Northwest FCS Yields - Armed to Farm - Fall 2013

Fall 2013

FEATURE STORY > 5

Ryan Lankford joined the Army Reserve as a high school senior and spent eight years in the military before returning to farm with his dad Jerry on the Ft. Belknap Reservation. Ryan is using his military experience and college education to farm some 10,000 acres with the support of Northwest FCS.

Farmer Veteran Coalition > 9

New RateWise program for young, beginning

producers > 11

Protect your security > 12

yiel

dsWho we are: Northwest Farm Credit Services is a

customer-owned, financial services cooperative, providing

$11 billion in credit, crop insurance, and related services to

farmers, ranchers, agribusinesses, commercial fishermen,

forest products producers, equipment dealers, chemical

suppliers, part-time farmers, and country homeowners.

Board of DirectorsKaren Schott, Chair, Broadview, MT

Dave Hedlin, Vice Chair, Mount Vernon, WA

Rick Barnes, Callahan, CA

Christy Burmeister-Smith , Newman Lake, WA

Drew Eggers, Meridian, ID

Jim Farmer, Nyssa, OR

Mark Gehring, Salem, OR

John Helle, Dillon, MT

Herb Karst, Billings, MT

Bruce Nelson, Spokane, WA

Dave Nisbet, Bay Center, WA

Kevin Riel, Yakima, WA

Julie Shiflett, Spokane, WA

Shawn Walters, Newdale, ID

About YieldsYields is produced for stockholders of Northwest FCS,

an Agricultural Credit Association. Comments and story

ideas can be sent to the Marketing Department, c/o

Northwest FCS, P.O. Box 2515, Spokane, WA 99220-2515.

website: northwestfcs.com

Northwest Farm Credit Services is an equal opportunity employer and does not discriminate on the basis of race, color, religion, sex, national origin, marital status, age, disability, disabled veteran, Vietnam era or other eligible veteran status.

All of us in agriculture share a responsibility to launch the next generation of promising young producers.

Many grew up in agriculture as the sons and daughters of Northwest FCS customers. Others are entering

agriculture for the first time. Helping these young, beginning producers start their own businesses is an

integral part of the cooperative mission at Northwest FCS.

Returning service members from Iraq and Afghanistan have become the latest group of veterans in need of

employment and who, by some measures, may be the most likely young people to enter into agriculture and

other rural-based businesses. It is estimated that 45 percent of veterans leaving military service come from,

and will return to, rural America.

This year we are reaching out to help active-duty service members and Gulf-War Era II veterans get started

in agriculture through our nationally-recognized AgVision program. The AgVision program is designed to

help young, beginning and small producers who may not meet our regular underwriting standards. We offer

educational opportunities to help the next generation improve and refine their financial and management skills.

I am continually inspired by stories from customers and employees who are reaching out to support our

returning service members. Established producers, many who served in the military themselves, are mentoring

young veterans who are interested in agriculture. Northwest FCS employees are answering the call by

donating their time, talents and financial resources to support a number of veteran projects.

Our military veterans embody the values that stand at the heart of rural America: hard work, a love for country

and a sense of duty to give back. For these returning veterans, agriculture provides a tremendous opportunity

to continue serving our country – ensuring that our food supply is abundant and secure, our natural resources

are protected and U.S. agriculture continues to lead the world.

Please join me in thanking all our military veterans for their service.

Serving those who served

yields Fall 2013 | 2

Phil DiPofi, President and CEO

3 | Nor thwest Farm Credit Ser vices

Family Business Succession Planning Seminar

Jan. 30 – Feb. 1, 2014 Coeur d’Alene, Idaho

Overview

The Family Business Succession Seminar is an interactive program featuring two of the nation’s top family business experts. The strategies and proven processes covered in the seminar help families transition ownership and management from one generation to the next. Northwest FCS recommends this seminar for all family members impacted by management succession and asset transfer to ensure all are informed and prepared for the process.

Subjects Covered and Key Takeaways

• Business and Family – Learn to recognize and balance individual, family and business needs

• Financial Implications – Understand the financial requirements and potential pitfalls surrounding succession

• Business Assessment – Identify your family business strengths, challenges and philosophies

• Communication – Review best practices in family communications

• Legal Issues – Learn the legal considerations and best practices for succession and estate plans

• Buy/Sell Agreements – Identify options for funding and structuring buy/sell agreements

• Road Map for Success – Develop practical next steps in building succession plans

Executive Producers Summit:

Strategic Planning for Peak Performance

February 5-7, 2014 Spokane, Washington

Overview

The Executive Producers Summit provides insights and perspectives on managing business in a dynamic, peer-oriented environment. Participants’ interests and questions drive the Summit’s roundtable discussions and actionable takeaway lessons from nationally recognized speakers and BMC facilitators. This year’s Summit will feature:

Strategic Planning

Success in today’s volatile and highly competitive agricultural markets takes more than operational excellence. Long-term success in business requires a clearly defined plan that aligns owners and employees with a shared vision for the future. The strategic planning process does not need to be complex, but it should be comprehensive to make the most of your human, financial and natural resources. Through hands-on learning and application, you will leave the Summit with tools, knowledge and processes to complete a strategic plan in your business.

