Shenandoah Valley Business Journal

BUSINESS JOURNAL A Byrd Newspapers Publication

Shenandoah Valley

Volume 15, No. 6, April 28, 2015

Agribusiness Keeping Producers Stocked

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SHENANDOAH VALLEY BUSINESS JOURNAL

Tuesday, April 28, 2015

BUSINESS JOURNAL Inside This Issue Shenandoah Valley

The Shenandoah Valley Business Journal is a monthly publication of Rockingham Publishing Company, Inc., 231 S. Liberty St., Harrisonburg, VA 22801.

Focus Section: Agribusiness ■ The Business of Agribusiness . . . . . . . . . . . . . . . . .Page 6

Other Business News

Editorial Staff

■ Apple Processor Expansion To Add 160 Jobs . . . .Page 3

Harrisonburg, Va.

Contact us By mail: Shenandoah Valley Business Journal P.O. Box 193 Harrisonburg, VA 22803

By email: svbjnews@dnronline.com

By fax:

Editor and General Manager: Peter S. Yates

433-9112

Columns ■ Movers and Shakers . . . . . . . . . . . . . . . . . . . . . . . . Page 2

By phone:

Managing Editor: Jerry Blair

■ Valley Business Scene . . . . . . . . . . . . . . . . . . . . . . Page 2

574-6267 (news) 574-6229 (ads)

Staff writers: Vic Bradshaw, Kelly Clark

■ Investments by Matthew R. Frakes . . . . . . . . . . . . Page 5

■ Real Estate by Tim Reamer . . . . . . . . . . . . . . . . . . Page 4

Contributing photographers: Austin Bachand, Nikki Fox

■ Investments by Adam Miller . . . . . . . . . . . . . . . . . Page 7 ■ News To Me by Philip B. DuBose . . . . . . . . . . . Page 10 ■ Investments by Gannon Irons . . . . . . . . . . . . . . . Page 11

Luray Woman Wins Top Honor From Hardee’s Franchiser

Credit Union Taps Cline For Member Advantage Mortgage

F&M Bank Reports Record First Quarter Earnings For 2015

HARRISONBURG — A Luray woman has received top recognition from the largest Hardee’s franchiser in America.

Melissa Presgraves, the district manager for seven restaurants including those in Timberville and Luray, was one of two district managers presented the Founders Award for 2014 from BoddieNoell Enterprises, according to a press release. The company, which operates 334 Hardee’s restaurants in four states, annually honors two district managers and 10 restaurant managers with the award.

Presgraves, who has been with Boddie-Noell for 23 years, received the award on March 1 during its banquet recognizing the winners at the company’s Rose Hill Conference Center in Nashville, N.C. Each winner received a cash award and a plaque.

HARRISONBURG — Tim Cline has joined CommonWealth One Federal Credit Union as a mortgage originator on its Member Advantage Mortgage, the financial institution’s mortgage partner.

According to a press release from the credit union, Cline has worked in the Harrisonburg area before and has helped some local residents with mortgages. His experience includes working with borrowers with less-than-stellar credit to help them enhance their chances of gaining mortgage approval.

CommonWealth One, based in Alexandria, is a member-owned, nonprofit financial cooperative with branches in Harrisonburg and Washington, D.C.

— Vic Bradshaw

See MOVERS, Page 12

HARRISONBURG — Increased loan activity helped F&M Bank Corp. (OTCQB: FMBM) report record earnings for the first quarter of 2015, eclipsing its 2014 results by a whopping 58 percent.

The Timberville-based parent company of Farmers & Merchants Bank reported net income of $1.87 million for the quarter, well above the $1.18 million it posted in the first quarter last year. Earnings per share rose 7 cents, or 15.2 percent, to 53 cents.

The company’s board of directors voted in April to declare a first-quarter dividend of 18 cents a share. The dividend will be paid on May 14 to shareholders of record on April 30.

“We continue to achieve record quarterly earnings on the strength of a rising net interest margin,” said Dean Withers, F&M’s president and CEO. “The margin improvement has been fueled by strong loan demand across mul-

— Vic Bradshaw

On The Cover: Austin Bachand / DN-R

Rockingham Cooperative driver Ricky Thompson delivers feed to the Burkdale Farm in the Dayton area on April 22.

tiple loan categories, including dealer finance, residential mortgage and commercial.”

The bank’s portfolio of nonperforming loans has dropped over the last year, falling to $7.17 million in the first quarter of 2015 from $11.05 million a year earlier.

F&M is an independent community bank with nine banking offices in Rockingham, Shenandoah and Page counties and the city of Harrisonburg. It also operates loan production offices in Penn Laird and Fishersville and VBS Mortgage in Harrisonburg.

— Vic Bradshaw

Local Credit Union Claims National Marketing Awards HARRISONBURG — Park View Federal Credit Union recently was presented See SCENE, Page 5

Harrisonburg, Va.

SHENANDOAH VALLEY BUSINESS JOURNAL

Tuesday, April 28, 2015

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Processor’s $73M Expansion To Add 160 Jobs Andros Picks Mount Jackson Facility For Major Investment

By VIC BRADSHAW Daily News-Record

HARRISONBURG — Andros Foods North America, a company that makes private-label products from apples, plans to spend $73 million over the next three years to expand its Mount Jackson plant and create 160 new jobs.

The unveiling of the project, thought to be the largest single economic development announcement in Shenandoah County history, came via an April 21 announcement from Gov. Terry McAuliffe’s office.

The state is providing $1.1 million in grants to support the expansion, and Andros — formerly Bowman Apple Products — is eligible to take advantage of tax credits, job training funds and other incentives.

Shenandoah County is backing the about 500 employees, and its workforce project with $500,000 in tax rebates over will grow gradually. Construction is exthree years. pected to begin late this year or early 2016 “Andros Foods North and will be done in phasAmerica is a global expert es, but Thome did not Andros Foods North in fruit processing with know how much square more than a century of footage would be added.

America is a global rich history in the indusIn the four years since expert in fruit try,” McAuliffe said in the Andros bought Bowman processing with press release.

Apple Products, he said, The company’s plans production at the Mount more than a century include adding producJackson facility has inof rich history in the tion space, warehouse creased significantly and industry. space and equipment to the workforce has grown increase its apple proby 300 positions. The ex Gov. Terry McAuliffe cessing ability for pouch pansion represents the products, the release company’s emphasis on states, and it also will manufacture prod- the American market. ucts from different fruits. Virginia comBased in southwestern France, Andros peted against other states for the project. Foods is a private, family-run company The expansion also should benefit Vir- that owns and operates 25 factories worldginia apple growers and businesses that wide and employs nearly 5,000 people, acsupport the Andros plant. cording to its website.

