BUILDING AgCountryHARVESTRELATIONSHIPSFarmCreditServices September 2022
OverGreetings,the
AgCountry Farm Credit Services / HARVEST / September 2022 2 AgCountry.com
If you have feedback on your customer experience here at AgCountry, we would appreciate hearing from you. I encourage you to reach out to your local AgCountry office. I also invite you to consider attending a future AgCountry event. These events are a great way to either connect or reconnect with your fellow peers and AgCountry staff. Thank you for your continued patronage. May you have a safe and successful harvest season. Sincerely, CEO
A Letter From The
past few months, I have had the pleasure of visiting with customers at various appreciation events, focus groups, customer advisory committees, and trade shows. I always enjoy getting the opportunity to meet new people and see familiar faces. When thinking about the value of these conversations, it dawned on me just how far we have come post-pandemic and the importance of reconnecting. It was easy to become disconnected over the last few years. With restrictions in place, our communication methods became more distant and less in-person. Now that we have largely moved beyond those restrictions, it is important that we once again find that sense of connection. Human beings, after all, are social creatures. Here at AgCountry, we take pride in being in the relationship business. As a memberowned cooperative, our customers are at the center of all that we do. If we are not meeting or exceeding your expectations, we are not fulfilling our mission of service. Relationships here are so much more than business transactions; they are the fabric that holds everything together. By genuinely caring for the success and well-being of our customers, we go a step beyond a traditional lender. Communication is critical to building connections and establishing relationships. At the heart of communication is understanding. We find understanding by holding two-way conversations. The recent customer focus groups and advisory committees have provided us with opportunities to hold important conversations with a diverse range of customers. Your thoughts and feedback are invaluable to us. We use this feedback to gauge our current performance and help make longterm business decisions. As you can see, all of these themes tie together to form who we are at AgCountry. We can accomplish great things when we work as a connected organization that establishes sound relationships with our members and prioritizes two-way communication.
3Serving Agriculture and Rural America AgCountry Farm Credit Services / HARVEST / September 2022 TABLE CONTENTSOF 14-1511-138-10456716-171819 BOARD OF DIRECTORS ELECTION RESULTS CASH MANAGEMENT OPTIONS MIDWEST COUNCIL ON AGRICULTURE INSURANCE REMINDERS A VISIT TO GORDON FARMS Q&A WITH ONLINE SERVICES CYBERSECURITY AWARENESS MONTH LAND VALUES ACROSS AGCOUNTRY’S TERRITORY SCHOLARSHIP OPPORTUNITIES & RECIPIENTS FIELDING QUESTIONS PODCAST The information in this magazine has been prepared for informational purposes only and does not constitute legal, tax investment advice. This publication is copyrighted in its entirety. © 2022 All rights reserved. AgCountry Farm Credit Services, ACA is an Equal Credit Opportunity Lender and Equal Opportunity Employer.
Christopher A. Johnson, Wahpeton, ND
Kenneth Schmid, Devils Lake, ND Dean Schoenberg, Mohall, ND Scott Spear, Drake, ND Jesse Stuehrenberg, Kent, MN
Kurt Gartner, Atwater, MN
Dale Zahradka Region 1 Justin Dagen Region 2 Greg Nelson Region 3 Richard Price Region 6 AgCountry Farm Credit Services / HARVEST / September 2022 4 Focused on Ag. Focused on You. CONGRATULATIONS TO THE NEWLY ELECTED BOARD MEMBERS Dale, Justin, Greg, and Richard!
