December 2015 Volume 11 • Issue 4
The Ag
ADVISOR
Afton Main Office 641-347-8428 800-342-1556
Where Will We Be a Year From Now?
Arispe 641-346-2224
When you look back a year from now, what will you have wished you started today?
Creston 641-782-7202 800-845-7202
These kinds of questions come up when everyone is focused on a new year and new beginnings. As we head into 2016, we’re already well underway starting the process of finding new ways to keep your cooperative competitive. The time is right, especially with the downturn in ag economy, tighter margins, and the need to stay competitive as we find the new normal in agriculture.
Diagonal 641-734-5303 Elwood, KS 913-365-8041 Indianola 515-961-6300 Macksburg 641-768-2436 Mount Ayr 641-464-3821 Osceola 641-342-2139 Shenandoah 712-246-2253
By Jim Schendt, general manager
In 2015, we began a comprehensive study with United Farmers Mercantile Cooperative (UFMC) at Red Oak to see if there are ways we can work together to serve you better. As the boards of these two cooperatives continue to hold joint meetings, we’re looking to the future to better utilize assets and gain efficiencies of scale. That’s what our members need. If we can put a merger together, it’s clear the additional feed volumes will benefit us. We’ve also identified $1.5 million in potential savings and/or margin enhancements through increased efficiencies and volumes with this potential unification. Some are related to agronomy, some come from grain
arbitrage, while others are connected to expense cutting. Savings will not come from staff cutting, however. Employees from both cooperatives will be retained. A potential unification will create more opportunities for them, as well as future employees. It’s important to note that both your cooperative and UFMC are financially solid.
We are seeking new opportunities from a position of strength, not weakness. As we share more details with you in the weeks ahead, know that our goal is to remain relevant to you, the farmer. When we look back a year from now, I’m confident your cooperative will provide new opportunities that will benefit you. Thanks for your continued support. I wish you a prosperous, successful 2016. u
Are There Any Answers for 2016 Crop Decisions? By Dave Shields, agronomy manager
With the 2015 crop year behind us, how did we do? Have you evaluated your results (yields and input costs by management zones within fields) to develop your plans for 2016 and beyond?
pure luck). I can’t stress enough the value of precision soil sampling and the variable application of crop nutrients to help you maximize your crop input investments.
I hear a lot of you saying $3.50 corn and $8 beans don’t cash flow. Think of it this way: if it were easy to generate a positive cash flow every year, wouldn’t everyone be in crop production?
With the extreme variability in soils throughout our area, and variability within your own fields, precision soil sampling and variable application are key tools to help you manage your input costs.
Also, keep in mind that decisions driven by emotions rather than data tend to produce results that are very unpredictable. That’s why smart management will be more important than ever in 2016.
We’re here to help
Simply slashing input costs does not directly boost your bottom line. Think about the products and practices that performed in the past and gave you a return on your investment in 2015 as you make decisions for 2016.
We can’t help you make input purchasing decisions for the best returns, however, without doing a total agronomy package. All these decisions are tied together on every square foot of your fields. We have the tools and the training to help you make the best possible input decisions for your unique needs.
Soil sampling is a key to help you manage your input costs. Here’s the best way to maximize your input investment
Setting yourself up for success in 2016 also means applying inputs based on the 4R strategy of the right source, right rate, right time, and the right place to get positive returns. Ask yourself: • What was your nitrogen efficiency this past year, in terms of per bushel of production? • Are there areas of your fields where nutrients are consistently over applied? • Are there areas of your fields where nutrients are consistently under applied, and yield potential has been limited from lack of nutrients? • Are you matching crop nutrient applications with your seed decisions? • What are the requirements of your seed genetics for nutrients, populations, disease management, and planting practices? When you consider all these factors, it’s clear you can’t do a blanket approach to a field and expect good results (without
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Our agronomy sales staff is ready to help answer your questions and develop the right program for your acres to get the best return on investment in 2016.
We also can help you monitor your crops in season to evaluate how things are progressing. Count on us to help you make the many daily decisions that will affect your crop yield and deliver the best cost of production at harvest. Gain the cooperative advantage
That’s the advantage of working with a cooperative. Our agronomy team’s job is to not make returns for Wall Street investors or to send profits out of state or out of the country. We have one goal—provide the products and services our members need. While I know it can feel like there are no good answers for the 2016 crop, let us give you a new perspective. Remember, successful crop production is not about making input purchasing decisions based on emotions or “good deals.” It is all about working with a trusted partner to develop a total agronomy strategy that delivers positive returns. We appreciate your continued support and look forward to working with you in 2016. u
©2015 Farmers Cooperative Company. All Rights Reserved. Published in partnership with VistaComm® (www.VistaComm.com).
