2023 PREPARE Magazine

FOCUSED ON AG. FOCUSED ON YOU. December 2023

P R E PA R E

A Letter from the CEO Greetings, As the year closes out, my mind wanders to Zig Ziglar’s famous quote, “Success occurs when opportunity meets preparation.”

We know agriculture is an industry that is constantly evolving. From technological advancements, shifting weather patterns, and consumer preferences, farmers and ranchers must be prepared for change to be ready for the next opportunity. Having the right attitude sets the tone for your success. Accepting change and preparing for it is more than just future achievements; it is strategically positioning yourself for future relevance.

Preparation starts by identifying what is working, looking for opportunities to transform, and being ready for the unexpected.

Make sure you reflect and have good knowledge of things that work or have worked in the past. Apply this knowledge as you look for new strategies to improve your business.

Keep an open mind as you explore new possibilities.

Having an attitude open to change impacts overall productivity.

Streamlining your operation or business with increased efficiencies makes you stronger. The farmers and ranchers who always seek ways to strategically improve their operations, whether through new technologies, better management practices, or other means, are the ones who are most likely to succeed in the long run. By consistently striving to improve their operations, farmers and ranchers can ensure that they remain competitive and profitable.

Accepting change can be difficult.

However, change is not about what we are losing, but about what we prepare to gain. An open mindset towards change helps you to stay agile, which, in turn, helps you respond more effectively to any unforeseen circumstances.

We take our mission of serving agriculture and rural America

seriously, which is why we always seek to be better. The frequently asked questions on the following page outline one initiative your Board of Directors is working on to help prepare our cooperative for the future. A collaboration with Farm Credit Services of America and Frontier Farm Credit is a strategic decision that helps all three associations achieve our goals and best serve our members.

We do not know what the future holds, but we are proactively working to prepare for anything that comes our way. Change and change readiness is an important consideration when planning and helps us to be agile in our approach while fostering a growth mindset positions us to meet the growing and evolving needs of our patrons. We appreciate your support as we continue our ongoing transformation to better serve current and future generations of farmers, ranchers, and agribusinesses. Thanks for your continued patronage.

Sincerely,

Marc Knisely, President & CEO 701-499-2559 Marc.Knisely@AgCountry.com

A Message about Collaboration

from the Board of Directors Hello AgCountry Patrons, AgCountry Farm Credit Services is committed to delivering top-quality financial solutions for agriculture and rural America. That is why we are pleased to have signed a non-binding Letter of Intent to explore a strategic collaboration with two other Farm Credit associations, Farm Credit Services of America and Frontier Farm Credit, as previously shared in a customer letter. While this strategic undertaking is still in process, we wanted to provide an update via the following question and answer format: What do you mean by a strategic collaboration?

This collaboration will be a contractual agreement designed to further leverage the three associations’ collective strengths and capabilities to create greater value for our member-owners.

What are some of the things that will be shared by the associations in this collaboration?

This collaboration will integrate shared business operations, technology systems, and management teams across the three associations. We expect this integration to allow the three associations to streamline operations and improve the experience for both members and employees.

What does this mean for the AgCountry brand?

The AgCountry brand will continue. We believe our brand and related reputation are of critical importance and value, and we expect this collaboration will allow us to continue to retain, grow, and leverage AgCountry’s brand. We will also continue our community involvement and other initiatives that are important to our members.

What does this mean for AgCountry’s patronage program?

A key component of our cooperative is our patronage dividend. As a key Board responsibility and decision, each association will retain its ability to declare patronage and determine the amount. We expect the financial benefits of the collaboration will strengthen our ability to provide sustainable patronage dividends.

How is this different than a merger?

It is important to note that this strategic collaboration is a contractual agreement, not a merger. Any party can leave the collaboration. However, by working together, we believe we will be positioned to achieve greater efficiencies and provide more value to our members.

We are excited about the potential of this strategic collaboration with Farm Credit Services of America and Frontier Farm Credit. By working together, we expect to deliver greater service to our members and adapt more quickly to changes in the industry.

While this strategic undertaking is still in process, we are committed to keeping our members informed. Please stay tuned for further updates.

How will the collaboration be governed?

Each association will continue to have its own Board of Directors, and all participating Boards will work together to facilitate the governance of the collaboration.

Greg Sabolik, Board Chair Greg.Sabolik@AgCountry.com

What impact will this collaboration have on AgCountry’s strategy?

We expect the collaboration will position AgCountry to adapt quickly to the increasing speed and complexity of technological advancements and member expectations. By combining our efforts, we expect to accelerate our current strategic vision beyond what we could achieve on our own.

