Fall 2016 Financial Partner Magazine

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FarmCreditEast.com

LEARNING

BY DOING EDUCATING NORTHEAST AGRICULTURE’S FUTURE GENERATIONS

_ INSIDE _ A field at South Lewis Central School, in Turin, N.Y., planted and maintained by South Lewis agricultural education students. All varieties are set for fall harvest and go to the local cafeteria or food bank.

News & Views 2 | CEO Letter 3 | Cover Story 4 Fresh Perspectives 10 | Partner to Your Business 12 | Milestone Year 14 Funding for Ag 16 | Washington Update 18 | FarmStart 20

N EW &V IEW S S

FarmCreditEast.com

Drought Conditions Continue to Affect the Northeast

IMPORTANT! IRS Regulation Deadline Changes • Partnership (1065) tax returns are due a month earlier: March 15, 2017 • W2’s and 1099s will need to be submitted not only to employees, but also to the Social Security Administration and IRS by January 31, 2017 To ensure your partnership return and employees’ payroll information are filed in time for these earlier deadlines, please submit year-end information to Farm Credit East as soon as possible.

Growing Talent at Farm Credit East We have an outstanding team at Farm Credit East, but are always seeking new talent to join us! Do you know someone who would be a great addition to Farm Credit East? Someone with the drive and passion to serve Northeast agriculture and rural communities?

Direct them to FarmCreditEast.com/careers to view our open positions, or put them in touch with your local branch office. Even if we don’t currently have an open position, we’d love to get the conversation started.

Upcoming Webinars: • Grants & Grant Writing: December 7, 11:00 AM • The Food Safety Modernization Act: How to Comply: December 20, 11:00 AM • 2017 Dairy Outlook Webinar: January 20, 11:00 AM For more information: FarmCreditEast.com/webinars

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FINANCIAL PARTNER

Much of Western New York, Massachusetts, Southern New Hampshire and parts of Maine are now experiencing “extreme drought” conditions, according to the National Drought Monitor. More than one-third of New York State is now in “severe” or “extreme” drought and roughly half the state has reported “short” or “very short” soil moisture according to the USDA. Farm Credit East branch managers across the region are anticipating crop yields to be anywhere from 25 percent to as much as 50 percent lower in impacted areas.

Producers in drought affected areas are encouraged to contact their local Farm Service Agency (FSA) office for assistance. Affected producers with crop insurance should contact their Crop Growers agent directly or contact the Crop Growers, LLP main office at 800-234-7012.

Learn more at FarmCreditEast.com/drought

Farm Credit East’s Annual Photo Calendar Contest Congratulations to all of the talented photographers whose photos fill the pages of Farm Credit East’s 2017 Agricultural Views calendar. And thank you to the more than 1,000 entries we received representing unique views of the Northeast’s diverse agricultural industries. For a copy of the 2017 Agricultural Views calendar, please contact your local branch office.

And believe it or not, we’ve already begun collecting photos for our 2018 calendar! The deadline may be months away, but we encourage you to submit your photos as they’re captured — including those snowy winter scenes.

We look forward to seeing your submissions!

FarmCreditEast.com/Calendar Deadline: July 31, 2017

CHALLENGING TIMES REQUIRE

BOLD ACTIONS

CEO’s MESSAGE

Bill Lipinski, CEO, Farm Credit East

As we approach the holidays, I find

agriculture and the Northeast dairy

At Farm Credit East, we’re in the

myself reflecting on the past year and

industry, but I also agree with a key

business of agriculture. We’ve worked

starting to plan for the year ahead. I am

finding in the paper: In order to effectively

with our customers through challenging

sure many of our customers can relate.

plan for long-term profitability, manage

times before. The greenhouse, sod and

2016 has been a challenging and

risk and preserve wealth, producers will

nursery industries experienced a very

need to take bold actions.

difficult period in 2008-2011 when the

difficult year for many producers. With significantly lower commodity prices and a

Such actions include reducing costs of

great recession dramatically reduced

severe drought throughout major parts of

production and positioning the business

discretionary spending and housing

the Northeast, agricultural producers have

to be successful in a marketplace where

starts. The businesses that applied strong

faced increasing costs with lower returns

marketing efforts, but also found ways

for their efforts.

to cut costs and gain further efficiencies,

Throughout this period, the Farm Credit East team has been close by to assist with your credit and financial service needs. Our staff has been proactive in discussing the financial realities and responsive to your requests.

This is appropriate in a customercentric organization — our success is based on the effective support of our customers. We also need to be mindful to do what’s best for the cooperative.

Sometimes this includes difficult discussions, but it’s those discussions that are a part of our long-term commitment to your success.

remained successful. It was not easy, but

With proactive business decisions and working closely with your farm advisors, I know producers will persevere.

Our Knowledge Exchange program

it was those producers who took bold actions that remained successful.

With proactive business decisions and working closely with your farm advisors, I know producers will persevere.

There is a bright future ahead for Northeast agriculture, as evidenced by the increasing interest in our nation’s youth to get an early start in agriculture through secondary agricultural education programs. You’ll read more about this growing field in this issue’s cover story.

I sincerely hope you enjoy your Thanksgiving. There is no better holiday to appreciate the contributions of American

recently released a paper titled Dairy

agriculture. Unfortunately many in our

Industry Reset Post-2014. The report

society take this for granted. Our country

examines the current dynamics in dairy

is blessed with an abundant, safe and

markets and suggests that we may be

we may not see milk prices spike nearly as

healthy food supply. And I hope that each

entering a new period of milk pricing that

high as we did in 2014. Northeast farmers

time American farmers’ think about the

could be much more difficult than the

have worked through difficult times in

difficulties they face, they also remember

three-year cycles of the past decade. The

the past, so I am not worried about their

that their contributions are basic to the

paper looked at a number of impacting

resiliency. My concern is that some will

economic foundation of this country and

factors, including changes in international

delay making necessary changes in their

make a difference in people’s lives

markets, European Union dairy policy and

business and will continue to operate as if

every day.

the value of the dollar.

there will be increased prices in the near

Without question, I am very optimistic about the long-term success of Northeast

future. This hesitation could make longterm success more difficult.

