Partners Spring 21

Promoting the business success of our customers and the rural community

GreenStone FCS

+ MAEAP

A C E N T U R Y + AgDirect

+ Tech Tip

Spring 2021

The Future Looks Bright

OF PROGRESS

COMMEMORATING FARM CREDIT

GreenStone Story: CUSTOMER PRIVACY AND THE PUBLIC RECORD

YBSF SPOTLIGHT: SUNNY HARVEST FARMS pg. 5

SPRING 21 5 YBSF

Feature. Sometimes opportunities find you by happenstance. Such was the case for Eau Claire fruit and vegetable grower Kyle Froehlich, who in 2012 came across a 40-acre farmstead with a home and barn just three miles north of the fruit and vegetable farm he grew up on in Berrien Center.

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29 GreenStone Story. We value our customer relationships, and want you to feel comfortable and knowledgeable with how GreenStone handles your loans and information.

43 Crop Insurance Feature.

With so many things affecting the milk price, producers must challenge themselves to learn more about risk management.

47 Tax Feature. With a new expansion 35 Country Living Feature.

Mac and Ashley Ward's vision of transforming a family farmhouse on 10 acres in Parma, MI was recently brought to life with the help from GreenStone.

and their accountant retiring, the Matsches took advantage of combining services and moved their tax, accounting and payroll services to GreenStone.

3 CEO Comments.

President and CEO Dave Armstrong sews the seeds of optimism for the season of renewal.

40 Guest Column.

Jordan Browne, Host of Michigan Out-of-Doors TV, shares tips on hunting morel mushrooms.

11 Market Outlook.

The recent surge in commodity prices deserves top billing so far this year given its direct impact to the financial performance of many ag producers and processors alike.

49 Tech Tip – Trust but verify Large scale cyber-attacks have impacted many throughout the globe. Here are some ways you can protect yourself from these attacks.

15 AgDirect Financing.

For more than a decade, GreenStone has partnered with AgDirect, one of the fastest growing equipment financing programs in the nation.

17 Guest Column.

True to form, with the new administration comes another potential change in direction with respect to regulated waters.

31 Director's Perspective.

Laura Braun and Terri Hawbaker share their experiences as women leaders in agriculture.

33 Legislative Matters.

Careful attention and communication will be critical as the winds change and impact environmental policy.

34 PAC Progress.

In the Political Action Committee (PAC) progress, disbursements are the main event.

38 DIY Yard Games.

There are so many yard games you can create with your family; some can be more complex, and others are easy to make!

39 Healthy Hydration Water keeps you hydrated and is a great first step in the healthy direction.

9 Grow Forward Grants 10 Farm Forward Mentorship 14 Agriculture Blog Brief 19 MAEAP Program 20 Member News 21 Pause for Applause 22 Circle of Excellence 24 Member Voting 25 Annual Reort 26 Calendar of Events 26 Candid Comments 27 Behind the Scenes

Publisher’s Note: I don’t always get the chance to chat with our customers directly, so moments like other day make an impact! It was a short conversation, when I was reviewing with the Matsches a few minor edits for their dairy farm story (page 47). As Carrie referenced their family, she so naturally commented how their GreenStone financial services officer (Dan Gitter) is a part of that farm family.

Don’t get me wrong, this wasn’t the first time I’ve heard reference to these relationships – it’s one of the things I particularly love about the culture of our team – but the simplicity of her thoughts drove it home once again. I’m pretty fortunate to get to help tell these stories and be a small part of the “family” relationship!

Two other customer stories who also note the value of their relationship with their GreenStone teammate in this issue include fruit and vegetable young farmer Kyle Froehlich (page 5) and the Wards’ remodel of the family heirloom home (page 35).

These customers also represent a diverse and engaged group of farmers, and that extends beyond the type of products they produce. Take two of our directors as an example, two strong women making an impact as leaders on their own farms and communities. They share their perspective of being women in many roles of agriculture (page 31).

Among the many other pages of information, resources and tools, our GreenStone Story (page 29) highlights more on our commitment to these customers, and all members, starting with our Customer Bill of Rights and commitment to confidentiality.

As you flip through this issue of Partners, I wish you and your family – however you define it – safety and success this spring. Happy reading!

– Melissa

37 Country Living Blog Brief 41 Commodity Cuisine...

Asparagus & Turkey Roll Ups

42 Crop Insurance News 45 Crop Insurance Calendar 48 Tax Calendar

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

Editorial Cassie Bowman Amber Echlin Melissa Rogers Alaina Schrauben

Art & Design Hailey Andres William Eva Annah Horak

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

CEO Comments:

Springing Back What a difference a year makes! My message to you last spring was all about the uncertainty, anxiety, and fear the pandemic was causing across the globe.

Yet, human resiliency and scientific advances began to re-emerge providing hope that we would be able to beat back the scourge of this virus. Fast forward to where we are today, with the pace of vaccinations picking up, it's also accelerating optimism for being able to once again hug loved ones, dine out, travel, conduct business face to face, and generally live our lives as God intended, which will be a huge blessing for us all!

When is GreenStone going to open its offices?

This is a question on the minds of GreenStone staff and members alike. As I write this, the majority of our territory (the State of Michigan) continues to require all businesses that can operate remotely to do so. Given that GreenStone is not a depository institution like most banks and/or credit unions, which handle significant numbers of cash transactions, we are able to conduct a large percentage of our business with our members through a combination of going to their place of business, using our offices by appointment, and through tools such as telephone, virtual meetings, online banking, our customer My Access portal, and drop boxes at all of our locations. While the State of Wisconsin’s current workplace orders are somewhat less restrictive, we have found that operating under one policy for customer service enables us to serve all our members more effectively.

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Spring 2021 — Partners

Along with the rest of our team, I’m hopeful the present trends of moderating infection rates and increasing numbers of vaccinations will lead to revised orders allowing us to fully reopen our offices. We are constantly monitoring this and will be ready to respond when state Executive Orders allow us to do so.

2020 Financial Results By this time, you have received the 2020 annual report. A summary of that report is included on page 25. In short, 2020 was a record setting year for your association despite being the most tumultuous year any of us have ever experienced. The following key results really say it all:

2020

2019

Growth (Accrual Ave. Daily balance) 13%

4.84%

Net Earnings (in millions)

$270.2

$206.4

Customer Satisfaction

95%

94%

Portfolio Credit Quality

2.69% (adverse)

3.51%

Loan growth surged well above 2020 budgeted levels and 2019 actual results as agribusiness customers drew down their lines of credit at the onset of the pandemic for liquidity purposes while our country living segment experienced a “tsunami” of new loan business for vacant land, refinancing, and new home construction due to historically low interest rates.

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We feel especially blessed this year to be able to give back another record setting patronage payment considering the challenges we all faced in 2020. service area in which GreenStone will award a total of $20,000. The results of the three donations are outlined on page 20 along with the winners of the great branch gift baskets!

Customer Satisfaction Survey

Net earnings were 30% above 2019 primarily attributed to record setting fee income from interest rate conversions, SBA PPP loan originations, and a significant reduction in the loan loss provision due to robust farm income in the second half of the year driven primarily from government assistance.

Thank you to all who were randomly selected to receive and responded to the customer satisfaction survey last fall. The 2020 survey was delayed for obvious reasons, and we are now back on our usual schedule of sending the survey in March. As such, a new group of randomly selected customers have now received the 2021 survey by mail and/or email.

Ultimately, these strong financial results not only support the foundation for a very strong risk bearing profile, but also serve as the basis for the record setting patronage payment for 2020. If you would like more information, please check out our 2020 Annual Report at www.greenstonefcs.com/2020annualreport.

To those who were selected, your feedback is taken very seriously by all of us at GreenStone including the Board of Directors, myself, and every one of our nearly 600 team members. PLEASE take a few minutes to complete it and send us your feedback.

Patronage 2021 A month ago our members received their share of this year’s $105 million Patronage payment, which represents approximately a 1.25% reduction in the interest rate for the average GreenStone member on their borrowings in 2020. The year’s patronage lifted the total paid to our members since the program began to $605 million! That’s a 16-year track record of returning profits back to you!

We feel especially blessed this year to be able to return another record setting patronage payment considering the challenges we all faced in 2020. As our annual report theme stated, we accomplished this milestone “together.” As I have said over and again, GreenStone is only as good as the members who call us their financial services provider.

Your loyalty to GreenStone and honoring your financial commitments is the driving force behind our collective success.

Each year we use these survey results to uncover areas for improvement, and to reinforce outstanding customer service. Thank you in advance for your participation in making your association relevant to your needs!

Closing I pray 2020 and 2021 will not only be remembered for the challenges, but rather the lessons these and other trials have taught us – like grace, kindness, resilience, faith, love, patience, humility, forbearance, and selflessness. This year is off to a much better start than many ever expected. How it ends is much more up to us individually and the attitudes we choose each day than it is the “things” that happen to us.

Best wishes for a successful planting season and thank you for your business! As always, feel free to reach out to me directly if I can ever be of assistance.

I also hope you were able to get involved in our first ever virtual “Patronage Week” celebration the week of March 8 with each day of the week having its own theme to highlight the #PatronagePays benefit and the value of working with GreenStone’s talented team members.

If you haven’t yet, take a minute to watch the videos from your local teammates – they have some important messages to share on their relationship working with customers! You can read more on this on page 23 in this magazine, and catch it all online at www.greenstonefcs.com/partnershippays.

Dave Armstrong

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

Like last year we also solicited your vote for one of three charities in our

Partners — Spring 2021

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Growth Opportunity Sometimes opportunities find you by happenstance. Such was the case for Eau Claire fruit and vegetable grower Kyle Froehlich, who in 2012 had a friend in real estate selling mainly residential homes.

Young, Beginning, and Small Farmer Feature

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“He started getting a couple farms in the mix, so he wanted me to stop by this farm and give him an idea of what it would or wouldn’t be good for,” explains Kyle, who was just getting his first year of solo farming under his belt.

Kyle, now 32, was not wrong about fiancé Jessica’s reaction, which led to an unplanned opportunity. “I said, I don’t know if we can get approved for funding, but this just seems right.”

The 40-acre farmstead with a home and barn was just three miles north of the fruit and vegetable farm he grew up on in Berrien Center. It was a bit rough. “The fencerows were all overgrown and it needed a lot of work,” Kyle recalls. “Out of curiosity I asked what the inside of the house looked like. I knew as soon as I walked in my fiancé, at that time, would just love it – it was a 115-year-old farmhouse with old barn beams and a very authentic and rustic feel.”

In his first year farming, leasing 25 acres from his grandparents, Kyle showed a small profit selling direct to consumers twice a week at two different Chicago farmers markets. His dad, Dean, suggested he approach GreenStone Farm Credit Services for financing, noting their keen insight into agricultural operations.

GreenStone is also able to partner with USDA’s Farm Service Agency to help growers utilize the Beginning Farmers and Ranchers Loans program.

➡K yle Froehlich poses next to the tomato plants that will soon be ready to harvest for upcoming farmers' markets.

View a highlight reel video at: www.greenstonefcs.com/YBSFSpring21

Partners — Spring 2021

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GROW

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For the first three years it was a lot of hard work, but it was more about staying focused.

trees, meaning the demand would surely drive prices. It looked like a promising start.

He went to work building a farming resume by raising a cornucopia of fruits and vegetables that first year.

His parents gave him space in their walk-in cooler, “which I was fortunate they let me do,” he adds.

His hope and ambition were soaring when Mother Nature notched it down a bit. Just two weeks prior to harvest, the apples he so vehemently cared for, were pummeled with hail and had to go into the lessprofitable juice market.

“I was so down. I remember my grandpa saying… ‘this happens, and it won't be the last time it happens,’” Kyle recalls. “After that year I told myself, if I can get through this year, I can do anything. And we've progressed every year since.”

Moving forward

“Even though the farm wasn’t taken care of, I could see its potential,” Kyle says.

“At that time, I approached GreenStone Financial Services Officer Tyson Lemon (who is now a regional VP of sales and customer relations). He explained everything, was very clear and made the process very easy,” says Kyle, who closed on the property three days before Christmas 2012.

Each year they invested in cleaning up and improving the farm they named Sunny Harvest Farms. “For the first three years it was a lot of hard work, but it was more about staying focused,” Kyle says.

“If the farm would have been in pristine condition, we probably would not have been able to afford it.”

Sunny Harvest Farms, which includes a woodlot, now has two high-tech, temperature-controlled 30-foot by 96-foot greenhouses Kyle built, which allow their heirloom tomatoes to reach consumers two months before field-grown tomatoes. The farm also includes six varieties of apples planted in high density, peaches, and high-density raspberries, along with open ground for vegetables and cut flowers.

“People who saw this place eight years ago wouldn’t recognize it now – we’re pretty proud of it,” Kyle says.

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Spring 2021 — Partners

Getting started

Kyle grew up on a fruit and vegetable farm in Berrien Center. At a young age he learned that farming was not for the weak or lazy, helping to establish a work ethic and principles he says remain with him today.

Growing up in agriculture and after graduating high school, he had sound footings to build on. After two years at Ferris State he transferred to Central Michigan, met Jessica, who would later become his wife, and graduated with a bachelor's degree in business management in 2012.

“My grandpa was still in farming at that time, but was wanting to get out, so I leased 10 acres of older apple trees and 15 acres of open ground from him and my grandmother.”

