Promoting the business success of our customers and the rural community
GreenStone FCS
CULTIVATEGROWTH SPOTLIGHT: ELAINE PALM
A Healthy Balance
Summer 2022
GREENSTONE STORY: Meet New President & CEO Travis Jones DIRECTORS' PERSPECTIVE: Trent Hilding & Marilyn Thelen
SUMMER 22 5 YBSF Feature. Elaine Palm, with her husband Rick and parents Jim and Sherrie Bristol, own Great Lakes Lamb LLC On their farm in West Branch, Michigan, they raise sheep and forages to feed them, plus sell hay to customers.
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23 GreenStone Story. After a nationwide search, GreenStone’s Board of Directors has named Travis Jones as our next President and Chief Executive Officer.
29 Country Living Feature. Cherie and John Shields and their sons had been leasing hunting land for years, but the owners sold it. Heartbroken, they started searching for the perfect property.
35 Tax Feature. Grady Auer's positive attitude has come in handy during some of the past events on his dairy, including multiple natural disasters. Through it all, Grady has successfully steered his farm in the right direction.
3 CEO Comments. A special note to customers…from outgoing CEO Dave Armstrong and incoming CEO Travis Jones! 11 Guest Column. Ownership…it’s a bit of a contradiction. On the one hand, we humans seem to get the concept as soon as a toddler can say, “Mine!” On the other hand, ownership as a distinct business role is often unnoticed in family businesses. 13 Market Outlook. Following the strong economic expansion achieved in the prior year, the U.S. economy has been contending with significant headwinds in 2022. 25 Directors' Perspective. As two new Directors take on the role of helping to lead GreenStone on the board of directors, they took time to share a bit more about themselves. 27 Legislative Matters. GreenStone was invited to participate in the first Farm Bill field hearing of the U.S. Senate Committee on Agriculture, Nutrition, and Forestry.
28 PAC Progress. The election year is ramping up...And the support team for agriculture is proactively working to raise awareness of agriculture policy issues.
33 The Active Vacation. Combining an active lifestyle with a love of traveling can create a very enjoyable and fit summer vacation. 39
Micro Farm Coverage. Micro Farm crop insurance provides a revenue safety net for all commodities, and allowable value-added products, under one insurance policy.
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Public Information Scams. Scammers have access to a treasure trove of public records. Public records are supposed to provide a means to promote government openness and transparency but they can be abused.
8 Agriculture Blog Brief 9 YBSF Resources 15 Member News 16 Election Results 17 Summer Interns 19 Behind the Scenes 20 Pause for Applause 21 GreenStone Scholarships
Publisher’s Note: It’s fitting this Summer issue of Partners is not only when we announce GreenStone’s member election results (page 16), highlighting GreenStone's cooperative process at its foundational structure, but also when we announce the next CEO of GreenStone (page 23) – selected by that elected board! To many, our cooperative may look similar to any other business structure. And that’s a good thing – that means our board and leadership team are in unison, working toward a shared purpose and business plan. When it comes to best practices, cooperatives are about as real as you can get – an organization directed by customers using the services and therefore are on the front lines of ensuring the cooperative is delivering the value expected. That value should be felt by all customers, and in this issue of Partners, we feature three of them! Young woman farmer Elaine Palm (page 5) farms with her husband and family and quickly realized they needed a financial partner with more agricultural understanding – they found it at GreenStone. Grady Aurer (page 35) shares how the cooperative's onestop-shop structure for financing, accounting and crop insurance and the expertise that comes with it has benefited him. The Shields family (page 29) is living their dream with their grown family thanks to GreenStone’s ability to simplify the financing of a complicated land parcel for the family. Whether it be providing governance over the cooperative operations, or partnering on a land purchase, customers are at the heart of GreenStone’s everyday actions. As you turn to page 3, you’ll find Travis Jones, who will transition into the CEO role after Dave Armstrong’s retirement on July 31, has that same vision for the future! I hope as you turn the last page and put this magazine down, you too feel confident in the value you experience working with GreenStone, and that your Board of Directors has ensured the cooperative is being lead to a successful future!
22 Candid Comments
Happy Reading!
22 Calendar of Events
– Melissa This newsletter is published quarterly for the customers of GreenStone Farm Credit Services.
31 Guest Column. With such a wide variety of activities to take part in during the summer months, there’s never a lack of places to go and things to do in our Great Lakes State.
31 Country Living Blog Brief
32 Summer Camping. Are you looking for relaxing getaway? Well, then camping is the perfect summer getaway for you and your family.
38 Crop Insurance News
34 Commodity Cuisine... American Lamb Burgers
37 Tax Calendar
40 Crop Insurance Calendar
Editorial Cassie Bowman Amber Echlin Melissa Rogers Amber Zabonick
Art & Design Hailey Andres William Eva
Partners GreenStone Farm Credit Services 3515 West Road East Lansing, MI 48823 800-444-3276 marketing@greenstonefcs.com
CEO Comments:
Two Sides to the Story A special note to customers…from outgoing CEO Dave Armstrong and incoming CEO Travis Jones! Parting comments from President and CEO Dave Armstrong:
its way over the next horizon.
As most of you know by now, I will be retiring from GreenStone on July 31 and would like to share some final thoughts and introduce you to GreenStone’s new CEO.
As of the end of June, GreenStone has over $2 billion of capital and allowance for loan losses to sustain it through troubled times; the portfolio has nearly an all-time low level of adversely classified assets of just 1.6% (this was as high as 50% in the 1980’s), strong earnings, growth, and a customer satisfaction score of 95% satisfied or very satisfied. Nearly every key performance indicator is at or near historical highs positioning it to return high levels of Patronage back to customers for the 17th year in a row!
First, time really does fly! I cannot believe where the last 41 years have gone. It seems the longer you live the faster it goes. Do your best to enjoy the ride (yes, even despite the myriad of challenges)! Also, do not take anything for granted, especially those who are close to you, good health (if you are blessed to have it), enough to eat, a roof over your head and, yes, even having a dependable, competitive, and responsible source of credit and financial services delivered by people who are professional, knowledgeable, and have a passion for the agricultural industry. For over 106 years the Farm Credit System (which GreenStone is a part of) has been there in good times and bad to provide the capital that fuels our nation’s agricultural industry. Without it, who would have provided the peace of mind farmers, ranchers, and other eligible borrowers have come to rely on (or maybe take for granted) for their operation’s credit needs year in and year out? As I end my career, I could not be more confident in the System or GreenStone’s ability and commitment to continue carrying out its mission over the next century. With abundant levels of capital and risk bearing capacity, dependable lowcost sources of funding, a laser like focus on its mission, and dedicated people who strive to adhere to our Core Four Values of Customer First, Do the Right Thing, Deliver Quality, and Get Involved, it is well positioned for whatever challenge may come
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This kind of performance year in and year out is the result of a focused and dedicated team effort. I have been blessed to have worked with some of the best and brightest people I have ever known and have absolutely no doubts they will continue to perform at a high level well after I am gone, because long term, consistently high performance is well beyond any one person. GreenStone’s next CEO is one of those people; I have been blessed to have worked closely with him since 2007. He is passionate about the agricultural industry and GreenStone with nearly 15 years as its CFO, making him uniquely qualified to lead GreenStone in the decades to come. I could not be more pleased to be handing over the reins to someone of his character and professional abilities. He has been a close advisor to me and someone whose input I sought before making key decisions. His humble, down to earth, approachable style and professionalism have earned him the confidence and respect of our Board of Directors as well as our 600 team members. It is my honor and privilege to introduce you to a valued colleague and friend, Travis Jones, as GreenStone’s next CEO! Congratulations, Travis!
Introductory comments from incoming President and CEO Travis Jones:
During my recent interviews with our Board of Directors, I kept repeating how I believe GreenStone is the best Farm Credit association in the country. (And when I say that, I really mean we are the best financial institution in the country!) No other Association can compare to the combination of our financial performance, our customer satisfaction scores, and our employee engagement scores. Nobody. We didn’t get here by accident. It starts with you, our customers, our members, our owners. You get up every day and work hard, feed the world and meet your financial obligations. No financial institution has the dedicated customers that we do. Then we have an extremely dedicated staff of 600 plus individuals that come to work every day to meet our mission of promoting the success of our customers and the rural community. We do it the “GreenStone Way.” We follow our Core Four Values, which starts with Customer First. We do the little things and the big things every day to be a dependable, competitive and reliable source of credit and financial services. Finally, we have an outstanding Board of Directors, our coaches, to provide guidance and support to our strategy and vision. GreenStone is a very special organization, and I am extremely honored to be succeeding Dave as CEO. Our management team tends to use a number of sports metaphors. Well, this feels a little bit like being named the starting quarterback of the New England Patriots after Tom Brady left. (It didn’t hit me until I typed this that their current quarterback’s name is also Jones.) With Dave leading GreenStone, we made the “playoffs” every year and won a handful of “championships”. Again, no other financial institution compares. It is very hard to explain how much Dave means to me personally and professionally. I may not have been hired at GreenStone 15 years ago without his support. Since that time, he has become not only my boss, but my mentor and my friend. I have learned something from him each day during my career at GreenStone. How he treats customers, how he treats GreenStone teammates and how he supports agriculture. His dedication to GreenStone and agriculture in the states of Michigan and Wisconsin is almost
impossible to match, yet all of us that have worked for him try. I know I wouldn’t have gotten appointed as the new CEO without his support, mentorship and guidance. Thank you, Dave, for everything! Come August, your GreenStone team won’t have Tom Brady. But I can promise you we will continue to block and tackle, move the ball down the field and score a lot of touchdowns for our members. We will continue to work hard everyday to make the “playoffs” at the end of the year and win a few “championships” along the way. Interest rates are going to rise, then eventually fall. The economy will slow and then grow. Input costs and commodity prices will be volatile. It will never rain exactly when we want it to. These things aren’t new. However, something else that isn’t new is GreenStone’s team will be here for you exactly when you need us to be, no matter what is happening with the economy, prices or the weather! Best wishes for a safe and productive growing season! Please feel free to reach out to me any time if I can ever be of assistance. Thank you for your business!
Dave Armstrong
517-318-4105 dave.armstrong@greenstonefcs.com
Travis Jones
517-318-4144 travis.jones@greenstonefcs.com
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GROW
CultivateGrowth Feature
A HEALTHY BALANCE “I like taking care of animals, and I like the balance of when we raise healthy animals, they produce manure that makes our land healthy,” said Elaine Palm. “The healthier our land is, the healthier the forage grown on the land is, and the healthier the animals will be.” Elaine owns Great Lakes Lamb LLC with her parents, Jim and Sherrie Bristol. On their farm in West Branch, Michigan, they raise sheep and forages to feed them, plus sell hay to customers. They primarily raise sheep for the meat market and for breeding stock, and they also sell their wool. “We also have a passion for high quality wool products,” Elaine said. “I’m currently in the process of getting our farm established in American Wool Assurance, which is a brand new program nationwide.” Elaine is taking classes related to wool quality and animal care standards to receive certification through the program that their farm is adhering to best practices. “We’re seeing that along with wanting to know where their food comes from, customers want to know where all their products come from,” Elaine said. “Customers are really interested in making sure that they’re sourcing their products from farmers who care.” View a highlight reel video at: www.greenstonefcs.com/YBSFSummer22 5
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Showing care
Elaine and her sister Brigette began farming by default, as they grew up doing chores with the barn in their backyard. They both became heavily involved in 4-H and FFA. As they got older, they had the opportunity to work with Michigan State University on projects that benefited their farm. “With MSU, I looked at fecal samples to evaluate internal parasites, and Brigette looked at forage samples,” Elaine said. “These projects gave us even more insight into our business through our involvement in these projects.” Elaine went on to study agriculture and natural resources communications at MSU, and began a career in nonprofit organizational management. “A few years into my career, I was driving home every three weeks in the summer from Washington, D.C. to help with hay harvest, and I knew this was not a sustainable plan,” she said. “If I was going to get involved in the farm business in a bigger way, I would need to make a change.” She did that in 2014, when she moved back to Michigan and began having conversations with her parents about the potential of becoming partners. She continued working in her agricultural career, and didn’t
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Customers are really interested in making sure that they’re sourcing their products from farmers who care.
