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Linn Co-op

PIPELINE

September 2018 Volume 5, Issue 4


LINN CO-OP PIPELINE Linn Cooperative Oil Company September 2018

Volume 5, Issue 4

The Linn Co-op Pipeline newsletter is published and distributed to Linn Cooperative Oil Company members and customers to provide education and information leading to the success of their business and to share in the value of cooperative membership. www.linncoop.com

DATE

6/4/2018 6/5/2018 6/6/2018 6/7/2018 6/8/2018 6/11/2018 6/12/2018 6/13/2018 6/14/2018 6/15/2018 6/18/2018 6/19/2018 6/20/2018 6/21/2018 6/22/2018 6/25/2018 6/26/2018 6/27/2018 6/28/2018 6/29/2018 HIGH LOW AVG

CURRENT

OCT-17

9.69 9.77 9.69 9.78 9.62 9.71 9.42 9.52 9.37 9.47 9.21 9.31 9.22 9.32 9.04 9.16 8.95 9.08 8.73 8.88 8.76 8.89 8.55 8.69 8.55 8.68 8.46 8.59 8.60 8.74 8.40 8.53 8.33 8.45 8.33 8.47 8.27 8.41 8.24 8.38 9.69 8.24 8.87

Corn CURRENT

OCT-17

3.63 3.66 3.60 3.59 3.60 3.50 3.61 3.59 3.49 3.47 3.42 3.40 3.42 3.45 3.45 3.39 3.41 3.42 3.34 3.40 3.66 3.34 3.49

3.76 3.79 3.75 3.72 3.73 3.66 3.73 3.72 3.60 3.58 3.52 3.51 3.51 3.53 3.53 3.47 3.51 3.51 3.44 3.49

DATE

CURRENT

OCT-17

Corn CURRENT

7/2/2018 8.21 8.27 3.27 7/3/2018 8.16 8.22 3.33 7/4/2018 4TH OF JULY 7/5/2018 8.07 8.13 3.33 7/6/2018 8.45 8.52 3.41 7/9/2018 8.18 8.30 3.35 7/10/2018 8.18 8.29 3.29 7/11/2018 7.96 8.06 3.22 7/12/2018 7.91 8.07 3.28 7/13/2018 7.76 7.92 3.24 7/16/2018 7.87 8.03 3.27 7/17/2018 7.97 8.13 3.32 7/18/2018 8.00 8.15 3.33 7/19/2018 8.04 8.19 3.37 7/20/2018 8.07 8.17 3.41 7/23/2018 8.05 8.15 3.41 7/24/2018 8.16 8.26 3.36 7/25/2018 8.18 8.28 3.41 7/26/2018 8.19 8.29 3.44 7/27/2018 8.28 8.38 3.44 7/30/2018 8.48 8.44 3.49 7/31/2018 8.76 8.67 3.54 HIGH 8.76 3.54 LOW 7.76 3.22 AVG 8.13 3.35

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Š Linn Co-op Oil Company 2018 2014

General Manager Bill Mysak Asst. General Manager/Operations Ron Woeste Energy Manager Tim Roehlk Car Care Center Manager Daryl Sackett Springville Branch Manager Tracy Peyton Newhall Branch Manager Matt Becker Alburnett Branch Manager Kirk Sauer Credit Manager Mike Arnold Lawn Care Manager Brad Salazar Human Resource Manager Danielle Manternach

Linn Cooperative Phone Numbers

Marion Main Line In-coming WATS Newhall Office Springville Office Alburnett Office Direct Grain Line Car Care Center Lawn Care Department

319-377-4881 800-728-4881 319-223-5191 319-854-6192 319-842-2222 319-854-6120 319-377-7351 319-447-1225

A CornerPost Marketing Communications Publication www.cpostmarketing.com

JULY Soybeans

Dale Lefebure, Fairfax Joe Meythaler, Marion John N. Airy, Central City Neal Horning, Marion Don Martin, Norway Jon Studt, Springville AJ Lewis, Center Point Dennis Coppess, Mechanicsville Daryl Gericke, Winthrop

