Third Quarter 2012 CREDIT Highlights

Ag
CREDIT
Third Quarter 2012
Highlights
Ag Credit’s New Director ...................6, 7, 8
Fishing on Kentucky Farms ...........9, 10, 11
Drought Information ............................... 13
www.AgCreditOnline.com
Central Kentucky Ag Credit Offices
Danville Office
Lexington Office
Richmond Office
P.O. Box 326
485 North Danville Bypass
Danville, KY 40422
859-236-6570 • 1-800-589-4261
P.O. Box 1290
640 South Broadway
Lexington, KY 40508
859-252-4717 • 1-888-820-3270
P.O. Box 492
1000 Ival James Blvd.
Richmond, KY 40475
859-623-1624 • 1-888-820-3221
Dale T. Cinnamon
Shane Turner
Asst. Vice President
Relationship Manager
Vice President - Credit
Charles H. (Chuck) Canter
Joe Goggin
Loan Officer
Senior Loan Officer
Lisa Yeager
Kim Elliott
Loan Officer
Loan Specialist
Linda Haley
Tina Roney
Loan Specialist
Loan Assistant
Chris Cooper
Senior Loan Officer
Diana McDowell
Country Mortgage Loan Originator
Teresa Thomas
Loan Officer
Karen Sarver
Loan Assistant
Stanford Office
Katie Banks
Paris Office
Country Mortgage Loan Originator
P.O. Box 249
201 Commerce Drive
Paris, KY 40361
859-987-4344 • 1-800-613-4292
Lebanon Office
P.O. Box 544
842 West Main Street
Lebanon, KY 40033
270-692-4411 • 1-800-264-0402
Harry Young
P.O. Box 367
106 Agriculture Way
Stanford, KY 40484
606-365-7500 • 1-800-467-0039
John Peek
Russell Gray
Senior Loan Officer
Asst. Vice President
Relationship Manager
SaraVard Von Gruenigen
Willie Wilson
Felicia Madden
Vice President - Credit
Loan Officer
Richard Medley
Margie Roe
Senior Loan Officer
Loan Assistant
Justin Craig
Loan Officer
Loan Specialist
Pamela Johnston
Loan Assistant
Loan Officer
Brad Godbey
Regional Lending Managers
Loan Officer
1-888-820-3270
Jeanine Williams
Shane Turner
Loan Assistant
Vice President - Credit
Susan W. Mattingly
Harry Young
Loan Assistant
Vice President - Credit
Appraisal Services
Bud Burdette
Appraiser
Credit Service
Paul Wyler
Asst. Vice President – Principal Loan Analyst
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2 / Third Quarter 2012, Ag Credit Leader
www.AgCreditOnline.com
Who Can Borrow
From Ag Credit ?
T
by Robert Anderson
he current unstable economy has
caused many lenders to back away
from making loans in rural areas.
There are unique considerations that
accompany living and working in rural areas.
That’s where a specialized lender like Central
Kentucky Ag Credit fits. Ag Credit professionals
understand the financial considerations that make
living and working in rural areas successful.
Selecting your lender in a rural area is a
decision that ranks as highly as the property or
rural home you choose, the livestock you raise, or
the equipment you purchase.
Three key factors mark Ag Credit’s credibility
as a rural lender:
• Ag Credit’s staff are highly qualified.
• Ag Credit has been a lender for 78 years.
• Ag Credit is financially sound.
Country Mortgages
Ag Credit lends money for the purchase,
refinancing, construction and improvement of
single family dwellings located in the country.
Loans can also be made for the purchase and
refinancing of unimproved residential lots.
Long-Term Loans
Ag Credit is one of the only lenders who will
make long-term loans at fixed interest rates. Other
long-term loan types are also available.
Part-Time Farmers
For individuals who own agricultural land
or who produces agricultural products – but the
agricultural operation is not the primary source of
income – Ag Credit can lend for most agricultural
and family needs.
Full-Time Farmers
For individuals whose primary business is the
production of agricultural products, Ag Credit can
finance virtually all agricultural, non-agricultural,
and family needs.
Young, Beginning and Small Farmers
Ag Credit understands young farmer low
equity challenges, and can work closely with
borrowers to solve the problem. Ag Credit is a
Preferred Lender with the Farm Service Agency, a
benefit to young, beginning and small farmers.
www.AgCreditOnline.com
R
Russell Gray Protects Family
Tradition
ussell Gray, Ag Credit’s Assistant Vice President/Relationship Manager, has
made a significant decision to preserve his family’s farm ownership tradition.
He is shown in the photo standing in a large hay field on his property in
Harrison County. Russell’s Ag Credit office is located in Paris.
His farm consists of 85-acres in Harrison County and is known as Gray’s Run
Farm. It has been owned by various family members for the past 215 years (Wow!
That dates back to 1797.)
Russell’s devotion to both farming and family are evident, since he has taken
steps to make sure that Gray’s Run Farm will remain intact as a farm unit.The
Bluegrass Conservancy has announced that Gray’s Run Farm is the first farm located
in Harrison County.
Russell confirms that his agreement with the Bluegrass Conservancy assures
that the 85-acre farm will be a permanent easement and will never be subdivided. He
continues to own the property, knowing that his action will be a great legacy for
future generations.
The most recent newsletter published by the Bluegrass Conservancy reports that
Gray’s Run Farm creates a critical mass of protected land, because it is contiguous
to Griffith Woods, a 745-acre property that is owned and managed by the Kentucky
Department of Fish and Wildlife Resources, conserved by The Nature Conservancy,
and containing one of Kentucky’s oldest old-growth savannas. v
Third Quarter 2012, Ag Credit Leader / 3
Ag Credit Takes Music History
to Communities
The LEADER is published quarterly for
stockholders, directors, business associates
and friends of the Central Kentucky Ag Credit
Association.
