This Issue
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Picture the Plains
Calling Customer Photos!
Have you submitted your pictures of the plains for the chance to win $100 and to be featured in our 2025 calendar?
It’s not too late! We select a winner each quarter and are compiling a great collection of photos highlighting the lifestyle we love.
To enter, submit your photo(s) to Photos@HighPlainsFarmCredit.com. Please include a caption and brief description (photo title, location, photographer, etc.).
Last Call for Scholarship Applications!
The deadline for the 2024-2025 HPFC Scholarship is quickly approaching.
Up to four $1,000 scholarships will be awarded to college and university students for the 2024-2025 academic year. Scholarships are renewable for one year, as long as students maintain a minimum grade point average of 2.5 and are properly enrolled in at least 12 credit hours for the next term or session. HPFC scholarships are designated to be awarded to students whose parent (guardian) or grandparent is a stockholder with the association. Students should also exhibit leadership potential or initiative.
For more information and complete requirements:
• Stop by any of the six High Plains Farm Credit offices
• Visit HighPlainsFarmCredit.com
• Email Shannon Schmidt: Shannon.Schmidt@HighPlainsFarmCredit.com
Applications are due March 15, 2024 at 5:00 pm.
Special Note for FHSU College of Business/AG Students:
Please see your advisor to discuss the upcoming deadlines for HPFC scholarships!
2023 Patronage
It’s another record-breaking year for our customer-stockholders.
ACRE: The Good, the Bad and the Ugly
Learn more about important legislative updates in this edition of “President’s Insights.”
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6 Share the Good News!
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Get the Lay of the Land
Did you follow land value trends in 2023? Catch up with the experts.
Learn more about the lastest happenings with our team!
Important Reminders
Get all the information you need on upcoming crop insurance deadlines.
Get Your AG News!
2023 proved to be a year that outperformed economic expectations.
Annually, CoBank explores these key trends and future projections in its report on the agriculture and marketing sectors.
From information on vital funding bills to insights for the U.S. agriculture economy, “2024: The Year Ahead” provides essential insights into “Forces That Will Shape the Rural Economy.”
Scan to read the full report!
2023 PATRONAGE ANNOUNCED
With John BoozeHIGH PLAINS FARM CREDIT CONTINUALLY STRIVES to be a trusted partner in our stockholders’ operations by being a reliable source of credit, offering competitive rates, and providing other financially related services to assist stockholders during difficult times.
High Plains’ history of delivering strong earnings continued in 2023 with $42.3 million in net income, which accumulates to the benefit of our stockholders. It allows us to return these earnings to our member-owners through our patronage dividend program, reducing the effective interest rate paid on eligible loans by one percent.
We’re proud to announce that in March, High Plains will once again distribute a record-breaking $17,300,000 in patronage dividend checks. Over the past three years alone, your board of directors has declared and paid $46.9 million in patronage distributions, demonstrating our desire to help our members, especially as many of you continue to deal with challenging economic conditions.
Another benefit available to all stockholders is the HPFC Preferred Investment Account, which offers a competitive return and can be a great resource when managing finances.
The average dividend rate in
2023 was 5.83%, with a rate of 6.25% at the end of January 2024. Dividends are paid semiannually in January and July each year.
To find out more about this program, the current rate, and all our other services, please visit HighPlainsFarmCredit.com or give your local branch office a call.
High Plains Patronage
Over the Years
ACRE: THE GOOD, THE BAD AND THE UGLY
IUNDERSTAND SOME OF YOU OR YOUR TRADE ORGANIZATIONS have been approached by commercial bank representatives to support their legislative efforts known as The Access to Credit for our Rural Economy (ACRE) Act or Enhancing Credit Opportunities in Rural America (ECORA) Act. The ACRE proposal would grant tax breaks on income earned from making farm mortgage loans and some rural home loans. As I understand it, commercial bank interest groups promise this legislation would result in lower interest rates for these loans. I appreciate the opportunity to engage with many of you on this topic and thought it is important to explore the good, the bad and the ugly of our ACRE discussions. THE GOOD.
