ag...danville office p.o. box 326 485 north danville bypass danville, ky 40422 859-236-6570 •...

Third Quarter 2012

CREDITAg

Highlights

www.AgCreditOnline.com

Ag Credit’s New Director ..................6, 7, 8Fishing on Kentucky Farms ..........9, 10, 11Drought Information .............................. 13

Danville OfficeP.O. Box 326

485 North Danville Bypass Danville, KY 40422

859-236-6570 • 1-800-589-4261

Dale T. cinnamonAsst. Vice President

Relationship Manager

Joe Goggin Senior Loan Officer

Kim elliottLoan Specialist

Tina Roney Loan Assistant

Katie Banks Country Mortgage Loan Originator

leBanOn OfficeP.O. Box 544

842 West Main StreetLebanon, KY 40033

270-692-4411 • 1-800-264-0402

Harry YoungVice President - Credit

Richard MedleySenior Loan Officer

Justin craigLoan Officer

Brad Godbey Loan Officer

Jeanine WilliamsLoan Assistant

Susan W. MattinglyLoan Assistant

lexinGTOn OfficeP.O. Box 1290

640 South BroadwayLexington, KY 40508

859-252-4717 • 1-888-820-3270

Shane TurnerVice President - Credit

charles H. (chuck) canterLoan Officer

lisa YeagerLoan Officer

linda HaleyLoan Specialist

PaRiS OfficeP.O. Box 249

201 Commerce DriveParis, KY 40361

859-987-4344 • 1-800-613-4292

Russell GrayAsst. Vice President

Relationship Manager

Willie WilsonLoan Officer

Margie RoeLoan Assistant

Central Kentucky Ag Credit Offices

Shane TurnerVice President - Credit

Harry YoungVice President - Credit

ReGiOnal lenDinG ManaGeRS1-888-820-3270 Bud Burdette

Appraiser

aPPRaiSal SeRviceS

2 / Third Quarter 2012, Ag Credit Leader www.AgCreditOnline.com

RicHMOnD OfficeP.O. Box 492

1000 Ival James Blvd.Richmond, KY 40475

859-623-1624 • 1-888-820-3221

chris cooperSenior Loan Officer

Diana McDowellCountry Mortgage Loan Originator

Teresa ThomasLoan Officer

Karen SarverLoan Assistant

STanfORD OfficeP.O. Box 367

106 Agriculture WayStanford, KY 40484

606-365-7500 • 1-800-467-0039

John PeekSenior Loan Officer

Saravard von GruenigenLoan Officer

felicia MaddenLoan Specialist

Pamela JohnstonLoan Assistant

• Auto-Draft – Your payment just happens, even when you are busy or when you are away from home • Online Payment – You control your payment. Choose which of your personal accounts to draw from, and make your payment at the click of a mouse.

Call us. We’ll help you get started!

It’s that easy

[email protected]

Paul WylerAsst. Vice President – Principal Loan Analyst

cReDiT SeRvice

Make Your Life Easier

Who can Borrow from ag credit ?


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

Russell Gray Protects family Tradition

R

www.AgCreditOnline.com Third Quarter 2012, Ag Credit Leader / 3

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.

Who can Borrow from ag credit ?

by Robert Anderson

T

The LEADER is published quarterly for stockholders, directors, business associates and friends of the Central Kentucky Ag Credit Association.

aDDReSS cHanGeSAddress 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 infORMaTiOnThe 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.

PReSiDenT & ceOJames W. caldwell

BOaRD Of DiRecTORSalvin lyons

ChairmanSteve DownsVice ChairmanJames l. MayJerry Rankin

James c. Rankin, iiiDavid c. Sparrowlionel Williamson

eDiTORRobert anderson

PRivacY POlicYYour 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

Central KentuckyAgCredit


ag credit Takes Music History to communities

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 nationally-known folk singer. Ag Credit officials will be moderators at each session.

“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 [email protected]; or email [email protected]; or call Toni Melton at 859-255-5700. v

“MCaldwell

May

Anderson

Johnathon

Holiday Closings

LABoR DAYMonday – September 3

CoLuMBuS DAYMonday – October 8

VETERAn’S DAYMonday – November 12


D 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 producer-lender 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” producer-lender 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

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.

Another trait of an effective winning team is a “two-way street” learning environment. Many associations

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.

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

Traits of a Winning Producer-lender Team

Dr. David M. Kohl President

AgriVisions, LLC

By Dr. David M. Kohl


J

Jim Rankin followed The call To farming; He is ag credit’s new Director Bourbon county native combines creativity, hard work, and strong principles 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.

