August 2011
Miss America
Advocates for
Farmers
Doctors in Agriculture
Al Bellotto, Sr.,
Recognized by SWFWD
Visionary of Disneyesque
Proportions
Features
Leader
is published quarterly for stockholders,
directors and friends of Farm Credit of
Central Florida.
President
Reginald T. Holt
8
BOARD OF DIRECTORS
Al Bellotto, Chairman
David J. Stanford, Vice Chairman
C. Dennis Carlton
L. Baylis Carnes III
W. Rex Clonts, Jr.
Homer E. Hunnicutt, Jr.
John S. Langford
Robert R. Roberson
Lewis S. Stidham
Ronald R. Wetherington
EDITOR
Ron O’Connor, Director of Marketing &
Governmental Affairs
PUblisher
AgFirst Farm Credit Bank
PUblishing director
Donna Camacho
16
Dr. Luis Garda (left) and Farm Credit of Central Florida Apopka Loan Officer, David McDonald (right)
at the Tropical Plant Industry Expo (TPIE).
designers
Athina Eargle
Darren Hill
Amanda Simpson
Travis Taylor
PRINTER
Spectra True Colour
Circulation
Kathi DeFlorio
Address changes, questions, comments or
requests for copies of our financial reports
should be directed to Farm Credit of Central
Florida by writing P.O. Box 8009, Lakeland,
FL 33802-8009 or calling 863-682-4117.
Our quarterly financial report can also be
obtained on our Web site:
www.FarmCreditCFL.com
18
The John Arnold, Jr. Family
Table of Contents
INDUSTRY NEWS
The Spring Air is Always Full of Hope
Back Home in Gering, Nebraska­—Miss America
4
Understanding Diseases on your Turf and Ornamentals
5
Scenes from the Florida Citrus Industry Conference
17
Scenes from the Florida Nursery Growers and
Landscape Association Convention
20
Former Farm Credit Director Wins Award
at Citrus Conference
24
Fred Dietrich Wins Farm Credit/FCA Award
at Cattlemen’s Convention
24
Jennifer Parrish Wins Farm Credit/FNGLA
Young Nursery Professional Award
25
James M. Knox, Jr., Inducted into FNGLA Hall of Fame
25
Government and Agriculture: Partners in Progress
26
Scenes from the Florida Cattlemen’s Convention
27
Scenes from the Polk County Cattlemen’s Association
Ranch Rodeo
28
Central Florida Nurseries Recognized by
Greenhouse Grower Magazine30
Spring Fever in the Garden
31
ASSOCIATION NEWS
Employee Retirements—­Bencinic & Roberts
6
Thomas Dalton Takes the Reins as Brooksville’s Loan Officer
6
Carrie Clinard Chosen to Represent Rotary
6
Honors Grad!
7
Baby News
7
Joy Register is a Graduate!
7
New Employees
7
Three Directors Re-Elected to Farm Credit
of Central Florida Board
22
Farm Credit Supports Wedgworth Leadership Program
23
FEATURE
Al Bellotto, Sr., Recognized by SWFWD 8
Doctors in Agriculture
14
Visionary of Disneyesque Proportions
18
FINANCIAL NEWS
Temporary Tax Relief Provides Significant Planning
Opportunities for Small Business Owners
10
Tax Notes
30
Farm Credit to Offer QuickBooks Seminar
31
Second Quarter 2011 Consolidated Financial Reports
31
MEMBER NEWS
Photo taken by
John Langford
at the Circle B Bar
Reserve.
Farm Credit Members Inform Legislators about Agriculture
12
Congratulations to Farm Credit Members Re-Elected
to Citrus Mutual Board
13
Congratulations to Quarterly Drawing Winners
of a $100 Gift Card
13
Another Innovative Arnold
21
Birds of a Feather Hunt Together
29
August 2011 | 3
Industry News
The Spring Air is Always Full of Hope Back
Home in Gering, Nebraska—Miss America
T
his time of year, farmers plant
seeds in hopes for Mother Nature’s
cooperation and a successful harvest. Ranchers help birth the next generation of their herds and hope for fair market
prices. And workers at the local sugar plant
catch their breath after a busy winter and
hope for a bumper crop this fall so they can
do it all over again.
The Miss America crown that I’m so
honored to wear is a symbol of the hope and
optimism that gets us through each day. But
it also bears a responsibility to help people
who have so little of those things—not just
in the U.S., but abroad as well.
Unfortunately, there are far too many
with far too little right now. Families continue to battle a slow-moving economy here
in America, wondering if they can give their
children a chance at a better future while
they struggle just to pay their monthly bills.
Meanwhile, our friends overseas struggle to simply put food on the table after natu-
ral disasters in other parts of the world have
wreaked havoc on food supplies.
While considering ways to help these
circumstances, we end up right back on the
farm, and those tiny seeds that farmers are
currently planting suddenly seem to carry a
lot more weight.
This year’s crop has the potential to be
the most valuable in U.S. history, and that
translates to more jobs and stimulus for our
hurting economy. Further, the Federal Reserve
recently credited agricultural production with
helping lead the nation’s recession recovery, so
whether we live in New York’s Manhattan or
Manhattan, Kansas, we should all be rooting
for a good growing season.
Increased U.S. production would also
help ease the political instability and tensions
aided by food shortages in other parts of the
world. U.S. Agriculture Secretary Tom Vilsack
told Congress a few weeks ago that farming
and ranching will take the crown in record
exports this year if things go as planned.
If a small town girl from the Midwest can make it all
the way to Miss America, maybe she can help bring
America back to the Midwest.
Teresa Scanlan is Miss America 2011.
4 | August 2011
Of course, if years of involvement in
theater and pageants have taught me anything, it’s that things rarely go as planned.
U.S. producers will need more than a couple
of good harvests to make a difference globally because population is exploding—predicted to grow by 2 billion people in the next
40 years—and U.S. farm output will need to
expand substantially just to keep pace.
Can we feed a growing world population, fuel our economy, and still offer wholesome food choices to Americans? Sure, just
as long as we avoid weakening the very
infrastructure that makes it all possible.
As I write this, America has just
210,000 full-time farms. That’s it. And being
from an agricultural community, I know
these aren’t large corporations with giant
bank accounts. These are small businesses
with huge overhead expenses and a history
of modest profits.
Farming and ranching is expensive, and
the risks associated with it are unlike any
other profession, which is why we’re faced
with fewer and fewer U.S. producers to support more and more people.
Retired Army General Wesley Clark
recently called these men and women a “thin
green line standing between prosperity and
disaster.” This line, he said, must be held and
not weakened any further if America stands a
chance to combat the challenges ahead of us.
But, to do so will require a shift in thinking.
Modern-day agriculture has to do its
part in reaching out and teaching us about
what they do and how they do it. Educational
groups like The Hand That Feeds U.S. and
the U.S. Cattlemen’s Association are a good
start, but it’s not enough.
The rest of us must reconnect with our
rural roots and understand that we all have
a stake in the success of farmers and ranchers. Urban and rural America need to come
together, and I plan to spend my time as
Miss America to make that happen.
After all, I was Miss Nebraska first.
And if a small town girl from the Midwest
can make it all the way to Miss America,
maybe she can help bring America back to
the Midwest. ■
Farm Credit of Central Florida
Industry News
Understanding Diseases on your
Turf and Ornamentals
By Matt Lenhardt, UF/IFAS Citrus County Horticulture Extension Agent
T
he summertime in Central Florida
is generally hot and humid, making
it the perfect weather for many disease pathogens to cause a lot of damage
to our turf and ornamentals. According to
University of Florida research, there are
generally three main factors that contribute
to turf and ornamental disease outbreaks.
They are the environment, the host plant,
and the pathogen which causes the disease.
Environmental conditions include the right
temperature and moisture for pathogens to
thrive. The host is a susceptible plant that
will provide the food for that pathogen to
live. When the environmental conditions
are right and a suitable host is present for
a particular pathogen, a “disease pyramid”
is created allowing the pathogen to spring
into action infecting our turf, ornamentals,
fruits, and vegetables.
The three main types of pathogens
include f ungi, bacteria, and vir uses.
Fungi cause more turf and ornamental
disease than any other pathogen. Fungi
are simple organisms that obtain their
food by breaking down plant material.
Some fungi can be seen by the naked eye
as mold, spores, or mildews. For example,
if you’ve ever stepped on those brown
“puff balls” when you were little, the
brown “puff” you created was actually a
multitude of fungal spores being released
into the air. It is important to note that
not all fungi cause diseases. In fact, most
fungi exist naturally in our environment
Farm Credit of Central Florida
and are beneficial, if not crucial to our
existence, acting as decomposers of
organic matter in our environment.
Bacteria are simple one-celled organisms that can only be seen with a microscope. Not all bacteria are pathogens, but
the ones that are get their food from the
plants they infect through natural openings or wounds and can be very difficult
to control. Splashing water from overhead
irrigation or rain water is one of the main
ways bacteria are spread. Bacteria can
also spread pruning an infected plant,
then pruning a healthy plant with infected
pruning shears
Viruses are much smaller than fungi
or bacteria and require a microscope to
be seen. They cause more damage to food
crops than ornamentals. Viruses depend on
insects like aphids, thrips, or other vectors
such as mites and nematodes to invade or
feed on a host plant, thus transmitting the
virus into that plant.
In general, using proper cultural
practices to maintain a healthy plant is
the best way to help prevent and manage
disease outbreaks. Here are some tips from
the University of Florida to help reduce
pathogen problems:
• Many pathogens are found naturally in
the soil, so avoid irrigation that causes
water to splash up from the soil. Try
micro-irrigation as an alternative to
overhead watering.
• Avoid overnight watering of turf if
possible. Irrigation combined with
dew on turf keeps turf foliage wet for
several hours, creating a good environment for disease development.
Irrigate turf starting in the early morning hours if possible.
• Put the “right plant in the right place”.
This term refers to creating a landscape that has Florida Friendly plants
that are better adapted to your areas
natural conditions.
• Apply fertilizer at recommended rates.
Over fertilization can increase insect
and disease populations.
• It can be difficult to identify the
cause of unhealthy turf or ornamentals. Proper identification of a disease is critical before treatment. If
help is needed, refer to your County
Extension Agent for assistance and
recommendations. ■
All programs and related activities sponsored for, or assisted by, the Institute of
Food and Agricultural Sciences are open
to all persons with non-discrimination with
respect to race, creed, color, religion, age,
disability, sex, sexual orientation, marital
status, national origin, political opinions,
or affiliations.
