Fieldviews
SPRING 2015 EDITION
Celebrating 100
Years of Service
Page 5
Building for Future
Needs
Page 6
Plant With One Eye
on the Markets
Page 18
Spring Blossoms at
Garden Center
Page 19
P E O P L E
•
P R I D E
•
P U R P O S E
New Look for a New Century
As you read this edition of Fieldviews, UFC looks to the next century of serving
our members.
W
elcome to the first issue of UFC Fieldviews
magazine. This magazine will focus on what
matters to you and to the communities UFC
serves.
Moving from a newsletter to a magazine
is just one of the ways
we’re improving communication with our
member-owners as we
enter our second century as a company. We are
also working towards a more interactive web presence, so be on the lookout for us on social media.
If you have ideas for improving this magazine,
including specific stories you’d like to see, please
contact us. We promise to take your input seriously.
Sincerely,
Jeff Nielsen
General Manager/CEO
STRONGER ROOTS.
HEALTHIER CROPS.
BETTER YIELDS.
XLR-rate® liquid starter and foliar fertilizers promote early green-up in
colder, wet soils and stronger root development and plant recovery.
They’re a proven way to overcome challenges for a great harvest. Ask
your local agronomist about how XLR-rate can improve yields and profitability.
800-642-4104
© 2015 CHS Inc.
chs5413_CHS_VistaComm_HalfpgAd.indd 1
2
www.ufcmn.com
2/10/15 8:38 AM
UFC DIRECTORY
AgQuest Finance—507-647-6606 Ext. 6749
Bird Island Elevator—320-365-4012
Brownton Shuttle—320-328-4002
Cologne Feed Mill—952-466-5518
Corporate Office—507-647-6600
Gaylord Ag Center—507-237-4203
Gaylord C-Store—507-237-2281
Gibbon C-Store—507-834-6615
Grain Marketing—507-647-6601
Green Isle C-Store—507-326-5866
Hamburg Ag Center—952-467-3111
INSIDE THIS ISSUE:
Hector Ag Center—320-848-2296
New Look for New Century . . . . . . . . . . . . . . . . . . . Page 2
Klossner Elevator—507-359-4519
Creating Value for Future Generations . . . . . . . . . . . Page 4
Klossner Station—507-359-4503
Celebrating 100 Years of Service . . . . . . . . . . . . . . . Page 5
Lafayette Ag Center—507-228-8224
Building for Future Needs . . . . . . . . . . . . . . . . . . . . Page 6
Lafayette C-Store—507-228-8364
Sorting a Mountain of Info . . . . . . . . . . . . . . . . . . . . Page 8
Lafayette Elevator—507-228-8221
Earn Cash Back on Every Purchase . . . . . . . . . . . . . . . Page 9
Lafayette Seed Shed—507-228-8669
Credit Management This Spring . . . . . . . . . . . . . . . .Page 11
Livestock Service Center—507-359-2970
2015 Financial and Insurance Potpourri . . . . . . . . . . Page 13
Norseland Ag Center—507-246-5300
It All Started Here . . . . . . . . . . . . . . . . . . . . . . . . . .Page 14
Risk Management—507-647-6613
Put Your PC or Cell Phone to Work . . . . . . . . . . . . .Page 15
UFC Farm Supply-Burnsville—952-890-5296
Help Us Understand Your Needs . . . . . . . . . . . . . . . Page 17
UFC Farm Supply-LeSueur—507-665-6421
Plant With One Eye on the Markets . . . . . . . . . . . . Page 18
UFC Farm Supply-Maple Plain—763-479-2123
Spring Blossoms at Garden Center . . . . . . . . . . . . . Page 19
UFC Farm Supply-Waconia—952-442-2126
More LP Storage Benefits Farmer and Co-op . . . . . .Page 20
Waconia Energy Office—952-442-2126
Winthrop C-Store—507-647-5931
Poultry is Big Business . . . . . . . . . . . . . . . . . . . . . . Page 21
Winthrop Chemical Warehouse—507-647-6615
In Whirlwinds of Change, Some Things Remain . . . . Page 22
Winthrop Elevator—507-647-5311
Fieldmaster Boosts Locomotive Power . . . . . . . . . . .Page 26
©2015 United Farmers Cooperative. All Rights Reserved. Published in partnership with VistaComm
Winthrop Energy Office—507-647-6602
®
(www.VistaComm.com).
3
UFC board engages in long-term planning.
Creating Value
for Future
Generations
By Jeff Nielsen, General Manager/CEO
“The best way to predict the future is to create it,” said Abraham Lincoln.
O
ver the last decade, the United Farmers
Cooperative board and leadership team has
spent a great deal of time discussing the future
of farming and rural communities, and what we
must do to play a relevant role in that future.
Previously, we spent most of our time tracking past financial performance. Then it dawned on us: although tracking
history is important, we can’t do anything about it. The real
value is in understanding history and using it to influence
where we are going.
So, instead of spending 80% of our time evaluating where
we’ve been, we now spend 80% thinking about where we
need to be and how to get there. This change in emphasis has
helped UFC’s leadership manage significant growth. We’ve
become a stronger company, with an intentional focus on longrange planning that will allow this business to sustain itself.
By its own definition, the cooperative model has no end
game. When the current board or leadership staff retires,
there is no auction. Nobody cashes out. Our mission is to
grow the value of this business so we can hand it to the next
generation—just as our forefathers did.
It is notable that the current vice chairman of UFC’s board
of directors is a gentleman by the name of Todd Nelson.
Todd’s great grandfather was a founding member of UFC
and also served as its vice chairman. In fact, Todd’s great
grandfather, C.H. Nelson, was the cooperative’s first milk
patron in 1915.
Our commitment to create the future stems from the fact that
we do not own this company. We’re just stewards for a time.
The results of our planning
Your board and leadership staff has identified the following capital projects for completion during our 100th year in
business:
•A new central agronomy dispatch and repair shop in
Winthrop will allow us to efficiently utilize our equipment
and maintain it in top condition.
•Expansions at all three UFC feed mills: Cologne, Klossner,
and Le Sueur.
•Several million dollars of investment in trucks, equipment,
and staffing across all divisions will keep pace with growing demands for our services.
