The Link - Fall 2024

FALL 2024

INSIDE THIS ISSUE:

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CHECK OUT OUR AGTEGRA FIRST INTERNSHIP PROGRAM

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SAVE THE DATE FOR THE 2024 ANNUAL MEETING

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LEARN MORE ABOUT SECTION 199A(g) Pictured: Agtegra Region Dispatch Manager Allen Neuharth, Agronomy Logistics Manager Neal Hiemstra and Agronomy Logistics Support Matthew Boomsma stand in front of the simulator they designed and built. Read more about how the trio pioneered one of the first simulator cabs in the agriculture industry on page 4.

BOARD OF DIRECTORS

President Rick Osterday | Java, SD

First Vice President Heather Beaner | Mellette, SD Second Vice President Matt Johnson | Webster, SD

TABLE OF CONTENTS

Secretary Steve Halverson | Pierre, SD

03 MESSAGE FROM LEADERSHIP

Directors Chad Boekelheide | Northville, SD Glen Crawford | Aberdeen, SD Joel Erickson | Langford, SD Jay Esser | Redfield, SD Chris Eymer | Reliance, SD Wallace Knock | Willow Lake, SD Jeff Lakner | Wessington, SD Steve Pfeifer | McLaughlin, SD Randy Sell | Oakes, ND Kim Vanneman | Winner, SD Andy Weisser | Roscoe, SD Nonvoting Advisory Directors Scott Baumiller | Hazelton, ND Jordan Nitschke | Jud, ND

MORE INFORMATION

To learn more about Agtegra's governance, visit agtegra.com/ governance, or scan the QR code below!

04 BUILT BY APPLICATORS, FOR APPLICATORS 08 AGTEGRA APPRECIATION NIGHT 10 TRIPLE PLAY 12 AGTEGRA FIRST INTERNSHIP PROGRAM 14 MONUMENTAL MILESTONES 16 2024 ANNUAL MEETING 17 GET TO KNOW THE DELEGATE & DIRECTOR CANDIDATES 23 WHAT IS SECTION 199A(g)?

24 DIRECTOR SPOTLIGHT: MATT JOHNSON 25 PATRONAGE TERMS: EXPLAINED 26 KIDS' CORNER 27 LOCAL AG FORUM

CONTACT US

605-225-5500 | www.agtegra.com Copyright 2024 Agtegra Cooperative. All rights reserved.

Agtegra Cooperative is a local agricultural cooperative headquartered in Aberdeen, South Dakota. It is owned by over 7,000 farmers and ranchers, predominantly in North and South Dakota, with a network of over 70 locations and 900 employees.

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FROM THE CEO JASON KLOOTWYK JASON.KLOOTWYK@AGTEGRA.COM

Hello!

As the harvest season winds down, I would like to thank you for your business and continued support of Agtegra Cooperative! The crop is big, leading to several record volume days at our locations and a tremendous amount of grain stored and piled. Lines have been long this fall with the bigger crop, and I want to thank our team for their commitment to service this fall, with few opportunities for a break and time spent away from family and friends. Fall has always been my favorite season of the year, representing the culmination of a year of effort into growing a crop.

Hopefully everyone has had a safe and bountiful harvest.

Agtegra closed out a great 2024 fiscal year, led by a strong year in Grain and Agronomy and record volumes in Energy. We will provide a more robust reporting of our financials at our upcoming annual meeting in December, but we paid almost $18 million out in patronage equity back to our patrons, invested $50 million in the business with improved assets and added $40 million in new equity to the balance sheet. The business performed well in FY 2024 and leapt right in with a strong start to FY 2025 with another record harvest.

Our capital planning for 2025 was completed this summer and will feature several new additions for capacity and service. I am proud of our board for approving another $52 million in capital reinvestments for the coming year. Some of the larger projects include faster fertilizer blending and loading, grain storage and agronomy product storage. Many of these projects are underway, and some have already been completed.

We recognize that the farm economy has entered a negative downtrend. We are diligently focused on managing operating expenses while maintaining the service quality that you expect from your local cooperative. We will continue to pursue growth where it is appropriate, and we must find ways to work with other cooperatives and partners to leverage size and scale to bring a better value proposition to you. I am proud of our team’s efforts on this, and I believe Agtegra remains in a winning position for opportunities that lie ahead!

