Partners - Fall 2013

GreenStone FCS

Fall 2013

Promoting the business success of our customers and the rural community

FALL MARKET OUTLOOK MICHIGAN'S VOICE IN CONGRESS

ENVIRONMENT PERSPECTIVE & CONCERN GREENSTONE’S STORY –CUSTOMER SATISFACTION

MAEAP POISED TO FORGE AHEAD

FARMING

AGAINST

ALL ODDS

GREENSTONE SCHOLARSHIPS

DIRECTORS' PERSPECTIVE FALL 2013

Editor’s

NOTE Fall 2013 Published by:

GreenStone Farm Credit Services

2 Comments from CEO Dave Armstrong Comparing, contrasting and forecasting, while also reflecting on GreenStone directors invaluable contributions.

Conversation at the equipment parts counter went from summer rain yields and family vacations, to fall temperatures and football scores. Yet again, we realize the season is moving ahead before many of us made time to fully appreciate the one before.

That is one more reason why, in this issue of Partners, you will find a selection of articles dedicated to just that—taking the opportunity to acknowledge and relish in the moment, before rushing forward to make plans to do it better next time.

Help us welcome new directors and thank those exiting; celebrate the success of your association and our 96 percent customer satisfaction; recognize the achievements of the youth scholarship winners; acknowledge employee successes and admire customer achievements.

All of this and much more, in this issue of Partners.

13 Feature Article

20 Student Aid

Fall Notes

Now is the time to start thinking about your child's college funding options.

7 Tech Tip

Agricultural economist, Bob Utterback, shares how just a few variables can drastically swing markets.

It takes a fierce commitment to find success in agriculture, and when faced with tough odds, Nick Hirschman drew on that strength and his family to beat cancer.

21 Guest Column

7 Calendar of Events 9 News Update

8 GreenStone's Story

17 Directors' Perspective

Customer satisfaction may be at a high level, but it is four core values that help keep it there.

The EPA has set goals on regulating water quality, but what will that mean for producers and their operations?

Three new board members share first impressions on life as a GreenStone director.

3 Market Outlook

10 GreenStone Scholarships Six hard-working students received GreenStone scholarships. Learn a bit about these young agricultural entrepreneurs.

7 Pause for Applause

9 Candid Comments

11 Employee Fundraisers

19 Legislative Matters Rep. Dan Benishek (R-MI) reports on legislative progress within the House Agricultural Committee.

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12 MAEAP The MAEAP program has seen some success and it is picking up steam.

This newsletter is published quarterly for the customers of GreenStone Farm Credit Services.

Partners, 3515 West Road, East Lansing, MI 48823 • 517-318-2290 • marketing@greenstonefcs.com

COMMENTS

From CEO Dave Armstrong

What a difference a year makes!

At this time last year, fruit producers were still coming to grips with the reality of almost no crop to market due to the worst freeze to hit Michigan’s fruit belt in 100 years.

D

own the road, row crop farmers were speculating that they may have received just enough moisture at the right times to produce average, and in many cases, above average yields with nearly all time record prices due to the impact the largest drought to hit the country in more than 60 years was having on crops nationwide.

As I write this, reports indicate that the apple, cherry, peach, and grape crops all did well and while yields on these particular crops may not be record setting, they were still very good and just what the doctor ordered to put a smile on the face of our fruit producers. Yet, the jury is still out on how well the row crops will do. A wet, cool spring delayed planting in many areas of our territory and with lower than normal temperatures this summer, many are praying for a warm, dry fall to allow crops to mature. Nationally, commodity prices have been very volatile in recent weeks rising and falling with every report of estimated

yields due to weather conditions ranging from too wet in some areas to too dry, and of course the uncertainty around crop maturity before a killing frost this fall. One thing is certain, no one knows the outcome of the 2013 crop until it is harvested and safely in the bin!

Interest Rates— Up, down, or sideways?

Speaking of commodity price volatility, as many of you are aware, intermediate and long term interest rates have increased over 1 percent since the first of May. The yield on the 10 year treasury note increased from 1.66 percent on May 2 to 2.9 percent on August 22 as a result of the Federal Reserve chairman’s comments that the Fed would be “tapering” their purchase of bonds which created market concerns that the long anticipated move to increase rates had arrived. Yet, since those

remarks were made, the U.S. economy continues to struggle. Unemployment is 7.3 percent, several large retailers have reported less than expected earnings in the second quarter, consumer spending has stagnated, and newly built homes dropped 13.4 percent in July with signs that average home prices may likely have reached their peak. Add to this that the economy’s capacity utilization is still under 80 percent indicating that the risk of inflation still remains very low.

So, what does all this mean?

I am going to go out on a Continues on Page 6...

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MARKET OUTLOOK

Market Outlook There is an old marketing saying that I heard when I started in the business which is as true today as when I heard it more than 35 years ago: “Buy the rumor and sell the fact!�

he market has just endured one of the driest and hottest August/September time periods for the Midwest.

Combines are running and we are finding out exactly how much damage there has been to the yields. Is it worse or better than the perceived reality of the market? As I write this, I believe corn could be a little better and soybeans a little worse, but most of the bullish uncertainty has been already factored into the market.

If this were not enough to worry about, the Mideast conflict is causing great uncertainty in regard to energy supplies and its subsequent impact on global economies. At a time when the global economic engines are still sputtering from the 2008 economic meltdown and the central banks are running the printing press at full steam, little wiggle room exists for better than expected demand for the first part of 2014.

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PARTNERS Fall 2013

By: Bob Utterback

MARKET OUTLOOK

CORN October and November are historically associated with very wide basis and seasonal price lows as the crop comes out of the field. This year, however, the market has been far from normal and I suggest historic price patterns may be questioned. At the time of this writing, the December 2013/July 2014 spread is at 25 cents. In my opinion, we can expect it to widen as harvest moves into full steam.

This is the market’s way of giving strong incentive to the producer to store. In my travels around the Midwest this summer, I saw very little evidence to support the assumption that farmers have aggressively sold their 2013 crop. Granted, the August and September rallies may have helped pricing, but I fear producers simply got more bullish and decided to shut the bin doors. Thus, I would not be surprised if at least 60 percent of this year’s corn crop is stored unpriced into next year.

I believe we will see extremely wide basis and low prices in the summer and fall of 2014.

Thus, a historically large amount of corn will be stored unpriced into 2014 in the hope that a major weather event will ignite the market. If 95 million acres are planted and Mother Nature allows yields to move closer to 160, I believe we will see extremely wide basis and low prices in the summer and fall of 2014.

and at the elevator. If corn is moved off the combine, focus on a reownership position during October/November by buying March deep-in-the-money calls. Finally, start developing a market plan that allows one to sell December 2014 between $5.50 and $5.70, but still provides the flexibility to handle whatever Mother Nature throws your way next summer in regards to yield stress.

