Northwest FCS Yields - Giving Back - Fall 2012

Fall 2012

Giving Back

Fall 2012

Simply put, stewardship is the careful and responsible management of something entrusted to one’s care. Just as farmers and ranchers have been entrusted to be good stewards of the land, our Northwest FCS team has the same responsibility – to be exceptional stewards of your cooperative. We must continue to care for and grow a strong and stable lending organization that will provide for the financing and related service needs of our member borrowers for generations to come.

At Northwest FCS, part of stewardship also means finding ways to help young producers get started and to support entrepreneurs in new, emerging markets. We are called by Congress to serve the full breadth of agriculture, from small, local growers to large, vertically-integrated operations. This is a stewardship responsibility we take seriously. Next year we will expand our AgVision program by offering existing customers a four-year extension in the program. This will give our veteran AgVision producers more time to build their management and financial skills as we enhance our education programs.

Agriculture’s roots grow deep in healthy, productive communities where talented employees, suppliers and vendors make the business of agriculture possible. Strong communities foster strong businesses. To complement the business side of our stewardship mission, we are putting our company’s talent and resources back into these communities. We will continue to enhance our support for safety, economic development, infrastructure, and quality of life projects to care for the people who live in the communities we serve.

Because our corporate roots are deeply ingrained in food production, we strongly support food bank networks that help less fortunate people in rural communities receive the food and nutrition they need. We encourage our employees to volunteer for regional and local food banks and encourage our customers to help us address hunger by donating their time, talent and treasures of bountiful food.

I am continually inspired by stories from customers and employees who share a passion for doing good work and helping others. Not because they have to. But, because they want to give back and make a difference in their schools, churches and communities. As responsible stewards, we care for and share our blessings and

business resources with others to the best extent we can. Together we accomplish great things.

FEATURE STORY > 4

New Second Harvest Distribution Center in Pasco, Wash. will increase food bank distribution from5 million to 9 million pounds of food a year.

Familiy Business Succession Planning

Seminar > 10

Business Management Center Calendar > 11

New Members Stock Program > 17

A Mission of Stewardship

yields

Who we are: Northwest Farm Credit Services is a

customer-owned, financial services cooperative, providing

more than $11 billion in credit, crop insurance, and related

services to farmers, ranchers, agribusinesses, commercial

fishermen, forest products producers, equipment dealers,

chemical suppliers, part-time farmers, and country

homeowners.

Board of DirectorsKevin Riel, Chair, Yakima, WA

Karen Schott, Vice Chair, Broadview, MT

Rick Barnes, Callahan, CA

Christy Burmeister-Smith , Newman Lake, WA

Drew Eggers, Meridian, ID

Jim Farmer, Nyssa, OR

Mark Gehring, Salem, OR

Dave Hedlin, Mount Vernon, WA

John Helle, Dillon, MT

Herb Karst, Billings, MT

Bruce Nelson, Spokane, WA

Dave Nisbet, Bay Center, WA

Julie Shiflett, Spokane, WA

Shawn Walters, Newdale, ID

About YieldsYields is produced for stockholders of Northwest FCS, an

Agricultural Credit Association. Comments and story ideas

can be sent to the Marketing Department, c/o Northwest

FCS, P.O. Box 2515, Spokane, Washington 99220-2515.

website: farm-credit.com

Northwest Farm Credit Services is an equal opportunity employer and does not discriminate on the basis of race, color, religion, sex, national origin, marital status, age, disability, disabled veteran, Vietnam era or other eligible veteran status.

yields Fall 2012 | 2

Phil DiPofi, President and CEO

Advocates in the Fight Against Hunger

yields Fall 2012 | 43 | Nor thwest Farm Credit Ser vices

Financial Insights

0

30

60

90

120

150

12 Actual 12 Budget 11 Actual 11 Budget

$144.6

$122.9$117.4

$112.6

Net Income(in millions)

0

2000

4000

6000

8000

10000


$9,072.7$8,565.0 $8,403.7 $8,568.6

Net Loan Volume(in millions)

0

2

4

6

8

10

12


$8.6

$10.6

$8.8

$7.6

Financially Related Services(in millions)

0

50

100

150

200

250

300


$214.2

$248.1 $255.0

$292.8

Nonaccrual Loan Volume &Acquired Property

(in millions)

0

3

6

9

12

15


13.2%13.9%

13.3% 13.3%

Core Capital Ratio

0

20

40

60

80

100

2012 2011

4.7% 7.1%2.9%

5.7%

92.4% 87.2%

Credit Quality

Acceptable OAEM Substandard

(September 30, 2012 and 2011)

We share a deep passion and appreciation for our agricultural roots. We’re

blessed to live in a region as bountiful as the Northwest, known for abundant

natural resources. Sometimes it’s not easy to see – amongst all this bounty –

the number of families in our community who go hungry. Sadly, some of the

hungriest counties in the Northwest are where we grow the most food.

Food banks across the country are seeing unprecedented

need for food assistance as they face the worst economic

recession since the 1930s. Rural communities, where

unemployment and underemployment are higher, face

tougher challenges with fewer resources. Hunger doesn’t

always mean a lack of generosity. Everything boils down to

phenomenal need and capacity – to source, fund, transport,

and distribute billions of pounds of food for the needy.

