Why More Is Never Enough
(806) 948-4121 • www.agproducerscoop.com
JAN 2016
Why More Is Never Enough BY DAVE REINDERS, GENERAL MANAGER
Fall harvest is finally coming to a close. Ag Producers Co-op handled a record 44,500,000 bushels, with several days of receipts in excess of 1,500,000 bushels. Our employees tried their best to take care of you and your harvest in a quick, efficient, and friendly manner. I hope you experienced just this level of service. Since the time I came to your cooperative as the general manager, we have added more than 10 million bushels of storage capacity among Sunray, Coldwater, Gruver, and Conlen. Each time we build an addition, we feel it will likely be the last we need to make. However, we are already in the analysis phase of determining where and how much more storage is needed. We are now facing storage shortages in Spearman, Olton, and Edmonson. I am sure our patrons realize we can’t make all the additions at once. We will determine the locations that make the most geographic and financial sense to expand, and then make every effort to have those additions completed by next harvest. Hopefully you had a chance to attend one of this year’s December annual meetings in Sunray or Plainview. Several years ago, we changed our format from a gala event to a business meeting. From what we have been told, the change has been well-received by our patrons. For those who couldn’t attend, the highlights were: • $5,084,340 of net savings • $2,450,000 returned in cash from our Market Plus Program • 5% of patrons’ book credits revolved in the cash amount of $1,650,000 • $2,037,176 paid out in cash from this year’s dividends All told, more than $6,137,176 was passed out in cash at our annual meetings. I certainly hope you are as proud of Ag Producers Co-op as I am. None of this would
have been possible without the support and business of each and every one of our patrons. Thank you for that. I also want to say a big thank you to our employees for their ongoing dedication and their hard work. They truly are a group second to none. Another big thank you goes to your directors for their dedication to attend all of our meetings. Their farming and ranching wisdom is valuable to me and the management team. We know board service takes a lot of time away from the directors’ own operations, so their commitment is greatly appreciated by everyone involved with Ag Producers Co-op. Altogether, this has been a very eventful 2015. We saw more moisture in 12 months than we did in the previous thirty-six. We had one merger and the acquisition of AGCO of Spearman this past year. Then we were blessed with the largest harvest ever. We still have some grain on the ground, but each location has a plan to get it picked up as soon as storage space becomes available. I hope that you and your family had a great Thanksgiving and a Merry Christmas. All of us at Ag Producers Co-op wish you a healthy, safe, and even more prosperous 2016. ♦
A full bunker in Sunray is evidence of our great harvest.
LOCATIONS Sunray
Gruver Capps Switch Conlen
Etter
Bushland Coldwater
Olton
Plainview Edmonson
Hart
Spearman
806-948-4121 • 806-733-2481 • 806-948-4151 • 806-384-2164 • 806-966-5424 • 806-358-2411 • 806-384-2085 • 806-285-2638 • 806-293-5103 • 806-864-3358 • 806-938-2189 • 806-659-3751
Sunray Tire Center – Not Just for Farmers BY TIM DAFFERN, SUNRAY TIRE SERVICE CENTER MANAGER
Our tire service center may be one of the best-kept secrets in town, but we’re working hard to change that. While area farmers know us well, many other folks I talk to have the idea that because we’re part of the co-op, we only handle tires for the farm. The fact is, we have a great selection of tires for cars and light trucks in addition to our full lineup of ag tires. To better meet the broader needs of Sunray and other area communities, we’re expanding our tire lines and adding the parts and accessories needed to serve anyone who walks into our store. We now carry the Hercules line of car and light truck tires. Hercules is an established brand that comes with a built-in road hazard warranty. We also have the Atturo line—a sharp, affordable lineup of light truck tires particularly well suited for highway, all-terrain, and mud-terrain use. You need to come in and take a look at these.