4
www.ufcmn.com
Beyond 2015, we’re exploring the construction of a central distribution terminal for crop nutrients adjacent to our
Brownton grain site.
In recent years, we’ve experienced a shortage of transportation (both river and rail) for critical fertilizer products at the
worst possible times. A new distribution terminal will assure
adequate supplies of these products for all UFC Agronomy
locations by utilizing our unit train loading facilities to bring
them into storage during the off-season.
This project will incorporate another long-standing principle—cooperation among cooperatives. It will only become a
reality as we work with our regional cooperative, CHS Inc., to
provide storage and distribution services for other cooperatives. A large distribution terminal in Central Minnesota will
allow CHS to efficiently move nitrogen to the country upon
completion of their domestic fertilizer production plant in
Spiritwood, ND.
See “Building for Future Needs” on page 6 for more on
this important project.
People • Pride • Purpose
Another aspect of our long-range planning is making sure
we have the right people to lead the businesses of UFC.
This emphasis has resulted in a constant evolution of the
UFC staff as we grow. While growth provides challenges, it
also offers an opportunity to recruit and develop talent with
expertise that can help UFC and its member-owners succeed
in the future.
We recruit and develop talent both from within the company and from the outside. An example of the latter is Dave
Eckhoff, who previously worked for one of our vendors.
Realizing his extraordinary leadership skills, we hired Dave in
January as our new Vice President of Agronomy. See Dave’s
introduction on page 6 of this magazine.
As we grow, you will continue to see these kinds of changes.
We’re very proud of the value we’ve created for our
member-owners for the past 100 years. With our intentional
approach to long-range planning, we expect UFC to continue to provide value, just as it has since its founders met to
organize the cooperative in 1915. We fully anticipate that this
member-owned company will still be around to celebrate its
200th anniversary. ●
We’re excited and privileged to begin a second century of service to
Central Minnesota. In these days of mergers, sellouts, and business
failures, you can take great pride in the fact that United Farmers
Cooperative, with its humble beginnings as a Lafayette creamery in
1915, continues to make a difference and add value to life and business.
T
o honor UFC’s 100th anniversary, we’re working
on a video and a special edition of Fieldviews to
be shown and distributed later in the year.
A special event is being planned for Friday
evening, Aug. 21, 2015, that will combine our
ever-popular customer appreciation pork chop picnic with
live music and a program to celebrate the history of your
local cooperative.
This 100th year celebration will take place at UFC’s
Berdan Event Center in Winthrop. It will include pork chops
grilled by area pork producers, with live country music performed by the Church of Cash, the Midwest’s Best Johnny
Cash Tribute Show. This entertainment should have everybody kicking up their heels.
Be sure to mark Friday, Aug. 21, in your calendars so
nothing prevents you from attending this extraordinary event.
We’ll conclude our first century celebration with our 100th
Annual Stockholders Meeting next January. More details and
other events will follow. ●
The Church of Cash
will perform at our
100th year celebration
on Aug. 21.
5
Introducing
Dave Eckhoff
Building for Future Needs
By Dave Eckhoff, Vice President of Agronomy
As your operation efficiencies increase, UFC Agronomy
strives to stay ahead of your needs.
O
ne way we’re doing this is by
establishing new training guidelines so we can provide you
with the most knowledgeable
and proficient custom applicators in the business. We’re putting into
place a set of checks and balances for our
application crews that will minimize error,
while ensuring the highest customer satisfaction, speed, and accuracy. These efforts
are being led by Chad Wilson and Aaron
Schwab.
Another way we’re anticipating your
future needs is by investing in facilities that
will ensure you an adequate supply of fertilizer.
Due to expanding agronomy business
and tight fertilizer timelines to bring product to the countryside, UFC has decided to
build a large distribution terminal for crop
nutrients. Preliminary plans call for construction to begin in Brownton, near our grain
rail facility, in the fall of 2016. The terminal
should be ready to receive product in the
fall of 2017.
The proposed terminal would be strategically accessible to all existing UFC
Agronomy facilities and would supply these
locations and their customers with additional tons of fertilizer in season. It would
provide opportunity to UFC’s market area
between Hector and Waconia, giving us
the resources to better serve customers in
the area, as well as the ability to expand
Brownton
agronomy services to existing grain customers. (See map and position of UFC
Agronomy locations in relation to the proposed terminal.)
Besides dry urea fertilizers, the
Brownton terminal would add liquid fertilizer storage soon after it opens and would
potentially consider other liquid fertilizer
options to help cut costs and expand our
trade area.
An important part of this plan involves
the nitrogen fertilizer manufacturing
plant that CHS Inc. is planning to build at
Spiritwood, ND. CHS needs a distribution
system for its product. Our proposed distribution terminal will act as a hub, where
the regional cooperative can ship unit trains
of urea all year round, in preparation for
supplying UFC and other cooperatives in
Central Minnesota.
The proposed distribution terminal will
be 100% owned by UFC. CHS will pay storage and put-through fees on the fertilizer
it ships into and out of the terminal. This
partnership is a crucial component of UFC’s
plan to utilize this facility’s space for fertilizer storage and distribution.
As we plan for the future, please keep
the following thought in mind. Whether it’s
assembling a highly trained team of applicators or expanding our fertilizer distribution
system, we do it all to anticipate and meet
your future needs. We have no other motivation than to add value to your operation. ●
Our new Vice President
of Agronomy, Dave Eckhoff,
has worked closely with the
management, sales force,
and members of United
Farmers Cooperative for the
past five years as a district
sales manager for Producers
Hybrids.
Prior to that, he served
as agronomy manager
for Mid-County Coop in
Cologne and held positions
in sales and management
with an agronomy company at Big Lake, MN. Dave
has also managed a large
farming operation in North
Central Minnesota.
Dave, his wife, Melissa,
son, Nicholas, and daughter, Madilyn, live next to the
family farm where he grew
up. ●
UFC AGRONOMY FACILITIES
Brownton Terminal
Gaylord: Hamburg: Hector: Lafayette: LeSueur: Norseland: Waconia: Winthrop:
chemical warehouse:
fertilizer plant:
6
www.ufcmn.com
Coming in 2017
507-237-4203
952-467-3111
320-848-2296
507-228-8224
507-276-9855
507-246-5300
952-442-7312
507-647-6615
507-647-6610
Gentlemen, calibrate
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One that CROPLAN® takes seriously. Selected from
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we outgrow the competition, year after year, bushel
after bushel. Visit croplan.com for more information.
