Summer 2015 Financial Partner Magazine

S U M M E R 2 015

BB UU SS IINN EESS SS

IINN SS IIGG HH TTSS

FFOO RR

HH IIGG HH EE RR

YY IIEE LLDD SS

FIN PA ANC RT IA NE L R

FarmCreditEast.com

INSIDE News & Views 2 CEO Letter 3 Cover Story 5 Young Farmers 12 Washington Update 14 Scholarship Winners 17 Community Support 20

BRIDGING URBAN AND RURAL COMMUNITIES

Urban farmers’ markets provide consumers with access to fresh, local farm products

N EW &V IEW S S

FarmCreditEast.com

Welcome New Board Members Today’s Harvest: Where agriculture means business.

In the April election for open seats on the Farm Credit East Board of Directors, customer-members elected one new director.

Peter Call, of Batavia, N.Y., was elected to a four-year term from the Western nominating region. Peter is president of

Farm Credit East recently launched a blog

My-T Acres, Inc., an 8,500-acre vegetable and grain opera-

to provide those interested in Northeast

tion. More than 4,800 of those acres are dedicated to the

agriculture information and resources

production of snap beans, potatoes, red beets, carrots, peas,

related to the diverse farming, forestry

sweet corn, spinach and cabbage. Peter is in business with

and commercial fishing industries here in

his brothers, Nate and Phil Call, as well as with their cousin,

the Northeast. It includes information for

Patricia Riner.

young and beginning farmers, business and financial planning and industry hot topics.

Visit blog.farmcrediteast.com to check it out.

In other elections, Henry L. Huntington, of Loudon, N.H., Daniel J. Corey, of Monticello, Maine, and Laurie Griffen, of Stillwater, N.Y., were reelected to four-year seats.

To stay up to date on new posts, feel free

We congratulate the winning candidates. Thanks to our customer-members for voting

to subscribe to our Today’s Harvest blog by

and to our nominating committee for providing a great slate of candidates. We also

entering your email address in the

thank Bob Brown and Peggy Jo Jones for their many years of dedicated service

‘Get the Updates’ section.

as directors.

Tim Chan, of Claremont, N.H., also recently joined the Board as an appointed outside director. Tim was the senior vice president and chief financial officer of Ocean Spray Cranberries, Inc., North America’s leading producer of canned and bottled juices and juice drinks.

In addition to the recently elected members, the Board includes: Matthew W. Beaton, Wareham, Mass.; Michael N. Brooks, Elmer, N.J.; Christine E. Fesko, Skaneateles, N.Y.; Andrew J. Gilbert, Potsdam, N.Y.; Ann P. Hudson, Suffield, Conn.; Richard P. Janiga, East Aurora, N.Y.; Philip Jamie Jones, Shelton, Conn.; John P. Knopf, Canandaigua, N.Y.; Henry E. McPherson, Hermon, Maine; Lisa P. Sellew, Lebanon, Conn.; Douglas W. Shelmidine, Adams, N.Y.; and Donald P. White, Bangor, Maine.

2

FINANCIAL PARTNER

STRENGTH CEO’s MESSAGE THROUGH OUR CUSTOMER-OWNERS Bill Lipinski, CEO, Farm Credit East

of net income as patronage dividends based on an evaluation of the need to replenish loss reserves and build capital.

This past February, Farm Credit East distributed $51 million to customers based on 2014 net income.

Starting in 1996 and each year since, Farm Credit East and its predecessor associations have paid patronage dividends. In recent years, distribution levels have been approximately 1 percent of patron volume. For some years this has been in excess of 25% of the interest paid by Farm Credit East customers.

We’re also pleased to announce we will redeem $6.1 million of allocated retained earnings to qualified Maine members in September. This represents the total amount previously allocated to former Farm Credit of Maine members prior to the merger. This payment represents the planned 2015 redemption of allocated retained earnings, plus the accelerated redemption of allocated retained earnings originally planned for years 2016, 2017, 2018, 2019 and 2020.

This early redemption is a direct result of the successful 2014 merger of

Patronage: A Promise Kept for 19 Years $60 $50 $40 $30 $20

15 20

13 20

11 20

09 20

07 20

05 20

03 20

01 20

99 19

$0

97

$10

19

Patronage Dividends (in millions)

Make no question about it — I believe in our customer-ownership model and providing unsurpassed customer value.

Our commitment to a strong patronage program is part of that unsurpassed customer value.

In my role, I travel throughout the Northeast quite a bit, visiting with customers and different branch offices, and this is by far my favorite time to travel.

This is the time of year when Northeast agriculture is at its finest — fields of grain and other products waiting to be harvested, trees ripening with apples and peaches, forest products producers back in the woods, fishermen out on the water and farm markets stocked with farm fresh products. It’s when I get to see our successful Northeast agriculture and forest products producers and commercial fisherman hard at work doing what they do best.

It’s thanks to these thriving Northeast businesses that our cooperative remains strong. We are only successful when our owners are successful, and you as our owners share in that financial success in the form of patronage dividends.

Each December, our Board adopts a resolution for the following year in which it commits to paying a portion

continued

SUMMER 2015

3

CEO’s MESSAGE

continued

STRENGTH THROUGH OUR CUSTOMER-OWNERS Farm Credit East and Farm Credit of Maine.

Being able to consistently pay a healthy patronage dividend reflects the strength of our cooperative. Our strong capital position helps to ensure that we will be a reliable provider of credit as economic cycles change. As Farm Credit

East moves forward, we will continue to work hard to generate earnings to meet our financial objectives while we build capital, maintain operational efficiencies, ensure competitive interest rates and ultimately provide unsurpassed customer value.