We have a couple of service specials in place and are working to offer monthly deals. For example, when you get an oil change, you’ll get $15 off any car wash—even our full detail wash. Watch for information on our big tire sale coming up in the February/March timeframe. Just about every tire we have in stock will be on sale. The four of us—Eddie, Travis, Daniel, and I—are committed to doing whatever it takes to serve our customers. Our goal is to build a reputation for service, fair treatment, and quality. The bottom line—we want everyone who comes into our shop to leave feeling like they have been well taken care of. ♦
For our ag customers we carry Samson, BKT, Firestone®, and Michelin tires, but we can get just about anything you’re looking for. We have two service trucks, available 24 hours a day, and between the two we can handle any job from smaller vehicles to tractors and combines.
More than tires
We’re also more than a tire center. You can come to us for oil changes, brake jobs, starters, alternators, belts, batteries—even car washes. If you’re not thrilled with the wheels that came with your vehicle, we can also get custom wheels.
Building a Dream Many farm kids dream of farming when they grow up. For some, however, turning that dream into reality requires a little more determination and creativity. That’s the case for Sam and Cari Beauchamp. Both grew up on the farm—Sam on a small farm and ranch in southeast Colorado and Cari on a wheat farm near Larned, KS. “I knew I wanted to farm since I was about 8,” Sam recalls. “The challenge was to find a way to make it happen.”
With 10 years of experience and relationships under his belt and a personal operation that has grown to around 5,500 acres, Sam and his crew are able to stay reasonably close to home these days. While building the custom business, however, Sam would travel a fair distance to find work. That turned out to be a very good thing, as Sam met Cari on one of those custom-harvesting trips. “Cari handles 95% of the office work and keeps 16-18 guys fed during harvest,” Sam states. The Beauchamps three children—Elli, 4,
For Sam, that journey involved time at Colorado State University, where he earned double degrees in ag business and soil and crop science. Following graduation, he set his sights on the Texas panhandle, moving to the Spearman area in 2005. “I saw opportunity here for a young guy to get started, with the quality of the land and water,” Sam says. “I worked for a local producer for a year, and he was on the verge of retirement. He sold his farm ground, financed his equipment line to me, and that’s how I started doing custom work.” As time passed, the custom farming operation—planting, tillage, and harvesting—grew. At the same time, Sam was building his personal farming operation, using the same equipment on leased acres. ©2015 Ag Producers Co-op. All Rights Reserved. Published in partnership with VistaComm® (www.VistaComm.com).
Plainview Location Builds on Tradition of Service Though they’ve only been a part of Ag Producers since August, 2014, our Plainview location enjoys a long history of service to the surrounding agricultural community. “Prior to joining Ag Producers, we were part of United Farm Industries,” says Karan Estrada, assistant controller in Plainview. “UFI was formed when three coops came together in the early 1970s.” With 15 full-time employees and a full range of grain, cotton, energy, and farm supply services, Plainview is well equipped to take care of area farmers—as well as the energy needs of Plainview business owners and residents. “We have a tire shop and on-farm tire service,” says Karan, listing the services Plainview provides. “We have a farm store, which carries tools, oil, irrigation boots, and a variety of items needed by the ag community. On the energy side, we deliver fuel and propane to farms, businesses, and homes. “On the grain side, we can hold more than 3.2 million bushels of grain,” she continues. “We receive grain at our east 70 and 194 locations, and
we can store additional grain at our downtown location.” The grain storage and handling capabilities received a good workout this year, as area crops were impressive. “The crop was huge— the most grain that I can remember ever taking into this facility,” Karan states. That covers quite a few harvests, as Karan has worked at the coop for 34 years. As one who has been a firsthand witness to several decades of change, Karan has a good perspective on the transition from UFI to Ag Producers. “The change has been received very well in the community,” she notes. “Ag Producers has done a lot of work on our grain facilities, and we’ve had a lot of compliments on the improvements.” Karan notes that great service and the cooperative advantage—profits returned to the farmer/owners—have earned Plainview a loyal customer base. “We’ll continue to do everything we can to earn their business,” Karan concludes. “Our customers are the reason we’re here.” ♦
Ike, 3, and a brand new baby girl, Aspen—also help keep her busy.