➡G reenStone Financial Services Officer Joshua Quaderer stands with the Great Lakes Lamb crew, Rick and Elaine Palm and Sherrie and Jim Bristol. Partners — Summer 2022
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immediately move on the farm, but she kept an eye out for farms for sale. “It just so happened that six months after I moved to Michigan, the farm across the pasture from my family went up for sale,” she said. “There were other options for sale in the county, but to purchase this farm showed a financial commitment to this being my vision for our farm’s future.” Making plans
Off the farm, Elaine is a community nutrition instructor for MSU Extension, where she works with people eligible for food assistance on strategies to stretch their food dollars to meet their household’s nutritional needs. Her husband Rick, a technical advisor for Stellantis, also works both on and off the farm.
“He helps us however he can,” she said, “Animal chores, harvesting hay, fixing equipment, changing out parts – he’s good at everything.” Elaine is looking forward to the future of her family and farm, as she and Rick are expecting a child this year. “In 2019, I bought another farm property and a farm truck on Valentine’s Day,” she said. “Two weeks later, I started a new job. That month my fiancé Rick sold his house and moved two hours from his job. Then in March we got married. Quite a year.” Working with GreenStone
Elaine worked with GreenStone as a lender for her investments, including a field the farm had previously rented, and a farm vehicle. “We had also discussed transitioning two
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I made these purchases to expand the potential of the farm’s future...
➡E laine Palm reflects on the future of her farm and growing family while sitting on wool collected from their sheep. 7
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equipment loans and a line of credit from the bank we were using to GreenStone,” she said. “We were seeing less and less understanding of agricultural accounts and business practices from our previous bank, so we moved them to GreenStone at that time.” The timing, though difficult, worked out for them. “We made the farm vehicle purchase in May 2020, and the dealership wasn’t allowed to make sales at that time,” she said. “We were one of the first to make a purchase when they were permitted again. We made the deal in the parking lot, with masks on, with our own pens in our hand.” GreenStone Financial Services Officer Josh Quaderer enjoyed working with Elaine from the beginning.
“It’s so great seeing someone get started and watching them grow,” he said. “For me, it’s one of the most rewarding parts of the job.” While working together initially, Josh knew Elaine wasn’t pleased with her current lender. As an agriculturespecific lender and cash crop farmer himself, Josh was happy to share his experience with her. “You understand the financial side of things so much better when you’re dealing with it yourself,” he said. “We can see it from the farm side and from the banking side.” GreenStone had options for young, beginning, and small farmers like her, and as an added bonus, once a customer, it was extremely easy to process new requests. “I made these purchases to expand the potential of the farm’s future,” Elaine said. “Farming is a cyclical process I like to see and facilitate, as we get a balance between nature and the animals we raise for food.” ■
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➡N ew life is flourishing among the Great Lakes Lamb flock.
AGRICULTURE – OPEN FIELDS BLOG BRIEF GreenStone publishes regular updates on our Open Fields blog. Check out some of the posts you may have missed at www.greenstonefcs.com/openfieldsblog. Commodity Update: Dairy Market Outlook After many years of back-to-back low milk prices, U.S. producers are in a period of extraordinarily high milk prices. Jim Byars, vice president of agribusiness lending, shares more. Dollars and Sense: Am I Focusing on the Right Things Financially? Farmers are used to calculating profits each year for their entire farm – whether that be on a cash basis, a fair market value basis, or on a real-time accrual accounting basis. Chad Zagar, VP & Managing Director of Tax & Accounting for GreenStone Farm Credit Services outlines the different areas you should be considering. Livestock Insurance Changes for 2023 These changes will allow all livestock producers to have access to important risk management programs. ■
➡T op Left: The Schultzes' australian shepherd, Miles. ➡B ottom Left: GreenStone financial services officer, Johnny Thompson, featured with Max and Halie Schultz
Partners — Summer 2022
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YBSF RESOURCES:
APPLY TODAY!
CULTIVATEGROWTH MENTORSHIP: NOW ACCEPTING APPLICANTS! GreenStone’s focus of providing the next generation of agriculture with the resources necessary to succeed in today’s economy extend past our financial products and services. We believe that providing young, beginning, and small farmers with the right knowledge and learning opportunities will empower them, helping both them and their farm succeed. Often, the best way to gain this crucial knowledge is from someone who has years of learning and wisdom. With this in mind, GreenStone created the CultivateGrowth Mentorship to connect young, beginning, and small farmers with individuals who have industry knowledge and farming experience to share. The cooperative is thrilled to announce it is now accepting applications for the next round of mentors and mentees. The 2022-2024 CultivateGrowth Mentorship will pair a mentor 9
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andr mentee with similar farming goals. To maximize each participant’s mentorship experience, each pairing will be guided by their GreenStone relationship managers and a professional business coach. Through this 18-month mentorship program, participants gain unmatched insight from one another and in the past, participants have often implemented changes on their farm as a result of what they’ve learned.
are encouraged to meet one-onone several times throughout the year.
The program begins with a day of training and includes several coordinated conversations and FSO-led meeting sessions to strengthen the relationship between the participants paired. Mentors and mentees have site visits to each other’s farms and
• Learning new ideas
Value to Mentee
resources and overseeing dayto-day operations. Additional networking and educational events are available for participants and in the past, both mentors and mentees have benefited from the program by gaining a new perspective. Though these relationships will last long after, the official program will conclude with a group celebration event at the end of the 18 months.
• Gaining broad knowledge of industry dynamics and practices • Networking with key industry contacts • Understanding today’s agriculture business model Value to Mentor • Satisfaction of helping and teaching the next generation • Gaining experience in the art of mentorship Some key areas the program focuses on are creating an effective business plan, managing risk, utilizing
Ready to join? GreenStone began reviewing applicants for the 2022-2024 CultivateGrowth Mentorship program on July 15. If you are interested in learning alongside an experienced mentor or would like to use your knowledge to positively impact a young, beginning or small farmer, apply today! Visit www.greenstonefcs. com/Mentorship or email us at marketing@greenstonefcs.com ■
CULTIVATEGROWTH GRANT Navigating the ever-changing and competitive agriculture industry can be a daunting challenge without the right resources, education or knowledge. For young, beginning or small producers, setting aside extra time and dollars to put toward education isn’t always an option. To help alleviate some of the cost, GreenStone’s CultivateGrowth Grant commits up to $40,000 each year to off-set the costs of these important opportunities. Young, beginning, and small farmers who qualify can use the grant toward farm or business consultations, educational courses and seminars, resource-focused events or conferences, and first-time use of GreenStone’s tax and accounting services. Like Sara Hunter, many have taken advantage of the grant and have utilized it to participate in a variety of activities to gain more insight and knowledge. For instance, when Sara began her career switch from the IT world to farming, she knew she needed new education and training. The CultivateGrowth Grant put this goal within reach. It allowed Sara the
opportunity to attend the Organic Farming training program through Michigan State University at a lower cost she could handle. The program began in March and runs through November. Currently, Sara is working on the farm’s soil health and learning how to grow thriving crops. During the training, Sara has hands on lessons, learns about soils, does plot mapping for crops, and just about anything you can think of from A to Z of farming. After the training, Sara and her family are planning on planting 24 acres of row crops, all organic, and no till for the fields and hoop house. Sara also has the opportunity to visit other farms and network with other organic farmers through the program. The grant provides up to $1,000 to current customers and up to $500 to non-GreenStone customers. Individuals like Sara who qualify as a young, beginning or small farmer are encouraged to apply for the grant today: www.greenstonefcs.com/ cultivategrowth.■
i CultivateGrowth Resources Knowing where or who to turn to when you have questions about your operation is critical when it comes to making decisions– especially as a young, beginning or small farmer. In addition to the grants and mentorship opportunities offered through GreenStone’s CultivateGrowth program, the resources below could be a valuable asset to your ongoing learning: • Map of Michigan Beginning Farmer Programs: Curated with you in mind, MSU’s interactive map provides beginning farmers with over 90 valuable resources and programs to connect you with the information you need. To check out resources local to you, view the map online at canr.msu.edu/sof/map.html. • Michigan Farm News – Dollars and Sense: Monthly articles covering farm finance topics, tips on tax planning and expert advice from lenders at GreenStone are a valuable resource for all farmers, especially ones just beginning. Check out July’s article, Breaking Barriers for Beginning Farmers online at michiganfarmnews. com or greenstonefcs.com. • University of Wisconsin- Madison: With a variety of resources ranging from in-person and online programs, blogs, workbooks, podcasts, upcoming event information and more, the Farm Management section on UW-Madison Extension’s website likely has just what you’re looking for. See for yourself at farms.extension. wisc.edu. ■
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Do You Have Owner Meetings? By Barb Dartt, DVM, MS Principal Consultant with the Family Business Consulting Group
Ownership…it’s a bit of a contradiction. On the one hand, we humans seem to get the concept as soon as a toddler can say, “Mine!” On the other hand, ownership as a distinct business role is often unnoticed in family businesses…particularly when managers and owners are the same people. In fact, owner decisions are few and far between. Here’s what owners actually decide: • Set the “playing field” for the business by defining the purpose, values, vision and some specific financial goals – levels of growth, risk, profit and liquidity; • Communicate that guidance, with one voice, to the board and managers;
Manager Thoughts
Owner Thoughts
• Review and support the strategy proposed by management, especially ensuring it can meet owners’ vision and goals;
Is the price right?
Does the additional acreage fit with our growth goals?
• Decide whether to keep, merge or sell the business; and
How will we finance it if there isn’t enough cash?
We just took on some risk by borrowing for a big expansion – should we increase our debt even more?
How will I find time to negotiate with the seller?
If we buy it out from under our neighbor who is renting it, will it impact our reputation?
• Elect directors, when they have a board. In the absence of a board, the owners also serve as directors. (And that job description is another topic for a different day.) These decisions certainly happen when owner and manager roles overlap – they just get a little obscured by the frequency and urgency of day-to-day management decisions. For example, an owner-manager who finds out that a contiguous 120-acre parcel is about to come up for sale probably thinks through both manager and owner considerations. 11
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Can we plow under that line of saplings that got planted along the road three years ago?
talking through things like how fast the business will grow or how much risk it will take can reveal deep differences in individual needs and preferences. One of the most frequent events that can drive the need for a dedicated owner meeting is management transition. When a senior generation backs away from his day-to-day role and still owns a big part of the company, his needs and preferences are very likely different from those of his 35-year-old daughter and her cousins. He wants to minimize risk. They want to expand. He wants to stick with tried-and-true approaches. They want to innovate. You’ve seen this scenario before! (And note – sometimes the preferences are swapped. The point is, individual style or changes in life situation often cause owner goals to evolve.) So, do you have owner meetings? They have particular application when the senior generation folks leave management. But it’s a great idea to begin practicing the owner role – and associated discussions and decisions – before members of your owner team leave management. Owner meetings should happen less frequently than management meetings – twice a year or quarterly. If possible, they should happen off site. Below is an example standing agenda for an Owner Meeting. The content usually causes an owner agenda to look like a hybrid between a board meeting and a strategy meeting. When all the owners and all the managers are the same people, management updates can seem a little redundant. Of course, adjust as necessary, using the owner decisions outlined above as guidance. EXAMPLE Owner Meeting Standing Agenda 1. Around the Table – How is everyone doing? 2. Management Update • State of the industry • Operating outlook for 2022 3. Current Financial Goals – dashboard review & discussion 4. Update Financial Goals – are they consistent with our long-term plan? 5. Review Updated Decisions & Next Steps from prior meeting 6. Set timing & topics for next meeting
Manager concerns focus on day-to-day considerations like time, cash and efficiencies. Owner questions are almost always complex and challenging. It can be easier to focus on management decisions – they have more concrete answers. Owner choices have deeper, broader and longer-term implications. Tackling these important, strategic questions is hard enough to find time for if you’re the only owner. And, for a group of owners, aligning on these very important, long-term choices is often very challenging. This becomes harder when owner teams don’t carve out dedicated time to learn and discuss each other’s goals. Aligning owners on vision, values, financial goals (this IS an investment of your money, after all!) and then communicating with one voice to managers and the rest of your family takes time, energy and deliberate work. It’s not for the faint of heart –
The importance of the owner’s role is akin to the rudder on a ship: it provides an enterprise with overall direction, setting its fundamental purpose and financial goals. Consider taking time to set your rudder. It will probably take time and practice to get skilled at your owner role. And, it can be some of the most rewarding work you will do in your family business! ■ ABOUT THE AUTHOR
Barb is an owner of and a consultant with the Family Business Consulting Group, working with families and owner and manager teams to help them keep their business healthy and the people happy – and assist with succession and continuity planning. Barb can be reached at 269-382-0539 or dartt@thefbcg.com
The opinions stated herein are not necessarily those of GreenStone Farm Credit Services.
