Partners Summer 2020

GreenStone FCS

Summer 2020

Promoting the business success of our customers and the rural community

+S ummer 2020 MENTORSHIP Market Outlook + Growing Farmers-YBSF + Community Mays pg. 5 Impact

WITH A MISSION

SUMMER 20 5 YBSF

Feature. Tucker Mays is proud to be a fifth-generation farmer. He grew up across the field from his grandpa and spent a lot of time with him on his farm.

Currently, Tucker owns 60 acres and plants corn, wheat and soybeans. Like many YBS farmers, he also works fulltime for an agricultural technology company.

25

5

31

41

43

25 GreenStone Story. Young, Beginning and Small Farmers (YBSF) are a focus for GreenStone, and enhancing programs to assist new producers grow is a priority for 2020.

31 Country Living Feature.

The Oakasons loaded up their household to embark on an adventure as owners of a 7.25-acre hobby farm in Manawa, Wisconsin.

41 Crop Insurance Feature. You can protect your hay Investment with Forage Insurance and Forage Seeding Insurance.

43 Accounting Feature. Jack and Tom Jeppesen are continuing the thirdgeneration family farm legacy started by their grandfather in 1923.

3 CEO Comments.

President and CEO, Dave Armstrong, shares the many ways we are moving forward together.

34 Photography Tips.

These five tips are designed for the camera most people refer to as their cellphone, but work equally well with a traditional camera.

Publisher’s Note:

9 Guest Column.

Today’s environment has created a lot of priority around responding to urgent and important challenges. This requires focus on the short-term… which is the right response for immediate survival.

35 Guest Column.

Expert trail cam advice from Michigan Out of Doors TV.

From my roller desk chair at the office to my kitchen table chair at home. Intuition from body language during discussions to voice inflection and little square videos on the computer.

Brainstorming chatter of the team to sibling quarrels and squeals. Years of change management to days of adoption.

Eagerly rushing to the next sporting event on the schedule to relaxed laughter over a board game.

11 Market Outlook.

Overall economic activity appears to have bottomed in April as the majority of governments have begun phased reopening’s and tepid optimism for a recovery has returned to the majority of market participants.

21 GreenStone Turns 20– Part II. GreenStone President and CEO Dave Armstrong reflects on the last 20 years, and the milestone decisions that shaped the company and his vision of success.

27 Directors’ Perspective.

Four GreenStone Directors talk on how they have adjusted their plans, remained grounded and are looking ahead to the future.

36 Healthy Summer Snacks.

Summer in Michigan and Wisconsin means an abundance of produce fresh from the field.

38 Supplemental Coverage Option (SCO).

SCO is one of the most cost-effective ways to enhance coverage and manage risk.

8 Blog Brief 14 Member News 15 Calendar of Events 16 GreenStone Scholarships 17 Summer Interns 18 Candid Comments 19 Behind the Scenes 20 Election Results

Changing your view really can change your perspective. I always knew that was true – but wow! It’s been proven to me in more ways than I could have imagined these last few months.

The views sure have changed, and I have many new perspectives to consider as a result, but I can’t say I prefer one over the other. What I can say, is there’s a way to make the best of any view, and TOGETHER you get the best result.

So here we are, bringing you a view in this latest issue of Partners, zoomed in a few different ways to focus on young, beginning, and small farmers. Starting on page 5 with the perspectives that changed when this beginning farmer had the opportunity to see things through the eyes of his mentor.

Imagine the outlooks shared by the 40+ youth highlighted through our scholarship and internship programs. Hear from my own teammates, who are using their real world perspective as farmers to bring improvements to GreenStone’s young, beginning and small farmer program, and then skip to page 25 where you can read for yourself how GreenStone is sharpening its own view and working to bring new resources to them.

The whole publication is filled with tools to support your needs, bring new perspectives, and strengthen your assessments. And on page 21, you’ll find that our focus on the future starts at the top – when your CEO, Dave Armstrong, shares Part II of his view from the merger in 2000 and the perspectives gained over the last 20 years!

Keep your mind open and your eyes sharp…happy reading!

20 Pause for Applause 24 Farm Forward Mentorship

– Melissa

29 Legislative Matters.

The revised National Pollutant Discharge Elimination System (NPDES) regulatory permits has resulted in an administrative action to challenge the requirements of the permit process.

30 PAC Progress.

Coronavirus pandemic certainly triggered a keen awareness of the essential nature of what happens in agriculture and the rural communities supporting these operations. Education is critical.

33 Blog Brief 37 Commodity Cuisine...

Garlic Roasted Green Beans

39 Crop Insurance News 40 Crop Insurance Calendar 45 Tax Calendar 46 Tech Tip

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:

Summer Has Landed IT SEEMS LIKE A LIFETIME AGO THAT I FINISHED UP MY REMARKS FOR THE SPRING EDITION OF PARTNERS. OUR COUNTRY AND THE ENTIRE WORLD CONTINUE TO FIGHT THE INSIDIOUS NOVEL CORONAVIRUS INCLUDING ITS SERIOUS IMPACT ON PEOPLE’S HEALTH AND FINANCIAL SECURITY. While states around the country are gradually moving through the stages of their reopening plans, very few things are back to the normal we once knew. Even GreenStone, after three months of serving customers remotely, we have reopened our buildings, but the protective measures necessary to help keep both customers and staff safe means that “normal” is still a few steps away from what we used to expect, and no one can predict the long-term impact this will have on our lives in the months and years to come.

May, with many specialty crops hit by a killing freeze in Michigan on May 9. Despite this, and a once in 500-year flood in north central Michigan, corn and soybean stands have emerged ahead of the five-year average with the soybean crop in Michigan as of late June rated 57% good to excellent and corn at 58%.

Also, let’s not forget that interest rates have dropped to levels not seen since the last “great recession” of 2009-2010.

The Positive

The federal government has also now infused nearly $3 trillion in various forms of economic stimulus to help buoy the economy with nearly $19 billion targeted for agriculture through the Coronavirus Food Assistance Program (CFAP) alone, plus making agriculture producers eligible for the SBA PPP and EIDL programs. In addition, the State of Michigan’s Agriculture Disaster Loan Origination Program was launched in March with applications ending May 31.

Some things we do know is that protein and dairy prices have recovered somewhat from their lows in March and April as the industry has slowly regained processing capacity and transitioned production for more consumption at home. Most of our territory in Michigan and Wisconsin is off to a good start on the 2020 crop. Overall, many crops were in early, only to languish due to unusually cold temperatures in

3

Summer 2020 — Partners

“

Since March, GreenStone alone has extended more than $140 million to approximately 1,400 customers through the SBA PPP program...

The State of Wisconsin also announced a new program on June 5. The Wisconsin Farm Support Program includes a total of $50 million for Wisconsin farmers who experienced Coronavirus-related financial losses. Payments are expected to range between $1,000 to $3,500. Plus, USDA Rural Development released a new CARES Act Business and Industry Loan program in early June for lenders to use in extending working capital to borrowers whose financial situation has deteriorated due to Coronavirus-related causes and now present more than a normal amount of risk to the financial institution.

Finally, crop insurance continues to be used more widely, with more robust levels of coverage to provide another vital layer of risk management across a broad sector of commodities.

Since March, GreenStone alone has extended more than $140 million to approximately 1,400 customers through the Small Business Administration (SBA) Paycheck Protection Program (PPP), $6.5 million in Michigan Agriculture Disaster Loan Origination Program, provided payment deferrals to just over 300 country living customers, plus dozens of individual farm customer repayment plan modifications, while also distributing $100 million in patronage payments to customers.

We are now in the PPP Loan Forgiveness phase. Working through the various changes over the last few months from the Department of Treasury and the SBA, we have provided numerous updates to our customers seeking forgiveness. We have also implement an online, simple and convenient tool to assist those members in submitting their PPP Loan Forgiveness application. The process provides them a secure way to enter their information, upload documentation, and electronically sign and submit the application to the SBA. Like the initial PPP applications, GreenStone continues to work through the unknowns of this program to ensure we’re able to assist all 1,300+ members with their forgiveness applications.

The Reality Believe me, I understand the uncertainty and stress that times like these create and do not

”

want to minimize the toll stress from this pandemic continues to cause. However, these and a number of other things are going right and could make 2020 better than any of us would have ever expected in those early dark days of spring. Yes, the virus could rebound in the fall or winter and create even more mischief, but right now – God willing – there are many reasons to be optimistic for a soft landing.

To date, GreenStone’s growth is well ahead of the 2020 business plan, with risk in the portfolio being managed at a relatively low level resulting in exceptionally strong earnings to date. Together, this puts us on track to possibly an even better performance than we achieved last year, which bodes well for strong patronage once again if the current trajectory is maintained.

The Future As I mentioned in my spring Partners comments, our members and our staff transitioned amazingly well to a “virtual” service model while our branches remained closed as a result of the virus and State Executive orders. From the comments I have received, our service has remained relatively seamless to most with business being transacted digitally using a wide variety of tools, from the basic telephone to secure portals, electronic signatures, and online banking services.

As the impact of the pandemic in the states we serve receded and State Executive Orders changed, GreenStone also moved to the reengagement stages of our pandemic plan.

Starting with appointment-based customer meetings in early June, we followed the state guidelines and ultimately reopened our buildings on June 29. As I’ve said all along, we’ve been thoughtful and considerate throughout the pandemic to the needs – and the safety – of our staff and our customers.

All of our staff have completed training on personal and office safety and how to minimize the spread of the virus, including proper cleaning and disinfecting. We have provided several safety precautions in our buildings and daily staff practices, which we ask our customers to adopt when coming

to the branch, to help us provide a safe environment to serve our members. When you need to come to the office, face coverings will be available if you don’t have your own.

Sanitization stations have been added for your safety, a protective barrier has been added to the lobby desk to safely serve you, and social distancing will be required. The health of our customers and employees continue to be GreenStone’s top priority. We will be following CDC guidelines and OSHA requirements to ensure proper cleaning and disinfecting. And of course, to help keep everyone safe, we do ask that you remain home if you have recently experienced any symptoms of sickness. Be sure to ask our team about the all the ways we can serve your needs! I would ask for your cooperation, understanding, and patience in following these procedures we have put in place. While we all have our individual beliefs and preferences, our ONLY motive at GreenStone is to keep YOU and our STAFF healthy; thank you in advance in helping us achieve this goal!

Feel free to reach out to me directly if you have any concerns regarding the level of service you have received or anything else that I can be of assistance with.

Thank you to our farmers for all you have done for the rest of us during these difficult times through your unwavering commitment to provide the most nutritious, affordable, AND dependable source of food the world has ever known. All of us at GreenStone are blessed to do what we do to help you be your BEST! Best wishes for a successful, healthy, and safe summer.

Dave Armstrong

517-318-4105 dave.armstrong@greenstonefcs.com Partners — Summer 2020

4

entorship with a ission TUCKER MAYS IS PROUD TO BE A FIFTH-GENERATION FARMER. HE GREW UP ACROSS THE FIELD FROM HIS GRANDPA SHEATHELM AND SPENT A LOT OF TIME WITH HIM ON HIS FARM. GRANDPA RETIRED WHEN TUCKER WAS TWELVE, AND ONE OF HIS GRANDPA’S COUSINS TOOK OVER THE OPERATION. TUCKER REMEMBERS ASKING THE COUSIN IF HE COULD RIDE AROUND WITH THE WORKERS IN THE FIELD AND HANG OUT.

5

Summer 2020 — Partners

GROW

Cousin Duane, who obviously saw a future farmer in the kid standing in front of him, answered, “No, you can’t hang around with us. But you can come and work for us!”

Tucker showed up the first morning and auditioned with a couple of rounds on the tractor. Duane pronounced him “good to go” and Tucker spent the next 10 years working with them on their family farm.

With his heart in farming, Tucker figured he’d had enough academics when he graduated from high school.

Then he learned about the Institute of Agricultural Technology certificate program offered at Michigan State University (MSU), and despite not feeling that he was college material, took a chance on furthering his agriculture knowledge. Tucker quickly realized that MSU’s program was absolutely the right direction for him, opening his eyes to how much he didn’t know about farming and how valuable it was to have a network of professionals ready to help!

This network led Tucker into GreenStone’s Farm Forward Mentorship program for young, beginning, and small (YBS) farmers.

to settle down and start his own farm in Michigan. It was tough to find property, but GreenStone Farm Credit Services worked with Tucker every step of the way. His original financial services officer, Larry Sheridan (now retired) asked Tucker if he would be interested in a mentor-mentee program. From his education at MSU and through his shared experience with farmworkers across the USA, Tucker knew exactly how much value a network has and immediately agreed.

➡O pposite page: Mays and his Grandpa, Dorwin Sheathelm, stand in front of the first tractor Sheathelm ever purchased. Mays restored it years later to bring it to its current condition. ➡B ottom of page: Mays with his Grandpa’s IH 544. The tractor has been in the family since it was purchased new in the 1970s. ➡B elow: Tucker Mays currently owns 60 acres and plants corn, wheat and soybeans.

“I was paired with Ken Judkins, who owns a farm in Ann Arbor,” Tucker comments. “Most everyone in agriculture is very helpful to beginning farmers, but the Farm Forward Mentorship program allows for in-depth discussion and idea sharing. It’s like having a mentorwith-a-mission, someone who genuinely wants you to succeed and is willing to take the time to critique what you’re doing on the farm and make recommendations.

“Ken and I talk often, and I realized pretty quickly that our mentorship will continue as a friendship well beyond the 18-month program.

It seems like I’ve done everything the hard way, and to have someone

“When I graduated from the ag tech program, I knew my grandpa’s farm wouldn’t be able to sustain another fulltime family member, so I started harvesting work for a company in Minnesota,” says Tucker. “A group of us would head off to Texas to harvest wheat on a multitude of trucks, semis, pickups, campers, combines and tractors, and we would work our way up to western Montana.

“I still keep in touch with a lot of the harvesters, who are from all over the United States and from all sorts of different backgrounds and agricultural careers. It was an eye-opener for me to see how big agriculture is, and how growers across the nation all have the same goal but are working with different challenges.”

After three seasons of work and travel, Tucker made the decision

Partners — Summer 2020

6

“

I think the biggest success factor for Young, Beginning and Small Farmers is networking with existing farmers, and really being open to learn from them.

”

➡ Left: Mays inspecting a field of corn he planted with a custom precision corn planter he built.

• Something small, like growing your own acre of sweet corn and selling it at a farm stand can have a huge impact on a beginning farmer getting loan approval.

Proving you’ve had hands-on experience with your own enterprise really counts!

• Keep track of all of your data. If you’re farming a couple of acres, maintain records, write down the planning details and explain how you managed your season. Showcase your skills, knowledge and abilities.