Custom trend
Currently, Sam runs four combines and has six or seven full-time employees on the custom side of the business, which continues to grow. “With the cost of new equipment, it takes more acres to justify purchasing your own,” Sam explains. “As a result, the older generation prefers to hire someone with the latest equipment and technology to do the work as opposed to buying the equipment themselves.” Sam is quick to point out that he would not have been able to grow and maintain his successful farming businesses without a lot of help. “We couldn’t do this without good customers and good help,” he states. “I have really good help, and keeping good people is one of the biggest challenges in this business. The past five years, we’ve been able to farm year-round, which helps.” Good relationships with other ag businesses are also important. Sam brings virtually all of his grain to the Spearman elevator, which recently became part of Ag Producers. “We also do a lot of custom fertilizer application, so we work hand-in-hand with their agronomy department,” he adds. “The transition has been smooth and Ag Producers is good to work with. Not only do I bring my grain in there, but I also bring in a lot of grain from our custom-harvesting customers. They’ve been real accommodating
on moisture requirements and hours of operation.” As a “veteran” beginning farmer now, what advice would Sam give to younger farmers who want to get into the game? “It’s not a sprint,” he says. “It takes time, because you have to build relationships with local farmers, lenders, co-ops, and businesses. A farmer in his 60s has been doing business in the community for 40 years. They know they can trust him. A young farmer just starting out has to earn that trust.” For Sam going forward, his goals are now pretty standard. “I have the universal goal—stay farming,” Sam laughs. “We have to find ways to deal with low commodity prices and more government regulations, keep our custom-farming customers satisfied, and keep the farm generating income on the personal side. You’re not going to get rich farming, but you’re going to enjoy going to work every day.” ♦
PO Box 430 • Sunray, TX 79086
What a Harvest! BY GARY HOLCOMB, GRAIN DEPARTMENT MANAGER
It’s a record! We knew this fall’s grain harvest was going to be big, but we received even more than our projections. As expected, we had storage space issues at several locations. Our employees worked extremely hard and put in long hours since this harvest was much longer than normal. We appreciate your understanding and patience. As Dave mentions, we are looking ahead to the future and making plans to expand and speed up our facilities. Since our last newsletter, commodity prices have been mostly in a sideways pattern, with no big news to change the fundamental outlook: big crops and stagnant demand. The situation around the world is about the same. Since we always look for China to engage as a big buyer and to support commodity prices in the U.S., there has been a lot of talk about the Chinese excess supply of grain and cotton. They have been buyers, but not up to last year’s level. Let’s hope they keep buying steadily through the year. Grain prices look to continue
sideways to lower until spring, when we usually have some kind of rally. Cotton prices have actually broken above the downtrend we’ve been in since July. However, most traders don’t see significantly higher prices in the near future. So whether you have 2015 crop grain or cotton to market, use rallies to get it sold. Expect grain basis to remain weak this year, due to huge local production. Our region is in a surplus supply situation much different than our usual deficit position. For 2016 crops, expect rallies (related to rumors of acreage shifts or planting problems in the spring) to start locking in prices. The 2016 harvest is a long way off, but with projected carryover supplies, there isn’t much reason for the market to sustain higher prices. Something will have to change in the production cycle—somewhere in the world—to alter the bearish supply and demand situation we have. Watch for notices of our annual Market Outlook meetings. We will have them in late January or early February. Thank you for your business! ♦
