Record dividends for 2012– $45 million
Transcription
Record dividends for 2012– $45 million
Harvest Record dividends for 2012– $45 million Farm Credit Alliance Partners expands outreach 2013 wine industry benchmarking survey launched Valley golf tournament raises funds for scholarships Spring 2013 200 Concourse Blvd. Santa Rosa, CA 95403 800-800-4865 E-mail: [email protected] Internet: www.agloan.com EDITORIAL chief marketing officer Terry Lindley senior vp credit Record cash dividends for 2012 signifies shift in economy, growth of agriculture A s a result of the company’s 2012 performance, the Board of Directors approved a 100 basis point patronage dividend, which resulted in cash dividends paid to member‐borrowers hitting a record $45 million. This is the highest customer dividend paid out in the history of the Association – representing 29% more than the previous year’s dividend of $34.8 million. “This is the second year in a row that we’ve handed back 1% in dividend earn- Bud Bensley ings to our members, and for 2012 this is the largest cash dividend in our history,” editor said President and Chief Executive Officer Ron Carli. “Agriculture has continued Maria Sundeen to be a strong sector in a challenging economy. This year’s growth in loan volume contributor Audrey Lopes-Dermond M ar k eti n g T E A M Dave Armstrong Cathy Barnes Jennifer Bracken Allison Clark Steve Day Mike Flesher Dave Jackson Alex Klein Cydney Liles Cynthia Lutz Rilaina Raffety Greg Reno Gregg Warren CEO Ron Carli and resulting cash dividend payout directly represent our success and the success of agriculture as we move forward.” ume increasing 6.7% overall for the year; the first actual growth in loan volume in more than three years. Earnings for the year totaled $107.3 million, up nearly 16% from 2011 (excluding adjustments for nonrecurring 2011 transactions). Net interest income increased substantially compared to 2011, with growth of nearly 25%. BOARD OF DIRECTORS Frank Stonebarger, Chairman Charlie Talbott, Vice-Chairman Eric Allen Mary Borba Parente James R. Boyd Peter Bulthuis Dennis Cakebread John Caldwell Foy Chapin Jim Cooksey Clinton Eck John Engelland George Fontes Jerold L. Harris Linda Ingo Kirvin Knox Alan List Gregory Ringler David Santos Joe Schoonover Larry M. Solari Thomas Teixeira Dennis Williams “2012 represents the first year as an integrated Association with Farm Credit Services of the Mountain Plains,” said Carli. “Our strength lies in the strong financial condition of our borrowers and their own sound business practices.” He also emphasized the Association’s diversity as a great strength to offset risk. Improvement in economic conditions has opened up opportunities for capital investments in all sectors of agriculture, with wine grapes, nuts, grains, and cattle remaining strong. COO Byron Enix The Association experienced significant loan growth in 2012, with loan vol- Over the past six years, American AgCredit has returned more than $166 mil- “As a cooperative, American AgCredit returns dividends to customers based on their patronage, or loan volume, effectively reducing interest rates paid by returning 1% of our borrower’s average daily loan balances,” said Chief Financial Officer Vern Zander. “A strong capital base and a customer dividend are important components of American AgCredit’s business values.” A message from Ron Carli, President & CEO Growth in all directions: Planting the seeds for tomorrow Y our Association can look back on a strong first dairy exports remain strong. Beef exports have de- quarter of 2013 that has set the foundation for a clined due to lower supplies, while imports have in- stable and successful remainder of the year. To date, creased to partially fill domestic demand. Overall, feed the year has been positive, most commodities are do- prices are expected to stay high through mid-2013 and ing well, and we are seeing strong loan growth con- then gradually decline, providing producers only mod- tinuing from Q4 2012 into this year. est relief. Financials We have seen a general improvement Corn production is expected to be lower in 2013 compared to a year ago. Exports are expected to de- First quarter net income totaled $29.0 million compared crease, causing prices to be slightly lower. Winter to $24.7 million a year ago. Net interest income is up wheat conditions in the Plains states are worse than $1.3 million, and the loan portfolio grew by over $432 last year because of continuing drought and variable million compared to the same quarter one year ago. weather. Projected average yields could be higher than last season. Nonaccrual loan volume at the end of the first