apublicationofmidatla nticfarmcreditapublic

A
Volume 11,
10,Issue
9,
Issue31
$3.95
I N
P U B L I C A T I O N
O F
M I D A T L A N T I C
F A R M
C R E D I T
LEADER
T H I S
I S S U E
Understanding your
Cooperative’s Structure: FCA
4
In Search of Faraway Markets:
F. Kevin Leaverton
6
Weaver’s Orchard: Where Freshness
and Family Come Together
8
Therapeutic Riding Centers:
Getting Better is Horse Sense
10
Don’t Drop the
Estate Planning Baton
12
HORIZONS Update
14
Annual Meeting Information
16
Real Estate Wrap Up
18
From the President
“Effective leadership is putting first things first.
Effective management is discipline, carrying it out.”
—Stephen Covey
A
s a new year gets underway, it
seems as if everyone is thinking
about leadership. We review last
year’s results, we make plans to do even
better in the coming twelve months. I think
that desire to improve and to be a leader is
innate in most people—it’s certainly what
makes our country so successful.
In this issue of The Leader, we’ve
focused on several operations that have
led the way for their operations and their industries. Read about
how F. Kevin Leaverton of Centreville, Maryland has diversified his
operation to include everything from international sales of genetics
to catering, or how Weaver’s Orchard of southern Berks County has
implemented high tunnels to protect their fruit crop, or how Breezy
Hill Stables was inspired by a tragedy to start a horse farm that caters
to children with serious illnesses. All of these members have changed
their operation to reflect their changing lives and changing industries.
Speaking of change, we’ve mentioned before the Farm Credit
System’s look at how agriculture has changed with our forward-looking Project Horizons. In late January, we sent each of our members a
packet of information with more details on the project and its findings; we’ve included a complete project overview in this issue on
page 14. As you know, Horizons has been a long-term, comprehensive effort, with an emphasis on grassroots participation. I’m very
impressed with how the entire System has come together to look at
how we can best serve our customers—both now and in the future.
Look for more information on Horizons in the coming months.
One of the things that I love about Farm Credit is the personal relationship that we have with our borrowers. Our local commitment—to
our members, to our industry, and to our community—is paramount
to our success. That won’t change. But one of the things that I’d like our
members to know is that we’re part of a $117 billion organization—
with offices in every state, and serving every rural community. That’s
why this year we’ve chosen a theme of “The Big Picture” for our annual
stockholder meetings. I hope you’ll come out to join us (you can see
the entire schedule of meetings, as well as more details on our program
on page 16). MidAtlantic is all about our members—so I hope that I’ll
see a record-breaking number of you there! It’s a great opportunity to
network with your fellow ag professionals, as well as a chance to hear
important updates about your cooperative.
As Stephen Covey’s quote indicates, it’s important to be a leader.
But it’s also important to be an effective manager. I hope you’ll join
us at our annual stockholder meetings to learn how the staff at
MidAtlantic Farm Credit is committed to being both, and serving
you even better in the coming year.
Hope to see you in April!
Events &
Deadlines
Mar
Event
9-12
11
Pennsylvania Garden Expo
Harrisburg PA
Organic Growers School
Flat Rock NC
Blue Ridge Community College
Washington County
Hagerstown MD
Homebuilders Show
Sales Closing: corn, soybeans, AGR lite
Lancaster County
Lancaster PA
Spring Home Show
Frederick County
Frederick MD
Homebuilders Show
Lebanon County Builders Show Lebanon PA
Pennsylvania Holstein
Harrisburg PA
Association Spring Show
Delaware Horse Expo
Harrington DE
Home on the Shore Expo
Onley VA
11-12
15
17-19
18-19
21-25
24
24-25
25-26
Apr
1
2
1-2
3
4
11
12
14
22-23
Event
Place
Place
Nursery Policy Premiums Due
Daylight Savings Time Begins
Carroll County Home Show
Westminster MD
Annual Meeting
Dover DE
Annual Meeting
Salisbury MD
Annual Meeting
New Holland PA
Annual Meeting
Walkersville MD
Good Friday
Offices closed
Harford Live—Garden Show
Aberdeen MD
Bob Frazee
President, MidAtlantic Farm Credit
mafc.com • Volume 11, Issue 1 •
3
Protecting Our Members
The Farm Credit System has several layers of security to protect its members and keep its
financial institutions safe.
Editor’s note: We received a
lot of positive feedback from
an article in a previous
Leader (Volume 10, Issue 1)
where we gave an overview
of the Farm Credit System
and its various organizations. In response to those
requests for more information on the structure of Farm
Credit, we’re pleased to run
this article with more detail
on our regulator, the Farm
Credit Administration (FCA).
By Sandy Wieber
I
t seems as if the business
section is full of stories of
corporate corruption: risky
business practices, inaccurate
earnings reports, miscommunications to stockholders. How
do you know that your Farm
Credit association is safe from
a scandal in the future?
“I do think that Farm Credit
employees are among the most
honest and ethical that you’ll find
in any field,” says Tom Marshall,
Chief Auditor for MidAtlantic.
Forty-five staff members from the Farm Credit Administration spent two days learning more about agriculture on the Eastern Shore in late October.
Photo by Angel Adams
4
• Volume 11, Issue 1 • mafc.com
The Farm Credit Administration board consists of three individuals:
from left, Doug Flory; Nancy C. Pellett, chairman; and Dallas Tonsager.
Courtesy photo
“I think that’s the nature of
people with rural backgrounds.”
“But that said, it’s important
to have processes in place that
check the safety and soundness
of the institution,” he continues.
To do that, Tom and his staff
perform internal audits and
credit reviews throughout the
year, checking for the integrity
of operations. In addition to
those activities, the association’s
financial statements are audited
by outside auditors (from the
firm of PricewaterhouseCoopers)
and examiners from the Farm
Credit System’s regulator, the
Farm Credit Administration
(FCA), who conduct reviews of
safety and soundness.
An Administrative Overview
The FCA is an independent
agency in the executive branch
of the U.S. government. It is
responsible for the regulation and
examination of the banks, associations and related entities of the
Farm Credit System, and has a
mission of promoting a “safe,
sound and dependable source
of credit and related services for
agriculture and rural America.”
