Partners Fall 2020

Fall 2020

GreenStone FCS

Promoting the business success of our customers and the rural community

+F all 2020 Market Outlook + Stress Management + Crop Policy Enhancements

MAKING SLOW MAGIC Ball pg. 5

FALL 20 5 YBSF

Feature. Metro Detroit market farmer Alexander Ball successfully created a community supported agriculture (CSA) business with two acres of land, a unique business model, support from his local customers and a little help from GreenStone.

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21 GreenStone Story. GreenStone continues to provide technology loan management solutions to give our customers more options and control over their finances.

27 Country Living Feature.

Terry Maynard and his son, Austin, bought 92 acres of recreational land in Parma, Michigan with a country living loan and realized every hunter’s dream.

37 Crop Insurance Feature. Fifthgeneration cherry farmer, John Gallagher, has experienced multiple farming challenges, but acknowledges 2020 may be the toughest test.

45 Tax Feature. Farmers who are up to date on their financial reporting have been able to be proactive versus reactive to government program opportunities.

3 CEO Comments.

President and CEO Dave Armstrong delivers a fall member update.

9 Market Outlook.

The U.S. economy experienced a significant contraction during the second quarter; more recent economic data is signaling that third quarter GDP will show significant improvement.

12 Guest Column.

Three on-farm sites in Lenawee County are included in a MAEAP study on water quantity and quality.

13 Guest Column.

Environmental Scientist Alan Hahn covers several developments on the water regulation front.

18 Guest Column.

U.S. Representative Bill Huizenga provides a congressional update.

23 Directors’ Perspective.

Three GreenStone Directors look back, and consider what lies ahead.

25 Legislative Matters.

Farms that keep a mindful eye on technology changes, then weigh and measure the impact of adoption, may enjoy a leg up on competitors.

26 PAC Progress.

In U.S. politics, PAC is short for Political Action Committee. It is an organization whose purpose is to raise and distribute funds within the established political process.

30 Guest Column.

MOOD-TV shares their anticipation for fall’s deer hunting season.

31 Lawn and Garden Success.

You do not have to be a master gardener or turf specialist to prep your lawn and garden now for green success next spring.

32 Build your Personal Immune System.

Keeping your immune system strong is imperative in fighting off colds, flu and COVID-19.

41 DRP Dairy Trio.

Bi-weekly dairy marketing calls are now available to help producers stay abreast of the latest industry trends and plan for anticipated market changes.

8 Agriculture Blog Brief 14 Stress Management 15 Member News 16 Pause for Applause 17 Intern Wrap-Up 18 Candid Comments

Publisher’s Note: Will the kids go to back to school, or will they stay virtual? Will there be record yields, or will harvest not produce enough?

Will the current environment give way to open minded discussions, or will some dig in their roots even stronger. Will there be Halloween, or will it too be canceled? Will trade markets improve, or will prices falter?

We each have our own roller coaster of highs and lows, with questions that will eventually be answered without much of our own control. However significant – or small – the situation may seem to you, it’s always big to someone. For my younger family members, Halloween has been the question asked daily for the last month, with a frown of concern growing bigger each time. For my Dad and brothers back on their farms, trade and yields have been the unknowns running through their heads at various speeds over the last few years.

It’s all relative, and it’s felt by everyone. The only part of the roller coaster you can control is the seat you take – I’m choosing to sit up front with the optimism of a better tomorrow and a daily gratitude for what I have today – join me!

On page 4, Dave shares the strengthening barometer of the ag economy, as viewed by producers – now there’s a front seat view of a brighter future! On page 6, young and beginning farmer Alex Ball shares a glimpse into his last eight months and his formula for success – his customers! And the Gallaghers’ family approach to the cherry industry and how Whole Farm Revenue Protection crop insurance has helped them stay at the helm of their farm’s future – all on page 37. Then there’s the family who didn’t wait for the trend; on page 27 the Maynards made their move to the outdoors seeking a hunter’s dream and an open track of possibilities, purchasing recreational land and building their home together.

20 Grow Forward Grant

Need a bit more encouragement. There’s no better time than today to implement some of the tips and resources on page 14 for stress management!

20 Calendar of Events

Be grateful, appreciate yourself, and stay safe on this roller coaster of life! Happy reading.

19 Behind the Scenes

29 Country Living Blog Brief 33 Commodity Cuisine...

Bernadine’s Fresh Cherry Pie

34 Tech Tip 35 Crop Insurance News 36 Crop Insurance Calendar 39 Crop Insurance Policy Enhancements 43 Apiculture Crop Insurance 46 Tax Calendar

– Melissa

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

Editorial Cassie Bowman Amber Echlin Jean Macleod Melissa Rogers Sarah White

Art & Design William Eva Annah Horak

Partners GreenStone Farm Credit Services 3515 West Road East Lansing, MI 48823 800-444-3276 marketing@greenstonefcs.com

CEO Comments:

Primed for Fall WHAT A DIFFERENCE A YEAR MAKES! (AND I’M NOT TALKING ABOUT THE CORONAVIRUS, WHICH I’M SURE WE ARE ALL GETTING TIRED OF HEARING ABOUT AND WISH IT WOULD JUST END!) FROM ONE OF THE WETTEST YEARS ON RECORD FOR MANY PARTS OF OUR TERRITORY LAST GROWING SEASON, TO HAVING SEVERAL AREAS IN MODERATE DROUGHT TO ABNORMALLY DRY MOST OF THIS YEAR, IS QUITE A TURN OF EVENTS. WHILE THERE WILL LIKELY BE RECORD SETTING YIELDS IN MANY PARTS OF MICHIGAN AND WISCONSIN, THE HOT DRY SPELLS (ESPECIALLY IN THE EASTERN PART OF MICHIGAN) WILL TAKE THE BLOOM OFF WHAT WAS STARTING OUT AS A SPECTACULAR YEAR. OF COURSE, THIS CROP ISN’T IN THE BIN YET, BUT HOPEFULLY WE WILL BE BLESSED WITH GOOD HARVESTING CONDITIONS FROM HERE ON AND BE ABLE TO FINISH STRONG.

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Fall 2020 — Partners

Ag Economy Barometer Speaking of differences, the following is a summary of the Purdue University/CME Group Ag Economy Barometer, which I thought provided a good glimpse of how a cross section of farmers across the country are feeling about a number of issues – from trade, commodity yields and prices, to land values and changes in their expectations about equity changes in the upcoming year. The index is up 26 points from July, with a couple of sub-indices recording big improvements.

How would you have responded to the survey given your current situation and outlook?

“There was a big improvement in farmer sentiment in August, according to the Purdue University/CME Group Ag Economy Barometer. The index rose to a reading of 144, up 26 points from July. The Ag Economy Barometer is based on survey responses from 400 U.S. agricultural producers.

This month’s survey was conducted from August 17 through August 21, 2020.

Both of the barometers sub-indices also recorded substantial increases. The Index of Current Conditions improved to a reading of 124, up 13 points from July, while the Index of Future Expectations improved to a reading of 154, up 33 points.

Increases in the barometer and its two sub-indices marked the most positive readings since February 2020 when record highs were established and before the pandemic began. The improvement in sentiment was underpinned by expectations for excellent crop yields, as reported in the USDA’s August Crop Production report, and rallies in key agriculture commodity prices that took place this month amidst news of additional export sales to China.

Farmers were more optimistic about U.S. agriculture’s trade prospects compared to the past several months. In August, 67 percent of producers said they expect exports to rise over the next five years, compared to just 57 percent who felt the same way during the spring and summer months of 2020.

Farmers’ perspectives regarding land values also improved in August. Those expecting land values to increase over the next 12 months rose to 20 percent in August, up from 16 percent in July and 7 percent back in April. The percentage of producers expecting values to increase over the next five years rose to 59 percent, up from 48 percent in July and just 40 percent who expected higher values back in May.

While there is certainly no shortage of uncertainty and volatility in many aspects of our industry, the general economy, or our national politics, this “survey” does indicate that - in general - farmers are optimistic right now about their short- and longerterm future. Whether or not this sentiment holds, it’s nice to see many are at least feeling better and renewing their hope for better times to come, despite the challenges already encountered and that may continue for many months.

Customer Satisfaction Speaking of farmer sentiment, GreenStone sent out its annual customer satisfaction survey in August. The survey is typically sent in March with results back in July, but with all the uncertainty associated with the pandemic at that time, we delayed. Now that most of us have settled into some new routines, we felt it would be a good time to ask you how well we are meeting your expectations, especially given how we’ve had to change the way we do business with you on a daily basis due to the pandemic.

It is one thing to deliver great service when there are few obstacles, but it’s quite another when facing one challenge after another. So, if you are one of this year’s random survey recipients, please take a few minutes to let us know how we are doing and if there is anything we can do differently to better serve your needs!

Politics Aside, Vote!

Finally, this is an important election year and I encourage you all to make sure you take the time to do your research on where the parties and candidates stand on issues important to you. Our democracy is special, and it demands an informed and engaged electorate. Never think that your vote doesn’t count. It is our duty as citizens to ensure the freedoms we enjoy today, secured by those who have fought and sacrificed their lives for them, are preserved for many generations to come. No matter the outcome, I pray we can begin to heal the divisiveness that increasingly separates us as a country. Together, we need to continue to be that “shining light” the world looks to for hope in a better tomorrow.

In closing, I want to thank you for your business and the patience you have shown in working with us, in many cases, much differently than any of us would like during these difficult times.

Feel free to reach out to me anytime if I can be of assistance.

I hope you enjoy this issue of Partners. As always, our team strives to provide you with a variety of information you can use in not only your business, but daily life as well. Best wishes for a safe and productive harvest!

Each summer survey respondents are asked their opinion regarding expected changes in farmers’ equity position over the upcoming year. The percentage of respondents in the August 2020 survey who expect equity to decline in the upcoming 12 months was 38 percent. This marked the second lowest percentage since the survey question was first asked in 2016 and was well below a year earlier when 48 percent of respondents said they expected farmers’ equity to decline.”

Dave Armstrong

517-318-4105 dave.armstrong@greenstonefcs.com

Partners — Fall 2020

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A MARKET FA R M E R

Making Slow Magic METRO DETROIT MARKET FARMER ALEXANDER BALL SUCCESSFULLY CREATED A COMMUNITY SUPPORTED AGRICULTURE (CSA) BUSINESS WITH TWO ACRES OF LAND, A UNIQUE BUSINESS MODEL, SUPPORT FROM HIS LOCAL CUSTOMERS AND A LITTLE HELP FROM GREENSTONE FARM CREDIT SERVICES.

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GROW

“It’s been insanely hard,” Alex states emphatically, while adding, “But I love the challenge of a ‘slow farming’ business. It fuels me every day. I’m always asking, what can I do next? How can I get better?”

Eight years ago, at age 18 and with no previous experience, Alex researched the internet for how-to-farm information and leased some land to begin growing vegetables. The first year on his rented acreage, two gentlemen walked out of the woods and informed Alex that a pipeline was being built across his fields the following season. He didn’t give up, but admits it was a continual struggle to find land to lease over the next four years.

Making the decision to finally buy his own land was almost as frustrating. After looking at nearly 50 properties, Alex found two acres of zoned land with affordable taxes, five miles from his home in Romulus – but he couldn’t find a lender willing to finance a small farm.

“I was desperate,” Alex recalls. “No one would give me a loan. I went to the Farm Service Agency for help and they wouldn’t help me, which was really demoralizing.

They did tell me to check out GreenStone, so I called and talked to Senior Financial Services Officer Mike Niesyto at the Ann Arbor branch. I emailed him with information about my finances, my website, and my business plan, and a day later Mike said, ‘hey, I like what you’re doing. I think we can work with you!’”

“I met Alex in 2017 when he was looking for a lender to finance a two-acre parcel,” recounts Mike. “Early on in the conversation I could tell his passion for agriculture was immense, and he seemed to have really great character. Those subjective measures can really go a long way when a lender is working with a young, beginning or small customer.”

Alex spent the first year as a property owner clearing out lowland forest and getting the acreage in shape while maintaining his greenhouse production. He spent the next two seasons building drainage and irrigation systems, ditches, levees and ponds on what he realized was wet, tired land.

“I was barely making enough to cover my expenses.” Alex says. “I was living below poverty line. But I just had a dream, and I knew the only way to get it done was to get into the field and plant as quickly as

possible, with as little debt as possible. I was in the business for the long-term and I told myself, no rush — I was going to take about three or four years and just do it right.”

Alex’s Old City Acres farm specializes in small-scale, intensive market gardening.

The farm’s returns per acre are relatively high compared to sweet corn production at a large operation, for example, and Ball has found farming year-round under hoops, low tunnels and plastic to be a very solid investment.

Formula for success

It’s not just that Ball tends to his tender winter greens and spring and summer vegetables organically, sustainably and lovingly, as the Old City Acres website states; it’s that Alex has created a community of regular customers eager to support his produce and endeavor.

to just three areas: Romulus, where he grew up and has family and friends who want to buy from him; Ypsilanti, a college town outside of Ann Arbor’s market-saturated reach; and, the rural neighborhood surrounding his own farm.

“I’ve really cultivated an awesome following over the last eight years,” Alex says. “I see my customers more like family. And having that customer base has been a lifesaver.

“You only need 50 solid customers with a $20 per week membership. So instead ➡O pposite page: Alex Ball sells flexible, 12-month CSA memberships and delivers vegetables nearly year-round from crops grown under hoops. ➡T op of page: Farmer Alex Ball tends to his tender winter greens and spring and summer vegetables organically, sustainably and lovingly raised, as his Old City Acres Farm website states.

“Oh man, we have a ravenous fan base,” he jokes. By design, he sells flexible, 12-month CSA memberships and delivers vegetables

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of doing a shotgun approach, I’ve been refining my products and cultivating the relationships I have with these people. My customers can choose which vegetables they want to buy, and they can choose their own schedule. Because of our flexibility, we’re attracting a diversity of untapped, younger consumers. It’s a very customer-oriented CSA model. The produce is fantastic, but on top of that, I make sure our service is even better. I quickly realized that if you take care of people, then they are there for you when you need them.”

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I’ve really cultivated an awesome following over the last eight years,” Alex says. “I see my customers more like family. And having that customer base has been a lifesaver.

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This past March, Alex needed his base of loyal supporters more than ever when the COVID-19 hit Michigan and threatened his business. Overnight, farmers markets shut down and restaurants canceled their wholesale produce accounts. Regrouping, Alex and a couple of friends built an entirely new driveway for the farm and put in a small parking lot. He then installed a self-serve farmstand, complete with refrigerated coolers, in front of Old City Acres farm and opened the doors to capture drive-by business.

