Partnering for Success

We are strong believers in the value of education and experience. Over the spring 2012 semester, we partnered with a team of six University of Delaware College of Agriculture and Natural Resources undergraduate students to accomplish a market research project for our association.

The students were diversified in their age and majors such as statistics, resource economics, food and agribusiness marketing and management, and natural resource management. During the research project they were mentored by Dr. Tom Ilvento, professor of food and resource economics, and Laurie Wolinski, center director for the Northeast center for Risk Management Education.

The students gained experience in collecting, analyzing, and trending secondary data. They also were able to draw conclusions and make recommendations based on their analysis. At the end of the semester, the students made a final presentation to our marketing staff in our Dover, DE office. They did a great job!

Dr. Ilvento said, “We really appreciate the opportunity you (MidAtlantic Farm Credit) provided; this gave our students some real world experience.” Well, Dr. Ilvento, we are really happy to have worked with the students and enhance their college education, as well as teach them about the Farm Credit System, too.

So, are you an agribusiness or related company? Do you have market research projects that you would like completed? If so, consider partnering for success with a team of college students to prove you believe in the value of education and hands on experience. The connection we have now established between UD and MidAtlantic is a pure example of partnering for success. Great job, team!

Memorial Day: Thank a veteran, thank a farmer!

Your back porch is decked out in as many American flag, Uncle Sam, and other red, white, and blue patriotic decorations as you can find. The hamburgers are charring on the grill, fresh strawberries are atop your pretzel salad, and a fly just landed on your potato salad (well, we hope not, but we all know it happens). Your family and friends are filling up your driveway and everyone is definitely ready to visit, eat, and celebrate Memorial Day!

Now, we all know Memorial Day isn’t about a day off work or school, a family BBQ, or a vacation weekend, but to remember those currently serving our country and who sacrificed their lives for our freedom. The first Memorial Day was actually celebrated in 1865, following President Abraham Lincoln’s assassination to commemorate fallen Union soldiers of the Civil War. It is truly a day to thank our veterans and be proud to be American citizens.

To celebrate, many of us actually do convene on the back deck for a BBQ lunch and game of horseshoes. But, when you bite into that juicy burger or creamy potato salad, and as you’re savoring the rich pretzel salad, remember to thank a farmer for growing and producing the food that fills your flimsy paper plate.

So enjoy your Monday off work, your BBQ, or your weekend at the beach, but don’t forget, that when the sun sets and the fireworks begin, to thank a veteran and thank a farmer!

It's Easy Being Green: Keeping Cool

Heating and cooling total about 44 percent of your home’s energy costs, so careful attention to temperature settings can reap big savings. “Ceiling fans cool the room in summer and only cost 10 percent as much as air conditioning,” says Abby Buford, a spokesperson for Lowe’s. “And it’s easy to install one.” Lowe’s makes it especially easy with a whole website—lowes.com/energy—filled with videos and step by step instructions on tasks that will help you save money on your energy bills. Reverse the fan’s motor so that it’s running clockwise, and you’ll save money in the winter as well.

Another opportunity to save is by plugging up the holes in your home. “A lot of energy leaks out of a house,” says Dick McClary at Home Depot. Plug small holes with caulk (such as where input lines come into your home), and consider adding insulation to attics, the basement ceiling and around windows and doors. “But don’t forget that it’s air that provides the insulation—not the insulation itself,” says McClary. “Think of a double-paned window…it’s not the second layer of glass that makes the house tighter, it’s the trapped air between the layers. So don’t “squish” your insulation into a space— or you won’t be doing any good.” Other leaky areas include doors that don’t fit tightly (add weatherstripping), the fireplace flue (make sure it’s closed when not in use), and the empty space behind electrical outlets (add a pre-cut insulation layer).

When in doubt, says McClary, ask an expert—either a sales associate at your local store, or on the web. Most companies have complete sections dedicated to going green. “There’s a bigger emphasis than ever on educating the consumer,” says Kathleen Kuhn of HouseMaster. “Ask questions, take notes, and spend some time making small repairs and upgrades. I guarantee that small projects can pay off big—both for the value of your home, and for its energy efficiency.”



