yields
Fall 2013
Who we are: Northwest Farm Credit Services is a customer-owned, financial services cooperative, providing $11 billion in credit, crop insurance, and related services to farmers, ranchers, agribusinesses, commercial fishermen, forest products producers, equipment dealers, chemical suppliers, part-time farmers, and country homeowners.
Board of Directors Karen Schott, Chair, Broadview, MT Dave Hedlin, Vice Chair, Mount Vernon, WA Rick Barnes, Callahan, CA Christy Burmeister-Smith, Newman Lake, WA Drew Eggers, Meridian, ID Jim Farmer, Nyssa, OR Mark Gehring, Salem, OR John Helle, Dillon, MT
FEATURE STORY > 5 Ryan Lankford joined the Army Reserve as a high school senior and spent eight years in the military before returning to farm with his dad Jerry on the Ft. Belknap Reservation. Ryan is using his military experience and college education to farm some 10,000 acres with the support of Northwest FCS.
Herb Karst, Billings, MT Bruce Nelson, Spokane, WA Dave Nisbet, Bay Center, WA Kevin Riel, Yakima, WA Julie Shiflett, Spokane, WA Shawn Walters, Newdale, ID
About Yields Yields is produced for stockholders of Northwest FCS, an Agricultural Credit Association. Comments and story ideas can be sent to the Marketing Department, c/o Northwest FCS, P.O. Box 2515, Spokane, WA 99220-2515. website: northwestfcs.com
Farmer Veteran Coalition > 9 New RateWise program for young, beginning producers > 11 Protect your security > 12
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.
Serving those who served Phil DiPofi, President and CEO
All of us in agriculture share a responsibility to launch the next generation of promising young producers. Many grew up in agriculture as the sons and daughters of Northwest FCS customers. Others are entering agriculture for the first time. Helping these young, beginning producers start their own businesses is an integral part of the cooperative mission at Northwest FCS. Returning service members from Iraq and Afghanistan have become the latest group of veterans in need of employment and who, by some measures, may be the most likely young people to enter into agriculture and other rural-based businesses. It is estimated that 45 percent of veterans leaving military service come from, and will return to, rural America. This year we are reaching out to help active-duty service members and Gulf-War Era II veterans get started in agriculture through our nationally-recognized AgVision program. The AgVision program is designed to help young, beginning and small producers who may not meet our regular underwriting standards. We offer educational opportunities to help the next generation improve and refine their financial and management skills. I am continually inspired by stories from customers and employees who are reaching out to support our returning service members. Established producers, many who served in the military themselves, are mentoring young veterans who are interested in agriculture. Northwest FCS employees are answering the call by donating their time, talents and financial resources to support a number of veteran projects. Our military veterans embody the values that stand at the heart of rural America: hard work, a love for country and a sense of duty to give back. For these returning veterans, agriculture provides a tremendous opportunity to continue serving our country – ensuring that our food supply is abundant and secure, our natural resources are protected and U.S. agriculture continues to lead the world. Please join me in thanking all our military veterans for their service.
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Family Business Succession Planning Seminar Jan. 30 – Feb. 1, 2014
Coeur d’Alene, Idaho
Overview The Family Business Succession Seminar is an interactive program featuring two of the nation’s top family business experts. The strategies and proven processes covered in the seminar help families transition ownership and management from one generation to the next. Northwest FCS recommends this seminar for all family members impacted by management succession and asset transfer to ensure all are informed and prepared for the process.
Subjects Covered and Key Takeaways • Business and Family – Learn to recognize and balance individual, family and business needs • Financial Implications – Understand the financial requirements and potential pitfalls surrounding succession • Business Assessment – Identify your family business strengths, challenges and philosophies • Communication – Review best practices in family communications • Legal Issues – Learn the legal considerations and best practices for succession and estate plans • Buy/Sell Agreements – Identify options for funding and structuring buy/sell agreements • Road Map for Success – Develop practical next steps in building succession plans
Executive Producers Summit: Strategic Planning for Peak Performance February 5-7, 2014
Spokane, Washington
Overview The Executive Producers Summit provides insights and perspectives on managing business in a dynamic, peeroriented environment. Participants’ interests and questions drive the Summit’s roundtable discussions and actionable takeaway lessons from nationally recognized speakers and BMC facilitators. This year’s Summit will feature:
Strategic Planning Success in today’s volatile and highly competitive agricultural markets takes more than operational excellence. Long-term success in business requires a clearly defined plan that aligns owners and employees with a shared vision for the future. The strategic planning process does not need to be complex, but it should be comprehensive to make the most of your human, financial and natural resources. Through hands-on learning and application, you will leave the Summit with tools, knowledge and processes to complete a strategic plan in your business.
Subjects Covered and Key Takeaways • Exclusive Speakers – Learn from national-level speakers on topics affecting agriculture today • Strategic Planning – Learn how to build a strategic plan for your business • Agriculture Trends – Stay ahead of the curve with insights from Dr. Dave Kohl • Economic Trends – Gain insight on economic trends and forecasts from Dr. Ed Seifried • Peer Applications – Identify management challenges and share real-world solutions in roundtable discussions
3 | Nor thwest Farm Credit Ser vices
Armed to Farm Veteran returns to the field
Ryan Lankford is a smart young man with big plans. He joined the Army Reserve as a high school senior and spent eight years in the military, two years active duty, to pay for his college education. He earned his engineering degree from Montana State University. Coming back to farm with his dad wasn’t necessarily the plan. But farming is in Ryan’s blood. He’s an enrolled member of the Gros Ventre Tribe, believed to have lived in the Great Lakes region cultivating maize 3,000 years ago. Today Ryan is using his military experience, college education, and wise advice from mentors to farm some 10,000 acres and expanding, with the proud support of Northwest FCS.