Having a business model focused on your success is part of our promise to you as customer-owners. I am pleased with the value that we bring to our customers, but mostly I am proud to work with the successful Northeast agriculture businesses that make this possible.

Farm Credit East is proud of its cooperative structure. Our recent communications message helps tell our patronage story.

4

FINANCIAL PARTNER

C O V E R

S T O R Y

BRIDGING URBAN AND RURAL COMMUNITIES Urban farmers’ markets provide consumers with access to fresh, local farm products The number of farmers’ markets in the United States has grown significantly over the past decade. The driving force behind much of this growth is healthconscious consumers interested in where their food comes from, how it’s grown and even who is growing it. When you value shopping locally, farmers are a crucial part of that equation.

SUMMER 2015

5

Farmers’ markets offer producers a direct-to-consumer outlet to sell their fruits, vegetables, livestock, dairy and other farm products. The Northeast alone is home to more than 1,500 markets. Increasingly markets are popping up in and around densely populated urban centers.

Farmers’ Markets

in Farm Credit East’s Region ME: 92

NH: 97 NY: 652

CT: 157

The Northeast alone is home to more than 1,500 farmers’ markets.

Source: USDA

NJ:147 6

FINANCIAL PARTNER

MA: 305 RI: 57

GrowNYC is just one of these urban farmers’ markets serving the five boroughs of New York City. Michael Hurwitz, director of the Greenmarket Program for GrowNYC, said, “Here at Greenmarket, we’re about not only providing food access to the city, but also promoting the regional agriculture economy and keeping farmland in production.”

Farm Fresh Rhode Island was founded on the same principles. “Our organization provides opportunities for farmers to keep farming and connects those farmers with consumers,” said Jesse Rye, co-executive director of Food System Enterprise, Farm Fresh Rhode Island.

“There’s a genuine experience of tasting something fresh and in season,” continued Jesse. “When it comes down to it, shoppers are looking for fresh and delicious food. They want a tomato that tastes like a tomato, not one that’s been engineered to travel thousands of miles. And our markets provide that access.”

C O V E R

S T O R Y

GrowNYC’s Greenmarket in Union Square

WHAT’S IN IT FOR THE PRODUCER? “About 85% of the farmers we work with would tell you they’d be out of business if they had to rely on wholesale alone,” said Michael. “There’s certainly an expense to participate, both hard and opportunity, but at the end of the day, producers are able to take home more of the retail dollar and they’re able to get prices they wouldn’t be able to anywhere else.”

The same rings true in New England. “Farmland is at a premium,” said Jesse. “For farmers to be successful, direct-toconsumer retail sales are an integral part of the business mix.”

Both Fred Wilklow, owner of Wilklow Orchards in Highland, N.Y., and Skip Paul, owner of Wishing Stone Farm in Little Compton, R.I., can attest to this.

“Greenmarket really turned our farm around,” said Fred.

“In the early 80’s, our farm was struggling. We considered Greenmarket, but didn’t know how we could spend that much time off the farm. Out of desperation, we tried it.

“We went to our first market in June of 1984 and haven’t looked back. Turns out, we were a direct market farm without realizing it,” joked Fred. “Ninety percent of our product is sold this way.”

Skip Paul initially had a retail market at the farm but it was dependent on weekend sales. After a few rainy weekends, it started to lose money.

“Now we get paid that day at a much better price. Direct sale is just better than the wholesale dollar,” said Skip. “Fortyfive percent of sales currently come from farmers’ markets.

We’re bringing the produce to the city versus relying on the city to come out to the farm.”

On the flip side, Greenmarket has increased visits to Wilklow Orchards. “Our pick-your-own apple business has grown because our city customers want to come see the farm,” said Fred.

Then there are the relationships. “We’ve developed relationships with local people that depend on us for their source of food,” said Skip. “We have people that have been coming to us

SUMMER 2015

7

since we started at the markets eighteen years ago, and today their sons or daughters are coming too.”

“It’s mutually beneficial,” said Jesse. “Farmers learn what their customers want, which in turn educates the farmer about products they might consider growing for the next season.”

Finally, markets eliminate the middle man. “When your product goes on someone else’s shelf, you don’t know if they’re going to do whatever they can to move that product,” said Michael. “At the market, farmers are able to educate somebody every day about what makes their products different.”

SELLING AT FARMERS’ MARKETS “It takes a special kind of person to manage a farm operation, coordinate logistics and market their product directly to the consumer,” said Ryan Hrobuchak, Farm Credit East loan officer. “Many of our members have found farmers’ markets to be a great outlet to market their products.

“Those who are successful are strategic in choosing their locations and finding their target market. They develop dynamic relationships with their customers and not only educate, but also listen and adapt to what the consumer wants,” continued Ryan.

FRESH FOOD ACCESS Most urban farmers’ markets were founded to bring fresh, local food into communities that otherwise would not have access. With that mission in mind, many have become licensed

by USDA to accept Supplemental Nutrition Assistance Program (SNAP) benefits. This program increases the purchasing power of eligible, low-income people by providing them with monthly benefits to purchase food at authorized food stores.

In fiscal year 2014, there was a 28-percent increase in farmers’ markets and direct marketing farmers licensed by this program and $18.8 million of SNAP benefits were redeemed

GrowNYC

Farm Fresh Rhode Island

founded 1976

founded 2004

MISSION

MISSION

GrowNYC is a hands-on non-profit which improves New York City’s quality of life through environmental programs that transform communities block by block and empower all New Yorkers to secure a clean and healthy environment for future generations.

Farm Fresh Rhode Island is growing a local food system that values the environment, health and quality of life of Rhode Island farmers and eaters.