President & CEO
James W. Caldwell
M
“
usic on Your Front Porch” is being launched
by Central Kentucky Ag Credit and is available
to civic, religious, and agricultural groups
throughout the association’s 17-county service
area. The entertaining program features the development
of roots music in America, and highlight’s Kentucky’s role
in the historical significance of family-rooted music.
Michael Johnathon, founder and host of the
WoodSongs Old Time Radio Hour, will be the star program
presenter. He will be accompanied by one of Ag Credit’s
administrative hosts, including Jim Caldwell, President and
CEO; or Jim May, Director on Ag Credit’s Board; or Robert
Anderson, Vice President Information Services.
Each program will contain music history, fun facts,
and live music by Michael Johnathon, who is a nationallyknown folk singer. Ag Credit officials will be moderators at
each session.
Caldwell
Editor
Robert Anderson
May
“Music on Your Front Porch” will last about an hour
and adds entertainment to programs that are available to
groups throughout central Kentucky. A minimum of 50+
people are preferred at each program. When an individual
group cannot meet that requirement, it is suggested
that community groups work together to arrange a joint
program session.
Ag Credit has handbills available free-of-charge that
can be distributed by groups to invite attendees and
promote the event. Programs (not the meeting place,
meals or snacks) will be provided free by Ag Credit,
including Michael Johnathon’s appearance, a professional
sound system, and other program materials.
Groups who want to schedule the program for
presentation should call 502-931-2000 (Claude L. Brock); or
call 1-800-589-7859 (Robert Anderson); or email cbrock@
iglou.com; or email randerson@AgCreditOnline.com; or call
Toni Melton at 859-255-5700. v
Board of Directors
Alvin Lyons
Chairman
Steve Downs
Vice Chairman
James L. May
Jerry Rankin
James C. Rankin, III
David C. Sparrow
Lionel Williamson
Anderson
Address Changes
Address changes, questions, comments and requests to
cancel your free subscription to the Ag Credit Leader
should be sent to Central Kentucky Agricultural Credit
Association by calling 1-859-253-3249, or by mailing to
P.O. Box 1290, Lexington, KY 40588-1290.
Financial Information
The Farm Credit Administration does not require the
association to distribute its quarterly financial reports to
stockholders. Copies of its complete report are available
on request. To access financial statements on line, go to
the association’s web page at www.AgCreditOnline.
com and select the annual report link. Contact Marcus
Barnett, chief financial officer, by writing to Central
Kentucky Agricultural Credit Association, P.O. Box 1290,
Lexington, KY 40588
The shareholders’ investments in the association are
materially affected by the financial condition and
results of operations of AgFirst Farm Credit Bank and
copies of its quarterly financial report are available by
writing Patti Trotter, AgFirst Farm Credit Bank, P.O. Box
1499, Columbia, SC 29202-1499.
Johnathon
Privacy Policy
Your online privacy is always a top concern at Ag
Credit. For a complete copy of the latest version of the
online privacy policy, please visit our web site and click
on the homepage link. Review our Privacy Policy
Holiday Closings
Labor Day
Monday – September 3
Columbus Day
Monday – October 8
Veteran’s Day
Monday – November 12
4 / Third Quarter 2012, Ag Credit Leader
Central
Kentucky
AgCredit
www.AgCreditOnline.com
Traits of a Winning Producer-Lender Team
D
By Dr. David M. Kohl
provide educational opportunities for
producers by sponsoring seminars with
experts in the fields of production,
financial, legal, and risk management, as
well as other pertinent topics. On the
other side, lenders - even experienced
ones - will say that certain producers
have been invaluable in keeping
them current on the latest changes
and trends in the industry. I find that
some of the greatest gratifications and
rewards emerge from sessions such
as Ag Leadership Institutes and Ag Biz
Planner sessions, by watching lenders
and producers work side-by side in a
learning environment as they develop
business plans, conduct analysis of the
business or personal financial situation,
and assess different communication
styles.
uring years of working with
producers and ag lenders
I have observed a wide range of
producer-lender relationships. A group
recently asked me if I could discuss
effective traits of a winning producerlender team. I have had numerous ag
lenders state that the most enjoyable
part of their job is working with
producers and watching their business,
family and personal goals being met.
On the other side, producers have told
me that, without their lender being
there in good times and challenging
times, they would not be where they
are today.
Whether it is a young farmer
starting from scratch, a growing or
expanding business, a business in
transition, or a business that is scaling
down or exiting, the team approach
between borrower and lender is a vital
element for success. Let’s examine
attributes of a “cut above” producerlender team.
Both the borrower and lender
bear the responsibility to assure sound
use of agricultural credit. One trait of
a winning team is that the individual
seeking credit must approach the
lender prepared to demonstrate that
the proposed financing is feasible and
consistent with business, family, and
personal goals. This usually requires
some semblance of a written business
plan and a reasonably well-thought-out
proposed financial plan. For an existing
business, accurate past financial and
production performance records may
be necessary to provide a baseline for
expectations. The lender, on the other
hand, needs to complete an analysis of
financial and business information in
order to present an informed, timely,
customized financial package to the
producer. The lender can provide the
value-added service of financial and
management benchmarking to internal
or external databases. This gives a
producer a sense of the financial health
www.AgCreditOnline.com
Dr. David M. Kohl President
AgriVisions, LLC
of their operation, allows them to see
how they stack up to peers, and shows
how they can improve performance.