August 2011 | 5
Association News
Employee Retirements
Kathleen Bencinic
Retires After More Than
13 Years of Service
Michele Roberts
Retires After 25 Years
of Service
Michele Rober ts retired on June 30,
2011 as Farm Credit of Central Florida’s
Controller after 25 years of dedicated service. “Michele proved herself as a reliable
and valuable employee and steadily moved
up the Farm Credit ladder after joining the
association as an Office Assistant,” said
Reggie Holt, President and CEO of Farm
Credit of Central Florida. ■
Farm Credit of Central Florida Executive
Assistant, Kathleen Bencinic has decided
to retire after more than 13 years of loyal
and devoted service to the association. She
began her career as the Receptionist and
earned promotions to her current position
through hard work and consistently superior work.
“Thirteen plus years ago I re-entered
the workforce out of boredom. I was looking for something simple and easy to fill
my time after retiring from collecting real
estate and wage taxes in Pennsylvania.
Interviewing for a receptionist job at Farm
Credit was one of the best decisions I could
have made.
I was hired in December of 1997 and
soon found I was working with a very
warm and friendly group of dedicated and
caring people. I also found I was a little
bored again just answering the phone so
I began looking for more to fill my time.
Over the years I acquired quite a number
of responsibilities and was eventually promoted to Administrative Assistant and then
Executive Assistant. Through the years I
have assisted the administrative, auditing,
marketing and special assets departments.
I have been fortunate to have worked with
some very special and exceptional people
in each of those departments. I feel truly
blessed to be a part of the Farm Credit
Family,” Kathleen said. ■
Carrie Clinard
Chosen to
Represent Rotary
Fa r m C r e d it of
Central Florida
Commerical Credit
Analyst, Car rie
Clinard, was chosen
from entries around
the Rotary District to
have her image and
bio used in ads promoting the civicMaster’s
club. Carrie
is a member
Degree.
Analyst.
of the LakelandFinancial
Rotary Club
and played a
Studied in France.
Rotary is 1.2 million
ordinary menthe club’s
vital role in successfully
starting
and women working together to
accomplish extraordinary things.
latest fundraiser.
Rotary clubs are dedicated to
fighting hunger and poverty around
Congratulations
the world. to Carrie! ■
Learn more at rotary.org.
6 | August 2011
Carrie Clinard is a third generation
Rotarian and a member of
Lakeland Rotary Club
Thomas Dalton
Takes the Reins
as Brooksville’s
Loan Officer
Thomas Dalton, a Farm Credit of Central
Florida Credit Analyst since 2007, has been
named Commercial Loan Officer/Assistant
Vice President in the Brooksville Service
Center. “I enjoyed my time as a credit analyst, but relish the opportunity to interact
on a personal level with our Customers.
The experience I gained in my previous
position will allow me to better understand
how to expedite the underwriting process
and help Members receive their loan proceeds faster. I can help them in submitting
their financial information in a concise
manner which will greatly expedite the
loan process,” Thomas said.
Thomas is married to Maggie and the
couple has two children, Kristine, 4 and
Michael 3. He is a native Floridian, born in
Eustis, and served our country in the U.S.
Navy from 1992-1998. He earned his B.A.
degree from the University of South Florida
in 2002 in Management with a Minor in
Economics, and his MBA in 2004. In his
spare time Thomas enjoys golf and fishing.
Thomas can be reached at (352) 5445553, or E-Mail TDalton@FarmCreditCFL.
com. The Brooksville ser vice center
is located at 31081 Cor tez Blvd. i n
Brooksville, Florida 34602. ■
Jillian Green (Left), daughter of Andrea, & step
daughter of Ron O’Connor is congratulated
by Dr. Deborah German (Right), Dean of
the University of Central Florida’s College
of Medicine after receiving her white coat,
symbolizing acceptance into UCF’s Medical
School. Jillian graduated with high honors with a
degree in biology from the University of Florida.
Farm Credit of Central Florida
Honors Grad! Baby News
Congratulations to all
of our new parents!
J
osey Marie Brown, the daughter of
Rick and Bryna Brown, has achieved
the first major milestone in her life,
her High School Graduation. She graduated from Lakeland’s Tenoroc Senior High
School on June 7, 2011. She graduated in
the top 20 of her class with National Honor
Society, Science, and Student Government
Association cords. In addition, she was
a Silver Garland nominee in the science
category. She has participated in the dual
enrollment program with Polk State College
and was a cheerleader at Tenoroc Senior
High and is now the Student Government
Association vice president there. Josey
has plans to further her education at The
University of Southern Mississippi and
become a trauma nurse to help those in
need. Josey has made her parents and all of
us at Farm Credit extremely proud of her
by her successes and the dreams she has
for her future.
Rick Brown is the Collateral Evaluator
for Farm Credit of Central Florida. ■
Jay and Jessica Slaughter are pleased
to announce the arrival of their newest
family addition, James Liam Slaughter on
March 24, 2011 at 11:43 p.m. He weighed
3 lbs 14 oz.
Joy Register is
a Graduate!
J
Michael and Brittany Lopez welcomed their
little bundle of joy, Gracie Lynn Lopez into
the world on April 20, 2011. She weighed
6lbs, 13 oz. and measured 20.25 inches.
oy Register received her AA degree
from Pasco Hernando Community
College and Graduated with honors on
May 4, 2011. “Thank You!!! To my family
for your encouragement and for being so
supportive while I was working toward my
degree, with many late nights and weekends studying, along with working full time
didn’t leave much time for anything else. I
always loved getting the call from my parents to stop by their house to pickup dinner.
There were many times I thought I just
don’t have the time for this, but I managed
to make it through,” said the new graduate.
Congratulations, Joy! ■
New Employees
Grant Handley
Alvaro Puyo
Farm Credit of Central Florida
Annie Sullivan
Judy Waters
Jeremy Williams
August 2011 | 7
Feature
(From the left) Grandson Al Bellotto III, known as Trey, Daughter-in-Law, Chanel Bellotto, Daughter, Chere Campbell, and wife, Betty (Right), enjoy the
natural beauty of the Circle B Bar with Al Bellotto, Sr. (second from right).
Al Bellotto, Sr., Recognized by SWFWD
T
he Pol k C ou nt y C at t le me n’s
Association and the Southwest
Florida Water Management District
(SWFWMD) recently recognized Farm
Credit of Central Florida’s Chairman of the
Board, Al Bellotto, Sr., for his long time
support of conservation. Bellotto, a Polk
County cattleman, and citrus grower, sold
part of his Circle B Bar Ranch in 2000 to
Polk County and SWFWMD. Today the
property is a haven for wildlife enthusiasts
and is known as the Circle B Bar Reserve.
The property includes 1,275 acres on
Lake Hancock and is home to a plethora
of wildlife including, alligators, wading
birds, eagles, and otters. “Agriculture and
conservation go hand in hand. The land is
the most valuable asset a rancher or grower
has and to spoil it in any way would be
foolish,” Bellotto said.
Bellotto, a World War II veteran, has
been involved in agriculture most of his
life. “I began with one cow I bought from
my Dad with money I earned working in
a local nursery on weekends. With the
expanding population of Polk County and
our country in general, things have changed
dramatically. I can remember driving cattle
8 | August 2011
down US 27 and the Highway Patrol would
stop traffic until we got by,” Bellotto said.
His motto is, “You can be a cowboy,
but you still have to go to town.” He is
alluding to the need to be involved in the
political process and to be unafraid of
assuming a leadership role, sacrificing personal goals and time for the greater good, in
various agricultural organizations. Bellotto
has certainly adhered to his motto. He is
past President of the Florida Cattlemen’s
Association; the Polk County Cattlemen’s
(From the left) Charles Cook, President of the Polk County Cattlemen’s Association and Albert
Joerger, a member of the SWFWMD’s District Governing Board congratulate, Al Bellotto, Sr.
(center) on his recognition.
Farm Credit of Central Florida
“Agriculture and conservation go hand in hand. The land is the most valuable
asset a rancher or grower has and to spoil it in any way would be foolish,”
Association and has twice chaired the
Florida Beef Council board. He served
as chairman and director on the board
of AgFirst Farm Credit Bank and is still
Chairman of the Farm Credit of Central
Florida Board of Directors.
He was President and a Director of the
Polk County Farm Bureau Board, a Director
of the Citrus Showcase Board and a trustee
of the Florida Agricultural Museum. He also
served as Vice President of the Farm Credit
Funding Corporation Board.
He is known as a pioneer in the cattle
industry having been an early adopter of
freeze branding and invented the doubledecker cattle trailer to maximize capacity
in transporting cattle, while reducing traffic on our roads. All of these achievements
pale in comparison to his leadership in
garnering support for the Beef Checkoff
Program. The initiative had failed twice
previously, but Bellotto, seeing the benefit
to using the money to promote beef, traveled the state tirelessly to convince his
peers to approve the measure. It passed
and today generates the necessary funds to
promote Florida’s vital beef industry.
“The District’s Basin Board Land
resources Committee wanted to recognize Al Bellotto for supporting land preservation,” said Albert Joerger, District
Governing Board member. “Thanks to his
support, the Circle B Bar Reserve is an
important environmental asset that serves
as a popular recreation area for the residents
of Polk County, and it will be preserved and
protected for future generations.”
John Langford, a Farm Credit of
Central Florida Director and a connoisseur of natural beauty, addressed the
SWFWD Board at the ceremony to honor
Mr. Bellotto. Here are his comments on Al
Bellotto’s award.
“I want to than k the SW FW MD
Board for allowing me a few sentences
before you today.
My good friend Al Bellotto offered me
the opportunity to thank all of you publicly
for developing his treasure into the park that
it is today. Al told me that he made numerous trips to New York City to serve on the
Funding Board for the Farm Credit System.
Farm Credit of Central Florida
While there, he visited Central Park and
was struck by the beauty and accessibility
of it. That urban masterpiece inspired Al to
imagine that his Circle B Bar Ranch, this
magnificent collection of ecosystems and
wildlife, could serve similarly the rapidly
urbanizing Polk County. Within a few minutes drive of the main population centers of
the County now lies this park. Al tells me
that it was a tough thing to convince everyone of his vision, but through the determination and perseverance that Al is known for,
he got his point across, he said.”
