a day in the life of a credit analyst - agchoice · agchoice farm credit • • summer 2011 a day...

AgChoice Farm Credit • www.AgChoiCe.Com • Summer 2011

A Day in the Life of a Credit Analyst

wanted: Young or Beginning & Small Farmers

Leaderis published quarterly for stockholders, customer-owners, directors and friends of AgChoice Farm Credit.

PresidentAllyn L. Lamb

BOArd OF direCtOrsWilliam K. Jackson, Chairman Dennis B. Spangler, Vice Chairman Richard A. Allen Lisa M. Boytim Donald G. Cotner Jr. Paul W. McPherson Jeffrey L. Raney Charles F. Ulmer Jr. Christine Waddell Brandon L. Weary Samuel BowerCraft, Appointed - Outside Director R. Mac Reeves, Appointed - Outside Director

editOrAlexa Stoner

PUBlisherAgFirst Farm Credit Bank

PUBlishinG direCtOrDonna Camacho

desiGnersAthina EargleDarren Hill Amanda Simpson Travis Taylor

PrinterSpectra True Colour

CirCUlAtiOnKathi DeFlorio

Address changes, questions or comments related to the Leader may be directed to:Alexa Stoner | AgChoice Leader EditorAgChoice Farm Credit 900 Bent Creek Blvd. | Mechanicsburg, PA 17050phone: 800-349-3568 x6025 email: [email protected]

Requests for copies of our financial reports and inquiries related to internal control, auditing and accounting should be directed to:Ann Metzler | Audit Committee Recording Secretary AgChoice Farm Credit 3301 West Market St. | York, PA 17404-5806phone: 800-822-1218 email: [email protected]

COver PhOtOGoats enjoy grazing time on Bill and Jana Lowe’s farm in Felton, Pa. Story on page 13.

At AgChoice Farm Credit, we understand the specialized management services that your business requires. Use our staff of professionals to help you with everything from employee benefits to human resource consulting. These value-added services include:

800-998-5557 | www.agchoice.com

Financial Services to Protect Your Business

Employee Benefits

• Health insurance—individual and group• Cafeteria benefit plans• Health Reimbursement /

Health Saving Accounts• Disability (long- and short-term) insurance• Group insurance benefits• Qualified retirement plans• Deferred compensation plans

Human Resource Consulting

• Performance management• Supervisory training

and coaching• Leadership and management

development• Team building• Compensation planning• Facilitation

COntents

Summer 2011, AgChoice Farm Credit | 3

MessAGe FrOM the President

Affecting Your Bottom Line 4

BOArd trAininG

Building Better Decision Makers 5

AssOCiAtiOn news 6

reAdy, AiM, shOOt

Calling All Shutterbugs 7

On the rOAd AGAin ...

A Day in the Life of a Credit Analyst 8

CUstOMer serviCe

Customer Care Taken

to a New Level 9

FeAtUre stOry

The Decisions You Make—

The Actions You Take 10

rUrAl livinG

Living the Dream 12

edUCAtiOnAl OPPOrtUnities

Wanted: Young or Beginning

& Small Farmers 14

Added-vAlUe serviCes

Making Your Agribusiness

a Great Place to Work 16

nAtiOnAl disCOUnt PrOGrAM 17

reCiPes

Royal Recipes 18

FinAnCiAl rePOrt

2011 First Quarter 19

Mark your Calendars!Plan on attending a Customer Appreciation Event near you!• July 19 - Curryville Branch—Berlin Grove, Berlin, Pa.

• July 22 - Cumberland Valley (Chambersburg) Branch—Green Grove Gardens, Greencastle, Pa.

• August 2 - Endless Mountains (Towanda) Branch—Shadowbrook Resort, Tunkhannock, Pa.

• August 12 - Meadville Branch—Mike S. Zafirovski Sports & Recreation Dome, Edinboro University, Edinboro, Pa.

• August 25 - York Branch—4-H Center, York, Pa.

• September 1 - Susquehanna Valley (Lewisburg) Branch—Ard’s Farm Market, Lewisburg, Pa.

• September 14 - Coudersport Branch—Executive Development Program, State College, Pa.

• October 1 - Seven Mountains (Lewistown) Branch—Way Fruit Farm, Port Matilda, Pa.

Invitations and additional information will be mailed as the date draws near. Be sure to check out the events page on www.agchoice.com for additional information or contact your local branch if you have any questions. We are looking forward to seeing you this summer!

Forest Products Customers: Executive Development Program—September 14• Where is the Forest Products industry headed?

• What will I need to do so I can continue to be a player?

• How can I ramp up my business, be positioned for the future and be able to get the financing I need?

• How do I handle the other business challenges that are coming my way?

Answers to these and other questions will be addressed at the 2011 Forest Products Executive Development Program co-sponsored by AgChoice Farm Credit and the Pennsylvania Forest Products Association (PFPA). It will be held on September 14, 2011 in conjunction with the PFPA Annual Meeting. The Executive Development Program will run from 8:30 a.m. to 4:30 p.m. and the PFPA Annual Meeting will follow. Both events will be held at the Ramada Inn on Atherton Street in State College, Pa.

Mark September 14 on your calendar to attend this stimulating and educational event. Then watch for additional information, details and registration materials from AgChoice or PFPA in your mailbox. For those planning to remain in the forest products industry, this is a “must-attend” event.

Allyn Lamb

4 | Summer 2011, AgChoice Farm Credit

MessAGe FrOM the President

Affecting Your Bottom LineGrowth is the lifeblood of every organization

We need the help of every member of this cooperative to refer good quality new business to us. We have a referral program where you not only can earn a great gift, but you improve your own patronage potential by helping AgChoice find new business.

We paid a record amount of cash patronage in 2011 based on strong 2010 earnings. This generated a lot of interest and excitement, coming as it did during a relatively weak economy. You may well wonder how you can earn an even larger patronage refund. One way is to pay more interest by borrowing more money or paying a higher interest rate. Most people don’t like that answer. However, there is a similar answer that most people do like. That is, encourage your neighbors to use our services if they are not current customer-owners. The more our loan volume grows, the greater our profit potential, and the more patronage we can return. And we are well-positioned to efficiently handle a much greater volume of loan business.

Growth is the lifeblood of every organization. There are many ways to define “growth” but for purposes of this discussion I will keep it simple. I am talking about loan volume growth and growth in the utilization of our Business Management Services. We all know that we are coming off the worst two years in the general economy than we have

seen since the Great Depression. And if you are in the dairy or forest products industries, you have experienced more economic volatility than ever before. One consequence is that many farmers and business operators have deferred making capital expenditures until the direction of the economy becomes clearer. That is one reason why we are seeing rather disappointing growth in loan volume this year.

Another less obvious way you can earn a larger patronage refund is through our range of Business Management Services, including crop insurance, farm business consulting, farm appraisals, wealth management and insurance services. While our Business Management Services are not considered patronage types of services, every time you use one of our member services you add to our bottom line. This helps us cover our costs and generate additional profits, which enables us to pay more patronage on our interest earnings, on the interest you paid on your loan. Not only do you receive the benefit of the great services

we offer, but it indirectly helps to increase your patronage refund.

This is where you come in. We need the help of every member of this cooperative to refer good quality new business to us. We have a referral program where you not only can earn a great gift, but you improve your own patronage potential by helping AgChoice find new business. Speak with your loan officer and suggest some names of neighbors or prospects that we might contact and ask about how our Business Management Services can fit your needs. Remember, it is a win-win.


