North CeNtral Farmers Elevator
North Central Farmers Elevator Solutions for Your Success
Making History
New NCFE Office
By KEITH HAINY, General Manager
This fiscal year was historical for your cooperative, with a record-breaking $515 million in sales volume. Profits for the fiscal year are $9.055 million, before tax. This figure is after being reduced by the potential fine initially proposed by OSHA for the 2010 Warner accident. The last 4 months of the fiscal year saw huge volumes for the company, even with the very condensed spring. Volumes for this fiscal year compared to last year were: • Dry fertilizer tons: up 51% • Seed $: up 54% • Chemical $: up 46% • Spreading acres: up 95% • Spraying acres: up 41% • Diesel gallons: up 29% I am so proud of the accomplishments of our employees for their service
OCTOBE R 2011
VOLUME 17 • NUMBER 3
and role in these numbers as well as gratified by the support of patrons. Thank you for your patience again through such a challenging spring. As you will read in the agronomy article, we have increased capacity of the agronomy rolling stock and facilities. It is part of our continual drive to provide high-quality, timely service. Part of our challenge this spring was that we were short applicators to run our equipment. Normal springs would allow an applicator to get done spreading fertilizer and then jump into a sprayer. This year, everything happened at the same time, so we had equipment sitting. Know that we have aggressively sought to rectify this and are confident about all of our preparations for spring 2012. Other significant news in the NCFE agronomy department is the formation of NCFE Aerial LLC. Read more about this on page 4. We are truly excited about this venture and the service potential it should provide to customers.
Continued on page 2
See us on the web at www.ncfe.coop
New office construction is underway in Ipswich. The 100' x 140' building is going up just east of the farm store and is targeted for completion in February 2012. The $1.9 million facility will have muchneeded office space for employees along with a board room and training center. Half of the building’s financing is through the Rural Electric Economic Development, Inc. (REED) fund, which provides financing for community development projects that benefit rural areas. The architect is HKG, and the general contractor is Quest Construction, both from Aberdeen. s
Mark your calendars
The NCFE annual meeting is November 29 at the Father Borman Hall in Ipswich.
Nominating Committees for Director Vacancies
Historic Volumes Achieved Continued from page 1
Three director terms will expire at the November 29, 2011, annual meeting: Larry Vetch, Phillip Shanley, and Lynn Deibert. Director elections are conducted by mail ballot only. Patrons interested in running for the board, or submitting a director nomination, need to contact a nominating committee member from their district. The deadline for submitting candidates is October 20, 2011.
South District represented by Larry Vetch
Nominating committee members: • Bob Rusch 605-436-6221 • Dwight Vogel 605-447-5841
East District represented by Phillip Shanley
Nominating committee members: • Randy Kienow 605-229-0439 • Carey Nilsson 605-225-2202
Northwest District represented by Lynn Deibert
Nominating committee members: • Troy Beck 605-437-2949 • John Weist 605-437-2482
Call the NCFE farm store for your auger needs. We also have trailers and a complete line-up of your fall farming/ranching supplies and equipment.
NCFE Agronomy Team Matt Christopherson: 380-1238, Marketing Manager Lane Mielke: 380-4674, Sales Manager joel vetter: 380-9111, Seed Sales Manager Rick Arneseon: 216-1651, Warner Area Agronomist Bob Volk: 216-0086, Java/Bowdle Area Agronomist Brent Neiger: 216-4820, Ipswich Area Agronomist Tim Borge: 380-9749, Wecota/Onaka Area Agronomist Justin North: 216-6684, Leola/Bowdle Area Agronomist Greg Volk: 380-5430, Strasburg Agronomy Manager/Agronomist Tyler Kroupa: 680-4112, Lebanon Area Agronomist Dillon Baloun: 216-6380, Highmore Manager/Agronomist Lee Kolda: 377-4774, Miller Agronomy Manager/Agronomist Curtis Jandel: 216-7138, Precision Ag Specialist Bryce Weber: 701-336-4673, Hague Area Agronomist Sam Cramer: 380-0273, Northville/Redfield Area Agronomist Kevin Stark: 216-0292, Faulkton Agronomy Manager/Agronomist ADAM ODDEN: 203-1229, Faulkton Area Agronomist Chip King: 295-0461, Highmore Area Agronomist Wyatt Holsing: 216-5225, Miller Area Agronomist Bryce Nieger: 380-9751, Ipswich/Warner Area Agronomist
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Ask your agronomist how to add profit to your operation with the NCFE Burgundy & Gold Program.
©2011 North Central Farmers Elevator. All Rights Reserved.
We are distributing $424,000 worth of Burgundy & Gold checks. Read more about this program on page 8. Then talk to your local agronomist about how you can receive a check next year. At their August meeting, the Board of Directors looked at numerous ways to allocate the $9 million profit. They voted to use internally 100% of the domestic production activity deductible and take 100% bonus depreciation on 15-year depreciable assets. Patronage distribution will be $2.260 million, with 40% paid out in cash. By utilizing DPAD and the bonus depreciation, we will be placing $6.431 million into the capital reserve with an income tax liability of only $293,700. Being able to build NCFE’s capital reserves allows us to better serve our owners by using this money to improve assets for the future. The challenges of spring carried through to the trials of wheat harvest, which was extremely difficult because of quality issues. We tried to take care of our producers to the best of our ability as we handled their crop. We took some risk, but we can now say it all worked out. Our marketing and elevator personnel need to be commended for their role in handling the wheat and doing all they could for customers. The turning lane project at West Bowdle has been delayed until next spring. We are still waiting for DOT approval of the final plan. Even if approval were received today, it would be too late to safely begin construction during row crop harvest. Especially during this hectic time of year, always keep safety first. Your cooperative just received our MOD rating of .87 from the latest workman’s comp evaluation. This rating is incredible for this industry. We remain proud of our safety record but are certainly not complacent. We continue to always look for continual safety improvements. We’ll also keep you informed as we work our way through the OSHA citation process, which is close to being resolved. Thank you for your support this spring and summer. We will continue to do all we can to earn your business and be the kind of company that makes you proud, both as a customer and as an owner in your cooperative. s
Published in partnership with VistaComm® (www.VistaComm.com).