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Ryan is a second generation farmer. In 1978 his dad Jerry
of technology. Jerry started no-till farming with one of
and Uncle Tom broke more than 10,000 acres of virgin
the first air seeders in 1996. He says it revolutionized
ground on the Ft. Belknap Reservation. Ryan’s mom
the operation. Today, Ryan is working to synchronize all
Bonnie worked off the farm to support the family. Those
their equipment to use one GPS platform. That’s where
were lean, tough years. The Indian Financing Act with
his military training comes in. Every machine and every
federal guaranties and loan insurance for Indian-owned
system should be uniform. If there’s a problem, he can
businesses had just passed in 1974. But still no banks in
easily talk someone through it by radio.
Malta, Mont. would loan money to farm on the reservation. Undaunted, the Lankfords planted their first crop with
Managing people
back-breaking labor and start-up money borrowed from
In the military, Ryan volunteered for every school of
a friend, “Jiggs” Kirkaldie. A two-year drought wiped them
training available. He was quickly promoted to E6 Staff
out in 1987.
Sergeant, the youngest in his battalion, before being recruited as an instructor. Ryan trained soldiers to build military occupational skills – handling ammunitions, demolitions, rifles and urban combat. “The military taught me how to manage people,” says Ryan. “I learned how to instruct a team. It seems I’m always training someone on the farm. I learned how decisions are made with different rank structures. When you’re talking to someone in the field he’s probably not the person making the final decision. It’s the guy behind the desk. You need to communicate effectively with both. There’s a lot of money on the line when you’re farming and you don’t want someone on the back end holding you up. You have to know how to please the private and get the general to say yes.”
Jerry and Bonnie Lankford are first generation farmers on the reservation
In his military unit, Ryan served with men twice his age.
“I wouldn’t be here without my dad’s story,” says Ryan.
He learned how to compensate for his youth by “knowing
“When I was six years old we went bankrupt. My parents
the facts and talking over people sometimes” when he
had to sell everything, including the house. But, my dad
needed to. But the alpha male role doesn’t really have
had the foresight to seed a crop before the sale so we had
a place on the farm, he says. Everyone needs to work
something to borrow against. A friend bought dad’s tractor
together. Equipment will break. People will make mistakes.
and gave it back to him. Our babysitter sold mom a truck
And getting angry doesn’t help. It only makes you more
for a sewing machine and $300. They started over again.
vulnerable to mistakes.
And look how far they’ve come. I wouldn’t be farming today if it wasn’t for my dad. He did what he had to do to
Documentation and follow through
make it here. I get to do what I want to do.”
Ryan credits college for teaching him the importance of documentation. He journals constantly, writing down
Early adaptors
everything he does. Every critical conversation. Every
The Lankfords have nearly doubled their acreage in six
situation and observation. Daily. Ryan has a paper trail
years since Ryan and wife Lyndsey returned to raise their
for everything. The discipline has saved the Lankfords
family on the farm. Like his dad, Ryan is an early adaptor
thousands of dollars.
5 | Nor thwest Farm Credit Ser vices
Northwest FCS Relationship Manager Colter Brown (left) and Ryan inspect damage from the recent hail storm
“We lost 3,000 acres in a hailstorm this year,” says Ryan.
“In 2008, my first year farming, hail took out more than
“Plus, we had a neighbor accidentally spray 200 acres,
half my acres,” explains Ryan. “That’s why I’m so keyed in
which confused the situation with a non-insurable loss.
on cost per acre and managing risk. We don’t have the
Last year we had a preventative plant claim and lost
luxury of being fourth generation guys with our land paid
300 acres to winter kill. Out of the blue, I got a letter
off. We have so many leases it can bury you in paperwork.
questioning our insurance coverage. I went back to my
With an operation our size it’s easy to drop a million dollars
journals. Whenever I talk to someone I always follow up
into machinery. It sounds like a lot of money. And it is a
with a memo to them, documenting our conversation.
lot of money. But if we can make the numbers work over
There was no argument. Our insurance agent went to bat
10,000 acres for half the cost of hiring custom work, the
for us and everything was resolved quickly.”
investment makes sense.”
Ryan’s dad still loves to tease him about the day a representative from the Montana Department of Ag came out to verify the spray damage. Ryan wasn’t there. But, he’d given all the paperwork to Jerry. “The woman started going through all of Ryan’s files,” he says. “She kept saying over and over again, ‘I’ve never seen anything like this!’ Then she asked me, ‘Is your son married?’”
Managing risk When it comes to the numbers, Ryan knows every cost to the acre. All 10,000 acres. He meticulously calculates his breakeven point and looks for return on investment. The Lankfords use plenty of crop insurance to protect against weather risk or a drop in market prices.