“My wife, Mary K, and I come here
about once a week. I have taken thousands
of photos of dozens and dozens of species
of birds, otters, pigs, snakes and turtles,”
John said.
“We meet other photo enthusiasts,
families on bikes, couples with binoculars,
and school children on field trips. All come
here to see the truly phenomenal mix of
wildlife, and experience the serenity of this
piece of old Florida,” Langford observed..
“We have traveled over five continents
photographing wildlife. No place is better
than the Circle B Bar for variety, consistency and surprise. We read a recent Ledger
article that says people have come here
from as far away as Australia specifically
to see what’s here,” he said.
“Thanks to the SWFWMD Board and
to Polk County for developing and managing this marvelous resource. Most of all,
thanks to you Al, to you and your family
for having the foresight and the generosity to part with your beloved ranch so that
my family and all families could enjoy its
unique features,” Mr. Langford said.
The buildings comprising Polk’s
Nature Discovery Center are open Tuesday
through Saturday from 9 a.m. until 4 p.m.,
but the nature trails are open from dawn to
dusk. For more information on the Circle B
Bar call (863) 668-4673 Ext. 203.
John Langford agreed to share some of
his most impressive photography, all taken
at the Circle B Bar Reserve. At the right
are some of the stunning photos captured
by John Langford’s keen eye and are representative of the diversity of wildlife at the
Circle B Bar. ■
August 2011 | 9
Financial News
Temporary Tax Relief Provides
Significant Planning Opportunities
for Small Business Owners
By Richard I. Withers, Esq.; Robert J. Naberhaus, Esq.; and Michael D. Minton, Esq.
J
ust when it looked like a return to
the tax laws in effect prior to the
enactment of the so-called “Bush
Tax Cuts” was inevitable (see Back to
the Future for Estate Tax Planning, Farm
Credit Leader, December 2010, at 14-15),
Congress and the President gave taxpayers
an early Christmas present. On December
17, 2010, President Obama signed into law
the Tax Relief, Unemployment Insurance
Reauthorization and Job Creation Act of
2010 (the “2010 Act”), which extends the
benefits of the Bush Tax Cuts through 2012
and provides significant estate planning
opportunities for owners of family businesses (especially those in agriculture).
These opportunities, however, are only
available for a short time because the provisions of the 2010 Act are set to expire on
December 31, 2012, at which time the tax
laws in effect prior to the Bush Tax Cuts
will be resurrected (absent further action by
Congress). This article describes the more
significant tax changes effected or continued by the 2010 Act and briefly discusses
some of the ways in which small businesses
can take advantage of these changes.
Extension of 2010 Tax Rates. The
2010 Act extends the lower income tax rates
(10%, 15%, 25%, 28%, 33% and 35%), capital gains tax rates (maximum of 15%), and
10 | August 2011
qualified dividend tax rates (maximum of
15%) through 2012.
Transfer Tax Provisions. The 2010
Act provides for a combined $5 million
exemption from gift and estate tax, and
provides a $5 million exemption that can be
allocated to generation-skipping transfers
(transfers made during life or at death that
are to or for the benefit of a person more
than one generation below the generation
of the donor). Additionally, the 2010 Act
reduces the tax rate applicable to transfers in
excess of the $5 million exemption to 35%.
The 2010 Act also introduces a new
planning opportunity referred to as “portability.” Portability allows the personal
representative of a deceased spouse’s estate
to make an election on a timely filed federal
estate tax return to transfer the deceased
spouse’s unused estate tax exemption to
the surviving spouse. The surviving spouse
can then use the unused exemption of the
deceased spouse to make additional gifts
during life or at death that are exempt from
gift or estate tax. The deceased spouse’s
exemption from generation-skipping transfer tax, however, is not portable.
Without further action by Congress,
the 2010 Act will sunset and the exemptions and rates in effect prior to the Bush
Tax Cuts will again become effective on
January 1, 2013. This means that the gift
and estate tax exemptions will revert to
only $1 million, the generation-skipping
transfer tax exemption will decrease to $1
million, but will be indexed for inflation
since 1997, and the maximum tax rates will
increase to 55%.
Bonus Depreciation. Under the 2010
Act, bonus depreciation was increased
from 50% to 100% for qualifying assets
placed in service between September 9,
2010 and December 31, 2011. Qualifying
property generally includes property eligible for depreciation with an applicable
recovery period of 20 years or less, computer software covered by Section 197, and
qualified leasehold improvement property.
For qualifying property placed in service
during 2012, the 50% depreciation rules
will again apply.
Energy Incentive Credits. The 2010
Act extended a number of energy incentive
credits for businesses, including credits for
biodiesel and renewable diesel fuel, credits for refined coal facilities, new energy
efficient home credit, excise tax credits/
outlay payments for alternative fuel and
fuel mixtures, and grants for certain energy
property in lieu of tax credits.
Pay rol l Tax Hol iday. I n 2011,
employees would have been required to
pay a social security tax of 6.2% of their
wages up to $106,800 and a Medicare tax
of 1.45% on an unlimited amount of taxable earnings. The employer is required to
pay a matching amount. Under the 2010
Act, the employee (not employer) portion
of the social security tax is temporarily
reduced from 6.2% to 4.2% for 2011 only.
Individuals subject to the self-employment
tax will also receive the 2% tax reduction
(their rate will be a combined 13.3% instead
of 15.3%).
Increase of Section 179 Expensing
and Expansion to Certain Real Property.
The tax changes effected by the 2010 Act
are in addition to those enacted in the
Farm Credit of Central Florida
Small Business Jobs Act of 2010, which
was signed into law on September 27, 2010
(the “2010 Small Business Act”). Under the
2010 Small Business Act, for taxable years
beginning in 2010 and 2011, taxpayers may
write off up to $500,000 of the cost of qualifying property placed in service during
those taxable years, subject to a phase-out
once these expenditures exceed $2 million.
Additionally, the definition of qualifying
property was expanded so that taxpayers
may expense up to $250,000 of the cost of
qualified leasehold improvement property,
qualified restaurant property, and qualified retail improvement property placed
in service during 2010 and 2011. The 2010
Act also extends Section 179 expensing for
2012, but reduced the deduction limitation to $125,000 of the cost of qualifying
property placed in service during 2012,
subject to a phase out once the expenditures
exceed $500,000. In 2013, the Section 179
expensing limitations will revert back to a
$25,000 maximum deduction with a phaseout beginning at $200,000.
Opportunities. The 2010 Act has
ushered in a new era of tax planning
opportunities for small business owners
that are positioned to take advantage
of the temporary tax relief provisions
in the next two years. Business owners
should consider ways to accelerate the
recognition of income, capital gains and
dividends, where possible, before the tax
rates increase in 2013. Additionally, business owners who have been holding off
on purchasing qualifying property should
consider making those capital expenditures
in the next two years and taking advantage
of the opportunity to fully depreciate or
expense those costs in the year of purchase.
Furthermore, business owners considering
making investments in energy production
should consider how they might structure
those investments to take advantage of the
myriad energy incentive credits that have
been extended through 2012.
Probably the greatest opportunities
can be found in the increased exemptions
and reduced rates provided with respect
to the gift, estate and generation-skipping
transfer taxes. The increased gift and
estate tax exemption gives family business
owners a unique opportunity to make significant transfers either outright or in trust
to subsequent generations without incurring any transfer tax. As discussed above,
Farm Credit of Central Florida
single individuals can transfer up to $5
million in assets and married couples can
transfer up to $10 million in assets without
incurring gift or estate tax. Additionally,
if such transfers are made to trusts, then
generation-skipping transfer tax exemption can be allocated to the transfers and
the trust can survive exempt from transfer
tax for up to 360 years.
Furthermore, the increased exemptions and reduced rates can be coupled with
other estate planning techniques to further
minimize the transfer tax liability of family
business owners. For example, a decedent’s
estate may elect to value real property used
in farming operations or other closely-held
small businesses at its special use valuation (rather than at its highest and best
use value). Providing that a farming or
closely-held small business qualifies, this
election allows for a reduction in the valuation of qualified real property included in
the decedent’s gross estate by a maximum
amount of $1,020,000 for 2011 (indexed
annually for inflation). Additionally, qualifying small business owners may take
advantage of valuation discounts (e.g. discounts for lack of control and lack of marketability) when transferring interests in
their business either during life or at death.
Such discounts can result in the transfer of
a family business at values greatly reduced
from the value of the underlying assets of
the business. As an added benefit, recent
case law and Private Letter Rulings show
that the special use valuation is calculated
after considering any applicable valuation discounts. This allows for layering of
discounts and deductions by first taking
into account valuation discounts and then
further reducing the value of the estate by
any reduction attributable to a special use
valuation. A properly structured estate and
business plan that takes advantage of the
2010 Act, and the other planning techniques
described above, can achieve the transfer
of a family business with a value in excess
of $20 million to subsequent generations
with little, if any, estate, gift or generationskipping transfer tax.
The window of opportunity to take
advantage of these planning techniques
and the increased exemptions is only two
(2) years, so it would be prudent to review
your current estate and tax plans now
with a qualified estate and tax attorney
or accountant. ■
About the Authors:
Michael D. Minton
is president and a
shareholder of Dean
Mead. He practices
in the area of Federal
income, estate, and
gif t t ax law and
family business
succession planning. In addition, he has
developed a particular interest and special
knowledge in agricultural and resource
management law. Mr. Minton is the Past
Vice Chairman of the Governing Board
for the South Florida Water Management
District. He may be reached at mminton@
deanmead.com.
Robert J. Naberhaus
III is Of Counsel at
Dean Mead where
he practices in trust
and estate planning
and administration.
He is board certified
in wills, trusts and
estates law. Mr. Naberhaus also concentrates his practice in the areas of fiduciary
representation, business succession planning, generational planning, charitable
planning, guardianship and probate litigation. He may be reached at RNaberhaus@
deanmead.com.
Richard I. Withers is
an Associate at Dean
Mead. He practices in
the area of estate planning, business succession planning, probate
and trust administration and tax planning
for businesses and individuals. He may be
reached at [email protected].
