2016 Summer FCW Newsletter

spotlight Summer 2016

CENTENNIAL EDITION

2016 DIRECTOR & NOMINATING COMMITTEE ELECTIONS Page 4

FARM CREDIT WEST PAYS $67 MILLION IN PATRONAGE Page 9 FRESH PERSPECTIVES: CONGRATULATIONS TO VALLEY SMALL BUSINESS DEVELOPMENT CORPORATION Page 5

President Woodrow Wilson signed the Federal Farm Loan Act July 17, 1916; this was the beginning of the Farm Credit System.

spotlight WHO WE ARE

TA B L E O F C O N T E N T S

One of the West’s leading agricultural lenders, Farm Credit West and it’s wholly owned subsidiaries are cooperatively-owned lending institutions providing financial services to farmers, ranchers, and agribusinesses with offices located in Arizona, California’s Central Coast, Imperial Valley, Southern San Joaquin Valley and Sacramento Valley.

President’s Message. . .................................... 3

SPOTLIGHT is produced for the customers, employees and friends of Farm Credit West. Comments and story ideas can be submitted to the Marketing Department, Farm Credit West, 1478 Stone Point Drive, Suite 450, Roseville, CA 95661.

Director & Nominating Committee Elections..... 4 Congratulations to Valley Small Business Development Corporation................................. 5 American Agriculture and the Farm Credit System Prologue........................... 6 2015 Patronage Payment................................. 9 Community Center................................... 10-11 • Western Region Dairy Challenge • Discussion Meet • Farm Smart

BOARD OF DIRECTORS

• Young Farmer and Rancher Exectutive Institute

Joey Airoso, Chairman of the Board......................................Pixley, CA

• Ag Career Expo

Sureena B. Thiara, Vice Chairman of the Board......... Yuba City, CA

The Legacy and Future.............................. 12–13

Robert Amarel, Jr........................................................ Yuba City, CA

Scholarship Winners..................................... 14

Alben F. Barkley............................................................. Oxnard, CA Gregory O. (Butch) Dias, Jr............................................. Visalia, CA J. Dick Eastman...............................................................Powell, WY

Calendar Photo Contest............................... 15 50 Year-Old Time Capsule Opened................ 17 Tech Watch: Ransomware............................ 18 Territory and Office Locations........................19

Catherine Fanucchi....................................................Bakersfield, CA Douglas C. Filipponi...................................................... Creston, CA

Mission Statement

Adam B. Firestone......................................................... Buellton, CA Craig C. Gnos....................................................................Davis, CA

Farm Credit West will ensure THE CUSTOMER

John O. Grizzle........................................................... El Centro, CA

COMES FIRST by providing superior service

Robert N. Hansen......................................................... Hanford, CA Blake Harlan.............................................................. Woodland, CA Colin Mellon......................................................................Yuma, AZ Barry Powell............................................................. Sacramento, CA

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at competitive rates, in a timely, professional and ethical manner.

Summer 2016

PRESIDENT’S MESSAGE Mark Littlefield, CEO

Celebrating our Centennial This year marks the 100 year anniversary of the Farm Credit System. Over the last century, through prosperous and challenging times, Farm Credit associations like Farm Credit West have supported agriculture and rural communities by providing a reliable source of financing.

Agriculture has changed over the last 100 years; from horses to tractors and from handwritten letters to mobile apps. Farm Credit West has adapted to meet the ever-changing needs of our customers to remain a reliable source of funding so that we can continue to deliver on our mission that the CUSTOMER COMES FIRST. As we celebrate 100 years of service, we want to thank you, our customers, for believing in what we do and why we do it.

To understand our vision for the future it is important to look back on how our first 100 years shaped and strengthened our foundation.

Farm Credit System History On July 17, 1916, President Woodrow Wilson signed the Federal Farm Loan Act, marking the beginning of the Farm Credit System.

The establishment of the Farm Credit System was the culmination of a decades-long struggle for reliable, affordable agricultural credit.

After World War I, agriculture entered into a period of decline and reliable financing was largely unavailable to farmers. Things went from bad to worse with the Great Depression as thousands of farmers went into foreclosure and virtually shut down the Farm Credit System’s ability to finance agriculture. In the late 1920s and early 1930s major agricultural laws were enacted that reorganized the Farm Credit System and formed the basis as it exists today.

During World War II as our nation pulled out of the Great Depression and American agriculture worked to feed a nation at war; our customers discovered the benefits of doing business with a financing cooperative that cared about their success. In the 1950s and 1960s technology transformed agriculture and marked a major period of growth in the Farm Credit System.

