Partners Summer 21 by GreenStone Farm Credit Services

Promoting the business success of our customers and the rural community

Summer 2021

GreenStone FCS

+ FCS LifeExpress + Scholarships + Tech Tip

A C E N T U R Y GREENSTONE STORY: Meeting Your Needs Anywhere and Everywhere

GUEST COLUMN: Suggestions for Next Gens OF PROGRESS MARKET OUTLOOK: Extending the Bull Market

COMMEMORATING FARM CREDIT

YBSF Feature

Women From Hobby in Ag to Home

YBSF SPOTLIGHT: NATURE’S VIEW NURSERY pg. 5

SUMMER 21 5 YBSF Feature. Over the years, the Helsen family has turned their hobby into a full-time business. “My husband started it, and now I manage it,” Karen Helsen said of Nature’s View Nursery in Coopersville, Michigan.

IN BRANCH

ON LINE ON FA

23 GreenStone Story. As the preferences and lifestyles of our customers have changed, so has our daily workflow and service options.

29 Country Living Feature. Ryan Hauser has experience as a do-it-yourself worker. As a side hobby, he flipped four houses to generate enough profit to buy vacant land in Monroe, Michigan.

39 Crop Insurance Feature. With thousands of options available for crop insurance, having a provider who understands your farm and the variety of coverage options available to you is invaluable.

41 Tax Feature. When Jeff Alexander took over his dad’s farm in 1993, he continued the relationship his family started long ago with GreenStone.

3 CEO Comments. President and CEO Dave Armstrong shares a menu of summer updates. 11 Guest Column. The next gen believes they’re stepping up. How can next gens, respectfully, prove they’re ready? Here are some ideas. 13 Market Outlook. Weather concerns, combined with continued strong export demand, have helped to extend the grain market bull run that began in late 2020. 17 FCS LifeExpress. Life and disability insurance is a critical risk management component to consider with every farm operation. Evaluating the type of insurance, its uses, and the correct amount can mean the difference between success and foreclosure. 25 Directors' Perspective. Four Directors share their perspective of our online enhancements and service options they appreciate. 27 Legislative Matters. Challenging times abound and the challenges in our agriculture industry seem to never go away. Maintaining engagement in a productive way is necessary.

28 PAC Progress. Political Action Committees (PACs) often take center stage in legislative outreach, as the purpose is clear and participation is relatively easy.

36 Guest Column. Jimmy Gretzinger, Host of Michigan Out-of-Doors TV, shares his top 5 Michigan destinations that, just maybe, you haven’t ever been to. 43 Tech Tip – Ransomware Affects You Too. There has been a lot of news coverage lately about ransomware and the global impact it has had on our supply chain industries. But it affects us all. 45 Generational Transfer Tax Law Changes. Producers should pay close attention to proposed changes in tax law to understand how their farming operations may be impacted in the future. 8 Agriculture Blog Brief 9 YBSF Resources 15 Member News 16 Pause for Applause 18 GreenStone Scholarships 19 Summer Interns 20 Calendar of Events 21 Behind the Scenes

39 Tick Prevention. We have some tips to help prevent tick bites and ways you can keep them out of your yard.

How often are we picking between “this or that”? There’s a constant decision to be made every step of the day. Some are fun and simple, others far more complex. My team had a little fun with this the other day with a quick round of the game. My question happened to be “Las Vegas or Smokey Mountains?” Coincidently, I have a family camping trip planned to the Smokey's this month…you can guess my answer! But alas, not all options are that simple, nor fun, to make. In this issue of Partners I hope we’ve provided you insight and stories around many of the options available to assist you through our tools and team of experts. Our hope is to help make even the most difficult decisions a little easier with resources, tools and knowledge to support you. This starts with options to serve you, and we have many! Take a look at page 23 for the GreenStone Story. Each of you have a different expectation on what customer service should look like – some want in person, others expect online solutions – whether you choose this or that, or both, we’re continuing to expand our options to allow you to get it the way you most prefer. Our customer stories start with Karen Helsen who made a choice to manage her 40-acre nursery full time, leaving behind her career at the hospital. Read about all the hats she gladly wears each day on page 5. Though my own experience was a decade ago, I remember vividly the many “this or that’s” that came with building our home. Page 29 shares the journey for Ryan Hauser who did it himself. Sometimes the choice comes out of need, other times from preference. When he took over his family farm, Jeff Alexander chose to partner with GreenStone for his tax planning and financing needs for both reasons. Get his story on page 41. As you consider your next “this or that,” I hope we’re able to be a part of the solution that allows you to enjoy the decisions you’re making like so many of our customers have. Happy reading (and hiking) this summer!

22 Candid Comments – Melissa 32 Country Living Blog Brief 34 Commodity Cuisine... French Baguettes

37 Crop Insurance News 33 Benefits of Drinking Milk. Milk provides several health benefits not only to younger children, but also to adults.

Publisher’s Note:

38 Crop Insurance Calendar 42 Tax Calendar

This newsletter is published quarterly for the customers of GreenStone Farm Credit Services. Editorial Cassie Bowman Amber Echlin Camryn Lewis

Melissa Rogers Alaina Schrauben Carla Wardin

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

Art & Design Hailey Andres William Eva Annah Horak

CEO Comments:

Hello Summer! The 2021 planting season got off to a fast start with widely fluctuating temperatures and little rainfall across much of our association’s territory…but that changed recently! Stands of most commodities are reported to be in decent condition (although apples, cherries, and grapes were significantly impacted from freezing temperatures in May) with corn in Michigan rated 86% good to fair and Wisconsin at 78%, as I write this. Soybean plantings are running ahead of the five-year average in both states with similar conditions for those that have emerged with 81% of the stand in Wisconsin at good to fair versus 85% in Michigan.

Summer 2021 — Partners

The higher percentage of good to excellent ratings in Wisconsin reflects the difference in rainfall each state had received. For awhile, things looked grim with a larger proportion of Michigan’s crop land in moderate to severe drought as of the second week of June. Now, as of the printing of this publication, rainfall appears to be in abundant supply over the next several days. Thinking about the adage that “a dry year will scare you to death, but in a wet year you will starve to death,” I’m hopeful things balance out and no experiences either. These conditions serve as a good reminder for our members that it’s not too early to start thinking about next year’s crop insurance coverage. GreenStone offers several different crop insurance policies that can be purchased yet this year for 2022. Customized Service Options By now most of the Covid pandemic restrictions have been lifted in both Michigan and Wisconsin. Warmer weather coupled with many people being vaccinated and/or developing natural immunity to the virus through exposure has allowed many of us to return to the greatest level of pre-pandemic “normalcy” we have enjoyed since March of 2020. Our staff have enjoyed seeing the friendly faces of our customers walking into the branches, and customers and staff alike are enjoying the opportunity to “catch up” with each other face to face. Thanks to the many service options we have available to customers, our staff members are connecting with customers the way they want to interact, meaning customer visits at the farm or home, via the phone or video, and in the office. With even greater flexibility, don’t be surprised if you stop into a branch and there are a limited number of team members there on any given day. So, I encourage you to make an appointment with the person you’re looking to meet with before driving to the branch. Paycheck Protection Program We are finally on the “downhill side” of processing forgiveness applications on the 1,493 Small Business Association (SBA) Paycheck Protection Program (PPP) loans GreenStone originated for eligible members during 2020. Just like the chaotic rollout and process associated with originating these new loans over a year ago, the forgiveness phase has been slow with conflicting information and limited communication from the SBA, which seems to have resulted in some slow turnaround times in processing many of the applications we submitted on behalf of our customers. With that said, we have submitted 93% of these 2020 loans to SBA for forgiveness and urge any customers who have not sent in their forgiveness application to do so just as soon as possible. As we wrap up the forgiveness phase for the 2020 PPP loans, we are now beginning to process forgiveness applications for PPP loans originated in 2021. GreenStone wrote more than 3,300 PPP loans under the 2021 program for just over $85 million. The good news is many of these loans were approved through a much more streamlined process, and we're hopeful that carries into the forgiveness process as well. Altogether, through both stimulus programs in 2020 and 2021, GreenStone provided 4,800 PPP loans to its customers for just over $230 million, which represented 10% of the total volume and number of loans written by all Farm Credit System institutions across the country.

possible tax law changes and the 2023 Farm Bill is creating anxiety among many of our members about future profitability. Outside of farming, sky-high residential home prices driven by a lack of housing inventory, record lumber prices, and a shortage of skilled labor are sending many potential home buyers to the sidelines hoping that prices will become more affordable in the future. While loan growth has slowed from the record setting pace in 2020, I’m pleased to report the quality of our loan portfolio remains strong with very limited loan volume exhibiting significant credit weaknesses at just under 3% of the $11 billion portfolio, and loans with delinquencies of greater than 30 days late are at a record setting low pace of only .19% (yes, you read that right!). Earnings year-to-date are also ahead of budget and slightly better than last year. Of course, we have about half of 2021 to go, but our current view of the horizon indicates overall strong earnings for the year and will allow us to continue the trend of solid Patronage payments to our members. Given all of the challenges GreenStone and you, our members, have faced over the past year and a half, it’s nice to start to settle back into some sense of normalcy again, even if in this industry normal means constant volatility and change! Governance Finally, I would like to recognize Hank Choate for his eight years of service as a Director on the GreenStone board representing Region 3. Hank has been a very active and engaged board member who always has had his fellow stockholders' best interests at heart. He served on our Legislative and Public Policy Committee for much of his tenure and was an effective voice at the state and federal level for both the Farm Credit System and agriculture industry at large. He was never afraid to outwardly share his beliefs and thoughts even if he knew his view may be in the minority. Hank also practiced one of GreenStone’s Core Four Values that calls on us to “Get Involved” by serving on at least a half dozen boards at the state and local level to give back to his community and the industry that he loves so much. GreenStone is truly blessed to have loyal, committed, and thoughtful members like Hank who are willing to give of their time to help others. Please join me in thanking Hank for his years of service to GreenStone and wishing him the best in his future endeavors. Hank will be replaced by Michael Feight from Tecumseh, MI in Lenawee County. Michael has been a member of GreenStone and one of its predecessor associations for 36 years. He operates a partnership with his father and brother which includes 2500 acres of corn, soybeans, and wheat along with 75 acres of carrots for Campbell’s Soup. Please join me in welcoming Michael to the GreenStone Board of Directors. I will close by thanking you for your business and working with us to serve you better through some very rough times over the past 18 plus, months. Together we truly are better! Feel free to reach out to me if I can ever be of assistance. Have a safe and productive summer!

Cooperative Financial Strength Loan growth year-to-date is about half of what it was last year. While interest rates remain historically low, many of our full-time farm members appear to be cautious about capital spending even though we are experiencing strong commodity prices for many crops. And, while protein commodity prices are also up, the increase in feed costs will challenge margins for those buying most of their feed supply over at least the next 12 to 18 months. This, coupled with uncertainly over

Dave Armstrong

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

Partners — Summer 2021

Summer 2021 — Partners

GROW ➡K aren Helsen and her husband Greg own Nature’s View Nursery in Coopersville, Michigan.

Young, Beginning, and Small Farmer Feature

Over the years, the Helsen family has turned their hobby into a fulltime business. “My husband started it, and now I manage it,” Karen Helsen said of Nature’s View Nursery in Coopersville, Michigan.

View a highlight reel video at: www.greenstonefcs.com/YBSFSummer21

In 1998, Greg Helsen worked full time as a manager at a wholesale nursery, but he was also interested in growing ornamental nursery stock at home. He and his wife Karen started first growing nursery stock in one location, and then moved to another with more area so they could add poly houses, which are greenhouses with a polythene roof. They eventually bought land and transitioned to their current farm in Coopersville. The same year, the Helsens also had another big change – the arrival of their twin girls, Lauren and Peyton. Karen continued working at Bronson HospitalKalamazoo as the contract manager in the purchasing department, and after the birth of their son, Connor, she made the decision to move to a part-time role. They increased the number of poly houses and added more container plants, and in 2005, they had an opportunity to buy an already-existing arborvitae farm. Commonly called a cedar tree, these trees are used for residential use and in privacy screening. “That’s when I came to work here fulltime,” Karen said. “Of course, with the kids, it was very busy. Our families really pitched in to help us take care of everything.”

Farm home

Currently, the 40-acre farm has 11 poly houses, a stock field of arborvitae, upright juniper, and spruce trees, buildings, and a loading area. They grow flowering shrubs, evergreens, broadleaf evergreens, and more. As a wholesaler instead of direct-toconsumer, they don’t do much consumer marketing for their business. Instead, they focus on their relationships with many wholesale and retail clients in northern Michigan, northern Indiana, Grand Rapids, Kalamazoo, and Lansing. “Primarily we sell 70% of our stock to 30% of our customers, and we received a lot of that business through word-ofmouth,” Karen explained. “They know what we grow, we know what they need, and they keep ordering from us.” Like many owners of a small business, Karen has varied responsibilities on the farm. “I wear many hats. I’m the order taker, I do payroll, I do our taxes, I help harvest the plants, I help load trucks,” she said. “But I can’t express this enough – it only works because of our super talented crew. Our nursery manager has been here since inception, and the shortestPartners — Summer 2021

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GreenStone was instrumental for getting us going... Now we can selffund through the winter. term employee has been here for three years. Our employees are invaluable and such a blessing. It’s not mine, and it’s not Greg’s - it’s OUR business - the seven of us.” Family business

Along with taking care of the kids, their family members have also helped them along the way. At first, the nursery stock was field-planted behind Greg’s parents’ house, and then they moved behind Karen’s parents’ house. “Both our dads – Jerry Moore and Ike Helsen – have passed now, but they were instrumental in helping us,” Karen said. “When the nursery stock was at Ike’s house, he helped sell items at the roadside. My dad was our truck driver for awhile, and I still call our delivery truck my dad’s truck.” Their children, now 23 and 20, also worked on the farm, weeding, potting, planting, and harvesting. Lauren has a nursing degree, Peyton has a degree in interior design, and Connor is studying horticulture at Michigan State University.