Article by Sandy Wieber, SVP Marketing, MidAtlantic Farm Credit

It's Easy Being Green: Getting in Hot Water

There are lots of other ways to save money on your water usage. By now, you know to take a shower instead of a bath (you’ll save about 50 percent of the water), to turn off the water when you’re brushing your teeth, and to run full loads, whether you’re doing the dishes or the laundry. But Kathleen Kuhn, CEO of HouseMaster Home Inspections, says that there are other easy fixes for do-it-yourselfers. “The least handy person can install water saving showerheads and faucets,” says Kuhn, “and save thousands of gallons of water a year.” All the parts you need are available at your local hardware store, or order the Niagara Water Conservation Kit at niagaraconservation.com for under twenty-five bucks. Kuhn also recommends turning the thermostat on your water heater to 120 degrees Fahrenheit. “That’s still hot, but it saves a lot of money heating the water,” she says. Save even more by purchasing an insulating wrap for your water heater, and wrap it around the tank.

Heating and cooling are a huge percent of your home's energy costs. Don't worry, we'll give you tips on "keeping cool" and saving big tomorrow.


Article by Sandy Wieber, SVP Marketing, MidAtlantic Farm Credit

It's Easy Being Green: Plugging Away

Your appliances are some of the biggest energy consumers in your whole house. And the biggest of the big is your refrigerator. “If you’ve been meaning to replace it but feel bad about getting something new when something old “sorta” works, think again,” says Danny Seo. “A refrigerator that’s ten years old is likely to be using twice as much energy today as the first day you plugged it in.” When you head out to the appliance department, look for ENERGY STAR rated refrigerators. They are the most efficient in their category and can save you hundreds of dollars in energy costs. “The ENERGY STAR rating will show you how efficient the motor is,” says Dick McClary, a department supervisor at Home Depot in Towson, Maryland. “But a new front loading washing machine will save you a ton of money on water, too.” Front loading machines use only a small amount of water, which can save up to 7,000 gallons of water each year (or about 60 percent of what your current appliance uses).

There lots of other ways to save on water usage. We'll talk about getting out of "hot water" tomorrow!


Article by Sandy Wieber, SVP Marketing, MidAtlantic Farm Credit

It's Easy Being Green: Become a Vampire Slayer

You have vampires in your home. They’re not exactly undead, but they’re appliances that continue to suck energy even when they are turned off. According to the Department of Energy, vampire energy loss represents between five and eight percent of a single family home’s total electricity use per year. That’s almost an extra month’s bill! Luckily, these vampires are easy to stake. Unplug larger items, like plasma televisions, which can use the equivalent of about $160 a year (1,400 kiloWatt hours) when not in use. Or go to smarthomeusa.com and purchase an electrical strip that actually stops the current when the appliance is not in use (around $30). If you don’t want to turn the appliances off, try reducing the brightness of your television and computer screens by half, and power consumption of the entire machine will drop by about 30 percent.

You're appliances are also big energy consumers. We'll talk tomorrow about "plugging away".


Article by Sandy Wieber, SVP Marketing, MidAtlantic Farm Credit

It's Easy Being Green: Seeing the Light

You know that you should be saving energy at home. After all, in the United States, buildings (that includes your house) account for 36 percent of our total energy use, 65 percent of our electricity consumption, and 12 percent of all potable water consumed. In fact, according to the Green Building Resource Center, a typical 1,700 square foot wood frame home has the same environmental impact of clear-cutting one acre of forest. If that isn’t enough reason for you to save energy, consider this: saving energy can save you money. And you don’t have to be a contractor to make the changes necessary. “Sometimes the smallest changes can be the biggest changes,” says Danny Seo, former co-host of HGTV’s Red, Hot and Green.

see the light
“How easy is it to change a light bulb?” asks Linda Foy, a spokesperson for Baltimore Gas and Electric (BGE). “It’s one of the easiest steps that homeowners can take, but it can make a big impact.” Simply switch your regular light bulbs to CFLs (that’s compact fluorescent bulbs) and start saving money immediately. Regular incandescent light bulbs use more than 90 percent of their energy to generate heat, not light, which costs the country energy and the homeowner money. CFL’s use 75 percent less energy and last up to 10 times longer—saving you about anywhere from $30 - $65 over the life of the bulb. So, yes, throw out the bulbs you have and replace them now. Although the bulbs are a little more expensive than standard bulbs, you’ll see the savings quickly.

