Leader: Standing Strong

Farm Credit

leader

standing strong

Check out page 12 for tips from Dr. Alex White on successful transition planning.

Volume 23 | ISSUE 3 | $3.95

in this issue farm and land

4 Faith, Family, friends

The Rothenberger family of Lansdale, Pennsylvania credits their strong ties to church and community for their ability to work through a difficult challenge.

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6 A HOPPING FAMILY BUSINESS The Galbreath family started

Falling Branch Brewery in Street, Maryland to remain viable within the agriculture market while staying true to the family-owned tradition.

our association Succession Planning Advice

8 BEATING THE ODDS

Tim and Kim Austin of Serenity Farm in Centreville, Maryland didn’t let two collapsed poultry house roofs stop them from success.

10 It’s A Tradition

The Watt family of Timber Ridge Fruit Farm in Gore, Virginia knows all about the importance of having a solid plan to help weather difficult times.

social media facebook.com/MidAtlanticFarmCredit @midatfarmcredit

community

13

2019 scholarship program announcement

properties for Sale

@midatfarmcredit mafc.com/blog youtube.com/user/MidAtlanticFC

questions or ideas

MidAtlantic Farm Credit, ACA

If you have any questions or ideas for the editorial staff of the Leader, contact Katie Ward at 888.339.3334, email her at kward@mafc.com or write her at MidAtlantic Farm Credit | 45 Aileron Court | Westminster, MD 21157. This publication is for you, our reader. We’d love to hear from you!

Thomas H. Truitt, Jr., CEO

The Leader is published quarterly for stockholders, friends and business associates. If you wish to no longer receive this publication, please email: unsubscribe@mafc.com. Use “Unsubscribe Leader” in the subject.

Jennifer L. Rhodes Chairman

The Farm Credit Administration does not require the association to distribute its quarterly financial reports to shareholders.

However, copies of its complete report are available upon request or see quarterly updates online at mafc.com. The shareholders’ investment in the association is materially affected by the financial condition and results of operations of AgFirst Farm Credit Bank and copies of its quarterly financial report are available upon request by writing: Susanne Caughman AgFirst Farm Credit Bank | P.O. Box 1499 | Columbia, SC 29202-1499 Address changes, questions or requests for the association’s quarterly financial report should be directed to: MidAtlantic Farm Credit, ACA by calling 800.333.7950 or writing: MidAtlantic Farm Credit | 45 Aileron Court | Westminster, MD 21157

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MidAtlantic Farm Credit Board of Directors

Brian L. Boyd Vice Chairman Gary L. Grossnickle Laura M. Heilinger Dale R. Hershey Walter C. Hopkins Anthony M. Ill T. Jeffery Jennings M. Wayne Lambertson Fred R. Moore Michael S. Nelson Dale J. Ockels Alan N. Siegfried Douglas D. Scott Joseph D. Snapp Fred N. West

president’s message

president’s message

rising to the challenge

events | deadlines

sep

event

place

3 Labor Day Offices Closed

14-16 Worcester County Fair

Snow Hill, MD

14-22 The Great Frederick Fair Frederick, MD

16-22 Gratz Fair Gratz, PA

19-21 Southern Lancaster County Fair

20-22 Oley Valley Community Fair Oley, PA

25-29 Ephrata Fair Ephrata, PA

26-28 West Lampeter Fair Lancaster, PA

Quarryville, PA

8- Oct 7 Keystone International 2 Livestock Expo Harrisburg, PA 28- Oct 7 Virginia State Fair

oct event

Doswell, VA place

8-12 Manheim Farm Show Manheim, PA

20 Maryland Million Laurel, MD

nov

event

place

22-23 Thanksgiving Offices Closed

The agriculture community is facing a variety of challenges today.

Some are a result of the marketplace; others are a result of a shift in the consumer’s mindset. Whatever the cause, it’s more crucial than ever for farmers and those who support them to adapt, innovate, and make changes where they can to keep up with the ever-changing demands.

Our members are some of the hardest working and most resilient people I know. Many have seen decades of change in the ag community, while others are just starting to dip their toes in the water. Wherever they are on their journey, they’ve faced adversity. And, not only have they tackled it head-on, but they’ve learned from it and now use it as a tool to better their future.

Steve Quigley and his wife, Donna Rothenberger, own and operate Merrymead Farm in Lansdale, Pennsylvania. The family faced a health scare on their farm, which resulted in quite a bit of media scrutiny and a lot of questions from the public. The family saw this as a learning opportunity, and credit their close ties to community with overcoming this challenge. Today, they are doing better than ever—their on-farm creamery is one of my favorite ice cream shops.

Falling Branch Brewery is Harford County, Maryland’s first on-farm brewery. The Galbreath family faced the challenge of changing their former dairy product operation into a brewery, but turned to Farm Credit and others with experience to help them get on the path to success.

They are now one of Maryland’s most popular farm breweries, attracting beer lovers from across the state.

