Our Cooperative’s Financial Trends—Great Start to 2010! · PDF filecompares favorably to our previous 5-year ... Sylvester Katemana, Gosbert Kabanda, ... End o’ Way Farm near

Ag Credit ACA • www.agcredit.net • June 2010

Our Cooperative’s Financial Trends—Great Start to 2010!

Ag Credit Hosts Tanzanian Visitors

Business Tools for Turbulent Times

Leaderis published quarterly for stockholders, directors and friends of Ag Credit, Agricultural Credit Association.

PresidentNeil Jordan

Board Of DirectorsHal Dalton, ChairmanJerry Layman, Vice ChairmanPaul AleyGary BaldosserCharles BostdorffDeborah Johlin-BachHarold Lunde, Ph.D.Keith RobertsScott SchroederMike Stump

EditorConstance Ruth

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Contents

June 2010, Ag Credit ACA | 3

Page 11

Page 16

Page 14

Message from the PresidentOur Cooperative’s Financial Trends—Great Start for 2010! 4

Ag Credit Hosts Tanzanian Visitors 5

The Lighter SideA Summer Day with the Grandkids 6

A Rural PerspectiveThe Family Farm—Alive and Well 7

Industry NewsRecent Land Sales 8

Women in Agriculture 9

Benchmarking and Communication—Your Keys to Progress 10

Women’s Night Out 11

FeatureBusiness Tools for Turbulent Times 12

Community NewsA Visit to Oberlin, Ohio 14

Association NewsAround Ag Credit 16

Ag Credit, ACA Scholarship 18

Consolidate Financial Reports 20

Ag Credit, ACA 2010 Board of Directors 21

In Memory of Sarah T. Frey 21

Farm Safety Round-Up 22

LifestyleLeadership and Success: The Winners Manual for the Game of Life 24

Agates from Agatha 26

2010 County Fair Schedule 27

Neil Jordan

4 | June 2010, Ag Credit ACA

Our Cooperative’s Financial Trends—Great Start for 2010!

Message from the President

Our Cooperative had an excellent 2009, and we’ve experienced a great start for 2010 with our outstanding first quarter results. Despite the major challenges of the general economy, our credit quality remains sound, our loan volume growth continues, our projected net income level for 2010 is on a record pace and our resulting net worth continues to grow.

Net Loan Volume

With declining interest rates throughout 2008 and 2009, we have been able to offer very attractive variable and fixed rate loan products to our Members. These rates and products have led to a record growth year of $116.6 million volume increase at 12/31/09 over the previous year’s end. Additionally, our first quarter end volume reflects a $114.9 million or 12.67% increase over last year’s first quarter end volume.

During this low interest rate period, we are especially pleased with the competitive pricing we have from our Funding Corporation in New Jersey. As investors flee to quality they are recognizing farmers have never failed to repay an issuance of debt. They see Farm Credit bonds as being a high quality investment as evidenced by our bond pricings narrowing closer to Treasuries. For this reason, we can offer very attractive fixed-rate products. Because of our Members’ concerns over the general economy and the likelihood

of future increasing interest rates—over 70% of our portfolio is now tied to these attractive fixed-rate products.

Net Income

Our past year’s net earnings of $19.78 compares favorably to our previous 5-year average of earnings of between $19 million to $22 million. This final net figure is still more impressive when we consider our cooperative prudently placed a record $4.51 million into its allowance for loan losses (ALL) last year. Given the condition of the general economy, the increasing issues associated with the escalating national debt and the related concerns of foreign purchasers of U.S. debt, we felt it prudent to provide for potential loan losses in positive net earnings times.

With our continuing loan volume growth, our first quarter 2010 net earnings came in at $7.219 million. Aided by an insurance premium refund and previous Financial

Assistance Corporation refund totaling $940 thousand, this first quarter is $2.24 million higher than the first quarter in 2009. This very strong first quarter income suggests a very positive net earnings year for our Cooperative.

Net Worth

Our net worth (equity) is essential because it provides a stable base for our business. This equity provides a cushion for the risks related to lending money and supplements our allowance for loan losses. We ended 2009 with a net worth of $150.83 million and have ended our first quarter at $159.75 million.

This growing equity also provides future increased net earnings as these funds are loaned out to our Members. As our equity grows, our net earnings secured from that equity add to our “bottom line.”

While we’re a long way from 2010 year-end, with these statistics we believe we are truly off to a great start for 2010! n

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Ag Credit recently had the pleasure of hosting a group of visitors from Bukoba, Tanzania. Bukoba is a rural village located in the northwestern part of the country on the western edge of Lake Victoria roughly 50 miles from the equator. Representing the Kagera Farmers Co-Op Bank, Ltd. was their General Manager, Sylvester R. Katemana. Also visiting from the Mayawa Farmers Service Centre were Charles J. Kamando, General Manager, Bonus Basil Mbaga, Administration and Finance, and Gosbert R. Kabanda, Processing & Marketing Manager. Serving as guides for the group were Wellington Kamala, who resides in Bowling Green but was born and raised in Bukoba, Karl Gringrich of Findlay, who has international business experience and ties to Tanzania and Dr. Harold Lunde, PhD., a member of Ag Credit’s Board of Directors.

Mayawa is a member-based association of farmers in the Bukoba and Misenyi districts of Tanzania. The general objective of Mayawa is to improve the cash income and food security of the rural households in the districts. The association’s mission is to increase, diversify, and commercialize their agricultural production. The beneficiaries are mainly subsistence farmers who grow vanilla, mushrooms, coffee, banana, cassava, beans and other similar produce for their personal consumption and as an income source.

The current low interest rate environment in the U.S. astonished the Tanzanians because they are used to rates in the 10% + range. Sylvester commented he tries to keep rates to the local farmers around 10%, while loans for commercial purposes may be quoted at the 20% range. For borrowers who are unable to qualify for loans from a bank, private lenders may charge prohibitive usury rates of 20% per month. The guests were also very intrigued with the nationwide cooperative structure of the Farm Credit System, and the apparent ease in which our local loans are funded by bonds sold throughout the world.

Those of us from Ag Credit were impressed with the parallels between their

relatively young co-operative efforts and the beginnings of the Farm Credit System in the early 1900’s. We wish Mayawa the very best as they build the basis for a modern and productive agricultural production and financial industry in Tanzania. It was a pleasure to host them for lunch and to present a short introductory session to cooperative lending in the U.S. n

Ag Credit Hosts Tanzanian VisitorsBy Dan Ebert, Ag Credit CFO

Learning about each other seated around the Board Room table.

Outside the Admin. Office from left to right is Wellington Lamala, Bonus Basil Mbaga, Charles J. Kamando, Sylvester Katemana, Gosbert Kabanda, Harold Linde, Neil Jordan and Karl Gingrich.

Section Heading

A Summer DAy with the GrAnDkiDS

The Lighter Side


Pat Leimbach

Pat Leimbach is a farm widow who still farms with her son Orrin at End o’ Way Farm near Vermilion, Ohio. Her late husband, Paul, and her father-in-law, Henry, were both directors of the Production Credit Association at Ashland, Ohio during the 1960s. Pat wrote A Country Wife column for the Elyria, Ohio, Chronicle Telegram for many years, as well as for farm magazines nationwide. She has shared her lively wit with audiences in 48 states and five Canadian provinces. Among those audiences have been dozens of Farm Credit groups.

She is also the author of three books, A Thread of Blue Denim, All My Meadows, and Harvest of Bittersweet. Pat’s books can still be obtained by contacting her at End o’ Way, 8888 Bank Street, Vermilion, Ohio 44089.

One never drives through the suburbs without overtaking some svelte yuppie jogging along, arms pumping, breasts bouncing, fantasizing, I suppose, on her next 10K race. I used to wallow in jealousy at the sight of them. However, much as I aspired to be a runner, I never worked up to a 10K.

Nowadays, I’m more inclined to holler, “Save yourself, Girlie Girl! You’re coming into the grandmother phase. You’re going to need that energy.”

I’m thinking this today as I climb a mile uphill from the river valley lugging four plastic sacks filled with the gear of three grandchildren and a grandniece. We never set out for the river without my stern pronouncement, “Remember that you carry back what you carry down!” (My sole burden was a can of Off™)

But then, they didn’t carry this stuff down. They wore it, and the towels were dry on the down trip. Besides they’re busy picking Queen Ann’s lace for me, running to show me the “drop of blood” in the center where Queen Ann pricked her finger making the lace.

What am I doing climbing a mile uphill in 90 degree heat? I never did this for my sons. Once they could swim, I cut them loose. Ah me … there was so much work to do. When would I have found the time with 40 bean pickers swarming the place and a market load to build every day?

It was lovely at the river, as it always is on a summer afternoon. We walked the shallows, I in my old sneakers, they on tough little feet, feeling out

the bottom, sitting in the rapids, climbing on fallen logs, each child staking claim to his own boulder, Sophie the lab plunging into the water, shaking herself all over us.

There’s a rope hanging from a horizontal branch of sycamore. The children leapt for it, swinging out and hurling themselves into the deeper water.