I want to close by again thanking our customers for their business and our valued team members for their effort and dedication.

Stay safe, and have a great holiday season!

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BUILT BY APPLICATORS, Agtegra Agronomy Logistics Support Matthew Boomsma sits in the buddy seat while teaching an Innovation FieldFest attendee how to use the applicator simulator.

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FOR APPLICATORS Agtegra Cooperative team members design and build industrypioneering application simulator to train applicators.

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t is not often that you get to play video games at work, but three Agtegra Cooperative team members have discovered a way to leverage a popular video game for realworld applications, revolutionizing the training process for Agtegra applicators.

“It all started with the Farming Simulator game and really took off from there,” says Agtegra Agronomy Logistics Support Matthew Boomsma.

Matthew, along with Agronomy Logistics Manager Neal Hiemstra and Region Dispatch Manager Allen Neuharth, soon realized the magnitude of opportunities that something like Farming Simulator could unlock for the applicators they train at Agtegra.

“Our experiences with the game and realism started leading us to a lot of ‘why not’ questions. Why not use this as a training tool for our people because of how realistic it is? What better way to give handson experiences to our employees before they actually step foot in the field?” says Neal.

Customizing the Experience Many aspects of the Farming Simulator game already emulate characteristics of what farming looks like in the Midwest. However, the team knew they could customize the game to include Agtegra facilities and fields. Together, they created their own version of Farming Simulator that has an

Agtegra-specific map, complete with Agtegra machines and signage and customized field maps. The simulation contains a variety of fields that can be sprayed or spread with the application equipment the team loaded into the game.

But the trio did not just stop at creating their own version of the game.

“There are companies out there that create simulations that are similar to how ours functions, but very few, if any to our knowledge, have ever taken it that extra step and actually put it into a real cab,” says Neal. “That’s what makes ours really unique.”

The Agtegra simulation can be used with a computer monitor and a steering wheel control, but putting the simulation in a cab, complete with the cab’s control functions, puts everything into a more realistic training atmosphere.

The next step? Find a cab the simulation could be housed in.

“Last summer, we started talking to Case IH (CNH Industrial) about our idea, and they were able to find us a sprayer cab that did not pass inspection to be put on one of their own sprayers, but it would still work and be safe to be used for our purpose,” says Neal.

Once the team received the cab, they added three computer monitors to wrap around the inside of the cab’s windows so the simulation would feel just as if they were looking out the windows of

a real sprayer. Additionally, every other typical cab function works inside the simulator – from the air conditioning to the radio.

However, the team soon realized why others had not added the cab component to their simulations. To give people a real-life experience, the team wanted to make the controls in the cab function in the same way they would if they were in a real sprayer on a field. The challenge became connecting the controls to the simulation.

“I actually have an extensive background in coding, so I spent several long days building the custom code so that the controls in the cab would control the simulation,” says Matthew. “Because of our partnership with Case IH and Raven, I was able to consult them when deciphering code messages I was running into and turning them into button controls.”

Changing the Name of the Training Game After completing the simulator this summer, the team officially launched it to the public at Agtegra Appreciation Night in Huron, South Dakota, in August and again at Innovation FieldFest in Bath, South Dakota, in September. At the events, farmers and employees alike could try the simulator out for themselves.

“We got a lot of great feedback,” says Neal. “A lot of farmers were excited about it and wanted to train on it themselves.”

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"From the level of integration with most of the cab controls to the 'live' operation of the machine with the multiple displays, the experience is very real. This is going to allow for training at all levels, whether it's the most experienced operator reviewing precision software updates in the offseason or a new operator spending days in the simulator getting familiar with a machine before even stepping into one. This is going to be game-changing for preparing operators."

- Brent Bast, CNH Industrial Global Product Manager Crop Protection

To accommodate the substantial number of people at Appreciation Night who wanted to check out the simulator, Allen, Matthew and Neal also set up simulations with computer screens and steering wheels on a table next to the cab simulator. This set-up unlocks future opportunities for training many employees at one time with monitors and steering wheels while the cab simulator itself is being used – something that the team already plans to utilize this winter when they start training Agtegra applicators on the simulation.

