Submitted by Victoria Carini, Organic Blueberries LLC

Crust:

• 2 cups graham cracker crumbs (16 crackers)
• 1/3 cup sugar
• 4 Tbsp melted butter

Mix crumbs with sugar and melted butter.

Butter 9-inch springform pan.

Press mixture on the bottom and sides of the pan.

Refrigerate.

Filling:

• 1 ¼ lbs softened cream cheese
• 1 cup sugar
• 4 eggs
• 1 tsp vanilla

Mix cream cheese, sugar, eggs and vanilla in a bowl.

Beat until smooth and light.

Pour over crust. 

Bake at 375 for 50 minutes.

Top Layer:

• 8 ounces sour cream
• 2 Tablespoons sugar
• 1 teaspoon vanilla 

Beat together sour cream, sugar and vanilla

Spread over the top of baked contents

Bake 10 minutes more.

Test doneness use the toothpick method. 

Cool at room temperature and refrigerate. 

Top with blueberry glaze when ready to serve.

Blueberry Topping Glaze for Cheesecake

• 1 pt (2 cup) Fresh or frozen organic blueberries, rinse and drain.
• 1 tsp cinnamon
• ½ cup water
• 2 Tablespoon cornstarch
• 1 Tablespoon lemon juice

Combine sugar, cornstarch and cinnamon in a saucepan, mixing well. 

Crush 1 cup of blueberries, add to the mixture with ½ cup water. 

Bring to a boil until thickened, add the other half of the blueberries and lemon juice. Cool for 30 minutes. 

Spread over cheesecake.

Serve and enjoy!

 

To view the article in the online 2023 Fall Partners Magazine, click here.

Ryan Schomaker had a dream – to purchase his grandmother’s farm in Thomas Township, Michigan and raise a family in the farmhouse adjacent to the property.   

When that home was not available for purchase, Ryan and his wife Taylor decided to take matters into their own hands and build a brand-new home on the farm property. In 2019, they turned the key, walked into their new home, and never looked back – but it took a lot of work to get to that point.

Six Months of Dedication

After purchasing the family farm in 2018, Ryan and Taylor were determined to build a home as quickly as possible so they could give their full attention to farming. They met with GreenStone Financial Services Officer Anthony Pegley who helped them secure the financing they needed to break ground and begin work on the farm. Sensing their passion to farm and give back to the community, Anthony was excited to help them make this dream a reality.

“Our purpose here is to help people pursue their passions and their dreams, and that’s the best part of the job,” said Anthony. “Ryan and Taylor are excellent people. They’re great for the community, very ambitious, and I don’t have enough nice things to say about them.”

“The application was very simple, being first-time home buyers,” said Taylor. “We went in, sat down with Anthony, and it was a very positive experience for us.”

Later that year, the two worked with an architect on the floor plan and were able to start their self-build. Living out of a camper on the property, they worked long hours outside of Ryan’s full-time job as a lineman to get their home completed. 

“We would work on the house until two in the morning, and then I would get up a few hours later at six for work,” Ryan explained. 

Ryan and Taylor not only spent long hours doing physical labor like laying flooring, but also researching and learning how to complete certain projects. Building a home was a whole new ballgame for them.

“We had a house before and did some basic remodel stuff, but that was it,” said Ryan. “If you watched us tackle this, you’d notice we don’t build houses every day.

“I grew up in the building industry, but neither one of us had done anything more than simple home repairs before,” said Taylor. 

 

Home Sweet Home

Six months later, a beautiful three-bedroom home with an attached garage sat at the front of the 40-acre farm ready for Ryan and Taylor to make memories in.

Moving in to the home they spent countless hours building and perfecting was a reward of a lifetime.

“It feels good to be in the home we spent to many hours making,” said Ryan. “It’s sweat equity.”

“Building it from the ground up like that is awesome because you know all of the nooks and crannies of the house,” said Taylor. 

The home is equipped with an open floor plan, sliding wood doors, custom cabinetry, white oak floors, a stone fireplace and a black walnut staircase – just to name a few features. It’s the perfect place to raise their one-and-a-half-year-old son, Bennett. 

“The fact that we built it ourselves makes it even more of a homestead,” Taylor remarked.

For Anthony, seeing the final product is one of the best parts of the experience. 