August 2011 | 11
Member News
Farm Credit Members Inform
Legislators about Agriculture
Farm Credit and Florida agriculture have been partners in progress
for almost a century. Now, more than ever, it is critical to explain
to our mostly urban legislators at every level, about agriculture and
its needs. Farm Credit of Central Florida can be proud of the high
level of involvement its Members have with elected officials from
local to national. Here are some photos to illustrate their travels. ■
(From the left) Farm Credit of Central Florida President & CEO, Reggie
Holt; Director Rex Clonts, Jr.; Senator Bill Nelson; and Board Vice
Chairman, David Stanford
(From the left) Farm Credit of Central Florida Member, Jerry Shoop, State
Senator Jim Norman, Billy Kempfer, State Representative Greg Steube
(From the left) Sumter County Ag Alliance Chairman, James Sutton; Ed
Dillard; Congressman Rich Nugent; and Farm Credit Member, Dale McClellan
(From the left) Cary Lightsey, Representative Joe Gibbons, Farm Credit of
Central Florida Member, Herb Harbin
Farm Credit of Central Florida President & CEO, Reggie Holt (left) and
Director Homer Hunnicutt, Jr. (right) present a PAC check to Congressman
Rich Nugent (center).
(From the left) Past Florida Cattlemen’s President Mike Milicevic; Florida
Senate Ag Committee Chairman, Gary Siplin; Past FCA President, Wade
Grigsby; Dr. Geoffrey Dahl, IFAS
12 | August 2011
Farm Credit of Central Florida
Congratulations to
Farm Credit Members
Re-Elected to Citrus
Mutual Board
Farm Credit of Central Florida Director, W.
Rex Clonts, Jr. along with fellow Farm Credit
Members, David Evans , Oviedo, George
Neukom, III of Zephyrhills, Richard “Ric”
Freeman of Winter Garden, Raymond “Bo”
Bentley, Jr. of Winter Haven, and Victor Story,
Jr. of Lake Wales were re-elected to the Citrus
Mutual board for the 2011-2012 season. ■
(From the left) Florida Commissioner of Agriculture, Adam Putnam;
Farm Credit of Central Florida President & CEO, Reggie Holt;
Congressman Dennis Ross; State Representative, Rich Glorioso of
Plant City; and State Representative Seth McKeel of Lakeland
Rex Clonts, Jr.
(From the left) UF-IFAS Vice President, Jack Payne; Brevard County
cattleman, Billy Kempfer; State Senator, Thad Altman of Melbourne; and
Brevard County Commissioner, Robin Fisher
Congratulations to
Quarterly Drawing
Winners of a
$100 Gift Card
K
udos to Frank Drury of DeLand, and Terrence Schrader
of San Antonio, Fla. for having their names drawn as the
past two winners of a $100 gift card from the association. Farm Credit
of Central Florida
Customers receive
Customer Satisfaction Survey
a survey following
loan closings. Each
quarter a drawing
is held from the
completed surveys
to determine the
winner. It pays to
participate! ■
This customer satisfaction survey is provided to help us better meet the needs of our customers. Your input
is very important to us. Please return this survey using the enclosed envelope so that we can better evaluate
and improve our services.
You can also respond electronically to this survey at www.FarmCreditCFL.com/customersurvey.htm
1. Are you a new, existing or previous Farm Credit customer?
❑new
❑existing
❑previous
Congressman Ross (center) at the association’s Lakeland office receiving
a Farm Credit PAC check. (From the left) Farm Credit of Central Florida
Directors, Baylis Carnes III; John Langford; Al Bellotto; Ron Wetherington;
Dennis Carlton; and CEO, Reggie Holt
❑Farm Credit Member
❑Farm Credit Employee
❑Farm Credit Meeting
❑Newspaper
❑Other
❑Rate
❑Loan product selection
❑Easy/quick application process ❑Confidence in originator
❑Existing member
❑Referral recommendation
❑Other
❑N/A
❑Below Avg.
❑N/A
9. Do you have any comments or suggestions to improve
our services? ________________________________________
❑Average
❑Below Avg.
❑N/A
4. Was your loan officer prompt in dealing with your requests
or concerns?
❑No
Comments: ___________________________________________
_____________________________________________________
_____________________________________________________
5. Your loan closed:
❑Sooner than expected
❑When expected
❑Later than expected
Comments: ___________________________________________
_____________________________________________________
_____________________________________________________
_____________________________________________________
Farm Credit of Central Florida
❑No
❑Below Avg.
Receptionist:
❑Yes
❑Yes
❑Average
❑Average
Loan Assistant/Analyst:
❑Above Avg.
8. Will you recommend Farm Credit to others?
If no, please explain: ___________________________________
_____________________________________________________
_____________________________________________________
_____________________________________________________
Loan Officers:
❑Above Avg.
❑N/A
7. What was your main reason for choosing Farm Credit?
❑Internet
❑Farm Credit Director
❑Realtor
❑Magazine
3. How would you rate the Farm Credit employees you dealt
with in terms of knowledge about our products and
service to you?
❑Above Avg.
6. Did your loan officer discuss Farm Credit’s crop
insurance and AccountAccess programs with you?
❑Crop Insurance ❑AccountAccess
2. How did you hear about Farm Credit?
_____________________________________________________
_____________________________________________________
_____________________________________________________
_____________________________________________________
10. Do you know of someone in need of financing at
this time?
❑Yes
❑No
If yes, please provide name and phone number: ___________
_______________________________________________
_______________________________________________
Loan Officer’s Name (optional): _______________________
Your Name (optional): _______________________________
Your email address (optional): _________________________
__________________________________________________
Thank you for helping us improve our services to you. We
appreciate your cooperation and your business.
August 2011 | 13
Feature
Doctors in Agriculture
Dr. Faisal Fakih
Farm Credit of Central Florida Member,
Dr. Faisal Fakih, is an accomplished physician who is the Medical Director for
Florida Pulmonary Consultants and Sleep
Disorder Center in Winter Park. Inspired
by his friend and fellow physician, Dr.
John Arnold, Dr. Fakih bought a frozen
out grove near Groveland, Florida, in 1993.
He immediately began to apply his healing
touch to restoring the grove to a productive
and profitable operation. He also acquired
an adjacent parcel of land to expand his
holdings to the current 120 acres.
Dr. Fakih was introduced to agriculture at an early age by his parents. His father
was born in a tiny village in Lebanon where
his family grew food for their own needs
and sold the remainder of their crop. The
family moved to Barranquilla, Colombia,
in Central America, where Dr. Fakih was
born, and where his father often told him
stories of the family farm in Lebanon. Dr.
Fakih earned his B.A. from the Universidad
de Zaragoza in Spain, and then served
his residency and fellowship at Tulane
University in New Orleans. He moved to
central Florida in 1979 and has never left.
He sees parallels between medicine
and raising citrus, “Taking care of trees
is like treating patients in as much as both
need certain nutrients, and you have to
fight diseases.” Dr. Fakih firmly believes
good planning and proper treatment is
essential to grow a healthy and productive
grove. “If you skimp on caretaking of your
grove it will eventually cost you,” he said.
Just as a doctor would consult medical journals to cure an illness in a patient,
Dr. Fakih read voraciously and gathered
volumes of k nowledge on the cit r us
industry before investing in his grove.
He has even pioneered a creative method
to help his trees survive some very harsh
Dr. Faisal Fakih
winters, escaping even sub-freezing temperatures for hours. “We have found the
tall stand of red cedar trees lining my
grove help protect our citrus trees from
freezes,” said Dr. Fakih. Additionally, he
has cleverly employed extended microjet
irrigation to protect the trees’ canopies
during freezing temperatures.
“Dr. Fakih, has been a Farm Credit
Member for approximately six years and
he is a pleasure to work with,” said David
McDonald, Dr. Fakih’s Loan Officer. Dr.
Fakih move to central Florida in 1979.
“My realtors, Julia Faye Rogers and Elaine
Vick, recommended Farm Credit of Central
Florida for financing,” he said.
Julia Fay Rogers, owner of Julia Faye
Rogers Realty, Inc., had this to say about rec-
“Taking care of trees is like treating patients in
as much as both need certain nutrients, and you
have to fight diseases.”
14 | August 2011
ommending Farm Credit of Central Florida
to her clients: “I have used Farm Credit in
the past and have never hesitated in recommending them to any of my customers and
friends. They have excellent programs,
competitive rates and their stock/participation program is an extra bonus. Most important is the knowledge and desire of the staff
to help each individual in their specific
needs and following tit through to the end.
I cannot say enough “good things” about
Farm Credit and was most happy, together
with my right-hand associate Elaine Vick, to
recommend it to Dr. Faisal Fakih.”
As a man who earns his living in a
very stressful environment making daily
life and death decisions, Dr. Fakih finds
working in his grove relaxing and often
invites friends out to his property to
unwind. He is also a man with a positive
outlook. “History has shown agriculture
will find a way to survive. I believe eventually a cure for the various citrus diseases
will be found,” he said.
Farm Credit of Central Florida
Dr. John Arnold, a
Lifelong Pioneer
As they say in the citrus industry, “The
Valencia doesn’t fall far from the tree!” In
other articles, we outline the innovative
genius of John Arnold, Jr., and his brother,
Rob. Interviewing their dad, Dr. John
Arnold, a retired interventional cardiologist, it is clearly evident where John, Jr.,
and Rob got their inspiration and knack for
innovation.
Dr. John Arnold was born in Winter
Garden, obtained his B.A. from Emory
University in Atlanta, GA. Subsequently, he
graduated from Emory University School
of Medicine, served a three-year internship
and residency at Grady Memorial Hospital
in Atlanta, followed by a fellowship in
clinical cardiology at Emory Hospital, then
was senior fellow in cardiology at Jackson
Memorial Hospital in Miami for training in
the cardiac catheterization lab.
The science of interventional cardiology allows heart patients to live normal,
productive lives by installing pacemakers,
stints, and cardiac catheters eventually
leading to open heart surgery. The original
mercury-zinc batteries that powered the
pacemakers had a productive life of about
two years necessitating additional surgical procedures to replace the spent power
source. Dr. Arnold had observed lithiumiodide batteries, that were used to light
remote Pacific runways for our military
planes in WWII lasted up to five times
longer. “I appealed to the pacemaker manufacturers my discovery and encouraged
them to use the longer lasting batteries,”
Dr. Arnold said. He could have obtained
a patent on his discovery, but rather than
delay implementation of his innovation,
he donated it to science so patients could
benefit immediately. “I really didn’t have
to think about it, I just believed it was the
right thing to do, to help patients,” he said.