➡K aren worked with Mitchell Schafer, who is vice president of lending out of GreenStone's Grand Rapids office. ➡T he Helsens have a 40-acre farm, 11 poly houses, and a stock field of arborvitae, upright juniper, and spruce trees.

Summer 2021 — Partners

“We tried to teach them good work ethic, and they turned out to be wonderful human beings in spite of us,” Karen joked. “It’s great to watch them grow, and awesome when they start speaking wisdom and you can learn from them.” Purchasing a dream

When the Helsens decided to expand by purchasing the 40-acre tree farm, they also looked to GreenStone for an operating line of credit. “In our business, it’s very labor-intensive on the front end prepping for harvest. Once

we harvest, we don’t get paid until 30-45 days afterward,” she said. “So you receive your last income in December, and then you have to make it through to May until you start getting income again - but there’s still rent, utilities, payroll taxes, and other expenses all of those months.” The Helsens turned to GreenStone to secure enough funds to make it through this time of growth. “GreenStone was instrumental for getting us going,” she said. “Now we can self-fund through the winter.” They chose GreenStone because of their experience with agricultural lending. “Though our personal credit was good, we were struggling to find a lender, and GreenStone was the only one that understood farming,” she said. “It’s hard to get collateral on trees with a regular bank. GreenStone immediately understood that, yes, there’s value in trees and equipment. Honestly, nobody really ‘gets’ farming like GreenStone does.” Pandemic

During April 2020, the Helsens were greatly affected by the COVID-related shutdown of greenhouses and nurseries in Michigan, but they were still able to sell to their customers in Indiana. When Michigan opened in May, they were greatly relieved.

During the pandemic, the Helsens again turned to GreenStone for the Paycheck Protection Program (PPP) loan, which was designed to provide a direct incentive for small businesses to keep their workers on payroll. Karen worked with Mitchell Schafer, her vice president of lending out of the Grand Rapids branch. “Mitch helped us immensely with the whole PPP situation, and he also advised us on other monies that were available during the pandemic,” she said. “I was worrying about what I was going to do. He was super helpful, and he made it really simple. He was very responsive to questions along the way. It really helped us through that time.” Mitch is originally from the small farming community of Fowler, Michigan, and he started working at GreenStone seven years ago to help people just like the Helsens. The rollout of the PPP loan was an incredibly busy time for him and all lenders, not only because they had clients who really needed them, but also because they had to learn and implement a totally new system. “It was a buckle up and hold on, all hands on deck kind of situation,” Mitch said. “Hopefully, it was a once in a lifetime experience for all of us. We did everything

we possibly could to get that money to our eligible customers.” Mitch wants customers to feel valued, no matter the size or scope of their operation. “I don’t ever want someone to feel they aren’t getting the best customer service, because farm size or style to us doesn’t matter – there’s an open door policy and we want anyone to call with questions. Many times we’re a sounding board for thoughts and ideas they have about their operation,” he said. “We’re here to serve all our customers, and the many of these are considered smaller, beginning farmers. Especially over the last year, I think you can see the true roots of a business you’re working for, and I like to think we proved ourselves through the whole process.” Future farm

As the Helsens moved from a beginning farm, to a small farm, to having adult children, they’re also looking to the future. “A cedar tree is a five-to-seven-year crop,” Karen said. “When you’re planting 6500 trees a year on a seven-year crop, thinking about the future is no light undertaking. With our family, our crew, and our financial support system, we have many good options.” ■

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. Dairy Outlook Strong, but Consider Risk Management To look ahead, you often have to consider the past. GreenStone dairy expert, Ben Spitzley provides insight with this commodity update.

Farming Diversity and Land Stewardship Leads to Success: Chaffin Farms The Chaffins strongly believe in incorporating best practices into all aspects of their farm. Taking care of their land and air are top priorities. ■

Dr. Kohl: Family Business Transition Checklist Financial monitoring of the cash flow, income statement and balance sheet will be critical in the year ahead. Dr. Kohl offers this guidance.

Partners — Summer 2021

YBSF RESOURCES: they might not have thought to look into. Working with someone who has a different background and possibly less experience in the industry can be extremely beneficial as it offers new perspective from a fresh set of eyes. Additionally, these visits can include discussion about emerging industry trends or regulation challenges and can lead to a stronger resolution for both through the different perspectives talking through the best way to approach these potential obstacles.

FARM FORWARD MENTORSHIP Committed to agriculture, GreenStone focuses on providing both financial and educational resources to help prepare the next generation of industry leaders for success. With this in mind, the fourth round of the cooperative’s Farm Forward Mentorship program partnered 21 individuals together, a young, beginning or small farmer to be mentored by an experienced farmer of a similar commodity. Through this mentorship program, mentors share industry knowledge and pass along years of lifelong lessons operating a farm to their mentee to better equip them for the many challenges faced when entering agriculture. After launching in February, program participants met with their partner in-person several times during the spring to connect with their partner and learn more about each other’s operation. Whether those meetings were in-person, via video chat or simply a 9

Summer 2021 — Partners

phone call, participants were encouraged to share ideas, ask questions and use one another as a resource. One of those meetings consisted of an in-person, on-farm visit to tour their partner’s operation – a crucial step in the mentorship process. The farm tours deepen each participant’s understanding of their partner’s farm and kicks off the friendship between the mentor and mentee. A valuable resource for the mentees, these on-farm visits provide the young, beginning and small

farmers a chance to gain insight on a larger or more experienced farm while possibly helping them envision a more defined future goal for themselves. They can freely ask questions and use this shared information to execute more efficient changes on their farm - leading to longterm success. Just as they offer the mentees a chance to better understand practices implemented by experienced farmers, each farm visit provides an equal opportunity for mentors to learn about newer practices

“Our goal is to facilitate a collaboration of young farmers and senior experienced farmer pairings to learn from each other and help the young farmers be more successful in their business,” says Carl Jessen, Jessen Coaching LLC and GreenStone program facilitator. “Having an in-person farm visit within the first two months of the mentorship program gives the partners a better chance to know each other, understand each other’s farming operation and make that initial connection.” As the program continues for the next 12 months, mentors and mentees will be encouraged to continue connecting often to discuss challenges, share ideas, and provide guidance. These conversations lead to both the mentor and mentee learning from one another and often resulting in friendships lasting long after the program concludes. For more information on GreenStone’s Farm Forward Mentorship, visit www. GreenStoneFCS.com/YBSF. ■

GROW FORWARD GRANT GreenStone recognizes the importance of young, beginning, and small farmers and the role they play in sustaining rural communities and agriculture. To provide this pivotal cohort of producers with the educational opportunities and support necessary for success, GreenStone once again is committing up to $40,000 to young, beginning, and small farmers through the cooperative’s 2021 Grow Forward Grant program. Since launching the Grow Forward Grant program in 2018, individuals have taken advantage of the opportunities this grant provides by participating in a variety of programs. From forestry management, on-farm consultations, and even workshops to educate farmers on effectively communicating with consumers, each grant provides farmers a chance to gain valuable knowledge and personal growth. After purchasing 160 acres to expand on his family’s original 40-acre tree farm in the upper peninsula, Cameron Morford took advantage of GreenStone’s grant to expand his knowledge and set his up his

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Definitely do it because it is a huge benefit and you learn a lot.

land as a qualified forest. Using the money from the grant, he was able to work with Grossman Forestry and a consultant to formulate a forest plan. Dollars from the grant enabled Cameron to build upon the knowledge he already possessed from growing up around logging and learn through hands-on experience with experts. When asked about advice he would give to someone thinking of applying for the Grow Forward Grant,

Cameron said, “Definitely do it because it is a huge benefit and you learn a lot.” The grant provides up to $1,000 to current customers and up to $500 to non-GreenStone customers. Farmers, producers and loggers like Cameron who qualify as a young, beginning or small farmer are encouraged to apply for the grant today: www.greenstonefcs.com/ybsf. Eligibility: •Young, beginning or small farmer • 18-35 years of age, or • Farming for less than 10 years, or • Sustain annual gross sales from agricultural production of less than $250,000 • Must be eligible to be a member of GreenStone by residing in Michigan or northeast Wisconsin Intended grant use must fall within one of the following categories: • Agricultural programs/events: educational course/program (on-site or online), conference fees, etc. • GreenStone resources: first time use of accounting and tax services, technology support, etc. • Non-GreenStone services: business and farm consultants, etc. For complete guidelines and the application, visit www.greenstonefcs.com/ybsf. ■

Partners — Summer 2021

Grabbing Hold: Suggestions for Next Gens By Barb Dartt, DVM, MS Consultant with the Family Business Consulting Group

Summer 2021 — Partners

I recently interviewed a successor, or next gen, who worked in a successful family business. They told me, in response to my question: How is your career path in the business progressing? “My dad and uncle keep telling me I need to grab hold. What else can I do?? I was asked to take a job elsewhere after college – try out a different company, a different boss. I moved two states away to a great role. I learned a ton. I moved up the ladder – even stayed a few years longer than I planned. I really enjoyed it. But I had the family business “bug.” I sent a proposal to my dad and uncle about a role I thought I could fill back home. They accepted – invited me back. I took a bit of a pay cut but my husband and I were okay with that. It was worth it to be in our home state, around family. That was three years ago. Despite the invitation and their agreement that I’m doing a great job, I’m questioned at every turn. Decisions that they said (out loud!) were mine are changed, without me knowing. I’m not even asked – I just find out later. It is so frustrating. I’m not sure how much longer I can do this.”

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The next gen believes they’re stepping up. Taking responsibility, proving themselves. And, the senior gen continues to behave as if they don’t believe the next gen is responsible and committed.

Variations of this story are common. The next gen believes they’re stepping up. Taking responsibility, proving themselves. And, the senior gen continues to behave as if they don’t believe the next gen is responsible and committed. How can next gens, respectfully, prove they’re ready? Here are some ideas:

about the progress you’re making within your business role. And, listen! Ask questions like, “If you had one thing you could go back and do over, what would it be?” Or, “What time in the business were you most worried?” Some of those senior gens aren’t big talkers. Make it your own little challenge – when do they seem most open to conversations? What kinds of topics get the most responses? How can you be the team member who is weaving a strong fabric of trust and shared understanding among family and key employees?

1. Earn it. Put in the time and effort required to operate, lead and (potentially) own your family business.

3. If necessary, lead succession by being an influencer. DO NOT wait for “this to all be yours…someday.”

Learn from parents, uncles, older cousins and siblings. Learn all you can about financials, business management and family dynamics. Build relationships.

The senior gen may never address succession. Their fears – loss of control, loss of income, loss of identity, loss of stature – may prevent them from embracing the profound challenge of watching someone who isn’t as good as them take on a job they love and excel at. IF your parents are the biggest barrier to succession planning, use all your extra resources to figure out what’s holding them back. Ask people they trust what might be getting in their way. And, if you can find the right time, ask them something like, “You say continuing this business is really important. And, it seems like planning for that is really hard for you. In fact, some of your behaviors feel to me like they’re actually directly opposite of ensuring succession. Can I share a couple of those with you?”

Understand that if you’re learning, taking on more responsibility over time and gaining confidence, you are “earning” it… earning more responsibility, more decisionmaking. At the same time, some parents are micromanagers – they can have unreasonable or unspoken expectations. How do you know the difference? Work on your self-awareness. And, find one or two non-family mentors – folks you trust who can give you honest (and sometimes tough) feedback on your own progress and capabilities. 2. Communicate, communicate, communicate. Model what you expect – especially when no one else will.