“They’ve been great to work with throughout the process,” said Anthony. “They built a beautiful house, and it was great to watch it go up and see them move in.”

Trailblazers in Agriculture

Not only is the 2,000-square foot home the perfect place to make memories and share meals, but it’s the perfect operation center for their ever-growing farm. After completing their home-build, they dove head-first into making their farm a success.  

The two have turned the traditional cash-crop farm into a produce operation – selling things like corn, tomatoes, peppers and onions to the community at their self-serve stand on the property and to some local restaurants. The couple also offers you-pick flower options throughout the property.  

Although the farm is a staple in the Saginaw community now, it took some hard work to get there. 

“We started with nothing,” Taylor explained. “The first year, we used a tractor that Ryan got from his grandpa. Every year we get a piece of equipment or two that will make it a little easier. It’s a huge undertaking, but it’s extremely rewarding to see it come to fruition.” 

And they’re sharing that reward with the community. Ryan and Taylor founded the Thomas Township Farmer’s Market in 2022. The market houses about 20 vendors and serves nearly 1,000 members of the community. 

“It’s definitely awesome to see people come out and support it,” said Ryan. 

“It really inspires you to put your ideas in action to make a bigger impact,” said Taylor. “Seeing people come to your produce stand is rewarding, but when you go the next step and see the acceptance of your ideas outside of the farm and in the community, that’s a good feeling.”  

The Schomaker family isn’t slowing down any time soon. They plan to keep expanding the farm, market and making core memories in their homestead for years to come – and we’re excited to support them as they grow. 

“It’s fun watching people, over time, accomplish what they set out to do, and if we can help, that’s even better,” Anthony reflected. 

 

To view the article in the online 2023 Fall Partners Magazine, click here.

Those who follow the political entanglements of our times have an uneasiness about the future of where some of our major policy issues may land. There are more questions and uncertainties than there are answers and clarity. There is a sense that emotions have overcome logic as leaders make efforts to settle on firm ground on many confounding politically charged issues, including food and agriculture policy. 

Efforts to stay engaged with strong communication remain as a necessary constant demand. With broad engagement and leadership, our collective prospects for a bright agriculture future will endure. Reflecting on history, we have always found a better way forward with engagement. 

The engagement of our political leaders takes some courage and patience, and input from our cooperative members who have feet on the ground and hands in the dirt. Collaborative groups have been formed across diverse interests to provide strength in communication. These collaborations have proved to be an essential tool to assist leaders understand the dynamics of the challenges in agriculture and food policy.

What is at stake if we do not get this completed competently is captured in a couple statements made by former President Hebert Hoover, who led the first worldwide humanitarian food effort during World War I. While educated and employed as a mining engineer, he was directed to lead the food aid effort in Europe because of his ability to get things done during that time. As head of the American Relief Administration with a mission to extend aid to famine-stricken Russia he reported, “Twenty million people are starving. Whatever their politics, they shall be fed.” Leading up to that moment there had been decades of struggle and debate over the role of USA to serve humanitarian aid. A way forward was found.

Yet today we still struggle over budget and policy to the point of gridlock. As we go and grow forward, we know agriculture of all kinds must be supported because the risk is hunger. As Hoover said in a radio address to the American people on May 17, 1946, “Hunger is a silent visitor who comes like a shadow. He sits beside every anxious mother three times each day. He brings not only suffering and sorrow, but fear and terror. He carries disorder and the paralysis of government, and even its downfall. He is more destructive than armies, not only in human life but in morals. All the values of right living melt before his invasions, and every gain of civilization crumbles.“

Don’t take agriculture and the miracle of a sound food system for granted. Together we need to maintain a consistent rhythm of engagement and communication to assist our leaders in making the best policies to serve us all. As we work together to overcome the politics of our time, our engagement awards us with being recognized the great humanitarian of this generation.

As timing for a new Farm Bill faces a looming deadline, Congress does not appear to be able to successfully meet the challenge to get through the finish line. It seems nearly impossible to get a Farm Bill under the circumstance of government shut down and budget disparity. There is no crisis in agriculture currently, yet there is need to maintain stability in agriculture policy as the supply chain remains fragile. Encourage broad communication and engagement while we can through this current political cycle, and together we will avert disasters of the past.

 

To view the article in the online 2023 Fall Partners Magazine, click here.

