annual report and member benefits guide

Transcription

1 Michigan Farm Bureau Farm Bureau Insurance MFB, Inc. Michigan Agricultural Commodities Marketing Association, Inc annual report and member benefits guide

2 A message from President Wayne H. Wood Clear vision offers unique perspective Vision is more than just finding your way through life without hurting yourself. It s about clarity of thought and sharpness in decision making, not unlike the difference in picture quality between a new HD television and an old analog set. You can get by with the old model, but a clearer picture reveals things that have been overlooked. Not all of those things are pleasant or can be fixed with a set of dollarstore glasses. Take our present economic situation in Michigan for example. There are dozens of problems that I prefer to call challenges, but the most beneficial reaction to them is to view them as opportunities. Farm Bureau members in 2010 rinsed their eyes, sharpened their Wayne H. Wood vision and took advantage of those opportunities. You took action. You voted for Friends of Agriculture, and 95 percent of those candidates were elected. That s answering a challenge with clear vision. Already, the people you helped elect have saved the state $435 million per year with administrative reforms, elimination of fraud and abuse and limits on the welfare entitlement lifestyle. There have been more than 300 regulatory repeals since the present administration took office. Change happened because of Farm Bureau member efforts to sharpen the vision of this administration and legislature about the importance of letting farmers do what they do best, and not regulate them to death. One of the people you helped elect Governor Rick Snyder uses the phrase relentless positive action. I know the Governor s taken a lot of heat for some of the reforms he s set in motion, but remember, he and the legislators who support agriculture were not elected to further blur the picture. They were elected to make the tough decisions for the good of all the people of Michigan, and we the voters cannot back away from that mission just because the decisions are unpopular. Farmers know better than anyone else that what s best in the long run doesn t always feel good or look good right now. But we do what s right, whether it s dehorning calves or refusing to go into unnecessary debt. If we know how to care for that calf until she heals and do without a new expensive toy, we should see clearly how to support lawmakers when they have to cut deeply even painfully or stand their ground against waste. Another opportunity was grasped at the State Annual Meeting. More than 500 farmers sent the Department of Labor (DOL) letters and s condemning the attempt to radically impact employment of youth on farms. The saddest part of the proposal is that grandkids could no longer work with us older folks even if their parents owned the farm in a family partnership. How are they to develop clear vision if they can t benefit from those of us who, by virtue of our experience, have seen so much more? What the DOL doesn t see is that most, if not all of us, developed our work ethic and learned hard life lessons by working on a farm. One of those lessons is that there is no free ride. Another is that when the windshield fogs up, it has to be cleared. Let s remember that lesson this year as we join the fight to keep people in political office who ve made the hard and unpopular decisions. Let s continue to take on the challenges of overregulation and bloated bureaucracy. We have big challenges and big opportunities, and our vision must be clear and focused if we are to see our way into a prosperous agricultural future. We can do it, but it will take vision. But I know no group with clearer eyes than Farm Bureau members. Sincerely, Wayne H. Wood, President Michigan Farm Bureau wwood@michfb.com Senator Debbie Stabenow, chair of the Senate Agriculture Committee, listens to Farm Bureau members. She was on hand during MFB s policy kickoff last spring, and held farm bill hearings in the state. Gov. Rick Snyder has often praised MFB s policy-making process, and carries the policy book with him. page 2

3 A message from Chief operating officer John VanderMolen The right tool in the right hands Have you ever asked yourself why Farm Bureau has succeeded when so many farm organizations of yesteryear have all but disappeared? I believe the primary reason can be directly attributed to our members. You have heard it said that people are key to the success of a business or organization. But people by themselves do not guarantee success. People have to act on their convictions, and Farm Bureau has been blessed with an abundance of members who are willing to do just that. They work together to leverage their efforts and utilize each person s individual talents. They believe they can make a difference and leave a legacy for the next generation of leaders to build on. The second key to Farm John VanderMolen Bureau s longevity and success stems from its clearly stated principles and purpose. The preamble in your 2011 Policy Book says it best: Farm Bureau is an independent, non-governmental, voluntary organization governed by and representing farm and ranch families united for the purpose of analyzing their problems and formulating action to achieve educational improvement, economic opportunity and social advancement and, thereby, to promote the national wellbeing. These are not idle words or catchy phrases. Our purpose is the same today as it was in the beginning. The mission is timeless. A third key to our longevity and success stems from our ability to finance our organization. Money, by itself, does not guarantee success, but not having any money guarantees the business or organization will not be around for long. Many years ago, Farm Bureau leaders recognized that farmer-only membership