Ball feels that 2020 has been more difficult than the first tough years on his property, when he was turning a forest into a farm. He believes that COVID-19’s trial by fire forced him to build a solid infrastructure that will help him stabilize his operation for the years ahead. Agile thinking is part of Alex’s formula for success, which also includes developing a niche market with high-quality product, creating a strong and growing community, and providing superior service that reflects the needs of customers.

“I realized really early on in farming, that if I couldn’t adapt I was going to quickly fall by the wayside,” Alex comments. “COVID is hard and it’s been rough getting through it.

But farmers deal with difficulties all the time; hard is a normal thing in agriculture. We can do this.”

Growing upward

Ball doesn’t plan to expand to a larger property any time soon. His plan is to grow his farm upward, rather than outward, using his current acreage to its peak capability while running an all-year, greenhouse-aided ➡ Left: Spending the time to ensure his produce is fantastic is important to Alex Ball, but he knows his service needs to be even better. Alex has quickly realized that if he takes care of his customers, then they will be there for him when he needs them.

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operation. At this point, Alex is only using half his property. He expects to be cultivating both acres over the next three to four years, and has thoughts of using the wet forest land for mushroom production.

“If I want to expand certain crops, there is rentable land down the street from me. To buy more land, I would have to scale up my infrastructure, buy more equipment, hire employees and take out more financing.

Right now, my risk ratio is safe. If I had a huge operation, things like flooding and COVID-19 could take me down. I am more comfortable with slow, incremental growth,” says Alex.

“I’m a big proponent of slow food,” he adds.

“Local food, traditionally prepared. I’ve never been in an insane rush to be the biggest or fastest producer. I’m 26, and I have the time to start small, avoid unnecessary debt and live a profitable, agricultural lifestyle close to community.

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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 greenstonefcs.com/openfieldsblog.

Commodity Report: posted at the end of the month Dr. Kohl: Common Questions Dr. Kohl reviews lessons that this pandemic experience taught us about the strengths and weaknesses of the agriculture industry.

Commodity Report: Wine Outlook While the pandemic has taken a major toll, the wine industry still looks bright - continuing to grow, with the expectation of more investments.

“It’s a slow model that works for me.” ■ ALEX BALL’S ADVICE FOR NEW FARMERS Find an internship. If I could do it over, I would spend a couple of years working on a farm, getting hands-on experience in the field, before launching my own operation!

Educate yourself. I read tons of books, and grabbed any opportunity to learn about agriculture. If I heard about a workshop and I thought I might learn just one thing from it, I’d attend. University extensions have so many useful, free resources. Michigan State University Extension was especially helpful; I could download entire books on farming best practices.

Develop colleagues. Find peers with similar farming practices you can talk to on a weekly basis. I have a farmer friend who also has a fairly wet farm, and we talk regularly about crop fertility and water management.

Commodity Report: Apple Outlook Despite the many new challenges for apple growers this year, Michigan is expecting a very respectable crop in both quantity and quality.

Grow Forward Grant Recipient Spotlight: Jared Hautamaki “I am quite happy to be making some positive change,”Jared Hautamaki states. As a part of the Native-American community with a small farm, I appreciate all that GreenStone has done.” ■

Know your niche. The best part of my work is interacting with so many awesome people. I could never drop off crops at a hub and let it go off somewhere else. I like that personal touch, and my business segment is a consumer-friendly model built all around community.

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MARKET OUTLOOK FALL 2020

By Matthew Naeyaert,GreenStone Senior Credit Analyst, Capital Markets, and Nick Jablonski, GreenStone Credit Manager, Capital Markets.

TO NO ONE’S SURPRISE, THE U.S. ECONOMY EXPERIENCED A SIGNIFICANT CONTRACTION DURING THE SECOND QUARTER AS A RESULT OF THE COVID-19 PANDEMIC AND THE RESULTING GOVERNMENT POLICIES AIMED AT SLOWING THE SPREAD OF THE VIRUS. REAL GDP DECLINED BY A STAGGERING 32% ON AN ANNUALIZED BASIS DURING THE QUARTER, AN ALL-TIME RECORD. WHILE THIS WAS CERTAINLY AN EYE-OPENING FIGURE, MORE RECENT ECONOMIC DATA IS SIGNALING THAT THIRD QUARTER GDP WILL SHOW SIGNIFICANT IMPROVEMENT AS THE U.S. ECONOMY HAS BEGUN TO RECOVER OVER THE COURSE OF THE SUMMER. .

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Economic Recovery

Two of the strongest areas of the economic recovery have been in consumer spending and the housing market/residential investment. The significant fiscal stimulus provided by the Federal Government was a boon to consumer spending and helped mute the impact of the record job losses experienced earlier this year. The housing market and overall residential investment have also shown stability despite the unprecedented stress seen in the labor market. This relatively strong housing market environment looks poised to continue for the remainder of the year as the combination of historically low interest rates and shifting consumer preferences have buoyed home prices. While the GDP outlook for the third quarter is much improved compared to the severe slump seen in Q2, many several uncertainties still exist. Most notably, an increase in COVID-19 outbreaks, slow progress regarding vaccine developments, and reduced fiscal stimulus could all potentially cause economic activity to remain depressed for the remainder of this year and into next year.

Labor Market

The U.S. labor market has followed a similar trend as the overall economy throughout 2020, with the unemployment rate spiking sharply to 14.7% in April before experiencing improvement in the months that followed. The August 2020 report from the U.S. Bureau of Labor Statistics showed that nonfarm payrolls rose by 1.4 million in August and the unemployment rate fell to 8.4%, below 10% for the first time since the beginning of the pandemic. The retail, leisure and hospitality, professional and business services, and health services sectors have all experienced dramatic rebounds in hiring over the last several months.

While the most recent employment data does show meaningful improvement, it is important to note that more than half of the jobs lost since February have still not returned and the pace of the labor rebound appears to be moderating.

Moving forward, the consensus forecast is that payroll growth will be largely stagnant as the economy looks to slowly regain its footing.

Federal Reserve Chair Jerome Powell recently announced changes to the Federal Open Market Committee’s (FOMC) long run targets and monetary policy strategy. Mr. Powell specifically announced a change in the committee’s targeted inflation goal. The FOMC will now “seek to achieve inflation that averages 2 percent over time”, indicating they will allow inflation to exceed their 2% target if the inflation rate had been averaging below 2% for a period of time.

While the FOMC is still maintaining their longterm inflation target of 2%, the move signals

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This relatively strong housing market environment looks poised to continue for the remainder of the year as the combination of historically low interest rates and shifting consumer preferences have buoyed home prices.

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that the Fed will prioritize the achievement of full employment over preventing inflation from rising above 2% in a given period. Many observers take this pronouncement to suggest that the Fed will likely keep interest rates near 0% for longer than previously anticipated in an effort to provide accommodative monetary policy and support the economic recovery.

Agriculture

Turning to Agriculture, forecasts for U.S. corn and soybean production are pointing to a record year. According to the National Agricultural Statistic Services’ (NASS) survey results, estimates for total corn planted and harvested acres are 92 million acres and 84 million acres, respectively, both of which are up 3% from last year. Combined with an estimated yield forecast of a record high 181.8 bushels per acre, total U.S. corn production is projected to equal 15.3 billion bushels, representing a 12% increase from 2019. Nationwide over 60% of corn acres are in good to excellent condition. Michigan corn acres currently trail the national average with roughly 50% in those two categories, while Wisconsin corn acres are well above the average at just below 80%. Forecasted production of soybeans are also calling for a record 5.1 billion bushels, a 13% increase from last year. According to the NASS survey results, total soybean planted, and harvested acres are projected to equal 83.8 million and 83.0 million, respectively, and the average yield forecast is 53.3 bushels per acre which would be an all-time record.

Across the country soybean acres in the good to excellent categories is just above 65%, and again Michigan is below the national average at roughly 60% and Wisconsin is above average at over 80%. The primary reason for the disparity between Michigan’s crop progress versus the U.S. average and Wisconsin is due to dry conditions throughout the growing season as approximately 20% of the state’s counties experienced abnormally dry conditions during the summer months.

Dairy

The dairy industry has been significantly impacted by the COVID-19 pandemic as consumers dramatically changed their consumption habits, thereby causing food service demand to plummet and sales at grocery stores to rise sharply. As a result of these changes the dairy supply chain experienced significant disruptions as the industry attempted to adapt to rapidly changing market dynamics. These shifting dynamics caused unprecedented price volatility in wholesale Cheddar cheese prices, which translated into large moves in Class III milk prices. The Class III milk price briefly plummeted to a low of $12.14 per cwt in May before surging back to $24.54 in July. Dairy farmers responded to the low prices in May by reducing milk production, with a 0.5%

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Like all areas of the economy, the long-term outlook for the dairy industry is still uncertain and will be dependent on consumers’ disposable income and buying behavior.

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directly to China. Even more importantly, this year’s soybean export indicators are significantly higher than they were at this point in 2017, the last “normal” trade year, when a total of 258.4 million bushels of 2017/18 new-crop sales had been recorded with 113.7 million of such bushels sold to China. In total, 14.9% of total estimated 2020/21 soybean production had been purchased for export as of August, which is significantly higher than the 4.5% of the new-crop 2019/20 production that had been purchased through the same week in 2019. It’s also well above the 5.9% of the new-crop 2017/18 production that had been purchased through the same week in 2017.

While these strong early season sales do not necessarily guarantee an increase in exports for the full year or an improved pricing environment, especially given the expectation of record high production, they do they do provide tailwinds for the industry and hint at strong international demand for many U.S. agricultural products. Ultimately only time will tell if large new-crop sales commitments turn into actual exports that help China successfully fulfill its 2020 Phase 1 commitments, however, at this point the USDA is projecting soybean exports to total $20.4 billion, a 26% increase compared to last year, largely due to expected strong demand from China and reduced competition from Brazil.

year-over-year decline seen during May (represents the largest April to May decline in history). However, dairy farmers also reacted to the futures price rebound, with production increases amounting to a 0.5% year-over-year jump seen in June 2020.

The imbalance in dairy supply and demand appears to have leveled out a bit, at least for the time being, with the most recent USDA forecasted Class III milk price for 2020 and 2021 at $17.40 per cwt and $16.10 per cwt, respectively. Like all areas of the economy, the long-term outlook for the dairy industry is still uncertain and will be dependent on consumers’ disposable income and buying behavior. Ultimately, those producers with a low cost of production and a well thought out risk management plan will likely continue to outperform.

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Exports

Export volumes, particularly to China, continue to garner significant attention within the agricultural community. In particular, purchases of U.S. soybeans are being closely watched and interpreted as potential signs as to whether China will be fulfilling their Phase 1 commitments under the trade agreement that was finalized in January 2020. According to FAS’ latest report, new-crop soybean sales to the world currently stand at a total of 660.5 million bushels, with 377.4 million (57%) of these bushels headed directly to China. These figures have garnered a lot of attention because at this point last year only 164.2 million bushels of 2019/20 new-crop export sales had been recorded, with just 7.1 million bushels headed

Exports of U.S. pork have been similarly strong, despite supply chain disruptions in the U.S. resulting from coronavirus.

From January through May 2020 pork exports rose 21% above the prior year, but according to Dr. James Mintert at Purdue University, “it’s pretty clear that pork exports would have been even larger if it were not for the disruptions that took place as a result of COVID-19 cases, which led to processing plant closures and production slowdowns, as well as weakness in some major importers economy’s”. It comes as no surprise that rising pork exports to China are almost entirely responsible for the yearto-date increase in U.S. pork exports.

During the first 5 months of 2020, U.S. pork exports to the Chinese mainland rose by a whopping 427% compared to 2019, totaling nearly 1.1 billion pounds in 2020 compared to 202 million pounds in 2019. ■

Water Quality Study Looks at Drainage Management as a Conservation Practice

By Meredith Smith, Communications Representative, Michigan Agriculture Environmental Assurance Program (MAEAP)

Every year, Western Lake Erie experiences algal blooms, some of which can be harmful to aquatic life and affect local drinking water. There are many factors causing harmful algal blooms, including nutrient-rich water from wastewater treatment plants, farm fields, the effects of invasive species, and the warm, shallow waters of the lake.

The Michigan Departments of Agriculture and Rural Development (MDARD) and Environment, Great Lakes, and Energy (EGLE) are working on one potential solution to reduce the amount of nutrients entering Lake Erie from farm fields.

In partnership with Michigan State University (MSU), the two departments are conducting a five-year, edge-of-field water quality research project to investigate the benefits of water management as a conservation practice in reducing phosphorus loss from farm fields into the Western Lake Erie Basin watershed.

“This is the most comprehensive study of drainage management structures,” said Robert Day, Environmental Manager for EGLE. “We think the drainage structures have a lot of potential because they are

reducing flows and holding water back on the landscape, which in turn reduces nutrient loading into the lake.”

“The causes of algal blooms in Lake Erie are numerous and complex,” said MDARD Director Gary McDowell. “We know fertilizer from farm fields is one of the causes, and we are working to reduce the amount of phosphorus and other nutrients from entering the lake. This project will hopefully give farmers another tool to help take care of the environment, protect our waterways, and increase their crop yields by keeping much needed nutrients on their fields.”

For this project, three on-farm sites were selected in Lenawee County. Each site received two different conservation practices: one was a saturated buffer and the other controlled drainage. Since the project finished construction in 2018, baseline data has been collected on water quantity and quality at the drainage system outlets of each sites.

Controlled drainage is the practice of managing water in the field by changing the outlet level of the drainage system. This practice is used to reduce drainage water

volume and nutrient load transport to surface water.

Saturated buffers store water within the soil of the field by diverting drainage water from the control structure (that raises the water table) into shallow perforated drains that run parallel to the ditch. This practice forces water to flow through the natural filter of the soil, so that contaminants can be removed.

“We are approximately halfway through the project,” said Dr. Ehsan Ghane, lead researcher on the project and Assistant Professor and Extension Specialist in the Department of Biosystems and Agricultural Engineering at Michigan State University.

“We have implemented the controlled drainage system at two of the three sites.

On October 1, we will be implementing the saturated buffer system on the third research site.”

Dr. Ghane and his team are collecting flow measurements and water samples at each site. It will take the rest of the project timeline to determine the effectiveness of the conservation practices in preventing nutrient loss and potentially improving crop yields. MDARD, EGLE, and MSU believe producer involvement in implementing conservation practices— specifically drainage management—in the Western Lake Erie Basin watershed is crucial to helping prevent harmful algal blooms. By reducing the amount of nutrients from farm fields into the lake, it will help reduce the production of potential harmful algal blooms.

