Happy 96th Birthday, Farm Credit!

Yes, you heard it right – Farm Credit has officially turned the big 9-6!  That’s a whole lot of candles to blow out.  Last week, 96 years ago, on July 17, 1916 President Woodrow Wilson signed the Farm Loan Act.

During the signing ceremony, President Wilson said, “I am very glad to have a modest part in the piece of legislation.  It is high time that something was done to provide additional financial assistance for the farmer. Our existing banking machinery, while helpful to the farmer as to all other citizens, because it has secured and assured safe banking and provided a national currency and credit, has been adapted primarily to the needs of the manufacturer and merchant. Their turnover is rapid, their assets are liquid. There has been a gap. There has been need of an agency, under understanding management, reaching out intimately and to the rural district, and operating on terms suited to the farmers’ needs. The farmer is the servant of the seasons. The gap has now been filled.”

Thanks to President Wilson, those in the photograph above (Senator Duncan Fletcher, Herbert Myrick, and David Lubin) and many others who worked hard on this legislation to make Farm Credit possible.

Happy Birthday, Farm Credit and cheers to many more years of lending support to rural America.

Chip Councell: A “Farmer Who Feeds US”

At a time when adults believe half-truths about the food supply and children don’t know milk comes from a cow, it has never been more important to educate consumers about the practice of farming.

Chip Councell of Cordova, Maryland is the tenth generation of his family to farm, where he grows grain and 20 to 30 various kinds of vegetables on almost 1,300 acres annually.  He is also involved in the Farmers Feed US campaign geared towards educating consumers about the farmers who produce their safe, affordable, and nutritious food.

The Farmers Feed US campaign gives farmers an opportunity to tell their story, and that’s exactly what Chip is doing during his feature video clip. Chip stresses that all farmers need to have an impact on the perceptions of agriculture, whereas, “They can no longer just sit back.  We need to be a better job communicating what we do and why we do it to the public.”

You can read more about Chip’s involvement in the Farmers Feed US campaign on page 6 in our Farm Credit Leader magazine.  Or, to learn more about other farmers in the region or get involved in telling agriculture’s story yourself, visit farmersfeedus.org.

The Good Ol’ Honor System

So it’s that time of year again…when the farmer’s markets are beginning to be full of fresh, local fruits and vegetables like squash, zucchini, strawberries, and watermelon.  It is also the time our neighbors start putting their produce out in a wagon at the end of the driveway for us to exchange for a few dollars in a can. That’s right…the good ol’ honor system is back!

Although the trusting business model certainly isn’t crime-proof, honor boxes remain a point of pride and practicality for many small farmers who would prefer to spend their time tending the crops than manning a roadside cart.

And truthfully, most customers end up leaving more money than they actually owe.  It’s a win-win situation because the farmer makes a larger profit and the customers leave feeling good about themselves.

In the agriculture industry, trust is extremely important.  As farmers, your consumers trust that the food you have produced is of high quality and safe.  So, why not trust your customers to do the right thing and bring back the good ol’ honor system?

So tell us – what are your thoughts or experiences with the honor system?

Loan Officer by Day, Blogger by Night

You may have read the article on the front page of the Delmarva Farmer, but we’re pretty proud that our loan officer, Cara Sylvester was featured.  As a MidAtlantic Farm Credit loan officer, farm wife, and mother it’s hard to believe that she finds time to sit down and blog.

When Cara first began her blog, “…Story Worth Telling,” in 2008, she focused mostly on her life in general, touching on farming here and there.  Recently she has begun focusing on agriculture and has launched “Farm Women Fridays” featuring local farm women and the work they do on and off the farm.

The idea for her featured blogs came from her volunteer work with CommonGround, a corn and soybean check-off funded national initiative aimed at starting conversations and making connections between the women who grow food and the women who buy it.

Her goal is for people to feel like they know her, through her combination of agriculture-related blogs and personal stories. She says she keeps the tone informal and leaves the technical jargon and research statistics to other bloggers.  Cara says, “The more people that read it, the more they will understand the people behind the farms.”

Her goal is to run the “Farm Women Fridays” series through Labor Day, provided she has enough women willing to be featured.  Anyone wishing to suggest someone for the series can comment on her blog site, storyworthtelling.blogspot.com, or write to her Twitter account, @carabecca.

Kudos, Cara!  And we look forward to reading more about local farm women in your blog.

Did You Know the Farm Bill is a Jobs Bill?

Did you know American agriculture supports 16 million American jobs?  This includes jobs in rural and urban areas alike, creating not just farm but also equipment, manufacturing, bio-based manufacturing, food and fiber processing, bio-energy production, retail jobs, and more.

Passing a new farm bill before the current bill expires in September will provide the certainty that farmers just like you, need to continue innovating and producing the world’s safest, healthiest and most abundant food supply.  Along will reducing the current deficit and increasing investment, the farm bill will provide successful job initiatives that strengthen:

• export opportunities for farmers’ global markets
• support for local farmers’ markets and food hubs that connect farmers to schools and other community-based organizations
• training and access to capital for beginning farmers
• help for American veterans to start agriculture businesses
• growth in bio-based manufacturing and bio-energy production
• agriculture research, and
• rural development

We love being involved in an industry that is working hard to provide jobs critical for an economic recovery. (Go, agriculture!) And it’s great to know that the farm bill is truly a “jobs bill.”