Partners — Summer 2022
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Summer Market Outlook:
Chain Reaction By Matthew Naeyaert, GreenStone Capital Markets Senior Credit Analyst
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Following the strong economic expansion achieved in the prior year, the U.S. economy has been contending with significant headwinds in 2022. The challenges have most notably come from continued supply chain disruptions, high inflation, and labor shortages.
Making matters worse, the already present inflationary pressures and supply chain bottlenecks have been exacerbated by the ongoing war in Ukraine. The U.S. economy’s real gross domestic product (GDP) experienced a surprising decline in the first quarter of 2022. According to the U.S. Bureau of Economic Analysis (BEA), GDP decreased at an annual rate of 1.5% through the first three months of the year. This reading marked a stark divergence from GDP’s strong 6.9% annualized growth in the fourth quarter of 2021, and overall 5.7% growth for the full 2021 calendar year. One driver of the decrease in first quarter GDP was the widening trade deficit as U.S. exports fell and imports increased, a result of ongoing supply-chain constraints. Additionally, U.S. businesses reduced their level of inventory investments in the first quarter, as compared to fourth quarter of 2021, which also contributed to the lower growth reading. One bright spot in the BEA’s first quarter report was the increase in consumer spending by an annual rate of 3.1%. Rising prices across the economy have grabbed headlines and present a potential threat to future economic growth. The U.S. Bureau of Labor Statistics reported the Consumer Price Index (CPI) increased by 1.0% in the month of May and over the past 12 months the CPI has increased by a total of 8.6%. This annualized CPI growth level is the fastest pace of inflation since December 1981. The largest contributors were in the energy index which was up 34.6% year-over-year, and the food/ grocery index, up by 11.9% over the past 12 months. While these two categories represent the primary drivers of the rising headline inflation reading, price increases were broad-based across all of the categories tracked in the CPI. Economists have pinned the high rate of inflation on supply chain bottlenecks and remarkably strong consumer demand outpacing supply. These trends have been accelerated, particularly in the energy and food indexes, by the disruptions to global markets from the Russian invasion of Ukraine. In an attempt to reduce the pace of inflation, the Federal Reserve has launched its most aggressive tightening of monetary policy in over 20 years. At the June 2022 meeting, the Federal Open Market Committee (FOMC) raised
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Agricultural commodity prices have been on an increasing trend across the board through the first half of the year. Notably, grain prices have increased significantly since the beginning of 2022...
interest rates by 0.75%, increasing its target range for the federal funds rate to 1.50% to 1.75%. This was the FOMC’s largest interest rate increase since 1994 and came on the heels of the 0.50% rate increase which was approved at its May 2022 meeting and was the largest since 2000. In addition to raising interest rates, the Federal Reserve announced it will also begin reducing the size of its $9 trillion balance sheet as another tool in its attempt to tamp down inflation. The Fed will allow some of its bond holdings to mature without reinvesting the proceeds. Specifically, the Federal Reserve will not reinvest proceeds from up to $30 billion of Treasury securities, and $17.5 billion of mortgage-backed securities in the months of June, July, and August. Afterwards, it will increase the monthly amount of uninvested proceeds to $60 billion and $35 billion for Treasuries and mortgage securities, respectively. In the end, the Federal Reserve is attempting to achieve a “soft landing” for the U.S. economy, as it attempts to raise interest rates enough to bring down inflation but not too high to cause a recession. Agricultural commodity prices have been on an increasing trend across the board through the first half of the year. Notably, grain prices have increased significantly since the beginning of 2022 with corn, soybean, and wheat prices up by approximately 30% to 40% yearto-date at the time of this writing. The Russia/Ukraine conflict and its effect on agricultural supply chains has been a major factor in the recent price movements. Other factors driving the rising price environment in global grain markets prior to Russia’s
invasion of Ukraine, have been supply reductions due to inventory drawdowns over the past four years and poor weather patterns during growing seasons in South America, combined with strong demand from China and other large importers. The June WASDE report revealed the tight supply/demand situation is likely to continue, especially for corn and soybeans with estimated stocks-to-use ratios for the 2022/2023 marketing year of 10.0% and 4.6%, respectively. In the report, the USDA’s average price forecasts for 2022/2023 were $6.75 per bushel for corn and $14.70 per bushel for soybeans. Dairy markets have experienced strong price growth throughout 2022 as well, with the Class III milk price up by 32% from the beginning of the year to mid-June. The prices paid to producers have been boosted by higher prices for dairy products, most notably butter and nonfat dry milk, driven by falling inventory levels. Despite the increases in milk prices, milk production has been fractionally lower in 2022 compared to the prior year. Additionally, the U.S. dairy herd is not projected to grow significantly over the next year due to rising expenses from increased feed, labor, and heifer costs. However, U.S. producers are not alone in dealing with increased cost pressures. New Zealand and EU dairy producers are facing similar challenges which has resulted in reduced milk production from these regions as well. With the forecasts for limited supply growth and strong consumer demand for dairy products, the USDA is anticipating milk prices to remain elevated with a 2022 all-milk price forecast of $25.75 per hundredweight. ■ Partners — Summer 2022
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CONNECT
NEWS: Member Grown Outreach: 7 organizations benefit from members! In celebration of GreenStone returning $115 million to members on Patronage Day, the cooperative once again committed $20,000 to the Member Grown Outreach program to support the local communities we serve! During Patronage day, members voted for one of three causes they wanted GreenStone’s $20,000 donation to go towards, health and wellness, local disaster relief, or sustainability and environment. The cause selected was: Disaster Relief. To support the local communities, staff from each of GreenStone’s branches then came together to each identify eight organizations from throughout our territory whose mission aligns with disaster relief for the cooperative to support. The total $20,000 donation was split between each of the regionally-selected charities and each organization received $2,500 per nomination. We are proud to announce the results of the 2022 Member Grown Outreach program: Michigan AgrAbility, selected by two of GreenStone’s regions, received a check for $5,000 to support their mission of providing services to farmers with amputations and paralysis, disabilities, illnesses or aging conditions so they can continue the occupation and lifestyle they love. American Red Cross was also identified by two regions and each of the two local chapters selected, Northeast Wisconsin Chapter and Michigan Region, each received a check for $2,500 to continue supporting communities impacted by natural disasters, house fires or other environmental or economic loss. GreenStone continues to work with both chapters to plan a blood drive to make an even greater impact. South Kalamazoo County Fire Authority was selected as an organization for the cooperative to support and will be receiving a check for $2,500. The fire authority will be using the donation from GreenStone to train their firefighters on grain bin safety and how to quickly and correctly respond to on-farm disasters. 15
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Community Action Agency promotes self-sufficiency in Jackson, Lenawee and Hillsdale Counties through programming, advocacy and leadership, and the $2,500 check from GreenStone will support their ongoing mission of assisting families and community members facing hardship due to economic or environmental disasters.
of our local nonprofit and government entities to create change and support our community. GreenStone’s $2,500 donation will support their disaster relief fund to provide aid to for families with economic or environmental hardships.
Midland Area Community Foundation was selected to receive $2,500 and the donation will be allocated towards the foundation’s Disaster Relief Fund to assist the community with future environmental disasters. The fund supports families and community members impacted by an array of natural disasters through offering temporary support, housing, or resources.
This year marks the fourth Member Grown Outreach program and GreenStone is honored to have given back over $60,000 to organizations throughout Michigan and northeast Wisconsin since 2018. It’s crucial that as a cooperative, GreenStone continues to support the communities it serves and is grateful for the ongoing support and involvement from both members and employees to carry this mission forward.
Bay Area Community Foundation brings together financial resources of individuals, families, and businesses with the ideas, projects and leading efforts
For more information on GreenStone’s continuous support of agriculture and rural communities, visit www.GreenStoneFCS.com/community. ■
GreenStone Members Elect Directors to Cooperative Board Following the conclusion of GreenStone’s annual elections, two new members have joined the Board of Directors, along with three incumbents being reelected: Ed Reed, Michael Timmer, Trent Hilding, Jed Welder and Marilyn Thelen.
elected individuals to serve on the cooperative’s 2023 nominating committee. The nominating committee is comprised of GreenStone members from throughout the organization’s territory who are tasked with recruiting candidates for next year’s board elections and nominating committee. The 2023 nominating committee includes:
Ed Reed of Cass County and Michael Timmer of Allegan County were reelected to four-year terms representing voting region 4. Ed, a hog and grain operator, has been a member of the GreenStone board for 14 years, currently serving as GreenStone board chairman. Michael raises crops and replacement heifers and will now be serving his second term on the board.
Region 1 – Benjamin E. Ritter (Saginaw County) and Jeremy P. Werth (Alpena County) Region 2 – Darrin J. Wolschleger (Huron County) and Randall M. Wood (Sanilac County) Region 3 – Jeffrey
Trent Hilding of Montcalm County was newly elected and joins incumbent Jed Welder in being selected for four-year terms to represent voting region 5. Trent brings a new perspective to the board with cattle, row crop, and agricultural law experience. Jed begins his second term on the board as a cash crop farmer and customer harvester. Marily Thelen of Clinton County has been appointed by the board to fill the remaining year of the region 6 board seat term vacated when Laura Braun was elected to represent GreenStone on the AgriBank Board of Directors. On her farm, Marilyn raises steers and cash crops. “As a member-owned cooperative, we are governed by members who have a vested interest in seeing GreenStone continue its successful mission of serving rural communities and agriculture,” explained Dave Armstrong, President and CEO. “Once again I am reassured by the knowledge and success of those elected to these positions. It’s clear the cooperative strength of GreenStone is alive and well.” Along with the board positions, GreenStone’s 28,000 members
E. Horning (Washtenaw County) and Thomas W. Schroeder (Hillsdale County) Region 4 – Lisa Ambrosio (Kalamazoo County) and Jason R. Scramlin (Barry County) Region 5 – Abraham J. Pasch (Isabella County) and Tyler C. Wilson (Gratiot County) Region 6 – James R. Goodheart (Clinton County), Matthew R. Keilen (Clinton County) and Bradley J. Ritter (Shiawassee County) Region 7 – Aaron F. Behnke (Marinette County), Ryan R. Brock (Oconto County) and William L. Roethle (Kewaunee County). ■
GET INVOLVED – YOU OWN IT! GreenStone is owned and governed by members who have a vested interest in seeing the association continue its successful mission of serving rural communities and agriculture. You are an owner and you have the right and responsibility to guide the cooperative forward. In August the recently elected nominating committee members from GreenStone’s voting regions 6 & 7 will begin the candidate selection process for director and nominating committee positions for 2023. All other regions will meet in December to select candidates to run for the open 2024 nominating committee positions. We invite YOU to consider being a part of your cooperatives governance and Region 7 submit your interest today! The Nominating Committee role is a great place to start, it is a 1-year commitment to get you exposed to the process. The time commitment is approximately 5 hours to 3 days typically. Are you ready to get involved? You can! Go to www.greenstonefcs.com/ governance to learn more about the nominating and director roles. Complete a profile to express your interest or contact our corporate governance coordinator, Cheryl Motz at Cheryl. motz@greenstonefcs.com or 517-3189557 to get involved! ■
Region 1
Region 5
Region 2
Region 6 Region 3 Region 4 Partners — Summer 2022
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Summer Interns! This year’s group of summer interns is the biggest group GreenStone has had the privilege of working with! A group of 29 student interns joined GreenStone’s team for the summer months covering a variety of departments. As a GreenStone intern, students gain exposure to real-world projects and experiences aligning with their career goals. Alicia Shatrau: Accounting & Finance Intern College: Graduated from Michigan Technological University with a major in Finance, currently attending their accelerated Master’s in Accounting program. Favorite Part of Internship: All of the realworld projects! Jason Juengel: Appraisal Intern College: Attending Oakland University with a major in Business Economics and a minor in Business Analytics. Favorite Part of Internship: Being able to apply farming background to business foundations. Bret Dewey: Real Estate Appraisal Intern College: Attending Grand Valley State University with a major in Finance Favorite Part of Internship: Being able to attend on-site inspections for upcoming appraisals. Sean Johnson: Business Intelligence Intern College: Graduate from Grand Valley State University with a degree in Data Science and Analytics Favorite Part of Internship: The amount of real-world knowledge and experience.
