GreenStone Farm Credit Services is pleased to announce the release of its 2024 annual report themed “Strength in Partnership.” The report details the growth, resilience, and strength of the relationships the cooperative fosters with its member-owners.
Included in the report are several milestones, including a record year for net income at $297 million, the second consecutive year of a 96% customer satisfaction, and another $120 million returned to GreenStone’s members in the form of Patronage marking over $1 billion total returned over the past 20 years.
In addition to the solid financials, under the theme “Strength in Partnership,” the report shares the stories of a longtime member and dairy farmer who has received Patronage returns for all 20 years of the program, as well as a second-time home construction customer with GreenStone as he sets out to build his family’s forever home.
GreenStone’s partnership with its members is built on strong relationships, which is highlighted through a story of GreenStone’s Hart branch sharing their dedication to the success of their customers.
“We are thrilled to report a number of milestones this year, underscoring the strength of our cooperative system and the valuable relationships we have with our members,” said CEO and President Travis Jones. “Our team prioritizes maintaining an open line of communication with our customers so we can continue to provide our members with solutions tailored uniquely to them.”
GreenStone’s return on assets reached 2.2% as a result of its record-breaking net income, and its loan portfolio showed solid growth in 2024. The cooperative’s credit quality also remained strong. This continued performance is a testament to the success of GreenStone’s members over the past year.
Other financial highlights in this year’s report include:
- Net Income: $297 million
- Total Assets: over $15 billion
- Total Loan Growth: 5.9%
- Patronage Paid: $120 million
“The strength of our partnership with our members propels us forward, as our customers remain resilient despite experiencing rising inflation, interest rates, and overall higher input costs,” said Executive VP and Chief Financial Officer Kim Brunner. “We are committed to continuing to grow alongside our members.”
The full 2024 Annual Report can be viewed here.
While many of his peers are choosing a college or corporate career path – Elijah Wackler opted to go all in on his dreams with hands-on experience. Nestled in Oakland County with limited space, Elijah says, “I am trying to learn the different areas of agriculture like a trade.”
Growing up in an urban area there was a limited amount of opportunities to learn about agriculture. In eighth grade he decided to get involved with a local 4-H club that became available. He began exhibiting educational displays such as Plant Science, and Wildlife Studies, among other divisions at the county fair and got deeply involved with his local 4-H community – this experience encouraged him to continue to explore the different avenues that the agriculture industry offers and where his dream began to flourish!
Currently Elijah works for a Christmas tree farm and a local nonprofit organization that focuses on agricultural education. In his free time, he is getting creative with different types of hobby micro farming. Micro farming is taking agriculture to the smaller scale providing an ample opportunity to have fresh food without a plot of land. He noted, “It is very different, working with raised beds and pots instead of just planting into soil.” For his micro farm, Elijah focuses on trying different practices with a variety of plants to see what could work well in the future.
While gaining experience and looking for more ways to expand his knowledge Elijah applied for GreenStone’s CultivateGrowth Grant. This grant allowed him to find an online or in-person educational course he was interested in! The CultivateGrowth grant can be used by a young, beginning, or small farmer who lives in Michigan or northeast Wisconsin for an agriculture program/event anywhere. Elijah used his grant to take an online u-cut flower course through Floret Flower Farms out of Washington.
This course was a perfect fit for what he was looking for as it allowed him to keep course content forever, highlighted how expansive the floral industry is, and gave real examples of how to have a u-cut flower operation. Elijah hopes to build on this knowledge as he builds his dream of owning an agritourism operation focused on flowers, pumpkins, apples, and Christmas trees! While the agriculture industry is expansive, he is taking every opportunity to dive deeper in order to reach his goals.
It started as a dream to own a Christmas tree farm and has since expanded into so much more. This course is just the start for Elijah, and the possibilities are endless as he continues to pursue his passion in agriculture. GreenStone aims to provide opportunities for all young, beginning, and small farmers with our CultivateGrowth grant. To learn more about our CultivateGrowth grant program, click here.
As we consider our outstanding results of 2024 and the progress that has set the road map for the future, we are grateful for the trust and partnership our members place in GreenStone. Together, we navigate the opportunities and challenges because it is a joint commitment and focus that drives our cooperative. Our commitment to serving you is at the heart of what makes this cooperative beat strong.
