Partners - Summer 2014

GreenStone FCS

Summer 2014

Promoting the business success of our customers and the rural community

MARKET OUTLOOK SMARTPHONE SECURITY FFA INVOLVEMENT

HANTZ FARMS PARTNERSHIP SUMMER INTERNS DIRECTOR’S PERSPECTIVE PAC UPDATE

NEXT GENERATION BRINGS NEW

ENERGY

Editor’s

NOTE Summer 2014 Published by:

GreenStone Farm Credit Services

2 Comments from CEO Dave Armstrong CEO Dave Armstrong shares an update on your cooperative's state of business, highlights some recent activities, and says farewell and congratulations.

4 My Access Revealed Learn how this new online portal can benefit you.

5 Market Outlook Agricultural economist, Bob Utterback, provides insight on positioning your operation for a profitable harvest in the fall.

8 Legislative Matters Dialing up the volume on the voice of agriculture is a collaborative effort. Learn about some steps being taken to assure the message is heard loud and clear.

11 Summer Interns Seven talented students are rolling up their sleeves this summer at GreenStone to gain hands on experience.

GreenStone is rounding out the implementation details to deliver a quality new online portal, My Access; we are engaged in servicing customers, pulling unique solutions from the nearly 100 years of experience we bring to the partnership; staff are enthusiastically involved in the communities and events throughout our territory; and we are thrilled to support the many producers hosting their neighbors and urban residents on the farm to visually share agriculture’s story. But that’s enough about us—read on throughout this publication, because these articles, and much more, are really about you. We provide you this Partners publication to share useful information to benefit your operation and to keep you informed on the latest news at your cooperative. As we reach the peak of summer, may the sun and rain be kind to you and provide a relaxing opportunity to read on!

12 FFA Involvement Learn how GreenStone is actively engaged in supporting agriculture's next generation.

13 Feature Article This young Wisconsin couple is leveraging new technology on their transforming dairy farm with great success.

Summer Notes 9 Hantz Farms 10 MAEAP 10 Tech Tip 10 Calendar of Events 12 Pause for Applause

17 Where Are They Now 17 PAC Progress 18 Candid Comments 20 Board Election Results

18 GreenStone's Story It's true what they say... the grass is not always greener on the other side.

19 Director’s Perspective Bill Stutzman may be absent from the GreenStone board, but remains heavily involved with Farm Credit.

21 Guest Column A little investment in employees can return dividends down the road.

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

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COMMENTS

From CEO Dave Armstrong

Spring was officially here on March 20, but we all know it did not feel like it was here until the second week of May

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ven then, it brought with it April showers to many parts of our territory, making this year’s planting season one of the latest in many years. Thankfully, things have now dried out and warmed up enough to finally get the growing season underway. Now, for a warm, extended fall!

Even with the late start, 2014 should be a good year barring any significant weather or geopolitical events that could disrupt financial markets and exports.

Taking Action, Making a Difference Over 100 GreenStone staff, family members, and friends joined forces with over 1000 other volunteers from around southeastern Michigan on Saturday, May 17 to help plant 15,000 hardwood saplings on what is likely the world’s largest urban tree farm in the city of Detroit.

Even with the challenges presented by the unusually cold winter and delayed planting season, the outlook for most of the commodities in our territory is relatively good. While margins on corn and soybeans will rise and fall with every dry spell and rain shower between now and harvest, dairy, swine, beef, and poultry prices should remain positive through year end. Although the Porcine Epidemic Diarrhea Virus has taken Additional details about the Hantz project a tremendous toll on hog producers, at least the production they are able to can be found in the story on page 9, but sell should be profitable. the real reason I wanted to highlight this The weather’s impact on this year’s fruit crop is varied with apples and effort here is to recognize and thank all of cherries surviving the brutal temperatures fairly well, only to be ravaged in some areas by rabbits and mice eating the bark off trees, while certain varieties of wine grapes and most of the peach crop was lost. Blueberries also suffered some damage, but overall yields should not be too heavily impacted.

GreenStone’s loan growth to date has mirrored this atypical year experienced by its members. The first month of positive growth finally came in April as people slowly, but surely, came out of hibernation from the long cold winter. Now, with summer here, growth has picked up.

While the country living segment is flat, growth in the capital markets and commercial producer segments (primarily dairy expansion projects) are leading the way. The need for credit in the agriculture sector remains relatively modest for many units due to a string of very profitable years.

There is only so much machinery, grain bins, tile, and/or real estate they can buy!

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CEO COMMENTS

“ It’s really not surprising to see our staff in Detroit; after all, these are the same people who serve you every day with outstanding customer service as they strive to exceed your financial service needs.”

suffered its own Great Recession and the continued existence of the national Farm Credit System was uncertain. His unwavering belief in the cooperative System as a dependable, competitive, and responsible source of credit, along with his business acumen and belief in people were, and still are, characteristics that set Bill apart.

the GreenStone volunteers who took one of their days off, got out of their comfort zone, and did something very tangible to help fellow Michiganders who need a hand up to restore their city. Instead of sitting at home reading news reports and listening to the media about all that is wrong with Detroit, and thinking somebody else should do something, they took action to make a difference.

Bill was elected in 2003 to the AgriBank board of directors (AgriBank is the wholesale bank that provides GreenStone and 16 other Farm Credit associations in the mid-west with lines of credit and other services). During his tenure on the AgriBank board, Bill has served in a number of roles including the board of directors for Farm Credit Foundations (a multi-district System human resources collaboration), the Farm Credit Foundations Plan Sponsor Committee, and is currently

It’s really not surprising to see our staff in Detroit; after all, these are the same people who serve you every day with outstanding customer service as they strive to exceed your financial service needs. The old saying “actions speak louder than words” is so true, and once again members of the GreenStone team joined hundreds of others to be heard loud and clear!

Stutzman “retires” from the GreenStone Board of Directors For nearly 28 years, we have been blessed to have one of the kindest, most dedicated, and competent leaders any organization could ever hope for serving on its board of directors.

Bill Stutzman was first elected to the board of directors at the Production Credit Association of Southeastern Michigan in 1987, serving as chairman for three years and vice chairman for five years. Bill helped lead that organization through the dark days of the mid-1980s when agriculture 3

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In 1999, Bill was elected chairman of the Michigan Joint FCS Management Board, which ultimately resulted in the formation of GreenStone on January 1, 2000.

“ For nearly 28 years, we have been blessed to have one of the kindest, most dedicated, and competent leaders any organization could ever hope to have serving on its board of directors” the vice chairman of the Farm Credit Foundations Coordinating Committee and chairman of the AgriBank Audit Committee.

Unfortunately, AgriBank changed its by-laws in 2010 which resulted in prohibiting dual directorships. Bill chose to stand for re-election to the

AgriBank board in March 2014 and was re-elected, thus resulting in him not being eligible to serve on GreenStone’s board while serving as a director for AgriBank. Fortunately, Bill will still be representing GreenStone’s members on the AgriBank board.