To step out of the classroom and into farming, the now engaged couple started making calls to plant suppliers. “Jessica had two years of school yet to become a special education teacher, but by doing this, I could still get a farm season under my belt right after graduation,” he says.

While the older apple trees were borderline profitable, a late frost in 2012 that decimated almost the entire apple crop in Michigan, somehow spared several of his

Kyle and Jessica were wed June 1, 2013, the summer after closing on the farmstead. In addition to her full-time, off-farm job at the Berrien Regional Educational Service Agency, Jessica works on the farm and also manages social media and the operation’s website.

They still lease Kyle’s grandparent’s ground, however, all but two acres of the apples were removed. They have leased other orchards along the way and are currently leasing 10 acres of apples in Niles. They also have a 25-year lease on four acres they planted to tart cherries.

Since they are trying to utilize every square foot they have, everything is planted high density.

“We have a couple acres of raspberries that we bought all new equipment to fit in between those raspberries – very small tractors,” Kyle says.

Transportation is vital

Kyle utilized several older trailers and trucks over the years to haul produce to Chicago. “I knew it was a matter of time before that truck would break down,” he says. “If that happened, we would lose all the payroll it costs to harvest, we would need to be towed and there would be a repair bill. Even so, my biggest concern was losing that connection with my loyal customers, who would have come to the market, not be able to find us and bought from my competition. Transportation is very vital to our business.”

Through GreenStone financing, Kyle bought a new diesel truck facilitated by Lemon’s successor Jeff Ginter, GreenStone Financial Services Officers in Berrien Springs.

“It was a nice, smooth, easy process,” Kyle says. “They understand, when you're selling retail, buyers have to get to know you and your product, and they need to fully enjoy both before they become loyal. It takes time and once you get that following, you have to keep striving to do better and better for them every year.”

Ginter says, “Greenstone is a good fit for Kyle and Jessica because GreenStone wants to help young farmers succeed. As the premier ag lender in Michigan, and we want to get to know our customers on a personal level, understand their operations, their needs and support them along the way. When he's working on a project, he calls Greenstone to talk through it and see if it makes sense. That’s exactly what we are here for. We don’t want to run or dictate the operation but rather help ensure its success.”

COVID opportunity

The idea of offering a Community Supported Agriculture program – home delivery service of fresh fruits and vegetables – had been mulling for about four years at Sunny Harvest Farms. “We wanted to start providing some produce to our local community,” Kyle says.

While COVID-19 brought much anguish, it also brought opportunity, as more people were at home eating. “It was a great year for us to start,” he says.

They started by advertising online and with flyers in the community. “We always had social media before, but this made us create a website for signups and payment,” explains Kyle, while adding that customers have the option of full-size or half-size produce boxes.

Delivery is weekly June through October and customers can consult a maturity chart online to see what is available throughout the season.

Customers can also pick add-on items. “All of our subscribers follow us on Instagram, where we post a picture of their box the day before delivery,” Kyle says.

“There were times when customers said they didn't know the item, but since they had it, they tried it and enjoyed it.”

Looking ahead

As Sunny Harvest Farms continues to grow, Kyle and Jessica are looking to build more storage and purchase a larger walk-in-cooler. But for right now, they are going to ride out the elevated lumber prices.

In the meantime, they are leasing space for this season.

Their family is also growing; they welcomed their fourth son, Tate, in December of 2020. He joins five-year-old twins Everett and Finn, and three-year-old Hayes.

➡S pecialized equipment driven by Kyle allows for easy care of raspberries planted in a high density environment.

“It’s busy but that’s how we’re wired – that’s how we want it,” Kyle says. “Thank goodness the boys are all good sleepers.” ■

Partners — Spring 2021

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YBSF RESOURCES–

GROW FORWARD GRANTS The future of the agriculture industry is largely dependent on the next generation of leaders and their ability to overcome the challenges of today’s market. To provide this pivotal cohort of diverse farmers with the educational opportunities and support necessary for success, GreenStone has once again committed up to $40,000 to young, beginning and small farmers through the cooperative’s 2021 Grow Forward Grant program.

“GreenStone’s grant program supports producers interested in gaining more education to prepare themselves to successfully compete in today’s highly competitive global marketplace,” said Dave Armstrong, GreenStone President and CEO. “Young, beginning and small farmers are vital to the economic health of agriculture and these grants help remove the financial barrier so they can focus on expanding their industry knowledge.”

GreenStone’s Grow Forward 9

Spring 2021 — Partners

Grants provide financial support to offset the cost of educational opportunities.

Individuals who qualify as young, beginning or small farmers and reside in Michigan or northeast Wisconsin can use grant dollars toward farm or business consultations, educational courses and seminars, resource-focused events or conferences, and first-time use of GreenStone’s tax and accounting services.

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.

John Gallagher, of Gallagher Farms in Cedar, Michigan, utilized the grant in 2019 for a distillation course to learn hands-on about commercial distilling. The course provided him in-depth knowledge on the steps needed to be taken on his five-generation cherry farm to create new value-added products and an additional stream of revenue through distillation.

“I would encourage anyone to take advantage of these opportunities no matter what your business is,” John says. “In order for our farm to continue to the next

generation, we know we need to improve and this is just one step in ensuring a successful transition for years to come.”

Again in 2021, GreenStone will be offering up to $40,000 through the Grow Forward Grant program to provide educational and learning opportunities to farmers.

To qualify for up to $1,000, applicants must be between the ages of 18 and 35, or farming for less than 10 years, or sustain annual gross sales from agricultural production of less than $250,000, in addition to residing in GreenStone’s territory. Both GreenStone members and non-members who qualify are encouraged to apply.

For complete guidelines and the application, visit www.greenstonefcs.com/ GrowForwardGrant. ■

YBSF RESOURCES–

FARM FORWARD MENTORSHIP The most impactful life lessons are often learned through experience, and what better way to gain experience-based knowledge quickly than through a mentorship with someone who has decades of life lessons already under their belt? program and looks forward to providing each of them guidance as they network and make connections in the industry.

“Anytime you can do networking between farmers - it’s a good thing! The reason we got going in our operation is because we networked when we first started and that really helped us along,” Mike explains. “I’m hoping I can give back to these young farmers like that so they can move forward with their farm operation.”

Through GreenStone’s Farm Forward Mentorship program, nine new mentees are doing just that- all while laying the groundwork for a life-long friendship and long-term networking opportunities.

GreenStone’s 18-month mentorship program pairs a young, small or beginning farmer with an experienced farmer of a similar commodity to learn from and use as a resource. Facilitated by professional business coaches and mentoring consultants, the program’s goal is to create a long-term learning opportunity for participants with a focus on creating an effective business plan, managing risk, utilizing resources and overseeing day-to-day operations.

GreenStone’s 2020-2022 Farm Forward Mentorship program, the fourth and largest group of participants since its inception in 2015, launched in February with a virtual program Kick-Off event. During the Kick-Off, program facilitators advised participants on creating an effective mentorship and genuine relationship. Following the virtual event, each mentor and mentee connected safely to visit and tour their partners farm and experience the different ways their farms operate.

Horticultural and row crop farmer Mike Fuisiler joined the program as a mentor to

share his years of knowledge. Paired with two separate mentees for the program, Mike’s years of hands-on experience will be a valuable resource to his mentees, Alex Ball and Bryce Calder. After meeting individually with both Alex and Bryce, Mike is optimistic about the

Throughout the program, mentors and mentees are encouraged to connect frequently for conversations to answer questions, 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. ■

YBSF RESOURCES– Having accurate information and beneficial resources is critical when managing a farm – especially as a young, beginning or small farmer. In addition to the grants and mentorship opportunities offered through GreenStone’s Young, Beginning and Small Farmer program, the resources below will become a valuable asset to your ongoing learning: • Varnum Agricultural Employment Compliance Guide. Created by Varnum Law in partnership with Adams Immigration Law, Great Lakes Ag Labor Services, Indiana Farm Bureau and Michigan Farm Bureau, this easy-to-use employee guide assists farm employers trying to keep up with federal and state employment laws. The guide provides practical information and answers commonly asked questions about employment law issues and can be found here: www.varnumlaw.com.

• USDA New Farmers website. Packed with information exclusively for individuals planning to start their own operation, the website and unique Discovery Tool is a valuable resource to turn to again and again. Visit www.newfarmers.usda.gov to learn more.

• Beginning Farmer Online Resources. Providing updated and relevant information to beginning and small farmers, Michigan State University Extension’s vast resources on starting a farm are organized by commodity, helping new farmers quickly digest valuable information. Find their articles, podcasts, publications, videos and updated events on their website: www.canr.msu.edu/beginning_farmer_webinar_series. ■

Partners — Spring 2021

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Spring Market Outlook:

Tracking Trends

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

The recent surge in commodity prices deserves top billing from a credit perspective so far this year given its direct impact to the financial performance of many ag producers and processors alike. Grain prices have increased markedly over the last few months due to strong international demand for U.S. corn and soybeans, particularly from China, and an expected small South American crop.

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Likewise, strong housing starts and home renovation activity has driven dimensional lumber futures over $1,000/mbf, up from $400/mbf in October. Hog, cattle, chicken and dairy prices have also seen run ups to varying degrees. While this recent commodity price strength has been a much-needed development for producers in several key segments, it has also meant rapidly rising feed costs for those in the animal protein space. Many of these borrowers face rising feed costs at the same time as weak foodservice/restaurant activity is hurting their top-line, creating a recipe for sharp losses. Ensuring adequate liquidity has become a primary concern for producers with commodity exposure, as swelling balance sheets can easily result in an unexpected “cash crunch”.

Whether commodity prices ultimately take another leg up or retreat from temporary highs as supply/ demand factors normalize remains to be seen, but the volatility experienced so far this year is top-of-mind for actors throughout the agricultural economy.

Much of the recent commodity price surge can be attributed to increased international demand for U.S. agricultural products.

This increased demand has varied from country to country, but increased demand from China in particular has been the key storyline in grain and livestock markets. Large purchases of U.S. grain by Chinese importers became more frequent starting in the fourth quarter of 2020, and the trend has continued into 2021. Demand for grains within China is strong at the moment for numerous reasons, including accommodative credit policies and the fact that their domestic hog herd is being rebuilt following the 2018 swine flu outbreak that upended the country’s food supply chain.

These large grain purchases have only been accelerated by the expectation of a light South American grain crop due to weather concerns. It should also be noted that a generally weakening U.S. dollar has been a tailwind for exports as well, making U.S. agricultural products relatively more competitive on the world stage. While exports to China have understandably received the headlines, U.S. agricultural sales to Mexico, Japan, Korea and other major trading partners also remain relatively strong. This strength is reflected in the USDA’s revised forecast for U.S. agricultural trade in FY 2021,

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with total ag exports now forecast at a record $157.0 billion, or an increase of over $21 billion (15%) from FY 2020. Exports to China in FY 2021 are forecast at a record $31 billion, reflecting strong shipments of U.S. soybeans, corn, wheat, cotton, and chicken paws in particular.

While the recent uptick in export demand is a welcome development for many in the ag community, prudence dictates caution. As anyone who has followed the Ag industry for long knows, commodity markets, and export demand in particular, can reverse course quickly when geopolitical factors change. For example, a strong U.S. growing season combined with more favorable weather in South America and changing internal factors within China could make the global grain situation look markedly different next year. While we are not saying that these particular events will unfold, it is important to remember that the size and unpredictability of the Chinese market make it a double edge sword for ag producers. While those operations with a commodity focus are undoubtedly benefiting from the recent runup in prices, prudent operators will take a long-term approach and lock in favorable margins at opportunistic times.

The current export demand surge aside, U.S. agricultural products remain well positioned on the global stage from a long-term perspective. A growing middle class throughout the developing world will increasingly demand new and expanded proteins in their diet, which poses a promising opportunity for U.S. agriculture in the years to come given its ability to produce a consistent, high-quality product at an affordable price.

Long-term interest rates have become a major variable from a macroeconomic perspective, as rapidly rising government bond yields have triggered increased concerns around inflation. While consumer price and interest rate trends are worth monitoring closely, it is important to note that the global economy has been operating in a low interest rate/low inflation environment for decades, meaning that while interest rates have begun to rise they are starting from near zero and remain at relatively low levels from a historical perspective. Given that fact, a moderate rise in government bond yields and inflation expectations can

Much of the recent commodity price surge can be attributed to increased international demand for U.S. agricultural products.

This increased demand has varied from country to country, but increased demand from China in particular has been the key storyline in grain and livestock markets.

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Most forecasters are anticipating that the labor market will continue to gradually improve throughout the year as the economy reopens from COVIDrelated lockdowns.

reasonably be viewed as a sign of optimism around long-term growth expectations for the U.S. economy. That being said, a record expansion of the monetary base, rising raw material costs and an accommodative credit environment all make consumer price metrics worth monitoring closely.

The labor market continues to recover gradually, with service sector jobs in the entertainment, leisure and hospitality segments continuing to show the most weakness. At this point excess slack in the labor market is the biggest factor leading many economists to downplay the concerns around medium to long term inflation discussed above. Most forecasters are anticipating that the labor market will continue to gradually improve throughout the year as the economy reopens from COVID-related lockdowns. The housing market deserves mention as well, as both

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new single-family starts and existing home sales remain robust. While the residential housing market is generally stable, homebuilders are increasingly warning that rising raw material costs could begin to limit new build activity, a development which would push more prospective buyers into an existing home marketplace with already low inventory levels. Mortgage rates will be a key factor for the housing market as well, as the recent uptick in interest rates has begun to filter through to the residential mortgage market. While mortgage rates remain extremely low from a historical perspective, if they continue climbing it could put a damper on the demand side of the housing market at some point.

