Summer 2020 Financial Partner

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FIN PA ANC RT IA NE L R S U M M E R 2 02 0

2 | News & Views

13 | Farm Credit East Cares

16 | Public Policy Update

INSIDE

3 | CEO Column

14 | New Normal For Now

17 | Scholarship Recipients

4 | Cover Story

15 | Value of Ownership

N E & W V IE S WS Farm Fresh Guide Despite the COVID-19 pandemic, Northeast agricultural producers are still working hard to supply farm fresh food and other products to their local communities. With local farm products in abundance this time of year, we encourage you to continue to support your local farmers, fishermen and forest products producers. For a listing of where to find farm fresh products throughout the seven states Farm Credit East serves, visit FarmCreditEast.com/FarmFreshGuide

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

Barry Buck, of Mapleton, Maine, was elected to a four-year term.

Barry is co-owner and cooperatively manages crop production, marketing and sales at Buck Farms, a 1,000-acre cash crop and potato farm.

In other regions, Doug Shelmidine, general and financial manager of Sheland Farms LLC in Adams, N.Y., was reelected to a four-year term. David “Skip” Hardie, retiring senior partner of Walnut Ridge Dairy, LLC, in Groton, N.Y., was also reelected to a four-year term.

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

COVID-19 Resource Hub Throughout the COVID-19 pandemic, Farm Credit East has aimed to provide producers with up-to-date information and resources regarding the pandemic’s impact on their businesses. This includes information on the Paycheck Protection Program and the related loan forgiveness as well as other programs such as the Economic Injury Disaster Loans. We also provide regular tax law and payroll updates along with information on USDA direct payments. We’ll continue to update these resources as more information becomes available.

Visit FarmCreditEast.com/ResourceHub to learn more.

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FINANCIAL PARTNER

Introducing New Board Leadership At the Board of Directors’ April 28 reorganization meeting, the Board elected Laurie Griffen, of Stillwater, N.Y., as its Chair and John Knopf, of Canandaigua, N.Y., as Vice Chair.

Laurie has been on the board since 2011. Together with her husband Steve, they own and operate Saratoga Sod Farm, Inc., a 600-acre turfgrass farm in Stillwater, N.Y., providing installation services as well as seed and fertilizer. Saratoga Sod also grows roughly 500 acres of soybeans, corn and barley as part of the crop rotation.

On the board since 2013, John is the principal owner of Fa-Ba Farms, LLC in Canandaigua, N.Y. Fa-Ba Farms is a dairy business consisting of 500 milking cows, 440 replacements and 850 acres of land devoted to forage production.

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

Pictured on the front cover are staff from 11 of Farm Credit East’s 20 offices saluting the Northeast’s essential agricultural producers who have continued working through the pandemic. See the cover story on page four to read a few producers’ stories of creativity and commitment to their communities.

CEO’s MESSAGE

“

It has been an adjustment, but I’ve appreciated how the team has adapted, persevered and continued to serve customers.

” PASSING THE TEST WITH

RESILIENCE Mike Reynolds, CEO, Farm Credit East The last several months have tested us

adaptability and resilience of our members

contact. We have too. We’ve started to bring

all. When the COVID-19 pandemic escalated

in the face of adversity. On behalf of the

our team back to our offices, have resumed

in March, nobody could have predicted the

entire Farm Credit East team, we salute you.

farm visits and are developing plans to allow

scale and scope of its impact as schools,

I’ve seen the same resilience among

customers to come to our offices. As with

businesses and many parts of the economy

our Farm Credit East team. In March, with

the resumption of most activities, there

and society began to shut down.

just a few days’ notice, about 80% of our

will be limitations as we continue taking

But like health care workers, first

team began working from home, many

appropriate precautions for the safety of our

responders and other essential personnel,

while caring for elders or young ones, or

staff and customers.

the men and women in agriculture, forest

homeschooling their children. It has been

products and fishing were on the front lines,

an adjustment, but I’ve appreciated how the

to ensuring Farm Credit East remains your

working to provide the food, fiber and other

team has adapted, persevered and continued

reliable financial partner in good times and

products our communities rely on.

to serve customers.

bad. This year has certainly put that to the

While adjusting operations to keep

One of the highlights of this issue is

Your board of directors is committed

test. We’re pleased that we have been able

themselves, their families and employees

recognizing our 32 scholarship winners

to match the Federal Reserve’s interest rate

healthy and safe has been a challenge

who are planning careers in food and

movements and lowered variable rates by

unto itself, we know many customers are

agriculture, forestry, fishing, or a related

1.5% since April. We’ve also provided an

also facing financial strain. We want to

field. It’s encouraging to learn about their

advance on 2020 patronage to provide some

assure you that Farm Credit East’s financial

goals, and although they’re pursuing higher

additional cash flow this summer. We have a

strength allows us the capacity and

education at a difficult time, they’re moving

range of products, services and expertise to

flexibility to work through each customer’s

ahead with their plans and inspire us to

support your business, so please contact us

situation on a case-by-case basis to arrive at

do the same. The optimism of this next

to find out how we can help.

the best possible outcome.

generation gives me confidence for the

Despite the challenges of the last few months, I’ve been inspired by our

It’s too early to declare victory over the

future and we’re proud to support their

pandemic, but we certainly haven’t been

educational endeavors.

