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Your cooperative just completed its fiscal year, and the auditors have completed their duties of confirming what our accurate accounting department had already knew, and that is we finished with our second best year locally on the books. This year will mark the 95th annual meeting of your cooperative. Notices have already gone out with a copy of last year’s annual meeting notes. The meeting is set for Tuesday May 18th at the Knights of Columbus in Dodge City starting with registration from 5:30 to 6:30 pm. Dinner will start at 6:30 followed then by meeting. I hope you will have an opportunity to attend. We continue to pay out a large percentage in cash while also paying out deferred equity that you have

accumulated over the years that was earned by just doing business with your cooperative. The payout on patronage and deferred equity is at the highest level we can pass back and still stay within the guidelines set by financial lender. We will miss the members that we have lost over the past year, but the gratification comes when we were able to disburse over $200,000 in estate payouts. Thanks to the board in allowing us to pay out members 82 years and older that have no farming interest any more. A lot of those members are on fixed income and the additional $100,000 disbursed was welcomed. Yearly election of the board will take place again at

EXCHANGE NEWSLETTER SECOND QUARTER 2010 the annual meeting. This year Jeff Bogner has decided to step down from the board. Jeff started as an associated board member in 1999, a director in 2000 and has been on the board ever since that point. I would like to thank Jeff for his years of service and dedication during his time on the board and to the cooperative system. With the late fall harvest and the weather, we moved less than 10% of our normal fall movement of anhydrous. The other problem was we were not alone which caused the entire Midwest to be moving product at the same time. Both irrigation acres and dryland acres were being applied at the same time. Thanks for your patience as

Inside This Issue 2 Safety 3 Ace Hardware - Grain 4 Grain Division 5 Feed Division 6 Agronomy - AV Energy 7 Seed Division

product was being brought in by several sources to meet your needs. The additional NH3 tanks that we purchased last year were very helpful during the spring application. I appreciate the work that the employees did to keep tanks filled and moving tanks during deliveries and between the storms. We are about a month away from wheat harvest and it will be here before you know it. The employees have been working hard making room for what looks like a better than average wheat harvest if we can pick up another shower or two while staying away from any hail. Storage for wheat harvest will not be a problem, and if the weather continues like it has been, fall harvest could be interesting. I hope you have a great summer and thank you for your business. It is always appreciated! See you at the 95th Annual Meeting! Jerald Kemmerer CEO/GM ------------

Safety Division

If someone asked you what the leading cause of death in grain elevators is you might answer grain dust

explosions or falls from heights. Would you be surprised to learn that the leading cause of deaths in grain elevators is engulfment in grain? Just as grain can be dangerous in large commercial grain elevators, it can also be dangerous in bins on the farm. Even small grain bins have hazards that need to be addressed. With the summer and fall harvest seasons approaching, many farmers will be emptying their grain bins and preparing them for filling. Following are some dos and don’ts in regard to grain bin safety. Never enter a grain bin that is being loaded or unloaded. It is important to understand that flowing grain can entrap you in seconds. Once you are in grain up to your waist, you cannot get out on your own. Make sure that the grain cannot engulf you higher than waist high. If the grain has the potential to cover you higher than that you must wear a harness and lifeline. If you must enter a bin, make sure that all means of loading and unloading are locked out and tagged out. Never enter a bin without having at least one person outside the bin watching the person inside the bin. The person outside the bin must never leave the person inside the bin unattended. This means being at the door and watching the person inside the bin at all times. The person outside the bin must understand what to do in the case of an emergency. A means of obtaining additional

help must be established. Under no circumstances will the person outside the bin be allowed to go into the bin, including going into the bin to assist or rescue the person inside the bin. Many times the person going into the bin to rescue another has become an engulfment victim himself. Out of condition grain is often a contributing factor in grain bin accidents. Bridged or hung up grain is extremely dangerous. Never stand on top of bridged grain, as it can give way and engulf you. Never attempt to break up hung up grain, as when it does give way it may engulf you. If you encounter bridged or hung up grain in a bin leave the bin immediately. You should break it up to get it to flow by using long poles while you are outside the bin. There are other grain bin hazards besides engulfment. Dusts and molds can be dangerous to breathe, so always wear a dust mask in a grain bin, especially around out of condition grain. Make certain that the air inside the bin is fit to breathe. If the grain has been fumigated in the past, make sure there is no fumigant gas left. The aluminum phosphide fumigant label states that a gas mask must be worn in atmospheres of .3 parts per million or more of phosphine. If the grain is out of condition make sure that carbon dioxide has not displaced the oxygen in the bin. It is acceptable to run the aeration 2

