Fall 2016

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GENE ERPELDING Chief Executive Officer

A s we move into the fall of 2016 and the growing season comes to an end, we will all be adding up the bushels coming off of the acre. Bushels are what we farm for; calculating gross income with an optimistic hope that we will end the year with a positive cash flow. Moving forward, we are supporting you with new tools that will monitor your yield by variety, soil type and fertility practice on each farm. As this article goes to print, we are also rolling out an app that you can download and receive your weights and grades as soon as the truck leaves our scale. This app will also give you bushels delivered and applied to contracts in real time. The world of technology is moving to the farm, and Allied is partnered to bring you real time information that identifies best varieties for your soils with best fertility practices as the combine rolls up and down the field. Talk to your local agronomist and make sure you are partnered with us and taking advantage of our offerings through the R7® program or Climate Corp as you prepare for soybean and corn harvest.

Letter From the

CEO ALLIED COMPANIES 1

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Going forward, we expect rapid change in technologies tied around the acre. It’s about maximizing the return off of each and every acre you farm. Industry consolidation is front and center in agriculture (Dow® / Dupont® and Bayer / Monsanto and ChemChina / Syngenta®). There is no standing still if you are going to survive what is coming at us. We look for product bundling around the new merged organizations that will tie seed to crop protection through traits. As companies align seed traits to their crop protection products wrapped around best management practices, Allied will work with you to make sure it fits the way you farm. The next big wave is fertility and sustainability of nutrients applied to the acre. Look for new product offerings tied to nutrient management.

There are studies identifying that up to 50 percent of nitrogen applied to the corn acre is lost to the environment. Allied will work with you to improve nutrient efficiency, soil health and productivity. This will protect your freedom to farm by mitigating regulation and market access constraints. We want to improve our stewardship of the land, and engage with food companies to create a transparent food production to consumer message. Sustainable agriculture is a journey that we must all engage in and work on to send a better message to the consumer. We care about the land, for it has been our “bread and butter”. We care for the field as we care for the environment and the lives of future generations. Our commitment to sustainable agriculture is critical to the success of tomorrow. With the crash in commodity prices, I have been looking for opportunities in the market that will create diversity on the farm. We will communicate through our management staff of new opportunities as we tie them down with end users. The Panama Canal has been dredged and enlarged to allow the largest of vessels to navigate through the Canal, creating more efficient routes to the Pacific Rim and other Asian markets. This may change how grain moves out of the United States. We no longer have to go to the Pacific Northwest by rail to load the large vessels, they can now be loaded out of the Gulf of Mexico. Pulling excess domestic production from the southern Corn Belt rather than just the northern Corn Belt may have some positive impact on basis for us over time. Allied will continue to provide our customers with quality branded products through a knowledgeable sales staff. Employees will be trained and understand product qualities that make a positive difference on your farm. We will all work hard to earn your business! ALLIED COMPANIES Fall 2016 2

President’s

Report A s the growing season comes to a close, the crops are looking good and there is a lot of potential for a successful harvest season. There are just a few things to keep in mind. The most important thing for growers to remember is to keep in touch with your agronomist. They can provide crop monitoring to ensure any issues are taken care of promptly. Whether it’s an aphid problem or something else, your local agronomist will provide you with advice and solutions. Speaking with them will help ensure all of your hard work throughout the growing season pays off.

During harvest season, Allied Agronomy offers trucking services to growers. If that is something you’re interested in, contact your agronomist. We can also help with burn down and fall spreading. As your local cooperative, we are always looking for ways to serve growers during the busy harvest season. Testing your soil will



determine its health and help you decide

which crops will have

At this time of year, consider having your soil tested. If you have not done this in a year or two, it is highly recommended you get it tested for next season. Testing your soil will determine its health and help you decide which crops will have the greatest success.

KURT BRANDENBURG Agronomy Board President

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the greatest success.

Remember to check out the Answer Plot. Tours will begin shortly. Ask your agronomist or visit our website (alliedag. com) for more details.

As always, if you have any questions or concerns, your agronomists and other Allied employees are more than willing to help. If for some reason they don’t know the answer right away, they will always work to find out and get back to you. Thank you to our patrons for allowing us to serve you. This is your company, and we want to provide you the best service possible. Let us know if there is anything we can do to improve.

