NORTH CENTRAL
North Central Farmers Elevator Solutions for Your Success
Our Greatest Resource By KEITH HAINY, General Manager
With the close of the 2010 fiscal year at the end of July, it’s a good time for evaluating performance. Profitability through the end of June was over $6 million. Considering the multiple weather challenges of this past year, we’re satisfied with that amount. Even though there was a reduction in acres planted across our trade territory, our agronomy division still achieved growth. There are other measures of performance, also. Obviously in a business like ours, it’s important to have the latest technologies, machinery, and other resources. But that really isn’t the driving force behind our continued success and growth, especially in a year like this. No, quite simply, it will always be about the people. Whether they’re the ones behind the counter, at the elevator, in the shop, driving the applicator, or out in the field helping with crop recommendations—our employees are the core of NCFE. In our recently completed customer survey, it was a message that could not be missed: our employee team received high marks from patrons for their
friendliness, accommodating ways, and their drive to provide the best possible service for customers. I’m extremely proud of this employee group and how they’ve established and value their rapport with you, our customers. It’s the NCFE performance difference—one that truly differentiates this cooperative from other ag product/service suppliers. There’s no doubt this is going to be another interesting time for your cooperative. Our analysis indicates that grain handle could experience an overall reduction of 15 million bushels of grain from lost production and PP acres. Top-end volumes are critical for meeting general expenses in today’s tightly margined marketplace. Yet our positives are many. For instance, besides agronomy, our petroleum division has not only held volumes together but has grown. This in an environment that has seen fuel departments in other companies struggle. A challenging time? Yes. But in times like these, it makes me value all the more our greatest resource of all: the people of NCFE, both customers and employees. Together we’ll harvest and plan…and plant again next spring. Thank you for your support. s
See us on the web at www.ncfe.coop
Augus t 2010
VOLUME 16 • NUMBER 3
New West Bowdle Manager
Shane Stout has been managing the West Bowdle location since the first of June. He is a 5th generation rancher’s son, growing up on a cow/calf operation near Meeker, CO. Most recently, Shane managed an ADM grain terminal in Louisiana. Shane and his wife, Charlene, are living in Bowdle. “We are both enjoying the small-town atmosphere again,” says Shane. With harvest now underway, Shane is eager to put the grain handling efficiencies of West Bowdle to work for NCFE patrons. s
Valuing Your Support
By Dave Dohman, Director of Operations
It’s harvest time across our trade territory, with winter wheat kicking off a season that won’t end until the last acres of corn are combined. We never take for granted the decision you make in delivering your grain to us and we greatly value your support. This past year, our entire employee group has worked together in leadership, team building, and service training. It’s part of our continual drive to be better at everything we do, whether it’s one-on-one out in the field, at the elevator unloading grain, or behind the desk working on your order. It’s important that our skills match your talent at producing grain. Thank you, once again, for your support of this cooperative. The NCFE fiscal year ended in July. We are already working on expenditures for the 2010/2011 year, with a focus on projects that provide greater ease of use for customers, along with improved services and efficiencies. Here’s a rundown on this summer’s construction projects: West Bowdle: Construction of a 10,000-bushel-an-hour dryer, 250,000-bushel wet bin, and 20,000-bushel third dump area is underway. The bin is completed and the dryer is going up now. Roadwork for the project is on track and should be ready for row crop harvest. Lebanon: The new office/grain grading building is just about completed. The seed warehouse and chemical storage facility is nearing completion, with diking and load pads finished.
Truck scale upgrades: Four 120-foot truck scales are now in place at Herreid; Hague, ND; Lebanon; and Northville. Gamet-automated grain probes are also being installed at those sites in conjunction with the scales. West Warner: Concrete has been poured and overhead loadout tanks will be installed with a 15,000-bushel screener. Completion date is targeted for the first of September. Craven: The 10,000-bushel dryer, 250,000-bushel wet bin, and 20,000-bushel dump with leg are on track for an early November completion. The 20,000-bushel transfer leg tower will be completed by Aug. 10. This will allow fast dumping at pit #5 during shuttle loading of a non-like commodity. Northville: The office and probe shack is being built and will be moved into as soon as possible. It will be business-as-usual until switchover day. Roads are currently being built, which will enhance traffic flow and allow us more staging room. The conveyor project has been completed, which allows us to dump wet commodity at both pits to increase speed of dumping for our producers. Sun Terminal: We have completed the concrete work, conveyor, towers, and center air system on a 1.5-million-bushel 320-foot diameter piling area. Fly ash (a coal burning byproduct), roadwork, and drainage are all that remains to be finished in the next month. Pile enhancements: We will be putting down fly ash on pile areas at Sun Terminal, Northville, Warner, and Lebanon. s
NCFE Agronomy Team Matt Christopherson: 380-1238, Marketing manager Lane Mielke: 380-4674, 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, Herreid/Pollock area agronomist Jesse Frost: 216-7824, Lebanon area agronomist Dillon Baloun: 216-6380, Highmore area agronomist Lee Kolda: 377-4774, Highmore/Miller area agronomist Curtis Jandel: 216-7138, Precision Ag specialist Colby Tolk: 216-6060, Miller agronomy manager/agronomist Evan Salverson: 649-6291, Java area agronomist Bryce Weber: 701-336-4673, Hague area agronomist Sam Cramer: 380-0273, Northville/Redfield area agronomist
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Ask your agronomist how to add harvest value with the NCFE Burgundy & Gold Program. ©2010 North Central Farmers Elevator. All Rights Reserved.
Published in partnership with VistaComm® (www.VistaComm.com).