fans to bring a supply of fresh air inside the bin. Remember that a dust mask will filter out particulate matter only. If there are fumigants or oxygen deficiencies present, a dust mask alone will do you no good. Another hazard around grain bins is machinery. Make sure that all guards are in place, including the guards over the auger. Some augers, especially older ones, have guards that will not prevent hands or feet from getting caught in them. If you do not have a guard over the end of an auger, or if the guard in place would still allow a hand or foot to get caught in it, you may want to consider putting a different guard over the end of the auger. Some of the larger grain handling facilities on farms may also have boot pits and dump pits. Engulfment hazards exist in dump pits, so practice the same safety guidelines you would use in a bin, such as lock out/ tag out and eliminating all means of filling and emptying. Boot pits can have a lack of oxygen, especially if there is rotten grain in the bottom of the boot pit. If there is rotten grain in the bottom of a boot pit, you will want to perform some type of forced air ventilation. As with grain bins, always have at least one person outside the boot pit or dump pit when entering either of these two areas. If you have any questions about grain bin safety, please feel free to contact me at the

Dodge City Coop Main Office. Skyler Hayes Safety Director


Ace is your place for E-Z roll wire roller and unroller. Tests have shown that E-Z can roll up to ½ mile of barbed wire in one stretch. Modern farming techniques have created the need for temporary fences. E-Z roller makes wire rolling and unrolling easy. E-Z roller is virtually maintenance free and is guaranteed against defective material and workmanship for one year. Ace is also your place for fence chargers. 110 volt, 6 volt, 12 volt, and solar chargers are available. Brands include Gallagher, Speedrite, Parmack and Zareba to name a few. Stop in and checkout our line for all you’re fencing needs. Jack Lane, Ace Manager ------------


It’s amazing how fast time can slip from our hands. It feels like just yesterday we were trying to find space for corn and milo. Now wheat harvest is just a hop, skip and a jump away. Is it because harvest was one of the longest fall harvests in recent years? Regardless, we have to look at the facts ahead of us to prepare for the obstacles to overcome. Your Dodge City Cooperative is working vigorously to make room for what appears at this moment, to be a very good looking wheat harvest. I say “at this moment” because we all know how fast a wheat crop can change. It can change as fast as the cash wheat price going from $5 down to $4. Space is king at the given moment; some people estimate that this last year Kansas faced a 270 million bushels space deficit. Sit back and think about that, that’s about 635 shuttles of grain. Let me show it to you this way. That would be over 71,000 rail cars that we could have filled with all the grain that was not able to fit into some kind of storage. As many of you know Dodge City Cooperative has added a lot of storage to help with the larger yields we have seen. It 3

could not have come at a better time! With the year round dedicated work of your Dodge City Cooperative employees we will have space for this wonderful wheat crop. Then back to work to make room for hopefully a big fall crop. So let’s tackle the big questions. Why did wheat drop so fast, why are the basis so cheap, and what’s driving this market? Let’s start with the basis, three years ago we saw wheat basis around -45. Meaning the cash price was $.45 less than the July Futures on the KC Board of Trade. Today we are currently -$1.00 for New Crop wheat here at Dodge City. Look back one paragraph and that will explain a lot of what’s going on. After a big wheat harvest last year, of ordinary wheat, the mills in Wichita and Kansas City have had no problem finding wheat. Export sales to other countries have been extremely low as well due to higher commodity prices in the US. That forced storage facilities to hold wheat longer than they would want too. Then they had to move it to make room for the next crop. Anytime you force grain onto the market when it does not need it, you will push the basis (cash price) lower and lower. The high prices for wheat has given us record wheat carry out numbers here in the USA. The last USDA report they estimated that the USA had wheat ending stocks of about 950 million

bushels. That’s why we can expect to see cheap basis in our area until this number comes down and tightens the supply/demand outlook. So what’s driving this market? Well I just answered part of that in the last paragraph with huge ending stocks of wheat. The US Dollar rallying has also been a player in the futures markets. As the US dollar rallies it makes it more expensive for other counties to buy our grain or any other product for that matter. If you think the commodity prices are hard to predict try looking into the US Dollar. Many of us have heard the news, yes wheat acres are down. But when we carry 950 million bushels of wheat around I would say that we can afford to lose some wheat acres. There have been some reports of some disease starting to show up in the wheat crop in Kansas. That will be closely monitored by traders as we move forward. However USDA still says that 70% of Kansas wheat is in Good to excellent shape. As a nation 68% of our wheat is in Good to Excellent shape. So overall those are the brief fundamentals on wheat. Let’s quickly turn our attention to the Corn. I will use the phrase “they came, they saw, they conquered”. That’s what the corn planters did in SW Kansas. On May the 2nd USDA estimated Kansas was only 50% complete on planting corn. Talking with many of you I would say our area is much