Tim and Kim Austin of Centreville, Maryland left their careers in 2007 to start a poultry operation. After some heavy snowstorms resulted in two of their roofs collapsing, the Austins had a decision to make – do they give up or rebuild? Determined to not let this destruction bring them down, the couple repaired the roofs and haven’t looked back.

John T. Watt established Timber Ridge Fruit Farm, located in Gore, Virginia, in 1948. Today, his grandson, Cordell, is at the helm, and applies everything his grandfather taught him about business to the operation.

When Cordell’s father passed away in 2006, he relied on that knowledge to help him and his family move on, and viewed any changes they made as a means to keep thriving.

They say the only constant is change, right? As I mentioned earlier, it’s important for ag professionals keep up. We’re proud to announce that our Farm Credit Foundation for Agricultural Advancement will be awarding another ten scholarships valued at $10,000 to local ag students in 2019. These talented students are the future of the industry we know and love, and we’re thrilled to support their education. Check out page 13 for more information.

We all face challenges throughout our lives—some bigger than others. It’s how we overcome them that counts, and together, we can do just that.

Happy fall everyone,

VOLUME 23 | Issue 3 | mafc.com | 3

farm and land

TH FA I

, F A M I LY A N D

friends

Story and photos by Sally Scholle | When Steve Quigley married Donna Rothenberger, he knew he was jumping headfirst into farm life at Merrymead Farm in Lansdale, Pennsylvania. Maynard Rothenberger, Steve’s father-in-law, was a long-time dairyman and well-respected in the community. Always the innovator, Maynard switched from a tie-stall barn to a freestall set up in the early 1970s, added cows, and built a milk processing plant and dairy store.

“It’s what we needed.”

G ” FA M I LY B U S says.The N I P family is grateful for Farm P I NCredit’s O E understanding throughout S “H the situation. “Having a good working

The dairy store was a hit among both local residents and out-of-towners who enjoyed purchasing fresh dairy products directly from the farm. By the early 1980s, the family added a small petting zoo and offered school tours to teach children and adults about agriculture. Next came a pumpkin patch, hayrides and added efficiency—always with an eye on safety.

Steve’s brother-in-law Scott Rothenberger has been the herdsman for the 90 cow dairy for almost 20 years and contributes to maintaining a top-notch farm. “Scott is very careful about keeping the operation updated,” says Steve. “He insists on clean, well-trained employees who don’t deviate from the standards.

He’s a stickler for the process, from feeding calves to washing buckets.”

As the agritourism aspect of Merrymead Farm grew, Leah Carr and Kelsey Givler, two of Steve and Donna’s children who were raised on the farm, went away to college. Today, the fifthgeneration sisters are back on the farm training employees, operating the farm market and handling tours.

“I was raised with agritourism,” says Kelsey. “Whether it was making cider donuts, helping out in the fall or running the cash register at the produce stand in the summer, I enjoyed the retail end. The environment for agritourism was already in motion in the summer, and Leah and I have added to that. The next generation has taken what was already established and is growing it.”

Leah says that the majority of their customer base is focused on creating memories. “The general public doesn’t always understand farming, especially

A

since this is a working dairy farm,” she says.

“Today’s generation wants an experience they can give their children.”

Being sticklers for safety and health for both animals and farm visitors turned out to be in the Rothenberger family’s favor when several visitors were sickened after visiting the farm’s petting zoo. Shortly after the initial news reports were released, Steve began to receive phone calls from public relations companies offering their services. He tossed the idea aside, not realizing he’d need help until he spoke with a local woman who explained what they’d be dealing with.

“She became a spokesperson for the family,” says Steve. “She kept the media informed. A family member still had to be there so I became the spokesperson.” Steve says this incident was a huge challenge for the family and their customers. However, the family remained confident and did everything to reassure the media and the public that they take all measures to maintain a clean, safe environment for visitors.

While investigations were in progress, the family designed additional safeguards to ensure visitor safety, including rails to keep hands out of animal pens and signage to prohibit food past certain areas.

“They didn’t find anything, and the investigators were very thorough,” says Leah. “There was nothing and the community was extremely supportive throughout the process.’” However, Leah says the incident has made the family aware that every interaction with the public is important.

Kelsey says their church family was also a big help and visited the farm throughout the ordeal. “People lifted us up when others were knocking us down,” she

OLLAPSED ROOF C O S TW

S:

falling branch brewery

relationship with Farm Credit really helped,” says Steve. “We still had to buy seeds, fix tractors and had other normal operating expenses, and they stood by in support throughout the situation.”

Steve is mindful that Maynard was always willing to share what he knew and help others, and has carried on that tradition. When Steve receives phone calls from across the country from people who have questions about the safety aspects of farm markets and agritainment, he provides advice and support based on his own experience. “We have become better stewards of what we do,” he says. “We look at things differently—what are the pitfalls and strong points?”

Today, Merrymead Farm continues to be a strong pillar of the community, and the family credits friends and neighbors for the ability to withstand a challenge.

“Do it right and be honest with people,” says Steve. “As long as you’re doing the right thing, people understand.

Stand strong, fight for what’s right, and don’t back down.”