I will personally miss having Bill at GreenStone board meetings. His soft spoken, non-judgmental, and common sense approach to issues and challenges is greatly valued. He has served as a mentor to me for nearly 18 years of my career, of which I am deeply grateful; I will undoubtedly continue to seek his wisdom and counsel in the future.

Please join me in wishing Bill the best in his future endeavors and thank him for all he has done to ensure that farmers in Michigan and northeastern Wisconsin will have a dependable, competitive, and responsible source of credit and financial services for years to come.

As always, thank you for your business and best wishes for a long growing season! If I can ever be of assistance, please feel free to contact me directly at 517-318-4105 or dave.armstrong@greenstonefcs.com.

Dave Armstrong

MY ACCESS

My Access: Revealed

Single login to online banking, and other communication and document tools

We gave you the first sneak peek in our annual report, and now we are excited to peel back the lid quite a bit farther to announce the forthcoming availability of My Access and all the features that come with it!

Links to digital publications GreenStone news and blogs

My Access is an online portal GreenStone is launching that will enable you to more easily manage multiple aspects of your relationship with GreenStone through a single-login, secure, password-protected website.

This means you will now be able to access your account online (Online Banking), send and receive documents with GreenStone electronically (File Exchange), access

your files GreenStone has stored (My Documents), and establish custom alerts based on your needs (My Alerts).

We know you have already been doing all of these things in one way or another.

Now, with My Access, you can do it all in one spot, with only one set of login information to remember; and you can do it with confidence knowing it is secure and protected.

Helpful instructional videos

When can you take advantage of this service?

My Access will be completely unveiled and available for all customers on September 15!

If you currently utilize GreenStone’s online banking system, you will login through My Access starting September 15. Specific communication detailing the simple steps to migrate to this new portal will be sent to you. To make it even more

trouble-free, the only thing changing is the way you get into online banking; your account will not change, nor will any settings you already have established.

Watch for more information in the coming months; and take a minute to visit with your local branch staff to learn how this innovative technology solution can best meet your needs!

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MARKET OUTLOOK

Market Outlook By: Bob Utterback

After a very hard winter and a stressful spring planting period for many in the northern production regions, it is summer—a time to watch the crops grow and to watch weather forecasts, hoping for enough rain but not too much heat.

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fter pollination, producers are more confident a crop will be made. As we enter this time period, it is a period of great upside price volatility because of weather uncertainty and limited cash inventory available. However, as night always follows day, it is only a matter of time before the odds start to fall in favor of the bear as the end of summer nears. When thoughts of the upcoming crop become a more powerful force on the market, along with producer desire to sweep the bins before a new crop, concern about how low the market will drop takes over. A smart marketer realizes these market tendencies and has prepared himself to take advantage of opportunities, rather than only accept what comes.

As we review corn, soybeans and wheat from a historical perspective, the current bull market run started in 2001. We saw an explosion of demand growth in corn and soybeans because of biofuel usage. Along with the domestic increase in usage, we saw a significant jump in soybean usage from China to feed its big livestock numbers. When we combined this with some weather adversity on yields, there have been some exceptional prices the last 13 years.

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On top of all this action in the commodity complex, we saw a general economy that has been struggling since 2008. Over the last four years, domestic and global world banks have inflated the money supply to help the global recovery. While things have stabilized, some would say all we have done is postpone the problem of too much debt in regard to our global income producing capability. The global banks’ trends of low interest rates and excessive liquidity have been positive rather than a negative for commodities.

CORN: At the end of June, the U.S. Department of Agriculture (USDA) acreage report should have confirmed total production numbers close to the March estimates, and we may see a slight increase to 92 million. There seems to be 2 to 4 million acres floating around that will not be abandoned like last year. I think they will go to soybeans, but some could find their way to corn. Nevertheless, with more than 91.5 million acres planted and a yield figure above 160, corn carryover should be at excessive levels that do not support $5 corn. I do not want to get bogged down in the numbers; the important thing is the trend. I believe the highs were seen in April and we will see the lows before harvest very close to $4. Wide basis levels will force farmers to store much of the 2014 crop into the spring of 2015, hoping for a weather event to stress prices. I see a problem developing—if acres stay above 90 million in 2015 and yields above 160, we could see carryover move to burdensome levels. We are painting ourselves into a corner. If there are normal yields, prices are going to be stressed and financial pressure could be very extensive by the fall of 2015.

I have stressed the importance of pricing a significant portion of the expected 2014 crop, as well as upwards of 50 percent of the

MARKET OUTLOOK

A smart marketer realizes these market tendencies and has prepared himself to take advantage of opportunities, rather than only accept what comes.

While managing the spread to capture carry, sell deep-out-of-the-money puts from September to October. Maintain the short position but try to add value by selling deep-out-of-the-money nearby puts for time value decay. Objective: Net a 2 cent gain from October 2014 to April 2015.

SOYBEANS: Old crop soybeans have continued to firm all spring under the constant buying pressure of China. Even with export shipments coming to the U.S. from South America and China releasing some of its national grain reserves, old crop prices have remained strong.

expected 2015 crop via in-the-money puts. As the market rallied, puts should have been rolled up to improve the bottom line. This is not allowed to cash sellers or futures sellers unless they buy calls. To offset the time value cost of long puts, focus on selling deep-out-of-the-money nearby puts on corrections to pay for the premium for time value decay.

Expect carry to come back into the market. This is why I have suggested rolling all short futures or long puts back into the September 2014 corn contract at a 4 cent inversion in late April to early May. Hold the September to expiration, and then roll to the December to capture carry. In fact, if anyone sold their expected 2015 crop, I recommend holding all short positions in the September 2014 contract rather than selling the December 2015 because of the lack of carry.

With the jump in planted acres, many got bearish on new crop soybeans. Estimates for carryover doubling to over 300 to 400 bushels caused many to sell a significant amount of new crop inventory below $11.50.

With the recent rally above $12.75, all sellers were hurt. However, it must be pointed out that the producer who bought puts and rolled them up was the only seller able to get some of the $1.50+ rally that caught us by surprise.

I still believe soybean acres are above the March estimate.

I suspect the market will be very erratic and overall trend lower into fall while it transitions from a tight old crop to an abundant new crop [once we know we have the acres, yields are confirmed above at least 42 bushels per acre, and South American soybeans finally start to really hit the U.S. marketplace]. The market posted a pre-Memorial Day high; I believe it will be very difficult for November 2014 soybeans to crest unless we see a solid yield reduction.

Recommendation: Have a floor under 100 percent of expected 2014 soybean crop by using in-the-money puts. If the market rallies, roll up the puts. This strategy is preferred to selling cash or futures until we get past early July.

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MARKET OUTLOOK

Have a floor under 100 percent of expected 2014 soybean crop by using in-the-money puts. If the market rallies, roll up the puts. This strategy is preferred to selling cash or futures until we get past early July.

In regard to selling expected 2015 inventory, I would not be against getting started—sell at least 25 percent above $12 in November 2015 contract.

