North Central Farmers Elevator
North Central Farmers Elevator Solutions for Your Success
The Difference a Year Makes By KEITH HAINY, General Manager
What an incredible difference a year makes. Last year’s wet crops meant more waiting while 100% of the crop went through the driers. This year we had crops maturing in the fields more normally and, with reduced acres from PP, driveway lines were almost non existent. We have invested a lot of money in preparation for meeting the handling needs of our producers, expecting crop yields similar to 2008 and 2009. That obviously did not happen. But the facilities will be here for the future, and will be put to the test in the years to come. The autumn weather was a bright spot for doing agronomy work. We had a huge fall season for the first time in several years. It’s a real blessing to have so much of that work now behind us. We’ll be able to service your spring needs and meet those challenges all the better with so much fall work already completed. Since our last newsletter, NCFE has expanded its territory. We purchased the former 4 Seasons agronomy center in Redfield and will now be providing complete agronomy and petroleum services in that area. We have also leased a warehouse in Strasburg, ND. An agronomy center will be staffed and equipped in advance of spring 2011. We already had customer bases in both
those areas, but now can serve them even better by having a localized presence right there. We’re looking forward to bringing improved services to existing customers, as well as gaining new customers with the customer service commitment reputation of the NCFE agronomy brand. Faulkton Farmers Elevator contacted us about possible unification earlier this year. We have had a long-standing, positive relationship with them for many years. Our boards have been in negotiation over the past few months and they will be taking the resulting proposal to their membership for a vote in December. Earlier this fall, a near tragic accident occurred at Warner. Chad Fischbach was involved in a grain engulfment that thankfully ended with a successful rescue. We are grateful that his life was spared, and for the incredible rescue efforts by the many first-responders. This company has always had a longstanding reputation as a safe company. While this accident shook us to the core, it has also reinforced our efforts to do all we can to prevent future accidents and keep all employees and customers out of harm’s way. We have safety equipment available at all times for use by our customers and urge you to borrow it when needed. The poor quality grain harvest of 2009 will never be forgotten, with the dangerous conditions it brought to many storage facilities. There
Continued on page 2
See us on the web at www.ncfe.coop
Decembe r 2010
VOLUME 16 • NUMBER 5
Annual Meeting Schedule
Friday, January 7 Father Bormann Hall, Ipswich
Noon
Dinner
1:00 p.m.
Speaker Damian Mason Followed by industry speakers
2:00 p.m. Business meeting with review of 2010 financial statement
2011 Elections
Rick Osterday, Bryan Bauer, and Quentin Larson are unopposed on the ballots for their districts, so no election will be held. Three members—Mike Clements, Dave Heidenreich, and Brady Schilder—are nominated in the south district. All active members in the south district will be mailed ballots in mid-December along with voting instructions and a return envelope. The confidential ballot must be returned to the corporate office by 5:00 p.m. on Thursday, January 6, 2011. A teller committee appointed by the president will count the votes, and results will be reported at the annual meeting. s
See page 2 for more details.
Still Taking Applications for CFA Financing NCFE and The Cooperative Finance Association (CFA) have a special financing program for the 2011 crop year. This rate applies only to products and services provided by NCFE: 5.5%* interest on loans *Variable interest rate based on CFA Base Rate of 3.5% as of 8/1/10.
Contact the staff members below to apply or ask for more information: • Ipswich: Jennifer Geditz…426-6813 • Highmore: Rachelle Werdel…852-2558 • Java: Celeste Lux…649-6291 s
Director Biographies for the 2011 Election Mike Clements and his wife, Carole, farm near Miller raising wheat, corn, soybeans, and sunflowers. Their daughter Jenny and her husband Cory work on the family farm. Their son Dan and his wife Angie live in Rapid City. Mike serves on the Hand County FSA committee and is a supervisor on the Ontario township board. He is on the NCFE advisory committee for Miller and Highmore, and is serving as an appointed, nonvoting director on the NCFE board. Mike says, “I would like to serve on the NCFE board to help in making decisions that affect the growth of this co-op. I feel the expansion in the southern district sites at Highmore, Miller, and Redfield will greatly increase our customer base, volumes of chemical, fuel, fertilizer, seed, and custom application. In the future of this co-op, I would like to see aerial application and grain-handling facilities in the southern areas.” Dave Heidenreich and his wife, Nancy, along with their daughter Tess, own and operate a family cow/ calf operation near Wecota. Dave has served over 20 years as a co-op director, starting with a term on the
Wecota Equity Board and then continuing to serve when the two cooperatives merged in 1992. Dave serves on the board of Elders of Immanuel Lutheran Church and is Myron Township Clerk. He is the vice-president for the north central region of the SD Cattleman’s Association. Dave comments that, “It has been a privilege and an education serving on the NCFE board.” Brady Schilder is from Faulkton and is part of his parents’ (Bruce and Ginger Schilder) farm/ranch operation. They raise small grains, row crops, alfalfa, and have a cow/calf herd. Brady has become increasingly involved in the family operation since college. He and his siblings (Tanner and Bailey) grew up on the family farm. Brady tries to stay involved in local 4-H activities and helps with shooting sports in the spring and Faulk County Farm & Country Days however he can. Brady comments, “I enjoy seeing youth involved in activities that promote leadership and responsibility.” s
The Difference a Year Makes are times when handling bridged corn should only be undertaken by professionals. Please never hesitate to call for specialized assistance as you encounter and manage hazardous grain situations. We are, once again, partnering with the Land O’Lakes® Foundation to combat rural hunger. Through the Feeding our Communities program, your board has decided to make $500 donations to multiple food banks in our trade territory. These funds will be matched by the LOL Foundation. While we wish there wasn’t such a need, it’s very satisfying that your co-op can make a difference in the lives of those in need. Our annual meeting is in January, and will have one board member election. I’m looking forward to seeing patrons, meeting new faces, and talking about the business and service end of your cooperative. A very good program has been
2
©2010 North Central Farmers Elevator. All Rights Reserved.