“Watch me, Gram!” each shouted in turn. “Watch me!”

Watch them? I can’t take my eyes off them. I never get my fill of the sight of their lithe little tanned bodies, their delight oozing out in squeals.

I was weary when we reached the house. I planned to take them home and then rest, but first they helped me gather sticks from the lawn and we set fire to the accumulation.

“Let’s roast some hot dogs, Gram!” said Paul. “I haven’t had anything to eat.”

Well, there were some hot dogs in the fridge … I thawed some buns and broke out the wiener forks and the catsup. Lisel phoned their mother to bring marshmallows.

They went home at 10:30 and Grandmother retreated to her kitchen to make up for lost time.

The difference between parents and grandparents is that parents think there’ll be time for all this indulgence tomorrow. Grandparents recognize that the time is now, or as Ronsard put it, “Cueillez de?s aujourd’hui les roses de la vie.” (Gather today the roses of life.)

Five years from now these kids won’t be phoning Grandma. They’ll be driving themselves off to some chlorinated pool. Maybe if I’m lucky, they’ll pack me into the back seat. n


A Rural Perspective

The Family Farm—Alive and WellBy James McConnell

James McConnell is a member of Ag Credit who farms 2,500 acres in southern Lorain County with his two brothers.

Jim McConnell

Family farming is all I’ve ever known. It was how we farmed when I was growing up and it is how we farm now. Family farming is how our neighbors always farmed and how they still farm. Nearly

every one of the farming operations in our township and county has gotten bigger over my lifetime but they are still considered a family farm. So why is there all this hoopla about the demise of the family farm? I don’t see it.

I don’t claim to be a historian with an arms length of academic credentials but having lived through and participated in the transition from what I call the “small family farm era” to the “large family farm era” ought to give me some credence to express my opinion. So, here it is:

Family farming certainly isn’t the same as it was a quarter or half century ago but has anything remained the same in this time period? How many of us can still shop at independently owned local drug or grocery stores or take in a movie on a single screen, family-run local movie theater? If my wife or daughters shop for clothes or shoes and the brands are something other than Carhart or Red Wing, it is certain they will be shopping at a retail chain store and not a local, family-owned business. TVs, appliances, home furnishings, hardware and even lumber are more likely to come from Best Buy, WalMart, Home Depot or Menards rather than a local, family-owned retail business. Numerous economic, sociological and cultural changes have driven this evolution from small, privately-owned businesses to huge investor-owned chains. This fact doesn’t seem to be a big deal to most of society.

Today’s family farm is bigger and more complex than the ones common in my youth, but this seems to be the result of adapting to economic realities, not due to any sinister political or sociological forces. Those families who have chosen to stay in agriculture have simply done what has been necessary to remain profitable.

I grew up on a 160-acre dairy farm with 30 cows, a few pigs and chickens and 100 acres of cropland. My parents and one (part-time) high school boy (and later my brothers and I) could do everything necessary to be done with the exception of baling hay or straw, filling silo, combining oats and wheat and picking corn. Those big jobs were handled by our extended family which included my grandfather, uncle and cousins who had their own farms. Our individual families shared equipment and labor when necessary but otherwise accomplished most everything with our own resources. The economic realities of agriculture well into the 1960’s, in our area, didn’t offer a great deal of incentive to expand and invest in larger facilities, more land and bigger equipment.

As economic conditions and sometimes family needs changed, many families chose to take advantage of the efficiencies offered by larger equipment and improved technology and not only increased the scale of their operations but became either multi-generational or included more family members in the same operation. Our farm grew by necessity to accommodate my brothers and me into the business. The expansion required more cows, more acres and bigger, more efficient equipment. Narrowing margins for milk and commodities forced further expansion and more employees until we chose to concentrate on grain farming. We still hire some extra (part-time) help when needed like my parents did 60 years ago.

So what is different from 60 years ago? Lots of things have changed. We have bigger, more efficient equipment and we farm more acres, just like our neighbors. Our farm, like most farms, is more specialized with fewer enterprises. In some cases this just means there are no longer pigs and chickens to go along with the cows and crops. There may be more people around to do the work now but they are just as likely to be family members as outside hired help.

What remains the same is—our farm and our neighbors’ farms are still FAMILY owned. We haven’t sold our assets to some conglomerate and just hang around to do the bidding for some corporate bosses. We make our own decisions about managing our business and still will succeed or fail because of those choices. Except for the number of digits left of the decimal point, our current balance sheet and income statements are not much different from 60 years ago. We still strive to own more than we owe and sell more than we buy.

I wish our country would wake up and realize what really makes American agriculture so productive, and perhaps the strongest economic asset the United States has, is the family farm is still alive and well. The latest USDA statistics I’ve seen indicate each of us in production agriculture produce enough to feed 155 other people and 98% of today’s farms can be classified as “family farms”. It should be obvious agriculture’s ability to adjust to changing economic, political and social forces (in other words “roll with the punches”) is precisely because we are separate and independently owned businesses driven to succeed for the sake of our families. The family farm ought to be recognized and hailed as the model for economic resilience and stability not perceived and portrayed as some dying relic of a bygone era. n

Recent Land SalesInformation provided in this column is only a sample of recent land sales around Ohio. Since there are many factors taken into consideration when a buyer and seller establish a price, these sales may or may not reflect the current market value in any particular area and should not be used in lieu of a formal appraisal to establish a value for a particular tract of land.

Attention Auctioneers:Would you like to be featured in a future column? It’s easy. Visit our Web site www.agcredit.net and click on the Auctioneer’s link to find the Recent Land Sale form online. Fax the completed forms to 419-663-4120.

The following information was provided by:Walter Brothers Inc.901 N. Main St.Findlay, OH 45840www.walterbrosinc.comPhone: 419-424-0944

Location 1Acres: 39.92Township: Big SpringsCounty: SenecaDate of Sale: 12-03-09Selling Price: $186,000UnimprovedDescription: Flat, tillable land.

Location 2Acres: 157.226Township: Orange County: HancockDate of Sale: 11-14-09Selling Price: $691,480UnimprovedDescription: Sloping on top with 3 acres of woods to the rear.

Location 3Acres: 333.528Township: UnionCounty: HancockDate of Sale: 12-02-09Selling Price: $1,509,214ImprovedDescription: Building site includes a 3-bedroom, 2-bath home and machine shed. This flat, level, river farm is all tillable except for the building site.

Location 4Acres: 97.368Township: Big LickCounty: HancockDate of Sale: 12-03-09Selling Price: $425,985UnimprovedDescription: This farm has 14.71 acres of woods

The following information was provided by:Craig A. Miley Realty & Auction703 Harding Way West Galion, OH 44833www.MileyRealty.com Phone: 419-468-4602

Location 1Acres: 80Township: CongressCounty: MorrowDate of Sale: 10-30-09Selling Price: $360,000ImprovedDescription: Nice, 7-room, 4-bedroom, 1-½ bath home built in 1948. 50’ by 38’ bank barn, 32’ by 22’ shop, 2-car detached garage, organic certifiable, over 5,200 foot road frontage

The following information was provided by Schrader Real Estate & Auction Co.P.O. Box 508950 North Liberty DriveColumbia City, IN 46725www.schraderauction.com Phone: 260-244-7606

Location 1Acres: 237+Township: HarrisonCounty: Paulding Date of Sale: 10-1-2009Selling Price: $1,400,000UnimprovedDescription: None available

Location 2Acres: 68County: Allen Date of Sale: 11-17-09Selling Price: $266,000UnimprovedDescription: 58 acres tillable, 10 acres woods

The following information was provided by:Straley Realty & Auctioneer, Inc.419 West Ervin Rd.Van Wert, OH 45891Phone: 419-238-9733

Location 1Acres: 310 Township: HarrisonCounty: PauldingDate of Sale: 2-15-2010Selling Price: $1,707,200UnimprovedDescription: None available

Industry News



Women in AgricultureBy Danna Myerholtz

The 17th Annual Women in Agriculture Conference was held at Nazareth Hall in Grand Rapids, OH. Over 130 women of all ages, including FFA students from the area, attended for a day of education, relaxation and motivation. Several FFA students from the area also attended the conference.

The day started with breakfast and then breakout sessions began. The sessions included: Passing Down the Family Farm; Grain Marketing I & II; Take Charge of Dining With Diabetes; Just Do It For The Health Of It; Liability—What Do I Need To Know?; Protecting Your IRAs and Retirement Assets; Save It Safely; Fabric Postcards, Is It Trash Or A Treasure?; Identity Theft; Wind Energy Today; and CAUV—Does My Land Qualify?

The keynote speaker was Lindsay Hill, ABN Radio Owner and Farm Broadcaster. She and her husband, Andy Lance, live on her family farm in Logan Co. and farm with her father and brother.

Lindsay talked about how Agriculture is under attack from HUSU and how Ohio is ground zero for them right now. She told the group HUSU raises millions of dollars each year but less than 1% of that money actually goes to our local animal shelters.

