Summer 2019 Financial Partner

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FarmCreditEast.com

Growth of the

Craft Beverage Industry in the Northeast SUMMER 2019

INSIDE

2 | News & Views

10 | CASE Partnership

14 | Public Policy Update

3 | CEO Column

11 | Country Living

16 | Thunder View Farms

4 | Cover Story

12 | Community Involvement

17 | Scholarship Recipients

N E & W V IE S WS Visit us at Empire Farm Days!

Stop by and visit Farm Credit East at this year’s Empire Farm Days taking place August 6, 7 and 8, in Seneca Falls, NY. Farm Credit East will be raffling two YETI® coolers each day of the show, so be sure to visit our tent at 526 East Seneca Acres Avenue to enter

Welcome New Board Members In April, customer-members elected two new directors to the Farm Credit East Board.

Kurt Alstede, of Chester, N.J., was elected to a four-year term.

Kurt is founder, owner and general manager of Alstede Farms, LLC, a 600-acre vertically integrated fruit and vegetable operation.

James Robbins II, of Searsmont, Maine, was elected to a four-year term. James is president of Robbins Lumber Inc., a fully integrated sawmill which manages 27,000 acres of timberland.

for your chance to win.

Looking for local farm products?

Are you looking for fresh, quality farm products in your local area? Visit Farm Credit East’s Farm Fresh Guide!

FarmCreditEast.com/FarmFreshGuide

In other regions, Peter Call, president of My-T Acres, Inc., a vegetable and grain operation in Batavia, N.Y., was reelected to a four-year term. Laurie Griffen, co-owner and operator of Saratoga Sod Farm in Stillwater, N.Y., was also reelected to a four-year term.

In April, the Board reelected Matthew Beaton, of Wareham, Mass., as its chair, and Laurie Griffen, of Stillwater, N.Y., as vice chair.

Congratulations to the winning candidates, and thank you to our customermembers for voting and to our nominating committee for providing an excellent slate of candidates.

For more information on Farm Credit East’s Board of Directors, visit FarmCreditEast.com/Board.

Grant Resources Available

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In addition to providing grant writing services, Farm Credit East has also compiled a report that lists grants and incentives for Northeast producers.

Learn more: FarmCreditEast.com/grants

funding is available for business planning, benchmarking and profitability analysis. The grant covers 80% of the cost, up to $5,000, for a business consultant to work with you to develop a plan for your farm.

New York Dairy Acceleration Program The goal of this program is to enhance the viability of New York dairy farms. Grant

The program is funded by New York State and administered by Cornell University’s PRO-DAIRY program. Funding can also be used for environmental project planning,

FINANCIAL PARTNER

assistance with financial recordkeeping, and continued work with a business consultant to implement your business plan.

Contact your local Farm Credit East business consultant to apply. To be eligible, you must be shipping milk in New York.

For more information, visit: https://prodairy. cals.cornell.edu/dairy-acceleration/

MADE IN AGRICULTURE

CEO’s MESSAGE

Bill Lipinski, CEO, Farm Credit East In June, Farm Credit East was pleased to

The same is true in the forest products and

This issue of Financial Partner

launch a new brand advertising campaign

fishing sectors. As a lender and financial

highlights examples of customers who

titled, “Made in Agriculture.” This new

services provider built for the industries

capture the spirit of what it means to be

campaign builds on its predecessor

we serve, we have that same resilience and

Made in Agriculture. One of the keys to

campaign, “We Are You,” to emphasize our

commitment to serving our customers.

long-term success in agriculture is the

commitment to the farmers, commercial

We’re proud to provide specialized products

ability to adapt and innovate. With the

fishermen and forest products producers

and services and above all, the industry

fast-changing business environment and

that we serve, along with the communities

expertise our customers value.

evolving consumer tastes and preferences,

in which they operate.

the craft beverage businesses featured in this issue have spotted emerging

Farm Credit was founded specifically to

opportunities and figured out how to

serve the credit needs of agriculture. Just

capitalize on them.

like the producers we serve, we’ve evolved our business over the last century, but we’ve

The ability to take advantage of trends

never strayed from our founding mission.

is exemplified among the farm breweries, cideries and distilleries that are relatively

We’ve developed new products over

new to the craft beverage market, as well

the years, including financial services

as hundreds of wineries across our territory

such as record-keeping, tax planning

that have been an integral part of Northeast

and consulting, to help producers stay in

agriculture for decades. These pioneers in

compliance and make informed business decisions. We’ve also developed programs

the craft beverage space have excelled at As we transition from one campaign

growing and adapting their businesses to

to support the financial and management

to the other, it occurs to me that both the

needs of the next generation, including

new campaign and its predecessor say a lot

FarmStart investments and GenerationNext

about Farm Credit East as an organization.

training. All of these products were

The We Are You campaign emphasized our

a great way for producers to connect with

uniquely built to serve the needs of those

cooperative roots and our understanding

consumers to help them appreciate all that

operating in agriculture, forest products and

of customer needs because we work and

Northeast agriculture has to offer. As we

commercial fishing — they were made in

live alongside them in rural communities

enter the heart of the growing season across

agriculture.

across the Northeast. Made in Agriculture

the region, we hope that our new campaign

changing market conditions over time.

The craft beverage industry has been

is a logical extension of that campaign. It

shows the pride we take in serving

The campaign is also intended to

builds upon our commitment to our mission

Northeast agriculture, forest products and

communicate what it means to be Made

and the bonds we share with our customers.

commercial fishing because like you, we’re

in Agriculture. Because of the nature of

Similar to a “Made in USA” product label, it

proud to be Made in Agriculture.

agricultural work, our customers have to be

invokes the pride and values associated with

resilient and committed for the long term.

our rural community roots.

SUMMER 2019

3

Growth of the

Craft Beverage Industry in the Northeast

Over the past decade, the Northeast has seen a significant boom in the craft beverage industry – from cideries to breweries, and even distilleries producing spirits from farm-grown products.