Did you know that you also have vampires in your home! True... check back tomorrow for more details!



Article by: Sandy Wieber, MidAtlantic Farm Credit SVP Marketing

MidAtlantic Farm Credit Announces Results of Election

MidAtlantic Farm Credit, an agricultural lending cooperative, recently announced the results of their annual election of board and nominating committee members.

The following were elected to serve on the cooperative's board of directors: Deborah A. Benner, Mt. Joy, PA and Jennifer L. Rhodes, Centreville, MD.

Benner, along with her husband, owns and operates Yippee Farms, a dairy operation consisting of three dairy facilities. They also grow alfalfa, rye, corn and other grains on 700 acres.

Rhodes owns and operates Deerfield Farms LLC, a 110-acre poultry and grain farm with her two sons. She is also employed as an extension educator for the Agriculture and Natural Resources, Univeristy of Maryland, Extension, Queen Anne's County.

Elected to serve on the 2013 nominating committee were: Alan D. Balmer, Lebanon, PA; Jerry A. Burner, Luray, VA; Kirk D. Carmean, Snow Hill, MD; David M. Crum, Walkersville, MD; Paul R. Dotterer, Union Bridge, MD; Timothy F. French, Woodstock, VA; Douglas W. Green, Princess Anne, MD; Robert M. Hutchison, Cordova, MD; Bryan C. Melvin, Wyoming, DE; Burton D. Messick, Laurel, DE; George O. Morris, Centreville, MD; and Jay L. Weaver, Myerstown, PA.

In order to serve as a director or on the nominating committee you must be a member/stockholder of MidAtlantic Farm Credit.


About MidAtlantic Farm Credit

MidAtlantic Farm Credit (MidAtlantic) is one of the largest agricultural lenders on the East Coast. Their chartered territory includes parts of Delaware, Maryland, Pennsylvania, Virginia and West Virginia. They are part of the national Farm Credit System, a cooperative lender with more than 500,000 borrowers and a portfolio of over $178 billion.

MidAtlantic Farm Credit Reports First Quarter Financial Results

MidAtlantic Farm Credit, a members-owned cooperative and a lending institution of the nation-wide Farm Credit System, recently announced financial results for the first quarter of 2012.

Net income for the quarter was $10.7 million compared with $10.8 million for the first quarter of 2011. Net interest income for the first quarter was $16.8 million, the same as in the first quarter last year. Average loan volume for the first quarter was $2.187 billion, compared to $2.306 billion for the same period in 2011.

“Agricultural producers in our area are doing fairly well,” said Bob Frazee, president and CEO of MidAtlantic. “Commodity prices are generally good, and we’ve seen our membership strengthening their operations by managing their expenses and paying down some of their debt. In addition, the lack of growth in the housing sector is impacting some of our industries—especially nurseries and greenhouses, sawmilling, and timber.”

Members have been cautious about incurring more debt in MidAtlantic’s five-state territory; the lender’s portfolio has been showing a positive trend in credit quality. Nonaccrual loans decreased to $64.4 million in the first quarter of 2012, compared to $69.6 million at December 31, 2011 and $85.2 million at March 31, 2011. The Association’s nonaccrual loans as a percentage of total loans also decreased to 3.00 percent at the end of the quarter, compared to 3.21 percent at the end of 2011.

“Since the peak during the third quarter of 2011--when we were managing over $90 million of nonaccrual loans--we have successfully worked with our borrowers to reduce the nonaccrual loans while helping to preserve other agriculture related activities which had some dependency on the stressed borrowers businesses,” said Frazee.

During the first quarter of 2012, the Association recorded a provision for loan losses of $1.75 million, compared to $2.0 million in the first quarter of 2011.

MidAtlantic’s capital ratios remain well in excess of regulatory minimums. At March 31, 2012, shareholder’s equity totaled $427.8 million, and the permanent capital ratio was 17.43 percent, compared with the 7.00 percent minimum mandated by the Farm Credit Administration (FCA).