The Greenmarket program has 54 retail farmers’ market locations throughout all five New York City boroughs, with 24 locations open year round and several operating multiple times during the week, resulting in 2,500 individual markets annually. The program works with 240 producers representing seven states: New York, New Jersey, Pennsylvania, Connecticut, Massachusetts, Rhode Island and Vermont.

OTHER PROGRAMMING

• Environmental education program

• Open space greening

• Office of recycling outreach and education GrowNYC.org

8

The economics of a farmers’ market can be difficult. “If you’re selling at more locations, more often, but selling fewer products, expenses are higher and profits are lower,” said Jesse.

There is competition. “Overprotection can kill a market,” said Skip. “Multiple growers create prices that bring people back. And ultimately, when one producer does well, everyone does well, which elevates the entire market.”

Bottom line, a producer still needs to market. “Whether better products or better service — you need to build up your business like anywhere else,” said Fred.

FINANCIAL PARTNER

Farm Fresh directly manages 10 farmers’ markets throughout the year, with their wintertime market in Pawtucket, R.I. being their largest with 70 vendors. They work with more than 50 farmers throughout Rhode Island, Massachusetts and Connecticut.

OTHER PROGRAMMING

• Market Mobile

• Harvest Kitchen

• Healthy Foods, Healthy Families

FarmFreshRI.org

C O V E R at farmers’ markets and direct marketing farms, according to a report by USDA’s Economic Research Service.

“Farm Fresh RI offers ‘Bonus Bucks,’ which is a 40-percent bonus on top of the value of their SNAP incentive,” said Jesse.

“The Bonus Bucks have to be used exclusively for fresh fruits and vegetables.

“We see this as a win for consumers, farmers and communities. Food-insecure families are able to put more fresh food on their table, farmers gain more customers and sell more product and those incentivized dollars are invested back into the local economy.”

CHANGING THE WAY FOOD IS CONSUMED Farmers’ markets provide consumers access to a diversity of products that they may not be able to find elsewhere.

Everything from organic to conventional, from fresh to preserved and value-added — markets offer a variety of fruits, vegetables, livestock products, baked goods and seafood. Across GrowNYC’s 54 retail market locations, 13,000 varieties of products are available — and every year there’s something new.

Wilklow Orchards has diversified significantly. “Consumer demand has driven our diversification over the past thirty

S T O R Y

years. We’re always on the lookout for the next new crop,” said Fred.

Michael has witnessed many of these trends. “Several years ago, heirloom tomatoes were the hot new item. Today, there’s increased demand for grain, ginger and craft beverages. Once one farmer has done it successfully, a lot of other folks look into bringing that product to market.

“Greenmarket has really changed the way food is eaten and consumed in New York City,” Michael continued. “Consumers taste and smell their way through the markets and ask questions of the farmer along the way. And its generated demand for local food by institutions.”

“Market shoppers are open to trying new things and exploring new flavors,” said Jesse. “They’re learning to eat with the seasons. Sure, it’s nice to get tomatoes and blueberries all year round, but there’s also something to understanding why you can only get a ripe, delicious tomato for two or three months out of the year. And they’re learning to preserve those flavors and tastes, whether through canning or freezing, to enjoy them at other parts of the year.”

There’s also an ethnic component. With such diverse city populations, farmers are learning from one another, and from

Wishing Stone Farm

Wilklow Orchards

Little Compton, R.I.

Highland, N.Y.

Wishing Stone Farm has participated in the Providence farmers’ markets for 18 years. In addition to this market, they participate in two weekly summer markets and two winter markets. They also distribute produce wholesale and have a Community Supported Agriculture (CSA) program and retail market at the farm. They grow over 385 varieties of vegetables, as well as offer value-added products.

Wilklow Orchards has been selling at GrowNYC Greenmarkets for 31 years. They participate in seven New York City farmers’ markets four days a week, as well as some upstate markets closer to home.

They also have pick-your-own apples at their farm in the fall. In addition to growing 120 acres of fruit, including peaches, apples and plums, and eight acres of tomatoes, they raise pork and beef. They also have greenhouses, an on-farm bakery and produce fresh apple cider and jams.

WishingStoneFarm.com

WilklowOrchards.com

SUMMER 2015

9

their customers, about how to grow, or in some cases stumble upon, products that recreate flavors of “home.”

“Six years ago, one farmer didn’t know what a ramp was, or that it was growing on the farm. Now that farmer has a new income source in the spring when there’s not a lot of cash coming in,” said Michael. “We also have farmers growing Latino and Asian greens.”

EXTENDING THE GROWING SEASON Due to demand for fresh product, many farmers are extending their growing seasons. GrowNYC has 24 locations that operate year-round and Farm Fresh Rhode Island operates two winter markets, one with over 70 vendors.

“Growers have become very creative with their storage techniques and what they’re doing to extend their seasons so there are more items available at more times of the year,” said Jesse. “I’m always intrigued to see what’s available in February.

“That’s a really important distinction, especially here in the Northeast and other places with cold weather — it speaks to the creativity of our farmers and their commitment to provide for their customers.”

MULTIPLIER IMPACT Farmers’ markets contribute to agricultural viability and diversity. As such, farmers’ markets help encourage new agricultural investment and help to keep regional farmland viable.

They’re also changing how open space is utilized in cities.

Each week, open space in an otherwise densely populated urban park or street corner is transformed into a vibrant community activity.

“We’re essentially creating a town square,” said Michael.

“Many of our markets offer community programming, cooking demonstrations and educational activities.” Of course, since farmers’ markets only source local products, there is plenty you can’t purchase at them, which benefits businesses in the surrounding community.

