with better rail options.
That was the foot in the door he needed. Brian worked for his grandfather and with his uncle who had also returned to the farm years earlier. During this time, Brian rented equipment from them to farm the nearly 400 acres he picked up the first two years he was back.
“I find a way to make the money work, and he’s the idea guy,” Michelle explains. Finding the capital for each new venture is challenging, but they’re checking off each box to make sure they can make their investment back and then some before signing on any dotted line.
In 2009, the family operation farmed about 2,500 acres. Today Brian and his wife, Michelle, and his uncle have boosted that number to 4,200. But row crops aren’t their only iron in the fire.
Financial Hurdles. Finding a bank that would give a young couple a loan wasn’t easy—they’d only recently invested in land and hadn’t built up equity. After being turned down by banker after banker, the couple was forced to research other options. With insurance from the Farm Service Agency, they were able to secure a loan through Greenstone Farm Credit Services.
Multiple Profit Centers. A diversified business is a good goal for any farmers— especially young farmers says Moe Russell, president of Russell Consulting group in Panora, Iowa. He encourages farmers to identify business opportunities with financial potential and start small.
“The amount of money used to really scare me, especially with the pig barn,” Michelle says. “That barn cost is $1.5 million. A
$50,000 loan you can pay off by getting a job, but a $1.5 million loan you won’t pay off with a job in your lifetime. Now that we’re further into this I understand how to make it work.” They’re doing just that, and expanding, which means they have an ever-watchful eye on the books. Instead of looking at balance sheets once a quarter or a couple times a year, Michelle and Brian pore over documents for 10 or more hours every month. When it comes to the balance sheet it’s not just about achieving the highest yields or weights—it all comes down to dollars and making real profit. “We’re not cutting costs, we’re maximizing our profits,” Michelle says. “Yield is where we make our money, so we don’t cut on inputs. We evaluate cost per acre.” Skilled Team. Another area they refuse to go cheap: labor. You can’t make as much money with unreliable or unskilled help, Brian says. “While everything we’ve added to our operation has created more work, it’s also allowed us to hire more people,” Brian says. “I think many businesses say, ‘Let’s hire the cheap guy.’ The problem is they’re never as good of operators, and that’s not something I agree with.” Instead, he finds people who complement his skill set. Because he hires quality employees, he’s found more efficiency because he doesn’t have to “hold anyone’s hand.” Additionally, the Washburns credit their team to saving them money on expenses such as mechanical work. Brian and Michelle are also able to spend more time with their two daughters, Lindsey, 12, and Kyla, 9. “I don’t have to worry if I need to leave, as these guys are really good at what they do,” Brian says. “For example, we just hired a guy who used to be a mechanic, so I don’t have to take tractors and semis in anymore—he makes up for my weakness in mechanics.” Ultimately, every decision this family makes boils down to: Will it make them successful? So far, each risk has brought high rewards and something they can grow forward for their children. “We live an insane life, and we get a lot of comments and criticism about how busy we are,” Michelle says. “Most people work for the weekend; we work for our 40s and 50s when we will be able to slow down—if we want to.” ■ Partners — Spring 2019
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The Tortuous Path of the Waters of the United States By Alan Hahn
IN ORDER TO ASSESS THEIR ENVIRONMENTAL COMPLIANCE STATUS, A COMPANY MAY ASK A THIRD PARTY, SUCH AS A CONSULTANT, TO REVIEW THEIR DAY-TO-DAY PRACTICES. THE QUESTION TO ANSWER IS, “AM I OPERATING IN COMPLIANCE WITH FEDERAL, STATE, AND LOCAL ENVIRONMENTAL REGULATIONS?”
Whether regulations apply to an activity (including farming) at a company is often a matter of defining terms. What is or may be discharged to air, land or water? What types of chemicals are used and/or stored, and where are they stored? What is the threshold for reporting? What is the business classification (e.g., agriculture, food processor, etc.)? These and other questions must be answered in order to determine compliance status.
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One of the more important and potentiallyimpactful questions agriculture must consider surrounds the question of water. Specifically, whether water that is discharging, or potentially discharging, is regulated. The issue of a regulated water goes back to the federal Clean Water Act (CWA) of 1972. The language in the original CWA stated the goal was to eliminate pollutant discharges into navigable waters of the United States by 1985. For the last several decades, the Environmental Protection Agency (EPA) and the United States Army Corps of Engineers have attempted to define Waters of the United States, or WOTUS. This “simple” question of what is and is not a regulated water has been litigated more than once all the way to the Supreme Court of the United States. One of those Supreme Court cases, Rapanos v. United States, was based on a site in Michigan. Our firm provided some of the technical guidance with respect to the groundwatersurface water “nexus.” In the summer of 2015 under the Obama administration, a new WOTUS definition and rule was issued in what was to be the “final” word. This 300-page final rule was quickly challenged in the courts and the application of this rule remains uncertain nearly four years later. Defining this WOTUS term is critical to potential applications of specific environmental regulations for farmers as well as other industries, so this is not a minor question of semantics. For example, depending on how WOTUS are defined, it can affect a farmer’s ability to grade or drain farm fields. Under the 2015 definition, a wetland behind a berm or dike was considered adjacent and, therefore, a jurisdictional water. In fact, under the 2015 rule, it would be difficult to make the case for any water to be non-jurisdictional. The Trump administration, as with the Obama administration, is determined to answer this decades-old question. To this end, on December 18, 2018, the EPA announced their proposed revision to the WOTUS rule. The EPA Administrator, Andrew Wheeler, said, “The overarching guiding principle that I gave the staff in crafting the WOTUS rule was that I believe any property owner should be able to stand on their property and be able to tell for themselves whether or not they have Waters of the United States on their property without having to
hire an outside consultant or attorney.” The consistent theme from Washington, D.C. under president Trump has been the idea of cooperative federalism. In general, this cooperation is intended to reduce “heavyhanded” federal regulations in favor of allowing states to issue laws and regulations. The EPA and United States Army Corps of Engineers’ Fact Sheet for the Proposed Revised Definition of WOTUS states in part, “The agencies’ proposal respects the constitutional and statutory limits of federal government to regulate navigable water under the Clean Water Act and gives states and tribes more flexibility to determine how best to manage waters within their borders.” California decided they would indeed define regulated water in their state. The draft rule in California was met with quick response from the California Farm Bureau Federation. The Farm Bureau stated that the new regulations would affect farming activities across the state. The California Farm Bureau Federation also stated, “The proposed procedures go far beyond regulating discharges to wetland waters of the state that fall outside the protection of the federal Clean Water Act. They would regulate all waters of the state, including all waters of the U.S. already protected under the Clean Water Act…The procedures would also govern non-wetland waters of the state already protected under other state laws.” With respect to how the new WOTUS rule may affect Michigan, the Michigan Farm Bureau states, “This new proposed rule means the Clean Water Act will be implemented and enforced the way Congress intended, giving states the ability to regulate their own waters. Michigan already regulates many surface and ground waters as ‘waters of the state’ (see 1994 PA 451) so this rule means farmers in Michigan will not see additional regulation from the federal level.” One potential complicating factor is the fact that Michigan has new leadership, and they will be implementing their own vision with respect to environmental regulations. Michigan Attorney General, Dana Nessel, made environmental protection a key campaign issue. She has already removed Michigan from the multi-state lawsuit against the Obama era “Clean Power Plan,” which was intended to reduce carbon dioxide emissions.
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Defining this WOTUS term is critical to potential applications of specific environmental regulations for farmers as well as other industries.
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Michigan’s leadership under Governor Whitmer and Attorney General Nessel may have something to say about the proposed federal WOTUS changes and how Michigan will address environmental protection in general. Will they rest on the existing framework that defines waters of the state, or will they look to redefine these waters? Time will tell.
Similarly in Wisconsin, the Farm Bureau Federation applauded the court’s ruling to stop enforcement of the WOTUS rule. They too believe it was an overreach by the EPA, and jeopardizes a farmer’s ability to farm. It is widely viewed the state of Wisconsin has high standards to protect water quality and the state’s natural resources are best managed by the state. In order to maintain these standards, there is a watchful eye in Wisconsin for beefing up their state standards in light of this recent ruling. Even the most optimistic are cautious with respect to whether we will soon have a workable definition of Waters of the United States from Washington, D.C. Assuming the new rule passes, it may be (again) headed to the U.S. Supreme Court. Keep an eye on the developments of the WOTUS definition, but perhaps more so, keep an eye on how the state will address this and other environmental issues. As former speaker of the house, “Tip” O’Neill, famously said, “all politics is local.”■ ABOUT THE AUTHOR
Alan Hahn is an Environmental Professional and Business Development Manager at The Dragun Corporation in Farmington Hills, Michigan.