FCA is headquartered in
McLean, Virginia, and has
approximately 275 employees
who are responsible for the
main functions of the agency.
These functions include conducting examinations of all
System institutions; enforcing
safe and sound banking practices, federal statutes and
FCA regulations; issuing and
amending charters for System
institutions; developing regulations, reviewing legal issues
and resolving litigation; handling borrower-related issues
and complaints; and administering the fiscal, personnel and
human resources of the agency.
Taking it from the Top
The Administration is led
by a three person board whose
members are appointed by the
President with the advice and
consent of the Senate. All three
of the current board members
have long resumes that include
participation in agriculture,
banking and various rural
groups. Nancy C. Pellett is
chairman and CEO. She was
appointed to a six year term
by President Bush in 2002,
and was designated chairman
in 2004. Her term expires in
2008. Nancy has extensive
experience in production agriculture and agribusinesses. In
partnership with her husband,
she managed a family-owned
cattle farm from 1966 until her
appointment to the board. She
served as vice president and
secretary of a feedlot, cow-calf
and row crop operation in Iowa
from 1979 until 2002. She was
also president and treasurer of
Fredrechsen Farms, a familyowned swine and row-crop
operation in Walnut, Iowa, for
more than 20 years.
Doug Flory was also appointed
in 2002, for a term that expires
in 2006. Doug is still an owner
of a beef, turkey, grain and hay
farm in Virginia’s Augusta county.
Prior to his appointment to the
FCA board, Doug was a board
member for AgFirst Farm Credit
(MidAtlantic’s funding bank) in
South Carolina, and a director of
Farm Credit of the Virginias.
Dallas Tonsager was
appointed in 2004. Prior to his
appointment to FCA, Dallas was
executive director of the South
Dakota Value-Added Agriculture
Development Center in Huron.
In 1993, he was selected by
President Clinton to serve as the
South Dakota State Director for
Rural Development for the U.S.
Department of Agriculture.
Dallas grew up on a dairy farm,
and is currently a partner in a
diversified crop operation that
includes corn, soybeans, wheat
and hay.
“I do think it’s important that
the board members have strong
ag backgrounds,” says Tom
Marshall, who worked at FCA
from 1986 to 2001. “It’s a continuation of one of the things
that makes our cooperative different. As a lender, we understand agriculture better than
anyone else in the market. As a
regulator, FCA has strong leadership who are committed to
agriculture as well. I’ve worked
on different sides of the table in
the Farm Credit System, and I
can honestly say that Farm
Credit’s commitment to agriculture, and to the borrowers that
are our members, is consistent
at all levels of our organization.”
Looking to the Future
The board of FCA well
understands its role as the
group that regulates the activities of the Farm Credit System.
As Chairman Pellett said in a
speech at AgFirst’s annual meeting last year, “Safety and soundness influences everything we
do at FCA, including policy and
regulation development and
certainly our examination programs. We will…continue to
emphasize strong governance
and the cooperative principles
of a farmer-owned GSE
(Government Sponsored
Enterprise) and work to eliminate outdated or unnecessary
regulations that impair the
ability of the System to accomplish its mission.”
“All the recent problems
and scandals…underscore the
fact that (the System) must be
well-prepared for increased
scrutiny. It is imperative that
you in the System and we as
the arm’s length regulator are
above reproach in our responsibilities and duties and that we
maintain the integrity of the
GSE status,” she said.
MidAtlantic is committed
to that integrity, and has a firm
process in place (in addition to
the processes outlined by FCA)
to ensure that rural America
will continue to have access to
a strong, stable source of credit,
both now and in the future.
To learn more about what the
future holds for Farm Credit,
please see the article on
Horizons on page 14. To learn
more about the Farm Credit
Administration and their mission, you can visit their website
at fca.gov.
❖
mafc.com • Volume 11, Issue 1 •
5
In
Search
of
Faraway
Markets
F. Kevin Leaverton gives
the term ‘diversified
operation’ a whole
new meaning.
Wye Branch Manor, a 7,500 sq. ft. conference and meeting center opened to the public in 2005, houses
F. Kevin Leaverton’s office as well as accommodating the meeting and lodging needs of his growing international
agri-business clientele.
By Gary Hornbacher
I
t’s a long long way from the
Great Wall of China to tiny
Centreville in Queen Anne’s
County, especially if you’re an
Eastern Shore farmer seeking
to penetrate one of the world’s
most shuttered societies, but
then again, F. Kevin Leaverton
is no stranger when it comes
to knocking down faraway
market barriers and finding
new business niches to explore.
All it takes, says the softspoken 40-year old agribusiness entrepreneur, is knowing
where you are going, doing it
well, and doing it with passion.
A lot of passion.
To better understand Kevin’s
accomplishments, though, you
need to back up at least 15
years, and maybe even a whole
lot longer. His family, Kevin
explains, has been farming in
the Wye River area since the late
1700’s and still is very active in
the farming community. In partnership with his parents, F. Reed
and Mary Ellen Leaverton, Kevin
helps manage a diversified grain
farming (corn, soybeans, wheat
6
• Volume 11, Issue 1 • mafc.com
Leaverton, president and COO of Shore Genetics, Inc., shown atop
the Great Wall of China with Nancy Wallace, director of International
Marketing for the State of Maryland’s Business and Economic
Development office. Leaverton recently signed an agreement with
China’s largest province.
and barley) and a longtime dairy
operation that currently has
about 100 milk cows and
another 100 young stock.
It’s work that frequently finds
Kevin driving a tractor or combine. He still spends the early
hours of most mornings in the
field operation. By nine, though,
he is in his office, wearing one
of his many other hats.
“Everybody needs their
things,” says Kevin, “and I
have mine too.”
International Man
It’s those other things—the
‘other side’ of this blue collar
dairy and grain farmer’s professional life—that have taken him
to over 50 countries, including
China; drawn kudos in the
international agri-business
marketplace; and earned him
the recent distinction of being
named a finalist in a Maryland
World (Trade) Center-sponsored Entrepreneur of the Year
award program.