“We’ve had civic associations ask us to establish a market because of the benefits we bring to the community,” said Michael. “People that come to a market also spend their dollars at surrounding businesses. It’s complimentary — we help build the local economy where the market is located and, in turn, the regional economy from which our farmers are coming.”

IT ALL STARTS AT THE FARM At the end of the day, farmers’ markets, wherever they may be located, are facilitators. The local foods process starts at the farm, with farmers like Skip and

10

FINANCIAL PARTNER

Fred, who work hard every day to feed people. Farmers’ markets provide an additional marketplace for farmers to sell their product and expand their consumer base.

“It’s that time of year when you see something new,” said Jesse. “Whether it’s that first butternut squash, or strawberries or asparagus — it’s those touchstones that signify the changing of the seasons and an appreciation for all those working extremely hard to grow all this food. I know it’s not an easy job, so when I see new products coming in, I have the utmost respect for all of the hard work that went into producing it.”

“

Consumers taste and smell their way through the markets and ask questions of the farmer along the way.

- Michael Hurwitz, GrowNYC

”

Supporting Northeast Farmers through Farmers’ Markets Hundreds of farmers’ markets across the Northeast supply fresh, local farm products to consumers all summer, and many all year round. These markets provide an important outlet for many Farm Credit East members to connect directly with customers, while also supporting local communities.

In support of these efforts, Farm Credit East recently provided $500 grants to 20 Northeast farmers’ markets for promotion and development of the markets. Markets were selected by each of Farm Credit East’s branch offices. In addition, the Association donated 250 reusable bags, with messaging to support Northeast farmers and signage to promote the market. Following is the list of farmers’ markets that received funds.

Connecticut

New York – Central/Northern

• Northeast Connecticut Farmers’ Market, East Killingly

• • • •

Maine • Community Market, Houlton • Midcoast Winter Farmers’ Market, Topsham

Cooperstown Farmers’ Market, Cooperstown Lowville Farmers’ Market, Lowville Trumansburg Farmers’ Market, Trumansburg Village of Hamilton Farmers’ Market, Hamilton

New York – Eastern Massachusetts • Farmers’ Market at Forest Park, Springfield • Great Barrington Farmers’ Market, Great Barrington • Original Easton Farmers’ Market, Easton

• Goshen Farmers’ Market, Goshen • Grown on Long Island Farmers’ Market, Calverton • Troy Waterfront Farmers’ Market, Troy

New York – Western New Hampshire • Concord Farmers’ Market, Concord

New Jersey

• • • •

Canandaigua Farmers’ Market, Canandaigua Genesee Country Farmers’ Market, Inc., Batavia Hamburg Farmers’ Market, Hamburg Painted Post Farmers’ Market, Painted Post

• Collingswood Farmers’ Market, Collingswood • Trenton Farmers’ Market, Trenton

Looking for more locations to purchase farm fresh produce?

Visit Farm Credit East’s Farm Fresh Guide for a listing of resources to find local farm products throughout our seven-state region.

FarmCreditEast.com/FarmFreshGuide SUMMER 2015 SUMMER 2015

11 11

Farm Credit East …

A Deep Commitment to Young and Young and beginning farmers are a vital part of our agricultural community and Farm Credit East is committed to supporting them. Contributing to their success is inherent to our mission and business strategy. Programs such as our Young, Beginning, Small and Veteran, FarmStart and GenerationNext, help us deliver on this strategy.

Our commitment to new farmers starts with our Board of Directors who recognize the need to invest in the future of Northeast farming. The long-range strength and soundness of the agricultural community depends on individuals continuing to enter the industry. Specifically, the Board’s AgInitiative Committee focuses on efforts to assist young and beginning farmers in their development.

We are committed to young, beginning, small and veteran farmers in all aspects of our business, including credit, financial services and educational assistance. A cornerstone of our commitment to this segment is our long-standing, consultative approach to working with customers and applicants.

FARMSTART …

WORKING CAPITAL TO GET STARTED AND BUILD A CREDIT HISTORY FarmStart was established in 2005 to assist beginning farmers and new cooperatives during start-up by providing investments in working capital of up to $50,000. A foundation of this program is that each approved young farmer works with a FarmStart advisor, both during the development of their business plan and during the term of the investment. Since 2006, we have approved 156 FarmStart investments.

12

FINANCIAL PARTNER

FarmStart’s purpose is much deeper than just providing funds. It is envisioned as a key element in the success of start-up agricultural businesses. Not only will young farmers have the opportunity to develop an achievable business plan and successful credit record, but they will also learn the discipline of effective cash flow management.

FarmStart advisors are Farm Credit staff who volunteer for this program and undergo the necessary training. A FarmStart advisor provides ongoing financial and management training to help the young farmer develop financial management discipline and skills for a successful career in farming.

GENERATIONNEXT …

ADVANCING MANAGEMENT AND BUSINESS SKILLS Family farm operations are very special to American agriculture and Farm Credit East. Many of our farms are multigenerational with two or three generations involved. Today’s farms can be complex and managers are often called upon to master many aspects of the business, from motivating employees to understanding a balance sheet.

To assist young individuals who are becoming engaged in farm management, Farm Credit East developed the GenerationNext program. Through this program, specially trained Farm Credit East business consultants work with young farmers in a series of three seminars designed to advance management skills and business knowledge. Each seminar includes group discussions, idea sharing and opportunities to network.

Beginning Farmers Kevin and Lauren McKinzey, owners of Black Pearl Creamery, a sheep dairy in Trumansburg, N.Y., with their daughter, Ada, and FarmStart advisor, Jess May, of Farm Credit East’s Cortland, N.Y. branch office.