Creep Feeding Still Pays
By Roxanne Knock, PhD, Nutritional-Technical Specialist, Dakotaland Feeds, LLC Cows and calves are out on grass and things are looking up. As the grazing season continues, there are a number of reasons why creep feeding will pay off for you this year. There are definite differences in creep feeds. When you are supplementing calves on pasture, they are beginning to digest forage. Utilizing a high-fiber creep feed will help boost gains without compromising the digestibility of the grass they are already consuming. Some creep feeds are high in starch and some producers put out grain mixes. When the calves consume these highstarch feeds, digestion of the grass they consume is decreased, and it takes more feed for the calf to put on a pound of gain than if they had a fiber-based supplement or none at all. Conversion of fiber-based creep to pounds of gain is going to be much better than the conversion of a starch-based feed to pounds of gain. Even if the starch-based feed is cheaper per ton, your cost of additional gain can be much greater. It is also important to weigh the other benefits of using a commercial creep feed, such as improved bloat protection compared to grain mixes, trace mineral inclusion to improve immune status, ease of weaning, and the option to included feed additives like Bovatec,® Aureomycin,® or Rumensin® to improve feed efficiency and control other potential health issues in the calves. The combination of Aureomycin and Bovatec in the high-fiber creep feed has been excellent for calf health and gains and is our recommended creep to start calves on. Switching to a Rumensin-containing creep (called Step 1) later season when intakes start to pick up will help control consumption and improve feed efficiency.
Calves are better converters of feed to gain when they are young, and so putting out the creep feed early will have the greatest bang for the buck. However, that also means calves should be weaned before consumption gets to 10 or 12 lbs/hd/d. The University of Illinois investigated the length of time prior to weaning on creep feed conversions and found that better conversion occurred when the calves had access to creep feed for at least 56 days prior to weaning at 205 days of age (compared to 28 or 84 days). If you are considering creep feeding only some of your calves, the calves out of the first- and second-calf heifers and calves out of the older cows are going to be the top candidates. By supplying these calves with creep feed, you bridge the gap that milk and grass alone cannot meet and you supply the nutrients that the calves need to grow. Also, by providing creep feed to these calves, your calf crop should be more uniform because these calves are not falling behind. You should also consider early weaning these calves to lower the cows’ nutrient requirements and allow them to put on body condition prior to winter and next calving season. It is also important to note a few other things on management with creep feeders. First, check them periodically and clean the fines out of the trough. Don’t let the feeders run empty. Check the feeders and call before they are empty. At the end of the summer, do not pull the feeder into the dry lot to ‘empty it out.’ It is not a complete feed and there are other feeds that are suited to that situation if that is what you want to do. Weaned calves that finally decide to quit bawling and go eat are prime candidates to overeat. Creep feeding will boost your gains, and if feeders are managed effectively, it appears that creep feeding will pay dividends this year. If you have any questions about using creep feed, please contact me or your Dakotaland Feeds Livestock Production Specialist. s
Livestock Nutrient Management Plans By Jon Gilbert, Chief Operating Officer, Prescription Agronomics We continue to be a resource for helping livestock producers with their nutrient management plans. If you would like more information, including just who needs them or what services we offer, please don’t hesitate to call. We can help you create a system that not only meets regulatory requirements but also helps you obtain nutrient benefits from your livestock operation. We are already currently helping many producers with
individualized nutrient management plans. Some of the services we offer include: • Record keeping for state inspections. • Land application rate determinations. • Spreader calibrations. • Preparation work for annual record examinations by NRCS and DENR. • Soil and manure sampling. s
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Market News
By Jeremy Vander Vorst, Benson-Quinn Branch Manager Wheat harvest is underway, and commodity prices in general have appreciated since May. The price jump has made them attractive for producers who need to market old crop grain to make room for the upcoming harvest. New crop prices have also reached attractive levels that warrant sales. The wheat market is the focus on many producers’ minds. Prices are higher than they have been throughout the winter. The last time wheat prices were at these levels was way back in January. New crop cash spring wheat is back over $5, which may be an area where some new crop wheat should be sold. The markets are currently offering a large amount of carry from one month to the next. This tells us that the market wants us to store wheat and sell it later in the marketing year. Currently, there is a 34 ct carry from September to March in spring wheat. For example, September 2010 spring wheat futures are $6.40 and March 2011 spring wheat futures are $6.74. Winter wheat has a 35 ct carry from September to March. Keep a close watch on these carry spreads throughout harvest. Recently, corn also rallied to price levels not seen since early March. New crop prices are approaching $4 futures, which has often been a very attractive price to start making sales. Prices have been helped out by better ethanol demand, less acres than expected, and higher feed use. If the weather turns hot and dry late this summer, prices could run up to contract highs (4.50) on December 2010 futures. For those concerned about prices appreciating, call options are a viable price protection plan. In mid-to-late July, December corn futures were trading at $3.95. December $4 calls are
trading at 25 ct/bushel. An alternative strategy that is less expensive and still gives the producer price protection would be to execute a call spread. This is done by purchasing a $4 call and selling a $4.50 call. This can be done for a premium of 12 ct/bushel. Soybean prices have experienced a moderate price increase in recent weeks. Weather and strong exports have been the main driver in moving prices higher. Old crop soybean stocks are relatively tight, which makes it crucial that the U.S. raises a large crop this year. Many forecasters are predicting a ridge to develop in the Midwest later this summer. This development has to be watched closely. With this threat in mind, producers should look at locking in new crop prices by possibly purchasing a put option. Put options give you the opportunity to take advantage of rallies, while also providing downside protection. Cattle futures have made a turnaround recently and are approaching resistance on many months. Packers have been aggressive killing cattle, and this has helped many feedlots stay current. Also, beef exports increased 27% compared to last May. New crop feeder cattle prices are approaching $114, a sales level producers should look at for a portion of their new crop calves. Please call or stop by the West Bowdle terminal with questions. My number is 877-893-0800. s
New crop prices have also reached attractive levels that warrant sales.