Marketing Strategy: If anyone has excess inventory to sell, it would be wise to sell any excess corn inventory the first day of harvest rather than once the bins are full at home

‟...a historically large amount of corn will be stored unpriced

into 2014 in the hope that a major weather event will ignite the market.ˮ

The implications are as follows:

1.

2.

3.

4.

Don’t be surprised to see a seasonal weak basis in the Eastern corn belt, especially since this is the region where good yield exists. asis, more than flat price, will rebound nicely as we B move into the December/January time period and bin doors remain firmly shut. roducers should lock in the carry between December P 2013 and July 2014 at 30 cents or better; but I fear they will remain unpriced and accept all spread, and storage cost risk.

I still contend that U.S. yield will grow in subsequent reports and the overall carryover will remain somewhere between 1.6 and 1.7 billion. This is tighter than we thought a few months ago, but not tight enough to ignite the market (flat price) by itself. Subsequently, I believe the odds are very high we will see a range bound market for lead-month corn well into the spring of 2014.

Thus, a historically large amount of corn will be stored unpriced into 2014 in the hope that a major weather event will ignite the market. If 95 million acres are planted and Mother Nature allows yield to move closer to 160,

SOYBEANS Soybeans were on fire in August and September because of late season dry weather and its expected bullish impact on yields. We are now seeing the actual damage, but most of the surprise of the reduced yields is behind us. The problem is South American producers have been given tremendous economic stimulation to increase soybean acres and, frankly, I do not think they are going to disappoint us. I assume U.S. soybean acres will go up next year. I believe this all suggests the tightest time period for supply and subsequent high prices is now! I strongly suggest producers fight the temptation to put soybeans in the bin and hope for a 2014 weather event.

If that is their mind set, focus on a more limited way of holding positions such as a deep-in-the-money call.

My primary focus in working with Midwest producers is to get them to put a floor under their expected 2014 inventory that still provides flexibility to react to upside price events. The tool that best fits this is not a forward cash sale, nor being short futures. Buy deep-in-themoney puts instead. To improve the position, focus on

Fall 2013

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MARKET OUTLOOK

‟With lower feed values, trying to pay for the time value cost by selling nearby deep-out-of-themoney puts. The objective is to have much of the benefit of cash or short futures positions, with the flexibility to improve the net selling price if a weather event should occur and at the same time control one’s emotions in what we know will be a very difficult and turbulent market action.

WHEAT This complex still lacks the profitability of the corn and soybean complexes unless it is combined with a double-drop situation. Subsequently, I would only anticipate a major increase in planted acres if we see a significant drop in corn prices.

Remember, winter seeding is over so we will soon have a solid handle on

we have to assume inventory numbers are going to eventually grow in hogs, chickens and to some degree in beef cattle.

ˮ

Should one start hedging the deferred contract months? I feel I have to suggest the hot, dry conditions of August and September hurt hog conception rates, as well as the rate of gain, and this should help to tighten inventory. When this is combined with the expectation that producers will start holding back some inventory for herd expansion, one has to expect a solid foundation for a seasonal recovery into the December time period.

Subsequently, if one has not forward sold, I do not think October/ November is the time to implement a major hedge protection plan. It is the time to focus on getting feed needs Modest seasonal price recovery but locked up and prepare to be a pressure on July 2014 wheat prices if strong seller of any solid price big corn inventory is held forward and gain as we move into the first no weather event occurs. Subsequently quarter of 2014. My concern, producers must use overbought however, is long-term. With situations to get a floor under the lower feed values, we have to market by no later than early March. assume inventory numbers are going to eventually grow in acres. In my opinion, it will be up a hogs, chickens and to some degree little, but nothing major. Seasonally, in beef cattle. If consumer demand we should anticipate some strength in remains flat due to concerns about wheat between December and March slow economic growth, the ability to in regard to the lead-month futures; retest 2012 highs in deferred contracts unfortunately, with big supplies of should not be expected. The plan corn being held, it will be difficult for should be to prepare to use deferred wheat to rally unless we experience contracts as we move into the first some type of major yield reduction quarter of 2014 on any solid bullish event by a major global producer that price bounce close to this year’s highs. is not on the radar at this time.

In summary, my theme for all CATTLE and HOGS producers is for them to not focus The cattle and hog markets have been strictly on flat price and think about experiencing the positive impact of the profit margin. I believe we are lower corn values, but have been going to see both of them shrink neutralized by higher soybean meal throughout 2014 and 2015 unless values. As I write this outlook, hogs there is a major weather event. have slipped from the around $15 off It only helps in the short run, but its highs and cattle have slipped about makes it even harder to recover $10 off its highs. demand long-term.

I mplications :

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PARTNERS Fall 2013

This material has been prepared by a sales or trading employee or agent of Utterback Marketing Services, Inc. and is, or is in the nature of a solicitation. This material is not a research report prepared by Utterback Marketing Services, Inc. By accepting this communication, you agree that you are an experienced user of the futures markets, capable of making independent trading decisions, and agree that you are not, and will not, rely solely on this communication in making trading decisions. Distribution in some jurisdictions may be prohibited or restricted by law. Persons in possession of this communication indirectly should inform themselves about and observe any such prohibition or restrictions. To the extent that you have received this communication indirectly and solicitations are prohibited in your jurisdiction without registration, the market commentary in this communication should not be considered a solicitation. The risk of loss in trading futures and/or options is substantial and each investor and/or trader must consider whether this is a suitable investment. Past performance, whether actual or indicated by simulated historical tests of strategies, is not indicative of future results.

Trading advice is based on information taken from trades and statistical services and other sources that Utterback Marketing Services, Inc. believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades.

ABOUT THE AUTHOR Bob Utterback is the Farm Journal Economist and President of Utterback Marketing in New Richmond, IN. Call Bob for strategy updates at 877-898-4324. Email comments on Outlook to utterback@utterbackmarketing.com. he opinions stated herein are not necessarily T those of GreenStone Farm Credit Services.

CEO COMMENTS

limb and predict that rates may very well dip back down if the Fed starts to reconsider their tapering strategy in light of less than optimal economic indicators this fall. While many believe continued rising rates are a foregone conclusion, there are a number of factors that could change the current trajectory very rapidly including any kind of U.S. military action in the Middle East. Time will tell however, the world economy continues to recover from the 2008-2009 banking crisis and is still not “out of the woods.”

Where are land values headed you asked?

Given the general uncertainty around interest rates and prospects for lower commodity prices this year, land values in our territory have likely plateaued according to our benchmark studies completed in July and a Chicago Federal Reserve Bank farm land survey.

