ADVISOR
October 2015 Volume 11 • Issue 2
The Ag
ADVISOR
Afton Main Office 641-347-8428 800-342-1556
Creating the Future of Your Cooperative By Jim Schendt, general manager
Macksburg 641-768-2436
The best way to predict the future is to create it. That’s why your board of directors is working with the board at United Farmers Mercantile Cooperative (UFMC) in Red Oak on a comprehensive study to determine how we can best meet the needs of our farmer members and remain relevant to you, both now and in the future. We are seeking new opportunities from a position of strength, not weakness. This study will answer a lot of questions for us. The directors will not have the authority to commit either cooperative to any course of action. Their job is to provide input, ask questions, review all studies and reports, make recommendations, and represent the interests of each cooperative’s membership.
Mount Ayr 641-464-3821
Our general goal is for both cooperatives to gain as a result of this process. Each
Arispe 641-346-2224 Creston 641-782-7202 800-845-7202 Diagonal 641-734-5303 Elwood, KS 913-365-8041 Indianola 515-961-6300
Osceola 641-342-2139 Shenandoah 712-246-2253
company has its own core assets that are valuable to the other organization. We want to see if we can leverage these assets to attract and retain talent, increase our buying power, remain competitive, and bring more value to our producers. We’ll stay in touch with you regularly about the progress of this study. We encourage you to bring any questions and comments to your Farmers Cooperative Company board members, or to me. We value the information that will come from this study and hope it will make us a better company for today’s producers—and for the next generation of farmers. u
Ready or Not, Here Comes the 2016 Crop Season By Dave Shields, agronomy manager
Asking the right questions is as important as giving the right answers. It’s time to start planning for the 2016 crop by considering six key questions: 1. Do I need soil analysis tests? Now’s the time to get these scheduled so you’ll have one less thing to worry about at harvest. 2. Do I need nutrient applications? You don’t have to guess, since your soil tests will reveal the answers. 3. Am I doing the right things to take advantage of the 4R nutrient strategy? The 4Rs of nutrient stewardship are: the right source, at the right rate, at the right time, in the right place. With today’s variable-rate technology, we should always be putting the right rates in the right place for maximum crop production efficiency. 4. Do we need tillage or cover crops in place? Consider which options might be right for your acres. 5. What classes of chemistry with multiple modes of action should be in place in 2016? This becomes increasingly important as herbicide resistance becomes more of a challenge.
6. Are we ready to evaluate our report cards as they come out on yield maps from combines? Take the time to learn from 2015 as you plan for 2016. When you think through these questions, you’ll be better prepared to raise the next crop and get things done in a timely manner.
How much is a day worth? Getting things done on time became a major issue in our trade territory this year. Mother Nature challenged us to the point of rethinking our next move when the original plan didn’t work out. Remember how the value of one good work day was priceless? In some cases, it determined whether the crop got planted on time, on July 4, or not at all. The value of some of these single work days was so astronomical that their worth was almost impossible to calculate. Going forward, don’t allow the struggles of 2015 to affect your decisions for your 2016 crop. We can help you get things in place for next year while you’re preparing for harvest this fall. Let’s apply the proper nutrients this fall and add stabilizers to keep them in place. This can help save invaluable work days next spring for the jobs that need to be done then. Make time now to work with your Farmers Cooperative Company agronomist and set yourself up for success in 2016. We look forward to working with you. u
It’s Time to Rethink Nutrient Management All eyes are on agriculture when it comes to nutrient stewardship and water quality. Each one of us needs to pay attention to this and make every effort to voluntarily do the right thing—otherwise, a regulatory agency will make these decisions for us. We do our best to follow the guidelines of the Certified Crop
2
Advisor (CCA) program and provide the right recommendations for each acre. We want to work with you on nutrient application, resistance management strategies, and the proper use of crop protection products to get the best performance. We’re ready, so let’s get started on the 2016 crop today. We look forward to working with you. u
©2015 Farmers Cooperative Company. All Rights Reserved. Published in partnership with VistaComm® (www.VistaComm.com).
Fuel Up at Your Mount Ayr Fuel Station Business has been steady at the new renewable fuels blending station at our Mount Ayr location. Our blender pumps opened for business on July 1 at the new fuel site north of our Mount Ayr Country Store. Offering fuel for virtually any type of vehicle or piece of equipment, this site features both an ethanol and biodieselblending dispenser.
the cooler weather on blends higher than #2 B5. Cloud point on B99 biodiesel is around 35 degrees Fahrenheit.