quarter was $111.9 million, up $18.7 million from the first quarter of 2012 and represents 1.9% of our total slight week-to-week gains. Green chopping is being fed and are hopeful loan volume. to cows and the resulting seasonal increase in milk is of more favorable Loan credit quality is high, and year-over-year loan being noted. Snow pack and precipitation have been growth at March 31st exceeded 8%. The Association’s well below seasonal norms. As a result, alfalfa planted conditions as we strong capital base continues to ensure our position as acreage is estimated to be down by 3 – 5% in Califor- approach the third a dependable, safe, and secure long-term agricultural nia. China plans to double its milk production in the lender. next five years, a move that will require it to import lots of quality hay, which should stabilize prices for the in market conditions quarter. For comparative charts, take a look at page 8. More In the Western states, milk production is seeing lion in dividends to member borrowers in California, Colorado, New Mexico, Ne- detailed financials can be found on the website under remainder of 2013. vada, Kansas and Oklahoma. Shareholder Reports. The California growing season has experienced “Our emphasis on a strong capitalized organization, along with solid earn- consistently warm weather with few cold spells. The ings, allows us to pay a substantial cash dividend” added Carli. “Our mission is to Commodity update ensure that reliable financing remains available to agricultural producers in our We have seen a general improvement in market condi- heavy crop sizes being experienced in all regions. Due territory. In order to do this, American AgCredit must remain a safe and sound tions and are hopeful of more favorable conditions as to early rains and an abnormally dry spring, water was organization that can meet the needs of a constantly changing marketplace.” we approach the third quarter. considered to be of concern for many growers through- crop appears to be of good health with average to Kansas and Oklahoma have experienced some rains out California. However, due to little frost experienced and periods of snowfall towards the latter part of the throughout the state, many of those concerns have first quarter, giving the 2013 wheat crop a much need- been eased. Overall, the 2013 growing season is on ed boost. Due to lack of moisture in the early growing track to be a quality vintage. phase, however average yields are likely to be less fa- vorable than last year throughout the Plains. strong cherry crop and strong prices for almonds mak- Currently, livestock markets are bearish on all ing that commodity look promising for harvest. fronts. Feedlot placements have been higher than ex- Our Valley plantings are also doing well, with a pected, but markets are steady. Association update In the Colorado area, milk prices remain strong due A year has passed since our merger with Farm Credit Ser- to slight decreases in production. Nationally, milk cow vices of the Mountain Plains. We are pleased to report numbers are expected to decline even as production that operations are running smoothly throughout the per cow is expected to increase 1% in 2013. However, continued on page 7 American AgCredit | Harvest, Spring 2013 3 Partnering to reach new farmers & ranchers A ccording to recent data, beginning farmers under age 35 tend to operate larger farms than their old- er beginning farmer peers. According to USDA data, in 2011 the average age of a beginning farm operator in the U.S. was 49 years old, compared with 60 for established farms. Culled from the article “Younger Beginning Farm- ers Tend to Operate Larger Farms” by Mary Ahearn in Amber Waves, it is clear from the data that many of these new farmers under 35 years old appear to be less risk-averse. They gross more farm sales, earn more onfarm income, earn less off the farm, and tend to operate profitable businesses. Though the information is encouraging, it’s important to evaluate other factors MAY 31-JUNE 2 JUNE 8-9 JUNE 19 JULY 10 Are they better than their older more established Spring Fair, Redwood Empire Fairgrounds, Ukiah, CA Russian River Valley Winegrowers Passport to Pinot, Various, , CA Central Region Customer Appreciation Event, AT&T - Giants Stadium, San Francisco, CA ginning farm operators might want to borrow from Sonoma Marin Fair, Petaluma Fairgrounds, Petaluma, CA Lake County Farm Bureau Annual Meeting and Dinner, Cole Creek Equestrian Center, Kelseyville, CA JULY 18 Sonoma County Farm Bureau Love of the Land, Richards Grove, Windsor, CA peers? What “agripreneurial” characteristics, skills or JULY 25-AUG 11 Sonoma County