But, we’d be remiss to overlook the pioneers in this “farm-to-bottle” movement — the wine industry.

Let’s take a step back in time, to about four decades ago. In the early 1970s, there were hundreds of grape growers throughout the state of New York, but just over a dozen large-scale wineries.

The majority of the state’s grapes were sold to a few large wine companies, and as some of those companies were bought by even larger distributors, it put pressure on prices.

Additionally, competition from imported wine was increasing. The region’s grape growers were facing crisis.

One solution was for the growers to start producing their own wine. However, laws dating back to Prohibition prohibited wineries from selling direct to consumers. These laws required a winery to sell 95% of its production through a distributor or wholesaler.

The solution came in the form of the New York Farm Winery Act of 1976. Backed by

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FINANCIAL PARTNER

N AU T I S P I R I T S NAUTISPIRITS.COM

Located in Cape May, NJ, Nauti Spirits was founded

by Steve Miller, an attorney based in Washington D.C. who had a fascination with the art and science behind distilling and the higher qualitative difference of farm-distilled spirits. So in 2012, he began his search for land in an area that held strong ties to his youth and to agriculture. Five years later, Nauti Spirits opened its doors on 60 acres of preserved farmland.

To be a licensed distillery on preserved farmland in New Jersey, at least 51% of all production must come from what is grown on the farm or on land controlled by the farm owner. Steve says they far exceed that. “What we don’t grow on site, we either grow on leased farmland or source from farms within 45 miles of our distillery – except for the molasses that we use for our rum, since sugarcane is not grown in the Northeast.” Nauti Spirits vodka is produced from homegrown sweet potatoes and corn, the gin base is 100% New Jersey grown wheat, and the bourbon is made from local corn, rye and malted barley.

SUMMER 2018

5

a team of grape growers, this act was signed

producers, accounting for 11% of total U.S.

consultant and director of the Winery

into law by New York Governor Hugh Carey

production, according to a study by Cornell

Benchmarks program.

in June 1976. It reduced licensing costs,

University. Today, all Northeast states have

eliminated restrictions on direct-to-consumer

passed some form of craft beverage legislation.

sales, and provided tax and marketing advantages. Most importantly, it led to the birth of the region’s small-scale wineries.

Today, there are more than 400 wineries across New York State.

industries that are tapping into the success of

We recently spoke with industry experts and

the wine industry,” Gregg continued. “They’re

entrepreneurs in the various craft beverage

opening up along existing wine trails or in

sectors to learn more about the trends they’re

major population centers and can tap into the

seeing and how businesses are evolving to

same visitor streams and capture on that same

differentiate themselves in the marketplace.

excitement of local food and beverage.”

Following suit, Connecticut passed a similar

These businesses are taking unique

law in 1980 and then New Jersey in 1981.

approaches to marketing their products and

Interestingly, New Hampshire was actually

growing their businesses, all while staying

the first Northeast state to pass legislation

true to their farm roots.

cutting some of the red tape for farm wineries

“Now there’s a proliferation of other beverage

Lindsey Pashow, agriculture business development and marketing specialist with Cornell’s Harvest New York program, can attest to this recent growth in the cider industry. “Five

but didn’t have the same mass of growers.

GROWTH OF THE CRAFT BEVERAGE INDUSTRY

years ago, you’d go to a restaurant and hard

Each of these laws aimed to ease Prohibition-

The 1970’s farm winery legislation kick-

era restrictions and facilitate the growth of

where hard cider goes at a premium.”

started the modern small beverage

the regional wine industry. There are more

movement. However, the Northeast wine

than 700 wineries across the Northeast today.

industry didn’t gain its footing overnight.

Three decades later, New York signed into law

“There needed to be enough wineries in

similar legislation for farm distilleries (2007),

important boost to the craft beverage

close proximity to make tourism possible.

and later farm breweries (2012) and hard

industry,” said Sam Filler, executive director

It took three decades to build up a critical

cideries (2013). 2014’s Craft New York Act

of the New York Wine & Grape Foundation.

mass of winery businesses in our region, and

further eased regulations to benefit the small

“In New York, the state government offered

that concentration is necessary for tourism

craft beverage industry. As a result of these

craft beverage producers a one-stop shop to

to be a fun, exciting thing to do,” said Gregg

pioneering efforts, the Empire State ranks first

have their questions answered.”

McConnell, Farm Credit East business

cider wasn’t even on tap. Now, there’s places

“The clarification and modernization of regulations to be more sensible for today’s business practices have been a really

in the nation for the number of hard cider

N O RT H F O R K B R E W I N G C O. N O RT H F O R K B R E W I N G C O. C O M

With backgrounds in brewing, chemistry and farming, Peter Barraud and Ian Van Bourgondien opened North Fork Brewing Co. in Riverhead, NY, in 2018. In addition to growing their own hops on their family’s farm, Ian’s background in brewers’ yeast enables him to cultivate local, wild and unique strains of yeast to use in their beers. For example, he’s able to cultivate yeast that came from blackberries grown on the farm. “We’re able to make very unique beers that add an additional local element,” said Ian. New York farm breweries are required to source up to 60% of ingredients locally, but Ian says some of their beers actually incorporate 100% local ingredients, with all of the hops grown on their farm and barley sourced from upstate New York.

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The name says it all. “We chose the name because we wanted to be indicative of our region,” said Ian. “We wanted to make a great local product that featured produce from the only area on Long Island that is still in production agriculture, yet still make it feel very welcome to those who visit.”

FINANCIAL PARTNER

INTEREST IN LOCALLY GROWN There’s no doubt the buy local movement has been a tremendous driver for the craft beverage industry. “Early successes in the wine industry got people excited, and now the

BAD SEED C I D E R C O M PA N Y BADSEEDHARDCIDER.COM

local food movement has stoked the beverage industry,” said Gregg McConnell. “People are rediscovering their food and beverages.”

