Summer 2017 Financial Partner

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FarmCreditEast.com

CULTIVATING GR OW TH

THROUGH LEADERSHIP A C O N V E R S AT I O N W I T H C E O B I L L L I P I N S K I

SUMMER 2017

2 | News & Views

10 | Collaboration

16 | Sunset Meadow Vineyards

3 | CBO Letter

12 | GenerationNext: Lilac Hedge Farm

17 | Scholarship Winners

4 | Cover Story

14 | Washington Update

20 | Photo Contest

N E & W V IE S WS Growing Talent at Farm Credit East We have an outstanding team at Farm Credit East, but are always seeking new talent to join us! Do you know someone who would be a great addition to Farm Credit East? Someone with the drive and passion to serve Northeast agriculture, commercial fishing, forest products and rural communities? Direct them to FarmCreditEast. com/careers to view our open positions, or put them in touch with your local branch office. Even if we don’t currently have an open position, we’d

Welcome New Board Member In April, customer-members elected a new director to the Farm Credit East Board of Directors.

LouAnne King, of Madrid, NY, was elected to a four-year term in the central region. LouAnne is an owner of Mapleview Dairy LLC, a family-owned 2,800 cow dairy with 2,500 replacement heifers and approximately 4,600 cropped acres.

LouAnne King

In other results, Lisa Sellew, of Lebanon, Connecticut in the eastern region, and John Knopf, of Canandaigua, NY in the western region, were reelected to four-year seats. Additionally, Peter Barton, of Poughquag, NY, was reelected to a one-year seat in the central region.

love to get the conversation started.

Visit us at Empire Farm Days!

Stop by and visit Farm Credit East at this year’s Empire Farm Days. The show will take place August 8, 9 and 10, 2017 at Rodman Lott & Son Farms in Seneca Falls, NY. Farm Credit East will be raffling a pair of outdoor rocking chairs each day of the show, so be sure to visit our tent at 528 East Seneca Acres Ave. to enter for your

Lisa Sellew

We congratulate the winning candidates. Thank you to our customer-members for voting and to our nominating committee for providing a great slate of candidates.

John Knopf

chance to win.

Looking for local farm products?

Are you looking for fresh, quality farm products in your local area? Farm Credit East’s Farm Fresh Guide provides a listing of resources to find local farm products throughout our seven-state region.

Visit FarmCreditEast.com/FarmFreshGuide to learn more.

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FINANCIAL PARTNER

Peter Barton

At the April 25 reorganization meeting, the Board reelected Matthew Beaton, of Wareham, MA, as its chair, and elected Henry Huntington, of Loudon, NH, as vice chair.

The Board’s five-member Executive Committee includes Chairman Beaton and Vice Chair Huntington, along with Peter Call, Batavia, NY, Daniel Corey, Monticello, ME, and Laurie Griffen, Stillwater, NY.

In addition to those recently elected to the Board and those elected to leadership and Executive Committee positions, the Board includes: Michael N. Brooks, Elmer, NJ; Tim C. Chan, Claremont, NH; Skip Hardie, Lansing, NY; Richard P. Janiga, East Aurora, NY; James A. Robbins II, Searsmont, ME; Douglas W. Shelmidine, Adams, NY; Diane D. Souza, Little Compton, RI; and Peter H. Triandafillou, Orono, ME.

HOW MUCH MONEY ARE YOU LEAVING ON THE TABLE? Jim Putnam — Farm Credit East Chief Business Officer This colorful phrase has become part of popular jargon. It speaks to not getting as much money as you could, or missing an opportunity.

In Northeast agriculture, forestry and fishing, we observe a wide-range of profitability among individual operators, year in and year out. There are a variety of reasons for this range, but the key one is management.

Without effective business management, you may be leaving money on the table. For all your hard work and investment in business assets, you want to be more profitable. Additional profits enable you to improve family standard of living, build your retirement funds, assist the next generation, reinvest in the business or to use however you see fit.

Estimates are that $600 million in profitability is missed each year (on $8.4 billion of gross sales) in Northeast agriculture, based on the gap between profitability of the 25 percent most profitable farms and the average of all farms. Even if my estimate is off by 50 percent, it’s still BIG! I am a realist and I do not propose that improved management can move all that profit potential from “the table” to farmers’ checking accounts. I am passionate, however, that we at Farm Credit East need to provide all the tools in our belt to assist in optimizing your profit potential.

It’s no doubt difficult to relate to my industry estimate, so let’s drill down to a more individual level. Based on the 457 farms in our 2016 Northeast Dairy Farm Summary, the Top 25 percent profit farms earned an additional eight cents of profit on every dollar gross income of milk sold compared to the “All Farms” average. Eight cents on every dollar! (Do the math for your own operation by multiplying gross product sales by eight percent.) Based on the financial information that

Farm Credit East receives, I believe that eight cents/dollar is a reasonable estimate across all farm, forest products and fishing businesses here in the Northeast.

Over 100 years ago, the Farm Credit System was established by Congress to “improve the income and well-being of American agriculture” by providing dependable, affordable access to credit. In 1971, our charter was expanded to services that would assist farmers to better achieve their profitability potential.

CASE IN POINT For the past 38 years, the Northeast Dairy Farm Summary has measured profitability potential on a large sample of farms. Once again, the 2016 numbers tell the same story of profits left on the table.

4 57 DAIRY FAR MS BY P R O F I TA B I L I T Y 25 % LE AST PROFITABLE

Estimates are that $600 million in profitability is missed each year in Northeast agriculture (on $ 8 .4 billion of gross sales)

Net Earnings per Cwt. % of Avg. Milk Price

-12%

Net Earnings per Cow Net Earnings per Worker Equivalent*

Today, we offer a long list of tools: recordkeeping, CenterPoint accounting software, tax services, payroll, business consulting, benchmarking, Dairy Profit Analysis, Knowledge Exchange, GenerationNext, crop insurance, and of course, loans of all types. These tools are available to producers of all sizes and all industries across our territory.

Improving the income and well-being of American farmers, forestry producers and fishermen through loans and services: it’s our Farm Credit commitment to you.