Fair, Sonoma County Fairgrounds, Santa Rosa, CA abilities do the new farmers share that give them a leg AUG 1-4 up? Do they come from larger operations that might AUG 17 be more conducive to larger spin-offs? The answer is very likely a combination of all three, with the primary “advantage” aligning with common attributes for any successful business: entrepreneurial venture—the bigger the risk, the greater the potential reward. n Earnings are based on effort, efficiency and time. Bigger operations demand and respond to increases in all three. n Young people seem to have high expectations that may demand and respond to farming as a profession, rather than a lifestyle or hobby. Lake County Fair, Lake County Fairgrounds, Lakeport, CA AUG 30-SEPT1 Sonoma County Vintners Wine Country Weekend, Various, Healdsburg, CA SEPT21 SEPT28 OCT 4-6 OCT 24 OCT 27 JUNE 17-21 JULY 12-13 TBD JUNE 16 JULY 19-21 JULY 4 JULY 27-28 AUG 7-11 AUG 17 July 10-14 have much higher debt-to-asset ratios than older be- July 11-13 ginning farmers. One factor in the viability of young July 12-18 farmers will be the degree to which they can manage July 13-20 their business-related debt into the future. JULY 17 Evaluating trends like this is important to be able July 17-20 to respond to changes in the agricultural marketplace. July 17-20 Over the last couple of years American AgCredit has July 24-27 not only expanded the support it provides young, be- July 24-29 ginning, small and diverse farmers, the Association July 25-29 July 27-31 July 30 July 31 Hutch Fest, Hutchinson,KS Barton Co Fair, Great Bend Expo, Great Bend,KS 3-I Show, Western State Bank Expo Center, Dodge City,KS Rice County Fair, Celebration Center, Lyons,KS Edwards Co Fair, Kinsley Fairgrounds, Kinsley,KS Sedgwick County Fair, Sedgwick County Fairgrounds, Cheney, KS Pretty Prairie Rodeo, Pretty Prairie, KS Stafford Co Fair, Stafford Fairgrounds, St. John, KS Pawnee Co Fair, Pawnee Co Fairgrounds, Larned, KS Reno County Fair, Kansas State Fairgrounds, Hutchinson,KS Kingman County Fair, Kingman Fairgrounds, Kingman, KS Butler County Fair, Fairgrounds, El Dorado, KS Customer Appreciation BBQ, Trousdale Methodist Church, Trousdale,KS Customer Appreciation BBQ, Radium Community Center, Radium, KS Masten Ramsey Memorial Rodeo, Alturas Livestock Complex, Alturas, CA Pinot on the River, Healdsburg Plaza, Healdsburg, CA Pawhuska, OK Silver State Stampede, Elko Co. Fairgrounds, Elko, NV Northern Zone FFA Livestock Show and Sale, Elko Co. Fairgrounds, Elko, NV AUG 8-11 Santa Fe Trail Days, Larned, KS Osage County Cattlemen’s Association Annual Convention & Ranch Tour, Osage County Fairgrounds, Pawhuska, OK Ben Johnson Memorial Steer Roping, Osage County Fairgrounds, Modoc Co. Jr. Livestock Show, John Cummings Mem. Livestock Grounds, Alturas, CA CA Heartland Region ginning farmers report losses and, on average, they continued on page 7 Russian River Valley Single Vineyard Night, Ft Mason, San Francisco, Intermountain Region AUG 22 farm businesses. Still, more than half of young be- riculture businesspeople. Kelseville Pear Festival, Kelseyville, Kelseyville, CA Sonoma County Harvest Fair, Sonoma County Fairgrounds, Santa Rosa, CA JUNE 14-16 expand its reach and awareness among these new ag- Lake County Wine Alliance and Auction, Cole Creek Equestrian Center, Kelseyville, CA ers under age 35 have more debt than older beginning has partnered with other Farm Credit institutions to Mendocino County Fair and Apple Show, Boonville Fairgrounds, Boonville, CA JUNE 7-9 share of young beginning farmers operate profitable Rush County Fair, Rush Co Fairgrounds, LaCrosse, KS July 31-Aug 3 Chautauqua County Fair, Fairgrounds, Sedan, KS Aug 1-5 Cowley County Fair, Fairgrounds, Winfield, KS Aug 2-4 Sumner County Fair, Fairgrounds, Caldwell, KS AUG 3 Hereford Association Tour and Lunch, Windom, KS AUG 6 Salina Tri Rivers Fair Parade, Salina, KS Aug 7-10 Harper County Fair, Harper Fairgrounds, Harper, KS AUG 10 Salina Tri Rivers Fair Sale and Doughnuts, Salina, KS Aug 11-17 Rooks County Free Fair, Fairgrounds, Rooks County AUG 24 Yoder Days, Yoder, KS Sept 6-15 Kansas State Fair, Fairgrounds, Hutchinson, KS Sept 10-15 Kay County Fair, Kay County Fairgrounds, Blackwell, OK Oct 23-26 Arkalalah Festival, Arkansas City, KS July 31-Aug 3 Windsor, CA It’s important to note that although beginning farmfarmers and have lower average net worth, a higher Redwood Empire Fair, Redwood Empire Fairgrounds, Ukiah, CA Russian River Valley Winegrowers Grape to Glass, Richards Grove, AUG 29-SEPT1 SEPT13-15 n There is a risk-reward balance in every 4 American AgCredit | Harvest, Spring 2013 MAY 30-JUNE 2 Auction