The new year isn’t only a good time to set lifestyle goals, but it’s also a great time to take a look at your finances. This is especially important if you are considering buying vacant land, a new home or even if you’re thinking about making upgrades to your home.
Making a Budget and Making Decisions
Before grabbing a calculator and making a budget, you should take a look at what debt you have and what type of financial standing you’re in. This allows you to see how eligible you are for certain loans based on your credit and gives you an idea of how much debt you have yet to pay off.
Once you have identified the debt you have, it’s time to start listing out your monthly payments. This is going to help you decide if you can take on more debt for a land, house, or construction loan.
If you have enough extra income to tack on another bill, you have to decide if you want to. Just because you can afford to take on a new loan doesn’t necessarily mean it will leave you with enough money each month to live the lifestyle you desire. Consider if the long-term investment is worth having less spending money.
Remember, just because you get pre-qualified for a loan doesn’t mean you can – or should – afford it. Get advice on figuring out what’s best for your budget in this article.
If you listed your debt and realized you need more time before taking on more monthly bills, take time to put together a plan to start eliminating some of that debt. You may wish to start by listing out your debt in order from smallest to largest. Then, create a plan to begin making larger payments on the smallest debt. When that debt is gone, move to the next smallest debt, and so on and so forth. Soon, you may be ready to reconsider that new property or home upgrade!
Setting Aside Money
Another way to position yourself to take on a new loan is by setting aside money now that you can use later for a down payment. When financing through GreenStone, many loans require a 20% down payment for home or vacant land loans. Having that cash set aside will help you be ready to move fast when the perfect property comes your way!
One idea as you start the year is to consider participating in a “no spend month.” This is when you only pay your bills and necessities for a month and spend no other money. So, no lattes, dinners out, or nights at the movie theater. Instead, stay in and enjoy a movie at home or by spending time playing cards with friends. When the month is over, take the money you saved and set it aside for your future loan.
Securing a Loan
If you’re serious about buying new land or securing a new home, sacrificing extra spending now is worth the reward.
When you decide you’re ready to take out that new home, land or construction loan, our team is here to help. Find a GreenStone location near you here and give our team a call to see what financing options are right for you!
#PartnershipPays – March 16, 2023
When our members are successful, we’re successful; and once again that partnership is realized through Patronage!
On March 16, GreenStone staff and members will celebrate together while handing out checks to members totaling $120 million! With a record $120 million in dividends being returned to members this March, there is a lot to celebrate!
Being a member-owned cooperative means our members benefit from our strong financial position. That’s why your board of directors elected to again increase your Patronage return this year from $115 million in 2022 to $120 million in 2023 – that’s remarkably over 40% of GreenStone’s 2022 net earnings and it’s all coming back directly to our loan customers, our members, in dividend checks on March 16.
This record-level Patronage is a direct result of the success of our members and your trust in GreenStone. This partnership reflects our commitment to do all we can to assist our members through unprecedented times, seasons of profit and cycles of challenges.
Each member will receive a notification letter in mid-February in which you’ll learn the amount of your check. With the letter will be a personal invitation to join us in the celebration at your local branch, where you’ll be able to pick up your check and enjoy the festive fun with your local staff.
As a financial cooperative, it is necessary for GreenStone to generate strong earnings and maintain adequate capital levels to help ensure we remain a dependable source of credit for years to come. In support of its members, the cooperative continues to build and grow for the future. Record Patronage, earnings, and capital, combined with strong loan growth in 2022 and solid customer satisfaction and employee engagement, are just a few key reasons our partnership with members will be prosperous long-term. Personal relationships and partnerships with our members are at the heart of our culture; it is what makes partnering pay in this very tangible way.
Patronage Day is an opportunity to celebrate the many benefits of your cooperative membership. Come join us in the branch for food, connection, and fun and collect your member reward.
#PartnershipPays
To view the article in the online 2023 Winter Partners Magazine, click here.
Prep Time: 20 minutes
Rise time: 1 hour 30 minutes
Cook Time: 40 minutes
Ingredients
- 2 cups warm water 110 degrees F
- ½ cup white sugar
- 1 ½ tablespoons active dry yeast
- 1 ½ teaspoons salt
- ¼ cup vegetable oil
- 5-6 cups flour
Instructions
- In a large bowl, dissolve the 1 TBSP of the sugar in warm water and then stir in yeast. Allow to proof until yeast resembles a creamy foam, about 5 minutes.