Advantages ® of Cenex Premium Diesel Fuels Y

ou already know from personal experience that Cenex® Premium Diesel Fuels provide performance advantages over regular #2 diesel fuel, including more power, better fuel economy and lower maintenance costs. You’ll be happy to hear that your premium diesel fuel brand is now better than ever. It’s been enhanced to meet the tough demands of today’s engine technologies and ensure consistent performance in all engines, both on and off the road. Cenex Premium Diesel Fuel is now the only diesel fuel containing a special additive to help prevent fouling issues – a problem experienced in modernized diesel engines (2007 models and newer) built to meet EPA emission standards. In those engines, increased pressure and temperatures can cause diesel fuel to “cook,” leading to injector/ filter problems, reduced efficiency, costly repairs and even engine failures. ®

Our premium diesel fuels are also designed to optimize performance in existing engine technologies. In fact, no other diesel fuel on the market contains a more complete, balanced and quality additive package. We’ve already made the switch to the enhanced fuels for all our Cenex Roadmaster XL® Premium Highway Diesel Fuel and Ruby Fieldmaster® Soy-Enhanced Premium Diesel Fuel customers. We’re committed to using our knowledge of fuel and engines to continue helping you keep your vehicles operating as efficiently as possible. Thank you for your business!

Allied Agronomy

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s I write this, it’s mid-August and small grain harvest should be wrapping up this week. Yields are good for the most part, with quality varying quite a bit. Some timely rains in late July and early August have the row crops showing some tremendous yield potential. Fungicide applications should show a good return on investment this

year. Fertilizer prices are at the lowest levels we’ve seen in years. If you’re planning on doing any fall fertilizer applications, give your local Allied sales agronomist a call. We will soil test your fields and give you the best recommendation for a solid fertility program for your farm. I’d like to thank all of our patrons for your business in the past and look forward to working with you in the future.

DANA GRAMLOW

Sales Agronomist, Ypsilanti

JAMES THORTON

Energy Board Manager

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THE

IMPORTANCE OF DATA

As anticipation for harvest draws near, we are excited to see what yields we have in the fields. Across the territory of Allied Agronomy, crops look good with the exception of a few hail events we weren’t able to escape from. On the price side of the equation, things are back down this fall. We had many trials going to see what we could do to push yields with positive economic returns to increase bottom lines. Talk with any of our agronomy staff members and we would be happy to go over the results once harvest data comes in. Harvest data we collect and test, followed by local Answer Plots® and data driven from the Answer Plots®, helps us make better management decisions each year. There are tools being refined that will impact decisions and timing of products we use to get the best return on investment. There are always new things being tried and tested in the field of agriculture and we will see some new technology again next spring. With what looks to be favorable yields in our fields, we are still battling the problems of weeds that are getting harder and harder to control. With Xtend™ now being approved, we hope this tool will allow

us to again regain the success of spraying fields and controlling some of these troublesome weeds. There are a lot of questions revolving around Xtend™ soybeans, so please ask our staff of any questions you many have. Another management tool that will aid in the decision making process for next year is capturing good and accurate data in the combine this harvest. This data must be in a useable format for you, yourself to run the numbers on, as well as your agronomist, to see how things did on your acre to plan best for next year. Climate has a very user-friendly system that can capture harvest and planting data to provide real-time insights into each one of your fields at a reasonable price point. Climate data coupled with the R7® Tool from WinField® will help make some of those tough decisions easier. All of us at Allied Agronomy want to say thank you to each and every one of our customers for their support. We wish you a safe and prosperous harvest and look forward to sharing your success and building on next years’ as well.

JARED NITSCHKE

Southern Territory General Manager

f o s e Tim

CHANGE E conomic conditions occurring in the agriculture industry today will guarantee change. Some good and some bad, but whatever the outcome our landscape will change rapidly. Merger and acquisitions continue at all levels of our industry. Chemical manufacturing will go from six to three or four in the next 12 months. Distribution companies continue to consolidate as some are looking to eliminate local retail for national retail chains. Local retailers will need to look at joining forces to hold and grow their position in the market. Unfortunately the agriculture industry will lose some farmers as well. Change is here. The old adage is that if a wheel is not broken, don’t fix it. Well, income statements indicate the wheel is broken, but we don’t need to crash. We have to be proactive. Tendency is to stop investing into the newest technologies and opt for cheap genetics in buying seed. The reality is that adapting technologies and placing seed varieties to maximize production efficiencies is a must. Consequently, identifying segments of the field that are less than desirable and then managing them to minimize the loss of that area will only help the income statement. At Allied we believe in those concepts, therefore we have invested in programs like R7® by Winfield. The R7 platform allows us to integrate new technologies to allow our customer the ability to manage their field as the food factory it is, quantifying acres that are economically productive and acres that aren’t. We are able to put the economics to regions of the field, and to monitor ®

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JASON VOLLMER

Northern Territory General Manager

the progress. This helps us to know where to cut our losses in areas and invest extra dollars in the other areas that yield a positive return. Even above that we need to address the problem correctly. With the help of scouting and satellite images, we can diagnose problematic regions and address them earlier than ever before. The technological capabilities at our disposal are continuing to increase at a rapid speed. The question is how fast grower adaptation will be. Next year is sure to be challenging. As field planning starts, Allied cherishes our partnership with the growers. The agronomists have a plethora of data to assist in variety placement, as well as nutrient needs and pesticide options specific to field and zones. Customizing seed selection and zone placement of inputs will be vital. ALLIED AGRONOMY Fall 2016 8

Meet Nathan Elhard 1

Meet

Mason Keefauver 1

WHAT IS YOUR POSITION AND WHEN DID YOU START?

