APRIL 2022
President’s Message
Please remember to vote in 2022!
BRIAN RICKER
You’ll soon be receiving your ballot for the AgCredit director and nominating committee election with an option to vote electronically or by mail. Because AgCredit is a cooperative owned and controlled by its borrowers, it’s essential that we remind everyone why it’s important to take part in the election and remain engaged with your cooperative. It’s my belief that a cooperative’s strength and relevance is directly related to the engagement of not only its board and employees, but also its borrower-owners.
When you receive your ballot, you’ll have the opportunity to vote for three director positions as well as the nominating committee. The nominating committee is composed of 18 AgCredit borrower-owners who are independent of the institution’s board, management and staff. Their responsibility is to identify, evaluate and nominate individuals for service to the AgCredit board of directors and complete a slate of candidates for the next year’s nominating committee. The work of the nominating committee ultimately shapes the makeup of our board of directors, which has the responsibility of governing and 35% overseeing the Association to ensure it is operating in a safe and sound manner. I 30% consider our nominating committee and 25% the nominating process to be integral to 20% the future success of AgCredit. 15% The nominating process begins each June with an initial meeting of the 10% newly elected nominating committee. 1998 In September, the task of identifying candidates for director positions — along with candidates for the nominating committee — begins. AgCredit has been fortunate to have some outstanding nominating committees through the
years, and our most recent committee was also superb. Committee members were successful in securing two candidates for each of the three director regions and identified candidates to replace themselves on the nominating committee. We’re extremely thankful for the time and effort put forth by our nominating committee and are grateful for the candidates who stepped up and agreed to run for either a nominating or director position. I’m going into this detail about what happens behind the scenes to emphasize the importance of our cooperative governance structure and to share the work and effort that goes into it. Several years ago, I attended a meeting of Farm Credit chief executive officers across the country, and I shared with the group that we had a ballot return rate of 12.4%. To my surprise, many of the CEOs in the room were envious of our ballot return rate. What I did not share was that, 15 years earlier, our return rate was 30%. The declining trend bothered me and, in an effort to improve our ballot return numbers, I reported the declining trend in a Leader article in March 2016. As you can see in the following chart below, rates have improved since 2015. I’m hopeful our ballot return trends will continue to remain strong going forward.
Ballot Return Rate
2015
2021
Your board and management team believe your vote is important and needed for the success of your cooperative. Please remember to vote in 2022!”
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PL ANT WITH
PRECISION
PATRONAGE BY THE NUMBERS NEW COMMERCIAL DRIVER’S LICENSE RULES HIT THE ROAD HIGH DEMAND, LOW SUPPLY EARLIEST PLANTING AND PREVENTED PLANTING FACTORS YOUR DREAM HOME JOE LEISER MEMORIAL AGCREDIT, ACA SCHOLARSHIP AROUND AGCREDIT ENTER OUR 2023 CALENDAR PHOTO CONTEST
PRESIDENT - Brian Ricker
PHOTO BY STEVE POLTER
AGCREDIT LEADER APRIL 2022
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Your successful planting season depends on reliable equipment. Invest in your future with fast and reliable financing with Farm Credit EXPRESS. For additional information, contact David White, AgCredit’s relationship manager for Farm Credit Express 740-387-2270 ext 1602
BOARD OF DIRECTORS Dustin Sonnenberg, Chairman David Conrad, Vice Chairman Deborah Johlin-Bach Gary Baldosser Kevin Flanagan Daniel Rengert Scott Schroeder David Stott, Ph.D. Michael Stump Michael Thiel EDITOR - Kayla Laubacher Address changes, questions, comments or requests for copies of our financial reports should be directed to AgCredit, ACA by writing 610 W. Lytle Street, Fostoria, OH 44830, or calling 800-837-3678. Our financial reports can also be obtained on our website: www.agcredit.net IMPORTANT DISCLOSURE We may report information about your account to credit bureaus. Late payments, missed payments, or other defaults on your account may be reflected in your credit report. WHISTLEBLOWER INFORMATION Reports of suspected or actual wrongdoing can be made anonymously and confidentially through the Navex Global Whistleblower hotline or online. All information submitted to Navex Global is taken seriously and investigated thoroughly. WHISTLEBLOWER HOTLINE WITH NAVEX GLOBAL: 1-833-220-9674 (24 hours a day, 7 days a week) WHISTLEBLOWER ONLINE REPORTING: https://www.agcredit.ethicspoint.com We are an Equal Opportunity/Affirmative Action Employer. We recruit, hire, train, and promote individuals without regard to race, religion, color, sex, national origin, age, disability, sexual orientation, parental status, marital status, political affiliation, military service, or any other non-merit based factor.