“In the past, the challenge was not being able to get them in the field to train during the winter months when we have down time,” says Neal. “The simulator cab and the computer simulation set-ups allow us to provide that hands-on training on the basics of loading, applicating and logistics during the winter months, even though the simulation will look as if it were in season.”

In addition to training, the simulator serves as a recruiting tool for high school and college students to see what a career with Agtegra as an applicator could look like.

“We already have high schools reaching out to us wanting to

The 120° monitor view provides a real-world experience from the driver's seat of the simulator.

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see the simulator and have their students try it out,” says Matthew.

A few high school and college students already had the chance to experience the simulator at Innovation FieldFest, the popularity of the experience evidenced by the long line of students waiting to test it out.

Envisioning the Future The team does not see this simulator being the only one at Agtegra for long. Plans are already in the works to have a second training cab, in addition to continuing to improve the tools and technology in the cab to keep up with the changes made to equipment in the industry.

“In the future, we hope to have the simulator operate off satellite images instead of the maps we created so that everything from the roads to the trees to the fields will be exactly the same as they do in our customers’ real fields,” says Neal.

With the goal of expanding the simulator to include other cabs and simulation set-ups, the team, along with the help of a poll from Agtegra employees, named the project "Applicator Training Solutions (ATS)".

Neal sits in the driver's seat of the simulator.

While the simulation only includes application training right now, the team sees potential in adding the entire Agtegra workflow to simulations in the future – from the sale to dispatch to applicating to billing.

For now, the team is excited to launch their first training season with the simulator.

In Action Scan the QR code below to see what the simulation looks like on our YouTube channel, or check out the screenshots from the simulation on the right!

“Our end goal is to train our applicators with this quality experience so that we can provide the best service to our customers,” says Matthew.

Kids attending Agtegra Appreciation Night had the chance to check out the laptop version of the simulation while waiting their turn to sit in the simulator cab.

Want to see the simulator in person? Come to Local Ag Forum on February 7, 2025, in Huron, South Dakota! Learn more about the event and how to register on page 27.

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2025 Appreciation Night Ticket Qualifications

featuring

Agtegra offers full-service solutions for your whole farm - everything from ear tags to fertilizer! As a member-owner of a local cooperative, taking advantage of the comprehensive portfolio Agtegra has to offer benefits your farm, Agtegra and the community you live in.

We’re celebrating our employees and member-owners who support Agtegra’s whole offering with a summer concert!

PURCHASE OR SELL A MINIMUM OF $5,000 IN EACH CATEGORY TO RECEIVE CONCERT TICKETS! 4 categories = 2 tickets 5 categories = 4 tickets 6 categories = 6 tickets 7 categories = 8 tickets and 2 VIP passes 8 categories = 10 tickets and 4 VIP passes CATEGORIES:

Grain

Fertilizer

Crop Protection

Seed

Custom Application

Ag Tech & Innovation Center

Energy, Truck & Auto

Feed & Farm Supply

Qualifying purchase dates: August 1, 2024 - June 30, 2025. Performance will be held August 2, 2025, at the State Fairgrounds in Huron, SD. Agtegra Cooperative employees will receive 2 tickets.

Thank you to our business partners for helping support this event!

Watch our social media and website for more exciting Appreciation Night announcements to come!

WWW.AGTEGRA.COM/APPRECIATION-EVENT 9

TRIPLE PLAY Triple Play is designed to reward our most supportive customers who help us build a sustainable business that our member-owners believe is relevant to future success on their farms. We offer full-service solutions for the whole farm - everything from crop inputs to feed and fuel and grain.

Farmers who book and prepay their agronomy inputs by January 22, 2025 can qualify to receive Triple Play grain premiums, fuel credits, mineral feed discounts and more!

STRONG. STABLE. DEPENDABLE. LOCAL.

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$0.05/bu premium

$0.05/gal diesel fuel credit

$40/ton mineral discount

Learn more at www.agtegra.com

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INTERNSHIP PROGRAM Bristol Sales Agronomist Shane Clark (right) points across the field to show Sales Agronomist Intern Kaleb Antonsen (left) the coinciding map point on his iPad. Keep reading to learn more about the realworld experiences Agtegra interns receive during their summer internships.

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T

he Agtegra First internship program prides itself on providing college students with hands-on experiences in a variety of areas within our business. From grain marketing and agronomy to information technology and marketing and communications, our program allows interns to gain a real-world perspective of our industry and career opportunities.