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beginning mistakes we did in
Using wise mentors Ryan grew up watching his dad mentor young men who came looking for work on the farm. Many lived on the reservation and had little to no field experience. But there was always rocks to pick or fences to put up. Jerry has a master’s degree in guidance counseling from the University of Montana. Over the years he’s made it a personal mission to train men for hard work and responsibility. Ryan says they’ve probably had more than 100 people work for them over the years. Some for a day. Some for a year or more. Jerry talks proudly about the young people who
those early years of farming. He’s going to be so much further ahead than we were at his age. In today’s environment you have to work hard and smart. More established operations can get by with a little more risk than these young people just starting out. Ryan gets it. To work smart you need a network of advisors, including a lender who has confidence in you and your operation.”
Securing financial support
went on to join the military,
Financing land on the reservation can be challenging,
attend school or start
particularly from a collateral standpoint. A person can have
promising careers in
a deed for the land but the property remains in trust status
the trades.
with the Bureau of Indian Affairs. That’s why the Lankfords have leased almost all their ground. They are blessed as
Maybe that’s why Ryan stresses how important mentors
enrolled members with a supportive Tribal Council, and
are to the next generation in agriculture. “Find four or five
they have first-right-of-refusal on the leases they pick up.
producers you can rely on for straight-forward answers,” he says. “They’re out there. You just have to find them. I’ve been blessed by my dad and a group of guys, like Brian Eggebrecht, who are willing to share what they’ve done – what worked and what didn’t – whether it’s buying a piece of equipment or crop insurance. I’ve asked all those questions. I figure nothing is really new. Somebody has tried it. You just can’t be afraid to ask and be willing to listen. Not know it all.” Brian Eggebrecht is a well-respected, seasoned producer that Ryan goes to for advice. Initially, Ryan had questions about raising alternative crops like peas and lentils, something the Eggebrechts have done in north central Montana for 15 years. The two have talked about managing risk with crop insurance and appropriate levels for coverage. “When you try something new it’s always a learning experience,” says Brian. “Ryan doesn’t have to make the same
7 | Nor thwest Farm Credit Ser vices
But in 2012, Ryan had his eye on a piece of private property to buy – about 3,000 acres he knew would be coming out of CRP soon. With the purchase he could expand his land base and grain storage. Could he find the financing to do it? Originally, Ryan was going to do a contract-for-deed to buy the land, but the deal fell through. While he was working to get the down payment, the price went up. Ryan had some big decisions to make. Ryan and wife Lyndsey review the numbers
Farming career for military veterans
Northwest FCS 2013 Veteran Support Activities
It is estimated that 45 percent of veterans leaving military service come from, and will return to, rural America.
Jan.
Featured a young, military veteran farming couple in a video shown at Northwest FCS’ Annual Meeting to announce reaching out to veterans with our AgVision program.
Feb.
Represented Northwest FCS on a panel for veterans coming back into agriculture at the national Farm Credit Council annual meeting.
Mar.
Northwest FCS employees in Spokane donated 800 pounds of items and nearly $3,000 for Give2theTroops. Northwest FCS donated $1,000.
Among these returning veterans are the next generation of farmers and agribusiness leaders. Northwest Farm Credit Services’ AgVision program Ryan and Colter discuss the land purchased with financing from Northwest FCS’ AgVision program
“I went from being comfortable
is helping young military veterans, like Ryan, realize their futures in agriculture.
to … just being close enough to uncomfortable,” Ryan says. That’s why
“When people get out of the service
I appreciate the people at Northwest
they’re looking for different careers,”
Farm Credit. They give you the
says Ryan. “Sometimes it’s tough to
opportunity to grow, but they don’t
transfer your military skills into the
want you to get in too deep. I had a
civilian world. You can have all the
dollar range in mind for the down
hopes and aspirations in the world but
payment. They showed me how much
if you don’t have access to money it
to put down so I wouldn’t stretch
will be tough. My dad was just amazed
myself too thin. It was nice to have
when I got my loan at Northwest Farm
that guidance. I knew what I wanted
Credit. It’s pretty awesome to have
and they knew what I needed to help
that kind of support to get started and
me manage the risk.”
be successful.”
April Featured a veteran-focused advertisement in the Guardian, the Idaho National Guard magazine.
The next generation of agriculture: Ryan and Lyndsey with daughters Kendle and Caitlyn and a son on the way in January.
May
Contributed to University of Idaho Operation Education, the nation’s leading scholarship and assistance program for military veterans with disabilities.
June
Contributed to the Wounded Warriors project via a local veteran support organization in Burlington, Wash.
July
Donated $5,000 to Operation Spokane Heroes that helps families of deployed service personnel from the National Guard, Reserves and Active Duty.
July
Partnered with CoBank to support three ag-related service/leadership fellowships for veterans in The Mission Continues program.
Sept. Northwest FCS’ Human Resources staff attended Hiring Our Heroes Career Fair in Spokane. Sept. During United Way week in Spokane, Northwest FCS hosted Shepherds for Lost Sheep that provides service dogs for veterans. Sept. Northwest FCS’ AgVision group sponsored a team to participate in Seattle’s “Tough Mudder” race. T-shirts were created saying “AgVision – serving those who served.”
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Farmer Veteran Coalition Northwest FCS is proud to partner with the Farmer Veteran Coalition, an organization aimed at mobilizing veterans to enter agriculture. Our vision is to help find farm ownership or ag employment opportunities for members of the military transitioning into the civilian workforce. We encourage your support. “When I began farming in 1970, two million farmers were feeding 200 million people.