Continued from page 1
scheduled so we look forward to seeing as many of you as possible. Finally, your board and management has spent much time working on the vision and mission of this cooperative. One of the outcomes has been a statement of values that helps define the NCFE ethic: • Honesty and integrity in everything we do • Demonstrating the highest level of safety • Commitment to personalized customer service • Innovative, technology-driven solutions • The power of teamwork and loyalty • Pride in our business and communities These are the values we stand by and live each day, here at your co-op. With every transaction, with every encounter, they are the beliefs that will make this cooperative successful—and you, too. May you have a most joyful Christmas and prosperous New Year. s Published in partnership with VistaComm® (www.VistaComm.com).
Feeding Your Brood Cows By Scott Kilber, Feed Specialist
As we head into January, maintaining your cow’s body condition is critical. If we let her slip, it can cause problems at calving with weak calves, poor breedback, and reduced calf performance. Providing enough energy, protein, and minerals is essential and can be accomplished in a variety of ways. Forages (hay, alfalfa, silage, etc.) can provide the bulk of your cow’s nutritional needs. Distillers grains may also be a good fit, as they provide three key ingredients needed by cows: energy, protein, and phosphorus. A variety of supplements can be used to fill in any nutrition gaps. Tubs and cubes can be used to provide protein and minerals for balancing a typical crop residue or dormant pasture-type diet. Mineral or Cow Balancer-type
products can be used to balance out TMR rations being fed to cows. These products can also carry Rumensin, which will improve feed efficiency by 8% – 10%. It will also help clean up coccidia in the environment prior to calving, reducing the likelihood of baby calves getting coccidiosis. Talk to your Dakotaland rep or give me a call for recommendations on what to do for your cow herd. Finally, there are still a few days left before the Dec. 31 contest deadline. If you need some 30-13 tubs, now’s the time to get them and have your name entered in the drawing for the Real Tuff ¼ circle calving pen. Then watch for upcoming mineral promotions and spring vaccine bookings. s
Yours to Borrow
By Andy Clemen, Safety Coordinator
We have safety equipment and it’s available for you to use. Our equipment includes: harnesses and lifelines; air/gas monitor; radios; and other personal protective equipment. Call me in Ipswich at 800-658-3353 or on my cell at 605-216-2587 or call your local NCFE location to borrow any of these items. As we head into the new year, please make farm safety a priority in all you do. s
3
Celebrating 10 Years
By Jarvis Haugeberg, General Manager, Dakotaland Feeds, LLC
Hello everyone. It’s been a long time since I’ve written in this newsletter after being a regular for many years. Dr. Roxanne has filled this space and will do so again, as she is better qualified to write about how you can improve your cattle operations. I chose to write for this issue because I felt it might be good to write about how things are going with our company itself. Dakotaland Feeds celebrated its 10th anniversary this September. I know this sounds cliché, but it’s hard to believe 10 years has passed. At the risk of sounding self-inflating, I think it’s safe to say that the investment made by NCFE has been a solid one. This return on investment has been driven by being profitable each year. Our profits have just been consistently solid in the range of industry averages. We believe we have provided good service to our customers and will continue to do so in the future. In mid-August, we closed on a deal to purchase a feed business in Glen Ullin, ND, 50 miles west of Bismarck. It had been operated under the name Circle K Feed & Grain since 1982 as a sole proprietorship. The business has been very successful over the years and our goal is to continue and build on that success. Creep feeds and range cubes have been the main products produced and marketed at that business. With our extensive product line in our offering, we
intend to offer a much wider range of products to the producers in that area. We will be bringing our customers in that market more value, offering minerals, tubs, and supplements that will help them make their cattle perform better. Through this purchase, we have expanded our geography significantly. That will be good for the company overall, as we will have a larger area to distribute the products we produce in Huron. This additional volume will bring down our costs of production and that will benefit all of our customers. Through this acquisition, we are now in the grain business on a very small level. We do originate grain and load single cars. The area is known for producing very high-quality spring wheat and this year is no exception. By the time you read this, we will also have been in operation at our Herreid feed mill for more than a year. Things continue to go well there and, in fact, better than projected. As General Manager, I would like to sincerely thank you for your business. We never want to take business for granted and know we are in a competitive market. We constantly strive to bring more value to our customers by offering services and staying current with our product offering. Please let us know if you have any suggestions on how we can serve you better. s
Laughing With Damian Mason
4
Humorist Damian Mason will be the featured speaker at the NCFE annual meeting. He has been a professional speaker, entertainer, and author since 1994. Born and raised on an Indiana dairy farm, he has an ag econ degree from Purdue but prefers telling jokes over talking economic policy. Damian has logged over 1,100 appearances, entertaining crowds in 49 states and 7 countries. He and his wife, Lori, live on a 200-acre farm in Huntington, Indiana. Come listen to and enjoy the quick-witted comedy of Damian Mason. s
Interest Rates Changes Effective 12-01-2010: • New issued deferred contracts due between now and April 30, 2012—2% • New issued deferred contracts due May 1, 2012 or later—4% • Demand notes—2% Existing deferred payment contracts will remain the same rate as issued. Existing deferred payment contracts can be extended one time, as long as the producer request comes before the due date. Interest rates will remain same as issued. s
Equipment for Sale
By Steve Benning, Shop Manager
Our truck and auto center is one of the most complete service shops in the area. We can take care of the repairs and maintenance on your cars, trucks, and farm equipment. Whether it be a basic oil change, new tires, mechanical repairs, or other services, let our talented staff keep your vehicle in good working condition. Give us a call at 605-426-6782 to schedule service time. We have six tri-packs for sale. These auxiliary power units are still mounted on trucks we recently purchased, and buyers are responsible for removal
from the trucks. We also have 2002 Great Dane flat beds for sale. These trailers have aluminum wheels, bulk heads, and tie-down winches. For more information and pricing on these items, give me a call at 605-380-0210. We recently purchased a 2,300-gallon Better-Bilt sewer wagon. It is available for rent by calling me here at the shop. NCFE is your convenient dealer for Roper pumps. If you need parts or a new pump, we’ll more than likely have what you need on hand. We are also dealers for the following tarp systems: Agri-Cover,® Shur-Co,® and Pro-Lok.® s
These aluminum Great Dane flatbeds can be seen at the NCFE Farm Store.