Take the extra time, even though your plate is full, to both share and listen. Share what’s important to you, why you prioritized a particular job that day, how you’re feeling

4. Be ready when they (finally) say, “Let’s get started.”

Don’t get bitter. Do what you can with what you have where you are. And, if you feel yourself putting too much of your professional

or personal life on hold, like the daughter in the opening example, start thinking about what life might look like if you didn’t work in the family business. Successful succession does not always mean everyone works and owns happily together. Sometimes success means that family relationships can grow because family are NOT working or owning together. Just because you don’t work together doesn’t mean you’re not family. I have often told the senior generation, “This succession stuff is some of the hardest work you’ll ever do.” Next gens – I know this process can be awfully hard on you, too. If I could pick one action item from above, I’d suggest finding one or two trusted folks to serve as your sounding board. Sometimes, as a successor, your pace is too fast, your expectations unrealistic, your skills not yet developed. And, sometimes, your folks will never get out of the way. Usually, the truth lies somewhere in between those two scenarios. And, when you’re in the thick of it, it’s awfully hard to find that truth. Lean on “outsiders” who can take away some of the emotion and help you see the situation more objectively. ■ ABOUT THE AUTHOR

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

The opinions stated herein are not necessarily those of GreenStone Farm Credit Services. Partners — Summer 2021

Summer Market Outlook:

Rain Ready By Matthew Naeyaert, GreenStone Capital Markets Senior Credit Analyst, and Nick Jablonski, GreenStone Capital Markets Credit Manager

All eyes are on the weather report at the moment, as drought conditions persist across much of the country. These weather concerns, combined with continued strong export demand, have helped to extend the grain market bull run that began in late 2020. Michigan has been particularly impacted by drought conditions, with 99% of corn and soybean acres located in either severe or extreme drought in June according to the U.S. Drought Monitor. Wisconsin has enjoyed more favorable conditions; however, drought is still a concern with 45% of corn acres and 44% of soybean acres in severe or extreme drought throughout the state. It is still early in the growing season, but improvement in weather conditions, particularly more rainfall, will be critical for yields this fall.

Summer 2021 — Partners

According to the USDA’s most recent data, corn crop conditions are on a downward trend with a smaller proportion of the crop in good to excellent condition as compared to both the previous week and the previous year. Despite this recent deterioration, nationally roughly 70% of the corn and soybean crops are still in the good to excellent category. While the current run-up in grain prices has been a welcome occurrence for row crop operations, those producers in the animal protein sector are beginning to feel acute pressure as rising sales prices for their products cannot keep up with the spike in feed costs, thereby compressing margins. Prudent risk management strategies have proven once again to be vital for animal protein operations, as those producers that have been able to limit their rise in feed costs via hedging strategies, cost-plus contract arrangements, and/or ample storage capacity have outperformed. Grain aside, supply disruptions and increased lead times have caused prices to rise throughout the economy, with both consumer and producer prices seeing significant upward momentum over the last several months. To put the current price inflation picture in context, the 0.6% month-over-month increase in the Consumer Price Index (CPI) seen in May suggests that prices are currently rising at a rate of ~7.2% annually. That being said, prices have only been rising at that pace since March, meaning that the current upward price pressures would have to remain for some time if we are to realize inflation at or near the 7% figure for a full year. It is also worth noting that a large percentage of the consumer price increases seen thus far have materialized in just a few product categories as opposed to broad price gains across the economy. For example, a full one-third of the 0.6% CPI increase reported in May was related to price increases for used vehicles, which have been in high demand due to the global semiconductor chip shortage that has limited new car production. Prices for used vehicles spiked 7.3% in May alone. The cost of commercial airline travel has also been one of the segments driving price increases, which is unsurprising given the rebound in travel seen over the last number of months.

Percent Change, May 2021 from May 2020 All Items Food Away From Home New Vehicles Used Cars and Trucks Rent of Primary Residence Owners Equivalent Rent Airline Fares 0

In light of the fact that price increases have largely materialized in certain understandable segments of the economy, the Fed and most economists are still of the opinion that the current inflationary trends will prove to be transient, and abate as supply chains slowly normalize post-covid. It remains to be seen if the current price pressures will indeed be transient, but inflation data will be key to track going forward as continued price pressures could force the Fed to tighten monetary policy, an action that would have ramifications throughout the economy and could stifle growth. The unemployment rate currently stands at 5.8% and the total number of unemployed persons per the most recent data from the Bureau of Labor Statistics is 9.3 million. These measures are down considerably from their recent highs in April 2020, but remain well above the levels seen prior to the pandemic (3.5 percent and 5.7 million, respectively, in February 2020). The leisure and hospitality, education, and health care sectors are currently adding jobs at the fastest rate. A somewhat paradoxical bifurcation is emerging in the labor market, with worker scarcity driving wage increases in most industries at the same time that the unemployment/ labor participation rate suggests continued slack, particularly in the service sector. While the unemployment rate will likely continue to steadily decline as the economy reopens (assuming no black swan event), this trend appears indicative of a potential structural shift in the employment landscape, with many employers reassessing what “fullcapacity” is from a labor perspective in light of rising wages, rapidly shifting consumer preferences and increased automation availability. The number of individuals receiving unemployment benefits continues to steadily decline month-over-month, a trend that 0 states opt 5 to roll-back 10 their 15 20 benefits25in an 30 should only accelerate as many supplemental effort to encourage a return to the labor market. The recent uptick in hacking events within the corporate and governmental arenas warrants mention as well. While ransomware incidents have been increasing in prevalence for the last several years, the recent attacks on Colonial Pipeline and JBS have put the public spotlight on the issue. The attack on JBS in particular shows that agriculture is not insulated from these events, and in fact may be a prime target for those with malicious intentions. While strong corporate security protocols can reduce the risk of attack, these events appear to represent a new risk that organizations across the global will have to reckon with for the foreseeable future. The housing market continues to be relatively tight, largely due to low inventory levels and supply constraints. As of May the national inventory of active listings was down 50.9% compared to the prior year, while the total inventory of unsold homes, including pending listings, was down 20.8%. This comes at the same time as shifting consumer preferences have led many prospective buyers to enter the housing market for the first time, further exacerbating the supply issues noted above. The national median listing price for single-family homes was $380,000 in May, up 15.2% compared to the same period last year. Large metro areas saw an average price gain of just 7.4% compared to the prior year, well below the median, which to some extent reflects how the pandemic and increased prevalence of remote work are affecting the housing market. Prospective buyers are increasingly seeking out suburban and rural housing options given the decreased need to be in close proximity to urban centers. Nationally, the typical home spent 39 days on the market in May, down from 71 days during than the same period last year. ■

Partners — Summer 2021

CONNECT

NEWS: GreenStone Members Elect Directors to Cooperative Board The members of GreenStone Farm Credit Services elected two individuals to the cooperative’s board of directors: new board member Michael Feight and incumbent Bruce Lewis. Michael Feight of Lenawee County, Michigan, was elected to a four-year term on the board representing the members in the association’s voting Region 3. A farmer for 45 years, Michael and his family have a cash crop operation of approximately 2,500 acres of corn, soybeans, wheat, and carrots in Tecumseh.

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I am truly humbled to be elected, and I hope to serve this region and GreenStone to the best of my ability.

“I am truly humbled to be elected, and I hope to serve this region and GreenStone to the best of my ability,” Michael said. “I appreciate how GreenStone does business, and I’m looking 15

Summer 2021 — Partners

forward to working with them and the region I represent.” He takes the seat of retiring board member Hank Choate of Jackson County. Incumbent Bruce Lewis of Hillsdale County was also reelected to a four-year term. Bruce and his wife Jennifer have a 700-cow dairy operation, and they grow 2,600 acres of corn, alfalfa, soybeans, and wheat. They also sell beef direct to the consumer through a retail store on their farm. "I'm excited to continue with my role, and I hope we have a continuation of excellent business performance for the membership," Bruce said. Additionally, GreenStone’s 27,000 members elected individuals to serve on the cooperative’s 2022 nominating committee. The nominating committee is comprised of GreenStone members from throughout the organization’s territory who are tasked with recruiting candidates for the next year’s board elections and nominating committee. The 2022 nominating committee includes: Region 1 - Barbara S. Krupp (Saginaw County), Jeremy P. Werth (Alpena County), Region 2 - Michael S. Noll (Sanilac County), Timothy F. Ruggles, (Tuscola County), Region 3 - Mark R. Baker (Hillsdale County), Thomas W. Schroeder (Hillsdale County), Region 4 - Lisa Ambrosio (Kalamazoo County), Russell P. Constanza (Berrien County), Jason R. Scramlin (Barry County), Region 5 - Conrad S. Bovee (Gratiot County), Abraham J. Pasch (Isabella County), Tyler C. Wilson (Gratiot County), Region 6 James R. Goodheart (Clinton County), Bradley J. Ritter (Shiawassee County), Region 7 - Gary J. Arendt (Kewaunee County), Ryan R. Brock (Oconto County). ■

GreenStone Employees Invest in the Future of Agriculture through the Michigan Livestock Expo and Wisconsin FFA Donations As a strong advocate for the agricultural industry, GreenStone continuously demonstrates its mission of cultivating future agricultural leaders. Thanks to an engaged team of employees, the cooperative once again joined forces with the premier youth livestock show, Michigan Livestock Expo, and two of Wisconsin’s northeastern FFA Chapters to raise dollars for youth!

Employee donations will be pooled to purchase livestock at the Michigan Livestock Expo Sale-abration and donated to one of two local Wisconsin FFA Chapters n Mishicot and New London. This year, GreenStone employees proudly donated $2,200 to these outstanding youth in agriculture.

GET INVOLVED – YOU OWN IT! GreenStone is owned and governed by members who have a vested interest in seeing the association continue its successful mission of serving rural communities and agriculture. You are an owner and you have the right and responsibility to guide the cooperative forward. In July the recently elected nominating committee members from GreenStone’s voting regions 4 & 5 will begin the candidate selection process for director and nominating committee positions for 2022. All other regions will meet in December to select candidates to run for the open 2023 nominating committee positions. We invite you to consider being a part of your cooperatives governance and submit your interest today! The Nominating Committee role is a great place to start. It is a 1-year commitment to get you exposed to the process. The time commitment is typically 5 hours over 3 days. Are you ready to get involved? You can!

Region 7

Region 1

Go to www.greenstonefcs. com/governance to learn more about the nominating and director roles. Complete a profile to express your interest or contact our corporate governance coordinator, Cheryl Motz at Cheryl.motz@greenstonefcs.com or 517-332-9557 to get involved! ■

Region 5

Region 2

Region 6 Region 3

GreenStone looks forward to what the future holds for these students and the impact they will make on the agriculture industry. ■

Region 4

Pause for Applause... SERVICE ANNIVERSARIES Help GreenStone congratulate and thank these staff who are celebrating an employment milestone. From five to 40, the years represent the dedication and service all employees provide our members.

July Chris McCormick Laura Woelmer Roxann Pratt Ann Klemp Elizabeth Conley Becky Fischer Pamela Sommerfeld Sandra Arnold

5 5 5 15 20 20 40 40

August Kelsey Maye Kyle Hurley Lori Phillips Karen Zoppetti Melissa Vincent Karen Six

5 5 10 15 15 20

September Amanda VanRaemdonck Ananda Worden Johnathon Thompson Carrie Lockwood Carolyn Case John Jones

5 5 5 10 30 35

Partners — Summer 2021

GreenStone FCS and FCS LifeExpress “20 years of bringing the best to members”• Can convert to Permanent coverage • Term periods from 10 to 40 years • Fixed Premium Guarantees • Optional Return of Premium feature Permanent Life Insurance

• Survivorship Life– Perfect for Farm Transition or Family Equalization • Whole Life– Guaranteed Permanent Death Benefit Can convert with Guaranteed Level Premiums. Disability Coverage

• Short term or Long-term coverage • Optional Return of Premium Feature • Farm/Business Overhead • Expense coverage • Customized coverage for your operation Long Term Care Coverage

Life and disability insurance is a critical risk management component to consider with every farm operation. Evaluating the type of insurance, its uses, and the correct amount can mean the difference between success and foreclosure. No one understands the importance of planning better than a farmer. It’s the attention you give your soil, your crops, and your livestock that produces a successful tomorrow. Careful planning is the key to your family’s future too. Life and Disability insurance will provide a monetary benefit to your family if you are no longer living or able to perform the farm duties. After many years of bringing Minnesota Life’s “Credit Life” to our members, GreenStone recognized the customer desires. FCS wanted to expand their members’ options for Life and Disability coverage to include products available from the entire marketplace. This was to ensure GreenStone members were receiving the very best in pricing, guarantees, and benefits. The old saying “A jack of all trades and a master of none” has never been a trait of GreenStone. With the goal of providing 17

Summer 2021 — Partners

a depth of knowledge and experience through another risk management tool, GreenStone partnered to create FCS LifeExpress. With the amount of knowledge it takes to navigate the life insurance industry, and all the evolving products, GreenStone knew partnering with experts is what members deserve. So twenty years ago, AgriBank, along with the Farm Credit associations and First Resource Group created FCS LifeExpress. FCS LifeExpress is a resource-based service for members to review the insurance marketplace to find the best options for each individual. Best Pricing, Best Guarantees and Best Benefits tailored to each individual on an easy to read chart, gives members the very best options in the marketplace to review in the privacy of their own home. No pressure… Just the facts in an easy to understand format!