Michael O’Gorman, Farmer Veteran Coalition Founder
Now 960,000 farmers are feeding 310 million mouths. For a century our numbers have shrunk and our age has gone up. Our nation needs new farmers to feed our people, protect our land, rebuild our economy, bring back our rural communities, keep us healthy, and make our nation secure. Who better to heed that call than our veterans? “Veterans make excellent farmers. They are not afraid of difficult tasks, they stand up when they are knocked down, they understand the need to be acutely aware of everything around them, and most of all, they are driven by doing what is right for their country. “Support for healthy eating, diversity in our diet and food that travels fewer miles from the field to the plate has made farming on smaller acreage a viable option. It has also allowed for the return of high value crops to communities that have long abandoned them. “Not all agriculture means self-employment. Our largest farms offer a wide range of well-paying jobs. My own profession, farm management, gave me the satisfaction of farming on a scale that I never could have achieved on my own. I was able to focus on the part of the job that I
Ways to show your support: • Employ young veterans • Become a mentor to a young veteran farmer • Spread the word about veterans in agriculture
loved - being out in the field growing the crop – while my
• Donate equipment, seeds, feed or stock
colleagues handled the sales and business.
• Offer discounts to Farmer Veterans • Share educational resources
“Farming, like the military, is one of our last great meritocracies: one is judged based on actions, not words. We at the Farmer Veteran Coalition believe in the opportunities that American agriculture has to offer. We each have the opportunity and ability to produce good food and to create a positive influence on our society.”
9 | Nor thwest Farm Credit Ser vices
• Donate to the FVC Fellowship Fund to help veterans beginning a career in food and farming and current Farmer Veterans with business expansion. For more information on these FVC programs visit: farmvetco.org
The Mission Continues with support from Northwest FCS and CoBank At Northwest FCS, we continue to look for ways to support our military veterans. We were delighted to find The Mission Continues program that helps veterans successfully transition to post-military careers by reconnecting to their communities through volunteerism. What a great opportunity to help veterans who have a passion for agriculture learn new skills and take the next step in their careers. Together with CoBank, we are supporting service and leadership fellowships for three, post-9/11 veterans. These veterans will serve up to 20 hours a week for six months. Justin Blotsky is serving his Mission Continues fellowship at Growing Veterans, a nonprofit organic farm in Lynden, Wash. that promotes sustainable agriculture and local farming. As part of his fellowship, Justin is growing, harvesting and distributing locally grown food. He is also coordinating with partner farms to provide more opportunities for veterans to contribute to local food production.
“The founder of Growing Veterans, Chris Brown, realized there was a need to help veterans develop job skills outside the military,” says Justin. “Today we have veterans from just about every branch of the military volunteering on the farm. Lately I’ve been facilitating college students and young people to volunteer for work parties at Growing Veterans. It’s so rewarding to see these young people get involved in the farm and work alongside our veterans.”
Justin, 32, is earning his environmental economics degree from Western Washington University and The Mission Continues fellowship is providing him the opportunity to develop skills to start his own farm someday. “I would like to help establish another farm, maybe near the Seattle area,” says Justin. “There is such a need to get veterans together to learn new skills, build relationships and communities. That’s something I’m really excited and passionate about.”
Justin Blotsky
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RateWise™ Program Northwest Farm Credit Services is dedicated to helping the next generation of producers learn and grow. Our RateWise program rewards young, beginning and small producers for continuing their management education with interest rate reductions on new loans.
Eligibility RateWise is part of our nationally recognized AgVision program available to young, beginning and small producers with at least one of the following characteristics: • 35 years of age or younger.
Earning RateWise Credits – Participants can accumulate RateWise Credits for six years beginning on the date of their program registration. Credits will also be accepted online for eligible programs attended in the 12 most recent months prior to registering for the RateWise program. Northwest FCS Programs
University, Industry and Farm Service Agency Programs
½ day = 2 credits
½ day = 1 credit
1 day = 4 credits
1 day = 2 credits
1+ days = 6 credits
1+ days = 3 credits
• 10 years or less agriculture experience. • Producer with annual gross farm production of less than $250,000.
1 credit regardless of duration (maximum of 5 total credits earned)
*Participation in and/or completion of degreed programs are not eligible
Program Features Learn and Earn – Participate in educational programs, enhance your management skills, make your operation more successful, and accumulate RateWise credits to qualify for interest rate reductions on your next loan or renewed operating loan. RateWise Registration – Register online at northwestfcs.com/ RateWise to begin accumulating your RateWise credits today. Eligible Education Programs – Programs eligible for RateWise credits include: 1) programs hosted by Northwest FCS’ Business Management Center and Knowledge Center; 2) programs hosted by universities, industry groups and the Farm Service Agency; 3) programs hosted by other resources to improve producers’ management and production skills.
Interest Rate Reductions – Rate reductions increase with the number of credits earned. 10 credits: 0.25 percent interest rate reduction for three years 20 credits: 0.50 percent interest rate reduction for three years 30 credits: 0.75 percent interest rate reduction for three years
Certifying RateWise Credits – After registering for the RateWise program, participants can certify workshops and seminars completed by submitting a copy of the program’s agenda online. Additional Benefits – Book your first loan using RateWise credits and receive all the benefits of our nationally recognized AgVision® program available to young, beginning, and small producers including an invitation to the Young and Beginning Producers Conference.