More Ethanol Than Ever By Troy weig, Petroleum Manager
We will soon have two ethanol blender pumps in our system. They are being installed at Warner and Leola. The pumps will have these choices available: • Unleaded • 10% ethanol • Two more blends like E-30 or E-50 • E-85 Additionally, our fuel services are expanding to Aberdeen. An NCFE cardtrol system will be located at 811 3rd Avenue SE, right near the Avera complex. This unmanned facility will have these fuels available: unleaded, 10% ethanol, highway fuel, and dyed diesel fuel. A great benefit to this station will be that you can use your NCFE fuel card or, of course, your credit card. So enjoy the convenience of our new pumps and use ethanol: it’s our own renewable homegrown fuel that creates U.S. jobs, reduces carbon emissions, and helps strengthen national security. s
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Shop News
By Steve Benning, Shop Manager It’s not always all work here at the shop. Sometimes we get to spread around a little fun for others. That was the case earlier this summer. With the support of NCFE, I gave pontoon rides around Mina Lake to campers that attended Camp Dream-Makers. This picture was taken as we were getting everybody outfitted with lifejackets. I’m not sure who enjoyed the ride more: me or the campers. It’s always gratifying getting to do something like this. It’s also great to be part of a work culture that places high value on community involvement. In other shop news, we have geared up for harvest. If you need any work done on your trucks and machinery during this
busy time, our shop has a talented team of mechanics. Don’t forget we also run tire trucks out of Ipswich and Warner. s
Fermentation Is Key By Scott Kilber, Feed Specialist
What does it take to make good silage? It starts with quality forage, harvested at the proper time. Other crucial steps include being packed well, quick fermentation, and covering the pile. NCFE can help by providing a high-quality silage inoculant like BioMax 5 and heavy-duty silage tarps for covering your pile. The key step is fermentation. Everything we do with putting up silage revolves around improving fermentation. Fermentation burns off the oxygen that is left in the pile, which is why it’s so important to achieve a good hard pack for removing as much air as possible. As a pile ferments, it generates heat, which is burning up nutrients and dry matter. That dry matter and nutrient loss is money lost and can also cost you down the road with reduced cattle performance. By speeding up the fermentation process with inoculants like BioMax 5, we can reduce the amount of heat produced and reduce nutrient and dry matter loss. Research shows an average dry matter loss reduction of about 5%. At a value of $30/ton, that’s a $1.50/ton savings. After you have built your silage pile and it has fermented properly, protect it from the elements by covering it with a heavy-duty silage tarp. We have a variety of lengths and widths to fit your pile. Contact your local NCFE location for BioMax 5 and silage tarps. s
Everything we do with putting up silage revolves around improving fermentation.
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Reduced Grain Handle Expected By MIKE NICKOLAS, Grain Manager
Earlier this season when it became apparent that incessant spring rains were disrupting normal planting operations, we began surveying board members, managers, and customers across our trade territory. We needed to come up with an estimate of how this was affecting planting acres, especially across our eastern trade territory. The result of our survey was an estimated decrease of up to 15 million bushels of grain for this coming year. The majority of the shortfall will be corn, where we could expect to see a 10 million bushel decrease in corn handle. We are also expecting about 3.5 million less bushels of soybeans, or a 20% reduction. Finally, depending on yields, wheat volumes could be down about 2 million bushels. Most of this reduction comes from the eastern side of our trade territory, where planting was most affected. We had already been expecting reduced wheat volumes just from initial planting intentions that showed more acres going to corn and soybeans this year. Certainly this is going to create some challenges for your cooperative and you, too, as we all cope with the effects from such a difficult planting season. Marketing-wise, we will be holding onto as much corn as possible to meet local ethanol demand, so we will not be exporting nearly as much corn out of our trade territory this year.
We will still continue with upcoming capital expenditure projects that include enhancements and upgrades to various grain handling facilities. While there may be less grain in the country this year, we’re confident that the acres lost to weather this year will once again be put in production for coming years. We greatly appreciate your business and look forward to getting you the most value possible for your grain. s
Delayed Price Program Spring and winter wheat: 5¢/bu./mo. DP space may be more limited this year because of old crop corn deliveries. DP charges will be calculated the same as in past years: 15 days free from average unload date of each assembly sheet. If not priced within 15 days, DP charges will be calculated from average unload date. Note: The title of grain passes to the elevator when grain is delivered on DP. Pricing of grain off of DP will be based on the current day’s market. DP cannot be applied to contracts for future delivery periods.
Watching for Vomitoxin The prolonged wet periods earlier in this season favored spotty development of fungal diseases in wheat. Wheat scab has been found in a few locations across the NCFE trade territory. Because of this, we will be testing for vomitoxin in wheat deliveries. Harvest discounts for affected wheat will be applied.