Oscar Wilde popularized the proverb, “Imitation is the sincerest form of flattery that mediocrity can pay to greatness.” Periodically, commercial bankers visit legislators about their desire to be more like the Farm Credit System. This is a great opportunity for Farm Credit to engage with legislators and our customers to tell our story. The Farm Credit System is a cooperative, which is owned and governed by the very farmers, ranchers, and agribusinesses that we serve. Throughout this newsletter you see numerous examples of the benefits of being a Farm Credit customer/owner. For example, as owners you get to vote in the elections, can serve in leadership positions on our nominating committee/board of directors and
receive patronage dividends.
As a cooperative, income earned by Farm Credit institutions is used in only two ways – either it is retained in the organization to build financial strength and support more loans to customers, or it is returned in the form of patronage dividends. In 2022, Farm Credit returned over 41% of its income to customers, approximately $3 billion. Over the past 5 years, Farm Credit returned over $13.6 billion to its customers. In 2023, High Plains Farm Credit is distributing $17.3 million in patronage back to our customers. My point is: When you are a Farm Credit customer-owner you know exactly where the earnings are going. They stay in the entity you own to fund more loans for you, or they go to your pocket in the form of dividends which are taxable. Commercial banks have trouble copying this because their customers may not be their shareholders.
The benefits do not stop there. You also receive extensive borrower rights, higher capital standards, and confidence that Farm Credit is fulfilling its mission that you can verify with publicly available, audited financial statements. When you need agricultural financing, you should always consider doing business with Farm Credit, a cooperative, missiondriven lender, with your best interest at heart!
THE BAD.
Commercial bank interest groups promise this legislation would result in lower interest rates for farm mortgage loans and rural residential loans. Many of you have serious
questions about bankers’ claims that the money saved in taxes would benefit rural residents and not increase profits for bank owners and/or shareholders.
As currently written, passing ECORA or ACRE would result in a multibillion dollar tax break for bankers. There is NO REQUIREMENT OR ENCOURAGEMENT to pass along any of the benefits provided under the bill to borrowers. The bill would simply make banks more profitable.
When you are asked to lend your reputation or your trade organization’s good standing to a commercial bank interest group’s bill, ask these simple questions: Why doesn’t the ACRE language make any reference to providing interest rate reductions or rebates to benefit farmers and ranchers? Are you willing to alter the bill to ensure farmers and ranchers see some tangible benefits? If so, how?
The reality is the commercial bank interest groups do not have a satisfactory answer to these questions because it is all about them with a promise that it may help you or just a chosen few. At a recent trade organization meeting, one commercial banker answered, “Well we aren’t Farm Credit, so we can’t do that.” At least he finally spoke the truth and it should solidify in your mind what ACRE is about.
THE UGLY.
After the pandemic, the Kansas Bankers Association (KBA) lobbied to insert a state income tax break on farm mortgage loans and some rural home loans into a pandemic relief bill. The KBA and various commercial banks promoted the need for the tax break to help banks sustain/revitalize communities and promised to pass along lower interest rates to rural borrowers (does this sound familiar?). At the time, I testified my stance was “Neutral With Concerns.” I support legislation that benefits farmers and ranchers, but the legislation did not include how these benefits would be passed directly on to rural residents. I should have known better…. The bill was passed in 2021 and went into effect in 2023 to give Kansas commercial banks time to implement.
The question I have for you and our Kansas legislators: Is there any
evidence that the state tax break enacted for commercial banks in Kansas resulted in lower interest rates for Kansas farmers?
My guess is that you will not be satisfied with the answer you get to this because I cannot find any evidence either. You would think in Kansas we could have gotten this right. Commercial banks should do the socially responsible things that we do at Farm Credit. We are required to have robust internal controls and publicly available audited financial statements which allow the public to verify our results. That is how you build trust. Today’s state legislation falls short in Kansas, and we should not repeat the same mistake at the Federal level with ACRE.
FOR THE RECORD.
This article is about raising awareness that your commodity and farm organizations are being marketed by commercial bank
interest groups with creative competitive promises, not guaranteed, tangible results for you. Farm Credit is held to a higher standard, and we deliver tangible benefits every day. I have already mentioned in this article a few of the benefits that Farm Credit provides to prove our worth and achieve our mission. There is not enough space to name them all. The bottom line is commercial banks want a tax break without doing the hard work. As written today, ACRE is about increasing profits for commercial bank owners and/or shareholders. That is all it is and all you can expect out of this legislation. Be cautious, ask questions and only support legislation that will directly benefit you and your neighbors.