During the agricultural recession of the 1980s we saw declining property values and shrinking profits. During this extended farm crisis the Agricultural Credit Act of 1987 was enacted and provided federal financial assistance to the Farm Credit System. By the end of 2005 the Farm Credit System had repaid all of the financial assistance they had received.

As the agricultural economy recovered, Farm Credit thrived.

The system currently operates at capital levels well ahead of commercial bank levels in the agricultural sector. In recent decades, Farm Credit has focused its efforts on providing financing to young, beginning, small, minority and migrant farmers. Today, a stronger, more capable Farm Credit System continues to strengthen U.S. agriculture and rural communities by ensuring they have the capital they need to be successful.

Farm Credit West History As a business with 100 years of service to the agricultural community, we feel a deep connection with you, our customers, and a passion for your livelihood. We have become a stronger institution that cherishes the rich history that has shaped us into who we are today.

Farm Credit West’s lineage started in April 1917 with the East Side Paso Robles, NFLA. Today, Farm Credit West serves farmers and ranchers across three states with increasing diversity in commodities, operation size, age, farming experience, cultures and language preferences. Through the years and many mergers we have not wavered in our commitment that the CUSTOMER COMES FIRST which is based on 100 years of superior customer service.

What our history means for you, our customer owners Farm Credit West, now entering our second century, continues to be recognized as a strong, reliable and trusted institution.

We are proud to have built an organization whose financial position and performance is strong enough to grow and prosper, even during challenging economic times.

Over this past year we have succeeded in fulfilling our value proposition to you; by providing competitive rates, superior service and a robust return on patronage. In 2015, Farm Credit West’s net income was $169 million and our earning assets grew by $1.9 billion or 27% to a total of $9.1 billion at year end.

Additionally, in December of 2015 the Farm Credit West board declared its largest patronage distribution ever of $67 million.

As we look back on the past and prepare to celebrate 100 years of serving agriculture, we want to take this opportunity to say thank you to you, our customer owners. Without your support generation after generation, we would not be where we are today.

Thank you and we look forward to continuing to serve future generations of farmers and ranchers and in supporting the rural communities you rely on.

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spotlight 2016 Director and Nominating Committee Elections The strength and long-term success of Farm Credit West depends on continued sound leadership, vision and direction by the Farm Credit West Board of Directors. This is possible only with a Board composed of industry and community leaders who are committed to the long-term success of agriculture and Farm Credit West.

The election package for Board and 2016 Nominating Committee candidates will be mailed on May 18 to all eligible voting stockholders. Complete biographical information for the Board of Director Candidates will be included in the election package.

Board of Director Candidates Videos In order to provide our customers with the opportunity to learn more about the Board of Director candidates for 2016, individual videos in which the candidates provide information about themselves and their qualifications will be posted on our website at FarmCreditWest.com/LearnMoreAboutUs/DirectorElections starting May 19.

Nominating Committee Candidates The role of the Nominating Committee is an integral part of this success. This group of customers is elected by the voting stockholders to serve a term of one year. Their responsibilities include screening, interviewing and selecting director candidates to appear on the ballot in each director election. Eligibility to serve on a nominating committee is limited to voting stockholders, who are not directors, director candidates, officers, employees or agents of the association.

The following individuals are candidates for the Farm Credit West 2016-2017 Nominating Committee:

Board of Director Candidates: Position 1 — Coastal Region

Thomas D. Deardorff, II Santa Barbara, CA

Brian Talley Arroyo Grande, CA

Position 2 — Southern San Joaquin Valley

Michael Frey Bakersfield, CA

Robert (Bob) Hansen Hanford, CA

Position 3 — Sacramento Valley Region

Sureena S. B. Thiara Yuba City, CA

Anthony J. Van Ruiten Robbins, CA

Position 4 — Southwest Region

Coastal Region: Nicholas Miller, Jeffery Yong, Dana Merrill, Mike Richardson Sacramento Valley Region: Robert L. (Roy) Gill, Sam Nevis, Matt Mariani, Paul Squires Southern San Joaquin Region: Louis Pandol, Julien Parsons, Michael Dias, William Tos, Jr. Southwest Region: Bill Plourd, Doug Westmoreland, Mike Blohm, Mark McBroom

Toni F. Holtz Imperial, CA

Position 5 — Southwest Region

Mark A. Cook Willcox, AZ

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Colin Mellon Yuma, AZ

Gary Mayfield Buckeye, AZ

Summer 2016

Fresh Perspectives: Congratulations to Valley Small Business Development Corporation As part of the 100 year anniversary celebration, the Farm Credit System searched for the top 100 visionaries who are positively shaping the future of rural communities and agriculture. 100 Fresh Perspectives Honorees were selected by our national panel from nearly 1,100 entries. These individuals, partners, teams and groups are working to strengthen the future of agriculture and America’s rural communities. To see all of the Farm Credit 100 Fresh Perspective Honorees please go to www.farmcredit100.com We would like to congratulate Valley Small Business Development Corporation as one of the top Farm Credit 100 Fresh Perspective Winners.

