The Rural Scene Fall 2019

Rural Scene

THE

JUSTIN AND RANDI LOWE OF RUSSELLVILLE ARE FULL-TIME BEEKEEPERS.

FAL L 2019

Enriching rural life.TM

On the Cover

Rural Scene

THE

The Lowes were pleased to learn Farm Credit supports all types of agriculture when they purchased their beekeeping business. Page 6

PUBLISHED BY

Farm Credit of Western Arkansas is a customer-owned financial cooperative providing financing and related services to farmers, ranchers, rural homeowners, agribusinesses and timber producers in 41 western Arkansas counties.

With a loan volume of $1.3 billion, Farm Credit of Western Arkansas is a member of the 103-year-old Farm Credit System, a nationwide network of borrower-owned lending institutions providing more than $217 billion in loans to rural America.

In This Issue

5

Director Scene 2019 Director Nominations

14

Kohl-laborations Insights from nationally-acclaimed ag economist Dr. David Kohl

6

Busy as Bees Members Justin and Randi Lowe share the story of their beekeeping business

16

Scholarship Winners $1,000 awards to 20 area youth

19

Community Scene Supporting rural western Arkansas

Farm Credit Scene 11 National Connecting with legislators in Washington, D.C.

12

Cooperative Scene Highlighting cooperative principles that define Farm Credit

23

Western Scene Employee happenings

Office Locations and Loan Officers Arkadelphia 2858 Walnut (870) 246–8061 Rachael Godwin, David Smith

Greenbrier 89C N Broadview St. (501) 679–5464 Josh Dunlap

Ozark 1808 Farm Credit Dr. (479) 667–3855 Tom White

Benton 15227 1-30 South (501) 860–6391 Kevin Barham

Harrison 129 W Industrial Park Rd. (870) 741–2020 Brad Matlock

Paris 3772 W Hwy 22 (479) 963–2841 Donna Griffin

Bentonville 3600 SW Regional Airport Blvd.

Suite 16 (October 1) (479) 273–3311 Darla Larson, Dilynn Dodd

Hope 1722 E 3rd St. (870) 777–6704 Jerry Nance, Clay Lance

Prairie Grove 1181 E Heritage Pkwy (Hwy 62) (479) 400–6160 Daniel Keeton, Tyler Whorton

Huntsville 14238 Hwy 412 (479) 738–6622 Trey Villines

Russellville 2797 E Parkway (479) 968–5030 Jim Taylor, Anna Lester

Magnolia 1703 Pittman St. (870) 234–8611 Shaun McKamie

Siloam Springs 4970 Hwy 412 East (479) 524–6754 Savannah Dickinson

Mena 1607 Hwy 71 North (479) 394–1027 Rex Dollar

Texarkana 2305 Trinity Blvd.

(870) 772–1882 Jonathan Shumate, Jennifer Hooper, Rustin Watson

Clarksville 1007 Interstate Dr. (479) 754–2876 Anna Lester, Sherry Boen Danville 302 E 5th St. (479) 495–2711 Lora Briggs De Queen 800 E Magnolia Ave. (870) 584–3113 Jordan Icenhower Fort Smith 12907 Hwy 71 South (479) 434–4040 Andrea Leding, James Crabtree

2

Glenwood 131 Hwy 70 East (870) 356–2023 Adam Baker

Morrilton 1329 Hwy 9 (501) 354–2377 Hank DeSalvo Nashville 302 W Bishop (870) 845–2221 Denise Sweat

Tontitown 1091 W Henri De Tonti Blvd.

(479) 717–6740 Misty Eastep Waldron 502 Frankie Matthew Dr. (479) 637–2087 Rex Dollar

Letter from the CEO

Board of Directors Time certainly flies when you are having fun. With 2019 more than half over, it’s a good time to take a peek at our semi-annual report card and evaluate how our year is going.

Chair Kenny Brixey, Casa Vice Chair Bob Dixon, Havana Randy Arnold, Alma Steve Burke, Washington

Brandon Haberer

Farm Credit of Western Arkansas’ performance is on pace with previous years’ positive results which, you’ll be glad to hear, helps set the stage for what should be another good patronage payout in February. I attribute this success to directors, management and employees pulling together to make it happen. It’s truly a team effort. I couldn’t be more proud of our employees on the front lines, in the branch offices, cultivating lending relationships with members daily. Know that those folks are well supported by a talented team working hard behind the scenes, as well.

It takes loan documentation specialists, appraisers, marketing folks, credit analysts, accounting professionals, a human resources department and an experienced administrative support team to support branch staff who are extra busy servicing members' loan needs.

Directors and management teams are providing effective direction and leadership and the association has hit its stride in spite of a few ag economy challenges. The core agricultural commodities in our lending portfolio (poultry and beef cattle) have seen limited expansion and, in some cases, suppressed market prices. In January, the management team looked at economic factors and prepared for a good year, financially, but not the banner growth year we experienced in 2018. I’m proud to say Western Arkansas employees have come through and we’re on track for another great year.

We also know that national and global trends impact western Arkansas. Our directors are committed to building relationships with legislators on both the state and national levels to ensure Farm Credit can advocate on behalf of member needs. I joined a handful of directors and staff at the national Farm Credit Fly-In in Washington, D.C. in July. We used the opportunity to share concerns about rural community needs and agriculture with Arkansas senators and congressmen.

Specifically, we shared our support of the new United States – Mexico – Canada Agreement (USMCA, formerly NAFTA) because it affords Arkansas farmers as many, if not more, advantages than the previous international trade agreement. We shared our concern for members affected by spring flooding across the state and learned about the work they’ve already done to help secure aid.

Farm Credit feels like it has important allies in Washington, D.C. who understand our mission to provide reliable credit and to serve the needs of our rural communities. Ensuring rural America has access to broadband communications is one such need Farm Credit is championing.

Directors, management and employees work on behalf of you, our members. Our success hinges equally on members supporting Farm Credit and, ultimately, continuing to refer their friends and family to Farm Credit to help us continue these great trends together.