WHEAT: While there was some excitement with wheat prices from February to April because of dry conditions in the U.S. wheat production areas, as well as the uncertainty of wheat production in the Ukraine, the bullish fever has ended. How steep will the price decline be as harvest develops?

While I am not especially bearish below $6, there is limited reason for fundamental excitement.

It is time to reap the rewards from strong selling earlier in the year. If anyone is short, focus on maintaining the position, capture carry, and get prepared to start selling puts to add value to the bottom line as fall nears.

What should be done if a large percentage of the crop is unsold? I really think producers have to take their guidance from price action outside the wheat complex. If the corn and soybean complexes confirm supply, wheat prices will slide. So they have to decide – sell off the combine or store well into 2015. Frankly, I think the odds are getting stacked against a strong price rebound. In fact, prices will likely drift lower and stagnate. Storing is oftentimes a losing situation over time. I prefer to sell off the combine and then focus on some type of speculative reownership later this fall once the corn and soybean complexes have confirmed a low.

CATTLE: This complex is in a primary supply bull market that 7

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cannot be resolved quickly. Overall, the herd size is low. Weights have been pushed to levels where packers do not want to go above. I see limited ability to increase the domestic supply of high grade beef product. Granted, we can import; but it is more grass fed and it is not cheap. It will be up to demand to ration through higher prices. How long and how high will prices have to move before domestic and export demand is rationed?

Aggressive selling should be limited.

Focus on flexibility to react to higher price; being long a put is preferred 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.

to selling cash or futures for most of 2014.

HOGS: How severe will the supply chain be impacted because of the piglets loss? The USDA has suggested numbers that the trade believes are underestimated. This will be the big story in the June and July reports as we move into August. I have no special knowledge, but I am guessing there is a major hole ahead for the hog complex from July to September. I suggest using any exceptional strength during this time period to get aggressively positioned for the eventual correction in hogs.

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.

LEGISLATIVE MATTERS

Emphasis remains on ensuring mindful regulation rather than overregulation in areas such as financial compliance, environmental regulation, and immigration. We are also very aware that our Michigan congressional delegation will be changing significantly in the 2014 election; as a consequence, communication about our industry and interests will be necessary to recast based on election results.

Legislative Matters GreenStone continues to work collaboratively with its diversified agricultural partners to amplify the common collective interests which are important to the success of our agricultural and rural territory.

The communication tools developed under the leadership of your board of directors and implemented through employee operations continue to shoulder importance and bear fruit from the effort. In an era where the majority of the population resides in an urban environment and is more aware of food issues and sustainability, the practices of agriculture warrant constant communication and outreach.

Toward the effort, there are many matters for which GreenStone maintains active engagement. Both on the federal and state legislative sides of the legal equation, GreenStone’s board, legislative/public policy committee, and management team maintains regular communication and interaction with elected officials and industry leaders.

Current issues involve many topics, some of which are an outgrowth of the recent Farm Bill. Many of the implementing regulations are now being written, and as they are developed our input is heard through dialogue with elected legislators.

Meetings have been held with Reps. Kildee, Camp, Walberg, Upton, and Benishek, along with Sen. Stabenow, to discuss the importance of our GreenStone cooperative in our marketplace.

Other federal issues in the GreenStone dialogues that remain of interest include Farm Credit Administration and Consumer Financial Protection Bureau regulation of products and services, U.S. Department of Agriculture programs, pork industry disaster relief for the Porcine Epidemic Diarrhea Virus, and the Environmental Protection Agency Clean Water Act. Michigan and Wisconsin state issues are dominated by infrastructure challenges, including road funding, implement husbandry (Wisconsin), and delivery of energy in rural areas.

Other emerging issues where we have offered vocal interest include minimum wage legislation, wolf hunt regulation (Michigan), and the reoccurring issue on invasive swine.

GreenStone’s leadership works diligently with our agriculture partners to examine these issues and to understand the dimensions of their impact.

Constant, consistent and collaborate communication with other key stakeholders has allowed for a strong, unified voice of agriculture to be heard in purposeful ways. This effort makes for meaningful awareness and greater understanding by decision-makers. When decisions are made, we believe that your GreenStone interests are on the table for consideration and without unnecessary compromise.

Supportive of that effort are the Political Action Committees (PAC) that the board of directors, employees and many member/borrowers are supporting with voluntary personal financial contributions. Read the full PAC update in the PAC Progress article on page 17. Our voice will not be clear and will likely be missed without this generous support.

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NEWS UPDATE

NEWS UPDATE SUMMER 2014 A Pledge of Support with Hantz Farms GreenStone and AgriBank recently announced a unique and exciting partnership with Hantz Farms in Detroit, Michigan.

John Hantz, a Detroit resident and founder owner of Hantz Farms began working with city leaders in 2009 to make his dream for the world’s largest urban farm a reality. After first being met with skepticism, John successfully worked with the city to acquire 1,700 vacant lots. Now, John and his team are working to transform a 1 square-mile area on the city’s eastside by removing residential garbage and blighted structures.

This partnership is a natural fit; as members of the Farm Credit System, GreenStone is dedicated to a mission of providing sound and dependable credit to farmers, regardless of size or location. Through this newly forged relationship, GreenStone and AgriBank have an opportunity to educate the next generation of urban residents about the importance of production agriculture, the vast career opportunities within the industry, and the mission of the Farm Credit System.

The Hantz Farms venture involves facilitating the exploration and development of innovative entrepreneurial opportunities in urban agriculture, 9

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leading to an opportunity to engage and educate young, beginning and small producers in this emerging urban market about the financing opportunities available to producers through GreenStone.

Volunteering to Make an Impact On Saturday, May 17, following the successful clean-up of a portion of the mile area, more than 130 GreenStone volunteers joined over 1,000 others for a day of community development coordinated

by Hantz Farms. Together, we planted some 15,000 mixed-hardwood trees, transforming the area into a woodland.

“I am very proud of the commitment of GreenStone employees to get involved and make an impact through outreach and community service,” said GreenStone President and CEO, Dave Armstrong. “Our involvement with Hantz Farms specifically allows staff to bring together rural and urban life, and work hand-in-hand with the neighbors and surrounding communities to positively impact this beautification transformation.”

A group of the 130 GreenStone volunteers gather before departing East Lansing for the planting in Detroit.

Trees were selected

by Hantz Farms for this area over other forms of agricultural production due to the limited care they require, aesthetic enhancement they provide for the neighborhoods, and their suitability to the varied soil types found in this urban Dave Armstrong, GreenStone area from years of miscellaneous fill President and CEO, plants one of the 15,000 trees on May 17. dirt used in different development stages.

In the meantime, John and John is an entrepreneur and his team will care for the understands that, to create trees and look for other any kind of sustainability, ways to use what they the venture needs to be have started to engage profitable at some point, neighborhood residents in which is why his plan efforts that will help educate includes professionally them about agriculture managing the trees to and the possibilities it optimize their financial can present, keep up the return over time. This may appearance and safety of include using some of the their neighborhoods, and trees as nursery stock, most importantly, provide sugar maples for syrup, and the residents hope for a producing lumber from the better future. suitable varieties.