For more information regarding hours, events and location, please visit merrymead.com.

can’t stop serenity farm

S TA

NDING STRONG

on a solid plan

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Author’s personal note: During high school, I did an independent study program and chose dairy cattle as my topic. I visited Merrymead Farm, and I’ll always be thankful for Maynard Rothenberger’s willingness to show me around, talk about dairy cattle and fuel my desire to major in animal science at Delaware Valley University. l

The Rothenberger family credits their strong church and community ties for their ability to work through a difficult challenge. Steve Quigley, on the tractor, is a proud father and grandfather, and has provided leadership to the Montgomery County Holstein Association, Agricultural Land Preservation Board and Dairy Heard Information Association (DHIA). He continues to give back through his involvement as a township supervisor and a member of Farm Bureau.

VOLUME 23 | Issue 3 | mafc.com | 5

farm and land

A

“H

G ” FA M I LY B U S N I P IN OP

ES

S:

falling branch brewery Falling Branch Brewery sits on a Harford County Farm that has been passed down for many

COLLAPSED ROOFS O W T

can’t stop serenity farm

generations. Allen and Kim

Galbreath are honored to work with their children to establish success within the agriculture industry and their community.

They believe the family-based atmosphere is what drives their farm to continue its legacy.

NDING STRONG A T S

on a solid plan

| Challenges have always proven to be a factor within the agricultural community. Working against an uphill strain of flexing markets and underlying costs to produce a wholesome product is a stressor among farm families, especially in today’s environment.

Story and photos by Andrea Haines

For Allen and Kim Galbreath of Street, Maryland, and their three children, Alex, Robby, and Elizabeth, keeping the farm economically viable has always been a priority. Agriculture has been an important part of the family’s lives since 1924, when founder Calvin Galbreath established the Highland Heights Farm; his son William soon followed in his footsteps. It wasn’t until the 1980s that brothers Allen and Stewart switched the primary focus from swine to dairy cattle.

“We milked around 300 Holstein cows at the time, but milk prices soon became too difficult to grip and we had 6

| VOLUME 23 | Issue 3 | mafc.com

to make a slight change to stay afloat in the market,” shares Allen. It was in 2004 when Allen and Kim worked together to start Hawks Hill Creamery. “When I was younger, we marketed the creamery at farmers markets and around our community. We now have 16 raw milk cheese varieties that we’ve developed over the past 10 years.” Allen still travels to market the family’s cheeses in Baltimore, Washington D.C., and locally.

Typically, as time progresses, so do the interests of the next generation. The availability of a farm-brewery license classification spiked interest in the fourth

generation, and so, Harford County’s first home brewery, Falling Branch Brewery, was established. “We were excited to develop our products among a unique trend,” says Alex, the brewery’s president.

“My brother, Robby, is the director of marketing and finances, and our sister, Elizabeth, helps when she can.” Alex and his siblings were excited to continue the tradition of the family’s business and keep certain attributes of the farm intact.

Alex developed skills in brewing while in college and planted hops on the farm to eventually use in their beer.

“Our small-batch beer processing began

in 2015, and the beer garden was made

as stated by the family. “We also wanted

about the farm’s history, visit the animals,

available in 2016,” explains Alex. “We had

to choose a name that represented the

and picnic on the open yard,” he says. “We

a lot of challenges with transitioning the

character and roots of our home in Harford

hold special events like crab feasts, corn-

farm from the initial state of producing

County. It was decided to name it after

hole tournaments, and live music, too.”

milk products into a home brewery. That’s

the nearby Falling Branch at Kilgore Falls,

when we sought a small operating loan

Maryland’s second highest waterfall.”

from Farm Credit. There was equipment

Alex was pleasantly reassured that

Farm Credit loan officer Geoffrey Delamater is eager to continue to develop the relationship with the Galbreath family.

that was needed to reach quality standards

visitors were not just interested in the

“Falling Branch has developed an excellent

and we are currently looking at expanding

beer, but for the countryside atmosphere

reputation and large following within the

even more.”

the farm provides. The bank barn was

community,” explains Geoff. “I can see the

converted into a tap room and provides a

brewery continuing to thrive and expand as

for a head brewer. Grant Pfeiffer has been

gathering place for visitors to enjoy their

more people seek a quiet, peaceful setting

the head brewer from day one and was

beverages or entertain guests at private

to spend an afternoon. As the business

involved in the founding of the business.

parties. “Our dairy house is where we brew,”

continues to expand, Farm Credit will be

Formerly of Bel Air, Maryland, he came with

says Alex. The conversion of the building

there every step of the way.” For more

extensive experience in the craft, showing

was a ‘no-brainer’ due to the already

information regarding hours and location

emphasis on “blending the modern

established drain and water supply. “We

for Falling Branch Brewery, please visit

American and Belgian styles of brewing”

also offer guests the opportunity to learn

fallingbranchbeer.com.