The opinions stated herein are not necessarily those of GreenStone Farm Credit Services. Partners — Spring 2019
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Growing Solutions Identifying limitations for customers which may be curbing sales, is a proven way to increase sales and build brand loyalty, and for one GreenStone customer a way to integrate a new concept into an old idea. Since the mid-1950s, Eckert Greenhouse in Sterling Heights, Michigan has supplied the neighbors and communities around the Detroit area with a wide variety of flowers and plants. Their local following and reputation for unique varieties has allowed the family-owned business to survive through the many economic cycles of the past decades. So when sales of hanging baskets to municipalities began to dwindle, Karl Eckert reached out to his customers to ask why. The answer: it required too much labor to water the plants every day. Karl and his team at the greenhouse provide the plants and planters lining the streets of many towns across Michigan.
“ ➡K arl Eckert discovered the solution to reduction in sales – create a container that extends the watering cycle.
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Convinced he could find a solution to the watering problem, he began designing a system to prolong the need for watering. Reaching out to tier-one automotive suppliers in his area, Karl designed a two-part hanging basket with a liner equipped with a wick system pulling up water from a reservoir in the pot, allowing the plants to survive 3 to 4 days between watering. “At the time, the governor was encouraging automotive manufacturers to diversify their businesses so they were willing to work with me on my design,” Karl says. At the concept stage, Karl reached out to his GreenStone loan officer, Tracy Jelinek, to inquire about additional financing to start the project. A long-time GreenStone customer, Karl knew GreenStone had the understanding and commitment to agriculture he needed in a financial partner.
GreenStone helped us get the inventory for the baskets started and launch the new product...Their willingness to work with me made it all possible.
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“I’m so fortunate and honored to work with such a talented, progressive and forward-thinking individual,” Tracy says. “Karl and his team saw a need in their industry and went to work building a solution to that need. It is so cool to see the fruits of his labors on people’s porches, down city streets, as well as for sale in the greenhouses of my other customers.” The first H2O Labor Saver basket was a 23” hanging basket designed for municipalities. As success of the product grew, Karl produced a consumer version of the basket called the “Weekender” available in 16” pots. “GreenStone helped us get the inventory for the baskets started and launch the new product,” Karl says. “Their willingness to work with me made it all possible.” Working with the automotive manufactures to develop the die, Karl than reached out to local molding companies to produce the products. Employees at the greenhouse assemble the products and prepare them for shipping. “It is important to me to keep the production local,” Karl says. “I could save money having them made in another country, but I want to support the people around me.” An additional problem emerged from the new product design: the municipalities didn’t have hangers strong enough to hold the new baskets. So, Karl went to work again on designing a new hanger for the baskets. Working with an iron fabricator in northern Ohio and Michigan, they are now offering hangers strong enough to support the baskets. When Karl brought the new planters out to his customers, they were skeptical at first but became quick believers as they saw a reduction in labor while still maintaining beautiful hanging baskets in their towns. Armed with the local success, Karl took his invention on the road to trade shows and conferences. Soon he gained the attention of third-party vendors willing to promote his product across the country. Through the third-party distributors, Karl’s baskets can now be found across the United States and in other countries. In addition to the hanging baskets, Karl has since built a 28” wrap around pole basket equipped with an outer pot that can be used year round.
Developing the new baskets was a continuation of Karl’s ability to innovate and adapt to consumer desires since joining the family business in 1977. “Our success has always come from giving people what they want,” Karl says. “Years ago everybody wanted flats of plants, so that’s what we had. Now people want pots, hanging baskets and customized planters, so that is what we offer.” Today the greenhouse holds 700-800 different plants to be used in combination pots and planters. Nearly 100 percent of the plants leave out the front door with customers in the area. A small percentage are sold to communities and municipalities. “We are on an island, surrounded by homes and business. We are too small to go wholesale, so we have to be our best in retail,” Karl adds. Information about Eckert’s Greenhouse and the H2Osaver baskets is available at their website at www.eckertsgreenhouse.com or www.h2olaborsaver.com. ■
➡ Top of page: Providing hundreds of varieties of plants helps Eckert Greenhouse meet the changing desires of his customers. ➡ Above: Karl Eckert’s team of designers works to build unique planters and baskets for their customers.
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CONNECT
NEWS:
Sevilla Promoted to Regional VP of Sales and Customer Relations
PATRONAGE DAY RECAP GreenStone members and employees celebrated the benefits of belonging to a cooperative on Patronage Day – March 14. On this day, checks totaling $82 million were distributed to customers across the association. Those members picking up their checks at their local branch enjoyed a variety of activities and refreshments. The annual Patronage Day activities gives GreenStone employees an opportunity to express our appreciation to our members for putting their trust in us every day. GreenStone members represent a wide-range of agricultural production, business and rural lifestyles. “As we work with our members through the extended downturn in the agricultural commodity markets, we remain impressed with the tenacity, determination and resilience our members continually express through challenging times,” says Dave Armstrong, GreenStone CEO and president. Patronage payments are determined based on prior year earnings and approved by the GreenStone board of directors. ■
235.3 million pounds of tart cherries
members
Wineries
200+
24,000+
24+ million
acres farmed
1.1 billion pou nds of sugar produced
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LOCATIONS
25,500 new homes built
million fresh Christmas trees
3+ billion
million returned to members
pounds of cheese produced in Wisconsin
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In this position, Wayne will serve as the leader of the financial services officers and crop insurance specialists in the Lakeview, Alma, Saginaw, St. Johns and Corunna offices. He will be responsible for the customer service from this group and the guidance and development of the regional sales team. “Wayne has demonstrated excellent customer service and leadership during his time as a financial services officer and he will be an impactful addition to our regional leadership team,” said Ian McGonigal, senior vice president of sales for GreenStone. “His tenure with GreenStone, coupled with his knowledge and product understanding with help ensure a seamless transition and exceptional service for our customers.” Wayne began his career with GreenStone’s Traverse City branch in 2008 as a credit analyst. He transferred to the Bay City branch in 2009 where he served our traditional farm customers until his recent promotion.
2.34 $400
Wayne Sevilla has been promoted to regional vice president of sales and customer relations for GreenStone, overseeing the sales teams within five of the cooperative’s branch locations in mid-Michigan. He is replacing Cindy Birchmeier who recently transferred to a vice president of credit position for GreenStone.
41.5
billion pounds of milk produced
A native of the Bay City area, Wayne attended Central Michigan University where he earned his degree in Business Administration. “I am looking forward to leading the Heartland region in providing relationship-based customer service to our members,” Wayne says. “Over the years, I have been committed to serving our customers and I plan to continue providing a high level of service to more customers in my new role.” ■
GreenStone’s 2018 Annual Report Showed Steady Growth
• Net Income: $185.2 million
GreenStone Farm Credit Services released its 2018 Annual Report in March. The report highlights the record-level earnings the association experienced in 2018, powered by internal efficiencies and a diverse loan portfolio.