Lynn Pietig, Vice Chair Lynn.Pietig@AgCountry.com

Contents 5-7

14-15

Getting the Most Out of Every Acre: Insurance Planning for the Year Ahead

Land Values Across AgCountry Territory

8 Succession and Retirement Planning Made Simple

9 Grain Bin Rescue Program

CONVERSATIONS THAT MATTER.

Professional insights centered on agriculture and rural life.

Listen to the AgCountry Fielding Questions Podcast on Apple Podcasts, Google Play, Amazon Music, and Spotify.

10-11 Negotiating a Fair Rental Contract

16 AgCountry Endowed Chair of Agribusiness Established at NDSU Through North Dakota State University Foundation

17 Rep. Michelle Fischbach Receives Friend of Farm Credit Award

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Farm Bill Extended

AgFocus Conferences

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Congratulations to the 2024 Photo Contest Winners

AgFocus Meetings 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. © 2023 All rights reserved.

CROP INSURANCE

Getting the Most Out of Every Acre

Insurance Planning For The Year Ahead Written by: Beth Erickson, VP Insurance It is never too early to think about your 2024 multiperil crop insurance (MPCI) renewal. Now is the time to reflect on how your insurance policy worked for you this year when reviewing your numbers with your AgCountry team. There are many factors to consider when determining the right insurance policy. Keep in mind the perils that hit our territory in 2023, including spring flooding, drought, hail, and wind damage. Do not forget the last peril—declining commodity prices.

At your insurance renewal meeting, you will discuss various options available to you for the upcoming year.

Popular coverage options are MPCI, hail, and wind.

However, the options do not end there. Lesser-known policies are becoming popular. Enhanced Coverage Option (ECO) and Supplemental Coverage Option (SCO) were extremely hot topics last spring and should be explored again when determining what is best for your operation.

Here are a few examples using AgCountry’s exclusive Optimum Analyzer tool to demonstrate how ECO works. The numbers used are for corn in Stevens County, Minnesota.

Assume your farm has an actual production history (APH) of 200 bushels per acre, while carrying 75% MPCI coverage and ECO 95% county-based coverage this year. How does that look now?

For the ECO policy, the average county yield in Stevens County this year was 193. Due to the price change alone, dropping from $5.91 down to $4.88, producers

who carried ECO received all their liability back on the ECO policy. Here, you would have spent $31.48 per acre for the policy and you would have a gross indemnity of $106.38 per acre, or a $74.90 per acre net (Figure 1).

ECO Net Indemnity

Coverage Level Gross Indemnity Estimated Premium: Expected Area Revenue Revenue Trigger Final Area Revenue Percent of Revenue Amount of Insurance Payment Factor

$74.90

86-95% $106.38 $31.48 $1,145.95 $1,088.65 $946.23 82.6% $106.38 1.000

Figure 1: MPCI Coverage Plus ECO Now compare the previous scenario to your standard MPCI coverage with no additional insurance coverages such as ECO. If you harvested an APH yield of 200 bushels per acre and the price drops 17.4% like this year, at a 75% coverage level that does not trigger a

MPCI Net Indemnity

($1.11)

Coverage Level 75% Gross Indemnity $8.10 Estimated Premium: $9.21 $1,182.00 RP Expected Revenue RP Revenue Trigger (Liability) $886.50 $878.40 Final Revenue 74.3% Percent of Expected Revenue

Figure 2: Standard Revenue Protection (RP) Coverage

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CROP INSURANCE payment. However, if you only harvested 180 bushels per acre with the same price drop, you would start breaking even on a standalone MPCI policy (Figure 2).

This year is the picture-perfect example of how ECO works. Had corn prices stayed near $6.00, or if we had not experienced a drought and had a fantastic crop, we would have paid the premium and received no indemnity in return.

There is no right or wrong answer to managing your farm; it comes down to your goals and main concerns.

Have you recently gone through an expansion or are focusing on growth? If so, consider additional products to ensure you have the right policy to cover those added commitments. If you are focusing on maintaining what you have, you may not need the additional insurance, but be sure your cost of production is covered should disaster strike. In each of these scenarios, the goals of the operation are different. This leads each farmer to look at insurance in a different way.

As you prepare for your 2024 renewal meeting, the

following items should be considered to facilitate a meaningful and in-depth discussion about mitigating risk based on your operation’s needs: 1. Planting intentions We need to analyze what makes sense based on the crops you expect to plant. Do we need to alter unit structure or coverage levels based on the soil types, weather patterns, etc? If you farm in multiple counties, do we need to make different coverage decisions based on the county and how those acres fit with the rest of the farm?