Napa Valley, various locations, CA JUNE 19-23 We believe that by working together our impact is more substantial. These projects symbolize our commitment to make Farm Credit stronger and to benefit all levels of agriculture. Central Region going into that success, and what elements these betried and true management techniques. Annual combined alliance outreach contributions in California, Kansas, and Oklahoma total approximately $371,000. Co-sponsored advertising – not included in this total – is another avenue of partnering that we have expanded. As a group, our alliance partnerships also support large industry investments, many of which are spread out over an allocated period. These include: n Colorado State University Center for Agricultural Education ($1.025 million) n Cal Poly Finance and Appraisal Chair ($60,000) n Farm Credit Dairy Center naming rights ($45,000) n Western Growers Association ($30,000) n Fresno State Multicultural Scholars in Agriculture ($90,000) Events AUG 22-25 AUG 26 Elko Youth Rodeo, Elko Co. Fairgrounds, Elko, NV Siskiyou Golden Fair, Siskiyou Golden Fairgrounds, Yreka, CA Eureka County Fair, Eureka C. Fairgrounds, Eureka, NV Rancher’s Roundup, Lamoille Rancher’s Center, Lamoille, NV Siskiyou Co. Cattlemen’s Field Day, Cowley Ranch, Shasta Valley, CA Modoc District Fair, Modoc Co. Fairgrounds, Cedarville, CA Tri-Counties Cattlemen’s Field Day, (Modoc, Lassen, Tehama) Lassen Co. Fairgrounds, Susanville, CA Elko Customer Appreciation BBQ, Elko Basque Club, Elko, NV AUG 30 - SEPT 2 Elko County Fair & Livestock Show, Elko Co. Fairgrounds, Elko, NV SEPT 5 Tulelake-Butte Valley Fair, Tulelake Fairgrounds, Tulelake, CA AUG 29 Mountain Plains Region June 4-6 June 17-19 July 6– 14 Colorado FFA Convention, Northeastern Junior College, Sterling, CO Colorado Cattlemen’s Association/Colorado Livestock Association Joint Convention, Beaver Run Resort, Breckenridge, CO Gunnison County Cattlemen’s Days, Fred Field Western Heritage Center, Gunnison, CO July 16-20 July 17-18 Mesa County Fair, Mesa County Fairgrounds, Grand Junction, CO Colorado Wool Growers Association Convention, Montrose Pavilion, Montrose, CO July 19-28 July 24-29 J uly 29-Aug 3 July 29-AUG 3 July 31-AUG 4 Montrose County Fair, Montrose County Fairgrounds, Montrose, CO Weld County Fair, Island Grove Regional Park, Greeley, CO Montezuma County Fair, Montezuma County Fairgrounds, Cortez, CO Rio Blanco County Fair, Rio Blanco County Fairgrounds, Meeker, CO Adams County Fair, Adams County Fairgrounds, Brighton, CO continued American AgCredit | Harvest, Spring 2013 5 Events Partnering continued from page 4 Add some Horsepower to your business In California, Kansas and Oklahoma, we work What if you could reach more buyers, in more plac- extensively with our other Farm Credit associations es, do it yourself, and spend less than 10 minutes to support a broad spectrum of trade shows, pro- doing it? Many farmers today are asking the same grams and events. By leveraging our sponsorships questions and coming up with interesting answers. and investments, we have been able to assist young One of these farmers is Ralph and Diane Friend, a and beginning farmers interested in entering the Mountain Plains Region continued AUG 2-5 AUG 2-11 AUG 2-6 AUG 4-10 AUG 4-10 AUG 5-11 AUG 7-11 AUG 8-11 Archuleta County Fair, Archuleta County Fairgrounds, Pagosa Springs, CO Boulder County Fair, Boulder County Fairgrounds, Longmont, CO Larimer County Fair, The Ranch, Loveland, CO Delta County Fair, Delta County Fairgrounds, Hotchkiss, CO Moffat County Fair, Moffat County Fairgrounds, Craig, CO Garfield County Fair, Garfield County Fairgrounds, Rifle, CO La Plata County Fair, La Plata County Fairgrounds, Durango, CO Southeast Weld County Fair, Southeast Weld County Fairgrounds, Keenesburg, CO AUG 9-11 AUG 15-18 AUG 29-31 SEPT 5-8 SEPT 12-13 Strasburg Hometown Days, Downtown Strasburg, Strasburg, CO Routt County Fair, Routt County Fairgrounds, Hayden, CO Ouray County Fair, Ouray County Fairgrounds, Ridgway, CO Jackson County Fair, Jackson County Fairgrounds, Walden, CO Realtors Land Institute - Colorado Chapter, Courtyard by Marriott, SOUTHERN CALIFORNIA REGION JUNE 5 Convention Center, Long Beach, CA JUNE 15 JUNE 19 JULY1 JULY16 CSU Ag Day, Colorado State University, Fort Collins, CO JULY16 AUG7 SEPT13 SEPT19-22 SEPT19 JUNE 4 JUNE 20-23 JULY 20-21 August AUG 14-25 AUG 16 FFA Project Competition Banquet, Wharfinger, Eureka, CA Redwood Acres Fair, Fairgrounds, Eureka, CA Fortuna Rodeo, Rodeogrounds, Fortuna, CA Humboldt Del-Norte Cattleman’s Fall meeting, Eureka, CA Humboldt County Fair, Fairgrounds, Ferndale, CA Eureka Customer Appreciation