MAFC account executive Dave
Clark and Leaverton share
wide-ranging business interests
in both local and international
ag business development.
Today, Kevin is perhaps
most visible in his role as president/COO of Shore Genetics,
a 15-year old Centreville-based
company which has found a
specialized niche selling
semen, embryos and live cattle
both nationally and internationally. Started by Kevin and
his father and a handful of
other local stockholders as a
stand-alone profit center, the
innovative approach enabled
the men to share testing and
photos by Gary Hornbacher
A wide sweeping central staircase in the conference center’s foyer
leads upward to beautifully appointed guest bedrooms.
Shown here in China, Leaverton is as comfortable educating clients
as he is in negotiating complex international business agreements for
his Shore Genetics business.
development of bulls, reduce
their own costs while improving production and also generate profits by expanding into
new markets.
“Our cows are pretty marketable,” says Kevin, whose
family has generations of
records tracking their beloved
Holsteins that pre-date the use
of computers.
Since buying out his partners
a few years ago, Kevin has
started selling the base of the
business to U.S. distributors and
concentrating on expanding the
international direct sales and
brokering side of the business.
Selecting cows for embryos
and bulls for semen and then
matching them up to a buyer’s
particular needs can be a luckdriven, risk-laden game in itself,
admits Kevin. And doing it in
today’s export marketplace—
whether you’re dealing with
countries like China, where he
recently inked a deal with that
nation’s largest province; Cuba;
or Czechoslovakia, where Shore
Genetics owns cattle—frequently
overlays genetic issues with
complicated market initiatives
requiring government-to-government involvement.
Suffice to say, given Kevin’s
passion and careful planning,
his business ventures have
prospered. His well-thumbed
passport reflects business development dealings with 50-55
countries spread across seven
continents; he has representatives and business associates in
many, and he has become very
involved with the State of
Maryland in international ag
business development.
“Kevin is very successful
exporting genetics,” says Nancy
Wallace, former director of
International Marketing for the
State of Maryland’s Agricultural
Department and current director
of International Operations for
the state’s Business and Economic
Development office. “He’s been
awarded several competitive
Spacious rooms and classic decor create intimate settings for
everything from business entertainment to private functions.
grants and has been involved in
more than 20 of our programs
in some 20-25 countries.”
“He sees the big picture,”
continues Wallace, “and has a
very diversified, holistic business approach. His beautiful
new conference center is a
great example of that.”
Which brings us full circle
to Kevin’s latest undertaking.
Minutes away from the intersection of routes 50 and 404 in
Queen Anne’s County, Kevin
has created a classically styled
center for small conferences
and seminars which will be
principally used to house and
host individuals and small
groups traveling from abroad to
discuss Shore Genetics-related
business ventures.
New Ventures
Sited on a 230-acre farm
Kevin owns and completed in
late 2005, Wye Branch Manor
is something special—a large,
elegant all-brick home designed
to create an intimate setting for
small business meetings, intimate corporate retreats and even
larger special events like weddings and family reunions.
The home has three living
levels, including six spacious
bedrooms and eight baths;
Kevin’s office; beautifully
appointed common areas,
including an impressive great
room with 22 foot high ceilings;
and two kitchens—one a commercial kitchen on a fourth
(lower) level that abuts a high
tech conference-styled meeting/dining area that can accommodate as many as 300 people
for catered meal functions or
be set up theatre-style for audiovisual presentations.
Throughout the home,
numerous antiques and ornate
furnishings, like Persian carpets
and silk Chinese carpets—many
collected on Kevin’s international
travels—accent hardwood flooring and moldings. Intimate furniture groupings, natural lighting
and wonderful views of the
Upper Wye River countryside
further combine to create that
famed Eastern Shore ambiance.
Kevin explains that some visitors blend tourism and business
while others will do a week’s
worth of seeing cows and bulls
and working on contracts.
“We’ll function as a bed and
breakfast when we’re hosting
international representatives
and guests,” he says, “but we
won’t function that way for
most other groups unless catering is involved.”
“I’ve dealt with Kevin and
his family for years,” says Dave
Clark, Denton office MAFC
account executive, “including
all of the normal financial issues
that come with supporting a
really diversified farm operation.
But financing a conference
center is a first for me.”
“He’s always been an innovator and world traveler,” adds
Clark. “Now he’s got the world
coming to his door.”
❖
mafc.com • Volume 11, Issue 1 •
7
Where Freshness, Family and Now
Technology Come Together
It is a common assumption that farmers get used to the vagaries of weather and their resulting crop
losses; they just persevere and hope for better growing conditions the next year. Such is not the case
with Ed Weaver, a third generation fruit and vegetable grower in Southern Berks County, Pennsylvania
who has seen his share of fruit crops lost to weather conditions.
By Jack Curry
A
fter a series of particularly bad crop years Ed
Weaver decided in 2003
that the time had come to find a
solution to crop losses caused by
frost and rain—or stop growing
one of his most popular and
profitable crops—sweet cherries.
That spring Ed installed, as a
field test, a three bay Haygrove
High Tunnel System covering
about 6/10 of an acre of sweet
cherries. After the first growing
season he was convinced he
had found a solution as he lost
approximately 70 percent of his
sweet cherry crop grown outside the tunnels.
“We were one of the first
orchards in Pennsylvania to try
the high tunnels over fruit trees
and after one season I knew
this was the way to go for the
future,” Ed Weaver says.
Backing up his innovative
commitment, Ed has added
more high tunnels, enough to
cover about four acres. He now
grows not only sweet cherries,
but also raspberries, blueberries
and tomatoes under cover. He
has plans to add even more
tunnels for the 2007 growing
season and to expand the variety of crops grown under the
high tunnels.
Innovation and diversity are what keep a 4th generation family run orchard operation successful as Ed
Weaver, center, shows off his popular apple cider, produced by an on-site cider press. Three generations
of Weavers, left to right, Ed’s father Allen, Ed, and Ed’s son, Justin.
The Haygrove High Tunnel System offers growers of high value fruit
crops an innovative, yet simplistic, way of protecting crops from
weather and bird damage while providing a dry environment for
harvesting, a real advantage for ‘pick your own’ operations.