E15 Frequently Asked Questions By Darin Schlapia, Creston branch manager
We’re pleased to offer a wide range of fuel options at Farmers Cooperative Company, including E15. Here are some answers to commonly-asked questions about E15. What is E15?
E15 is a blend of 15% ethanol and 85% gasoline. It contains 5% more ethanol than E10, which is the most common fuel used in the U.S. E15 is higher in octane – typically 88-90 octane compared to E10, which has an octane rating of 87. Is E15 safe to use in my vehicle?
E15 is safe and approved for all 2001 and newer cars, trucks, and SUVs. These model years represent more than 80% of vehicles on the road today. E15 is the most tested fuel in history and has no effect on vehicle drivability or emissions. More than 100 million trouble-free miles have been driven on E15 to date. Where can I buy E15?
Farmers Cooperative Company offers E15 and a wide range of other fuel options at our renewable fuel stations located in Creston and Mount Ayr. Look for the orange and black E15 sticker on the second to left hose at the ethanol blending dispensers. u
Rep. David Young Visits Diagonal Feed Mill Iowa Congressman David Young toured our feed mill and location in Diagonal on Nov. 13, to hear directly from us about this year’s harvest, the challenges we have faced, and the outlook for the next year. This builds on Congressman Young’s “Ag Tour Day: Bringing in the Harvest,” where he visited Iowa grain elevators in October in Dallas, Madison, Polk, and Warren Counties. “The co-ops I visited, including Farmers Cooperative Co. in Diagonal, allowed me to hear directly from Iowa’s agricultural producers,” Young said.
Rural America needs its voice to be heard and its priorities to be represented in Congress. “Unfortunately, there are fewer and fewer representatives in the U.S. Congress who understand the challenges our farmers are facing,” said Young, who recently introduced legislation this fall to restore cuts to crop insurance. “I think that’s why you see so many attacks on agriculture – from proposals to lower the Renewable Fuel Standard levels to over-arching, burdensome regulations like Waters of the U.S. By ensuring rural America is part of each discussion, we are protecting America’s breadbasket for future generations.” u
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Is Your Membership Information Current? The Farmers Cooperative Board approved two equity payouts to the membership during 2015 with 2 different criteria in mind. First in March checks were mailed to anyone who turned age 75 and 74 in 2014 for a total of $285,421.53. Then in August, any members who earned deferred equity (business done) in 1984 and prior were mailed checks totaling $375,960.60. This brings the total amount to $661,382.13. As the board strives to return
equity to the membership keeping the member information current is critical. All changes to birthdays, addresses, phone numbers, or questions regarding patronage can be taken care of by calling Kim Hardisty at 641-347-8428. Addresses and/or phone numbers are need for the following members:
Alfred Lafferty Co.
Paul Olson
Paul McKinney
Hugh Brown
Harold Sandquist
Galen Slye
Gary Crawford
Keith Schumaker
Charles Smith
Dennis Derenzy
Steve South
Eric Taylor
D. A. Jennings
Thomas Stewart
Jim Woosley
Rick Jimmerson
Bryan Young
Jessie Young
KRK
Johnson Farm Co. Inc.
Kuipers Grain & Livestock
(Harold Johnson)
Lawrence Nelson
Jim Jungman
Bill Schneck with Farmers Cooperative Co. answers questions from Rep. David Young during a tour of the feed mill in Diagonal.
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Mt. Ayr Fertilizer Facility is Now Operational Our 5,200-ton dry crop nutrients facility at Mt. Ayr is complete and went into operation the second week of November. This state-of-the-art facility is equipped with the latest technologies that will provide you and your cooperative with many benefits, including: • Greater efficiencies with product procurement and transportation. • The ability to service a larger area of our trade territory. • More product variety. • Operational/labor savings. • Operational savings in fertilizer blending and load out. • The ability to add product enhancements for better crop nutrition management with the best environmental performance and product handling integrity. Give us the opportunity to give you a better cost per bushel of production. We look forward to serving you. u
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Here’s an inside look at our new stateof-the-art fertilizer plant, which opened in mid-November.
196 E. Railroad | PO Box 19 Afton, IA 50830
www.farmerscoopco.com
New Office and Showroom in Creston Now Open for Business Our new, energy-efficient 60-foot by 75-foot office in Creston opened Nov. 11. Stop by and take a look at all we offer, including: • A show room featuring animal health products, show supplies, feed displays, fencing supplies, and pet foods. • A second-story area with meeting room space. • A direct connection to the warehouse. The loading dock of the new facility is located on the north side of the building in close proximity
to the customer service counters. • Our current truck scale will stay in the same spot, and we will be removing the old blue building in the near future. This will allow better visibility of the scale from the road, improving traffic flow and helping create a better customer experience for you. Thanks for your business. We look forward to serving you and wish you a successful 2016. u