defeated. We’ve passed the first test, and

customers’ response. In this issue of

It appears we’ve emerged from the

Financial Partner, you’ll read some

worst of the pandemic and we look forward

Farm Credit East team and the talented next

compelling stories about how Farm

to returning to normal business operations,

generation, I’m confident we’ll pass any

Credit East customers have adapted their

but it will take time. As a lender and

tests yet to come.

operations, helped their neighbors and

financial services provider whose business

continued to serve their communities in

is built on long-term relationships, we know

a variety of creative ways. It shows the

many of you have missed that in-person

with the resilience of our customers, the

SUMMER 2020

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NORTHEAST AGRICULTURE

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FINANCIAL PARTNER

SALUTE

A SALUTE TO PRODUCERS’ CREATIVITY, ADAPTABILITY AND COMMITMENT TO LOCAL COMMUNITIES IN A TIME OF CRISIS

NORTHEAST AGRICULTURAL PRODUCERS ARE NO STRANGERS TO CHALLENGE. BUT AS THE CORONAVIRUS PANDEMIC SWEPT THE NATION — JUST AS THE BUSY GROWING SEASON WAS KICKING OFF — PRODUCERS HAD TO QUICKLY ADAPT AND ADJUST THEIR OPERATIONS FOR DISRUPTIONS NEVER BEFORE EXPERIENCED. Many operations lost their markets. Some were considered nonessential based on their product and had to close their doors for an indefinite period. Others had to adjust their business to be able to operate within new social distancing guidelines. However, one bright side during this time of crisis is that “Buy Local” and “Know your Farmer” took on new meaning as consumers looked to source their food from local producers and sought to stay connected.

Northeast producers rose to the occasion. Their creativity and compassion have been witnessed across the region over these last few months. From donations of farm fresh products to help those in need, to adjusting marketing channels and business operations to stay connected to consumers, and even the production of essential products to keep the community safe, Northeast producers’ efforts have been inspiring.

We interviewed a dozen producers across the region who have adjusted their businesses to continue supporting local communities through the pandemic. The following stories are just a sample of the adaptability and compassion of the region’s producers. To all Northeast producers who are doing the same, we salute you. Thank you for continuing to be on the front lines, providing your communities with fresh, local food and fiber products.

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ADAPTING OPERATIONS FOR A NEW BUSINESS ENVIRONMENT Most ag businesses were deemed essential during the pandemic, so they were permitted to remain open. However, it wasn’t business as usual.

store or merging it with a CSA pickup. “Diversification is the key to survival in ag,” he said.

Another Northeast business diversifying their offerings was Liberty Vineyards & Winery, in Sheridan, NY. As a farm winery, it was able

Russo’s Fruit and Vegetable Farm in Tabernacle, NJ, was one of those

to remain open, but similar to Russo’s, was limited to online sales or

farm businesses that remained open with significant adjustments

curbside pickup. However, maintaining the social aspect of their business

to operations to maintain the health and safety of their employees

was no small task when the name of the game is “social distancing.”

and customers. They opened a week earlier than planned with new options to purchase their products, including online sales, curbside pickup, and delivery to the elderly and those with medical hardships.

“Early on, we were contacted by a food vendor looking for a location for pop-up barbecue, serving food to take home,” said owner Pam Burmaster. “It was the perfect opportunity to offer our customers

Initially, the farm had an influx of customers with over 150 pickups

and the community a place to safely drive through and pick up food

per day. After the first few weeks, owner Anthony Russo IV said

and wine for them to take home and enjoy.”

demand decreased but remained steady. Their greenhouse has also opened with social distancing and directional signage, mandatory face masks, and reduced customer capacity.

“Being proactive was important to us,” said Anthony. “I believe we’ve been successful during the pandemic because we didn’t wait to see what everyone else was doing before opening.”

He also acknowledges the help of high-school staff in their success.

“They’ve been a huge help putting together online orders and deliveries,” he said. “We’re appreciative of their willingness to work after their online schoolwork was finished.”

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Looking forward, Anthony is considering maintaining the online

FINANCIAL PARTNER

From that day forward, every Wednesday became “Wine & Dine Drive Thru Wednesday.” The winery brought in different food vendors each week, promoting that week’s cuisine through social media and emails to customers.

“We received many compliments from the community,” continued Pam. “It’s not only a good way to support local businesses, but also an opportunity to get out of the house and enjoy an activity in a safe manner.”

SALUTE Farm Credit East staff thank the hardworking families and agricultural businesses we work with across the region for your strength, innovation and commitment to your communities throughout the pandemic. It’s an honor to be your trusted partner.

FINDING CREATIVE WAYS TO ENGAGE CUSTOMERS As the country shut down, many people struggled with the lack of human interaction. Ag retail and winery businesses depend on interpersonal contact, so some businesses thought outside the box to engage customers in new ways.

Garth Ellms of Ellms Family Farm in Ballston Spa, NY, said their simple idea to keep the doors open led to a series of activities to engage customers. They started with drive-thru apple cider donuts and a farm experience. Customers could order donuts by the dozen online, then pick them up at the farm. As they exited, they drove through 1.5 miles

“The first weekend we sold out. We counted about 2,200 cars that came through the farm,” said Garth. After that first weekend, they added a scavenger hunt component so that customers had something to do while driving through the farm to exit. Additionally, for three weekends, they added a nightly fireworks show to their lineup. They estimated about 900 cars per night showed up for the displays.

