Wednesday, March 31, 2010
Working Together To Ensure Our Future
Ken Buzzell, Senior Vice President of the Newport office, participated as a speaker at the “Working Together To Ensure Our Future” Conference held in Burlington, Vermont on March 30, 2010. He participated as a panelist during a break-out session “Finding, Structuring and Securing the Necessary Capital”. Other panelists were Charlie Keeler from VACC and Bob Paquin from FSA. Each lender talked about what loans they offered – terms, interest rates and conditions. Also what lenders expected from their borrowers – good records, accurate financial statements, communication/no surprise lending, working capital adequacy, profit and strong balance sheets. A question and answer period followed the presentations.
Tuesday, March 23, 2010
2010 Director Nominees
The Nominating Committee has nominated the following individuals for director:
Region 1:
Alan J. Bourbeau, Sheldon, VT
Clark W. Hinsdale, III, Charlotte, VT
Glenn A. McNall, Fairfax, VT
Region 2:
Louise H. Calderwood, Craftsbury, VT
Bryan E. Davis, Derby Line, VT
Region 3:
Leon R. Clark, Jr., Pawlet, VT
Paul F. Saenger, Shoreham, VT
One director from each region will be elected at Annual Meetings which will be held April 5-15, 2010. There are 1,105 members eligible to vote at Annual Meeting this year.
Region 1:
Alan J. Bourbeau, Sheldon, VT
Clark W. Hinsdale, III, Charlotte, VT
Glenn A. McNall, Fairfax, VT
Region 2:
Louise H. Calderwood, Craftsbury, VT
Bryan E. Davis, Derby Line, VT
Region 3:
Leon R. Clark, Jr., Pawlet, VT
Paul F. Saenger, Shoreham, VT
One director from each region will be elected at Annual Meetings which will be held April 5-15, 2010. There are 1,105 members eligible to vote at Annual Meeting this year.
2009 Annual Report
The 2009 annual report is now available on our web site: click here. Net income was $5.1 million and the patronage refund will be $2,573,000 as discussed in this letter to members. Patronage refunds will be paid later this week.
We are pleased to feature the Rooney and James families of Monument Farms on the cover of our annual report. The photographs from the 1940s, 1970s and today illustrate the tag line on our new web site: Building Relationships That Last Generations.
We are pleased to feature the Rooney and James families of Monument Farms on the cover of our annual report. The photographs from the 1940s, 1970s and today illustrate the tag line on our new web site: Building Relationships That Last Generations.
Sunday, March 21, 2010
CoBank/NECC Meeting
CoBank and the Northeast Cooperative Council (NECC) held a joint meeting in Syracuse, NY on March 18-19. CoBank held its Northeast Customer Meeting. The NECC held its annual Cooperative Leaders Forum. The theme for this year's forum was Contemporary Cooperative Issues. Director Paul Saenger represents Yankee on the NECC.
Dan Kelley, the First Vice Chairman of CoBank's board of directors, and Bob Engel, CoBank's President and CEO, discussed CoBank's financial results for 2009. Net income was a record $565 million. The patronage distribution was $269 million, or 48% of net income. CoBank ended the year with $58 billion in assets and excellent credit quality, with 97.8% of loans in the top two categories for credit quality.
A number of interesting speakers addressed the attendees. Click here for the conference agenda; click here for speaker bios. The evening speaker was Doug Flutie, who spoke about both football and his Foundation for Autism. Over 160 northeast cooperative leaders attended the meeting, including nine directors and managers from Yankee.
UPDATE 3/26/10: Speaker presentations from the NECC meeting are posted here.
Dan Kelley, the First Vice Chairman of CoBank's board of directors, and Bob Engel, CoBank's President and CEO, discussed CoBank's financial results for 2009. Net income was a record $565 million. The patronage distribution was $269 million, or 48% of net income. CoBank ended the year with $58 billion in assets and excellent credit quality, with 97.8% of loans in the top two categories for credit quality.
A number of interesting speakers addressed the attendees. Click here for the conference agenda; click here for speaker bios. The evening speaker was Doug Flutie, who spoke about both football and his Foundation for Autism. Over 160 northeast cooperative leaders attended the meeting, including nine directors and managers from Yankee.
UPDATE 3/26/10: Speaker presentations from the NECC meeting are posted here.
Keynes vs. Hayek - The Rap Version
CoBank's latest Outlook newsletter features an interview with George Melloan who says: "I’ve never had any confidence in Keynesian-type stimulus." That is a reference to the famous British economist John Maynard Keynes. Keynes wrote an influential book titled The General Theory of Employment, Interest and Money (1936) in which he advocated increased government spending (stimulus) as a way out of recessions and depressions.