Brandon Haberer President and CEO

Chuck Davis, Ashdown Pam Faulkner-Moore, Casa Dusty Hampton, Russellville Kim Hogan, Ozark Ron Hubbard, London Cody Jones, Mansfield Bill Linton, Dover Julie Lively, Fulton Kenny Martin, De Queen Gene Pharr, Lincoln Mark Wilcox, Greenbrier President and CEO Brandon Haberer

About the Rural Scene The Rural Scene is produced for members and friends of Farm Credit of Western Arkansas.

Address comments and story ideas to Editor, The Rural Scene Farm Credit of Western Arkansas 3115 W. 2nd Court • Russellville, AR 72801 Editor Jill Robertson Jill.Robertson@farmcredit.com Contributing Writer and Photographer Lindsey Holtzclaw Lindsey.Holtzclaw@farmcredit.com myaglender.com Article quotes have been edited for content and appropriateness.

Follow us on social media!

Find us at “Farm Credit of Western Arkansas” on Facebook, and @FarmCreditWEAR on Twitter and Instagram.

Member of the Cooperative Communicators Association. © 2019 Farm Credit of Western Arkansas.

Farm Credit of Western Arkansas is an equal opportunity employer and does not discriminate on the basis of race, color, religion, gender, sexual orientation, gender identity or expression, national origin, age, disability, genetic information, marital status, amnesty, or status as a protected veteran in accordance with applicable federal, state and local laws.

3

DIRE C TO R SC E N E

Letter from the Board Chair Nationally, Farm Credit has made a concerted effort to increase its presence on Capitol Hill. A team in Washington, D.C. is committed to sharing Farm Credit’s story to ensure policy makers understand Farm Credit’s commitment to rural America.

Kenny Brixey

Farm Credit directors, employees and members assist this effort by converging on Washington, D.C. for a one-day Fly-In every year. The event has grown to more than 700 Farm Credit folks advocating for issues and legislation impacting Farm Credit, our associations and members across the country.

I participated in July and can tell you that Arkansas senators and congressmen have a solid understanding of Arkansas’ agricultural needs. I was impressed to see how engaged they are with local issues like recent flooding along the Arkansas River.

Nationally, Farm Credit’s message is the importance of members’ voices being heard through important grassroots efforts. More than half a million members create a significant voice, nationally, when it comes to issues important to Farm Credit. That voice has made a difference in important legislation.

That grassroots effort begins here in western Arkansas.

As members, we have to first be connected and committed to the business of our own association. The best way to connect is to participate in our annual director election.

Learn about your peers running for director positions and cast your vote. Look for your ballot to arrive by mail in late September.

Retiring directors Duane Wilson and Randy Arnold both personify Farm Credit commitment. While not a member himself, Duane Wilson has served as an outside director for the past 15 years. A retired accountant, he brought valuable professional perspective to the board room.

Randy is a long-time member and has served as a director since 2005. Randy’s first-hand experience with poultry, cattle, a you-pick strawberry operation and produce store allowed him to weigh in on both traditional and non-traditional ag issues and needs.

Thank you Randy and Duane for your service to Farm Credit. In appreciation, Farm Credit has awarded a $500 scholarship to a University of Arkansas ag business student in honor of Duane’s service and has made a $500 donation to Alma FFA Supporters and Alumni, Inc. in honor of Randy Arnold’s service.

Kenny Brixey, Chair, Board of Directors Farm Credit of Western Arkansas

A VIEW LIKE THIS

may be closer than you think.

Construction loans with one time closing Long-term, fixed interest rates

Call your local Farm Credit office today!

All loans stay in-house. We never sell your loan!

Siloam Springs ●

Boone

Carroll

Baxter

Marion

● Harrison

● Tonitown Madison

● Huntsville

Washington

Newton

● Prarie Grove

Franklin

Crawford

Searcy

Johnson

Van Buren

● Ozark

Ballots will arrive in your mailbox. Voting is your right and responsibility as a cooperative member.

Pope

● Clarksville Conway

● Fort Smith

Russellville

Logan Sebastian

• Director candidate information and ballots will • For a ballot to be eligible, it must mail in mid-September. be signed by the voting stockholder.

If multiple people are on a loan, check • Envelopes containing ballots will be addressed the envelope containing the ballot information to voting stockholders as of date of record to verify the voting stockholder’s name.

— July 31, 2019.

• Ballots must be received by 4:30 PM on • Review candidate information, complete October 15. ballot, sign, and return in postage-paid envelope provided.

• Results announced October 16 and posted at all branch offices and at myaglender.com.

• Voting stockholders are responsible for electing directors and nominating committee members annually.

Faulkner

● Paris

● Greenbrier

● Morrilton Yell

● Danville

Perry

● Waldron Scott Saline Polk

Garland

Montgomery

● Mena

Pike

● De Queen

Grant

● Arkadelphia

● Nashville

Sevier

● Benton

Hot Spring

● Glenwood

Howard

DIRE C TO R SC E N E

2019 Annual Director Election

● Bentonville Benton

Clark

Dallas

Hempstead Nevada

Little River

● Hope

Ouachita

Calhoun

● Texarkana Columbia

Miller

● Magnolia

Union

Lafayette

Your vote also supports Arkansas Youth!

You vote, and Arkansas FFA and 4-H benefit! For every eligible ballot received, Farm Credit of Western Arkansas will donate $10. Funds will be split evenly between the Arkansas FFA Foundation and the Arkansas 4-H Foundation.

