I N T H I S I S S U E

2 DiD You Know:Ryan Berg, Vice President, Field operations

3 CRoP insuRanCe news Drought Response

Gary Kopp, Regional sales Manager

4 news FRoM the FielD new employees, milestones, retirements

and upcoming events

5 CustoMeR sPotliGht From Dirt to Dessert

an interview with the Condill Family

in arthur, illinois

6 CRoP insuRanCe news Crop insurance 101 workshops

Continued from page 3

FARM CREDIT view

This year’s harvest

yields have delivered

a sobering dose of

reality. Daily tes-

timonies over the

past two months

from Farm Credit

customers remind us of the toll this summer’s

drought and record heat have taken on corn

yields throughout our service area. We knew

it could be ugly and indeed many farmers

with decades of experience have harvested

fields setting new record lows for yields. A

few have encountered corn fields averag-

ing single-digit yields. Fortunately, there are

also some pleasant surprises that surpassed

expectations with yields from near one-

hundred to the upper one-hundreds. But for

a year when input costs may have reached a

new high, there is no denying that production

agriculture will remember 2012 as a year of

disappointment.

We know poor yielding corn and soybean

fields take much of the fun out of farm-

ing – even if a crop insurance claim will be

supplementing some of the shortfall. We also

recognize the consequences of the drought

echo from the grain farmers to much of the

Illinois agricultural industry. Livestock growers

face reduced feed availability and higher feed

costs. Virtually everyone involved in produc-

ing, using, or handling grain is impacted.

It would seem intuitive that this year’s harvest

leaves farm families with a bitter taste.

However, in an amazing demonstration of

resiliency, many farmers chose to face this

year’s adversity with gratitude. They remain

thankful for what they have. They know they

don’t have to look too far to find someone

who faces a more difficult situation in life.

Sometimes it takes adversity to remind us

to open our eyes more fully and recognize

the many blessings we too often take for

granted. This challenging year in agriculture

is an appropriate time to inventory our most

important blessings and priorities. Faith, fam-

ily, friendships, and freedom usually are at the

top of the list. Of course, each of those gifts

has responsibilities and personal commit-

ments that go with maintaining them.

Farm Credit has an attitude of gratefulness

too. We are thankful for several consecutive

years of strong financial performance and we

are blessed to work with stockholders who

manage strong balance sheets and give our

Association’s loan portfolio a stellar credit

quality of 99.6%. We are well positioned to

manage through the financial impact of this

Grateful Attitudes Help Sweeten Bitter HarvestBy Dave Owens, C.E.O.

year’s severe drought.

In August, the Board of Directors and manage-

ment team established drought relief assistance

programs being offered to the cooperative’s

stockholders. Although we can’t make it rain or

restore a lost crop, Farm Credit is committed to al-

ways being there to support our customer owners. Please see Grateful Attitudes, page 2

“As a cooperative business, our overriding concern is for the financial viability of our

customer stockholders.”

FALL EDITION 2012 • news & hiGhliGhts FRoM FaRM CReDit seRViCes oF ill inois

2

Account Access: Check Out FC ConnectBy Ryan Berg, Vice President Field Operations

Last May, we launched a revised online banking

account access website, FC Connect.

• FC Connect allows you to view all of your

Farm Credit Services of Illinois lending

relationships in one place.

• If you have already enrolled, FC Connect

can be accessed by visiting fcsillinois.com

and clicking on Account Access at the top

of the screen. If you haven’t enrolled, click

on Resources>online tools>online BAnking

and begin the process of setting up an FC

Connect account.

• An interactive demo for our system is

located under ResouRces >online tools

>online BAnking so you can explore the

FC Connect environment. If you have

already enrolled, you

can access this demo

directly from the

welcome screen.

• You can access a

variety of documents

by selecting

Statements and Bills

from the menu at the

top of the screen or

from the “i would like

to” section. Copies of

statements, bills and

tax documents are available.

