GROW
A Letter from Leadership
The current economic conditions within agriculture are top of mind for many farmers and ranchers. Select commodity prices, like corn, soybeans, and dairy, have softened over the last year while others such as cattle remain strong. This comes as the cost of operating a farm or ranch today is higher than in recent history.
The uncertainty that some farmers are feeling is understandable. I often think of the young or beginning farmers and ranchers seeing this environment for the first time. It can be challenging enough when the commodity you grow or raise hits a
slump. Factor in higher interest rates and input costs and it can feel like a great weight on your shoulders. I believe this moment serves as a reflection point where we look critically at our businesses and assess business model assumptions.
Having a business plan, and following it, is key to any farm, ranch, or business. Your plan acts as a map, no matter the economic conditions. Having well-documented long-term strategies and objectives gives you direction and keeps your eyes fixed on where you need to be.
It is also important to build in the discipline of updating your business plan to reflect ever-changing circumstances. You should annually conduct a thorough assessment of current conditions and potential risks, establish new annual financial objectives, determine your business risk appetite, and ensure longterm strategic objectives are still appropriate for the business.
Every industry goes through economic cycles. Agriculture is no different in that regard. It is important to know that AgCountry Farm Credit Services is a resource for you. Our cooperative stands ready to help when you need it.
AgCountry Farm Credit Services, ACA is an Equal Credit Opportunity Lender and Equal Opportunity Employer. The information in this magazine has been prepared for informational purposes only and does not constitute legal, tax, or investment advice. This publication is copyrighted in its entirety. © 2024 All rights reserved.
Working with a lender who has been through every type of cycle takes pressure off your shoulders by providing assistance to place you in a position of strength.
The knowledge of AgCountry’s team cannot be understated. Many teammates grew up on farms, and some continue to farm today. We know agriculture and are confident we can fully meet your needs with our broad array of services. You can lean on our experience if you find yourself in an unfamiliar environment.
AgCountry will always be working for you regardless of the economic cycle. We are a mission-driven organization that always strives to benefit our member-owners.
Thank you for your continued patronage of AgCountry. It is a pleasure working on your behalf.
Sincerely,
EVP AgCountry Business Development 701-499-2559
Marc.Knisely@AgCountry.com
AgCountry Receives NDSU Foundation’s Partner in Excellence Award
AgCountry Farm Credit Services is the recipient of the 2024 Partner in Excellence Award, which recognizes a corporation, foundation, or organization that has given significant support as well as demonstrated inspirational philanthropic giving in the university.
The relationship between AgCountry and NDSU is longrunning. Key areas of support include programming, student opportunities, facilities, and important faculty initiatives.
A donation in 2007 helped create Barry Hall and the AgCountry Auditorium, which is home to the university’s College of Business and the Agribusiness Applied Economics department. Recent facility support initiatives include the Center for Trading and Risk and the Peltier Complex.
In 2023, a philanthropic commitment by AgCountry established the AgCountry Endowed Chair in Agribusiness, which is located in the NDSU Center for Trading and Risk. This is the first and only NDSU-endowed position funded solely by an outside entity.
The Farm Credit Fellows program is another joint venture that provides students with real-world financial experience while earning college credits. We also actively participate in the university’s career fairs and partner with the NDSU Career and Advising Center to connect qualified graduates with open positions at AgCountry and the broader agricultural industry.
These initiatives have helped bridge the gap between education and employment in agriculture while ensuring a pipeline of skilled and knowledgeable professionals.
L to R: John Glober, NDSU Foundation president & CEO; Howard Olson, AgCountry SVP Government & Public Affairs; Lynn Pietig, AgCountry board chair; David Cook, NDSU president.
Exploring All YBF Options with
s ta rting gate
YOUNG Beginning FARMers OR
Written by: Wyatt Wardner, VP Loan Officer, & Dahltin Pahl, VP Branch Manager
The AgCountry Starting Gate program is offering new opportunities to the future of agriculture. Our agricultural cooperative is focused on providing unique and preferential financing, educational resources, networking opportunities, and knowledge of external programs to young or beginning farmers and ranchers. One component of our offerings is our understanding of and ability to work with state and federal programs that position our members for long-term success.
Many state and federal programs are available to young or beginning farmers, and sometimes it can be hard to decide what to do, what program to use, or how to start. Our team is committed to staying up to date on state and federal programs that benefit young or beginning farmers.
