Partners - Spring 2008

Spring 2008

Editor’s Note

Editor’s Note

With the long and all too often cold and snowy winter behind us, it’s time to look ahead

to another planting season for many of our customers…and for all of us, the refreshing feel of spring in the air. Many of you involved in agriculture today are enjoying the unprecedented prosperity that our industry has experienced over the past few years. We sincerely hope that all of you realize success in your business in 2008…and that you will continue to look to GreenStone Farm Credit Services as your partner in meeting your financial services needs. While we know this can be a very busy time of year, we also hope you will find a few moments to enjoy this latest issue of Partners. Happy reading…and as always, your comments and ideas are welcomed.

CONTENTS

SPRING2008

FEATURES

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Published by

Young, Beginning and Small Farmer Focus Preserving a small family farm is not an easy task. The key to successful business succession goes beyond the dollars and cents to the philosophies and values within the family.

EXTRAS

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Consider Leasing Your Next Building

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MarketMaker Resource

IN EVERY ISSUE

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CEO Comments Market Outlook Director’s Corner News Update

COLUMNS

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Part-time Ag Producer Action Plan

by Dr. David Kohl

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Build Your Bench, Build Your Business

by Mike Fassler

CEO Comments

CEO Comments

by Jim Schiller

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pring 2008—a welcome time of the year following what

felt like an abnormally tough winter season with lots of snow and cold weather. What appeared somewhat unique is the volatility in temperatures which meant enough thaws to keep the snow piles under control, yet keeping the lakes frozen for good ice fishing.

This weather volatility reminds me of the agricultural economy where we are also seeing rapid change and volatility.

Generally, commodity prices are positive and moving upward while supply inputs are moving higher. Overall, agricultural economics remain favorable with margins left for profits.

The exception is the livestock industry purchasing highpriced feed.

Agricultural Profitability—Will It Last?

Record high net farm income fueled by high commodity prices has created very positive and exciting times. Until recently, even the livestock sector was able to keep up. Are we in a new economic scenario with increased world demand that is sustainable into the future? Will the alternative fuel initiatives use agricultural production and further stimulate demand?

No one really knows the final answer to these questions.

However, it is relatively certain that something will happen to change either from the demand or the supply side of this cycle. We need to be prepared for further volatility and potential squeezes in profitability as a result.

Bottom line, don’t become too conservative as to not take

Interest Rates The Federal Open Market Committee has again lowered rates, and we were pleased to pass on a 1.25 percent rate reduction effective March 1 on our variable rate loans.

Furthermore, an additional .75 percent reduction was made in the Fed Funds Rate on March 18, which could potentially lower our cost of funds and allow us to pass on an additional rate reduction.

Intermediate and long-term rates are stabilizing; and as short-term rates largely influenced by the Fed continue to reduce, the yield curve is returning to an upward slope. Likely intermediate- and long-term rates will rise, and we may very well be at the bottom of the market for converting to longerterm fixed rates. Depending on your individual financial position, lower short-term rates, likely to be sustained for a period of time into the future, will ease cash flow shortages but also provide some more volatility in the future.

I urge each of you to review your position and discuss it with your loan officer to establish the right mix that best fits your operation.

The fear of economic recession in the U.S. economy will likely keep overall interest rates in check for the remainder of the year and into 2009.

Summary Opportunities in agriculture continue and are exciting.

Volatility will also continue and cause us to reassess and adjust along the way. GreenStone, as your financial services cooperative, understands those cycles and is here to assist you by providing constructive credit to help you capitalize on opportunities while maintaining an eye for risk management.

Best wishes for a safe and successful planting season; and, as

always, we welcome your comments and questions.

advantage of growing demand and profitability potential, but make your expansions only when added working capital and sufficient equity remain to pull you through an adjustment.

Many livestock producers are currently in that position, using their working capital to sustain their operations as feed costs continue to skyrocket.