($471) ($21,779)

AVER AGE

Net Earnings per Cwt. Here in the Northeast, Farm Credit East was an early and passionate adopter of offering services that would assist our borrowers in optimizing their profitability potential.

($1.94)

$0.06

% of Avg. Milk Price

0%

Net Earnings per Cow

$15

Net Earnings per Worker Equivalent*

$720

25 % MOST PROFITABLE

Net Earnings per Cwt. % of Avg. Milk Price

8%

Net Earnings per Cow Net Earnings per Worker Equivalent*

$1.38

$356 $17,025

*including family and employees SUMMER 2017

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FINANCIAL PARTNER

CULTIVATING GROW TH THROUGH LEADERSHIP A CONVERSATION WITH

CEO BILL LIPINSKI Bill Lipinski has been in the Farm Credit family for nearly 40 years, and has served as Chief Executive Officer for more than half of those years.

But his passion for agriculture began long before his time with Farm Credit East.

Bill Lipinski grew up on his family’s farm,

working across New York State providing

that are committed to serving Northeast

showing sheep and dairy cattle, participat-

appraisals and sales research. He was hired

agriculture, commercial fishing and forest

ed in 4-H and was involved at county fairs.

after graduation and promoted through a

products, and who have worked together to

He attended Cornell University and earned

number of positions, including being the

grow and enhance Farm Credit East into the

a degree in agricultural economics. While

youngest branch manager, before becoming

strong association it is today.

in college, he was involved in the dairy

CEO in 1994.

judging team and president of the ag fraternity Alpha Gamma Rho — this instilled his desire to lead.

With a resume like this, Bill has witnessed tremendous innovations in technology and experienced the advances, and the

He began his career with Farm Credit

blows, of various cycles in agriculture. He’s

as an intern his junior year of college,

also led a team of top-notch employees SUMMER 2017

5

Kristie Schmitt, editor of Financial Partner, recently sat down with Bill Lipinski to tap into his wealth of knowledge and experience, and to share some of the lessons he has learned along the way.

KS: What has been a defining moment of your career?

BL: There have been many — especially seeing farm owners take risks that result in great success. But I’ve also had a lot of teachable moments working with customers that are struggling. These experiences made me more compassionate, and were rewarding when I could contribute to them coming

Kristie Schmitt: What led you on your path to Farm Credit East?

Bill Lipinski: Showing animals and judging

out the other side.

In one particular experience, I turned down a young dairyman’s loan request and he said

dairy cattle was probably one of the most

to me, “I obviously didn’t do a very good

influential experiences in my early develop-

job in supporting my request. It’s on me to

ment. In judging, you have to evaluate the

convince you that I should get this loan. Not

animals, make a quick decision as to how

on you to say yes.”

to place them and then you have to explain your decision. In many respects, this is

That’s a viewpoint that I’ve always taken

similar to a lending decision. As a lender,

— it’s not my fault if I had to say no based

you have to evaluate a situation, make a

on the information provided. On the other

decision on whether you’re going to extend

hand, Farm Credit East is committed to con-

more capital, and then concisely explain

tinuing to work with customers, so I enjoy

your loan decision.

those times when we are able to support a request that turns into a positive story.

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FINANCIAL PARTNER

KS: What is some key advice you have for young professionals?

BL: Be curious. I pride myself on continuous learning throughout my career. Growing up, I was knowledgeable about all kinds of livestock, thanks to my Dad. He knew about dairy, swine, sheep, horses, etc.

Then I started in Farm Credit’s Dayville, CT, office handling large chicken loans.

So, I had to learn pretty quickly about the chicken business, along with some of the other diverse Northeast agriculture industries — crop, nursery, greenhouse, fishing, timber, etc. I immersed myself in understanding all types of agriculture to develop my expertise. I was curious.

Ask questions. People love when you ask questions about their business, just like I love when customers ask me about finance and capital strategies. It shows me they’re interested and engaged. My advice to anybody, in any industry, is to be intellectually curious, humble and to be able to wear the other shoe. Always think of a situation from the other’s perspective.

age, it’s about desire, drive, and the willing-

I had to work with. I’ve watched plenty of

ness to execute and make decisions. I hope

leaders nuke everybody to build the team that

to leave Farm Credit East better than when

they want. To me, it’s more rewarding to take

I got here, and a big part of that is develop-

the team you’re dealt and make it successful.

Also, don’t volunteer advice. When people

ing potential leaders to lead the organization

come out of formal training — whether a

into the future. So we’ve worked hard to

two-year or four-year school, or whatever

identify, develop and train staff — to instill

it might be, they tend to perceive them-

confidence to lead.

selves to be experts. But people won’t value your advice and seek your counsel until you’ve earned it.

fictitious set of job requirements. I figured out what each team member was good at and assigned job duties that suited their

We also have an important leadership role

skills. I managed to my team’s skills sets,

in the Northeast ag community. Whether

and I’m proud of the outcomes.

Farm Bureau, 4-H, rural community or ag

And, finally, make a decision. As a young

development organizations — all need

employee, I quickly learned that customers

people who are willing to assume leader-

want decisions and want to understand how

ship roles and who want to volunteer their

that decision was reached. I find people get

time and talent. Farm Credit East provides

more frustrated with your inability to act. If

and supports leadership training and devel-

you say no to their dreams, they’ll be upset

opment with the intent that all ag-related

with you regardless, but at least you didn’t

entities will have people who want to step

stall for months and then say no.

up. Their leadership is important to the communities we serve.

KS: Leadership development is a key priority of Farm Credit East — both for your staff as well as in the industry, exemplified through programs such as GenerationNext. Why is this such an important focus?

I didn’t structure Farm Credit East around a

Another important component of leadership is the team built around that leader. I think any successful person or business is just a continuation of their team.

KS: How does Farm Credit East differ from other lending institutions?

BL: Farm Credit East’s main differentiator is our laser focus on our mission to serve agriculture, forest products and commercial fishing in the best way possible. That focus shapes everything we do. We’ve framed a culture built around our customers’ success versus the entity’s success, and we hire people that want to work in that environment.

