Thank
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We’re proud to work alongside hard-working pork producers, processors and others every day. As the swine industry and agriculture continues to evolve, we’re here for you.
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CULTIVATE
Volume 8, Issue 3
Fall 2024
EDITORIAL STAFF
Anna Vangsness, Editor
Nora Nolden, Assistant Editor
Chastity Valvick, Assistant Editor
Annie Lauber, Contributing Writer
Terri Poburka, Designer
DIRECTORS
Ashley Ahl Merrillan, Wis.
Rod Bosma Rushmore, Minn.
Ann Broome Austin, Texas
Allyn Buhrow Ashton, Ill.
Mark Cade Westby, Wis.
Dan Erickson Alden, Minn.
Larry Fischer Sleepy Eye, Minn.
Dale Holmgren Mankato, Minn.
Sarah Jansen Menasha, Wis.
Dave Peters Manteno, Ill.
Greg Pollesch Oshkosh, Wis.
Daniel Scheider Freeport, Ill.
Tracy Travis Cambridge, Wis.
Kimberly Wedig Darlington, Wis.
Stephanie Wise Joliet, Ill.
Cultivate is a publication of Compeer Financial®, ACA. Compeer Financial exists to champion the hopes and dreams of rural America. This publication is copyrighted in its entirety. Cultivate is published by Compeer Financial, 2600 Jenny Wren Trail, PO Box 810, Sun Prairie, WI 53590.
Please send address changes to Compeer Financial, Attn: Cultivate Magazine, 2600 Jenny Wren Trail, PO Box 810, Sun Prairie, WI 53590 or call (844) 426-6733.
Compeer Financial, ACA is an Equal Opportunity Employer, Lender and Provider. Equal Credit Opportunity Lender. Compeer Financial is a registered trademark of Compeer Financial, ACA. ©2024 All rights reserved.
6 Building a Barndominium Dream Wisconsin Couple Enjoys Newly Built Barndominium Home
8 Four Generations Strong The Resilient Legacy of Cowser Inc.
10 Arctic Cold Storage Helps Producers Keep Their Cool
14 Understanding Farmland Values Farmland Values Stable Despite Rising Interest Rates and Changing Market Conditions
16 Strategic Tax Planning and Recordkeeping for a Thriving Farm Business
18 A Will Does Not Make a Transition Plan Is Your Farm Ready to Successfully Transition to the Next Generation?
20 Building Strong Teams
Board Member Daniel Scheider’s Key to Farm Success
4 CEO Message 22 What’s New at Compeer?
Cover: As harvest season approaches, a brilliant fall sunset paints the sky in golden hues.
Cultivate is brought to you by Compeer Financial. This publication’s name represents our cooperative’s commitment to growing long-term relationships with our member-owners and championing the hopes and dreams of rural America. Comments or suggestions for future issues can be sent to Compeer-CommunicationsTeam@compeer.com.
A Great Team COMPEER AND OUR CLIENTS ARE STEPPING UP TO THE PLATE FOR FALL HARVEST
“We look forward to many more years of hitting home runs together.”
In my younger days, I played baseball in high school and college and loved every minute of it — the satisfying crack of the bat connecting with the ball, the thrill of a night game under stadium lights and the camaraderie in the dugout. While playing baseball isn’t on my activity roster these days, I still enjoy watching a good game with my family and rooting for our favorite teams. As summer slowly transitions to fall, not only do we gear up for the ultimate baseball game with the World Series, but we also step up to the plate for fall harvest.
I can’t help but think about the parallels between baseball and farming. Both require strategy, teamwork and a good deal of patience. This summer, many of our clients have experienced a variety of weather challenges. From extreme rainfall and flooding to wind events and more, Mother Nature certainly lobbed several curveballs our way. It’s an inevitable part of agriculture, and while we won’t understand the full impacts until harvest, we’re hopeful our clients end up hitting it out of the park this harvest season.
At Compeer Financial, we’re not just here to watch from the dugout; we’re playing the game with you, championing our clients as you aim for your hard work to translate into success. As a cooperative, it’s important that our member-owners share in Compeer’s success, and this year we’re proud to be returning $185 million in patronage back to our member-owners, including our recent August payout of $133 million. For the Compeer team, every time we deliver these patronage payments to you, it feels like hitting a grand slam — it’s the perfect demonstration of Compeer’s strength and commitment to our clients.
Patronage returns are more than just a financial gesture; they’re a symbol of our deeprooted partnership. Patronage represents the trust you place in us and our dedication to ensuring that trust and partnership are rewarded. None of this would be possible without the strategic vision and steadfast dedication of our Board of Directors.