“It was nice to give back to the community during a different season,” said Garth, as they typically don’t open this early in the spring.

“People were glad to be out of their homes, doing something fun and worthwhile from the safety of their vehicles.”

of the 250-acre farm.

SUMMER 2020

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Silver Thread Vineyard in Lodi, NY, also thought creatively to engage customers. A large part of their business is their tasting room and wine tasting classes, so co-owners Shannon and Paul Brock decided to start a weekly virtual wine tasting.

They let customers know in advance which wine variety they’ll feature in that week’s virtual tasting. Viewers can then either buy directly from Silver Thread Winery or buy a similar selection from a wine shop or another local winery.

“Making it public has been important to us,” said Shannon. “We always try to make wine approachable and fun, so we wanted people to have access to our classes even if they aren’t drinking our wine.”

Beyond the pandemic, Silver Thread plans to continue their online tasting sessions, but with a bit less frequency. “We want to continue to give those folks who prefer the virtual format, or for those who don’t get to visit the Finger Lakes often, an option to still be a part of our vineyard community,” said Shannon.

PIVOTING PRODUCTION TO KEEP THE COMMUNITY SAFE Demand for hand sanitizer skyrocketed as the pandemic escalated. In response, the Alcohol and Tobacco Tax and Trade Bureau (TTB) revised its regulations to allow undenatured ethanol to be used to produce hand sanitizer in accordance with guidance from the Food and Drug Administration (FDA). This presented a unique opportunity for some agribusinesses.

Western New York Energy was one such business. Shortly after this TTB announcement, the phone at their plant in Medina, NY, began ringing off the hook with distillers looking to purchase non-fuel ethanol.

They quickly adapted production to be able to extract the ethanol prior to it reaching the denaturing stage. The ethanol was then sold to upwards of 40 distillers from Maine to Pennsylvania to produce hand sanitizer using the World Health Organization’s local production recipe. To date, the plant has provided enough ethanol to produce at least a few million gallons of hand sanitizer.

From the onset of the coronavirus pandemic and related market drops, one of Western New York Energy’s biggest concerns was the farmers who rely on them to grind their corn. “The ability to shift production was a huge win for everyone,” said Western New York Energy’s chief financial officer Michelle Kingdollar. “We were able to help the country by supplying ingredients to produce much-needed hand sanitizer, we were able to keep our employees actively employed and we were able to keep our farmers’ products moving.”

“We recently bought several pallets of sanitizer back from our customers and donated bottles to some of our local farmers in order to help keep them safe and healthy,” added Michelle. “We can’t stress how much we appreciate our farmers. We will continue to do everything we can to keep using their products.”

On the production side of sanitization products, Hudson Valley Distillers in Clermont, NY, quickly pivoted its business to 100% hand sanitizer overnight.

“We were two days away from closing up shop,” said owner Chris Moyer. “But when we learned we could make hand sanitizer, it wasn’t even a decision. This pivot allowed us to keep the doors open, keep employees on the payroll and pay the bills while helping the community.”

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SALUTE Customers await curbside pickup at Russo’s Fruit and Vegetable Farm in Tabernacle, NJ.

“

BEING PROACTIVE WAS

IMPORTANT TO US. I BELIEVE WE’VE BEEN SUCCESSFUL DURING THE PANDEMIC BECAUSE WE DIDN’T WAIT TO SEE WHAT EVERYONE ELSE WAS DOING BEFORE OPENING. – Anthony Russo IV Russo’s Fruit and Vegetable Farm Tabernacle, N.J. SUMMER 2020

9

For the most part, Chris said it was an easy shift. “Production is pretty much the same until you get to the point of making it hand sanitizer as opposed to spirits,” he explained. “We have to denature it, which is essentially adding a chemical to make it unpalatable. So, we had to understand that process plus source the additional ingredients.”

The most challenging part of the transition was packaging. “As we got started, there was a huge demand for packaging.

The supply chain dried up and prices skyrocketed,” he said. So initially they used cider jugs to package the sanitizer.

Early on, Chris said the demand was intense, but things have since slowed to a reasonable pace as the regular sanitizer supply chain caught up. However, as businesses reopen, they’re seeing an uptick in wholesale

As the pandemic escalated, Hudson Valley Distillers in Clermont, NY, quickly pivoted to producing hand sanitizer.

demand. “As long as there is demand, we’re going to keep producing the sanitization products,” he said.

As he looks to the future, Chris said the worst-case scenario for his

“

business would be if the hand sanitizer chain stabilizes but restaurants and tasting rooms are still not fully opened. “That would be tough,” he said. “But we also grow rye on 11 acres for our whiskey, so this may be an opportunity for us to repurpose some of that land to allow

WE WERE TWO DAYS

for social distancing in an outdoor space. That might even help the

AWAY FROM CLOSING UP

GIVING BACK TO THE COMMUNITY IN A TIME OF NEED

SHOP. THIS PIVOT ALLOWED

While producers across the region were struggling right alongside

US TO KEEP THE DOORS

the rest of the country to make their own ends meet, it didn’t dampen

OPEN, KEEP EMPLOYEES

hardships their friends and customers were facing inspired many to

ON THE PAYROLL AND PAY

Hemphill Farms, a family-owned potato operation in Presque Isle,

THE BILLS WHILE HELPING

farm lost some of its markets. Having a large potato supply with

”

THE COMMUNITY. – Chris Moyer Hudson Valley Distillers Clermont, N.Y.