AgCountry Director Regions
Parker Gates, Mohall, ND Bruce Gumz, Dorchester, WI Dennis Jakobi, Granton, WI Matt Jennen, Fergus Falls, MN
Darwyn Kleven, Minot, ND Adam Lund, Dawson, MN Dustin McGregor, Fairdale, ND Ray Melander, Merrill, WI Alex Moore, Hallock, MN Jeremy Rittenbach, Jamestown, ND
Four positions on the AgCountry Board of Directors were elected by shareholders in August. Once the voting deadline passed, votes were counted by an independent tabulator. Congratulations to the following candidates, each of whom was elected to a four-year term: 2022 ANNUAL ELECTION RESULTS
THE MEMBERS OF THE 2023 NOMINATING COMMITTEE WILL BE: Jacob Amb, Portland, ND Scott Bernardy, Vesta, MN Brett Blackwelder, Chokio, MN Deven Efta, Greenbush, MN Joe Ericson, Wimbledon, MN Douglas Fjerstad, Fosston, MN
To help customers minimize interest expense and earn interest on excess funds, AgCountry offers Farm Cash Management (FCM) accounts through AgriBank. A FCM account can be linked to a revolving line of credit to provide a return on excess cash, similar to a money market account. Funds sweep daily between the FCM account and the revolving note. Customers who do not have a revolving loan can invest in a FCM stand-alone account. The current rate is 1.65%, and AgriBank adjusts the rate periodically based on marketconditions.AgCountry Marketing Day is the premiere educational event of the year for our cooperative. Traditionally held in Fargo, North Dakota, the event features some of the top industry experts from around the world of agriculture. By attending AgCountry Marketing Day, you will have the ability to learn and network along with fellow farmers and ranchers. Regardless of if you have been farming for three decades or just getting started, there is something for everyone!
5AgCountry.com AgCountry Farm Credit Services / HARVEST / September 2022 SAVE THE DATE! AGCOUNTRY MARKETING DAY JAN. 25 2023
There are no fees to open or maintain an FCM account, no minimum investment amount, and no withdrawal penalties. A FCM account is an investment in AgriBank Investment Bonds, one of the four district banks in the Farm Credit System.
Written by: Becky Thibert Chief Finance Officer
AgCountry also offers Future Payment Funds, also known as Funds Held accounts. These accounts pay the same rate of interest as the FCM accounts and are a vehicle for customers who want to set aside future loan payments in an interestbearing account. Unlike FCM accounts, Funds Held balances can only be used for future payments. AgCountry is not a depository institution, and these accounts should not be considered savings or checking accounts. For more information on either option, contact your AgCountry relationship team. AgriBank financial reports are available at agribank.com/financials.
CASH OptionsMANAGEMENT
The Midwest Council on Agriculture is an agriculture advocacy group organized in 2021 by former Chairman of the U.S. House Agriculture Committee Collin Peterson. It is made up of over 60 businesses and farm organizations from seven states across the upper Midwest. AgCountry Farm Credit Services is one of the founding members of the organization. AgCountry’s SVP of Government and Public Affairs, Howard Olson, is chairman of the Midwest Council’s Board of Directors.
AgCountry Farm Credit Services / HARVEST / September 2022 6 AgCountry.com
MIDWESTthe COUNCIL ON AGRICULUTURE
relationships in D.C., which provided an opportunity to create an ag organization that could represent farms and agribusinesses in the upper Midwest.
Chairman Collin Peterson
Written by: Howard Olson SVP Government & Public Affairs
The Midwest Council meets in person quarterly, and virtually each month in-between. The council hosted its first annual summer agriculture forum in Detroit Lakes, Minnesota on August 22 and 23. At the summer forum, members heard from a number of USDA leaders and other ag leaders on current policy, recent legislation, and future opportunities for changes and improvements in ag policy and collaboration within the Pleaseindustry.look for more information on the Midwest Council of Agriculture in the near future. To stay up to date, please visit their website at midwestcouncil.org.
The Council’s mission is to harness the power of a multi-state coalition of farmers, ranchers, agribusinesses, commodity groups, and agriculture lenders who are united with common goals. The group advocates for strong agriculture and economic policy promoting the long-term sustainability of the ag industry in the Midwest region.
Get to Know
Over his long tenure in office, Chairman Peterson became a very strong voice in Washington for agriculture across not only Minnesota but North Dakota, South Dakota, Wisconsin, and the rest of the upper Midwest. When he left office in 2021, the region lost a strong voice with decades of seniority in the U.S. House of Representatives. The founding members of the Council recognized that he has the experience, leadership, and continued
Dairy Revenue Protection (DRP) Livestock Risk Protection (LRP) Coverage is available daily. Daily price and coverage must be locked in by 9:00AM the following day with a signed endorsement.