Spring 2008 PARTNERS

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Market Outlook

MARKET OUTLOOK Spring2008

By Ken Lake

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typically fill this space with a combination of recent market analysis and price outlook for the near term.

Recent market movement leaves me at a loss to describe the move in a way that hasn’t already been offered by countless analysts. Further, offering price outlook over the near term, to me, seems equally futile. To the point, when you think of Minneapolis Wheat earlier this year, its weekly trading range was more than the crop was worth a year ago. And just when we thought that was the market move to top all moves, it then traded up $4.75 a bushel in a single day; once again, more than the crop was worth a year ago. To analyze and predict future price moves in this sort of volatility is not only futile, but border line larcenous.

A Greek philosopher said “nothing endures but change”. In my 30 years in the commodities business I have never believed in so-called new price plateaus or new pricing paradigms when it comes to commodities…for once they are adjusted for inflation, interest rates and currency exchange discrepancies, commodities always return to a “normal” value. But I now have to question whether that paradigm has changed. What if what we are seeing now is the new “normal”?

I attended the recent Renewable Fuels Association’s National Ethanol Conference, whose theme was “Changing the Climate”. This was their 13th annual conference and the 5th one I have personally attended. There has been much change in those five years. Those early conferences were marked by attendance of a small group of ethanol producer “wannnabees” and the RFA charged no fee to attend! This year, more than 2,000 attendees paid $600 for the privilege to attend and listen to presenters from fields as varied as high finance to environmental regulation. I left wondering what was in store

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for our industry as we begin the debate on issues such as Life Cycle Carbon Accounting and Indirect Land-use Change as it relates to Greenhouse Gas emissions. If any of these terms are foreign to you, take some time to learn more, as they are important issues facing every farmer.

Well, enough editorial…let’s talk price, as futile as it may be.

Corn recently closed within pennies of the 1996 high as the U.S. dollar made new lows, spurring investors to add to their market length. There is little question that cash-rich index and pension funds have both the money and stamina to own as much of any commodity as they wish. Even though seasonally both corn and soybeans should be making highs, the top of the market cannot yet be confirmed in either crop. One thing is certain, high prices will ration demand and stimulate production; therefore, a long-term high in both corn and soybeans should be forming this crop year.

In the last six months, the ethanol industry reports seeing linkage of corn value to ethanol for the first time ever. While it is certainly too early to tell whether the trend will continue, it is certainly a promising signal for ethanol producers. Price linkage simply means as corn value rises, ethanol value rises as well—allowing ethanol producers to seek out small margins.

As the ethanol industry matures and its product becomes a mainstream motor fuel component, ethanol buyers seem willing to pay what it takes to keep the supplies flowing. Time will tell if this linkage continues, but at least for the short term, well-managed ethanol plants are not losing money in a five-dollar corn market.

Spot soybean futures made new contract highs recently with the March contract over $15.00 a bushel. We continue to see Chinese demand for vegetable oils, which has sent March soyoil to a new high of over 68 cents per pound. Rains continue to fall in South America and should put a nice finish on what should be a record crop, but don’t look for a top to form in soybeans until vegetable oil demand falls.

The wheat market continues to be marked with wild gyrations. One trading firm recently reported a $140 million loss. This extreme market volatility is typically demonstrated in markets forming a top. Look for sideways to lower wheat values as we transition into next summer’s winter wheat harvest.

Ken Lake is the Origination Services Coordinator for Michigan Agricultural Commodities Inc., Lansing, Michigan, and a licensed commodities broker registered with the National Futures Association.

The opinions stated herein are not necessarily those of GreenStone FCS.

Farm Management

Part-time Ag Producer Action Plan

by Dr. David Kohl

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urprisingly, of the 2.1 million American farmers and ranchers, nearly 1.7 million operate their business part-time. This is commonly known as the lifestyle producer.

The goals are three fold: make sure the business generates some income in good years and minimize the losses in the bad years.