• Total Loan Growth: 4.5 percent
“Through our diversified portfolio growth, continued vigilance in maintaining cost effective operations and working closely with each member to meet their needs, GreenStone remains in a very favorable financial position. This strong position helps us design individual solutions for our members and allows us to return an even higher percentage of earnings to them through our patronage program,” says Dave Armstrong, GreenStone CEO and President. Based on the 2018 earnings, the GreenStone board of directors announced a record patronage payment of $82 million distributed on March 14, 2019. This year’s payment brings the total patronage paid to our memberowners to $400 million since the program’s inception in 2006. Other financial highlights in this year’s report include:
• Total Assets: $9.0 billion • Patronage Paid: $400 million “Most importantly, we remain committed to our members and optimistic about the future of American agriculture and rural communities,” Armstrong says. “The agriculture industry is relatively healthy compared to the depth of downturns in the past and GreenStone remains well positioned to support its members today and in the future.” The report can be viewed and downloaded on the association’s website, www.greenstonefcs.com. ■ Facilities Update Spring 2019 The Ionia branch remodel was completed in March with staff returning to the main level of the building. Outside the building, the project will continue with landscaping and parking lot work through this summer. A new branch building construction is underway in Sandusky and estimated for completion in June 2019. ■
seminars for 200 individuals interested in building a new home. Packed with relevant and timely information, the sessions covered the home construction process from start to finish, including topics: • Determining which selections will add value to your home • Considerations for do-ityourself or hiring a contractor • Financing options for your project • Loan approval process If you missed this year’s construction events, contact your local GreenStone branch to get more information for your individual needs! ■ Logging Forums GreenStone recently sponsored two Logging Forums in northern Michigan , providing loggers and attendees relevant industry education and updates. Both events were offered at no charge, and attendees also earned 4 SFI points learning about the following topics:
Construction Seminars
• Equipment financing, accounting, record-keeping and business planning
This past winter, GreenStone hosted more than 15 construction
• Master Logger certification training information
• A legislative update and an update from local mills If you are interested in attending a logging forum next year or learning more information, please visit your local GreenStone branch. ■ Ag Day at the Capitol GreenStone celebrated with many others at Michigan’s Ag Day at the Capitol this year. The event once again provided a great way for agriculture industry leaders to meet with Michigan legislators about current topics and issues, while showcasing the diversity of Michigan agriculture through product samples and education. ■ Wisconsin Co-op Day The second annual Wisconsin Co-op Day at the Capitol was held in February where 35 cooperatives came together in Madison, Wisconsin to share their collective story. Wisconsin Co-op Day at the Capitol gives the cooperative network the opportunity to become “citizen lobbyists” for the day and explain to their legislators the importance of organizations, like themselves, to their local districts. It also provides members the connection to advocate for issues that impact their cooperative. ■
Mark Your Calendar... APRIL
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Small Town & Rural Development (15-17) Crystal Mountain, Thompsonville, MI GreenStone Annual Meeting East Lansing, MI
MAY
7
GreenStone Election Ballots Mailed to Members
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GreenStone Offices Closed In honor of Memorial Day
JUNE
19
4-H Exploration Days (19-21) Michigan State University, East Lansing, MI
JULY
10
Wisconsin State FFA Convention (10-13) Madison, WI
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GreenStone Election Ballot Deadline
GreenStone Offices Closed In honor of Independence Day
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Michigan Livestock Expo (10-14) Michigan State University, East Lansing, MI
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Michigan Dairy Expo (15-19) Michigan State University, East Lansing, MI
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Michigan Livestock Expo Sale-abration Michigan State University, East Lansing, MI
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Wisconsin Farm Tech Days (23-25) Johnson Creek, WI
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CIRCLE OF EXCELLENCE RESULTS GREENSTONE STAFF TAKE PRIDE IN PROVIDING MEMBERS WITH GUIDANCE AND THE BEST SERVICE POSSIBLE. EACH YEAR THE SALES STAFF AT GREENSTONE WHO WERE AMONG THE TOP PERFORMERS WITHIN THE COOPERATIVE ARE RECOGNIZED IN THE CIRCLE OF EXCELLENCE REWARDS AND RECOGNITION PROGRAM. THIS IS JUST ONE-WAY GREENSTONE ACKNOWLEDGES THESE DEDICATED INDIVIDUALS AND THEIR HARD-WORKING SUPPORT TEAM. VARIOUS CRITERIA SUCH AS LOAN AND REVENUE GROWTH AND NEW BUSINESS ARE TAKEN INTO CONSIDERATION WHEN RANKING THE ACHIEVEMENTS OF SALES STAFF. The top GreenStone staff being recognized this Spring as the 2018 Circle of Excellence award winners are: Platinum Award Winners
Sales Leadership:
Commercial Lending:
Agricultural Financial Services Officers:
• Melissa Humphrey, West Region
• Troy Click, Dairy
• Mitchell Schafer, Grand Rapids
Gold Award Winners
• Jake Moegle, Sandusky • Mark Oberlin, Lakeview • Wayne Sevilla, Bay City • Mark Dingee, Cadillac • Kim Knoerr, Bay City Country Living Financial Services Officers: • Ashlee Guerrero, Ann Arbor • James Cole, Howell • Brian Peariso, Bay City Commercial Lending: • Brent Spencer, Dairy
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Agricultural Financial Services Officers: • Jennifer Whitford, Alma • Michael Kennedy, Ionia
Sales Leadership: • Benjamin Spitzley, CLU Dairy Crop Insurance Specialists: • Cory Blumerick, North Region
• Derek Tahaney, Allegan
• Robert Netrefa, NEWI Region
• Matthew Willbrandt, Schoolcraft
• Earl Zelmer, Southwest Region
• Matt Alt, Grand Rapids • Shaun Gainforth, Caro Country Living Financial Services Officers: • Amanda Kroll, Little Chute • Deborah Teller, Concord • Kimberly Cool, Cadillac
Tax and Accounting MVP Award: • Eric Vandivier, Tax & Accounting Manager, Little Chute Achievement Award • Devon Feldpausch, Country Living Financial Services Officer, Hart ■
SERVICE ANNIVERSARIES
Pause for Applause... 1. National 4-H Council announced that Addy Battel, 16, of Cass City, Michigan, is the winner of the 2019 4-H Youth in Action Pillar Award for Agriculture. Battel was recognized nationally for her leadership as cofounder of “Meating the Need for Our Village,” a program designed to combat food insecurity in her community.
2. GreenStone members Blaine and Kim Baker were named the 2019 MSU Dairy Farmer of the Year. The award was given by the Department of Animal Science at Michigan State University and presented at the Great Lakes Regional Dairy Conference.
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3. Three individuals were recognized by
the Michigan Pork Producers Association for their excellence in pork production and contributions to the pork industry. Larry Urban, who recently retired as a vice president of commercial lending for GreenStone, was awarded the Distinguished Service Award, Michigan Pork Producers Association’s highest honor. This award is bestowed on those individuals who have made a significant lifetime contribution to the pork industry at both the state and national levels. Andy Snider of Hart, Michigan and GreenStone board member, was named the Annual Master Pork Producer for demonstrating skill in proficient pork production and for taking an active leadership role in the Michigan pork industry. MPPA also honored Jason Klein, with Dykhuis Farms, the Swine Herd Manager Award for his superior commitment, knowledge and leadership in his role as a manager of a pork production operation.
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— Ronald L. Hendrick Dean, MSU College of Agriculture and Natural Resources
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Please accept my thanks for your recent gift of $25,000 designated to the Michigan FFA Foundation. Your continued commitment to FFA is sincerely appreciated, as is your support to many areas within the College of Agriculture and Natural Resources.
—Lexi Gale, 2018 Scholarship Recipient
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April: Rose Jodway (20) Robert Check (10) Cory Blumerick (5) May: Kelly Aiken (25) Deborah Demerath (20) Timothy Tanner (10) Rebecca Taylor (5) Jerilyn O’Leary (5) Miranda DeVries (5) Mitchell Schafer (5) June: Cindy Badgerow (25) Peter Hirschman (15) Melissa Humphrey (15) Charles Spencer (15) Elizabeth Wing (10) Gretchen Hollingsworth (10) Sally Smith (10) Nicole Lindke (5) Brett Dutcher (5) Justin Rudy (5)
On behalf of Michigan State University Extension, thank you for your recent gift to the Dairy Team Programming Fund. Through your gift, MSU Extension helps people do their jobs better, raise healthy and safe families, strengthen their communities and set their children on the path to bright and successful futures.
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— Jeffrey W. Dwyer, PhD Director, MSU Extension
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Thank you for selecting me as a recipient for the $1,000 scholarship. Your generosity and support will greatly help me in my educational expenses. Thanks again!
Help GreenStone congratulate and thank these staff who are celebrating an employment milestone.
Thank you for helping to inspire youth and grow true leaders with your pledged gift and the first payment of $15,000 to the Michigan 4-H Foundation to support volunteer leader recognition, volunteer leader training, and GreenStone Farm Credit Services staff engagement. —Sara Stuby, 4-H Foundation President — Jacob DeDecker, PhD, State Leader of Michigan 4-H Youth Development
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...Candid Comments
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BEHIND THE SCENES–
Brett Dutcher, East Lansing, MI Senior Information Technology Manager 4 years of service
Through our collaboration with other Farm Credit associations, our Information Technology team provides products and services to other associations across the country. Read below for more information on two of the individuals working to bring GreenStone expertise to others.
What role do you play in GreenStone’s efforts to work with other associations?
Matt Poland, East Lansing, MI VP of Application Services 14 years of service Describe how your role carries out the GreenStone mission of supporting rural communities and agriculture: I lead several information technology teams responsible for providing custom-built and purchased software systems for both customer and staff utilization. I am excited when we have the opportunity to improve a customer’s experience through technology and help GreenStone be a responsible provider of financial services through operational efficiencies. What role do you play in GreenStone’s efforts to work with other associations? The CentRic Technology Collaboration is a formal partnership between nine Farm Credit associations. We jointly deliver core technology systems through GreenStone as the facilitating organization. That means we’ve created a software-delivery competency center in East Lansing at an economy of scale larger than any one of us could produce individually. In this I have been privileged to serve as a technology leader and expert for our collaboration for the entirety of my career. What do you enjoy most about your role at GreenStone? There’s a palpable sense that we’re all in this together. The Farm Credit System is uniquely strong because we have other associations we are not in direct competition with. I greatly enjoy the
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wealth of wisdom and expertise freely shared across the System. I can call up a peer in a similar role across the country and openly exchange ideas on how to solve problems we commonly face. We truly are better together! What changes have been incorporated in your role to meet evolving customer needs? Vigilance and adaptability is crucial. I have observed a slow and steady increase in customer expectations for eCommerce capabilities. Customers are expecting more self-service, online platforms and mobile access. Over the years we’ve needed to evolve to provide these capabilities. We’ve targeted newer skills with the talent we hire and provide different training opportunities than we have before. Similarly, it has impacted how we structure our teams, prioritize projects, and consult with stakeholders. We can never stay complacent with how we’ve operated in the past. What do you enjoy doing in your free time? When I’m not enjoying quality time with my family, I competitively shoot pool in leagues, tournaments or simply with friends. You can play a single game or you can immerse yourself in it for hours and anybody can play. For me, playing has been a family tradition that I’ve enjoyed for over 20 years.