“We are encouraging farmer involvement because it is a win-win,” said Day. “We can reduce nutrient loads to the lake and they [farmers] can improve productivity, which is good for their bottom-line.”

“This research is important for many reasons, including the well-being of the public, economy, recreation, tourism, and safe drinking water,” said Dr. Ghane. “It is important for agriculture because farmers care about the environment. They are motivated to help protect the environment as well as growing crops that feed us all.”

The edge-of-field project will continue until 2022. For more information about the project, contact Dr. Ehsan Ghane at ghane@msu.edu. ■ The opinions stated herein are not necessarily those of GreenStone Farm Credit Services.

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Regulated Water:

The New Rule, A Supreme Court Ruling, and Politics

By Alan Hahn, Environmental Scientist

Can I farm my land? Will I need a permit for my drainage water?

How can I know what to do with any certainty? These questions are back in the forefront of environmental issues important to farmers as federal regulations and definitions of regulated water have changed again (see Partners Spring 2019 for our previous discussion on this topic). Further, this definition may change again in the near future.

This is significant because the new rule lists 12 categories that are NOT jurisdictional waters. Among them, the new rule excludes ephemeral streams, groundwater, and artificiallyirrigated areas.

This update will touch on three main points:

In a recent interview, Don Parrish, senior director of regulatory relations at American Farm Bureau Federation, said, “…the good news, the Navigable Waters Protection Rule is going into effect in every state and every territory except Colorado. That is a really good development for farmers and ranchers [emphasis added].” In Colorado, a ruling by a federal judge agreed to “freeze” the NWPR in that state.

1. the new Waters of the United States/Navigable Waters Protection Rule (WOTUS/NWPR) issued earlier this year 2. the US Supreme Court decision that added some confusion to the issue, and 3. how politics may play a significant role going forward.

Simplistically, the long-debated issue of regulated water boils down to two prepositions: “to” and “from”. Does the water in question flow to navigable or jurisdictional waters from a point source? (The podcast Legal Docket Episode Three does a good job fleshing out this idea.)

Navigable Water Protection Rule

First, a brief summary of the new rule: The Navigable Waters Protection Rule (NWPR) became final on June 22, 2020. The NWPR focuses on the “to” aspect – that is, where is the water in question going to flow? More specifically, will the water flow to a jurisdictional water body?

The NWPR significantly narrows the definition of a jurisdictional water when compared to the previous WOTUS rule (August 28, 2015) to include these four categories: 1. Territorial seas and traditional navigable waters.

2. Tributaries of such waters.

3. Certain lakes, ponds, and impoundments of jurisdictional waters.

4. Wetland adjacent to other jurisdictional waters (other than waters that are themselves wetlands).

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As with any new regulation, it will likely take some time to see how regulators will apply the rule. Memoranda have been issued that more clearly define irrigation and drainage ditches.

Maui Supreme Court Ruling and Functional Equivalent

As the final NWPR was being issued, the Supreme Court of the United States (SCOTUS) ruled on a long-debated case in Hawaii (County of Maui v. Hawaii Wildlife Fund).

At issue in this case was the “from” aspect of the water discharge.

The wastewater treatment plant in Maui discharged treated water from the treatment plant to deep wells (underground injection control or UIC wells). These wells discharged to the groundwater and the groundwater to the ocean. This was an approved practice and did not require a discharge permit. The SCOTUS ruling changed this in the Maui Decision.

SCOTUS Justice Brayer introduced an important new term in this decision: “Functional Equivalent.” Is the discharge the functional equivalent of a direct discharge from a point source to jurisdictional waters? The Justices established a seven-factor test, with the most-important factor being time and distance.

In Maui, using a dye, they could actually trace both time and distance of the discharge.

In the NWPR, groundwater is specifically excluded as jurisdictional water, but in the Maui Decision, the discharge to groundwater was considered the functional equivalent of a discharge from a point source to jurisdictional water.

“

First, states that have the authority to administer the Clean Water Act must comply with federal regulations, but they are free to make state regulations stricter than the federal version.

”

How this decision may affect future disputes over regulated discharges could be the subject of a future update here.

Politics of Water

Finally, we need to consider how politics might influence environmental regulations. First, states that have the authority to administer the Clean Water Act must comply with federal regulations, but they are free to make state regulations stricter than the federal version.

Second, the federal elections may play a significant role in the future of WOTUS/NWPR. The Obama Administration took a far-more conservative approach to jurisdictional water when they issued the 2015 rule, compared to the current rule under the Trump Administration. Further, the SCOTUS may look very different in four years. We currently have two Justices in their 70s and one Justice in their 80s. SCOTUS decisions can, and often do (e.g., Maui), play a significant role in important environmental issues.

This is a very brief update on an increasingly complex and important issue. That we need clean water for a healthy society is self-evident.

How we accomplish this while preserving freedoms and allowing for vibrant economy may be a bumpy ride. ■ ABOUT THE AUTHOR

Alan Hahn is an Environmental Professional and Business Development Manager at The Dragun Corporation in Farmington Hills, Michigan.

The opinions stated herein are not necessarily those of GreenStone Farm Credit Services.

Stress Management for Farmers Between the long hours of harvesting, ever-changing market prices, laborious working conditions and the stress of balancing it all, it’s far too common for the mental health of farmers to take a backseat.

Just like managing your farm, you need the right resources and guidance to manage your mental health and it needs to be flexible enough to fit your busy lifestyle; that’s where we come in. We’re sharing three tips to combat stress along with the resources GreenStone and the Farm Credit System have curated to help farmers re-prioritize their mental health.

1. Seek Gratitude: With harsh weather, low prices and daily challenges, it’s easy

to feel like you are never going to catch a break. Unfortunately, this can lead to a negative mindset. There is always something to be thankful for; to reset your mind, although some days it may be more difficult to find than others, we challenge you to look for 3-5 things in your life each day to be grateful for.

2. P ause and Appreciate Yourself: When it comes to your employees, you

praise or acknowledge them when they do well, but do you ever give yourself credit? You work hard, day in and day out, yet the chances of you taking the time to pause and appreciate your own efforts are probably slim to none.

Change that by taking a few moments after you’ve finished a chore, task or project that’s been lingering on your to-do list too long and give yourself a mental (or physical) pat on the back.

3. S tretch it Out: Farming often consists of backbreaking and challenging

activities; it’s surprising how few farmers take time to stretch, despite the benefits far outweighing the little time it requires. Taking a few minutes at the start and end of your day to stretch doesn’t just help your muscles relax, but your mind too. Stretching has been proven to calm down the mind and when added to your bedtime routine, can help you sleep easier.

Although adding these three tips into your daily life may ease stress, it might not be enough to manage your mental health. Not to worry, there are more resources available, designed specifically for farmers.

GreenStone recently teamed up with the Michigan Foundation for Agriculture to create Farmers After Hours series: Real Talk for Real People. This online webinar series focuses on mental health in agriculture and experts share advice on how to easily manage your mental wellbeing through simple changes in your life in a series of 20-minute videos. Visit www.michfb.com/mi/ MiFoundation4Ag/ to learn more or watch the webinars.

Rural Resilience, a farm stress training program, provides an in-depth look at farm stress, ways to reduce stress, and a look at how stress in farming families can create a domino effect. Developed in a partnership with Farm Credit, Michigan State University Extension, University of Illinois Extension, the American Farm Bureau Federation, and National Farmers Union, this free training can be completed at your own pace and covers three units: Managing Stress, Communicating with Distressed Farmers and Suicide Awareness.

Register now for Rural Resilience at farmcredit.com/rural-resilience. ■

Partners — Fall 2020

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CONNECT

NEWS: STEPPING UP TO 2020 Partnering with our customers has been a primary focus during the challenges of 2020, and we’re proud GreenStone has been able to quickly pivot to meet new and emerging needs of farmers and producers. Supporting the agriculture industry has also meant assisting our own customers with needed resources, and the leadership GreenStone has offered to state and federal agencies has expedited financial relief for many farmers hit hard by current circumstances.

GreenStone’s dedicated response during these difficult times has extended support, information and legislative advocacy to our cooperative members in critical need of timely solutions. From the Paycheck Protection Program to Patronage, we’ve used our resources to build and refine flexible, personalized products and services to help keep our customers profitable: Paycheck Protection Program (PPP) – Knowing how vital this assistance was to our members, GreenStone quickly rallied to design a new course of action to make the Small Business Administration’s PPP available to all interested members. We worked aroundthe-clock, quickly and collaboratively with more than 1,400 farmers and agribusinesses to successfully submit applications through a streamlined, online process before the deadline. Today, we are working hand-in-hand with our members on the loan forgiveness process as SBA-issued guidelines evolve.

MI Agricultural Safety Grants – We understand the unforeseen coronavirus-related expenses farmers encounter as they make their farms safe for workers. Selected by the MEDC for the depth and breadth of our agricultural knowledge, GreenStone hosted the application process for the Small Farm Safety Grant and the Agriculture Safety Grant, helping nearly 500 farmers and processors implement COVID-19 safety measures to help protect their workers.

Loan Conversions – With interest rates at historical lows, we have been proactive in reaching out to our customers to refinance existing loans. A loan interest rate conversion option does not require an appraisal and

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Fall 2020 — Partners

is typically much faster and less expensive than refinancing. The conversion allows loan customers to discuss the interest rate options with me, accept the new lower interest rate, and remotely sign the agreement. Just this year, we’ve reduced rates nearly 1% on approximately 8,500 loans for our members.

The speed, convenience and money-saving advantages of a GreenStone loan conversion makes the process a valuable benefit of your co-op membership.

Improved Crop Insurance Protection – To better protect our farmers, we’ve been preparing for the 2021 crop year by submitting recommendations to the Risk Management Agency for certain issues that are not adequately covered under current crop insurance policies. Recommendations would improve coverage for Whole Farm Revenue Protection - Revenue to Count for Crop Insurance Indemnities, Whole Farm Revenue Protection - Direct Marketing, and for Sweet Cherry ARH Policy. Our legislative advocacy is aimed at safe-guarding our members’ operations, and ensuring fair coverage for all of our farmers. [insert page number for Cory’s advocacy article] Online Banking Technology – GreenStone’s long-term technology plan and ready response system ensured our members had convenient, uninterrupted access to their loans and documents during Covid-19 office closures.

Our online banking guaranteed customers had seamless access to their financial accounts and paperwork. Customers continue to benefit from their personal My Access portal to manage their loans, submit online loan requests, and sign and share confidential

documents securely. Our goal is to make working with us as easy as possible, giving our agriculture customers more time on your farm.

Dairy Farmer Support – GreenStone’s crop insurance professionals, with dairy expert Dr. Marin Bozic, have developed personalized risk management opportunities (read more on page 41) for Michigan and Wisconsin dairy farmers that go beyond insuring product, to actively helping dairy operations succeed. With an analyzer tool that tracks and compares data for budgeting and forecasting, and online presentations highlighting the latest dairy trends, GreenStone customers have insider access to a solid line-up of support.

Patronage – In March, GreenStone returned a record-breaking $100 million in patronage checks to more than 25,000 members. This annual ‘pay back’ is the result of the success of our members and their hard work despite current agricultural challenges. Patronage is one way we can show our deep appreciation for American agriculture, and our gratitude to each of our members for their business and ongoing partnership. Despite the pandemic, GreenStone is still on track to provide patronage checks again in 2021.

As a financial institution serving agriculture for over 100 years, GreenStone is an industry leader with a proven track record for taking care of our customers in good times and bad. We stepped up for our members during a difficult spring and summer, and we will continue to build and refine our services for our members as we take on fall and winter, and the upcoming challenges of the new year. ■

Farmers After Hours: Profitability and Financial Fundamentals With harvest season in full swing, the list of farm chores never seeming to end and the chaos of everyday life making it difficult to find extra hours in the day, it becomes all too easy to push off those pesky items on your financial to-do list.

To equip you with the financial tools and resources necessary to finally check off those items, GreenStone has partnered with the Michigan Foundation for Agriculture for the “Farmers After Hours series: Profitability and Financial Fundamentals.“ The series kicked off on September 16 with a one-hour, live panel of farmers openly sharing their financial struggles, how they overcame them, the resources they utilized and more. Each week, industry experts share information during a weekly 20-minute webinar on a variety of financial topics such as tax and accounting, the importance of a balance sheet and how to prepare for farm succession.

The series wraps up with another live panel including all topic experts

when listeners will engage and ask the experts questions.

Farmers After Hours series: Profitability and Financial Fundamentals is free to attend.

Watch each week for valuable information for your farm: • Week 1 – Live Farmer Panel (60 minutes) • Week 2 – Understanding your balance sheet (20 minutes) • Week 3 – Preparing for Tax Season (20 minutes)

Win Dollars with your Deer in Wisconsin and MI U.P.

• Week 4 – Best Accounting Practices (20 minutes)

This hunting season, GreenStone will be giving away $1,000 in cash prizes during the Annual Deer Challenge. Hunters who reside in northeast Wisconsin or Michigan’s Upper Peninsula are invited to participate for the chance to win big bucks now through Friday, December 4, 2020. The contest features both adult and junior classes and grand prizes will be awarded in each class:

• Week 5 – Innovative Revenue Sources (20 minutes) • Week 6 (held on October 21) – Learning the Lending Process (20 minutes) • Week 7 (held on October 28) – Transitional and Estate Planning (20 minutes) • Week 8 (held on November 4) – Live: Ask-the-Expert panel (90 minutes) For more information on the series, to register for upcoming webinars, or to watch past webinars, visit www.michfb.com/ mi/MiFoundation4Ag. ■

Big Buck Contest Adults (18 years and older) • First Place - $400 • Second Place - $200 • Third Place - $100

Pause for Applause...

1. Cory Blumerick, Senior

Crop Insurance Specialist, was recognized with the 2020 Fruit + Vegetable 40 under 40 award. This honor is reserved exclusively for outstanding young industry professionals who are demonstrating exceptional commitment to making their mark in the industry through innovation and leadership. Congratulations on this distinguished honor!

Junior Buck (17 years and younger) • First Place - $200 • Second Place - $100 Along with the grand prizes, all entrants who harvest a deer with any legal gun, bow, muzzleloader or crossbow will be entered into a drawing to win a game camera or a $25 Cabela’s gift card. Trophies will also be awarded to junior hunters who harvest their first deer.

