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