The local movement is a key driver for Nauti Spirits, located in Cape May, NJ, as it is for many of the farm craft beverage producers we spoke with. “The tourism that comes through our area lives on the farm-to-table, farm-tobottle concept,” said Patti Goyette, marketing and events manager at Nauti Spirits.

Even more than just interest in locally produced products, people are interested in discovering

Albert Wilklow is the sixth generation of his family’s farm, and together with his friend Devin, began making cider as a hobby using apples grown on the family farm in Highland, NY. In 2011, they decided to market that product under the name Bad Seed Cider Company. Their cider really got its start at New York City greenmarkets. “That’s how we found our distributors and we received some great write-ups in the press,” said Albert.

something new. Diversifying product offerings is one way many craft beverage producers are differentiating their products in the marketplace. “That’s why tasting rooms remain important. Consumers can sample limited production products in tasting rooms to stay in the know,” said Sam Filler.

At Three Brothers Winery, that diversification has always been a focus.

“From the day we opened, people were asking for beer,” said Erica Paolicelli, part

Nearly a decade later, Bad Seed Cider ventured away from its greenmarket roots and opened a tap room in Brooklyn in 2017. This tap room is in addition to their refurbished barn tap room on the 60-acre Hudson Valley farm.

And last year they opened their third, seasonal tap room built out of a shipping container.

That’s open in September and October alongside the farm’s apple-picking orchard.

owner of the winery. “In 2009, we opened a brewery tap room and experimented with beer and cider. It was popular because we could offer something for everyone.”

Most recently, the winery began offering a hard seltzer. “Diversification is an important tool for us,” continued Erica. “If there’s a bad year for our grapes, we have beer or cider to fall back on.”

From the get-go, their focus has been on dry cider. “Our goal was to market more toward the beer crowd with drier varieties in 12oz. packaging,” said Albert. “When we first got started, people wouldn’t know what cider was.

Now people are starting to look for cider, and dry cider at that.”

DIRECT-TO-CONSUMER EXPERIENCE Most craft beverage producers remain focused on selling direct to their consumers.

“At one point, we sold our products from Maine to the Carolinas, but after a decade of expanding distribution, we switched

“At the same time, cider has so many different flavors but it’s all just called ‘cider.’ So the market is really starting to hone in on what cider is, and it’s exciting to see that start to take shape.”

our focus to our local community,” said Bill Russell, owner of Buzzards Bay Brewing.

“We wanted to be part of the neighborhood in a more significant way, so we made a commitment to switch our focus. Now, with a few exceptions, you can only find our beers within 30 miles of our brewery.”

SUMMER 2019

7

THREE BROTHERS WINERIES & E S TAT E S

This direct-to-consumer marketing allows

3 B R O T H E R S W I N E RY. C O M

tasting room, and I think that’s true across

craft beverage producers to maintain the control of their product. It also enables them to create an experience for their consumer — another differentiator. “It’s often still the owners or the wine makers working the all the categories. That offers consumers a personal relationship with the person making their product,” said Sam Filler.

Three Brothers Winery is home to three separate wineries that are each themed

Erica Paolicelli, part owner of Three Brothers Winery, stumbled into a growing winery business during a semester home from college.

At the time, the site had only a 10-by-10 foot tasting shack on the northeast end of Seneca Lake, but owners Dave and his wife Luanne had a vision — and a progressive vision at that. They began building three unique tasting rooms on premises, and just over a decade later, their site in Geneva, NY, is home to seven buildings, including War Horse Brewing Co. that opened two years ago.

differently. There are photo opportunities around the property and people share those photos captured while visiting on social media, which helps spread the word. “People trust other people and we’ve really used that to our full advantage,” said Erica Paolicelli.

At North Fork Brewing, co-owner Ian Van Bourgondien said they’re focused on the consumer experience. “We have the most control over our products by serving them in house, and that consumer relations is a

“The idea to have three wineries in one location is pretty unique,” said Erica.

“But Dave knew that people wanted to go somewhere that was more concentrated. He also ensured that each of our three wineries offered something different.”

real benefit.”

BENEFIT TO LOCAL ECONOMIES Beyond the growth of the wineries, distilleries, cideries and breweries themselves, these businesses are also having positive impacts on their local communities.

“Over the last 12 years, Geneva has come full circle as a tourist community,”

With that progressive mindset, the winery has always been focused on the diversity of their portfolio. In addition to their wines, they also brew their own beer and make their own hard cider, hard seltzer water and a wine spritzer on premises. “There’s an expectation that something is going to be new each year,” said Erica. “So expanding our production is how we’ve offered that.”

commented Erica Paolicelli.

Down on Long Island, North Fork Brewing is seeing a similar community build up around the craft beverage industry. “There’s auxiliary businesses starting up as a result of the growing brewery scene, including a bike tour company that started five years ago,” said Ian Van Bourgondien.

“The craft beverage industry is an important employer and an important tourism driver, attracting outside visitors and outside dollars. That’s the greater community development impact,” said Sam Filler.

According to data from Wine America, here in the Northeast, there are just over 700 wineries. These businesses contribute, directly and indirectly, more than $6.6 billion to their local economies and support thousands of

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FINANCIAL PARTNER

B UZ Z A R D S B AY B R E W I N G B U Z Z A R D S B R E W. C O M

The Russell family began making wine in 1989. Their focus was on farming the land for its flavor and they were intrigued by how unique, local flavors could differentiate their wine from other regions. But, son Bill was also fascinated with brewing. In the late ‘90s, his parents and brother got behind his passion and experimentation to break ground for Buzzards Bay Brewing in Westport, Mass.

Bill said they’ve had a bit of trial and error over the years, from experimenting with growing their own hops to growing different grain varieties. They’ve also experimented with different types of beer, learning that the customers in their backyard don’t have the same palate as the customers in Boston. After 21 years, they’re pleased to be able to explore local flavors in their beers, especially due to the proliferation of malt houses throughout New England.