WinField is a trademark and CROPLAN is a registered trademark of Winfield Solutions, LLC.
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fat, guaranteed amino acids and organic
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ProForceFeed.com
© 2015 Cargill, Inc. All Rights Reserved.
7
Sorting a Mountain of Info
SPECIALISTS PRESENT THE BEST OPTIONS AND YOU DECIDE
By Steve LeBrun, Vice President of Feed
Information and technology are
expanding rapidly in the livestock
industry and in general agriculture.
E
xperts tell us human knowledge doubled every
century before 1900. By the end of World War II,
knowledge doubled every 25 years. Today, human
knowledge doubles, on average, every 13 months.
Some believe knowledge will eventually double every
12 hours. If this is the case, we all need help keeping up with
the latest trends in our industry.
Besides supplying quality feed products, those of us in the
UFC Feed Division consider it our responsibility to provide
you with the technical help and expertise necessary to stay
relevant in your specific business—swine, dairy, beef, poultry,
equine, or pets.
We employ a sales staff of eight full-time and six part-time
specialists with extensive knowledge of all the livestock for
which we supply feed. Many of these specialists have over 20
years of experience in their field, but they’re still gathering
and applying new information and practices.
Other, younger team members are learning
the basics from the senior staff while introducing all of us to new ideas and technologies beneficial to this
fast-changing industry.
In addition to specialists, the UFC Feed Division can provide you with products from several regional feed companies
that represent the newest technologies. The ability to deliver
branded products from several companies, both individually
and within our formulated diets, means cost-effective and
efficient ration formulation for you.
In today’s business environment, you must make multiple
decisions every day. Most of these decisions will directly
affect the profitability of your operation. Our goal is to gather
and sort through all available information. We’ll present the
best options and let you make the final decision as to what is
best for your livestock operation.
I encourage you to make use of the UFC Feed Division’s
resources. You can access both our products and our expertise by calling any UFC location and asking to speak with a
livestock specialist. That specialist will answer your questions
or put you in touch with someone who can. ●
UFC livestock specialist Roger Landon (left) works with Michael
and Rolf Annexstad (center and right) on feed rations.
8
www.ufcmn.com
Earn Cash Back on Every Purchase
By Dean Meyer, Vice President of Consumer Goods and Retail
Buying a shrub, a hammer, or even an ATV this spring at UFC Farm
Supply? You could be earning patronage on that purchase. After having a profitable year, in December 2014, the UFC Board of Directors approved a cashback dividend (refund) for the first time ever on consumer goods and hardware.
Anyone, not just members, who purchased products and services from UFC Farm
Supply and had a UFC account, were eligible to receive a patronage dividend.
T
he checks that were distributed in December were
sent to everyone who had a UFC account and had
done business with UFC Farm Supply from Sept.
1, 2013 to Aug. 31, 2014 - our latest fiscal year.
Many had no idea where the money came from,
and we had the pleasure of telling them, “This is possible
because of the merger between Waconia Farm Supply and
United Farmers Cooperative a little over one year ago. We’ve
become a stronger company.”
This gives us the ability to return part of our profits to our
patrons. The total amount distributed to UFC Farm Supply
patrons in 2014 was $65,241 - which was about 2¢ per dollar on purchases of consumer goods and hardware, and 1¢
per dollar on powersport purchases. Personally, I think it’s a
great way to thank you as a customer for doing business with
us and for making UFC and UFC Farm Supply a success. I
ask you, “Where else can you buy hardware and get money
back?”The patronage earnings distributed to you may be
tax-free; it depends on the purpose of the purchase. If the
purpose was household or personal in nature, the patronage distribution is tax-free. If the purchase was a business
expense, then the patronage distribution must be reported as taxable income. Remember, if that is true, then the
expense of the purchase is deductible as well.To ensure you
have a UFC account, check with one of our locations. We just
need your name, address, and federal employer identification
number or social security number, which is required by law
for UFC to pay a patronage refund. UFC distributes 50% of
qualifying purchases in cash.
The remaining balance of 50% provides equity to UFC
until it is redeemed, according to the policy of the Board
of Directors. Currently, UFC retires equity when our patrons
reach age 69, which is when you are eligible to receive the
remaining balance in one lump sum. Going forward, your
purchases at UFC Farm Supply will make you eligible to
receive a patronage dividend from UFC if UFC is profitable
again in 2015, which we fully anticipate. ●
9
In-furrow Application in Corn:
Laying the Foundation for Success
Benefits of Headline® Fungicide Applied In-furrow
• Aids in controlling soilborne diseases like Rhizoctonia solani
• Enhances root growth and seedling vigor
• Improves cold tolerance
Headline® Injection Kit
Headline fungicide provides
convenient and effective disease
control and additional plant health
benefits that deliver more rapid and
uniform emergence.
More Rapid and Uniform Emergence with Headline® Fungicide
Headline® Fungicide In-Furrow Enhances Root Growth
For easy and consistent injection of
Headline® EC into your liquid starter
Hastings, MN spring 2013. Pioneer 0533. 18 days after planting. Dosatron applied.
Contact your local UFC location for more
information on how an in-furrow application of
Headline EC can help you maximize your yield
potential through even emergence, enhanced root
growth and EPA recognized plant health beneeits.
Credit Management This Spring
By Joel Dahlgren, General Counsel and Chief Risk Officer, and Geoff Lemke, Credit Manager
United Farmers Cooperative provides convenience credit so you can conveniently purchase products and services from this customer-owned company. Ninetynine percent (99%) of UFC’s customers pay the amounts owed on their accounts
just as they are required to do under the cooperative’s credit policy.
T
his spring, we may ask a few of you about your
plans for payment of accounts. We may ask you to
sign an authorization so we can contact your lender
and confirm that credit is available for spring purchases. We offer alternative financing approaches
for spring inputs, and we want to make sure you have sufficient time to pursue those alternatives before the crunch of
spring planting.
We mean no harm or frustration to anyone by wanting to
be a little more intentional about how credit is extended. Our
accounts receivable reached $15.5 million last spring in the
month of June, so UFC’s credit exposure is high during the
planting season. We owe it to the 99% who abide by UFC’s
credit policy to manage the extension of credit, so that they
do not end up paying for another customer’s unpaid account.
