2022 Land O'Lakes, Inc. Annual Report

Page 1

2022 ANNUAL REPORT

FARMERS

ARE INCREDIBLE

Land O’Lakes, Inc. is a cooperative that’s nearly 3,000 member-owners strong. We know farmers and ag retailers are at the heart of creating a better world for all. We also know they don’t always get credit for the heroic effort they put forth each day. Farmers represent fewer than 1 percent of the U.S. population yet are responsible for solving some of society’s biggest challenges.

Because our success is tied to our member-owners’ success, we are committed to helping solve these shared challenges through innovative solutions, strong annual performance and by championing agriculture’s true potential. Throughout our system, we know Farmers Are Incredible, and we celebrate the farmers and ag retailers on the front lines working to create a sustainable future, vibrant rural communities and a safe and plentiful food supply.

PAGE 01 — LAND O’LAKES, INC. ANNUAL REPORT
TABLE OF CONTENTS LAND O’LAKES, INC. ANNUAL REPORT –2022 01 BY THE NUMBERS SCORECARD & LETTER 04 By the Numbers Scorecard Letter 04 06 04 30 VIBRANT RURAL COMMUNITIES 32 34 35 36 Expanding Broadband Access, the Cooperative Way Giving Back to the Communities We Call Home Working With USDA on Rural Community Economic Impact Flexible Labor Program Gains Momentum
02 ROOTED IN TOMORROW 08 Crop Inputs Animal Nutrition Dairy Foods Truterra 10 12 14 16 06 BOARD OF DIRECTORS & EXECUTIVE LEADERSHIP TEAM 46 Board of Directors Executive Leadership Team 46 48 PAGE 03 — LAND O’LAKES, INC. ANNUAL REPORT 03 SAFE & PLENTIFUL FOOD SUPPLY 20 22 24 25 26 Providing Risk Assurance for an Industry With No Do-Overs Churning Out Innovation in the Face of Inflation Dealer Programs Continue to Drive Growth for Our Members Supporting Food Safety Amid Growing Demand for Meat in Rwanda 40 41 42 05 SUSTAINABLE FUTURES 38 Working Together to Remove Barriers to Adopting Regenerative Farming Practices USDA Grant Allows Expansion of Truterra's Conservation Delivery System Land O’Lakes and Bel Brands Expanding Sustainability Program

BY THE NUMBERS

$19 billion $248 million $179 million $180 million OVERALL PERFORMANCE BUSINESS UNIT PRETAX PERFORMANCE Net Earnings Net Sales Cash to Members ($56M) Dairy Foods $20M Animal Nutrition $308M Crop Inputs Section 199A Pass-Through MEMBERSHIP 1,319 DAIRY PRODUCERS 932 AG RETAILERS 558 AG PRODUCERS 2022

$3M+ Member Match Contributions

24,700 Employee Volunteer Hours

$4.5M Cash Payments for Sequestered Carbon 237,000 Tonnes of Carbon Sequestered

100 Human Rights Campaign Corporate Equality Index Score

220 Participating Farmers in Carbon Program

$45M Grant Funding Secured by American Connection Corps Fellows

175+ Members of the American Connection Project Policy Coalition

53 Sites of Permanent Rural Broadband Expansion

48 American Connection Corps Fellows Across the Country

IMPACT
PAGE 05 — LAND O’LAKES, INC. ANNUAL REPORT

DEAR STAKEHOLDERS,

At Land O’Lakes, our success starts with our members’ success. When inflationary and other pressures increased, we worked to deliver both enterprise and member success. The company performed well, and we closed 2022 with net sales of $19 billion and net earnings of $248 million.

The results reflect market conditions and business agility, with strong performance in Crop Inputs insulating more challenging market conditions in Animal Nutrition and Dairy Foods. WinField United outperformed with a differentiated approach tied to in-season decision making, increased use of insights tied to data and stronger key partnerships. We understand from conversations with you, our retail-owners, that you also had very strong performance. We believe our partnership in technology and insights, as well as our influence with Basics, helped put you in a position to win.

In Animal Nutrition, we experienced the margin compression resulting from the strong crop inputs market. Despite this pressure, we showed solid results and invested for future competitive success. Truterra’s momentum continued as it scaled climate-smart commodities with selection from USDA and built capacity, while expanding new market opportunities.