To qualify, deer must be harvested in Michigan or Wisconsin and the hunter must complete the deer entry form. Submit the form online by visiting www.GreenStoneFCS. com/DeerChallenge For more information, visit www.GreenStoneFCS.com. ■

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.

2. Ben Spitzley, VP & Commercial Lending Group Manager, was recently appointed to the Michigan Dairy Memorial and Scholarship Foundation board as a result of his continuous efforts to be active and provide value to the Dairy Industry.

Congratulations, Ben!

October Christopher Vargas (5) Kyanne Rodabaugh (20) Ian McGonigal (20) Kathleen Esckilsen (40)

MPPA also honored Jason Klein, with Dykhuis Farms, the Swine Herd Manager Award for his superior commitment, knowledge and leadership in his role as a manager of a pork production operation.

December Eric Smith (5) Heidi Pettis (10) Matt Willbrandt (10) Susan Smith (35)

November Nicole Burke (10) Trina Powers (15) Leah Mills (15)

Partners — Fall 2020

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“I learned a ton of things that are never taught or mentioned in everyday life or a class.”

INTERN WRAP-UP AS GREENSTONE’S 2020 INTERN CLASS TRADED IN THEIR WORK LAPTOPS AND COMPANY BADGES FOR COLLEGE TEXTBOOKS AND HOMEWORK, THEY TOOK ESSENTIAL SKILLS WITH THEM. THESE 20 INTERNS WERE CHALLENGED WITH COLLABORATING ON GROUP PROJECTS, STRATEGIC PROBLEM-SOLVING, AND TIME MANAGEMENT WHILE WORKING REMOTELY AND ADJUSTING TO THE NEW NORMAL. Since May, these students with varying college majors and interests spent their time immersed in their teams via Webex and phone calls, with the option to work in the office as the summer progressed.

Ranging from incoming college sophomores to graduate students, for some, this internship was the first opportunity to work in a professional setting while for others, it was a steppingstone to greater opportunities in their career.

Intern roles included preparing tax and accounting financial statements, analyzing credit summaries, appraising farm equipment and properties, filming and creating company 17

Fall 2020 — Partners

videos, and carrying out many more significant tasks.

In August, they put their public speaking skills to the test, ultimately presenting their summer projects and responsibilities during the internship final presentations.

Embracing technology, they presented via a Webex to the executive leadership team, their department team, and many other employees. The presentations ranged from discussing peer comparison reports to social media strategies, and greatly impressed all who attended the meeting.

“The final presentation allowed me to share my internship experience and the skills that I

“I enjoy wor king at GreenStone b ecause of the positive company culture and t he way everybody is so encouraging .”

gained throughout the past few months,” states public relations intern Sarah White. “I am humbled and grateful that I was able to present to my team and other employees!”

Interns were also able to gain some essential practices through an online etiquette class earlier in the summer. This experience helped them create a memberable public image and to be ready to help build a company’s brand in their careers to come. The students learned polite ways to act on video calls, as well as, dining tips, such as never using your smartphone at the table.

“I learned a ton of things that are never taught or mentioned in everyday life or a class. This class taught me valuable lessons that are crucial to being professional in the business world,” expresses Human Resources intern Erica Drobny.

As the summer ended and GreenStone’s 2020 class of interns returned either to their campuses or personal laptops for online courses, it is apparent they are well-equipped for

the next chapter. Although responsibilities vary, teamwork plays a pivotal and consistent role at GreenStone and the internship program is no exception. Multiple interns continually reiterated that although this internship experience was unique due to the current pandemic, supervisors and coworkers were repeatedly present to lend a helping hand and give some extra direction.

“GreenStone has provided a very welcoming environment, and everybody has helped to make my time here the best that it can possibly be. I enjoy working at GreenStone because of the positive company culture and the way everybody is so encouraging,” summarized David Doyle, a Credit Intern.

Congratulations to the summer 2020 class of interns and best of luck on your future endeavors.

GreenStone is now recruiting for 2021 summer internship opportunities. If you or someone you know may be interested in a collaborative, yet challenging experience, visit greenstonefcs. com/careers. ■

CONGRESSIONAL UPDATE By: U.S. Representative Bill Huizenga (Michigan) As Washington, D.C. heads into the closing months of a year like no other, it is worth reflecting on several critical responses from the 116th Congress. Additionally, I want to discuss items I hope Congress will continue to pursue as we work to tackle the fallout from the worst pandemic in the last hundred years. In order to restore and recover the greatest economic environment in our lifetimes, we must continue to take a bold pro-growth approach.

“

Early efforts by the federal government and ensuing lockdowns at the state level resulted in drastic economic impacts that touched every sector of our once-booming economy. In response to these challenges, I supported and helped pass the CARES Act. This bipartisan bill immediately provided critical relief to Americans, small businesses, and our medical professionals. Under the CARES Act, middle- and low-income taxpayers received up to $1,200 as well as an additional $500 per child. For example, a family in West Michigan with two working adults and two children received up to $3,400 in early direct assistance.

Another critical element the CARES Act addressed was empowering America’s small businesses so they could restart operations as soon as it was safe to do so. The law included an initial $350 billion Paycheck Protection Program (PPP) to support small businesses during the coronavirus outbreak and encouraged small business owners to keep their employees on payroll. Through loans, grants, and tax credits, the PPP allowed more than 4.8 million small business loans resulting in saving an estimated 50 million jobs. This critical program saved 236,000 job in West Michigan alone. As a result, small businesses were able to keep the lights on and more employees were able to receive paychecks instead of battling the unemployment system.

“

As the pandemic progressed, it became apparent to me that Congress can and should do more to protect and thank those who work on our front lines. Whether it is our first responders, medical professionals or those keeping the shelves stocked in grocery stores, each of these individuals have played a critical role during this pandemic.

That is why I introduced H.R. 6433, the Helping Emergency Responders Overcome Emergency Situations Act or HEROES Act. Under this bipartisan bill, first responders, medical professionals and senior caregivers working in a county with at least one COVID-19 patient would be awarded a four-month federal income tax holiday.

Although our markets have stabilized, payrolls are rising, and the unemployment rate is dropping, now more than ever we must continue to focus on ways to lift our economy and help get people back to work. Through my work on the Financial Services Committee, we are committed to creating and fostering an environment that encourages entrepreneurship and innovation and removes the regulatory shackles from our public companies. We must work to improve and expand access to the capital markets, help grow our small businesses, and increase more investment opportunities for Main Street investors. I believe that providing these investors with more choices will help grow both savings and retirement accounts.

As Congress works to overcome the challenges created by the coronavirus pandemic, prioritizing health, safety, and economic opportunity must remain at the forefront of each federal dollar spent. As this tumultuous year winds down, I am confident the federal government can take the necessary steps to restore our economy, lift wages, and increase opportunity for residents in my home district of West Michigan and across the nation. ■

Thank you so much for your sponsorship of the NAADA 2020 Virtual conference. Your generosity helped provide an outstanding conference, and our membership received many quality educational hours. Sponsorship like yours is important to help our association provide these education sessions.

Our members take new ideas to their home institutions after learning from NAADA colleagues. Contributions from our sponsors help us carry out our NAADA mission of advancing agriculture at land-grant universities.

— Renee J. Keese, Ph.D., NAADA President 2018-2020

”

I wanted to send you a short note to thank you and all of the staff at GreenStone for the assistance you provided during the Michigan Agricultural Safety Grant program submission process. I was so impressed with your professional handling of all of our questions and your quick response times to our phone calls. I have completed many grant applications and this was by far the most well organized and smoothly run.... This award means so very much to us and will certainly help us to keep our essential employees protected during this difficult time. Thank you again and know that I greatly appreciate all of your efforts on our behalf.

”

“ “

— With Sincerest Gratitude, Michigan Agriculture Safety Grant Applicant “Thank you for buying my sheep at the MLE Sale-abration. His name was Tom and I had a fun year with him.

”

— Davis Hill

Thank you so much for buying my reserve grand champion lamb at the MLE. I plan on using the money for college and my own sheep farm some day — Kaylee Kasperski

”

...Candid Comments Partners — Fall 2020

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BEHIND THE SCENES– In this behind the scenes, two GreenStone employees share their work and passion to serve GreenStone’s customers by providing crop insurance solutions to meet their needs.

Michael Hagerty Senior Crop Insurance Specialist 12 years of service Little Chute, WI What background do you have that gives you unique passion to assist customers?

I enjoy working with customers to find the right solution/product that meets their individual needs. In my previous role as a credit analyst, it was all about creating and proposing different loan options that would meet the specific credit needs of our customers. The same is true in my role as a crop insurance specialist. I use a very similar process to propose different coverage options that can meet the specific needs of my customers.

What have you seen as the most important factor farmers should consider when purchasing crop insurance?

Breakeven cost / cost of production. This is especially true when looking at coverage through Dairy Revenue Protection. By knowing your cost of production, you can determine what the DRP guarantee price will be covering – be that either a margin or during a downturn minimizing loss.

How has the crop insurance industry changed during your time in the job?

Two big things come to mind, the switch to electronic documents and the growth of Dairy Revenue Protection (DRP) insurance. With all that has happened this year around COVID-19 and how we interact with our customers, much of the crop insurance process that was handled in person is now being handled electronically. Crop insurance renewals and acreage reports that where completed and signed in person are being handled via DocuSign and are now available thru My Access. While crop insurance specialist still meet with customers, they no longer have the physical paperwork and customers have electronic options available.

The second change to crop insurance, DRP, was a new insurance product that became available just as I became a crop insurance specialist two years ago, and has grown significantly since then. DRP allows dairy farmers to insure a quarterly floor price to protect against unexpected declines in milk price. A farmer can insure any amount of milk they produce, so it is

available to all sizes of dairy farms. DRP insurance now covers over 25% of the milk that is produced in the United States.

What do you enjoy doing in your free time?

I enjoy spending time with my family, hiking, backpacking and camping. I also volunteer as a leader for several youth organizations Emily Harke Crop Insurance Specialist 2 years of service Adrian, MI What background do you have that gives you unique passion to assist customers?

I was extremely active in 4-H and FFA growing up, which lead me to pursue a degree in Agricultural Business and Animal Science from Iowa State University. My experience with agriculture growing up, and now assuming the role as a farmer’s wife, has equipped me with the knowledge and understanding of the industry to assist GreenStone customers in protecting themselves against risk in their operations.

What do you suggest is the one factor producers should consider when purchasing crop insurance?

Prices. Crop insurance gives you the ability to lock in a futures price for every crop cycle. These prices help protect producers against a downfall in prices and yield. Crop Insurance is a great way to leverage risk and guarantee an income that can abstain adverse conditions.

How has the crop insurance industry changed during your time at GreenStone?

Crop Insurance is constantly adapting to the needs of the producers. There is a crop insurance plan that fits every farming operations’ unique needs. From livestock to apples, sugar beets to dairy, corn to nurseries – crop insurance insures almost all commodities grown in the state of Michigan. Beyond that, whether you’re looking for a baseline disaster policy or a policy with special pricing options, we have something that works for you.

What do you enjoy doing in your free time?

In my free time I enjoy boating, decorating and helping my husband on our family farm. ■

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GROW FORWARD GRANT PROGRAM With today’s ever-changing and fiercely competitive market, getting started in the agriculture industry can be overwhelmingly challenging. However, the future of agriculture depends on the next generation of farmers and their ability to continue feeding the world.

In part, that’s why GreenStone believes in offering young, beginning and small farmers financial assistance to overcome the challenges.

Through GreenStone’s Grow Froward Grant, young, beginning and small farmers are able to strengthen their business, expand their knowledge and better manage their farm. Again this year, the program provides up to $40,000 in grants to offset costs and promote the success of young, beginning and small farmers. Current GreenStone customers are eligible for up to $1,000 each year and non-GreenStone customers can receive up to $500 per year.

Intended grant use must align with one of the following categories:

To be eligible for a Grow Forward Grant,

• Agricultural programs/events: educational course/program (on-site or online), conference fees, etc.

• Must be a 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 • Must be eligible to be a member of GreenStone, residing in Michigan or northeast Wisconsin

• GreenStone resources: first time use of accounting and tax services, technology support, etc.

• Non-GreenStone services: business and farm consultants, etc.

Apply Now! GreenStone looks forward to helping many young, beginning and small farmers navigate their farm journey. For more details on the grant or to apply, visit www.greenstonefcs.com/ybsf. ■

Mark Your Calendar...

OCTOBER

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Beekeeping Crop Insurance Webinar 6:30-7:30 p.m. EST Free webinar. To register email: Phillip.Preston@greenstonefcs.com.

NOVEMBER

4

Michigan Farm Bureau Annual Meeting (Nov. 4 - Dec. 2) Virtual conference

4 26

Wisconsin Farm Bureau Young Farmer and Agriculturist Conference (4-6) Virtual conference GreenStone Offices Closed (26-27) In honor of Thanksgiving

DECEMBER

5

8 24

Great Lakes Fruit, Vegetable and Farm Market Expo/Michigan Greenhouse Growers Expo (8-10) Virtual conference GreenStone Offices Closed (24-25) In honor of Christmas

JANUARY

Wisconsin Farm Bureau Annual Meeting (5-6)

1

GreenStone Offices Closed In Honor of the New Year Partners — Fall 2020

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The GreenStone Story:

Banking Solutions & Communication Tools Country Living Specialization

GreenStone’s rich heritage is connected to those with a passion for rural living. Our customers can count on our expertise in rural lending to provide the best financing possible for a dream home in the country.

Specializing in rural homes, vacant land and small farms, GreenStone also leverages decades of experience in home construction financing to make any rural property financing process smooth and easy for our members.

Managing your home loan, vacant land loan, or your contracted or DIY construction loan with GreenStone’s online banking and money management tools gives you flexible access to your funds and keeps your payments organized, on-time and within your budget.

Agriculture Experience

Weather, regulations, market fluctuations, global pandemic…there are many influences on an operations’ bottom line that are completely outside of a farmer’s control. GreenStone understands this, and has dedicated the last 104 years to building the kind of support into its lending practices that allows farmers to roll with challenges while working towards success.

Partnering with GreenStone puts farmers back in the tractor seat, with accessible, time-saving technologies and money-saving loan management tools. These efficiencies contribute to running a farm based on banking, loan and communication choices that are best for each individual operation, giving farmers and producers more personal control over their businesses.

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Our appreciation for our agricultural customers, our gratitude for the work they do, and our understanding of what farmers need to protect and grow their operations is an impetus for all of the products we develop.