UFC’s basic credit policy is to require payment for items
purchased in one month by the last day of the following
month. In theory, a customer who purchases products and
services on the 1st day of a month could get up to two
months, or 60 days, of free credit.
We want to honor everyone’s good intentions, and we
know that no one wants to be in a position where they cannot pay for their purchases. However, we also know that,
despite everyone’s best efforts, financial stress occasionally
makes it difficult for a customer to pay their account. We
must be prepared for this possibility, and that is why we
occasionally review the creditworthiness of our customers.
If you have credit questions prior to spring, please do not
hesitate to contact our credit manager, Geoff Lemke, or a
vice president of any UFC business unit. ●
11
Nutritionists, specialists, and innovative solutions for every species.
Feed Management and Sampling
Ration Balancing
Team Building
Farm Walk-Throughs
Contact your Form-A-Feed or UFC representative for
more information about our product offerings, and our
dedication to professionalism, quality products, and
innovative solutions.
Also be sure to check out our website to find articles
and resources on current industry topics. Be sure to
subscribe to our beef, dairy and swine blogs so you don’t
miss out!
Connect with us now at www.formafeed.com!
740 Bowman Street • Stewart, MN 55385
800.422.3649 • www.formafeed.com
Vince Sloot and let them hel
insurance option th
2015 Financial and Insurance Potpourri
Vince Sloot
By Vince Sloot, AgQuest Business Relationship Manager/Crop Insurance Specialist
cell 507-995-9029
As we approach the planting season, here are some aspects
of risk
t.free 866-998-3266
management that are worthy of your attention.
[email protected]
www.agquest.net
6. We recently had the privilege
of hosting Dr. Art Barnaby,
1. Besides updating your base acres and yields, and making your
www.ufcmn.com
program election (PLC, ARC-CO, or ARC-I) through FSA, be
sure you are “conservation compliant” by verifying that you
have a current AD-1026 form on file. Non-compliance would
jeopardize your crop insurance premium subsidies!
2. If you intend to break new ground or native sod, or if
you have done so already, please contact your AgQuest
Insurance agent. New rules pertain to breaking native sod
and new ground. We don’t want you to be penalized for
non-compliance, resulting in zero premium subsidies on
those acres.
3. These are the earliest planting dates allowed to ensure full
insurance benefits: wheat – March 21; corn and beets –
April 11; soybeans – April 21.
4. Late planting dates: wheat - May 15; corn and beets - May
31; soybeans - June 10. On any acreage planted after
these dates, coverage guarantee is reduced 1% per day,
up to 25 days.
5. In recent years, volatile weather has turned prevent plant,
re-plant, hail, and wind/green snap into somewhat familiar
words. If any of these events appear on your radar this
year, consult with us for a clearer understanding of your
options.
Ag Economist-Kansas State, to explain the 2014 Farm Bill.
To watch a video of this entire session, set your Internet
2015 ads.indd 1
browser to www.goo.gl/ENIOBL.
AgQ
Some timeless principles discussed in previous issues of UFC
Fieldviews are worth repeating at this time of year. A noted ag
economist recently reminded a large gathering of ag professionals to avoid putting too much focus on trying to sell at market
highs or trying to lock in inputs at their absolute lowest levels.
Instead, put more effort into managing for the best margin—
even if those margins happen to be negative, like this year.
Surveys reveal the vast majority of us only have a ballpark
idea of our break-even points. Strive to know your breakevens. By now, opportunities exist to start getting those
break-evens into sharper focus.
Here’s to your success in 2015.
For more information on the risk management tools
available to you, contact UFC’s AgQuest representatives,
Vince Sloot at 507-995-9029 or Dawn Wickenhauser at 507647-6606 x 6749. You may also email us at vsloot@agquest.
net and [email protected] or visit us online at
www.agquest.net. ●
Working Together, We Find The Way!
simple. convenient. flexible.
Together...
We Find
The Way!
AgQuest partners with UFC to bring you the best
Finance & Insurance options available.
We work right next to your DSM to
offer you the best option for your farming needs.
Call your Account Manager or your AgQuest representative
Vince Sloot and let them help find the best financing &
insurance option that is right for you!
Vince Sloot
cell 507-995-9029
t.free 866-998-3266
[email protected]
www.agquest.net
www.ufcmn.com
2015 ads.indd 1
AgQuest Insurance Agency is an Equal Opportunity Provider.
705 E 4th Street, Winthrop, MN
2/5/2015 9:46:10 AM
It All Started Here
By Jay Walterman, Vice President of Farm Equipment & Construction
Your cooperative, with its origins in Lafayette, has continuously served
this community for the last century. It all started right here in 1915 with the organization of the Cooperative Creamery Association. From those humble beginnings came a continuous stream of service offerings: agronomy, grain, feed,
petroleum, and by the 1950s, farm equipment.
T
he current Ag Center model is designed to be
a one-stop experience. With one visit, a farmer
can book agronomy and petroleum, buy farm
and grain handling equipment, pick up parts and
tires, and have equipment repaired.
The model has grown and moved beyond this community in varying degrees to Gaylord, Hector, Norseland, and
Waconia. It appears to be headed to Hamburg, as well.
However, Lafayette is the focus of this article.
What started as a creamery has expanded to:
•Grain Handling Equipment—Bins, dryers, grain legs, air
systems, augers, and conveyors. We provide complete service, from computer-aided design (CAD) to trained service
technicians to construct your projects. Brands: GSI, Farm
Fans, Brock®, Sudenga, Westfield, and Sukup.
•Short Line Farm Equipment and Rental—New and used
skid steer loaders, spring and fall tillage implements, seed
tenders, grain carts, sprayers, and hay, forage, and manure
handling equipment. Brands: Bobcat®, Gehl, Wil-Rich,
Kuhn-Krause, Great Plains, Wishek, H&S, Demco, Meyer,
and Parker.
•A Full Parts Department—Including precision ag equipment for planting and guidance systems, Interstate
Batteries, pressure washers, and an extensive array of related farm support parts.
•A Full Service Shop and Tire Service—
Including two on-farm tire repair trucks,
DOT, farm equipment, and heavy truck and
small engine repair.
