-: Okay, well, good morning.
My name's Mike Boehm,
vice chancellor for the Institute of Ag
and Natural Resources,
and also vice president for Ag and Natural Resources
at the University of Nebraska.
Welcome to this a day long event
that we have been excited to plan for
and to bring you here to Lincoln,
and in fact, through live streaming
across all of Nebraska and beyond.
I haven't gotten the count yet
on how many folks are joining us via live stream,
but it's our pleasure
along with the Farm Credit Administration
with our colleague, Chairman Glen Smith,
to co-host this event.
This is a big deal in Nebraska,
it's a big deal across rural America,
it's a big deal for urban America,
focusing on young, small and beginning farmers and ranchers
in agriculture.
I think as the day goes on,
we will hear from those who fall into those categories
about what's working for them, what's not working for them.
We'll hear about what the federal programs
and the state programs that are available.
We'll hear from Farm Credit Services,
we'll hear from independent banks and lenders
to really understand what's working and what's not.
It falls within the context,
however of prosperity in rural Nebraska
and rural America.
This morning, the chairman and I
co-hosted a group of individuals
from all walks of life across Nebraska,
really focused on rural health care,
including mental wellbeing and mental health.
But that was just a piece.
We covered a wide range of topics to include housing,
access to education, broadband,
logistics, road, grocery stores, you name it,
the complete package around what it takes
for a small town America
connected to producing the food, the fuel,
the feed and the fiber that really drives America
and beyond.
We talked a lot too in that session about the codependency
between rural and urban.
And sometimes we get in especially now
in somewhat of a polarized place in us versus them dynamic
and really just talked a lot about that codependency,
the importance of people
knowing where their food, fuel, feed and fiber comes from
and linking it back.
We talked about that gradient.
So a little bit about this today.
This is really an informal,
so great seeing the audience.
We had 162 folks register,
I think mostly for the lunch in the free parking,
if I had to guess,
and then we have this video linked and video streamed.
We'll have access for folks who are online,
we're monitoring the chat group, chat box.
So if you have questions,
if you have something that you'd like us to see,
please put it in the chat box.
For folks who are physically in the room,
there are some pens and some note cards.
So please jot down questions and jot down thoughts.
When we get to the Q&A, we'll have floating microphone.
So if you've been to a (indistinct) lecture,
like the one that we had right in this very room
with Frank Mitloehner from UC Davis,
just a couple of weeks ago.
So it'll operate very much like a (indistinct) lecture.
You're at tables, you're at round tables for a reason,
not in long rows of chairs.
So we do want, and hopefully we can build in.
Chairman Smith and I will be moderating.
So we'll probably before we go to a Q&A,
give you a few minutes to decompress
and think and talk through some things,
and then we can maybe even get
some table perspective questions.
Each session is an hour
and it will be broken up with 15-minute breaks.
Welcome to the great plains room
and the newly expanded and renovated East Campus Union.
The restrooms are right out these doors when you came in.
If you go around, in fact, if you sneak through that door
at the back of the room and go through another door,
there's another set of restrooms that are there.
Many of you have found Starbucks.
There is now over for those who prefer Dunkin' Donuts.
There's a new Dunkin' Donuts across the way.
I think we have donuts perhaps
guessing from Dunkin' here this morning.
And for those of you who are really looking for a treat,
the newly renovated expanded UNL dairy store
is open for business at 10 o'clock.
So if you're looking for ice cream for breakfast,
there you go.
So we'll have two sessions and then we'll break for lunch.
It's a networking lunch,
and then we'll get on with it at 1:30.
Two sessions this afternoon, and then a wrap up.
Okay, with all of that said, my understanding
of kind of the Genesis of this, and chairman Smith,
you can correct me Glen, if I got this wrong,
but Congressman Fortenberry was I think, in a hearing,
and I think the chairman was there.
And as we've come accustomed with Congressman Fortenberry,
I believe that Congressman Fortenberry
said something at some point to the chairman,
"We would love to host you in Nebraska, Mr. Chairman,
"and about these really important issues
"that are vital to our young, beginning
"and small farmers and ranchers.
"And I'll throw processors in there as well,
"because we have 80 lockers,
"both custom in USDA inspected here in Nebraska.
"And COVID helped us understand the importance
"of local processing facilities."
But there was an offer made and then COVID hit.
And then earlier this summer, this resurfaced.
And so we put together a team
between the Farm Credit Administration
and the University of Nebraska,
and we brought together and I can claim no credit for this,
an amazing group of people who thought long and hard
for the last 12 weeks about who would be good
to bring in and what the topics were.
And so that's how the four panels came to be.
So that's the Genesis of the session.
While he couldn't be with us,
Congressman Jeff Fortenberry has videotaped, a welcome,
and we'll go to that, it's about four and a half minutes.
-: Hi, this is Congressman Jeff Fortenberry.
And first of all,
let me welcome all of you who are attending the conference
at the University of Nebraska
on Young and Beginning and Small Farmers.
I'm very excited that you're there.