YOUNG AND BEGINNING FARMERS …

FARM CREDIT EAST SCHOLARSHIP PROGRAM …

SPECIAL INCENTIVES TO GET STARTED

INVESTING IN THE FUTURE

Farm Credit East provides a number of incentives to assist young and beginning farmers through our 21 branch offices. Each branch determines the best incentive or assistance for each individual farm.

• Paying fees associated with USDA – FSA loan guarantees • Reducing interest rates for young farmers with loan guarantees • Significant discounts for certain financial services that will facilitate the entry of new farms or enhance profitability, including consulting, tax preparation, appraisal and recordkeeping with specialized CenterPoint software

To support young people interested in an ag career, Farm Credit East offers scholarships to college students. Annually, Farm Credit East provides 31 scholarships for $1,500 each to help support individuals who are focused on a course of study that will enable them to become an integral part of the agriculture, commercial fishing or forest products industries.

In addition to support for college students, Farm Credit East’s Agricultural Leadership and Excellence program provides financial support for young farmers who are attending leadership and management educational programs to achieve greater success both on and off the farm.

HARVESTING A PROFIT …

FARM CREDIT NORTHEAST AGENHANCEMENT PROGRAM...

HELPING NEW FARMS FOCUS ON SUCCESS

SUPPORTING KEY EFFORTS

There are many challenges to running a successful farm.

As part of the Farm Credit East commitment to success, we developed our Harvesting a Profit curriculum, which is available upon request for no charge. The program covers five steps to successful management and extensive insights into how managers consider financial information.

Farmers can use Harvesting a Profit as a standalone guide or as part of a seminar learning session. Farm Credit East also permits other organizations to use Harvesting a Profit under a partnership agreement.

Through our AgEnhancement Program, Farm Credit has provided more than $1.7 million since 1996 to support young farmer development programs and youth programs in agriculture and forestry. Examples of programs supported by AgEnhancement are: Cornell Dairy Fellows, Northeast Dairy Challenge, FFA Star Farmer Program, Teachers Tour of Maine Forest Program, Young Dairy Leaders Institute, Ag in the Classroom and other programs at educational institutions.

SUMMER 2015

13

WASHINGTON Update Tom Cosgrove Vice President for Public Affairs

Current Situation: Mid-Year 2015 Farm Credit East is tracking a range of public policy issues in 2015. Some are specific to the Farm Credit System, while others are global in scope, such as the Congressional debate on international trade agreements. Farm Credit East has been pushing for action on some issues, like establishment of a new agricultural guest worker program, while on others, such as the EPA’s recent Waters of the U.S. (WOTUS) regulations, it is opposing the actions taken. The following summarizes the status of these important public policy issues.

AG LABOR Farm Credit East continues to keep a close eye on farm labor/immigration enforcement. The lack of a stable supply of farm labor and disruptions from immigration enforcement actions are both major concerns for Northeast agriculture and are causing hardships for many farms.

With major investments at risk and narrow windows of time for planting, pruning and harvesting, farm businesses cannot risk the loss of crops from a labor interruption.

Farm Credit East opposes legislation to mandate use of the e-verify system to determine employee eligibility (S. 1032 and H.R. 1147) until the establishment of a new agricultural guest worker program (for seasonal and year-round farm employees) administered by the U.S. Department of Agriculture and an adjustment to legal status has been made for current farm workers.

14

FINANCIAL PARTNER

Of note are the positive efforts by Rep. Chris Gibson (H.R. 1805 - cosponsors include Reps. Maloney, Katko, Reed, Stefanik and Collins) to reform the H2-A program to make it more workable, including a threeyear, year-round program for livestock and dairy operations. While any final legislation should also include an adjustment to legal status, this bill would provide for significant improvements over current law.

WOTUS Last year the Environmental Protection Agency (EPA) and Army Corp of Engineers proposed regulatory changes that expand the reach of the Clean Water Act. This regulatory change, referred to as WOTUS, broadens the interpretation of which waters may come under the jurisdiction of the Clean Water Act. While the EPA has argued that this is not a significant expansion, a number of agriculture and business groups have expressed strong concerns about the effects of these new rules.

Farm Credit East and hundreds of farm organizations urged withdrawal of the WOTUS rule in the open comment period held in the summer/fall of 2014. Unfortunately, many environmental organizations supported the proposed rule.

In May, EPA took action to finalize their rule and made very few changes to address the concerns of agriculture and the business community in general. Legislation to stop EPA from implementation of the current WOTUS regulations has passed the House of Representatives (HR 1732)

and is pending in the Senate (S 1140). At this point the outcome is unclear — the White House will work hard to keep Democrats in the Senate from supporting the repeal and President Obama may veto the legislation if it reaches his desk. The other approach that may play out later this year is to block funding for implementing the rule.

Farm Credit East supports efforts to stop implementation of the WOTUS rule.

This regulatory proposal was done without new legislative authority and would create additional regulatory burdens and costs to farmers and other rural businesses and landowners.

TRADE Congress has approved Trade Promotion Authority (TPA) legislation to help clear the way to consider the Trans-Pacific Partnership (TPP) agreement later this year. The TPP agreement includes the United States and 11 countries: Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam. While most Democrats are opposed to this trade legislation, it has support from Republicans and President Obama.

Most farm organizations, including American Farm Bureau and National Council of Farmer Cooperatives, are supporting Trade Promotion Authority and consideration of TPP; the exception in the farm community is National Farmers Union, which is actively opposing this trade legislation.

Farm Credit East contributed farm products from two Northeast farmer veterans, including honey from Ole McDonald’s Honey Farm in Fultonville, N.Y. (pictured above) and maple syrup from Peaceful Valley Maple Farms in Johnstown, N.Y.