That was just the first of his groundbreaking discoveries. Dr. Arnold designed
and patented the Left Ventricular Assist
device, or L-Vad, which replaced heart
transplants. “It eliminated the rejection
factor that often plagued transplant patients,
and required no steroids. “Former Vice
President Dick Cheney has one,” he said.
Dr. Arnold practiced medicine for 41
years before retiring four and half years
Farm Credit of Central Florida
Dr. John Arnold
“Agriculture has been my most satisfying hobby
and has turned into an enterprise and bonding
experience for future generations.”
ago. He was on the staff of several local
hospitals, but most of his work was at
Florida Hospital in Orlando. “My dad was
a dentist who grew up in a small farming
community in Northern Kentucky. He tried
various forms of agriculture as a hobby
without success until he became involved
in citrus. I helped him on the farm and it
became a contagion, but it helped build my
work ethic, which I have been able to pass
on to my family,” he said.
Dr. Arnold also sees similarities
between nurturing his citrus trees and
livestock to his career extending the lives
of ailing patients. He has observed certain
professionals entering the agricultural arena
and then exiting because it doesn’t provide
immediate gratification such as stocks, gold
or other investments. “Citrus takes seven
years to pay its way and as many as 10 years
to really make a profit,” he said.
Today, Dr. Arnold’s holdings include
almost 3,000 acres of citrus and cattle
land. “I built it all I myself, not one grain
of sand was inherited,” he says proudly.
“Good nutrition combined with early and
accurate diagnosis prolong life. Agriculture
has been my most satisfying hobby and has
turned into an enterprise and bonding experience for future generations,” he said. He
used Farm Credit to purchase some of his
holdings. There are currently no remaining
mortgages on any of his properties.
Dr. Arnold’s background in chemistry combined with his research into the
citrus industry led him and John, Jr., to
create and patent an irrigation system with
micro-jet emitters in 1990 that is still in
use today for cold protection and irrigation. “Understanding the physical chemistry of water was the key to inventing this
system,” he said.
Like his good friend Dr. Fakih, Dr.
Arnold and wife, Susan, still find visiting
and participating in the rural setting of his
citrus and cattle operation relaxing when
they want to get away from urban living.
Continued on next page
August 2011 | 15
Feature
Restoring People,
Plants, and
Automobiles
Dr. Luis Guarda, born in Viña del Mar,
Chile, and educated at the University of
Chile at Valparaiso, has been involved in
pathology and laboratory medicine for 29
of his 32-year career at Florida Hospital in
Orlando. In the past he occupied the position of Head of the Pathology Department
at Florida Hospital; currently, he is a senior
pathologist. He is also Associate Professor
of Pathology at the University of Central
Florida Medical School. The respect he has
garnered from his peers has resulted in several guest speaker invitations to scientific
meetings in Latin-American.
Pathology is the study of the essential
nature of diseases and especially of the
structural and functional changes produced
by them. He and his wife, Aurora, own
and operate Tropical Plants and Foliage
in Apopka which occupies about five of
a 15-acre site. Aurora’s experienced eye
developed as an interior design consultant
is a critical asset in developing marketable
material from the nursery.
Dr. Guarda recognizes some similarities in raising quality plant material and the
practice of medicine. “Nutrition, growth,
and metabolic principles are similar in
medicine and plants. When my son came
back from serving in Iraq, we bought the
Dr. Luis Garda
nursery for a retirement investment, entertainment, and potentially as income producing property,” he said. His skills as a
doctor have served him well in his nursery
incorporating some of the same safety and
handling procedures he learned in medicine
for handling pesticides and fertilizers.
His hospital schedule allows Dr.
Guarda to be present at the nursery most
afternoons and weekends. His wife, Aurora
handles the invoicing and oversees the daily
operations at the greenhouses. The nursery
specializes in container tropical foliage and
sells to customers, brokers, direct wholesalers and local flower shops.
The keen mind and manual dexterity that are prerequisites for Dr. Guarda to
excel at his chosen profession also serve
him well in pursuing his hobby of restoring classic Ford Model A automobiles from
1928, 1929, and 1930. “I was inspired from
seeing a lot of those cars as a child in Chile.
My aunt drove a 1928 Ford Model A,”
Dr. Guarda said.
Dr. Guarda and Mrs. Guarda have two
children and four grandchildren, ranging in
ages from one to 15 years. ■
“Nutrition, growth, and
metabolic principles are
similar in medicine and
plants.”
Dr. Luis Garda with his restored Model A Ford
16 | August 2011
Farm Credit of Central Florida
Florida Citrus Industry Conference • June 15–17 • Bonita Springs, FL
Industry News
Farm Credit of Central Florida
August 2011 | 17
Feature
The Arnold Family—(from the left) Julie; sons, Jason, Jackson, John Forrest, and Josh; and Dad, John, Jr., at Showcase of Citrus on Highway 27 near Clermont.
Visionary of Disneyesque Proportions
L
ocated, virtually in the shadow of
the House of the Mouse, 15 minutes West on U.S. Highway 27, the
Showcase of Citrus appears to passersby to
be a typical roadside citrus stand. Au contraire, my friend! Owned by John Arnold,
Jr., you can certainly purchase the luscious
traditional citrus products Florida is known
for, but the Showcase of Citrus offers an
interactive, one-stop entertainment venue
for kids from 3-103, for a fraction of the
cost of feeding the Mouse!
The 40-acre, U-Pick grove offers some
50 varieties for guests to choose from as
they select and pick their own fruit. In the
shop itself, summer visitors can refresh
with a tonsil-tingling orange juice slushy,
enjoy fresh squeezed orange or grapefruit
juice, or pour their own raw local varieties
of honey on tap in huge drums. If ice cream
is your passion the staff can hand-dip your
choice or you can choose one of their sev-
18 | August 2011
eral kinds of sherbet. During season they
also have citrus breads and baked goods.
For the more advent u rous, the
Showcase of Citrus also offers one-hour
safaris across the 2,500-acre ranch on the
World’s Largest Monster Trucks. Riding in
converted school buses, up to 60 guests can
climb the 12-foot staircase to a ringside seat
to take in the natural beauty of the Arnold
family’s ranch and wildlife including a pair
of water buffalo. John’s future vision for
the Showcase includes an alligator pit with
regular feedings and a chance to see these
giant reptiles as close as most want to get.
John, wife, Julie, and their four sons
work hand-in-hand as a team to operate the
multi-faceted facility. Each brings a special
talent to the table—Josh, 14, Jason, 13,
Jackson, 8, and John Forrest, 7. The boys
perform duties ranging from cutting fruit
samples, carrying fruit to customer’s cars,
to grove care and prepping the tour buses.
Their business plan is to create a comprehensive, 1-stop-shopping entertainment and
retail venue.
The Arnold’s agricultural operation
includes 250 acres of citrus groves for the
juice market; the fruit stand, U-Pick, and
Recently Picked grove operation; and AgriTourism offering regularly scheduled educational tours of the ranch on two “Monster
Swamp Buggys,” which are modified school
bus bodies mounted on soft, giant tires.
To that end, the family embarked upon
a two-month, 21-state, sojourn last summer,
to find the best possible values in artisanalproduced products for their retail operation
and compare operational strategies. They
visited 11 national parks and even climbed
Mt. Whitney. Famed comedian, Larry the
Cable Guy, even filmed a hog hunt on the
Arnold’s ranch for his History Channel
show, “Only in America.” Martha Stewart’s
mention of the Showcase of Citrus started
Farm Credit of Central Florida
Industry News
an avalanche of phone calls, so the Arnold’s
fame has spread nationwide.
A 1986 graduate of Emory University,
John, once had former President Jimmy
Carter as an adjunct professor in one of his
classes. During his college days he began to
visualize a retail store with a direct to retail
relationship between producer and customer. The store offers a plethora of products, most of which are homemade. “The
retail store furnishes a platform to bring
the public Florida-produced artisanal, small
batch products, with absolutely no artificial ingredients,” John said. John and his
family have traveled extensively to seek out
the tastiest products they can find including
a wide variety of jellies, marmalades, and
sauces to stock their store shelves.
Fa r m Credit of Cent ral Flor id a
Apopka Loan Officer Clay Wiggins said,
“John and Julie truly have a passion and
commitment to Florida agriculture. Their
innovative business model bringing agriculture and tourism together to educate
others about the benefits and importance of
Florida’s second-largest industry is not only
refreshing, but vital to the overall economy
of our state. It’s truly a pleasure to work
with the Arnold family and be a part of the
success of the Showcase of Citrus.”
The Arnold family on the Swamp Safari vehicle which is a converted school bus requiring a
12-foot ladder to board!
Bio-Solids and
Composting
John’s innovation and vision is not limited to the retail store. He is currently
working on a significant project unrelated
to the retail store, but with the possibility of adding additional revenue streams
and solving some pressing environmental
challenges for the disposal of wastewater and the residual solids. When fully
operational, a BTF (Biosolids Treatment
Facility) will be an integral part of the
farming operation. The project will clarify
and recycle wastewater for citrus irrigation, reducing the need to pump irrigation
water for the citrus from either the aquifer,
or surface water.
The BTF plant will also produce
a bio-solids based, registered fertilizer
with the USDA displacing dependence on
commercially produced synthetic fertilizers. Since 1986, the ranch has accepted
wastewater residuals from various municipalities in central Florida including the
Farm Credit of Central Florida
(From the left) John Arnold, Jr., his wife, Julie, and Farm Credit of Central Florida Apopka
Loan Officer, Clay Wiggins
City of Orlando. John has a patent pending
on a solar process to convert the residuals
from the wastewater into a product similar
to Milorganite, which is produced from
the sewage of the City of Milwaukee, WI.
That company is called Solorganics LLC
and produces activated sewage sludge. By
drying the bio-solid using solar heat instead
of burning fossil fuels to generate heat creates a tremendous energy savings that can
be passed on to the farmer.
Once dry the sludge is brought up
to 170 degrees without any external heat
source to stimulate microbial activity
and end up with an AA rated fertilizer
product with 6%-10% Nitrogen content.
Additionally, the cities supplying the sludge
pay a tipping fee to Solorganics creating
another revenue stream to maintain the
viability of the agricultural operation.