7A Member-Owned Cooperative AgCountry Farm Credit Services / HARVEST / September 2022
INSURANCEREMINDERS DATES TO REMEMBER
2023 CROP YEAR IMPORTANT
12/01/2211/20/229/30/229/30/229/30/229/30/229/30/229/30/229/30/22 NA01/15/2311/14/2211/14/2207/15/23NANA11/14/2211/14/22 12/01/2201/15/2311/15/2207/15/2307/15/2307/15/2311/15/2211/15/2211/15/22
Crop/Coverage APHRye Forage Production AYP Forage Production (MN, WI) Margin Protection (MP) Grass Seed (Select counties in MN, ND) Cultivated Wild Rice Winter Wheat (Select WI Counties) Cranberries (Select WI Counties) Pasture Rangeland Forage (PRF)
ClosingSales ReportingAcreageReportingProduction
GORDON
Four generations of Gordon Family Farmers
If you visit the farm, you will find sugar beets, corn, sweet corn, and soybeans growing in their fields.
Although livestock is not part of the farm today, beef cattle had been raised by the family up until 2006. Visit to FARMS
Farming is well known to be a family affair. For nearly three quarters of a century, a member of the Gordon family has been farming in Swift County, Minnesota. Little did Arthur Gordon know when he purchased his first piece of land in the 1940s that a new tradition was beginning. That tradition proudly continues today, albeit with a few more acres and a few more family members.
8 Your Best Total Solution
A
Today, 7,500 acres are farmed by the Gordon family, which is made up of brothers Adrian and Brian Gordon along with their brother-in-law Reid Carlson. In addition, Adrian’s son Andy, Brian’s son David, and Reid’s son Ryan have all joined the farm as the fourth generation.
9
BrianAgCountry.”echoes
“We know exactly what has been done to our land,” said Adrian. “We know the fertility, the crops that have been taken off, the yields, and all that ties together.” These diligent records allow Gordon Farms to make betterinformed decisions when it comes to the management of their land. In a period of high input prices, every little bit can go a long
WorkingAgCountry.comwith
AgCountry Prior to officially working with AgCountry beginning in 2008, members of Gordon Farms attended educational meetings put on by the cooperative. It was here that they began to see value in doing business with AgCountry. One aspect that stood out most to Gordon Farms was the “Whenstaff.we went to make our first visit to AgCountry in 2007, we were treated with open arms,” recalls Adrian. “Some of the most incredible people worked on our loan and put things together that just sold us on the fact that this is an organization that we want to be a part of. We started pretty small, but within six months we were in tune with those thoughts when it comes to working with their insurance specialist.
From Left to Right: Ryan Carlson, Reid Carlson, Andy Gordon, Brian Gordon, Adrian Gordon, and David Gordon Daily 7:00 a.m. meetings at Gordon Farms
Keys to Success When working in a capital-intensive industry like agriculture, there is tremendous power in recordkeeping. At Gordon Farms, detailed recordkeeping has been a practice for decades. In fact, they can trace every chemical or fertilizer application on their land dating back to the 1980s.
AgCountry Farm Credit Services / HARVEST / September 2022
“One of the biggest reasons we do business with AgCountry is the professionalism they bring to the table on keeping us aware of our crop insurance needs,” states Brian. “They are always there if we need Relationshipsthem.” are important in farming and ranching. Establishing trust between the farmer and lender is how successful relationships are built. At Gordon Farms, this trust comes into play in everything they “Whendo. we have this strong partnership with our insurance specialist or loan officer, and they have our best interests in mind, as challenges or opportunities come our way, we can all throw everything on the table and figure out what is the best thing for Gordon Farms,” said Ryan.
Right: Adrian enjoys a laugh and handshake with Jim Just AgCountry Farm Credit Services
“When the farm economy is headed in the wrong direction, use your records to work with your loan officer more often instead of less,” offers up Adrian. “This will prevent surprises during difficult Habitstimes.” can be hard to break the more they are practiced.
To Adrian, it is a term that holds great power. Each decision they make today is done so with the notion of maintaining a sustainable future. That mindset applies to both the ground they farm and the people who farm it.
/ HARVEST / September 2022
10 AgCountry.com way towards farm profitability.
With a solid business plan in place and good records to accommodate it, Gordon Farms is well positioned to carry on the family legacy of farming.
