News

AgStart Jump-Starts Young Farmers

by Mark Parker

Andrew and Emily Schrader were up against a cold hard fact that everyone in agriculture knows all about:

Getting a start in farming or ranching is a mighty tough row to hoe for a young person. Andrew had the skills, he had the desire and he had the commitment. What he and Emily lacked was the capital necessary for a traditional loan down payment.

And that’s where Frontier Farm Credit’s AgStart program offered a leg-up. “It’s a great program,” Andrew says. “Frankly, I don’t think we could have done it any other way. We save what we can, but it would have taken a long time to come up with the money for this particular opportunity and by that time, it would have been gone.”

The opportunity was in the form of 80 acres of bluestem near Alma, Kansas, down the road from Wamego where Andrew and Emily live with their five-month old daughter, Leah Marie. Andrew grew up ranching with his father and uncle. After his dad left the operation, Andrew continued to be part of the commercial cow-calf enterprise but he didn’t own any land. When an 80 the operation had been renting came up for sale, it was his chance to get a start in a business he loves.

“I guess agriculture is in my blood,” explains Andrew, who is also the rental coordinator for Martin Tractor in Manhattan. “We always want to be involved with agriculture in some way and being able to buy this 80 gives us that opportunity.”

Frontier Farm Credit Financial Services Officer Justin Frank helped open the door for that involvement. Working with the Schraders, Frank utilized Frontier Farm Credit’s AgStart program to provide the capital for the land purchase.

“With AgStart, what we at Frontier Farm Credit are saying is that we recognize the value of sweat equity and hard work,” Frank explains. “Obviously there is more risk involved for us as a lender when a lesser down payment is required but we understand there’s a human factor that no computer can analyze. Character is very important to us and so is our commitment to helping young people get started in production agriculture.”

“Frontier Farm Credit is a mission-based lender,” he continues. “It’s our mission to help grow rural America and helping young farmers and ranchers get a start is a big part of that. We all know how difficult it is to start from scratch in farming or ranching. It’s a very capital intensive business so programs like AgStart, as well as financial services which facilitate generational transfer and estate planning, are our way of serving that next generation of Kansas agriculture.”

AgStart focuses on young farmers and ranchers—those who are 35 or younger—and beginning farmers and ranchers— those with 10 or less years experience managing a farm or ranch. Additionally, AgStart provides opportunities for minority applicants. The program includes operating, term and first-time real estate buyer loans with reduced down payment requirements for qualified applicants.

The whole thing is backed up by Frontier Farm Credit’s financial expertise and an individually tailored approach to agricultural credit. For the Schraders, the result is a future in being part of the agricultural community, raising a family in rural America and developing a productive ranching business.

“I couldn’t be happier with the program,” Andrew asserts. “Justin was very helpful to us. He asked about our ideas and our plans and he tracked land values in the area to help us make a good decision. And the process was pretty painless— there was a lot less paperwork than I expected.”

AgStart is just one aspect of Frontier Farm Credit’s commitment to agriculture and rural America. As President and CEO Doug Hofbauer explains, however, the program is a good example of what Frontier Farm Credit is all about.

“Our job is to serve agriculture and rural America,” he asserts. “The future of our industry and rural communities certainly lies in our youth and we have made a commitment to that future. We formed a team to develop AgStart to be a very competitive, flexible program for the young, beginning operator. We wanted it to be something that would give them a start in this industry and we’re very proud to accomplish that.”

Click here to learn more about the AgStart program, or visit with the folks at your local Frontier Farm Credit office.

President's Corner

If I were to sum up 2009 it would be – “not as bad as feared, but not as good as wanted.” At this time in early 2009, with the near collapse of the US financial system and the related headlines only a few months behind, it did not look good for 2009. In fact, we estimated that just being able to break even for the year would be a huge success. The great news is that we have been able to keep money flowing to our customers and by year end Association financials are showing improvement. Our Association annual report will be produced soon, but I thought I would share some key 2009 Association results with you and answer questions about some issues going forward.
Continue Reading>>

Click here to view all of our featured news and articles.

Of Intere$t

We recently rang in the New Year and, with that, a new decade. Many economists are looking back on the last 10 years as “the Lost Decade”. On January 1, 2000 we were still de-leveraging the internet stock market bubble and holding our collective breaths over lingering Y2K concerns. The events of September 11, 2001 changed Americans’ world views and affected almost every aspect of American life, agriculture being no exception. Yet, continued policy encouraged consumption and spending to stimulate economic activity, setting the stage for the next bubble – housing. Credit was easy and lenders seemed unconcerned that they were not being compensated for the risk in their portfolios. Even four dollar gas couldn’t slow this new economic paradigm. Our society took globalization to a new level and – in many regards – executed poorly.
Continue Reading>>

Click here to view all of our featured news and articles.

Crop Talk

Record yields, overall production and excellent market prices marked 2009, alongside record moisture, record low summer temps and most recently, record snowfall. I am always amazed how the weather and field conditions vary so much in our 41-county territory. Most producers had numerous challenges. However, the reward of good yields and strong market prices has made it all worthwhile. Challenges define agriculture. Your Frontier Farm Credit Insurance Specialists want to help you meet those challenges to maximize your crop insurance coverage.
Continue Reading>>

Click here to view all of our featured news and articles.

Leasing Residual

Some of the same leasing benefits that can ease cash flow or expand credit availability can also play a role in farm transition. Check out these examples that easing made possible!
Continue Reading>>

Click here to view all of our featured news and articles.

Business ¢ents

Planning Tips for 2010

As we start 2010, many things are uncertain – the market, weather, new tax laws. You often cannot control many of these, but you can develop a plan to help you reach success. There really is no such thing as “not having a plan.” Your federal and state government have rules and laws already set up for those who don’t choose to develop a plan of their own. Start 2010 by making your own plan for your family business.
Continue Reading>>

Frontier Farm Credit

Properties for Sale

Young, Beginning, and
Minority Lending

News

AgStart Jump-Starts Young Farmers

Featured News

AgStart Youth enhances 4-H experience

President's Corner

President's Corner

Of Intere$t

Of Intere$t

Crop Talk

Crop Talk

Leasing Residual

Leasing Residual

Business ¢ents

Business ¢ents

Press Releases

Latest Press Release

Latest Newsletter