Event, Fairgrounds, Ferndale, CA October OCT 17 June 7 June 15 June 21 Ag Against Hunger Agricultural Woman of the Year Luncheon, JUNE 1 June 21-23 July 12 July 18-21 Aug 1-Aug 4 Aug 22 Aug 22 Aug 28-Sept 2 Sept 10-15 Oct 4-6 Oct 24 JUNE 3 Monterey Bay Greenhouse Growers Open House, Various Locations, JUNE 12-16 Watsonville, CA JUNE 12-16 San Mateo County Farm Bureau Golf Tournament, Half Moon Bay JUNE 15 JUNE 22-JULy 1 Club, Monterey, CA JULY 1 Monterey County Vintners & Growers Association BBQ & Trade Fair, Estancia Vineyard Park, Soledad, CA California Rodeo Salinas, Salinas Sports Complex, Salinas, CA Santa Clara County Fair, Santa Clara County Fairgrounds, San Jose, CA Monterey County Farm Bureau Golf Tournament, Bayonet/Black JULY 12-21 JULy 12-28 Aug 8 Aug 10 Sep 12 California Strawberry Growers Golf Tournament, Pajaro Valley Golf Sep 21-22 Monterey County Fair, Monterey Fairgrounds, Monterey, CA Santa Cruz County Fair, Santa Cruz County Fairgrounds, Watsonville, CA San Benito County Fair, Bolado Park, Tres Pinos, CA Monterey County Farm Day, Monterey Fairgrounds, Monterey, CA and events. These include: Sep 21 Oct 2 Oct 4 Oct 5 Ontario Branch Annual Fishing Trip, The “Fury”, Dana Point, CA Fresh Produce and Floral Council Meeting, Sheraton, Cerritos, CA California Association of Nurserymen, California Country Club, products, and the tools to sell those products more efficiently and directly. As a Farm Credit borrower you can use Horsepower to: n Broadcast your products to the world n C alifornia Farm Bureau Young Farmer Leadership n Meet new customers in the Feed/Forage Marketplace Conference Southwestern Golf Tournament, Girls and Boys Club, Bermuda Dunes The California Farm Credit Alliance is now working with Horsepower.com to bring new services to our borrowers, giving them a place to market their Conference n Efficiently manage your marketing n Save time with Horsepower Account Managers Country Club, Bermuda Dunes, CA n K ansas Junior Livestock Show Scholarships San Diego Farm Bureau Annual Golf Tournament, St. Marks Golf n C alifornia 4-H Livestock Judging Team We encourage you to sign-up for Horsepower.com today. Discounts are of- Orange County Annual Steak Fry, Magarro’s, Irvine, CA Avocado Society Annual Meeting, Huntington Library and Gardens, n K ansas Youth Rodeo Associations fered on Horsepower.com to any American AgCredit, Farm Credit West or PEPA Jim Eastman Golf Tournament, TBD San Bernardino County Farm Bureau Annual Meeting, TBD n A g in the Classroom Contra Costa County Fair, Contra Costa Fairgrounds, Antioch, CA District 6 Dairy Princess Contest, Our Lady of Assumption Hall, Turlock, District 5 Dairy Princess Contest, Chez Shari/Manteca Golf Course, Ripon Christian Golf Tourney, Springcreek Golf and CC, Ripon, CA Barbera Festival, Plymouth Fairgrounds, Plymouth, CA Merced County Fair, Merced Fairgrounds, Merced, CA San Joaquin County Fair, San Joaquin Fairgrounds, Stockton, CA San Joaquin Wine Auction, Hutchins Street Square, Lodi, CA Alameda County Fair, Alameda County Fairgrounds, Pleasanton, CA Mid Valley Ag Golf Tourney, Oakdale Country Club, Oakdale, CA Stanislaus County Fair, Stanislaus County Fairgrounds, Turlock, CA California State Fair, Cal-Expo, Sacramento, CA Turlock Customer Appreciation Luncheon, Turlock Branch Office, Children’s Guardian Dinner, Borges Park, Farmington, CA Merced County Holstein Golf Tourney, Rancho Del Rey, Atwater, CA Hughson Nut Festival, Downtown Hughson, Hughson, CA Cowboy Museum Dinner, Pioneer Equine Hospital, Oakdale, CA Conlin Supply Open House, Conlin Supply Store, Oakdale, CA CSUS – Taste of the Valley, Stanislaus County Fairgrounds, Turlock, CA San Joaquin County Swiss Club Oktoberfest, Swiss Club Hall, Ripon, CA CoBank customer for enrollment and business tools. n C alifornia Small Farmer Conference n C alifornia Girl Scout Ag Adventures Like any plant, growth and change typically come from the ground up. Our priority as a supporter of agriculture is to nurture that The future of agriculture is in the hands of the young, beginning, small, and diverse farmers of today. growth and change into the future. Today, these efforts include providing support for the abovementioned programs and organizations, along with value-added information such as financial planning seminars, young farmer/rancher leadership training, and business programs such as Horsepower (see sidebar). The future of agriculture is in the hands of the young, begin- ning, small, and diverse farmers of today. Our goal is to be there for the next generation, and help them to thrive in the new agricultural marketplace. CEO Message continued from page 3 Association. We’re