NEWS UPDATE

Ready for Peak Season

apples, and peaches, Mike has plenty of farm to cover.

As we transition from one season to the next, Originally verified in 2006, cold to warm, the agriculture industry begins VanAgtmael believes MAEAP moving at full speed to keep up with the crops. verification is a great way to highlight his farm. “Becoming verified One way to make sure the farm is ready made it possible for us to move forward for peak season is to make use of the in the direction we needed to go and Michigan Agriculture Environmental to have our actions document that. It is Assurance Program (MAEAP). MAEAP is also a really good fit with the food safety a voluntary program that is designed to policies we work with, and gives us that reduce farmers’ legal and environmental extra assurance,” explains VanAgtmael. risks. By having the program completed New to VanAgtmael’s farm, as well as in one or more of the four systems, many farms throughout the state, is the farmers can assure a great harvest season “new” MAEAP sign. It is made of a heavy with the knowledge needed for great duty and reflective material that makes stewardship. it longer lasting and easier to see. Also One farmer in particular took the time included in the redesign is the addition out of his busy schedule to give an inside of the Pure Michigan Agriculture logo, look on a MAEAP verified farm and why which proudly displays the linkage with he believes the program is successful. the Pure Michigan campaign. These signs are available at no cost to any MAEAP Mike VanAgtmael, an asparagus grower verified farm. in Hart, Michigan, spent most of May picking from his third generation farm.

Almost reaching 500 acres of asparagus,

“I certainly encourage everyone to go forward with MAEAP verification. The

TECH TIP: Smartphone Security • Treat your smartphone like it is your purse or wallet by keeping it organized and being mindful of what you store in it.

• Always use a passcode to secure your phone; this will keep unwanted hands from gaining access to your personal information.

• Turn on the “Find My Phone” feature for Apple devices or download a similar application for Android devices. These applications allow you to track your device and wipe its content if it is permanently lost or stolen, preventing anyone else from accessing any private information stored on your phone. Using strong passwords for your Apple or Google accounts will help secure this feature.

• If you misplace your smartphone, treat the search process with the same urgency as you would your purse or wallet. Also consider what credit card numbers or other information might be cached on your lost smartphone and take appropriate action such as calling your bank to have new cards issued.

process is very easy and most of the things needed for verification, growers are already doing,” said VanAgtmael.

To get started with MAEAP, attend an educational meeting or contact your local conservation district. Upcoming events and contact information can be found on the MAEAP website, www.MAEAP.org.

Provided by the Michigan Department of Agriculture and Rural Development

CALENDAR OF EVENTS JULY [4] Offices Closed In Honor of Independence Day [22-24] MSU Ag Expo East Lansing, MI www.agexpo.msu.edu

SEPTEMBER [1] Offices Closed In Honor of Labor Day [5-6]

reat Lakes Logging & G Heavy Equipment Expo OSHKOSH, WI www.timberpa.com

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SUMMER INTERNS

GreenStone Welcomes Summer Interns GreenStone has welcomed seven student interns for the summer, providing each with an opportunity to sharpen their skills in their respective career field. All seven of the interns are based in our East Lansing, Michigan headquarters.

Currently in its fifth year, GreenStone’s internship program is designed to provide college students with real-world experience to coincide with their education. Students take part in the same hiring process as our full-time employees, applying online to their desired position and going through the complete evaluation process. Intern selection is based on experience and aptitude, with an emphasis on performance in the classroom, extracurricular activities, and involvement in the community.

This summer’s intern class includes one junior and six seniors with a variety of backgrounds and interests in the agriculture industry. Each intern will work approximately 14 weeks in their position before returning to school for the fall semester. In addition to real-world experience in the agriculture industry, GreenStone internship positions are also paid positions with the company.

ADAM BOES Title: Capital Markets Intern Hometown: Holland, MI College: Grand Valley State University Major: Finance and Marketing Personal internship goal: I hope to gain experience and learn about the farm credit services industry.

ABBY CARPENTER Title: Regional Sales Intern Hometown: Adrian, MI College: Michigan State University Major: Agribusiness Management, emphasis in Agronomy Personal internship goal: I am hoping to gain an understanding of the Farm Credit System and be able to work in the industry in a professional setting.

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JOSHUA JORDAL Title: Credit/Audit Intern Hometown: Haslett, MI College: Ferris State University Major: Finance Personal internship goal: I am hoping to learn about the Farm Credit System and different positions available for finance professionals in agribusiness.

JUANA LOPEZ Title: Training and Development Intern Hometown: Oaxaca, Mexico College: Michigan State University Major: Finance, with an emphasis in Economics Personal internship goal: I hope to gain real world experience in a professional environment. Also, I would like to understand and be

Front row, left to right: Abbey Carpenter and Juana Lopez. Middle row, left to right: Kelsy Vanderplueg and Joshua Jordal. Back row, left to right: Adam Boes, Daniel Score and Matthew Perry.

exposed to the different opportunities within the organization.

MATTHEW PERRY Title: Information Systems Intern Hometown: Laingsburg, MI College: Ferris State University Major: Computer Information Technology Personal internship goal: I hope to learn more about the corporate information system environment.

DANIEL SCORE Title: Information Systems Intern Hometown: Ann Arbor, MI College: Michigan State University Major: Media and Information

Personal internship goal: I am looking forward to learning more about the type of technology that is used in a professional business setting along with new programming languages, and working in a team environment.

KELSEY VANDERPLOEG Title: Regional Sales Intern Hometown: Kalamazoo, MI College: Michigan State University Major: Food Industry Management, with a specialization in Agribusiness Management Personal internship goal: I am hoping to gain knowledge about the Farm Credit System.

FFA INVOLVEMENT

GREENSTONE’S FFA INVOLVEMENT GreenStone is proud to partner with the Michigan and Wisconsin FFA programs and lend support to helping educate the next generation of agricultural leaders.

Armstrong. “Everyone at GreenStone is proud of our longstanding commitment to this worthwhile organization.”

“FFA programs equip students with valuable life skills that can be used in and out of the workplace and empowers them to succeed,” said GreenStone President and CEO, Dave

GreenStone participated as a gold convention partner of the Wisconsin State FFA Convention and northeast golf outing hole sponsor. The four-day convention event offered a strong educational and career-focused component and equipped youth for occupations that will help keep the agriculture, food and natural resource industries vibrant.

Pause for Applause GreenStone’s executive vice president and chief credit officer, Paul Anderson, has been appointed to the Michigan Strategic Fund (MSF) board of directors

by Gov. Rick Snyder. MSF was created in 1984 and has the broad authority to promote economic development and create jobs. Paul comes to the board with more than 30 years of experience in the Farm Credit System, and his leadership will serve the board well. Congratulations, Paul!

Thank you to everyone, especially the following GreenStone customers, for hosting an event to connect agriculture and the community!