2. Cost of production Being in tune with your cost of production allows us to make sure we have minimum coverage in place. Next, we look for any additional opportunity we could insure.

3. Reflect on 2023 Did your policy work last year? Did you have enough coverage? Did your hail and wind policy work as planned? If not, should those dollars be spent differently?

Indemnity Payments $/acre

$250

$150 $100 $50 $0

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Standard MPCI Policy

SCO

Figure 3: Indemnity Payments Comparison from 2004-2022

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ECO

RP

CROP INSURANCE 4. Historical concerns Do you have a year you wouldn’t want to live through again in your farming career? If so, let us develop a plan to avoid a similar outcome.

MPCI Products: Farm Yields County Yields $6.68 $6.31 $5.91 $5.56 $5.18 $4.88 $4.60 $4.31 $4.01

RP(80)EU 133 134 $14.05 $(39.52) $(97.44) $(148.12) $(203.15) $(203.15) $(203.15) $(203.15) $(203.15)

RP(75)EU

143 143 $14.05 $(39.52) $(97.44) $(148.12) $(203.15) $(203.15) $(203.15) $(203.15) $(203.15)

SCO-RP(75/100)

152 153 $62.15 $5.91 $(54.89) $(108.09) $(165.85) $(203.15) $(203.15) $(203.15) $(203.15)

162 163 $128.95 $69.01 $4.21 $(52.49) $(114.05) $(162.65) $(203.15) $(203.15) $(203.15)

ECO-RP(95/100) 172 173 $195.75 $132.11 $63.31 $3.11 $(62.25) $(113.85) $(162.01) $(203.15) $(203.15)

181 182 $255.87 $188.90 $116.50 $53.15 $(15.63) $(69.93) $(120.61) $(173.10) $(203.15)

Bad farming years serve as a learning opportunity. Are there years you would like to forget?

When we ask that question, Figure 4: 75% MPCI Coverage without ECO we get answers like, “Well, 2013 coming off of 2012.” Optimum MPCI Products: RP(80)EU RP(75)EU SCO-RP(75/100) ECO-RP(95/100) allows us to look at historical Farm Yields 133 143 152 162 172 181 data to drive decision making, County Yields 134 143 153 163 173 182 although you may remember $6.68 $103.94 $103.94 $152.03 $218.83 $244.09 $244.34 2013, based on the data $6.31 $43.93 $43.93 $89.37 $152.47 $176.33 $176.56 $5.91 $(20.93) $(20.93) $21.62 $80.72 $103.07 $103.29 available in Optimum there is $5.56 $(77.69) $(77.69) $(37.66) $17.94 $38.96 $39.17 a larger timeframe to look at $5.18 $(139.32) $(139.32) $(102.02) $(50.22) $(30.63) $(30.44) (Figure 3). If we experienced $4.88 $(139.32) $(139.32) $(139.32) $(98.82) $(50.02) $(30.40) $4.60 $(139.32) $(139.32) $(139.32) $(139.32) $(98.18) $(56.78) the 2008, 2013, or 2014 $4.31 $(139.32) $(139.32) $(139.32) $(139.32) $(139.32) $(109.27) crop years again, how would $4.01 $(139.32) $(139.32) $(139.32) $(139.32) $(139.32) $(139.32) different policies perform based on current conditions?

Figure 5: 75% MPCI Coverage with ECO For example, if we experienced the 2014 crop year again in 2023, you would receive roughly $250 per acre net if you bought 75% MPCI plus ECO/SCO. Compared to buying 85% enterprise unit, which would pay you $111 per acre net. Figure 3, a chart available within Optimimum, gives us a historical view to reflect on. However, we can look forward to protecting those years that caused us significant loss that we cannot afford to sustain again.

To see a large number of possible outcomes for the year all in one spot, the matrix view in Optimum will help. Your cost of production can be used to determine possible profit scenarios depending on what happens during that crop year. The formula used in this calculation is:

RP(85)EU 200 194 $382.79 $308.79 $228.79 $158.79 $82.79 $22.79 $(33.21) $(91.21) $(151.21)

212 213 $462.95 $384.51 $299.71 $225.51 $144.95 $81.35 $21.99 $(39.49) $(103.09)

222 223 $529.75 $447.61 $358.81 $281.11 $196.75 $130.15 $67.99 $3.61 $(62.99)

212 213 $436.80 $358.36 $273.56 $199.36 $118.80 $55.20 $(4.16) $(29.65) $(39.26)

222 223 $503.60 $421.46 $332.66 $254.96 $170.60 $104.00 $41.84 $(22.54) $(29.48)

RP(85)EU 200 194 $356.64 $282.64 $202.64 $132.64 $56.64 $4.11 $2.10 $(27.38) $(87.38)

At your renewal meeting, you’ll review your projections for the year and you know your cost of production on corn will be around $945 per acre. How well are you covered if you carry 75% MPCI but add ECO to your policy? Figures 4 and 5 demonstrate how much of an impact ECO can have on your bottom line.

