FARM BUREAU NEWS ISSN 1062-8983 • USPS 538960 Volume 88 Number 3 • May 2009
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TENNESSEE FARM BUREAU NEWS ISSN 1062-8983 • USPS 538960 Volume 88 Number 3 • May 2009 WHAT’S INSIDE: PAGE 2 FBI Annual Meeting PAGES 4 & 5 Editorials on Cuba PAGE 7 April Tornado Outbreak Governor gets advice straight from the cow’s mouth – During the 2009 Ag Day on the Hill, Tennessee Gov. Phil Bredesen gets the facts on agriculture from Josie the Cow. Pictured from left is state House Ag Committee Chairman Rep. Stratton Bone, FFA Middle Tennessee Vice President Jeffrey Turner and Josie’s owner Jared Major . Politicians join in Ag Day on the Hill During the April 14 “Ag Day on the committee had a chance to hear from million acres of land. Agriculture Hill” event, members of Tennessee’s a local FFA chapter, Woodbury FFA, production, excluding forest prod- Legislature saw up close and personal about their bio-diesel venture and the ucts, normally generates more than why Tennessee’s agricultural industry importance of biofuels in Tennessee, a $2.5 billion annually in farm cash is important to the state’s economy. 4-Her on the value of that youth pro- receipts. Tennessee’s top farm and The House Agriculture Committee, gram, as well as updates from many of forestry products include beef cattle, chaired by Representative Stratton the agricultural organizations across hardwood lumber, tobacco, cotton, Judge reverses state’s Bone, hosted a morning of information the state. Commissioner Ken Givens dairy products, poultry, corn, soy- ruling on farm pond for other members of the Legislature even presented the chairman with beans, horses, meat goats and nursery about what is happening on today’s an old-fashioned glass milk bottle products. We also rank second in PAGES 5 & 6 Tennessee farms. Displays from agri- in honor of the day. Many of the the nation in hardwood products, cultural organizations lined the halls speakers also thanked the commit- equine and meat goats and third in as well as a dairy cow, mules, some tee for its continuing support of the the nation in tobacco, with beef cow sheep and other livestock were located agriculture enhancement cost-share operations and tomatoes coming in outside on the Plaza to show the program, which, even though taking fourth. importance of farming in our state. a hit, is still a crucial tool for many A real highlight of the morn- Lawmakers had an opportunity to producers across the state to be able ing’s activities was the 2nd Annual mingle with area farmers and other to make necessary improvements to Legislative Milking Contest, which agricultural industry leaders who were their farms. The room was filled with consisted of a milking contest on-hand to talk about the importance supporters of the agriculture industry between two members of the House of agriculture. and the committee was given vital of Representatives. Rep. Dale Ford During the House Agriculture information on why agriculture is of Jonesborough, District 6 and Rep. Committee meeting, Chairman Bone important to the state and how the Mike Turner of Old Hickory, District highlighted many different aspects of industry is faring in this turbulent 51 faced off, trying their best to be agriculture by having representatives economy. named this year’s top “Capitol Hill come forward to address the commit- Tennessee alone has about Milker” and carry home the tee about their chosen vocation. The 79,280 farms encompassing 10.9 Continued on page 3 Official newspaper of Tennessee Farm Bureau TENNESSEE FARM BUREAU NEWS 2 Tennessee Farm Bureau News - May 2009 www.tnfarmbureau.org TENNESSEE FARM BUREAU NEWS Farm Bureau Insurance weathers storms ISSN 1062-8983 • USPS 538960 Pettus Read, Editor and recession to post respectable year Lee Maddox, Assistant Editor Melissa Burniston, Feature Writer Given the stormy skies and gloomy our company was built for,” Law said. Offsetting the good news was a Stacey Warner, Graphic Designer financial markets of 2008, Farm Bureau “In a competitive marketplace, we are $9.1 million decline in the market value Misty McNeese, Advertising Insurance of Tennessee may have uniquely positioned as a company of of the stock portfolio. Of the company’s turned in one of the best performances value. In the face of weather catas- $1.3 billion in invested assets, $11.7 P.O. Box 313, Columbia, TN 38402-0313 in its 60-year history, officials said at trophe, we provide rebuilt lives for million in bonds were required to be (931) 388-7872 the companies’ annual stockholders policyholders. In the face of economic written down to market value. With meeting. chaos, we provide financial stability to only 1.5 percent of assets considered Issued bi-monthly by the Tennessee Farm Bureau Federation located at 147 Bear Creek “If there ever was a year to be our employees and stockholders. impaired, the long-term financial Pike, Columbia, Tennessee 38401. Non- proud of our companies, it’s this year,” impact was minimal, Stephen said. profit periodical postage paid at Columbia, said Chief Executive Officer