April 1, From the Desk of Adam Boryca, Cozad Branch

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1 April 1, 2014 Markets: by Eric Ide Where we were compared to where we are Live Cattle (Apr): $ $ $ $ $ Feeder Cattle: (Apr): $ $ $ $ $ Steers: (6 wt avg.): $ $ $ $ $ Heifers: (6 wt avg.): $ $ $ $ $ Corn (May): $ 5.05 $ 6.95 $ 6.46 $ 7.12 $ 3.78 Beans (May): $ $ $ $ $ 9.51 Drought From the Desk of Adam Boryca, Cozad Branch This is a word that nobody likes to hear, but in this case could be different. I was talking to the FSA director the other day at a meeting and he stated that FSA is coming out with an Emergency Drought Assistance Payment. He told me that if you have any producers that have livestock, and have seen a loss due to the drought, that the FSA office could have a substantial payout to the producer. I did talk to another FSA office just on April 1st and they stated that there will be a drought assistance payment to livestock producers, but they do not know much about the program to date. The FSA office

2 April 1, 2014 Page 2 stated that the training on this new program will take place the week of April 7th and the soonest they are taking appointments are April 16th, The lady I talked to stated that the only thing they know about the program is that the producer will have to prove that they had a financial loss in their livestock enterprise due to the drought. On one of my customers, he and I reviewed his tax returns and his financial statements and we could prove that this producer had a financial loss due to the drought of 2012 and I am not sure what he may or may not receive from FSA for a disaster payment, but at least he is prepared to go into them with hard numbers to present his case. All livestock producers should contact their local FSA office and see if your county was declared eligible for the Emergency Drought Assistance Payment for Livestock Producers. This could be an opportunity to receive some financial assistance for any losses due to the drought. Whiskey is for drinkin and water is for fightin From the Desk of Richard Johnson, Lexington Branch Here in Dawson County we are considered over appropriated in this section of the Platte River basin. I sat on a committee for 3 years trying to develop a sustainability plan to get back to a level of water use from the 1990 s. All I can really say about those three years is I found out how little I know about water. I grew up on a surface water irrigated farm (CNPPI), watching my Grandfather and the neighbor fight about runoff. I remember standing at our north fence with the neighbor and Grandpa yelling at each other because our irrigation water was running on to him. Simple solution, Grandpa built a small dam (doubt he even considered getting any permits) to hold the water back in our stock pond. Wouldn t you know, neighbor was yelling again because Grandpa built the dam! I don t really know who was right or wrong back in the 50 s when this incident occurred (yes, I remember the 50 s Mike). Later, in the 80 s, one of my landlord s got into it with a different neighbor over how close he could drill a new well to the one we had established. This year there have been several contentious moments in the Nebraska Legislature concerning water issues. (I have been personally contacted by both sides of LB1074 to advise our 38th district legislator how to vote.) In my opinion, there will always be disagreements over water. At this point in our history it has become very apparent that water is our most valuable natural resource. Not only producers but also business people must be aware of what s going on with water in Nebraska. Be as informed as you can. As I alluded to earlier, water is a very complicated subject, not easily digested. Do your best. Our future depends on it. Field work is pumping up, be careful.

