The acronyms SCO and ECO refer to add-on coverage options within federal crop insurance that increase protection beyond what a standard policy provides. They work differently than your underlying policy coverage, and that difference affects when and how you get paid.

Here's a breakdown of what SCO and ECO are, how they work, and whether they might make sense to add onto your policy.

What are SCO and ECO?

SCO (Supplemental Coverage Option) and ECO (Enhanced Coverage Option) are endorsements (add-ons) attached to an existing crop insurance policy. They increase the percentage of expected revenue or yield that is protected under the policy. 

• SCO is a county-based base coverage protection of up to 86% of expected revenue or yield.
• ECO is county-based protection even higher, protecting up to 90% or 95% of expected revenue or yield.
• These follow the protection plan your underlying policy has either revenue protection or yield protection. However, there must be a county-wide loss to trigger indemnity payments. When indemnities are triggered, they are paid at your individual crop value. 

The biggest difference between traditional crop insurance and SCO and ECO endorsements

Unlike your underlying policy, both SCO and ECO provide indemnity payments (the compensation paid when coverage is triggered) based on the county’s average revenue or yield, not your farm’s individual results. 

This means that the government: 

• Calculates the average performance for all insured acres of that crop in your county.
• If that county average falls below the selected coverage level, an indemnity is paid. 
• If it does not, no indemnity is paid, even if your farm experienced an individual loss. 

How SCO Works

Think of SCO as coverage that fills the gap between whatever % your underlying policy covers and 86% of expected county revenue or yield. The federal government covers 80% of the SCO premium, making it a cost-effective way to add a layer of coverage.

Here's a simplified example of how it layers on top of an existing policy:

• Your underlying policy might cover you at the 75% level, meaning you start receiving a payment when your individual loss drops below 75%.
• The gap between 75% and 86% is normally unprotected.
• SCO covers that gap, but only when the county also experiences a loss that drops below 86%.

How ECO Works

ECO functions similarly to SCO but offers a higher level of coverage and a bit more flexibility. ECO is designed to sit above SCO, covering the gap from 86% up to 90% or 95% of expected county revenue or yield, depending on what premium you select. 

Because of this broader protection band, ECO premiums are higher than SCO, but the government still subsidizes 80% of the premium for both coverage levels. 

Like SCO, ECO is based on county performance rather than individual farm performance.

SCO vs ECO: A Quick Comparison

Who Can Qualify for SCO and ECO Endorsements

SCO and ECO are available to producers who:

• Have a qualifying underlying crop insurance policy (such as Revenue Protection or Yield Protection)
• Are growing an eligible commodity. The list of eligible crops has been expanding in recent years, so even if you checked a few years ago and weren't eligible, it may be worth asking again
• Purchase the endorsement by the sales closing date for their primary policy

Why Producers Are Paying Attention

A few factors have made SCO and ECO especially relevant in recent years:

1. Commodity price volatility. When prices swing dramatically, even well-managed farms can face revenue shortfalls. County-level endorsements provide another layer when whole regions are affected.
2. Input cost pressures. With higher input costs, the margin for error is tighter than it used to be. Reducing the deductible gap — what you're exposed to between your policy coverage level and 86% or 95% — can make a real difference.
3. Expanding eligibility. More crops are becoming eligible for SCO and ECO, meaning more producers than ever have access to these tools.
4. Relatively low out-of-pocket cost. With the government covering an increased portion of the premium, the cost-benefit equation can be favorable — especially in years when county-wide events like drought or flooding affect broad geographic areas. It is the cheapest risk-management option on the market. 

SCO & ECO Work Best Against Widespread Events

SCO and ECO aren't for everyone. Because they're triggered by county-level performance, they work best as protection against widespread events rather than isolated farm losses. Since these are activated by county-level results, they function most effectively as safeguards against broad occurrences, not individual farm damages. 

That said, these endorsements can work very well in certain situations, so the decision really comes down to whether they make sense for your specific county and risk management needs.

Talk to Your Agent 

SCO and ECO crop insurance endorsements can be valuable tools, but they're not one-size-fits-all. The right combination of underlying policy, endorsement level, and farm program election depends on your specific crop mix, your county's loss history, and your risk tolerance.

Your Farm Credit team is here to help you think through the options. We offer free current policy reviews to help you better understand your existing coverage and explore how SCO and ECO may fit into your overall risk management plan. Reach out to your local crop insurance agent to find out if SCO, ECO, or both make sense as part of your coverage plan this year.

Crop insurance is sold and serviced by licensed agents. Coverage options and eligibility may vary by crop, county, and policy type. Consult your agent for details specific to your operation.

This content is provided for informational purposes only and is not intended to serve as investment, tax, accounting, or legal advice, nor as a substitute for the advice of qualified professionals.

The information presented reflects assumptions, source materials, and conditions as of the time of preparation and may be incomplete, inaccurate, or subject to change. Horizon Farm Credit does not endorse and is not responsible for the accuracy of information provided by third‑party sources referenced in this content.

Nothing presented here constitutes, or should be construed as, a commitment to lend or to provide any financial product or service. In no event shall Horizon Farm Credit be liable for any actions taken or decisions made in reliance upon, or use of, the information contained in this content

Markets move sharply as headlines and global uncertainty continue to shape the agricultural economy. In this Ag Econ Update, Tyne Morgan is joined by Arlan Suderman, StoneX Chief Commodities Economist, to discuss what is driving grain, livestock, and input markets — and how producers can approach marketing decisions as the 2026 growing season unfolds.

Below are the key takeaways from the conversation. 