Marketing Plans at Harvest Time By Jeremy Vander Vorst, Benson-Quinn Branch Manager
Fall harvest is right around the corner, and most producers are shifting their focus on getting the crops off the field and into storage. Often when I talk with producers, I like to ask them if they are going to store the crop, haul it to the elevator, or just sell it right out of the field. For those of you who are going to store the crop, you should have a plan set in place to help you market the crop. The corn and winter wheat markets currently have carry in them. However, soybeans and spring wheat have very limited carry. The limited amount of carry is trying to entice producers to sell their grain now versus storing it over the winter. Producers who think the market will go higher after harvest could sell the grain and purchase call options to take advantage of higher prices in the future. In doing this, you would be able to avoid storage and interest charges. At 5% interest and 6¢/ bu. per month storage charges, it would cost you 11.5¢ /bu. per month. Call options are priced around 14¢ per month of ownership. However, selling the soybeans and buying the call option eliminates your downside risk if the markets were to fall. There are also ways to cheapen the call options and reduce your risk exposure. Currently, prices are at record high levels, and many producers are anticipating good yields in the NCFE territory. In recent weeks, many private forecasters have
The million dollar question is, “Can demand stay strong throughout the winter with prices at record high levels?” lowered the corn and soybean crops due to adverse weather conditions this summer. This has caused a run-up in prices to contract highs for many commodities. Prices of grain for 2012 are also at very attractive levels, and producers should be watching these prices closely. The million dollar question is, “Can demand stay strong throughout the winter with prices at record high levels?” New crop 2012 corn is near $6 cash, soybeans are near $13, and wheat is near $8.50. History tells us these are profitable levels. For those of you looking at locking in inputs for next year, you should also consider pricing a percentage of your expected production for 2012. I expect the markets to stay strong for the next few weeks as harvest starts, due to the poor yield results many are finding. From there on, forward world economies and demand will determine how high the markets can go. These two factors can change suddenly, so be prepared to make sales at these highly profitable levels. Call me at 877-893-0800 or stop by the West Bowdle terminal with any questions. s
The Wheat Harvest That Wasn’t
By MIKE NICKOLAS, Grain Manager
The most common words this past wheat harvest were 70-bushel straw and 35-to-40-bushel yields. Not only did we see poor yields across the NCFE territory, but we were also plagued with light test weight, damage, and vomitoxin. With reduced planted acres, poor yields, and quality issues, we were pleasantly surprised that we receipted more bushels than expected. Spring wheat receipts will settle out at over 5 million bushels, with an average protein of 15.5 and test weight of 58. Winter wheat receipts were 2.3 million bushels, with an average protein of 13 and 57 test weight.
Another disappointing aspect about this year’s crop was that nearly everyone had higher protein, thus the premiums disappeared very rapidly. With North Dakota also having higher protein, I do not see the premiums coming back anytime soon. I would like to think we did a pretty good job this harvest in accommodating most producers with their wheat harvest. There were only a few instances when we asked producers to not bring in the lightest test weight wheat. Then, after harvest we could better work with that type of wheat. Looking forward, we should see better basis levels as millers and exporters learn how to deal with this year’s quality issues. s
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Aerial LLC Formed
By Matt Christopherson, Agronomy Marketing Manager, and Lane Mielke, Sales Manager
NCFE agronomy is taking to the skies with the formation of NCFE Aerial LLC, which has bought two new Air Tractors to start the aviation fleet. A hanger is being constructed in Highmore as a base and for housing the planes. However, they can fly out of other airports throughout our trade territory as this NCFE service gets underway and expands. We consider the evolution into the air as a great compliment to our ground services. With the growing need for timely applications of fungicides, pesticides, CoRoN®, and other foliar nutrients, having our own aerial equipment is just one more way we can better serve customers. We’re not stopping there, however. To better cover customers next season, other ground-based
New Agronomist in Faulkton
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The newest NCFE agronomist uses his pickup as his office, and is enjoying every minute of it. “I am truly excited about this position,” says Adam Odden, who joined NCFE in August. “It’s already been a great fall, talking and working with customers.” Adam graduated from Adam Odden SDSU last May, with a business degree heavy on ag credits. He grew up in Lake Preston on a family farming and ranching operation. The family has since moved their cattle/ seedstock operation to Colome. Through high school and college, he also worked for Prairie Ag Partners, as an applicator and manager of their liquid facility. Even better, he’s actually going to have an office soon. Construction of a new Faulkton agronomy center begins later this fall. “It’s going to be great for Faulkton, for NCFE, and most of all, for producers. Customers will have access to a complete line of agronomy inputs and resources for their fields.” Fortunately for bull riders on several circuits, agronomy doesn’t completely fill his time. On weekends, you can often find this NCFE agronomist in rodeo arenas across the region, fighting bulls. s
upgrades are also underway, including the addition of four spreaders and two sprayers. We are also adding the necessary support equipment as well as upgrading some of our present machinery. We are increasing our blending capacity system-wide with the addition of five new high-capacity blenders, which will help feed the new machinery. Finally, a new 1-million-gallon liquid fertilizer tank is being installed at West Bowdle, which will more than double its current liquid capacity. New agronomy facilities are being built in Faulkton and Strasburg, with construction starting this fall. There is a lot going on, and we are excited about NCFE agronomy. Work closely with your NCFE agronomist this fall. Besides signing up for the Burgundy & Gold Program, we urge you to look at the prepay programs on glyphosate. We are expecting some slight chemical price increases, so now may be the time to buy with current flat pricing. Seed programs are also out, with the best terms of the season now available. Your sales agronomist will have test plot data available as harvest progresses and can also direct you to online results. s
Fertilizer Opportunities: Now Is the Time
This chart compares corn futures versus the gulf price of urea. You can see that fertilizer and corn have trended together, with a fairly strong correlation since 2006. But then during the fall of 2010, the gap widened significantly between the two. If corn holds strong, the opportunity is there for urea to move up considerably. Right now there are margin opportunities that are quite better for urea versus corn than in the previous 4 to 5 years. To take advantage of this market, NCFE is now offering excellent finance programs for both fall-applied fertilizer and spring fertilizer contracts. Ask your sales agronomist for more details about our cash-flow friendly financing options. s
Checking Tanks By Troy weig, Petroleum Manager
Fall is the time to do some fuel tank maintenance—don’t wait until it’s winter and well below zero. A few simple steps like these can help you avoid most of the more common cold-related weather problems: • Drain and remove all water and contaminants. • Replace fuel filters according to manufacturer’s recommendations. Give us a call with any questions about fuel, tanks, or fuel blends as we head into winter.
