Miss America Advocates for Farmers

Miss America Advocates for Farmers

Miss America Advocates for Farmers

August 2011 Miss America Advocates for Farmers Doctors in Agriculture Al Bellotto, Sr., Recognized by SWFWD Visionary of Disneyesque Proportions

Miss America Advocates for Farmers

Leader is published quarterly for stockholders, directors and friends of Farm Credit of Central Florida. President Reginald T. Holt BOARD OF DIRECTORS Al Bellotto, Chairman David J. Stanford, Vice Chairman C. Dennis Carlton L. Baylis Carnes III W. Rex Clonts, Jr. Homer E. Hunnicutt, Jr. John S. Langford Robert R. Roberson Lewis S. Stidham Ronald R. Wetherington EDITOR Ron O’Connor, Director of Marketing & Governmental Affairs PUblisher AgFirst Farm Credit Bank PUblishing director Donna Camacho designers Athina Eargle Darren Hill Amanda Simpson Travis Taylor PRINTER Spectra True Colour Circulation Kathi DeFlorio Address changes, questions, comments or requests for copies of our financial reports should be directed to Farm Credit of Central Florida by writing P.O. Box 8009, Lakeland, FL 33802-8009 or calling 863-682-4117. Our quarterly financial report can also be obtained on our Web site: www.FarmCreditCFL.com Features 8 16 18 Dr. Luis Garda (left) and Farm Credit of Central Florida Apopka Loan Officer, David McDonald (right) at the Tropical Plant Industry Expo (TPIE).

The John Arnold, Jr. Family

Miss America Advocates for Farmers

Table of Contents August 2011 | 3 INDUSTRY NEWS The Spring Air is Always Full of Hope Back Home in Gering, Nebraska­ —Miss America 4 Understanding Diseases on your Turf and Ornamentals 5 Scenes from the Florida Citrus Industry Conference 17 Scenes from the Florida Nursery Growers and Landscape Association Convention 20 Former Farm Credit Director Wins Award at Citrus Conference 24 Fred Dietrich Wins Farm Credit/FCA Award at Cattlemen’s Convention 24 Jennifer Parrish Wins Farm Credit/FNGLA Young Nursery Professional Award 25 James M. Knox, Jr., Inducted into FNGLA Hall of Fame 25 Government and Agriculture: Partners in Progress 26 Scenes from the Florida Cattlemen’s Convention 27 Scenes from the Polk County Cattlemen’s Association Ranch Rodeo 28 Central Florida Nurseries Recognized by Greenhouse Grower Magazine 30 Spring Fever in the Garden 31 ASSOCIATION NEWS Employee Retirements—­ Bencinic & Roberts 6 Thomas Dalton Takes the Reins as Brooksville’s Loan Officer 6 Carrie Clinard Chosen to Represent Rotary 6 Honors Grad! 7 Baby News 7 Joy Register is a Graduate! 7 New Employees 7 Three Directors Re-Elected to Farm Credit of Central Florida Board 22 Farm Credit Supports Wedgworth Leadership Program 23 FEATURE Al Bellotto, Sr., Recognized by SWFWD 8 Doctors in Agriculture 14 Visionary of Disneyesque Proportions 18 FINANCIAL NEWS Temporary Tax Relief Provides Significant Planning Opportunities for Small Business Owners 10 Tax Notes 30 Farm Credit to Offer QuickBooks Seminar 31 Second Quarter 2011 Consolidated Financial Reports 31 MEMBER NEWS Farm Credit Members Inform Legislators about Agriculture 12 Congratulations to Farm Credit Members Re-Elected to Citrus Mutual Board 13 Congratulations to Quarterly Drawing Winners of a $100 Gift Card 13 Another Innovative Arnold 21 Birds of a Feather Hunt Together 29 Photo taken by John Langford at the Circle B Bar Reserve.

Miss America Advocates for Farmers

4 | August 2011 Farm Credit of Central Florida Industry News T his time of year, farmers plant seeds in hopes for Mother Nature’s cooperation and a successful har- vest. Ranchers help birth the next genera- tion of their herds and hope for fair market prices. And workers at the local sugar plant catch their breath after a busy winter and hope for a bumper crop this fall so they can do it all over again. The Miss America crown that I’m so honored to wear is a symbol of the hope and optimism that gets us through each day. But it also bears a responsibility to help people who have so little of those things—not just in the U.S., but abroad as well.

Unfortunately, there are far too many with far too little right now. Families con- tinue to battle a slow-moving economy here in America, wondering if they can give their children a chance at a better future while they struggle just to pay their monthly bills. Meanwhile, our friends overseas strug- gle to simply put food on the table after natu- ral disasters in other parts of the world have wreaked havoc on food supplies. While considering ways to help these circumstances, we end up right back on the farm, and those tiny seeds that farmers are currently planting suddenly seem to carry a lot more weight.

This year’s crop has the potential to be the most valuable in U.S. history, and that translates to more jobs and stimulus for our hurting economy. Further, the Federal Reserve recently credited agricultural production with helping lead the nation’s recession recovery, so whether we live in New York’s Manhattan or Manhattan, Kansas, we should all be rooting for a good growing season. Increased U.S. production would also help ease the political instability and tensions aided by food shortages in other parts of the world. U.S. Agriculture Secretary Tom Vilsack told Congress a few weeks ago that farming and ranching will take the crown in record exports this year if things go as planned. Of course, if years of involvement in theater and pageants have taught me any- thing, it’s that things rarely go as planned. U.S. producers will need more than a couple of good harvests to make a difference glob- ally because population is exploding—pre- dicted to grow by 2 billion people in the next 40 years—and U.S. farm output will need to expand substantially just to keep pace. Can we feed a growing world popula- tion, fuel our economy, and still offer whole- some food choices to Americans? Sure, just as long as we avoid weakening the very infrastructure that makes it all possible. As I write this, America has just 210,000 full-time farms. That’s it. And being from an agricultural community, I know these aren’t large corporations with giant bank accounts. These are small businesses with huge overhead expenses and a history of modest profits.

Farming and ranching is expensive, and the risks associated with it are unlike any other profession, which is why we’re faced with fewer and fewer U.S. producers to sup- port more and more people. Retired Army General Wesley Clark recently called these men and women a “thin green line standing between prosperity and disaster.” This line, he said, must be held and not weakened any further if America stands a chance to combat the challenges ahead of us. But, to do so will require a shift in thinking. Modern-day agriculture has to do its part in reaching out and teaching us about what they do and how they do it. Educational groups like The Hand That Feeds U.S. and the U.S. Cattlemen’s Association are a good start, but it’s not enough.

The rest of us must reconnect with our rural roots and understand that we all have a stake in the success of farmers and ranch- ers. Urban and rural America need to come together, and I plan to spend my time as Miss America to make that happen. After all, I was Miss Nebraska first. And if a small town girl from the Midwest can make it all the way to Miss America, maybe she can help bring America back to the Midwest. ■ The Spring Air is Always Full of Hope Back Home in Gering, Nebraska—Miss America If a small town girl from the Midwest can make it all the way to Miss America, maybe she can help bring America back to the Midwest.

Teresa Scanlan is Miss America 2011.

Miss America Advocates for Farmers

Farm Credit of Central Florida August 2011 | 5 Industry News T he summertime in Central Florida is generally hot and humid, making it the perfect weather for many dis- ease pathogens to cause a lot of damage to our turf and ornamentals. According to University of Florida research, there are generally three main factors that contribute to turf and ornamental disease outbreaks. They are the environment, the host plant, and the pathogen which causes the disease. Environmental conditions include the right temperature and moisture for pathogens to thrive. The host is a susceptible plant that will provide the food for that pathogen to live. When the environmental conditions are right and a suitable host is present for a particular pathogen, a “disease pyramid” is created allowing the pathogen to spring into action infecting our turf, ornamentals, fruits, and vegetables.

The three main types of pathogens include fungi, bacteria, and viruses. Fungi cause more turf and ornamental disease than any other pathogen. Fungi are simple organisms that obtain their food by breaking down plant material. Some fungi can be seen by the naked eye as mold, spores, or mildews. For example, if you’ve ever stepped on those brown “puff balls” when you were little, the brown “puff” you created was actually a multitude of fungal spores being released into the air. It is important to note that not all fungi cause diseases. In fact, most fungi exist naturally in our environment and are beneficial, if not crucial to our existence, acting as decomposers of organic matter in our environment. Bacteria are simple one-celled organ- isms that can only be seen with a micro- scope. Not all bacteria are pathogens, but the ones that are get their food from the plants they infect through natural open- ings or wounds and can be very difficult to control. Splashing water from overhead irrigation or rain water is one of the main ways bacteria are spread. Bacteria can also spread pruning an infected plant, then pruning a healthy plant with infected pruning shears Viruses are much smaller than fungi or bacteria and require a microscope to be seen. They cause more damage to food crops than ornamentals. Viruses depend on insects like aphids, thrips, or other vectors such as mites and nematodes to invade or feed on a host plant, thus transmitting the virus into that plant.

In general, using proper cultural practices to maintain a healthy plant is the best way to help prevent and manage disease outbreaks. Here are some tips from the University of Florida to help reduce pathogen problems: • Many pathogens are found naturally in the soil, so avoid irrigation that causes water to splash up from the soil. Try micro-irrigation as an alternative to overhead watering. • Avoid overnight watering of turf if possible. Irrigation combined with dew on turf keeps turf foliage wet for several hours, creating a good envi- ronment for disease development. Irrigate turf starting in the early morn- ing hours if possible.

• Put the “right plant in the right place”. This term refers to creating a land- scape that has Florida Friendly plants that are better adapted to your areas natural conditions. • Apply fertilizer at recommended rates. Over fertilization can increase insect and disease populations. • It can be difficult to identify the cause of unhealthy turf or ornamen- tals. Proper identification of a dis- ease is critical before treatment. If help is needed, refer to your County Extension Agent for assistance and recommendations. ■ All programs and related activities spon- sored for, or assisted by, the Institute of Food and Agricultural Sciences are open to all persons with non-discrimination with respect to race, creed, color, religion, age, disability, sex, sexual orientation, marital status, national origin, political opinions, or affiliations.