She talked about how we need to get people to see the connection between the farm and the table. Lindsay is concerned about over regulation of farm families, no longer dealing with public opinions, cuts in extension

funding and cuts in agricultural education. She feels we need to be united in public. In closing, Lindsay urged, “We need to go out and tell our story.” n

Food preservation Workshop

The Women In Agriculture planning committee for 2010


Industry News

Recently our children had their routine checkups with the pediatrician. During the visit, one of the papers we needed to complete was a questionnaire on various benchmarks regarding child development. These benchmarks ranged anywhere from fine motor skills to communication. The checkup was also an opportunity for my wife and me to meet with the doctor and ask a number of questions regarding our children’s progress. Evaluating the benchmarks on the questionnaire was a good exercise and perhaps eased our mind; however, the discussion we had with the doctor, who has the advantage of seeing thousands of children over their medical career, was very valuable as well. From the questions raised and the answers given, we felt more in tune with the development of our children and why the benchmarks were so important.

The doctor visit made me think of the relationship between you (as a borrower) and your Ag Credit Account Officer. As a borrower, you have discussions with your Account Officer regarding financial benchmarks associated with your farming operation. Financial benchmarks such as current ratio, owner equity and coverage ratio are discussed and compared from one year to the next and are also compared to industry recommendations. Comparing your financial ratios to industry benchmarks is a valuable tool, which can point to areas needing attention and areas of strength. The exercise may ease your mind or bring you to the realization--some changes need to happen. Just as importantly, are the overall discussions you can have with your lender addressing why the benchmarks are important to the trends and direction of your farming operation. Your Account Officer is seeing hundreds of farming operations over his/her Ag Credit career and can draw upon those experiences to help answer questions.

The discussion and questions raised with your Account Officer are dependent upon your type of business enterprise. For example, if you are a cash grain farmer you have recently

experienced some of the best commodity prices in your lifetime. Topics of discussion between you and your Account Officer could involve the following questions.

• Are the “good times” of the past few years going to continue? Will you be able to cash flow if net margins decrease?

• Did a large crop insurance payment related to volatile commodity prices cause earnings to be exceptional for a year or two? Is your operation basing future repayment ability (equipment and land purchases) on those possibly abnormal one-time events?

• Is your operation growing enough working capital during these good times?

• Is your operation being cautious on capital purchases enough to ensure it will bring the desired return to the operation?

• How much will lower net margins impact your operation’s ability to pay for the newly acquired $5,500/acre farm ground or the new $300,000 combine?

Another topic of discussion a little different from the cash grain enterprise would be in the dairy or hog enterprise. The more recent experience of financial stress in these industries would make the discussion a little

different. The topics of discussion could involve these questions.

• Is your operation’s breakeven price (including term debt repayment) sustainable over the long term when compared to historic prices?

• Will your operation be disciplined during the periods of profitability to pay ahead on the restructured debt, accumulated during the stressful times, knowing how cyclical the market can be?

• Has your operation historically been able to pay off losses during the profitable period before the next downward cycle happens?

• What is the plan if a partial liquidation of assets is necessary for the ultimate survival of your operation?These types of discussions are necessary

to either ward off complacency or help your operation survive through a difficult market. Just like early intervention with kids can make their development and progress go smoothly, the same can be the case for growth and stability of your farming operation. We encourage you to talk with your Account Officer to review your financial situation periodically and gain a better understanding of where your financial trend is going. n

Benchmarking and Communication—Your Keys to ProgressBy Brian Ricker


More than 60 women from the Bucyrus and Upper Sandusky area met at the United Methodist Church in Sycamore for an evening of fun and good food. They were there for the annual Women’s Night Out, sponsored jointly by the Bucyrus and Upper Sandusky Ag Credit offices. The evening was one way for the Ag Credit staff to say “thank you” for the important role women play in keeping agriculture and Ag Credit strong.

After the meal, the ladies moved into the church sanctuary for the program. Jan Kocher introduced employees and wives from the two offices. Mandy Stacy, Home Loan Originator for Wyandot County, talked about the Country Mortgage programs available for buying or building a new home. Karen Frederick, Home Loan Originator for Crawford County, also attended the event.

The Sycamore Drama group performed “Old Testament Rewind.” The performers are Sandy Glasscock, Diane Wise, Liz Snyder and Barb Phillips from the Sycamore United Methodist Church, plus Angie Garrabrant from the Nevada UMC, Union Salem and Eden Chapel Churches. The ladies have been performing together for three years and have performed their play all over Ohio. The play is a fun, powerful presentation of God’s loving and unending pursuit of His people from the beginning of Genesis through the restoration of Israel. Who knew the Old Testament could be so much fun?

After the play, a drawing was held. Winners of flowers were Melissa Rife, Vicki DeLong, Sue Pfeiffer, Mandy Tomeko, Rosie Reer, Joyce Schimpf, and Louise Frombaugh. As all the ladies left, they were invited to pick an Ag Credit / Country Mortgage item to take home. n

Contact information:The meal was prepared by: Special Occasions Catering, 419-294-3088

To contact the Sycamore Drama Group: 567-232-0814 (Sandy Glasscock)

Women’s Night OutBy Jan Kocher

Feature

Business Tools for Turbulent TimesBy Dr. David M. Kohl

It is not getting any easier to make a buck in farming. Rising input costs, volatility in prices, global trade issues, the value of the dollar, and issues with the domestic and global economy will divide the economic winners and losers in the next decade.

An individual producer cannot do much to shape macroeconomic and agricultural policy issues; however, one should not throw up their hands in frustration, but become an advocate for the industry. Producers have many opportunities to seize greater control of their destiny by using good old-fashioned business planning. This starts by exploring why you are in business, where your business is now, and where you want it to go in the future. One must plan not only for the next two years, but also the next decade.

The future will present challenges and opportunities in the agricultural business environment. For example, 70 percent of American farmland will change hands by the year 2025 because of age demographics of the sector. The land ownership structure of agricultural businesses in the future will be much different than that of traditional farms, including rent and lease of land and other assets, and strategic alliances with major players in the industry. Many producers will control assets rather than owning them. This fact, along with the large capital investment involved in farming stresses the need for strategic business planning. Those with well thought-out plans for success will be better able to communicate what they are thinking, planning, and anticipating. This forethought will allow them to present a more favorable

case to lenders, accountants, and investors, and take advantage of opportunities as they arise.

Testing ScenariosWith the volatile economic times there

will be much latitude for opportunity and success, but also failure. In these turbulent times, both beginning and established producers will need to test the agricultural business plan against “but what if” scenarios. This process is called scenario testing or economic game planning. Like a coach plots various scenarios before the game with a variety of outcomes, a business person should parallel this process.

Start with the operating budget and establish a broad set of assumptions, i.e. prices, costs, interest rates, currency exchange rates. Blend these scenarios together and come out with a most likely scenario. Then assign probabilities to several different scenarios, such as a 30 percent likelihood of an above average year, 60 percent chance of a reasonable year, and a 10 percent chance of a less than stellar year. The point here is

to begin developing a strategy for what you would do in each situation. Finally, consult with your lender, accountant, production consultant, and business partner, who can bring a constructive, objective eye to the plan.

Business Planning BasicsAs I travel across the country, many

beginning producers inquire about the basics of business planning, which include choosing the most effective business model and selecting business partners. Choosing the best business model involves an assessment of individual abilities, resources, markets, etc. For some, it may be niche or value-added markets including local, natural, and organic. To others, it may include the traditional model focusing on efficiency, but still being effective in balancing business, family, and personal lifestyle. Others may choose larger units with complex business models including enterprises outside of agriculture. Regardless of size and scope of the model, a sound business plan will not be an option, but a requirement for future success.

The land ownership structure of agricultural businesses in the future will be much different than that of traditional farms, including rent and lease of land and other assets, and strategic alliances with major players in the industry.



About the AuthorDavid Kohl received his M.S. and Ph.D. degrees in Agricultural

Economics from Cornell University. For 25 years, Kohl was Professor of Agricultural Finance and Small Business Management and Entrepreneurship in the Department of Agricultural and Applied Economics at Virginia Tech, Blacksburg, Virginia. He was on special leave with the Royal Bank of Canada working on advanced initiatives for two years, and also assisted in the launch of the successful entrepreneurship program at Cornell University. Kohl is Professor Emeritus in the AAEC Department at Virginia Tech.

Kohl has traveled over 7 million miles throughout his professional career! He has conducted more than 5,000 workshops and seminars for agricultural groups such as bankers, Farm Credit, FSA, and regulators, as well as producer and agribusiness groups. He has published four books and over 1,000 articles on financial and business-related topics in journals, extension, and other popular publications. Kohl regularly writes for Ag Lender and Corn and Soybean Digest.

He has received 11 major teaching awards while teaching over 10,000 students, and 17 major Extension and Public Service awards from Virginia Tech, Cornell University, and state and national organizations. Kohl is a two-time recipient of the prestigious American Agricultural Economics Association’s Outstanding Teaching Award. Kohl is only one of five professors in the nearly 100-year history of the Association to receive the award twice. He received the Governor’s award for his distinguished service to Virginia agriculture, the youngest recipient to receive this award.