Contact your local Northwest FCS office for more information -ORRegister for the RateWise™ program today at northwestfcs.com/RateWise
11 | Nor thwest Farm Credit Ser vices
Other Programs
™
Protect your security Could someone access your money without your knowledge? The risks are real. Northwest FCS has recently encountered several instances where scammers attempted to initiate fraudulent transactions, either over the phone or through email. Thanks to the knowledge and training of our staff these attacks were stopped before losses were incurred. Do you always know who is on the other end of the phone line or who really sent that email, text or letter? To access funds or sensitive information, scammers will use a variety of methods to target both a company and its customers. For example, they might target customers by posing as a legitimate person or business. We have encountered this in the form of Internet payday loan sites posing as Northwest FCS as well as fraudulent letters from companies claiming to be working on our behalf. Scammers will also target companies directly. They might create a fake email address using personal information that, at first glance, looks like a legitimate customer. Or they may call an employee, claiming to be a customer in urgent need of a wire transfer. In both cases, internal security measures and sound, human judgment are key to avoiding scams.
Remember: Be cautious, and if something
customers need to be proactive as well. Be aware of who you are talking to – are they really a Northwest FCS employee? Hang up and call your Northwest FCS contact directly if you are not sure. Be aware of your personal Internet security: Is your password secure and is your antivirus software up to date? Be wary of email, and don’t open or click on links until you are sure the message is legitimate. While we can’t eliminate threats to security entirely, we can use our expertise, judgment and technology to stay ahead of the curve. Know that the extra security measures we take together, which may feel inconvenient sometimes, are designed with your security and livelihood in mind. Northwest FCS is dedicated to keeping our customers’ funds and information safe.
5 rules of computer security • Keep software up to date • Use antivirus software and be sure to update frequently • Set up a firewall • Use secure passwords • Set up wireless encryption
looks suspicious, call your local branch to confirm its safety.
Each year, all Northwest FCS employees undergo comprehensive security awareness training to identify potential security threats and take appropriate action. Our employees understand that being proactive and acting quickly will help protect customer and company information. Northwest FCS is committed to advancing security at all levels, and you may have noticed a few additional verification steps recently when contacting us. For example, you may be asked additional authentication questions, which are designed to ensure we are speaking directly to you. Northwest FCS has taken steps to make sure your information is secure. However, to have an effective security net, our
Tips to creating a secure password • Use unique passwords for your financial software and online banking • Avoid reusing passwords that you use for social media sites. Many websites, including social media sites, have weak security. If your password is hacked at one of these, any online account for which you use the same password will be compromised. • Use at least eight letters and numeric characters. Hacking software can guess a six-character password with just lowercase letters in less than 10 minutes. • Mix uppercase, lowercase, numeric digits and special characters whenever allowed. • Test your passwords at howsecureismypassword.net. For a real eye opener, try variations of your password.
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Awarding Nearly $90,000 in College Scholarships Application Deadline March 1st Sons or daughters of current customers, or customers’
employees, are eligible to receive a college scholarship from Northwest FCS. Each year, 55 scholarships (eight high school
Business Management Center Engaging Seminars and Workshops Seeking, interpreting and sharing knowledge about the industries we serve is a core value of Northwest FCS. We’re firmly committed to helping business owners and their families to be successful long term. That’s why we’ve invested in educational programs and business facilitation to help you improve your
and three college) are awarded to students throughout
management skills and help transfer the leadership
Idaho, Montana, Oregon, Washington, and Alaska. High
and management of your business to the next
school students who plan to attend a higher education
generation.
institution within the next year are eligible for a $1,500 scholarship. Eight winners are selected from each state. In
We have a strong history working with family
addition, three $1,500 scholarships per state are awarded to
businesses in our Business Management Center.
college sophomores, juniors and seniors.
Knowledgeable and experienced facilitators have worked with hundreds of family operations and
Scholarship winners will be selected based on scholastic performance, leadership and activities, and a written essay.
boards of directors, helping them to improve their management practices, communication and strategic planning skills. Over the years customers have provided tremendous feedback. They say these
Interested students need to submit an application by
educational programs and one-on-one facilitation
March 1. Applications can be found at northwestfcs.com.
have made significant and lasting differences in their
Winners are announced in early May.
businesses. We hope you will take advantage of the BMC
Recent Scholarship Winners
programs offered in 2013-2014. The schedule changes every year and we do our best to provide programs in a variety of locations. During these sessions you will gain insights to better manage your business. Plus, you’ll have the opportunity to work with some of the most successful producers we have the privilege of working with every day . Trent Pearson Conrad, Mont.
Braeden Cornelius Veneta, Ore.
13 | Nor thwest Farm Credit Ser vices
Alana Peters Prosser, Wash.