Expanded products portfolio to target your exact needs: Term Life Insurance

• Least costly • Can renew to age 95

• Traditional Stand-alone LTC coverage • Life Linked LTC coverage – Pre use your Life insurance death benefit to fund LTC expense and/or Life insurance death benefit to pass to beneficiaries. Besides providing the best priced life insurance to cover debt or to replace income for the family, FCS LifeExpress is ready to work with customers and their trusted team of accountants or attorneys to design funding for the long term operational succession, optimal farm transition, and life risk management. At FCS LifeExpress, our goal is simple: To be the best resource to help members eliminate risk for their families and their farm operation. ■

GREENSTONE AWARDS SCHOLARSHIPS TO HIGH SCHOOL SENIORS Investing in young individuals aspiring to The 2021 scholarship awardees are: enhance the future of the agricultural industry Kayla Dufek – New Franken, WI, is an essential part of sustaining the industry’s attending University of Wisconsin – success. GreenStone is proud to support Green Bay the future success of youth in agriculture by Brett Dumaw – Deckerville, MI, awarding college scholarships to graduating attending Michigan State University high school seniors. The recipients this year have demonstrated academic integrity, commitment London Eldridge – Stanton, MI, to a variety of extracurricular activities, leadership attending Olivet College in their communities, and passion for the Kaitlyn Hansen – Sheridan, MI, agricultural industry. GreenStone feels honored to be a part of the journey toward achieving their attending Michigan State University goals. Leah Irion – Pigeon, MI, attending Michigan State University Once again, GreenStone has awarded $40,000 in scholarships to incoming college freshman, with $2,000 going to students pursuing a fouryear degree and $1,000 to students pursuing a two-year degree. Since 2010, GreenStone has presented nearly $300,000 in college scholarships to students who desire to make a positive impact on the agriculture industry. Kayla Dufek, one of the 20 scholarship recipients this year, states, “I want to thank GreenStone Farm Credit Services for their involvement not only in agriculture, but in all aspects of communities as well. I am grateful to be chosen as a recipient of this scholarship.”

Scott Jackson – Blissfield, MI, attending Michigan State University Aliza Jacobs – Luxemburg, WI, attending University of Wisconsin – Platteville

Brenna McKimmy – Beaverton, MI, attending Saginaw Valley State University Anna Moser – Dansville, MI, attending Iowa State University Jenna Pfeilstucker – Harbor Beach, MI, attending Saginaw Valley State University Joseph Schuh – Seymour, WI, attending University of Wisconsin – River Falls Anika Stehlik – St. Johns, MI, attending University of Findlay Stephen Stocchiero – Bangor, MI, attending Michigan State University Kaelyn Sumner – Cecil, WI, attending Kansas State University

Jacie King – Burr Oak, MI, attending University of Arizona

Adalee Thelen – St. Johns, MI, attending Michigan State University

Allison Littlefield – Burr Oak, MI, attending Michigan State University

Kathleen Zahm – Marne, MI, attending Iowa State University

Anna Loyer – Harrisville, MI, attending Western Michigan University

Applications for 2022 scholarships will be available on the GreenStone website in early 2022. ■

Erin McCarty – Ubly, MI, attending Delta College

Partners — Summer 2021

Meet Our Crop of Summer Interns GreenStone’s summer interns are well underway in their positions! A group of 26 student interns joined GreenStone’s team for the summer months covering a variety of departments. As a GreenStone intern, students gain exposure to realworld projects and experiences aligning with their career goals. Neil Mascarenhas Title: Business Intelligence Analyst Intern College: University of Michigan Major: Finance and Data Science Fun fact: He can solve the Rubik's cube. Camryn Lewis Title: Event & Outreach Intern College: Grove City College Major: Communication Studies and Management Fun fact: She loves anything creative: hand lettering, drawing, painting, you name it and she loves it!

Summer 2021 — Partners

Charlie Hoch Title: Information Services Security Intern College: Davenport University Major: Network Management and Security Fun fact: He plays and coaches volleyball at all levels, enjoys woodworking and making furniture, and he sings baritone! Alaina Schrauben Title: Marketing & Writing Intern College: Central Michigan University Major: Marketing Fun fact: She loves golfing and being outdoors. Summer is the season for her!

Clayton Muma Title: Client Support Intern College: Davenport University Major: Network Management & Information Security Fun fact: He built his first computer at the age of 12, which was the ultimate reason why he is pursuing the career of information technology! Troy Leffelman Title: Credit Intern College: University of Wisconsin – Green Bay Major: Accounting Fun fact: Troy enjoys making puns and other witty kinds of wordplay! Gretel Weller Title: Credit Intern College: Hope College Major: Accounting Fun fact: She loves to bake pies! Eric Nunn Title: Credit Intern College: Grand Valley State University Major: Finance and Business Economics Fun fact: Eric golfs on the Grand Valley Men’s golf team!

Alicia Shatrau Title: Credit Intern College: Michigan Technological University Major: Finance Fun fact: Alicia is a triplet and plays with one of her sisters on the Michigan Tech women’s soccer team! Haley Brunton Title: Crop Insurance Intern College: Michigan State University Major: Agribusiness Management Fun fact: Haley is left handed! Alexis Rosa Title: Learning and Development Intern College: Michigan State University Major: Human Resources Management Fun fact: She has moved 15 times! Erica Drobny Title: Human Resources Intern College: Michigan State University Major: Erica has her Bachelors in Supply Chain Management, and she is now going for her Masters in Human Resources Management and Labor Relations. Fun fact: Erica plays on the Women’s Club Soccer team at MSU!

Matthew Wilcox Title: Application Development Intern College: Davenport University Major: Computer Science Fun fact: Matthew’s favorite food is eggs, preferably scrambled or fried!

Hunter Holewinski Title: Crop Insurance Intern College: University of Wisconsin – Green Bay Major: Business Management Fun fact: Hunter lives on a dairy farm and enjoys showing all of his dairy cattle!

Steven Brylinski Title: Application Developer Intern College: Michigan Technological University Major: Computer Science Fun fact: Steven plays the bass drum in the Michigan Tech Pep Band!

John Collop Title: Compliance Intern College: University of Pittsburgh Major: Legal Studies Fun fact: John enjoys watching sports!

Miriah Dershem Title: Appraisal Intern College: Michigan State University Major: Agribusiness Management Fun fact: She has traveled to Europe with the MSU Ag-Tech Dairy Judging Team where she visited dairies and judged animals in competitions. Aidan Kowalski Title: Accounting/Finance Intern College: Michigan State University Major: Accounting Fun fact: Aidan has been to seven different countries – Mexico, Canada, France, Belgium, Netherlands, Greece, and Italy!

Ethan Campbell Title: Systems Administrator Intern College: Heidelberg University Major: Computer Science Fun fact: A fun fact about Ethan is that he plays the trumpet in the Heidelberg Marching Band!

Lilian Amirfazli Title: Capital Markets Intern College: Michigan State University Major: Finance Fun fact: Lilian fluently speaks three languages!

Jourdyn Armstrong Title: Appraisal Intern College: Central Michigan University Major: Business Fun fact: Jourdyn has two pet sheep named Stuart and Billy. They even have collars with nametags like dogs!

Matthew Modras Title: Service Desk Intern College: Michigan State University Major: Information Technology Fun fact: Matthew loves playing the guitar! He has been playing for over three years and he loves learning his favorite songs.

Kinsey Carr Title: Sales Intern College: Michigan State University Major: Accounting Fun fact: A fun fact about Kinsey’s family is that all first names in her extended family all start with “K’s”, which is about 20 of them!

Patrick Doyle Title: Business Intelligence Analyst Intern College: Michigan State University Major: Computer Science Fun fact: Patrick is a quadruplet! He has three brothers the exact same age as him.

Emily Kropf Title: Sales Intern College: Michigan State University Major: Agriculture Business Management Fun fact: This is Emily’s third summer interning at GreenStone!

Kyle Long Title: Sales Intern College: Saginaw Valley State University Major: Accounting Fun fact: He loves traveling and kayaking!

Mark Your Calendar... JULY

Michigan Livestock Expo Sale-abration MSU Livestock Pavilion, East Lansing, MI

AUGUST

Wisconsin State Fair (5-15) Wisconsin State Fair Park, West Allis, WI

National Blueberry Festival (12-15) Downtown South Haven, MI

AgroExpo (17-18) St. Johns, MI

SEPTEMBER

GreenStone Offices Closed In honor of Labor Day

Great Lakes Logging and Heavy Equipment Expo (9-11) UP State Fairgrounds, Escanaba, MI

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

World Dairy Expo (9/28-10/2) Alliant Energy Center, Madison, WI

Partners — Summer 2021

Nikolas Vorias 2 years of service Service Desk Specialist East Lansing, MI How have GreenStone's technical tools allowed us to support our customers?

BEHIND THE SCENES In this behind the scenes, two GreenStone employees from the GreenStone Service Desk team speak about how their daily work supports customers and improves the overall customer experience.

GreenStone’s technical tools have allowed us to set up employees to be able to work from home, onsite with the customer, or anywhere and still be able to assist our customers. Our My Access portal, online banking, and mobile app play a huge role in providing our customers with convenient servicing options. These different applications allow our customers to exchange documents and make payments, along with other things, without having to visit their local branch. What advancements has GreenStone made to better serve customers? I would say the biggest advancement would have to be the way we are communicating while some staff work in office and others work remote. Also, providing the best technology to make it possible to continue to support our customers regardless of the requirements we had to close our branches. We are always looking for ways to improve so that we can provide our customers with the best experience possible.

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We are always looking for ways to improve so that we can provide our customers with the best experience possible.

Describe how your role carries out the GreenStone mission of supporting rural communities and agriculture. As a Service Desk Specialist at GreenStone, my role involves working with our customers directly when they are having an issue with one

Summer 2021 — Partners

of their accounts or simply answering any questions they have. We also support our fellow employees to make sure they are up and running so they can continue assisting our customers. What do you enjoy about your role? I enjoy working directly with our customers and our employees on a day to day basis. Being on the service desk allows me to help customers with their My Access account or online banking accounts, which helps the customer gain access to the resources they need. I also really enjoy being faced with different issues everyday and working through them. What do you enjoy doing in your free time? I really enjoy fishing and hiking in my free time. This past year I was fortunate enough to visit Rocky Mountain National Park and while there I was able to catch my first brook trout using a fly rod! Josh Martin 11 years of services Service Desk Manager East Lansing, MI How has GreenStone’s technical tools allowed us to support our customers? The tools we use give us the ability to be very efficient with our customers and getting their

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Our My Access customer portal has given us more ways than ever to communicate and work with our customers...

needs fulfilled as quickly as possible. By always looking into ways to improve our tools, we stay at the top of the game in providing service to customers. What advancements has GreenStone made to better serve customers?

What do you enjoy about your role?

Our My Access customer portal has given us more ways than ever to communicate and work with our customers, giving them an efficient and user-friendly platform that helps them keep their finances in order. Likewise, our service desk team has matured in our operations to more easily help our customers and ensure they have the tools they need to succeed.

Being responsible for our customer service to not only our staff, but to our customers as well, gives me a great sense of pride. We strive to provide the best customer experience our customers have gotten; being a part of that is great.

Describe how your role carries out the GreenStone mission of supporting rural communities and agriculture.

In my free time I enjoy camping and hiking with my family, homebrewing, and running all of the technical components at my church. ■

GreenStone’s scholarship will help me achieve my future goals by taking off some of the stress that comes along with college and getting me one step closer to my future career. I am truly grateful to be a recipient of this scholarship!

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— Jenna Pfeilstucke, 2021 Scholarship Recipient

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The service desk is there as the first line of support to help our customers in any way we can. Agriculture is a lifeblood of our region and knowing we are able to help the industry grow is very rewarding.

What do you enjoy doing in your free time?

Thank you for selecting me to be a recipient of this year’s scholarship. I am truly grateful for your support and I look forward to putting the money to good use as I pursue my career education at UW- Stevens Point.

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— Allison Littlefield, 2021 Scholarship Recipient

I am more than grateful that I was chosen to have the opportunity to use this money toward my career goals. It will be extremely helpful for me to complete my years of schooling – thank you!

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— Anna Loyer, 2021 Scholarship Recipient

...Candid Comments

Partners — Summer 2021

The GreenStone Story:

Let’s Get Together…

In Person or Online

For years we have been serving customers easily and spontaneously when they walk into our local branches, or by appointment at their farm, home or office. As the preferences and lifestyles of our customers have changed, so has our daily workflow and service options. That face-to-face opportunity stands strong, and we have also shaped technology to meet our customers evolving needs. The goal of GreenStone is to meet your needs anywhere and everywhere. While these advances in technology and

service options have been growing over the last decade, the necessities of the last year have helped to refine and advance them further to provide an even greater benefit to members. We want to make this part of your life and business simple. We’ve been expanding our resources in order to make working with us as convenient and as custom to your preferences as possible.