Mike Thome, Andros Foods NA vice “Our owners in France are very compresident of finance, said the plant has mitted to the Shenandoah Valley,” Thome

“

said, “and we want to continue to grow our business share in the United States using the Valley as our springboard.”

The incentive package McAuliffe approved includes $400,000 from the Governor’s Opportunity Fund, a $600,000 performance-based grant from the Virginia Investment Partnership program, and $100,000 from the Governor’s Agriculture and Forestry Industries Development fund.

Andros also is eligible to benefit from the Port of Virginia Economic and Infrastructure Development Zone Grant Program, a Major Business Facility Job Tax Credit, and employee training services through the Virginia Jobs Investment Program.

Brandon Davis, director of Shenandoah County’s Office of Community Development, said the county will match the GOF and AFID grants by providing $166,667 tax rebates to Andros for three See ANDROS, Page 13

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SHENANDOAH VALLEY BUSINESS JOURNAL

Tuesday, April 28, 2015

Harrisonburg, Va.

The Problem With Shapes Square Peg-In-Round-Hole Syndrome A Problem To Avoid In Real Estate

M

y youngest son, Emmett, is just a little over a year old.

For a few months now, he has been playing with shape sorting toys. You know the type — a cube or table with a series of holes and corresponding blocks.

Given his age, he doesn’t have a mastery of which shapes fit in which spaces … and this makes him very angry. He switches, rotates, and otherwise tries to force the shapes in, but they just won’t go. Whose fault is it if a square peg doesn’t fit into a round hole or a triangle doesn’t fit into a rectangle?

Commercial real estate can be a slightly more complex puzzle filled with more variables than four shapes, but the principle remains the same. Landlords, tenants, purchasers and sellers are all constrained by a clear set of parameters.

For property owners and tenants, it’s not just the four walls that define the property. In other words, commercial real estate is more than just a shape.

Parking, access, signage, traffic, neighboring uses, and visibility among a myriad of other components contribute to determining the best use and market value.

Each of these six primary factors is comprised of a slew of additional sub requirements As a quick example, a national

Real Estate Tim Reamer restaurant chain typically requires 10 sector has its own set of requirements to 20 parking spaces per 1,000 square equally as complex. feet, 14- to 16-foot ceiling heights, 1 ton Industrial is generally concerned of HVAC per 125 square feet, a properly with workforce, interstate proximity, insized grease trap and traffic counts ex- frastructure and ceiling heights; office ceeding 20,000 cars per day. Access to users focus on size, layout, appearance the property cannot and amenities; and “[W]hen a square peg doesn’t fit retail uses many of be blocked by traffic at a signal light into a round hole, neither the peg the same requireeven though a signal ments as restaurants nor the hole is to blame. It just with different ratios light is preferred.

More often than and demographic redoesn’t fit.” not, a drive-thru is a quirements. requirement. Neighboring businesses The point is a lot has to be right for should be complementary and, of both parties to create a fit. course, cannot have restrictions against It’s part of the broker’s job to help coany menu items offered by the restau- ordinate that fit (more on this next rant. month). Keep in mind, when a new Most workers and residents within a property is brought to market it is genfive-minute drive time should fall with- erally listed on a database in the form of in a range of 18 to 45 years old with an the MLS or its commercial equivalent income above $30,000 per year. like CoStar and LoopNet. This is generally considered before New listings are reviewed by the enthe property is scored, sales potential tire commercial real estate brokerage determined, and lease or purchase nego- community, or at least those that spetiations begin. If it’s a local restaurant, cialize in the property sector representthe criteria isn’t as stringent, but you’d ed, to determine the viability of the new better have a hood in place. offering for their clients. Economic inIt would be fair to think I am making centive would require as much. this sound more complex than necesSo, when a property isn’t getting atsary to make a point — I’m not. Every tention, it’s generally not because it’s

being ignored by your broker, but by the entire brokerage community. It’s not personal; there just isn’t a need at the time or there are better alternatives.

Both the shape-sorting toy and commercial real estate are solved by time and effort. It’s no less frustrating for all involved in the moment, but given enough of both, the right fit tends to be produced.

Still, when a square peg doesn’t fit into a round hole, neither the peg nor the hole is to blame. It just doesn’t fit and it doesn’t matter how hard you push because it’s not just a shape.

Tim Reamer provides commercial real estate brokerage and consulting services with Cottonwood Commercial and specializes in retail representation, investment property (multifamily | commercial | NNN), and development projects.

Learn more at www.timreamer.com.

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SHENANDOAH VALLEY BUSINESS JOURNAL

Harrisonburg, Va.

Awards Given At March Conference Scene

FROM PAGE 2

two national marketing awards from a trade association, according to a press release.

The Credit Union National Association Marketing and Business Development Council, which has more than 1,100 industry professionals as members, honored the local financial institution with a Diamond Award for its annual report entry “Making Connections” and a Category’s Best award in the miscellaneous category for its 2015 member calendar. The calendar featured photos of the Shenandoah Valley submitted by credit union members.

The awards were presented during the organization’s annual conference in Las Vegas held March 25-28. Honors are presented in 29 categories.

Park View is a nonprofit, memberowned credit union that provides financial services at four locations in Harrisonburg and Rockingham County.

Tuesday, April 28, 2015

Converting Assets When You Retire

I

f you’re about to retire — or have already recently retired — you have an important decision to make about the money in your 403(b) or 457 plan account.

Typically, a retirement plan participant leaving an employer has the following four options (and may engage in a combination of these options depending on their employment status, age and the availability of the particular option): Cash out the account value and take a lump sum distribution from the current plan subject to mandatory 20 percent withholding, as well as potential taxes and 10 percent penalty OR to continue tax deferred growth potential and: 2. Leave the assets in the former employer’s plan (if permitted) 3.Rollover the retirement savings into the new employer’s qualified plan, if one is available and rollovers are permitted 4.Rollover the retirement savings into an IRA Other factors in making a rollover decision- include (among other things) the differences in: (1) Investment Options, (2) Fees and Expenses, (3) Services, (4) Penalty-Free Withdrawals, (5) Creditor Protection in Bankruptcy and from Legal Judgments, (6)

Required Minimum Distributions or “RMDs”, and (7) Employer Stock.

If your plan allows it, rolling over your account into an IRA may prove beneficial to you

Investments Matthew R. Frakes

for a number of reasons.

More Investment Options 403(b) and 457 plans generally offer limited investment options.

With an IRA, you have access to a greater range of investments, including mutual funds, ETFs, stocks, bonds and cash. This allows you to develop a more precise mixture of investments that best reflects your own personal risk tolerance, investment philosophy and financial goals.