At Northwest Farm Credit Services, we are

closely tied to food production.

That’s why we’re investing our

time, talents and resources to help

less fortunate people receive the

food and nutrition they need.

5 | Nor thwest Farm Credit Ser vices yields Fall 2012 | 6

Today, millions of Americans are struggling with hunger.

Nationally, and across the Northwest, one in six people are

either hungry, or at risk for hunger. One in three of these

are children. An estimated 3 million rural households are

food insecure in communities that typically have smaller

food banks and less capacity to distribute fresh, perishable

product . The number of people seeking food assistance for

the first time is staggering. Many of these folks are educated,

have jobs, own homes, and tend to be older when a spouse

suddenly loses their job. Many say they waited more than

90 days to seek help putting food on the table.

At Northwest Farm Credit Services we have a responsibility

to care for people in need, especially in rural communities.

That’s why we strongly support food bank networks across the

Northwest. Our employees offer their leadership and expertise

to food bank boards of directors. They volunteer to help

regional and local food banks pack and sort food. We donate

money to food bank networks in Alaska, Idaho, Oregon,

Montana, and Washington. But, nothing is more important to

fighting hunger than the connection we share to the greatest

agricultural producers and processors in the country.

Feeding our neighbors

Second Harvest, in Spokane, Wash., is one of the food

bank organizations supported by Northwest FCS and

our customers. Second Harvest distributes more than 1.5

million pounds of donated food every month to people

in need throughout Eastern Washington and North Idaho.

Their partnerships with more than 250 neighborhood food

banks and meal centers make it possible to feed more than

48,000 people every week. Mindboggling. Yet, the numbers

aren’t keeping pace with the increasing need for food

assistance.

Last year, Second Harvest distributed an unprecedented

20.5 million pounds of donated food. More than half –

11 million pounds – was fresh produce and other perishable

food products. In three years, Second Harvest must increase

capacity by another 50 percent to meet the demanding need.

“Agricultural growers are a critical part of what we do,” says

Melissa Cloninger, Second Harvest Director of Community

and Corporate Relations. “We could not begin to meet this

challenge without our grower donors. They are the ones

bringing fresh, nutritious, perishable product to us, so we

can get it on the tables of families who are so in need.”

Since 2010, Washington

ranchers and the

Agri Beef Co. have

contributed $75,000

worth of beef to Second

Harvest, which translates

to more than 10,000

family-size portions of

beef, or 30,700 pounds of

product. Wheat growers are also joining forces by donating

a portion of their crop proceeds to the Washington Grain

Growers Against Hunger project. Grain industry donations

will help cover the costs of securing and warehousing food

for a service area that spans more than 51,000 square miles.

“We’re always talking about feeding the world. Maybe

we should start thinking about feeding our next door

neighbors first,” says Bruce Nelson, former board president

of Northwest FCS and the Washington Association of Wheat

Growers. “We all know the economy has turned down and

there are more and more struggling families to feed. When

we’re giving something to help food banks in our region we

can all walk away feeling good.”

Chasing the hunger train

Fighting hunger is a complex issue. But, when the rubber

meets the road, everything comes down to capacity –

funding, sourcing, storing, transporting, distributing, billions

of pounds of donated food. Plus, truckloads of logistics.

Feeding America is the nation’s leading domestic hunger-

relief charity. The Chicago-based organization helps

distribute food to a nation-wide network of more than 200

food bank organizations, including those supported by

Northwest FCS -- Second Harvest in Eastern Washington

and North Idaho, Food Lifeline in Western Washington, the

Montana Food Bank Network, Idaho Food Bank, Oregon

Food Bank, and Food Bank of Alaska, Inc .

“Feeding America knows

our greatest challenge

is sourcing food,” says

Melissa with Second

Harvest. “They help us resource food from large growers,

food processors, wholesalers and retail-grocery partners.

Our relationship with Feeding America makes it possible for

us to access loads of donated

food from companies like

General Mills, Kellogg and

ConAgra Foods. Many

Feeding America partners

donate cash, but they also

donate tons of food, like

pledging so many container-

loads of product a month.”

The challenge then becomes

logistics. How to get fresh,

perishable food to specific

areas of the country that

need it most. Feeding

America’s affiliates in Arizona

probably have all the melons

they can handle. They’re

looking for potatoes and

apples from the Northwest.

Areas hard hit with the drought this year will also need

Northwest produce and protein.

As a member of Feeding

America, food bank networks

use a point system (based on

the size of their service area

and number of clients served)

to “bid” on loads of donated

food. Points are distributed

once a month, and twice daily

the food bank networks can

access Feeding America’s

online system to source

the food they need. Transportation however, is funded

by member food banks who work logistics and budgets

to source food across the country. Imagine the impact of

rising fuel prices . Second Harvest, for example, has staff

dedicated solely to transportation and logistics as they

push to reduce costs.

Building capacity to serve others

Second Harvest recently completed renovations to

their 60-year-old warehouse in Spokane. More than

2,000 volunteers sort and box food here every year.

Northwest FCS employees actually hold the record for the

CoBank recently donated $1 million to

Feeding America. Funds will be designated to support rural areas

of the country where their Farm Credit

associationsdo business.