• Contact your local GreenStone branch and talk to a financial services officer about applying to be in the Farm Forward Mentorship program. Participating is a great way to prove your commitment to farming and an equally great way to develop a firsthand relationship with not only the mentor, but with a loan officer.

My current GreenStone financial services officer, Stevan Stoutenburg, checks in with me regularly and keeps me informed of financial opportunities that could benefit my farm.

“I think the biggest success factor for young, beginning or small farmers is networking with existing farmers, and really being open to learn from them,” Stevan advises.

“It is also beneficial that Tucker and I communicate on a regular basis; it helps us both identify and fix potential problems, and to discover opportunities that can help Tucker succeed.

willing and able to show me a better way will save me from stumbling in the future.”

Currently, Tucker owns 60 acres and plants corn, wheat and soybeans. Like many YBS farmers, he also works fulltime for an agricultural technology company which gives him the flexibility to be out on his property when necessary and still work with clients.

Tucker also spends most of his weekends helping his grandpa, admitting that his original ‘mentor’ has taught him more about farming than anyone else.

7

Summer 2020 — Partners

“My grandpa is the most knowledgeable human being that I know! He is exceptionally optimistic when I’m not...he’s seen enough cycles to know that issues in farming usually resolve over the long haul.”

Getting started in agriculture can be challenging, but Tucker advises there are a few things young, beginning or small farmers can do to showcase their agribusiness know-how when talking with a lender about financing farmland and equipment:

“It’s refreshing to work with a young farmer that really knows the nuts and bolts of farming. Tucker stands out because he has done a lot of work educating himself about agriculture in order to run his own operation, and he’s been successful with his approach.”. ■

To learn more about available YBSF resources and programs including Grow Forward Grant and Farm Forward Mentorship opportunties visit www.greenstonefcs.com/YBSF

i

AGRICULTURE – OPEN FIELDS BLOG BRIEF GreenStone publishes regular updates on our Open Fields blog. Check out some of the posts you may have missed at www.greenstonefcs.com/openfieldsblog.

Michigan Agricultural Safety Grant Program - Grants Available July 15 In response to the economic impact of the COVID-19, the the State of Michigan has allocated $15 million of CARES Act funding to implement the Michigan Agricultural Safety Grant Program to support the needs of Michigan’s agricultural processors and farms. GreenStone is pleased to have the depth of experience and technology available to partner with the program for the application processing. Applications to apply for funding will open on July 15, 2020.

Commodity Report: Challenges with Cherries Michigan’s revered tart cherry industry is facing many challenges, both short- and long-term.

Low crop prices, COVID-19, and recent freeze events are causing grower frustration.

Gratitude and Commitment Adversity has increased the public’s understanding of what we already knew: farmers perform essential work.

Commodity Report: Focus on Forestry As the coronavirus pandemic has impacted the economy, sectors involving the Michigan and Wisconsin forestry industry are no exception.

Grow Forward Grant: Jared Hautamaki While creating his plan, Jared ran into some roadblocks and realized he needed expert guidance and help with finances. While browsing GreenStone’s quarterly Partners magazine, Jared discovered a significant resource through the Grow Forward Grant for young, beginning and small farmers to financially assist him seek a consultant for his reforesting needs. ■

Partners — Summer 2020

8

Survival.

And, SURVIVAL! How to Achieve over 100 Years in Family Business

By Barb Dartt, DVM, MS

TODAY’S ENVIRONMENT HAS CREATED A LOT OF PRIORITY AROUND RESPONDING TO URGENT AND IMPORTANT CHALLENGES – FAMILY AND EMPLOYEE HEALTH, SOURCING SUPPLIES AND COST CUTTING, TO NAME A FEW. THE CONTINUED UNCERTAINTY AND EXTERNAL PRESSURE REQUIRE FOCUS ON THE SHORT-TERM… WHICH IS THE RIGHT RESPONSE FOR IMMEDIATE SURVIVAL.

But, if you’re like 80% of agriculture and non-agriculture family business owners who have responded to various surveys, you plan to pass your business to the next generation. And sometimes, as you’re on the hamster-wheel of survival, it’s hard to find time for action that will drive this long-term goal of continuity. That is, a goal of not merely surviving today but creating the conditions within the business and the family that allow your values, your legacy, to last beyond your own lifetime.

Accomplishing the building blocks that support long-term goals might feel like “one more thing” that you just don’t have time for – especially right now. Happily, there’s been some great work done recently that highlights the practices of “100-year family enterprises, ” detailing the actions they took, early in their evolution, to sustain business success and family harmony.

Learning what they prioritized can make it much more manageable for you to keep one eye on survival today…and still spare some attention for the high payoff, long-term practices that will support your goal of family business continuity.

9

Summer 2020 — Partners

Continuity… or SURVIVAL!

The author of Borrowed from Your Grandchildren: The Evolution of 100-Year Family Enterprises, Dennis T. Jaffe, and his team interviewed over 90 family businesses who’ve sustained BOTH a sense of shared family values and identity AND a successful business and financial ventures over three or more generations.

“

They found a key practice: The survivors here (who have “survived” over 100 years!), invest in a “conscious” family. That is, a “… group of individuals who are personally tied to each other through a legacy and a commitment to becoming stewards for their own and for future generations.”

What a lovely illustration of the long-term goal of continuity! A family that feels connected to each other because of their own legacy and, because of that goodwill and connection, commit, as a group, to being guardians of the legacy (and the assets!) for use for themselves but also for their children and grandchildren.

Gorgeous vision. And, I don’t have a single client who expects this (or has found it) to be easy to achieve. So, how did they get there? Here are three key practices these family businesses embraced, generation after generation.

1. Have a strong sense of mission and values.

A family business usually begins with a first generation who sacrifices, works hard and then has success far beyond expectations. The principles and vision are lived, not stated. The next generation are often expected to continue this success, employing the same principles. But their challenges are different – siblings must learn to manage a much different business, work as a team and then, make the dream their own. No family business survives unless each generation re-forms the mission and values to both honor prior generations AND include their own “signature.”

TAKE ACTION

Come together as a family or owner group and talk about your own principles. What do you stand for? How will you behave towards each other? What will you and won’t you do within your business? Within your family? This may not seem like actual “work,” yet the discussion and eventual alignment around who you are as a family and as a business – and then the continued assessment and refinement of that across

A family business usually begins with a first generation who sacrifices, works hard and then has success far beyond expectations.

The principles and vision are lived, not stated.

years and new family members – is the glue that sustains the legacy and the commitment to stewardship.

2. S hare information.

First generation founders don’t usually have to share – they have the ideas, the knowledge and the control. When a family business evolves into a team of siblings or cousins, a much broader group must be knowledgeable enough to make key decisions together – and to do so, they need to understand financials, business plans, estate documents, tax strategy and other technical details. Many times, family needs education about what these mean and what their role is in relation to them.

Within the family businesses studied here, “…information about the family enterprise becomes freely available inside the community of the family.”

TAKE ACTION

Senior generation members must communicate more. Probably a lot more.

You can share informally – for example, talk (OUT LOUD) about the factors you considered as you made a key decision.

Or reflect (again, OUT LOUD) on how a lesson you learned from the prior generation guided your approach. And, you can share more formally. Invite the next gen to meetings with lawyers and tax advisors. Or, invest in some group education – invite your lender or another family business leader to talk to the whole group. Invest in learning and transparency.

3. B uild respect for and cooperate with each other.

The book’s author found that, “Siblings learn to fight and argue before they learn to cooperate. Some siblings never learn to cooperate. And, as a family enterprise grows in numbers and adds married-ins, differences in perspective can be more likely than common ground.” Across

”

generations, conflict can certainly result in individuals or branches leaving the family enterprise. For those family enterprises that survived, the family grew their communication skills, engaged in the difficult discussions and invested the time and money necessary to build trust, respect and cooperation.

TAKE ACTION

Often, an unwillingness to have the difficult conversations stems from not having the skills to hold that conversation.

Invest in your own conflict management skills. Or, do it as a family! There are lots of ways to do two- to three-hour trainings, by video. You can each learn skills and have a team building experience, together.

Survival in the short-term might be where your focus must lie right now. But don’t lose sight of your own, longer-term survival goals. Could yours become a family enterprise that lasts over 100 years?

Perhaps! Certainly, executing any one of the actions will take some thought and energy from you as a business owner or manager. And, sometimes the work of execution can be supported by other family members. Is there a next gen who has some interest and energy and could track down the resources you’d need to gather as a family and tackle just one of these three actions?

Find a few hours this summer and lay some of your own foundation for SURVIVAL! ■ ABOUT THE AUTHOR

Barb is a consultant with the Family Business Consulting Group, working with families and management teams to help them keep their business healthy and the people happy – and assisting with succession and continuity planning. Barb can be reached at 269-382-0539 or dartt@thefbcg.com.

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

Partners — Summer 2020

10

MARKET OUTLOOK SUMMER 2020

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

11

Summer 2020 — Partners

THE COVID-19 PANDEMIC AND THE RESULTING GOVERNMENT MANDATED STAY-AT-HOME RESTRICTIONS AND SOCIAL DISTANCING POLICIES HAVE WREAKED HAVOC ON GLOBAL ECONOMIC AND FINANCIAL MARKETS. THE SWIFT PACE OF DEMAND DESTRUCTION AND HISTORIC LEVELS OF JOB LOSSES PUSHED BOTH THE U.S. AND GLOBAL ECONOMIES INTO A LIKELY RECESSION OVER THE COURSE OF JUST A FEW WEEKS. HOWEVER, OVERALL ECONOMIC ACTIVITY APPEARS TO HAVE BOTTOMED IN APRIL AS THE MAJORITY OF GOVERNMENTS HAVE BEGUN PHASED REOPENING’S AND TEPID OPTIMISM FOR A RECOVERY HAS RETURNED TO THE MAJORITY OF MARKET PARTICIPANTS.

“

Existing home prices continue to exhibit relatively strong growth in light of record low mortgage rates, relatively low levels of single-family housing inventory, and a shift from urban living to suburban living by many millennials...

”

Labor

After spiking to 14.7% in April, the U.S. unemployment rate declined to 13.3% in May as 2.8 million jobs were brought back online during the month. Employment in food services rose by 1.4 million during May, accounting for about half of the total jobs added during the month. For reference, May’s gain in food service jobs follows a combined loss of 6.1 million such jobs in March and April. Michigan has been hit particularly hard from a labor perspective, with the State’s unemployment rate equaling 21.2% in May, well above the national average. Wisconsin has fared slightly better than Michigan with an unemployment rate in May of 12.0%, slightly below the national average. While the May employment figures do provide some cause for optimism given that the labor market appears to have troughed in April, both the unemployment and labor force participation rates remain at multi-decade highs. There is still some disagreement among economists as to how fast the labor market will tighten now that many coronavirus-related restrictions are being eased, however early indications are that while overall economic demand has improved dramatically in the last month it remains well below pre-coronavirus levels. Many consumers are indicating that they are still not comfortable engaging in activities such as eating at restaurants or patronizing movie theaters even in states that have already fully reopened, which creates some uncertainty around when the economy might fully recover.

While some service sector establishments can reopen while limiting capacity to 50% in an effort to keep patrons a safe distance apart, these restrictions will further compress margins in an industry that already operates at relatively tight margins. Overall, while there is some cause for optimism in the May jobs data,

risk remains that many businesses, particularly small business with a consumer-oriented business model, may not see demand rebound to levels that support profitability for some time.

Housing

One bright spot in the recent economic data is the housing market, which has remained surprisingly strong despite all of the coronavirusrelated uncertainty. Existing home prices continue to exhibit relatively strong growth (continuing a trend that has been underway for several years) in light of record low mortgage rates, relatively low levels of single-family housing inventory, and a shift from urban living to suburban living by many millennials that are now beginning to form households and purchase homes. The increase in home ownership among millennials is particularly interesting, as many within that demographic have been slower than their predecessor generations to purchase homes. COVID-19 appears to have only accelerated the already developing shift from urban to suburban living among millennials.

After initially declining in March and April, housing starts have also rebounded significantly over the last month, again due to relatively low inventories of existing homes and low interest rates.

Plant-closings

The coronavirus-related plant closures in the meat processing segment have drawn significant attention as many worry that back-ups at processing facilities will lead to a supply shortage for meat products.

Pork and beef packers have been particularly affected, as JBS, Cargill and Tyson all experienced temporary shutdowns at some of their processing facilities in April/May following high numbers of reported incidences of COVID-19 among the workforce. At this point the situation appears to be stabilizing, with many plants reopening in late May after testing and properly quarantining affected employees. The reopening of these plants should have a generally positive effect on the producers within these protein sectors, as it alleviates some uncertainty around whether there will be sufficient slaughter capacity to handle all of the market-ready animals currently in production. For reference, during the first week of June slaughter rates for cattle and hogs were reported at 96% and 90% of year-ago levels, respectively. This represents a significant improvement, as slaughter capacity was briefly down by as much as 25%-30% during the peak of the crisis. Some risk still remains in the meat processing sector to be sure, particularly if new outbreaks of COVID-19 lead to more plant closures going forward, however the situation does appear to be improving at this point.

Partners — Summer 2020

12

“

It should be noted that the U.S. dollar has begun to weaken relative to most other currencies over the last month, which should provide some tailwinds for U.S. exports. As always, the export landscape, particularly as it relates to China, will remain a key factor for U.S. agricultural going forward.

Commodities

”

Most commodities were negatively impacted significantly by the coronavirus-related shutdowns of the economy, as evidenced by volatility in futures prices over the last several months. Grain, dairy, lumber and fuel (including ethanol) all saw significant price declines in late March/April due to demand uncertainty during the peak of the lockdowns. That being said, many of these commodities began to rebound off of their lows in May and June as the economy began to reopen and demand for commodity products returned. The dairy industry has been particularly volatile, with milk futures briefly falling to multi-decade lows in late April as a result of, among other things, supply chain disruptions and diminished demand from the K-12 school system.

Milk futures began to rebound in May as a result of continued strong demand for fluid milk through the retail channel and are above pre-coronavirus levels as of the writing of this article.

Other commodities have experienced similar, albeit less dramatic, rebounds in price over the last several weeks, which provides at least some optimism for many producers. That being said, significant commodity price volatility may continue in the short/ medium term as future consumer demand trends continue to be unknown to some extent.

Trade

Trade continues to be a hot-button issue, particularly for agriculture. Recall that there was much optimism on the trade front earlier this year after the U.S. and China signed a new Phase I trade deal in January that promised to substantially increase U.S. agricultural shipments to China. Thus far in 2020 U.S. agriculture has seen mixed results on the export/trade front, with some commodities seeing record high shipments (pork) and other seeing records low shipments (soybeans). One winner has been the U.S. pork industry, which saw exports to China total 280,507 tonnes 13

Summer 2020 — Partners

in the first three months of 2020. For reference, this level of pork exports represents a 300% increase compared to the same period in 2019. This dramatic increase in pork exports to China is directly related to the country’s 2018/2019 outbreak of African Swine Fever, which curbed Chinese pork production by at least a third, forcing reliance on pork imports to a greater extent than has historically been the case.