Throughout the course of the year, action has been taken through the PACs to disburse funds. This has allowed your GreenStone team, board of directors, and fellow members to be involved in dialogue with legislative leaders that are interested in and eager to support the agriculture industry. Discussion centers around building relationships, providing education on the structure and value of GreenStone and the Farm Credit System, and discussing our rural communities and agriculture. 

In Michigan, close to 20 individual meetings have occurred with Senators and Representatives to introduce GreenStone to the new leaders in the legislative branch. In addition, in June a widely attended legislative lunch reception was held at the Capitol and was a huge success. Your GreenStone staff engaged with more than 200 elected officials and staff. The event was a great success and is evidence of the work done for many years to build relationships. Time was taken to educate legislators on the productivity and sustainability efforts of farmers and let them know our concerns with unnecessary regulation. GreenStone is a trusted resources in the constantly evolving political landscape, and your financial support provided through the MI GreenStone PAC is what makes that possible!

In Wisconsin, planning the Ag Huddle fundraiser for Senate and Assembly Agriculture committee is underway. The event was so successful last year that it is coming back by request and it is anticipated to keep growing in number of attendees and financial support provide to the committee members!  Numerous legislative items are being tracked and discussed, including land ownership, agricultural road improvement funding, and fertilizer requirements.  

Federally, over 20 meetings have taken place with U.S. Senators and Representatives to communication the importance of the Farm Credit System. The focus has been and is on the importance of the Farm Bill to the Farm Credit System, agriculture, and rural communities. A significant portion of the legislature has never voted on or provided staff support for a Farm Bill, and as a result there have been ample opportunities to education on why the Farm Credit System was chartered and how GreenStone and the other Farm Credit associations still carry out the mission in the ever changing business environment. In addition, a special Farm Credit marketplace reception will take place in DC this fall where two GreenStone customers products will be highlighted. Beef Sticks from Green Vale Farm in Michigan and dried cherries from Country Ovens in Wisconsin will be given out. It was a great opportunity to share products from customers, and more importantly share its contributions and challenges in the domestic and international trade economy.  

As stewards of the Farm Credit System and partners in the agriculture industry, the highest importance is placed on communicating the importance of Michigan and Wisconsin agriculture to our communities, country, and world. This is not possible without your support and we thank you for it. Strong relationships will continue being built to help ensure support for rural communities and agriculture for years to come.

Heads up that the annual MI GreenStone PAC and WI Farm Credit PAC drives will be taking place in January. Be sure to look out for the voluntary pledge and contribution card at the end of December. If you have questions about getting involved with hundreds of your fellow members, contact your local branch.

 

To view the article in the online 2023 Fall Partners Magazine, click here.

 

Wire fraud is costing people and organizations billions annually. CertifID identified $1.4 billion (about $4 per person in the US) in suspected wire fraud attempts during 2022. That is an increase of 181% from 2017 to 2021 (CertifID, 2022).

This is an urgent issue affecting both businesses and our customers alike. The allure of quick and convenient money transfers is undeniable, but it comes with its own set of risks. The ease and speed that make wire transfers attractive are the same factors that make them a prime target for fraudsters. Fraud like fake invoices, and real estate fraud often exploit the urgency and lack of scrutiny in wire transfer processes. Here are some tips to help keep you safe! 

Common Scams: Wire fraud is a serious crime that can have a devastating impact on victims. Here are just a few of the most common wire fraud tactics and what to look for:

• Fake Invoices: Scammers send counterfeit invoices that look like they are from legitimate vendors. They may ask you to wire money to a fraudulent account.
• Real Estate Fraud: Scammers trick you into sending money to a fake account during a property transaction, often by hacking into an individual or business email account. They may pose as a real estate agent or lawyer.
• Personal Impersonation: Scammers pose as a distressed family member or friend in need of emergency funds. They may ask you to wire money to a fraudulent account.
• Overpayment Scams: Scammers send you a check for more than the amount owed and ask you to wire back the difference. The initial check will eventually bounce, leaving you out of pocket.
• Business email compromise (BEC): Scammers hack into a business’s email account and send fraudulent emails to employees, requesting wire transfers. The emails may appear to be from a legitimate sender, such as a CEO or CFO.