As you can see, we have removed quite a bit of risk by adding ECO. While it does come at a cost to you, this helps to illustrate the additional value that comes with it.

To see Optimum analyze your farm data, contact your local AgCountry insurance specialist. We will explore all angles of risk mitigation and help you achieve your operational goals.

Crop Value + Indemnity – Premium = Net Margin – Cost of Production = Profit

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SUCCESSION & RETIREMENT PLANNING

Succession & Retirement Planning

MADE SIMPLE

Succession and retirement planning does not happen overnight. It takes time, effort, maintenance, and mutual understanding. Focus on these six areas when mapping out your succession plan.

Communication: Communication is essential. It keeps you working together or creates chaos and conflict. Communicate all intentions with your family, business partners, and the professionals you work with.

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2

Goals: Assumptions are dangerous. Know your goals and expectations along with all other interested parties. Strive for a shared vision for the future of your farm or ranch.

Engage Consultants: Help is available. Assemble a team of tax, legal, insurance, lending, and planning professionals. Every operation is unique and deserves special consideration.

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Perspective: If you have a successor, consider that you are transferring a business to the successor not a collection of assets. Wills, trusts, and buy-sell agreements need to be constructed to ensure the operation stays together and does not suffer or fail.

Documentation: Put everything in writing. If it is not, it does not exist. Review the documents every three to five years.

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Time is Your Friend: Transitioning an operation or business takes time; give yourself plenty of it.

General planning estimates are three to five years for retirement with no successor, and five years to a decade for transitioning to a successor.

Start planning today to reach your goals tomorrow.

Contact the AgCountry Succession & Retirement Planning team through your local office.

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GRAIN BIN RESCUE PROGRAM

Grain Bin

Rescue Program We are experiencing an increase in demand for grain bin storage due to factors such as higher yields, profitability, commodity diversification, and production surpassing elevator capacity. As grain bin storage solutions become more common, so does the risk of related accidents.

To combat accidents, we want to remind producers of safety practices everyone should follow and encourage fire departments to apply for grain bin rescue kits or replacement parts.

Safety Practices: • Post warning signs on bins and at all entry points to make everyone aware of the hazards.

• Restrict access to bins and piles so that unauthorized people and youth can’t enter.

• Work from outside the bin and above the highest point of grain.

• Aim for zero entry into bins.

• If entry is essential, use proper safe entry procedures including: • locking out and tagging out all grain unloading equipment, • having an observer, • avoiding lose clothing, and • using a harness.

Grain Bin Rescue Program Grain bin rescue kits provide specialized equipment and training that can save lives in emergency situations.

This equipment is specifically designed for grain bin rescue scenarios and includes panels, harnesses, and ropes. The training is designed to raise awareness and provide practical skills for swift rescue operations.

Having equipment readily available can speed up the rescue process and increase the chances of a successful outcome. Regular training and equipment maintenance are essential aspects of any grain bin rescue program.

AgCountry is donating grain bin rescue equipment to 48 fire departments across the territory in 2023 and into 2024. Since 2017, nearly 200 area fire departments have received life-saving equipment and training. We are proud to support rural America.

Program details, donations, and applications can be found at:

AgCountry.com/Rescue

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LEASING

Negotiating a Fair Rental Contract

A Q&A with David Bau and Nathan Hulinsky

How do you define “fair” when it comes to rental contracts?

DB: Fair means both farmer and landlord share the risks and rewards. A flexible contract gives the best option for both parties with the farmer having crop insurance and the landlord having a base or minimum rent.

NH: The marketplace helps determine what is fair in the given year and the given area. As a farmer or rancher, knowing your cost of production is key. Ask yourself, what can I afford to spend on rent?

Each farmer is different. Knowing your local numbers is important.

Keep in mind the trends in your county or surrounding counties.

What does a fair rental contract look like?

DB: A fair contract shares the risks and rewards between the farmer and landlord. A base rent covered by crop insurance and a flexible agreement works best.

