GreenStone FCS
Winter 2019
Promoting the business success of our customers and the rural community
FAMILY
TRADITIONS Matthes pg. 5
+W inter 2019
Market Outlook
+M ember Patronage + Farm Profitability
WINTER 18 5 YBSF Feature. When Caleb and Kate Matthes took on the ownership of the Matthes Christmas tree farm (no relation), they became the gatekeeper of Christmas traditions and memories for hundreds of families.
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CUSTOMER BILL OF RIGHTS.
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25 GreenStone Story. GreenStone’s customer bill of rights is our commitment to all customers.
27 Country Living Feature. When humans connect with animals, a special bond is created. When that bond becomes an anchor in difficult times, it can be life changing.
37 Accounting Feature. In today’s tight agriculture economy, knowing how every dollar is spent, and its subsequent impact on the farm’s financial strength, is increasingly more important to the sustainability of the farm. For dairy farmers, like the Plattes, analyzing their business by small increments versus a “lump sum” gives them a better understanding of the true costs within their farm.
3 CEO Comments. President and CEO, Dave Armstrong, recaps 2018 and looks to the future.
29 Winter Car Care. For car owners, snow and ice present the worst possible conditions for operating a vehicle.
9 Market Outlook. Bob Utterback highlights the factors that will shape the 2019 commodity market.
30 Health and Wellness. Yes, it can be tough to get motivated when the wind is howling or the snow is blowing, but don’t give up all thoughts of staying active.
13 Guest Column. There will come a time during a family businesses succession journey when progress requires successors to learn, grow and flourish. This is some of the hardest work of succession. 15 Guest Column. As we continue another harvest with low commodity prices, most producers are wondering where to look next to maximize their profitability. Finding those requires more insight and evaluation of your business.
31 Guest Column. Sometimes a single antler shed can keep you in a stand all season long, hoping for just one encounter with that specific buck.
12 Blog Brief
17 Patronage Returns 18 Member News 18 Candid Comments
22 Directors’ Perspective. Continuing the theme, three directors share what is important to them and why they believe GreenStone is the cooperative to help them accomplish it! 23 Legislative Matters. A Farm Bill passed with the help of many communicating its importance. Now it is time to discover and apply the opportunity.
24 PAC Progress. Your MI GreenStone PAC and WI Farm Credit PAC finished 2018 strong with meetings and checks being delivered to both Senate and House of Representative legislators and 2019 candidates.
19 Calendar of Events 20 Pause for Applause 21 Behind the Scenes
Publisher’s Note: “There’s no “i” in TEAM!” We’ve all heard this saying, and while it may be overused or cliché, it sure seems appropriate as we start 2019 with a review of our cooperative customer bill of rights and announcement of patronage returns. GreenStone is a cooperative, an association of members served by a lineup of staff, all working together as a team, committed to a dependable, financially sound future for all. Like a team, our staff, our members, nor GreenStone can be prosperous all alone. It takes each of us on a team, each making a strategic and significant contribution, to be successful. It starts with our members, and because of their dexterity and dedication to all they accomplish each day, each year, GreenStone is returning $82 million to members on March 14 through our patronage program. That’s $400,000,000 the cooperative has returned since 2005; 400 million dollars, 400 million thanks, 400 million acknowledgements of the cooperative team’s accomplishments. With every dollar is a commitment to our customers – their cooperative rights. Personalized service, prompt responses, honest and fair treatment, confidentiality, and accurate information all come with our core promise in cooperative membership. Together, as a team, we are best positioned to experience success, for our members and their operations. Also in this issue, three members share their success in working with GreenStone, starting with the team who is focused on preserving Christmas traditions on their tree farm, the bond conserved through alpacas and a farm made whole with experts completing the team. As we cruise into 2019, we thank you for being a part of the GreenStone team! Happy reading,
33 Blog Brief
– Melissa
34 Commodity Cuisine... Traditional Beef Stew
35 Crop Insurance News
This newsletter is published quarterly for the customers of GreenStone Farm Credit Services.
35 Crop Insurance Calendar
Editorial Laura Moser Melissa Rogers
Art & Design William Eva Annah Horak
36 Tech Tip 38 Tax Calendar
Partners GreenStone Farm Credit Services 3515 West Road East Lansing, MI 48823 800-444-3276 marketing@greenstonefcs.com
CEO Comments:
Recapping 2018 and Looking Ahead I HOPE THIS ISSUE OF PARTNERS FINDS YOU WELL AFTER HAVING SHARED QUALITY TIME WITH FAMILY AND FRIENDS OVER THE HOLIDAYS. AS ALWAYS, THIS ISSUE OF PARTNERS CONTAINS AN ARRAY OF NEWS AND INFORMATION WE BELIEVE YOU WILL FIND OF VALUE. IN PARTICULAR, I WANT TO DRAW YOUR ATTENTION TO THE ANNOUNCEMENT ON PAGE 17 REGARDING PATRONAGE. IN ADDITION TO PROVIDING CREATIVE SOLUTIONS AND RESOURCES TO OUR MEMBERS, WHILE HELPING YOU MANAGE THE CHALLENGES OF THE CURRENT AGRICULTURE ECONOMY, WE ALSO RETURN PATRONAGE DIVIDENDS EACH YEAR SINCE 2005. Over the years, the association has been able to increase the percentage of its earnings shared while maintaining adequate levels of capital to help ensure a dependable source of credit. On behalf of the board, I am pleased to announce GreenStone will patronage approximately 45 percent of its 2018 net earnings for a total of $82 million that will be paid to eligible members on March 14, 2019. This is a 60 percent increase from 2017’s total payment of $50 million and brings the 14-year, life to date, total paid through the program to $400 million. On average, this relates
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to returning over 1.00 percent of the interest paid by members this past year! While we understand patronage alone cannot sustain some member’s financial situations, in these difficult times it does provide a tangible example of GreenStone’s commitment. Our members deserve a sound cooperative and we thank you, because it all starts with you!
Last year, GreenStone team members provided hundreds of hours of industry and community volunteer support to promote agriculture, serve our local communities, and help others in need. In addition, GreenStone contributed over $700,000 in support to amplify resources available to youth; young, beginning and small farmers; and our communities.
While patronage is certainly a clear value in tough times, it isn’t the only thing that sets GreenStone apart. I would be remiss if I didn’t provide a shout out to our GreenStone team members who work tirelessly to exceed our members’ expectations. Particularly those you interact with on a regular basis in your branch office. They truly understand what many of our members are experiencing in these difficult financial times and are doing all they can to assist you by being good listeners, expressing empathy, and providing financial counseling, in order to be there for you when you need it most. In fact, many of them share the emotional stress experienced by customers as this agricultural “recession” drags on.
Our success is a reflection of our members’ success. We continue investing time and resources to help all customers be successful. Our members look to GreenStone to be more than a stable lending institution! We are a cooperative, owned and controlled by those who use its services and staffed by some of the most caring, hardworking people anywhere.
These same GreenStone team members are also active participants in the rural communities where they work and live.
As we start another new year with storm clouds still on the horizon, one thing you can feel good about is the commitment your association has to agriculture and the rural communities it serves. By being a dependable, competitive, and responsible source of credit and financial services through all economic cycles, our talented team of people who truly care about each one of our members deliver personal, customer focused service. With the unmeasurable number of variables in
this industry that are out of your control, we remain committed to being a reliable, dependable financial partner to agriculture. As always, thank you for placing your trust in us and allowing us to serve you. Feel free to contact me directly if I can ever be of assistance. Best wishes for a safe and successful 2019!
Dave Armstrong
517-318-4105 dave.armstrong@greenstonefcs.com
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GROW
MANY TIMES WHEN YOUNGER FARMERS ASSUME THE MANAGEMENT OF THE FAMILY FARM, THEY TAKE ON AN EXTRA LAYER OF RESPONSIBILITY IN ENSURING FAMILY TRADITIONS AND LEGACIES ARE MAINTAINED. WHEN CALEB AND KATE MATTHES TOOK ON THE OWNERSHIP OF THE MATTHES CHRISTMAS TREE FARM (NO RELATION), THEY BECAME THE GATEKEEPER OF CHRISTMAS TRADITIONS AND MEMORIES FOR HUNDREDS OF FAMILIES.
“We know we are a part of so many family traditions, for many generations,” Kate says. “It can put extra pressure on us to do it right. We have people who have been coming out here for 30 years as part of their family Christmas. It is a lot of pressure to provide a great experience for them and a lot of reward for us to see the families here.” Caleb and Kate purchased the tree farm from Wilbert Matthes in 2015. Wilbert and his late wife, Peg, started the farm with a few trees in 1953, and from there grew a successful Christmas tree farm in Monroe, Michigan. When the younger Mattheses purchased the 100-acre farm, they acquired not only the trees and land, but the experiences that have built family memories for generations. The Christmas tree farm started when Wilbert delivered a few trees to co-workers in the early 1950s and is now a destination for families to select and cut their tree, visit with Santa and enjoy live music and refreshments. A retail area includes fresh wreathes, garland, and Christmas goods. A petting zoo and fire pits round out the experience. From the end of November until shortly before Christmas, they will sell nearly 4,000 trees off their u-cut lot. On the weekends, hundreds of families will visit to enjoy the experience, some traveling over two hours from Michigan and Ohio to come to the farm.
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The families aren’t just getting a tree... They are making memories as a family, often times carrying on a long family tradition. We like to create a happy place for them, away from the craziness that surrounds so much of the Christmas season.