🔑 Key Takeaways from the Video

Grain Markets Respond to Headlines

Grain markets react day-to-day to headlines, especially those tied to conflict in the Middle East and concerns around the Strait of Hormuz, an important shipping route for energy and fertilizer.

Suderman explains that disruptions in this region reduce energy and fertilizer availability, creating long‑term inflation risk and lowering future production capacity. While this is not an immediate supply issue, it remains a concern beneath the surface.

Even if conflict eases and shipping routes reopen, Suderman notes that energy and fertilizer prices take time to normalize, keeping longer‑term risks in play.

Large Supplies Limit Price Rallies

Current supply levels make sustained price rallies difficult unless new threats emerge.

• Corn: A carryout near 2.1 billion bushels limits upside potential based on historical pricing patterns.
• Wheat: Domestic and global supplies remain large, even with drought affecting parts of the U.S. hard red winter wheat belt.
• Soybeans: Supplies remain adequate, though recent biofuel policy announcements provide some support to the soybean complex.

When crude oil prices fall or war‑related concerns fade, Suderman says markets often pull back. 

Inflation Still Influences Markets

Inflation risk continues to affect commodity markets, even when it does not dominate headlines.

Suderman explains that when investment funds believe inflation matters, they buy commodities with the strongest historical connection to inflation — namely grains and oilseeds, followed closely by energy. When inflation fears ease, funds tend to exit just as quickly. 

Weather Creates Potential — but Not Today's Focus

Weather remains one of the few forces capable of pushing prices higher if it threatens production.

Suderman notes forecasts calling for El Niño, possibly a strong one, but reminds producers that weather models can be wrong.

Based on his comments, El Niño typically:

• Favors good growing conditions in the U.S.
• Increases risk in the North China Plain
• Raises concerns for Australia
• Looks relatively favorable for Brazil

He says this makes it difficult to worry about corn or soybeans right now, though wheat may become more sensitive depending on Southern Hemisphere conditions. 

Wheat Markets Watch the World, Not Just the U.S.

Poor wheat conditions in Texas and Oklahoma do not move prices significantly because global markets focus elsewhere.

Suderman points out that:

• The Black Sea region sets world wheat prices
• Markets react more strongly to Europe and the Black Sea than to U.S. conditions
• The U.S. holds a significant wheat surplus

The U.S. ends the marketing year with roughly 58% of a year’s supply of hard red winter wheat, allowing the market to absorb losses unless global production issues develop.

Biofuels Support Long-Term

Biofuel policy plays a key role in long‑term demand, particularly for soybeans.

Suderman explains that finalized Renewable Fuel Standard volumes do not create an immediate rally but help raise the price floor, limit downside risk, and increase sensitivity to weather‑related scares.

For corn, year‑round E15 does not solve current oversupply but supports long‑term domestic demand, especially as global fuel shortages increase ethanol exports.

China Trade May Shift Beyond Soybeans

“We have to be defensive in our marketing — knowing our margins and keeping some flexibility for when opportunities come.”
— Arlan Suderman

With markets in a lower-price cycle and rallies often short-lived, Suderman encourages producers to protect margins, focus on long-term viability, and remain flexible rather than chasing uncertain prices moves.

Looking for more market insight?

Check back for future Ag Econ Updates and expert perspectives on the forces shaping agriculture today.

This content is provided for informational purposes only and is not intended to serve as investment, tax, accounting, or legal advice, nor as a substitute for the advice of qualified professionals.

The information presented reflects assumptions, source materials, and conditions as of the time of preparation and may be incomplete, inaccurate, or subject to change. Horizon Farm Credit does not endorse and is not responsible for the accuracy of information provided by third‑party sources referenced in this content.

Nothing presented here constitutes, or should be construed as, a commitment to lend or to provide any financial product or service. In no event shall Horizon Farm Credit be liable for any actions taken or decisions made in reliance upon, or use of, the information contained in this content 

Highly Pathogenic Avian Influenza (HPAI) continues to pose a significant threat to poultry operations across the country each winter. With Pennsylvania, Maryland, Delaware, Virginia, and West Virginia home to a high concentration of commercial and backyard poultry farms, maintaining strong biosecurity practices remains essential to protecting flocks and reducing disease spread.

Whether you manage a commercial poultry operation or maintain a backyard flock, implementing strong biosecurity measures is your best defense against HPAI this season.

Why HPAI Is a Serious Risk for Poultry Farms

The H5N1 strain of HPAI is widespread in wild bird populations, and the stakes are especially high for poultry producers.

• Farm poultry are highly susceptible to HPAI, with mortality rates approaching 100%.
• Layer operations can experience catastrophic production losses, with sudden drops in egg production often serving as the first visible sign.
• Broiler operations can lose entire houses within 48 to 72 hours of virus introduction.
• The virus spreads rapidly in high-density operations, making early detection critical.
• Winter months are peak transmission periods as migrating wild waterfowl increase virus circulation.

Common Signs of HPAI in Poultry

Farmers should watch for these common signs of avian influenza in chickens and other poultry:

• Sudden death without prior symptoms
• Lack of energy and appetite
• Sharp drops in egg production
• Soft-shelled or misshapen eggs
• Swelling of the eyelids, comb, wattles, and shanks
• Purple discoloration of combs and wattles
• Gasping for air or difficulty breathing
• Nasal discharge, coughing, or sneezing
• Twisting of the head and neck
• Greenish diarrhea

How to Prevent HPAI With Strong Biosecurity Practices

The following biosecurity practices form your frontline defense against HPAI. Each layer of protection reduces the likelihood of virus introduction to your flock.

1. Control Access and Movement

The most critical step is limiting who and what enters your chicken houses.