Second, be an entity that is an expression of a person’s passions.

Third, the business is designed where family and/or friends can enjoy.

Aimed at increasing the probability of success, the following are a few actions that I covered in a part-time producer seminar sponsored by Northwest Farm Credit Services.

pursue farming full-time. One will have to generate $40,000 to $70,000 in net income to be considered full-time.

Keep Monitoring the Goals of Key Individuals Involved Realize that passions can quickly burn out when there is too much time commitment and not enough financial reward.

“TIME MANAGEMENT IS ONE OF THE CRITICAL ISSUES FACED

BY PART-TIME PRODUCERS.”

Can You Find a Balance?

Time management is one of the critical issues faced by parttime producers. Are the enterprises in synergy to full-time employment or the goals of one’s retirement? If fully employed, hours on the farm/ranch exceeding 1,000 annually will generally stress the overall objective of being a part-time producer. This is particularly true if one’s employment on non-farm business exceed 2,500 hours annually in time commitment.

Is This Your True Passion?

Constantly assess family members’ goals, desires, and passions as they can quickly change. For example, a teenager who had a passion for chickens and equine can find dating, commitments in school, and other activities create a dilemma for a family that built the business around the children.

Before you take the big plunge and become a part-time producer, make sure to analyze the financial and time commitment required in an evolving family goal structure.

Some people’s passions run high with the agricultural enterprise. They have selected and aspire to quit their jobs and Dr. David M. Kohl is Professor Emeritus of Agricultural Finance and Small Business Management and Entrepreneurship in the Department of Agricultural and Applied Economics at Virginia Polytechnic Institute and State University (Virginia Tech), Blacksburg, Virginia. He has conducted more than 3,000 workshops and seminars for agricultural groups such as bankers, Farm Credit, FmHA, and regulators, as well as producer and agribusiness groups. He has published four books and over 400 articles on financial and business-related topics in journals, extension, and other popular publications.

The opinions stated herein are not necessarily those of GreenStone FCS. Spring 2008 PARTNERS

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Guest Column

BUILD YOUR BENCH, BUILD YOUR BUSINESS

By Mike Fassler

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ow energizing and fun it is to build your business— more revenue, more production per unit, more acres, more sows, more cows, more, more, more... As producers make plans to build their business, the focus is usually on the physical assets required, the top line (revenue) and the bottom line (net income).

“BUILDING YOUR BENCH AS YOU BUILD YOUR BUSINESS IS CRITICAL TO ACHIEVING PROFITABLE GROWTH.” Along with, and at least as important as, the plans regarding assets, revenue, and net income is a thorough discussion and plan around “building your bench” or developing your

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management team. Building your bench as you build your business is critical to achieving profitable growth.

Past a certain point in the size of your farm business, lack of commitment to building your management team will cost big money. No question about it. Many farm business owners have built their business and then have a wake-up call which makes them realize the gap they have—the size and complexity of the business has outgrown the capabilities of the management team. The result of this is that they pay for the management team development twice—the first payment is the money lost as a result of not building the bench while they build the business; the second payment comes with the investment in management team development required to be successful on the scale at which they now operate.

So how does a farm business owner get started with building the bench? The first step has to do with changing the culture within the family and the business as to what gets rewarded.

It is quite common for the rewards (emotional and financial) to flow to those in the family business who are the “last to turn the lights off in the shop” or the “last one to get off the tractor” or the “last one to get in from doing chores.”

“PUSH TOO HARD AND YOUR MANAGEMENT TEAM WILL GET FRUSTRATED AND BECOME UNMOTIVATED, OR PERHAPS EVEN QUIT.” A continued focus on physical hours worked versus results will limit, and at the worst negate, your ability to attract quality management personnel, be they family or non-family.

And if you can’t attract ‘em, you can’t keep ‘em.