Yes, other banks also have a customer focus, but ultimately, their success is measured by how well they treat their

BL: Companies that aren’t led well tend to

One of my proudest accomplishments as a

investors. Yes, Farm Credit East has to build

go in circles. Leading isn’t about tenure or

leader is the team I built with the employees

capital and have earnings, but it’s so we’re SUMMER 2017

7

Our goals are to provide the best possible customer experience today while building the cooperative for future support of the ag community.

able to fund the next generation and to

ger. We’ve merged for the sake of serving

fund agriculture in good times and in bad.

customers better.

KS: How have you watched Northeast agriculture evolve?

The risk in agriculture today is also so much

BL: The changes I’ve seen in agriculture,

This focus resonates through our team.

greater. We need the financial capacity to

commercial fishing and forest products have

Our goals are to provide the best possible

withstand cycles and to ensure we’re here

been dramatic and constant since my youth.

customer experience today while building

for the next generation, and we’ve achieved

The industry has certainly become more

the cooperative for future support of the ag

that. We’re going through a dairy cycle right

specialized — whether specialization in

community. To ensure this, the whole team

now and we have the financial capacity to

certain commodities, growing livestock

is focused on customers and assisting in

let customers make their own decisions

operations, precision agriculture, differenti-

Northeast agriculture’s success.

about their future, and to go a few extra

ating plants, hydroponics — all those things.

years to make adjustments if they need to.

There’s also a divergence of people who

That’s a completely different focus.

To maintain our customer-focus, we hire

BL: The original Farm Credit model was to

committed to doing the right thing for the

rent money from Wall Street to the farm gate

customer and the cooperative. And, we

Agriculture, commercial fishing and forest

in the most efficient way possible. In stick-

need to retain those people. Our customers

products have also become a lot more

ing with this model, my three areas of focus

demand quality and consistency in the staff

innovative, and with that, riskier. There are

in building Farm Credit East were to be

they work with, so we strive to provide the

a lot of innovative agricultural techniques,

operationally efficient, build the necessary

best possible staff.

freezer trawlers in the fishing industry, the

capital and be exceptionally well-staffed.

8

have begun lifestyle farming and others that

KS: During your tenure, what have been some of the major evolutions of Farm Credit to better serve Northeast producers?

people that will execute our strategy; that believe in our strategy; and that are

To retain quality people, I have to be able to

are doing unique things to take advantage of market opportunities, such as the increased demand for local foods.

evolution of the chain saw to mechanical harvesting in the timber sector. We have to

Agriculture is evolving, so to best serve

compensate and they have to feel like they’re

the industry, we needed the size and scale

working for a winning company. The business

to be able to grow with our customers.

needs to be growing in some way, shape or

When your customers are outgrowing the

manner, to create an optimistic culture that at-

organization, you start to be less of a part-

tracts committed employees. That’s one of the

ner. But with customers as Farm Credit

reasons growth has been such an important

East’s priority, it’s important to maintain

part of Farm Credit East’s story over the last

BL: Hope is not a strategy. As you take on

local relationships and to be big enough

20 years. Growth is not self-serving. It’s about

risk, you need to have multiple strategies

to do that. We haven’t merged for the sake

creating a winning culture and a winning

for success, and be willing to make right-

of merger, or for the sake of getting big-

company that attracts people to stay.

hand turns to adapt.

FINANCIAL PARTNER

be willing to learn and employ a part of our capital for emerging, often riskier, areas.

KS: Do you have any words of wisdom for those producers facing challenging times?

This doesn’t come without concern. While our region has advantageous market opportunities, these same opportunities present obstacles. The Northeast has some of the heaviest regulatory burdens and costs.

Our proximity to people and the coast puts us on the forefront of the negative impact of policy changes that allow producers to operate. My concern is when consumers and folks outside of agriculture make emotional decisions and not sciencebased decisions. This will have a negative impact on agriculture — producers need technology and science to remain competitive in global markets.

To best serve this evolving marketplace, One of my jobs is to give our Board enough

customer retention and customer service.

Farm Credit East will continue to focus on

data to make decisions. I have to be forward-

We have strong earnings and the capital

efficiency. We’ll offer products and services

thinking and evaluate the probability of

necessary for growth, but we’re not in an

that aren’t being met in the marketplace.

different scenarios.

expansive market.

We won’t waste time competing in areas

The same holds true for farm operations.

That’s our biggest risk. We can manage our

What if the price doesn’t increase? What if

staff and we can do our job, but finding that

you can’t be competitive with the national

next growth engine is difficult.

cost of production? What’s your strategy?

You also have to be willing to change.

There’s a mentality in agriculture that, “This is what I’ve always done, so I’m just going to keep doing it, even if I keep losing money.”

Know your data. Know your business.

Follow and understand market forces, and be willing to make changes accordingly. I don’t know what those changes will be, but be ready for them.

KS: What are some of the issues Farm Credit East faces?

BL: We have a high market share in industries that aren’t growing, so we carry a lot of credit risk. As business conditions change, it has both positive and negative impacts on Farm Credit East. Not everyone makes it through the difficult industry cycles, so that’s certainly a challenge.

that we’re not good at. We’ll maintain our laser-focus on specialization and highly empowered staff, and continue to develop their expertise so that they’re a valuable partner to our customers in the future. It’s this focus

KS: What’s your vision for the future of Northeast agriculture and Farm Credit East’s role in it?

that will grow our financial services practices, helping producers identify the data points they need to be successful.

BL: I’m optimistic. Our customers operate some of the best businesses in the world, and the growing world population will continue to demand their products. Technology is only going to evolve, which may create challenges for some businesses, but will allow others to progress.

KS: After you’ve retired, and reflect back on your time at Farm Credit, what do you think will come to mind?

BL: The people. Most of my memories center around helping and watching people succeed. Having someone try something

Northeast producers should renew their

they weren’t thinking about and having

focus on the great market advantages we

it work out. I got involved in agriculture

have over other parts of the country. Many

to help people achieve their dreams,

producers have benefit from the growth and

their goals, their successes and to make

prices in commodity agriculture over the

a difference. I’ll miss the direct ability to

last decade, but now we’re in a low com-

impact success and make a difference in

modity price cycle. Producers need to take

Northeast agriculture. I also expect to be

advantage of our proximity to markets and

involved directly, or indirectly, for many

water resources, and the transportation

years to come.

differentials we benefit from.