For Commercial Operations

• Establish a single controlled entry point for each chicken house complex.
• Require all personnel to shower in and shower out if your operation has those facilities.
• Provide company-supplied coveralls, boots, and hairnets that never leave the premises.
• Consider designated footwear for each house to prevent cross-house contamination.
• Prohibit employees from keeping backyard chickens at home, or establish strict protocols if unavoidable.
• Ban all non-essential visitors, including feed company representatives, from entering houses.
• Implement a 24-hour downtime between farm visits for service technicians and veterinarians.
• Park delivery trucks outside the perimeter and transfer materials at a designated clean zone.

2. Prevent Wild Bird Contact

Wild waterfowl are natural reservoirs for avian influenza and pose one of the greatest external threats to your chickens.

Critical Actions

• Keep chickens confined during HPAI season in alignment with your integrator’s requirements.
• Eliminate puddles or standing water around chicken houses that may attract wild ducks and geese.
• Secure feed bins with tight-fitting lids and repair any holes where sparrows and starlings can access feed.
• Remove spilled feed daily from around outdoor silos and feed delivery areas.
• Install bird spikes or netting on roof peaks and beams where wild birds roost.
• Fill in low-lying areas near chicken houses that collect water after rain.
• If you have decorative ponds nearby, drain them or install netting during migration season.
• Screen all ventilation openings with 1-inch or smaller mesh while maintaining adequate airflow.
• Position automatic waterers inside houses rather than outside where wild birds can access them.

For Layer Operations

• Collect eggs frequently to avoid attracting crows and other scavengers to outdoor nests.
• Secure composting areas where wild birds might forage for insects.

3. Implement Clean and Dirty Zones

Create a “Danish entry” system with a clear physical line separating the outside world from your chicken houses.

House Entry Protocols

• Install a bench or barrier at each chicken house entrance to create a clear dividing line.
• Use one side for outside boots and the other side for dedicated house boots. Never let them cross.
• Use disposable boot covers over dedicated boots for an added layer of protection.
• Maintain footbath stations at every entrance with EPA-approved disinfectants.
• Replace disinfectant daily or whenever it becomes visibly contaminated.
• Scrub boots clean of visible manure and dirt before stepping into disinfectant.
• Provide coveralls or Tyvek suits that stay inside each chicken house.
• For multi-house operations, do not share protective gear between houses.

Hand Hygiene

• Wash hands before entering houses and after handling chickens, eggs, or manure.
• Place hand sanitizer stations at each entrance for use after handwashing.
• Keep a spray bottle of disinfectant at entrances for sanitizing clipboards, phones, or tools.

For Broiler Growers

• Maintain separate equipment for each house.
• Do not share catchers, feeders, or tools between houses.
• If equipment must be shared, clean and disinfect it thoroughly between moves.

4. Protect Feed and Water Sources

Feed Delivery Biosecurity

• Keep feed trucks outside the bird area perimeter whenever possible.
• Use dedicated augers or conveyors that do not enter the house.
• Inspect delivered feed for signs of wild bird contamination, such as droppings or feathers.
• Store feed in enclosed bins rather than open-top bulk bins.
• Clean up all feed spills immediately around silos and feed lines.

Water System Protection

• If using well water, ensure well caps are secure and screened against bird entry.
• For surface water sources, install proper filtration and consider UV treatment.
• Clean water lines regularly according to manufacturer recommendations.
• Prevent wild bird access to water storage tanks.

5. Egg Handling and Transport

• Collect eggs multiple times daily to minimize time spent in nests.
• Use dedicated egg carts or flats that are sanitized between uses.
• Never reuse cardboard egg flats because they cannot be properly disinfected.
• Establish a clean egg room separate from the chicken house entrance.
• Sanitize plastic egg flats with approved disinfectants and allow them to fully dry.
• Instruct egg truck drivers to stay in their vehicles or use designated clean zones.

6. Mortality Management

Proper dead bird disposal helps prevent disease spread and reduces scavenger attraction.

Daily Protocols

• Remove dead chickens immediately, at least twice daily.
• Use a dedicated mortality cart or container with a tight-fitting lid.
• Never drag dead birds across the floor. Use a cart or bucket to prevent virus spread.
• Dispose of mortalities promptly through composting, incineration, or burial according to local regulations.
• Keep composters covered and secure to prevent wild bird and rodent access.
• Maintain detailed mortality records so you can quickly spot unusual patterns.

Red Flags

• Mortality above 0.5% daily in healthy flocks warrants investigation.
• Any sudden spike in mortality compared to your historical average
• Pattern changes, such as mortalities concentrated in one area of the house

7. Litter and Manure Management

Between Flocks

• Properly compost litter to kill pathogens by reaching at least 130°F for a minimum of three days.
• Cover manure and litter piles to prevent wild bird access.
• Do not spread fresh litter on fields during HPAI outbreaks without proper composting.
• Clean and disinfect houses thoroughly between flocks using approved products.
• Follow proper downtime, with a minimum of 14 days empty between flocks.

Biosecurity Tips for Backyard Chicken Keepers

Small flocks have also been significantly impacted by HPAI. Backyard flock owners need the same vigilance as commercial operations.

• Stop showing chickens at fairs, shows, and swaps during outbreaks.
• Do not buy new chickens from multiple sources or during active outbreak periods.
• Quarantine any new birds for 30 days before introducing them to your flock.
• Keep chickens in covered runs rather than free-ranging during HPAI season.
• Do not let chickens near ornamental ponds or bird feeders.
• Stop feeding wild birds if you keep chickens because it attracts possible virus carriers.
• Consider temporary housing modifications if your coop allows wild bird entry.