My team analyzes and develops the system enhancements for the internal software our CentRic Technology Collaboration (CTC) uses to process new loans and service existing loans. We gain efficiency by collaborating on the technology we use, but we also understand that each association in our collaboration has different needs, which are derived from their board of directors, customers and agricultural markets. What do you enjoy most about your role at GreenStone? I love problem solving. All problems are like a puzzle, and I enjoy working with a group of people to solve these problems together with one common goal. We want to make sure we give our internal customers an efficient process to deliver lending and a variety of services to our rural communities. What changes have been incorporated in your role to meet evolving customer needs? Continuous Delivery. This means we have had to become more responsive and flexible in order to implement requested changes faster. For example, our staff will share ideas for enhancements or changes to a current process in order to meet the needs of their customers, and my role has had to adapt in order to deliver those changes faster than we were able to previously. What do you enjoy doing in your free time? I enjoy spending time with my family, playing golf and soccer, and watching a lot of different sporting events. ■
LET YOUR VOICE BE HEARD New online voting option coming with your ballot! One of the many benefits of belonging to a cooperative is the opportunity to have an influence on the leadership of the association. Each year, GreenStone members participate in selecting which members will serve on the association’s board of directors and nominating committee. On a four-year term basis, board seats in specified voting regions are voted on by those regions; in 2019, regions 6 and 7 will be electing two directors each to the Board of Directors. Annually, all Nominating Committee members are elected, all members vote for the committee representatives. To simplify the voting process for member participation, improvements will be incorporated this year. New in 2019, members have the option of submitting their ballot online or by postal mail. Each member will receive their ballot in the mail during the first two weeks of May. Ballots will also be sent by email to those members who have provided their email address.
Members can choose the voting method most convenient for them. To validate the voting process, each ballot will have a code distinctive to the member or entity eligible to vote. If duplicate ballots are submitted (by mail and/or online), the last submitted ballot will be the one counted. We are hopeful this new process will make voting for GreenStone leadership easy for all members to participate.
All ballots must be received by midnight on June 12, 2019. For more information about the election and the cooperative’s governance, go to our website www.greenstonefcs.com/ elections to meet the candidates. If you are interested in being considered for a director or nominating committee position, please visit www.greenstonefcs.com/governance. ■
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The GreenStone Story:
Local in Service – Global in Reach WITH 36 LOCAL BRANCH OFFICES THROUGHOUT MICHIGAN AND NORTHEAST WISCONSIN IT CAN FEEL LIKE GREENSTONE’S IMPACT IS LIMITED TO OUR LOCAL COMMUNITIES. AND WHILE SERVING LOCAL COMMUNITIES AND PROVIDING RELATIONSHIP-BASED SERVICE TO OUR MEMBERS IS FUNDAMENTAL TO OUR MISSION, WE ARE ALSO A PART OF A MUCH LARGER ORGANIZATION THROUGH THE NATIONAL FARM CREDIT SYSTEM.
As a member of the Farm Credit System, we often join forces with colleagues around the country on issues and initiatives important to agriculture and rural America. These efforts include visiting with legislators in Washington, D.C. to discuss rules and regulations affecting our customers or the System at large. It also includes collaborating across associations to provide the most innovative and effective products and services to all Farm Credit customers. For GreenStone, that collaboration starts with our team of technology experts working together to support nine Farm Credit associations with information technology services. Supplying these services to other associations allows GreenStone to continue to develop and deliver leading-edge technology services to our customers and within the infrastructure of our own association. “The collaboration through CentRIC Technology Collaboration (CTC) allows the other associations access to a larger information technology operation, providing stronger support and resources than they could achieve on their own,” says Steve Junglas, Chief Information Officer for GreenStone Farm Credit Services. “We benefit
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by reinforcing our position as a technology leader within the Farm Credit System with an increased economy of scale.” In addition to our collaborative efforts in technology, GreenStone works across the System to share insights and knowledge in several other areas. These efforts take place through formal working groups or large-scale learning and development programs. Through our unique working relationships with other Farm Credits, we are able to bring the best products and services to our local customers. “We continue to develop the portfolio of services we offer through CTC to include more services and to provide resources to more associations,” Steve says. “It is encouraging that other associations are interested in tapping into the resources our members are receiving every day.” GreenStone’s online tools and resources, such as My Access and online loan requests, are some of the features other associations have helped to strategize and now have
access to through CTC. Information technology development and programming to support internal functions can also be obtained through the arrangement. Member Access
If you are a current GreenStone member and want to take advantage of the many resources available through My Access, you can create your own secure account today on our website at www.greenstonefcs.com. My Access is a single, secure login you can use to open the door to a variety of communication tools to make accessing your account and working with lender seamless. Here are a few of the resources available through My Access: • File Exchange: Utilize twoway communication and send documents securely between you and your GreenStone staff. • My Documents: View and download specific documents GreenStone has securely stored, and access and print bills and statements.
• My Alerts: Take control and establish custom alerts to be sent to any email or mobile phone number you desire. • Online Banking: Allows you to manage your accounts 24 hours a day, view account history, details and drafts, transfer funds, and schedule payments. In addition, you can access your information and remotely deposit checks through our convenient app, available in the App and Google Play stores. • Online Loan Request: Apply online for your country living financing with our simple and convenient loan request. • My Profile: Easily manage your email address, password, security questions, authentication image and phrase, and sign up for paperless bills and statements. If you would like more information on the technology services available to GreenStone members, take a look online, www.greenstonefcs.com, or ask your local GreenStone branch team! ■
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The collaboration through CentRIC Technology Collaboration (CTC) allows the other associations access to a larger information technology operation, providing stronger support and resources than they could achieve on their own.
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Legislative Matters:
IN SEARCH OF OPPORTUNITY– CORN VERSUS HEMP IT CAN TAKE A LONG TIME TO BE HEARD, AND EVEN WHEN VOICES GET LOUD IT CAN TAKE TIME FOR ACTION TO FOLLOW. THERE HAS BEEN A LOUD VOICE TO MAKE HEMP A LEGAL AGRICULTURAL COMMODITY AND THE BREAKTHROUGH OCCURRED IN THE 2018 FARM BILL. This bill legalizes industrial hemp that has a tetrahydrocannabinol (“THC” the psychoactive component of marijuana) concentration of no more than 0.3 percent by removing it from schedule I of the Controlled Substances Act. Now that the cry to legalize industrial hemp has been heard, what does it mean for farmers? Well, it may take a while to realize the opportunity once again. The world of agriculture is more complicated and of course very well regulated.
Keep in mind that hemp cultivation has not always been banned. Many of our founding fathers grew hemp and advocated its uses and benefits. Most notably, Thomas Jefferson wrote the draft of the Declaration of Independence on hemp paper. Hemp was once an agricultural staple – its durable fibers used for numerous products including canvas, cloth and rope. Hemp has been a domesticated crop longer than the staple corn, yet it was restricted
in the 1930s era to curtail the use of the marijuana drug. Corn, or “maize,” was domesticated from its wild grass ancestor more than 8,700 years ago, and it has evolved ever since to become an agriculture powerhouse. Selective breeding, technological advancement in use and processing and other efficiencies in growing and harvesting over many years has made corn the crop of choice for many farmers for sustainable income.
The regulation and system has yet to be developed as next steps are being taken to do so now.
The first traces of hemp were found way back in 8000 BC in Asian regions that are now modern day China and Taiwan. When you consider that human agriculture started about 10,000 years ago, you can assume that hemp was one of the first agricultural crops. There has been an economic engine attached to the hemp industry in the past and there has even been times that the U.S. government encouraged farmers to grow hemp in the “Hemp for Victory” program for WWII.
When restrictions are lifted, hemp will be treated the same as any other commodity crop. The signing of the 2018 Farm Bill will provide economic stimulation; bring countless jobs and income potential back to the American soil. By removing the restrictions on hemp farming, the 2018 Farm Bill places hemp from American farmers into the hands of American manufacturers and consumers. The farmers will still need to grow it.
Putting hemp back in the mainstream of agriculture will not be like turning on the lights. Like corn, it will take time and ingenuity to make the crop an economic engine.
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States and Indian tribes may regulate the production of hemp by submitting a plan to the Department of Agriculture (USDA). The bill also makes hemp producers eligible for the federal crop insurance program and certain USDA research grants. With the signing of the 2018 Farm Bill, hemp farming will no longer be limited to the terms of the pilot program detailed in the 2014 Farm Bill.
