9 minute read
WELCOME Letter from CEO Michael Reynolds
from FARM CREDIT EAST
by NDSACatalogs
Business Services to Help You Increase Profits
HOW CAN WE PUT OUR PASSION TO WORK FOR YOU?
Sound financial management is critical to growing a profitable agricultural business. At the close of every year, some Northeast farmers, commercial fishermen and forest products producers feel good about about what they accomplished over that past 12 months for their businesses, their employees, their families and for themselves.
While others are disappointed that they earned significantly less than they should in spite of their efforts — not because they didn’t work hard or farm well, but because they lacked the financial management skills to make their businesses more profitable.
As a business owner, proper financial management can help you control your costs, market your product more effectively and ultimately capture more profit. At Farm Credit East, our goal is to help you be a more successful business operator by providing loans and financial management tools that help you enjoy success and reward for your hard work.
Whether you’re a small family business or a large operation with diverse markets, we can provide the financial management support that will help you run your business better and smarter.
The Farm Credit East team specializes in agricultural lending as well as tax planning, business benchmarking and profitability consulting, accounting services, financial software, appraisal, payroll, estate planning, crop insurance, financial planning, and more.
Making your business thrive does not depend on you to be an expert in every task. Helping you make your business profitable and successful for the long haul is our mission at Farm Credit East, and we’re passionate about it.
Give us a call. We look forward to growing our relationship.
Michael J. Reynolds CEO Farm Credit East
Farm Credit East customer Jason Schwab of Schwab Dairy Farm, Delevan, N.Y.
HOW CAN FARM CREDIT EAST HELP YOU INCREASE PROFITS?
For generations, Farm Credit East has worked with thousands of agricultural business owners across the Northeast. Our goal is to provide you not only financing and working capital, but the professional services you will need to find and service your markets, manage your business and grow your profits.
For more about Farm Credit East, visit our website at FarmCreditEast.com.
A COOPERATIVE VS. A BANK
Unlike other lenders who just want your business, we know your business. Farm Credit East is devoted specifically to serving the agricultural, commercial fishing and forest products industries within the Northeast. We are structured as a borrower-owned lending cooperative, so when you become our customer, you too will have the benefits of owner- ship, such as patronage dividends and a vote for candidates running for the Board of Directors.
Most importantly, we give our customers access to credit and financial support in every business cycle, up or down, good seasons and bad. We are staffed with experts who understand agricultural businesses and their markets, and who can bring a wealth of support to your management and accounting team.
A RELATIONSHIP VS. A LOAN
Your relationship with Farm Credit East will most likely begin with the assignment of a loan officer, who will work with you to review the status of your business, obtain credit where needed and arrange for the services that you will need to run your business. These include a vast array of professional services offered at affordable prices and performed on-farm or in our offices, as you prefer. For some customers, we provide ongoing services that help them manage their businesses — processing payroll, taxes and record-keeping, for example. For others, we simply help to train and support on-farm staff with software and advice. The solutions for your business will be matched to your specific needs.
If you grow, breed, process or market agricultural products long-term, Farm Credit East can help you work toward profitability and success. And the best way for us to do this is to work with you all year long, and to help you perform what you’re best at with professional ag business support wherever you need it. We look forward to working with you.
FARM CREDIT EAST
• Leading financial services cooperative for northeastern agricultural businesses • Customers in seven states:
Maine, New Hampshire,
Massachusetts, Connecticut,
Rhode Island, New York and
New Jersey • Billions in loans to capitalize ag businesses • Part of the national Farm
Credit System, founded in 1916 to promote the growth and prosperity of agriculture • A leader in helping small, young and beginning farmers get started in agriculture • Proud sponsors of dozens of agricultural, community and civic activities, including:
FFA Star Farmer, New England
Green Pastures, Cornell Dairy
Fellows, Century Farm Awards and agricultural leadership programs throughout the
Northeast.
THE INDUSTRIES WE SERVE
The benefits of being a Farm Credit East customer
DAIRY
ALL OTHER
COMMERCIAL FISHING
POTATOES
FARM SERVICES
VEGETABLES
FRUIT FEED GRAINS & WHEAT
TIMBER & FOREST PRODUCTS
LIVESTOCK, POULTRY & EGGS
GREENHOUSE, NURSERY & SOD
MARKETING & PROCESSING
• Capacity and commitment to meet the needs of evolving markets • Prompt, local decisions and on-farm service from knowledgeable loan officers and financial service experts • Commitment to supporting all aspects of Northeast agriculture, commercial fishing and forest products • Competitive interest rates and flexible terms to match your seasonal income or other specific needs • Exceptional service on the farm, online or over the phone • Financial cooperative governed by a customer-elected Board of Directors • Ownership allowing you to share in our earnings through our patronage dividends program • Specialized experience focused on your specific business • Online banking so you can manage the financial aspects of your business at your convenience
FREQUENTLY ASKED QUESTIONS
Is Farm Credit East government financed?