FALL 2016

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LEARNING

BY DOING

Students at John Bowne High School, in Queens, NYC, transplanting at the school’s farm.

EDUCATING NORTHEAST AGRICULTURE’S FUTURE GENERATIONS Across the United States, nearly 58,000 jobs in fields related to food, agriculture, renewable natural resources and the environment are expected to open annually over the next five years, according to a study released by Purdue University in May 2015. This makes sense given the world’s population is predicted to grow by two billion people over the next few decades. So how will our nation develop the skilled workforce in these industries necessary to feed a growing population?

Stimulating interest in agriculture-related fields is just as, if not more, important today than it was nearly 100 years ago, when agricultural education was introduced into the public education system with Congress’ passage of the Smith-Hughes National Vocational Education Act in 1917. This act provided federal funds to promote vocational agriculture to train people “who have entered upon or who are preparing to enter upon the work of the farm.”

Today, more than one million students participate in formal agricultural education programs offered in grades seven through adult across the 50 states and U.S. territories — and this continues to grow.

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FINANCIAL PARTNER

C O V E R

CLASSROOM/LABORATORY INSTRUCTION (CONTEXTUAL LEARNING) The classroom component offers inquiry-based learning.

Many schools utilize pathways, which build on basic concepts taught in the introductory course and allow students to focus on specific aspects of the agricultural sciences, such as plant, food, environmental or animal science, mechanics and ag business.

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SUPERVISED AGRICULTURAL EXPERIENCE (SAE) PROGRAMS (WORK-BASED LEARNING)

2014-15

2013-14

2012-13

2011-12

2010-11

2009-10

2008-09

2007-08

2006-07

The work experience enables students to apply what they’ve

2005-06

4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0

HOW IT’S STRUCTURED

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2004-05

MEMBERS ENROLLED

Ag Education Enrollment

S T O R Y

learned in the classroom as they explore multiple careers and occupations. Students take on projects to raise, buy or sell animals, crops, seed, fertilizer, equipment, etc.; they work at an agricultural, food or natural resources-related business to “learn by doing”; they plan and conduct agricultural experiments; or they

CONNECTICUT MAINE MASSACHUSETTS NEW HAMPSHIRE

NEW JERSEY NEW YORK RHODE ISLAND

complete a service project.

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INTEGRATED STUDENT LEADERSHIP Organizations such as Future Farmers of America (FFA) or

National Young Farmer Educational Association, offer awards and recognition, competitions, conferences and other activities and events, to encourage leadership development by enhancing

Over the past 18 months, Shari Lighthall, professional development specialist at Cornell University, has had inquiries from more than 60 New York schools looking to start or reinvigorate an agricultural education program.

“Students exposed to agricultural literacy and education understand the vital role that agriculture plays in our global food and fiber system,” said Shari.

To find out more about these unique programs to educate agriculture’s next generation, Farm Credit East recently sat with a few Northeast ag educators. The discussion included ag education teachers, administrators and program leaders — some of whom graduated from the same programs where they now teach.

SO, WHAT IS AGRICULTURAL EDUCATION? Simply stated, its mission is to prepare students for successful careers and a lifetime of informed choices in the agriculture, food, fiber and natural resources systems. From the valleys of rural communities to urban centers, agricultural education provides focused learning for students interested in agriculture and starts them early on their career path by applying relevant, core academic concepts to food and fiber systems. This training prepares some students for careers in agriculture-related fields and for others, it educates about the importance of food and fiber to make informed choices throughout their lives.

communication, decision making and technical skills.

With this structure in place, each school implements the ag education program in the manner that works best for its students — and as we learned from our discussion, there is a variety of approaches. At some schools, classes are in addition to the traditional course work, similar to an elective; whereas at others it is integrated into the curriculum so that approved courses can supplement a science credit.

SCOPE OF PROGRAMS To garner interest, some schools offer ag education starting in middle school, as is the case at Madison Central School in Madison, N.Y., where Paul Perry is an agriculture teacher. “It’s a really nice opportunity for students to get a broad understanding of agriculture before considering ag education courses as freshmen,” he explained.

Freshmen at Madison Central School can opt to enroll in a basic agriculture, food and natural resources (AFNR) course. The following year, they can branch off into more specialty classes, such as plant science, horticulture or ag mechanics.

Cumberland Regional High School in Cumberland, N.J., follows a similar structure; students can enroll in an introductory agriculture course their freshman or sophomore year, followed by more specific agricultural pathways, explained agriculture teacher Nicole Smith.

FALL 2016

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Additionally, the school is part of a “choice” program. This

Madison Central School’s students acquire similar skills.

lottery program allows students from other districts to apply

“Regardless of the course’s focus, the underlying themes and

to attend Cumberland Regional High School specifically to

training are the same. Each course is designed to instill career

participate in the agriculture program. Through a partnership

skills, such as teamwork, public speaking, interviewing, financial

with Rutgers University, Cumberland students can also earn

management, marketing or preparing a PowerPoint presentation,”

college credit for agricultural education courses.

said Paul.

Another unique agriculture program is offered at John Bowne

“Students learn skills they can use throughout their lives —

High School in Flushing, Queens, NYC. Of the 3,800 students

whether for a college interview or a job interview,” he continued.

enrolled, 600 are enrolled in the school’s educational option for

“These are the types of skills that are essential.”

agriculture.

“Our students can come from all five boroughs, with the

Forrest Hess, agricultural education teacher in Letchworth Central School District in Gainesville, N.Y. indicated, “We are

majority from Queens, so most have limited exposure to

often the last form of formal training for students, so we try to

agriculture,” said Steve Perry, assistant principal at John Bowne.

focus on job ready skills that can help students be respectful,

“We try to provide an expanded view of agriculture and introduce

honest, hardworking and productive members of their

them to a variety of job opportunities within the field — from

communities, regardless of their chosen career path.”

small to large animal science, exotic animal science and plant sciences as well.”