One of Keynes' contemporaries who argued the opposite position was the Austrian economist Friedrich A. Hayek.
A recent video on YouTube features two actors playing the roles of Keynes and Hayek in a debate. It is an engaging rap video: "Fear the Boom and Bust." (Employees on the FPI network will have to watch this video at home because video streaming is blocked at work.)
The video was created by producer John Papola and economist Russell Roberts, a professor at George Mason University. One amusing scene shows The General Theory of Employment, Interest and Money in the drawer of the hotel bedside stand where one usually finds a Gideon Bible. Later the video mentions The Fatal Conceit by Hayek, which gives a different view of economics and political philosophy.
Interestingly, Keynes never won the Nobel prize for economics. Hayek won it in 1974.
Click here for more info about the video—including the song lyrics (alas, link blocked by FPI).
A quote from The General Theory of Employment, Interest and Money: "The ideas of economists and political philosophers, both when they are right and when they are wrong, are more powerful than is commonly understood. Indeed the world is ruled by little else. Practical men, who believe themselves to be quite exempt from any intellectual influence, are usually the slaves of some defunct economist." Surely that last phrase is a reference to The Road to Serfdom?? Sorry, couldn't resist!
UPDATE 3/26/10: Did you notice the names of the bartenders? I missed that the first time through. There is plenty of symbolism in Ben (Bernanke) and Tim (Geithner) serving alcohol to an inebriated Keynes!
One of Keynes' contemporaries who argued the opposite position was the Austrian economist Friedrich A. Hayek.
A recent video on YouTube features two actors playing the roles of Keynes and Hayek in a debate. It is an engaging rap video: "Fear the Boom and Bust." (Employees on the FPI network will have to watch this video at home because video streaming is blocked at work.)
The video was created by producer John Papola and economist Russell Roberts, a professor at George Mason University. One amusing scene shows The General Theory of Employment, Interest and Money in the drawer of the hotel bedside stand where one usually finds a Gideon Bible. Later the video mentions The Fatal Conceit by Hayek, which gives a different view of economics and political philosophy.
Interestingly, Keynes never won the Nobel prize for economics. Hayek won it in 1974.
Click here for more info about the video—including the song lyrics (alas, link blocked by FPI).
A quote from The General Theory of Employment, Interest and Money: "The ideas of economists and political philosophers, both when they are right and when they are wrong, are more powerful than is commonly understood. Indeed the world is ruled by little else. Practical men, who believe themselves to be quite exempt from any intellectual influence, are usually the slaves of some defunct economist." Surely that last phrase is a reference to The Road to Serfdom?? Sorry, couldn't resist!
UPDATE 3/26/10: Did you notice the names of the bartenders? I missed that the first time through. There is plenty of symbolism in Ben (Bernanke) and Tim (Geithner) serving alcohol to an inebriated Keynes!
Monday, March 15, 2010
Small Farm Survey
The USDA's Economic Research Service recently published the results of a survey of small farms (gross income of less than $250,000). Small farms account for 91% of all farms, and 23% of agricultural production. Click here for more information.
Friday, March 12, 2010
Grants for Farm Business Transfer Planning
The Vermont Agency of Agriculture has grant money to help farmers pay for farm business transfer planning. Examples including paying for an attorney, accountant or financial advisor. Click here for details and an application.
Monday, March 8, 2010
Can SLO agriculture feed the world?
Farmers feed the world. Can SLO agriculture feed the world? Proponents of SLO agriculture fervently believe the answer is yes. "Fervently" as in not only can SLO agriculture feed the world, but SLO agriculture must feed the world; it's the only way. Others are skeptical.
Dan Barber is a world-famous chef at Blue Hill at Stone Barns north of New York City. Mr. Barber gave an interesting TED talk about SLO agriculture: Dan Barber's foie gras parable. He does not use the terminology "SLO agriculture;" that's my terminology. But that is what the talk is about. Now what can SLO agriculture possibly have in common with foie gras? You'll have to watch the video to find out. In 20 minutes, and especially in the final three minutes, you will gain a better understanding of the philosophy of SLO agriculture.
Among the skeptics I'm pretty sure we would find Dr. Norman Borlaug, father of the Green Revolution. I think it is fair to say that another skeptic is Bill Gates. Last fall Bill Gates gave his first major speech on agriculture—in which he praised the legacy of Dr. Borlaug, who had died the preceding month at the age of 95. Bill Gates used the word "small" 21 times in his speech, and so in that regard he might be consistent with SLO agriculture. But both Bill Gates and Norman Borlaug favor the use of all available technology, including chemicals and genetic modification, and that is anathema to SLO agriculture. Links to earlier posts about these two men: Norman Borlaug, Bill Gates on Agriculture.