BOArd trAininG

The role of an AgChoice director is both challenging and rewarding.

The members of your AgChoice Board of Directors have a major fiduciary responsibility in setting policy and monitoring Association performance. Few, if any, individuals elected to Board positions came to the job with all of the knowledge and skills they needed to be able to step in on day one and be an effective director. Because of the diligence and hard work of your AgChoice Nominating Committee, anyone elected to the Board should have the basic aptitude and skills to be able to perform satisfactorily as a director. But it takes special education, experience and time for directors to perform at a truly proficient level. Fortunately, directors get that training and education from a variety of sources and all directors do participate in regular training programs.

Every newly elected director undergoes basic orientation sessions at the Association with all members of our senior staff. This provides exposure to the key areas of our business operations: credit, finance, audit, financially-related services, marketing and human resources. In addition, directors take a series of online courses at their own pace and on their own schedules. Topics for the current series of programs are:

1. Megatrends of Agriculture and Ag Lending

2. The Farm Credit System and Cooperatives

3. The Landscape of Ag Finance: A Competitive Assessment

4. Customer Segmentation and Service

5. Farm Credit Communications Advocacy Program

Additional orientation sessions are conducted by the AgFirst Farm Credit Bank and the Farm Credit System.

If a director becomes a member of our Audit Committee, he or she is expected to take additional training to develop proficiency in audit issues. Members of our Compensation Committee also receive special training in executive compensation issues.

Recently, our Board joined in a special training program with a small number of other Farm Credit associations to provide specially developed programs just for our group. This program is called The Premier Governance Series and is intended to help our directors deal with the special challenges that Farm Credit institutions face today. Topics covered in this program include:

1. Determining Strategy and Managing Strategic Dilemmas

2. Excellence in Board Leadership

3. Financial Direction of the Enterprise and Managing Risk

4. Human Capital as a Resource

There is no question this training takes time and represents a major commitment for Board members. But this is what it takes to direct a large, complex financial institution.

Fortunately, most members of your Board had already participated in these and other effective training programs prior to the recent economic and financial meltdown. This is one important reason we were able to weather the recent economic crisis and emerge even stronger than when the troubles began.

One of our stated core values is “Constantly Growing, Learning and Innovating.” This applies to all AgChoice staff as well as your Board of Directors. You can take comfort in knowing that once someone is elected to the Board, he or she is provided with essential training that helps position AgChoice for even greater success. I have heard directors say that this training is like a graduate course in business. I have also heard them say that it has made them even more effective in their own businesses. They are fulfilling their fiduciary responsibilities, adding value to the Association, providing service to customer-owners and becoming better business people in the process. n

Building Better Decision Makers

You can take comfort in knowing that once someone is elected to the Board, he or she is provided with essential training that helps position AgChoice for

even greater success.

By Allyn Lamb, AgChoice Farm Credit President and Chief Executive Officer

AssOCiAtiOn news


83 Years of Service and Dedication recognized

AgChoice Scholars: experiential Learning. Fellowship.

AgChoice said good-bye and good luck to retiring employees, Steve Bolt, chief appraiser, Jim George, executive loan officer and Rich Sell, senior appraiser, earlier this year. We thank Steve, Jim and Rich for their tireless efforts, hard work and dedication, and wish them the best of luck as they start new chapters in their lives. n

Jim george rich SellSteve Bolt

AgChoice Farm Credit is pleased to announce that the AgChoice Scholars program, a unique experiential learning opportunity for a select group of Penn State students, is recruiting members for the upcoming school year. This two-year program gives students first-hand experience working with Pennsylvania’s largest agricultural lender and a glimpse into the agricultural lending industry.

The AgChoice Scholars program was designed to build the future leaders of the agricultural industry while increasing the potential candidate pool for future AgChoice employees. By participating in this program, students will have the opportunity to network with their peers, AgChoice staff and other industry representatives. Students will gain:

• Hands-on experience in the agricultural finance industry

• Business and financial management training

• Leadership, teamwork and communication skills

• Scholarship money and other compensation

If you will be a junior this fall at Penn State and are interested in applying to AgChoice Scholars, please check out our Web site at www.agchoice.com/about/agchoice-scholars. You will be able to review the informational flyer and apply right online. Deadline for applying is September 16, 2011. n

AgChoice Farm Credit was one of four Farm Credit associations to participate in the recent Blue Ribbon Tastes from Farm Credit reception held in Washington, D.C. The event showcased Farm Credit and its customers’ products to members of the United States House of Representatives and their staff. Thanks to the following producers that provided products for the event:

• Allegro Vineyards and Winery – Brogue, Pa.

• Barnett Farms – Coudersport, Pa.

• Cotner Farms, Inc. – Danville, Pa.

• Greendance – The Winery at Sand Hill – Mt. Pleasant, Pa.

• Mark’s Custom Meats, LLC – Madisonburg, Pa.

• Sleepy Creek Honey and Maple Syrup – Venango, Pa.

• Perrydell Farm – York, Pa.

In addition to the reception, Board Chair Bill Jackson, Director Paul McPherson, Director Don Cotner and other AgChoice staff met individually with available representatives and senators to discuss AgChoice Farm Credit and its role in building a stronger future for agricultural and rural communities. n

Customers Products Featured at Blue ribbon Tastes from Farm Credit reception


reAdy, AiM, shOOt

Are you interested in photography? Have you captured a smile or special moment and

thought it would make a great calendar photo? Well,

now’s your chance to put your trigger finger on the camera and creative skills to work! AgChoice Farm Credit is looking for 12 winning photos to display in our 2012 Association calendar. We want this calendar to represent our customer-owners and employees and how you both contribute to the rural American dream. So get ready, aim and shoot! Your photo can be a winner!

Eligibility• Customer-owners and employees of

AgChoice Farm Credit and their family members are eligible to enter.

• All photos must have been taken in the AgChoice service territory, which includes 52 counties in Pennsylvania and four counties in West Virginia.

Calendar Photos Entries should include photos of the following subjects that represent rural living. The photos can be subject matters that include but are not limited to the following:• Family members on the farm or your

business operation• Seasonal photos of farm scenes or

rural surroundings• County fair accolades or county festivals

Name: ____________________________________________________

Address: __________________________________________________

City: _______________________ State: _______Zip: _____________

Phone:____________________________________________________

Email: ____________________________________________________

Name of photographer: _____________________________________

Name(s) of people in the photo: _______________________________

Where was the photo taken? _________________________________

Describe what is happening: _________________________________

__________________________________________________________

__________________________________________________________

Relationship to AgChoice (check one): q AgChoice customer-owner q AgChoice employeeq Customer-owner family member q Employee family member

Signature of contributor: ____________________________________

By signing the official entry form, we understand that the images will not be returned and each photo submitted comes with full and exclusive rights for AgChoice Farm Credit to print the photo, without credit, in AgChoice Farm Credit literature, without further obligation to the photographer or those people who have their persons or items pictured.

Send official entry form to: Photo Contest, AgChoice Farm Credit, 900 Bent Creek Boulevard, Mechanicsburg, PA 17050. Email jpgs to: [email protected] no later than August 31, 2011.

AgChoice Farm Credit Photo Contest entry Form

Calling All shutterbugs!

• Agricultural photos including our vast array of industries in our territory such as dairy, timber, crops, vegetables, farmer’s markets, equine, etc.

• Action photos such as planting or harvesting• Rural living photos

FormatPlease submit the following:• Landscape (horizontal) photos only. Due to

the design layout, vertical (portrait) shots cannot be used.