by the numbers
PATRONAGE, HOW IT WORKS Folks apply for a loan and, if approved, become members of AgCredit, part of a nationwide cooperative.
40%
Members then make payments on their loans, which includes interest on their loans set at market competitive rates.
of accrued interest paid in 2021 returned to eligible members
31 MILLION $
AgCredit makes a profit from the interest members pay on their loans and from the other financial services offered.
The board of directors, which is elected by the members, looks at AgCredit’s financial position.
returned in patronage
P AT
TIONS IBU
consecutive years of returning patronage to our members
NAGE
1.77%
DIST R
35
RO
Upon determining that the financial position is sound, the board can decide to return a portion of AgCredit’s’ profits back to the members.
Members receive patronage checks based on the amount of interest they paid on their loans. This lowers their total cost on the already competitive loans.
average interest rate reduction after patronage
$ 31 Million
AgCredit distributed over $31 million to its members in 2022.
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AGCREDIT LEADER APRIL 2022
PATRONAGE
New commercial driver’s license rules hit the road
BY RYAN CONKLIN, ATTORNEY, WRIGHT & MOORE LAW CO., LPA
AGCREDIT LEADER APRIL 2022
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The use of semi-trucks and trailers on the farm is an essential part of annual operations. Farmers log thousands of hours each year hauling their own products or running commercial freight or trucking side businesses, so changes to trucking laws can be impactful for ag producers. This year is bringing changes to that system of laws. Back in 2012, Congress passed a law called “Moving RYAN CONKLIN Ahead for Progress in the 21st Century Act,” or MAP-21. The rules related to MAP-21 were finalized in 2016, although the bill didn’t go into effect until 2022. MAP-21 includes new requirements for drivers seeking their commercial driver’s licenses (CDLs). In farm circles, changes to driver training requirements have garnered the most attention. Farm drivers without CDLs rushed to complete the training under the old rules, while those who didn’t have their CDLs worried about falling out of compliance, losing their licenses or being placed out of service. Here’s an overview of the new rules and some potential ramifications: First, drivers who don’t have CDL licenses are seeking a new endorsement on an existing license or want to upgrade their license will experience more stringent testing requirements moving forward. These requirements include new federally mandated instructor- and school-provided instruction, which will likely complicate the process of finding a qualified instructor; additional course topics; and more behind-the-wheel testing. The upshot of these new requirements is that there
has been a rush to obtain learning permits or complete training before the new law goes into effect. The new training rules contained a federal compliance date of Feb. 7, but Ohio adopted a March 24 implementation date. What did not change is just as important as what did. For example, the 150mile rule remains intact. This means if you’re a farmer hauling your own crops, goods or supplies within a 150-mile radius of your operation and aren’t operating for-hire, a CDL is still not required. If you have a restricted farm service CDL, which can cover seasonal work for important farm service businesses, MAP-21 did not change your licensure requirements. But what happens if you’re outside of the 150-mile safe harbor of the home farm? The trip could be jeopardized and result in your truck and/or you being placed out of service until a CDL-holding driver arrives to take the wheel. Also, if you haul across state lines, the changes in law makes this a prudent time to check on neighboring state regulations. Even if you’re within the 150-mile limit, trucking your own farm products, federal law may kick in and require a CDL. By many accounts, the new licensure requirements could add thousands in expenses to obtain a CDL. As a nation facing a trucker shortage, this is another difficult barrier to entry. And for farmers looking to move their goods to the best market, it’s another expense that can eat into the bottom line. The Ohio Farm Bureau and Ohio State Extension have published excellent resources on this subject. If you’re interested in learning more, please reach out to your legal counsel or a local farm organization. Stay safe, and stay compliant when hitting the road this year.