Each year at the World Economic Forum in Davos, Switzerland, some of the world's leaders gather to discuss current issues. At the 2010 event six weeks ago there was a panel discussion on Rethinking How to Feed the World. Bill Gates was on the panel. Dan Barber was in the audience. And Felix Salmon blogged about it: World hunger and the locavores.
(Close readers of this blog may recognize Felix Salmon. He wrote "Recipe for Disaster: The Formula That Killed Wall Street," which I mentioned in this earlier blog post.)
I do not know the answer to the question posed by the title of this post. I doubt anyone does. My purpose in this post is to provide links to interesting discussions about this question, so that you can think about the question yourself.
I'll close this post with a thought inspired by the NOFA-VT Winter Conference last month. Peter Forbes opened the conference. During his comments he played portions of a TED video by storyteller Chimamanda Adichie: The danger of a single story. Perhaps the question posed by the title of this post is an issue on which we should keep an open mind, and avoid the danger of a single story.
Related posts:
SLO Agriculture
SLO Agriculture and Relationships
Dan Barber is a world-famous chef at Blue Hill at Stone Barns north of New York City. Mr. Barber gave an interesting TED talk about SLO agriculture: Dan Barber's foie gras parable. He does not use the terminology "SLO agriculture;" that's my terminology. But that is what the talk is about. Now what can SLO agriculture possibly have in common with foie gras? You'll have to watch the video to find out. In 20 minutes, and especially in the final three minutes, you will gain a better understanding of the philosophy of SLO agriculture.
Among the skeptics I'm pretty sure we would find Dr. Norman Borlaug, father of the Green Revolution. I think it is fair to say that another skeptic is Bill Gates. Last fall Bill Gates gave his first major speech on agriculture—in which he praised the legacy of Dr. Borlaug, who had died the preceding month at the age of 95. Bill Gates used the word "small" 21 times in his speech, and so in that regard he might be consistent with SLO agriculture. But both Bill Gates and Norman Borlaug favor the use of all available technology, including chemicals and genetic modification, and that is anathema to SLO agriculture. Links to earlier posts about these two men: Norman Borlaug, Bill Gates on Agriculture.
Each year at the World Economic Forum in Davos, Switzerland, some of the world's leaders gather to discuss current issues. At the 2010 event six weeks ago there was a panel discussion on Rethinking How to Feed the World. Bill Gates was on the panel. Dan Barber was in the audience. And Felix Salmon blogged about it: World hunger and the locavores.
(Close readers of this blog may recognize Felix Salmon. He wrote "Recipe for Disaster: The Formula That Killed Wall Street," which I mentioned in this earlier blog post.)
I do not know the answer to the question posed by the title of this post. I doubt anyone does. My purpose in this post is to provide links to interesting discussions about this question, so that you can think about the question yourself.
I'll close this post with a thought inspired by the NOFA-VT Winter Conference last month. Peter Forbes opened the conference. During his comments he played portions of a TED video by storyteller Chimamanda Adichie: The danger of a single story. Perhaps the question posed by the title of this post is an issue on which we should keep an open mind, and avoid the danger of a single story.
Related posts:
SLO Agriculture
SLO Agriculture and Relationships
SLO Agriculture and Relationships
SLO agriculture has much in common with Yankee Farm Credit's values, especially relationships.
A common theme of Sustainable and Local and Organic is an increasing desire by consumers to be more "connected" to their food—all with a view toward enjoying their food more. Increasing numbers of people want to have a closer relationship with their food, and the people who grow and prepare their food. They want to know what's in their food, where it came from, and who was involved along the way.
This theme is what drives the locavore movement, including farmers markets and community supported agriculture (CSAs). This theme is why chefs are becoming celebrities. The major newspaper in Yankee's territory (The Burlington Free Press) recently created a special Friday section titled Savorvore which is all about helping people enjoy their food more.
The topic of SLO agriculture is not limited to the Savorvore section. Yesterday's Burlington Free Press featured a front page article by Candace Page about CSAs: Farms embrace a new way to sell a season's worth of food. The article closes with this quote by a CSA customer, speaking about a farm two miles from my home: "People today seem to want that direct attachment to a particular farm. They drive by the farm, and their kids all say, 'That's our farm!' You can't buy customer loyalty like that."
