The Link - Spring 2023

SPRING 2023

THANK YOU FOR SUPPORTING AGTEGRA COOPERATIVE!

INSIDE THIS ISSUE:

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COVER STORY: EXPANDING AGTEGRA'S FOOTPRINT p.08

CELEBRATING 5 YEARS AS ONE COOPERATIVE p.14

Pictured: Justin & Jason Landis at the Colman, SD office.

A GLIMPSE INTO AGTEGRA ENERGY, A CONVERSATION WITH MILT HANDCOCK

Photo Credit: Rich Guill Aberdeen, SD

FROM THE CEO

JASON KLOOTWYK - JASON.KLOOTWYK@AGTEGRA.COM

By the time this goes to print, we will be close to entering the last quarter of our fiscal year, and what a year it has been! It has been a year of much change at Agtegra, starting with my role as CEO. There have been a host of other changes as new team members have joined the organization through recruitment, growth and acquisitions. I’m very thankful for the support I continue to get from our memberowners and employees as we build an organization we can all be proud of. We have a lot of work to do yet, and I know we are far from perfect, but we go to work every day focused on bringing more and better value to your farms and families.

A big focus this year has been growth. We have been blessed with many opportunities to strategically grow our grain, agronomy, energy and feed businesses, and we have executed on several projects in those areas and will continue to seek out strategic opportunities to grow. We also are pursuing several internal projects that are designed to bring more value to our core customers by adding new and improved assets, removing bottlenecks in grain handling and agronomy operations and increasing customer access to fuel and animal nutrition products through new and upgraded energy and feed locations. It’s an exciting time at Agtegra for our customers and employees!

Agtegra is performing well at this point in the year, led by strong performance in grain and feed. We have a big agronomy season coming, and we shall keep our fingers crossed for favorable spring weather. We sit in a great spot with a strong balance sheet so that you can continue to be confident that Agtegra will remain strong, stable and dependable.

In closing, I know you have many places that you can do business, and I appreciate that you choose to patronize Agtegra. Thank you for your business.

Have a great spring planting season!

EXPANDING AGTEGRA'S FOOTPRINT

Located just a few miles off I-29, Agtegra’s Colman location has become the easternmost location in Agtegra territory. Formerly known as Landis Ag, the location joined Agtegra in September 2022.

“Agtegra was already providing some technology services to customers in the Colman area,” said Jason Klootwyk, Agtegra CEO. “This acquisition gives us the opportunity to bring the full measure of our offerings to those customers. It also provides a point for future growth, and we are honored to do it with the Landis family. They serviced the area for many years, and it’s great to have them on the team as we move ahead.”

The location, managed by Jason Landis, is one that has been in the Landis family since it was started in 1990. Jason and his brother, Justin, the location’s sales agronomist, started working for the business at a young age as they followed in the footsteps of their dad, Robert, who owned the business.

“Our dad started Landis Ag by selling chemical out of the back of his pickup,” Justin said.

Throughout high school, the pair of brothers could be found helping their dad or area farmers. Jason later graduated from Willmar Technical College with a degree in agricultural business, while Justin pursued agronomy classes and a degree in recreation at South Dakota State University while also playing football for the Jackrabbits.

After college, they both joined their dad full time at Landis Ag, and in 2022, Robert retired from the business after serving the Colman community’s agronomy needs for over 30 years.

“I had always wanted to work with my father after I graduated,” said Jason. “I’m grateful for the 30 years we got to work alongside each other.”

UPGRADING THE BUSINESS

Over the years, many changes were made to the family business. In 1995, Robert bought the company’s first sprayer. A few years later, he bought a fertilizer plant from Cargill. As time marched on, Landis Ag continued to find new opportunities to grow and increase their equipment inventory to help them better serve their customers.

Today, the location includes an office building, which was built in 2012, a shop, a chemical shed and the fertilizer plant. The shop and chemical shed were originally built on Main Street in Colman but were later moved to their current location just outside of town after being purchased in the late '90s.

Jason and Justin are looking forward to construction projects that are in the works, including bulk liquid fertilizer storage, bulk chemical storage and a bulk seed system, which will include two seed tanks and a treater.

JOINING THE AGTEGRA TEAM

Location upgrades are not the only business opportunities the Landis brothers are excited about. Joining the Agtegra team has created opportunities for both them and their customers as their portfolio of products and services have expanded to include Agtegra’s wide array of offerings.

“We’re really looking forward to being able to offer more rewards to our customers,” said Justin. “Agtegra’s financing options and sales programs are exciting opportunities for our customers too.”