Valley Small Business Development Corporation (Valley) delivers mobile financial literacy education to underserved rural communities and socially disadvantaged farm populations in five California counties.

A collaboration between four Farm Credit organizations serving Kings, Kern, Tulare, Fresno and Madera counties, the initial funding secured and retrofitted a van for mobile delivery of services, and supported the hiring of skilled staff to teach the targeted communities and connect them to service providers that can support their goals.

“Start-up businesses and beginning farmers all struggle with financial literacy, accounting and regulatory issues. Valley acts as the connector of services to those seeking direction and assistance,” says the organization’s president and CEO Debbie Raven, who has worked in agricultural lending for 40 years. “We do so by delivering these products and services to their doorstep through the use of the mobile office. The end result is economic development of rural businesses and small farms, ultimately providing sustainability for these individual’s families and communities.”

Valley primarily targets the next generation of agriculture producers. This includes children being groomed to take over their family operation, first generation immigrants with the dream of owning their own farms, and college educated students interested in entering the field. While energetic and committed, these fledgling producers are often unaware of the products and services available to assist them. They might not understand the dynamics of accessing the capital they’ll need to succeed or haven’t found the financial backing to enter the agricultural industry.

Debbie Raven, President and CEO of Valley Small Business Development Corporation

Valley is the hub of an extensive network of service providers, lenders and governmental resources that focus on the needs of young and beginning farmers and ranchers. The collaboration between Farm Credit West, Fresno Madera Farm Credit, Golden State Farm Credit and CoBank is working to bridge these gaps and bring education, opportunities and business connections directly to these producers to help them succeed.

Category Agriculture Education and Community Impact

Location Selma, California

Farm Credit Affiliation Farm Credit West, Fresno Madera Farm Credit, Golden State Farm Credit and CoBank

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spotlight Farm Credit 100: American Agriculture and the Farm Credit System Prologue

By James N. Putnam II “History is not merely something to be read. And it does not refer merely, or even principally, to the past. On the contrary, the great force of history comes from the fact that we carry it within us, are unconsciously controlled by it in many ways, and history is literally present in all that we do.” – James Baldwin, American writer and activist

and wealth out of rural America, even as the cities lured young adults from rural America to greater economic opportunity. New technology such as telephones, health care advances, trolley car networks, automobiles, household electricity and various consumer goods were much more accessible to urban America than out in the country.

“…farmers through most of history have been subject to the rule of agencies outside their villages, usually urban authorities such as kings, armies, tax collectors, banks and markets.” (Agriculture in World History, Mark B. Tauger, 2011. Page 13)

There was great concern that American agriculture was falling behind and would eventually be unable to feed urban America.

President Theodore Roosevelt (1901-09) and President William Howard Taft (1909-13) spoke out about this. President Woodrow Wilson (1913-21) signed the Smith-Lever Act creating the Cooperative Extension Service in 1914 to expedite the transfer of practical scientific knowledge to America’s farmers. Many thought that European farmers were rapidly adapting new farming technologies, leaving American farmers behind in the drive for efficiency and reliable food supply. (This was mostly unproven and may have been more about “the grass being greener” on the other side of the Atlantic.)

Today we take it for granted that American farmers produce an abundance of inexpensive food, fiber and plant materials. Farming is accomplished efficiently with cutting edge technology and management practices. While crop harvests fluctuate year to year due to weather and other factors, famine is never an issue. The average American family spends less than 13 percent of their budget on food, and only 16 percent of that (2.1% net) is the actual gross return to farmers. (http://www.bls.gov/news.release/pdf/cesan.pdf and http://www.ers.usda.gov/data-products/food-dollar-series.aspx) Indeed, from 1920 onward, American agriculture has more often struggled with overproduction, commodity surpluses, low farm prices and an ever-rising standard for farm profitability. This has forced a continued drive for increased productivity and efficiency that greatly benefited nonfarm America, even while it had deep sociological and business consequences for rural America. After 1933, Federal farm policy focused on controlling/reducing U.S. farm output through most of the rest of the 20th Century.

It would be wrong not to recognize that access to food continues to be a critical issue in our time. Witness the critical importance of the SNAP (“Food Stamps”) program and the challenge of proper nutrition among America’s lowest income population. Access to affordable, nutritious food continues to be a critical global issue as population grows towards 9 billion by 2050. However, these are societal and political issues, and not farm productivity issues.

It was far different in early 20th Century America. Since the founding of the American colonies, farming had been the leading occupation. Nonfarmers and cities had always been the minority.