High demand, low supply magnify equipment supply chain issues BY DAVID WHITE, FARM CREDIT EXPRESS RELATIONSHIP MANAGER
During TZ’s equipment outlook, representatives summarized 2021 planter sales price and volume. Here’s an executive summary: Values were up and supply was down, just like you’d expect – except for the fourth quarter. December, in particular, was not what they’d predicted as auction volume grew considerably and average values declined. TZ noted that their fourth-quarter data applied to 24-row planters and greater because planters smaller than that were nearly untouched by the equipment inflation they’ve been seeing. DAVID WHITE
So, here’s the take-home message: Planter supply can’t keep up with demand, which presents a huge challenge to farmers who are looking for planters for this spring. This supply chain issue may well result in a prolonged period of higher prices as the backlog builds behind manufacturing lines. Here are two planter trends of note as of Feb. 18: • Prices were up 17%, and volume at auctions was up 30%. • Many dealers are concerned about later planter deliveries. Fall may be a long way off for farmers, but many are already thinking about how they’re going to harvest this year’s crop. Concerned farmers eager to
secure their equipment catapulted combined sale values in December – if they could find them. The supply of quality harvesters was almost half of what it was during the same period in 2020. December is typically a peak month for moving harvesters and a good benchmark for establishing values. It’s unlikely that we’ll see supply increase and values drop anytime soon. TZ looked at over 400 harvesters that were less than 20 years old and sold only in December 2020 and 2021 auctions for more than $20,000. In December 2020, the average sale price was $106,000. Compare that to $129,000 a year later. That’s a 22% increase, and the 2021 models also had an extra 173 separator hours on average. With 2021 being a highly profitable farming year for most farmers and more cash on hand, creating an incentive to reduce taxable income, values were driven up with an already short supply of available harvesters contributing. TZ said the two are inextricably linked, with the former making the latter even more challenging. Going forward, the profitability of farmers in 2022 will be challenging, largely thanks to soaring input costs, including equipment. Other metrics of note from TZ: • There’s high demand for tractors with 300-horsepower or higher. Prices were up 6% as of February 2022 due to low supply. • Prices will continue to increase in 2022. • One CEO of a major equipment manufacturer said 2022 will continue to see a protracted supply issue.
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AGCREDIT LEADER APRIL 2022
I made my annual pilgrimage in mid-February to the National Farm Machinery Show in Louisville. I previously attended the show to interact with farm equipment manufacturers and sales reps as well as attend Machinery Pete’s presentation. This year, I also listened to Tractor Zoom’s (TZ) presentation, hosted by Iron Comps.
Crop Insurance Update
Earliest planting and prevented planting factors for crop insurance BY CALEB DOUCE, DOUCE AGENCY, LLC
“It is only the farmer who faithfully plants seeds in the spring who reaps a harvest in the autumn.” – B.C. Forbes, founder of Forbes magazine
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AGCREDIT LEADER APRIL 2022
CALEB DOUCE
It’s spring, so that means it’s time to get back into the fields and begin planting. I’m hopeful that Mother Nature will cooperate, and the weather will be great. As we enter another growing season, here are some tips to get you started on the right foot.