Sonny LIFE COMPANY GROWTH DEFIES “We have a strong balance sheet, TN and additional entry offices. Scoggins, attributing the sentiment to INDUSTRY TRENDS healthy cash flows and ample liquid- General Counsel Ed Lancaster. Life insurance premiums grew ity,” Stephen said. “Our strong surplus Send address corrections to: Tennessee Farm Bureau News Offices, P.O. Box 313, Farm Bureau Insurance of by $93 million, an increase of 5.9 position provides adequate protec- Columbia, TN 38402-0313. Tennessee is the trade name for percent over 2007, reported Dennis tion to withstand the financial crisis the group of companies including Stephen, chief operating officer for Life and continue our proud tradition of Subscription rate for Farm Bureau members Tennessee Farmers Mutual Insurance Operations. In contrast, life insurance honoring all of our obligations to our (included in dues) $1 per year. Company, Tennessee Farmers sales dropped 7 percent nationwide, policyholders.” Advertising Policy: Advertising is subject to publisher’s approval. Advertisers must STOCK PRICES DIP SLIGHTLY assume all liability for content of their Based on the year’s outcomes, advertising. Publisher maintains right the stock price for Tennessee Farmers to cancel advertising for non-payment Assurance Company was announced or reader complaint about advertiser service or product. Publisher does not at $14.33 per share, a decrease of accept political, dating service or alcoholic three cents from 2007, or 0.2 per- beverage ads, nor does publisher pre-screen cent. No dividend was declared, and or guarantee advertiser service or products. the directors have authorized the Publisher assumes no liability for products purchase of up to 200,000 shares, or services advertised in the Tennessee Farm Bureau News. Scoggins said. Scoggins reminded stockhold- TENNESSEE FARM BUREAU FEDERATION ers of the stock performance of other BOARD OF DIRECTORS companies from 2007 to 2008. Among Lacy Upchurch Danny Rochelle others listed in his report, AIG fell 97.3 President Vice President percent, The Hartford dropped 81.2 Directors-at-Large percent, White Mountains was off 48 Jeff Aiken Charles Hancock percent, and Allstate posted a 37.3 Linda Davis percent decline. District Directors Assurance Company and Tennessee meaning Tennessee Farmers Life The stock price for Tennessee Malcolm Burchfiel Dan Hancock Farmers Life Insurance Company. outperformed the industry by 12.9 Farmers Life was $27.94 per share, a James Haskew David Mitchell percent. decrease of 31 cents, or 1.1 percent. Eric Mayberry Jane May P&C OPERATIONS OUTPERFORM The life company now has 258,000 “This does not support the paying of a Advisory Directors INDUSTRY DESPITE SETBACKS policies totaling $23.3 billion in force, dividend this year,” Scoggins said. The Joe DiPietro Mark Klepper February tornadoes in West and an increase of 8 percent to $1.7 billion. company’s directors offered to pur- OTHER OFFICERS AND STAFF Middle Tennessee contributed to a The company outpaced the industry chase up to 200,000 shares. Julius Johnson total of $124 million in catastrophic by 10 percent, as companies nation- The TFLIC stock price compared Chief Administrative Officer property damages for 2008. That fig- wide posted a 2 percent decline. favorably to notable industry names Wayne Harris Tim Dodd Treasurer Comptroller ure drove the companies’ losses to 80.4 Investors seeking stable returns such as Genworth Financial, which percent of premiums written, reported left the stock market and other finan- dropped 88.9 percent from 2007 to Commodities Communications John Law, chief operating officer for cial instruments in favor of annuities, 2008. Others of note were Cigna, down Joe Pearson Pettus Read Property and Casualty Operations. By Stephen said. This movement led to 68.6 percent; Lincoln Financial, off Director Director comparison, other Farm Bureau com- an increase of 15.6 percent in annuity 67.6 percent, Prudential, down 67.5 John Woolfolk Lee Maddox Associate Director Associate Director panies’ loss ratios were 73.9 percent, premiums for TFLIC, and 60 percent percent, and Principal Financial Group, Tiffany Mullins Melissa Burniston and the industry as a whole stood at nationwide. Noting that annuity pay- which fell 67.2 percent. Assistant Director Assistant Director 64.9 percent for the year. ments strain company reserves and “That’s a lot of red ink,” Scoggins Organization Public Affairs While losses were higher, profitability, Stephen said, “In this case, said as he showed a chart of the indus- Bobby Beets Rhedona Rose Tennessee Farmers Mutual continued less is better.” try losses. Director Director to be an industry leader in efficiency, In another key indicator, the com- Scoggins noted that a $400 invest- Bryan Wright Stefan Maupin operating at a frugal 20.9 percent of pany’s mortality experience was 53.6 ment in TFLIC at its inception in 1973 Associate Director Associate Director premiums for a combined ratio of percent of expected, 11 percent below would have increased 135 times to Special Programs Regional Field 101.3 percent.