LAY Get the
of the
LAND
With Kirk Green
NEW YEAR, NEW LAND VALUE TRENDS.
Another year has come and gone, and High Plains Farm Credit has recently completed its year-end analysis. The association keeps records of land sales in our area throughout the year so that we can determine the direction of the market through analysis of these sales.
General Overview
In the past five years, our area has seen an increase in land values of around 60%. However, the trend in land prices for 2023 indicates a slightly slower increase in the market than in recent years. In fact, there were several areas in which the more rolling crop
ground decreased in value, while the good, Class II soils continued to rise. This may signal that the market is starting to level off.
Trends By Land Type
The following ratios are for land within the High Plains Farm Credit territory and a few additional counties on the edge of our territory. These figures are based on closed sales that are considered arm’s length transactions.
The value of good, upland crop ground (considered productive Class II soils) showed an increase of approximately 10%. Meanwhile, the value of marginal crop ground (Class III, IV, and VI soils) decreased by approximately 1%. CRP showed an increase of approximately 2.5%.
Irrigated land values showed an increase of approximately 15%. In 2022, irrigated land values were down primarily because of decreases in the Southwest Region. This year proved to be different. The irrigated sales in
the Southwest Region showed a gain of nearly 30%, indicating that last year may have just been an aberration.
Finally, the value of pasture also increased by approximately 7%.
Trends By Region
Regions analyzed include:
North Region
Decatur, Norton, Phillips, Smith, Sheridan, Graham, Rooks, and Osborne counties
Central Region
Gove, Trego, Ellis, Russell, Lane, Ness, Rush, and Barton counties
Southwest Region
Hodgeman, Gray, Ford, Edwards, Kiowa, Meade, and Clark counties
Southeast Region
Pawnee, Stafford, Pratt, Comanche, Barber, Kingman, and Harper
When studying land prices by region, the values in our area are fairly consistent from north to south. However, we do typically see an increase in land values
farther east in our territory. Generally, values continue to increase for most land types in the majority of the counties analyzed.
In 2022, nearly all the regions showed increases in land values for all land types. In contrast, the Southeast Region was the only area to show an increase in all land types this year.
With lower commodity prices
and higher interest rates than last year, I would expect to see some leveling off of the market. However, there is still quite a bit of cash out in the country that plays a role in keeping the market up. The recreational market across much of our territory also remains a factor. As the year progresses, we will continue to monitor any developments that may
affect values.
High Plains Farm Credit currently has five state certified appraisers on staff that are continuously watching the market and monitoring land values. If you need agricultural land appraised for estate purposes, for buying, for selling, or for any other purpose, please let us know. We welcome the opportunity to assist you.
2023 Land Value Trends
HPFC Nominating Committee
ARE YOU READY TO VOTE?
IN 2024 THERE ARE FOUR OPEN DIRECTOR SEATS TO BE ELECTED: one from Territory One and three from Territory Two.
During the month of February, elected members of the nominating committee met to select candidates for the board of directors and nominating committee. The HPFC Nominating Committee is comprised of an independent committee of voting stockholders, specifically tasked with reviewing and nominating candidates for positions on the board of directors and the nominating committee.
There are a total of eight candidates seeking election for the four seats. The nominating committee conducted an extensive candidate search, starting with a conference call in January and then meeting in February. Potential qualified candidates were actively solicited for all positions.
At the association’s annual meeting in May, voting stockholders in attendance will be permitted to make floor nominations for every open stockholder elected director
position and nominating committee position. Floor nominations may be made by a voting stockholder and require a second by another voting stockholder.
If you have any questions regarding the floor nomination process or the benefits of and qualifications for being a board member, please contact any HPFC office or visit HighPlainsFarmCredit.com.
Candidates are listed by open seat and alphabetically by name. The election for each position is conducted independently, with each voting stockholder given an opportunity to vote for each of the four open positions. Again this year, you will have the option of completing a paper ballot or an online ballot.
