INVEST IN OUR FUTURE!BY NATE FRANZEN, AGRI-BUSINESS DIVISION PRESIDENT

FirstDakotaAg.com

NEWSLETTER

D e c e m b e r 2 0 1 8

FirstSource for news about First Dakota’s COMMITMENT TO AGRICULTURE

AGRIVISIONSDemographic trends continue to impact rural communities. Consolidation is happening in many industries and agriculture is no different. As these trends continue, the importance of our Ag industry is becoming more and more evident, especially in the most rural areas. In these communities - farmers, ranchers, and related Ag industry makeup the backbone of their viability. Without them many towns would no longer exist. The holidays are often referred to as a time for giving. Giving, otherwise known as philanthropy, comes in many forms. At First Dakota, we intentionally give of our time, talent and resources. It’s part of our mission statement and our team embraces that commitment and lives it daily. As I look across the rural areas of our region, I see a definite need. A need for more philanthropy.

You might be thinking to yourself, why is Franzén talking about this in these thin margin, more volatile times in agriculture? As you might expect, the First Dakota Ag team is keenly aware of these challenges. We are working hard with our clients to help best position them and us for survival and success. This demands our focus to be in the moment; however, we can’t lose sight of the future. Philanthropy is often an investment in the future. We give of our resources today to make for a better tomorrow.

I assure you at First Dakota we haven’t lost sight of the future. We remain firmly committed to the future of Agriculture. So much so that in recent years our company, owners, management team and employees have donated over $8 million to Agriculture’s future. We view these donations as investments. Investments in our Ag industry. Investments in our future. Investments that will make a better tomorrow. Some of the beneficiaries of these investments include the SD Cattlemen’s Foundation, the SDSU Cow/Calf research facility, the SDSU Precision Ag facility, the Stockyards Ag Experience, SD Ag & Rural Leadership (SDARL), the South Dakota State Fair 4-H building, the SDSU First Dakota National Bank eTrading Room, the SDSU Ness School of Management & Economics and the SD Ag Foundation. We’re proud of these investments in our future and know they will pay dividends for us all.

Agriculture is a capital intense business. We often reinvest our resources back into the farm or ranch. Often times back into the land. But I challenge you to think differently. We must recognize our farms and ranches don’t end at our fence lines. Consumers are paying attention. Our actions speak louder than our words. What are your actions saying? As we go through this holiday season, we challenge you to consider and reflect on your giving, your philanthropy. Whether it be time, talent or resources. Is it focused strategically to help make the future better? There are many options and many worthy ways to give. Make your investment count. I encourage you to give what you can and help make the future as bright as possible.

On behalf of our entire Ag Banking team, thank you for all you do. Thank you for paying it forward, and thank you for your business. We wish you a very Merry Christmas and blessed New Year.

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THE JOURNEY OF SIMPLICITY TO COMPLEXITYTHE KEITH AND LESLIE REUER TRANSITION PLAN

Keith and Leslie Reuer are 3rd generation farmers. They have been First Dakota customers since 2002 and are currently involved in the Keep Farmers Farming program. Throughout their journey, they have been through many challenges which would drive most to leave the industry. In thinking about why they stayed - Keith said, “Taking Leslie and me off the farm would have been bad, but taking our kids away from the lifestyle they knew and loved would have been the hardest.” The passion they all have for the farm and their commitment to the hard, rewarding work they do every day is evident when you meet them. From the organized work-glove storage, to the delicious homemade kuchen that is ready for guests. Keith mentioned several times he wasn’t sure why Leslie has stayed during some of the harder situations they have been through. Yet, it is plain to see, it was and is love. The love they share for each other and for their work is evident when you meet them and radiates from their home. They are a strong team, and although Keith will often reference “I”, he quickly notes that he always means “We” - as their teamwork is what keeps them going.

As Keith put it, the “wrecks” they’ve had in the past and the uneasy and delayed transitions they’ve worked through are a couple of the factors that led them to seek the assistance of Alan Hojer (Manager and Legacy Consultant for the Keep Farmers Farming Program). They were looking for help with estate planning and now Alan is assisting in their ongoing needs for their farm transition. Alan stated, “The Reuer’s have their own unique story, as does every operation. What sets the Reuer’s apart from many is their willingness to work at the growing pains of their opera-tion as they experience continued operational growth - which leads to greater business complexity. Understanding the journey from simplicity to complexity is the motivator that drove the Reuer’s to seek the advice of their Ag Lender, Marty Michalek, which led to the introduction of myself and the services of Keep Farmers Farming.”

The Reuer’s have worked with Marty Michalek of First Dakota Chamberlain since 2008 and Keith said, “Marty is one of the best bankers we’ve worked with and as for First Dakota, you just don’t see other banks doing this. If you want to shop around for the best interest rates go ahead, but we want someone we can trust and someone we can work with. The services First Dakota offers, the relationships we’ve built with Marty, and the programs offered through Keep Farmers Farming far outweigh any small savings in an interest rate.” Since working with Marty and Alan, Keith said, “We can finally sleep at night knowing our affairs are in order. The relief makes doing business a hell of a lot easier!” In thinking about the 4th generation coming back to the farm, the Reuer’s want to lead through the transition and make it a smoother one than those they have been a part of or have seen in the past. Leslie said, “It’s important to note just because we are starting a transition plan, it doesn’t mean we are quitting or retiring or anything. It’s important to us to have a plan going forward, one we will most definitely be a part of, where communication is open, and everyone can be on the same page.”