While overall business bankruptcies in the U.S. have actually trended lower over the past year (thanks in large part to

government support), we continue to see borrowers in various industries that are facing stiff headwinds due to COVID and the related travel restrictions. In particular, those producers/processors with a heavily food service/restaurant-oriented business model have suffered disproportionately as Americans have shifted to eating more of their meals at home. Given steady vaccination progress there is increased optimism in the marketplace that restaurants and other affected businesses will be able to ease capacity restrictions and return to a more normal operating environment by the second half of the year.

The continued reopening of restaurants and other customer-facing businesses, combined with easing travel restrictions, could have positive downstream effects throughout the economy and fuel strong economic activity for the remainder of the year. The record amount of stimulus provided to consumers in 2020 could also drive robust consumer spending during the second half of the year, as the relatively high savings rates seen over the last year give way to a return to more normal discretionary spending patterns. ■ SOURCES: www.cmegroup.com www.inquirer.com www.farmpolicynews.illinois.edu www.farmprogress.com www.usda.gov www.ers.usda.gov www.bls.gov www.latimes.com www.statista.com www.bloomberg.com

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AGRICULTURE – OPEN FIELDS BLOG BRIEF GreenStone publishes regular updates on our Open Fields blog. Check out some of the posts you may have missed at www.greenstonefcs.com/openfieldsblog.

Building Connections as an Ambassador Lauren Heberling, a customer service representative in GreenStone's Sandusky branch, has utilized her background to foster positive consumer conversations surrounding agriculture.

Commodity Update: Timber As the industry heads into spring breakup, there is a lot weighing on the minds of loggers, log truck drivers, mills, and timber stand owners alike. Get an industry update from GreenStone's expert Cameron Rowe, financial services officer in Escanaba.

Sand Creek Dairy Sand Creek Dairy LLC has ensured the longevity of their farm through practices that positively impact their land and animals. “We have all been taught from a young age that in farming we need to do what’s right. If we take proper care of our land and water, it will take care of us,” said Ethan Haywood.

Dr. Kohl: Family Business Transition Checklist A checklist for young people to consider before returning to the family business.

Applying for a Loan? Tips for First-Time Borrowers!

Your GreenStone team, Jennifer Whitford, VP of Lending, and Chad Zagar, VP & Managing Director of Tax & Accounting, share these five tips to keep in mind to help make your first loan application process a smooth one! ■

Partners — Spring 2021

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Ask for AgDirect Equipment Financing Built for agriculture, powered by Farm Credit Agriculture is constantly changing and so is the ag equipment market. In today’s high-cost, high-risk environment, securing the right financing options is just as important as equipment selection, operator training and ongoing maintenance and repairs.

For more than a decade, GreenStone has partnered with AgDirect®, one of the fastest growing equipment financing programs in the nation, to offer competitive loan, lease and refinancing options as an alternative to manufacturers’ captive equipment financing and local lending sources.

Through this partnership, GreenStone customers can count on attractive rates, fast decisions and flexible terms regardless of the equipment brand or where they choose to buy. Because AgDirect has no manufacturer rebate or financing

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Spring 2021 — Partners

restrictions, customers can also take advantage of manufacturers’ cash payment discounts and still finance though the AgDirect program, allowing them to leverage the best of both worlds.

“One of the reasons AgDirect has been successful is its connection to the Farm Credit System,” says Scott Welden, an AgDirect territory manager in Michigan, Indiana and Ohio. “It’s rewarding to see the positive impact we make on the producers, dealers and partners we work with, and see AgDirect earnings help participating Farm Credit System associations pay patronage.”

Currently, AgDirect is offered by 16 participating associations of the Farm Credit System. Together, association partners serve more than 250,000 customers and generate over $100 billion in originations annually.

A variety of options to meet your financing needs

AgDirect has loan, lease and refinancing options available for both new and used equipment purchases completed at the dealership, at auction or through private party transactions.

To apply, participating AgDirect dealer salespersons simply enter the customer’s financing application online. A dedicated financing team and network of AgDirect territory mangers are available to assist with auction or private party purchases, and can help both dealers and producers with quoting and selecting the best financing solutions.

Dedicated to the customer experience

Another way AgDirect gives customers a competitive edge with their equipment financing is by offering a suite of digital tools and online resources that improve efficiencies, accelerate transactions and give producers more time to focus on what matters most in their operations.

“

It’s rewarding to see the positive impact we make on the producers, dealers and partners we work with, and see AgDirect earnings help participating Farm Credit System associations pay patronage.

Other key features include access to real time interest rates, a downloadable lease residual matrix, cost/hour versus cost/acre comparisons, and the ability to save and compare finance options, or email and text payment quotes.

submitted and approved, customers can also count on quicker closing and funding for their equipment using eSign, an electronic signature process that can take place at the dealership or any location using a mobile device.

Another convenient tool for estimating costs and comparing payments includes AgDirect’s easy-to-use online payment calculator available at agdirect.com. In a matter of minutes, customers can estimate their annual, semiannual, quarterly, or monthly payments by entering the equipment price, interest rate, terms, payment frequency and amortization type.

* Your mobile carrier’s message and data rates may apply. **Excludes leases over $500,000. ***Farm Credit System debt is ineligible for refinance.

AgDirect is an equipment financing program offered by Farm Credit Services of America and other participating Farm Credit System Institutions with lease financing provided by Farm Credit Leasing Services Corporation.

After an AgDirect application has been

NOBODY FINANCES AG EQUIPMENT LIKE AGDIRECT – Subject to approval, there are several advantages to choosing AgDirect equipment financing: • Down payment options as low as $0 down on certain types of assets.

• Financing terms on new and used equipment from 2-7 years.

“It goes back to our focus of serving agriculture’s machinery and equipment financing needs,” Scott says. “All of our digital tools serve a fundamental purpose of maintaining that focus while creating flexibility, faster turnarounds and a sense of convenience.”

• Up to a 10-year term on pivots.

For example, the free AgDirect Mobile app available to download allows users to calculate individual payment quotes and compare payment options side-by-side from their mobile phone or tablet*.

• No prepayment penalties.**

• Variable or fixed rates with the ability to convert options.

• Flexible payment structures that align with a customer’s cash flow.

• Simple refinancing process for lowering rates on existing debt with a manufacturer or other equipment lender.*** The right equipment financing partner can help you remain competitive and profitable. Ask your financial officer about AgDirect or learn more about AgDirect equipment financing options by locating your nearest AgDirect territory manager or contacting the AgDirect financing team at 888-525-9805.

• Delayed payments up to 15 months.

• Cash discounts offered by the manufacturer with an AgDirect rate.

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Environmental Issues Re-Debated and Emerging Environmental Issues

By Alan Hahn Environmental Scientist

In discussing the ongoing debate surrounding “regulated waters” last fall, we said, “…the federal elections may play a significant role in the future of WOTUS/NWPR (Waters of the United States/Navigable Waters Protection Rule). The Obama Administration took a far-more conservative approach to jurisdictional water when they issued the 2015 rule, compared to the current rule under the Trump Administration” (Greenstone Partners, October 15, 2020).

True to form, with the new administration comes another potential change in direction with respect to regulated waters. According to Bloomberg Law, “President Joe Biden set the WOTUS pendulum swinging again on Jan. 20.

That day, he announced that the EPA and the Defense Department would review Trump’s narrow federal waters definition. Biden also signed a separate executive order revoking a 2017 Trump order calling for a review and reversal of the Obama rule.”

Water is the Lifeblood of our Society/ Economy

Our country has debated the definition of jurisdictional or regulated waters for decades.

It’s no small question and it has plenty of politics baked into the debate. Too restrictive 17

Spring 2021 — Partners

and development and agricultural practices could be handtied to the extent it severely stifles growth. Too lenient and we risk impacting the lifeblood of our society and economy – clean and plentiful water.

This is one of the many environmental issues about which we have written over the years for the agricultural community.

Environmental Issues are Dynamic

The truth is, environmental issues and mankind’s activity are inexorably linked. This is true for manufacturing, our daily lives, and perhaps more than anything – agriculture.

We need clean air, clean water, and healthy soil. But this doesn’t just happen. We don’t want to return to the days when pollutants were recklessly strewn about, dumped outside the backdoor, buried on a remote area of the property, or used to fill a hole.

Environmental regulations are not stagnant.

New laws and regulations are developed as we learn more about the potential effects of natural and man-made chemicals on human health and the environment.

PFAS Are Affecting Everyone

The most recent example of waste products being mismanaged (or ignored) is per- and

polyfluoroalkyl substances (PFAS). Several farmers were directly impacted by these chemicals including farmers in Maine, New Mexico and West Virginia. My colleagues and I have written and spoken on this issue extensively over the past few years.

As frustrating as WOTUS has been, PFAS and its impact on agriculture could dwarf WOTUS; briefly, here’s why.

• PFAS have been used in industrial and consumer products for decades (waterproofing materials, stain resistant fabrics, food wrappers, cooking utensils, cleaning products, waxes…the list is lengthy).

• The firefighting foam Aqueous FilmForming Foam (AFFF) contains PFAS and has been widely used at airports. Because AFFF is sprayed with large amounts of water on fires it can easily enter the environment and impact groundwater.

• PFAS are ubiquitous. They are found on nearly every corner of the earth and in our bloodstream.

• There are thousands of PFAS chemicals, and we’ve have only focused on a few of these chemicals.

• They are believed to pose health hazardous in very minute levels (parts per trillion level - ppt). A ppt is equivalent to 1 second over 31,500 years.

• They are persistent in the environment (they don’t break down easily).

• The most common way farms have been impacted by PFAS is by proximity to a facility that manufactured, used, or released PFAS. PFAS can travel with the groundwater and impact nearby water supply wells.

• They can also enter a farm by way of biosolids (from years past or present).

Even if you didn’t land apply biosolids, it’s possible that your neighboring farm did, and PFAS associated with those soil amendments could enter the groundwater and impact your farm.

• If your farm is impacted, it could render your water, crops, livestock, milk, and land worthless.

This isn’t intended to frighten anyone, but to make you aware of an important environmental issue. If you want to learn more, we have established two different Resource Pages on our website: AgriculturalEnvironmental Resources and PFAS

“

Many states, including Michigan, have taken it upon themselves to establish their own standards.

Resources, both are available from our home page (dragun.com).

Michigan Establishes PFAS Limits

We still have a lot to learn about how PFAS effect human health in the environment. If there is some good news, it’s that, according to the Agency for Toxic Substance and Disease Registry, blood levels for certain PFAS are dropping (as some are phased out).

What to Expect from the Biden Administration?

The new administration has not yet released its environmental priorities. How the current administration attempts to redefine regulated water will be carefully watched, and if it does change, we need a carefully crafted definition based on science, not politics.

Moreover, proper management of the environment is not just a good idea, it is essential for humans to flourish. What often complicates our approach to these matters is the conflating of environmental issues and political issues. ■

Complicating the issue of PFAS is we still lack federal standards from the Environmental ABOUT THE AUTHOR Protection Agency. Many states, including Alan Hahn is an Environmental Professional and Michigan, have taken it upon themselves Business Development Manager at The Dragun to establish their own standards. Michigan Corporation in Farmington Hills, Michigan. established “maximum contaminant levels” for seven PFAS chemicals and they are some of The opinions stated herein are not necessarily those the strictest in the nation. of GreenStone Farm Credit Services.

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MAEAP PROGRAM SUPPORTS FARMERS With over two decades of helping farmers and nearly 6,000 verifications, the Michigan Agriculture Environmental Assurance Program (MAEAP) continues to be an impactful and voluntary environmental program for Michigan farmers. This innovative program was established in 1998 to assist farms in preventing or minimizing agricultural pollution while simultaneously recognizing the operations that take an environmental initiative to be good stewards of their land.

“I want to do everything I can, and so does my team, to help protect farmers and allow them to continue farming economically and profitably, all while following the necessary guidelines and regulations,” says Joe Kelpinski, Program Manager for the Michigan Department of Agriculture and Rural Development (MDARD), Environmental Stewardship Division.

As an industry under constant scrutiny, taking additional steps to showcase how your farm’s operation is environmentally conscious through a MAEAP verification can help relieve some of the increased pressure placed on farmers by consumers and the public. Becoming verified also gives you peace of mind knowing you are protecting the environment and reducing your impact on the land. As leaders in the agriculture industry, it is crucial farmers take the initiative today by implementing cleaner, environmentallyfriendly practices on their operation to ensure a cleaner, safer tomorrow.

obtain two hours of environmental education by attending a meeting or workshop that qualifies as a MAEAP phase one meeting. A list of upcoming education sessions can be found on www.MAEAP.org.

and help farmers work through issues on their farm,” Joe explains. “Farmers are free to implement their plan’s recommended steps on their own time and are encouraged to use our technicians as a resource.”

Phase II: Risk Assessment. Schedule a meeting with a local conservation district technician to evaluate the current practices in place and assess your farm. During this initial visit, the technician will complete a risk assessment and identify which practices are a high, medium or low risk. After the visit, technicians develop a plan of action tailored to the farm, clearly laying out the steps necessary to reduce any possible risk. Farmers can work on their own time to complete the proactive changes.

