The Co-op Advantage
Your Co-op Advantage Your partner in agriculture in southeastern Minnesota, northeastern Iowa and southwestern Wisconsin
April—June 2017 AGRONOMY NEWS Aric Gordon - Interim Manager Spring is upon us, and as many of you may have heard there have been some changes in the Agronomy Division at Farmers Co-op Elevator. Roy Zellmer, our Agronomy Division Manager, has left the company to return to his home area in Baraboo, WI. He will be farming with his family and working as a district sales manager for NACHURS. We at Farmers Co-op Elevator would like to wish Roy the best in his new ventures as he will be missed here. This being said, there is no need for concern, we are ready to meet your spring agronomy needs. In Roy’s absence, Mike Patterson will be taking the helm in the Spring Grove area, Nate Honsey in the Houston area, and Dan Miller and Scott Boldt in the Rushford area. We also have Rich Botcher in Houston and Erik Dahl in Spring Grove ready to assist you with your input and seed planning needs. Please do not hesitate to call for an ‘on farm visit’, or stop in any of our offices for a one-on-one consultation. Our main focus this spring is customer service. We will be monitoring orders at all locations and shifting assets to best meet your needs in the most timely and efficient fashion possible. We plan to mobilize equipment according to demand within our territory to keep you, the farmer, in the field. Efficiency is paramount in providing superior customer service, so we will be tracking our floaters, sprayers and tendering equipment to make sure that we are covering the maximum number of acres each day. Each season presents its own set of challenges. This season, we may run into problems with the delivery of NH3 due to newly enforced DOT regulations. We are no longer able to use a driver with a temporary CDL to deliver tanks to the customer. Your help in picking up tanks, and scheduling deliveries in advance, will help us get past this hurdle. Delivery of other products this spring will be scheduled in with our custom application tending to the best of our ability. Please allow as much lead time as possible so that we may best meet your needs. WWW.fce.coop
April/May/June 2017
1
GENERAL MANAGER NEWS Wayne Gordon, Interim General Manager
RUSHFORD 308 S. Elm St. P.O. Box 604 800-450-7733 | 507-864-7733 Monday-Friday: 8:00 a.m.-5:00 p.m. Town & Country Store 800-450-7733 | 507-864-7733 Monday-Friday: 8:00 a.m.-5:00 p.m. Saturday: 8:00 a.m.-12:00 p.m. HOUSTON 300 North Grant St. 800-450-3147 | 507-896-3147 Monday-Friday: 7:00 a.m.-5:00 p.m. Saturday: 8:00 a.m.-12:00 p.m. CALEDONIA 15609 State 76 800-427-2520 | 507-725-3306 Monday-Friday: 8:00 a.m.-5:00 p.m. Saturday: 8:00 a.m.-12:00 p.m. SPRING GROVE 306 2nd Avenue NW 877-362-8898 | 507-498-5321 Monday-Friday: 8:00 a.m.-5:00 p.m. Saturday: 8:00 a.m.-12:00 p.m. WEBSITE: www.fce.coop EMAIL: [email protected] BOARD OF DIRECTORS Steve Oian Jr., President Dan Kunst, Vice President Paul Olson, Secretary/Treasurer Scott Bulman, Director Doug Heintz, Director Eric Nelson, Director Rick Ruberg, Director
WWW.fce.coop
WHO IS THAT OLD GUY IN THE RUSHFORD OFFICE? Well that old guy is Wayne Gordon who has been in the co-op managing business for 45 years. 26 of those years I have been a General Manager, and the last 19 years an Interim Manager. FCE is my 23rd interim managing job. In my spare time, I farm with my family in the SW part of Minnesota (Jackson Co. and Nobles Co.). The FCE Board of Directors hired me to start the Interim Manager position effective February 13, 2017. The managing service business I have also includes my son (Aric) and daughter (Steph), who team up on interim managing jobs. Aric Gordon is currently working with the Agronomy and Grain Divisions. Steph Gordon will be helping in the Feed Division. My purpose here at FCE is to manage the day to day operations and facilitate the Board of Directors in selecting the co-op’s direction and selection process. I am pleased with the operations in general. The employees and board are great to work with. I’m impressed with the producers and the trade area that