Westport Rivers Winery and Buzzards Bay Brewing continue to complement each other, and their focus remains on the local neighborhood. “We’re in a community of hardworking farmers and fishermen who, at the end of a hard day’s work, enjoy delicious, easy-drinking beer, so that’s the refreshing type of beer we produce.”

IT STARTS AT THE FARM

jobs, according to Farm Credit East’s Northeast

On Long Island, North Fork Brewing co-

Economic Engine report. Similarly, a recent

owner Peter Barraud worked in a neighboring

Cornell University study found that New York

brewery to gain extra experience, on top of

Of all the craft beverage entrepreneurs we

hard cider producers contributed $44 million

several years of prior experience brewing

spoke with, they couldn’t stress enough the

in direct economic impacts.

in New Hampshire, before opening. “We’re

importance of their farm roots. “We’re proud

all working together to help each other out

to be part of a farming family and we always

because if we don’t support each other, then

try to source local ingredients. We also try

The craft beverage producers we spoke

we’re just putting each other out of business,”

to feature other farms when we can so that

to pointed out the value of concentration.

said Ian Van Bourgondien.

people get a real taste of the North Fork,”

None saw their neighbors as competition

In New Jersey, that same comradery exists

or expressed concern over the growing

among the wineries, breweries, distilleries

Nauti Spirits chose its location specifically

selection in the marketplace. If anything,

and even local restaurants. “We’ve

because of its farm roots. “We wanted to

they affirmed that the concentration of other

collaborated with a local brewery and some

be in South Jersey because of its strong

similar businesses was a benefit, and that

restaurants are combining our spirits with

agricultural tradition that most people don’t

there’s even room for more.

local wine to make cocktails on their menus.

realize when they think of New Jersey,” said

“We were one of five cideries in New York

It’s an up-and-coming, exciting avenue of

owner Steve Miller. “I don’t think we would

State when we first got started, and now

production and we’re all working together,”

have started this distillery if we couldn’t do it

there’s over 100,” said Albert Wilklow, owner

said Patti Goyette.

on farmland because producing spirits from

of Bad Seed Cider Company. “The Hudson

“Taprooms create a consumer experience

Valley is being recognized as a destination for

creates such a marked difference qualitatively

where it’s as much about enjoying a beer as it

cider, and much of our taproom business is

and experientially.”

is about sharing conversation,” said Bill Russell.

resulting from the concentration of cideries

“We’re not just brewing beer, we are brewing

in our area. It’s an exciting avenue for the

community, and when other local craft

apple industry.”

beverage producers do well, we all rise up.”

CRAFT BEVERAGE COMMUNITY

said Ian Van Bourgondien.

crops you’ve grown on site or sourced locally

SUMMER 2019

9

FARM CREDIT EAST PARTNERS WITH

C A SE t o Suppor t t he Nex t Gener a t ion o f Indus t r y L eader s When Farm Credit East celebrated its centennial in 2016, the Board of Directors wanted to mark that important milestone with an investment in the future of Northeast agriculture. They delivered on that goal by announcing a major financial commitment to agricultural education at the 2016 annual meeting. Thus marked the beginning of a strategic partnership between Farm Credit East and the Curriculum for Agricultural Science Education (CASE).

CASE is a project of the National Association of Agricultural Educators (NAAE) and seeks to enhance secondary agricultural education using hands-on learning that integrates Science, Technology, Engineering and Math (STEM) principles.

CASE has several pathways that build upon the base course, Introduction to Agriculture, Food and Natural Resources (AFNR). After taking AFNR, students can take courses in subjects like Plant Science, Animal Science and Agricultural Power and Technology. Teachers become certified to teach these courses by attending CASE institutes.

Since 2016, Farm Credit East has partnered with CASE on two important initiatives.

Given that the cost to attend institutes can be a barrier for schools to use CASE, Farm Credit East began offering scholarships to ag teachers to help defray the attendance cost.

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FINANCIAL PARTNER

Over the past four years, Farm Credit East has provided almost $64,000 to help certify 71 educators to teach CASE courses.

The other major initiative is the development of a new CASE Agricultural Business Foundations course. Contributions from Farm Credit East, as well as the New Jersey Agricultural Leadership fund (created in memory of Farm Credit East employee Joshua Geary), provided the funding to design the course, and we also provided input on the course’s content.

The new curriculum, piloted in the 201819 school year, is designed to be incorporated into an existing CASE course or offered independently as a one-semester course. Feedback from teachers that reviewed the Agricultural Business Foundations course has been very positive (see sidebar). This summer, 80 teachers throughout New York and New Jersey will be trained to instruct the course.

Training sessions will also be held at six other locations across the U.S. Supporting CASE is just one way Farm Credit East is committed to the future of Northeast agriculture. Regardless of ag students’ future career paths, the CASE program will help prepare these future industry leaders for a bright future, and Farm Credit East is proud to be a part of that.

He a r w ha t pilo t t e acher s o f t he A gr icul t ur a l Bu sine s s F ounda t ions c our se had t o s a y “The course provides students an opportunity to develop a solid foundation in agricultural business concepts and skills, which will be invaluable for many of these students as they move forward into college and careers. I have received great feedback from students that are using the curriculum. One student recently commented, ‘I didn’t think I would like the agriculture business lessons, but they are starting to grow on me!

I thought it would be really hard and boring, but this really makes sense to me.’”

– NY teacher

“Overall, I think the rigor in this business course is higher than anything I have seen from an ag business curriculum! ” – Iowa teacher

“I am excited for this curriculum.

I like it a lot! It makes me want to enter a high school classroom again! That is exciting! I think that this curriculum will do a great job teaching students about agricultural business in a project based/hands-on way.”

– NY teacher

“

FARM CREDIT EAST PARTNERS WITH

The refinance was simple. Most banks don’t know how to handle farm buildings or extra land.

”

–Donald Fish

Donald Fish with his granddaughter on his farm in Bolton, Conn.