EVOLVING FOR MODERN AGRICULTURE Ag education curriculums have been evolving with the modernization of today’s agriculture. “We’re preparing students for high demand careers and higher education in agriculture,” explained Shari Lighthall. “Today’s students are focused on contemporary approaches to current trends, with courses in biotechnology, environmental sciences, animal genetics, alternative energy, plant DNA, international agriculture and food science, to improve our food supply by producing higher yields with greater food safety standards.

“Agricultural education ensures that we have an adequate workforce to grow, harvest, transport and market the products we need for our growing population,” she continued.

Steve agreed. “I’ve been in ag education for 34 years and I think most ag teachers would agree that today’s programs are a lot

John Bowne students enter the program as freshman and remain enrolled for all four years. In addition to one agriculture

Today’s students are also more academically oriented, with

course each year, students participate in a ‘land lab’ summer

many students continuing to earn two- or four-year degrees. This

between their freshman and sophomore year, where they’re

is resulting in more college-prep focused classes. “I think the

given a plot of land to grow a variety of fresh produce. Students

industry demands this, which is a really positive change,” said Steve.

must also complete a work experience, which Steve says is the

Maria also noted that many of today’s ag students did not grow

program’s biggest draw. The work experience is fulfilled with 300

up on farms, so the focus has shifted to educating students about

hours in an agriculture-related business or a summer spent living

the broad picture of agriculture. “A big part of our job today is

and working on a New York farm.

just to bring them up to speed on what agriculture is and why

DEVELOPING TOMORROW’S LEADERS Through SAE and FFA involvement, students gain hands-on

it’s important,” she said. “We’re teaching them to be informed consumers — agriculturally literate.”

Nicole emphasized the same sentiment. “Without farmers,

career training and experience. “The leadership skills are such

there would be no food, so it’s vital to educate the next generation

an important piece of their education,” said Maria VanderWoude,

to ensure we have continuous generations interested in

New Hampshire FFA executive director.

agriculture.”

John Bowne High School’s land lab summer focuses on

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more research, science and technology based.”

Gleason Walley, agricultural science teacher at Chateaugay

everyday career skills like arriving on time, working together,

Central School in Chateaugay, N.Y., also stressed the increasing

job safety and record-keeping. “This hands-on training prepares

importance of career exploration. In seventh grade, his students

students for when they go on to actual job sites to complete their

complete presentations on ag-related careers, and he said the

work experience,” explained Steve.

students are always amazed to learn how many options are available.

FINANCIAL PARTNER

C O V E R

OF THE

57,900

NEW JOB OPPORTUNITIES EACH YEAR:

46%

WILL BE IN AGRIBUSINESS SUCH AS FARM LABOR SPECIALISTS, AGRICULTURAL ECONOMISTS AND FINANCIAL ANALYSTS

27%

WILL BE IN SCIENCE, TECHNOLOGY, ENGINEERING AND MATHEMATICS (STEM) RELATED FIELDS, SUCH AS PLANT AND ANIMAL SCIENTISTS, PRECISION AGRICULTURE SPECIALISTS AND LARGE ANIMAL VETERINARIANS THESE FIELDS ARE ONLY EXPECTED TO GROW

15%

S T O R Y

“Our intent is to open students’ eyes to the availability and types of jobs available in ag-related fields. That there are more opportunities than just working on a farm,” he explained.

Steve concurred. “No matter the ag subject area, we always try to reference what types of jobs would utilize the information we’re learning.”

AGRICULTURE EDUCATION’S FUTURE “I do worry about the future of our field because we have a hard time finding ag teachers,” said Steve. “We need to do a lot more recruitment efforts to lure people into this wonderful field to keep agriculture programs viable.”

Paul also worries about the challenges outside the classroom. “I’ve found so much success in the program itself, but it’s expensive to maintain a greenhouse facility and we face pressure to do other things with the valuable land that is so important to the curriculum.”

At the same time, the John Bowne School doesn’t have the capacity to accept all of the students that would like to attend its agriculture program, which speaks volumes to its value and importance.

“For many of our students, this place has been home,” said Steve. “They’re the first to arrive in the morning and the last to leave at night. The ag education program allows students to put into action their passion and see end results.”

“The field trips and FFA activities also develop stronger connections with students,” said Paul. “As an educator, this is so rewarding. To make a difference in students’ lives — motivate them, challenge them and give them opportunities they may not have had.”

Nicole can attest to this connection. “As a graduate of Cumberland’s program, I want students to have the same experience I did,” she says. “I enjoy seeing students’ knowledge of agriculture broaden as they realize it’s much more than they ever thought.”

“It’s amazing to see students’ success,” added Maria. “Especially for those students who felt like they had no futures in front of them. Ag education helps them to discover that they can have very bright futures.” And with the projected increase in jobs in agriculture and related fields, agriculture education programs will continue to be an important avenue for students to seize those opportunities.

New Hampshire student taps a maple tree.

WILL BE IN PRODUCTION AGRICULTURE SUCH AS FARMERS, FOREST MANAGERS AND VITICULTURISTS

12%

WILL BE IN EDUCATION, COMMUNICATION AND GOVERNMENTAL SERVICES, SUCH AS AG EDUCATORS, EXTENSION AND RURAL DEVELOPMENT SPECIALISTS -PURDUE UNIVERSITY COLLEGE OF AGRICULTURE, MAY 2015 FALL 2016

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SUPPORTING NORTHEAST AGRICULTURAL EDUCATION

Farm Credit East chief business officer, Jim Putnam, with Amanda Thomson, agricultural teacher at Middletown High School in Middletown, Conn., and this year’s FFA Star Farmers at the Big E

Farm Credit East is committed to the future of Northeast agriculture, and an important part of that commitment is development of the next generation of agricultural producers. Farm Credit East supports this development through various financial contributions and programs to train and grow the industry’s next generation. This same commitment resonates through our team of employees who dedicate countless hours to organizations and programs that promote and encourage agriculture, forest products and commercial fishing across the region.