Subjects Covered and Key Takeaways

• Exclusive Speakers – Learn from national-level speakers on topics affecting agriculture today

• Strategic Planning – Learn how to build a strategic plan for your business

• Agriculture Trends – Stay ahead of the curve with insights from Dr. Dave Kohl

• Economic Trends – Gain insight on economic trends and forecasts from Dr. Ed Seifried

• Peer Applications – Identify management challenges and share real-world solutions in roundtable discussions


Ryan Lankford is a smart young man with

big plans. He joined the Army Reserve as a

high school senior and spent eight years in

the military, two years active duty, to pay

for his college education. He earned his

engineering degree from Montana State

University. Coming back to farm with his

dad wasn’t necessarily the plan. But farming

is in Ryan’s blood. He’s an enrolled member

of the Gros Ventre Tribe, believed to have

lived in the Great Lakes region cultivating

maize 3,000 years ago. Today Ryan is using

his military experience, college education,

and wise advice from mentors to farm some

10,000 acres and expanding, with the proud

support of Northwest FCS.

Armed to FarmVeteran returns to the field

Ryan is a second generation farmer. In 1978 his dad Jerry

and Uncle Tom broke more than 10,000 acres of virgin

ground on the Ft. Belknap Reservation. Ryan’s mom

Bonnie worked off the farm to support the family. Those

were lean, tough years. The Indian Financing Act with

federal guaranties and loan insurance for Indian-owned

businesses had just passed in 1974. But still no banks in

Malta, Mont. would loan money to farm on the reservation.

Undaunted, the Lankfords planted their first crop with

back-breaking labor and start-up money borrowed from

a friend, “Jiggs” Kirkaldie. A two-year drought wiped them

out in 1987.

“I wouldn’t be here without my dad’s story,” says Ryan.

“When I was six years old we went bankrupt. My parents

had to sell everything, including the house. But, my dad

had the foresight to seed a crop before the sale so we had

something to borrow against. A friend bought dad’s tractor

and gave it back to him. Our babysitter sold mom a truck

for a sewing machine and $300. They started over again.

And look how far they’ve come. I wouldn’t be farming

today if it wasn’t for my dad. He did what he had to do to

make it here. I get to do what I want to do.”

Early adaptors

The Lankfords have nearly doubled their acreage in six

years since Ryan and wife Lyndsey returned to raise their

family on the farm. Like his dad, Ryan is an early adaptor

of technology. Jerry started no-till farming with one of

the first air seeders in 1996. He says it revolutionized

the operation. Today, Ryan is working to synchronize all

their equipment to use one GPS platform. That’s where

his military training comes in. Every machine and every

system should be uniform. If there’s a problem, he can

easily talk someone through it by radio.

Managing people

In the military, Ryan volunteered for every school of

training available. He was quickly promoted to E6 Staff

Sergeant, the youngest in his battalion, before being

recruited as an instructor. Ryan trained soldiers to build

military occupational skills – handling ammunitions,

demolitions, rifles and urban combat.

“The military taught me how to manage people,” says

Ryan. “I learned how to instruct a team. It seems I’m always

training someone on the farm. I learned how decisions are

made with different rank structures. When you’re talking to

someone in the field he’s probably not the person making

the final decision. It’s the guy behind the desk. You need

to communicate effectively with both. There’s a lot of

money on the line when you’re farming and you don’t want

someone on the back end holding you up. You have to know

how to please the private and get the general to say yes.”

In his military unit, Ryan served with men twice his age.

He learned how to compensate for his youth by “knowing

the facts and talking over people sometimes” when he

needed to. But the alpha male role doesn’t really have

a place on the farm, he says. Everyone needs to work

together. Equipment will break. People will make mistakes.

And getting angry doesn’t help. It only makes you more

vulnerable to mistakes.

Documentation and follow through

Ryan credits college for teaching him the importance of

documentation. He journals constantly, writing down

everything he does. Every critical conversation. Every

situation and observation. Daily. Ryan has a paper trail

for everything. The discipline has saved the Lankfords

thousands of dollars.


Jerry and Bonnie Lankford are first generation farmers on the reservation

“We lost 3,000 acres in a hailstorm this year,” says Ryan.

“Plus, we had a neighbor accidentally spray 200 acres,

which confused the situation with a non-insurable loss.

Last year we had a preventative plant claim and lost

300 acres to winter kill. Out of the blue, I got a letter

questioning our insurance coverage. I went back to my

journals. Whenever I talk to someone I always follow up

with a memo to them, documenting our conversation.

There was no argument. Our insurance agent went to bat

for us and everything was resolved quickly.”

Ryan’s dad still loves to tease him about the day a

representative from the Montana Department of Ag came

out to verify the spray damage. Ryan wasn’t there. But, he’d

given all the paperwork to Jerry. “The woman started going

through all of Ryan’s files,” he says. “She kept saying over

and over again, ‘I’ve never seen anything like this!’ Then she

asked me, ‘Is your son married?’”

Managing risk

When it comes to the numbers, Ryan knows every cost to

the acre. All 10,000 acres. He meticulously calculates his

breakeven point and looks for return on investment. The

Lankfords use plenty of crop insurance to protect against

weather risk or a drop in market prices.

“In 2008, my first year farming, hail took out more than

half my acres,” explains Ryan. “That’s why I’m so keyed in

on cost per acre and managing risk. We don’t have the

luxury of being fourth generation guys with our land paid

off. We have so many leases it can bury you in paperwork.

With an operation our size it’s easy to drop a million dollars

into machinery. It sounds like a lot of money. And it is a

lot of money. But if we can make the numbers work over

10,000 acres for half the cost of hiring custom work, the

investment makes sense.”


Northwest FCS Relationship Manager Colter Brown (left) and Ryan inspect damage from the recent hail storm


Using wise mentors

Ryan grew up watching his dad mentor young men

who came looking for work on the farm. Many lived on

the reservation and had little to no field experience.