Food insecurity below U.S. average

Food insecurity near U.S. average

Food insecurity above U.S. average

Prevalence of food insecurity, average 2009-11

Source: Calculated by ERS based on Current Population Survey FoodSecurity Supplemental data.

Nationally, Feeding America supplies enough food to feed more than37 million Americanseach year, including

14 million children and3 million seniors.

(left to right) Mark Nonnenmacher, Northwest FCS Executive Vice President, Chuck Olsen, CoBank

Lead Relationship Manager, Eida Siegel, Northwest FCS Financial Specialist

most food sorted in a two-hour period, beating the closest

competition from Fairchild Air Force Base. Earlier this

year, Second Harvest asked the community for support to

meet the driving need for food assistance in the Columbia

Basin. We are proud to serve alongside our Northwest FCS

customers, Second Harvest donors, and members of the

building trades to support a 14,000-square-foot facility in

the Port of Pasco, Wash.

“The Second

Harvest

distribution

center in Pasco

demonstrates

how this

community

responds to a

need,” says Phil

DiPofi, President/CEO of Northwest FCS and Second Harvest

board member. “With the new facility and equipment,

Second Harvest will be able to increase food distribution

in the Columbia Basin from 5 million to 9 million pounds

a year. Northwest FCS is privileged to be a part of this

essential project and we’re encouraging our customers in

the region to participate with us.”

To fund the project out of the gates, Second Harvest used

Northwest FCS’ Agricultural and Rural Community Securities

(ARC) Financing Program. “Second Harvest needed

7 | Nor thwest Farm Credit Ser vices

financing with a shorter-term loan

commitment to build the facility

and then, long-term amortization

after fundraising is completed,”

explains Herb Sanders, Northwest

FCS Relationship Manager/VP

in Spokane. “They wanted to

use as much of their on going

fundraising income and cash

proceeds for food distribution. Not

for debt amortization. Fundraising for a project like this is

a process. You don’t know exactly how many funds you’re

going to bring in during the campaign, so you need to

build flexibility into the financing. Because Second Harvest

is so well managed, we were able to help finance the

distribution center, waive most of the loan fees and offer a

very good interest rate.”

The new Pasco distribution center provides 1,000 square

feet of cooler space and another 2,000 square feet of

freezer space in the heart of Columbia-Basin farmland. The

warehouse was designed to handle fresh and perishable

food with an area for growers to offload semi-trucks. The

2,200 square foot Volunteer Center is generously sponsored

by Northwest FCS and CoBank. Our Spokane employees

still remember packing food in the old, cold, dark, Spokane

warehouse. Now, Second Harvest volunteers in Pasco (and

Spokane) are treated to a comfortable, coffee-bistro style

break room and warm reception area.

Raising the barn for hunger

Imagine a warehouse like this, being built in six months (not

eight months), with all volunteer labor. Incredible. Members

of 10 different unions in the building and construction

trades donated

100 percent

of their labor

to erect and

complete the

project. Their

fellow engineers,

contractors,

suppliers

and vendors

dramatically

discounted time

and materials to

finish construction in September, just in time for harvest!

These in-kind donations represent nearly half of the $2.9

million needed for the first phase of the project.

“In the 35 years that I’ve been involved in organized

labor, I have never seen or heard of a project being done

to this magnitude,” said Dave Davis, President of Central

Washington Buildings Trade Council. “Very seldom do

industries and organizations get the opportunity to

accomplish something like this. When we look back, it will

be a defining moment in our lives, to help men, women

and children for generations to come. It’s a tremendous

feeling. As an organization, for us, sometimes I think we’re

a little misunderstood. But as organized labor and building

trades, I think this shows that we are not only part of the

construction photo

community, but

I believe the

community is

better off for us

being part of it.

To everyone who worked on this project, well done.”

On September 29, 2012, the Second Harvest Distribution

Center in Pasco proudly opened for business. Albeit, there

was still a little dust in the air and some fine tuning to

do. But, the Columbia Basin community came together

and celebrated that day. Skone and Connors Produce, a

Northwest FCS customer, delivered the first truckload of fresh

food – 40,000 pounds of potatoes and onions. Northwest

FCS employees from Yakima, Sunnyside, Prosser, Pasco,

Moses Lake and Spokane, along with their teammates from

CoBank, were there to celebrate too. There were boxes to

pack and hungry mouths to feed. In less than 30 minutes our

team repacked 40,000 pounds of produce to distribute to

neighborhood food banks. We think that’s a new record.

“Northwest Farm Credit Services and CoBank are the kind

of partners and donors that non-profit organizations dream

of,” says Jason Clark, President/CEO at Second Harvest.

“They donate financially, support us with volunteers, and

they have been phenomenal advocates. They’ve given us

their voices to build partnerships with the Columbia Basin

growers they serve. Northwest Farm Credit Services is the

kind of organization that truly shows their compassion by

being an all-in partner for the fight against hunger.”

Herb Sanders, Northwest FCS Relationship

Manager/Vice President

Dave Davis, President, Central Washington Buildings Trade Council,

Jason Clark, President/CEO Second Harvest (right)

Bill Shibley, Northwest FCS Regional Vice President



Rural Community GrantsAt Northwest FCS we are proud to be a part of the longstanding history of agriculture, forestry and fisheries in

the Northwest. We have been blessed with success by the customers we serve and the talented employees who

work here every day. That’s why we have a profound corporate responsibility to care for the rural communities

our customers and employees call home.