IN BRANC ON LINE ON FA

Summer 2021 — Partners

You don’t have to be an expert in technology to take advantage of these options. We’ve designed things to be user friendly and intuitive, and if you ever have any challenges, we have a full team of support staff ready to assist along the way. We’re happy to help guide you. Even as your personal circumstances change, the availability of these technologicallyadvanced options are here to stay. We want to meet you where you are, when you want, and how you want to do it. And whether you choose to do business in person or online, we want to make sure you know about all the tools available to make the entire process convenient: My Access

My Access is a single, secure portal you can use to access your GreenStone account and make working with your GreenStone team a seamless experience. Consider using: • File Exchange: Busy time on the farm or at home? No in-person trip needed if you don’t have time to meet – you can send documents securely between you and your GreenStone staff. This cuts down on the back-and-forth between you and your lender, as documents can be immediately transferred securely. This also serves to speed up the entire process, which is always a welcome benefit. • My Documents: Not only can you securely access and download your account documents, but you can also view and print bills and statements. This allows you to easily and quickly check your documents, and if you need a paper copy for your records or your accountant, this offers convenient access. • My Alerts: Want to know what’s going on? Take control! Set up custom account alerts to be sent to your email or phone. This way, you have information you want coming to you 24-hours a day, right in your hand. You won’t miss a thing. • Online Banking: Manage your loan accounts seven days a week. View account history, details and drafts, transfer funds, and schedule payments. Plus, you can access your information and remotely deposit checks through our convenient app - available in the Apple and Google Play stores. This bank is always open and always easy to access! • Online Loan Request: Yes, online! Apply online for your country living and farm

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My motto has always been: simplicity and speed. I like to impress my customers with how efficiently we can meet their needs... real estate financing needs with our simple and convenient online loan request. This feature gives you the flexibility to work on it anytime, with anyone. You can take advantage of this feature at home on the couch with your spouse – no pressure.

• My Profile: Easily manage your contact information, email address, password, security questions, authentication image and phrase, and sign up for paperless bills and statements from your profile in My Access. It’s all here – set your preferences to make it as easy as possible to work with us. New Communication

“I was about four months into refinancing a sizable account from another lender when the full effects of the pandemic hit, necessitating all new communication techniques. Everything was done electronically. Loan papers and documents were sent securely online. With multiple parties involved, and in different states early in the pandemic, the technology actually helped get them to closing even faster than if I had been in the branch and sitting down with the customers. They were thankful for the tools we had.” - Shaun Gainforth, GreenStone Financial Services Officer, Caro. In order to make the online experience easier, please consider taking the following steps: Share your email

We want to work with you! If we can reach you online, we can quickly give you the information you need. Let’s keep the lines of communication open – both ways! We send relevant, important notifications about issues that matter to you. Just update your email address in your My Access account or contact your local office, and they will be happy to take your information. Sign up for eConsent

People working together aren’t always in the same town, and even if you are, signing

a form doesn’t have to require a trip to the branch. To make it simple and quick to work together, sign up for eConsent which will enable you to sign and receive regulatory mandated forms electronically in a simple, quick online process. Please rest assured your information will remain safe and confidential. Get paperless bills and statements

All of your information is available at your fingertips. If you don’t want another piece of mail filling your mailbox, let us keep the records for you online. You’ll be notified as soon as the bill and statement are available online, giving you earlier access and online convenience. And, it will always be stored online where you can easily find it for the year! Video conferencing

Want to talk face to face, but you can’t get away to meet in person? Let’s make it happen online. We have convenient options to connect with you by video. In-person meeting by appointment

One of the benefits of working with GreenStone is you know your team. Call or text, talk it through, and set up a time and location to meet that is most comfortable for you. While many of our customers are embracing the new technology, we’re not taking away any of the old. Personal relationships remain core to our culture, and providing options for all the ways that we can communicate with you, work with you, and serve you, is our goal. “My motto has always been: simplicity and speed. I like to impress my customers with how efficiently we can meet their needs and how quickly we can get the money in their hands. With the technology we’re now using, it is just that much easier and faster.” – Shaun Gainforth, FSO. ■ Partners — Summer 2021

Director’s Perspective :

What's Changed? Peter Maxell

Jed Welder

The past year and a half has certainly shed light on the strengths and weaknesses of our modern society. Throughout the entire pandemic I have been amazed how business has still functioned in such a strange time in our lives. I often wonder how our economies would have functioned if this were to happen ten, twenty or even thirty years ago. With the continual advances of technology, how would this have gone even five years ago? I have seen many changes within GreenStone’s adaptation of technology in my relatively short six-year tenure as a director. I recall asking about mobile banking when I first became a board member and receiving the response, “it’s coming!” A few years ago, I felt compelled to get my GreenStone My Access account set up. I found it easy to use and a clean platform to check balances and look up any account information within my own timeline. Then, in the fall of 2019, GreenStone released its new version of the mobile banking platform. I recall I couldn’t wait for the update after hearing about all the improvements from GreenStone’s information services team. Fast forward to March 2020, and suddenly

Summer 2021 — Partners

we weren’t sure which way was up, but our daily farm operations kept on fully functioning. At this point today, I am thankfully well versed with tools like My Access, mobile banking, and DocuSign which helped limit the impact on my farm. Mobile banking allowed me to transfer funds and make deposits by simply snapping a photo in the app and instantly, securely depositing the check funds into my Farm Cash Management account (with significantly higher mobile deposit limits compared to my local bank). Logging in is a snap with facial recognition on my phone and all of my accounts are at my fingertips. The decline in interest rates also allowed me to refinance several loans through a simple interest rate conversion with the help of my financial services officer, Kim Knoerr. We were able to easily and quickly complete the transactions remotely utilizing DocuSign in a very simple, efficient manner. The best part of every one of these tools is they are all completed in a secure environment. The time savings and efficiencies are paramount to my operation and allow me more time with my family. So now whenever someone asks me if I use online and mobile banking, my immediate response is, “Absolutely. You should do it, too!”

The best interactions I’ve had with GreenStone team members have been face to face on my farm or at project sites. Of course our digital platforms allow us to take care of bills and paperwork without going to a physical office and we should applaud our information security teams' efforts. As a relationship based partner, our great organization cannot survive on technology and virtual tools alone. I am proud of the financial services officers and crop insurance specialists who continue to prioritize the personal, onsite interactions with our members. In west Michigan, farmers have limited access to rural broadband and online tools for various reasons. The traditional models of looking someone in the eye as you do business are still necessary along with the convenience of online tools for those who benefit from them.

Andy Snider

At Snider Farms we have had a Revolving Line of Credit (RLOC) with GreenStone basically since the start of us doing business together. Very early on it involved us calling the branch and stopping in to pick up a check. Then, things migrated to us having a checkbook to write our own checks from our RLOC. About five years ago, we were able to add a Farm Cash Management (FCM) account to our RLOC and began using it as a total banking tool, actually eliminating the need for our bank business checking account. One of the biggest conveniences this improvement provides was we no longer needed to constantly move money back-and-forth between GreenStone and our bank

checking account. Having checks that clear quickly on the FCM account helps reduce interest paid on the RLOC balance; whereas when we had to transfer funds from our bank to GreenStone, there were delays in checks clearing often causing large unused balances. Then came the added feature of being able to use the mobile app to deposit checks (by taking a picture of the check front and back to make an online deposit), which virtually saved all the extra trips to town. And having our primary income sources direct deposited into the FCM account is also an interest saving feature, since the funds are available to pay the RLOC balance instantly by skipping the mail delay and having to transfer them to the bank for deposit. The mobile app also allows us to check our balances anytime, anywhere, even on vacation…and I’m not sure if that is good or bad.

The DocuSign feature has also been a welcomed convenience even prior to COVID. Being able to sign paperwork without going to the office or having our loan officer have to come out to us has made it a very useful tool as well. Sometimes these new things, especially for us older generation folks, are scary; but they continue to evolve the options and are constantly improving the user friendliness. One of the things I appreciate about GreenStone, which comes from the vision of the leadership team and the information technology department, is the desire to always improve and look for the next thing to help keep our institution and customer service options on the cutting edge and never lacking in relevancy. I would like to say, and not just because I hold a seat on the board, that I am proud to be a GreenStone customer!

Dale Wagner

Last evening, I was visiting with my almost 90-year-old mother. Somehow, we ended up in a conversation about the changes that have occurred in dairy farming. We started on the obvious things in her and Dad’s lifetime, like milking cows by hand and carrying the milk to the bulk tank. That progressed to the use of pipelines for the milk to flow through from the stanchions and then onto milking parlors. And of course, ended on now milking cows with robots! We talked about how we had baled thousands of small bales and stacked them in the haymow by hand each summer, to today, chopping hay with those “giant choppers” as she said, and packing it in a bunker silo using a large tractor.

The thing that seemed to amaze her the most was when I told her I could print off my monthly bills, pay them from the computer, and then instantly review my bank statements online in order to balance the checkbook. She questioned to confirm, “You don’t have to wait for the mail to deliver it all?” As our conversation continued, I explained to her that I can take a picture of a check with my cellphone and have it deposited within 24 hours. “That’s crazy,” she responded. We all have seen a lot of change and can only expect more for the next generation. I believe how we embrace new technology can help us be successful in our business. As a GreenStone director, I realize we are in a “people business,” but I also encourage everyone to use the technology available to gain time and efficiency while still embracing the benefits from the people side of the relationship. ■

Partners — Summer 2021

that rely on it to sustain the way of life. Sustaining meaningful conversations about agriculture, food production and the wide array of associated issues and consequences is always relevant and necessary as populations creep further and further from the farm. Sustainable farming requires sustainable conversations. The conversation on agriculture issues can be complex as individuals start with a broad divergence of understanding. Sustainable agriculture was first addressed in the 1990 Farm Bill, and was cited as a term defined as an integrated system of plant and animal production practices having a site-specific application that will, over the term: satisfy human food and fiber needs, enhance environmental quality and the natural resource base upon which the agriculture economy depends, make the most efficient use of renewable resources, sustain economic viability of farm operations, and enhance the quality of life for farmers. All seem to be very praiseworthy objectives.

Legislative Matters:

“SUSTAINING” ENGAGEMENT IN POLITICAL AGRICULTURE– Connecting the Conversation in a Complex Age Challenging times abound and the challenges in our agriculture industry seem to never go away. Maintaining engagement in a productive way is necessary. “Our lives begin to end when we stay silent on things that matter” was a repeated theme by Dr. Martin Luther King. Engagement led to change through education and action. Similar education and action are necessary for agriculture and our rural communities. Sustainability takes on a new meaning when facing the need to have a more educated marketplace when it comes to policy making. There are many wonderful positive attributes of agriculture. Every farm family can identify a long list of the benefits their families and communities have enjoyed, despite facing challenges from time to time. Farmers know the challenges and rewards of their work. And then there are those that were 27

Summer 2021 — Partners

once connected to the farm through family heritage, and some with a romantic notion from a past visit to their grandparents’ house. Any genuine awareness of the challenges and rewards related to agriculture is a benefit to important policy conversations. Sometimes even reminding people where food and fiber comes from can make a big difference, however nothing should be taken for granted in terms of knowledge when the stakes are high. While we may want to believe that there are no politics in agriculture, we know there is an enormous amount of policy that can be made which can affect the otherwise positive attributes of agriculture and the communities

Sustainable farming practices and climate change have now been mixed as if it is one subject that has never been discussed. Having meaningful conversations over time should help sort that out. Sometimes it seems the public and policy makers miss the understanding and importance of having a sustainable food production system in which Farm Credit plays a critical role. Basic food literacy seems lacking. Not only do we collectively have to maintain sound sustainable farming practices, sustaining engagement to connect what is happening in agriculture and our communities become critical to connect the history to the present. Effectively identifying the issues before they get politicized will assist in gaining good supportive policy. Sustain engagement to sustain agriculture becomes a necessary connector in this complex age. The better we do together in sustaining engagement with agriculture, the better we will minimize the conflicts in policy and dampen the noise that shoots out from the convergence of many competing objectives. It may seem like common sense to communicate, but sustaining the engagement coupled with action is not always easy. Keep telling your agriculture story to enjoy the best results. ■

PAC Progress:

THE ART Political Action Committees (PACs) often take center stage in legislative outreach, as the purpose is clear and participation is relatively easy. The process might be thought of as a science: collect contributions from individuals and distribute funds to candidates. However, the art of the PAC process lies in all the characters on stage and their movement to and from center stage. For GreenStone, the legislative outreach stage is characterized by interrelated tales that converge in the continuing story of building the network of elected officials that support and take time to understand our rural communities and agriculture. The complex production unfolds with nimble and evolving backdrops, characters, and story lines. Some are familiar, someare not, but the story captures the mind and invites the audience to join the stage in the whirlwind of political scenes. The first scene is filled with Farm Bill discussions. As the input is shared, the

stage moves to meetings across Farm Credit and results in the formation and staffing of the Farm Credit Council. Structurally, the predecessor GreenStone associations participated since the beginning, but if we fast forward to 2008 your Board of Directors recognized the expanding impact of legislative decisions on Farm Credit and agricultural businesses. As a result, the intertwined and concurrent tales expand from the federal lens to include state level backdrops with new characters and special effects. This transition brings in customers, local lobbyists, additional PACs and GreenStone staff, and new technology. The federal and state levels of government play out in three actions: agricultural advocacy, PAC, and lobbying. Agricultural advocacy consists of industry collaborations and outreach. It is also direct individual, audience contact with elected officials through meetings, calls, and emails. These scenes are generally shorter but may be the most effective due to the

timely, succinct, and constituent impact communication. The entrance of PAC scenes come at scheduled reoccurring intervals to be effective without being overwhelming, and again brings the audience to the stage. Today, lobbying is the final part that makes entrances and exits as professionals to influence political decisions on our behalf. However, this is not a final act and the show goes on as elected officials and priorities are constantly changing. The rapid change of scenes and characters is unpredictable and drives the nature of the art being made. We each have parts to play on the stage as champions of the agriculture industry. Your role as interactive audience members is essential, commended and greatly appreciated, but we all must continue to work closely to ensure that the role of rural communities and agriculture are not seen as a minor story in the grand play. Instead, it is an essential component to a thriving economy and safe food system in the United States and across the world. ■