The cooperative began about a block from the present Lafayette Ag Center,
above.
•Lawn and Garden Equipment—Mowers, chainsaws, handheld power units, blowers, and tillers. Brands: Cub Cadet®,
Echo, Hustler, and Jonsered®.
In addition to the above, you can pay your bill, purchase
hardware, buy a Sioux gate, or a Pro-tec, Wick, or Sentinel
Building. You can get advice from experts in a variety of
farm-related fields, and many of our professionals have
30-40 years of service.
All you need plus patronage
Yup, this is where it all started, about a block from the
present Lafayette Ag Center. We have never forgotten who
owns our business. We have worked diligently and managed
your resources efficiently, with the goal of providing you very
competitive products and services, and then returning to you
the fruit of our joint venture in the form of patronage.
Thanks for your support. ●
The Lafayette Ag Center recently built this corn
drying, handling, and storage system for Fischer
Brothers Farms of Hanska, MN. (Photo courtesy of
Minnesota Farm Guide.)
14
www.ufcmn.com
Put Your PC or Cell Phone to Work
By Jason Tews, Vice President of Grain
In this electronic age, nobody has any more time in their day. If anything, our days are more crowded.
U
nited Farmers Cooperative has made it easier for
you to do your grain business with us. Now you
can do three basic things electronically: check
your account, deposit your grain checks, and sign
purchase contracts online. You don’t need to
come to UFC’s offices to do any of these things anymore.
Online account access
Access your account with UFC and see everything from the
fuel you’ve purchased to the grain you’ve sold. View the details
on each grain contract—what price you settled on, the number
of bushels, what’s been delivered against each contract, and the
grades that have been assigned to each delivery.
At the year’s end, you can print at home the assembly
sheets you’d normally come to the office and wait for. You
can also print reports that tie directly to your 1099 and print
reports needed for insurance. Do all this from your PC or
smartphone.
To sign up for online account access, go to www.ufcmn.
com and click on ACCOUNT ACCESS under the LOGIN drop
down menu. Then click on FIRST TIME SIGN ON, if you have
not previously created an account.
You’ll be led through the process of setting up your
account for online access. Then, sign in and start retrieving
information. NOTE: You will need your UFC customer number to set up your account.
Deposit via ACH
If you sell corn and want the check right away, we
can deposit it directly to your bank account as an ACH
(Automated Clearing House) transaction. Funds will be
deposited directly into your account within 1-2 business days,
no waiting for the check to arrive in the mail and then for the
check to clear the bank.
To do this, you must fill out a physical ACH Agreement
that we will send to your bank, so future checks go straight
into your account.
Call the main UFC Grain desk at Winthrop (507-647-6601) or
stop at any of our local elevators to pick up an ACH Agreement.
Electronic signature
Like ACH, you must fill out a physical authorization form
to confirm grain purchase contracts online. Once the form
is completed, you’ll receive an email and a link to the
eAgVantage log-in screen whenever you have a contact to
view and sign via electronic signature.
It all comes back to convenience. Why run back and forth
to the cooperative, to the bank, and to the post office when
you can deposit your grain checks automatically and access
your account or confirm your contracts online?
Get started saving time today. ●
15
Help Us Understand Your Needs
By Greg Peton, Executive Vice President of Sales
At United Farmers Cooperative, we’re making a significant change in
the way we relate to our customers. Rather than positioning products
and services we think you might buy, we’ll invest a sizeable portion
of 2015 identifying your needs and determining how UFC is best able to address
your needs.
•In some cases, it may mean developing our sales team in
one division to recognize a need that can be met by another
division of UFC and introducing you to the solution.
•In other cases, it may mean expanding into a new area of
business that will provide solutions for a need we currently
do not address.
UFC customer Tom Eckberg (left) is visited at his farm by Brett Amberg (center), UFC’s in-house Farm Rx specialist, and Bob Wilkinson (right), Norseland
area DSM, to discuss spring farm plans.
We want to be a company capable of offering solutions
and providing you with value that enhances your business and
your life. We want to be trusted advisors in whom you have full
confidence that we’re representing your best interests.
As stated earlier, the first step to changing our approach
is to identify your needs. We must gain a full understanding of your plans and the problems you face. Only then will
we be able to offer solutions that provide a more favorable
return on your investment.
In the coming weeks and months, a UFC sales representative will call to schedule an appointment to visit with you.
Rather than expecting you to come to our offices, we want
to meet at your preferred location. It might be on your farm,
in your office, shop, or home, or it may be at the Ag Center
counter or Farm Supply location where you are accustomed
to conducting business.
Wherever it is, we hope you are open to having a conversation with us. We guarantee you’ll benefit from that brief
chat. ●
UFC Master Agronomy Advisors, Jesse Wiant (left) and Ryan Ponwith (right),
utilize UFC’s new drone technology to help give growers a bird’s-eye view
of their acres. With the drone, they are able to help ID troubled areas and
find solutions, show side-by-side product comparisons, and scout crops more
efficiently.
17
Plant With One Eye on the Markets
By Nathan Nordstrom, Director of Grain Merchandising
Last year, you had the opportunity to market soybeans into June at very high
prices, and you had the chance to sell corn into May at prices more closely
resembling previous years, versus the prices we’re currently seeing. Every year
is different, but last season’s price pattern served up an important reminder you may miss some great opportunities if you ignore the new-crop market while
planting and carrying out other early growing season tasks.
K
eep your options open during planting, but start
building the basis for your marketing plan well
before heading for the field. I suggest a diversified approach, dividing your projected crop
into three segments: a certain amount of forward
sales, a certain amount that you will sell out of the bin, and a
certain amount that you will store at the local elevator.
Forward Sales – Sell for harvest or utilize on-farm storage
and sell the carry for later delivery. HTAs (futures-only) fall
into this category. UFC’s HTA is flexible to the best market
and can be rolled to the most profitable delivery period.
Consider using some simple low-cost, up-side protection if
you are planning on selling a higher percentage forward.
Sell Out of the Bin – Uncommitted grain in the bin is
great to have in a year when supply is tight. Bins also give
you the opportunity to participate in the next spring’s seasonal market opportunities.