Another trait of an effective team
relationship is that the lender is not a
“yes or no” lender, but a “what if” lender.
A key attribute of the lender is being
a good listener, understanding goals
and motivation of the borrower, and
asking the tough “but what if” questions
to find the strengths and the blind
spots of the business. The lender can
provide options and alternatives, but
not specific advice or actions because
of legal limitations. On the other side,
the borrower must follow through using
the HUT principle, i.e., hear what is
being said, understand how it impacts
their situation, and, most importantly,
take action, monitor results, and be
accountable for decisions. The producer
must select the option best suited for
their situation in a negotiated action.
The final attribute of a successful
team is open communications.
Borrowers and lenders do not like
surprises. From a borrower’s standpoint,
do not inform your lender of a major
decision after the fact. Allow your
lender time to analyze your requests,
inform them about changes or problems,
and be honest and straight-forward
all the time. Inaccurate information
and failure to honor commitments
jeopardizes the producer-lender
relationship. On the other hand, a
lender should have a reputation of
honesty, should maintain confidentiality
of information, and objectively evaluate
situations.
In today’s volatile, uncertain global
environment, the cooperative spirit and
bond is vital for success. A collaborative
effort between the lender (with a role
as a teacher, coach, and facilitator),
and the producer (who implements a
business game plan), can make dreams
come true. v
Another trait of an effective
winning team is a “two-way street”
learning environment. Many associations
Third Quarter 2012, Ag Credit Leader / 5
An Introduction
Jim Rankin is Central Kentucky
Ag Credit’s newest director. He was elected by
the membership to serve on the Ag Credit Board
of Directors during March, and replaced retiring
director Oscar Penn.
Jim is a Bourbon County native. He and his
wife, the former Elizabeth Berry, also a Bourbon
County native, live on 115 acres in Bourbon
County, a short distance from the Fayette County
line. They also own 40 acres in Rowan County
in partnership with their sons, and use the land to
produce soybeans. Jim rents another 125 acres in
Bourbon County that he uses for alfalfa production.
The couple are parents of two grown sons, Jay and
John. While Jay farms independently, John farms
with his dad. Both boys are graduates of Morehead
State University.
Both Jim and Elizabeth set the tone for
education in their household by achieving their
educations at the University of Kentucky. Jim
earned his B.S. Degree in Production Agriculture,
and Elizabeth earned a B.S. Degree in Ag
Economics. That educational combination has been
a benefit in their marriage and farming partnership.
Current residents on the Jim Rankin farm
include Jim, Elizabeth, several Thoroughbreds,
cattle, lots of fish in the pond, and two dogs, Bonnie
and Clyde.
Claude L. Brock, Writer
Photography by Robert Anderson
J
im Rankin is a creative guy. His
farming career has featured
planning and hard work,
eventually leading to land ownership,
and a lifestyle that he and Elizabeth
treasure and enjoy. It is safe to say that
Jim worked for what he has achieved –
there were no silver spoons on his plate.
The primary enterprise on the
Rankin farm in Bourbon County is
Thoroughbred boarding and Jim boards
about 30 outside mares during season,
and has up to 14 mares and offspring
on the farm all the time, which he
boards, trains, and races, whichever
6 / Third Quarter 2012, Ag Credit Leader
Jim Rankin Followed The Call
the case may be. He also maintains
his own racing stable, and has a cattle
backgrounding operation, consisting
of 50-60 cows, plus his on-farm bulls.
Those activities, combined with
production of beans and hay, rounds
out Jim’s farming operation.
Bourbon County native
But, that’s not all Jim does. He
finds time to do creative things, such
as building his house, moving a barn,
mission work, fencing the entire home
place, helping the boys build a diving
pontoon in the pond, and anything else
that strikes his fancy. Indeed, a lot of
things strike Jim’s fancy!
He keeps his racing Thoroughbreds
busy (and always travels with them) at
tracks in Kentucky, Indiana, Ohio, West
Virginia, and Michigan. Altogether, Jim
estimates his Throughbreds will race
40-50 times each year.
And, there is Jim’s humanitarian
service. Jim’s personal passion lies in
service to mankind on mission trips,
where he takes joy in working with
young people. He has labored for the
Lord on mission trips to Honduras,
Mexico, and in Eastern Kentucky. His
simple description of his mission work
is that “it is very rewarding”. When he
is in the mission field, Jim is usually
the Spanish interpreter, because he
learned to speak fluent Spanish when
he supervised migrant workers in the
tobacco fields of central Kentucky. The
philosophy that Jim discusses regarding
his mission work is, at the very least,
inspiring.
His philosophy is reflected in a
quotation that is framed with the photo
of a child and on display in his home (a
gift from a friend following a mission
trip to Mexico): “A hundred years from
now it will not matter what my bank
account was, the sort of house I lived
in, or the kind of car I drove … but the
world may be different because I was
important in the life of a child.”
Jim Rankin is a fellow who enjoys
his farm and his occupation. A lifetime
of creative work has led to his current
lifestyle, which includes horses, family,
farming, and mission work. Part
of his hard work can be seen in the
background. The barn was moved to
his farm from a location about 1-1/2
miles away. The 40’ x 144’ tobacco barn
was completely dismantled, moved,
reconstructed, then expanded to
contain stalls for Thoroughbreds.
Both Jim and Elizabeth quickly
added that the most important thing
they have done in their 30-year marriage
has been to successfully raise their sons,
Jay and John. “The boys have not been
a day of trouble – they have always
www.AgCreditOnline.com
To Farming; He is Ag Credit’s New Director
combines creativity, hard work, and strong principles
worked hard – we’re blessed,” said Jim
and Elizabeth.