Kohl has addressed the American Bankers Agricultural Conference for over 30 consecutive years, and has appeared before numerous state bankers’ schools and conferences throughout the U.S., Canada, Mexico, and the world. He has also been one of the top rated instructors at the LSU and Colorado Graduate Schools of Banking, and is Chancellor of Farm Credit University, which has trained over 700 lenders using an online and face-to-face educational approach.

As facilitator of the United States Farm Financial Standards Task Force and member of the Canadian Agricultural Financial Standards Task Force, Dr. Kohl was one of the leaders in establishing guidelines for the standardized reporting and analysis of agricultural producers’ financial information on a national and international basis. The Kohl Agribusiness Centre has been established in the College of Agriculture and Life Sciences at Virginia Tech in honor of his long-term commitment to practical teaching, research, and extension.

Kohl is currently President of AgriVisions, LLC, a knowledge-based consulting business providing cutting-edge programs to leading agricultural organizations worldwide. He is also business coach and part owner of Homestead Creamery, a value added dairy business in the Blue Ridge Mountains.

On a more personal note, Dave enjoys playing basketball and likes most sports, farms, dogs, and covered bridges; he dislikes lazy students, administrative bureaucracies, and paperwork!

If you would like to keep up with Kohl’s information and perspectives, you can find his weekly columns on the following Web sites:

Ag Globe Trotter: www.farm-credit.com Road Warrior of Agriculture: www.cornandsoybeandigest.com

Contact Information: AgriVisions, LLC E-mail Address: [email protected] 1700 Kraft Drive, Suite 2412 Web Page (with photo):Blacksburg, VA 24060 http://www.aaec.vt.edu/aaec/PeopleFacultyKohl.htmlPhone: (540) 961-2094 Contact Person for Scheduling:FAX: (540) 961-6094 Angela Meadows, (540) 719-0752

Revised September 2009

David M. Kohl

When people think about starting or transitioning a family business, there can be much initial excitement along with some apprehension. Recognizing partner material will be imperative in this process. Determining whether you need a business partner or employee who is a family member or someone outside of the family will be critical to the planning process. Do not assume a family member will be the most suitable partner. Sometimes your best draft pick is outside the family.

The bottom line is as an agricultural entrepreneur, you should seek partners and alliances that bring complementary strengths to the table. If your passion is production, consider a team member with strong financial, marketing, or operational skills. If you are a “big picture” idea person, you might want a detail-oriented operations specialist. In the planning process, look for individuals to share the journey. The overall key is to choose partners who you can communicate with thru a shared vision, goals, objectives, and business plan outcomes.

Business planning is a tool for turbulent times that can put you a step ahead in business sustainability and the game of life. n

Warm breezes were at our backs as we drove to Oberlin, Ohio, our featured community for this issue of the Leader. Oberlin is only 15 minutes south of Lake Erie in Lorain County. This artsy town, also located just 30 minutes west of Cleveland, is easy to find and has easy access via five major highways.

Founded in 1833, this small community is home to the nation’s leading liberal arts college, Oberlin College. The town is rich with history. Until 1861, Oberlin was an important stop for fleeing slaves on the Underground Railroad as they made their way into Canada. Since the townspeople, faculty and students were sympathetic to the slaves the town became known as “The Town That Started the Civil War”.

As we headed down the tree lined streets to the historic downtown district it became evident with the diverse sights and sounds that this was going to be a fun and interesting day. What caught my eye immediately was the beautiful, lush green lawns of Tappan Square, a park located in the heart of the college and retail area. The scene was postcard perfect with flowering trees bursting in various hues of pink, purple and white and

daffodils and tulips in full bloom. Tappan Square has a unique bandstand where summer evening concerts are held along with other community events. It was a great place to kick back, people-watch and take in the fragrances of the flowers.

Since we found an open parking spot directly in front of Gibson’s Bakery I guessed we’d just have to save the calorie counting for another day. Oberlin’s oldest business, located at 23 W. College Street, has been owned by the Gibson family for six generations. Al and Rick Gibson are the current owners and they were both there the day we visited. Al told me their best selling donut is the whole-wheat cake donut. He said their customers claim it is the best to be found anywhere. Well, that sales pitch was enough to talk me into buying a couple. (Whole-wheat flour makes them a little healthier … Right?) Gibson’s has all the bases covered with their homemade baked goods, breads, cakes, pies, and Deli Sandwiches. All of the family-recipe baked goods are made on the second floor and the chocolate is made on the third. If you happen to be in the area you definitely want to stop at Gibson’s.

For a trip down memory lane, we stopped at the Ben Franklin Store. Remember the gallop-n-go pony horse sticks? They have those! They also carry other toys and items I haven’t seen in years. There is

even a bookstore nook inside Ben Franklin’s for avid readers or bored husbands.

Due to time constraints we could not visit each place we would have liked but we did spend a few minutes browsing at The Ginko Gallery and Studio which is a working fiber art studio and contemporary craft gallery. This gallery/studio has a large selection of unusual handcrafted jewelry items and pottery for sale. If you are looking for that perfect classy outfit or want to make your own jewelry, stop in at Bead Paradise. They have beautiful women’s

By Laurie Mierke with pictures by Connie Ruth

A Visit to Oberlin, Ohio


Gibson’s Bakery

The Ginko Gallery and Studio

Tappan Square

Community News


clothes and carry ready-made jewelry, jewelry making supplies, purses, accessories and natural skin care products.

Strolling down the street we found the New Union Center for the Arts where volunteers were setting up for a fund-raising auction that evening. We were encouraged to browse and check out the original artworks and we even had the option of placing a bid and foregoing the festive event.

If art is your interest the Allen Memorial Art Museum is located right on the northeast corner of Tappan Square. The museum is home to more than 14,000 works of art from virtually every culture. This is one of the finest college/university collections in the U.S. Unfortunately, the interior of the museum is undergoing renovation and is closed until the Fall of 2011.

Like most college towns, there are many dining options in the area. We chose the Java Zone, an authentic Mediterranean deli and coffee shop where they create and serve vegetarian and signature sandwich wraps. Also on the menu are salads and pastries. Of course what would a coffee shop be without a variety of specialty coffees available hot or iced.

There are many historic attractions in Oberlin. We wanted to tour the Frank Lloyd Wright House which is now owned by Oberlin College but it is only open for tours on alternate Sundays. This prairie-style home designed by the famous architect, Frank Lloyd Wright, is right in town. We were able to walk the grounds and peek in the windows.

We drove through the Westwood Cemetery which is the final resting place

for abolitionists, former slaves and many other historic figures. At the gate we found a box containing a map with the location of some of the graves and short biography of the individuals buried there. The Oberlin Heritage center maintains and gives tours of three historic homes: The Monroe House—built in 1866 for Giles W. Shurtleff, a civil war general & abolitionist. The Jewitt House—built in 1884, home of an early Oberlin chemistry professor. The Little Red Schoolhouse—built in 1836, was Oberlin’s first schoolhouse.

Oberlin is referred to as “the most cosmopolitan small town in America” and after our visit today I can see why. I know I will be back. For more information go to: www.oberlin.org.

Happy Travels – Laurie Mierke

Allen Art Museum

Frank Lloyd Wright house

Bead Paradise

Westwood Cemetery grave

Section HeadingAssociation News

Calendar

Employee News


June 8 & July 13 Risk Management Series at Norwalk Ag Credit office, Findlay Ag Center and Bowling Green OSU Extension office 6:30 to 9:30 p.m.

June 9 & July 14 Risk Management Series at Tri Rivers Career Center in Marion, 6:30 to 9:30 p.m.

June 10 & July 8 Risk Management Series at Ole Zim’s Wagon Shed in Gibsonburg, 6:30 to 9:30 p.m.

June 22 & July 27 Risk Management Series at Putnam Co. Education Center in Ottawa, 6:30 to 9:30 p.m.

June 27 Fremont & Bowling Green Appreciation Day at Toledo Zoo

June 30 Marion Appreciation Day at Marion County Fair

July 4 Independence Day (offices closed on Monday, July 5)

July 28 Tiffin Appreciation Day at Seneca County Fair

August 13–14 Risk Management Series Weekend Event at Hilton Gardens, Perrysburg

Have a Minute?Check out our Web site www.agcredit.net or find us on Facebook http://www.facebook.com/agcredit and Twitter http://twitter.com/agcredit

Linda Tuttle RetiresThe Findlay branch office hosted an open house on March 30th

at the Ag Service Center in honor of Account Officer, Linda Tuttle’s retirement. Linda began her career at Ag Credit on November 16, 1983, as a Customer Service Representative. She was promoted to Account Officer in 1990 and continued to work in the Findlay office until her retirement on April 1, 2010.

Employees on the Move Due to Linda Tuttle’s retirement, Jeff Rickenbacher, AVP of

Kenton Branch will assume responsibilities in Findlay while still servicing the members in Kenton. In addition to Jeff’s move to the Findlay office, Amy Combs has transferred from Findlay to the Kenton office and Melissa Toland (formerly of the Kenton office) is now working out of the Findlay Branch.

