2018 Clifton Larson Allen LLP WEALTH ADVISORY OUTSOURCING

© 2018 Clifton. Larson. Allen LLP WEALTH ADVISORY | OUTSOURCING | AUDIT, TAX, AND CONSULTING Investment advisory services are offered through Clifton. Larson. Allen Wealth Advisors, LLC, an SEC-registered investment advisor Economic Update Far Western NSAC– May 23, 2019

• • Ag Economic Update Trends in Crop Production & Exports Review of pricing and production – Major CA crops Deeper Dive - Tomatoes © 2018 Clifton. Larson. Allen LLP Agenda 2

© 2018 Clifton. Larson. Allen LLP WEALTH ADVISORY | OUTSOURCING | AUDIT, TAX, AND CONSULTING Investment advisory services are offered through Clifton. Larson. Allen Wealth Advisors, LLC, an SEC-registered investment advisor Marco Economic Outlook

© 2018 Clifton. Larson. Allen LLP Growth Forecast 4

© 2018 Clifton. Larson. Allen LLP Dollar Trends 5

© 2018 Clifton. Larson. Allen LLP Trends in Real Farm Income and Equity 6

© 2018 Clifton. Larson. Allen LLP Real Estate Debt Accelerates Total Farm Debt 7

© 2018 Clifton. Larson. Allen LLP Debt-to-Assets Low, But Total Highest Since 1988 8

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© 2018 Clifton. Larson. Allen LLP WEALTH ADVISORY | OUTSOURCING | AUDIT, TAX, AND CONSULTING Investment advisory services are offered through Clifton. Larson. Allen Wealth Advisors, LLC, an SEC-registered investment advisor Major Crops

© 2018 Clifton. Larson. Allen LLP Price Trend Down – Crop Supply Exceeds Demand 11

© 2018 Clifton. Larson. Allen LLP Global Stocks – Is the Trend Turning Positive? 12

© 2018 Clifton. Larson. Allen LLP Trade Dispute Effects on Soybean Prices 13

© 2018 Clifton. Larson. Allen LLP Not All is Lost in Soybeans 14

© 2018 Clifton. Larson. Allen LLP Some Prices Expected to Edge up in 2019 15

© 2018 Clifton. Larson. Allen LLP WEALTH ADVISORY | OUTSOURCING | AUDIT, TAX, AND CONSULTING Investment advisory services are offered through Clifton. Larson. Allen Wealth Advisors, LLC, an SEC-registered investment advisor Livestock and Milk

© 2018 Clifton. Larson. Allen LLP Real Prices Trend Down – Production Exceeds Demand 17

© 2018 Clifton. Larson. Allen LLP African Swine Flu (ASF) – Global Pork Shock 18

© 2018 Clifton. Larson. Allen LLP Milk Near 5 Year High (but Still Too Low) 19

© 2018 Clifton. Larson. Allen LLP Record High Meat & Milk Production in 2019 20

© 2018 Clifton. Larson. Allen LLP WEALTH ADVISORY | OUTSOURCING | AUDIT, TAX, AND CONSULTING Investment advisory services are offered through Clifton. Larson. Allen Wealth Advisors, LLC, an SEC-registered investment advisor Trade

© 2018 Clifton. Larson. Allen LLP Ag Exports Flat – But China Share Falls Sharply 22

© 2018 Clifton. Larson. Allen LLP Global Demand Drives Export Growth 23

© 2018 Clifton. Larson. Allen LLP …and Drives Growth in US Feed Grain Exports 24

© 2018 Clifton. Larson. Allen LLP New FTAs may Impact US Access to Top Markets 25

© 2018 Clifton. Larson. Allen LLP USMCA Strengthens North American Market 26

© 2018 Clifton. Larson. Allen LLP WEALTH ADVISORY | OUTSOURCING | AUDIT, TAX, AND CONSULTING Investment advisory services are offered through Clifton. Larson. Allen Wealth Advisors, LLC, an SEC-registered investment advisor USDA Programs

© 2018 Clifton. Larson. Allen LLP Farm Programs: Crop Insurance Increases 28

© 2018 Clifton. Larson. Allen LLP ARC/PLC Expected Per Acre $ Over Five Years 29

© 2018 Clifton. Larson. Allen LLP Dairy Farm #s Down – But Bigger Size 30

© 2018 Clifton. Larson. Allen LLP Net Benefits for Median-Sized Dairy (900 Cows) 31

© 2018 Clifton. Larson. Allen LLP Growing Locally and Selling Globally 32

© 2018 Clifton. Larson. Allen LLP Growing Economies, Growing Supplies, and Falling Real Food Prices Improve Food Security 33

© 2018 Clifton. Larson. Allen LLP WEALTH ADVISORY | OUTSOURCING | AUDIT, TAX, AND CONSULTING Investment advisory services are offered through Clifton. Larson. Allen Wealth Advisors, LLC, an SEC-registered investment advisor Major CA Crops – Pricing and Production

© 2018 Clifton. Larson. Allen LLP Almonds 35

© 2018 Clifton. Larson. Allen LLP Grape Production Trends 36

© 2018 Clifton. Larson. Allen LLP Grapes 37

© 2018 Clifton. Larson. Allen LLP Oranges 38

© 2018 Clifton. Larson. Allen LLP Walnuts 39

© 2018 Clifton. Larson. Allen LLP Pistachios 40

© 2018 Clifton. Larson. Allen LLP Strawberries 41

© 2018 Clifton. Larson. Allen LLP Peaches 42

© 2018 Clifton. Larson. Allen LLP Cherries 43

© 2018 Clifton. Larson. Allen LLP Lettuce Pricing and Production 44

© 2018 Clifton. Larson. Allen LLP WEALTH ADVISORY | OUTSOURCING | AUDIT, TAX, AND CONSULTING Investment advisory services are offered through Clifton. Larson. Allen Wealth Advisors, LLC, an SEC-registered investment advisor Deeper Dive - Tomatoes

© 2018 Clifton. Larson. Allen LLP Tomatoes Pricing and Production 46

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© 2018 Clifton. Larson. Allen LLP WEALTH ADVISORY | OUTSOURCING | AUDIT, TAX, AND CONSULTING Investment advisory services are offered through Clifton. Larson. Allen Wealth Advisors, LLC, an SEC-registered investment advisor Finally - Hemp

• Sec. 12619 of the Farm Bill removes Hemp from the Controlled Substances Act © 2018 Clifton. Larson. Allen LLP Hemp – Indicates that it is not “marihuana” • Eligible for crop insurance • A land rush in on – How long will the “good times” last? 51

© 2018 Clifton. Larson. Allen LLP WEALTH ADVISORY | OUTSOURCING | AUDIT, TAX, AND CONSULTING Investment advisory services are offered through Clifton. Larson. Allen Wealth Advisors, LLC, an SEC-registered investment advisor Questions?

Paul Neiffer, CPA Paul. Neiffer@claconnect. com 509 -823 -2920 (direct) 509 -961 -9739 (mobile) Blog: www. farmcpatoday. com linkedin. com/company/ cliftonlarsonallen facebook. com/ cliftonlarsonallen twitter. com/CLAconnect youtube. com/Clifton. Larson. Allen © 2018 Clifton. Larson. Allen LLP CLAconnect. com