Association Insider
Y
June 2014
The 2013 Northeast Dairy
Farm Summary is available.
The publication is a compilation of figures and comparisons based on a selection of
517 farms throughout the
Northeast, with over 100
farms from Yankee Farm
Credit’s territory. This report serves as an economic
overview of the industry and
provides detailed information
useful for analyzing your current situation and projecting
financial growth.
Contact your local Yankee
office if you would like to
discuss comparing your farm
to the Northeast Dairy Farm
Summary, or call Liz Bayne,
Farm Consultant @ 802-2953670; or 800-370-3276.
Office locations
Chazy, NY
1-800-545-1097
Middlebury, VT
1-800-545-1169
Newport, VT
1-800-370-2738
St. Albans, VT
1-800-545-1097
Financial Services - Part of Yankee’s Mission - By Geoff Yates - SVP
One important part of our
mission is to provide financial services that are closely related to our core
credit function. We offer
a wide array of financial
services which are intended to help you manage
your business and financial
affairs thus increasing your
potential to make profitable decisions.
ing popular with customers looking for help with
business and intergenerational transfer planning.
Here are the services we offer currently – more
information can be found on Yankeeaca.com under
the Products and Services tab.







Appraisal
Business Consulting
Credit Life Insurance
Crop Insurance
Payroll Services
Record Keeping and Business Analysis
Tax Services
Our Financial Services department is staffed by qualified and highly trained professionals who specialize
in various agricultural and financial fields. We work
as a team within Yankee but also work collaboratively with our sister Farm Credit organizations to
ensure the services we provide are at the forefront
and up to date with regard to the latest rules, regulations, planning techniques and opportunities.
Financial services are important to your business for
several reasons. For example, good financial records make it much easier to analyze loan applications thereby increasing your access to credit. Financial services are also important as tools to assist
in the successful management of your business.
Financial services are offered on a fee basis to assist
in a wide range of challenges that you face in your
business, including valuation and risk management.
Our most recent addition to the menu of services is
our own consulting service which is rapidly becom-
Providing financial services that help you become
more successful in your business is an important
part of our mission. Please check out Yankeeaca.com or call your local office for more information.
Annual Meeting Recap
On April 10th we completed our 2014 annual meetings.
Each April, we hold four meetings around our territory
so that members may attend a meeting close to home,
enjoy a meal with local members, directors and staff
and exercise their right to vote. Our Board of Directors, management, and staff look forward to these
meetings each year for the opportunity to visit with
customers and share Yankee’s financial results.
An important component of the meetings are the director elections. Each year we elect one director in each
of our three regions to a three-year term of office. This
year’s elected directors are:
Region 1: Celeste Kane-Stebbins
Region 2: Walter Gladstone
Region 3: Paul Franklin
White River Jct., VT
1-800-370-3276
We would love to hear your feedback about our annual
meetings! E-mail your comments to [email protected], or give us a call at 800-639-3053.
Williston, VT
1-800-639-3053
As your association we want to know what we can do to make these meetings as valuable as possible.
Page 2
Fond Farewells
We have two employees leaving us this summer. Shantel Thomas is going to be a stay-athome mom to her 5 year old daughter, Alivia
and 3 year old son, Sean; Clara Ayer will be
returning to the family farm. Please read their
comments below:
Shantel says, “It has been a real pleasure and
learning experience working with all of you
through Yankee. Crop Insurance was brand new to Yankee when I began and I truly
have enjoyed the experience
of taking the program from
nothing to almost a $2 million
book of business. I am in the
process of training Amy
Couch and will transition the
program over to her. I wish
you, the growers, and Yankee
continued success with the program.”
Comments from Clara: “My experiences over
the last four years at Yankee have taught me
many valuable lessons; I would like to take a
moment to share a few.
 The staff at Yankee is a talented group that
cares for their customers as if they were
family. Members can feel proud to have
that kind of relationship with their lender
and/or financial services provider.
 Agriculture here in Vermont, New Hampshire and New York is healthy and growing
with many new farmers every year!