New EmployeeLinda Dye joined the Tiffin team as a part-time CSR in April.

Welcome, Linda!

http://ofbf.org/uploads/OFLCPetition.pdfThe above link leads to the Ohioans for Livestock Care petition

to support Ohio’s Livestock Care Standards Board and to protect our farms from Washington D.C. lobbyists. Our Ag Credit Board of Directors and CEO, Neil Jordan, support this petition which reads, “Last year Ohio voters passed a Constitutional Amendment to create a Ohio Livestock Care Standards Board to establish rules and regulations concerning livestock and poultry care in Ohio. Serving on this Board are representatives from family farmers, veterinarians, food safety experts, a local humane society and OSU Ag Experts. Now, lobbyists and lawyers are trying to undermine this Board before it even has a chance to carry out its mission by urging the passage of proposals that could cause damage to Ohio family farmers. By signing the petition you are pledging support to protect Ohio agriculture and give the board a chance to do what Ohio voters intended: Assure the protection and proper treatment of livestock and poultry without destroying Ohio’s agricultural economy in the process.”

Please note: by signing this petition you are also agreeing to be listed publicly as a member of the Ohioans for Livestock Care coalition.

Petitions can be signed at local Ag Credit branches.

Above: Co-workers, family and friends wish Linda (right) a happy retirement.

Ohioans for Livestock Care


Advertising Now Available in Leader MagazineContact the Norwalk Ag Credit office if you are interested in advertising in the Leader magazine which goes to more than 7,000 households in 18 Ohio counties. Call Connie Ruth at 1-800-686-0756 for more information.

The America’s Farmers Grow Communities Project is a program, sponsored by the Monsanto Fund, to support farming communities by offering farmers the opportunity to register to win $2,500 for their favorite community charity. Recipients could include 4-H, FFA, school or other civic organization, i.e. hospital, fire department or food pantry. It only takes about five minutes to apply and the application period is May 1–July 31, 2010. The program started with awards in Missouri, Arkansas and Iowa. Due to its success, the program has now been expanded to 298 counties in California, Kansas, Nebraska, North Carolina, Ohio, South Carolina and South Dakota.

Eligible farmers can fill out an entry form at www.growcommunities.com or by calling 1-877-267-3332 to receive a copy of the entry form and rules. Completed entries can be mailed to Jane Winburn, 914 Spruce Street, St. Louis, Mo. 63102. Farmers, age 21 and over, who are actively involved in producing a minimum of 250 acres of corn, soybeans and/or cotton, 40 acres of open field vegetables, or at least 10 acres of vegetables grown in protected culture, are eligible. One winner will be drawn for each eligible county from all eligible entrants received for that county. No purchase is necessary to enter or win. Winners are randomly selected by a third party. Monsanto has provided and available at the State 4-H Office: Sample flyer; Basic Q&A on the program; and Sample press release that Monsanto will distribute.

Ohio counties eligible include: Allen, Ashland, Auglaize, Brown, Butler, Champaign, Clark, Clermont, Clinton, Crawford, Darke, Defiance, Delaware, Erie, Fairfield, Fayette, Fulton, Greene, Hancock, Hardin, Henry, Highland, Huron, Knox, Licking, Logan, Lorain, Lucas, Madison, Marion, Mercer, Miami, Montgomery, Morrow, Ottawa, Paulding, Pickaway, Preble, Putnam, Richland, Ross, Sandusky, Seneca, Shelby, Stark, Union, Van Wert, Warren, Wayne, Williams, Wood, and Wyandot.

On March 19 several Norwalk Ag Credit members boarded the bus for a Ladies Day outing in Medina County. It was a beautiful day for the event. The first stop was Boyert’s Greenhouse, then a lunch stop at Mapleside Farm and Restaurant. After lunch, the ladies had an afternoon of shopping at Root Candles and shops in historic Medina Square.

On September 11, 2010, Zach Profit, son of Van Wert members Terry and Vicki Profit, will be “dotting the i” at the OSU vs. Miami Florida game. The tradition of “i” dot began in 1938 when sousaphone player, Glen R. Johnson did a big kick, a turn and a deep bow before the Buckeye Battle Cry. The crowd roared and it became a traditional part of the show ever after. Being the “i dotter” has been a goal Zach has worked to achieve for a very long time. Zach is a senior at The Ohio State University majoring in Ag Business Management. Look for an article about Zach and his dream in the next issue of the Leader.

The “Buying Food Locally” series, featuring area food growers, will continue in the next issue.

Monsanto Sponsors Project

In our Next Issue of the Leader

Women’s Day Norwalk

Michelle Ebersole and Kathy Hacker post for the camera

Waiting for others to board the limo bus

Pandora, Ohio

419-384-7373John Schulte

Schulte’S logging

Buyer of standing timberLow impact logging

“Harvesting Quality Trees with Care”


Association News


Joe Leiser Ag Credit, ACA ScholarshipExplanation of Eligibility2010-2011 School Year

A total of three Ag Credit, ACA scholarships will be given for the 2010-11 school year.* Three students currently studying an agricultural curriculum at an accredited 4 (four) year school or at an accredited 2 (two) year school will each receive a $1,000 award.

To be eligible, applicant must be an immediate family member (dependent) of a voting stockholder of Ag Credit, ACA with a current loan. At the time of application the student must be attending a post-secondary school majoring in an agriculture related subject. Graduating High School seniors are not eligible to apply.

• Children of current employees or directors of Ag Credit, ACA are not eligible for this scholarship.

• Previous recipients of scholarship funds are not eligible to re-apply.

• Previous applicants (who have not received scholarship funds) may apply every year they are eligible.

• The scholarship is to be used to pay education-related expenses and will be issued in the form of a joint check with the school.

• Applications must be postmarked on or before June 30, 2010.

Mail to: ATTENTION: June O’NeillAg Credit, ACA610 W. Lytle St.Fostoria, OH 44830

The selection committee will consist of three current board members of Ag Credit, ACA. They will review all complete applications and choose the three recipients. No interviews will be conducted. The process will be completed by July 31, 2010.

*The scholarship selection committee reserves the right to reduce or expand the number of scholarships awarded based upon the number of eligible and complete applications received.


✃

Joe Leiser Memorial Ag Credit, ACA Scholarship Application

(Please Print or Type)2010-2011 Academic Year

Name ______________________________________________________ County ______________________________________________________

Home address ____________________________________________________________________________________________________________

___________________________________________________________ Home phone number ___________________________________________

Immediate family who are voting members of Ag Credit __________________________________________________________________________

College/University/Tech School you have been attending at the time of application (At the time of application the student must be attending a

post-secondary school at least as a first quarter/semester freshman) __________________________________________________________________

Address _________________________________________________________________________________________________________________

Class status: 2010-2011 school year ______________________________ G.P.A. ______________________________________________________

Major ______________________________________________________ Minor _______________________________________________________

(must be agriculture related)

Two year program Four year program

Attach to Application – 1) Current Official Transcript including the most recent term. Transcripts may be faxed (419-435-6847) separate from the

application, however, the original is to be mailed. In lieu of an official transcript, an Advising Report AND copies of grade reports from each term

attended will be accepted. 2) Two letters of recommendation from sources at the discretion of the applicant.

Incomplete applications will not be considered.

Please submit the following on no more than four (4) 8 1/2” x 11” sheets of paper (one side only). Additional sheets and backs WILL NOT BE

CONSIDERED. Please provide information from the past two years only. Answers must be either typed or printed.

1) Prepare a resume including the following items:

1) your past and present co-curricular activities including offices and extent of involvement

2) your work experience or other commitments that may involve a large amount of time

3) your scholastic accomplishments

(Make a definite distinction among the three categories above.)

2) From your resume, pick one activity that has benefited you the most and explain.

3) Why have you decided on an agricultural program?

4) Tell more about yourself and explain why you deserve to receive this scholarship.


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.