CONTRIBUTIONS OVER THE PAST 5 YEARS $100,000 Curriculum for Agricultural Science Education (CASE) • $50,000 committed toward the development of a CASE agricultural business course.

• $50,000 toward educator scholarships. To date, 15 of these scholarships have been awarded.

$100,000 Good Will-Hinckley A joint contribution of Farm Credit East and CoBank funded an expansion of the Maine Academy of Natural Resources (MeANS) on the Good Will-Hinckley campus in Fairfield, Maine. This contribution was made over two years, starting in 2015.

$228,000 College Scholarships Each year, Farm Credit East awards $1,500 college scholarships to students pursuing a full-time, post high school education in a field related to agriculture, forestry or commercial fishing. Over the past five years, Farm Credit East has awarded $228,000 in scholarships to more than 150 deserving students.

$600,000 Cornell University Together with CoBank and New York farmer Sheldon Brown,

Farm Credit East and CoBank each committed $250,000, to be paid over five years. Brown, who graduated from Cornell in 1968, committed $100,000.

$20,000 University of Massachusetts-Amherst (UMass) A joint contribution of Farm Credit East and CoBank supported a partnership between the Massachusetts Farm Bureau Federation and UMass to create a new undergraduate Agricultural Learning Center on campus. This hands-on living classroom enables students to pursue active learning about all forms of agriculture, including the farming, horticultural and landscape industries.

$7,500 Finger Lakes Community College Funds supported the building of a Viticulture Center at Finger Lakes Community College, including replacement of specialized equipment and enhanced educational opportunities.

Additionally, in 2015 alone …

• Farm Credit East branch offices provided more than $118,000 to support ag youth programs • The Farm Credit Northeast AgEnhancement program

Farm Credit East provided a grant to support a faculty fellowship

awarded $65,600 in grants to support programs, projects or

focused on agricultural sustainability and student scholarships.

activities that assist in the development of young and beginning farmers.

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FINANCIAL PARTNER

PROGRAMS SUPPORTING THE NEXT GENERATION Farm Credit Fellows Farm Credit East partners with Cornell University, University

Young, Beginning, Small and Veteran Farmer Incentives This program is designed to help this growing customer

of Connecticut, University of Maine and University of Vermont to

segment get started in agriculture through special incentives,

administer this program which provides students the opportunity

such as discounts on farm accounting software, tax preparation,

to learn, hands-on, how the lending process works.

consulting and appraisal, for a period of up to five years. In 2015,

FarmStart Provides working capital investments of up to $75,000 to northeast agricultural businesses showing promise of success.

Each participant completes a business plan and works closely

Farm Credit East branch offices offered more than $342,000 in discounts to young, beginning, small and veteran farmers.

Harvesting a Profit The “profitability guide” is targeted to students and/or farmers

with a Farm Credit advisor who is knowledgeable in financial

beginning a career in production agriculture with minimal

management.

exposure to financial analysis, farm management, marketing and

GenerationNext This seminar series is designed to advance the management

economics. Additionally, Farm Credit East hosted a three-part webinar series last November that went into greater detail on how to measure farm profitability.

skills and business knowledge of the next generation of farm operators. Each seminar includes group discussions, idea sharing and networking opportunities.

CURRICULUM FOR AGRICULTURAL SCIENCE EDUCATION Empowering teachers for student success in STEM Introduced in 2007, the CASE curriculum aims to implement

AG EDUCATOR SCHOLARSHIPS Farm Credit East provides scholarships to Northeast educators attending institutes offered by CASE. The educator must teach or plan to teach agricultural or natural resources courses within the seven states served by Farm Credit East.

a national curriculum for secondary agricultural education

Scholarships cover up to 50 percent of the cost of the CASE

to enhance the rigor and relevance of agriculture, food and

institute, not to exceed $1,000.

natural resources (AFNR) subject matter. The CASE curriculums

Learn more: FarmCreditEast.com/ageducation

utilize science inquiry to promote common understanding of agricultural concepts. In addition to incorporating STEM (science, technology, engineering and math) principles, CASE offers specific pathways in subjects like plant and animal science to build on the principles taught in the introductory course.

Paul Perry, agriculture teacher at Madison Central School,

Agricultural education teachers completing a lab at a 2016 CASE Institute held at Vernon-Verona-Sherrill High School.

is CASE certified and really likes the curriculum because it is highly organized, but also flexible. “Sometimes with premade curriculums, you don’t have the ability to make changes,” he commented. “With CASE, I can make the lesson my own with slight modifications, but still complete what’s outlined.”

Steve Perry, assistant principal at John Bowne High School, has had a few teachers go through a CASE training and commented, “It’s great! Teachers come back psyched about the experience and look forward to integrating it into our curriculum, which they’ve done very successfully.”

Learn more: Case4Learning.org

FALL 2016

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AGRICULTURE EDUCATION OUTSIDE OF THE CLASSROOM

FARM CREDIT

FRESH PERS EARLIER THIS YEAR, THE FARM CREDIT SYSTEM’S FRESH PERSPECTIVES PROGRAM SELECTED ONE HUNDRED INDIVIDUALS OR ORGANIZATIONS WHOSE EFFORTS ARE SHAPING THE FUTURE OF AGRICULTURE AND RURAL COMMUNITIES. FARM CREDIT EAST WAS PLEASED TO HAVE THIRTEEN NORTHEAST LEADERS RECOGNIZED. HERE WE SALUTE THREE OF THOSE HONOREES WHO ARE WORKING TO EDUCATE THE PUBLIC ABOUT AGRICULTURE.

In 1993, Chris Fesko was working on the family dairy farm when a woman stopped her car to ask if she could take a picture of Chris’ cow. The woman was pointing to a horse.