While record pork exports to China is certainly a positive development, it should be noted that 20,000 tonnes of U.S. pork shipments, roughly equivalent to one week’s worth of orders, were canceled in early June after the U.S. publicly rebuked China’s handling of protests in Hong Kong. Sources close to the situation have warned that Beijing recently ordered state-owned firms to “halt large-scale soybean and pork purchases” in retaliation over U.S. objections to China’s handling of the recent Hong Kong protests.

This re-escalation of trade tensions revives fear that the increased agricultural export targets laid out in the Phase I trade deal between the two countries may not come to fruition. It should be noted that the U.S. dollar has begun to weaken relative to most other currencies over the last month, which should provide some tailwinds for U.S. exports. As always, the export landscape, particularly as it relates to China, will remain a key factor for U.S. agricultural going forward.

Row crops

Turning to row crops, 83% of Michigan corn was reported as planted as of the end of May. This represents a significant improvement compared to last year, when just 39% of corn was planted as of the end of May and is also above the 5-year average of 77% planted at the end of May. Likewise, 76% of Michigan soybeans were planted as of the end of May, which is above the five-year average of 62% by the end of May. Wisconsin’s planting progress has followed the same trend in 2020. At the end of May corn planting was 94% complete, compared to just 58% a year ago, and soybean planting was 88% complete, a significant improvement from the 34% planted at the same time last year.

While wet weather caused some delays in late May, on average the corn and soybean crops appear to be progressing nicely in Michigan, Wisconsin, and across the nation. As of May 31st, 97% of respondents across the major corn producing states indicated that the corn crop was in “Fair”, “Good”, or “Excellent” condition.

Further, 74% of respondents indicated that the corn crop condition was “Good” or “Excellent”. Similar trends hold true for soybeans, with 70% of respondents classifying the current crop conditions as “Good” or “Excellent”.

Summary

In summary, while forecasting economic activity and financial markets performance for the remainder of 2020 remains difficult, the picture is clearer than even just a month ago. The majority of financial and commodity markets appear to have begun a recovery from their lows reached earlier this year. Geo-political instability continues to provide uncertainty on the trade front, particularly to the Phase I deal with China which has significant implications for the broader economy and agriculture specifically. Ag producers and business leaders will need to remain agile as economic conditions are likely to remain fluid throughout the remainder of the year. ■

CONNECT

NEWS: ONLINE LOAN REQUEST – AG REAL ESTATE LOANS NOW AVAILABLE! As a cooperative, our customers are our owners and we strive to meet your ever-changing needs by providing easilyaccessible and secure tools and online resources. With this in mind, GreenStone has expanded our convenient online loan request system to include the ability to submit online requests for agricultural real estate loans.

A loan request can be submitted from the comfort of your own home – or barn – at any time, with these documents ready to support you: • IRS tax returns for past 1 to 3 years • Current balance sheet or personal financial statement • Current year business projection These secure requests will take approximately 15 minutes to complete and

DRP Analyzer Tool Webinars

will be followed up by direct contact from your local financial services officer.

To submit an online loan request for an agricultural property, country home, or land, go to greenstonefcs.com and select “Apply Now”.

My Access Accountholders: Alternatively, if you have previously established your My Access account, please login and go to the “Loan Dashboard” tab where you will start a new loan request using the “Apply Now” button.

New to My Access: If you’d like to begin by first creating your My Access account, which will be conveniently tied directly to your GreenStone account, select “Enroll Now” from mygreenstoneaccess.com. ■

This spring, GreenStone partnered with leading dairy expert, Dr. Marin Bozic, and hosted two free Dairy Revenue Protection (DRP) Analyzer Tool video webinars to provide dairy farmers with information on managing risk on their farm.

Each webinar was led by Dr. Bozic, a University of Minnesota assistant professor in dairy foods marketing economics and developer of Farm Credit’s DRP analyzer tool, who shared a market overview and provided examples on utilizing the tool. This analyzer tool is free for GreenStone DRP customers to help them protect against risk in the market. Producers who attended the live event were able to ask both Dr. Bozic and GreenStone’s team of DRP experts questions on how the tool could limit risk in their business and USDA’s policy changes.

If you are interested in watching the webinar to learn more about GreenStone’s DRP analyzer tool and how it can prepare and protect your farm, visit www.greenstonefcs.com/DRP. ■ Wheat & Crop Insurance Webinar To prepare growers for a successful wheat harvest, Michigan Agricultural Commodities, Inc. (MAC) and GreenStone teamed up last month to host a Maximizing your 2020 Season: Wheat and Crop Insurance Webinar on June 30.

The 90-minute video conference included industry experts from MAC, GreenStone and retired MSU Extension educators, covering topics such as Michigan wheat crop assessment, USDA pre-report outlook and ways to maximize your crop insurance. Growers who attended the live event were eligible for two Restricted Use Pesticide (RUP) credits for field and vegetable crops, 1A and 1B. If you were unable to attend the webinar and would like to know more, visit GreenStone’s Open Fields blog to view the recorded webinar at www.greenstonefcs.com/wheat2020. ■

Partners — Summer 2020

14

awarded to each organization as follows: $10,000 - Kids’ Food Basket $6,000 - Rural Health Initiative $4,000 - Foster Closet of Michigan Livingston County Kid’s Closet While the dollars donated to each organization through the Member Grown Outreach program make a positive impact in the community, with many families struggling due to the pandemic, the impact of this donation is intensified as more families and individuals are needing help than ever before. The organizations selected are each adjusting the ways they are helping and connecting with the community to continue fulfilling their missions.

GREENSTONE MEMBERS AND EMPLOYEES MAKE AN IMPACT! As a member-owned cooperative, GreenStone’s roots run deep, both in the agriculture industry and the rural communities we serve, and each year we contribute $20,000 to those communities through our Member Grown Outreach program. Dollars through this program are given to local organizations selected by both GreenStone employees and members that support the community and this year was no different; thousands of families throughout Michigan and northeast Wisconsin were helped through the donation.

The 2020 Member Grown Outreach program kicked off earlier this year with staff members nominating an organization they would like to see GreenStone represent. From these nominations, three final organizations were selected and

members were able to vote for one of the final organizations they wanted GreenStone to support: Kids’ Food Basket – Empowering communities to attack childhood hunger so young people can learn and live well.

Foster Closet of Michigan, Livingston County Kid’s Closet – Dedicated to taking action to assist individuals and families in need, at-risk, struggling, and/or facing a crisis in our community.

Rural Health Initiative – Bridging the gap between farmers and healthcare.

Member voting, which ran from Patronage Day, March 11, through March 31, determined how the $20,000 would be divided and after receiving nearly 2,000 votes from members, the dollars were

“Being able to support our community through our program is an honor, and knowing that both our members and staff play a role make it even more meaningful,” explains Melissa Rogers, VP of marketing and public relations. “While the dollars presented through the program go a long way in normal circumstances, this contribution couldn’t have come at a better time as each organization continues to serve the communities during the COVID-19 pandemic.”

GreenStone remains committed to members and our local communities and is honored to have played a small role in helping these local organizations serve our communities in a time unlike any other. We would also like to extend a thank you to all members who participated in the voting process- you each helped make this year’s Member Grown Outreach program a success!

For more information on GreenStone’s continuous support of agriculture and rural communities, visit www.greenstonefcs.com. ■

Mark Your Calendar...

JULY

14

15

AUGUST Michigan Livestock Expo (14-18) Branch County Fairgrounds, Coldwater, MI

Summer 2020 — Partners

20

Farmers Market at the Capitol State Capitol Building, Lansing, MI

SEPTEMBER

7

GreenStone is Closed In honor of Labor Day

GREENSTONE AWARDS UP TO $40,000 IN SCHOLARSHIPS GreenStone takes pride in investing in students interested in pursuing agriculture careers, and believes it is significant to the industry’s success. For a decade, GreenStone has been awarding $40,000 in scholarships each year to incoming college freshmen, presenting $2,000 to each selected student attending a four-year college program, and $1,000 to each selected student attending a two-year college program. Out of 80 applicants, 21 exceptional students were chosen for the 2020 scholarship. These students stand out due to impressive honors and awards, volunteer work experience, grades, and goals.

Scholarship awardee Madeline Gavenda states, “To me, being a GreenStone Scholarship recipient means being the future of agriculture. Not only do I personally feel lucky to have the opportunity to make a future for myself in agriculture, but I also feel extremely honored to be chosen for a scholarship from GreenStone based on my past achievements and future goals.

I am proud to represent GreenStone and agriculture as a 2020 scholarship recipient.”

(Find more scholarship recipient messages in “Candidate Comments” on page 18)

Katrina Salewski (Oconto, WI / University of Wisconsin-Stevens Point), The 2020 scholarship awardees are:

Madeline Gavenda (Elsie, MI / Michigan State University),

Addy Stuever Battel (Cass City, MI / Michigan State University)

Madelyn Cary (Alma, MI / Michigan State University),

Alexander Scovill (Laingsburg, MI / Michigan State University),

Marie Prodell (Algoma, MI / University of Wisconsin-River Falls),

Alison VanKampen (Zeeland, MI / Huntington University),

Megan Grusczynski (Gaylord, MI / Michigan State University),

Casey Stevens (Alpena, MI / Michigan State University),

Mia Vander Hoff (Hillsdale, MI / Michigan State University),

Eleanora Stoller (Lowell, MI / Michigan State University),

Paris Riggle (De Pere, WI / St. Norbert College),

Emma Schmidt (Bridgman, MI / University of Nebraska-Lincoln),

Rebecca Havelka (Wallace, MI / Michigan State University),

Emma Woller (Montague, MI / Michigan State University),

Savannah Siders (Mishicot, MI / University of Wisconsin-Green Bay),

Ethan Gilder (Hopkins, MI / Alma College),

Tyler Giddings (Wittenberg, WI / Northcentral Technical College)

Hailey Gaedtke (Luxemburg, WI / University of Wisconsin River-Falls), Grant Geiger (Ruth, MI / Michigan State University),

Applications for 2021 scholarships will be available on the GreenStone website in early 2021. ■

Jedidiah Kabara (Appleton, WI / Fox Valley Technical College),

Partners — Summer 2020

16

GREENSTONE INTERNS GREENSTONE’S INTERNS ARE WELL UNDERWAY IN THEIR POSITIONS, WITH A BIT OF AN ADDED EXPERIENCE THIS YEAR AS THEY JOINED THEIR TEAMS WORKING FROM HOME DUE TO THE COVID-19 PANDEMIC. TWENTY INTERNS HAVE BEEN QUICKLY ABSORBED INTO THEIR TEAMS AND ASSIGNED NOTEWORTHY PROJECTS, ULTIMATELY LEARNING MORE ABOUT NOT ONLY THEIR RESPECTIVE CAREER PATH, BUT ALSO THE AGRICULTURAL INDUSTRY.

17

Drew Cantrell Title: Appraisal Intern College: Northwood University Major: Finance Fun Fact: Drew enjoys being outdoors, watching sports, hunting, fishing, and boating.

David Doyle Title: Credit Intern College: Michigan State University Major: Finance Fun Fact: David enjoys spending time outdoors, kayaking, riding horses, and snowboarding.

Emily Kropf Title: Sales Intern College: Michigan State University Major: Agriculture Business Management Fun Fact: Emily is the president of MSU’s College of Agriculture and Natural Resources student senate and has been a photographer since 2015.

Hailey Andres Title: Graphic Design Intern College: The University of Michigan-Flint Major: Art and Design, concentration in Graphic Design Fun Fact: In Hailey’s free time she travels, hikes, spends time with friends and family, volunteers, and enjoys photography.

Summer 2020 — Partners

Jack Wilkinson Title: Business Intelligence Intern College: Michigan State University Major: Accounting Fun Fact: Jack loves playing video games, board games, and soccer.

Caitlyn Myers Title: Credit Intern College: Michigan State University Major: Actuarial Science Fun Fact: In Caitlyn’s free time, she rides and shows horses.

Channon Turrell Title: Credit Intern College: Michigan State University Major: Accounting Fun Fact: Channon has a deep agricultural background, including raising market lambs for her local 4-H county fair.

Stesha Payne Title: Crop Insurance Intern College: Michigan State University Major: Animal Science Fun Fact: Stesha enjoys spending time with her four-year-old daughter, two dogs, and two horses.

Charlie Hoch Title: Service Desk Intern College: Davenport University and Lansing Community College Major: Networking and Cybersecurity Fun Fact: In Charlie’s free time he enjoys playing volleyball, performing in theater, building furniture, and playing video games.

Jake Hood Title: Application Developer Intern College: Michigan State University Major: Computer Science Engineering Fun Fact: Jake loves cooking healthy meals, going to the gym, and building computers.

Jacob Gleason Title: Capital Markets Intern College: Michigan State University Major: Finance Fun Fact: Jacob plays intramural basketball and enjoys fantasy football.

Shania Luk Title: Information Services Security Intern College: Michigan State University Major: Computational Mathematics Fun Fact: Shania loves to bake and watch standup comedy shows.

Emily Portell Title: Crop Insurance Intern College: Michigan State University Major: Agriculture Operations Fun Fact: Emily kayaks, fishes, plays baseball, and restores antique tractors.

Sarah White Title: Public Relations Intern College: Michigan State University Major: Marketing Fun Fact: In Sarah’s free time she enjoys practicing hot yoga, going for runs, and spending time with friends and family.

Lauren Heberling Title: Appraisal Intern College: Michigan State University Major: Agribusiness Management and Food Industry Management & a minor in Sustainable Agriculture and Food Systems Fun Fact: Lauren loves to cook, bake, and ride/work on snowmobiles in the winter.

Amber Hignite Title: Compliance Intern College: Davenport University Major: Accounting Fun Fact: Amber is a full-time student and a mother of four.

“

Brendan Watson Title: Business Analyst Intern College: Michigan State University Major: Finance Fun Fact: Brendan loves to work out, play basketball, play videogames, and hike.

Erica Drobny Title: Human Resources Intern College: Michigan State University Major: Supply Chain Management Fun Fact: Erica is a member and president of the Michigan State Women’s Club Soccer team and plays intramural basketball and flag football.

Connor Nugent Title: Learning and Development Intern College: Cornell University Major: Agricultural Sciences Fun Fact: Connor’s hobbies include dairy judging, lacrosse, wrestling, playing fetch with his dog, swimming, and biking.

Hear from our interns!