• 4 x 6 photo with negative or high-resolution digital images. Digital images must be emailed or on CD—no links to web libraries will be accepted.

• Digital images must be 1.5 MB or larger in size so when it is enlarged it does not lose color or sharpness.

• Photos must be identified with name and address on the back of each photo (please use label for this information and do not write on the back of your photo) and the negative must be secured to the photo in an envelope with the name and address on it.

Winning Photos• Twelve photos will be selected and featured in

the 2012 calendar, including one for the cover.• Three winners will be chosen for top honors

but all 12 will receive a special prize.• All participants will have bragging rights for

one year that their photos were chosen!

Important Information• Entries must be received by August 31, 2011,

by mail or email. • All photos (used or unused) will become the

property of AgChoice Farm Credit. • The entry form below will serve as a

permission slip to use the photo in printed materials and/or for advertising purposes. All entries must provide all of the information below in order to qualify.

• The entry form can be downloaded from our Web site at www.agchoice.com/forms and must be attached to all emailed entries.

• No images will be returned. Please make duplicate copies or a duplicate CD for yourself if you desire to keep your photos. Negatives will be returned if we receive a written request for return with your entry. n

deadlineextended:

send your photosby August 31

On the rOAd AGAin ...


In the last issue of the Leader, I followed an AgChoice loan officer for a day and discussed his interactions with AgChoice customers and prospects. But what exactly happens once the loan officer has gathered all of the necessary information from someone who is interested in taking out a loan? How is the information analyzed and who makes the decision as to whether to approve the loan or not? That’s exactly what credit analysts do.

Becky Jones is an outstanding representative of AgChoice’s credit analysts. Her attention to detail, strong work ethic and years of experience make her a valued and trusted member of the AgChoice team. Additionally, Becky truly cares about the customers that she serves. Becky explains, “It’s gratifying to know that I’m helping to fulfill customers’ career and family goals.”

As I sit down with Becky in AgChoice’s new Credit Operations Center to shadow her for the day, it’s evident that she’s already given some thought on what she wants me to experience. We start at the beginning and discuss how a loan request, whether it is a simple credit line renewal or a complex loan request, eventually gets in the hands of a credit analyst.

AgChoice has advanced electronic systems in place to track and collect information for every loan request. Once a request is entered into the processing log by a loan officer or financial specialist, it is then assigned to one of 12 credit analysts. During my day spent shadowing Becky, she had a total of 16 different loan requests on her to-do list that are at various stages of analysis.

In the most basic sense, a credit analyst’s job involves working closely with a loan officer

to develop a loan package that best meets a customer’s needs. This entails analyzing financial information to determine if the loan is in the best interest for both the customer and AgChoice. Key financial measures assessed include working capital/liquidity, equity and repayment ability. Other daily tasks of credit analysts include checking credit reports, analyzing collateral, ordering appraisals and writing and approving loan packages.

In addition to learning about the loan process, I gain an appreciation for a credit analyst’s ability to multi-task. Becky receives numerous phone calls throughout the day, all relating to different loan packages, and she quickly switches gears to address the questions or concerns of the caller no matter if it is a loan officer or even an outside party, such as a Farm Service Agency representative. As Becky flips from tax returns to projection sheets with ease, it is clear that her six years of experience as a credit analyst, plus her educational background in Agricultural Business, have helped her to build the skills necessary to effectively handle any situation.

“It’s a pleasure being involved in agriculture—an industry that is vital to each and every person whether they realize it or not,” Becky explains. Although she did not grow up on a farm, Becky’s family has always had strong ties to the agricultural community. She grew up showing dairy cattle at local fairs and was an active member of 4-H and FFA. Becky and her husband now own a small business, Quality Turf Unlimited. Her agricultural background and business knowledge are key ways that Becky is able to connect to the customers that she serves.

Becky enjoys helping customers succeed and offers the following advice, “Take a true interest in your financials and understanding them.” She explains that keeping abreast of your financials consistently will allow you to:

• See areas of success and improvement

• Assess trends of performance areas

• Benchmark your operation against others in the industry

• Be more prepared for your lender and any questions they may have

Becky and all AgChoice credit analysts remain committed to providing sound analysis and decisions for all AgChoice customer-owners. They are a critical part of the loan process, essentially carrying out AgChoice’s core function of providing credit for agricultural and rural communities. However, AgChoice’s team of employees includes many others important to servicing customers. Look for a continuation of this series of articles in future issues of the Leader. n

A day in the life of a Credit AnalystBy Raechel Sattazahn, AgChoice Farm Credit Marketing Officer

This article is the second in a series that features staff positions within AgChoice Farm Credit. We hope that you will enjoy reading about AgChoice team members and the critical role that they have in serving you, our customer-owners.

Credit Analyst Rebecca (Becky) Jones

CUstOMer serviCe


Customer Care Taken to a New LevelBy Gary Heckman, AgChoice Farm Credit Director of Sales and Marketing

You are busy. But you also have a question that needs to be answered or some kind of servicing carried out on your AgChoice loan. How long will this take? Do you need to track down your AgChoice loan officer? Not to mention, you need to get back to work.

Chances are that your need will be addressed much faster than you realize. One call to AgChoice and the question will be answered or the issue will be resolved by the first person you talk with. Today this takes place even faster due to the realignment of our Customer Care function.

Earlier this year we established a Customer Care Team to serve our customer-owners more quickly and completely. We selected some of our most talented service specialists, removed other administrative duties from them and positioned them to answer your calls and if at all possible, meet your needs right there on the spot. Many things you need to talk with your loan officer about can now be handled by this talented team.

For the fastest service when you call AgChoice, tell the person answering the phone why you are calling and what you need. Chances are very good that they will be able to help you and you’ll be back to what you were doing before you know it.

Here are some examples of the service this specialized team can offer:

Linda moser

erin Bingaman

ruthy Patti

Linda Laughlin

“Hi, I’m Linda. Can I help service your account in any of these ways?”

• Address changes• Payment questions• Billing issues or questions• AccountAccess assistance• Set up your account• Reset your password• Look up your User ID• Provide a check from your

revolving credit line

“Hi, I’m Erin. Can I answer any questions you might have about:”

• Directions to the office• Fax number of specific branch• AgBiz Masters program• SmartStart program• Credit life insurance• Refinancing• Rural home loans• RSVP to one of

AgChoice’s meetings

“Hi, I’m Ruthy. Can I help with your financial information or loan processing inquiries?”

• Copies of prior year’s’ IRS forms: 1098–1099 Equity statement

• Copies of most recent balance sheet back to the customer

• Patronage questions • Basis of amount• Timeframe for distribution• How much from each loan• Allocated surplus questions

• Loan documents• Were they mailed out yet?• Did we receive them back yet?

“Hi, I’m Linda. Can I help you with questions about:”

• FastCash service • FastCash advances• AutoDraft support• Set up your AutoDraft account• Set up AutoDraft billing statements• Change your AutoDraft

account number• Stock retirements• Loan payoff amounts

The Customer Care Team at AgChoice takes great pride in helping the people who call into our branches. Regardless of your need, one of these talented service specialists will be able to assist you. We encourage you to take advantage of this new service resource by explaining your need or reason for calling right up front. You will appreciate the fast, friendly, helpful service they provide. n


“My family has built a successful farming operation. It consists of 7,000 acres of corn and beans, about half of which is owned. My parents, both in their late sixties, do not have any plans to pass the farm on to the next generation. Dad says, ‘There will just be an auction, then we part ways.’ My three other brothers and I all work on the farm and have invested some money into equipment and land. Dad owns most of the farm and the equipment. My other brothers and their children have no desire to stay on the farm after dad quits. However, my two sons and I want to continue … My dad is quite stubborn, and he doesn’t believe there’s a future in agriculture. How do I approach this?”