FCE services. Our goal is to work as a team to improve operations and efficiencies to better serve our members. We are experiencing difficulties in finding qualified seasonal help who have a CDL Class A license. Therefore, deliveries of some items, such as anhydrous ammonia, bulk and liquid fertilizers, and seed may see delays in delivery time. The customers can be a great help by taking the products early before the spring rush. Call us today. Your FCE Board is focused on directing your co-op in the right direction. They are committed to putting extra time and effort into this process to make sure the members of FCE are provided with quality products and services. I am based out of the Rushford office, and would encourage you to stop in and visit about the future of your co-op. My cell phone number is (507) 840-1512. Thanks for your patronage and have a safe and productive spring. April/May/June 2017
2
GRAIN NEWS Greg Boldt, Grain Division Manager It’s that time of year again when we like to remind producers of the advantages of marketing your grain early. Here at Farmer’s Co-op Elevator we offer all of your traditional contracts; fixed price, basis pricing, hedge-toarrives, and some new-to-the-market contracts, along with options, calls and puts. Many of us are holding out for better pricing on the board, but by locking in now you are protected against any further drop in the market and can create a decent average if you hit some of the highs along the way. By submitting firm bid offers, you tell us what you want to contract and what price you want. We guarantee to honor your offer, if the market hits your stated price, at any time of the day, for the next 30 days. You are also committed to deliver on said bushels if the offer hits. A NEW contract we are offering is marketed through Intl FCStone, LLC. It is the Producer Accumulator. The Producer Accumulator is a corn only, 5,000-bushel minimum, Oct/Nov 17 delivery specialized contract. This contract has the potential of offering excellent returns. However, as with everything else in life, there is some risk involved. Your 5,000-bushel commitment is broken down into weekly increments. Each increment is priced at the end of the week. You are guaranteed the Accumulation Level price every week the CBOT futures price trades above the Knock Out/Barrier Level. If the futures price trades or settles AT or BELOW the Knock Out/Barrier Level – your contract seizes to exist. At this point, you are only obligated to deliver the number of bushels priced up until this point. If the futures price trades or settles AT OR BELOW the Accumulation Level (but above the barrier level) 100% of your weekly bushels are priced. If the futures price trades or settles ABOVE the Accumulation Level, 200% of your weekly bushels are priced. (This could result in doubling your bushel commitment)
This information is posted on our web site also. 6.049 Million more acers of soybeans 4.008 Million less acers corn WWW.fce.coop
April/May/June 2017
3
FEED NEWS Rod Torgerson, Feed Division Manager FCE ‘Feed Mill Remodeling Project’ has been a long process taking close to two years to complete. We are finally getting near the end. In particular, the last two months have been a challenge to manufacture feed, complete the installation of equipment and installation of the automation features. We had millwright workers, electricians and our own mill production employees competing for space to get their jobs done. When all is said and done, we should be able to increase the speed of manufacturing and delivery of our customers feed in a timely manner. Another very important ingredient to achieve the efficient manufacturing and delivery of feed is that our customers give two-day notice for feed delivery. This gives the co-op time to batch and dispatch our feed loads in the most efficient manner. Good for the customer and good for the co-op. The ‘Feed Remodel Project’ will also allow us to become more basic in manufacturing and packaging. This will save the customers money on products currently ordered and delivered from another manufacturer, which now we can manufacture.