A Great Fall
By MIKE NICKOLAS, Grain Manager
What a great fall for harvesting crops, and for NCFE facilities to take delivery of them. However, I don’t think any of us would have minded if harvest would have lasted a few more weeks. We all would have liked to have had a few more bushels for help in offsetting fixed costs. Last summer, we estimated what our potential loss of handle of both soybeans and corn would be, due to preventive planted acres. Both crops exceeded the amount we estimated we would receive at harvest time. Higher bean prices at harvest brought more beans to town than we anticipated. Soybean deliveries exceeded our estimate by 1.5 million bushels. We had estimated that our harvest delivery of corn receipts could drop by half from last year’s harvest. PP acres along with reduced yields, a much dryer crop, excess farm storage capacity, and wide basis levels
meant that a good share of the crop stayed on farms. Even with all those factors, NCFE facilities exceeded corn delivery estimates by over one million bushels. With the crop tucked away, we anticipate strengthening of basis levels for both corn and soybeans through December. The past couple of years we have seen and come to expect volatility in the commodity futures. But now it seems we have entered into an era of “extreme” volatility in the futures markets. While we cannot predict what happens around the world with government policies and intervention, especially in China, we do feel that commodity prices will remain fairly strong going forward. A tighter-than-needed supply and continuous demand will keep things very interesting going forward. Check out our website as we are posting prices for 2011 harvested crops. We are also doing Futures Fix/ Hedge-to-Arrive contracts for the 2012 crop, with no charges for either. We appreciate your business this past year and wish you a safe and joyous holiday season. s
5
Agronomy News
By Matt Christopherson, Agronomy Marketing Manager, and Lane Mielke, Sales Manager
Emerald Extras Rewards
Emerald Extras is a program that North Central offers through Winfield® Solutions to provide incentive rewards for growers. The customized system allows freedom in choosing inputs that best fit a customer’s operation—while earning some pretty amazing rewards along the way. Many of our customers who earned rewards were already using the products that are part of the program. Last year, 72 different vacation trips were earned by NCFE customers. We’d like to help you earn a trip or other reward, too. Farmers in the Redfield area now have a full-service NCFE agronomy center. The best way to do that is by talking with your NCFE Those helping provide services include Sam Cramer, Todd Mielke, Vince Marshall, sales agronomist. They will Curtis Jandel, and Rick Arneson. get you enrolled in the program. Different paks are individualized to specific crops. Then products are selected from ‘companion’ lists appropriate to each crop pak. The products include a wide variety of agronomic inputs ranging from herbicides, insecticides, seed treatments, and micronutrients. Your agronomist can fully explain the program and help see that you are rewarded for using these We had a tremendous fall across the NCFE products. We’re looking forward to helping you qualify for countryside. We completed many acres of Douan Emerald-sponsored vacation or other reward. s bleshot application and spreading work for customers. It’s been a few years since we’ve been able to do this much fall work, so it felt good to be out in those fields. All that work done after Matt Christopherson: 380-1238, Marketing manager harvest bodes well for this spring. Lane Mielke: 380-4674, Sales manager It’s also been a great fall seed sales season. We want to thank all our customers for the trust Rick Arneseon: 216-1651, Warner area agronomist they place in our industry-leading seed lineBob Volk: 216-0086, Java/Bowdle area agronomist up. Don’t hesitate to contact your nearby sales Brent Neiger: 216-4820, Ipswich area agronomist agronomist as you finalize your 2011 crop input Tim Borge: 380-9749, Wecota/Onaka area agronomist needs. Make sure you’re enrolled in the BurgunJustin North: 216-6684, Leola/Bowdle area agronomist dy & Gold Program, too, so you can get a rebate Greg Volk: 380-5430, Herreid/Pollock area agronomist check next fall. Jesse Frost: 216-7824, Lebanon area agronomist We’ve invested in a lot of new upgrades and Dillon Baloun: 216-6380, Highmore agronomy manager/agronomist improvements at all our locations, including our Lee Kolda: 377-4774, Highmore/Miller area agronomist new Redfield and Strasburg agronomy centers. Curtis Jandel: 216-7138, Precision Ag specialist A total of 50 additional tons of blending capacity has been added across our entire trade territory Colby Tolk: 216-6060, Miller agronomy manager/agronomist to better serve our growing customer base. These Evan Salverson: 216-8103, Java area agronomist are exciting times for NCFE agronomy and we Bryce Weber: 701-336-4673, Hague area agronomist look forward to doing all we can to help you with Sam Cramer: 380-0273, Northville/Redfield area agronomist your farming operation. Thank you so much for your business. s
Tremendous Fall Bodes Well for Spring
NCFE Agronomy Team
6
Ask your agronomist how to add profit to your operation with the NCFE Burgundy & Gold Program.