Well-rounded experience

The goals of the program center around the "First" acronym from its title: Foundational excellence, Investment in our communities, Relationships with integrity, Skill development and Teamwork. In addition to their daily responsibilities in their program area, each intern participates in events with the rest of the internship class. Each event connects to the five core goals.

The program, which officially runs from May – August, includes a variety of skill and professional development events. The first intern event of the season is Kickoff.

The day is filled with educational

sessions where interns not only receive an orientation but also an opportunity to connect with fellow employees and the cooperative's leadership team.

Shortly after Kickoff, interns have the chance to learn more about the agronomy industry through Agronomy Day. Here, interns learn from our experts about weed identification, ag technology tools and other important agronomic topics that are vital to their internship experiences.

At Etiquette Day, Agtegra provides all interns with professional networking and etiquette training that they will be able to use in the rest of their schooling and professional careers.

As the summer progresses, all interns participate in Volunteer Day, which helps us show our interns the value the cooperative places on community and provides them with a chance to serve the community they have been working in or near all summer. This year, our interns volunteered in the Aberdeen and Huron communities at the Huron Library Kids’ Day Camp and Aberdeen Area Camp Dreammakers.

At the beginning of August, we bring the interns back together for

"The Agtegra First internship program gave me firsthand experience in areas specific to my degree and interests, as well as opportunities to learn and grow in other areas of the industry. They provided me with exceptional resources and individuals to ensure that I could be successful. I am so thankful for knowledge and connections I gained from this experience and am grateful knowing they will follow me for years to come."

- Rachel Teunissen, Communications Intern

our Intern Wrap-Up. This year, over half of the interns participated in the project challenge, in which they participated in actionable research and presented their findings to the leadership team. At the end of the Wrap-Up event, each intern who successfully completed the program receives a scholarship to their school.

2024 in review

This summer, Agtegra had 43 interns throughout our trade territory from 13 colleges, including South Dakota State University, Bismarck State College, Lake Area Technical College, Iowa State University, Dakota State University, Mitchell Technical College, Southwest Minnesota State University, Brigham Young University, Purdue University, Northern State University, South Dakota School of Mines and Technology, Jamestown University, and North Dakota State College of Science.

Learn more

Are you or someone you know interested in learning more about the Agtegra First internship program? Open internship positions can be found on our website at agtegra.com/internships.

"My Agtegra internship experience was much different than I expected - in a good way. Not only did I gain experience in agricultural practices, but I got to watch how people work with each other and how it varies depending on the person or conversation. My favorite part of my internship was riding around with agronomists, asking questions that I never would have thought of in a classroom setting. I learned much more this past summer than I expected and couldn't be more thankful for the people who helped me throughout the experience."

- Rhett Dykstra, Sales Agronomist Intern

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MONUMENT L

C

ongratulations to the following individuals for achieving a 30- or 35-year service milestone with Agtegra Cooperative during the 2024 fiscal year! We are incredibly grateful for their dedication to the Agtegra team during their time with the cooperative so far.

Gerrit BOOMSMA Years of Service: 35 Location: Huron Agronomy Position: Sales Agronomist "There never seems to be a dull moment working for Agtegra.

The organization has always been great in training people to reach the next level.

The caliber of people I have met and worked with over the years have been wonderful and great to work with; it has made the years fly by very fast."

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Jeff MCLAIN

Dave CLARK

Years of Service: 35

Years of Service: 30

Location: Agtegra Trucking

Location: Admin Agronomy

Position: Truck Driver/Operations

Position: Regional Sales Manager

"My favorite part of working for this company is all the friendships that I have developed between co-workers and producers over the years."

Steve WOODRING Years of Service: 35 Location: Redfield Agronomy Position: Truck Driver/Applicator "My favorite part has been working in the feed department."

"My favorite part about working at Agtegra has been the amount of people I've gotten to meet and how it's become a family over the years."

milestones

Christopher FARRELL Years of Service: 30 Retired Location: Agtegra Trucking Position: Truck Driver "Every day in Agtegra Trucking was different from the next, and I really enjoyed that part of my job."

Linda JOHNSON

Brent WIESENBURGER

Years of Service: 30

Years of Service: 30

Retired

Location: Admin Agronomy

Location: Admin Position: Administrative Assistant "My favorite thing about my job was to meet and greet people every day!