D

Purchasing a Dream Farm

onald and Sharon Fish own and operate Fish Family Farm. This 211-acre farm located in Bolton, Conn., is home to a herd of Jersey cows. The milk is bottled in old-fashioned glass bottles and sold in their retail farm store along with ice cream, cheese and other products. Don also owns DW Fish Real Estate.

Don says he picked the farm out when he was six years old. It was his dream to own it one day and he was fortunate to make that dream a reality in 1981. The property also includes a farmhouse built in the 18th century where Don and his wife Sharon raised their children.

Living from Farm Credit East. “The refinance was simple,” said Don. “Most banks don’t know how to handle farm buildings or extra land.”

Above all, Don is appreciative. “If you have a dream for something at six years old, and you get a chance to buy it, you’ve got to be pretty appreciative, and I am.” To keep the family tradition, Don and Sharon will one day leave their dream property to their three daughters.

CountryLivingLoans.com Farm Credit East NMLS No. 522993

Nearly four decades later, Don and Sharon refinanced their part-time farm through Country SUMMER 2019

11

Farm Credit East Staff in the Community Just as Farm Credit East was made in agriculture, so are our employees.

More than just assisting our customers with their day-to-day credit and financial services needs, staff are committed to helping the rural communities, in which they both work and live, thrive. In some cases, this includes providing financial support to community organizations, and at other times, staff look forward to opportunities to work hands-on. Here are a few examples of staff jumping in to help out in the local community.

This spring, sta ff me

mbers from Farm Cr edit East’s Br idgeto n, NJ, off ice tournament that be nefitted the Woodsto Business Associatio wn Pilesgrove n, a community orga nization that works area businesses. Sta to pr omote ff had a great time rai sing money for a loc and two of the team’ al charity s members blasted home ru ns out of the park! played in a softball

eck d n o n to Bridge

Farm Credit East’s Cortland, NY, office y participated in the Cortland County Dair float the ned desig Parade in early June. Staff in honor of the 50th Anniversary of the for moon landing — “That’s one smal l step a cow, one giant leap for dairy!” Staff were excited to win Best Busi ness Float.

Cortland 12

FINANCIAL PARTNER

blasts of f for dai ry

In Apr il, staff from the Day ville, Con n., office helped the Windham-Tolland Cou nty 4H Camp prepare for their annual tag sale fundraiser. It was the camp’s 65th fundraiser and funds raised supporte d camp activities.

Staff had a fun time digging through and sorting the many donations!

H camp 4 l a c o out at l s p l e h Dayville This June, Farm Credit East’s Middletown, NY, office participated in its ninth Relay for Life event to support the American Cancer Society.

In total, friends, family and customers generously contributed almost $6,000 toward cancer research and to increase awareness. Overall, this year’s event raised over $100,000! At the event, the Middletown team also scooped delicious ice cream for attendees to make their own sundaes.

s forward to , off ice look Y N , am d ts Dairy East’s Po nce Cou nty Farm Credit al St. Lawre u n for an e th g in e was “Mil k par ticipatin is year’s them h T . ar ye d to inclu e ade each many ways Pri ncess Par e th t u o ab d the public ra-f iltered an A ll” to in form ose-free, u lt ct la m o fr d he Pots am r diets — ice cream. T m il k in thei d an rt gu to cheese, yo place in the whole m il k, to win first at o fl s it r cited fo team was ex division ! com mercial

Middletow n su cancer res pports earch

Potsdam celebrates dairy month with “Milk for All” The Presque Isle, Maine, office was pleased to donate two bikes as part of a local effort to give bikes to children who may not otherwise have the opportunity to own one. Thanks to the generosity of the

es bicycles t a n o d e l s I Presque

community, over 100 bikes were donated to area children!

SUMMER 2019

13

WASHINGTON Update

Tom Cosgrove Senior Vice President for Public Affairs

A STORMY SPRING:

WEATHER, TRADE POLICY AND DISASTER ASSISTANCE By all accounts it is has been a

Signals out of Washington have been as

TRADE

challenging spring in farm country. While

unpredictable as the weather, with a mixture

it’s difficult to characterize weather across

of positive and negative developments

trade policy will change by the time this issue

all seven states of Farm Credit East’s service

on trade. Policymakers sought to provide

of Financial Partner arrives, but there were

territory, in general, it was a late, wet spring.

producers with relief for losses related

a number of noteworthy developments this

And as bad as weather was in the Northeast,

to both trade and weather with USDA

spring. With the breakdown of negotiations

it has been worse in many other regions.

announcing another round of trade-related

for a broader trade deal between China and

With excessive rainfall and disastrous

assistance. Additionally, Congress passed a

the U.S. on May 10, the U.S. announced it

flooding in many parts of the Great Plains

disaster relief bill that included assistance for

would raise tariffs from 10% to 25% on $200

and Midwest, national planting progress is

producers impacted by last fall’s hurricanes

billion of Chinese imports. China responded

well behind the five-year average.

and wildfires and this spring’s flooding.

by announcing it would impose additional

It is very possible that the situation on

A TURBULENT MONTH IN THE WORLD OF TRADE POLICY MAY 10, 2019 • Extensive trade talks with China ended without an agreement • The Trump Administration raised the tariffs on another $200 billion in Chinese imports from 10% to 25%

MILK PRICE December Class III Futures 14

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$16.31

MAY 13, 2019 • China announced new tariffs on $60 billion of American exports o Additional tariffs on another $300 billion in Chinese goods were being considered, pending a USTR hearing and a public comment period

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• The Trump Administration subsequently announced another Market Facilitation Program with direct payments of $14.5 billion, plus another $1.6 billion in related aid, to further offset the impact of the tariffs on the American farmer

retaliatory tariffs on a number of U.S. food and agricultural products.

