Vermont Bankers Meeting

Ken Buzzell, Senior Vice President from the Newport office, attended the Orleans/Essex Vermont Bankers/Legislators meeting in Derby, Vermont on December 10th. Chris D'Elia President of the Vermont Bankers Association discussed the credit crisis and its effect on banking and consumers in Vermont. Legislators gave input and asked questions regarding the impact on Vermont Banks.

Happy Holidays

On behalf of the entire Yankee staff, Happy Holidays and best wishes for a successful 2009.

Interest Rate Changes 1/1/09

On December 16, 2008 the prime interest rate changed from 4.00% to 3.25% in response to actions taken by the Federal Reserve that day.

All Yankee Farm Credit variable interest rates will be decreased by 0.75% effective January 1, 2009.

Grafton Conference

Last week I attended a second meeting of the 33rd Grafton Conference, on the Vermont dairy industry. The first meeting was in March (see this post). The Windham Foundation will now publish a report from the conference. I will post a link here when it is available.

Much has happened since the March meeting. The Vermont Milk Commission has been active (more info here). Commodity prices peaked at the end of June and have since fallen dramatically. Milk prices are much lower than was expected last spring. The Chinese milk scandal (milk tainted with melamine) broke in July, significantly reducing demand for milk products in China. The Saputo cheese plant in Hinesburg was damaged by fire in September, and the company announced in October that it was closing the plant.

Outside of agriculture, the subprime financial crisis worsened significantly in September, prompting major government interventions in the financial markets. Earlier this month it was announced that we have been in a recession for a year. And the Obama administration and a new Congress take office next month, which will affect public policy of all kinds.

All of these topics were discussed. I was asked to speak on two topics:

The financial stress we are seeing on farms: We are hearing from farmers that there is considerable stress. It has not yet shown up in our statistics, but they always lag stress on the farm.

The effects of the financial crisis on the availability of credit for agriculture: As discussed in other posts on this blog, the Farm Credit System is still able to obtain funds, but at increased cost. Yankee's variable interest rates to members are presently 0.75% higher relative to prime than last summer.

UPDATE 1/23/09: The financial stress on farms has increased in the weeks since the Grafton Conference, as milk prices continue to decline and the general economy contracts. And while Yankee's variable interest rates to members are still 0.75% higher relative to prime than last summer, they are now the lowest in Yankee's history. Both topics are discussed in this post.

UPDATE 7/20/09: Click here for the conference report (1 MB PDF file).

My Favorite Entrepreneur

At Yankee this past year we have been talking about four values: integrity, relationships, competence and entrepreneurship. One of my heroes who exemplifies these values is Benjamin Franklin.

Integrity: Franklin developed a list of 13 virtues to live by, several of which are related to integrity.

Relationships: Several of the 13 virtues speak to the art of good relationships. Franklin was a master diplomat, securing the assistance of France in the American Revolution.

Competence: Benjamin Franklin was accomplished in many fields. From Wikipedia: "Franklin was a leading author and printer, satirist, political theorist, politician, scientist, inventor, civic activist, statesman, and diplomat."

Many of the Founding Fathers were exemplars of these three values. George Washington and Thomas Jefferson, in particular, come to mind. But perhaps alone among the Founding Fathers, Benjamin Franklin was also a successful entrepreneur. He was innovative—inventing the lightning rod, bifocals and the Franklin stove. He was a successful author, printer and merchant. It is ironic that Poor Richard's Almanack helped make him wealthy. He founded a mutual insurance company which is still in existence today.

I hope that Benjamin Franklin's portrait on the $100 bill reminds you of these qualities about him, and especially his entrepreneurship!

Agri-Mark Meeting

Ken Buzzell, Vice President from the Newport office, attended the district 12 Agri-Mark Regional Meeting in Morristown Vermont on December 1st. Elections for Director and other offices were held. Paul Johnson CEO of Agri-Mark spoke of the financial results of Agri-Mark and the challenges facing farmers in 2009.

Morgan Greenwood Rilling, Loan Officer from the White River office, represented Yankee at the Agri-Mark regional meeting held in West Lebanon, NH on December 4th. The major topic of the meeting was projections for next year.

UNH Cooperative Extension Course

Mike Moloney, Senior Records and Tax Specialist, and Jean Conklin, Loan Officer and Tax Specialist, both from the White River Junction office, were presenters at a "Keeping and Using Financial Records to Improve the Profitability of Your Farm" course on December 4, 2008.

Mike conducted a session about "Income Tax Planning in both High and Low Profit Years." Jean's presentation was "What a Lender Looks For" and discussed other various Farm Credit Programs.

The program was sponsored by UNH Cooperative Extension and held at the Student Conservation Association complex in Charlestown, NH.