Early Planting Dates Early planting dates and replant coverage availability are two things to keep in mind. For corn, April 10 is the earliest date to plant for replant coverage. The earliest plant date for soybeans is April 24. Cover Crops
another person. This means that there’s no longer a Nov. 1 date for cover crops to be used for haying, grazing or cutting for silage, haylage or baleage following preventive planting coverage guidelines. You can now do this at any time. The only thing you can’t do is harvest a cover crop for grain or seed following prevent plant. • Area Risk Protection Insurance and CCIP basic provisions – The meaning of “cover crop” was changed to allow special provisions for further specifications about cover crops. The U.S. Dept. of Agriculture’s Risk Management Agency has already done this with its “corn as a cover crop” statement, which was updated for 2022 to read, “Corn planted on acreage following a crop that has been prevented from being planted will not be considered a cover crop and will be considered a crop planted for harvest.” This means that corn is no longer an approved cover crop per prevented planting provisions. Despite its many challenges, 2021 was one of the best years on record for many producers, so let’s hope 2022 proves to be even better!
Cover crops are planted in the fall to help maintain the integrity of the soil. With that said, here are three important points to consider: • Ohio is within Zone 4 as determined by the Natural Resources Conservation Service’s Cover Crop Termination Guidelines. What does that mean to you as a producer? That your cover crop must be terminated before your spring crops emerge. • Common Crop Insurance Policy (CCIP) basic provisions – Section 15 (g)(3) was revised to accommodate a change made last year to rescind the Nov. 1 date related to haying, grazing or cutting for silage, haylage or baleage of a cover crop. A prevented planting payment reduction will only apply if a cover crop is harvested at any time for grain or seed by producers or
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AGCREDIT LEADER APRIL 2022
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Joe Leiser Memorial AgCredit, ACA SCHOLARSHIP Up to five scholarships ranging from $1,000-$3,000 will be awarded for the 2022-2023 school year. The scholarship selection committee reserves the right to reduce or expand the number of scholarships awarded based upon the number of eligible and complete applications received. To be eligible, applicants must be an immediate family member (dependent) of a voting stockholder of AgCredit, ACA with a current loan. At the time of application the student must be a graduating high school senior planning to attend a post-secondary school majoring in an agriculture related subject or be attending a post-secondary school majoring in an agriculture related subject. The selection committee will consist of three current board members of AgCredit, ACA. They will review all complete applications and choose the recipients. No interviews will be conducted. The process will be completed by July 31, 2022.
Other Criteria: •
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•
AGCREDIT LEADER APRIL 2022
•
•
Children of current employees or directors of AgCredit, ACA are not eligible for this scholarship. Previous recipients of the scholarship are not eligible to re-apply. Previous applicants (who have not received scholarship funds) may apply every year they are eligible. The scholarship is to be used to pay education-related expenses and will be issued in the form of a joint check with the school.
Application Requirements: • •
Complete the online application at AgCredit.net/scholarship Current Official Transcript, including most recent term, must be mailed to: AgCredit, Attn: Karen Welter, 610 W. Lytle Street, Fostoria, OH 44830.
•
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o In lieu of an official transcript, an Advising Report AND copies of grade reports from each term attended will be accepted. Two letters of recommendation from sources at the applicants discretion must be mailed to: AgCredit, Attn: Karen Welter, 610 W. Lytle Street, Fostoria, OH 44830 or recommendation sources can email letters to kwelter@agcredit.net A word document or PDF containing no more than four letter sized pages with information from the past two years answering the questions below must be uploaded with the online application at AgCredit.net/scholarship: o A resume including the following items: 1. Your past and present cocurricular activities including offices and extent of involvement.
2.
Your work or experience or other commitments that may involve a large amount of time. 3. Your scholastic accomplishments. (Make a definite distinction among the three categories above) o From your resume, pick one activity that has benefited you the most and explain. o Why have you decided on an agriculture program? o Tell us more about yourself and explain how this scholarship would benefit you. Application Deadline is June 30, 2022. Online application must be submitted by 11:59pm on June 30, 2022 and supporting materials that are mailed must be postmarked by June 21, 2022.
Around AgCredit
Stay Connected with us! Email marketing@agcredit.net to join our email list!
New EmployeE
Retirements We thank you all for your years of dedication to AgCredit and our members. We wish you the best in your retirement!