dues could not generate the necessary funding for years to come. So they invested their membership dollars to create an insurance company in 1949 that was without doubt, the best investment they could possibly have made to secure Farm Bureau s economic future. Starting an insurance company made it possible to bring associate members, along with their membership dues, into the organization to help finance county and home office buildings, cover administrative expenses, and provide superior insurance products for all of our members. But, before we take this asset for granted, we need to recognize that the insurance industry is fiercely competitive and ever-changing. Farm Bureau Insurance must adjust business methods in order to adapt to market conditions and demands. Some of the adjustments trickle down to the county Farm Bureaus and impact county office operations. I wish these adjustments weren t necessary, but wishful thinking rarely saves the day. So, how are we doing as an organization 92 years from the starting line? Here s a partial list: The bills are paid and current. Membership is on the rise. We earned top honors for programming at the AFBF Annual Meeting. We wrote checks totaling thousands of dollars to support 4-H, FFA, the Youth Livestock Show, Student Scholarships, and the like. We celebrated a number of legislative and policy successes. We reached thousands of kids and adults through Project R.E.D. And last, but not least, President Wood s cell phone number is on Governor Snyder s speed dial. When I started my Farm Bureau career in 1976, the speaker at the annual meeting membership banquet was a Catholic nun named Sister Mary Moore Bartell. I never forgot her speech. She described Farm Bureau as a tool, not unlike any other tool, that when placed in the hands of skilled people is capable of amazing results. Sister Bartell knew what she was talking about. I have seen and experienced many, many times during my career what happens when talented people like you roll up their sleeves and work through Farm Bureau to get things done. No task is too big or small. You, the members, are truly amazing people committed to an amazing organization. I consider it a great privilege to serve as your Chief Operating Officer. Sincerely, John VanderMolen, COO (517) jvander@michfb.com Gov. Rick Snyder was on hand for the second Michigan Livestock Expo, and even took part in identifying buyers. page 3

4 A message from treasurer Douglas J. KammaNn A tone of cooperation During 2011, significant financial resources of Michigan Farm Bureau were allocated to Public Policy, Field Operations, and Information and Public Relations activities. With the assistance of farmers, producers, and processors, the staffs of these divisions have successfully coordinated an effort to get agriculture the attention and recognition it deserves in Michigan. Agriculture is now being regarded by the governor as an example of entrepreneurship that is a vital part of jump-starting the economy of Michigan. There is a desire by the administration to establish a tone of cooperation. Barriers are beginning to be removed to allow further expansion opportunities for agriculture. Michigan Farm Bureau s balance sheet reports total as- Douglas J. Kammann sets as of Sept. 30, 2011, to be $11,482,648. MFB s three major asset components are cash, investments in bonds, and investments in affiliates. There was $2,038,237, or 17.7 percent of total assets in cash and money market funds. There was $2,250,000 (par value), or 19.6 percent of assets invested in AA rated or higher, high quality, marketable bonds, which earn a fixed rate of interest income. These bonds are held to maturity and no losses have been realized. The third major component of assets is MFB s investments in its affiliates. Most of the $5,020,641 investment is with MFB, Inc. This is the affiliate which houses revenue activities that are by definition unrelated to MFB s primary mission. The remaining components of assets are comprised primarily of office furniture, computers, accounts receivable, and investments in affiliates. The two major components of liabilities and equity as of Sept. 30, 2011, are $2,163,517 in deferred membership dues revenue and $6,502,681 in undesignated reserves accumulated during MFB s 92-year history. The deferred membership dues component represents dues paid. However, the benefits are to be provided over the remaining unexpired period of the annual membership. Combined, these two components comprise 75.5 percent of the liabilities and equity on the balance sheet. MFB has a $1 million line of credit established. As of Sept. 30, $500,000 had been drawn against the line. There was no long-term debt outstanding. When reserves and deferred membership dues are added together, MFB has percent, or 16.3 months of annual operating expenses in reserve as of Sept. 30, 2011, which is an increase from the prior year s percent or 14.4 ratio. Membership revenues had, until 2010, declined for six con- secutive years. However, the financial position as reported on the balance sheet is strong and reflects very solid liquidity and equity ratios. Michigan Farm Bureau is well positioned to support the county Farm Bureaus and member volunteers who carry out our mission. MFB primarily funds its activities with membership dues revenue, investment income, and program fees. Membership dues revenue growth is below historical averages because of the lingering effects of the recession and the stabilization of the number of family farming operations in Michigan. Through the third quarter ending Sept. 30, 2011, total revenues of $6,908,697 are greater than budget because of higher-than-expected investment income from MFB, Inc. Operating expenses are being directed toward programs and activities that provide the greatest benefit or return on investment for our members. The combined program and