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My position with Allied Agronomy is sales agronomist. I am currently based out of Sheyenne, North Dakota. I started right after my graduation from North Dakota State University in the middle of May.

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TELL US ABOUT YOUR PROFESSIONAL BACKGROUND PRIOR TO STARTING AT ALLIED. I started with Allied as a graduate just out of college, but I was able to gain some great experience as an intern with Consumers Cooperative out of Litchfield, MN and as a sales intern with WinField® covering western Minnesota.

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WHAT ARE YOU MOST EXCITED ABOUT IN YOUR NEW CAREER? I am most excited about meeting people in the area and also furthering my knowledge of both agronomy and sales in a place with a wide variety of crops and production practices.

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I started at Allied Agronomy on May 16, 2016 as the Sales Agronomist/Site Manager in Kulm.

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WHAT ARE YOU MOST EXCITED ABOUT IN YOUR NEW CAREER? Starting out here at Allied I am most excited about finding the best options for each individual grower while getting to know each of them and their operations better. I am also excited to work with the staff here.

IF YOU COULD OFFER ONE PIECE OF ADVICE TO PATRONS RIGHT NOW, WHAT WOULD THAT BE? My advice would be to utilize the new technologies that are becoming available within agriculture. There are many different programs and technologies out there that can make us both more and more efficient, which can help reduce costs and raise profits.

TELL US ABOUT YOUR PROFESSIONAL BACKGROUND PRIOR TO STARTING AT ALLIED. I recently graduated from NDSU with a degree in Crop and Weed Science. In the summer of 2015 I did a research internship with BASF near Fargo. Prior to school, I worked at home on our farm where we have cattle and raise mostly corn and soybeans.

IF YOU COULD OFFER ONE PIECE OF ADVICE TO PATRONS RIGHT NOW, WHAT WOULD THAT BE? A piece of advice that I would offer is to stay progressive when it comes to the crop each and every season. Through the use of new agricultural technology, seed and management practices, we can work together to achieve better yields. There are many resources including agronomists, seed specialists and Ag technology individuals available, so never be afraid to ask questions about how we can help benefit your operation.

WHAT IS YOUR POSITION AND WHEN DID YOU START?

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TELL US A LITTLE BIT ABOUT YOUR FAMILY AND WHAT YOU LIKE TO DO IN YOUR SPARE TIME. Along with my parents, Mark and Shar, I have three older brothers: Charles, Ben and Andrew. My parents live on the farm; Ben and Andrew both have houses in town and Charles lives in Fargo. In my spare time I enjoy hunting, fishing, playing or watching sports and spending time with friends and family.

TELL US A LITTLE BIT ABOUT YOUR FAMILY AND WHAT YOU LIKE TO DO IN YOUR SPARE TIME. I grew up in central Minnesota on a lake with my two siblings (my brother Justice, 21, and my sister Carson, 18) and my parents (Phil and Correne). In my free time I enjoy fishing and hunting waterfowl with my black Labrador, Coal. ALLIED AGRONOMY Fall 2016 10

p i h s r a l o h c S t n e i p i c e R 2016

Meet

Morgan Hanson 1

WHAT IS YOUR POSITION AND WHEN DID YOU START?

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I am a sales agronomist for Allied Ag, out of the Barlow office. I started this year on August 15.

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M

eet Tameka Steinwand, a 2016 Ellendale high school graduate, and a recipient of a $1,000 Allied scholarship. Steinwand is the daughter of Marlon and Colleen Steinwand from Edgeley, North Dakota. Farming and ranching is a common career her neighbors and family participate in, therefore she has been blessed with the experiences of field and ranch work. Recently she has been job shadowing at a local veterinary clinic where she has been introduced

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to surgeries, farm visits and clinical procedures. She believes rural communities promote stability, guidance and connection through family, friends and the animals we encounter. Tameka is determined to become employed in a rural veterinary clinic to assist in surgeries and extensive care of animals in need. She will be attending NDSU for veterinary technology and equine science.