Understanding Diseases on your Turf and Ornamentals By Matt Lenhardt, UF/IFAS Citrus County Horticulture Extension Agent

Miss America Advocates for Farmers

6 | August 2011 Farm Credit of Central Florida Fa r m C r e d i t of C e nt r a l F lo r id a Commerical Credit A n a ly s t , C a r r ie Clinard, was chosen from entries around the Rotary District to have her image and bio used in ads pro- moting the civic club. Carrie is a member of the Lakeland Rotary Club and played a vital role in successfully starting the club’s latest fundraiser. Congratulations to Carrie! ■ Association News Master’s Degree. Financial Analyst. Studied in France. Rotary is 1.2 million ordinary men and women working together to accomplish extraordinary things. Rotary clubs are dedicated to fighting hunger and poverty around the world.

Learn more at rotary.org. Carrie Clinard is a third generation Rotarian and a member of Lakeland Rotary Club Carrie Clinard Chosen to Represent Rotary Michele Roberts retired on June 30, 2011 as Farm Credit of Central Florida’s Controller after 25 years of dedicated ser- vice. “Michele proved herself as a reliable and valuable employee and steadily moved up the Farm Credit ladder after joining the association as an Office Assistant,” said Reggie Holt, President and CEO of Farm Credit of Central Florida. ■ Farm Credit of Central Florida Executive Assistant, Kathleen Bencinic has decided to retire after more than 13 years of loyal and devoted service to the association. She began her career as the Receptionist and earned promotions to her current position through hard work and consistently supe- rior work.

“Thirteen plus years ago I re-entered the workforce out of boredom. I was look- ing for something simple and easy to fill my time after retiring from collecting real estate and wage taxes in Pennsylvania. Interviewing for a receptionist job at Farm Credit was one of the best decisions I could have made. I was hired in December of 1997 and soon found I was working with a very warm and friendly group of dedicated and caring people. I also found I was a little bored again just answering the phone so I began looking for more to fill my time. Over the years I acquired quite a number of responsibilities and was eventually pro- moted to Administrative Assistant and then Executive Assistant. Through the years I have assisted the administrative, auditing, marketing and special assets departments. I have been fortunate to have worked with some very special and exceptional people in each of those departments. I feel truly blessed to be a part of the Farm Credit Family,” Kathleen said. ■ Employee Retirements Michele Roberts Retires After 25 Years of Service Kathleen Bencinic Retires After More Than 13 Years of Service Thomas Dalton, a Farm Credit of Central Florida Credit Analyst since 2007, has been named Commercial Loan Officer/Assistant Vice President in the Brooksville Service Center. “I enjoyed my time as a credit ana- lyst, but relish the opportunity to interact on a personal level with our Customers. The experience I gained in my previous position will allow me to better understand how to expedite the underwriting process and help Members receive their loan pro- ceeds faster. I can help them in submitting their financial information in a concise manner which will greatly expedite the loan process,” Thomas said. Thomas is married to Maggie and the couple has two children, Kristine, 4 and Michael 3. He is a native Floridian, born in Eustis, and served our country in the U.S. Navy from 1992-1998. He earned his B.A. degree from the University of South Florida in 2002 in Management with a Minor in Economics, and his MBA in 2004. In his spare time Thomas enjoys golf and fishing. Thomas can be reached at (352) 544- 5553, or E-Mail TDalton@FarmCreditCFL. com. The Brooksville service center is located at 31081 Cortez Blvd. in Brooksville, Florida 34602. ■ Thomas Dalton Takes the Reins as Brooksville’s Loan Officer Jillian Green (Left), daughter of Andrea, & step daughter of Ron O’Connor is congratulated by Dr. Deborah German (Right), Dean of the University of Central Florida’s College of Medicine after receiving her white coat, symbolizing acceptance into UCF’s Medical School. Jillian graduated with high honors with a degree in biology from the University of Florida.

Miss America Advocates for Farmers

Farm Credit of Central Florida August 2011 | 7 New Employees Judy Waters Jeremy Williams Grant Handley Annie Sullivan Alvaro Puyo J osey Marie Brown, the daughter of Rick and Bryna Brown, has achieved the first major milestone in her life, her High School Graduation. She gradu- ated from Lakeland’s Tenoroc Senior High School on June 7, 2011. She graduated in the top 20 of her class with National Honor Society, Science, and Student Government Association cords. In addition, she was a Silver Garland nominee in the science category. She has participated in the dual enrollment program with Polk State College and was a cheerleader at Tenoroc Senior High and is now the Student Government Association vice president there. Josey has plans to further her education at The University of Southern Mississippi and become a trauma nurse to help those in need. Josey has made her parents and all of us at Farm Credit extremely proud of her by her successes and the dreams she has for her future.

Rick Brown is the Collateral Evaluator for Farm Credit of Central Florida. ■ Honors Grad! Congratulations to all of our new parents! Baby News Jay and Jessica Slaughter are pleased to announce the arrival of their newest family addition, James Liam Slaughter on March 24, 2011 at 11:43 p.m. He weighed 3 lbs 14 oz. Michael and Brittany Lopez welcomed their little bundle of joy, Gracie Lynn Lopez into the world on April 20, 2011. She weighed 6lbs, 13 oz. and measured 20.25 inches. J oy Register received her AA degree from Pasco Hernando Community College and Graduated with honors on May 4, 2011. “Thank You!!! To my family for your encouragement and for being so supportive while I was working toward my degree, with many late nights and week- ends studying, along with working full time didn’t leave much time for anything else. I always loved getting the call from my par- ents to stop by their house to pickup dinner. There were many times I thought I just don’t have the time for this, but I managed to make it through,” said the new graduate. Congratulations, Joy! ■ Joy Register is a Graduate!

Miss America Advocates for Farmers

8 | August 2011 Farm Credit of Central Florida Feature T he Polk County Cattlemen’s Association and the Southwest Florida Water Management District (SWFWMD) recently recognized Farm Credit of Central Florida’s Chairman of the Board, Al Bellotto, Sr., for his long time support of conservation. Bellotto, a Polk County cattleman, and citrus grower, sold part of his Circle B Bar Ranch in 2000 to Polk County and SWFWMD. Today the property is a haven for wildlife enthusiasts and is known as the Circle B Bar Reserve. The property includes 1,275 acres on Lake Hancock and is home to a plethora of wildlife including, alligators, wading birds, eagles, and otters. “Agriculture and conservation go hand in hand. The land is the most valuable asset a rancher or grower has and to spoil it in any way would be foolish,” Bellotto said. Bellotto, a World War II veteran, has been involved in agriculture most of his life. “I began with one cow I bought from my Dad with money I earned working in a local nursery on weekends. With the expanding population of Polk County and our country in general, things have changed dramatically. I can remember driving cattle down US 27 and the Highway Patrol would stop traffic until we got by,” Bellotto said. His motto is, “You can be a cowboy, but you still have to go to town.” He is alluding to the need to be involved in the political process and to be unafraid of assuming a leadership role, sacrificing per- sonal goals and time for the greater good, in various agricultural organizations. Bellotto has certainly adhered to his motto. He is past President of the Florida Cattlemen’s Association; the Polk County Cattlemen’s Al Bellotto, Sr., Recognized by SWFWD (From the left) Grandson Al Bellotto III, known as Trey, Daughter-in-Law, Chanel Bellotto, Daughter, Chere Campbell, and wife, Betty (Right), enjoy the natural beauty of the Circle B Bar with Al Bellotto, Sr. (second from right).

(From the left) Charles Cook, President of the Polk County Cattlemen’s Association and Albert Joerger, a member of the SWFWMD’s District Governing Board congratulate, Al Bellotto, Sr. (center) on his recognition.

Miss America Advocates for Farmers

Farm Credit of Central Florida August 2011 | 9 “Agriculture and conservation go hand in hand. The land is the most valuable asset a rancher or grower has and to spoil it in any way would be foolish,” Association and has twice chaired the Florida Beef Council board. He served as chairman and director on the board of AgFirst Farm Credit Bank and is still Chairman of the Farm Credit of Central Florida Board of Directors. He was President and a Director of the Polk County Farm Bureau Board, a Director of the Citrus Showcase Board and a trustee of the Florida Agricultural Museum. He also served as Vice President of the Farm Credit Funding Corporation Board.

He is known as a pioneer in the cattle industry having been an early adopter of freeze branding and invented the double- decker cattle trailer to maximize capacity in transporting cattle, while reducing traf- fic on our roads. All of these achievements pale in comparison to his leadership in garnering support for the Beef Checkoff Program. The initiative had failed twice previously, but Bellotto, seeing the benefit to using the money to promote beef, trav- eled the state tirelessly to convince his peers to approve the measure. It passed and today generates the necessary funds to promote Florida’s vital beef industry. “The District’s Basin Board Land resources Committee wanted to recog- nize Al Bellotto for supporting land pres- ervation,” said Albert Joerger, District Governing Board member. “Thanks to his support, the Circle B Bar Reserve is an important environmental asset that serves as a popular recreation area for the residents of Polk County, and it will be preserved and protected for future generations.” John Langford, a Farm Credit of Central Florida Director and a connois- seur of natural beauty, addressed the SWFWD Board at the ceremony to honor Mr. Bellotto. Here are his comments on Al Bellotto’s award.