But there was always rocks to pick or fences to put up.

Jerry has a master’s degree in guidance counseling from

the University of Montana. Over the years he’s made

it a personal mission to train men for hard work and

responsibility. Ryan says

they’ve probably had more

than 100 people work for

them over the years. Some

for a day. Some for a year

or more. Jerry talks proudly

about the young people who

went on to join the military,

attend school or start

promising careers in

the trades.

Maybe that’s why Ryan stresses how important mentors

are to the next generation in agriculture. “Find four or five

producers you can rely on for straight-forward answers,”

he says. “They’re out there. You just have to find them. I’ve

been blessed by my dad and a group of guys, like Brian

Eggebrecht, who are willing to share what they’ve done

– what worked and what didn’t – whether it’s buying a

piece of equipment or crop insurance. I’ve asked all those

questions. I figure nothing is really new. Somebody has

tried it. You just can’t be afraid to ask and be willing to

listen. Not know it all.”

Brian Eggebrecht is a well-respected, seasoned producer

that Ryan goes to for advice. Initially, Ryan had questions

about raising alternative crops like peas and lentils,

something the Eggebrechts have done in north central

Montana for 15 years. The two have talked about

managing risk with crop insurance and appropriate levels

for coverage.

“When you try something new it’s always a learning experi-

ence,” says Brian. “Ryan doesn’t have to make the same

beginning mistakes we did in

those early years of farming.

He’s going to be so much

further ahead than we were

at his age. In today’s environ-

ment you have to work hard

and smart. More established

operations can get by with

a little more risk than these

young people just starting

out. Ryan gets it. To work

smart you need a network of advisors, including a lender

who has confidence in you and your operation.”

Securing financial support

Financing land on the reservation can be challenging,

particularly from a collateral standpoint. A person can have

a deed for the land but the property remains in trust status

with the Bureau of Indian Affairs. That’s why the Lankfords

have leased almost all their ground. They are blessed as

enrolled members with a supportive Tribal Council, and

they have first-right-of-refusal on the leases they pick up.

But in 2012, Ryan had his eye on a piece of private

property to buy – about 3,000 acres he knew would be

coming out of CRP soon. With the purchase he could

expand his land base and grain storage. Could he find the

financing to do it?

Originally, Ryan was going to do a contract-for-deed

to buy the land, but the deal fell through. While he was

working to get the down payment, the price went up. Ryan

had some big decisions to make.

Ryan and wife Lyndsey review the numbers

yields Spring 2013 | 8

“I went from being comfortable

to … just being close enough to

uncomfortable,” Ryan says. That’s why

I appreciate the people at Northwest

Farm Credit. They give you the

opportunity to grow, but they don’t

want you to get in too deep. I had a

dollar range in mind for the down

payment. They showed me how much

to put down so I wouldn’t stretch

myself too thin. It was nice to have

that guidance. I knew what I wanted

and they knew what I needed to help

me manage the risk.”

Farming career for military

veterans

It is estimated that 45 percent of

veterans leaving military service come

from, and will return to, rural America.

Among these returning veterans are

the next generation of farmers and

agribusiness leaders. Northwest Farm

Credit Services’ AgVision program

is helping young military veterans,

like Ryan, realize their futures in

agriculture.

“When people get out of the service

they’re looking for different careers,”

says Ryan. “Sometimes it’s tough to

transfer your military skills into the

civilian world. You can have all the

hopes and aspirations in the world but

if you don’t have access to money it

will be tough. My dad was just amazed

when I got my loan at Northwest Farm

Credit. It’s pretty awesome to have

that kind of support to get started and

be successful.”

Northwest FCS 2013

Veteran Support

Activities

Jan. Featured a young, military veteran farming couple in a video shown at Northwest FCS’ Annual Meeting to announce reaching out to veterans with our AgVision program.

Feb. Represented Northwest FCS on a panel for veterans coming back into agriculture at the national Farm Credit Council annual meeting.

Mar. Northwest FCS employees in Spokane donated 800 pounds of items and nearly $3,000 for Give2theTroops. Northwest FCS donated $1,000.

April Featured a veteran-focused advertisement in the Guardian, the Idaho National Guard magazine.

May Contributed to University of Idaho Operation Education, the nation’s leading scholarship and assistance program for military veterans with disabilities.

June Contributed to the Wounded Warriors project via a local veteran support organization in Burlington, Wash.

July Donated $5,000 to Operation Spokane Heroes that helps families of deployed service personnel from the National Guard, Reserves and Active Duty.

July Partnered with CoBank to support three ag-related service/leadership fellowships for veterans in The Mission Continues program.

Sept. Northwest FCS’ Human Resources staff attended Hiring Our Heroes Career Fair in Spokane.

Sept. During United Way week in Spokane, Northwest FCS hosted Shepherds for Lost Sheep that provides service dogs for veterans.

Sept. Northwest FCS’ AgVision group sponsored a team to participate in Seattle’s “Tough Mudder” race. T-shirts were created saying “AgVision – serving those who served.”


Ryan and Colter discuss the land purchased with financing from Northwest FCS’ AgVision program

The next generation of agriculture: Ryan and Lyndseywith daughters Kendle and Caitlyn and a son on the way in January.


Farmer Veteran CoalitionNorthwest FCS is proud to partner with the Farmer Veteran Coalition, an organization aimed at mobilizing

veterans to enter agriculture. Our vision is to help find farm ownership or ag employment opportunities for

members of the military transitioning into the civilian workforce. We encourage your support.