Many federal programs beneficial to young beginning farmers are offered through the Farm Service Agency (FSA). One specific program offered by FSA is the Farm Ownership Down Payment Loan Program—commonly referred to as the 5-45-50 program. This program can be advantageous to use as young or beginning farmers can purchase land with only a 5% down payment. The way this program can work is AgCountry can provide financing for 50% of the purchase, FSA can provide financing for 45% of the purchase, and the buyer provides a 5% down payment. An added benefit is the reduced interest rates FSA offers.
The FSA also has programs that aren’t specifically for young or beginning farmers but can be beneficial. AgCountry is focused on and has the knowledge to find programs that best fit the needs of the young or beginning farmer.
There are also state-specific programs that are great for young or beginning farmers. The Minnesota Rural Finance Authority (RFA) offers different options. Applicants must reside in the state to be eligible. One specific RFA program is the Beginning Farmer Loan Program, which can be used with FSA’s Farm Ownership Down Payment Loan Program. This program allows RFA to participate with outside lenders to finance half of a purchase. Here’s how it works: let’s say you make a land purchase of $500,000 where FSA finances 45%, AgCountry finances half, and you put 5% cash down. RFA would then take AgCountry’s portion and provide financing for 45% of that amount. Pairing FSA and RFA together is great for the borrower as both entities provide reduced interest rates. (See Figure 1.)
There are a few more RFA programs to note. Young or beginning farmers
can apply for a Down Payment Assistance Grant when they purchase their first farm. The Beginner Farmer Tax Credit is another program that benefits the young or beginning farmer and the party selling, leasing, or renting an eligible asset to a young or beginning farmer. This works in the form of a tax credit. Specific program details can be found on the Minnesota Rural Finance Authority’s website.
The Bank of North Dakota (BND) offers several different interest rate buydown programs that beginning farmers in the state of North Dakota can use. The Chattel Loan Program helps purchase equipment or livestock with a 4% interest rate buydown on half of the loan. This
program works in conjunction with AgCountry to help beginning farmers get started. (See Figure 2.)
BND offers another beneficial program called Ag PACE. This program supports non-traditional agriculture activities with an interest buydown to supplement farm income. Qualifying items under Ag PACE include subsurface field tiling projects, irrigation equipment, equity shares of an ag-processing business, or capital improvements to a livestock or dairy operation.
There are eligibility requirements for all programs discussed in this article. Contact your local AgCountry loan officer to learn how these programs could benefit your operation.
The original version of this article did not mention the $300,150 maximum borrowing amount from FSA and the Figures displayed incorrect information. Figure 1 did not fully display how FSA’s 5-45-50 program works. The wrong program name, example numbers, and figure description were used in Figure 2. FSA loans cannot be used with BND’s Chattel Loan Program.
Figure 2. Utilizing BND’s Chattel Loan Program for equipment purchases.
Figure 1. How financing works using FSA’s 5-45-50 program with RFA’s Beginning Farmer Loan Program.
Ask for Equipment Financing
Built for agriculture, powered by Farm Credit
As profit margins tighten and the cost of new and used equipment continues to climb, many producers are leveraging financing to spread out their machinery costs and reduce the financial burden of keeping their equipment up to date.
Since 2020, AgCountry Farm Credit Services has partnered with AgDirect®, one of the fastest growing equipment financing programs in the nation, to offer competitive loan, lease, and refinancing* options as an alternative to manufacturers’ captive equipment financing and local lending sources.
Through this partnership, AgCountry Farm Credit Services customers can count on attractive rates, fast decisions, and flexible terms no matter where they choose to buy. Because AgDirect has no manufacturer rebate or financing restrictions, customers can also take advantage of manufacturers’ cash payment discounts and still finance through the AgDirect program, allowing them to leverage the best of both worlds.
“One of the reasons AgDirect has been successful is its connection to the Farm Credit System,” says Lucas Schiebe, an AgDirect territory manager in North Dakota. “As part of the Farm Credit System, customers can count on a lender that has been serving agriculture just as long or longer than some of the major equipment manufacturers. It’s rewarding to play such a critical role in helping producers afford the equipment they need so they can remain competitive and profitable. And AgDirect earnings help offset the operating expenses of participating Farm Credit System associations, which helps pay their eligible customers patronage.”