Linn Cooperative Management Staff

JUNE Soybeans

Linn Cooperative Board of Directors

President Vice-President Sec/Treasurer Vice-Secretary Director Director Director Director Director

OCT-17

3.40 3.42 3.43 3.51 3.45 3.39 3.31 3.37 3.33 3.33 8.13 3.39 3.43 3.47 3.45 3.40 3.54 3.50 3.50 3.55 3.61


I think it is safe to say that in the Linn Co-op trade area, we have had a very blessed year. After a very long winter and busy spring, we were fortunate to receive timely rains between great amounts of sunshine. It is unbelievable how fast the year has gone by as we make our way to harvest. We had many new customers this year and want to welcome those as new patrons of Linn Co-op and thank you for your business. To all our patrons, from us at Linn Co-op, thank you for your business. Dividend checks were mailed September 13 and 14. Please note that we as a cooperative did take the Section 199 deduction due to the time we had at the end of December 2018. Instead, your board of directors voted on giving 100% of your 2017 patronage refund as cash to make up the difference.

A conversation with the General Manager

As fall joins us, I remind you to take advantage of the discounts we have on oil and grease. The home heat and dryer gas contacts are now closed. We had a large percentage of patrons who took advantage of those prices which was wonderful. Delivery on our home heat contracts started on September 10 and will end on March 29. Fall diesel contracts began being delivered on September 4 due to Labor Day being on the 3rd of the month. Those contracts will run through December 14. To everyone that will be around equipment this fall, be careful and always remember- safety first. Here’s to a happy harvest. Bill Mysak General Manager Linn Cooperative Oil Company

Fact about Co-op Month: Co-op Month has been a nationally recognized celebration since 1964, when U.S. Secretary of Agriculture Orville Freeman, a former Minnesota governor, proclaimed October Co-op Month.

www.linncoop.com

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Kirk Sauer - Alburnett Branch Manager

The merging of Dow Agrisciences and Dupont is complete. Now, the new company name is DowDupont. Corteva is the agricultural division of DowDupont, and the flagship brand of Corteva will remain Pioneer. Here at Linn Co-op, we are thrilled to continue our relationship with Pioneer. We know the mergers happening within our agricultural industry can be rather overwhelming and leave producers concerned. The merger of DowDupont is anticipated to bring forth great new things. These two companies thrived individually. We have no doubt that they will make tremendous advancements together in the years to come. Operating in today’s agricultural economy is presenting to be a tough task. Input costs are relentlessly volatile, along with corn and soybean prices suffering from recent year lows. The Linn Co-op seed team understands the laborious times we are enduring. Rest assured we are here to assist you with putting together a portfolio of corn hybrids and soybean varieties custom to your needs. We stand by our “right product, right acre” beliefs and experience.

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© Linn Co-op Oil Company 2018 2014

ETT

ALBURN

With that being said, I am pleased to announce the programs and pricing for 2019 have been released by Pioneer. The programs are similar to those of 2018 with some newly added benefits. Those include chemistry enhancements to seed products that increase the value in planting Pioneer brand products and utilizing Corteva brand chemistry. In the coming months, your Linn Co-op Pioneer Seed Representatives will be contacting you with additional information. They will have the 2019 programs available to discuss and ensure that you maximize the discounts available. At Linn Co-op, we are delighted to continue offering our growers the top quality genetics and technologies in the industry through our strong partnership with Pioneer. We look forward to serving you in the growing season of 2019.


New. Simple. Now.

Introducing Corteva™ Cash and TruChoice® Prepay Savings Why wait for a rebate? Now there is a better way to buy seed and crop protection products while increasing your buying power. TruChoice® offers provide two NEW, SIMPLE and UPFRONT ways to save.

1.

CORTEVA™ CASH

Customers who purchase Pioneer® brand seed by March 29, 2019, will be eligible for Corteva™ Cash to purchase Corteva Agriscience™, Agriculture Division of DowDuPont, crop protection products equal to 2% of the total value of Pioneer seed products invoiced. • INVOICE Pioneer brand seed with your local Pioneer sales professional by March 29, 2019. • EARN your discount by paying your Pioneer invoice amount. • REDEEM your Corteva Cash on approved Dow AgroSciences and DuPont crop protection products through TruChoiceOnline.com at participating retailers between December 15, 2018, and September 30, 2019.