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In the past three years, Caleb and Kate have added their own touches to the farm, including the addition of an event area that can be rented for weddings, parties and other celebrations. They have also expanded the retail area to accommodate more selection of Christmas goods and allow more room for people to browse and visit Santa. ➡R ight: Visitors to the tree farm can select and cut their own fresh tree. ➡ Opposite page: Caleb and Kate Matthes add their personal touch creating memories for families.
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“The families aren’t just getting a tree,” Kate says. “They are making memories as a family, often times carrying on a long-time family tradition. We like to create a happy place for them, away from the craziness that surrounds so much of the Christmas season.” The intense activity through November and December, comes on the heels of harvest for Caleb who also farms nearly 2,000 acres of corn, soybeans and wheat with his father. His experience in farming gives him an understanding of the importance of soil sampling and crop protection, but other than the basics in crop management, he was not experienced in raising trees. “We jumped in with both feet!” Caleb says. “We are learning from our mistakes, asking questions of others and figuring out ways to make trees grow. We like to talk with other growers and still seek advice from Wilbert, who still lives in the house on the farm.”
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We are learning from our mistakes, asking questions of others and figuring out ways to make trees grow. We like to talk with other growers and still seek advice from Wilbert, who still lives in the house on the farm.
Unlike the annual crops Caleb is accustomed to, Christmas trees can take 6 to 7 years to mature. Following the management practice of the previous owner, he attempts to clear and replant trees in blocks for easier management. New trees are planted at 12-16 inches tall in the spring or after Labor Day. Once the trees reach 3 to 4 feet, they are
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trimmed by hand each year to help shape the trees. The nature of the u-pick harvest can create challenges in managing the groves by blocks, but Caleb finds it easier than managing by individual trees. Prior to the cutting season, Caleb will clear out trees with imperfections, using the boughs for wreaths and garland. This year
he also cut the tops of the cull trees making small 2 to 3 foot trees they sold as small trees for kids or people in apartments. “The little trees were a hit!” Caleb says. “The kids and other people who didn’t want a full-size tree loved them.” To accommodate those wanting taller trees, Caleb brings trees in from the west side of the state that are closer to 10 feet tall. One of the most beneficial aspects to come with the farm was a team of dedicated employees who have made the transition easier for Caleb and Kate. Throughout the year, they will have 4 or 5 employees working with the trees and on their other crop farm. But during the season, it takes 30 to 40 people to keep everything running. Each year many of the same people come back to take their spot on the farm, including Kenny the tractor driver for over 30 years. “We never have trouble finding people to help,” Kate says. “People like to be out here, to be part of the activity. Plus, it’s only a few weekends out of the year so it’s not a longterm commitment.” The Matthes were able to purchase the farm with help from GreenStone’s young, beginning and small farmer program. Working with loan officers at the Monroe branch, the Matthes were able to secure the financing they needed. “The Matthes are good people,” says Rich Dubke, financial services officer. “They are young – only 27 years old, energetic and willing to put in the hard work to be successful.” Admittedly, the Matthes still have a lot to learn as they wrap up their third year of owning a Christmas tree farm, but their enthusiasm and curiosity have set them on a good course. From the creation of the event area and expanded retail to their desire to learn more about growing trees, they are laying a solid foundation for success. ■ ➡ Top Right: Previous owner, Wilbert Matthes, shares stories and advice from his years cultivating the farm.
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We never have trouble finding people to help... People like to be out here, to be part of the activity. Plus, it’s only a few weekends out of the year so it’s not a long-term commitment.
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MARKET OUTLOOK
By Bob Utterback PRODUCERS HAVE DONE THEIR JOB – PRODUCING THE CROP. WE ARE COMING OFF A GOOD CROP IN MANY AREAS AND THE BINS ARE FULL. I BELIEVE AN UNHEALTHY PERCENTAGE OF THE 2018 CORN CROP IS STILL ON THE FARM UNPRICED. SOYBEAN MOVEMENT HAS BEEN BETTER, BUT A SIGNIFICANT AMOUNT OF INVENTORY NEEDS TO BE PRICED. WHEAT SUPPLY IS NORMAL.
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South American producers have increased their corn and soybean acres and the prospects for an average plus crop seem to be very high at the time I write this outlook. So the pressure is now on the demand side of the ledger to prove the bulls’ argument that demand will grow. Trade conflict with China has come to a boiling point, causing problems. While an eventual resolution will be seen, neither side will get all it wants. In the end we will see China come back to the table and buy our soybeans and corn, but it will be very slow at first. In fact, I believe we will only see significant price strength if and when a major producer like us, South America or China, has problems. In conclusion, I believe 2019 will be a very difficult year for everyone associated with agriculture. We all want a quick solution; unfortunately, unless there is a major supply reduction event somewhere in the world, the potential exists for a range bound market with a downward bias. Prepare for carrying charge markets, wide basis, and limited flat price rallies in corn and soybeans. CORN
Old Crop: Sell the carry immediately in the July 2019 contract; focus on getting 100 percent priced as close as possible to $4.00 July futures. Lock up basis in February and March. If anyone has a bullish bias for a spring/ summer event, buy after the March supply/ demand report, but before the March acreage report in a limited risk long strategy. 2019 Crop: With increased corn acres and big domestic stocks, it appears the possibility of December 2019 corn taking out the 2017 high is limited. I suggest producers be aggressive sellers of expected 2019 corn production between $4.04 to $4.12 using 40-50 cent inthe-money December puts to set a floor and reduce time value cost. I suggest capturing 40 60 percent of any upside price event due to an unknown weather event by rolling up puts. SOYBEANS
Old Crop: Plan to sell all inventory now or store all the way to late June to early July. The only way I see soybeans rallying is if there is a quick resolution to the China trade situation, coupled with a significant yield reduction weather event. With South American crops looking good, the only real potential for soybeans is storing them to next summer. In the past I suggested dumping all inventory. It can be reowned during March before the influence of weather becomes a factor.
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We all want a quick solution; but I’m here to say that, unless there is a major supply reduction event somewhere in the world, the potential exists for a range bound market with a downward bias.
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WHEAT
This complex saw reduced planted acres that helped to stabilize values, but limited overall price improvement can be expected with the extremely bearish outlook for corn and soybeans. I suggest making seasonal sales and planning to have all expected 2019 inventory priced during February and March [winter scare time period]. HOGS
While a lot of the attention is now on the grains and outside equities markets, the hog market has experienced a nice seasonal price improvement. I favor aggressive forward selling of expected 2019 inventory above $85 using deep-inthe-money June puts. My main concern is for the last half of 2019; if the corn and soybean markets experience price weakness, expect an increase in pork production. Subsequently, one must be ready to make aggressive forward sales during the first half of 2019. CATTLE
The new Canada-Mexico-USA trade agreement has helped to stabilize the beef complex prices. The issue moving forward is, if the general economy moves into a recession and consumer dollars tighten, we will see consumers move more to purchases of pork and chicken at the expense of beef. Thus I suggest being an aggressive seller of the deferred cattle contract as we move into the normally strong seasonal March to April time period, even with the deferred contracts discounted to the nearby contracts. Bottom Line: Long-term, I see more downside than upside potential for cattle prices in 2019. OTHER COMMODITIES
Controlling operating costs is very important. I believe only limited upside risk exists with regard to an increase in interest cost. The area of most control is most likely fuel cost; lock up fuel costs at the mid-$40 crude oil price. It looks as if land costs are hanging in there and could result in a modest increase in cash rents rather than a decline. Overall, I suggest budgeting next year’s total costs 2 percent higher than the 2018 figure. This suggests producing corn and no soybeans. This will be the big issue during the first half of 2019. What changes, if any, will producers implement in 2019? ■
ABOUT THE AUTHOR
Bob Utterback is the President of Utterback Marketing in New Richmond, IN. Call Bob for strategy updates at 877-898-4324. Email comments on Outlook to utterbac@tctc.com.
The opinions stated herein are not necessarily those of GreenStone Farm Credit Services.
This material has been prepared by a sales or trading employee or agent of Utterback Marketing Services, Inc. and is, or is in the nature of a solicitation. This material is not a research report prepared by Utterback Marketing Services, Inc. By accepting this communication, you agree that you are an experienced user of the futures markets, capable of making independent trading decisions, and agree that you are not, and will not, rely solely on this communication in making trading decisions. Distribution in some jurisdictions may be prohibited or restricted by law. Persons in possession of this communication indirectly should inform themselves
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Controlling operating costs is very important. I believe that only limited upside risk exists with regard to an increase in interest cost. The area of most control is most likely fuel cost; lock up fuel costs at the mid-$40 crude oil price.
about and observe any such prohibition or restrictions. To the extent that you have received this communication indirectly and solicitations are prohibited in your jurisdiction without registration, the market commentary in this communication should not be considered a solicitation. The risk of loss in trading futures and/or options is substantial and each investor and/or trader must consider whether this is a suitable investment. Past performance, whether actual or indicated by simulated historical tests of strategies, is not indicative of future results. Trading advice is based on information taken from trades and statistical services and other sources that Utterback Marketing Services, Inc. believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades
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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. Land Prices Remain Steady Each year GreenStone compiles market data along with customer data to determine annual benchmark land values to be used in completing accurate and current appraisals. The varying agricultural land uses, as well as recreational land and home sites, and commercial and industrial developments, require values to be determined on a localized level.