The hemp industry is expected to evolve into a $22 billion market by 2022. There is a lot of work to be done to create the infrastructure and develop the market. Stay tuned as there is more to come to make this a reality. ■
PAC Progress:
CHANGE IS HAPPENING FAST ON ISSUES IMPORTANT TO THE SYSTEM Thanks to the extraordinary support of members, directors, and employees, we are well positioned to stand for agriculture and Farm Credit.
The 2019 MI GreenStone PAC contribution campaign was largely successful with over $13,000 being contributed by more than 230 Michigan GreenStone customers. The Board of Directors and management team have diligently evaluated legislative leaders and will be sharing the importance of rural communities, agriculture, and the Farm Credit System with elected officials. For the 2019 WI Farm Credit PAC Contribution Campaign almost $1,000 was contributed by 15 Wisconsin GreenStone customers. The WI Farm Credit PAC funds will also be disbursed by your Directors and management team in coordination with the Cooperative Network after an evaluation process.
The national 2019 Farm Credit PAC drive competition between the 14 AgriBank district Farm Credit associations brought in almost $240,000 in contributions. Over 145 GreenStone employees and directors directly contributed almost $18,000 of that total. A portion of the Farm Credit PAC funds will be allocated to the GreenStone territory and your Directors and management will assist in the delivery and communication of the GreenStone and Farm Credit message. As the debate over policies critical to agriculture—from infrastructure to trade— continues, we are well positioned to stand for rural communities, agriculture, and Farm Credit. The work has already begun with letters being submitted regarding
an FCA board nomination and continued funding for agriculture programs. In addition, the educational efforts will continue as Congress holds a hearing on farm credit. As the legislative environment continues to change, the importance of educating and building relationships with elected officials becomes increasingly evident. That is why support of the PACs is so important. Thank you for joining your fellow cooperative members, directors, and employees in creating opportunities to communicate the importance of agriculture to our own communities, country and world. ■
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Directors’ Perspective– THROUGH 2018’S DIRECTOR ELECTIONS, WE WELCOMED TWO NEW TEAMMATES TO GREENSTONE’S BOARD OF DIRECTORS. STARTING WITH A BOARD ORIENTATION AND MOVING RIGHT INTO 2019 PLANNING, MIKE TIMMER AND JED WELDER HAVE EXPERIENCED NEARLY A YEAR AS A DIRECTOR FOR THE COOPERATIVE. LIKE ALL MEMBERS, EACH HAS THEIR INDIVIDUAL STORY AND STRENGTHS THEY BRING TO OUR ASSOCIATION, AND BOTH ARE FOCUSED ON PROVIDING LEADERSHIP FOR A STRONG AND COMMITTED FUTURE FOR OUR GREENSTONE MEMBERS.
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Mike Timmer
After graduating from college, I returned to our family’s farm to work with my father. We were milking cows at the time and in 1993 transitioned the livestock portion of our business to raising replacement heifers. We worked closely with GreenStone in those transitional years as it was difficult to make changes and adjust to not having the bi-monthly milk check. That was my first experience working with a lender, and I was impressed by the commitment GreenStone showed helping us through the transition. Although that experience was many years ago, I see GreenStone has this same commitment today. When I was asked to serve on the board, I wasn’t sure what the business side of the cooperative would look like. I knew it would be my first time serving an organization that works so closely with its members to help them succeed. As a new board member, I have been impressed with the leadership’s efforts to be responsible to the members of the
cooperative, while working to meet the needs of each individual, as we all navigate these more difficult times in agriculture. Their constant drive to assess where the cooperative is financially and where things might be headed in the future have motivated me to spend more time looking at my business financial measures and make plans for the coming year. I have really enjoyed being a part of the board and working with the leaders that make the daily decisions. They work hard to stay ahead of the curve on many fronts,
not just financially—we are in good hands as a cooperative. The most rewarding part of my first year on this board has been the decision to return $82 million back to the members in the form of patronage dividends. This is when the importance of having an efficient cooperative really made an impression on me. I look forward to serving in the coming years, working with fellow board members to find ways to continue the success of the cooperative’s efficiency and individualized service to our members.
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As a new board member, I have been impressed with the leadership’s efforts to be responsible to the members of the cooperative, while working to meet the needs of each individual, as we all navigate these more difficult times in agriculture.
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Jed Welder
Together with my wife, Milka, and my daughter, Daniela, (10 years old and in her third year in the Montcalm County 4-H) and son, Mirko, (5 years old), we farm 1,200 acres of corn, soybeans and wheat in the sandy loam and pine trees of Sidney, Michigan, northeast of Grand Rapids. I decided to serve as a board member after testifying in front of the Senate Agriculture Committee on the Farm Credit System. As a new farmer and a veteran, I was able to tell our story in Washington, D.C. of how GreenStone helped my family get our start in farming. Having met board members then, and now serving with them, I appreciate the incredible range of knowledge and experience they each bring to the board; I hope my background as a veteran will bring a new perspective to our role in guiding the association into the next 100 years.
Even now that I have been on the board for awhile, I find myself continually surprised by how much knowledge I gain from each board meeting and training session I attend. It is an honor to interact with both the board members and the executive team and see how seriously they take the strength and future of our cooperative. Each decision that is discussed in the board room comes from the standpoint of how can we continue our strong position to do what is best for our members. The range of farming operations and backgrounds represented on the GreeStone board helps us to learn from each other - the challenges we each face in different parts of Michigan and Wisconsin helps us be better at what we do, both on the farm and in the boardroom. Being proactive has been an attribute of successful organizations I have been a part of, it fills me with a great deal of confidence to see how proactive our organization is in planning for both challenges and opportunities as we move ahead. ■
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Each decision that is discussed in the board room comes from the standpoint of how can we continue our strong position to do what is best for our members.
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SURROUNDED BY NATURE 29
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➡ Opposite page left: The Gemellaros built their home to reflect the beauty around them with many modern features. ➡ Left: GreenStone customers, Marc and Sharon Gemellaro, built their once-ina-lifetime home with the help of our country living financing.
the beauty around them while adding modern amenities to make their home a daily retreat. The home features an open, airy interior with a large wall of windows facing out over an infinity pool and an expansive outdoor entertaining area, into a deep woodlot giving an “up north” feeling to the home. Marc and Sharon both enjoy the spontaneity their new home provides – allowing them to hike, hunt or just enjoy nature whenever they choose.
AS SUCCESSFUL BUSINESS OWNERS IN SOUTHEAST MICHIGAN, MARC AND SHARON GEMELLARO ARE ACCUSTOMED TO WORKING WITH BANKS AND OTHER FINANCIAL INSTITUTIONS, BUT WHEN THEY WANTED TO OBTAIN FINANCING FOR VACANT LAND THEY HIT A SNAG. “I had no idea it was so difficult to find financing for vacant land with reasonable terms,” says Marc Gemellaro, president and principal of GSI, a security and networking firm. “Fortunately we found GreenStone through an internet search.” The Gemellaros recently built their once-in-alifetime dream home on 70 acres in northern Oakland County. The three-year endeavor started with locating and purchasing the land. “We spent several months looking for the right property,” Sharon says. “When we drove up to this property it was unkept with scrub trees and overgrown brush along the road and I said, ‘no way.’ But as we walked deeper into the property, a beautiful meadow opened up and we knew it was the right place.”
process and eventually to the mortgage and purchasing additional land. “We have dealt with a number of banks over the years, both personally and with our business, and GreenStone by far has been the easiest to work with. We wish we could do all of our mortgages with GreenStone!” The Gemellaros found the relationship-driven service and individual attention GreenStone has provided farmers for decades a refreshing change from the lending environment they typically experience. “Our mortgage was a bit more complicated because we are business owners and have more documentation than a straight W-2, and that was not a problem. Sandy understood how being business owners affected our income,” Marc says. “When we went to our first closing, GreenStone was prepared a couple days early, while others still were not ready at the time of closing.” Today, their home sits on the edge of the meadow, flanked by a woodlot of 100-year-old trees. The Gemellaros designed their home to reflect
“I can take a walk through the woods and sit and enjoy the beauty around me whenever I want,” Sharon says. Although Marc and Sharon hired builders and trade professionals, they were intricately involved in the building and decorating process, making daily visits during the 18-month construction phase. Since the original land purchase, they have acquired another parcel giving them over 170 acres of land to hunt on, manage and enjoy. An avid hunter, Marc plants food plots on the property to attract wildlife. Over the past year, he has upgraded his equipment to be able to manage more of the field work on his own, including growing sweet corn this year. Sharon, who is also a hunter, enjoys the time together working on the land and taking care of what they have. “We feel a strong sense of responsibility to take care of this land,” Marc says. “I look out and see trees that have been here for hundreds of years. We feel very fortunate to be taking care of this land.” ■
Sharon, who grew up on a small farm in the ‘thumb’ of Michigan, instantly fell in love with the property. After finding the land, they reached out to several local banks for financing and soon realized it was not as seamless as they had hoped. After connecting with Sandy Arnold from the GreenStone branch in Lapeer to purchase the land, the Gemellaros continued working with Sandy and GreenStone through the construction ➡ Right: Nestled among trees, a pond and a meadow, the family home offers an “up north feel” in Oakland County.