Merry Christmas from your NCFE Board and Employees Raul Alvarez Joseph Anderson Brett Anglin Dom Anglin Ralph Arbach Richard Arneson Pam Baer Brandon Baloun Dillon Baloun Jan Barondeau Chad Barrringer Jerry Bauer Paul Bauer Bill Beaner Jackie Benning Steve Benning Jeff Berreth Joe Beranek Shannon Bladow Bill Bohn Tim Borge Kyle Bowman Ed Brandvold Deb Braun Wayne Braun Mark Breidenbach Randy Carlson Corey Carter Rogelio Castaneda Matt Christopherson Randy Christopherson Andy Clemen Matt Collins Sam Cramer Gerry Crawford Bob Dahlquist Don Davis Dave Dohman Delmer Droog Jackie Easton Brandon Erdmann Chris Erdmann Mike Fastnacht Levi Faulstich Chad Fischbach Glen Fitch Brent Fortin Dan Forrest
Ted Frederick Shannon Frericks Jesse Frost Bob Geditz, Jr. Jennifer Geditz Mike Geditz Bruce Geffre Jon Gilbert Ed Goehring Alfredo Gonzales Barb Gorczewski Brenda Green Rick Haessig Keith Hainy Theresa Hayden Jason Heagley Tammy Heupel Glen Hodson Nora Hoffman Chuck Hogle Brett Holler Deanne Hoyle Tonya Huber Dwight Huizenga Eric Hulm Dennis Hysell Larry Jakobsen Curtis Jandel Jacki Jangula Linda Johnson Veronica Johnson Morris Jones Travis Jost Dale Judkins Barb Kaiser Walt Kaiser Ron Kappes Scott Kilber Kyle Kleffman Clyle Knoll Lee Kolda Susan Kolb Harlan Kopecky Kerry Kopecky Ed Kraft Dennis Kuehl Kelly Lofswold Cindy Lunders
Celeste Lux Monica Mandernach Kenny Martchinske Vincent Marshall Dennis McClendon Lane Mielke Todd Mielke Burt Misslitz Val Misslitz Dennis Moser Brent Neiger Bryce Neiger Charlie Neuharth Mike Nickolas Kelly Nieuwsma Justin North Styles Ochotorena Devin Omland Glen Opp Ramiro Padilla, Jr. Craig Papke Kellee Persoon Sara Peterson Kenneth Pfaff Randy Powell Donnie Quenzer Angela Rausch Katrina Reuer Keith Richter Jason Roblewsky Michelle Roblewsky Doug Roggow Mark Ross Brian Roth Loren Rozell Perry Rye Scott Sahli Evan Salverson Sergio Salazar Jay Sandness Darwin Sauer Melvin Schatz Mary Schaunaman Jim Schlecht Lee Schlosser Dennis Schock Jerome Schumacher John Schumacher
Ricky Schwartz Joe Senyak Mike Senyak Sonja Seymour Eric Sieh Brandon Silbernagel Larry Sime Mark Sivertsen James Sleger Stanton Spitzer Jim Stafford Jake Stephenson Phillip Stephenson Karmen Stiklestad Max Stoltenburg Kevin Stoner Lyle Stotz Shane Stout Mark Taylor Colby Tolk Dennis Tople Dan Trudo Bryce Turner Jacques VanLeeuwen Patty Vogel Greg Volk Bob Volk Bill Wagner Jim Waite Jason Wambach Richal Wambach Neil Ward Bryce Weber Dora Weideman Troy Weig Ronnie Weinrich Joshua Weisbeck Kent Weiszhaar Rachelle Werdel Rusty Wernsmann Marietta Wientjes Rick Wolff Kent Wolforth Joe Zikmund
DIRECTORY Bowdle West Terminal . . . 605-285-6533 Toll-Free . . . . . . . . . . . . . . 800-584-9286 In Town . . . . . . . . . . . . . . 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 Highmore . . . . . . . . . . . . . 605-852-2558 Ipswich . . . . . . . . . . . . . . . 605-426-6021 Toll-Free . . . . . . . . . . . . . . 800-658-3353 Auto Center . . . . . . . . . . . 605-426-6782 Chemical Shed . . . . . . . . . 605-426-6999 Farm Store . . . . . . . . . . . . 605-426-6163 Farm Store Toll-Free . . . . . 877-232-4692 Java . . . . . . . . . . . . . . . . . . 605-649-6291 Lebanon . . . . . . . . . . . . . . . 605-768-9465 Leola . . . . . . . . . . . . . . . . . 605-439-3137 Petroleum . . . . . . . . . . . . 605-439-3147 Miller . . . . . . . . . . . . . . . . . 605-853-2351 Northville . . . . . . . . . . . . . 605-887-3441 Onaka . . . . . . . . . . . . . . . . 605-447-5803 Pollock . . . . . . . . . . . . . . . . 605-889-2321 Redfield . . . . . . . . . . . . . . . 605-472-0775 Sun Terminal . . . . . . . . . . . 605-426-6843 Warner Elevator . . . . . . . . 605-225-8247 Petroleum . . . . . . . . . . . . 605-225-9608 Wecota . . . . . . . . . . . . . . . 605-324-3200 West Warner . . . . . . . . . . 605-225-7103
BOARD of DIRECTORS Richard Osterday – Java, President Larry Vetch – Onaka, Vice-President Quentin Larson – Pollock, Secretary Bryan Bauer – Mina Mike Clements - Miller Lynn Deibert – Herreid Dale Gill – Java Dave Heidenreich – Wecota Derek Merkel – Leola Ken Olson, Jr. – Turton Larry Olson – Ipswich Phillip Shanley – Warner
Our Mission: To be an agricultural leader in serving our customers’ needs with integrity, innovation, and profitability.