general operating expenses through Sept. 30 are $5,934,186. There is an excess of revenue over operating and management expenses of $974,510 through Sept. 30, Farmers continue to insist that Michigan Farm Bureau defend their way of life and supplement it with educational programs, conferences, information, communications, and leadership development opportunities which are timely, original, and essential. An additional vital source of financing these activities and programs comes from two sources: 1) a $1,500,000 dividend from Farm Bureau Life Insurance Company of Michigan directed up to MFB Financial Corporation, then paid annually to MFB. This level of dividend is also planned for the next eight years; and 2) a charitable contribution of $643,750, adjusted annually for inflation, will be made annually by Farm Bureau Life Insurance Company of Michigan to the newly formed Michigan Foundation for Agriculture. These two additional financing activities help maintain reserve funds that will range between six months and 12 months of annual operating expenses. A complete independent audit report, financial statements, and notes to financial statements for last year s 12 month accounting period ending Dec. 31, 2010, can be found at Thank you for your continued leadership, volunteer efforts, and financial support as we all seek to advance and expand agriculture in Michigan. Sincerely, Douglas J. Kammann Treasurer and Chief Financial Officer dkamman@michfb.com page 4

5 Months Expenses through third quarter 2011 Public Policy $1,758,174 (29.7%) Field Operations $1,776,013 (30%) Information & Public Relations $840,144 (14.2%) Core Program Expenses $230,147 (3.9%) County FB Safety Net $78,077 (1.3%) Corporate Offices $730,403 (12.3%) Accounting, Human Resources and Investment Expenses $393,081 (6.6%) Board of Directors Expenses $120,025 (2.0%) Months of liquid assets to cover expenses Membership Dues $4,198,315 (60.7%) Investment Income $2,413,838 (34.9%) Core Program Revenue $304,526 (4.44%) Revenues through Third quarter 2011 County Farm Bureaus Allegan County...(269) Antrim County...(231) Arenac County...(989) Barry County...(269) Bay County...(989) Benzie-Manistee County...(231) Berrien County...(269) Branch County...(517) Calhoun County...(269) Cass County...(269) Charlevoix County...(231) Cheboygan County...(231) Chippewa County...(906) Clare County...(989) Clinton County...(989) Copper Country...(906) Eaton County...(517) Emmet County...(231) Genesee County...(810) Gladwin County...(989) Gratiot County...(989) Hiawathaland...(906) Hillsdale County...(517) Huron County...(989) Huron Shores...(989) Ingham County...(517) Ionia County...(616) Iosco County...(877) Iron Range...(906) Isabella County...(989) Jackson County...(517) Kalamazoo County...(269) Kalkaska County...(231) Kent County...(616) Lapeer County...(810) Lenawee County...(517) Livingston County...(517) Mac-Luce Schoolcraft...(906) Macomb County...(586) Mason County...(231) Mecosta County...(231) Menominee County...(906) Midland County...(989) Missaukee County...(231) Monroe County...(734) Montcalm County...(989) Muskegon County...(231) Newaygo County...(231) NW Michigan...(231) Oakland County...(248) Oceana County...(231) Ogemaw County...(989) Osceola County...(231) Otsego County...(989) Ottawa County...(616) Presque Isle County...(989) Saginaw County...(989) Sanilac County...(810) Shiawassee County...(989) St. Clair County...(810) St. Joseph County...(269) Tuscola County...(989) Van Buren County...(269) Washtenaw County...(734) Wayne County...(734) Wexford County...(231) page 5

6 RELENTLESS POSITIVE ACTION: DEFENDING YOUR FARM Michigan Farm Bureau s Public Policy and Commodity division works to implement legislative and regulatory programs that support Michigan Farm Bureau policy as passed by voting delegates. In both Lansing and Washington, D.C., member interests are guarded and promoted by officially registered lobbyists who work in compliance with state and federal laws. The division staff maintains routine contact with legislators, government agencies and numerous associations and organizations. Staff also initiates requests for action by county Farm Bureaus, when necessary, to successfully implement memberdirected policy. Following is a brief list of 2011 s work to protect and promote member interests National Legislative Accomplishments 2012 farm bill MFB has been engaged in the development of the 2012 farm bill. Farm Bureau members, leadership, and staff continue to meet with Agriculture Committee staff and members of Congress in an effort to establish an effective safety net for farmers has been a watershed year in policy proposals with several organizations suggesting a departure from direct payments. Farm Bureau s priorities have been: commodity programs; conservation programs; crop insurance; research; and rural development. Trade MFB worked toward final passage of the South Korea, Colombia and Panama Free Trade Agreements. Congress approved the trade agreements in October and the President signed them less than two weeks later. Overall, Michigan is projected to increase annual exports by more than $44 million and create an estimated 400 jobs. Fruits and vegetables are projected to see a net gain with increased exports. Processed fruits and vegetables MFB participated in a fly-in to Washington, D.C. to support the use of fresh and processed products in federal nutrition programs. The group highlighted the large percentage of Michigan fruits and vegetables that are processed on an annual basis. The group also pointed out the challenge of utilizing Michigan products within local schools when harvest of many crops is not during the school year. EPA regulation A large number of proposed federal regulations were published in the Federal Register throughout MFB commented on the proposals, updated our farmer members, and communicated the impact