The cost to become MAEAP verified varies from operation to operation depending on a wide variety of factors. The size of a farm, the current practices in place and the different type of verifications the operation is trying to complete all impact the cost to becoming verified. Although there is no cost to have a conservation district technician visit your farm and the recommendations from the technicians are complimentary, there may be costs associated with the changes made to the operation.

Phase III: Farm Verification Visit. After working with a technician to ensure all changes and recommendations have been made to reduce risk, another farm walk-through is scheduled to verify environmental assurance.

“We want to help farmers do a better job.

We have incredible and experienced field staff who are able to provide really good solutions

“We can’t farm with zero impact on the Earth, but we can certainly make changes and take steps to minimize the impact we are making,” explains Joe. “That’s where MAEAP comes in.”

For more information on getting MAEAP verified, visit www.MAEAP.org. ■

Divided into four systems, Farmstead, Cropping, Livestock, and Forest, Wetlands and Habitat, each verification process focuses on protecting natural resources by using environmentally sound practices and assessing potential risks. While each system looks at different practices depending on site-specific management, the steps to become verified for each of the systems can be done through the same three-phase process.

Becoming MAEAP Verified Phase I: Environmental Education. To begin the verification process, farmers need to

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➡L aura and Russ Braun practice MAEAP verified processes on their farm in Clinton County, MI.

CONNECT

NEWS: services, and support to assist struggling families. The dollars received through GreenStone’s Member Grown Outreach program will support their continued mission of caring for the community. $6,000 – The F.R.E.S.H. Project Located in the Shawano and Menomonee Counties in Wisconsin, The F.R.E.S.H. Project brings nutritional and fresh produce to their local communities while increasing consumer awareness of local farmers. F.R.E.S.H. stands for food, resources, education, sustainability, and health. Their team of volunteers are dedicated to educating families and individuals on the benefits of healthy eating, in addition to teaching about the importance of where that food comes from and the farmers who produce it.

Dollars donated support the organization’s goal of feeding more families and providing knowledge on healthy eating and the importance of buying fresh, produce from local farmers. $4,000 – Macomb Charitable Foundation

MEMBER GROWN OUTREACH RECAP In celebration of the record-return of $105 million to members in Patronage payments and the many ways #PartnershipPays with GreenStone, the cooperative once again committed $20,000 to the local community through the 2021 Member Grown Outreach program. These dollars directly support local organizations and their mission of bettering the communities in which GreenStone members reside.

Both members and employees had the opportunity to get involved to help select the organization and determine how the $20,000 donation would be divided.

Employees kicked off the program by nominating organizations aligned with GreenStone’s focus. Of those, three were selected for members to vote on: The Father Fred Foundation, Macomb Charitable Foundation and the F.R.E.S.H. Project.

Starting Patronage Week, March 8, and running through March 19, members were invited to cast their vote online. After tallying the votes from members, we are proud to announce the final results of the 2021 Member Grown Outreach Program:

$10,000 – The Father Fred Foundation The Father Fred Foundation, headquartered in Traverse City and serving five local Michigan counties, Antrim, Benzie, Grand Traverse, Leelanau, Kalkaska, is a foundation focused on caring for people in need and sharing their services to provide the best care possible.

They offer food, clothing, financial

Serving Macomb, Mich., the Macomb Charitable Foundation is a non-profit organization focused on assisting children who live at or below the poverty level.

They provide financial services to assist with transportation and unpaid bills, temporary housing, supplies, food, clothing, education and essentials.

GreenStone’s donation will allow them to focus on their mission of not just providing each child a better life, but a life filled with genuine kindness and humility.

GreenStone remains committed to members and our local communities and is honored to have played a small role in helping these local organizations serve our neighborhoods. ■

We would also like to extend a thank you to all members who participated in the voting process helping make this year’s Member Grown Outreach program a success! Members who participated in the online voting were entered in a drawing for a chance to win the gift basket from their local branch valued at $105.

Congratulations to the winners!

For more information on GreenStone’s continuous support of agriculture and rural communities, visit www.GreenStoneFCS.com/community.

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Construction Seminars

This past winter, GreenStone hosted multiple construction webinars to safely connect with nearly 150 individuals interested in building a new home. Led

by GreenStone’s country living financial services officers, attendees had the opportunity to meet virtually with a local expert and ask them questions during each live event. Packed with relevant and timely information, each virtual session covered the home construction process from start to finish, including these topics: • Determining which selections will add value to your home • Considerations for do-it-yourself or hiring a contractor • Financing options for your project • Loan approval process

If you missed this year’s construction events, contact your local GreenStone branch to get more information for your individual needs or visit www.GreenStoneFCS.com/ ConstructionWebinar to review recordings of each virtual event. ■

• A legislative update and an update from local mills

Logging Forum

Now a year into the Paycheck Protection Program (PPP) facilitated by the Small Business Administration (SBA), GreenStone continues to be committed to supporting our customers in submitting both PPP loan and forgiveness applications.

To continue providing loggers and individuals in the timber industry relevant industry education and updates, GreenStone recently hosted a virtual Logging Forum.

This online webinar was free to attend, and attendees earned four SFI points learning about the following topics:

If interested in attending a logging forum next year or learning more information, please visit your local GreenStone branch. ■ PPP Update

• Accounting, record-keeping and business planning • Master Logger certification training information

Read more on GreenStone’s 2020 support of PPP in GreenStone’s 2020 annual report! ■ NAMA Award

In 2020, GreenStone waded through the SBA program changes to smooth the path for 1,500 customers to secure $145 million in PPP support.

With the addition of round 2 of funding in 2021, originally scheduled to close March 31 and now extended through May 31, an additional 3,000 customers have secured another $73.5 million in PPP loans thus far.

• Equipment financing

term success of our customers.

That’s why we remain committed to supporting our members through this process and being a champion for them with the SBA PPP.

In spite of the changing guidance and challenges aligned with facilitating these loan applications with SBA, we recognize the financial support provided through the program is critical to the short-

GreenStone was recently honored by the National Agri-Marketing Association (NAMA) with a Regional Best of NAMA first and merit award for their 2020 annual report and Patronage Day Celebration campaign.

The Best of NAMA award program honors the best work in agricultural communications. ■

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.

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April Paul Engler Laura Tribley Shiela Fowler Shannon Elliott Mary Paquette Toni Sorenson Lisa Stachnik Mary Stevens Karen Spaeth

5 5 5 5 15 15 15 35 40

May Reid Curry 5 Becca Middaugh 5 Doug Abel 5 Matthew Bowen 10 Clinton Huhn 15 Mark Klett 15 Brian Polega 15 Michelle Backhaus 15 Jeff Sommerfield 35 Kevin Emison 35

June Rachel Wood Tara Parr Michael Spalding Kathleen Beebe William Eva Nikki Wilcox Amber Schultz Tara Ozbat Rita Robinson

5 10 10 15 15 15 15 15 20

James Byars Melissa Koehler Heather Sackett David Armstrong

35 35 35 40

CIRCLE OF EXCELLENCE RESULTS GreenStone employees take pride in providing members with guidance and the best service possible.

Each year the sales staff who were among the top performers within the cooperative, along with the critical support team who work with them, are recognized in the Circle of Excellence Rewards and Recognition Program. This is just one way GreenStone acknowledges these dedicated individuals and their hard working support teams. Various criteria such as loan and revenue growth and new business are taken into consideration when ranking the achievements of sales staff.

The following outlines the top GreenStone staff and teams recognized as the 2020 Circle of Excellence award winners: Platinum Award Winners

Gold Award Winners

Agricultural Financial Services Officers:

Agricultural Financial Services Officers:

Sales Leadership: Ann Allen, North Region

Jennifer Whitford, Alma

Jake Moegle, Sandusky

Nathan Buning, Cadillac

Shaun Gainforth, Caro

Robert Netrefa, Northeast Wisconsin Region

Mark Dingee, Cadillac

Matthew Platte, Ionia

Devin Roth, Heartland Region

Derek Tahaney, Allegan

Amanda Kroll, Manitowoc

Tim Tanner, Southeast Region

Matthew Willbrandt, Schoolcraft

Mark Oberlin, Lakeview

Mitchell Schafer, Grand Rapids

Travis Bratschi, Traverse City

Country Living Financial Services Officers:

Ashlee Guerrero, Ann Arbor

Devon Feldpausch, Hart

Brent Voss, Traverse City

Miranda Kelle, Lapeer

Aaron Hartman, Hastings

Nichole Wilcox, Non-Dairy

Elizabeth Waldschmidt, Berrien Springs Referral Champion Elizabeth Waldschmidt, Berrien Springs Achievement Award David Moll, Adrian ■

Country Living Financial Services Officers:

James Cole, Howell

Commercial Lending:

Crop Insurance Specialists:

Tax and Accounting MVP Award:

Commercial Lending: Kyle Hurley, CLU Non-Dairy

Sales Leadership: Jeff Sommerfield, CLU Non-Dairy

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PATRONAGE WEEK RECAP During Patronage Week, March 8-12, GreenStone had the opportunity to showcase the many ways partnership pays for our members who place their trust in this cooperative every day. This year, GreenStone returned $105 million to customers across the association.

OUTREACH AND ENGAGEMENT GreenStone understands serving rural communities and agriculture means more than financing, and our commitment extends beyond providing credit and financial services. Together with our employees, we work to support these communities and actively demonstrate this through our time, resources, and financial contributions.

Here are just a few of the ways GreenStone made an impact over the last few months:

Loan Preparation for New and Beginning Farmers

Women in Agriculture: Taking a Seat at the Table with Confidence

This past winter, the Michigan Good Food Fund teamed up with GreenStone, USDA Farm Service Agency and Northern Initiatives to provide an informational four-month webinar series to guide farmers through the process of applying for a loan.

In honor Women’s History Month, GreenStone teamed up with Michigan State University Extension to recognize and applaud the many ways women contribute to the success of the agricultural industry during a free, 90-minute webinar on March 31.

Together we...achieve more!

“Very few of life’s accomplishments can be done solo. None of us have all the required knowledge and skills necessary to achieve excellence. Plus, it’s a lot more fun to celebrate your successes with teammates who made the journey with you than it is to celebrate individual wins by yourself.

Together, just makes us all better!” says Dave Armstrong, GreenStone president and CEO. We were eager to celebrate our partnership with our members online during the weeklong celebration, sharing messages from familiar GreenStone faces, like Dave’s, and giving back $20,000 to staff nominated organizations through our Member Grown Outreach program.

Members who casted their vote were also entered in to win a gift basket valued at $105 from their local branch.

This years’ theme of partnership and togetherness was fitting due to the hurtles faced and successes achieved over the last year.

Together we thank our members for another year of strong partnership! ■ 23

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The virtual event kicked off with guest speaker and GreenStone VP of Commercial Lending, Nicole Wilcox, discussing how to defy stereotypes and have confidence as a woman in a historically male-dominated industry. Following her presentation was a live Q&A panel with female farmers who overcame challenges and learned how to take a seat at the table with confidence.

Included on the panel was GreenStone’s board member, Laura Braun. Check out page x in this publication for more on Laura’s experience being a woman in agriculture!

During the free webinar series, Loan Preparation For New and Beginning Farmers, GreenStone shared an overview of what to expect when applying for a loan as a beginning farmer, the importance of having up-to-date accounting, and the resources offered in GreenStone’s Young, Beginning and Small Farmer program.

The USDA Farm Service Agency and Northern Initiatives also provided valuable information on where to begin when looking for financing options and what to expect during the application process.

For more details on the webinar series, guidance on applying for a loan, and information on upcoming events, visit www.GreenStoneFCS.com. ■

LET YOUR VOICE BE HEARD One of the many benefits of belonging to a cooperative is the opportunity to have an influence on the leadership of the association.

As part of that, GreenStone members will soon have the opportunity to participate in selecting which members will serve on the association’s board of directors and nominating committee through the annual governance elections.

On a four-year term basis, board seats in specified voting regions are voted on by those regions. This year, region 3 (covering southeastern Michigan) will be electing two directors to the Board of Directors.

In addition, nominating committee members will be elected for all seven voting regions. Because this is an annual election, and regardless of where members reside, each year all members vote for the nominating committee representatives in all seven regions.

To simplify the voting process, members will have the option of submitting the ballot online or by postal mail. Starting May 3, each member will receive their ballot in the mail; ballots will also be sent by email to those members who have provided

their email address. Members can choose the voting method most convenient for them.

Voting instructions will be printed on each ballot for online or mail in voting. Nominees have been selected for all positions. Director candidate biographies will be included with the ballots for voting members in Regions 3. Director biographies can also be viewed when voting online or by visiting GreenStone’s website.

Nominating committee biographies are not provided in coordination with Farm Credit’s election regulations.

All ballots must be received by midnight on June 8, 2021.

For more information about the election and the cooperative’s governance, go to our website www.greenstonefcs.com/elections to meet the candidates. If you are interested in being considered for a director or nominating committee position, please visit www.greenstonefcs.com/governance and complete a profile form to express your interest. ■

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WE DID IT TOGETHER… GreenStone’s 2020 annual report outlines the success found through partnership with members.

GreenStone is thankful to its partnership with members for the success of the last year as outlined in its 2020 Annual Report.