• If you would like to transfer money either

to or from another financial institution,

contact your local Farm Credit office. Once

you receive access, you will see a “mAke A

pAyment” or “mAke A disBuRsement” link under

the “i would like to” section. You can also

transfer funds between your Farm Credit

loan accounts.

• You can view all of your current principal

and interest balances as well as any

balances in Funds Held. You can also

view your interest rates and the amount of

interest you have paid and earned for the

current year and prior year.

• If you have sight drafts tied to your

operating loan, you can view copies of

cleared drafts by clicking on the blue draft

number on the Account Transaction screen.

• FC Connect allows you to view your

Funds Held activity separate from your

loan activity. This feature is only available

through FC Connect.

Our staff is prepared to assist stockholders

facing unexpected cash flow challenges as a

result of the drought by restructuring existing

loans to defer current payments and ease

immediate cash flow shortages. Additionally,

Farm Credit invites individual borrowers to

consider the current opportunity of locking

in historically low long-term interest rates

to help manage future interest rate risk.

Finally, all borrowers who have an existing

operating loan are receiving an interest-free

period – for up to $100,000 of the loan

balance on existing operating loans – during

the traditional harvest months of September,

October, and November. This program is

automatically applied to eligible operating

loans as of September 1; all interest charges

on loan balances up to $100,000 through

November 30, 2012, will be credited back to

the account balance.

As a cooperative business, our overriding

concern is for the financial viability of our

customer stockholders. Farm Credit is com-

mitted to standing with our stockholders

through both the prosperous as well as the

challenging times in agriculture. We fully

recognize both the economic and emotional

struggle farm families face from this year’s

harvest.

For many, it was a bitter harvest. But we can

all still choose an attitude of gratitude for our

most important blessings that will sweeten

the bitterness of this year’s adversity.

Continued from page 1Grateful Attitudes

3

2012 DROuGhT REsPONsE

Should I do anything

different with crop

insurance next year? Due to the drought of

2012, this growing season will go down in

the history books. Many producers question

whether they should make changes to their

crop insurance coverage for 2013. Illinois

corn ranged from 0-70% of normal yields

while drought stricken soybeans recovered

after late rains in mid August. Despite higher

commodity prices, 2012 grain revenue will be

down with more than half of most producers’

cash incomes coming from corn. What is

filling the gap? In most cases crop insurance

is filling the revenue gap.

Many producers believe they had the correct

level of coverage this year. A USDA report

indicated 8.8 million of Illinois’ insured corn

acres were at or above the 75% coverage

level. The same report showed 79% soybean

acres insured at or above the 75% coverage

level. Depending upon your budget and

risk management objectives, these could be

considered adequate policies. However, when

20% of Illinois corn and soybean acres have

either a lower level of insurance or none at

all, there is room for improvement in 2013.

Producers pay one way or another. If you

choose to adequately insure your crops, you

pay the premium each year. If you make

the decision to leave your crops uninsured

or select a lower level of coverage and you

experience a significant drought like we

did this year, how many years of premium

savings on a lower plan (or no plan) does

it take to recover lost income?

Something to consider.

LOOkING AhEAD

First, make sure you understand what

is available through the standard MPCI

program. With 95% of policies based on

a producer’s APH or average yields, make

sure your policy includes two important

options – YA (Yield Adjustment) and TA

(Trend Adjustment). These will give you the

best insurance yield, recognizing higher trend

yields with better farming practices (TA), and

replacing very low yields (as in 2012 or prior

years) with at least 60% of a county yield (YA).

Next, your policy should protect against both

yield loss and price change, choose either RP

(Revenue Protection) or GRIP HRO (Group

Risk Income Protection with Harvest Revenue

Option). Yield only policies – YP (Yield

Protection) or GRP (Group Risk Plan) are still

good plans. But avoid revenue-only plans

- RP-HPE (Revenue Protection with Harvest

Price Exclusion) and regular GRIP, which in

2012 may have disappointed producers.