8
• Volume 11, Issue 1 • mafc.com
Well placed signage leads
customers the short distance
off the main highway to the
Weaver’s Orchard Farm Market,
open year-round, and seasonal
‘pick your own’ fruit orchards.
photos by Jack Curry
As operations manager for the orchard,
Justin Weaver has year-round responsibilities that include checking on the fruit trees
and high tunnel framework even in mid
winter. Left to right, Justin and Ed Weaver.
Tunnel Vision
The decision to invest in the
Haygrove High Tunnel System
on his farm was a move that
was made with a lot of thought
and business planning.
“The basic cost for a tunnel
is approximately $25,000 to
$30,000 per acre, depending
on structural options, but we
see a reasonable pay back
period on the investment,”
Ed explains.
He says the projected useful
life of the steel framework is
15 to 20 years and the plastic
covering usually needs replacing
after three to four years at a cost
of about $4,000 per acre. Ed
plans on using the original
covers from his first three tunnels constructed in 2003 again
this year, which will be four
growing seasons of use.
Ed urges growers who may
be considering high tunnels to
cover only high value crops
worth over $10,000 per acre and
to plan a gradual transition to
tunnel production. He also says
growers have to be committed
to the high tunnel production
system and not to expect to
jump in and out after only a
couple of years.
“You not only have the capital investment in the tunnels,
but you’ve got a learning curve
that takes a couple of seasons
before you become reasonably
A variety of fresh produce is available year-round
at Weaver’s Orchard Farm Market, along with fudge,
tasty breads, pies and baked goods, all prepared onsite. Sampling the apple selection is Richard Smith,
center, an account executive in MAFC’s Lancaster
Office. From left to right, Justin and Ed Weaver.
proficient at integrating tunnel
production practices into your
overall orchard management
system,” Ed says.
Agreeing with Ed’s assessment, Richard Smith, an account
executive in MAFC’s Lancaster
office, adds, “High tunnels allow
growers to mitigate some risks,
but it is critical that high value
crops be grown in them and
growers should approach tunnels as a production system that
will require changes in the way
they’ve traditionally managed
their orchards.”
Smith says the projected
pay back for the high tunnels
is about four to seven years,
making it a relatively sound business investment in technology.
Other Benefits
High tunnel production
also offers growers advantages
beyond protecting crops from
frost and rain. Bird damage can
be reduced by hanging netting
from the structure. Additionally,
the “greenhouse effect” of the
plastic covering induces earlier
bloom, speeding up harvest
dates while still allowing the
fruit to reach optimum maturity,
size and quality.
By allowing the fruit to fully
mature without concern for the
need to harvest early to avoid
rain, Ed estimates the weight
gain on cherries could be as
Attractively packaged fruit baskets have
become a profitable and popular means
of marketing Weaver’s Orchard produce.
True to his commitment for freshness,
Ed Weaver only markets the baskets locally
to insure quality.
much as 10 to 20 percent,
along with longer shelf life and
higher quality fruit. Problems
with bacterial canker after
pruning are also reduced when
the plastic covers are left up
until late summer.
Since Weaver’s Orchard sells
about 60 percent of the fruit
crops through pick-your-own
and a year-round on-site farm
market, the high tunnels provide
Ed with additional advantages.
“Over the years we have
expanded our pick-your-own
operations and now regularly
draw customers from the
Philadelphia and Allentown
areas and beyond,” Ed reports.
“When you’ve got customers
willing to drive an hour to two
hours to pick and buy your fruit
you want them to be assured
that they’ll have plenty of high
quality fruit to pick when they
get here, even if it’s raining.”
Not only do the high tunnels protect the fruit from rain
damage, they also provide a dry
environment for pick-your-own
and for regular harvesting
operations.
While bringing many benefits
to producers, the high tunnel
system is not without some disadvantages or areas of concern.
Some of the negatives according to Ed include: a greater need
for irrigation, (many orchards
are irrigated, but more irrigation
is required when growing fruit
under cover) additional labor
to cover the tunnels during the
busy spring season and again
to uncover the tunnels in late
summer; and normal orchard
maintenance operations, such
as spraying, mowing, pruning,
harvesting, are made somewhat
more difficult by having to work
around the tunnel structures.
“Even with the tunnels
you’ve got to keep a close eye
on weather conditions seven
days a week,” adds Ed. “You
want to put the covers up as
soon as possible in the spring,
but you also must wait until
the threat of heavy snow is
over. On warm days you need
to monitor the temperature
inside the tunnels and vent the
sides if it starts to get too hot
and vent them if high winds
are expected.”
Ed Weaver is committed to
using technology along with
attention to detail, planning
and hard work to insure the
continued success of Weaver’s
Orchard as the farm enters its
fourth generation of family
operation. Smiling, he says,“I
think our motto sums up how
we feel about the farm, our
lifestyle and what we’re trying
to achieve here—‘Weaver’s
Orchard, Where Freshness and
Family Come Together’—that
says it all.”
❖
mafc.com • Volume 11, Issue 1 •
9
Getting
Better
is Horse
Sense
Sometimes we’re
led by things we
can’t quite see.
On a cold winter day, trainer Julie McCutcheon (right) and horse owner Donna Francis take advantage of the
spacious indoor arena at Breezy Hill Stables to get in a lesson with Francis’ horse Tioga.
By Nancy Menefee Jackson
round the farm, and thanks to
agreements forged with neighboring landowners, riders can
access about 300 acres.
“All of the neighbors were
really happy we built this so it
wasn’t houses,” Joe says.
J
oe Topper owns Breezy
Hill Stables in Thurmont,
Maryland, a horse boarding and lesson facility. After the
death of his mom, who had
always been active in charity
work, he felt an urge to get
involved, too.
Since Joe had been boarding
horses for 10 years, he found
a natural fit with Life Horse,
founded in 1996, a charity that
provided riding to terminally
ill children.
It didn’t take long for him
to realize he had found the
right charity.