Alexis Roberts: Credit Intern College: Attending Florida A&M University with a major in Business Administration and a minor in Agribusiness. Favorite Part of Internship: Meeting the team and other interns. Dalton Hanchek: Crop Insurance Intern College: Attending the University of Wisconsin with a major in Finance Favorite Part of Internship: Meeting customers and seeing their operations. Grace Hull: Crop Insurance Intern College: Attending Michigan State University with a major in AgriBusiness Favorite Part of Internship: Working and learning to prepare for a career after graduation. Lily Wendland: Crop Insurance Intern College: Attending Michigan State University with a major in AgriBusiness and a minor in Agronomy Favorite Part of Internship: Being able to meet and interact with customers and visit their farms. Hubert Fernander: Crop Insurance Intern College: Attending Florida A&M University with a major in Agriscience Favorite Part of Internship: Visiting local farms.
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Tomas Ruiz: Information Security Intern College: Attending Michigan State University with a major in Computer Engineering Favorite Part of Internship: Being able to contribute to different projects, being a part of meetings, and overall feeling that every day I am contributing something that is of benefit to the organization. Makailah Danzy: Legal Review Intern College: Attending Florida A&M University with a major in Biological Systems Engineering Favorite Part of Internship: Having the opportunity to learn something new everyday. Ali Mukhtar: Service Desk Intern College: Attending Michigan State University with a major in Media and Information with a minor in IT support. Favorite Part of Internship: Being able to provide help to everyone who calls the service desk. Kade Preston: Legal Review Intern College: Attending Central Michigan University with a major in Economic Law Favorite Part of Internship: The cool experiences outside of the office. Joseph Klynstra: Client Support Intern College: Attending Michigan State University with a major in Computer Science Favorite Part of Internship: The opportunity to learn and continue to grow my knowledge.
Sydney Smith: Learning & Development Intern College: Attending Florida A&M University with a major in Business Administration and minor in Agribusiness Favorite Part of Internship: Being able to attend meetings with customers and other employees.
Amber Zabonick: Marketing & Writing Intern College: Attending Olivet College with a major in Business Administration and a minor in Marketing Favorite Part of Internship: Interviewing customers and being able to hear their stories.
Justin Bloom: Credit Intern College: Attending Western Michigan University with a major in Finance and Personal Finance & Planning. Favorite Part of Internship: Being able to visit farms and see the various operations and how that translates to the work we do and the information we see.
Macey Schrauben: Human Resources Intern College: Attending Ferris State University with a major in Human Resource Management Favorite Part of Internship: Having the opportunity to assist in the internship program and in recruiting.
Jordyn Boyne: Credit Intern College: Attending Northwood University with a major in Business Management Favorite Part of Internship: The managers trusting me with important tasks and the positive and welcome environment of the Sandusky branch. Slater Lutz: Credit Intern College: Attending Grand Valley State University with a major in Finance Favorite Part of Internship: Being able to advance my skills in the finance field. Amanda Johnson: Credit Intern College: Attending Grand Valley State University with a major in Finance Favorite Part of Internship: Being able to dive into the balance sheets and obtain hands on experience. Zander Wesner: Client Support Intern College: Attending Central Michigan University with a major in Information Technology and a minor in Computer Science Favorite Part of Internship: Being able to see how everything happens behind the scenes and understand the process of making changes. Jacquelyn Letavis: Graphic Design Intern College: University of Michigan- Flint Favorite Part of Internship: Being able to work with an amazing team and having the opportunity to create designs.
Alicia Angell: Learning & Development Intern College: Attending Central Michigan University with a major in Human Resource Management and a minor in Information Systems Favorite Part of Internship: Working on improving the onboarding process here at GreenStone. Joshua DeVries: Credit Intern College: Attending Grand Valley State University with a major in Finance Favorite Part of Internship: The great team here at GreenStone! Jourdryn Armstrong: Appraisal Intern College: Attending Central Michigan University with a major in General Business Favorite Part of Internship: The many great experiences I’ve been able to have like visiting farms and learning about agriculture. Luke Harry: Credit Intern College: Attending Northwood University with a major in Finance and Accounting Favorite Part of Internship: Having the opportunity to meet new people and industry experts. Matthew Wilcox: Application Developer Intern College: Attended Davenport University with a major in Computer Science and a minor in Mathematics Favorite Part of Internship: GreenStone is a wonderful company with many wonderful people within it. My favorite part is all of the people I’ve met during this time. ■
Smith-Pickard Friendship and Alliance Scholarship Winners Interning with GreenStone In 2021-2022, six Detroit and Bahama's high school seniors were awarded with the Smith-Pickard Friendship and Alliance Scholarship. This scholarship is a full tuition scholarship at Florida A&M designed to support young leaders who aspire to work in the agricultural field. four of them are now interning in various departments at GreenStone to further their future careers in agriculture. When asked how interning with GreenStone has impacted them: Makailah Danzy- Interning with GreenStone has been an amazing experience. This is my first job experience and I must admit I was nervous and didn’t know what to expect. GreenStone has made the transition into the business world very easy. Thank you for allowing me to be a part of the GreenStone family! Sydney Smith- My GreenStone internship has been great for me. I feel like I am learning more and more each week on professional skills and habits, how to communicate better with a team, and other important skills that will be useful in whatever profession I take on in the future. I am embracing everything GreenStone is teaching me and the whole experience overall. Alexis Roberts- As a credit intern here at Greenstone, I have been impacted by so many wonderful people. When I reflect upon my experience, the word that resonates with me the most is family. Since my first day of work, I was immediately welcomed with open arms and challenged to excel in my role. Being a part of the credit team has opened my eyes to the possibilities of my career journey, and I am appreciative for the support of my supervisor and teammates. Hubert Fernander- The internship, like the scholarship, has been a blessing. This exposure to the white and blue collar side of the farming industry allowed me to expand my agribusiness knowledge. My goal for this internship is to absorb as much as I can from this experience and expand my ag network. ■
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BEHIND THE SCENES In this behind the scenes, we hear from two GreenStone executives as they speak to the future of the cooperative and withstanding a challenging market.
Melissa Stolicker Executive VP & Chief Internal Auditor East Lansing, MI 18 Years of services Describe how your role carries out the GreenStone mission of supporting rural communities and agriculture. The audit department is designed to add value and improve operations through evaluating and assessing the effectiveness of risk management and internal control. Our members benefit from an organization with a strong culture and cooperative governance, as well as efficient and effective operations. What opportunities do you see as we move forward with a new CEO? We have a strong track record of providing credit and financial services across the agricultural and rural communities we serve, so I do not predict wholesale changes in structure or operations. All changes in leadership bring a different perspective and our new CEO will bring their unique viewpoints and strategies. In looking back at the cycle of agriculture over the past decades, where do you see the greatest challenge for GreenStone and our members? The volatility of inputs and commodity prices seem to challenge our producers. Our members are very good at agricultural production, managing the costs and ensuring a strong value for the sale of the product is where we see the challenges. What do you enjoy about your role? The role of auditor can sometimes be intimidating. I enjoy meeting with staff throughout the organization and helping them understand that our department is here to ensure GreenStone has strong controls in place to support the long-term viability of the organization. What do you enjoy doing in your free time? In the summer we enjoy spending time up north on the lake with family, friends and our two horribly spoiled dogs.
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Our members benefit from an organization with a strong culture and cooperative governance...
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Paul Anderson Executive VP & Chief Credit Officer East Lansing, MI 39 Years of Service Describe how your role carries out the GreenStone mission of supporting rural communities and agriculture. The credit department’s role is to extend sound constructive credit that balances the financial needs of individual customers with the overall financial health of GreenStone for the benefit of the 28,000 neighbors that are a part of this lending cooperative. We focus on three basic principles in the development of our rules and tools utilized to make the loans, service the loans and collect the loans: 1. C alculating the correct amount of analysis to arrive at a reasoned business decision. 2. A ligning the right resource with the right loan – automate decisions when possible, and incorporate knowledge and experience for a blended analysis when necessary. 3. G et the room right. The strength of GreenStone is in the diversity of opinion in the development of our guidance. How has GreenStone prepared to withstand future challenges? An organizational culture of never being complacent, employees that live and are committed to our core values each day, and a team that is focused on supporting each other and serving our customer
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I am excited to share the many different options YBSF applicants will have with the expanded program.
owners. With that, having a stewardship mindset of leaving this a better place than when we started individually and collectively. In looking back at the cycle of agriculture over the past decades, where do you see the greatest challenge for GreenStone and our members? Not forgetting the lessons of history. We are entering a cycle similar, but less severe at the moment, of the inflationary cycle of the late 1970s that were followed by the harsh correction of the 1980’s for agriculture. We are in a much better position as we start to move through the correction cycle we will experience over the next three to five years. During this time, we need to make sure we do not over or under react. Respectful communications, thoughtful development of options that include giving people adequate time to make rational decisions is paramount.
What do you enjoy about your role? I enjoy the people, our team approach, and working with and for our customers. We have the privilege of partnering with our farm owners, the 1% of this country’s population that literally helps feed the world. During my time in the credit department, we have created a philosophy of looking for ways to say “yes”. We are in the risk management business, not the risk avoidance business. In part, that comes with the development of a team approach to wholistically serve our customers and the relationship philosophy of a “trusted partner” rather than a “banker”. What do you enjoy doing in your free time? Spending time with family, friends, and community of our church; golfing; and fishing. I also enjoy being a Green Bay Packer and Wisconsin Badger fan in Michigan! ■
Pause for Applause... SERVICE ANNIVERSARIES Help GreenStone congratulate and thank these staff who are celebrating an employment milestone. From five to 35, the years represent the dedication and service all employees provide our members.
July Kelly Wilkes Lynette Wood Cheryl Carlton David Ballman Sadie Pionk Jacilyn Sanch Elana Fata
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August Jack Koester Sherry Lange Jessica Lacross Matthew Naeyaert Deborah Simmer Matthew Cramer Bradley Hibbert Amy Huber Margaret Jorns
35 30 20 10 10 5 5 5 5
September Tricia Koenigsknecht Stephanie Luark Travis Jones Kristine Diebel Chad Zagar
15 15 15 10 5
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GREENSTONE AWARDS SCHOLARSHIPS TO HIGH SCHOOL SENIORS Investing in youth who are aspiring to enhance the future of agriculture by pursuing a career within the industry is a direct investment in the future of agriculture. GreenStone is proud to support the future success of youth in agriculture by awarding college scholarships to graduating high school seniors who are dedicated to influencing and impacting the agricultural and natural resources industries. The recipients this year have inspired GreenStone as each scholarship awardee has demonstrated academic integrity, commitment to a variety of extracurricular activities, leadership in their communities, and passion for the agricultural industry. GreenStone feels honored to support such a devoted group of young leaders as they chase their dreams and achieve their goals with the ultimate plan of entering the agriculture industry after graduation. GreenStone has committed to awarding $40,000 in scholarships to these incoming college freshmen, with $2,000 going to students pursuing a fouryear degree and $1,000 to students pursuing a two-year degree. Since 2010, GreenStone has presented over $400,000 in college scholarships to students who are just as committed to making a positive impact on the agriculture industry as GreenStone is. The 2022 scholarship awardees are: Megan Salentine – Luxemburg, WI, attending St. Norbert College Dane Adams – Shawano, WI, attending University of Wisconsin – Stevens Points Amber Fietzer – Manawa, WI, attending Concordia University
Laken DuRussel – Munger, MI, attending Michigan State University Alexander Smith – Bay Port, MI, attending Michigan State University Jenna Gries – Manitowoc, WI, attending University of Wisconsin – Madison
Layla True – Dowagiac, MI, Ryann Wagner – Lena, WI, attending attending Michigan State University University of Wisconsin – Eau Claire Jenna Stanton – Manitou Beach, MI, attending Michigan State University Madelyn Laskowski – Bad Axe, MI, attending University of Finlay Claire Duch – New London, WI, attending University of Wisconsin – River Falls Chloe LaCrosse – Forestville, WI, attending University of Wisconsin – Madison Elizabeth Henson – Blanchard, MI, attending Northwood University Clarissa Ulness – Valders, WI, attending University of Wisconsin – Madison Harlee Wolf – Suring, WI, attending Fox Valley Technical College Lora Korth – New London, WI, attending University of Wisconsin – River Falls 21
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Hannah Cerveny – Gresham, WI, attending Brigham Young University – Idaho Caleb Tucker – Hopkins, MI, attending WyoTech Margaret Hartmann – Flint, MI, attending Central Michigan University Aubrey Rasch – Lowell, MI, attending Michigan State University Clara Milarch – Port Sanilac, MI, attending Michigan State University Applications for 2023 scholarships will be available on the GreenStone website in early 2023. ■
Recognizing Youth! GreenStone not only recognizes the good youth are doing within their communities, but we want to celebrate them too! To do so, GreenStone will be handing out T-Shirts to youth who stand out among their peers for embodying the phrase "Grow Something Good" with the goal of acknowledging those youth who are growing within themselves, among others, and within their communities.