The report details the recordlevel earnings the association experienced last year, made possible by customers who faced the challenges side by side and embraced the cooperative’s efforts to provide financial solutions.

“Ultimately, the combination of 2020’s exceptionally strong loan growth, fee income from proactive lower interest rate conversions and unanticipated support programs, plus low loan losses provide a strong sign of GreenStone’s financial strength and commitment to provide real value to our members even in tough times,” says Dave Armstrong, GreenStone CEO and president.

“While 2020 will be remembered for one of the worst crises of our time, it will also go down as one of the best in GreenStone’s history to date, because of our

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commitment to our members, AND most importantly, their commitment to us!”

The cooperative’s financial strength and overall success in 2020 led to a record Patronage return of $105 million, distributed to its members earlier in March 2021. This year’s payment brings the total Patronage returned to members to $605 million since the program’s inception in 2005.

Overall financial highlights in this year’s report include:

customers to achieve success together: 1) Together customers and employees overcome technology adoption for improved service, safety and efficiency; 2) Together they benefited through cost savings from loan conversions and reduced interest rates; and 3) Together they connected while securing Paycheck Protection

Program funds at a time of urgent need.

“It’s been a rollercoaster year, with significant challenges and equally steep opportunities,” Dave shares. “But we got through it successfully because we did it together.”

The 2020 annual report was mailed or emailed to all stockholders on March 31, 2021. It can also be viewed here: www.greenstonefcs. com/2020annualreport. ■

• Net Income: $270.2 million • Total Assets: $11.1 billion • Total Loan Growth: 12.2 percent • Patronage Paid: $105 million Highlighted among these financial results in the annual report are firsthand accounts of the cooperatives experiences of 2020.

Through the eyes of employees, the stories unfold of three unique ways GreenStone partnered with

View a highlight reel video at: www.greenstonefcs.com/2020ARVideo

Mark Your Calendar...

APRIL

19

GreenStone Annual Meeting Virtual Event

19

Michigan FFA State Convention Virtual Event

“

MAY

3 31

GreenStone Election Ballots Mailed to members

9

GreenStone Election Ballot Voting Deadline

14

Wisconsin State FFA Convention (14-17) Alliant Energy Center, Madison WI

22

Michigan 4-H Exploration Days (22-24) Virtual Event

”

— Maury and Nancy Kaercher Michigan Sheep Producers Association

“

On behalf of the Michigan State University community, I thank GreenStone Farm Credit Services for the gift of $25,000 for the FFA Foundation. Because of the resources we receive from partners like you, MSU is better able to pursue its mission as the world’s pioneer land-grant university. We are grateful for your support of our efforts.

The university will be strengthened because of your generous contribution.

Thank you for investing in Michigan State University.

— Marti K. S. Heli Vice President for University Advancement

JULY

5

Again thank you for your support of MSPA

GreenStone Offices Closed for Memorial Day

JUNE

Your contribution… demonstrates your continued support of the sheep industry. Usually we have an auction that raises funds for youth scholarships, but because of COVID-19 that wasn’t possible. Instead, individual sponsors/donors contributed financial support and by doing so we were able to raise approximately $2,100 that will give 2 young people each a $1000 scholarship in 2022. A tremendous compliment to you and a great example of your support.

GreenStone Offices Closed for Independence Day

15

Michigan Dairy Expo (15-19) Virtual Event

20

Wisconsin Farm Tech Days (20-22) Huntsinger Farms, Eau Claire, WI

21

Michigan Livestock Expo (21-24) Branch County Fairgrounds, Coldwater, MI

27

Michigan Livestock Expo Sale-abration

“

”

Your contribution helps to enhance and expand the Wisconsin 4-H program both within your county and throughout the state. That’s why I wanted to pause for a moment to acknowledge your gift of $15,000.

With your help youth develop confidence, life skills and leadership experience. With your support, the Foundation can continue to provide funds to grow our 4-H program across the state. And with your involvement, 4-H can continue to be the best youth development program in Wisconsin.

”

Thank you for your support and thank for being one of the Foundation’s valued partners.

— Brenda Scheider Executive director of Wisconsin 4-H Foundation

...Candid Comments

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BEHIND THE SCENES In this behind the scenes, two GreenStone employees from the Marketing and Public Relations Department speak about how their daily work supports customers and improves the overall customer experience.

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Spring 2021 — Partners

Amber Echlin 1.5 Years Public Relations Specialist East Lansing, MI Describe how your role carries out the GreenStone mission of supporting rural communities and agriculture.

As GreenStone’s PR Specialist, I coordinate sponsorships, strengthen programs for our members and develop partnerships with organizations who have a similar mission as GreenStone and our customers.

Bill Eva 15 Years Creative Lead East Lansing, MI Describe how your role carries out the GreenStone mission of supporting rural communities and agriculture.

As a cooperative, GreenStone views it’s role through the lens of partnership. This approach relies heavily on effective communication. When we need to connect with an audience, I help craft messaging and look for the most creative way to reach those individuals. In the end it’s about communicating with purpose and creating a connection that supports our collective goals.

As the co-chair of our Young, Beginning and Small Farmer (YBSF) Champion Committee, I strive to minimize the challenges many YBSF face by providing a reliable source of credit and preparing our customers for success by helping educate them on critical business practices. A key focus for our committee in 2021 is to strengthen our program from the inside out – ensuring our staff are equipped with the best information to continue assisting and supporting the next generation of agriculture.

What do you enjoy most about your role at GreenStone?

The marketing team serves as a strategic partner for every segment of GreenStone’s business. As such, the scope of projects I work on is quite vast. This provides me with an opportunity to work as a creative in a variety of ways. More importantly, it affords me the privilege of working with a diverse and talented group of individuals each day. I count myself lucky to be a part of this team.

Being involved with many different projects and programs at GreenStone means I get to connect with GreenStone employees from different branches and departments. Whether I’m working on improving our internal communications, brainstorming with our YBSF champions, or being challenged to transition in-person events to an online platform, my day-to-day role is rarely the same and it keeps work exciting! By working with staff from different roles, I get the chance to learn more about how they support our members and how I can assist them in doing so. This also means that I am constantly shifting gears and learning as I go – something that I love!

What changes have been incorporated in your role to meet evolving customer needs?

What changes have been incorporated in your role to meet evolving customer needs?

In my time at GreenStone, the landscape of marketing and communications has experienced a huge transformation. With the advent of new technologies and social platforms, the ways we communicate has expanded exponentially.

This impacts the tools we use and the content we create. Our approach is always shifting and responding to the changing needs of our customers.

As most of the world transitioned to a virtual format last spring, so did many of the events and tradeshows I support. This challenged us to find creative ways to improve the experience of our customers and members while still connecting with them safely.

I’m grateful work alongside GreenStone’s marketing team and improve the experiences of our customers.

What do you enjoy most about your role at GreenStone?

What do you enjoy doing in your free time?

About four years ago I took up running after signing up for a duathlon. What started out as a bucket list item has turned into a year-round addiction. In addition to logging running miles, I enjoy biking and camping in “The Great Lake State” with friends and family.

What do you enjoy doing in your free time?

I love the outdoors and in my free time you’ll usually find me walking my two dogs around town, kayaking in mid-Michigan, or visiting local parks to hike trails. With summer around the corner, I’m currently preparing for a garden and plan to spend lots of time these next few months maintaining my garden and landscaping the flower beds around the home I recently purchased. ■

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The GreenStone Story:

Customer Confidentiality & Public Record

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Spring 2021 — Partners

As a GreenStone customer…

1. We promise to offer you personalized

service.

2. We promise immediate responses to all

your requests.

3. We promise honest, fair and impartial

treatment.

4. We promise confidential treatment of all

information.

5. We promise to provide you accurate

information and advice.

Known as our Customer “Bill of Rights,” these five represent the commitment we make to our cooperative members.

1. Personal service - We understand no two

farms, businesses or households are alike, and each deserves personal attention.

We will work to develop a mutually beneficial relationship with all members, one based on respect, trust and open communication.

2. Immediate responses to all requests

- Our staff embrace our Core Four Values, including putting the customer first by being responsive and building relationship with customers beyond the transaction.

3. Honest, fair and impartial treatment - We

treat all customers fairly and honestly while appreciating their individuality and adhering to our thorough and regulated processes. It is our commitment to work with customers to provide the most viable and sustainable solutions for their individual circumstances.

4. Confidential treatment of all information

- Our commitment to all customers is to treat member information and affiliation with GreenStone confidentially.

All financial institutions, including GreenStone, are obligated by law to record certain information as a matter of public record. Beyond what is required, we will never release the names of our customers or comment on the relationship we have with individuals without prior consent.

5. Accurate information and advice – Our

staff are engaged in the industries of their customers and bring their experience and education to the customers they serve.

Together, we seek out the best solutions for our customers based on individual service, an unbiased perspective and sound financial metrics.

“

A trusted relationship with our customers requires open and transparent communication.

Confidentially

• Ownership history

GreenStone values our customer relationships, and we want you to feel comfortable and knowledgeable with how GreenStone handles your loans and information. A trusted relationship with our customers requires open and transparent communication. Member privacy – as outlined in #4 of our Customer Bill of Rights – is extremely important and can be questioned with the amount solicitations, spam and phishing attempts on us all each day. We want you to know we hold your financial and personal information in strict confidence.

• Property maps

Though we keep your information confidential, some customers who may have recently conducted business with us have received solicitations in the mail or email impersonating GreenStone and referencing personal and financial information related to their loan with GreenStone. Naturally, this raises questions on the authenticity of the mailer, as well as the confidentiality of our customer’s information.

As explained on page 49 in our Tech Tip, this is one of many types of “spam” targeted at securing your dollars or additional personal information. Using the information required by law to be filed publicly some companies compile public data – primarily register of deeds recordings – and mass mail, or email, solicitations using as much personal information as possible to get you to believe it is legitimate or that you need to take action.

• Record of sales listings • Historical tax assessments • Assessed property value • Property square footage and the number of rooms in a dwelling You can be absolutely confident if you receive a solicitation from another lender to refinance your GreenStone mortgage, the lender who sent it did not receive any information from GreenStone about you or your loan.

Our commitment to your right of privacy is part of our Customer Bill of Rights as is our commitment to customer satisfaction.

As a member of this organization, the protection of your privacy and the security of your personal information are vital to our continued ability to serve your ongoing credit needs.

Rest assured, we protect you and your information! ■ GreenStone’s privacy and security information are detailed on our website using the link in the footer: www.greenstonefcs.com. We encourage you to contact us if you ever question a document or email received or are unclear about our policies and commitment to our members.

Public Record

Our Customer Bill of Rights

Because some information is required by law to be publically filed, we want to make sure you are aware. All financial institutions, including GreenStone, are obligated to record with the Register of Deeds certain information as a matter of public record when a mortgage loan is written. These public records typically identify the borrower’s name, the lender, and possibly the original loan amount. In addition, public property records can also include:

As a GreenStone customer you have the right to receive:

• Personalized service • Immediate response to all requests • Honest, fair, and impartial treatment • Confidential treatment of all information • Accurate information and advice Partners — Spring 2021

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Director’s Perspective :

Women in Agriculture Laura Braun

Historically, women have always worked as partners in agriculture. While their roles may have sometimes been different, they worked equally hard and with just as much heart and devotion as their male counterparts. The success of American agriculture is just as much the result of their efforts as anyone’s!

During each generation, American farmers and ranchers have faced different kinds of adversity and women and their families faced each and every challenge as though their lives depended on it. Indeed their lives, as well as the life of American society, did depend on their dedication.

Just as women have always provided value to their family farms, having diverse voices, including women, on the GreenStone board is a strong asset. I think I provide a little diversity not only as a woman, but also as someone with a different background, having grown up in Metropolitan Detroit.

Today, one of our many challenges is that a much smaller percentage of the population is directly involved in agriculture. As society becomes further and further removed from the farm, so does the understanding of what it takes to put food on all our tables. It is important that we tell the story of all the good American farmers and ranchers do for our country.

An effective way to tell that story is to have an understanding of a different perspective.

As a woman in agriculture, and one from a non-agricultural background, I have the benefit of that understanding. I serve on the GreenStone board and hope to make it stronger by using this strength for the benefit of the cooperative!

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Terri Hawbaker

Talking about women in agriculture is actually very challenging for me. I grew up on a 100 cow dairy with two sisters and one brother. My parents had the same expectations for us girls as they did my brother. It wasn’t until the passing of my late husband Rick, that I fully came to realize the issue. Many businesses we had long standing relationships with stood beside me, but a few showed doubt as to whether I could, or should, be doing it – a female at the helm of the dairy farm.

It wasn’t easy to hear their un-asked for opinions, but nobody ever said farming would be easy. Faced with options on how to respond, I reverted back to simply doing good business. My dollar has the same face value as other’s, and I simply spent it at businesses that supported my endeavors.

My advice for women in agriculture would be the same as it would be for men. You

cannot go wrong by practicing good business ethics, being trustworthy, working harder than you think you can, being open minded, and taking smart risks. While there may be more noise to tune out by the naysayers, it’s hard to hear them if they can’t keep up.

I also believe it’s important for all of us to be involved in the betterment of agriculture. I am grateful to have the opportunity to use my skills as chair of the GreenStone board’s finance committee, and to share the viewpoint, values, and experiences of female farmers and niche farms to help serve that customer base.