These revenue-only plans cover less yield

as Harvest Prices increase (corn up 32%,

soybean price up 23%), so the protected

yield decreases by the same percentage. Your

Farm Credit crop insurance specialist can

explain further.

2012 GRIP or GRP county plans may pay out

extremely well given the low yields on corn

and possibly soybeans in 2012. They are

designed to pay well in years like 2012, but

in most years loss payments on GRIP and

GRP are well under the expensive premiums.

If you were on this roller coaster in 2012, you

probably will be thrilled and ready to ride

again. But the cost each year, plus the lack of

protection for your individual operation, may

keep most people away from these plans.

Due to legislation, GRIP coverage may be cut

back in 2014.

Producers with land in High Risk (flood

prone) areas will have a new option in

2013 called HR-ACE – High Risk Alternate

Coverage Endorsement, which allows

separate buy up coverage on HR acres. Your

2013 choices:

1. With HR ACE, your HR acres in the

policy could have 65% RP coverage

while your other land has 75% RP

coverage. HR ACE acres must be on

basic or optional units but you can have

any unit choice, including Enterprise, on

the regular acres.

2. You can still insure high risk acres

with your other land—all at same %

level—and pay the higher premium on

HR acres.

3. Or you can simply not insure the HR

acres at all with a High Risk Land

Exclusion HRLE.

4. Or finally with the HRLE, you can

exclude the HR acres and cover these

with a CAT policy (50% of yield, 55% of

price). Remember CAT has only a $300

fee per crop, and no premium due.

Crop Insurance News & UpdatesBy Gary kopp, Training Coordinator of Related services

Crop Insurance News

4

Field News

Important Dates

kim DeterdingRed Bud

Farm Credit Team MilestonesA special salute to employees reaching years of service milestones.

5 YearsRuss DetersEffingham

Mark Your Calendar

15 Yearsshari Edwards

sherman

15 YearsJudi NeeseJerseyville

Welcome AboardMeet the newest staff members in our regional offices.

Amy Deibertsherman

Dana AdamsDecatur

15 YearsMargie Meyer

Effingham

5 YearsPenni hart

Jacksonville

sharon WaldhoffEffingham

Craig koorsharrisburg

Joe horabikJacksonville

5 Yearshollie NixonJerseyville

5 YearsJill hunt

Lawrenceville

5 YearsErrol MaulMahomet

5 YearsCheri Lange

Red Bud

5 YearsLee WatersMahomet

• November 16 Decatur Ladies Bus Trip - Michigan Avenue, Chicago, IL Jacksonville Ladies Bus Trip - Chesterfield Mall, Chesterfield, MO Lincoln Ladies Bus Trip - St. Louis Galleria Mall, St. Louis, MO Mahomet Ladies Bus Trip - Woodfield Mall, Schaumburg, IL Mt. Vernon Ladies Bus Trip - South County Mall, St. Louis, MO Springfield Ladies Bus Trip - Chesterfield Mall, Chesterfield, MO Taylorville Ladies Bus Trip - West County Shopping Center, Des Peres, MO

• November 22- 23 Closed - Thanksgiving Holiday Observed

• November 28 Farm Credit College - Farm Financial Analysis - Kellers Convention Center, Effingham, IL

• November 29-30 Lincoln and Springfield move to Sherman, IL

• December 6 Farm Credit College - Beyond Fundamentals: Managing Crop Price Risks - Crowne Plaza, Springfield, IL

• December 7 Harrisburg Ladies Bus Trip - Opryville Mall, Nashville, TN

• December 13 Farm Credit College - A Focus on Farm Family Succession & Success - Hamilton’s, Jacksonville, IL

• December 24-25 Closed: Christmas Holiday Observed

• For all upcoming events, go to our website: www.fcsillinois.com

5

Customer Spotlight

From Dirt to Dessert“The 200 Acres” Provides Family Fun on the Farm

The entire Condill family is passionate

about produce –cucurbits in particular, a

technical term for pumpkins, squash and

gourds. Nestled in the heart of Illinois

Amish country, locals know the Condill

farming business as The Great Pumpkin

Patch. But that’s just one of three

businesses under the banner of The 200

Acres – The Great Pumpkin Patch, The

Homestead Bakery added in 2006, and

then Homestead Seeds was introduced in

2009. Mac refers to the seed business as

their “newest pumpkin on the vine”.