“Working at GreenStone has not only given me the opportunity to gain valuable experience for my future career, but has also provided one of the most positive work environments.” – Shania Luk, IS Security Intern “I love working at GreenStone! I’m very excited to be able to work at GreenStone for a second summer. Not only do I enjoy my work, but also the people I work with.” – Caitlyn Myers, Credit Intern “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.” – David Doyle, Credit Intern “I enjoy working for GreenStone because everyone treats me like family. This experience so far has been wonderful. This is a perfect opportunity for me to further my hands-on skills in the agriculture industry.” – Emily Portell, Crop Insurance Intern ■

I am extremely grateful for the support of the GreenStone scholarship… This scholarship is going to help me further my passion for the agriculture industry. I plan to work part-time to fund my education, but the support of this scholarship means that I can focus more time on my studies. For that I am forever grateful. As I further my education in agricultural business, I plan to give back to my community and become a voice for many of the dairy farm families here in Wisconsin. I want to create a renewed passion for agriculture in the state of Wisconsin and in my community…

—Hailey Gaedtke, 2020 Scholarship Recipient

“

Taylor Workman Title: Credit Intern College: Dordt University Major: Agricultural Business Fun Fact: Taylor spends her free time working out, playing sports, finding new ice cream shops, and learning golf.

”

Thank you for your continuous support of the Great Lakes Regional Dairy Conference. As the next generation of dairy professionals, we sincerely appreciate the opportunity to learn from industry experts alongside dairy farmers across the region. We consider your support an investment in the future of dairy and look forward to returning it, with interest to the industry.

—2020 Michigan Dairy Ambassadors

“

I would like to extend my deepest gratitude for this wonderful scholarship. I understand that many individuals have applied for this scholarship and I feel extremely honored for this award This scholarship will set me up for success by giving me the much needed funds to pay for college. This means I don’t have to worry about paying back student loans or working more jobs to make the money to pay for college. In all, this means I can focus more time to concentrate on my education and my future after education.

”

— Jedidiah Kabara, 2020 Scholarship Recipient

”

...Candid Comments Partners — Summer 2020

18

Richard Dubke, Monroe Branch Financial Services Officer with 3 years of service How does your role at GreenStone tie into the YBSF Committee?

BEHIND THE SCENES– In this behind the scenes, two GreenStone employees share their work and passion to serve on GreenStone’s Young, Beginning, Small Farmer (YBSF) Committee.

Autumn Rector, Traverse City Branch Senior Credit Analyst with 11 years of service How does your role at GreenStone tie into the YBSF Committee?

As a credit analyst, I help customers determine what structure will best suit their operation. I analyze the loan options with their future goals in mind. This also allows me to see where some YBSF customers struggle to meet some of our loan standards or where they may need help preparing the documents that GreenStone needs in order to analyze their requests. In turn, this helped shed light on how GreenStone can be an even better resource by improving our program and processes to better serve YBSF customers.

What background do you have that gives you unique passion to support/assist YBSF? My husband and I are also YBSF. We consider ourselves first generation. We both grew up 19

Summer 2020 — Partners

in agriculture, but never had a farm to come back to following our secondary education. Going through the beginning stages of starting our own operation has really fueled my drive to help others as it has proven very challenging. You want to run before you crawl and it’s very hard to do.

The YBSF Committee has several work groups. What progress has your team made so far?

The work group that I am working with is diving into GreenStone’s YBSF program and redefining it. We are looking at how to improve the experience and what we can add to better serve this segment of our customers. There is much more to come, but at this point we are working hard to make internal improvements to make this a much better program for the future of agriculture.

What is your goal for the impact of your work with the group?

I hope to help others, who may be in the same shoes as myself, get the start they need

and educate them on how to take the next steps with their business. Agriculture has changed over the years and getting started from the ground up can be very challenging. I believe GreenStone can partner with these “up and coming” YBSFs to help agriculture be sustainable and to keep these YBSF customers moving forward —they are our future.

Share a YBSF customer experience that has stuck with you.

One in particular is a young man who has worked in agriculture all his life for a local farmer. His parents farmed part-time as they both had off-farm employment.

Together, this secured his passion for agriculture and it was very apparent. He began his own farm market, beginning small and came to GreenStone for his first loan, which allowed him to put in a well for irrigation and a green house. Each year he has continued to expand his market, offering more items and new experiences for the customer. I think he will continue to be a very successful operation and it is very exciting to see him grow each year.

As a financial services officer, we are always looking for ways to better help customers with the best products and services GreenStone has to offer. Being on the committee gives me a chance to help be a part of the development team, focused on new products and educational tools we can provide to help these farmers.

What background do you have that gives you unique passion to support/assist YBSF? I am in the same age group as those that are considered a “young farmer”. I think this helps me provide perspective on what other young farmers would like to see and how to relate to them. I grew up on a family farm and I’ve been around agriculture my whole life. Early in my career here at GreenStone, I identified YBSFs as the future of agriculture. I have written many first-time loans to young farmers just looking for someone to give them a chance.

The YBSF Committee has several work groups. What progress has your team made so far?

My work group has been involved in identifying organizations in the industry we can partner with to provide education and resources to their YBSF members. By sharing knowledge on basic farm financials and helping farmers understand what products and services GreenStone has tailored to their needs, we can help create even more beneficial partnerships with YBSFs. We have many relationships already, and have identified more possible partners where we believe we could contribute to an even greater impact.

What is your goal for the impact of your work with the group?

My goal is to work hard to provide knowledge and input to help make GreenStone’s YBSF program the best for our members.

Share a YBSF customer experience that has stuck with you?

I think all of them stick out to you in one way or another. Typically, I spend more time with the borrowers for these new relationships. You have to get to know them and get an idea of what they are wanting to do. Often, the plan they have is in their head and to them it all makes sense, they have a “vision”. The back and forth conversations with the customer allow us both to get it down on paper and really dig into the financial side of what they are looking to do. It is a good feeling when the deal comes together and you know you have helped someone finance their first farm, tractor, operating loan, or whatever they needed. It really sets a foundation for a long-term partnership. At the

GREENSTONE ELECTION RESULTS

same time, if we are unable to help someone at the time of their request, it is our job to explain why and help them understand what steps they could take to help themselves going forward. Sometimes for the YBSF, a “no” is the best answer, as long as you take the time to explain why and give them the resources they need to move forward toward a potential future “yes”.

GreenStone members recently elected four individuals to the cooperative’s board of directors, including three returning incumbents and one new board member: David McConnachie.

David McConnachie of Sanilac County, Michigan, was elected to a four-year term on the board representing the members in the association’s voting Region 2. A farmer for 44 years, David and his family currently work approximately 1,000 acres of wheat, sugar beets and dry beans on their farm in Deckerville.

How will your work benefit YBSF?

“GreenStone holds a lot of farmer capital; I’d like to use my experience to help set direction and policy to ensure that farm capital is preserved for future generations for all of agriculture, large and small,” says David. “The GreenStone organization is big enough that it can influence policies, and I’d like to enhance the effort to promote rural communities, so they continue to be a great place to raise a family.”

I will continue to seek out potential YBSF customers. I think when the YBSF workgroup completes the current priorities we’re focused on, GreenStone will have even more beneficial loan programs and educational tools for YBSF. We will be able to provide YBSF customers with an unmatched value.

McConnachie takes the seat of retiring board member Thomas Durand of Sanilac County.

The three incumbents re-elected to four-year terms include:

What do you enjoy doing in your free time?

• Region 1: Ronald Lucas, Alpena County, Michigan

In my free time I enjoy hunting, golfing, helping out on my family farm, and spending time at my family’s cabin in northern Michigan. ■

• Region 1: Peter Maxwell, Midland County, Michigan • Region 2: Scott Roggenbuck, Huron County, Michigan Additionally, GreenStone’s members elected 22 individuals to serve on the cooperative’s 2020 nominating committee. The nominating committee is comprised of GreenStone members from throughout the organization’s territory who are tasked with recruiting candidates for the next year’s board elections and nominating committee. The 2020 nominating committee includes:

Pause for Applause...

Region 1: Barbara Krupp, Saginaw County; Jeremy Werth, Alpena County; (Alternate) Eric Blaine, Saginaw County; Region 2: Michael Noll, Sanilac County; Timothy Ruggles, Tuscola County; (Alternate) Greg Ackerman, Tuscola County; Region 3: Mark Baker, Hillsdale County; Jeffrey Horning, Washtenaw County; William “Lyn” Uphaus; Washtenaw County; (Alternate) Thomas Schroeder, Hillsdale County; Region 4: Jason Scramlin, Barry County; Larry Walton, St. Joseph County; (Alternate) Bruce Butchbaker, Cass County; Region 5: Conrad Bovee, Gratiot County; Abraham Pasch, Isabella County; (Alternate) Keith Bouwkamp; Newaygo County; Region 6: Matthew Keilen, Clinton County; Bradley Ritter, Shiawassee County; (Alternate) Douglas Irrer, Clinton County; Region 7: Kevin Carlson, Marinette County; Jason Walechka, Kewaunee County; (Alternate) Aaron Behnke, Marinette County. ■

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.

July Barb Postma Sarah Morack Karen Messer

(5) (15) (25)

James Miller (10) Charles Neuenfeldt (15) Lori Leppek (15) Erica Norton (20)

August Amanda Kline Amber Romijn Kimberly Kurka Estelle Zoller

(5) (5) (5) (5)

September Jody Denor Jessica Hurd Sarah Hegerfeld Jan Weiler

(5) (10) (15) (20)

Now’s the time for you to consider being a part of your cooperative’s leadership. Submit your nomination to be considered for the Board of Directors and Nominating Committee: www.greenstonefcs.com/governance

Partners — Summer 2020

20

Part II GreenStone Turns 20 THE MERGER OF FOUR REGIONAL FARM CREDIT ASSOCIATIONS IN MICHIGAN INTO ONE ASSOCIATION IN JANUARY 2000, WITH THE ADDED MERGER OF THE UPPER PENINSULA AND NORTHEAST WISCONSIN IN JANUARY 2003, CREATED A DYNAMIC FINANCIAL INSTITUTION DEDICATED TO SUPPORTING RURAL COMMUNITIES AND AGRICULTURE. (READ PART I OF THIS JOURNEY IN THE SPRING 2020 ISSUE OF PARTNERS.) GreenStone President and CEO Dave Armstrong reflects on the last 20 years, and the milestone decisions that shaped the company and his vision of success.

When the four farm credit associations in Michigan’s lower peninsula merged in 2000 to become GreenStone Farm Credit Services and the addition of Northeast Wisconsin in 2003 each organization brought a strong culture of service to the new organization and that was to become the foundation of who we are today.

When you have people who have a servant’s heart with an affinity for rural communities and agriculture, it becomes a perfect match of cultures to carry out the Farm Credit mission.

The merger allowed us to build on that cultural foundation with a diverse set of business skills. Prior to forming GreenStone, we (staff and directors) had all been talking about the changes happening in the agricultural industry.

We were all observing it, but none of us had the scope, scale and ability to really tailor our products and services to the different niches within the general portfolio. The merger gave us that ability, and allowed us to segment our expertise and delivery services to provide better customer service.

For example, we didn’t just create a country living customer category, we actually developed specialized financial services officer positions to focus on these customers and become experts at the unique solutions they need. We developed a different set of country living loan standards, and we aligned new interest rates and programs specifically for country living customers. Before that, we had to push country living customers’ needs into our general farmer framework which didn’t fit their individual needs like our segmented program does today.

21

Summer 2020 — Partners

On the heels of doing this country living segmentation, our larger agricultural customers were evolving and had specialized needs that required us to customize underwriting as compared to smaller loans. These customers and their agri-businesses required more sophisticated financial management, which once we had in place, opened the door to new capital markets customers.

Our venture into capital markets and the employee expertise it has attracted continues to be a very rewarding decision for both the cooperative and our members.

Capital markets is currently experiencing a high rate of growth, which has helped to balance GreenStone’s overall growth and portfolio management, particularly in recent years when the agricultural economy has experienced greater challenges. Because of GreenStone’s segmentation, with a focused delivery structure is spread across traditional agriculture, country living and capital markets, it has helped diversify the company’s income stream and portfolio risk.

The merger made us the fourth largest Farm Credit institution in the System at the time, which gave us the scale to tackle this whole broad customer segmentation project all at once. It was the right thing to do, because we continue to see that the unique needs of all these different customers only continue to grow -- and we have continued to grow the staff and the programs right along with them.

Facing change as a team

The merger forced all the predecessor organizations to change compensation systems, workflows, products, training and reporting lines. There were teams we had to tear apart and reconfigure, and there were some competitive dynamics involved.

While everyone understood that the merger was the right thing to do, all of the human issues that go along with any big change were also real concerns for quite a while.

As a company leader, I tried to really listen.

Several of my direct reports had been in senior level positions at their predecessor associations, with a great deal of experience and success in their own right. I did my best to defer to their expertise, use as many of their good ideas as possible, and ask for their support and buy-in for what we needed to accomplish as a team. I really tried to make it a collegial effort; I did my best to make it about the team. That is still the model I encourage all new GreenStone leaders to continue to use today.

“

When you have people who have a servant’s heart with an affinity for rural communities and agriculture, it becomes a perfect match of cultures to carry out the Farm Credit mission.

”

The future of farming

GreenStone has been working very hard to help develop and support our young, beginning and small farmers (YBSF). As part of the Farm Credit System, we have regulatory requirements to meet the needs of this customer group, but with or without a regulation, we would be focusing on what we can do for YBSF because it is our future. It’s just the right thing to do to help educate them and get them started – not just for GreenStone, but for the sake of the industry.

The diversity of farmers is continuing to expand. The age is increasing and we just need more of them! The production practices vary and consumers are eager for choices, and plants and animals know no difference in ethnicity nor gender – GreenStone is growing and developing new ways to support them all!

The right direction

GreenStone has improved over the last 20 years. Over time, we’ve upped our game, grown market share, and have been recognized as a leader in the industry. The transition has raised the bar in terms of the people who now want to serve on the Greenstone board of directors to help lead us toward the next 20 years, which is reflected in a very talented slate of director candidates, year in and year out.

As part of the direction they provide to GreenStone’s leadership team, the board of directors is responsible for approving annual patronage payments to our cooperative members. In 2005, we started to consider ways to provide more value to customers, while retaining enough financial latitude in case the company ran into some tough financial years. We set the program up, almost identical to the way it’s done today, with initial patronage targets at a conservative 15% to 20% of our net earnings. We have been blessed to be able to bump that up over time due to strong financial performance, to where we now return up to 50% of our net earnings to our members! We still believe that is a sustainable model. Interest rates have dropped, and growth continues, even during the current pandemic; we are on track to return strong patronage payments to our members once again next spring. I can’t think of a more direct way to show our members the benefit of the merger just 20 years ago.

Partners — Summer 2020

22

“

We always look for opportunities to gain efficiencies that will help solidify our value proposition to our customers as a competitively priced, dependable lender, in good times and bad.