Land value increases, measured from July 1, 2012 to June 30, 2013, in our benchmark farm study ranged from a low of 6.7 percent to a high of 21.8 percent. Some observations to note include: • The smallest percentage value increase was in the south-central area of Michigan, which was arguably the area of our territory hardest hit by the 2012 drought.

• Largest increases, 20-21 percent, were in the Michigan Thumb and Saginaw Valley regions, where high yields and high prices were both realized in 2012.

• The Michigan dairy benchmark increased by 12 percent, as values continue to recover from the losses suffered in the 2008-2010 period.

• Northeast Wisconsin land value increases ranged from 8.5 to 17.7 percent, with the largest percentage increase in western northeast Wisconsin (Shawano County).

• The recreational land benchmark increased by 3.7 percent, the first value increase we have seen in this benchmark since 2006.

Dave was first elected to the board of Farm Credit Services of East Central Michigan 15 years ago and was one of my “new bosses” when I served as the CEO of that predecessor association. Dave was among the directors of that time from the four founding associations of GreenStone who believed in what we could do for our members and the marketplace by merging those organizations into a “large” $1.3 billion association.

Thirteen years later, GreenStone is the sixth largest association in the national Farm Credit System with more than $6.0 billion in assets whose territory spans two states while maintaining its

These results are also supported by the Chicago Federal Reserve Bank’s recent survey of farm land value changes as well. The 7th District, which includes Illinois, Indiana, Iowa, Michigan, and Wisconsin, indicated that values were up 17 percent overall (Michigan was 18 percent and Wisconsin 7 percent) from July 1, 2012 to July 1, 2013, but had not increased at all from April 1, 2013 to July 1, 2013. (Michigan had actually declined 7 percent and Wisconsin was only up 1 percent during this same time " ...land values frame).

in our territory have likely plateaued according to our benchmark studies completed in July and a Chicago Federal Reserve Bank farm land survey."

Speaking with our chief appraiser, Jim Garvey, he has observed that sales have started to decline in our territory as sellers expectations of values enter a period of realigning with buyers outlook for the future in terms of debt servicing requirements and overall economic returns. Land value trends over the past several years are not sustainable and will hopefully selfcorrect on a measured basis without the rapid and deep correction that happened in the 1980s. Only time will tell!

Director Recognition GreenStone has been blessed to have great leaders serve on not only its board, but also the boards of its predecessor associations. Dave McConnachie and Lynn Gould are two of these leaders I would like to recognize for their years of service to GreenStone as they concluded their board terms in coordination with the elections this summer.

focus on member needs as evidenced by this year’s customer satisfaction score of 96 percent satisfied or very satisfied. Dave’s vision and that of the other founding board members is a clear example of the kind of leadership you, our members, have selected to lead this organization over the years and is a key reason for its success.

I want to thank Dave for his service to GreenStone and the support he has given me over the years. Please join me in wishing him the best in his future endeavors.

Lynn Gould joined GreenStone from voting region one in 2004. Lynn served on GreenStone’s Legislative/ Public Policy Committee where he was a champion of getting GreenStone engaged in amplifying the voice of Michigan and Wisconsin agriculture to federal and state legislators. Lynn also served on the committee to plan and Fall 2013

PARTNERS 6

FALL NOTES

oversee the construction of our new corporate office which was completed in 2010. As chair of the committee, Lynn led the board through the project while facing a great deal of uncertainty as a result of the great recession which hit in late 2008 just as the closing on the site for the new office was to take place. Lynn and his fellow committee members saw this as an opportunity for more favorable bids to manage the overall project's costs and ultimately saved GreenStone more than 40 percent from the original cost projections.

I also appreciated Lynn’s support of management and his strong belief in, and dedication to, the Farm Credit System.

Again, please join me in wishing Lynn the very best in retirement and thanking him for his years of service to GreenStone.

Final Thoughts In closing, I encourage you to read this issue of Partners from front to back. I believe you will agree that it is full of information about not just your association and its people, but even more importantly stories about your fellow members, markets, environmental issues, legislative activities, product updates, and much more. GreenStone is YOUR organization and we want to make sure you are aware of the many activities we are engaged in and how we strive to exceed your expectations as your financial services provider of choice.

Best wishes for another successful and safe harvest season this year! As always, thank you for your business. Please feel free to contact me directly at dave.armstrong@greenstonefcs.com or 517-318-4105 if I can ever be of assistance.

TECH TIP

Keeping Your Internet Browser Current is Important to Your Business Technology is constantly changing.

New Internet capabilities that provide increased video, audio, special effects and interactivity are becoming available.

But the browser you are using could be limiting that potential, plus causing you other issues. Older browsers are more likely to crash, run slower, and are

Pause for Applause Congratulations to Sara Trattles (financial services officer, Schoolcraft) and Melissa Humphrey (senior financial services officer, St. Johns), on their nominations as finalists for the Michigan Farm Bureau Excellence in Agriculture award!

Congratulations to everyone involved!

Have an acknowledgement to share? Submit your "Pause for Applause" to: marketing@greenstonefcs.com

more vulnerable to security issues. Stay current by upgrading your browser to the latest version for free. If you have questions on what browser version you are using or how to upgrade, a good site to go to for help is http://whatbrowser.org

CALENDAR OF EVENTS OCTOBER [1-5] World Dairy Expo Alliant Energy Center, Madison, WI

NOVEMBER [2] 38th Annual AutumnFest MSU Pavilion, East Lansing, MI [28-29] GreenStone Offices Closed for Thanksgiving

DECEMBER [10-12] G reat Lakes Fruit, Vegetable and Farm Market Expo DeVos Place Convention Center, Grand Rapids, MI [24-25] GreenStone Offices Closed for Holiday

Dave Armstrong 7

PARTNERS Fall 2013

GREENSTONE'S STORY

Valuing Customer Satisfaction You may have seen them hanging in our lobby, we have printed them in our publications, sometimes they are seen displayed on our desk, but what are they?

GreenStone’s Core Four Values are not just a word mark nor a logo. They are truly the simple things we work toward each and every day—ten simple words broken into four phrases that sum up the essence of our vision, our mission, our focus… our values:

Though there are many ways to gauge our success at achieving these values, the annual customer satisfaction survey is one sure way to hear from you, our members, on how we are doing! We believe the survey does not necessarily answer the question for any one of these values, but rather that all four play into the satisfaction of our membership. We know we can not deliver quality without putting the customer first. And if we are not getting involved, then we may not be doing the right thing. So when you, our members, tell us you are an outstanding 96 percent satisfied with our service, we are pleased to know we are focusing in the right areas. In fact, seven of our branches earned a perfect 100 percent satisfaction rate.