This is just one example of the inquiries I receive on a daily basis asking the how, why, who and when of succession. Multigenerational succession is difficult and rare. The process is not easy, and the path is not always clear.

Past experience tells us that 70% of first generation operations will not transition to a second generation. Of those that do make it to a second generation, 90% will not go to a third. And, of the meager few surviving after three generations, 96% will not go to a fourth. Though your situation may be different, past experience forewarns dismal results.

Succession will not happen without effort, determination and a plan. Noteworthy achievement is difficult in any endeavor, especially related to family, business and/or finance. Combine these highly charged themes with the emotions of family business and you

may create a flash flame that, at best, destroys only the business and, at worst, the family. Succession planning can be intimidating. Done wrong, it can be expensive. Done right, it’ll be a rewarding experience for the owner, the family and the farm.

For this farmer, action, no matter how difficult, is critical. Right now he’s caught between a rock (Dad) and a hard place (his brothers who have no desire to stay on the farm). As a family business, these people are risking everything. They will lose the farm and future opportunities because they suffer from:

1. A lack of effective communication.

2. No focus on common objectives.

3. A reluctance to face differences and work through difficult issues.

I recommend this farmer take a stand and resolve that ‘failure is not an option.’ After

the decisions you Make— the Actions you takeBy Kevin Spafford, Farm Journal’s succession planning expert

FeAtUre stOry

meeting with countless agribusiness owners, I’ve found that the reasons for not planning boil down to a few common rationalizations. To start with, succession planning is often confused with estate planning. The goal of succession is to transition an ongoing-concern to a prepared next generation. An estate plan is intent on minimizing the estate tax and transfer obligations in case of the owner’s premature death. Though similar, the two pursuits can suggest opposing actions that undermine the long-term viability of the operation.

Secondly, most families rely on their current advisors—CPA, attorney, financial planner, etc.—for help. They hope these trusted professionals will help facilitate a constructive conversation about succession. Yet, due to the emotional demands of succession planning, most advisors will not engage in the process. They’re not willing to risk a relationship in a pursuit so emotionally charged and difficult to manage. This reluctance leaves most owners confused and bewildered. They struggle to find assistance, and usually give up over time.

Thirdly, until now there were no constructive tools and comprehensive planning models to facilitate the succession planning needs of agribusiness owners. Many farming operations are built around preserving a lifestyle, rather than generating a return on investment. In the past, leadership training consisted of good parenting and a strong back; not necessarily a professional development plan. The complexity of farming requires specialized methods, continuing improvement in leadership and defined methodologies.

Finally, a reluctance to address the difficult issues in succession (fair distributions, inactive family members and/or in-laws) pose major stumbling blocks for most family business owners. But, a properly designed and judiciously implemented succession plan creates a better outcome for family business owners and their successors. The primary purpose of succession planning is to promote, preserve and protect the family’s most valuable asset. A comprehensive plan removes uncertainty, mitigates risk and allows the owner to exercise control.

A succession plan is far more than a binder full of legal documents and a life insurance policy. It’s founded on common

goals and shared dreams. It ensures a family’s financial security and the operation’s capital resources. Planning for succession is a big step on the road to long-term success. As part of the solution, and to address the succession planning needs of America’s agricultural community, Farm Journal introduced the Legacy Project in 2008. The Legacy Project is supported by a philanthropic grant from Pioneer Hi-Bred (a DuPont Business). It provides good information, relevant tools and practical experiences to guide families through generational transition. The goal of the Project is to cultivate multigenerational success in the agricultural community.

The Farm Journal Legacy Project is designed to help families have constructive conversations, define common goals, tackle the difficult issues, use a proven planning process and take action. Your farm, the family and your future depend on the decisions you make and the actions you take. The Legacy Project is far more than talking points. We’re intent on making a difference and improving the dismal results of agriculture’s past. The far-reaching objectives of the Legacy Project include:

• Passing viable family farming operations on to the next generation.

• Promoting agriculture as a profession.

• Becoming the cornerstone of the conversation to protect our nation’s food sovereignty.

If you struggle with where to begin and who can help, we invite you to access the resources available through the Legacy Project (www.FarmJournalLegacyProject.com). It should be the next step in reinforcing your succession intentions. Whether just beginning or looking for a second opinion, the tools, information and experiences are designed to help. n

The Farm Journal Legacy Project is

designed to help families have constructive

conversations, define common goals, tackle

the difficult issues, use a proven planning process

and take action.

Kevin Spafford serves as Farm Journal’s succession planning expert. His firm, Legacy by Design, works with farm families from coast to coast, guiding them through the succession process. Contact Kevin at (877) 523-7411 or [email protected].


Ask your loan officer to have one of our specialists contact you. AgChoice is well prepared to help lead you and your family through a successful transition planning process.


rUrAl livinG

What’s your lifelong dream? For some, it may be to own a home in the country and for others it may be to operate a part-time farm in addition to a full-time career. AgChoice Farm Credit is pleased to be a part of making dreams come true every day. While we are committed to our strong agricultural roots, we also recognize the importance of supporting others who want to live and work in our rural communities.

Read this article as we take a look at the lives of three AgChoice Farm Credit customer-owners and how we’ve been able to assist them in living out their dreams in rural Pennsylvania.

Stacy Bollinger & Josh GemberlingMount Pleasant Mills, Pa.

For Stacy Bollinger and Josh Gemberling, completion of their new home in Mount Pleasant Mills can’t come soon enough. The young, engaged couple is looking forward to moving into their expansive modular built home on just over three acres beside Stacy’s parents’ house.

“We discussed renting or buying an existing house, but we’re happy that we’re

building our home,” said Stacy and Josh. “We can make it what we want it to be.”

Although Josh has a full-time job as a restaurant manager, he willingly took on the role of general contractor for their project. Josh has many family members involved in the construction business, which has helped him in understanding the process involved with building a modular house. Stacy works as a physician’s assistant and is also very involved in making the decisions for their new home.

While it is still a month or two until Stacy and Josh plan to move in, they are

excited about the recent progress with the build, especially since it had a bit of a slow start. Stacy and Josh began the project last September with a local bank and found the bank difficult to work with, running into problems releasing the three acres of land from Stacy’s parents’ mortgage as well as requirements with the well.

Stacy and Josh were extremely pleased to learn about AgChoice Farm Credit and its flexibility in working with customers in their situation. “AgChoice has been great,” they explained. “Our loan officer, Samantha Bouder, is always available if we have any questions.”

Stacy and Josh first approached AgChoice in February, and have been able to move forward with their project at a much faster pace since then. Loan documents were signed in mid-May and construction immediately followed. In fact, the entire house was basically built within a two-day time period, with the six main pieces of the house being put together in only four hours. Now, they are working on some of the other details including installing electrical and plumbing, putting in a septic

Living the DreamBy Raechel Sattazahn, AgChoice Farm Credit Marketing Officer

Loan Officer Samantha Bouder assesses progress on the construction project with Josh Gemberling and Stacy Bollinger

Bollinger and Gemberling’s modular built house

The Mager family (from the left): Ron, Jamie, Chelsea and Rita


system, finishing the siding and adding a porch, breezeway and garage.