“I want to thank the SWFWMD Board for allowing me a few sentences before you today. My good friend Al Bellotto offered me the opportunity to thank all of you publicly for developing his treasure into the park that it is today. Al told me that he made numer- ous trips to New York City to serve on the Funding Board for the Farm Credit System. While there, he visited Central Park and was struck by the beauty and accessibility of it. That urban masterpiece inspired Al to imagine that his Circle B Bar Ranch, this magnificent collection of ecosystems and wildlife, could serve similarly the rapidly urbanizing Polk County. Within a few min- utes drive of the main population centers of the County now lies this park. Al tells me that it was a tough thing to convince every- one of his vision, but through the determina- tion and perseverance that Al is known for, he got his point across, he said.” “My wife, Mary K, and I come here about once a week. I have taken thousands of photos of dozens and dozens of species of birds, otters, pigs, snakes and turtles,” John said.

“We meet other photo enthusiasts, families on bikes, couples with binoculars, and school children on field trips. All come here to see the truly phenomenal mix of wildlife, and experience the serenity of this piece of old Florida,” Langford observed.. “We have traveled over five continents photographing wildlife. No place is better than the Circle B Bar for variety, consis- tency and surprise. We read a recent Ledger article that says people have come here from as far away as Australia specifically to see what’s here,” he said. “Thanks to the SWFWMD Board and to Polk County for developing and manag- ing this marvelous resource. Most of all, thanks to you Al, to you and your family for having the foresight and the generos- ity to part with your beloved ranch so that my family and all families could enjoy its unique features,” Mr. Langford said. The buildings comprising Polk’s Nature Discovery Center are open Tuesday through Saturday from 9 a.m. until 4 p.m., but the nature trails are open from dawn to dusk. For more information on the Circle B Bar call (863) 668-4673 Ext. 203. John Langford agreed to share some of his most impressive photography, all taken at the Circle B Bar Reserve. At the right are some of the stunning photos captured by John Langford’s keen eye and are repre- sentative of the diversity of wildlife at the Circle B Bar. ■

Miss America Advocates for Farmers

10 | August 2011 Farm Credit of Central Florida Financial News J ust when it looked like a return to the tax laws in effect prior to the enactment of the so-called “Bush Tax Cuts” was inevitable (see Back to the Future for Estate Tax Planning, Farm Credit Leader, December 2010, at 14-15), Congress and the President gave taxpayers an early Christmas present. On December 17, 2010, President Obama signed into law the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 (the “2010 Act”), which extends the benefits of the Bush Tax Cuts through 2012 and provides significant estate planning opportunities for owners of family busi- nesses (especially those in agriculture). These opportunities, however, are only available for a short time because the pro- visions of the 2010 Act are set to expire on December 31, 2012, at which time the tax laws in effect prior to the Bush Tax Cuts will be resurrected (absent further action by Congress). This article describes the more significant tax changes effected or contin- ued by the 2010 Act and briefly discusses some of the ways in which small businesses can take advantage of these changes. Extension of 2010 Tax Rates. The 2010 Act extends the lower income tax rates (10%, 15%, 25%, 28%, 33% and 35%), capi- tal gains tax rates (maximum of 15%), and qualified dividend tax rates (maximum of 15%) through 2012.

Transfer Tax Provisions. The 2010 Act provides for a combined $5 million exemption from gift and estate tax, and provides a $5 million exemption that can be allocated to generation-skipping transfers (transfers made during life or at death that are to or for the benefit of a person more than one generation below the generation of the donor). Additionally, the 2010 Act reduces the tax rate applicable to transfers in excess of the $5 million exemption to 35%. The 2010 Act also introduces a new planning opportunity referred to as “por- tability.” Portability allows the personal representative of a deceased spouse’s estate to make an election on a timely filed federal estate tax return to transfer the deceased spouse’s unused estate tax exemption to the surviving spouse. The surviving spouse can then use the unused exemption of the deceased spouse to make additional gifts during life or at death that are exempt from gift or estate tax. The deceased spouse’s exemption from generation-skipping trans- fer tax, however, is not portable. Without further action by Congress, the 2010 Act will sunset and the exemp- tions and rates in effect prior to the Bush Tax Cuts will again become effective on January 1, 2013. This means that the gift and estate tax exemptions will revert to only $1 million, the generation-skipping transfer tax exemption will decrease to $1 million, but will be indexed for inflation since 1997, and the maximum tax rates will increase to 55%.

Bonus Depreciation. Under the 2010 Act, bonus depreciation was increased from 50% to 100% for qualifying assets placed in service between September 9, 2010 and December 31, 2011. Qualifying property generally includes property eli- gible for depreciation with an applicable recovery period of 20 years or less, com- puter software covered by Section 197, and qualified leasehold improvement property. For qualifying property placed in service during 2012, the 50% depreciation rules will again apply. Energy Incentive Credits. The 2010 Act extended a number of energy incentive credits for businesses, including credits for biodiesel and renewable diesel fuel, cred- its for refined coal facilities, new energy efficient home credit, excise tax credits/ outlay payments for alternative fuel and fuel mixtures, and grants for certain energy property in lieu of tax credits. Payroll Tax Holiday. In 2011, employees would have been required to pay a social security tax of 6.2% of their wages up to $106,800 and a Medicare tax of 1.45% on an unlimited amount of tax- able earnings. The employer is required to pay a matching amount. Under the 2010 Act, the employee (not employer) portion of the social security tax is temporarily reduced from 6.2% to 4.2% for 2011 only. Individuals subject to the self-employment tax will also receive the 2% tax reduction (their rate will be a combined 13.3% instead of 15.3%).

Increase of Section 179 Expensing and Expansion to Certain Real Property. The tax changes effected by the 2010 Act are in addition to those enacted in the By Richard I. Withers, Esq.; Robert J. Naberhaus, Esq.; and Michael D. Minton, Esq. Temporary Tax Relief Provides Significant Planning Opportunities for Small Business Owners

Farm Credit of Central Florida August 2011 | 11 About the Authors: Michael D. Minton is president and a shareholder of Dean Mead. He practices in the area of Federal income, estate, and gift tax law and fa m i ly bu si ne s s succession planning. In addition, he has developed a particular interest and special knowledge in agricultural and resource management law. Mr. Minton is the Past Vice Chairman of the Governing Board for the South Florida Water Management District. He may be reached at mminton@ deanmead.com.

Robert J. Naberhaus III is Of Counsel at Dean Mead where he practices in trust and estate planning and administration. He is board certified in wills, trusts and estates law. Mr. Naberhaus also concen- trates his practice in the areas of fiduciary representation, business succession plan- ning, generational planning, charitable planning, guardianship and probate litiga- tion. He may be reached at RNaberhaus@ deanmead.com. Richard I. Withers is an Associate at Dean Mead. He practices in the area of estate plan- ning, business succes- sion planning, probate and trust administra- tion and tax planning for businesses and individuals. He may be reached at rwithers@deanmead.com. Small Business Jobs Act of 2010, which was signed into law on September 27, 2010 (the “2010 Small Business Act”). Under the 2010 Small Business Act, for taxable years beginning in 2010 and 2011, taxpayers may write off up to $500,000 of the cost of qual- ifying property placed in service during those taxable years, subject to a phase-out once these expenditures exceed $2 million. Additionally, the definition of qualifying property was expanded so that taxpayers may expense up to $250,000 of the cost of qualified leasehold improvement property, qualified restaurant property, and quali- fied retail improvement property placed in service during 2010 and 2011. The 2010 Act also extends Section 179 expensing for 2012, but reduced the deduction limita- tion to $125,000 of the cost of qualifying property placed in service during 2012, subject to a phase out once the expenditures exceed $500,000. In 2013, the Section 179 expensing limitations will revert back to a $25,000 maximum deduction with a phase- out beginning at $200,000.

Opportunities. The 2010 Act has ushered in a new era of tax planning opportunities for small business owners that are positioned to take advantage of the temporary tax relief provisions in the next two years. Business owners should consider ways to accelerate the recognition of income, capital gains and dividends, where possible, before the tax rates increase in 2013. Additionally, busi- ness owners who have been holding off on purchasing qualifying property should consider making those capital expenditures in the next two years and taking advantage of the opportunity to fully depreciate or expense those costs in the year of purchase. Furthermore, business owners considering making investments in energy production should consider how they might structure those investments to take advantage of the myriad energy incentive credits that have been extended through 2012.

Probably the greatest opportunities can be found in the increased exemptions and reduced rates provided with respect to the gift, estate and generation-skipping transfer taxes. The increased gift and estate tax exemption gives family business owners a unique opportunity to make sig- nificant transfers either outright or in trust to subsequent generations without incur- ring any transfer tax. As discussed above, single individuals can transfer up to $5 million in assets and married couples can transfer up to $10 million in assets without incurring gift or estate tax. Additionally, if such transfers are made to trusts, then generation-skipping transfer tax exemp- tion can be allocated to the transfers and the trust can survive exempt from transfer tax for up to 360 years.

Furthermore, the increased exemp- tions and reduced rates can be coupled with other estate planning techniques to further minimize the transfer tax liability of family business owners. For example, a decedent’s estate may elect to value real property used in farming operations or other closely-held small businesses at its special use valua- tion (rather than at its highest and best use value). Providing that a farming or closely-held small business qualifies, this election allows for a reduction in the valu- ation of qualified real property included in the decedent’s gross estate by a maximum amount of $1,020,000 for 2011 (indexed annually for inflation). Additionally, qual- ifying small business owners may take advantage of valuation discounts (e.g. dis- counts for lack of control and lack of mar- ketability) when transferring interests in their business either during life or at death. Such discounts can result in the transfer of a family business at values greatly reduced from the value of the underlying assets of the business. As an added benefit, recent case law and Private Letter Rulings show that the special use valuation is calculated after considering any applicable valua- tion discounts. This allows for layering of discounts and deductions by first taking into account valuation discounts and then further reducing the value of the estate by any reduction attributable to a special use valuation. A properly structured estate and business plan that takes advantage of the 2010 Act, and the other planning techniques described above, can achieve the transfer of a family business with a value in excess of $20 million to subsequent generations with little, if any, estate, gift or generation- skipping transfer tax.