WWW.fce.coop
HOUSTON NEWS Nate Honsey, Houston Location Manager The Houston agronomy plant will be staffed throughout the spring season and will be servicing local starter deliveries and drive-in customers. The spring custom application equipment will be dispatched and serviced out of our Rushford location. Throughout this spring, we will assist with blending for our custom application equipment whenever needed. We still have a full supply of all your spring dry and liquid fertilizer needs. We currently carry 7-23 -5 liquid starter, 9-18-9-1 liquid starter, and 28-0-0 liquid nitrogen, along with a complete supply of dry fertilizers. We are tight on CDL licensed drivers this spring so we ask that you give us as much notice as possible for liquid and dry deliveries. Our seed shed will be stocked with all your in-season needs for seed corn, soybeans, oats, alfalfa, and all your small seed needs. We will begin phasing out parts of the agronomy operations in Houston after this spring, as we believe that we can provide a service level that is equal to or greater than currently exists by focusing our staff on service and eliminating some of our less efficient plants. Farmers Co-op Elevator is dedicated to serving our patrons and strives to provide a quality service at reasonable rates. To do this, we must evaluate our aging facilities and focus on improvements that both increase our level of service and create cost savings through efficiencies in operations.
April/May/June 2017
4
FCE Credit Policy states that statements will be sent to all customers who have an unpaid balance at the end of the each month.
SPRING GROVE NEWS
Mike Patterson, Spring Grove Location Manager Dear Valued Customers, Spring is right around the corner as you well know. We are trying to plan ahead to make things easier for both you and the co-op. The co-op is looking for seasonal/temporary help with a class A license, preferably with a hazardous endorsement. If you or anyone you know are willing to help, please contact our Human Resource Manager, Deann Vix, or go to www.fce.coop to complete an application.
Crop planning is very important, whether it’s dealing with mapping of fields, soil sampling, spraying or grid sampling. Stop in to see Erik Dahl or Mike Patterson at the Spring Grove location to help speed things along. There are financing options available through the co -op. Please stop in, call or email us and we would be happy to help. For faster and better service, please plan ahead to alleviate any issues that may arise. Agronomy Team at Spring Grove
ACCOUNTS RECEIVABLE NEWS Lexie Boehmke, Accounts Receivable Manager Hello everyone and HAPPY SPRING. Spring is right around the corner and soon everyone will be busy trying to get all their field work done. I would like to remind all of you of a few things in regards to our accounts receivable policy, and encourage everyone to get their financing plans made now.
WWW.fce.coop
The balance shown is due and payable before or on the last day of the month. If the balance is not paid by the last day of the month, it is considered past due. If the balance remains unpaid after 60 days, all future purchases will be placed on COD. COD balances will be payable at the time of purchase or delivery until the account is paid current, or arrangements have been made with the Accounts Receivable Department in Rushford. If you make a purchase and do not receive your statement at the beginning of the following month, or you feel your statement is incorrect please call me so we can address the problem. To see the complete FCE Credit Policy please log onto the Farmers Co-op Elevator web page; www.fce.coop. FCE has partnered with John Deere Financing again this year. If you have invoices, statements or prepay that you want to be ran to John Deere or if you have questions, please call me directly at 507-864-7733 Ext: 2101 or 800-450-7733. This helps to eliminate it being forgotten, misunderstood, or misplaced. We are in the process of partnering with a new company called CFA (The Cooperative Finance Association, Inc.). This program is for agronomy purchases from Farmers Co-op, crop insurance, fuel for the farm and land rent. If this sounds like something you would be interested in, please let me know and we will get you an application to complete. The nice thing about this financing is if your account is current, then your agronomy account gets paid each month. Then you will get your 2% discount and not have finance charges. You will save money both ways. If you have any questions in regards to these two programs, or on your account, please do not hesitate to give me a call. I am here to help you in any way that I can. Have a wonderful and safe planting season!
April/May/June 2017
5
Your Partner in Agriculture
308 Elm Street, P.O. Box 604 Rushford, MN 55971 800-450-7733 www.fce.coop
Our Mission is to service and enhance the profitability of our producers
Please contact our Agronomy Division for all your seed, custom application and fertilizer needs.