Updated Convenience

In our continuing effort to make managing finances more seamlessly convenient for our customers, GreenStone launched a new online banking platform within My Access on October 13. While the new system will allow more intuitive navigation, convenient new options and enhanced security features, the benefits of our Farm Cash Management and Funds Held accounts go a step further with interest accrual and fluid transfer of funds.

Money-saving Loan Management Tools

Farm Cash Management (FCM) and Funds Held (FH) accounts help GreenStone customers manage their financing, while offering interest accrual on money that customers deposit within each account.

Funds Held

A Funds Held account can be added on to many loans through GreenStone. This interest accruing account offers a rate of three percent less than the interest rate on the loan. While earning interest, it’s an effective tool that allows customers to earmark funds for future property taxes, insurance bills, or payments without using an escrow or losing interest on the funds designated for payment. Regardless how a customer’s loan payment plan is established - annual, semi-annual, quarterly, monthly or bi-monthly – customers maintain 24/7 access to monitor the amount of cash in their Funds Held account online, allowing

them to add funds as necessary, and have peace of mind knowing their loan payment will be automatically pulled on the scheduled date(s). The customer manages the account, and their money is often earning far more in Funds Held than it would earn sitting in a checking account.

Farm Cash Management

Farm Cash Management (FCM) is a tool that can be tied to a revolving line of credit, allowing members to place excess cash into their FCM account and earn interest when the revolving line of credit funds are not needed. Integrating your operating loan with this short-term investment account gives you the dual benefit of easy access to operating funds while accruing interest and ultimately reducing interest costs on the loan. A FCM account is tied to a customer’s operating loan and its draft checks; when money is drawn, the funds will be pulled from the balance in the FCM account before advancing funds from your revolving line of credit - it is a business convenience tying money management and farm operations to one multipurpose account. Interest rates fluctuate; however the time-saving, bill-paying efficiencies of FCM make this account a benefit for all farms.

GreenStone recognizes the scope of our responsibility to our customers, in-person and online. Our mission is “to support our rural communities and agriculture with reliable, consistent credit and financial services, today and tomorrow”.

We believe this includes working diligently to improve our technology and cyber-security, along with our continued dedication to serving all our customers safely and effectively.

My Access

Need to schedule a loan payment?

Deposit checks or transfer funds?

Funds Held: Interest earned on funds in Fund Held; peace-of-mind auto-payments; may be monitored or managed online from anywhere!

Monitor account balances? Sign and send a secure financial document?

Set up custom alerts to keep your payments on track?

My Access is a secure, personalized online portal that combines access to GreenStone’s online banking offerings with a series of value added tools. Through the single, secure login, customers can monitor loan accounts and perform a variety of time-saving tasks: • Online Banking: The newly upgraded system allows you to manage your accounts 24 hours a day, view account history, details and drafts, transfer funds, and schedule payments. In addition, you can also access your information from our convenient app, available in the App and Google Play stores.

• File Exchange: A safe, two-way communication tool where documents can be sent and received securely between you and GreenStone staff members. Emails from personal accounts can be hacked and breached; the encryption enabled by File Exchange is a vital step in protecting your financial documents and loan accounts.

• My Documents: View and download your specific documents GreenStone has securely stored, and access and print bills and statements.

• My Alerts: Take control and establish custom alerts to be sent to any email or mobile number you desire.

• My Profile: Easily manage your email address, password, security questions, authentication image and phrase, and sign up for paperless bills and statements.

My Access: Convenience; speed; privacy and security.

Improving the depth, security and convenience of our online services has never been so important. With changes imposed by the coronavirus, we are pleased to have the technology infrastructure in place to efficiently provide all customer services online, and will continue to provide streamlined, state-of-theart service while maintaining the security and privacy of our customers’ information.

Farm Cash Management: Interest earned on funds in FCM; one-stop operating account; customer has control over deposits and withdrawals; may be monitored or managed online from anywhere!

We acknowledge the steep technology learning curvce many of our customers underwent this past year, and we deeply appreciate our customers’ persistence and loyalty. Going forward, GreenStone will continue to provide solutions to give our customers more options and control over their finances, which lead to more time in the barn, woods and field! ■

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Directors’ Perspective :

Planning, Prioritizing, and Outlook THESE DIRECTORS STARTED OUT THE YEAR WITH PLANS TO INSPIRE, GROW AND IMPROVE THEIR PERSONAL LIFE AND BUSINESS. LOOKING BACK, AND CONSIDERING WHAT EAGERLY LIES AHEAD, THEY SHARE THEIR PERSPECTIVE ON THE REALITIES OF 2020, HOW THEY ADJUSTED THEIR PLANS, AND WHAT THEY ARE EXCITED TO HAVE EXPERIENCED AND BE LOOKING AHEAD TO AT GREENSTONE. Bruce Lewis

In a time with so much turmoil in society and many things out of our control, we have tried focusing on small changes on our farm. From working to improve cropping practices (i.e. fertilizer placement, ground prep, etc.), to improving technology use in our dairy herd (locating sick animals earlier and improved heat detection), to higher quality forages resulting in higher component values in our milk, and better milk cooling.

Two years ago we began marketing beef to the public, as we felt the need to diversify our income sources. We have been inspired by the consumers desire to get to know us, presenting countless educational opportunities.

So we have focused on the smaller goals for the year, working on production improvements in the field and in the barn.

As a member of the GreenStone Board, I’ve been able to see how continually working on the smaller details helps to build a stronger foundation for the business – this is what GreenStone has focused a lot of time, and where we are focused on my farm too.

View Bruce Lewis’s profile video: www.greenstonefcs.com/BruceLewis

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Ron Lucas

Looking back on the last year – wow, what an eye opener! A true testament that we never know what tomorrow will bring! The year started with good farm prices for milk and quickly changed with Covid 19. My family has been blessed through this time with good health as essential workers. Our three sons, their spouses and our nine grandchildren, live within three miles of the family, so we get to see them regularly.

The growing season has been one of the best in our area, our crops all have been bountiful! Unfortunately, while harvesting in July, I had an accident requiring surgery on my hand, and three months of recovery. Experiences like that makes you stop and think how quickly your life can change those things that you take for granted. Life goes on with everyone stepping up.

Fortunately, I know the farm is in good hands and will continue for the next generation with dedicated hard work and GreenStone’s partnership.

handling of the Covid 19 crisis.

Members were able to safely access their accounts with ease and continue their operations.

Life changes can be instantaneous.

That’s why it’s important for all our members to know the GreenStone Board of Directors has made sure that management has all the right people in place to manage any crisis.

View Ron Lucas’s profile video: www.greenstonefcs.com/RonLucas

As a Director, l am proud of our GreenStone staff and managements’

Scott Roggenbuck

When I was younger I planned differently, the farm was smaller and my focus was on growing the business to a scale that would support multiple families. Now I plan for sustainability and making sure the next generation has the tools and skills to carry on the job my father and grandfather have started. I am proud of my brothers and my son and feel confident in the future of the farm.

Our priorities going forward are to weather the downturn in the ag industry and stay healthy so as to be ready to take advantage of the next opportunity that presents itself.

My experience on the board has taught me that it is vitally important to not let change happen without me. I have witnessed situations where people couldn’t make the difficult decisions that could ultimately save the farm. That might mean letting go of some assets, or giving up control of certain management roles. Change happens, it isn’t always fun, sometimes we have to swallow our pride.

Don’t lose focus, stay strong, have faith, life is good.

View Scott Roggenbuck’s profile video: www.greenstonefcs.com/ScottRoggenbuck

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Legislative Matters:

THE FUTURE OF AGRICULTURE AND THE INVASION OF TECHNOLOGY– WHAT’S IN THE MIXTURE? THERE IS A TREMENDOUS AMOUNT OF ENTREPRENEURIAL SPIRIT IN A FARMER. IT IS IN THEIR DNA FROM BIRTH. MOST FARM FAMILIES HAVE ENDEAVORED TO OVERCOME THE MARKET OR SEASON LOWS AND HAVE LIVED TO FIGHT ANOTHER DAY TO LATER FEAST ON THE HIGHS OF A GREAT CROP OR MARKET. THERE HAVE BEEN COUNTLESS WAYS THAT HAVE BEEN INVENTED TO MAKE FARMING MORE EFFICIENT AND SUCCESSFUL OVER MANY YEARS AND WITHIN A GENERATION. Reflecting on the application of technology in every aspect of agriculture…ponder these, to name a few: Farmer wellness is critical.

Managing risks of farming creates stress and anxiety, and no matter the strength of self-reliance and perseverance, it is a challenge to overcome.

Telemedicine with the growth of broadband has demonstrated a key use of that technology.

More access to broadband is necessary, for no other reason than connecting to health solutions. There are of course many other reasons to work toward connectivity.

Now the changes are coming even faster in all sorts of dynamic ways for both small and large operations. It is that entrepreneurial spirit that leads the charge of overcoming any challenge to make the farm successful. Those farms that keep a mindful eye on the technology changes, then weigh and measure the impacts of adoption, may enjoy a leg up on individual competitors.

But there is an even bigger picture. The United States leads world innovation as a whole, 25

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which makes our country the world leader in agriculture.

The existence of an innovative environment, coupled with entrepreneurial spirit, will keep the agricultural economy strong for the next generation. To create the best environment for all of this to come together, requires the right blend of individuals, science, policy and industry will power. All ingredients are necessary to accomplish great change and results. Technology applied to each of these ingredients will make a big difference.

Stewardship of the environment to reduce greenhouse gases and maintain advanced waste management practices is one of those renewable topics that will not go away. Agriculture in the United States has never forgotten the environment and leads the world in technology adoption in this area. It may be solar on the farm, conservation easements, or treatment of soil containments, the farmer has always looked for the adoption of technology to improve not only the business bottom-line, but the environmental rewards.

Genetic mapping to strengthen a commodity for production and consumer safety has not been without volumes of scientific study. The discussion will be ongoing due to a

variety of threats to the food system. Beside the gene, there is blockchain development for food ingredient traceability.

The consumer requires whatever technology adoption that will continue to support their ability to rely on the safety of the food system. The United States has led the discussion.

Whether an individual farmer favors being an enterprise business builder or an independent inventor/adopter of technology, both play a gigantic role in the future of agriculture. Both will lead younger and innovative farmers into the growing need to do this important work of feeding a nation.

This accentuates yet another challenge where technology plays a role in the future of agriculture, which is to address the challenges of labor. While there is a vast amount of familiarity of the need for a strong H2-A program, robotics continues to advance and be applied to agriculture. Robotics has found its way into more and more production facilities.

These advanced production tools will make agriculture more interesting to the farmers of the future.

All these technology applications require sound policy to empower these technologies, and to get these policies in place. We all need good policy leaders that will listen to our farmers voices. These voices must remain amplified as they are yet another key ingredient in the mixture for the successful future of agriculture as technology advances. ■

PAC Progress:

PACS: AN EXPERIMENT WITHIN DEMOCRACY The United States government has been called a great experiment in democracy, and since 1776 the political structure has been evolving with the times and citizens of the Nation. One of these alterations was the introduction of PACs in 1944 by the Congress of Industrial Organizations. This PAC worked to raise funds and assist in the reelection of President Franklin D. Roosevelt. Since this introduction there have been calls for regulation resulting in the Federal Election Campaign Act of 1971, as well as later legislation and amendments.

So, what is a PAC and how does it work? In U.S. politics, PAC is short for Political Action Committee. It is an organization whose purpose is to raise and distribute funds within the established political process.

These organizations are formed from a wide variety of interests: individuals to trade association customers to corporation employees. Each with a goal of channeling voluntary contributions from individuals to candidates, or messages expressly taking a position on electing or defeating a candidate.

Today, there are thousands of PACs involved in the political process and each one is bringing together financial support from individuals with common interests.

This collective strength is a powerful force that goes a long way. In fact,

this collective strength idea is a core principal of cooperatives and is a driving force in GreenStone’s engagement in PACs. At GreenStone, the efforts are dedicated to collecting voluntary contributions and disbursing funds directly to individual candidates. To date, at the direction of the Board of Directors, GreenStone has not been involved in expressly taking positions on candidates through direct messaging or endorsements. Instead, focus is placed on providing direct financial support to elected officials that have demonstrated support for rural communities, agriculture, and Farm Credit.

This is accomplished through three PACs: Farm Credit PAC, MI GreenStone PAC, and WI Farm Credit PAC. The Farm Credit PAC is governed by elected Farm Credit individuals from across the U.S., including one from GreenStone. Financial support for the Farm Credit PAC is your board directors and employees, and those funds are dedicated to members of the U.S. Congress.

The MI GreenStone PAC and WI Farm Credit PAC are governed by the GreenStone Board of Directors Legislative/Public Policy Committee. Financial resources for these PACs come from you – the cooperative members in Michigan and Wisconsin – and are directed to the state legislative members.

GreenStone is privileged to have involved directors, employees, and customers in the PAC process. For rural communities and agriculture, PACs have allowed for public demonstration of widespread engagement that could have otherwise gone unnoticed and been taken for granted. What an honor it is to be a part of the experiment that hears our individual voices and allows us to gather collectively to echo our desire for the growth of rural communities and agriculture! ■

While the normal process of interacting with elected officials was different this Spring and early Summer, contact is being made with elected officials and financial support continues to be distributed.

GreenStone’s legislative engagement team continues to deliver the message that rural communities and agriculture are essential parts of the country and are worthy of appreciation and support.

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LIVE

Every Hunter’s Dream TERRY MAYNARD AND HIS SON, AUSTIN, WERE TIRED OF HUNTING ON OTHER PEOPLE’S PROPERTY. THEY WERE TIRED OF GETTING UP EARLY TO DRIVE HOURS TO ACCESS LAND WHERE THEY WERE LIKELY TO RUN INTO LARGE GROUPS OF PEOPLE, UNSAFE HUNTING PRACTICES AND TEMPORARY DEER BLINDS.

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➡ Opposite page: Tired of hunting on other people’s property, Terry and Austin Maynard purchased 92 acres of privacy and built a permanent deer blind. ➡ Right: Austin and Jessica Maynard obtained a DIY construction loan from GreenStone and made their build a family project.

That’s why three years ago Terry and Austin bought 92 acres of recreational land in Parma, Michigan with a country living loan through GreenStone Farm Credit Services, and realized every hunter’s dream.

“If it’s 7:30 a.m. and I decide I want to go hunting, I can just walk out back and I can go hunt,” says Terry. “I don’t have to load up the truck and walk miles in the dark to get to a tree stand.”