The Tobacco Days
Jim recalls that it has always been
hard for him to make a decision to
borrow money.“I could always come
up with reasons not to borrow money,”
he said. However, like everyone, there
were times when Jim needed financial
support.The first time was when he
and his dad, Bud Rankin (who still lives
in Bourbon County at the age of 77),
needed money to buy cows. While they
have always had a good relationship
with their commercial banker, they
turned to Central Kentucky Ag Credit to
borrow, because the farm lender knew
exactly what they needed and Ag Credit
was quick to help.
Jim knows all about hard work, too.
Until the tobacco program changed,
Jim was a major Burley producer. His
average annual production was always
somewhere between 100 and 150 acres.
The biggest Burley production year he
ever had was 185 acres. When discussing
the tobacco days, Jim credits the “king
of cash crops” with boosting his ability
to succeed in farming, because the
cash flow was good. When the tobacco
support program disappeared, Jim
found it necessary to reconsider his
farming plan. That’s when he converted
to his farm’s present operations.
When Jim quit raising tobacco, he
and Elizabeth said they had more time
on their hands, since Burley production
is labor intensive, and that was behind
them. So they built a house.
Elizabeth picked the location for
their current home.The story goes that
she chose the highest spot on the farm,
and then sat down on it, facing in the
direction that she wanted the front door
to face. So, the site that was once an offroad tobacco patch is now the location
of the Rankin home. It is located on the
precise spot that Elizabeth picked.
Then the duo went to work without
any building plans.They made it up
as they went. Jim dug the hole for the
foundation. They supervised laying the
foundation. They supervised building
of the super structure. Then they did
all the rest themselves. The home is
beautiful, highlighted throughout with
Continued on page 8
“A hundred years from
now it will not matter what
my bank account was, the
sort of house I lived in, or
the kind of car I drove …
but the world may be different because I was important in the life of a child.”
Quotation
Gift to Jim from a Friend
However, as this story was being
written, the dry season in central
Kentucky was at its peak, reminding
Jim of a past hard time. “The drought of
1983 almost broke us’” he said.That was
another time when financial support
from Ag Credit was important.
He continues to be a member of
Central Kentucky Ag Credit. His Loan
Officers are Russell Gray and Willie
Wilson at the Paris Ag Credit office.
www.AgCreditOnline.com
The interior of the Rankin home reflects the
traditional values and imagination of Jim and
Elizabeth. They built the home and decorated
the interior, which features wood floors, wooden
walls and ceilings, and furnishings that
perfectly compliment the home’s interior. This
photo of the living area shows the expansive
room’s capability to accommodate big family
gatherings, while making daily living a pleasure.
Jim and Elizabeth Rankin have worked hand-in-hand to raise the family
and to make farming their lifestyle. They worked and planned to build the house
they live in. Elizabeth picked the location. Then armed with their hammers and
imaginations, they literally built the house together.
Third Quarter 2012, Ag Credit Leader / 7
“Rankin”
Continued from page 7
wood flooring, wooden walls, a fireplace,
and windows that offer panoramic
views. When you enter the home, it
reflects the personality of the owners.
Creative and beautiful.
As a farmer with a diverse
background, it’s hard to simply describe
Jim Rankin’s talents. Perhaps he can
be called a “maximizer”. He has always
practiced getting the most out of his
land, his crop production, his marriage,
his boys, his livestock, his home, his
mission work, and more.
Now that Jim Rankin is a member
of Ag Credit’s Board of Directors, it is
likely that he will contribute to help
Ag Credit maximize financial services
to member-borrowers throughout the
Bluegrass Region.
Jim Rankin observes while
a groom holds one of his racing
Thoroughbreds, “Wild Alex”, 5-yearold gelding, whose sire is Wild Zone
and whose dam is Sassy Alex. The day
before this photo was taken in midJuly, Wild Alex raced at River Downs
near Cincinnati, placing second. Wild
Alex is a $50,000 career earner.
The name of Jim Rankin’s farm is
“NIKNAR”. Do you know what that
means? Maybe it is a bird, a plane,
a horse, a ship, a wild animal, or
something else. Who knows? Search and
find the answer elsewhere in this edition
of the “Leader. v
8 / Third Quarter 2012, Ag Credit Leader
Angela Caporelli
Aquaculture Coordinator & Marketing Specialist
Office of Agriculture Marketing & Product Promotion
Kentucky Department of Agriculture
Angela Caporelli is a one-person army in the Kentucky Department of
Agriculture when it comes to coordinating and promoting Kentucky’s aquaculture
industry. She also works cooperatively with the 7-person Board of Directors of the
Kentucky Aquaculture Association. Her work takes place throughout Kentucky,
since Kentucky fish farming takes place all over the state, depending on species.
She is also the key liaison with experts at Kentucky State University, and she
teaches and lectures throughout the Commonwealth and the nation. Angela’s
credentials are impressive, including a B.S. Degree in Aquaculture & Fisheries from
the University of Rhode Island; former service with the Woods Hole National
Marine and Fishing Service at Cape Cod; research service aboard commercial
vessels off the Eastern Seaboard; and over 10 years of service with the Kentucky
Department of Agriculture. v
www.AgCreditOnline.com
Fishing on Kentucky Farms?
What’s That All About?
By Claude L. Brock
Photos courtesy of the Kentucky Department of Agriculture
F
ishing on farmland is something
that experts feel needs more
attention.That includes fishing
and fresh water shrimping on Kentucky
farms for profit, not just for sport.