Their transition to becoming an Agtegra location has allowed them to meet several of their new Agtegra co-workers from across the region as they start implementing the cooperative’s systems and procedures.

“The people we work with at Agtegra are what I’m really looking forward to as a member of their team,” said Jason. “We think it’s really going to grow from here.”

The Colman location is outside of Colman, SD, along South Dakota Highway 34. The location features an office building, a shop and a fertilizer plant.

Formerly known as Landis Ag, Colman joined Agtegra in September 2022.

Justin Landis, left, and Jason Landis, right, walk around the Colman location. Justin, the location sales agronomist, and Jason, the location manager, have worked at the location since their dad, Robert, started the business in 1990.

LIVING THE LOCAL LIFE.

Upholding strong community values

Agtegra’s value of local is reflected in the Colman location’s emphasis on supporting the community. Through their business, they have supported their local school, FFA chapter, 4-H groups, fire department, churches, local athletic teams and other city organizations. Since joining Agtegra, they have already donated bottled water to events held at the school.

Additionally, Jason, Justin and two more of the location’s employees, Jess Berg and Alec Landis, all serve on Colman Volunteer Fire & Rescue. Jason has been the fire chief for 13 years and a firefighter for 26, and Justin has served for 15.

From long-standing community support to their strong background in the industry, the Landis family has built a strong foundation for their location as they continue to serve the Colman community as Agtegra.

Agtegra Invests in EGT, LLC

In November 2022, Agtegra finalized its acquisition of a minority interest in EGT, LLC. EGT is the owner and operator of a Pacific Northwest export grain terminal and four high-speed rail terminals in Montana.

“We are very excited to become a partner in EGT to provide Agtegra customers greater access to the global market,” said Jason Klootwyk, Agtegra CEO. “Agtegra continues to focus on growth that expands our presence along the supply chain, and this acquisition provides balance in our grain portfolio as we push farther down the export value chain.”

Agtegra joins Bunge, a leading agribusiness and food company, and Pan Ocean America, an affiliate of Harim, an integrated Korean group, as partners in EGT.

“We are pleased to add Agtegra as a partner, expanding EGT’s origination capabilities to ensure a reliable flow of products to the export terminal in Longview, Washington,” said Jason Gertken, EGT president. “We also look forward to working with Agtegra’s farmer members to increase opportunities to reduce our carbon footprint through regenerative ag practices.”

This investment in EGT will provide Agtegra with deeper market access, thus providing Agtegra member-owners more destination options when they sell commodities to Agtegra. This will also allow Agtegra to better predict when global buyers are interested in purchasing U.S. commodities and allow Agtegra member-owners to capitalize on this interest.

EGT is in a winning position with best-inclass assets, including the newest and most efficient, U.S. based, Pacific Northwest export terminal. By having an ownership stake at both origin and now destination, Agtegra sits in a better position with the BNSF railroad for service and negotiations.

Erwin Added to Agtegra Trade Territory

On February 1, 2023, Agtegra acquired Erwin Grain, a seed and crop protection business located in Erwin, South Dakota. This asset will enable Agtegra to better serve core agronomy customers in the Willow Lake area in addition to gaining new customers in Erwin and its surrounding communities.

Erwin Grain has been owned and operated for many years by Rodney and Randy Page, who farm in the area.

Contact Austin Janssen, Sales Agronomist, or Ryan Schuchhardt, Central Region Sales Manager, with questions about agronomy in the Erwin area.

Agtegra celebrated its fifth anniversary as one cooperative on February 1, 2023. Forming from the unification of two farmer-owned cooperatives, North Central Farmers Elevator and South Dakota Wheat Growers, Agtegra has become one of the largest locally-owned cooperatives in the nation. In fact, the unification itself was the largest locally-owned co-op merger in U.S. history at the time of the merger.

THANK YOU

Rizor Joins Agtegra Team as COO

Agtegra is pleased to announce and welcome Mike Rizor as its new Chief Operating Officer. In this role, Mike will oversee all aspects of safety, operational execution, transportation, application and dispatch, capital planning and operational efficiency.

Mike is an experienced operations executive with over 30 years of industry experience, including leadership roles with Land O’Lakes, Cargill and Agspring. Throughout his career, he held roles as the Vice President of Operations, Director of Strategic Sourcing,

27+ years of service

Transformation Program

Manager and Operational Excellence Leader.

In Mike’s free time, he enjoys spending time with his family, reading, home projects, gardening, and working on his family’s hobby farm where they have three horses, two dogs, barn cats and chickens.