2019 Director Candidates Listed Alphabetically (All positions are a four-year term.)

AREA 1

Audie R. "Renny" Chesshir • Crawford Don R. Malone • Benton

AREA 3

James "Grady" Bauer • Logan Robert "Bob" Dixon • Yell

AREA 5

Steve Burke • Hempstead Patrick A. Frachiseur • Howard

2019 Nominees For Association Nominating Committee (All areas for a one-year term.)

AREA 1A

Johnny L. Gunsaulis • Washington Ronnie T. Horn • Washington

AREA 3A

Allen L. Johnson • Logan Gerald W. Strobel • Logan

AREA 5A

Rainna K. Ghormley • Hempstead Randy W. Peck • Hempstead

AREA 1B

John W. Calhoon, Jr. • Washington William "Will" P. Lane • Benton

AREA 3B

Casey T. Cotton • Logan Shawn A. Ezell • Logan

AREA 5B

Danielle M. Kitchens • Howard Dana Newberg • Howard

AREA 2A

Justin "Taylor" Gattis • Franklin Ernest J. "EJ" Neissl • Franklin

AREA 4A

Ronnie D. Hall, Sr. • Faulkner Jerry L. Hartwick • Faulkner

AREA 6A

Jonathan "Johnny" Dooley • Sevier Robert "Hunter" Lipsey • Sevier

AREA 2B

James A. Ford • Franklin Mary "Jeana" Sing • Franklin

AREA 4B

James W. Mann • Perry Fred Nutt • Perry

AREA 6B

Monte K. Davis • Sevier Jacob Hooper • Sevier

Directors Duane Wilson & Randy Arnold Retire Duane Wilson of Springdale and Randy Arnold of Alma are retiring from the Board of Directors.

Duane Wilson was elected as an outside director in 2004. In honor of his 15 years of service, a $500 scholarship has been awarded to an ag business student at the University of Arkansas.

Randy Arnold served as a director for 14 years and a $500 donation to Alma FFA Supporters and Alumni, Inc. has been made in his honor.

5

BUSY AS BEES

Justin & Randi Lowe tackle the adventure of becoming commercial beekeepers and starting Rural Route Farms.

When we sit down to enjoy a meal, we’re often reminded to thank a farmer for the hard work that goes into growing our food, but there’s another hard worker who deserves equal credit for our nation’s food supply – bees.

Weighing only one tenth of a gram, bees are tiny, but mighty. Not only do they produce their own food source in the form of honey, they’re instrumental in the production of $15 billion worth of crops each year. In fact, one out of every three bites of food we enjoy can be attributed to their direct and indirect pollination.

Bees are responsible for carrying pollen from one plant to another, facilitating reproduction in some plants. Apples, blackberries, watermelons and almonds are just a few crops that rely on bees moving pollen from one plant to another.

With reports of the decline of honeybees over the past few years, it’s more important than ever to have caretakers who help them thrive.

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didn’t know, was how those first three hives would grow to become a business.

After several years of keeping bees as a hobby, Justin started working for a commercial beekeeper in Johnson County. In 2018, Justin and Randi were presented with the opportunity to buy the beekeeper’s hives, supplies and bee yards. The purchase enabled them to begin working for themselves.

After careful thought and working out financing details with Farm Credit, the Lowes’ beekeeping operation quickly grew from a hobby and working for someone else, to owning a few hundred beehives in more than a dozen locations.

From this shift, Rural Route Farms was born.

Despite having his own experience with bees, Justin said becoming a commercial beekeeper still came with its share of challenges.

“We had an idea of what we were doing on a small scale, but doing it on a large scale is Justin Lowe began beekeeping in 2012 after he different,” Justin explained. “We’ve had to learn and his wife, Randi, were approached by members from making mistakes and by being around the of a bee club who shared the joys of beekeeping bees every day. You learn from what you did at the Arkansas Flower and Garden Show. yesterday and improve on what you see year after year.”

“Next thing we knew, we were purchasing hives and equipment, ready to get started,” Justin said. Aside from trial and error, Randi says they also have a support system they can call with questions Soon, Justin and Randi were genuine beekeepers and, of course, plenty of information to be found and the proud owners of three hives, looking on the internet and in books. forward to enjoying fresh honey. What they

Justin and Anna suit up to take a closer look at the bees.

Rural Route Farms honey ready for local farmers markets.

Randi and Justin with children JD and Carter on the farm.

Bees hard at work.

Justin says his biggest challenge in becoming a commercial beekeeper has been learning how to delegate his time.

“I feel like I could work 24 hours a day,” he said. “Just starting out, there’s a million things that need to be done and a lot of times it’s just Randi and me doing it, so we struggle sometimes finding time for everything else.”

Maintaining their bees and selling and marketing their products is a year-round job for the Lowes.

While they produce a large amount of honey each year, Rural Route Farms’ business plan is not built around this sweet treat.

Instead, their operation is driven by helping other beekeepers.

Randi and Justin have created a brand that local beekeepers are buzzing about. Rural Route Farms specializes in selling quality nucs and queens and area beekeepers trust their bees when starting new hives. Because the bees are raised locally and their hives have good brood patterns (frames filled with eggs and very few empty cells), the nucs they sell have a high success rate.

For the non-beekeepers, a nuc is a small bee colony that includes the essentials of beekeeping – bees, brood, food and a queen. Nucs are created in a small version of a beehive, only holding five frames. Justin creates the nucs by splitting a larger, established hive.

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Splitting hives also helps prevent a challenge beekeepers face – swarming.

Like us, bees need space to live their lives. In the spring and summer, a colony can expand quite dramatically, both in numbers and in the space needed. When space starts becoming too limited, bees need a solution. Their solution is to swarm, turning one colony into two.

“Swarming is a natural tendency for bees. When you take about half of the bees out, they’ll think they’ve already swarmed and it can prevent your larger hives from doing it on their own,” Justin explained.

Rural Route Farms’ nucs and queens are sold at Central Beekeepers Supply in Russellville. Justin also ships queen bees across the country using special shipping containers.

“I ship them to the northern states quite a bit,” Justin said.

“Since our seasons are different, my bees are ready earlier.

I’ve shipped bees as far as Illinois and Wisconsin.”

Work looks different during various seasons at Rural Route Farms. During the spring, Justin spends time checking hives to ensure the health of the queens and making sure the hives are ready to make nucs.

Towards the end of spring and beginning of summer, the honey harvesting phase starts. Justin collects honey supers (the top box of frames the bees fill with honey), removes the wax cappings and extracts the honey before returning the box to the hive for bees to refill. The honey supers are only harvested once, saving honey for the bees to feed on throughout the winter.