of the proposals to Michigan s Congressional delegation. The regulations included AZM, Methyl Bromide, Atrazine, pesticide applications (NPDES permit requirements), and dust. Youth labor regulations MFB engaged in comments opposing changes to youth labor regulations. The U.S. Department of Labor (DOL) issued a Notice of Proposed Rulemaking Sept. 2 that would severely restrict farm work for youth under 16 years of age. MFB communicated with members of Congress to help secure an extension of the comment period and a follow up Congressional letter encouraging USDOL to limit the changes proposed. MFB members filed more than 500 comments between Sept. 2 and Dec. 1, E-Verify MFB accompanied six farmers during an immigration and E-Verify fly-in to Washington, D.C. in September. The group visited each office within the Michigan Congressional delegation urging them to oppose the mandatory use of E-Verify. The fly-in also encouraged members of Congress to support a usable guest worker program for Michigan farmers. Food safety MFB worked to improve food safety programs and guidelines that would minimize disruption to farmers. S. 510, the Food Safety Modernization Act, was signed into law by President Obama early in Staff continues to work with USDA and FDA on implementation of the new legislation. page 6

7 State Legislative Accomplishments During the first year of the 96th legislative session, more than 2,000 bills were introduced, with more than 240 bills signed into law by the Governor. Issues of importance to agriculture signed into law during the first year of the legislative session included: Michigan Agriculture Environmental Assurance Program (MAEAP) Public acts 1 and 2 of 2011 placed the Michigan Agriculture Environmental Assurance Program into statute with meaningful incentives to reform the way the state addresses environmental issues on farms. Farm Bureau supported the legislation and provided grassroots leadership to see the legislation through the policy process, early on in the legislative session. Tax reform Legislation was signed into law (PA 38-PA 45 of 2011) that repealed the Michigan Business Tax and replaced it with a 6 percent corporate tax that only applies to C Corporations. The reforms will save agricultural business filers $11 million in business tax per year. Farm Bureau supported the proposal as a step toward streamlining state government and bringing state spending in line with revenue. Government streamlining and reform In 2011, several government reforms and streamlining measures were enacted in Michigan, including: Changes to eligibility standards for food stamps in an effort to minimize fraud and abuse. Establishing a 20 week maximum eligibility for unemployment benefits in Michigan, and a true lifetime welfare limit was capped at 48 months. State construction job restrictions were revised to create more competition for individuals who want to bid on those jobs. In Michigan public schools, sweeping reforms were made to teacher tenure laws, putting requirements and effectiveness ratings on teachers to gain tenure, as well as establishing provisions for dismissal. Common Sense Solutions TO FIX MICHIGAN Agricultural processing Within PA 22 of 2011, agricultural processing is eligible for economic development grants and loans through the 21st Century Jobs Fund. Farm Bureau supported passage of the legislation. Farmland preservation Legislation was signed into law (PA 79 of 2011) to address funding challenges to the farmland preservation program. Farm Bureau policy supports both temporary and permanent farmland protection tools to stabilize the land base, help maintain the agricultural industry s competitive position, and aggressively increase its economic value to producers and the state. Regulatory reform package Farm Bureau supported legislation that was signed into law making several amendments to the Administrative Procedures Act and the Natural Resources and Environmental Protection Act. The package was comprised of seven Senate-originated bills and five House-originated bills that were signed by the Governor as Public Acts 235, 236, 237, 238, 239, 242, 243, 244, 245, 246, 247, and 248. Highlights of the legislation included: Requiring state agencies to include in the regulatory impact statement whether the proposed rules exceed the standards of other states in the Great Lakes region. Limit the power of a state department to delay a required permit by claiming the application is not administratively complete. Requires the Department of Environmental Quality (DEQ) to hire an independent expert to conduct a study each year to benchmark the cost and timeliness to administer permit programs, customer service, measurable environmental impacts, and comparison to other Great Lakes states. Requires state agencies and some legislative committees to review each regulation promulgated by an agency. Requires a department, when denying a permit, to give the scientific information providing basis for the denial. Requires a department, before initiating a civil enforcement action against a person holding a permit, to give the person an opportunity for a meeting with the department. Specifies that, except as otherwise provided by law, an operational memorandum, bulletin, interpretive statement, or form with instructions could not be given the force and effect of law. Join AgriPac Which candidates for state and federal public offices will be best for agriculture? Michigan Farm Bureau s Political Action Committee, AgriPac, in cooperation with County Farm Bureau Candidate Evaluation Committees, evaluates and endorses the candidates who will best support Farm Bureau policy and agriculture. All AgriPac funds are allocated to Farm Bureau-endorsed candidates. To donate to AgriPac or to learn how to get involved in our election year activities, contact Sarah Black at , extension 2040 or sblack@michfb.com.