11 years of service

Pictured: Mike, his daughters, Maggie, Libby, Maddy and Ellie, and his wife, Anne

Mike Clements Miller, SD

Lance Hanson Groton, SD

DIRECTORS

DIRECTORS

Chad Boekelheide Northville, SD

Justin Deutsch Pierpont, SD

Applicator of the Year

'23

South Dakota Agri-Business

Association Applicator of the Year: Kobus

Langenhoven

Every year, the South Dakota Agri-Business Association awards an Applicator of the Year to a South Dakota applicator who goes above and beyond to care for crops, customers and their community. Agtegra applicator Kobus Langenhoven was recognized as the 2023 award recipient.

“When I was hired at Agtegra, one of the goals I set was to work towards becoming Applicator of the Year,” Langenhoven said. “It was a big accomplishment for me to achieve and to see my hard work pay off.”

Langenhoven grew up on a vegetable farm by Mossel Bay in South Africa. Coming to the U.S. on a work visa in 2014, Langenhoven worked at a farm near Huron where he gained five years of experience working with equipment, spraying and other farm labor.

“I've always been in agriculture,” Langenhoven said. “Running equipment is what I have always liked doing, and becoming an applicator has always been something I wanted to do.”

Langenhoven became a certified applicator in March 2019 and started working at Agtegra’s Carpenter location later that fall. He now covers 45,000-47,000 acres annually with a strip tiller, spreader and sprayer. In addition to his applicator duties, he also drives truck, performs maintenance on equipment and helps other locations as needed.

“Kobus goes over and above with the service that he provides to our customers,” Jared Madsen, Carpenter Location Manager, said. “He treats every single field that he is in like it is his own and always makes sure the customer is happy. Kobus cares so much about the work that he does and pushes himself to be better every single day by learning and growing.”

Kobus and his wife, Jenna, and daughter, Chesney.

Kobus grew up on a farm and brings years of experience to his work.

FEATURING

WITH SPECIAL GUESTS THE FRONTMEN

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.

HOW MEMBERS CAN EARN TICKETS:

Purchase or sell a minimum of $5,000 in at least 4 categories to receive:

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

Qualifying purchase dates: August 1, 2022 - June 30, 2023. Performance will be held August 5, 2023 at the State Fairgrounds in Huron, SD. Please reach out to your local Agtegra representative with questions regarding ticket qualifications. Thank you to our business partners for helping to support this event!

STEVE HALVERSON Spotlight

Steve Halverson is a fourth-generation farmer/rancher and operates a diversified farm consisting of winter and spring wheat, milo, corn and soybeans in Lyman County. He also runs a cow/calf operation and retains ownership of the calves. Additionally, since 1985, he has operated Halverson Hunts, a commercial pheasant hunting operation.

Halverson has an Associate of Arts degree in general agriculture from South Dakota State University and is a graduate of Class I of the South Dakota Ag and Rural Leadership program (SDARL).

In 2014, Halverson was involved with the Rails to the Future group and worked to rebuild the railroad from Chamberlain to Presho. The group worked closely with the cooperative to help secure state and federal funding for the project. As a result of this collaboration, he became extremely impressed with the co-op staff and board and their commitment to the memberowners of rural South Dakota. A few years later, he was approached to run for its board of directors.

“I knew immediately that I wanted to be a part of this organization,” states Halverson.

Halverson has sat on several boards for organizations such as SD Wheat Growers, Rails to the Future, SD Wheat Commission, U.S. Wheat Associates, SD Corn, SD Habitat Conservation Fund and the SD Second Century Habitat Fund.

“Educate yourself on the industry and step up and run for a delegate or director position in your district,” says Halverson. “Agtegra needs leadership at the local level to be successful.”

Photo: Steve Halverson and his family

DIRECTOR

Advice Halverson offers for those interested in getting more involved in the agriculture industry is to apply for SDARL, as he believes this program is a great start for anyone looking to become more involved. He also encourages people to attend local meetings and Agtegra’s annual meeting.

A Glimpse into Agtegra Energy

Q:Reflecting on 2022, what was the energy division’s biggest accomplishment?

A:When I started this role, my focus was on safety and people and is now more strategic. Safety has elevated to our top priority, and we are progressing nicely. In 2022, our emphasis was on creating synergies within the division to create a positive experience for our customers that drove value for their business. Now that we’ve become more collaborative across our three product lines of refined fuels, lubricants and propane, we are focused on collaborating with the agronomy, grain and feed teams to create an even better Agtegra customer experience. I believe the team has made great strides in getting the right people in the right roles to better serve customers.