Ethanol blends include 87-octane E10 for use in all vehicles, registered E15 for use in all 2001 and newer vehicles (Sept. 16 through May 31 each year) and flex-fuel vehicles (only June 1 through Sept. 15), and E30 and E85 for use in flexfuel vehicles only. E30 has proven to have the “sweet spot” of mileage efficiency for the price difference compared to E10.
Also available on both large and small nozzles, #2 premium B5 dyed diesel offers a non-taxed option for customers wishing to fill off-road equipment. The clear and dyed diesels sold are premium Cenex® products: Roadmaster XL® and Ruby Fieldmaster®. More information on these products can be found by calling Darin Schlapia at 641-202-1403.
The biodiesel blending dispenser uses base blends of #2 premium B5 Diesel and B99 biodiesel to make B11, B20, and B30 biodiesel blends. While all diesel engines can use any blend of biodiesel, it is recommended you check with your original equipment manufacturer for warranty restrictions on biodiesel blends above #2 B5.
Like our other fueling locations, Mount Ayr is pay at the pump only, accepting all major credit cards—Visa®, MasterCard®, Discover®, American Express®, Fleet One Local, Wright Express®, and Voyager. The dollar limit per card swipe on credit cards varies anywhere from $99 to $450 depending on the card. Also accepted is our Farmers Cooperative local card, which is tied to your cooperative account. It has a per swipe limit of $500, with higher limits available upon request. Applications for local cooperative cards can be obtained at our Mount Ayr, Afton, or Creston locations.
Available on both large and small nozzles, the #2 B5 blend has the same characteristics as regular #2 diesel and is known to replace valuable lubrication lost in the ultra-low sulfur #2 diesels on the market today. The B11 blend has proven to be the most economical choice for engine lubrication and mileage efficiency. An important note to those using higher blends of biodiesel, run your tank low in late October and fill up with a fresh tank of #2 B5. This will alleviate any gelling problems in
During the winter months, the biodiesel blending dispenser will be converted to a #2 and #1 blending dispenser to give customers a choice of winter blends, and the ability to purchase straight #1 diesel. Stay tuned for more details later this fall.
Farmers Cooperative is excited to be offering these great American-made ethanol and biodiesel products. We’re proud to add value to the commodities our members and customers raise. Thank you for your business. u
3
See What’s New at the Creston Office Show Room Want to take a sneak peek of how work is progressing at the new office and show room in Creston? Crews are hard at work to finish the new, energy-efficient 60-foot by 75-foot office. This facility will include a show room where we can feature animal health products, show supplies, feed displays, fencing supplies, and pet food. We’ll also have a second story with meeting room space. The new building is connected to the warehouse, which was constructed in 2009. The loading dock of the new facility is located on the north side of the building. Our two geothermal heat and cool units, along with their 10 vertical wells, were installed and became operational the first week of July. Highly efficient LED lighting has been installed throughout the new building. On the inside, drywall and painting has been completed. Wood trim was completed the last week of August, and wood staining is slated for the first two weeks of September. Then, cabinets and counters will be installed along with the finishing touches on ceilings, lights, and wiring. We hope to be moved in by Oct. 1. The new office will improve the experience for the most important people at our cooperative, our customers. Thanks for your business. u
Creating the Future By Larry Weis, board president
The best way to predict the future is to create it. That’s why the boards of directors for Farmers Cooperative of Afton and United Farmers Mercantile Cooperative (UFMC) have started a comprehensive study to determine how we can best meet the needs of our farmer members now, and in the future. The study will answer a lot of questions for us. The directors will not have the authority to commit either cooperative to any course of action. Our job is to provide input, ask questions, review all studies and reports, make recommendations, and represent the interests of each cooperative’s membership.
