NORTH CENTRAL
North Central Farmers Elevator Solutions for Your Success
Octobe r 2009
VOLUME 15 • NUMBER 5
Worry-Free Fuel Management
By Troy weig, Petroleum Manager, and STEVE HINDS, Certified Energy Specilaist It’s happening across the NCFE countryside—our new automatic fuel delivery system is underway. We have begun installing tank monitors on the eastern side of our trade territory and are working our way north, south, and west. Currently, just under 200 customers now have monitors installed. What are they saying? “We would never go back to the old way.” “We love the handiness of no longer having to worry about checking tank levels.”
The new system…is completely free. The monitors are installed at no cost to you. When fuel drops below a predetermined level set by you, the monitor sends a signal to our fuel distribution center. That generates a delivery order, and the nearest truck is routed to fill your tank. It’s new. It’s different. We understand it’s a big change from the old system of checking, calling, and waiting. So why should you think about going automatic? Quite simply, it’s convenient. No more hassles about
You can choose Average Monthly Pricing. The price you’ll pay for fuel is equal to the 30-day average price of fuel for the billing cycle. Looking at this chart, you can see how this removes market extremes, meaning you no longer have to worry if you bought at the exact right time.
See us on the web at www.ncfe.coop
checking tanks and ordering fuel, or unintentionally running out because you’ve forgotten to look. The new system also provides you with more, not less, pricing options. You can choose delayed billing, which is similar to how you pay for electricity—paying only for the fuel you use each month. You have the option to choose average monthly pricing, explained on the chart on this page. You can still contract your fuel. You can still receive volume discounts. If you like current fuel pricing, you always have the option to buy out the fuel in your tank at any time. In other words, you’re still in control of your fuel management. You just no longer have to check all your tanks during winter or on those long 16-hour harvest days or drive to your multiple sites to look at tank levels. Curious about the system? Consider this an open invitation to call us anytime and talk fuel management. We’d love to get your free tank monitor ordered and add you to the growing list of very satisfied automaticfuel-delivery customers. Contact Steve at 216-7905 or Troy at 426-6782. s
The Harvest Nears By KEITH HAINY, General Manager
some rolling stock needs throughout our trade territory, along with many facility enhancements. One other need that has been discussed and is under exploration is the possibility of building a new corporate office. This will not be an easy decision to make. However, we have slowly outgrown our present facility, and besides space, it has other limitations that do not serve your cooperative or employee team. We’ve already had this issue on the backburner for quite some time and must also look ahead to both our current and future projected needs. Be assured, if office construction does eventually go forward, the building would be an efficient structure that meets the needs and image of a hard-working cooperative, without being extravagant. I sincerely hope you heed the request from the frontpage story about automatic fuel delivery and call and ask questions. There’s always some uncertainty when change is implemented, especially one as new and innovative as this. We have heard nothing but positive comments about it from this first group of customers. Besides the fuel distribution efficiencies we gain, customers are really liking the choice in pricing, along with the convenience of automatic fuel orders. Have a great fall. NCFE is looking forward to going to work for you this harvest. s
What a growing season we’ve been blessed with this year! Moisture has been abundant, and now we are hoping the crops can reach full maturity. Like you, we are hoping to avoid the harvest issues that would come from an early frost. We also want to stress the need for making it as safe a harvest as possible— slow down, stay alert, and enjoy the potential bumper yields with an accident-free combining season. Results from our shortened 7-month fiscal year were exceptional. Profits were at $6.3 million, due to tremendous support from patrons and the work ethic by our employee team. North Central will utilize the DPAD available and will distribute $2.5 million in patronage in January, 2010 with 60% paid in cash. Along with the new fiscal year comes a new date for the annual meeting: Jan. 7. Possible capital expenditure projects also are being closely examined by the board and advisory committees. The emphasis is always on efficient spending that best serves our members for the future. We know there are
Nominating Committees for Director Vacancies
Four director terms will expire at the January 7 annual meeting: Ken Olson, Jr., Larry Olson, Derek Merkel, and Dale Gill. Director elections are conducted by mail ballot only. Patrons interested in running for the board, or submitting a director nomination, need to contact a nominating committee member from their district. The deadline for submitting candidates is Nov. 10.
South District—represented by Ken Olson, Jr.
North District—represented by Derek Merkel
East District—represented by Larry Olson
West District—represented by Dale Gill
Nominating committee members: • Jim Boekelheide 605-887-3681 • Dwight Melius 605-887-3129
(appointed in March to replace resignation of Dale Hodson) Nominating committee members: • Dale Hodson 605-426-6349 • Wes Palmer 605-225-4761
Nominating committee members: • Lloyd Schaunaman 605-439-3397 • David Rath 605-439-3464
Nominating committee members: • Tom Fiedler 605-649-6280 • Craig Rau 605-284-2311 s
Allocating the DPAD Pass-Through By JOE ZIKMUND, Controller
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In January, we notified patrons that NCFE would calculate and take the Domestic Production Activity Deduction (DPAD). We wanted to ensure there was no double counting on the DPAD calculation, since your cooperative did use it. With the 2008 crop year, we have computed the DPAD in accordance with statutory rules and will pass through a portion of our deductions to members.
$710,000 is being passed through and will be given back to you based on 2008 grain sales. Your DPAD allocation will be reported in Box 6 of your 2009 1099-PATR from us. Please contact us with any questions in addition to consulting with your own tax advisor about how it applies to your situation. s
©2009 North Central Farmers Elevator. All Rights Reserved.
Published in partnership with VistaComm® (www.VistaComm.com).