PO Box 366 Ipswich, SD 57451
Outside Influences
By Jeremy Vander Vorst, Benson-Quinn Branch Manager
In recent weeks, the grain markets seem to be paying close attention to outside markets. Chinese markets are greatly affecting price direction for our commodities. These factors make it extremely difficult to make decisions whether to hold or sell. Currently, prices are at very attractive levels and many producers can reap large profits with today’s prices. However, in the back of most producers’ minds is the threat of a market rally during winter due to poor South American weather or a battle for acres in the US next spring. These threats should keep the markets supported throughout the winter months. Trading commodities in these unpredictably volatile times can be very stressful and difficult. Just when we think we have the markets figured out or feel comfortable with the market direction, it seems like something with the economy, US
dollar, or China causes violent price swings. Frequently, these events are very hard to predict and are unforeseen by many in the trade. This is often a producer’s biggest problem with marketing grain. For those concerned about that unforeseen event in the future, you should look into using options. Options can be used in a variety of different scenarios. Put options can be purchased to put a floor in for your commodities to protect against prices falling. Put options also leave all of your upside open for capturing price gains. Purchasing a put option and selling a call, which is considered a fence, is also a strategy used to hedge grain. To perform this strategy, a producer would purchase a put option and sell a call option. By doing this, you are protecting your downside along with leaving a specific amount of upside potential available. As of this writing, prices of old and new crop grain are at very profitable levels and producers should consider making sales. Please call or stop by the West Bowdle terminal with questions. My number is 877-893-0800. s
The Difference a Year Makes By KEITH HAINY, General Manager
What an incredible difference a year makes. Last year’s wet crops meant more waiting while 100% of the crop went through the driers. This year we had crops maturing in the fields more normally and, with reduced acres from PP, driveway lines were almost non existent. We have invested a lot of money in preparation for meeting the handling needs of our producers, expecting crop yields similar to 2008 and 2009. That obviously did not happen. But the facilities will be here for the future, and will be put to the test in the years to come. The autumn weather was a bright spot for doing agronomy work. We had a huge fall season for the first time in several years. It’s a real blessing to have so much of that work now behind us. We’ll be able to service your spring needs and meet those challenges all the better with so much fall work already completed. Since our last newsletter, NCFE has expanded its territory. We purchased the former 4 Seasons agronomy center in Redfield and will now be providing complete agronomy and petroleum services in that area. We have also leased a warehouse in Strasburg, ND. An agronomy center will be staffed and equipped in advance of spring 2011. We already had customer bases in both
those areas, but now can serve them even better by having a localized presence right there. We’re looking forward to bringing improved services to existing customers, as well as gaining new customers with the customer service commitment reputation of the NCFE agronomy brand. Faulkton Farmers Elevator contacted us about possible unification earlier this year. We have had a long-standing, positive relationship with them for many years. Our boards have been in negotiation over the past few months and they will be taking the resulting proposal to their membership for a vote in December. Earlier this fall, a near tragic accident occurred at Warner. Chad Fischbach was involved in a grain engulfment that thankfully ended with a successful rescue. We are grateful that his life was spared, and for the incredible rescue efforts by the many first-responders. This company has always had a longstanding reputation as a safe company. While this accident shook us to the core, it has also reinforced our efforts to do all we can to prevent future accidents and keep all employees and customers out of harm’s way. We have safety equipment available at all times for use by our customers and urge you to borrow it when needed. The poor quality grain harvest of 2009 will never be forgotten, with the dangerous conditions it brought to many storage facilities. There
Continued on page 2
See us on the web at www.ncfe.coop
Decembe r 2010
VOLUME 16 • NUMBER 5
Annual Meeting Schedule
Friday, January 7 Father Bormann Hall, Ipswich
Noon
Dinner
1:00 p.m.
Speaker Damian Mason Followed by industry speakers
2:00 p.m. Business meeting with review of 2010 financial statement
2011 Elections
Rick Osterday, Bryan Bauer, and Quentin Larson are unopposed on the ballots for their districts, so no election will be held. Three members—Mike Clements, Dave Heidenreich, and Brady Schilder—are nominated in the south district. All active members in the south district will be mailed ballots in mid-December along with voting instructions and a return envelope. The confidential ballot must be returned to the corporate office by 5:00 p.m. on Thursday, January 6, 2011. A teller committee appointed by the president will count the votes, and results will be reported at the annual meeting. s
See page 2 for more details.
Still Taking Applications for CFA Financing NCFE and The Cooperative Finance Association (CFA) have a special financing program for the 2011 crop year. This rate applies only to products and services provided by NCFE: 5.5%* interest on loans *Variable interest rate based on CFA Base Rate of 3.5% as of 8/1/10.
Contact the staff members below to apply or ask for more information: • Ipswich: Jennifer Geditz…426-6813 • Highmore: Rachelle Werdel…852-2558 • Java: Celeste Lux…649-6291 s
Director Biographies for the 2011 Election Mike Clements and his wife, Carole, farm near Miller raising wheat, corn, soybeans, and sunflowers. Their daughter Jenny and her husband Cory work on the family farm. Their son Dan and his wife Angie live in Rapid City. Mike serves on the Hand County FSA committee and is a supervisor on the Ontario township board. He is on the NCFE advisory committee for Miller and Highmore, and is serving as an appointed, nonvoting director on the NCFE board. Mike says, “I would like to serve on the NCFE board to help in making decisions that affect the growth of this co-op. I feel the expansion in the southern district sites at Highmore, Miller, and Redfield will greatly increase our customer base, volumes of chemical, fuel, fertilizer, seed, and custom application. In the future of this co-op, I would like to see aerial application and grain-handling facilities in the southern areas.” Dave Heidenreich and his wife, Nancy, along with their daughter Tess, own and operate a family cow/ calf operation near Wecota. Dave has served over 20 years as a co-op director, starting with a term on the
Wecota Equity Board and then continuing to serve when the two cooperatives merged in 1992. Dave serves on the board of Elders of Immanuel Lutheran Church and is Myron Township Clerk. He is the vice-president for the north central region of the SD Cattleman’s Association. Dave comments that, “It has been a privilege and an education serving on the NCFE board.” Brady Schilder is from Faulkton and is part of his parents’ (Bruce and Ginger Schilder) farm/ranch operation. They raise small grains, row crops, alfalfa, and have a cow/calf herd. Brady has become increasingly involved in the family operation since college. He and his siblings (Tanner and Bailey) grew up on the family farm. Brady tries to stay involved in local 4-H activities and helps with shooting sports in the spring and Faulk County Farm & Country Days however he can. Brady comments, “I enjoy seeing youth involved in activities that promote leadership and responsibility.” s
The Difference a Year Makes are times when handling bridged corn should only be undertaken by professionals. Please never hesitate to call for specialized assistance as you encounter and manage hazardous grain situations. We are, once again, partnering with the Land O’Lakes® Foundation to combat rural hunger. Through the Feeding our Communities program, your board has decided to make $500 donations to multiple food banks in our trade territory. These funds will be matched by the LOL Foundation. While we wish there wasn’t such a need, it’s very satisfying that your co-op can make a difference in the lives of those in need. Our annual meeting is in January, and will have one board member election. I’m looking forward to seeing patrons, meeting new faces, and talking about the business and service end of your cooperative. A very good program has been
2
©2010 North Central Farmers Elevator. All Rights Reserved.