Development of your management bench strength requires time for confidence and capabilities of individual team members and the team to develop. Taking time requires patience on the part of the farm business owner to start to see the results of the investment. And it is not always a clear picture. Push too hard and your management team will get frustrated and become unmotivated, or perhaps even quit.

Don’t push hard enough and you won’t challenge people to grow and build their capabilities.

Clear direction regarding expectations for your management team members is crucial to building your bench. This includes expectations on continuing education, performance levels, and behavior. Lack of clear expectations will lead to too many opportunities to make assumptions. And wrong assumptions on the part of the management team members will lead to significantly reduced development of management team capabilities.

“MANAGEMENT TEAM DEVELOPMENT WILL NOT TAKE PLACE UNLESS SPACE IS MADE AVAILABLE FOR OTHERS TO DO THE MANAGING.”

leading the management team members who will do and manage the work. Leading is about influencing the management team members to do the right work for their own reasons in the right way so the business will achieve its goals.

This shift can be difficult for owners because it requires a dependence on their ability to influence others rather doing the work themselves and thereby controlling the outcome.

Management team development will not take place unless space is made available for others to do the managing.

As with all good things in life, development of a solid management team requires an investment. Success will follow once an investment in building your bench is made. So plan for it, make it a deliberate investment choice, and realize your dreams as you build your business.

Mike Fassler is Director Consulting Services and a business consultant with Salisbury Management Services, a division of AgStar Financial Services, ACA. Mike helps agricultural producers grow their businesses while keeping the business healthy and the family happy. Mike can be reached at mfassler@salisbury-management.com or at 800.663.5608.

CUSTOMER APPRECIATION

That’s GreenStone!

Customers in Michigan’s Southeast Region–which includes our Adrian, Ann Arbor, Concord, Hillsdale, Howell, Mason and Monroe offices–will want to mark their calendars for this year’s appreciation event at MIS.

Join GreenStone and the FFA Friday, June 13, 2008 Michigan International Speedway–ARCA Race • Event and pit tours begin at 9 a.m., lunch 1 to 4 p.m.

• NASCAR Sprint Cup Qualifying 3 p.m., ARCA Race starts at 5:30 p.m.

• FREE pit passes: 18 and older (appropriate attire only)* • Access to GreenStone & FFA Hospitality tent in Chalet Village • Reservations are limited to customers and their immediate family

No RSVP’s will be allowed after April 15, 2008!

You MUST RSVP to RESERVE your tickets

Building your management team will require a shift in the farm business owner from doing and managing the work to

RSVP with your local branch or call 800-968-8500 or email: andrew.kudwa@greenstonefcs.com *Persons wearing sleeveless shirts,tank tops, shorts or open toed-shoes will not receive access to the pit area.

Spring 2008 PARTNERS

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Director’s Corner

MEET BRIAN HASKIN

Your Region VI Director

Brian Haskin, and his wife Becky, farm approximately 4,000 acres of corn and soybeans near Sunfield, Michigan, located in Eaton County. Brian began farming in 1980 when his father retired from the business.

Over the years, in addition to corn and soybeans, Brian has raised string beans, edible beans and wheat as well. Brian and Becky have four children: Michael, 24, who also works on the farm; Sarah, 22; Kristen, 19; and Alex, who is 18. Following high school, Brian attended a two-year short course at Michigan State University prior to getting his start in farming. In addition to the farming operation, Brian owns and manages Hazel Bros. Drainage, LLC and Haskin Snowplowing, LLC. He is a board member of the Lakewood Education Foundation; as well as a member of St. Edward’s Catholic Church and the Knights of Columbus. Brian was first elected to a three-year term on the GreenStone FCS Board of Directors in 2006.

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What is your main goal or issue that you would like to address as a director?

experience and knowledge offered by this organization throughout all industries is extremely beneficial to the customer.

Most importantly, I just want to do my part to help assure that GreenStone continues to experience the success that it has, and that it meets the financial needs of its customer base.