Spotting Red Flags: Awareness is your first line of defense against wire fraud. Scammers are constantly evolving their tactics, so it is important to be aware of the latest red flags. Here are a few things to look for:

• Last-Minute Changes: Sudden changes in account details are a glaring red flag. Always verify added details through a trusted channel.
• Compromised Emails: A compromised email account can leak deal-specific information. Always double-check any unusual email activity.
• Unusual Urgency: Scammers use urgency to cloud your judgment. Always question why a transaction needs to be rushed.

Proactive Steps: Wire fraud is a serious crime, but there are steps you can take to protect yourself. Here are a few proactive steps you can take:

• Voice Verification: Always verbally confirm transaction details using a verified and trusted number. Never call the number provided in an email message, and always ask questions to confirm the identity of the individual on the other end of the conversation to avoid voice modification scammers.
• Secure Your Email: Strengthen email security by using robust passwords and two-factor authentication. If you think your email account has been compromised, you should review inbox rules that might have been created by the attacker to obfuscate their malicious actions – such as auto forwarding actions.
• Regular Monitoring: Keep an eye on your bank statements and flag any unauthorized transactions immediately.

What to Do If You are a Victim: Wire transfers are immediate, and this makes it difficult to recover funds. However, there are still steps you can take if you are a victim of wire fraud. Here is what you should do:

1. Contact your bank immediately: Tell them that you have been the victim of wire fraud and ask them to stop the wire transfer if possible. They may also be able to assist the authorities in tracing the money.
2. Report the fraud to the authorities: You can file a complaint with the FBI’s Internet Crime Complaint Center (IC3) at https://www.ic3.gov/. You can also contact your local law enforcement to report a crime.
3. Keep records of all communication with the scammers: This includes emails, text messages, and phone calls. These records could be helpful to the authorities in their investigation.

Your Role: The Final Safeguard

While GreenStone and other financial institutions take measures to help secure wire transactions, the ultimate responsibility lies with you. You are the final safeguard against wire fraud. By being aware of the risks, being vigilant, and taking proactive steps, you can significantly reduce your risk of falling prey to wire fraud.

• Be aware of the latest wire fraud: Scammers are constantly evolving their tactics, so it is important to stay up to date on the latest frauds.
• Be vigilant: Do not rush into sending money. If something does not seem right, it is not.
• Take proactive steps: Do not wait for something to happen. Take steps to protect yourself, such as verifying the recipient’s information carefully and using a secure payment method.

By following these tips, you can help to protect yourself from wire fraud. Remember, you are the final safeguard.

References

• CertifID. (2022). State of Wire Fraud: 2022 Trends and Industry Forecasts. Retrieved from https://www.certifid.com/state-of-wire-fraud-2022

 

To view the article in the online 2023 Fall Partners Magazine, click here.

Whether your roots run deep in the field, or you’re establishing roots in a new home, we’re here to help make your dreams a reality.

Maybe you’re looking to build a home for your family to settle in the country, a hardworking farmer getting ready for harvest, or on the hunt for recreational land ahead of deer season. There’s one thing you should know: GreenStone has you covered.

It’s our vision to be rural America’s first choice for financial services, and we live that vision each and every day by offering a wide range of financing options for farmers and rural residents in Michigan and northeast Wisconsin.

Helping You Establish Roots: Loan Options for a Country Home

• Home loans: You can count on our expertise in rural homes to provide you the best financing possible for your dream home in the country.
• Home construction: Whether you’re doing it yourself or hiring a team of builders, we can help you finance your dream home build in the country.
• Home site vacant land: When you find the perfect location for your new home, we can structure the financing to align with your building plans.
• Recreational vacant land loans: Owning your own special place to hunt, fish, hike or simply enjoy time outdoors with family and friend is possible with a recreational land loan.

Your Roots Run Deep: Loan Options for Farmers

• Farm operating loans: A readily-accessible line of credit to give you the flexibility and stability to manage your business – from planting season, to harvest, and everything in between.
• Farm real estate loans: We have the expertise to provide farmers of all sizes the right land loan package to fit your needs.
• Farm construction: With the option to fully-contract construction work or do-it-yourself, we have loan programs to fit your unique situation.
• Farm equipment: We provide loans for equipment, livestock and facilities with terms up to seven years with customizable repayment options and interest rates.
• Farm leasing: The option to lease provides significant advantages over owning as it can be an excellent way to reduce costs, improve cash flow, avoid equipment obsolescence, free up capital and maximize tax advantages.
• Agribusiness: Our team of experts will work with you to design a financing program or provide services to meet your business needs.
• CultivateGrowth: We provide flexible loan terms for young, beginning and small farmers to build a foundation to flourish in their agricultural aspirations.Part-time farm: We understand the specialized nature of part-time farming and will work with you to meet your unique financial needs.