The window of opportunity to take advantage of these planning techniques and the increased exemptions is only two (2) years, so it would be prudent to review your current estate and tax plans now with a qualified estate and tax attorney or accountant. ■

12 | August 2011 Farm Credit of Central Florida Member News Farm Credit and Florida agriculture have been partners in progress for almost a century. Now, more than ever, it is critical to explain to our mostly urban legislators at every level, about agriculture and its needs. Farm Credit of Central Florida can be proud of the high level of involvement its Members have with elected officials from local to national. Here are some photos to illustrate their travels. ■ Farm Credit Members Inform Legislators about Agriculture (From the left) Farm Credit of Central Florida Member, Jerry Shoop, State Senator Jim Norman, Billy Kempfer, State Representative Greg Steube (From the left) Cary Lightsey, Representative Joe Gibbons, Farm Credit of Central Florida Member, Herb Harbin (From the left) Past Florida Cattlemen’s President Mike Milicevic; Florida Senate Ag Committee Chairman, Gary Siplin; Past FCA President, Wade Grigsby; Dr. Geoffrey Dahl, IFAS (From the left) Farm Credit of Central Florida President & CEO, Reggie Holt; Director Rex Clonts, Jr.; Senator Bill Nelson; and Board Vice Chairman, David Stanford (From the left) Sumter County Ag Alliance Chairman, James Sutton; Ed Dillard; Congressman Rich Nugent; and Farm Credit Member, Dale McClellan Farm Credit of Central Florida President & CEO, Reggie Holt (left) and Director Homer Hunnicutt, Jr. (right) present a PAC check to Congressman Rich Nugent (center).

Farm Credit of Central Florida August 2011 | 13 Farm Credit of Central Florida Director, W. Rex Clonts, Jr. along with fellow Farm Credit Members, David Evans , Oviedo, George Neukom, III of Zephyrhills, Richard “Ric” Freeman of Winter Garden, Raymond “Bo” Bentley, Jr. of Winter Haven, and Victor Story, Jr. of Lake Wales were re-elected to the Citrus Mutual board for the 2011-2012 season. ■ Congratulations to Farm Credit Members Re-Elected to Citrus Mutual Board Congressman Ross (center) at the association’s Lakeland office receiving a Farm Credit PAC check. (From the left) Farm Credit of Central Florida Directors, Baylis Carnes III; John Langford; Al Bellotto; Ron Wetherington; Dennis Carlton; and CEO, Reggie Holt (From the left) UF-IFAS Vice President, Jack Payne; Brevard County cattleman, Billy Kempfer; State Senator, Thad Altman of Melbourne; and Brevard County Commissioner, Robin Fisher (From the left) Florida Commissioner of Agriculture, Adam Putnam; Farm Credit of Central Florida President & CEO, Reggie Holt; Congressman Dennis Ross; State Representative, Rich Glorioso of Plant City; and State Representative Seth McKeel of Lakeland Rex Clonts, Jr.

K udos to Frank Drury of DeLand, and Terrence Schrader of San Antonio, Fla. for having their names drawn as the past two winners of a $100 gift card from the associa- tion. Farm Credit of Central Florida Customers receive a survey following loan closings. Each quarter a drawing is held from the completed surveys to determine the winner. It pays to participate! ■ Congratulations to Quarterly Drawing Winners of a $100 Gift Card This customer satisfaction survey is provided to help us better meet the needs of our customers. Your input is very important to us. Please return this survey using the enclosed envelope so that we can better evaluate and improve our services.

You can also respond electronically to this survey at www.FarmCreditCFL.com/customersurvey.htm Customer Satisfaction Survey 1. Are you a new, existing or previous Farm Credit customer? ❑ new ❑ existing ❑ previous 2. How did you hear about Farm Credit? ❑ Farm Credit Member ❑ Internet ❑ Farm Credit Employee ❑ Farm Credit Director ❑ Farm Credit Meeting ❑ Realtor ❑ Newspaper ❑ Magazine ❑ Other 3. How would you rate the Farm Credit employees you dealt with in terms of knowledge about our products and service to you?

Loan Officers: ❑ Above Avg. ❑ Average ❑ Below Avg. ❑ N/A Loan Assistant/Analyst: ❑ Above Avg. ❑ Average ❑ Below Avg. ❑ N/A Receptionist: ❑ Above Avg. ❑ Average ❑ Below Avg. ❑ N/A 4. Was your loan officer prompt in dealing with your requests or concerns? ❑ Yes ❑ No Comments _ _ _ _ _ _ 5. Your loan closed: ❑ Sooner than expected ❑ When expected ❑ Later than expected Comments _ _ _ _ _ _ _ _ 6. Did your loan officer discuss Farm Credit’s crop insurance and AccountAccess programs with you? ❑ Crop Insurance ❑ AccountAccess ❑ N/A 7. What was your main reason for choosing Farm Credit? ❑ Rate ❑ Loan product selection ❑ Easy/quick application process ❑ Confidence in originator ❑ Existing member ❑ Referral recommendation ❑ Other 8. Will you recommend Farm Credit to others? ❑ Yes ❑ No If no, please explain _ _ _ _ _ _ _ _ 9. Do you have any comments or suggestions to improve our services _ _ _ _ _ _ _ _ _ _ 10. Do you know of someone in need of financing at this time?

❑ Yes ❑ No If yes, please provide name and phone number _ _ _ _ _ _ Loan Officer’s Name (optional _ _ Your Name (optional _ _ Your email address (optional _ _ _ _ Thank you for helping us improve our services to you. We appreciate your cooperation and your business.

14 | August 2011 Farm Credit of Central Florida Dr. Faisal Fakih Farm Credit of Central Florida Member, Dr. Faisal Fakih, is an accomplished phy- sician who is the Medical Director for Florida Pulmonary Consultants and Sleep Disorder Center in Winter Park. Inspired by his friend and fellow physician, Dr. John Arnold, Dr. Fakih bought a frozen out grove near Groveland, Florida, in 1993. He immediately began to apply his healing touch to restoring the grove to a productive and profitable operation. He also acquired an adjacent parcel of land to expand his holdings to the current 120 acres. Dr. Fakih was introduced to agricul- ture at an early age by his parents. His father was born in a tiny village in Lebanon where his family grew food for their own needs and sold the remainder of their crop. The family moved to Barranquilla, Colombia, in Central America, where Dr. Fakih was born, and where his father often told him stories of the family farm in Lebanon. Dr. Fakih earned his B.A. from the Universidad de Zaragoza in Spain, and then served his residency and fellowship at Tulane University in New Orleans. He moved to central Florida in 1979 and has never left. He sees parallels between medicine and raising citrus, “Taking care of trees is like treating patients in as much as both need certain nutrients, and you have to fight diseases.” Dr. Fakih firmly believes good planning and proper treatment is essential to grow a healthy and productive grove. “If you skimp on caretaking of your grove it will eventually cost you,” he said. Just as a doctor would consult medi- cal journals to cure an illness in a patient, Dr. Fakih read voraciously and gathered volumes of knowledge on the citrus industry before investing in his grove. He has even pioneered a creative method to help his trees survive some very harsh winters, escaping even sub-freezing tem- peratures for hours. “We have found the tall stand of red cedar trees lining my grove help protect our citrus trees from freezes,” said Dr. Fakih. Additionally, he has cleverly employed extended microjet irrigation to protect the trees’ canopies during freezing temperatures.

“Dr. Fakih, has been a Farm Credit Member for approximately six years and he is a pleasure to work with,” said David McDonald, Dr. Fakih’s Loan Officer. Dr. Fakih move to central Florida in 1979. “My realtors, Julia Faye Rogers and Elaine Vick, recommended Farm Credit of Central Florida for financing,” he said. Julia Fay Rogers, owner of Julia Faye Rogers Realty, Inc., had this to say about rec- ommending Farm Credit of Central Florida to her clients: “I have used Farm Credit in the past and have never hesitated in recom- mending them to any of my customers and friends. They have excellent programs, competitive rates and their stock/participa- tion program is an extra bonus. Most impor- tant is the knowledge and desire of the staff to help each individual in their specific needs and following tit through to the end. I cannot say enough “good things” about Farm Credit and was most happy, together with my right-hand associate Elaine Vick, to recommend it to Dr. Faisal Fakih.” As a man who earns his living in a very stressful environment making daily life and death decisions, Dr. Fakih finds working in his grove relaxing and often invites friends out to his property to unwind. He is also a man with a positive outlook. “History has shown agriculture will find a way to survive. I believe even- tually a cure for the various citrus diseases will be found,” he said.