3 April 1, 2014 Page 3 This is Spring? From the Desk of Mike Horn, St. Paul & Wolbach Branches Well, since the NCAA basketball tournament is going on, it s technically Spring. But, like my bracket picks seem to have blown up, Spring seems to have vacated the premises. As I type this on March 31 in the middle of the afternoon, it is a brisk 36 degrees and falling. I planned on turning my sprinkler system on, but maybe that will wait for a few days. I have seen several folks out disking and putting on anhydrous, so hopefully that s a sign of a warm-up on the horizon. With the coming of Spring and planting season many farmers and ranchers are already thinking a season or two ahead; and rightly so. Things are very volatile in the grain markets. We re heading into the year under dry conditions and the pattern doesn t seem to want to break. We ve had one major grass fire already and with the windy weather, we seem poised for more. So, as a cattle producer, will your pasture bear up through the year? Will you be forced to by forage at increasing prices? As a grain farmer, will your previously selected crop insurance coverage levels be sufficient if we re-enter a full blown drought? We don t have a crystal ball, so those answers will only be seen as the year plays out. As you ve all heard before, the only thing certain about agriculture is uncertainty. Hopefully the plans you laid out a season or two ago will be able to withstand the variables that we can only guess at. May you all have a safe and timely planting season. From the Desk of Kevin Hoffart, Schuyler Branch As we transition from Winter to Spring and out of March Madness to the opening of the Major League Baseball season, I see similarities between farming and baseball or any sports season. At this time of year, last year is complete and every team in baseball is optimistic about the season. Some changes have probably been made and expectations are high and excitement abounds. It is similar with farming at this time of year. Last year s harvest is long behind us and preparation for another year is upon us with probably a few changes. Optimism is high and expectations are too. The manager is trying to put his team in a position to be successful and the farmer is managing his operation to have success. Baseball players are often called the Boys of Summer and will experience the Dog Days of Summer. Grain farmers are the men of summer and know too well about those hot, dry dog days of summer. The weather can affect both activities, you can have weather delays or total rain outs and you can have beautiful days full of sunshine and light winds. The ultimate harvest for baseball is in October and harvest for farmers is in high gear during the same month. Farmers don t need to be World Series Champs to have a successful season, but a good crop is their goal and reward for hard work. Good luck to the boys and men of summer, we hope your team is successful. In conjunction with the baseball theme, I would like to give a tip of the cap to Gaylord Wilcox. This will be the last newsletter published before he retires at the end of the month. He has been a great asset to the bank

4 April 1, 2014 Page 4 for many years and will be missed by coworkers and customers alike. We wish all the very best for Gaylord in his retirement and look forward to still seeing him from time to time. From the Desk of Dan Lueken, Albion Branch I recently went to the Boone/Nance Cattlemen s banquet at the Event Center here is Albion and was impressed with the generosity of the people in this organization and its supporters. They served 340 prime rib dinners with a live auction, raffle and a comedian. They also presented five $500 scholarships to local seniors. Three of the current candidates running for the Nebraska Republican Governor bid were in attendance. Everyone had fun and this is a group that is dedicated to helping and improving area communities. Bank Services From the Desk of Bob Ritzdorf, Howells Branch Recently the bank asked everyone to review the services the bank has to offer customers to see if there were any updates or changes from a year ago. Honestly, I need to review this every once in a while because it s quite a long list. Some of the services we provide are loans of all types, savings and checking accounts, Certificate of Deposits, Individual Retirement Accounts, even insurance and investments. We also provide on-line banking, mobile banking, ATM Service, Money Orders, Cashier Checks, Check Imaging, Wiring, Remote Deposits, ACH, Direct Deposit and on and on. We are truly a full service bank. In addition to all these things, we have common sense experienced bankers that will go the extra mile in giving you advice and help in many financial matters. In our community bank we can tell you where to go for lunch at noon, which church has Saturday services, where to buy fuel or give you the latest weather forecast.( Just kidding, but sometimes it s true) The point is we enjoy visiting and helping our customers. We have helped many customers with many financial questions that come up almost daily. As shown above with our services you may be quite surprised on all the things a community bank can do for you. We are here to serve you, so don t be afraid to call or stop by with a question. Homestead Bank your journey your life. From the Desk of Justin Schneider, Homestead Insurance We have had quite a few questions on planting dates. The earliest planting date for corn in Dawson, Frontier, Gosper, Phelps, and Custer is 4/10/14 and for soybeans is 4/25/14. Please keep in mind there is no

5 April 1, 2014 Page 5 replant payment on your MPCI policy if you have planted before the early planting date. If you are planting in a county not listed, please check with your agent on plant dates. Before you get too busy in the field make sure you have your 2013 production to us. Most of you have, but there are still a few who have not. Those yields have to be reported by the 29th of April. Your multi-peril crop insurance policy provides coverage if you are prevented from planting a crop. Hopefully that will not be an issue, but remember that if it is, you have to notify your agent immediately if you have a planting issue. For those of you, who have any winter wheat; please remember that you cannot destroy any crop until it has been appraised. If you think you have some that you will not be taking to harvest, please let us know just as soon as possible and before you do anything with it. With calving season coming near an end, keep in mind we do sell Livestock Risk Protection (LRP). LRP Insurance offers price risk protection on feeder and fed cattle. Producers are able to protect against declining cattle prices. In the past LRP has been cheaper than buying a put option and you can deduct LRP from your taxes. If you are interested, please let me know. All prices, rates, and information are collected from different sources. Information is not guaranteed and is intended for informational purposes only.