Our general goal is that both cooperatives gain as a result of this process. Each company has its own core assets that are valuable to the other organization. We want to see if we can leverage these assets to attract and retain talent, increase our buying power, remain competitive, and bring more value to our producers. Farmers Cooperative will communicate regularly with you about the progress of this study. We encourage you to bring any questions and comments regarding this study to any of our board members or Jim Schendt, general manager. We value the information that will come from this study and hope it will make us a better company for today’s producers and the next generation of farmers. u
4
Mount Ayr Fertilizer Plant Offers Three Big Benefits By Dave Shields, agronomy manager
The new 5,200-ton dry nutrient plant in Mount Ayr is coming along well, even though Mother Nature created a lot of challenging conditions this year. This progress is good news as you prepare for fall and plan ahead to the 2016 crop. The plant’s main building and equipment are all in place. Now crews are working on the electrical systems and are adding finishing touches so the plant will be ready for use yet this fall. This plant will provide three big benefits: 1. Greater efficiency. This plant will allow us to obtain efficiencies in product placement before the peak season. Through better labor management and improved time management for fertilizer mixing and loading, we can provide more product offerings across our trade territory. 2. Higher nutrient performance. The Mount Ayr plant will be capable of treating inbound and outbound crop inputs with value-added products that fit with the 4R
5
Nutrient Strategy of sustainable crop production. This will also maximize the performance of crop nutrients. 3. More buying power. The new plant will allow us to handle larger volumes, which should give us better buying opportunities and create a better cost position for you. As we saw in early August, crop nutrient manufacturers and distributors continue to consolidate. The ability for us to partner with these suppliers and better predict crop nutrient needs and placement will translate into more cost-effective crop inputs for you. These suppliers are much more willing to provide the best pricing when there’s a forecast in place, rather than trying to provide products on the spot. If you’re in the Mount Ayr area, check out the new fertilizer plant, and give us the opportunity to offer you a better cost per bushel of production. u
196 E. Railroad | PO Box 19 Afton, IA 50830
www.farmerscoopco.com
Find Fuel Options at J20 Station By Darin Schlapia, Creston location manager
Headed to the Sun Valley Lake area? Farmers Cooperative Company is already there, since we acquired a fuel station east of Ellston on County Highway J20 on August 3. This unmanned station is a good fit with our operation because: • We have many current customers in the area, as well as a new group of customers who live and work in the Ellston/ Sun Valley Lake area. All can benefit from this convenient, modern fueling location. • The site, built in 2007 by J20 Fuel, LLC, includes a fourproduct, eight-hose dispenser offering 87 octane E10 gasoline, premium 91 gasoline, clear Cenex® Roadmaster Diesel, and dyed Cenex Ruby Fieldmaster® diesel, all underneath a 24-foot by 24-foot canopy. • The J20 fuel station accepts all major credit cards, along with our local cards tied directly to your Farmers Cooperative Company charge account.
• The fuel station is located within our trade territory, almost equal distances to our Afton, Mount Ayr, and Osceola locations. We’re excited to offer high-quality Cenex premium gasoline and diesel products to the Ellston/Sun Valley Lake area. Stop by the J20 station next time you’re in the area. If you have any questions about this new fueling station, call me at 641-202-1403. u
FARMERS COOPERATIVE COMPANY GRAIN POLICY EFFECTIVE SEPT. 1, 2015 DISPOSITION OF GRAIN: Driver will provide accurate information to the scale operator as to the owner’s name or names and the instructions for the grain (sell, store, price later, grain bank, etc.). Grain without instructions will be stored. Please notify the scale operator of the last load. Each load of grain will be settled within 10 days of delivery. CONTRACTED GRAIN: Grain delivered against a sale contract will be applied to the oldest contract first. No early delivery of contracted grain is allowed without prior approval. If delivered early, payment will not be made any earlier than if delivered as contracted. DEFERRED PAYMENT: Grain may be placed on deferred payment prior to settlement time. Once grain is placed on deferred payment it cannot be changed. DIRECT SHIPMENT: All grain delivered to an area processor or terminal under the account of Farmers Cooperative Company will be settled on a load-by-load basis and discounted using the respective destination’s discount schedule. TREATED GRAIN: Any and all treated grains will be rejected. No exceptions. UNTARPING: All trucks must be untarped before pulling on scales. NO AVERAGING: Grain will be settled on a load-by-load basis. PLUGGED LOADS: Loads with obvious grade differences observed at unloading in varying parts of the load will be subject to re-inspection and possible rejection. HOURS: Dumping hours will be extended during the harvest season to accommodate your harvest needs. Hours will be posted at each location and are subject to change due to weather, space, etc. STORAGE RATES: Grain placed in storage will have a minimum of 15 cents for the first 100 days. Storage will then be calculated at a rate of $0.0015 per bushel per day. GRAIN THAT DOES NOT MEET #2 GRADES WILL NOT BE ALLOWED TO BE PLACED INTO STORAGE. Storage will be charged at month-end from January through August. GRAIN BANK STORAGE: Storage will be calculated at $0.0009 per bushel per day. There will be no charge for the first 60 days. PRICE-LATER CHARGES: Grain placed on a price-later contract will have a minimum charge of 6 cents for the first 30 days and thereafter will be accessed a service charge of $0.0015 per bushel per day until sold. All grain placed on price-later contract at harvest must be sold by August 26, 2016. ALL CONTRACTS AND SELLING OF GRAIN WILL ONLY BE DONE WHEN THE BOARD OF TRADE IS IN SESSION.