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business in the long term. So for now, time will tell.”

FINANCIAL PARTNER

their compassion for their local communities. On the contrary, the give back.

Maine, is one of those farms. As a result of COVID-19 closures, the nowhere to go, the farm began bagging potatoes to give to their neighbors. But what started as an effort to give back to the local community turned into a feat of generosity that provided 20,000 pounds of potatoes to people near and far, with some driving more than 100 miles thanks to a viral social media post.

Garrett Hemphill, the farm’s co-owner, said people were lined up an hour before the potato giveaway was scheduled to begin. They initially put out 6,000 pounds of potatoes and when those were

SALUTE

cleared out within an hour, they just kept dropping more. They

“The Dryden Dairy Day committee thanks Trinity Valley for

estimated 400 people visited the farm that day.

their generous support,” commented Brenda Carpenter, chair of the

“It was a great way to give back,” said Garrett. “Every fall, our city

Dryden Dairy Day Committee.

gives high school students a ‘Harvest Break’ to help with the potato

“We’re very community oriented and try to support any cause that we

harvest, so this was a way for us to say thank you to the community

possibly can,” said owner Branden Brown. “Especially during these

that helps us every year.”

uncertain times, we hope that our milk is of help to those who need it.”

about 200 multi-colored daisies that they wanted to donate to those

SERVING COMMUNITIES ON THE FRONT LINES

on the front lines. After a simple social media post, their local

In addition to the many Northeast producers adapting their businesses

hospital reached out to coordinate the donation. A few weeks later,

and finding ways to support their communities during these trying

Hart’s donated pansies to another local hospital and to the Meals on

times, there are also many serving directly on the front lines.

Another operation that gave back was Hart’s Greenhouse and Florist LLC, based in Norwich, Conn. Just after Easter, the operation had

Wheels program.

John Sipala of Whitman Nurseries in Jamesport, NY, joined his local fire

“If we have extra plants, I like to get them out in the community to help

department 25 years ago and served as its chief for a time. His county,

build community spirit and make people feel good,” said Joyce Hart.

Suffolk County, NY, has the most volunteer firefighters of any county in

The coronavirus pandemic also resulted in the cancelation of many

the nation as a percentage of the population.

community events, including the Dryden Dairy Day, an annual event in Dryden, NY, to celebrate the contributions of dairy farmers and educate the community. However, Dryden Grange, the event’s sponsor, didn’t want to miss this important opportunity to connect

Silver Thread Vineyard in Lodi, NY, utilized technology to virtually engage customers during the COVID-19 pandemic.

“ ”

IT’S ALWAYS A BALANCING ACT OF MANAGING [MY] 150-ACRE FARM WHILE ALSO RESPONDING TO FIRE DEPARTMENT CALLS. – John Sipala Whitman Nurseries Jamesport, N.Y.

John said it’s always a balancing act of managing his 150-acre farm while also responding to fire department calls. “There are years where my business doesn’t give me the ability to make as many calls and other

farmers and the local community, so they shifted their efforts to coordinate milk donations and a traveling dairy parade; offer a higher education scholarship; and moved their coloring contest to a virtual format, encouraging participants to share their creations on social media using the hashtag #DrydenDairyDay2020.

To execute the milk donation program, Dryden Dairy Day partnered with the Dryden Central School District and Trinity Valley Dairy in Cortland, NY. The goal was to deliver fresh, fluid milk to those in need. To accomplish this, Trinity Valley Dairy sold their milk at cost to Dryden Dairy Day, who then worked with the school district to distribute the milk to local families. On a weekly basis, 200 gallons

years, I earn the 100-alarm award for the year.”

John also sits on the Suffolk County Fire Academy’s Vocational Education Extension Board, where three of the nine members are involved in agriculture. “The local departments are made up of local business people. People that love our town,” he said.

When the pandemic hit, many New York City residents fled to the eastern end of Long Island. “This certainly caused an uptick in calls,” said John. “Our community is primarily a summer residence, so when the summer crowd is in town, and this year ahead of schedule, alarms certainly go up.”

of fluid milk were donated to the community.

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SALUTE

A FARM CREDIT EAST SALUTE Having worked with farmers, commercial

fishermen and forest product producers for more than 100 years, the Farm Credit East team has

witnessed our customers endure industry cycles, weather and market challenges before. While

the coronavirus pandemic introduced obstacles

the industry has never experienced before, it has been inspiring to watch Northeast agriculture adapt to continue to serve local communities.

This article presented a small sample of the encouraging efforts taking place across the region. We know many producers, especially those who lost markets or were forced to close their doors when the outbreak hit, continue to endure the impacts of the pandemic. From the Farm Credit East family to the hardworking families we work with across the region, thank you for your strength, innovation and commitment. It’s an honor to be your trusted partner. We salute each and every one of you.

Farmers on eastern Long Island paraded their tractors past the local hospital in May to salute the efforts of healthcare workers and first responders.

VISIT THE WEBSITES BELOW TO LEARN MORE ABOUT THE OPERATIONS MENTIONED IN THIS STORY.