Daily DRP Prices Available Having access to daily market prices is important as dairy producers become more familiar with the dairy revenue protection program and are evaluating possible coverage amounts. To help producers track the markets, we have designed an easy and convenient way to monitor the prices used to establish Dairy RP coverage amounts. Hog Producers Looking to Squeak Out a Profit After Turbulent Year In January of 2018, the hog market was anticipating a good to stellar year. Then April came, tariffs were enacted, and prices plummeted. GreenStone Supports Young Farmers At GreenStone we believe in new beginnings and are proud to support our young, beginning and small farmers. ■
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The Power of Questions By Barb Dartt, DVM, MS
THERE WILL COME A TIME DURING YOUR FAMILY BUSINESS SUCCESSION JOURNEY WHEN PROGRESS REQUIRES YOU TO GIVE UP WHAT YOU LOVE TO DO AND WHAT YOU ARE VERY GOOD AT…TO MAKE ROOM FOR SUCCESSORS TO LEARN, GROW AND FLOURISH. THIS IS SOME OF THE HARDEST WORK OF SUCCESSION.
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Part of the trauma in this process has to do with watching your successor— bright, passionate, energetic and someone you have great confidence in —make decisions that you’ve made for 20 or 30 years. As you would expect, they make some missteps. They collect the wrong information. They take too much time. They move slowly on small decisions and too quickly on big, complex ones. They don’t treat people right. They screw up. As the senior team member (some prefer seasoned team member), it is often hard to know when to step in. How do you ensure they make some mistakes but none that are too big? How long do you let them bark up the wrong tree? Recently, I had the honor of watching Scott, one senior generation member (who would NOT appreciate that title), hit the ball out of the park while guiding a successor. Scott is the CEO and the oldest of a four sibling ownership team. He is fast paced, smart and loves to engage in stimulating conversation. Scott, while effective at his job, does like folks to know how smart he is. And Scott does not suffer fools lightly. He can easily dominate a conversation. Over the 26 years he and his brothers have worked together, his brothers have taught themselves to defer to him. And why not? Scott is almost always right. His guidance has brought the business a lot of success. However, Scott (and his brothers) have recognized that his natural style—which has been a strength of the business for a long time—will not position it for long term success. Scott’s youngest brother, Derek, is the successor in the business – he is 15 years younger than Scott. And today, Derek presented a feasibility study to the owner team about a potential significant investment that he (and Scott) had developed. Scott has traditionally done the majority of this kind of work and he’s been the one to present and lead discussion. Derek had worked very hard to be ready for the presentation. He’d done his homework, gotten Scott’s input and worked with an outside consultant on both the content of his report and his presentation style. I have watched Scott in similar situations before. When he already understands the content of a report, Scott has a hard
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As a business and opinion leader, the next time you are tempted to add your perspective or to leap into an important and potentially tense conversation, take a deep breath first. And then respond in the form of a question.
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time staying patient. He fidgets. He sometimes adds a point but then takes the conversation off topic. Scott’s become aware of these tendencies and their effect on other’s confidence. Today, Scott was a superstar—just like Derek was. He was relaxed. He listened well. And when he thought Derek missed something, he asked a question. And it was a great question. The tone was truly curious. He deferred to Derek’s knowledge and really asked his opinion on the topic – it wasn’t a rhetorical question that he already knew the answer to (well…it didn’t sound rhetorical). Questions can be transformative. And sometimes very hard for experts to ask effectively. Questions can make the asker vulnerable—someone out there might think you don’t know something when you ask a question. And for the CEO, who’s been charged to know everything for a very long time, vulnerability can be a very hard place to put yourself. Another situation that can be transformed with questions is when you’re called upon to be a great listener. Maybe someone in your family or business has approached you with a business concern. Maybe someone is objecting to your viewpoint and you’re feeling a little heated. Maybe you’re giving them feedback they aren’t excited about hearing (like their poor performance or disruptive behavior). In this case, it can be very powerful to paraphrase what they have said—not a question, technically. But certainly an
opening for another to respond. Use something like the following: “So what you’re saying is….,” Or, “If I understand, what you mean is….” Another benefit of this approach is that it slows YOU down. Gives you time to get control of your emotion and to ensure you truly understand another. As a business and opinion leader, the next time you are tempted to add your perspective or to leap into an important and potentially tense conversation, take a deep breath first. And then respond in the form of a question. A real question— not one designed to point out what you know or to score points. And get the tone right…tone probably contributes 90 percent of the effectiveness of a question. And when you get it right, watch the successor bloom with confidence and initiative. Or enjoy participating in a meaningful exchange where you really begin to understand someone, rather than escalating a tense situation. What an honor it was to watch Scott and Derek become a case study in how some of the hardest work of succession pays off. ■ ABOUT THE AUTHOR
Barb Dartt is a consultant with the Family Business Consulting Group, working with families and management teams to help them keep their business healthy and the people happy. 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 — Winter 2019
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Uncovering the Drivers of Profitability on your Farm By Steve Kluemper Vice President of Credit, GreenStone Farm Credit Services
AS WE CONTINUE ANOTHER HARVEST WITH LOW COMMODITY PRICES, MOST PRODUCERS ARE WONDERING WHERE TO LOOK NEXT TO MAXIMIZE THEIR PROFITABILITY. IN MOST CASES, THE LOWHANGING FRUIT OF EXPENSE CUTTING HAS BEEN DONE. FINDING THOSE AREAS WHERE ADDITIONAL GAINS CAN BE REALIZED REQUIRES MORE INSIGHT AND EVALUATION OF YOUR BUSINESS.
Using financial metrics to analyze the performance of your assets can help you determine where you can maximize profitability and minimize the amount of ineffective assets. The two commonly used metrics to determine the profitability of your assets are the Asset Turnover Ratio and the Operating Profit Margin Ratio. Understanding how these two metrics effect the profitability of your operation can help you uncover areas to minimize losses or increase gains. While computing these ratios on your entire operation can help you see the overall results of the metrics, to do a more thorough analysis, each segment of the business (crops, livestock, replacement animals, etc.) should be reviewed for its own impact on the entire operation. The Asset Turnover Ratio shows how efficiently you are using your assets to generate revenues and is calculated by dividing annual gross revenues by total assets to show revenues as a percent of assets. Producers should 15
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target an Asset Turnover Ratio of at least 20 - 40 percent. A high turnover ratio percentage indicates you are getting more revenue out of your assets. Conversely, a lower turnover ratio percentage indicates the assets need to be more productive or they need to be downsized so that the capital investment in the asset can be redeployed to other areas with better turnover. The Operating Profit Margin Ratio indicates what revenues make it to the bottom line and is calculated by dividing your net income after operating and depreciation expenses and owner withdrawals but before interest and income tax expenses by annual gross revenues. This is expressed to show your operating profit margin as a percentage of revenues. Producers should target an Operating Profit Margin Ratio of at least 10 – 20 percent. This ratio can help you see the effect that minimizing expenses has on the overall profitability of the operation.
Using these two metrics individually and in combination can help identify areas where the farm operates well and can be expanded and also areas that may be costing more than is realized in income. A Return on Assets is calculated by multiplying the Asset Turnover Ratio by the Operating Profit Margin Ratio. Producers should target a Return on Assets of at least 3 – 6 percent. A high Return on Assets can be achieved preferably by having a high Asset Turnover Ratio and a high Operating Profit Margin Ratio. However, having one ratio that is low but offset by the other that is high enough to generate an acceptable Return on Assets is another way to generate acceptable profitability. Producers can evaluate the effectiveness of the capital being deployed to keep assets on the farm by using these metrics to take some of the emotion out of the decision making if the operation determines activities that have been done for a long time may need to be reevaluated and redirected. Identifying highly productive assets can help you look for ways to maximize an area where you are doing well. With this information you can improve or capture more profit on productive assets by pinpointing an area the farm can use to break away from relying solely on commodity markets of livestock, milk and crops.
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Because these types of decisions can have a large impact on your operation, it is critical that careful financial analysis is done on each asset prior to making major decisions. Often times many on farm practices are done based on tradition or routine, rather than financial efficiency.
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producers need to look beyond just “tightening the belt” to find ways to maximize the assets and investments they have and gain financial stability. Because these types of decisions can have a large impact on your operation, it is critical that careful financial analysis is done on each asset prior to making major decisions. Often times many on farm practices are done based on tradition or routine, rather than financial efficiency. The answer to the best asset to invest in will be different for each operation based on their own unique set of circumstances. Uncovering the next layer of profitability based on financial metrics may require the use of a consultant who has the expertise to calculate and evaluate the ratios and help you make decisions based on the outcomes of the analysis. ■
Depending on the type of operation, areas that may have a low asset turnover ratio and low operating profit margin may involve machinery or equipment or buildings that sit idle or land or livestock that are not productive. For instance, if you need to improve your return on assets on machinery you may look at doing custom work or other services that utilize your assets and talents. If you operate a dairy farm, you may find that the best return comes from the milk cows and raising heifers has a low asset turnover. If so, you may consider moving your heifers off site to a heifer raiser and using the space for the milk cows. We are seeing more producers taking a closer look at what they do really well on the farm and finding ways to create a niche for their operation that solves a problem for another operation. From selling organic crops, raising heifers or providing custom hauling services,
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CONNECT
NEWS:
IT ALL STARTS WITH YOU: RETURNING $82 MILLION TO MEMBERS Being a member-owner of GreenStone Farm Credit Services means you receive products and services tailored to your agricultural and rural living needs, and you contribute to the core success of your cooperative. Unlike financial institutions owned by investors, GreenStone is owned by you - the people we serve which means our owners also benefit in the joint success.
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solutions and resources to our members to help them manage the challenges of the current agriculture economy. These efforts, coupled with internal efficiencies and portfolio diversity providing strong overall financial performance of GreenStone, led us to end 2018 in a strong position.
On March 14, our member-owners will receive a total of $82 million in patronage, over 60 percent more than the $50 million returned in 2018. These payments represent approximately 45 percent of the total income generated by the cooperative. Life to date, since the program’s inception in 2005, a total of $400 million will have been returned to our member owners!