The competition is also getting more aggressive. It’s hard to replace any businesses we might lose, so we have to focus on SUMMER 2017

9

A LENDER’S PERSPECTIV E Jan Bitter — Farm Credit East Cortland, NY Branch Office Manager

Read any business journal and you’ll find articles on the value of collaboration for business success. Farms today are collaborating in ways that would have been unthinkable a generation ago. Joint ventures, mergers and working in arrangements are just a few of the ways that farm businesses are sharing resources to become more efficient and to ensure the future of their operations.

Collaboration can transform a business

In my experience, a more common rea-

for the better. Working with outsiders

son for collaboration failure is incompat-

may give you a fresh perspective and add

ible values. As people consider going into

talent to your operation. It can improve

business together, they often focus on the

asset utilization and clarify the succession

farm operation’s goals: How many acres of

plan for the farm. And, when in business

crop ground will we get to in the next five

with non-family members, management

years? Where should we put the new heifer

may need to be more formal — developing

barn? When you share the same goals for a

organizational charts, meeting schedules,

business, it’s easy to assume that you share

financial reporting, etc.

the same ideas about how to achieve those

There is a tendency to assume that collaborative efforts fail because of financial problems. That is sometimes the case —

goals. That may not be the case, especially when you and your business partner have different values.

especially when the operations involved

It’s important to talk with business partners

share the same financial weaknesses. It is

about values before you find yourself in an

certainly true that your new entity must

incompatible relationship. Outlined here are

have adequate capital and earnings to suc-

three common areas where differing values

ceed in the long run.

may lead to conflict in the business relationship: Money, Roles and Temperament.

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FINANCIAL PARTNER

Money

Schedules — You’re in the barn every morn-

Spending — There are successful farms with

ing by 5 a.m. Another partner doesn’t show

impeccable landscaping, shiny new paint

up until 10 a.m. and leaves early, but he

and all the latest technology. There are also

happens to be the son of the senior partner.

successful farms with no landscaping, facili-

What can you do about this?

ties that were fully depreciated ten years ago and the only technology in the tractor is the radio. If these two farms were to merge, they would want to have clear guidelines on who has the authority to spend money.

Spouses — Will spouses have a role in the business? Where do they fit into the organizational chart? Are new owners expected to have a prenuptial agreement?

two kids in college have the right to take

Temperament

more money out of the farm than the 25-

Personality Styles — If you are a person who

year old single partner? Maybe, but you

screams, and I am a person who cries when

ought to be clear about how the higher

someone screams at me, it’s unlikely that we

draws impact the business and each part-

will have a productive working relationship.

Compensation — Does the partner with

ner’s capital account.

Some farms have successfully used personality

Debt — There are farm managers who

tests to learn more about the make-up of their

can’t sleep at night if they have outstand-

teams. These tests are typically administered

ing debt. There are others who feel that

by a consultant who gives advice on how team

they aren’t maximizing their return on

members can work together more effectively.

equity if they aren’t leveraged to the hilt.

Explore attitudes about debt before going into business with someone.

Communication Skills — Some people are very comfortable talking with their business partners about their values. Others hope

Capital — Often when farms go into

that by not talking about their problems,

business together, one owner is better

they will go away.

capitalized than the other. Does the better capitalized owner therefore have veto power over major decisions?

Recordkeeping — Who will keep the farm’s books and how often will they provide financial reports to the owners?

Roles Decision-Making Authority — Can a manager

Adaptability — We can guarantee that if you go into business with someone, not everything will continue to be done the way it always has been. Can you adapt to change?

Generational Issues — You may believe that you are giving your young partner lots of responsibility very quickly. They may perceive that they are making no progress. Different generations have different expectations.

make changes to protocols without consult-

Conflict Resolution — Every relationship

ing others? How much money can a partner

has conflict. Decide up front how you will

spend without checking with other partners?

resolve it when it arises.

Human Resources — Following the merger of

The business journals are right.

two farms, a young manager is put in charge

Collaboration does have the

of cropping operations. The head mechanic

potential to make your business

has held his position since the new manager was in diapers and refuses to report to anyone besides the owner. Do you allow this?

ADVICE FOR AVOIDING COLLABORATION PITFALLS

more successful and it may well improve your lifestyle as you share some of the responsibilities of management with others.

• D O N ’ T R U S H I N TO A N Y T H I N G Consider a trial period before making financial commitments.

• U S E A FA C I L I TATO R F O R N E G O T I AT I O N S It may be easier for a third party to bring up sensitive issues.

• B ECOME MORE PROFESSIONAL IN THE WAY YOU MANAGE YOUR BUSINE SS Businesses run more smoothly when there is formal communication, outlines of expectations, routine financial reporting to management, etc.

• A D V I S O R Y T E A M A facilitator will help you to get past issues during your new entity formation. Regular meetings with an advisory team will help to ensure that sensitive issues are addressed on an ongoing basis.

• P U T YO U R U N D E R S TA N D I N G IN WRITING Operating agreements are important. Buy-sell agreements are critical. Annual Certificate of Value should be signed off by all owners.

SUMMER 2017

11

Lilac Hedge Farm’s Tom Corbett with Farm Credit East loan officer Patrick Hostetter

Developing the Next Generation of Managers Tom Corbett and Ryan MacKay began Lilac Hedge Farm in 2011, at just 21 years old.

They began renting various pieces of property, and in 2015 were fortunate to purchase 350 acres in Holden, MA, allowing them to grow and improve efficiencies. In addition

Lilac Hedge Farm was a 2016 Farm Credit Fresh Perspectives Recipient

Organizational charts were another takeaway. “It’s really beneficial to understand who answers to who,” Tom explained. “In peak season, we employ about 15 people.

to the property they now own, the business

Ryan and I run the business, and even

partners also use two other properties to

The class covered topics like how to review

though we’re on two different sides of the

graze their animals and produce hay.

balance sheets and income statements,

operation, people were answering to both

including variable expenses, overhead costs,

of us. This created confusion. Establishing

costs of goods sold, and projections — and

an organizational chart to define who an-

then how to use this information to make

swers to who really helps relieve stress.”