Your comments also told us…good people, timely response, valuable to your operation, honest, enjoy the patronage dividends, knowledgeable, understands agricultural financing needs, good rates, pleasant and accommodating, understand the agricultural language and industry, there when you need them, first lender to pay dividends back, support agricultural incentives, support your business, and sense of partnership.

When asked about the satisfaction of several different specific performance levels, responses indicated you found the most satisfaction with the performance of support staff and loan officers, the financial soundness of the cooperative, and the value GreenStone has for its customers.

With all of that being said, this is not a business just about the past and present. The future is equally important, and therefore it is rewarding to hear 95 percent of customers say they would likely return to GreenStone for their future lending needs.

But we have not hung our hat on those numbers and comments and walked away. We know there is room to improve, and we also know that it takes focus and fortitude to maintain this level of satisfaction. One-onone interaction, proactive communications, process refinement, and engagement continue to be a center of force for each of us at GreenStone. And the Core Four Values, well do not be surprised the next time you see them around, because they have found a home at GreenStone and they will not be leaving anytime soon.

CUSTOMER SATISFACTION RESULTS 2009-2013 100 90

94%

94%

95%

97%

96%

80 70 60 50

2009 2010 2011 2012 2013

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FALL NOTES

NEWS UPDATE FALL 2013 GreenStone Opens Office in Little Chute GreenStone's commitment to agriculture remains strong in northeast Wisconsin. The association has opened a new branch office in Little Chute, Wisconsin, located at 340 Patriot Drive.

“The Little Chute GreenStone location allows us to combine the staff members formerly in the Appleton and De Pere branch offices under one roof to better serve the needs of our customers,” said Carl Treml, regional vice president of sales and customer relations. “With a complete team of experts in this new facility, we are able to meet the lending and financial services needs of all of our customers, while providing them with exceptional service and added convenience.”

More than 30 employees will work from the Little Chute branch. The full-service location will feature experts in agricultural lending, crop insurance and tax and accounting services, as well as country home financing, vacant land and recreational land loans. The office features more than 18,000 square feet, and can easily accommodate future expansion as business needs change.

Along with Little Chute, GreenStone has four other branch offices to serve the needs of customers throughout northeast Wisconsin. Other locations include: Clintonville, Coleman, Manitowoc and Sturgeon Bay.

Put the GreenStone Credit Card to Work!

You can learn more about each of these cards by visiting our website, www. greenstonefcs.com, or ask for a brochure the next time you are at your local branch!

When you are looking for a personal or a commercial credit card, look no further than your cooperative!

You may be surprised to learn that GreenStone offers VISA® credit cards1 to meet the needs of nearly anyone. From cash back, to a variety of rewards, travel 1 Cards are issued by First Bankcard, a privileges, or low division of First National Bank of Omaha. rates...we have it all.

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PARTNERS Fall 2013

GreenStone Leader Armstrong Receives Diamond Award from Michigan Society of Association Executives GreenStone's President and CEO, Dave Armstrong, has been named a recipient of a 2013 Diamond Award by the Michigan Society of Association Executives (MSAE).

Dave was named this year’s Strategic Association Leader after being nominated by a fellow MSAE member. He received the award based on his service to GreenStone and MSAE, as well as to the agriculture industry as a whole.

“Dave is incredibly deserving of this prestigious honor,” said Scott Roggenbuck, chairman of GreenStone’s board of directors. “Dave’s thoughtful leadership sets the tone for GreenStone, and is evident in the exceptional customer satisfaction ratings the organization has received during his tenure.

Additionally, he is a wellrespected member of the agriculture industry and is often sought out to provide analysis and insight on issues facing the industry.”

Dave was honored at the 12th Annual Diamond Awards ceremony held in Rochester, Michigan.

Candid Comments...

GreenStone FCS, " Just want to say thanks to Kimberly Cool, from GreenStone in Cadillac, Michigan and her associates for helping me with my purchase of my little dream home near Lake City, Michigan. Kimberly was always in contact with me (very important) and answered all my questions – I had many! The whole process went extremely smooth and pleasant. … Again, thanks to Kimberly and all at GreenStone FCS!” — Jeff Renshaw Wexford, MI GreenStone FCS, "The Corunna, Michigan branch is awesome! I have never liked people that I owed money to until I took a mortgage with GreenStone!”

— Matthew Riley Owosso, MI

GREENSTONE SCHOLARSHIPS

GreenStone Scholarships Summer vacations and family get-togethers have been filed in your memory bank, leaves are starting to change on the trees and harvest is underway. It can only mean one thing—school is back in session. GreenStone is happy to help six incoming college freshmen continue their agricultural education at Michigan State University (MSU) and the University of Wisconsin—Madison (UW).

[A] RICHARD DUBKE

[C] HUNTER HRABAL

Son of Randy and Johanna Dubke

Son of Kurt and Cynthia Hrabal

Attending: Michigan State University

Attending: Michigan State University

Majoring in: Agriculture Technical Industries

Majoring in: Agribusiness Management

Dream Job: Product development with Pioneer Seeds

Dream Job: Farming with my dad and grandpa

He is most excited about college because: “To meet new people and learn new things.”

He is most excited about college because: “I get to meet new people.”

[D] MARIELLE KOUASSI

A

C

E

B

D

F

[E] EMILY MIDDLETON

[F] KELLY WILFERT

Daughter of David and Heather Middleton

Daughter of Dave and Terri Wilfert

Attending: Michigan State University

Attending: University of Wisconsin Majoring in: Agriculture and Applied Economics Dream Job: United States Secretary of Agriculture

[B] KYLE FRANCISCO

Daughter of Yao and Jennifer Kouassi

Son of Neal and Tammy Francisco

Attending: Michigan State University

Attending: Michigan State University

Majoring in: Food Science

Majoring in: Agriculture Education

Dream Job: Researcher for a large food company and food safety specialist

Dream Job: Educating youth about agriculture and owning a beef cattle herd

She is most excited about college because: “I want to strengthen my knowledge about environmental issues, food safety, and the chemistry and biology behind food to make the world an easier place to live in.”

She is most excited about college because: “I get to further my education in agriculture and go to MSU football games!”

Majoring in: Agricultural Technical Industries Dream Job: Crop farming thousands of acres He is most excited about college because: “I get to enjoy my independence, meet new friends and prepare for a career in agriculture.”

She is most excited about college because: “It’s a new opportunity to make a difference and I am excited to experience the atmosphere of Madison.”

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FALL NOTES

GreenStone Engages Lawmakers GreenStone recently met with two lawmakers and thanked them for their commitment to agriculture.

GreenStone hosted a reception to benefit Sen. Mark Pryor (R-AR) (far right), chairman of the Senate Appropriations Subcommittee on Agriculture, Rural Development, Food and Drug Administration, and Related Agencies, and presented him with a check from the Farm Credit PAC.