As a financial cooperative, it is important for GreenStone to generate strong earnings and maintain adequate capital levels to help ensure it can be a dependable source of credit for years to come. Having GreenStone in a strong financial position allows the board of directors to approve healthy patronage payments to our members. As a result, we are returning another record-level of patronage back to our members on March 14, 2019.
Throughout 2018, GreenStone held firm to its mission of supporting rural America and agriculture, providing creative
“We know these are difficult times for many of our customers and this is one more way we recognize their impact
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on the agricultural industry and our cooperative. We are continually focused on generating solid returns so we can give our members not only the products and services they need, but additional resources generated by working together and sharing our success,” says Dave Armstrong, GreenStone President and CEO. “The board of directors, and all of us at GreenStone, are pleased to be positioned to provide this $82 million of support back to our members.” We will celebrate our members and provide our personal thank you to customers as we distribute checks on Patronage Day at each of the local GreenStone branches on March 14. Notification letters will be sent to all eligible members in mid-February. ■
Q3 2018 Stockholder Report GreenStone recently released its third quarter stockholder report, detailing earnings of $40.4 million for the quarter and $126.3 million for the nine months ended Sept. 30, 2018. Comparatively, net income was $42.6 million and $114.0 million for the same periods last year. Owned and managed loan volume totaled $8.9 billion at Sept. 30, 2018. “Our continued strength in the marketplace is a reflection of the diversity of our portfolio,” said Travis Jones, GreenStone’s chief financial officer. “When compared to September 30, 2017, owned and managed total loan volume was up 7.8 percent. This increase was driven by growth in all market segments and led by our Capital Markets and Country Living segments that have increased 24.8 percent and 5.6 percent, respectively, during the previous twelve months.” Other numbers to note from this quarter’s results include: • Total member’s equity as of Sept. 30 is $1.7 billion, up $88.8 million from Dec. 31, 2017 • Acceptable loan credit quality remained solid at 93.3 percent, after beginning the year at 94.1 percent. • The association continued to effectively manage expenses as its efficiency ratio improved to 34.6 percent.
in the mail for more details and to RSVP for the event. Contact any of our Wisconsin branches for more information. ■ GreenStone Connect Receptions We are committed to being a dependable and consistent lender to families and farm businesses. We invite you to connect with your local GreenStone team as we thank you for your dedication and partnership with GreenStone. •V isit the GreenStone booth at the Great Lakes Crop Summit, Jan. 30-31, 2019 at the Soaring Eagle Casino Resort in Mount Pleasant, Michigan. Join us at the GreenStone Connect Reception on Wednesday, January 31 from 5:00 – 6:00 p.m.
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• Stop by the GreenStone booth at the Great Lakes Regional Dairy Conference, Feb. 7 – 9, 2018 at the Bavarian Inn Lodge & Conference Center in Frankenmuth, Michigan. ■ Farm Women’s Symposium The 28th Annual Farm Women’s Symposium will take place March 6-8, 2019 at the Hilton Garden Inn in Benton Harbor, MI. The event provides women opportunities for leadership and development, enhancing communication and management skills, building effective family and family teams, and developing a network of supportive friendships. Visit the website for more information, www. farmwomenssymposium.com,
Thank you for your support of the Rural Health Initiative Fund within the Community Foundation. By making a donation to one of more than 1,500 charitable funds that the Foundation manages for people, businesses and organizations, you are investing in your community.
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Thank you for GreenStone’s contribution to the MAEAP Communications Workgroup. We greatly appreciate you support and look forward to celebrating the 5,000 verifications with you and the partnership soon!
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— Emily Reinart, Agriculture Ecology Specialist, Michigan Farm Bureau
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Thank you for your sponsorship of Crosshatch’s 2018 Field School programs. Your support helped farmers connect with one another for valuable peer-to-peer learning opportunities. Thank you again for your continued support and for believing in us!
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— Rachel Zegerius, Development Director, Crosshatch Center for Art and Ecology
Ladies’ Day Out
This year’s agenda includes the hysterical theatre group, “Let Me Be Frank” Productions. Their all-original shows are a cross between Saturday Night Live and a pop concert.
2019 Scholarship Program GreenStone is now accepting applications for its 2019 scholarship program! GreenStone plans to once again award up to $40,000 to incoming college freshmen pursuing a degree in an agriculture-related field. The scholarship amounts are $2,000 each to selected students attending a four-year college program and $1,000 each to selected students attending a two-year college program. For complete program guidelines and application, visit www. greenstonefcs.com. Act now, the application deadline is March 1! ■
—Curt Detjen, President/CEO, Community Foundation for the Fox Valley Region
The complete third quarter stockholder report can be viewed online by visiting: www.greenstonefcs.com. ■ The 2019 event for GreenStone customers will take place on Feb. 14, 2019 at the Radisson Hotel and Conference Center in Green Bay, Wisconsin.
and inquire at your local Michigan GreenStone branch for more details on registration financial support from GreenStone. ■
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The Schoolcraft Branch, and financial service officer, Jessica MacDonald, earned high marks from a recent customer, saying “excellent listener, very accommodating, professional, and treated us like a valued customer. —Schoolcraft Branch Customer
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...Candid Comments
GreenStone’s Wisconsin members can refer to the invitation received
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GROW FORWARD GRANT PROGRAM Again in 2019, GreenStone will award up to $40,000 in grants to young, beginning, and small farmers to help offset the costs. The grant amounts will be up to $1,000 to current customers and up to $500 to non-GreenStone customers. Eligibility: • Young, beginning or small farmer –18-35 years of age, or –Farming for less than 10 years, or – Sustain annual gross sales from agricultural production of less than $250,000 •M ust be eligible to be a member of GreenStone: reside in Michigan or northeast Wisconsin Intended grant use must fall within one of the following categories: •A gricultural programs/events: educational course/program (on-site or online), conference fees, etc. GreenStone recognizes the importance of young, beginning, and small farmers and the role urban food production and diverse producers play in sustaining rural communities and agriculture! We believe in the value of education to prepare these producers to successfully compete in a highly competitive global marketplace. This program will support their education initiatives provided through a variety of partner organization opportunities and strengthen their business.
•G reenStone resources: first time use of accounting and tax services, technology support, etc. • Non-GreenStone services: business and farm consultants, etc. Interested in applying? Grants up to $1,000 are available with more specific details on the application at www.greenstonefcs.com/ybsf. ■
Mark Your Calendar... JANUARY
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GreenStone Offices Closed In honor of Martin Luther King, Jr. Day DBA Dairy Strong Conference (23-24) Monona Terrace, Madison, WI Great Lakes Crop Summit (30-31) Soaring Eagle Casino & Resort, Mount Pleasant, MI
FEBRUARY
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Great Lakes Builders Show (6-7) Suburban Collection Showcase, Novi, MI
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Great Lakes Regional Dairy Conference (7-9) Bavarian Inn Conference Center, Frankenmuth, MI Winter Potato Conference (13-15) Crowne Plaza, Grand Rapids, MI Ladies’ Day Out Radisson Hotel and Conference Center, Green Bay, WI Young Farmer Leaders & Voice of Ag Conferences (15-17) Amway Grand Plaza Hotel, Grand Rapids, MI GreenStone Offices Closed In honor of Presidents’ Day
Michigan’s Ag Day at the Capitol The Michigan State Capitol, Lansing, MI
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Outdoorama (28-3) Suburban Collection Showplace, Novi, MI
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Great Lakes Hop & Barley Conference (28-2) Park Place Hotel, Traverse City, MI
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MARCH
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Farm Women’s Symposium (6-8) Doubletree by Hilton, Grand Rapids, MI
Ultimate Sports
14 Show (14-17)
DeVos Place, Grand Rapids, MI
Logging 26 GreenStone Forum Gaylord, MI
Michigan State FFA Convention (6-8) Michigan State University, East Lansing, MI
26 (WPS) Farm Show (26-28)
Michigan Deer and Turkey Expo (8-10) The Lansing Center, Lansing, MI
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Wisconsin Public Service EAA Grounds, Oshkosh, WI
GreenStone Logging Escanaba, MI
2018 Deer Challenge Winners This fall, more than 80 hunters in northeast Wisconsin participated in GreenStone’s Deer Challenge hosted in our northeast Wisconsin region. In addition to the top awards, all entrants were also included in a drawing to win a game camera and Cabela’s gift card. Thanks to all the hunters
Pause for Applause... 1. Adrian Schunk Elected National FFA Eastern Region Vice President Adrian Schunk, past Michigan FFA state president was elected serve as National FFA Officer at the 2018 national convention. Adrian is graduate of Mason High School and currently a communications major at Michigan State University. As a national officer, Adrian will commit a year of service to the National FFA organization traveling across the country to interact with business and industry leaders, thousands of FFA members and teachers and others affiliated with the association.
