The porch featured on the cover of this - Resource Bank

A drought can be enough to bring out the pessimist in any farmer. In this time of stress, be assuredthat Resource Bank will stand by you through thick and thin. Resource Bank has been making agriculturalloans since 1901. Because of our long history, we understand the cyclical nature of your industry. Wewere here in the wet years of 1993 and 1996, the grain embargoes of the 80s, and the dry years of 1988and now 2005. Precipitation in Illinois from March 1 through July 21 in 2005 ranks as the 5th driest since1900. Do we expect reduced yields? Yes. But we are in this with you for the long term, and you can resteasy knowing that you have a partner who knows that dry seasons come and go, but relationships based ontrust and a common goal are ever enduring.We always try to go one step further in providing something that goes beyond the traditional checkingand savings accounts you might normally expect. I’m pleased for this opportunity to let you knowabout our new Performance Account which is designed for our accomplished clients that want flexibilityand a high rate of return. <strong>The</strong> Performance Account offers two options. <strong>The</strong> money market option providesyou with a higher annual percentage yield than would be found in a traditional Savings Account.<strong>The</strong> Money Market option currently has an Annual Percentage Yield of 3.50% with a $50,000 minimumbalance. <strong>The</strong> Checking Option has an Annual Percentage Yield of 3.25% with a $50,000 minimum balance.Choose the Performance Money Market option to grow your savings orenjoy the flexibility of the Performance Checking option for added convenience.Both options include free personalized checks, a free ATM/Visa CheckCard, free Internet Banking, and the first 90 days of Bill Pay free. <strong>The</strong>se aregreat rates and a good option if you are looking for more flexibility.We also have a flexible and liquid 30 Day CD with a 3.25% AnnualPercentage Yield (minimum deposit of $10,000). <strong>The</strong> interest is paid at maturity.<strong>The</strong>re is a penalty for early withdrawal.Finally, I would like to take this opportunity to welcome Jim Kuppler,whom many of you already know. Jim joined us in February as aCommercial/Ag Advisor in our Hinckley Branch. He and his wife Karen havetwo children and live in rural Hinckley. If you have time this summer, stop bythe bank and say, “Hello.”Sincerely,Richard J. KatzJim KupplerComm/Ag AdvisorPresidentResource Bank, N.A.<strong>The</strong> <strong>porch</strong> <strong>featured</strong> on the cover of this issue is thehome of Ron and Carol Davidson. <strong>The</strong> photographwas taken by Womack’s Photography, DeKalb, IL.

News You Can UseWill Eminent Domain Court Ruling Affect Illinois Farmers?In light of the recent U.S. Supreme Court ruling, Illinois Farm Bureauwould like to see state law developed that would exclude farmland andfarm-related buildings from public takings for economic development.“IFB believes in private property rights and will work with the GeneralAssembly to address eminent domain issues,” Kevin Semlow, IFB directorof state legislation, told members of the Illinois Senate StateGovernment Committee last week in Chicago.<strong>The</strong> committee held a hearing on possible state action following a June23 U.S. Supreme Court ruling in favor of New London, Conn., allowingthe city to take private property for economic development. SusetteKelo, a landowner, sued New London to keep her home that the city tookthrough eminent domain. <strong>The</strong> city, saying it is redeveloping a blightedcommunity, intends to allow a private developer to turn the area into a hotel, health club, and office complex.“Our members have long supported the sanctity of private property and individual rights as provided by theU.S. Constitution,” Semlow said. “Illinois Farm Bureau will be working with General Assembly members onlegislation to address farmers’ concerns.”IFB would like state law to exclude farmland used for production agriculture, farmsteads, and farm buildings,and land enrolled in conservation reserve programs from potential takings through eminent domain for economicdevelopment. In the Kelo vs. City of New London decision, the justices specifically deferred to statesthat have more restrictive condemnation laws, said Paul Harmon, IFB general counsel.In Illinois, the 2002 Southwestern Illinois Development Authority case is the governing law. <strong>The</strong> IllinoisSupreme Court ruled the Southwestern Illinois Development Authority could not take private land and give itto a private party for racetrack parking near East St. Louis. Illinois law does not allow a government to takeproperty from one private landowner and give it to another private landowner for a purely private benefit,Harmon said. Illinois law also distinguishes between the concepts of “public use” in which the public woulduse land and “public purpose” in which the use would serve the public good. Illinois law still requires thefinding of some apparent public use in order for eminent domain to be used, Harmon said. Illinois law alsoallows local governments to use eminent domain to redevelop private property if it is found to be blighted,Harmon noted. “We (IFB) would not, however, like someone to consider an abandoned farmstead as ‘blighted’and subject the surrounding farmland to public redevelopment,” Harmon said.At last week’s Senate committee hearing, several legal experts noted it would be difficult for legislators toaddress the scope of public use for eminent domain purposes. Other speakers suggested “just compensation”in an eminent domain case should include a land owner’s appraisal fees and other related expenses, as well asthe land’s value. Harmon described eminent domain cases as “factually intensive.” For that reason, courtslikely will make the ultimate decision in cases that could go either way, he said.– Kay ShipmanSource: Farmweek, http://farmweek.ilfb.org/