“I can shoot targets off my back porch and nobody is questioning me,” adds Austin, who built a home on the property last year with hands-on help from his dad and a GreenStone construction loan.

Knowing it would be theirs for years to come, father and son also built themselves a permanent deer blind with lots of space and windows that slide open.

“We’d put a recliner in there,” Terry jokes, “but we didn’t make the door big enough!”

Once the Maynard’s had scouted out their perfect property, financing their country living rec land loan with GreenStone Financial Services Officer Deborah Teller was easy. They provided tax returns, pay stubs and a down payment, and officially became land-owners after signing paperwork at the title company.

“Our recreational land financing is available to individual buyers as well as multiple buyers, and even for those who form an official business group,” says Deborah. “We not only finance the construction of homes on rec land, we also finance barns and other improvements. Both options have highly competitive rates. Some think of rec land financing just for hunting, but I have closed transactions where the entire family was at closing and excited to have a place to hunt, cross country ski, camp and fish.”

Building a home Austin and his wife Jessica are parents to a three-year old and a nine-month-old baby, and knew they would be settling their family in a custom built home on the property. The recreational acreage had been chosen, in part, because of its proximity to a favored school district.

Deborah was ready with construction loan information once Austin was ready to build. GreenStone finances do-it-yourself construction loans, and the process requires some careful planning.

“We had to submit blueprints and a budget,” recalls Austin.

“We had quotes for materials and contract work, and we had to turn in lien waivers and sworn statements for each draw request. I would turn it all in to the title company and to

➡ Above: Terry Maynard has always hunted together with his son, Austin. Now they are able to hunt together on their own property.

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i COUNTRY LIVING – OPEN FIELDS BLOG BRIEF GreenStone publishes regular updates on our Open Fields blog about current events, community engagement, tips for country living homeowners, advice on financing your own outdoor retreat and more. Check out some of the posts you may have missed at www.greenstonefcs.com/openfieldsblog

GreenStone Employees Recall Favorite Hunting Spots in Michigan Deborah, and within two to three days the money would be in our account.

We would make draws on the account to write checks to our suppliers and contractors.

“The hardest thing about building a house and getting the construction loan is you basically have to determine what you want from the start. You have to know what flooring you’re going to install, what cabinets you’re going to plug in, what tile you’re going to use.

Before you can get approved for the loan, you have to show GreenStone that you have a plan.”

Having GreenStone hold him to a budget gave Austin sound financial direction; he admits it is incredibly easy to fall into the trap of spending extra money on ‘upgrades’ while in the middle of construction. Except for cement work, plumbing, heating and drywalling, Austin and Terry did much of the work themselves. The Maynards are proud they were able to bring the house in under budget, and finish it in one year.

It was a year that Austin and Jessica spent living in Dad’s basement with a new baby, but Terry is planning his own future DIY home project on the

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➡ Above: Jessica and Austin Maynard and their two children proudly stand on the porch of their new home, with co-builder Terry Maynard.

property, and he knows that his son and daughter-in-law will be his willing build partners. Terry also knows he has a partner at GreenStone; Deborah’s responsiveness helped save Austin nearly $20,000 during his build when hurricane destruction in Florida caused the price of lumber to skyrocket.

“It was rewarding to work with Austin and Terry,” Deborah reflects. “First, on their dream hunting ground, and second, helping Austin build a home for his family. The Maynards both worked hard to come in under budget for the home build and their hard work paid off.”

It’s been a busy three years for the Maynards, but they are pleased their planning and hard work is making home and hunting possible under the best circumstances for their family.

“The rec land is ideal. We are away from everybody and we never get bothered,” says Austin.

“My son and I have always hunted together,” Terry adds. “Now we’re able to hunt together on our own property.” ■

Learn more about Colton Vrable, Mark Klett, and Joseph Hickey’s ideal hunting locations and the memories affiliated! ■ Michigan Livestock Expo and the GreenStone Family Kaylee Kasperski, daughter of a GreenStone financial services officer, earned quite the list of accomplishments at the recent Michigan Livestock Expo. ■ Country Minute: Making Recreational Land Affordable Camping, hiking, hunting, fishing, ATV-ing! Your GreenStone financial services officer can help you explore all of your financing options for a recreational land loan. ■ Your Flowers have Dried Up...

Now What?

When asked what to do with dried up flowers, experts Jeremy Jubenville and Isabel Branstrom were more than happy to provide loads of advice. ■

‘TIS THE [DEER] SEASON!

By Jimmy Gretzinger, host of Michigan Out-of-Doors TV EVERY YEAR THERE IS A DAY WHERE FALL SHOWS UP. OF COURSE, THERE IS THE ACTUAL FIRST DAY OF FALL, BUT FOR ME – IT HAPPENS ON ITS OWN, AND THIS YEAR IT WAS A FEW WEEKS BEFORE THE OFFICIAL START OF THE SEASON. THERE WAS A COOLNESS TO THE AIR THAT HADN’T BEEN FELT IN A LONG TIME. MOST OF THE LEAVES WERE STILL GREEN AS I LOOKED AROUND, BUT IF I REALLY LOOKED HARD, I COULD SEE A FEW RED ONES TURNING AS WELL. FOR ME AND FOR SO MANY HUNTERS ACROSS THE MIDWEST, THE FALL MEANS – DEER SEASON! The thought of opening day brings back so many memories, and at the same time it holds such anticipation. Opening day of the firearm season is the big one! However, opening day of the archery season holds a very close second. For many families, the early youth season has a similar attraction as well.

No matter what season or location you’re hunting in, the anticipation and preparation is part of the fun! Well before fall there are plans being made. Weekends are carved out on the calendar. Bows are out of the case and arrows are sent down range. Backpacks are found and gone through with a fine-tooth comb. The binoculars that you always mean to replace are cleaned off and ready for another season. Scopes on rifles are sighted in. If any venison from last year still exists, it’s time for that final batch of jerky to be made for the trip to deer camp that is right around the corner.

Deer season in all its forms has something for everyone.

There are the hardcore hunters that have been watching their trail cams all spring and have every buck named.

Their hit list is made, and every possible wind direction has a stand that is perfectly thought through. There is also room for the casual deer hunter who, due to age or time restraints, has moved away from more traditional archery gear and chooses a crossbow. This tool has taken many hunters back to the woods in October. There is also the hunter who only goes to deer camp with family and friends, and his or her only goal is to have a good time!

The beauty of the fall, and the beauty of deer season, is that it is here for a short time and we need to enjoy every day we have. 2020 has been a year like no other. This year has taught us many things: Family matters. Friends matter. Life is shorter than we think. Live well. Love more.

So, with fall on the horizon and deer seasons getting underway, let’s make sure that this season we make more of an effort to spend time with those we care about.

Make sure deer camp happens.

“We have only so many sunrises in our life, it would be a shame to waste even one. “ That quote hangs on the wall in the deer camp I grew up in; I love the message and I think about it often.

2020 may have changed a lot of things, but hey, it’s deer season! Get in the woods!

Oh, and make sure you wash your hands.

Find detailed information about our indoor and outdoor suggestions on the websites serving Pure Michigan and Travel Wisconsin: www.michigan.org/destination-finder and www.travelwisconsin.com/family-getaways. ■

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3-STEP PREP FOR LAWN AND GARDEN SUCCESS NEXT SPRING YOU DO NOT HAVE TO BE A MASTER GARDENER OR TURF SPECIALIST TO PREP YOUR LAWN AND GARDEN NOW FOR GREEN SUCCESS NEXT SPRING. If you are a lawn and garden hobbyist, you likely have your own fall routine, but for the rest of us, the basic preparation process is pretty straightforward and can be broken down into three basic steps.

Some gardeners choose to grow a fall cover crop to add extra nutrients to the soil. Sweet clovers, barley, wheat and oat are typical examples of cover crops used to replenish vegetable gardens.

Lawn

Flower Garden

Mow. As long as your grass is growing tall, continue to mow, leaving it 3-3 ½ inches high. Mowing grass down to its roots leaves it vulnerable to winter weather.

Preparing a flower garden for the winter is very similar to the steps taken to ensure a vegetable garden is ready for next season’s planting. You may wish to remove the dead flower heads from perennial plants (unless you are letting birds feast on the seeds), and watering perennials throughout the fall will give them a boost next spring.

Mulch. Leave the grass clippings on the lawn after mowing (as long as the clippings don’t completely cover the grass). Grass clippings are a good source of nitrogen, which is a fertilizing agent. Fallen leaves should either be removed completely, or shredded and mulched.

Fertilize. You thought you were done for the season? One last fertilizer application will protect your lawn over the winter by leaving your grass with protective nutrients.

Vegetable Garden

Without getting fancy, the simple steps you take the time to do now will save you time and money trying to revive your grass and garden in May. For more detailed information, review the expert horticulture advice offered through Michigan State University and University of Wisconsin: Michigan State University Extension

Weed. Remove all of the weeds, which may foster insects you don’t want wintering in your garden bed.

www.canr.msu.edu/news/got-lawn-and-garden-questions-contact-msuextension-s-free-hotline

Till. Turn up the soil to keep it oxygenated.

University of Wisconsin-Madison Horticulture Extension

Fertilize. Adding organic matter (compost or livestock manure) to the soil now will give you a fertile garden bed that is ready to grow plants next spring.

www.hort.extension.wisc.edu ■

DRYING GARDEN BLOOMS FOR A WINTER BOUQUET • When selecting flowers for dry arrangements, choose stems that are almost in full bloom.

• Strip off most of the lower leaves, arrange them in small bunches, and hang them upside down in a dry place with good ventilation. Attics and barns are traditional locations for drying plants because they’re warm, dry, well-ventilated, and out of the sun. It may take 3-4 weeks for the flowers to dry.

• The most successful dried bouquets are created with flowers that have relatively low moisture content: Celosia, Gomphrena, Strawflower, Bells of Ireland, Hydrangea, Amaranthus, Delphinium and ornamental grasses.

• With care, dry bouquets can last a year or longer. ■ 31

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BUILD YOUR PERSONAL IMMUNE SYSTEM WITH MANY INDIVIDUALS SPENDING MORE TIME AT HOME, AWARENESS OF PERSONAL HEALTH IS A TIMELY SEASONAL FOCUS. Keeping our immune systems strong is imperative in fighting off colds, flu and COVID-19. Making time for at least 30 minutes of physical activity every day and eating super foods with high levels of vitamin C are just two easy lifestyle shifts we can all schedule into our lives. Follow these additional quick tips to put your health first: • W ash your hands frequently. COVID-19 has been present for months now, and there have been dozens of articles released on the most effective way to wash your hands. Within these articles, it is commonly reiterated to lather up your hands with soap and water and wash regularly for 20 seconds, specifically after blowing your nose, coughing, sneezing, feeding your pet, caring for a sick person, using the bathroom, and before preparing/eating food.

• M inimize stress. Research makes it apparent that people with high stress typically have low white blood cell counts. This triggers these individuals to be more susceptible to catching illnesses such as the cold, flu, or the dreaded coronavirus. Meditating, exercising, drinking tea, and getting adequate sleep are common methods proven to reduce stress and boost the immune system.

• D rink alcohol in moderation. Studies show that drinking heavily on a regular basis causes the body to be less likely to fight off infections.

Keep your immune system strong and be cautious with the levels of alcohol you consume.

• A void smoking. Smoking can negatively affect the heart, lungs, and body. Light smoking, or social smoking can lead to several side effects, such as heart disease, lung cancer, cataracts, and aortic aneurysms. Prioritize your health and cut smoking.

• A dopt healthy habits. A healthy immune system needs an abundance of nutrients to keep it running. Incorporate plenty of fruits and vegetables into your diet to not only provide the fuel, but to help in maintaining a healthy weight. Establish an exercise routine that fits your individual life can also contribute to an overall healthy body, which is necessary for a strong immune system.

Taking care of your body will increase your chances of staying healthy in both the short and long run. Put yourself first in this unprecedented time, use your ‘home time’ to better your lifestyle habits, and encourage your friends and family to follow in your footsteps! ■ RESOURCES: https://www.health.harvard.edu/newsletter_article/light-and-socialsmoking-carry-cardiovascular-risks https://www.health.harvard.edu/how-to-prevent-infections https://pubmed.ncbi.nlm.nih.gov/17922947/ https://www.health.harvard.edu/staying-healthy/how-to-boost-yourimmune-system https://thehealthychef.com/blogs/wellbeing/how-to-reduce-stress-healyour-immune-system

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Commodity Cuisine...

Bernadine’s Fresh Cherry Pie What could be better than a fresh cherry pie, with fruit harvested from a local Michigan or Wisconsin orchard? Bernadine Gallagher, matriarch of Gallagher Farms in Leelanau County, shares her family favorite – a tart cherry pie that is both quick and easy, and a huge hit at holiday dinners.

Pie Crust Makes two 10-inch pie crusts: 2 2/3 cups All-Purpose flour 1 1/2 teaspoon salt 1/4 cup oil 4-5 tablespoons cold water TIP: Refrigerating the balls of dough before rolling them out makes the dough much easier to flatten.

Pie Filling Mix the following: • 1 cup sugar • 2 tablespoons cornstarch • 1 teaspoon vanilla • Add 4 cups pitted fresh (not canned) tart cherries* *You can use a variety of sweet and tart cherries. If you use all sweet cherries, decrease sugar by 1/3. You do not need to precook cherry filling or add water if you use fresh cherries.

TIP: Using a cherry pitter is very helpful!

Directions: • Measure flour and salt; add oil and mix until particles are size of peas.

• Sprinkle with water.

• Mix until flour is moistened and dough clears side of bowl.

• Press flour into two balls, cover with cling wrap and roll out flat.

• Place one crust in 9-inch pie dish, add pie filling and cover with second crust.

• Pinch the edges to join crusts and add a slit in the cover crust to vent.

• Bake at 400 degrees on a cookie sheet or tinfoil until brown (about 45-50 minutes). Cover the top of the pie with tinfoil after 20 minutes to prevent over-browning.

• Enjoy! ■

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LEARN

i PROTECTING YOUR EMAIL ACCOUNT

According to the FBI’s 2019 Internet Crime Compliant Center (IC3) report – “the IC3 received 467,361 complaints – an average of 1,300 complaints every day – and recorded more that $35 billion in losses to individuals and business victims. Of them, 23,775 complaints where related to email compromises which resulted in a total of $1.7 billion in losses.” – (Federal Bureau of Investigation, 2020).

Cyber-criminals continue to target emails because it is easy, and users continue to fall prey to their malicious tactics.

