DAVE’S VIEW
David Janish, CEO
Greetings:
Farmers and ranchers have to deal
with many uncertainties over which
they have no control. Interest rates,
weather and prices are just a few
that can have a significant impact
on operations. In 2018, almost
all of these appear to be working
against Missouri agriculture. The
steady rise of short-term interest
rates, continued low commodity
prices (potentially being further
impacted by trade uncertainties)
and wide-spread drought conditions
across Missouri are increasing the
level of concern and anxiety.
I clearly remember similar
times as I was growing up in
South Dakota. At the time I was
attending college and working
on the farm during the summer.
Other than a few “sprinkles” in
the spring, there was virtually no
rain through the summer. There
was no grass; no hay; no alfalfa; no
corn, oats, or barley. Although my
father always had some carry-over,
that was used up early and he had
4 HEARTBEAT | FALL 2018
to purchase hay, corn and other
feed for livestock. I remember my
father going to the Farm Credit
offices discussing his needs to get
him through to the next year with
his loan officers. Fortunately in my
father’s case, he had a successful
track record, a disciplined approach
and a plan for getting through the
challenging times. He had made
good production and financial
decisions during the good times
that helped to carry him through
the difficult ones. As a result, Farm
Credit was there when he needed
that extra support.
Many of us at FCS Financial
have similar stories, and they
influence our approach during
times of stress in agriculture. Our
philosophy continues to be to work
with our member-owners who are
cooperative and display long-term
viability through both good and
bad production cycles. Our intent
is to work with our borrowers to
find the best possible outcome that
works for both the producer and
FCS Financial. This does not mean
that the answer will always be “yes.”
In all likelihood it will require
some give-and-take on both sides.
We won’t always agree on each
individual issue, but it’s important
to realize both sides want the same
thing: to support a long-term,
sustainable and viable operation.
Ultimately, it will come
down to good communications.
Our value statement reads “Our
member-owners expect our actions
to be consistent with our words and
our words to be consistent with our
intentions.” That commitment to
open and honest communications
is important for both parties during
these times and as a result the
relationship will be stronger for
going through them together.
One additional item of note:
I encourage you to read the
article discussing the transition
to 4-year terms from 3-year terms
for Directors beginning in 2019.
The complexity and regulatory
expectations on Directors of
your association continues to
increase. Lengthening the Director
terms provides additional time
for Directors to understand an
increasingly complex environment
and its effect on the Association’s
operations. This change will impact
the next three Director election
cycles and understanding the basis
for the change and the process is
important.
Thanks for your support and
choosing FCS Financial for your
agricultural financing needs.
Best regards,