The brewery’s quick success called

l

VOLUME 23 | Issue 3 | mafc.com | 7

farm and land

COLLAPSED ROOFS O W T

can’t stop serenity farm

Story by Susan Walker, Photos by Katie Ward and Kim Austin | A lot has changed in Tim and Kim Austin’s life in the last 11 years. In 2007, Tim was an owner-operator truck driver and Kim ran her family daycare, which she still runs today, in the couple’s home in Centreville, Maryland. One day, Tim came home and told his wife there was a 30 acre poultry farm for sale down the road.

Kim remembers, “He said, ‘Let’s buy it.’ I said, ‘You’re not a farmer. We have no farming experience.’”

For some couples, that would have been the end of the discussion. But not for the Austins. Tim introduced himself to the farm owner, worked the farm for several days with him, and decided that this was where he wanted to be.

After purchasing the operation, which they named Serenity Farm, they hit the ground running. They settled on the property and the next Monday, their first flock of chickens was delivered by Mountaire Farms, the integrator they grow for.

“It was an amazing start. We were scared and nervous walking into something we’d never done. We really learned with our first flock,” explains

Kim. “It was hands-on learning. Our Mountaire rep came out, walked us through it, and held our hand with that first flock. Luckily, Tim is a fast learner and anything he touches turns to gold.

We took this farm, which really needed some TLC, and have turned it not only into a successful poultry operation, but also one of the most beautiful corners in Queen Anne’s County.”

Kim is also thankful for the advice and support her Farm Credit loan officer Sharon Redding has provided over the years. “It’s not just a loan. We have a partnership with Farm Credit,” Kim says.

“Sharon really guides us and keeps me thinking about finances, so we make

S TA

NDING STRONG

responsible decisions and have money for tomorrow.”

Sharon adds, “We let Tim and Kim take the lead. We’re here to listen and support them. They’re very good at both the farm and financial management.”

Tim and Kim updated the equipment on the farm, added LED lighting to help tame the high electric bills, tore down one of the old poultry houses and put an addition on the house. Things were going well, and they loved their new life as farmers.

But in February 2010, they faced a huge challenge. Back-to-back heavy snowstorms dropped waist-deep snow on the farm. Kim and her daughter’s

on a solid plan

Determination doesn’t begin to describe poultry farmers Tim and Kim Austin. Even when the roof collapsed on two of their poultry houses during a snowstorm, they kept their heads up, kept working, and came out of the catastrophe stronger than ever. The duo have big plans for their farm’s future, and are excited about what’s to come.

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| VOLUME 23 | ISSUE 3 | mafc.com

boyfriend fought their way through the drifts to check on the poultry houses after the snow stopped falling.

“The door on one of our two newer poultry houses had popped open during the storm. I was going to step into the house, but decided against it,” says Kim. “That’s when I heard my daughter’s boyfriend yelling, ‘The house is falling!’”

As they stood and watched, the roof on the back of the house collapsed.

Seconds later, Kim heard a crack and the roof on the other newer house caved in. Together, the collapsed roofs caused nearly $500,000 in damage, although the costs could have been even higher if there had been chickens in the houses. But this unexpected catastrophe barely slowed Kim and Tim down. Kim worked proactively and tirelessly to get the insurance claim settled and get contractors to the farm to repair the houses.

“We were scared. We had only owned this farm for three years. But we don’t give up. We have determination.

There wasn’t time to sit around and worry. We put chickens in our two smaller houses the following week. We only missed one flock,” she explains. “The repairs were completed, and we were up and running again in less than 60 days.

We came out of it with no scars. We’re all about the success of the recovery, not the tragedy of what happened.”

“They’re a great team. They persevered and turned a daunting situation around,” explains Sharon.

Today, the Austins have four poultry houses and raise four and a half flocks per year, which adds up to 98,000 chickens. They are the only two people who work on the farm, though their adult daughters do help in setting up the poultry houses. They planted their first patch of pumpkins this year with

their grandchildren and daycare kids, and plan to expand into produce and add a market and greenhouse to their operation for their daughters to run and hopefully take over.

Kim hopes to retire from her daycare business, which she has run for 27 years, in a few years and focus on making Serenity Farm a place where kids and their families can learn about the important part farming plays in their lives.

“I want to create an environment where kids can get their hands dirty and experience farming,” she says. “I want to teach them to love the land and understand where their food comes from.

You never know who you might inspire to become a farmer when they grow up. Our life on the farm has been an adventure and I wouldn’t trade it for the world.

Sometimes I drive past our old house and can barely remember that life. Tim and I fit on the farm. It’s where we belong.” l

VOLUME 23 | Issue 3 | mafc.com | 9

farm and land

NDING STRONG A T S

on a solid plan

Story and photos by Andrea Haines | Roots need a solid foundation to grasp for a tree to stand strong against the perils of its life. Much like a tree, a business thrives standing on a solid plan.

An agricultural producer typically wears many hats throughout their career.

Roles of owner, quality control and employer come to mind when overcoming the daily obstacles of farm life, but financial overseer is probably one of the most important positions they must fulfill. For the Watt family of Timber Ridge Fruit Farm in Gore, Virginia, financial planning is on the forefront of the daily operation.