Get Started!

Our team of experts in agriculture and rural home and land financing are ready to make your dream a reality.

Get started, apply now or reach out to your local branch to connect with a financial services officer, today!

Taking the leap into home ownership is a big decision, and there are many factors to consider before going on the hunt for the perfect homestead. When you are ready to make that leap, you will quickly realize there are many benefits to owning a home. Here, we outline some reasons to consider taking that leap!

Building Equity and Credit

A home is not only an investment in your quality of life and future, but also your financial stability. Unlike renting, your monthly payment doesn’t go towards someone else’s investment, it goes toward your own. Owning a home allows you to build equity over time. Equity is the difference between your home’s value and the remaining loan balance. As you pay down your loan, your equity will typically go up over time.

Making full, on-time payments towards your home loan can also help boost your credit score. A high credit score can help with future finance opportunities. Oftentimes, rent payments are not reported to credit bureaus and therefore, do not count towards a credit score.

Stability and Security

Home ownership provides a space of stability.  You as the owner have full control over the living space. You can make any modifications or renovate it to your liking, without the limitations that typically come with a rental space.

This ownership also brings a sense of security. If you have a fixed-rate mortgage, you can count on a consistent monthly payment for the life of the loan. When you rent, your rent rate will be evaluated at the end of each lease agreement and could potentially go up.

Tax Advantages

• Home mortgage interest is tax deductible, which could mean a reduction in the amount of federal taxes you owe.
• Mortgage insurance premiums may also be tax deductible, depending on your income.
• Property taxes can also be deducted up to $10,000 if you’re single or married filing taxes together. The deduction limit goes down to 5,000 if you’re married but filing separately.

Building Pride and Roots

Owning a home and being part of a community brings a sense of pride. Not only do you have the freedom to personalize your space that reflects your style, more importantly, you are building roots and a foundation to build on. When you buy a home and settle down in a community, you can engage with neighbors, make friends, and host the next family gathering.

Get Started

Whether you plan to purchase a home or put on the hard hat to build your dream house, GreenStone is here with flexible financing options to fit your needs.

To get started on a loan application, click here, or have a conversation about your next steps by reaching out to your local branch today!

From keeping track of your financials, to writing up purchase agreements and making decisions about the future of your operation, there are many responsibilities outside of managing crops and livestock on a farm. Having a team of trusted experts on your side will help alleviate some of the stress and contribute to the success of a farm operation.

Loan Officer

Meeting your capital needs of the day-to-day operations, equipment, structures and real estate purchases, you may need to explore financing options. Having a loan officer who specializes in agriculture and can understand your operation is a contact you need in your phone.

A loan officer can help with structuring any loans you may need that best fit your operation.

How often should I speak to them? You should have regular contact with your loan officer, even in times you don’t need financing, to keep them involved in the direction your operation is growing. This will keep them in the loop on future financing opportunities and equip them with the information and knowledge to be able to assist when the need arises.

GreenStone’s team of financial services officers understand the unique needs of agriculture and are experienced in helping to find options to fulfill the financial needs of farming operations and rural communities.

Accountant

It’s important to have an accountant to help keep accurate business records that other members of your farm team will need, such as your loan officer. Having an accountant helps you focus on your day-to-day operations and lessens some of the stress record keeping can carry.

Your accountant can help keep your books up to date with all the expenses and incoming capital, along with end-of-year financial reports and tax planning.

How often should I speak to them? It varies! The more you keep up on your books, the easier it’ll be to provide your year-end financials to your lender and be aware of your financial situation throughout the year. Even having someone keep up with your operation’s financials once a month makes it easier at year-end, so you’re not stuck with a shoe box full of receipts.