That led to the birth of Chris’ “On the Farm” video series. With her background in education and knowledge of the dairy industry from operating Fesko Farms, Inc., a 600-cow dairy in Skaneateles, N.Y., Chris began to create videos that gave a close-up realistic view of modern farm life, from planting to harvesting, as well as the journey of a log, the birth of farm animals and how farm equipment works.

CHRIS FESKO Skaneateles, N.Y.

Today the series is comprised of 11 videos and has won eight Parents Choice Awards.

Three years after making her first video, Chris developed a school curriculum with modules like “Corncob Calculation.” In 2000, she renovated an old barn to become the Discovery Center. Today, this facility hosts thousands of students, using farm examples to teach problem solving and simple mechanics.

Chris believes that every moment that passes is a moment to learn. She also recognizes the desire of many people to understand farming, especially children.

“It was never about money,” says Chris. “Instead, I wanted to help farm kids feel good about growing up on a farm and inspire non-farm kids to want to grow up to be farmers.”

Learn more: Fesko.com

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FINANCIAL PARTNER

SPECTIVES For 30 years Nancy Robbins has been devoted to educating the public about agriculture through an agri-tourism operation she established in Sackets Harbor, N.Y. Nancy recognized early on the opportunities agri-tourism provides to educate the public about how their food is grown. So in 1986, she established Old McDonalds Farm at the family farm.

“I was a ‘city girl’ before I married a farmer, so I have a unique perspective of how the non-farm public views

NANCY ROBBINS Sackets Harbor, N.Y.

agriculture,” explains Nancy. “I am inspired by the smiles and awe on the children’s faces when they see a calf being born; likewise, the nodding heads of adults when they tour our dairy farm and see how well our animals are cared for.”

Three decades later, the farm continues to attract more than 1,000 visitors a day. The public can take a wagon ride through each of the dairy barns as Nancy narrates the tour with facts about the farm operation, cow comfort and other facets of the dairy industry.

“I am encouraged by the number of youth showing interest in agricultural careers,” Nancy says. “Farmers are getting older, but with the education and the skills of today’s young people, I am positive that agriculture will remain a strong industry in this country.”

Learn more: OldMcdonaldHasAFarm.com

Jessica Ziehm is the Executive Director of the New York Animal Agriculture Coalition (NYAAC), a farmer-led organization that supports New York’s dairy industry. A lifelong advocate for agriculture, Jessica is a proponent of open dialogue to build relationships with consumers and enhance their understanding of and appreciation for animal agriculture and modern farm

JESSICA ZIEHM Buskirk, N.Y.

practices.

“By encouraging conversations to take place, my hope is that we can bridge the gap between farmer and consumer, gaining not only an understanding of one another, but establishing a sense of trust and respect for on-farm production techniques, including animal well-being, environmental stewardship, food safety and nutrition,” Jessica says.

“As farmers, we can become more transparent with our ideals, making us ultimately more accessible and accountable to consumers so that they can receive information about their food straight from the source.”

One of Jessica’s first projects with NYAAC is still one of her most notable achievements: the coordination of the Dairy Cow Birthing Center at the New York State Fair, developed in cooperation with the Cornell Veterinary School. The exhibit debuted four years ago and showcases 36 calf births during the fair. More than 250,000 people visit the exhibit each year, learning about the dairy industry directly from roughly 300 dairy farmers and industry representatives who volunteer their time at the exhibit.

Learn more: NYAnimalAg.org FALL 2016

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A PARTNER TO YOUR BUSINESS Dairy farmer Bill Peck, of Welcome Stock Farm, LLC, in Schuylerville, N.Y., with his Farm Credit East relationship manager Bob Wiederhold and accounting specialist Anne Mitchell

Welcome Stock Farm, LLC, is an 880-cow dairy in Schuylerville, N.Y., managed by brothers Bill and Neil Peck. The Pecks operate on 1,109 acres and rent an additional 1,170 acres of

jump right in to assist with developing an effective estate plan.

Financial services, such as payroll and records, also free up

cropland. The farm has been recognized worldwide for its genetics

the brothers’ time to focus on the farm’s management. At one

program, including their father William who received the National

time, Bill would complete the farm’s payroll himself, but as he was

Dairy Shrine Distinguished Cattle Breeder Award at the World

becoming increasingly short on time, and wanted to focus more

Dairy Expo. Over the years, they have produced a number of the

on enhancing the farm’s genetics program, he turned to Farm

world’s top 100 TPI bulls and have many promising young sires in

Credit East. “For the amount of time it was taking me to do payroll

the testing stages at bull studs today.

and file tax withholdings, it’s been an outstanding decision,” he

As Welcome Stock Farm has continued to grow and evolve, Farm Credit East has been its trusted partner for lending and a number of financial services. This relationship has proved very effective for the business.

“It’s helpful to have my lending and financial services in one

said.

Through the relationship developed over the years, the Pecks know they can rely on Farm Credit East no matter what lies ahead.

“Farm Credit East’s only sector is agriculture. That expertise is very beneficial because they understand and follow the trends

place,” said Bill. “I want them to see my full financial picture, so

— whether up or down,” said Bill. “They understand when things

that when I have questions or want to go in a certain direction,

are tight and keep borrowers informed so they can make better

they already understand my business, and together we can review

decisions moving forward. Their assistance has helped those of us

the financials to make a prompt and wise decision. That’s been a

in ag businesses to be better equipped for long-term success.

real benefit.”

This understanding proved especially beneficial several years ago, as their father transitioned from the farm’s daily management.

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Farm Credit East’s familiarity with the operation enabled them to

FINANCIAL PARTNER

“When there are bad fiscal times in the business, I tell folks I have a partner behind me — that partner is Farm Credit East.”

Whether small or large, Farm Credit East offers the financial products and services to support your business success.

Our staff are equipped with a wide range of experience and understand the intricacies of agriculture, commercial fishing and forest products businesses.

Learn more about the credit and financial services available for your business at: FarmCreditEast.com/products-and-services.