Continued from page 1
scheduled so we look forward to seeing as many of you as possible. Finally, your board and management has spent much time working on the vision and mission of this cooperative. One of the outcomes has been a statement of values that helps define the NCFE ethic: • Honesty and integrity in everything we do • Demonstrating the highest level of safety • Commitment to personalized customer service • Innovative, technology-driven solutions • The power of teamwork and loyalty • Pride in our business and communities These are the values we stand by and live each day, here at your co-op. With every transaction, with every encounter, they are the beliefs that will make this cooperative successful—and you, too. May you have a most joyful Christmas and prosperous New Year. s Published in partnership with VistaComm® (www.VistaComm.com).
Feeding Your Brood Cows By Scott Kilber, Feed Specialist
As we head into January, maintaining your cow’s body condition is critical. If we let her slip, it can cause problems at calving with weak calves, poor breedback, and reduced calf performance. Providing enough energy, protein, and minerals is essential and can be accomplished in a variety of ways. Forages (hay, alfalfa, silage, etc.) can provide the bulk of your cow’s nutritional needs. Distillers grains may also be a good fit, as they provide three key ingredients needed by cows: energy, protein, and phosphorus. A variety of supplements can be used to fill in any nutrition gaps. Tubs and cubes can be used to provide protein and minerals for balancing a typical crop residue or dormant pasture-type diet. Mineral or Cow Balancer-type
products can be used to balance out TMR rations being fed to cows. These products can also carry Rumensin, which will improve feed efficiency by 8% – 10%. It will also help clean up coccidia in the environment prior to calving, reducing the likelihood of baby calves getting coccidiosis. Talk to your Dakotaland rep or give me a call for recommendations on what to do for your cow herd. Finally, there are still a few days left before the Dec. 31 contest deadline. If you need some 30-13 tubs, now’s the time to get them and have your name entered in the drawing for the Real Tuff ¼ circle calving pen. Then watch for upcoming mineral promotions and spring vaccine bookings. s
Yours to Borrow
By Andy Clemen, Safety Coordinator
We have safety equipment and it’s available for you to use. Our equipment includes: harnesses and lifelines; air/gas monitor; radios; and other personal protective equipment. Call me in Ipswich at 800-658-3353 or on my cell at 605-216-2587 or call your local NCFE location to borrow any of these items. As we head into the new year, please make farm safety a priority in all you do. s
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Celebrating 10 Years
By Jarvis Haugeberg, General Manager, Dakotaland Feeds, LLC
Hello everyone. It’s been a long time since I’ve written in this newsletter after being a regular for many years. Dr. Roxanne has filled this space and will do so again, as she is better qualified to write about how you can improve your cattle operations. I chose to write for this issue because I felt it might be good to write about how things are going with our company itself. Dakotaland Feeds celebrated its 10th anniversary this September. I know this sounds cliché, but it’s hard to believe 10 years has passed. At the risk of sounding self-inflating, I think it’s safe to say that the investment made by NCFE has been a solid one. This return on investment has been driven by being profitable each year. Our profits have just been consistently solid in the range of industry averages. We believe we have provided good service to our customers and will continue to do so in the future. In mid-August, we closed on a deal to purchase a feed business in Glen Ullin, ND, 50 miles west of Bismarck. It had been operated under the name Circle K Feed & Grain since 1982 as a sole proprietorship. The business has been very successful over the years and our goal is to continue and build on that success. Creep feeds and range cubes have been the main products produced and marketed at that business. With our extensive product line in our offering, we
intend to offer a much wider range of products to the producers in that area. We will be bringing our customers in that market more value, offering minerals, tubs, and supplements that will help them make their cattle perform better. Through this purchase, we have expanded our geography significantly. That will be good for the company overall, as we will have a larger area to distribute the products we produce in Huron. This additional volume will bring down our costs of production and that will benefit all of our customers. Through this acquisition, we are now in the grain business on a very small level. We do originate grain and load single cars. The area is known for producing very high-quality spring wheat and this year is no exception. By the time you read this, we will also have been in operation at our Herreid feed mill for more than a year. Things continue to go well there and, in fact, better than projected. As General Manager, I would like to sincerely thank you for your business. We never want to take business for granted and know we are in a competitive market. We constantly strive to bring more value to our customers by offering services and staying current with our product offering. Please let us know if you have any suggestions on how we can serve you better. s
Laughing With Damian Mason
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Humorist Damian Mason will be the featured speaker at the NCFE annual meeting. He has been a professional speaker, entertainer, and author since 1994. Born and raised on an Indiana dairy farm, he has an ag econ degree from Purdue but prefers telling jokes over talking economic policy. Damian has logged over 1,100 appearances, entertaining crowds in 49 states and 7 countries. He and his wife, Lori, live on a 200-acre farm in Huntington, Indiana. Come listen to and enjoy the quick-witted comedy of Damian Mason. s
Interest Rates Changes Effective 12-01-2010: • New issued deferred contracts due between now and April 30, 2012—2% • New issued deferred contracts due May 1, 2012 or later—4% • Demand notes—2% Existing deferred payment contracts will remain the same rate as issued. Existing deferred payment contracts can be extended one time, as long as the producer request comes before the due date. Interest rates will remain same as issued. s
Equipment for Sale
By Steve Benning, Shop Manager
Our truck and auto center is one of the most complete service shops in the area. We can take care of the repairs and maintenance on your cars, trucks, and farm equipment. Whether it be a basic oil change, new tires, mechanical repairs, or other services, let our talented staff keep your vehicle in good working condition. Give us a call at 605-426-6782 to schedule service time. We have six tri-packs for sale. These auxiliary power units are still mounted on trucks we recently purchased, and buyers are responsible for removal
from the trucks. We also have 2002 Great Dane flat beds for sale. These trailers have aluminum wheels, bulk heads, and tie-down winches. For more information and pricing on these items, give me a call at 605-380-0210. We recently purchased a 2,300-gallon Better-Bilt sewer wagon. It is available for rent by calling me here at the shop. NCFE is your convenient dealer for Roper pumps. If you need parts or a new pump, we’ll more than likely have what you need on hand. We are also dealers for the following tarp systems: Agri-Cover,® Shur-Co,® and Pro-Lok.® s
These aluminum Great Dane flatbeds can be seen at the NCFE Farm Store.