still in the planning stages for our new administrative headquarters building, and great progress has been made. We’ve hired a contractor and an architect; design options are now being reviewed. On the construction front, we’re scheduled to move into our new Salina, Kansas, building in the Fall, with remodels of both the Oakdale (CA) and Ponca City (OK) offices slated to be completed later this summer. In addition to our facility improvement efforts, our expansion into the crop in- surance business has continued. We’ve acquired a new agency in California, and our first one in Colorado. This is an effort that we feel brings great value to our member customers. We have clear goals to continue to grow our crop insurance business through partnerships and acquisitions, which means we’re bringing on staff with expertise and knowledge who can hit the ground running to help you plan your crop and livestock insurance portfolio. In our effort to support the new retail markets expanding within agriculture (see Spring 2012, “The Changing Face of Agriculture”) we’re strategically expanding our alliance with Farm Credit West (CA) and CoBank to provide support for growing agribusiness trends. This includes sponsorship of the Small Farmers Conference as well as a first-time sponsorship with Horsepower, an online clearinghouse for direct sales between producers based primarily in California. For more information on these efforts, see the box above. Elements of this article were excerpted from Amber Waves: The Economics of Food, Farming, Natural Resources, and maintain low interest rates into the foreseeable future. These historically low rates Rural America, produced by the USDA, and Kevin Spaf- provide excellent opportunities for business expansion, business diversification, ford’s Farm Journal Legacy Moment. and equipment leasing. Your loan officer can provide additional information on how we can work with you to meet your business needs. To read the original article and to see the USDA data, go to: http://www.ers.usda.gov/amber-waves.aspx 6 American AgCredit | Harvest, Spring 2013 any buyer, anywhere. n K ansas Farm Bureau Young Farmer and Rancher Turlock, CA Horse Golf Courses, Seaside, CA Club, Watsonville, CA Fresh Produce and Floral Council Produce Expo, Disneyland Hotel, Manteca, CA JUNE 8 Grower-Shipper Golf Tournament & Gala, Corral de Tierra Country ships of a broad spectrum of diverse ag-related groups CA Paraiso Vineyards, Soledad, CA Golf Links, Half Moon Bay, CA Del Mar, CA VALLEY REGION May 30-JUNE 2 online farm-to-fork marketplace that helps farmers market their products to In addition to 4-H and FFA programs, our Alliance partnerships also include donations for and sponsor- San Marino, CA JUNE 5 SALINAS REGION Course, San Marcos, CA SEPT21 Friend they have launched Horsepower.com, an learning efforts. Whittier, CA September NORTHERN REGION Farm Tour Day, Various farms, North San Diego County, CA Fresh Produce and Floral Council Meeting, Sheraton, Cerritos, CA San Diego County Fair Junior Livestock Auction, Del Mar Fairgrounds, borrower in Tulare County. With their son Landon ing their involvement, and supporting a variety of Anaheim, CA Grand Junction, CO SEPT 28 California Grown Show - Plant & Flower Growers Expo, Long Beach fourth generation farming family and Farm Credit marketplace by beginning a dialogue, encourag- The global economy is still on tentative ground with continuing pressure to Wishing you all a healthy and happy Summer, and good weather as well! American AgCredit | Harvest, Spring 2013 7 Financial Highlights Scholarships 2012 2011 2013 Net Income (in millions) Total Assets (in billions) $200 $8 merican AgCredit hosted its 16th Annual Golf Tournament in the Valley Region—benefiting the $7 $150 American AgCredit Educational Scholarship Fund $6 at Oakdale Golf and Country Club on May 6. Each year the event raises money to cover the cost of the $5 $100 tournament plus funds to cover the region’s scholar- $4 $50 Valley Region golf tournament update A ships, which are awarded to students from local area $3 colleges. This year a total of $8,000 in scholarships $2 were awarded to eight students. $1 $107.26 $180.66 $29.03 $6.19 $5.74 $6.21 $4.72 $24.74 $0 lege, California State University–Stanislaus, Modesto A As of Dec. 31 As of March 31 As of Dec. 31 sive survey done of the wine industry since Moss Adams completed its own survey in 2009. Since the last survey, several improvements and technical enhancements have been made to streamline the survey process, and to assist both respondents and analysts in evaluating the wine market data more efficiently. These changes include: riety of agriculturally-related fields. 