The highlight of my career was to be the voice of South Dakota Wheat Growers and Agtegra!"

Jay MARZAHN Years of Service: 30 Location: Redfield Agronomy Position: Assistant Manager "My favorite part about my career has been working with customers and employees and the technology advancement."

Position: Director of Agronomy Technology Services "I am very proud of the level of adoption of ag technologies under the Agtegra footprint by not only our employee team, but from our great patrons as well. We have an awesome staff to get this work accomplished."

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SAVE THE DATE - DEC. 18, 2024 | 1 P.M. DAKOTA EVENT CENTER

720 LAMONT STREET SOUTH, ABERDEEN, SD (with virtual option)

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s a local cooperative owned and governed by agricultural producers, our primary focus is always to serve our members.

During Agtegra Cooperative's Annual Member Meeting on December 18th, members will have the opportunity to learn more about the cooperative's accomplishments, earnings and patronage allocated and paid to patrons over the past year.

One of the essential ways members govern the cooperative is by voting to elect directors and delegates who represent the members. All members have received their ballot and voting information via mail, and election results will be announced at the annual member meeting.

Keep reading to learn more about this year's director and delegate candidates. The map to the right depicts Agtegra's territorial districts; members may vote for a director at-large and director and delegate candidates from their respective district.

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For more information about the annual member meeting, registration information and director and delegate candidate information, visit agtegra.com/meeting, or scan the QR code below:

AT-LARGE DIRECTOR CANDIDATES Every Agtegra member can vote for the at-large director position, regardless of which district they are from.

Scott Baumiller of Hazelton, North Dakota, grows winter wheat, barley, durum, corn and soybeans on his family farm with his wife and three sons. In addition to farming, Scott has worked with agricultural finance and insurance at the Bank of Hazelton for 33 years where he is the Senior Vice President. Scott has served on his local school board for 18 years, seven of which he served as president, and coached high school basketball for 15 years. Additionally, Scott has served as a firefighter and secretary/treasurer of Hazelton Fire Department since 1995, president of Hazelton Housing Board for over 20 years, and president of the Emmons County Housing Board for over 10 years. In the agriculture industry, Scott is currently the Emmons County Representative for the North Dakota Soybean Council and as a nonvoting advisory director for Agtegra Cooperative. Scott believes his qualities of integrity, honesty and determination along with his financial experience will serve him well in his role as an Agtegra director. When asked why he is interested in serving on Agtegra’s board, Scott responded: “I have always been interested in serving my community and industry. It is important to represent the patrons and consumers to communicate their needs and concerns.”

Jeff Messmer of Wessington Springs, South Dakota, farms and ranches with his wife and two of their sons. Together, they raise cattle and sheep and grow corn, soybeans, wheat and alfalfa in addition to running their pheasant hunting operation in the fall. Jeff has served as chairman of his local school board for six of his 12 years of service, county commissioner for four years and as an Agtegra Cooperative nonvoting advisory director for one year and delegate for two years. Jeff believes that his experience working with budgets, ability to work well with others and openness to new ideas will serve him well in the director role. When asked why he is passionate about the cooperative system, Jeff responded: “I believe in the cooperative because it is owned by the people that do business there. My family has been involved in co-ops for close to 100 years, and I believe it is important to be involved with cooperative governance.”

Matt Micheel of Cavour, South Dakota, operates a diversified agricultural enterprise alongside his family, producing corn, soybeans and livestock. Throughout his 32-year career as a Beadle County 4-H Leader, Matt has demonstrated leadership by serving two terms as association president and dedicating 12 years to his local township board, including four terms as supervisor. Matt has demonstrated a commitment to cooperative governance, serving as a delegate for Agtegra Cooperative for 22 years and a nonvoting advisory director for one year, in addition to participating in various committees before and after the merger. He believes his unique blend of skills and experience make him an ideal candidate for the director role. When asked about his motivation for participating in Agtegra's governance, Matt responded: “I am committed to maintaining local influence in the face of an expanding global agriculture economy, ensuring we stay true to our core values while remaining relevant. As a director, I will represent member-owners, Agtegra, and our communities, driving growth and expansion in our current and surrounding areas.”