Davidson GrainCreston,How do you create something from nothing? How do you start a business from the ground up? How do you growyour business by leaps and bounds, with only your customers to do your selling for you? <strong>The</strong> answer, according toCarol and Ronald Davidson, the owners of Davidson Grain Incorporated, is simple; service. "We're all so busy," saidCarol, "the whole world is after good service."BeginningsRonald's grandfather, William, came to DeKalb Countyfrom Canada in 1905 when he was 16 years old. He started hisfarm with livestock and grain. Over the years, the farm has beenpassed down to Ron and his son John, who spends most of his"free time," when he is not at the Grain Business, working the4,200 acres throughout Ashton, Kirkland, Creston, and Rochelle.Carol Davidson wasn't raised with a farming background.From Southern Illinois, she is a nurse (non-practicing). WhenCarol and Ron met through a mutual friend, she was the administratorat Rochelle Nursing Home. <strong>The</strong> skills she utilized as administratorat the nursing home would soon be put to good use in theirnew business.In 1992, Ronald and Carol began using the elevator that, intwo years, would provide the basis for their new business. Ron and Carol worked in a little building behind the elevator.With little more than a frying pan, they put in many seventeen-hour days using just the bare essentials. <strong>The</strong>y slepton a couch that pulled out into a bed, all the while trying to ignore the sounds of the rats.Since she didn't have much experience in farming, the startup of the business in 1994 was a challenge forCarol. Sometimes Ron would throw out unfamiliar terms, and she felt like she might be making a big mistake. Goingback to nursing was becoming more and more attractive, especially since she and Ron worked such long hours. ButCarol kept at it, and soon she was up to speed with Ron. Today, a computer program handles all of their bookkeeping,but in those days Carol would keep track of everything manually. While Ron was up all night drying the corn, andthen handling the customers in the morning, Carol was keeping track of everything on a spreadsheet by hand.Ron manages the strategic job of purchasing and selling the grain. Keeping one eye on the market and one eyeon his storage capacity, Ron decides how much to buy, how much to ship out, and how much to keep open for storage.Up to 200,000 bushels of grain a day are bought and sold at Davidson Grain in the fall. Ron says it is all a matter oftiming, as the price changes often. Having learned how to work the market with his own farm, he expanded whenthey started the business. "I had quite a few good teachers,"Ron said.Growing<strong>The</strong> business started with Ron, Carol, Ron's son John, anda hired man. In 1996, they expanded with the purchase of severaltrucks. <strong>The</strong>y cover the entire Midwest with pickups inIowa, Wisconsin, Indiana, Michigan, Minnesota, and of course,Illinois. When a company needs a load delivered "just in time,"Ron and Carol will get the call because their drivers haven'tmissed a load yet. "<strong>The</strong> truckers are our salesmen out there,"said Ron, "so we have meetings with them to make sure theyrealize that." <strong>The</strong>y make sure that all of their drivers are trained

n Incorporated, Illinoison all of the equipment the grain business uses, and they don't sendnew drivers out to the fields until they work for their farm to makesure they can do the job well. That way, if a farmer needs help whenthe driver is out in the field, they can pitch in and help out, instead ofsitting in the truck and waiting. Because most of their drivers havebeen there for a long time, with the exception of a few part-timers thatthey hire in the fall, Ron and Carol have a strong relationship withthem, and in turn, the drivers have good relations with the farmers.At one point Ron and Carol thought perhaps business wasexpanding almost too quickly. <strong>The</strong>y now have 15 semis running andfour locations: Holcomb, Shabbona, and two in Creston. <strong>The</strong>y broughton Carol's son Hadley in 1997 and the four of them, John, Ron, Carol,and Hadley (see picture at left), began to learn each other's jobs. While Ron and Carol began the business, over theyears Hadley and John have begun to take over. "We never expected the business to grow as much as it did," saidCarol. "We never planned on being in the grain business." <strong>The</strong> two of them consider their customers to be their salesmen.<strong>The</strong>y know that if they do their best to show the customers that they appreciate their business, Davidson Grainwill sell itself.Service"In any industry, service seems to be lacking quite abit," Ron said. One of their customers often comments toRon and Carol, "You treat me like a big farmer." Hemight only have three loads, but when he calls for a truck,they send him a truck right away. <strong>The</strong> customer knowsthat he is just as important as the large farmers.Sometimes the small farmers can be ignored in the fallduring the busier times. Ron and Carol know that that ishow they built their business…with the small farmers. Infact, they picked up a lot of business from farmers whowould be sitting, waiting for trucks from their elevatorand right across the road they would see Davidson Graintrucks there and back as many as four times.<strong>The</strong>ir business has grown because of the personalservice that they offer to their customers. <strong>The</strong>y will helptheir clients with LDPs (Loan Deficiency Payments); all they have to do is bring in their paperwork and Carol orHadley will supply all of their records for them. Carol and Hadley will help their clients with the multitude of governmentfarm programs that are available and sometimes overwhelming. <strong>The</strong>y familiarize themselves with the governmentprograms and help out or even complete applications for their clients. Sometimes farmers come in and want to knowhow many bushels they've sold for their taxes and how much income they've had. Davidson Grain is happy to print outthe records for anyone who needs them. "Without the customers, we don't have anything," said Ron.At first, their clients would be cautious. Since Davidson Grain was a fairly new operation, they would onlybring a portion of their harvest in order to test them out. But when the farmers learned what Ron and Carol could dofor them at the end of the year with all of their records, and that they didn't have to go to two or three elevators, theybegan to bring all of their business to Davidson.To show their appreciation to the customers and their employees, Carol cooks a lunch for some of their clients and the