Attorney

Another person you will want to be a part of your farm team is an attorney. A lawyer is there to assist you in writing purchase or rental agreements for your operation. Their expertise also extends into helping you work through a succession plan and can provide legal guidance and assistance for that transition and other business decisions.

How often should I speak to them? You should reach out to your attorney any time a legal binding document or agreement needs to be made, and when you’re evaluating operational decisions and farm transition plans.

Agronomist

Preparation for the growing season can be a long process. An agronomist specializes in crop production, soil control and management. Having regular soil testing done to help determine fertilizer needs will improve and maximize crop production. Having someone on your team with expertise to assist with crop scouting and consult on chemical and fertilizer application options can also help improve yields.

How often should I speak to them? You should check in with your agronomist before, during and after your growing season so they can test your soil, discuss the growing season, and provide recommendations for any applications or adjustments that need to be done.

Nutritionist and veterinarian

If you are a dairy or livestock farmer, you know the importance of having a nutritionist and veterinarian on your team.

A nutritionist can assist in monitoring your animals and how they’re reacting to certain feed types and make necessary adjustments if needed. Being present when your nutritionist is on farm can help grow the relationship with them so that they are a trusted advisor you can call on to keep you abreast of new ideas and products.

Veterinarians not only help with herd health and reproduction decisions but can also be an asset to have on the farm regularly to provide additional industry information.

How often should I speak to them? You will typically meet or speak with a nutritionist and veterinarian weekly to monthly depending on your operation.

Business consultant

When you decide it’s time to expand or change something about your operation, you want a business consultant in your corner to help you make those decisions. Business consultants can run through scenarios for your farm that other people on your team may not be able to.

Additionally, if you’re selling your crops, meat or value-added products directly to customers, business consultants may be able to assist you with marketing.

How often should I speak to them? You should contact your business consultant when you see opportunities for growth on your operation or when you have a question about how to best advertise your products.

Network of mentors and peers

A member of your farm team that may be overlooked is a mentor and/or peers who have been in the business for a while. Having a network of people you can approach with questions and call on their experience to learn from or gather ideas from can be helpful.

GreenStone offers a mentorship match through our CultivateGrowth program for young, beginning and small farmers. Learn more about how to get involved in the next cohort here.

How often should I speak to them? You should speak with your mentor frequently, especially when you have questions about your operations that they may be able to help with. Connecting through visiting each other’s farms can be insightful for both parties.

Look for peers that are also at the same stage you are in your farm journey. This is an opportunity to lean on one another and share new ideas that could help take your farm to the next level.

Having regular farm meetings with all members of your team of experts can help ensure that everyone understands the position and goals of your operation.

 

This article was originally published in Michigan Farm News.

Farming is a capital-intensive business, with land, equipment and facilities that can run into millions of dollars. Beyond these capital expenses, farmers face annual input costs for seed, fuel, chemicals, etc. These inputs are often needed at the beginning of the growing season and paid for with proceeds from the sale of crops months in the future. To bridge this gap, many farmers utilize an operating loan, which is a revolving line of credit for the farm.

These loans are tied to the production or operating cycle: money loaned at the beginning of the season is expected to be used for the essential inputs needed to raise that season’s crop, and then paid back at the end of the cycle with the proceeds from the crop or product that was produced using the inputs purchased. This is different from term loans as those are tied to the productive life of the asset being financed, such as up to seven years for equipment or up to 30 years for real estate loans.

Often, using operating funds provides producers access to early-season or pre-paid discounts. For example, reduced prices on seed if purchased in December for a crop that will not be planted until April. In the current economic environment, higher input costs, along with lower crop prices, have led to lower levels of working capital. As a result, operating loans have become more prevalent even among the most financially sound farmers who may have traditionally paid for inputs with available working capital.

Many farmers employ the revolving line of credit at the beginning of the production cycle, then pay it off at the end of the productive season using the profits from the sale of their crops or products, and then start the process again for the following season. Using an operating loan, money is drawn as needed and interest begins accruing only as funds are pulled from the credit line. 

Operating loans are not commonly used to finance capital investments, because of the short-term nature of the loan. Short-term financing for a long-term asset can cause repayment challenges, which is why farmers more commonly match their financing to the useful life of the asset. 