- Mix remaining sugar, salt and oil into the yeast. Mix in flour one cup at a time. Dough should be tacky and clean the sides of the bowl. Note that too much flour will yield a dry loaf of bread; if you add too much, add a bit more hot water until you get the correct consistency.
- Knead dough for 7 minutes. Place in a well oiled bowl, and turn dough to coat. Cover with a damp cloth. Allow to rise until doubled in size, about 1 hour.
- Punch dough down. Knead for 1 minute and divide in half. Shape into loaves and place into two greased 9×5 inch loaf pans. Allow to rise for 30 minutes, or until dough has risen 1 inch above pans. Bake at 350 degrees F for 30-40 minutes. Cool, brush with butter and enjoy!
Source: butterwithasideofbread.com/homemade-bread
To view the article in the online 2023 Winter Partners Magazine, click here.
Utilizing items that you most likely already have lying around your home, gather the family to make these beautiful snowflake suncatchers.
Here’s what you will need:
- Scissors
- A sheet of paper for each snowflake you would like to make
- Assorted colors of tissue paper
- Clear contact paper or Press’n Seal wrap
Making your snowflake
- Fold one corner of your sheet of paper to the opposite side of the page to form a triangle.
- Cut the excess strip of paper from the top of the triangle.
- Fold your triangle in half to form another triangle.
- Fold one side of your triangle toward the middle to form a point at the bottom, and then fold the other side of your triangle to overlap it.
- Cut the top of your newly formed triangle to remove the points.
- Now the real fun begins! Cut shapes out of the folded paper to create your own unique design.
- Unfold to reveal your beautiful snowflake!
Transforming your snowflake into a suncatcher
- Cut your tissue paper selections into small squares.
- Grab your snowflake and press it onto your clear contact paper or Press’n Seal wrap.
- Now fill in the empty spaces of the snowflake with your tissue paper squares.
- Upon completion, cover the tissue paper side of your snowflake with another piece of clear contact paper or Press’n Seal wrap.
- Cut around the edge of your snowflake to remove the excess sealant.
You have now successfully completed your snowflake suncatcher! Hold them up to the light or hang them on the window to fully enjoy your beautiful creation. If you try this DIY, tag us on social media so we can reshare your cool craft!
To view the article in the online 2023 Winter Partners Magazine, click here.
For nearly 100 years, the Gross family in Weidman, Michigan near Mount Pleasant has been running a full dairy operation.
It started in 1926 when Phil and Steve’s grandfather, Charles Gross, bought some cattle. The farm grew and milk was leaving the property by the gallon.
In 1947, the farm was passed down to Charles’ son, Norman, the father of Phil and Steve. The two boys grew up on the dairy farm where they fell in love with taking care of cattle, and they wouldn’t have it any other way.
“You’re born into the industry and you realize that you enjoy it and you really don’t want to do anything else,” said Steve. “I know it sounds simple, but that’s how it goes.”
“We grew up on the farm,” said Phil. “As kids, we didn’t have a choice. We had to do it whether it meant we were missing out on some stuff or not. As an adult, you look back on it and realize you weren’t missing out on a whole lot.”
The two began running the farm from their father during the 2000’s and fully took over after the passing of their dad in 2015.
A New Phase
For Steve and Phil, keeping up with the times and making sure they can embrace their passion while turning a profit is important. They made the tough decision to move in a different direction with their farm and transitioned from a dairy farm to cash crops.
They began selling their cattle in August. Right now, there’s still a couple of cattle barns left as they continue the transition.
“Nothing happens overnight but we definitely have some more ideas of the direction we want to move the farm in,” said Steve.
As a part of this transition, the brothers began expanding the crops they grew this past year. In the fall, the two finished up harvesting corn, wheat, alfalfa, and soybeans.
The GreenStone Difference
This big transition to being crop only, means it’s even more important their crops are protected.
After working with GreenStone in the past to secure land and operational loans, the brothers wanted their crop insurance to come from the same place.
“We were working with GreenStone for years, so it made sense to do everything with GreenStone,” said Phil.
The two then worked with crop insurance specialist Jordan Schafer to come up with a coverage plan that works for their needs. It’s a relationship that was years in the making.
“The relationship formed over the years,” said Jordan. “I kept in touch with them over the past three to four years. I supplied them with information about different programs incorporated with crop insurance that could benefit them.”
Jordan used a program called Optimum for this analysis – a tool exclusive to the Farm Credit System crop insurance teams. Crop insurance specialists like Jordan enter information about a specific farm into the program and put the farm through different scenarios, like weather events. This helps customers learn about the best crop insurance plan options for their land.