The GreenStone board is one of the most diverse in the nation. We are known for representing a wide array of ages and farm types by both our male and female directors. This is a result of our customers participating in our elections and the nomination process to ensure we

remain diverse. Nicely done, GreenStone members!

As we all know, the past couple of years have been challenging for farmers, and it is important to not overlook our health.

With the lack of time with others, trying to navigate the daily changes and the unknowns, or possibly one too many video meetings, there is a whole new category to manage in an area farmer’s traditionally don’t excel in – mental health. To put things into perspective, we have come a lot farther in terms of accepting female farmers than we have in accepting farmer’s feelings. If we learn only one thing from the women in agriculture, let it be this: be more open and honest about how you really are, admit it, and take a minute to call a friend. ■ View a special Women in Ag video: www.greenstonefcs.com/WIA21

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into legislation should allow some rewards for farmers, ranchers and foresters.

Legislative Matters:

LOOK WHAT IS BLOWING IN FROM WASHINGTON – A SOLUTION FOR MOTHER NATURE There are a great number of sound agriculture management practices that help our farms, ranches and forests maintain productivity despite what Mother Nature throws at us. We exist with a tremendous amount of respect for the power of Mother, and even though we may sometimes curse her, we rarely turn despondent.

It is very apparent that farmers, ranchers, and foresters care as much about the environment, if not more, than any other profession. Yet, there is a lot of noise and misinformation regarding agriculture practices, the environment and climate in the name of science. Careful attention and communication will be critical as the winds change to address what has become an emotional political issue for some.

As certain as some may feel and state “climate change is real,” climate related legislation is even more real. There is now a name for the legislation, Growing Climate Solutions Act 33

Spring 2021 — Partners

(GCS Act), which will go along with the “climate change” label for the problem that is being solved. (House Bill - https:// www.congress.gov/bill/116thcongress/house-bill/7393/ text and Senate Bill - https:// www.congress.gov/bill/116thcongress/senate-bill/3894/text)

Act will empower the USDA to develop an array of programs for farmers and foresters that support greenhouse gas reductions and carbon sequestration. Farmers and foresters hold many of the keys to the solutions our legislators are searching for.

Like it or not, agree or disagree, the issue appears to be here for the duration. Sorting out was is real and its impact to agriculture and our rural communities is something we will need to come to grips with.

Agriculture may be viewed as Mother Nature’s kitchen sink to collect the earth’s carbon.

Thank Mother Nature for photosynthesis as plants and plant residue incorporated into the land put carbon into the soil, the second largest carbon sink on earth following the oceans. That is sound science.

Building what agriculture does

It appears farmers and foresters might have a seat at the table when it comes to the proposed legislation. In general, the GCS

The GSC Act identifies practices that may qualify for greenhouse gas reduction credits or carbon sequestration: plant residue use, emissions reductions derived from fuel choice or reduced fuel use, livestock emissions reduction practices, on-farm energy generation, energy feedstock production, fertilizer reductions, reforestation, forest management, avoidance of forest conversion, grassland management including rotational grazing, along with other practices determined to be beneficial. Most of the list identifies practices farmers, ranchers, and foresters already practice, or have in mind to practice.

There is still uncertainty on how best to apply the agriculture keys within the proposed legislation. Keeping a seat at the table to understand and influence practical solutions that could grow out of the legislation will be important as agriculture tells its past, present, and future practices that have put the planet in a better place.

We are surviving a pandemic and we will survive the climate panic as we sort through the opportunities to participate in the proposed legislation. It will take some patience and thoughtful leadership as we take this journey through the whistling winds of change. ■

PAC Progress:

DISBURSEMENTS In the Political Action Committee (PAC) progress, disbursements are the main event. Voluntary contributions are gathered by communicating the strategy and then receiving support from individuals that agree. But the talk and promises of the strategy all come down to action when the disbursements are set and executed.

At GreenStone, the legislative outreach strategy is to build the network of elected officials that support and take time to understand our rural communities and agriculture, and the PACs are a component of it. The begins with the budget of who will receive support and at what amount, and moves to the delivery method. This allows for continual evaluation and alignment by GreenStone’s Board of Directors and focuses on both record of support, and education and awareness. The balance of introductory and continued financial support is delicate, and is critical in maintaining flexibility as elected officials and political priorities change in government.

Some PACs disburse funds to influence an election; GreenStone focuses on candidates that are sitting elected officials seeking re-election. This approach is rooted in a desire to build and favor long-term relationships rather than shifts in political winds. To accomplish this, disbursements are made on a bipartisan basis, concentrated on those individuals in leadership positions or who serve on banking, financial services, or agriculture committees. In addition, financial support is provided to elected officials who have direct experience or have taken a special interest in agriculture or rural community priorities identified by GreenStone.

The amount disbursed is first and foremost determined by how much money is raised. Typically most, but not all, of the money raised is budgeted for disbursement. Some reserves are held for unforeseen requests or events, but are subject to approval. Disbursements are not all uniform as respect is paid to leadership positions, which party is in power, and the level of engagement by the elected official.

Finally, the delivery method of financial support is determined. The preference is to deliver checks in small meetings without other organizations present to allow for focused conversation and expressions of support. Fundraisers are another way to deliver checks and is preferred when it is an agriculture specific fundraiser or a larger profile event for leadership that will be widely attended by other elected officials. This allows for one contribution, but interaction and recognition with a wide group of elected officials.

PAC disbursements are an important strategic component of legislative outreach and are always given considerable attention. Your GreenStone leadership team and Board of Directors recognize the trust extended by contributors to steward the financial resources and take the responsibility seriously. Through it all, GreenStone is committed to being an advocate for the growth and prosperity of your rural community and agriculture, and views the PAC as one tool to help accomplish this amid constant political change. ■

Spring PAC RECAP: • MI GreenStone PAC - $29,212.25, 439 contributors • WI Farm Credit PAC - $1,925, 38 contributors

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Reconstructing Past the

Country Living Customer Feature

When Mac Ward’s great grandfather Wayne Dack returned from World War II he bought a 100-acre farm in Parma, Michigan with a farmhouse and settled in. With his wife, Rosemary, they raised a son and a daughter there. Once the children moved out, the farmhouse was demolished and replaced with a smaller home for the two of them to live out the rest of their lives.

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LIVE

It’s always been the family’s desire to keep the farmstead in the family. It was passed onto Mac’s grandparents and his grandpa’s sister. For a time, Mac and his wife Ashley rented the small house built in the 1970s.

However, they soon grew out of the 1,000-square-foot, two-bedroom, one bath home after starting a family.

Mac and Ashley moved out and into a home about seven miles away. The house sat vacant for a number of years until recent discussions started with his grandparents about buying the place and a portion of the acreage. But how could the Wards make it work for their now family of four that includes Addy, 7, and River, 4.

“I was there (the small house) a lot growing up and I really enjoyed spending my summers there and time with my grandparents,” Mac recalls. “Ashley fell in love with it when we lived there. So, I have really always wanted to end up back there.”

Financing

A plan was crafted to add onto the small house, a price was agreed upon and motion was underway... to some degree. Mac says they weren’t really sure how to move the sale forward doing it on their own without a real estate agent.

“I called our mortgage company on the house we were in, as well as other mortgage companies,” Mac says. “They understood what we wanted to do but didn’t have a great avenue for us to do it. There was no roadmap for us to get from A to B, and they

didn’t want to offer a new construction mortgage with the existing house.”

A couple of close friends of the Wards advised them to call GreenStone.

“I called Stacy (Stinson) at GreenStone in Charlotte, because that’s the town I work in, and started talking with her about our plan. She was like, this is what we need to do and here’s step 1-2-3-4. She knew exactly what we wanted to do, was right on target and super helpful.”

Stacy Stinson, a financial services officer with GreenStone, says the Wards were upfront on what they wanted, and and was a great fit with some of GreenStone’s specialty construction loans.

“It’s a remodel, but because so many changes were being made to the original home, it was viewed as a construction project,”she says. “We collected all the documents – such as sworn statements, building specs and blueprints – and then ordered an “as-will-be” appraisal, which allowed us to know how the final project would be valued.”

➡ Top of page: The Ward’s newly built country home. ➡ Above: A newly built kitchen with enough room to enjoy with friends and family.

View a highlight real video at: www.greenstonefcs.com/CLSpring21

Mac says they had the money to secure

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➡R ight: Mac and Ashley Ward stand next to their fireplace in their new home.

financing, it was a matter of finding a lender who recognized the value of the land, which was being rented to a farmer who will continue this coming season.

The Wards closed in August 2020 on 10 acres of the 100-acre farm with plans of buying the rest at a later date. The property includes the house and two barns – one was partially fallen and has since been demolished.

Construction underway

The Wards hired Ryan Seifert of Tines and Timber Construction as their contractor and broke ground in September. “A good contractor is worth his weight in gold, and Ryan did an amazing job,” Mac says.

The small house was remodeled and the equivalent of another home added on. The house is now just shy of 2,000-squarefeet. “The old house basically became our bedrooms and baths, and we added new living space and a kitchen,” he explains.

“I hear horror stories about the stress of house building. We sold a house during COVID. We bought a house during COVID, and we built a house during COVID. But by working through GreenStone and having a great contractor, it was very easy – easier than buying our original house.”

Mac says it was easy even though it required them to move into the small house for a short

i

Strong ties

Not only did the property have family sentiment, the family also has strong ties with the Springport School District, which includes Parma. “The kids don’t have to change districts and that’s where I went, my parents and my grandparents,” says Mac, who also notes their new home is about halfway between Jackson, where Ashley works, and Charlotte, where he works.

“This has been great because my grandparents

were very concerned about making sure the land stayed in the family,” he says. “I think we’ve provided a safe feeling for them. And, we designed and built the house to host family gatherings where many of us have lasting, special memories. One of the greatest parts of this house, which was built on a hill, is the view of the property – it’s pretty awesome.”

While it won’t happen this spring, Mac says they have plans in the next couple of years to develop a Christmas tree farm and maybe have some animals.

Was it worth it? Mac gives a definitive yes.

“We love it,” he says. “We expected a lot, and it exceeded our expectations – tenfold.” ■

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.

Home Mortgage with Kim Cool 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. We hope these FAQs will help make your journey to country home ownership a little smoother and easier! ■

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period of time before construction, then into a camper on the property and then to his parent’s house during the winter before their Feb. 20 move-in date.

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Is Now a Good Time to Build?

Even with the increased cost of lumber and construction materials, GreenStone VP of lending in the Howell branch, James Cole, shares why now might still be a great time to start your home construction build. ■ Construction Webinar: Flexible Financing for You! Ready to turn your dream home into a reality? Take a minute to watch one of our recorded webinars for an overview of the

home building process and how our flexible financing options can help make it happen! ■ Ensure a Smooth Loan Application Process Ready to apply for a loan, but not sure where to begin? Review these frequently asked questions to help ensure your application process goes smoothly! ■

CREATION OF YARD GAMES – PREP FOR OUTSIDE ACTIVITIES! Have you missed the 60+ degree weather and being outside?

Don’t worry – we have too! Being cooped up all winter makes us want to be outdoors. Luckily, warmer weather is coming, and we have a great project idea for you and your family to do this spring.

Yard games! Yard games get families and friends together all throughout the warmer months, and what better way to bring your “A game” than creating and constructing your own yard game!

There are so many yard games you can create with your family; some can be more complex, and others are easy to make! Below are some ideas we found.

Jenga Materials you need: • ¾” plywood 18”x18” • 6 – 2”x4” x 8” pine boards to make 54, 10 ½” pieces • 1 – 2”x4” x 6” pine board to make the sides for 18”x18” plywood base • Sandpaper • Threaded feet for base • Kreg Screws • Saw (table or circular) Step 1: Build the Platform • Cut the ¾” plywood to 18”x18”. Then make a frame out of 2”x4” boards. Cut two boards to 15” and two boards to 18”. Then, using kreg

screws, attach the 2”x4” cut boards to the plywood and to each other to form the base for the platform.

Step 2: Cut out Jenga Pieces • Cut 54 Jenga pieces with the 2”x4” boards. You can choose how big or how small you want them. The materials listed above are for 10 ½” pieces Step 3: Sand the Pieces Down

Ladder Golf Materials you need:

Step 4: Stack the Pieces Up

• 24 PVC pipes

Step 5: Play Jenga!

Yahtzee

• 12 PVC connectors (6 elbows, 6 t’s)

Materials you need:

• 6 bolas

• 4”x4” wood post

Step 1: Cut the pipes in half

• Marker

Step 2: Lay out horizontal bars, then add the t’s and elbows

• Sandpaper • Chop Saw • Tape Measure Step 1: Cut the 4”x4” wood post into five equal cubes using a chop saw Step 2: Sand them down Step 3: Use the marker to make the dice dots Step 4: Play Yahtzee!

Step 3: Add vertical bars and attach to the horizontal bar with the connectors Step 4: Build the base with leftover PVC pipes Step 5: Attach this base to the ladder Step 6: Play ladder golf!

While these are a few on the list of yard games to get you started,

there are a plethora of more games to choose from: cornhole, washers, ring toss, etc. Get your family together in your shed and break out some tools to construct these. This is a great opportunity to get your children outside and help them learn new skills!

Constructing their own yard game can teach them so much about hands on work, and what better way to do it than with the family.