Fees The fees associated with an IRA should be compared to the expenses in your 403(b) or 457 plan. Fees have a direct impact on See FRAKES, Page 7

— Vic Bradshaw

Forbes Names Serco One Of Best Employers In U.S. HARRISONBURG — Serco Inc., which employs 187 people locally at its office on Technology Drive, is one of the best employers in the United States, according to an American business magazine.

Serco ranked 39th on Forbes magazine’s list of the best employers in America for 2015. The company provides information technology and management services to government agencies.

Google topped the rankings. According to forbes.com, the rankings were based on Statista.com’s independent, anonymous survey of 20,000 U.S. employees who worked for American companies or institutions with at least 2,500 employees or U.S. divisions of international firms.

— Vic Bradshaw

Downtown Renaissance, City Honored For Main St. Work HARRISONBURG

—

Harrisonburg

See SCENE, Page 14

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SHENANDOAH VALLEY BUSINESS JOURNAL

Tuesday, April 28, 2015

The Business Of Agribusiness

Harrisonburg, Va.

Valley Suppliers Keep Area Farmers, Producers Going

By VIC BRADSHAW Daily News-Record

HARRISONBURG — When Lareth May needs something for his Timberville farm, he often drives no farther than Harrisonburg to get it.

Not all of Virginia’s farmers are so lucky, but ready access to companies that cater to farmers is one of the advantages to living in the state’s No. 1 agriculture county.

“I’d say [local agribusiness suppliers are] very important from the standpoint that we’ve got a number of these businesses here in the county,” said May, the turkey, cattle, sheep and hay farmer who is president of the Rockingham County Farm We’ve got at least Bureau. “We’ve got at least three major three major equipment dealers in the county, and a lot of other places you’ve got to run a considerable equipment dealers distance to just get parts. in the county, and “I’m sure a lot of producers are glad to a lot of other have this kind of convenience and benefit this close by.” places you’ve got to Local agribusiness isn’t limited to what run a considerable comes out of area fields, poultry houses and distance to just get barns. Dozens of enterprises support agriculture by providing supplies, fuel and services. parts.

May said he usually visits a general sup Lareth May, president, ply store such as the Rockingham CooperaRockingham County tive weekly and drops into a poultry supplier Farm Bureau such as Poultry Specialties “at least once or twice a month.” The convenient stores provide him quick access to what he needs.

“Something’s always breaking down,” he said, “or you always need a little bit of this kind of feed or supplement or animal health supplies.”

“

Ricky Thompson, who drives for Rockingham Cooperative, delivers feed to Burkdale Farm, owned by Leon and Elva Rhodes, in the Dayton area on April 22. For farmers and others involved in agriculture around the central Valley are more fortunate than those in some parts of Virginia, where companies that cater to their needs isn’t so accessible.

Golden Business For half a century, Dairymen Specialty Co. Inc. on John Wayland Highway just south of Harrisonburg has supplied and equipped local dairy operations. It provides almost everything one needs except veterinary services and antibiotics, and its employees occasionally work on beef farms and customer homes.

Its reach now extends well beyond the Shenandoah Valley.

Greg Derrow, the company’s general manager and vice president, said that See AGRIBUSINESS, Page 8

Austin Bachand / DN-R

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SHENANDOAH VALLEY BUSINESS JOURNAL

Harrisonburg, Va.

Tuesday, April 28, 2015

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If Managed Wisely, Windfalls Can Be Enjoyed For Years

A

lthough the odds of winning the lottery may be stacked against you, there’s a chance you’ll receive a large — perhaps unexpected — financial windfall at some point during your life. Regardless of how it arrives — inheritance, insurance payout, divorce settlement, retirement-plan distribution, sale of a business or company stock options — careful money management is critical to enjoying the money for years to come.

Unfortunately, many windfall recipients fail to use their newfound wealth wisely and are left with little or no savings — and lots of regret. To avoid joining their ranks, there are a number of important considerations to keep in mind when receiving large cash payouts.

Avoid Sudden Impulses Most windfalls are squandered during the first days, weeks and months as recipients make impulsive decisions to quit their jobs, take exotic vacations, or buy a new house or car. For this reason, the best course of action is often to leave the entire sum in a money-market account for the first six months.

This requires a great deal of discipline, but you’ll avoid making irrational decisions and will give yourself time to evaluate your options and develop a solid long-term plan.

Many people mistakenly believe that a

Investments Adam Miller

large sum of money is the answer to all of their problems. In fact it often creates new anxiety and stress. By explaining your options and creating a plan, a qualified financial advisor can help manage a windfall.

Invest For Long-Term Gains While using a portion of the windfall to reduce debt and pay bills is often a good idea, investing a significant sum for your future is also recommended when suitable.

The windfall’s potential for appreciation can be significantly increased through longterm investments in both stocks and bonds.

Keep in mind, though, that investing money carries risk as well. In many cases, investing a windfall can be a difficult decision, but it’s important to remember that, factoring in inflation, cash that is not invested could be losing purchasing power.

Upon hearing about your windfall, friends and relatives may come forward of-

fering financial advice. While they may have your best interests at heart, their advice might not help you achieve your financial goals.

Before you make any investment decision, it’s important to review your existing holdings, expected expenses, employment security, risk tolerance, taxes and time horizon before retirement.

A professional financial adviser can help you evaluate these variables and craft a long-term plan to help you achieve your goals.

One strategy an adviser might recommend — to avoid investing the entire sum during unfavorable market conditions — is dollar-cost averaging, or investing a predetermined sum of money on a regular basis.

Such a program does not guarantee a profit or protect against loss in declining markets. It involves continual investments, so you should also evaluate your ability to

continue purchases through low price levels. But it can help even out the market’s peaks and troughs; it can also help you resist the urge to time the market — something even professional investors seldom do well for any length of time.

Manage Taxes A large financial windfall will quickly educate any unsuspecting recipient about the tax strings attached. To determine how much to set aside for taxes, check with a tax adviser or accountant.

The sooner you can calculate tax implications, the easier it will be to plan for the future. Since the windfall may push you into a higher tax bracket, it’s also a good idea to discuss what steps can be taken to manage taxes in the coming years.

How you spend, save and invest your financial windfall will determine whether it helps you achieve your financial goals or leaves you with regret. To learn more about effectively managing an inheritance, insurance payout, divorce settlement, retirement-plan distribution, sale of business or company stock options, contact your financial adviser.

This ar ticle was written by Wells Fargo Advisors and provided cour tesy of Adam D Miller, financial adviser in Harrisonburg, 540-434-9926.