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Ellms Family Farm Ballston Spa, NY EllmsFarms.com

Hudson Valley Distillers Clermont, NY HudsonValleyDistillers.com

Silver Thread Vineyard Lodi, NY SilverThreadWine.com

Hart’s Greenhouse and Florist LLC Norwich, CT HartsGreenhouseFlorist.com

Liberty Vineyards & Winery Sheridan, NY LibertyWinery.com

Trinity Valley Dairy Cortland, NY TrinityValleyDairy.com

Hemphill Farms Presque Isle, Maine Facebook.com/HemphillFarms

Russo’s Fruit & Vegetable Farm Tabernacle, NJ RussosFruitandVeg.com

Western New York Energy Medina, NY WNYEnergy.com

FINANCIAL PARTNER

E FARM CREDIT EAST CARES

DONATES $144,000 TO SUPPORT COVID-19 RELIEF EFFORTS

“

Farm Credit East Cares was created to support farm families, their communities and support organizations during times of need.

Many of our region’s agricultural producers are working with local food banks to provide fresh products for residents impacted by the pandemic. These funds will help those food banks continue to assist those in need, while also supporting the region’s producers.

– Mike Reynolds Farm Credit East CEO

Over the summer months, Farm Credit East staff typically enjoy getting out of the office to participate in local community events. In past years’ summer issues, we’ve shared photos of staff participating in dairy parades and other educational events; raising funds for community organizations via softball and golf tournaments and Relay For Life events; or helping out at local food banks. Unfortunately, the coronavirus pandemic and related safety precautions have resulted in the cancelation of many of these favored annual events – but that didn’t halt the compassion of our team.

Instead this year, the Farm Credit East Cares Community Fund donated $144,000 to various charitable organizations across the Northeast to support COVID-19 relief efforts. Recipient organizations were selected by staff from Farm Credit East’s 20 branch offices.

More than 60 northeast organizations providing food to those in need along with other support services received funds.

SUMMER 2020

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ADAPTING TO THE NEW NORMAL…

By Paul Herrington Farm Credit East State Certified Appraiser

The year began business as usual. As a state certified appraiser, I split my week between in-office work and farm visits to complete customer appraisals.

Never did I anticipate the changes to come as we entered the second quarter.

As the coronavirus pandemic and related relief programs escalated, I was asked to join a team of employees from across the association to become a regional specialist and assist customers in completing Paycheck Protection Program applications.

In this new support capacity, I had to draw on my previous experience as a loan officer to answer questions, source information and find creative solutions to assist customers. Throughout the process, customers have been grateful for this support. Even when we haven’t been able to give them everything they need, they’ve been appreciative of the guidance we were able to provide.

However, appraisals still need to be completed despite the pandemic. To protect the health and safety of staff and customers, we weren’t able to able to complete in-person, on site appraisals, but that didn’t mean work couldn’t be done. We just had to make some adjustments to the ‘traditional’ way we’ve completed appraisals.

Until very recently, appraisals consisted of video calls and many, many photos. I’ve scheduled virtual tours, requested photos and videos from owners, and contacted realtors for permission to use their photos.

While these methods don’t quite compare to being on site and seeing all aspects of a property with your own eyes, a virtual meeting still allows me to ask about property characteristics, see objects up close or even ask for a second look in real time.

FOR NOW

Google Earth also came in handy, providing date-stamped land or building views from the road.

Additionally, my local connection allows me to visualize the area and confirm the Google Earth images. It may not be a perfect strategy, but it allows the work to be completed remotely and on a timely basis.

I’ve been appreciative of customers’ understanding during this time. As long as we can gather the data to feel comfortable in the appraisal, the customer is supportive because it keeps their process moving, too. We’re all in this together.

As we work toward a slow and steady return to normal, I look forward to getting back on farms to do physical inspections. The customer connection is what I love about completing appraisals — when you can understand a person’s motivation for purchasing or owning property and how they want to utilize it, that’s what I most enjoy — so I look forward to a return to business-as-usual.

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FINANCIAL PARTNER

THE VALUE OF OWNERSHIP As a cooperative, a benefit of Farm Credit East members’ ownership includes a share in the association’s financial success. Farm Credit East’s continued financial strength has resulted in members receiving patronage payments for the last 25 consecutive years, as well as mid-year patronage payments this year as well as the past two years. Since the patronage program was first adopted, customers of Farm Credit East (and predecessor associations) have received $918 million in dividends from ownership of their cooperative.

“

The association’s customer-owners are at the core of every business decision. For this reason, Farm Credit East strives to maintain competitive interest rates. The association’s pricing strategy is to adjust interest rates when there are changes in variable rate funding costs.

One of the Board’s guiding principles is maintaining the value of customer ownership. We’re fortunate to be part of a financially strong organization, and both the board and management remain committed to returning that value to customer owners through patronage dividends and competitive interest rates.

– Board Chair Laurie Griffen Stillwater, N.Y.

”

FEBRUARY $70 million patronage On average, eligible customers received about a 1.04% reduction in their effective interest rate.

APRIL Base variable interest rate pricing reduced by 1%

FEBRUARY

MAY

$65 million patronage On average, eligible customers received 20.5% of the interest paid in 2018.

Base variable interest rate pricing reduced by 0.25%

OCTOBER FEBRUARY $60 million patronage On average, eligible customers received 22.5% of the interest paid in 2017.

Base variable interest rate pricing reduced by 0.25% This reduction was in addition to movement in national interest rates influenced by the Federal Reserve.

JUNE Base variable interest rate pricing reduced by 0.25% This reduction followed the return of Farm Credit East’s cost of funding to its historical relationship with the Fed Funds rate.