farther along that 50 %. As a nation they reported we are 68% planted that was only 2% away from tying the old record. I wouldn’t say perfect weather, but the next best thing is what the Corn Belt has had over the past month. That has put some pressure on the corn market. At the end of April we did see China buy corn from the USA. That was demand that most of the corn traders were not expecting. We will wait and see if any grain gets loaded on a boat or not. It might just be a test of the system to see if US corn will meet the specifications China requires for importing corn. China purchased 5X’s this amount of corn in November of 2001 and that sale resulted in zero shipments. The corn shipment is supposed to happen in late May. Wait another 2-3 weeks after that to see if any corn is actually unloaded. That is the kind of news we will need to keep seeing if we want to turn this market and get futures prices back over $4. Back to the old broken record of news. The weather will play a big role in sizing this crop, as well as manipulating prices. Volatility will be here this summer, with grain markets feeling heavy get with your broker or consultant and find away to protect your downside risk. Troy Presley Grain Originator Risk Management Advisor



Will Cows Get Pregnant In The Coming Breeding Season? The winter of 2010 has broken a number of records. Beef cows on most farms have probably been affected to a significant degree by the winter. The cold and snow cover that we experienced have altered cow diets for the worse while unusually cold temperatures and wind chills have markedly increased nutrient requirements. A review of what research and experience has taught us about reproductive performance helps us predict and hopefully take steps to remedy the effects of this situation on the upcoming breeding season. Otherwise open cows and later calves may have a profound effect on future profits. The number of cows that get pregnant during a calving season is a function of three major factors: 1. The number of cows that are cycling (coming into heat) at any point in the breeding season. 2. The fertility of the cows, that is, the likelihood that they get pregnant each time they come into heat. 3. The fertility of the male,

whether in the form of a bull breeding or an artificial insemination. Years of research have helped to show the major factors that influence each of these main items. Here are the generally agreed on contributors: Estrous cycling: * Days since calving * Body condition score at calving * The nursing of the calf * Exposure to a bull * Age of the cow * The influence of hormones Cow conception rates: * Days since calving * Whether cows are gaining or losing weight * Heat stress Bull fertility: * Normal sperm cells * Scrotal circumference * Libido * Body condition * Age and dominance So what’s different this season than most years? Cows lost more weight in the winter and therefore calving at lower body condition scores than usual. That means that they will tend to be slower to cycle than usual. If the average cow begins cycling twenty-one days later that results in about 15% more open cows in a 65-day breeding season. A wise producer can use the other knowledge we have of the factors that determine outcomes of beef reproduction to overcome this drawback. Here are some procedures that can be done to increase the odds that cows will become pregnant efficiently.

1. Do everything possible to get cows in a gaining situation as early in the spring as possible. 2. Don’t stop feeding cows until there is plenty of grass to meet nutritional needs. 3. Take extra care of young and old cows. 4. Consider the use of teaser bulls with cows before actual breeding begins. Bull exposure has been shown to start cows cycling as much as thirty days earlier. 5. Removing calves from cows for 48 hours at the beginning of the calving season or as part of a synchronization program has been documented to increase the number of their dams that begin cycling. 6. If you are doing synchronization for artificial insemination, consider using a system that adds progesterone in the program as progesterone treatment has been shown to increase the number of cows that are cycling. 7. Perform Bull Breeding Soundness examinations on all bulls before the breeding season. Then watch bulls carefully during the season to be sure they are performing well. Having a successful breeding season this year will require that typical management be improved in many operations. Utilizing some of the above special techniques, even if they are not necessary in most breeding situations, may pay real dividends this season. Source: Dr. W. Dee Whittier, Extension Veterinarian, 5

College of Veterinary Medicine, VA Tech Galen Frick, Livestock Advisor -----------


Post Emergence Weed Control There is a lot to consider when planning post emerge herbicide applications. The first is timing. Timing is crucial because the application needs to be made before the weeds get too tall and competitive. Corn will hit the critical growth phase 25 to 40 days after planting. This is when the weed competition can hurt yields the most. Post emerge applications should be made before the weeds get 2 to 4 inches tall. This is the height that not only does the weed competition begin to affect yields, but they are easier to control at this size. Weed density also affects the timing of the application. The more dense the weeds, the sooner the application needs to happen in order to protect yield potential. Corn, as well as most other crops, is more tolerant to herbicides when it is small. Most selective herbicides can be metabolized by the crop when it is small. The larger

the crop gets, the more leaf surface there is to absorb the herbicide. More leaf surface collects more herbicide and the plant can’t always metabolize the larger amount which then results in crop damage. The three basic weed management principles are: protect yield potential, minimize the development of weed species shifts, and minimize the development of weed resistance. Using herbicides that have different modes of action can help in this. Herbicide programs should be based on the weeds in a specific field and not a one size fits all program. Please call one of our Sales Agronomists or Location Managers to help you design a weed control program for your farm. Mike Fraser Agronomy Division Manager ----------