Store at the Elevator – Elevator storage or delayed price
adds the most value when it is used as a supplement. Forward
harvest sales and on-farm storage capacity should only cover
a percentage of a conservative yield guess. Using storage to
cover the rest ensures you are only paying for what you use.
Instead of filling your bins at harvest and thinking, “Now
what?,” be thinking about the upcoming crop and how you
will manage it. Having a marketing plan and a forward-looking approach is important.
Then, plant with one eye on the markets. I realize you are
super busy putting in the crop, but keep the grain trade in your
mind. There are many years where you experience normal weather and good planting conditions. In these years, the best time to
sell your grain is when you are in the field, because the market
sees risk being reduced throughout the season and prices tend
to weaken based on the risk premium leaving the marketplace.
However, there will also be years when planting doesn’t
go so well. The early-season rains fail to arrive and drought
conditions start to take hold. In these years, you need to be
thinking about Plan B, and how what you have already done
will factor into the total equation.
So have a balanced approach, but don’t get over extended. Keep an eye on the markets and your grain merchandiser’s phone number handy.
In addition to being fluent in the grain marketing and
cash marketing alternatives, your UFC Grain originator also
has a good understanding
Introducing Nathan
of crop insurance and the
farm program, and how
Nordstrom
these risk management
tools impact your marketing
plan.
Call the main UFC Grain
desk at Winthrop at 507647-6601 anytime. ●
Our Director of Grain
Merchandising, Nathan
Nordstrom, supervises all the
grain originators of United
Farmers Cooperative. He
took on this position at the
beginning of 2015.
Nathan’s background
includes 12 years in local and
national grain merchandising. Most recently, he managed cash corn purchasing
and renewable fuel sales for
a large Midwestern ethanol
producer. ●
18
www.ufcmn.com
Spring Blossoms at Garden Center
By Kathy Watson, Waconia Garden Center Manager, UFC Farm Supply
S
pring is right around the corner, and there will
soon be plenty of things to do outside. Here’s
a short list of early-season tasks for homeowners and lifestyle farmers:
❏ Rake up the leaves and other debris on your
lawn
❏ Remove the burlap or wraps from your small
trees
❏ Cut down perennials you allowed to stand as a
winter feature
❏ Fertilize perennials and shrubs
❏ Pull emerging weeds
❏ Apply pre-emergent weed preventer to your
grass and turf
❏ Mulch your ground if it is not super wet
Early spring is also an ideal time to plant cool season
crops like potatoes, onions, lettuce, and brussels sprouts.
Spring bulbs can also be planted, and it’s a good time to
start dividing some perennials—depending on the kind.
Our staff has years of horticultural and gardening experience, and we are happy to answer any questions you
may have. Come and explore our Garden Center, which
will be full of perennials, trees, shrubs, annuals, and vegetables. This year, we are bringing in a larger variety of
edibles such as raspberries, blueberries, and rhubarb.
We carry a multitude of planting containers, from
plastic and wood, to the versatile ceramic ironstone, a
pot that can be used in all seasons. UFC Farm Supply is
a great source of grass and garden seed, turf fertilizers,
and plant fertilizers. Our rental department has tillers
to get your garden ready and various types of aerators
to improve the health of your lawn. Finally, we have
what you need to complete those do-it-yourself projects you’ve been reading about all winter on Pinterest,
such as making a potting bench or a plant container out
of pallets. UFC Farm Supply can provide you with the
raw materials to complete many of these projects. The
Waconia Garden Center is scheduled to open March 23.
Check www.ufcfarmsupply.com for product information
and upcoming events. ●
19
More LP Storage Benefits
Farmer and Co-op
By Doug Lund, Energy Operations Manager
UFC Energy introduced a large LP storage tank
program last year with the goal of increasing
LP storage within our trade area. With pipeline reversals and a chronic shortage of trucks
during the crop drying season, it made sense to store
more LP during the off-season.
W
e partnered with CHS Inc. to offer our customers a 10-year financing
package on 12,000-, 18,000-, and 30,000-gallon tanks. Many of these
customers use LP both to dry their crops and to heat their livestock
facilities. By partnering with CHS, the farmer didn’t have to pay up
front for the tank, and UFC didn’t take a hit on its balance sheet. Of
course, CHS was delighted to have our customers’ commitment to purchase LP gas over
the next 10 years.
Last summer, we installed 18 of these large tanks. We sat down with each farmer and
analyzed how many gallons
of LP they use, to determine
the right-sized tank.
As a result of the additional storage, UFC Energy
was able to eliminate a
large number of deliveries
at harvest and route its
trucks more efficiently to all
of our customers.
Smaller tanks available, too
You needn’t be a
large-volume LP user to
benefit from adding or
upgrading your storage.
Last year, UFC Energy set
120 tanks ranging from 500
to 1,000 gallons. With more
storage, you don’t see the
truck in the yard as often,
and you have greater assurance of having the gas you
need, when you need it.
Adjacent to this story are
the comments of two UFC
energy customers who participated in the large tank
storage program this year.
If you would like to
explore upsizing your LP
storage next summer, call
the UFC Energy Team at
507-647-6602. ●
20
www.ufcmn.com
Bruce Platz with grain dryer and 18,000-gallon LP storage tank in the distance.
Jason Enter with 30,000-gallon LP storage tank and grain drying facility in
the background.
Bruce and
Laurie Platz
Lafayette corn grower Bruce
Platz asked UFC Energy to install
an 18,000-gallon LP storage tank
last summer. “Fall is a very poor
time to run out,” says Bruce, who
previously relied on LP gas deliveries every other day during the
drying season.
Bruce, who also raises hogs
wean to finish, took advantage of
UFC’s large LP storage tank program. He consolidated six tanks
totaling 5,000 gallons into one
18,000-gallon tank. UFC hooked
his dryer, four hog buildings, a
small barn, his house, and his shop
to the new tank.
“The biggest benefit is having
a year’s worth of LP,” he states.
“We need a consistent supply.”
Another benefit, says Bruce, is the
savings of ordering LP in transport
loads.
“A side benefit is that I’m not
running around to all these tanks
in the wintertime to figure out
whether I’m going to make it to
the next delivery,” he adds.
Jason Enter and
Perry Meyer
Meyer-Enter Farms, New Ulm,
installed a bigger corn dryer three
years ago. With four 1,000-gallon
tanks dedicated to the dryer, a
UFC Energy delivery truck had to
be on their farm at the same time
every day to prevent them from
running out.