Purina Mills Exclusive pet food - Buy 8, Get 1 Free
Rushford: 507-864-2161 Houston: 507-896-3147 Spring Grove: 507-498-5321 To serve you better, a two day notice is greatly appreciated. WWW.fce.coop
April/May/June 2017
6
April—June 2017 AGRONOMY NEWS Aric Gordon - Interim Manager Spring is upon us, and as many of you may have heard there have been some changes in the Agronomy Division at Farmers Co-op Elevator. Roy Zellmer, our Agronomy Division Manager, has left the company to return to his home area in Baraboo, WI. He will be farming with his family and working as a district sales manager for NACHURS. We at Farmers Co-op Elevator would like to wish Roy the best in his new ventures as he will be missed here. This being said, there is no need for concern, we are ready to meet your spring agronomy needs. In Roy’s absence, Mike Patterson will be taking the helm in the Spring Grove area, Nate Honsey in the Houston area, and Dan Miller and Scott Boldt in the Rushford area. We also have Rich Botcher in Houston and Erik Dahl in Spring Grove ready to assist you with your input and seed planning needs. Please do not hesitate to call for an ‘on farm visit’, or stop in any of our offices for a one-on-one consultation. Our main focus this spring is customer service. We will be monitoring orders at all locations and shifting assets to best meet your needs in the most timely and efficient fashion possible. We plan to mobilize equipment according to demand within our territory to keep you, the farmer, in the field. Efficiency is paramount in providing superior customer service, so we will be tracking our floaters, sprayers and tendering equipment to make sure that we are covering the maximum number of acres each day. Each season presents its own set of challenges. This season, we may run into problems with the delivery of NH3 due to newly enforced DOT regulations. We are no longer able to use a driver with a temporary CDL to deliver tanks to the customer. Your help in picking up tanks, and scheduling deliveries in advance, will help us get past this hurdle. Delivery of other products this spring will be scheduled in with our custom application tending to the best of our ability. Please allow as much lead time as possible so that we may best meet your needs. WWW.fce.coop
April/May/June 2017
1
GENERAL MANAGER NEWS Wayne Gordon, Interim General Manager
RUSHFORD 308 S. Elm St. P.O. Box 604 800-450-7733 | 507-864-7733 Monday-Friday: 8:00 a.m.-5:00 p.m. Town & Country Store 800-450-7733 | 507-864-7733 Monday-Friday: 8:00 a.m.-5:00 p.m. Saturday: 8:00 a.m.-12:00 p.m. HOUSTON 300 North Grant St. 800-450-3147 | 507-896-3147 Monday-Friday: 7:00 a.m.-5:00 p.m. Saturday: 8:00 a.m.-12:00 p.m. CALEDONIA 15609 State 76 800-427-2520 | 507-725-3306 Monday-Friday: 8:00 a.m.-5:00 p.m. Saturday: 8:00 a.m.-12:00 p.m. SPRING GROVE 306 2nd Avenue NW 877-362-8898 | 507-498-5321 Monday-Friday: 8:00 a.m.-5:00 p.m. Saturday: 8:00 a.m.-12:00 p.m. WEBSITE: www.fce.coop EMAIL: [email protected] BOARD OF DIRECTORS Steve Oian Jr., President Dan Kunst, Vice President Paul Olson, Secretary/Treasurer Scott Bulman, Director Doug Heintz, Director Eric Nelson, Director Rick Ruberg, Director
WWW.fce.coop
WHO IS THAT OLD GUY IN THE RUSHFORD OFFICE? Well that old guy is Wayne Gordon who has been in the co-op managing business for 45 years. 26 of those years I have been a General Manager, and the last 19 years an Interim Manager. FCE is my 23rd interim managing job. In my spare time, I farm with my family in the SW part of Minnesota (Jackson Co. and Nobles Co.). The FCE Board of Directors hired me to start the Interim Manager position effective February 13, 2017. The managing service business I have also includes my son (Aric) and daughter (Steph), who team up on interim managing jobs. Aric Gordon is currently working with the Agronomy and Grain Divisions. Steph Gordon will be helping in the Feed Division. My purpose here at FCE is to manage the day to day operations and facilitate the Board of Directors in selecting the co-op’s direction and selection process. I am pleased with the operations in general. The employees and board are great to work with. I’m impressed