AgDirect is offered by 15 participating associations of the Farm Credit System—representing 75% of total Farm Credit System association assets and a capital base of $35 billion. That means along with offering the most ag-friendly terms in the business, AgDirect is one of the most financially secure and dependable sources for equipment financing.
Over 25 years of simple, fast, and flexible financing
Since 1998, AgDirect has been serving customers and dealers by offering loan, lease, and refinancing options for both new and used equipment purchases completed at the dealership, at auction, or through private party transactions.
At the dealership, 70% of AgDirect’s credit decisions are made in less than 30 seconds, allowing customers to count on quicker closing and funding for their equipment needs. To apply, participating AgDirect dealer salespersons simply enter the customer’s financing application online.
A dedicated financing team and network of AgDirect territory managers are available to assist with auction and private party purchases and can help both dealers and producers with quoting and selecting the best financing solutions. And when it comes to customer service, 100% of calls are answered by a live person during business hours.
Dedicated to the customer experience
The online tools used to support customers and dealers through the AgDirect transaction process include a built-in payment calculator that allows dealers to provide their customers with accurate pricing options and financing comparisons.
An online application, electronic signatures, and a mobile app are also used to improve ease of use and provide anytime access. Thanks to these tools, customers can submit secure financing applications 24/7, sign documents remotely, and run different scenarios before making a purchase decision all from their mobile phone.
After a transaction closes, customers are easily able to manage their AgDirect account and make payments online or on the go through a streamlined and secure online and mobile account management tool.
“It goes back to our focus of serving agriculture’s machinery and equipment financing needs,” says Schiebe. “All of our digital tools serve a fundamental purpose of maintaining that focus while creating flexibility, faster turnarounds, and a sense of convenience.”
Nobody finances ag equipment like AgDirect
Subject to approval, there are several other advantages to choosing AgDirect equipment financing:
• As low as $0 down
• 2-7 year terms on most equipment and up to 10-year term on pivots
• Competitive variable and fixed rates for new and used equipment
• Delayed payments up to 15 months
• No prepayment penalties**
When you are in the market to buy, lease, or refinance equipment, be sure to ask for AgDirect financing.
Call your AgCountry loan officer with any questions or contact AgDirect at agdirect.com or 888-525-9805.
*Farm Credit System debt is ineligible for refinance.
**Excludes leases over $500,000.
AgDirect is an equipment financing program offered by Farm Credit Services of America and other lenders, including participating Farm Credit System Institutions
Crop
15
Livestock Risk Protection (LRP) Transfer/Cancellation
Acreage Reporting Date - Spring Crops, Grass Seed,
Cultivated Wild Rice
Production Reporting Date - Grass Seed
Annual Forage Sales Closing Date
Forage Seeding - Fall Sales Closing Date
15 Crop Hail Cash Discount SEPTEMBER
30
Winter Wheat (MT, SD, WI) Sales Closing Date 31
AYP Forage Production (MN, WI) Sales Closing Date
APH Forage Production Sales Closing Date
Cultivated Wild Rice Sales Closing Date
Grass Seed Sales Closing Date
Margin Protection Sales Closing Date
Rye Sales Closing Date
Serving Agriculture Whenever. Wherever.
Business today takes place in farm fields, tractor cabs, or barns. AgCountry’s Online Services is a safe and easy way to pay bills, deposit checks, view your accounts, and so much more.
Here’s what current users are saying:
“ “ “
I recently joined the AgCountry Farm Credit Services mobile app and I highly recommend you do as well! It is easy and convenient to use any time of the day and anywhere I happen to be.
I love it!
I regularly make use of AgCountry’s Online Services. Their website is easy to navigate and I feel that everything is very secure. I enjoy the freedom the website gives me to get things done easily from my home at a time that is convenient for me.
It’s convenience at your fingertips, and you can access your accounts and conduct transactions 24/7 from anywhere with an internet connection. This eliminates the need to visit a branch during specific hours and saves time.
— Beth Ann Sabolik — Theresa Kerkaert — Lois Wurm
Corporate Transparency Act:
Most Existing Entities Need to Register with FinCEN Before January 1, 2025
Written by: The AgCountry Legal Department
The Corporate Transparency Act went into effect on January 1, 2024, and most entities need to register and report certain beneficial ownership information (BOI) to the Department of Treasury’s Financial Crimes Enforcement Network (FinCEN).