Farm Credit East partnered with other Farm Credit associations across the country to sponsor an event on Capitol Hill to highlight the contributions of farmer veterans. Pictured above (L-R): Tom Cosgrove, Farm Credit East vice president; Peter Frizzell, Crop Growers Northeast marketing agent; Jamie Jones, Farm Credit East director and manager of Jones Family Farm in Shelton, Conn.; Jamie Critelli, former Army Reserve captain and owner of Floral Beauty Greenhouses in Elmira, N.Y.; Rick Janiga, Farm Credit East director and owner of R + D Janiga Enterprises in East Aurora, N.Y.; John Lemondes, retired Army colonel and owner of Elly’s Acres Farm in Jamesville, N.Y.; and Bob Smith, Farm Credit East executive vice president.

After months of maneuvering and setbacks, the TPA has been signed into law. Now the administration has to finalize negotiations in order to present the TPP before the end of this Congress where it will be subject to an up or down vote.

FARM ORGANIZATIONS SUPPORT FARM CREDIT While there are no specific proposals currently pending in Congress, one of the major commercial bank trade organizations continues to be critical of the Farm Credit System, as they have been for years — essentially seeking to reduce competition for its member banks.

In an April radio address, the organization’s president stepped up the attack — calling for elimination of the Farm Credit System.

In response to this statement, 42 agricultural and rural organizations expressed their support for the Farm Credit System and the need for both a strong Farm Credit System and commercial banking sector to meet the capital needs of agricultural producers and rural businesses.

The 42 organizations who signed the letter understand the value of the Farm Credit System, which provides a stable source of credit to rural America, and was able to lend, without interruption, during the financial crisis of 2008-2010.

A similar letter from 36 Northeast agriculture and forestry organizations has been prepared for the Northeast Congressional delegations. Farm Credit East appreciates the support of the organizations that signed on to the letter and, along with our national trade organization, the Farm Credit Council, will continue to tell members of Congress the story of how the Farm Credit System supports agriculture in the Northeast and across the country.

SUPPORT OF FARMER VETERANS On June 2, the Farm Credit Council, in conjunction with the Farmer Veteran Coalition, hosted a reception on Capitol Hill to highlight the contributions of farmer veterans. Farm Credit East was pleased that all of the Northeast members of Congress on the House Agriculture Committee agreed to serve as collaborators or honorary hosts for the event, including Chris Gibson (NY),

Ann McLane Kuster (NH), Sean Patrick Maloney (NY) and James McGovern (MA). Two Farm Credit East farmer veterans attended and the reception included maple syrup and honey from two other Northeast farmer veterans. Farm Credit East supports the Farmer Veteran Coalition and is committed to assisting veterans looking to get started in agriculture.

DAIRY Farm Credit East continues to follow the current dairy situation.

Prices have fallen significantly from the high levels of 2014, but equally as concerning are the recent disruptions in the marketing and processing of milk. This spring, some farms have received notices from buyers giving 30 days notice for the termination of their contracts, while manufacturing plants are at capacity and have struggled to keep pace with the current supply of milk.

Pictured above (L-R): Lemondes, Frizzell and Critelli with Congressman James McGovern (MA) and Dr. Michele Pfannenstiel, Maine chapter president and coordinator of New England activities for the Farmer Veteran Coalition.

There are no legislative proposals in Congress at this time, but a number of Northeast members have expressed their concerns.

Farm Credit East credit staff will continue to work with members as they manage their businesses through the current market conditions. We will also keep members and policymakers up to date on any new developments so they are armed with the best information possible as they navigate the current situation.

SUMMER 2015

15

Impact of Agriculture, Commercial Fishing, Forestry and Related Businesses in the Northeast Agriculture, commercial fishing and the forest products industries are all important contributors to the Northeast economy. Combined, these industries generate $12.6 billion in farm-gate value and create jobs for more than 154,000 people. Their economic importance is not limited to the direct farm-gate sales of that sector, but extends to other sectors of the economy. With value-added activity, including taxes and payroll on farms and activity from suppliers, such as veterinarians, seed dealers, equipment repair, etc., this impact grows to $21.6 billion and 219,607 jobs. In addition, employees of these establishments likely spend a major portion of their earnings buying goods and services from firms within their states. When products leave the farm, docks or forests, such as milk, processing fruit and vegetables, timber and fish, for processing, that impact grows to $103.4 billion in economic activity and 483,375 jobs. The bottom line is that agriculture’s economic impact cascades throughout state economies. For a full copy of Farm Credit East’s recently released report, Northeast Economic Engine: Agriculture, Forest Products and Commercial Fishing, visit FarmCreditEast.com/EconomicImpact.