Sharing in the Spirit of the Season Each year, the Christmas season is a time of giving at the Plainview location. “All our employees are encouraged to donate canned goods and non-perishable items for the Faith in Sharing House in Plainview,” says Karan Estrada, Plainview assistant controller. The Faith in Sharing House is a place where families and individuals in need can receive a basket of food. “We’ve contributed for several years now as a way to help our neighbors in need,” Karen adds. ♦
JAN 2016
Why More Is Never Enough BY DAVE REINDERS, GENERAL MANAGER
Fall harvest is finally coming to a close. Ag Producers Co-op handled a record 44,500,000 bushels, with several days of receipts in excess of 1,500,000 bushels. Our employees tried their best to take care of you and your harvest in a quick, efficient, and friendly manner. I hope you experienced just this level of service. Since the time I came to your cooperative as the general manager, we have added more than 10 million bushels of storage capacity among Sunray, Coldwater, Gruver, and Conlen. Each time we build an addition, we feel it will likely be the last we need to make. However, we are already in the analysis phase of determining where and how much more storage is needed. We are now facing storage shortages in Spearman, Olton, and Edmonson. I am sure our patrons realize we can’t make all the additions at once. We will determine the locations that make the most geographic and financial sense to expand, and then make every effort to have those additions completed by next harvest. Hopefully you had a chance to attend one of this year’s December annual meetings in Sunray or Plainview. Several years ago, we changed our format from a gala event to a business meeting. From what we have been told, the change has been well-received by our patrons. For those who couldn’t attend, the highlights were: • $5,084,340 of net savings • $2,450,000 returned in cash from our Market Plus Program • 5% of patrons’ book credits revolved in the cash amount of $1,650,000 • $2,037,176 paid out in cash from this year’s dividends All told, more than $6,137,176 was passed out in cash at our annual meetings. I certainly hope you are as proud of Ag Producers Co-op as I am. None of this would
have been possible without the support and business of each and every one of our patrons. Thank you for that. I also want to say a big thank you to our employees for their ongoing dedication and their hard work. They truly are a group second to none. Another big thank you goes to your directors for their dedication to attend all of our meetings. Their farming and ranching wisdom is valuable to me and the management team. We know board service takes a lot of time away from the directors’ own operations, so their commitment is greatly appreciated by everyone involved with Ag Producers Co-op. Altogether, this has been a very eventful 2015. We saw more moisture in 12 months than we did in the previous thirty-six. We had one merger and the acquisition of AGCO of Spearman this past year. Then we were blessed with the largest harvest ever. We still have some grain on the ground, but each location has a plan to get it picked up as soon as storage space becomes available. I hope that you and your family had a great Thanksgiving and a Merry Christmas. All of us at Ag Producers Co-op wish you a healthy, safe, and even more prosperous 2016. ♦
A full bunker in Sunray is evidence of our great harvest.
LOCATIONS Sunray
Gruver Capps Switch Conlen
Etter
Bushland Coldwater
Olton
Plainview Edmonson
Hart
Spearman
806-948-4121 • 806-733-2481 • 806-948-4151 • 806-384-2164 • 806-966-5424 • 806-358-2411 • 806-384-2085 • 806-285-2638 • 806-293-5103 • 806-864-3358 • 806-938-2189 • 806-659-3751
Sunray Tire Center – Not Just for Farmers BY TIM DAFFERN, SUNRAY TIRE SERVICE CENTER MANAGER
Our tire service center may be one of the best-kept secrets in town, but we’re working hard to change that. While area farmers know us well, many other folks I talk to have the idea that because we’re part of the co-op, we only handle tires for the farm. The fact is, we have a great selection of tires for cars and light trucks in addition to our full lineup of ag tires. To better meet the broader needs of Sunray and other area communities, we’re expanding our tire lines and adding the parts and accessories needed to serve anyone who walks into our store. We now carry the Hercules line of car and light truck tires. Hercules is an established brand that comes with a built-in road hazard warranty. We also have the Atturo line—a sharp, affordable lineup of light truck tires particularly well suited for highway, all-terrain, and mud-terrain use. You need to come in and take a look at these.