“Congratulations to NCFE energy specialists Steve Hinds, Ted Frederick, and Gerry Crawford.” I also want to congratulate NCFE Energy Specialists Steve Hinds, Ted Frederick, and Gerry Crawford. They were award winners in the Double Duty rewards program, selling 6,835 total new gallons of Cenex® lubricants. They were in the top three award levels, reflecting how more customers than ever before are relying on our oil to keep their equipment running. s
Feed to Rail Bus Tour
By Jarvis Haugeberg, General Manager, Dakotaland Feeds, LLC We hosted a very successful “Feed to Rail” tour on July 14. The conclusion and highlight of the day was a tour of the Northern Beef Packers (NBP) processing plant south of Aberdeen. NBP is expected to start operations later this fall. We wanted to introduce cattlemen to the plant, because we believe that NBP will help our producers be more successful by reducing shipping costs of fat cattle to market by $48 per head on the average. Additionally, we want to have a good relationship with others that provide services to cattlemen in our trade area, and we are very excited about the startup of the NBP plant, because we believe this plant will have a positive impact on area cattlemen. South Dakota Secretary of Agriculture Walt Bones attended the event and addressed the 350 guests. Secretary Bones used the opportunity to point out that the South Dakota Certified Beef program was still very pertinent and a great fit at this time with the start-up of the NBP plant this fall. Secretary Bones also cited statistics of a recently published study commissioned by the South Dakota Governor’s office of Economic Development. The study states that Aberdeen will become a boom town with NBP bringing $10 billion in economic growth to the area in the first five years. David Palmer, NBP CEO, addressed the group, detailing plans for the plant’s operation and answering questions. Mr. Palmer also introduced Mr. Oshik Song, General Partner of NPB, as well as representatives of companies that will purchase the product that the plant will produce.
He indicated these buyers are looking forward to being able to purchase products from cattle produced and harvested in South Dakota. The tours began with area beef producers touring Glacial Lakes Energy ethanol plant in Mina or the Advanced BioEnergy ethanol plant in Huron, loading two charter buses at each ethanol plant. The buses traveled to tour the Walter Feedlot of Conde. Horace Walter is a lifelong cattle feeder who recently built a new hoop barn, which is approximately a quarter mile long. The next stop was Marlin Nilsson’s newly constructed outdoor feedlot, which features poured bunks, extended concrete pads, a finely manicured set of mounds, and a backup water supply. The response to the “Feed to Rail” tour was very positive, with area cattle producers appreciating the opportunity to tour the ethanol plants, feedlots, and the NBP plant as well as hear from the NBP plant officials. s
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Known for Safety By Andy Clemen, Safety Coordinator
Earlier this summer, we held a grain-engulfment rescue demonstration in Hoven for the Hoven Fire Department. They purchased a Liberty Rescue Tube through NCFE, so we put on a full safety simulation of how to perform a rescue. We showed how to install the tube and rescue the victim, while keeping the first-responders safe. We recently also conducted safety trainings for the fire departments in Bowdle and Ipswich. With last year being the worst year ever for entrapment accidents, we can never do enough safety trainings. It’s gratifying, in fact, to be called on as a resource for safe grain-handling management and rescue procedures. We want to do all we can across the farms of the NCFE countryside and at our own grain facilities to ensure that we make the 2011 harvest the safest one ever. Don’t hesitate to call if you have any safety questions, need to borrow harnesses/lifelines, or have any comments or ideas that will help us in our quest to promote safety in our rural workplaces. s
Members of the Hoven Fire Department received training on the use of their new Liberty Rescue Tube.
Minimize Downtime With Service Work
By Steve Benning, Shop Manager
Harvest is nearly here. Call us for any lastminute service work that needs to be done on your equipment. Getting that out of the way now will help ensure that you can keep going straight through until your soybeans and corn are in the bins. I don’t talk enough about them, but our team of service technicians really sets our shop apart by minimizing downtime and providing top-notch diagnostic and repair work.