One of the first riders
who rode with him was a little
girl named Kayla, who had
leukemia. “She said she thought
I was an angel because, as she
said, ‘Only an angel would let
me ride here,’ ” Joe recalls. “She
died a few months later.”
Joe was firmly on the path
of providing a place for seriously ill children to ride—free
of charge. At the same time
Life Horse’s original founder
was unable to continue the
10
• Volume 11, Issue 1 • mafc.com
MidAtlantic Farm Credit’s
Mary Jane Roop visits owner
Joe Topper.
charity, so Topper incorporated
it into his horse operation. His
dream continues to grow: this
past summer, thanks to a loan
from MidAtlantic Farm Credit,
Joe was able to expand his
boarding and charity operation
and build a brand-new state-ofthe-art facility.
Breezy Hill Stables sits on
53 acres, home to 42 horses.
The barn offers 22 stalls, while
nine ample run-in sheds provide field board for 20 horses.
Some four-and-one-half miles
of board fencing stitch across
the land, and heated automatic
waterers in the field make
winter care easy. Trails sur-
Sure Footing
The crown jewel of the facility, which was built by Franklin
Builders, is the indoor arena,
which is 80 feet by 160 feet.
The arena features a new stateof-the-art footing for horses,
made of ground-up sneaker
soles and fine sand, which is
guaranteed to be dust-free for
10 years. The footing cost
$19,000, a price well worth it
to horse owners.
“It’s worth every penny,” Joe
says. “We’ve had horses that
have had lameness issues, and
they don’t have them any more
thanks to this footing.”
Because there is no dust to
aggravate horses’ sensitive respiratory systems, the barn was
designed with a row of stalls on
each side of the arena, facing
the arena, which allows stalled
horses to watch the activity,
rather like barn TV. It also
offers a convenience on wet
days for riders, who don’t have
to brave the elements to get
from barn to arena.
The stalls are separated from
the arena by a barn aisle of
rubber pavers, a surface which
cushions the horses’ feet and
prevents them from slipping, as
they are prone to do on concrete.
The barn also features tack
rooms on each side of the arena,
with generous wooden lockers
for boarders, storage areas for
hay, and two hot and cold wash
racks. Showers and indoor
plumbing for the humans will
be added this spring.
Plans for spring also include
construction of a 125-foot by
250-foot outdoor arena.
Most important, the new
barn, which took three-andone-half months to build, features a spacious heated and air
conditioned lounge, with glass
windows affording a view of
the arena. That was necessary
for the children who come as
part of the Life Horse program.
photos by Nancy Menefee Jackson
“The kids going through
chemotherapy can’t take the
heat,” Joe explains. The lounge,
furnished with tables and
chairs, also means that while
the children wait to ride they
can do activities such as coloring and learning about horses.
Six of the horses at Breezy
Hill are dedicated solely to Life
Horse. One horse, Skippy, is now
retired at age 37, although “he
still gets fired up when it’s feeding time,” Joe says with a laugh.
An Emotional Connection
Some 1,000 children visit
Topper’s stables each year. He
hosts Family Fun Day, an open
house, and at different times,
buses bring children battling
diseases such as cancer, HIV and
sickle cell anemia. Traditional
therapeutic riding programs use
the movement of the horse to
strengthen muscles in children
suffering from conditions such
as cerebral palsy. Life Horse
offers sick children a chance
to make the emotional connection with a horse.
“A lot of families can’t afford
it, and we don’t charge,” says
Topper, who also has a day job
driving a milk truck. “We had
one family who liked to come
just before chemotherapy.”
One little boy asked him if
he could have a rock from the
farm, and Topper later learned
he held the rock through
chemotherapy treatments.
Topper grew up on dairy
farms, and he bought his first
piece of land with money
earned from selling 10 FFA
dairy cows. But after high
school, he worked caring for
a research herd of horses, and
he became fascinated by their
individual personalities.
“That’s how I fell in love
with them,” he says. At the
time, there were few boarding
barns in the area, and so, more
than a decade ago, Topper
started boarding horses.
He credits his trainer, Julie
McCutcheon, with making the
Life Horse program work. “She
is the heart and soul of the program,” he says. McCutcheon
serves as secretary on the board
of directors, and Topper is the
president. The program is run
entirely by volunteers.
Angel Network
Kathryn Barnes and her
daughter Lisa Lynch volunteer
for Life Force. Barnes knew
nothing about horses when she
saw a request for volunteers in
the Frederick News Post seven
years ago.
“It was an excellent opportunity for my kids to learn
about horses and other children,” she says.
Today, Breezy Hill provides
not only quality care for its fourlegged occupants, but it provides the sickest of children
with a chance to bury their face
in a mane, feel the warmth of a
horse beneath them and feel free
while on the back of a horse. ❖
Therapeutic riding has
benefits beyond the obvious
emotional connection
people feel with horses.
The movement of a horse
as he walks is the same as
the movement of the human
pelvis. When a child or adult
rides in a therapeutic riding
program, the more powerful
horse moves their pelvis in
the correct way, helping to
build strength. Some riding
programs have licensed
physical therapists; the use
of a horse in physical therapy is called hippotherapy.
Other programs, referred
to as therapeutic or handicapped riding programs,
depend on volunteers.
Usually one person walks
on either side of the horse,
steadying the rider, while
another leads the horse.
Some riders are able to trot
and canter as well.
The horse must be sound
to move correctly to achieve
the therapeutic effect, and
older, quieter horses are
preferred.
Therapeutic riding programs
are offered through various
agencies and organizations.
A few are listed here:
Owner Joe Topper (left) trainer Julie McCutcheon and Mary Jane Roop of MidAtlantic Farm Credit visit
the new Breezy Hill Stables, which has a heated and air-conditioned lounge to serve the needs of the
terminally ill children who ride there.
• 4-H programs in
some areas
• Special Olympics
• North American Riding
for the Handicapped
Associations: narha.org
• Baltimore Horse Country:
www.bcpl.net/~gharris/
Some four-and-one-half miles of board fencing provide safe quarters for the horses at Breezy Hill Stables.
Using the 53-acre property for a horse farm keeps the rural character of the surrounding Thurmont area intact.