Planning Ahead
By Matt Christopherson, Agronomy Marketing Manager, and Lane Mielke, Sales Manager
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Planning ahead can help to increase the profitability of your operation. If you are making 2011 crop sales, make sure to take a look at fertilizer contracting options to go along with those sales and lock in a profit margin. Our Horsch Anderson units are ready to be booked for fall acres. We’ve got multiple units available to meet
demand. Their one-pass application can save time and money in the spring. Other items to stay in touch about include: • Management of prevented plant acres. • Fall phosphorus and potassium applications (perfect time of year to do this). • Burndown products and application work. • Soil sampling for 2011. Finally, here’s another good reason to call your local agronomist or location manager: we’ve got test plots located across the NCFE countryside. They can provide you with information and directions to the nearest plot. s
Monitoring Grain Bin Air
By Andy Clemen, Safety Coordinator
We’ve just purchased an additional two new gas monitors for testing the air inside confined space entries like grain bins. The monitors are necessary, because the most basic element of safety is to never trust your own senses for determining if the air in a confined space is safe for human occupancy. Never. If a grain bin needs to be entered for repair or cleaning, a reading must be taken. The monitors immediately identify oxygen-deficient spaces of less than 19.5% available oxygen. They also monitor CO2 and H2S levels. The monitors
are located at West Warner, Craven, West Bowdle, Lebanon, Pollock, and at the Prescription Ag facility. We also keep one here at the Ipswich office for training purposes. Confined spaces are, tragically, a factor in occupational deaths every year. We continually train our employees to ensure proper safety procedures are followed every time an entry must be made. Whether it’s here at the co-op or home on the farm, you may have entered a confined space a hundred times before without incident. But never let your safety guard down for an instant, or that last entry could be your final one. We’ve also purchased another Liberty Rescue Tube. This one is for our western territory. It is currently located out of the NCFE office in Java. Fire department volunteers from Java and Selby recently went through grain entrapment training rescue, with Leola and Bowdle members to be trained in late August. Please don’t hesitate to call if you have any questions about safety on your own operation. Just a reminder with harvest underway: we have harnesses/lifelines available for short-term loan out to any customer. s
Earning Your Business By Colby Tolk, Miller Agronomy Manager/Agronomist
At NCFE we take pride in going the extra mile to earn your trust and business. Here are a few items that could make an important difference in crop performance this year and next. With wheat harvest underway, it’s important to already be planning next year’s crop rotations. Consider soil sampling now to determine the best avenue for profitability on the acre. We can serve your needs for soil probing with geo-reference, with a timely turn-around of results for fall applications. Our broad spectrum of sampling techniques include standard overviews of fields all the way to site-specific VRT zones. Our soil sampling services are complemented with fall application. By having a plan in place early, adjustments can be made more easily, and you won’t feel rushed into making last-minute deadline decisions. Additionally, it’s important to keep wheat stubble and PP acres free of this year’s strong weed pressures. We have many glyphosate products and the special additives that go with them to get good, lasting kills. It’s also time to start thinking about winter wheat seed.
For your maturing crops, there are still some opportunities for improving yields or at least holding on to what is out there. It all begins with the plant itself. Because of so much early moisture, it’s vital we are watching for disease. The simple use of fungicide can be an advantage to your yield. Plant tissue samples can also be taken to see what micro or macro nutrients may be lacking. The excess moisture we received dramatically increases the risk of disease. We need to keep the plant as healthy as possible to fight off pathogens. Using micronutrients and foliar feedings can positively impact your bottom line. Most can be tankmixed with any glyphosate product. We strongly encourage the use of tissue sampling for added results in your profit center. Our agronomists can help with any of these services. They all would be glad to meet you at your local NCFE branch location, stop out at your farm, or are readily available by cell phone. As always, we thank you for your patronage and look forward to serving you in the future. s
Please Welcome... NCFE has another new agronomist. Sam Cramer joined the NCFE agronomy team earlier this summer. He will cover a customer base that extends from Northville to Redfield. Sam is an SDSU agronomy graduate. He grew up in Colman and now calls Redfield home. Call Sam at 380-0273 for crop scouting or to visit about any agronomyrelated service. He is looking forward to bringing NCFE agronomy services to this area.
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D IRECTORY 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 Bowdle . . . . . . . . . . . . . . . 605-285-6533 Toll-Free . . . . . . . . . . . . . . 800-584-9286 Petroleum . . . . . . . . . . . . 605-285-6570 Craven . . . . . . . . . . . . . . . . 605-426-6591 Fertilizer . . . . . . . . . . . . . . 605-426-6535 Hague, ND . . . . . . . . . . . . . 701-336-4673 Herreid . . . . . . . . . . . . . . . 605-437-2744 Toll-Free . . . . . . . . . . . . . . 888-437-2744 Petroleum . . . . . . . . . . . . 605-437-2415 Highmore . . . . . . . . . . . . . 605-852-2558 Java . . . . . . . . . . . . . . . . . . 605-649-6291 Petroleum . . . . . . . . . . . . 605-649-6241 Lebanon . . . . . . . . . . . . . . . 605-768-9465 Leola . . . . . . . . . . . . . . . . . 605-439-3137 Petroleum . . . . . . . . . . . . 605-439-3147 Miller . . . . . . . . . . . . . . . . . 605-853-2351 Miller Oilseed Processing . 605-853-0260 Sun Terminal . . . . . . . . . . . 605-426-6843 Northville . . . . . . . . . . . . . 605-887-3441 Onaka . . . . . . . . . . . . . . . . 605-447-5803 Pollock . . . . . . . . . . . . . . . . 605-889-2321 Warner Elevator . . . . . . . . 605-225-8247 Petroleum . . . . . . . . . . . . 605-225-9608 Wecota . . . . . . . . . . . . . . . 605-324-3200
BOARD of DIRECTORS Richard Osterday – Java, President Larry Vetch – Onaka, Vice-President Quentin Larson – Pollock, Secretary 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
Just in Time for Harvest By Mike Geditz, NCFE Farm Store