May the best DIY yard game win! ■ Sources: How to Make a DIY Giant Jenga Game - DIY Pete How to Build a Life-size Yard Yahtzee Game (dunnlumber.com) Ladder Golf DIY - How to make your own lawn game - Sand Dollar Lane

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STARTER GUIDE FOR HEALTHY LIVING – 8 GLASSES OF WATER A DAY The phrase “being healthy” can sometimes frighten people, as many associate it with extra time and work.

This statement doesn’t have to come with apprehension. You can start by taking small steps toward your goals, and there’s a challenge that can help you get there. This challenge consists of drinking 8 glasses of water every day and tracking it! Water keeps you hydrated and is a great first step in the healthy direction.

The Challenge - Tips for You! You can craft this challenge in your own way! How you want to be accountable for doing this is completely up to you. Here are some ideas to get you started!

• When you wake up, get a glass of water. This will allow you to start your day off thinking about drinking water more and allow your body to stay hydrated. More than likely, your body hasn’t seen water for at least 7-8 hours while you were sleeping. It needs it!

• While eating or snacking, get a glass of water. Drink water while eating meals, but also get some extra glasses in while having a snack! For some, it is easy to snack without having anything to drink, so challenge yourself to add water into the routine. If you do this and make it a habit, you will get to your 8 glasses a day faster.

• Do some form of exercise every day. This can be walking your dog, doing a workout video, running, walking around your office at lunch, the options are endless. If you do some form of exercise, you will probably get tired faster and need some water along the way. Take some water with you or keep it on the table next to you. When you are thirsty, it will be right there.

• Bring a water bottle with you everywhere. If you have a full bottle of water with you, you will always have access to

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water, which will make you want to drink it more. Fill it up in the morning to take with you to school or work. While always having the water, you won’t feel the need to stop somewhere to get a pop at a gas station or a drive thru.

This is a good habit to start and keep!

• Get a glass of water before you go to bed. Even if you didn’t hit your goal of drinking 8 glasses today, don’t worry.

It takes some time to get in the habit. By drinking water before you go to bed, you will stay hydrated throughout the night and get yourself closer to that goal.

Have you been looking for a way to track your water intake?

Below are some apps some health experts recommend!

1. Daily Water Tracker Reminder 2. Waterlogged 3. Water Reminder 4. Hydro Coach 5. FitBit 6. iPhone Health App While all these suggestions are just starting points, they each bring you one step closer to the goal we are trying to achieve.

Taking good care of your body is important – and this is a beginner challenge to get you on the right path! ■

Morel mushrooms are found not only here in Michigan and in Wisconsin, but in most of the northern states across the country. They are excellent table fare and are only available for a couple of weeks each year. These mushrooms usually sell for at least $30 a pound and are often sold for double that. Thankfully here in the midwest, you can usually find them on your own without too much trouble.

Morel mushrooms can be found just about anywhere but tend to be more prevalent around elm, poplar, ash, and apple trees. In the southern half of Michigan, elm trees are the ticket. Elm trees that have recently died are usually the best, meaning they produce the most mushrooms. The mushrooms will generally be within 30 feet of the base of the tree, condensing the area you need to scan considerably. I will spend more time with my head up looking for the perfect tree in this part of the state than I will staring at the ground.

The other tree species are still worth checking, but rarely produce the number of mushrooms that a good elm tree will.

In the northern half of Michigan, mature poplar trees usually yield the highest number of mushrooms. In this area, you’re looking for big stands of poplar trees instead of one particular tree. Morels tend to be much less condensed in these areas and can be spread out over several acres. This will require a lot more time looking down, canvassing the area very thoroughly. Small changes in the topography are important to search in these areas as well. Whether it’s a small knob or hill side, these subtle changes in the land-scape tend yield a few more mushrooms.

Finding morels can be somewhat of a competitive endeavor as it’s a very popular activity. If you’re limited to looking on public land, you may need to put on a few miles to get around the other mushroom hunters. If you’re not able to do that, just remember that mushrooms can grow just about anywhere! If you see a good tree along the road or along the edge of your yard, make sure to check it out.

WATCH YOUR STEP!

By Jordan Browne, Co-Host of Michigan Out-of-Doors TV The snowbanks have melted and the turkeys are starting to gobble, which means the spring woods are beginning to erupt with new life. The matted down forest floor quickly gives way to the new spring flora and before long one of the most coveted fungi in the entire country starts to show itself, the elusive morel mushroom.

When it comes to preparing these morels for the dinner table, you really can’t go wrong. You can add them to about anything or just pan fry them in with a little salt and butter, which is probably the preferred method around the state. If you get a chance to spend some time in the timber this spring, make sure to enjoy all of the sights and sounds that spring has to offer and don’t forget to keep an eye out for morel mushrooms! ■

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Commodity Cuisine...

Asparagus & Turkey Roll Ups This recipe makes for a great meal or snack.

Instructions

Prep Tip: No tortillas? Spread cream cheese directly on the turkey and roll it up.

1. P ut asparagus in a microwave safe dish with about an inch of water. Cook on high until asparagus is tender (about 4 minutes).

Drain.

Change it Up: Asparagus not in season? Use fresh spinach instead.

Ingredients • Whole-wheat tortilla - 4

3. P lace a slice of turkey and asparagus spears on top of the cream cheese.

• Low-sodium deli turkey - 1/2 pound, sliced

4. Roll and eat. ■

• Cream cheese - 4 tablespoons, low-fat or fat-free, plain or Garden Vegetable flavor

To view the nutrition facts, please visit: https://mihotm.recipes/entree/asparagusturkey-roll-ups/

• Asparagus - 1 bunch, washed and trimmed fresh asparagus

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2. S pread a thin layer of cream cheese onto each tortilla.

LEARN

CROP INSURANCE NEWS:

BE PREPARED – PREVENTED PLANT OR REPLANT If weather conditions prevent you from planting or you need to replant a crop, you may qualify for a claim. File a claim with your crop insurance specialist before replanting. DO NOT replant until you have received approval to do so, or you may not receive an indemnity. If you have a prevent plant situation, a claim must be filed within 72 hours after the end of the late planting period, which varies by crop. (There is a minimum requirement of 20% of the unit or 20 acres for both replant and prevent plant claims, whichever is less.) Some important changes were made for the current crop year in regards to both Replant and Prevent Plant rules. Depending on the timing of the replant period, weather and field conditions, you could be required to replant.

New Updates for 2021 Prevent Plan Claims Planting season is here and Mother Nature is unpredictable. Be sure to understand the new Prevent Plant claim rules established for the 2021 row crop planting season. The important updates include: • Expanded “1 in 4” requirement: acreage to be insured must have been planted to a crop, insured and harvested (or covered for an insured loss) at least one of four previous years • Added exception allowing producer to receive prevent plant payment on different crop, if proven intent to plant other crop based on inputs applied or available to apply

• E xtended use of producer’s intended acreage report to establish eligible prevented planting acres in a new county to two consecutive years (instead of previous rule of one year) •R emoved requirement for acreage planted to uninsured second crop following a failed first crop within the same crop year to be subtracted from prevented planting eligible acreage For more complete information about these important changes including frequently asked questions and examples, please visit https://www.rma.usda.gov, or contact your GreenStone crop insurance specialist. ■

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Your cooperative, your coverage.

With so many things affecting the milk price, producers must challenge themselves to learn more about risk management. When it comes to protecting revenue on a dairy farm there are many options. Some of those are forward contracts, options on Chicago Mercantile Exchange, Dairy Revenue Protection, Livestock Gross Margin, Dairy Margin Coverage, or to do nothing at all. Even though doing nothing is an option, history shows it is rarely the best choice.

Robert Netrefa GreenStone Senior Crop Insurance Specialist

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The question, “Is that a good price?” cannot be answered without sufficient information.

No matter the risk-management option used, knowing the dairy’s numbers will always help make sound decisions around risk management. Most producers have no problem answering questions on herd performance or production. However, when asked what their basis is compared to Class III or what their breakeven is, many producers don’t know.

When Dairy Revenue Protection first started, many producers were looking for any information they could find to help them with those decisions. Over 30 percent of the milk in Wisconsin is now protected with Dairy Revenue Protection, driving a need for solid information. GreenStone teams with Farm Credit associations across the country to work with Marin Bozic, PhD, assistant professor in the department of applied economics at University of Minnesota, to develop a tool that helps producers answer questions they had so they could make sound risk-management decisions.

Producers need to understand their milk check. They must be able to track their basis by quarters to understand how protecting a $16 Class III or a $17.50 component price correlates to their pay price. Additionally, revenue-floor numbers should be compared to breakeven numbers. It’s much easier to justify spending $0.30 per hundredweight on Dairy Revenue Protection when data shows that a profit of $1.50 per hundredweight is being protected. Knowing the dairy’s basis will help producers understand what they are protecting and what will show up on the milk check.

The Farm Credit Dairy Revenue Protection Analyzer tool – available to GreenStone DRP customers – includes a historical breakdown for producers to see the benefit net after premium. Keep in mind those numbers can only be seen by working in distant months, they are not relevant in the near term. It is wise for producers to work at least 6 months ahead.

According to Marin’s math, at the 95% coverage level – which is 44% subsidized – for every $100 paid in premium, over time the producer will collect $1.00/56%, or $178.

That is an excellent return on investment.

For example, if a producer spends $0.35 per hundredweight, over time the indemnities will average $0.62 per hundredweight and the net farm income will be higher by $0.27 per hundredweight. And that’s after the premium.

That will only work if Dairy Revenue Protection is always being used, which could sometimes mean buying below the breakeven will be better than not buying at all. Yes, that’s correct. Even working with numbers that yield a loss, positive numbers can be generated.

Think of it this way: the plan protects the maximum amount one can lose, too.

Every producer should challenge himself or herself to learn more about their federal order, Producer Price Differentials, and what it all means to their pay price. Learn what depooled milk is and how it affects the Producer Price Differential on the milk check.

Consider using multiple options in developing a risk-management plan. Dairy Margin Coverage is a risk-management tool available through United States Department of Agriculture that protects the margin. It protects the difference between the all-milk price and average feed costs and can deliver effective risk management for dairies up to 250 head and partial risk protection for larger dairies.

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Dairy Margin Coverage is a risk-management tool available through United States Department of Agriculture that protects the margin.

The historical tool on Dairy Margin Coverage, which can be found on dairymarkets.org, shows how effective Dairy Margin Coverage can be for a dairy.

In the last ten years, a dairy farmer would only have been out the premium in 2014.

The average class III price for that year was $22.34. Using protection tools such as Dairy Margin Coverage, with Dairy Revenue Protection, or Livestock Gross Margin, producers can stack up their coverage. For producers who want to protect their income there is no reason not to use Dairy Margin Coverage.

Of course, it is ultimately the producer’s decision. Gain knowledge from all trusted advisors to help make sound risk-management choices. Design a risk-management plan and be flexible to change but not greedy with numbers. Try not to fall into the trap of speculating. No one can predict what markets are going to do. Certainly no one predicted what COVID-19 would do to milk markets when it hit the U.S. Though there may be an idea of where prices are going, there are too many variables impacting milk prices to ever know for sure. That’s why price risk needs to be managed. ■

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CROP INSURANCE NEWS: NOW IS THE TIME TO SIGN UP FOR HAIL INSURANCE!

before damage occurs. Below are some other important items of note regarding hail coverage.

•M ost hail insurance covers other perils above and beyond hail damage. Policies also cover fire, vandalism and malicious mischief, transit to the first point of storage, and stored grain coverage if you happen to have bin(s) at home.

•H ail coverage is available on most any crop; even if you don’t have a Federal crop insurance option, it can generally be covered for hail.

•A customer is able to carry a Federal MPCI policy as well as a hail policy, and collect on both in the event of a loss.

What used to be considered a fairly rare event seems far more commonplace now. Hail is a separate policy from your multiperil crop insurance coverage. Federal crop insurance covers hail damage as it relates to yield reduction, but producers can also purchase separate hail coverage for their crops from the same companies that offer federal crop insurance. As an added bonus, your hail policy can provide coverage for fire, lightning, vandalism/ malicious mischief and transit to the first place of storage.

Hail insurance is based on the percent of damage received at a particular growth stage, which allows insurance companies to perform adjustments and pay indemnities during a growing season, without having to wait until harvest. Rates and coverage vary by crop and county. Keep in mind, hail insurance must be purchased

•H ail coverage is based on a dollar amount of coverage per acre, with premium generally quoted per $100 of coverage. For example, if someone wanted to cover their corn at $700 per acre, and the premium was 60 cents per $100 of coverage, their premium for corn would be $4.20 per acre.

•O ne benefit to hail insurance over MPCI is that you can insure up to the total expected value of the crop, whereas on MPCI you’re limited to 85%.

•H ail coverage generally has many different endorsements available, including quality en-dorsements on crops intended for fresh market, canning reject endorsements, etc.

To learn more about how a hail policy works or what options are available and covered with a hail policy, contact your GreenStone crop insurance specialist today to review your options. ■

Crop Insurance Calendar...

APRIL

ACREAGE REPORTS The earlier we get started on reporting your planted crop acres, the earlier we can process your reports and return for your review. It is the customer’s responsibility to report the crop that was planted in each section, the planting date and your percent share of that crop.