This was shifting rapidly after the Civil War, and farmers knew it.

They could see that America’s cities, manufacturing, commercial enterprises and burgeoning rail network were growing much faster than the farm sector. Farmers resented that they were rapidly losing political power. They deeply suspected that the nonfarm sector, especially the railroads, trusts and city banks were sucking income

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With the 20/20 hindsight that history affords us, we now know that these fears did not materialize. From the time of World War I to the present, American farm productivity has trended steadily ahead. Increased farm productivity was enabled by a stream of new equipment, materials and knowledge from American industry and its Land Grant universities. Above all, it was accomplished by the ingenuity, adaptability, growing management sophistication and always hard work of America’s farm families. The accomplishments of American agriculture during the past century are eminently worthy of celebration.

There was one more necessary factor in fueling the American revolution in farm productivity: access to capital in good times and in bad times at affordable interest rates. The Farm Loan Act (FLA) of 1916 launched the building of a nationwide lending system that would channel capital from urban money markets to America’s farmers.

The FLA’s visionaries envisioned that this new financial cooperative would eventually be owned by its farmer-borrowers.

No longer would farm lending be at the whim of city bankers.

Cost of debt capital would be equalized between city and country, and cooperative banking profits would be reinvested as capital or returned to farmer-borrowers as dividends. Debt capital would be available to the farm/rural community all of the time, regardless of circumstances such as recessions or low prices for farm products.

This was the birth of the Farm Credit System on July 17, 1916.

The 67 million dollar question

What will you do with your check?

We’re paying $67 million in cash dividends to our members for 2015, bringing our total to more than $482 million since 2002.

www.farmcreditwest.com 800.909.5050

Committed.

Experienced.

Trusted.

spotlight The Farm Credit BioStar is a symbol of

progress & commitment The BioStar consists of five visual elements — three leaves, a root system, and a star. The leaves represent the three types of lending provided by the Farm Credit System: long-term real estate, short-term operating, and cooperative financing. The roots stand for our customer-owners and the star signifies light and direction. The prefix “Bio” describes life, while the suffix “Star” captures the strong energetic shape within the symbol.

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Summer 2016

Sharing in the Success of Farm Credit West As a customer-owner of this thriving financial cooperative, you enjoy the opportunity to share in the successes of the organization through patronage distributions. Farm Credit West distributed a record $67 million in cash dividends for 2015, bringing our total to more than $429 million paid since we began the program in 2002.

February 2016 Pay To The Farm Credit West Customers $67,000,000.00 Order Of Sixty-Seven Million Dollars and 00/100 Date

For

2015 Patronage

Signed

FCW Board of Directors

Farm Credit West’s success in 2015 reflects the strength and resourcefulness of agriculture.

While many of our customers were impacted by the severe drought in California and lower prices in some key commodities produced, their management and financial strength has helped them continue supplying food to a growing population. Farm Credit West is proud to serve agriculture today as it has for the last 100 years.

– Mark Littlefield

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spotlight Community Center Western Region Dairy Challenge The 2016 Western Regional Dairy Challenge was held in Tulare, CA, where eight schools from the U.S. and one school from Canada competed. The dairy challenge is a contest where college students with a dairy or agriculture major compete on teams of four to analyze every part of a specific dairy operation looking for strengths, weaknesses, inefficiencies and areas of opportunity.

Many students who participate have grown up in the dairy industry and most plan on pursuing careers in this field upon graduation.

This contest prepares them for those careers by giving them exposure to a “real world – like” situation where they are given the task to analyze an actual dairy business and find ways to improve upon that business’s current practices. To educate these future leaders about financial strength, Farm Credit West employees David Hill from the Hanford branch and Landon Fernandes from the Tulare branch presented Understanding Balance Sheets and Income & Expense Statements. Since the contest focuses on the whole picture, including finance, students have the opportunity to take the knowledge they have learned in the classroom and apply it hands on.

FARM SMART Farm Credit, has been a longtime supporter of the FARM SMART program located at the 255-acre University of California Desert Research & Extension Center in Imperial County. FARM SMART is a community outreach program whose mission is to educate people of all ages about natural and renewable resources, including agriculture, so they can be conserved, managed, and available for future generations.

Students are exposed to important concepts related to food, the agricultural industry and environmental sustainability. This is an outstanding and unique agriculture literacy program that teaches about the thousands of acres of production agriculture in the Imperial Valley and where our food comes from. All the FARM SMART educational programs include water topics and allow students to harvest fresh produce from a 3-acre garden.

Discussion Meet Contest Congratulations to Jace Householder, Farm Credit Services Southwest Loan Officer, for making the Sweet Sixteen at the 2016 American Farm Bureau Federation Convention.