We’ve got a large supply of augers available at the Farm Store. Just give us a call and we’ll put your name on one. The pink Traeger® grill is still available, along with their more conventional grills. We stock a great supply of wood pellets for the best grilling experience ever. Also, with so much new fence being built because of all the water, we have a very good supply of wood posts on hand. As always, stop by the Farm Store when you’re going through Ipswich. It’s always great to meet customers. s
Our Greatest Resource By KEITH HAINY, General Manager
With the close of the 2010 fiscal year at the end of July, it’s a good time for evaluating performance. Profitability through the end of June was over $6 million. Considering the multiple weather challenges of this past year, we’re satisfied with that amount. Even though there was a reduction in acres planted across our trade territory, our agronomy division still achieved growth. There are other measures of performance, also. Obviously in a business like ours, it’s important to have the latest technologies, machinery, and other resources. But that really isn’t the driving force behind our continued success and growth, especially in a year like this. No, quite simply, it will always be about the people. Whether they’re the ones behind the counter, at the elevator, in the shop, driving the applicator, or out in the field helping with crop recommendations—our employees are the core of NCFE. In our recently completed customer survey, it was a message that could not be missed: our employee team received high marks from patrons for their
friendliness, accommodating ways, and their drive to provide the best possible service for customers. I’m extremely proud of this employee group and how they’ve established and value their rapport with you, our customers. It’s the NCFE performance difference—one that truly differentiates this cooperative from other ag product/service suppliers. There’s no doubt this is going to be another interesting time for your cooperative. Our analysis indicates that grain handle could experience an overall reduction of 15 million bushels of grain from lost production and PP acres. Top-end volumes are critical for meeting general expenses in today’s tightly margined marketplace. Yet our positives are many. For instance, besides agronomy, our petroleum division has not only held volumes together but has grown. This in an environment that has seen fuel departments in other companies struggle. A challenging time? Yes. But in times like these, it makes me value all the more our greatest resource of all: the people of NCFE, both customers and employees. Together we’ll harvest and plan…and plant again next spring. Thank you for your support. s
See us on the web at www.ncfe.coop
Augus t 2010
VOLUME 16 • NUMBER 3
New West Bowdle Manager
Shane Stout has been managing the West Bowdle location since the first of June. He is a 5th generation rancher’s son, growing up on a cow/calf operation near Meeker, CO. Most recently, Shane managed an ADM grain terminal in Louisiana. Shane and his wife, Charlene, are living in Bowdle. “We are both enjoying the small-town atmosphere again,” says Shane. With harvest now underway, Shane is eager to put the grain handling efficiencies of West Bowdle to work for NCFE patrons. s
Valuing Your Support
By Dave Dohman, Director of Operations
It’s harvest time across our trade territory, with winter wheat kicking off a season that won’t end until the last acres of corn are combined. We never take for granted the decision you make in delivering your grain to us and we greatly value your support. This past year, our entire employee group has worked together in leadership, team building, and service training. It’s part of our continual drive to be better at everything we do, whether it’s one-on-one out in the field, at the elevator unloading grain, or behind the desk working on your order. It’s important that our skills match your talent at producing grain. Thank you, once again, for your support of this cooperative. The NCFE fiscal year ended in July. We are already working on expenditures for the 2010/2011 year, with a focus on projects that provide greater ease of use for customers, along with improved services and efficiencies. Here’s a rundown on this summer’s construction projects: West Bowdle: Construction of a 10,000-bushel-an-hour dryer, 250,000-bushel wet bin, and 20,000-bushel third dump area is underway. The bin is completed and the dryer is going up now. Roadwork for the project is on track and should be ready for row crop harvest. Lebanon: The new office/grain grading building is just about completed. The seed warehouse and chemical storage facility is nearing completion, with diking and load pads finished.
Truck scale upgrades: Four 120-foot truck scales are now in place at Herreid; Hague, ND; Lebanon; and Northville. Gamet-automated grain probes are also being installed at those sites in conjunction with the scales. West Warner: Concrete has been poured and overhead loadout tanks will be installed with a 15,000-bushel screener. Completion date is targeted for the first of September. Craven: The 10,000-bushel dryer, 250,000-bushel wet bin, and 20,000-bushel dump with leg are on track for an early November completion. The 20,000-bushel transfer leg tower will be completed by Aug. 10. This will allow fast dumping at pit #5 during shuttle loading of a non-like commodity. Northville: The office and probe shack is being built and will be moved into as soon as possible. It will be business-as-usual until switchover day. Roads are currently being built, which will enhance traffic flow and allow us more staging room. The conveyor project has been completed, which allows us to dump wet commodity at both pits to increase speed of dumping for our producers. Sun Terminal: We have completed the concrete work, conveyor, towers, and center air system on a 1.5-million-bushel 320-foot diameter piling area. Fly ash (a coal burning byproduct), roadwork, and drainage are all that remains to be finished in the next month. Pile enhancements: We will be putting down fly ash on pile areas at Sun Terminal, Northville, Warner, and Lebanon. s
NCFE Agronomy Team Matt Christopherson: 380-1238, Marketing manager Lane Mielke: 380-4674, 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, Herreid/Pollock area agronomist Jesse Frost: 216-7824, Lebanon area agronomist Dillon Baloun: 216-6380, Highmore area agronomist Lee Kolda: 377-4774, Highmore/Miller area agronomist Curtis Jandel: 216-7138, Precision Ag specialist Colby Tolk: 216-6060, Miller agronomy manager/agronomist Evan Salverson: 649-6291, Java area agronomist Bryce Weber: 701-336-4673, Hague area agronomist Sam Cramer: 380-0273, Northville/Redfield area agronomist
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Ask your agronomist how to add harvest value with the NCFE Burgundy & Gold Program. ©2010 North Central Farmers Elevator. All Rights Reserved.
Published in partnership with VistaComm® (www.VistaComm.com).