Q:How has the energy sales team increased efficiency in serving our customers?

A:We recently implemented Agtegra Sales Hub, which is a digital sales enablement tool for Agtegra’s energy, agronomy and grain sales teams. The platform allows our salespeople to do business with customers anywhere. It creates an opportunity to streamline the contracting process from pricing products to capturing a digital signature at the time of sale. This also protects the company with real-time sales reporting so pricing can be locked in and hedged to manage futures and basis risk. The Sales Hub also encourages cross-divisional collaboration amongst our sales teams since all Agtegra salespeople use the tool.

Q:Diesel shortages have made news headlines

A conversation with Milt Handcock, Vice President of Energy and Feed

over the last few months. How does Agtegra ensure supply is still available for Agtegra customers, and what services can they utilize to keep from running out?

A:Agtegra uses its size and scale to procure a consistent supply of gas and diesel. We are consistently in the top two of Cenex’s premium diesel retailers in the nation, which puts us at the top of the list when supply gets tight. We also lease 1.8 million gallons of condo storage from Cenex at the Wolsey terminal, which helps bridge the gap when product flows are uncertain.

For propane, we contract product early and with several wholesalers to ensure a reliable supply. We also have over 1.1 million gallons of storage capacity for propane.

Q:What is the outlook for 2023 in the energy markets?

A:It looks like the supply issues are working themselves out. We are starting to see inventories on national and international levels start to replenish. There are still uncertainties with the Russia/ Ukraine conflict and ongoing COVID outbreaks, so we can never be certain what will happen. The only certainty in the markets will be continued volatility.

We will always be competitive within our market. We encourage our customers to secure product early to ensure inventory on the farm when they need it. We have tools to help mitigate risk. The best way to reduce risk and smooth volatility is to sign up for our Level Management System for refined fuels or our Level

Pay and Scheduled Delivery Programs with propane.

We will continue to look for opportunities that drive value and create patronage for our member-owners. Our goals must align with our customers’ goals to be able to create a trusted partnership.

Thank you for your business, and we look forward to continuing to earn it!

2022 DIRECTOR ELECTION RESULTS

Thank you to all of our members who ran in the 2022 election!

Matt Johnson District 1 Webster, SD

“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.”

Heather Beaner District 2

Mellette, SD

“Agtegra is poised to grow even more, but we also want to continue to function as ‘the local elevator’ that our grandparents founded. I wish to continue serving Agtegra and our farmer-owners to help ensure this transition to national player is balanced with local needs.”

2023 APPOINTED NONVOTING ADVISORY DIRECTORS

“I am very excited to be part of a great organization. I believe in the cooperative business model. I applied because I wanted to gain knowledge from what I believe is a great team doing a valuable service to myself and my fellow ag producers.”

Kim Vanneman District 3 Winner, SD

“Agtegra Cooperative will play a role in supporting the next generation of agriculture. I am excited to use my past experiences and education to help navigate Agtegra to the next generation of success for the cooperative and for producers.”

Steve Pfeifer District 4

McLaughlin, SD

“As a director, my vision for Agtegra is to continue to provide quality customer service for grain and agronomy and to continue to help meet the needs for our producers. Farms would not be as successful without cooperatives, and we need to continue to communicate the value of the cooperative system with todays’ youth.”

Chad Boekelheide At-Large District Northville, SD

“It’s a privilege to be elected and serve as an Agtegra director. I’m excited to be a board member of a company that plays such a vital role in the agricultural industry in the Dakotas.”

“I am looking forward to learning as much as I can about the inner workings of our co-op. I believe our board is leading Agtegra in the right direction and am excited to be a part of it.”

Jeff Messmer Wessington Springs, SD

Matt Micheel Cavour, SD

Agtegra held its annual member meeting on Wednesday, December 14. Due to weather, the meeting was held virtually. Agtegra Board President Rick Osterday chaired the official business meeting, which covered topics including the cooperative’s financial results, messages from management, election results, and recognition of two retiring directors.

2022 Annual Meeting In Review

Agtegra CEO Jason Klootwyk reflected on major accomplishments throughout the year, including expanding locations, supporting local communities, investing in and maintaining core assets, transforming organizational culture and emphasizing safety in the workplace. These efforts to focus on safety have resulted in 16 Governor Safety Awards and 63 GEAPS Safety Awards, demonstrating Agtegra’s commitment to a safe work environment. Furthermore, Klootwyk highlighted Agtegra’s long-range strategic plan and priorities.

