Grain Talk Simple Storage Service
Grain Talk
Volume 10, No. 1 June 2013
AGMARK MISSION STATEMENT: To be a recognized leader in the grain industry, providing long term grain marketing solutions for our customers while building a financially strong and stable company.
118 West Main, Beloit, KS
Owner Elevators:
Toll Free: 888-848-9979
Concordia Terminal(West), Asherville, Beloit, Cawker City, Clay Center, Concordia (East), Denmark, Glen Elder, Hunter, Jamestown, Jewell, Kackley, Leonardville, Miltonvale, Lincoln, Randall, Scottsville, Solomon Rapids, Tipton, Vesper, Westfall.
www.agmarkllc.com
FACILITY IMPROVEMENTS AgMark LLC’s owners continue to invest in our North Central Kansas grain handling system. The new projects completed this past year: Concordia Terminal – The addition of four 650,000 bu. steel bins and high speed material transfer system built from the investment of Cloud County Coop Glen Elder – (downtown) – The addition of a second concrete bin of 670,000 bushels, two receiving pits and legs at 25,000 bu. per hour each, a new scale house and office West of the downtown facility Jewell – The addition of two 300,000 bu. concrete bins, a receiving pit and leg at 15,000 bu. per hour. MAGNETIC CARDS FOR TRUCK ID We now have four locations equipped with card scanners to read the white 2” x 3” chip imbedded card to identify your truck load of grain. The locations that these cards can be used interchangeably include: The Concordia Terminal (West), Concordia East, Jewell and Glen Elder. These cards are pre-programmed with a number and can be used unlimited throughout harvest at any of these facilities. DEFERRED PAYMENT INTEREST RATE The deferred payment interest rate is currently 1% per year on all new “Installment Sale of Grain” contracts to be paid in January of 2014. PATRONAGE ON GRAIN DELIVERED TO CONCORDIA TERMINAL (WEST) We have received questions regarding the grain patronage process for grain delivered to the AgMark Terminal (West facility). As owners of AgMark LLC, Farmway, Cloud County and Randall Coops have the ability to determine how they allocate patronage to the customers that deliver grain to this facility. The patronage rate will be different for each cooperative and past patronage rates are not indicative of future patronage rates into this facility. Please consult the management of each one of these owner cooperative if you have questions on patronage.
We Have Moved: Phone: (785) 738-9641
Like us on Facebook Follow us on Twitter
NEW TRADING HOURS ON CME FUTURES EXCHANGE On Monday, April 8th, the Chicago Mercantile Exchange (CME) changed the hours for grain futures trading from the 21 hours per day Sunday-Friday schedule. The new hours that the CME will trade are as follows: Monday through Friday, open at 8:30 a.m. and close at 1:15 p.m., Sunday through Thursday open at 7:00 p.m. and close at 7:45 a.m. This change has not affected AgMark’s grain buying procedures. AgMark will price grain from 7:30 a.m. until 5:00 p.m. Monday through Friday. During very volatile market situations, AgMark may take protection if necessary to manage company risk. We would prefer that our customers market their grain during futures trading hours as it will give AgMark the chance to hedge it immediately and limit risk exposure. HARVEST REMINDERS In order for harvest to go as smooth as possible, it is important to let us know of any farm account changes or additions right away. Also, it is always a HIGHLY recommended practice for our customers to check their tickets promptly as they finish harvest and before tickets are split into customer accounts (landlords & producers). AgMark will not be responsible for incorrect names on a ticket if they are split without checking them first. When your tickets are checked please let us know immediately to fill your existing contracts so payment can be made promptly. Our practice has always been to fill the oldest contract first. DIRECT DEPOSIT AVAILABLE ON GRAIN CHECKS The list keeps growing of customers who are seeing the value of this timely method to put cash in the bank. Your grain sales proceeds can be deposited directly into the bank account of your choice and you can still receive written confirmation of the settlement by mail. This will eliminate the problem of checks being lost or delayed in the mail and trips to the elevator and bank. Actual paper checks will still be available and are the only option for accounts with liens against them. If you are interested in the direct deposit option, please complete the “Electronic Funds Transfer Authorization Agreement” at any of our member elevator locations or administrative office in Beloit. If you have any questions; please don’t hesitate to call the Beloit office at 888-848-9979.