I think of our Board as Compeer’s coaching staff. They bring diverse perspectives and a wealth of experience from various sectors of agriculture, guiding the organization into the future. Whether it’s grain, dairy, livestock or specialty crops, our directors are dedicated to establishing a robust playbook of insights and strategies to serve our clients in agriculture and rural America, and to keep Compeer relevant now and well into the future. Their leadership ensures we stay true to our mission while adapting to the ever-changing landscape. I want to extend my heartfelt thanks to each of our Board members for their service, their commitment to representing our member-owners’ voices and their commitment to ensuring Compeer remains a beacon of stability and innovation.
Compeer Financial Board of Directors
In the boardroom, risk is always a topic of discussion and something Board members and leadership in the organization continually examine. In our current environment, managing risk is more important than ever. At Compeer, we constantly assess the field and adjust our strategies to mitigate risks, guided by our Board’s expertise. It’s crucial that our clients also take risk management seriously and prepare for the future. Whether it’s market volatility, changing regulations or unforeseen challenges, staying proactive and informed can make all the difference, just like anticipating a pitcher’s next move can turn the game in your favor. I encourage all of our clients to have conversations with their team at Compeer to talk about risk and get ideas for bolstering your risk management practices.
Knowing your numbers and preparing for the future are important parts of assessing risk. On page 16 of this issue, check out some ideas from the Compeer team on recordkeeping and building your strategies around tax planning. We have a strong lineup of other stories to share in this issue; on page 10, learn how Arctic Cold Storage, a Minnesota company, is aiding the food supply chain with its cold storage solutions. Meet the Ravns on page 6 and discover how their partnership with Compeer made their barndominium dreams come true. And hear from Compeer Financial Board Member Dan Scheider on page 20 to find out how he approaches empowering those around him on his dairy farm in northern Illinois.
It won’t be long before the combines roll into the fields and harvest work begins. The entire team at Compeer wishes you a safe and bountiful harvest season. It’s an honor to serve you, and we look forward to many more years of hitting home runs together.
Jase Wagner, President and CEO
Front: Kimberly Wedig, Stephanie Wise, Dan Erickson, Dale Holmgren Back: Allyn Buhrow, Mark Cade, Greg Pollesch, Daniel Scheider, Ashley Ahl, Rod Bosma, Sarah Jansen, Dave Peters, Ann Broome, Tracy Travis Not pictured: Larry Fischer.
Building a BARNDOMINIUM DREAM
NEW HOLSTEIN, Wis. — Andrew and Christy Ravn sit side by side on their rocking chairs, overlooking an idyllic pond where their three dogs retrieve sticks before shaking their fur dry. From this vantage point, the New Holstein residents watch hummingbirds and pheasants while waiting for deer and turkeys to make their daily appearance.
It took the duo more than a year to find the perfect property where they could build their unique forever home. With help from Compeer Financial Loan Officer Jessica Held, they purchased a 40-acre lot in 2021 and began planning their build. When it was time to break ground, the Ravns were living on their new property in an RV, eagerly waiting to start the construction process.
BUILDING THE BARNDOMINIUM
Rather than a standard stick-built home, the Ravns opted to build a barndominium — a slab-on-grade metal structure with a large shop attached to it.
“Years ago, before homes like this had a name, I wanted to build a large shop with living quarters,” said Andrew. “I shared that dream with Christy and, once our kids moved out, we said, ‘let’s do this.’”
In early 2022, as their foundation was being poured, the Ravns faced a major setback. Their construction loan was pulled at the last minute by another financial institution.
“We’re finally warm, but we also feel safe and secure in this home. We love it here.” — Christy Ravn
“Andrew and Christy were told the barndominium was over-improved for the area and they weren’t able to get the loan,” explained Held. “I had worked with the Ravns’ previously on their land purchase, and when they reached out for help on this project, we were able to take action immediately and by the end of May, we were ready to close on their construction loan.”
With Held’s expertise and Compeer’s quick help, the Ravns moved forward with their home construction, breaking ground in April 2022 and moving in seven months later.
“When we initially bought our acreage, Jessica and Compeer made financing extremely easy,” noted Andrew. “She understood our plan and communicated well throughout the process. We found other financial institutions don’t want to deal with acreage or vacant land, but Compeer excels at it.”
A DREAM HOME
The Ravns’ barndominium consists of 2,500 square feet of living space with three bedrooms and 3½ baths. Their open-concept home has vaulted ceilings, a fireplace and Amish-built custom cabinetry. A 3,750-square-foot garage and a 1,000-squarefoot loft are attached to their home.
