2015 Fall Yields

fall 2015 PO Box 2515 Spokane, Washington 99220-2515

This institution is an equal opportunity provider and employer. *Serviced through Northwest Farm Credit Services Insurance Agency.

New address?

Please notify your local Northwest FCS branch.

Your trusted source.

We support agriculture and rural communities with reliable, consistent credit and financial services, today and tomorrow.

Gordon, Glenn and Gayle Goschie

Business is Hoppin’

· Real Estate Financing · Operating Lines of Credit · Country Home & Lot Loans · Crop Insurance*

800.743.2125 northwestfcs.com

Nestled in Oregon’s lush Willamette Valley, Goschie Farms has been growing hops for 111 years.

Here to Help You Grow

Who We Are: fall 2015

Feature Story

3-8

Disaster Assistance Outside Expert: Dave Kohl

9 11-12

Security Awareness BMC Programs

13 15-16

Northwest Farm Credit Services supports agriculture and rural communities with reliable, consistent credit and financial services, today and tomorrow.

Our Board of Directors: Dave Hedlin – Chair, Mount Vernon, WA Jim Farmer – Vice Chair, Nyssa, OR Christy Burmeister-Smith – Newman Lake, WA Susan Doverspike – Burns, OR Duane (Skip) Gray – Albany, OR John Helle – Dillon, MT Greg Hirai – Wendell, ID Herb Karst – Billings, MT Dave Nisbet – Bay Center, WA Kevin Riel – Yakima, WA

Responding Quickly to Change Phil DiPofi – President and CEO

Nate Riggers – Nez Perce, ID Karen Schott – Broadview, MT Julie Shiflett – Spokane, WA Shawn Walters – Newdale, ID

About Yields: Yields is produced for customers of Northwest FCS, an Agricultural Credit Association.

Comments and story ideas can be sent to the Marketing Team, c/o Northwest FCS, P.O. Box 2515, Spokane, Washington 99220-2515. website: northwestfcs.com

The Northwest is an exciting place to do business. Unlike many areas of the country and the world, Northwest producers raise a diverse mix of more than 200 different commodities and specialty crops.

Today, more consumers are looking for products that are grown locally and sustainably. They want to know the story behind where their food comes from. Consumer demand, demographics and lifestyles are changing. And Northwest producers are extremely well positioned to meet these demands both here and in other parts of the world.

Producers we work with in the Northwest are highly in tune to changes happening in the marketplace.

We’ve watched you recognize the trends and adapt your businesses. Your flexibility and entrepreneurial spirit has been demonstrated over and over again.

As a lender in the Northwest, we must also stay closely in tune with the markets. This is especially true for niche markets and specialty crops. If there’s a significant change, we’re uniquely positioned to support you through the volatility that the future brings.

Goschie Farms was one of the first hop growers in the U.S. to contract directly with Anheuser-Busch in the 1970s.

While there are many different commodities to monitor, the diversity of the Northwest makes it very exciting. Rest assured, we will do our very best to understand your business and markets, earn your trust and support you as situations change.

But, no one could have predicted the 2008 takeover of AB by Belgium conglomerate InBev who drastically cut hop procurement. Lucky for Goschie Farms, a group of small, independent craft brewers were bucking the big-business brews. For the first

1

time ever, craft brewers reached double-digit market share in

Northwest Farm Credit Services is an equal opportunity employer and does not discriminate on the basis of race, color, religion, sex, national origin, marital status, age, disability, disabled veteran, Vietnam era or other eligible veteran status.

2014, while the total U.S. beer market was up just 0.5 percent.

Article quotes have been edited for content and appropriateness.

Northwest Farm Credit Services

fall 2015

2

Who We Are: fall 2015

Feature Story

3-8

Disaster Assistance Outside Expert: Dave Kohl

9 11-12

Security Awareness BMC Programs

13 15-16

Northwest Farm Credit Services supports agriculture and rural communities with reliable, consistent credit and financial services, today and tomorrow.

Our Board of Directors: Dave Hedlin – Chair, Mount Vernon, WA Jim Farmer – Vice Chair, Nyssa, OR Christy Burmeister-Smith – Newman Lake, WA Susan Doverspike – Burns, OR Duane (Skip) Gray – Albany, OR John Helle – Dillon, MT Greg Hirai – Wendell, ID Herb Karst – Billings, MT Dave Nisbet – Bay Center, WA Kevin Riel – Yakima, WA

Responding Quickly to Change Phil DiPofi – President and CEO

Nate Riggers – Nez Perce, ID Karen Schott – Broadview, MT Julie Shiflett – Spokane, WA Shawn Walters – Newdale, ID

About Yields: Yields is produced for customers of Northwest FCS, an Agricultural Credit Association.

Comments and story ideas can be sent to the Marketing Team, c/o Northwest FCS, P.O. Box 2515, Spokane, Washington 99220-2515. website: northwestfcs.com

The Northwest is an exciting place to do business. Unlike many areas of the country and the world, Northwest producers raise a diverse mix of more than 200 different commodities and specialty crops.

Today, more consumers are looking for products that are grown locally and sustainably. They want to know the story behind where their food comes from. Consumer demand, demographics and lifestyles are changing. And Northwest producers are extremely well positioned to meet these demands both here and in other parts of the world.

Producers we work with in the Northwest are highly in tune to changes happening in the marketplace.

We’ve watched you recognize the trends and adapt your businesses. Your flexibility and entrepreneurial spirit has been demonstrated over and over again.

As a lender in the Northwest, we must also stay closely in tune with the markets. This is especially true for niche markets and specialty crops. If there’s a significant change, we’re uniquely positioned to support you through the volatility that the future brings.

Goschie Farms was one of the first hop growers in the U.S. to contract directly with Anheuser-Busch in the 1970s.

While there are many different commodities to monitor, the diversity of the Northwest makes it very exciting. Rest assured, we will do our very best to understand your business and markets, earn your trust and support you as situations change.

But, no one could have predicted the 2008 takeover of AB by Belgium conglomerate InBev who drastically cut hop procurement. Lucky for Goschie Farms, a group of small, independent craft brewers were bucking the big-business brews. For the first

1

time ever, craft brewers reached double-digit market share in

Northwest Farm Credit Services is an equal opportunity employer and does not discriminate on the basis of race, color, religion, sex, national origin, marital status, age, disability, disabled veteran, Vietnam era or other eligible veteran status.

2014, while the total U.S. beer market was up just 0.5 percent.

Article quotes have been edited for content and appropriateness.

Northwest Farm Credit Services

fall 2015

2

feature story

Glenn Goschie

Harvest is in full swing at Goschie Farms, one of the largest commercial hop growers in Oregon. This year they will harvest close to 500 acres of hops, a process that runs 24-hours a day for four to five weeks. Nearly all of the hops grown in the United States come from the Pacific Northwest. Washington leads U.S. hop production at 73 percent, followed by Oregon at 16 percent and Idaho at 11 percent.

Hops generally fall into two categories. Alpha hops, sometimes known as bitter hops, lend their signature flavor to beer. The higher the percent of alpha, the less hops are required to make beer. The very high alpha hops are typically considered a commodity. Custom-

“Back then everything was handpicked,” says Glenn.

The big change came with mechanization for harvesting and processing in the 1940s.”

3

Northwest Farm Credit Services

ers want the cheapest, most potent hops they can buy. On the other hand, aroma hop varieties – typically grown in Oregon – are used in various stages of brewing to add unique scents, as well as taste.

Until fifteen years ago, most Americans were only familiar with beer made with much less flavor. If they wanted anything else, they had to look to European brews.

Through a series of stair-step conveyor belts hop cones are further separated from excess plant material.

fall 2015

4

feature story

Glenn Goschie

Harvest is in full swing at Goschie Farms, one of the largest commercial hop growers in Oregon. This year they will harvest close to 500 acres of hops, a process that runs 24-hours a day for four to five weeks. Nearly all of the hops grown in the United States come from the Pacific Northwest. Washington leads U.S. hop production at 73 percent, followed by Oregon at 16 percent and Idaho at 11 percent.

Hops generally fall into two categories. Alpha hops, sometimes known as bitter hops, lend their signature flavor to beer. The higher the percent of alpha, the less hops are required to make beer. The very high alpha hops are typically considered a commodity. Custom-

“Back then everything was handpicked,” says Glenn.

The big change came with mechanization for harvesting and processing in the 1940s.”

3

Northwest Farm Credit Services

ers want the cheapest, most potent hops they can buy. On the other hand, aroma hop varieties – typically grown in Oregon – are used in various stages of brewing to add unique scents, as well as taste.

Until fifteen years ago, most Americans were only familiar with beer made with much less flavor. If they wanted anything else, they had to look to European brews.

Through a series of stair-step conveyor belts hop cones are further separated from excess plant material.

fall 2015

4

4

business is hoppin’

1

Hops are grown on 18 ft. tall trellises. At harvest the bottom bines are cut first. Before mechanization, the bines were cut by hand with a machete.

The growing tradition Siblings Gordon, Gayle and Glenn Goschie are now managing the family business. They say much has changed since their grandparents started growing the pale green hop cones in the early 1900s.