From a customer standpoint, GreenStone makes it easy to do business with them. The first two or three loans I received from GreenStone were completed without me seeing the inside of the office…I signed papers on the edge of the field where I was

When I was asked a couple of years ago to run for the board of directors, I felt it was an honor to even be considered. When you think about the fact that your peers think highly enough of you and have the confidence in you to represent them in such a position, I consider this to be a special opportunity…and one that I’ve really enjoyed.

The area that GreenStone serves boasts a uniquely diverse set of industries within agriculture. In general, what do you see as the key to their success in the future?

Part of the key is having such a strong and dependable lending institution, such as GreenStone, to help meet farmers’ capital requirements. Secondly, just as you mentioned, the diversity of agriculture in our area really helps us all be more successful…the ability as producers to be able to adapt to the changing market and to be flexible enough to change is extremely beneficial.

“THE EXPERIENCE AND KNOWLEDGE OFFERED BY THIS ORGANIZATION THROUGHOUT ALL INDUSTRIES IS EXTREMELY BENEFICIAL TO THE CUSTOMER.” I also think farmers need to be educated and prepared for the inevitable downturn in the agricultural economy at some point.

As you know, these things are cyclical and we will undoubtedly experience a shift towards less profitable times. We all need to be thinking ahead and be ready so our businesses are effectively positioned to sustain that shift.

What do you view as GreenStone’s strategy towards accomplishing its mission and ensuring the vision of the organization is achieved?

“I SIGNED PAPERS ON THE EDGE OF THE FIELD WHERE I WAS PLANTING. THAT SHOWS THE COMMITMENT THIS ORGANIZATION HAS FOR MEETING THE NEEDS OF ITS CUSTOMERS.” planting. That shows the commitment this organization has for meeting the needs of its customers, and for making it convenient.

In addition, I really hope all of our customers realize the importance and uniqueness of GreenStones Patronage Program.

You don’t see many other financial institutions returning patronage or giving back to their customers part of their interest payments. I think it provides them with real added value for doing business with their cooperative.

The bottom line is that GreenStone has an extremely qualified workforce, and that alone goes a long way towards assuring continued success.

What has been the most significant advancement you have seen in your lifetime in regards to agriculture?

For me, it’s the technology in the equipment and the genetics in the plants. If someone would have said just seven or eight years ago that we would have plants that are corn borer resistant, rootworm resistant, and that you could spray them with Roundup without doing any harm, we would have all laughed.

With the advancements in today’s equipment technology such as the capabilities of the tractors with GPS, it really is amazing what we can do today.

Some of these advancements provide farmers with a greater piece of mind when planting their seed, and others have made us more profitable…together they’ve been key in helping us become more efficient at what we do.

I think GreenStone is taking great measures to understand its diverse customer base…and I think that’s important. The Spring 2008 PARTNERS

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Young, Beginning, and Small Farmer Focus

LIVING THE LEGACY:

THE ROBERT E. NELSON FAMILY

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reserving a small family farm is not an easy task. Aligning goals and ambitions of each generation within existing business structures and parameters is often a tricky balancing act for farm families. Bringing a new generation into the farm poses a variety of business strategies from increased capital investments to phasing out current generations. The key to successful business succession goes beyond the dollars and cents to the philosophies and values within the family.

For the Robert E. Nelson family of Lapeer, it is the desire to work together to preserve a family farm stretching through six generations on the same land, that drives them to continue working together.

The evolution of the farm’s generations is punctuated by the introduction of new enterprises on the farm. The backbone of the Nelson’s business is 550 acres of cash crops and a sawmill.

By Laura Moser

Today, three generations derive a living we built it as needed.”