“We started out living on this property in our RV and now we’re home,” said Christy with a smile. “We’re finally warm, but we also feel safe and secure in this home. We love it here.”
From paint and trim to the doors and the direction their home faces, the Ravns had a hand in every design decision. Their three dogs have settled comfortably into their outdoor/indoor temperature-controlled kennels, and the Ravns have an ideal location to store their ATV, boat and animal feed. They also have plenty of space to host friends and family for get-togethers.
“My favorite part of working with the Ravns is their enthusiasm for rural life,” explained Held. “They had a passion for what they were building, and it was great to help them reach their goals.”
In the future, the Ravns plan to convert some of their acreage to be a part of the U.S. Department of Agriculture’s Environmental Quality Incentives Program, but for now, they’re relishing the peace and quiet of their home and land.
“I love every part of our barndominium,” concluded Andrew. “It took a lot of patience, but if you have a solid plan and good people to work with, you can execute your idea.”
Opposite page: Andrew and Christy Ravn stand in front of their newly-built barndominium in New Holstein, Wis.
Right, top to bottom: The Ravns built a barndominium, a slab-on-grade metal structure with a large shop attached to it.
The barndominium has 2,500 square feet of living space, three bedrooms and 3½ baths.
The Ravns’ open-concept home features Amishbuilt custom cabinetry and vaulted ceilings.
Compeer Financial Loan Officer Jessica Held assisted Andrew and Christy Ravn with the purchase of their 40-acre lot and barndominium construction loan.
The Ravns enjoy watching pheasants, deer and turkey roam their land.
FOUR GENERATIONS STRONG
The Resilient Legacy of Cowser Inc.
BRADFORD, Ill. — Established by Delbert Cowser in the 1930s near Glasford, Ill., Cowser Inc. has grown into a cornerstone of agricultural excellence. This family-run farm, recognized as the 2020 Illinois Pork Producers Association Farm Family of the Year, is now managed by seven dedicated family members: brothers Steve, Marc, Andy and Darin, and the next generation, Alan, Seth and Cheryl Cowser-Walsh. Their intergenerational effort has ensured that the farm remains a thriving enterprise in the heart of Illinois.
A LEGACY OF FAMILY FARMING
The Cowser family has been farming for four generations, with roots dating back to 1932. Delbert Cowser started with an 80-acre farm, which expanded to 300 acres before relocating to the Elmore Stock Farm in 1951. Today, the family continues to raise pigs — a tradition from the start. In 1999, they acquired a breedto-wean barn, currently weaning about 1,200 pigs weekly, sold to Land O’Lakes. Alongside pig farming, the Cowsers grow
corn, soybeans and hay, and conduct custom farming. They also maintain a small cow-calf herd, adding diversification to the operation.
Since acquiring the sow farm, Cowser Inc. has adapted to modern farming demands with advanced biosecurity measures, including mandatory showers for all individuals entering and exiting the farm, a fumigation room for supplies, dedicated transportation equipment and a truck wash to minimize external traffic. Such stringent protocols help ensure the health and safety of the family’s livestock operations.
“We take biosecurity very seriously,” explained Cheryl Cowser-Walsh. “It’s crucial to keep our animals healthy and our operations running smoothly.”
CENTERING COMMUNITY
Beyond the barns, the Cowsers are active members of the Peoria County Farm Bureau and various local committees, contributing to agricultural education
through programs like Agriculture in the Classroom. Cheryl, affectionately known as “The Peoria County Pig Lady,” currently serves as president on the Illinois Pork Producers Association board.
“Being involved in these organizations helps us advocate for the agricultural community and educate the next generation,” she said.
COLLABORATION AND ADAPTATION
Working alongside her father, uncles, brother and cousin, Cheryl finds immense value in the collaborative nature of their farm. Each family member has carved out a niche based on their strengths, helping the farm succeed through teamwork and mutual support. Weekly conference calls help the family coordinate their efforts, plan
for the week ahead and adapt to the unpredictable nature of farming.
For Cheryl, farming is more than a profession — it’s a lifelong passion. The ever-changing nature of farm work, from office tasks to hands-on labor with livestock and crops, keeps her engaged and motivated. Witnessing the tangible results of her efforts and contributing to feeding the world solidify her commitment to the agricultural lifestyle.
“I’ve been around this my whole life,” she said. “I enjoy being outside. You can see the fruits of your labor and you can see progress happening.”