Alan stated, “Leadership is the key to any successful operation.” This is something the Reuer’s are embracing and providing for the future of their operation and their children. Every operation needs this parental leadership that leads to a collaborative partnership with their family to be successful.

Happy Holidays!

Our Ag Banking team wishes you all the joys of the Christmas season and happiness throughout 2019.

Save the Date - Mark your calendarWEDNESDAY, FEBRUARY 20, 2019Sioux Falls, SD

10:00AM - 10:30AM registration 10:30AM Chad Colby and Travis Potter lunch following

WEDNESDAY, FEBRUARY 20, 2019Mitchell, SD

6:30PM - 7:00PM registration 7:00PM Chad Colby and Travis Potter ice cream social following

THURSDAY, FEBRUARY 21, 2019Pierre, SD

10:00AM - 10:30AM registration 10:30AM Chad Colby and Travis Potter lunch following

Watch for your postcard or email invite with complete details.

THURSDAY, FEBRUARY 21, 2019Yankton, SD

6:30PM - 7:00PM registration 7:00PM Chad Colby and Travis Potter ice cream social following

AGRIVISIONS 2019

featuring Chad Colby and Travis Potter Chad Colby is the founder and principal of Colby AgTech, where he works with progressive farmers, leading companies, and government agencies to provide deeper understanding of new technologies and recommendations on its practical applications. Colby shares his knowledge and passion of agriculture by having one of the largest social media footprints in agriculture. Colby shares his ag technology expertise through speaking engagements in the U.S. and across the globe, as well as through his social media venues. He provides field reports and a weekly segment on technology on the TV program “This Week in Agribusiness” hosted by Max Armstrong and Orion Samuelson. He resides in Goodfield, IL. More information can be found at www.colbyagtech.com

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To enhance something is to heighten or make it better. What changes are you making in your operation to enhance your success? Come listen to the experts for ways you might make your operation more successful than you are today.

Enhancing success!

Travis Potter , Founder of Tractor Soda Company, has spent his entire life working in agriculture as a farm-er and pioneer in the organic food industry. Travis was in organic farming before it was even called organic farming. He pioneered the first organic beef ranch and artisan meat company. He has done everything from working in the organic yogurt industry to non-dairy desserts and organic ice cream. Travis currently lives in Northwest Idaho with his wife and 11 kids. Travis is leading the way for agriculture in the current farm to fork movement in many companies like Land Back, Agopolis, 52 Fresh, and Frontier Protein.

225 Cedar Street PO Box 156 Yankton, SD 57078

PRSRT STDUS POSTAGE

PAIDYankton SD

57078 Permit No. 16

ADDRESS SERVICE REQUESTED

First Dakota Convenient Locations In South Dakota… Beresford 605-763-2135Blunt 605-962-6231Chamberlain 605-734-5555 Elk Point 605-356-0289 Kimball 605-778-6218 Mitchell (North) 605-996-3364 Mitchell (Norway) 605-996-3364 Oacoma 605-234-5005 Parkston 605-928-3077Pierre 605-224-5817 Salem 605-425-3111 Sioux Falls (Downtown) 605-333-8200Sioux Falls (East) 605-333-8282Sioux Falls (Louise) 605-333-8295Sioux Falls (South) 605-333-8210Vermillion 605-624-5555Wagner 605-384-5456Yankton (Downtown) 605-665-7432Yankton (North) 605-665-4999

Loan Production Offices Columbus, NE 402-563-2326Corsica, SD 605-946-5888 Hastings, NE 402-463-4637 Ogallala, NE 308-284-3260 Platte, SD 605-337-2154Watertown, SD 605-753-5880

The South Dakota Agricultural Foundation is an independent, industry-led nonprofit composed of key leaders in the South Dakota Ag industry. The Foundation is committed to cultivating a culture of philanthropy that works with and serves all in the South Dakota Ag industry. Foundation investments will be guided by a focus on: • human capital• workforce development• industry development and diversification • working lands conservation• promotion of and service to the agriculture industry

Earlier this year, the South Dakota Agricultural Foundation accepted a five-year challenge to raise an additional $4 million for future support of South Dakota’s agriculture industry. Funds raised by the SD Ag Foundation will be

matched by an additional $1 million in funds from the South Dakota Community Foundation (SDCF) and SD Governor Dennis Daugaard.

In support of the SD Ag Foundation, POET announced their commitment of $250,000 towards the 1:4 matching challenge. Since its inception in 2016, the SD Ag Foundation has received commitments totaling more than $4 million dollars. In 2018, the Foundation supported 23 Ag related organizations with grants totaling just under $35,000.

For more information on the SD Ag Foundation, visit the website at www.sdagfoundation.org or contact Chris Maxwell,(605) 280-2895 or chris.maxwell@sdagfoundation.org.

SUPPORT THE SOUTH DAKOTA AG FOUNDATIONINVEST IN OUR FUTURE