8 With nearly 500,000 Michigan policyholders to protect, Farm Bureau Insurance is concerned about the safety and well-being of a lot of people in our great state. No matter what kind of insurance you have with us-farm, home, life, auto, business, or retirement we care about keeping you safe and making sure you have the coverage you need. Much of our effort last year continued our focus on your safety and protection...including these highlights: ONE OF AMERICA S BEST: For the 19th time in 20 years, Farm Bureau Life has been named one of the 50 most outstanding life insurance companies in America, based on strength, stability, and outstanding financial performance. The Top 50 List, prepared by the Ward Group, recognizes Farm Bureau Life for outstanding achievement in safety, consistency, and overall top performance. Very few companies have earned the honor as consistently as Farm Bureau Life. It means that your family, your future, and your retirement nest egg are always safe with us. OUR A.M. BEST RATINGS CONTINUE TO BE EXCELLENT: A.M. Best, the most well-known monitor of the insurance industry, has continued its rating of A (Excellent) for Farm Bureau Life and A-minus (also Excellent) for Farm Bureau Mutual and Farm Bureau General, our two property-casualty insurance companies. Our companies have earned the Excellent ratings consistently for the past several years. NEW LAKE ESTATE POLICY: Farm Bureau Insurance has introduced a new policy designed exclusively to protect lakefront homes and lakefront living in Michigan. The new Lake Estate policy is the first of its kind in Michigan.The product was introduced in May, and we ve already sold over 400 of the new policies. We have a history of meeting the special needs of Michigan residents. We developed the first Farmowners policy in the nation in 1960, combining all the needs of a farm operation into one package. Now we ve put all the needs of a lakefront home into one Lake Estate package. MICHIGAN S LEADING FARM INSURER: Farm Bureau Insurance continues its strong position as Michigan s number one farm insurer, protecting more Michigan farms than all our competitors combined. We protect about 70 percent of all the farms in Michigan. GROWING MARKET SHARE OF HOMES: According to figures released in July 2011 by the A.M. Best Company, Farm Bureau Insurance is gaining a larger share of the home insurance market in Michigan. We are now the 6th largest insurer of homes in the state, up from 7th a year ago. We also improved our ranking in commercial auto insurance, jumping from number 9 to number 8 in just one year. We continue to be the 7th largest insurer of personal autos in Michigan and the 7th largest writer of overall propertycasualty insurance in the state. page 8 MICHIGAN S INSURANCE COMPANY Safety of clients is top Farm Bureau Insurance concern Jim Robinson OUR PROPERTY-CASUALTY CHALLENGE: The entire property-casualty industry had a rough time last year, with record losses around the globe. Our property-casualty companies (Farm Bureau Mutual and Farm Bureau General) also had a challenging year, with increasing claims and more total loss house fires than usual. Overall, our propertycasualty companies remain strong and growing, but we are working to address some challenges. We will be inspecting about 40 percent of all the homes we insure to make sure the homes are properly covered. These inspections will be completed by the end of We will be especially alert for wood-burning stoves because they cause a significant number of fires in our state. We continue to stress how important it is to make sure wood stoves are properly installed, inspected, and maintained...and to make sure your agent knows about your wood stove. Your family s safety depends on it. NEW ROOF DISCOUNT AND SMART PAY: While our agents are making safety reviews of homes, they will also talk to clients about the new discounts available on our homeowners policy including our new roof discount and the smart pay plan that can save insureds up to an additional 15 percent. See your agent for details. FARM BUREAU LIFE MARKS 60 YEARS: The Farm Bureau Life Insurance Company of Michigan, one of Michigan s major life insurers, celebrated a big birthday in Born in September 1951, Farm Bureau Life marked 60 years of protecting Michigan families. It was the first company ever to specialize in the rural life insurance market in Michigan, bringing life insurance service right to the farmer s front door. Today it is one of the safest, strongest life insurance companies in America and provides nearly $12 BILLION of life insurance protection for the people of Michigan. Since its founding, Farm Bureau Life has paid out nearly $311 million in life insurance benefits and over $135 million in dividends to our policyholders. That s nearly half a billion dollars paid to Michigan families. LOCAL AGENTS, LOCAL SERVICE: We have more than 440 agents all across Michigan. Our agents live in the communities they serve, so our service is always local and always personal. We re proud that our agents provide so much security and peace of mind for the people of Michigan. Thank you, Farm Bureau members, for allowing us to serve you. As Michigan s insurance company we embrace our agricultural roots and take pride in the farm values that guide our company. Jim Robinson, Executive Vice President Farm Bureau Insurance jrobins@fbinsmi.com