Just a few other shop reminders: The Leola tire truck has been updated. We continue to be a dealer for Shur-Co® tarp systems and also stock a full line of pickup accessories. If we don’t have what you want in stock we can also place the order for rapid fulfillment. Have a safe harvest from all of us in the shop. s
More Eating and Less Treating By Scott Kilber, Feed Specialist
We have a stress care product that will fit your operation, your calves, and your preferred nutrition program. All our feeds are researched and developed to stimulate the immune system and get them eating. Land O’Lakes Purina Feed has it right with their tagline: More eatin’ and less treatin’. Our feed starting programs are designed to:
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• Get cattle eating well. • Keep or get them healthy. It’s a tough business, starting cattle. The key, really, in getting cattle to eat well is to establish rumen fermentation. You’re not so much feeding the calf—you’re feeding the rumen. If we “feed” the rumen microbes and quickly get the rumen functioning optimally, we are a long way towards success and that great start. The stress care lineup has the components necessary for avoiding the digestive upsets that decrease rumen activity. Whether it’s tubs,
liquids, or our complete feeds, they all contain the necessary ionophores and minerals for optimal nutrition and health. They are also palatable, which will keep them coming back to the bunk. Good bunk management will pay off, especially in today’s marketplace. Also, as we transition into fall, we’ve got our 30-13 tubs for lateseason grazing of pasture, crop stubble, and corn stalks. Our final product? Our services. We can help you with rations and breakevens and help you formulate the best nutrition plan for your operation. s
our website for frequent updates and reminders about nutrition programs.
National Co-op Month October is National Cooperative Month. We think cooperatives make a big difference locally and in their own unique way are helping build a better world. Here at NCFE, that means supporting organizations like 4-H and Farm Rescue and teaming up with FFA in their Kids Against Hunger initiative, just to name a few. We reflect the giving spirit of our owner-members as a positive rural business out to make a difference across the NCFE countryside.
Supporting 4-H
Whether it’s a 4-Her working on his or her beef project or one giving a presentation, NCFE is an avid supporter of youth development through 4-H membership. This year we gave $5,500 to the county 4-H programs within our trade territory. s
Whitney Heupel is shown fitting her calf before heading into the show ring at McPherson County Achievement Days. Her brother Logan is helping, along with Alison Feickert. Whitney and Logan are the children of Leola employee Tammy Heupel and husband, Kevin.
Summer Interns
North Central Farmers Elevator had a remarkable group of interns working alongside staff members this summer. Besides learning through hands-on experience, these students also received scholarships to area schools in their pursuit of various agrelated degrees. Katie Nelson, an SDSU senior double majoring in animal science and dairy production, had this to say about her internship. “The experience was invaluable. I really enjoyed working with the producers and the employees,” said Katie, who worked from the Pollock/Strasburg locations. “I learned a lot about animal nutrition/management and the markets, as well as enhancing my people skills, all of which are so important.” Our intern team included: Cooper Bebo, Redfield; Tanner Int Veldt, Hague; Tyson Martinmaas, Highmore; Katie Nelson, Pollock; Laura Nieusma, Strasburg; Garrett Penfield, Ipswich; Justin P e r k i n s , Warner; Samantha Reimer, Java; Stetson Senyak, Bowdle; Tanner Sjomeling, Pollock; and Sheldon Weisbeck, Herreid. Contact your location for more information about our internship program. s
Cooper Bebo
Tanner Int Veldt
Tyson Martinmaas
Katie Nelson
Garret Penfield
Justin Perkins
Samantha Reimer
Stetson Senyak
Tanner Sjomeling
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D IR E C T O RY Bowdle West Terminal . . . 605-285-6533 Toll-Free . . . . . . . . . . . . . . 800-584-9286 In Town . . . . . . . . . . . . . . 605-285-6570 Craven . . . . . . . . . . . . . . . . 605-426-6591 Fertilizer . . . . . . . . . . . . . . 605-426-6535 Faulkton . . . . . . . . . . . . . . 605-598-6500 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 Strasburg, ND . . . . . . . . . . 701-336-7910 Sun Terminal . . . . . . . . . . . 605-426-6843 Warner Elevator . . . . . . . . 605-225-8247 Petroleum . . . . . . . . . . . . 605-225-9608 West Warner . . . . . . . . . . 605-225-7103 Wecota . . . . . . . . . . . . . . . 605-324-3200
BOARD of DIRECTORS Richard Osterday – Java, President Ken Olson, Jr. – Turton, Vice-President Quentin Larson – Pollock, Secretary Bryan Bauer – Mina Glenn Bode - Faulkton Mike Clements - Miller Lynn Deibert – Herreid Dale Gill – Java Derek Merkel – Leola Larry Olson – Ipswich Phillip Shanley – Warner Larry Vetch – Onaka
Our Mission: To excel at providing high-quality services and products that grow member and cooperative profitability and success.
PO Box 366 Ipswich, SD 57451
It’s a Burgundy & Gold Time of Year Lock down a good portion of your inputs now. The rebate qualifications are based on seed, chemical, and fertilizer purchases from NCFE. Contact your sales agronomist for more information. Remember: 2011 Burgundy & Gold checks are being distributed to customers, totaling $424,000. Earn your 2012 check by signing up now.