Creep Feeding Still Pays
By Roxanne Knock, PhD, Nutritional-Technical Specialist, Dakotaland Feeds, LLC Cows and calves are out on grass and things are looking up. As the grazing season continues, there are a number of reasons why creep feeding will pay off for you this year. There are definite differences in creep feeds. When you are supplementing calves on pasture, they are beginning to digest forage. Utilizing a high-fiber creep feed will help boost gains without compromising the digestibility of the grass they are already consuming. Some creep feeds are high in starch and some producers put out grain mixes. When the calves consume these highstarch feeds, digestion of the grass they consume is decreased, and it takes more feed for the calf to put on a pound of gain than if they had a fiber-based supplement or none at all. Conversion of fiber-based creep to pounds of gain is going to be much better than the conversion of a starch-based feed to pounds of gain. Even if the starch-based feed is cheaper per ton, your cost of additional gain can be much greater. It is also important to weigh the other benefits of using a commercial creep feed, such as improved bloat protection compared to grain mixes, trace mineral inclusion to improve immune status, ease of weaning, and the option to included feed additives like Bovatec,® Aureomycin,® or Rumensin® to improve feed efficiency and control other potential health issues in the calves. The combination of Aureomycin and Bovatec in the high-fiber creep feed has been excellent for calf health and gains and is our recommended creep to start calves on. Switching to a Rumensin-containing creep (called Step 1) later season when intakes start to pick up will help control consumption and improve feed efficiency.
Calves are better converters of feed to gain when they are young, and so putting out the creep feed early will have the greatest bang for the buck. However, that also means calves should be weaned before consumption gets to 10 or 12 lbs/hd/d. The University of Illinois investigated the length of time prior to weaning on creep feed conversions and found that better conversion occurred when the calves had access to creep feed for at least 56 days prior to weaning at 205 days of age (compared to 28 or 84 days). If you are considering creep feeding only some of your calves, the calves out of the first- and second-calf heifers and calves out of the older cows are going to be the top candidates. By supplying these calves with creep feed, you bridge the gap that milk and grass alone cannot meet and you supply the nutrients that the calves need to grow. Also, by providing creep feed to these calves, your calf crop should be more uniform because these calves are not falling behind. You should also consider early weaning these calves to lower the cows’ nutrient requirements and allow them to put on body condition prior to winter and next calving season. It is also important to note a few other things on management with creep feeders. First, check them periodically and clean the fines out of the trough. Don’t let the feeders run empty. Check the feeders and call before they are empty. At the end of the summer, do not pull the feeder into the dry lot to ‘empty it out.’ It is not a complete feed and there are other feeds that are suited to that situation if that is what you want to do. Weaned calves that finally decide to quit bawling and go eat are prime candidates to overeat. Creep feeding will boost your gains, and if feeders are managed effectively, it appears that creep feeding will pay dividends this year. If you have any questions about using creep feed, please contact me or your Dakotaland Feeds Livestock Production Specialist. s
Livestock Nutrient Management Plans By Jon Gilbert, Chief Operating Officer, Prescription Agronomics We continue to be a resource for helping livestock producers with their nutrient management plans. If you would like more information, including just who needs them or what services we offer, please don’t hesitate to call. We can help you create a system that not only meets regulatory requirements but also helps you obtain nutrient benefits from your livestock operation. We are already currently helping many producers with
individualized nutrient management plans. Some of the services we offer include: • Record keeping for state inspections. • Land application rate determinations. • Spreader calibrations. • Preparation work for annual record examinations by NRCS and DENR. • Soil and manure sampling. s
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Market News
By Jeremy Vander Vorst, Benson-Quinn Branch Manager Wheat harvest is underway, and commodity prices in general have appreciated since May. The price jump has made them attractive for producers who need to market old crop grain to make room for the upcoming harvest. New crop prices have also reached attractive levels that warrant sales. The wheat market is the focus on many producers’ minds. Prices are higher than they have been throughout the winter. The last time wheat prices were at these levels was way back in January. New crop cash spring wheat is back over $5, which may be an area where some new crop wheat should be sold. The markets are currently offering a large amount of carry from one month to the next. This tells us that the market wants us to store wheat and sell it later in the marketing year. Currently, there is a 34 ct carry from September to March in spring wheat. For example, September 2010 spring wheat futures are $6.40 and March 2011 spring wheat futures are $6.74. Winter wheat has a 35 ct carry from September to March. Keep a close watch on these carry spreads throughout harvest. Recently, corn also rallied to price levels not seen since early March. New crop prices are approaching $4 futures, which has often been a very attractive price to start making sales. Prices have been helped out by better ethanol demand, less acres than expected, and higher feed use. If the weather turns hot and dry late this summer, prices could run up to contract highs (4.50) on December 2010 futures. For those concerned about prices appreciating, call options are a viable price protection plan. In mid-to-late July, December corn futures were trading at $3.95. December $4 calls are
trading at 25 ct/bushel. An alternative strategy that is less expensive and still gives the producer price protection would be to execute a call spread. This is done by purchasing a $4 call and selling a $4.50 call. This can be done for a premium of 12 ct/bushel. Soybean prices have experienced a moderate price increase in recent weeks. Weather and strong exports have been the main driver in moving prices higher. Old crop soybean stocks are relatively tight, which makes it crucial that the U.S. raises a large crop this year. Many forecasters are predicting a ridge to develop in the Midwest later this summer. This development has to be watched closely. With this threat in mind, producers should look at locking in new crop prices by possibly purchasing a put option. Put options give you the opportunity to take advantage of rallies, while also providing downside protection. Cattle futures have made a turnaround recently and are approaching resistance on many months. Packers have been aggressive killing cattle, and this has helped many feedlots stay current. Also, beef exports increased 27% compared to last May. New crop feeder cattle prices are approaching $114, a sales level producers should look at for a portion of their new crop calves. Please call or stop by the West Bowdle terminal with questions. My number is 877-893-0800. s
New crop prices have also reached attractive levels that warrant sales.