VALUE AT FARM, FOREST AND DOCK

LOCAL COMMUNITY IMPACT

ECONOMIC IMPACT WITH PROCESSING ACTIVITY

CONNECTICUT

$725 Million 12,313 Jobs

GROWS TO

$1.1 Billion 13,928 Jobs

GROWS TO

$4.8 Billion 25,495 Jobs

MAINE

$1.7 Billion 19,572Jobs

GROWS TO

$2.8 Billion 36,235 Jobs

GROWS TO

$13.9 Billion 79,011 Jobs

MASSACHUSETTS

$1.3 Billion 16,599 Jobs

GROWS TO

$2.0 Billion 25,861 Jobs

GROWS TO

$12.7 Billion 60,760 Jobs

NEW HAMPSHIRE

$358 Million 7,010 Jobs

GROWS TO

$612 Million 9,495 Jobs

GROWS TO

$3.1 Billion 18,773 Jobs

NEW JERSEY

$1.5 Billion 25,861 Jobs

GROWS TO

$2.5 Billion 27,320 Jobs

GROWS TO

$12.8 Billion 58,006 Jobs

NEW YORK

$6.0 Billion 61,444 Jobs

GROWS TO

$10.5 Billion 86,193 Jobs

GROWS TO

$48.2 Billion 197,745 Jobs

RHODE ISLAND

$182 Million 2,069 Jobs

GROWS TO

$276 Million 3,852 Jobs

GROWS TO

$1.1 Billion 6,591 Jobs

VERMONT

$847 Million 10,016 Jobs

GROWS TO

$1.6 Billion 16,723 Jobs

GROWS TO

$6.6 Billion 36,994 Jobs

TOTAL

$12.6 Billion 154,884 Jobs

GROWS TO

$21.6 Billion 219,607 Jobs

GROWS TO

$103.4 Billion 483,375 Jobs

NOTE: Data was prepared by researchers at the University of Connecticut, with funding from Farm Credit East, using IMPLAN economic impact software and 2013 data, as that was the most recent year for which complete data was available. Where possible, we used farm, commercial fishing and forest-products industry data.

Totals may not add up due to rounding.

16

FINANCIAL PARTNER

Meet Our 32 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 $48,000 in scholarships to help them on their way to becoming the Northeast’s future leaders.

Our scholarships support students with diverse 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

Leanne Golembeski New Milford, CT

University of New Haven Major: Aquaculture and biology Career path: Aquaponic food production Leanne’s SAE experience has solidified her career goal to create an agri-business that utilizes aquaculture, aquaponics and hydroponics to make fresh wholesome fish and plants readily available for consumption.

Sarah LaRose Bethlehem, CT

University of Florida Major: Ag education Career path: Ag teacher educator As a former FFA member, Sarah is excited to educate future ag teachers and to work with student organizations like FFA.

Rebecca Remeika Northfield, CT

Cornell University Major: Veterinary medicine Career path: Large animal veterinarian With her vast experience working on different farms, including swine, dairy, poultry and greenhouse, Rebecca intends to work as a veterinarian in the poultry industry.

MAINE

Whitnie Bradbury Bridgewater, ME

Husson University Major: Business administration Career path: Ag business and marketing Whitnie’s passion has been Future Farmers of America (FFA). She plans to put those leadership skills earned through FFA to work in her future career selling and promoting agricultural products.

Nick Sparks Orono, ME

University of Maine Major: Forestry Career path: Forestry owner Nick is excited to be a part of the long-standing tradition of logging in Maine by first working as an operations forester before owning his own forestry company.

Harriett Train Long Island, ME

University of Maine Major: Marine science Career path: Fisheries management Harriet aspires to contribute to the successful management of Maine fisheries so that they are sustainable for both the ocean from which they come and the communities that depend on them.

MASSACHUSET TS

Monica Aguilar Millis, MA

University of Massachusetts Major: Ag education and awareness Career Path: Agricultural educator After graduation, Monica plans to join the Peace Corps’ agricultural sector. With this experience, she then plans to work as an agricultural educator to foster passion for agriculture and educate about the importance of the industry.

Nicholas Turnberg East Longmeadow, MA

UMass Stockbridge School of Agriculture Major: Arboriculture and community forest management Career Path: Owner of logging/tree care company In high school, Nicholas began his own forestry and tree care business and produces maple syrup. He hopes to expand both businesses after earning a college degree.

SUMMER 2015

17

NEW HAMPSHIRE

Hannah Merrill Stratham, NH

Cornell University Major: Ag sciences Career Path: Dairy farm manager/owner Hannah looks forward to bringing the new information and techniques learned in college back to her family’s fourth generation dairy farm.

Daniel Tauriello Durham, NH

Queens, NY

SUNY Cobleskill Major: Ag business Career Path: Agricultural educator Jessica’s participation in her high school ag program sparked her interest in agriculture. She aspires to a career in agricultural education to connect the next generation of students to agriculture in the same way.

Gabrielle Domagala Boonville, NY

University of New Hampshire Major: Marine biology & ocean engineering Career Path: Commercial shellfish hatchery manager/owner Through graduate research, Daniel plans to further his understanding of the biology and economy of aquaculture to expand the shellfish industry in New Hampshire.

SUNY Cobleskill Major: Ag business Career path: Dairy nutritionist and farm owner As a dairy nutritionist, Gabrielle strives to give back to the dairy industry which has been instrumental in her life. She looks forward to assisting farmers in feed efficiency and quality.

NEW JERSEY

Holland Patent, NY

Christine Charles South Orange, NJ

Purdue University Major: Ag engineering Career path: Ag engineering As an agricultural engineer, Christine hopes to make a productive impact on worldwide hunger by working to solve food access problems both domestically and internationally.

Kyle Clement Pedricktown, NJ

Rutgers University Major: Agriculture and food systems Career path: Farm manager Kyle’s interest in precision agriculture is driving his career aspirations. His goal is to develop soil-preserving agricultural practices that are environmentally friendly and profitable.

Julianna Nienart Hillsborough, NJ

Rutgers University Major: Environmental science Career path: Agricultural research and development Julianna plans to pursue a career in the development and application of sustainable agricultural systems to make today’s farms more productive and efficient, while decreasing their carbon footprint.

N E W YO R K

Zachary Abbott Venice Center, NY

SUNY Morrisville Major: Dairy management Career path: Dairy farm manager/owner Zachary has been involved in 4-H and FFA for many years and after graduation plans to return to his family’s dairy farm and increase the size of their farming operation.

18

Jessica Arroyo

FINANCIAL PARTNER

Stephanie Finn Cornell University Major: Animal science Career path: Farm manager/owner Stephanie’s goal is to return to her family’s dairy farm to expand the herd from 700 to 1,500 milking cows, while also making improvements and expanding efficiency on the farm.