Following these developments, USDA

returned in June, the $19.1 billion bill,

As seen with the immigration related tariffs with Mexico, tariffs, or the threat of

which included $3 billion in assistance for

them, can be removed as quickly as they are

farmers, was overwhelmingly passed and

announced it would provide another round

announced. At times, these policy changes are

signed by the President.

of trade assistance for agricultural producers

announced in conjunction with major farm

impacted by the retaliatory tariffs. Many

product purchases, sending commodity prices

details are still being determined, but the $16

higher or lower, depending on the news.

OUTLOOK FOR THE REMAINDER OF 2019 While many of the recent severe weather events did not directly impact the

billion in trade assistance package has several components. A total of $14.5 billion will be direct payments to producers through the

DISASTER ASSISTANCE

Northeast, the resulting production shifts

Since the new Congress began in January,

and losses will impact market prices for

Market Facilitation Program, similar to the

it has been debating disaster assistance

inputs, crop and livestock products in the

one administered in 2018. The package also

for producers in the Southeast affected

Northeast. The same goes for trade.

includes $1.4 billion for food purchases and

by last fall’s hurricanes as well as Western

$100 million in export and trade promotion.

producers impacted by wildfires. This spring,

Farm Credit East’s Knowledge Exchange

As outlined in the April 2019 issue of

the legislation was expanded to include

Partner newsletter, about 20% of all

announcement that the steel and aluminum

producers impacted by the devastating

U.S. agricultural products are exported,

tariffs on imports from Canada and Mexico

spring weather in the Great Plains and

including an estimated 15% of Northeast

would be removed, paving the way for

Midwest. In many areas, the floods not only

production. But even for producers whose

Canada and Mexico to drop retaliatory tariffs

made it impossible to plant, but destroyed

output isn’t exported, almost all farm prices

on agricultural products. Many supporters

stored crops. Unlike the trade assistance

are impacted by international trade given

hoped this action might provide momentum

program, the disaster assistance bill will

that global markets impact the prices for

for legislative approval for the US Mexico

permit USDA to provide additional aid for

many Northeast products.

Canada Agreement (USMCA).

prevented planting, though it is unclear how

Later in May, there was a much welcomed

International trade is critical for

much or how it relates to producers who will

Northeast agriculture, forest products and

with Mexico was quickly followed by an

be eligible for payments under prevented

commercial fishing, and producers, and the

announcement that the administration would

planting crop insurance coverage.

entire industry, deserve policy certainty

This piece of positive trade news

impose a 5% tariff on goods from Mexico

This legislation had a rocky journey to

and stability in order to maintain the market

because it wasn’t doing enough to stop illegal

completion as it was held up for a time by

access needed to be successful. Predicting

immigration into the U.S. This tariff could

the Administration’s opposition to additional

what’s going to happen in trade policy for

then be increased each month by 5% until

assistance for Puerto Rico. It looked like it

the remainder of 2019 is about as difficult as

it reached 25%, however these tariffs were

was headed for final passage in the House

forecasting the weather, but here’s hoping

canceled just before they were to go into

over Memorial Day recess, but didn’t pass

that both trade policy and the weather are

effect in early June.

over the objections of members of the

less volatile for the remainder of 2019.

House Freedom Caucus. When Congress

MAY 20, 2019 • U.S. lifted the steel and aluminum tariffs on Canada and Mexico • Mexico lifted tariffs on U.S. steel, pork, cheese, whiskey and apples, among other goods, that had been imposed on June 5, 2018 • Canada lifted tariffs that were imposed on July 1, 2018

$16.51

o Value of the Canadian tariffs were set to match the value of the U.S. tariffs dollar-for-dollar and cover 299 U.S. goods o Products: steel, aluminum and a variety of other products, including inflatable boats, yogurt, whiskies, candles and sleeping bags

MAY 30, 2019 • The Trump Administration announced its intention to impose a 5% tariff on all

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imports from Mexico beginning on June 10, with tariffs increasing to 10% on July 1, and by another 5% each month for three months

JUNE 7, 2019 • The Trump Administration announced a deal with Mexico to avert the threatened tariffs on imports from Mexico in exchange for Mexico taking additional measures to curb illegal immigration to the U.S.

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SUMMER 2019

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3 NEW YORK FARM RECOGNIZED NATIONALLY FOR ENVIRONMENTAL STEWARDSHIP EFFORTS Earlier this year, Thunder View Farms LLC located in Grahamsville,

business committed to preserving and protecting the environment and

NY, was honored with the National Cattlemen’s Beef Association

land around it.”

Environmental Stewardship award. Established in 1991, this award recognizes outstanding land stewards in the cattle industry.

this award in the region and the first-ever eastern region operation to

Owned by brothers Philip and Richard Coombe, Thunder View Farms,

win nationally. Ric said that while this recognition is exciting for their

a registered Angus cow-calf producer, began in 1958. The farm raises

farm, it’s really a win for the New York cattle business.

and markets purebred breeding animals, both heifers and bulls, and also provides premium grass fed, corn finished beef directly to consumers from New York City to Albany.

The founders remain involved in the day-to-day operations, but today, the farm is managed by its third generation, Ric Coombe. Needless to say, the farm is truly a family operation, with the fourth generation also becoming involved.

“That’s what makes it go,” said Ric.

“

“It brings recognition to the quality of the cattle and the beef producers in general in the state of New York,” said Ric. “It’s also a win for the Watershed Agricultural Program

We’ve always had good faith and trust in Farm Credit, knowing that we were working with a lender who understands our business.

The farm was founded with the notion to not only preserve the land, but to do so

16

Thunder View Farms is only the second New York operation to win

”

and their protection of New York City’s drinking water. This honor is just part of the growing overall health of our operation and the health of agriculture throughout the region, and we’re pleased to be a part of that.”

Farm Credit East is pleased to recognize Thunder View Farms for this honor. Over the past 30 years,

in a way that the business could be successfully transferred to future

our working relationship has provided the farm with access to capital

generations. “We have worked hard to make sure that we’re able to do

for both operating and expansion projects. Ric said, “We’ve always had

both,” said Ric. “You can successfully transfer assets, but we also have

good faith and trust in Farm Credit, knowing that we were working

to successfully transfer the passion for raising quality cattle and a viable

with a lender who understands our business.”