Projections pertaining to America’s
population and the needs of its people
indicate that population in the United
States will double by the year 2050.
Already, the nation’s people are showing
high interest in eating healthier, they
want to pay less for food at the grocery
store; they don’t want anyone to
pollute the environment; and when the
population doubles, it can be assumed
that wishes of the people will also
double.
Many experts, like Angela Caporelli
of the Kentucky Department of
Agriculture, feel that aquaculture holds
answers for farm profit and for feeding a
growing national population.
Worldwide production of aquatic
products has already surpassed
production of cattle.The basic reason is
that fish have a better feed conversion
rate than livestock, aquatic products can
make it to consumer tables faster, and
many Asian countries can conveniently
produce and harvest aquatic products,
instead of livestock products. Another
www.AgCreditOnline.com
reason is that supervision of foreign
aquatic imports falls to the Food &
Drug Administration (FDA) whose
primary focus is on imported products.
American aquaculture is also supervised
by the U.S. Department of Agriculture,
whose primary focus is American
production, but not processing.
Processing falls under the FDA.
An example of the impact of
foreign imports on the domestic market
can be seen in the way that Basa,
Taliapia, and other Asian species of fish
have flooded the American consumer
market. Much foreign production
comes from Viet Nam and neighboring
countries and is not inspected for U.S.
prohibited substances.
It is necessary to observe that
American producers have challenges as
they consider aquaculture production as
a farming diversification. For instance,
about 38% of each fish harvested is lost
in processing.That means the loss must
be converted into fish meal or another
by- product that is usable. Yet domestic
fish processing plants in America are few
and far between, and nearly non-existent
in many states, including Kentucky. An
added fact is that rising corn and bean
prices have caused farmers to turn
their heads away from fish and shrimp
farming due to feed cost. In addition,
land is abundant, but water for aquatic
production is not always available
in abundance, especially on central
Kentucky’s farms. Moreover, Kentucky
farming has remained traditional, with
aquaculture requiring new education,
more ponds, more investment in
equipping ponds, processing plants to
make wastage profitable, and a ready
market for fish and shrimp.
Like any product, price is a
big factor in aquaculture. A quick
comparison between American fish
products and Asian fish products shows
that domestic fish sells for an average
of about $14 lb. at retail due to U.S.
environmental cost in production, while
Asian products sell for about $4 lb.
Ouch!
Continued on page 10
Third Quarter 2012, Ag Credit Leader /9
Fishing on Kentucky Farms
Continued from page 9
any aquaculture conference, anywhere
in the world, and everyone knows about
the research being done at Kentucky
State University,” Angela says.
The University operates a mobile
processing facility that caters to
producers of seafood, poultry, and
rabbits in Kentucky. Research leaders
at KSU who are known and respected
worldwide, including Dr. Jim Tidwell,
Director of ARC, and Shawn Coyle,
specialists in shrimp and bass; Dr.
Steve Mims, a specialist in Paddlefish;
and Dr. Carl Webster, a leader in fish
nutrition. Caporelli also says the
Kentucky Department of Fish and
Wildlife Resources is proactive in
aquaculture, especially as it pertains to
the Commonwealth’s rivers and streams,
and to the Paddlefish species, which is
valuable for caviar.
It will be necessary to close the
consumer price gap substantially
by improving aquaculture farming
methods, constructing processing
plants, improving retail techniques, and
getting a grip on FDA’s promotion of
foreign imports.
There is Hope
While it seems that American
aquaculture is behind the times, that
is not entirely true. There is hope for
future production.
American consumers believe
that shrimp, for instance, comes
entirely from the domestic seaboard
states. That is not true. About 90% of
shrimp consumed in the United States
is farm-raised overseas. A few such
operations are located in Kentucky, the
nearest being in Oldham County, near
Ballardsville, about 50 miles from central
Kentucky. Catfish production is big in
Western Kentucky, and a few scattered
farm operations in the Commonwealth
also produce hybrid stripped bass and
large mouth bass. Those producers have
generally been welcomed by retail chain
stores and restaurants, since consumers
10 / Third Quarter 2012, Ag Credit Leader
are ever-insistent on quality products.
Shrimp and fish that are produced on
regional farming operations bring with
them an assurance that the product is
fresh, tasty, and that quality feed and
care has been practiced in production.
According to Angela Caporelli,
Kentucky producers have enjoyed
a good experience in shipping
aquaculture products to Canada to
fulfill a need among Asian residents. At
present, perhaps the largest obstacle
to farmers in Kentucky is the absence
of a fish food processing plant. While
there is rumor that such a facility is
being considered in central Kentucky,
high protein feed for use by Kentucky
producers is largely purchased out of
Utah for about $1,000 - $1,200 per
ton. If processed feed is made available
closer to home cost will be less, thus
an incentive for local production.
Reasonable feed prices and good
markets for consumption are key
factors that entice producers to enter
aquaculture activity.
Ms. Caporelli says Kentucky State
University (KSU) ranks among the top
five educational institutions in the world
in aquaculture research. “You can go to
National Precedents
Underway
Leadership to encourage
aquaculture is also emerging in several
states. Restaurant rewards programs
started in Kentucky, and have now
appeared in Alaska, Hawaii, and
Wisconsin. Such programs reward
food establishments for serving homegrown products, which results in more
business for producers.