The multi-generational farm was established in 1948 when John T. Watt, the grandfather of current owner Cordell Watt, was at the reigns. The 200 acres of farmland was later passed on to Cordell’s father John Watt, Jr., and he helped to incorporate even more farmland, which generated an equal share of peaches and apples in the 1970s.

This has since changed due to market needs, and the orchard is currently 99 percent dependent on apple production.

Cordell remembers being involved in the farm at a very young age and honors his father with allowing him to participate and learn the many roles it takes to be a successful producer. It’s without saying that one of the hardest obstacles to face is the passing of a loved one, especially if working closely together daily. For Cordell’s family, that transition was no different. “Dad passed away in 2006,” shares Cordell. “I was fortunate to have accepted the knowledge he gave me. I never felt shocked about anything he left behind for us in the business when taking on the leadership role. He prepared me well.”

The transition was an immediate one, and like any agriculture-based business, the financial aspect is typically considered an uphill battle due to markets and fees,

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| VOLUME 23 | Issue 3 | mafc.com

no matter how prepared one feels. “I don’t think our operation is unique in the fact that financially speaking, markets and costs fluctuate regularly,” Cordell explains. “No matter what, you must have a plan and become flexible. Developing relationships with people within the industry who are good at what they do is important, too.”

One person in particular who stands out is Wayne Marston. “He’s our integrated pest management person,” shares Cordell.

Wayne began his relationship with Cordell’s father in 1986 and has since provided knowledge about the industry. “He knows the business well, and we’ve become good friends, too,” he says.

Cordell’s wife Kim has a strong background in finances, so when looking at different strategies to implement within the family business, she was keen on continuing the established relationship with Farm Credit. “I remember being very pleased the first time we sat down with Scott Swaim,” she shares. Scott played a strong role in their relationship with Farm Credit at the time. “He’s become a very good friend,” says Cordell with a smile. Scott’s friendship even took him to Chicago, Illinois, to present the 2013 Apple Grower of the Year award to Cordell. “Cordell and Kim have always had a plan,” says Scott. “Cordell has strong foresight and perspective as a horticulturalist and financial planner.

He’s also a real tribute to his father, as he has already begun to prepare his own children for the next transition.”

“We’ve been involved with Farm Credit for at least 20 years,” says Cordell.

Farm Credit loan officer Jessica Sentelle is

currently working with the family. “The Watt family is enjoyable to work with and has such a strong grasp on what is needed to be successful,” she shares. New implications to the farm have been established to promote resilience with labor changes and weather challenges.

“We built a cold storage and a packing facility,” Cordell explains. “The packing facility was added in 2016, and it has elevated efficiency and production with less labor. The agriculture industry has many challenges with finding and keeping willing laborers, and we are no exception.”

Laborers are employed through the H-2A (United States Department of Labor’s Foreign Worker program). “We have workers from Mexico and Jamaica, which varies greatly upon seasonal need,” he shares.

Another consistent peril is the weather. “Environmental factors are difficult to predict and can have devastating impact on the health of our trees,” explains Cordell. “We try to combat this by establishing our trees, allowing them to grow to a healthy size, and then focusing on fruit production. “ Of course, none of these plans would work well without support from a strong team. “Our staff really helps keep our business running smoothly,” says Cordell. Office Manager Michelle Hartley; General Manager Lee Ware; Packing Manager Andrew Davis; and Bret Patterson, Capital Improvement Overseer are long-time employees, an accolade to the family environment.

These dedicated people, along with a solid plan for the future, are sure to empower the next generation. l

Cordell and Kim Watt know the importance of preparing the next generation for their role in the family business. Cordell’s daughter, Gia (19), and the Watt’s two sons, Eli (7) and Beau (5) are no strangers to the workings of the orchard. Seeing their children on site with their bikes and toys show that the Watts are open about the daily operation of the orchard with the children. Timber Ridge Farm produces 675 acres of apples, 15 acres of peaches and one acre of cherries spanning from the states of Virginia to West Virginia.

VOLUME 23 | Issue 3 | mafc.com | 11

our association

NS A R T

ITION PLANNIN

G

using the team approach DR. ALEX WHITE, VIRGINIA TECH DAIRY SCIENCE

Do you have a “go-to person” for advice? Children often rely on their parents or grandparents, and adults often rely on certain friends. My students rely on Wikipedia, Google, or YouTube. Farmers often rely on their accountant for advice about everything related to the business.

provide an objective look at your business and make recommendations for improving it so that it can support the next generation as you slowly phase out of the operation. If that person has also gone through or witnessed a few family-business transitions, that’s even better!

Relying on only one source of information may not be the best idea when it comes to transition planning. There are many issues related to transition planning that need to be discussed and analyzed: taxes, liability, ease of transfer, management control, communication, cash flow and profitability, etc. You need to develop a transition planning team so that nothing major slips through the cracks.