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David Bau

Nathan Hulinsky

Both David and Nathan are extenstion educators with the University of Minnesota Extension

NH: The negotiated price is set when the farmer is comfortable with paying a certain amount and the landowner is comfortable taking the same amount. Factors to keep in mind are the length of the contract. Is it one, two, three, or more years? The first right of refusal is common to include in a contract. Also, the location of the land is important as well. Is the field right down the road, or is it 20 miles away? Proximity matters.

What questions should be asked as part of the process?

Where should people begin?

Is there a difference when negotiating farmland vs pastureland?

NH: You should start the negotiation process with your goals in mind. As a farmer, what is the most you can afford to pay for rent on a parcel? For the landowner, what is the lowest you are willing to rent a parcel for? Also, knowing your local rental rate trends is very helpful.

However, we keep coming back to knowing your cost of production. This is critical to your success as a farmer.

NH: What prices do you find acceptable? How many years is the lease? How many acres? Does the landowner have any mandates for renting the land, crop type, tillage system, or anything else?

Does the landowner want a crop share or other involvement with the farming business? Are there any fertilizer considerations?

NH: Data on pastureland is less available. The biggest difference is that in pastureland there are considerations for how many animals per acre, water source, and other feed. Who is maintaining the fences? The animal units per acre is a big difference. On cropland, a farmer simply rents acres and plants a crop. With pastureland, it is common to pay per animal and not per acre.

LEASING

What questions do you commonly get asked about this subject?

We’re seeing more and more landowners removed from agriculture. Does this make negotiating more challenging when the landowner doesn’t or hasn’t farmed?

NH: The biggest question is what average land rental rates are in a farmer’s local county. We have resources on our website to help.

DB: Yes, it does. As farmland gets We will note that the website does passed to a different generation not project for 2024, though. or leaves the family, these nonOther key questions include tile farming heirs or owners want the and irrigation. A farmer can install highest rent possible in many cases. tile on rented ground, but the farmer would want a long-term contract to help them utilize What advice do you have for the tile for years to come. If the negotiating with non-farming landowner pays for the tile, they landowners? will want a higher land rental rate.

A similar logic applies to irrigation.

DB: Have examples of income and These are not easy questions and expenses without rent and show can complicate negotiations. the net funds available for you.

NH: It is helpful to show trends in local and regional land rents.

What are some of your The farmer can help educate the best tips for people when landowner. This may, however, negotiating? cause a problem because of a conflict of interest. I encourage all DB: Try to have an open to attend a University of Minnesota conversation about the profit Extension Land Rent workshop. potential and how much you are Also, explain the cyclical nature of sharing with the landlord. the agricultural economy, including NH: Know your cost of production how corn and soybean prices go and your county land rental rate up and down and affect a farmer’s trends. Do not start the discussion income. It can be helpful to explain unprepared. Have a maximum or how you will care for the land and minimum number that you are have a vested interest in applying willing to accept and stick to it. fertilizer and other inputs. Also, stating your intentions to farm this field for multiple years.

If you’re a young or beginning farmer, are there any other considerations?

DB: To get new ground, you are often bidding against other aggressive producers. This means you will have a harder time competing. A good way to get your start is by looking for local farmers who are approaching retirement age with no farming heirs.

NH: Do not pay more for land rent than you can afford to. Losing money on renting 40 acres does not help your operation. Know your cost of production. There are some tax incentives through the state of Minnesota for landowners to rent to beginning farmers.

Where can farmers and ranchers go to get more resources?

DB: The University of Minnesota Extension has great resources on land rental data extension.umn. edu/business/farmland-rentand-economics.

Is there anything else that people should know?

NH: Do not be afraid to ask questions throughout the process. If you need more resources, please contact the University of Minnesota Extension.

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01-17-24 Willmar, MN 02-09-24 Fargo, ND (Virtual option available) 02-12-24 Jamestown, ND

Registration is Open AgCountry’s AgFocus Conferences are the premiere educational events of the year for our cooperative. New this year, three regional conferences will be held across our territory in Willmar, Fargo, and Jamestown. These three conferences will feature top industry specialists from around the world of agriculture. In addition, we’re offering a virtual option of the Fargo conference for those who can’t attend an event in person.

Attend an AgFocus conference to learn and network alongside fellow farmers and ranchers. Regardless if you have been farming for three decades or are just getting started, there is something for everyone!

Join AgCountry by registering for an AgFocus Conference!

To register, scan the QR code or visit AgCountry.com/Events.

F O C U S E D O N A G . F O C U S E D O N YO U R O P E R AT I O N .

Your operation is your focus. Agriculture is ours.

Join the team at AgCountry for AgFocus Meetings featuring insights from local staff covering topics that are important to your success.