Josh and Stacy are extremely excited for the completion of their home and moving in. It’s easy to see that they can’t wait to begin their life together in a new home that they can call their own. In fact, they’ve already started talking about where they will put Christmas trees during the holidays.

Ron & Rita MagerButler, Pa.

In 2005, Ron and Rita Mager bought a 13-acre farm that is tucked just outside of the hubbub of Butler, Pa. “We immediately fell in love with the property,” said Rita. “Our daughters, Chelsea and Jamie, always wanted horses and this was the perfect location.”

At the time they were looking at properties, Ron and Rita were living in nearby Connoquenessing and appreciated how conveniently located the farm was. The Magers both have full-time jobs, Ron working as an electrical engineer and Rita working for a local health center. Additionally, they own and operate a local martial arts business and own two other commercial properties and three residential properties. With so much to juggle, plus taking care of horses and 13 extra acres, convenience and location were very important to the Magers.

“Although the farm can be lots of work, our entire family works as a team,” shared Ron and Rita. Chelsea and Jamie have both taken an active interest in their three horses and help with the daily chores. Jamie, 14, enjoys pleasure riding and jumping while Chelsea, 17, likes to barrel race and wants to pursue her interest in animals by attending a veterinary technician program after high

school. With both girls involved in 4-H, Rita has also become involved as a 4-H leader for the Powder Mill Trail Riders club.

The Magers value AgChoice Farm Credit for helping them to pursue their dream when many other banks simply weren’t interested because of the type of property that it involved. “AgChoice has been wonderful over the years,” said Rita. A couple of years ago, Ron lost his job and the Magers immediately approached AgChoice about the situation. AgChoice provided an extension for one month, and Ron was able to find a new job in the next week or so. “It was a relief for us, and we appreciate AgChoice for understanding.” Since then, the Magers worked with AgChoice on note modifications as well as participated in many local AgChoice events.

While the Magers are still able to keep up with their busy lives, it is clear that the entire family enjoys living on a small farm and carrying out the lifestyle that they chose.

Bill & Jana LoweFelton, Pa.

“After seven years of looking, we knew that we wanted to buy this farm,” explained Bill and Jana Lowe while gently swaying on their porch swing. Buying the 70-acre farm in southern York County supported a lifelong goal of operating a farm in addition to keeping their full-time careers.

“Farm Credit helped us out a lot when we first started looking at farms,” said Bill. “We were a young couple and the staff at Farm Credit helped us to set goals and learn

what we could afford. After many years of saving every penny plus having the equity that we had in our house that we owned, we felt comfortable purchasing this farm in 1997.”

The hilly countryside was perfect for the Lowes’ endeavor to start a commercial meat goat operation. Jana grew up on a dairy farm and Bill grew up on a crop farm, also working on dairy and dairy goat operations throughout high school. But Bill and Jana always knew that they didn’t want to be tied to an operation like dairy farming. Instead, raising goats has been a way for them to run an agricultural business while maintaining their careers off-farm where both Bill and Jana work for local electric companies.

Today, the Lowes have 150 goats that pepper the hills behind their house. The Lowes admit that sometimes, especially during kidding season, their operation seems more like a full-time job. Recently, Bill had rotator cuff surgery making it a challenge for him to do much of the feeding, but the entire family works together to get the chores done every day.

“It’s been a great place to raise our family,” explained Jana. Their children, Katy and Sam, regularly help on the farm where needed. While Sam will only be entering ninth grade in the fall, Katy is nearing the end of high school and is starting to look at colleges, hoping to pursue her interest in animal sciences. “When I see Katy working with the goats, I know that she’s found her niche and having this farm helped her to develop that interest,” Jana said.

What started as a way for Bill and Jana Lowe to “get back to their roots” has developed into a lifestyle for the Lowe family, and AgChoice is pleased to be a part of making that dream come true. n

Ron and Rita Mager meet with their loan officer, Jim McGinnis

Bill and Jana Lowe talk about their herd of goats with Loan Officer Bruce Miller

Goats on the Lowe farm


edUCAtiOnAl OPPOrtUnities

wAnted: Young or Beginning & Small FarmersBy Raechel Sattazahn, AgChoice Farm Credit Marketing Officer

Program Qualifications• Are you a young farmer? – A

farmer whose age is 35 years or less.

• Are you a beginning and small farmer? – A farmer with 10 years or less farming experience and whose annual gross agricultural sales are less than $250,000.

If you match either of these criteria, you are most likely eligible to register for SmartStart and AgBiz Masters. Sign up today!

Are you a young or beginning and small farmer that is looking to take your skills to the next level? If so, AgChoice wants you to be a part of SmartStart and AgBiz Masters, our two programs designed to help prepare you for future success!

About SmartStartYoung or beginning and small farmers registered in SmartStart can earn educational credits for participating in seminars and workshops that enhance your financial, business or production management skills. Not only does this help you to be a more successful business operator, but the credits accumulate and can result in interest rate reductions on your term and operating loans with AgChoice Farm Credit! Qualifying educational programs include AgChoice-sponsored programs such as Ag Forums and AgBiz Masters as well as outside programs offered by Extension, industry organizations, universities or many others.

Each educational workshop submitted for SmartStart credits is assessed, and credits are assigned based on the duration of the program and topics covered. Credits accumulate over the two most recent years and result in the following interest rate reductions on a new loan:

SmartStart Credits Interest Rate Reduction0–4 credits 0.25% interest rate reduction for 3 years5–9 credits 0.50% interest rate reduction for 3 years10+ credits 0.75% interest rate reduction for 5 years

How can I get started in SmartStart?Join AgChoice’s SmartStart program today and earn credits to benefit you and your business. Follow the steps outlined below and you’ll be on your way to a SmartStart!

1. Register for SmartStart by visiting www.agchoice.com/farms/smartstart. You do not need to be a current customer of AgChoice Farm Credit to enroll in the program. Registration is free.

2. Attend educational programs of your choice. Be sure to save the seminar agenda and/or meeting invitation to submit for credits.

3. To submit programs for credits, complete the online SmartStart Application for Credits form at www.agchoice.com/farms/smartstart. You may also work with your loan officer or local branch office to submit this information.

4. Let your credits accumulate! Credits earned in the most recent two years will count towards the appropriate interest rate reduction on any new AgChoice loans.

For more information on SmartStart, email [email protected] or contact your local branch office at 800-998-5557.

“By participating in the SmartStart program, we have been able to take advantage of an interest rate reduction that we used on our new building project. Attending the meetings not only allows us to get credits toward the rate reduction, but also gives us the opportunity to learn from others and get refreshed on different practices that we can use on our operation. This will definitely help as we grow our business.”

Galen & Marjorie Groff – McVeytown, Pa.

About AgBiz MastersAgBiz Masters is an interactive, educational learning series designed specifically for young and beginning farmers interested in honing their business and financial management skills. The program takes a blended learning approach where participants complete on-demand, eLearning modules and activities, coupled with face-to-face regional workshops. Couples and business partners are encouraged to enroll in the program together to gain the most value from the program.

AgBiz Masters is a two-year series where you enroll in one year of the program at a time.

MastersAgBizA Learning Series for Young & Beginning Farmers

Topics covered in year one include:• Megatrends of Agriculture• Strategic Business Planning• Preparing for Your Lender• Constructing a Balance Sheet• Constructing an Income Statement

and Cash Flow Projection

The interactive online modules take approximately one hour each to complete. In addition to the modules, you will participate in online discussion forums and exams, as well as complete assignments. Two face-to-face workshops are held each year to supplement the online learning and allow discussions and feedback among participants and facilitators. Workshops are held in 10–12 locations simultaneously across Pennsylvania and neighboring states, and speakers present through videoconference technology. These seminars are intended to give you the opportunity to learn from leading industry experts while also giving you the chance to network with other young and beginning farmers.