BUSINESS PARTNERS: You probably want to include your current business partners and your future business partners on your team. After all, chances are you’ll be working with them. In many cases, you’ll at least be related to them! It’s best to get the communication between the partners started as early as possible. Too often, the older generation decides to retain control and not coach/mentor the next generation after the transition becomes “official.” Communication amongst partners is critical, as are the relations between the families of business partners.

So, who should you consider for your transition planning team?

Here’s a list of folks that you might consider: ACCOUNTANT: They are great sources of information on income taxes for different forms of legal organization (LLC, S-corp, etc.) and retirement plans, as well as the estate tax implications of gifts and trusts. Work with an accountant who understands your goals, your business, and your industry. You definitely need the assistance of a qualified accountant!

ATTORNEY: Attorneys can guide you on the legal and liability exposure of different forms of organization. They can discuss the “mechanics” of various estate planning tools such as wills, powers of attorney (POA), advance medical directives (AMD), gifting strategies, and trusts. They can advise you on buy/sell agreements and operating statements for your business. Not all attorneys specialize in estate planning or business planning—choose an attorney who can provide guidance in these areas in a manner that you understand.

FAMILY: Your spouse or significant other probably has a huge impact on your business decisions. Don’t ignore them in this process, as they are crucial to the success of your transition plan.

What about other family members, such as the “non-farm kids” or the in-laws? This gets a little tricky, but I’m going to advise you to include them in the process. Do they have to be involved in every business decision or every meeting? No. But I would invite them to be a part of the process as appropriate. You are probably better off giving them the option to be involved versus keeping them out of the process all together.

MEDIATOR: Let’s face it, there are natural reasons why family communication is limited. That’s why an outside mediator might be a valuable part of your team. This person can get the family members to open up and communicate more clearly. They can ask LENDER/FINANCIAL AGENT: Dollar signs tend to either confuse the tough questions that family members want to ask, but don’t really know how to ask. They can bring up topics that might be or intimidate a lot of people. Having a team member who tough for the family to face. If a family member were to try to do understands, and can explain, the financial implications of your this, it could divide the family forever. If an outsider (the mediator) options can make your life a lot easier. Understanding your does it, the family can hate them for the rest of their lives, but the current and projected financial condition—liquidity, solvency, financial efficiency, profitability, and repayment ability—as well as family should still be intact. the advantages/disadvantages of financial products will allow you Consider developing your transition planning team now so that to make better business decisions. Again, work with a lender and you get better, and clearer information for your decisions. They will financial planner who understands your goals, your family, and provide valuable guidance that can: your industry.

• Reduce your income tax liability INSURANCE AGENT: Insurance can be a powerful tool in transition planning, but too often it is used as a substitute for planning. “Insurance is a tool, and like any tool, it has its proper uses and its “not-so-proper” uses. It can be used to fund buy/sell agreements to purchase the decedent’s share of the business, or it can be used to pass the farm along to the “on-farm child”—the child that gets the farm assets while the “non-farm children” get the life insurance proceeds. Or it can be used for end-of-life medical expenses, as well as final expenses. Work with an insurance agent who has experience in estate planning and business planning.

• • • • • •

Improve the financial condition of your farm Reduce or avoid estate taxes Protect you, your family, and your net worth from liability Help you prepare for your retirement Keep your family business in business (and successful) Keep your family together (and talking to each other)

The next big question is, “what will it cost me to have these folks on my transition team?” I can’t answer that, as it will be different in every situation. Do some research for local professionals in your area, talk to them to see if they are interested and how they would OTHER BUSINESS CONSULTANTS: Some of the most influential like to be compensated for their services.

Can you afford to have a transition team to guide you through people in the agricultural arena are veterinarians, Extension your future? Maybe the better question is, “Can you afford NOT to agents, and crop consultants. Consider having at least one other have a transition team?” business consultant on your transition team. This person can 12

| volume 23 | issue 3 | mafc.com

how would $10,000 help your future in agriculture?

The Farm Credit Foundation for Agricultural Advancement is entering its third year! We’re giving away another ten scholarships in 2019, each valued at $10,000, to students planning to pursue a career in agriculture.

You don’t have to be planning to be a farmer to be eligible. You could be dreaming of being a food scientist, ag teacher, veterinarian, lawyer, or Farm Credit employee!

The scholarship program is open to all high school seniors and those currently enrolled in a higher education program who reside in MidAtlantic Farm Credit’s territory. If you’ve got a passion for agriculture, we want to hear from you!

Applications will be accepted online starting September 28, 2018 through January 11, 2019.

Know someone who should apply? Tell them to check out FCFoundationForAg.org for more

information, including a sneak peak of the application questions. Feel free to call Katie Ward at 888.339.3334 with any questions!

Greenwood, Delaware

Centreville, Maryland

Chestertown, Maryland

Check out this rural property with approximately seven acres of tillable field, two acres of woods and nearly 1,000 feet of road frontage.

Road front lots are a possibility. Barns sold as-is. $179,900.

Fall in love with this property with over 20 acres of woods, ponds, and plenty of wildlife.

Completely remodeled over the past two years with an open floor plan, gourmet kitchen, granite countertops, stainless appliances, and hardwood floors. $452,500.