• Cook Dairy and Sonrise Farms: Family Fun at the Farm; Westphalia, MI • Crandall Dairy Farms: Breakfast on the Farm; Calhoun County, MI • De Grins Oer Dairy Farm: Breakfast on the Farm; Mecosta County, MI • Lee and Diane Kruse: Breakfast on the Farm; Oconto County, WI • Pagel’s Ponderosa: 2014 Ag Career Days; Kewaunee, WI • Quandt Dairy Farms: Annual Michigan Farm Bureau Dinner on the Farm with Congresswoman Candice Miller; Sanilac County, MI • Uphaus Farms: Breakfast on the Farm; Washtenaw County, MI

As a distinguished star partner with the Michigan FFA Foundation, GreenStone’s contributions provide premier support to many of the state events benefiting youth, including the Michigan FFA State Convention, youth leadership development events and skills contests, alumni initiatives, and agricultural educators’ development.

Michigan Agriculture Heritage License Plate Did you know, when you purchase the redesigned Pure Michigan Agricultural Heritage vehicle license plate, a portion of those fees directly benefit Michigan FFA programs?

With each new plate purchase, $25 goes back to the Michigan FFA Foundation, as well as $10 of each renewal fee. Visit your local Secretary of State office or go online to www.michigan.gov/SOS to purchase yours today!

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YBSF FEATURE

NEXT GENERATION BRINGS NEW ENERGY

By Jennifer Vincent Kiel As a teenager, Troy Sellen would take the seat on a tractor for field work, but was only vaguely aware of the four-legged critters on his parents’ dairy operation that also included some steers. His ambitions have always been in agriculture. As a high schooler he was involved with FFA, worked as a relief artificial insemination technician and hauled milk part time, but had little interest in dairy.

It was his Oconto Falls High School agriculture instructor, Eric Larsen, that prodded him to look further into the opportunities on his parents’ Wisconsin farm, just north of Green Bay. “I wasn’t planning to go to college, but he encouraged me,” Troy says. “He wanted me to get away from the farm and put things in perspective and to really look at the dairy side of the business. It was the best advice given to me in my life.”

Opposite page: Troy and Patty Sellen both have a passion for the dairy industry and research new technology options thoroughly before making the move toward implementation.

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It was those four years at the University of Wisconsin– River Falls that launched his interest in dairy.

“I really took interest in dairy cattle, just as Eric Larsen had predicted,” Troy adds. “It was more intriguing and challenging than I had thought. My dairy science classes opened my eyes to the real potential on the home farm.

That’s when I realized that if you put your head into it and make smart decisions, it can be a fruitful, rewarding career.”

The summer before graduating college, Troy interned at a large dairy farm in western Wisconsin. “I learned the practices and principals that I employ on the farm today,” he says.

With a dairy science degree in hand, Troy returned in 2006 to the homestead at Valley Line Dairy in Oconto Falls. Now, Troy, 30, and his wife, Patty, 29, farm 750 acres of corn and alfalfa in partnership with his parents, Jeff and Brenda.

“Since Troy was old enough to dress himself, he has had a great interest in the farm, and it still shows,” Brenda says. “He has been very dedicated since coming home from college and has made some very important and great improvements to this farm.”

YBSF FEATURE

In the beginning The original 30-acre farm was established by Troy’s grandfather, Calvin, in 1948. He married Dolores two years later and they tended to 18 cows, as well as a few chickens and hogs. “It was the usual farmstead back then, and they even grew pickles for a short period,” Troy says.

doing tillage and planting, they now hire custom harvesting.

The farm was slowly expanded, outbuildings were added and Jeff and Brenda joined the operation, which was now focused on dairy and steers.

With the drop in cull rate, cow numbers grew. “Our bred heifers are now custom-raised—going to another farm at 7-8 months of age and returning home two months prior to calving.”

A free stall barn was added in 1991, as well as a double-eight herringbone parlor. About 40-60 head of steers were on one side of the barn and about 150 milking cows on the other. “It pretty much stayed that way until I returned from college,” Troy says. “I didn’t realize it at the time, but I have to give my parents credit. That was a scary time for them with the last of their three children leaving the farm. They had to rely 100 percent on hired labor. It must have been a bit difficult to encourage me to leave, but not once did they say ‘if you want to farm you need to stay and help.’ Instead, they made a big investment for me to get an education.”

“We looked at the room for dry cows or springing heifers and the only area we had was shared by sick cows,” Troy explains. “So, we constructed a dry cow/springing heifer transition barn that is sand bedded with six maternity pens.

It’s more efficient with less calf mortality.”

With their current facilities now maxed out, they are marketing cattle for dairy replacement. Last year they sold 55 head for dairy.

Troy does all the artificial insemination on farm and is very genetically focused with the herd of 320 Holsteins. “There’s

Troy returned home as an employee of the farm with no real specialty. Gradually, he took on some of the managerial duties and Jeff and Troy discussed changes. “I think, by having me home, there was a level of confidence in making changes.”

Together they identified shortcomings in animal comfort, handling and longevity in the original free stall barn. In 2009, they converted to sand bedding from saw dust.

“We soon learned that our manure handling system was not designed to handle sand, so that meant additional maintenance,” Troy says. “The barn cleaner bushings needed to be changed monthly, not annually. Plastic liners in the gutters used to last about five years; now they need to be changed annually. But, it was still the best decision —our cull rate, one year alone, had dropped 18 percent.

It was a huge change for us, resulting in more production, lower somatic cell count and less mastitis. I know it was something dad always wanted to do, but was reluctant to make the investment without knowing if another generation was going to be on the farm. My sister is a nurse and my brother is a commercial pilot.”

One of the first things Troy did upon returning to the farm was address an overcrowding issue in the barn. The main focus of the operation became the dairy. “We are here for dairy,” Troy says. “We sold our steers to focus solely on the dairy.”

Troy went to work identifying issues holding the herd’s progress back. In addition to switching to sand, new daylong lighting was installed, as well as fans and sprinklers.

Feed bunks were replaced with head locks and, while still

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YBSF FEATURE

a couple of Brown Swiss mixed in for diversity and headache,” Troy adds with a chuckle. “We have started breeding for type and longevity and feel that’s been paying off—we’ve just begun to tap the benefits.”

In the future, Troy plans to expand the genetic side of farming and is in the early stages of investing in embryo transfer to see if it is feasible for a commercial herd.

Troy and Patty do not go away often, according to Brenda, but when they do, they bring the farm with them, so to speak. “They watch the farm cameras on their cell phones to keep a close eye on everything—employees and us included,” Brenda says. “Jeff gets text messages from them all the time to watch different things. It’s actually funny, and we joke about it all the time.

Troy has a good head on his shoulders and spends a lot of hours researching his projects before he moves forward on anything. It’s wonderful to see so much new energy in this young couple. They are a great addition, working very hard and keeping on top of everything.”