Northwest FCS Rural Community Grants are given to support creative, collaborative projects that address emerging

challenges and opportunities for rural communities. This year Northwest FCS, with support from CoBank, proudly

supported more than 70 rural community grants with contributions totaling more than $142,000.

Rural Community Grant projects come in all shapes and sizes. Some improve community infrastructure, like

buildings and facilities. Others support rural safety and health. The projects may be wildly diverse, yet they all

share one thing in common – community driven support.

Shelley Firth Rural Fire Department

Shelley, Idaho

It takes a special person who willingly responds to a life

threatening event. Yet, in rural volunteer fire departments

across the country highly-skilled, competent people are doing

just that – responding to the first calls for help from their

neighbors and friends.

The Shelley Firth Rural Fire District cares for 100 sq. miles and

about 8,500 people near Idaho Falls. Chief Mike Carter uses

grant dollars to stretch his budget for new equipment and

replacement gear. A firefighter’s “turn out” gear alone costs

about $2,000 and the district has 24 volunteers. Technology

for saving lives and property continues to improve, too. Like

the new First Responder rescue jacks recently purchased with

a Northwest FCS grant.

“We respond to a lot of car accidents with our first response

team,” explains Chief Mike. The extrication equipment we use –

jaws-of-life, spreaders, cutters – are all newer, pneumatic tools

that run on a motor. But, you just can’t get them into certain

places, like down a ravine or in a deep hole. The Hi-Lift First

Responder Jacks are an amazing new tool. If you know how

to use them, you can tear a car apart or lift and push heavy

objects. Farmers have used these jacks for years but with a

new design, they’re now a wrecking tool. We will definitely be

putting them to good use over the years.”


Port Susan Farmers Market

Stanwood, Washington

Port Susan Bay, about 50 miles north of Seattle, is known for

its rich soils and maritime climate. Large family farms have

thrived here for generations. And today, the number of small

farms is increasing to meet consumer demand for fresh,

locally-grown products.

“Creating a local

farmers market

in the Stanwood

Camano Island

community

is exciting

for our farm

businesses,” says

Tristan Klesick,

Northwest FCS

Local Advisor and

board member

of the new Port

Susan Food & Farming Center. “We have an active network

of local growers here who are engaged in direct marketing.

They have been actively promoting agriculture and building

networks for years. The farmers market gives us another

option to market our farm goods and helps us capture more

of the retail dollar.”

“We were so excited to receive the Northwest Farm Credit

grant when we did,” says Leslie Collings, Port Susan Farmers

Market Manager. “It’s always the simple details that make a

big event work. With the grant we purchased recycle bins,

garbage cans, tents, signage, tables and chairs. We also

bought a storage unit to pack everything in overnight. These

are things people normally wouldn’t think of, or provide

funding for, but they make a huge difference.”

Port Susan Farmers Market proudly opened for business in

August with 20 local farm vendors. Wide-spread, enthusiastic

support – from USDA, the City of Stanwood, numerous

community organizations, local farms and businesses – made

the project happen. During this first season the market drew

more than 6,000 attendees who came to shop, visit and learn

more about where their food comes from. With the positive

response, organizers are exploring an indoor holiday market

this winter to offer shelf-stable, locally made products.

“Movies In The Park”

Pendleton, Oregon

Pendleton’s “Movies in the Park” program brings the nostalgia

of drive-in movies to a beautiful park setting. Here, families

simply enjoy an evening together with friends and neighbors.

Movie night is free for everyone. Theme nights and fun,

youth activities – like the pineapple walk on Luau night

– are coordinated by the Pendleton Parks and Recreation

Department. Local businesses sponsor a night to help cover

costs. “Movies In The Park” has become so popular that

audiences range from 300 to 500 a night. Just imagine the

impact of losing a major corporate sponsor for a free family

event like this. That’s when the City of Pendleton turned to

Northwest FCS for help.

“The economy has

forced many private

businesses and

local governments

to cut budgets for

programs that have

good benefit for

rural communities,”

says Rick Guenther,

Northwest FCS

Pendleton Branch Manager-Credit. “I’ve been a long time

member of the City’s Parks and Recreation Commission, which

is an advisory board to the City Council. With this grant, the

parks department was able to purchase the outdoor movie

equipment needed to continue this very popular program.

And now the multi-purpose equipment is being used for

other community-related events.”

“Movies In The Park” brings families and neighbors together.

Here they also discover other low-cost opportunities to

Tristan Klesick, Northwest FCS Local Advisor, Audrey Gravley, Northwest FCS

Regional Vice President

Scott Searle, Northwest FCS Local Advisor, Randy Adams and Chief Mike Carter, Shelley Firth Fire Department,

Steve Smith, Northwest FCS Relationship Manager/Assistant Vice President


have fun and recreate. “In these tough times, affordable

entertainment for families is even more important,” explains

Deb Whittaker, Special Projects Coordinator at Pendleton

Parks and Rec. “That’s why we offer scholarship activities

that are income based. Our discounts can be between 50

and 90 percent and we subsidize the rest. Finding outside

funding is so important these days and it’s very competitive.