You can now reach ANY member of the AgMark Marketing Team with ONE phone number! AgMark now has the ability to connect you to any member of our marketing team, no matter which office they work in, when you dial our toll free number at 888-848-9979. If you need to reach David Pfizenmaier in Clay Center, or Nick Hansen and Carrie Williams in Concordia, or Eric Hilt and Mark Hafliger in Beloit, you can reach them all by dialing 888-848-9979. This will help AgMark better assist our customers when someone is out of the office.
AGMARK IS MOBILE!! Have access to our CASH BIDS, LOCATION & HARVEST INFORMATION and MUCH MORE when using our Mobile Website! From the internet browser on your mobile device enter http://mobile.agmarkllc.com this will bring up our mobile site. You can also access it by going to our website at www.agmarkllc.com and clicking on the “mobile site” button at the bottom of the home page. Once the mobile site is open on your device you can save it as a shortcut on your homepage. Then, the next time you look us up we are just one easy click away. MARKETS ON CELL With AgMark’s “Markets on Cell” you can stay on top of the markets, whenever you want, wherever you can get cellular service. An additional feature is that we can send you important time sensitive information via text message. Simply sign up by calling the toll free AgMark customer service number at 888-848-9979. The best part of the deal is the service is free to all customers who market grain with AgMark. TRUCKS IN THE FIELD AT HARVEST AgMark will again have a supply of trucks for our customers who may need assistance with moving wheat at harvest. To manage the uncertain demand for these trucks, we ask our customers to contact a grain originator as soon as possible if you need this service since trucks will be allocated on a first-come, first-serve basis. Priority will also be given to grain that is contracted with AgMark verses grain coming in for storage. In years past we have been able to accommodate all our customer’s requests and will work to accomplish this in 2013. MANAGE RISK WITH CROP INSURANCE Producers every year take a look at their risk management plan. The decision to buy Federal Crop Insurance is a decision that most producers don’t even have to think about. Most feel like crop insurance is a necessary tool to help manage their operation’s risk. A harder question for some is should I buy hail insurance. If you have bought crop insurance you are already covered for hail losses. So why do so many people buy hail insurance? To answer that question we first need to evaluate how much potential risk is there and then each individual must decide if they are comfortable taking that risk.
Let’s take a look at the wheat crop that is currently in the field. To do this you will have to make some educated guesses. You have to come up with a value of what that crop is currently worth. You have to determine if there is a hail storm, how much do you stand to lose? Most producers in Kansas buy 70% or 75% coverage on their MPCI (Multi-Peril Crop Insurance) policy. For this example, let’s look at a wheat operation that has 75% insurance. If your APH is 50 bu. /acre then a 75% level insurance policy will start its coverage at 37.5 bu. /acre. That is a very important number to know. That is how many bushels you are policy is guarantying. The next step is a little more difficult. You need to estimate what the potential yield for this year’s crop could be. Is it a year where we have the potential to have a 60 bu. average or is it looking like a 45 bu. yield will catch most of it? If you don’t really have a good idea, then take a look at a couple of different yield scenarios. For our calculations we are going to estimate that the crop could have a 60 bu. average. This means that you could have a loss of 22.5 bushels/acre (60 – 37.5 MPCI Coverage) before your MPCI policy starts paying for a loss. If you could have sold that wheat you lost for $7.00 per bushel then you have just lost $157.50 per acre (22.5 bu. x $7.00). The next question is do you feel comfortable with taking that risk or do you want to buy some hail insurance to cover that potential loss if you get hail? If you are not comfortable with taking that big of a risk, hail insurance can be a very affordable way to cover the loss. That is why a lot of producers look at buying hail coverage. It is to cover those bushels that aren’t covered by your MPCI policy. Hail insurance is also very attractive for those producers who have elected to have enterprise units for their MPCI policy. If there is hail damage it will be assessed on a field by field basis. The final question you have to answer after deciding to purchase hail insurance is which policy is going to cover my situation the best. There are several different policies that pay out differently so it is very important to look at how each policy is going to react. It is also important to know that hail policies are not like MPCI policies. The cost and structure of the policy can vary from company to company. AgMark Crop Agents have the knowledge, tools, and very competitive hail rates to assist you with this whole process so please give us a call. We can help you determine the right policies that fit your needs and manage you’re risk. Don’t wait until the last minute to try and decide what you want. Come in and go over all of it now.
THANK YOU FOR YOUR BUSINESS AND HAVE A SAFE HARVEST!