Collaboration is key to AgBiz Masters. The program was developed through the cooperation of more than 20 agricultural organizations. AgChoice Farm Credit is a program partner with AgBiz Masters and also provides all of the administrative support. The cost of AgBiz Masters is subsidized for participants because of the support of the Center for Dairy Excellence, Pennsylvania’s Workforce Investment Board and financial contributors and program partners of AgBiz Masters.

Topics covered in year two include:• Understanding Lending Decisions• Farm Business Management Factors and

Benchmarks• Growth and Transition Management• Personal Financial Management• Communications, Ethics and Leadership

How can I enroll in AgBiz Masters?1. The next AgBiz Masters class will be held from November 2011 through March 2012.

Download an application or register online at www.AgBizMasters.com. Deadline to register is October 31, 2011. You do not need to be a current customer of AgChoice Farm Credit to enroll in the program.

2. The registration fee for one year of AgBiz Masters is $225. You may be eligible to receive scholarships and/or rebates following successful completion of the program. Check www.AgBizMasters.com for details.

Please note that couples and/or business partners may participate in the program jointly for the same fee, $225.

3. Wait for the program to kick off in November 2011 and get ready for a top-notch learning experience!

If you have any questions about AgBiz Masters, contact Raechel Sattazahn at [email protected] or call 800-349-3568 ext. 6016. n

“The economic conditions around dairy farming today place different demands on the farm owner-manager. High levels of volatility in milk prices and input costs can drive wide swings in profitability. To position our farm enterprise for success into the future, I am investing more of my time in developing my financial and business management skills. AgBiz Masters has been a valuable tool to improve these skills.”

Brooks Rynd – Cochranton, Pa

“When I first entered into the operation, I had a very limited business background. Joining AgChoice’s AgBiz Masters program has helped to give me a lot of the essentials for business and financial management. What I’ve learned is helping me to make decisions for the future of our business and includes focusing on continued diversification, as well as new ways to sell and market our products.”

Sidney Kuhn – Ortanna, Pa.

SmartStart participants

enrolled in AgBiz Masters can earn up to seven SmartStart

credits each year!



Added-vAlUe serviCes

It takes great people to make a great business. We know that first-hand at AgChoice and it applies to your business as well. AgChoice is ready to help you make your business an attractive career choice for both your family and non-family employees.

You must compete for the best employees to make your business a success. Despite a weak economy in recent years, finding good employees remains a tough challenge. Employees with both high-value skills and a strong work ethic form the backbone of a successful business. They are the employees who take initiative, stay late to finish a project and take full responsibility for their work.

You also need to compete to attract and retain your family employees. Even though they grew up in your business, do not assume your children will stay employed for their entire careers out of family loyalty. Farm kids often possess a strong work ethic that makes them attractive to other employers in your area.

So you need to make your business a great place to work, for your family and non-family employees alike. What is it like to work for you? Is it a fulfilling experience or something less? Does each job meet the employees’ needs or is it just a paycheck to them until something better comes along?

Your goal should be to create a work culture that fosters a sense of commitment to a common purpose among your employees. Committed employees perform at higher levels, are goal-focused and tend to stay longer in their jobs. Consider these factors that can lead to favorable employee commitment:

• Mission and purpose. Committed employees want to believe that their work is important and that it adds value to society and to the business. Make sure your employees understand the non-financial reasons that you work so hard in and on your business.

• Feedback and recognition. Committed employees want to be recognized for their efforts with regular feedback and gratitude. A lack of positive feedback, especially among higher performing employees, can be discouraging. Make positive recognition a regular part of your valuable employees’ work experiences.

• Participation. Committed employees want to engage their minds in their work in addition to their hands; they have ideas about how to carry out their tasks better, faster and more efficiently. Wise managers recognize and encourage this desire to make things better. They listen and make

changes based on employee ideas. This not only improves the business, it reinforces employee commitment. Employee relationship factors are indeed critical, but so are your compensation and benefits programs to satisfy more of your employee needs. Even committed employees can become discouraged and leave if their overall compensation package is lacking. Your rate of wage and salary compensation is obviously important to employee satisfaction, but it is not the only compensation factor to consider. Other common employee benefits include:

• Health insurance. Given the high cost of health insurance, group health insurance

can be a key employee benefit; but it is not cheap. A wide range of health insurance plan options and cost sharing arrangements are available to employers. Review your employer health insurance program often, shop your plan regularly to limit annual premium increases and consider cost savings ideas like a Health Reimbursement Account (HRA), a cafeteria plan or a group Health Savings Account (HSA) plan.

• Group disability insurance. This insurance coverage is the most important risk protection, replacing your employees’ paychecks in the event of serious chronic illness or disabling injury and is often affordable in group form.

• Life insurance. This benefit can bring financial peace of mind to both your employees and their dependents.

• Retirement benefits. A variety of employee retirement plan options are available to help both you and your employees save on a tax advantaged basis.

• Deferred compensation. Reward and retain select key employees with additional compensation that is payable in the future based on terms that you determine.

• Flex schedules. Ag employers can sometimes offer flexible weekly hours and seasonal schedules that fit employees’ lifestyle goals.

AgChoice can offer a number of employee benefit solutions to make your business a more attractive place to work. Our consultants can analyze your current human resource practices and improve employee commitment and performance. We can also deliver employee benefit programs flexible enough to meet your employee needs and still fit into your budget. Ask your loan officer to have one of our specialists contact you. n

Making Your Agribusiness a Great Place to WorkBy Richard E. Stup, Ph.D., AgChoice Farm Credit Director of Business Management Services

Your goal should be to create a work culture that fosters a sense of commitment to a common purpose

among your employees.

Member SavingsTo receive the discounts, make sure you identify yourself as a Farm Credit Member and provide member ID’s as listed below.

National, Alamo & Enterprise Car Rentals:--Alamo: Visit alamo.com or call 800-462-5266 and use Farm Credit ID: 308635.--National: Go to nationalcar.com or call 800-328-4300 & use Corporate ID: 5700069.--Enterprise: Go to enterprise.com or call 800-593-0505 & use Customer #: XZ12G01. PIN is: FAR.

Sprint Wireless Voice/Data Services & Equipment:Save 12% on your monthly service charges. Go to sprint.com/farmcredit or call 866-853-4931. If requested, please reference Farm Credit Council by phone and MFCCS_ZZZ online.

Ohama Steaks:Save 10% every time you shop online. Visit fccservices.com and click on the Gourmet Foods tab under the National Discount Programs to get the link to our customized Ohama Steaks online store.

Floral Ambiance:Go to floralambiance.com or call 800-672-4137. Use promotion code fccsflowers to save $10 off orders valued at $30 or more. Note: The owner of this business is a Farm Credit loan customer!

1-800-Flowers:Flowers, plants, gift baskets, etc. Go to 1800flowers.com or call 888-755-7474. Use promotion code FCCS to receive a 15% discount.

Dell Computers:Save up to 30% depending on configuration. Go to dell.com/farmcredit or call800.695.8133. Use member ID CS25031329

United Van Lines:Moves within CA, FL, or TX, or between any of the 48 contiguous states. Discounts as much as 65% are only available via United agent, Barrett Moving & Storage. Call 800-879-1283 or email [email protected].