Financing and supporting agriculture

SERVICES USED: PAYROLL

isn’t just something we do — it’s all we do.

RECORDS

LOANS & LEASES

BUSINESS CONSULTING

BEGINNING FARMER PROGRAMS

SUCCESSION PLANNING LENDING TAX PLANNING AND PREPARATION

PAYROLL SERVICES TAX PLANNING TAX PREPARATION PROFITABILITY CONSULTING ESTATE PLANNING APPRAISALS GRANT WRITING FINANCIAL RECORD-KEEPING FINANCIAL BENCHMARKING COUNTRY LIVING LOANS CROP INSURANCE

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A MILESTONE YEAR President Eisenhower presents Grand Champion 4-H & Open Class Steer award to Fred Scoralick of Dutchess County, N.Y. (1953)

WITH MUCH TALK OF FARM CREDIT’S CENTENNIAL OVER THE PAST YEAR, WE’D BE REMISS NOT TO RECOGNIZE SOME OF THE FARMS, ORGANIZATIONS AND INSTITUTIONS THAT ARE ALSO CELEBRATING IMPORTANT MILESTONES IN 2016 AND HAVE CONTRIBUTED TO FARM CREDIT’S LONG-STANDING HISTORY.

Eastern States Exposition A Century of Greatness In 1916, Joshua L. Brooks saw that farming in New England was on the decline and that production costs were soaring. So, working with 12 community leaders, he spearheaded the purchase of 175 acres of former swampland in West Springfield, Mass. On this land he hoped to develop an Exposition that would provide demonstrations of new farming methods, establish competitive awards to inspire farmers and their children to produce more efficiently, and support cooperative purchasing to lower farmers’ costs. Above all, Brooks believed in developing and showcasing New England’s agriculture.

The first event held on the Exposition Grounds was the National Dairy Show. In the fall of 1917, the first Eastern States Exposition was opened to the public with 138,000 people attending. As The Big E, as it’s now known, closed out its 100th year this fall, it had welcomed more than 1.4 million people over the 17-day fair. Farm Credit East salutes the work of the Eastern States Exposition over the past century, showcasing Northeast agriculture and developing young agricultural leaders.

LEARN MORE: EASTERNSTATESEXPOSITION.COM 14

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The Big E today

Lyman Orchards, of Middlefield, Conn., Celebrates 275 years

In 1741, John Lyman and his wife Hope purchased a 37-acre parcel of land in what is now Middlefield, Conn. Ten generations later, the family operates

Highland Farms, Inc., of Cornish, Maine was honored for their long term relationship with Farm Credit East at the Auburn office’s centennial event held in July at The Lucerne Inn in Dedham, Maine. Pictured here are two of the farm’s members, Allaire Palmer and Libby Bleakney, with Farm Credit East CEO Bill Lipinski and Auburn branch office manager Matt Senter.

a multi-dimensional business on more than 1,100 acres of scenic farmland.

Well known for its apples, pies and epic corn maze, Lyman Orchards is a popular destination for New England families. The Lyman family continues to operate the farm with the same mission its ancestors had set forth: a commitment to preserve the land for future generations. Farm Credit East salutes the hard-working Northeast farm families, such as the Lymans.

Congratulations on 275 years!

LEARN MORE: LYMANORCHARDS.COM

SUNY Cobleskill: A Century of Innovation

As Farm Credit East closes out its centennial year, we’d like to recognize the farm businesses that have done business with us for more than 80 years. Honorees began working with Farm Credit prior to the year 1936 and are located within the states currently served by Farm Credit East.

WE THANK EACH OF THESE FARM FAMILIES FOR THEIR COMMITMENT TO AGRICULTURE AND LONG-TERM RELATIONSHIP WITH FARM CREDIT.

Chartered in 1911, the Schoharie State School of Agriculture opened in 1916 with one building, five faculty members and eight students. Today, SUNY Cobleskill has grown to include 902 acres, educational facilities, a contiguous farm, a new equestrian center, a 200-cow dairy facility and a 40,000 gallon cold-water fish hatchery. The School of Agriculture and Natural Resources and The School of Business and Liberal Arts & Sciences offers 52 associate and baccalaureate degree programs to more than 2,500 students.

Thank you for cultivating past, present and future generations of Northeast agriculture for 100 years and counting!

LEARN MORE: COBLESKILL.EDU

Albert Fitzpatrick Farm Bell Brothers, Inc. Blackstone Farms Blue Slope Farm, Inc. Brookdale Fruit Farm Buck Farms Cooper’s Hilltop Farm The Donaldson Family Edwin Pelletier and Sons, Inc. Gill Corn Farms, Inc. Hemphill Farms, Inc. Highland Farms, Inc. John Lombardi, Jr. Jones Family Farms Labrie Farms Landeen Farms Macera Farms Nightingale Farms Saunderskill Farms Schools Farms Steere Orchard Thibeau Farms, LLC Three Oak Farms White Farms Willowbrook Farm Wright Farms

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$

FUNDING

FOR AGRICULTURE Successful business owners have one thing in common: they

These are factors that funding entities will consider when

are never stagnant. They are always looking for ways to grow or

evaluating your application, Nathan explained. You must also

to operate more efficiently. Staying on the cutting edge requires

prove that your project is likely to succeed and you should

investing scarce capital. Grants can be a great resource to raise

consider the infrastructure, capital and resource challenges you

the capital needed to take on larger projects; unfortunately they’re

will face.

often under-utilized.

Farm Credit East recently sat down with our grant writing expert Nathan Rudgers to learn more about some of the barriers

VALUE-ADDED PRODUCER GRANTS (VAPG) help producers

producers face when applying for grants and how Farm Credit East

take the raw material they’re already growing or raising and

can help alleviate the process.

through processing and/or marketing, create a value-added

“Applying for grants and other incentives can be time consuming and there are piles of paperwork involved. And

product.