A corporation, limited liability company, limited partnership, limited liability partnership, or limited liability limited partnership created by filing a document with the Secretary of State or Department of Financial Institutions is considered a reporting company and required to register. A sole proprietorship, general partnership, and trust are generally not considered a reporting company and, therefore, would not be required to register and report.
Entities existing before January 1, 2024, must file before January 1, 2025. Entities created on or after January 1, 2024, and before January 1, 2025, have 90 calendar days to file after the entity receives actual or public notice that the registration is effective. The due date for entities created on or after January 1, 2025, is 30 calendar days after the entity receives actual or public notice that the registration is effective.
Reports are to be filed electronically with FinCEN and will include information about the entity and certain owners of the entity. There are exceptions for certain reporting companies to file the BOI report, but most exceptions will likely not apply to AgCountry’s member-owners.
There are significant penalties for noncompliance, which include failing to file or providing false information. Penalties range from up to $500 a day fine, a criminal fine up to $10,000, or imprisonment for two years. There is a 90-day safe harbor if a person unknowingly submits inaccurate information and corrects the report within such timeframe.
Contact your legal counsel or trusted advisor if you are unsure whether the Corporate Transparency Act registration and reporting applies to your entity or you have questions about the Corporate Transparency Act.
This article is for informational and educational purposes and is not legal advice. Additional information and the report to file can be found at: https://www.fincen.gov/boi.
Optimum: A Powerful Tool for Informed Crop Insurance Decisions
Introduction
Choosing the right crop insurance policy is crucial for any farm operation. With numerous options available, navigating the selection process can be challenging— even overwhelming. This white paper introduces Optimum, a valuable tool designed to simplify your decision-making and ensure you select the policy that best fits your specific needs.
Optimum: Tailored Analysis for Informed Choices
Optimum tackles the complexity of crop insurance by simulating 100,000 scenarios. These simulations analyze yield variations and price fluctuations, providing a comprehensive overview of potential outcomes for any policy you consider. The user-friendly interface presents this data in a clear and
format, allowing you to tailor your analysis to your farm’s unique situation.
Possible Filters
Step-by-Step with Optimum
Initial Exploration:
Your specialist will guide you through various insurance plans, including RP, YP, ECO, and SCO, alongside Margin Protection and others. Unit structures and coverage levels will be adjusted based on your farm’s specific needs.
Filtering and Selection:
Once filters are set, a list of potential policies appears. Your previous year’s selection remains highlighted for easy reference. You can choose to view the top 1, 3, 5, 10, or all filtered policies, sorted by factors like coverage levels, unit structure, cost per acre, potential returns per acre, and various risk factors.
Detailed Data Analysis:
After narrowing down your options, you can delve deeper with a variety of charts. These charts provide insights beyond the basic policy listing. Some key charts include:
Farm Harvest vs. County Average Yields:
This chart highlights the difference between your farm’s historical yields and the county average for your crop. This information is crucial when considering area-based plans like ECO or SCO.
Farm Historical Yields:
This chart displays your farm’s past yields alongside various coverage level options. This is valuable if you haven’t received payouts in the past, helping you determine if a higher coverage level might have provided protection.
On-Leveled Analysis:
This powerful tool analyzes historical changes in prices and yields. It allows you to see how selected policies would have performed in past years with current data, providing valuable insights into potential outcomes.
On-Leveled Analysis
Sample data only for illustrative purposes
Optimum: Empowering Informed Decisions
By leveraging Optimum’s data and visualizations, you gain a deeper understanding of how policy options would have behaved in various scenarios. This empowers you and your specialist to make informed decisions that can significantly impact your farm’s financial security.
Conclusion
Optimum simplifies the complex world of crop insurance by presenting data in a clear and actionable format. This user-friendly tool empowers you to explore various options, understand potential outcomes, and ultimately select the policy that best safeguards your farm’s future profitability.
For a personalized consultation, and to learn how our exclusive Optimum tool can benefit your operation, contact your local AgCountry Insurance Specialist today.
Showcasing Rural America
We believe the beauty of agriculture and country life should be displayed for all to see, but we need your help. We’re accepting photo submissions for our 2025 calendar. Submit your top three photos that capture the spirit of agriculture and rural life for your chance to be featured in the next calendar. Three winners will also be chosen for cash prizes.
First Place: $500
Second Place: $350
Third Place: $200
Submit your photos by September 1, 2024 by visiting AgCountryPhotos.com.