The Cowser family’s partnership with Compeer Financial has been a longstanding one, initiated by Cheryl’s grandfather, Rodger, and uncle, Steve. Cheryl noted that Compeer’s
understanding of agriculture, willingness to learn and the cooperative’s guidance through both challenging and prosperous times has made Compeer an invaluable partner for the Cowsers.
“One of the biggest things I like about Compeer is they understand our business, they’re willing to learn about our business and they help guide us,” she said. “They’ve been there with us in some pretty rough times, and they’ve been there with us for the good times, too.”
Cowser Inc. stands as a testament to the power of family, tradition and adaptation in agriculture. With each generation building on the legacy of the previous one, the Cowsers continue to thrive, contribute to their community and advocate for the future of farming.
Opposite page: Cowser Inc., of Bradford, Ill., dates back to 1932. The thriving enterprise continues to raise pigs, weaning about 1,200 pigs weekly. The Cowsers grow corn, soybeans and hay and conduct custom farming in addition to raising pigs.
Below: Having weekly conference calls and highlighting each family member’s strengths ensure the farm’s success through teamwork. Cheryl and her brother Alan work closely with their dad, uncles and cousins to make Cowser Inc. a successful operation.
ARCTIC COLD STORAGE Helps
Producers Keep Their Cool
ST. CLOUD, Minn. — A central Minnesota business is aiding the food chain by making its cold storage facility an integral stop from farm to table.
Arctic Cold Storage, a transportation and logistics center in St. Cloud, receives fresh and frozen food deliveries before distribution. The company can switch from freezer to cooler in as little as five days — an impressive feat for a warehouse covering 275,000 square feet of refrigeration space and managing nearly 150 trucks daily.
Arctic Cold Storage is a complex business operation that works with companies of all sizes, from small businesses to Fortune 500 companies, to store their products after they leave the processing plant but before they reach grocery store shelves or restaurant kitchens. The team ensures all products are maintained at the required temperatures, meticulously recording all expiration dates to account for travel time and rotating stock out of storage every seven to 14 days.
The business was founded in the 1990s by Jeff and Julie Condon, although Jeff’s parents started a version of the company, selling popcorn from a liquor store basement in the 1950s.
Today, the company has expanded from humble beginnings to employing 125 people and storing 28,000 pallets of product.
EMPLOYEES TURNED FAMILY
“What keeps our employees here is the family environment,” said Jessica Jones, human resources manager at Arctic Cold Storage. “Our team is our greatest asset.”
Longtime employee and general manager Brian Kunkel, who has been with the company since 2005, echoed Jones’ statement.
“The family gets to know you, and it’s a great feeling to come to work and be part of a team,” noted Kunkel. “Safety is number one at Arctic Cold Storage. Knowing that I can come here and be safe while I’m working is really important.”
Kunkel adds that the Condons have invested in sophisticated technologies to improve process flows and efficiency. Arctic Cold Storage has integrated significant technology, including advanced warehouse and dock management systems, and robotic forklifts that assist in unloading trucks. He emphasizes that staying ahead of the tech curve is crucial in their industry, and they consistently strive to maintain this edge.
Continued on page 12
Top right: Jessica Jones, Julie Condon, Compeer Financial VP of Food and Agribusiness Troy Mostaert and Jeff Condon. Arctic Cold has partnered with Compeer since 2005.
Bottom right: Robotic forklifts assist in unloading trucks at Arctic Cold Storage.
Opposite page: L-R: Arctic Cold Storage team members Julie Condon, Jeff Condon, Jay Condon, Ben Condon and Jessica Jones. Left: Ben Condon scans a food delivery for distribution.
Continued from page 11
Jones, the Condons’ oldest daughter, works alongside her brother Jay Condon, vice president of operations, who attributes the company’s decades of success to its employees and industry partners.
“Being a smaller organization allows us to put technology in place faster than some other cold storage facilities,” Jay said.
“To be successful in this industry, you need a good team around you and good financial partners.”
IMPORTANCE OF FINANCIAL PARTNERSHIPS
Arctic Cold Storage has partnered with Compeer Financial since 2005. Troy Mostaert, VP of food and agribusiness at Compeer says the cooperative understands the intricacies of agribusiness and has an experienced team that can provide unique support and perspectives.
“Compeer has been very good to us,” said Jeff Condon, president at Arctic Cold Storage. “They’ve always listened and gone the extra step.”
As he looks back over his tenure with Arctic Cold Storage, Jeff says the company’s success wouldn’t be possible without the many individuals it takes to run the business.