2. Great Lakes EXPO Scholarship Winner GreenStone team member Sara Trattles was recently awarded a scholarship by the Michigan Vegetable Council and the Michigan State Horticultural Society to continue her graduate level education in agribusiness management. Sara is a financial services officer in the Schoolcraft branch. who participated in our annual Deer Challenge! Adult Buck Winners 1st: Tony Bley, $400 2nd: Brian Beyer, $200 3 : Andy Heinz, $100 rd
Junior Buck Winners (17 years old or younger) 1st: Caleb Christopherson, $200 2nd: Carson Shears, $100
3. Great Lakes EXPO Award Winners Awards and scholarships were handed out Dec. 5 at the 18th Annual Great Lakes Fruit, Vegetable and Farm Market EXPO Banquet held at the Amway Grand Hotel’s Ambassador Ballroom in Grand Rapids, Michigan. Distinguished Service Award – Josh Wunsch Master Farmer Award – Golden Stock Farms Master Farmer Associate Award – Mark Mayer
Game Camera Drawing Winners Paul Wallace, Sr Donald J Olson Cabela’s Gift Card Drawing Winners Tanya Zimmerman Adam Desterheft Austin Stodola Nathan Baldwin ■ Annual Report This is an official notice that the 2018 GreenStone Farm Credit Services annual report will be available for viewing online at www.greenstonefcs.com by Thursday, March 15, 2019. In addition, the annual report will be mailed to all stockholders within 90 days of year-end. By regulation, GreenStone is required to send a copy to each stockholder, regardless if it is a duplicate mailing address. ■
SERVICE ANNIVERSARIES Help GreenStone congratulate and thank these staff who are celebrating an employment milestone. From five to 40, the years represent the dedication and service all employees provide our members. January: Tammy Olney Kimberly Clum Jill Martinez Denise Benjamin Dennis Mcgowan Susan Ring Pamela Pionk Michelle Gibson Rhonda King Angela Rogers Samuel Schafer
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February: Teresa Winacoff Kelly Kranz Cory Cooper Laura Edmonds
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March: David Carpenter Cindy Maciag Michelle Bartkovich Joseph Day Melinda Spendow
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BEHIND THE SCENES– GreenStone has several financial service officers (FSOs) working with customers across our territory. Each FSO is designated to work with either traditional (farm) customers or a country living customers. In this issue, hear from two country living FSOs who work with our rural members. Cynthia Cole, Ionia Branch Country Living Sr. Financial Services Officer 37 years of service Describe how your role carries out the GreenStone mission of supporting rural communities and agriculture: I grew up on a dairy farm and currently cash crop farm with my husband. I understand the hard work of farming and the enjoyment of the lifestyle. I understand the desire to live in the country and enjoy the land. Providing the proper financing that meets the customer’s needs is important to me and it’s what makes my role at GreenStone enjoyable. I value the lasting relationships I have built with all of my customers, as well as other GreenStone customers. At all times, I keep the customer’s needs a priority. I have enjoyed my involvement in 4-H that is hugely supported by GreenStone. What do you enjoy most about your role at GreenStone? I have enjoyed getting to know customers and working with them to make their dreams a reality, whether it is purchasing, building, or remodeling their dream home, as well as making the land purchase that will be used for farming, recreational, or a future home. Sometimes it is just plain providing advice that will put them in a position to make their dreams come true if it is not presently possible.
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Building a relationship with the customer is important to me as well as I believe it is valued by them. Over the years, in all market segments we have seen struggles, maintaining a friendly and understanding approach is sometimes all that can be provided to show support. Sometimes it is just giving them some well-timed advice so these dreams will be fulfilled in the future. What changes have been incorporated in your role to meet evolving customer needs? Phone and meeting in person with handwritten documents was the process for many of my earlier years. Over the last several years, customers are very busy and working off farm, making in person contact with them limited. Electronic communication and exchange of documents is very efficient while still building a relationship. What do you enjoy doing in your free time? I have two 4-H clubs and sit on two 4-H committees. My motto is “you never know what little set of eyes are watching you and if you make an impact on just one youth you have made a difference.” I also love to quilt, my motto for this is “when life goes to pieces make a quilt.” I have donated several to 4-H. I am thankful I have wonderful children and several grandchildren that are a great joy in my life.
Miranda Kelle, Lapeer Branch Country Living Financial Services Officer .5 years of service Describe how your role carries out the GreenStone mission of supporting rural communities and agriculture: So many of our smaller scale farmers also hold jobs outside of the farm and we can help them with their financing needs that may not be as inclusive as traditional farmers. Also, we provide lending opportunities to people wanting to be members of the rural community. What do you enjoy most about your role at GreenStone? With my job at GreenStone, I get to help make dreams come true for our customers. Whether it is buying that ideal piece of hunting ground to take their kids out hunting for the first time, or building the home they have been dreaming of since they were younger, I am so happy I get to play such a large role in making these life changing events happen. Also, the people I work with share similar passions and make work truly enjoyable. What changes have been incorporated in your role to meet evolving customer needs? My role has recently been evolving to keep up with our growing customer base. Our economy is improving financially and we want to make sure we are able to service as many customers as possible. We have made changes to our credit underwriting standards to open up more lending opportunities. What do you enjoy doing in your free time? My family and I raise show pigs and take them all across the country to show and sell. While the farm is in Illinois, I still get some pigs up to my farm here in Michigan. I also have recently gotten into breeding Miniature and Toy Australian Shepherds. I show my dogs in conformation and agility throughout the year with the American Stock Dog Registry. ■
Directors’ PerspectiveWinter 2019
Being a member of GreenStone can mean something different to each individual, including your Board Directors. Using the word signs introduced during Patronage Day, these three directors continue to share their personal perspective on what is important to them and why they believe GreenStone is the cooperative to help them accomplish it! Terri Hawbaker: Next Generation
Laura Braun: Growing
We farmers know how to grow things. It’s what we do and we do it well. The year 2018 marked our 25th anniversary as Farm Credit members. It’s amazing to see how we’ve grown over those 25 years. Starting out with a few feeder cattle and some hand-me-down equipment as well as a wing and a prayer, we brought our big family to a little farm in Ovid Township and started to make it grow. It’s been a terrific journey and one that Farm Credit has shared with us all along the way. We’ve also grown a strong relationship with our partners at GreenStone. It is hard to imagine what the next 25 years will bring, but I’m certain that we will continue to grow. We have exciting plans for our future and the relationships we’ve built with Farm Credit will continue to help us along the way.
To me, GreenStone means being able to give the next generation a chance – an opportunity to have a future within agriculture. GreenStone’s history with the Farm Credit System gives our community consistency and stability when it comes to agricultural lending. Their understanding of agriculture is as deeply rooted as many of the multi-generational farms that they serve. I believe this helps the association to serve each and every customer appropriately, not just for the short term, but for the long term and the future farmers that are up and coming. They realize they are not just investing into the current operation, but potentially a future operation that will use cutting edge technology and take agriculture into the future, a future more than we can fathom. GreenStone wants to be a part of supporting the greatness that comes with the next generation. As a dairy farmer and mother of five children, I appreciate all the avenues in which GreenStone invests in our youth. From simple things like providing table service at dinners, to purchases at the local county fairs, college scholarships and internship opportunities. GreenStone is all in when it comes to helping our youth grow, learn, and achieve their goals. Bruce Lewis: Growing
From a young farmer getting a start in agriculture, to buying their first parcel of land or financing inputs for their first harvest, GreenStone is there to help them grow. For someone mid-career expanding their operation or moving into new enterprises, GreenStone is there to help them grow. For someone nearing the end of their career, utilizing tax management or changing coverages on crop insurance, GreenStone is there to help them grow. I am sure every member of our cooperative would have many examples of ways that GreenStone has helped them grow…these are just a few I see as key to our partnership with GreenStone. ■
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legislative outcomes are not perfect. The communication with those who serve us in their roles continually needs to be enhanced, educating them on what works for our members and what might not.
Legislative Matters:
RUNNING INTO 2019 WITH–CERTAINTY? AS YOU PLAN YOUR SPRING PLANTING, YOU ASSESS THE MANY THINGS NECESSARY TO PREPARE FOR THE NEW SEASON. LIKELY, THIS INCLUDES A REVIEW OF PRODUCTION RECORDS, DETERMINING FERTILIZER NEEDS, EVALUATING FIELD SUSTAINABILITY AND CROP ROTATION, CHECKING FUTURE PRICES ON COMMODITIES YOU GROW, CONSIDERING OTHER AGRICULTURE CROP PRODUCTION, AND EVALUATING LABOR REQUIREMENTS. WHILE PLANNING, YOU ALSO HOLD CLOSE YOUR FAMILY, FRIENDS, COMMUNITY AND COUNTRY. CERTAINLY, YOU COULD COUNT YOUR BLESSINGS. Things might not be exactly as you’d planned and adjustments will be necessary. Looking back at the last year, you might even remember a few of the obstacles you overcame, like an equipment breakdown in the middle of planting season or the volatile market. Whatever the obstacle, you faced it head on, and created the best outcome from difficult circumstances.
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Today we find ourselves in the New Year with a new Farm Bill, and new or changing markets. The 2018 Farm Bill should provide certainty for Michigan and Wisconsin farmers while fueling opportunities in rural communities. There are historic investments in land, water, and wildlife conservation. No matter what your priority, there is something more to consider and evaluate. Like your own business, Washington, D.C.
