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Meadow Spring FarmPA DAIRY SUMMIT 2015

ANDREW AND THOMAS BOLLINGER

HistoryFROM 1940 TO NOW

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First Farm Photo1948

Meadow Spring Farm1962

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History• The farm was first purchased in 1940 by Christian Bollinger

• Abram Bollinger started farming on the half with his father in 1948• The farm was a traditional Lancaster County farm, raising steers, chickens, hogs, and dairy cows. A

variety of crops were grown such as corn, hay, and tobacco.

• Abe transitioned the farm into a large steer fattening facility and grew 25 acres of tobacco while maintaining 20 dairy cows.

• 2nd farm was purchased in 1958

Tom’s Memories and Goals for

the Farm

December 1969

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Steer Barn Addition1971

Barnyard and Feedlot Roofs built1975

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History• Cliff and Abe purchased farms in SE Minnesota in 1979, Cliff moved west with the full intention of the rest of the family joining them in the years to come.

• Dairy became the top enterprise in 1980, app. 100 cows being milked

•In 1985 partnership was formed between Tom and Abe• The agreement was forced by the general farm economy at that time, also by changes in the banking

industry

Off to Minnesota1979

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History• Tom and Sue acquired ownership of home farm in 1989

• This situation was also very unorganized and brought out that the earlier 1985 agreement did not include ownership of cows and equipment

• Tom felt very used and frustrated

History• 1985-1995 Farm Goals:

• Work really hard!

• Pay down previous generation’s debt

• Keep food on the table, though we always had enough

• No time off!

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Little Andy BollingerEven at a young age, Andy knew he wanted to be a farmer.

History• Andy graduated from high school in 1995, wanting to farm his entire life

• He attended a Dairy Management school in Minnesota for a year

• His eyes were opened to new things in the dairy industry

• Married Andrea Mylin in 1997

• Construction on a new free-stall barn, bunker silos, and a step up milking parlor were started

•A second free-stall barn was built in 2002

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Barn Roof CollapsesFebruary 12, 2003-

Area between holding area and Pre-Fresh/Post-Fresh pen falls in after a blizzard. Luckily, no animals or people were hurt.

History• Andy joined partnership in 2004, took over Abe’s last 10% of partnership

• Abe was 86 at the time

• The family decided to purchase neighboring farm in 2008. Tom and Sue graciously allowed the farm to be in Andy and Andrea’s name

• This gave Andy and Andrea ownership and responsibility

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The Farm Continued to Grow…2009-2014

History• Amount of employees was steadily increasing

•Heifer barn and manure separator system were built in 2009

• Meadow Spring Farm became entangled in a legal situation that required a lot of emotional energy, which, while being extremely stressful, the situation helped us to focus on what was important in life and led us to some key consultants who have become a valuable resource to our farm today

• One of these consultants was Jeff Ainslie from Red Barn, who helped us apply for a transformational team grant from the Center for Dairy Excellence.

• This led us to…

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Next Big Transition-2012• 330 cows were being milked in a double 6 step-up parlor 3x a day

• Tom and Sue decided it was time to start the process of transferring the farm properties and shares of the partnership. Through a year of planning, prayer, and excellent advice from professional advisors, the process was complete by the end of the year.

• Other big changes happened that year:• Andy and Andrea went away for a weekend, and came home to hear that Tom had decided to build a new parlor!

• Because it was a remodel, the amount of permits needed was minimal, and construction started very quickly

• Double 12 parallel parlor was completed by September 2012

• Also constructed a calf transition barn, dry stack manure/animal mortality composting building

Heifer Barn2009

Cow Barn2002

Manure Separator

2009

2002

1980

Transition Barn2012

Feed Storage

Machine Shed/Shop1992

The Farm Today

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Farm TransfersFROM THE OLDER GENERATION TO THE NEWER GENERATION

Transition of the Farm From Generation to Generation

ABRAM TO TOM TOM TO ANDY

• Difference of values• Little trust• Family was for work

• Controlling• Lack of communication• Unwilling to use professional

help• Minimum documents• Agreements were all verbal

• Similar Values• Family • Trust

• Open communication• Used professional help

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Home Farm Transfer• Andy and Andrea purchased at a discount rate

• Set up a 20 year mortgage to Tom and Sue-ensures them financial security until they are 85

•Interest only the first 5 years because of substantial debt load

•In addition to the guaranteed monthly payment for the farm, a 2nd mortgage of $300,000 was set up, which can be used to purchase a retirement home if needed.

•If not needed, the mortgage will be forgiven.

Partnership Transfer•Tom and Sue gifted additional 21% to Andy and Andrea

•This put:

Tom Andy

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Millway Farm (2nd farm) Transfer•Set up Bollinger Family Partners, LP and Bollinger Family Partners GP, LLC

•Benefits:• To Andy-guarantees farming of that property

• To Richie, Phil, and Val-receive rental income from property

• All siblings must agree before farm is sold