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DISTRICT 1 DIRECTOR CANDIDATE Joel Erickson of Langford, South Dakota, grows corn, soybeans, small grains, alfalfa and cover crops in addition to raising cattle through a commercial cow/ calf and feedlot operation with his wife, daughter and son. Joel is currently on the Dakotaland Feeds Board of Governors and serves as his township’s supervisor. He has also served on his church board, Extension board and a no-till demonstration farm board. Joel is a graduate of the South Dakota Agricultural and Rural Leadership program and has received training from the South Dakota Association of Cooperatives and FCCS Advanced Governance Series. At Agtegra Cooperative, Joel has served as a director for over 20 years.

Joel’s open-mindedness, trustworthiness and listening skills are the top qualities he believes will serve him well in the director role.

When asked why it is important to be involved in Agtegra’s governance, Joel responded: “By being involved in the governance of Agtegra, I have a voice in the decision-making process of the cooperative and considering how those decisions will impact the membership as well as the employees of Agtegra.”

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DISTRICT 1 DELEGATE CANDIDATES

Nathan Duerre Bristol, SD

Colin Dutenhoffer Aberdeen, SD

Nick Jacobson Fullerton, ND

Christofer Nickeson Pierpont, SD

Darin Wiedebush Mansfield, SD

For biographies on each delegate candidate, visit agtegra.com/meeting, or scan the QR code above.

DISTRICT 2 DELEGATE CANDIDATES

Kurt Bindenagel Frankfort, SD

Christopher Heinricy Colman, SD

Keith Lambert Frankfort, SD

Andrew Boomsma Wolsey, SD

Brian Johnson Frankfort, SD

DISTRICT 2 DIRECTOR CANDIDATE Jay Esser of Redfield, South Dakota, grows corn, soybeans, wheat, alfalfa and hay and finishes cattle on his fourth-generation farm alongside his daughter, cousin and his cousin’s son. Jay has served on a variety of local, state and national boards, including his local school board, Redfield Energy Board of Directors, the South Dakota Corn Utilization Council where he serves as vice chairman and the National Corn Growers Association Ethanol Action Team. Jay has also served as a delegate, nonvoting advisory director and director for Agtegra Cooperative.

Jay believes his common-sense mindset, empathy and discipline to promote the board’s decisions will serve him well in the role of director.

When asked why he is passionate about the cooperative system, Jay responded: “I believe in the cooperative system because it is a way to do business in which I have a say or vote in. I believe in keeping control and assets in our territory. If there is a margin in the agricultural business, why not keep that margin here and share it with the patrons?”

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DISTRICT 3 DIRECTOR CANDIDATE Chris Eymer of Reliance, South Dakota, raises cattle, sheep and dairy goats with his wife and youngest son. In his community, Chris serves as township supervisor and president of his church. Chris has also served as a director for Agtegra Cooperative for 17 years and was secretary of the Kennebec Farmers Elevator Board.

DISTRICT 3 DELEGATE CANDIDATES

Kelvin Grey St. Lawrence, SD

Doug Halverson Kennebec, SD

Norval Millard Presho, SD

Andy Rankin Draper, SD

Chris believes that his 40+ years of farming and ranching experience, belief in the cooperative system and experience on the board will serve him well in the role of director.

When asked why he is passionate about the cooperative system, Chris responded: “My grandfather put his own money into the start-up of our local cooperative. It has been a part of our operation since I started. As a smaller scale farmer, being a part of Agtegra’s governance provides me with vital information in order for me to be a better farmer. Compared to doing business with a private company, doing business with the cooperative is a no brainer; we own this cooperative.”

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Dennis Simons St. Lawrence, SD

For biographies on each delegate candidate, visit agtegra.com/meeting, or scan the QR code above.

DISTRICT 4 DELEGATE CANDIDATES

Troy Beck Artas, SD

Jason Fauth Leola, SD

Charles Hettich Roscoe, SD

Kelly Bosch Strasburg, ND

Evan Haar Onaka, SD

Terry Ulrich Ashley, ND

DISTRICT 4 DIRECTOR CANDIDATE Andy Weisser of Roscoe, South Dakota, has a cow/calf and grain operation he runs with his dad, brother, wife and their four children. In his community, Andy is the assistant chief of his local fire department, and on the state level, he serves as a director on the South Dakota Soybean Association board.