SUMMER 2011

Have questions? Contact Brianna at [email protected] or call 888-275-3227 x3247


nAtiOnAl disCOUnt PrOGrAM

Member SavingsTo receive the discounts, make sure you identify yourself as a Farm Credit Member and provide member ID’s as listed below.

National, Alamo & Enterprise Car Rentals:--Alamo: Visit alamo.com or call 800-462-5266 and use Farm Credit ID: 308635.--National: Go to nationalcar.com or call 800-328-4300 & use Corporate ID: 5700069.--Enterprise: Go to enterprise.com or call 800-593-0505 & use Customer #: XZ12G01. PIN is: FAR.

Sprint Wireless Voice/Data Services & Equipment:Save 12% on your monthly service charges. Go to sprint.com/farmcredit or call 866-853-4931. If requested, please reference Farm Credit Council by phone and MFCCS_ZZZ online.

Ohama Steaks:Save 10% every time you shop online. Visit fccservices.com and click on the Gourmet Foods tab under the National Discount Programs to get the link to our customized Ohama Steaks online store.

Floral Ambiance:Go to floralambiance.com or call 800-672-4137. Use promotion code fccsflowers to save $10 off orders valued at $30 or more. Note: The owner of this business is a Farm Credit loan customer!

1-800-Flowers:Flowers, plants, gift baskets, etc. Go to 1800flowers.com or call 888-755-7474. Use promotion code FCCS to receive a 15% discount.

Dell Computers:Save up to 30% depending on configuration. Go to dell.com/farmcredit or call800.695.8133. Use member ID CS25031329

United Van Lines:Moves within CA, FL, or TX, or between any of the 48 contiguous states. Discounts as much as 65% are only available via United agent, Barrett Moving & Storage. Call 800-879-1283 or email [email protected].

SUMMER 2011


1-800-Flowers: Flowers, plants, gift baskets, etc. Go to 1800flowers.com or call 888-755-7474. Use promotion code FCCS to receive a 15% discount.

Floral Ambiance: Go to floralambiance.com or call 800-672-4137. Use promotion code fccsflowers to save $10 on orders valued at $30 or more. Note: the owner of this business is a Farm Credit loan customer!

Dell Computers: Save up to 30% depending on configuration. Go to dell.com/farmcredit or call 800-695-8133. Use member ID CS25031329.

National, Alamo and Enterprise Car Rentals: -Alamo: Visit alamo.com or call 800-462-5266 and use Farm Credit ID: 308635. -National: Go to nationalcar.com or call 800-328-4300 and use Corporate ID: 5700069. -Enterprise: Go to enterprise.com or call 800-593-0505 and use Customer #: XZ12G01. PIN is: FAR.

Omaha Steaks: Save 10% every time you shop online. Visit fccservices.com and click on the Gourmet Foods tab under the National Discount Programs to get the link to our customized Omaha Steaks online store.

Sprint Wireless Voice/Data Services & Equipment: Save 12% on your monthly service charges. Go to sprint.com/farmcredit or call 866-853-4931. If requested, please reference Farm Credit Council by phone and MFCCS_ZZZ online.

United Van Lines: Moves within CA, FL or TX, or between any of the 48 contiguous states. Discounts as much as 65% are only available via United agent, Barret Moving & Storage. Call 800-879-1283 or email [email protected].


Discount Programs Available to AgChoice Customer-OwnersTo recieve the discounts, make sure you identify yourself as a Farm Credit Member and provide member ID’s as listed below.


reCiPes

Marissa Weidensaul (SUN Area)2010–2011 Pennsylvania

Dairy Princess

Jesse Kline (Franklin County) Pennsylvania Alternate

Dairy Princess

Elizabeth Weber (Mercer County) Pennsylvania Alternate

Dairy Princess

Grandpa’s Roasted Freezer Corn

Ingredients: 18 cups corn (cut from cob)

1 pt. half and half 1 lb. butter

Directions: Mix together in a large roaster, add salt and pepper to taste as desired. Bake for one hour at 350 degrees stirring every

15 minutes. Cool completely and freeze. Makes about 9 pints.

Royal RecipesSince 1956, thousands of young people and their families have been involved in the promotion of the Pennsylvania dairy industry at the local level through the Dairy Princess Program. During this timeframe, Dairy Princesses have been selected across our great state to serve as spokeswomen for the industry, telling the story of milk and dairy products for all to hear. These young women participate in a rigorous training seminar where they learn public speaking tips, media skills, production facts and nutrition information. They are then ready to tell dairy’s story through endless opportunities including speaking engagements with farm and non-farm audiences alike. Dairy Princesses talk on the radio, write newspaper articles and prepare dairy recipes. They visit with consumers at grocery stores and fairs, answer questions of school children and reminisce with senior citizens about farming in days past. These young ladies take this responsibility very seriously and we thank them for all of their hard work and dedication throughout their reigns.

Listed below are a few family favorite summer recipes from the current Pennsylvania royalty team. These young women travel across the state promoting dairy products to consumers of all ages and we wish them the best of luck with all of the promotional events this summer. n

Noodles with Cottage Cheese

Ingredients: ¼ cup chopped onions 3 tbsp. melted butter

1 cup sour cream 1 cup cottage cheese

½ cup milk 2 tbsp. sugar

1 tsp. salt 8 oz. noodles cooked and drained

Topping: 1 cup crushed cornflakes

3 tbsp. butter

Directions: Sauté onion in Butter, mix in Sour Cream, Cottage Cheese, Milk, sugar and salt. Toss with noodles. Pour into a greased 9 x 11 inch baking dish. Top prepared dish with

cornflakes and small pieces of Butter. Bake at 350 degrees for 50 minutes.

Layered Salad Ingredients:

1 head shredded lettuce 1 cup chopped celery 1 medium diced onion

½ cup chopped green pepper ½ cup sliced carrots 10 oz. frozen peas

4 hard boiled eggs (chopped or sliced) 1 cup sour cream

2 cups mayonnaise 3 tbsp. sugar

8 oz. grated longhorn cheese 8 slices bacon crumbled

Directions:Layer each vegetable and eggs on top of lettuce in a 9x13 inch baking pan or glass bowl. Mix Sour Cream, mayonnaise and

sugar and spread over top like frosting. Top with Cheese and bacon. Cover with plastic

and refrigerate 24 hours or overnight.

2010–2011 State Royalty Team (from left): Jesse Kline, Marissa Weidensaul and Elizabeth Weber

FinAnCiAl rePOrt


FinAnCiAl rePOrt

The shareholders’ investment in the association is materially affected by the financial condition and results of operations of AgFirst Farm Credit Bank. Copies of AgFirst’s quarterly and annual financial reports to shareholders are available free of charge at www.agfirst.com, or by writing to AgFirst Farm Credit Bank, Financial reporting Department, P.O. Box 1499, Columbia, SC 29202-1499.