”

TOUCHPOINTS

Dave Armstrong: What I learned 20 years ago holds true today…

1) Farmers are the same wherever you go.

They are adaptable, and they persevere.

Farmers are smart, not afraid of hard work, and tremendously resilient, which I feel is key to our success and the success of the industry.

2) Change is hard. It was very difficult during

the merger and it is something we still experience when going through change, today.

Human nature has not changed much over time, however the pace of change has certainly increased.

3) Do what you say you’re going to do, when you say you’re going to do it. If your plans

change, call the person you were meeting, and make a new agreement. I’m a list-maker, very task-oriented. You know what needs to be done today to move the ball down the field for tomorrow, and you just keep moving. You keep blocking and tackling. You keep doing the little stuff, and you keep your word.

4) You don’t have to be big to be good. Even

Technology takes us forward

GreenStone was one of the very first in the Farm Credit System to have our own technology shop. We realized we couldn’t find the software and systems necessary to effectively serve our delivery needs, so we made the decision to hire technology developers and said, “look, we can’t find the platforms that will serve our process delivery needs, so we need you to create a proprietary product for us”. There was a lot of blood, sweat and tears for a while, but GreenStone is where it is today because of the decision to not let technology be the roadblock holding us back.

We have been able to develop customizable programs, products and processes, which has allowed us to do business the way our customers want to be served, instead of the way someone else’s system dictates. In addition, we soon got the attention of other associations and took another step to form collaborations to supply technology solutions to them.

Many of the basic things we do today are the same as when I started my career 40 years ago. We always look for opportunities to gain efficiencies that will help solidify our value proposition to our customers as a competitively priced, dependable lender, in good times and bad. But the technology-fueled efficiencies, like what our members can produce on an acre of ground today compared to 40 years ago, is unbelievable, just like the amount of loan volume each employee can service – with the same customerfocused relationship - is really unbelievable.

Of course, GreenStone’s growth over the last 20 years is not strictly about technological innovation or portfolio diversification. These are just a few examples to emphasize what is ultimately behind our triumphs. Our success is due to our ability to adapt, seize upon, and use proven technologies without compromising what got us to the dance in the first place: our people, our culture and our four core company values.

23

•Customer First

•Deliver Quality

•Get Involved

•Do the Right Thing

Summer 2020 — Partners

if you’re a smaller organization, you choose to run your operation a certain way to achieve necessary efficiencies. The bottom line is the value that you produce, and there’s more than one way to do that. GreenStone is now the seventh largest Farm Credit association, yet we are one of the leading associations across the nation, ahead of some much larger associations, in terms of our efficiency metrics. I feel good about that because it tells me our business model does a good job of paying attention to our cost of delivery, while providing service to our customers and fairly compensating employees.

5) Technology is our future. If we think it

through, and we leverage it in a thoughtful way, technology can be a game changer – which our farmers are learning every single day (and probably faster than we are). I want to continue to implement the use of technology to get more efficient and to provide much better service to our customers.

6) The most important thing in this business is our relationships with our customers. As

important as technology is, I don’t ever want to lose the human touch that we’ve brought to this marketplace. I don’t want us to become just another app on your phone. I want people to still be able to call and talk to a human being. The money that we lend, the profit that we earn and the patronage that we pay is just how we keep score. It’s the people that matter. ■

“The mentees pushed and gave me energy‑ ­they helped put a little more wind in the sail again.”

“You get out of the program what you put in; your success in the program is truly dependent on what you put in!”

“Our families were both involved in our mentorship; we brought our three kids to their farm and both our mentor and his wife would visit us.

Farming is a family business and it was nice to have that in the program.”

FARM FORWARD MENTORSHIP: NEW PROGRAM STARTS THIS WINTER! GreenStone’s focus on providing the next generation of agriculture with the resources necessary to succeed in today’s economy extend past our financial products and services. We believe that providing young, beginning, and small farmers with the right knowledge and learning opportunities will empower them, helping both them and their farms succeed.

Often, the best way to gain this crucial knowledge is from someone who has years of learning and wisdom. With this in mind, GreenStone created the Farm Forward Mentorship program to connect young, beginning, and small farmers with individuals who have industry knowledge and farming experience to share.

Through this 18-month mentorship program, participants are paired with a mentor or mentee with similar farming goals and are guided by a professional business coach. The program begins with a day of training and includes several coordinated conversations to strengthen

the relationship between the participants paired. Mentors and mentees have site visits to each other’s farms and are encouraged to meet one-on-one several times throughout the year.

Value to Mentee • Gaining broad knowledge of industry dynamics and practices • Networking with key industry contacts • Understanding today’s agriculture business model Value to Mentor • Satisfaction of helping and teaching the next generation • Learning new ideas • Gaining experience in the art of mentorship Some key areas the program focuses on are creating an effective business plan, managing risk, utilizing resources and overseeing day-to-day operations.

Additional networking and educational

events are available for participants and in the past, both mentors and mentees have benefited from the program by gaining a new perspective. Though these relationships will last long after, the official program will conclude with a group celebration event at the end of the 18 months.

Ready to join?

GreenStone is now seeking participants for the 2020-2022 Farm Forward Mentorship program that is scheduled to begin this winter. If you are interested in learning alongside an experienced mentor or would like to use your wisdom to positively impact a young, beginning or small farmer, let us know! ■ To find out more information and to signup to be a part of the program, visit www.greenstonefcs.com/mentorship or email us at marketing@greenstonefcs.com.

Partners — Summer 2020

24

The GreenStone Story:

Growing Farmers YOUNG, BEGINNING AND SMALL FARMERS (YBSF) ARE A FOCUS FOR GREENSTONE FARM CREDIT SERVICES, AND ENHANCING PROGRAMS TO ASSIST NEW PRODUCERS GROW, LITERALLY AND FIGURATIVELY, IS ONE OF GREENSTONE’S TOP PRIORITIES FOR 2020.

Initiated by the Farm Credit Act and embraced by GreenStone, our YBSF program offers loans, grants, mentorships and educational resources to eligible farmers in one or more of these groups: • A young farmer is one who is 35 years of age or younger • A beginning farmer is one who has 10 or fewer years of experience • A small farmer is one who generates less than $250,000 in annual gross sales from production agriculture

25

Summer 2020 — Partners

GreenStone’s YBSF framework of support has been in place for decades, and is being amplified with the help of a team of sales, credit and marketing staff from across the cooperative’s territory, referred to as the YBSF Champions Committee. With goals focused on improved resources, greater awareness, and stronger support for our YBSF in Michigan and northeast Wisconsin, the committee is eagerly researching solutions and implementing enhancements.

“The young, beginning and small farmers are so important to us,” says Ann Allen, GreenStone regional VP of sales and customer relations. “We value all of our customers, but ensuring that this next generation of farmers is successful is also important for the future of farming.”

Ann, one of three co-chairs of the Champions Committee, emphasizes that GreenStone develops strong partnerships with both existing farmers and those with diverse interests. Nurturing the growth of new farmers is strongly supported by the cooperative’s leadership and board of directors, as representation of the company’s mission to “create long-term relationships with our members that have a lasting, positive impact in their business and personal lives.”

The current YBSF program not only includes financing options, but programs such as the Farm Forward Mentorship and Grow Forward Grants, and is geared toward educational opportunities through workshops and manual field experiences.

Financing the Future

For over 100 years, we have been committed to helping farmers of all backgrounds and production practices establish a successful and sustainable operation by offering specialized loan programs with unique lending standards.

In addition, with flexible underwriting standards and in conjunction with the Farm Service Agency (FSA) programs, GreenStone can often provide financing for property, farm equipment, and operating needs for young, beginning or small farmers in unique circumstances, who may need individualized assistance with their business.

Recognizing these farmers have just as much passion as the experienced producer, just not necessarily time or scale to their benefit, GreenStone serves the unique needs of these customers focusing on their abilities, planning, knowledge, and business management aptitude.

Farm Forward Mentorship www.greenstonefcs.com/mentorship

The mentorship program helps young, beginning and small farmers gain broad knowledge of industry dynamics and practices by matching a YBSF with an experienced farmer in an 18-month cohort program facilitated by professional business coaches.

Cindy Birchmeier, Champions Committee co-chair and GreenStone vice president of credit, feels experienced farmers are key resources for the agricultural industry and acknowledges that a generation of knowledge could be lost without a

structured network – like the mentorship program – to transition information from farmers with years of hands-on experience, to new farmers starting a business.

“In agriculture, farmers must be well versed in a number of different trades — it’s not only planting or harvesting or milking cows. There’s so much more to farming, from both a financial and production management standpoint, and that transfer of inclusive experience is an invaluable piece of what the Champions Committee is trying to help GreenStone’s YBSF program accomplish,” says Cindy.

“At its heart, a mentorship is really about partnership, and sharing wisdom.”

Grow Forward Grant www.greenstonefcs.com/grants

GreenStone’s Grow Forward Grants provides $40,000 annually to YBSFs to help pay for educational resources and services to expand their knowledge in areas important to the success of their farm business (up to $1,000 per customer, non-customers are eligible for up to $500).

Grants are awarded for use within one of the following categories: • Agricultural programs or events • Educational course, program or conference • First time use of GreenStone’s accounting and tax services • Non-GreenStone farm business services and consultants “Continued education and handson experiences are crucial in both personal and professional growth,” says Amber Echlin, GreenStone public relations specialist. “To support farmers’ participation in these learning experiences, our grant program reduces financial barriers so growers can focus on strengthening their skills and ultimately their farm’s success.”

Amber, the third co-chair of the committee, assists with the grant application process.

Of the $40,000 committed annually to farmers through the Grow Forward Grant program, there remains several thousand dollars available to new applicants this year.

“We would love to see more young, beginning and small farmers take

advantage of this incredible opportunity as they identify new learning opportunities and events that would benefit their farm management. We want to continue helping the next generation of agriculture succeed!”

GreenStone’s outreach extends beyond grants, and benefits YBSF through partnerships and financial sponsorships of young farmer conferences with other organizations. GreenStone hosted YBSF seminars, and provided youth program support, higher education scholarships, and many more partnerships.

Future Forward

GreenStone’s YBSF program may be getting a refresh from a dedicated team, but the focus continues to be led by each and every employee who all care deeply about helping this next generation of agriculturalists thrive in today’s economic environment.

“YBSF is part of Farm Credit’s mission,” says Cindy. “We have a lot of ‘boots on the ground’ employees who have actually come up through the program themselves.

They have their own operations, and they have been true young, beginning and small farmers, which adds a lot of value to the evolution of the program.”

While the YBSF focus has been a part of GreenStone’s foundation for over a century, the committee is working to build an even better structure to support members into the future with emphasis on providing vital programing, opening networks with aligned organizations, and utilizing staff expertise to embrace alternative lending solutions.

“We know our YBSF customers are hungry for information,” Ann affirms. “Our time spent with customers and feedback from mentees confirms they are looking for support in both business and financial planning. We want to make sure they have all the educational pieces to launch their agribusiness – from knowing how to supply a lender with a balance sheet, to tax returns and even completing a business plan.”

“We’re going to continue to strengthen, capitalize and expand the program to benefit more participants,” Ann comments.

“We work with young, beginning and small farmers every day who put their blood, sweat and tears into their farms. Our support matches that passion.” ■ Partners — Summer 2020

26

Directors’ Perspective– Planning, Prioritizing, and Outlook HOW ARE YOU PLANNING TO INSPIRE, GROW AND IMPROVE YOUR PERSONAL LIFE AND BUSINESS IN 2020 AND BEYOND? HAD THIS QUESTION BEEN ASKED OF THESE FOUR DIRECTORS A FEW MONTHS EARLIER, THE ANSWERS MAY HAVE BEEN A LITTLE DIFFERENT. TRUE TO A FARMER MINDSET, THE REALITIES OF 2020 HAVE ADJUSTED THEIR PLANS, BUT THE OUTLOOK REMAINS GROUNDED AND LOOKING AHEAD TO THE FUTURE.

Laura Braun

Growing up, I was blessed to have all four of my grandparents in my life. In fact, I was twenty years old before losing the first of them. Because of this, making sure my grandchildren know me is a priority in my life. This is one of the reasons I choose a healthy lifestyle. Making right food choices, maintaining a healthy weight, getting regular physical exams, and staying active are important steps in making sure I will stay healthy and fit as they grow up.

Another priority for me was to make sure my children, all six of them, grew up knowing they could choose any path they wanted for their lives, including working with us on the farm. One of my daughters is a physician. One is a successful land surveyor with licenses in over twenty states. Another is a passionate teacher of seventh grade science.

Recently, after going off for several years to work at another farm, our son decided he wanted to come home and join our operation. Just as we were settled into one plan for our farming operation’s future, it was time to change course. We were so happy to hear this news, even though it would require us to make a plan for greater growth. Several factors placed us in the solid financial position necessary to take on this new adventure. These factors include strategic marketing, sustainability practices, and a relatively conservative business philosophy.

It has been an extraordinary experience to serve on the GreenStone board and to participate in the decisions that have made the association a strong and nimble financial partner through the changes not only in my operation, but in the grander scheme. As we have seen in recent events, the old Hebrew saying is true: “man plans and God laughs”. But because GreenStone has a strategic plan based on solid priorities, while not always easy, it is more than possible to move through uncertainty and capitalize on new opportunities.

View Laura Brauns profile video: www.greenstonefcs.com/LauraBraun

27

Summer 2020 — Partners

Terri Hawbaker

As much as we try to implement future plans for our businesses, the first six month of 2020 has proven that even with the best of planning, there are going to be situations that arise that throw us off course. As farmers, these are the times we use what we have learned from past challenges to mitigate the future, sometimes one day at a time.

A saying I use often is “don’t be a dead squirrel”. It is very important to not remain indecisive – make the best choice possible and follow through.

We began 2020 with a pep in our step for the new year; with 2019 behind us, it would surely be a better year. As we now know, that is not exactly what happened; but what did happen has

given us plenty of opportunity to grow, personally and professionally.

On our farm, family is second to God only. As I plan for the future, I plan with them in mind. What choices should I make, right now, to keep us viable, not just for today, this week, this month, this year, but for years after that? I am careful to keep an open mind. As business owners in an always-changing world, it is key to not get stuck in our ways. As they say, “don’t have all your eggs in one basket”. Seemingly somewhat simple decisions can be key in navigating unseen circumstances.

I believe the past six months has opened incredible opportunities to teach, inform, and grow relationships with consumers in the non-agricultural sector as they consider other sources for food, including directly from the farmer. There is a new level of appreciation for food and farmers.

We can use these opportunities to build awareness and support in many of the social areas where our farmers are challenged.

As a director on the board through the pandemic, I have seen how valuable it is to plan ahead for emergencies, even those that seem like they would NEVER happen! I am very proud of our executive team for executing the plan as thoroughly and efficiently as they did. I think we could all benefit from a little more planning, not just for the growth of our family and farm, but for scenarios that may seem a little farfetched. 2020 has proven anything can happen.