 There will always be challenges, unknowns
and things beyond our control, how we
handle these things shows our true character. In just four years I have seen farmers
recover from the 2009 downturn and destruction from Hurricane Irene; the Yankee
character is certainly strong!
I truly value the connections I have made
over the years at Yankee both with staff and
members alike. I hope
to continue to see
many of you over the
coming years but in a
different role; as a
farmer. I am very
lucky to have an opportunity to be a part of my families’ dairy, Fairmont Farm, and I am excited to see the industry
from a whole new perspective.
We wish both Shantel and Clara the best of luck
with their new pursuits.
Association Insider
Employees on the Move!
At Yankee we take great pride in our employees and hope you will join us in supporting our staff members in their new endeavors.
(left to right) Tom St. Pierre, Mike Farmer, Dave Lane, Loren Petzoldt
Tom St. Pierre has been promoted to Senior Loan Officer in our St. Albans office in
acknowledgement of his expertise. Tom is one of our resident maple authorities and
runs a 2,000 tap maple operation in his spare time.
Mike Farmer began with Yankee 25 years ago as a Loan Officer. He was most recently a SVP/Regional Manager in the St. Albans office. With his skill set and vast experience we have promoted him to SVP/Chief Systems Officer. He is intent on helping
Yankee be as efficient as possible. In the winter months, Mike suffers from “Ski-Doo
flu” and spends as much time as possible snowmobiling with his family. He is also the
president of the Fletcher Rough Riders Snowmobile Club.
Dave Lane began his Yankee career in 2011 as a Senior Loan Officer. Dave has been
promoted to Assistant Vice President/Branch Manager for the St. Albans office.
Dave and his family run Snow Farm Vineyard and Crescent Bay Farm.
Loren Petzoldt joined us as a Loan Officer in our Newport office and is celebrating
25 years with us as well. Loren has been promoted to Vice President in recognition
of his dedication and hard work. In his spare time, he attends his kids sport/dance
events and operates a 1,200 tap sugarbush with help from family and a neighbor.
Please Welcome Our Newest Employees!
Jesse Taft is our newest Financial Services Representative in White
River. Jesse joined Yankee in late November and has quickly made
himself part of the team. Jesse graduated from Wesleyan University
with a B.A. in history and resides in Cornish NH with his wife Holly
and their three children, Ayla, Marin and Abe.
Amy Couch has joined Yankee as our Northeast
Crop Insurance Marketing Agent for Crop Growers LLP in our
St. Albans office. Amy is a graduate of Cornell University with a
Bachelor’s degree in Development Sociology and a Master’s degree in Environmental Management from Cornell’s Dyson School
of Applied Economics and Management. Amy grew up in the San
Francisco Bay area of California but spent a few years at Cornell
and is excited to be back in New England.
Gisele Bronson has been hired as an additional office assistant for
our Middlebury office. She is a graduate of Champlain College, with
an associate's degree in accounting and computer programming.
Gisele grew up on a farm in Addison County and currently lives in
Shoreham with her family.
We are excited to have them on board and hope you will join us in welcoming
them!
Interested in working for Yankee? Check out career opportunities on our website.
Page 3
The Agricultural Act of 2014
Article written by Robert A. Smith, Senior Vice President, Public Affairs and Knowledge Exchange who works with Yankee Farm Credit on public affairs related issues.
After nearly three years of development and deliberations, Congress passed and the President
signed the “Agricultural Act of 2014” in February. Commonly known as the “farm bill,” this
bill should probably be viewed as more of a “food bill.” While the bill’s provisions clearly impact many aspects of agricultural production, nearly 80% of the funding in this legislation is
projected to be spent on the Supplemental Nutrition Assistance Program (SNAP or food
stamps).
The final 2014 Farm Bill is projected
to spend
$956 billion
a ten
year period, with $756
Time
to Spruce
upover
your
Records?
billion for nutrition. Passage of this farm bill was far more difficult than others as competing
interests and viewpoints on policy and spending priorities collided making it difficult to muster
the necessary votes. Whether or not this is the last of the “farm bills” that couple farm and
nutrition programs will be a topic of much debate going forward.