ConsolidatedStatements of Income

(uNAuDITeD)

ConsolidatedBalance Sheets

March 31, December 31,(dollars in thousands) 2011 2010

(unaudited) (audited)

AssetsCash —$ 355$ Investment securities: Held to maturity (fair value of $2,597 and $2,597 respectively) 2,392 2,392

Total investment securities 2,392 2,392

Loans 1,285,060 1,304,531 Less: allowance for loan losses 8,366 8,472

Net loans 1,276,694 1,296,059

Accrued interest receivable 6,232 5,218 Investments in other Farm Credit institutions 30,366 30,719 Premises and equipment, net 3,655 3,701 Other property owned 1,843 2,397 Due from AgFirst Farm Credit Bank 3,263 16,617 Other assets 6,547 7,001

Total assets 1,330,992$ 1,364,459$

LiabilitiesNotes payable to AgFirst Farm Credit Bank 1,064,548$ 1,101,436$ Accrued interest payable 2,316 2,379 Patronage refund payable 884 12,353 Other liabilities 21,858 13,467

Total liabilities 1,089,606 1,129,635

Commitments and contingencies

Members' EquityCapital stock and participation certificates 11,098 11,179 Retained earnings Allocated 121,644 121,535 Unallocated 108,652 102,115 Accumulated other comprehensive income (loss) (8) (5)

AgChoice Farm Credit, ACA

Consolidated Balance Sheets

Accumulated other comprehensive income (loss) (8) (5)

Total members' equity 241,386 234,824

Total liabilities and members' equity 1,330,992$ 1,364,459$

(dollars in thousands) 2011 2010

Interest IncomeInvestment securities 37$ —$ Loans 16,902 17,378

Total interest income 16,939 17,378

Interest ExpenseNotes payable to AgFirst Farm Credit Bank 6,921 8,398

Net interest income 10,018 8,980 Provision for (reversal of allowance for) loan losses 204 1,118

Net interest income after provision for (reversal of allowance for) loan losses 9,814 7,862

Noninterest IncomeLoan fees 478 456 Fees for financially related services 199 169 Equity in earnings of other Farm Credit institutions 3,261 3,316 Gains (losses) on other property owned, net (997) 6 Gains (losses) from sale of rural home loans 82 28 Gains (losses) on sales of premises and equipment, net 13 12 Insurance Fund refunds — 1,809 Other noninterest income (expense) (10) 85

Total noninterest income 3,026 5,881

Noninterest ExpenseSalaries and employee benefits 4,123 3,716 Occupancy and equipment 307 284 Insurance Fund premium 158 274 Other operating expenses 1,401 1,249

Total noninterest expense 5,989 5,523

Income before income taxes 6,851 8,220 Provision (benefit) for income taxes 48 14

Net income 6 803$ 8 206$

For the three monthsended March 31,

Consolidated Statements of Income (unaudited)

Net income 6,803$ 8,206$

March 31, December 31,(dollars in thousands) 2011 2010

(unaudited) (audited)

AssetsCash —$ 355$ Investment securities: Held to maturity (fair value of $2,597 and $2,597 respectively) 2,392 2,392

Total investment securities 2,392 2,392

Loans 1,285,060 1,304,531 Less: allowance for loan losses 8,366 8,472

Net loans 1,276,694 1,296,059

Accrued interest receivable 6,232 5,218 Investments in other Farm Credit institutions 30,366 30,719 Premises and equipment, net 3,655 3,701 Other property owned 1,843 2,397 Due from AgFirst Farm Credit Bank 3,263 16,617 Other assets 6,547 7,001

Total assets 1,330,992$ 1,364,459$

LiabilitiesNotes payable to AgFirst Farm Credit Bank 1,064,548$ 1,101,436$ Accrued interest payable 2,316 2,379 Patronage refund payable 884 12,353 Other liabilities 21,858 13,467

Total liabilities 1,089,606 1,129,635

Commitments and contingencies

Members' EquityCapital stock and participation certificates 11,098 11,179 Retained earnings Allocated 121,644 121,535 Unallocated 108,652 102,115 Accumulated other comprehensive income (loss) (8) (5)

AgChoice Farm Credit, ACA

Consolidated Balance Sheets

Accumulated other comprehensive income (loss) (8) (5)

Total members' equity 241,386 234,824

Total liabilities and members' equity 1,330,992$ 1,364,459$

(dollars in thousands) 2011 2010

Interest IncomeInvestment securities 37$ —$ Loans 16,902 17,378

Total interest income 16,939 17,378

Interest ExpenseNotes payable to AgFirst Farm Credit Bank 6,921 8,398

Net interest income 10,018 8,980 Provision for (reversal of allowance for) loan losses 204 1,118

Net interest income after provision for (reversal of allowance for) loan losses 9,814 7,862

Noninterest IncomeLoan fees 478 456 Fees for financially related services 199 169 Equity in earnings of other Farm Credit institutions 3,261 3,316 Gains (losses) on other property owned, net (997) 6 Gains (losses) from sale of rural home loans 82 28 Gains (losses) on sales of premises and equipment, net 13 12 Insurance Fund refunds — 1,809 Other noninterest income (expense) (10) 85

Total noninterest income 3,026 5,881

Noninterest ExpenseSalaries and employee benefits 4,123 3,716 Occupancy and equipment 307 284 Insurance Fund premium 158 274 Other operating expenses 1,401 1,249

Total noninterest expense 5,989 5,523

Income before income taxes 6,851 8,220 Provision (benefit) for income taxes 48 14

Net income 6 803$ 8 206$

For the three monthsended March 31,

Consolidated Statements of Income (unaudited)

Net income 6,803$ 8,206$

AgChoice Farm Credit900 Bent Creek Blvd.Mechanicsburg, PA 17050

PrSrT STDu.S. POSTAGe

PAIDCOLumBIA SCPermIT 1160

No purchase necessary. Promotion ends 9/30/11. Must be at least 18 years old and must be a legal U.S. resident of AL, DE, FL, NC, SC, MS, VA, WV, MD, PA, GA or Marion, Hamilton, Bradley, Polk, Sequatchie, Bledsoe, Rhea, Meigs, Roane, Loudon, McMinn or Monroe counties in TN; or Ballard, McCracken, Marshall, Carlisle, Hickman, Fulton, Graves, Calloway, Harrison, Scott, Bourbon, Montgomery, Clark, Fayette, Franklin, Marion, Washington, Anderson, Woodford, Mercer, Boyle, Jessamine, Madison, Garrard, or Lincoln county in KY; or Crawford, Erie, Hancock, Hardin, Henry, Huron, Lorain, Lucas, Marion, Morrow, Ottawa, Paulding, Putnam, Sandusky, Seneca, Van Wert, Wyandot or Wood county in OH; or Acadia, Allen, Ascension, Assumption, Avoyelles, Beauregard, Calcasieu, Caldwell, Cameron, Catahoula, Concordia, East Baton Rouge, East Carroll, East Feliciana, Evangeline, Franklin, Grant, Iberia, Iberville, Jefferson, Jefferson Davis, Lafayette, Lafourche, Lasalle, Livingston, Madison, Morehouse, Natchitoches, Orleans, Plaquemines, Pointe Coupee, Rapides, Richland, Sabine, St. Bernard, St. Charles, St. Helena, St. James, St. John the Baptist, St. Landry, St. Martin, St. Mary, St. Tammany, Tangipahoa, Tensas, Terrebonne, Vermillion, Vernon, Washington, West Baton Rouge, West Carroll, West Feliciana, Winn parishes in LA. For Official Rules and details visit www.ikeepitrural.com. Void where prohibited.

Calling all comfort foodies, health nuts, locavores, Meatosauruses, dessert

divas, casserole Picassos and other culinary artists!

Are you a local cooking legend? Have a killer recipe that is always the first

dish gone at the pot-luck? If so, your recipe could win you bread, chedda’,

greens—the kind that fills your bank account!

®

In the Kitchen

Visit ikeepitrural.com to enter!

a day in the life of a credit analyst - agchoice · agchoice farm credit • • summer 2011 a day...

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