A Great Fall
By MIKE NICKOLAS, Grain Manager
What a great fall for harvesting crops, and for NCFE facilities to take delivery of them. However, I don’t think any of us would have minded if harvest would have lasted a few more weeks. We all would have liked to have had a few more bushels for help in offsetting fixed costs. Last summer, we estimated what our potential loss of handle of both soybeans and corn would be, due to preventive planted acres. Both crops exceeded the amount we estimated we would receive at harvest time. Higher bean prices at harvest brought more beans to town than we anticipated. Soybean deliveries exceeded our estimate by 1.5 million bushels. We had estimated that our harvest delivery of corn receipts could drop by half from last year’s harvest. PP acres along with reduced yields, a much dryer crop, excess farm storage capacity, and wide basis levels
meant that a good share of the crop stayed on farms. Even with all those factors, NCFE facilities exceeded corn delivery estimates by over one million bushels. With the crop tucked away, we anticipate strengthening of basis levels for both corn and soybeans through December. The past couple of years we have seen and come to expect volatility in the commodity futures. But now it seems we have entered into an era of “extreme” volatility in the futures markets. While we cannot predict what happens around the world with government policies and intervention, especially in China, we do feel that commodity prices will remain fairly strong going forward. A tighter-than-needed supply and continuous demand will keep things very interesting going forward. Check out our website as we are posting prices for 2011 harvested crops. We are also doing Futures Fix/ Hedge-to-Arrive contracts for the 2012 crop, with no charges for either. We appreciate your business this past year and wish you a safe and joyous holiday season. s
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Agronomy News
By Matt Christopherson, Agronomy Marketing Manager, and Lane Mielke, Sales Manager
Emerald Extras Rewards
Emerald Extras is a program that North Central offers through Winfield® Solutions to provide incentive rewards for growers. The customized system allows freedom in choosing inputs that best fit a customer’s operation—while earning some pretty amazing rewards along the way. Many of our customers who earned rewards were already using the products that are part of the program. Last year, 72 different vacation trips were earned by NCFE customers. We’d like to help you earn a trip or other reward, too. Farmers in the Redfield area now have a full-service NCFE agronomy center. The best way to do that is by talking with your NCFE Those helping provide services include Sam Cramer, Todd Mielke, Vince Marshall, sales agronomist. They will Curtis Jandel, and Rick Arneson. get you enrolled in the program. Different paks are individualized to specific crops. Then products are selected from ‘companion’ lists appropriate to each crop pak. The products include a wide variety of agronomic inputs ranging from herbicides, insecticides, seed treatments, and micronutrients. Your agronomist can fully explain the program and help see that you are rewarded for using these We had a tremendous fall across the NCFE products. We’re looking forward to helping you qualify for countryside. We completed many acres of Douan Emerald-sponsored vacation or other reward. s bleshot application and spreading work for customers. It’s been a few years since we’ve been able to do this much fall work, so it felt good to be out in those fields. All that work done after Matt Christopherson: 380-1238, Marketing manager harvest bodes well for this spring. Lane Mielke: 380-4674, Sales manager It’s also been a great fall seed sales season. We want to thank all our customers for the trust Rick Arneseon: 216-1651, Warner area agronomist they place in our industry-leading seed lineBob Volk: 216-0086, Java/Bowdle area agronomist up. Don’t hesitate to contact your nearby sales Brent Neiger: 216-4820, Ipswich area agronomist agronomist as you finalize your 2011 crop input Tim Borge: 380-9749, Wecota/Onaka area agronomist needs. Make sure you’re enrolled in the BurgunJustin North: 216-6684, Leola/Bowdle area agronomist dy & Gold Program, too, so you can get a rebate Greg Volk: 380-5430, Herreid/Pollock area agronomist check next fall. Jesse Frost: 216-7824, Lebanon area agronomist We’ve invested in a lot of new upgrades and Dillon Baloun: 216-6380, Highmore agronomy manager/agronomist improvements at all our locations, including our Lee Kolda: 377-4774, Highmore/Miller area agronomist new Redfield and Strasburg agronomy centers. Curtis Jandel: 216-7138, Precision Ag specialist A total of 50 additional tons of blending capacity has been added across our entire trade territory Colby Tolk: 216-6060, Miller agronomy manager/agronomist to better serve our growing customer base. These Evan Salverson: 216-8103, Java area agronomist are exciting times for NCFE agronomy and we Bryce Weber: 701-336-4673, Hague area agronomist look forward to doing all we can to help you with Sam Cramer: 380-0273, Northville/Redfield area agronomist your farming operation. Thank you so much for your business. s
Tremendous Fall Bodes Well for Spring
NCFE Agronomy Team
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Ask your agronomist how to add profit to your operation with the NCFE Burgundy & Gold Program.