Doctors in Agriculture Dr. Faisal Fakih “Taking care of trees is like treating patients in as much as both need certain nutrients, and you have to fight diseases.” Feature

Farm Credit of Central Florida August 2011 | 15 Dr. John Arnold, a Lifelong Pioneer As they say in the citrus industry, “The Valencia doesn’t fall far from the tree!” In other articles, we outline the innovative genius of John Arnold, Jr., and his brother, Rob. Interviewing their dad, Dr. John Arnold, a retired interventional cardiolo- gist, it is clearly evident where John, Jr., and Rob got their inspiration and knack for innovation. Dr. John Arnold was born in Winter Garden, obtained his B.A. from Emory University in Atlanta, GA. Subsequently, he graduated from Emory University School of Medicine, served a three-year internship and residency at Grady Memorial Hospital in Atlanta, followed by a fellowship in clinical cardiology at Emory Hospital, then was senior fellow in cardiology at Jackson Memorial Hospital in Miami for training in the cardiac catheterization lab. The science of interventional cardiol- ogy allows heart patients to live normal, productive lives by installing pacemakers, stints, and cardiac catheters eventually leading to open heart surgery. The original mercury-zinc batteries that powered the pacemakers had a productive life of about two years necessitating additional surgi- cal procedures to replace the spent power source. Dr. Arnold had observed lithium- iodide batteries, that were used to light remote Pacific runways for our military planes in WWII lasted up to five times longer. “I appealed to the pacemaker man- ufacturers my discovery and encouraged them to use the longer lasting batteries,” Dr. Arnold said. He could have obtained a patent on his discovery, but rather than delay implementation of his innovation, he donated it to science so patients could benefit immediately. “I really didn’t have to think about it, I just believed it was the right thing to do, to help patients,” he said. That was just the first of his ground- breaking discoveries. Dr. Arnold designed and patented the Left Ventricular Assist device, or L-Vad, which replaced heart transplants. “It eliminated the rejection factor that often plagued transplant patients, and required no steroids. “Former Vice President Dick Cheney has one,” he said. Dr. Arnold practiced medicine for 41 years before retiring four and half years ago. He was on the staff of several local hospitals, but most of his work was at Florida Hospital in Orlando. “My dad was a dentist who grew up in a small farming community in Northern Kentucky. He tried various forms of agriculture as a hobby without success until he became involved in citrus. I helped him on the farm and it became a contagion, but it helped build my work ethic, which I have been able to pass on to my family,” he said. Dr. Arnold also sees similarities between nurturing his citrus trees and livestock to his career extending the lives of ailing patients. He has observed certain professionals entering the agricultural arena and then exiting because it doesn’t provide immediate gratification such as stocks, gold or other investments. “Citrus takes seven years to pay its way and as many as 10 years to really make a profit,” he said. Today, Dr. Arnold’s holdings include almost 3,000 acres of citrus and cattle land. “I built it all I myself, not one grain of sand was inherited,” he says proudly. “Good nutrition combined with early and accurate diagnosis prolong life. Agriculture has been my most satisfying hobby and has turned into an enterprise and bonding expe- rience for future generations,” he said. He used Farm Credit to purchase some of his holdings. There are currently no remaining mortgages on any of his properties. Dr. Arnold’s background in chemis- try combined with his research into the citrus industry led him and John, Jr., to create and patent an irrigation system with micro-jet emitters in 1990 that is still in use today for cold protection and irriga- tion. “Understanding the physical chemis- try of water was the key to inventing this system,” he said.

Like his good friend Dr. Fakih, Dr. Arnold and wife, Susan, still find visiting and participating in the rural setting of his citrus and cattle operation relaxing when they want to get away from urban living. Dr. John Arnold Continued on next page “Agriculture has been my most satisfying hobby and has turned into an enterprise and bonding experience for future generations.”

16 | August 2011 Farm Credit of Central Florida Feature Restoring People, Plants, and Automobiles Dr. Luis Guarda, born in Viña del Mar, Chile, and educated at the University of Chile at Valparaiso, has been involved in pathology and laboratory medicine for 29 of his 32-year career at Florida Hospital in Orlando. In the past he occupied the posi- tion of Head of the Pathology Department at Florida Hospital; currently, he is a senior pathologist. He is also Associate Professor of Pathology at the University of Central Florida Medical School. The respect he has garnered from his peers has resulted in sev- eral guest speaker invitations to scientific meetings in Latin-American.

Pathology is the study of the essential nature of diseases and especially of the structural and functional changes produced by them. He and his wife, Aurora, own and operate Tropical Plants and Foliage in Apopka which occupies about five of a 15-acre site. Aurora’s experienced eye developed as an interior design consultant is a critical asset in developing marketable material from the nursery. Dr. Guarda recognizes some similari- ties in raising quality plant material and the practice of medicine. “Nutrition, growth, and metabolic principles are similar in medicine and plants. When my son came back from serving in Iraq, we bought the nursery for a retirement investment, enter- tainment, and potentially as income pro- ducing property,” he said. His skills as a doctor have served him well in his nursery incorporating some of the same safety and handling procedures he learned in medicine for handling pesticides and fertilizers. His hospital schedule allows Dr. Guarda to be present at the nursery most afternoons and weekends. His wife, Aurora handles the invoicing and oversees the daily operations at the greenhouses. The nursery specializes in container tropical foliage and sells to customers, brokers, direct wholesal- ers and local flower shops.

The keen mind and manual dexter- ity that are prerequisites for Dr. Guarda to excel at his chosen profession also serve him well in pursuing his hobby of restor- ing classic Ford Model A automobiles from 1928, 1929, and 1930. “I was inspired from seeing a lot of those cars as a child in Chile. My aunt drove a 1928 Ford Model A,” Dr. Guarda said. Dr. Guarda and Mrs. Guarda have two children and four grandchildren, ranging in ages from one to 15 years. ■ Dr. Luis Garda Dr. Luis Garda with his restored Model A Ford “Nutrition, growth, and metabolic principles are similar in medicine and plants.”

Farm Credit of Central Florida August 2011 | 17 Florida Citrus Industry Conference • June 15–17 • Bonita Springs, FL Industry News

18 | August 2011 Farm Credit of Central Florida Feature L ocated, virtually in the shadow of the House of the Mouse, 15 min- utes West on U.S. Highway 27, the Showcase of Citrus appears to passersby to be a typical roadside citrus stand. Au con- traire, my friend! Owned by John Arnold, Jr., you can certainly purchase the luscious traditional citrus products Florida is known for, but the Showcase of Citrus offers an interactive, one-stop entertainment venue for kids from 3-103, for a fraction of the cost of feeding the Mouse!

The 40-acre, U-Pick grove offers some 50 varieties for guests to choose from as they select and pick their own fruit. In the shop itself, summer visitors can refresh with a tonsil-tingling orange juice slushy, enjoy fresh squeezed orange or grapefruit juice, or pour their own raw local varieties of honey on tap in huge drums. If ice cream is your passion the staff can hand-dip your choice or you can choose one of their sev- eral kinds of sherbet. During season they also have citrus breads and baked goods. For the more adventurous, the Showcase of Citrus also offers one-hour safaris across the 2,500-acre ranch on the World’s Largest Monster Trucks. Riding in converted school buses, up to 60 guests can climb the 12-foot staircase to a ringside seat to take in the natural beauty of the Arnold family’s ranch and wildlife including a pair of water buffalo. John’s future vision for the Showcase includes an alligator pit with regular feedings and a chance to see these giant reptiles as close as most want to get. John, wife, Julie, and their four sons work hand-in-hand as a team to operate the multi-faceted facility. Each brings a special talent to the table—Josh, 14, Jason, 13, Jackson, 8, and John Forrest, 7. The boys perform duties ranging from cutting fruit samples, carrying fruit to customer’s cars, to grove care and prepping the tour buses. Their business plan is to create a compre- hensive, 1-stop-shopping entertainment and retail venue.

The Arnold’s agricultural operation includes 250 acres of citrus groves for the juice market; the fruit stand, U-Pick, and Recently Picked grove operation; and Agri- Tourism offering regularly scheduled edu- cational tours of the ranch on two “Monster Swamp Buggys,” which are modified school bus bodies mounted on soft, giant tires. To that end, the family embarked upon a two-month, 21-state, sojourn last summer, to find the best possible values in artisanal- produced products for their retail operation and compare operational strategies. They visited 11 national parks and even climbed Mt. Whitney. Famed comedian, Larry the Cable Guy, even filmed a hog hunt on the Arnold’s ranch for his History Channel show, “Only in America.” Martha Stewart’s mention of the Showcase of Citrus started Visionary of Disneyesque Proportions The Arnold Family—(from the left) Julie; sons, Jason, Jackson, John Forrest, and Josh; and Dad, John, Jr., at Showcase of Citrus on Highway 27 near Clermont.

Farm Credit of Central Florida August 2011 | 19 Industry News an avalanche of phone calls, so the Arnold’s fame has spread nationwide. A 1986 graduate of Emory University, John, once had former President Jimmy Carter as an adjunct professor in one of his classes. During his college days he began to visualize a retail store with a direct to retail relationship between producer and cus- tomer. The store offers a plethora of prod- ucts, most of which are homemade. “The retail store furnishes a platform to bring the public Florida-produced artisanal, small batch products, with absolutely no artifi- cial ingredients,” John said. John and his family have traveled extensively to seek out the tastiest products they can find including a wide variety of jellies, marmalades, and sauces to stock their store shelves. Farm Credit of Central Florida Apopka Loan Officer Clay Wiggins said, “John and Julie truly have a passion and commitment to Florida agriculture. Their innovative business model bringing agri- culture and tourism together to educate others about the benefits and importance of Florida’s second-largest industry is not only refreshing, but vital to the overall economy of our state. It’s truly a pleasure to work with the Arnold family and be a part of the success of the Showcase of Citrus.” Bio-Solids and Composting John’s innovation and vision is not lim- ited to the retail store. He is currently working on a significant project unrelated to the retail store, but with the possibil- ity of adding additional revenue streams and solving some pressing environmental challenges for the disposal of wastewa- ter and the residual solids. When fully operational, a BTF (Biosolids Treatment Facility) will be an integral part of the farming operation. The project will clarify and recycle wastewater for citrus irriga- tion, reducing the need to pump irrigation water for the citrus from either the aquifer, or surface water.

The BTF plant will also produce a bio-solids based, registered fertilizer with the USDA displacing dependence on commercially produced synthetic fertil- izers. Since 1986, the ranch has accepted wastewater residuals from various munici- palities in central Florida including the City of Orlando. John has a patent pending on a solar process to convert the residuals from the wastewater into a product similar to Milorganite, which is produced from the sewage of the City of Milwaukee, WI. That company is called Solorganics LLC and produces activated sewage sludge. By drying the bio-solid using solar heat instead of burning fossil fuels to generate heat cre- ates a tremendous energy savings that can be passed on to the farmer.