Very Satisfying Wheat Harvest By MIKE NICKOLAS, Grain Manager
just as the harvest was ending. In fact, we extended the delayed price program before going to cash only at a few of our northern locations to help accommodate as many farmers as possible. In order to make room for the soybean and corn harvest, we will need to ship and sell a majority of the DP wheat bushels. Even though we have a 5¢ per bu. per mo. DP charge, it is not near enough to cover the rally in basis that we have seen in the past few weeks for spring wheat. While wanting to do as much as possible for our member owners, we need to be aware of the amount of risk the company can absorb. As we look forward to the row crop harvest, we have adjusted our drying charges to reflect the lower cost of drying. Drying charges for corn will be 4¢ per point starting at 14.5 moisture, and we will again shrink and dry to 14.5 moisture. Please welcome Glen Opp to the NCFE grain team. Glen has many years of experience in the grain business and brings lots of knowledge with him. He can be reached at 800-658-3353 or his direct line at 605-4266848. Please stay safe, be careful, and Need Additional Grain Storage? have a great fall harvest! s Condo Leases Available Advantages include: • NCFE responsible for quality Market Update Texts maintenance and shrink Get market updates sent to • Lower cost per bushel of space your phone via text messaging. • One-time handling—from combine It’s a handy way to stay on top to truck to elevator of markets. Texts are sent out • Grain always available for immedithree times a day: ate sale and cash • 10:00 a.m. • Not subject to high delayed-price • Noon charges • Closing markets • Guaranteed buy-back provisions The service is free. Howevmakes it a saleable asset er, your standard text messaging rate plan may apply. Sign Contact NCFE at 426-6021 or 800-658up by calling Kyle at 426-6021 3353 for more information or check or 800-658-3353. out the website at www.ncfe.coop.
Looking back at this year’s wheat harvest, we were very blessed with the yield and quality of both winter and spring wheat harvested in our trade territory. Even though we had some delays with the spring wheat not drying down the way we wanted to see it, we were more fortunate than our neighbors in North Dakota. While yields varied throughout the territory, the producers I talked to were pleased with their results. Overall, we saw winter wheat proteins average 12.8 and test weights average 60.5. Overall spring wheat proteins averaged 14.2 including some 15.0 protein bushels, although those bushels were less than 10% of the crop. Spring wheat test weights also averaged 60.5 pounds. Each year, we evaluate the amount of risk the company is willing to assume for delayed price Delayed Price Program bushels of wheat. Corn: 5¢ per bu. per month This year was Soybeans: 5¢ per bu. per month no different. We DP is limited to space availmaxed out at 5.0 able at each location. DP charges million bushels will be calculated the same as in past years, with 15 days free from average unload date of each assembly sheet. If not priced with the 15 days, DP charges will be calculated from average unload date. Note: The title of grain passes to the elevator when grain is delivered on DP. Pricing of grain off of DP will be based on the current day’s market. DP cannot be applied to contracts for future delivery periods. Once grain has been delivered as D.P., it only qualifies for an LDP if there was one on the day it was delivered and the paperwork required at the FSA office has been completed prior to delivery.
Your Fuel Delivery Team
Have questions about fuel products, automated delivery, or monitor systems? These guys know a lot more than just how to drive trucks and fill tanks. They can provide you with detailed fuel management information. Talk to your driver today about a monitor for your tank. • Jason Heagley 216-7686 • Kent Weiszhaar 216-0810 • Chad Barringer 380-0358 • Lee Schlosser 216-2442 s
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Herreid Elevator Becomes Feed Mill By DAN PUFFER, Director of Operations, Dakotaland Feeds, LLC Dakotaland Feeds LLC recently purchased the NCFE east elevator in Herreid (often called the oats house), for conversion into a feedmill. It will be the manufacturing point for complete swine feeds for the PIC units located near Mound City, SD. We have been manufacturing for PIC over the last several months in the Huron facility. But as PIC expansion proceeds, the need for local manufacturing is evident. The east elevator was an easy choice as it allowed one of Dakotaland Feeds corporate owners, NCFE, to be a part of the PIC expansion project. The elevator was under-utilized but well maintained and very solid, allowing for a cost-effective renovation.
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Construction began in early July and has been progressing steadily since. The excavation and dirt work was completed in early August by local contractors, allowing for the concrete work to be completed in mid-August. Once the 3-ton mixer was installed, the building addition itself could begin. By mid-September, the 30’ x 50’ warehouse addition was completed, which allows for interior construction to hit high gear. In the next few weeks, the two new product legs will be installed, and the current unload system will be remodeled. Currently, the mixer scale hopper is being constructed and installed, and a conveyor to move the scaled product to the mixer is nearing completion. The next piece of equipment to arrive will be the new Roskamp triple roll mill. This state-of-the art roller mill will meet all customer expectations by supplying properly sized corn for these multiple diets. To finish the project,
a 4-bin load-out facility will be constructed on the north side, which will gravity-fill the delivery equipment. We are excited to begin manufacturing feed in this facility and expect to begin in November. A long-term agreement has been signed with PIC, which will use area corn, DDG, and various other ingredients in these diets. We will also be hiring a small group of area employees in the very near future to operate this facility. We look forward to operating this mill in Herreid and sharing in the community growth. With partners such as NCFE and PIC Inc, the future will be bright. Editor’s note: Dan Puffer became Dakotaland Feeds director of operations about a year ago. He is supervising Herreid mill renovations in addition to many other duties. s
New Hague Location Manager
New Lebanon Location Manager
Eric Hulm began his new position in October. Eric graduated from the North Dakota School of Science last spring, with a business degree that emphasizes marketing manager skills. Previous employment experience includes seed sales. Home is Strasburg, ND, where Eric grew up on the family farm. Eric, and his fiancée, Andrea Prante, are planning a 2010 wedding. s
Travis Jost began his new position in September. Travis is an SDSU and LATI graduate. After graduation he worked as a crop consultant in Nebraska and more recently was with another South Dakota cooperative. Travis and his wife, Jessica, will soon be moving from Redfield to Potter County. They have two daughters, Vivian, 4, and Olivia, 2. s
Reducing Weaning Stress
By Scott Kilber, Feed Specialist
It’s weaning time and I want to review a few recent strategies taken from the wise words and advice of Dakotaland Feeds Nutritional-Technical Specialist, Roxanne Knock, PhD. Please don’t hesitate to call your nearby Dakotaland Feeds location for further information. Weaning means stress. For calves to remain healthy through periods of stress, their immune system has to be functioning at a high level. One method of accomplishing this has been putting RangeLand™ Stress tubs in the creep feeder area for calves prior to weaning. Water is the most critical nutrient for starting calves. Calves that are not drinking are not eating,
and calves that are not drinking will be more likely to get sick. Feed grass hay/forage in bunk at first. This is a familiar feed to calves and is good to include in a starter diet because it is slowly digestible with little starch and unlikely to cause digestive upset. This is critical because the calves likely have quit eating for at least a short period of time, and high-starch diets will be far more likely to induce acidosis or bloat. Supplement selection will help keep the rumen healthy. Additionally, by providing necessary minerals and vitamins, the immune system will function well while calves are getting started on feed. Use the coupon below to make Stress Care tubs an even better value for reducing the stress of weaning. s
Red Flannel™ Dog Food
Check out our Red Flannel Prime dog food for your four-legged hunting friends. The formula provides energy, strength, and endurance. Its high-quality protein and amino acids help dogs recover after strenuous exercise, as do natural sources of glucosamine for joint health. Omega 3 & 6 fatty acids keep dogs looking vibrant and healthy, while high digestibility promotes small firm stools and easy cleanup. Red Flannel Adult and Country Acres Achiever are also great dog foods for average farm dogs and household pets.