with the producers and the trade area that FCE services. Our goal is to work as a team to improve operations and efficiencies to better serve our members. We are experiencing difficulties in finding qualified seasonal help who have a CDL Class A license. Therefore, deliveries of some items, such as anhydrous ammonia, bulk and liquid fertilizers, and seed may see delays in delivery time. The customers can be a great help by taking the products early before the spring rush. Call us today. Your FCE Board is focused on directing your co-op in the right direction. They are committed to putting extra time and effort into this process to make sure the members of FCE are provided with quality products and services. I am based out of the Rushford office, and would encourage you to stop in and visit about the future of your co-op. My cell phone number is (507) 840-1512. Thanks for your patronage and have a safe and productive spring. April/May/June 2017
2
GRAIN NEWS Greg Boldt, Grain Division Manager It’s that time of year again when we like to remind producers of the advantages of marketing your grain early. Here at Farmer’s Co-op Elevator we offer all of your traditional contracts; fixed price, basis pricing, hedge-toarrives, and some new-to-the-market contracts, along with options, calls and puts. Many of us are holding out for better pricing on the board, but by locking in now you are protected against any further drop in the market and can create a decent average if you hit some of the highs along the way. By submitting firm bid offers, you tell us what you want to contract and what price you want. We guarantee to honor your offer, if the market hits your stated price, at any time of the day, for the next 30 days. You are also committed to deliver on said bushels if the offer hits. A NEW contract we are offering is marketed through Intl FCStone, LLC. It is the Producer Accumulator. The Producer Accumulator is a corn only, 5,000-bushel minimum, Oct/Nov 17 delivery specialized contract. This contract has the potential of offering excellent returns. However, as with everything else in life, there is some risk involved. Your 5,000-bushel commitment is broken down into weekly increments. Each increment is priced at the end of the week. You are guaranteed the Accumulation Level price every week the CBOT futures price trades above the Knock Out/Barrier Level. If the futures price trades or settles AT or BELOW the Knock Out/Barrier Level – your contract seizes to exist. At this point, you are only obligated to deliver the number of bushels priced up until this point. If the futures price trades or settles AT OR BELOW the Accumulation Level (but above the barrier level) 100% of your weekly bushels are priced. If the futures price trades or settles ABOVE the Accumulation Level, 200% of your weekly bushels are priced. (This could result in doubling your bushel commitment)
This information is posted on our web site also. 6.049 Million more acers of soybeans 4.008 Million less acers corn WWW.fce.coop
April/May/June 2017
3
FEED NEWS Rod Torgerson, Feed Division Manager FCE ‘Feed Mill Remodeling Project’ has been a long process taking close to two years to complete. We are finally getting near the end. In particular, the last two months have been a challenge to manufacture feed, complete the installation of equipment and installation of the automation features. We had millwright workers, electricians and our own mill production employees competing for space to get their jobs done. When all is said and done, we should be able to increase the speed of manufacturing and delivery of our customers feed in a timely manner. Another very important ingredient to achieve the efficient manufacturing and delivery of feed is that our customers give two-day notice for feed delivery. This gives the co-op time to batch and dispatch our feed loads in the most efficient manner. Good for the customer and good for the co-op. The ‘Feed Remodel Project’ will also allow us to become more basic in manufacturing and packaging. This will save the customers money on products currently ordered and delivered from another manufacturer, which now we can manufacture.