First Quarter Updates: • Over 20 legislative meetings • 5 PAC checks have been delivered

Partners — Summer 2021

Summer 2021 — Partners

LIVE

Country Living Customer Feature

Ryan Hauser has experience as a do-it-yourself worker. As a side hobby, he flipped four houses to generate enough profit to buy vacant land in Monroe, Michigan. “Once I had the land, I had aspirations of building the house myself,” Ryan said. “It’s not for everyone to be the general contractor of your own house. Some people think you’re crazy. If you’re dealing with legitimate contractors though, it’ll go well.” Through GreenStone, Ryan and his wife Annie were able to easily make the transition from a homesite loan to a construction loan. “Other places told me there was no way they would finance a loan where I was the general contractor on my own house,” he said. Loans through GreenStone

To make it all happen, the Hausers worked with Brian Young from GreenStone’s Monroe branch. “We have quite a few homesite loans that turn into construction loans,” Brian confirmed. “However, Ryan knew from the beginning that he wanted to be

the general contractor on his home. He also wanted to start the construction and then get financing when he was halfway done with his house. That doesn’t usually happen.” Since GreenStone does appraisals up front, the lender can take into account what’s already built. “Part of what makes GreenStone different is that we’re flexible, and we’re willing to take on a loan on a building that’s already in construction,” Brian said. “Ryan and I set that up from the beginning. We got the plan together so we knew what he needed to make it a smooth process.” Ryan used a builder to set the foundation, do the framing, and install the windows. From there, he took over and contracted out the rest of the house. “GreenStone worked with us to do it all, and it was extremely beneficial,” he said. Partners — Summer 2021

Homesite and Construction Loans

Homesite vacant land loans differ from construction loans, but both have a variety of options. Homesite loans have no acreage restrictions, typically require a 20 percent down payment, and customers can choose from a variety of rates and length of loan terms. Construction loans are available for do-it-yourself customers like Ryan or fully contracted construction. People can choose to pay interest only during construction, and there are flexible draw options. The Hausers worked together to make sure that the loan transition worked well.

“

“We continually talked through the process, ran the numbers, and Ryan kept me up to date as the project moved along. He knew what he needed, and together we worked it all out. He built a beautiful house,” Brian said. Hard work

Ryan has a history of working hard. He grew up in Monroe, in the same town as his parents’ business Hauser Auto Glass. He played football at the University of Toledo, then lived in Nashville and Atlanta. However, family has a strong pull, and he moved back to be near them.

With all the rules and restrictions, it’s nice to have someone allow you to do your own thing.”

“My mom is one of eight kids, and my dad is one of seven kids. I have 52 first cousins,” Ryan said. “We spend a lot of time hunting, and fishing, and watching our kids grow up together.” Ryan and his wife Annie have four daughters – twins Sylvia and Vera (8), Hazel (5), and Naomi (3). The house is designed especially to fit the family’s tastes, including a wine room, a private nook, a playroom, and custom design touches. “The wine room was a Mother’s Day gift for my wife,” Ryan said. “It has a few cabinets, a repurposed walnut accent wall we took out of another house, and we’re able to display the wine on the wall.” Annie and an architect partnered together to design the house from scratch. “The little nook she designed might seem like a closet in size to anyone else, but for us it’s a perfect nook,” Hauser said. “Elevated, cushion platform – it’s great.”

View a highlight reel video at: www.greenstonefcs.com/CLSummer21 31

Summer 2021 — Partners

Future

➡O pposite Page: Ryan and Annie made the transition from a homesite loan to a construction loan while working with Brian Young from GreenStone’s Monroe branch.

In Monroe, Ryan and his business partner now own a credit card processing company called Grand Mill Merchant Processing.

➡A bove: The Hausers designed their house to fit their tastes, including a wine room, a private nook, a playroom, and custom design touches.

They’re also working on a garden room and changing the girls’ bedrooms as they get older.

“I’ve worked in the financial world, and this was a natural fit,” Ryan said. “In my experience working at other banks, I think it’s extremely unique that GreenStone is willing to work with us in this way. Letting me be the general contractor on my own build, start financing in the middle of the build – it’s unconventional in the industry. With all the rules and

restrictions, it’s nice to have someone allow you to do your own thing.” With the tight margins on house flipping, the Hausers are not planning on buying another home soon. “As the market changes, we’ll reevaluate. Right now we’re just enjoying our own house,” he said. ■

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. Barn home financing with GreenStone

Frequently Asked Questions about Buying a Country Home

Barn homes, also known as barndominiums and barndos, are rapidly gaining in popularity for building and financing across the country.

GreenStone’s country living loan officers have extensive experience in financing country homes and rural properties, and have shared a list of their most frequently asked questions.

Make the Plate Pledge, Impact the Future of Agriculture. Join the Michigan FFA Foundation’s challenge to switch your licenses plate to benefit the future of agriculture!

Partners — Summer 2021

BENEFITS OF DRINKING MILK Have you ever thought about what good nutrients are in milk and what good things it does for your body? In our Spring Partners edition, we provided tips for drinking water regularly and how much you should consume in a day. Now, fresh off June which is recognized as dairy month, it’s good to look at milk and the value it can provide. Milk provides several health benefits not only to younger children, but also to adults. Milk can help protect your heart, build strong bones, prevent cancer, minimize depression, encourage weight loss and much more. The Benefits: The number one benefit of drinking milk, which most people already know, is that it builds very strong bones. Milk contains a lot of calcium, which is crucial for building stronger bones and teeth. Calcium is an important nutrient for the growth of all bones and muscles, which is why we encourage young people to drink more milk. Yet to enhance the longevity of strong bones throughout your life, drinking milk is good for the long run. Heart health is very important at any age, and studies show that drinking milk can help improve it. Milk is a great source of potassium, which can decrease blood pressure and reduce the risk of strokes and heart attacks.

Summer 2021 — Partners

As recent studies have shown that calcium and vitamin D can protect against cancer, it may be even more important for our older population to consume more milk. Vitamin D can possibly play a big role in the decrease of cell growth. This research has been conducted using observational studies, so this can vary from person to person. If your family has a history with cancer, some researchers and doctors recommend you try this! Not only does milk help with physical health benefits, but it has also been proven to help with mental health. Vitamin D levels support the production of serotonin, which can be a driver of sleep, mood swings, and your appetite. Without vitamin D, one’s hormone balance can suffer, which can lead to clinical depression and stress. It is proven that milk can be an energy booster and relieve negative feelings, so drinking milk may be the way to go! Contrary to the misconception that

milk can cause weight gain, studies that have shown that milk is a great way to lose or maintain your weight. The calcium and Vitamin D in milk help to burn calories and boost your metabolism, which promotes weight loss. Milk is also high in protein, which can help reduce hunger and discourage binge eating. On top of these five important attributes to drinking milk, there are plenty of others, such as muscle growth and decrease of heartburn. Taking all these factors into consideration, it may be smart to think about how these positive health benefits can help yourself and those around you. As we continue to work very closely with our dairy farms and show them appreciation, consider consuming more of this healthy beverage! ■ Resources: Milk: Health benefits and nutrition (medicalnewstoday.com)

Commodity Cuisine... French Baguettes The perfect vehicle for all your favorite summer toppings and dips! Caprese Garlic Cheese Bread | French Bread Pizza | Spinach Dip Ingredients • 31/2 cups all purpose flour • 1 1/2 cups + 1 Tbsp water • 2 tsp salt • 1 tsp instant yeast; also known as Quick Rise or Rapid Rise yeast • 1 Tbsp honey Instructions Mix all ingredients in a bowl, cover with a plastic wrap and let rest for 15 minutes. Over a period of 1 1/2 hours, do 3 sets of stretch and folds, flipping the dough upside down after each set. Cover the bowl with a plastic wrap and place in refrigerator overnight for about 12-14 hours.

Turn the dough on a lightly floured work surface. Divide into 3 equal parts and shape into rectangles. Cover and let rest for 4560 minutes. Preheat the oven to 500F, with a baking stone positioned in the upper half the oven and a bread pan filled with hot water on the bottom rack. Stretch each dough rectangle slightly and fold into a cylinder, sealing the seams. Using your hands, roll the cylinders gently stretching them to desired length, about 14-15 inches. Place on a lightly floured surface, seam side up. Cover and proof at a room temperature for about 30-60 minutes, or until the dough has sufficiently proofed. Transfer the baguettes to a piece of parchment paper, seam side down and dust off excess flour. Cut 3 scores on each baguette. Open the oven, taking caution not to get burned by steam, and slide the baguettes off onto the baking stone. Reduce the temperature to 475F. Bake for 15 minutes. Remove the water pan, rotate the baguettes, drop the temperature to 450F and continue baking for another 15 minutes or until deep golden brown. ■

Source: https://tasteofartisan.com/french-baguette-recipe/

Partners — Summer 2021

PREVENTION TIPS FOR TICKS: In North America, Lyme Disease is on the rise and scientists have a suspicion of why: the tick. Since the early 2000s, diagnoses of Lyme disease has increased by over three times. With summer approaching, there are a lot more outdoor activities with family, friends, and pets. This is when we start worrying about bug bites, and ticks are close to being the most gruesome of them all. Ticks thrive in tall grassy areas and in the woods. They are most normally found on pets since they brush up against bushes, trees, and tall grass, but they attach to humans as well. We have some tips from the CDC (Center for Disease Control and Prevention) to help prevent tick bites and ways you can keep them out of your yard. Tips for Ticks on Humans: 1. Treat your clothing. There are multiple options for treating your apparel to go out into the outdoors. One of the best options is using Permethrin, which is an insecticide for preventing ticks from coming near you. You can also use any other kind of insect repellent to keep them away from you. 2. Know ahead of time where to expect the presence of ticks. Ticks are known to live in tall grass and bushes, and even on certain wild animals. If you are going to be around these areas, either try and avoid the possible hot spots or spray yourself with repellent ahead of time. 3. When you come inside, check your family immediately for ticks and shower. Right before you come inside, it is recommended that you check your entire body. If you can get into a shower after being around an area that is known for ticks, do it. Taking these setps will help prevent them from being on your body for too long before they become attached. Tips for Ticks on Pets: 1. Talk with your veterinarian. Your vet will know your breed of pet the best and will tell you the best ways to prevent them from getting ticks.

Summer 2021 — Partners

2. Purchase flea and tick medicine for your pet. It is a good idea to start your pet on flea and tick medicine in the spring, and repeat application throughout the summer. These are the times where you and your pets will be outside the most and in these grassy areas. 3. Check your pets for ticks every day. It is a good idea to check your pet for ticks before they come back inside. Look around their ears, on their head, by their tail, by their toes, and under their collar. This is where ticks are most likely to be found. Tips for Keeping Your Yard Tick-Free: 1. Mow your lawn often. Ticks tend to hide in tall grass areas. Keep your lawn mowed, and trim grass around it to discourage ticks from gathering in your yard. This will help keep them off your pets as well! 2. Keep lawn furniture and playground sets away from tall grass. Having lawn furniture out in the summer is so nice – but not when you get infested by bugs and ticks. Keep it on the patio and away from tall grass. The same goes for the playground set; keep it more toward your house and not near the edge if there is tall grass. 3. Store wood in a dry area. If you are using wood for bonfires, keep it neat and dry. Ticks like wet wood and attach. Ticks like the wet wood and attach to it easily. Ticks have been on the rise again this year. It is important that you keep an eye on your pets, children, and even yourself this summer! These are just a few tips on how to do so. For more information about the prevention of ticks, visit the CDC website. ■ Sources: Preventing tick bites | Ticks | CDC Avoiding Ticks | Ticks | CDC

FINDING YOUR NEW FAVORITE SPOT – 5 PLACES YOU NEED TO CHECK OUT By Jimmy Gretzinger Michigan Out-of-Doors TV One of the questions I get most often is, “What are your favorite spots in Michigan?” In my 20 plus years of traveling the state, and producing a weekly TV show, I’ve been to just about every corner of the mitten. So, here are my top 5 places you need to check out this summer that, just maybe, you haven’t ever been to. And while you’re exploring, consider getting out on the water or a fishing charter; I’ve identified a few options to start with, but there’s plenty to consider wherever your adventures take you! Number 5 – Alpena. The thing about Alpena that makes it great, but also a spot that most folks overlook, is that it’s just not easy to get to. There are no major highways going to it and it’s not really on the way to anywhere else. One of the benefits of being off the beaten path is there’s less people. This coupled with an abundance of natural resources makes this area home to some incredible fishing opportunities. If you can plan a trip there this summer, you may want to check out Steve Hubert’s charter service (www.chumbucketcharters.com). He’s almost always on a good bite and knows the local fisheries very well. Alpena has a lot to offer and is worth the hours of backroad driving to get there! Number 4 – Frankfort. Frankfort has grown to be one of my favorite places for a weekend getaway. The downtown area is small but has all that you want and plenty of stuff to buy that you never knew you needed. There are plenty of open beaches and things for everyone in your family to do. For fishing, head to the East End Marina and find Steve Martin, the captain of the Mi Hi Charters (www.mihicharters. com). If Steve is full, he can direct you to several great captains to take you out fishing this summer. Frankfort has everything that some of the bigger tourists’ towns have but not as many people – it’s a must for your summer plans! Number 3 – Indian River. Indian River is right on I-75 at exit 310 and holds a special place in my heart. I grew up hunting and fishing not far from town at our little cabin. The one thing that you need to do here is check out the Inland Waterway. The Inland Waterway is a stretch of connected waterways starting in Pickeral Lake, flowing into Crooked Lake, the Crooked River, Burt Lake, Indian River, Mullet Lake, the Cheboygan River, and finally dumps you into Lake Huron. This is a must for anyone who loves northern Michigan. All the info on the trip can be found at www.irchamber.com.