Along with his two brothers, Mac Condill

is a fifth generation farmer. “We’ve been

in business as a family since 1989,” said

Mac, “but the farm was homesteaded

in 1859 by the McDonald family on my

mother’s side.” A large part of the mission

of The 200 Acres is to provide a true

farm experience for visitors. “If we can

open our place up to let people experience

a farm and nature and what it is to be

connected to the land –

then we’ve succeeded,”

said Mac. But don’t

let his signature floppy

hat and easy-going

manner fool you. He

is extremely bright,

ambitious and has a

highly honed business

sense. He has definitely

put The 200 Acres

on the map with

appearances on the

Martha Stewart Show,

displays at the White

House, and a display at

the national Heirloom

Exposition in California.

Mac Condill has coined the term ‘dirt to

dessert’ for what they do at The 200

Acres. “We grow it, we care for it, we

produce it, we sell it,” said Mac. “We have

so much diversity here: diversity in plant

offerings, cultural diversity with the Amish

community and diversity in our cucurbit.”

They currently grow 400 varieties of the

vegetable. That diversity becomes obvious

when you drive around and see the

displays and unique

presentations of this

amazing vegetable

family. And visiting

children are delighted

with the animals on

site: Tom Turkey, the

three Billy Goats Gruff,

a llama, an Alpaca,

pot-bellied pigs, and

unique breeds of

roosters and chickens.

This year’s favorite animal is Thomas, the

little baby lamb who is bottle fed daily and

follows Mac around like a puppy.

Where does Farm Credit come into all

of this? “As the business was growing

naturally,” said Mac, “we were buying

and selling baked goods from a third party

vendor. So I thought this may be something

we could produce ourselves and turn into

a full-fledged, year-round business.” That’s

when Mac and one of his brothers and

their wives seized the opportunity to buy

an existing Amish bakery. They turned to

Farm Credit for the capital. According to

Mac, “we chose to work with Farm Credit

because of their flexibility. Plus our dad

had been working with them for years.

We’re ag-based and roll the dice year-

to-year with the weather like every other

farmer. Not everybody gets that. But Farm

Credit does. They understand this is a

journey and they’re partnering with us for

the long-term.”

The Great Pumpkin Patch’s official season

is September 15 through October 31. The

Homestead Bakery and Homestead Seeds

are open year round. To learn more, visit

their website: the200acres.com

Mac Condill holding a Native American Douglas heirloom squash

1100 Farm Credit Drive

Mahomet, IL 61853

www.fcsillinois.com

Crop Insurance EventsCrop Insurance 101 and Winter Meetings

Five informative workshops began in

November to provide a comprehensive

discussion (2-3 hours) of crop insurance risk

management options.

If you are interested

in attending, please

call the Mt. Vernon or

Harrisburg office to

make a reservation

for these workshops.

There is no cost

to attend.

• November 12, 2012 9:00 AM - Noon Windsor Oaks, Grayville, IL

• November 13, 2012 9:00 AM - Noon John A Logan College, Carterville, IL

• November 27, 2012 2:30 PM - 5:30 PM Shawnee Community College, Ulin, IL

• November 28, 2012 6:00 PM - 9:00 PM Farm Credit Office, Mt. Vernon, IL

Please plan to attend our annual area

meetings beginning in December for a review

of the changes in crop insurance and to find

out how it will impact your 2013 coverage.

A full listing of meeting dates and locations

will be coming soon. Contact your nearest

regional office for details.

Crop insurance with Farm Credit. It’s a “good fit.”

Crop Insurance 101Back to the Basics