The reduction in smaller sawmills in from the business stemming from the recent years has hurt their business, but Nelson farm and sawmill. The elder they continue to build the machinery as Nelson, Robert Jr., and his son-in-law orders come in. The reduction of Dennis Root, manage their custom RENCO sales spurred a new enterprise sawmill equipment business, RENCO from the sawmill – custom wood Products, Inc. Robert Jr. and his father products. started RENCO Products in 1963 when they began manufacturing E HAVE ALWAYS WORKED TO MAKE custom machinery for their own OUR NEIGHBORS AWARE OF WHAT WE sawmill. Soon they DO AND WHY WE DO IT had a complete line of custom sawmill Robert Jr.’s son, Robert V, concentrates machinery that they sold throughout the on the finished side of the sawmill, eastern half of the United States. planning and designing custom wood “We started making our own products for flooring and interior trim equipment when we couldn’t find what for houses. His business, Nelson Wood we needed from others,” says Robert Jr., who spent some time at the GM institute Products, serves local builders and homeowners. after high school. “Soon others were The Nelsons run over 50,000 feet of coming to us to buy the equipment so

“W

.”

Pictured above: The Nelsons run over 50,000 feet of lumber through their sawmill and drying kiln each year. Pictured (l-r) Robert VI, Robert Jr., Robert V, Richard and Dennis Root.

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lumber through their sawmill and drying kiln a year. Robert also buys several thousand feet of lumber a year for the custom wood business.

“We have been doing the custom wood products since pigs were nine

“We believe you have to let the young story. From letters to the editor to people take over, give them some printing bumper stickers, he works to responsibility and a chance to find out make sure people have a knowledge and what they want to do,” Robert Jr. says. appreciation of farmers.

“You just have to let them do it “If we don’t produce food in this themselves so they learn. Most country, who will?” is the common importantly they question he poses to those unaware of have to enjoy what farming’s importance.

E BELIEVE YOU HAVE TO LET THE they do.”

Along with the business skills and Aside from opportunities, the Nelsons have also YOUNG PEOPLE TAKE OVER GIVE THEM giving the younger passed along the importance of being a SOME RESPONSIBILITY AND A CHANCE generation positive influence in the community. opportunities to try Today, each one of the family members TO FIND OUT WHAT THEY WANT TO DO different business belongs to community groups and ventures, Robert Jr volunteers their time in various cents a pound,” Robert V says. “When and Joyce have spent decades working to activities. we sold those pigs at basically a loss, I keep their neighbors informed about “The Nelsons are a fantastic family. . . said it was time to try something else.” their farming and sawmill business they are very education focused and Recently, the next generation of through community outreach activities. committed to teaching others about Nelsons, Richard and Robert VI, Robert “People are so far removed from the agriculture, not just about their farm,” V’s 20-year-old twin sons, have come farm these days, they think it just says GreenStone FCS Loan Officer Sandy into the family business bringing their appears on the store shelves,” Robert Jr., Arnold. “They take tremendous pride in interests into the mix to start their own says. “We have always worked to make what they do and they do it all enterprise. They younger Nelsons are our neighbors aware of what we do and together.” dabbling in a variety of things to see why we do it.” where they will plug into the business.

For several years, until they Together, they run 400 maple syrup taps ran into a dry spell with the throughout their woodlots. Poor spring syrup, the Nelsons hosted Sap weather the past couple of years has and Slab day at their farm. The limited their syrup production, but they community event featured tours are hopeful that this spring will be of the operation, a pancake different. Along with the syrup business, dinner and a small petting zoo.

Richard, an avid outdoorsman, has a The annual event drew taxidermy business. He is working with hundreds of people to the farm. his father designing custom trophy “We have talked about mounts to sell with his taxidermy starting them up again because services. The younger Nelsons are also it was such a good way to talk raising some beef steers and a few hogs. to our neighbors,” Robert V Robert Jr.’s wife Joyce is the says. “But until we get a good bookkeeper for the Nelson’s enterprises. sap year it is difficult to do She keeps track of all the accounting and because we have to go out and payroll for the business. Robert’s buy the syrup which becomes younger granddaughters Katie and expensive.”