9 Member Benefits Farm Bureau membership enables you to take advantage of the benefits listed below and many more. Call toll-free (888) or visit us online at Communication Member Publications Michigan Farm News is Michigan s only statewide farm publication. Distributed 20 times a year to all farmer members, it provides first-hand information about issues important to farmers. Benefits Advisor goes to associate members quarterly. For more information, visit Travel Roadside Assistance For unexpected traveling emergencies, help is just a phone call away. Contact your Farm Bureau Insurance agent or your county Farm Bureau for more information or visit www. michfb.com/benefits/roadside. Theme Park Discounts Receive discounted admissions to Michigan s Adventure, Cedar Point, Sea World, Busch Gardens, Kings Island, Six Flags Great America and more. Call (888) or visit Experience Michigan-Based Hotels & Resorts Exclusive member savings are available at the Bavarian Inn, Grand Hotel, Great Wolf Lodge, Treetops Resort, The Homestead, Crystal Mountain and more. Call (888) for more information or visit Farm Bureau Travel Farm Bureau Travel is ready to assist you in booking hotel accommodations, airline tickets, car rentals and more. Call (800) for more details or visit Health Blue Cross Blue Shield Health Insurance A variety of our member-only health insurance plan options are available through Blue Cross Blue Shield of Michigan. Call (888) for more information or visit Dental Insurance In addition to major services, preventative services such as routine exams, cleanings and x-rays are covered. Call (888) or visit Prescription Drug Discount Members who do not have prescription drug coverage can receive, on average, 30 percent off prescription drugs at many participating pharmacies. Call your local county Farm Bureau office for more information or visit benefits/prescriptions. Savings Ford $500 Bonus Cash Looking to purchase a new Ford or Lincoln vehicle? Enjoy $500 off the purchase price of eligible vehicles just by being a member. See your Ford or Lincoln Dealer for complete details and qualifications. For more information, visit www. michfb.com/benefits/ford. Grainger 10%+ Discount Members receive at least 10 percent off purchases through Grainger Industrial Supplies. Register for an account online using the Michigan Farm Bureau discount code and receive free shipping for all orders placed online. Visit Grainger online at BenePAY Payroll Services Members who own or operate their own business can enjoy hassle-free processing and the support of a client service representative who is dedicated specifically to their account. Choose from two unique packages with pricing starting as low as $30 per process. For more information, visit www. michfb.com/benefits/benepay. NEW Identity Theft Protection & Restoration Services Michigan Farm Bureau members can count on identity protection services powered by Identity Theft 911, America s premier provider of identity services, these fraud specialist services help detect and resolve identity theft and fraud. Contact us at (888) or visit benefits/idt911. Auto Value Service Center and Parts Discount Participating Auto Value Service Centers and Parts stores offer member-only discounts on over 500,000 parts, accessories, paint, tool as well as reliable professional automotive repair. To receive your savings coupon, visit us online at or call us at (888) Dunham s Sports Discount As a Farm Bureau member, you can receive 10% off your total purchase at Dunham Sports locations throughout the state of Michigan just by showing your Farm Bureau membership card. Exclusions do apply. See store for details. page 9