2.

TRUCHOICE® PREPAY

+ Customers who fund a TruChoice SEED SAVINGS

Prepay account by March 29, 2019, through a Pioneer sales professional or participating retailer are eligible for Pioneer brand seed savings (see chart below). After funding your account, earn your corresponding seed savings by invoicing seed with a Pioneer sales professional prior to March 29, 2019, and redeeming your prepay funds for approved Corteva Agriscience crop protection products by September 30, 2019. CROP PROTECTION PREPAY AMOUNT

> $50,000 Prepay > $25,000 Prepay > $7,500 Prepay

PIONEER BRAND SEED SAVINGS

CROP PROTECTION SAVINGS Customers who fund a TruChoice Prepay account by March 29, 2019, through a Pioneer sales professional or participating retailer are also eligible for crop protection savings of 5% for cash or 3% when financing. After funding your account, take advantage of your crop protection savings by ordering crop protection products with your local crop protection retailer by September 30, 2019. PREPAY CASH

5%

Savings

TRUCHOICE® FINANCING

3%

Savings

3%

Seed Savings

2%

Seed Savings

1%

Seed Savings

www.linncoop.com

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E

R LAWN CA

Brad Salazar - Lawn Care Manager

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As we move into fall, we are also approaching the best time of year to seed lawns. Seeding in the fall provides optimum germination. It is best to seed by mid-October. Fall seeding also provides the option to apply crabgrass prevention in the spring which benefits your lawn even further.

hours. We have seen first-hand the devastating damage that can be done. I highly recommend applying a grub prevention next year to avoid any damage to your lawn. Applying a prevention in the month of June is going to be less costly than needing to apply a corrective insecticide in the fall.

In the July Pipeline, I mentioned grub activity was expected to be high. Contrary to the norm, Japanese beetles stuck around for eight weeks rather than the typical three to four. Due to this, grubs will be found in even higher numbers. To check for grubs, look for areas of grass that are able to be lifted right off the ground. It is when the grubs have eaten the grass roots provoking detachment. If you do find areas affected by grubs where the grass section can be lifted, we offer insecticide to rid those active grubs. In addition, these critters are hunted by skunks, raccoons and moles. These favored little snacks can be the explanation to your lawn being turned upside down in a matter of

Lastly, I want to emphasize the importance of winterizing your lawn for optimal spring growth, along with saving time and money. Even in the winter, your lawn needs oxygen. To ensure your lawn is obtaining proper oxygen through winter, remove any debris or leaves that may be laying on your lawn.

Š Linn Co-op Oil Company 2018 2014

We would be glad to help with full-service options or product recommendations for do-it-yourself lawn care. Feel free to stop in with any questions you may have. Providing your lawn the protection and health it needs is a speciality of Linn Co-op Lawn Care.


CAR

CAR

E

Daryl Sackett - Car Care Center Manager

There have been several improvement projects around Linn Co-op this year. One of the major projects that have been tackled is updating the Car Care Center in Marion. It now has a look that matches the main warehouse in Marion next door. We have had a great crew that has done an outstanding job on this update. The next time you are in the area, I encourage you to come to check it out. We want to provide our community and most importantly you, our patrons, the absolute best services and technology for your vehicles and equipment. I think you will be impressed with the results of this project.

fields. Before the winter sneaks up on us, now is the time to have your vehicles prepared for the cold weather ahead. Call Andy at 319-377-7351 to schedule any service or repair needs before the winter season hits. With fall harvest underway, tire needs on the farm are important to keep operations moving. We have rebates available from Firestone, Mitas and Michelin. Call Daryl for details on these tire specials at 319-377-7351. To schedule on-farm repairs or replacements, call Keegan at 319-550-(TIRE) 8473. He will be happy to keep you rolling day or night. Have a safe harvest!