These are not easy times in agriculture, and the landscape of rural America continues to evolve. Staying engaged with legislative leaders on every issue remains important because challenging and changing times could result in disruption. While having a Farm Bill in place for the next 5 years, there will be needs for adjustment. There will always be uncertainty to manage. Putting the Farm Bill programs in place may create some opportunities, and may affect the market. Getting the Farm Bill in place before expiration created certainty, it is time to evaluate and operationalize those programs that make sense for you. This is certain; how it may help or hinder your 2019 planning and operation may not yet be certain. Time to plow through the programs is now. As a stakeholder in the future, assessing then overcoming obstacles makes us stronger together, and communicating this to legislators can make a difference. A Farm Bill passed with the help of many communicating its importance. Now it is time to discover and apply the opportunity, knowing that it may not be perfect. Count the blessings and appreciate the leaders that got it done. ■
PAC Progress:
GREENSTONE’S VOICE
for rural communities and agriculture continues to grow and be recognized as valuable. Your MI GreenStone PAC and WI Farm Credit PAC finished 2018 strong with meetings and checks being delivered to both Senate and House of Representative legislators and candidates. In meetings, connections where made and the cooperative structure of borrower-owned lending association was communicated. At the federal level, the legislative activities centered on the Farm Bill. The Farm Credit System, through individual associations and the Farm Credit Council, has been able to provide prospective as called upon. In addition, Farm Credit employees, directors, members and friends sent more than 15,000 messages to Congress urging support for the Farm Bill in December. None of this would be possible without your engagement and commitment to raise legislative awareness of rural communities, agriculture, GreenStone, and the Farm Credit System. In Michigan and Wisconsin, and at the Federal level, planning took place at the end of 2018 to help ensure effective outreach in 2019. Conversations will continue to take place in an effort to unite and expand our individual and collective legislative outreach efforts. The goal is to increase the awareness of the overall value of rural communities and the agriculture industry to our economies, and Farm Credit’s vital role. GreenStone will continue to build relationships for future support and strengthen the recognition of our members. Your continued support is commended and we look forward to involving members in delivering the message: do not forget about the importance of rural communities and the diversity of agriculture. The MI GreenStone PAC and WI Farm Credit PAC Drives are going on now! Be sure to send your voluntary patronage pledge before Jan. 31 to direct dollars from your patronage check to the PAC; or you can make a direct contribution to the PAC at any time. Join hundreds of your fellow members in strengthening the recognition of agriculture as a key component to a thriving economy. If you have questions, contact your local branch. ■
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AS A GREENSTONE CUSTOMER YOU HAVE THE RIGHT TO RECEIVE... PERSONALIZED SERVICE. IMMEDIATE RESPONSE TO ALL REQUESTS. HONEST, FAIR AND IMPARTIAL TREATMENT. CONFIDENTIAL TREATMENT OF ALL INFORMATION. ACCURATE INFORMATION AND ADVICE. The GreenStone Story:
Customers’ Rights GREENSTONE’S CUSTOMER BILL OF RIGHTS IS OUR COMMITMENT TO ALL CUSTOMERS TO DELIVER DEPENDABLE FINANCIAL PRODUCTS AND SERVICES, HELPING OUR MEMBERS DEVELOP A SOUND FINANCIAL PLAN FOR TODAY AND INTO THE FUTURE. THIS COMMITMENT HOLDS TRUE WHEN CUSTOMERS EXPERIENCE PROSPEROUS TIMES AS WELL AS TIMES WHEN CUSTOMERS ARE FACING FINANCIAL CHALLENGES. GREENSTONE’S CUSTOMER BILL OF RIGHTS = OUR PROMISE TO ALL CUSTOMERS:
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Personalized Service
We will always provide personal, individual service to our customers. We understand no two farms, businesses or households are alike, and each deserves personal attention. While we have credit and underwriting standards we are obligated to follow, we give extra effort to get to know our customers and understand their situations. We will work to develop a mutually beneficial relationship with all members, one based on respect, trust and open communication. Through a trusted partnership we are able to work with customers to develop strategic plans to help navigate tough times. Immediate Response to all Requests
With 36 local branches serving members, we are local and nimble, providing quick and timely responses to customer requests. Our staff embrace our Core Four Values, including putting the customer first by being responsive and building relationship with customers beyond the transaction. In recent months, we have streamlined processes to improve response rates on loan applications, and continue to put focus on this as a business objective in the coming year. We will review and respond to all requests. Honest, Fair and Impartial Treatment
We treat all customers fairly and honestly while appreciating their individuality and adhering to our thorough and regulated processes. Our customers, and the success of their operations, are our primary concern. We make every effort to maintain open, two-way communication with members, to help them evaluate alternative considerations proactively and consistently. When alternative arrangements are necessary, ongoing communication is
routinely done with in person meetings or by phone. To help ensure transparency and clarity, information by mail is also a consistent follow-up step in this communication process. It is our commitment to work with customers to provide the most viable and sustainable solutions for their individual circumstances. Confidential Treatment of all Information
Our commitment to all customers is to treat member information and affiliation with GreenStone confidentially. We will never release the names of our customers or comment on the relationship we have with individuals without prior consent. On occasion, we will ask customers to comment on their relationship with GreenStone as we tell our customer stories in a variety of communication channels. We will always ask the customer’s permission and gain consent before acknowledging them as a customer, while maintaining confidentiality of the business relationship specifics. Accurate Information and Advice
We take pride in being experts in farm and country living financing. Many of our staff members have direct ties to farming or rural living and bring their experience and education to the customers they serve. Additionally, we believe it is essential we stay informed of market trends and other financial indicators to best serve our customers. We continue to be involved in a variety of industry associations to stay current and to also share our expertise with others. The Customer’s Responsibility:
The trusted relationship we strive for requires a mutual commitment to open communication and action by the customer. A stressed industry economy or personal
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We treat all customers fairly and honestly while appreciating their individuality and adhering to our thorough and regulated processes. Our customers, and the success of their operations, are our primary concern.
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stressors creates an even greater importance on the need for transparency and proactive and consistent communication between customers and our staff. This past year is an example of the action we take to work with our members, such as analyzing business plans and balance sheets, rebalancing debt and restructuring financing to help members achieve success. We are in a better position to assist customers when we are brought into the conversation routinely, before a situation appears difficult. Together, we can and will seek out the best solutions for our customers based on individual service, an unbiased perspective and sound financial metrics. We ask you to reach out to your local GreenStone representative at anytime to discuss your current situation and to discover the best solutions for you. ■
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A LifeChanging Bond 27
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LIVE
➡ Left: Ann Klemp, GreenStone financial services officer, helped Dennis and Josie finance their home. ➡ Below: Caring for the alpacas gives Josie a sense of connection to Dennis.
Alpacas, which are native to South America, created curiosity around the northeast Wisconsin area where the Kruzickis live, so they began opening up the farm to visitors and hosting a “shearing day” in the spring. The annual shearing day brings out hundreds of people to learn about the alpacas, watch the shearing and interact with the animals. Josie also opened up the Kritter Kloset on the farm to sell products such as socks, hats and gloves made from alpaca fiber. Sales of the products along with donations help keep the farm running. GreenStone financial services officer, Ann Klemp, has volunteered with Josie on the farm and during shearing day since the beginning. Ann also helped Josie and Dennis obtain the right financing for their home.
WHETHER IT IS A BELOVED YELLOW LAB, A PRIZE-WINNING JERSEY HEIFER, A FLOPPY-EAR RABBIT OR AN ALPACA – WHEN HUMANS CONNECT WITH ANIMALS, A SPECIAL BOND IS CREATED. WHEN THAT BOND BECOMES AN ANCHOR IN DIFFICULT TIMES, IT CAN BE LIFE CHANGING. FOR JOSIE AND DENNIS KRUZICKI, BRINGING ALPACAS INTO THEIR LIFE NOT ONLY CHANGED THEIR LIVES, BUT THE LIVES OF MANY AROUND THEM. Dennis first encountered alpacas when driving home from a chemotherapy appointment, he stopped to watch a couple alpacas in a field – after spending a couple hours watching the alpacas, he was intrigued with the calming effect they had on him. He returned home determined to bring alpacas to their homestead in Bear Creek, Wisconsin.
“We were trying to refinance our manufactured home along with 60 acres and were having trouble with other lenders,” Josie says. “Ann … got us the type of loan we needed.“ Sadly, Dennis lost his 20-plus year battle with five forms of cancer the fall of 2017, five years after bringing home his first alpacas. Josie continues the work she and Dennis started as a way to bring some happiness to others. “These are our “babies.” We know them all by name and by personality,” Josie says. “Dennis told me he built all this so I would have something after he passed. The animals and the farm are my connection with Dennis.” ■
Seeing Dennis’ determination and passion to own alpacas, Josie joined with Dennis to find a couple alpacas to bring in as pets. Working with a neighbor, they found some alpacas needing to be rehomed, but the purchase price exceeded what they were prepared to spend. Dennis, who at the time was battling his second and third bout with cancer, was no longer able to work. While the Kruzickis believed the alpacas would be therapeutic for Dennis, they were worried about the costs involved. That’s when their “guardian angel” stepped in. When Dennis’ sister heard the news of his desire for the alpacas, she contacted the neighbor to purchase not one, but all four alpacas along with two hybrid crosses for her brother. His sister had been tested for his bone marrow donor, however was not compatible, yet wanted to support her brother any way she could. Overwhelmed with gratitude, Dennis and Josie vowed to share the alpacas with others who may need some “animal love.” From the initial alpacas, the herd grew quickly by additional donations and their own breeding. Soon they opened “Kruzickis Kemo Kritters” and were hauling the animals to nursing homes and school functions allowing people to interact with the animals. “For Dennis, caring for them and interacting with them added quality to his life at a time when many things were limiting him,” Josie says. “Chemotherapy treats the physical part of cancer, but there isn’t anything to help with the emotional side. The alpacas were that therapy for Dennis.”