For a complete list of
therapeutic riding programs
throughout Delaware,
Maryland and Pennsylvania
visit our website at
mafc.com/ridingresources.html
mafc.com • Volume 11, Issue 1 •
11
Don’t
Drop the
Estate
Planning
Baton!
Gary J. Heim,
Attorney; Mette,
Evans & Woodside
Harrisburg
Pennsylvania
You’re not just updating your estate plan for yourself, you’re updating it for the next generation.
Part One
of a Two Part Series
E
state planning goes by
many names . . . succession planning, wealth
transfer planning, asset preservation planning . . . to name a few.
The term generally refers to the
inevitable process of transferring
one’s property at death or, in
some manner, during lifetime.
A sports analogy to the estate
planning process would be the
transfer of the baton in a relay
race. The long run around the
track is like the day-to-day operation of your farm over many
years. You can do that successfully, but lose significant business momentum or even the
farm business itself if the transfer is not done properly.
Whether you realize it or
not, each one of us has an
“estate plan.” Some of us have
12
• Volume 11, Issue 1 • mafc.com
prepared our own speciallytailored plan, while others are
using the “one-size-fits-all” plan
that each state has prepared
for each of its residents. These
“intestacy” laws direct how your
assets will be distributed in the
event of your death without a
will. The state’s estate plan is
not designed to reduce taxes or
to address your unique business
or family issues. Therefore, you
need to do your own estate
planning, and you need to
update that plan periodically.
How often should you update
your plan? A self-evaluation of
your estate plan should be part
of your annual financial health
checklist. If, through that annual
evaluation, you conclude that
there have been significant
changes within your family
(e.g. a divorce or a child leaving
or joining the business) or with
your financial affairs (e.g.
unusually strong increases in
real estate values, such as in
2005) or in the tax laws during
the past year, then contact a
member of your estate planning
team for assistance. That team
could include: an accountant,
an attorney, an extension service
representative, a financial advisor, an insurance agent, a loan
officer and a trust officer. Even if
the annual self-evaluation does
not require professional assistance, you should, nevertheless,
have your estate plan reviewed
every five to ten years by the
leader of your professional estate
planning team.
Whether you are updating
your estate plan for the first
time or repeating the process,
you need to start with a current
financial statement, based on a
realistic fair market value of
your property. Occasionally, a
third-party appraisal will be
appropriate at this stage, particularly for real estate values in a
development-pressured area.
Coming next issue: More
details about the estate planning process.
❖
Editor’s note: If you are in
the midst of estate planning and would like more
information, please
contact Donna Dawson
at 800.333.7950 or
[email protected].
We would be happy to send
you the rest of Mr. Heim’s
article prior to the publication of the next issue.
Estate planning can be a complicated process for individuals and families.
The information below summarizes what areas and steps need to be taken
as you begin the planning process.
Identify Your Goals:
1. A fair division of assets among family, friends and/or charities
2. Minimization of taxes
3. Reduction of financial exposure to nursing home/health care costs
4. A plan for family members or others to continue the family farm
5. Trust and guardianship arrangements for minor children
6. Financial protections for a family member with special needs
Estate Planning Update Process:
1. Identifying your estate planning team members
2. Developing property distribution plans
3. Deciding upon the proper timing for the distributions
4. Considering alternatives for dealing with taxes and nursing
home/health care costs
5. Addressing special issues for those receiving your property,
including the “four Ds”, i.e. the disability, divorce, death and
premature disposition/departure of the recipient
6. Identifying the documents to be prepared
Estate Planning Tips:
1. An out-of-date estate plan can be as ineffective as no plan at all
2. There are more tax-saving opportunities available to a couple than
there are to a widow(er), so do your planning when both are living
3. Use a team of professionals rather than just one adviser
4. Your tight cash flow may make you feel like a pauper, but the IRS, the
Medicaid agency, the disgruntled spouse and the departing business
partner could view you as a millionaire, so plan accordingly
5. The question is not whether a perfect and flawless plan can be tailored,
but whether a better plan can be implemented than the present plan
that you have
mafc.com • Volume 11, Issue 1 •
13
Progress on the Horizon
In 2006, the Farm Credit System will celebrate 90 years of pursuing its mission to maintain the quality
of life in rural America and on the farm by ensuring the availability of sound, dependable funding for
a variety of financial needs. Looking ahead to that historic milestone, the System last year undertook
an unprecedented System-wide initiative to fully assess the state of U.S. agriculture and rural America
and to evaluate the System’s ability to continue to fulfill its mission.
By Mike Mason,
Farm Credit
Council
A
lmost
every
aspect
of rural America has undergone
dramatic change in the years
since the Farm Credit System
was established. Today’s agricultural market is more diverse,
more complex and more con-
14
• Volume 11, Issue 1 • mafc.com
sumer-driven than ever before.
Recognizing this, the System
undertook the HORIZONS
project—a forward-looking
planning initiative that will help
the Farm Credit System meet
the changing needs of U.S.
agriculture and rural America.
A number of committees and
task forces comprised of more
than one hundred individuals
from across the System, nation-
wide, have participated in the
effort. The Farm Credit System,
with $117 billion in assets
and uniquely positioned as
a national network of locally
owned cooperative lending
associations and banks, is the
single largest lender to our
nation’s agricultural sector and
to rural communities. We view
our role as vital to the continued success of U.S. agriculture
and to the future vitality of our
nation’s rural communities and
our HORIZONS research provides substantial evidence to
support this.
To meet the demands of this
evolving economy, Farm Credit
institutions currently offer a
range of financial solutions and
programs to benefit all types of
agricultural producers, including
young, beginning and small
farmers, the businesses they rely
on, new markets, and the rural
infrastructure that supports them
all. However, as our research has
made clear, rural America cannot
fully benefit from Farm Credit’s
financial strength and expertise
because of limitations on the
System’s authorities.
Looking Forward
As rural America’s customerowned partners, the institutions
that make up the Farm Credit
System are currently reviewing
the HORIZONS findings and
proposed recommendations in
order to first, develop a consensus within the System about
what changes are required to
ensure that Farm Credit can
effectively and efficiently serve
rural America and second, to
take action to ensure that Farm
Credit is able to continue its
historic mission to serve agriculture and rural America.