At the 2016 American Farm Bureau Federation Convention Jace Jace Householder, Safford branch Householder competed in the Discussion Meet contest. Jace qualified for this event at the state level in Arizona. At the national level he made it past the first round and was among the top 16 individuals in the Discussion Meet.

This contest is designed to stimulate a committee meeting where discussion and active participation are expected from each participant. The competition is evaluated on the exchange of ideas and information the participants identify about the pre-determined agricultural topic. Judges look for contestants that offer constructive criticism, cooperation and communication while analyzing the agricultural topic as well as developing solutions.

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FARM SMART has welcomed over 120,000 participants since its inception in 2001, including 5000 K-12 students and 2000 adult winter visitors annually for farm tours and education on local agriculture. There are two paid staff members and dedicated volunteers that provide over 40,000 volunteer hours per year.

FARM SMART is funded by the local Ag-Industry, local businesses, and community contributions.

For more information about FARM SMART and the UC Research Center visit http://drec.ucanr.edu.

Summer 2016

Community Center Young Farmer and Rancher Executive Institute Farm Credit West recognizes the importance of preserving the future of agriculture and rural communities. As Farm Credit West looks back on its rich 100 year history, it becomes increasingly evident that preserving the future of agriculture includes making sure young farmers and ranchers have a strong financial knowledge base that will enable them to be successful, now and in the future. By providing young farmers and ranchers with educational and leadership training, we can assist the next generation of farmers and ranchers.

In February, Farm Credit West conducted its 16th annual Young Farmer and Rancher Executive Institute, which has provided useful tools to 210 graduates since its inception. Over the 3-day training, 26 young farmers, ranchers, and agricultural business individuals, came together to learn from Farm Credit West directors and staff, Cal Poly agriculture business professors and other industry leaders.

Tom Gulliver, Santa Maria branch, presents information about Farm Credit history at the Young Farmer and Rancher Institute.

I feel very lucky to have had the opportunity to participate in this unique program. Not only did I walk away with a deeper understanding of Farm Credit West’s organization, products and methods, but I also gained a greater awareness of the opportunities and challenges that we face as the next generation of farming families. – Jamie Reamer

Ag Career Expo The inaugural 2016 Ag Career Expo (A.C.E.) was put into motion to connect our future workforce with businesses in agriculture, giving students the opportunity to create a plan to reach their career goals. A.C.E. was hosted at the International Agri-Center in Tulare California, where roughly 300 students from surrounding schools in Bakersfield, Dinuba, Orosi, Porterville, Strathmore, Tulare, Visalia Brittany Black, Tulare branch and Rebecca and Woodlake attended.

During the Career Expo two different speakers talked about knowing yourself, building soft skills, and what to think about when making career development decisions. After the presentations, students had the opportunity to practice their interviewing skills with the 26 attending agricultural businesses while learning about the different career paths and colleges that are available within agriculture. Over lunch, students were able to share a meal with the attending vendors and enjoy more one-on-one interactions.

The event was a success with all returned surveys expressing an enormous appreciation for the opportunity and strong intent on attending in future years. Next year A.C.E. has set a goal to host 100 businesses and 1,000 students.

Lancaster, Roseville Admin Office, talk to students about their interests and careers in agriculture.

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spotlight The Legacy and Future Dr. David M. Kohl Professor Emeritus, Virginia Tech

When one becomes a centenarian, it is time to reflect on the past as well as assess the vision for the future. Much like the tradition of famous weatherman and Ronald McDonald character, Willard Scott, I want to recognize Farm Credit for reaching 100 years this year and becoming an official member of the “triple digit club.”

I begin the Farm Credit story with my reflections of how the System influenced my career and life. As a crew-cut, dairy farm boy from upstate New York, I remember listening to my parents and neighbors discuss loans from the past Production Credit and Federal Land Bank. Later, in graduate school at Cornell University, I supervised the Farm Credit Fellows group. From the floors of Wall Street, to breakfast at top the World Trade Center, to rubbing shoulders with executives of futures funding markets, it was all nearly overwhelming. I remember well the special day my professors announced the Morgenthau Fellowship would fund

my doctoral program. Henry Morgenthau was U.S. Secretary of Treasury under Franklin D. Roosevelt. Working with Dr. George Warren, Cornell’s Department Head of Agricultural Economics at the time, Secretary Morgenthau was instrumental in restructuring the Farm Credit System in the 1930s.

Starting out after graduate school, my life was forever changed after denial of a loan request I made to Farm Credit. I owe my sincere and special thanks to that loan officer who will retire soon, an event I do not plan to miss. Since that time, my life has been greatly enriched by the Farm Credit System including teaching, consultation, and the hiring of many of my former students from Cornell and Virginia Tech. Years later, Farm Credit now finances our dairy farm as well as the creamery business. It is true that often one’s life comes around in full circle.