AV Energy What would spring be without the Kansas wind and little rain? As our farmers and ranchers are hard at work I would like to take some time and introduce you to a few new products we have available to help you save time and money. Cenex has come out with a new synthetic 5W40 oil called Enviro-EDGE. This product was designed with the over the road trucks in mind. Enviro-EDGE can extend your drain intervals which in turn will save you time and

money. AV Energy also offers a synthetic 15W40 called Maxtron. Maxtron 15W40 is designed for more of the industrial equipment; tractors, hay equipment, harvest equipment and irrigation motors. Please give one of our salesmen a call and they can further explain the advantages you could have when you switch to one of our fine synthetic oils. I would like to introduce you to the newest member of AV Energy, Terry Summers. Terry has joined our sales team and is well versed in all of AV Energy’s products. Terry comes to us from Wichita where he was involved with sales for a dry wall company. Prior to moving to Wichita, Terry managed Wilson Trailer’s here in Dodge for several years. Terry started with us the end of March and has been very active in and around our service area. Terry will be working mostly east and south of Dodge City, so if you are in that area I’m sure you will see him soon. One of my main goals when taking over AV Energy as the General Manager was to better the communication between AV Energy and our customers. Please contact Cal, Terry or myself with any questions, comments or concerns you might have, you can find our phone #’s on the DC Coop web site or call our office @ 620-225-4994. Have a great summer and harvest and please be safe! Chris Klein 6

General Manager AV Energy ---------------


Location, Location, Location, this seems to be key to the crop conditions this spring. Moisture is extremely variable across our trade area therefore the wheat conditions are also. The hot winds have dried out the top of the profile in many areas. Our seed production wheat is holding on pretty well and we should have good supply for this fall. Protection will be available this fall that is a Clearfield variety offering another option for cheat and downy brome problem fields. Along with this, we have Armour, Endurance and Tam 112 in our lineup. As corn and soybeans are going in the ground, don’t forget about our selection of Garst, Sorghum Partners and Triumph grain sorghums. We have a good mix of varieties from early to full season to fit all of your needs. With the amount of acres that didn’t get planted to wheat last year our selection of grain and forage sorghum products offers many options to diversify your cropping system.

Wheat harvest is quickly approaching and double cropping decisions will be here before you know it. Our seed division has options from short season sorghum to sunflowers from Croplan and Triumph that will suit your needs. Try not to miss an opportunity to maximize the production on your farm when Mother Nature allows. Once again Land O Lakes and Croplan have their Answer Plot west of Dodge to assist our producers and offer them a tool in production agriculture. The plot has many varieties side by side along with parent genetics to allow you to compare the genetic packages. Also in the plot are population studies, herbicide trials, and some forage plots. The Answer Plot is designed to be “Hands On”. There is an area of the plot that allows for producers, consultants and fieldmen to dig roots, pull ears and get their hands on the varieties in the trials. We would like to invite everyone to take a look and use the plot as a helping hand. We will have plot tours later in the season, so watch for times and dates, we look forward to seeing you there. DC seeds have a diversified line up to help you with your farming operation. Please let us know how we can serve your needs this season. As the year progresses, remember to stay safe.


Wheat Corn Milo Soybean




3.25 9.51




2.59 7.98




2.98 8.62




2.72 8.52


3.30 10.62

Last Year –May 2009 AVG.


BOARD OF DIRECTORS Scott Mac Nair ........................ Chairman Tony Bleumer... .............. Vice-Chairman Larry D Scott .......... Secretary-Treasurer Steve Riegel .............................. Director Jeff Bogner ................................ Director Jeremy Derstein ........................ Director Clint Hamilton ............................ Director Butch Irsik……..….....Associate Director Kyle Feikert………….Associate Director Jerald Kemmerer………………CEO/GM Debby Kennedy….......Newsletter Editor

Jim Halling Sales Agronomist 7

Dodge City Cooperative Exchange 2nd Quarter 2010 Published quarterly by the Dodge City Cooperative Exchange 710 West Trail, Dodge City, KS 67801 (620) 225-4193



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