Once dry the sludge is brought up to 170 degrees without any external heat source to stimulate microbial activity and end up with an AA rated fertilizer product with 6%-10% Nitrogen content. Additionally, the cities supplying the sludge pay a tipping fee to Solorganics creating another revenue stream to maintain the viability of the agricultural operation. An offshoot of the BTF is the ability to eventually accept shipments of expired food wastes from retail food stores that will be processed into ethanol. Once again, a huge challenge is turned into a potentially lucrative revenue stream from a product retailers will pay to dispose of. Having been a Farm Credit Member for years, John had this to say about his relationship with the cooperative,” Farm Credit, unlike commercial banks, under- stands the complexities of my operation. Farm Credit comes to visit me and see my operation firsthand. The commercial banks can’t beat their rates and the staff seems to have similar backgrounds to mine.” ■ The Arnold family on the Swamp Safari vehicle which is a converted school bus requiring a 12-foot ladder to board!

(From the left) John Arnold, Jr., his wife, Julie, and Farm Credit of Central Florida Apopka Loan Officer, Clay Wiggins

20 | August 2011 Farm Credit of Central Florida Florida Nursery Growers and Landscape Association Convention • June 23–26 • Naples, FL Industry News

Farm Credit of Central Florida August 2011 | 21 Member News “Innovation is the process of turning ideas into manufacturable and marketable form,” said Watts Humphrey, an IBM software engineer known as “the father of software quality.” Rob Arnold, a native Floridian, and the younger brother of John, and son of Dr. Arnold, also got the cre- ative gene that seems to be inherent in the Arnold family. As he watched a mosquito spray truck killing the pesky little pests he noted how the unit mounted on the back of the truck released a blanket of mist and thought about how he could adapt that to the citrus industry.

Rob Arnold, also a graduate of Emory University in Atlanta, is the owner of the aptly named, Pioneer Ag Equipment LLC, specializing in low volume sprayers for the agriculture industry. With the advent of greening and the need to control the psyl- lids that spread the disease, Rob set out to create a sprayer that was mobile, efficient and could provide faster more accurate application of sprays to control the vector. “The LV-8 sprayer emits a smaller, more concentrated droplet, which creates a more concentrated application of the active ingredient you are spraying. It is similar to aerial spraying, but with far better inter- nal canopy penetration. Because of the concentrated spray, the cost of chemicals is reduced to one-sixth, and a grower can cover five times the acreage in the same amount of time,” Rob said. Another benefit of the LV-8 is the dramatic savings in water consumption its low volume capabilities facilitate. With a conventional sprayer, 1-200 gallons of water might be necessary to mix the com- pound, but with the LV-8, only three gal- lons per acre are required. The LV-8 can be mounted on a pickup truck, a trailer, or pulled by a tractor and is easily portable because it is fitted with a forklift-friendly skid. “It can also be used to spray miticides, fungicides and can be used on vegetables and other crops,” Rob said. The penetrating power of the LV-8 is such that a grower can spray every other middle and still cover all of their trees. Rob currently has a patent pending on the LV-8 and a modification that will incorporate a fan system to increase propulsion of the mist and provide even better coverage. “The addition of the fan will put more material where the grower wants it. We are researching the name Vortec for this model,” Rob said. “One of my business objectives is to contribute to keeping the citrus industry viable and through innova- tion, help to reduce production costs,” Rob said. Rob has earned so much respect in the industry he was invited to make four pre- sentations in Brazil and was awarded a plaque by Curtis- Dyna Fog Ltd. recognizing him as the Best Innovator in North America from 2007-2010. Rob became familiar with Farm Credit through his Dad and brother, who have had a long standing relationship with Farm Credit. “I started with Farm Credit because my family had used them. They have been there when we need them and provide flexible terms,” he said. ■ Another Innovative Arnold Rob Arnold

22 | August 2011 Farm Credit of Central Florida Association News O n April 14, 2011, Farm Credit of Central Florida held its annual stockholder’s meeting at the Lake Mirror Center in Lakeland. AgFirst Farm Credit Bank CEO Andy Lowrey delivered the keynote speech. Congratulations to David J. Stanford, Ronald R. Wetherington, and L. Baylis Carnes III on being re-elected to new three-year terms to the Farm Credit of Central Florida Board of Directors. “I look forward to working with our Directors and staff to deliver credit to our Members at the lowest possible cost, and with the personal service our Members have come to expect since 1916,” said Al Bellotto, Chairman of the Board. ■ Three Directors Re-Elected to Farm Credit of Central Florida Board The membership of Farm Credit of Central Florida re-elected (from the left) Ron Wetherington, Baylis Carnes III, and David Stanford to new three-year terms.

Farm Credit of Central Florida Chairman of the Board, Al Bellotto, talks with annual meeting keynote speaker, Andy Lowrey, CEO of AgFirst Credit Bank in Columbia, S.C. (From the left) Chet Peckett, Randy Strode, Robbie Roberson, Ric Freeman (From the left) Jeff Phillips, Keith Mixon, Michael Mancini (From the left) Faye Wetherington, Chass Bronson, Alice Carlton

Farm Credit of Central Florida August 2011 | 23 I have the great fortune of direct- ing one of the premiere agricultural leadership programs in this country. Since 1989, when the idea first was generated within UF/IFAS of the need for a leader- ship development program for the future leaders of Florida’s agriculture and natural resource industries, Florida agriculture has enthusiastically and strongly supported this idea as it became a reality. To date, over 200 individuals who represent the diver- sity of Florida’s geography and agricul- ture and natural resource industries have participated in the Wedgworth Leadership Institute for Agriculture and Natural Resources and program alumni are taking on increased leadership responsibilities and impacting policy decisions within their organizations, industries and communities. The success of this program is completely due to the relationships built within Florida’s agriculture and natural resource industries, governmental and educational entities and organizations within the private sector. These relation- ships allow this program to go beyond any programmatic and individual goals for the program—with each class and each seminar—we exceed expectations. This continual strive for excellence to keep our program not only relevant, but an extraor- dinary opportunity for participants cannot be accomplished by myself, my team or my program’s advisory council or alumni board—it is the combined efforts of hun- dreds of individuals and organizations who place a high value on this program and it’s contributions to this industry. One of those organizations and many of those individuals are members and staff of Farm Credit. Farm Credit has been a great supporter of this program from the beginning and we are so very grateful for their role in our success. I am grateful to the Farm Credit staff for giving up their evenings to cook dinner for the majority of classes that have gone through this pro- gram. For the past two years, this program has been awarded a grant from the Douglas D. Sims Fund for Rural Leadership that is sponsored by the Farm Credit System Foundation. These grant monies have assisted in programming efforts at a time that additional funds were needed due to the economic downturn. It was Farm Credit of Central Florida that alerted the program of this opportunity and who sup- ported our grant application. Farm Credit has also stepped up and sponsored our annual alumni meeting, which allows for the continued networking and relationship- building so vital to the continued growth of our alumni association. In addition, indi- viduals from Farm Credit have participated in the program, served on the program’s advisory council and alumni association board of directors. The value that Farm Credit places on this program is apparent and greatly appreciated.

In my years directing this program and as a faculty member specializing in leader- ship development, I have come to realize that the most important facet of leadership is the ability to build and sustain relation- ships. The Wedgworth Leadership Institute for Agriculture and Natural Resources is fortunate to have such a wonderful relation- ship with Farm Credit of Central Florida. We have enjoyed 20 years of leadership development within Florida’s agriculture and natural resources and thanks to organi- zations like Farm Credit of Central Florida, we look forward to 20 more! ■ Farm Credit Supports Wedgworth Leadership Program Hannah Carter Ed Morrell & Rick Brown Jeff Phillips & Wilton Simpson Kelly Petruco & Terry Thomas Hugh & Drew Crawford

24 | August 2011 Farm Credit of Central Florida Industry News F ormer Farm Credit of Central Florida Director, and current Member, Maury Boyd received the 2011 Florida Grower Citrus Achievement Award during a special presentation last week at Florida Citrus Mutual’s Annual Conference. Boyd was selected for the honor based upon his innovative foliar nutrition program, which is credited for extending the productive life of his groves infected with HLB. Seeing the success of the program, other growers have adopted Boyd’s approach. Many credit his nutritional and psyllid control program as a bridge between today and a time when more per- manent HLB solutions can be found. In short, he has given many growers hope they can remain viable while science works on the problem of this disease.

In accepting the award, Boyd thanked those who’ve worked with him in developing the program, particularly his grove manager Tim Willis and the researchers based at the UF/IFAS Southwest Florida Research and Education Center. Boyd is president of McKinnon Corporation based in Winter Garden, Florida. ■ Editor’s Note: Our thanks to Frank Giles of Florida Grower for providing this information. F red Dietrich of Orlando was named the recipient of the Farm Credit/Florida Cattlemen’s Association Outstanding Rancher and Leadership Award at the FCA convention in Marco Island, Florida.

Fred was an Agribusiness teacher for 30 years and has been an auctioneer since 1969, often donating his time and services to agricultural youth shows. He has also been a cattle rancher holding many leadership positions in the industry; President of the National Polled Santa Gertrudis Association, Santa Gertrudis Breeders International, President of the Orange County Farm Bureau, and President of the Orange County Cattlemen’s Association. Farm Credit is pleased to honor the cattle industry’s leaders and congratulates Fred Dietrich for this coveted recognition! ■ Former Farm Credit Director Wins Award at Citrus Conference Fred Dietrich Wins Farm Credit/FCA Award at Cattlemen’s Convention Florida Grower Editor, Frank Giles (left), presented Farm Credit of Central Florida Member, Maury Boyd (center) the Citrus Achievement Award trophy, along with Keith Griffith of Chemtura AgroSolutions. Farm Credit of Central Florida Sr. VP, Regina Thomas (left) presents Fred Dietrich the Farm Credit/Florida Cattlemen’s Association Outstanding Rancher & Leadership Award.