An offshoot of the BTF is the ability
to eventually accept shipments of expired
food wastes from retail food stores that will
be processed into ethanol. Once again, a
huge challenge is turned into a potentially
lucrative revenue stream from a product
retailers will pay to dispose of.
Having been a Farm Credit Member
for years, John had this to say about his
relationship with the cooperative,” Farm
Credit, unlike commercial banks, understands the complexities of my operation.
Farm Credit comes to visit me and see my
operation firsthand. The commercial banks
can’t beat their rates and the staff seems to
have similar backgrounds to mine.” ■
August 2011 | 19
Florida Nursery Growers and Landscape Association Convention • June 23–26 • Naples, FL
Industry News
20 | August 2011
Farm Credit of Central Florida
Member News
Another Innovative Arnold
“Innovation is the process of turning
ideas into manufacturable and marketable
form,” said Watts Humphrey, an IBM
software engineer known as “the father
of software quality.” Rob Arnold, a native
Floridian, and the younger brother of John,
and son of Dr. Arnold, also got the creative gene that seems to be inherent in the
Arnold family. As he watched a mosquito
spray truck killing the pesky little pests he
noted how the unit mounted on the back
of the truck released a blanket of mist and
thought about how he could adapt that to
the citrus industry.
Rob Arnold, also a graduate of Emory
University in Atlanta, is the owner of the
aptly named, Pioneer Ag Equipment LLC,
specializing in low volume sprayers for the
agriculture industry. With the advent of
greening and the need to control the psyllids that spread the disease, Rob set out to
create a sprayer that was mobile, efficient
and could provide faster more accurate
application of sprays to control the vector.
“The LV-8 sprayer emits a smaller,
more concentrated droplet, which creates a
more concentrated application of the active
ingredient you are spraying. It is similar to
aerial spraying, but with far better internal canopy penetration. Because of the
concentrated spray, the cost of chemicals
is reduced to one-sixth, and a grower can
cover five times the acreage in the same
amount of time,” Rob said.
Another benefit of the LV-8 is the
dramatic savings in water consumption
its low volume capabilities facilitate. With
a conventional sprayer, 1-200 gallons of
water might be necessary to mix the compound, but with the LV-8, only three gallons per acre are required. The LV-8 can
be mounted on a pickup truck, a trailer, or
pulled by a tractor and is easily portable
because it is fitted with a forklift-friendly
skid. “It can also be used to spray miticides,
fungicides and can be used on vegetables
and other crops,” Rob said.
The penetrating power of the LV-8 is
such that a grower can spray every other
middle and still cover all of their trees. Rob
currently has a patent pending on the LV-8
Farm Credit of Central Florida
Rob Arnold
and a modification that will incorporate a
fan system to increase propulsion of the
mist and provide even better coverage.
“The addition of the fan will put more
material where the grower wants it. We are
researching the name Vortec
for this model,” Rob said.
“One of my business
objectives is to contribute to
keeping the citrus industry
viable and through innovation, help to reduce production
costs,” Rob said.
Rob has earned so much
respect in the industr y he
was invited to make four presentations in Brazil and was
awarded a plaque by CurtisDyna Fog Ltd. recognizing him
as the Best Innovator in North
America from 2007-2010.
Rob became familiar with
Farm Credit through his Dad
and brother, who have had a
long standing relationship with
Farm Credit. “I started with Farm Credit
because my family had used them. They
have been there when we need them and
provide flexible terms,” he said. ■
August 2011 | 21
Association News
Three Directors Re-Elected to
Farm Credit of Central Florida Board
O
n April 14, 2011, Farm Credit of
Central Florida held its annual
stockholder’s meeting at the Lake
Mirror Center in Lakeland. AgFirst Farm
Credit Bank CEO Andy Lowrey delivered
the keynote speech.
Congratulations to David J. Stanford,
Ronald R. Wetherington, and L. Baylis
Carnes III on being re-elected to new
three-year terms to the Farm Credit of
Central Florida Board of Directors. “I look
forward to working with our Directors
and staff to deliver credit to our Members
at the lowest possible cost, and with the
personal service our Members have come
to expect since 1916,” said Al Bellotto,
Chairman of the Board. ■
The membership of Farm Credit of Central Florida re-elected (from the left) Ron Wetherington,
Baylis Carnes III, and David Stanford to new three-year terms.
Farm Credit of Central Florida Chairman of the Board, Al Bellotto, talks
with annual meeting keynote speaker, Andy Lowrey, CEO of AgFirst Credit
Bank in Columbia, S.C.
(From the left) Jeff Phillips, Keith Mixon, Michael Mancini
(From the left) Chet Peckett, Randy Strode, Robbie Roberson, Ric Freeman
(From the left) Faye Wetherington, Chass Bronson, Alice Carlton
22 | August 2011
Farm Credit of Central Florida
Farm Credit Supports
Wedgworth Leadership
Program
Kelly Petruco & Terry Thomas
Hugh & Drew Crawford
Ed Morrell & Rick Brown
I
have the g reat
fortune of directi ng one of the
premiere agricultural
leadership programs
in this country. Since
1989, when the idea
first was generated
Hannah Carter
within UF/IFAS of
the need for a leadership development program for the future
leaders of Florida’s agriculture and natural
resource industries, Florida agriculture has
enthusiastically and strongly supported this
idea as it became a reality. To date, over
200 individuals who represent the diversity of Florida’s geography and agriculture and natural resource industries have
participated in the Wedgworth Leadership
Institute for Agriculture and Natural
Resources and program alumni are taking
on increased leadership responsibilities
and impacting policy decisions within their
organizations, industries and communities.
T he success of t h is prog ra m is
completely due to the relationships built
within Florida’s agriculture and natural
resource industries, governmental and
educational entities and organizations
within the private sector. These relationships allow this program to go beyond any
programmatic and individual goals for
the program—with each class and each
seminar—we exceed expectations. This
continual strive for excellence to keep our
program not only relevant, but an extraordinary opportunity for participants cannot
be accomplished by myself, my team or
my program’s advisory council or alumni
board—it is the combined efforts of hundreds of individuals and organizations
who place a high value on this program
and it’s contributions to this industry.
One of those organizations and many
of those individuals are members and staff
of Farm Credit. Farm Credit has been a
great supporter of this program from the
beginning and we are so very grateful for
their role in our success. I am grateful to
the Farm Credit staff for giving up their
evenings to cook dinner for the majority
of classes that have gone through this program. For the past two years, this program
has been awarded a grant from the Douglas
D. Sims Fund for Rural Leadership that
is sponsored by the Farm Credit System
Foundation. These grant monies have
assisted in programming efforts at a time
that additional funds were needed due
to the economic downturn. It was Farm
Credit of Central Florida that alerted the
program of this opportunity and who supported our grant application. Farm Credit
has also stepped up and sponsored our
annual alumni meeting, which allows for
the continued networking and relationshipbuilding so vital to the continued growth of
our alumni association. In addition, individuals from Farm Credit have participated
in the program, served on the program’s
advisory council and alumni association
board of directors. The value that Farm
Credit places on this program is apparent
and greatly appreciated.
In my years directing this program and
as a faculty member specializing in leadership development, I have come to realize
that the most important facet of leadership
is the ability to build and sustain relationships. The Wedgworth Leadership Institute
for Agriculture and Natural Resources is
fortunate to have such a wonderful relationship with Farm Credit of Central Florida.
We have enjoyed 20 years of leadership
development within Florida’s agriculture
and natural resources and thanks to organizations like Farm Credit of Central Florida,
we look forward to 20 more! ■
Jeff Phillips & Wilton Simpson
Farm Credit of Central Florida
August 2011 | 23
Industry News
Florida Grower Editor, Frank Giles (left), presented Farm Credit of Central
Florida Member, Maury Boyd (center) the Citrus Achievement Award
trophy, along with Keith Griffith of Chemtura AgroSolutions.
Former Farm
Credit Director
Wins Award at
Citrus Conference
F
ormer Farm Credit of Central Florida Director, and current
Member, Maury Boyd received the 2011 Florida Grower
Citrus Achievement Award during a special presentation
last week at Florida Citrus Mutual’s Annual Conference. Boyd was
selected for the honor based upon his innovative foliar nutrition
program, which is credited for extending the productive life of his
groves infected with HLB.
Seeing the success of the program, other growers have adopted
Boyd’s approach. Many credit his nutritional and psyllid control
program as a bridge between today and a time when more permanent HLB solutions can be found. In short, he has given many
growers hope they can remain viable while science works on the
problem of this disease.
In accepting the award, Boyd thanked those who’ve worked
with him in developing the program, particularly his grove manager
Tim Willis and the researchers based at the UF/IFAS Southwest
Florida Research and Education Center.
Boyd is president of McKinnon Corporation based in Winter
Garden, Florida. ■
Editor’s Note: Our thanks to Frank Giles of Florida Grower for
providing this information.
24 | August 2011
Farm Credit of Central Florida Sr. VP, Regina Thomas (left) presents Fred
Dietrich the Farm Credit/Florida Cattlemen’s Association Outstanding
Rancher & Leadership Award.
Fred Dietrich Wins
Farm Credit/FCA
Award at Cattlemen’s
Convention
F
red Dietrich of Orlando was named the recipient of the
Farm Credit/Florida Cattlemen’s Association Outstanding
Rancher and Leadership Award at the FCA convention in
Marco Island, Florida.
Fred was an Agribusiness teacher for 30 years and has been
an auctioneer since 1969, often donating his time and services to
agricultural youth shows. He has also been a cattle rancher holding
many leadership positions in the industry; President of the National
Polled Santa Gertrudis Association, Santa Gertrudis Breeders
International, President of the Orange County Farm Bureau, and
President of the Orange County Cattlemen’s Association.
Farm Credit is pleased to honor the cattle industry’s leaders
and congratulates Fred Dietrich for this coveted recognition! ■
Farm Credit of Central Florida
James M. Knox, Jr.,
Jennifer Parrish
Inducted into
Wins Farm
FNGLA Hall of Fame
Credit/FNGLA
Young Nursery
M
Professional Award
F
arm Credit of Central Florida Apopka
Loan officer, Jennifer Parrish was
named the 2011 recipient of the Farm
Credit/Florida Nursery Growers Landscape
Association’s Young Nursery Professional of
the Year at the FNGLA convention in Naples.