Members of GreenStone's Schoolcraft branch presented U.S. Representative Fred Upton (R-MI) (center of front row) with a check from the Farm Credit PAC. Thanks for being an advocate for agriculture Rep. Upton!

2013 Employee Fundraisers GreenStone and our employees are committed to supporting the individuals who live and work in the communities we serve.

Our cooperative often coordinates employee fundraisers with various organizations who share in the vision of serving our local communities. This is one reason why you may find our staff wearing jeans to have a bit of fun and enjoy a more casual Friday.

In fact, GreenStone employees are currently participating in a fundraiser to benefit the Michigan Harvest Gathering and Feeding America of Eastern Wisconsin. Both of these organizations help ensure individuals who have fallen on hard times have a resource for food. You can learn more

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PARTNERS Fall 2013

about the Michigan Harvest Gathering at http://bit.ly/19Sy9WV or Feeding America of Eastern Wisconsin at www.feedingamericawi.org.

Additionally, GreenStone employees recently participated in a fundraiser

to benefit the Michigan Livestock Expo and the Gillett and LuxemburgCasco FFA Chapters in Wisconsin.

In total, GreenStone employees contributed more than $6,000 to these aforementioned organizations.

Donations made to the Michigan Livestock Expo enabled the employees to participate in the purchase of several animals during the Expo's annual Sale-abration!

GreenStone's employee donations helped purchase the following animals: • Showcase Market Beef exhibited by Amber Pickard of Hastings • Showcase Market Hog exhibited by Brad Chapman of South Rockwood • Showcase Market Lamb exhibited by Jay Sweet of Sturgis As a company, GreenStone participated in the purchase of the following animals: • Grand Champion Goat exhibited by Reanna Sloan of Quincy • Showcase Market Beef exhibited by Amber Pickard of Hastings • Showcase Market Hog exhibited by Karley Nevins of Homer • Showcase Market Lamb exhibited by Jay Sweet of Sturgis • Showcase Market Lamb exhibited by Jenna Bradley of Cassopolis

MAEAP UPDATE

MAEAP PROGRAM POISED TO FORGE AHEAD The Michigan Agriculture Environmental Assurance Program (MAEAP) is continuing to make great strides towards farm verifications in 2013, and is looking forward to what is ahead in 2014.

To date, the program has nearly 1,700 environmental verifications under its belt. Working towards Governor Rick Snyder’s goal of 5,000 verifications by 2015 may seem like a daunting task, but one that the program feels it can manage with more than 10,000 farms starting the process.

The program splits the verifications into three different systems based on the operation being verified: Farmstead, Cropping, and Livestock. Farms that receive verification must become re-verified after three years to make sure they are keeping up with the environmental standards.

Looking at the numbers, MAEAP is more than a sensible choice not only for yourself and your farm, but for your neighbors and community. Each year, the erosion-reducing aspects of MAEAP verification have kept more than 142,000

tons of farming soil where it belongs, in the farm field. That is equal to 42,225—10 yard dump trucks of soil not reaching streams and lakes every year.

Annual Phosphorus reduction through MAEAP is 260,000 pounds.

With signs installed after every verification, farmers are eager to let the public know what they are up to. The farm is not the only place you will see the MAEAP logo though. Recently, more farmers are taking their MAEAP signs and materials to farm markets and other local events to show they have taken the extra step in becoming verified.

MAEAP works with farmers, Michigan Department of Agriculture and Rural Development, Michigan Farm Bureau, commodity organizations, universities, conservation districts, conservation and environmental groups and state and federal agencies. Local technical staff help farmers get the ball rolling, and are by the farmers side during the entire process. To find a local technician near you, please visit www.maeap.org.

" The farm is not the only place you will see the MAEAP logo though.

Recently, more farmers are taking their MAEAP signs and materials to farm markets and other local events to show they have taken the extra step in becoming verified."

MAEAP is also making a strong social media presence. Working with local conservation districts to provide as much information as possible, the MAEAP Facebook and YouTube accounts are gaining a bigger following every day. Featuring articles, videos, and pictures from all across the state it is getting the attention of many. New “In the Words of a Farmer” videos are being uploaded every month that give an inside look on MAEAP farms as well as published articles and pictures. The MAEAP social media pages can be found at www.facebook.com/mimaeap and www.youtube.com/maeapvideos. For more information about MAEAP, visit the program’s website at www.maeap.org.

Fall 2013

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YBSF FEATURE

FARMING AGAINST ALL ODDS

By Jennifer Vincent Kiel

I

f you were to ask Nick Hirschman what he wanted to be when he grew up, he would have a quick and easy answer.

He has always wanted to be a farmer. However, what was sadly uncertain was whether or not he would grow up.

When most teenage boys were fighting for the win on the 30-yard line, fighting for a passing grade or the affection of the young ladies, Nick was fighting for his life after being diagnosed with soft tissue sarcoma at the age of 14.

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YBSF FEATURE

A bruise on his thigh that was repetitively injured in wrestling and football had mutated into cancer – a rare kind at that. He is only the 12th person in the world known to have his particular soft tissue sarcoma. “I was told pieces of the tumor were shipped to scientists and researchers around the world,” he says.

The gumball sized tumor was removed by taking a softball sized piece of tissue. It was followed with 18 months of six rounds of chemotherapy in daily trips to Ann Arbor and 120 straight days of radiation. Nick says it was difficult to go from a healthy 155 pounds to 98 pounds in two weeks.

“It was miserable, but I’m very thankful for the technologies we have in my generation.”

Today, at the age of 27, Nick’s hair has never been the same, but otherwise there’s no sign of the cancer, and he has directed his energy into helping his parents, Matt and Becky, run the family farm just outside of Ithaca, Michigan in Gratiot County. It would not be the end of his health struggles, rather a welcomed reprieve.

Forward Thinking Nick never planned on doing anything but farming, but as a lot of farmers can attest, absorbing the next generation has to be carefully calculated. “I worked at the feed mill in high school and that’s also when I started doing some trucking on my own.”

He worked for a year and then bought his own truck and trailer at age 19. “It was good to be independent; it was the first money I borrowed with the intent of making money with it.”

The growth of the farm, now 2,400 acres, allowed for him to join the farm full time.

“My focus was on building the farm,” Nick says. “I’d seen a lot of elevators and knew how grain moved. In college I learned about marketing and I had a vision that we needed a grain set up.”

At that time, the farm had a mere 45,000 bushels of storage. “It was a real challenge to get it in and out.”

Through his travels, Nick had seen more than 250 different farms and elevators. “I saw things I liked and more things that I didn’t like. I wanted something that was set up for moving grain well in and out and not just focused on corn coming in.”