Shifting gears, have you ever thought of something you wanted to ask a parent, mentor or regarded friend that is now gone?

Imagine if all the individuals from the Farm Credit System of days past could collectively share all they have seen and learned from the past 100 years, but also, their vision for the future. If that conversation were possible, I believe they may tell you about several of these highlights.

The Farm Credit System was born in the first great commodity super cycle around World War I to provide for the expanding need for agricultural credit. The life of the System, along with all of the

While financially astute, the foundation of the Farm Credit System is not based just on numbers; but on the employees who diligently serve generations of agricultural businesses.

– Dr. David M. Kohl

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Summer 2016

cooperative owners, employees and community stakeholders, has been challenged by world and regional wars, stock market crashes, economic depressions, and recessions; as well as assassinations of leaders, terrorist attacks and certainly not least, various farm crises. Of course, throughout the System life there has also been prosperity including new farming practices, equipment, technology and the emergence of global markets. Each of these events challenged the core values of the Farm Credit System and of agriculture, bringing about considerable change. Throughout each step, both agriculture and Farm Credit continue to grow and evolve ever increasing their efficiency and value.

While financially astute, the foundation of the Farm Credit System is not based just on numbers; but on the employees who diligently serve generations of agricultural businesses. Some of Farm Credit’s employees have over 50 years of service which has been and continues to be the true success of the System. From financial statements written, recorded and analyzed by hand on general ledgers, to now, computerized spreadsheets and other technologies, Farm Credit continues to adopt change in order to provide efficient credit and financial services to agriculture and rural America.

Moving forward, millennial farmers and ranchers will face new challenges as well as present a different skill set into their working culture and relationships. This younger generation

of agriculture will require sound credit and financial services, educational opportunities as well as a strong understanding of innovative practices and technology. The challenges of the next one hundred years will include a changing global marketplace, more diverse customers, employees and stakeholders, along with rapidly changing technology and finally, connection with a global population base that grows more distant from any agriculture or rural community roots.

Yes, new stewards of the Farm Credit System will rise to these challenges. They will position the System to efficiently serve the new emerging marketplace as well as traditional customers. These stewards will learn the cooperative value system that balances the heart with the head. Specifically, the stewards of the System must master a balance in engaging a family-type work culture that creates passion with the fundamental policies and procedures that have served the Farm Credit System so well.

Finally, as a centenarian and official member of the three-digit club, the Farm Credit System continues to grow its ability to better serve agriculture and rural communities.

Like the agricultural market they serve, Farm Credit is poised for change. From depressions to revolutions, the future generations of the Farm Credit System will be ready with compassionate, creative and practical solutions to whatever the future bestows!

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spotlight Congratulations to our Scholarship Winners!

Over 22 years Farm Credit West has awarded over $673,000 in scholarships to 179 students.

Farm Credit West would like to congratulate our 17 scholarship winners. Scholarships are given to youth who are devoted to making a difference in their agricultural communities. They each earned a $1,500 scholarship towards higher education for the 2016-2017 school year.

Recipients that continue to maintain academic excellence are eligible to renew their $1,500 scholarship for up to three years after their initial award, making the total scholarship award available $6,000 per scholar. For students renewing their scholarship please send your 2015-2016 transcripts to scholarships@farmcreditwest.com by July 1, 2016.

Our 2016 Scholarship Recipients: Alexandra Lavy Yuba City, CA Cal Poly, SLO Major: Ag Communications Jonathan & Kristen Lavy

Joshua Cramer Leemore, CA Cal Poly, SLO Major: Ag Business Gary & Julie Cramer

Markus Kasbergen Woodland, CA Cuesta College Major: Dairy Science Jack & Ellie Kasbergen

Angelica Fernandes Tipton, CA Fresno State Major: Ag Education and Communications Gary & Victoria Fernandes

Stefanie Pandol Delano, CA Utah State Major: Ag Business Matt Jr. & Linda Pandol

Meghan Johnson Yuma, AZ Northern Arizona University Major: Business Management Leural Jr. & Shelly Johnson

Bailee Ott Yuma, AZ University of Arizona Major: Ag Technology Management & Systems Lee & Candace Ott

Kelsey Swall Tulare, CA Fresno State Major: Ag Education William & Serena Swall

Molly Doherty Arbuckle, CA Oregon State Major: Ag Business Michael & Amy Doherty

Cameron Abatti Brawley, CA Texas A&M University Major: Ag Economics James Abatti & Deborah Owen

Lauren Danna Yuba City, CA Cal Poly, SLO Major: Ag Business Stephan & Kelly Danna