We have been very fortunate to have great partnerships, like

Northwest Farm Credit Services. As we do good work, people

really do recognize and want to jump on board to help.”

Melstone Football & Sports Field

Melstone, Montana

Students in Melstone, Montana dream of playing a home

football game someday. With 84 students K-12, they can

probably field their own six-man teams. But today, all junior-

and high-school games (and most practices) are played

at their cooperating school in Custer, Mont. more than

40 miles one way – on dirt and gravel road. The Melstone

School needs a safe, well-drained field to play and practice.

But, they also need about 5,000 yards of top soil plus all

the excavation work to move and level dirt. The students

of Melstone deserve our support. Families in this ranching

community have been hard hit the past two years – from

the “1,000 year flood” to drought-fueled wild fires.

When there’s a need, hard-working neighbors band

together. That’s one of the great things about living in a

small community. To raise money for the field, 7th and

Rural Community Grant

Deadlines:February 1st and October 1st

For more information, visit farm-credit.com or contact

Jennifer Rohrer at 1-800-743-2124 ext. 5303.

Email: [email protected]

Submit applications to:

Northwest Farm Credit Services

Attn: Jennifer Rohrer

PO Box 2515

Spokane, Washington 99220-2515

Fax: 800.255.1789


Family Business SuccessionPlanning SeminarJanuary 24-26, 2013 – Boise, Idaho

While many producers recognize the importance of ownership and management transition, few know where to start in developing comprehensive plans. The Family Business Succession Planning Seminar,

led by family business experts Dr. Don Jonovic and Rich Thornton, is designed to provide familieswith information and proven processes to help transition the ownership and management of their

businesses to the next generation.

Subjects Covered and Key Takeaways:

• Business and Family – Learn to recognize and balance individual, family and business needs.• Financial Implications – Understand the financial requirements and potential pitfalls surrounding succession• Business Assessment – Identify your family business strengths, challenges and philosophies• Communication – Review best practices in family communications• Flexible Solutions – Identify succession alternatives for varying family and business needs• Practical Approach – Explore proven, real-world steps in management succession and asset transition• Legal Issues – Learn the legal considerations and best practices for succession and estate plans• Buy/Sell Agreements – Identify options for funding and structuring buy/sell agreements• Road Map for Success – Develop practical next steps in building business succession plans• Expert Perspective – Meet and learn from Northwest FCS’ staff and experts in succession planning

• Networking – Cultivate relationships with other families addressing similar issues

Who Should Attend

All key family members impacted by management succession and asset transition should attend the entire session.

What Participants Say

“We now have a great start going into our transition. This was the push we needed to communicate, ask the right questions and make decisions.”

“This seminar has opened up dialogues and stimulated a lot of positive family communication. We can now all go forward with cooperation – not conflict or hesitation.”

Time: 2 p.m. Thursday (1/24/13) to 11 a.m. Saturday (1/26/13)

Participants: 50+

Seminar Fees: Individual participants $450 – Additional participants $350.

Attire: Business casualAll meals provided except dinner on Friday

Participants are responsible for lodging and travel expenses to Boise.

For registration and details visit: www.farm-credit.com/resources.

Questions? Email: [email protected] or call 866.552.9193

8th grade

students have

been collecting

recyclable

products for two

years. They also

receive private

donations.

Ranchers in the

area are offering

the dirt, but de-rocking and hauling some 2.5 miles just isn’t

cheap. Plus, a lot of the evacuation equipment is being used

to fight fires.

“We have people out spreading the word about our project

and it’s picking up momentum,” says Superintendent Kelly

Haaland. “The football and sports field is one of our school

board objectives. We were able to get water to the field with

help from the city. Mid-Rivers Telephone Cooperative has

loaned us their grant writer to help raise funds. The money

from Northwest Farm Credit Services helps keep the ball

rolling. With this support, we’re going to approach the oil

and coal industries in our area for additional funding. After

so many years, it will be nice to finally host a home game.” The mighty Melstone Cougars

Fundrasising for the new sports field


Business Management CenterEngaging Seminars

and Workshops

Seeking, interpreting and sharing knowledge about

the industries we serve is a core value of Northwest

FCS. We’re firmly committed to helping business

owners and their families to be successful long term.

That’s why we’ve invested in educational programs

and business facilitation to help you improve your

management skills and help transfer the leadership

and management of your business to the next

generation.

We have a strong history working with family

businesses in our Business Management Center.

Knowledgeable and experienced facilitators have

worked with hundreds of family operations and

boards of directors, helping them to improve

their management practices, communication and

strategic planning skills. Over the years customers

have provided tremendous feedback. They say these

educational programs and one-on-one facilitation

have made significant and lasting differences in their

businesses.

We hope you will take advantage of the BMC

programs offered in 2012-2013. The schedule changes

every year and we do our best to provide programs in

a variety of locations. During these sessions you will

gain insights to better manage your business. Plus,

you’ll have the opportunity to work with some of the

most successful producers we have the privilege of

working with every day.