Keep Your Calves Looking Good With Land O’Lakes® RangeLand™ HCP Stress Care Tubs Use this free-choice supplement for calves prior to and after stress, preweaning, and receiving situations. Stress Care Tubs contain Availa 4 for improving the health and performance of newly received or weaned calves. They are also formulated with Diamond V Yeast—for better feed palatability, more consistent feed intake, and better digestibility to help make nutrients more available.
Just In Time For Harvest: Westfield Augers. Huge selection. Great prices. New & Used Available.
✁
Save $5 on each RangeLand™ HCP Stress Care Tub you purchase now through November 30, 2009.
— $5 Off — Purchases must be made through North Central Farmers Elevator to qualify for $5 off per tub. Must present coupon at time of purchase. Limit 5 tubs per coupon. Expires November 30, 2009. Not valid on any other purchase. No cash value.
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Fall Agronomy To-Dos
By Matt Christopherson, Agronomy Marketing Manager, and Lane Mielke, Sales Manager It’s soil sampling time. As soon as possible, get your acres scheduled for their annual soil tests. We are expecting a narrow fall scheduling window because of what could be another extended harvest season, so please call now. The same goes for the doubleshot Horsch Anderson system—call immediately to get on the list. We’ll need all your information ahead of time for proper application work. We are running five rigs across the trade territory, but as successful as doubleshot has become, timely signups are essential.
Seed sales
Seed evaluation and sales are well underway. We’re looking forward to announcing test plot results. Along with our current lineup—Dekalb,® Asgrow,® NK, and Croplan Genetics®—we are adding Mycogen® and Mustang seed to our portfolio. Seed costs, at first glance, seem high. But no other input provides such a return on investment. However to get full value, it’s imperative to position the right hybrids and varieties in your fields. That can be the most yield-limiting factor out there—the wrong seed on the right ground. So we urge you to work closely with your local agronomist as you finalize seed selection.
Glyphosate market
We have really seen volatility in this market, with prices the lowest they’ve been in several years. There’s a lot of talk about glyphosate and saving the most money possible. Obviously, it’s important to get the most per-acre value you can for all your inputs. We remind you to not spend too much time in search of saving cents per acre. Time spent working with your local agronomists at saving dollars per acre is time—and money—more wisely spent.
More time, less volatility
The past few years, with the volatile swings throughout input markets, we’ve sometimes had to make some rushed agronomy decisions. But across the marketplace this year, we hope price swings have calmed down and availability appears stable. So take the time you need to make wise input decisions, while still taking advantage of early program and payment plans. While we always like early seed sales, for instance, more important to us is you making the right seed selections. Additionally, get further value with your input purchases by using our new Burgundy and Gold Program. Details are on the next page. Take your time and ask us questions. We look forward to working with you as we prepare for 2010 planting. s
NCFE Agronomy Sales
No payment due until Monday, Jan. 4 on: • Applied fertilizer products • Applied chemicals • Fall application fees
NCFE Agronomy Department Matt Christopherson: Marketing Manager, 380-1238 or 426-6834 Lane Mielke: Sales Manager, 380-4674 or 426-6839 Rick Arneson: Warner area agronomist, 216-1651 Bob Volk: Java/Herreid/Pollock area agronomist, 216-0086 Brent Neiger: Ipswich area agronomist, 216-4820 Tim Borge: Wecota/Onaka area agronomist, 380-9749 Greg Volk: Hague/Herreid/Pollock area agronomist, 380-5430 Justin North: Leola/Bowdle area agronomist, 216-6684 Jesse Frost: Lebanon area agronomist, 216-7824 Colby Tolk: Warner/Northville area agronomist, 216-6060 Curtis Jandel: Precision Ag Manager, 216-7138
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Why A.S.K.? New to NCFE for fall 2009 is the A.S.K.® fertility recommendation program. Gone are the days when blanket advice and applications of only the three primary nutrients are made. Today, prescription fertilizer recommendations will best optimize crop production management. A.S.K.—Agrintelligence Soil Knowledge—is our solution for custom-prescribing a full fertility program, based on your current fertility and production strategies. Proprietary A.S.K. fertilizer blends have averaged 5-10 bu/a better corn, 3.5 bu/a better soybeans, and 4-5 bu/a better wheat yields over conventional fertilizer blends. These are four-year averages from across the Corn Belt and Great Plains.
It all begins with—what else—soil sampling. Using conventional or composite/zone-type testing, A.S.K. will use the soil results to develop your own proprietary prescription blend. It will be based not only on nutrient levels but also on soil chemistry and biology. The research is overwhelming: new fertilizer formulations like this enhance fertilizer nutrient availability, efficiency, and yield response. We want to emphasize that we are not rolling out one more program to generate sales—we’re offering it because we firmly believe in its value. Our aim is that all your nutrient dollars be invested more efficiently, more wisely, and with what we anticipate is greater ROI value. s
Precision Ag Manager Curtis Jandel began his new position at NCFE in September. Having worked in the agronomy field for over 10 years, Curtis is prepared to handle whatever challenges come his way on the job. He also has had experience with AMS equipment over the past three years, making him a perfect fit for his new position. Curtis makes his home in Redfield, SD and enjoys hunting when he isn’t serving NCFE customers. s
Burgundy & Gold Program
Qualifications for the Burgundy and Gold Program are based on seed, chemical, and fertilizer purchases from NCFE.