In the Dairy Foods business, we saw fundamental success in commodity and retail brand volumes, share and new product launches. Additionally, higher milk prices at the farm gate generally resulted in a profitable year for you, our members. Even with these successes, cost pressures tied to dramatic inflationary pressure (transportation rates increased more in the last two years than in the previous 20 years, for example), an inverted powder market and a make allowance that has lagged inflation and hasn’t had an adjustment since 2008, resulted in a loss. We continue to be excited about the growth potential for the Dairy business as per capita consumption of dairy is at the highest it’s been in 30 years and U.S. dairy exports were the largest on record.

Our member-owned cooperative is rooted in communities across the country. The health and vitality of our industry and the communities that we live, work and operate in are vital to our long-term success. That’s why we continue to engage with policymakers in Washington, D.C., and in states across the country to help tackle big challenges and work together to create a better future for everyone.

To that end, our close to 3,000 member-owners and 9,000 employees are united in protecting member equity, supporting short-term profitability and capitalizing on the positive momentum of recent years to drive long-term business growth and shared success. We are committed to building on the collaborative spirit and trust developed over more than 100 years together.

PAGE 07 — LAND O’LAKES, INC. ANNUAL REPORT

ROOTED IN TOMORROW ™

As a cooperative system, helping farmers and ag retailers create a better world for all means delivering business solutions that drive shared success. For Land O’Lakes, Inc., that comes to life through value-added products, services and market connections across our four diversified business units.

We continuously work to ensure that farmers and ag retailers have the market access, tools and resources they need to maintain long-term relevance and tackle whatever challenges lie ahead.

PAGE 09 — LAND O’LAKES, INC. ANNUAL REPORT

CROP INPUTS

STRENGTHENING PARTNERSHIPS THROUGH COLLABORATION AND TRUST

Forming tighter partnerships with retailowners helps create a more seamless distribution process and allows our system to focus on growth. To date, WinField United has partnered with owners to secure 64 percent of seed, crop protection and crop nutrients sales under contractual agreements. These agreements strengthen relationships with owners, increase influence with manufacturer partners and clear the way for a more value-added go-to-market approach. This work is a natural extension for our system, built on the collaborative spirit and trust developed over decades of cooperation.

INNOVATING TO SUPPORT THE PRODUCTIVITY, PROFITABILITY AND SUSTAINABILITY OF EVERY ACRE

Our system’s unmatched data, insights and innovation pipeline allow WinField United to deliver unique financial and risk management products and services to support the productivity, profitability and sustainability of each acre. But to truly be an innovation leader, it’s important to be best in class in both the development and adoption of new products and services. In 2022, WinField United launched exciting new products such as Warden® CX II and Ascend²™. The business also saw a spike in the adoption of services with close to 100 owners enrolling 600,000 acres in an Advanced Acre® Rx prescription plan, and WinField United earning over $900 million in SECURE™ loan commitments.

CREATING A REAL-TIME ADVANTAGE THROUGH DIGITAL TOOLS AND ALLIANCES

WinField United continues to drive the adoption of digital tools to increase efficiencies and support data-backed decision making. In 2022, about 70 percent of all orders were transacted through the Evolve platform, up 30 percent from 2021. WinField United also accelerated an alliance mindset approach to working with leading digital partners to better turn our system’s data into a real-time advantage.

FEWER, FULLER TRUCKS DRIVE COST, MILEAGE AND EMISSION REDUCTIONS

Over the last few years, WinField United has taken steps to minimize one-off or half-full deliveries, investing in the digital tools, systems and capabilities to maximize the load efficiency of trucks making deliveries. In 2020, the average weight of product per load was 11,000 pounds. In 2022, that average rose to 21,000 pounds—a 90 percent increase. This improved efficiency has resulted in taking 17,000 shipments off the road, which equates to 2.4 million fewer miles traveled and a 3,400 metric ton emission reduction.

MAXIMIZING OUR SYSTEM’S POTENTIAL BY EVOLVING OUR MODEL

In late 2021, WinField United launched the Advanced Acre go-to-market approach to support our network by delivering data-proven solutions across products, services and connections to new markets. In the year since, implementation has been tremendous. While maintaining focus on delivering leading products and agronomic expertise, WinField United increased adoption of the services platforms and helped enroll over 315,000 acres in the Truterra™ market access program. This work has also taken shape in the development of internal and system talent through the Center of Excellence (COE) and by empowering teams to make smart and healthy decisions.