2012-2013 BMC Calendar

Financial Workshops

Level I Level II

Financial Statements Financial Analysis Location

November 28, 2012 November 29, 2012 Twin Falls, Idaho

December 12, 2012 December 13, 2012 Klamath Falls, Oregon

January 8, 2013 January 9, 2013 Benton City, Washington

Level III Level IV

Growth and Capital Profits, Cash and Risk Location

November 28, 2012 November 29, 2012 Salem, Oregon

December 5, 2012 December 6, 2012 Twin Falls, Idaho

December 12, 2012 December 13, 2012 Benton City, Washington

January 8, 2013 January 9, 2013 Bozeman, Montana

Featured Programming Location

Advanced Management Seminar:

Taking your Business to the Next Level

January 22-23, 2013 Spokane, Washington

Family Business Succession Seminar

January 24-26, 2013 Boise, Idaho

Young and Beginning Producers Conference

February 12-14, 2013 Spokane, Washington

Executive Producers Summit:

Managing Growth and Business Evolution

February 13-15, 2013 Spokane, Washington

Financial Summit

May 7-9, 2013 Coeur d’Alene, Idaho

For registration and details visit: www.farm-credit.com/resources

Questions? Email: [email protected] or call 866.552.9193

Note: BMC financial workshops build on preceding workshops. However, there are no workshop prerequisites.

AwardingCollege ScholarshipsApplication

Deadline March 1st

Sons or daughters of current customers, or customers’ employees,

are eligible to receive a college scholarship from Northwest

FCS. Last year, Northwest FCS provided more than $80,000 in

scholarship support. Scholarships are awarded to students

throughout Idaho, Montana, Oregon, Washington, and Alaska.

High school students who plan to attend a higher education

institution within the next year are eligible for a $1,500 scholarship.

In addition, $1,500 scholarships per state are awarded to college

sophomores, juniors and seniors.

Scholarship winners will be selected based on scholastic

performance, leadership activities and a written essay.

Interested students need to submit an application by March 1.

Applications can be found at farm-credit.com or at any

Northwest FCS location. Winners are announced in May.

High school students: submit your application to your local

Northwest FCS office.

College students: mail your application to:

Northwest Farm Credit Services – Marketing Department,

P.O. Box 2515, Spokane, WA 99220-2515.

Recent Scholarship Winners

Deena Emry

Wilder, IdahoBeau Milton

Joliet, Mont.Amelia Fitch

Astoria, Ore.


“Learn, Earn and Return” was a wise maxim that really

caught my attention in graduate school. Since then,

working in the field of agriculture has given me numerous

opportunities to observe many great individual and

organizational stewards across the country.

One of the most rewarding aspects of my professional

career is working with Northwest Farm Credit Services and

other associations to deliver young farmer and rancher

programs. The reward is observing management, loan

officers, and staff feeding off of the energy of young,

diverse producers who will carry the torch for the next

generation of agriculture.

Learn, Earn and Return also comes to mind when I think

about successful, experienced farmers and ranchers.

Without fanfare, these individuals over the years have

acted as volunteer mentors to young farmers and

ranchers. They guide them in production, operation,

financial, and risk management decisions, which has

positioned these young people to be more competitive

and enabled them to feed the people of the world. These

mentors are an invisible hand for those truly seeking to

better themselves.

Over the years, one producer has sponsored five young

FFA students to attend one of my seminars annually.

They earn the trip through his grilling them about

the day’s events on the drive home. In return for his

sponsorship, the students each compose a one-page

summary of what they learned. Years later, these young

people are very successful producers, lenders, teachers,

and agribusiness people.

Many producers, as my folks did, have hosted young

people from urban areas and international youth to

experience agriculture and rural areas. This is a genuine

opportunity to learn about other cultures and regions and

their stories, and to earn these young people’s trust. When

they return home, the bond will be a lasting one. There

is an old saying that “people do not care how much you

know until you show them how much you care.”

Each of us has to make it a personal mission to be effective

stewards of our resources. To step outside of our own little

“bubble” to look for ways to “return” what we have been

given. Learn, Earn and Return stewardship is analogous to

throwing a stone in a pond. The initial splash sends out

ripples that seemingly go on forever.

Learn, Earn, and ReturnDr. David Kohl

Professor Emeritus, Virginia Tech


Gain knowledge from agricultural professionals who have worked with hundreds of operators just like you. Benefit from the collective knowledge of experts in your specific industry. And, now you can easily access this information via a new electronic newsletter, courtesy of Northwest FCS.

Northwest FCS’ Knowledge Center provides a quarterly e-newsletter with the latest updates of industry specific information, gathered and interpreted by our front-line Knowledge Team staff.

Sign up for our e-newsletter to receive special articles on agricultural issues, the general economy and quarterly industry updates with the latest Market Snapshots- information on key commodities including: cattle, dairy, forest products, hay, nursery/greenhouse, row crops, small grains, ethanol, tree fruit, wine/vineyard, corn, soybeans, and processor/manufacturer.

Plus, registering gets you access to Northwest FCS Resources onfarm-credit.com where you can learn about our Business Management Center workshops and seminars and read up on Industry Perspectives, economic indicators and articles from leading agricultural sources across the country.

To receive the Knowledge Center e-newsletter and access

Northwest FCS Resources, visit

farm-credit.com/resourcesor call 800.743.2125 ext. 5428

Get TheMarket Scoop!