About MidAtlantic Farm Credit

MidAtlantic Farm Credit (MidAtlantic) is one of the largest agricultural lenders on the East Coast. Their chartered territory includes parts of Delaware, Maryland, Pennsylvania, Virginia and West Virginia. They are part of the national Farm Credit System, a cooperative lender with more than 500,000 borrowers and a portfolio of over $178 billion. For more information about MidAtlantic, visit http://www.mafc.com.

Lettuce, Thyme, and Beans.. Oh my!

Those are just a few of the things you will find at your neighborhood farmers market this month. Along with lots of other vegetables and herbs such as:

asparagus

chard

fava beans

garlic

green onions/scallions

new potatoes

oregano

parsley

parsnips

pea greens

radishes

rhubarb

spinach

strawberries

To find a farmers market in your neighborhood, visit USDA's website.

Tip #5 For Planning Your Home in the Country

So, we've talked about activity, location, knowing the area, and beginning your property search online. Tip #5 is zoning.

If you have grand plans for your site, wish to build a home or make improvements to an existing one, or want to ensure that a mall or highway isn’t in the offing nearby, contact the local zoning office:

Delaware: www.stateplanning.delaware.gov/information/counties.shtml www.stateplanning.delaware.gov/information/municipalities.shtml

Maryland: http://planning.maryland.gov/OurWork/localplanning.shtml http://planning.maryland.gov/OurWork/Counties/LocalPlanningByCounty.shtml

Pennsylvania: www.newpa.com/get-local-gov-support/community-planning

Virginia: http://portal.virginia.gov/- search “Zoning”

West Virginia: www.wv.gov/Pages/default.aspx - search "Zoning"

Good luck finding your perfect home in the country! And when you're ready for financing, be sure to give us a call or apply immediately online!

Article written by Jean Paffenback and republished from MidAtlantic Farm Credit's Farm Credit Leader Magazine.

Tip #4 For Planning Your Home in the Country

Begin your property search online.

Browsing Internet real estate listings is an efficient way to begin researching the wide array of rural properties and pricing, and you may even serendipitously discover a new-to-you town offering the perfect parcel of land. Through the property information available online, you can then search local government agencies to gain a sense of the area’s history, economic development, school system, tax assessment process, and more.

Realtors can be conveniently contacted by email with any questions you have about their properties. Putting Internet real estate resources to work for you can help narrow down your list of potential properties, and prepares you to be that much more focused when visiting the property and surrounding area. MidAtlantic Farm Credit’s Leader magazine also features great rural property listings for sale.

Check back tomorrow for Tip #5!

Article written by Jean Paffenback and republished from MidAtlantic Farm Credit's Farm Credit Leader Magazine.

Tip #3 For Planning Your Home in the Country

Yesterday we talked about location. But you also need research the surrounding area. And that's why tip #3 is know the area!

If at all possible, spend some extended time in your chosen area before buying. Cindy suggests vacationing there to get acquainted with the people and the environs. Seasonal visits can also help you gauge, for instance, how passable area roads are after a snowfall and how heavy spring rains affect the stream that runs through your prospective land.

A healthy dose of respect for the area is paramount, too—remember that it was precisely the area’s wide open spaces uncluttered by strip malls, slower pace and beauty that attracted you to begin with, and that some adaptations may be necessary on your part, Cindy counsels. In the absence of corner convenience stores and fast food restaurants, for instance, you may need to be more thorough in your shopping and travel a little farther to do it. “You may find yourself behind a tractor in traffic. Be patient. Accept that you’ll smell manure occasionally, especially when a farmer is fertilizing. Don’t expect people to change for you,” Cindy says.

And for heaven’s sake, don’t feed the bears! Cindy relates that a colleague sold a house in a rural gated community to a couple who began feeding a bear that wandered onto their land. In short order, when the couple would return home the bear would sometimes be on their front lawn and they would have to try frightening it away or wait until it moved on since they didn’t have a garage to make a safe entry into their home. On one particular occasion, the couple left the glass door open that led onto their deck, and the bear broke through the screen door into their kitchen, which it promptly ransacked. While the couple was unharmed, they wanted to sell their home—immediately! More often than not, however, a carefully researched move to the country ends happily.