Recognizing the Strength of Partnership in 2024
This past year marked another milestone for GreenStone. We are proud to share 2024 was a record year, with net-income reaching $297 million resulting in a strong return on assets of 2.2%. We continue to be one of the most efficient stewards of capital in the Farm Credit system. In addition, Credit quality of the portfolio is another measure that we watch closely, and we are pleased to end the year well positioned to support our customers in whatever may lie ahead. These achievements underscore the trust our customers have in us and position us with the financial stability to support your success in the future.
Beyond the financial numbers are the people at the heart of what we do – our members and our employees. We are very proud our customers are 96% satisfied with GreenStone, 74% of them being very satisfied. That result is a multi-year trend which tells us our people – our employees – are living our CoreFour values every day. Our success is tied to the success of our members, and our team is here helping them evaluate options, realize dreams, and emerge even stronger. A particular highlight is our Hart branch team, noted later in this publication, which achieved a remarkable milestone of 100% customer satisfaction for the third consecutive year. (We have nine other branches that were able to achieve a 100% score in 2024!) As you’ll also read in a member story on the next pages, this achievement reflects the dedication and commitment of our employees, who embody GreenStone’s relationship-based values in every interaction.
Celebrating the Power of Partnership through Patronage
We mentioned a year of strong results and milestones, and we’re excited to celebrate an extraordinary one with our Patronage program putting more than $1 billion dollars back in our members hands – $1 BILLION! 2024’s strong financial results allowed the cooperative to again return $120 million of our net profits back to our members, resulting in $1.08 billion being returned over the 20 years of the Patronage program.
Personal relationships and partnerships with our members define GreenStone. They are what make this partnership pay, not just in dividends but in the shared journey of building thriving businesses and strong communities. It’s the result of a million conversations and dreams, the handshakes and smiles shared, and the relationships built that we’ve been lucky enough to be a part of for over a century. Just like the one you’ll read about in this annual report, a longstanding Wisconsin member who has realized the benefit of partnership on his farm all 20 years of Patronage returns. The ability to give back through Patronage is a direct result of your success and the trust you place in us. Together, we have created a legacy of growth and resilience.
Benefiting through Partnership with our Communities
Beyond providing credit and financial services, GreenStone remains deeply connected the communities we serve. In 2024, our outreach efforts included thousands of volunteer hours, significant financial contributions, and partnerships with numerous organizations as highlighted in the coming pages. Through these efforts, we provide resources, training, and support that empower our customers to navigate economic cycles and business challenges successfully; engage our youth and teach skills as the foundation for our future leaders, neighbors and customers; offer specialized programs, flexible financial solutions, and tailored guidance designed to help young, beginning and small farmers establish and grow their operations; and partner in our communities to build the programs to strengthen our vital rural communities.
Preserving Partnerships for the Future
As we move through 2025 and beyond, we are mindful of the cyclical nature of the economy. While profitability may become more challenging for some, opportunities remain, including our opportunity to strengthen relationships with customers and help them navigate the challenges, just as we have before. With proactive and transparent communication, the cooperative’s strong financial base and proven experience has us prepared to help customers make informed decisions. Partnership with our cooperative is about more than a loan or service, it’s about a relationship and commitment that stands strong today and for the days to come!
The full 2024 Annual Report can be viewed here.
At GreenStone, our passion for supporting our rural communities runs deep – they’re where we live, work, and play too! Our commitment to watching local farmers, families, and industry organizations remain strong and resilient, can be seen in the partnerships and collaborations we participate in year-round. We partner with countless organizations who are dedicated to seeing the ongoing success of agriculture. A few of those partnerships and organizations include both Michigan Farm Bureau and Wisconsin Farm Bureau, Brown County Dairy Promotion’s “Breakfast on the Farm”, and numerous Michigan State University Extension Programs. Whether it be to support young, beginning or small farmers, multi-generational farms, or the next generation, all provide unique partnership opportunities for education, resources, engagement, and support, making an impact on our rural communities.