Member Stock Program ChangesThe Northwest FCS Board has approved a change to the member stock program where you will

no longer be required to pay interest on the stock or participation certificates you purchased in

the cooperative.

On November 19, your stock obligation was removed from the principal balance of your loan

and an interest-free obligation to Northwest FCS of like amount was created. Your rights and

obligations as a stockholder do not change.

Since our association is well capitalized, Northwest FCS does not envision requiring payment

of this obligation, provided an adequate capital position is maintained. Please contact your

Northwest FCS representative should you have questions.

New Website and Online Banking Upgrade @ northwestfcs.comNorthwest FCS is launching a new website in December with a fresh, modern look and a new

name, northwestfcs.com. This new url website address was chosen to better align with the

Association’s brand image and messaging.

The Northwest FCS online banking system is also getting a new look with a brighter, more

intuitive customer experience while maintaining the same functionality.

Once the transition to the new website and new web address is complete, the old web address,

farm-credit.com, will begin linking to the new site. Both site addresses will direct users to the

new site. We’ll keep farm-credit.com active for the next couple of years.

Look for our new website and online banking upgrades coming this December.

IDAHORobert Ball HamerCody Bingham JeromeJeff Blanksma, Jr. HammettAdrian Boer JeromeRay Carlson BlackfootBill Clayton WilderCade Crapo St. AnthonyRon Elkin BuhlCarl Ellsworth LeadoreDavid Funk HansenLeRoy Funk BurleyBrent Griffin RupertJohn Hepton NampaJackie Hillman DuboisBrian Huettig HazeltonKen Koompin American FallsKaren Lustig CottonwoodMarty Lux NezperceDan Mader GeneseeRay Matsuura BlackfootKyle Meyer RathdrumRon Mio FruitlandGreg Moss KetchumKirk Nickerson HoweJeff Pahl PocatelloLisa Patterson HeyburnErick Peterson MoscowDavid Rallison FranklinD. Brad Reed Idaho FallsNate Riggers Nez PerceDoug Ruff AberdeenRoyce Schwenkfelder CambridgeKirt Schwieder Idaho FallsScott Searle ShelleyTodd Simmons TerretonRobert Swainston PrestonRyan Telford RichfieldBernie Teunissen CaldwellDale Thomas GoodingCamellia Thurgood NampaJustin Tindall BruneauSteven Toone GraceJames Udy American FallsTodd Webb DecloShawn Webster RexburgBerkley Wray BlackfootRandy Wheatley McCammon

73 Fort Hall Avenue, Suite AAmerican Falls, Idaho 83211(208) 226-1340

370 North Meridian Street, Suite ABlackfoot, Idaho 83221(208) 782-3800

1408 Pomerelle Avenue, Suite BBurley, Idaho 83318(208) 678-6650

501 King StreetCottonwood, Idaho 83522(208) 962-2280

2225 West Broadway, Suite AIdaho Falls, Idaho 83402(208) 552-2300

2631 Nez Perce Drive, Suite 201Lewiston, Idaho 83501(208) 799-4800

16034 Equine DriveNampa, Idaho 83687(208) 468-1600

102 North State, Suite 2Preston, Idaho 83263(208) 852-2145

1036 Erikson DriveRexburg, Idaho 83440(208) 656-2100

815 North College RoadTwin Falls, Idaho 83301(208) 732-1000

MONTANABill Bergin MelstoneAdam Billmayer HogelandBart Bitz Big SandyKeven Bradley Cut BankSandy Carey BoulderTom Cheetham RedstoneDon Connelly ValierBret Conover BroadviewCalvin Danreuther LomaCory Davis TownsendNels DeBruycker ChoteauVicki Eggebrecht MaltaConni French MaltaJoe Fretheim ShelbyBeth Granger Great FallsChad Hansen DillonCraig Henke ChesterCourtney Herzog RapeljeDale Hirsch KinseyCraig Iverson WinnettTim Johnson DuttonAlan Klempel BloomfieldPaul Kronebusch ConradTim Lake PolsonBill Lauckner, Jr. NashuaKirk Montgomery RosebudBryan Mussard DillonCorie Mydland JolietTraci Mytty FlorenceTracey Pearce SheridanShawn Rettig RudyardRandy Ridgeway StanfordDave Sattoriva HinghamNancy Schlepp RinglingDennis Schmierer SavageLeonard Schock VidaAmy Sinks JordanKim Skinner HallCarmie Steffes PlevnaSteve Swank ChinookDuane Talcott HammondDale Tarum RichlandBob Taylor DentonMiles Torske HardinCarl Traeholt Wolf PointBrian Tutvedt KalispellLarry Tveit, Jr. FairviewBruce Udelhoven WinifredJeff Volf Judith GapMike Wallewein ConradSteve Wood Sheridan

Tech Plaza, Building 1, Suite 3003490 Gabel RoadBillings, Montana 59108(406) 651-1670