Farm Credit of Central Florida August 2011 | 25 M r. James M. Knox, Jr. father of Bruce and Monty Knox, and husband of Nada was inducted into the Florida Nursery, Growers and Landscape Association’s Hall of Fame at the recent FNGLA convention. Monty and Bruce accepted the award on Mr. Knox’ behalf. “Mom and Dad started the family nursery business in their backyard. Today it is one of the top 100 nurseries in the country. Dad had no previous nursery experience and performed all of the tasks the business required initially,” Monty said. “Determination and his doctorate from the school of hard knocks was all he had to rely on at first, but he never lost sight of the importance of providing quality material and service to his customers,” Monty said.

Farm Credit is proud to play a role in the growth and success achieved by Knox Nursery. Congratulations to Mr. Knox on this richly deserved honor! ■ F arm Credit of Central Florida Apopka Loan officer, Jennifer Parrish was named the 2011 recipient of the Farm Credit/Florida Nursery Growers Landscape Association’s Young Nursery Professional of the Year at the FNGLA convention in Naples. A native Floridian, who grew up on her fam- ily’s nursery in Broward County,Jennifer is a 2003 University of Florida graduate with a degree in Environmental Horticulture. Jennifer has brought her high-octane enthusiasm to every task she tackles and is widely known in the nursery industry for her hands-on, let’s get it done approach. Among the many hats she has worn on behalf of the nursery industry include 2007 President of the FNGLA’s Action Chapter and currently involved on many fronts including service as the Action Chapter’s alternate to the FNGLA board of Directors.

In her free time she stays active by playing roller derby and getting involved in crazy races such as Muddy Buddy and the Warrior Dash. She also loves spending time with her family and boyfriend as well as her two kitties. Congratulations to Jennifer Parrish! ■ James M. Knox, Jr., Inducted into FNGLA Hall of Fame Jennifer Parrish Wins Farm Credit/FNGLA Young Nursery Professional Award Farm Credit of Central Florida Members, Monty (left), and Bruce (right) Knox accept their father’s plaque to commemorate his induction into the FNGLA Hall of Fame.

Wes and Vickie Parrish accept the Farm Credit/FNGLA Young Nursery Professional Award from FNGLA’s Immediate past President, Carolan Mahr (left) on behalf of their daughter, Jennifer Parrish. Jennifer Parrish

26 | August 2011 Farm Credit of Central Florida Industry News A griculture is a 14 million dollar industry and an important com- ponent of the cultural and eco- nomic environment in Citrus County. While the overall economy has taken a downturn, agriculture continues to be a viable industry, and its continued vitality is beneficial for all residents. Local agri- culture generates a positive impact on the economy by supporting related businesses such as banking, real estate, legal services, transportation, packaging, equipment, seed, agricultural suppliers, services, and marketing firms.

Realizing the importance of a thriv- ing agricultural industry, UF/IFAS Citrus County Extension offered to assist in the development of an “alliance” of agricultural commodity groups in Citrus County. The Agricultural Alliance of Citrus County was formulated in 2009 to serve as a voice for agriculture and to build relationships through community education on the environmental and economic benefits of sustainable agriculture. The success and strength of the Agricultural Alliance has been the group’s ability to gain support from stakeholders, governmental agencies, and elected offi- cials in the community. Chairman Dale McClellan of M&B Dairy, and Co-Chairman and past president of the Florida Cattlemen’s Association Larry Rooks bring a wealth of knowledge, charisma, and steadfast leader- ship to each meeting.

The Agricultural Alliance of Citrus County is committed to achieving its goals of sustainable agriculture through education, marketing and promotion, and involvement in local governmental affairs. To accomplish their goals, a variety of methods have been implemented. Some of these methods include participating in a local farmers market, participating in the AGRItunity Conference and Trade Show, allowing the University of Florida to show- case many of their agricultural operations in an educational farms tour, serving in the County’s Stakeholders Advisory Group, and bringing awareness of agriculture to youth in an “Awesome Ag Day.” The Agricultural Alliance is a unique and eclectic group, with each individual sharing their own set of experiences and expertise with others. Participants from the agricultural industry include blueberry, citrus and strawberry growers, dairy and juice producers, nursery and green indus- try professionals, vegetable growers, and cattlemen. Participants also include gov- ernment officials such as Citrus County Commissioners Wynn Webb, Rebecca Bays, and Joe Meek; State of Florida Representative Jimmie T. Smith; and representation from Congressman Rich Nugent’s office. The Agricultural Alliance is also supported by the Citrus County Chamber of Commerce, the Citrus County Economic Development Council, and the Citrus County Cattlemen’s Association. The group also has benefitted from the support of such businesses as Florida Farm Bureau and Farm Credit of Central Florida. Representation from governmental agencies as well as county and state elected officials is invaluable, providing a forum to address the needs of the agricultural community and create an awareness of the value of agriculture in Citrus County. UF/IFAS Citrus County Extension Agents provide updates from the University of Florida, offer professional applicator train- ing reviews and licensing opportunities, and help organize group activities and edu- cational programming. The Citrus County Chamber of Commerce and Citrus County Visitor and Convention Bureau also lend their expertise in promoting agri-business and agri-tourism in the county. This unique approach of involving community stakeholders, governmental agencies, and agricultural commodity groups has already been called a model for creating true partnerships for the advancement of agriculture. Other county Extension agencies have begun to use the example of Agricultural Alliance of Citrus County to start similar organizations. The Agricultural Alliance of Citrus County looks forward to building on its successes and continuing its mission of increasing awareness of the importance of the agricul- tural industry for this and the next genera- tion to come. ■ All programs and related activities spon- sored for, or assisted by, the Institute of Food and Agricultural Sciences are open to all persons with non-discrimination with respect to race, creed, color, religion, age, disability, sex, sexual orientation, marital status, national origin, political opinions, or affiliations.

Government and Agriculture: Partners in Progress By Matt Lenhardt, UF/IFAS Citrus County Horticulture Extension Agent The success and strength of the Agricultural Alliance has been the group’s ability to gain support from stakeholders, governmental agencies, and elected officials in the community.

Farm Credit of Central Florida August 2011 | 27 Florida Cattlemen’s Convention • June 20–24 • Marco Island, FL

28 | August 2011 Farm Credit of Central Florida Industry News Polk County Cattlemen’s Association Ranch Rodeo • February 12 • Bartow, FL

I t has been said, if you find a job doing what you enjoy, you will never work a day in your life. In addition to work- ing on their family’s 8,000-acre ranch near Dade City, Florida, Ben and Chris Barthle, two young entrepreneurs, are launching a business called Central Florida Game Birds, selling guided quail hunts in the fall. The brothers have shared the benefit of growing up on the family ranch, enjoy- ing and respecting the outdoors. “I credit my upbringing for teaching me loyalty and honesty, not only to others, but being honest with myself,” Ben said. Chris and Ben’s, parents, Larry, 1999 Florida Cattlemen’s Association President, and mother, Lynn, obviously taught their children well. Both are graduates of Pasco High School in Dade City, as well as the University of Florida. Ben earned his degree in Food and Resource Economics from the University of Florida in 2007 and Chris graduated from UF with a degree in Agricultural Operations Management in 2008. Both were active members of their high school’s FFA chapter; each serving as Chapter President.

Dad is a principle in the ranching oper- ation and Mom operates Critter Creations, specializing in custom embroidery. Both brothers are married, Ben to Cameron, a first-grade teacher, and Chris to Sara, who is due to deliver their first child, a son, in November. Ben and Cameron welcomed their first child, daugh- ter, Chloe, into the world 15 months ago. Ben has been a Farm Credit of Central Florida Member for over a year. “I learned about Farm Credit from Mom and Dad. They started out working with Farm Credit,” Ben said. Chris is also investigat- ing how Farm Credit can benefit him. “We plan to sell about 60 guided hunts this season and have already sold half just by word of mouth. A guided hunt for two people will be $600.00 and for three it is $850.00,” Ben said. For a two-person hunt they guarantee 30 birds and for a three person hunt 45 birds. ■ To book a hunt, contact Ben Barthle by phone (352) 279-6511 or by e-mail at cfgbben@yahoo.com.

Birds of a Feather Hunt Together (From the left) Chris Barthle and Farm Credit of Central Florida Member, Ben Barthle Chris and Ben Barthle put one of their hunting dogs through his paces in preparation for hunting season. Name _ _ Address _ _ _ _ Phone _ _ Email _ _ Submit entry form by mail or e-mail before August 31, 2011 to: Ron O’Connor Farm Credit of Central Florida P.O. Box 8009 Lakeland, FL 33802-8009 Marketing@FarmCreditCFL.com Enter for a chance to Win a Two-person Bird Hunt guided by Ben and Chris Barthle Member News

30 | August 2011 Farm Credit of Central Florida IRS Notices If you receive a notice from the IRS, don’t panic, the Service sends out millions to tax- payers every year. Most of these letters and notices can be dealt with easily. Notices are sent out for a number of reasons including requests for payment of taxes, to notify you of changes to your account, request addi- tional information or correct errors noted by the IRS. Usually, the notices are very specific and a correct response will usually handle the issue.

The notice will contain specific instructions as to what the IRS is request- ing, and a response should only address what is requested. If you receive a correc- tion notice, compare it with your return and review all correspondence from the IRS with your tax return preparer. If you and your tax return preparer agree with the cor- rection notice, a payment may be required. If you don’t agree with the correction, it is important that a response be made in a timely and proper manner explaining why you disagree including any supporting documents that the Service should consider. Most correspondence with the IRS can be handled by mail.

It is important that you respond. Whatever the issue is, ignoring the notice will not make it go away. Be sure to keep copies of all notices to and from the IRS. Amended Form 1040X Individual Returns Amended returns allow taxpayers to file again to correct income, add missed deduc- tions or credits, to correct your filing status, and correct any errors discovered after you file your original return. Generally, you do not file an amended return to correct math errors as the IRS will make the correction and notify you, see above IRS Notices. Also, you don’t file an amended return if you forgot to attach a form such as a W-2 or certain Form 1099s, the IRS will notify you. A Form 1040X is used to amend Forms 1040, 1040A or 1040EZ. Time limits are also involved when filing amended returns. Filing an amended return does not increase your chances of being audited. A separate amended return is required for each tax year that you are amending and certain procedures are to be followed when filing amended returns. If the amended return involves an additional schedule or form, these should be attached to the amended return.