ECONOMIC DEVELOPMENT GRANT FUNDING can be used

that’s just to apply, so at the end of the day, your hard work isn’t

for projects and programs that create and/or retain jobs, improve

guaranteed to pay off,” explained Nathan.

the local and/or regional tax base, or otherwise enhance the

IDENTIFY YOUR NEEDS AND OBJECTIVE

community’s quality of life. Examples include, Rural Economic

“From our years of ag development experience, we find that both public and private sector entities are very interested

Development Grants (REDG) and New York’s Consolidated Funding Application.

ENERGY-RELATED GRANTS offer funding to complete energy

in supporting agriculture and helping the industry grow and

audits, provide renewable energy development assistance, make

change,” said Nathan. “But public entities have specific objectives

energy efficiency improvements and install renewable energy

they’re trying to achieve, so it’s important that your project meets

systems. Examples include, AFRI Sustainable Bioenergy and

a public interest to be successful.”

Bioproducts, Biomass Crop Assistance Program and the Rural

When getting started, Nathan sits down with his clients to evaluate their projects by asking questions like: • Is your project going to create more jobs for workers in your area?

• What positive effects will your efforts have on the environment?

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TYPES OF GRANTS

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Energy for America Program (REAP).

SPECIAL STATE PROGRAMS offer funding similar to those listed above, but at a local level. Examples include, the Agricultural Environmental Enhancement Program (AEEP), the New York Farm Viability Institute’s farm viability grants, Massachusetts Matching Enterprise Grants for Agriculture (MEGA), the Dairy Acceleration Program and National Grid Incentives, among others.

Steve and Julie Rayder

GRANT IMPACT The money you’re eligible for varies from grant to grant, and project to project. If your project creates jobs, you may be eligible for up to $15,000 per worker. Larger projects with a focus on renewable energy could net up to $500,000, or 25 percent of the projected cost.

HOW FARM CREDIT EAST CAN HELP Farm Credit East offers grant writing services to help farms and agribusinesses grow, change or expand their enterprises. We work with producers to identify grant opportunities and navigate the application process.

“We have written a multitude of grants so we have a strong understanding of program requirements, and also know where

GRANT FUNDING

IN ACTION Lakewood Products Inc., a 10+ MMBF sawmill in

to look to find additional funds,” said Nathan. “Matching the

Williamstown, Oswego County, N.Y., owned by Steve and

appropriate program to a producer’s activity or investment is a key

Julie Rayder, had been operating its mill with a diesel fired

part of the equation that we do well.”

generator, as three-phase power was not available near

After determining a grant’s applicability to a producer’s objectives, Farm Credit East works with the producer to tell the

the site.

The initial quote to extend service to their mill was

story of what their farm or agribusiness is trying to achieve,

much greater than the Rayder’s could justify, but generator

ensuring the objectives and requirements of the application are

operating costs were eating up their profits, and the lack

met. Farm Credit East also prepares a feasibility study if need be.

of back-up generation was a risk. That’s when they reached

“Our goal is to position our clients to succeed,” affirmed Nathan.

out to Farm Credit East’s grant expert Nathan Rudgers.

Nathan was able to negotiate a lower cash cost of the three phase extension, plus a letter of credit that reduces by 20 percent each year for a five-year term. (A letter of credit provides assurance to the utility that their costs will be recouped by the sale of electricity over a set period. Its cash cost to our customer is minimal, one percent of the face value each year.)

Additionally, Nathan was able to secure $100,000 in National Grid grant funds to offset the cost of the threephase service.

“Nathan brought the grant to our attention and did

Lakewood Products Inc., Williamstown, Oswego County, N.Y.

all the paperwork and footwork to make it happen,” said Julie. “Since he was familiar with the process, he thought of things we didn’t. He was with us from start to finish, answering questions and providing guidance.”

GRANT AVAILABILITY

But that process wasn’t always easy. “It’s involved, and you really have no idea what you’re dealing with until it happens,” Julie continued. “You need to persevere, but in

Farm Credit East recently compiled a listing of grants and other incentives available in the Northeast states of Conn., Maine, Mass., NH, NJ, NY and RI. The list includes grant programs, tax incentives and some loan programs that are available to agricultural producers and other entities involved in agriculture or related industries.

the end, it’s worth it.”

As of this past June, Lakewood is operating on threephase power, only using the generator for back-up in the event of a power outage. The mill is running smoother and they now have the ability to grow. With the help of Farm Credit East, a project that had been financially out of reach, but critical to Lakewood’s continued profitable operation,

LEARN MORE: FARMCREDITEAST.COM/GRANTS

became manageable.

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WASHINGTON Update

HHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHH

Tom Cosgrove Senior Vice President for Public Affairs

Race to the Finish Line

HHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHH

Tracking New Regulations in the Midnight Period The arrival of this Financial Partner

Because of Congressional opposition

required to overturn or change an existing

to your mailbox means we know who

to many of President Obama’s legislative

regulation. Opponents can also turn to the

the next President is going to be and that

proposals, especially in his second

courts to fight regulations. For example,

there are about 60 days left for the Obama

term, he pursued many policy changes

the Waters of the United States (WOTUS)

Administration.

through regulatory action. The President’s

regulation is final, but is not being

The Federal Register will remain a

regulatory agenda was overly aggressive

enforced because of a legal challenge and

“must-read” until January 20, 2017 as the

according to many of his Congressional

subsequent appeals court ruling.

Obama Administration tries to finalize a

critics, but Congress has limited ability to

number of regulations. This last minute

influence regulations once they become

being pushed through at the end of

push to finalize regulations, however, is

final. The Congressional Review Act

an administration may represent new

not unique to the current Administration.