When to Report Suspected HPAI

Time is critical. If you suspect HPAI in your flock:

• Stop all bird movement immediately. Do not process, sell, or transport chickens.
• Isolate affected houses if only one shows signs.
• Contact your state veterinarian or USDA immediately using the numbers below.
• Do not move eggs, equipment, or vehicles off the property until advised.
• Document everything, including mortality counts, symptoms, and timeline.

Emergency Reporting Contacts

USDA 24-Hour Emergency Hotline

After Hours: 1-866-536-7593

Delaware

• Delaware Poultry Health Hotline: 302-698-4507 or 800-282-8685 (Delaware only)
• After-hours Animal Emergency: 302-233-1480
• Email: poultry.health@delaware.gov
• State Veterinarian: Dr. Karen Lopez

Maryland

• Maryland Department of Agriculture: 410-841-5810
• After-hours: 410-841-5971
• Email: md.birdflu@maryland.gov or animalhealth.mda@maryland.gov

Pennsylvania

• Pennsylvania Bureau of Animal Health: 717-772-2852 (Press option 1 for the on-call veterinarian, available 24/7)
• Email: RA-ahds@pa.gov
• State Veterinarian: Dr. Alex Hamberg

Virginia

• Virginia State Veterinarian's Office: 804-692-0601
• Email: vastatevet@vdacs.virginia.gov
• State Veterinarian: Dr. Charlie Broaddus

West Virginia

• West Virginia Animal Health Division: 304-558-2214
• State Veterinarian: Dr. James L. Maxwell, DVM

What Happens After You Report Suspected HPAI

Understanding the process can help reduce anxiety during an already stressful situation:

• Sample Collection: State veterinarians will collect samples from affected birds, usually within hours of your call.
• Preliminary Testing: State labs test for H5 and H7 viruses, with results typically available within 24 hours.
• USDA Confirmation: If positive, samples are sent to the National Veterinary Services Laboratory in Ames, Iowa, for official confirmation.
• Quarantine Established: A control area, typically a 10-kilometer radius, is established around your property.
• Depopulation: If confirmed, infected flocks are humanely euthanized to help prevent spread.
• Cleaning and Disinfection: Thorough premises cleaning is required before restocking.
• Indemnity Payments: USDA provides compensation for depopulated birds, which may require passing biosecurity audits.

Mental Health and Farm Support Resources

Losing a flock is devastating. The stress is real, and support is available. Do not hesitate to reach out to counseling services or farm stress hotlines in your state. If you are a Farm Credit member, you may also have access to a Member Assistance Program that offers free, confidential support for you and your household.

HPAI Prevention Starts With Biosecurity

For chicken farmers, losing a flock means lost income, empty houses, and months of recovery. The good news is that HPAI is preventable through diligent biosecurity practices.

As your financial partner, Farm Credit is here to support you not only in managing the financial aspects of your operation, but also in connecting you with resources to help protect your livelihood.

If you have questions or concerns about HPAI, contact USDA or your state-specific experts right away.

This content is provided for informational purposes only and is not intended to serve as investment, tax, accounting, or legal advice, nor as a substitute for the advice of qualified professionals.

The information presented reflects assumptions, source materials, and conditions as of the time of preparation and may be incomplete, inaccurate, or subject to change. Horizon Farm Credit does not endorse and is not responsible for the accuracy of information provided by third‑party sources referenced in this content.

Nothing presented here constitutes, or should be construed as, a commitment to lend or to provide any financial product or service. In no event shall Horizon Farm Credit be liable for any actions taken or decisions made in reliance upon, or use of, the information contained in this content 

Pathfinder Farm Blending More Than Military Grit and Farming Roots

Photos and story by Maria Listman

Perched near the rolling foothills of the Appalachian Mountains, just steps from well-known hiking trails, sits Pathfinder Farm. The 42-acre property in Keedysville, Maryland is more than preserved agricultural land — it’s the heart of a family-run distillery where military grit and a touch of adventure collide.

A unique red corn stretches across 25 acres. This special variety, known as bloody butcher, along with fresh spring water from the land, offers the perfect foundation for Pathfinder Farm’s moonshine, bourbons, and whiskey. Distilled in a former carriage house on the farm, every bottle reflects both authenticity and innovation.

Pathfinder Farm is powered by a family team — husband and wife veterans Nate and Natalie Kraft, and Nate’s sister, Liz Kraft Weiss, who is an Army Reservist currently called to active duty. Military service has shaped their discipline and determination, with Nate serving 10 years in the Navy, Natalie serving six years in the Pennsylvania Air National Guard, and Liz being active in the Army since 2008.

Nate and Liz grew up near their grandparents and great-grandparents who had a farmette and instilled respect for hard work and a love of the land. When it came time to name their business venture, Pathfinder felt fitting — a nod to Nate’s time in the Boy Scouts, an acknowledgement to their Pennsylvania Dutch heritage where “scout” translates to Pathfinder in German, and a tribute to their location near the Appalachian Trail.

That pioneering spirit took root years earlier when Nate completed his time with the Navy. He and Natalie traded uniforms for adventure, purchasing a sailboat and setting off on a year-and-a-half long trip around Mexico with a baby on board. Their lifestyle was far removed from their upbringing but sparked new dreams.

When Liz flew in to visit during their travels, the three found themselves envisioning a shared future — one where family, agriculture and entrepreneurship converged.

“That’s when we started talking about how crazy our lives are compared to the way that we grew up,” says Liz. “We wondered how we could do something together.”