Now that UFC Energy has
installed a 30,000-gallon tank on
the farm, four transport loads of LP
will keep the dryer supplied in the
fall, and another transport of LP will
heat the farm’s three hog barns.
“We don’t have to worry about
the trucks showing up exactly on
time or running out of gas, and
we don’t have to worry about the
hog operation running out of gas,
either.” says Jason, who praises
the cooperative’s thoroughness.
“Without UFC putting together
the total package—concrete, piping, cranes, installation of the tank,
financing, and everything—I don’t
know that we would have a tank
right now,” he states. ●
Poultry Is Big Business
RAISING CHICKS IS ALL THE RAGE
By Sue Kelly, Consumer Feeds Business Manager
The backyard poultry industry is growing by leaps
and bounds. More and more people are raising
their own poultry, whether for eggs or for meat.
Many municipalities have now passed regulations
allowing residents to have chickens in their backyards.
A
t UFC Farm, we begin
taking orders for baby
chicks from mid-February
through June. With every
order, our customers
receive a free copy of “The Backyard
Poultry Book,” which explains in common language how to raise chickens,
ducks, geese, turkey, and game birds.
In late March and early April, we
will be hosting “Tour D’Cluck” poultry
seminars presented by Twain Lockhart,
Nutrena Poultry Specialist. These
seminars are held at our Waconia,
Maple Plain, and LeSueur locations
and instruct poultry enthusiasts on the
care and management of their flocks.
Please visit our website at www.ufcfarmsupply.com for dates and times.
Are you interested in only getting a few birds? We host our “Pick
a Chick” days on April 6, April 20,
and May 4 at our Maple Plain and
Waconia locations. We feature a
variety of breeds on different days,
approximately 200 at a time. This
allows you to pick the quantity of the
breeds you would like to take home.
Visit www.ufcfarmsupply.com to see
which breeds will be available in-store
on any particular day.
Besides being the source of your
chicks and information, UFC Farm
Supply carries many brands of poultry
feed, including Purina®, Nutrena™,
and our own brand, Prairie Hill Farms.
In addition, we stock all the accessories you’ll need to raise poultry such
as feeders, waterers, heat lamps,
bedding, and poultry treats. Yes,
poultry treats, such as meal worms,
which have become very popular! For
beginners, we sell a chick starter kit
that includes a feeder, waterer, and a
brooder pen to keep your animals in.
Thinking about raising poultry?
Stop at UFC Farm Supply, and we’ll
give you the scoop.
Editor’s Note: Chick orders and poultry raising supplies are available at these
UFC Farm Supply locations: Waconia,
Maple Plain, LeSueur, and Cologne.
*UFC’s Klossner location also sells
chicks, poultry supplies, and poultry
feed. ●
21
In Whirlwinds of Change,
Some Things Remain
By Jeff Franta, Board Chairman
C
onsidering all of the changes our
members have witnessed in the
last century, I can assure you some
things have not changed. The
principles that guided this organization from the very beginning continue to guide
the UFC board of directors at every meeting.
As the theme for our annual meeting pointed
out, we are INTENTIONAL about sticking to our
plan and purpose. We are also HISTORICALLY
GROUNDED, being well aware of the value of the increased
competitiveness created by those who willingly pooled their
resources in 1915 for the benefit of all. The value of this
principle has been proven many times over throughout our
history. Finally, we strive to remain FUTURE FOCUSED,
directing UFC to where it must be in the years ahead to
remain strong and viable.
At the annual meeting, your board of directors downsized
from 11 to 10 members. As agreed during the Waconia Farm
Supply merger, UFC director Jim Abraham has stepped
down from the board after one year of service. Thanks,
Jim, for 10 years of combined, dedicated service on both
boards! Jim Oelfke, who also joined the board as a result of
the merger, will stand for re-election next year. Also at this
year’s annual meeting, members elected three incumbents
to three-year terms:
1. Todd Nelson, representing the south central trade area,
2. Todd Kettner, representing the north central trade area,
3. Kevin Lauwagie, a director-at-large from the Winthrop area.
A financial look back
I’m always pleased to mention the track record of profitability UFC has enjoyed throughout its history. Our 99th year
of business has been historic indeed. We experienced some
big changes, rapid growth, and a record year of profitability
in 2014.
22
www.ufcmn.com
As a result of the cooperative’s strong financial position
and healthy reserves, your board of directors allocated most
of 2014’s profits to the members. Again using a combination
of qualified and nonqualified allocations, the amount distributed to the members was about double the previous year’s
figure.
At present, your board does not plan to reduce the equity retirement age from 69 years, but we may begin to retire
past years’ equities.
Collaborating locally
At UFC, we believe our track record of success is due in
large part to our ability to adapt to constant change. From
the board and management team, to the individual employees—everyone seems to make the adjustments necessary to
grow and increase in profitability.
We’ve also worked hard to maintain good relationships
with our cooperative neighbors and to work together on any
project of mutual benefit. Here are some of the ways we’ve
collaborated in recent years:
•Prior to our Brownton rail loading facility, we successfully
worked with a local cooperative to get grain on rail.
•In the years preceding our merger with Waconia Farm
Supply, they had been leasing space in our fertilizer plant.
Our annual meeting, held on Jan. 12, 2015, at the Berdan Event Center, marked
the beginning of our 100th year as a cooperative business. United Farmers
Cooperative started as the Cooperative Creamery Association in Lafayette in
1915.
•We still view the short partnership we had with ADM in
the forming of United Grain
Systems as a valuable partnership that gave us firsthand
experience in grain and freight
trading.
•On a regional level, CHS Inc.
has been leasing space in our
fertilizer facility since it was
built.
•The WinField chemical distribution facility next to our
home office in Winthrop is a
successful partnership with
Land O’Lakes.
•We also have a great working
relationship with CoBank, our
primary lender.
•Our latest working relationship
is a project with CHS—the
development of a fertilizer distribution center at Brownton
targeted for operation in the
fall of 2017. See “Building for
Future Needs” on page 6.
We never know what opportunities lay ahead. We just try our
best to be ready. In all we do,
UFC is committed to keeping this
cooperative and our cooperative
neighbors in this region under
local ownership and control.