10 Departments and affiliates Digital Communications Website Over the coming year the IPR department will overhaul and boost the site s power with easier navigation, increased functionality and more options for personal customization. Social media Like our Michigan Farm Bureau Facebook page, on Twitter, subscribe to the Michigan Farm Bureau YouTube channel, and look for us on Google+ and LinkedIn as we expand into these networks. Electronic publications We continue to expand the electronic production of newsletters and other mailings, providing value and convenience with the growing use of QR codes and other communication technologies. Mobile apps and more Growth areas include the development of mobile applications and investments in other forms of technology that deliver timely and relevant information to our members. Contact Jill Corrin at (800) , ext or jcorrin@michfb.com. Media Relations Media relations staff supplies award-winning expertise to enable members to engage media and generate positive news coverage of issues impacting agriculture at the local, state and national levels. Staff also manages Michigan Farm Bureau s signature Adopt-A-Farm program, which helps members share agriculture s story with the general public through local media partnerships, as well as a county Farm Bureau newsletter program to keep members connected and informed locally. Contact Jeremy C. Nagel at (800) , ext or jnagel@michfb.com. Video Services Michigan Farm Bureau s Video Services Department provides multimedia support for all Farm Bureau events and corporate video services on a project basis for agricultural organizations. Four times a year Video Services produces FB Update, a video newsletter for Community Action Groups and county leadership. Contact Manager Rodger Meschke at (800) , ext or rmeschk@michfb.com. Young Farmer Department The Young Farmer Program offers leadership development experiences for members between ages 18 and 35. The Young Farmer Leader s Conference is an annual event that brings together 300 young farmers for a three-day informational, educational and fun experience. The program also recognizes young farmers for their agricultural knowledge, farming accomplishments and leadership skills through five individual leadership contests. Contact Manager Lori Chamberlain at (800) , ext or lchambe@michfb.com. Commodity and Marketing Department The Commodity and Marketing Department staff provides research, analysis and information on key commodity, marketing and economic issues; provides staff support for and maintains communications with 10 statewide commodity and marketing advisory committees; coordinates member participation in AFBF commodity advisory committees and works with university, Extension, government agencies and producer leaders in the wide variety of Michigan s commodities. Contact Manager Bob Boehm at (800) , ext or bboehm@michfb.com. Agricultural Labor & Safety Services ALSS offers on-site safety or labor reviews, including facility reviews or employment documentation and procedures review. The full-service program includes safety plan development, management and employee safety training, employment documentation review, two mock OSHA inspections, policy development assistance, facility siting reviews,, consultation services, and the ALSS Newsletter, which includes commodity and business focus, columns on key regulatory issues, safety program tools, and sample documents. Members may order vinyl labor compliance posting sets, including state and federal requirement postings. Contact Craig Anderson, Ag Labor and Safety Services Manager, at ext or canderso@michfb.com. The New International Trade Crossing, which would boost international agriculture trade between Canada and Michigan, would complement the Ambassador Bridge. Farm Bureau policy, as approved by voting farmer members, supports a second bridge across the Detroit River. In 2011, the P&E Committee celebrated 25 years of service (far left).

11 Promotion and Education (P&E) Educating consumers and promoting Michigan agriculture is the goal of Promotion and Education volunteers across the state. Volunteers address specific needs in their communities through P&E activities such as Agriculture in the Classroom, Agricultural Safety, local agricultural displays and more. Project RED (Rural Education Days) also promotes the vital link between farmers and consumers. Visit the P&E Web site at ProFILE Leadership Opportunities Farm Bureau s Institute for Leadership Education (ProFILE) is an in-depth leadership experience for a select group of agriculture s most promising future leaders ages The program provides participants with opportunities to sharpen their leadership skills and gain insight on how to impact issues affecting agriculture. Contact Managers Jenna Schrot at (800) , ext or jschrot@michfb.com, or Ryan Findlay at ext or rfindla@michfb.com. Agriculture Ecology Department (AED) The Agriculture Ecology Department (AED) provides Michigan Farm Bureau members with ecological and land use expertise. The Agricultural Ecology Department Website ( michfb.com/ecology) is home to breaking ecological issue information and information on upcoming events. Environmental issues are at the top of many governmental priorities, so the AED must prepare for coming