If you are filing for an additional refund, wait until your original refund has been deposited directly into your bank account or you have received a paper check. The paper check may be cashed while wait- ing for your additional refund. Any tax due as a result of filing an amended return should be paid as quickly as possible to reduce interest and penalty charges. The 1040X Form has been recently redesigned for ease in filing. ■ For more information or questions on IRS notices or Form 1040X amended returns, please contact me at (863)640- 2008 or Tom@beasleybryantcpa.com. Beasley, Bryant & Company, CPA’s, P.A. will be conducting a seminar on the use, application and advantages of QuickBooks for the Farm Credit of Central Florida customers and other interested parties on August 23 and September 22. Mr. Ryan Beasley will be conducting the seminars. Additional information will be forthcoming regarding the seminars. For information on other relevant tax and business topics visit our website at www.beasleybryantcpa.com . We at Beasley, Bryant & Company, CPA’s, P.A. are experienced in agricultural business problems, tax issues and other business concerns you may have and are here to help you.

Thomas J. Bryant, CPA is Tax Partner, Beasley, Bryant & Company, CPA’s, P. A., Lakeland, Florida (863)646-1373. Tax Notes Greenhouse Grower Magazine annually recognizes its top 100 nursery growers in the industry. Among those receiving the honor this year are: #18 - Hermann Engelmann Greenhouses, Inc. #43 - Plant Marketing, LLC #67 - Riverview Flower Farm, Inc. #79 - Dewar Nurseries, Inc. #99 - Knox Nursery, Inc. Congratulations to these great producers for achieving this coveted honor! ■ Central Florida Nurseries Recognized by Greenhouse Grower Magazine Financial News

Industry News Consolidated Balance Sheets Consolidated Statements of Operations (unaudited) June 30, December 31, (dollars in thousands) 2011 2010 (unaudited) (audited) Assets Cash 235 $ 13 $ Investment securities: Held to maturity (fair value of $48,522 and $45,946 respectively) 47,985 45,476 Loans 339,923 376,001 Less: allowance for loan losses 7,549 4,426 Net loans 332,374 371,575 Accrued interest receivable 1,717 1,735 Investments in other Farm Credit institutions 12,561 13,348 Premises and equipment, net 815 870 Other property owned 6,465 6,806 Due from AgFirst Farm Credit Bank 2,269 6,980 Other assets 3,994 4,890 Total assets 408,415 $ 451,693 $ Liabilities Notes payable to AgFirst Farm Credit Bank 327,271 $ 369,260 $ Accrued interest payable 617 724 Patronage refund payable 26 29 Other liabilities 4,307 4,196 Total liabilities 332,221 374,209 Commitments and contingencies Members' Equity Protected borrower equity 6 19 Capital stock and participation certificates 1,054 1,110 Retained earnings Allocated 33,183 33,183 Unallocated 41,936 43,153 Accumulated other comprehensive income (loss) 15 19 Farm Credit Of Central Florida, ACA Consolidated Balance Sheets Total members' equity 76,194 77,484 Total liabilities and members' equity 408,415 $ 451,693 $ (dollars in thousands) 2011 2010 2011 2010 Interest Income Investment securities 230 $ 219 $ 451 $ 453 $ Loans 4,169 4,117 8,429 8,376 Total interest income 4,399 4,336 8,880 8,829 Interest Expense Notes payable to AgFirst Farm Credit Bank 1,920 2,210 3,959 4,466 Net interest income 2,479 2,126 4,921 4,363 Provision for (reversal of allowance for) loan losses 1,143 1,470 4,281 3,625 Net interest income after provision for (reversal of allowance for) loan losses 1,336 656 640 738 Noninterest Income Loan fees 189 135 210 284 Fees for financially related services 57 145 90 170 Equity in earnings of other Farm Credit institutions 861 2,077 2,551 3,824 Gains (losses) on other property owned, net (246) (78) (729) (223) Gains (losses) from sale of rural home loans 12 41 31 80 Insurance Fund refunds — 428 Other noninterest income 33 24 44 83 Total noninterest income 906 2,344 2,197 4,646 Noninterest Expense Salaries and employee benefits 1,324 1,273 2,749 2,569 Occupancy and equipment 169 170 346 342 Insurance Fund premium 50 8 102 91 Other operating expenses 406 330 857 716 Total noninterest expense 1,949 1,781 4,054 3,718 Net income 293 $ 1,219 $ (1,217) $ 1,666 $ ended June 30, Consolidated Statements of Operations (unaudited) For the three months ended June 30, For the six months June 30, December 31, (dollars in thousands) 2011 2010 (unaudited) (audited) Assets Cash 235 $ 13 $ Investment securities: Held to maturity (fair value of $48,522 and $45,946 respectively) 47,985 45,476 Loans 339,923 376,001 Less: allowance for loan losses 7,549 4,426 Net loans 332,374 371,575 Accrued interest receivable 1,717 1,735 Investments in other Farm Credit institutions 12,561 13,348 Premises and equipment, net 815 870 Other property owned 6,465 6,806 Due from AgFirst Farm Credit Bank 2,269 6,980 Other assets 3,994 4,890 Total assets 408,415 $ 451,693 $ Liabilities Notes payable to AgFirst Farm Credit Bank 327,271 $ 369,260 $ Accrued interest payable 617 724 Patronage refund payable 26 29 Other liabilities 4,307 4,196 Total liabilities 332,221 374,209 Commitments and contingencies Members' Equity Protected borrower equity 6 19 Capital stock and participation certificates 1,054 1,110 Retained earnings Allocated 33,183 33,183 Unallocated 41,936 43,153 Accumulated other comprehensive income (loss) 15 19 Farm Credit Of Central Florida, ACA Consolidated Balance Sheets Total members' equity 76,194 77,484 Total liabilities and members' equity 408,415 $ 451,693 $ (dollars in thousands) 2011 2010 2011 2010 Interest Income Investment securities 230 $ 219 $ 451 $ 453 $ Loans 4,169 4,117 8,429 8,376 Total interest income 4,399 4,336 8,880 8,829 Interest Expense Notes payable to AgFirst Farm Credit Bank 1,920 2,210 3,959 4,466 Net interest income 2,479 2,126 4,921 4,363 Provision for (reversal of allowance for) loan losses 1,143 1,470 4,281 3,625 Net interest income after provision for (reversal of allowance for) loan losses 1,336 656 640 738 Noninterest Income Loan fees 189 135 210 284 Fees for financially related services 57 145 90 170 Equity in earnings of other Farm Credit institutions 861 2,077 2,551 3,824 Gains (losses) on other property owned, net (246) (78) (729) (223) Gains (losses) from sale of rural home loans 12 41 31 80 Insurance Fund refunds — 428 Other noninterest income 33 24 44 83 Total noninterest income 906 2,344 2,197 4,646 Noninterest Expense Salaries and employee benefits 1,324 1,273 2,749 2,569 Occupancy and equipment 169 170 346 342 Insurance Fund premium 50 8 102 91 Other operating expenses 406 330 857 716 Total noninterest expense 1,949 1,781 4,054 3,718 Net income 293 $ 1,219 $ (1,217) $ 1,666 $ ended June 30, Consolidated Statements of Operations (unaudited) For the three months ended June 30, For the six months The shareholders’ investment in the association is materially affected by the financial condition and results of operations of AgFirst Farm Credit Bank. Copies of AgFirst’s quarterly and annual financial reports to shareholders are available free of charge at www.agfirst.com, or by writing to AgFirst Farm Credit Bank, Financial Reporting Department, P.O. Box 1499, Columbia, SC 29202-1499.

Farm Credit of Central Florida August 2011 | 31 F arm Credit of Central Florida plans to offer a QuickBooks seminar for Members to hone their accounting skills and provide accurate, instant report- ing on their agri-businesses. The course will be a one-day class conducted by QuickBooks-Certified Pro Advisors who specialize in servicing agricultural clients and will be held in Lakeland. Class size will be limited to about 15 people, so if you are interested in being invited, please contact Ron O’Connor via e-mail at Marketing@FarmCreditCFL.com or call (863) 682-4117 ext. 403. ■ Farm Credit to Offer QuickBooks Seminar I n November 2000, a group of commit- ted volunteers got together to “brain storm” ideas for a fund raising event. One of those volunteers was Fran Stanford, wife of Farm Credit of Central Vice Chairman of the Board, David Stanford. A lady named Helen Kennedy pro- posed the idea for a garden festival and on March 31, 2001 the Bloom ‘n Grow Garden Society presented its idea for the first ‘Spring Fever in the Garden.” The event takes place every spring on the his- toric streets of Winter Garden, Florida and draws 40–50,000 visitors to buy plants, arts, crafts, and culinary treats ranging from homemade ice cream to scrumptious BBQ. In 2012, the event will celebrate its 12th anniversary April 14 & 15. ■ Spring Fever in the Garden

PRSRT STD U.S. POSTAGE PAID COLUMBIA SC PERMIT 1160 Farm Credit of Central Florida P.O. Box 8009 Lakeland, FL 33802-8009 Can you put a price on your peace of mind? Planting crops is a risky proposition. You invest in seed,fertilizerandcropprotectants.Youworklong hoursplanting…andthenjusthopeforthebest. Unfortunately, no one can predict the weather. Now is the time to talk to your crop insurance specialist at Farm Credit. It can mean the differencebetweenfinancialsuccessanddisaster. Supplying crop insurance for: • Citrus Trees & Fruit • Nurseries • Fresh Vegetables • Peanuts • Blueberries Farm Credit Crop Insurance 866-245-3637 FarmCreditCFL.com Farm Credit is an equal opportunity provider and employer.

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