30 people working for them. It started when they were farmersand she would cook lunch for only two people. Oncethey started the elevator and the trucks, the number of lunchessoared. <strong>The</strong>y try to get customers at least one lunchthroughout the year. Some farmers will call in and ask,“What’s for lunch?” When they come in to dump their grain,they get their ticket and good food as well.In addition, Ron and Carol host a casual party inSeptember of each year for all of their customers. <strong>The</strong>y haveit behind their house in the beautiful pool area that Ron built.Carol cooks a pork chop dinner, and they have gifts foreveryone. <strong>The</strong> gifts are usually tools, free trucking, free storageand drying, and Longaberger Baskets. <strong>The</strong>y would muchrather spend the money getting to know their customers andenjoying friends, than hiring a salesman.<strong>The</strong> only problems that they have had have are theresults of the forced growth. <strong>The</strong> business expanded so rapidly that it was tough to keep up with the demand. Attimes, they have had to curb the growth in order to maintain their reputation for excellent service. <strong>The</strong>y hate tosay that they can't take on new business, but to decrease the service to their current customers would be too big ofa sacrifice.Both Ron and Carol consider their biggest success to be that they see new customers every year that theydon't know. "We've gotten all of our customers without going out and knocking on doors," said Ron. Some customersdon’t even let them know they are coming until they drive across the scale. <strong>The</strong>re is also a certain level oftrust that exists between Ron, Carol, and their customers. "We don't make too many mistakes for the amount ofbushels that we do," Carol said, "but if we do make mistakes, the customers know that we will fix it."<strong>The</strong> Davidson's feel very fortunate that they have been able to do business the way they think it should bedone, and that so many people have responded with good feelings towards their operation. As retirement nears,they are letting John and Hadley handle the business more and more so that when Ron and Carol finally do retire,their customers will still be in the best of hands. <strong>The</strong>y are happy that they are able to pass on what they havelearned and keep the operation in the family. As Carol said, "We were lucky that we had the boys to help us out.We couldn't have done it without them." Because their primary goal is to provide the best service possible in anindustry that greatly appreciates it, Davidson Grain will continue to give their customers outstanding value fortheir money for a long time to come.We Need Your HelpIf you know a family you would like to see <strong>featured</strong> in an upcoming newsletter, please send their name, address andwhy you think Back Porch News should feature them to:Back Porch NewsResource Bank555 Bethany RoadDeKalb, Illinois 60115

Farm Fresh RecipesIngredientsBBQ GRILLEDPOTATO/VEGGIEBUNDLESVeggie bundles are the answerfor the perfect accessoryto your summer cookout.2 pounds potatoes -- cut in small chunks1 onion -- cut in small chunks3 carrots -- cut in small chunks1 zucchini -- sliced1 green pepper -- cut into slices without seeds1 red pepper -- cut into slices without seeds6 cloves garlic -- crushed1/2 cup of sesame oil4 tablespoons fresh basil -- finely choppedDirectionsPreheat a skillet. Add sesame oil. Place over medium high heat.Add garlic and basil. Brush lightly a large strip of heavy duty aluminum foil withthe sesame oil. Place potatoes, onions, carrots, zucchini, green and red pepper on top of thefoil. Brush potatoes and vegetables with the sesame oil, garlic and basil mixture. Wrapbundles tightly in another piece of foil and Bar-b-que for about 20 - 30 minutes, turningevery 15 minutes. You can useany combination of vegetableswith the potatoes.For variety, add precookedshrimp for a special touch.

Resource NewsHats Off to DeKalb County! Resource Bank’s PT Cruiser and big blue hat make their waythrough the Genoa Days Parade. <strong>The</strong> Resource Hat will be seen throughout the year at variouslocal events and parades. See if you can catch it!If you know of someone who does not receive Back Porch News and would like to, please drop us a note to let usknow. Also, if you receive Back Porch News and do not wish to, please write us or call (815) 756-6321.Member FDICMain Bank Office • 555 Bethany Road, DeKalb, IL 60115 • 815-756-6321Additional Banking Locations:Cortland 2007 Somonauk Road • 815-756-2266DeKalb 775 S. Annie Glidden Road • 815-748-3108Genoa 310 S. Highway 23 • 815-784-8301Hinckley 280 E. Lincoln Avenue • 815-286-3241Malta 302 S. Second Street • 815-825-2074Sycamore 401 E. State Street • 815-895-1703Member FDICCurrent Resident OrPRESORTEDSTANDARDUS POSTAGE PAIDDEKALB, ILPERMIT NO 2