Andy has been involved with Agtegra Cooperative’s governance through five years of experience as a delegate and three years as a director.

Andy’s willingness to learn and adapt to new ideas, enjoyment in volunteering his time to his community and approachability when it comes to farmers being able to come to him with an idea or concern are qualities Andy believes will serve him well in the director role.

When asked why he is passionate about the cooperative system, Andy responded: “You are working to serve friends, family, and neighbors who collectively own the cooperative and join together to do business globally.

You are also a part of a cooperative family that has the strength to buy inputs at a better price and sell products at a higher value for our farms’ success.”

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CONFIDENT COMFORT. Without the headache.

Life is busy. Rest easy knowing Agtegra will keep you safely supplied with propane to power your home, farm or business.

Scheduled Delivery takes ordering propane off your to-do list.

We monitor your tank levels and automatically schedule a refill delivery when you need it. www.agtegra.com/propane 22

Topics On Capitol Hill: WHAT IS SECTION 199A(g)?

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n addition to the Farm Bill, Section 199A(g) has been a high-priority government affairs topic for farmerowned cooperatives this year.

Section 199A(g) is set to expire in 2025. The original version, known as Section 199, was first enacted in 2004 and was most recently extended in 2018 when it became 199A. Section 199A(g) is a federal tax deduction that applies to proceeds from agricultural goods produced and marketed by farmer cooperatives. The deduction benefits farmer-owned cooperatives and their member-owners, as cooperatives often pass much of the deduction through to their memberowners.

The Section 199A(g) tax deduction passed through from a farmer cooperative to its member-owners gives farmers the opportunity to decrease their federal tax bill and reinvest these dollars in their

farming operations and rural communities. Farmer cooperatives may also benefit by taking advantage of the tax deduction by utilizing these dollars that would otherwise be paid to the federal government to reinvest in facility upgrades that benefit memberowners with better services.

These facility reinvestments often strengthen the rural communities where a cooperative facility is located through job creation and investment that helps create economic resilience for that rural community.

Located in the heart of rural America, Agtegra Cooperative is no stranger to the benefit of Section 199A(g). Since 2004, Agtegra has passed through millions of dollars in federal tax savings to its memberowners, in addition to utilizing tax savings from Section 199A(g) to reinvest and improve facilities across its trade territory in North Dakota and South Dakota.

Without Section 199A(g), Agtegra would not be permitted to pass through any federal tax savings to its member-owners, and its federal tax expense would materially increase, resulting in a decrease in earnings that would have otherwise been returned to the member-owners as patronage. It is vitally important to rural America that Congress extends Section 199A(g) beyond 2025, or even make it permanent.

Section 199A(g) Impact on Agtegra Cooperative MemberOwners Over the last 10 years, Agtegra has passed $140M in Section 199A(g) deduction through to its memberowners. Farmers use these federal tax savings to reinvest in their own farms and rural communities.

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DIRECTOR Spotlight MATT JOHNSON

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att Johnson farms with his wife, Melanie, and brother, Ben, near Webster, South Dakota. They grow corn and soybeans together. Matt and Melanie have three daughters: Kennedy, Jersey, and Portlyn.

Matt attended South Dakota State University for ag business before returning home to the farm. He is a graduate of Class V of the South Dakota Ag and Rural Leadership program (SDARL).

Matt has been involved with the governance of a cooperative for 18 years.

"My experience as a director for the past 18 years has helped me gain a broader knowledge of agriculture worldwide," explains Matt. "It has been a great experience to serve on Agtegra's board of directors, and I am very passionate about the cooperative system and want to continue to help navigate this company into the future for current and future generations."

Today, the value of the cooperative system is more important than ever before. Consolidation in the mega agricultural sectors has limited our choices to a handful of companies in crop protection, crop nutrients, grain, energy export, and transportation.

This is one reason I'm so proud of Agtegra, its employees, and its management for navigating through this and having a spot at the table to negotiate with these companies while providing the best service possible to our patrons.