We have a couple of service specials in place and are working to offer monthly deals. For example, when you get an oil change, you’ll get $15 off any car wash—even our full detail wash. Watch for information on our big tire sale coming up in the February/March timeframe. Just about every tire we have in stock will be on sale. The four of us—Eddie, Travis, Daniel, and I—are committed to doing whatever it takes to serve our customers. Our goal is to build a reputation for service, fair treatment, and quality. The bottom line—we want everyone who comes into our shop to leave feeling like they have been well taken care of. ♦
For our ag customers we carry Samson, BKT, Firestone®, and Michelin tires, but we can get just about anything you’re looking for. We have two service trucks, available 24 hours a day, and between the two we can handle any job from smaller vehicles to tractors and combines.
More than tires
We’re also more than a tire center. You can come to us for oil changes, brake jobs, starters, alternators, belts, batteries—even car washes. If you’re not thrilled with the wheels that came with your vehicle, we can also get custom wheels.
Building a Dream Many farm kids dream of farming when they grow up. For some, however, turning that dream into reality requires a little more determination and creativity. That’s the case for Sam and Cari Beauchamp. Both grew up on the farm—Sam on a small farm and ranch in southeast Colorado and Cari on a wheat farm near Larned, KS. “I knew I wanted to farm since I was about 8,” Sam recalls. “The challenge was to find a way to make it happen.”
With 10 years of experience and relationships under his belt and a personal operation that has grown to around 5,500 acres, Sam and his crew are able to stay reasonably close to home these days. While building the custom business, however, Sam would travel a fair distance to find work. That turned out to be a very good thing, as Sam met Cari on one of those custom-harvesting trips. “Cari handles 95% of the office work and keeps 16-18 guys fed during harvest,” Sam states. The Beauchamps three children—Elli, 4,
For Sam, that journey involved time at Colorado State University, where he earned double degrees in ag business and soil and crop science. Following graduation, he set his sights on the Texas panhandle, moving to the Spearman area in 2005. “I saw opportunity here for a young guy to get started, with the quality of the land and water,” Sam says. “I worked for a local producer for a year, and he was on the verge of retirement. He sold his farm ground, financed his equipment line to me, and that’s how I started doing custom work.” As time passed, the custom farming operation—planting, tillage, and harvesting—grew. At the same time, Sam was building his personal farming operation, using the same equipment on leased acres. ©2015 Ag Producers Co-op. All Rights Reserved. Published in partnership with VistaComm® (www.VistaComm.com).
Plainview Location Builds on Tradition of Service Though they’ve only been a part of Ag Producers since August, 2014, our Plainview location enjoys a long history of service to the surrounding agricultural community. “Prior to joining Ag Producers, we were part of United Farm Industries,” says Karan Estrada, assistant controller in Plainview. “UFI was formed when three coops came together in the early 1970s.” With 15 full-time employees and a full range of grain, cotton, energy, and farm supply services, Plainview is well equipped to take care of area farmers—as well as the energy needs of Plainview business owners and residents. “We have a tire shop and on-farm tire service,” says Karan, listing the services Plainview provides. “We have a farm store, which carries tools, oil, irrigation boots, and a variety of items needed by the ag community. On the energy side, we deliver fuel and propane to farms, businesses, and homes. “On the grain side, we can hold more than 3.2 million bushels of grain,” she continues. “We receive grain at our east 70 and 194 locations, and
we can store additional grain at our downtown location.” The grain storage and handling capabilities received a good workout this year, as area crops were impressive. “The crop was huge— the most grain that I can remember ever taking into this facility,” Karan states. That covers quite a few harvests, as Karan has worked at the coop for 34 years. As one who has been a firsthand witness to several decades of change, Karan has a good perspective on the transition from UFI to Ag Producers. “The change has been received very well in the community,” she notes. “Ag Producers has done a lot of work on our grain facilities, and we’ve had a lot of compliments on the improvements.” Karan notes that great service and the cooperative advantage—profits returned to the farmer/owners—have earned Plainview a loyal customer base. “We’ll continue to do everything we can to earn their business,” Karan concludes. “Our customers are the reason we’re here.” ♦
Ike, 3, and a brand new baby girl, Aspen—also help keep her busy.