issues such as new wetland regulations, endangered/threatened species, right to farm, the Michigan Agriculture Environmental Assurance Program (MAEAP), land use, water quality standards and a new conservation title in the next farm bill. Contact Manager Scott Piggott at (800) , ext or spiggot@michfb.com. Printing Services Department The Printing Services Department offers color or black-and-white copying and printing, as well as sign or banner printing. Variable Data Printing or One-to-One Marketing continues to be a significant growth area for the department. The Department now has the capability of producing color documents with dimensional printing, which gives the design a raised effect. Orders can be placed via the Web. Contact Karen Meyers, Business Manager, at (800) , ext or kmeyers@michfb.com. Michigan Agricultural Cooperative Marketing Association, Inc. (MACMA) MACMA assists asparagus and apple farmers in receiving the best price possible for their crops by negotiating between growers and processors, among many other functions. Michigan Asparagus Growers Division Contact Manager Ken Nye at (800) , ext Michigan Processing Apple Growers Division Contact Dawn Drake or Phil Pitts at , or visit Gov. Rick Snyder s first bill signed into law put the Michigan Agriculture Environmental Assurance Program (MAEAP) into statute. MFB s legal department works for you In 2011, the MFB legal department assisted in addressing legal issues relating to the following topics, as well as others: Michigan Agricultural Environmental Assurance Program (MAEAP) laws Antitrust laws in agricultural settings Provisions in farm contracts Oil and gas leases Wetlands laws and governmental interpretations affecting farmland Farmworker-related immigration laws Roundup Ready court cases on alfalfa and sugar beets Clean Water Act and definitions of federal jurisdiction Clean Water Act regulations relating to large livestock farms Clean Air Act law and regulatory developments Youth labor laws Occupational Safety and Health Act, rules, and governmental interpretations on applicability to farm activities Michigan Right to Farm Act issues with regard to urban agriculture New state tax laws relevant to agriculture Legal Defense Fund The Michigan Farm Bureau Legal Defense Fund is designed to provide financial support in connection with legal issues of common concern to Michigan agriculture and, in particular, those issues where the decision will be viewed as establishing an important legal precedent. During 2011, seven applications were reviewed by the Legal Defense Fund Committee, made up of farmer members. A total of $8,000 was expended in grant money Contact Andy Kok at (517) or akok@michfb.com. page 11

12 Copper Country District 1: Brigette Leach, Climax District 2: Brent Hotchkin, Concord District 3: Michael Fusilier, Manchester District 4: Paul Koeman, Hamilton District 5: Alan Garner, Mason District 6: Carl Bednarski, Caro District 7: L. Charles Mulholland, Coral District 8: Michael Mulders, Essexville District 9: Ben LaCross, Cedar District 10: Patrick McGuire, Ellsworth District 11: David Bahrman, Rumely 2012 Board of Directors At-large directors: Wayne H. Wood, Marlette Jennifer Lewis, Jonesville Douglas Darling, Maybee Andy Hagenow, Rockford Young farmer representative: Brian Preston, Quincy Promotion and Education: Larry Walton, Sturgis Iron Range 11 Hiawathaland Bahrman Menominee Mason Oceana Mac-Luce Schoolcraft Benzie Manistee Lake (Osceola) 7 McGuire Antrim Emmet Charlevoix LaCross Northwest Kalkaska Michigan 9 Wexford Missaukee Osceola Mecosta Chippewa Clare Isabella Cheboygan Otsego Crawford (Otsego) Roscommon (Ogemaw) Gladwin Midland Montmorency Oscoda (Montmorency) Ogemaw Presque Isle Bay Arenac Mulders Huron Shores Iosco Tuscola Newaygo Muskegon Bednarski Saginaw Mulholland Gratiot Montcalm Hagenow Lapeer Shiawassee Genesee Ottawa Kent Ionia Clinton 5 4 Allegan Ingham Oakland Barry Eaton Livingston Koeman Garner 3 Leach Jackson Washtenaw Wayne Van Buren Calhoun Kalamazoo Hotchkin Fusilier 1 2 Darling St. Joseph Branch Berrien Cass Lewis Lenawee Walton Preston Monroe Hillsdale 8 10 Huron 6 Sanilac Macomb Wood St. Clair Michigan Farm Bureau s 2012 Board of Directors consists of, seated in front, Executive Committee members from left, Andrew Hagenow, Michael Fusilier, President Wayne H. Wood, Carl Bednarski and David Bahrman. Standing from left are Treasurer and Chief Financial Officer Doug Kammann, Brent Hotchkin, Doug Darling, Patrick McGuire, Paul Koeman, Michael Mulders, Brigette Leach, Larry Walton, Charles Mulholland, General Counsel Andrew Kok, Brian Preston, Ben LaCross, Jennifer Lewis, Chief Operating Officer John VanderMolen, and Alan Garner. Absent from the photo is Farm Bureau Insurance Executive Vice President Jim Robinson.