Robert and Joyce Nelson enjoy working along side Stephanie also help by answering phones Robert Jr., never misses an their children and grandchildren every day with the or working in the fields. opportunity to tell the farmers’ farm and sawmill businesses.

“W

,

.”

Spring 2008 PARTNERS

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Lease Financing

Consider LEASING Your Next Building

By Nancy Blaauw Leasing and Trade Credit Specialist GreenStone Farm Credit Services Not only does GreenStone Farm Credit Services provide true tax leases on equipment, but buildings as well. Most people don’t think of leasing when they are considering putting up a new building but there are several tax advantages to consider with leases.

Most tool sheds and farm shops are considered multipurpose buildings by the IRS and take 20 years to depreciate. Plus, you are not able to use your Section 179 deduction on these types of buildings. By leasing these buildings, you can reduce the amount of time it takes to “write off” a facility. This could amount to a large tax advantage at year end.

Leases can be structured with monthly, quarterly, semiannual, or annual payments. In addition, GreenStone can customize a rental payment plan to meet your unique needs by using step-up, step-down, skip payment options, or any number of variations that make sense for your financial situation. All payments are structured to meet the IRS guidelines, allowing you to deduct the payments as rental expenses on your taxes.

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Single purpose buildings, such as hog barns, free-stall barns and milking parlors, may also be leased through GreenStone. These buildings typically have a 10-year depreciation period and can be leased for five to 10 years.

Leasing helps equalize your tax expense over the life of the asset versus claiming declining depreciation and interest.

If you have already built your building and haven’t depreciated it yet, it isn’t too late to lease. Please contact your local GreenStone office to learn more about the tax advantages of leasing your next building.

MarketMaker Links Producers with Agricultural Businesses and Consumers Anyone in Michigan who grows, sells, processes or eats food now has a new resource to help them.

MarketMaker is an on-line tool that locates producers, businesses and markets of food products; providing an important link between Michigan producers and their buyers, including end-consumers. The site, located at www.mimarketmaker.msu.edu, provides information on maps so producers, businesses and markets can be visually located. Producers can use the site to find processors, wholesalers, distributors, retailers, restaurants or farmers’ markets who might buy their products. Producers who are registered

on the site can be easily found by their potential buyers and end-consumers.

Registration and use of MarketMaker is free. Producers, processors, wholesalers, retailers, restaurants, farmers’ markets and wineries can register by going to the website and clicking on the link, “Register Your Business”. Producers can also download a paper registration form by visiting the Michigan State University Product Center web site at www.productcenter.msu.edu.

MarketMaker has been brought to Michigan by the MSU Product Center with funding support from Project GREEEN, the Nowlin Chair for Consumer-Responsive Agriculture,

GreenStone Farm Credit Services, the Southeast Michigan Food Systems Economic Partnership, the C.S. Mott Chair for Sustainable Food Systems, Michigan Food & Farming Systems, and the Washtenaw County Agricultural Council. In addition to the financial supporters, the Michigan Department of Agriculture, Michigan Farm Bureau, and MSU Extension have provided information to help build the database.

Michigan is currently one of 10 states throughout the country with a MarketMaker web site.

SOLUTIONS FOR YOUR ENVIRONMENTAL ISSUES That’s GreenStone!

HOW: GreenStone has partnered with the Dragun Corporation, an environmental consulting firm, to provide a resource for answers to the environmental issues facing your agricultural business.

• New Site Development and Planning • Existing Site Expansion • Environmental Compliance Assessments • Manure/Silage Storage Design • Manure Management Plans • Comprehensive Nutrient Management Plans

• Environmental Permitting and Planning • Environmental Engineering and Design • Groundwater Supply Evaluations • Environmental Due Diligence • Air Quality Evaluations • Expert Services/Litigation Support

WHAT: GreenStone customers can take advantage of a free 30-minute consultation on any environmental issue with one of Dragun Corporation’s specialists. Additional services beyond the initial contact are then agreed to between Dragun and the customer.