“Our business is growing quite nicely, and we’ve been blessed with great partnerships and customers along the way.” — Jeff Condon
“Our business is growing quite nicely, and we’ve been blessed with great partnerships and customers along the way,” he said. “People don’t realize how important the agricultural industry is. The grocery wholesalers and the truck drivers . . . without these people, we wouldn’t be eating or going to restaurants like we do now. This is an incredibly important industry.”
Arctic Cold Storage is set to expand its product drop lot, and Jeff hopes to see the building double in size in the future.
“We’ve worked hard to put this company together, but it wasn’t just the Condon family,” he said. “It was a lot of people. I love to see people grow, and our team is growing stronger every day.”
Above left: Jesse Theisen is one of Arctic Cold Storage’s 125 employees. Middle top: Julie and Jeff Condon founded Arctic Cold Storage in the 1990s. Middle bottom: Mike Shay utilizes Arctic Cold Storage’s advanced dock management system.
Above right: Located in St. Cloud, Minn., Arctic Cold Storage is a 275,000 square-foot transportation and logistics center that receives fresh and frozen food deliveries before distribution.
Understanding FARMLAND VALUES
Farmland Values Stable Despite Rising Interest Rates and Changing Market Conditions
Farmland values have been a hot topic in recent years, with significant changes driven by various economic factors. Adam Schmidt, director of appraisal at Compeer Financial, provides a clear analysis of these trends and what they might mean for the future.
Schmidt says to understand the current farmland market, it’s important to look back two to three years. During this time, farmland values hit record levels due to low interest rates, high commodity prices, government payments and high inflation. These factors created strong demand for farmland, pushing prices up.
More recently, several market conditions have shifted. Commodity prices and row-crop farming profitability have dropped, and interest rates have risen significantly. The Federal Reserve’s rate hikes from March 2022 to July 2023 saw a 500-basis point increase in the Fed funds rate. This rise took long-term fixed rates from 3% to 4% to over 8%.
“Normally, such an increase in interest rates would lead to a drop in land values because financing land purchases becomes more expensive, and investors look for alternative investments with a more attractive return,” explained Schmidt.
STABILITY DESPITE CHALLENGES
Despite these changes, the land market has remained relatively stable. Schmidt says one key reason is the strong profitability in the farm sector over recent years, which has led to excess cash or working capital among producers.
“Producers have been looking to reinvest cash in land,” he explained. “Some of them haven’t necessarily needed to finance the whole purchase or paid cash.”
This financial cushion has allowed producers to reinvest in land without needing to finance the entire purchase, insulating the market from the full impact of higher interest rates thus far.
Another factor contributing to this stability is the reduced supply of farmland for sale. Data from Compeer shows a significant drop in transactions and acres sold from 2020-2022 to 2023-2024.
“We’re down over 1,800 transactions and around 180,000 acres sold compared to previous years,” noted Schmidt.
With fewer transactions and less land available, the reduced supply has helped keep prices stable despite the economic pressures.
TRENDS IN FARMLAND TYPES
When examining the three states in Compeer’s territory — Illinois, Minnesota and Wisconsin — some unique trends emerge. Highly productive land has maintained its value better than marginal quality land.
“Certainly, your highly productive land has remained more in demand,” said Schmidt. “I think farmers see that as an easier way to get a return or maintain higher production levels.”
ADAM SCHMIDT Director of Appraisal
Conversely, marginal quality land has seen reduced demand or more instances of “no sales” due to fewer interested buyers.
“This is a typical pattern seen in a land market in transition,” noted Schmidt.
LESSONS FROM HISTORY
Historical data can offer insights into what the future might hold for farmland values. Schmidt references Compeer’s benchmark farm data, which tracks land values across the cooperative’s 144-county territory. This data indicates that increases or decreases in land values tend to follow commodity prices and overall sector profitability. For instance, from 2011-2013, land values increased significantly due to high commodity prices and profitability. However, as commodity prices dropped by 2014, land values gradually decreased through 2019, a total of 15% to 20%.
Schmidt explained that applying this historical perspective to the current market, we might expect a similar gradual decrease in land values if commodity prices remain at a lower level for a sustained period. However, this adjustment is likely to
be gradual, reflecting the resilience of farmland values even during periods of economic volatility.
“When you think about where we’re at today, profitability in the ag sector, certainly the row crop sector, has seen a significant reduction,” said Schmidt.
Despite potential softening, farmland remains a sound investment. The volatility in commodity markets hasn’t led to drastic drops in land values in recent history, demonstrating the market’s resilience. Farmland continues to be seen as a valuable asset, partly because the supply is finite, and land lost to other uses further limits availability.