Burgundy Option
Receive 1% back on your 2nd highest volume purchased and 2% on your 3rd highest volume purchased, with the rebate check issued in the fall of 2010. Example: Highest volume purchase: seed—$125,000 Second highest volume purchase: fertilizer—$100,000 x 1% = $1000 Third highest volume purchase: chemical—$50,000 x 2% = $1000 Total rebate check: $2000
Gold Option
Receive 1% on your 2nd highest volume purchased and 4% on your 3rd highest volume purchased, with the 4% limited to your 2009/2010 season purchases of Precision Ag Products and/or programs and soybean seed treatments (Warden CZ, Trilex 6000 and Cruiser Max). The check will be issued in the fall of 2010. Example: Highest volume purchase: seed—$125,000 Second highest volume purchase: fertilizer—$100,000 x 1% = $1000 Third highest volume purchase: chemical—$50,000 x 4% = $2000 Total Trilex 6000 purchases: $2000 Total Precision Ag purchases: $2000 Total rebate: $3000
SIGNUP FOR EITHER OF THESE PROGRAMS IS REQUIRED BY JANUARY 1, 2010. CONTACT A MEMBER OF THE AGRONOMY TEAM TO SIGN THE REQUIRED PAPERWORK. s
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DIRECTORY Ipswich . . . . . . . . . . . . . . . 605-426-6021 Toll-Free . . . . . . . . . . . . . . 800-658-3353 Auto Center . . . . . . . . . . . 605-426-6782 Chemical Shed . . . . . . . . . 605-426-6999 Farm Store . . . . . . . . . . . . 605-426-6163
PO Box 366 Ipswich, SD 57451
Farm Store Toll-Free . . . . . 877-232-4692 Bowdle . . . . . . . . . . . . . . . 605-285-6533 Toll-Free . . . . . . . . . . . . . . 800-584-9286 Petroleum . . . . . . . . . . . . 605-285-6570 Craven . . . . . . . . . . . . . . . . 605-426-6591 Fertilizer . . . . . . . . . . . . . . 605-426-6535 Hague, ND . . . . . . . . . . . . . 701-336-4673 Herreid . . . . . . . . . . . . . . . 605-437-2744 Toll-Free . . . . . . . . . . . . . . 888-437-2744 Petroleum . . . . . . . . . . . . 605-437-2415 Java . . . . . . . . . . . . . . . . . . 605-649-6291 Petroleum . . . . . . . . . . . . 605-649-6241 Lebanon . . . . . . . . . . . . . . . 605-768-9465 Leola . . . . . . . . . . . . . . . . . 605-439-3137 Petroleum . . . . . . . . . . . . 605-439-3147 Sun Terminal . . . . . . . . . . . 605-426-6843 Northville . . . . . . . . . . . . . 605-887-3441 Onaka . . . . . . . . . . . . . . . . 605-447-5803 Pollock . . . . . . . . . . . . . . . . 605-889-2321 Warner Elevator . . . . . . . . 605-225-8247 Petroleum . . . . . . . . . . . . 605-225-9608 Wecota . . . . . . . . . . . . . . . 605-324-3200
BOARD of DIRECTORS Richard Osterday – Java, President Larry Vetch – Onaka, Vice-President Quentin Larson – Pollock, Secretary Ken Olson, Jr. – Turton Lynn Deibert – Herreid Bryan Bauer – Mina Dale Gill – Java Dave Heidenreich – Wecota Gerald Lacher – Lebanon Derek Merkel – Leola Phillip Shanley – Warner Larry Olson – Ipswich
Our Mission: To be an agricultural leader in serving our customers’ needs with integrity, innovation, and profitability.
Following Wheat Market Rallies By JEREMY VANDER VORST, Benson-Quinn Branch Manager
An extremely large SD wheat harvest caused prices to fall rapidly. With harvest wrapped up, I expect the wheat market to try and rally over the next few weeks. Take advantage of rallies by making sales, as wheat supplies are abundant globally. Rallies will be met with aggressive selling due to the large quantity of unpriced inventory. Producers should look at purchasing call options on wheat they need to sell to make room for row crops. Currently, May 550 spring wheat call options were trading at 33¢ per bushel. Many producers are expecting a large soybean crop. As of Sept. 11, USDA pegged the average U.S. soybean yield at 42.3 bu./a, nearly a 3 bu. increase from last year. Ending U.S. soybean stocks are projected at 220 million bu., a level that is still making trade nervous. If South America experiences production problems, we could see a substantial winter run-up in prices. China is still the market wildcard, as they continue to purchase U.S. soybeans. If this buying trend continues, I would expect the market to stay well-supported. Currently, the soybean market is telling us to sell at harvest, as there is little market carry. November futures were trading at $9.29 and
July beans were at $9.44. This is a 15¢ carry, which is historically low. On the other hand, the corn market has a 31¢ carry from December to July. The corn market has been attempting to get a grip on U.S. crop size. In the latest crop report, USDA estimated a 161.9 bu./a crop, which would be record large. Many expect this number to grow over the next few weeks with normal weather. With the recent drop in prices, ethanol margins have greatly improved, causing USDA to increase corn use for ethanol. Lower prices have increased our exports and corn use for feed. Producers who have unpriced inventory should try and plan a strategy to market their corn before harvest. Some producers are selling corn now for harvest delivery and will re-own corn after harvest with call options or futures contracts. A May $3.40 call option was trading for 30¢ per bushel, relatively cheap compared to the cost of storage and interest. With the drop in corn prices, livestock margins improved. Many feeders have had an opportunity to lock in profits for future months. I expect feed costs to decrease as we near harvest, helping margins and feeder cattle prices. Prices are still sluggish due to the weak economy and poor demand. I am optimistic on prices over the next few months. Please call or stop by the West Bowdle terminal with questions. My number is 877-893-0800. s
Octobe r 2009
VOLUME 15 • NUMBER 5
Worry-Free Fuel Management
By Troy weig, Petroleum Manager, and STEVE HINDS, Certified Energy Specilaist It’s happening across the NCFE countryside—our new automatic fuel delivery system is underway. We have begun installing tank monitors on the eastern side of our trade territory and are working our way north, south, and west. Currently, just under 200 customers now have monitors installed. What are they saying? “We would never go back to the old way.” “We love the handiness of no longer having to worry about checking tank levels.”