“When I began farming in

1970, two million farmers were

feeding 200 million people.

Now 960,000 farmers are feed-

ing 310 million mouths. For

a century our numbers have

shrunk and our age has gone

up. Our nation needs new

farmers to feed our people,

protect our land, rebuild our

economy, bring back our rural

communities, keep us healthy,

and make our nation secure.

Who better to heed that call

than our veterans?

“Veterans make excellent farmers. They are not afraid of difficult tasks, they stand up when they are knocked down, they

understand the need to be acutely aware of everything around them, and most of all, they are driven by doing what is

right for their country.

“Support for healthy eating, diversity in our diet and food that travels fewer miles from the field to the plate has made

farming on smaller acreage a viable option. It has also allowed for the return of high value crops to communities that

have long abandoned them.

“Not all agriculture means self-employment. Our larg-

est farms offer a wide range of well-paying jobs. My own

profession, farm management, gave me the satisfaction

of farming on a scale that I never could have achieved on

my own. I was able to focus on the part of the job that I

loved - being out in the field growing the crop – while my

colleagues handled the sales and business.

“Farming, like the military, is one of our last great meritoc-

racies: one is judged based on actions, not words. We at

the Farmer Veteran Coalition believe in the opportunities

that American agriculture has to offer. We each have the

opportunity and ability to produce good food and to cre-

ate a positive influence on our society.”

Ways to show your support:

• Employ young veterans

• Become a mentor to a young veteran farmer

• Spread the word about veterans in agriculture

• Donate equipment, seeds, feed or stock

• Offer discounts to Farmer Veterans

• Share educational resources

• Donate to the FVC Fellowship Fund to help veterans beginning a career in food and farming and current Farmer Veterans with business expansion.

For more information on these FVC programs

visit: farmvetco.org

Michael O’Gorman, Farmer Veteran Coalition Founder


The Mission Continues with support from Northwest FCSand CoBankAt Northwest FCS, we continue to look for ways to support our military veterans. We were delighted to

find The Mission Continues program that helps veterans successfully transition to post-military careers by

reconnecting to their communities through volunteerism. What a great opportunity to help veterans who

have a passion for agriculture learn new skills and take the next step in their careers.

Together with CoBank, we are

supporting service and leadership

fellowships for three, post-9/11

veterans. These veterans will serve up to

20 hours a week for six months. Justin

Blotsky is serving his Mission Continues

fellowship at Growing Veterans, a

nonprofit organic farm in Lynden, Wash.

that promotes sustainable agriculture

and local farming. As part of his

fellowship, Justin is growing, harvesting

and distributing locally grown food.

He is also coordinating with partner

farms to provide more opportunities

for veterans to contribute to local food

production.

“The founder of Growing Veterans, Chris Brown, realized there was a need to help veterans develop job skills outside

the military,” says Justin. “Today we have veterans from just about every branch of the military volunteering on the farm.

Lately I’ve been facilitating college students and young people to volunteer for work parties at Growing Veterans. It’s so

rewarding to see these young people get involved in the farm and work alongside our veterans.”

Justin, 32, is earning his environmental economics degree from Western Washington University

and The Mission Continues fellowship is providing him the opportunity to develop skills to start

his own farm someday. “I would like to help establish another farm, maybe near the Seattle area,”

says Justin. “There is such a need to get veterans together to learn new skills, build relationships

and communities. That’s something I’m really excited and passionate about.”

Justin Blotsky


Earning RateWise Credits – Participants can accumulate RateWise Credits for six years beginning on the date of their program registration. Credits will also be accepted online for eligible programs attended in the 12 most recent months prior to registering for the RateWise program.

Interest Rate Reductions – Rate reductions increase with the number of credits earned.

10 credits: 0.25 percent interest rate reduction for three years



Certifying RateWise Credits – After registering for the RateWise program, participants can certify workshops and seminars completed by submitting a copy of the program’s agenda online.

Additional Benefits – Book your first loan using RateWise credits and receive all the benefits of our nationally recognized AgVision® program available to young, beginning, and small producers including an invitation to the Young and Beginning Producers Conference.

Northwest Farm Credit Services is dedicated to helping the next generation

of producers learn and grow. Our RateWise program rewards young, beginning

and small producers for continuing their management education with interest

rate reductions on new loans.

EligibilityRateWise is part of our nationally recognized AgVision program available to young, beginning and small producers with at least one of the following characteristics:

• 35 years of age or younger.

• 10 years or less agriculture experience.

• Producer with annual gross farm production of less than $250,000.

Program FeaturesLearn and Earn – Participate in educational programs, enhance

your management skills, make your operation more successful,

and accumulate RateWise credits to qualify for interest rate

reductions on your next loan or renewed operating loan.

RateWise Registration – Register online at northwestfcs.com/

RateWise to begin accumulating your RateWise credits today.

Eligible Education Programs – Programs eligible for RateWise

credits include: 1) programs hosted by Northwest FCS’

Business Management Center and Knowledge Center; 2)

programs hosted by universities, industry groups and the Farm

Service Agency; 3) programs hosted by other resources to

improve producers’ management and production skills.

RateWise™ Program

*Participation in and/or completion of degreed programs are not eligible

Northwest FCS Programs

1 credit regardless of duration

(maximum of 5 total credits earned)

½ day = 2 credits

1 day = 4 credits

1+ days = 6 credits

½ day = 1 credit

1 day = 2 credits

1+ days = 3 credits

University, Industry and Farm Service Agency Programs

OtherPrograms

™

Contact your local Northwest FCS officefor more information

-OR-Register for the RateWise™ program today at

northwestfcs.com/RateWise


Protect your securityCould someone access your money without

your knowledge? The risks are real. Northwest

FCS has recently encountered several instances

where scammers attempted to initiate fraudulent

transactions, either over the phone or through

email. Thanks to the knowledge and training of

our staff these attacks were stopped before losses

were incurred.