GreenStone is proud to support the future of agriculture through our partnership with Michigan Farm Bureau and Wisconsin Farm Bureau. With members across both states and a mission to promote the advancement of agriculture, Michigan and Wisconsin Farm Bureaus understand the resilience required of young, beginning, and small farmers to navigate today’s agricultural landscape, and provide support through a wide variety of educational resources and programs.
Our commitment to supporting the next generation of agriculturists starts with providing education to communities and our local youth. Through our partnership with Brown County Dairy Promotions in Wisconsin, GreenStone is proud to sponsor their annual Breakfast on the Fam event, which provides an opportunity for families to tour a local farm, learn more about where their food comes from, and enjoy a tasty breakfast of course! Each year the Breakfast on the Farm event is hosted by a different Wisconsin farm family which provides a unique experience for participants to learn how different farms operate. Establishing a connection to agriculture at an early age is paramount to educating our youth and supporting the next generation of farmers or agribusiness owners!
Yet another way GreenStone remains committed to supporting the resilience of the agriculture industry is through our partnership with Michigan State University’s Extension (MSUE) Programs. Designed to bring vast knowledge and resources directly to individuals, communities, and businesses, the MSUE programs cover a wide variety of topics such as agriculture, businesses, food and health, natural resources, and more. Our partnership with MSUE continues to provide updated education and resources to the farmers and agribusinesses who need them.
At GreenStone, we recognize if we want to help build strong and resilient communities, it starts with contributing our own time and talents. Each year, GreenStone team members across our locations participate in events and organizations that enhance their local communities. In 2024, we proudly contributed over 8,900 hours and $1.2 million in financial support. This time spent includes participation in youth educational events; agriculture-advocation and producer education; young, beginning and small farmer resources; and support for our rural communicates; totaling over one whole year’s worth of time volunteering to create more resilient communities!
GreenStone is dedicated to making a meaningful impact through education as well. In 2024, we awarded $60,000 in scholarships to students pursuing careers in agriculture. This brings our total scholarship contributions since 2010 to over $500,000. By investing in the education of future agricultural leaders, we’re not only supporting individual aspirations but also ensuring the sustainability and growth of our communities and the agricultural industry.
Throughout the year, GreenStone has prioritized resilience in our outreach initiatives. By partnering with organizations focused on community and industry advancement, we are investing in a more sustainable future for the agriculture industry. Through our collaboration we are not only supporting our rural communities but also empowering the next generation of farmers to thrive in an ever-evolving landscape.
The full 2024 Annual Report can be viewed here.
In the small town of Hart, Michigan, you’ll find a GreenStone team with a whole lot of heart for the community they serve. Although there may be only five members of our GreenStone team based in our Hart branch, it’s clear each of them has a real passion for supporting the livelihoods of those in their rural community.
The remote town of Hart, Michigan has a population of just over 2,000 people and is nestled on the west side of the state along the shores of Hart Lake, and just miles from Lake Michigan. Home of the National Asparagus Festival, Hart is located within Oceana County, which is the Asparagus Capital of the World. Crops such as corn, soybeans, cherries, vegetables, and hay are also predominant in the area.
Despite what you may consider a smaller team; the Hart branch has achieved a large feat when it comes to the relationships they have with their customers. Every year, GreenStone sends out an annual customer satisfaction survey to its members asking for feedback on their experience working with GreenStone as a whole and its individual branches. In 2024, the Hart branch demonstrated resilience in the face of challenges by achieving a 100% customer satisfaction score three years in a row.
The team’s values are reflected in this score as all five members of the team were adamant the customers they serve on a regular basis were the reason why they loved their job so much. “We’re very familiar with the people we serve and look forward to seeing them regularly,” says Loan Processor Charity Neinhuis. “Growing up in this community, and as someone who has family in agriculture, I know how important the services we are providing are, and how much local farmers rely on us. It’s something that’s close to my heart, and we treat our customers like family, because that’s what they are to us.”
Kayla Beckholt, who is also a Loan Processor at the Hart branch, shared her reason for why they’ve been able to establish strong relationships with their members. “The atmosphere at the Hart branch is why we’re able to establish such great connections with our customers and really get to know them. A lot of our customers prefer to come into the branch to make their payments or have a conversation with one of us, and I think that in-person interaction is a big part of why we’ve achieved 100% customer satisfaction.”