As their sailing journey came to an end, Nate and Natalie knew their next chapter needed to be rooted in the land. Nate dreamed of owning a farm, and with family members who dabbled in hobby distilling, the idea of growing their own corn and crafting spirits felt like the perfect fit. The plan began to take shape and when Liz returned from another Army deployment, she wanted in.

“If there’s a safe bet in the world, it’s these two,” Liz shares.

What started as a vision for a new way of life soon became a family venture. Natalie and Nate chose to settle down in Maryland and with support from Farm Credit, the family purchased their farm and equipment and started planting bloody butcher corn.

Known for its deep red color, the variety adds distinctive character to their craft beverages. From the beginning, they were committed to doing things with integrity — real fruit infused in jars, fresh spring water from their land, and spirits crafted with care. The first three moonshine flavors were chosen as a tribute to a family member’s favorites, tying the generations together.

“We like to say that we turn sunshine into moonshine, because we grow the corn and we make the whiskey ourselves,” expresses Nate.

Their small batches crafted during the pandemic quickly scaled into a professional operation. Now, they own and operate a tasting room and cocktail bar on Main Street in nearby Boonsboro. Guests can sample their top seller, Bloody Butcher Bourbon, which is Nate’s personal favorite. Or, they can sip on Liz’s pick, Daily Driver, and Natalie’s choice, Orange Cranberry Moonshine. The team is also developing ready-to-drink cocktails, giving people new ways to enjoy the farm’s flavors wherever they are.

Their small batches crafted during the pandemic quickly scaled into a professional operation. Now, they own and operate a tasting room and cocktail bar on Main Street in nearby Boonsboro. Guests can sample their top seller, Bloody Butcher Bourbon, which is Nate’s personal favorite. Or, they can sip on Liz’s pick, Daily Driver, and Natalie’s choice, Orange Cranberry Moonshine. The team is also developing ready-to-drink cocktails, giving people new ways to enjoy the farm’s flavors wherever they are.

You don’t have to look far to find Pathfinder Farm spirits in the community at local farmers markets and special events, where customers can meet them face-to-face and hear the story behind each bottle. Their products are also sold in over 90 stores throughout the state and ship to 45 states, providing plenty of ways to enjoy spirits that start on a local farm in Keedysville. Pathfinder Farm was recently named America’s Best Farmer Distiller Bourbon by the American Craft Spirits Association, a worthy recognition for a small-town distillery whose reach and reputation continue to grow far beyond Maryland.

Pathfinder Farm is more than a business — it’s a shared leap of faith, born at the sea and anchored in Maryland soil. It’s proof that service, adventure and family can come together to create something meaningful for their community.

Visit pathfinder.farm to learn more.
 

A Teenage Mistake Blossomed into a Lifelong Partnership and Thriving Maryland Farm

Photos and story by Andrea Haines

When Richard Addis of Bishopville, Maryland, was in tenth grade, a moment of frustration changed the course of his life. Tired of being provoked by a classmate on the school bus, he shoved the student and shattered a bus window. This incident brought him a bit of trouble, as well as a glimpse into what he later discovered to be his lifelong calling.

Richard’s mother suggested he work on the farm that the bus driver, Eugene, owned to make amends, and Eugene agreed. What began as punishment turned into mentorship, friendship, and eventually, a farming partnership.

“I was put to work knocking down sawdust in the chicken house corners, cleaning nests, and doing many chores,” Richard recalls. “I enjoyed the work. It reminded me of when I was younger and our neighbor would take me on tractor rides, which piqued my interest in farming, and it just grew from there.”

Eugene became more than a boss to Richard — he became a father figure. Richard credits him with teaching the fundamentals of farming, from planting to harvest planning. Even when Richard left in 2004 to serve in the U.S. Air Force, Eugene’s influence stayed with him. Stationed in South Carolina and working in Electronic Warfare Advanced Programs Division, Richard honed his skills in complex computer systems, leading him to work with NASA.

Those years of technical training proved invaluable when he returned to agriculture. “Tractors and machinery are just computers on wheels,” Richard says. His ability to diagnose equipment problems and even fix firmware bugs, like a faulty corn planter monitor, has saved time and money on the farm. The ability to transition from the service to civilian wasn’t hard for Richard as he always felt that he could continue his work, but in the fields.

Today, Richard and Eugene work side by side, farming about 380 acres of corn and soybeans. Eugene admires Richard’s fresh perspective, saying “He’s younger, more savvy, and brings skills I could never have imagined when I started out.”

Richard’s journey has taken him around the world, from various Air Force bases to South Korea, where he met his wife, Katie. Together, Richard and Katie are now raising three children — Annabelle, Emmitt, and Reese — on their farm.

Katie noticed the special bond between Eugene and Richard early on, and she doesn’t mind sharing her husband with his mentor. “Eugene and Richard are always up to something,” Katie shares. “They work long hours in the fields and can often be found having a bit of fun in the shop. Eugene has become an honorary grandfather to our kids, too.”

For Richard, farming isn’t just about crops. It’s about community, resilience, and carrying forward lessons from mentors like Eugene. Still, challenges remain. As a first-generation farmer, he cites the cost of entry and the scarcity of land as major hurdles.

“You’ve got to be creative,” Richard says. “Sometimes we’re what I call ‘highway farmers’, renting whatever land we can.”

Support from Farm Credit has been key in keeping the farm moving forward. “The customer service outweighs any discount you could get elsewhere,” Richard notes.

Doug Bennett, Farm Credit Ag Relationship Manager, has been one of many representatives that has helped guide the farm’s financial needs. Growing up on a vegetable farm himself, Doug understands the ups and downs of agriculture.