Check back tomorrow for Tip #4!

Article written by Jean Paffenback and republished from MidAtlantic Farm Credit's Farm Credit Leader Magazine.

Tip #2 For Planning Your Home in the Country

Yesterday, you read about the importance of knowing how you plan to use your land. Today, we're going to talk about location, location, location!

A home in the country will set the stage for making changes in your life, such as developing a hobby or enjoying a less stressful environment. But if you’re looking for a permanent versus a summer or weekend country home, remember that your daily routine will need to move with you.

For instance, if you commute to work each day, determine how far you are willing to travel each way, and limit your search to that area. Proximity to schools (if you have children), health care, and recreational resources must also be considered.

For some buyers, the farther off the beaten path a property is, the better. Others feel more secure with neighbors close by. Cindy suggests that buyers, especially urban dwellers accustomed to city life, conduct a nighttime drive-by of a remote property as a sort of reality check: “Turn off the car and the lights. Roll down the window, and just sit. Experience the absence of city lights, the quiet; there may even be animal sounds.” Indeed, Cindy advises that “you may be trading the sound of sirens for the sound of a rooster crowing!”

Check back tomorrow for Tip #3!

Article written by Jean Paffenback and republished from MidAtlantic Farm Credit's Farm Credit Leader Magazine.

5 Tips For Planning Your Home in the Country

From the Allegheny Mountains of Western Maryland to the rolling farmland of Pennsylvania to the quaint coastal towns of Delaware, the mid-Atlantic area offers something for everyone who is dreaming of their very own place in the country.

If you’ve been contemplating a move to a rural location, with some careful planning, research and legwork, you can make an informed property selection and start living the life of your dreams. To help get you started, following are a few tips to establish how you would like to use your property, choosing a location, and why it’s best to get to know the area before buying property there.

Tip #1 - Activity

Knowing how you wish to use your land will help define property features to look for, according to Cindy Stys, a Realtor and founder of Cindy Stys Equestrian and Country Properties, Ltd. who serves eastern Pennsylvania.

“Do you have a specific use in mind such as gardening, hunting or raising horses? Or do you just want to enjoy nature? Hunters may want sloping, wooded land whereas horse enthusiasts prefer green, level acreage,” says Cindy. Specifying your intended land use will also guide decisions such as the amount of acreage and location, and can help the Realtor prepare you with pertinent zoning regulations.

It’s imperative to familiarize yourself with current local zoning regulations, which, according to Cindy, are becoming stricter regarding livestock, especially horses. She recently worked with sellers of a horse property who had had their horses on the property for years. “Unfortunately, zoning changed a few years ago and required 2.5 acres for the first horse and one acre for each additional horse. Since their property was relatively small, they could only keep one horse even though they had a multi-stall property,” Cindy says.

Check back tomorrow for Tip #2!

Article written by Jean Paffenback and republished from MidAtlantic Farm Credit's Farm Credit Leader Magazine.

Good Records are Key

If you think you just need to keep your records for tax purposes, you could be missing profit opportunities. If you are not keeping detailed records, there are plenty of resources to help you get started including your Farm Credit account executive.

Whenever the topic of records comes to mind, everyone immediately thinks of financial records or the records needed to prepare tax returns. While certainly important, they are not the only records needed for a farm operator to assure himself of maximum profits. What records are needed? Obviously, it starts with financial records, and includes production records, capital asset records, environmental and health records and personnel records.

Financial Records. The most basic of all records are those needed to prepare a business’ annual income tax return. For far too many businesses, this is both the beginning and end of records. Big mistake! Financial records should go far beyond what is needed for the preparation of taxes. For example, tax returns require only the dollar amount of sale, while good financial records will record individual sales, the detail of the sales and organize it all in a way that makes possible management reports based on those records possible. While the sale matters, so does pricing, promptness of payment and shrinkage.