Robert A. Smith, Senior Vice President, Public Affairs and Knowledge Exchange From an agricultural perspective, a few things stand out in this bill:
 This farm bill leaves the producer with far more decisions to make regarding participation in farm programs.
Producers will have to consider various options in determining their approach on farm programs.
 Crop insurance is now the dominant farm program in the bill. While farm support programs become less significant, crop insurance becomes more important as risk management takes a higher priority.
 As a whole there is far more diversity in the programs representing the wide diversity of agricultural production and marketing.
Northeast Agriculture Highlights
Trying to develop a short summary of key provisions in a 949 page bill will inevitably leave something out that is important
to many readers. For most programs, USDA needs to promulgate rules and establish procedures. You can find the full Agricultural Act of 2014 and information on USDA implementation actions by doing a web search for usda.gov/farmbill.
Mr. Smith has written a summary of the pertinent provisions as they relate to individual commodities. For more information on the individual programs, please visit our blog at http://yankeeaca.blogspot.com/.
Special Supplement - The Agricultural Act of 2014 (continued)
Page 4
Association Insider
Letter from Congressman Bill Owens.
The recent enactment of the Agricultural Act of 2014, commonly known as the Farm Bill, is a victory for agriculture in
our local communities and across the country. Not only does
agriculture represent a significant percentage of our GDP, but
an abundant local food supply ensures we do not become dependent upon foreign sources.
Farm Service Agency (FSA) loans, which are authorized
through the Farm Bill, are an important financing tool that can
help local family farms to thrive. To improve access to this financing mechanism, I authored legislation included in the Farm Bill (H.R. 1297) that expands the legal entities currently eligible for FSA loans and gives
the Secretary of Agriculture discretion to add new types of legal entities that may be developed in the future
for purposes of farm management and estate planning. These amendments to 7 U.S. Code § 1922 (a) are
found in Title V of the Farm Bill.
These provisions make eligible for FSA loans two specific types of multiple entity structures that are increasingly common among family farms and did not previously qualify:

Today many family farms have both a farm ownership LLC and farm operating LLC to facilitate
ownership of multiple family members. This may be done for liability protection and to facilitate
the transfer of a farm business between generations. Previously, because the operator of the farm
(the operating LLC) did not own the farm (farm ownership LLC), neither was eligible for an FSA
loan. This was true even if both LLCs involved just one family farm operation. My provision
allows an operating entity, as described above, to meet the owner operator requirements to be eligible for an FSA loan, so long as the owners of the family farm own 50 percent, or such other
percentage as the Secretary determines is appropriate, of the owner or operator. [7 U.S. Code §
1922(a)(2)(A)]

Farms operating with an embedded entity structure were also previously ineligible for an FSA
guarantee. An embedded entity occurs when one entity is owned wholly or partly by another entity. This embedded entity situation is occurring more frequently as more farmers complete estate
planning. For example, Joe and Jane Farmer may decide to transfer their individual ownership
interests in Farm Operating, LLC to Joe Farmer Revocable Trust and Jane Farmer Revocable
Trust per their estate plan. However, once the trusts owned the LLC, the LLC was no longer eligible for an FSA loan although the farm operation and ownership had not fundamentally changed.
My provision allows the use of embedded entities if at least 75 percent of the ownership interest
of each embedded entity in the operating entity is owned directly or indirectly by the individuals
who own the family farm. [7 U.S. Code § 1922(a)(2)(B)]
These important changes facilitate a more fluid federal program that recognizes that as family farming
operations become more complex and involve multiple generations, USDA must have the flexibility
to adapt to a changing marketplace and to creative ideas family farmers and growers use to preserve
their operations and continue to provide a safe, abundant food supply.
Representative Bill Owens
United States House of Representatives
New York’s 21 Congressional District
Page 5
Spotlight on Partners: New Hampshire Community Loan Fund
Yankee Farm Credit is proud to partner with several organizations in our territory who offer financing and financial services to the farm
community. As part of our mission "to improve the income and well-being of all types of agricultural producers and farm-related businesses by furnishing sound, adequate, and constructive credit and closely related services" we work closely with other financial service
providers in our territory with a similar mission so that our members have access to the financial services that they require to operate
and grow their businesses. One such partnership is with the New Hampshire Community Loan Fund. The article below has been provided by the New Hampshire Community Loan Fund to describe their services. For more information about how Yankee and our partners can help you reach your financial goals, contact your Yankee Farm Credit representative.