Do you always know who is on the other end of the phone line or who really sent that email, text or letter? To access funds or sensitive information, scammers will use a variety of methods to target both a company and its customers. For example, they might target customers by posing as a legitimate person or business. We have encountered this in the form of Internet payday loan sites posing as Northwest FCS as well as fraudulent letters from companies claiming to be working on our behalf.

Scammers will also target companies directly. They might create a fake email address using personal information that, at first glance, looks like a legitimate customer. Or they may call an employee, claiming to be a customer in urgent need of a wire transfer. In both cases, internal security measures and sound, human judgment are key to avoiding scams.

Each year, all Northwest FCS employees undergo comprehensive security awareness training to identify potential security threats and take appropriate action. Our employees understand that being proactive and acting quickly will help protect customer and company information.

Northwest FCS is committed to advancing security at all levels, and you may have noticed a few additional verification steps recently when contacting us. For example, you may be asked additional authentication questions, which are designed to ensure we are speaking directly to you.

Northwest FCS has taken steps to make sure your information is secure. However, to have an effective security net, our

customers need to be proactive as well. Be aware of who you are talking to – are they really a Northwest FCS employee? Hang up and call your Northwest FCS contact directly if you are not sure. Be aware of your personal Internet security: Is your password secure and is your antivirus software up to date? Be wary of email, and don’t open or click on links until you are sure the message is legitimate.

While we can’t eliminate threats to security entirely, we can use our expertise, judgment and technology to stay ahead of the curve. Know that the extra security measures we take together, which may feel inconvenient sometimes, are designed with your security and livelihood in mind. Northwest FCS is dedicated to keeping our customers’ funds and information safe.

5 rules of computer security

• Keep software up to date

• Use antivirus software and be sure to update frequently

• Set up a firewall

• Use secure passwords

• Set up wireless encryption

Tips to creating a secure password

• Use unique passwords for your financial software and online banking

• Avoid reusing passwords that you use for social media sites. Many websites, including social media sites, have weak security. If your password is hacked at one of these, any online account for which you use the same password will be compromised.

• Use at least eight letters and numeric characters. Hacking software can guess a six-character password with just lowercase letters in less than10 minutes.

• Mix uppercase, lowercase, numeric digits and special characters whenever allowed.

• Test your passwords at howsecureismypassword.net.For a real eye opener, try variations of your password.

Remember:

Be cautious,

and if something

looks suspicious,

call your local

branch to confirm

its safety.

Business Management CenterEngaging Seminars and WorkshopsSeeking, interpreting and sharing knowledge about

the industries we serve is a core value of Northwest

FCS. We’re firmly committed to helping business

owners and their families to be successful long term.

That’s why we’ve invested in educational programs

and business facilitation to help you improve your

management skills and help transfer the leadership

and management of your business to the next

generation.

We have a strong history working with family

businesses in our Business Management Center.

Knowledgeable and experienced facilitators have

worked with hundreds of family operations and

boards of directors, helping them to improve

their management practices, communication and

strategic planning skills. Over the years customers

have provided tremendous feedback. They say these

educational programs and one-on-one facilitation

have made significant and lasting differences in their

businesses.

We hope you will take advantage of the BMC

programs offered in 2013-2014. The schedule changes

every year and we do our best to provide programs in

a variety of locations. During these sessions you will

gain insights to better manage your business. Plus,

you’ll have the opportunity to work with some of the

most successful producers we have the privilege of

working with every day .

Awarding Nearly $90,000 in College Scholarships ApplicationDeadline March 1stSons or daughters of current customers, or customers’

employees, are eligible to receive a college scholarship from

Northwest FCS. Each year, 55 scholarships (eight high school

and three college) are awarded to students throughout

Idaho, Montana, Oregon, Washington, and Alaska. High

school students who plan to attend a higher education

institution within the next year are eligible for a $1,500

scholarship. Eight winners are selected from each state. In

addition, three $1,500 scholarships per state are awarded to

college sophomores, juniors and seniors.

Scholarship winners will be selected based on scholastic

performance, leadership and activities, and a written essay.

Interested students need to submit an application by

March 1. Applications can be found at northwestfcs.com.

Winners are announced in early May.

Recent Scholarship Winners

Trent PearsonConrad, Mont.

Braeden Cornelius Veneta, Ore.

Alana Peters Prosser, Wash.



2013-2014 BMC CalendarBasic Financial Workshops

Level I Level II

Financial Statements Financial Analysis Location

December 3, 2013 December 4, 2013 Idaho Falls, Idaho

December 10, 2013 December 11, 2013 Spokane, Washington*

December 12, 2013 December 13, 2013 Benton City, Washington

*Spokane Financial Workshops open to non-customers

Advanced Financial Workshops

Level III Level IV

Growth and Capital Profits, Cash and Risk Location

January 7, 2014 January 8, 2014 Spokane, Washington*

January 9, 2014 January 10, 2014 Benton City, Washington

January 14, 2014 January 15, 2014 Nampa, Idaho

*Spokane Financial Workshops open to non-customers

Featured Programs

Family Business Succession Seminar

Jan. 30 – Feb. 1, 2014 Coeur d’Alene, Idaho

Young and Beginning Producers Conference February 4-6, 2014 Spokane, Washington

Executive Producers Summit

February 5-7, 2014 Spokane, Washington

Webinars

Topic Expert Date

Strategic Planning Dr. Dave Kohl November 25, 2013

Family Business Succession Rich Thornton December 2, 2013

Economic Outlook (Q4) Dr. Ed Seifried January 17, 2014

Personal Finance Dr. Alex White February 13, 2014

Family Business Basics Dr. Deb Houden February 25, 2014

Find out more about BMC programs and register online: www.northwestfcs.com/register

Questions: [email protected] or call 866.552.9193

Note: BMC financial workshops build on preceding workshops. However, there are no workshop prerequisites.