So, what does the phrase "Grow Something Good" mean? Well, it can mean an array of things. We want to ensure we recognize and reward youth of diverse backgrounds and interests that exemplify positive characteristics such as hardworking, kind, giving, or reliable. Growing something good can include youth who volunteer within their community, portray leadership inside and outside of the classroom such as within 4-H or FFA, or even those who give a helping hand when needed or without being asked. Show Us Something Good
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— MSU Block and Bridle, Natalie Tesluer
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If you know someone who earned one of these shirts, congratulate them on making a positive impact within your community and encourage them to continue the great work!
Grow Something Good In today’s world, we need to highlight all the good we can and keep encouraging youth to continue positivity.
To see all the great ways youth in Michigan and Wisconsin are doing good, watch GreenStone’s Facebook or Instagram for photos with the #GrowSomethingGood. We will use social media and our website as a platform to showcase the positive and inspiring acts being completed by youth. By sharing these stories, we hope to inspire more youth to make a difference in the world! ■
Thank you so much for your generosity for being a gold sponsor at the 2022 Block and Bridle Livestock Judging Contest and Skillathon. We were able to provide the youth with awesome prizes and food at the contest because of your support!
Thank you so much for choosing me as a one of your scholarship recipients, I am so lucky to have companies that support our local youth involved in agriculture. Having the amazing connection in agriculture will help myself and others in our future. Thank you for helping our college bound students influenced by agriculture! Thank you again! — Ryann Wagner
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Thank you so much for awarding me with a scholarship! I will be attending MSU this fall and it will help me pursue my degree in animal science. Your kindness is appreciated. — Layla True
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...Candid Comments
Mark Your Calendar... JULY
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AUGUST Michigan 4-H Youth Dairy Days and Michigan Dairy Expo (18-22) MSU Livestock Pavilion, East Lansing, MI Michigan Livestock Expo Sale-abration MSU Livestock Pavilion, East Lansing, MI Farmers Market at the Capitol State Capitol Building, Lansing, MI (Thurs. July 21, Aug 18, Sept. 29)
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Wisconsin State Fair (4-14) Wisconsin State Fair Park, West Allis, WI
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National Blueberry Festival (11-14) Downtown South Haven, MI
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AgroExpo (16-17) St. Johns, MI
SEPTEMBER
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GreenStone Offices Closed In honor of Labor Day
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Great Lakes Logging and Heavy Equipment Expo (8-10) RESCH Expo Complex, Green Bay, WI
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GreenStone’s longstanding CFO takes top CEO leadership position for the cooperative. ➡O pposite page: Current President and CEO Dave Armstong congratulates Travis on his new leadership role. 23
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The GreenStone Story:
A Focused Step Forward The focus: Ensuring alignment with
GreenStone’s mission, vision, values, and people focused culture as the foundation of leading the cooperative to strong results through visionary leadership and strategic business development. The solution: An incoming CEO who
exemplifies our brand and embraces our culture through firsthand experience, a broad perspective, and a focus on engagement and partnership with customers and staff. After a nationwide search, GreenStone’s Board of Directors has named Travis Jones as our next President and Chief Executive Officer. Travis, who has served as the cooperative’s Executive Vice President & Chief Financial Officer for the last 15 years, will assume the chief leadership role on August 1, 2022 following Dave Armstrong’s retirement. In connection with our mission, GreenStone understands agricultural finance in ways unmatched by any other financial entities. During Travis’ nearly 15-year history with GreenStone, he’s consistently supported the rural and agricultural communities in Michigan and northeast Wisconsin – regardless of market or industry fluctuations – with a primary goal to help them grow, thrive and succeed.
retire July 31, 2022. His inspiring leadership leaves the cooperative in strong, stable hands. With a managed, steady approach Travis’ experience will help ensure an ongoing strong financial foundation for GreenStone customers to build and grow upon. Travis joined the GreenStone cooperative in September 2007 as CFO. Since that time, he has demonstrated his progressive strategic and operational leadership impacting long range organizational and capital planning. Like many GreenStone team members, Travis grew up on a small farm in Chapin, Michigan and now lives in Owosso with his wife Sue, where they together raised three children, Tyler, Mackenzie and Katelyn. Travis believes it is important to make a difference in the communities where we live and serve. He leads by example, leveraging his financial expertise on the board of the Michigan Finance Authority to help provide impactful, affordable loans for cities, colleges, and
public schools, plus serves on the Michigan FFA Association board providing support to the year-round agriscience curriculum and youth development activities. In this new role, Travis will build upon the strong foundation Dave established in his 14 years as CEO of the association. “Every day is an honor to work alongside our 600+ talented and committed teammates to serve our members. We’ve built an inclusive, customer first culture under Dave’s leadership and I’m truly humbled with the opportunity to continue that focus as the next CEO of GreenStone and build upon the successes Dave established,” said Travis Jones. “With our shared strategic vision for the cooperative, I look forward to paving the path forward to continued success and prosperity for our team and customers.” Travis will assume the role of President and CEO on August 1, 2022. For more information, visit www.greenstonefcs.com. ■
“We unanimously believe Travis Jones is the right person to drive GreenStone’s mission and values forward to best serve our members,” said Board Chairman Ed Reed. “His deep understanding of our Core Four Values is shown through his dedication to always put the customer first, deliver quality over quantity, roll up his sleeves to get the work done, and most importantly, always doing the right thing.” Travis has been chosen to succeed Dave Armstrong who, with a 41-year dedicated career serving the Farm Credit System, has led as President and CEO of GreenStone for the last 14 of those years. Armstrong will Partners — Summer 2022
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Directors’ Perspective :
New Faces As two new Directors take on the role of helping to lead GreenStone on the board of directors, they took time to share a bit more about themselves. Trent Hilding and Marilyn Thelen both joined the board in June bringing varied backgrounds and a diverse perspective.
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Perspective from Trent Hilding
The Hilding farmstead has been in the family for over 100 years. I am the fifth generation to work the dirt on the farm. My wife, Diana and I have four children which we hope will continue to appreciate the opportunity to farm and will become the sixth generation. Currently, the family farm consists of a beef cow herd of 65 head of Simmental/Angus cow calf pairs, along with 2500 acres of irrigated row crops of hay, corn, soybeans, and oats. As the farm grows, I would like to add on farm storage for grain and a fertilizer storage facility. As the kids get accustomed to the cattle on the farm, I would like to make sure we explore all options to diversify that enterprise into something that supports
additional generations coming back to the farm. Why I serve: I decided to serve the GreenStone cooperative to educate myself more thoroughly on the Farm Credit System to be a better resource for my district of borrowers. With the economic times we are in, it seemed like an opportune time to serve and be part of the GreenStone board.
Despite the risks and challenges that lie ahead, there is likely to be opportunity to continue to strengthen the cooperative.
With current inflation, rising interest rates, and mounting input costs, I would like to be involved on the finance committee to make sure we keep members informed and handle changes effectively. The cooperative is strong. We need to continue to keep it strong to handle the transition of leadership as well as the new era of rising interest rates and inflation. GreenStone needs to be able to handle the
Perspective from Marilyn Thelen
My husband Lee and I are partners in Thelen Farms, a 2000-acre cash crop farm raising corn, soybeans, wheat and finishing about 150 head of Holstein steers. We have a reduced tillage operation paying close attention to soil health. We are also partners in Thelen Ag Products, a short-line ag equipment and parts business that sells grain carts, augers, wheels, and other parts. I am the bookkeeper for this business and develop reports for tax planning and preparation, banking and business planning for both operations. A long-time goal has been to build a farm business that is sustainable both financially and environmentally. This continues to be a goal
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many changes that lie ahead, all while being mindful of areas to grow without risking the current position. Despite the risks and challenges that lie ahead, there is likely to be opportunity to continue to strengthen the cooperative. I look forward to my input contributing to the betterment of GreenStone, its members, and future opportunities.
as we look to the future. The volatility of weather, markets and the economy make this goal as important as ever. We feel that building a resilient system is key to weathering the ups and downs of farming. Why I serve: I have worked for MSU Extension for 25 years, many of those years in Clinton County providing science-based education and resources to farmers. GreenStone has been a key partner throughout those years supporting educational opportunities for farmers with both financial support and technical expertise. I am also a partner in our farm and business; when we obtained our operating loan through GreenStone years ago, it was a game changer for our ability to manage the business. When the opportunity to serve on the GreenStone board was suggested, I felt it was way to give back to an organization that had been a partner helping our farm and business to grow as well as a partner during my career with Extension.
A long-time goal has been to build a farm business that is sustainable both financially and environmentally. This continues to be a goal as we look to the future.
I see this as an opportunity to assist the next generation of farmers grow their business. Having a good partner in managing business finances is an important part of success. I would like to be a part of ensuring that GreenStone remains a strong partner for many members. I plan to bring my over 38 years of experience to the table. I have worked with farmers throughout my career and work with Lee on our farm and business. These experiences provide me with perspective. I would like to use my experiences to complement the experience that fellow board members bring to the table. ■ Partners — Summer 2022
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Legislative Matters:
TESTIMONY BEFORE THE U.S. SENATE COMMITTEE ON AGRICULTURE, NUTRITION, AND FORESTRY GreenStone was invited to participate in the first field hearing of the U.S. Senate Committee on Agriculture, Nutrition, and Forestry which was held on April 29, 2022 on the campus of Michigan State University.
The hearing was the first official action on the 2023 Farm Bill. Congress passes a Farm Bill only once every five years. The current Farm Bill was passed with strong bipartisan support in 2018 and expires in September 2023. The Farm Bill is critical to Michigan and Wisconsin agriculture, which supports one in four jobs in Michigan alone. Input from farmers and industry leaders is important to maintain the strength of the industry and the stakeholders is the territory GreenStone serves as part of the Farm Credit System. GreenStone submitted written testimony at the hearing which was entitled Growing Jobs and Economic Opportunity: 2023 Farm Bill Perspectives from Michigan. The hearing focused on agriculture, as well as conservation, rural economic development, research, forestry, energy, and nutrition policies. Among the two panels of witnesses who testified live at the Michigan hearing, many memberowners represented the great diversity of Michigan agriculture. Each witness did an outstanding job when called to testify on the strength of the Farm Credit System and the role GreenStone plays to service the mission to provide necessary financial services in the marketplace. Important to the GreenStone testimony was sharing the overall success of the association and the critical nature of delivering high quality financial services to ensure rural communities and the agricultural industry have a reliable, consistent, and constructive source of financing irrespective of cycles in the economy or the volatility of the financial markets. Farm Credit’s unique cooperative structure means that the customer-owners who sit on our Board of Directors are living, working, and raising their families in rural communities they serve. They are deeply invested in the success of those communities and are interested in finding more ways for Farm Credit
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to contribute to that success. Further, a focus in the testimony was to explain and assure the Committee of the commitment to serve young, beginning, and small (YBS) farmers and ranchers. GreenStone’s CultivateGrowth program and the Farm Credit System overall makes extraordinary efforts to do so. According to the most recent Farm Credit Funding Corporation’s Annual Information Statement, the overall volume of Farm Credit lending to YBS farmers again increased from 2020 to 2021. In addition, the number of new loans Farm Credit made to YBS farmers also increased from 2020 to 2021. This will continue to be a focus for GreenStone to assure the overall mission to agriculture is served both now and into the future. Another key component of the Farm Bill development for the future will be a focus on climate-smart agricultural policy. GreenStone testimony encouraged the crafting of solutions that are voluntary, incentive-based, market-based, and reflective of sound science. From a lending perspective, financing options must be based on repayment capacity. Lenders are not the appropriate avenue to determine efficacy of practices or penalize/incentivize producers based on their farming practices. Simply put, lenders cannot be a referee in this area. We will be keeping a close eye on the development of additional programs in this area and the responsibilities placed on GreenStone and our members in the future. As the clock ticks for the next Farm Bill to be drafted ahead of its 2023 expiration, there is much to do and communicate in anticipation of the expiration. GreenStone will continue to advocate for our members, and provide updates to our members as progress advances! ■
Legislature Tribute In recognition of his retirement, President and CEO Dave Armstrong was recently recognized by legislators for his 41 years of service to the agriculture industry. The special tribute was led by Curtis Hertel, Jr. State Senator for the Twenty-Third District and Julie Brixie, State Representative for the Sixty-Ninth District of which includes the geography of where GreenStone's headquarters resides. The tribute recognized Dave’s legacy leading the loan growth and profitability records of the cooperative, which has resulted in the member value of the 17-year total of $720 million returned to GreenStone members in Patronage. The accommodation was made by a group of legislators acknowledging and valuing the communication, service, and assistance for his legislative efforts in support of the diversified agriculture industry in the state of Michigan at a special reception held at the business offices of Kelley Cawthorne. ■
➡S enator Hertel and Representative Bixby present Dave Armstrong (center) with a tribute for his 41 years serving agriculture.
