TRIBUTARY
TRIBUTARY
MAY
2015
A newsletter of Two Rivers Cooperative,
a farmer-owned cooperative committed to building
profitable relationships based on integrity and quality.
UPDATE ON DES MOINES WATER WORKS LAWSUIT
Tracy Gathman-General Manager
In our last issue of the Tributary, I began discussing the lawsuit
that was being considered by Des Moines Water Works against
three northwest Iowa counties. I regret to inform you that they did
file suit in District Court, and I believe this to be just the beginning
of a long, drawn out battle. I foresee this particular lawsuit moving
through the Federal Court system and ultimately coming to a head
in the United States Supreme Court. Support groups are already
mobilizing to help ease expenses for the County’s Drainage
Districts defense costs. As you can imagine, the estimated litigation
costs for this lawsuit are staggering.
What is particularly alarming to me, in a poll released by the Des
Moines Register on February 26, 2015, 63% of Iowans support
the actions taken by Des Moines Water Works and put significant
blame on the agriculture sector. This means that not only will the
lawsuit need to be defended, but a substantial educational campaign
will also need to be put into place and funded. All Iowans need to
be informed on the various factors that go into our state’s water
quality. They simply can’t cast blame on one sector when it is
such a complex issue. Everyone wants clean water; it is a basic
necessity. Both rural and urban populations alike care about the
water they are drinking and using for consumption and production
purposes. I am certain that if we come together as Iowans, we can
solve this issue together. Working through the courts will bring
unnecessary costs and a solution may never be reached. Going
through the courts will only bring mandated regulations that may or
may not affect the final issue.
I urge all producers to reflect on your own operations.
Familiarize yourself with the Iowa Nutrient Reduction Strategy and
explore the multiple options you could potentially put into practice.
The Two Rivers agronomists are readily available to discuss your
options with you and help to establish a game plan. I will continue
to pass along information about this issue as I receive it.
NO SERVICE-CHARGE PRICE LATER PROGRAM
Beginning May 1, 2015
No service-charge price later for corn and soybeans is now
offered based on space availability.
Please check with your location on whether or not space is still
available. A significant amount of corn went into on-farm storage
last fall and winter with higher than normal moisture levels.
©2015 Two Rivers Cooperative
To ensure the quality of your grain, we urge you to think about
moving your corn before the summer heat hits. Grain quality is
paramount to the success of your operation. Take advantage of
additional marketing and storage opportunities that will keep the
quality of your grain from declining.
WAITING FOR WEATHER TO SPUR MARKET
Justin Huebner- Financial Service Representative
As corn and soybean producers, we can all agree on one
thing- the need for higher grain prices. As a grain marketer, I
was surprised to see two significant USDA reports published that
didn’t move the market. Both the March 31 and April 9 USDA
issued reports were not bullish enough to spur a rally. I believe
now, a weather issue will be the only factor to move the market in
producers’ favor.
We are seeing weather-related issues affecting the rest of the
United States, while here in the Midwest we have had favorable
spring weather thus far. The southern U.S. has been hit with higher
than average precipitation, causing extreme delays in their planting
season. Southern states are almost 30% behind where they should
be at this time of year. This could mean more acres will move from
corn to soybeans. Western states are still in a historic drought,
although the market has yet to reflect that.
Futures have been trading low and are trending lower due to the
hype of a bin busting corn crop. I don’t think we will be seeing the
big corn acres that were anticipated.
There are a number of factors that affect markets, and not just
domestically. Internationally, we are seeing the high producing
corn country of Ukraine still in a state of war. China is continuing
to look for more food to feed their population that is growing at an
astronomical rate. It is uncertain what South America’s crop will
look like next year, or what weather factors they may face. These
are all issues that will affect our prices and how we need to trade.
Speculators are currently in a net short position for grain
commodities. They are betting heavily the market will go lower
than we are currently seeing, before prices eventually improve.
I think they are sitting in this position because they believe
producers will need to be selling what is left of their old crop after
spring field work. Historically, when you look at The Commitment
of Traders Report, speculators aren’t short for very long. The last
time we saw a substantial short position in the market was 2006.
However, I do want to stress that speculators positions can change
very quickly.
I would urge all Two Rivers grain customers to attend the
upcoming Farm Leasing and Grain Marketing Workshop. This is a
great opportunity for producers to learn how to better market their
grain as well as a host of other important topics. Information on the
workshop can be found below.
FARM LEASING AND GRAIN MARKETING WORKSHOP
Friday, June 19, 2015
Breakfast served 7:30 A.M., with Workshop to follow at 8:00 A.M.
Two Rivers Cooperative - Pella Location
We invite you to attend our Farm Leasing and Grain Marketing Workshop. Industry leaders will be on hand discussing valuable topics
that could ultimately help you improve your bottom line.
GUEST SPEAKERS INCLUDE:
• Steve Johnson, ISU Extension - Developing a grain marketing plan with lower commodity prices
• Charles Brown, ISU Extension - Determining fair cash rent price
• Jake Moline, FC Stone - New marketing opportunities for Two Rivers Cooperative grain customers
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Sponsored by:
CONTRACT SEASON NOW OPEN
Scott Bensink- Petroleum Department Manager
Fixed Price Propane Contracts: Beginning June 1, propane can
now be contracted for fall and winter usage. In order to be as accurate
as possible, it is best if the previous two years usage is used to estimate
your future usage. You set your own gallons with this service, and we
can assist you in reviewing your previous year’s usage. A 10 cent per
gallon deposit will be required at the time of contracting. The contract
will run from September 1, 2015 thru April 30, 2016. Any unused
deposit will be forfeited as of May 1, 2016.