It is important to point out
that our HORIZONS initiative
aims not only to foster consensus within the System, but also
to move forward in a spirit of
cooperation with those who are
not part of the System but who
have a vital interest in issues
affecting agriculture and rural
America. In providing capital to
rural America, Farm Credit may
be the largest lender but it is
certainly not the only lender,
and we will seek to build bridges
of support and understanding
between the many stakeholders
who also share our vision of
success for U.S. agriculture and
rural communities. We will seek
to unite rather than divide. After
all, our System is owned by the
agricultural producers themselves. Not only their businesses
but the communities they
call home are the focus of the
HORIZONS initiative.
❖
What We Found
Our HORIZONS research showed how globalization and technological advances
continue to drive change in the food system and in rural communities, which increasingly are dependent on nonagricultural and non-traditional industries. In addition,
interdependence among farmers and farmer-owned businesses continues to grow.
In short, access to capital to meet these needs will remain critical as agriculture and
rural America continue to grow and change in the future. The key finding of HORIZONS is that changes in agriculture and rural America demand novel financial solutions and strategies for a marketplace that is more diverse, complex, consumer-driven
than ever before. Here is a brief look at what was revealed through our research:
1. There is tremendous diversity in
size, annual revenue, ownership
structure and marketing approaches,
as well as in the age, ethnicity and
gender of the owners and operators
of today’s farms.
2. Farmers are diversifying their business interests both within and outside
agriculture. The overwhelming majority of all farmers, but especially smallsized operations, rely on off-farm
employment to stay in agriculture.
3. Farmers depend on a wide range
of businesses that may or may not
be owned by farmers, and they may
or may not be located in a rural
community, but all are essential to
the economic viability and quality
of life for farmers.
4. While the number of farmers, the
jobs in agriculture and agriculturally
related industries, and the number
of counties and communities that
rely on agriculture for their economic
well being have all declined, the
future of U.S. agriculture remains
bright. Future possibilities are
expanding, not contracting.
5. It is becoming increasingly difficult
to define a “rural” community solely
by population or traditional qualities.
6. Regional collaboration, public-private
partnerships and coalitions of investors
are key to the future of many rural
communities. To create new jobs,
attract new businesses and foster an
environment for future economic
development, agriculture and rural
America will need to find new ways
to reinvest farm real estate equity.
7. As skilled, experienced and innovative business owners, today’s rural
entrepreneurs, including farmers,
ranchers and producers alike, will
continue to need access to capital,
essential infrastructure, and business
support services for that entrepreneurial engine to continue to spur
rural economic growth.
8. The diverse farms, rural businesses
and rural communities of the 21st
century need ongoing access to
dependable, flexible and competitive
financial products and services to
compete and thrive in this global
and rapidly changing environment.
For more information on the Horizons project, please contact Sandy Wieber
([email protected]) at 800.333.7950. As our HORIZONS staff contact, she’ll
be more than happy to respond to your questions.
mafc.com • Volume 11, Issue 1 •
15
Looking atture
the Big Pic
D
By Sandy Wieber
o you want to learn more about the
HORIZONS project? Are you curious about what new initiatives your
cooperative has planned for 2006? Do you
want to see “the big picture?”
Then mark your calendars to join us
for an evening of good food, networking with your fellow members and great
presentations at our 2006 annual stockholder meetings.
And, if all of that isn’t enough to get you
to come out on a nice spring night, remember that you will also have the opportunity
to pick up your patronage check (and you
can get it days early...if you don’t pick up
your check during the meetings, you’ll
have to wait until we mail them out!)
Registration
We’ll open the doors at 6:15 each
night, which gives you 30 minutes of networking time before we call the meeting
to order at 6:45. If you’ve been to a meeting lately, you know that we try and wrap
things up fairly early—so you can be an
active participant in your cooperative, and
still get to bed on time!
In a few weeks, we’ll send our
annual information statement with
details about the meeting and more
information on the slate of candidates
for our annual elections.
Within that mailing, you’ll find an
RSVP card. Please fill it out and return
it as soon as you know your plans—that
helps us to make ours! Or, if you prefer
to save us the postage, you can just go
online and register—just log on to mafc.
com, and follow the link to annual meeting registration. You don’t even have to
go to the post office!
2006
Annual Meetings
Mark your calendar and plan to attend the meeting most convenient for you.
Date
Location
City/State
Monday, April 3
Modern Maturity Center
Dover, DE
Tuesday, April 4
The Fountains*
Salisbury, MD
Tuesday, April 11
Yoderí s Restaurant
New Holland, PA
Wednesday, April 12
Walkersville Fire Hall
Walkersville, MD
* New location
man, Bob
ard chair
MAFC bo
business
uring the
eetings.
Stabler, d
e 2005 m
th
f
o
n
io
port
Voting Overview
Voting will take place at each meeting location, with floor nominations accepted at
the first meeting (in Dover). If you cannot
attend an annual meeting, you will have the
opportunity to cast your ballot by mail. The
following schedule will be used for the mail
balloting process:
16
• Volume 11, Issue 1 • mafc.com
April 17
Ballots mailed to all
eligible stockholders
May 8
Polls close at end of day
May 9
Tellers committee
convenes to count ballots
May 10
Tellers committee
certifies election results
May 31
CEO sends notice of
election results to
stockholders
This voting procedure will allow those who
attend one of our meetings to vote that
evening, while allowing stockholders who
cannot attend a meeting to vote as well.
Remember—the chance to vote for your
nominating committee and board of directors is an important responsibility for each
stockholder—whether you can attend one
of the meetings or not.
land
ne Eng ryland
li
e
u
q
c
Ja
Ma
g Sun,
d
of Risin 05 Edgewoo
0
2
e
h
at t
g
meetin
Bob and Dorothy Getz
of Bath, Pennsylvania
meeting
at the 2005 Kutztown
Ann White resides in Cowpens, South
Speakers
We get some of the best
speakers in the business—
people that will have you
laughing days later. Don’t let
your neighbor be the only
one who has a good time—
make sure you hear these
folks personally!