“That’s what makes Farm Credit different,” Doug shares. “It’s stable support in an unstable industry. We are able to assist where we can in a changing world.”

Richard often reflects on the unconventional start to his farming career. His advice to those hoping to follow a similar path? Find a mentor.

“You need someone in agriculture who’s willing to work with you or set a foundation for your plans,” says Richard. “That’s how you get started.”

For Richard, what began with broken glass has led to strong roots. With a mentor’s wisdom, a veteran’s technical skill, and the support of Farm Credit, his fields today stand as proof that unexpected beginnings can grow into lasting legacies.
 

How One Veteran Built a Thriving Timber Business

Photos and story by Andrea Haines

When Eric Abernathy left the U.S. Army, he carried with him discipline, adaptability, and an appreciation for structure. Those qualities later became the backbone of his success in forestry, where he carved out a career that balances business expertise with stewardship of the land.

Eric is the owner of Abernathy Forest Resources, LLC (AFR), which he launched in 2005 after working for another timber business and realizing he wanted to branch out on his own. With a degree in Forest Technology from Pennsylvania College of Technology, Eric combined his technical training with his love for the outdoors.

“I realized early on I’d rather be in the woods than in a classroom,” says Eric. “Now, I get to be a teacher in a different way, educating producers and clients about the types of logs and products we aim to provide.”

Starting AFR wasn’t easy. Eric refinanced his house and rental property, saving enough to make the downpayment needed to get the business moving. Traditional banks were hesitant to support a small, specialized forestry business, but Eric’s prior experience, reputation for hard work, and honesty persuaded suppliers to give him leniency while he built up momentum. “I was careful not to overreach,” he recalls. “Just close enough to what I needed to make it work.”

By 2006, AFR was exporting logs overseas. Today, Eric’s company ships to China, Vietnam, Indonesia, South Korea, Japan, Germany, Italy, Portugal, Spain, and Canada, to name a few. Each log is carefully selected, graded, barcoded, and tracked from supplier to yard and then shipping container. At home, Eric also owns Abernathy’s 179, which manages 393 acres of forest land in Pennsylvania and New York, giving his business both stability and the ability to supplement inventory when markets fluctuate.

When a company Eric once was prior employed at went bankrupt in 2007, it opened the door for AFR to grow. He hired a yard manager, brought in steady employees, including his father after retirement, and steadily expanded.

“The people around me have been a big part of the progress,” Eric notes. “It takes the right team to make it work. You have to have dependable people at the home base to be able to spend as much time on the road with customers as I do. I am lucky to have long-term employees in key positions that care about the success of the company as much as I do.”

Eric’s Army service played a pivotal role in shaping his adaptability. As a 54B Nuclear Biological Chemical Specialist, he trained soldiers in detection and safety. That experience gave him discipline, focus, and the ability to adapt quickly — skills he uses daily in forestry

“The timber business can be solitary,” he admits. “But it requires precision, patience, and the ability to communicate with landowners, loggers, and buyers. Those skills all channel from my military years.”

In 2018, Eric turned to Farm Credit for financing. Unlike big banks, Farm Credit understood forestry’s unique challenges and opportunities. Their flexible approach gave Eric the ability to invest in timberland for long-term stability.

“Forestry and farming are two sides of the same coin,” Eric says. “Sometimes you cut down to make room for new growth, and in the long run, the land is healthier. Farm Credit understood that, and it made all the difference.”

Eric Masters, Farm Credit Ag Relationship Manager, admires Eric’s thorough planning. “Having a detailed plan helps us move quickly to get customers the support they need,” he explains. “Eric comes prepared, which makes the partnership strong.”

Part of Eric’s success comes from his practicality. He hasn’t spent heavily on trucks or machinery — instead, he looks for reliable equipment that will get the job done without overspending. It’s another example of how his steady, disciplined approach keeps the business competitive.

Eric has also expanded his business in recent years to offer mulching and land clearing services, and partner with the Natural Resources Conservation Service to reduce invasive species. As he looks to the future, his vision is steady growth that is sustainable and supports both the forests and his community.

From soldier to forester and risk-taker to business owner, Eric Abernathy’s journey is proof that resilience and hard work can turn challenges into opportunities. With Farm Credit at his side, he’s continuing to grow a business rooted in longevity, discipline, and respect for the land.
 

Cybersecurity isn’t just an IT problem. It’s a personal and operational problem. During a recent Farm Credit webinar, cybersecurity expert John Sileo, President and CEO of The Sileo Group, shared how modern threats impact both individuals and agricultural businesses, and six steps you can take now to strengthen your protection.

1. Start by Making Cybersecurity Personal

Sileo’s own experience with identity theft underscores the need for individual vigilance. 
Key actions:

• Update your phone’s operating system monthly
• Use a strong alphanumeric passcode
• Treat your phone like a digital key—keep it locked and secure

Because 92% of cyberattacks come from human error, building personal awareness across family and employees is essential. For additional resources, visit the National Cybersecurity Alliance (staysafeonline.org) or the Cybersecurity & Infrastructure National Security Agency (cisa.gov).  

2. Strengthen Your “Hogwash Reflex”

Phishing attacks are now polished, personalized, and powered by AI. Don’t rely on spotting typos or odd email addresses and trust your instinct. Slow down and verify unexpected messages, especially those that are creating pressure, urgency, or confusion that cause you to think “hogwash.”