If you like to cook and you want a closer relationship with your food, I recommend Dishing Up Vermont, by Tracey Medeiros. Even if you don't like to cook, I recommend this cookbook for the great photos and stories about Vermont farms and restaurants, all related to the Vermont Fresh Network.
Related posts:
SLO Agriculture
Can SLO agriculture feed the world?
UPDATE 3/09/10: Today's Burlington Free Press features another front page article about SLO agriculture (emphasis on the "local" part): Conditions get Vermont's maple syrup producers off to a sweet start by Dan McLean. The farmer featured in the article is my brother, Bill Putnam.
A common theme of Sustainable and Local and Organic is an increasing desire by consumers to be more "connected" to their food—all with a view toward enjoying their food more. Increasing numbers of people want to have a closer relationship with their food, and the people who grow and prepare their food. They want to know what's in their food, where it came from, and who was involved along the way.
This theme is what drives the locavore movement, including farmers markets and community supported agriculture (CSAs). This theme is why chefs are becoming celebrities. The major newspaper in Yankee's territory (The Burlington Free Press) recently created a special Friday section titled Savorvore which is all about helping people enjoy their food more.
The topic of SLO agriculture is not limited to the Savorvore section. Yesterday's Burlington Free Press featured a front page article by Candace Page about CSAs: Farms embrace a new way to sell a season's worth of food. The article closes with this quote by a CSA customer, speaking about a farm two miles from my home: "People today seem to want that direct attachment to a particular farm. They drive by the farm, and their kids all say, 'That's our farm!' You can't buy customer loyalty like that."
If you like to cook and you want a closer relationship with your food, I recommend Dishing Up Vermont, by Tracey Medeiros. Even if you don't like to cook, I recommend this cookbook for the great photos and stories about Vermont farms and restaurants, all related to the Vermont Fresh Network.Related posts:
SLO Agriculture
Can SLO agriculture feed the world?
UPDATE 3/09/10: Today's Burlington Free Press features another front page article about SLO agriculture (emphasis on the "local" part): Conditions get Vermont's maple syrup producers off to a sweet start by Dan McLean. The farmer featured in the article is my brother, Bill Putnam.
SLO Agriculture
A small but growing sector of agriculture is what I call SLO agriculture: sustainable, local, and/or organic. My choice of acronym is a deliberate reference to slow food and slow money, two related concepts that are typically embraced by this community.
There is no accepted definition of sustainable or local, but thanks to Senator Patrick Leahy there is a useful definition of organic. Agriculture in the U.S. is organic if it complies with the National Organic Program (NOP) administered by the USDA.
Last month the USDA announced the results of its first ever Organic Production Survey (news release, full report). This was done as a followup to the 2007 Census of Agriculture. The U.S. has approximately 900 million acres of agricultural land, of which about 4 million acres are certified as organic. USDA Secretary Tom Vilsack mentioned these numbers, and the survey, in his comments at the NOFA-VT Winter Conference last month.
This is small, but not insignificant, and growing. The growth is happening particularly on the coasts. We are seeing this growth in Yankee's territory.
While "sustainable" is not as well defined as "organic," the USDA has long been involved in sustainable agriculture through its support of SARE (Sustainable Agriculture Research and Education). With regard to "local," the USDA recently rolled out its Know Your Farmer, Know Your Food initiative.
Not all of the leadership in SLO agriculture is coming from the USDA. Within Yankee's territory, major dairy farmer organizations and the Vermont Agency of Agriculture have recently been promoting local agriculture through the Keep Local Farms initiative. NOFA-VT has long been a leader in organic agriculture. Many farmers in and around Hardwick, VT have been leaders in SLO agriculture, resulting in the Hardwick Agricultural Revolution. Agri-Mark and Cabot have been involved in sustainability issues for some time. Ben & Jerry's, St. Albans Cooperative Creamery, UVM's Center for Sustainable Agriculture and the Vermont Agency of Agriculture have created the Dairy Stewardship Alliance. And major buyers of food, such as Walmart, are now asking for food produced by this type of agriculture.
Over 99% of the agricultural land in the U.S. is not organic, as noted above. Not everyone is convinced that SLO agriculture will be significant. Here's an alternative viewpoint: "Know Your Farmer, Know Your Food" is a joke. If SLO agriculture does become significant, it will likely do so on the coasts before the midwest.
In the Summer 2007 issue of Financial Partner magazine (5MB PDF file), I wrote about historical changes in agriculture in Yankee's territory. See my column on page 2: "Ceres watches over an ever-changing landscape." See also The Forgotten Potash Economy. Will SLO agriculture be a significant part of agriculture in Yankee's territory in the future? Stay tuned.