Thankfully, there are signs when someone is accessing your email account and there are also ways to regain control of it.

Signs your email account is compromised: • U nable to login – if you lost your ability to login to your account, this could be a sign that someone has gained unauthorized access to your account.

• S uspicious sent items and email rules – most attackers want to borrow your email account to intercept password reset emails to attempt to gain access to financial accounts, or to send phishing emails to your contacts to gain access to their email accounts. Looking for suspicious sent items and inbox rules will help identify these methods.

Protecting your accounts: • C hange your password – if you think your email account has been compromised, changing your password will begin the process to stop the unauthorized individual from accessing this account.

• E nable multi-factor authentication to your email account – most email providers (Outlook, Gmail, Yahoo) offer these additional security controls. Enabling multifactor is one of the best ways to protect your account. The cyber-criminal might have your password; however, they do not have your multifactor device.

Once you regain control of your email account, let friends and family know that your email account might have been compromised, as they too may need to protect their email accounts.

References: Federal Bureau of Investigation. (2020, 02 11). 2019 Internet Crime Report Released . Retrieved from FBI: https://www.fbi.gov/ news/stories/2019-internet-crime-report-released-021120 ■

...Tech Tip

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CROP INSURANCE NEWS:

APH REVIEWS The Risk Management Agency (RMA) threshold for an Actual Production History (APH) policy review is $200,000. Given the weather conditions areas of the country experienced this year, it is likely many producers could meet or exceed this amount. An APH policy review is simply the process of verifying the accuracy of the insured reported production, share and acres. Accurate and complete records will simplify the process, along with following these guidelines: • P roduction records must be separated by crop, practice, type, unit and the actual crop year.

•R ecords must be sorted by the 578 producer prints, settlement sheets and soft records.

• The insured must keep three years of production records.

• Daily livestock feeding should be recorded.

• P rinted combine monitor records should be stored with settlement sheets.

• T he insured cannot split truckloads, tickets and bins between units without proper soft records for comingled production.

•C o-mingled production needs to be measured by a disinterested third party.

• T he insured should keep original records and provide the Approved Insurance Providers (AIP) with copies.

Hard records are production records that prove the final disposition of the total crop and are verifiable by a third party. Soft records are the documents an insured must provide if production is separated by unit, practice, type or variety. Soft records must include all units; missing or incomplete soft records may result in comingled production and the loss of optional units. This may result in a lower guarantee.

If you think you will be submitting a claim that will be above the $200,000 threshold, please contact your agent to begin the APH Review process. Most claims will not be paid until the review is completed. The earlier the process begins, the earlier a claim can be paid. For more details, please contact your local GreenStone crop insurance specialist. ■

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APPLE REMINDERS— November 20, 2020 is the sales closing deadline to change your current coverage or take out a new policy for the 2021 crop year. Premiums are not billed to you until August 15, 2021 and are due September 30. Your current coverage will carry over for 2021 if you do not change anything in writing by November 20.

January 15 is the acreage and yield reporting deadline for fruit. PLEASE REPORT ACRES AND PRODUCTION AS EARLY AS POSSIBLE! The County Transitional Yield (T-Yield) and 2021 prices have been recently announced. That information will be included in your renewal information later this year, or you can contact your crop insurance specialist for more details. ■

COVID-19 ADDITIONAL DEFERRAL OF INTEREST CHARGES AIPs are authorized to provide additional time for policyholders to make payment of premium and administrative fees. Interest accrual on premium payments and administrativem fees will be waived to the earliest of an additional 60 days of the scheduled payment due date or the termination date on policies with premium billing dates between August 1, 2020, and September 30, 2020. AIPs will begin to accrue interest after this additional period for unpaid premium and administrative fees.

AIPs are also authorized to provide additional time for policyholders to make payment for Written Payment Agreements due between August 1, 2020, and September 30, 2020.

Payments may be extended up to 60 days of the scheduled payment due date and considered a timely payment. Such extension of time will not be considered a modification of the Written Payment Agreement, and the AIP may waive any additional interest for the

payment during this 60-day period. Payments are applied as follows: A) any unpaid finance or interest charge, B) unpaid administrative fees, and C) unpaid premiums. Please keep in mind that accrued interest on uncollected premium is attached, according with the terms of the Standard Reinsurance Agreement, and CANNOT be waived by the agent or AIP. ■ END OF INSURANCE PERIOD Insurance ends on each unit or part of unit at the earliest of: • Total destruction of the crop

losses must be submitted no later than 45 days after release of Harvest Price. ■ CO-MINGLED PRODUCTION Please be aware that any production from 2019 being carried over into the 2020 harvest needs to be measured or marked by an adjuster prior to adding the current year’s production. Added production needs to be kept separate by unit through bin markings.

If you need a bin measurement, call your crop insurance specialist. ■

• Harvest

ACREAGE & PRODUCTION REPORTS

• Final adjustment of loss

It is the customer’s responsibility to report the crop that was planted in each section, the planting date, the percent share of that crop and the quantity harvested. Reporting your crop accurately and double checking everything is very important.

Corrections or changes cannot be made after the reporting deadline. If you have any questions or would like assistance, just contact your local GreenStone crop insurance team. ■

•A pplicable calendar date in the crop or special provisions • Abandonment • Or, as otherwise specified in the Crop Provisions Provisions require a Notice of Loss (NOL) within 72 hours of damage discovery but not later than 15 days after the end of insurance period. Revenue

Crop Insurance Calendar...

OCTOBER

15

Forage Underwriting Report Signature Due Date

25

DECEMBER

NOVEMBER

5

End of Insurance Period (loss reporting deadline) for Apples

10

Wheat Final Plant Date*

14

Wheat Production Reports Due

JANUARY

31

End of Insurance Period (loss reporting deadline) for Fall Crops

15

Wheat & Forage Acreage Reports Due

31

Final Claim Reporting Date for Dry Beans

15

Final Claim Reporting Date for Sugar Beets

20

Fruit Sales Close Date & End of Insurance Period for Grapes

15

End of Insurance Period (loss reporting deadline) for Spring Crops

Fruit Acreage/Production Reports & Pre-Acceptance Worksheets Due

*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.

Partners — Fall 2020

36

Close to Home

➡ Below: Cherry farmer John Gallagher (center) with some of his ten children and grandchildren.

A CHERRY FARMER IN LEELANAU COUNTY FIFTH-GENERATION CHERRY FARMER JOHN GALLAGHER HAS EXPERIENCED MULTIPLE FARMING CHALLENGES OVER THE MANY YEARS HE’S BEEN IN BUSINESS, BUT ACKNOWLEDGES 2020 MAY BE THE TOUGHEST TEST OF ENDURANCE THE LEELANAU COUNTY FARM HAS EVER HAD TO WITHSTAND. At 23, Gallagher purchased a small cherry farm through the Farm Service Agency (FSA), eventually merging it with the family farm when his father passed away seven years later. He has accumulated over 400 acres, including 210 acres of fruit orchards and a thriving agritourism business specializing in scenic, on-site weddings (www.bayviewweddings.com).

Overlooking Grand Traverse Bay in the ‘Cherry Capital of the World’, the farm grows sweet and tart cherries on an ideal landscape. The acreage is hilly and wooded; cool air rolls off the bay and over the grounds, producing the perfect fruitnurturing environment.

Despite the climate and the area’s astonishing beauty, market fluctuations, foreign imports, brown rot, a shrinking number of cherry processors and the coronavirus pandemic have negatively impacted Gallagher’s season and Michigan’s cherry industry as a whole.

But Gallagher’s not complaining – he’s taking action.

“COVID-19 restrictions have affected our farm workers and our wedding business,” says John. “My son, John III and daughter-inlaw Rose, have done a great job of creating venues for elopement ceremonies and small-sized weddings. We’re adapting to the pandemic. Our biggest, ongoing challenge is

37

Summer — Partners Fall 20202018 — Partners

with market pricing and the lack of legislative protection from ‘cherry dumping’ from Turkey.

“Cherry growers in the USA cannot compete with world trade that is subsidized and has currency that’s worth 10 cents to our dollar,” he adds. “I work to keep my trees healthy and keep the fruit safe. But when you’re growing cherries below cost, and you’re paying a processor to take your fruit – that’s not sustainable. My father, my grandfather, neither of them went through this, and without legislation I don’t know how we, as growers in a tiny industry, are going to solve the issue.”

Growing advocacy John and his family have stepped up to become

involved with legislative matters affecting fruit growers at the state and federal levels. As a Cherry Industry Administrative Board (CIAB) member, he feels strongly that the American public deserves to understand their food supply chain, and where their food originates. Two of John’s sons, John III and Jordan, are actively working to spotlight the effects of unrestricted imports on what, four years ago, was Michigan’s third largest crop.

In addition to his legislative advocacy, John proactively purchased Whole Farm Revenue Protection (WFRP) from GreenStone Farm Credit Services to protect his orchards from an unstable market. The insurance has given him time to grapple with current market factors and has effectively saved his operation.

Whole Farm Revenue Protection provides a risk management safety net for all commodities on the farm under one insurance policy. If you raise less than three commodities, you can insure from 50-75 percent of your approved revenue. If you raise more than three or more commodities, you can insure up to 85 percent. Losses occur when your actual revenue from crops and animal products falls below their guaranteed revenue, which is the approved revenue multiplied by the coverage level.

Like other forms of insurance, premium levels will depend on the likelihood of a claim and the level of deductible chosen.

“I sat down with the adjuster a year and a half ago,” Gallagher states. “And after we penciled through a three-hour meeting he told me yes, I had a claim under WFRP and that I would have enough to run the farm this year.

“I’ve talked to my neighbors, other growers, who thought they were insured. I told them about Whole Farm Revenue Protection and explained what it covered, and they’ve thanked me up and down for sharing the information. They didn’t have a claim under their previous coverage, and now they do and they’re able to keep their farms.”

Senior Crop Insurance Specialist Cory Blumerick weighs in on the importance of meeting with your crop insurance specialist annually.

“Since Whole Farm Revenue Protection became available in 2015, we have often times been able to provide a different form of

revenue protection that may be more beneficial than current individual crop policies,” Cory says.

“With the multitude of crop insurance policy options available, and growers’ ever-changing historical averages, it is important to dig into each grower’s risk management needs yearly, in order to tailor a specialized crop insurance program for that producer.

“The options for specialty crop producers coverage will only be increasing in the coming years,” he adds. “Part of the 2018 Farm Bill is to provide better options for specialty crop and local farming/direct market operations.”

Farming is a family business, and all ten of John’s children have pitched in to help as needed over the years. Gallagher Farms covers some of the prettiest acreage in the nation, and as much as John appreciates the beauty, the real bonus is having his children and grandchildren close to home.

➡ Above: John (center) with sons and farming partners Jordan and Christian.

defending Michigan farms against unfair trade advantages is both his responsibility to the farming community, and his legacy to those who love his farm as much as he does. ■

A family farm is heritage worth preserving; for Gallagher, growing high-quality fruit and

Partners — Fall 2020

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ADVOCATING FOR FARMERS THROUGH CROP INSURANCE POLICY ENHANCEMENTS

By Cory Blumerick, Senior Crop Insurance Specialist In 2019, Federal Crop Insurance Policies provided coverage for more than 370 million acres of cropland, with 1.1 million individual policies, written by 14 insurance underwriters.

Federal Multiple Peril Crop Insurance (MPCI) policies are administered by the Risk Management Agency (RMA), which is a branch of the USDA, and written through privatesector insurance companies. Yearly, the RMA makes a multitude of changes to their policies, which help keep the policies actuarially sound and relevant in order to provide solid risk management options for producers.

The RMA makes decisions on which policy modifications will be made through a variety of means, from grower meetings, to summaries of data mining of actuaries, to pre-planned policy audits spaced out over time. Since the 2014 farm bill, there has been an initiative of both the USDA and RMA to provide enhanced products to serve the specialty crop industry, as well as bolster the entire program. In many aspects, they have been succeeding.

As time moves forward, the agricultural climate continues to change. With changes to markets, consumer use, and weather perils, it is important to remain on the leading edge of recommending changes that would provide management to new and continued risks posed to producers.

There are some issues that are unknown to RMA, that unless presented may go unnoticed. I believe it is part of our duty as insurance industry professionals, producers, and agricultural experts to bring some of these issues to light and provide recommendations to modify the existing policies.

We have been preparing for the 2021 crop year by submitting recommendations for certain issues that are not currently being adequately covered

by crop insurance policies. Examples of some of the formal requests recommended and submitted through multiple channels include:

for Balatons). We request that growers be able to establish optional units by these types, along with the existing optional unit qualifications.

Whole Farm Revenue Protection - Revenue to Count for Crop Insurance Indemnities: We strongly recommend any crop insurance indemnities paid during the Whole Farm History period be considered allowable revenue when calculating growers Whole Farm Historic Average.

Indemnities due to growers are considered crop revenue and are taxable revenue. It is understood that there is concern, as there is potential for double subsidization.

These three types of Processing Sweet Cherries carry not only different market risks but are also subject to different pests and diseases which require different management practices. Currently, they are all insured under Processing Sweet Cherries as one type. The planting pattern is always separated by type, and production is kept separate by the Cherry Marketing Institute.

To mitigate this, we recommend action be taken to offset that, and allow the revenue to be used. This could be done through a number of ways, such as having an option of “Use of Loss Revenue” (UL), which would increase the grower’s premium rate, but allow the grower to utilize the indemnities as allowable revenue in their whole farm history period.

Whole Farm Revenue Protection - Direct Marketing: Establish blanket direct market crop category that does not require actual grower records. This would replace the need to break out the vast variety of commodities in the Farm Operation Report (FOR) and simplify the application for the grower, agent and Authorized Insurance Providers (AIP).

For all growers, including direct market with less than $1M revenue, create a simplified method of qualification using the schedule F to establish coverage.

Sweet Cherry ARH Policy: Allow Processing Sweet Cherries, type 112, to qualify for separate insurable units by three new types, Canners, Briners, and Balatons (also establish fresh type 111

“

It is important to remain on the leading edge of recommending changes that would provide management to new and continued risks posed to producers.

”

Growers will be able to provide separate Actual Revenue History (ARH) databases to establish accurate approved yields and revenues by these types.

Organic Enterprise Units by Practice: Multiple Farm Credit associations collaborated to request that RMA consider organic (certified or transitional) to be eligible for Enterprise Units by practice. As demand for organics continues to increase, we need to offer coverage that is specific for this and not have it comingled with conventional commodities for production and claims. This would also allow producers to choose different coverage levels for their organic versus conventional, similar to the option they have today with irrigated and non-irrigated ground.