2013-2014 BMC Calendar Basic Financial Workshops Level I
Level II
Financial Statements
Financial Analysis
Location
December 3, 2013
December 4, 2013
Idaho Falls, Idaho
December 10, 2013
December 11, 2013
Spokane, Washington*
December 12, 2013
December 13, 2013
Benton City, Washington
*Spokane Financial Workshops open to non-customers
Advanced Financial Workshops Level III
Level IV
Growth and Capital
Profits, Cash and Risk
Location
January 7, 2014
January 8, 2014
Spokane, Washington*
January 9, 2014
January 10, 2014
Benton City, Washington
January 14, 2014
January 15, 2014
Nampa, Idaho
*Spokane Financial Workshops open to non-customers
Featured Programs Family Business Succession Seminar Jan. 30 – Feb. 1, 2014
Coeur d’Alene, Idaho
Young and Beginning Producers Conference February 4-6, 2014
Spokane, Washington
Executive Producers Summit February 5-7, 2014
Spokane, Washington
Webinars Topic
Expert
Date
Strategic Planning
Dr. Dave Kohl
November 25, 2013
Family Business Succession
Rich Thornton
December 2, 2013
Economic Outlook (Q4)
Dr. Ed Seifried
January 17, 2014
Personal Finance
Dr. Alex White
February 13, 2014
Family Business Basics
Dr. Deb Houden
February 25, 2014
Find out more about BMC programs and register online: www.northwestfcs.com/register Questions: bmc@northwestfcs.com or call 866.552.9193 Note: BMC financial workshops build on preceding workshops. However, there are no workshop prerequisites.
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Global View of Best Management Practices Dr. David Kohl Professor Emeritus, Virginia Tech
At the New Century Farmer Conference recently in Des
on global economics. Toward the conclusion of the
Moines, Iowa, I had a delightful treat. My day usually
sessions, I invited the Aussie farmer, Richard Heath, to
starts with a workout at a hotel on an elliptical machine
tag-team with me to present the group with our top
while reviewing my notes as a standard operating
global best management practices. Let’s examine some
procedure. At the end of this particular sweaty workout,
of our discussion.
a gentleman with an Australian accent asked me what the New Century Farmer Conference was all about. I
Richard, coming from a precision farming conference,
explained that the FFA, in conjunction with leading
was keen to share with the group that managing data
sponsors such as DuPont Pioneer, Farm Credit, Case
and information would be a key to success regardless
IH, and CSX Corporation, sponsors an annual five-day
of the farm, ranch size or enterprise. In his opinion,
leadership event for approximately 50 young people
precision farming and data are prominent in the grain
who plan to have careers in production agriculture.
industry, and the livestock sector will see much more use of it to build efficiency and connect with domestic
This sparked his interest since he is an Australian
and global consumers. In the land Down Under,
farmer who is part of the prestigious Nuffield Scholar
electronic chips are embedded in cattle to assist in
program for leading agriculturalists in the United
more efficient pasture management and use, and they
Kingdom, Canada, and Australia. He had participated
are used to differentiate a commodity to the global
in a technology conference in Springfield, IL and
consumer.
was passing through to play golf in Nebraska before embarking on a trip to Canada. Many of you who know
Another best management practice is that individual
me would not be surprised that I proceeded to call a
producers and industries must be aware of the power
“Peyton Manning audible� and invited him to speak at
of social media, its impact on the image of agriculture,
the conference with me regarding the wild world of
and its impact on consumers. He explained that social
global economics.
media ballooned out of control and nearly shut down the cattle industry in Australia.
Facilitation of the conference with a 22-year-old producer from Down Under gave the high-energy
Many of the students thought that Richard and I
group of young producers a real-world perspective
spent time preparing for the session, since we both
15 | Nor thwest Farm Credit Ser vices
agreed that developing an advisory team is one of
We both emphasized selecting a relationship lender
the fastest growing best management practices in
who understands your industry and business is a
global agriculture. He suggested, and I agree, that
critical best management practice. The lender must
advisory teams made up of the lender, accountant,
not extend too much credit in the good times, and
and nutritionist or agronomist, along with at least two
even say “no” occasionally! The lender also needs to
individuals from outside the industry would result in
demonstrate a brand of consistency by “being there”
increasing business management systems acumen.
during the tough times when dealing with the cyclical
He explained that his family had just liquidated part
agricultural marketplace.
of their fourth generation farm family business in Australia. The outside perspective from an advisory
A young inquiring mind in the audience asked us,
team brought in an objective analysis to a tough,
“What is the best investment that I can make?”
emotional decision, and basically brought a conclusion
Without batting an eye, both of us responded, “Invest
to their major challenge.
in yourself.” Training and educational development are practices that previous generations generally
Both of us agreed that members of an advisory team
failed to engage in. Time to travel, taking time to step
should be compensated. This, in turn, encourages the
back, look and listen will be critical for the current and
business managers and owners to be more accountable
future generations of agriculturalists.
for having productive meetings and outcomes. Richard said, and again I agree, producers should
Finally, we discussed the importance of business
strive to be in the top 20 percent of peers in business
planning and goal setting. Richard will be taking
and financial benchmarks and ratios for your industry.
a new assignment as a professor at the University
He indicated that his family business benefited
of Sydney with the assignment of teaching farm
from sharing their financial and business operations
management and managing the University farm. He
information with peers to confirm what they were
indicated that business and operational planning will
doing correctly and identify areas for improvement.
be emphasized in his classroom, but he will also focus
He stated that if you are in the top 20 percent of
on practical applications.
your industry you will have a much better chance of weathering an economic cycle downturn, which we
Wow! A chance meeting in a workout room at a hotel
both agreed appears to be coming.
led to a worldwide educational experience for New Century Farmers. In my travels it is truly amazing
Modesty in debt was a best management practice
how much is common among successful agricultural
suggested by both of us. However, we were quick to be
businesses globally. Calling this presentation
challenged by the young producers who are in startup
“audible” was an educational touchdown for the
or expansion modes. Again, both of us responded by
future agricultural leaders, but it was also a great
indicating that in the strong profit years, you must hold
experience for Richard and me, who are passionate
back some money in the form of working capital, assets,
about farm management, the agriculture industry,
or cash for future adversity and to position yourself for
and its exciting future.
opportunities.