And let me thank my good friend, Dr. Mike Boehm,
vice chancellor of research at the university,
as well as a Chairman Smith
of the Farm Credit Administration for hosting today's event.
It's a really, really important initiative
that's going on here.
For a number of years,
Congress has passed legislation
and funded a beginning farmers initiatives
financing, and otherwise
to help with a situation in America
given the average age of the farmers about 58 years old,
and only about 10% of farmers are under the age of 35.
But in addition to that,
we are all about trying to grow the ag family.
Production agriculture,
traditional means of production, of course
is the mainstay and the backbone of this competitive,
amazing use, utilization of our natural resources
as gifts in America,
along with the innovation of our farmers and ranchers,
we lead the world in terms of the lowest grocery prices.
In fact, we produce so much food commodities
that we are able to meet our charitable impulse
by giving away about $2 billion worth of food
around the world to the world's poor.
This also helps us with diplomacy
and creating conditions for stability.
So what we wanna do here today
is talk about the practical realities
of financing and other available programs
that are available to you
if you're starting a farm
or thinking about small scale agriculture.
Your initiatives, your innovation, your entrepreneurship,
your ideas are essential again to growing the ag family
and creating localized economies
where we are connecting the farmer to the family
and the food to the school,
and re-establishing this rural-urban economic dynamic
with healthy, nutritious, fresh foods.
This has huge complimentary benefits again for our economy
for opportunity for you,
but also dovetails very nicely
with some of the new advancing research
that's going on at the university.
We are undertaking a new project
in concert with the university called Farmer of the Future.
We have something in Washington
called the Agricultural Research Service
that does all types of research across this nation.
And hopefully very soon,
we're going to have a new facility there
that is focused on high-tech
and how we use precision agriculture,
how we are using regenerative agriculture
and how we build in resiliency
for 21st century agricultural production.
So obviously that has huge benefits for reducing input costs
and improving yields as well as revenue
to production agriculture,
but it has huge implications as well
for the growing movement among small scale of farming.
A number of years ago,
as well prior to COVID, I challenged Chairman Smith.
I said, why don't we do a conference
on financing options that are available
for young and beginning farmers or small scale farming?
And he graciously agreed, of course, that was before COVID
and we've been disrupted a bit because of that,
but I'm so happy that the conference
has finally come together now.
Finally, let me talk about this in terms of what it means
to have a 21st century architecture
of security and prosperity, not only for Nebraska,
but also the entire world.
Without food, civilization lasts about three days.
And again, as I said earlier,
the amount of food that we produce in our country
gives us a natural, competitive advantage
in terms of trading worldwide,
but it's more important than that.
Our ability to help the poor,
to create the conditions for stability stops migration,
stops desertification.
Our ability to move our innovation and research,
advanced research at universities
into the hands of people worldwide
stops malnutrition, improves health,
and again, we benefit
from that both economically and culturally.
So to the degree,
I know that you are called in your heart of hearts
to use your own two hands to toil the ground, if you will,
to toil and make things that are essential and good,
and that starts with food.
And so I'm so proud again
to represent you in the United States Congress,
to be a part of these new movements in agriculture,
building upon our traditional competitive advantages
and looking forward to this new 21st century architecture,
where food is at the center
of thinking about how we create conditions for stability,
prosperity, and peace.
Thank you so much.
-: Absolutely, thank you very much Congressman Fortenberry.
Let me introduce my co-moderator, Mr. Glen Smith.
Glen was designated the chairman and CEO
of the Farm Credit Administration
by then President Trump on July 17th, 2019.
Glen and I chatted a little bit
about the Farm Credit Administration.
So if you go back in time to 1916,
so 105 years give or take,
think about where we were as a country,
think about what was happening.
Ironically, they, at that time
were in the midst of another global pandemic,
hard to believe, but thinking about the fragility
of the agricultural system in this country,
and the importance of ensuring that there was capital,
a financial means available to the producers.
And that's really the Genesis
of the Farm Credit Administration.
You'll hear a little bit more about this,
but chairman Smith shared
that the total assets that are brought together $428 billion
would make it the ninth largest bank if you will,
in the United States of America, it's a pretty big deal.
Glen grew up and is a native of Atlantic, Iowa,
not too far from here, actually,
he was raised on a diversified crop and livestock farm.
He graduated from Iowa State University in 1979.
He has fun memories of playing the Huskers back then.
We joked a little bit about that.
I said I was glad
that we weren't playing Iowa State this year,
but that was my two cents.
His bachelor's of science was in agricultural business.
And then he accepted a position
with Don Agricultural Services
as state manager of the company's real estate division.
In 1982, Glen and his wife moved back to his hometown
and they started farming
and developed an ag service business.
Today their family farm,
Smith Generation Farms Incorporated
is grown to encompass about 2000 acres devoted to corn,
soybeans, hay, and they have a small beef cow herd.
In 1990 here in the title of accredited rural appraiser
from the American Society of Farm Managers
and rural appraisers.
In 2000, Glen served as president
of the Iowa chapter of that organization.