Merry Christmas from your NCFE Board and Employees Raul Alvarez Joseph Anderson Brett Anglin Dom Anglin Ralph Arbach Richard Arneson Pam Baer Brandon Baloun Dillon Baloun Jan Barondeau Chad Barrringer Jerry Bauer Paul Bauer Bill Beaner Jackie Benning Steve Benning Jeff Berreth Joe Beranek Shannon Bladow Bill Bohn Tim Borge Kyle Bowman Ed Brandvold Deb Braun Wayne Braun Mark Breidenbach Randy Carlson Corey Carter Rogelio Castaneda Matt Christopherson Randy Christopherson Andy Clemen Matt Collins Sam Cramer Gerry Crawford Bob Dahlquist Don Davis Dave Dohman Delmer Droog Jackie Easton Brandon Erdmann Chris Erdmann Mike Fastnacht Levi Faulstich Chad Fischbach Glen Fitch Brent Fortin Dan Forrest
Ted Frederick Shannon Frericks Jesse Frost Bob Geditz, Jr. Jennifer Geditz Mike Geditz Bruce Geffre Jon Gilbert Ed Goehring Alfredo Gonzales Barb Gorczewski Brenda Green Rick Haessig Keith Hainy Theresa Hayden Jason Heagley Tammy Heupel Glen Hodson Nora Hoffman Chuck Hogle Brett Holler Deanne Hoyle Tonya Huber Dwight Huizenga Eric Hulm Dennis Hysell Larry Jakobsen Curtis Jandel Jacki Jangula Linda Johnson Veronica Johnson Morris Jones Travis Jost Dale Judkins Barb Kaiser Walt Kaiser Ron Kappes Scott Kilber Kyle Kleffman Clyle Knoll Lee Kolda Susan Kolb Harlan Kopecky Kerry Kopecky Ed Kraft Dennis Kuehl Kelly Lofswold Cindy Lunders
Celeste Lux Monica Mandernach Kenny Martchinske Vincent Marshall Dennis McClendon Lane Mielke Todd Mielke Burt Misslitz Val Misslitz Dennis Moser Brent Neiger Bryce Neiger Charlie Neuharth Mike Nickolas Kelly Nieuwsma Justin North Styles Ochotorena Devin Omland Glen Opp Ramiro Padilla, Jr. Craig Papke Kellee Persoon Sara Peterson Kenneth Pfaff Randy Powell Donnie Quenzer Angela Rausch Katrina Reuer Keith Richter Jason Roblewsky Michelle Roblewsky Doug Roggow Mark Ross Brian Roth Loren Rozell Perry Rye Scott Sahli Evan Salverson Sergio Salazar Jay Sandness Darwin Sauer Melvin Schatz Mary Schaunaman Jim Schlecht Lee Schlosser Dennis Schock Jerome Schumacher John Schumacher
Ricky Schwartz Joe Senyak Mike Senyak Sonja Seymour Eric Sieh Brandon Silbernagel Larry Sime Mark Sivertsen James Sleger Stanton Spitzer Jim Stafford Jake Stephenson Phillip Stephenson Karmen Stiklestad Max Stoltenburg Kevin Stoner Lyle Stotz Shane Stout Mark Taylor Colby Tolk Dennis Tople Dan Trudo Bryce Turner Jacques VanLeeuwen Patty Vogel Greg Volk Bob Volk Bill Wagner Jim Waite Jason Wambach Richal Wambach Neil Ward Bryce Weber Dora Weideman Troy Weig Ronnie Weinrich Joshua Weisbeck Kent Weiszhaar Rachelle Werdel Rusty Wernsmann Marietta Wientjes Rick Wolff Kent Wolforth Joe Zikmund
DIRECTORY Bowdle West Terminal . . . 605-285-6533 Toll-Free . . . . . . . . . . . . . . 800-584-9286 In Town . . . . . . . . . . . . . . 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 Highmore . . . . . . . . . . . . . 605-852-2558 Ipswich . . . . . . . . . . . . . . . 605-426-6021 Toll-Free . . . . . . . . . . . . . . 800-658-3353 Auto Center . . . . . . . . . . . 605-426-6782 Chemical Shed . . . . . . . . . 605-426-6999 Farm Store . . . . . . . . . . . . 605-426-6163 Farm Store Toll-Free . . . . . 877-232-4692 Java . . . . . . . . . . . . . . . . . . 605-649-6291 Lebanon . . . . . . . . . . . . . . . 605-768-9465 Leola . . . . . . . . . . . . . . . . . 605-439-3137 Petroleum . . . . . . . . . . . . 605-439-3147 Miller . . . . . . . . . . . . . . . . . 605-853-2351 Northville . . . . . . . . . . . . . 605-887-3441 Onaka . . . . . . . . . . . . . . . . 605-447-5803 Pollock . . . . . . . . . . . . . . . . 605-889-2321 Redfield . . . . . . . . . . . . . . . 605-472-0775 Sun Terminal . . . . . . . . . . . 605-426-6843 Warner Elevator . . . . . . . . 605-225-8247 Petroleum . . . . . . . . . . . . 605-225-9608 Wecota . . . . . . . . . . . . . . . 605-324-3200 West Warner . . . . . . . . . . 605-225-7103
BOARD of DIRECTORS Richard Osterday – Java, President Larry Vetch – Onaka, Vice-President Quentin Larson – Pollock, Secretary Bryan Bauer – Mina Mike Clements - Miller Lynn Deibert – Herreid Dale Gill – Java Dave Heidenreich – Wecota Derek Merkel – Leola Ken Olson, Jr. – Turton Larry Olson – Ipswich Phillip Shanley – Warner
Our Mission: To be an agricultural leader in serving our customers’ needs with integrity, innovation, and profitability.
PO Box 366 Ipswich, SD 57451
Outside Influences
By Jeremy Vander Vorst, Benson-Quinn Branch Manager
In recent weeks, the grain markets seem to be paying close attention to outside markets. Chinese markets are greatly affecting price direction for our commodities. These factors make it extremely difficult to make decisions whether to hold or sell. Currently, prices are at very attractive levels and many producers can reap large profits with today’s prices. However, in the back of most producers’ minds is the threat of a market rally during winter due to poor South American weather or a battle for acres in the US next spring. These threats should keep the markets supported throughout the winter months. Trading commodities in these unpredictably volatile times can be very stressful and difficult. Just when we think we have the markets figured out or feel comfortable with the market direction, it seems like something with the economy, US
dollar, or China causes violent price swings. Frequently, these events are very hard to predict and are unforeseen by many in the trade. This is often a producer’s biggest problem with marketing grain. For those concerned about that unforeseen event in the future, you should look into using options. Options can be used in a variety of different scenarios. Put options can be purchased to put a floor in for your commodities to protect against prices falling. Put options also leave all of your upside open for capturing price gains. Purchasing a put option and selling a call, which is considered a fence, is also a strategy used to hedge grain. To perform this strategy, a producer would purchase a put option and sell a call option. By doing this, you are protecting your downside along with leaving a specific amount of upside potential available. As of this writing, prices of old and new crop grain are at very profitable levels and producers should consider making sales. Please call or stop by the West Bowdle terminal with questions. My number is 877-893-0800. s