New Opportunities The plans were drawn up for a 500,000 bushel storage operation and was tentatively sited behind the current farm, although the family was not overly keen on the closeness to the home.

“We wanted it close, but not too close,” Nick says.

As the plans progressed, a 135-acre parcel across the street became available. Nick was a first time borrower from GreenStone. “Prior, our local bank was adequate and we

didn’t know at that point in ‟ Itime if I was going to see the crops we had in the ground harvested, or if I was going to be in a bed somewhere.

At that time, he was also attending Michigan State University’s (MSU) agricultural technology program. For two years in a row, (2006-2007), he put more than 200,000 miles on the truck.

“I’d be done at school on Thursday, come home on the weekend, and I’d be hauling to Chicago and other places,” he says. “By going to work somewhere other than the farm, I saw how other things worked and how product moved. It was very beneficial for me.”

While at MSU, Hirschman switched to lifelong student status, which allowed him to continue his education, but not necessarily follow the curriculum for a certificate. “I took the classes that I thought I could really benefit from,” he explains. “One semester I was with grad students in a marketing class. I also took a computer class.”

Nick was finished with college in 2007, just as the farm was gaining acreage as other farmers in the area retired.

ˮ

mostly stuck with them out of loyalty,” he says. “When I walked into the GreenStone office at age 22, I think he was expecting me to pitch him a new combine or something.

Instead, I asked for $2.5 million to build a grain setup,” Nick says with a chuckle.

With his uncle, Jim McLachlan, taking a second on the property, Nick bought the property, formed Hirschman Grain LLC, and started construction.

“One of things I really like about grain set up is the electronic load out. I can be standing inside with the heater or air conditioner running and watching everything fill from a sealed building.”

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YBSF FEATURE

Nick’s GreenStone Financial Services Officer, Dave Carpenter, respects his ideas and energy. “The new grain facility really added to the quality of the farm operation itself, which is nicely done and extremely organized,” he says. “Nick is a bright young man —a real go-getter. He’s dedicated to improving farming in his operation, as well as the county.”

In 2012, Nick went back to GreenStone for financing on a 114acre parcel of ground behind the grain elevator. “GreenStone then financed the whole 249 acres, which allowed me to buy out my uncle,” Nick explains. “It’s kind of a running joke with Dave. He says he’s still waiting for me to come in sometime with an easy one… like an equipment purchase.”

and GreenStone backs us with a commodity loan. This gives us flexibility in working with end users.”

Today, Nick and his parents farm 4,800 acres of corn, soybeans and wheat. Do they want to expand? Nick says yes, but only if it makes sense.

“My pride and joy is in this farm, and we want to grow it, but not by trying to take ground from other growers,” he says. “We will always strive to manage our risk. For right now, 4,800 acres is enough.”

However, just as quickly as that was said, Nick adds that he does have a project in the works he hopes will benefit all growers in the area. “We are looking at purchasing land with rail siding,” he says. “It would help growers and retailers with access to inputs when they are needed.”

Nick owns 50 percent of Hirschman Grain LCC with the other 50 percent owned by his parents.

He already has his fertilizer license, but, “we don’t store it. I just move it for our farm and others,” he explains.

This summer he obtained his grain dealers license and has started buying grain from other growers.

“It’s running more like an elevator

His newest project is the first big ambition since the grain operation because, even though he had beat

cancer, the lingering effects on his body began to take a toll.

Back in the Ring While it was expected, it wasn’t welcomed – Nick found himself in another battle for his life a year ago.

When he was receiving chemotherapy, he was told it would be really tough on his kidneys and to expect some kind of transplant or dialysis within three years. “Well, I went 12 years before my health went,” he says. “My kidneys just shut right down. I was on the bathroom floor sprawled out hoping I would wake up tomorrow. It brought back a lot of memories from the cancer.”

Last July he started dialysis, while trying to find a kidney donor. “It was hard to keep the farm going and leave every other day for four hours of dialysis,” he says.

He then started dialysis every night at home. “I didn’t know at that point in time if I was going to see the crops we had in the ground harvested, or if I was going to be in a bed somewhere,” he adds.

STRAIGHT TALK

Q:

hen you were eight, what did you want W to be when you grew up?

Q: Who do you look up to; who is your mentor?

Dennis: “A farmer."

Dennis: “ My dad.”

Q: When did you first realize that you wanted to farm for a living?

Dennis: “ I’ve always wanted to be a farmer. When I was trucking, it was something to do until the timing was right for me to join the farm. It also allowed me to build up some capital.”

Q: What is the biggest challenge for young, beginning, or small farmers today?

Dennis: " Capital that’s needed in order to buy ground and compete with lifetime farmers."

Q: What advice do you have for young, beginning, or small farmers starting out?

Dennis: " Listen to those who have been there and done that. Don’t be narrow-minded, be flexible."

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YBSF FEATURE

Nick made it through last year’s harvest with few disruptions, but the stress on his body and quality of life were diminishing. He had been on the transplant list for several years and moved up after starting dialysis, “but that’s a long list,” he says.

None of his family members were matches. His sister, Megan, distraught over not being able to help physically, reached out to social media and posted it on Facebook. “U of M called and said they didn’t know what was going on, but they received 135 calls for testing packets,” Nick says.

Turns out, there was a match nearby —closer than Nick had ever dreamed.

Nick’s best friend and fellow farmer, Dennis Stipcak, who was very active in helping with the grain setup, was a match.

“Dennis is my go-to-guy for all projects, and we bounce things back and forth,” Nick says. “It put me in one of the hardest positions to be in.

As much as I hated to ask anybody, especially a friend of mine that I’d like an organ, it was harder to try and live with this and depend on so many other people to help me. I didn’t want to see other people have to finish all the things I started.”

Nick and Dennis went forward with the transplant, Jan. 24, 2013. “The surgery was a tough one. It just puts you down. Every day I think about what he endured for me. But, we have a lot of the same characteristics – if something’s broke, we fix it and move on. That’s the way we went into it. He told me many times, you ain’t no good to me dead.”

Dennis says, “When you are friends with someone and they need you, that’s what you do. I had a good used part and he needed it. Surgery was tough, but I’d do it again.”

Most of February was couch time for both as they recovered. Unsure if they would be ready for spring planting,

Nick Hirschman, 27, was a driving force in establishing this grain facility. He farms with his parents Becky and Matt in Ithaca. Farming is all Nick every wanted to do. He never takes a day for granted after battling cancer as a teenager, and later required a kidney transplant.

they started to think about lining up help. However, a month later, both were doing much better. “I felt as good as I did before I had cancer,” Nick says. “Everything took well and they tapered off the anti-rejection drugs faster than anticipated. Everything is working as it should and Dennis, being in good shape before the surgery, recovered well also.”