PAC Progress:
THE ELECTION YEAR IS RAMPING UP...
And the support team for agriculture is proactively working to raise awareness of agriculture policy issues.
The legislative environment is actively involved in a variety of topics, including the Farm Bill. Senator Debbie Stabenow held the first Farm Bill field hearing on April 29th at Michigan State University
and nine GreenStone customers testified on a variety of topics. In addition, GreenStone CEO Dave Armstrong submitted written testimony on behalf of GreenStone and the Farm Credit System.
The success of the MI GreenStone PAC Patronage Campaign earlier this year was followed by deliberation on the recommendations for MI GreenStone PAC disbursements. This process was completed in April by the Board of Directors with perspective from Kelley Cawthorne consultants and the legislative outreach team at GreenStone. Over 30 individuals were identified to be recipients of funds based on their agriculture background, commitment to growing Michigan’s agriculture economy and rural communities, and leadership in the Michigan legislature. Delivery of the funds has begun, including some check delivery in GreenStone branches in order to provide for the establishment of in-district relationships. In Wisconsin, the WI Farm Credit PAC contribution drive showed continued support from members. This is directly allowing the WI Farm Credit associations to collaborate and determine what legislators to support with PAC funds. Focus has been placed on legislators who have led policy efforts that are priorities for the WI Farm Credit Legislative Committee and understand the needs of our Wisconsin rural
communities. We look forward to inviting members to participate in district meetings. The Farm Credit PAC has also been delivering contributions to federally elected legislators both state-side and in Washington, D.C. GreenStone continues to be recognized as a leader in its efforts to support elected officials with information and connections, and it has resulted in strong and positive recognitions of Michigan and Wisconsin agriculture and Farm Credit. We look forward to continuing to build and strengthen the relationship over the next several years. We remain a service for communicating the policy needs of your rural communities and agriculture, and we are hopeful of workable solutions. But, without your support, we are not able to have as positive of an impact. You are commended for your initiative and we thank you for being a champion of rural communities and agriculture. ■
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Mission Accomplished! ➡T he Shields family, John, Cherie, Deanna, Alina, and Chris, stand in front of one of their favorite kayaking and fishing spots.
View a highlight reel video at: www.greenstonefcs.com/YBSFSummer22
Country Living Customer Feature
Cherie and John Shields and their sons had been leasing hunting land for years, but the owners sold it. Heartbroken, they started their search for the perfect recreational property. “I was online constantly looking, but it was John that found it,” Cherie said. “We figured it was already gone, we thought maybe 30 acres was too much, but then we decided to drive there with the selling agent and check it out.” They took their son Andy with them to evaluate the property and see if it met their needs. “Andy is picky, picky,” Cherie said. “But before we even got out of the car, he said – We have to have it. We felt the same. We all fell in love right away.” As the agent showed them around the property, Cherie sat on the porch and wrote up the offer. 29
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The 30 acres, located in Barton City, also came with a furnished mobile home and a travel trailer. “It was just the serenity,” Cherie said about the initial attraction. “It was so quiet, and it was early fall, and the leaves were just beautiful. It was just everything we wanted. I felt really lucky and like somebody was looking out for us.” Her older son, Christopher, took his brother’s word for it being great, and the Shields closed on the property in October 2019. “We have six dogs between our families, and the first thing we did is put up a fence so we could put the dogs outside behind our home,” Cherie said, thinking of her own German Shepherd. “It took us until after dark, so we were using headlamps. But we got it done and were ready for the first night we spent there.” The very next day, Christopher bow hunted and got a deer. The timing was perfect. “It just feels like it was meant to be,” Cherie said. “That’s all I can say.”
LIVE
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we’ll be playing cards, and we can see the bear walk right up to the house,” she said. “They’re pretty to watch from the inside, but I don’t want to be out at a bonfire when it’s walking through our yard.”
Not every lender could work with multiple parcels with a trailer and a mobile home on it...
They have nearby lakes, where they like to kayak. They fish, go for walks, and ride around the property in their side by side and golf cart.
Working with GreenStone
“In the future, we’re just looking forward to keeping everyone happy and healthy – and that goes for our animals and our kids,” Cherie said. ■
Cherie does diagnostic testing on children, age 0-3, for the Monroe County Intermediate School district, and she is a real estate agent with Gerweck Real Estate.
“It’s just beautiful country,” Cherie said. “We just love spending time here.” Their son Christopher and his wife Deanna have two dogs, Molly and Allice, and a daughter named Alina who also loves to bring her friends up to kayak, canoe, and fish. Their son Andy and his wife Kirstie, who also spend time with them, are expecting a baby they plan on introducing to the property. At home in Lasalle, Cherie and John take care of their 11-acre farm, which includes five horses and three basset hounds. John recently retired from a 33-year career at Ford, and now works for a farmer helping to harvest hay.
“This was my first time working with Brian Young from GreenStone,” she said. “I previously had a client that wanted to use him, and when we found the land we wanted to finance, I knew right away to use GreenStone.”
➡K irstie and Andy Shields pictured with their dog, Mara.
Brian has been a GreenStone financial services officer for several years and already knew of Cherie because of her work as a realtor. He was happy to help her family finance a unique piece of ground. “Not every lender could work with multiple parcels with a trailer and a mobile home on it, because that complicated things a little, but we were able to finance it,” Brian said. “It was nice to be able to help Cherie obtain a piece of property where the goal is a family who wants to spend time together.” Overall, the entire process went smoothly. “I’d heard so many good things from people, and Brian and Marlene Langerman [customer service representative in GreenStone’s Monroe branch] have been nothing but wonderful,” Cherie said. “When I call, they know the answer right away – I don’t have to wait.”
➡T he Shields' up north paradise is perfect for hunting, ATV riding, and making family memories!
Recreation
Aside from hunting, they also use the land for additional recreational purposes. They enjoy spending time with the deer, turkey, and bears that visit the property. “We have a bay window, and Partners — Summer 2022
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IT’S SUMMERTIME IN MICHIGAN! By: Jenny Ciolek Producer, Michigan Out of Doors TV We are blessed here in Michigan with four defined seasons, each offering its own splendor and beauty to enjoy. While my favorite season will always be fall, I still look forward to those summertime traditions only Michiganders know and love. With such a wide variety of activities to take part in during the summer months, there’s never a lack of places to go and things to do in our Great Lakes State. If you’re up for a road trip, the Upper Peninsula is a showcase of the best in outdoor adventure. Visit the Porcupine Mountains for wilderness camping, Isle Royal for world class hiking adventures, the Pictured Rocks National Lakeshore for a breath-taking kayak tour, or anywhere in the Upper Peninsula to take part in lighthouse tours and fishing the big lakes for lake trout – a time-honored Yooper tradition!
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Michigan’s islands are as diverse as the state itself. Take an islandhopping adventure and see iconic Mackinaw Island for a trip back in time and enjoy being a tourist in your home state. Spend a weekend golfing on Drummond Island, or take the plane ride over to Beaver Island for a bike tour of Lake Michigan’s gem. Head to Detroit and take the bridge over to Belle Isle for a serene retreat in this peaceful sanctuary in the shadow of the city’s skyline. Take the Harsen’s Island ferry across the North Channel of the St. Clair River to enjoy some of the best panfishing around. Visiting Michigan’s many islands is a great family-friendly geography lesson and a wonderful way to see some sights off the beaten path.
Speaking of a summer harvest, many farms across the state offer “you-pick” strawberries, blueberries, peaches and cherries. What a fun way to enjoy homegrown deliciousness in your own community! With a name like the Great Lakes State, it’s no secret there are beaches galore to enjoy this summer. If sand isn’t your thing, you may like to hop aboard one of Michigan’s many tour boats to see the sights and sounds of the Great Lakes from a different perspective.
From the Detroit River to Port Huron, and Alpena to Munising, there are boat tours leaving the docks every day to show you around our plentiful fresh waters. Summers in Michigan really can’t be beat. With unending opportunities for boating, bonfires and exploring, we live in one of the nation’s best-kept secrets for outdoor recreation. If you find yourself wondering what you and your family can get out and do this summer, look no further than your own beautiful state. Our great outdoors is the most easilyaccessible resource, and it’s full of never-ending adventures just waiting for you to explore! ■
COUNTRY LIVING BLOG BRIEF GreenStone publishes regular updates on our Open Fields blog. Check out some of the posts you may have missed at www.greenstonefcs.com/openfieldsblog. Country Minute: Costs Beyond the Mortgage When it comes to planning ahead and saving money, knowing all the hidden costs of owning a home is key in being fully prepared. Whether you’re a new homeowner or in the home buying process, Joel Norkus, Financial Service Officer in Grand Rapids, shares insight on what costs to expect.
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With growing popularity of wine in recent years, summer is a fun time to explore Michigan’s many wineries. Traverse City made wine-tasting popular in the northwest part of the Lower Peninsula, and is still home to some of the largest wineries and vineyards in the state. These days, it seems there’s a winery in just about every county, making it a breeze to explore all the different flavors grown and harvested right here in Michigan.
Summer 2022 — Partners
Country Minute: House Hunting Tips – What to Know Before You Go Whether you’re a first-time buyer, or you’re a veteran to the process, you can plan ahead for the best methods to be ready when the house of your dreams is available. Stephanie Lundy, financial services officer in Adrian shares several insider tips.
Country Minute: Buying vs Renting Home ownership is part of the American dream…but so is financial stability. We want to you to be successful in both areas, so let’s discuss the tax benefits for building, buying, and improving a home. ■
CAMPING OR GLAMPING? -TIPS AND TRICKS TO MAKE ANY TRIP SUCCESSFUL Are you looking for relaxing getaway, a night under the stars, and the serene sound of nature? Well, then camping is the perfect summer getaway for you and your family. Camping allows you to escape the hectic city, enjoy nature, and bond with family without distractions. If you are new to idea of camping, planning a trip can seem intimidating at first, so here’s a few tips and tricks that are guaranteed to make any trip successful! First, start off by identifying what type of camping you prefer- are you a more of a tent in the woods or camper with AC sort of person? For any trip, you must first start off by selecting the campsite. When selecting a campsite, check what amenities are available; for example, washrooms, firepits, and picnic tables. If you are choosing the “glamping” route for your trip, then you’ll need to check for full hook ups to run electricity and water to your campermake sure to know what electric amp your camper will need! You’ll also want to consider specific features such as a great view or close to water, location from the bathroom, and shade. In the mid of summer, there is nothing worse than the sun beating down on your tent, a ten-minute walk to the restroom, and a hike to the nearest pool/lake. These few features can turn a mediocre trip into the best trip of the summer!