Gavin Gates Burdett, NY

Cornell University Major: Animal science Career path: Farm manager/owner Gavin is interested in alternative energy sources and pasture-based dairy systems and hopes to own a large scale dairy farm that is diversified and vertically integrated.

Kylie Hint Cuba, NY

SUNY Alfred State Major: Environmental technology Career path: Soil and water conservation and management Growing up in the agricultural community inspired Kylie’s desire to work with the public, landowners and farmers to increase their knowledge and best practices for soil and water.

Kassidy Hitt

North Hoosick, NY Cornell University Major: Animal science Career path: Dairy nutritionist Having shown cows since she was five, Kassidy always knew that she wanted to pursue a career in dairy nutrition and is currently on a path to achieve that dream.

Adam Levi

Jacob Rathbun

Paul Smith’s College Major: Forest operations Career path: Logger Adam aspires to take over his family’s logging business and also to create a more efficient production of heat with minimal waste through the use of wood chips instead of pellets.

Cornell University Major: Viticulture/enology Career path: Grape farmer and winemaker After graduation, Jacob hopes to work as a vineyard manager abroad to learn new grape growing techniques. He then plans to bring those skills back to the Finger Lakes to open his own vineyard and winery.

Karen Luong

Rachel Stone

Finger Lakes Community College Major: Plant science Career path: Plant pathology Karen plans to research bacterial, viral and fungal diseases in crops to help farmers grow crops efficiently and to create disease resistant plants.

SUNY Cobleskill Major: Dairy production and management Career path: Dairy farm owner or herd manager Rachel plans to either own or work as a herdsman on a dairy farm, but her 10 years of 4-H experience have also inspired her to be an advocate for the industry.

Kristen Mason

Christopher Sweeney

University of New Hampshire Major: Equine industry and management Career path: Farm/barn manager Kristen’s experience at farm camp has inspired her to become the manager of an equine breeding facility with multiple enterprises, including an educational program for the public.

Cornell University Major: Animal science Career path: Dairy Farm manager/owner Since a young age, Christopher has been helping on his family’s 105-year-old dairy farm. He plans to return to that same farm to educate about the vital role of the dairy industry.

Stephanie McBath

Ashley Willits

Cornell University Major: Animal science Career path: Ag communications Stephanie fell in love with the industry after showing her first calf. In her future career, she hopes to help bridge the gap between producers and consumers.

Morrisville State College Major: Ag business Career path: Ag communications Through participation in 4-H and FFA, Ashley’s goal has been to serve as the link between producers and consumers. She plans to continue that goal through a career in ag communications.

Inlet, NY

Rushville, NY

Shrub Oak, NY

Schuylerville, NY

Kelsey Neckers

Naples, NY

Cooperstown, NY

Appleton, NY

Copenhagen, NY

Clymer, NY

RHODE ISLAND

Cornell University Major: Animal science Career path: Agricultural financial services Having been raised on a dairy farm, Kelsey always knew she wanted to return to the industry, which is why she plans a career to help farmers become more efficient, knowledgeable and profitable.

Jonathan Confreda

Valerie Nolan

East Patchogue, NY

Warwick, RI

Bryant University Major: Business management Career Path: Farm manager/owner Having grown up with easy access to healthy food, Jonathan plans to return to his family’s farm to expand its existing education program to further educate about healthy eating habits.

Suffolk County Community College Major: Retail business management Career Path: Manager of family’s ag retail business Growing up on her family’s farm, agriculture is Valerie’s passion. She looks forward to becoming a part of the future of agriculture by providing farm fresh produce to her community.

Denille Pingrey Strykersville, N.Y.

The Pennsylvania State University Major: Animal science Career path: Dairy nutrition and consulting Experience on her family’s dairy farm and 11 years of 4-H developed Denille’s passion for agriculture. She knows the industry is always changing and plans to be a part of that change in her future career.

SUMMER 2015

19

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

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

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

Address Service Requested

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: Kristie Schmitt, Editor, Farm Credit East, 240 South Road, Enfield, CT 06082-4451. CALL: 860.741.4380.

E-MAIL: kristie.schmitt@farmcrediteast.com.

Copyright © 2015 by Farm Credit East, ACA. All rights reserved. Farm Credit East is an affirmative action, equal opportunity employer.

FINANCIAL PARTNER is printed on recycled paper.

COMMUNITY Support Northeast Future Farmers of America Receives Farm Credit Grant

Farm Credit Northeast AgEnhancement Program recently awarded $12,600 to the Northeast chapters of Future Farmers of America (FFA) to support the attendance of New England and New York FFA leaders at the National Leadership Conference of State Officers (NLCSO). Forty-two state officers from the seven states attended this year’s conference.

NLCSO, the second training conference for state FFA officers, helps officer teams identify strengths and weaknesses. The conference also provides interpersonal communication strategies and presentation delivery techniques.

Sherry Reed, a past state officer commented, “NLCSO offers training in leadership, diversity and team work that members will use throughout their lives. My experiences from this

20

FINANCIAL PARTNER

conference have helped in customer service, sales, law enforcement and management.”

Maine Secretary-Treasurer, Jorden Canney, added, “NLCSO helps determine each of our team members’ skills and gives us a chance to spread our wings outside our comfort zone.”

AgEnhancement Grants since 1996 Total Grant Dollars:

$1.7

million

Total Projects Supported:

632

For Details: • Bob Smith: 800.562.2235 • Email proposals to: AgEnhancement@FarmCreditEast.com • Proposal deadlines: April 1, August 1, December 1 • FarmCreditEast.com/Industry-Support.aspx