Build your dream home on 12 acres of mostly wooded property. Peaceful country setting in Queen Anne’s County convenient to Route 301. Enjoy the private wooded acres for nature watching or hunting! $125,000.

Contact Wes Cromer, Masten Realty LLC, 302-448-1032.

Contact Bobby Cary, Rosendale Realty, 410-643-2166.

Contact Trish Hamilton, Rosendale Realty, 410-758-0333.

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Don’t miss this rolling farmland of almost 70 acres! Mostly tillable with incredible views across the fields, babbling brook, and a beautiful home site. Perc approved in 2016, the land features excellent sandy, well-draining soils and useful road frontage. Private, yet accessible quickly to REALTOR RouteOPPORTUNITY 301 and the Bay Bridge. $499,000.

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Contact Michael Rosendale, Rosendale Realty, 410-643-2166

Darlington, Maryland This gorgeous Victorian farm house with renovated farm buildings in Darlington could be yours!

Situated on 100 private acres with nine development rights and some perc work completed, this land is half wooded with a pond, stream, and wildlife and is ideal for farming, contractor, inside storage, or a home based business. $1,500,000.

Properties for sale

community

Contact Ed Garono, RE/MAX American Dream, 410-688-3707. volume 23 | issue 3 | mafc.com | 13

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community Elkton, Maryland

Greensboro, Maryland

Hampstead, Maryland

Check out this stately colonial in the heart of Fair Hill, Maryland. Featuring a lovely stucco/ stone front, two story foyer and great room with fireplace, cherry cabinets, granite, stainless appliances, large master suite, attached and detached garages, guest suite, four horse stalls, four rail vinyl fenced paddock, and in-ground pool. $554,900.

Come home to this spacious, fully-renovated farmhouse and make your country dreams come true. The east facing kitchen was just renovated last year! This 37 acre pastoral paradise is ready to fulfill your country dreams.

Located just about an hour from Annapolis. $695,000.

Picturesque 110 acre farm with a half mile blacktop road for access to a nicely situated farmhouse and outbuildings. The farm has a one acre reserved building lot and is subject to a farmland preservation easement. Same owner since 1954. $900,000.

Contact Tracy Planck, Patterson-Schwartz Real Estate, 302-733-7000.

Contact Deborah J ‘Deb’ Dawkins, Coldwell Banker Residential Brokerage, 410-310-9569.

Contact Larry E. Haines, Haines Realty, 410-876-1616.

Jefferson, Maryland

Quality found throughout this private 25 acre property. A stylish home with attached home office/au pair/in-law suite with a first level bedroom. Featuring hardwood floors, gourmet kitchen, Amish built barn with 8 matted stalls, wash rack, tack/feed room, 40’ x 60’ equipment building, and 100’ x 200’ ring. $1,100,000.00.

Contact Stephen Karbelk, Century 21 New Millennium, 571-481-1037.

Contact Tracy Diamond, RE/MAX Advantage Realty, 410-984-2501.

Potomac, Maryland Enjoy a gorgeous eight acre equestrian estate just 35 minutes from Washington D.C.! Featuring a custom 6,800 square foot five bedroom home with four fireplaces, six stall barn with tack room and wash stall, and huge indoor riding arena.

View your horses from the tranquility of your deck, pool, hot tub or pond. $1,995,000.

Contact Marsha Schuman, Washington Fine Properties, 301-943-9731.

Stevensville, Maryland

Rising Sun, Maryland An adorable 26 acre property well suited for horses with pasture and woods awaits! The land is adjacent to property with farmland preservation and has the North East Creek crossing the back corner. Featuring beautiful views of the great acreage from the rear of the house with about 11 acres tillable. $479,900.

Contact Marion Patrick (Pat) Bagnal, Williams Co Realty, 302-588-7108.

Taylors Island, Maryland

Fall in love with this fantastic 15 acre waterfront farmette with six and a half acres fenced for horses. The property includes a Nelson waterer system, five stall center-aisle barn, workshop/ foaling stable, eight acres in Forrest Stewardship, small vineyard, pier, and a 10,000 square foot custom home with sauna, pond and in-ground pool! $1,750,000.

This amazing waterfront property with all the amenities makes this location a perfect full time home or weekend getaway. The functional and cozy main house combined with the guest house and garage workshop provide the ability to house a large family. Featuring a screened porch, dock with boat lift, guest house with outdoor shower, and shop. $385,000.

Contact Petra Quinn, Realty Navigator, 443-600-1986.

Contact Tim Miller, Benson & Mangold, 410-310-3553.

Thurmont, Maryland Great opportunity to own this unique 10 acre property. One farmhouse and two separate rental houses, barns, stalls and riding ring. A great farm for horses with access to state park trails and mountain views. Featuring the famous Frank Feathers painted mural in the house. $550,000.

Contact Tammy Durbin, Long & Foster, 240-405-3118.

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Mt Airy, Maryland

Check out this 152 acre farm among the rolling hills of Frederick County! The property consists of 133.29 tillable acres, is subject to a conservation easement, and includes a two-unit rental property, 2,445 square foot barn, milk house, and other charming improvements. $1,000,000.