After booking your spot, you’ll need to start packing. For tent campers, a sleeping bag is the first item on the necessity list. You’ll want to pack one sleeping bag per person to add comfort to the tent and stay warm during the cool summer nights. Depending on your desired comfort level, a sleeping pad and/or cot can also come in handy. No matter where you are, the weather is extremely unpredictable. Having waterproof gear and a tarp for coverage can make or break your camping trip. Now that you’re prepared for sleeping and the weather, you’ll need a few essential items such as a lantern or headlight. When sitting under the stars, it gets a lot darker than some may expect. If you want to enjoy a game of cards or read a book, you’ll appreciate the extra light of a lantern. Meals are another important area of preparation - you can only make hamburgers and hotdogs so many days before the family gets tired of eating them. If you’re planning on cooking over the fire, meals can range from hamburgers, hobo pies, freshly caught fish, or even chili. The best plan is to decide on a menu beforehand to guarantee you’ll have all the necessary ingredients, pans and utensils! Glampers will have a much easier time with meals, but planning a menu is still necessary for the pre-trip grocery shopping! As you think through your upcoming camping trip, make a list of items for each experience you have in mind and check off items as you go! Now that you’re fully prepared for your trip, the countdown to relaxation begins. Start a daily countdown with your family to build the excitement for your adventure! And remember the best tip is to stay off electronics and enjoy your time in nature fully without distractions. ■
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STAYING ACTIVE WHILE TOURING THE STATE Combining an active lifestyle with a love of traveling can create a very enjoyable and fit summer vacation. While traveling around the beautiful states of Michigan and Wisconsin, there are lots of activities you can participate in ranging from 5Ks, biking, and kayaking. Enjoy the scenic views kayaking around Pictured Rocks, biking around Mackinaw Island, and hiking to the Big Manitou Falls during a relaxing trip to the many tourist attractions around Michigan and Northeastern Wisconsin In the Traverse City area, the summer races begin in late June. The Glen Arbor Solstice Half-Marathon is a half marathon and 5k run/walk around Big Glen Lake and the quaint town of Glen Arbor. Then, as part of the National Cherry Festival in July, there is the Meijer Festival of Races, with a 5K run/walk and a 15k. After the races, enjoy the shops in downtown Traverse City, relax at a local winery, or take a visit to Old Mission Light House on the alluring Lake Michigan. While visiting Sleeping Bears Dunes National Park, participate in the M22 Challenge. The M22 Challenge is a
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triathlon beginning with a 2.5 mile run through the Sleep Bear Dunes Lakeshore, a 100 yard climb up the infamous sand dune, and a sprint back to the event's starting point. After the running, bike 17 miles along Northern Michigan's most scenic bike routes along the Crystal River, Little and Big Glen Lake, and through a tunnel of trees. Then, finish the challenge with a 2.5 mile paddle across Little Glen Lake. This will leave you breathless in many ways, as it's been called the most beautiful race in America. After exploring the Great Lakes State, head over to Wisconsin to enjoy the many natural wonders around the state. Hike to the Big Manitou Fall, the fourth tallest waterfall east of the Rocky Mountains. Or on a hot summer day cool down while exploring the Cave of the Mounds, known as the jewelry box of Americas major caves. Head over to Door County, WI, the Cape Cod of the Midwest, for a series of triathlons the whole family can enjoy. For the experienced competitors, the half iron course begins with a 1.2 mile swim in the clear blue waters of Horseshoe Bay. Then a 56 mile bike route includes a stretch for 13 miles along the shoreline of the bay
before a challenging double-loop through the bluff area north of Sturgeon Bay. This course is not for the weak, as after the challenging bike ride the competitor must finish with a 13.1 mile run through the infamous Bluff Pass Road. If this challenge sounds too advanced for you, try the Sprint Distance race instead. This race includes a quarter-mile swim and an extremely flat bike and running course. If your children are interested in being involved as well, enter them into the Kids’ Triathlon, where they can swim, bike, and sprint a smaller version of the above races. In the great states of Michigan and Wisconsin you will never run out of activities to participate in. Whether you want to stay close to home, travel a few hours, or cross the state borders, there is no shortage of options to consider. Although, if you want to stay active on your own without a race, there’s ample opportunity to hike, kayak, bike, and run in any of the many trails and rivers around the states. Make plans to explore your home state and enjoy the many hidden treasures it has to offer. ■
Commodity Cuisine... American Lamb Burgers For the Lamb Burgers • 1 ½ lbs ground lamb • kosher salt • freshly ground black pepper • 4 burger buns Herbed Yogurt Sauce (tzatziki): 1 cup Greek yogurt • 3 Tbsp fresh dill finely chopped • 2 Tbsp fresh mint finely chopped • 1 tsp lemon zest • 1-2 Tbsp fresh lemon juice • ¼ cup cucumber minced • 1 clove garlic minced • 1 tsp kosher salt • ¼ tsp freshly ground black pepper Directions To make lamb burgers: Divide ground lamb equally into 4 portions. Flatten into uniform rounds, then use your thumb or finger to make a small indentation right on top in the center of each patty. 30 minutes prior to cooking, sprinkle each patty generously with kosher salt (about ½ tsp per burger) and freshly ground black pepper (about ¼ tsp each) on both sides. To make herbed yogurt sauce: Add all sauce ingredients in a large bowl, then whisk to combine. Refrigerate until needed. To cook lamb burgers: Preheat a grill, cast iron skillet, or griddle over medium-high heat. Coat with nonstick oil spray (if grilling) or a couple tablespoons olive oil (if cooking indoors). Cook each burger patty for 5 minutes per side, or until an internal temperature of 150 F is reached (for medium). Allow burgers to rest 2-3 minutes before serving on buns with herbed yogurt sauce and additional toppings. ■ Special thanks to Great Lakes Lamb for cooking up this recipe on our recent visit to their farm. Partners — Summer 2022
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LEARN
➡T he Auer family stands strong together, after relying on their business partners to help them rise above more adversity than any one farm - or family - should have to experience.
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A POSITIVE OUTLOOK Tax & Accounting Customer Feature
accountant to GreenStone was a smooth process. Part of the ongoing success of the relationship is the improvements they’ve made in the way they work together.
His positive attitude has come in handy during some of the past events on the dairy, including multiple natural disasters. Through it all, Grady has successfully steered his farm in the right direction.
she is a special education teacher, not an accountant. So of course we have questions on what categories we put expenses into, if items need to be expensed, or if we can depreciate them.”
“We made suggestions on getting set up on QuickBooks and what information to provide to us,” she said. “He also is working with a dairy analyst, so I assisted him in getting set up, so as to provide the dairy information needed for the analysis. Basically, these steps have made it much easier for everyone to determine what action is needed in making sound farm business decisions, including having a better handle on where he is financially and providing related tax planning strategies.”
He began as a partner with his dad, and after he passed eight years ago, Grady entered into partnership with his mom, Tina. On their farm they milk 550 cows with seven full-time employees, plus two helpers who are always with Grady – his son Griffin and nephew Ira.
Kandace has worked in GreenStone’s Clintonville office for eight years. She’s been through transitions before and worked with Grady to help ensure the farm’s transition from the previous tax
Grady was no stranger to GreenStone, as his dad was a long-time customer and cosigned his first loan on a calf when Grady was only 15 years old. Unfortunately, the calf didn’t last long.
“I don’t allow current circumstances to dictate my mood,” said Grady Auer, owner of Bakake Acres in New London, Wisconsin.
“The story is my mom put me on her back to feed calves when I was six months, so since I’m 38, now I’ve farmed for 37 and a half years,” he smiled and said. Improved tax and accounting
Grady was using a different tax accountant for years, but in 2017 he made the business decision to transition to GreenStone’s senior tax accountant Kandace Haegele in the Clintonville office. “I like working with Kandace because she works with whatever I bring to her,” Grady said. “Along with accounting, she also does our tax forms, and twice a year we send our QuickBooks accounts to her. She reviews it, tells us if we have errors, and answers our questions. My wife Sarah does the books really well, but she reminds me ➡L ike Grady did as a child, farming continues to be a full family hand-on experience at Bakake Acres!
View a highlight reel video at: www.greenstonefcs.com/TAXSummer22 Partners — Summer 2022
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Tax Calendar...
I know my taxes are different than my loans, which are different from my crop insurance, but it’s still all in the same location.
“My dad cosigned a loan so I could buy a show heifer, and she abruptly dropped dead,” Grady shared sadly. “Thankfully she was insured, so we bought another one right after that.”
“Grady is very good dairyman, he’s a great guy, and he’s really stepped up his business acumen over the years,” Corey said. “His work with his dairy analyst has also helped him perform even better.”
This stunning experience didn’t sour him on the entire animal showing scene, as he met his wife Sarah at the county fair.
Corey worked with Grady through some tough times on the farm, including in 2018 when a blizzard caused their barns to collapse.
“She asked to wear my jersey – football, not cow,” Grady joked. “She also grew up on a progressive farm in Wisconsin. Now, our family shows heifers all over.” One stop shop
Eventually, along with the existing lending partnership and tax and accounting services, Grady also switched his crop insurance provider to GreenStone. “I was always talking to Robert Netrefa, the GreenStone crop insurance specialist, about what decisions to make even though I was buying it through someone else,” Grady said. “I went to a GreenStone conference where he was the speaker, and I thought he had great knowledge about what was going on.”
“I was given another shot to do it correctly, and I took it,” Grady said.
“Certainly the advantage is that it’s a onestop shop,” Grady said. “I know my taxes are different than my loans, which are different from my crop insurance, but it’s still all in the same location.”
“I was picking up my son from daycare, so no one was home,” he said. “I’d thrown laundry into the dryer before I left. We drove home and saw the house was on fire, and it was a total loss.”
Clintonville has a new office building, which features lots of glass to create an open atmosphere.
Happily, they were able to rebuild in a location closer to the farm.
Corey Fanslau is VP of traditional lending at GreenStone, and he’s been working with Grady for over ten years. 37
Despite the unfortunate event, Grady made the most of his circumstances and took the opportunity to make his barn even better. The new barn is able to hold more weight, is stronger and wider, and has improved lighting.
Beyond tax and accounting support, plus the insurance, Grady uses GreenStone for financing.
Cleaning up
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“I haven’t done laundry since,” Grady joked. “Better safe than sorry.” Grady and Sarah now have four children – Griffin (13), Emery (10), Macy (7), and Brynn (2). Grady really enjoys his time on the farm with his kids and nephew, whether they’re feeding calves or setting off bottle rockets.
Non-farm employers file Form 941 for the 2nd quarter to report Social Security, Medicare, and withholding. Form 5500 is due for all employers that maintain an employee benefit plan, such as a pension plan. If not able to file, file form 5588 to request an automatic 2.5 month extension.
SEPTEMBER
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3rd quarter estimate due for 2022 for individuals that pay estimated taxes. S Corporations file a 2021 calendar year income tax return (Form 1120S) if you requested an automatic extension.
“We had to send half of our cows to another farm to be milked. For four months, since our income was down, we only paid interest,” Grady said. “That was Corey’s idea. He knew we’d rebuild and get our cows back.”
Grady has experienced more than his share of natural disasters on his farm, including a pile of bales that was struck by lightning, a shed that burned in 2005, and tragically, a house fire in 2010.
“It’s just like going to the supermarket,” Grady said. “I like this, and this, and I can get this – all in one place.”
AUGUST
Partnerships file a 2021 calendar year income tax return (Form 1065) if you requested an automatic extension Corporations deposit 3rd installment of estimated tax for 2022.
OCTOBER
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Individuals file a 2021 income tax return (Form 1040) if an automatic extension was requested Corporations file a 2021 calendar year tax return (Form 1120) if you requested an automatic extension. Non-farm employers file Form 941 for the 3rd quarter to report Social Security, Medicare, and withholding.
“We also like to go to our children’s events, which is a full time job,” Grady said. Grady looks forward to continuing his partnership with GreenStone, and he is confident his GreenStone team will be ready to assist him in his good times and his notso-good times – even though his attitude remains unchanged. “Some years the farm makes money, some years it doesn’t – I’m not complaining,” Grady said. “If we don’t make any, I have less tax work to do.” ■
CROP INSURANCE NEWS: CLAIMS & APPRAISALS
HAIL INSURANCE: It is not too late to purchase hail insurance for 2022. Hail is a separate policy from your multi-peril crop insurance coverage. As an added bonus, your hail policy can provide coverage for fire, lightning, vandalism/ malicious mischief and transit to the first place of storage. Rates and coverage can vary by crop and county. Keep in mind, hail insurance must be purchased before damage occurs. Contact your GreenStone crop insurance specialist today to set up an appointment to review your options. ■ IMPORTANT DATE REMINDER!