FISCAL YEAR 2022 HIGHLIGHTS

$16.1 million local income Strong balance sheet

2022 DELEGATE ELECTION RESULTS

DISTRICT 1: Chad Brandt, Oakes, ND; Justin Deutsch, Pierpont, SD; Casey Nilsson, Mansfield, SD; Matthew Sperry, Bath, SD; and Carson Stange, Stratford, SD

DISTRICT

DISTRICT

2: Mark Boekelheide, Northville, SD; Nathan Glanzer, Carpenter, SD; Randy Nelson, Carpenter, SD; Rory Troske, Turton, SD; and Eric Zell, Cavour, SD

3: Matt Bossly, Faulkton, SD; Jerry Busch, Kennebec, SD; Liam McManus, Reliance, SD; Ronnie Prien, Stickney, SD; and Slade Roseland, Faulkton, SD

DISTRICT 4: Don Eberle, Strasburg, ND; Richard Fergel, Shields, ND; Andrew Hulm, Hague, ND; Candice Mizera, McLaughlin, SD; and Darin Vetch, Onaka, SD

Bull Nutrition: Feed Your Investment Right

Tagging new calves. Moving pairs. Scraping pens. It can be easy to put your herd bulls on the back burner during spring calving season.

However, bulls need to maintain a high level of nutrition during the spring to have a successful breeding season in a few short months. Bulls are an investment in your future calves’ genetics; make sure to pay close attention to the quality and quantity of what you are feeding them so they can produce the quality of calf crop you have spent time and resources planning for.

Tips to help prepare bulls for breeding season:

Schedule a breeding soundness exam (BSE) with your veterinarian. This exam ensures your bulls are both fertile and physically capable of breeding your cows.

Evaluate your energy. Bulls need a little extra energy reserve so they can maintain themselves in adequate breeding condition throughout the breeding season.

Time your nutrition plans accordingly. It takes a bull 60 days to develop viable sperm for breeding, which means a solid nutrition plan needs to be in place for at least 60 days prior to bull turnout.

However, too much energy can cause fat to accumulate in the scrotum, which compromises semen quality. Bulls in poor condition can also have reduced semen quality. Keep their body condition up. Bulls should be at a body condition score of 5 or 6 at 60 days prior to breeding.

Don’t short on protein. Especially when feeding yearlings, protein is critical to helping your bulls continue to build the muscle they need to cover cows at breeding.

Use the Availa-4 trace mineral program. It helps to positively impact fertility and maintain better semen quality in the face of a heat stress event.

A lifelong career

BOB FLUKE RETIRES AFTER 45 YEARS

A LEGACY OF DISTINCTION

“Bob has a natural affinity for the people in the business, our customers and our employees. He has maintained the highest standards of integrity and customer service for 45 years, and I’m honored I got to work with him. We are going to miss him dearly, but we wish him all the best in retirement.”

Jason Klootwyk, Agtegra CEO

Not many people can say they have stayed with one company for their entire career. But those people are not Bob Fluke, who retired from Agtegra in December after 45 years with the cooperative.

Graduating with an agricultural business degree from Lake Area Tech in 1977, Fluke moved back to his hometown of Bath, South Dakota, and started his career at Bath Fertilizer in operations and as an applicator. A year and a half later, he became the assistant manager and managed parts for the company.

After seven years in Bath, Fluke and his family moved to Chamberlain where he was an agronomist. When Chamberlain split into its grain and agronomy divisions, he assumed the agronomy location manager role. After 25 years in Chamberlain, Fluke was promoted to manage the cooperative’s central region in the fall of 2009. In 2017, he then transitioned to managing the south region, which is the role he held until retirement.

When asked why he chose Agtegra as a fresh college graduate, Fluke noted how he knew it was going to be a great place to grow his career.

“To me, Agtegra is one big family. I’ve had a lot of opportunities, and they’ve always treated me and my family so well,” Fluke said.

Working in agriculture had been Fluke’s goal since he was a young boy watching and helping his grandpa and uncle on their farm outside of Bath.

“I knew I couldn’t farm myself, so I did the next best thing – work with farmers,” Fluke said. As he pursued his degree in Watertown, he obtained a summer internship with Selby Equity Exchange where he gained valuable work experience in the industry hauling fertilizer and doing application work.

What's Next for Bob?

In his retirement, Fluke plans to spend more time with his wife, Jean, and his two children and their families, including his six grandchildren. He also hopes to be able to ride his motorcycle more.

“Man, 45 years was over in a hurry,” Fluke said with a laugh. “I’ve had a great career with a great company, and I’ve always enjoyed what I do.”

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908 Lamont Street South Aberdeen, SD