Lilac Hedge Farm raises beef, pork, lamb, chicken and turkey. The meat is sold direct retail through farmers’ markets and a CSA, as well as wholesaling some product to local restaurants and a few farm stands in the Massachusetts area.

sound business decisions.

Developing protocols

Business management “Overall, GenerationNext provided the op-

One of Tom’s biggest take-aways was devel-

portunity to step back and analyze how we’re

About five years into the business, their

oping protocols. “It was pretty eye-open-

running the business,” he said. “It’s easy to

Farm Credit East representative mentioned

ing,” he said. “It’s the everyday tasks that

get caught up in day-to-day tasks. In the class

to them an upcoming GenerationNext

you assume everyone knows how to do, but

I found myself thinking, ‘O yeah, that makes

program that might be beneficial in their

when you actually write them down, there

sense ... I do that way too much!’ It’s the stuff

development as new business owners. Tom

are quite a few steps involved. It made me

you don’t think about without being in that

decided to attend.

think about how we explain things versus

type of group setting and actually talking

what’s actually involved — you don’t realize

about it. It adds a new perspective.

“I really enjoyed bouncing ideas off of other participants and getting different perspec-

how much you don’t say.

“It really is a beneficial program for anybody

tives,” Tom said. “It was interesting to see

“Establishing formal protocols has made it a

in the early stages of management,” contin-

different ways to look at things and learn

lot easier to take on new staff,” he continued.

ued Tom. “The concepts covered apply to

how others work through problems. It was

“Staff now has guidelines on top of what

any style of a business, so I’ve been recom-

helpful, too, to see where others were at in

we’re teaching them hands-on, so if they

mending it to everyone!”

the learning process and apply it to where I

have a question, they can go back to the pro-

was at, and maybe take some advice or les-

tocol and understand the steps involved.”

sons learned back to my operation.”

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Establishing an organizational chart

FINANCIAL PARTNER

Farm Credit East’s GenerationNext seminar series is designed to advance management skills and business knowledge. The program is optimal for producers, ages 20 to 35, who will be the next generation of operators.

Each seminar includes group discussions, idea sharing and networking opportunities.

The program helps to: • Identify areas for personal growth and development • Acquire tools to help manage an agricultural business • Network with other young industry leaders Sessions are typically held over the winter months.

Contact your local Farm Credit East office to learn more about upcoming sessions in your area.

Over the years, participants have asked if there was a follow up program to GenerationNext, so this year Farm Credit East piloted GenerationNext2.

Targeted to GenerationNext graduates and other mid-career producers, the first GenerationNext2 program was held in conjunction with Farm Credit East’s Annual Meeting this past March in Albany, NY. Titled, “Leadership in Your Business and Beyond,” the program covered strategic management and leadership topics for participants to apply to themselves and their operations, and to stimulate thinking about challenges beyond their own businesses.

“The session covered a number of issues in the areas of strategy, leadership styles, legal issues and generational transfer that relate to me and our business, and that I can apply back home,” said Kelsey Lain Gurda, of Pine Island Turf Nursery in Pine Island, NY. “And it’s always beneficial to be with other young farmers who are facing the same challenges.”

A number of mid-career Farm Credit East staff also participated in the program alongside the producer participants.

In addition to providing a development opportunity for mid-career staff, this format reflected that Farm Credit East staff members are often an integral part of the team when working on solution’s to tackle a producer’s strategic challenges.

The program kicked off with Farm Credit East’s Annual Meeting to provide a first-hand look at Farm Credit East’s cooperative governance. The program also included a networking opportunity with Farm Credit East’s Board of Directors.

Let your local branch office know if you’re interested in participating in a future GenerationNext2 session.

WASHINGTON Update

Tom Cosgrove Senior Vice President for Public Affairs

Uncertainty about Agricultural Labor as Legislation is Introduced The new Administration’s statements on immigration policy have led to a mix of optimism and concern among producers who employ immigrant workers.

President Trump has continued the strong rhetoric from the presidential campaign regarding illegal immigration. His 2018 budget requests funding for a border wall and increased staffing for the Department of Homeland Security (DHS) for Immigration and Customs Enforcement (ICE) and border patrol agents, making it one of the only federal agencies with proposed increases in staffing.

Statements by the president and new

working toward a permanent solu-

would not be unduly harmed by im-

Agriculture Secretary Sonny Perdue

tion to the agricultural labor issue.

migration enforcement efforts.

On April 25, the day Secretary Per-

This position was underscored in

due was sworn in, the White House

a subsequent interview with The

hosted a meeting with 14 producers,

Economist, where the president

at which the president assured the

said, “We also want farm workers

group they would have access to

to be able to come in. You know,

foreign-born workers and that farms

we’re going to have work visas for

regarding foreign-born agricultural workers, however, have taken on a more conciliatory tone. Producers are waiting to find out if the administration’s accommodating statements will take precedence when it comes to enforcement on farms and

14

FINANCIAL PARTNER

the farm workers. If you look, you

separately address the two primary

is supposed to allow employers to

know we have a lot of people com-

policy concerns in the agricultural

do an instant legal status check on

ing through the border, they’re great

labor debate: the need for an effec-

prospective employees. The bills to

people and they work on the farms

tive guest worker program and how

make permanent and mandate the

and then they go back home. We

to address concerns about the cur-

use of e-verify are S. 179 and H.R.

like those people a lot and we want

rent workforce.

2461, which is sponsored by Repre-

them to continue to come in.”

H.R.281, cosponsored by New York

sentative Lance (NJ).