Most producers have been there before. No matter what you do during the growing season, sometimes Mother Nature just will not cooperate, and you are anticipating your yields may fall below your crop insurance guarantee. This is never the situation you hope for, but that’s why you purchased crop insurance to begin with. If you do find yourself in a claims situation, there are some important things to remember that can help the process go most smoothly. Many times, money is left on the table because these guidelines are not followed. Don’t lose out on a potential indemnity because notification was not done on a timely basis. • Perils- The vast majority of naturally-caused perils are included under multiple-peril crop insurance (MPCI) coverage. This includes but is not limited to: adverse weather, failure of irrigation water supply, fire, insect damage or plant disease (unless you improperly or insufficiently applied pest or disease control measures) and wildlife damage. Those covered under Revenue Protection are also protected from a decline in market price. • Timeframe- Insurance coverage generally begins at time of application or time of planting, whichever is later. The end of the insurance period is generally recognized as the earlier of: total destruction of the crop, final harvest of the crop, abandonment of the crop, or the end of the insurance period (which is December 10th for corn insured as grain and soybeans). • Insured’s responsibilities – For planted crops, the insured must notify the insurance company within 72 hours of the initial discovery of the damage or production loss, but no later than 15 days after the end of the insurance period,
even if the crop has not yet been harvested. If you have a revenue protection policy and have a claim based on strictly price, the insurance company must be notified within 45 days of the harvest price announcement for the crop. •A ppraisals- If you are going to harvest your planted crop in any non-traditional manner, a crop appraisal needs to be completed, otherwise you may lose out on a potential indemnity payment. The most common time an appraisal is needed is when you’re going to chop corn for silage that is insured as grain. If you have a corn policy, any acreage that is not harvested traditionally as dry grain should be appraised. You should contact your GreenStone crop insurance specialist at least a week in advance of when you are planning on harvesting so it can be arranged for an adjuster to perform the appraisals while the crop is still in the field. In the event you harvest before an adjuster is able to perform appraisals, representative sample strips must be left in the fields so the adjusters can use them for appraisals. The strips must be at least 10 feet wide and run the entire length of the field. If you do not agree with the appraisals you’ve gotten from the adjuster, do not sign them. Call your crop insurance specialist right away and to have another adjuster come out and perform a second appraisal. Throughout the whole claims adjustment process, if you ever feel uneasy or that something doesn’t seem right, contact your crop insurance specialist as soon as possible. Obviously no one wants to have a claim; producing a bumper crop is much more enjoyable than receiving a large claims check. Remembering these key points will help make the process go that much better. ■
Late fees will be charged on any unpaid premium on October 1st. Please make note of this important change as late fees cannot be waived. If you cannot pay your premium before the due date, please contact your crop insurance specialist to make payment arrangements. Payment is due regardless of whether or not you have an outstanding claim. ■ 2022 FALL WHEAT & FORAGE CLAIMS Appraisals are required when a customer plans to do something with the crop other than harvest in the normal manner. If you do not plan to take your wheat/forage to harvest, we must appraise the acres prior to destruction. ■
FORAGE PRODUCTION If you think you may be facing a forage production loss, make sure to contact your specialist to file a claim. If you didn’t have forage insurance for the 2022 crop year and are interested in coverage for 2023, the sales close date is the same as wheat, September 30th. ■ Partners — Summer 2022
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New Micro Farm Crop Insurance Policy now Available Risk Management Custom Designed for Small, Specialized Farms The Federal Crop Insurance Program has been available for decades. It has been the primary platform to provide quality risk management to many of our country’s agricultural producers. Historically, the program aimed most of its resources at creating products to serve the most prevalent commodity crop industries, which are no doubt an important pillar of our agricultural framework. Until recently, specialized small farmers and specialty crop producers had inadequate access to policies as robust as those for commodity crops. Through the last two Farm Bills, that direction has began to shift! Through the implementation of the Whole Farm Revenue Protection program (WFRP)
in 2015, and enhancements to most specialty crop policies, producers have seen an increased quality and availability of subsidized federal crop insurance. The most recent of these coverage enhancements is the creation of the Micro Farm crop insurance policy, which is a style of WFRP. Micro Farm crop insurance provides a revenue safety net for all commodities, and allowable value-added products, under one insurance policy. The 2022 policy is tailored for any farm with up to $100,000 in approved revenue, and was built to cover many styles, such as specialty, organic, regional, locally marketed, direct market and farm-identity preserved. This policy is available in all 50 states and
covers losses due to unavoidable natural causes that occur during the insurance period, meaning our diverse Michigan and Wisconsin small farmers who face Mother Nature anomalies thanks the Great Lakes now have a solution to help protect them! Coverage is available from 50-85% of the producers approved revenue. Sales close for the 2023 crop year is November 20, 2022 for late fiscal tax filers, and March 15, 2023 for calendar year or early fiscal tax filers. Who would benefit from this policy?
A wide array of producers could benefit from the Micro Farm insurance policy. Because it covers both revenue from commodities, as well as revenue from value added products such as lotions from lavender, wine from grapes, or honey products from bees, Micro Farm can be utilized by many kinds of operations. There are certain documents you must provide to your crop insurance specialist to get Whole-Farm Revenue Protection insurance. • A Whole-Farm History Report with a minimum of 3 consecutive years of Schedule F or other farm tax forms (it must be possible to complete a Substitute Schedule F form if you filed farm tax forms other than Schedule F). For the 2022 policy year, tax forms from 2019-2021 are required. • If you have not yet filed taxes for the most recent tax year, a Substitute Schedule F must be submitted for that year. • If you are a tax-exempt entity (such as a Tribal entity) and have acceptable thirdparty records available, those can be used to complete Substitute Schedule F tax forms. Visit www.rma.usda.gov/en/Fact-Sheets/ National-Fact-Sheets/Micro-Farm-Program for more details.
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Summer 2022 — Partners
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We recognize the importance of having options available to farmers of all commodities, sizes and practices...
GreenStone has a dedicated Fruit and Specialty Crop Insurance team of agents throughout Michigan and northeast Wisconsin who focus on policies such as the new Micro Farm. Having written 77% of the policies in our territory thus far, we are continuing to meet with more producers to educate them on this policy and its potential benefits to helping them manage risks that are outside of their control. We recognize the importance of having options available to farmers of all commodities, sizes and practices and to be able to consider this policy as another tool for those who didn’t have many crop insurance options historically. Through GreenStone’s CultivateGrowth program focused on providing support and solutions to assist young, beginning and small farmers, along with our commitment to Micro Farm education, we take pride in extending resources to help ensure the success of our smaller farmers, which help both our urban and rural communities thrive. From insuring cut flowers, to blueberries and cherries, we have
already seen positive results from the first year with Micro Farm policy available. This policy can be utilized for producers with urban gardens in Detroit or Green Bay, to rural farm stands in southwest Michigan and the Upper Peninsula. There is also potential for this to benefit small local livestock producers, roadside vegetable stands, lavender farms selling lotions and farm market farmers selling produce and baked goods. GreenStone’s territory of Michigan and northeast Wisconsin is some of the most agriculturally diverse areas in our nation. We are committed to ensuring equal access for our customers to all of the products the USDA’s Risk Management Agency has in order to help build unparalleled risk management for our hard working farmers. If you have any questions about the Micro Farm crop insurance policy, or others, please reach to your nearest GreenStone branch to find out more. ■
BEFORE YOU CHOP!
FRESH APPLE REVIEWS
It won’t be long until it’s time to fill the bunker silo. Before chopping corn for silage, please call and arrange for an appraisal ahead of time. Every effort will be made to have your crop appraised . ■
Please remember your fresh apple policy can be singled out for a fresh review at any time during the year or at claims time. You will be asked to prove you have sold your apples as fresh and at what price they were sold at. The requirement is that 50% or more were sold as fresh, at a fresh price in at least one out of the last four years. Call us if you need more information regarding what documents can be submitted and what needs to be on those documents. If you cannot prove fresh sales, RMA requires that your apples be changed to processing for the current crop year. ■
Crop Insurance Calendar... JULY
1 15
Forage & Fall Wheat Premiums Billing Date Spring Acreage Reports Due & Processing Beans Final Plant Date
AUGUST
15
Spring Premium Billing Date
SEPTEMBER
30
Wheat, PRF & Forage Production Sales Close Date. All changes need to be completed by the September 30 deadline! If a signed application is not returned, your policy will automatically renew at the same level you insured at during the previous crop year.
30
End of Insurance Period (loss reporting deadline) for Peach & Blueberry
OCTOBER
15
Forage Underwriting Report Signature Due
25
Wheat Final Plant Date*
31
End of Insurance Period (loss reporting deadline) for Fall Crops
31
Final Claim Reporting Date for Dry Beans
* P lease note that some dates can vary by County. Please check with your crop insurance specialist for specific dates if you are unsure.
Partners — Summer 2022
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i Tech Tip: Scammers and
Public Information – Be Informed! Matthew Cosgrove GreenStone VP of Information Security
Data breaches and cyberattacks continue to make the nightly news. Just within the last few weeks Microsoft was targeted with a zero-day vulnerability that allowed malicious code to be installed through an email attachment without the recipient even needing to open the file. 41
Summer 2022 — Partners
Once the code is executed, the bad actors can gain control of the workstation. Scammers also have access to a treasure trove of public records. Public records are supposed to provide a means to promote government openness and transparency. These records supply information about people, properties, taxes, and other issues. This information includes court documents, marriage certificates, and public mortgage records which includes the amount borrowed, the interest rate, loan term and the institution that hold the mortgage note.
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The amount of exposed data and public information create the perfect foundation for scammers to build communication that is tailored to you. Public information is not only used by cybercriminals, but also by companies trying to get your business for all types of goods and services. As an example, many of us have received mail soon after closing a loan that references the mortgage company and loan, it may try to raise alarm or suggest a better alternative. Several are designed to look like it’s coming from the actual mortgage company, and nearly all of them will include specifics about your loan because that information is required to be public record. There are a handful of ways companies can obtain that information. One potential way is they buy that information from the financial service provider – GreenStone does not sell that information, but some companies do. Another way they obtain this information is from creditors, after you met a certain credit criterion. This is often referred to as a “prescreened” offer. Lastly, this information can be found on the internet using tools that search Online Public Records. Usually all they need is your name and address of the property they are targeting.
GreenStone will never ask you in an email message to update your confidential information or to provide a PIN, account number, social security number, username, password, or other similar information. We advise our customers to never respond to any email, call, or mail that asks for such information, even if it appears to be from GreenStone or another financial institution you have a relationship with. If you are unsure of the authenticity of a communication, contact us to confirm. If you suspect fraud has occurred in connection with your GreenStone accounts, please notify us immediately, by telephone or email, and we will promptly assist you in resolving the matter. Send concerns to info@greenstonefcs.com or call 855-895-2761. The Federal Trade Commission highlights on their web page two steps that individuals can take to help reduce the number or unsolicited mailers - https://www.consumer.ftc.gov/articles/0127-gettingmortgage-offers 1. C all 1-888-5-OPTOUT (1-888-567-8688) or visit www. optoutprescreen.com to opt out of prescreen offers. 2. P ut your phone number on the federal government’s National Do Not Call Registry to reduce the telemarketing calls you get at home. To register your phone number or to get information about the registry, visit www.donotcall.gov, or call 1-888-382-1222 from the phone number you want to register. ■ (SAMPLE SCAM MAILER)
The amount of exposed data and public information create the perfect foundation for scammers to build communication that is tailored to you. How do you protect yourself from falling victim to these attacks?
With any mail or email message, trust but verify. For emails, never open email attachments, call phone numbers or click on URLs from senders you do not know or from emails you were not expecting. It only takes only wrong click or call, and you could get a computer virus or end up supplying your username and password into a “look alike” login page to your bank or email account.
(SAMPLE SCAM MAILER)
With any mortgage mailer – knowing how that got the information goes a long way. Most of these mailers catch us by surprise because we are unaware that the information included on the letter or postcard is public information. It's even more difficult because there's not any one thing that can confirm it is junk mail. Most will have a postage label that says something like “presorted,” but that's not only used on junk mail, in fact this magazine has a similar postage on it. Another indicator may be the odd use of words in all “CAPITALS” like your name, mortgage amount or Lender, though this can also be a normal practice for some credible businesses. You may have to be thoughtful in your review to determine it if it is legitimate or not. Partners — Summer 2022
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3515 West Road East Lansing, MI 48823
Summer feature highlight... Cherie and John Shields and their sons had been leasing hunting land for years, but the owners sold it. Heartbroken, they started their search for the perfect recreational property. Read more on page 29.