Dan Kaufman, GreenStone’s Financial Services Officer based in the Coleman, Wisconsin office, is very impressed with the farm management and the Sellen family in general. “They are very forward thinking and investigative,” he says. “They really strive to advance with the industry. I enjoy working with them as they have a great sense of humor, have fun farming, and they take a lot of pride in providing safe and quality food for the rest of us. They are the type of family that you want representing the agricultural industry.”

Love in the air It was not the fact that Patty grew up eight miles from Troy. It wasn’t that she too graduated with a dairy science degree from University of Wisconsin— River Falls (in 2008), or that she grew up on a dairy farm operated by her parents Alan and Dawn Riegert. No, it was a Friday night fish fry at the local 15

PARTNERS Summer 2014

watering hole that brought them together in 2009. They were married three years later by someone special to both of them—Eric Larsen.

Patty had shown many cattle throughout the years at the county fair and became friends with the dairy superintendent at the fair, who just happened to be Eric Larsen. “I’ve known him since I was 10 years old,” Patty says. “He encouraged me to go to River Falls, which I did after getting an accounting degree from Northeast Wisconsin Technical College in 2005.”

Larsen got ordained and not only married Troy and Patty, he also married Patty’s sister and husband.

After college, Patty worked on her parents’ farm that included tasks like operating tillage and harvesting equipment, and feeding the milking herd.

She also worked as a dairy nutritionist at Land O’Lakes through the local co-op for almost two years as the young stock calf specialist.

So, when Troy’s mother needed surgery in 2010 and help in calf feeding, Patty was a natural fit. She’s been at the farm now full time since 2012 doing the majority of the calving, as well as dry cow vaccination and assistance with milk cows.

Last November, an automated calf feeding system was installed. “The calves are allowed to feed on their time schedule; through radiofrequency identification, we are able to track drinking speed, number of feeding attempts, and feed consumption,” Patty says. “It’s working very well, giving me flexibility on when

STRAIGHT TALK

Q:

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

Troy: “ A farmer, but I didn’t know what that really involved.”

Patty: “ A secretary.”

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

Troy & “When I got into the dairy science Patty: classes at UW-River Falls.”

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

Troy: “ My ag advisor, Eric Larsen, and

my parents for certain; they are our guides here every day.”

Patty: “ Our parents.”

Q: What is the biggest challenge

for young, beginning, or small farmers today?

Troy: " A large capital investment is

required to even remotely begin operating a dairy farm."

Patty: “ In addition to what Troy said, when there are generations involved, you need good communication.”

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

Troy & “Do not be afraid to ask

Patty: for advice. Don’t ever assume your idea is always right. Find

a good springboard to bounce ideas off from, and get an honest and experienced response”

YBSF FEATURE

to manage the calves, but it has been a huge learning curve.”

Troy and Patty have brought many changes to the farm and are grateful that Jeff and Brenda have not balked at entertaining those decisions. They are now in a partnership together.

“Jeff’s parents worked hard on this farm to get it started,” Brenda says. “Jeff and I have had many years invested also to keep this farm going. Every extra penny was invested right back into this place.

The most important thing for parents to remember is to pass the farm down in a timely manner and do all your legal paperwork so the whole experience is a smooth transition. Be ready to accept new ideas, and improve and modernize as needed. Sometimes it’s hard to let go of the old ways things were done and accept changes as Jeff and I had to learn, but change is good.”

Troy says his parents have always been very supportive. “They fully trust us to do the research and also hold us accountable,” he says. Patty adds, “We look at other operations, tour a lot of places and involve the parents in that process. It’s about communication and understanding. They offer guidance and experience, but have never stonewalled a project.”

analysis. Dan Kaufman has been supportive of us maintaining education and attending seminars. Patty is a member of the Dairy Calf and Heifer Association. When I mentioned a workshop, they offered to pay a portion of her registration fee.”

The Sellens are relatively new customers of GreenStone, becoming clients in 2010. “Our other lending institution was not ag based and did not have the grasp of yearly cycles of the farm checkbook,” Troy says.

“GreenStone has a firm grasp of what is normal in the industry. We had an off-farm accountant that somewhat understood farm finance, but not as much about tax implications. We started talking with Ralph Wesoloski, Senior Tax Accountant at GreenStone, and made a switch to them. Ralph is really indispensable with year-end tax advice. It started with tax planning, and then we switched entirely—GreenStone is our one-stop financial manager from bookkeeping to loans.”

The Sellens are considering new buildings, although land availability for manure and feed is tight in the area. “We are in a prominent dairy location, so there are challenges,” Troy says. “Right now we’re not maximizing

parlor potential and that’s the driving force for considering expansion. My parents are comfortable with the current debt load. So, we will have to see where the industry is heading. We don’t want to get behind. We want to be proactive with a successful business model.”

This spring, an additional electrical service was added to accommodate possible future expansion. The Sellens plan to remodel and double in size their manure storage system. Last year they added a large asphalt pad for feed storage and will double that size again this summer. “We’re looking for more acres to build up inventory.”

Cow herd expansion has not happened yet, but the Sellens are doing the groundwork to facilitate stress-free management if they do get there. For now, the Sellens will continue milking their 320 cows three times a day, and Troy will continue to look for ways to be even more efficient.

Below: Patty works with the automated calf feeding system which tracks drinking speed, number of feeding attempts, and feed consumption.

That progressive spirit shines through in that Jeff and Brenda wanted to start the farm transfer process at a young age. “We sat down with a farm lawyer and started that process when I was 28 and dad was in his mid-50s,” Troy says. “It’s a 20-year process for tax purposes and for generational comfort and fairness. They’ve been extremely generous and made this as easy as possible.”

Although not formal, Troy has another partner—GreenStone Farm Credit Services. “They have been an exceptional business partner with their advisory team,” Troy says. “In the last five or six months, we’ve been working with them on an expansion model, sensitivity analysis, and profitability

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PAC PROGRESS

Where are they now...

Troy and Bobbie Garnant –

How has your business changed since 2005?

Since 2005, our farm and business have taken some new directions.

Due to customer/industry demand, we began custom soybean treatment and delivery direct to producers in 2007. We started selling crop insurance in 2008 as an added service to all producers.

A new 6000 sq. ft. heated shop was built in 2006. Due the hailstorm of 2008, we built a new house in 2009 and retired the old farm house. In 2011, we finalized a long time goal and purchased a 510-acre farm that Troy’s parents started share cropping more than 40 years ago.

Any new purchases or improvements?

The technology with equipment is constantly changing and it is important to try to stay up to date. We have made the same

PAC Progress GreenStone actively participates in three Political Action Committee (PAC) efforts: the Farm Credit PAC, the MI GreenStone PAC, and the Wisconsin Farm Credit PAC. As we work to strengthen the voice of agriculture and advocate in support of our members and your operations, these PAC contributions take on a new and higher demand.

Leadership and participation by the GreenStone family of relationships – staff, directors, and members – is critical, particularly as populations shrink in our rural agricultural territories.