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MEET OUR SCHOLARSHIP WINNERS

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

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

CONNECTICUT

G AB R I E L L E G U I L L E M E T T E Lyman, Maine

A DA M L U CH O N Willington, Conn.

UNIVERSITY OF MAINE MAJOR: FORESTRY CAREER PATH: FORESTER

Adam’s early education in forest management practices and concentration in natural resources has led him to pursue a career in forestry.

MAD I S O N S I M O N D S East Canaan, Conn.

UNIVERSITY OF VERMONT MAJOR: VETERINARY SCIENCES AND FOOD SYSTEMS CAREER PATH: LARGE ANIMAL VETERINARIAN

Madison plans a career as a large animal veterinarian with a desire to also assist in implementing policy and change to help producers nationwide.

E M I LY SYM E Broad Brook, Conn.

UNIVERSITY OF CONNECTICUT MAJOR: PLANT SCIENCE CAREER PATH: PLANT PATHOLOGY

Recognizing the importance of crop productivity research and teaching its practical application to producers, Emily aims to be a production agriculture consultant.

UNIVERSITY OF MAINE MAJOR: ANIMAL AND VETERINARY SCIENCES CAREER PATH: LARGE ANIMAL VETERINARIAN

After graduation, Gabbie plans to specialize in large animal reproductive health as she works towards her goal of owning her own practice.

MASSACHUSETTS

CAR I NA K I L D U F F Canton, Mass.

UNIVERSITY OF ILLINOIS COLLEGE OF VETERINARY MEDICINE MAJOR: VETERINARY SCIENCE CAREER PATH: LARGE ANIMAL VETERINARIAN

Carina’s ag education helped develop her love for animals. Her career goal is to open her own practice to provide affordable animal care.

G R E G O RY N O R R I S Westhampton, Mass.

PENNSYLVANIA STATE UNIVERSITY MAJOR: ANIMAL SCIENCE CAREER PATH: DAIRY PRODUCTION AND MANAGEMENT

Greg hopes to combine his two interests, animal science and business, as he works toward a career supporting the profitability of dairy farms.

NEW HAMPSHIRE

MAINE

K R I S T E N DAV I S New Sharon, Maine HUSSON UNIVERSITY MAJOR: MARKETING COMMUNICATIONS CAREER PATH: AGRICULTURAL MARKETING

Kristen hopes to use her degree in marketing communications to improve the connection between consumers and agricultural goods.

CAR O L I N E C R O U C H Loudon, NH SUNY COBLESKILL MAJOR: AGRICULTURAL BUSINESS CAREER PATH: AGRICULTURAL TEACHER

Her own education in agriculture sparked Caroline’s dream to pursue a career in ag education. She hopes to inspire youth in agriculture as well as manage her own sheep farm.

SUMMER 2019

17

TAY LO R D O R S EY

J O S H UA BAI L E Y

Milford, NH

Williamson, NY

UNIVERSITY OF KENTUCKY MAJOR: EQUINE SCIENCE CAREER PATH: LARGE ANIMAL VETERINARIAN

SUNY COBLESKILL MAJOR: AGRICULTURAL SCIENCE AND AGRIBUSINESS CAREER PATH: FRUIT FARM OWNER/MANAGER

Working on the farm since she was five, Taylor found her passion for working with animals. She plans a career in large animal medicine.

E M MA M I N E R

H AR R I S O N B R OWN

Merrimack, NH

Waterport, NY

UNIVERSITY OF NEW HAMPSHIRE MAJOR: ANIMAL SCIENCE CAREER PATH: LARGE ANIMAL VETERINARIAN

CORNELL UNIVERSITY MAJOR: AGRICULTURAL SCIENCE CAREER PATH: FRUIT FARM OWNER/MANAGER

Emma hopes to apply her education and hands-on experience in animal science and veterinary medicine to a career as a large animal veterinarian.

NEW JERSEY

S I E R RA E ACH U S Elmer, NJ CUMBERLAND COUNTY COLLEGE MAJOR: AGRICULTURAL BUSINESS CAREER PATH: DAIRY FARM OWNER/MANAGER

Sierra hopes to apply her agribusiness education to a career on her family’s dairy farm, where she plans a career as both owner and herd manager.

E VA N M CI NT I R E Shamong, NJ MAINE MARITIME ACADEMY MAJOR: MARINE TRANSPORTATION OPERATIONS CAREER PATH: COMMERCIAL FISHING

Growing up in Cape May on his grandfather’s charter boat, Evan knew he wanted to spend his life on the water. He aspires to become captain of a commercial fishing vessel.

S A R A M EYE R Pittstown, NJ RUTGERS UNIVERSITY MAJOR: BUSINESS CAREER PATH: AGRIBUSINESS

Sara is working toward a career in agribusiness, managing the finances of a dairy farm as well as other business entities within the dairy industry.

NEW YORK

J OH N AUWAE RT E R Blue Point, NY FARMINGDALE STATE COLLEGE MAJOR: HORTICULTURE TECHNOLOGY MANAGEMENT CAREER PATH: GARDEN CENTER OWNER/MANAGER

Ever since he was young, John knew he wanted to pursue a career in horticulture. He hopes to return home as a partner in his family’s retail garden center.

18

Josh hopes to apply his education in agricultural science and agribusiness to a career in the apple production industry.

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Harrison, an eighth-generation fruit farmer, plans to bring progressive strategies and ideas back to his family operation to help its continued growth.

FAI TH C L AN CY New Woodstock, NY SUNY COBLESKILL MAJOR: AGRICULTURAL BUSINESS MANAGEMENT CAREER PATH: AGRIBUSINESS

Faith hopes to pursue a career in sales, marketing or finance to assist those working in the agriculture industry.