GRAIN POLICY SUBJECT TO CHANGE AS MARKET DICTATES • EFFECTIVE SEPT. 1, 2015
SOYBEANS TEST WEIGHT
CHARGE PER BU
MOISTURE DISCOUNT
SHRINK PER BU
SPLITS DISCOUNTS PER BU
DAMAGE HEAT DISCOUNT PER BU PER BU
54 lbs or more
13.1% to 13.5%
1.50%
20% or less
.3 to .5%
2¢
53.9 to 53
1/2¢
13.6% to 14.0%
3.00%
20.1 to 25
1/4¢
.6 to 1.0%
4¢
52.9 to 52.0
1¢
14.1% to 14.5%
4.50%
25.1 to 30
1/2¢
1.1 to 1.5%
6¢
51.9 to 51.0
1 1/2¢
14.6% to 15.0%
6.00%
30.1 to 35
3/4¢
1.6 to 2.0%
8¢
50.9 to 50.0
2¢
15.1% to 15.5%
7.50%
35.1 to 40
1¢
2.1 to 2.5%
3¢
10¢
2 1/2¢
2.6 to 3.0%
4¢
12¢
Under 49 lbs subject to rejections or discount on merit. Over 15.5% will not be stored, subject to rejection. Over 40% subject to rejection or discount on merit. NOTE: Over 8% damage or 5% heat damage subject to rejection.
3.1 to 3.5%
5¢
14¢
3.6 to 4.0%
6¢
16¢
4.1 to 4.5%
7¢
18¢
4.6 to 5.0%
8¢
20¢
49.9 to 49.0
FOREIGN MATERIAL:
All foreign material over 1% expressed to nearest tenth of a percent will be deducted from the
gross weight. Soybeans with excessive pods and stems will be subject to rejection.
HEAT DAMAGE:
Heat damage will be discounted as heat damage and total damage.
GREEN BEAN DAMAGE: Subject to special discounts or refusal. OTHER DISCOUNTS:
10¢ per bushel for sour, musty, heating COFO notations, sticks, stones, dirt.
CORN TEST WEIGHT
CHARGE PER BU
53.9 to 53.0
2¢
52.9 TO 52.0
4¢
51.9 TO 51.0
6¢ FOREIGN MATERIAL: Corn with excessive cob will be 8¢ subject to rejection.
50.9 TO 50.0 49.9 TO 49.0
MOISTURE SHRINK DRYING 1.45%/point
4¢/point
FOREIGN MATERIAL DAMAGE DISCOUNT DISCOUNT PER BU
HEAT
3.1 TO 4.9%
2¢/point
.3 to .5%
2¢
5.0 & up
3¢/point
.6 to 1.0%
3¢
1.1 to 1.5%
6¢
1.6 to 2.0%
9¢
2.1 to 2.5%
12¢
48.9 TO 48.0
15¢ OTHER DISCOUNTS: 10¢ per bushel for sour, musty, 18¢ weevils, heating, and COFO.
2.6 to 3.0%
15¢
47.9 TO 47.0
21¢
3.1 to 3.5%
18¢
3.6 to 4.0%
21¢
TEST WEIGHT CHARGE MOISTURE FOREIGN MATERIAL PER BU DISCOUNT PER BU 37.9 to 36.0 2¢/# 13.1 to 14% 3¢ 3.1% & up 2¢/point 35.9 to 32.0 3¢/# 14.1 to 15% 6¢ 31.9 & below 4¢/# 15.1% & up rejected
4.1 to 4.5%
24¢
4.6 to 5.0%
27¢
OATS
5.1 to 10%
2¢/PT
10.1 to 20%
3¢/PT
20.1 & up
4¢/PT
FOREIGN MATERIAL: Other grain is considered foreign material. OTHER DISCOUNTS: 10¢ per bushel for musty, heating, and weevils. MOISTURE LIMITS Sell Price Later Warehouse Grain Bank
CORN BEANS OATS 15.0 13.0 13.0 15.0 13.0 14.0 13.0 13.0 14.0 13.0
The Ag
ADVISOR
Afton Main Office 641-347-8428 800-342-1556
Creating the Future of Your Cooperative By Jim Schendt, general manager
Macksburg 641-768-2436
The best way to predict the future is to create it. That’s why your board of directors is working with the board at United Farmers Mercantile Cooperative (UFMC) in Red Oak on a comprehensive study to determine how we can best meet the needs of our farmer members and remain relevant to you, both now and in the future. We are seeking new opportunities from a position of strength, not weakness. This study will answer a lot of questions for us. The directors will not have the authority to commit either cooperative to any course of action. Their job is to provide input, ask questions, review all studies and reports, make recommendations, and represent the interests of each cooperative’s membership.