At the New Century Farmer Conference recently in Des

Moines, Iowa, I had a delightful treat. My day usually

starts with a workout at a hotel on an elliptical machine

while reviewing my notes as a standard operating

procedure. At the end of this particular sweaty workout,

a gentleman with an Australian accent asked me what

the New Century Farmer Conference was all about. I

explained that the FFA, in conjunction with leading

sponsors such as DuPont Pioneer, Farm Credit, Case

IH, and CSX Corporation, sponsors an annual five-day

leadership event for approximately 50 young people

who plan to have careers in production agriculture.

This sparked his interest since he is an Australian

farmer who is part of the prestigious Nuffield Scholar

program for leading agriculturalists in the United

Kingdom, Canada, and Australia. He had participated

in a technology conference in Springfield, IL and

was passing through to play golf in Nebraska before

embarking on a trip to Canada. Many of you who know

me would not be surprised that I proceeded to call a

“Peyton Manning audible” and invited him to speak at

the conference with me regarding the wild world of

global economics.

Facilitation of the conference with a 22-year-old

producer from Down Under gave the high-energy

group of young producers a real-world perspective

on global economics. Toward the conclusion of the

sessions, I invited the Aussie farmer, Richard Heath, to

tag-team with me to present the group with our top

global best management practices. Let’s examine some

of our discussion.

Richard, coming from a precision farming conference,

was keen to share with the group that managing data

and information would be a key to success regardless

of the farm, ranch size or enterprise. In his opinion,

precision farming and data are prominent in the grain

industry, and the livestock sector will see much more

use of it to build efficiency and connect with domestic

and global consumers. In the land Down Under,

electronic chips are embedded in cattle to assist in

more efficient pasture management and use, and they

are used to differentiate a commodity to the global

consumer.

Another best management practice is that individual

producers and industries must be aware of the power

of social media, its impact on the image of agriculture,

and its impact on consumers. He explained that social

media ballooned out of control and nearly shut down

the cattle industry in Australia.

Many of the students thought that Richard and I

spent time preparing for the session, since we both

Global View of Best Management PracticesDr. David KohlProfessor Emeritus, Virginia Tech


agreed that developing an advisory team is one of

the fastest growing best management practices in

global agriculture. He suggested, and I agree, that

advisory teams made up of the lender, accountant,

and nutritionist or agronomist, along with at least two

individuals from outside the industry would result in

increasing business management systems acumen.

He explained that his family had just liquidated part

of their fourth generation farm family business in

Australia. The outside perspective from an advisory

team brought in an objective analysis to a tough,

emotional decision, and basically brought a conclusion

to their major challenge.

Both of us agreed that members of an advisory team

should be compensated. This, in turn, encourages the

business managers and owners to be more accountable

for having productive meetings and outcomes.

Richard said, and again I agree, producers should

strive to be in the top 20 percent of peers in business

and financial benchmarks and ratios for your industry.

He indicated that his family business benefited

from sharing their financial and business operations

information with peers to confirm what they were

doing correctly and identify areas for improvement.

He stated that if you are in the top 20 percent of

your industry you will have a much better chance of

weathering an economic cycle downturn, which we

both agreed appears to be coming.

Modesty in debt was a best management practice

suggested by both of us. However, we were quick to be

challenged by the young producers who are in startup

or expansion modes. Again, both of us responded by

indicating that in the strong profit years, you must hold

back some money in the form of working capital, assets,

or cash for future adversity and to position yourself for

opportunities.

We both emphasized selecting a relationship lender

who understands your industry and business is a

critical best management practice. The lender must

not extend too much credit in the good times, and

even say “no” occasionally! The lender also needs to

demonstrate a brand of consistency by “being there”

during the tough times when dealing with the cyclical

agricultural marketplace.

A young inquiring mind in the audience asked us,

“What is the best investment that I can make?”

Without batting an eye, both of us responded, “Invest

in yourself.” Training and educational development

are practices that previous generations generally

failed to engage in. Time to travel, taking time to step

back, look and listen will be critical for the current and

future generations of agriculturalists.

Finally, we discussed the importance of business

planning and goal setting. Richard will be taking

a new assignment as a professor at the University

of Sydney with the assignment of teaching farm

management and managing the University farm. He

indicated that business and operational planning will

be emphasized in his classroom, but he will also focus

on practical applications.

Wow! A chance meeting in a workout room at a hotel

led to a worldwide educational experience for New

Century Farmers. In my travels it is truly amazing

how much is common among successful agricultural

businesses globally. Calling this presentation

“audible” was an educational touchdown for the

future agricultural leaders, but it was also a great

experience for Richard and me, who are passionate

about farm management, the agriculture industry,

and its exciting future.