Reporting your crop accurately and double checking everything on the Schedule of Insurance is very important. Corrections or changes cannot be made after the July 15th reporting deadline. You do not need to report to FSA before reporting your planted acres to your crop insurance specialist. If you use precision planting technology, we can save you a lot of time reporting acres. Contact your local GreenStone crop insurance team if you have any questions or would like assistance. ■ 45

Spring 2021 — Partners

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Sales Close Date for Apple Tree Insurance

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Production Reporting Deadline for all 2020 Spring Crops

MAY

31

Oat Acreage Report Due

JULY

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Forage & Fall Wheat Premiums Billing Date Spring 2021 Acreage Reports Due

AUGUST

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Spring Premium Billing Date

EARLY/FINAL PLANT DATES Early and final plant dates vary by crop, county and state. Coverage levels can be reduced if a crop is planted too early or too late. Please check with your crop insurance specialist or actuarial documents for specific details and dates for your county if you are unsure about which dates apply to your policy. ■ ORGANIC CROPS As a reminder, RMA now requires all insured organic certified producers to provide a copy of their organic crop plan and organic certificate to their agent before the acreage reporting date. ■ 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 crop to harvest, we must appraise the acres prior to destruction. ■ 1ST CROP/2ND CROP If you are planning on possibly removing a first crop to plant a second, make sure you contact your crop insurance agent before doing so. You could potentially be eligible for a claim, but you may forfeit that eligibility if you act before contacting your agent to discuss your options! ■ ENTERPRISE UNITS STRUCTURE The added subsidy on the enterprise unit structure makes it an affordable option for many producers. The downside is, if you don’t end up planting the required acreage, your policy can revert back to a basic unit structure, and your premium could increase substantially. There are two requirements to qualify for enterprise units:

IMPORTANT: 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 are anticipating that your yields may fall below your guarantee. This is never the situation you would like to be in, but that is 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.

You must farm in two or more separate sections.

AND At least 20 acres, or 20% of your individual crop acreage, whichever is less, must be planted in that second section.

Adverse spring weather has the potential to cause prevented planting which could take some producers out of enterprise unit eligibility. Make sure to contact your crop insurance specialist if you anticipate any issues with meeting the enterprise unit requirements. ■

Insurance coverage generally begins at time of application or time of planting, whichever is later. The end of the insurance period is the earlier of total destruction of the crop, final harvest of the crop, abandonment of the crop, or the end of the insurance period. (October 31st for wheat) It is the insured’s responsibility to notify the insurance company within 72 hours of the initial discovery of the damage or production loss, but no later than 15 days after the end of the insurance period, even if the crop has not been harvested. If you have a revenue protection policy and have a claim based on strictly price, the insurance company must be notified within 45 days of the harvest price announcement for the crop. The RMA is enforcing these rules and have been known to decline late filed claim requests and have even requested repayment from an insured for paid claims that were im-properly filed.

CROP INSURANCE ALERTS! Crop Insurance Alert postcards and emails will be sent on an “as needed” basis to customers. The goal is to communicate any vital information that we receive and feel necessary to pass along to you.

When you receive one, please pay attention to its message. That way, any required action on your part can be completed on a timely basis. ■

Remembering these key points will help avoid any problems with your claim and make the process go that much better. As always, if you have questions based on what you’ve read, please contact your crop insurance specialist and they will be able to help you out. ■

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Expanding on a Legacy In 1966, Jim and Germaine Matsche started their Birnamwood, Wisconsin, farm with just two milk cows. While raising six children, they slowly grew the operation. By 2000 they were at about 300 milking cows when they added a double 24-parallel parlor and began an extensive expansion.

Tax and Accounting Services Customer Feature

By 2014 they were milking 2,200 cows three times a day, around the clock taking a toll on equipment. The family knew it would need to make some significant decisions for the future.

The second generation, Scott and Carrie Matsche, are the current owners of the farm and now their three sons Chris, Ryan and Kyle, as well as Chris’ wife Heather, two nephews, Tyler and Brandon, and a niece, Nicole, are involved with the operation. Everyone is well-rounded and has their place on the farm, Heather says, from shop work and working in the fields, to tending cows and working in the office.

➡A bove: Chris Matsche poses with one of the farm’s 5,500 cows. ➡ Opposite Page: The farm family extends beyond the second and third generations at Matsche Farms (Chris and Scott) and includes partners like their GreenStone relationship manager Dan Gitter.

View a highlight real video at: www.greenstonefcs.com/TaxAccountingSpring21

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“The old parlor was getting a lot of wear and tear,” explains Heather, who wears many hats but is mainly involved in the farm’s accounting, human resources and public relations.

They investigated new technologies, including robotics, and also the idea of revamping the old parlor. Ultimately, with input from their team of experts, including their financial partner, GreenStone, they decided on building an 80-cow rotary parlor and a 4,000cow freestall barn, which was started in 2015 and operational in 2016. The barn was finished in 2017.

Along with the milk cows, they raise all of their calves and heifers, as well as forages on 6,000 acres.

GreenStone has been their lender since 2000. As the operation grew, Carrie says, “We went with GreenStone because our bank wasn’t big enough and GreenStone was more knowledgeable about farming.”

Tax, accounting and payroll services

With the new expansion and their accountant wanting to retire, the Matsches also decided to benefit from GreenStone’s tax, accounting and payroll services. “This allows us to have everything with one company, and it streamlines operations and allows us to easily understand our current position and projections for the future,” explains Carrie, who is gradually transitioning her accounting duties to Heather.

Data is entered in Quickbooks and a monthly backup is sent to Eric Vandivier, senior tax accountant out of GreenStone’s Little Chute, Wisconsin branch. “I categorize expenses and Eric reviews them to make sure everything is in the right category,” Heather says. “If there’s something wrong, it gets fixed, and sent back to us.”

Vandivier says, “I look at their records

Tax Calendar...

Note: As a result of the COVID-19 pandemic, some due dates have been adjusted. The below dates are accurate as of March 27, 2021. Please check our website at www.greenstonefcs.com for updates.

APRIL

15

1st quarter estimate is due for 2021 for individuals that pay estimated taxes.

Corporations file a 2020 calendar year tax return (Form 1120) and pay any tax due. If not able to file, file Form 7004 to request an automatic 6-month extension.

Corporations deposit the 1st installment of estimated income tax for 2021.

and break it down into reports,” he says.

“And I work with our lending department to supply a lot of information to fulfill their requirements, whether it be balance sheets, or profit or loss statements or if it’s capital asset schedules or tax returns.”

While both departments are under the same GreenStone umbrella, Vandivier says the information is kept confidential and customers must sign disclosure forms for information to be shared. Once that’s done, a lot of information can flow back and forth, he says. Using GreenStone’s tax and accounting services allows farm owners to move quickly on financing if necessary.

Daniel Gitter, GreenStone’s vice president of commercial lending who works with the farm, says open lines of communication benefit all.

“By providing good quality information, we are providing valuable input into decision making. Whether it’s how we structure a loan or the timing of a capital purchase. All of this helps to come to a mutual conclusion everyone is happy with.”

In addition to monthly meetings, there also is an inclusive, team meeting quarterly. “We bring in all our vendors, from the person who’s going to service our dairy equipment, to our agronomist, to our nutritionist and those involved in our breeding program,” Heather says. “Dan (Gitter) and our dairy consultant help run the meeting to report on how things are running and to tackle any issues.”

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Even though it’s a large dairy, it’s still family owned and oriented – that means there’s always food at these meetings, including Carrie’s famous clam chowder.

To help in decision making, GreenStone also offers some benchmarking through its credit department. “As an example, we can anonymously group 500- to 1000-cow dairies and show you how you compare to the rest of that peer group. Is your production lower than normal or is that higher? Maybe a farmer needs to look into lowering his cost of production, or maybe his feed expenses are too high,” Dan explains.

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Carrie adds, “We value the opinion of our lenders. And Scott and Dan have a great relationship. They text a lot. And Eric has been great to work with. It’s not always just about business; they’ve become like family. I’ve recommended GreenStone to other farmers.”

Scott says he enjoys working with knowledgeable people that understand the farm, everything from buildings and land to equipment.

We value the opinion of our lenders. It’s not always just about business; they’ve become like family.

Individuals file a 2020 income tax return (Form 1040) and pay any tax due. If not able to file, file form 4868 to request an automatic 6-month extension. If tax is due it must be paid with the Form 4868.

JUNE

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2nd quarter estimate is due for 2021 for individuals that pay estimated taxes.

Corporations deposit the 2nd installment of estimated income tax for 2021.

Looking ahead

For the future, Heather says the farm is looking into manure digesters. “We are committed to reducing our carbon footprint and being environmentally sound. We’re getting insights from the staff at GreenStone and seeking advice.”

Non-farm employers file Form 941 for the 1st quarter to report Social Security, Medicare, and withholding.

JULY

15

2nd quarter estimates are due for 2021 for individuals that pay estimated taxes.

Most recently, GreenStone assisted with the national Paycheck Protection Program, which helped the farm pay employees when milk prices plummeted during the onslaught of COVID. And, as the farm began transitioning to the next generation two years ago, GreenStone offered resources to help with the process.

While the operation, with about 50 fulltime and 30 seasonal employees, has continued to advance and grow, the Matsche family is most proud to be farming as a family, in which they include their employees.

Scott and Carrie now have 11 grandchildren.

“My grandkids get off the bus here, and they’ll come right to the office,” says Carrie, who calls it a blessing to be a part of their lives. The Matsche’s think there’s a pretty good chance their dairy legacy will continue. ■ Partners — Spring 2021

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i

Tech Tip: Trust but verify

Matthew Cosgrove GreenStone VP of Information Security

The previous few months have been busy for cybersecurity professionals. We have seen two large scale alleged nationalstate cyber-attacks that have impacted tens of thousands of organizations throughout the globe across every industry. 2020 ended with a supply-chain attack against SolarWinds, that impacted over 18,000 organizations that used their network monitoring software. This attacked allowed the cyber-criminals the ability to spy on state and federal computer networks.

Then in March, Microsoft was impacted by 4 zero-day vulnerabilities that have left over 30,000 on-premises Exchange servers compromised. An Exchange server is used by organizations for email communication, among other things. A single Exchange server can host hundreds of individual email accounts. This means that the number of individual email accounts compromised will be unknown for months if not years to come.

Fortunately, GreenStone was not impacted by either of these recent cyber-attacks. We followed the prescribed guidance from CyberSecurity & Infrastructure Security Agency (CISA), Department of Homeland Security (DHS) and the vendors.

The sheer number of newly compromised email accounts mean consumers everywhere could begin to see a tsunami of phishing emails from legitimate email accounts. These phishing emails could contain very specific or sensitive information that normally only the sender would know. This might include loan information or other sensitive conversation information. According to a report released by NTT Communications “59% of phishing attacks in the Americas relate to finance” (NTTSecurity, 2018). The reason the cybercriminals keep doing this is because of the endless potential for financial gain.

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Why is this important?

This influx of newly exposed data and personal information provides scammers the perfect foundation to build communication that is tailored towards you. On top of that, they already have access to a treasure trove of public records, including information like your principal mortgage amount and the institution that hold the mortgage note.

These details are public information, and is not only used by cybercriminals but also by companies trying to solicit you with all types of goods and services.

There is a handful of ways that companies can obtain that information. One potential way is they purchase that information from the financial service provider – GreenStone does NOT sell any of your personal or financial information. Another way is they obtain that information from creditors after you met a certain credit criterion, this is often referred to as a “prescreened” offer.

How do you protect yourself from falling victim to these attacks?

With any email message – trust but verify, never open email attachments or click on URLs from senders you do not know or from emails you were not expecting. It only

takes one wrong click, and you could end up with a computer that has now caught a virus or ended up providing your username and password into a “look alike” login page for your email account – all without even knowing it.

With any mortgage mailer that comes in “snail mail,” knowing how they got the information goes a long way. Most of these mailers catch us by surprise because we are unaware that the information that is on the letter is public information.

When I received my first mortgage mailer, I was shocked that this company - which I did not have a business relationship with – knew what I thought was sensitive information like my mortgage principle. In reality, I now know this information is regulated to be reported and becomes public information.

The Federal Trade Commission highlights on their web page two steps individuals can take to help reduce the number or unsolicited mailers - https://www. consumer.ftc.gov/articles/0127-gettingmortgage-offers.

1. Call 1-888-5-OPTOUT (1-888-567-8688) or visit www.optoutprescreen.com to opt out of prescreen offers.

2. P ut your phone number on the federal government’s National Do Not Call Registry to reduce the telemarketing calls you get at home. To register your phone number or to get information about the registry, visit www.donotcall.gov, or call 888-382-1222 from the phone number you want to register.

There is no magic bullet that will completely or entirely eliminate all risk nor solve all the issues. To help, look for the clues that the mail is junk mail. An example is irregular text – like all “CAPITALS” within sections of the mailer your name, mortgage amount or lender; or the mailer not visually reflecting the same logo or design as most mailers you might get from your lender – these can be giveaways that your information came off a purchased list. Regardless how “real” it looks, you can always call your local lender to verify its authenticity!

Enjoy the beautiful spring weather and save a tree or two by opting out of these junk mailers. ■ Sources NTTSecurity. (2018). 2018 Global Threat Inteligence Report. Retrieved from Phishing Box:

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3515 West Road East Lansing, MI 48823

Spring feature highlight...

Mac and Ashley Wards' vision of transforming a family farmhouse on 10 acres in Parma, MI was recently brought to life with the help of a construction loan from GreenStone.

Read more on page 35.