Professional Support Can Help With Making Complex Investment Decisions Frakes

FROM PAGE 6

your returns. With a wider range of investments to choose from, you can include a fee comparison component as part of your decision-making process.

IRA, you’ll have a single, consolidated account to track. This makes it easier to monitor your investments, rebalance as appropriate, and schedule required minimum distributions.

Tax Benefits Greater Flexibility Some plans allow only lump-sum distributions, and others may limit the frequency of withdrawals. If you roll the money into an IRA, you can take it out on your own schedule, provided you are at least age 59½.

More Convenience If you have worked at different jobs during your career and you roll all your previous employers’ plan balances into an

There are a number of tax benefits to consider, as well.

If you directly roll over to a traditional IRA, you don’t need to pay taxes until you start withdrawing money from your account. Note that if you roll over the money from a traditional plan to a Roth IRA, you will have to pay income taxes on the full balance converted in the year you make the conversion. Any withdrawals made after a conversion are tax free once you have attained age 59½ and it’s over five years

since the conversion date.

If you have after-tax contributions in your employer plan, you may opt to withdraw them without penalty when you roll over your assets. However, if you wish to leave those funds in your retirement account in order to continue tax deferral, you can include them in your rollover.

When you begin regular distributions from your IRA, a prorated portion will be deemed nontaxable to reimburse you for the after-tax contributions.

for inflation?

If you roll over your assets into an IRA, you can access the guidance of a financial professional to help you determine a strategy suitable for you. A financial professional may help you with your estate planning needs.

For example, with 403(b) and 457 plans, heirs must take out all the assets after the account holder dies and face a potentially large tax bill. However, beneficiaries of IRAs may be able to stretch distributions out over their lifetimes.

Professional Support Managing money in retirement can be complex. How should you invest? How much can you withdraw each year? What about your pension? When should you take Social Security? How do you compensate

Article written by Wealth Management Systems Inc., courtesy of Matthew R. Frakes, financial adviser, The Frakes Group at Morgan Stanley in Harrisonburg. Call 540-438-7909 or visit www.morganstanleyfa.com/thefrakesgroup.

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SHENANDOAH VALLEY BUSINESS JOURNAL

Tuesday, April 28, 2015

Harrisonburg, Va.

Poultry Specialties Says Most Revenue Comes From Installing, Servicing Equipment Agribusiness

FROM PAGE 6

from its headquarters here and a branch office in Rocky Mount, Dairymen Specialty’s 41 employees serve all of Virginia and parts of West Virginia and North Carolina.

Founded by current President and CEO Lawrence Derrow in 1965, Dairymen Specialty is a family business. Greg is his son, and a second son, Jeff, is feed manager and treasurer.

Greg Derrow declined to provide company sales figures, which tend to fluctuate with milk prices, but he said that in a typical year its revenues are divided pretty evenly between new equipment sales, service and hygiene products. It delivers hygiene supplies to farms monthly.

Technological advances are changing the industry, especially for large farms. In fact, Dairymen Specialty’s employees are outfitting a dairy barn for Virginia Tech so it can test new computerized systems made by Afimilk before the software hits the market.

The company also has installed 72-stall rotary milking systems for some clients, including Stony Run Farm in McGaheysville, Derrow said. Cows step into a stall, ride the carousel for about 10 minutes while being milked, and step off when they’ve completed the circuit.

“It takes the parlor setting and turns it into an assembly line,” he said. “It saves on labor costs.”

The cows also like it because the system reduces their stress, and they get more milking time. Derrow said the change has resulted in a production increase of about 20 percent.

The service side of the business is vital to the farms Dairymen Specialty supports.

The company provides 24-hour emergency service, and has technicians certified to work on nine equipment brands.

With its clients spread over a wide geographic area, emergency calls are common.

Four milking and cooling trucks and four feeding and manure-handling trucks stand ready to respond, and Derrow said the company can receive five calls on a stormy night.

“They’re an operation where they can’t stand still,” he said. “If they sit idle, it’ll damage the cows.”

Avian Enterprise Poultry Specialties’ business model is similar to its dairy equivalent.

Oren Heatwole said the company, which he and his partners bought 16 years ago, provides replacement parts and other sup-

Rockingham Cooperative’s Rusty Serrett helps Dianne Cullers of Singers Glen find feed at the cooperative’s Harrisonburg location on April 21.

Austin Bachand / DN-R

plies for chicken and turkey farmers at its stores, but most revenue comes from installing and servicing equipment. Though he declined to provide a breakdown, he said the “vast majority” of its revenue comes from remodeling poultry houses and building and equipping new ones.

Poultry Specialties’ income can rise and fall dramatically depending on the economy because so much of the business involves capital projects, he said.

“It’s different than I expected. It’s more of a roller-coaster ride,” said Heatwole, who declined to say how many people the company employs. “You have a lot of work, and then not a lot of work. We’re riding a pretty high wave right now. There’s a lot of building right now that next year might not be.”

To help smooth out the peaks and valleys and provide convenient access for its customers, Poultry Specialties has three locations — the store it bought in Broadway, the Dayton location opened in 2001, and a store in Moorefield, W.Va., launched last year.

“That makes us where we can service just about anywhere fairly quick,” Heatwole said.

See AGRIBUSINESS, Page 9

Nikki Fox/ DN-R

Dairymen’s Speciality Co. service rep Mark Lehman, 76, checks the milk storage tank’s cleaning system in the parlor at the Dayton dairy farm Walkup Holsteins on April 21. Lehman has worked at Dairymen’s Speciality for 50 years.

Harrisonburg, Va.

SHENANDOAH VALLEY BUSINESS JOURNAL

Tuesday, April 28, 2015

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Rockingham Cooperative Sales Up 6.7 Percent Agribusiness

FROM PAGE 8

Feed To Twine

Austin Bachand / DN-R

Rockingham Cooperative’s Gale Billhimer helps customer Bobby Wilkins select horse feed at the Harrisonburg store on April 21.

Not all local agriculture support businesses, however, specialize in one segment of the industry. Rockingham Cooperative provides a range of goods to area farmers. Most of its revenue feed sales for dairy and beef cattle, but its nine retail locations in Rockingham, Shenandoah, August and Highland counties and the city of Harrisonburg also provide everything from seed corn to crop chemicals to twine.

“We stock the basic farm supplies and keep them at every store,” said Keith Turner, the cooperative’s feed division manager and director of purchasing. “We’ve made a commitment to have key supplies that farmers might need at every store but will special order items people need.”

The cooperative serves a larger geographic area than the four counties, and its 4,000 farmer owners

“

Agriculture is a shrinking to flat market and we’ve been able to have sales growth. So we’re pleased with that.