Charlotte Bro
wn
of Federalsbu
rg, Maryland
at the 2005 D
over meeting
Carolina and will be speaking in Dover
and Salisbury. A former teacher, director of school and community relations
and assistant superintendent of human
resources, Ann left education in 1995 to
do the thing she loves best—speaking. Her
stories of growing up in the South combined with her
experiences in the workplace inspire audiences to run to
the next challenge. She is a member of numerous state
and national organizations including American Business
Women’s Association, National Speakers Association, and
the Carolinas Speakers Association.
Al Walker hails from South Carolina and will be speaking to the stock-
holders in New Holland and Walkersville. Al is nationally recognized for his
unique, fun-loving, humorous approach to speaking. He started his career
by working for a residential building and development corporation.
During this employment he attended Dale Carnegie course and decided
his future was in training and developing people. He joined the Dale
Carnegie organization and quickly become one of their top-rated instructors. In 1981, he started his own company. He was inducted into the Council of Peers Award
for Excellence Speakers Hall of Fame and has been awarded The Cavett Award at the National
Speakers Association (NSA) annual convention—the highest and most cherished award
presented for exceptional service to the association.
Properties for Sale
idAtlantic Farm
Credit is in the
business of making
dreams come true. So we
thought it would be only
appropriate if we listed some
dream properties for sale on
this page. Of course, if you’re
not in the market for a new
property, don’t forget that
we can help you improve the
property you have. Whether
you want to add an addition
to your house, or add fencing
or new facilities to your farm,
M
your first call should be to
Farm Credit. We’re here to
help—no matter how big or
how small your dreams are!
If you’re a Realtor, or selling a property in the area,
please contact Donna
Dawson at 800.333.7950
or [email protected] for
information on having your
property listed in this section
in the future. Properties will
be listed at the discretion of
The Leader’s editorial staff.
PENNSYLVANIA
116 acre preserved Lancaster County farm
PENNSYLVANIA
Beautiful preserved farm in West Hempfield Township,
Lancaster, Pennsylvania. Farm includes a stone farmhouse
with 4 bedrooms, several barns and silos and a spring fed
stream. Located between Lancaster and Harrisburg near
Routes 30 and 283. $1,999,000
Call Blaze L. Cambruzzi at High Associates, 717.209.4010.
Picturesque 12.6 acres in Ephrata,
Pennsylvania school district
PENNSYLVANIA
Modern 6 bedroom, 4 bath home with 3-car garage. Large
eat-in kitchen, dining room, music room, library, family room,
full basement and expandable full walk-up third floor. Bank
barn with storage, chicken house, 6-stall horse barn and
indoor riding arena. $1,200,000
Call Roger Kline at Kingsway Realty, 717.859.2001, Ext. 116.
MARYLAND
127 acre Kent County, Maryland farm
Close to Chestertown, perc approved with two open-faced
modern cattle sheds plus one large modern machinery/hay
storage shed. Completely fenced with high tensile wire. Large
waterfowl pond. $1,350,000
Call Billy Norris at Select Land and Homes, 410.708.0956.
MidAtlantic Farm Credit is not responsible for content or
typographical errors. For more information on any of the
properties listed above, please call the Realtor listed.
18
• Volume 11, Issue 1 • mafc.com
Executive Estate in Pequea, Pennsylvania
Historic property dating back to the early 1800s, has been
professionally refurbished to include all the modern amenities
needed to make this a dream home. Property contains 22.68
acres, adjoining acreage can also be purchased. Features:
custom cabinetry, all modern appliances, jaccuzi/whirlpool tub,
central vacuum, central air, 3-car oversized garage. $1,275,000
Call Bob Porterfield at Century 21 Lipka Group, 717.786.9999.
MidAtlantic Farm Credit, ACA
J. Robert Frazee, CEO
MidAtlantic Farm Credit
Board of Directors
Robert N. Stabler
Chairman
Dale J. Ockels
Vice Chairman
Paul D. Baumgardner
Gary L. Grossnickle
John J. Hastings
Dale R. Hershey
Duane E. Hess
Walter C. Hopkins
Wilmer L. Hostetter
M. Wayne Lambertson
Howard A. McHenry
Fred R. Moore Jr.
D. Wheatley Neal
Ralph L. Robertson
Mervin Sauder
Douglas D. Scott
Lingan T. Spicer
Leon A. Stoltzfus
Rodger L. Wagner
Fred N. West
Volume 11, Issue 1
A
P U B L I C A T I O N
O F
M I D A T L A N T I C
F A R M
C R E D I T
LEADER
Published quarterly for stockholders, friends and business associates.
The Farm Credit
Administration does
not require the association to distribute
its quarterly financial
reports to shareholders. However, copies
of its complete
report are available
upon request.
The shareholders’
investment in the
association is materially affected by the
financial condition
and results of operations of AgFirst
Farm Credit Bank
and copies of its
quarterly financial
report are available
upon request
by writing:
Jay Wise
AgFirst
Farm Credit Bank
P.O. Box 1499
Columbia, SC
29202-1499
Address changes,
questions or requests
for the association’s
quarterly financial
report should be
directed to:
MidAtlantic
Farm Credit, ACA
by calling
800.333.7950
or writing
MidAtlantic
Farm Credit
P.O. Box 770
Westminster, MD
21158-0770
Questions or Ideas If you have any questions or ideas for the editorial
staff of The Leader, contact Donna Dawson at 800.333.7950, e-mail
her at [email protected] or write her at MidAtlantic Farm Credit,
680 Robert Fulton Highway, Quarryville, PA 17566. This publication is
for you, our reader. We’d love to hear from you!
MidAtlantic Farm Credit
P.O. Box 770
Westminster MD 21158-0770
PRSRT STD
U.S. POSTAGE
PAID
BALTIMORE MD
PERMIT NO. 7175
Hay There, Neighbor!
We know this is the perfect
time of year to put on an extra
blanket and hunker down
until the weather gets better.
While you’re cocooning, we
invite you to read about your
cooperative’s news in this
issue of The Leader.
Leading the Way