Senior Financial Services Officer Devon Feldpausch also shared his thoughts on why the branch has maintained a high rating of customer satisfaction. “The unique part of working in a smaller branch is the support we provide for each other in addition to our customers. There are times when we lean on each other and help each other in order to make something happen. We all have learned a lot that way, and I think it just goes to show what we’ll do to go the extra mile for our customers.”
Devon has led by example time and time again when it comes to going above and beyond for our customers. Check out the story here learn more about the relationship he’s built with GreenStone customer Kol Gjokaj throughout his recent home construction project.
Another testament to what makes the Hart branch special? Just ask Senior Financial Services Officer Kimberly Sadler, who has worked there for the past 17 years. “Throughout my time here I have really gotten to know our customers, what their goals are and what they’re working towards. They are resilient and continually meet challenges head on. Being able to support them and play a small role in helping them achieve their goals is very fulfilling to me.”
The Hart team demonstrates GreenStone’s CoreFour Values of putting customers first and getting involved in their rural community in everything they do. One thing is for certain, what they may lack in the size of their team, they make up for tenfold times in heart.
The full 2024 Annual Report can be viewed here.
In the face of challenges, resilience and strength shine through stories like Kol Gjokaj’s. As a GreenStone customer, Kol exemplifies what it means to persevere while building not one, but two homes for his growing family—all with GreenStone’s experience and support.
Kol’s journey with GreenStone began more than five years ago at the age of 30 when he sought financing for his first construction project. Referred by a lumberyard, Kol connected with GreenStone Senior Financial Services Officer Devon Feldpausch, and an instant connection was formed. Despite living on opposite sides of Michigan, Kol chose to work with Devon, a decision he says has made all the difference.
“Devon has been there for me around the clock, even taking my calls on weekends and after hours,” Kol shared. “I don’t know how many people would do that. His commitment to helping me and this project succeed and how he genuinely cares make him stand out.”
Kol’s first project—a two-level, four-bedroom home—was a learning experience. As a first-time home builder and serving as his own general contractor, he relied heavily on Devon’s guidance for his do-it-yourself construction project. From securing a land loan to navigating the construction financing process, GreenStone provided Kol with a step-by-step checklist and advice that eased his concerns.
“Building your own home can feel overwhelming, but GreenStone made it manageable,” Kol explained. “The checklist they provided detailing the home construction process really put my mind at ease. It’s more than just a mortgage—they truly care about helping you succeed.”
After completing his first home, Kol and his wife, Katie, who have been together for over 15 years, welcomed two children: Luke, now 3, and Emma, who will celebrate her first birthday this spring. As their family grew, so did their needs. Kol sold their first home and purchased 15 acres of land—double the size of his previous property—for their next chapter. This time, they’re building a ranch-style home better suited for their family’s lifestyle.
“Designing our own floor plan has been an incredible experience,” Kol said. “We’re thinking about every detail, from the kids’ rooms to play areas and hallways. It’s amazing to create a space tailored to your family’s needs.”
Kol’s resilience is evident in his approach to construction. Acting as his own contractor again, he juggles his full-time job in the auto industry, family responsibilities and the complexities of home building. Devon, impressed by Kol’s organization and determination, describes him as one of the best do-it-yourself builders with whom he’s worked.
“Kol is incredibly organized and knowledgeable,” Devon said. “Balancing work, family and construction is no small feat, but he makes it look easy. It’s a testament to his strength and dedication.”
For Kol, GreenStone’s efficiency and support have been pivotal. Despite the complexities of construction loans, to him the process has been as seamless as a traditional home mortgage.
“You’d think it would be overwhelming, but it’s not,” Kol said. “GreenStone’s ability to process construction loans quickly and efficiently is impressive. I know whenever I have a question or need to ask Devon for anything, he’s there to help.”
Kol’s story is one of resilience, strength and partnership. His journey with GreenStone showcases how the cooperative goes beyond providing loans—it empowers its customers to build their dreams, even in uncertain or challenging times.
“A 30-year-old can go out and build their own house for their family—that’s incredible,” Kol said. “GreenStone shows their customers they care, and I can’t stress enough how great Devon has been.”
As Kol and his family embark on their second construction project, they do so with confidence, knowing GreenStone is with them every step of the way.