Celebrate National Dairy Month with Us!
June is National Dairy Month and we’re excited to celebrate all month long! Stop into your local AgCountry office anytime during the month of June and enjoy an ice cream treat on us as a small thank you for being a valued AgCountry customer.
As a friendly reminder, all AgCountry offices will be closed on the following holidays:
Juneteenth: Wednesday, June 19
Independence Day: Thursday, July 4
Labor Day: Monday, September 2
Farm Show Schedule
Attending a farm show is a great way to see the latest machinery, hear from industry leaders, and explore new business opportunities for your farm or ranch. Here are three great opportunities to check out:
Location: Morgan, MN
Location:
Empowering Your Operation: Essential Farm Accounting Services
With our blend of specialized services and extensive experience, AgCountry’s farm accounting specialists are uniquely positioned to support farmers, ranchers, and agribusinesses in their financial management.
Comprehensive Business Services
Our broad range of financial management solutions are designed to cater to all agriculture entities:
• Marketing basis balance sheets to help you understand the value of your business.
• Detailed payroll services to ensure accurate and timely employee payments and tax compliance.
• Projections and budgeting to plan with confidence.
• Financial statement education from the AgCountry team to empower you to make informed decisions.
• Eye on Earnings Report to provide a benchmark for your operation to similar farms in your region.
A Collaborative Approach
Your farm accounting specialist will work with multiple AgCountry departments to ensure your operation is taking advantage of all AgCountry has to offer. We work with:
• Tax,
• Insurance,
• Succession and retirement planning, and
• Lending teams.
Work with a team as committed to agriculture as you are. Our specialized focus on agricultural accounting, combined with our comprehensive business services and collaborative approach, makes us uniquely qualified to support your operation.
Contact your local AgCountry office for more information on how you can benefit from AgCountry’s Farm Accounting services.
2024 High School SCHOLARSHIP RECIPIENTS
Congratulations to the 2024 High School Scholarship Recipients. 50 high school seniors were chosen to receive a $1,000 AgCountry scholarship. The scholarship will be awarded upon proof of enrollment in college in the fall of 2024. Award notification letters were mailed to the recipients on April 15, 2024. Here is a complete list of the 2024 recipients:
Abby Rivinius Gackle, ND
Ava Schoenfeld Lake Benton, MN
Calley Ruesch Abbotsford, WI
Danielle Michalski Warren, MN
Adriana Behl Spicer, MN
Avery Wiese Humboldt, MN
Carli Vigesaa Hawley, MN
Emma Krohnfeldt Alexandria, MN
Alison Heyen Colfax, ND
Breanne Zawislan Unity, WI
Corinne Sazama Wisconsin Rapids, WI
Erin Michalski Warren, MN
Addyson Hefta Forest River, ND
Avery Edwards Wausau, WI
Camry Swanson Lynd, MN
Elizabeth Coudron Milroy, MN
Ahlea Mouser Fergus Falls, MN
Billi Fortier Wildrose, ND
Connor Hodek Fordville, ND
Emma Selensky Harvey, ND
Hadyn Schuler Minot, ND
Kadin Kolden Ryder, ND
Lauren Dolezal Danube, MN
McKenna Keller Lisbon, ND
Esther Steinke Hope, ND
Ross Thompson Lakota, ND
Jack Wertish Renville, MN
Kara Siemieniewski Geneseo, ND
Mackenzie Wall Sheldon, ND
Mya Rueth Neillsville, WI
Gabrielle Schneider Morris, MN
Samuel Green Saint Thomas, ND
Kacie Rexin Sykeston, ND
Kensey Knight Kindred, ND
Mariah Lovro Norwich, ND
Reece Steenson Cummings, ND
Gregory Felchle Denhoff, ND
Titus Bjerketvedt Hancock, MN
Heidi Steffes LaMoure, ND
Kaleb Heins Morris, MN
Lyvia Misegades Henning, MN
Miranda Kveum Souris, ND
Evan Olson Forbes, ND
Samantha Burchill Casselton, ND
Jacob Kramer Douglas, ND
Katelyn Zeug Lucan, MN
Marcus Kennedy Amherst, WI
Nickolas Kingzett Calvin, ND
Gavin Engelbrecht Alexandria, MN
Taelyn Dunnigan Walhalla, ND