From summer through fall, Rural Route Farms runs their queen program. Justin says they will usually catch queens twice a week from the middle of May through the first of October. He also spends time checking the hives to see if they have enough honey stored up to feed through the winter.

large and small agribusinesses and even folks new to farming, loan officers are skilled at sitting down with customers and designing a loan to fit their needs. Farm Credit empowers staff like Anna to understand members’ unique needs and structure loans to meet those needs.

Finally, in the wintertime, Justin spends his time monitoring feed levels, only opening up the hive once a month.

Anna had an existing interest in bees that she attributes to growing up with a father who was a hobby beekeeper.

Working directly with the bees is only a part of the couple’s farm duties.

A friendship between Anna and the Lowes continued to grow well after the loan was finalized, as did Anna’s interest in bees.

Justin and Randi spend many of their weekends selling honey at local farmers markets. In fact, since they sell honey at both the Dardanelle Farmers Market and the Pope County Farmers Market, you can often find Justin at one and Randi at the other.

It wasn’t long before Anna and her husband, Ty, purchased two hives from Central Beekeepers Supply in Russellville and hit the ground running as beekeepers. Anna and Ty harvested their first crop of honey this summer.

Randi says they also heavily rely on help from family members in order to cover all their bases.

“In addition to the farmers markets, we also sell our product at community events and festivals. We’re usually spread out, trying to sell it everywhere,” she said. “That’s the struggle of operating a small business.”

Randi schedules and coordinates events and maintains stock in a few store locations. She also works part-time as a dental hygienist and handles all of the marketing for Rural Route Farms. She smiles and says she also keeps their children, Carter (age 4) and JD (age 2), in line.

Rural Route Farms has an active Facebook page. Randi shares behind-the-scenes looks at farm life and lets followers know when products are available. She also uses social media and her presence at farmer markets to educate the public and answer beekeeping questions.

Carter and JD are captivated by the beekeeping process.

They know to keep their distance from the actual bees, but enjoy helping carry items and watching the honey harvesting process.

“They love anything that involves being outside,” Randi said with a grin as Carter and JD picked up large sticks and started making a game of their own. “Of course, they both love the honey too.”

Justin and Randi’s love for bees appears to be contagious. It has rubbed off on their kids and Farm Credit loan officer, Anna Lester, as well.

Anna and Randi met through Randi’s work as a dental hygienist.

When the Lowes were presented with the opportunity to take on commercial beekeeping, they called Anna to see if she could finance the business, despite it being a non-traditional agribusiness.

“Since this is a unique type of loan, we talked through what they wanted to do and worked together to put a business plan in place,” Vice President Anna Lester said. “Once their plan was complete, we were able to structure a loan that fit their needs.”

What Anna was able to do for the Lowes is common practice for Farm Credit. With a mission to support all types of agriculture,

Justin pulls a frame out of a nuc to check its progress.

9

M E M B E R SC E N E

“Anna has been helpful every step of the way. Anything we need, we can just call her,” Randi said. “It’s really helpful that she understands beekeeping and has an appreciation for what we’re doing.”

Every beekeeper can point to their own, unique reasons for raising bees.

For Anna, it’s that her love for beekeeping has turned into a hobby she and her husband can enjoy together.

Justin and Randi say they both appreciate a bee’s natural work ethic.

Although he works with bees 365 days a year, Justin says he’s still in awe of a bee’s instinct to get the job done.

“It’s really amazing to see one hatch out of the frame. It immediately wobbles around for a little bit and then goes to work. It doesn’t have to learn anything; it just instinctively knows to do its thing,” he said.

It’s no secret that bees have an incredible task for such small creatures. Watching them shuffle across honeycomb, you’ll notice they never stop moving, much like Justin and Randi. Raising both bees and two young children comes with its share of long hours and physical demands, but the couple agrees that the work they are doing is rewarding and exciting.

Each day presents its own challenges, but beekeeping is also full of constants and patterns. Randi says it’s their annual habits that make the insects fascinating.

Vice President Anna Lester shared with the Lowes that their beekeeping business fits with Farm Credit's mission to support all types of agriculture.

“I think bees are interesting in general. It’s amazing how they know to perform such complex activities for a small creature and they do it every year, almost on a schedule,” Randi said.

“We even go back to our pictures and say, ‘Hey, we were doing the exact same thing on this day, last year.’ I love seeing how they work and all they do for us. It’s cool being a part of that.”

Bees work hard. The Lowes’ work ethic is equally impressive.

Farm Credit believes its staff works hard, as well, to assist members like Randi and Justin with financing solutions that fit unique ag operations.

Story and photos by Lindsey Holtzclaw

QUEEN

A BEE PRODUCES

1/12 TSP

OF HONEY IN ITS LIFE

ONLY 1 PER COLONY

50,000

LAYS 1,000-2,000 EGGS A DAY

BEES IN A HIVE WORKERS

A BEE CAN FLY UP TO

15-20 MPH 10

HONEY

IS THE ONLY FOOD THAT WILL NEVER SPOIL

FEMALE BEES CARE FOR EGGS AND ATTEND TO QUEEN CLEAN & GUARD HIVE BUILD COMB & MAKE HONEY

DRONES

ONLY JOB IS TO MATE WITH QUEEN DIE AFTER MATING DO NOT HAVE STINGERS EVICTED FROM HIVE DURING WINTER

DC Fly-In

1.

Nationally, the Farm Credit System is continually building relationships with policymakers in Washington, D.C. Telling the Farm Credit story on Capitol Hill is increasingly important as each new Congress has fewer members with ties to agriculture.

3.

2.

4.

N AT IO N AL FARM C RE DIT SC E N E

National Farm Credit

Some associations bring customers. Whether it’s a conversation with a cattle rancher from Texas, a cranberry producer from Washington state, a soybean farmer from Illinois or a citrus grower from Florida, legislators hear, first-hand, how Farm Credit is impacting agriculture. That tangible connection to agriculture and Farm Credit is powerful.