“Back then everything was handpicked,” says Glenn. “Hops were a cash crop and a lot of farmers grew five to 10 acres. Most of the hops went through a distributor or broker and there were multiple dealers in the area. The big change came with mechanization for harvesting and processing in the 1940s. It took more acres to justify the expense and a lot of growers were faced with the choice to get bigger or get out.

Now we’re down to a small group of larger growers.”

2

Working with the King of Beers Harvest equipment cuts the top next and bines are carefully loaded into the trailer.

The next big shift in the industry happened when Anheuser-Busch wanted to contract directly with hop growers instead of using a middleman. Glenn, Gayle and Gordon’s dad Herman and three other growers participated in the first trial program. After several years of success, AB opened the grower-direct program to hop farmers in the Northwest and across the country.

“At the time I remember growers coming to my dad because they were unsure about whether to participate,” says Glenn. “They wanted to know if he was satisfied with the relationship. Our relationship with AB was excellent. It was good for the brewer and good for the grower. AB had some of the highest quality standards in the business. They knew what we had and we knew what they wanted.”

3

Bines are hooked upside down (bottom side up) in the process to open up the bines for processing.

For more than three decades Goschie Farms sold hops directly to AB. Mr. Busch visited their farm on a number of occasions. As far as the Goschies knew, their relationship with the largest brewer in the U.S. was rock solid.

In the cleaning process bines are stripped and fans blow air against the stream of material – cones, stems and leaves – to begin the separation process.

“We used to talk about the fact that we had pretty much all our eggs in one basket,” says Gayle. “Eighty percent of our hop business was coming from one company. By the end of the conversation we’d look at each other and say, ‘But it’s Anheuser-Busch. What’s more solid than that? I guess we learned our lesson there.”

Discovering a new market The hostile takeover of AB went largely unreported in 2008 as the world tumbled into economic crisis. But, hop growers would soon feel the impact. InBev quickly instituted a new beer formula that used less hops. Mr. Busch always wanted at least two years supply on hand, but InBev wanted just-in-time inventory and started drawing down grower contracts. The move left many hop growers – especially those with exclusive contracts with AB – nervous and fearful. In Oregon alone, hop production fell 25 percent.

Gayle was curious about what was happening in the craft brew industry in Portland. Brewers who literally started making beer in their garages were now growing sophisticated businesses. And, they were using all sorts of aroma hops. When the AB business shrank Gayle reached out to the small craft brewers. With excess acreage, she wanted to know what hop varieties made sense for an Oregon producer to grow. It was the beginning of a new hop era.

“Suddenly beer consumers were identifying with hops,” says Gayle.

“Like a lot of food products, they wanted to know more about where and how the hops were grown. We were the first grower to have our hops certified Salmon Safe. It made sense. Salmon Safe is an ecolabel that shows our land management practices help preserve Pacific salmon in West Coast watersheds. We realized the consumer of Oregon wine and the consumer of craft beer was the same person.

They wanted more education – almost as a form of social entertainment – and craft brewers needed to help them connect the dots. It was an opportunity for us to come together.”

5

Through a series of stair-step conveyor belts hop cones are further separated from excess plant material.

6

The cones are spread out and dried in natural-gas-powered kilns at temperatures between 125 and 135 degrees.

Building customer relationships Goschie Farms couldn’t have been in a better spot with Oregon-based breweries like Bridgeport and Deschutes. They expanded into California with breweries like Sierra Nevada and east into Colorado, Michigan and Wisconsin. Today Goschie Farms works with 15 different craft breweries, none of which holds a dominant share of their business.

1

Northwest Farm Credit Services

fall 2015

6

4

business is hoppin’

1

Hops are grown on 18 ft. tall trellises. At harvest the bottom bines are cut first. Before mechanization, the bines were cut by hand with a machete.

The growing tradition Siblings Gordon, Gayle and Glenn Goschie are now managing the family business. They say much has changed since their grandparents started growing the pale green hop cones in the early 1900s.

“Back then everything was handpicked,” says Glenn. “Hops were a cash crop and a lot of farmers grew five to 10 acres. Most of the hops went through a distributor or broker and there were multiple dealers in the area. The big change came with mechanization for harvesting and processing in the 1940s. It took more acres to justify the expense and a lot of growers were faced with the choice to get bigger or get out.

Now we’re down to a small group of larger growers.”

2

Working with the King of Beers Harvest equipment cuts the top next and bines are carefully loaded into the trailer.

The next big shift in the industry happened when Anheuser-Busch wanted to contract directly with hop growers instead of using a middleman. Glenn, Gayle and Gordon’s dad Herman and three other growers participated in the first trial program. After several years of success, AB opened the grower-direct program to hop farmers in the Northwest and across the country.

“At the time I remember growers coming to my dad because they were unsure about whether to participate,” says Glenn. “They wanted to know if he was satisfied with the relationship. Our relationship with AB was excellent. It was good for the brewer and good for the grower. AB had some of the highest quality standards in the business. They knew what we had and we knew what they wanted.”

3

Bines are hooked upside down (bottom side up) in the process to open up the bines for processing.

For more than three decades Goschie Farms sold hops directly to AB. Mr. Busch visited their farm on a number of occasions. As far as the Goschies knew, their relationship with the largest brewer in the U.S. was rock solid.

In the cleaning process bines are stripped and fans blow air against the stream of material – cones, stems and leaves – to begin the separation process.

“We used to talk about the fact that we had pretty much all our eggs in one basket,” says Gayle. “Eighty percent of our hop business was coming from one company. By the end of the conversation we’d look at each other and say, ‘But it’s Anheuser-Busch. What’s more solid than that? I guess we learned our lesson there.”

Discovering a new market The hostile takeover of AB went largely unreported in 2008 as the world tumbled into economic crisis. But, hop growers would soon feel the impact. InBev quickly instituted a new beer formula that used less hops. Mr. Busch always wanted at least two years supply on hand, but InBev wanted just-in-time inventory and started drawing down grower contracts. The move left many hop growers – especially those with exclusive contracts with AB – nervous and fearful. In Oregon alone, hop production fell 25 percent.

Gayle was curious about what was happening in the craft brew industry in Portland. Brewers who literally started making beer in their garages were now growing sophisticated businesses. And, they were using all sorts of aroma hops. When the AB business shrank Gayle reached out to the small craft brewers. With excess acreage, she wanted to know what hop varieties made sense for an Oregon producer to grow. It was the beginning of a new hop era.

“Suddenly beer consumers were identifying with hops,” says Gayle.

“Like a lot of food products, they wanted to know more about where and how the hops were grown. We were the first grower to have our hops certified Salmon Safe. It made sense. Salmon Safe is an ecolabel that shows our land management practices help preserve Pacific salmon in West Coast watersheds. We realized the consumer of Oregon wine and the consumer of craft beer was the same person.

They wanted more education – almost as a form of social entertainment – and craft brewers needed to help them connect the dots. It was an opportunity for us to come together.”

5

Through a series of stair-step conveyor belts hop cones are further separated from excess plant material.

6

The cones are spread out and dried in natural-gas-powered kilns at temperatures between 125 and 135 degrees.

Building customer relationships Goschie Farms couldn’t have been in a better spot with Oregon-based breweries like Bridgeport and Deschutes. They expanded into California with breweries like Sierra Nevada and east into Colorado, Michigan and Wisconsin. Today Goschie Farms works with 15 different craft breweries, none of which holds a dominant share of their business.

1

Northwest Farm Credit Services

fall 2015

6

business is hoppin’

7

Hops are then cooled for 10 to 12 hours, allowing excess moisture to dissipate.

Craft brewers are known for their fun, pioneering spirits. They’re passionate about their brews and curious to discover the next great taste. Many of them will visit Goschie Farms at some point during the year to learn more about the crop and deepen the personal relationship with their grower.

“We can have two or three breweries a day visit during harvest,” says Gayle. “It’s great fun. Last weekend we had a group from Base Camp Brewing who rode their cargo bikes down from Portland. One bike was hauling a large speaker so they even had their own music. They picked up 200 pounds of fresh hops and rode right back to the brewery. Craft brewers do all sorts of fun, crazy stuff.”

Managing risk

8

Whole-cone hops are compressed into 200-lb. bails before they’re placed in cold storage. In bailed form, hops can hold their brewing characteristics for about 18 months.

Looking to the future Craft brewers are exceptionally crafty. There’s no end to the new ideas and brews being put on tap today. In fact, U.S. craft breweries are opening in Germany and Sweden. Young European brewers now want access to U.S. hops to put more unique flavors into their beers. As the industry continues to innovate and evolve Goschie Farms will be positioning for the future.

“We’re a relatively large operation, but rather nimble in the way we manage our business,” says Gayle. “We’ve grown as we’ve needed to add capacity. I think it goes back to all those years of doing experiments on the farm with different varieties. We’ve always been curious. The longer I do anything in this world the more I realize that curiosity is what you need to make it all spin.”

“It has been extremely valuable to be part of a partnership with Northwest Farm Credit. It’s one part of our business that has remained stable.”

Goschie Farms used to grow three hop varieties for one major brewer.