Beloit, KS 67420 PO Box 444 AgMark LLC
Volume 10, No. 1 June 2013
AGMARK MISSION STATEMENT: To be a recognized leader in the grain industry, providing long term grain marketing solutions for our customers while building a financially strong and stable company.
118 West Main, Beloit, KS
Owner Elevators:
Toll Free: 888-848-9979
Concordia Terminal(West), Asherville, Beloit, Cawker City, Clay Center, Concordia (East), Denmark, Glen Elder, Hunter, Jamestown, Jewell, Kackley, Leonardville, Miltonvale, Lincoln, Randall, Scottsville, Solomon Rapids, Tipton, Vesper, Westfall.
www.agmarkllc.com
FACILITY IMPROVEMENTS AgMark LLC’s owners continue to invest in our North Central Kansas grain handling system. The new projects completed this past year: Concordia Terminal – The addition of four 650,000 bu. steel bins and high speed material transfer system built from the investment of Cloud County Coop Glen Elder – (downtown) – The addition of a second concrete bin of 670,000 bushels, two receiving pits and legs at 25,000 bu. per hour each, a new scale house and office West of the downtown facility Jewell – The addition of two 300,000 bu. concrete bins, a receiving pit and leg at 15,000 bu. per hour. MAGNETIC CARDS FOR TRUCK ID We now have four locations equipped with card scanners to read the white 2” x 3” chip imbedded card to identify your truck load of grain. The locations that these cards can be used interchangeably include: The Concordia Terminal (West), Concordia East, Jewell and Glen Elder. These cards are pre-programmed with a number and can be used unlimited throughout harvest at any of these facilities. DEFERRED PAYMENT INTEREST RATE The deferred payment interest rate is currently 1% per year on all new “Installment Sale of Grain” contracts to be paid in January of 2014. PATRONAGE ON GRAIN DELIVERED TO CONCORDIA TERMINAL (WEST) We have received questions regarding the grain patronage process for grain delivered to the AgMark Terminal (West facility). As owners of AgMark LLC, Farmway, Cloud County and Randall Coops have the ability to determine how they allocate patronage to the customers that deliver grain to this facility. The patronage rate will be different for each cooperative and past patronage rates are not indicative of future patronage rates into this facility. Please consult the management of each one of these owner cooperative if you have questions on patronage.
We Have Moved: Phone: (785) 738-9641
Like us on Facebook Follow us on Twitter
NEW TRADING HOURS ON CME FUTURES EXCHANGE On Monday, April 8th, the Chicago Mercantile Exchange (CME) changed the hours for grain futures trading from the 21 hours per day Sunday-Friday schedule. The new hours that the CME will trade are as follows: Monday through Friday, open at 8:30 a.m. and close at 1:15 p.m., Sunday through Thursday open at 7:00 p.m. and close at 7:45 a.m. This change has not affected AgMark’s grain buying procedures. AgMark will price grain from 7:30 a.m. until 5:00 p.m. Monday through Friday. During very volatile market situations, AgMark may take protection if necessary to manage company risk. We would prefer that our customers market their grain during futures trading hours as it will give AgMark the chance to hedge it immediately and limit risk exposure. HARVEST REMINDERS In order for harvest to go as smooth as possible, it is important to let us know of any farm account changes or additions right away. Also, it is always a HIGHLY recommended practice for our customers to check their tickets promptly as they finish harvest and before tickets are split into customer accounts (landlords & producers). AgMark will not be responsible for incorrect names on a ticket if they are split without checking them first. When your tickets are checked please let us know immediately to fill your existing contracts so payment can be made promptly. Our practice has always been to fill the oldest contract first. DIRECT DEPOSIT AVAILABLE ON GRAIN CHECKS The list keeps growing of customers who are seeing the value of this timely method to put cash in the bank. Your grain sales proceeds can be deposited directly into the bank account of your choice and you can still receive written confirmation of the settlement by mail. This will eliminate the problem of checks being lost or delayed in the mail and trips to the elevator and bank. Actual paper checks will still be available and are the only option for accounts with liens against them. If you are interested in the direct deposit option, please complete the “Electronic Funds Transfer Authorization Agreement” at any of our member elevator locations or administrative office in Beloit. If you have any questions; please don’t hesitate to call the Beloit office at 888-848-9979.