Farm Credit’s mission to support rural communities and agriculture with reliable credit is better understood in Washington, D.C. since beginning the annual Fly-In events.

It’s become a tradition for the directors, CEOs and employees of the Arkansas Farm Credit associations to host a joint breakfast meeting on the day of the Fly-In for Arkansas legislators and their staff members.

It’s an opportunity for legislators to offer a first-hand account of current legislative happenings and policies impacting Arkansas agriculture.

5.

6.

This year, Senators John Boozman and Tom Cotton and Congressmen Bruce Westerman, Rick Crawford and Steve Womack attended the breakfast and addressed the group. Congressman French Hill was unable to attend but met with Arkansas directors and CEOs in Little Rock a few weeks prior to the Fly-In.

1. Congressman Steve Womack, CEO Brandon Haberer and Western Arkansas Board Chair Kenny Brixey discuss current ag issues.

2. Congressman Bruce Westerman, Congressman Rick Crawford and Senator John Boozmen address the Arkansas delegation.

3. Arkansas CEOs present Senator Tom Cotton with a Farm Credit momento. 4. Western Arkansas directors and CEO Brandon Haberer on Capitol Hill. 5. A marketplace event treated legislators and their staff members to ag products from across the country. 6. Part of the Western Arkansas delegation presented Congressman Bruce Westerman with a Farm Credit bag.

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C O O P E RAT IVE SC E N E

7 Cooperative Principles Voluntary Membership Democratic Member Control Members’ Economic Participation Autonomy and Independence Education, Training, and Information Cooperation Among Cooperatives

Commercial Financial Group (CFG) A Farm Credit Collaboration

Concern for Community

Cooperation Among Cooperatives Cooperative organizations work together through regional and national structures for the betterment of all.

The Commercial Financing Group (CFG) consists of eight separate Farm Credit associations working together to finance large agribusiness companies serving rural America. Each association assumes responsibility for financing a portion of large loans. This collaboration diversifies risk among participating associations – benefitting them all.

The CFG is a Farm Credit collaboration designed to be competitive in the syndicated and participation loan markets. The collaborative effort allows CFG to finance large loans that individual associations may not be able to finance alone. This creates more available financing for large agribusinesses which benefits them, as well.

A syndicated loan is financing offered by a group of lenders – referred to as a syndicate. Together, the group provides funds for a single borrower.

The CFG was created to serve a broader Farm Credit System customer. That appealed to Farm Credit of Western Arkansas when we joined the CFG group in 2006. At the time, our association had a large concentration and exposure to poultry loans and saw CFG as one way to diversify the association’s loan portfolio and risk.

The CFG collaboration has benefitted Farm Credit of Western Arkansas over the past 14 years with:

and provide meaningful revenue sources enabling us to offer competitive Patronage Cash opportunities for our members. As it stands today, the CFG loans we participate in represent about 20% of our outstanding loan volume and about 20% of our income stream.

There is one more strategic benefit tied to Farm Credit of Western Arkansas’ participation in the CFG. Through this collaboration, we gain access to a number of industries that offer poultry, timber, cattle, rural utility and winery expertise. This alliance has prepared us to be a leading expert in many of the ag industries we finance across the state. This expertise allows us to better serve all borrowers and enhance the lending process.

The CFG is just one example of how Farm Credit of Western Arkansas is collaborating with other Farm Credit associations. CFG may be the collaboration that impacts members most, but is least seen or understood by members.

• Loan growth • Increased Return on Investments (ROI) and Return on Assets (ROA) • Low risk credit profiles (investment grade)

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CFG loan participations provide a consistent and reliable income stream for our association. These earnings help further diversify our loan portfolio, reduce loan concentrations, lower operating rate

Charlie McConnell

Senior Vice President & Chief Lending Officer

7 Cooperative Principles Voluntary Membership Democratic Member Control

As a cooperative, Farm Credit takes its responsibility to provide educational opportunities and training seriously.

Members’ Economic Participation Autonomy and Independence

We believe equipping our members for financial success is key to helping rural western Arkansas thrive. We take it a step further and offer educational opportunities to non-members, as well. Again, helping all producers do well helps our communities remain strong.

Education, Training, and Information Cooperation Among Cooperatives Concern for Community

Beef IQ Workshops Significant grant support to the University of Arkansas Division of Agriculture for their annual Beef IQ workshops held across western Arkansas.

C O O P E RAT IVE SC E N E

Education & Training

Education, Training, and Information

Local and Regional Training Small, regional training events hosted at our branch offices by members of our experienced credit team. Information ranges from an array of credit topics to creating business plans. Future plans include hosting experts who can address tax changes and succession planning.

Cooperatives provide education and training for members, elected representatives, managers and employees so they can contribute effectively to the development of their cooperative. Members also inform the general public about the nature and benefits of cooperatives.

Annie's Project Long-time annual sponsorship of Annie’s Project, through the Arkansas Women in Agriculture organization. Annie’s Project is a nationally-acclaimed business training model for women producers.

FREE Conference

February 25th – 26th

Wyndham Riverfront, North Little Rock Designed For...

2020

FUTURE

LEGAC Y Statewide Farm Credit

YOUNG & BEGINNING

FARMER CONFERENCE Network with fellow young farmers from across Arkansas at this FREE two-day learning event facilitated by Dr. David Kohl!

• Ages 18-40, any farming experience welcome • Any size farming operation • Both full-time and part-time farmers • Couples are invited to attend together • Open to Farm Credit customers and non-customers alike

It's an opportunity to...

• Network with young, beginning farmers from across Arkansas • Discover the top 12 practices of successful producers • Learn how to position for success in a cyclical economy

APPLY ONLINE BY DECEMBER 1, 2019 www.myaglender.com Questions?

Call Jill Robertson at 479-968-1434, ext. 5106

13

KOHL

-laborations

Commentary, wisdom, and perspectives from globally renowned agricultural economist, Dr. David M. Kohl.