Today they’re growing 10 different varieties that appeal to unique craft brewer preferences. With each new variety they’ve experimented with just two to five acres before moving to full scale production. The challenge for brewers and growers alike is not taking on more than they can handle because producing a quality product is always the end goal.

“When I have conversations with brewers across the country they admit they’ve created a monster,” says Gayle. “Today the consumer expects to walk into any brewery and order what’s new. How do you deal with the flavor of the month? There are some very talented, creative brewers in the U.S. and around the world. There are about 100 different hop varieties that are available in some volume, but they’re not all going to be mainstay hops. We have to be careful and build a business model that doesn’t allow the tail to wag the whole dog.”

“Goschie Farms has done a really good job of staying ahead of the curve and identifying their risk,” says Northwest FCS Relationship Manager Eric Henny. “They look for what the customer wants and they see the trends. They’ve managed extremely well through two major transitions in the industry. The change with AB could have been devastating, but they positioned themselves to be successful.”

“When I have conversations with craft brewers across the country they admit they’ve created a monster,” says Gayle.

7

Northwest Farm Credit Services

“We moved very quickly when we needed to move quickly,” says Gayle. “Instead of sitting back and waiting for a more secure time to enter a new market we moved ahead and experimented with new varieties. It has been extremely valuable to be part of a partnership with Northwest Farm Credit. It’s one part of our business that has remained stable.”

Gayle Goschie with Northwest FCS Relationship Manager Eric Henny.

fall 2015

8

business is hoppin’

7

Hops are then cooled for 10 to 12 hours, allowing excess moisture to dissipate.

Craft brewers are known for their fun, pioneering spirits. They’re passionate about their brews and curious to discover the next great taste. Many of them will visit Goschie Farms at some point during the year to learn more about the crop and deepen the personal relationship with their grower.

“We can have two or three breweries a day visit during harvest,” says Gayle. “It’s great fun. Last weekend we had a group from Base Camp Brewing who rode their cargo bikes down from Portland. One bike was hauling a large speaker so they even had their own music. They picked up 200 pounds of fresh hops and rode right back to the brewery. Craft brewers do all sorts of fun, crazy stuff.”

Managing risk

8

Whole-cone hops are compressed into 200-lb. bails before they’re placed in cold storage. In bailed form, hops can hold their brewing characteristics for about 18 months.

Looking to the future Craft brewers are exceptionally crafty. There’s no end to the new ideas and brews being put on tap today. In fact, U.S. craft breweries are opening in Germany and Sweden. Young European brewers now want access to U.S. hops to put more unique flavors into their beers. As the industry continues to innovate and evolve Goschie Farms will be positioning for the future.

“We’re a relatively large operation, but rather nimble in the way we manage our business,” says Gayle. “We’ve grown as we’ve needed to add capacity. I think it goes back to all those years of doing experiments on the farm with different varieties. We’ve always been curious. The longer I do anything in this world the more I realize that curiosity is what you need to make it all spin.”

“It has been extremely valuable to be part of a partnership with Northwest Farm Credit. It’s one part of our business that has remained stable.”

Goschie Farms used to grow three hop varieties for one major brewer.

Today they’re growing 10 different varieties that appeal to unique craft brewer preferences. With each new variety they’ve experimented with just two to five acres before moving to full scale production. The challenge for brewers and growers alike is not taking on more than they can handle because producing a quality product is always the end goal.

“When I have conversations with brewers across the country they admit they’ve created a monster,” says Gayle. “Today the consumer expects to walk into any brewery and order what’s new. How do you deal with the flavor of the month? There are some very talented, creative brewers in the U.S. and around the world. There are about 100 different hop varieties that are available in some volume, but they’re not all going to be mainstay hops. We have to be careful and build a business model that doesn’t allow the tail to wag the whole dog.”

“Goschie Farms has done a really good job of staying ahead of the curve and identifying their risk,” says Northwest FCS Relationship Manager Eric Henny. “They look for what the customer wants and they see the trends. They’ve managed extremely well through two major transitions in the industry. The change with AB could have been devastating, but they positioned themselves to be successful.”

“When I have conversations with craft brewers across the country they admit they’ve created a monster,” says Gayle.

7

Northwest Farm Credit Services

“We moved very quickly when we needed to move quickly,” says Gayle. “Instead of sitting back and waiting for a more secure time to enter a new market we moved ahead and experimented with new varieties. It has been extremely valuable to be part of a partnership with Northwest Farm Credit. It’s one part of our business that has remained stable.”

Gayle Goschie with Northwest FCS Relationship Manager Eric Henny.

fall 2015

8

disaster assistance

More Than a Million Acres Burned More than a million acres has burned in wildfires across the Northwest during one of the hottest and driest summers ever across the region. It will be months – even years – before the full impact of these fires on Northwest farmers and ranchers will be known.

While every state in the Northwest experienced some degree of damage, Washington was particularly hard hit. There are no hard numbers yet, but livestock losses are estimated to be 700 to 1,000 cows, calves and yearlings, in addition to horses and other animals. Jack Field, Executive Vice-President of the Washington Cattlemen’s Association estimates 100 miles of fence has been destroyed.

Most Washington orchardists are still taking stock of the damage. Because orchards are watered heavily, most damage has been on the perimeters. The biggest challenge will be the loss of deer fencing. With extensive destruction of natural deer habitat, deer will be more likely to gravitate to the orchards.

The network to aid farmers and ranchers is still taking shape, with many agencies and farm groups trying to figure out how to help. Northwest FCS has contributed to numerous relief efforts including the American Red Cross, a number of cattlemen’s associations and community organizations. As needs arise we will continue to lend our support.

Disaster Assistance Program for Northwest FCS customers Northwest FCS has also launched a new Disaster Assistance Program for our customers. The DAP provides immediate loan servicing and lending assistance to customers directly affected by fires, floods, drought or other disasters.

Disaster Assistance Program for existing loans: • Quicker action with less paperwork.

• Extensions for loan payments or operating maturity.

• Reduced interest rates for operating loans.

• Deferred loan payments and re-amortization for installment loans.

Disaster Assistance Program for new loans: • Reduced interest rates for operating loans.

• Working Capital Restoration Loans to refinance working capital or operating carryover.

• Reduced interest rates on loans to replace or repair capital assets.

For more information on the Northwest FCS Disaster Assistance Program contact your Northwest FCS representative.

9

Northwest Farm Credit Services

rural community grants

Investing in Rural Communities Northwest FCS’ strong financial position allows us to continue to invest in the rural communities we serve. From community centers to medical facilities, emergency response systems to city parks, we’re committed to giving back to the rural communities where we live and work. Since the program started in 2007, Northwest FCS has awarded more than $800,000 in Rural Community Grants.

Jackson’s Garden Sheridan, Mont.

“The community volunteers at Jackson’s Garden would like to thank Northwest Farm Credit Services for a grant towards the construction of a new equipment storage building to house our tractor, tillers and mowers,” said Carla Marsh. “The existing garage will be converted into a classroom and meeting area for workshops and community events with a handicapped-accessible restroom and a small kitchen.”

Gooding Soil Conservation District Gooding, Idaho

“The Gooding Soil Conservation District is so grateful for the grant to continue our efforts with the Community Garden,” said Barbara Messick. “It was perfect timing as we were getting ready to plant a warm season cover crop demonstration plot and bedding plants for the summer. We couldn’t do it without the help of the Northwest FCS grant opportunities. Thank you!”

Deadlines are: Feb. 1, June 1 and Oct.1 of each year.

Sprague Horizon Community Center Sprague, Wash.

“The community at large has taken on the renovation of the Sprague Community Center,” says Patricia Busby. “Sprague Horizons wanted to do something for the center also, but our fundraising is limited.

With the grant from Northwest Farm Credit Services we now have enough money to purchase kitchen supplies and a dishwasher for the kitchen in the center. Thank you for this award money.”

Roseburg FFA Roseburg, Ore.

“We would like to thank Northwest Farm Credit for giving us this rural grant,” says Roseburg FFA Advisor Megan Dilson. “One of the objectives of our agricultural education program is to educate our students through career development events in addition to classes for students to explore options after high school. This grant has allowed us to purchase much-needed forestry equipment to teach students about timber scaling and surveying. Our class is more hands-on because of this grant and we are thankful for this opportunity.”

Visit: northwestfcs.com/rural grants for more information

fall 2015

10

disaster assistance

More Than a Million Acres Burned More than a million acres has burned in wildfires across the Northwest during one of the hottest and driest summers ever across the region. It will be months – even years – before the full impact of these fires on Northwest farmers and ranchers will be known.

While every state in the Northwest experienced some degree of damage, Washington was particularly hard hit. There are no hard numbers yet, but livestock losses are estimated to be 700 to 1,000 cows, calves and yearlings, in addition to horses and other animals. Jack Field, Executive Vice-President of the Washington Cattlemen’s Association estimates 100 miles of fence has been destroyed.

Most Washington orchardists are still taking stock of the damage. Because orchards are watered heavily, most damage has been on the perimeters. The biggest challenge will be the loss of deer fencing. With extensive destruction of natural deer habitat, deer will be more likely to gravitate to the orchards.