During the recent effort to create awareness among our members for voluntary 17

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contribution participation in the MI GreenStone PAC, we were pleased to receive wonderful and meaningful support in the amount of more than $18,000 from over 340 members. This has, and will, provide a meaningful sum that we may spread to candidates and elected officials that are customers, farmers or significant key leaders who share the importance and value of agriculture, or who otherwise need to gain a greater appreciation

upgrades that most producers have today, which includes the use of GPS, grain-monitoring systems, and variable rate. To enhance production and efficiency, we have purchased strip tillage and vertical-tillage equipment.

Have your children become more involved with the operation?

Our two sons are significantly more active in our operation. When we all work as a team, it is such a wonderful feeling and sight to watch. There is no guarantee either one will take over the business down the road because of their young age, but we feel fortunate that we have this time to work together and we enjoy every minute of it.

What advice do you have for others looking to break into farming?

It does not matter if you are breaking into the business young or old. It is important to keep your goals in mind and not to lose sight of what you want to achieve while still being realistic. For us, owning our own farm was one of the goals we set, and we have worked very hard to achieve this. Working with the farm owner on a personal and business level for the past 40 years gave us the opportunity to purchase the entire farm instead of going through the longer auction-process. Most importantly, constantly keep your goals in the forefront along with the direction you are heading, will help you succeed in anything you do.

of agriculture through our educational efforts with new and urban legislators.

Contributions from the MI GreenStone PAC are determined from a collective analysis by the board of directors, legislative/public policy committee, and the executive management team in consultation with outside experts and other agricultural leaders.

The Wisconsin Farm Credit PAC is currently further defining their strategy on how we will collectively make a significant difference, as the state regulations may have some impediments for growth.

This is accomplished

cooperatively with the three other Farm Credit associations serving Wisconsin territories.

Regarding the Farm Credit PAC, which makes contributions to federal legislators, the board of directors and management are currently going through the discernment process to identify those leaders that need to hear the collective voice of agriculture and will benefit from our support.

GREENSTONE'S STORY

GREENSTONE STORY: THE WAY WE DO BUSINESS Imagine, your 17 year old daughter has selected the perfect gown, her hair is twisted precisely among a princess crown, the flowers are a meticulous match, her jewelry sets it all off, and her eyes sparkle in delight…and then her prom date doesn’t show up.

Sadly, that could be your business.

You pick a lender promising it all; you take all the steps—and the initial investment—to put your dreams and business success in motion, and when it is time for the lender to deliver on their promise, they change their mind. They might say it is too risky, their lending standards changed since you talked a few months ago, or even that their corporate office has decided to get out of agricultural lending again.

Then, when you try to walk away, back to what you now realize is truly the greener grass, you find a huge pre-payment penalty hidden in the small print. Though their excuses may go on and on, the reality does not change. You need a partner who not only provides you a customized solution to your needs, but who will stand by their word and will not walk away when the trend winds change direction.

Unfortunately, we have seen this happen to some of our customers during the ups and downs of the agriculture industry. Banks see the short term profit potential and dive into agricultural lending without understanding your business, and the cyclical cycle that comes with it. But with more than 98 years of experience, that is not the case with GreenStone. In fact,

we have competitive rates, offer unique and customized terms, thrive for simplicity in the process, provide superior customer service, and stand strong and committed to agricultural lending through the decades.

We realize each of our competitors may be touting a special rate, a personal focus, or a competitive rate structure.

Yet, we also know there is one thing at the center of every decision here at GreenStone that sets us apart, and that is our focus on your experience. It is all of the things everyone else is offering, and so much more, wrapped up and supported by a century of foundation and stability, and it is all engrained into the way we do business each day. The product, the terms, the experience, the efficiency, the process, the solution, the service…each of them is important, but all of them together is really critical.

Delivering a superior customer experience is why we have thousands of relationships spanning well into and beyond their silver

anniversary. And those relationships do not stop there; they blend into the next generation and the one after that. Your road grows smoother and straighter when you have reliable and trusted partners helping you maneuver it.

GreenStone will continue to drive ahead with you, providing you with the customer experience you deserve; and will be there when you expect us — no unexpected speed bumps or missed dates!

Candid Comments...

GreenStone FCS, "Thank you for sponsoring the Great Lakes Regional Dairy Conference. Your helping hand is greatly appreciated, and does not go unnoticed. We look forward to partnering with you in the future!”

Have something to share? Submit your "Candid Comment" to: marketing@greenstonefcs.com

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DIRECTOR'S PERSPECTIVE

Director’s Perspective In the last issue of Partners, we shared the announcement that Bill Stutzman, a GreenStone board member since 1987, had been re-elected to the AgriBank board of directors.

Though Bill is no longer able to serve on GreenStone’s board of directors because of the new AgriBank requirement restricting dual board representation, he is pleased to continue representing GreenStone customers through his role on the AgriBank board.

What does that mean? We asked Bill to help answer this question by explaining how AgriBank fits within the overall Farm Credit System, telling what AgriBank provides to GreenStone, defining his role on the AgriBank board, and sharing a few thoughts on how GreenStone and AgriBank work together to benefit our members..

Bill Stutzman, AgriBank director Under the Farm Credit System’s unique cooperative structure, GreenStone is one of 17 Farm Credit associations that own AgriBank.

AgriBank is one of four wholesale Banks in the System and provides key solutions such as lending, risk management, and retail bank support to GreenStone and the other affiliated associations in its District.

The purpose of the AgriBank board of directors is not much different than that of any other board. All boards of directors are challenged to put in place policies that will ensure the missions of those particular

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businesses are carried out as efficiently and effectively as possible.

The AgriBank board of directors is made up of 16 elected directors, and two appointed directors, from the 15 states it serves. The AgriBank board includes five committees: risk, audit, finance, governance, and human resources. At this time, I sit on the audit committee where I have served as the vice chairman, and this past year as chairman.

One of AgriBank’s functions is to provide asset/liability management to GreenStone and the other affiliated associations. When a GreenStone customer asks for a loan, that customer has many options to choose from, ranging from a short-term loan of one year

to one extending out to 30 years, and about everything in between.

These loans may be fixed rate loans or variable rate loans. All of these options customers can select from are funded through AgriBank.

AgriBank primarily makes loans to its affiliated associations, which in turn make loans to the customers in their respective territories. Today, all of the money that is available to lend to Farm Credit customers is raised by selling Farm Credit bonds to investors all around the world.

This is done by the Federal Farm Credit Banks Funding Corporation (Funding Corp), located in Jersey City, New Jersey. The Funding Corp tells the Farm Credit "story" to investors to help give them confidence that investing in our bonds is a safe and sound place for their money. That can translate to GreenStone customers getting the lowest cost of money available anywhere!

Some of the loans that associations such as GreenStone make are larger than the hold limits established by the boards of directors of those associations. Therefore, an association could choose to participate, or share, a portion of that loan with other associations who might be interested; or, AgriBank could choose to take a portion of that loan as well to assist the association in managing its risk.