Westminster, Maryland

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Own a piece of history. This farm OPPORTUNITY was once a stop on the Underground Railroad! Featuring a charming brick farmhouse with an in-law suite in the lower level, pond, center aisle 12 stall barn, bank barn, breeding shed, four stall isolation barn, round pen, and many paddocks with run-in REALTOR sheds. $895,000.

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Contact Laura-Lee Jones, Long & Foster, 410-480-3338.

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Annville, Pennsylvania

Grantville, Pennsylvania

Build your dream house and bring your horses to this eight acre lot near the Howard County line! Featuring a hay barn intact and original stone foundations for below-grade outbuildings that could be reclaimed for use, existing well and septic, and a perc test for four bedrooms that requires revalidation. $369,000.

This gorgeous eight and a half acre farmette could be yours! Zoned agricultural and surrounded by 100 acres of preserved farmland with room for a barn and livestock. Featuring four bedrooms, two and a half baths, geo-thermal heat and cooling, an orchard, and cold cellar. The home has an open floor plan for large family dinners and is over 3,500 square feet and 1,242 on the lower level. $650,000.

This gorgeous 20 acre property features a fully remodeled four bedroom farmhouse, a 32 stall horse stable and a boarding facility three miles from Penn National Race Track. Complete with two wash bays, a tack room, office, and bank barn with two drive-in bays and lower level storage. $719,900.

Contact Stephen J. Ferrandi, Maryland Land Advisors, 866-910-5263.

Contact Jody Artz, Howard Hanna Krall Real Estate, 717-507-3530.

Contact Michael Yingling, RE/MAX Delta Group, 717-652-8200.

Kintnersville, Pennsylvania

Morhsville, Pennsylvania

Enjoy this beautiful 16 acre property in Bucks County with privacy! Featuring a four bedroom stone house, a stone summer kitchen or office, barn, stable, pool, and pond. $995,000.

A beautiful mix of large fertile fields, wooded areas, and pasture land awaits just west of Leesport! The land features approximately 128 tillable acres, 19 wooded acres, and 10 pasture acres with four buildings and ponds.

Enjoy a circa 1780 stone farmhouse, heifer barn, dairy barn, and machine storage building. $1,260,000.

Contact Chip Williams, Associate Broker, Long and Foster Real Estate, 610-442-6559

Contact Jonathan Coles, New Pennsylvania Realty, 570-386-5000.

Quicksburg, Virginia

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This breathtaking home on 13+ acres is a must see! Featuring five bedrooms and baths, master bedrooms on both floors, an in-law suite in the basement, stainless appliances, two fireplaces, woodstove insert, dish washer, disposal, garage REALTOR door opener, heat pumps, and more. $475,000. ÂŽ

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Contact Steve Spence, Funkhouser Real Estate Group, 540-271-4593.

Berkeley Springs, West Virginia

Live off the grid in this cabin on 144 acres with a screened porch, stone fireplace and woodstove in living room, kitchen, bedroom, gas appliances and lighting, and upper level open for multiple bunk beds. Contains a well and septic, but needs a gas generator to operate well.

Backs to 22,900 acres of Sleepy Creek public hunting and fishing land. $360,000.

Contact Teresa Seville, Coldwell Banker Premier, 304-671-3515.

Cheriton, Virginia

Properties for sale

Woodbine, Maryland

Check out these nine acres of cleared land on the outskirts of Cheriton close to the Cape Charles stoplight. Zoned commercial. $150,000.

Contact Ralph W. Dodd, Ralph W. Dodd & Associates, LLC, 757-678-5377.

These listings were submitted by individual real estate agents. MidAtlantic Farm Credit is not responsible for typographical errors or pricing discrepancies.

Need financing for any of these properties?*

Call Farm Credit at 888.339.3334.

* Financing availability subject to loan approval and property eligibility. volume 23 | issue 3 | mafc.com | 15

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PRSRT STD U.S. POSTAGE PAID BALTIMORE, MD PERMIT NO. 1608

45 Aileron Court Westminster MD 21157

Reminder: Upcoming Crop Insurance Dates October 1:

Fall Crops Closing date

November 15: Pasture, Rangeland and Forage Closing Date November 20: Apples, peaches and Grapes Closing date Contact your crop insurance agent or call 888.339.3334 to talk to one of our experts today!

Do you have the skills to keep up?

Are you ready to take your business to the next level?

Can’t find time to expand your business skills?

Then AgBiz Masters is perfect for you!

AgBiz Masters is an online learning series that’s designed to provide you with the skills you need, in a format that’s flexible to fit your busy schedule. And all the activities are based around your operation.

Give us a call to find out more or check out agbizmasters.com.

Registration Deadline: October 31, 2018

“AgBiz Masters helped us institute scheduled management meetings—something that is so beneficial for our farm.” ~ Luke & Alison Howard Homestead Farms Queen Anne’s County, MD organic vegetable & grain farm

888.339.3334 | mafc.com |