The full 2024 Annual Report can be viewed here.
For Paul Cornette, farming has always been more than a livelihood—it’s a family legacy. As a multi-generational farmer and owner of Cornette Dairy in Luxemburg, Wisconsin, Paul knows what it means to be resilient while carrying on a family tradition that began decades ago with his parents, Jim and Barb. Since returning to the family operation in 2007, Paul has overseen significant growth and innovation, while relying on GreenStone Farm Credit Services as a trusted financial partner every step of the way.
The Cornette family’s relationship with GreenStone stretches back to 1980, when Paul’s father first began working with the Farm Credit association. Over the years, that relationship deepened, with GreenStone supporting the family through various milestones—from rebuilding their farm after a devastating fire in 1995 to expanding their operations in recent decades. In 2006, when GreenStone launched its Patronage Program that returns a portion of its profits to its member-owners annually, Cornette Dairy was among the first to benefit. For all 20 years of the program, Paul has received annual Patronage checks, and the impact has been substantial.
“When I first came back to the farm, the Patronage check felt like a nice spring bonus,” Paul recalled. “It was something we could use to pad the checkbook and reinvest where needed. But as the farm grew, and we took on more responsibilities, those checks became even more significant.”
That growth has been remarkable. After Paul and his brother, Tom, purchased the farm from their parents in 2014, they expanded operations again in 2016 by installing five robotic milkers and building a new barn. Today, Cornette Dairy milks 360 cows and farms nearly 1,000 acres, growing much of their own feed. These advancements required significant investment, and GreenStone was there to provide the support they needed.
“The Patronage checks come in the spring, which is the perfect time of year,” Paul explained. “It allows us to prepay for crop inputs like seed and fertilizer, which helps us save money. Other years, it’s gone toward updating equipment or making repairs. It’s been a real financial boost, especially as we’ve carried more debt through expansions.”
GreenStone has provided more than just financial benefits. Over the years, Cornette Dairy has tapped into a range of GreenStone services, including bookkeeping, tax preparation, crop insurance and dairy revenue protection. Paul credits GreenStone’s team for its expertise and dedication to helping his operation succeed.
“We’ve worked with a lot of great people at GreenStone,” said Paul. “They bring real value to the table by helping us make informed decisions. Whether it’s planning for a new barn or navigating crop insurance, they’ve always had our back.”
Paul’s relationship with GreenStone’s VP of Lending Antonia (Toni) Sorenson exemplifies this strong partnership. Paul and Toni have known each other since their college days, and their professional collaboration has continued to grow over the years.
“Paul’s commitment to his farm and his family’s legacy is inspiring,” says Toni. “It’s been a privilege to support him as he’s grown his family’s farm and incorporated new technologies like robotic milking. Watching our customers succeed is one of the best parts of my job.”
For Paul, GreenStone’s cooperative model has been a key factor in his continued loyalty.
“The fact that we’re part of a cooperative that shares its success with us—it makes a big difference,” he said. “GreenStone has been there through the ups and downs, and that consistency means a lot.”
Looking back, Paul reflects on the journey that brought Cornette Dairy to where it is today. From his father’s purchase of the farmstead in 1972 to the expansions that have propelled the operation into the future, one thing remains constant: the value of strong partnerships.
As Cornette Dairy celebrates with all GreenStone members the two decades of receiving Patronage payments, Paul remains optimistic about the future. With GreenStone by his side, he knows his family farm is well-positioned to continue thriving for years to come.
The full 2024 Annual Report can be viewed here.
You’ve made the decision to build your home. Now it’s time for all the decisions that come with the home construction process. From the overall architectural structure down to the knobs on your kitchen cabinets, and everything in between, there’s a lot to think about! Who will be with you every step of the way throughout the building process?
At GreenStone, we specialize in both fully contracted and DIY construction loans, where you have the ability to act as your own general contractor. If you’ve decided to go the fully contracted route, here are the most important questions to ask when choosing a builder.
Who do you know already?
Although you can always ask friends and family for their recommendations when selecting a builder, don’t hesitate to do more research as well. When looking into how to find home builders, ask yourself what style of homes you admire and take note of what’s being built in your area. Don’t be afraid to ask people in person, on your community message boards, and in your neighborhood who they would recommend for a builder as well. If you keep hearing the same names repeatedly, take the time to do a little research and see how they’re conducting their business. Once you do contact someone, you can always ask for references.