The group has hosted guest speakers on
Without Harm (HCWH). Together, the
two organizations are weaving together the issues affecting agriculture practices in the
state, such as wetland compliance and hisdemand and supply sides of the food-totoric preservation, and on resources availainstitution
channel. up your Records?
Time
to Spruce
ble to help food producers, such as Natural
Resources Conservation Services (NRCS).
Their first collaboration is a questionnaire
The New Hampshire Community Loan
for food producers interested in selling to
Fund’s Business Finance team helps farmers hospitals and other health care facilities. The Seeking funding from a lender for the first
and food producers meet the growing con- questionnaire, posted on the Community
time can be intimidating and daunting, so the
sumer demand for local food. It does this
group also developed a fact sheet to help
Loan Fund’s Web site (http://
through its Farm Food Initiative, which con- www.communityloanfund.org/
business owners prepare for discussions
nects these business owners with the capital farmtohealthcaresurvey.pdf) helps food
with lenders and for a loan application. The
and technical assistance they need to com- producers inform health facilities about
tool eases the process by incorporating a
their business and products, and connect
pete in a changing marketplace.
list of questions a lender will ask.
with interested buyers.
Whether the goal is diversification, expanFor example, lenders considering an applicasion or collaboration, the Farm Food Initia- Its farm-food experience led the Communi- tion look for certain characteristics, includty Loan Fund to an understanding that build- ing a clear plan about how the borrowed
tive can help. The Community Loan Fund
ing a strong regional food system requires
has financed investments in machinery and
money will be used, familiarity with the
the backing of a strong collaboration of
new products, relocating a farm, and probusiness’s financial condition, and how well
lenders. So, two years ago, it helped create the financial information has been prepared.
duction and purchasing.
the New Hampshire Agriculture Financiers.
The Business Finance team works to get to
The fact sheet is posted on the Community
The Agriculture Financiers bolster the suc- Loan Fund Web site (http://
know and become a valued partner of the
cess of agricultural businesses by encourag- communityloanfund.org/business/financing/
farmers and business owners they work
ing collaboration and learning among tradi- farm-food/resources.
with. They investigate the best financial
tional and non-traditional lenders, and by
options for the business and, if needed,
The Community Loan Fund wants to do
helping businesses prepare and position
make referrals to or partner with other
lenders, such as Yankee Farm Credit. They themselves to access the kind of capital they even more to grow a healthy, viable food
system by connecting farmers and producapply their experience and creativity, along need.
ers to markets, and by providing technical
with a diverse menu of financing options, to
assistance and financing. We provide free
Ongoing participants include Yankee Farm
each borrower’s need.
consultations about your capital needs. For
Credit, Farm Credit East, Farm Service
Agency, TD Bank, CoBank, Land for Good, more information, contact Charlene AnderIn addition to financing, the Community
Loan Fund provides education and support the New Hampshire Department of Agricul- sen at (603) 856-0773 or email her at
[email protected].
in a variety of ways. For example, they con- ture, Small Business Administration, UNH
Cooperative Extension, and USDA Rural
nect businesses to institutional buyers
Development.
through a partnership with HealthCare
Did You Know…..Most States Have Unclaimed Property Funds? By Lisa Wener - Senior Accounting Assistant
Businesses in Vermont, New York and New Hampshire are required, by law, to report any unclaimed property to their respective states after a certain period of inactivity. Most often the property is in the form of money such as uncashed checks, but can
include such items as stocks and contents of safety deposit boxes.
In New York alone, there is more than $12 billion of unclaimed or
abandoned financial property!
Occasionally, Yankee reports patronage checks that haven’t been
cashed, to the State of Vermont’s unclaimed fund because we
were not able to locate the recipient. We usually run into this
problem when a recipient of patronage has moved and we have
not received a forwarding address.
To find out if your name is on any of these state
lists, please go to the following websites or call
the phone numbers listed below.