Burgundy Option Receive 1% back on your 2nd highest volume purchased and 2% back on your 3rd highest volume purchased. Example: Highest volume purchase: seed—$125,000 2nd highest volume purchase: fertilizer—$100,000 x 1% = $1,000 3rd highest volume purchase: chemical—$50,000 x 2% = $1,000 Total rebate check: $2,000
Gold Option Receive 1% back on your 2nd highest volume purchased and 4% on your 3rd highest volume purchased, with the 4% limited to your 2011-2012 season purchases of Precision Ag products and/or programs and soybean seed treatments (Cruiser Max Plus). Example: Highest volume purchase: seed—$125,000 2nd highest volume purchase: fertilizer—$100,000 x 1% = $1,000 3rd highest volume purchase: chemical—$50,000 x 4% = $2,000 Total Trilex 6000 purchases: $2,000 Total Precision Ag purchases: $2,000 Total rebate check: $3,000
Making History
New NCFE Office
By KEITH HAINY, General Manager
This fiscal year was historical for your cooperative, with a record-breaking $515 million in sales volume. Profits for the fiscal year are $9.055 million, before tax. This figure is after being reduced by the potential fine initially proposed by OSHA for the 2010 Warner accident. The last 4 months of the fiscal year saw huge volumes for the company, even with the very condensed spring. Volumes for this fiscal year compared to last year were: • Dry fertilizer tons: up 51% • Seed $: up 54% • Chemical $: up 46% • Spreading acres: up 95% • Spraying acres: up 41% • Diesel gallons: up 29% I am so proud of the accomplishments of our employees for their service
OCTOBE R 2011
VOLUME 17 • NUMBER 3
and role in these numbers as well as gratified by the support of patrons. Thank you for your patience again through such a challenging spring. As you will read in the agronomy article, we have increased capacity of the agronomy rolling stock and facilities. It is part of our continual drive to provide high-quality, timely service. Part of our challenge this spring was that we were short applicators to run our equipment. Normal springs would allow an applicator to get done spreading fertilizer and then jump into a sprayer. This year, everything happened at the same time, so we had equipment sitting. Know that we have aggressively sought to rectify this and are confident about all of our preparations for spring 2012. Other significant news in the NCFE agronomy department is the formation of NCFE Aerial LLC. Read more about this on page 4. We are truly excited about this venture and the service potential it should provide to customers.
Continued on page 2
See us on the web at www.ncfe.coop
New office construction is underway in Ipswich. The 100' x 140' building is going up just east of the farm store and is targeted for completion in February 2012. The $1.9 million facility will have muchneeded office space for employees along with a board room and training center. Half of the building’s financing is through the Rural Electric Economic Development, Inc. (REED) fund, which provides financing for community development projects that benefit rural areas. The architect is HKG, and the general contractor is Quest Construction, both from Aberdeen. s
Mark your calendars
The NCFE annual meeting is November 29 at the Father Borman Hall in Ipswich.
Nominating Committees for Director Vacancies
Historic Volumes Achieved Continued from page 1
Three director terms will expire at the November 29, 2011, annual meeting: Larry Vetch, Phillip Shanley, and Lynn Deibert. Director elections are conducted by mail ballot only. Patrons interested in running for the board, or submitting a director nomination, need to contact a nominating committee member from their district. The deadline for submitting candidates is October 20, 2011.
South District represented by Larry Vetch
Nominating committee members: • Bob Rusch 605-436-6221 • Dwight Vogel 605-447-5841
East District represented by Phillip Shanley
Nominating committee members: • Randy Kienow 605-229-0439 • Carey Nilsson 605-225-2202
Northwest District represented by Lynn Deibert
Nominating committee members: • Troy Beck 605-437-2949 • John Weist 605-437-2482
Call the NCFE farm store for your auger needs. We also have trailers and a complete line-up of your fall farming/ranching supplies and equipment.
NCFE Agronomy Team Matt Christopherson: 380-1238, Marketing Manager Lane Mielke: 380-4674, Sales Manager joel vetter: 380-9111, Seed Sales Manager Rick Arneseon: 216-1651, Warner Area Agronomist Bob Volk: 216-0086, Java/Bowdle Area Agronomist Brent Neiger: 216-4820, Ipswich Area Agronomist Tim Borge: 380-9749, Wecota/Onaka Area Agronomist Justin North: 216-6684, Leola/Bowdle Area Agronomist Greg Volk: 380-5430, Strasburg Agronomy Manager/Agronomist Tyler Kroupa: 680-4112, Lebanon Area Agronomist Dillon Baloun: 216-6380, Highmore Manager/Agronomist Lee Kolda: 377-4774, Miller Agronomy Manager/Agronomist Curtis Jandel: 216-7138, Precision Ag Specialist Bryce Weber: 701-336-4673, Hague Area Agronomist Sam Cramer: 380-0273, Northville/Redfield Area Agronomist Kevin Stark: 216-0292, Faulkton Agronomy Manager/Agronomist ADAM ODDEN: 203-1229, Faulkton Area Agronomist Chip King: 295-0461, Highmore Area Agronomist Wyatt Holsing: 216-5225, Miller Area Agronomist Bryce Nieger: 380-9751, Ipswich/Warner Area Agronomist
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Ask your agronomist how to add profit to your operation with the NCFE Burgundy & Gold Program.
©2011 North Central Farmers Elevator. All Rights Reserved.
We are distributing $424,000 worth of Burgundy & Gold checks. Read more about this program on page 8. Then talk to your local agronomist about how you can receive a check next year. At their August meeting, the Board of Directors looked at numerous ways to allocate the $9 million profit. They voted to use internally 100% of the domestic production activity deductible and take 100% bonus depreciation on 15-year depreciable assets. Patronage distribution will be $2.260 million, with 40% paid out in cash. By utilizing DPAD and the bonus depreciation, we will be placing $6.431 million into the capital reserve with an income tax liability of only $293,700. Being able to build NCFE’s capital reserves allows us to better serve our owners by using this money to improve assets for the future. The challenges of spring carried through to the trials of wheat harvest, which was extremely difficult because of quality issues. We tried to take care of our producers to the best of our ability as we handled their crop. We took some risk, but we can now say it all worked out. Our marketing and elevator personnel need to be commended for their role in handling the wheat and doing all they could for customers. The turning lane project at West Bowdle has been delayed until next spring. We are still waiting for DOT approval of the final plan. Even if approval were received today, it would be too late to safely begin construction during row crop harvest. Especially during this hectic time of year, always keep safety first. Your cooperative just received our MOD rating of .87 from the latest workman’s comp evaluation. This rating is incredible for this industry. We remain proud of our safety record but are certainly not complacent. We continue to always look for continual safety improvements. We’ll also keep you informed as we work our way through the OSHA citation process, which is close to being resolved. Thank you for your support this spring and summer. We will continue to do all we can to earn your business and be the kind of company that makes you proud, both as a customer and as an owner in your cooperative. s
Published in partnership with VistaComm® (www.VistaComm.com).