The new system…is completely free. The monitors are installed at no cost to you. When fuel drops below a predetermined level set by you, the monitor sends a signal to our fuel distribution center. That generates a delivery order, and the nearest truck is routed to fill your tank. It’s new. It’s different. We understand it’s a big change from the old system of checking, calling, and waiting. So why should you think about going automatic? Quite simply, it’s convenient. No more hassles about
You can choose Average Monthly Pricing. The price you’ll pay for fuel is equal to the 30-day average price of fuel for the billing cycle. Looking at this chart, you can see how this removes market extremes, meaning you no longer have to worry if you bought at the exact right time.
See us on the web at www.ncfe.coop
checking tanks and ordering fuel, or unintentionally running out because you’ve forgotten to look. The new system also provides you with more, not less, pricing options. You can choose delayed billing, which is similar to how you pay for electricity—paying only for the fuel you use each month. You have the option to choose average monthly pricing, explained on the chart on this page. You can still contract your fuel. You can still receive volume discounts. If you like current fuel pricing, you always have the option to buy out the fuel in your tank at any time. In other words, you’re still in control of your fuel management. You just no longer have to check all your tanks during winter or on those long 16-hour harvest days or drive to your multiple sites to look at tank levels. Curious about the system? Consider this an open invitation to call us anytime and talk fuel management. We’d love to get your free tank monitor ordered and add you to the growing list of very satisfied automaticfuel-delivery customers. Contact Steve at 216-7905 or Troy at 426-6782. s
The Harvest Nears By KEITH HAINY, General Manager
some rolling stock needs throughout our trade territory, along with many facility enhancements. One other need that has been discussed and is under exploration is the possibility of building a new corporate office. This will not be an easy decision to make. However, we have slowly outgrown our present facility, and besides space, it has other limitations that do not serve your cooperative or employee team. We’ve already had this issue on the backburner for quite some time and must also look ahead to both our current and future projected needs. Be assured, if office construction does eventually go forward, the building would be an efficient structure that meets the needs and image of a hard-working cooperative, without being extravagant. I sincerely hope you heed the request from the frontpage story about automatic fuel delivery and call and ask questions. There’s always some uncertainty when change is implemented, especially one as new and innovative as this. We have heard nothing but positive comments about it from this first group of customers. Besides the fuel distribution efficiencies we gain, customers are really liking the choice in pricing, along with the convenience of automatic fuel orders. Have a great fall. NCFE is looking forward to going to work for you this harvest. s
What a growing season we’ve been blessed with this year! Moisture has been abundant, and now we are hoping the crops can reach full maturity. Like you, we are hoping to avoid the harvest issues that would come from an early frost. We also want to stress the need for making it as safe a harvest as possible— slow down, stay alert, and enjoy the potential bumper yields with an accident-free combining season. Results from our shortened 7-month fiscal year were exceptional. Profits were at $6.3 million, due to tremendous support from patrons and the work ethic by our employee team. North Central will utilize the DPAD available and will distribute $2.5 million in patronage in January, 2010 with 60% paid in cash. Along with the new fiscal year comes a new date for the annual meeting: Jan. 7. Possible capital expenditure projects also are being closely examined by the board and advisory committees. The emphasis is always on efficient spending that best serves our members for the future. We know there are
Nominating Committees for Director Vacancies
Four director terms will expire at the January 7 annual meeting: Ken Olson, Jr., Larry Olson, Derek Merkel, and Dale Gill. Director elections are conducted by mail ballot only. Patrons interested in running for the board, or submitting a director nomination, need to contact a nominating committee member from their district. The deadline for submitting candidates is Nov. 10.
South District—represented by Ken Olson, Jr.
North District—represented by Derek Merkel
East District—represented by Larry Olson
West District—represented by Dale Gill
Nominating committee members: • Jim Boekelheide 605-887-3681 • Dwight Melius 605-887-3129
(appointed in March to replace resignation of Dale Hodson) Nominating committee members: • Dale Hodson 605-426-6349 • Wes Palmer 605-225-4761
Nominating committee members: • Lloyd Schaunaman 605-439-3397 • David Rath 605-439-3464
Nominating committee members: • Tom Fiedler 605-649-6280 • Craig Rau 605-284-2311 s
Allocating the DPAD Pass-Through By JOE ZIKMUND, Controller
2
In January, we notified patrons that NCFE would calculate and take the Domestic Production Activity Deduction (DPAD). We wanted to ensure there was no double counting on the DPAD calculation, since your cooperative did use it. With the 2008 crop year, we have computed the DPAD in accordance with statutory rules and will pass through a portion of our deductions to members.
$710,000 is being passed through and will be given back to you based on 2008 grain sales. Your DPAD allocation will be reported in Box 6 of your 2009 1099-PATR from us. Please contact us with any questions in addition to consulting with your own tax advisor about how it applies to your situation. s
©2009 North Central Farmers Elevator. All Rights Reserved.
Published in partnership with VistaComm® (www.VistaComm.com).