12/13/23

Devils Lake, ND

12/14/23

Ada, MN

01/10/24

Brandon, MN

01/10/24

Redwood Falls, MN

01/11/24

Minto, ND

01/12/24

Morris, MN

01/16/24

Graceville/Ortonville, MN

01/17/24

Marshfield, WI

01/17/24

Grand Forks, ND

01/18/24

Jamestown, ND

01/18/24

Perham, MN

01/23/24

Hallock, MN

01/24/24

Marshall, MN

01/25/24

Nome, ND

01/25/24

Thief River Falls, MN

01/30/34

Cavalier, ND

01/31/24

Fargo, ND

01/31/24

Bowbells, ND

02/01/24

LaMoure, ND

02/01/24

Bottineau, ND

Planning for next year starts today.

Look forward to the future with an operating loan designed to fit any size farm or ranch. Get the customized financing you need by contacting your local AgCountry office.

AgCountry.com/Locations

02/05/24 Crookston, MN 02/06/24 Hillsboro, ND 02/07/24 Detroit Lakes, MN 02/07/24 Rugby, ND 02/08/24 Fergus Falls, MN 02/08/24 Harvey, ND 02/13/24

Crosby, ND

02/15/24

Minot, ND

02/20/24 Roseau, MN

F O C U S E D O N AG . F O C U S E D O N YO U.

APPRAISALS

Land Values Across AgCountry Territory Written by: Tim Kreft, Chief Appraiser

Real estate values for the year ending June 2023 observed mixed results for AgCountry’s 24 benchmarks across Minnesota, North Dakota, and Wisconsin.

Benchmarks are point-in-time evaluations of different farming operations across our territory that give us an idea of what is happening within the real estate marketplace. Here are the latest results of our benchmark study.

Total increase from $22,807,000 to $26,409,000

15.8% average increase from 2022

In Minnesota, real estate values were mixed with two benchmarks in southern Minnesota showing a recent stabilization. One benchmark decreased in value by 4% while another remained steady. The stabilization in southern Minnesota is comparable to other area Farm Credit association benchmarks. Northern and central Minnesota benchmarks showed stronger increases in values ranging from 22.3% to 48.2%.

Overall, the 10 Minnesota benchmarks increased by an average of 15.8% compared to 2022 market values. The total Minnesota portfolio increased from $22,807,000 to $26,409,000.

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North Dakota shows a range of value increases.

The Red River Valley benchmarks observed modest increases from 4.8% to 13.6%. Western and central North Dakota benchmarks witnessed increases from 15.0% to 66.6%. This region typically lags behind others when following market trends. The increases this year make up for several years with no significant change in market values. The 11 North Dakota benchmarks increased by 23.3% compared to 2022 values. Overall, the North Dakota portfolio increased from $23,103,000 to $28,475,000.

Total increase from $23,103,000 to $28,475,000

23.3% average increase from 2022

APPRAISALS

Central Wisconsin witnessed the most stable markets within AgCountry territory. One benchmark had no increase in value, while the other two benchmarks only increased from 3.3% to 4.2%. Overall, the three central Wisconsin benchmarks averaged an increase of 3.3% as compared to the 2022 values. The Wisconsin portfolio increased from $9,640,000 to $9,990,000.

Total increase from $9,640,000 to $9,990,000

3.3%

average increase from 2022

Overall, the entire AgCountry Benchmark portfolio showed an increase of 16.8% while setting a new high watermark of $64,874,000. The 2023 results show 20 benchmarks reached new high-market values with eight in Minnesota, 11 in North Dakota, and one in Wisconsin.

Investor activity in the market has waned slightly as other investment options provide better returns. Many investors purchasing agricultural real estate are taking advantage of 1031 tax-deferred exchanges. The majority of buyers continue to be owner-operators who are either purchasing rented land from landlords looking to take advantage of the high land values or expanding the size of their operations through new purchases being offered by brokers and auctioneers. The abundance of operator capital is attributed to better-than-average yields and stronger prices on certain commodities.

Recent increases in interest rates have not diminished buyer enthusiasm over the past 12 months. Real estate sales, however, are expected to diminish, and values will weaken over the next 12 to 18 months if interest rates remain at 25-year highs. A drop in commodity prices or yields will weaken values further.

Added protection for your acres.

Get a customized crop insurance policy from a team who knows ag. Ask your AgCountry insurance specialist how ECO and SCO can work for you.