Because of this tool, the brothers decided to get hail protection implemented into their plan because of issues they had in the past.
“With weather the way it is, we grow white wheat that is a little more touchy and we just wanted more protection,” said Steve. “There’s hail that comes through periodically so we are happy to have that coverage.”
Steve and Phil are happy to know that Jordan comes from a farming background and has their best interest in mind.
“Jordan has been really helpful in figuring out the level of coverage we need for our acreage,” said Steve. “He has been a really big help with our operation.”
“Jordan is a straight-shooter and tells us how it is and we appreciate that,” said Phil. “It helps that he has an agriculture background. He isn’t trying to sell us high in the sky, he’s down to earth and understands our operation.”
Family by Their Side
Although Steve and Phil are the brains behind the operation, they couldn’t do it without the help of their family.
Their nephew, Kevin, works alongside them. They hope, one day, he will be able to take the farm over when they decide to hang up their hats.
“The goal is to transition the farm over to the next generation,” said Phil.
Although Steve and Phil’s children aren’t employees of the family farm, they’re not afraid to come back and lend a hand.
“It works out. It’s give and take but we all have our jobs to do. Our kids will come back and help out when they get done with their main jobs,” said Steve. “They might not be full-time employees on the farm, but they come back and help out when needed.”
The Road Ahead
Over the next couple of years, the brothers hope to completely transition out of dairy and expand their fields.
One day, they want to have enough grain storage to be able to sell some crops on-site.
For now, the two will continue leaning on each other until the cows come home, or, find a new home.
“We’ve been able to keep it going during good and bad years, but the good always outweighs the bad,” said Steve.
“Some brothers don’t get along very well with each other, but we have made it work,” said Phil.
And Jordan will keep visiting the farm to help them keep those prized crops protected.
“It’s good of them to keep innovating everything on the farm and surrounding themselves with resources on their farm to help them take every step they can to succeed. I want to be that resource for them,” said Jordan.
To view the article in the online 2023 Winter Partners Magazine, click here.
When the deer season finally wraps up here in Michigan I’m about ready for a break. After more than three months of chasing deer, both in front of and behind the camera, I’ve had my fill of deer hunting for a while. However, as the snow starts to melt, I immediately start thinking about the upcoming deer season and what I can do now to help myself, and family members, be more successful going forward. I use this time of year to focus on scouting, habitat improvements, and tree stand maintenance.
Scouting
In my opinion, there’s no better time to scout than in late winter/early spring. Not only is deer sign clearly evident, but you also have a plethora of in season scouting knowledge still fresh on your mind. If you’ve noticed the deer on your property using a specific trail, or want to check out a certain bedding area, this is the time to investigate. Take your time, study the sign, take notes, and make sure you mark any locations you want to revisit. Marking locations, whether on one of the many hunting applications or on a physical map, is very important. This can be especially helpful later on when the weather warms up and the Michigan landscape begins to change.
Habitat Improvements
This is the time of year I do most of the habitat work on the properties I hunt. Whether that’s hinge cutting, trail maintenance, frost seeding, etc. this is the only time of the year where it really has no effect on your deer season if you spook the deer in your area. Feel free to head into a bedding area with a chainsaw in hand if there’s projects that need to be done. As an added bonus, it’s cooler and the threat of poison ivy is much lower than in the summer months! The amount of work needed can fluctuate from year to year, but it seems like there’s always something to do.
Tree Stand Maintenance
The winter months are a great time to inspect your existing tree stands and blinds to see if any components will need to be replaced. I will also use this time to loosen the straps on my stands/climbing sticks just slightly to keep them from growing into the tree and also remove any lifelines. Storing your lifelines indoors will greatly increase their longevity and it only takes a few minutes to remove them. Although I also may do some trimming this time of year, I save most of that work for the summer when I have a better idea of what the foliage will look like. I generally revisit these stands in early August to trim shooting lanes, reinsert lifelines, and tighten straps.
Deer hunting can be as involved as you want it to be. “Hunt Your Hunt” is an expression that is often used in the hunting world and I think that’s a perfect attitude for hunters to have. Some hunters simply show up to a piece of state land the day before the season opens and trust their knowledge and previous encounters to guide them through the season. Other hunters spend the entire year thinking about, and preparing for, the upcoming season. There’s nothing wrong with either approach. I personally enjoy everything that goes into preparing for a deer season about as much as I enjoy sitting in a tree stand. I have learned that putting in some extra work in the off season helps me and my family to be consistently successful when fall rolls around. It’s never too early to start thinking about the next deer season and the winter months are a great time to start preparing for it.