For Vermont: vermonttreasurer.gov/
unclaimed-property or call 1-800-642-3191
For New York: osc.state.ny.us or call
1-800-221-9311
New Hampshire: nh.gov/treasury or call
1-800-791-0920 (NH only) or 603-271-2619
Yankee Farm Credit
P.O. Box 467
Williston, VT 05495
Liz…..Consultant
Building Relationships That Last Generations
FarmStart Intiative
By Tom St. Pierre - Loan Officer
Need write up
Presorted STD
Page 6
US Postage PD
Burlington, VT
Permit #478
Yankee recently participated in a FarmStart investment to Robbie Morrill of Milton, Vermont. Robbie is a
maple producer operating as R. Sweet Maples.
Robbie, age 19, began at an early age setting up 900 taps on neighboring land and building a sugarhouse on
his parent’s land. He expanded to 4,000 taps on rented land for the 2012 season. He sells syrup both in bulk
and retail. In 2011 he started producing maple coated nuts and maple cream that he is selling at farmer's
markets and school functions.
Robbie was voted the 2010-2011 Vermont "Maple King" which entails many public speaking appearances at
maple events throughout the state. Robbie also works full time for CDL USA which is a maple sugaring
Welcome new employees….Richard,
equipment
sales companyAlyth
in St. Albans.
Need pix & info….
Robbie put his business plan together needing "Seed Capital" to get to his current 4,000 tap level. This is
where FarmStart came in. Robbie applied for $50,000 to cover the cost of a new evaporator, expanded
tubing system, and start-up costs for the 2012 season.
FarmStart assists beginning farmers and new cooperatives through their start-up years by providing working
capital investments of up to $50,000. Repayment of these funds is up to five years. FarmStart is envisioned as
For more information
a key element in the success of startup ag businesses. Recipients have the opportunity to develop a successContact
your local branch
ful credit record and to learn the discipline of effective cash flow management.
Tuition Reimbursement for Centerpoint Training Offered
or e-mail
Who is eligible? Farmers, forestry producers, fishermen, farm-related service businesses and cooperatives,
[email protected].
Red Wing Software is offering training
on their
CenterPoint
software March 12-14 in East Syracuse, NY. If you are a
generally
in their
first three farm
yearsaccounting
of business.
Yankee Farm Credit customer using this software, you may be interested in one or more days of this training. For details please go to
FarmStart
will schedule.
work withTuition
a Farm cost
Credit
adviser,
in financialhalf
management.
www.redwingsoftware.com, clickEach
on services
andparticipant
then training
is $200
perknowledgeable
day. We will reimburse
the
Advisers
stay in touch
participants
tofarmer
help them
follow through
with
their business
plan.
tuition cost for Yankee customers.
For qualifying
young,with
beginning
or small
customers
(including
FarmStart),
we will
reimburse
the full tuition cost. Please contact Ruchel in the Williston office at 800-639-3053 for tuition reimbursement. Participants will be reBusiness
plan:expense.
We’re looking for substance, not fluff. The business plan is a productive way for new busisponsible for their own hotel, travel
and meals
ness owners to demonstrate their ability to successfully use their FarmStart investment. Five key business
components
should
be included
in theAyer
plan.- Please
refer to guidelines, available in your local branch or from
FarmStart
Initiative
By Clara
Loan Officer
If you would like to purchase CenterPoint
farmonaccounting
software,
pleaseplan.
contact
one of our branch offices.
your adviser,
how to write
a business
Adam and Melissa Beaulieu, of Ryegate, VT are
tion office. Adam and Melissa are a great fit for the
FarmStart
program
because
they have
a strong
Free ag-specific
computer
software!
Yes! Red Wing Software,
America’s
premier
provider
of financial
Yankee’s newest
FarmStart
investment!
work
ethic and
passionate
about their
management software for agriculture, will provide CenterPoint
software
to are
FarmStart
participants
at nofuture
cost in
Do You Know What
Your
Modified
Gross
Income
(MAGI)
is for
farming.