How to find your

Competitive Edge Through Learning Opportunities Embracing knowledge, capitalizing on opportunities, and fine-tuning their businesses helps farmers find their competitive edge in today’s ag economy.

Embracing knowledge and new information provides today’s farmers with a competitive edge. Farm family businesses exhibiting resiliency through both the prosperous and challenging cycles of the ag economy value and prioritize lifelong learning, according to Dr. David Kohl, professor emeritus at Virginia Tech University, who will facilitate the Arkansas 2020 Future Legacy Young Beginning Farmer Conference February 25-26 in Little Rock.

The Farm Credit conference targets young producers and is held every-other year. It is free to attendees and hosted by Farm Credit of Western Arkansas, AgHeritage Farm Credit Services and Farm Credit Midsouth. The conference is open to full and part-time farmers and attendees do not have to be a Farm Credit member.

“Finding time in the daily hustle and bustle can prove challenging, but those who take time to invest in their own professional development more quickly adapt in an ever-changing environment,” says Dr. Kohl. “Take advantage of educational opportunities whenever you can.”

“As a young farmer, it’s important to make plans with the older generations running the business,” says Dr. Kohl. “The four cornerstones of management are creating a plan, strategizing, executing, and monitoring your performance and progress.”

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Using the four cornerstones, in combination with the rest of Dr. Kohl’s ten practices producers can use to capitalize on opportunities, can guide young producers as they take on more management roles on the farm.

10 WAYS FARMERS CAN SEIZE OPPORTUNITIES IN TODAY'S AG ECONOMY 1.

Apply the four cornerstones of management Planning, strategizing, executing, and monitoring your business means continuously looking forward while remaining agile when new opportunities arise.

2. Establish goals and write them down 80 percent of individuals don’t have goals, 16 percent do but keep them in their heads, while only four percent write them down. Research shows those who write down their goals are more likely to hold themselves accountable.

3. Invest in productive capital and human assets The great economic super cycle was a magnet, attracting both productive and unproductive individuals and possessions; consider liquidating non-income producing assets (land, machinery, or human) and develop specific responsibilities and accountability measures for all personnel.

4. Adjust family living budgets to reflect changing income Family living budgets that expanded during more profitable times should be re-evaluated to mirror changing incomes with all family members involved.

5. Find a mentor/mentee relationship The exchange of ideas and philosophies with a good set of mentors with different business experiences and life skills may energize management decisions.

6. Tap into a team of advisors Meet with a trusted team of advisors, including your local Farm Credit professional, who are less emotionally invested in the business to glean fresh perspectives, creative solutions, and access to financial tools.

7.

Think better is better, before bigger is better Pursue operational and financial efficiencies and fine-tune management capabilities before focusing on growth.

8. Learn from new experiences Networking, educational activities, and travel in and outside of the United States provide exposure to new, valuable ideas and relationships 9. Remember cash is king Volatility in the industry is creating tremendous opportunities for success or failure; producers with cash and liquidity maintain playing power when facing unexpected business opportunities or expenses.

10. It’s good to sweat the small stuff Examine each component of your business to determine its draw on the operation to make it clear which endeavors need to be re-evaluated to maximize profitability.

Meet Dr. Kohl and find your own competitive edge at our FREE learning conference.

February 25th – 26th North Little Rock

All young, beginning farmers are invited – application information and complete details on page 13 of this magazine.

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$300,000 in scholarships awarded since 1998

$1,000 Scholarships Awarded to 20 Area Students

Kalli Bonds

Farm Credit of Western Arkansas awarded $20,000 in academic scholarships to some of western Arkansas’ most talented young people again this spring.

Cecil, AR Arkansas Tech University Pre-Vet

A panel of independent judges from outside Farm Credit of Western Arkansas’ service territory looked at academic performance, school and community leadership, extracurricular activities, and agricultural interests and pursuits to choose this year’s recipients.

Some were raised on farms and have future career aspirations that include farming or the rural lifestyle. Others value agriculture, but are following less agricultural career paths. All have proven themselves as leaders among their peers and in their communities.

Makala Fox Lincoln, AR University of Arkansas Nursing

Congratulations to these students on their current accomplishments and all they will achieve through education. Thank you to all who applied. Look for 2020 scholarship program details at myaglender.com, after January 1, 2020.

Emily Johnson Paris, AR Arkansas Tech University Ag Business

Assistant Vice President Misty Eastep presents a scholarship award to Jordan Horn of Springdale.

Halie Standerfer 16

Cove, AR U of A Fort Smith Finance

Kaylee Breckling

Montana Burris

Paul Cole

Danielle Duggan

Benton, AR Southern Arkansas University Ag Business

Scranton, AR U of A Fort Smith Business/Finance/Marketing

Lincoln, AR Southern Arkansas University Ag Business

De Queen, AR Arkansas Tech University Business Management/Marketing

Garrett Hendrix

Jordan Horn

Seth Horn

Barrett Jackson

Plumerville, AR Mississippi State University Forestry

Springdale, AR University of Arkansas Poultry Science

Springdale, AR Southern Arkansas University Ag Education

Ozan, AR Southern Arkansas University Ag Business

Katelyn King

Emily Linn

Victoria Porter

Hailey Roye

Paris, AR University of Central Arkansas Health Sciences

Siloam Springs, AR NE Oklahoma A & M Pre-Vet

Branch, AR University of Arkansas Social Work

Fayetteville, AR University of Arkansas Animal Science/Engineering

Kaylie Stone

Taylor Waters

Cecily Weaver

Lexey Williams

Gurdon, AR Southern Arkansas University Ag Education

Willisville, AR Southern Arkansas University Biology

Conway, AR Arkansas Tech University Nursing

Berryville, AR Southern Arkansas University Ag Business/Animal Science

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C O M M U N IT Y SC E N E

$50,000 Donation to

Arkansas Red Cross

Farm Credit of Western Arkansas, AgHeritage Farm Credit Services and Farm Credit Midsouth, together, made a $50,000 donation to the Arkansas Red Cross in June to assist persons affected by Arkansas River flooding in late May and early June.