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6 IMPORTANT TIPS FOR WINTER CAR CARE FOR CAR OWNERS, SNOW AND ICE PRESENT THE WORST POSSIBLE CONDITIONS FOR OPERATING A VEHICLE. THAT MEANS, IN ADDITION TO YOUR ROUTINE MAINTENANCE, YOU’RE GOING TO NEED TO PREPARE AHEAD OF TIME FOR EXTREME WEATHER. BATTERY MAINTENANCE Car batteries are often hit hardest by the cold weather, which severely impacts their cranking power. This is especially true in batteries over four years old. Before the winter weather sets in, make sure to pack a set of good jumper cables in your vehicle. Alternately, emergency starts are possible with all-in-one power packs – a great portable investment to have on hand. VEHICLE WARMUP During cold starts, it is not necessary to let the engine idle for an extended time. When starting, allow idling for a few seconds before putting your vehicle in gear to begin the proper oil flow and lubrication. Extended idles in modern vehicles only waste fuel, and won’t actually warm up the drive train components. Simply drive normally for a few miles after starting, and consider switching to a synthetic oil, which is formulated to flow more easily in cold weather. TIRE PRESSURE Icy roads can be made even worse without the proper tires, so check tires early. First, check your tread, and be sure to rotate or replace tires that are worn down or weathered. Also, make sure your tires are inflated properly, not over-inflated or under-inflated. This is an easy fix that many neglect to handle on their own. Tires inflated at a low-pressure will lead to quicker wear and decrease fuel efficiency in
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any weather condition. However, over-inflation may also reduce the proper traction in icy conditions. FILTERS, COOLANT AND HOSES As part of your routine maintenance, be sure to check (or have a mechanic check) all your filters, gas, oil, air and any soft or leaking hoses for potential replacement. Additionally, make sure your heater and window defrosters are in good working order. Your vehicle’s coolant and thermostat should also be checked – experts call for coolant change every two years, though extended-life coolants can last about five. IT’S NICE TO DE-ICE Before winter hits, go ahead and get some ice scrapers and de-icing gear. This is also the time to make sure your windshield wipers, front and rear defrosters are in good working order. A de-icer spray for frozen locks can also be a life saver, as well as traction aids and a small snow shovel in the event of a stuck vehicle. Many hardware and home stores sell bags of sand to give your vehicle extra trunk weight and traction, but can also be used on snow and ice for increased traction. And, as your mom says, don’t forget a warm coat, hat, gloves, boots and a blanket in case you get stuck in the cold. ■ Source: theweathernetwork.com
11 WAYS TO STAY ACTIVE IN WINTER YES, IT CAN BE TOUGH TO GET MOTIVATED WHEN THE WIND IS HOWLING OR THE SNOW IS BLOWING, BUT DON’T GIVE UP ALL THOUGHTS OF STAYING ACTIVE – INDOORS OR OUT. A LITTLE PLANNING WILL HELP YOU GET THROUGH THE WINTER MONTHS AHEAD. HERE ARE SOME IDEAS: Find a fun activity. As the seasons change, explore new outdoor activities such as cross-country skiing and snow-shoeing. Insulate your body. The best approach to dressing for outdoor activity is with layers. Plus you can remove the top layer if you get too hot. The layer closest to your skin should allow moisture to be wicked away; avoid cotton because once it gets wet, it tends to stay wet. The top layer should be both wind- and water-resistant.
Use daylight hours. If possible, it is best to be active outdoors while it is still light out. But shorter days may make that difficult. If you choose to be outdoors in the dark, try to wear reflective materials on your clothing to stay safe. Walk at an indoor location, like a mall. If you need extra motivation to get yourself going, join a walking group. Or start your own with family and friends.
Keep your clothes on. While you may be tempted to immediately remove layers when you go back inside, give your body time to adjust, wait 10 to 15 minutes before changing into other clothes. If you lose heat from your body too quickly, you may experience post-exercise hypothermia, which is a result of the body reducing its production of heat while rapidly losing its existing heat stores.
Sign up for activities at your local community center. Choose from a wide variety of classes – from aerobics and badminton to basketball and yoga. If you’re undergoing economic hardships, ask for a fee reduction.
Drink up. It is just as important to stay hydrated when active in winter as it is in summer, even though you might not feel as thirsty. Drink water before, during and after an outdoor workout.
Climb stairs. Either at home or in your workplace, spend as little as five minutes at a time climbing up and down the stairs for a very intense and efficient workout.
Create a home gym. You can easily set up a great workout area in your living room or basement and buy some inexpensive equipment such as stretch bands and a stability ball.
Get wet. Find a local indoor pool. Try swimming, water aerobics, or even just walking or running laps in the water. Visit a library. Sign out free exercise DVDs, including dance, step, aerobics and Pilates programs. When returning a DVD, choose another kind of exercise to keep you motivated. Before starting any activity program, be sure to talk to your doctor or other healthcare professional. ■
Source: Heart and Stroke.com
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Find More Sheds! By: Jordan Browne Michigan Out of Doors TV Producer
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Winter 2019 — Partners
I think I’ve finally figured out what it is we as shed hunters love so much about finding an antler. It provides a different kind of excitement then we are accustomed to. The excitement stems from not only finding the antler, but also from the hope that a single shed antler can bring. It creates a relationship of sorts between the hunter and that particular buck. In the heavily hunted timber and crop fields of southern Michigan, sometimes a single antler can keep you in a stand all season long, hoping for just one encounter with that specific buck. So, how do you find more sheds? Find where the bucks in your area are wintering and find their bedroom. Scouting throughout the winter months is crucial to finding more shed antlers and it does not necessarily require a ton of extra effort. It is hard for most deer hunters to understand that when it
comes to shed hunting, it doesn’t matter where the deer are during deer season. It only matters where they are in January and February, the time period when most bucks will lose their headset. Locating this area is going to require some extra work, but nothing that a little post season scouting can’t take care of. First off, find out where the deer are feeding in the area you plan on shed hunting, keying in on their main food source. In southern Michigan you can usually locate this part of the equation from the truck, just by paying attention to where you see deer in the fields. In other areas of the state, finding the main food source may be a little more difficult. Concentrate on the areas with the most natural browse (leftover acorns, cedars, etc.) if you are not in farm country.
Once you have found the food, it is time to find the bedroom. For the most part, deer do not travel far this time of year, so the bedding area will be somewhat close to the food. Watch where deer enter the field, where they leave, etc. At this time, I will often enlist the help of Google Earth. An aerial view can frequently help you locate the bedding area. It can also help you better understand why deer are using a certain area and the travel routes they may be using to get there. Trail cameras, if you have them, can also help in the scouting process. This applies both to finding the main food source and to finding the bedding area. I use trail cameras virtually all year long and I always make sure I have several on the property I plan to shed hunt. Most of the time, I won’t even check these cameras until spring –it only takes spooking
a buck one time to have him run off and end up dropping his antlers elsewhere. As soon as the snow begins to melt, I will take my cameras down, checking them immediately for any bucks that may have made it through. These pictures help me determine how much time to spend in a given area. It is important to pay attention to the frequency of buck pictures as well as the date. One random buck picture in early January doesn’t mean much, but multiple pictures of the same buck in late February can mean everything. Once you’ve located the primary bedding area, concentrate a bulk of your efforts there. Every area is different, but in southern Michigan bucks spend a large majority of their time in or around the bedding area.
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➡ Right: Finding a single shed can provide enthusiasm for the next huinting season.
Not only do deer spend a large amount of their time in the bedding area, this is the only time they are somewhat concentrated in a small area. These areas can range in size but frequently they are not very big, sometimes only a few acres. To do a thorough hunt, I like to grid search each area, allowing no more than 10-15 feet between my last pass or a second shed hunter. It is important to remember most of the shed antlers will be from young bucks and will probably be quite small. I’m relatively young, with good eyesight and I routinely find antlers on my second time through an area. It’s amazing what a difference a few feet here or there or even slightly different lighting conditions can have on your ability to spot an antler. If I’m confident that there are sheds in an area, I may walk it two or three times to make sure I don’t leave one behind. I occasionally will find a shed in what I believe is an actual deer bed, but more often I find them in random spots throughout the bedding area, likely because deer spend large amounts of time on their feet within the bedding area. You will also notice that most productive bedding areas, from a shedhunting standpoint, are those with heavy
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amounts of browse; this is no coincidence. Spend the extra time in the areas with the most browse and you will often be rewarded. Throughout the winter months, you may notice deer in small secondary bedding areas between the main food source and the main bedding area. These areas are small, usually less than an acre, but are certainly worth checking for sheds. On several occasions, I have found antlers in small thickets or treetops between these two areas. If it looks like an area a buck would bed for the day, then there is a chance for an antler.
I will concede that locating a primary bedding area is easier said than done outside of southern Michigan. But, the principles are the same. If you really want to find more antlers, you have to put the time in scouting. Whether it is with trail cameras, on foot, or from a vehicle, scouting is essential to your shed hunting success. Put the time in scouting, find the bedding area, and you will find more sheds! ■ The opinions stated herein are not necessarily those of GreenStone Farm Credit Services.
COUNTRY LIVING – 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.
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GreenStone in the Community: Homegrown Heroes
GreenStone in the Community: Feed the People
Students Unwrap Gift of Career Exploration
The entire Farm Credit System is committed to helping farmer veterans get their start in agriculture and ease the transition to civilian life. GreenStone is proud to be a part of the veteran initiative to help these heroes succeed.
Spending a couple of hours each week providing warm meals to families and individuals in her community, Sandy Arnold has a chance to volunteer for others giving her a sense of appreciation for the blessings she has in her life.