(CRA), passed in 1996, was supposed

initiatives, many are simply updates to

to give Congress a stronger say in

existing rules that have been mired in the

Washington University’s Regulatory

rulemaking, but since its enactment, only

regulatory process. Many of the executive

Studies Center, called “The Final

one regulation has been overturned using

agencies are hoping to finalize rules in the

Countdown: Projecting Midnight

CRA authority.

waning days of the Administration because

A July 2016 study by George

Regulations,” quantified the regulatory

rules that don’t get completed by January

activity of the last three administrations’

passed bills this Congress intended to

20 will have to wait until new executive

final months, which the study dubbed,

assert greater control over executive

agency leadership is in place, regardless of

the “Midnight Period.” All three

branch rulemaking. The Regulatory

which party wins the White House.

administrations (Bush, Clinton and Bush)

Accountability Act would impose

showed an increase in regulatory activity

new requirements and limitations on

significant regulations that have been

during the Midnight Period and the

the federal rulemaking process. The

proposed or finalized this year, and will

report predicted the same for the Obama

Regulations from the Executive In Need of

continue to keep a close eye through

Administration.

Scrutiny Act, or REINS Act, would require

the Midnight Period. Note that these

Many in the agriculture and business

We have been tracking a number of

explicit approval of Congress for any major

regulations come from different agencies,

community are concerned by this

regulation to take effect. Although both

but all could have an impact on Farm

prospect, as they view many regulations

bills have passed the House, neither has

Credit East members.

currently being proposed as anti-business

passed the Senate.

and are not eager to see more rules put

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The House of Representatives has

While some of the regulations

Once regulations are final, subsequent

forward in the Administration’s

administrations cannot easily undo them,

final months.

as a new rulemaking process would be

FINANCIAL PARTNER

H H H

H

H

MIDNIGHT PERIOD H _ R EG U L AT I O N S _

★★Department

of Labor – Defining and Delimiting the Exemptions for Executive, Administrative, Professional, Outside Sales and Computer Employees (the overtime rule).

Status: Final rule – published May

23, 2016; effective, December 1, 2016.

This rule revises the definition of employees that are exempt from overtime, including increasing the salary threshold

health care and living conditions. The

interests in corporations and partnership

proposed rules could affect both organic

for estate, gift and generation-skipping

dairy and egg producers.

transfer tax purposes, in order to limit

★★Department

of Justice – Standards and Procedures for the Enforcement of the Immigration and Nationality Act. Status: Proposed rule – comment

period closed.

This proposed rule revises regulations

from $23,660 to $47,892. Note that there

concerning unfair immigration-related

are still federal exemptions for agricultural

employment practices, including how

workers. Farm Credit East held a webinar

employment practices are investigated

on this topic in June. A recording is

and enforced. This rule could subject

available at farmcrediteast.com/webinars.

employers who hire immigrant workers to

★★USDA

– National Organic Program; Organic Livestock and Poultry Practices.

new penalties.

This rule amends a number of current organic livestock and poultry production

Status: Proposed rule – comment

period closed.

The proposed rule could impact the estate planning for high value farm businesses.

In many cases, Farm Credit East will submit or has submitted comments on proposed regulations or will join forces to submit comments with groups that hold similar views, such as the American Farm Bureau Federation, the National Council of Farmer Cooperatives or the National Council of Agricultural Employers.

So the big question is what other

of the Treasury, Internal Revenue Service – Estate Gift and Generation-Skipping Transfer Taxes; Restrictions on Liquidation of an Interest.

Status: Proposed rule – comment

discounts in valuations of these interests.

★★Department

new regulations may be coming in the next few months? The truth is, we don’t know. That’s why, in addition to following the transition plans of the next Administration, it will be important

requirements, adding new provisions

period closed; public hearing

to keep track of any new regulations

for livestock handling and transport

scheduled for December 1, 2016.

published in the Federal Register during

for slaughter, and clarifying certain requirements for livestock and avian

This proposed rule would make a

the Midnight Period.

number of changes to the valuation of

Henry Huntington, Farm Credit East board member and CEO of Pleasant View Gardens, Inc., in Loudon, N.H., pictured at a recent meeting with New Hampshire Congresswoman Ann McLane Kuster. Congresswoman Kuster is a member of the Agricultural Committee and was one of the many Northeast cosponsors to sign on to H. Res 591, commending the Farm Credit System and its cooperative owners on its centennial.

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FINANCIAL PARTNER is for the customers, employees and friends of Farm Credit East. Farm Credit East is a farmer-owned lending cooperative serving the farm, commercial fishing and forest products businesses in Maine, New Hampshire, Massachusetts, Connecticut, Rhode Island, New York and New Jersey. Part of the national Farm Credit System, Farm Credit East is a fullservice 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: Kristie Schmitt, Editor, Farm Credit East, 240 South Road, Enfield, CT 06082-4451. CALL: 860.741.4380.

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

Copyright © 2016 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.

FarmStart® Continues to Invest in the Future of Northeast Agriculture NEW YORK DAIRY FARMER RECEIVES THE PROGRAM’S 175TH INVESTMENT William Vincent, owner of Brookby Dairy LLC in Dover Plains, N.Y., comes from a sixth generation family farm, and after graduating from college returned home to take over the farm which had been inactive for close to 30 years. Two years into running the farm, Will had the opportunity to expand on 750-acres of leased land, but didn’t have the necessary capital.

“Since I’m just getting started, it was hard to find a lender that believed in me enough to invest in my new business,” said Will.

“FarmStart provided the capital I needed to get my feet on the ground and is enabling me to expand and diversify the farm. And my FarmStart advisor is beneficial in helping me to understand what I need to keep track of accounting-wise.”

“We initiated this unique program ten years ago to give new entrants into agriculture a healthy start,” said Lynn Weaver, FarmStart program manager. “With each FarmStart application, it’s inspiring to view the fresh ideas and passion of these new producers. I look forward to the future of Northeast agriculture, commercial fishing and forest products.”

FarmStart invests up to $75,000 in working capital to help beginning Northeast farm businesses and cooperatives become operational.

A FarmStart advisor works with participants to help the new businesses stay on track in achieving their business objectives.

For more information: FarmCreditEast.com/FarmStart

FarmStart advisor John Kelder with William Vincent, owner of Brookby Dairy, LLC in Dover Plains, N.Y.