Norman Wegner, Rockingham Cooperative general manager

aren’t all local. Each receives an annual patronage dividend based on how much they buy from the co-op.

The retail shops might be most people’s idea of the co-op, but it’s the feed mill that is big business.

Feed accounted for about 69 percent of its $99.6 million in sales in 2014, with agronomy sales coming in at 12.7 percent and farm supplies totaling 3.5 percent. Hardware, sporting goods and clothing also are sold at the cooperative or its Ace-

brand hardware stores.

Corn and soybeans are purchased from farmers throughout the region to make that feed.

Rockingham Cooperative also sells feed for horses and pets. Sales in 2014 were $9.7 million more than the cooperative collected in 2013. A new store helped with that, but same-store sales were up 6.7 percent.

“Agriculture is a shrinking to flat market, and we’ve been able to have sales growth,” said Norman Wenger, general manager of the co-op, “so we’re pleased with that.”

Rockingham Cooperative also pours money into agriculture-related youth programs in 26 counties.

Turner said it projects contributions of $300,000 toward those efforts this year.

“It’s a commitment,” Wenger said, “to the future of agriculture.”

Contact Vic Bradshaw at 574-6279 or vbradshaw@dnronline.com

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Tuesday, April 28, 2015

SHENANDOAH VALLEY BUSINESS JOURNAL

Harrisonburg, Va.

Leadership Character Pays Big Dividends I

n the wake of numerous media reports that unethical business leaders do damage to their organizations, it would appear that a relevant question would be whether the opposite is also true — whether firms with principled leaders perform better. The April issue of Harvard Business Review explores that question, and finds that the answer is “yes.”

An international research firm examined leaders on four main traits — integrity, responsibility, forgiveness, and compassion — and asked employees at 84 companies how consistently their leaders demonstrated those traits. At one end of the scale were the ten highest scorers (labeled “virtuoso” leaders), and at the other end were the 10 lowest scorers (labeled “self-focused” leaders).

Results showed that “virtuoso” CEOs had an average return on assets of 9.35 percent over a two year period, compared to an ROA of 1.93 percent for the “self-focused” CEOs. In addition to outperforming the self-focused CEOs on financial metrics, virtuoso leaders received higher employee ratings for vision and strategy, focus, accountability, and executive team character.

Interestingly, leaders who need to work on their character appear to be very unaware of it, and give themselves much higher ratings than their employees give them. In contrast, leaders who scored high in the survey rated themselves slightly lower than their employees rated them. Perhaps the best news is that lead-

ers can overcome character deficits through guidance from trusted mentors and advisers.

capacity for change.

Consequently, desired change initiatives must be prioritized, which can be more difficult than Change Can Be Tiring it might seem. Then Change is an inleaders should deescapable facet of orvelop a plan for inganizational life — troducing change today more than in over time as the the past. The spring workforce’s capacity issue of HR Magafor change increaszine reports that, as es. a result of “so many In short, the things going on,” a process is about bemajority of employcoming more strateees experience gic about what “change fatigue,” and changes are introalmost half of change duced, as well as initiatives fail. how and when Oftentimes, the changes are intro— By Philip B. DuBose main problem is that duced. The result Brief summaries from top business leaders wishing to will be lower absenpublications to help business leaders succeed. implement change teeism, higher enespouse a “more is gagement, and lowbetter” philosophy er turnover among when it comes to new top performers, who ideas and procedures. As a result, these become frustrated and exit the organizamanagers often fail to acquire a big pic- tion. ture perspective of all the changes that are occurring in the organization. In ad- Show Appreciation Authentically That’s the recommendation in an artidition, they typically fail to consider how cle in the April issue of Training and Deeach change affects different units.

The article suggests a sensible ap- velopment (T+D) magazine. Employee proach to resolve this problem of “change recognition programs seem to be a popusaturation.” The first step is for leaders to lar staple of most organizations, but such accept that organizations have a limited programs often have minimal impact

NEWS to

ME

upon employee satisfaction and morale.

The generic plaques and certificates — that everybody receives — are quite impersonal, and they, along with other tangible awards, leave employees feeling like the awards are primarily for show. What’s needed is authentic appreciation.

Communicating appreciation is not simply giving a compliment in passing, or sending out three thank you notes each month. Instead, it involves realizing that not each person feels valued or appreciated in the same way, and then communicating appreciation in a way that is meaningful to the recipient.

Many people find verbal praise meaningful, while others feel that “words are cheap,” and prefer something tangible.

Some people feel appreciated when somebody helps them with a difficult task, while others may appreciate being entrusted to complete the task without any assistance. Another way to show appreciation is to stop by and spend time with employees who like to see their supervisors now and then.

Feeling appreciated at work is critical because people want to know that what they’re doing at work “matters,” and that the work experience is more than just putting in your time or getting a check.

Consequently, it’s essential to offer authentic feedback regularly — and to tailor it to fit the recipient — and do so in an authentic way.

Philip B. DuBose is a management professor in the James Madison University College of Business.

DCCU Awards Scholarships To Area Students WAYNESBORO — DuPont Community Credit Union recently announced the winners of its annual scholarship contest.

During the last 20 years, DCCU has awarded nearly $250,000 in scholarship funds, helping hundreds of students continue their education, according to a press release.

This year, applicants were asked to write a 750- to 1000-word essay about what they see as the greatest financial challenge people will face in the next

five years and the role a credit union can play in helping members and the community prepare for this challenge, the release stated.

The following students were named as winners: Timothy Byrd, adult category; Rachel Tinsley, Broadway High School; Lauren Bartley, Buffalo Gap High School; EmilyAnn Burr, Central High School; Kelsea Riffe, East Rockingham High School; Olivia Heeb, Fort Defiance High School; Isabelle Burden, Har-

risonburg High School; Laken Hostetter, Parry McCluer High School; Anna Wagner, home-schooled; Lauren Ernst, Riverheads High School; Elizabeth van Assendelft, Robert E. Lee High School; Sarah Troise, Rockbridge County High School; Samantha Syptak, Spotswood High School; Elizabeth Funkhouser, Stonewall Jackson High School; Rachel Tischler, Strasburg High School; Kevin Blacka, Stuarts Draft High School; Lauren Onestak, Turner Ashby High School; Isabel Lee, Waynesboro High

School; Kelsey Sims, Wilson Memorial High School.

For more information about our scholarship winners, including excerpts from each essay, visit mydccu.com.

DCCU, a not-for-profit financial cooperative founded in 1959, has 10 branches in the central Shenandoah Valley region, with more than 68,000 members, and over $980 million in assets.