ConsolidatedBalance

Sheets

ConsolidatedStatements of

Income(UNAUDITED)

Association News

March 31, December 31,(dollars in thousands) 2010 2009

(unaudited) (audited)

AssetsCash 5,616$ 402$ Investment securities: Held to maturity (fair value of $4,172 and $4,662 respectively) 4,316 4,316

Loans 1,029,009 1,046,184 Less: allowance for loan losses 7,410 8,830

Net loans 1,021,599 1,037,354

Accrued interest receivable 15,374 16,638Investment in other Farm Credit institutions 13,973 13,973Premises and equipment, net 2,085 2,061Due from AgFirst Farm Credit Bank 2,408 7,402Other assets 1,714 1,676

Total assets 1,067,085$ 1,083,822$

LiabilitiesNotes payable to AgFirst Farm Credit Bank 892,176$ 916,460$ Accrued interest payable 2,338 2,298Patronage refund payable 102 5,647Other liabilities 12,719 8,590

Total liabilities 907,335 932,995

Commitments and contingencies

Members' EquityCapital stock and participation certificates 15,644 13,621Retained earnings Allocated 80,598 81,005 Unallocated 63,508 56,201

Total members' equity 159,750 150,827

Total liabilities and members' equity 1,067,085$ 1,083,822$

AgCredit Agricultural Credit Association

Consolidated Balance Sheets

(dollars in thousands) 2010 2009

Interest IncomeInvestment securities 72$ $ —Loans 14,399 13,580

Total interest income 14,471 13,580

Interest ExpenseNotes payable to AgFirst Farm Credit Bank 6,853 7,184

Net interest income 7,618 6,396 Provision for (reversal of allowance for) loan losses 308 575

Net interest income after provision for (reversal of allowance for) loan losses 7,310 5,821

Noninterest IncomeLoan fees 194 355Fees for financially related services 55 70Equity in earnings of other Farm Credit institutions 1,705 1,545Insurance Fund refund 940 —Other noninterest income 42 39

Total noninterest income 2,936 2,009

Noninterest ExpenseSalaries and employee benefits 1,853 1,677Occupancy and equipment 179 176Insurance Fund premium 154 282Other operating expenses 802 683

Total noninterest expense 2,988 2,818

Income before income taxes 7,258 5,012Provision (benefit) for income taxes 39 33

Net income 7,219$ 4,979$

ended March 31,

Consolidated Statements of Income (unaudited)

For the three months

March 31, December 31,(dollars in thousands) 2010 2009

(unaudited) (audited)

AssetsCash 5,616$ 402$ Investment securities: Held to maturity (fair value of $4,172 and $4,662 respectively) 4,316 4,316

Loans 1,029,009 1,046,184 Less: allowance for loan losses 7,410 8,830

Net loans 1,021,599 1,037,354

Accrued interest receivable 15,374 16,638Investment in other Farm Credit institutions 13,973 13,973Premises and equipment, net 2,085 2,061Due from AgFirst Farm Credit Bank 2,408 7,402Other assets 1,714 1,676

Total assets 1,067,085$ 1,083,822$

LiabilitiesNotes payable to AgFirst Farm Credit Bank 892,176$ 916,460$ Accrued interest payable 2,338 2,298Patronage refund payable 102 5,647Other liabilities 12,719 8,590

Total liabilities 907,335 932,995

Commitments and contingencies

Members' EquityCapital stock and participation certificates 15,644 13,621Retained earnings Allocated 80,598 81,005 Unallocated 63,508 56,201

Total members' equity 159,750 150,827

Total liabilities and members' equity 1,067,085$ 1,083,822$

AgCredit Agricultural Credit Association

Consolidated Balance Sheets

(dollars in thousands) 2010 2009

Interest IncomeInvestment securities 72$ $ —Loans 14,399 13,580

Total interest income 14,471 13,580

Interest ExpenseNotes payable to AgFirst Farm Credit Bank 6,853 7,184

Net interest income 7,618 6,396 Provision for (reversal of allowance for) loan losses 308 575

Net interest income after provision for (reversal of allowance for) loan losses 7,310 5,821

Noninterest IncomeLoan fees 194 355Fees for financially related services 55 70Equity in earnings of other Farm Credit institutions 1,705 1,545Insurance Fund refund 940 —Other noninterest income 42 39

Total noninterest income 2,936 2,009

Noninterest ExpenseSalaries and employee benefits 1,853 1,677Occupancy and equipment 179 176Insurance Fund premium 154 282Other operating expenses 802 683

Total noninterest expense 2,988 2,818

Income before income taxes 7,258 5,012Provision (benefit) for income taxes 39 33

Net income 7,219$ 4,979$

ended March 31,

Consolidated Statements of Income (unaudited)

For the three months


Members and employees of Ag Credit lost a friend and co-worker on March 6, 2010.

Sarah began working for Ag Credit in the Upper Sandusky branch office during August, 2008. She was responsible for the imaging of existing and new loan files and assisted in other office duties on a daily basis. Sarah was enthusiastic about her job and always offered her thoughts as to how Ag Credit could better serve our members. She was a valued employee whose friendly smile and kind words could be counted on to brighten the day of our members and her co-workers.

In addition to working for Ag Credit, Sarah assisted her husband in their family-owned heating and air conditioning business and on their family farm. She was an avid hunter and enjoyed the outdoors.

The Ag Credit family extends our deepest sympathy to her husband, Jason, four children and extended family and friends. Sarah is missed and will always be remembered by those who knew her. n

In Memory of Sarah T. Frey

LENGTH YEARREGION/COUNTIES DIRECTOR OF TERM ELECTED

1 - Paulding, Putnam & Van Wert Scott Schroeder 3 years 2008

2 - Henry, Wood & W. Lucas Charles Bostdorff 3 years 2010

3 - Hancock & Hardin Jerry Layman 3 years 2010

4 - E. Lucas*, Ottawa & Sandusky Deborah Johlin-Bach 3 years 2010

5 – Seneca Gary Baldosser 3 years 2009

6 - Marion & Wyandot Keith Roberts 3 years 2009

7 - Crawford & Morrow Michael Stump 3 years 2008

8 - Erie, Huron & Lorain Harold Dalton 3 years 2009

9 - Outside Director Paul Aley 3 years 2008

10 – Outside Director Dr. Harold Lunde 3 years 2010

*E. Lucas includes the city of Oregon and Jerusalem Twp.

Ag Credit, ACA2010 Board Of Directors

2011 Nominating Committee MembersCOUNTY MEMBER

Crawford Dick Wagner

Erie Howard Schuster

Hancock Christine Freed

Hardin Jan Layman

Henry Ryan Meyer

Huron John Brooks

Lorain Kevin Ziegler

Lucas Tom Wardell

Marion Richard Baldinger

COUNTY MEMBER

Morrow William Goodman

Ottawa Michael Harder

Paulding James Stoller

Putnam Dennis Schroeder

Sandusky Mark Root

Seneca Gregory Haubert

Van Wert Charles Pohlman

Wood Dale Brown

Wyandot Kevin Boes

1967–2010


Association News

Third graders in Putnam County recently attended the Farm Safety Round-Up at the farm of Dale and Ruth Gerding, in Ottawa. This was the 11th year the Gerdings have hosted the event. Over the years more than 5,500 students have learned from this educational day. This year 505 children from all 13 Putnam County elementary schools were able to attend. These half-day sessions were designed to give children a hands-on learning approach to farm safety. Several sessions throughout the day covered safety topics such as grain bin entrapment, lawnmowers, poison, sun, water, tractors, chemicals, electricity, guns and smokeless tobacco. There was also a mock ATV accident to demonstrate EMT proceedures and the exciting arrival of a Life Flight helicopter.

According to the National Children’s Center for Rural and Agricultural Health and Safety, over 900 youth died between 1995 and 2002 in farm related incidents. In addition, an estimated 3,026 injuries occurred to children under the age of 10 in the year 2006 alone. These statistics show the need to regularly stress farm safety. The Farm Safety Round-Up educates children about the dangers in and around the farm but keeps the activites fun and engaging. Sponsors of the day included Ag Credit’s Ottawa branch office, Ohio State University, Farm Bureau and Putnam County Health Dept. Presenters for the day were provided by Glandorf Warehouse, Paulding-Putnam Electrical Cooperative, Putnam County Extension office, Ag Credit, Farm Bureau, and Putnam County Office of Public Safety and others.

Area elementary students shared their experiences with us by writing about their favorite part of the camp. n

Farm Safety Round-UpBy Jenny Warner

Casey

Katelyn

Riley


Jarret

Jaden

Rhane

Jessica


Lifestyle

The Winners Manual for the Game of Life by Jim Tressel, Head Coach of The Ohio State Buckeyes, is one of the best books about leadership and success I have read in a long time. It is refreshing to learn how Tressel is teaching and leading our young athletes to achieve all they can be, both on and off the football field. I highly recommend this book for Ag Credit customers and employees and everyone of any age, status or position in life.

“If the game of life ended tonight, would you be a winner?” Tressel says he first heard that question asked by Bobby Richardson, the famous baseball player in 1969, when he was a teenager at a Fellowship for Christian Athletes camp. He says: “That question has continued to intrigue me throughout my life, and in a way, it has defined my life as a son, a husband, a father, and a coach.”

The Winners Manual is Tressel’s attempt to help answer the question and capture the essence of a 400-page handbook he and his staff give to football players as they enter each new year at The Ohio State University. This is their textbook. Obviously, the players’ entire version of the Winners Manual is not included in this book. But Tressel has tried to provide the heart of it—the sayings and ideas that have been most important to his players.

According to Tressel, the Winners Manual is not a book about football as much as it is about life.

He believes it can help to improve the quality of one’s life by helping a person to be more successful in their work and in their relations with others. Tressel believes if you struggle with the concept of purpose and with setting tangible, realistic goals, the Winners Manual can be a pivotal point in your life.

The published version of the Winners Manual has three sections. Part 1, The Game Plan, lays the groundwork for all of the fundamentals. Part 2, The Big Ten Fundamentals, is considered by Tressel to be bedrock building blocks of success. Part 3, Game Changers, contains the stories of people who have personally inspired Tressel and helped him put his life on the football field into proper perspective. Finally, in the

Epilogue, Tressel addresses the question with which he begins his book, and discusses what he believes to be God’s Fundamentals: #1 Know Him, #2 Love Him, and #3 Serve Him.