JULY

OCTOBER

OCTOBER

$15 million special patronage This payment equated to about 11% of stockholders’ interest costs.

$25 million special patronage This payment equated to approximately 0.45% of eligible average customer loan volume.

$30 million patronage advance For the full year 2020, Farm Credit East is targeting patronage of 1.25% of average eligible loan volume, so members received an advance on that expected payment equal to about 0.50% of current loan volume for the average customer.

2018

2019

2020

WASHINGTON Update

Tom Cosgrove Executive Vice President for Public Affairs

FEDERAL RESPONSE TO COVID-19 – MORE TO COME?

In response to the COVID-19 pandemic,

called the Paycheck Protection Program

This issue was addressed in the $3 trillion

Congress has passed four major pieces of

(PPP). Most employers with fewer than 500

Health and Economic Recovery Omnibus

legislation providing trillions of dollars

employees were eligible for low interest

Emergency Solutions (HEROES) Act passed by

of support to individuals, businesses and

loans equal to 2.5 times monthly payroll.

the House of Representatives which includes

state governments. As states reopen, the

These loans are forgivable if spent on

$875 billion for state and local governments.

question is whether Congress will provide

qualified expenses, including 60% spent

Unlike the other four laws, the HEROES

additional funding for recovery, and if so,

on payroll, though the SBA is still finalizing

Act has not been a bipartisan effort and the

what it will include.

some of the rules for forgiveness.

Republican-led Senate has indicated it would

Following the passage of an $8.3 billion

work on a more narrowly crafted bill.

measure with funding for public health,

16, Congress passed the PPP Enhancement

medical supplies and vaccine development,

Act to provide an additional $310 billion

are advocating for additional funds for

the Families First Coronavirus Response

for PPP as well as additional funding for

agricultural producers, indicating that the

Act (FFCRA) was signed into law on March

the SBA’s Economic Injury Disaster Loans

CFAP payments are not sufficient, especially

18. The primary provisions related to most

(EIDL) and emergency grants. The bill made

for certain producers such as apple growers

employers with 50 to 500 employees,

ag producers eligible for the EIDL and also

who will have difficulty qualifying. The

providing up to 10 days of expanded paid

provided $100 billion in support for hospitals

HEROES Act contained several agricultural

sick leave and family and medical leave.

and testing.

provisions including additional support for

The largest and most comprehensive

USDA also received funding from the

In addition, many farm organizations

livestock, dairy and specialty crop producers

COVID-19 relief legislation thus far has been

CARES Act and on April 17 announced

as well as funding for local farmers’ markets.

the Coronavirus Aid, Relief and Economic

the details for the $19 billion Coronavirus

It is unclear if the Senate is considering any

Security (CARES) Act signed into law

Food Assistance Program (CFAP), including

of these specific measures.

on March 27. This $2.2 trillion package

$16 billion in payments to producers and

Certainly, the level of economic

is wide ranging, including economic

$3 billion for direct food assistance. USDA

assistance that Congress has provided is

impact payments to taxpayers, enhanced

began taking applications for the CFAP direct

unprecedented. By the time this issue of

unemployment benefits, individual and

payments on May 26.

Financial Partner arrives, the trillion-dollar

business tax relief, support for the health

Additionally, the CARES Act provided

question may already be answered as to

care system, an economic stabilization fund

$150 billion to states for COVID-19 expenses,

whether Congress will provide additional

for major industries like the airlines, and

but many state and local governments in

funding and if it will include support for

funding for state governments.

Farm Credit East’s territory are facing major

state and local governments or additional

budget deficits with increased COVID-19

assistance for agricultural producers.

A key piece of the CARES Act was the

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After initial PPP funding ran out on April

$349 billion Small Business Administration

costs and revenue shortfalls due to the

(SBA) forgivable loan guarantee program

economic shutdown.

FINANCIAL PARTNER

MEET OUR

SCHOLARSHIP WINNERS EACH EARNED $1,500 TOWARD HIGHER EDUCATION 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

M A R G A R E T B R A DY

MAR I E LLE PE LLETI E R

Easton, Conn.

Industry, Maine

ABRAHAM BALDWIN AGRICULTURAL COLLEGE MAJOR: LIVESTOCK PRODUCTION CAREER PATH: BOVINE ARTIFICIAL INSEMINATION TECHNICIAN & GENETIC SPECIALIST

UNIVERSITY OF MAINE MAJOR: ANIMAL SCIENCE CAREER PATH: LARGE & SMALL ANIMAL VETERINARIAN

Already certified in artificial insemination, Margaret plans to continue her education to pursue a career in bovine genetics to assist the beef and dairy industries.

L I N D S AY M E Y E R S Southbury, Conn.

THE UNIVERSITY OF DELAWARE MAJOR: PRE-VETERINARY MEDICINE CAREER PATH: LARGE OR SMALL ANIMAL VETERINARIAN

Lindsay hopes to expand her knowledge in genetics and animal reproduction to protect the safe practice and integrity of breeding standards as a veterinarian in the future.

A N K IT KU M A R S I N G H Tolland, Conn.

UNIVERSITY OF CONNECTICUT MAJOR: NATURAL RESOURCES AND ENVIRONMENTAL SCIENCE CAREER PATH: AGRI-BUSINESS & CONSULTING

Ankit plans to use his knowledge of mechanical and environmental engineering to further research hydroponics in conjunction with his consulting experience to help farmers implement sustainable farming practices.