About the same time as the presi-

representatives Stefanik, Collins,

Many agricultural employers are

dent’s comments to The Economist,

Faso and Tenney, addresses the

concerned that implementing e-

however, a report posted on the

guest worker component as it would

verify before the legal status of the

DHS website touted its increased

allow operations with year-round

current workforce has been ad-

arrests and deportations in the first

labor needs, like dairy and other

dressed will be highly disruptive. At

100 days of the Trump Administra-

livestock operations, to access the

a recent agricultural labor meeting,

tion. The post noted that while the

H-2A visa program. The bill would

a participant said he would love to

enforcement focus is still on illegal

also streamline the program and

have the convenience and certainty

immigrants who have committed

move its administration from the

of a workable e-verify system, but

crimes, “Homeland Security Secre-

Department of Labor to the Depart-

given the current composition of the

tary John F. Kelly has made it clear

ment of Agriculture.

agricultural labor force, the country

that ICE will no longer exempt any class of individuals from removal

S. 1034, cosponsored by Senators

is simply not ready for it.

Leahy (VT) and Gillibrand (NY),

The administration has signaled its

focuses on the current workforce

views on e-verify in its 2018 budget

by proposing a “blue card” program,

request, which includes funding

Given enforcement concerns, a

where undocumented workers who

for and assumes the adoption of

Northeast agricultural labor work-

have worked consistently in United

mandatory e-verify within the next

group has been meeting with

States agricultural jobs can obtain

three years. And while Congress

Northeast members of Congress to

legal status if they pay a fine and

will determine whether or not such

express concern about enforcement

pass a background check. The bill

an initiative will be funded, it is

and to advocate for revised policies.

provides a path to legal residency

another example where we will find

In participating in this group, Farm

if they continue to work in agricul-

out if the administration will take a

Credit East seeks to provide analy-

ture. Representatives McGovern

hard line position or if it is willing

sis of the negative impact of not

(MA) and Kuster (NH) are cospon-

to work to accommodate the unique

resolving the agricultural labor issue

sors of H.R. 2690, the House version

circumstances of agriculture.

on farm viability and the Northeast

of the legislation.

proceedings if they are found to be in the country illegally.”

economy in general.

Bills have again been introduced in

In Congress’ current session, two

both houses of Congress to mandate

bills have been introduced that

the use of the e-verify system, which

SUMMER 2017

15

Chris Chichester, George Motel IV, George Motel III and Judy Motel of Sunset Meadow Vineyards with their Farm Credit East tax specialist Kirk Williams and loan officer Colin Hostetter.

RECORDS, TAXES, PAYROLL & BENCHMARKING SERVICES

George Motel and his wife Judy purchased their farm in the early 1990’s. Initially they grew hay and raised beef cattle. However, a few years into their new farm business, following a bit of research and some insight from folks in the wine industry, they realized their 50 acres of land in Goshen, CT, was prime property to grow wine grapes. So, they planted their first crop in 2000.

Today, Sunset Meadow Vine-

The family got started with

yards is a family-run operation.

Farm Credit East just after

George manages the chemis-

opening the winery. “Startup

try of the wine-making and

businesses have their own in-

handles the administrative

tricacies, and Farm Credit East

functions of the company. Judy

understood that,” commented

handles much of the back of-

George. “We also took on a lot

fice operations, including man-

of new projects as the busi-

aging the website and social

ness grew — new buildings,

media. Son George IV manages vineyard and production op-

Sunset Meadow Vineyards

new equipment, additions

- GOSHEN, CT

erations, and son-in-law Chris oversees the tasting room and retail operations. “As is the case with any small business, we all wear a lot of different hats,” George notes.

much of the capital to enable these expansion projects to happen,” he continued.

The family uses Farm Credit East’s records, tax and payroll ser-

The family grows 14 different grape varieties on 33 planted acres. From

vices, as well as participates in the winery benchmarks program.

these grapes they produce 21 different wines, with the majority being

“Agricultural accounting is just a different animal,” said George.

varietal estate wines produced entirely from homegrown grapes.

“I wanted to make sure our farm’s accounting was getting done

“The business has really come a long way from when we first started,” said George. “It was initially a retirement project for my wife and me, but then my son decided he wanted to come into the business, and later my son-in-law, so we’ve grown the business to include them.”

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— Farm Credit East provided

FINANCIAL PARTNER

correctly. I found that Farm Credit East had the expertise in agriculture and agricultural accounting. They understand the industry and they understand our business.”

M E E T

O U R

3 2

SCHOLARSHIP WINNERS E A C H

E A R N E D

$ 1, 5 0 0

T O W A R D

Farm Credit East congratulates our 32 scholarship winners, all aspiring to make a difference in their communities. This year students earned a collective $49,500 in scholarships to help them on their way to becoming the Northeast’s future agricultural leaders.

H I G H E R

E D U C AT I O N

Our scholarship supports students with a diversity of agricultural career aspirations and farm backgrounds from across our sevenstate territory. Congratulations to these deserving students and best wishes for a successful educational experience.

C O N O R S M I TH

CONNECTICUT

North Granby, Connecticut

C H R I STO PH E R B I S CH O FF

UNIVERSITY OF NEW HAMPSHIRE MAJOR: FOREST TECHNOLOGY CAREER PATH: LICENSED ARBORIST

Meriden, Connecticut NAUGATUCK VALLEY COMMUNITY COLLEGE MAJOR: HORTICULTURE CAREER PATH: ORCHARD OWNER

Christopher hopes to have a career as an orchard owner, using the skills he’s learned in horticulture to grow healthy crops and educate his local community.

Conor hopes his commitment to agricultural mechanics, animal care and arboriculture will lead him to a career as a licensed arborist and farmer.

MASSACHUSETTS

M E GAN H E B E RT

G RAC E BARTL E TT

Woodstock, Connecticut

Nantucket, Massachusetts

UNIVERSITY OF CONNECTICUT MAJOR: AGRICULTURE AND NATURAL RESOURCES CAREER PATH: DAIRY FARM MANAGER/OWNER

Megan’s goal is to expand her family’s diversified operation to include local food production and sustainable dairy farming practices.

BA I LEY JACQ U I E R

YALE UNIVERSITY MAJOR: ENVIRONMENTAL STUDIES CAREER PATH: ENVIRONMENTAL CONSULTANT

Grace hopes to return to Nantucket after graduation and apply her environmental studies to help farms lessen their environmental impact, while increasing efficiency.