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5 HELPFUL TIPS FOR SPRING GARDENING WHETHER YOU ARE AN EXPERIENCED GARDENER OR THIS SPRING WILL BE THE FIRST YEAR GETTING YOUR HANDS DIRTY, IT IS IMPORTANT TO KEEP THESE TIPS IN MIND WHEN YOU START. Get Started Early Take time to plan your garden before you actually start gardening. Most vegetable plants need to be grown indoors for approximately 6-8 weeks before the first frost. This allows them to be easily replanted into the ground when warmer weather arrives and temperatures no longer drop at night. If you are starting from seed rather than buying the adolescent plant, be sure to read the back of seed packages to determine how many weeks to start the seedlings before moving them outdoors. Toilet Paper Planters While it’s convenient for replanting, the cost of having a pot for each seed planted can add up quickly. One way to cut costs and efficiently replant your seedlings is by using empty toilet paper rolls as the seedling container. Rather than digging a hole, removing the plant and replanting it; you simply dig a hole and push the contents of the plant out through the bottom of the roll. Understand Your Plants If you are taking the time to plant and water seeds, it is important to take the time to understand what they will look like when they start growing. Knowing the difference between corn at
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two weeks old and zebra grass is very important and could prevent time being wasted watering a weed. By having a general idea of what the plant will look like, this will also help you differentiate the growth at weeding time. Location is Crucial Knowing whether or not your plants will require full sun, partial sun or shade is an important factor in the health of the plant. When purchasing seeds for your garden, ask about the amount of sun that plant will require and keep the seed packages for reference. The location of your plants and how deep down they are planted are both critical things to benefit a bountiful harvest. Stay Ahead of the Weeds While pulling weeds isn’t anybody’s favorite hobby, weeding regularly is key to ensuring your plants get the nutrition and space they need to grow. Keeping a garden weed-free is a daunting, but achievable task when it is maintained daily. Rather than allowing the weeds to take over, weed thoroughly a few times a week, making sure to remove the entire root. ■ Source: https://www. miraclegro.com/en-us/library/ gardening-basics/10-topgardening-tips-beginners
SPRING INTO A HEALTHIER YOU SPRING IS A SEASON OF GROWTH AND CHANGE. FLOWERS ARE STARTING TO BLOOM, CROPS ARE BEING PLANTED AND GRASS IS GROWING. IT CAN ALSO BE A TIME FOR YOU TO CHANGE YOUR HABITS AND ROUTINES. LISTED BELOW ARE THREE SIMPLE TIPS TO CHANGE YOUR LIFESTYLE WITH GREAT HEALTH BENEFITS. Unplugging from Technology As time passes, our use of technology is increasing. An estimated three out of every four people in the United States own a smartphone. Acknowledging loved ones by staying off of technology to be present in the moment is often overlooked. Technology can often consume our day as many careers involve computers, phones, tablets or other devices. Instead of turning on the television or computer, sit down and talk to a loved one, or even read a book. Stepping Outside and Enjoying the Sun After a long winter in the Midwest, everyone wants to enjoy some warm weather! It is important to get outside, enjoy nature and the sunlight. The sun produces Vitamin D which is essential to the human body because it can prevent heart disease and certain types of cancers.
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Most humans are also deficient in Vitamin D, so enjoying the sun for at least ten minutes a day can be very beneficial to your health. Consistent Sleep Routine The average human being should be sleeping between seven and nine hours a day. This helps with muscle recovery, brain function, and weight loss, because when you sleep, melatonin levels typically rise while cortisol falls. A way to consistently get the optimal amount of sleep is to set an alarm for an hour before you want to be asleep. At this time, turn off your phone to avoid notifications and do not use technology while you prepare for bed. By doing this it will allow your brain and body to relax for sleep. ■ Source: https://www.nbcnews.com/better/health/8-ways-spring-cleanyour-health-routine-ncna859021
COUNTRY LIVING – OPEN FIELDS BLOG BRIEF
GreenStone publishes regular updates on our Open Fields blog. Check out some of the posts you may have missed at www.greenstonefcs.com. Rural Health Initiative For many farmers, taking the time to schedule a trip to the doctor’s office is far from their top priority. With this in mind, in 2004 the Rural Health Initiative (RHI) of Northeast Wisconsin started the Kitchen Wellness movement to bridge the gap between a healthy harvest and a healthy lifestyle. GreenStone participates at 2019 FFA Michigan State Convention GreenStone had many proud parents and staff engaged last week at the Michigan
State FFA Convention. The convention hosted thousands of students from all over Michigan at Michigan State University. Ladies’ Day Out Celebration GreenStone’s promise to support rural communities and agriculture goes far beyond being a dependable financial institution. Fueled by a goal of providing resources to show appreciation of our members and their dedication to agriculture, GreenStone proudly hosts a one-of-a-kind Ladies’ Day Out event each
year in Green Bay, Wisconsin. Barn Believers Community Fund Project Symbolizing strength in difficult times, generations of hard work and a fierce love of the land, American barns represent the history of the agriculture industry better than anything else. These barns, much like the farmers who tirelessly provide for local communities, deserve a standing ovation. Unfortunately, many of these beautiful barns aren’t being applauded, but rather abandoned. ■
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Sweet Maple Barbecue Chicken Kabobs It’s that time of year: the sweet season of maple syrup, and with it, many delicious recipes. Maple syrup is used for much more than drizzling across breakfast pancakes or waffles. It can be a staple ingredient in recipes for lunch, dinner or dessert. Ingredients: • 2 lbs. boneless chicken tenders
• 1 tablespoon Worcestershire sauce
• 1 packed cup brown Sugar
• 2 teaspoons ground mustard
• 1 cup ketchup
• 2 teaspoons Paprika
• 1/4 cup red wine vinegar
• 1-1/2 teaspoons kosher salt
• 1/4 cup water
• 1 teaspoon black pepper
• ¼ cup pure maple syrup
• .5 lb. bag of Skewers
Instructions: Mix brown sugar, ketchup, red wine vinegar, water, pure maple syrup Worcestershire sauce, ground mustard, paprika, kosher salt and pepper in a large bowl. Place chicken tenders in the marinade, cover and refrigerate. For best results, let the chicken marinate for at least 2-4 hours or overnight. After the chicken has marinated, carefully lace each individual chicken tender through the skewer, starting with the thicker end of the tender. Once each ender has been threaded, drizzle the remaining marinade over the chicken tender kabobs. Heat grill to medium heat, place chicken on grill and cover. Cook for approximately 3 minutes, then turn over the kabob and cook another 3 minutes. Continue to rotate and check the chicken; the chicken will be done if the juices are clear and the center of thickest part is 170°F. The chicken should take around 8-10 minutes to cook, depending on size of chicken. Remove from grill and enjoy. Great to serve with grilled corn on the cob, cornbread and a glass of milk. ■
i Did you know: • There are 150+ varieties of maple trees, Silver and Red Maples are most common • Tapping trees for sap does not affect the health of trees • Oldest Maple tree is estimated to be over 400 years old • The U.S produces over 4 million gallons of maple syrup annually • 40 gallons of sap are required to make 1 gallon of syrup ■ Source: https://www.michiganmaple.org
Commodity Cuisine...
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i FRAUDULENT MOBILE APPLICATIONS
According to the RSA’s First Quarter 2018 fraud report (Bleau, 2018), fraudulent transactions originating from mobile apps have increased over 600 percent during the past three years – from 5 percent in 2015 to 39 percent today. Mobile apps have become the common way we communicate and interact with many of the financial companies customers use daily. This behavior has not gone unnoticed by cyber-criminals looking to take advantage of the unsuspecting users, which is why they have started to create fraudulent mobile apps. These fraudulent mobile apps mimic the look and feel of the legitimate apps, but often include hidden features that could expose your personal information, including user names and passwords to these criminal organizations. Here are some tips you can use to keep your device and information protected when installing applications. • Only Install Applications from Official App Stores – Limit your application selection to only those listed on the Apple App Store or the Google Play Store. While it is still possible for these fraudulent applications to make it on the legitimate store fronts, those services do have rules and guidelines in place to help keep fraudulent apps out.