The fall season joins us once again, and that means kids are back in school and farmers are back in the

$74.95 • Inspect and align to manufacturer’s specifications (shims and cam kits extra) • Transmission flush and filter $209.95 cars $239.95 light trucks • Completely flush transmission fluid, torque converter, cooler and transmission • Install new transmission filter • Special fluids extra

$32.95

Synthetic Blend

$44.95

Full Synthetic

• Up to 5 quarts of quality Cenex Oil • New oil filter installation • All fluid levels and tire pressure checked • Chassis parts lubricated • All belts and hoses, battery and charging system checked • All lights, exhaust and suspension parts checked

www.linncoop.com

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NEWHALL Matt Becker - Branch Manager

Here at Linn Co-op, we want you to receive the best value for every dollar that you invest in crop nutrients. We have heavily invested in technology and people to ensure you receive the highest return for your fertilizer investment. I encourage you to work with our agronomy team to help you utilize the products and tools we have available to make efficient use of the nutrients we apply. If you haven’t done so already, it is increasingly important to update your field grid samples. These soil samples will give you some of the most positive returns in regards to input costs. The information within the data of these samples allows you to detect specific nutrient or health issues and apply inputs strategically and cost-effectively. Keeping up-todate samples provides you with a more accurate representation of what your field’s current needs are. Once you have determined the crop nutrient needs, we recommend utilizing nutrient use efficiency products such as nitrogen stabilizers. This helps to make sure the fertilizer stays where you apply it and will be available to the crop when it is needed.

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Š Linn Co-op Oil Company 2018 2014

While arranging your fall fertilizer needs, we want to remind you to highly consider a split application method of nitrogen next spring. Split application is the most beneficial nitrogen sourcing method for your plants, and it also secures the optimal amount of nutrients. If you are utilizing any cover crops this growing season, or growing alfalfa that will need to be burnt down, begin creating a plan so that those are taken care of in the most efficient and beneficial way possible for your field operations. Give Kirk Sauer, Doug Rice or Dave Manternach a call if you have a cover crop or fall season questions. Whether field soil samples, fertilizer applications, efficient use products or new practices such as cover crops, the agronomy team at Linn Co-op is focused on helping each producer make the investments that are the best return for their operation.


ENERGY

Tim Roehlk - Energy Department Manager

Across the board, markets have been relatively calm. Recently, crude oil has slipped under $70.00 per barrel and is currently trading in the $67.00 to $69.00 per barrel range. With a couple of exceptions, it has remained in the $65.00 to $70.00 per barrel range since early spring. This price is approximately $20.00 higher than a year ago. Expect prices to continue to remain steady unless additional geopolitical issues arise. Deliveries of Fall Diesel Contracts as well as LP Grain Dryer and Home Heat Contracts will begin in September. Thank you to all of those who took advantage of the opportunity to lock in their price.

Supply at the end of August has not been an issue, but that can change if we experience several weeks without rain during fieldwork. Propane prices have been gradually climbing since the beginning of August. Consequently, LP inventories are under the five-year average. Exports to other countries have been the main reason for this. With this year’s crop ahead of normal, it will be interesting to see if dryer gas usage remains as high as other years. This will have an impact on LP pricing heading into the heating season. We will keep monitoring this usage and pricing closely for you.

In the diesel price market, we typically see a spike up as fall harvesting begins. The best recommendation is to have your tanks topped off heading into late summer.

Pre-Season Sale Discounts Effective August 20, 2018 through September 28, 2018 MOTOR OILS AND GREASE: $0.65 per gallon ($35.75) on 55 gallon drums $0.55 per gallon ($16.50) on 30 gallon drums $0.40 per gallon ($2.00) on cases of 2x2.5 $0.40 per gallon ($2.40) on 6x1 gallon $1.00 per case on 12x1 quarts DISCOUNTS ON GREASE: 120 lb. drum ... $12.00 35 lb. pail ... $4.00 10 pack tubes ... $1.50

www.linncoop.com

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Linn Co-op Harvest Policies 2018 All grains placed in the facility from September 1, 2018 to December 31, 2018 must be declared stored within 3 days of delivery unless prior arrangements have been made.