So, tell us…do you work in the agriculture industry? What job initiatives do you think are important to include in the 2012 Farm Bill?

3 Ways Farmers Can Participate in the Farm-to-Food Bank Program

We all know how important (and delicious) local food, fresh from the farm is to incorporate in our diets.  But we also know that it can tend to be viewed as a luxury food in terms of affordability.  Well, the Maryland Food Bank is helping to break that barrier by implementing the Farm-to-Food Bank Program throughout the state.

The program includes a network of farms and cooperatives who have pledged to donate fresh fruits and vegetables to the food bank on a regular basis.  Farmers can participate by:

• donating excess crops
• allowing minimum-custody offenders to conduct final sweeps of fields in cooperation with the Maryland State Department of Corrections, or
• contracting to grow most-needed fruits and vegetables on a portion of land set aside specifically for the food bank

Farms may deliver produce to the Maryland Food Bank or arrange for weekly, bi-weekly, or monthly pick-ups.  Then, the food bank will immediately either prepare the fruits and vegetables for meals or reconstitute them into healthy frozen meals for use at a later time.

The farmers’ donations will ensure a steady supply of nutritious food to individuals and families striving to overcome hunger.  We think this is a great partnership of the food bank and local farmers to continue to feed our local communities.  Great work, Maryland Farm Bank!  For a complete list of participating farms and cooperatives, or the join the effort yourself, visit www.mdfoodbank.org.

Landis Valley Museum: a history book comes to life

When you take a stroll through Landis Valley Museum, you are delightfully overwhelmed with the rich history of Pennsylvania German heritage and agriculture.  Deep in the heart of Lancaster County, brothers, Henry and George Landis founded the museum in 1925 to ensure that future generations would be able to see and remember how farmers used to operate.

The 100 acre property is home to 16 historic buildings and thousands of artifacts that contribute to the 18^th and 19^th century atmosphere.  The museum’s curator, Bruce Bomberger, maintains the artifacts and oversees the 70,000 visitors each year.  Bruce says he enjoys sharing the stories behind the artifacts with people to help bring their visit to life.

You may have also seen Landis Valley Museum on television when they were was featured during the fourth season of America’s Heartland.  To read more about Pennsylvania’s “best kept secret”, check out page 8 in our Farm Credit Leader magazine.

They’ve worked at Farm Credit for 215 years!

Well, total that is…that’s right, our employees celebrating their service anniversaries in the month of June have worked a total of 215 years for Farm Credit!  We take pride in the fact that our employees choose to spend the majority of (or all for some) their careers with our business.  We believe it really shows how much they love their job and serving customers, just like you!

So here’s a big congratulations to those employees celebrating service anniversaries in June:

35 years – Jim Aird, MidMD Regional SVP (Frederick)

30 years – Dave Clark, Loan Officer (Denton)

30 years – Sandy Stahl, Loan Specialist (Shoemakersville)

30 years – David Stutzman, Loan Officer (Shoemakersville)

25 years – Marty Desmond, Area Lending Manager (Dover)

20 years – Kelli Wilson, Loan Officer (Frederick)

15 years – Maggie Johnson, Loan Specialist (Dover)

10 years – Rebecca Bowmaster, Credit Analyst (Lancaster)

10 years – Mark Schnebly, Credit Manager (Hagerstown)

10 years – Andrew Terrell, Loan Officer (Lancaster)

Thank you for your continued service to Farm Credit.  We look forward to you adding many more years with us to the 215 you already have!

If you are looking for a career change, check out our current job openings.

Go Ahead, Give Yourself Credit!

You are trying to buy a car, a house, or even a farm and the lender has you fill out a credit application to help calculate your credit score.  You know you have one, but like most others, you are still confused over what it is, why it exists, who controls it, and how you can affect it.

 

Over the last decade, consumer and commercial lending decisions have relied heavily on the confusing variable known as a credit score.  Here’s what it is – a numerical value representing your likelihood of paying the loan back as agreed.

Here are five factors that are considered in your credit score and their approximate weight:

Payment history (35%)

• Amounts owed and the amount of credit limits utilized (30%)
• The length of your credit history (15%)
• The types of credit you are utilizing (10%)
• Amount of new credit, and changes to your credit report (10%) 

It's important to know that the higher your credit score, the better.  So how can you improve your score? Here are a few tips: 

• Pay your bills on time, every time
• Don’t use every dollar of available credit on your line or card
• Limit the number of new accounts and credit inquiries
• Credit history length is measured by the age of your oldest card (so keep that one!)
• Be patient – it takes time

Now that you have a better understanding of what makes up your credit score and how to continuously improve it…go ahead and give yourself some credit!

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

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.

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.