Hirschman Farms LLC was not at the point to comfortably take on Nick full time after high school. Instead, he went to college and started working for an elevator driving truck. He took his savings and bought his own truck and trailer and built a successful trucking company. When the timing was right, Nick joined the farm operation.

Nick calls it a life experience.

“In no time in life is a health problem a good thing, but having gone through this, it makes things run easier in my life now. I really don’t

get too worried about minor or even major break downs or weather scares or any of that stuff because as long as you have your health, those issues are really not a problem.”

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DIRECTORS' PERSPECTIVE

DIRECTORS' PERSPECTIVE GreenStone recently welcomed three new members to the association’s board of directors. As an introduction to our membership, we asked them each three questions: 1) Provide an overview of your farm operation.

2) Share why you decided to serve your cooperative as a board member.

What do you hope to bring to the association?

3) Having had some time to digest GreenStone from a board perspective, what has been your biggest surprise?

Matthew Berge Background: Our family dairy farm is located in eastern Wisconsin and currently consists of myself and my father (Lorin) as managing partners, along with my wife (Jennifer), our two children (Caroline and Otis), and my mother (Linda). We currently have 900 cows and crop 800 acres of land. I am a graduate of the University of Wisconsin with a degree in agricultural engineering, and am currently working towards Master’s Degrees in agricultural economics and business administration.

Interest: One of the key components to a successful cooperative, regardless of its line of business, is member involvement. As someone who is in the middle of my career, I feel it is now my time to become involved to help "carry the torch." Our farm has worked with the Farm Credit System for many years, and joined GreenStone when the areas merged in 2003. I feel I can bring a good perspective to the board, balancing the strength of the organization's past with the needs of the members in the future.

Surprise: I think the one thing that has stood out to me after having an opportunity to meet and interact with several members of the staff is the level of pride and satisfaction that is on display. They do not see their job as just a "corporate office job," but are truly proud to work in agriculture, and relish their role in producing food, fiber, and fuel for the world.

" I feel I can bring a good perspective to the board, balancing the strength of the organization's past with the needs of the members in the future."

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FR

DIRECTORS' PERSPECTIVE

Thomas Durand

Ronald Lucas

Background: I have been a lifelong farmer from Sanilac County in the thumb of Michigan. I raise sugar beets, corn, soybeans, and edible beans on 1,200 acres

Background: I have dairy farmed my whole life on the same farm; first with my parents, and now with my wife and sons.

We farm 1,000 acres growing corn and alfalfa hay for our 250 cow

Interest: Having been a stockholder for more than 20 years, my experience with GreenStone has always been very positive. I have served on numerous boards throughout my farming career, and I have also always had an interest in finance and business. These factors motivated me to run for the board of directors. I feel my past board experience working with farmers, as well as people from all walks of life, my strong interest in finance, along with my experience in running a successful farming operation will be assets I will bring to the board.

dairy herd.

Interest: My interest in finance brought me to serve my financial cooperative.

I would like to represent smaller member’s needs along with the needs of the large members, both having the ability to complement each other’s needs.

Surprise: My biggest surprise in the short time I've been on the board would be how diversified GreenStone is in their investments.

That diversification brings value to its member stockholders.

Surprise: My biggest surprise is the diversity of the cooperative. GreenStone is able to take a bad situation and make good of it, turning the situation profitable. The role politics and legislative actions play in the operations of financial institutions was also surprising.

" I would like to represent smaller member’s needs along with the needs of the large members..."

RESH PERSPECTIVE

Fall 2013

PARTNERS 18

LEGISLATIVE MATTERS

Ensuring Michigan’s Farmers Have A Voice in Congress By: Rep. Dan Benishek M.D. (MI-01) Left: Rep. Benishek serves as a witness during a signing ceremony as Taiwan committed to purchase several billion dollars worth of U.S. soybeans, corn, and wheat over the next two years, much from Michigan

to be named as Michigan’s only congressman on the House Committee on Agriculture.

GreenStone regularly communicates with the Congressional delegation from the territory it serves to bring forward the Farm Credit System messages important to the system and its members. Rep. Benishek, from Michigan's First Congressional District covering the entire Upper Peninsula along with the northern Lower Peninsula, has become a friend of Michigan agriculture while serving on the House Committee on Agriculture. Rep. Benishek offers the below article to share his perspective especially with our GreenStone members.

Those of us from Northern Michigan know just how important farming and agriculture are to this region. Our farmers and their families work hard each and every day to provide quality products for the tables of the entire world.

They are a cornerstone of Michigan’s economy and provide many jobs in our region. That is why I have been working to ensure that northern Michigan’s farmers and their families have their voices heard in Congress.

I have been a doctor for the past thirty years, not a farmer.

So, I have spent the last three years visiting farmers, talking with agribusiness owners, and learning more about their issues and concerns. Each time I visit with farmers in our region, I am amazed at what I discover—from how to operate a cherry harvester to learning about the difficulty our farmers face in obtaining qualified workers. In January, I was honored 19

PARTNERS Fall 2013

While in Congress, I have worked with local producers and agribusiness owners to find out what issues matter to them most. I am committed to fighting for our local producers and working to expand local agriculture production in Michigan.

Earlier in the year, I supported the passage of a bipartisan Farm Bill that will provide the certainty farmers need to invest and plan for the future. After a devastating crop freeze last year hurt Michigan fruit farmers, I helped fight to get specialty crop insurance in the House Farm Bill.

I have also participated in numerous meetings and trade missions that will work to increase Michigan agricultural exports around the world.

Many farmers in northern Michigan I have been meeting with have told me that costly regulations from Washington are making it harder and harder for them to do business.

Our farmers work hard every day to deliver quality products to our table, the last thing Michigan farmers need is federal bureaucrats making their jobs tougher. That is why I have been standing up to these regulators and working to stop some of these costly rules from taking effect. We need these guys in Washington to start using some common sense and listen to our farmers, instead of just passing more and more costly regulations.

Additionally, I have continued to work with my colleagues on the Agriculture Committee and in the entire House to improve access to check off programs for local crops for education, research, and marketing purposes.

I know that what Michigan’s farmers want the most is to be able to keep their businesses open and to raise their families.

That is what we all want. Michigan has always been home to independent and hard-working people. It is imperative that Congress stand by our farmers and ensure that they have the support and certainty needed to continue to provide food for the nation. That is what I support and that is what I will continue to fight for.

FEDERAL STUDENT AID

FAFSA

Free Application for Federal Student Aid

Attention Parents: If your child is heading off to college for the first time in Fall 2014, now is the time to start thinking about how they are going to pay for it.