sold or

Soybean Storage = Minimum storage is 18 cents/bushel for first 120 days or fraction thereof 1/75 cent/bushel/day thereafter 4 cents per month Warehouse Receipt Corn = Minimum storage is 16 cents/bushel for first 120 days or fraction thereof 1/8 cent/bushel/day thereafter 3.75 cents per month Corn Moisture Requirements Corn for storage warehouse receipt dried to 14.0% Drying Rates (Storage) Corn = 5 cents for each 1 % moisture to 22.0% moisture (Over 22% moisture = 5 cents for each ½% moisture) Soybeans = 5 cents for each 1% moisture over 13.0 % Soybeans over 15% subject to additional charges or rejection Corn Shrink 1.18 % per point moisture removed 0.17% handling shrink per point moisture Total corn shrink = 1.35% per point of moisture removed Soybean Shrink 1.18% per point moisture removed 0.82% handling shrink per point moisture Total soybean shrink = 2.0% per point of moisture removed Moisture Dock (Sales Across Scale) Corn = the higher of 2.5cents or 1% of purchase price per 1/2 % starting @ 15.1% Soybeans = 1 1/2 % of purchase price per 1/2 % starting @ 13.1% – 15.0% Over 15.0% - subject to rejection Aflatoxin Policy Corn maybe subject to Aflatoxin testing and all discounts set forth by our processors, including REJECTION, shall apply. Damage/Test Weight/Mold/Insects/ and other Discounts (Discount rates in use by grain trade on date of disposition will apply)

Policies subject to change without notice (Change will be posted in Offices)

Linn Cooperative – SPRINGVILLE & ALBURNETT

PENALTY OF 5 CENTS A BUSHEL WILL BE ASSESSED ON ALL UNUSED STORAGE COMMITMENTS

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© Linn Co-op Oil Company 2018 2014


IN

GRA

It’s easy to get caught up in the hustle of harvest as things get going in full swing. We want all of our patrons to be safe and have the successful harvest that is waiting for you out in your fields, but we all have to remember that safety needs to be a priority. When harvest gets going keep the following in mind: Jessica Putz - Agronomy Sales & Grain Merchandiser

Operate with care and attention - don’t work when over exhausted When working on equipment, be sure those around know and are aware of where you are at all times Avoid driving machinery at dawn and dusk these are the most common times for accidents Guard/shield all moving parts on machinery, and keeping bystanders and children away entanglement is a leading cause of injuries and deaths on farms Ensure that equipment lights work and are properly signed for driving on the road

Talks on trade and tariffs continue to affect an already supressed grain market. China visited in August to negotiate tariffs, but an agreement that President Trump is willing to accept has not been met. The discussions on trading with Canada and Mexico are still on the table. In an attempt to reach an agreement with the United States, Canadian trade officials came to Washington to discuss updating and modernizing the North American Free Trade Agreement (NAFTA). President Trump has stated, after signing a trade deal with Mexico, that he will proceed to sign it into law after 90 days whether Canada is a part of it or not. The most recent USDA Crop Progress Report for the state of Iowa says that the crops are averaging good to excellent conditions for both corn and soybeans. A strong 95 percent of corn has reached the dough stage or higher. This is slightly more than a week ahead of last year as well as the five-year average. Soybeans are also holding out strong, with nearly one-third of the leaves beginning to color and four percent dropping leaves. The end of August and beginning of the month left our Linn Co-op trade area and most of the state rather wet, putting a halt on any immediate plans or abilities to begin harvest. It looks like we will have a robust harvest when everything is dried out. We are looking forward to the busy season to come.

www.linncoop.com

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P.O. Box 406 Marion, IA 52302 Return Service Requested

HOLD YOUR GROUND AVAIL® Phosphorus Fertilizer Enhancer increases the efficiency of your phosphorus fertilizer no matter how - or when - you apply it. This results in the maximum use of your fertilizer investment in the spring. Help keep 45% or more of your applied phosphorus available to your crops with AVAIL. Contact your local Linn Co-op location today to add AVAIL to your fertility program.

Important: Always read and follow label use directions. AVAIL is a registered trademark of Verdesian Life Sciences. © 2018 Verdesian Life Sciences. All rights reserved. VLS 18.0372

0372 Linn Coop Pipeline Print Ad.indd 2

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© Linn Co-op Oil Company 2018

8/3/18 12:01 PM

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