1001 West OakFarm Credit Building, Suite 200Bozeman, Montana 59772(406) 556-7300

519 South MainConrad, Montana 59425(406) 278-4600

134 East Reeder StreetDillon, Montana 59725(406) 683-1200

501 First Avenue SouthGlasgow, Montana 59230(406) 228-3900

700 River Drive SouthGreat Falls, Montana 59405(406) 268-2200

1705 Highway 2 Northwest, Suite AHavre, Montana 59501(406) 265-7878

120 Wunderlin Street, Suite 6Lewistown, Montana 59457(406) 538-7737

502 South HaynesMiles City, Montana 59301(406) 233-3100

3021 Palmer Street, Suite BMissoula, Montana 59808(406) 532-4900

123 North Central AvenueSidney, Montana 59270(406) 433-3920

OREGONMonet Allen Montague, CADwight Arnoldus CoveEd Bair Klamath FallsLori Baley MalinTim Bare RoseburgGlenn Barrett BonanzaJohn Boyer HainesGreg Brink JosephRon Brown Milton-FreewaterWarren Chamberlain ValeDan Dawson RoseburgMike DeWall HarrisburgSusan Doverspike BurnsRod Fessler MadrasJoe Finegan CorneliusSkip Gray AlbanyDennis Harmon Grants PassRon Hjort OaklandGary Hull LebanonMatt Insko LaGrandeKen Jensen ValeAlan Keudell AumsvilleMark Krautmann SalemDavid Kunkel PortlandLeland Lage Hood RiverDan C. Lewis GastonSharon Livingston Mt. VernonBill Martin RufusScott McClaran JosephRon Meyer TalentGreg Myers TillamookDavid Neal TangentMary Olson MonmouthLarry Parker HelixAlan Parks Silver LakeAmy Doerfler Phelan AumsvilleVikki Price NyssaJohn Reerslev Junction CityStephen Roth BrothersSteven Sugg The DallesAnna Sullivan HerefordSteve Walker StanfieldCharlie Waterman Bandon

3370 10th Street, Suite BBaker City, Oregon 97814(541) 524-2920

2345 N.W. Amberbrook Drive, Suite 100Beaverton, Oregon 97006(503) 844-7920

650 E. Pine, Suite 106ACentral Point, Oregon 97502(541) 665-6100

2911 Tennyson Avenue, Suite 301Eugene, Oregon 97408(541) 685-6140

300 Klamath Avenue, Suite 200Klamath Falls, Oregon 97601(541) 850-7500

378 West Idaho AvenueOntario, Oregon 97914(541) 823-2660

12 Southwest NyePendleton, Oregon 97801(541) 278-3300

3113 S. Highway 97, Suite 100Redmond, Oregon 97756(541) 504-3500

2222 Northwest Kline StreetRoseburg, Oregon 97471(541) 464-6700

650 Hawthorne Ave. S.E., Suite 210Salem, Oregon 97301(503) 373-3000

3591 Klindt Drive, Suite 110The Dalles, Oregon 97058(541) 298-3400

WASHINGTONDave Allan WapatoMelissa Bedlington-Kleindel LyndenJeff Bosma OutlookRuss Byerley TouchetRoger Canfield OlympiaMike Cobb EphrataBill denHoed GrandviewRichard DeRuwe DaytonFrank DeVries LyndenScott Eschbach YakimaPatrick Escure QuincyKevin Filbrun PascoStacy Gilmore PascoNorm Gutzwiler MalagaLori Hayles PascoGary Kehl QuincyJim Kile St. JohnCris Kincaid PullmanJim Klaustermeyer OthelloDave Klaveano PomeroyTristan Klesick StanwoodChris Kontos Walla WallaSteve Krupke ReardanJosh Lawrence Royal CityPoppie Mantone BingenSarah McClure Walla WallaDan McKay AlmiraAlan Mesman Mt. VernonJohn Miller ToledoPat Murphy ChehalisChuck Podlich OrondoJeff Raap EllensburgSara Rolfs WenatcheeJeff Schilter OlympiaDanielle Scrupps RitzvilleBen Smith SequimJerry Smith Benton CityMark Tudor GrandviewJake Wardenaar Royal CityAndy Werkhoven MonroeBrandy Wigen Colfax

265 East George Hopper RoadBurlington, Washington 98233(360) 707-2353

629 South Market BoulevardChehalis, Washington 98532(360) 767-1100

224 North MainColfax, Washington 99111(509) 397-2840

1501 East Yonezawa BoulevardMoses Lake, Washington 98837(509) 764-2700

9530 Bedford StreetPasco, Washington 99301(509) 542-3720

1900 W. Nickerson Street, Suite 215Seattle, Washington 98119(206) 691-2000

1515 S. Technology Blvd., Suite BSpokane, Washington 99224(509) 340-5600

2735 Allen RoadSunnyside, Washington 98944(509) 836-3080

1 West PineWalla Walla, Washington 99362(509) 525-2400

667 Grant Road, Suite 1East Wenatchee, Washington 98802(509) 665-2160

1360 North 16th AvenueYakima, Washington 98902(509) 225-3200

advisors and locations HeadquartersP.O. Box 2515, 1700 S. Assembly St.Spokane, Washington 99220-2515509.340.5300 | farm-credit.com

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P.O. Box 2515Spokane, Washington 99220-2515

New address?Please notify your local Northwest FCS office.

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Northwest FCS Yields - Giving Back - Fall 2012

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