Olivia Rome El Paso, TX West Texas A&M University Major: Biology Patrick & Elizabeth Rome

Caroline Van Ruiten Robbins, CA Cal Poly, SLO Major: Ag Business Anthony & Patricia Van Ruiten

Logan Taylor Yuba City, CA Cal Poly, SLO Major: Ag Systems Management John & Melissa Taylor

Katlyn Ogram Yuma, AZ AZ Western College Major: Ag Business & Management William & Elizabeth Ann Ogram

Harleen Sandhu Yuba City, CA Yuba College Major: Ag Business Inderjit & Parvinder Sandhu

Macy Lavy Biggs, CA Montana State University Major: Ag Business Mark & Meridith Lavy

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For more information visit www.farmcreditwest.com/ community-support.

Summer 2016

Inaugural Calendar Photo Contest Help us fill Farm Credit West’s inaugural customer calendar with fresh imagery that illustrates agricultural lifestyle, with an emphasis on the generations of people who live it every day. Farm Credit West will be producing a 2017 monthly calendar to be distributed in late 2016. Your photo could be showcased in the calendar, and you could earn a cash prize.

Entry Ideas • Multi-generation

photos showing people working, living or educating the next generation on the farm • Children

living on the farm or filling previous generations’ shoes/roles • County

fairs, 4-H or FFA events showing our investment in the next generation • Seasonal

photos, such as holiday decorations, 4th of July events, pumpkins, winter scenes, etc. are encouraged in these generational photos

Entry Deadline 5:00 PM PDT, July 31, 2016

Winner notification October 15, 2016

Email entries to photocontest@farmcreditwest.com by entry deadline Official contest rules can be found at farmcreditwest.com.

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spotlight

Building blocks of

Farm Credit West

ARIZONA LIVESTOCK PRODUCTION CREDIT ASSOCIATION

Farm Credit Services Southwest Agricultural Credit Association

The East Side Paso Robles National Farm Loan Association

Central Coast Farm Credit Agricultural Credit Association

YUBA-SUTTER NATIONAL FARM LOAN ASSOCIATION

Farm Credit West Agricultural Credit Association Santa Barbara National Farm Loan Association

Arizona Farmers Production Credit Association

FEDERAL LAND BANK ASSOCIATION OF YUBA CITY

Sacramento Valley Agricultural Credit Association

VENTURA PRODUCTION CREDIT ASSOCIATION

FEDERAL LAND BANK ASSOCIATION OF EL CENTRO

Valley AgCredit Agricultural Credit Association Visalia National Farm Loan Association Bakersfield Federal Land Bank Association

VISALIA PRODUCTION CREDIT ASSOCIATION

Elk Grove National Farm Loan Association WOODLAND PRODUCTION CREDIT ASSOCIATION San Luis Obispo Production Credit Association Federal Land Bank Association of Ventura

ARIZONA AGRICULTURAL CREDIT ASSOCIATION

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Summer 2016

Farm Credit Opens 50 Year-Old Time Capsule their predictions,” said Todd Van Hoose, Farm Credit Council president and chief executive officer. “We are proud of the role Farm Credit has played in that success, and Farm Credit’s mission to support rural communities and agriculture remains as vital today as it was when the first loan was made in 1917.”

Later this year, Farm Credit will assemble and bury a new time capsule in Wichita, Kansas, to be opened at the 150th anniversary of Farm Credit.

“I’m pleased to see the forecasts from 50 years ago were accurate, and I’m confident the next 50 years will be even more productive for the Farm Credit System and rural America.” said Senate Ag Committee Chairman, Pat Roberts.

The 1967 predictions accurately identified some of the most prominent drivers of agricultural finance today, including:

Five-year-old Linda Unruh (left) helped seal the time capsule 50 years ago. She was also there to celebrate the opening of the time capsule on February 2, 2016 (right).

Farm Credit unveiled the contents of a time capsule buried in Larned, Kansas in 1967 to mark the 50th anniversary of the Federal Land Bank system, the precursor to today’s Farm Credit System. Fifty years ago, 12 Farm Credit leaders from across the country each wrote their predictions about the future of agriculture and the financing required to feed and clothe an ever-growing population.

Former Kansas Senator Bob Dole was present that day in March 1967 when the time capsule was buried, during the 50th anniversary celebration where 10,000 people gathered for a parade to mark the occasion. Senator Dole’s words prior to that event still ring true today, “There is no better time than the present to join in tribute to all who are engaged in the agricultural enterprises of our country and to wish them success and Godspeed in the momentous years to come.”

At the 2016 Farm Credit Council annual meeting, many items were revealed including predictions from Farm Credit leaders about agriculture and financing conditions today, and documents from the first-ever loan made by Farm Credit in 1917. In many cases, those predictions anticipated the evolution of the industry.