Many blessing for the remainder of 2020. We may not have had an excellent start, but we can have an excellent finish.

View Terri Hawbaker’s profile video: www.greenstonefcs.com/TerriHawbaker

Jed Welder

Troy Sellen

If the first half of 2020 has taught us anything, it likely would be a reminder that we don’t know what tomorrow will bring. I can appreciate the similarities between GreenStone and our home operation in these trying times.

Board conversations run very parallel to those on the farm: Assess risk. Assess opportunity.

Build a strategy that aligns with your long term business mission. Execute it.

For our farm operation, this has caused our focus to shift from growth and development to balance and stability. We’ve redistributed some of our concerns from things we cannot control and put more consideration into both short-term and long-term marketing plans. Short term investments have been reevaluated as to how they impact our long-term vision, which is the only facet of our farm operation that we will not waver from in light of 2020’s numerous challenges.

This year, we’ve been inspired to revisit and enjoy the “family” part of “family farm”. Don’t get me wrong – there will be plenty of sweat equity poured into our operation in 2020 - but we’ve come to realize growing and maintaining relationships is just as important. These relationships serve to support and ground us when the stress gets to be overwhelming. It has been suggested to worry less and live more in the moment. This is a well-intentioned but futile suggestion to any farmer. After all, if it wasn’t for worrying, we’d have to find a new hobby!

View Troy Sellen’s profile video: www.greenstonefcs.com/TroySellen

The one thing a farmer always looks for is predictability. My dad always says, “I like my equipment and my children predictable...” So far 2020 has been anything but that!

However, it has given us an opportunity on my farm to shed some of the distractions and focus on what matters. For us, that is family, farm and faith.

As so many organizations and events in our area choose to temporarily shut down, life on the farm has continued – our crops have been planted, our kids have continued to learn, and we have gained new insight that our faith is not bound by the walls and roof of a church building that has been closed since March.

It’s also been great to see organizations like GreenStone adapt and prosper despite every obstacle thrown in our path. While we can’t predict what the future brings, we know that with challenges and difficulties comes opportunities for our families, our farms and our faith. ■ View Jed Welder’s profile video: www.greenstonefcs.com/JedWelder

Partners — Summer 2020

28

Legislative Matters:

INDUSTRY CHALLENGE OF MICHIGAN NPDES PERMIT MANY OF YOU MAY HAVE SEEN THE ARTICLES IN THE MICHIGAN FARM NEWS REGARDING THE COLLABORATIVE INDUSTRY EFFORTS THAT HAVE BEEN UNDERWAY FOR MONTHS EVALUATING THE MICHIGAN DEPARTMENT OF ENVIRONMENT, GREAT LAKES AND ENERGY (EGLE) REVISED NATIONAL POLLUTANT DISCHARGE ELIMINATION SYSTEM (NPDES) REGULATORY PERMITS, WHICH HAS NOW RESULTED IN AN ADMINISTRATIVE ACTION TO CHALLENGE THE REQUIREMENTS OF THE PERMIT PROCESS.

management is not core to our service proposition, so being named to challenge the permit process was not essential or helpful.

GreenStone has been supportive, at the table from the beginning, and contributed significantly, which has all been appreciated by the industry.

Further steps may be necessary to pursue additional remedies in this matter. This may include a complaint filed in the Michigan Court of Claims before the mailing of this publication. Filing that complaint is dependent on how the State of Michigan responds to the administrative action.

Generally, the revised NPDES permits are being challenged for weak or absent connections to science-based environmental benefits, while also ignoring basic agronomic management principles.

GreenStone has been involved in the Michigan Farm Bureauorganized Steering Committee and has worked closely with the named organizations in the filing.

The action taken to be engaged and to challenge the permit process was thoroughly examined and discussed by your GreenStone board of directors. While there was hope an administrative challenge would not be necessary, the agricultural industry along with a majority 29

Summer 2020 — Partners

of the registered confined animal feeding operations (CAFO) felt there was no other option at this time. Steps are being taken to connect with the rest of Michigan’s CAFOs to include their voice with the initial large number of named CAFOs in the action.

Often is it hard to get every sector of agriculture to agree on difficult subjects, but while there are minor nuances in the complexities the permitting process presents, challenging EGLE is a widely agreed essential next step.

As GreenStone supports the industry through the Steering Committee analysis, it is also supporting the related legal work financially. Together with Michigan Farm Bureau’s

organization and financial leadership, additional financial support is coming from the named CAFOs in the suit, as well as the commodity organizations identified.

GreenStone understands the importance of being a team player in the agricultural industry endeavors.

Supporting these important actions with financial contributions was essential to the teamwork.

Aside from the financial support and active engagement with the committee, GreenStone determined it was not necessary or relevant to be included as a named plaintiff in the administrative action at this time. Agronomics

Additionally, preparing to educate legislators and government regulators on the economic damage the current NPDES requirements will have on the industry will be important. GreenStone has the expertise and experience from its members to aid in that effort. The effect of these permitting rules has broad economic impact on all of agriculture and engaging as a team to challenge the fairness together is important to who we are as a cooperative.

It is important that you know that we are engaged and supportive. ■

PAC Progress:

In the event there is an in-person fundraiser, many precautions will be taken.

All in-person fundraisers will coincide with all social distance practices. As of now, this includes 50% capacity in all enclosed buildings, six feet of separation between people, and facial coverings when appropriate. Elbow bumps will replace handshakes, so keep the elbows sharp if necessary, to make the point.

While different, we do not expect this to be a major inconvenience in the education process.

It also should be mentioned that more creative venues like outdoor spaces have been trending as it allows for more space and safety. Frankly, this should make a meeting more focused on our issues as we could be in an area that farmers work in – outside.

Legislative in-person fundraisers are now being scheduled for later this summer / early fall, and most people seem to be holding out to participate then rather than stepping into the technology driven remote meeting options. When looking at the Legislative body, the Michigan House GOP have hosted in-person fundraisers in recent weeks and will continue to do so, as has the Wisconsin GOP. There have even been House Democrats in both Michigan and Wisconsin that are beginning to do the same.

EDUCATION OF OUR POLITICAL LEADERS Various legislators, their staff and other important stakeholders remain critical as agriculture evolves in a changing world.

If nothing else taught us how important the work is of growing food and fiber to meet the needs of the world, the COVID-19 pandemic certainly triggered a keen awareness of the essential nature of what happens in agriculture and the rural communities supporting these operations.

Education is critical.

How the education gets delivered may change a bit, but it will still be necessary to couple it with fundraising. The Farm Credit System plays an essential role in delivering not only capital financing, but also the education of the policy makers on the overall value proposition of agriculture.

Changes in practices to provide this knowledge are now being considered.

Fundraising will be different, and certainly less will be in-person during the short term. Use of Farm Credit PAC, the MI GreenStone PAC and the Wisconsin Farm Credit PAC proceeds will continue to be delivered during these important election cycles.

Online fundraisers by legislators and how they function in terms of interaction will likely be a more normal occurrence, even though they will not be as impactful as an in-person meeting. In past virtual receptions, the multi-client government affairs business will be the moderator and parcel out one-on-one time within the virtual video technology with the legislator.

Individual, remote scheduled sessions will likely be preferred, not only by the legislator but by the constituents.

However, until people get comfortable with being in the same room together, nearly every legislator is open to a virtual “check presentation”. This may be a good way forward not only now, but in the future, as it provides exclusive insight between a constituent and legislator with an opportunity to keep it personal and professional.

Regardless of how the education happens, it has to happen. Without education of policymakers and their teams, we remain susceptible to decisions made without full consideration of the realities of agriculture and our rural communities. GreenStone remains committed to the mission of supporting its cooperative members everyway possible, including educating the people making important decisions that affect our lives and families. ■ Partners — Summer 2020

30

LIVE

A NEW BEGINNING

Images courtesy of Donna Hein

CRAIG AND LORI OAKASON WERE READY TO TAKE RETIREMENT AND TURN IT INTO A NEW BEGINNING.

31

Summer 2020 — Partners

➡ Left: Craig and Lori Oakason with their family. Both of their sons, with their daughters-in-law and seven grandchildren, also moved to Wisconsin to be together. ➡ Right: Lori sells heirloom plants out of her greenhouse on the farm and attracts customers interested in healthy eating.

Lori left her corporate job, and Craig, a Vietnam veteran, left the local police force after 21 years as an officer in Sandy, Utah.

After hunting for affordable property to grow a bigger garden and raise a few animals, the Oakasons loaded up their household to embark on their next adventure as owners of a 7.25-acre hobby farm in Manawa, Wisconsin.

They arrived on their new property in April 2018, one day before a record-breaking blizzard blew in and stayed for days. This was followed by a summer with temperatures that soared above 90 degrees for several weeks – which was followed by a frigid vortex winter.

Not to mention the tornado.

as you don’t ‘retire’ to a farm. But anyone could do what we are doing, as long as they work within their limitations. I can always back off if there’s more than I can physically deal with.”

Craig and Lori started with one kitchen garden that has expanded to about two acres of produce, which they sell at a market stand right on the farm.

Lori traveled extensively in her previous corporate position, and gardening was (and still is) her stress relief. A certified master gardener in Utah, she is generous with her knowledge and teaches local gardening classes in the Manawa area.

“I don’t have the ability to physically work the big farmers’ markets, so we keep it very local under our “Oakwoods Farm - Organic Produce” banner,” Lori explains.

“Everything from heirloom seed-saving to canning produce,” she adds. “Craig and I would like to renovate the old schoolhouse that came with our property, and invite families and home school groups to join us for a hands-on ‘Little House on the Prairie’ type of learning experience.”

Lori sells heirloom plants out of her greenhouse on the farm, following her affinity for non-GMO, non-hybrid plants. She believes heirloom vegetables have more flavor, more nutrition and fewer issues, especially when growing plants that were historically produced in the area. The Oakason’s farm is totally organic and the produce is grown without spraying commercial pesticide.

“We were told ‘well this is a first, this never happens’ a lot,” Lori says with a smile. “Although, I admit there are weather positives in this area for growers. Utah’s a very dry state, so you have to irrigate or water everything. Here in Wisconsin, God does it for you in the air!”

“We’re seeing really young families come to the farm for the plants and the vegetables. They’re wanting to learn how to grow a little bit of lettuce or zucchini, knowing they might not be saving money but happy they’re eating healthy.”

“

The most gratifying part of this farm for me, is sharing it with our grandkids...

”

The Oakasons lived in a trailer for seven months while they fixed up the 100-yearold farmhouse and readied the property for produce, Nigerian dwarf goats, chickens, ducks, geese, guineas, rescue turkeys and heritage pasture pigs. Both of their sons, daughters-in-law and seven grandchildren also ended up moving to Wisconsin and living nearby, so Craig and Lori had some help making improvements. “Having the family near to enjoy each other and watch the grandchildren grow was definitely a plus,” says Lori.

Both Craig and Lori have some physical restrictions from old injuries which occasionally make farming harder than usual. “I can die happy, covered in dirt in the middle of my yard or delivering a baby goat,” declares Lori, who adds that she’s never been good at accepting restrictions. “Or, I can listen to friends who say, ‘you can’t keep doing that’.

“Well, you can! It’s never too late. It’s kind of like us retiring to this farm. I know that’s an oxymoron

Partners — Summer 2020

32

➡ Right: The grandchildren consider the farm their second home and enjoy gardening, feeding chickens and playing in the fields.

The Oakasons also have several farm-raised Heritage Berkshire pigs that are allowed to roam a pasture, which is how they swiftly learned the need for better fencing. Luckily, Craig is a jack-of-all-trades and prefers to save money by performing most work himself, with the right equipment.

In addition to home site, farm and vacant property loans, GreenStone provides loans to hobby farmers for items like tractors and fencing.

“We talked to a couple of traditional banks when we first found the property,” says Craig.

“One bank began the loan process, did the survey and stopped cold when they realized it was a farm.

“Luckily, we began working with Senior Financial Services Officer Ann Klemp at GreenStone. Ours was not a big loan, but Ann was helpful, personable and saved us from a major delay by catching an issue with the survey before our signing. I was also very impressed when she called to tell me that interest rates had gone down and that she could lock us in at the lower rate.”

Ann is enthusiastic about working with the Oakasons. “It’s always a pleasure to talk with Craig and Lori and find out what they’re doing,” she responds. “They have a vision of what they want their farm to be, and they keep taking steps to make that vision a reality.

They appreciate the history of their property,

i

and I can’t wait to see the old schoolhouse when they’re done with it!”

parties, and Lori and Craig hope to someday pass the farm on to their sons.

As member-owners of the GreenStone cooperative, Craig and Lori appreciate the sense of community they feel by being part of a financial institution that partners with its customers.

“The most gratifying part of this farm for me, is sharing it with our grandkids,” comments Lori. “They love it. Last summer, way out in the back field, spring wildflowers were everywhere, and the grass was kind of deep. And I see the two- and three-year-olds grab hands with the five- and seven-year-olds and call to me, “Come on, MeMaw! We’re going on an adventure on our farm!”

“It’s given us a circle of support here in Wisconsin,” Lori admits. “And receiving an annual patronage check from GreenStone has been amazing!”

The Oakasons have plans for improving the buildings on their property, and eventually building a single-level home. Family and friends enjoy using the farm for holidays and birthday

This is something that Craig and Lori clearly understand and appreciate: you are never too young or too old for a good farm adventure. ■

COUNTRY LIVING – OPEN FIELDS BLOG BRIEF

GreenStone publishes regular updates on our Open Fields blog. Check out some of the posts you may have missed at www.greenstonefcs.com.

Does GreenStone Finance Part-time Farms?

What you need to know about making your small farm dream a reality!

What’s in Your Basket?

Looking for fresh farm produce near you? Here’s where to find it, when to buy it and how to cook it!

33

Summer 2020 — Partners

Third-grader Donates Steer to Feed Over 1,000 Hungry People Oliver Hill, a third-grader, led by example. Noticing the pandemic left families hungry in his community, he decided to forego the livestock show and donated his steer to help those in need. ■

Image courtesy of Katherine Leventis, “Lake Michigan”

PHOTOGRAPHY WITH YOUR PHONE THESE FIVE TIPS ARE DESIGNED FOR THE CAMERA MOST PEOPLE REFER TO AS THEIR CELLPHONE, BUT WORK EQUALLY WELL WITH A TRADITIONAL CAMERA. Staying close to home this summer? Whether you choose to travel or not, photography can give you a whole new perspective on your own familiar world. Looking through the lens of a camera forces you to notice the details of people, pets and places you see daily and take for granted – and how you catch them posing or in action can make a personal creative statement.

