Standards and Commitment to Our Customers

As we continue to strive for excellence in serving our members, I would like to notify you of important updates to your cooperative. This message aims to reaffirm the value of the cooperative model and our continued commitment to serving our owners; provide important updates regarding the accounting and tax industry profession; and notify you of some updates to our financial services requirements to allow us to continue to deliver value to you and your business.

The Cooperative Value

As a cooperative owned and governed by the same farmers, fishermen and forestry members who borrow from it, Farm Credit East is different from most commercial lenders. Our cooperative ownership keeps our focus on providing sound credit and financial services to its members. Farm Credit East’s board of directors, who are also customers, are actively engaged with management to ensure the cooperative continues to provide high value to members into the future. While business practices may evolve over time, our cooperative governance ensures changes in best practices remain member focused.   

Accounting and Tax Talent 

Over the past few years, many accounting firms have begun offshoring tax and accounting work. This has been the result of a shortage of domestic talent — a trend that does not look to be slowing down. 

Farm Credit East has never and has no plans to offshore our members’ work. Given the breadth of Farm Credit East’s geographical footprint, we have been successful in hiring almost two dozen tax and accounting professionals over the last 24 months. However, retirements of CPAs across the Northeast are causing an unprecedented demand for our services. 

To ensure a best-in-class customer and employee experience moving forward, we are making a few changes that will position Farm Credit East to continue providing high quality, value-added services to you and your businesses. Employees and customers alike have a role to play to achieve a best-in-class status for our cooperative.

2025 Standards and Commitment 

We are making three primary changes as we enter 2025. These changes pertain to price, information requirements and submission deadlines, all to ensure our team continues to deliver best-in-class service.

1. Minimum Pricing
   • We are not changing our $250 minimum pricing¹ for a basic 1040 tax return without a business schedule.
   • 1040 tax returns with a Schedule C,E,F that encompasses a business will have a minimum pricing of $750.²
   • For customers who require 1099s to be completed for their vendors, the pricing will be $150 for the first 10, with $15 for each additional 1099. Any accounting work to determine the list of vendors will continue to be billed at an hourly rate. 
   
   

   Why?

   We are extremely proud of our team. They are put through rigorous agricultural training to serve our customers and are in high demand in the marketplace. Typically, tax and accounting services are billed hourly. In some cases, staff billing rates have not increased in ten years — at a time of inflation not seen in over 30 years. National benchmark accounting industry data puts the average cost of a 1040 over $1,200. 

   By setting a $750 minimum price for business returns, we can ensure that we remain both competitive and affordable at a time of unprecedented demand for accounting and tax providers. Also, customers can expect a 5-6% increase in their tax preparation costs over the next couple of years. The use of Farm Credit Connect, our digital customer portal that allows customers to self-serve, is helping to minimize cost increases without negatively impacting the customer experience.

2. Information Requirements
   • If business customers are not providing a QuickBooks or CenterPoint backup, they must submit a profit and loss report or summarized financials (not check stubs, receipts or bank statements) or they will be placed on extension and their return completed after April 15.
   
   

   Why?

   The requirement will reduce significant additional recordkeeping during an already busy tax season. Farm Credit East is happy to engage those customers who may need additional recordkeeping services, while continuing to prepare their tax returns. However, the returns for those customers who need additional recordkeeping services will be completed after April 15 to not delay those customers who submit complete information. 

3. Submission Deadlines
   • Information to process 1099s must be received by January 17, with a processing cutoff date of January 31.
   • Customers who have their returns completed after April 15, will receive communication in May requesting all outstanding information required to prepare the tax return (excluding any outstanding K-1s that have yet to be received) by June 1 to ensure timely completion of the return.
   
   

   Why?

   By imposing a 1099 cutoff date, our dedicated staff can get an earlier start on the 12,000 tax returns Farm Credit East prepares annually.

   For those tax returns that are prepared for the September and October filing deadlines, we are requesting information by June 1 to avoid a surge of work with a tight turnaround in the fall. This will allow staff to better manage customer demands and expectations. 

Our Commitment to You

As a cooperative, we want to ensure our customers are informed of the changes we are making and how they will allow us to continue to deliver the service you have come to expect. In order for us to continue to recruit, retain and promote agricultural experts who are there for you in good times and in bad, we need to ensure an all-around best-in-class experience for our customers and our team. 

At Farm Credit East’s annual planning meeting, the board of directors and management doubled down on our commitment to providing a best-in-class employee and customer experience. From high quality tax advice from our dedicated team of experts to a dedicated board of directors, Farm Credit East aims to continue delivering best-in-class value to its customers.

Sincerely,  

Dario Arezzo 
Chief Financial Services Officer 
Farm Credit East  

 

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¹ $250, or time entered, whichever is greater.

² $750, or time entered, whichever is greater.