AgCountry.com/Locations AgCountry Farm Credit Services is an equal opportunity provider. In accordance with Federal law and U.S. Department of Agriculture (USDA) civil rights regulations and policies, the USDA, its Agencies, offıces, and employees, and institutions participating in or administering USDA programs are prohibited from discriminating on the basis of race, color, national origin, religion, sex, gender identity (including gender expression), sexual orientation, disability, age, marital status, family/parental status, income derived from a public assistance program, political beliefs, or reprisal or retaliation for prior civil rights activity, in any program or activity conducted or funded by USDA (not all bases apply to all programs).

FO C USE D O N C ROP I NSU R A NC E . FO C USED ON YO U. PREPARE

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AgCountry Endowed Chair of Agribusiness Established at NDSU Through North Dakota State University Foundation

AgCountry Farm Credit Services and the North Dakota State University Foundation are proud to announce the launch of an exciting new initiative, the AgCountry Endowed Chair of Agribusiness in the North Dakota State University Department of Agribusiness and Applied Economics. This visionary position seeks to enhance the University’s commitment to addressing critical issues within the agricultural sector and is complemented by AgCountry’s mission to serve agriculture and rural America.

within the NDSU Department of Agribusiness and Applied Economics dedicated to addressing critical educational and research needs in agribusiness, with a particular emphasis on finance and risk analysis applications that hold paramount importance in the agricultural industry.

The establishment of the AgCountry Endowed Chair of Agribusiness builds on AgCountry’s longstanding commitment and partnership with NDSU to educate the next generation of farmers, ranchers, and agribusinesses. This year marks the 10-year anniversary of the Farm Credit Fellows Program at NDSU–a special undergraduate program in agricultural finance to enhance students’ understanding of the agricultural credit system.

The AgCountry Endowed Chair of Agribusiness is set to become a pillar of the NDSU Department of Agribusiness and Applied Economics. Designed to tackle key challenges in agribusiness finance and risk analysis, this program will be housed within the NDSU Center for Trading and Risk and will leverage the state-of-the-art Commodity Trading Room.

The AgCountry endowment, invested and managed by the NDSU Foundation, will not only bolster existing resources in the field of agribusiness but will also provide invaluable training opportunities for students and stakeholders alike.

L to R: Dr. Greg Lardy, NDSU’s VP of Agriculture Affairs, Dr. David Cook, President of NDSU, Greg Sabolik, AgCountry’s Board Chair, Howard Olson, The primary objective of the AgCountry’s SVP of Government and Public Affairs, and Dr. William Nganje, AgCountry Endowed Chair of NDSU’s Agribusiness and Applied Economics Department Chair.

Agribusiness is to establish a program

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REMINDER! Employers with Employees in Minnesota

Rep. Michelle Fischbach Receives Friend of Farm Credit Award The AgriBank District Farm Credit Council (ADFCC) has recognized U.S. Rep. Michelle Fischbach of Minnesota with its 2023 Friend of Farm Credit Award. Fischbach, a member of the House Ways and Means Committee and former member of the House Agriculture Committee, received the award for her critical leadership to preserve and support the wellbeing of agriculture and rural communities across the country.

“The strong support Representative Fischbach has demonstrated for the Farm Credit mission and investments that support healthy rural communities, particularly as a lead sponsor of the Investing in Rural America Act, makes her a standout amongst her peers,” said Ed Hegland, a farmer from Lac qui Parle County, Minn., and an AgCountry Farm Credit Services board representative on the ADFCC, which he chairs. “We are honored to celebrate her as an AgriBank District Farm Credit Council Friend of Farm Credit and a friend of rural America.”

“I have long admired and supported the work of the Farm Credit System, and I am honored

to receive the 2023 Friend of Farm Credit Award,” said Rep. Fischbach. “I have long been committed to building strong rural communities, and I know that Farm Credit institutions play a critical role in that objective.

That’s why I was proud to introduce the Investing In Rural America Act, which eliminates unnecessary regulatory barriers to capital investment, particularly for critical community facilities like hospitals, childcare centers, and senior care centers. This will attract private sector investment into these kinds of facilities, encouraging future generations to see rural communities as home. I am grateful for the Farm Credit Council’s hard work and look forward to continuing to work side by side with them to better rural America.”

AgCountry Farm Credit Services is one of the local Farm Credit associations that comprise the AgriBank District along with AgriBank. The ADFCC represents Farm Credit farmers and ranchers in a 15-state area from Wyoming to Ohio and Minnesota to Arkansas. About half the nation’s cropland is located within the AgriBank District.

Important Changes to Minnesota Earned Sick and Safe Time Effective January 1, 2024, employers must provide employees in Minnesota earned sick and safe time (ESST) that can be used for a variety of reasons. We encourage our customers to familiarize themselves with and understand these changes to avoid operational or employment issues after the changes go into effect.