Very Satisfying Wheat Harvest By MIKE NICKOLAS, Grain Manager
just as the harvest was ending. In fact, we extended the delayed price program before going to cash only at a few of our northern locations to help accommodate as many farmers as possible. In order to make room for the soybean and corn harvest, we will need to ship and sell a majority of the DP wheat bushels. Even though we have a 5¢ per bu. per mo. DP charge, it is not near enough to cover the rally in basis that we have seen in the past few weeks for spring wheat. While wanting to do as much as possible for our member owners, we need to be aware of the amount of risk the company can absorb. As we look forward to the row crop harvest, we have adjusted our drying charges to reflect the lower cost of drying. Drying charges for corn will be 4¢ per point starting at 14.5 moisture, and we will again shrink and dry to 14.5 moisture. Please welcome Glen Opp to the NCFE grain team. Glen has many years of experience in the grain business and brings lots of knowledge with him. He can be reached at 800-658-3353 or his direct line at 605-4266848. Please stay safe, be careful, and Need Additional Grain Storage? have a great fall harvest! s Condo Leases Available Advantages include: • NCFE responsible for quality Market Update Texts maintenance and shrink Get market updates sent to • Lower cost per bushel of space your phone via text messaging. • One-time handling—from combine It’s a handy way to stay on top to truck to elevator of markets. Texts are sent out • Grain always available for immedithree times a day: ate sale and cash • 10:00 a.m. • Not subject to high delayed-price • Noon charges • Closing markets • Guaranteed buy-back provisions The service is free. Howevmakes it a saleable asset er, your standard text messaging rate plan may apply. Sign Contact NCFE at 426-6021 or 800-658up by calling Kyle at 426-6021 3353 for more information or check or 800-658-3353. out the website at www.ncfe.coop.
Looking back at this year’s wheat harvest, we were very blessed with the yield and quality of both winter and spring wheat harvested in our trade territory. Even though we had some delays with the spring wheat not drying down the way we wanted to see it, we were more fortunate than our neighbors in North Dakota. While yields varied throughout the territory, the producers I talked to were pleased with their results. Overall, we saw winter wheat proteins average 12.8 and test weights average 60.5. Overall spring wheat proteins averaged 14.2 including some 15.0 protein bushels, although those bushels were less than 10% of the crop. Spring wheat test weights also averaged 60.5 pounds. Each year, we evaluate the amount of risk the company is willing to assume for delayed price Delayed Price Program bushels of wheat. Corn: 5¢ per bu. per month This year was Soybeans: 5¢ per bu. per month no different. We DP is limited to space availmaxed out at 5.0 able at each location. DP charges million bushels will be calculated the same as in past years, with 15 days free from average unload date of each assembly sheet. If not priced with the 15 days, DP charges will be calculated from average unload date. Note: The title of grain passes to the elevator when grain is delivered on DP. Pricing of grain off of DP will be based on the current day’s market. DP cannot be applied to contracts for future delivery periods. Once grain has been delivered as D.P., it only qualifies for an LDP if there was one on the day it was delivered and the paperwork required at the FSA office has been completed prior to delivery.
Your Fuel Delivery Team
Have questions about fuel products, automated delivery, or monitor systems? These guys know a lot more than just how to drive trucks and fill tanks. They can provide you with detailed fuel management information. Talk to your driver today about a monitor for your tank. • Jason Heagley 216-7686 • Kent Weiszhaar 216-0810 • Chad Barringer 380-0358 • Lee Schlosser 216-2442 s
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Herreid Elevator Becomes Feed Mill By DAN PUFFER, Director of Operations, Dakotaland Feeds, LLC Dakotaland Feeds LLC recently purchased the NCFE east elevator in Herreid (often called the oats house), for conversion into a feedmill. It will be the manufacturing point for complete swine feeds for the PIC units located near Mound City, SD. We have been manufacturing for PIC over the last several months in the Huron facility. But as PIC expansion proceeds, the need for local manufacturing is evident. The east elevator was an easy choice as it allowed one of Dakotaland Feeds corporate owners, NCFE, to be a part of the PIC expansion project. The elevator was under-utilized but well maintained and very solid, allowing for a cost-effective renovation.
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Construction began in early July and has been progressing steadily since. The excavation and dirt work was completed in early August by local contractors, allowing for the concrete work to be completed in mid-August. Once the 3-ton mixer was installed, the building addition itself could begin. By mid-September, the 30’ x 50’ warehouse addition was completed, which allows for interior construction to hit high gear. In the next few weeks, the two new product legs will be installed, and the current unload system will be remodeled. Currently, the mixer scale hopper is being constructed and installed, and a conveyor to move the scaled product to the mixer is nearing completion. The next piece of equipment to arrive will be the new Roskamp triple roll mill. This state-of-the art roller mill will meet all customer expectations by supplying properly sized corn for these multiple diets. To finish the project,
a 4-bin load-out facility will be constructed on the north side, which will gravity-fill the delivery equipment. We are excited to begin manufacturing feed in this facility and expect to begin in November. A long-term agreement has been signed with PIC, which will use area corn, DDG, and various other ingredients in these diets. We will also be hiring a small group of area employees in the very near future to operate this facility. We look forward to operating this mill in Herreid and sharing in the community growth. With partners such as NCFE and PIC Inc, the future will be bright. Editor’s note: Dan Puffer became Dakotaland Feeds director of operations about a year ago. He is supervising Herreid mill renovations in addition to many other duties. s
New Hague Location Manager
New Lebanon Location Manager
Eric Hulm began his new position in October. Eric graduated from the North Dakota School of Science last spring, with a business degree that emphasizes marketing manager skills. Previous employment experience includes seed sales. Home is Strasburg, ND, where Eric grew up on the family farm. Eric, and his fiancée, Andrea Prante, are planning a 2010 wedding. s
Travis Jost began his new position in September. Travis is an SDSU and LATI graduate. After graduation he worked as a crop consultant in Nebraska and more recently was with another South Dakota cooperative. Travis and his wife, Jessica, will soon be moving from Redfield to Potter County. They have two daughters, Vivian, 4, and Olivia, 2. s
Reducing Weaning Stress
By Scott Kilber, Feed Specialist
It’s weaning time and I want to review a few recent strategies taken from the wise words and advice of Dakotaland Feeds Nutritional-Technical Specialist, Roxanne Knock, PhD. Please don’t hesitate to call your nearby Dakotaland Feeds location for further information. Weaning means stress. For calves to remain healthy through periods of stress, their immune system has to be functioning at a high level. One method of accomplishing this has been putting RangeLand™ Stress tubs in the creep feeder area for calves prior to weaning. Water is the most critical nutrient for starting calves. Calves that are not drinking are not eating,
and calves that are not drinking will be more likely to get sick. Feed grass hay/forage in bunk at first. This is a familiar feed to calves and is good to include in a starter diet because it is slowly digestible with little starch and unlikely to cause digestive upset. This is critical because the calves likely have quit eating for at least a short period of time, and high-starch diets will be far more likely to induce acidosis or bloat. Supplement selection will help keep the rumen healthy. Additionally, by providing necessary minerals and vitamins, the immune system will function well while calves are getting started on feed. Use the coupon below to make Stress Care tubs an even better value for reducing the stress of weaning. s
Red Flannel™ Dog Food
Check out our Red Flannel Prime dog food for your four-legged hunting friends. The formula provides energy, strength, and endurance. Its high-quality protein and amino acids help dogs recover after strenuous exercise, as do natural sources of glucosamine for joint health. Omega 3 & 6 fatty acids keep dogs looking vibrant and healthy, while high digestibility promotes small firm stools and easy cleanup. Red Flannel Adult and Country Acres Achiever are also great dog foods for average farm dogs and household pets.