— Staff Reports

SHENANDOAH VALLEY BUSINESS JOURNAL

Harrisonburg, Va.

Investments Gannon Irons

‘Step-By-Step’ Can Help Ease The Estate-Planning Process

L

ike many people, you may enjoy investing. After all, it can be invigorating to put away money for your future, follow the performance of your investments and track the progress you’re making toward your long-term goals, such as a comfortable retirement.

However, you might be less excited about doing estate planning, dreading the perceived time, effort and cost. Yet, you can make the entire process more manageable by breaking it up into specific tasks.

What are these tasks? Everyone’s needs are different, but here are a few suggestions that may be applicable to your situation:

■ Purchase life insurance.

If something were to happen to you, would your family be able to stay in the house? Would your children be able to go to college? You should have sufficient life insurance to take care of these and other essential needs.

You might hear about various “formulas” for how much insurance you should purchase, but you may be better off by working with a financial professional — someone who can evaluate your assets, goals and family situation, and then recommend an appropriate level of coverage.

■ Draw up your will.

For most people, a will is probably the most essential estate-planning document.

Regardless of the size of your estate, you need a will to ensure that your assets and personal belongings will be distributed according to your wishes.

If you die intestate (without a will), your belongings will be distributed to your “heirs” as defined by state laws — and these distributions may not be at all what you had in mind.

■ Consider a living trust.

Depending on your situation, you may need to go beyond a will when drawing up your estate plans. For example, you might

want to create a living trust, which can allow your assets to go directly to your heirs, avoiding the public, time-consuming and expensive process of probate.

A living trust offers other benefits, too, so you may want to consult with a legal professional to learn more about this estate-planning tool.

■ Check beneficiary designations.

The beneficiary designations on your insurance policies and retirement accounts, such as your IRA and 401(k), are powerful and can even supersede the instructions left in your will. So it’s in your best interests to make sure you’ve got the right people listed as your beneficiaries. Over time, you may need to update these designations to reflect changes in your family situation.

■ Make final arrangements.

Whenever you pass away, it will be a stressful time for your loved ones. To ease their burden, consider establishing a “payable-on-death” account at your bank, and then funding this account to pay for your funeral and related expenses.

■ Share your plans.

The most comprehensive estate plan in the world may not be of much value if nobody knows of its existence. Share your plans with your loved ones and heirs. It’s important that everyone knows their roles in carrying out your wishes.

When dealing with any estate-planning issues, you’ll want to consult with your legal and tax professionals. And by taking a stepby-step approach, you can keep the process moving forward — without feeling that you’re being overwhelmed.

This article was written by Edward Jones for use by Gannon Irons, a financial adviser with Edward Jones in Harrisonburg. To contact him, call 433-4907.

Edward Jones, its employees and financial advisers cannot provide tax or legal advice. You should consult your attorney or qualified tax adviser regarding your situation.

Tuesday, April 28, 2015

11

Augusta County Establishes Small-Business Loan Fund Applications Available Now, Acceptance Begins May 1 VERONA — Augusta County recently announced it has launched its first small-business loan fund.

According to a press release, the program is aimed at helping ideas become reality by supporting entrepreneurial activity. Born out of the Augusta County Economic Development Authority’s interest to help small business and supported by the county’s Board of Supervisors, the program will offer loans up to $10,000 for terms of one to fiver years, according to the release.

Applications will be open for acceptance on May 1.

“The Economic Development Authority is here to help all Augusta County industries, large and small,” said H. Joseph Williams IV, chairman of the Augusta County Economic Development

Authority, in announcing the program.

“We saw this as the perfect opportunity to give entrepreneurs and small businesses a helping hand.”

The Staunton Creative Community Fund will administer the program in conjunction with Augusta County.

Interested applicants must have a completed business plan and a future or current business in Augusta County, according to the release.

The Small Business Development Center, located in the Augusta County Government Center in Verona, is available to help those wanting to complete a business plan.

Applications are available at www.AugustaVABusiness.com for download. Interested applicants may contact Augusta County Economic Development by calling 540-245-5619 or by email at staff@augustavabusiness.com.

— Staff Reports

12

SHENANDOAH VALLEY BUSINESS JOURNAL

Tuesday, April 28, 2015

Local Ledger

FT List Based On Experience, Assets Movers

Harrisonburg, Va.

FROM PAGE 2

Fargo Advisors’ Graves Earns Financial Times Top 400 Listing HARRISONBURG — Asa W. Graves VII, managing director of investment for Wells Fargo Advisors here, has been listed among the top 400 financial advisers in America by the Financial Times.

The chart of the top advisors indicates that Graves works with highnet-worth clients ($1 million to $10 million in investable assets), ultrahigh net worth clients ($10 million or more to invest) and institutional investors.

Graves was one of only 12 Virginians to Graves make the list. Only two of those professionals work outside Northern Virginia.

A 1991 University of Richmond graduate, Graves began working as a senior research analyst and portfolio manager with a predecessor firm of Wells Fargo Advisors, according to a press release from the company. In 2001, he was named “Best on the Street” by The Wall Street Journal in the earnings-estimate and stock-picking categories for his recommendations in 2000.

He partnered with his father in 2002 and they developed an advisory business model focused on client goal assessment and individual portfolio solutions.

In 2006 and 2007, Graves made On Wall Street’s Top Advisors Under 40 list.

Graves holds a Chartered Financial Analyst professional designation. He has been designated a Premier Advisor by the firm for several years based on his high level of achievement.

Ignites Distribution Research, a sister publication of the Financial Times, conducted the research for the top 400 list. According to the report, it solicited top advisers’ practice information from the largest U.S. brokerage firms, seeking those with at least 10 years of experience and more than $200 million in assets under management.

That list of approximately 1,500 advisers was analyzed using six additional data categories, according to the report. Assets under See MOVERS, Page 13

Unemployment (percentage) Feb. 2015 Harrisonburg 5.8 Rockingham County 4.7 Page County 9.2 Shenandoah County 5.0 Augusta County 4.8 Staunton 5.3 Waynesboro 5.5

Home Sales

Jan. 2015 5.2 4.5 10.1 4.9 4.6 5.0 5.2

Feb. 2014 5.4 4.6 10.8 5.7 4.7 5.4 5.8

Source: Virginia Employment Commission

Labor Force Harrisonburg Rockingham County Page County Shenandoah County Augusta County Staunton Waynesboro

Feb. 2015 24,393 41,092 11,561 21,171 36,669 11,943 10,024

Jan. 2015 24,075 40,536 11,639 21,079 36,528 11,929 10,017

Feb. 2014 25,777 42,479 11,133 19,941 38,797 11,729 9,899

Source: Virginia Employment Commission

Building Permits* March 2015 Permits Estimated Issued Cost

Harrisonburg 1 Rockingham County 38 Shenandoah County N/A Augusta County 37

$340,000 $7.1M N/A $3.8M

March 2014 Permits Estimated Issued Cost

7 $2.1M 20 $3.5M 2 $550,000 13 $2.4M

Source: censtats.census.gov/bldg/bldgprmt.shtml *Permits are for residential construction only, single- and multifamily buildings, as recorded by the U.S. Census Bureau. The figures do not reflect the actual number of units associated with each permit issued for multifamily construction.