Production Records. Good production records go far beyond corn yields or milk per cow. The best of them integrate the farm’s financial records to allow the operator to closely follow the true profits of a given enterprise. A dairy cow is a great example of this. Suppose the farmer has two cows, one produces 20,000 pounds of milk per year and the other 28,000 pounds. If this is the extent of records, the more valuable cow would seem to be obvious. But consider that the 20,000-pound cow calves every 12 months, while the 28,000-pound cow calves every 18 months. In a three-year period, the 20,000-pound cow produces 60,000 pounds of milk and three calves, while the 28,000-pound cow produces 56,000 pounds of milk and two calves. Without the records, you wouldn’t know which cow is more profitable.

Capital Asset Records. When did you buy that piece of equipment and for how much? These are important considerations, now that it is not uncommon for single pieces of equipment to cost over $250,000. Further, what does it cost to operate the piece? Good capital asset records will be well organized and work hand-in-hand with the depreciation schedule of the business.

Environmental and Health Records. Environmental and health records have been increasing in importance for quite a while and this trend will continue. What did you do with your manure? What spray did you use, where was it applied and by whom? What was given to your animals, when and by whom? An error here could cost you the farm!

Personnel Records. Employee’s pay records are critically important: if everything is not done correctly and records are not properly kept, the farmer will experience much distress. Simple things, like a file for each employee that is maintained for years after the employee departs, must be standard procedure. This file must contain authorizations for any withholdings, as well as personal information such as address, marital status and social security number. Also important are job applications, evaluations and time-off records; to say nothing of time cards and pay rates. It wasn’t that long ago that a farmer could be profitable and secure if he properly tilled the soil, planted and harvested on time. While still true today, it is now also important that records of many types be topnotch. It is for this reason MSC Business Services offers accountants that specialize in ag accounting, lease software specifically designed for farmers, offers a Payroll Service for farmers and can perform consultations in all areas of concern to today’s farmer.

Article complements of Mike Evanish, MSC Business Services

There's more to a loan than just the rate!

Just about every day of the week, we get calls that go something like this:

Customer: I just got a better rate at the bank than what you offered me on my farm loan.

Us: What fees and costs do you have to pay?

Customer: I didn’t ask.

Us: Please ask them what the fees and closing costs are, then we can compare the two deals.

This customer—like a lot of customers—just assumed that the rate was the only item to consider when shopping around for a loan. Actually, there are many things to consider in choosing a lender and some of these may be even more important than the loan rate.

For example: if a lender has a rate that is one percent cheaper than another—but the loan fees and closing costs are one percent of the loan—then you really wouldn’t save much. The total deal must be evaluated to compare one to another. It is important when comparing loan information from competing lenders to take all of these items into consideration.

At MidAtlantic Farm Credit we offer competitive rates, costs and fees. We strive to give above average service—as we want satisfied customers. But we don’t just stop there. As a cooperative lender, MAFC has returned millions of dollars to our borrowers through patronage refunds!

If you didn't already know, we just distributed over $26.5 million to our borrowers in April. The lawyers won’t let us tell you that you’ll get a guaranteed patronage payment every year. But our history speaks pretty loudly: since 1990, MidAtlantic has declared $371 million in Patronage and has distributed Cash of $249 million!!

If you have loans through other banks, and their not putting their profits in your profits, you might just want to give us a call. Because it pays to do business with Farm Credit.

MidAtlantic Farm Credit Announces Grand Prize Winner

MidAtlantic Farm Credit announced the winner of their annual meeting grand prize, a John Deere Gator. The winner was Leo Duncan of Frederick, MD. (View the YouTube video of the prize presentation.)

Mr. Duncan is a retired athletic director and math teacher who moved back to his family farm in Frederick county about 13 years ago where he now assists his brothers with their beef and hay operations.

When the prize was delivered to his farm, Mr. Duncan said, "I just can’t believe I won. There are all kinds of odd jobs we can use it for around the farm. I know my brothers and I will get a lot of use out of it.”

Mr. Duncan was one of 1,400 attendees at MidAtlanic's stockholder meetings, held earlier this month throughout Pennsylvania, Delaware, Maryland, and Virginia. All meeting attendees were eligible for the prize, which was awarded in a random drawing.

The grand prize, a John Deere Gator XUV 550 Crossover Utility Vehicle is equipped with a powerful V-twin engine and independent four-wheel suspension. The custom artwork was designed by local graphic designer Barbra Colquitt of Colquitt Design in honor of the 95th anniversary of the Farm Credit System.