Number 2 – Drummond Island. It’s hard to beat a day on the island. If you have never been to Drummond, all you need to do is head to the east end of the Upper Peninsula. From there, drive your vehicle on the ferry and a few minutes later you will be on the island. There’s so much for you to see, and if you’re interested in fishing, talk to Ivan at www.sturgeonbaycharters. com. Ivan can tell you all the places you need to check out as you catch some local lake trout. And don’t forget to hit the Northwoods Bar for a great bite to eat before you leave. Let me tell you, if you go to Drummond Island once, you will want to go back year after year! Number 1 – Beaver Island. I cannot say enough about this emerald jewel in the middle of Lake Michigan. It has all of my favorite things about our state in one spot. Tons of water, lots of hiking trails, restaurants, and some awesome fishing. Contact the boys at Indigo Guide Service (www.indigoguideservice.com) and they will show you some of the best bass and carp fishing you have ever seen. Beaver Island is one of the prettiest places anywhere in Michigan and well worth the trip! The 2-3 hour ferry ride, or the 10-minute flight, is all that stands between you and a vacation you won’t soon forget. We as Michiganders are very lucky to have so many great corners of our state. Go explore new areas in the mitten this summer – you may just find your new favorite spot! ■ The opinions stated herein are not necessarily those of GreenStone Farm Credit Services.

Partners — Summer 2021

LEARN

CROP INSURANCE NEWS: • P erils – The vast majority of naturally-caused perils are included under multiple-peril crop insurance (MPCI) coverage. This includes but is not limited to: adverse weather, failure of irrigation water supply, fire, insect damage or plant disease (unless you improperly or insufficiently applied pest or disease control measures) and wildlife damage. Those covered under Revenue Protection are also protected from a decline in market price as well. • Timeframe – Insurance coverage generally begins at time of application or time of planting, whichever is later. The end of the insurance period is generally recognized as the earlier of: total destruction of the crop, final harvest of the crop, abandonment of the crop, or the end of the insurance period (which is December 10th for corn insured as grain and soybeans). • Insured’s responsibilities – For planted crops, the insured must notify the insurance company within 72 hours of the initial discovery of the damage or production loss, but no later than 15 days after the end of the insurance period, even if the crop has not yet been harvested. If you have a revenue protection policy and have a claim based on strictly price, the insurance company must be notified within 45 days of the harvest price announcement for the crop.

CLAIMS & APPRAISALS Most producers have been there before. No matter what you do during the growing season, sometimes Mother Nature just will not cooperate, and you’re anticipating that your yields may fall below your guarantee. Obviously this is not the situation you would like to be in, but that’s why you purchased crop insurance to begin with. If you do find yourself in a claims situation, there are some important things to remember that can help the process go a lot more smoothly. Many times, money is left on the table because these guidelines are not followed. Don’t lose out on a potential indemnity because notification was not done on a timely basis.

FRESH APPLE REVIEWS Please remember that your fresh apple policy can be singled out for a fresh review at any time during the year or at claims time. You will be asked to prove that you have sold your apples as fresh and at what price they were sold at. The requirement is that 50% or more were sold as fresh, at a fresh price in at least 1 out of the last 4 years. Call us if you need more information regarding what documents can be submitted

Summer 2021 — Partners

• Appraisals – If you are going to harvest your planted crop in any nontraditional manner, a crop appraisal needs to be completed, otherwise you may lose out on a potential indemnity payment. The most common time an appraisal is needed is when you’re going to chop corn that is insured as grain for silage. If you have a corn policy, any acreage that is not harvested traditionally as dry grain should be appraised. You should contact your crop insurance specialist at least a week in advance of when you are planning on harvesting so it can be arranged for an adjuster to come out and perform the appraisals while the crop is still in the field. In the event you harvest before an adjuster is able to perform appraisals, representative sample strips must be left in the fields so the adjusters can use them for appraisals. The strips must be at least 10 feet wide and run the entire length of the field. If you do not agree with the appraisals you’ve gotten from the adjuster, do not sign them. Call your crop insurance specialist right away and we can have another adjuster come out and perform a second appraisal. Throughout the whole claims adjustment process, if you ever feel uneasy or that something doesn’t seem right, contact your crop insurance specialist as soon as possible. Obviously no one wants to have a claim; producing a bumper crop is much more enjoyable than receiving a large claim check. Remembering these key points will help make the process go that much more smoothly. ■

and what needs to be on those documents. If you cannot prove fresh sales, RMA requires that your apples be changed to processing for the current crop year. ■

appraised before you chop. Otherwise, you will be instructed on how to leave samples in your field for later evaluation. ■

CROP INSURANCE ALERT! BEFORE YOU CHOP!

If you think you may be facing a forage production loss, make sure to contact your specialist to file a claim. If you didn’t have forage insurance for the 2021 crop year and are interested in coverage for 2022, the sales close date is the same as wheat, September 30th. ■

It won’t be long until it’s time to fill the bunker silo. Before chopping corn for silage, please call and arrange for an appraisal ahead of time. Every effort will be made to have your crop

FORAGE PRODUCTION

HAIL INSURANCE It is not too late to purchase hail insurance for 2021. Hail is a separate policy from your multi-peril crop insurance coverage. As an added bonus, your hail policy can provide coverage for fire, lightning, vandalism/malicious mischief and transit to the 1st place of storage. Rates and coverage can vary by crop and county. Keep in mind, hail insurance must be purchased before damage occurs. Contact your GreenStone crop insurance specialist today to set up an appointment to review your options. ■ IMPORTANT DATE REMINDER! Late fees will be charged on any unpaid premium on October 1st. Please make note of this important change as late fees cannot be waived. If you cannot pay your premium before the due date, please contact your crop insurance specialist to make payment arrangements. Payment is due regardless of whether or not you have an outstanding claim. ■

Crop Insurance Calendar... JULY

1 15

Forage & Fall Wheat Premiums Billing Date Spring Acreage Reports Due & Processing Beans Final Plant Date

2021 FALL WHEAT & FORAGE CLAIMS Appraisals are required when a customer plans to do something with the crop other than harvest in the normal manner. If you do not plan to take your wheat/forage to harvest, we must appraise the acres prior to destruction. ■

AUGUST

Spring Premium Billing Date

SEPTEMBER

Wheat, PRF & Forage Production Sales Close Date. All changes need to be completed by the September 30 deadline! If a signed application is not returned, your policy will automatically renew at the same level you insured at during the previous crop year.

End of Insurance Period (loss reporting deadline) for peach & blueberry

OCTOBER

NEW APP! DAIRY REVENUE PROTECTION APP

Forage Underwriting Report Signature Due Date

GreenStone is excited to provide dairy producers with a new mobile app for Dairy Revenue Protection!

Wheat Final Plant Date*

End of Insurance Period (loss reporting deadline) for Fall Crops

Final Claim Reporting Date for Dry Beans

The new DRP app offers all the convenience and ease of use of the GreenStone DRP website analyzer tool, but now on a mobile device. Producers can perform side-byside comparisons of coverage details unique to each operation, including the ability to track income and calculate loss probability. The DRP mobile app is designed to help producers decide on risk management strategies based on quarterly statistics. The easy-to-use new app offers many benefits, including: • Daily alerts when prices are released • Convenient tracking of your endorsements • Best options for your individual operation The new DRP app will also send notifications to your Greenstone risk management specialist. We are continuing to develop and test new features, which will make this app even more useful in the future. ■

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

Partners — Summer 2021

Structure Update — Crop Insurance With thousands of options available for crop insurance, having a provider who understands your farm and the variety of coverage options available to you is invaluable. To ensure our team is able to provide you the best overall experience, knowledge and support, GreenStone has reorganized our crop insurance team in order for our specialists to be focused by commodity segment. This specialization began several years ago when we identified the need for agents to be specialized in fruit crop insurance, and the customer appreciation of that emphasis led us to continue this segmentation. Not only are the crop and farming practices unique for each industry, the continued development of new risk management options for our producers across all commodities requires a team laser-focused on understanding the options and helping customers identify the right coverage for their unique needs. This has led us to crop insurance teams with specialization in row crops, specialty crops, and livestock.

Summer 2021 — Partners

With the growth of GreenStone’s partnership with customers in providing crop insurance coverage, this move is directly tied to GreenStone’s Core Four Value of putting the customer first and delivering quality. As one of the largest crop insurance providers supporting over 20% of the crop insurance customers in Michigan and Wisconsin, and nearly 30% of the Dairy Revenue Protection customers, this added focus will only continue to improve the support provided to our members. As part of this reorganization, GreenStone is pleased to announce these teams will be led by three of our crop insurance specialists: Cory Blumerick, David Moll, and Scott Schmidt. While serving customers and assisting their teammates, they will be working closely with Ben Mahlich, who continues to lead the crop insurance team. Ben Mahlich – VP Crop Insurance

Ben joined GreenStone in 2002 and has held numerous roles in lending and management. Ben is also the current Chairman of the Farm Credit Crop Insurance Committee. He learned the value of crop insurance in 2012 when he was a regional vice president of customer delivery and there was a drastic freeze. Crop insurance was not available at that time for all crops. Since that time,

Ben has been a strong supporter of the advancement of crop insurance to address all crops and further develop risk management tools for all farms. Cory Blumerick – Crop Insurance Manager – Specialty/Livestock Crops

Cory joined GreenStone in 2014 and moved himself and wife Roxanne back to Cory’s home state, leaving the warmth of Hawaii behind. Cory quickly adapted to specialty crops due to his degree in tropical plant and soil science from the University of Hawaii and led the charge for GreenStone and all of Michigan on the benefits of Whole Farm Revenue Protection. Cory, a recent 40 under 40 award winner from Fruit Grower News, has been instrumental in leading GreenStone’s specialty crop team to support customers with integrating new coverage options into their risk management plans, and representing the needs of our customers with USDA’s Risk Management Agency for Whole Farm Revenue Protection and cherries. David Moll – Crop Insurance Manager – Row Crops

David Moll joined GreenStone in 2012 after graduating with an Agri-Business Management degree from Michigan State University, a Masters in Agricultural Economics at Purdue University, and

being a Grain Marketing State Specialist for the University of Wisconsin. David has proven his success with his deep understanding of how crop insurance and grain marketing work together and how the Farm Service Agency programs with crop insurance products can provide the best risk management solution for our customers. Scott Schmidt – Crop Insurance Manager – Row Crops

Scott Schmidt joined GreenStone in 2012 bringing with him an abundance of farm knowledge from his work on his family’s farm. After graduating from Central Michigan University, Scott was a technical recruiter for the automotive industry where he learned to read and understand people, which he has leveraged into his excellent customer service to be able to provide individualized solutions for customers here at GreenStone. GreenStone is excited for the added value this enhanced focus will provide our members. With the depth of knowledge and expertise, and continued local service, these leaders and their teams are ready to provide even better service and solutions to our customers. If you have any questions, please contact your local GreenStone crop insurance specialist. ■ Partners — Summer 2021

Long History of Trust Tax and Accounting Customer Feature

When Jeff Alexander took over his dad’s farm in 1993, his family had already established a relationship with GreenStone as a lender. Along with the financing partnership, he then began working with Tax Accountant Sue Smith in the Adrian branch on tax planning services right away. “Sue was new at GreenStone, and we were new to running the business, and so we learned together. She and her husband were getting started in farming too, and I just thought it was such a good fit, since she knew exactly where we were coming from when it came to showing us different ways to save on taxes,” Alexander said. Jeff and his wife Julie meet with Sue a few times a year to plan their tax strategy. She helps them decide if they should pay for items ahead, or defer a payment, and they go over all their finances before the end of the year. Sue also helped the family transfer their land into PA-116, which preserves the land

Summer 2021 — Partners

for agricultural use while also reducing the amount of property taxes. “Sue helped us navigate through PA-116 and held our hands through the process,” Alexander said. “Sue has been great about showing us what tax benefits we qualify for, and enrolling us in PA-116 helps us save money.” Building a farm

Larry Alexander, Jeff’s dad, farmed in Hanover, Michigan, but he sold it and moved the family to Florida in 1976. After 11 months, Larry and Jeff both missed the farm. So at 15, Jeff moved back to Michigan and began farming anew with his dad on Na-Lar Farms. On the dairy and crop farm, Jeff had his area of focus. “I started taking care of the cows, and I wanted a registered herd in the worst way,” he said.