Keep Your Calves Looking Good With Land O’Lakes® RangeLand™ HCP Stress Care Tubs Use this free-choice supplement for calves prior to and after stress, preweaning, and receiving situations. Stress Care Tubs contain Availa 4 for improving the health and performance of newly received or weaned calves. They are also formulated with Diamond V Yeast—for better feed palatability, more consistent feed intake, and better digestibility to help make nutrients more available.
Just In Time For Harvest: Westfield Augers. Huge selection. Great prices. New & Used Available.
✁
Save $5 on each RangeLand™ HCP Stress Care Tub you purchase now through November 30, 2009.
— $5 Off — Purchases must be made through North Central Farmers Elevator to qualify for $5 off per tub. Must present coupon at time of purchase. Limit 5 tubs per coupon. Expires November 30, 2009. Not valid on any other purchase. No cash value.
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Fall Agronomy To-Dos
By Matt Christopherson, Agronomy Marketing Manager, and Lane Mielke, Sales Manager It’s soil sampling time. As soon as possible, get your acres scheduled for their annual soil tests. We are expecting a narrow fall scheduling window because of what could be another extended harvest season, so please call now. The same goes for the doubleshot Horsch Anderson system—call immediately to get on the list. We’ll need all your information ahead of time for proper application work. We are running five rigs across the trade territory, but as successful as doubleshot has become, timely signups are essential.
Seed sales
Seed evaluation and sales are well underway. We’re looking forward to announcing test plot results. Along with our current lineup—Dekalb,® Asgrow,® NK, and Croplan Genetics®—we are adding Mycogen® and Mustang seed to our portfolio. Seed costs, at first glance, seem high. But no other input provides such a return on investment. However to get full value, it’s imperative to position the right hybrids and varieties in your fields. That can be the most yield-limiting factor out there—the wrong seed on the right ground. So we urge you to work closely with your local agronomist as you finalize seed selection.
Glyphosate market
We have really seen volatility in this market, with prices the lowest they’ve been in several years. There’s a lot of talk about glyphosate and saving the most money possible. Obviously, it’s important to get the most per-acre value you can for all your inputs. We remind you to not spend too much time in search of saving cents per acre. Time spent working with your local agronomists at saving dollars per acre is time—and money—more wisely spent.
More time, less volatility
The past few years, with the volatile swings throughout input markets, we’ve sometimes had to make some rushed agronomy decisions. But across the marketplace this year, we hope price swings have calmed down and availability appears stable. So take the time you need to make wise input decisions, while still taking advantage of early program and payment plans. While we always like early seed sales, for instance, more important to us is you making the right seed selections. Additionally, get further value with your input purchases by using our new Burgundy and Gold Program. Details are on the next page. Take your time and ask us questions. We look forward to working with you as we prepare for 2010 planting. s
NCFE Agronomy Sales
No payment due until Monday, Jan. 4 on: • Applied fertilizer products • Applied chemicals • Fall application fees
NCFE Agronomy Department Matt Christopherson: Marketing Manager, 380-1238 or 426-6834 Lane Mielke: Sales Manager, 380-4674 or 426-6839 Rick Arneson: Warner area agronomist, 216-1651 Bob Volk: Java/Herreid/Pollock area agronomist, 216-0086 Brent Neiger: Ipswich area agronomist, 216-4820 Tim Borge: Wecota/Onaka area agronomist, 380-9749 Greg Volk: Hague/Herreid/Pollock area agronomist, 380-5430 Justin North: Leola/Bowdle area agronomist, 216-6684 Jesse Frost: Lebanon area agronomist, 216-7824 Colby Tolk: Warner/Northville area agronomist, 216-6060 Curtis Jandel: Precision Ag Manager, 216-7138
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Why A.S.K.? New to NCFE for fall 2009 is the A.S.K.® fertility recommendation program. Gone are the days when blanket advice and applications of only the three primary nutrients are made. Today, prescription fertilizer recommendations will best optimize crop production management. A.S.K.—Agrintelligence Soil Knowledge—is our solution for custom-prescribing a full fertility program, based on your current fertility and production strategies. Proprietary A.S.K. fertilizer blends have averaged 5-10 bu/a better corn, 3.5 bu/a better soybeans, and 4-5 bu/a better wheat yields over conventional fertilizer blends. These are four-year averages from across the Corn Belt and Great Plains.
It all begins with—what else—soil sampling. Using conventional or composite/zone-type testing, A.S.K. will use the soil results to develop your own proprietary prescription blend. It will be based not only on nutrient levels but also on soil chemistry and biology. The research is overwhelming: new fertilizer formulations like this enhance fertilizer nutrient availability, efficiency, and yield response. We want to emphasize that we are not rolling out one more program to generate sales—we’re offering it because we firmly believe in its value. Our aim is that all your nutrient dollars be invested more efficiently, more wisely, and with what we anticipate is greater ROI value. s
Precision Ag Manager Curtis Jandel began his new position at NCFE in September. Having worked in the agronomy field for over 10 years, Curtis is prepared to handle whatever challenges come his way on the job. He also has had experience with AMS equipment over the past three years, making him a perfect fit for his new position. Curtis makes his home in Redfield, SD and enjoys hunting when he isn’t serving NCFE customers. s
Burgundy & Gold Program
Qualifications for the Burgundy and Gold Program are based on seed, chemical, and fertilizer purchases from NCFE.