Typically, the security for operating loans is the chattel, a word used for shorter term farm collateral, which can include the crop, both growing and stored, as well as machinery and equipment. Occasionally, a farmer will prefer to use real estate as collateral for an operating loan, such as in scenarios when the crop itself is jointly owned, or there is a prior lien holder on the crop. Security for the operating loan is primarily the borrower’s decision based on their operation’s unique situation. However, when the crop is used as the collateral, in some cases the lender may also require crop insurance, with an assignment of indemnity on the policy. 

One of the risks of employing an operating loan is when the crop itself does not yield enough return to pay off the loan, such as when prices drop unexpectedly or poor yields. In this type of situation, the farmer may be forced to carry the operating losses into the following crop cycle if they do not have alternative capital available to cover the balance. As farmers know, the continuation of this situation impedes profitability and the accumulation of working capital, and increases financial risk.

Operating loans are common across industries, from dairies to cash crops, fruit orchards to vegetables, nurseries to greenhouses. When used properly, they provide financial liquidity when it is needed most, with a short-term repayment to be able to efficiently remove this debt from the balance sheet.

Martin Kasperski is a vice president of lending with GreenStone. To learn more about GreenStone’s loans or speak directly with a financial services officer near you, stop by a local branch.

Both experienced and beginning farmers alike need new machinery and equipment to maximize the farm’s potential, and they don’t always have the cash flow necessary to purchase these crucial updates.

In many cases, leasing can often provide a solution. Among the many benefits of leasing, some of the key factors for you might be:

• Zero down payment
• Quicker depreciation than with a typical loan payment (See your accountant for your specific information)
• Flexible payment schedules
• Simple application and easy approval process (Farm Credit can offer lease options under $250,000 with only a 2-page application and current balance sheet required)
• Lease-to-Own options

What Can Be Leased?

Every leasing company may be different. Through Farm Credit Leasing, farmers can use a lease for most equipment and vehicle needs for your farm or agribusiness, new or used, like:

• Machine sheds and storage buildings
• Grain bins and handling facilities
• Livestock and dairy facilities
• Pole barns and farm shops
• Climate controlled buildings
• Greenhouses
• Tractors
• Irrigation systems
• Processing and packing equipment
• Fertilizer spreaders
• Fleet vehicles
• Solar Projects

That’s right, barns and buildings are included. You can even lease buildings like packing sheds and even production facilities. Of special note is that with a building of less than $500,000, the building itself is all the collateral needed with a Farm Credit lease, which means you can have the building you need without leveraging your other assets like the land it sits on. You can even lease a building on land you rent from someone else.

When it comes to vehicles, because Farm Credit leasing buys direct from auto manufacturers like Ford, GM and Dodge, you can lease fleet basic or customer vehicles like trucks, cars, over-the-road haulers and even ATVs at major savings – perfect for farmers who need to manage their farm to get their produce to wholesalers quickly.

Saving Money, Leveraging Risk

Farming has its unique challenges and risks. Farmers deal with threats like Mother Nature, crop disease and pests. Leasing can help mitigate some of these risks by helping you with your cash flow. 

With a lease, customers can preserve working capital. Leasing can provide 100% financing with no down payment required. Along with this helping people save money for other expenses, it still allows you to get the equipment and facilities you need to grow the business.

Lease payments can be tailored to fit the customer, including monthly, quarterly, semi-annually, and even seasonally.

Tax advantages

When it comes to paying taxes, business owners are always looking for ways to put themselves in a better financial position, and leases are another tool that can help. Leasing can offer a variety of tax advantages. Not only may lease payments be fully deductible, but expensing lease payments over the term may reduce taxable income.

Tax rules can change every year. By utilizing a lease, a borrower can know exactly what expenses to plan for over a longer period. My advice is it’s best to take the tax advantage when you have the opportunity.

It is also important to note leasing also allows owners to seamlessly transfer leased assets to the next generation. This keeps the asset out of the estate, which offers tax benefits. At the time the residual on a lease comes due, the next generation can purchase the assets for the residual amount.

Expert support

When looking at options, it is beneficial for your financial partner to understand the different types of farm businesses, as many can benefit from an accelerated write-off.

When you’re looking at options, it’s important you work with an expert who understands how a lease agreement might benefit the business.

Through GreenStone’s partnership with Farm Credit Leasing, we’re able to offer you this expertise.

 

This article was originally published in Michigan Farm News.