M AE V E R OTH S C H I L D - S H E A

Canaan, Connecticut

Wilbraham, Massachusetts

CENTENARY UNIVERSITY MAJOR: EQUINE BUSINESS MANAGEMENT CAREER PATH: EQUINE FARM MANAGER/OWNER

Bailey’s love for horses started at an early age. She hopes to use her knowledge of equine business management to own and operate a horse boarding barn.

J ONATHAN R U S S O Norwalk, Connecticut UNIVERSITY OF CONNECTICUT MAJOR: AGRICULTURE AND NATURAL RESOURCES CAREER PATH: AGRISCIENCE TEACHER

Jonathan plans to educate the next generation of agriculturalists in hydroponics, aquaponics and their urban farm applications, while continuing research on hydroponic technologies.

UNIVERSITY OF RHODE ISLAND MAJOR: SUSTAINABLE AGRICULTURE & FOOD SYSTEMS CAREER PATH: URBAN AGRICULTURIST

Maeve aspires to a career in urban agriculture to provide fresh, healthy food for those who cannot easily obtain it.

MAINE

S H E R M AN B R E W E R Southport Island, Maine NORTHEAST MARITIME INSTITUTE MAJOR: NAUTICAL SCIENCE CAREER PATH: COMMERCIAL FISHERMAN/SHIP CAPT.

As an eighth-generation Southport Island native, Sherman comes from a long line of commercial fishermen. He aims to follow those footsteps by earning his captain’s license to make his living on the water.

SUMMER 2017

17

DAY NA M CCR U M

S E R E N E B O R O N OW

Mars Hill, Maine

Munnsville, NY

HUSSON UNIVERSITY MAJOR: BUSINESS ADMINISTRATION CAREER PATH: FARM MANAGER/OWNER

SUNY COBLESKILL MAJOR: FOOD SYSTEMS AND TECHNOLOGY CAREER PATH: FOOD SCIENTIST

Dayna has a deep passion for the potato industry and she looks forward to returning home after graduation as the sixth generation on her family’s potato farm.

A R I A NA WAD SWO RT H

K RYS TL E B U R G E R

Thomaston, Maine

Adams, NY

CORNELL UNIVERSITY MAJOR: VETERINARY MEDICINE CAREER PATH: LARGE ANIMAL VETERINARIAN

MORRISVILLE STATE COLLEGE MAJOR: DAIRY SCIENCE & AG BUSINESS DEVELOPMENT CAREER PATH: DAIRY FARM MANAGER/OWNER

Ariana’s undergrad experience with livestock at the University of Maine persuaded her to pursue veterinary school. She aspires to be a production animal veterinarian.

NEW HAMPSHIRE

B R I A N NA HAN S O N Strafford, NH UNIVERSITY OF NEW HAMPSHIRE MAJOR: ORNAMENTAL HORTICULTURE CAREER PATH: CROP FARM MANAGER/OWNER

Brianna aims to be a farm owner focused on the quality of crops and positive relationships with customers.

Krystle is eager to return home after graduation to contribute her education and experience to her family’s dairy farm.

S U Z AN N E F O OTE Hartford, NY ALBANY LAW SCHOOL OF UNION UNIVERSITY MAJOR: JURIS DOCTOR CAREER PATH: AGRICULTURAL LAW

With her degree, Suzanne hopes to represent New York State farmers and help guide the laws that affect the state’s agricultural production.

AN D R EW LU PI N S KI Goshen, NY BINGHAMTON UNIVERSITY MAJOR: BIOLOGY CAREER PATH: FARM MANAGER/OWNER

NEW JERSEY

G E OR G IA L U CAS Monroeville, NJ DORDT COLLEGE MAJOR: AGRICULTURE CAREER PATH: FARM MANAGER/OWNER

Georgia found her passion for crop and animal diversity through 4-H and Future Farmers of America (FFA), and hopes it will help in her pursuit of a career in agriculture.

K E LLI E VO NT H U N Monmouth Junction, NJ DELAWARE VALLEY UNIVERSITY MAJOR: EQUINE SCIENCE AND MANAGEMENT CAREER PATH: HORSE TRAINER & AGRICULTURAL PHOTOJOURNALIST

Horses and 4-H were Kellie’s passions as she grew up, which has inspired her goal to build an equine business, while capturing the world of agriculture through photos.

NEW YORK

A B I GAI L AUWAE RT E R Blue Point, NY CORNELL UNIVERSITY MAJOR: DESIGN AND ENVIRONMENTAL ANALYSIS CAREER PATH: GREENHOUSE OWNER

Abigail hopes to be the fourth generation of her family’s greenhouse and nursery operation, bringing new designs and efficient technology to their retail operation.

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After graduation, Serene hopes to become a food scientist to create new varieties of food that are healthier for both people and the environment.

FINANCIAL PARTNER

As a fourth-generation vegetable grower, Andrew is eager to return home after completing his education to continue and expand his family’s operation.

AS H L E Y LYM AN Black Creek, NY MORRISVILLE STATE COLLEGE MAJOR: AGRICULTURAL SCIENCE CAREER PATH: VETERINARIAN

Ashley always knew she wanted to be a veterinarian. She hopes her degree and experience growing up with dairy cattle will provide her the tools needed for a successful career.

M I KAYL A M AC N E I L L Cortland, NY VIRGINIA TECH MAJOR: AG LEADERSHIP & COMMUNITY EDUCATION CAREER PATH: HIGH SCHOOL AG TEACHER

Mikayla’s involvement with 4-H and other agricultural associations has inspired her to pursue a career in ag education to teach the next generation of agricultural leaders and farmers.

J AC O B M AS LYN Farmington, NY MORRISVILLE STATE COLLEGE MAJOR: AGRICULTURAL SCIENCE CAREER PATH: DAIRY FARM MANAGER/OWNER

Jacob learned from an early age that he liked working with animals.

He looks forward to a career in agriculture where he can use his skills and experience to be a farm manager.