AgriBank also provides support services to many of its association customers. In certain situations,

DIRECTORS' PERSPECTIVE

THE FARM CREDIT SYSTEM

GREENSTONE MEMBERS

WI

it is more efficient for an association to contract with AgriBank for the provision of a service, simply because it is more cost effective to purchase this service from a third party, possibly AgriBank, rather than hiring and training additional staff to provide that service on its own.

AgriBank also offers the use of asset pools to those associations that are growing at a rate where they find it difficult to capitalize that growth on their own. The use of these asset pools is a benefit to both the association and

the Bank from a capital standpoint.

This allows an association to continue to grow when it has the opportunity, without the fear of being too low on capital to sustain its business, or have adequate reserves for potential loses.

The four Banks in the Farm Credit System exist to serve the 80-plus associations (GreenStone being one of them) that make up the System.

They provide the assistance and the funds necessary to keep the farmers and ranchers, and all of rural America, growing strong.

MI

GREENSTONE FARM CREDIT SERVICES

The Ballots are Counted...

Congratulations to the members elected to GreenStone’s board of directors and nominating committee.

Board Election Results: In voting Region 3 (southeast Michigan), Bruce Lewis from Hillsdale County was re-elected, and Wm. "Hank" Choate from Jackson County was also elected to join the board, each for a 3 year term.

AGRIBANK

In voting Region 4 (southwest Michigan), Darl Evers from Allegan County and Ed Reed from Cass County were both re-elected to serve 4 year terms.

Nominating Committee Election Results:

$

Region 1: Derek LeCronier from Bay County and Craig Merrell from Midland County

FEDERAL FARM CREDIT BANKS FUNDING CORPORATION

Region 2: Richard "Mark" Lauwers of Lapeer County, and David Thuemmel from Huron County Region 3: Larry Bush from Lenawee County, and Dennis Huehl from Washtenaw County Region 4: Lori Drozd from Allegan County, and David High from Cass County Region 5: Steve Bovee of Gratiot County, Mark Chaffin of Gratiot County, and Michael Rasmussen of Montcalm County

DOMESTIC AND INTERNATIONAL INVESTORS KEY OWNERSHIP

FUNDS

Region 6: J.P. Clover of Ionia County, Amanda “Mandy” Teachworth of Ionia County, and Eric Voisinet of Clinton County Region 7: Daniel Natzke of Brown County, Alan Tauchen of Shawano County, and Henry “Hank” Wagner of Shawano County In 2015, the directors for voting regions 5, 6, and 7 will be elected. If you are interested in running, please contact a nominating committee member from your region, or send an email to diane.rizer@greenstonefcs.com.

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GUEST COLUMN

considered them full-fledged employees.

Orientation and training were not part of their duties—doing the work was.

By: Barb Dartt, DVM, MS

INVESTING IN YOUR

A couple recent studies1 found that medium to large businesses spend 3-3.5 percent of annual payroll on employee training. Another study2 found that 88 percent of small and large businesses

TEAM Mark called this spring, excited that he had two new employees starting work in a couple days. Including these two, Mark’s farm employs five full-time family and non-family members. Both new hires had farming experience and were sorely needed to handle spring work. For this operation, it was important these two hires work out. I asked Mark what he had planned for their first day. His answer came slowly—it was clear he hadn’t thought much about it.

“Well, they’ll need to fill out their paperwork,” he said. “And they both have experience in the shop. I was hoping they could start prepping the 7630. That will give them a good reason to figure out how we’ve organized the tools.” I find Mark’s response pretty common across my clients—and in many small businesses, ag or non-ag.

Once Mark got his guys in the door, he

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provide some kind of continuing education benefit to employees. In contrast, Iowa State3 found in a 2011 study that 17 percent of agriculture employers offered a continuing education benefit. Of the employers that offered the benefit, annual cost per employee was $250, or about 0.7 percent of average payroll. In agriculture businesses, generally, investment in training and development is low. There are lots of reasons for this. Many farm businesses have grown rapidly and have more employees than in the recent past.

Managers tend to underestimate the complexity and experience it takes to exercise solid judgment (or common sense) in day-to-day farm work. And

GUEST COLUMN

thinking about employee development means owners and managers are working ON the business rather than IN it—and that is hard to fit in while getting the work done.

Mark’s approach is common, but represents a big opportunity. Increasing resources—both time and money—

M

invested in employee training and development can make you a more attractive employer. It can also help you develop entry-level folks into the higher level employees you will need in the future. So where do you start?

Why, at the beginning, of course.

Focus on your employees’ first hours and days on the job.

1

Orientation and Onboarding Orientation is a one-time event that happens on an employee’s first day.

It includes activities that familiarize an employee with their location, job and coworkers. Orientation can be conducted by the new employee’s supervisor or another employee who is welcoming and experienced. Activities could include:

employee is not fluent in English, use a translator. Onboarding then shifts to the employee’s direct supervisor and could include: • Review of the Code of Conduct or Employee Handbook • Expectations on things like cab cleanliness, what to wear, smoking or chewing policy, cell phone policy, and when to punch in or out

• A tour of the farm site and where they will work • Introductions to key coworkers

• Safety procedures like the location of fire extinguishers

• Explanation of things like:

• Machinery maintenance expectations

-Work hours and lunch time -Where they should park - How to punch in or record their time - Location of fields, names of fields, and/or maps - How to look up livestock information on the computer - Who they can call for help and important contact numbers Onboarding is the process of clarifying expectations and helping new employees understand the culture of your business. It takes place over time – likely weeks – but should be introduced within the employee’s first few hours on the job by a senior manager or owner. This initial session, which could last from 15-60 minutes, includes a welcome, brief overview of expectations, history and philosophy of the business, and finally, a short discussion on the future. If the new

2013 State of the Industry Report, American Society of Training and Development, January 2014 and The Corporate Learning Factbook, Bersin by Deloitte, January 2014

2

2013 Employee Benefits, Society for Human Resource Development, December 2013

3

Wages and Benefits for Farm Employees, Iowa State University Extension & Outreach, March 2012

As you can see, orientation is pretty easy to get rolling. It just requires being deliberate about showing employees the resources needed to do their job.

Onboarding, however, requires both preparation and consistency among owners and managers on the plan for new employees.

Agriculture businesses are amazing at adopting technology and tools that increase effectiveness. Consider onboarding and orientation two of those tools. They are not a comprehensive approach to training.

But they do represent a great start to an investment in your employees and, therefore, in the future of your business.

ABOUT THE AUTHOR

Barb is a partner in GROW: The Family Business Advisors. She is a family business consultant, working with farm families and management teams to help them keep their business healthy and the people happy.

Barb can be reached at 269-382-0539 or barb.dartt@growthefamily.biz The opinions stated herein are not necessarily those of GreenStone Farm Credit Services.

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3515 West Road East Lansing, MI 48823

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EXPLORE MORE THAN LENDING– We are more than a leader in agricultural financing, GreenStone also offers recreational land loans, with unique terms up to 30 years on unlimited acreage.

Take the next step toward owning the land you have always wanted and contact your local branch today.

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