Burgundy Option
Receive 1% back on your 2nd highest volume purchased and 2% on your 3rd highest volume purchased, with the rebate check issued in the fall of 2010. Example: Highest volume purchase: seed—$125,000 Second highest volume purchase: fertilizer—$100,000 x 1% = $1000 Third highest volume purchase: chemical—$50,000 x 2% = $1000 Total rebate check: $2000
Gold Option
Receive 1% on your 2nd highest volume purchased and 4% on your 3rd highest volume purchased, with the 4% limited to your 2009/2010 season purchases of Precision Ag Products and/or programs and soybean seed treatments (Warden CZ, Trilex 6000 and Cruiser Max). The check will be issued in the fall of 2010. Example: Highest volume purchase: seed—$125,000 Second highest volume purchase: fertilizer—$100,000 x 1% = $1000 Third highest volume purchase: chemical—$50,000 x 4% = $2000 Total Trilex 6000 purchases: $2000 Total Precision Ag purchases: $2000 Total rebate: $3000
SIGNUP FOR EITHER OF THESE PROGRAMS IS REQUIRED BY JANUARY 1, 2010. CONTACT A MEMBER OF THE AGRONOMY TEAM TO SIGN THE REQUIRED PAPERWORK. s
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DIRECTORY Ipswich . . . . . . . . . . . . . . . 605-426-6021 Toll-Free . . . . . . . . . . . . . . 800-658-3353 Auto Center . . . . . . . . . . . 605-426-6782 Chemical Shed . . . . . . . . . 605-426-6999 Farm Store . . . . . . . . . . . . 605-426-6163
PO Box 366 Ipswich, SD 57451
Farm Store Toll-Free . . . . . 877-232-4692 Bowdle . . . . . . . . . . . . . . . 605-285-6533 Toll-Free . . . . . . . . . . . . . . 800-584-9286 Petroleum . . . . . . . . . . . . 605-285-6570 Craven . . . . . . . . . . . . . . . . 605-426-6591 Fertilizer . . . . . . . . . . . . . . 605-426-6535 Hague, ND . . . . . . . . . . . . . 701-336-4673 Herreid . . . . . . . . . . . . . . . 605-437-2744 Toll-Free . . . . . . . . . . . . . . 888-437-2744 Petroleum . . . . . . . . . . . . 605-437-2415 Java . . . . . . . . . . . . . . . . . . 605-649-6291 Petroleum . . . . . . . . . . . . 605-649-6241 Lebanon . . . . . . . . . . . . . . . 605-768-9465 Leola . . . . . . . . . . . . . . . . . 605-439-3137 Petroleum . . . . . . . . . . . . 605-439-3147 Sun Terminal . . . . . . . . . . . 605-426-6843 Northville . . . . . . . . . . . . . 605-887-3441 Onaka . . . . . . . . . . . . . . . . 605-447-5803 Pollock . . . . . . . . . . . . . . . . 605-889-2321 Warner Elevator . . . . . . . . 605-225-8247 Petroleum . . . . . . . . . . . . 605-225-9608 Wecota . . . . . . . . . . . . . . . 605-324-3200
BOARD of DIRECTORS Richard Osterday – Java, President Larry Vetch – Onaka, Vice-President Quentin Larson – Pollock, Secretary Ken Olson, Jr. – Turton Lynn Deibert – Herreid Bryan Bauer – Mina Dale Gill – Java Dave Heidenreich – Wecota Gerald Lacher – Lebanon Derek Merkel – Leola Phillip Shanley – Warner Larry Olson – Ipswich
Our Mission: To be an agricultural leader in serving our customers’ needs with integrity, innovation, and profitability.
Following Wheat Market Rallies By JEREMY VANDER VORST, Benson-Quinn Branch Manager
An extremely large SD wheat harvest caused prices to fall rapidly. With harvest wrapped up, I expect the wheat market to try and rally over the next few weeks. Take advantage of rallies by making sales, as wheat supplies are abundant globally. Rallies will be met with aggressive selling due to the large quantity of unpriced inventory. Producers should look at purchasing call options on wheat they need to sell to make room for row crops. Currently, May 550 spring wheat call options were trading at 33¢ per bushel. Many producers are expecting a large soybean crop. As of Sept. 11, USDA pegged the average U.S. soybean yield at 42.3 bu./a, nearly a 3 bu. increase from last year. Ending U.S. soybean stocks are projected at 220 million bu., a level that is still making trade nervous. If South America experiences production problems, we could see a substantial winter run-up in prices. China is still the market wildcard, as they continue to purchase U.S. soybeans. If this buying trend continues, I would expect the market to stay well-supported. Currently, the soybean market is telling us to sell at harvest, as there is little market carry. November futures were trading at $9.29 and
July beans were at $9.44. This is a 15¢ carry, which is historically low. On the other hand, the corn market has a 31¢ carry from December to July. The corn market has been attempting to get a grip on U.S. crop size. In the latest crop report, USDA estimated a 161.9 bu./a crop, which would be record large. Many expect this number to grow over the next few weeks with normal weather. With the recent drop in prices, ethanol margins have greatly improved, causing USDA to increase corn use for ethanol. Lower prices have increased our exports and corn use for feed. Producers who have unpriced inventory should try and plan a strategy to market their corn before harvest. Some producers are selling corn now for harvest delivery and will re-own corn after harvest with call options or futures contracts. A May $3.40 call option was trading for 30¢ per bushel, relatively cheap compared to the cost of storage and interest. With the drop in corn prices, livestock margins improved. Many feeders have had an opportunity to lock in profits for future months. I expect feed costs to decrease as we near harvest, helping margins and feeder cattle prices. Prices are still sluggish due to the weak economy and poor demand. I am optimistic on prices over the next few months. Please call or stop by the West Bowdle terminal with questions. My number is 877-893-0800. s