“Success is the inner satisfaction and peace of mind that comes from knowing I did the best I was capable of doing for the group,” says Tressel. This takes away any external characterization of success and puts the responsibility on the individual to define his/her own success in terms of “peace of mind.” Success is not only helping oneself; it is also helping others to reach their goals.

Tressel believes human beings were created not just to exist and pass through this world, but to live with purpose. He says: “We must never let goals, adversity or even success define us. If we lose a game, we are not losers—that’s not who we are. And by the same token, if we win a game, that doesn’t make us wonderful people. We achieved our goal, and that has its place, but that success—or any failure—doesn’t define us.”

Each year Tressel requires his players to fill out a “Block O of Life Goals Sheet.” He believes the process of goal setting is highly useful because it makes the players think. He insists the goals must be specific and measureable, and he uses the Goal Sheet of each player in his evaluation of their performance at least once a year. He tells

players his passion is to help them achieve their goals. But he wants their goals to encompass all of life and not just football.

Tressel believes, “If you have a plan for your purpose, I think you’ll be a better mother, a better teacher, a better cornerback or left fielder or welder. And the more defined your purpose becomes, the better you will be at your goals…Have you taken time lately to sit and think about why you’re here? How would you respond if I were to ask, what is your purpose in life? Out of that purpose will flow the goals, dreams, and desires you want to accomplish.”

According to Tressel, the Block O of Life can help to create order in the life of anyone. He believes it helps to organize one’s thinking and make one more effective. Tressel says the Block O makes life … “more observable … I can see how I’m doing in each area by looking at the goals I’m setting and achieving, or not achieving.”

The Block O is divided into two halves. The top half is the part of our lives we consider our purpose; the bottom half represents our goals. Tressel says: “As coaches, we commit ourselves to making sure that every young man who plays football at Ohio State knows that life is not just about football. We pledge to his mother and father, and whoever else cares about him, that his time at Ohio State is going to be a whole-life experience. We aren’t going to diminish the value of playing football … but that’s not the only thing he’s going to learn.”

Each player at OSU is expected to complete a Block O of Life for himself personally, use it on a regular basis as a road map for his life, and revise and update it as needed. Two large posters are displayed on the front wall of the players’ meeting room. One is the team’s mission statement which outlines what is expected from the players and the team. The other is an eight-foot diagram of the Block O of Life.

Purpose is located on the top half of the Block O. It comprises those aspects of life that define who we are as individuals and the kind of people we want to become. Tressel starts with purpose because he believes spiritual

Book Review by Dr. Harold Lunde

Leadership and Success: The Winners Manual for the Game of Life


beliefs, ethical values, and commitment to personal integrity, family, and community, are the foundation for all of one’s goals and everything else we do in life.

On the bottom half of the Block O, the players list their goals. This section focuses on what we do, as opposed to who we are. As one would expect, football is the players’ favorite subject and their common bond. But, Tressel believes it should not negatively affect a player’s dreams about what he wants to become. OSU coaches try to give each player a plan to achieve team goals and at the same time achieve their individual goals.

If a player comes to Ohio State with no spiritual background, he is introduced to a spiritual journey as part of a complete, well-rounded life and encouraged to grow spiritually. Those players who are far along in their spiritual journey become the leaders in that area and have a positive impact on the other team members.

Tressel believes there are three types of motivation. First, there is “fear motivation” which says if you don’t do something, you are going to be grounded, benched, cut or fired. Second, there is “reward motivation” which promises a reward for obedience or recognition or extra privilege or a pay increase for better performance. Both the fear and the reward motivators eventually lose their effectiveness. Tressel says, “If a player runs laps long enough, he’ll know he can run them, but he’ll eventually ask, what’s the point of all this running?” Tressel explains the third and most effective type of motivation stems from purpose. “Purpose motivation” is based on

wisdom and understanding. The player who is motivated by purpose says, “Now I understand why I need to train or exercise to be in good physical condition, or have some quiet time to strengthen my mental or spiritual condition.” This motivation comes from within.

Tressel says, “I don’t find it uncomfortable at all to live out my faith in a public setting. But I do think it’s important to go the extra mile with people who don’t necessarily believe what I do. I want them to think that he (Tressel) treats me better than some people who believe what I do. I think that’s a little of what Jesus did with his life … Belief, to my way of thinking, is taking the faith you have and activating it.”

In the epilogue or conclusion of the Winners Manual, Tressel repeats the question he used to begin his book and that has motivated him throughout his life … “If the game of life ended tonight, would you be a winner?” the epilogue describes his own faith journey and the answer he has found to that important question.

He believes the game of life is an “inside job.” Much of our success comes from inner strength, inner awareness of our weaknesses and strong points, and inner resolve. But, ultimately, if we strip away all the striving for awards and honors, or power and wealth, we come away empty if there is nothing bigger to live for.

Tressel believes purpose is a gift from God. He says: “Without him, I would still be searching for purpose in my life. Lasting goals are also from God, and they affect the people around us for good. And every component of the Block O of Life can be traced back to principles discussed and fleshed out in

the Bible. Of course, they work outside of any religious arena, but the point is that they work.”

Tressel says: “So, my approach with players is to take them from whatever background they’re from, whatever moral and ethical roots they have, and whatever religious upbringing they’ve experienced, and try to help them move farther down the road. I’ve never had a player tell me he felt uncomfortable with my approach or that I jammed religion down his throat. I respect our players too much to do anything like that. I would never be unfair to anyone.”

Tressel indicates the practice of his Christian faith in his role as coach has never been a problem for his players. He says: “In fact, I’ve heard the opposite from my players. They appreciate my position and the team rules that derive from it. When guys commit to playing for us, they already know where I’m coming from spiritually, and many sincerely desire a deeper walk with God. But even if they don’t feel that desire, I’m going to love them, help them get better at what they do, and make them vital parts of the team. That approach comes directly from my faith, which teaches me that I should treat others as I want to be treated.”

In the OSU edition of the Winners Manual, the state motto of Ohio is printed which reads: “With God All Things Are Possible.” Tressel says: “That’s really what it’s all about for our state, our nation, and our place in the world. It’s not about me.”

Tressel closes with the simple poem from Edward Hale that the OSU players robustly say together as a final motivation when they leave the locker room for a game: “I am only one. But I am one. I can’t do everything, but I can do something. And that I can do, I ought to do, and what I ought to do, by the grace of God, I shall do.” GO BUCKS! n

“We must never let goals, adversity or even success define us. If we lose a game, we are not losers—that’s not who we are. And by the same token, if we win a game, that doesn’t make us wonderful people. We achieved our goal, and that has its place, but that success—or any failure—doesn’t define us.”


Lifestyle

By Connie Ruth, aka Agatha CreditNote: Agatha Credit is the nickname my late husband, Dan, bestowed upon me when I first started working at Ag Credit. He enjoyed the enthusiasm I had for my new job.

Listening for AdviceThe summer season of celebrations is upon us. First came Mother’s Day and this month we will celebrate graduations and the beginning of wedding season.

As always, Mother’s Day brought a flood of memories of the births of two daughters and the adoption of our third. Dan and I were always glad to have girls. When people asked us if we wanted to try for a boy Dan would tell them with a completely straight face, “No, if I have a son, I will have to learn about sports.” Little did he know our daughters would be athletes and he would have to learn about sports after all.

Dan did not live to see Anna through grad school but he was happy to see her graduate from college and marry a man he believed would be a great life partner for her. He once told our son’s-in-law, Chad and Casey, “You are the sons I never knew I wanted.” It was true.

It seems I ask my daughters for advice more and more as I get older. In the past 24 hours I have asked firstborn, Kate, for advice about cooking, second-born, Anna, for advice about buying a bike and have gotten unsolicited, but much appreciated, fashion advice from daughter #3, Jen.

As they get their degrees, Anna and Casey are better equipped to give me advice than I them. They have travelled all over the world, taken chances, worked at a variety of jobs, set goals, written grants, organized groups. They not only talk the talk, they walk the walk! I realize they don’t need any advice from me but I am always flattered when they ask for my opinion.

I am missing Dan this week as Jen and I drive up to Connecticut to see Anna and Casey get their graduate degrees. I thought about Dan as I signed their graduation cards and thought about what he would write inside. Instead of giving them advice it was more his

style to just scrawl, “Love, Dad” and wait to tell them how proud he was and how much he loved them when he saw them in person and could give them a hug. He gave a lot of hugs but usually didn’t give advice to anyone (even his adult children) unless they asked for it. He didn’t give unsolicited advice to anyone—except me! Most of the advice he gave me pertained to the maintenance of our 130+ year old farmhouse. Several things he tried to teach me but I resisted—not wanting to think of a time when he wouldn’t be around to relight the furnace himself. He tried to prepare me for his absence and it worked to a degree, but there were things I just didn’t let myself think about. Now, as I fumble, I notice little things he did to show me the way. He took pictures of things, drew me diagrams and wrote me reminders. He left certain tools right where he knew I would find them. I hear his advice in my ear when I am driving and need to slow down or not make such a sharp turn and I listen and smile remembering his frustration with me when I was at the wheel.