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My one piece of advice to our patrons would be to ask questions. I may be new to Allied Ag, but I am not new to agronomy. I look forward to working with our patrons, alongside my team in order to assist in making sound agronomist decisions.

TELL US ABOUT YOUR PROFESSIONAL BACKGROUND PRIOR TO STARTING AT ALLIED. I have been around agriculture, specifically the agronomy side of it, my whole life and knew early on that this is what I wanted to do. In high school, I began scouting fields and soil sampling for growers around my hometown. I spent my summer before college working for JS Ag Consulting in Devils Lake. My first and second summers of college were spent working for WinField® Solutions, one summer in the western part of the state and the other in eastern North Dakota/western Minnesota. I graduated from NDSU with a Bachelor’s of Science degree in Crop and Weed Science in 2014. From there, I entered graduate school at NDSU where I earned my Master’s Degree in Plant Sciences. My thesis was a study on triallate (Far-Go) efficacy to suspected herbicide resistant wild oat in spring wheat.

WHAT ARE YOU MOST EXCITED ABOUT IN YOUR NEW CAREER? I am excited to take my learning experiences from my past positions and education from NDSU and combine them with my new expectations of this job in order to work with the growers in my territory. I am looking forward to working with a wide variety of crops and also getting to know my coworkers and new community members better.

IF YOU COULD OFFER ONE PIECE OF ADVICE TO PATRONS RIGHT NOW, WHAT WOULD THAT BE?

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TELL US A LITTLE BIT ABOUT YOUR FAMILY AND WHAT YOU LIKE TO DO IN YOUR SPARE TIME. My family hails from Webster, North Dakota, which is just north of Devils Lake. My dad, Jason, is a regional agronomist for WinField® Solutions in eastern North Dakota/northwest Minnesota and my mom, Leah, works part-time for the school district and fulltime keeping our family in line. I have three younger brothers. Cole is an aviation student at UND in the commercial aviation and unmanned aerial systems programs. Mason is a senior at Devils Lake High School and plans to attend NDSU in crop and weed science. Forrest is a sophomore at Devils Lake High and participates in basketball, track and clay target league. In my spare time you will most likely find me somewhere in the great outdoors. I love hunting ducks, geese, doves or deer, fishing/ ice fishing, shooting trap, skeet or sporting clays, as well as going camping and hiking. I also enjoy spending time with friends and family at NDSU Bison tailgating and football games, or at the lake just relaxing. ALLIED AGRONOMY Fall 2016 12

Company

PROFILE CREDIT POLICY

Effective January 1, 2012

1.

No Annual Fee: No Annual Fee will be charged.

2. Credit Approval: A credit department approved credit application is required before charges can be made to an open account. 3. Terms: Purchases made during the month are due in full when the customer’s credit limit is reached or by the 10th of the month following the month in which the transactions took place, whichever occurs first (such date shall be referred to as the “Due Date”). If an account balance has not been paid within 10 days after its Due Date, then such account will be deemed past due. 4. Past Due Accounts: Accounts deemed past due, pursuant to our credit policy, will be assessed a finance charge of 1.5% per month (18% Annual Percentage Rate) on all past due invoices. Allied Energy reserves the right to close a past due account to all future purchases and may demand immediate payment in full. 5. Payments: Payments will be applied first to unpaid finance charges, then to the remaining outstanding balance. 6. N.S.F. Checks: The maximum allowable fee will be assessed on each returned check/item. Collection action and/or prosecution action will be taken. 7. Collection: Allied Energy reserves the right to take collection action at the time after an account reaches past due status. Allied Energy is not bound by any notation of “paid in full” or otherwise that accompanies any payment if the payment is not for the total amount owed at that time. Any agreement for a lesser amount than what is owed must be expressly agreed to by Allied Energy in a written Agreement signed by Allied Energy CEO. 8. Prepayment: Customers choosing to prepay for their purchases may do so at any time. Cash will be placed on account on a dollar for dollar basis. Prepaying for item specific purchases may allow producers the opportunity to take advantage of a current pricing structure or discounts where applicable. Those producers who prepay for specific items understand prepay pricing is not held indefinitely, and prices are subject to expire at the end of Allied Energys’ fiscal year (August 31) or as noted on the bookings, or contract, whichever comes first. 9. Credit Cards: Credit Cards will only be accepted for payment of consumer purchases (non-agricultural purchases). 10. Budget Billing: Budget billing is available on home heating fuel. 11. Co-op local Cards: Co-op Local Cards can be used for fuel purchases at our cardtrol islands where accepted. Co-op Local Card terms are the same as our current Credit Policy. 12. Bulk Refined Fuels: Deliveries less than minimum amounts and non-scheduled deliveries after normal business hours may be subject to additional service charges. Out of gas deliveries (propane) may be subject to additional service charges. Unapproved or past due accounts are cash prior to delivery. 13. Collection Costs: The customer shall be liable for the payment of all our collection costs, court costs and attorney’s fees to pursue payment of your debt in the event that payment is not received when due. 14. PMSI (Crop Lien): By using your Allied Energy account, you grant Allied Energy a purchase money security interest (PMSI) in all product purchases through your account, in addition to any proceeds from it. The PMSI continues until the products are paid in full. 15. Account Disputes: Disputes must be reported to the main office (701-493-2266) located at 109 Industrial Park, Edgeley, ND 58433 by the 10th of the month following the transaction date. Our Company views credit as a privilege and not a right. This policy has been designed to protect Allied Energy and the customers we serve. The Allied Energy Board of Directors reserves the right to make changes to this policy at any time. Customers with an established account will be notified in writing of such changes at least 30 days prior to the effective date of the change. Allied Energy also reserves the right to delay enforcement of this policy without losing the right to enforce this policy. ALLIED ENERGY 13