Note that these request examples are part of larger submissions that were put together solely

by GreenStone or in cooperation with the Farm Credit System nationwide. If you, as a producer or industry professional notice any shortfalls in the current policies, we encourage you to bring those to light to either your insurance company or to your agent.

We understand the limitations that RMA may have in approving some of these requests, as the RMA has more information that may deem them to be not actuarially sound. This will not prevent us from requesting, as we want producers to have a quality, subsidized, risk management program available to them. ■

...Tech Tip

Partners — Fall 2020

40

Our DRP Dairy Trio SUPPORTING YOUR SUCCESS NOW OFFERING DRP CUSTOMERS BI-WEEKLY DAIRY MARKETING CALLS TO HELP THEM STAY ABREAST OF THE LATEST INDUSTRY TRENDS AND PLAN FOR ANTICIPATED MARKET CHANGES. GreenStone is pleased to provide dairy producers with a trio of specialized services that work together to protect and assist their businesses.

Our crop insurance professionals, combined with one of the dairy industry’s leading experts, have developed personalized risk management opportunities for dairy farmers that go beyond insuring product to actively help

41

Fall 2020 — Partners

dairy operations succeed. With an analyzer tool that tracks and compares data for budgeting and forecasting, and online live presentations highlighting the latest dairy trends, GreenStone customers have insider access to a solid line-up of support.

1) Dairy Revenue Protection (DRP) is a federally subsidized insurance product and a dairy farmer’s first line of defense against unexpected declines in quarterly milk sales revenue, relative to a guaranteed coverage level. The expected revenue is based on futures prices for milk and dairy commodities, and the amount of covered milk production elected by the dairy producer. Offered

through GreenStone, DRP protects dairy farmers against losses incurred by market fluctuations beyond their control provides a safety net for unforeseen challenges.

2) The DRP Analyzer Tool is an exclusive product designed expressly for members who have signed a Dairy Revenue Protection application with GreenStone’s crop insurance team. The Analyzer enables customers to follow live daily tracking of producer endorsements and to develop operational projections based on production and revenue floors. The dairy industry comes with an array of seasonal variables; this new tool allows side-by-side comparisons of coverage

details unique to each farmer’s operation, including tracking income, calculated loss probability and personalized risk management based on actual quarterly statistics. Ease of use, instant reports and GreenStone’s ongoing development adding extra features and benefits make the DRP Analyzer Tool an invaluable peace-of-mind tool for planning.

3) New Dairy Marketing Calls with dairy expert Dr. Marin Bozic, are invaluable add-ons for GreenStone’s DRP customers. These free, bi-weekly video calls cover topics such as DRP sales, premium levels vs. risk ahead, key drivers of dairy prices and market uncertainty over the next several months. Dr. Bozic is an assistant professor in the department of applied economics at the University of

“

GreenStone is pleased to provide dairy producers with a trio of specialized services...

”

Minnesota. His research program in dairy economics focuses on dairy policy, risk management, demand for dairy foods and economics of new dairy food processing technologies. A leading contributor to the Dairy Revenue Protection program, Dr. Bozic is also the creator of the DRP Analyzer Tool.

His shared expertise during Dairy Marketing Calls will give our DRP customers the trending insight they need to make knowledgeable decisions for their dairy farms.

Let GreenStone support your success We can help you remove guesswork from forecasting and budgeting, while protecting your revenue from potentially devastating market lows. For information about DRP, or to place your DRP policy and get added-bonus access to the free DRP Analyzer Tool and Dairy Marketing Calls, contact a GreenStone crop insurance specialist now at a branch office near you. ■ Partners — Fall 2020

42

PROTECT YOUR BEEKEEPING BUSINESS WITH APICULTURE CROP INSURANCE

By Phillip Preston, Crop Insurance Specialist (and beekeeper) WHEN I WAS NINE YEARS OLD MY RETIRED NEIGHBOR GAVE ME A TOUR OF HIS HONEYBEE OPERATION. TUCKED AWAY IN THE CEDAR SWAMPS OF THE LES CHENEAUX ISLANDS WERE 45 HIVES. I’VE BEEN HOOKED ON BEEKEEPING SINCE THAT DAY, AND I DID EVERY ODD JOB I COULD FIND TO EARN ENOUGH MONEY TO BUY MY FIRST TWO HIVES.

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Fall 2020 — Partners

“

A good beekeeper watches the weather and responds, providing optimal locations, water, and supplemental feed during a dearth. These actions cost time and money.

”

I spent a good portion of the following winter building Langstroth hives in my neighbor’s barn and the following summer I was mentored in the art of keeping honeybees. It was a lot easier back then; we were winning the battle against tracheal mites, and hives across the nation were rebounding. No one had ever heard of the Small Hive Beetle, Colony Collapse Disorder (CCD) or Varroa.

I have always marveled at the influence weather has on honey production. One year I would be lucky to get 50 pounds of honey from a hive, while other years a hive might produce over 200 pounds! Given the opportunity, a healthy hive will put on as much honey as possible but there are limiting factors: overall seasonal temperatures, rainfall, water availability, and location.

Beekeeping Resource Risk Management How can an apiculture-based business manage its natural risks to production? A good beekeeper watches the weather and responds, providing optimal locations, water, and supplemental feed during a dearth. These actions cost time and money.

The USDA realized that producers can’t always fight mother nature and created a couple of resources for beekeepers to help manage increased costs and risk to their revenue.

After experimenting with traditional crop insurance ideas, the USDA-Risk Management Agency (RMA) office released a unique insurance policy for apiculture. In 2017 a final product became available.

Beekeepers are now able to insure against poor rainfall in a designated area around their hives. The producer selects two-month intervals (you must select at least two intervals that don’t overlap) within the year and is guaranteed that at least 70% to 90% (based on the producer’s policy elections) of the average rain will fall in the designated area. Rainfall has a direct relationship on available pollen and nectar supplies; inadequate rain could result in your hives having less production or may require additional inputs to retain colony health.

I like several things about apiculture insurance: 1) You can look back over 20 years and see how well each

location and time interval performed. While the past doesn’t necessarily predict the future or guarantee future claim payments, it does give an excellent viability test and helps verify perceived risk.

For example, in my designated area my gut said I need coverage in the AugustSeptember interval. This is production time! Goldenrod, purple loosestrife, and birdsfoot trefoil are all in great supply during these two months. My hives could easily do 100 pounds a hive in an optimal year. I was right! Upon checking the historical data, I discovered that 11 out of 20 years had a rainfall that would have triggered a claim payment equaling an estimated 180% of the premium I would have theoretically paid into the program.

2) This policy doesn’t require production record paperwork. Most crop insurance policies require a producer to retain copious amounts of harvest records and production data that all need to be verifiable through a third party. This policy only requires that your hives be in the designated area during the selected interval, that you own or rent the land the hives reside on, and that you can somehow verify that you own the hives (usually receipts for woodenware, bee packages, or a nucleus hive are enough).

3) You choose what to insure. You make the decision on how many hives you insure based on your own risk needs. You can only insure up to a maximum of all the hives you have in the nation, so migratory keepers aren’t excluded from this policy.

4) Everyone is included. Obviously, there are some program requirements to participate but the policy doesn’t limit anyone from participating based on size. Everyone from small hobby businesses, sideliners, and large commercial operations can participate. You should discuss the program requirements with a qualified crop insurance agent.

As beekeepers we can only control our best practices. We can be prepared to respond quickly and to follow all the best farming practices and Integrated Pest Management (IPM) that the experts can create, but we can’t make it rain...so, I’m glad we can insure one of the risks we can’t control.

The deadline to sign up for coverage for the 2021 calendar year is November 15, 2020. I encourage you to make an appointment with a qualified crop insurance agent familiar with the apiculture policy to determine if it’s right for your operation. ■

BEEKEEPING CROP INSURANCE WEBINAR OCTOBER 20, 6:30-7:30 P.M. EST

Join GreenStone Crop Insurance Specialist and Beekeeper Phillip Preston for a free webinar on apiculture risk management. This informational webinar will is designed for commercial operators, part-time farmers and sideliners, but everyone is welcome to attend. To register for this online event, email Phillip.Preston@greenstonefcs.com.

Partners — Fall 2020

44

Pandemic Recordkeeping The Difference Between Being Reactive vs.

Proactive During Unprecedented Times

By Chad Zagar, VP and Managing Director of Financial Services

Throughout 2020, federal, state and local governments enacted programs to help farmers weather the impact of COVID-19 on their operations. This article would be extremely long if we attempted to name all of the different programs, but a few of the more familiar ones from the CARES and HEALS acts are the Payroll Protection Program (PPP), Michigan Agriculture Safety Grants, Economic Injury Disaster Loans (EIDL) and potential Payroll Tax Credits.

What has been consistent with these programs? You have had to move fast to take advantage of them; and each has required significant quality financial information to qualify and apply.

We have seen that it’s much easier to obtain support with good accounting records! Many of the programs have asked for current year tax filings, current income statements and/ or balance sheets, rest of the year financial statement projections, and year over year analysis of financial results to determine the impact COVID-19 has had on your business.

Farmers who are up to date on their financial

45

Fall 2020 — Partners

reporting have been able to be proactive versus reactive to these opportunities, and have been able to make educated decisions in a much quicker manner.

So, if your operation’s books are in order – great. Keep it up! In the current agricultural economy and ongoing pandemic, farmers need to be players, not victims. If you’ve got work to do, here are steps you can take to be a player in this game: • Have your records in order. Having an accurate set of financial records is critical, and a shoebox of receipts does not count!

A computer program or a worksheet that reconciles back to your bank and debt statements is best. This is generally the first step in good financial planning and a piece that should not be ignored. If this is not something you want to do, have time to do, or have the ability to do, it may be best to hire a bookkeeper or accountant to assist you.

• Don’t procrastinate. Waiting until December to start your bookkeeping leaves you scrambling to complete

DESCRIPTION

19 ACTUAL

BUDGET CHANGE NOTES

20 BUDGET

Tax Calendar...

Revenues Corn

$471,000 See revenue analysis

$318,750

OCTOBER

Soybeans

$110,000 See revenue analysis

$292,500

Revenues - subtotal

$581,000

$611,250

15

Individuals file a 2019 income tax return (Form 1040) if an automatic six-month extension was requested. (3 months from extended tax deadline of July 15 in 2020 due to COVID-19).

Corporations file a 2019 calendar year income tax return (Form 1120) if you requested an automatic six-month extension. (3 months from extended tax deadline of July 15 in 2020 due to COVID-19).

31

Non-farm employers file Form 941 for the third quarter to report wages paid, and Social Security, Medicare, and income tax withheld from wages, and compute employer matching social security payments.

Operating expenses Car and truck expenses

$5,000 No change expected

$5,000

Chemicals

$12,000 No change expected

$12,000

Custom hire

$20,000 Will harvest own

Depreciation

$15,000 Harvester purchase required

Employee benefit programs Feed

16

Corporations deposit the fourth installment of estimated tax for 2020.

activities to help your situation. While this is a always considered a tax no-no, this year poor recordkeeping could have also impacted your ability to apply for COVID-19 related grants and loans.

• Budget, budget, budget. A budget is a planning tool necessary for building a framework for your farm and its finances.

Combining past trends with realistic forecasts for the upcoming year, a budget provides a detailed view of revenue expectations and how those balance against anticipated expenses.

Budgets also help with setting goals and establishing priorities. At a minimum, farmers should look at their total farm operation and establish goals for the upcoming year.

Above is an example of how a multi-crop farmer can estimate revenue and expenses for the year.

Goals should be established in granularity for the upcoming year, expense line item by expense line item, including the reasons and rationale behind any expected change in your cost structure.

For example, ask yourself: 1. Will expense line items increase by cost of living adjustments?

- No change expected

-

- No change expected

-

Fertilizers and line

$5,000 No change expected

$5,000

Freight and trucking

$8,000 No change expected

$8,000

Gasoline, fuel and oil

$5,000 Double due to harvesting

$10,000

Insurance

$10,000 3% inflation increase

$10,300

Interest

$40,000 Debt paid down by 10%

$36,000

Labor hired Pension and profit-sharing plans Rent - machinery and equipment

DECEMBER

$35,000

$100,000 3% inflation increase

$103,000

$3,000 3% inflation increase

$3,090

- No change expected

-

Rent - land

$45,000 No change expected

$45,000

Seeds and plants

$20,000 No change expected

$20,000

Storage and warehousing

$20,000 No change expected

$20,000

Supplies

$20,000 No change expected

$20,000

Taxes

$10,000 3% inflation increase

$10,300

Utilities

$12,500 No change expected

$12,500

Veterinary, breeding and medicine Other expenses

- No change expected $25,000 3% inflation increase

$25,750

Expenses subtotal

$375,500

$380,940

Taxable net income

$205,500

$230,310

2. Are you going to outsource less custom hire work?

3. Do your rent agreements have escalations in the current year?

A detailed and realistic budget is one of the most important tools to guide your business. Providing the information necessary to operate within your family living means, and handle upcoming challenges, will hopefully help you record profitable results.

With a budget established, you’ll continually refer to it as a way of measuring performance against expectations. Next-level budgeting is when farms complete their budgets with multiple scenarios: worst case, most likely, and best case models are frequently identified. This helps farmers to mentally prepare for contingencies and identify potential changes from initial expectations.

Completing budgets with these scenarios allows a farmer to be adaptive to uncontrollable events.

Would your operation have benefited from this type of planning given what 2020 has thrown at you?

Regardless of whether or not your actual results and profitability are as strong as you would like, high-quality financial reports and budgets help provide clarity to the business and family living decisions you need to make. Reports demonstrate your commitment to increasing your profitability, and show your history of successful farm management to lenders and other capital providers. This allows them to be confident of the accuracy and completeness of your records.

Reach out to your local GreenStone tax and accounting professional if you need assistance with your bookkeeping. Our team of experts is ready to help you with your financial planning needs! ■

Partners — Fall 2020

46

3515 West Road East Lansing, MI 48823

Fall feature highlight...

Terry Maynard and his son, Austin, were tired of hunting on other people’s property.

They were tired of getting up early to drive hours to access land where they were likely to run into large groups of people, unsafe hunting practices and temporary deer blinds.

That’s why three years ago Terry and Austin bought 92 acres of recreational land in Parma, Michigan with a country living loan through GreenStone Farm Credit Services; and they soon realized every hunter’s dream.

Read more on page 27.