Median Price Harrisonburg Rockingham County Augusta County Staunton Waynesboro Shenandoah County Page County

March 2015 $148,000 $188,000 $202,717 $162,046 $179,487 $162,000 $142,800

March 2014 Pct. Change $185,250 — 20.11 $196,000 — 4.08 $202,498 0.001 $96,744 67.50 $171,158 4.87 $152,500 6.23 $179,900 — 20.62

Days On Market Harrisonburg Rockingham County Augusta County Staunton Waynesboro Shenandoah County Page County

March 2015 129 158 144 180 115 186 205

March 2014 Pct. Change 153 — 15.69 168 — 5.95 208 — 30.77 143 25.87 164 — 27.84 199 — 6.53 239 — 14.23

Units Sold Harrisonburg Rockingham County Augusta County Staunton Waynesboro Shenandoah County Page County

March 2015 20 51 52 23 17 57 19

March 2014 Pct. Change 20 0.00 35 45.71 44 18.18 24 — 4.17 23 — 26.09 32 78.13 13 46.15

Sources: Funkhouser Real Estate Group; RealEstate Businesss Intelligence

Retail Sales (in millions)

Source: Virginia Department Of Taxation

BUSINESS JOURNAL

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February 2015 $ 90.6 $ 42.5 $ 11.2 $ 28.2 $ 34.6 $ 28.6 $ 38.9

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SHENANDOAH VALLEY BUSINESS JOURNAL

Tuesday, April 28, 2015

Lineage Serves Mid-Atlantic Region

Company Says More Apples Needed

Movers

Andros

FROM PAGE 12

HARRISONBURG — Lineage Architects P.C. has hired Dann Conyers as a senior draftsman, according to a press release.

Conyers, who completed the computer drafting program at the Woodrow Wilson Rehabilitation Center, has more than 29 years of experience as a draftsman. He will focus on design implementation and detailed drafting for residential, commercial Conyers and institutional clients.

Lineage, based in Verona, is firm that provides architectural and engineering services to clients in Virginia, West Virginia, Maryland, Kentucky and North Carolina.

— a division of Old Dominion Realty — recently joined the elite group of community association managers who have earned the association management specialist credential from Community Association Institute.

Reese, according to a recent press release from Old Dominion, is one of more than 6,000 managers worldwide who have earned the designation.

Reese, an area resident, has managed community associations over the past five years and is also a local real estate agent. According to the release, she manages 11 associations, including one at Smith Mountain Lake area.

CAI is a national organization dedicated to building better communities.

More than 60 million Americans live in an estimated 315,000 association-governed communities.

To earn the AMS credential, managers must have at least two years of experience in community association management and complete advanced course work.

Old Dominion Realty Community Association Management provides homeowner association management services to Harrisonburg, Rockingham County and surrounding area communities.

— Vic Bradshaw

— Staff Reports

management was a key factor, accounting for an average of 65 percent of the adviser’s score.

— Vic Bradshaw

Lineage Hires Senior Draftsman

Lantz Adds Veteran Engineer HARRISONBURG — Lantz Construction Co. has added veteran engineer Mark Steven Byerly to its team as a structural engineer.

Byerly has more than 30 years of experience as a construction engineer, according to a press release Byerly from the Broadway construction company.

He earned bachelor’s and master’s degrees in engineering at Virginia Tech.

— Vic Bradshaw

Reese Earns Tops Industry Professional Credential HARRISONBURG — Betty Reese of Community Association Management

FROM PAGE 3

years. The money will come from the additional machinery and tools and real estate taxes the company will pay because of the expansion.

“Through a partial reinvestment of revenues derived from this expansion, and in conjunction with the Commonwealth of Virginia, we are very pleased to be part of the success of an important and growing corporate partner,” David Ferguson, chairman of the Board of Supervisors, said in the release.

Davis said that to the best of his knowledge, it’s the county’s largest economic development announcement ever in terms of money invested and jobs created.

“This no doubt will be a significant benefit to the folks who live here and need a living wage,” he said. “I think this is an opportunity for folks to earn that living wage.”

Thome said the “vast majority” of the new factory jobs will be production positions on the plant floor, but additional maintenance technicians, welders, su-

13

pervisors and perhaps managers will be needed. He didn’t know what the average wage would be for the new jobs but said it would be “very competitive” locally.

“Our goal here at Andros,” he said, “is to become a destination employer in the Valley.”

Thome said the plant’s fresh fruit manufacturing is limited to apples now.

He declined to say what other fruits the company is considering adding to the product mix.

A significant amount of the company’s apples are sourced from Virginia growers, but he could not provide a percentage or amount.

Thierry Jean, CEO of Andros Foods NA, said Virginia was selected for the project because of the availability of fresh fruit, its support of agricultural activities, its highway and port infrastructure, and the availability of a regional workforce familiar with food processing and distribution.

Contact Vic Bradshaw at 574-6279 or vbradshaw@dnronline.com

GOOD PRINTERS

EMPLOYEE OF THE QUARTER

Cline Joins Team At CommonWealth One HARRISONBURG — Tim Cline has joined CommonWealth One Federal Credit Union as a mortgage originator on its Member Advantage Mortgage, the financial institution’s mortgage partner.

According to a press release from the credit union, Cline has worked in the Harrisonburg area before and has helped some local residents with mortgages. His experience includes working with borrowers with less-than-stellar credit to help them enhance their chances of gaining mortgage approval.

Good Printers, Inc. is proud to announce the selection of Rodolfo Ramirez as Employee of the 1st quarter for 2015.

CommonWealth One, based in Alexandria, is a member-owned, nonprofit financial cooperative with branches in Harrisonburg and Washington, D.C.

This is an employee nominated honor that recognizes employees for outstanding job performance. Other criteria include versatility, attendance, work ethic and pride in their job.

Rodolfo started with Good Printers in October of 2013 as a pressroom assistant. Rodolfo’s peers recognize him as being pleasant to work with, flexible in learning varied responsibilities in different departments and doing a great job with a smile on his face.