• Review Application Permissions – When installing applications, regardless where you find them, always review the permissions the application is requesting on your device. This might be access to your contact list, location or camera based on the application – only allow access to what you are comfortable with. These settings can be reviewed at any time from your device settings. • Never Jailbreak or Root Your Device – Jailbreaking, or rooting, means you have removed software restrictions imposed by Apple and Android. While some may feel they are limiting what you can do, many of the restrictions are there to enhance security on your device. While we will never be able to completely stop criminals from getting their applications listed on official app stores, these tips will go a long way in helping you avoid installing a fraudulent application on to your mobile device. References: Bleau, H. (2018, May 23). RSA Report: Mobile App Fraud Transactions Increased Over 600 Percent in Three Years. Retrieved from RSA: https://www.rsa.com/en-us/blog/2018-05/rsafraud-report-mobile-app-fraud-transactions-increased-over-600percent-in-three-years ■
...Tech Tip
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LEARN
DRP: NEW OPPORTUNITIES FOR REVENUE PROTECTION ➡ Below: Using the DRP program gives Cory Rohan of Bear Creek, Wisconisn, another tool to help protect his revenue.
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THE RECENT LAUNCH OF THE DAIRY REVENUE PROTECTION (DRP) PROGRAM IS GIVING DAIRY FARMERS NEW OPPORTUNITIES TO PROVIDE A SAFETY NET FOR THEIR OPERATIONS. THE PROGRAM, OFFERED THROUGH CROP INSURANCE PROVIDERS AND FACILITATED THROUGH THE RMA, IS GAINING POPULARITY AS FARMERS LOOK FOR WAYS TO PROTECT A POSITIVE MARGIN.
“ The DRP offers producers flexibility in determining the level of coverage they need along with the customization to tailor it to component pricing or utilization (Class III or IV). “Having a way to customize the plan for each producer gives the DRP potential to be a powerful tool, but it also requires farmers to be strategic in how they use it, incorporating it with other marketing plans and overall farm management,” says Robert Netrefa, crop insurance specialist with GreenStone Farm Credit Services. Robert has been working with dairy farmers throughout northeast Wisconsin to help them capture the opportunities available through DRP. Helping the farmers understand how the program can give a new level of protection to their margins is part of the education process.
Having a way to customize the plan for each producer gives the DRP potential to be a powerful tool, but it also requires farmers to be strategic in how they use it, incorporating it with other marketing plans and overall farm management.
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Cory says. “We look at all our costs like feed, vet costs and labor on a per cow basis so we can compare our costs to other farms in our area.” The Rohans milk 750 cows on their family dairy farm in Bear Creek, Wisconsin. Cory is the third generation to manage the farm. Since returning to the farm after college, he and his father have worked to streamline operations and take a critical look at all aspects of the farm to operate as efficiently as possible. Working with a financial consultant provides them insight into how they compare to neighboring farms.
“We want farmers to use the DRP to protect their profitability, not necessarily hit the highest point in the market,” Robert says. “This tool is designed as an insurance policy – protection of the farm’s revenue – and as such, like most insurance policies we hope we can capture the maximum in the market and not rely on the insurance. But if the market drops, we want farmers to have a floor under their revenue.”
“We want to know why things are they way they are,” Cory says. “If our feed costs are higher, or we have higher vet costs, we look into it to see where we can make changes and improve.”
For GreenStone member Cory Rohan, using the DRP to protect his margins gives him an added level of confidence when determining his financial plan for the year. Cory, and his father, Tom, work with an agricultural business consulting team to develop a yearly budget and cost projections. The detailed budget the Rohans create each year made enrolling in the DRP program an easy decision.
“We don’t buy insurance on our barns hoping they will burn down,” Cory says. “We look at DRP the same way. We did not look to lock in the highest prices, but rather to cover our cost of production. We hope market prices are higher and we do not collect any money from DRP.”
“We work to make our budgets as accurate as possible, drilling down to the greatest detail we can,”
Having an accurate cost of production gives Cory the information he needs to make informed decisions when enrolling in DRP, enabling him to protect a margin. “Knowing our breakeven cost of production, I was able to select the levels throughout 2019 that protect our margins,” Cory says. “Without knowing our costs, we wouldn’t know the levels to cover.” Like other insurance policies he buys, Cory hopes he does not have to make a claim on the DRP, but he has the assurance that if markets go lower, he is covered.
The Rohans, like most farmers enrolled in DRP, are incorporating the program into their overall farm management plan. Having accurate records, along with the proper insurance programs, can provide an added level of certainty in uncertain times. “It is a pleasure to work with Tom and Cory,” says Dan Gitter, GreenStone VP of Commercial Lending in Little Chute, Wisconsin. “They do an excellent job of providing us with good information and have a deep understanding of their current and projected financial position.” For more information on DRP, contact your local GreenStone crop insurance specialist or visit www.greenstonefcs.com. ■
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CROP INSURANCE NEWS:
NOW IS THE TIME TO SIGN UP FOR HAIL INSURANCE! While it may seem as if storms capable of producing hail are rare in our area, it seems these storms are becoming far more commonplace than in the past, making the need for hail insurance more important.
• Hail coverage is available on almost any crop; even if you do not have a Federal crop insurance option, it can generally be covered for hail.
Hail insurance is a separate policy from your multi-peril crop insurance coverage. Federal crop insurance covers hail damage as it relates to yield reduction, but producers can also purchase separate hail coverage for their crops from the same companies offering federal crop insurance. As an added bonus, hail policies can provide coverage for fire, lightning, vandalism/malicious mischief and transit to the first place of storage.
• A customer is able to carry a Federal MPCI policy as well as a hail policy, and collect on both in the event of a loss.
Hail insurance is based on the percent of damage received at a particular growth stage, which allows insurance companies to perform adjustments and pay indemnities during a growing season, without having to wait until harvest. Rates and coverage vary by crop and county. Keep in mind, hail insurance must be purchased before damage occurs. Below are some other important items of note regarding hail coverage. • Most hail insurance covers other perils above and beyond hail damage. Beyond hail, most policies also cover fire, vandalism and malicious mischief, transit to the first point of storage, and stored grain coverage if you happen to have a bin(s) on the farm.
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• Hail coverage is based on a dollar amount of coverage per acre, with premium generally quoted per $100 of coverage. For example, if someone wanted to cover their corn at $700 per acre and the premium was 60 cents per $100 of coverage, their premium for corn would be $4.20 per acre. • One benefit to hail insurance over MPCI is you can insure up to the total expected value of the crop, whereas on MPCI you are limited to 85 percent. • Hail coverage generally has many different endorsements available, including quality endorsements on crops intended for fresh market, canning reject endorsements, etc. To learn more on how a hail policy works or what options are available and covered with a hail policy, contact your GreenStone crop insurance specialist to review your options. ■
IMPORTANT– CLAIMS & APPRAISALS No matter what you do during the growing season, sometimes Mother Nature just will not cooperate, and you are anticipating that your yields may fall below your guarantee. Obviously, this is not the situation you would like to be in, but it is the reason you purchased crop insurance. If you do find yourself in a claims situation, there are some important things to remember that can help the process go more smoothly. Insurance coverage generally begins at time of application or time of planting, whichever is later. The end of the insurance period is the earlier of total destruction of the crop, final harvest of the crop, abandonment of the crop, or the end of the insurance period (October 31 for wheat). It is the insured’s responsibility to notify the insurance company within 72 hours of the initial discovery of the damage or production loss, but no later than 15 days after the end of the insurance period, even if the crop has not been harvested. If you have a revenue
ACREAGE REPORTS The earlier we get started on reporting your planted crop acres, the earlier we can process your reports and return for your review. It is the customer’s responsibility to report the crop that was planted in each section, the planting date and your percent share of that crop. Reporting your crop accurately and double checking everything on the Schedule of Insurance is very important. Corrections or changes cannot be made after the July 15 reporting deadline. You do not need to report to FSA before reporting your planted acres to your crop insurance specialist. ■
protection policy and have a claim based on strictly price, the insurance company must be notified within 45 days of the harvest price announcement for the crop. The RMA is enforcing these rules and will decline late filed claim requests, they may also request
repayment from an insured for paid claims that were improperly filed. Remembering these key points will help avoid problems with your claim. As always, if you have questions, please contact your crop insurance specialist to assist you. ■
EARLY/FINAL PLANT DATES
2019 FALL WHEAT & FORAGE CLAIMS
Early and final plant dates vary by crop, county and state. Coverage levels can be reduced if a crop is planted too early or too late. Please check with your GreenStone crop insurance specialist or actuarial documents for specific details and dates for your county if you are unsure about which dates apply to your policy. ■
Appraisals are required when a customer plans to do something with the crop other than harvest in the normal manner. If you do not plan to take your wheat/forage crop to harvest, we must appraise the acres prior to destruction. ■
FIRST CROP/SECOND CROP
Crop Insurance Alert postcards will be mailed out on an “as needed” basis to customers. The goal is to communicate any vital information that we receive and feel necessary to pass along to you. Please pay attention to its message to ensure any required action on your part can be completed on a timely basis. ■
If you are planning on possibly removing a first crop to plant a second, make sure you contact your crop insurance specialist before doing so. You could be eligible for a claim, but you may forfeit that eligibility if you act before contacting your agent to discuss your options! ■ ORGANIC CROPS As a reminder, RMA now requires all insured organic certified producers to provide a copy of their organic crop plan and organic certificate to their agent before the acreage reporting date. ■
CROP INSURANCE ALERTS!