“It’s remarkable to consider the amazing success story of U.S. agriculture in the 50 years since these Farm Credit leaders made

• Complexity and Sophistication of Modern Farming Operations – “Successful farming in the future increasingly will demand a high degree of training and skill…not only in production techniques, but also in business and financial management.”

• Growth in Farm Size – “Million dollar operations will be more common than hundred thousand dollar operations are today. This of course will necessitate the use of more credit.”

• Modern, Market-based Risk Management Practices – “The more sophisticated farmers will actively participate in hedging practices on the livestock and commodity futures market, protecting themselves against adverse price movements both on what they buy and what they sell.”

• Increased Efficiency & Production – “Contractual relationships between producers and processors will be commonplace. The ability to produce products with a high degree of uniformity in accordance with specified characteristics will make contracting very practical.”

• Technological Advances – “Remote control by either man or computer will be used in field work rather extensively.”

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spotlight

2016 H O L I D AY SCHEDULE

Ransomware

MEMORIAL DAY Monday, May 30 ◆

A Growing Trend with Malware Ransomware: malware designed to pressure a victim into paying a “ransom” to regain access to a compromised PC. Unlike traditional malware ransomware does not steal data.

Rather, it holds a PC hostage by either locking a PC with an unknown password or encrypting files, making them inaccessible. In both cases, direct access to the PC or its content is denied with additional threats to delete all files if a payment is not made. The ransom dollar amount is typically small, increasing the likelihood of the victim paying, versus losing valuable information.

The use of ransomware is growing and is projected to increase in 2016. Intel Corp.’s McAffee labs reported that ransomware in 2015 increased by 165% from the year prior — totaling 4 million potential software samples capable of infecting PCs. Along with concerns over the increased usage the creative and changing tactics is raising alarm. One such example, Kovter, is difficult to find as it loads into the registry and memory of a PC. Along with encrypting the PCs contents it also installs inappropriate content on a PC in an effort to increase pressure on a victim for payment by threatening to expose the victim to authorities.

INDEPENDENCE DAY Monday, July 4 ◆ LABOR DAY Monday, September 5 ◆ COLUMBUS DAY Monday, October 10 ◆ VETERANS DAY Friday, November 11 ◆ THANKSGIVING DAY Thursday, November 24

How Does a PC Get Infected?

A PC can be infected by downloading ransomware from a compromised website, spammed email or through other malware that has been loaded on a PC. Once compromised the PC connects to an external web site to download the needed software to begin encrypting the files on the PC and all mapped drives.

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◆ CHRISTMAS DAY Monday, December 26

Summer 2016

Territory and Office Locations

Administrative Office 1478 Stone Point Drive Suite 450 Roseville, CA 95661 916.780.1166

Yuba City Woodland

ÂŤ Roseville

Farm Credit West Administrative Office

Capital Markets 1446 Spring Street Suite 201 Paso Robles, CA 93446 805.237.0998

Hanford

Dinuba

Tulare Capital Markets Templeton Kern County Santa Maria

Carpinteria 1135 Eugenia Place, Suite A Carpinteria, CA 93013 805.684.8771

Carpinteria Ventura

Dinuba

Santa Maria

940 W. El Monte Way Dinuba, CA 93618 559.591.9378

1178 Tama Lane Santa Maria, CA 93455 805.922.7991

Hanford

Tempe

1111 W. Lacey Boulevard Hanford, CA 93230 559.584.2681

3003 S. Fair Lane Tempe, AZ 85282 602.431.4100

Imperial Valley

Templeton

Woodland

485 Business Park Way Imperial, CA 92251 760.355.0291

175 Cow Meadow Place Paso Robles, CA 93446 805.434.3665

440 Pioneer Avenue Woodland, CA 95776 530.666.3333

Kern County

Tulare

Yuba City

19628 Industry Parkway Drive Bakersfield, CA 93308 661.399.7360

200 E. Cartmill Avenue Tulare, CA 93274 559.684.1478

900 Tharp Road Yuba City, CA 95993 530.671.1420

Rural Arizona Safford

Ventura

Yuma

1120 S. 20th Avenue Safford, AZ 85546 928.348.9571

2031 Knoll Drive Ventura, CA 93003 805.477.1020

2490 S. 5th Avenue Yuma, AZ 85364 928.344.3200

Tempe Imperial Valley Yuma

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Rural Arizona Safford

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1478 Stone Point Drive Suite 450 Roseville, CA 95661

Standing by you for 100 years www.farmcreditwest.com 800.909.5050

We’ve spent the last century focused exclusively on agriculture with low rates, unmatched expertise and the best customer service around. The way we look at it, we’re just getting started.