What a year it’s been and it’s not even half over!! Where do I start my remarks in this issue? Market volatility because of lingering supply chain disruption? The highest inflation rate experienced in forty years, coupled with the FED announcing it planned to now get serious in “flattening” the inflation curve by raising rates as many as 6-7 times over the next year? The new Covid variant that is evolving, or the worst military conflict since World War II in Europe as Russia continues its devastating assault on Ukraine?
I have been in this business for nearly forty-one years and while the 1980’s had a terrible impact on our industry, I cannot remember a time when we have experienced so many significant threats (all at one time) to our way of life for over 70 years (the end of WWII). Yes, we have had wars and economic volatility, but nothing like we are currently going through. Yet, as a country, we are still blessed, especially as I watch the news reports about the horrors the Ukrainian people are suffering. Just as we think it can’t get any worse - it certainly could.
Of course, being prepared for challenging times starts well before the skies start to darken. Like you and your business, GreenStone continuously plans and prepares to be as ready as possible for any future events that could adversely impact its ability to carry out its mission. We continue to be in a solid financial position with strong risk bearing capacity to assist our members through the likely “bumpy” times ahead. Capital, our allowance for loan losses, strong credit quality, low delinquencies, efficient operations, and knowledgeable staff continue to provide a solid foundation to provide a dependable, competitive, and responsible source of credit and other financial services in good times and bad.
With all the negative news, it’s easy to get down and frustrated. Despite these storm clouds, we will get a crop planted this year even though acreage may need to be adjusted from what was planned due to input costs/availability and other logistical challenges. Weather, as always, will be a wild card, however, the broad use of risk management tools like crop insurance continue to provide peace of mind to many of our customers by helping insulate them from income volatility. The negatives described above are also creating bright spots, i.e., the highest commodity prices we have seen in years. Yes, input costs will be higher, but overall, here at GreenStone, we are optimistic for a profitable year for most of our members.
This year won’t be “easy,” but then again, are any of them? Every year begins with a new set of challenges with some bigger or smaller compared to what’s in our recent memory. I’m convinced our members’ resiliency, hard work, optimism, management capability, and love for what they do will once again shine the brightest when the storm clouds appear the darkest. Remember, you are the reason GreenStone is successful and our country remains the breadbasket to the world, so thank you for all you do!
Final Message
As most of you probably know by now, this will be the last Partners message I will be writing. I have decided to retire after forty-one years of service with GreenStone and some of its predecessor associations.
I started my Farm Credit System career as an intern at the Production Credit Association of Southeast Michigan in 1979 and 1980. After graduation from Michigan State University in 1981, I became a Loan Officer at the Monroe, MI branch, where I met my wife, Debbie. In 1985, I moved north to take a Branch Manager job at the Imlay City, MI branch of the Production Credit Association of Sandusky. The financial “crisis” of the 1980s was reaching its peak at that time and resulted in the restructuring of the Farm Credit System, which included the consolidation of the Federal Land Bank and Production Credit Associations into “Agricultural Credit Associations” that could serve all the financing needs of eligible borrowers under one roof.
This consolidation continued with the formation of GreenStone in 2000. The remaining four associations covering Michigan’s lower peninsula merged at that time with Farm Credit Services of Northeast Wisconsin (whose territory included Michigan’s Upper peninsula and the northeastern portion of WI) joining GreenStone in 2003. Outstanding volume at that time was about $1.6 billion.
Since those early days, GreenStone has grown to just over $12 billion in assets, 600 employees, 27,000 customers, and 35 branch locations. It is the seventh largest association in the national Farm Credit System out of 65 remaining associations today. It is also home to one of the first Farm Credit System technology “centers of excellence” providing proprietary software and other information technology services to eight other Farm Credit organizations across the country.
Many things have changed since those days early in my career, like desk top calculators, paper files, and hand prepared loan applications, to computers, digital files stored “in the cloud”, and online loan applications. However, some things have not, and I hope never will. The most important of which is the strong relationship we have with you, our members. These relationships and personalized service are at the core of GreenStone’s success. Without these critical elements, GreenStone would be just another place to borrow money and customers are simply faceless, nameless numbers. In fact, the relationships that I have personally had with many of you since being a young loan officer in Monroe, MI and now include some of your children, grandchildren and even a few great grandchildren, plus all my coworkers over the years, will be what I miss the most!
I have been truly blessed to have had a career working with and serving some of the finest people on this planet and have the utmost confidence in the future of GreenStone and American agriculture. Despite the reputation “younger generations” have with those who have gone before them, I have found that they are every bit as passionate about what they do and better at it than many of my age.
GreenStone’s Board of Directors is undertaking a comprehensive search process to find my successor and hope to have a new CEO named by the end of May. This will provide adequate time for a seamless transition before I “ride into the sunset.”
Thank you for your business and loyalty to GreenStone, and most of all the kindness and friendship you have given me over my career. No one could ever ask for more.
Best wishes!
To view the article in the online 2022 Spring Partners Magazine, click here.