MAINE

AMBER FERRIS Peru, Maine

Working on the farm for as long as she can remember, Marielle learned her passion for animals. She plans to own a veterinary practice in the future.

ANNA ROBINSON Presque Isle, Maine UNIVERSITY OF MAINE MAJOR: ANIMAL & VETERINARY SCIENCE CAREER PATH: LARGE ANIMAL VETERINARIAN

Anna’s lifelong interest in livestock led her to pursue a degree in veterinary science. She plans to attend graduate school to further her education after graduation.

C I E R R A WAT E R S Bradford, Maine HUSSON UNIVERSITY MAJOR: BUSINESS ADMINISTRATION CAREER PATH: AGRI-BUSINESS

Cierra aims to use her farm and 4-H background along with her degree to pursue a career helping farms in need of assistance.

N OAH WH ITE Washburn, Maine UNIVERSITY OF MAINE AT PRESQUE ISLE MAJOR: BUSINESS ADMINISTRATION CAREER PATH: FARM MANAGER/OWNER

After graduation, Noah plans to apply the knowledge he’s gained to take over his family’s third-generation farm business in the future.

UNIVERSITY OF MAINE MAJOR: ANIMAL & VETERINARY SCIENCE CAREER PATH: LARGE & SMALL ANIMAL VETERINARIAN

After graduation, Amber plans to apply to a graduate veterinarian program, focusing on large animals such as dairy cattle and horses, as well as small companion animals.

SUMMER 2020

17

M AS SAC H US E T TS

N E W YO R K

B R IAN C U R LEY

MAD I S O N B E NTLEY

Ipswich, Mass.

Athens, NY

UNIVERSITY OF MASSACHUSETTS – AMHERST MAJOR: SUSTAINABLE HORTICULTURE CAREER PATH: GREENHOUSE MANAGEMENT

PAUL SMITH’S COLLEGE MAJOR: FORESTRY CAREER PATH: FORESTRY TECHNICIAN

After graduation, Brian plans to either work in the commercial greenhouse business or become an agricultural educator for high school students.

Madison attributes his passion for forestry to his grandfather and uncle. He hopes to pursue a career in forestry, possibly starting his own business after graduation.

COLIN KADIS

JESSE BRAUN

Newton, Mass.

Lisbon, NY

CORNELL UNIVERSITY MAJOR: ANIMAL SCIENCE CAREER PATH: DAIRY FARM MANAGER

COLUMBIA UNIVERSITY MAJOR: SUSTAINABLE DEVELOPMENT & COMPUTER SCIENCE CAREER PATH: ENVIRONMENTAL/AGRICULTURAL LAW

Having worked on dairy farms in multiple states and Ireland, Colin plans to continue his career in the dairy industry after graduation, with his goal to become a large, progressive herd manager.

NEW HAMPSHIRE

MORGAN MACMILLAN Hollis, NH UNIVERSITY OF CONNECTICUT MAJOR: SUSTAINABLE PLANT & SOIL SYSTEMS CAREER PATH: SUSTAINABLE AGRICULTURE

Morgan hopes to apply her education and hands-on experience in greenhouse and nursery production, as well as her volunteer experience to a career in sustainable agriculture.

NEW JERSEY

Z O E L O C KB U R N E R Newton, NJ CORNELL UNIVERSITY MAJOR: AGRICULTURAL SCIENCES CAREER PATH: CROP CONSULTANT

Living on a fourth-generation dairy farm inspired Zoe to pursue a degree in horticulture. She aims to support farmers as a crop consultant.

J A C E LY N R U D D E R O W Pedricktown, NJ IOWA STATE UNIVERSITY MAJOR: BIOLOGICAL SYSTEMS ENGINEERING CAREER PATH: FOOD ENGINEERING

Jacelyn hopes to use her degree to help resolve issues on food production lines, lowering the risk for allergic reaction due to cross contamination.

E A M O N N WA LTO N Medford, NJ DELAWARE VALLEY UNIVERSITY MAJOR: ANIMAL SCIENCE CAREER PATH: DAIRY FARM MANAGER/OWNER

Working on his uncle’s dairy farm in Ireland inspired Eamonn’s pursuit to own a diversified organic dairy farm after graduation.

Jesse plans to attend law school after graduation to become wellversed in environmental law and its relation to agriculture to facilitate conversations between agricultural and environmental groups.

REBECCA COLGAN Auburn, NY SUNY COBLESKILL MAJOR: AGRICULTURAL SCIENCES CAREER PATH: AGRI-BUSINESS AND CONSULTING

Rebecca plans to use her agricultural sciences degree to become a dairy herd manager. After gaining sufficient experience, she would also like to have a career in farm consulting.

MORGAN DEPUE Hamburg, NY CORNELL UNIVERSITY MAJOR: ANIMAL SCIENCE CAREER PATH: LARGE ANIMAL VETERINARIAN

With a degree in veterinary medicine, Morgan plans to treat large animals and boost farm efficiency, providing herd health and nutrition for dairy farms.

P E Y T O N F O N TA I N E Strykersville, NY CORNELL UNIVERSITY MAJOR: AGRICULTURE SCIENCES CAREER PATH: AGRICULTURAL EDUCATION

Peyton wants to help shape the future of the ag industry by inspiring the youth of today and tomorrow to be involved in and support agriculture.