25% 100% 20% 80% 15% 0.03% 4.04% California State University–Stanislaus Mary Giusto, Acampo Mirna Alcala, Hilmar 60% 10% Modesto Jr. College Rosemary Giannini, San Andreas Nicole Hefner, Springville 40% 5% San Joaquin Delta College John Donnelly, Farmington Sasha Hazel, Stockton 20% 20.30% 20.63% 95.93% 0% 95.77% 0% As of March 31 The eight students who received scholarships are: Merced Community College Katie Jo Dumford, Snelling Andrew Ornelas, Winton 0.04% 4.19% As of March 31, 2013 As of Dec. 31, 2012 Substandard Doubtful Acceptable/OAEM (Other Assets Especially Mentioned) Golf tournament results: 1st place grossAlbert Conlin, Tim Sands, Ryan Nickell, Clint Hjelm 1st place netKeith Robertson, Kyle Robertson, Justin Durrer, Fred Straus Commodities Financed 2nd place netDave Abraham, Dave Van Elderen, Dale Van Groningen, Bud Den Ouden As of March 31, 2013 Other 16% Wine Grapes and Wine 17.1% Beef, Poultry & Other Livestock 15.1% Dairy Farms and Products 13.3% Field Crops 13.4% 4.5% Melons Tree Fruits and Nuts and Vegetables 10.2% Forest Products 3rd place netBob Ketcher, Joe Lavagnino, John Ketcher, Alex Brown Closest to the Pin Men – Les Azevedo Women – Karen Nichols Longest Drive Men – Ryan Nickell Women – Cindy DeVisser The 2013 Moss Adams Wine Industry Financial Benchmarking Survey will be the first comprehen- scholarships in the amount of $1,000. Students re- Credit Quality survey of the wine industry with accounting firm try partners. ceiving the scholarship awards are studying in a va- Permanent Capital Ratio merican AgCredit is co-sponsoring a multi-state Moss Adams and other Farm Credit and wine indus- Jr. College, and San Joaquin Delta College, received $0 For 3 months ending March 31 Two students each from Merced Community Col- Multi-state wine industry survey launches in 2013 their data electronically and securely in the survey form, or to send it in directly to Moss Adams. n Developing four distinct tracks for wineries, vineyards, and negociants The survey partners n Streamlining the financial information requirements and consulting services firm in the nation. Moss Ad- Moss Adams LLP is one of the largest accounting, tax, n Reducing and/or condensing the number of questions ams is the business partner of choice for more than n Collaborating with and distributing the survey through industry leaders, such as wine industry associations, trade groups, and publications, and a select group of Farm Credit Alliance Partners – American AgCredit, Farm Credit West, Northwest Farm Credit and CoBank – as well as Turrentine Brokerage, a wine grape brokerage firm. 300 wineries and vineyards. Their Santa Rosa and The survey was officially launched on May 20, 2013, and will be open for anyone in the wine industry through July 22, 2013. Final results will be published later in October 2013. About the survey The confidential results will focus primarily on financial statement information and allow common-sized wine-related businesses to evaluate what the market and their competitors are doing. pant is not disclosed. Participants may elect to submit The report will be a useful tool for wineries and growers in California, Oregon, and Washington to measure their businesses against industry leaders and prepare their strategies for the years ahead. Survey results will provide insights on a range of topics, from sales and production data to operating and financial Napa offices serve as the headquarters of the firm’s wine industry practice. Farm Credit Alliance Partners – American AgCred- it, Farm Credit West, Northwest Farm Credit and CoBank – provide financing, leasing, insurance, and other financial services to agriculture and agribusinesses as part of the Farm Credit System. Founded in 1916, the Farm Credit System is a nationwide network of banks and retail lending associations chartered to support the borrowing needs of U.S. agriculture and the nation’s rural economy. The System specializes in providing financing and related services to borrowers in the agricultural and rural sectors through four Sys California regions and wines in bulk from California and around the world. Turrentine Brokerage serves as a trusted and strategic advisor to deliver customized solutions for growers, wineries and financiers: metrics by region. To participate in the survey, visit: www.mossadams.com/winesurvey All submitted data is held in strict confidence. The raw and have readily available so that you can have them Hole in 1 winnerRod Douma. (4 day/3 night Golf Vacation) data and associated identities of participants are acces- at your fingertips and lessen the time needed for the Putting