What style of home do you want?
If you have a particular type of home in mind such as a ranch, two story, full, partial, or walk out basement, you’re going to want to work with someone who has experience with that style of home.
After researching, you’ll find out what your builder specializes in. All builders should be comfortable with you touring homes they’ve built in the past. You can really get a feel for the house and the builder once you’re standing inside one looking at the bones of the structural support, quality of craftmanship in the trim, and special touches in the finishes being used.
How much does the builder cost?
There’s no point in getting too invested until you’re sure your budget aligns with the cost of your builder’s services. Some builders specialize in starter or first-time buyer homes, some in mid-range pricing, and some in the high-end price point. Target a builder who specializes in the same kind of project you are looking for. Plus, you should work with them on a warranty that also makes sense for you.
Is the builder properly licensed and insured?
Before selecting who you want to hire to build your home, it’s very important to make sure they are properly licensed and insured. Many reputable home builders will voluntarily provide their license and insurance information as a part of their initial consultation or proposal. However, if the builder you are considering working with does not give you this information right off the bat, don’t hesitate to ask for it.
A few examples of what to ask your potential builder to include:
- A builder’s license, to show they are legally authorized to build homes in your area.
- General liability insurance to cover any potential accidents or damage to your property that may occur on the job site during the construction process.
- Worker’s compensation or subcontractor insurance to cover medical expenses of the builder’s employees or other subcontractors if they are injured on the job site.
- Any home warranty the builder may offer to cover repairs and defects after the home is built, and the length of the warranty.
What kind of working relationship fits your needs?
Consider if you are the kind of person who wants to be on site talking things over with the builder, maybe even getting your hands dirty, or would you prefer a hands-off approach? Based on your answer, you’ll know how to proceed with the builder and if you want to fully contract out the home, act as your own general contractor, or something in between.
You are also going to want someone who you’re comfortable with, so discuss these items with your builder up front to be on the same page before the building process starts. Overall, the right builder for you will bring your vision to life, within your budget, and deliver the quality of service you’re expecting. Choosing the right builder is a big step forward in creating and moving into the home you’ve always dreamed of!
Don’t hesitate to reach out to your local GreenStone branch, our team would be more than happy to answer any questions you may have!
Tax season is in full swing! At GreenStone our tax and accounting interns have the unique opportunity to pursue their passions while getting hands-on tax experience in a seasonal role from December to April.
Our 10 tax and accounting interns have been spending their time looking over customers’ income and expense documents. Day-to-day they help complete tax returns for clients as well as prepare 1099s and W-2s. Our interns work directly with our tax accountants, assisting in any other related duties that may arise. At GreenStone, these students are gaining exposure to professional projects and experiences that align with their career goals.
Meet this year’s interns below!
Valeria Camarillo
College: Hope College
Major: Public Accounting, Minor: Spanish
What drew you to intern with GreenStone: “My interest in learning more about agriculture drew me to GreenStone. This interest sparked after meeting an incredible family of Latino farmers in Michigan that demonstrate a strong work ethic and true passion for what they do. As a college student pursuing a career in accounting, I thought that this would be the perfect internship to apply for.”
Ingrid Cruz
College: Grand Rapids Community College
Major: Accounting
What drew you to intern with GreenStone: “This is my second year at GreenStone, what drew me back is Shawn wanting me to help her again. Working with numbers makes me happy, especially with the positive environment at GreenStone.”
Dylan Carper
College: Western Michigan University
Major: Finance
What drew you to intern with GreenStone: “Being able to stay local and close to home and to be able to jumpstart my career at a great and well-known place.”
Kylie Spicer
College: Central Michigan University
Major: Accounting, Minor: Information Systems
What drew you to intern with GreenStone: “Working with farmers.”
Brian Lapetina
College: Western Michigan University
Major: Accounting
What drew you to intern with GreenStone: “I previously had another internship here, and I wanted to learn more about the tax code and agriculture.”