The FarmStart
program
is designed to help
Adam
graduated
from Vermont
Technical
College
with the
purchase
of a Silver
LevelAdjusted
Customer
Care
Plan.
in 2010 and went on to be a herdsman at the Stuart startup farmers build credit history, sound financial
Insurance
Purposes??
To sum
up:inThe
goal of NH.
FarmStart
is to
working
helpbusiness
start-upmanagement
farmers establish
a positive
skillstoand
with the
help of
Farm
Stratham,
Melissa
hasprovide
a degree
in Ac- capital
business
and
credit
history
during
the early
careers.
Within
counting and worked for a CPA
out ofphases
col- of their business
their advisor
while
they five
beginyears,
theirrecipients
business.
No… don’t worry, you’re not alone!
We
help you
understand
should
becan
positioned
to
graduate
toincome?
a conventional
line of credit from Yankee or CoBank.
lege.
Adam,
Melissa
and their
two
children, Jabin
this….
and Lexi are excited to start their own family farm. Adam and Melissa are currently renting a dairy farm
Typically, tax-exempt income
will include
tax-exempt
interest
andout milking
in Ryegate,
Vermont.
They are
starting
According to the Health Insurance Marketplace
website,
foreign
income,
as well as35non-taxable
security
benefits
(also
cows with social
plans to
grow to
50 cows
through
Adam and
Melissa spent a good
portion
of 2013
HealthCare.gov, your modified adjusted planning
gross income
(MAGI)
above
theto
AGI lineinternal
of yourherd
Formgrowth.
1040EZ,FarmStart
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providing funds
for this
move,isfindingfound
the right
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Excludable
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includedairy
scholarships,
and start-up
your:
to purchase
cows andawards,
some other
rent, and talking with their FarmStart
Advisor,
fellowship
grants.JuncHowever, there may
be other items to add or
Adjusted Gross Income
Clara Ayer, a loan officer in the
White River
expenses.
The FarmStart goal is to prosubtract as well.
+ Certain Tax-Exempt Income
vide working capital and ena- Certain Excludable Items from Income
ble farmers to establish posiFarmStart was initiated by Farm For
Credit
East (FCE)
in includes
2005; in the
2008income
YankeeofFarm
(YFC)
began talkexample,
MAGI,
ALLCredit
members
in your
tive business and credit history
then officially
became
part
FarmStart
in January
of 2011.
FarmStart is
household.
So, the
income
ofof
any
dependents
(who are
required
Okay… so what are these you ask? ing about joining the program and
during the beginning stages of
owned by FCE (45%), CoBank (45%)
YFC
to fileand
a tax
return) must also be added or subtracted depending
their
career.
Within gross
five income (AGI) is your gross income less
Well,
your adjusted
on the item(s).
at Yankee,
are very proud of our
years,
FarmStart
certain
allowablerecipients
deductions. One wayHere
to calculate
thiswe
figure
a quick update
should
to at your prior FarmStart
wouldbe
bepositioned
to take a look
year’s tax involvement.
return to see Here’sStill
confused, or want to know more? Resources available include:
“graduate”
to
a
conventional
on
our
program:
what items your AGI included last year and estimate what those
line
of credit.
 9 Loan
Officers
items
will be for next year (2014). Depending
on the
form (at
youleast
file, one from
Theeach
Health Insurance Marketplace
office) are
FarmStart
your AGI will appear on: Line 4 of Form 1040EZ,
Linealso
21 of
Form Advisors
1-800-318-2596 or HealthCare.gov
To1040A,
learn and
more
about
 10 and
FarmStart
Investments
Line
37 ofFarmForm 1040. Includable
excludable
items in YFC territoStart,
visit yankeeaca.com.
If
ry, see
commodity
distribution.
of income,
as well as any allowable
deductions
youchart
may for
qualify
for,
The VT Health Connect
you are a current member and
 Approved investment amount of1-855-899-9600 or healthconnect.vermont.gov
will appear above these lines.
know someone who may be a
$500,000
good
fitwhat
for FarmStart
please income and excludable items from
Now,
about tax-exempt

Outstanding investment of $275,800
contact your loan officer.
Presorted STD
US Postage PD
Burlington, VT
Permit #478