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| 16
Business Management Publications Northwest FCS recognizes the vital role of management decisions in the success of an agricultural business, and offers publications discussing various management topics for producers.
Risk Management Planning In today’s global agricultural economy, risks to producers, processors, and marketers are expanding and surfacing in many ways – exposing all to more unfavorable circumstances and increasing uncertainty. Developing a risk management plan helps business owners anticipate and mitigate risks, thus reducing their negative impact.
Strategic Business Planning Farm and ranch managers generally spend most of their time making day-to-day operational decisions such as when to seed or harvest, when to sell cows, or whether to purchase new equipment, now or later. While short-term operational planning is important, it doesn’t substitute for long-term planning.
How Lending Decisions Are Made Every lending institution has a set of credit standards or guidelines that are used to analyze and approve loans. To help our customers better understand the decision-making process for approving and renewing loans, we commonly refer to these standards as the Five C’s of Credit: Character, Capital, Capacity, Collateral, and Conditions.
Preparing Agricultural Financial Statements Thoroughly understanding your business’ financial performance is critical for success in today’s increasingly competitive agricultural environment.
Financing Agriculture: The Business Borrower-Lender Relationship One of the most critical decisions a businessperson makes is choosing a lender.
Land Buying Checklist Buying, selling, or financing rural properties is often different than properties within city limits. In this guide, you’ll find helpful planning tips and practical advice for buying rural land.
Understanding Key Financial Ratios and Benchmarks How does my business stack up compared to my neighbors? This question is becoming more and more common as the agricultural industry enters the 21st Century.
To access these Business Management Publications, visit
northwestfcs.com/resources
17 | Nor thwest Farm Credit Ser vices
local
advisors and locations
IDAHO Robert Ball Cody Bingham Jeff Blanksma, Jr. Adrian Boer Ray Carlson Connie Christensen Bill Clayton Cade Crapo Ron Elkin Carl Ellsworth Bruce Foster David Funk LeRoy Funk Brent Griffin John Hepton Jackie Hillman Brian Huettig Holly Hull Ken Koompin Brent Lott Karen Lustig Marty Lux Dan Mader Ray Matsuura Kyle Meyer Ron Mio Greg Moss Kirk Nickerson Lisa Patterson Erick Peterson David Rallison Nate Riggers 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
MONTANA Hamer Jerome Hammett Jerome Blackfoot Blackfoot Wilder St. Anthony Buhl Leadore Aberdeen Hansen Burley Rupert Nampa Dubois Hazelton Preston American Falls Idaho Falls Cottonwood Nezperce Genesee Blackfoot Rathdrum Fruitland Ketchum Howe Heyburn Moscow Franklin Nez Perce Cambridge Idaho Falls Shelley Terreton Preston Richfield Caldwell Gooding Nampa Bruneau Aberdeen Grace American Falls Declo Rexburg
73 Fort Hall Avenue, Suite A American Falls, Idaho 83211 (208) 226-1340 370 North Meridian Street, Suite A Blackfoot, Idaho 83221 (208) 782-3800 1408 Pomerelle Avenue, Suite B Burley, Idaho 83318 (208) 678-6650 501 King Street Cottonwood, Idaho 83522 (208) 962-2280 2225 West Broadway, Suite A Idaho Falls, Idaho 83402 (208) 552-2300 2631 Nez Perce Drive, Suite 201 Lewiston, Idaho 83501 (208) 799-4800 16034 Equine Drive Nampa, Idaho 83687 (208) 468-1600 102 North State, Suite 2 Preston, Idaho 83263 (208) 852-2145 1036 Erikson Drive Rexburg, Idaho 83440 (208) 656-2100 815 North College Road Twin Falls, Idaho 83301 (208) 732-1000
Les Arthun Bill Bergin Adam Billmayer Bart Bitz Ryan Bogar Keven Bradley Sandy Carey Tom Cheetham 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 Craig Iverson Tim Johnson Alan Klempel Paul Kronebusch Tim Lake Bryan Mussard Corie Mydland Traci Mytty Ken Olson Tracey Pearce Shawn Rettig Dave Sattoriva Nancy Schlepp Kim Skinner Carmie Steffes Steve Swank Kurt Swanson Duane Talcott Dale Tarum Bob Taylor Mark Tombre Miles Torske Brian Tutvedt Larry Tveit, Jr. Bruce Udelhoven Mike Wallewein Steve Wood