1. Unless it’s a shot of an outdoor landscape, most photos benefit from getting near enough to the subject to eliminate a lot of distracting background. If possible, you want to move yourself closer to your subject and avoid zooming in as that will lower the resolution of the photograph drastically (and make your photo appear fuzzy if you attempt to print it at a larger size).

2. Take many photos of your subject; chancing it to one or two shots could leave you with a photo of someone who closed theirs eyes when you clicked the shutter, or someone who moved and blurred the frame. Digital cameras and phones allow you to take hundreds of pics, which you can easily save, send or delete. However many photos you snap, you will want to periodically clear your unwanted photos off of your phone or camera as they take up storage space.

3. Most good photos can be made much better with a little editing! You can brighten, crop, and add filters to a

photo from within your phone, and you can use a photo app to add text and special effects. Editing tools train you to improve your photographs; eventually you start arranging or correcting a photo as you look through your camera lens before you even take the shot.

4. S hould your photo be taken vertically or horizontally?

Pay attention to what you are shooting and what you want to fit in the frame. Choosing to use vertical or horizontal to complement the image is an easy way to enhance your photo, and if you are not sure which way works best – or how you’ll use the end photo - try both!

5. N atural lighting may be the most important component of a great picture, especially those taken on a cellphone. Avoid flash photography when possible as it can wash out the color that should be in the photo.

The very best outdoor lighting is a slightly overcast day, or the soft light that professional photographers refer to as the ‘golden hour’ (the period shortly after sunrise or before sunset).

Cellphones give you the opportunity to have a camera at your fingertips nearly all the time. The benefits?

Simply, the more photos you take, the better you’ll get at photography – and with that, the better you’ll be at capturing the important stories waiting for you in your own backyard.

Partners — Summer 2020

34

SUMMER TRAIL CAM PLACEMENT

By Jordan Browne, Michigan Out of Doors TV Over the last decade I’ve become obsessed with trail cameras. What started out as a hobby has turned into a passion for capturing all kinds of wildlife in their natural habitat.

Believe it or not, the first trail cameras I purchased actually had film in them! The position and location of your camera was crucial, as you would only get 24-36 pictures per roll. Nowadays, you can capture 4K video and tens of thousands of still images on a single SD card. While this makes things easier, the location of your camera is still vital.

Finding the right location to set up your trail camera during the summer months can be tricky. Long, hot, and humid days often result in very little deer movement during daylight hours and can complicate the process of getting the picture or video you’re looking for. Deer often spend their summers in different areas than where they will end up living in the fall. So why bother putting up

35

Summer 2020 — Partners

cameras this time of year? In my experience, many of the bucks you get pictures of in the summer are likely to show back up during deer season. It might only be for a day or two but if it’s the right buck, that can be all the motivation you need to get out of bed in the morning. As a result, I’ve started to put more emphasis on my summer trail cams.

I like to focus on two areas when it comes to setting up trail cameras: food and water. Deer spend most of the summer trying to put on weight and use very little energy. In short, they eat a lot and move a little. If you’re hunting a farmed area, look for access points between the crop fields and the closest bedding area.

Deer will cycle on and off different crops throughout the summer and odds are at some point will visit your area. If you’re not hunting near a farm, try to find the areas with the most natural browse and focus your efforts there. As it gets later in the summer, deer start to look

for acorns and shift in that direction.

A good water source can provide a great opportunity for trail cam placement as well.

Small water sources are pretty straightforward but if it’s a large water source, like a river or a stream, look for shallow areas where deer like to cross. Deer also seem to be drawn to areas with sand during this time and will often bed on the sand during the dog days of summer.

The deer in your area will be visiting a water source everyday. If you can get a camera on the right one it can be a great way to get an inventory of the bucks in your area.

At the end of the day, a trail camera doesn’t do you any good sitting inside. With a little extra effort and planning, you just might get a picture that could change your entire season! ■ The opinions stated herein are not necessarily those of GreenStone Farm Credit Services.

HEALTHY SUMMER SNACKS FOR LITTLE NIBBLERS SO MUCH FRESH FOOD. SO MANY PICKY EATERS! Summer in Michigan and Wisconsin means an abundance of produce fresh from the field. Seasonal greens, asparagus and strawberries first appear in grocery stores, followed swiftly by more fruit and veggies via farm markets, farm stands, subscription deliveries and U-pick field and orchard operations.

It’s a fresh food wonderland for those of us who have been waiting all winter and spring for the amazing taste of seasonal produce. Yet it’s not so thrilling for some children who prefer their produce labeled as “Fruit Loops” or “Popcorn”.

What can parents do to help their children learn to appreciate healthy food?

Start with snacks, and try a variety of introductions.

Fake it. Fresh green beans, cooked or raw, may underwhelm a child used to snacking on a drive-through Happy Meal. Green beans that taste like french fries have a much better chance at being nibbled. This simple, 3-ingredient Green Bean Fries recipe uses whole green beans and is easy enough for a preschooler to help prep, alongside mom or dad. View recipe at: https://www.theleangreenbean.com/green-bean-fries Hide it. Fruit is usually an easier sell. Blueberries, at their peak in July, can be frozen for quick bite-sized snacking straight out of the freezer. To get a little fancy, use fresh

or frozen apples, bananas, peaches, strawberries and vanilla yogurt to create a summer fruit smoothie -- and no one will know if the chef sneaks in a handful of fresh spinach, cauliflower or squash to balance the nutritional element. Resist adding too much of a good thing; small children can scent out a vegetable in their glass or on their plate from across the kitchen!

Roll it. Allow your child to construct his or her own tortilla roll-up. Spread lightly with their choice of cream cheese, hummus or peanut butter, and let them sprinkle with their favorite ingredients: corn, strawberries, chopped cucumber, raisins, apple slices, avocado. Roll the tortilla up and slice into snackable-sized pieces. Dipping sauce (ketchup, ranch dressing, honey) completes the experience.

Pick it. Encourage gardening, and make nurturing and harvesting carrots or tomatoes an adventure! Children who are proud of growing vegetables may be more willing to taste the products of their labor.

Bottom line, what can parents do to help their children learn to appreciate healthy food? Most young people add new flavors and textures to their palate as they mature. We can be patient – and we can model healthy eating habits by continuing to shop, cook and enjoy the magnificent produce grown by farmers in the Great Lakes states! ■

Partners — Summer 2020

36

Commodity Cuisine...

Garlic Roasted Green Beans from Oakwoods Farm Green beans traditionally make their seasonal appearance in Michigan and Wisconsin in July. Enjoy this easy, delicious recipe from the Oakason family.

“If you’ve ever tried garlic roasted green beans, you’re going to love them almost as much as my three-year-old grandson.

My daughter-in-law Trista took a big batch of fresh green beans that she and their boys picked in our garden, and she came up with something simple and special. You only need five ingredients (and two of them are salt and pepper!).”

– Lori Oakason, featured on page 31 Ingredients: • 1 pound of stemmed snap green beans • 1 tablespoon olive oil • 4 cloves crushed garlic • 1 teaspoon salt (or to taste) • 1/2 teaspoon pepper (or to taste) Instructions: Preheat oven to 400 degrees 1. Place trimmed and washed green beans in a bowl and toss with olive oil and seasonings to coat 2. Cover a cookie sheet with foil and spray with nonstick cooking spray. Spread green beans in single layer on cookie sheet 3. Roast for 20-30 minutes, or until green beans are lightly browned and cooked (Lori’s comment: “If you’re lucky and blessed like my daughter-in-law, you will get a comment from your three-yearold son like this: “Mama, these are really good. I want more. You are a good maker!”) ■

37

Summer 2020 — Partners

LEARN

more attractively priced products and is subsidized at 65%, making it one of the most cost-effective ways to enhance coverage and manage risk. It is available as a supplement to CAT as well as the higher tier coverages.

SCO follows a grower’s existing policy by starting where the underlying policy stops and taking that coverage to 86%.

Remember that most fruit APH policy’s max out at 75% and are often expensive to obtain that level of coverage. Uniquely, SCO pays losses based on an area-wide-loss, not on the individual experience. The coverage begins where a producer’s primary policy leaves off, and extends to 86% of their production history.

For example, if a producer has a CAT policy that covers 50% of their production, then they are gaining an additional 36% of their average. Losses are paid based on county performance. If the county (or in some cases multiple counties) slips below 86% of their projected production per acre, then losses are automatically paid to the grower based on their average history. If the county (or counties) are at 80% of the projection, the producer will get paid 6% of their average (86% - 80% = 6%). These losses would be paid regardless of a producer’s individual experience.

So why might you like this coverage?

1. T he cost. It one of the cheapest solutions available to growers.

2. It’s a little more predictable. We can look back 20+ years and see when and where this policy would have triggered a payment for the grower.

SUPPLEMENTAL COVERAGE OPTION (SCO) – A CROP INSURANCE SOLUTION FOR FRUIT & ROW CROP

By Phillip Preston, GreenStone Crop Insurance Specialist

3. It provides a security against those “BIG” events that keep everyone awake at night. If there had been SCO in 2012, many growers would have slept better. Sometimes you can’t fight Mother Nature, and usually your neighbors and most of the county are going to be in the same situation.

4. It’s available to many fruit growers! This one is rare, as there isn’t usually a lot of supplements for fruit growers, which typically leaves them with a substantial gap to self-insure.

5. SCO offers growers with young perennials that have a poor historical average, a chance at legitimate coverage.

It is common for young blocks of perennial fruit to have a historical average that doesn’t represent the blocks’ expectations. That makes it difficult to trigger a claim even though you’ve experienced legitimate losses.

For 2020, SCO was available for apples, blueberries, grapes, peaches, and more. (SCO is also available for many of row crops, as long as the producer did NOT select ARC from FSA.)

IT’S HARD TO SLEEP AT NIGHT WHEN A HUGE STORM, FROST, OR DROUGHT IS LOOMING. THOSE BIG EVENTS THAT AFFECT THE WHOLE NEIGHBORHOOD CAN BE DISASTROUS AND HARD TO RECOVER FROM. JUST SAY “2012” TO ANY FRUIT GROWER AND WATCH THEM SHUDDER WITH BAD MEMORIES. IN 2012 WE DIDN’T HAVE ALL THE RISK MITIGATION SOLUTIONS WE HAVE NOW.

SCO doesn’t work for everything. For example: a hailstorm hits only you; not the county. SCO probably won’t help, but your base policy will.

Or, a frost event killed 40% of your bloom. SCO will probably help because it probably hit everyone!

In 2015, the Risk Management Agency (RMA) released the Supplemental Coverage Option (SCO), as an enhancement to Actual Production History (APH), Yield Protection (YP), Revenue Protection (RP), and Revenue Protection with Harvest Price Exclusion (RP-HPE). SCO is one of the

Is SCO right for your farm? Maybe. A crop insurance specialist well-versed in all available options should always be consulted when determining what coverage is right for your farm. No operation is the same as another. Your risks and goals should always be mindfully evaluated every year. ■

Partners — Summer 2020

38

CROP INSURANCE NEWS: CLAIMS & APPRAISALS Most producers have been there before: no matter what you do during the growing season, sometimes Mother Nature just will not cooperate, and you’re anticipating that your yields may fall below your guarantee. Obviously this is not the situation you would like to be in, but that’s why you purchased crop insurance to begin with. If you do find yourself in a claims situation, there are some important things to remember that can help the process go a lot more smoothly.

Insured’s responsibilities. For planted crops, the insured must notify the insurance company within 72 hours of the initial discovery of the damage or production loss, but no later than 15 days after the end of the insurance period, even if the crop has not yet been harvested.

If you have a revenue protection policy and have a claim based strictly on price, the insurance company must be notified within 45 days of the harvest price announcement for the crop.

Perils. The vast majority of naturally caused perils are included under multiple-peril crop insurance (MPCI) coverage. This includes, but is not limited to, adverse weather; failure of irrigation water supply; fire; insect damage or plant disease (unless you improperly or insufficiently applied pest or disease control measures); and, wildlife damage.

Those covered under Revenue Protection are also protected from a decline in market price as well.

Appraisals. If you are going to harvest your planted crop in any non-traditional manner, a crop appraisal needs to be completed, otherwise you may lose out on a potential indemnity payment. The most common time an appraisal is needed is when you’re going to chop corn that is insured as grain

Timeframe. Insurance coverage generally begins at the time of application or time of planting, whichever is later. The end of the insurance period is generally recognized as the earlier of total destruction of the crop; final harvest of the crop; abandonment of the crop; or the end of the insurance period (which is December 10 for corn insured as grain and soybeans).

39

Summer 2020 — Partners

for silage. If you have a corn policy, any acreage that is not harvested traditionally as dry grain should be appraised. Contact your crop insurance specialist at least a week in advance of when you are planning on harvesting, so an adjuster can arrange to perform the appraisals while the crop is still in the field. In the event you harvest before an adjuster is able to perform appraisals, representative sample strips must be left in the fields for an appraisal. The strips must be at least 10 feet wide and run the entire length of the field. If you do not agree with the appraisals you receive from the adjuster, do not sign them. Call your crop insurance specialist right away to have another adjuster perform a second appraisal.

Throughout the whole claims adjustment process, if you ever feel uneasy or believe something doesn’t seem right, contact your crop insurance specialist as soon as possible.

Obviously, no one wants to have a claim; producing a bumper crop is much more enjoyable than receiving a large claim check.

Remembering these key points will help make the claims process go more smoothly. ■

Crop Insurance Calendar...

JULY

1

FRESH APPLE REVIEWS

Forage & Fall Wheat Premiums Billing Date

15

Spring Acreage Reports Due & Processing Beans Final Plant Date

31

Fall Forage Seeding Insurance Sales Close Date

AUGUST

Please remember that your fresh apple policy can be signaled out for a fresh review at any time during the year or at claims time. You will be asked to prove that you have sold your apples as fresh, and at what price they were sold at. The requirement is that 50% or more were sold as fresh, at a fresh price, in at least one out of the last four years. Call us if you need more information regarding what documents can be submitted and what needs to be on those documents. If you cannot prove fresh sales, RMA requires that your apples be changed to processing for the current crop year. ■

15

SEPTEMBER

30

Wheat, PRF & Forage Production Sales Close Date. All changes need to be completed by the September 30 deadline! If a signed application is not returned, your policy will automatically renew at the same level you insured at during the previous crop year.

30

End of Insurance Period (loss reporting deadline) for Peaches & Blueberries

IMPORTANT DATE REMINDER! Late fees will be charged on any unpaid premium on October 1. Please make note of this important change as late fees cannot be waived. If you cannot pay your premium before the due date, please contact your AIP to make payment arrangements. Payment is due regardless of whether or not you have an outstanding claim. ■ HAIL INSURANCE:

Spring Premium Billing Date

It is not too late to purchase hail insurance for 2020! Hail is a separate policy from your multi-peril crop insurance coverage. As an added bonus, your hail policy can provide coverage for fire, lightning, vandalism/malicious mischief and transit to the first place of storage. Rates and coverage can vary by crop and county. Keep in mind, hail insurance must be purchased before damage occurs. Contact your GreenStone crop insurance specialist to review your options. ■

OCTOBER

15

Forage Underwriting Report Signature Due Date

CROP INSURANCE ALERT! BEFORE YOU CHOP!