In closing, I’d like to thank all
of you for your loyalty and support. Your patronage and active
participation is what is necessary
to keep UFC strong and viable.
Have a safe and enjoyable spring
season! ●
23
The right nutrients.
The right formulations.
The right timing.
No one knows plant nutrition like WinField.
WinField has best-in-class plant nutrient products and technology,
agronomic experience, and the long-term vision to help you achieve the
greatest profit potential on your genetic investment. Rely on our experts
for 360° nutrient management and the right year-round program for your
fields. To learn more, talk with your retailer or visit winfield.com
WinField is a trademark of Winfield Solutions, LLC. © 2012 Winfield Solutions, LLC
Capturing data’s potential…
UFC is proud to introduce United Insight, a new
precision ag program designed to help growers
get the full potential out of their agronomic data.
Package features include:
• Grid sampling
• Variable rate recommendations for fertilizer,
seeding, and nutrients
• In-season satellite imagery
• Tissue sampling and stalk nitrate testing
• Customizable yield and product reports
Contact your UFC agronomist for more information • UFC Winthrop 507-647-6600
THE R7® TOOL. AN ENTIRELY FRESH LOOK
AT YOUR FIELDS. The R7® Tool by WinField
generates field performance information
about every acre and matches crop inputs
and decisions to each field’s – and zone’s –
potential. By combining satellite imagery
with local seed and crop protection data from
the Answer Plot® Program, you’ll learn which
products and practices will produce the best
yield potential.
SEE YOUR FIELDS
FROM SATELLITE,
GROUND AND OTHER
PROFITABLE ANGLES.
Contact us for more information or to
schedule an appointment.
Answer Plot, CROPLAN, NutriSolutions, R7 and WinField
are registered trademarks of Winfield Solutions, LLC.
© 2013 Winfield Solutions, LLC
Fieldmaster Boosts Locomotive Power
By Darv Turbes, Vice President of Energy
Last year, United Farmers Cooperative and our energy supplier, CHS
Inc., with the cooperation of the Twin Cities & Western Railroad, completed a
fuel efficiency trial comparing premium diesel with No. 2 diesel.
T
wo identical locomotives powered either end of
a train running on a dedicated route from Central
Minnesota to St. Paul and back. One of the
2,300-horsepower locomotives burned Cenex®
Ruby Fieldmaster® Premium Diesel, and the other
burned straight No. 2. The locomotives ran 24 hours a day,
and the trial spanned 19 weeks, from late 2013 into early
2014.
“Locomotive fuel is our second-largest operating expense,
so we are always looking for creative ways to manage this
expense and find solutions that will result in efficiencies,”
said Victor Meyers, TC&W’s vice president of operations.
TC&W agreed to the trial after learning that Fieldmaster
had improved the fuel efficiency of many diesel engines by
5% and increased horsepower by 4.5%, as well as helping to
extend the life of major engine components.
During the trial, the locomotive that ran the Fieldmaster
Premium Diesel consumed 10.8% less fuel.
Additionally, Fieldmaster improved the horsepower of
that locomotive. Tony Emerson, CHS senior business development manager, recalls talking with a TC&W engineer midway through the trial.
“It feels like the train running premium fuel is being held
back by the other one,” said an engineer. That observation
proved to be true. The pre-trial horsepower rating on the
locomotive running Fieldmaster was 2,217, while the post-trial horsepower was 2,370—an increase of 6.5%.
26
www.ufcmn.com
“We also observed that our fuel filters, which were
changed during scheduled maintenance, were much cleaner
in the locomotive running premium diesel than in the locomotive running the traditional No. 2,” said Victor.
After witnessing these dramatic results, the TC&W
Railroad made the decision to purchase Fieldmaster Premium
Diesel and run the fuel in the entire locomotive fleet. The railroad runs 100% Fieldmaster in their power units to this day.
“We have continued to experience very good results
throughout our entire fleet of locomotives,” remarked Victor.
To our ag customers
While the above trial is unusual in terms of the size and
the application of the diesel engines studied, the engines on
your farm can achieve similar efficiencies. Moreover, meeting
the specs of the new T-4 diesel engines requires a high “D”
grade diesel fuel with an additive package like Cenex Ruby
Fieldmaster Premium Diesel.
“The injector stabilizer in Fieldmaster makes sure the
fuel doesn’t break down under the high pressure of these
engines,” says Scott Rohlik, CHS district manager. “The
stabilizer keeps the injectors clean so they spray a fine mist
across the cylinder wall and burn the fuel fully—that’s where
the economy comes in.”
If you have yet to apply the efficiencies of premium diesel
to your bottom line, contact your local UFC Energy Office
today and conduct your own trial. For more testimonials, visit
www.cenex.com/fuels/cenex-ruby-fieldmaster. ●
27
PRSRT STD
U.S. POSTAGE
PAID
VISTACOMM
705 East 4th Street
PO Box 461
Winthrop, MN 55396
www.ufcmn.com
Loyall® Premium Pet Foods are specially formulated for
your pet’s individual needs. Your pet’s nutritional needs
are influenced by a variety of factors, such as age, activity
level and sensitivities. That’s why our line of premium pet
foods includes several dog formulas and one cat formula.
Loyall® Pet Food available at UFC Farm Supply:
Manufacturer’s Coupon
Expires: 12/31/2015
Consumer: Limit one coupon per customer per visit. Not valid with any other
offers. Valid at any participating retailer. Not redeemable for cash. Void if transferred
or copied and where taxed, restricted or prohibited by law.
Retailer: We will reimburse you the face value of this coupon plus handling,
provided it is redeemed in accordance with Cargill Incorporated’s coupon redemption
policy, available on request. Reproduction of this coupon is expressly prohibited.
(Any other use constitutes fraud.) Invoices proving purchase of sufficient stock within
the past 180 days to cover coupons presented for redemption must be shown upon
request. Cash value .001¢. Mail to: CMS Dep’t 22304, Cargill Animal Nutrition, 1
Fawcett Drive, Del Rio, TX 78840.
ONE COUPON PER CUSTOMER.
LoyallPetFood.com
© 2015 Cargill, Incorporated. All Rights Reserved.
© 2015 Cargill Incorporated. All Rights Reserved.