Arguably one of the most undervalued gifts this holiday season is the gift of career exploration. Its return on investment pays dividends in future career success and a stronger, more resilient economy. ■
Winter 2019 — Partners
Traditional Beef Stew Ingredients: • Vegetable oil, for searing • 2 1/2 pounds beef chuck, cut into 2-inch cubes
• 6 sprigs fresh thyme
• Kosher salt and freshly ground black pepper
• 2 bay leaves
• 2 tablespoons unsalted butter • 2 medium onions, cut into sixths • 5 cloves garlic, crushed • 1 tablespoon tomato paste • 1/3 cup all-purpose flour, or to cover • 10 cups cold water, or chicken or beef broth • 6 sprigs parsley
• 1 1/4 pounds medium red potatoes, quartered • 4 medium carrots, cut into 2-inch pieces • 2 celery stalks, cut into 2-inch pieces • 7 canned whole, peeled tomatoes, lightly crushed • 2 to 3 teaspoons red wine vinegar, to taste
Instructions: Heat a large Dutch oven with a tight-fitting lid over medium-high heat. Pour in enough oil to fill the pan about 1/4-inch deep. Season the beef generously with salt and pepper, and add to the pan. Saute half the meat, uncovered, stirring only occasionally, until well-browned, about 8 minutes. Using a slotted spoon, transfer the beef to a plate. Repeat with the remaining beef. Discard the oil and wipe out the pan. Preheat the oven to 325 degrees F. Return the pot to the stove and melt the butter over medium high heat. Add the onion and cook, stirring, until lightly browned, about 5 minutes. Add the garlic and cook, stirring, until fragrant, about 1 minute. Add the tomato paste and cook, stirring, until lightly browned, about 1 minute more. Add the reserved beef and scatter the flour over the vegetable and beef mixture (enough to lightly coat) and cook stirring until lightly toasted. Add the water or broth, and bring to a simmer. Tie the parsley, thyme, and bay leaves together with a piece of kitchen
twine and add the bundle to the pot. Season with 2 teaspoons salt, or to taste. Cover and transfer to the oven. Cook the meat until just tender, about 1 1/2 hours. (This can also be done on the stove at a low simmer.) Remove pot from the oven. Skim the fat from the cooking liquid with a spoon or ladle. Add the potatoes, carrots, celery, and the tomatoes, and bring to a simmer on top of the stove. Cook, uncovered, stirring occasionally, until the liquid thickens and the vegetables are tender, about 1 hour. Remove and discard the herb bundle. Stir in the vinegar and season with salt and pepper, to taste. Divide among bowls and serve immediately. Cook’s Note: Beef chuck, from the shoulder, because of its marbling of intra-muscular fat, is the choice for any type of stew. If you can’t find chuck cubed for stew in your meat department, buy a thick chuck steak and cut it into 2-inch cubes. ■
Source: Food Network Kitchen, © 2003 Television Food Network, G.P. All rights reserved
Commodity Cuisine...
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LEARN
CROP INSURANCE NEWS: SUGAR BEET POLICY PROVISIONS– The Risk Management Agency (RMA) updated the Sugar Beet Crop Provisions for the 2019 crop year. The end of insurance period has been extended to December 5 and the stage guarantees have been removed. The production guarantee will now be expressed in pounds of raw sugar. This is calculated by multiplying the tons of beet production by 2,000 and converted to pounds of raw sugar by
the average percentage of raw sugar to determine the production to count. This conversion will begin with the 2018 production and historical years will be adjusted by the Approved Insurance Provider (AIP) on your Actual Production History (APH) Database. There is also an early harvest factor to recognize for the potential lower weight and sugar content of early harvested beets. ■
Crop Insurance Calendar... JANUARY
MARCH
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Fruit Acreage Reports / Yield Reports & Pre-Acceptance Worksheets Due Deadline for January LGM Sign Up
FEBRUARY
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Sales Close Date for Onions Deadline for February LGM Sign Up
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Summer 2018——Partners Partners Winter 2019
Final date to sign up or make changes for a Spring 2019 Crop Insurance policy. If you are interested in changing the coverage level, type or need to add a crop, please call your crop insurance specialist to review your options. Any and all changes need to be completed by the March 15th deadline! If a signed application is not returned, your policy will automatically renew at the same level you insured at during the previous year.
Deadline for March LGM Sign Up
APRIL
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Deadline for April LGM Sign Up
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Production reporting deadline for fall 2018 harvested crops. Before you get busy in the field this spring, be sure to have your production reports completed, signed and submitted before April 29th.
* Please note that some dates can vary by county, especially in Wisconsin. Please check with your crop insurance specialist for specific dates if you are unsure.
Watching Every Dollar ➡ Below: Paul Platte and his parents, Sue and Chuck, rely on the GreenStone accounting team to maintain accurate records.
In today’s tight agriculture economy, knowing how every dollar is spent, and its subsequent impact on the farm’s financial strength, is increasingly more important to the sustainability of the farm. For dairy farmers, like the Plattes, analyzing their business by small increments versus a “lump sum” gives them a better understanding of the true costs within their farm. Working with GreenStone’s tax and accounting team, Scott Martin and Stephanie Luark, the Plattes are taking a close look at all their enterprises to make informed business decisions. “Working with Scott, we are seeing the places in our business where we are doing well and places where we can do better,” says Chuck Platte. “By doing a better job of accounting
we can see the true costs of doing things like putting up silage or raising calves and then decide if we are better off to do those things ourselves or not.” Chuck and his wife, Sue along with their son, Paul, operate a 1,200 cow dairy farm in Westphalia, Michigan. The cows and youngstock are housed on two separate locations in Clinton County. Collectively, they have 20 employees working with them on the dairies. Recently, they reached out to the GreenStone tax and accounting team to help them with their accounting functions, including payroll, to be more efficient in their financial activities. Prior to utilizing the GreenStone team, Sue handled the books and payroll for the farm. While Sue was happy to help where she could with the farm business, as the farm grew and became more complicated she worried about the risks involved if she did something incorrect. “Because I don’t have the financial background, I would always worry, ‘what if I missed something – what if I made a mistake?’ I didn’t want to make a mistake that could be costly or have penalties. With the way all the tax laws change it was even more stressful,” Sue says. “By teaming up with the experienced GreenStone staff, Stephanie and Scott, we have comfort knowing the job is done right.” The Plattes, who have used GreenStone for financing for several years, first started working with the tax and accounting experts in 2015 to prepare the farm taxes. From there, they have continued to work with the team on a number of services, a partnership Paul believes is critical to their business.
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Winter 2019 — Partners
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At times like this, when things are so tight, we have to have an open and transparent relationship with our lender. GreenStone is a big part of our business and probably the most important partner we have.
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“At times like this, when things are so tight, we have to have an open and transparent relationship with our lender,” Paul says. “GreenStone is a big part of our business and probably the most important partner we have. Working with them on everything – the accounting, payroll, taxes and financing prevents any surprises and creates transparency I think we need to have. As we move forward and grow, we want them to have a pulse on our business to help us make informed decisions.” The Plattes are the current owners of their family’s 100-plus year-old farm. Chuck and Sue took over the operation in 2006 from his parents. Since that time they have increased the herd size ten-fold, including the addition of second dairy farm, and the cropping to over 2,300 acres. For Chuck, who worked at General Motors for 30 years, assuming the family farm was his way of helping transition the next generation into the family business. “We want to be a bridge for Paul to be able to take on the dairy farm,” Chuck says. “I worked along side my dad on the farm, even when I was at GM, and Paul was always at my side, too. This is our way of keeping the family on the farm.”
Tax Calendar... JANUARY Form 1099 due to recipients of certain payments made during 2018 for interest, rent, contract labor, veterinarian services, etc.
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Provide employees copy of Form W-2 for 2018. Reminder From previous years: Employers must file Forms W-2 and W-3 with the social security administration, and payers must file Forms 1099-MISC and 1096 for Non-Employee Compensation with the IRS. Penalties will be assessed for not meeting the Jan. 31 deadline. Farm employers file Form 943 to report social security and Medicare wages, and withholdings. Non-farm employers file Form 941 for the fourth quarter to report social security and Medicare wages, and withholdings. Employers file Form 940 for federal unemployment tax.
FEBRUARY
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Payers must file Forms 1099 and 1096 (other than 1099-MISC for Non-Employee Compensation, which is due Jan. 31) with the IRS. If these forms are e-filed, the deadline is extended to April 1.
MARCH
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Qualifying farmers file individual tax return (Form 1040) and pay tax due if no safe estimated tax amount paid in and owe over $1,000 in tax.
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S Corporations file a 2018 calendar year income tax return (Form 1120S). Provide each shareholder with a copy of Schedule K-1. If not able to file, file Form 7004 to request an automatic six month extension. Reminder From previous years: Partnerships and LLC’s taxed as a partnership file a 2017 calendar year return (Form 1065). Provide each partner with a copy of Schedule K-1. If not able to file, file Form 7004 to request an automatic six month extension.
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Today, Paul and his wife, Brooke, are raising their two sons in the same house Chuck grew up in. It is a blessing they don’t take for granted.
Individuals file a 2018 income tax return (Form 1040) and pay any tax due. If not able to file, file Form 4868 to request an automatic six month extension. Any tax due must be paid with the extension. First quarter estimate is due for 2019 for individuals paying estimated taxes.
“We are seeing a lot of really good farmers selling their cows and leaving the farm. It is very sad. These are hard-working, good people who have farmed all their life and it still wasn’t enough,” Chuck says. ■
C Corporations file a 2018 calendar year tax return (Form 1120) and pay any tax due. If not able to file, file Form 7004 to request an automatic six month extension. Any tax due must be paid with the extension. C Corporations deposit the first installment of estimated income tax for 2019.
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3515 West Road East Lansing, MI 48823
Winter feature highlight... Whether it is a beloved yellow lab, a prize-winning Jersey heifer, a floppy-ear rabbit or an alpaca – when humans connect with animals, a special bond is created. When that bond becomes an anchor in difficult times, it can be life changing. For Josie and Dennis Kruzicki, bringing alpacas into their life not only changed their lives, but the lives of many around them. Read more on page 27.