Schmidt emphasized, “There’s an old adage — they’re not making any more of it.”
LOOKING FORWARD
As we navigate this period of potential transition, several factors will play a crucial role in determining the future of farmland values. Interest rates, commodity prices and global market conditions all will influence the market. Investors and farmers alike should stay informed and consider professional advice to make the best decisions for their circumstances.
“It’s very important during times like this to make sure you understand what’s going on in the market and particularly your local market,” advised Schmidt.
While recent changes in interest rates and commodity prices present challenges, the farmland market’s resilience and the limited supply of available land suggest that values will adjust gradually, continuing to offer a stable investment opportunity.
STRATEGIC TAX PLANNING AND RECORDKEEPING for a Thriving Farm Business
Properly managing your taxes and records can lead to significant financial benefits, compliance with regulations and long-term sustainability for your farming operation. Daniel Coulthard and Eric Schmidt, managers of tax and accounting at Compeer Financial, share their insights into challenges and best practices as we approach 2025.
Looking ahead, several key trends and developments are anticipated in tax planning for farmers in the Midwest.
Schmidt expects that a tax bill before Congress will introduce changes, and he highlights the importance of making estimated payments throughout the year to adapt to end-of-year tax modifications. This proactive approach provides farmers more time to adjust their strategies.
Coulthard adds that changes in gift value regulations are also a concern, especially with today’s high value of land.
“Potential reductions in the lifetime estate tax exemption could prompt increased gifting to avoid estate laws,” explained Coulthard.
Both Schmidt and Coulthard emphasize the difficulty of planning for retroactive tax law changes, which could complicate financial management for farmers. Additionally, developments like advanced earned income credits in certain states, including Minnesota, and inflationary adjustments in Social Security and Medicare rates will require careful monitoring. These changes can significantly impact tax planning strategies, especially for those near income thresholds. Staying informed and flexible will be crucial for effective tax planning in the evolving landscape.
Modern technology offers powerful tools to streamline recordkeeping and tax planning to maintain accurate records. By using software to leverage
technology, Schmidt says farmers can make more informed decisions, reduce the likelihood of errors and save valuable time.
“Many farmers already use advanced technology like GPS and automated machinery in their operations, and they should apply the same approach to financial management,” said Coulthard.
Effective tax planning is not just about managing the present but also about planning for the future. Succession planning and estate taxes are complex issues that require prior and thorough planning.
“Start the transition process early, as it often takes many years to fully implement a successful plan,” advised Schmidt. “This proactive approach can help manage taxable income and ensure a smooth transition to the next generation. This proactive approach can help manage taxable income from yearto-year and eventually ensure a smooth transition to the next generation.”
For Compeer clients and all farmers, understanding and implementing effective tax planning and recordkeeping are essential for financial stability and growth. By staying informed about tax laws, leveraging technology and planning for the future, you can help ensure your operation is both profitable and sustainable.
Schmidt advises clients to spend their time on the things that can have the most impact on in their day-to-day operations, and let the experts handle the complex aspects of tax planning and accounting. Consulting your relationship manager can help you learn more about Compeer’s tax assistance options.
DANIEL COULTHARD Manager Tax and Accounting
ERIC SCHMIDT Manager Tax and Accounting
A Will Does Not Make a TRANSITION PLAN
Is Your Farm Ready to Successfully Transition to the Next Generation?
A common misconception about transition planning for a family farm is that having an estate plan is enough to ensure a smooth transfer of assets and responsibilities to the next generation. But an estate plan is only part of a successful transition plan, said Lisa Quist, regional vice president for the Land as Your Legacy program at Nationwide.
Understanding the need for proactive communication within a farm family regarding transition planning, Compeer partnered with Quist and Nationwide for a two-part
virtual webinar focused on transition planning. During her presentation, Quist noted that an estate plan addresses the distribution of assets after death, but a transition plan includes a comprehensive strategy to prepare the farm for future success while the current generation is still involved.
Quist said this is more important than ever because, during the next 20 years, an estimated 70% of farmland will transfer ownership, with only 30% of that land estimated to remain as land for family farm operations.
“A successful transition plan requires thoughtful consideration of the hopes, dreams and goals of both the current and future generations,” pointed out Quist.
Often, an equal division of assets among the next generation can lead to disagreements and financial difficulties, especially when only one family member of that generation is involved in the family farm operation.
Quist highlighted the importance of addressing family dynamics and communication during the entire transition planning process.
“Without clear communication and alignment of expectations among family members, the transition can lead to disputes and misunderstandings, potentially jeopardizing the farm’s future,” she said.