A native Floridian, who grew up on her family’s nursery in Broward County,Jennifer is
Jennifer Parrish
a 2003 University of Florida graduate with a
degree in Environmental Horticulture.
Jennifer has brought her high-octane enthusiasm to every task
she tackles and is widely known in the nursery industry for her
hands-on, let’s get it done approach. Among the many hats she has
worn on behalf of the nursery industry include 2007 President of
the FNGLA’s Action Chapter and currently involved on many fronts
including service as the Action Chapter’s alternate to the FNGLA
board of Directors.
In her free time she stays active by playing roller derby and
getting involved in crazy races such as Muddy Buddy and the
Warrior Dash. She also loves spending time with her family and
boyfriend as well as her two kitties.
Congratulations to Jennifer Parrish! ■
r. James M. Knox, Jr. father of Bruce and Monty Knox,
and husband of Nada was inducted into the Florida
Nursery, Growers and Landscape Association’s Hall of
Fame at the recent FNGLA convention. Monty and Bruce accepted
the award on Mr. Knox’ behalf.
“Mom and Dad started the family nursery business in their
backyard. Today it is one of the top 100 nurseries in the country.
Dad had no previous nursery experience and performed all of the
tasks the business required initially,” Monty said.
“Determination and his doctorate from the school of hard
knocks was all he had to rely on at first, but he never lost sight
of the importance of providing quality material and service to his
customers,” Monty said.
Farm Credit is proud to play a role in the growth and success
achieved by Knox Nursery. Congratulations to Mr. Knox on this
richly deserved honor! ■
Farm Credit of Central Florida Members, Monty (left), and Bruce (right)
Knox accept their father’s plaque to commemorate his induction into the
FNGLA Hall of Fame.
Wes and Vickie Parrish accept the Farm Credit/FNGLA Young Nursery
Professional Award from FNGLA’s Immediate past President, Carolan Mahr
(left) on behalf of their daughter, Jennifer Parrish.
Farm Credit of Central Florida
August 2011 | 25
Industry News
Government and Agriculture:
Partners in Progress
By Matt Lenhardt, UF/IFAS Citrus County Horticulture Extension Agent
A
griculture is a 14 million dollar
industry and an important component of the cultural and economic environment in Citrus County.
While the overall economy has taken a
downturn, agriculture continues to be a
viable industry, and its continued vitality
is beneficial for all residents. Local agriculture generates a positive impact on the
economy by supporting related businesses
such as banking, real estate, legal services,
transportation, packaging, equipment,
seed, agricultural suppliers, services, and
marketing firms.
Realizing the importance of a thriving agricultural industry, UF/IFAS Citrus
County Extension offered to assist in the
development of an “alliance” of agricultural
commodity groups in Citrus County. The
Agricultural Alliance of Citrus County
was formulated in 2009 to serve as a voice
for agriculture and to build relationships
through community education on the
environmental and economic benefits of
sustainable agriculture.
The success and strength of the
Agricultural Alliance has been the group’s
ability to gain support from stakeholders,
governmental agencies, and elected officials in the community. Chairman Dale
McClellan of M&B Dairy, and Co-Chairman
and past president of the Florida Cattlemen’s
Association Larry Rooks bring a wealth of
knowledge, charisma, and steadfast leadership to each meeting.
The Agricultural Alliance of Citrus
County is committed to achieving its
goals of sustainable agriculture through
education, marketing and promotion, and
involvement in local governmental affairs.
To accomplish their goals, a variety of
methods have been implemented. Some
of these methods include participating in
a local farmers market, participating in the
AGRItunity Conference and Trade Show,
allowing the University of Florida to showcase many of their agricultural operations
in an educational farms tour, serving in the
County’s Stakeholders Advisory Group,
and bringing awareness of agriculture to
youth in an “Awesome Ag Day.”
The Agricultural Alliance is a unique
and eclectic group, with each individual
sharing their own set of experiences and
expertise with others. Participants from
the agricultural industry include blueberry,
citrus and strawberry growers, dairy and
juice producers, nursery and green industry professionals, vegetable growers, and
cattlemen. Participants also include government officials such as Citrus County
Commissioners Wynn Webb, Rebecca
Bays, and Joe Meek; State of Florida
Representative Jimmie T. Smith; and
representation from Congressman Rich
Nugent’s office. The Agricultural Alliance
is also supported by the Citrus County
Chamber of Commerce, the Citrus County
Economic Development Council, and the
Citrus County Cattlemen’s Association.
The group also has benefitted from the
support of such businesses as Florida Farm
Bureau and Farm Credit of Central Florida.
Representation from governmental
agencies as well as county and state elected
officials is invaluable, providing a forum
to address the needs of the agricultural
community and create an awareness of
the value of agriculture in Citrus County.
UF/IFAS Citrus County Extension Agents
provide updates from the University of
Florida, offer professional applicator training reviews and licensing opportunities,
and help organize group activities and educational programming. The Citrus County
Chamber of Commerce and Citrus County
Visitor and Convention Bureau also lend
their expertise in promoting agri-business
and agri-tourism in the county.
This unique approach of involving
community stakeholders, governmental
agencies, and agricultural commodity
groups has already been called a model
for creating true partnerships for the
advancement of agriculture. Other county
Extension agencies have begun to use the
example of Agricultural Alliance of Citrus
County to start similar organizations. The
Agricultural Alliance of Citrus County
looks forward to building on its successes
and continuing its mission of increasing
awareness of the importance of the agricultural industry for this and the next generation to come. ■
All programs and related activities sponsored for, or assisted by, the Institute of
Food and Agricultural Sciences are open
to all persons with non-discrimination with
respect to race, creed, color, religion, age,
disability, sex, sexual orientation, marital
status, national origin, political opinions,
or affiliations.
The success and strength of the Agricultural Alliance
has been the group’s ability to gain support from
stakeholders, governmental agencies, and elected
officials in the community.
26 | August 2011
Farm Credit of Central Florida
Farm Credit of Central Florida
August 2011 | 27
Florida Cattlemen’s Convention • June 20–24 • Marco Island, FL
Polk County Cattlemen’s Association Ranch Rodeo • February 12 • Bartow, FL
Industry News
28 | August 2011
Farm Credit of Central Florida
Member News
Birds of a Feather Hunt Together
I
t has been said, if you find a job doing
what you enjoy, you will never work a
day in your life. In addition to working on their family’s 8,000-acre ranch near
Dade City, Florida, Ben and Chris Barthle,
two young entrepreneurs, are launching
a business called Central Florida Game
Birds, selling guided quail hunts in the fall.
The brothers have shared the benefit
of growing up on the family ranch, enjoying and respecting the outdoors. “I credit
my upbringing for teaching me loyalty
and honesty, not only to others, but being
honest with myself,” Ben said.
Chris and Ben’s, parents, Larry, 1999
Florida Cattlemen’s Association President,
and mother, Lynn, obviously taught their
children well. Both are graduates of Pasco
High School in Dade City, as well as the
University of Florida. Ben earned his
degree in Food and Resource Economics
from the University of Florida in 2007 and
Chris graduated from UF with a degree in
Agricultural Operations Management in
2008. Both were active members of their
high school’s FFA chapter; each serving as
Chapter President.
Dad is a principle in the ranching operation and Mom operates Critter Creations,
specializing in custom embroidery.
Both brothers are mar r ied, Ben
to Cameron, a first-grade teacher, and
Chris to Sara, who is due to deliver their
first child, a son, in November. Ben and
Cameron welcomed their first child, daughter, Chloe, into the world 15 months ago.
Ben has been a Farm Credit of Central
Florida Member for over a year. “I learned
about Farm Credit from Mom and Dad.
They star ted out working with Far m
Credit,” Ben said. Chris is also investigating how Farm Credit can benefit him.
“We plan to sell about 60 guided hunts
this season and have already sold half just
by word of mouth. A guided hunt for two
people will be $600.00 and for three it is
$850.00,” Ben said. For a two-person hunt
they guarantee 30 birds and for a three
person hunt 45 birds. ■
To book a hunt, contact Ben Barthle by
phone (352) 279-6511 or by e-mail at
[email protected].
Chris and Ben Barthle put one of their hunting
dogs through his paces in preparation for
hunting season.
(From the left) Chris Barthle and Farm Credit of Central Florida Member, Ben Barthle
Enter for a chance to Win a Two-person Bird Hunt
guided by Ben and Chris Barthle
Name _________________________________________________
Submit entry form by mail or e-mail
before August 31, 2011 to:
Ron O’Connor
Farm Credit of Central Florida
P.O. Box 8009
Lakeland, FL 33802-8009
[email protected]
Address _______________________________________________
______________________________________________________
Phone _________________________________________________
Email _________________________________________________
Financial News
Tax Notes
IRS Notices
If you receive a notice from the IRS, don’t
panic, the Service sends out millions to taxpayers every year. Most of these letters and
notices can be dealt with easily. Notices are
sent out for a number of reasons including
requests for payment of taxes, to notify you
of changes to your account, request additional information or correct errors noted
by the IRS. Usually, the notices are very
specific and a correct response will usually
handle the issue.
The notice will contain specif ic
instructions as to what the IRS is requesting, and a response should only address
what is requested. If you receive a correction notice, compare it with your return and
review all correspondence from the IRS
with your tax return preparer. If you and
your tax return preparer agree with the correction notice, a payment may be required.
If you don’t agree with the correction,
it is important that a response be made in a
timely and proper manner explaining why
you disagree including any supporting
documents that the Service should consider.
Most correspondence with the IRS can be
handled by mail.
It is important that you respond.
Whatever the issue is, ignoring the notice
will not make it go away. Be sure to keep
copies of all notices to and from the IRS.
Amended Form 1040X
Individual Returns
Amended returns allow taxpayers to file
again to correct income, add missed deductions or credits, to correct your filing status,
and correct any errors discovered after you
file your original return. Generally, you do
not file an amended return to correct math
errors as the IRS will make the correction
and notify you, see above IRS Notices.
Also, you don’t file an amended return if
you forgot to attach a form such as a W-2
or certain Form 1099s, the IRS will notify
you. A Form 1040X is used to amend Forms
1040, 1040A or 1040EZ. Time limits are
also involved when filing amended returns.
Filing an amended return does not increase
your chances of being audited.