The learning curve to enter
aquaculture may not be as steep as
some may fear. Farmers have already
learned the value of aquaponics, i.e.
production of Burley tobacco plants in
water, rather than in tilled beds.That
success has been proven in the Burley
belt and the practice has spread to some
vegetable growers. Outside the United
States aquaponics is proliferating in areas
such as the Virgin Islands, where herbs,
leafy vegetables, tomatoes, cucumbers,
peppers, onions, and other crops are
being raised, using fish as fertilizer. It
is also interesting to note that research
is being done by some of the nation’s
major lighting manufacturers to explore
the efficient use of now-abandoned
tobacco warehouses as indoor facilities
for production of aquatic and vegetable
products.
Angela Caporelli summed up
the situation with a positive outlook.
“We need more water acreage,” she
said. Then she thoughtfully added,
“it will be good if Kentucky farmers
will experiment with their existing
ponds … they can learn a lot about fish
production with existing ponds and
waterways … and that will help them
feed their family, add variety to Kentucky
Proud Farmers Markets, and prepare
them for future production.” v
Farm to Plate
Courtesy of the United States Catfish Institute
To learn about many healthy, great-tasting uses for genuine U. S. farm-raised
catfish visit the website of the United States Catfish Institute:
http://www.uscatfish.
Farm-raised catfish is raised in pure, freshwater ponds and fed a strict diet
of nutritious grains – which ensures quality and gives U. S. Catfish a mild flavor
that works in almost any recipe.
From chowder to tacos, U. S. Catfish provides the freedom to experiment
with virtually any flavor.Thanks to hard-working American farmers, you can
rely on fresh catfish year-round.
Catfish Skewers
with Pineapple-Orange Marinade
1 pound - catfish filets (cubed)
6 ounces – pineapple/orange juice
1 tablespoon brown sugar
2 teaspoons olive oil
1-1/2 cups fresh cubed pineapple
1-1/2 cups red grapes, or peeled orange sections, or
diced carrots
Place cubed catfish in a shallow dish with juice, brown sugar, and olive
oil. Toss to coat. Marinate in refrigerator for about one hour.
Place catfish, cubed pineapple and grapes (oranges or carrots) on
skewer. Baste with pineapple/orange marinade. Grill, while basting occasionally. Cook until fish flakes easily. Serves 6.
www.AgCreditOnline.com
Third Quarter 2012, Ag Credit Leader / 11
Tim White Attends Beef Conference
Courtesy of the Kentucky Cattlemen’s Association
T
im White, owner/manager of
TA White Farm, LLC, was one
of over 50 young cattlemen
and women selected to participate in
the National Cattlemen’s Beef Association (NCBA) 33rd Young Cattlemen’s
Conference (YCC) during June.
and witness futures trading firsthand.
Participants also visited Otto & Sons
Industries, a family owned company
providing quality products and custom solutions for the food industry
since 1909.That tour offered a view
of how boxed beef is turned into
custom order portions for both major
restaurant chains and some of the
nation’s top steakhouses.
Tim’s farming operation is located
in Fayette County, and he is a memberborrower of Central Kentucky Ag
Credit at the association’s Lexington
Office.
White was sponsored by the
Kentucky Cattlemen’s Association.The
Young Cattlemen’s Conference program is a comprehensive, nationwide
tour of beef industry sectors, created
to enhance leadership skills in beef
industry professionals.
Tim White’s Fayette County farming operation consists of 2,800 acres.
He has a 400-head cow/calf operation
that consists of purebred Angus, Red Angus, and a commercial herd. Crossbred
cows serve as recipients for embryo
transplant calves. His herd of purebred
cows is used for seedstock purposes.
Tim also backgrounds 1,200 head of
feeder cattle.
White has been in the cattle business for 22 years. He is a graduate of
Eastern Kentucky University with a degree in beef cattle management. White,
his wife Amy, and their family are active
in showing cattle and in sports.
“This was a tremendous opportunity to meet other producers and learn
valuable tools to take back home to
our operations,” he said.“It’s great to
learn how we as producers can have an
impact on policy issues as well.”
The eight day tour began at NCBA
headquarters in Denver, Colo., where
participants were given an organiza12 / Third Quarter 2012, Ag Credit Leader
tional overview of NCBA and the Beef
Checkoff Program. While in Denver, the
group also heard from representatives
of Cattle Fax and the U.S. Meat Export
Federation.They toured a Safeway retail
store and learned about Rancher’s
Reserve brand beef marketing efforts.
The group spent a day in Greeley, Colo.,
visiting JBS Five Rivers feed yards and
processing facilities.
“It is really important for participants to see each sector of the beef
industry – from farm to fork,” said White.
“Traveling from a cow/calf ranch to
a feedlot and processing plant really
drives home the point that our industry
is composed of many sectors - sectors
that are all striving to produce a healthy
end product.”
In Chicago, the group met with
senior management of the Chicago
Mercantile Exchange at the Chicago
Board of Trade.They had the chance
to observe activity on the trading floor
The group then traveled to Washington, D.C., where participants were
greeted at a reception hosted by
John Deere.The following morning,
the group received an issues briefing from NCBA’s government affairs
staff about policy issues currently
facing the cattle industry. Later in the
day, YCC participants were given the
opportunity to visit one-on-one with
members of their state’s congressional
delegation, expressing their viewpoints regarding the beef industry
and their cattle operations. During their
congressional visits, participants focused
on issues including the 2012 Farm Bill,
federal lands ranching and overreaching
regulations proposed by the Environmental Protection Agency.
The group then traveled to Aldie,
Va., for a tour and barbeque at Whitestone Farms, one of the nation’s elite
purebred Angus operations.