Risk Management PlanningIn today’s global agricultural economy, risks to producers, processors, and marketers are expanding and surfacing in many ways – exposing all to more unfavorable circumstances and increasing uncertainty. Developing a risk management plan helps business owners anticipate and mitigate risks, thus reducing their negative impact. Strategic Business PlanningFarm and ranch managers generally spend most of their time making day-to-day operational decisions such as when to seed or harvest, when to sell cows, or whether to purchase new equipment, now or later. While short-term operational planning is important, it doesn’t substitute for long-term planning.

How Lending Decisions Are MadeEvery lending institution has a set of credit standards or guidelines that are used to analyze and approve loans. To help our customers better understand the decision-making process for approving and renewing loans, we commonly refer to these standards as the Five C’s of Credit: Character, Capital, Capacity, Collateral, and Conditions.

Preparing Agricultural Financial StatementsThoroughly understanding your business’ financial performance is critical for success in today’s increasingly competitive agricultural environment.

Financing Agriculture: The Business Borrower-Lender RelationshipOne of the most critical decisions a businessperson makes is choosing a lender.

Land Buying ChecklistBuying, selling, or financing rural properties is often different than properties withincity limits. In this guide, you’ll find helpful planning tips and practical advice for buyingrural land.

Understanding Key Financial Ratios and BenchmarksHow does my business stack up compared to my neighbors? This question is becoming more and more common as the agricultural industry enters the 21st Century.

Business Management PublicationsNorthwest FCS recognizes the vital role of management decisions in the success of an agricultural business, and offers publications discussing various management topics for producers.

To access these Business Management Publications, visit

northwestfcs.com/resources

IDAHORobert Ball HamerCody Bingham JeromeJeff Blanksma, Jr. HammettAdrian Boer JeromeRay Carlson BlackfootConnie Christensen BlackfootBill Clayton WilderCade Crapo St. AnthonyRon Elkin BuhlCarl Ellsworth LeadoreBruce Foster AberdeenDavid Funk HansenLeRoy Funk BurleyBrent Griffin RupertJohn Hepton NampaJackie Hillman DuboisBrian Huettig HazeltonHolly Hull PrestonKen Koompin American FallsBrent Lott Idaho FallsKaren Lustig CottonwoodMarty Lux NezperceDan Mader GeneseeRay Matsuura BlackfootKyle Meyer RathdrumRon Mio FruitlandGreg Moss KetchumKirk Nickerson HoweLisa Patterson HeyburnErick Peterson MoscowDavid Rallison FranklinNate Riggers Nez PerceRoyce Schwenkfelder CambridgeKirt Schwieder Idaho FallsScott Searle ShelleyTodd Simmons TerretonRobert Swainston PrestonRyan Telford RichfieldBernie Teunissen CaldwellDale Thomas GoodingCamellia Thurgood NampaJustin Tindall BruneauRitchey Toevs AberdeenSteven Toone GraceJames Udy American FallsTodd Webb DecloShane Webster Rexburg

73 Fort Hall Avenue, Suite AAmerican Falls, Idaho 83211(208) 226-1340

370 North Meridian Street, Suite ABlackfoot, Idaho 83221(208) 782-3800

1408 Pomerelle Avenue, Suite BBurley, Idaho 83318(208) 678-6650

501 King StreetCottonwood, Idaho 83522(208) 962-2280

2225 West Broadway, Suite AIdaho Falls, Idaho 83402(208) 552-2300

2631 Nez Perce Drive, Suite 201Lewiston, Idaho 83501(208) 799-4800

16034 Equine DriveNampa, Idaho 83687(208) 468-1600

102 North State, Suite 2Preston, Idaho 83263(208) 852-2145

1036 Erikson DriveRexburg, Idaho 83440(208) 656-2100

815 North College RoadTwin Falls, Idaho 83301(208) 732-1000

MONTANALes Arthun WilsallBill Bergin MelstoneAdam Billmayer HogelandBart Bitz Big SandyRyan Bogar VidaKeven Bradley Cut BankSandy Carey BoulderTom Cheetham RedstoneCalvin Danreuther LomaNels DeBruycker ChoteauVicki Eggebrecht MaltaWarren Flynn TownsendConni French MaltaJoe Fretheim ShelbyScott Glasscock AngelaBeth Granger Great FallsGreg Grove MoccasinChad Hansen DillonCraig Henke ChesterCourtney Herzog RapeljeDale Hirsch KinseyCraig Iverson WinnettTim Johnson DuttonAlan Klempel BloomfieldPaul Kronebusch ConradTim Lake PolsonBryan Mussard DillonCorie Mydland JolietTraci Mytty FlorenceKen Olson RicheyTracey Pearce SheridanShawn Rettig RudyardDave Sattoriva HinghamNancy Schlepp RinglingKim Skinner HallCarmie Steffes PlevnaSteve Swank ChinookKurt Swanson ValierDuane Talcott HammondDale Tarum RichlandBob Taylor DentonMark Tombre SavageMiles Torske HardinBrian Tutvedt KalispellLarry Tveit, Jr. FairviewBruce Udelhoven WinifredMike Wallewein ConradSteve Wood Sheridan

Tech Plaza, Building 1, Suite 3003490 Gabel RoadBillings, Montana 59108(406) 651-1670