Joe Novelli
College: Grand Valley State University
Major: Accounting; Marketing
What drew you to intern with GreenStone: “I met someone at a job fair and have the opportunity to learn new systems.”
Haiming Gao
College: Western Michigan University
Major: Accounting
What drew you to intern with GreenStone: “It could help me better understand my career and pursue an interest in agriculture.”
Dayna Vander Heiden
College: University of Wisconsin-Oshkosh
Major: Accounting; Finance
What drew you to intern with GreenStone: “GreenStone’s drive to help their local farming community.”
Nolan Stump
College: Central Michigan University
Major: Accounting
What drew you to intern with GreenStone: “Learning how accounting is used within agriculture.”
Michael Wahl II
College: Mid-Michigan Community College
Major: Accounting
What drew you to intern with GreenStone: “A chance to expand upon my resume and gain real world experience.”
We may be well past the time of year to make New Year’s resolutions, but it’s never too late to make goals for the year ahead, especially when it comes to improving your record keeping practices!
For those of you that are not fully utilizing accounting reports to guide your farming operation – I challenge you to make it one of your goals for your operation this year.
Up to date records allow you to:
- Manage your business operation effectively,
- Manage your tax liabilities effectively (and with less stress)
- Make family living budget decisions more easily
Accurate and up-to-date records also demonstrates your commitment to knowing your numbers and providing accurate historical results, which lenders and other capital providers appreciate because it allows them to produce lending decisions in a quick and seamless manner.
It’s no fun scrambling around at the end of the year catching up on your record keeping trying to find out what you need to buy for inputs or equipment to minimize tax liabilities. Keeping your accounting up to date throughout the year allows you more time to plan and shop for the best prices on any necessary purchases.
In addition to completing your accounting in a timely and routine manner throughout 2025, you should also complete a budget for the upcoming year. Now is a great time to take financial measure of how your farming operation ended the previous year and to also establish your goals for the new calendar year.
A detailed and realistic budget is one of the most important tools for guiding your farming operation and providing the information necessary to operate within your means, handle upcoming challenges, and hopefully record profitable results. Throughout the course of the year, you should continually refer to your farm’s budget as a way of measuring performance against expectations.
How can you know what’s possible financially in the future if you don’t understand the historical results you’ve posted? The first step in the budgeting process is to make sure you know where your money has gone historically. Know your historical results!
A budget is a planning tool necessary for building a framework for your farming operation and its finances. A budget combines past trends with realistic forecasts for the upcoming year and provides a detailed view of realistic revenue expectations and how those stack up against your anticipated expenses.
Budgets also help with setting goals and establishing priorities. Like any business, farmers should, at a minimum, look at their total farm operation each year and establish goals for the upcoming year based upon their preliminary assessment of what could happen.
Goals should also be established for the upcoming year. Review expenses line by line, including the reasons and rationale behind any expected change in your cost structure. Will expense line items increase by cost-of-living adjustments or much more due to inflation? Are you going to outsource less custom hire work? Do your rent agreements have escalations in the current year? Does ground that you have rented each year no longer make sense given where commodity prices are at today and projected through the rest of the year?
Occasionally, farms will complete their budgets with multiple scenarios – worst-case, most likely, and best-case models are all frequently used. This helps farmers to mentally prepare for contingencies and identifying potential changes from initial expectations.
For example, assume a budget accounts for $4.15 corn and $10.00 soybeans. What if, in the middle of the year, soybean prices have dropped drastically, and you now expect that your sales price per bushel will be $9.00?
How would that affect your operation’s break-even price for your expected corn production?
You now need to sell your corn for $4.77 to break even. Is that possible — if so, do you sell it all when you see that price available? A portion of it? If not possible – where are you at to budget on other financial statement line items? Do you need to cut expenses elsewhere? Tighten the family living belt?
You are only able to answer these questions and make educated decisions if you understand your numbers and are up to date on your record keeping — tracking actual revenue and expenses and comparing them to what was budgeted. This helps to ensure that your farm is sticking to its plans. Budgeting also offers an important means of identifying problems and opportunities.
If you are interested in learning more about anything you read within this article, contact your CPA or a local GreenStone branch. GreenStone offers a full array of tax, accounting, and payroll services for farmers and agribusinesses.
This article was originally published in Michigan Farm News.