The network to aid farmers and ranchers is still taking shape, with many agencies and farm groups trying to figure out how to help. Northwest FCS has contributed to numerous relief efforts including the American Red Cross, a number of cattlemen’s associations and community organizations. As needs arise we will continue to lend our support.

Disaster Assistance Program for Northwest FCS customers Northwest FCS has also launched a new Disaster Assistance Program for our customers. The DAP provides immediate loan servicing and lending assistance to customers directly affected by fires, floods, drought or other disasters.

Disaster Assistance Program for existing loans: • Quicker action with less paperwork.

• Extensions for loan payments or operating maturity.

• Reduced interest rates for operating loans.

• Deferred loan payments and re-amortization for installment loans.

Disaster Assistance Program for new loans: • Reduced interest rates for operating loans.

• Working Capital Restoration Loans to refinance working capital or operating carryover.

• Reduced interest rates on loans to replace or repair capital assets.

For more information on the Northwest FCS Disaster Assistance Program contact your Northwest FCS representative.

9

Northwest Farm Credit Services

rural community grants

Investing in Rural Communities Northwest FCS’ strong financial position allows us to continue to invest in the rural communities we serve. From community centers to medical facilities, emergency response systems to city parks, we’re committed to giving back to the rural communities where we live and work. Since the program started in 2007, Northwest FCS has awarded more than $800,000 in Rural Community Grants.

Jackson’s Garden Sheridan, Mont.

“The community volunteers at Jackson’s Garden would like to thank Northwest Farm Credit Services for a grant towards the construction of a new equipment storage building to house our tractor, tillers and mowers,” said Carla Marsh. “The existing garage will be converted into a classroom and meeting area for workshops and community events with a handicapped-accessible restroom and a small kitchen.”

Gooding Soil Conservation District Gooding, Idaho

“The Gooding Soil Conservation District is so grateful for the grant to continue our efforts with the Community Garden,” said Barbara Messick. “It was perfect timing as we were getting ready to plant a warm season cover crop demonstration plot and bedding plants for the summer. We couldn’t do it without the help of the Northwest FCS grant opportunities. Thank you!”

Deadlines are: Feb. 1, June 1 and Oct.1 of each year.

Sprague Horizon Community Center Sprague, Wash.

“The community at large has taken on the renovation of the Sprague Community Center,” says Patricia Busby. “Sprague Horizons wanted to do something for the center also, but our fundraising is limited.

With the grant from Northwest Farm Credit Services we now have enough money to purchase kitchen supplies and a dishwasher for the kitchen in the center. Thank you for this award money.”

Roseburg FFA Roseburg, Ore.

“We would like to thank Northwest Farm Credit for giving us this rural grant,” says Roseburg FFA Advisor Megan Dilson. “One of the objectives of our agricultural education program is to educate our students through career development events in addition to classes for students to explore options after high school. This grant has allowed us to purchase much-needed forestry equipment to teach students about timber scaling and surveying. Our class is more hands-on because of this grant and we are thankful for this opportunity.”

Visit: northwestfcs.com/rural grants for more information

fall 2015

10

outside expert

Do your homework The first step of the journey is market research. Adequate research is needed to ascertain size, scope and duration of the marketing opportunity. It may be tempting to forego due diligence at this stage because heightened emotions and excitement for the new idea can override objectivity.

Additionally, new opportunities often present themselves within time constraints. Niche market producers are frequently eager and passionate to enter the industry with a compelling story. Regardless, we must devote the time and resources necessary for research before committing any further resources.

Navigating New Market Trends Dr. David Kohl – Professor Emeritus, Virginia Tech

From the convergence of different events and variables, a major megatrend is emerging in agriculture today. Changing consumer trends for food, fiber and fuel along with higher awareness of social responsibility, health and natural resource management are creating new niche markets at an accelerating rate.

New venues or market opportunities require significant forethought, study, planning and collaboration.

Of course, in today’s turbulent economic times, execution and follow through in the marketplace are also critical to success. As part owner of a dairy creamery, I have first-hand experience with the evolution of new market opportunities. However, I have also observed several pitfalls to avoid when considering new market opportunities. Thus, in addition to your spirit of adventure, I will outline other items to consider before committing to a new or expanded venue.

For example, at our creamery, many people indicated old-fashioned, glass, milk bottles would never work. The inconveniences of bottle-return, increased expense and sanitation concerns were all cited as reasons not to invest in glass containers. However, while the general research was correct, we discovered there was a small percentage of the market (under 1 percent of the population) that placed a high priority on the use of glass. Favorable attributes of the glass included better-tasting, longer-lasting milk that was environmentally friendly. In addition, the deposit was recaptured upon bottle return and the creamery had on-site capacity to wash and sanitize the bottles. Fast-forwarding 15 years now, that small percentage is now 20 times larger than expected and these customers serve as passionate advocates for the creamery in the marketplace.

Take a systems approach Next in the planning process is a systems-type approach.

Many in agriculture are good at production while others excel at marketing. However, few are able to develop a system, find efficiencies and replicate sustainably. It’s important to examine all the resources. This includes land, human resources and of course, capital resources. As a safeguard, our team at the creamery uses the 25 to 50 percent rule. This rule accounts for an additional 25 to 50 percent of money and time, above original projection, to take the product or service from concept to profit.

Assess whether this new opportunity is complimentary or competitive with the existing operation and resources. For example, a traditional grain producer living in a growing urban area added on a small “U-pick” strawberry stand to increase margins. Not only was new equipment and additional labor required, strawberry planting and harvest directly interfered with the planting and harvesting of the traditional crops. While perhaps a good idea, this was not a complimentary addition to the existing operation.

New markets also come with new rules. This includes regulations, compliance guidelines, zoning and of course,

11

Northwest Farm Credit Services

food safety requirements. Frequently, there are mazes of federal, state, local and in some cases, international obstacles that can end the journey before it starts. Compliance due diligence is an extremely critical element in the planning process, but also as your marketing evolves. A glitch in food safety protocols, which seems to happen frequently, can play havoc on the most successful marketing endeavors.

The five C’s for new ventures For any new agricultural marketing opportunity, consider the “five C’s;” competition, concentration, connectivity, complacency and collaboration. Conduct a competitive analysis before investing resources. Observe what the competition does well and how it might be improved. Beware of market concentration. Is one vendor 25, 50 or even 75 percent of the existing market? Conduct various “what if” analyses on the market including complete loss of the market or doubling production to meet increased demand. Determine how these scenarios could impact short and long-term cash flows as well as overall operations.

The next “C” is connectivity. Successful businesses are often very skillful at connecting the dots from production to the market in an efficient manner. Remember, the most vulnerable and dangerous time period in any new marketing venture is directly after the initial success of your product’s market launch. At this point, there is sometimes a tendency to become complacent; which is the next “C”. In my work with sustainable industry leaders, I see 10 to 20 percent of their time spent in exploration of new products, services or variations to keep the product fresh in consumers’ minds.

The final “C” is collaboration. New markets often require collaboration between other producers, distribution channels and in some cases, even competitors. There is a place for independence in the marketplace, but collaboration and interdependency often raise the bar.

Finally, assess the potential impact of this new market opportunity on your current business operation. Does it bring a new form of positive energy or motivation for those in the business? Pulling from the creativity of the younger generation, a dairy in the mid-South decided to sell ice cream while showing movies on the side of the barn. A family of apple producers started selling retail rather than wholesale thanks to the passion brought by their son and daughter-in-law. Undoubtedly, each of these situations presented its own set of challenges and obstacles. However, each also demonstrates the power of spirit paired with planning.

fall 2015

12

outside expert

Do your homework The first step of the journey is market research. Adequate research is needed to ascertain size, scope and duration of the marketing opportunity. It may be tempting to forego due diligence at this stage because heightened emotions and excitement for the new idea can override objectivity.

Additionally, new opportunities often present themselves within time constraints. Niche market producers are frequently eager and passionate to enter the industry with a compelling story. Regardless, we must devote the time and resources necessary for research before committing any further resources.

Navigating New Market Trends Dr. David Kohl – Professor Emeritus, Virginia Tech

From the convergence of different events and variables, a major megatrend is emerging in agriculture today. Changing consumer trends for food, fiber and fuel along with higher awareness of social responsibility, health and natural resource management are creating new niche markets at an accelerating rate.

New venues or market opportunities require significant forethought, study, planning and collaboration.

Of course, in today’s turbulent economic times, execution and follow through in the marketplace are also critical to success. As part owner of a dairy creamery, I have first-hand experience with the evolution of new market opportunities. However, I have also observed several pitfalls to avoid when considering new market opportunities. Thus, in addition to your spirit of adventure, I will outline other items to consider before committing to a new or expanded venue.

For example, at our creamery, many people indicated old-fashioned, glass, milk bottles would never work. The inconveniences of bottle-return, increased expense and sanitation concerns were all cited as reasons not to invest in glass containers. However, while the general research was correct, we discovered there was a small percentage of the market (under 1 percent of the population) that placed a high priority on the use of glass. Favorable attributes of the glass included better-tasting, longer-lasting milk that was environmentally friendly. In addition, the deposit was recaptured upon bottle return and the creamery had on-site capacity to wash and sanitize the bottles. Fast-forwarding 15 years now, that small percentage is now 20 times larger than expected and these customers serve as passionate advocates for the creamery in the marketplace.