The National Cattlemen’s Beef
Association (NCBA) has represented
America’s cattle producers since 1898,
preserving the heritage and strength of
the industry through education and public policy. As the largest association of
cattle producers, NCBA works to create
new markets and increase demand for
beef. For more information on the YCC
program or to nominate someone for
next year’s tour, contact the Kentucky
Cattlemen’s Association or Marvin Kokes
at 303-850-3339 or mkokes@beef.org. v
www.AgCreditOnline.com
Drought Information Available Online
E
ditors of the “Leader” recently
researched information
regarding crop and cattle
outlooks for Kentucky, only to discover
that much of the information is
outdated.
the information deficit by creating a
website devoted to Kentucky drought
topics. The web site contains stories
and news by UK specialists, along with
hotlinks that are relevant to the current
weather situation throughout Kentucky.
A large percentage of production
forecast information was posted to the
web by UDSA and various state sources
prior to the drought.They had no idea in
late 2011 that the drought of 2012 was
in the offing.
Needless to say, central Kentucky
farmers are racking their brains to
determine how the drought has affected
their crop and livestock situations.
The University of Kentucky College
of Agriculture (UK) has helped to solve
While rain has occurred in many
areas it may do little to help the crop,
since 90% of the corn had already
tasseled and 76% had silked as of July
15. And, when corn and bean harvests
are threatened, the impact on livestock
follows.
Up-to-date drought information
can be obtained on the new UK
Drought Resources web page at
http://drought.ca.uky.edu. v
According to the July 15 Kentucky
Weekly Crop and Weather Report, 77%
of the state’s corn crop was rated poor
or very poor.
Beware of Poisonous Plants
Keep water and shade available
Don’t assume that automatic water systems and appliances
are working.
www.AgCreditOnline.com
Nitrate poisoning is a real possibility. That is one of nature’s
tricks. Folks are trying to salvage corn crop disasters, but toxic
nitrate levels are definite
possibilities. Drought, heat, stunting, and high fertility levels mean that
increased nitrate levels are likely. Nitrate levels should be assessed before proceeding to salvage the corn crop. Corn plants with high
nitrate levels should not be grazed,
fed as green chop, or cut for hay.
Nitrate levels will not decrease in
hay during storage. Ensiling can be
a viable option since about 40%-60% of nitrate is lost during
Cattle producers must keep an eye on their feed stocks for winter
feeding. Many people had lower
hay yields this spring and feeding
now has likely decreased their hay reserves. Consider purchasing feed
now before prices get higher. v
NIKNAR is the name of
Jim Rankin’s farm in Bourbon
County.
2.
5.
6.
Did you guess the secret?
Beware of poisonous plants. Drought and hot weather increase
the likelihood of cattle consuming poisonous plants. Several poisonous
plants, like perilla mint aren’t normally consumed by cattle, but
since they grow in the shade
where cattle are spending most of their time, cattle might consume them.The suggestion is to take hay to areas where cattle congregate
so they won’t be as tempted to consume unusual plants.
Alternative feeds will be an option to decrease feed costs. Don’t take chances with new or exotic
alternative feeds. Check with your UK County Extension Agent if you have questions.
fermentation, but check for nitrate since extremely high levels might
be difficult to overcome. Don’t feed silage until it has had about three
weeks to become fully ensiled.
Cattle may become accustomed to
low levels of nitrate if they are
gradually adjusted to them.
1.
4.
The name spells “Rankin”
backwards.
D
r. Roy Burris has warned that
poisonous plants can be a
threat to livestock during
Kentucky’s dry weather conditions. The
following information can be helpful
to full-and part-time farmers, especially
those who are new to the farming
occupation.
3. Early weaning of calves might be beneficial to minimize nutrient
needs of spring-calving cows. Calves can be fed to make efficient
gains and sold as heavier, weaned calves.
If you guessed correctly, go
have a cold glass of iced tea or
something. If you didn’t guess
the answer, shame on you.
Dr. Roy Burris
University of Kentucky Research &
Education Center, Princeton, Kentucky
Third Quarter 2012, Ag Credit Leader / 13
Lisa Yeager Promoted to Loan Officer
L
isa Yeager has been
named a Loan Officer
with Central Kentucky
Ag Credit. She will serve the
association at the Lexington
office, and she is a resident of
Harrodsburg in Mercer County,
Lisa’s career with
Central Kentucky Ag Credit
spans nearly nine years. She
has served in the Lexington
office for the past two years as a Senior Loan Assistant, after
having transferred there from the Danville Ag Credit office.
She served in Danville for 6-1/2 years.
Prior to her work with Central Kentucky Ag Credit,
she was an Assistant Instructor in the EBD Department of
the Mercer County School System, and she was a child care
provider in Mercer County for 19 years before affiliating
with the school system in Mercer County.
Lisa’s promotion to Loan Officer at Lexington Ag Credit
will encompass lending activity in seven (7) Bluegrass
counties, including Fayette, Woodford, Jessamine, Franklin, Scott,
Clark, and Anderson. Ag Credit provides a broad range of lending
services throughout 17-counties in central Kentucky, through
offices located in Lexington, Danville, Stanford, Lebanon, Paris,
and Richmond. The association is one of the largest rural lenders
in the Bluegrass Region, with assets exceeding $350 million.
Lisa’s educational background and experience is extensive,
including lifetime membership in the Delta Epsilon Academic
Honor Society. She earned her Associate Degree in Business
Management and Marketing from Bluegrass Community and
Technical School in Lexington; she studied at Eastern Kentucky
University in Richmond; she completed the Lifestyle Lending
Course in the Farm Credit University, graduating with honors; has
studied Advanced Branch Accounting and Operations; and she has
also completed many other Ag Credit/Farm Credit management
and training courses.