➡O pposite Page: Jeff Alexander has worked with Tax Accountant Sue Smith throughout his farming career. ➡B elow: Larry Alexander, Jeff’s dad, also uses GreenStone for his financial needs.

View a highlight reel video at: www.greenstonefcs.com/TaxAccSummer21

Over the years and generations, Jeff built up the genetics of his herd. He credits Doug Long of Longhaven Farms and Dr. Richard Fish of Countryside Veterinary Service with mentoring him through the process. “I was infatuated with genetics, and above all others, Doug Long let me pick his brain,” he said. “Dr. Fish was also instrumental in helping me, and I probably learned more from him than any man on earth.” Jeff’s farm won the Progressive Breeders’ Registry award over 20 times. This prestigious award is given to herds that are 80% homebred with minimum requirements for milk production. Transition

In 2013, the farm installed robots to milk their cows, which gave Jeff the ability to attend more events with Julie. After some employee changes in 2018, Jeff decided to sell the cows and concentrate on crop farming.

Tax Calendar... AUGUST

Non-farm employers file Form 941 for the 2nd 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.

SEPTEMBER

3rd quarter estimate is due for 2021 for individuals that pay estimated taxes. S Corporations file a 2020 calendar year income tax return (Form 1120S) if an automatic extension was requested. Partnerships file a 2020 calendar year income tax return (Form 1065) if an automatic extension was requested. Corporations deposit 3rd installment of estimated tax for 2021.

OCTOBER Currently, they farm 1600 acres of corn, beans, hay, and wheat. They recently purchased a second baler (Silage Special) designed to bale wet hay, and they also purchased a wet wrapper. They individually wrap and seal each round bale.

throwing up a big tent and having the wedding reception right in their newly purchased field.”

Once again, Jeff benefited from GreenStone’s tax services during his transition from dairy to crop farming.

“After 40 years of milking cows, everything comes easy after that,” he said. “Adam does a great job with the equipment, we keep the machines maintained, and we’re working only 50-60 hours a week instead of 100. I joke that now my main job is a trophy husband.”

“One main factor was to minimize tax complications and liability,” tax accountant Sue Smith said. “I wanted to make sure that he didn’t have to pay more taxes than necessary when he was selling cows and dairy equipment. Also, I worked with him to make sure he was structured to be successful on the crop side of farming, just like he was successful on the dairy side of it.” Jeff’s wife Julie is a state representative in her third and final term. They have four adult children, Adam, Andrew, Jared, and Anna. Adam farms full-time with his dad. He’s the main mechanic, and he also does the planting and combining. The boys all have F endorsement licenses so they can haul grain when needed, and this fall Anna is getting married. She and her fiancé’s family just bought their own 400-acre farm. “She’s marrying the milk man,” Jeff said. “We’re

Jeff is enjoying the reduced stress that comes with crop farming.

Trust

Alexander considers the level of trust to be an important one when considering who to work with on his taxes and finances. “We’ve never had anyone other than Sue do our taxes, because there’s just that trust,” Alexander said. “You’re talking about someone’s livelihood. Some years you’re worrying in there when things aren’t going well, and some years you’re smiling from ear to ear when things are going well. You have to trust someone to go through all of that with them.”

Individuals file a 2020 income tax return (Form 1040) if an automatic extension was requested. Corporations file a 2020 calendar year tax return (Form 1120) if an automatic extension was requested. Non-farm employers file Form 941 for the 3rd quarter to report Social Security, Medicare, and withholding.

Jeff started with GreenStone, and he plans to finish his farming career with them. “My dad is 85 now, and he still does his taxes with Sue. He likes her. It’s easy – she’s such a pleasant person, and she’s really good at teaching us what we need to do. There’s never been a moment when we thought we should be with someone else. Anytime anyone asks us about taxes, we say go see Sue,” he said. Farming is a business where cutting costs is always a concern, but in some areas there’s no argument. “It’s always good to shop around for the best rates on everything, but not our tax accountant. There’s no other option for me. She’s the one,” Jeff said. ■

Partners — Summer 2021

Tech Tip:

Ransomware affects you too

Matthew Cosgrove GreenStone VP of Information Security

What is Ransomware? There has been a lot of news coverage lately about ransomware and the global impact it has had on our supply chain industries. Internet Complaint Center (IC3) defines ransomware as a type of malicious software that encrypts data on computer files, systems, or networks, making it unusable. The malicious cyber-criminal demands a “ransom” for their release. If the ransom is not paid, the victim’s data remains unavailable. Ransomware is not new in the world of cybersecurity. In 2020, there were an estimated 506,000 ransomware incidents reported with a minimum of $18 billion paid in ransoms (Emisoft Malware Lab, 2021). That number does not include the outage and restoration time of these systems and organizations, which could potentially add billions more in total cost. However, it is a challenge to know the exact number of damages caused by ransomware because not every incident is reported.

Summer 2021 — Partners

“

Tools like My Access and our File Exchange provide customers with another secure way to send and receive files with GreenStone.”

Everyone is affected by ransomware. Colonial Pipeline, which is the largest pipeline system in the United States, suffered a ransomware attack in May. The attack shut down their pipeline operation which created fuel shortages and price increases along the U.S. East Coast. Colonial Pipeline did end up paying the ransom of $4.4M to gain access to their systems. Fortunately, based on reports, they have since been able to recover most of the ransom. JBS, which is the world’s largest meat producer, was also a victim of a ransomware attack in June. The attack shut down its meat processing operations at its plants in North America. This disruption of meat production could easily create strains on meat prices. We still do not know if JBS paid the ransom to the cyber-criminals. We do know they have been working diligently to restore their systems and processing operations. It is not only Fortune 500 companies that are the targets of these sophisticated attack campaigns. The cyber-criminals will target small to medium-sized organizations, local municipalities,

school districts, and even individuals. These attacks highlight a larger issue – how do individuals protect themselves from ransomware, if large organizations with infinite resources struggle with protecting the critical infrastructure in the U.S? How do we protect our systems? Preventing a ransomware attacks requires a multi-faceted defense-in-depth strategy. Defense-in-depth is a military strategy that relies on layers of protection. An example of this would be a medieval castle. The castle is protected by archers, high walls and even a moat. To breach the castle, the attackers would have to successfully get past numerous defensives. GreenStone applies the same approach when it comes to protecting our systems and our customers’ information. GreenStone utilizes current internet security standards of encryption, TLS (which stands for “Transport Layer Security”), and ensures your information is encrypted between your computer and our website to prevent unauthorized access. Transport Layer Security is also used to ensure all email communication is encrypted and secured in transit. Tools like My Access and our File Exchange provide customers with

another secure way to send and receive files with GreenStone. How do you protect your system? Securing your systems starts with keeping your computer operating system, software and applications current and up to date. These software updates contain fixes for potentially critical security vulnerabilities that have been discovered. By installing these updates, you are closing the holes that could be used by cyber-criminals to gain access into your computer or mobile devices. Once you have your software up to date, the next step you should be taking is to make sure that you have an anti-virus and anti-malware solution installed on your computer. These products should be configured to automatically update and run regular scans on your system. Microsoft Defender is included with Windows Operating System, and it provides these protections. The Federal Bureau of Investigation sums it up best: “The best way to avoid being exposed to ransomware—or any type of malware—is to be a cautious and conscientious computer user. Malware distributors have gotten increasingly savvy, and you need to be careful about what you download and click on” (Federal Bureau of Investigation, n.d.). ■ Sources: Emisoft Malware Lab. (2021, April 27). The cost of ransomware in 2021: A country-by-country analysis. Retrieved from Emsisoft: https://blog.emsisoft.com/ en/38426/the-cost-of-ransomware-in2021-a-country-by-country-analysis/ Federal Bureau of Investigation. (n.d.). Ransomware. Retrieved from https://www. fbi.gov/scams-and-safety/common-scamsand-crimes/ransomware

Partners — Summer 2021

Generational Transfer Tax Law Changes

Could You Be Impacted? 45

Summer 2021 — Partners

President Biden announced the American Families Plan in April 2021. There are significant benefits in the Plan for families depending on eligibility – universal preschool, free community college, direct support for childcare, a paid family and medical leave program, extension of the ACA premium tax credits, an extension and increase of the child tax credits, and an expansion of the earned income tax credit. By Chad Zagar GreenStone VP & Managing Director of Tax & Accounting

These benefits need to be paid for somehow, and the American Families Plan included details of proposed tax law changes to pay for the benefits with other taxes, with most focused on income earned by taxpayers in excess of $400,000. There are also significant proposals to change estate tax laws: Senator Sanders’ 99.5 Percent Act and a Democratic Coalition proposal called the Sensible Taxation and Equity Promotion (STEP) Act. First let’s summarize the current estate law when the owner of a farm or ranch dies. Currently, $11.7 million per individual and $23.4 million per couple in assets are exempted from the federal estate tax. This protects most farms from the estate tax. When a decedent passes farm assets to an heir, the heir can take fair market values as their basis in the property (i.e. stepped-up basis), effectively avoiding capital gains taxes. Considering cropland values have roughly tripled over the past 25 years, producers are extremely sensitive to any changes to the estate tax exemptions or stepped-up basis. The 99.5 Percent Act would decrease the estate tax exemption to $3.5 million ($7 million per couple), among other things. The STEP Act proposes to eliminate stepped-up basis upon death of the owner.

What percent of agricultural producers would be impacted by one or both of these proposals? The Agricultural and Food Policy Center (AFPC) at Texas A&M University released a report of their findings on June 15, 2021. AFPC maintains a database of 94 farms located in 30 different states. Below is a table from page 16 of their report to show findings and the impact of these proposals on these 94 farms: As you can see, 92 of 94 farms would be impacted by the STEP Act, and 41 of 94 would be impacted by a generational transfer tax. There’s an old saying that farmers are cash poor, dirt rich. This is due to the asset-intensive and low-margin nature of the agriculture sector. Farmers’ strongest asset historically is their land. Land values have generally always risen, and farmers use it as the primary collateral to fund their business operations. The 99.5 Percent Act and STEP Act will create significant tax liabilities upon transfer for many capital asset-intensive businesses like farms. Farming is a family business – in excess of 95% of our nation’s 2 million farms are owned by families individually, or through partnerships and corporations. The goal that multi-generational farmers strive for is to hand the farm off to the next generation in a better operating and financial position than what they received it. These proposed tax law changes could be a huge blow to that goal.

SCENARIO 1

SCENARIO 2

SCENARIO 3

SCENARIO 4

SCENARIO 5

NO GENERATIONAL TRANSFER

GENERATIONAL TRANSFER

CURRENT TAX POLICY

STEP ACT

99.5% ACT

STEP ACT + 99.5% ACTS

Number of Farms Impacted

n/a

2/94 (2%)

92/94 (98%)

41/94 (44%)

92/94

Average Additional Tax Liability Incurred for Farms Impacted

n/a

$370,431

$726,104

$2,166,415

$1,431,408

Average Change in Ending Cash Balance (2026)

n/a

-$382,200

-$796,627

-$2,375,717

-$1,588,365

Generational transfers will be saddled with debt loads that may or may not be supportable by business operations. It will cause farming families to consider these options: • Take on the debt load resulting from a generational transfer • Sell a portion of their land to cover the tax • Get out of farming altogether because it doesn’t make financial sense to keep farming The Biden administration has proposed creating tax carve outs reportedly to protect farmers and ranchers. Details of these carve outs are not available at this time. One proposal noted that, as long as the farm stays in the family, no tax is due. Senator John Boozman, ranking member of the Senate Committee on Agriculture, Nutrition, and Forestry stated, “The data speaks for itself and should give pause to anyone considering this approach as an option to pay for new additional federal spending…” Members of both political parties have voiced concerns with these proposals. House Agriculture Committee Chairman David Scott (Democrat), wrote President Biden in June saying that while he supports the American Jobs Plan and the American Families Plan, he is worried the proposals to increase taxes to pay for these programs could hurt farmers. “I am very concerned that proposals to pay for these investments could partially come on the backs of our food, fiber, and fuel producers,” Representative Scott wrote. Agricultural producers should pay close attention to these proposals to understand how their farming operations may be impacted in the future. ■

Partners — Summer 2021

3515 West Road East Lansing, MI 48823

Summer feature highlight... Ryan Hauser has experience as a do-it-yourself worker. As a side hobby, he flipped four houses to generate enough profit to buy vacant land in Monroe, Michigan. Read more on page 29.

Partners Summer 21

Articles inside

Tech Tip – Ransomware Affects You Too.

Tax Calendar

Tick Prevention

Crop Insurance News

Guest Column

Commodity Cuisine French Baguettes

Benefits of Drinking Milk

Country Living Blog Brief

PAC Progress

Legislative Matters

Directors' Perspective

Candid Comments

Calendar of Events

Behind the Scenes

Summer Interns

GreenStone Scholarships

Market Outlook

Guest Column

Member News

Pause for Applause

Agriculture Blog Brief

YBSF Resources

CEO Comments