In addition, assembling the right team of professionals, including an attorney, accountant, loan officer, risk manager and financial adviser early in the process is crucial. Compeer Financial has tools and resources available to help start the conversation at compeer.com/transitionplan
Quist explained that an effective transition plan requires assessing whether the current business structure is still appropriate and then making the necessary adjustments to align with the farm’s evolving needs and goals. For instance, a business entity set up decades ago may no longer be optimal due to changes in the farm’s operations or external regulations. Regularly reviewing and updating the business plan ensures the farm remains resilient and adaptable.
“The goal is to transform knowledge into action, moving from understanding the importance of transition planning to actively implement strategies that secure the farm’s future,” noted Quist.
Visit compeer.com/events and click Event Recordings to view this two-part webinar series, A Will Does Not Make a Transistion Plan.
Sept. 4 1 p.m. Creative Farm Transitions
Oct. 16 1 p.m. AgriMindset: Economics of Renewable Fuels
Nov. 16 1 p.m. Balance Sheet Basics
Dec. 4 1 p.m. GrainVantage
Dec. 18 1 p.m. Consumer Trends
Building STRONG TEAMS
Board Member Daniel Scheider’s Key to Farm Success
FREEPORT, Ill. — Imagine a life where your job title reads “chief problem solver” instead of president and general manager. That’s essentially the experience for Daniel Scheider, a fifth-generation dairy farmer in northern Illinois. With a deep-rooted history in the farming community, Scheider’s journey extends beyond the barns filled with 675 cows and the 1,100 acres of corn, alfalfa, hay and soybeans. His role on his dairy farm blends challenges and rewards as he focuses on navigating hurdles and placing the right people in the right roles.
Scheider’s dairy farm employs 16 people, nearly half of whom have been with the operation for more than two decades. This is a testament to the family’s approach to leading the farm.
“We’re blessed — it’s the people here who make it all work,” explained Scheider. “We aim to empower our employees, letting them get the job done and not meddling in their work. My main role is to make sure the crew has what they need to get the work done.”
Scheider’s philosophy on delegation is clear: If a task is routine and requires consistent attention, it’s better handled by his team.
“If there’s something that needs to be done on a regular basis in the same way, then I probably shouldn’t be doing it,” he shared. “I should empower someone on my team to handle it. So, I take on more of the accounting work, providing backup for the team and problem-solving where I’m needed.”
As every farmer knows, complications often crop up unexpectedly.
“If there is an issue, it usually happens in the middle of the night or during a holiday weekend,” joked Scheider. “We don’t have a dedicated maintenance person, so I’ll do what I can. I then work with other experts and our team to solve the problem. With milking cows, there’s no stopping, so it’s important to have the right people in place to ensure the work gets done.”
This empowering approach allows Scheider to step back from the daily grind and focus on running the operation smoothly. It also frees him up to engage in efforts off the farm, including his role on Compeer Financial’s Board of Directors.
“Our family sees the partnership with Compeer as crucial,” said Scheider. “Having a lender that’s there during both the good and challenging ag cycles is critical to our success. I’m a big advocate of Compeer for that reason.”
For Scheider, joining the Board in 2022 was a return to his financial roots. After graduating from the University of Wisconsin—Platteville, he worked in banking for a few years before joining his parents back on the farm in 2005. His parents, while still involved, have since taken a step back and spend most of their time in northern Wisconsin.
“About 20 years ago, my family came to Farm Credit when we modernized our dairy,” he explained. “While we aim to continue evolving and innovating, we have a stronger focus on really optimizing our operation. We’re in a bit of a unique spot — we’re not large and we’re not small — and we have to work hard to remain relevant at our size.
“For us, it’s about trying to optimize both quantity and quality in everything — keeping the people, equipment and facilities flowing,” he continued. “And when we do try something new, we know there are times when we’re not going to be right. We have to understand that and have the ability to absorb the mistake.”
This philosophy works on the farm and in the boardroom. Scheider notes that Compeer’s vision of serving more than just agriculture aligns well with his viewpoints as a Board member and a farmer.
“The vitality of rural America is a big deal to Compeer; they understand rural communities and agriculture go hand in hand,” explained Scheider. “It’s important to our clients across Compeer’s territory, and it’s important to our family. When you’re from a rural farming community, you can’t just pick up the farm and move it. It’s so important to make both agriculture and rural America strong for now and for the future.”
Scheider’s commitment to his community extends beyond the farm. He serves on his county Farm Bureau board and the board of a mutual insurance company, is involved in Professional Dairy Producers and participates in his local church, along with his wife, Sarah, and their two school-age children.