More Ethanol Than Ever By Troy weig, Petroleum Manager
We will soon have two ethanol blender pumps in our system. They are being installed at Warner and Leola. The pumps will have these choices available: • Unleaded • 10% ethanol • Two more blends like E-30 or E-50 • E-85 Additionally, our fuel services are expanding to Aberdeen. An NCFE cardtrol system will be located at 811 3rd Avenue SE, right near the Avera complex. This unmanned facility will have these fuels available: unleaded, 10% ethanol, highway fuel, and dyed diesel fuel. A great benefit to this station will be that you can use your NCFE fuel card or, of course, your credit card. So enjoy the convenience of our new pumps and use ethanol: it’s our own renewable homegrown fuel that creates U.S. jobs, reduces carbon emissions, and helps strengthen national security. s
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Shop News
By Steve Benning, Shop Manager It’s not always all work here at the shop. Sometimes we get to spread around a little fun for others. That was the case earlier this summer. With the support of NCFE, I gave pontoon rides around Mina Lake to campers that attended Camp Dream-Makers. This picture was taken as we were getting everybody outfitted with lifejackets. I’m not sure who enjoyed the ride more: me or the campers. It’s always gratifying getting to do something like this. It’s also great to be part of a work culture that places high value on community involvement. In other shop news, we have geared up for harvest. If you need any work done on your trucks and machinery during this
busy time, our shop has a talented team of mechanics. Don’t forget we also run tire trucks out of Ipswich and Warner. s
Fermentation Is Key By Scott Kilber, Feed Specialist
What does it take to make good silage? It starts with quality forage, harvested at the proper time. Other crucial steps include being packed well, quick fermentation, and covering the pile. NCFE can help by providing a high-quality silage inoculant like BioMax 5 and heavy-duty silage tarps for covering your pile. The key step is fermentation. Everything we do with putting up silage revolves around improving fermentation. Fermentation burns off the oxygen that is left in the pile, which is why it’s so important to achieve a good hard pack for removing as much air as possible. As a pile ferments, it generates heat, which is burning up nutrients and dry matter. That dry matter and nutrient loss is money lost and can also cost you down the road with reduced cattle performance. By speeding up the fermentation process with inoculants like BioMax 5, we can reduce the amount of heat produced and reduce nutrient and dry matter loss. Research shows an average dry matter loss reduction of about 5%. At a value of $30/ton, that’s a $1.50/ton savings. After you have built your silage pile and it has fermented properly, protect it from the elements by covering it with a heavy-duty silage tarp. We have a variety of lengths and widths to fit your pile. Contact your local NCFE location for BioMax 5 and silage tarps. s
Everything we do with putting up silage revolves around improving fermentation.
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Reduced Grain Handle Expected By MIKE NICKOLAS, Grain Manager
Earlier this season when it became apparent that incessant spring rains were disrupting normal planting operations, we began surveying board members, managers, and customers across our trade territory. We needed to come up with an estimate of how this was affecting planting acres, especially across our eastern trade territory. The result of our survey was an estimated decrease of up to 15 million bushels of grain for this coming year. The majority of the shortfall will be corn, where we could expect to see a 10 million bushel decrease in corn handle. We are also expecting about 3.5 million less bushels of soybeans, or a 20% reduction. Finally, depending on yields, wheat volumes could be down about 2 million bushels. Most of this reduction comes from the eastern side of our trade territory, where planting was most affected. We had already been expecting reduced wheat volumes just from initial planting intentions that showed more acres going to corn and soybeans this year. Certainly this is going to create some challenges for your cooperative and you, too, as we all cope with the effects from such a difficult planting season. Marketing-wise, we will be holding onto as much corn as possible to meet local ethanol demand, so we will not be exporting nearly as much corn out of our trade territory this year.
We will still continue with upcoming capital expenditure projects that include enhancements and upgrades to various grain handling facilities. While there may be less grain in the country this year, we’re confident that the acres lost to weather this year will once again be put in production for coming years. We greatly appreciate your business and look forward to getting you the most value possible for your grain. s
Delayed Price Program Spring and winter wheat: 5¢/bu./mo. DP space may be more limited this year because of old crop corn deliveries. DP charges will be calculated the same as in past years: 15 days free from average unload date of each assembly sheet. If not priced within 15 days, DP charges will be calculated from average unload date. Note: The title of grain passes to the elevator when grain is delivered on DP. Pricing of grain off of DP will be based on the current day’s market. DP cannot be applied to contracts for future delivery periods.
Watching for Vomitoxin The prolonged wet periods earlier in this season favored spotty development of fungal diseases in wheat. Wheat scab has been found in a few locations across the NCFE trade territory. Because of this, we will be testing for vomitoxin in wheat deliveries. Harvest discounts for affected wheat will be applied.