Related posts:
SLO Agriculture and Relationships
Can SLO agriculture feed the world?
There is no accepted definition of sustainable or local, but thanks to Senator Patrick Leahy there is a useful definition of organic. Agriculture in the U.S. is organic if it complies with the National Organic Program (NOP) administered by the USDA.
Last month the USDA announced the results of its first ever Organic Production Survey (news release, full report). This was done as a followup to the 2007 Census of Agriculture. The U.S. has approximately 900 million acres of agricultural land, of which about 4 million acres are certified as organic. USDA Secretary Tom Vilsack mentioned these numbers, and the survey, in his comments at the NOFA-VT Winter Conference last month.
This is small, but not insignificant, and growing. The growth is happening particularly on the coasts. We are seeing this growth in Yankee's territory.
While "sustainable" is not as well defined as "organic," the USDA has long been involved in sustainable agriculture through its support of SARE (Sustainable Agriculture Research and Education). With regard to "local," the USDA recently rolled out its Know Your Farmer, Know Your Food initiative.
Not all of the leadership in SLO agriculture is coming from the USDA. Within Yankee's territory, major dairy farmer organizations and the Vermont Agency of Agriculture have recently been promoting local agriculture through the Keep Local Farms initiative. NOFA-VT has long been a leader in organic agriculture. Many farmers in and around Hardwick, VT have been leaders in SLO agriculture, resulting in the Hardwick Agricultural Revolution. Agri-Mark and Cabot have been involved in sustainability issues for some time. Ben & Jerry's, St. Albans Cooperative Creamery, UVM's Center for Sustainable Agriculture and the Vermont Agency of Agriculture have created the Dairy Stewardship Alliance. And major buyers of food, such as Walmart, are now asking for food produced by this type of agriculture.
Over 99% of the agricultural land in the U.S. is not organic, as noted above. Not everyone is convinced that SLO agriculture will be significant. Here's an alternative viewpoint: "Know Your Farmer, Know Your Food" is a joke. If SLO agriculture does become significant, it will likely do so on the coasts before the midwest.
In the Summer 2007 issue of Financial Partner magazine (5MB PDF file), I wrote about historical changes in agriculture in Yankee's territory. See my column on page 2: "Ceres watches over an ever-changing landscape." See also The Forgotten Potash Economy. Will SLO agriculture be a significant part of agriculture in Yankee's territory in the future? Stay tuned.
Related posts:
SLO Agriculture and Relationships
Can SLO agriculture feed the world?
The Wonderful TED Web Site
If you have not already discovered the wonderful TED web site, I encourage you to check it out. It is one of the gems of the Internet. The tag line for the web site is:
"Ideas worth spreading. Riveting talks by remarkable people, free to the world."
For historical reasons, TED stands for technology, entertainment, design. The TED web site features recorded videos, typically 18-20 minutes long, of an amazing variety of interesting people giving talks before live audiences. There are currently over 500 talks available to watch, and more are being added each week. You are certain to find something that interests you.
I will occasionally refer to TED videos in subsequent posts.
If you are on the FPI network, you will need to watch TED videos at home because FPI has blocked all sites with streaming video such as YouTube and TED.
UPDATE 7/20/10: TED came to UVM yesterday. See TEDxUVM and the article in today's Burlington Free Press: TEDx spreads ideas at UVM.
UPDATE 8/13/10: Click here for the presentation by UVM professor and Yankee director Rocki-Lee DeWitt. The three companies that Dr. DeWitt talks about: GE, Coca-Cola, American States Water Company.
"Ideas worth spreading. Riveting talks by remarkable people, free to the world."
For historical reasons, TED stands for technology, entertainment, design. The TED web site features recorded videos, typically 18-20 minutes long, of an amazing variety of interesting people giving talks before live audiences. There are currently over 500 talks available to watch, and more are being added each week. You are certain to find something that interests you.
I will occasionally refer to TED videos in subsequent posts.
If you are on the FPI network, you will need to watch TED videos at home because FPI has blocked all sites with streaming video such as YouTube and TED.
UPDATE 7/20/10: TED came to UVM yesterday. See TEDxUVM and the article in today's Burlington Free Press: TEDx spreads ideas at UVM.
UPDATE 8/13/10: Click here for the presentation by UVM professor and Yankee director Rocki-Lee DeWitt. The three companies that Dr. DeWitt talks about: GE, Coca-Cola, American States Water Company.