3. Identify Your “Invaluables”

You can’t protect everything equally. Decide what matters most and prioritize strategies that protect your most essential assets:  

• Critical personal and financial information 
  Be selective and intentional about who you share this information, especially with financial systems such as online banking accounts. Limit access to trusted parties and verify requests before providing sensitive details.
• Irreplaceable business data 
  Treat proprietary or operational data with care. Share it only when necessary, and ensure recipients follow proper security practices.
• Agricultural systems essential to daily operations 
  This includes irrigation controls, precision agriculture equipment, sensors, and automated systems. Change default passwords immediately, keep devices routinely updated, and ensure only authorized users can access them.

4. Focus on the Big 3 Cybersecurity Priorities

Sileo recommends focusing on three actions that prevent the most damage:

1. Multifactor authentication (or passkeys)
2. Regular software and security updating
3. A reliable backup plan (3-2-1 rule):  
   • 3 copies of data
   • 2 formats
   • 1 stored offsite

5. Get Expert Support When Needed

Cyber threats evolve too quickly to rely on outdated plans or do it yourself (DIY) security. Don’t hesitate to bring in professionals, even your local IT professionals, to ensure you’re using the most up-to-date forms of safety and security protocols. Routinely evaluate your practices to stay ahead of threats and bad actors.  

6. Treat Cybersecurity as Ongoing

Threats like deepfakes, AI driven scams, and voice cloning are advancing rapidly; it’s important to continuously adapt. Effective cybersecurity is never “finished.” Make fraud and cybersecurity education a priority for your business.  

Bottom Line

Cybersecurity is fundamentally a human issue. Stay personal, stay skeptical, protect what matters most, and keep evolving your defenses.

Explore more resources in our Cybersecurity Center, find upcoming events on our Webinars page, and read the latest updates in our Newsroom.

This content is provided for informational purposes only and is not intended to serve as investment, tax, accounting, or legal advice, nor as a substitute for the advice of qualified professionals.

The information presented reflects assumptions, source materials, and conditions as of the time of preparation and may be incomplete, inaccurate, or subject to change. Horizon Farm Credit does not endorse and is not responsible for the accuracy of information provided by third‑party sources referenced in this content.

Nothing presented here constitutes, or should be construed as, a commitment to lend or to provide any financial product or service. In no event shall Horizon Farm Credit be liable for any actions taken or decisions made in reliance upon, or use of, the information contained in this content 
 

🔑 Key Takeaways from the Video

• Farmer bridge payments were designed for speed, not trade mitigation. Payments were calculated based on cost-of-production shortfalls to help producers navigate tight margins until ARC and PLC support becomes available later in 2026.
• Row crop margins remain under pressure, with policy clarity critical to demand. Biofuel policy decisions — including Renewable Volume Obligations, 45Z guidance, imported feedstocks, and year-round E15 — represent some of the most meaningful levers available to support corn and soybean demand.
• China remains difficult to replace as a soybean buyer. While progress is being made on purchase commitments, China’s scale creates ongoing uncertainty that complicates acreage decisions and long-term planning for producers.
• Wheat and cotton face the toughest outlooks. Ample global wheat supplies and intense export competition continue to weigh on prices, while cotton struggles with long-term demand erosion and competition from synthetic fibers.
• Livestock markets are supported by tight supplies — but not without risk. Strong cattle prices, consumer affordability concerns, trade access, and disease threats all intersect to influence herd rebuilding and long-term stability.
• The broader ag economy appears stable — but stalled. Without a new demand shock or meaningful policy shift, producers may remain in a familiar cycle of tight margins and cautious optimism.

2026 Outlook — A Market Searching for Its Next Spark

As the agricultural sector turns the calendar to 2026, former USDA Chief Economist Seth Meyer, now leading the Food and Agricultural Policy Research Institute at the University of Missouri, offers a clear-eyed assessment of where farm economics stand — and why relief remains uneven across commodities. Speaking candidly, Meyer frames the current environment as one marked by tight margins, policy dependence, and an industry still waiting for its next meaningful demand catalyst.

At the center of the conversation are the farmer bridge payments announced just before year-end — designed to provide short-term support as producers navigate prolonged margin compression. Meyer explains that these payments were calculated not as trade mitigation, but as economic relief tied to cost-of-production shortfalls, using an ECAP-style framework to ensure speed of delivery. In his view, timing mattered as much as the dollars themselves: bridge payments only work if they arrive before producers are forced to make difficult financial decisions.

Looking beyond immediate assistance, Meyer highlights the broader transition underway — away from ad hoc disaster and emergency programs and back toward the traditional safety net provided by ARC and PLC. Whether that safety net proves sufficient, however, depends heavily on policy choices still unresolved in Washington. Biofuel policy, particularly decisions around Renewable Volume Obligations, 45Z tax credits, imported feedstocks, and year-round E15, emerges as one of the most significant levers available to support row crop demand in the near term. Without clarity, uncertainty continues to hang over corn and soybean balance sheets.

Trade remains another defining variable. While corn exports have performed relatively well without heavy reliance on China, soybeans tell a more complicated story. Meyer notes that China’s progress toward its soybean purchase commitments bears watching — but equally important is how U.S. soybeans compete globally as Brazilian supplies enter the market. The sheer scale of Chinese demand makes replacement difficult, creating instability that complicates acreage planning and long-term market confidence.

Among crops, Meyer is most cautious on wheat and cotton. Wheat faces abundant global supplies and aggressive competition from Black Sea exporters, keeping prices under pressure despite steady shipments. Cotton, meanwhile, struggles with long-term demand erosion driven by synthetic fiber competition and muted global consumption growth — challenges that trade improvements alone may not fully resolve.