K E N N E DY CR OTH E R S Pitcher, NY VIRGINIA TECH MAJOR: DAIRY SCIENCE CAREER PATH: DAIRY HERDSMAN AND NUTRITIONIST

Kennedy credits her eagerness for hands-on learning and decision making to her dairy farm upbringing. That’s why she plans a career in the dairy industry.

N OA H E I S E N H A R DT Montgomery, NY PAUL SMITH’S COLLEGE MAJOR: FORESTRY TECHNOLOGY CAREER PATH: LOGGING OPERATIONS

With the goal of responsible timber management, Noah plans to operate his own logging business.

J AM E S H I C K S Rhinebeck, NY SUNY POLYTECHNIC INSTITUTE MAJOR: MECHANICAL ENGINEER CAREER PATH: AG MECHANICAL ENGINEER

At an early age, James found himself modifying agricultural equipment to make it better suited for its task. This problem solving inspired him to pursue a career to innovate and improve ag equipment.

KYL I E L E H R Canastota, NY CORNELL UNIVERSITY MAJOR: ANIMAL SCIENCE CAREER PATH: DAIRY AGRIBUSINESS

Kylie hopes to contribute to the agricultural industry by finding a career in a supportive role for production agriculture farmers.

LA R I S SA L I

AN N A S P OTH

Fresh Meadows, NY

Clarence Center, NY

DELAWARE VALLEY UNIVERSITY MAJOR: HORTICULTURE CAREER PATH: AGRICULTURAL EDUCATION AND HORTICULTURE

CORNELL UNIVERSITY MAJOR: ANIMAL SCIENCE CAREER PATH: LARGE ANIMAL VETERINARIAN

Larissa plans a career as an agricultural teacher, demonstrating the significance of horticulture to our society.

Via research, field experience and her coursework, Anna plans to build a well-rounded skillset that will enable a successful career as a large animal veterinarian.

E M I LY S TA R C E K S I

R I LE I G H M U M B U LO Edmeston, NY

Sherman, NY

SUNY MORRISVILLE MAJOR: AGRICULTURAL ENGINEERING TECHNOLOGY CAREER PATH: DAIRY FARM OWNER/MANAGER

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

With a well-rounded education and hands-on internships, Rileigh hopes to diversify her family’s eighth-generation dairy farm to include farm-to-table and agritourism.

Growing up actively involved on a dairy farm, Emily knew she was destined for a career in agriculture. She plans a hands-on career working with dairy cattle.

E L E N A S UAR E Z

A LE X I S PAYN E Glenfield, NY

Nassau, NY

SUNY COBLESKILL MAJOR: ANIMAL SCIENCE CAREER PATH: DAIRY NUTRITIONIST

CORNELL UNIVERSITY MAJOR: PLANT SCIENCE CAREER PATH: PLANT BREEDER

Alexis credits her exposure and involvement with agriculture in the classroom and FFA to her desire for a career in the dairy industry.

With her desire for a career in agricultural science, Elena hopes to develop the nutritional value of specialty crops to make them more affordable for both farmers and consumers.

CH E Y E N N E R I B B L E

G AB R I E L L E TAR B OX

Painted Post, NY

Troy, NY

PENN STATE UNIVERSITY MAJOR: ANIMAL SCIENCE CAREER PATH: LARGE ANIMAL VETERINARIAN

Inspired by the challenges that are presented when working with animals, Cheyenne hopes to return home to run a large animal veterinarian practice.

CORNELL UNIVERSITY MAJOR: ANIMAL SCIENCE CAREER PATH: AGRICULTURAL FINANCE

With a goal to preserve the link between agriculture and finance, Gabrielle is eager to start a career in agricultural lending.

M E G AN W I L M OT

A LYS SA R O O R DA Cayuta, NY

Cherry Valley, NY

CORNELL UNIVERSITY MAJOR: AGRICULTURAL EDUCATION CAREER PATH: AGRICULTURAL TEACHER

PENNSYLVANIA STATE UNIVERSITY MAJOR: ANIMAL SCIENCE CAREER PATH: LARGE ANIMAL MEDICINE

Alyssa hopes to encourage the next generation of agriculturalists to embrace the evolving ag industry through her career as an ag educator.

Megan continues to immerse herself in the knowledge and experiences that come her way through research and continued education in her pursuit of a career as a large animal veterinarian.

FARM CREDIT EAST “CHAIR SCHOLARSHIP” RECIPIENT Upon a second tier, in-depth review of the applications by Farm Credit East’s Board Chair, Farm Credit East provided an additional $1,500 scholarship to a student committed to a career in production agriculture.

The Chair Scholarship is in addition to the $1,500 Farm Credit East scholarship.

L AN E M O I R Woodland, Maine UNIVERSITY OF MAINE MAJOR: ENVIRONMENTAL SCIENCE AND SUSTAINABLE AGRICULTURE CAREER PATH: POTATO/GRAIN FARM OWNER/MANAGER

Lane, a fourth-generation farmer, plans to return to his family’s operation after graduation. He hopes his degree will support the changing industry demands in business and conservation.

TO BE A CANDIDATE FOR A 2020 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 A V A I L A B L E I N J A N U A R Y 2 0 2 0

SUMMER 2019

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FINANCIAL PARTNER is for the customers, employees and friends of Farm Credit East. Farm Credit East is a customerowned 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 and financial services provider 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 Matuszewski, Editor, Farm Credit East, 240 South Road, Enfield, CT 06082-4451 CALL: 860.741.4380 E-MAIL: kristie.matuszewski@farmcrediteast.com ©2019 by Farm Credit East, ACA. All rights reserved.

Farm Credit East is an affirmative action, equal opportunity employer.

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2020

AGRICULTURAL VIEWS CALENDAR PHOTO CONTEST Help us fill Farm Credit East’s Agricultural Views 2020 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 2020 Calendar and also earn you a $100 cash prize!

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

• Submission deadline: July 31, 2019.

NEED CREATIVE INSPIRATION? VISIT FA R M C R E D I T E A S T. C O M / C A L E N D A R

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

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