To view the article in the online 2023 Winter Partners Magazine, click here.
As of the writing of this article, GreenStone’s tax and accounting department is busy meeting with farmers across Michigan and northeast Wisconsin to help each customer manage taxable incomes and to support our farmers in making wise management decisions for current and future farming operations – reducing taxable income levels where it is possible and makes sense by buying equipment, prepaying for inputs, carrying over crops, or using other tax planning strategies available. It has been extremely busy this year with the commodity prices that most of our farmers were fortunate to experience!
When you are reading this article, we are now into 2023 and it is too late to buy inputs or equipment to reduce 2022 taxable income. However, there is another play that can still be run come income tax filing time this year – that is to utilize farm income averaging via the Schedule J Internal Revenue Service Form.
Our tax accountant experts anticipate the use of farm income averaging to increase this year – farm taxable income levels have been relatively strong the last year few years due to commodity prices and significant government aid. Many farmers have utilized accelerated depreciation methodologies such as Section 179 or bonus depreciation in the past few years to manage taxable income levels down.
After a few years of strong results, rising equipment borrowing rates, continued supply chain issues in the equipment market, and questions of potential increases in income tax rates in the future – it may feel like you are running out of rope and can no longer (or no longer want to) continue kicking income tax burdens down the road. Farm income averaging may assist you this year if you will be paying income tax.
What is farm income averaging?
It is a federal statute that allows farmers to spread a portion of their current year farming income equally over the three previous tax years. By averaging an income tax burden over several years, you can reduce the effects of both low and high taxable income years. This can be done using the aforementioned IRS form 1040 Schedule J.
How does it work?
Below is a simplified computation showing the impact of farm income averaging for a married filing jointly 1040 return. The example assumes that the farmer’s taxable income for 2022 is $323,800 and that 2021, 2020 and 2019 were all managed to $0. With this fact pattern if farm income tax averaging were not used, the farmer would have paid the following tax each year:
With the use of farm income averaging during the 2022 tax filing, a farmer could assign between $78,950 and $81,050 to 2019 through 2021 to soak up all of the 10% and 12% tax brackets for those years. When filing the 2022 tax return, you act like the farmer paid the respective tax for each year and add those taxes to the remaining amount taxed in 2022. This is how it would look in the simplified scenario:
As you can see, the effective tax rate drops from 20.2% to 11.5% via the utilization of income averaging. It results in permanent tax savings of $28,119.
What can you do?
The IRS has been friendly to farmers with this statute – it is flat out a great provision for farmers. This is something you should bring it up to your CPA or income tax professional this year to see if it is an option for your individual situation. The rules can be complicated and this article is a simplified example. However, you’ll want to at least ensure it is being considered when you complete this year’s income tax filings.
If you are interested in learning more about anything you read within this article, contact your CPA or a local GreenStone tax accountant. GreenStone offers a full array of tax and accounting services for farmers and other business owners, and we are ready to assist you with your income tax filing needs.
To view the article in the online 2023 Winter Partners Magazine, click here.
A vision for the West Michigan Research Station was set back in 2019, and thanks to the help of producers and donors in the community and across the state, the center broke ground in 2020.
It is now a part of Michigan State University Extension (MSUE) and is a place for growers to gather, get information and learn about the specific needs of plants and soil in Oceana, Mason, and Newaygo counties.
Inside the building, you will often find MSUE Educator Emily Lavely. Equipped with a research background in root and tree health, she was excited to join the team at the station – especially because West Michigan crops have different needs than others in the state. She wanted to get to the bottom of those specific needs and help area farmers grow the best crops possible.
This past season, more than 6,000 trees were planted at the station. That includes new apple varieties, sweet cherries, peach and pear trees. These trees will soon be evaluated to recommend new varieties, rootstocks, and growing practices that are best suited for the area.
“I feel incredibly privileged to be able to work with the growers here and have this resource here and have the support of the board,” said Emily. “It’s something I’m very thankful for and I look forward to continuing supporting growers for years to come.”
That support includes board president Andy Riley. A farmer himself, Andy was part of the group that came up with the vision for the station. He said he never expected the center to come together so quickly, but thanks the community for their unwavering support because most of the funding for the station comes from donors.