Take a systems approach Next in the planning process is a systems-type approach.

Many in agriculture are good at production while others excel at marketing. However, few are able to develop a system, find efficiencies and replicate sustainably. It’s important to examine all the resources. This includes land, human resources and of course, capital resources. As a safeguard, our team at the creamery uses the 25 to 50 percent rule. This rule accounts for an additional 25 to 50 percent of money and time, above original projection, to take the product or service from concept to profit.

Assess whether this new opportunity is complimentary or competitive with the existing operation and resources. For example, a traditional grain producer living in a growing urban area added on a small “U-pick” strawberry stand to increase margins. Not only was new equipment and additional labor required, strawberry planting and harvest directly interfered with the planting and harvesting of the traditional crops. While perhaps a good idea, this was not a complimentary addition to the existing operation.

New markets also come with new rules. This includes regulations, compliance guidelines, zoning and of course,

11

Northwest Farm Credit Services

food safety requirements. Frequently, there are mazes of federal, state, local and in some cases, international obstacles that can end the journey before it starts. Compliance due diligence is an extremely critical element in the planning process, but also as your marketing evolves. A glitch in food safety protocols, which seems to happen frequently, can play havoc on the most successful marketing endeavors.

The five C’s for new ventures For any new agricultural marketing opportunity, consider the “five C’s;” competition, concentration, connectivity, complacency and collaboration. Conduct a competitive analysis before investing resources. Observe what the competition does well and how it might be improved. Beware of market concentration. Is one vendor 25, 50 or even 75 percent of the existing market? Conduct various “what if” analyses on the market including complete loss of the market or doubling production to meet increased demand. Determine how these scenarios could impact short and long-term cash flows as well as overall operations.

The next “C” is connectivity. Successful businesses are often very skillful at connecting the dots from production to the market in an efficient manner. Remember, the most vulnerable and dangerous time period in any new marketing venture is directly after the initial success of your product’s market launch. At this point, there is sometimes a tendency to become complacent; which is the next “C”. In my work with sustainable industry leaders, I see 10 to 20 percent of their time spent in exploration of new products, services or variations to keep the product fresh in consumers’ minds.

The final “C” is collaboration. New markets often require collaboration between other producers, distribution channels and in some cases, even competitors. There is a place for independence in the marketplace, but collaboration and interdependency often raise the bar.

Finally, assess the potential impact of this new market opportunity on your current business operation. Does it bring a new form of positive energy or motivation for those in the business? Pulling from the creativity of the younger generation, a dairy in the mid-South decided to sell ice cream while showing movies on the side of the barn. A family of apple producers started selling retail rather than wholesale thanks to the passion brought by their son and daughter-in-law. Undoubtedly, each of these situations presented its own set of challenges and obstacles. However, each also demonstrates the power of spirit paired with planning.

fall 2015

12

security awareness

college scholarships

Protecting Your Email

Investing in Your Family’s Future

Your email account is the center of your online identity. Along with social media, email is a wonderful way to keep in touch with family, friends and business associates. However, if your email account is compromised, the damages can be serious. Follow these common-sense tips to avoid email problems.

Northwest FCS promotes youth education through our college scholarship program. Scholarships are awarded annually to high school seniors, current college students and those pursing graduate degrees. All scholarships are $2,000 each.

CURITY E S

ARENES

S

A

W

1. Install anti-virus / anti-spyware software.

Customer Undergraduate Scholarships

2. Share your email address with only trusted sources.

Awarded to sons and daughters of Northwest FCS customers and their employees. High school seniors and current college students will be selected based on school and community involvement, scholastic performance and educational goals.

Security software will protect you and your PC from viruses, worms, Trojans and other malicious programs.

Only your family, friends and trusted business contacts should have your personal email address. Do not post your email address on websites, forums or in chat rooms. If you do, you are vulnerable to receiving spam or having your email passed on to others. Consider creating a secondary email for uses such as newsletter or website subscriptions and to receive confirmation emails for online transactions.

3. Be cautious when receiving attachments or downloads.

Don’t accept unknown emails. Your computer can obtain a virus, worm or Trojan simply by opening email and attachments. If you choose to download files, make sure your security software is enabled and pay close attention to any warnings.

4. Watch out for phishing scams.

Northwest FCS is now providing a new secure gateway for communications regarding your account. We are working hard to keep your information confidential! Each time Northwest places a message in your Secure Messaging inbox, the system will send you an email notifying you that a message has arrived. You can then log into the secure site to access the message. When you reply to the message or create a new one, it will go directly to the Northwest FCS staff member without leaving our secure environment.

13

Northwest Farm Credit Services

Phishing attacks come in the form of fraudulent emails and fake websites which lure unsuspecting users into revealing private account or login information. To be safe, if you receive an email that includes a link to a website, make certain the website is legitimate by opening a separate browser and visiting the website directly. You can also verify that an email is legitimate by calling the business directly.

5. Use email wisely.

Be careful about what information you submit via email. Never send your credit card information, Social Security number or other confidential information via email.

Customer Graduate Scholarship Awarded to sons and daughters of Northwest FCS customers and employees. Graduate students will be selected based on their scholastic performance and post graduate career goals.

Land Grant University Scholarships

Application Deadline March 1, 2016

Awarded to full-time undergraduate students seeking a degree in agriculture, finance, business or related fields at Northwest land grant universities.

Students must demonstrate a commitment to agriculture, leadership and academic achievement.

Minority Scholarships Awarded to minority students studying agriculture, finance or business who have a passion for helping others overcome bias and recognize different beliefs and values. Recipients are involved in activities or committees that foster an environment where all have the opportunity to participate.

6. Do not reply to email from an unknown sender.

If you don’t recognize the sender, don’t respond. Even clicking “Unsubscribe” could set you up for more spam.

7. Create smart and strong passwords.

Make it difficult for hackers to crack your password. Use a sentence or phrase with ten or more letters that you can easily remember. Then transform it into a strong password by substituting the original letters with upper-case letters, numbers and special characters where appropriate. An example of a strong password comes from the phrase “Gold mine today” – Go1dM!n32d@y. Avoiding actual words in your password phrase makes it harder for the bad guys – and the software they use – to guess it.

Visit: northwestfcs.com/scholarships for eligibility, selection criteria and more information.

Winners announced May 2016 fall 2015

14

security awareness

college scholarships

Protecting Your Email

Investing in Your Family’s Future

Your email account is the center of your online identity. Along with social media, email is a wonderful way to keep in touch with family, friends and business associates. However, if your email account is compromised, the damages can be serious. Follow these common-sense tips to avoid email problems.

Northwest FCS promotes youth education through our college scholarship program. Scholarships are awarded annually to high school seniors, current college students and those pursing graduate degrees. All scholarships are $2,000 each.

CURITY E S

ARENES

S

A

W

1. Install anti-virus / anti-spyware software.

Customer Undergraduate Scholarships

2. Share your email address with only trusted sources.

Awarded to sons and daughters of Northwest FCS customers and their employees. High school seniors and current college students will be selected based on school and community involvement, scholastic performance and educational goals.

Security software will protect you and your PC from viruses, worms, Trojans and other malicious programs.

Only your family, friends and trusted business contacts should have your personal email address. Do not post your email address on websites, forums or in chat rooms. If you do, you are vulnerable to receiving spam or having your email passed on to others. Consider creating a secondary email for uses such as newsletter or website subscriptions and to receive confirmation emails for online transactions.

3. Be cautious when receiving attachments or downloads.

Don’t accept unknown emails. Your computer can obtain a virus, worm or Trojan simply by opening email and attachments. If you choose to download files, make sure your security software is enabled and pay close attention to any warnings.

4. Watch out for phishing scams.

Northwest FCS is now providing a new secure gateway for communications regarding your account. We are working hard to keep your information confidential! Each time Northwest places a message in your Secure Messaging inbox, the system will send you an email notifying you that a message has arrived. You can then log into the secure site to access the message. When you reply to the message or create a new one, it will go directly to the Northwest FCS staff member without leaving our secure environment.

13

Northwest Farm Credit Services

Phishing attacks come in the form of fraudulent emails and fake websites which lure unsuspecting users into revealing private account or login information. To be safe, if you receive an email that includes a link to a website, make certain the website is legitimate by opening a separate browser and visiting the website directly. You can also verify that an email is legitimate by calling the business directly.

5. Use email wisely.

Be careful about what information you submit via email. Never send your credit card information, Social Security number or other confidential information via email.

Customer Graduate Scholarship Awarded to sons and daughters of Northwest FCS customers and employees. Graduate students will be selected based on their scholastic performance and post graduate career goals.

Land Grant University Scholarships

Application Deadline March 1, 2016

Awarded to full-time undergraduate students seeking a degree in agriculture, finance, business or related fields at Northwest land grant universities.

Students must demonstrate a commitment to agriculture, leadership and academic achievement.