- Matt Johnson

Pictured: Matt's family: Melanie, Portlyn, Matt, Jersey and Kennedy Johnson

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During his time on Agtegra Cooperative’s board, Matt has been elected Second Vice President by his peers. He currently serves on the board’s executive and governance committees. Outside of Agtegra, Matt also serves as chairman for James Valley Grain, LLC. Some advice Matt would offer to an agriculture professional interested in becoming more involved within their co-op would be: "Running for delegate or nonvoting director and taking part in some of the meetings that Agtegra hosts throughout North and South Dakota would be a great way to start," recommends Matt.

Read more about who is running to serve on Agtegra's board of directors and delegate council and details about this year's annual meeting on pages 16-21.

PATRONAGE O

ne of the benefits of doing business with Agtegra Cooperative is being eligible to receive patronage equity. Patronage equity is the portion of Agtegra’s profits that are allocated to patrons based on eligibility and how much business that patron did with Agtegra each year. If you are a patron, you have ownership in the cooperative when you are allocated patronage equity.

There are two types of patronage equity that can be allocated: qualified patronage equity and nonqualified patronage equity. When the Agtegra Cooperative Board of Directors approves a patronage equity allocation, it must determine if it is a qualified patronage equity allocation, a nonqualified patronage equity allocation or a combination of both. One key difference between qualified and nonqualified patronage equity is when the patronage equity is reported as income for tax purposes.

TERMS + LINGO: EXPLAINED

A qualified patronage equity allocation is reported as income to the patron in the year it was allocated. For example, if Agtegra Cooperative allocates qualified patronage equity in October 2024 to a patron, Agtegra Cooperative will send that patron a 1099PATR for calendar year 2024 in early 2025.

A nonqualified patronage equity allocation is reported as income to the patron in the year it was paid. For example, if Agtegra Cooperative allocates nonqualified patronage equity in October 2024 to a patron, Agtegra Cooperative will mail a letter to the patron that provides the patron with notice that they have been allocated nonqualified patronage equity, however, Agtegra Cooperative will not send that patron a 1099PATR for their nonqualified patronage equity allocation until Agtegra Cooperative pays the patron the nonqualified patronage equity.

After the end of the fiscal year

(August 1 – July 31) and completion of the audit, the Agtegra Cooperative Board of Directors will allocate a portion of the profits to eligible patrons in the form of patronage equity. This allocation is also known as a current-year patronage equity allocation. A portion of the currentyear allocation is often paid in cash, with the remainder remaining on the books and records of the cooperative as patronage equity held in the name of the patron.

Each year, the Agtegra Cooperative Board of Directors will also determine whether or not to revolve (or pay) patronage equity that was previously allocated to its patrons.

This payment is referred to as revolving old-year patronage equity.

Patronage equity is only payable to the patron at the discretion, and upon the approval, of the Agtegra Cooperative Board of Directors.

Have patronage questions? Call our patronage department at 605-7258410.

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Let's talk about

K I D S'

GRAIN SAFETY

It's important to be safe around grain bins! Learn more about grain bin safety in the graphic below.

Grain storage bin entry is very dangerous.

Farmers, ranchers and other agricultural workers should only enter a grain bin with the proper safety equipment, and even then, only when absolutely necessary. Children should never enter grain bins.

How quickly does grain flow in a grain bin?

If grain starts flowing, you only have 2-3 seconds to react.

C O R N E R 26

In 4-5 seconds, you are trapped.

After 22 seconds, you will likely be completely covered in grain.

See a bin? It's not a playground! Talk to an adult about how grain is stored on the farm, but never enter one to see for yourself.

For the Parents:

Entering a grain bin? Do it safety with a Bin Entry Kit from Agtegra Cooperative. Call the Agtegra Safety team at 605-725-8387 to learn more and to purchase.

LOCAL AG FORUM February 7, 2025 | DEX, Huron, SD Register to attend at agtegra.com/localagforum

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908 Lamont Street South Aberdeen, SD 57401

Attend a 2- or 4-year institution in North or South Dakota Pursue an agricultural degree/ program or career field after college graduation Apply by January 17, 2025

COLLEGIATE

APPLICANT QUALIFICATIONS:

HIGH SCHOOL CLASS OF 2025

APPLY FOR THE AGTEGRA AGRICULTURAL SCHOLARSHIP!

10 SCHOLARSHIPS

$1000

1

value

SCHOLARSHIP

$1000

value

FOR SCHOLARSHIP APPLICATION AND MORE DETAILS, VISIT AGTEGRA.COM/SCHOLARSHIP