CALL: 248-932-0228 to discuss solutions to your environmental challenges!

www.greenstonefcs.com

Spring 2008 PARTNERS

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CONSTRUCTION LOANS That’s GreenStone!

Whether it’s financing for fully contracted or do-it-yourself residential construction projects, the folks at GreenStone Farm Credit Services can customize a loan for you today.

Call your local branch for more information.

Call us today for more information

800-444-3276 • www.greenstonefcs.com

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News Update

News Update Eaton County’s Don Stall wins Michigan soybean honors GreenStone FCS customer Don Stall was a first-prize winner in the 2007 Michigan Soybean Yield Contest coordinated by the Michigan Soybean Promotion Committee and Michigan State University Extension. His 68 bushel per acre yield last year was nearly double the state average of 36 bushels per acre according to the U.S. Department of Agriculture’s Agricultural Statistics Service. Stall farms 2,000 acres northwest of Charlotte, where he has farmed for 32 years.

GreenStone FCS Recognizes its Top Performers GreenStone recently recognized its Circle of Excellence Award winners for their high level of performance this past year. The Circle of Excellence Program is a way to recognize and reward those lending and financial services staff who were the best of the best within the Association. Performance was rated using various criteria including loan and revenue growth and new customers.

Platinum Awards were presented to the top 10 percent of our entire lending staff. While Gold Awards were given to the next 10 percent of lending staff, as well as the top two performers in each of our financial services areas.

Each of the winners, along with the support staff for all Platinum Award recipients, were recognized at the 2nd Annual GreenStone FCS Circle of Excellence Awards Banquet on February 29 in Lansing, Michigan.

The following GreenStone FCS staff members represent the 2007 Circle of Excellence Platinum and Gold Award winners.

PLATINUM AWARD WINNERS Traditional FSOs Dave Meyering, Cadillac Duane Paturalski, Berrien Springs Dennis Nykamp, Schoolcraft Karl Kincade, Berrien Springs Dan Gitter, Clintonville AgriConsumer FSOs Cynthia Cole, Ionia Kim Cool, Cadillac Sheryl Smith, Charlotte Commercial FSO Larry Urban, Allegan GOLD AWARD WINNERS Traditional FSOs Jack Koester, Alma Dave Messing, Sandusky Tony Barcroft, Hastings Gayle Olson, Appleton Paul Slagter, Hillsdale AgriConsumer FSOs Warren Emery, Grand Rapids Judy Knockeart, Lapeer Debbie Teller, Concord Commercial FSO John Jones, East Lansing Accountants Mark Koester, Schoolcraft Keri Holder, De Pere Tax Accountants Kelly Tobin, East Lansing Ralph Wesoloski, Coleman Appraisers Keith Aeder, Caro Dennis Makula, Adrian Crop Insurance Specialists Tyson Lemon, Berrien Springs Terry Sorenson, De Pere Congratulations to all of the winners of the 2007 Circle of Excellence Awards!

Spring 2008 PARTNERS

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CASH...SIMPLE, FAST, ON DEMAND That’s GreenStone!

With input costs rising, you need a dependable, straightforward and low cost source of money. And the lending experts at GreenStone Farm Credit Services are always on hand to assure your funds get delivered pronto. GreenStone offers competitive financing options with flexible terms to keep your business on track.

We provide financial support you can count on: • Operating loans • Lease financing • Real Estate loans • Equipment financing and more!

Call us today for more information

800-444-3276 • www.greenstonefcs.com

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

PARTNERS PO Box 22067 Lansing, MI 48909 517-318-2290 jim.nowak@greenstonefcs.com aaron.classens@greenstonefcs.com bill.eva@greenstonefcs.com melissa.rogers@greenstonefcs.com

1760 Abbey Road East Lansing, MI 48823