Mount Ayr 641-464-3821
Our general goal is for both cooperatives to gain as a result of this process. Each
Arispe 641-346-2224 Creston 641-782-7202 800-845-7202 Diagonal 641-734-5303 Elwood, KS 913-365-8041 Indianola 515-961-6300
Osceola 641-342-2139 Shenandoah 712-246-2253
company has its own core assets that are valuable to the other organization. We want to see if we can leverage these assets to attract and retain talent, increase our buying power, remain competitive, and bring more value to our producers. We’ll stay in touch with you regularly about the progress of this study. We encourage you to bring any questions and comments to your Farmers Cooperative Company board members, or to me. We value the information that will come from this study and hope it will make us a better company for today’s producers—and for the next generation of farmers. u
Ready or Not, Here Comes the 2016 Crop Season By Dave Shields, agronomy manager
Asking the right questions is as important as giving the right answers. It’s time to start planning for the 2016 crop by considering six key questions: 1. Do I need soil analysis tests? Now’s the time to get these scheduled so you’ll have one less thing to worry about at harvest. 2. Do I need nutrient applications? You don’t have to guess, since your soil tests will reveal the answers. 3. Am I doing the right things to take advantage of the 4R nutrient strategy? The 4Rs of nutrient stewardship are: the right source, at the right rate, at the right time, in the right place. With today’s variable-rate technology, we should always be putting the right rates in the right place for maximum crop production efficiency. 4. Do we need tillage or cover crops in place? Consider which options might be right for your acres. 5. What classes of chemistry with multiple modes of action should be in place in 2016? This becomes increasingly important as herbicide resistance becomes more of a challenge.
6. Are we ready to evaluate our report cards as they come out on yield maps from combines? Take the time to learn from 2015 as you plan for 2016. When you think through these questions, you’ll be better prepared to raise the next crop and get things done in a timely manner.
How much is a day worth? Getting things done on time became a major issue in our trade territory this year. Mother Nature challenged us to the point of rethinking our next move when the original plan didn’t work out. Remember how the value of one good work day was priceless? In some cases, it determined whether the crop got planted on time, on July 4, or not at all. The value of some of these single work days was so astronomical that their worth was almost impossible to calculate. Going forward, don’t allow the struggles of 2015 to affect your decisions for your 2016 crop. We can help you get things in place for next year while you’re preparing for harvest this fall. Let’s apply the proper nutrients this fall and add stabilizers to keep them in place. This can help save invaluable work days next spring for the jobs that need to be done then. Make time now to work with your Farmers Cooperative Company agronomist and set yourself up for success in 2016. We look forward to working with you. u
It’s Time to Rethink Nutrient Management All eyes are on agriculture when it comes to nutrient stewardship and water quality. Each one of us needs to pay attention to this and make every effort to voluntarily do the right thing—otherwise, a regulatory agency will make these decisions for us. We do our best to follow the guidelines of the Certified Crop
2
Advisor (CCA) program and provide the right recommendations for each acre. We want to work with you on nutrient application, resistance management strategies, and the proper use of crop protection products to get the best performance. We’re ready, so let’s get started on the 2016 crop today. We look forward to working with you. u
©2015 Farmers Cooperative Company. All Rights Reserved. Published in partnership with VistaComm® (www.VistaComm.com).
Fuel Up at Your Mount Ayr Fuel Station Business has been steady at the new renewable fuels blending station at our Mount Ayr location. Our blender pumps opened for business on July 1 at the new fuel site north of our Mount Ayr Country Store. Offering fuel for virtually any type of vehicle or piece of equipment, this site features both an ethanol and biodieselblending dispenser.
the cooler weather on blends higher than #2 B5. Cloud point on B99 biodiesel is around 35 degrees Fahrenheit.