JOHN ORIANS
PAULA ANATRA
John Orians, Executive Account Officer in Tiffin, retired February 1 after 41 years of service.
Paula Anatra, Legal Administrative Assistant in Fostoria, retired February 1 after 9 years of service.
Trevor Rieman joined the Residential Lending Department as a Mortgage Loan Originator in December.
BARNEY KREILICK Barney Kreilick, Loan Processor in our Residential Lending Department, retired March 1 after 4 years of service.
TREVOR RIEMAN
Welcome Interns!
Years of Service Awards JANUARY-APRIL YEARS
ARIELLE BERLETICH
10
YEARS
JESSIE CHAMBERLAIN
HOLLY ZIEBOLD
JUSTIN REICHLEY
15
CORA DORMAN
Noah Platzke joined the Appraisal Department in December as an intern. He is a senior at Bowling Green State University majoring in Finance.
Cora Dorman joined the Mt. Gilead team as an intern in January. She is a senior at The Ohio State University studying Agribusiness and Applied Economics.
20
YEARS
STEVEN MCCARTNEY
MICHAEL SWICK
NOAH PLATZKE
YEARS
TAMMY GLICK
“The farmer is the only man in our economy who buys everything at retail, sells everything at wholesale, and pays the freight both ways.” —John F. Kennedy
STACEY DVORAK
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HUNTER REED
DEVAN DULIN
Hunter Reed joined AgCredit as an intern for the Risk Management and Audit Department in January. He is a senior at the University of Findlay studying Finance and Economics.
Devan Dulin joined the Kenton team as an intern in February. He is a senior at Kenton High School and is working at AgCredit as part of his Capstone Project.
AGCREDIT LEADER APRIL 2022
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Around AgCredit Mission Fund We are now accepting applications for the 2022 AgCredit Mission Fund grant program. We will be accepting applications until August 31, 2022. Visit AgCredit. net to read the guidelines and complete your application. Organizations can apply for up to $15,000.00 each year in one of the four focus areas. • Education • Technology
• Environment • Quality of Rural Life
Since 2018, we’ve awarded $344,000.00 to 34 deserving organizations. Yours could be next—apply today!
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Calendar
AGCREDIT LEADER APRIL 2022
Offices Closed April 15 Good Friday May 30 Memorial Day June 20 Junteenth
July 4 Independence Day
Stay Connected with us! Email marketing@agcredit.net to join our email list!
ENTER OUR 2023 CALENDAR PHOTO CONTEST! GIVE US YOUR BEST SHOT! Enter up to five photos by completing the online entry form. Contest entry period is now through June 30, 2022. Winners will be notified August 1.
AgCredit.net
2023 Calendar Contest Guidelines:
Cash Prizes Awarded:
Ideas include: large and small farm operations, country kids, farm animals, flowers, outdoor landscape scenes, nature scenes, harvesting, sunrises, sunsets, barns, silos, wildlife, classic and/or antique farm equipment, and daily farm life.
1st Place—$100
The contest is open to all creative work—you don’t have to limit yourself to the ideas above. You may submit new ideas or any combination of the above. • Who is eligible: Members, employees and their family members are invited to enter our 2023 Calendar Photo Contest. • Photos must be taken within our 18-county AgCredit territory. • Photos must be submitted by the person who took the photos, and each person is eligible for a maximum of two prizes. • All photos must be at least 1 MB in size. • Orientation of photos must be horizontal (landscape). • Please limit your entries to five photos. We will not accept more than five photos per person. • Deadline for submission is June 30, 2022. • All photos, used or unused, become the property of AgCredit.
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2nd Place—$75 3rd Place—$50 $25 prize to each of the other nine winning photos. Photos featured on the back will receive a calendar. Winning entries will be announced and featured in the 2023 AgCredit Calendar, the AgCredit Leader, social media, and our website. To submit an entry, go to AgCredit.net. If you have any questions, please contact the marketing department at marketing@agcredit.net
AGCREDIT LEADER APRIL 2022
Valerie Wallis, featured in our 2022 calendar
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