Young Professionals Service Event Farm Credit’s Young Professionals group donated and packed 100 military care packages for Huck’s Military Care Package Project. Huck is the 9-year-old son of Farm Credit members Caleb and Briana Plyler.

Arkansas Forestry Association Donation We're proud to team up with AgHeritage Farm Credit Services and Farm Credit Midsouth to make a $1,000 donation to the Arkansas Forestry Association/AFA Education Foundation for their 2019 Teacher's Conservation Tour (TCT) Workshop Series. TCT is an extensive educator workshop, focusing on the environmental, ecological, and economic benefits of Arkansas’s forestlands and timber industries. Interactive sessions and onsite tours give participants a firsthand look into the modern forestry industry.

Arkansas FFA State Convention In April, we spent three days at the 92nd Arkansas FFA State Convention. Highlights were meeting young leaders at the College & Career Expo and presenting Farm Credit of Western Arkansas 2019 FFA scholarships to Halie Standefer (Mena FFA Chapter) and Julie Griffin (Siloam Springs FFA Chapter).

Homegrown by Heroes Scholarship Recipients

In May, we attended the Homegrown by Heroes Farm to Fork Celebration to recognize Farm Credit’s 2019 Homegrown by Heroes scholarship winners. $1,000 scholarship recipients are Taylor Brandt, Brenna Cannon, Brent Carper, Paul Cole, Nicholas Maynard, Baylee McLellan, Emma Ragsdale and Baxter Wallis.

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C O M M U N IT Y SC E N E

Arkansas FFA & 4-H State Officer Dinners We enjoyed hosting the 2019-20 Arkansas FFA and Arkansas 4-H state officers for dinners soon after their elections. The dinners give Farm Credit a chance to meet the officers, learn about their plans for the year and demonstrate our support.

Arkansas FFA & 4-H Foundation Donations We teamed up with AgHeritage Farm Credit Services and Farm Credit Midsouth to donate $10,000 to both The Arkansas 4-H Foundation and Arkansas FFA Foundation. We're strongly committed to Arkansas youth and the programs these organizations provide.

Arkansas Hunger Relief Alliance Donation Fort Smith Flood Cleanup Our Fort Smith branch employees delivered cleaning supplies to Sebastian County residents who were impacted by June flooding along the Arkansas River.

Farm Credit made a statewide $5,300 donation to the Arkansas Beef Project through the Arkansas Hunger Relief Alliance. Our funds provide domestic beef to food-insecure Arkansans across the state. In 2018 alone, 120,000 meals were served with high quality beef protein thanks to this organization.

Clarksville FFA Builds Deer Stand

Dardanelle Flood Fest

for Operation Open Season

Russellville employees handed out free popsicles during Flood Fest in Dardanelle in June. The event was the city’s thank you to volunteers who helped with flood recovery efforts.

Clarksville FFA received one of the Farm Credit funded grants to build a deer stand for Operation Open Season, a nonprofit organization that provides hunting opportunities for military veterans. Operation Open Seasons gives the deer stands to interested land owners in exchange for allowing a veteran to hunt.

Arkansas 4-H Demostration Garden Farm Credit of Western Arkansas donated $5,000 to the new demonstration garden at The Vines 4-H Center. The garden is managed by the Pulaski County Master Gardeners and is a hands-on opportunity for 4-H members and visitors to learn about flowers, fruits, vegetables and herbs.

New Signs for Hope Watermelon Festival

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Through our Community Involvement Dollars program, employees are rewarded for volunteer community leadership. Vice President Clay Lance of our Hope branch is the president of the Hope Hempstead Chamber of Commerce and used the donation he qualified for to help purchase new signs for the Hope Watermelon Festival.

Arkansas 4-H O'Rama Prairie Grove Vice President Daniel Keeton with Farm Credit of Western Arkansas awarded $1,000 scholarships to 4-H members Georgia Patterson and Jessica Tanner (not pictured) at the annual Arkansas 4-H O’Rama in Fayetteville.

Gentry High School Lunch Cindy Philpott, Savannah Dickinson and Daniel Keeton (not pictured) cooked 400 hamburgers and 300 hotdogs for the Gentry High School Lunch on the Lawn event.

Dover Back-to-School Bash

Arkansas Junior Swine Series Siloam Springs Vice President Savannah Dickinson used the Community Involvement Dollars she qualified for to sponsor the 2019 Arkansas Junior Swine Series. AJSS is organized to promote youth involvement in the swine industry and to encourage young people to become a responsible showman in and outside of the show ring. Savannah and her husband Todd help put together a jackpot show series through AJSS. Savannah is pictured with the AJSS Overall Crossbred Exhibitor, Carlee Kemp.

Agriculture Day Greenbrier Vice President Josh Dunlap spoke at the Conway Area Youth Leadership Institute as a part of Agriculture Day.

C O M M U N IT Y SC E N E

Our Russellville branch donated $200 to the Dover Back-to-School Bash that provides free school supplies and health screenings to district students. Regional Branch Manager Jim Taylor and Vice President Anna Lester presented the check to Heather Sprinkle and Dover students Lily McGonigal and Arlis Sprinkle.

Heather Ridley-Fleeman Race for Hope Employees Savannah Dickinson, Cindy Philpott and Darla Larson (along with family members) helped with the annual Heather Ridley-Fleeman Race for Hope event that benefits Hope Cancer Resources in NWA.

Internships Offer Valuable Experience Three Western Arkansas interns share highlights of their summer work.

by Ashlyn Ussery, Summer Intern To a college student, internships are everything. It’s an opportunity to meet new people, gain resume quality experience and of, course, we all need a little cash. Farm Credit gave me, along with Baxter Wallis and Brayden Burnett, the honor of representing the Farm Credit brand this summer.

Interns Brayden Burnett, Ashlyn Ussery & Baxter Wallis

Baxter and Brayden are senior agriculture business students. Baxter is from Dover and attends Arkansas Tech University and Brayden, a Winslow native, is studying at the University of Arkansas. I am from North Little Rock and currently a first-year graduate student studying agricultural communications at the University of Arkansas. For each of us, this internship was a major opportunity that has opened our eyes and our hearts a little wider to our love for agriculture.