Marketing Plans at Harvest Time By Jeremy Vander Vorst, Benson-Quinn Branch Manager
Fall harvest is right around the corner, and most producers are shifting their focus on getting the crops off the field and into storage. Often when I talk with producers, I like to ask them if they are going to store the crop, haul it to the elevator, or just sell it right out of the field. For those of you who are going to store the crop, you should have a plan set in place to help you market the crop. The corn and winter wheat markets currently have carry in them. However, soybeans and spring wheat have very limited carry. The limited amount of carry is trying to entice producers to sell their grain now versus storing it over the winter. Producers who think the market will go higher after harvest could sell the grain and purchase call options to take advantage of higher prices in the future. In doing this, you would be able to avoid storage and interest charges. At 5% interest and 6¢/ bu. per month storage charges, it would cost you 11.5¢ /bu. per month. Call options are priced around 14¢ per month of ownership. However, selling the soybeans and buying the call option eliminates your downside risk if the markets were to fall. There are also ways to cheapen the call options and reduce your risk exposure. Currently, prices are at record high levels, and many producers are anticipating good yields in the NCFE territory. In recent weeks, many private forecasters have
The million dollar question is, “Can demand stay strong throughout the winter with prices at record high levels?” lowered the corn and soybean crops due to adverse weather conditions this summer. This has caused a run-up in prices to contract highs for many commodities. Prices of grain for 2012 are also at very attractive levels, and producers should be watching these prices closely. The million dollar question is, “Can demand stay strong throughout the winter with prices at record high levels?” New crop 2012 corn is near $6 cash, soybeans are near $13, and wheat is near $8.50. History tells us these are profitable levels. For those of you looking at locking in inputs for next year, you should also consider pricing a percentage of your expected production for 2012. I expect the markets to stay strong for the next few weeks as harvest starts, due to the poor yield results many are finding. From there on, forward world economies and demand will determine how high the markets can go. These two factors can change suddenly, so be prepared to make sales at these highly profitable levels. Call me at 877-893-0800 or stop by the West Bowdle terminal with any questions. s
The Wheat Harvest That Wasn’t
By MIKE NICKOLAS, Grain Manager
The most common words this past wheat harvest were 70-bushel straw and 35-to-40-bushel yields. Not only did we see poor yields across the NCFE territory, but we were also plagued with light test weight, damage, and vomitoxin. With reduced planted acres, poor yields, and quality issues, we were pleasantly surprised that we receipted more bushels than expected. Spring wheat receipts will settle out at over 5 million bushels, with an average protein of 15.5 and test weight of 58. Winter wheat receipts were 2.3 million bushels, with an average protein of 13 and 57 test weight.
Another disappointing aspect about this year’s crop was that nearly everyone had higher protein, thus the premiums disappeared very rapidly. With North Dakota also having higher protein, I do not see the premiums coming back anytime soon. I would like to think we did a pretty good job this harvest in accommodating most producers with their wheat harvest. There were only a few instances when we asked producers to not bring in the lightest test weight wheat. Then, after harvest we could better work with that type of wheat. Looking forward, we should see better basis levels as millers and exporters learn how to deal with this year’s quality issues. s
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Aerial LLC Formed
By Matt Christopherson, Agronomy Marketing Manager, and Lane Mielke, Sales Manager
NCFE agronomy is taking to the skies with the formation of NCFE Aerial LLC, which has bought two new Air Tractors to start the aviation fleet. A hanger is being constructed in Highmore as a base and for housing the planes. However, they can fly out of other airports throughout our trade territory as this NCFE service gets underway and expands. We consider the evolution into the air as a great compliment to our ground services. With the growing need for timely applications of fungicides, pesticides, CoRoN®, and other foliar nutrients, having our own aerial equipment is just one more way we can better serve customers. We’re not stopping there, however. To better cover customers next season, other ground-based
New Agronomist in Faulkton
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The newest NCFE agronomist uses his pickup as his office, and is enjoying every minute of it. “I am truly excited about this position,” says Adam Odden, who joined NCFE in August. “It’s already been a great fall, talking and working with customers.” Adam graduated from Adam Odden SDSU last May, with a business degree heavy on ag credits. He grew up in Lake Preston on a family farming and ranching operation. The family has since moved their cattle/ seedstock operation to Colome. Through high school and college, he also worked for Prairie Ag Partners, as an applicator and manager of their liquid facility. Even better, he’s actually going to have an office soon. Construction of a new Faulkton agronomy center begins later this fall. “It’s going to be great for Faulkton, for NCFE, and most of all, for producers. Customers will have access to a complete line of agronomy inputs and resources for their fields.” Fortunately for bull riders on several circuits, agronomy doesn’t completely fill his time. On weekends, you can often find this NCFE agronomist in rodeo arenas across the region, fighting bulls. s
upgrades are also underway, including the addition of four spreaders and two sprayers. We are also adding the necessary support equipment as well as upgrading some of our present machinery. We are increasing our blending capacity system-wide with the addition of five new high-capacity blenders, which will help feed the new machinery. Finally, a new 1-million-gallon liquid fertilizer tank is being installed at West Bowdle, which will more than double its current liquid capacity. New agronomy facilities are being built in Faulkton and Strasburg, with construction starting this fall. There is a lot going on, and we are excited about NCFE agronomy. Work closely with your NCFE agronomist this fall. Besides signing up for the Burgundy & Gold Program, we urge you to look at the prepay programs on glyphosate. We are expecting some slight chemical price increases, so now may be the time to buy with current flat pricing. Seed programs are also out, with the best terms of the season now available. Your sales agronomist will have test plot data available as harvest progresses and can also direct you to online results. s
Fertilizer Opportunities: Now Is the Time
This chart compares corn futures versus the gulf price of urea. You can see that fertilizer and corn have trended together, with a fairly strong correlation since 2006. But then during the fall of 2010, the gap widened significantly between the two. If corn holds strong, the opportunity is there for urea to move up considerably. Right now there are margin opportunities that are quite better for urea versus corn than in the previous 4 to 5 years. To take advantage of this market, NCFE is now offering excellent finance programs for both fall-applied fertilizer and spring fertilizer contracts. Ask your sales agronomist for more details about our cash-flow friendly financing options. s
Checking Tanks By Troy weig, Petroleum Manager
Fall is the time to do some fuel tank maintenance—don’t wait until it’s winter and well below zero. A few simple steps like these can help you avoid most of the more common cold-related weather problems: • Drain and remove all water and contaminants. • Replace fuel filters according to manufacturer’s recommendations. Give us a call with any questions about fuel, tanks, or fuel blends as we head into winter.