1001 West Oak Farm Credit Building, Suite 200 Bozeman, Montana 59772 (406) 556-7300 519 South Main Conrad, Montana 59425 (406) 278-4600 134 East Reeder Street Dillon, Montana 59725 (406) 683-1200 501 First Avenue South Glasgow, Montana 59230 (406) 228-3900 700 River Drive South Great Falls, Montana 59405 (406) 268-2200 1705 Highway 2 Northwest, Suite A Havre, Montana 59501 (406) 265-7878
502 South Haynes Miles City, Montana 59301 (406) 233-3100 3021 Palmer Street, Suite B Missoula, Montana 59808 (406) 532-4900 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
OREGON Wilsall Melstone Hogeland Big Sandy Vida Cut Bank Boulder Redstone Loma Choteau Malta Townsend Malta Shelby Angela Great Falls Moccasin Dillon Chester Rapelje Kinsey Winnett Dutton Bloomfield Conrad Polson Dillon Joliet Florence Richey Sheridan Rudyard Hingham Ringling Hall Plevna Chinook Valier Hammond Richland Denton Savage Hardin Kalispell Fairview Winifred Conrad Sheridan
Tech Plaza, Building 1, Suite 300 3490 Gabel Road Billings, Montana 59108 (406) 651-1670
120 Wunderlin Street, Suite 6 Lewistown, Montana 59457 (406) 538-7737
Headquarters
Monet Allen Reed Anderson Roben Arnoldus Tim Bare Glenn Barrett John Boyer Greg Brink Ron Brown George Bussmann Warren Chamberlain Jason Chapman Tim Dahle Dan Dawson Mike DeWall Susan Doverspike Rod Fessler Tom Fessler Joe Finegan Bruce Ford Dennis Harmon Ron Hjort Matt Insko Kenneth Jensen Jeremy Kennel Alan Keudell David Kunkel Leland Lage Dan C. Lewis Sharon Livingston Bill Martin Scott McClaran Ron Meyer Greg Myers David Neal Mary Olson Larry Parker Alan Parks Amy Doerfler Phelan Vikki Price John Reerslev Stephen Roth Shannon Rust Marc Staunton Anna Sullivan Steve Walker
WASHINGTON Montague, CA Brownsville Cove Roseburg Bonanza Haines Joseph Milton-Freewater Sixes Vale Klamath Falls The Dalles Roseburg Harrisburg Burns Madras Mt. Angel Cornelius Hermiston Grants Pass Oakland LaGrande Vale Monmouth Aumsville Portland Hood River Gaston Mt. Vernon Rufus Joseph Talent Tillamook Tangent Monmouth Helix Silver Lake Aumsville Nyssa Junction City Brothers Echo Merrill Hereford Stanfield
3370 10th Street, Suite B Baker City, Oregon 97814 (541) 524-2920 2345 N.W. Amberbrook Drive, Suite 100 Beaverton, Oregon 97006 (503) 844-7920 650 E. Pine, 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 378 West Idaho Avenue Ontario, Oregon 97914 (541) 823-2660 12 Southwest Nye Pendleton, Oregon 97801 (541) 278-3300 3113 S. 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 Jeff Bosma Russ Byerley Roger Canfield Mike Cobb Bill denHoed Richard DeRuwe Frank DeVries Scott Eschbach Patrick Escure Kevin Filbrun Stacy Gilmore Alan Groff Lori Hayles Jim Kile Cris Kincaid Jim Klaustermeyer Dave Klaveano Tristan Klesick Chris Kontos Steve Krupke David Lange Josh Lawrence Poppie Mantone Dan McKay Alan Mesman John Miller Pat Murphy Chuck Podlich Jeff Raap Sara Rolfs Jason Salvo Derek Schafer Jeff Schilter Danielle Scrupps Ben Smith Jerry Smith Lori Stonecipher Mark Tudor Jake Wardenaar Andy Werkhoven
Wapato Outlook Touchet Olympia Ephrata Grandview Dayton Lynden Yakima Quincy Pasco Pasco Wenatchee Pasco St. John Pullman Othello Pomeroy Stanwood Walla Walla Reardan Colfax Royal City Bingen Almira Mt. Vernon Toledo Chehalis Orondo Ellensburg Wenatchee Seattle Ritzville Olympia Ritzville Sequim Benton City 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 Colfax, Washington 99111 (509) 397-2840 1501 East Yonezawa Boulevard Moses Lake, Washington 98837 (509) 764-2700 455 East Hemlock Street, Suite D Othello, Washington 99344 (509) 488-2396 9530 Bedford Street Pasco, Washington 99301 (509) 542-3720 1223 Sheridan Avenue, Suite A Prosser, Washington 99350 (509) 786-6400 1900 W. Nickerson Street, Suite 215 Seattle, Washington 98119 (206) 691-2000 1515 S. Technology Blvd., Suite B Spokane, Washington 99224 (509) 340-5600 2735 Allen Road Sunnyside, Washington 98944 (509) 836-3080 1 West Pine 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
yields Fall 2013
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P.O. Box 2515 Spokane, Washington 99220-2515 New address? Please notify your local Northwest FCS office.
Northwest FCS customer Dan Mikulecky - Iraq war veteran turned wheat farmer. Thank you for your service.
Northwest Farm Credit Services proudly supports our veterans as they transition from soldiering to farming. Fact is, 45 percent of veterans come from, and will return to, rural America. It’s our honor to help veterans continue serving our country – as the next generation of U.S. producers.
northwestfcs.com | 800.743.2125