You can now reach ANY member of the AgMark Marketing Team with ONE phone number! AgMark now has the ability to connect you to any member of our marketing team, no matter which office they work in, when you dial our toll free number at 888-848-9979. If you need to reach David Pfizenmaier in Clay Center, or Nick Hansen and Carrie Williams in Concordia, or Eric Hilt and Mark Hafliger in Beloit, you can reach them all by dialing 888-848-9979. This will help AgMark better assist our customers when someone is out of the office.
AGMARK IS MOBILE!! Have access to our CASH BIDS, LOCATION & HARVEST INFORMATION and MUCH MORE when using our Mobile Website! From the internet browser on your mobile device enter http://mobile.agmarkllc.com this will bring up our mobile site. You can also access it by going to our website at www.agmarkllc.com and clicking on the “mobile site” button at the bottom of the home page. Once the mobile site is open on your device you can save it as a shortcut on your homepage. Then, the next time you look us up we are just one easy click away. MARKETS ON CELL With AgMark’s “Markets on Cell” you can stay on top of the markets, whenever you want, wherever you can get cellular service. An additional feature is that we can send you important time sensitive information via text message. Simply sign up by calling the toll free AgMark customer service number at 888-848-9979. The best part of the deal is the service is free to all customers who market grain with AgMark. TRUCKS IN THE FIELD AT HARVEST AgMark will again have a supply of trucks for our customers who may need assistance with moving wheat at harvest. To manage the uncertain demand for these trucks, we ask our customers to contact a grain originator as soon as possible if you need this service since trucks will be allocated on a first-come, first-serve basis. Priority will also be given to grain that is contracted with AgMark verses grain coming in for storage. In years past we have been able to accommodate all our customer’s requests and will work to accomplish this in 2013. MANAGE RISK WITH CROP INSURANCE Producers every year take a look at their risk management plan. The decision to buy Federal Crop Insurance is a decision that most producers don’t even have to think about. Most feel like crop insurance is a necessary tool to help manage their operation’s risk. A harder question for some is should I buy hail insurance. If you have bought crop insurance you are already covered for hail losses. So why do so many people buy hail insurance? To answer that question we first need to evaluate how much potential risk is there and then each individual must decide if they are comfortable taking that risk.
Let’s take a look at the wheat crop that is currently in the field. To do this you will have to make some educated guesses. You have to come up with a value of what that crop is currently worth. You have to determine if there is a hail storm, how much do you stand to lose? Most producers in Kansas buy 70% or 75% coverage on their MPCI (Multi-Peril Crop Insurance) policy. For this example, let’s look at a wheat operation that has 75% insurance. If your APH is 50 bu. /acre then a 75% level insurance policy will start its coverage at 37.5 bu. /acre. That is a very important number to know. That is how many bushels you are policy is guarantying. The next step is a little more difficult. You need to estimate what the potential yield for this year’s crop could be. Is it a year where we have the potential to have a 60 bu. average or is it looking like a 45 bu. yield will catch most of it? If you don’t really have a good idea, then take a look at a couple of different yield scenarios. For our calculations we are going to estimate that the crop could have a 60 bu. average. This means that you could have a loss of 22.5 bushels/acre (60 – 37.5 MPCI Coverage) before your MPCI policy starts paying for a loss. If you could have sold that wheat you lost for $7.00 per bushel then you have just lost $157.50 per acre (22.5 bu. x $7.00). The next question is do you feel comfortable with taking that risk or do you want to buy some hail insurance to cover that potential loss if you get hail? If you are not comfortable with taking that big of a risk, hail insurance can be a very affordable way to cover the loss. That is why a lot of producers look at buying hail coverage. It is to cover those bushels that aren’t covered by your MPCI policy. Hail insurance is also very attractive for those producers who have elected to have enterprise units for their MPCI policy. If there is hail damage it will be assessed on a field by field basis. The final question you have to answer after deciding to purchase hail insurance is which policy is going to cover my situation the best. There are several different policies that pay out differently so it is very important to look at how each policy is going to react. It is also important to know that hail policies are not like MPCI policies. The cost and structure of the policy can vary from company to company. AgMark Crop Agents have the knowledge, tools, and very competitive hail rates to assist you with this whole process so please give us a call. We can help you determine the right policies that fit your needs and manage you’re risk. Don’t wait until the last minute to try and decide what you want. Come in and go over all of it now.
THANK YOU FOR YOUR BUSINESS AND HAVE A SAFE HARVEST!
Beloit, KS 67420 PO Box 444 AgMark LLC