Minority Scholarships Awarded to minority students studying agriculture, finance or business who have a passion for helping others overcome bias and recognize different beliefs and values. Recipients are involved in activities or committees that foster an environment where all have the opportunity to participate.

6. Do not reply to email from an unknown sender.

If you don’t recognize the sender, don’t respond. Even clicking “Unsubscribe” could set you up for more spam.

7. Create smart and strong passwords.

Make it difficult for hackers to crack your password. Use a sentence or phrase with ten or more letters that you can easily remember. Then transform it into a strong password by substituting the original letters with upper-case letters, numbers and special characters where appropriate. An example of a strong password comes from the phrase “Gold mine today” – Go1dM!n32d@y. Avoiding actual words in your password phrase makes it harder for the bad guys – and the software they use – to guess it.

Visit: northwestfcs.com/scholarships for eligibility, selection criteria and more information.

Winners announced May 2016 fall 2015

14

BMC programs

BMC programs

Sharing Our Knowledge Northwest FCS’ Business Management Center is committed to sharing industry knowledge and management lessons to help our customers make sound business decisions. We’ve invested in educational programs, industry insights and business tools to help customers enhance their management skills and support the transfer of leadership and management to the next generation.

Featured Programs

Family Business Succession Seminar Jan. 21-23, 2016 Richland, Washington

Workshops, Seminars and Symposiums Dec. 2-3, 2015 Salem, Ore. Dec. 8-9, 2015 Kennewick, Wash.

Understanding financial statements and analysis.

Regional Family Business Succession Seminar

Practical tools and local resources to kick-start the planning process.

Executive Producers Summit: Managing Through the Cycles

Practical tools and local resources to kick-start the planning process.

Jan. 19-20, 2016 Idaho Falls, Idaho

Basic Financial Workshop

Feb. 16-17, 2016 Kennewick, Wash.

Advanced Financial Workshop

Feb. 18, 2016 Great Falls, Mont.

Lewistown, Mont.

Small Grains Symposium

Feb. 25, 2016 Idaho Falls, Idaho

Featured experts include Dr. Don Jonovic who brings more than 40 years’ experience working with family businesses in transition and Rich Thornton, former IRS Revenue Agent and 30-year tax partner for Moss Adams LLP.

Basic Financial Workshop

Dec. 17, 2015 Dillon, Mont.

Feb. 24, 2016 Twin Falls, Idaho

Strengthen Relationships and Build a Plan Financial and Legal Considerations Tax Planning and Entity Structure

Managing growth and capital, profits, cash and risk.

Regional Family Business Succession Seminar

Understanding financial statements and analysis.

Managing growth and capital, profits, cash and risk.

Explore key industry trends affecting small grains markets.

Global Dynamics: Dairy, Feedstocks and Geopolitics

Trends and geopolitics affecting dairy and feedstock producers.

Row Crops Symposium

Drivers and issues impacting the row crops industry.

Gain deep insights from nation-leading experts to learn strategies and proven processes that help families transition ownership and management from one generation to the next. Benefit from this multi-day, immersive experience and opportunity to network.

Key Takeaways

Advanced Financial Workshop

Dec. 15, 2015 Roseburg, Ore.

Overview

Feb. 10-12, 2016 Spokane, Washington Online Registration Opens Dec. 2, 2015

Overview

Gain actionable information about managing through a declining commodity price environment and how to maintain long-term profitability after the super cycle. Build strategies to manage risk, develop people and stay ahead of consumer trends at the top and bottom of industry cycles.

Featured Speakers and Key Takeaways

Megatrends in Agriculture – Dr. Dave Kohl Strategies for Success through the Cycles – Dr. James Sterns Consumer Trends Driving Commodity Markets – Dr. Nicole Widmar Port Issues Affecting Ag Business – John Vickerman Personal Financial Management for Business – Dr. Alex White Practical Leadership for Commodity-Driven Businesses – Dr. Kim Kidwell Economic Outlook and Interest Rates Forecast – Dr. Ed Seifried

Learn more and register for BMC programs at northwestfcs.com/resources Questions? Call: 866.552.9193 or Email: bmc@northwestfcs.com

15

Northwest Farm Credit Services

fall 2015

16

BMC programs

BMC programs

Sharing Our Knowledge Northwest FCS’ Business Management Center is committed to sharing industry knowledge and management lessons to help our customers make sound business decisions. We’ve invested in educational programs, industry insights and business tools to help customers enhance their management skills and support the transfer of leadership and management to the next generation.

Featured Programs

Family Business Succession Seminar Jan. 21-23, 2016 Richland, Washington

Workshops, Seminars and Symposiums Dec. 2-3, 2015 Salem, Ore. Dec. 8-9, 2015 Kennewick, Wash.

Understanding financial statements and analysis.

Regional Family Business Succession Seminar

Practical tools and local resources to kick-start the planning process.

Executive Producers Summit: Managing Through the Cycles

Practical tools and local resources to kick-start the planning process.

Jan. 19-20, 2016 Idaho Falls, Idaho

Basic Financial Workshop

Feb. 16-17, 2016 Kennewick, Wash.

Advanced Financial Workshop

Feb. 18, 2016 Great Falls, Mont.

Lewistown, Mont.

Small Grains Symposium

Feb. 25, 2016 Idaho Falls, Idaho

Featured experts include Dr. Don Jonovic who brings more than 40 years’ experience working with family businesses in transition and Rich Thornton, former IRS Revenue Agent and 30-year tax partner for Moss Adams LLP.

Basic Financial Workshop

Dec. 17, 2015 Dillon, Mont.

Feb. 24, 2016 Twin Falls, Idaho

Strengthen Relationships and Build a Plan Financial and Legal Considerations Tax Planning and Entity Structure

Managing growth and capital, profits, cash and risk.

Regional Family Business Succession Seminar

Understanding financial statements and analysis.

Managing growth and capital, profits, cash and risk.

Explore key industry trends affecting small grains markets.

Global Dynamics: Dairy, Feedstocks and Geopolitics

Trends and geopolitics affecting dairy and feedstock producers.

Row Crops Symposium

Drivers and issues impacting the row crops industry.

Gain deep insights from nation-leading experts to learn strategies and proven processes that help families transition ownership and management from one generation to the next. Benefit from this multi-day, immersive experience and opportunity to network.

Key Takeaways

Advanced Financial Workshop

Dec. 15, 2015 Roseburg, Ore.

Overview

Feb. 10-12, 2016 Spokane, Washington Online Registration Opens Dec. 2, 2015

Overview

Gain actionable information about managing through a declining commodity price environment and how to maintain long-term profitability after the super cycle. Build strategies to manage risk, develop people and stay ahead of consumer trends at the top and bottom of industry cycles.

Featured Speakers and Key Takeaways

Megatrends in Agriculture – Dr. Dave Kohl Strategies for Success through the Cycles – Dr. James Sterns Consumer Trends Driving Commodity Markets – Dr. Nicole Widmar Port Issues Affecting Ag Business – John Vickerman Personal Financial Management for Business – Dr. Alex White Practical Leadership for Commodity-Driven Businesses – Dr. Kim Kidwell Economic Outlook and Interest Rates Forecast – Dr. Ed Seifried

Learn more and register for BMC programs at northwestfcs.com/resources Questions? Call: 866.552.9193 or Email: bmc@northwestfcs.com

15

Northwest Farm Credit Services

fall 2015

16

local advisors IDAHO Robert Ball Jeff Bartschi Cody Bingham Jeff Blanksma, Jr. Adrian Boer Ray Carlson Connie Christensen Craig Corbett Cade Crapo Ron Elkin Carl Ellsworth Bruce Foster David Funk LeRoy Funk Brent Griffin Jackie Hillman Brian Huettig Joshua Jones Brent Lott Karen Lustig Marty Lux Ray Matsuura Kyle Meyer Ron Mio Greg Moss Lisa Patterson Greg Payne Erick Peterson Royce Schwenkfelder Kirt Schwieder Scott Searle Todd Simmons Robert Swainston Ryan Telford Bernie Teunissen Dale Thomas Camellia Thurgood Justin Tindall Ritchey Toevs Steven Toone James Udy Todd Webb Shane Webster Pete Wittman Matt Wolff

Hamer Montpelier Jerome Hammett Jerome Blackfoot Blackfoot Grace St. Anthony Buhl Leadore Aberdeen Hansen Burley Rupert Hamer Hazelton Troy Idaho Falls Cottonwood Nezperce Blackfoot Rathdrum Fruitland Ketchum Heyburn Caldwell Moscow Cambridge Idaho Falls Shelley Terreton Preston Richfield Caldwell Gooding Nampa Bruneau Aberdeen Grace American Falls Declo Rexburg Lapwai Boise

73 Fort Hall Avenue, Suite A American Falls, Idaho 83211 (208) 226-1340

RateWise rewards young, beginning and small producers for continuing their management education with interest rate reductions on new loans.

Rate reductions increase with the number of credits earned. Accumulate RateWise credits beginning on the date of your program registration.