“Congratulations to NCFE energy specialists Steve Hinds, Ted Frederick, and Gerry Crawford.” I also want to congratulate NCFE Energy Specialists Steve Hinds, Ted Frederick, and Gerry Crawford. They were award winners in the Double Duty rewards program, selling 6,835 total new gallons of Cenex® lubricants. They were in the top three award levels, reflecting how more customers than ever before are relying on our oil to keep their equipment running. s
Feed to Rail Bus Tour
By Jarvis Haugeberg, General Manager, Dakotaland Feeds, LLC We hosted a very successful “Feed to Rail” tour on July 14. The conclusion and highlight of the day was a tour of the Northern Beef Packers (NBP) processing plant south of Aberdeen. NBP is expected to start operations later this fall. We wanted to introduce cattlemen to the plant, because we believe that NBP will help our producers be more successful by reducing shipping costs of fat cattle to market by $48 per head on the average. Additionally, we want to have a good relationship with others that provide services to cattlemen in our trade area, and we are very excited about the startup of the NBP plant, because we believe this plant will have a positive impact on area cattlemen. South Dakota Secretary of Agriculture Walt Bones attended the event and addressed the 350 guests. Secretary Bones used the opportunity to point out that the South Dakota Certified Beef program was still very pertinent and a great fit at this time with the start-up of the NBP plant this fall. Secretary Bones also cited statistics of a recently published study commissioned by the South Dakota Governor’s office of Economic Development. The study states that Aberdeen will become a boom town with NBP bringing $10 billion in economic growth to the area in the first five years. David Palmer, NBP CEO, addressed the group, detailing plans for the plant’s operation and answering questions. Mr. Palmer also introduced Mr. Oshik Song, General Partner of NPB, as well as representatives of companies that will purchase the product that the plant will produce.
He indicated these buyers are looking forward to being able to purchase products from cattle produced and harvested in South Dakota. The tours began with area beef producers touring Glacial Lakes Energy ethanol plant in Mina or the Advanced BioEnergy ethanol plant in Huron, loading two charter buses at each ethanol plant. The buses traveled to tour the Walter Feedlot of Conde. Horace Walter is a lifelong cattle feeder who recently built a new hoop barn, which is approximately a quarter mile long. The next stop was Marlin Nilsson’s newly constructed outdoor feedlot, which features poured bunks, extended concrete pads, a finely manicured set of mounds, and a backup water supply. The response to the “Feed to Rail” tour was very positive, with area cattle producers appreciating the opportunity to tour the ethanol plants, feedlots, and the NBP plant as well as hear from the NBP plant officials. s
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Known for Safety By Andy Clemen, Safety Coordinator
Earlier this summer, we held a grain-engulfment rescue demonstration in Hoven for the Hoven Fire Department. They purchased a Liberty Rescue Tube through NCFE, so we put on a full safety simulation of how to perform a rescue. We showed how to install the tube and rescue the victim, while keeping the first-responders safe. We recently also conducted safety trainings for the fire departments in Bowdle and Ipswich. With last year being the worst year ever for entrapment accidents, we can never do enough safety trainings. It’s gratifying, in fact, to be called on as a resource for safe grain-handling management and rescue procedures. We want to do all we can across the farms of the NCFE countryside and at our own grain facilities to ensure that we make the 2011 harvest the safest one ever. Don’t hesitate to call if you have any safety questions, need to borrow harnesses/lifelines, or have any comments or ideas that will help us in our quest to promote safety in our rural workplaces. s
Members of the Hoven Fire Department received training on the use of their new Liberty Rescue Tube.
Minimize Downtime With Service Work
By Steve Benning, Shop Manager
Harvest is nearly here. Call us for any lastminute service work that needs to be done on your equipment. Getting that out of the way now will help ensure that you can keep going straight through until your soybeans and corn are in the bins. I don’t talk enough about them, but our team of service technicians really sets our shop apart by minimizing downtime and providing top-notch diagnostic and repair work.