Livestock presents a more nuanced picture. Tight cattle supplies continue to support strong prices, but Meyer emphasizes the delicate balance between maintaining producer profitability and addressing consumer price concerns. Policies affecting beef imports, plant access to China, and disease risks such as New World screwworm all factor into decisions that influence herd rebuilding and long-term stability. In dairy, expanding global milk production and slowing price momentum point to tighter margins ahead in 2026, even as beef-on-dairy continues to provide some income support.

“We go through these cycles where you come off a price spike and things are rough for several years — until the next shock comes along or we see a policy change that pulls us out of it.”
— Seth Meyer

Ultimately, Meyer characterizes the current ag economy as stable, but stuck. Prices may not deteriorate significantly further, but meaningful improvement likely depends on either a new demand shock or decisive policy action. Until then, producers remain in a familiar cycle — navigating tight margins, weighing risk carefully, and waiting for the next force capable of reshaping the market landscape.

This content is provided for informational purposes only and is not intended to serve as investment, tax, accounting, or legal advice, nor as a substitute for the advice of qualified professionals.

The information presented reflects assumptions, source materials, and conditions as of the time of preparation and may be incomplete, inaccurate, or subject to change. Horizon Farm Credit does not endorse and is not responsible for the accuracy of information provided by third‑party sources referenced in this content.

Nothing presented here constitutes, or should be construed as, a commitment to lend or to provide any financial product or service. In no event shall Horizon Farm Credit be liable for any actions taken or decisions made in reliance upon, or use of, the information contained in this content 

Building or upgrading grain storage can boost your farm's efficiency, protect your crop quality, and give you more control over when and how you sell. But storage infrastructure is a big investment, and finding the right financing strategy is essential.

Why Grain Storage Matters

On-farm grain storage gives farmers more control. It reduces waste, keeps grain in better condition, and allows you to wait for stronger market prices instead of selling immediately after harvest.

Silos also improve logistics. With grain on hand, you can manage deliveries better, simplify harvest operations, and cut down on urgent transport costs. In short, grain storage means flexibility, higher value, and lower risk.

1. Asset Finance for Grain Silos

Asset finance lets you fund equipment purchases—like grain silos—without a large upfront cost. Instead, you make regular payments over time.

This approach:

• Helps preserve cash flow
• Aligns repayment with seasonal revenue
• Can offer flexible terms based on your farm's financials

To qualify, prepare solid financial documents—tax returns, balance sheets, and income statements. Be sure to compare providers for interest rates, fees, and agricultural expertise.

2. Commercial Loans

Traditional banks and ag-focused lenders offer commercial loans for storage projects. These loans can cover new buildings, upgrades, and even drying systems.

Requirements usually include:

• A detailed business plan
• Collateral
• Good credit history
• Flexibility/Feasibility
• More options (lease option)

3. Farm Storage Facility Loan (FSFL) Program

• The FSFL Program, offered through the USDA's Farm Service Agency (FSA), helps farmers build or upgrade storage structures and equipment. Here's how it works:
• Loan amounts up to $500,000
• Terms from 3 to 12 years
• Interest rates from about 3.875% to 4.5%
• 15% down payment required
• Since 2000, over 33,000 FSFL loans have been approved. It's one of the most accessible options available—especially for small to mid-sized farms.

Lenders like Farm Credit specialize in these types of agricultural loans and can offer personalized terms based on your operation.

Key Considerations When Financing Storage

Before committing to a loan, think through the full picture:

Interest Rates and Terms

Rates can vary widely. Some loans are short-term (1–5 years), while others extend over a decade. Shop around and compare.

Total Cost of Ownership

Storage costs go beyond construction. You'll need to budget for:

• Insurance (~0.5% annually of the asset's value) - Contact your agent for an estimate.
• Repairs and maintenance (3–5% yearly for equipment) - Contact your dealership for an estimate.
• Property taxes – Contact your local township for an estimate.
• Depreciation – Contact your accountant for an estimate.

Understanding all expenses helps you choose the right size and scale of investment.

Ways to Maximize Your ROI

Smart storage investments can pay off over time. Here's how:

Maximize your Marketing Strategy.

• Sell when prices peak – Storage lets you wait out dips in the market.
• Avoid elevator delays – Keep operations smooth and timely during harvest.
• Reduce drying costs – Control the process in-house for better efficiency.
• Add property value – A well-planned storage setup increases long-term resale or rental appeal.

Application Process

To apply for financing:

1. Gather your financial documents – Up-to-date tax returns, balance sheets, and income statements.
2. Estimate your funding needs – Know what you want to borrow and why.
3. Choose a lender – Look for experience in ag financing and good customer support.
4. Submit your application – Many lenders assist with paperwork or offer online portals.

Alternatives: Leasing or Partnerships

If a loan isn't the right fit, consider:

• Leasing – Spread payments over time and avoid the upfront purchase cost.
• Partnerships – Share the cost and use of storage with other farmers or local co-ops.

Both options offer flexibility while keeping ownership costs low.

Final Thought

Grain storage gives you options—better crop quality, improved logistics, and stronger profits. With a clear financing plan, you can make that investment work for your farm's future. Contact us today to learn more about your financing options with Farm Credit.

This content is provided for informational purposes only and is not intended to serve as investment, tax, accounting, or legal advice, nor as a substitute for the advice of qualified professionals.

The information presented reflects assumptions, source materials, and conditions as of the time of preparation and may be incomplete, inaccurate, or subject to change. Horizon Farm Credit does not endorse and is not responsible for the accuracy of information provided by third‑party sources referenced in this content.

Nothing presented here constitutes, or should be construed as, a commitment to lend or to provide any financial product or service. In no event shall Horizon Farm Credit be liable for any actions taken or decisions made in reliance upon, or use of, the information contained in this content