Fixed Price/Budget Billing Propane Contracts: Propane can
be contracted for fall and winter usage. In order to be as accurate as
possible, we use a five-year history to set your gallons. No deposit is
needed for this service. Sign up for the 2015-2016 budget billing
program must be completed prior to May 20th.
Dryer Propane Contract: Dryer propane (dryer only) can be
booked for the upcoming season. No deposit is required for dryer
propane. Dryer contracts run from September 1, 2015 thru December
31, 2015.
Propane Summer Fill: In order to complete the enormous task of
summer filling all of our customers’ tanks, this program will begin on
June 1, 2015, and continue through August 31, 2015. UNLESS YOU
CONTACT US PRIOR TO JUNE 1ST, WE WILL FILL ALL
CUSTOMERS’ TANKS WHILE WE ARE ON OUR ROUTES.
Cash only customers will not be summer filled unless arrangements
are made two working days prior to delivery.
Schedule-Fill Program: It is our recommendation that our
customers take advantage of our schedule-fill program to decrease
the chances of propane outages. With this service, our propane
drivers will check your tank and fill it, as needed, when they are in
your neighborhood. New customers will automatically be put on our
schedule-fill program unless you tell us otherwise. If you do not wish
to be on the fill program, we recommend you check your tank on a
regular basis. Any customer not on this program must give a minimum
of two working days to allow for the filling of their tank. A minimum
delivery of 200 gallons will also be enforced. Emergency/same-day
deliveries will be subject to an additional service charge. Cash only
customers will not be allowed on the schedule fill program.
I would also like to remind customers to look into our diesel
contracts. Lonnie has been doing a great job working with customers
on this service. The 2014 contract season was the best year in numbers
we have seen thus far, and I hope for another successful year.
CREEP FEED PROGRAM ADDS VALUE TO YOUR HERD
Ryan Healy- Beef Nutrition Specialist
Two Rivers Cooperative is offering a creep feeder program for
our producers this spring. We saw great success with this particular
program in the past and are looking forward to additional producers
seeing the multiple benefits of our creep feeder program.
The program is unique in the fact that it is a lease to own system.
Producers simply pay a monthly rate for the first three years, and after
that time period the creep feeder is theirs. Other requirements include
the purchase of four tons of feed per year.
I foresee it being a very economical year to creep feed. With record
high calf prices and feed prices relatively low in comparison to
previous years, it makes sense to invest money back into your calving
operation. We have two options for creep feed this year that I am
excited to share with you. Both products are Purina made, and the first
is our fiber-based Rangeland Calf Creep B90™. This particular feed
is effective because calves on pasture gain weight by eating grass and
milk. The bacteria in the stomach that digests grass also digests this
fiber-based creep feed, allowing the calf to have greater stamina.
Now with corn prices being as low as they have been, many
producers are considering corn as their main feed source for the
summer months. The issue with incorporating a large ration of corn
into your feed plan is that young calves run the risk of overeating
and becoming too fleshy. At Two Rivers, we offer a solution called
Accuration Creep™. This is a protein supplement that modifies the
calves intake. It will ensure the calves take more meals in smaller
quantities. With increased meals, the pH in their rumen will not
fluctuate as much, giving the bacteria a more suitable environment.
If you have any questions about our creep feeder program, I would
be happy to stop out and sit down with you to discuss what we can
provide.
County Fairs are quickly approaching and I would like to
congratulate all of the area youth in 4-H and FFA on all their hard
work throughout the year. I hope to see you all at the surrounding
county fairs!
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109 South Street
Pella, IA 50219
800-223-5512
www.tworivers.coop
Locations in
Pella- 641-628-4167
Otley- 641-627-5311
Monroe- 641-259-2232
Tracy- 641-949-6411
A CornerPost Marketing Communications Publication
Mark Your Calendars!
County fairs are right around the corner. Be sure to
attend our area fairs to support our youth!
ATTENTION AREA
YOUTH LIVESTOCK
EXHIBITORS!
Marion County Fair:
July 10th - 16th
Mahaska County Fair:
July 13th- 18th
Jasper County Fair:
July 17th- 23rd
Please fill out and return the enclosed 4-H and
FFA Support Program sheet to qualify for a
$50 cash award for all of your hard work and
dedication to your projects.
4-H AND FFA SUPPORT PROGRAM
and state fair participants who are
show its support to ALL 4-H and FFA county
PURPOSE: Two Rivers Cooperative is proud to
the sons and daughters of our members.
requirements necessary to qualify:
REQUIREMENTS: There are only three basic
county/state fair.
1. Parent must be a member of Two Rivers Cooperative.
a leader-approved project exhibited at the local
2. 4-H and/or FFA participant must complete and submit a 1-page information sheet related to project experience to Two Rivers.
must complete
3. 4-H and/or FFA participant
$50.00 to all qualified
all information sheets received and shall award
FINANCIAL REWARD: Two Rivers will review on September 1st following the conclusion of all county fairs.
participant
participants (with limit of one $50.00 award per
PROJECT INFORMATION SHEET
PARTICIPANTS NAME:
PARENT’S NAME:
ADDRESS:
PROJECT DESCRIPTION(S):
WHAT I LEARNED THIS YEAR:
PARTICIPANT’S SIGNATURE:
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PARENT’S SIGNATURE:
4-H/ FFA LEADER’S SIGNATURE:
www.tworivers.coop