Special thanks to our 2024 Nominating Committee members; John Blackwell, Scott Livingston, Lindy McMillen, Joss Briggs, Jerod Horchem, Kirk Larson, Matt Grabbe, Nathan Kramer, Jared Petersilie, and Diana Paris; as well as all the candidates for agreeing to be a part of this year’s ballot.
Voting for directors and nominating committee will be by mail or online ballot, sent within 10 business days following the annual meeting. The election polls will close at the end of the 20th business day following the date on which the ballots are mailed/emailed to the voting stockholder. A thirdparty election tabulator will count the votes and declare the winners. Additional information regarding the nominees and the election process will be sent in April.
Kenny Gasper
Brooks Hanson
Matt Miller
Steven Heath
Jon Herrmann
Simon Miller
Christa Milton
Vance Shay
John Blackwell
Joss Briggs
Rhonda Goddard
Matt Grabbe
Nathan Kramer
Jared Petersilie
Jerod Horchem
Kirk Larson
Scott Livingston
Lindy McMillen
Diana Paris
Brad Werner
Stability in the Seasons and Cycles OPERATING LINES
With Chase Ostmeyer
What is an operating line of credit?
An operating line of credit (operating loan) is available loan funds to support a farm, ranch, or agribusiness throughout the operating cycle.
It can be used to cover expenses for input costs, labor costs, equipment payments, real estate payments, livestock, and other necessary expenses.
How does an operating line of credit work?
At HPFC, an operating line of credit works differently than at your local bank. Typically, our operating loans have drafting privileges that allow a borrower to get access to their line through writing bank drafts directly for the operating expense. As you sell your crops and livestock, the line of credit is paid down with the sales.
You’ll save time and money spent on interest without the need to call the bank every time you transfer funds between the operating loan and your checking account. Operating loans can be paired with online banking, which allows for mobile deposits that make the process of accessing funds even simpler. All that’s required to receive almost instant credit is to upload a photo of the check for deposit to our mobile banking platform.
What is a revolving line of credit?
Revolving lines of credit are the most common operating loans at High Plains Farm Credit. They have a specific loan amount, but not a total disbursement limit. This type of loan is similar to a credit card.
Any time the operating loan is paid down, the funds become free to cover other operating expenses.
What are rate options for an operating line of credit?
Did you know that an operating loan with High Plains Farm Credit can provide you with the freedom to run your farm or ranch the way you’d like? Explore FAQs about operating lines of credit!
OF CREDIT Q&A
HPFC operating loans are priced at a variable interest rate. The balance on loans changes daily, allowing producers the ability to only pay interest on funds that are needed at a specific time.
Can you use a line of credit to purchase real estate?
While operating lines of credit typically are not used to purchase real estate, HPFC has extensive real estate loan options designed for this specific purpose.
Does an operating line of credit require collateral?
Yes. Operating lines of credit require collateral options that are flexible to your operation. Typical types include crops, livestock, inventories, accounts receivables, government payments, and farm equipment.
What is cash collateral?
Ostmeyer Regional Vice PresidentIf you deposit more funds into your account than are owed, the funds are held in a cash collateral account. Operating lines of credit have access to cash collateral up to the loan limit amount. HPFC pays a competitive interest rate on funds held in the cash collateral account.
As you pay for operating expenses with your line of credit, funds are automatically withdrawn from the cash collateral account prior to accessing the line of credit. After the cash collateral funds are exhausted, the expenses will be pulled off the line of credit.
What is required to obtain an operating line of credit?
Usually, the following documents are required:
Loan application
Financial statements
Tax returns and/or projected cash flow
Additional information, depending on specifics of the operation
What’s different about an operating line of credit with High Plains Farm Credit?
One of the foundational benefits of an operating loan with HPFC is the freedom to run your farm or ranch as you see fit, with a trusted agribusiness expert. Farmers and ranchers become customer-stockholders in our cooperative and can benefit from our patronage dividends program. Separating us from other lenders, a patronage dividend is a way of distributing High Plains Farm Credit’s net income to our customer-stockholders.
Scan to explore operating loans!
At HPFC, we pride ourselves on making the right decision for your operation and not for the bottom line of the bank. Furthermore, we’re dedicated to providing a quick turnaround thanks to local decisions. All of that means greater flexibility for your operation.
SHARE THE GOOD NEWS!