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ALLIED ENERGY, AGRONOMY & GRAIN MAIN OFFICE 109 Industrial Park Suite #1 Edgeley, ND 58433 701-493-2680 CEO, Gene Erpelding 701-830-0115 [email protected] Controller, Heather Klein 701-493-1915 [email protected] Executive Assistant, Sonny Syversen 701-269-9701 [email protected] IT & Inventory Management, Amanda Janke 701-535-0384 [email protected] A/R & Collections, Shelly Anderson 701-493-1924 [email protected]

ALLIED ENERGY EDGELEY Allied Energy General Manager, James Thornton 701-840-1628 [email protected] C-Store 701-493-2211 NAPA, Doug Wald 701-493-2558 LP & Shop, Joe Weigel 701-493-1921 LP Delivery, LaVerne Anderson 701-709-0128 KULM Fuel/NAPA 701-647-2306 Shop, Josh 701-647-1967

A/P, Amy Carlson 701-493-1925 [email protected]

ALLIED AGRONOMY Southern Territory General Manager, Jared Nitschke 701-830-1911 [email protected] EDG ELEY 701-493-2268 Sales Agronomist, Jerad Cook 701-830-0806 KULM 701-647-2307 Sales Agronomist, Nathan Elhard 701-830-0730 JUD 701-685-2634 Sales Agronomist, Dallas Koplin 701-830-0238 GACKLE 701-493-1934 Sales Agronomist, Andrew Gegelman 701-659-1126 YPSILANTI Sales Agronomist, Dana Gramlow 701-830-9729 [email protected]

HR Manager, Duane Peterson 701-269-4546 [email protected] Office Assistant, Daphne Schlepp 701-493-1901 [email protected]

ALLIED ENERGY BOARD MEMBERS President - Jay Mathern Vice President - Blaine Lundgren Secretary - Bryon Thom Director - Brian Tjernlund Director - Brian Schlecht Director - Dean Land

Director - Jim Holth Director - Ron Bjur Director - Steve Moch Director - Kurt Brandenburg Director - Neil Veen Advisoree - Chris Zenker

ALLIED AGRONOMY BOARD MEMBERS President - Kurt Brandenburg Vice President - Nick Mathern Secretary - Ron Bjur Director - Jay Mathern

Allied Agronomy Equipment/ Operations Manager Gary Olson 701-952-4494 [email protected] JAMESTOWN 701-952-4512 Sales Agronomist, Scott Gust 701-830-2113 Sales Agronomist, Alex McInnes 701-368-9173 Precision Ag, Luke Ziegelman 701-830-0300 Northern Territory General Manager, Jason Vollmer 701-650-7371 BARLOW/BREMEN 701-984-2617 Operations Manager, Jim Johnson 701-650-7142 Sales Agronomist, Trygg Olson 701-652-5021 SHEYENNE 701-996-2231 Sales Agronomist, Mason Keefauver 701-830-0223

ALLIED GRAIN CEO, Gene Erpelding 701-830-0115 [email protected] BARLOW Location Manager, Dusty Hinrichs 701-984-2617

YPSILANTI Location Manager, Cameron Hofland 701-269-8074 Abbey Fick 701-489-3379

Director - Bryon Thom Director - Tony Johannesen Director - Doug Schmid

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Presorted Standard U.S. Postage Paid Presort Plus, LLC 109 Industrial Park Edgeley, ND 58433 701-493-2211

Have a safe and bountiful harvest season, from all of us at Allied!