No. We are privately funded through the sale of bonds. As one of 70 U.S. financial institutions within the national Farm Credit System, Farm Credit East falls under the regulatory oversight of the Farm Credit Administration.
Is Farm Credit East a commercial bank or a credit union?
Unlike commercial banks and other lenders, Farm Credit East is not a depository institution. We are owned by our member-customers. This cooperative structure is your best assurance that competitively-priced credit will always be available to farmers, fishermen, forest products producers and other agricultural businesses.
What is a cooperative?
Cooperatives are structured so that customers are stockholders who are entitled to share in the earnings of the organization. Patronage dividends are a major advantage when you borrow from Farm Credit East. Being a cooperative also means that we are led by a member-elected Board of Directors.
Where does the money come from?
Funds used in lending operations of the Farm Credit System are obtained chiefly from the sale of bonds to the public. Farm Credit East brings billions of dollars from investors to farm families and cooperatives that need credit.
Do you have to be a member to utilize Farm Credit East’s services?
It depends on the services that you wish to use. For credit services, you must buy stock and therefore become a member. We provide financial services for anyone involved in an agricultural business, including owners, managers, employees and part-time farmers as well as commercial fishing and forest products businesses, and agricultural processing and and marketing businesses. Agricultural cooperatives borrow from Farm Credit through our affiliated lending institution, CoBank.
What does Farm Credit East do for young, beginning, small and veteran farmers?
We have a number of programs to help support talented, hardworking individuals enter the agriculture, commercial fishing and forest products industry. Helping young people get started is one of our long-term commitments to Northeast agriculture. Programs include our young, beginning, small and veteran farmer incentives, FarmStart and GenerationNext.
A VIEW FROM THE FIELD
“It is rewarding to be able to work with beginning farmers through the early stages of their business and see how their hard work pays off over the next few years.” – Kathryn Bisson, FarmStart Advisor
Steven Christianson, owner of Christianson Farm, LLC, in Readfield, Maine, and his wife, Caroline and their son, Easten, along with their FarmStart advisor Kathryn Bisson, from Farm Credit East’s Auburn, Maine, office.
THE MISSION: SECURE CREDIT FOR A BEGINNING FARM OPERATION
Steven Christianson, owner of Christianson Farm, LLC, operates a diversified business, growing a mix of vegetables for the operation’s retail farm stand. He also raises beef and hogs and grows the hay and grain crops to feed his animals, and to sell to others.
Although he’d been farming for a few years, Steven had a hard time securing commercial financing because he only had two years of crop and tax records. “Then I learned about FarmStart and they were willing to work with me,” said Steven.
HOW WE HELPED
The FarmStart program invests working capital of up to $75,000 in northeast agriculture, fishing and forest products ventures showing promise of success. After speaking with Steven, his FarmStart advisor, Kathryn Bisson, knew that Christianson Farm would be a great fit for the program.
Kathryn explained, “As a FarmStart advisor, I have a greater advisory role with FarmStart customers when compared with traditional lending relationships. I assist in the preparation of business plans, the tracking and follow up of management goals and objectives, while also helping to connect customers with other Farm Credit East resources.”
A VIEW FROM THE FIELD
THE MISSION: IMMEDIATE EXPANSION
The Crists came to Farm Credit East to expand their business after increasing the volume of their apple production and missing key sales dates due to breakdowns and other holdups. The family’s solution was to replace their out-of-date packinghouse with a state-of-the art facility that would make them more competitive and efficient. Knowing that swings in agricultural markets would make financing hard to obtain from a commercial lender, they turned to Farm Credit East.
“Farm Credit East is a true partner and ahead of the curve as a lender. Their representatives are facilitators, not road blockers. Credit availability tied to competitive interest rates, crop insurance and regular patronage refunds have positively impacted our business. We could not have carried out many of our projects with any other lender.” – Jeff Crist
HOW WE HELPED
Farm Credit East was instrumental in funding an expansion that better prepared them to profit from key agricultural cycles. Their Farm Credit East loan officer’s understanding of the Crists’ business and industry needs helped shepherd the loan through to meet their specific needs.
When Crist Bros. Orchards in Walden, N.Y., wanted to expand their business, they turned to Farm Credit East. Here is Jennifer, Jeff and Joy Crist in their state-of-the-art packing facility.