Ethanol blends include 87-octane E10 for use in all vehicles, registered E15 for use in all 2001 and newer vehicles (Sept. 16 through May 31 each year) and flex-fuel vehicles (only June 1 through Sept. 15), and E30 and E85 for use in flexfuel vehicles only. E30 has proven to have the “sweet spot” of mileage efficiency for the price difference compared to E10.
Also available on both large and small nozzles, #2 premium B5 dyed diesel offers a non-taxed option for customers wishing to fill off-road equipment. The clear and dyed diesels sold are premium Cenex® products: Roadmaster XL® and Ruby Fieldmaster®. More information on these products can be found by calling Darin Schlapia at 641-202-1403.
The biodiesel blending dispenser uses base blends of #2 premium B5 Diesel and B99 biodiesel to make B11, B20, and B30 biodiesel blends. While all diesel engines can use any blend of biodiesel, it is recommended you check with your original equipment manufacturer for warranty restrictions on biodiesel blends above #2 B5.
Like our other fueling locations, Mount Ayr is pay at the pump only, accepting all major credit cards—Visa®, MasterCard®, Discover®, American Express®, Fleet One Local, Wright Express®, and Voyager. The dollar limit per card swipe on credit cards varies anywhere from $99 to $450 depending on the card. Also accepted is our Farmers Cooperative local card, which is tied to your cooperative account. It has a per swipe limit of $500, with higher limits available upon request. Applications for local cooperative cards can be obtained at our Mount Ayr, Afton, or Creston locations.
Available on both large and small nozzles, the #2 B5 blend has the same characteristics as regular #2 diesel and is known to replace valuable lubrication lost in the ultra-low sulfur #2 diesels on the market today. The B11 blend has proven to be the most economical choice for engine lubrication and mileage efficiency. An important note to those using higher blends of biodiesel, run your tank low in late October and fill up with a fresh tank of #2 B5. This will alleviate any gelling problems in
During the winter months, the biodiesel blending dispenser will be converted to a #2 and #1 blending dispenser to give customers a choice of winter blends, and the ability to purchase straight #1 diesel. Stay tuned for more details later this fall.
Farmers Cooperative is excited to be offering these great American-made ethanol and biodiesel products. We’re proud to add value to the commodities our members and customers raise. Thank you for your business. u
3
See What’s New at the Creston Office Show Room Want to take a sneak peek of how work is progressing at the new office and show room in Creston? Crews are hard at work to finish the new, energy-efficient 60-foot by 75-foot office. This facility will include a show room where we can feature animal health products, show supplies, feed displays, fencing supplies, and pet food. We’ll also have a second story with meeting room space. The new building is connected to the warehouse, which was constructed in 2009. The loading dock of the new facility is located on the north side of the building. Our two geothermal heat and cool units, along with their 10 vertical wells, were installed and became operational the first week of July. Highly efficient LED lighting has been installed throughout the new building. On the inside, drywall and painting has been completed. Wood trim was completed the last week of August, and wood staining is slated for the first two weeks of September. Then, cabinets and counters will be installed along with the finishing touches on ceilings, lights, and wiring. We hope to be moved in by Oct. 1. The new office will improve the experience for the most important people at our cooperative, our customers. Thanks for your business. u
Creating the Future By Larry Weis, board president
The best way to predict the future is to create it. That’s why the boards of directors for Farmers Cooperative of Afton and United Farmers Mercantile Cooperative (UFMC) have started a comprehensive study to determine how we can best meet the needs of our farmer members now, and in the future. The study will answer a lot of questions for us. The directors will not have the authority to commit either cooperative to any course of action. Our job is to provide input, ask questions, review all studies and reports, make recommendations, and represent the interests of each cooperative’s membership.