Friday, March 5, 2010
Letter to Members
The following letter is being mailed to dairy farmer members today:
March 5, 2010
Dear Dairy Farmer Member,
In 2009 dairy farmers experienced their worst year since perhaps the Great Depression. While 2010 looks to be better, milk prices have not yet recovered to levels that are needed to make up for last year.
Yankee Farm Credit provided substantial financial assistance to dairy farmer customers last year, including both new funds and forbearance actions (e.g., interest-only payments). As we service loan requests this year, we will be mindful of borrowers’ financial condition. If you anticipate requesting credit, what can you do to improve the odds that we will say “yes” to your request? We provided guidance relative to that question in the Spring 2008 issue of Financial Partner magazine. That guidance is still valid, and that column is reprinted on the back of this letter. [Click here for the Spring 2008 issue of Financial Partner magazine (2 MB PDF file). See page 6.]
For borrowers who do not meet the balance sheet benchmarks in that column, our approach to credit requests this year may be more conservative than in the past. We may require additional collateral, co-signers or guarantors. We may require additional financial covenants or FSA guarantees. We may increase interest rates where risk has increased. Each situation is unique, and I encourage you to discuss your situation with your loan officer.
Our approach this year does not mean that we are questioning borrowers’ character or work ethic. It simply reflects changing business realities, in both the dairy and the lending industries. In your industry, there is a limit to the amount of operating losses that can be covered by additional borrowing. In our industry, the people who look over our shoulder expect us to limit the amount of risk in our loan portfolio. You should want us to limit risk, too, since you are an owner of the Association.
Yankee Farm Credit was here for the dairy industry in 2009. We intend to be here in the future. We want you to be here, too. We want you to succeed. As lenders, we know that debt can be a valuable tool for success. We also know that excessive debt can contribute to failure. Our goal is to work with you to determine the right amount of debt for you.
We wish you success in your operation. Please let us know how we can be of assistance.
Sincerely,
George S. Putnam
President and CEO
Balance sheet benchmarks in the above-mentioned column in the Spring 2008 issue of Financial Partner magazine:
· Net worth as a percent of total assets: 50 percent or more
· Debt per cow: $3,000 or less
· Current ratio (current assets divided by current liabilities): 1.5:1 or more
March 5, 2010
Dear Dairy Farmer Member,
In 2009 dairy farmers experienced their worst year since perhaps the Great Depression. While 2010 looks to be better, milk prices have not yet recovered to levels that are needed to make up for last year.
Yankee Farm Credit provided substantial financial assistance to dairy farmer customers last year, including both new funds and forbearance actions (e.g., interest-only payments). As we service loan requests this year, we will be mindful of borrowers’ financial condition. If you anticipate requesting credit, what can you do to improve the odds that we will say “yes” to your request? We provided guidance relative to that question in the Spring 2008 issue of Financial Partner magazine. That guidance is still valid, and that column is reprinted on the back of this letter. [Click here for the Spring 2008 issue of Financial Partner magazine (2 MB PDF file). See page 6.]
For borrowers who do not meet the balance sheet benchmarks in that column, our approach to credit requests this year may be more conservative than in the past. We may require additional collateral, co-signers or guarantors. We may require additional financial covenants or FSA guarantees. We may increase interest rates where risk has increased. Each situation is unique, and I encourage you to discuss your situation with your loan officer.
Our approach this year does not mean that we are questioning borrowers’ character or work ethic. It simply reflects changing business realities, in both the dairy and the lending industries. In your industry, there is a limit to the amount of operating losses that can be covered by additional borrowing. In our industry, the people who look over our shoulder expect us to limit the amount of risk in our loan portfolio. You should want us to limit risk, too, since you are an owner of the Association.
Yankee Farm Credit was here for the dairy industry in 2009. We intend to be here in the future. We want you to be here, too. We want you to succeed. As lenders, we know that debt can be a valuable tool for success. We also know that excessive debt can contribute to failure. Our goal is to work with you to determine the right amount of debt for you.
We wish you success in your operation. Please let us know how we can be of assistance.
Sincerely,
George S. Putnam
President and CEO
Balance sheet benchmarks in the above-mentioned column in the Spring 2008 issue of Financial Partner magazine:
· Net worth as a percent of total assets: 50 percent or more
· Debt per cow: $3,000 or less
· Current ratio (current assets divided by current liabilities): 1.5:1 or more
Vermont's Farm First Program
The Farm First Program is now available to Vermont dairy farmers and their family members. This program provides short-term counseling and resource/referral information for any concern. It is confidential and free. Click here for more information.