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ENTERPRISE UNIT STRUCTURE The added subsidy on the enterprise unit structure makes it an affordable option for many producers. The downside is, if you do not end up planting the required acreage, your policy can revert back to a basic unit structure, and your premium could increase substantially. There are two requirements to qualify for enterprise units: You must farm in two or more separate sections. AND At least 20 acres, or 20 percent of your individual crop acreage, whichever is less, must be planted in that second section. Adverse spring weather has the potential to cause prevented planting which could take some producers out of enterprise unit eligibility. Make sure to contact your crop insurance specialist if you anticipate any issues with meeting the enterprise unit requirements. ■
PREVENTED PLANT OR REPLANT RULES HAVE CHANGED
Crop Insurance Calendar... APRIL
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MAY • Production Reporting Deadline for all 2018 Spring Crops
JULY
If weather conditions prevent you from planting or you need to replant a crop, you may qualify for a claim. File a claim with your specialist before replanting. DO NOT replant until you have received approval to do so or you may not receive an indemnity. If you have a prevent plant situation,
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1
• Forage & Fall Wheat Premiums Billing Date
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• Spring 2019 Acreage Reports Due
a claim must be filed within 72 hours after the end of the late planting period, which varies by crop. (There is a minimum requirement of 20 percent of the unit or 20 acres for both replant and prevent plant claims, whichever is less.) Some important changes were made for the
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• Oat Acreage Report Due
➡ Above: Using risk management tools like Whole Farm, isn’t for just the current year, for AUGUST Bruce Klamer, it’s for the future generations who may someday own theBilling farm.Date • Spring Premium ➡ Top of page: For Bruce Klamer (right), updating his yearly records with crop insurance specialist, Kylee Zdunic-Rasch (left) is easy and quick to do because of the close working relationship between the two.
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current crop year in regards to both Replant and Prevent Plant rules. Depending on the timing of the replant period, weather and field conditions, you could be required to replant. Please contact your crop insurance specialist for the most current rules and guidelines. ■
2. Start looking early and apply! Applying early can show both initiative and interest. Using job searching websites such as Glassdoor, Indeed, or Handshake can aide you when you are searching for your dream internship. 3. Engage in on-campus employer visits Meeting with employers on campus can benefit you in learning from an employee of the company. Understanding what the internship is about, what the company has to offer you as an intern and if there are possibilities of landing a full-time job after you graduate is also important. 4. Build a resume that accurately and impressively reflects your experience and skills There are many resume building workshops at your school and nearby outside organizations. These workshops can help enhance your resume by having professionals critique it. Resumes should include up to date contact information, work experience, volunteer experience and skills. 5. Be resourceful when networking and use social media to your advantage There are two different ways of networking today - face-to-face and online.
TOP FIVE TIPS FOR LANDING YOUR DREAM INTERNSHIP
Face-to-face networking can be done by going to career fairs, in classes and at networking events. Ask someone for their business card or exchange business cards with them as an ice breaker.
As spring semester is underway students are looking forward to summer internships or career opportunities. Jonna Meyers, HR Business Partner at GreenStone, gives her top five tips to college students looking to land their dream internship. 1. Determine what you desire to receive from an internship The first of five steps is looking into yourself. What do you want to experience from an internship? Is there a certain niche area you want to work within your industry? Developing a purpose may take a lifetime but it can start now while you are in college. “I have a lot of interest in and respect for agriculture and all of the processes involved in the industry. GreenStone was the right choice for me because it combines my interests with my educational focus,” Jennifer Pawlowski, tax and accounting intern.
Online networking is mostly done by using LinkedIn. LinkedIn can serve as your online resume and can be used to meet and connect with individuals using groups or following hashtags. “I chose GreenStone because I have worked specifically in the dairy industry the past two years and I am looking to diversify my experiences. I also talked to past interns who enjoyed their internships and suggested I apply because it pertains to my degree. I also enjoy working with numbers and analytics,” Cameron Cook, credit intern. Find out more about the GreenStone internships and careers at jobs.greenstonefcs.com ■
...Tech Tip Partners — Spring 2019
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Is your farm accounting system helping you weather the storm? By Dennis Rudat Reprinted from Farm News Media “With the markets we’re in right now, you need to be a player — not a victim. If time is a limiting factor, focus on what you do well and focus on what you can control,” Chad Zagar of GreenStone Farm Credit Services. Assembling a financial team may help to more aggressively manage your farm’s finances. Assuming most farmers have already taken the obvious steps to reduce operating costs as many “experts” are quick to suggest, it’s also safe to assume many of those producers are now asking, “What else can be done to at least develop a break-even business plan for 2019?” While the question can be daunting, Chad Zagar, vice president and managing director of financial services 41
Spring 2019 — Partners
look forward to making sure you don’t make the same mistake twice.” at GreenStone Farm Credit Services, said the process of finding the right answer often hinges on the farm’s commitment to following a systematic accounting process. During a presentation to a standingroom-only crowd at the Michigan Farm Bureau’s Growing Together conference this past weekend, Zagar said the importance of placing a high priority on farm financial accounting, particularly in today’s farm economy. “Accounting is how you keep score,” he said. “Consistently making the right business decisions is very difficult without having accurate financial records and reports. It helps you to focus on the things you can control, while also giving you the ability to
While many farmers routinely make business decisions based on gut instinct alone, Zagar suggested that a viable accounting system — sometimes mixed with outside expertise — can aid tremendously in answering major managerial questions such as, “Are you farming ground you shouldn’t be?” Financial records — including the balance sheet, a profit-and-loss statement and the statement of cash flows, along with projections for the coming season — are key for producers to clearly understand their operation’s financial position, including costs and profitability, Zagar said. Citing time availability and/or disdain for book-keeping, Zagar added that more producers are finding an alternative through outside financial support
Tax Calendar... APRIL • Individuals file a 2018 income tax 15
return (Form 1040) and pay any tax due. If not able to file, file Form 4868 to request an automatic 6-month extension. If tax is due, it must be paid with the Form 4868. • F irst quarter estimate is due for 2019 for individuals that pay estimated taxes. •C orporations file a 2018 calendar year tax return (Form 1120) and pay any tax due. If not able to file, file Form 7004 to request an automatic 6-month extension. • C orporations deposit the first installment of estimated income tax for 2019.
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• Non-farm employers file Form 941 for the first quarter to report Social Security, Medicare, and withholding.
JUNE
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• S econd quarter estimate is due for 2019 for individuals that pay estimated taxes. • C orporations deposit the second installment of estimated income tax for 2019.
JULY services to ensure the accounting job gets done correctly and consistently, while also offering management insight in annual business planning. “With the markets we’re in right now, you need to be a player — not a victim,” Zagar told producers, suggesting a financial team could help them more aggressively manage the farm’s finances. “If time is a limiting factor, focus on what you do well and focus on what you can control.”
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accrual-based accounting system. While cash-based accounting may help the operation pay the monthly bills and provide the necessary information for annual tax return preparation, accrualbased accounting provides the managerial insight needed to answer what-if scenarios and legitimate enterprise analysis.
Production output, for example, is something most producers do — and do well. On the “things you can control” list, operating costs, family living expenses and eliminating non-productive assets — including equipment and property — should all be on the table for discussion to lower break-even costs, Zagar advised.
In answering the what-if questions, Zagar said producers should create a best-case, worst-case and somewhere-in-between scenario, and the impact to break-even costs in each of the three scenarios. Doing so will help to have a contingency plan in place in the event of a major weatherrelated crop loss or a dramatic shift in market and asset values.
An outside financial services team can also address another short-fall on many farm operations — the implementation of an
Comparative balance sheets are done at the same time on an annual basis and can also help pinpoint areas of concern, according
•N on-farm employers file Form 941 for the second quarter to report Social Security, Medicare, and withholding. • Form 5500 is due for all employers that maintain an employee benefit plan, such as a pension plan. • If not able to file, file Form 5588 to request an automatic 2.5 month extension. to Zagar, by looking at assets, liabilities and debt-to-asset trends and making adjustments before it’s too late. And in a worst-case scenario, Zagar said high-quality financial records can demonstrate to lenders and suppliers the steps you are taking to maximize your returns and remain profitable. “Being able to clearly explain your costs per unit of production and how you are making informed choices to minimize them can help attract the capital you need to fund your operation,” he said. ■ Partners — Spring 2019
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3515 West Road East Lansing, MI 48823
Spring feature highlight... Marc and Sharon Gemellaro recently built their once-in-a-lifetime dream home on 70 acres in northern Oakland County. The three-year endeavor started with locating and purchasing the land. Today, their home sits on the edge of the meadow, flanked by a woodlot of 100-year-old trees. The Gemellaros designed their home to reflect the beauty around them while adding modern amenities to make their home a daily retreat. Read more on page 29.