Our general goal is that both cooperatives gain as a result of this process. Each company has its own core assets that are valuable to the other organization. We want to see if we can leverage these assets to attract and retain talent, increase our buying power, remain competitive, and bring more value to our producers. Farmers Cooperative will communicate regularly with you about the progress of this study. We encourage you to bring any questions and comments regarding this study to any of our board members or Jim Schendt, general manager. We value the information that will come from this study and hope it will make us a better company for today’s producers and the next generation of farmers. u
4
Mount Ayr Fertilizer Plant Offers Three Big Benefits By Dave Shields, agronomy manager
The new 5,200-ton dry nutrient plant in Mount Ayr is coming along well, even though Mother Nature created a lot of challenging conditions this year. This progress is good news as you prepare for fall and plan ahead to the 2016 crop. The plant’s main building and equipment are all in place. Now crews are working on the electrical systems and are adding finishing touches so the plant will be ready for use yet this fall. This plant will provide three big benefits: 1. Greater efficiency. This plant will allow us to obtain efficiencies in product placement before the peak season. Through better labor management and improved time management for fertilizer mixing and loading, we can provide more product offerings across our trade territory. 2. Higher nutrient performance. The Mount Ayr plant will be capable of treating inbound and outbound crop inputs with value-added products that fit with the 4R
5
Nutrient Strategy of sustainable crop production. This will also maximize the performance of crop nutrients. 3. More buying power. The new plant will allow us to handle larger volumes, which should give us better buying opportunities and create a better cost position for you. As we saw in early August, crop nutrient manufacturers and distributors continue to consolidate. The ability for us to partner with these suppliers and better predict crop nutrient needs and placement will translate into more cost-effective crop inputs for you. These suppliers are much more willing to provide the best pricing when there’s a forecast in place, rather than trying to provide products on the spot. If you’re in the Mount Ayr area, check out the new fertilizer plant, and give us the opportunity to offer you a better cost per bushel of production. u
196 E. Railroad | PO Box 19 Afton, IA 50830
www.farmerscoopco.com
Find Fuel Options at J20 Station By Darin Schlapia, Creston location manager
Headed to the Sun Valley Lake area? Farmers Cooperative Company is already there, since we acquired a fuel station east of Ellston on County Highway J20 on August 3. This unmanned station is a good fit with our operation because: • We have many current customers in the area, as well as a new group of customers who live and work in the Ellston/ Sun Valley Lake area. All can benefit from this convenient, modern fueling location. • The site, built in 2007 by J20 Fuel, LLC, includes a fourproduct, eight-hose dispenser offering 87 octane E10 gasoline, premium 91 gasoline, clear Cenex® Roadmaster Diesel, and dyed Cenex Ruby Fieldmaster® diesel, all underneath a 24-foot by 24-foot canopy. • The J20 fuel station accepts all major credit cards, along with our local cards tied directly to your Farmers Cooperative Company charge account.
• The fuel station is located within our trade territory, almost equal distances to our Afton, Mount Ayr, and Osceola locations. We’re excited to offer high-quality Cenex premium gasoline and diesel products to the Ellston/Sun Valley Lake area. Stop by the J20 station next time you’re in the area. If you have any questions about this new fueling station, call me at 641-202-1403. u
FARMERS COOPERATIVE COMPANY GRAIN POLICY EFFECTIVE SEPT. 1, 2015 DISPOSITION OF GRAIN: Driver will provide accurate information to the scale operator as to the owner’s name or names and the instructions for the grain (sell, store, price later, grain bank, etc.). Grain without instructions will be stored. Please notify the scale operator of the last load. Each load of grain will be settled within 10 days of delivery. CONTRACTED GRAIN: Grain delivered against a sale contract will be applied to the oldest contract first. No early delivery of contracted grain is allowed without prior approval. If delivered early, payment will not be made any earlier than if delivered as contracted. DEFERRED PAYMENT: Grain may be placed on deferred payment prior to settlement time. Once grain is placed on deferred payment it cannot be changed. DIRECT SHIPMENT: All grain delivered to an area processor or terminal under the account of Farmers Cooperative Company will be settled on a load-by-load basis and discounted using the respective destination’s discount schedule. TREATED GRAIN: Any and all treated grains will be rejected. No exceptions. UNTARPING: All trucks must be untarped before pulling on scales. NO AVERAGING: Grain will be settled on a load-by-load basis. PLUGGED LOADS: Loads with obvious grade differences observed at unloading in varying parts of the load will be subject to re-inspection and possible rejection. HOURS: Dumping hours will be extended during the harvest season to accommodate your harvest needs. Hours will be posted at each location and are subject to change due to weather, space, etc. STORAGE RATES: Grain placed in storage will have a minimum of 15 cents for the first 100 days. Storage will then be calculated at a rate of $0.0015 per bushel per day. GRAIN THAT DOES NOT MEET #2 GRADES WILL NOT BE ALLOWED TO BE PLACED INTO STORAGE. Storage will be charged at month-end from January through August. GRAIN BANK STORAGE: Storage will be calculated at $0.0009 per bushel per day. There will be no charge for the first 60 days. PRICE-LATER CHARGES: Grain placed on a price-later contract will have a minimum charge of 6 cents for the first 30 days and thereafter will be accessed a service charge of $0.0015 per bushel per day until sold. All grain placed on price-later contract at harvest must be sold by August 26, 2016. ALL CONTRACTS AND SELLING OF GRAIN WILL ONLY BE DONE WHEN THE BOARD OF TRADE IS IN SESSION.