- Jim Just, SVP Producer Marketing
When it comes to knowing every detail on your farm or ranch, establishing a good habit early on can pay great dividends further down the road. One of the best pieces of advice Ryan passes along to young or beginning farmers is to “spend the extra time getting the details right.”
“Good decisions are based on knowledge - knowing where you are financially and where you are on production. Good financial and production records provide the knowledge to make solid decisions. Successful farmers and ranchers know their numbers. We strongly encourage every operation to work closely with their loan officer or specialist like the folks at Gordon Farms do with their loan officer, Jen Dragt, in order for everyone to be on the same page.”
Accurate records also play an important role in maintaining a good working relationship with a lender. By keeping good records, your loan officer will be in a better position to offer recommendations on how to navigate your financial landscape.
Farming for the Future Sustainability is a word that gets kicked around quite often today.
Like soil, a farming business can become depleted. That is why each family member who wishes to join the operation must bring something new to the table. With at least six family members now in business together, roles and responsibilities are identified and known to everyone within the group. This dynamic has allowed the family farm to grow while maintaining its sustainability for the future, but more changes may not be too far off. “I just turned 61,” said Adrian. “Reid just turned 60. Now we are in the phase where we get out and the boys can stay in and be sustainable. We have been very fortunate to be able to get the young generation back.”
As everyone in agriculture knows, economic conditions can change quickly.
“I really love how easy it is to use and the time and money it saves me by not having to drive into our branch office just to drop off a deposit. Now have same day deposits with very little hassle!”
Q Q A A
Customers appreciate the ability to pay down their loan, manage their accounts, and view their statements whenever and wherever they prefer!
For starters, it provides easy and convenient access, whenever and wherever, to detailed account information and electronic transfers. Over 75% of our online customers use the mobile app and enjoy the same features as the browser version of AgPay.
features allow you to customize your view: Create alerts to monitor activity on your account Nickname accounts Add or remove external bank accounts Opt into eStatements Use the Activity Center to monitor the status of transfers and payments, recurring transactions, and view images of checks submitted through Remote Check Capture. With year-end approaching, take advantage of online information to help with your recordkeeping and tax planning. For example, print or download the new Summary of Accounts screen, which provides a snapshot of all your accounts at a glance, grouped by borrower.
ANSWERS
- Jeffrey Paul
What makes the AgPay mobile app so popular?
• Same day credit if submitted prior to 3:00 p.m. CT on business days.
Customers using the My AgCountry portal enjoy the benefits of a secure, personalized site that offers electronic access to AgCountry statements and documents, secure messaging, account summary information, and AgPay. With AgPay you’ll see account details, transaction history, draft images, and statements. You can transfer funds or make loan payments electronically. Customize loan payments with recurring transactions or future date your transfers or Manypayments.self-service
QUESTIONS
11Serving Agriculture and Rural America
In addition, Remote Check Capture is included in the app providing the ability to easily take a picture and submit checks you receive. No mail delays or waiting for checks to process through your checking account, saving customers time and •money.Checks are applied as principal payments on your short-term loans or to Farm Cash Management (FCM) standalone accounts.
•
•
•
we
with ONLINE SERVICES Q &A
(Referring to Remote Check Capture)
•
AgCountry Farm Credit Services / HARVEST / September 2022
What kind of information and features are available with Online Services?
With so many features, what if I need help?
Q
Give the Online Services team a call at 855-4027849 or email OnlineServices@AgCountry.com
- David Rudningen &A
I’m cautious about online access; how secure is my data?
QA
A “The remote check capture feature is invaluable. Thanks for providing online services, we look forward to using it for our banking business in the future.”
Protecting your personal information is top priority at AgCountry. Our online platform follows best practices proven effective by the financial industry to keep customer data safe, including training, identity verification, firewalls, and data encryption during transmission. When accessing accounts online, you will be required to enter a secure code provided on a registered phone number, as a secondary method of authentication. To assist in preventing fraud, our system blocks access after too many incorrect sign in attempts. The mobile app also offers biometrics for secure yet easy access when on the go. When it comes to communications, customers exchange secure messages through the My AgCountry Portal. This service encrypts email exchanges, mitigating the potential a hacker could be ‘eavesdropping’. Secure Messaging is required when sending Personally Identifiable Information (PII) including but not limited to Social Security numbers, employer ID Numbers, loan/account numbers, bank account numbers, and other confidential or sensitive content. Beyond our built-in security, you can setup customizable alerts for assistance tracking balances and transactions posted within AgPay. These security practices, in addition to others, are monitored to secure your sensitive data and protect you from fraudulent activity.