An Introduction

Claude L. Brock, Writer

Photography by Robert Anderson

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

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.

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.”

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

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.


Jim Rankin followed The call To farming; He is ag credit’s new Director Bourbon county native 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.

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.

“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 dif-ferent because I was impor-tant in the life of a child.” Quotation Gift to Jim from a Friend

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.

Continued on page 8

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 off-road 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


“Rankin” Continued from page 7

Jim Rankin observes while a groom holds one of his racing Thoroughbreds, “Wild Alex”, 5-year-old gelding, whose sire is Wild Zone and whose dam is Sassy Alex. The day before this photo was taken in mid-July, Wild Alex raced at River Downs near Cincinnati, placing second. Wild Alex is a $50,000 career earner.

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.

Angela Caporelli

Aquaculture Coordinator & Marketing SpecialistOffice 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

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

fishing on Kentucky farms? What’s That all about?

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

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!

By Claude L. BrockPhotos courtesy of the Kentucky Department of Agriculture

F

Continued on page 10

www.AgCreditOnline.com Third Quarter 2012, Ag Credit Leader /9

fishing on Kentucky farmsContinued from page 9

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

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

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.

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 home-grown products, which results in more business for producers.

The learning curve to enter aquaculture may not be as steep as

10 / Third Quarter 2012, Ag Credit Leader


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

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.

Courtesy of the United States Catfish Institute

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 occa-sionally. Cook until fish flakes easily. Serves 6.

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.

Farm to Plate

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 Associa-tion (NCBA) 33rd Young Cattlemen’s Conference (YCC) during June.

Tim’s farming operation is located in Fayette County, and he is a member-borrower 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 pro-gram is a comprehensive, nationwide tour of beef industry sectors, created to enhance leadership skills in beef industry professionals.

Tim White’s Fayette County farm-ing operation consists of 2,800 acres. He has a 400-head cow/calf operation that consists of purebred Angus, Red An-gus, 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 busi-ness for 22 years. He is a graduate of Eastern Kentucky University with a de-gree in beef cattle management. White, his wife Amy, and their family are active in showing cattle and in sports.

“This was a tremendous opportu-nity 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 organiza-

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 par-ticipants 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

and witness futures trading firsthand. Participants also visited Otto & Sons Industries, a family owned company providing quality products and cus-tom 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.

The group then traveled to Wash-ington, D.C., where participants were greeted at a reception hosted by John Deere. The following morning, the group received an issues brief-ing 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 view-points 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 Environ-mental Protection Agency.

The group then traveled to Aldie, Va., for a tour and barbeque at Whit-estone 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 pub-lic 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 [email protected]. v

Tim White attends Beef conferenceCourtesy of the Kentucky Cattlemen’s Association

T



EDrought information available Online

ditors of the “Leader” recently researched information regarding crop and cattle

outlooks for Kentucky, only to discover that much of the information is outdated.

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.

The University of Kentucky College of Agriculture (UK) has helped to solve

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.

1. 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.

2. Keep water and shade available Don’t assume that automatic water systems and appliances are working.

Beware of Poisonous Plants 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.

4. 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.

5. 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

Dr. Roy BurrisUniversity of Kentucky Research &

Education Center, Princeton, Kentucky

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.

Needless to say, central Kentucky farmers are racking their brains to determine how the drought has affected their crop and livestock situations.

According to the July 15 Kentucky Weekly Crop and Weather Report, 77% of the state’s corn crop was rated poor or very poor.

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

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.

6. 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

D

NIKNAR is the name of Jim Rankin’s farm in Bourbon County.

Did you guess the secret?

The name spells “Rankin” backwards.

If you guessed correctly, go have a cold glass of iced tea or something. If you didn’t guess the answer, shame on you.

Katie Banks Joins country Mortgage Program full-Time

L


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.

She will be headquartered in the Danville Office of Central Kentucky Ag Credit and her work will encompass lending in several central Kentucky counties.

Lisa Yeager Promoted to Loan Officerisa 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

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 four-year 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

K


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.

(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.

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.

PRSRT STDUS POSTAGE

PAIDCOLUMBIA SC PERMIT 1160

Central Kentucky Agricultural Credit AssociationP.O. Box 1290Lexington, KY 40588-1290

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.

Danville1-800-589-4261

Lebanon 1-800-264-0402

Lexington 1-888-820-3270

Paris1-800-613-4292

Richmond1-888-820-3221

Stanford1-800-467-0039


Providing farm credit services in 17 Kentucky counties

Service. It’s the way we do business.

That means more money in your pocket.

ag...danville office p.o. box 326 485 north danville bypass danville, ky 40422 859-236-6570 •...

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