Just a few other shop reminders: The Leola tire truck has been updated. We continue to be a dealer for Shur-Co® tarp systems and also stock a full line of pickup accessories. If we don’t have what you want in stock we can also place the order for rapid fulfillment. Have a safe harvest from all of us in the shop. s
More Eating and Less Treating By Scott Kilber, Feed Specialist
We have a stress care product that will fit your operation, your calves, and your preferred nutrition program. All our feeds are researched and developed to stimulate the immune system and get them eating. Land O’Lakes Purina Feed has it right with their tagline: More eatin’ and less treatin’. Our feed starting programs are designed to:
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• Get cattle eating well. • Keep or get them healthy. It’s a tough business, starting cattle. The key, really, in getting cattle to eat well is to establish rumen fermentation. You’re not so much feeding the calf—you’re feeding the rumen. If we “feed” the rumen microbes and quickly get the rumen functioning optimally, we are a long way towards success and that great start. The stress care lineup has the components necessary for avoiding the digestive upsets that decrease rumen activity. Whether it’s tubs,
liquids, or our complete feeds, they all contain the necessary ionophores and minerals for optimal nutrition and health. They are also palatable, which will keep them coming back to the bunk. Good bunk management will pay off, especially in today’s marketplace. Also, as we transition into fall, we’ve got our 30-13 tubs for lateseason grazing of pasture, crop stubble, and corn stalks. Our final product? Our services. We can help you with rations and breakevens and help you formulate the best nutrition plan for your operation. s
our website for frequent updates and reminders about nutrition programs.
National Co-op Month October is National Cooperative Month. We think cooperatives make a big difference locally and in their own unique way are helping build a better world. Here at NCFE, that means supporting organizations like 4-H and Farm Rescue and teaming up with FFA in their Kids Against Hunger initiative, just to name a few. We reflect the giving spirit of our owner-members as a positive rural business out to make a difference across the NCFE countryside.
Supporting 4-H
Whether it’s a 4-Her working on his or her beef project or one giving a presentation, NCFE is an avid supporter of youth development through 4-H membership. This year we gave $5,500 to the county 4-H programs within our trade territory. s
Whitney Heupel is shown fitting her calf before heading into the show ring at McPherson County Achievement Days. Her brother Logan is helping, along with Alison Feickert. Whitney and Logan are the children of Leola employee Tammy Heupel and husband, Kevin.
Summer Interns
North Central Farmers Elevator had a remarkable group of interns working alongside staff members this summer. Besides learning through hands-on experience, these students also received scholarships to area schools in their pursuit of various agrelated degrees. Katie Nelson, an SDSU senior double majoring in animal science and dairy production, had this to say about her internship. “The experience was invaluable. I really enjoyed working with the producers and the employees,” said Katie, who worked from the Pollock/Strasburg locations. “I learned a lot about animal nutrition/management and the markets, as well as enhancing my people skills, all of which are so important.” Our intern team included: Cooper Bebo, Redfield; Tanner Int Veldt, Hague; Tyson Martinmaas, Highmore; Katie Nelson, Pollock; Laura Nieusma, Strasburg; Garrett Penfield, Ipswich; Justin P e r k i n s , Warner; Samantha Reimer, Java; Stetson Senyak, Bowdle; Tanner Sjomeling, Pollock; and Sheldon Weisbeck, Herreid. Contact your location for more information about our internship program. s
Cooper Bebo
Tanner Int Veldt
Tyson Martinmaas
Katie Nelson
Garret Penfield
Justin Perkins
Samantha Reimer
Stetson Senyak
Tanner Sjomeling
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D IR E C T O RY Bowdle West Terminal . . . 605-285-6533 Toll-Free . . . . . . . . . . . . . . 800-584-9286 In Town . . . . . . . . . . . . . . 605-285-6570 Craven . . . . . . . . . . . . . . . . 605-426-6591 Fertilizer . . . . . . . . . . . . . . 605-426-6535 Faulkton . . . . . . . . . . . . . . 605-598-6500 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 Strasburg, ND . . . . . . . . . . 701-336-7910 Sun Terminal . . . . . . . . . . . 605-426-6843 Warner Elevator . . . . . . . . 605-225-8247 Petroleum . . . . . . . . . . . . 605-225-9608 West Warner . . . . . . . . . . 605-225-7103 Wecota . . . . . . . . . . . . . . . 605-324-3200
BOARD of DIRECTORS Richard Osterday – Java, President Ken Olson, Jr. – Turton, Vice-President Quentin Larson – Pollock, Secretary Bryan Bauer – Mina Glenn Bode - Faulkton Mike Clements - Miller Lynn Deibert – Herreid Dale Gill – Java Derek Merkel – Leola Larry Olson – Ipswich Phillip Shanley – Warner Larry Vetch – Onaka
Our Mission: To excel at providing high-quality services and products that grow member and cooperative profitability and success.
PO Box 366 Ipswich, SD 57451
It’s a Burgundy & Gold Time of Year Lock down a good portion of your inputs now. The rebate qualifications are based on seed, chemical, and fertilizer purchases from NCFE. Contact your sales agronomist for more information. Remember: 2011 Burgundy & Gold checks are being distributed to customers, totaling $424,000. Earn your 2012 check by signing up now.
Burgundy Option Receive 1% back on your 2nd highest volume purchased and 2% back on your 3rd highest volume purchased. Example: Highest volume purchase: seed—$125,000 2nd highest volume purchase: fertilizer—$100,000 x 1% = $1,000 3rd highest volume purchase: chemical—$50,000 x 2% = $1,000 Total rebate check: $2,000
Gold Option Receive 1% back on your 2nd highest volume purchased and 4% on your 3rd highest volume purchased, with the 4% limited to your 2011-2012 season purchases of Precision Ag products and/or programs and soybean seed treatments (Cruiser Max Plus). Example: Highest volume purchase: seed—$125,000 2nd highest volume purchase: fertilizer—$100,000 x 1% = $1,000 3rd highest volume purchase: chemical—$50,000 x 4% = $2,000 Total Trilex 6000 purchases: $2,000 Total Precision Ag purchases: $2,000 Total rebate check: $3,000