Q
To access a virtual tour within AgPay while in a computer browser, click on the ‘i’ at the top of the Home screen. Help guides are available throughout AgPay and mobile AgPay by clicking on the ‘?’. Still need help? No worries! AgCountry has a knowledgeable team of Online Services specialists, available to provide helpful online support. Online Services is available Monday-Friday, 8-4:30 p.m., for questions and are always happy to help, whether it’s unlocking a My AgCountry account or guiding you through your first online transfer. One-on-one coaching is also available by appointment if you want a little more help getting started.
AgCountry Farm Credit Services / HARVEST / September 2022 12
Focused on Ag. Focused on You.
13AgCountry.com AgCountry Farm Credit Services / HARVEST / September 2022
QQAA
What’s next?
We continue to look for ways to provide value and meet customer needs. Watch for additional enhancements and new features in the future. Ready to access accounts online? Check out our Online Services page on AgCountry.com under Products & Services to “Learn More” about My AgCountry and AgPay and to Request Online Access.
“At first, I was reluctant to link my bank with my accounts at AgCountry. After a few minutes on a call with helpful staff I felt more comfortable. The hand-holding was only needed for syncing the first account. The others have been easy and painless.” - Neil Robinson Q &A 855-402-7849 | OnlineServices@AgCountry.com
AgCountry Online Services
We Serve Agriculture: Whenever. Wherever.
Written by: Dan Verkuehlen VP Security
October marks Cybersecurity Awareness Month, which was established to help individuals protect themselves against cyberattacks like malware, ransomware, social engineering fraud, and phishing attempts. As the world progressively moves into the digital space and cyberattacks become more commonplace, it is essential to protect yourself online. In honor of Cybersecurity Awareness Month, AgCountry wants to ensure that you and your operation stay safe online by sharing some helpful tips to keep your online information protected. Check them out on the next page!
AWARENESS
MONTH
14
CYBERSECURITY2022
AgCountry Farm Credit Services / HARVEST / September
15 AgCountry Farm Credit Services / HARVEST / September 2022 Keep operating systems up to date and use an antivirus programDo not give out personal information over the phone or in email Do not open, download, or click unknown attachments or links in emails or Usetextsastrong and unique password for each account Never share sensitive information over unsecured Wi-Fi networks Regularly check financial statements and credit reports Be conservative about what information is shared online and via social networks Verify authenticity of requests from companies or individuals by contacting them directly Back up data using an external hard drive or cloud service
AgCountry Farm Credit Services / HARVEST / September 2022 16 AgCountry.com
AgCountry’s 2022 benchmarks rose 28.6% as it increased from its 2021 value of $43.2 million to $55.5 million of total value as of July 1, 2022. The 2022 valuations indicate that 15 benchmarks have reached historical high market values, which include eight benchmarks in North Dakota; five benchmarks in Minnesota; and two benchmarks in Wisconsin that surpassed their previous high value Strongwatermarks.demand for real estate was observed in the fall of 2021 and early 2022, attributed in part to low interest rates, higher commodity prices,
Across AgCountry’s Territory
Written by: Tim ChiefKreftAppraiser and an abundance of direct payments to producers from government farm programs as well as pandemic relief programs such as the Paycheck Protection Program (PPP). Market activity was strongest in the Red River Valley and southern Minnesota, which are regions that observed dramatic increases due to the specialty crops, better than average 2021 crop production, and strong market competition to purchase land. Western North Dakota saw more moderate increases in value, which was likely due to the drought conditions in 2021 that impacted crop quality and yields, while central North Dakota, northern Minnesota, and central Wisconsin observed strong increases in value due to better yields and quality. We continue to see investor activity related to the advantages of 1031 tax-deferred exchanges or a shift in asset management strategy by moving funds from other investment vehicles. The majority of buyers continue to be owner-operators either purchasing rented land or expanding the size of their operations through new purchases.