New Employees
Abby Vogl
grew up outside of Elizabeth, Colorado and attended the University of Wyoming, where she earned her degree in agricultural business management with a minor in finance. In college, she was heavily involved with the meat judging team where she participated in contests, but also became a coach in her senior year to help develop her leadership skills.
Abby got her start in the Farm Credit System with summer internships at CoBank and at Farm Credit Services of America in 2022 and 2023. Her fiancé, Conor, is an agronomist and they are getting married in April of 2024. In her free time, Abby likes learning new skills (like canning), gardening with Conor, and tending to her inside houseplants.
Paige Carter
grew up on her family ranch south of Little River, Kansas. She attended Fort Hays State University following high school and graduated with her bachelor’s degree in 2018.
Prior to joining the High Plains team, she worked at Fort Hays State University in the Financial Aid Office. Her husband, Matthias, is the Technical Director at Celebration Community Church in Hays. Paige and Matthias live in Ellis with their one-and-a-half-year-old son, Ezekiel (Zeke). Paige enjoys traveling home to help on the ranch, spending time with friends and family, gardening, reading, and listening to live music.
New Additions
Kayson Reed Appleton
joined the High Plains Farm Credit family on December 1, 2023, weighing in at 6 pounds and measuring 181/4 inches long. Kayson is Kate and husband, Matt’s, first child. Kate is the Human Resource Coordinator in our Larned office. Congratulations to the Appleton family!
Employee Promotions
Kirk Green
Senior Vice President
Appraisal
Phillipsburg Office
Nick Jablonski
Senior Vice President
Capital Markets Remote
Jay Ziegelmeier Vice President
Lending Hays Office
Abigail Lloyd Credit Analyst Capital Markets Pratt Office
Amber Sanko AVP Lending Dodge City Office
Sloan Thomas Linenberger
was born on January 11, 2024, weighing 8 pounds, 3 ounces, and measuring 20 inches long. Big brother Sage, mom Sarah, and dad Dylan are excited to welcome their newest addition! Sarah is an AVP - Lending in our Ness City office. Congratulations to the Linenberger family!
Bernie Rhea Gevara
became part of the High Plains Farm Credit family on January 12, 2024. She weighed 6 pounds, 7 ounces, and was 18¾ inches long. Bernie is Bryce and fiancée, Madison’s, first child. Bryce is the Accounts Payable Coordinator in our Larned Office. Congratulations to the Gevara family!
Spring 2024
CROP INSURANCE REMINDERS
THE SPRING SEASON IS COMING SOON and with it comes severe weather season! Now is the time to protect the value of your crop. High commodity prices and input costs to put that crop in the ground have only increased the importance of comprehensive coverage.
Crop Hail Insurance
But did you know that your multiperil crop insurance (MPCI) doesn’t provide complete coverage? Whether it be revenue protection or yield protection, it only covers a portion of your crop. Fortunately, crop hail insurance can provide protection for the remaining value of the crop that MPCI won’t cover in the instance of hail. That’s important in a part of the state where hail is one of the primary causes of loss.
In providing crop hail insurance, High Plains Farm Credit can write with multiple companies, allowing us to offer the best rate and coverage options for your operation. Our team customizes a policy to meet your farming needs with options from basic coverage with no deductible to five, 10, and 20 percent deductibles. No matter what, we work with your operation to create a plan that meets your needs!
Mark Your Calendar for March 15!
As spring arrives, we’d like to remind you of important deadlines on March 15, 2024. If you plan to short rate your wheat acres due to grazing or haying, please contact your agent so we can revise your acres report. This process decreases your premium on the selected fields that will not be taken to harvest.
However, once you short rate, you are not able to harvest those fields. This will appear as no planted acres for that year on your Actual Production History (APH) policy. There is also an option to short rate a portion of the field and keep the remaining acres for harvest.
March 15 also serves as the final deadline to make changes to your spring insurance plan. When reviewing, please make sure that all crops are on your plan for the year. After the deadline, that crop, plan, or county will remain without coverage for the spring crop year.
Thank You to Our Customers
As always, thank you for allowing High Plains Farm Credit to serve as your crop insurance provider. Our agents enjoy working with you and are proud to provide excellent customer service and expertise in protecting your farming operation.