“Being involved in the community and with our farm makes me think differently about what I can bring to Compeer,” reflected Scheider. “Growing up and working on the farm, beginning my career in banking, currently leading our farm and now having the privilege to serve on the Board has truly completed the full circle. I feel like I am in a good spot to fairly represent our memberowners as we shepherd Compeer into the future.”
WHAT’S NEW AT COMPEER?
HOLIDAY HOURS
Compeer Financial will be closed for business in observance of these upcoming holidays:
Labor Day: September 2
Thanksgiving: November 28 and 29*
Christmas Eve: December 24 (half day starting at noon)
Christmas: December 25
New Years: January 2
*For your convenience, our CONTACT CENTER will be open for calls from 8 a.m. to 3 p.m., Friday, November 29.
To reach the Contact Center, please call (844) 426-6733.
SHARE YOUR IDEAS IN COMPEER FINANCIAL’S ONLINE COMMUNITY
The Compeer Collective is an opportunity for our clients to connect, interact and engage. Share insights and have a voice in the cooperative through forums, surveys, polls and other conversations. You’ll be able to share knowledge, provide input, make recommendations, seek advice and discuss relevant topics with like-minded clients. Your participation will earn you points to redeem for gift cards! Interested in joining? Email jana. stangler@compeer.com.
Compeer Financial Recognized as a TOP WORKPLACE in Illinois, Minnesota and Wisconsin!
We’re pleased to share Compeer Financial is being recognized as 2024’s No. 2 Best Place to Work in Illinois in the large employer category by the Daily Herald Suburban Business Additionally, we’ve been named a Minnesota Top 200 Workplace in 2024 by the Star Tribune and a 2024 Top Workplace by the Wisconsin State Journal
This honor is a testament to our 1,400 team members and their commitment to serving our clients in agriculture and rural America each and every day!
HERE FOR YOU
Looking for help navigating challenges related to work, family, rural life or your health? We’re here to help.
As a member of Compeer Financial, you and your family have access to exclusive benefits through resources and confidential phone consultations from TELUS Health One. These resources are available 24/7 by phone, Mobile App or online — all at no cost to you.
Learn more about your member benefits at compeer.com/resources/member-benefits
THRIVE WITH A COLLEGE INTERNSHIP
An internship at Compeer Financial is a learning experience like no other. You’ll build connections and lifelong relationships while gaining professional experience that prioritizes your growth. Our interns enjoy a flexible, collaborative model and are empowered to make meaningful contributions during their time with Compeer.
Internship opportunities are available in areas like:
• Lending
• Appraisal
• Business Technology
• Corporate Finance
• Credit Underwriting
• Crop Insurance
• Human Resources
• Marketing and Events
• Tax and Accounting
• Legal
Whether you’re a college student or have a college student in your life, visit compeer.com/collegerelations for more details on current internship opportunities.
YBS CLIENT ADVISORY GROUP LOOKING FOR MEMBERS
Compeer Financial is looking for individuals to provide feedback on our GroundBreakers program, which serves young, beginning and small (YBS) farmers and ranchers. This group helps guide changes to meet client needs and assess the program’s effectiveness. The committee is composed of clients representing diverse industries, including grain, swine, dairy, livestock, fruits, vegetables and other niche markets. To join, members must:
• Qualify in at least one YBS category
– Young: Age 35 or younger
– Beginning: 10 years or less farming experience
– Small: $350,000 or less in gross annual revenue
• Industries: grain, swine, dairy, livestock, fruits, vegetables and other niche markets
• Reside within Compeer’s territory
YBS Client Advisory Group members serve two-year terms and meet semiannually in person. For more information, email GroundBreakersClientAdvisoryGroup@compeer.com
EFFORTLESS MONEY MANAGEMENT with Compeer’s Digital Solutions
At Compeer Financial, our advanced tools and technology offer you the flexibility and convenience to manage your finances wherever you are, without losing the personal touch of our dedicated financial officers who are here for you every step of the way. Experience the ease and efficiency of our digital solutions while enjoying the support and expertise of your Compeer team.
ONLINE BANKING
• Instant and secure access to account balances and transaction history.
• Features include payments, fund transfers, bill payments, statement viewing, and account alerts.
• Mobile App available for remote deposit.
MYCOMPEER
• View statements, billings, crop insurance documents and other account information.
• Securely exchange documents with your Compeer team.
• Create and submit your balance sheet online, access exclusive member-owner benefits and discounts, and manage patronage payment preferences.