Land Values
The Farm Credit System employs an annual benchmark study to track land value changes across lending territories. A select number of agricultural properties, referred to as a benchmark, have been appraised on an annual basis for several decades to track value trends as an assessment that takes into consideration the variation in quality and location of AgCountry’s service area.
17A Member-Owned Cooperative AgCountry Farm Credit Services / HARVEST / September 2022 28.6% AgCountry’s Benchmarks are Up Over Last Year as of July 1, 2022 $40M$60M$50M$30M$20M$10M $43,238,000 Total Land Value at the end of 2021 $55,550,000 Total Land Value as of July 1, 2022 Total Value of Benchmark Portolio 8 ND 5 MN 2 WI 15 historicalhaveBenchmarksreachedhighs LAND VALUES $4K$3K$6K$2K$5K$7K$1K$0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 YEAR VALUE NDmN wi (Buss & johNsoN) wi (craNBerries) $ PER TOTAL ACRE VALUE Year 2012 $5,335 $2,723 $3,221 $5,309 2014 $5,768 $3,806 $4,289 $4,378 2016 $4,919 $3,015 $4,306 $4,052 2018 $4,744 $3,162 $4,485 $3,863 2020 $4,533 $3,226 $4,642 $3,829 2022 $6,742 $4,474 $5,246 $5,010 2013 $5,913 $3,898 $2,937 $5,034 2015 $5,313 $3,359 $4,418 $4,121 2017 $4,751 $2,950 $4,284 $4,052 2019 $4,635 $3,131 $4,485 $3,777 2021 $5,156 $3,383 $4,642 $4,262 MN ND (BussWI&Johnson) (Cranberries)WI
SCHOLARSHIP RECIPIENTS!
Kate Christensen, Battle Lake, MN
Simon Kroll, Royalton, MN
Emma Honeyman, Regent, ND
Applicants must be from an actively farming or ranching family, OR must be planning to pursue a career in farming or some other aspect of agriculture such as agricultural extension, agricultural education, soil conservation, farm and ranch management, agricultural finance, veterinary medicine, or agri-business.
Upperclassmen Scholarship AgCountry is offering ten $1,000 scholarships for college students who have completed 69 credits or more at a college or university; are studying in agribusiness, business, or a related field of study; and plan on working in agricultural lending or related agricultural services. The application deadline is June 1, 2023.
Like farming or ranching, the cost to pursue higher education can be high. AgCountry believes in the value of supporting young professionals as they attend a college or university.
One way we invest in the future of our industry and our rural communities is by offering a scholarship to students who are already enrolled at an institution of higher ed as well as high school students looking to pursue a career related to agriculture.
Anastasia Poull, Washington, WI
Aaliyah Schommer, Madison, MN
Claire Moffet, Barney, ND
SCHOLARSHIP OPPORTUNITIES
Kendra Murray, Genesee, ID Ryan Peterson, Grove City, MN
High School Scholarship AgCountry Farm Credit Services is offering fifty, $1,000 scholarships for high school seniors entering college in the fall of 2023. The deadline for application is March 1, 2023.
Emily Sharp, Cavalier, ND To apply for either scholarship please visit: AgCountry.com
Applicants must be residents of a county served by AgCountry Farm Credit Services within Minnesota, North Dakota, or Wisconsin. Final selection will be based on academic aptitude, vocational promise, personal attributes, leadership, and financial need.
AgCountry Farm Credit Services / HARVEST / September 2022 18 Your Best Total Solution
CONGRATS UPPERCLASSMEN2022
Hannah Braaten, Glenwood, MN
Check out the Fielding Questions podcast!
19AgCountry.com AgCountry Farm Credit Services / HARVEST / September 2022 Have a question about farm finance? Curious about a product or service? Looking for some insight?
Fielding Questions is a collaboration between AgCountry and the Red River Farm Network that explores the world of farm finance and rural life. You can find the Fielding Questions podcast on Apple Podcasts and Google Play. We want to hear from you! Submit questions about a topic through Facebook, Twitter, or by the Contact Us form on AgCountry.com.
AgCountry Farm Credit Services P.O. Box 6020 Fargo, ND 58108 Wishing You a SAFE & SUCCESSFUL HARVEST! 2021 PAID$76PATRONAGEMILLIONTOCOOPERATIVEMEMBERS It pays to be a member of our cooperative.