Learn more and register online at northwestfcs.com/RateWise

370 North Meridian Street, Suite A Blackfoot, Idaho�83221 (208) 782-3800 1408 Pomerelle Avenue, Suite B Burley, Idaho�83318 (208) 678-6650

MONTANA

OREGON

Les Arthun David Bell Bill Bergin Mark Bergstrom Adam Billmayer Bart Bitz Ryan Bogar Jonathan Bolstad Keven Bradley Sandy Carey Calvin Danreuther Nels DeBruycker Vicki Eggebrecht Warren Flynn Conni French Joe Fretheim Scott Glasscock Beth Granger Greg Grove Chad Hansen Craig Henke Courtney Herzog Dale Hirsch Alan Klempel Steve Lackman Tim Lake Bryan Mussard Corie Mydland Ken Olson Jon Owen Miles Passmore Tracey Pearce Robert Peterson Trudi Peterson Shawn Rettig Dave Sattoriva Nancy Schlepp Carmie Steffes Steve Swank Kurt Swanson Duane Talcott Dale Tarum Bob Taylor Kelly Toavs Mark Tombre Miles Torske Brian Tutvedt Larry Tveit, Jr. Bruce Udelhoven Mike Wallewein Steve Wood

Monet Allen Reed Anderson Roben Arnoldus Glenn Barrett Alex Blosser John Boyer Greg Brink Ron Brown George Bussmann Warren Chamberlain Jason Chapman Tim Dahle Dan Dawson Paul Denfeld Karl Dettwyler Mike DeWall Rod Fessler Tom Fessler Joe Finegan Bruce Ford Javier Goirigolzarri Dennis Harmon Matt Insko Kenneth Jensen Kyle Kenagy Alan Keudell Diane Kunkel Leland Lage Sharon Livingston Bill Martin Scott McClaran Ron Meyer Eric Mockridge Greg Myers David Neal Larry Parker Amy Doerfler Phelan John Reerslev Stephen Roth Shannon Rust Marc Staunton Anna Sullivan Steve Walker Eric White

Wilsall Great Falls Melstone Brady Hogeland Big Sandy Vida Homestead Cut Bank Boulder Loma Choteau Malta Townsend Malta Shelby Angela Great Falls Moccasin Dillon Chester Rapelje Kinsey Bloomfield Forsyth Polson Dillon Joliet Richey Geraldine Somers Sheridan Hobson Judith Gap Rudyard Hingham Ringling Plevna Chinook Valier Hammond Richland Denton Wolf Point Savage Hardin Kalispell Fairview Winifred Conrad Sheridan

Tech Plaza, Building 1, Suite 300 3490 Gabel Road Billings, Montana�59102 (406) 651-1670

501 King Street Cottonwood, Idaho�83522 (208) 962-2280

1001 West Oak Street Farm Credit Building, Suite 200 Bozeman, Montana�59715 (406) 556-7300

1215 Pier View Dr. Idaho Falls, Idaho�83402 (208) 552-2300

519 South Main Street Conrad, Montana�59425 (406) 278-4600

2631 Nez Perce Drive, Suite 201 Lewiston, Idaho�83501 (208) 799-4800

134 East Reeder Street Dillon, Montana�59725 (406) 683-1200

16034 Equine Drive Nampa, Idaho�83687 (208) 468-1600

54147 US Hwy 2, Suite A Glasgow, Montana�59230 (406) 228-3900

102 North State St., Suite 2 Preston, Idaho�83263 (208) 852-2145

700 River Drive South Great Falls, Montana�59405 (406) 268-2200

1036 Erikson Drive Rexburg, Idaho�83440 (208) 656-2100

1705 US Highway 2 Northwest, Suite A Havre, Montana�59501 (406) 265-7878

815 North College Road Twin Falls, Idaho�83301 (208) 732-1000

120 Wunderlin Street, Suite 6 Lewistown, Montana�59457 (406) 538-7737 502 South Haynes Avenue Miles City, Montana�59301 (406) 233-3100

17

Northwest Farm Credit Services

WASHINGTON Montague, CA Brownsville Cove Bonanza Dundee Haines Joseph Milton-Freewater Sixes Vale Klamath Falls The Dalles Roseburg Hillsboro Silverton Harrisburg Madras Mt. Angel Cornelius Hermiston Roseburg Grants Pass LaGrande Vale Roseburg Aumsville Portland Hood River Mt. Vernon Rufus Joseph Talent Bonanza Tillamook Tangent Helix Aumsville Junction City Brothers Echo Merrill Hereford Stanfield Nyssa

3370 10th Street, Suite B Baker City, Oregon�97814 (541) 524-2920 2345 Northwest Amberbrook Drive, Suite 100 Beaverton, Oregon�97006 (503) 844-7920 650 East Pine Street, Suite 106A Central Point, Oregon�97502 (541) 665-6100 2911 Tennyson Avenue, Suite 301 Eugene, Oregon 97408 (541) 685-6140 300 Klamath Avenue, Suite 200 Klamath Falls, Oregon�97601 (541) 850-7500 308 Southeast 10th Street Ontario, Oregon�97914 (541) 823-2660 12 Southwest Nye Avenue Pendleton, Oregon 97801 (541) 278-3300 3113 South Highway 97, Suite 100 Redmond, Oregon�97756 (541) 504-3500 2222 Northwest Kline Street Roseburg, Oregon�97471 (541) 464-6700 650 Hawthorne Ave. S.E., Suite 210 Salem, Oregon�97301 (503) 373-3000 3591 Klindt Drive, Suite 110 The Dalles, Oregon�97058 (541) 298-3400

Dave Allan Loren Beale Jeff Bosma Russ Byerley Roger Canfield Bill Clark Mike Cobb Bill denHoed Richard DeRuwe Frank DeVries Scott Eschbach Patrick Escure Kevin Filbrun Steve Fish Stacy Gilmore Alan Groff Lori Hayles Ian Jefferds Cris Kincaid Jim Klaustermeyer, Jr. Tristan Klesick Steve Krupke David Lange Josh Lawrence Poppie Mantone Dan McKay John Miller Pat Murphy Jerry Nelson Brian O’Leary Eric Olson Sara Rolfs Jason Salvo Derek Schafer Jeff Schilter Danielle Scrupps Ben Smith Jerry Smith Jim Stone Lori Stonecipher Mark Tudor Jake Wardenaar Andy Werkhoven

Wapato Pomeroy Outlook Touchet Olympia Chelan Ephrata Grandview Dayton Lynden Yakima Quincy Pasco Sitka, AK Pasco Wenatchee Pasco Coupeville Pullman Othello Stanwood Reardan Colfax Royal City Bingen Almira Toledo Chehalis Burlington Kodiak, AK Anchorage, AK Wenatchee Seattle Ritzville Olympia Ritzville Sequim Benton City Lakewood Walla Walla Grandview Royal City Monroe

265 East George Hopper Road Burlington, Washington�98233 (360) 707-2353 629 South Market Boulevard Chehalis, Washington�98532 (360) 767-1100 224 North Main Street Colfax, Washington�99111 (509) 397-2840 1501 East Yonezawa Boulevard Moses Lake, Washington�98837 (509) 764-2700 9530 Bedford Street Pasco, Washington�99301 (509) 542-3720 2157 North Northlake Way, Suite 120 Seattle, Washington 98103 (206) 691-2000 1515 South Technology Boulevard, Suite B Spokane, Washington�99224 (509) 340-5600 2735 Allen Road Sunnyside, Washington 98944 (509) 836-3080 1 West Pine Street Walla Walla, Washington�99362 (509) 525-2400 667 Grant Road, Suite 1 East Wenatchee, Washington�98802 (509) 665-2160 1360 North 16th Avenue Yakima, Washington�98902 (509) 225-3200

3021 Palmer Street, Suite B Missoula, Montana�59808 (406) 532-4900

HEADQUARTERS

123 North Central Avenue Sidney, Montana�59270 (406) 433-3920

P.O. Box 2515, 1700 S. Assembly St. Spokane, Washington 99220-2515 509.340.5300 | northwestfcs.com

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local advisors IDAHO Robert Ball Jeff Bartschi Cody Bingham Jeff Blanksma, Jr. Adrian Boer Ray Carlson Connie Christensen Craig Corbett Cade Crapo Ron Elkin Carl Ellsworth Bruce Foster David Funk LeRoy Funk Brent Griffin Jackie Hillman Brian Huettig Joshua Jones Brent Lott Karen Lustig Marty Lux Ray Matsuura Kyle Meyer Ron Mio Greg Moss Lisa Patterson Greg Payne Erick Peterson Royce Schwenkfelder Kirt Schwieder Scott Searle Todd Simmons Robert Swainston Ryan Telford Bernie Teunissen Dale Thomas Camellia Thurgood Justin Tindall Ritchey Toevs Steven Toone James Udy Todd Webb Shane Webster Pete Wittman Matt Wolff

Hamer Montpelier Jerome Hammett Jerome Blackfoot Blackfoot Grace St. Anthony Buhl Leadore Aberdeen Hansen Burley Rupert Hamer Hazelton Troy Idaho Falls Cottonwood Nezperce Blackfoot Rathdrum Fruitland Ketchum Heyburn Caldwell Moscow Cambridge Idaho Falls Shelley Terreton Preston Richfield Caldwell Gooding Nampa Bruneau Aberdeen Grace American Falls Declo Rexburg Lapwai Boise

73 Fort Hall Avenue, Suite A American Falls, Idaho 83211 (208) 226-1340

RateWise rewards young, beginning and small producers for continuing their management education with interest rate reductions on new loans.