GRAIN POLICY SUBJECT TO CHANGE AS MARKET DICTATES • EFFECTIVE SEPT. 1, 2015
SOYBEANS TEST WEIGHT
CHARGE PER BU
MOISTURE DISCOUNT
SHRINK PER BU
SPLITS DISCOUNTS PER BU
DAMAGE HEAT DISCOUNT PER BU PER BU
54 lbs or more
13.1% to 13.5%
1.50%
20% or less
.3 to .5%
2¢
53.9 to 53
1/2¢
13.6% to 14.0%
3.00%
20.1 to 25
1/4¢
.6 to 1.0%
4¢
52.9 to 52.0
1¢
14.1% to 14.5%
4.50%
25.1 to 30
1/2¢
1.1 to 1.5%
6¢
51.9 to 51.0
1 1/2¢
14.6% to 15.0%
6.00%
30.1 to 35
3/4¢
1.6 to 2.0%
8¢
50.9 to 50.0
2¢
15.1% to 15.5%
7.50%
35.1 to 40
1¢
2.1 to 2.5%
3¢
10¢
2 1/2¢
2.6 to 3.0%
4¢
12¢
Under 49 lbs subject to rejections or discount on merit. Over 15.5% will not be stored, subject to rejection. Over 40% subject to rejection or discount on merit. NOTE: Over 8% damage or 5% heat damage subject to rejection.
3.1 to 3.5%
5¢
14¢
3.6 to 4.0%
6¢
16¢
4.1 to 4.5%
7¢
18¢
4.6 to 5.0%
8¢
20¢
49.9 to 49.0
FOREIGN MATERIAL:
All foreign material over 1% expressed to nearest tenth of a percent will be deducted from the
gross weight. Soybeans with excessive pods and stems will be subject to rejection.
HEAT DAMAGE:
Heat damage will be discounted as heat damage and total damage.
GREEN BEAN DAMAGE: Subject to special discounts or refusal. OTHER DISCOUNTS:
10¢ per bushel for sour, musty, heating COFO notations, sticks, stones, dirt.
CORN TEST WEIGHT
CHARGE PER BU
53.9 to 53.0
2¢
52.9 TO 52.0
4¢
51.9 TO 51.0
6¢ FOREIGN MATERIAL: Corn with excessive cob will be 8¢ subject to rejection.
50.9 TO 50.0 49.9 TO 49.0
MOISTURE SHRINK DRYING 1.45%/point
4¢/point
FOREIGN MATERIAL DAMAGE DISCOUNT DISCOUNT PER BU
HEAT
3.1 TO 4.9%
2¢/point
.3 to .5%
2¢
5.0 & up
3¢/point
.6 to 1.0%
3¢
1.1 to 1.5%
6¢
1.6 to 2.0%
9¢
2.1 to 2.5%
12¢
48.9 TO 48.0
15¢ OTHER DISCOUNTS: 10¢ per bushel for sour, musty, 18¢ weevils, heating, and COFO.
2.6 to 3.0%
15¢
47.9 TO 47.0
21¢
3.1 to 3.5%
18¢
3.6 to 4.0%
21¢
TEST WEIGHT CHARGE MOISTURE FOREIGN MATERIAL PER BU DISCOUNT PER BU 37.9 to 36.0 2¢/# 13.1 to 14% 3¢ 3.1% & up 2¢/point 35.9 to 32.0 3¢/# 14.1 to 15% 6¢ 31.9 & below 4¢/# 15.1% & up rejected
4.1 to 4.5%
24¢
4.6 to 5.0%
27¢
OATS
5.1 to 10%
2¢/PT
10.1 to 20%
3¢/PT
20.1 & up
4¢/PT
FOREIGN MATERIAL: Other grain is considered foreign material. OTHER DISCOUNTS: 10¢ per bushel for musty, heating, and weevils. MOISTURE LIMITS Sell Price Later Warehouse Grain Bank
CORN BEANS OATS 15.0 13.0 13.0 15.0 13.0 14.0 13.0 13.0 14.0 13.0