Planning Ahead
By Matt Christopherson, Agronomy Marketing Manager, and Lane Mielke, Sales Manager
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Planning ahead can help to increase the profitability of your operation. If you are making 2011 crop sales, make sure to take a look at fertilizer contracting options to go along with those sales and lock in a profit margin. Our Horsch Anderson units are ready to be booked for fall acres. We’ve got multiple units available to meet
demand. Their one-pass application can save time and money in the spring. Other items to stay in touch about include: • Management of prevented plant acres. • Fall phosphorus and potassium applications (perfect time of year to do this). • Burndown products and application work. • Soil sampling for 2011. Finally, here’s another good reason to call your local agronomist or location manager: we’ve got test plots located across the NCFE countryside. They can provide you with information and directions to the nearest plot. s
Monitoring Grain Bin Air
By Andy Clemen, Safety Coordinator
We’ve just purchased an additional two new gas monitors for testing the air inside confined space entries like grain bins. The monitors are necessary, because the most basic element of safety is to never trust your own senses for determining if the air in a confined space is safe for human occupancy. Never. If a grain bin needs to be entered for repair or cleaning, a reading must be taken. The monitors immediately identify oxygen-deficient spaces of less than 19.5% available oxygen. They also monitor CO2 and H2S levels. The monitors
are located at West Warner, Craven, West Bowdle, Lebanon, Pollock, and at the Prescription Ag facility. We also keep one here at the Ipswich office for training purposes. Confined spaces are, tragically, a factor in occupational deaths every year. We continually train our employees to ensure proper safety procedures are followed every time an entry must be made. Whether it’s here at the co-op or home on the farm, you may have entered a confined space a hundred times before without incident. But never let your safety guard down for an instant, or that last entry could be your final one. We’ve also purchased another Liberty Rescue Tube. This one is for our western territory. It is currently located out of the NCFE office in Java. Fire department volunteers from Java and Selby recently went through grain entrapment training rescue, with Leola and Bowdle members to be trained in late August. Please don’t hesitate to call if you have any questions about safety on your own operation. Just a reminder with harvest underway: we have harnesses/lifelines available for short-term loan out to any customer. s
Earning Your Business By Colby Tolk, Miller Agronomy Manager/Agronomist
At NCFE we take pride in going the extra mile to earn your trust and business. Here are a few items that could make an important difference in crop performance this year and next. With wheat harvest underway, it’s important to already be planning next year’s crop rotations. Consider soil sampling now to determine the best avenue for profitability on the acre. We can serve your needs for soil probing with geo-reference, with a timely turn-around of results for fall applications. Our broad spectrum of sampling techniques include standard overviews of fields all the way to site-specific VRT zones. Our soil sampling services are complemented with fall application. By having a plan in place early, adjustments can be made more easily, and you won’t feel rushed into making last-minute deadline decisions. Additionally, it’s important to keep wheat stubble and PP acres free of this year’s strong weed pressures. We have many glyphosate products and the special additives that go with them to get good, lasting kills. It’s also time to start thinking about winter wheat seed.
For your maturing crops, there are still some opportunities for improving yields or at least holding on to what is out there. It all begins with the plant itself. Because of so much early moisture, it’s vital we are watching for disease. The simple use of fungicide can be an advantage to your yield. Plant tissue samples can also be taken to see what micro or macro nutrients may be lacking. The excess moisture we received dramatically increases the risk of disease. We need to keep the plant as healthy as possible to fight off pathogens. Using micronutrients and foliar feedings can positively impact your bottom line. Most can be tankmixed with any glyphosate product. We strongly encourage the use of tissue sampling for added results in your profit center. Our agronomists can help with any of these services. They all would be glad to meet you at your local NCFE branch location, stop out at your farm, or are readily available by cell phone. As always, we thank you for your patronage and look forward to serving you in the future. s
Please Welcome... NCFE has another new agronomist. Sam Cramer joined the NCFE agronomy team earlier this summer. He will cover a customer base that extends from Northville to Redfield. Sam is an SDSU agronomy graduate. He grew up in Colman and now calls Redfield home. Call Sam at 380-0273 for crop scouting or to visit about any agronomyrelated service. He is looking forward to bringing NCFE agronomy services to this area.
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D IRECTORY 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 Bowdle . . . . . . . . . . . . . . . 605-285-6533 Toll-Free . . . . . . . . . . . . . . 800-584-9286 Petroleum . . . . . . . . . . . . 605-285-6570 Craven . . . . . . . . . . . . . . . . 605-426-6591 Fertilizer . . . . . . . . . . . . . . 605-426-6535 Hague, ND . . . . . . . . . . . . . 701-336-4673 Herreid . . . . . . . . . . . . . . . 605-437-2744 Toll-Free . . . . . . . . . . . . . . 888-437-2744 Petroleum . . . . . . . . . . . . 605-437-2415 Highmore . . . . . . . . . . . . . 605-852-2558 Java . . . . . . . . . . . . . . . . . . 605-649-6291 Petroleum . . . . . . . . . . . . 605-649-6241 Lebanon . . . . . . . . . . . . . . . 605-768-9465 Leola . . . . . . . . . . . . . . . . . 605-439-3137 Petroleum . . . . . . . . . . . . 605-439-3147 Miller . . . . . . . . . . . . . . . . . 605-853-2351 Miller Oilseed Processing . 605-853-0260 Sun Terminal . . . . . . . . . . . 605-426-6843 Northville . . . . . . . . . . . . . 605-887-3441 Onaka . . . . . . . . . . . . . . . . 605-447-5803 Pollock . . . . . . . . . . . . . . . . 605-889-2321 Warner Elevator . . . . . . . . 605-225-8247 Petroleum . . . . . . . . . . . . 605-225-9608 Wecota . . . . . . . . . . . . . . . 605-324-3200
BOARD of DIRECTORS Richard Osterday – Java, President Larry Vetch – Onaka, Vice-President Quentin Larson – Pollock, Secretary 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
Just in Time for Harvest By Mike Geditz, NCFE Farm Store
We’ve got a large supply of augers available at the Farm Store. Just give us a call and we’ll put your name on one. The pink Traeger® grill is still available, along with their more conventional grills. We stock a great supply of wood pellets for the best grilling experience ever. Also, with so much new fence being built because of all the water, we have a very good supply of wood posts on hand. As always, stop by the Farm Store when you’re going through Ipswich. It’s always great to meet customers. s