“While visiting farms this summer, I came across many farmers who had unique ideas for their operations,” said Baxter, who worked in the River Valley.

21 Continued on page 22

“It made me appreciate the fact that Farm Credit is about building long-term relationships,” Brayden finished.

Ashlyn working with Regional Vice President Denise Sweat in Nashville.

He continued that their ideas created opportunities that allowed them to work in a way that maximized their time and money.

One farmer has spent several years engineering machines and structures to make life on the farm run more smoothly. This customer has engineered his own hay ring movers, mineral troughs and cattle rubs for fly control. He took the time to show Baxter how he used the things he had made and explained the impact made on his returns. He also related to Baxter how important the farming community is. For example, he recognized the market for the products he was making and shared his ideas to help others. He also shared his thoughts that agriculturalists are one big family and the importance of always lending a helping hand.

“What started as a simple farm visit, turned into me being amazed at this gentleman’s skills and provided a physical representation of what the farming community is all about,” Baxter said.

As I made my way around the southwest region of the state, I was never quite sure what a farm visit would entail.

Most farmers were interested in not just who I was but where I was from, what college I attended and my future plans. I met a gentleman who, like me, had attended Southern Arkansas University. He shared the path he took after college, the things he learned and what he regrets. He had learned a lot through the years and wanted to encourage me as I finish my ag education, but also to help me avoid some of the mistakes he had made. He was not just generous with wisdom, but also with the fresh vegetables from the garden he and his wife tended. They sent me home with a bag full of goodies.

As Brayden mentioned, this is the Farm Credit difference! It was not each of us who began the trusted relationship with these customers - it was the consistency of the employees and association, and the culture they operate within, that these farmers loved doing business with for so many years.

Baxter, Brayden and I are grateful for this opportunity and want to say a huge thank you to Farm Credit of Western Arkansas employees, as well as customers, for a summer to remember!

Brayden worked at branches in northwest Arkansas.

“I visited a farm to do a chattel inspection and met a man who had farmed all of his life and he shared how he ended up with Farm Credit,” Brayden said.

He’d farmed in northeast Arkansas and used a bank he loved during that time. After many years, the bank closed and he was forced to move his business. He struggled to find a lender he truly saw eye-to-eye with.

Eventually, he found himself in northwest Arkansas where he, once again, wasn’t happy with what local banks had to offer.

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Then, he stepped into a Farm Credit office and the phrase he used to describe it was one that stuck with Brayden all summer. He said, “It felt like home”. Brayden said he had never thought of a loan office being described that way but the more he thought about it, that is the Farm Credit difference.

Baxter joined Chief Appraiser Jim Wiedeman and Vice President Anna Lester at the Dardanelle Flood Fest.

Brayden working with Vice President Daniel Keeton in Prairie Grove.

Brayden at a customer farm in northwest Arkansas.

KRISTI WILLIAMS joined the Farm Credit team in late May as a Regional Financial Services Specialist. She works primarily from the Clarksville branch. She lives in Lamar and has nine years of consumer lending experience. Her husband Patrick is with Farm Bureau in Clarksville and they have three children – Tucker (age 9), Maggie (age 7) and Cooper (age 4).

TYLER WHORTON signed on as a Loan Officer Trainee in Prairie Grove in May. Raised in Lincoln, he and wife Matea and daughters Maebree (age 7) and Basilee (age 2) live on Whorton family land where Tyler and his father Tim have a part-time beef cattle operation.

Prior to joining Farm Credit, Tyler managed his father’s feed store and was a salesman with John Deere.

DUSTIN GRAMMER began his duties as a Regional Field Services Officer in Texarkana on June 3, just a few weeks after earning his ag business degree from Southern Arkansas University. Raised in Genoa, he developed an interest in agriculture while at SAU. You’ll find Dustin in the deer stand, turkey woods or hunting blind in his free time.

HEATHER HALE joined our team in early June as a Financial Services Specialist in Waldron. Raised on a poultry and cattle farm, she lives in Waldron and has 24 years of commercial banking experience.

She and husband Russell have a son Chase (age 17) and her hobbies include deer and turkey hunting.

TERESA MILLS began her Farm Credit career by accepting the newly-created Financial Services Specialist position in Benton in early July. She lives in Benton where she was raised and has 27 years of title company experience. She has a 28-year-old son and enjoys hiking and riding four-wheelers in her free time.

W E ST E RN SC E N E

New Faces

Bentonville branch moving to NEW location on October 1.

Find them at 3600 SW Regional Airport Blvd. Ste. 16 in Bentonville.

Changing Places ROBIN SAYLOR began new duties as a Business Analyst on May 1. She will continue to work out of the Mena branch office where she’s been a Financial Services Specialist for the past six years.

TRACY CRISWELL has taken a new Financial Services Specialist position created to serve the Paris and Ozark branch offices. She’s been with Farm Credit since 2011 and was previously a Regional Financial Services Specialist, traveling between a number of River Valley branches.

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3115 W. 2nd Court Russellville, AR 72801

Enriching rural life.

TM

Let Farm Credit’s industry-leading knowledge, competitive products, and more than 103 years of agricultural and rural financing experience help you.

• Farms of all sizes • Livestock • Country home and home construction • Land

• Recreational land • Timber tracts • Forestry products and processing

LAST CALL

2019 Photo Contest It’s never too early to start planning for our annual photo contest! Contest deadline is October 1.

We’re looking for shots that tell the story of what it’s like to live here in western Arkansas. Contest is open to anyone living in our 41-county Western Arkansas territory.

Two divisions – Adult and Youth (up to age 18), with cash prizes in both categories.

Grand Prize

$500

(best overall photo from both categories) Entry form and complete details at myaglender.com

1st Place $300 2nd Place $200 3rd Place $100

Cash prizes in both Youth & Adult categories.

2018 photo contest entry by Cassie Godwin