Custom trend
Currently, Sam runs four combines and has six or seven full-time employees on the custom side of the business, which continues to grow. “With the cost of new equipment, it takes more acres to justify purchasing your own,” Sam explains. “As a result, the older generation prefers to hire someone with the latest equipment and technology to do the work as opposed to buying the equipment themselves.” Sam is quick to point out that he would not have been able to grow and maintain his successful farming businesses without a lot of help. “We couldn’t do this without good customers and good help,” he states. “I have really good help, and keeping good people is one of the biggest challenges in this business. The past five years, we’ve been able to farm year-round, which helps.” Good relationships with other ag businesses are also important. Sam brings virtually all of his grain to the Spearman elevator, which recently became part of Ag Producers. “We also do a lot of custom fertilizer application, so we work hand-in-hand with their agronomy department,” he adds. “The transition has been smooth and Ag Producers is good to work with. Not only do I bring my grain in there, but I also bring in a lot of grain from our custom-harvesting customers. They’ve been real accommodating
on moisture requirements and hours of operation.” As a “veteran” beginning farmer now, what advice would Sam give to younger farmers who want to get into the game? “It’s not a sprint,” he says. “It takes time, because you have to build relationships with local farmers, lenders, co-ops, and businesses. A farmer in his 60s has been doing business in the community for 40 years. They know they can trust him. A young farmer just starting out has to earn that trust.” For Sam going forward, his goals are now pretty standard. “I have the universal goal—stay farming,” Sam laughs. “We have to find ways to deal with low commodity prices and more government regulations, keep our custom-farming customers satisfied, and keep the farm generating income on the personal side. You’re not going to get rich farming, but you’re going to enjoy going to work every day.” ♦
PO Box 430 • Sunray, TX 79086
What a Harvest! BY GARY HOLCOMB, GRAIN DEPARTMENT MANAGER
It’s a record! We knew this fall’s grain harvest was going to be big, but we received even more than our projections. As expected, we had storage space issues at several locations. Our employees worked extremely hard and put in long hours since this harvest was much longer than normal. We appreciate your understanding and patience. As Dave mentions, we are looking ahead to the future and making plans to expand and speed up our facilities. Since our last newsletter, commodity prices have been mostly in a sideways pattern, with no big news to change the fundamental outlook: big crops and stagnant demand. The situation around the world is about the same. Since we always look for China to engage as a big buyer and to support commodity prices in the U.S., there has been a lot of talk about the Chinese excess supply of grain and cotton. They have been buyers, but not up to last year’s level. Let’s hope they keep buying steadily through the year. Grain prices look to continue
sideways to lower until spring, when we usually have some kind of rally. Cotton prices have actually broken above the downtrend we’ve been in since July. However, most traders don’t see significantly higher prices in the near future. So whether you have 2015 crop grain or cotton to market, use rallies to get it sold. Expect grain basis to remain weak this year, due to huge local production. Our region is in a surplus supply situation much different than our usual deficit position. For 2016 crops, expect rallies (related to rumors of acreage shifts or planting problems in the spring) to start locking in prices. The 2016 harvest is a long way off, but with projected carryover supplies, there isn’t much reason for the market to sustain higher prices. Something will have to change in the production cycle—somewhere in the world—to alter the bearish supply and demand situation we have. Watch for notices of our annual Market Outlook meetings. We will have them in late January or early February. Thank you for your business! ♦
Sharing in the Spirit of the Season Each year, the Christmas season is a time of giving at the Plainview location. “All our employees are encouraged to donate canned goods and non-perishable items for the Faith in Sharing House in Plainview,” says Karan Estrada, Plainview assistant controller. The Faith in Sharing House is a place where families and individuals in need can receive a basket of food. “We’ve contributed for several years now as a way to help our neighbors in need,” Karen adds. ♦