Rate reductions increase with the number of credits earned. Accumulate RateWise credits beginning on the date of your program registration.

Learn more and register online at northwestfcs.com/RateWise

370 North Meridian Street, Suite A Blackfoot, Idaho�83221 (208) 782-3800 1408 Pomerelle Avenue, Suite B Burley, Idaho�83318 (208) 678-6650

MONTANA

OREGON

Les Arthun David Bell Bill Bergin Mark Bergstrom Adam Billmayer Bart Bitz Ryan Bogar Jonathan Bolstad Keven Bradley Sandy Carey Calvin Danreuther Nels DeBruycker Vicki Eggebrecht Warren Flynn Conni French Joe Fretheim Scott Glasscock Beth Granger Greg Grove Chad Hansen Craig Henke Courtney Herzog Dale Hirsch Alan Klempel Steve Lackman Tim Lake Bryan Mussard Corie Mydland Ken Olson Jon Owen Miles Passmore Tracey Pearce Robert Peterson Trudi Peterson Shawn Rettig Dave Sattoriva Nancy Schlepp Carmie Steffes Steve Swank Kurt Swanson Duane Talcott Dale Tarum Bob Taylor Kelly Toavs Mark Tombre Miles Torske Brian Tutvedt Larry Tveit, Jr. Bruce Udelhoven Mike Wallewein Steve Wood

Monet Allen Reed Anderson Roben Arnoldus Glenn Barrett Alex Blosser John Boyer Greg Brink Ron Brown George Bussmann Warren Chamberlain Jason Chapman Tim Dahle Dan Dawson Paul Denfeld Karl Dettwyler Mike DeWall Rod Fessler Tom Fessler Joe Finegan Bruce Ford Javier Goirigolzarri Dennis Harmon Matt Insko Kenneth Jensen Kyle Kenagy Alan Keudell Diane Kunkel Leland Lage Sharon Livingston Bill Martin Scott McClaran Ron Meyer Eric Mockridge Greg Myers David Neal Larry Parker Amy Doerfler Phelan John Reerslev Stephen Roth Shannon Rust Marc Staunton Anna Sullivan Steve Walker Eric White

Wilsall Great Falls Melstone Brady Hogeland Big Sandy Vida Homestead Cut Bank Boulder Loma Choteau Malta Townsend Malta Shelby Angela Great Falls Moccasin Dillon Chester Rapelje Kinsey Bloomfield Forsyth Polson Dillon Joliet Richey Geraldine Somers Sheridan Hobson Judith Gap Rudyard Hingham Ringling Plevna Chinook Valier Hammond Richland Denton Wolf Point Savage Hardin Kalispell Fairview Winifred Conrad Sheridan

Tech Plaza, Building 1, Suite 300 3490 Gabel Road Billings, Montana�59102 (406) 651-1670

501 King Street Cottonwood, Idaho�83522 (208) 962-2280

1001 West Oak Street Farm Credit Building, Suite 200 Bozeman, Montana�59715 (406) 556-7300

1215 Pier View Dr. Idaho Falls, Idaho�83402 (208) 552-2300

519 South Main Street Conrad, Montana�59425 (406) 278-4600

2631 Nez Perce Drive, Suite 201 Lewiston, Idaho�83501 (208) 799-4800

134 East Reeder Street Dillon, Montana�59725 (406) 683-1200

16034 Equine Drive Nampa, Idaho�83687 (208) 468-1600

54147 US Hwy 2, Suite A Glasgow, Montana�59230 (406) 228-3900

102 North State St., Suite 2 Preston, Idaho�83263 (208) 852-2145

700 River Drive South Great Falls, Montana�59405 (406) 268-2200

1036 Erikson Drive Rexburg, Idaho�83440 (208) 656-2100

1705 US Highway 2 Northwest, Suite A Havre, Montana�59501 (406) 265-7878

815 North College Road Twin Falls, Idaho�83301 (208) 732-1000

120 Wunderlin Street, Suite 6 Lewistown, Montana�59457 (406) 538-7737 502 South Haynes Avenue Miles City, Montana�59301 (406) 233-3100

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Northwest Farm Credit Services

WASHINGTON Montague, CA Brownsville Cove Bonanza Dundee Haines Joseph Milton-Freewater Sixes Vale Klamath Falls The Dalles Roseburg Hillsboro Silverton Harrisburg Madras Mt. Angel Cornelius Hermiston Roseburg Grants Pass LaGrande Vale Roseburg Aumsville Portland Hood River Mt. Vernon Rufus Joseph Talent Bonanza Tillamook Tangent Helix Aumsville Junction City Brothers Echo Merrill Hereford Stanfield Nyssa

3370 10th Street, Suite B Baker City, Oregon�97814 (541) 524-2920 2345 Northwest Amberbrook Drive, Suite 100 Beaverton, Oregon�97006 (503) 844-7920 650 East Pine Street, Suite 106A Central Point, Oregon�97502 (541) 665-6100 2911 Tennyson Avenue, Suite 301 Eugene, Oregon 97408 (541) 685-6140 300 Klamath Avenue, Suite 200 Klamath Falls, Oregon�97601 (541) 850-7500 308 Southeast 10th Street Ontario, Oregon�97914 (541) 823-2660 12 Southwest Nye Avenue Pendleton, Oregon 97801 (541) 278-3300 3113 South Highway 97, Suite 100 Redmond, Oregon�97756 (541) 504-3500 2222 Northwest Kline Street Roseburg, Oregon�97471 (541) 464-6700 650 Hawthorne Ave. S.E., Suite 210 Salem, Oregon�97301 (503) 373-3000 3591 Klindt Drive, Suite 110 The Dalles, Oregon�97058 (541) 298-3400

Dave Allan Loren Beale Jeff Bosma Russ Byerley Roger Canfield Bill Clark Mike Cobb Bill denHoed Richard DeRuwe Frank DeVries Scott Eschbach Patrick Escure Kevin Filbrun Steve Fish Stacy Gilmore Alan Groff Lori Hayles Ian Jefferds Cris Kincaid Jim Klaustermeyer, Jr. Tristan Klesick Steve Krupke David Lange Josh Lawrence Poppie Mantone Dan McKay John Miller Pat Murphy Jerry Nelson Brian O’Leary Eric Olson Sara Rolfs Jason Salvo Derek Schafer Jeff Schilter Danielle Scrupps Ben Smith Jerry Smith Jim Stone Lori Stonecipher Mark Tudor Jake Wardenaar Andy Werkhoven

Wapato Pomeroy Outlook Touchet Olympia Chelan Ephrata Grandview Dayton Lynden Yakima Quincy Pasco Sitka, AK Pasco Wenatchee Pasco Coupeville Pullman Othello Stanwood Reardan Colfax Royal City Bingen Almira Toledo Chehalis Burlington Kodiak, AK Anchorage, AK Wenatchee Seattle Ritzville Olympia Ritzville Sequim Benton City Lakewood Walla Walla Grandview Royal City Monroe

265 East George Hopper Road Burlington, Washington�98233 (360) 707-2353 629 South Market Boulevard Chehalis, Washington�98532 (360) 767-1100 224 North Main Street Colfax, Washington�99111 (509) 397-2840 1501 East Yonezawa Boulevard Moses Lake, Washington�98837 (509) 764-2700 9530 Bedford Street Pasco, Washington�99301 (509) 542-3720 2157 North Northlake Way, Suite 120 Seattle, Washington 98103 (206) 691-2000 1515 South Technology Boulevard, Suite B Spokane, Washington�99224 (509) 340-5600 2735 Allen Road Sunnyside, Washington 98944 (509) 836-3080 1 West Pine Street Walla Walla, Washington�99362 (509) 525-2400 667 Grant Road, Suite 1 East Wenatchee, Washington�98802 (509) 665-2160 1360 North 16th Avenue Yakima, Washington�98902 (509) 225-3200

3021 Palmer Street, Suite B Missoula, Montana�59808 (406) 532-4900

HEADQUARTERS

123 North Central Avenue Sidney, Montana�59270 (406) 433-3920

P.O. Box 2515, 1700 S. Assembly St. Spokane, Washington 99220-2515 509.340.5300 | northwestfcs.com

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18

fall 2015 PO Box 2515 Spokane, Washington 99220-2515

This institution is an equal opportunity provider and employer. *Serviced through Northwest Farm Credit Services Insurance Agency.

New address?

Please notify your local Northwest FCS branch.

Your trusted source.

We support agriculture and rural communities with reliable, consistent credit and financial services, today and tomorrow.

Gordon, Glenn and Gayle Goschie

Business is Hoppin’

· Real Estate Financing · Operating Lines of Credit · Country Home & Lot Loans · Crop Insurance*

800.743.2125 northwestfcs.com

Nestled in Oregon’s lush Willamette Valley, Goschie Farms has been growing hops for 111 years.

Here to Help You Grow