— Vic Bradshaw

Congratulations, Rodolfo, you are a deserving recipient of this award.

14

SHENANDOAH VALLEY BUSINESS JOURNAL

Tuesday, April 28, 2015

Main Street’s 90,000 Volunteer Hours Recognized Scene

FROM PAGE 5

Downtown Renaissance and the city recently were recognized for achieving several milestones as a member of the Virginia Main Street program.

The organization and city received a Virginia Main Street Milestone Achievement Award for the contribution of more than 90,000 volunteer labor hours, the completion of 250 building improvements and the private investment of more than $60 million in the 40-block designated Main Street zone.

Harrisonburg has been a member of the Virginia Main Street program for 11 years. In 2014, it was recognized by the National Main Street Center with a Great American Main Street Award.

Twenty-five Virginia cities are part of the program, which provides assistance to help communities promote economic development activity in their downtowns.

— Vic Bradshaw

First National Acquires Area Bank Of America Branches HARRISONBURG — First National Corp. (OTCQB: FXNC), the Strasburgbased parent company of First Bank, announced on April 20 the successful completion of its acquisition of Bank of America (NYSE: BAC) branches in Elkton, Woodstock and four other Virginia locations.

The companies announced their sale agreement on Nov. 19. The transition to First Bank from Bank of America at the six branches in the Shenandoah Valley and central Virginia was completed in April.

First Bank officials previously said that all Bank of America employees would be offered jobs with their current branch or a First Bank location not more than 20 miles away from that site.

— Vic Bradshaw

Fields Of Gold Reaps State Award HARRISONBURG — The regional

Harrisonburg, Va.

New Market Farmers Market To Open In Flea Market Building

Fields of Gold farm trail program has harvested an award from the Virginia Economic Developers Association.

The organization selected the agritourism program to receive its 2015 Community Economic Development Award in the Business Retention, Expansion and Community Development category in its population group.

The four-year-old program operated by the Central Shenandoah Planning District Commission markets an array of farm-related businesses, including farm-to-table restaurants, in the eight counties and five cities partnering in the program.

Rockingham, Shenandoah, Page and August counties and the city of Harrisonburg are part of the region.

A 2011 economic development study estimated that agritourism generated $22.4 million in sales in the region, supporting 811 jobs and having an overall economic impact of $34.8 million.

The New Market Farmers Market debuts its new digs in May. The market reopens for the year in a new location at the Shenandoah Valley Flea Market building, 3549 Old Valley Pike, on May 15. Its hours will remain 2 to 6 p.m. on Fridays.

Manager Apryl Donovan said the market needed a new location when its former home closed last month.

“We were beside the 7-Eleven beside the wine shop [Valley Wine Cellar], but the wine shop closed and the building is vacated,” Donovan said. “We thought we’d move it to where we could also be inside in case it rains.”

Donovan said the market features about a dozen vendors, including Paugh’s Orchard, Terry the Cookie Man and Olive Oil Soap Co. Vendors’ wares include antibioticfree meats, seasonal produce, pottery, baked goods and plants, Donovan said.

— Vic Bradshaw

— Kelly Clark

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15

Rockingham County Herb Supplier Plans $8.7 Million Expansion

By VIC BRADSHAW Daily News-Record

HARRISONBURG — A Rockingham County herb-growing business received $200,000 in state and local funds to fertilize its latest expansion.

Shenandoah Growers, one of the nation’s largest producers of fresh herbs, will receive $100,000 from the state and $100,000 from the county for an $8.7 million expansion project in two locations. The project is expected to create 15 jobs over the next three years.

“The things they’re doing here with agriculture and entrepreneurship are second to none,” Todd Haymore, Virginia’s secretary of agriculture and forestry, said in one of the company’s greenhouses on Koehn Drive, about 12 miles northeast of Harrisonburg.

Haymore, accompanied March 30 by Virginia’s first lady, Dorothy McAuliffe, was there to announce the state award from the Governor’s Agriculture and Forestry Industries Development program.

“The products grown here in the Valley are going to be spread further across the

country and hopefully internationally sometime soon,” he said.

McAuliffe, who attended the event along with top state agriculture officials, most of the area’s state legislators, and numerous Rockingham County leaders, touted the Old Dominion’s agriculture operations.

Shenandoah Growers and other Virginia companies, she said, “are adding more flavor and taste options to the food that sustains us.”

The expansion project will increase the company’s production capacity by half and its product yield by 20 percent, Haymore said.

It is expected to result in $15 million in new sales during the next three years.

Company President and CEO Timothy Heydon said the grant money “helps ensure the project will get done and be complete on time. This is a relatively big project, and it’s helpful in the total financing on that.”

Shenandoah Growers is expanding at its site on Koehn Drive at the base of the Massanutten Mountain ridgeline in northeastern Rockingham County, as well as moving its headquarters and adding distribution to

buildings at 3156 N. Valley Pike, just south of Interstate 81’s Exit 251.

Heydon said the 75,000-square-foot expansion project would allow the company to have 245,000 square feet of greenhouse space. The price tag for that work is $6.7 million. Construction began in December, he said, and the first phase should be finished in May. The third and final phase is expected to wrap up in 2016.

Another $2 million is to be spent on the office relocation and the warehouse that increases the company’s distribution capacity.

While the county is chipping in half the total award, it expects to get that money back quickly. George Anas II, Rockingham’s economic development director, said new real estate and machinery and tools taxes anticipated from the project should total more than $100,000 in less than two years.

“I’m really thankful for the county’s support and the commonwealth’s,” Heydon said. “I haven’t done business in another area that was so supportive of growth and job growth.”

Shenandoah Growers isn’t merely producing and distributing herbs. The 25-year-

0% 48 for

old company is using cutting-edge, proprietary technology to grow better plants for consumers. LED lights are used in the growing process to help the herbs grow stronger, enhance their flavor and aroma, and have a darker green color, Heydon said.

Most of the company’s products are either conventionally grown or certified organic herbs sold in bunches or packaged. It also markets live organic herbs.

Its herbs are shipped from Boston to Miami on the East Coast and as far west as Texas, Chicago and Wisconsin. Heydon estimated that the company accounts for about 20 percent of sales to the U.S. retail grocery market, with organic products accounting for 60 percent of its sales.

Carrie Chenery, Shenandoah Valley Partnership executive director, said she was among the people who worked on Shenandoah Growers’ grant as Virginia’s assistant secretary of agriculture and forestry, and she thinks it’s the type of project the grant program was meant to support.

Contact Vic Bradshaw at 574-6279 or vbradshaw@dnronline.com

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