Agriculture January 23, 2011
Good advice
Produced by the Grand Forks Herald’s Features team
By Ann Bailey
Herald Staff Writer
About two decades ago, Bob Lebacken figured there was a better way to market his crops than simply selling them off the combine, so he decided to explore other marketing options. The more Lebacken learned about marketing tools, the more interesting he found it and he decided to get a Series 3 commodity trader’s license. He worked for Benson Quinn for about a dozen years until it merged with ADM Investor Services, and then, in 2002 founded RML Trading LLC. Lebacken, an introducing broker, clears trades with ADM Investor Services. Now Lebacken together with RML Trading LLC account executives Terry Fitchner and Brad Lucke help farmers and ranchers market their crops or livestock. “We give farmers advice and opinions on the markets, help farmers look at markets,” Lebacken said. He and his staff strive to give farmers both short- and long-term market perspectives and which marketing tools may be advantageous to use. “With the volatility in the markets we are finding some of the strategies can be more advantageous than cash contracts at the elevator or just selling
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Industry 2011 Section
off of the combine.” RML Trading LLC provides farmers and ranchers who aren’t familiar with marketing techniques information. “We want to make sure they understand if they’re new to it.” Understanding the markets is important because producers still make the ultimate decision about how to market their grain, he noted.
Progress
Bob Lebacken and staff strive to give farmers both short- and longterm market perspectives ■
Clients
Most of RML Trading LLC’s clients live in North Dakota and Minnesota, but some also are in other areas of the United States. “Business has been gradually growing,” Lebacken said. Besides doing daily market updates on the radio, RML Trading LLC also holds an annual market outlook seminar, which features national speakers, he said. Most of today’s agricultural producers view marketing as an integral part of their farming operation, Lebacken said. Volatile markets and a global economy have increased the need to do more sophisticated marketing than years ago when farmers chose to either store the grain or sell it off the combine. “There is more of a need and desire to do more…. I remember 10 years ago, when the wheat markets would move 50
Eric Hylden, staff photographer
Bob Lebacken is the president of RML Trading LLC in Grand Forks. cents a year. Now we get that in a day.” RML Trading LLC has a staff member on call so farmers can get in touch with them after the U.S. markets close at the end of
the day, Lebacken said. “With virtually around-theclock trading, the phone is forwarded to one of us,” he said. “We get calls at night and we put in orders.”
Given the variability in the market, being a broker is challenging. “It can be awfully frustrating some days. It can be awfully fun some days.”
Vance Taylor is president and general manager of the North Dakota Mill.
Flour power Photo by Ann Bailey
The North Dakota Mill reported record profits of $13.18 million in fiscal year 2010 ■
By Ann Bailey
Herald Staff Writer
The North Dakota Mill is looking forward to another good year. “We had another good quarter for the first quarter of fiscal year 2011,” said Vance Taylor, North Dakota Mill president and general manager. Profits for the first quarter of fiscal year, 2011 were $2.75 million, he said. “Market conditions are good for the state mill,” Taylor said. The North Dakota Mill reported record profits of $13.18 million in fiscal year 2010. That amount is more than double the previous record of $6.2 million that the mill posted in 2006. About 90 percent of the mill’s business is sales of wheat flour and 10 percent is pasta sales. One of the main reasons that the mill’s profits increased in fiscal year 2010 was a 13.2 percent increase in flour shipments, Taylor said. The mill shipped 10.8 million hundredweight of flour during fiscal year 2010. Flour shipments so far this fiscal year are 10 percent above last year’s shipments for the same period, Taylor said. “We’ve seen a good, solid demand for our spring wheat and durum products.”
Growth
The increase in flour shipments is the result of North Dakota Mill plant expansions during the past decade, which have increased plant capacity, Taylor said. The total capacity of the mill’s seven units is 3.5 million pounds of flour per day. The mill’s flours, which include white, whole wheat and white wheat, are shipped to bakeries and bakery distributers across the United States, but the bulk of the customers are on the East Coast, Taylor said. The mill’s biggest market is in New York City. The mill also sells 5- 10- and 25pound bags of flour, bread machine mixes, two kinds of pancake mixes, 5-pound bags of white whole wheat flour and 5-pound bags of organic spring wheat flour in area grocery stores, The markets for organic flour and white wheat are growing, Taylor said. The mill buys its white wheat flour from farmers via the Dakota Pride Co-op. “We’ve been growing that program for five, six years,” he said. Reach Bailey at (701) 787-6753; (800) 477-6572, ext. 753; or send email to abailey@gfherald.com.
‘Record year’
Photo by Ann Bailey
Agvise President Bob Deutsch (left) and Agvise Vice President John Lee at Agvise Laboratories in Northwood, N.D.
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High cost of fertilizer, precision technology create demand for Agvise’s services
By Ann Bailey
Herald Staff Writer
NORTHWOOD, N.D. – Increasing numbers of farmers are sampling their soils, and that’s good news for Agvise Laboratories in Northwood. “This year was another record year for us,” said John Lee, Agvise Laboratories vice president. “There were days this fall when we received more than 4,500 samples a day.” He and Bob Deutsch, Agvise Laboratories president, attribute the increased interest in soil testing to the high cost of fertilizer and precision technology that allows farmers to pinpoint exactly what fertilizers are needed in a particular area of the field. Crop consultants, farmers, agronomists and fertilizer and chemical companies use the soil test-
ing services of Agvise. Once they determine which nutrients are lacking, farmers can apply fertilizers to improve them and, hopefully, increase yields. Agvise Laboratories, which became an employee-owned company in 1997, also tests soil samples for universities and corporations. The laboratory employs about 30 people, full-time in Northwood and 15, at its Benson, Minn., location.
Busy days
Once the crop is off in the fall, soil testing gets into full swing. “It gets later and later as more row crops come into the area,” Lee said. Weather conditions also play a big part in the soil testing schedule. “Just like the farmers, it’s a very weather-dependent
business.” Agvise’s Midwest location, its track record of providing accurate samples and the technical support its employees provide customers have helped it to build up its business, Lee and Deutsch, said. Besides testing soil samples, Agvise also analyzes plants, including corn, soybeans, potatoes and wheat to determine what nutrients they lack. “Plant analysis has gained tremendously,” Deutsch said. This month potato tissue samples from the southern United States are arriving at Agvise Laboratories. The laboratories hopes to have an even better year in 2011. Plans are to convert warehouse space into laboratory space. “By next year, we should be able to do about 20 percent more,” Deutsch said.