“The thing I tell people I’m the proudest of is when you walk in the front door, you can see the people and the organizations that got behind the project on display,” said Andy. “The success of the station depends on the support of the community staying engaged in the research station. The partnerships we have established – many people are annual donors.”
GreenStone is one of those partners. The cooperative is committed to going the extra acre for our members and the farming community, and that includes investing in horticulture research.
The station is proud of the community’s support, so in return, they are proud to serve the community. The center is for research purposes first but also serves as a community center. They have opened their doors for things like blood drives and celebrations, and even housed some court hearings during the COVID-19 pandemic when the county needed a larger area to spread out.
The future of farming depends on help from the community, knowing best practices, and sharing ideas. That is what is happening inside the doors of the West Michigan Research Station.
GreenStone is proud to be a part of this legacy.
To view the article in the online 2023 Winter Partners Magazine, click here.
When it comes to achieving measurable results toward sustaining human existence, what all humans need is food. If society cannot get food right, what else matters?
We can argue about all other things, and hold strong opinions about core values and issues, but at the end of the day, nutrition matters. Identifying the goal, taking measured action toward the goal with maintenance along the growth of the crop allows for real results.
There is a whole lot of detail and knowledge that allows for the successful outcome, and those details came from generations of learning. Getting beyond the books and doing the work makes a successful farmer.
With all that gets accomplished for the good of society by farmers, all that we rely on happening, the world of agriculture continues to evolve. Hybrid seed development, aeroponics, aquaponics, hydroponics, tissue culture, drones, robotics, and vertical farming are just a few of the sensible agricultural methods and technologies which are the future of food production. Constant progress is required and that comes from endless engagement with relentless action.
Learning to take reasonable chances outside a normal practice is one of the best skills anyone can develop. As a general group of professionals, farmers may be the most reasonable risk takers in business. As we know, the numbers of people in that profession are small in comparison, yet the risks they take each year are great. Those involved in agriculture know this to be true as it is a lived experience. Others read about it to get some appreciation for it. These others outside of actual production might even try to support it with “good” government policy and regulations, which farmers’ have experienced how that may or may not result in the intended support.
As agriculture leaders emerge and develop, the community must remain engaged and vocal. It will be our own voices that need be heard because of the lived experience we can share. To do this, we may need to be different than we have been in the past as the threats to being innovative become greater stifling growth. Just like sticking with what we know in agriculture production would ensure staying where we are in food production, so would sticking with were we are in how we communicate regarding our industry. To be innovative in production of food requires us to be innovative in how we communicate.
This will be particularly true as the policy leaders march toward embracing ideas coming from people who have not lived the experience of getting it done on the farm. We are on the eve of legislative leaders creating another Farm Bill. This Farm Bill and its accompanying regulations could dramatically effect how our food is grown. We need to evaluate both the little steps and big steps that must be taken to maintain agricultural sustainability to keep up with production demands.
Year after year, month after month, day after day, action has been taken by farmers and a complex network of support to get it done, delivered and digestible for others.
To view the article in the online 2023 Winter Partners Magazine, click here.
Your MI GreenStone PAC and WI Farm Credit PAC finished 2022 strong with meetings and checks being delivered to both Senate and House of Representative legislators and 2022 candidates. All the planned disbursements were completed in Michigan and Wisconsin! The meetings were productive as connections were made and the cooperative structure of borrower-owned lending association was communicated.
At the Federal level, the legislative activities have been very dynamic from ag labor to the Farm Bill. The Farm Credit System, through individual Farm Credit associations and the Farm Credit Council, has been able to provide prospective as called upon. None of this would be possible without your engagement and commitment to raise legislative awareness of rural communities, agriculture, GreenStone, and the Farm Credit System.
GreenStone will continue to build relationships for future support and strengthen the recognition of our members. Conversations will continue to take place in an effort to unite and expand our individual and collective legislative outreach efforts. The goal is to increase the awareness of the overall value of rural communities and the agriculture industry to our economies, and Farm Credit’s vital role in that. Your continued support is commended and we look forward to continuing to involve members in delivering these messages!
The MI GreenStone PAC and WI Farm Credit PAC annual drives are going on now! Be sure to send your voluntary Patronage pledge before January 31 to direct dollars from your Patronage check to the PAC; or you can make a direct contribution to the PAC at any time. Join hundreds of your fellow members in strengthening the recognition of agriculture as a key component to a thriving economy!
To view the article in the online 2023 Winter Partners Magazine, click here.