Lisa’s husband, Jimmy Yeager, is a partner in the Mercer
County construction firm of Cecil Bros. and Yeager. Lisa and
Jimmy are the parents of four grown children and five grand
children. Children include Nicki Bailey, Buddy Yeager, Danni
Sutton, and Staci Yeager, all of whom are Mercer County
residents. v
Katie Banks Joins Country Mortgage
Program Full-Time
K
atie Banks has been
named a full-time
Mortgage Loan
Originator with Central
Kentucky Ag Credit. She is a
native of Danville, Kentucky
and has worked part-time in
Ag Credit’s Country Mortgage
Division at Richmond while
completing her college
degree.
Katie’s work in the Ag Credit Country Mortgage
program started in March 2011, and she has been an
assistant to Diana McDowell, Country Mortgage Loan
Originator, since that time. Katie’s promotion and full-time
employment in the Country Mortgage Program represents
a promotion for her, and an expansion of Ag Credit’s rural
home lending program.
In addition to her work in the Country Mortgage program
for the past 15 months, Katie brings an excellent background
to the Ag Credit team. She earned her Ag Business Degree from
Eastern Kentucky University. She graduated Magna Cum Laude
from Eastern Kentucky University, and attended college as a fouryear University Regent Scholar. Katie was also a member of Delta
Tau Alpha, an academic honorary society; was a member of EKU’s
Ag Ambassadors; and she was President of the Eastern Kentucky
University Ag Club for two-years.
Katie’s background includes activity with many farm
organizations, including past membership in the Central
Kentucky (and Kentucky) Junior Angus Associations, and present
membership in the American Angus Association. She is also a
member of the Danville Presbyterian Church.
Katie is the daughter of John and Susan Goggin of Danville,
and she is married to Andy Banks, a native of Springboro, Ohio.
Katie and Andy will reside in Danville, Kentucky. v
She will be headquartered in the Danville Office of
Central Kentucky Ag Credit and her work will encompass
lending in several central Kentucky counties.
14 / Third Quarter 2012, Ag Credit Leader
www.AgCreditOnline.com
Community Warriors in Marion County
One of Ag Credit’s finest warriors helped to raise money
for St. Jude hospital in Marion County on June 23. Justin Craig,
a Loan Officer at Ag Credit’s Lebanon location, participated in
the “Warrior Dash” as one of more than 5,000 who registered
for the event. Participants were required to run a three-mile
course where 14 obstacles challenged their minds and bodies.
Obstacles included crawling through mud, climbing cargo nets,
leaping over fire, and crawling under barbed wire. Individuals
who completed the obstacle course at the St. Jude fundraiser
were treated to a free beer and a piece of chicken.
Harry Young, Ag Credit’s Vice President in Lebanon, said “it
was amazing to see what Justin would do for a beer!”
Alex Mattingly also participated in the Warrior Dash. He
is the son of Susan Mattingly, Ag Credit’s Loan Assistant in
Lebanon v
These clean-cut fellows are shown before the Warrior
Dash. At the time this photo was made, it was uncertain
what the Sheriff planned to do, i.e., guard participants, be a
participant, or arrest the people who participated! In any
case, shown (left to right) are Marion County Sheriff Jimmy
Clements, Dave Winebrenner, and Ag Credit’s Justin Craig.
By the way – it was later learned that Sheriff Clements
participated in the muddy event.
(Before, left): Shown here (left to right) are Justin Craig,
Kevin Brown, and Greg Mills. The trio were smiling and
clean for the start of the Warrior Dash. However, the “clean”
part soon became dirty as they competed on June 23.
The guy in the sunglasses (second row, right) is Alex
Mattingly, son of Lebanon Ag Credit Loan Assistant Susan
Mattingly. Alex and three of this group work with Alltec.
But they were not working when this photo was taken. They
were being rowdy. Alex’s mom, Susan, boasted that her
son placed 244th out of 5,170 participants at the St. Jude
fundraiser. He placed 103rd out of 990 participants in the
20-29 age group, and his finish time was 31:44:70.
www.AgCreditOnline.com
(After, right): This dirty trio consists of (left to right)
Greg Mills, Justin Craig, and Kevin Brown. Yep, these were
the same guys that are shown on the “clean” photo, still
smiling, but a bit worse for the wear after running the
St. Jude three-mile obstacle course in June.While we don’t
know the finishing scores of the other two guys, it is known
that Ag Credit’s finest, Justin Craig, finished 256th out of
5,170 participants, and he finished in 104th place out of
990 participants in the age group of 20-29. Justin’s time
score in completing the three-mile obstacle course was
31:51:15.
Third Quarter 2012, Ag Credit Leader / 15
PRSRT STD
US POSTAGE
PAID
Central Kentucky
Agricultural Credit Association
COLUMBIA SC
PERMIT 1160
P.O. Box 1290
Lexington, KY 40588-1290
Service. It’s the way we do business.
That means more money in your pocket.
Ag Credit has lowered rates for many customers in past years, even though customers
had already fixed their interest rate at a higher level. Patronage distribution has also
added to savings that Ag Credit members have experienced. That’s the way we do business
… always in the best interest of providing customers with competitive, reliable farm credit.
Providing farm credit services in 17 Kentucky counties
Danville
1-800-589-4261
Lebanon
1-800-264-0402
Lexington
1-888-820-3270
Paris
1-800-613-4292
www.AgCreditOnline.com
Richmond
1-888-820-3221
Stanford
1-800-467-0039