Many employers provide an "employee assistance program" (EAP) for their employees. The Farm First Program is an EAP for dairy farmers. The Vermont Agency of Agriculture, Food and Markets coordinated this new program and provided financial support. Yankee Farm Credit and other institutions serving dairy farmers provided additional financial support. The service is provided by INVEST EAP of Burlington, which also provides the EAP for Vermont state employees.
The Farm First Program may be used for any issue. Examples include: legal issues, stress, finances, relationships, medical issues, conflicts, elderly parents, anxiety, nutrition, depression, etc.
Vermont dairy farmers and their family members desiring assistance should call this toll-free number: 1-877-493-6216. Or log on to the INVEST EAP web site and use the password dairy.
Non-dairy farmers and Yankee customers living in New York and New Hampshire can find resources to call in this blog post: Need to talk to someone about financial stress?
UPDATE 5/12/10: The Vermont Agency of Agriculture has posted a news release about the Farm First Program: A New Ally for Dairy Farmers.
Many employers provide an "employee assistance program" (EAP) for their employees. The Farm First Program is an EAP for dairy farmers. The Vermont Agency of Agriculture, Food and Markets coordinated this new program and provided financial support. Yankee Farm Credit and other institutions serving dairy farmers provided additional financial support. The service is provided by INVEST EAP of Burlington, which also provides the EAP for Vermont state employees.
The Farm First Program may be used for any issue. Examples include: legal issues, stress, finances, relationships, medical issues, conflicts, elderly parents, anxiety, nutrition, depression, etc.
Vermont dairy farmers and their family members desiring assistance should call this toll-free number: 1-877-493-6216. Or log on to the INVEST EAP web site and use the password dairy.
Non-dairy farmers and Yankee customers living in New York and New Hampshire can find resources to call in this blog post: Need to talk to someone about financial stress?
UPDATE 5/12/10: The Vermont Agency of Agriculture has posted a news release about the Farm First Program: A New Ally for Dairy Farmers.
Stephen Taylor Awarded Pettee Medal
The recipient of the 2009 Charles Holmes Pettee Medal is Yankee director Steve Taylor. The Charles Holmes Pettee Medal is awarded annually by the University of New Hampshire Alumni Association to a resident or former resident of New Hampshire in recognition of outstanding accomplishment or distinguished service to the state, nation or world.
Steve is a farmer and newspaperman, but he is perhaps best known for his 25 years of service to the State of New Hampshire as its Commissioner of Agriculture, Markets and Food (1982-2007). Steve was elected to the Yankee board of directors in 2009.
Steve and his wife, Gretchen, live in Meriden Village section of Plainfield, NH. Steve is a 1962 graduate of the University of New Hampshire, and holds the record for longest tenure on its Board of Trustees.
There will be a ceremony and luncheon on Tuesday, April 6th at the UNH campus to honor Steve. It is open to the public, but reservations are required. More info here (scroll down). Click here to make reservations.
Congratulations, Steve!
Steve is a farmer and newspaperman, but he is perhaps best known for his 25 years of service to the State of New Hampshire as its Commissioner of Agriculture, Markets and Food (1982-2007). Steve was elected to the Yankee board of directors in 2009.
Steve and his wife, Gretchen, live in Meriden Village section of Plainfield, NH. Steve is a 1962 graduate of the University of New Hampshire, and holds the record for longest tenure on its Board of Trustees.
There will be a ceremony and luncheon on Tuesday, April 6th at the UNH campus to honor Steve. It is open to the public, but reservations are required. More info here (scroll down). Click here to make reservations.
Congratulations, Steve!
Northeast Dairy Challenge
Marie Guay, Senior Loan Officer from Chazy, and Mike Farmer, Vice President from St. Albans, worked with 8 UVM students who are spending a semester at Miner Institute including the 2+2 Dairy students to prepare them for the Northeast Dairy Challenge. Students included Michael Fitzgerald, Leanna Scholten, Claire Stanley, Henry Pearl, Virginia Purrier, Megan Foy, Brittany Sweeney and Spencer Bates. Marie and Mike met with them on February 16th and March 3rd.The students worked on a case study involving a dairy operation owned by two generations of a fictional family. Their assignment was to evaluate 3 years of balance sheet, profit & loss statement, and farm production data to give the family a better understanding of their own business. They presented a SWOT analysis pointing out the strengths, weakness, opportunities and threats to the family business, and a suggested course of action. The family has several issues that must be dealt with. The students worked in two teams and presented a PowerPoint summarizing the SWOT analysis and the goals.