25

Wheat Final Plant Date*

31

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

31

Final Claim Reporting Date for Dry Beans

Even though it’s only the middle of summer, it won’t be long until it’s time to fill the bunker silo. Before chopping corn for silage, please call and arrange for an appraisal ahead of time.

Every effort will be made to have your crop appraised before you chop. Otherwise, you will be instructed on how to leave samples in your field for later evaluation. ■ 2020 FALL WHEAT & FORAGE CLAIMS Appraisals are required when a customer plans to do something with the crop other than harvest in the normal manner. If you do not plan to take your wheat/forage to harvest, we must appraise the acres prior to destruction. ■ FORAGE PRODUCTION If you think you may be facing a forage production loss, contact your specialist to file a claim. If you do not have forage insurance for the 2020 crop year and are interested in coverage for 2021, the sales close date is the same as wheat, September 30. ■

* P lease note that some dates can vary by county. Please check with your Crop Insurance Specialist for specific dates if you are unsure.

Partners — Summer 2020

40

Protect Your Hay Investment with Forage Insurance and Forage Seeding Insurance

By Daniel Muhlenbeck, Greenstone Crop Insurance Specialist

IT TAKES A LOT OF EFFORT AND MONEY TO HAVE A GOOD FIRST YEAR NEW SEEDING CROP OF ALFALFA AND TO KEEP THE STAND GOING FOR FIVE YEARS. The planting year of hay may be covered by a new seeding insurance policy. Spring Forage Seeding insurance is a dollar value insurance and it works differently than most other types of crop insurance. It uses a reference price set by the Risk Management Agency (RMA), which in 2020 was $251 per acre. Coverage levels range between 50%–85%, meaning if plants die you are paid between $126–$213 per acre. The cost of coverage usually ranges from $4–$17 per acre. Also, you can take catastrophic coverage (CAT) for a fee of $655 that would pay $70 per acre for a loss.

If your field has acres where the plants died, you need to turn in a timely claim and the adjuster will do a stand count to see if you will have a loss. Claims are paid out on an acre by acre basis and the whole field does not need to be winter killed for a claim to be paid out. Two examples would be: •A 60% policy on 100 planted acres with 5 acres dead will pay an indemnity of $753 for those 5 acres. ($251 x 60% = $150.5 coverage, then $150.5 x 5 acres = $753 indemnity) •O r on 50 planted acres, you have 70% policy and 20 acres die, you would be paid $3,514 for those 20 acres. ($251 x 70% = $175.7 coverage, $175.7 x 20 = $3,514 indemnity) For an alfalfa field to qualify in 2020 as a good stand, it needs to have a stand count greater than nine plants per square foot. If there is a claim and the stand count on the loss acres is between 6.6 to nine plants – it would be a 50% payment and 0–6.6 is 100% payment. A pure stand of alfalfa needs to contain at least 60% or more alfalfa, a mixed grass stand needs to contain at least 25% but less than 60% alfalfa. Red clover would be covered the same way.

After fields with losses are appraised, you will have the option to tear them up, inter-seed or leave them for harvest.

A forage seeding policy is a yearly policy with a sales closing date of March 15. Stand counts to determine adequate acreage report is due by July 15, and the premium is billed August 15.

41

Summer 2020 — Partners

New for the 2021 crop year, that started July 1, a Fall Seeding policy will be available in many counties in Wisconsin and Michigan. Producers need to sign up for a policy before July 31 this year; acreage reporting is due by November 15, 2020, and premium is billed August 15, 2021.

There are a number of counties that have been added in Michigan for both fall and spring seeding forage – check with your crop insurance specialist to determine if your farm is eligible for alfalfa forage coverage.

The new Fall Forage Seeding Policy is also a dollar plan policy that covers alfalfa fields planted July 1 to August 15. It works like the spring seeding forage policy – protects from winter kill for the next spring. If its winter kills before May 25 the next year and you replant, you will be paid at half the loss rate for timely planted fall seeded hay.

Both forage seeding policies are protected against the following: winter kill, adverse weather conditions such as hail, frost, freeze, wind, drought, and excess moisture, plant disease and insects and wildlife. You can plant a nurse crop with the new seeding, but the nurse crop needs to be at half the normal rate of seeding.

Forage Production policy insures your forage average production history (APH). The Forage Production policy goes by past production approved history and can be insured between 50%–85% coverage level of your APH. Or, you can take a CAT policy which has a 50% coverage at 55% of projected price.

Forage Production Policy The Forage Production policy covers established alfalfa stands with adequate stand counts between one to five years-old and that have an adequate stand at the beginning of the insurance period. You can insure all your land in a county together as a basic unit (BU) or insure by sections, as an optional unit (OU). Sales closing date for a forage production policy is September 30, acreage reporting is due by November 15 and premium is billed July 1 the following year.

Production guarantee is based on your yield history. A loss is generated when

your production falls below your production guarantee. If your policy is at 50% and you have a 5-ton APH, your guarantee is 2.5 tons. RMA sets the price of hay each year. In 2020 it was set at $122 a ton of hay. If hays average 1.5-ton per acre, you would be paid a loss of $122/acre.

Forage Production acres need an adequate stand count, at the end of the crop year to be rolled onto a Forage Production policy.

A Forage Production policy is available in most counties in Wisconsin and available in few counties in Michigan. It is anticipated that the RMA will add more counties in Michigan in the 2021 crop year.

Please check with your local crop insurance specialist and the RMA actuarial documents to see the dates, stand count guidelines, cost, availability and rules in your area.

Michigan forage seeding counties for 2021: Allegan, Alpena, Barry, Bay, Chippewa, Clare, Clinton, Delta, Hillsdale, Huron Ionia, Iosco, Isabella, Jackson, Kent, Lapeer, Mecosta, Menominee, Missaukee, Montcalm, Newaygo, Ogemaw, Osceola, Ottawa, Sanilac, Shiawassee and Washtenaw.

Wisconsin northeast forage seeding counties for 2021: Brown, Calumet, Door, Florence, Forest, Kewaunee, Langlade, Manitowoc, Marinette, Oconto, Outagamie, Shawano, Sheboygan, and Waupaca.

This is an estimate and does not constitute a binding offer of insurance. Actual crop insurance premiums may differ based on final variables which include, but are not limited to; high risk acres, written agreements, supplemental rates, actual production history, options, acres planted, units, and Practice/Type/Variety. If the Farm Service Agency determines that the policyholder, or a substantial beneficial interest holder in the policyholder, is ineligible for premium subsidy as a result of any violation of 7 CFR Part 12 (Conservation Compliance), including, but not limited to, failing to file any required AD-1026 Form by the premium billing date, the policyholder may be required to pay the Total Premium rather than the Producer Premium.* This institution is an equal opportunity provider and employer. *Some information obtained from RMA and Rain & Hail Insurance Company Partners — Summer 2020

42

The Business/Lifestyle of Black Locust Farm TOM AND JACK’S GRANDPA STARTED BLACK LOCUST FARM IN 1923 AND THE ORIGINAL 80 ACRES WERE COVERED IN ITS NAMESAKE WOODLAND. JACK AND HIS WIFE KELLIE LIVE IN THE COBBLESTONE HOUSE THAT HIS GRANDPARENTS PURCHASED IN 1909, CONTINUING THE THIRDGENERATION FAMILY FARM LEGACY ALONG WITH JACK’S BROTHER AND PARTNER, TOM.

43

Summer 2020 — Partners

➡L eft: Tom and Jack Jeppesen carrying on a family farm tradition.

➡R ight: Tom and Pam Jeppesen, along with Kellie and Jack Jeppesen, take pride in their dairy and cash crop operation.

The brothers worked the farm with their dad after their grandpa died, eventually taking over the operation that now includes over 700 acres, with another 200 acres of rented fields. Black Locust Farm boasts 240 milk cows, and 40 dry cows and calves all the way through young stock. The farm grows corn, soybeans, alfalfa, and wheat, with all but the wheat going back into feed for the animals.

Much has changed since grandpa first cultivated their land, and Jack and Tom are working to ensure they are using current best practices in the field, in the barn and as part of their business to keep the farm moving forward.

It takes a team In their scope of improvement, they organized monthly consultant meetings and invited their veterinarian, a feed expert, an

agronomist, their equipment salesperson, and Mark Oberlin, their GreenStone financial services officer, to attend and participate.

Jack Jeppesen acknowledges the benefit of the experienced team effort: “We sit down and look over the records, identify where the holes are and where we’re lagging, and what we can do to make our operation more efficient. The agronomist might talk to everyone around the table and see if we can cut some expense with our fertilizer or chemical program, or discuss when we need to harvest the alfalfa or the corn.

“We’ve had people who aren’t really related to agriculture sit in on a consultant meeting, and they were just amazed. People don’t understand that farmers aren’t old sod savages anymore! We’re actually business people; there’s a lot of things that non-

“

It’s been real good working with GreenStone the last couple of years.

They know we’re doing the best we can out here, and we know they’re looking out for us.

”

farmers don’t understand we actually do – animal nutrition, property management, all the bookkeeping, and what every farmer is doing to pinch pennies to make a go of it right now.”

Jack and Tom rely on GreenStone for tax and accounting expertise too, with services ranging from quarterly federal and state payroll taxes to periodic accounting reviews in their online accounting portal.

“The last six months have been very challenging for the dairy industry,” says Jack. “But working with GreenStone has been phenomenal. For example, when the COVID-19 issue hit we were able to call Mark Oberlin, and our Tax and Accounting Manager Scott Martin, and they helped us round up all the forms we needed to apply for a loan under the SBA’s Paycheck Protection Program (PPP) really quickly.

“They worked together to get the documents I needed for the loan, then sent it all to me to sign electronically. It was a very smooth process. It’s been real good working with GreenStone the last couple of years. They know we’re doing the best we can out here, and we know they’re looking out for us.”

Partners — Summer 2020

44

Tax Calendar... ➡B elow: In the front row are Tom and Jack’s grandparents, Nellie and Levi. In the back row on the left is Tom and Jack’s dad, Gene, and their Uncle Levi Jr. is on the right.

JULY

15

• I RS tax filing deadline for all tax returns typically due April 15 were moved to July 15 in response to the COVID-19 pandemic (automatically applies to individual returns, trusts, and corporations without filing any additional forms).

•1 st and 2nd quarter estimates are due for 2020 for individuals who pay estimated taxes.

31

•N on-farm employers file Form 941 for the 2nd quarter to report Social Security, Medicare, and withholding.

• Form 5500 due for all employers that maintain an employee benefit plan such as a pension plan.

• I f not able to file, file Form 5588 to request an automatic 2.5-month extension.

SEPTEMBER

15

• T hird quarter estimate is due for 2020 for individuals who pay estimated taxes.

• S Corporations file a 2019 calendar year income tax return (Form 1120S) if an automatic extension was requested.

• P artnerships file a 2019 calendar year income tax return (Form 1065) if an automatic extension was requested.

• Corporations deposit the third installment of estimated tax for 2020.

Scott Martin admitted he was pleased that GreenStone has been able to adapt quickly during the coronavirus and provide the necessary electronic resources to remotely service the needs of our customers.

“Given that we help the Jeppesens with payroll throughout the year, and review the books at year-end, we were able to quickly and easily send all the documents Jack needed,” says Scott. “The online accounting portal we set up for the farm last fall was also very helpful – I was able to quickly jump into their accounting system to print the reports that were required. I really enjoy working with Jack and Tom and I look forward to continuing this partnership in the future.”

Joys outweigh the challenges The biggest challenge for Black Locust Farm has been the weather over the last year and a half. In 2019, a prolonged wet season prevented planting; this year, corn

45

Summer 2020 — Partners

and soybeans made it into the ground but required replanting after getting too much rain in May.

OCTOBER

15

Still, Jack admits, the setbacks may be frustrating but when farming is in your blood, nothing stops your gratitude for an occupation you love.

“My wife and I like to go on rides every night, just around the neighborhood.

We go by a cornfield every day, and I watch it to see when the corn is going to start spiking. Then, you see corn coming up out of the ground and you think ahead to harvest and wish city people could smell the fragrance of fresh cut corn silage or fresh mown hay,” Jack explains.

“And the older I get, the more I appreciate little things like that.

• I ndividuals file a 2019 income tax return (Form 1040) if an automatic extension was requested.

•C orporations file a 2019 calendar year tax return (Form 1120) if an automatic extension was requested.

•N on-farm employers file Form 941 for the third quarter to report Social Security, Medicare, and withholding.

“I used to not bother to look at the sunrises, but you know, anymore in the mornings when I come out and milk, I always wait for the sunrise.

“It’s just the best lifestyle, being out here in the country.” ■

i FRAUDULENT UNEMPLOYMENT CLAIMS / CREDIT FREEZE

Just as we were getting adjusted to the changes over the last several months, cyber criminals saw opportunity and began to take advantage of the global pandemic and economic downturn. State governments have reported substantial increases in unemployment claims made fraudulently by cyber criminals. The United States Secret Service has reported that a “well-organized fraud ring is exploiting the COVID-19 crisis to commit large-scale fraud against state unemployment insurance programs.”

While there is no silver bullet to prevent these criminals from filling unemployment claims, there is something you can do to protect your credit – place a security freeze on your credit file with the three major reporting bureaus!

• Equifax

• Experian

• TransUnion

o https://my.equifax.com

o https://www.experian.com

o https://service.transunion.com

o (888) 298-0045

o (888) 397-3742

o (888) 909-8872

A security freeze blocks any potential creditors from being able to view or pull your credit file unless you affirmatively unfreeze or thaw your file beforehand. With a freeze in place on your credit file, identity thieves can apply for credit in your name all they want, but they will not succeed in getting new lines of credit in your name because few, if any, creditors will extend that credit without first being able to gauge how risky it is to loan to you. Take the steps now to protect yourself! ■ References: United Sates Secret Service. (5/14/2020). Massive Fraud Against State Unemployment Insurance Programs. United States Secret Service.

...Tech Tip

Partners — Summer 2020

46

3515 West Road East Lansing, MI 48823

Summer feature highlight...

Craig and Lori Oakason were ready to take retirement and turn it into a new beginning.

Lori left her corporate job, and Craig, a Vietnam veteran, left the local police force after 21 years as an officer in Sandy, Utah. After hunting for affordable property to grow a bigger garden and raise a few animals, the Oakasons loaded up their household to embark on their next adventure as owners of a 7.25-acre hobby farm in Manawa, Wisconsin.

Read more on page 31.