WWW.fce.coop
HOUSTON NEWS Nate Honsey, Houston Location Manager The Houston agronomy plant will be staffed throughout the spring season and will be servicing local starter deliveries and drive-in customers. The spring custom application equipment will be dispatched and serviced out of our Rushford location. Throughout this spring, we will assist with blending for our custom application equipment whenever needed. We still have a full supply of all your spring dry and liquid fertilizer needs. We currently carry 7-23 -5 liquid starter, 9-18-9-1 liquid starter, and 28-0-0 liquid nitrogen, along with a complete supply of dry fertilizers. We are tight on CDL licensed drivers this spring so we ask that you give us as much notice as possible for liquid and dry deliveries. Our seed shed will be stocked with all your in-season needs for seed corn, soybeans, oats, alfalfa, and all your small seed needs. We will begin phasing out parts of the agronomy operations in Houston after this spring, as we believe that we can provide a service level that is equal to or greater than currently exists by focusing our staff on service and eliminating some of our less efficient plants. Farmers Co-op Elevator is dedicated to serving our patrons and strives to provide a quality service at reasonable rates. To do this, we must evaluate our aging facilities and focus on improvements that both increase our level of service and create cost savings through efficiencies in operations.
April/May/June 2017
4
FCE Credit Policy states that statements will be sent to all customers who have an unpaid balance at the end of the each month.
SPRING GROVE NEWS
Mike Patterson, Spring Grove Location Manager Dear Valued Customers, Spring is right around the corner as you well know. We are trying to plan ahead to make things easier for both you and the co-op. The co-op is looking for seasonal/temporary help with a class A license, preferably with a hazardous endorsement. If you or anyone you know are willing to help, please contact our Human Resource Manager, Deann Vix, or go to www.fce.coop to complete an application.
Crop planning is very important, whether it’s dealing with mapping of fields, soil sampling, spraying or grid sampling. Stop in to see Erik Dahl or Mike Patterson at the Spring Grove location to help speed things along. There are financing options available through the co -op. Please stop in, call or email us and we would be happy to help. For faster and better service, please plan ahead to alleviate any issues that may arise. Agronomy Team at Spring Grove
ACCOUNTS RECEIVABLE NEWS Lexie Boehmke, Accounts Receivable Manager Hello everyone and HAPPY SPRING. Spring is right around the corner and soon everyone will be busy trying to get all their field work done. I would like to remind all of you of a few things in regards to our accounts receivable policy, and encourage everyone to get their financing plans made now.
WWW.fce.coop
The balance shown is due and payable before or on the last day of the month. If the balance is not paid by the last day of the month, it is considered past due. If the balance remains unpaid after 60 days, all future purchases will be placed on COD. COD balances will be payable at the time of purchase or delivery until the account is paid current, or arrangements have been made with the Accounts Receivable Department in Rushford. If you make a purchase and do not receive your statement at the beginning of the following month, or you feel your statement is incorrect please call me so we can address the problem. To see the complete FCE Credit Policy please log onto the Farmers Co-op Elevator web page; www.fce.coop. FCE has partnered with John Deere Financing again this year. If you have invoices, statements or prepay that you want to be ran to John Deere or if you have questions, please call me directly at 507-864-7733 Ext: 2101 or 800-450-7733. This helps to eliminate it being forgotten, misunderstood, or misplaced. We are in the process of partnering with a new company called CFA (The Cooperative Finance Association, Inc.). This program is for agronomy purchases from Farmers Co-op, crop insurance, fuel for the farm and land rent. If this sounds like something you would be interested in, please let me know and we will get you an application to complete. The nice thing about this financing is if your account is current, then your agronomy account gets paid each month. Then you will get your 2% discount and not have finance charges. You will save money both ways. If you have any questions in regards to these two programs, or on your account, please do not hesitate to give me a call. I am here to help you in any way that I can. Have a wonderful and safe planting season!
April/May/June 2017
5
Your Partner in Agriculture
308 Elm Street, P.O. Box 604 Rushford, MN 55971 800-450-7733 www.fce.coop
Our Mission is to service and enhance the profitability of our producers
Please contact our Agronomy Division for all your seed, custom application and fertilizer needs.
Purina Mills Exclusive pet food - Buy 8, Get 1 Free
Rushford: 507-864-2161 Houston: 507-896-3147 Spring Grove: 507-498-5321 To serve you better, a two day notice is greatly appreciated. WWW.fce.coop
April/May/June 2017
6