According to data released in August 2013 by the National Center for Education Statistics (NCES), in-state tuition at community college rose almost 6 percent to an average of $3,131 last year, while in-state tuition at a four-year college rose 5 percent to an average of $8,655. Four-year private collages average much more, coming in at a $29,056. And that is only part of the cost of college.

With food, housing, books, supplies, and transportation, the total cost to attend an in-state public college averaged $17,860 in 2012.

However, as the saying goes, every cloud has a silver lining. In the 20112012 academic year, 71 percent of all undergraduates received some type of Federal financial aid. Aside from grants—money that does not need to be paid back—Federal financial aid also includes work-study and loans.

Work-study is exactly what it sounds like, a work program through which your child earns money to help them pay for school. Loans, which must be paid back with interest, can be taken out by the student, the parent, or both, but typically carry a lower interest rate for the student. And because the Bipartisan Student Loan Certainty Act of 2013 was signed by President Obama on August 9, the interest rates will now be fixed for the life of the loan. In addition to Federal financial aid, 29 percent of

undergraduates had access to State grants. So the question becomes, then, how do you get your hands on a slice of the pie?

The answer is simple: submit a free application for Federal Student Aid (FAFSA). Although the name implies the application is for Federal aid only, most states also use the data to determine eligibility for state grants.

The FAFSA is available online at www.fafsa.ed.gov.

Here are a few things to keep in mind: First, you do not need to be admitted to a university before applying for financial aid. If your child is still shopping around for the best fit, you can have the FAFSA data sent to up to 10 schools. The schools can then work up financial aid packages to help you and your child decide whether or not that school is a viable choice. To actually receive funds, however, your child will need to be admitted and enrolled.

Second, the FAFSA form cannot be submitted before January 1 as the needs analysis process for financial aid uses your family’s financial information from the most recent tax year. Though you do not need to rush to get the FAFSA completed on January 1, you should submit the form as soon as possible. The State of Michigan, for instance, gives priority for state aid programs to those students whose FAFSA is received

by March 1. In Wisconsin, priority is given for those students whose application is received before April 1.

Many schools will also prioritize their institutional grant and scholarship awards for students who apply by these dates.

The third thing to keep in mind is it is acceptable to use estimates of your

income and then revise your FAFSA with the actual numbers once the taxes are filed. The key here, though, is your estimates need to be close to the actual values. If you are a wage earner with only W-2 income, this is a relatively straightforward process.

If you are self-employed, this becomes a slightly more cumbersome process. To ensure your estimated values are close to actual, you need to work with your tax accountant now to make sure they can provide you with a year-end income statement that closely resemble what your actual tax return will look like.

Waiting until January to drop off a shoebox full of receipts will not allow them sufficient time to generate an accurate statement.

In addition to helping you put together an accurate income statement, your tax accountant can also work with you to identify the tax benefits of education. From tax credits and deductions, to working with 529 savings plans, they can help you maximize your tax savings.

While there is no doubt that weaving your way through the financial aid maze is a daunting task, it is not impossible. Working with your tax accountant now to get a head start on the process will pay huge dividends come January. If you are in need of a tax accountant, give your local branch a call, 800-444-3276. With more than 20 tax accountants on staff, many with the Enrolled Agent and/or CPA designation, we would be more than happy to provide our expertise to assist you.

For more tax planning information, review our Tax and Accounting Newsletter: www.greenstonefcs.com/ newsandmedia/publications Fall 2013

PARTNERS 20

GUEST COLUMN

Environmental Issues:

A PERSPECTIVE AND A CONCERN By: Alan Hahn The Cuyahoga River in Ohio was, for many, the poster child for today’s environmental movement. From at least the 1930s through 1960s, The Cuyahoga River was used as a dumping ground for industrial discharges. The river was worse than dead; it actually caught on fire several times. The worst occasion occurred in 1952 when fires on the river caused more than $1 million in damages. This was the river that Time magazine said, “oozes rather than flows.”

Today, the Cuyahoga River is alive with more than 60 species of fish. There are also beavers and it is a nesting area for Bald Eagles and Blue Herons. This river is one of several examples of the progress we have made in the United States in being proper stewards of our environment.

So, with significant progress in cleaning up “past environmental sins,” what are today’s

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pressing environmental issues? More importantly, where is the Environmental Protection Agency (EPA) going to focus their enforcement efforts in the coming years?

To answer this, we need look no further than the EPA’s Office of Enforcement and Compliance Assurance, recently released National Environmental Enforcement Initiatives

GUEST COLUMN

" Among the six priorities, which include issues such as controlling raw sewage, reducing toxic air pollution, and focusing on the energy sector, is “Preventing Animal Waste from Contaminating Surface and Ground Waters.” "

waters, threaten drinking water sources, and adversely impact vulnerable communities.”

As if to emphasize their point, recently the EPA issued the following document, “Criminal Enforcement Alert, EPA Targets Clean Water Act Crimes— Illegal Pollution by Animal Confinement Operations Punished

by Fines and Incarceration.” This document also includes some recent examples of enforcement at livestock operations. for 2014-2016. Among the six priorities, which include issues such as controlling raw sewage, reducing toxic air pollution, and focusing on the energy sector, is “Preventing Animal Waste from Contaminating Surface and Ground Waters.” If this sounds familiar, it should, because the EPA office of enforcement had this on their list of priorities in 2011-2013.

The EPA’s stated goal is, “…to take action to reduce animal waste pollution from livestock and poultry operations that impair our nation’s

Why is the EPA so concerned with livestock agriculture? They will point to the problems associated with excessive nutrient loading in surface waters. These excessive nutrients can lead to algal blooms, depleted oxygen and dead zones. Is this a legitimate environmental issue? Yes…but, what are the sources of these nutrients in surface waters? Are nutrients the cause of the dead zones? What are the other factors that influence the health of surface water? Answering these questions is not easy—it requires a scientific and thoughtful approach.

Does livestock agriculture pose a significant threat to our nation’s environment? The EPA seems to believe it does and is planning their enforcement accordingly. Should farmers be concerned with the EPA’s focus? If you are a livestock farmer and/or if you land apply manure, you should, at a minimum, be aware of this national regulatory enforcement focus.

We haves come a long way since the days of rivers set ablaze from industrial contaminants. Certainly, we can all agree that we should be good stewards of our environment. If we are genuinely concerned about finding the right solutions, we need to follow the rigors of science, which means clearly understanding a problem before offering solutions.

ABOUT THE AUTHOR Alan Hahn is an Environmental Professional and Business Development Manager at The Dragun Corporation in Farmington Hills, Michigan The opinions stated herein are not necessarily those of GreenStone Farm Credit Services.

Fall 2013

PARTNERS 22

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