A separate amended return is required
for each tax year that you are amending and
certain procedures are to be followed when
filing amended returns. If the amended
return involves an additional schedule
or form, these should be attached to the
amended return.
If you are filing for an additional
refund, wait until your original refund has
been deposited directly into your bank
account or you have received a paper check.
The paper check may be cashed while waiting for your additional refund.
Any tax due as a result of filing an
amended return should be paid as quickly
as possible to reduce interest and penalty
charges. The 1040X Form has been recently
redesigned for ease in filing. ■
For more information or questions
on IRS notices or Form 1040X amended
returns, please contact me at (863)6402008 or [email protected].
Beasley, Bryant & Company, CPA’s,
P.A. will be conducting a seminar on
the use, application and advantages of
QuickBooks for the Farm Credit of Central
Florida customers and other interested
parties on August 23 and September 22.
Mr. Ryan Beasley will be conducting the
seminars. Additional information will be
forthcoming regarding the seminars.
For information on other relevant
tax and business topics visit our website
at www.beasleybryantcpa.com . We at
Beasley, Bryant & Company, CPA’s, P.A.
are experienced in agricultural business
problems, tax issues and other business
concerns you may have and are here to
help you.
Thomas J. Bryant, CPA is Tax Partner,
Beasley, Bryant & Company, CPA’s, P. A.,
Lakeland, Florida (863)646-1373.
Central Florida Nurseries Recognized by
Greenhouse Grower Magazine
Greenhouse Grower Magazine annually recognizes its top 100
nursery growers in the industry. Among those receiving the honor
this year are:
#18 - Hermann Engelmann Greenhouses, Inc.
#43 - Plant Marketing, LLC
#67 - Riverview Flower Farm, Inc.
#79 - Dewar Nurseries, Inc.
#99 - Knox Nursery, Inc.
Congratulations to these great producers for achieving this
coveted honor! ■
30 | August 2011
Farm Credit of Central Florida
Farm Credit
to Offer
QuickBooks
Seminar
F
arm Credit of Central Florida plans
to offer a QuickBooks seminar for
Members to hone their accounting
skills and provide accurate, instant reporting on their agri-businesses. The course
will be a one-day class conducted by
QuickBooks-Certified Pro Advisors who
specialize in servicing agricultural clients
and will be held in Lakeland.
Class size will be limited to about 15
people, so if you are interested in being
invited, please contact Ron O’Connor via
e-mail at [email protected]
or call (863) 682-4117 ext. 403. ■
Spring Fever
in the Garden
I
n November 2000, a group of committed volunteers got together to “brain
storm” ideas for a fund raising event.
One of those volunteers was Fran Stanford,
wife of Far m Credit of Central Vice
Chairman of the Board, David Stanford.
A lady named Helen Kennedy proposed the idea for a garden festival and
on March 31, 2001 the Bloom ‘n Grow
Garden Society presented its idea for the
first ‘Spring Fever in the Garden.” The
event takes place every spring on the historic streets of Winter Garden, Florida and
draws 40–50,000 visitors to buy plants,
arts, crafts, and culinary treats ranging
from homemade ice cream to scrumptious
BBQ. In 2012, the event will celebrate its
12th anniversary April 14 & 15. ■
Industry News
Farm Credit Of Central Florida, ACA
Farm Credit Of Central Florida, ACA
(dollars in thousands)
Consolidated Balance
Consolidated
BalanceSheets
Sheets
Consolidated Balance Sheets
June 30,
2011
June 30,
(unaudited)
2011
(dollars in thousands)
Assets
Cash
Assets
Investment
securities:
Cash
Held to maturity (fair value of $48,522
Investment
securities:
and $45,946
respectively)
Held to maturity (fair value of $48,522
Loans
and $45,946 respectively)
Less: allowance for loan losses
Loans
Net loans
Less:
allowance for loan losses
$
$
Accrued
interest receivable
Net loans
Investments in other Farm Credit institutions
Accrued
receivable
Premisesinterest
and equipment,
net
Investments
in other
Other
property
ownedFarm Credit institutions
Premises
and
equipment,
net Bank
Due from AgFirst Farm Credit
Other
property owned
Other assets
Due from AgFirst Farm Credit Bank
Total assets
Other assets
235
$
235
$
(audited)
13
13
47,985
45,476
339,923
47,985
7,549
339,923
332,374
7,549
376,001
45,476
4,426
376,001
371,575
4,426
1,717
332,374
12,561
1,717
815
12,561
6,465
815
2,269
6,465
3,994
2,269
408,415
3,994
$
1,735
371,575
13,348
1,735
870
13,348
6,806
870
6,980
6,806
4,890
6,980
451,693
4,890
$
408,415
$
451,693
$
327,271
617
327,271
26
617
4,307
26
332,221
4,307
$
369,260
724
369,260
29
724
4,196
29
374,209
4,196
$
Total assets
Liabilities
Notes payable to AgFirst Farm Credit Bank
Liabilities
Accrued
interest payable
Notes payable
to AgFirst
Patronage
refund
payableFarm Credit Bank
Accrued
interest payable
Other liabilities
Patronage refund payable
Total liabilities
Other liabilities
(unaudited)
December 31,
2010
December
(audited) 31,
2010
$
Commitments
and contingencies
Total liabilities
Members' Equity
Commitments
and contingencies
Protected borrower equity
Members'
Equity
Capital
stock
and participation certificates
Protected
borrower equity
Retained earnings
Capital
stock and participation certificates
Allocated
Retained
earnings
Unallocated
Allocated other comprehensive income (loss)
Accumulated
Unallocated
Total members'
equity
Accumulated
other comprehensive
income (loss)
$
332,221
374,209
6
1,054
6
1,054
33,183
19
1,110
19
1,110
33,183
41,936
33,183
15
41,936
76,194
15
43,153
33,183
19
43,153
77,484
19
Total members'
liabilities and
members' equity
Total
equity
$
408,415
76,194
$
451,693
77,484
Total liabilities and members' equity
$
408,415
$
451,693
Consolidated Statements
Statements ofofOperations
Consolidated
Operations
(unaudited)
Consolidated Statements
of
Operations
(unaudited)
(unaudited)
For
the three months
ended June 30,
For
the three months
2011
2010
ended June 30,
2011
2010
(dollars in thousands)
(dollars
in Income
thousands)
Interest
Investment securities
Interest
Income
Loans
Investment securities
Loans Total interest income
$
$
Interest
Expense
Total
interest income
Notes payable to AgFirst Farm Credit Bank
Interest Expense
Net
interest
income
Notes
payable
to AgFirst Farm Credit Bank
Provision for (reversal of allowance for) loan losses
Net interest income
Net
interest
after
provision for
Provision
forincome
(reversal
of allowance
for) loan losses
(reversal of allowance for) loan losses
Net interest income after provision for
Noninterest
Income for) loan losses
(reversal of allowance
Loan fees
Noninterest
Income
Fees for financially
related services
Loan
Equityfees
in earnings of other Farm Credit institutions
Fees
for
financially
related
services
Gains (losses) on other
property
owned, net
Equity (losses)
in earnings
other
Creditloans
institutions
Gains
fromofsale
of Farm
rural home
Gains (losses)
other property owned, net
Insurance
Fundonrefunds
Gains noninterest
(losses) fromincome
sale of rural home loans
Other
Insurance Fund refunds
Other noninterest
income
Total noninterest
income
Noninterest
Expense income
Total noninterest
Salaries and employee benefits
Noninterest
Expense
Occupancy and
equipment
Salaries
and
employee
benefits
Insurance
Fund
premium
Occupancy
and equipment
Other operating
expenses
Insurance Fund premium
Other operating
expenses
Total noninterest
expense
230
4,169
230
4,399
4,169
$
$
219
4,117
219
4,336
4,117
For the six months
ended June 30,
For the six months
2011
2010
ended June 30,
2011
2010
$
$
451
8,429
451
8,880
8,429
$
$
453
8,376
453
8,829
8,376
4,399
1,920
4,336
2,210
8,880
3,959
8,829
4,466
2,479
1,920
1,143
2,479
1,143
1,336
2,126
2,210
1,470
2,126
1,470
656
4,921
3,959
4,281
4,921
4,281
640
4,363
4,466
3,625
4,363
3,625
738
1,336
189
57
189
861
57
(246)
861
12
(246)
—
12
33
—
33
906
656
135
145
135
2,077
145
(78)
2,077
41
(78)
—
41
24
—
24
2,344
640
210
90
210
2,551
90
(729)
2,551
31
(729)
—
31
44
—
44
2,197
738
284
170
284
3,824
170
(223)
3,824
80
(223)
428
80
83
428
83
4,646
906
1,324
169
1,324
50
169
406
50
406
1,949
2,344
1,273
170
1,2738
170
330
8
330
1,781
2,197
2,749
346
2,749
102
346
857
102
857
4,054
4,646
2,569
342
2,569
91
342
716
91
716
3,718
Net income
Total noninterest expense
$
293
1,949
$
1,219
1,781
$
(1,217)
4,054
$
1,666
3,718
Net income
$
293
$
1,219
$
(1,217)
$
1,666
The shareholders’ investment in the association is materially affected by the financial condition and results
of operations of AgFirst Farm Credit Bank. Copies of AgFirst’s quarterly and annual financial reports to
shareholders are available free of charge at www.agfirst.com, or by writing to AgFirst Farm Credit Bank,
Financial Reporting Department, P.O. Box 1499, Columbia, SC 29202-1499.
Farm Credit of Central Florida
August 2011 | 31
Farm Credit of Central Florida
P.O. Box 8009
Lakeland, FL 33802-8009
PRSRT STD
U.S. POSTAGE
PAID
COLUMBIA SC
PERMIT 1160
Can you put
a price on
your peace
of mind?
Planting crops is a risky proposition. You invest in
seed, fertilizer and crop protectants. You work long
hours planting … and then just hope for the best.
Unfortunately, no one can predict the weather.
Now is the time to talk to your crop insurance
specialist at Farm Credit. It can mean the
difference between financial success and disaster.
Supplying crop insurance for:
• Citrus Trees & Fruit
• Nurseries
• Fresh Vegetables
• Peanuts
• Blueberries
Farm Credit
Crop Insurance
866-245-3637
FarmCreditCFL.com
Farm Credit is an equal opportunity provider and employer.