Contest sible only by authorized Moss Adams LLP survey staff. survey. The site lists documents you will need to prepare Only aggregate data is disclosed in the statistical reports The team effort of the Valley Region staff has made and other analyses. Data will only be aggregated in your unique survey link and instructions. If you do the annual tournament a successful event. Next year’s groupings that have a sufficient number of participants not receive the email within 5 minutes, check your tournament is scheduled for Monday, May 5, 2014. to ensure that the information of any individual partici- spam folder. Thank you for your participation! Close Online Survey July 22, 2013 Publish & Distribute Report October 2013 Turrentine Brokerage brokers winegrapes from all 10.4% Open Online Survey May 20, 2013 tem Banks and 82 affiliated Associations. Confidentiality Rich Gemperle Important Dates Once registered, you will receive an email with PRIZE GIVEAWAY! American AgCredit has set aside three special gifts for customers taking part in the survey. Winners will be selected via a random drawing of those businesses who have successfully completed the survey. Prize drawings will be done at three-week intervals – on Friday June 7, Friday June 28, and Tuesday July 23. American AgCredit | Harvest, Spring 2013 9 Kansas Wheat Innovation Center officially open U shering in a new era of investment in will play a big role in helping U.S. wheat wheat research, the Kansas Wheat Com- farmers meet the population’s growing de- mission hosted a Ribbon Cutting and Open mand for food.” House of the Kansas Wheat Innovation Center, on April 26 in Manhattan, Kansas. tion Center (KWIC) was built by the Kansas “We are excited to share the story of Wheat Commission, through the penny- how the Kansas Wheat Innovation Center and-a-half Kansas wheat checkoff. The Farm will lead the way in new wheat research that Credit Associations of Kansas and CoBank The official ribbon cutting was symbolized by gives Kansas wheat farmers the tools to pro- pledged $300,000 in matching funds to en- cutting an 8-foot-long loaf of bread. duce high-yielding, high-quality wheat vari- sure the $8.3 million, 35,000 sf center was eties that will continue to feed the world,” built. It represents the single largest invest- said Rich Randall, chairman of the Kansas ment by wheat farmers in the nation. The erations of Kansas wheat leaders, that Kan- Wheat Commission and farmer near Scott Center was built on land owned by Kansas sas will always be known as ‘The Wheat City. “The world population is expected to State University; the Kansas Wheat Com- State,’” said Justin Gilpin, chief executive reach 9 billion people by 2050. The KWIC mission has a 50-year lease on the property. officer of the Kansas Wheat Commission. The $10.3 million Kansas Wheat Innova- “The KWIC fulfills a vision held by gen- About the Kansas Wheat Innovation Center Construction on the $10.3 million Kansas Wheat Innovation Center began in October, 2011 and the facility was completed in November 2012. Kansas Wheat staff moved in the last week of November 2012. The KWIC features 35,000 square feet of space, including: n 15,000 square feet of research laboratories. This space is currently occupied by Heartland Plant Innovations, where researchers are developing “doubled haploid” wheat lines, which enable pure lines of wheat to be developed quickly, reducing the time needed to create wheat varieties by about 50%. The laboratory section features 13 environmentally controlled growth rooms, in which young plants can be grown in a controlled environment. The laboratories include space that can be used by K-State’s Wheat Genetics and Resource Center. n 10,000 square feet of greenhouses. Four greenhouse rooms are used to grow out wheat plants in the doubled haploid process. One of the rooms is air-conditioned, allowing for research to occur even in the summer. All four units have automated controls for shade, ventilation and watering. The greenhouse portion of the building includes a “headhouse” in which soil preparation, potting and seed processing occur. n 10,000 square feet of offices. The KWIC is home to four tenants: Kansas Wheat (the Kansas Wheat Commission and Kansas Association of Wheat Growers); the Kansas Wheat Alliance, Heartland Plant Innovations and the Kansas Foundation for Agriculture in the Classroom. The office portion features a boardroom, large meeting space/classroom and a test kitchen. There are 17 full-time and seven part-time/student employees working at the KWIC. 200 Concourse Blvd., Santa Rosa, CA 95403 Toll-Free: 800-800-4865 E-mail: [email protected] Internet: www.agloan.com