Minnesota ESST law updates and requirements are found at dli.mn.gov/sick-leave.

This notice is intended solely for the purpose of conveying information. It is not legal advice and it is not a complete description of the new Minnesota law. It is strongly advised that employers seek legal guidance when undertaking actions in response to any legal updates provided.

Farm Bill Extended

Farm Credit Highlights Priorities During November Fly-In Written by: Howard Olson, SVP Government and Public Affairs In November, the House of Representatives and the Senate passed a short-term Continuing Resolution (CR) to fund the federal government and prevent a government shutdown. After Congress passed the legislation, President Biden signed it into law. The CR provides funding for some government agencies until January 19, 2024, and the rest of the agencies until February 2, 2024, giving the House and Senate more time to pass appropriations bills for the remainder of the fiscal year. If they can’t reach agreement and get the job done, we will have another government shutdown threat and debate as early as mid-January.

and they also stated a strong commitment and desire to complete the Farm Bill in the early part of 2024. That same message was echoed by members of our congressional delegation who serve on the agriculture committee.

The Farm Bill extension provides for the continuation of current nutrition programs, commodity programs including dairy, conservation programs, and crop and livestock insurance programs. The extension also provided funding for several USDA programs that would have lost funding without special consideration and inclusion by the agriculture and appropriations committees.

During the Fly-In we shared the Farm Credit system’s Farm Bill priorities with our Senators and Representatives and heard their priorities and concerns. AgCountry has worked closely with members of our delegation to maintain and strengthen crop insurance, including make higher levels of crop insurance more affordable. Work is also being done to update and improve the counter-cyclical safety net, including increasing reference prices for Price Loss Coverage (PLC) programs.

As with many legislative priorities, challenges may arise due to lack of funding.

AgCountry Board members and staff were in Washington, D.C. in November for the biennial Farm Credit Fly-In. We heard from the House and Senate Ag Committee leadership on Tuesday before the CR vote. They acknowledged the need for a Farm Bill extension,

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Work by the agriculture committees will continue but there are still challenges to getting a Farm Bill signed into law in 2024. For instance, Congress seems to have difficulty passing large, even if bipartisan, must-pass legislation without a looming deadline and the legislative calendar will be somewhat abbreviated next year due to the 2024 election.

We have strong support from members of Congress who represent AgCountry’s service

territory for the Producer Agriculture Credit Enhancement (PACE) bill which would increase the Farm Service Agency’s direct and guaranteed loan program limits. Senator John Hoeven (ND) and Senator Amy Klobuchar (MN) are the lead sponsors of this bill in the Senate. These programs are especially important to young and beginning farmers and ranchers.

Other key legislation discussed during the Fly-In included the Investing in Rural America Act, which would clarify Farm Credit’s authority to finance rural hospitals, nursing homes, and assisted living facilities; and the Farm Credit Administration Independent Authority Act, which states the Farm Credit Administration as the sole and independent regulator of Farm Credit entities, preventing onerous oversight from other agencies.

Overall, passing a Continuing Resolution to prevent a government shutdown and including a Farm Bill extension to continue farm and nutrition programs were good moves in November, especially with the holiday season approaching.

This gives Congress more time to compromise and reach an agreement. We will continue to monitor the progress of the Farm Bill, advocate for our members, and keep you updated. Watch AgCountry.com for Farm Credit insights on the Farm Bill.

Congratulations to the 2024

PHOTO CONTEST WINNERS!

2nd

place winner!

1st

3rd

place winner!

place winner!

First Place: Adrienne Lipinski, Eden Valley, MN Second Place: Preston Lund, Evansville, MN Third Place: Sharon Watson, Buxton, ND Enter AgCountry’s annual photo contest for a chance to be featured in our 2025 calendar! Photos will be accepted until September 1, 2024 at AgCountryPhotos.com.

Holiday Office Hours AgCountry Offices Closed:

December 22, 2023 at Noon December 25, 2023 January 1, 2024

Transaction cut-off is 3:30 pm on 12/29/2023

Take the first step by applying to join AgCountry’s Nominating Committee or Board of Directors.

Visit AgCountry.com/BoardMembers or scan the code below to learn more, or to apply for a governance position.

Application deadline: January 31, 2024

linkedin.com/company/agcountry-farm-credit-services

Do you want to have a leading voice in our cooperative’s initiatives? Do you have experience with operating a farm, ranch, or agribusiness and want to help drive our cooperative’s goals?

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AgCountry Farm Credit Services P.O. Box 6020 Fargo, ND 58108