The financial tools used required the students to convert a cash profit & loss statement to accrual, and to analyze the business using a gross and net margin concept where they split expenses into variable and fixed costs.
This is the fifth year that Mike and Marie have done this to teach students dairy farm management related to evaluating farm profitability and asset utilization. See this older post for last year's program.
Tuesday, March 2, 2010
Vermont Dairy Producers Conference
Loan officer Kelly Langmaid from our Newport office submitted this report from the recent Vermont Dairy Producers' Conference:
The Vermont Dairy Producers’ Conference was held on February 25, 2010 at the Sheraton Hotel & Conference Center in South Burlington. The opening remarks were made by VT US Senator Bernie Sanders and comedian Carl Hurley led the conference.
Dr. Bill Stone, a technical support and field research veterinarian with Diamond V Technologies followed the welcome with a discussion about limiting the amount of shrink in forages to reduce feed costs. He highlighted forage and silo managements practices, feeding management, and feed additives that can affect the level of shrink, in turn affecting the bottom line in feed costs.
Dr. Andrè Wright, Associate Professor, and the new Chair of the Department of Animal Science at UVM followed. His discussion focused on the research he has been conducting for the last 10 years in modifying dairy methane production.
The morning was wrapped up by Dr. Julie Smith, a UVM Extension Dairy Specialist. Dr. Smith talked about the importance of preparing for a Bio-Disaster. She used footage from the 2001 foot-and-mouth outbreak in the United Kingdom to show the tragedy that can occur.
Lunch was provided with VT Secretary of Agriculture Roger Allbee in attendance to speak to the group about the current dairy economy and events in the state, including the recent visit from US Secretary of Agriculture, Tom Vilsack.
Dr. Bill Stone followed lunch with a look at BMR corn silage and the possible benefit in transition cow health. Proper management can affect cow health and production.
Rick Grant, President of the Miner Institute in Chazy, NY spoke next about cow comfort and the effect on profitability. He discussed the time budget of the cow, as well as stocking rate and how changes can positively or negatively effect health and production.
Vermont Governor Jim Douglas stepped in during the afternoon to personally thank the farmers for their hard work and dedication to their business, as well as to the state. The Governor was presented with a plaque to thank him for his support of the conference. Governor Douglas has never missed the conference since becoming governor in 2001.
The afternoon was wrapped up by Associate Professor of Animal Science and Associate of Cornell Pro-Dairy, Tom Overton. Tom discussed 10 key herd management opportunities on dairy farms in 2010 and how these opportunities will affect profit margins.
The Vermont Dairy Producers’ Conference was held on February 25, 2010 at the Sheraton Hotel & Conference Center in South Burlington. The opening remarks were made by VT US Senator Bernie Sanders and comedian Carl Hurley led the conference.
Dr. Bill Stone, a technical support and field research veterinarian with Diamond V Technologies followed the welcome with a discussion about limiting the amount of shrink in forages to reduce feed costs. He highlighted forage and silo managements practices, feeding management, and feed additives that can affect the level of shrink, in turn affecting the bottom line in feed costs.
Dr. Andrè Wright, Associate Professor, and the new Chair of the Department of Animal Science at UVM followed. His discussion focused on the research he has been conducting for the last 10 years in modifying dairy methane production.
The morning was wrapped up by Dr. Julie Smith, a UVM Extension Dairy Specialist. Dr. Smith talked about the importance of preparing for a Bio-Disaster. She used footage from the 2001 foot-and-mouth outbreak in the United Kingdom to show the tragedy that can occur.
Lunch was provided with VT Secretary of Agriculture Roger Allbee in attendance to speak to the group about the current dairy economy and events in the state, including the recent visit from US Secretary of Agriculture, Tom Vilsack.
Dr. Bill Stone followed lunch with a look at BMR corn silage and the possible benefit in transition cow health. Proper management can affect cow health and production.
Rick Grant, President of the Miner Institute in Chazy, NY spoke next about cow comfort and the effect on profitability. He discussed the time budget of the cow, as well as stocking rate and how changes can positively or negatively effect health and production.
Vermont Governor Jim Douglas stepped in during the afternoon to personally thank the farmers for their hard work and dedication to their business, as well as to the state. The Governor was presented with a plaque to thank him for his support of the conference. Governor Douglas has never missed the conference since becoming governor in 2001.
The afternoon was wrapped up by Associate Professor of Animal Science and Associate of Cornell Pro-Dairy, Tom Overton. Tom discussed 10 key herd management opportunities on dairy farms in 2010 and how these opportunities will affect profit margins.
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