A LI S ON PAR R OT T

K AT I E S O N D E R I C K E R

Granville, NY

Attica, NY

CORNELL UNIVERSITY MAJOR: AGRICULTURAL SCIENCE CAREER PATH: HIGH SCHOOL AGRICULTURAL TEACHER

PENNSYLVANIA STATE UNIVERSITY MAJOR: ANIMAL SCIENCE CAREER PATH: DAIRY GENETICS OR NUTRITION RESEARCH

Alison hopes to combine her two passions, agriculture and education, as she pursues a career as an agricultural educator.

DA N I E L L E PAS CAR E L L A

Katie’s undergraduate involvement with animal science research has inspired her to pursue a career in research with a goal of improving the efficiency of dairy cattle robotic milking systems.

ADAM S TANTO N

Cattaraugus, NY

Schoharie, NY

SUNY FREDONIA MAJOR: PHILOSOPHY CAREER PATH: AGRICULTURAL LAWYER

With her knowledge of agriculture, the environment and policy, Danielle hopes to become a lawyer who can assist farmers with their business’ legal matters.

KAE LYN PE N N I N G S

SUNY COBLESKILL MAJOR: AG ENGINEERING POWER & MACHINERY CAREER PATH: AGRICULTURAL MECHANICS

With his hands-on experience and responsibility growing up on his family’s dairy farm, Adam plans to pursue a career as an agricultural mechanic.

TYL E R WE AV E R

Warwick, NY

Wyoming, NY

SUNY COBLESKILL MAJOR: ANIMAL SCIENCE CAREER PATH: FARM MANAGER/OWNER

Kaelyn’s interest in farming and education has inspired her future plans to run a livestock and produce farm and incorporate children’s education opportunities.

DA N I E L R I PL EY

UNIVERSITY OF NORTHWESTERN OHIO MAJOR: AGRICULTURAL DIESEL CAREER PATH: AGRICULTURAL DIESEL TECHNICIAN

Recognizing the growing use of specialized, technical equipment on today’s farms, Tyler hopes to build his skills in college to pursue a career as an agricultural mechanic.

KAYL A W I N D E C K E R

Moravia, NY

Frankfort, NY

MORRISVILLE STATE COLLEGE MAJOR: ANIMAL SCIENCE CAREER PATH: FARM MANAGER/OWNER & DAIRY NUTRITIONIST

Daniel’s love for agriculture began when his father gave him his first show calf. After graduation, he hopes to return to his first farm as both an owner and a dairy nutritionist.

CORNELL UNIVERSITY MAJOR: ANIMAL SCIENCE CAREER PATH: DAIRY NUTRITIONIST

Through her studies on the impact of feed costs on a dairy farm’s bottom line, Kayla hopes to help farmers be successful as she pursues a career as a dairy nutritionist.

KAYL A WO R M UTH

ALLI S O N S K I N N E R Clymer, NY

Jordan, NY

PENN STATE BEHREND MAJOR: FINANCE CAREER PATH: AGRICULTURAL LOAN OFFICER

CORNELL UNIVERSITY MAJOR: ANIMAL SCIENCE CAREER PATH: FARM MANAGER/OWNER

With a goal of aiding America’s future farms, Allison plans to use her knowledge of finance and experience with agriculture to become an agricultural loan officer.

Kayla appreciates the impact dairy farming has had on her life, which has inspired her to pursue a career in the dairy industry with the goal of owning her own dairy business.

FARM CREDIT EAST “CHAIR SCHOLARSHIP” RECIPIENT This year, Farm Credit East offered an additional $1,500 scholarship upon a second tier, in-depth review of the applications. The Chair Scholarship is in addition to the $1,500 Farm Credit East scholarship.

E M I LY O O M S Valatie, NY CORNELL UNIVERSITY MAJOR: ANIMAL SCIENCE CAREER PATH: DAIRY FARM MANAGER/OWNER

Growing up on her family’s dairy farm allowed Emily to realize her passion for agriculture. She plans a career as a farm management specialist before returning to her family’s farm.

TO BE A CANDIDATE FOR A 2018 SCHOLARSHIP, CONTACT A FARM CREDIT EAST BRANCH OFFICE OR VISIT FARMCREDITEAST.COM A P P L I C AT I O N S W I L L B E AVA I L A B L E I N J A N U A R Y 2 018 SUMMER 2017

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FINANCIAL PARTNER is for the customers, employees and friends of Farm Credit East. Farm Credit East is a farmer-owned lending cooperative serving the farm, commercial fishing and forest products businesses in Maine, New Hampshire, Massachusetts, Connecticut, Rhode Island, New York and New Jersey. Part of the national Farm Credit System, Farm Credit East is a full-service lender dedicated to the growth and prosperity of agriculture.

Farm Credit East 240 South Road Enfield, CT 06082-4451 Address Service Requested

PRSRT STD U.S. Postage PAID Permit No. 690 Springfield, MA

HOW TO REACH US: Whether you want to praise us, complain, ask our advice or just let us know what’s on your mind, we’d like to hear from you.

WRITE: K ristie Schmitt, Editor, Farm Credit East, 240 South Road, Enfield, CT 06082-4451 CALL: 860.741.4380 E-MAIL: kristie.schmitt@farmcrediteast.com Copyright© 2017 by Farm Credit East, ACA. All rights reserved. Farm Credit East is an affirmative action, equal opportunity employer.

FINANCIAL PARTNER is printed on recycled paper.

2018 Agricultural Views Calendar Photo Contest Help us fill Farm Credit East’s Agricultural Views 2018 Calendar with fresh imagery that illustrates the best of Northeast farming, horticulture, forestry and commercial fishing. We also look for creative photos that celebrate country life in New England, New York or New Jersey.

Your photo entry may appear in Farm Credit East’s Agricultural Views 2018 Calendar and also earn you a $100 cash prize!

• 14 photos will be selected for a $100 cash prize each.

IN SP IR AT IO N? NE ED CR EATI VE

FA R MC R E DI T E A S T.C

VI SI T

OM/CALENDAR

• Submission deadline: July 31, 2017.

• Winners will be contacted by: October 16, 2017

UPLOAD YOUR BEST SHOTS TO OUR WEBSITE BY JULY 31, 2017 FOR YOUR CHANCE TO WIN A $100 CASH PRIZE 20

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