He's a proud lifelong member of the Farm Bureau,
the Iowa Corn Growers Association,
the Iowa Soybeans Association,
and the Iowa Cattleman's Association.
Without further ado,
please join me in welcoming the chairman
of the Farm Credit Administration, Mr. Glen Smith.
(audience applauding)
-: Hey, what a pleasure to be here?
What a wonderful venue and what a great invitation here
from University of Nebraska.
And thank you in particular,
Vice Chancellor, Dr. Boehm, Greg Ibach,
a good friend of mine from DC under Secretary Ibach.
You should say Jesse Brophy.
I meet Matt (indistinct) and Matt Hammond.
I know you've all put in countless hours,
along with my staff, three of them here in front,
two of them in the back table
to put this whole event together.
It was a challenge two years ago,
and it doesn't seem like two years.
With the pandemic, I don't know about you all,
but I've lost all semblance of time and dateline,
but I had appeared
in front of the house ag's appropriations subcommittee.
And Congressman Fortenberry hearing I was from Western Iowa,
hearing my passion for young, beginning and small farmers,
put out the challenge to come over in Lincoln.
In fact, he even offered to issue me a visa
to cross a Missouri river,
which I thought was very gracious of him.
But it's been two years in coming, obviously,
as chairman, CEO,
I've had a lot of things I've had to put on hold,
and at the top of the list has been to actively push
and encourage our system institutions to continue to expand
on the Young, Beginning and Small Farmer Program,
what we call YBS.
As mentioned, I'm board chairman, CEO
of the Farm Credit Administration.
That's the regulator for the farm credit system.
The farm credit system provides roughly 44%
of our nation's farm debt.
We are the leaders as far as providing financing
to agriculture assets, roughly 428 billion
in loans right now, around 320 billion.
Our job is to regulate and examine system institutions
and make sure they're fulfilling their mission to Congress
in making loans in a safe and sound manner.
And an important part of that mission
involves young, beginning and small farmers.
I go back to 1974.
I graduated from Atlantic High School,
and like a lot of farm kids,
I was in VO-AG in FFA
and I think we had maybe 24, 20 out of class for 165 people.
We had 25 people in our VO-AG FFA class.
Today, I think there's only three of us
still inactive agriculture, and with me living in DC,
it might be questionable whether I'm actively engaged in ag,
although I am every day.
So that just tells you,
we lost a generation of farmers in the '80s,
and then the Farm Credit Act of 1987,
that's why they specifically authorized
the farm credit system with the mission
of advancing young, beginning and small farmers.
I forgot to add for a farm boy.
We sure didn't rely, Mike Stokey in the back,
the director of our public and congressional affairs
was following his GPS today and what a beautiful day
to come out and talk about the future of agriculture.
Harvest is wrapping up for a lot of us sunny day,
and we followed our GPS
and we got our road mixed up with lane,
and instead of being here at the union,
we ended up admiring a very beautiful cow herd,
Angus cow herd that was pasturing stock.
So we started out the day in a good shape, didn't we Mike?
Again, my wife and I started out as beginning farmers
in the '80s and a true beginning farmers.
I think maybe we had $2,500 equity
in her Oldsmobile Cutlass, was a cool car at that time.
Since that time, our operation has grown.
Three of our four children
are involved as young and beginning farmers.
So when I come to farm credit here almost four years ago,
I learned about YBS, Gary Madison here in front
who's a director of YBS program for the systems.
I met with him, and he could tell right away, boy,
this ignited a real interest in me.
And so I started asking questions from the get go
about the program.
And while the system has done a good job,
I could see where we could do a better job.
We've got roughly 72 different institutions
throughout the country.
I traveled a lot, I asked a lot of questions about YBS.
In fact, as I visited farms and ranches
throughout the country,
usually I wouldn't ask
for the large glitzy multi-generation operators.
I wanted to see the young farmer operations
in their work clothes.
In fact, only two days ago,
I was in Utah and I had a really nice visit to a ranch.
They produced hay for the international market
in the valley of Utah and the young operator
and his wife showed up on the farm
and he had a six shooters strapped to his side.
And I thought that was kind of interesting.
As a lender, do you always come prepared
with the six shooter?
And his wife says, you know what, I keep telling him,
why do you put that thing on?
He says, because of rattlesnakes, varmints,
blah, blah, blah.
She said, "Yeah, I think he thinks it just looks cool."
But anyway, it was a fun visit,
but typical of the visits
that we've had throughout the country.
And as we move this YBS program ahead,
not only are we sharing best practices
like we're doing today in Lincoln,
but eventually we're developing rulemaking
to rate the different system institutions
on their effectiveness,
on the numbers, on the practices.
And you know, what practice is worthwhile
unless you actually evaluate it.
And as an oversight supervisor of the system,
obviously we're in a position to do that.
So I think, again, this is a culmination
of really two years of planning.
We hope it to be the start.
University of Nebraska, you're the pace setters here
for the rest of the country.
We really hoped to take this same mission
to many other regions of the country.
So I thank you very much for your kind invitation
to be here today, thank you.