H A N N A H -R O S E F O O T E Richmondville, NY SUNY COBLESKILL MAJOR: AGRI-BUSINESS CAREER PATH: AGRICULTURAL EDUCATION

Hannah-Rose hopes to use her degree to become an agricultural educator, to expand middle- and high-school students interests and knowledge of agriculture.

EMMA GENDRON Willet, NY SUNY COBLESKILL MAJOR: ANIMAL SCIENCE CAREER PATH: LARGE ANIMAL VETERINARIAN

Emma plans to pursue a career in veterinary medicine, caring for large animals while also bringing knowledge back to her own family’s dairy farm.

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FINANCIAL PARTNER

E LIJAH HALS EY

LAU R A LITTR E LL

Water Mill, NY

St. Johnsville, NY

LAFAYETTE COLLEGE MAJOR: CIVIL ENGINEERING CAREER PATH: FARM MANAGER/OWNER OR AGRICULTURAL ENGINEER

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

Elijah is following in his grandfather’s footsteps, pursuing an engineering degree. After graduation, he will apply the knowledge learned on his family’s 13-generation vegetable farm.

With a well-rounded education and hands-on experience, Laura plans a career in dairy, either as a herd or calf manager, while also focusing on dairy cattle genetics.

JOSEPH PROE

GRACE HARRIGAN

Canandaigua, NY

Chateaugay, NY CORNELL UNIVERSITY MAJOR: ANIMAL SCIENCE CAREER PATH: AGRICULTURAL EDUCATION

Agricultural leadership programs guided Grace’s career path. She hopes to give back to these programs in the future by becoming an educator.

CORNELL UNIVERSITY MAJOR: VITICULTURE & ENOLOGY CAREER PATH: VINEYARD MANAGEMENT OR CONSULTING

After graduation, Joseph will utilize his vineyard management training to educate others on sustainable farming practices to support their business success.

J U S T I N S E LTZ E R

A D A M KI N G

West Valley, NY

Schuylerville, NY CORNELL UNIVERSITY MAJOR: AGRICULTURAL SCIENCES CAREER PATH: DAIRY FARM MANAGER/OWNER

Adam’s passion for agriculture led him to pursue a degree in agricultural sciences. He plans to bring the applicable knowledge learned back to his family’s farm after graduation.

SUNY ALFRED MAJOR: HEAVY EQUIPMENT/DIESEL TECHNICIAN CAREER PATH: FARM EQUIPMENT MECHANIC

Growing up around farms of different enterprises, Justin understands their common need for equipment. This is why Justin plans a career as a mechanic serving the ag community.

A L I C I A S H E PA R D

J O H N ATH A N KI N G

Henderson, NY

Schuylerville, NY CORNELL UNIVERSITY MAJOR: ANIMAL SCIENCE CAREER PATH: DAIRY FARM MANAGER/OWNER

With a focus on dairy management, Johnathan is eager to continue his education and eventually return to the family dairy farm to take on more responsibility.

SUNY COBLESKILL MAJOR: AGRI-BUSINESS CAREER PATH: AGRICULTURAL ACCOUNTING/FINANCE

Alicia’s exposure and involvement with agriculture in the classroom and FFA inspired her career path in ag accounting or finance.

B R YA N N A WA R N E R

AMBER LEWIS

Frewsburg, NY

Rexville, NY

WILMINGTON COLLEGE MAJOR: AGRICULTURAL BUSINESS CAREER PATH: AGRI-BUSINESS

SUNY COBLESKILL MAJOR: AGRICULTURAL BUSINESS CAREER PATH: AGRICULTURAL FINANCE

Amber would like to pursue a career in ag business, focusing on appraisal, tax or accounting, to provide farmers with quality financial services.

Showing livestock at fairs in her youth inspired Bryanna’s career path.

Her goal is to become involved in the fair industry at the county, state and national levels.

FARM CREDIT EAST “CHAIR SCHOL ARSHIP” RECIPIENT For the past four years, former Board Chair Matt Beaton has selected an additional $1,500 scholarship to a student committed to a career in production agriculture. This scholarship was awarded upon a secondary, in-depth review of the applications and is in addition to the $1,500 Farm Credit East scholarship.

C H A R L OT TE KE I L Mattituck, NY CORNELL UNIVERSITY MAJOR: AGRICULTURAL SCIENCES CAREER PATH: GREENHOUSE MANAGEMENT

Charlotte’s appreciation for plants stems from her upbringing near her family’s wholesale greenhouse business. She aims to become the first woman in a leadership role in the family business.

TO BE A CANDIDATE FOR A 2021 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 0 21

SUMMER 2020

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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 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 ©2020 by Farm Credit East, ACA. All rights reserved.

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

2021 FINANCIAL PARTNER is printed on recycled paper.

AG R IC U LT UR A L VI E WS CALENDAR PHOTO CONTEST

Help us fill Farm Credit East’s Agricultural Views 2021 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 2021 Calendar and also earn you a $100 cash prize!

• 14 photos will be selected for a $100 cash prize each • Submission deadline: July 31, 2020 NEED CREATIVE INSPIR ATION? VISIT FA R M C R E D I T E A S T.C OM /C A L E N DA R

UPLOAD YOUR BEST SHOTS TO OUR WEBSITE

BY JULY 31 FOR YOUR CHANCE TO WIN A $100 CASH PRIZE