1001 West OakFarm Credit Building, Suite 200Bozeman, Montana 59772(406) 556-7300

519 South MainConrad, Montana 59425(406) 278-4600

134 East Reeder StreetDillon, Montana 59725(406) 683-1200

501 First Avenue SouthGlasgow, Montana 59230(406) 228-3900

700 River Drive SouthGreat Falls, Montana 59405(406) 268-2200

1705 Highway 2 Northwest, Suite AHavre, Montana 59501(406) 265-7878

120 Wunderlin Street, Suite 6Lewistown, Montana 59457(406) 538-7737

502 South HaynesMiles City, Montana 59301(406) 233-3100

3021 Palmer Street, Suite BMissoula, Montana 59808(406) 532-4900

123 North Central AvenueSidney, Montana 59270(406) 433-3920

OREGONMonet Allen Montague, CAReed Anderson BrownsvilleRoben Arnoldus CoveTim Bare RoseburgGlenn Barrett BonanzaJohn Boyer HainesGreg Brink JosephRon Brown Milton-FreewaterGeorge Bussmann SixesWarren Chamberlain ValeJason Chapman Klamath FallsTim Dahle The DallesDan Dawson RoseburgMike DeWall HarrisburgSusan Doverspike BurnsRod Fessler MadrasTom Fessler Mt. AngelJoe Finegan CorneliusBruce Ford HermistonDennis Harmon Grants PassRon Hjort OaklandMatt Insko LaGrandeKenneth Jensen ValeJeremy Kennel MonmouthAlan Keudell AumsvilleDavid Kunkel PortlandLeland Lage Hood RiverDan C. Lewis GastonSharon Livingston Mt. VernonBill Martin RufusScott McClaran JosephRon Meyer TalentGreg Myers TillamookDavid Neal TangentMary Olson MonmouthLarry Parker HelixAlan Parks Silver LakeAmy Doerfler Phelan AumsvilleVikki Price NyssaJohn Reerslev Junction CityStephen Roth BrothersShannon Rust EchoMarc Staunton MerrillAnna Sullivan HerefordSteve Walker Stanfield

3370 10th Street, Suite BBaker City, Oregon 97814(541) 524-2920

2345 N.W. Amberbrook Drive, Suite 100Beaverton, Oregon 97006(503) 844-7920

650 E. Pine, Suite 106ACentral Point, Oregon 97502(541) 665-6100

2911 Tennyson Avenue, Suite 301Eugene, Oregon 97408(541) 685-6140

300 Klamath Avenue, Suite 200Klamath Falls, Oregon 97601(541) 850-7500

378 West Idaho AvenueOntario, Oregon 97914(541) 823-2660

12 Southwest NyePendleton, Oregon 97801(541) 278-3300

3113 S. Highway 97, Suite 100Redmond, Oregon 97756(541) 504-3500

2222 Northwest Kline StreetRoseburg, Oregon 97471(541) 464-6700

650 Hawthorne Ave. S.E., Suite 210Salem, Oregon 97301(503) 373-3000

3591 Klindt Drive, Suite 110The Dalles, Oregon 97058(541) 298-3400

WASHINGTONDave Allan WapatoJeff Bosma OutlookRuss Byerley TouchetRoger Canfield OlympiaMike Cobb EphrataBill denHoed GrandviewRichard DeRuwe DaytonFrank DeVries LyndenScott Eschbach YakimaPatrick Escure QuincyKevin Filbrun PascoStacy Gilmore PascoAlan Groff WenatcheeLori Hayles PascoJim Kile St. JohnCris Kincaid PullmanJim Klaustermeyer OthelloDave Klaveano PomeroyTristan Klesick StanwoodChris Kontos Walla WallaSteve Krupke ReardanDavid Lange ColfaxJosh Lawrence Royal CityPoppie Mantone BingenDan McKay AlmiraAlan Mesman Mt. VernonJohn Miller ToledoPat Murphy ChehalisChuck Podlich OrondoJeff Raap EllensburgSara Rolfs WenatcheeJason Salvo SeattleDerek Schafer RitzvilleJeff Schilter OlympiaDanielle Scrupps RitzvilleBen Smith SequimJerry Smith Benton CityLori Stonecipher Walla WallaMark Tudor GrandviewJake Wardenaar Royal CityAndy Werkhoven Monroe

265 East George Hopper RoadBurlington, Washington 98233(360) 707-2353

629 South Market BoulevardChehalis, Washington 98532(360) 767-1100

224 North MainColfax, Washington 99111(509) 397-2840

1501 East Yonezawa BoulevardMoses Lake, Washington 98837(509) 764-2700

455 East Hemlock Street, Suite DOthello, Washington 99344(509) 488-2396

9530 Bedford StreetPasco, Washington 99301(509) 542-3720

1223 Sheridan Avenue, Suite AProsser, Washington 99350(509) 786-6400

1900 W. Nickerson Street, Suite 215Seattle, Washington 98119(206) 691-2000

1515 S. Technology Blvd., Suite BSpokane, Washington 99224(509) 340-5600

2735 Allen RoadSunnyside, Washington 98944(509) 836-3080

1 West PineWalla Walla, Washington 99362(509) 525-2400

667 Grant Road, Suite 1East Wenatchee, Washington 98802(509) 665-2160

1360 North 16th AvenueYakima, Washington 98902(509) 225-3200

advisors and locations HeadquartersP.O. Box 2515, 1700 S. Assembly St.Spokane, Washington 99220-2515509.340.5300 | northwestfcs.com

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P.O. Box 2515Spokane, Washington 99220-2515

New address?Please notify your local Northwest FCS office.

Northwest Farm Credit Services proudly supports our veterans as they transition from soldiering to farming. Fact is, 45 percent of veterans come from, and will return to, rural America.

It’s our honor to help veterans continue serving our country – as the next generation of U.S. producers.

northwestfcs.com | 800.743.2125

Northwest FCS customer Dan Mikulecky - Iraq war veteran turned wheat farmer. Thank you for your service.

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