Yesterday when we were turning the water back on in the barn we realized the pipe hadn’t been drained properly last fall and it had frozen and burst. I had no idea what to do besides turn the water off. I have resumed my job of balancing the checkbook and doing more home maintenance, but fixing the burst plumbing is beyond my realm. Just as I think we might have to haul water to the barn all summer, I hear a little voice inside me whispering, “Don’t stress about it. Just call the plumber.”

Have a wonderful summer! n

Agatha

For High School GraduatesI found an article from Readers Digest magazine with a sampling of responses given by people after being asked what advice they would give to graduates venturing out in the work world. The typical answers were: “Follow your dreams” (15%); “Work hard,” (11%); or “Save more than you spend,” (7%). These are all good bits of advice, but here are the answers I liked best:

Be curious, ask questions, and listen to the answers. Learn something new every day. Take risks, apologize and forgive. Be kind and embrace joy. L.M., Eastpoint, MI

Life itself isn’t fair. Get over it and don’t blame others. I.M., Orange, CA

It is not how much money you make; it is how you manage the money you do make. I.S., George, Iowa

Pray. L. H., Strykersville, NY

Choose your attitude each day: Own it and don’t let others determine your happiness. N. R., Homer, MI

Speak like an adult: Drop wow, man, and like from your vocabulary. W. R., Loris, SC

Always give 100% at work—then leave it at work, and give 100% at home. J. K., Tampa FL

Early to bed and early to rise, then work like hell and advertise. N. K., West Palm Beach, FL

In relationships, focus on the 90% you like rather than the 10% you don’t like. G. C., Lake Forest, CA

Agatha’s all-time favorite advice for kids starting jobs:

Shave. Use good grammar. Be at least five minutes early. Sit up straight. Don’t mumble. E. S., Falcon, CO

I couldn’t have said it better myself!


JUNE FAIRSPaulding County (Paulding) ..................................... June 14-19Pickaway County (Circleville) ................................. June 19-26Putnam County (Ottawa) ......................................... June 22-27

JUNE/JULY FAIRSMarion County (Marion) .......................................... June 28-July 4 Trumbull County (Cortland) .................................... June 29-July 4

JULY FAIRS Harrison County (Cadiz) .......................................... July 6-10Clinton County (Wilmington) .................................. July 10-17Lawrence County (Proctorville) .............................. July 10-17Madison County (London) ....................................... July 10-17Logan County (Bellefontaine) ................................. July 13-18Jackson County (Wellston) ...................................... July 16-24Franklin County (Hilliard) ....................................... July 17-24Crawford County (Bucyrus) .................................... July 18-24Adams County (West Union) ................................... July 18-24Perry County (New Lexington) ............................... July 19-24Warren County (Lebanon) ....................................... July 19-24Fayette County (Washington C.H.) .......................... July 19-24Ottawa County (Oak Harbor) ................................... July 19-25Carroll County (Carrollton) ..................................... July 20-25Clark County (Springfield) ..................................... July 23-30Knox County (Mt. Vernon) ...................................... July 24-31Butler County (Hamilton) ........................................ July 25-31Clermont County (Owensville) ................................ July 25-31Shelby County (Sidney) ........................................... July 25-31Vinton County (McArthur) ...................................... July 25-31

JULY/ AUGUST FAIRS Summit County (Tallmadge) .................................... July 24-Aug 1Union County (Marysville) ...................................... July 25-Aug 1Seneca County (Tiffin) ............................................. July 25-Aug 1Lucas County (Maumee) .......................................... July 27-Aug 1Pike County (Piketon) .............................................. July 30-Aug 7Ohio State Fair (Columbus) ..................................... July 28-Aug 8Preble County (Eaton) .............................................. July 31-Aug 7

AUGUST FAIRS Auglaize County (Wapakoneta) ............................... Aug 1-7Greene County (Xenia) ............................................ Aug 1-7Medina County (Medina) ......................................... Aug 2-8Gallia County (Gallipolis) ........................................ Aug 2-7Columbiana County (Lisbon) .................................. Aug 2-8Wood County (Bowling Green) ............................... Aug 3-9Champaign County (Urbana) ................................... Aug 6-13Athens County (Athens) .......................................... Aug 6-14Ross County (Chillicothe)........................................ Aug 7-14Hartford Ind (Licking County) ................................. Aug 8-14Richland County (Mansfield) .................................. Aug 8-14Cuyahoga County (Berea) ........................................ Aug 9-15Scioto County (Lucasville) ..................................... Aug 9-14Ashtabula County (Jefferson) .................................. Aug 10-15

Erie County (Sandusky) ........................................... Aug 10-15Attica Independent (Seneca County) ....................... Aug 10-14Henry County (Napoleon) ........................................ Aug 13-19Mercer County (Celina) ........................................... Aug 13-19Miami County (Troy) ............................................... Aug 13-19Muskingum County (Zanesville) ............................. Aug 15-21Holmes County (Millersburg) .................................. Aug 16-21Huron County (Norwalk) ........................................ Aug 16-21Meigs County (Pomeroy) ......................................... Aug 16-21Jefferson County (Smithfield) .................................. Aug 17-22Lake County (Painesville) ....................................... Aug 17-22Allen County (Lima) ................................................ Aug 20-28Darke County (Greenville) ...................................... Aug 20-28Defiance County (Hicksville) .................................. Aug 21-28Monroe County (Woodsfield) .................................. Aug 23-28Lorain County (Wellington) ..................................... Aug 23-29Portage County (Randolph) ..................................... Aug 24-29Sandusky County (Fremont) .................................... Aug 24-29

AUGUST/ SEPTEMBER FAIRSNoble County (Caldwell) ........................................ Aug 30-Sept 4Morrow County (Mt Gilead) .................................... Aug 30-Sept 6Stark County (Canton) ............................................. Aug 31-Sept 6

SEPTEMBER FAIRSHancock County (Findlay) ....................................... Sept 1-6Mahoning County (Canfield) .................................. Sept 1-6Montgomery County (Dayton) ................................ Sept 1-6Richwood Independent (Union County) .................. Sept 1-6Van Wert County (Van Wert) ................................... Sept 1-8Geauga County (Burton) .......................................... Sept 2-6Fulton County (Wauseon) ........................................ Sept 3-9Washington County (Marietta)................................. Sept 4-7Highland County (Hillsboro) ................................... Sept 4-11Morgan County (McConnelsville) ........................... Sept 7-11Hardin County (Kenton) .......................................... Sept 7-12Belmont County (St. Clairsville) ............................. Sept 7-12Albany Independent (Athens County) ..................... Sept 8-12Wayne County (Wooster) ......................................... Sept 11-16Williams County (Montpelier) ................................. Sept 11-18Hocking County (Logan) ......................................... Sept 13-18Guernsey County (Old Washington) ........................ Sept 13-19Wyandot County (Upper Sandusky) ........................ Sept 14-19Bellville Independent (Richland County) ................ Sept 15-18Delaware County (Delaware) ................................. Sept 18-25Ashland County (Ashland) ...................................... Sept 19-25Tuscarawas County (Dover) .................................... Sept 20-26Barlow Independent (Washington County) .............. Sept 23-26

SEPTEMBER/ OCTOBER FAIRSBrown County (Georgetown)................................... Sept 27-Oct 2

OCTOBER FAIRSCoshocton County (Coshocton) ............................... Oct 1-7Loudonville Independent (Ashland County) ........... Oct 5-9

2010 County Fair Schedule

610 W. Lytle StreetFostoria, OH 44830

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PAIDCOLUMBIA SCPERMIT 1160

Where’s the Barn?Have you seen

this unique barn? Enter our contest and if your correct entry is drawn from the barrel, you will win an Ag Credit jacket. Even if you don’t know where the barn is,

send your entry saying “I don’t know” and you will have a chance to win a

$25 second chance prize. Good luck!

Name: _________________________________________________________

Phone Number: __________________________________________________

Local Ag Credit Branch Office: _____________________________________

Check here:

I know where the barn is! It is on _______________________ (road) in_____________________ (town) and ______________________(county).

If I win, send me a size _________________________ Ag Credit jacket.

I don’t know where the barn is but submit my entry for second chance prize.

Send completed entry by July 8, 2010 to: Ag Credit, ACABarn Contest X for Leader735A US Highway 20 East

Norwalk, OH 44857

All entries must be received by 5:00 p.m. on July 8, 2010.

Jackets are available in size small through XXXX-Large.

Send your completed entry to:Ag Credit, ACA - Barn Contest735A U.S. Highway 20 East

Norwalk, OH 44857

Documents

Our Cooperative’s Financial Trends—Great Start to 2010! · PDF filecompares favorably to our previous 5-year ... Sylvester Katemana, Gosbert Kabanda, ... End o’ Way Farm near