PAGE 11 — LAND O’LAKES, INC. ANNUAL REPORT

ANIMAL NUTRITION

TRANSFORMING ANIMAL NUTRITION

In response to changing market conditions, Animal Nutrition launched a transformation initiative designed to improve the customer experience and support growth. The project will be enabled by the implementation of a new Enterprise Resource Planning (ERP) system, which will modernize business practices and dramatically improve efficiency. This will allow Animal Nutrition to accelerate investment in its iconic brands and development of value-added feed solutions.

PURINA NAMED TRACTOR SUPPLY COMPANY’S 2022 EQUINE & LIVESTOCK VENDOR PARTNER OF THE YEAR

Following the honor of being named Tractor Supply Company’s Vendor Partner of the Year in 2021, Purina Animal Nutrition was once again recognized for its service and innovation as the farm supply retailer’s 2022 Equine & Livestock Vendor Partner of the Year.

PURINA FEED TUB RECYCLING PROGRAM EXPANSION

What was once a single-use plastic feed tub finds new life in eco-friendly products such as benches and fence posts as Purina works toward a circular supply chain with the expansion of its tub recycling program. The program grew this year with the introduction of the innovative ClearView Tubs, which bring a unique sustainable solution to customers while offering producer and supply chain efficiencies.

SCIENCE + LOVE CAMPAIGN PUTS A SPOTLIGHT ON PURINA’S INNOVATION & HEART

Every horse feed company claims to be the most cutting-edge on the market, but Purina knows real innovation comes from proven results and its latest feed marketing campaign highlights just that. Science + Love puts Purina's commitment to science and the love that fuels it center stage. As a result, 62 percent of current users said they have more pride in the brand and the campaign has generated nearly 43 million media impressions.

PAGE 13 — LAND O’LAKES, INC. ANNUAL REPORT

DAIRY FOODS

DAIRY FOODS RESILIENCE AMID MILK POWDER MARKET VOLATILITY

The milk powder market remained volatile throughout the year. Despite the market fluctuations, the Dairy Foods team managed to sell a record volume, which also supported additional growth in processed milk, particularly for our Carlisle facility in Pennsylvania. Furthermore, the business has been deepening relationships with key customers through a range of sustainability-oriented projects involving carbon reduction and water quality.

OUR BREAD AND BUTTER IS NOW CHEESE

The presence of the Land O Lakes brand in the dairy case cheese section expanded into Wisconsin and the Northeast in 2022. The line of cheeses, which includes farmstyle shredded cheese, chunk cheese and snack cheese, expanded from 200 to 2,000 stores and 12 items to 26 items over the course of the year. There are plans for continued expansion in the coming year that include additional varieties and regions.

QUESO SO GOOD, YOU’LL DOUBLE DIP

In early 2022, Land O’Lakes launched a queso in the grocery store. For years, Land O Lakes® Queso Bravo® Cheese Dip has been the No. 1 selling refrigerated cheese sauce in foodservice by volume. Now, families in the Southeast can have the same premium, restaurant-quality queso at home.

LET LOOSE AND HAVE A BUTTER BALL

Land O Lakes® Butter Balls launched as a new product in grocery stores in the Midwest this year. Inspired by consumers who picked up cooking during the pandemic, this is an exciting product for retail shelves. The product offers butter in a convenient, half-tablespoon portion that makes cooking even easier. Expansion continues from the Midwest with momentum into the Northeast, Mid-South and Southeast this year.

BUTTER BOARDS GO VIRAL IN 2022

In September 2022, a new viral trend took hold of social media with the creation of “Butter Boards,” a charcuterie-style spread with butter as the blank canvas for creativity. The trend came at a great time for the business as the team ramped up for the back-to-baking season. Land O’Lakes engaged in the conversation and was featured in local and national publications, and the team posted social media content to hop on the trend, which was some of the top-performing content of the year.

DAIRY 2025 GOAL PROGRESSING

In 2021, Land O’Lakes, Inc. launched its Dairy 2025 Commitment to help all Land O’Lakes memberowners complete an intensive, industry-leading on-farm sustainability assessment. Since the program’s launch, nearly 70 percent of Land O’Lakes’ milk supply has completed the initial assessment.

PAGE 15 — LAND O’LAKES, INC. ANNUAL REPORT

TRUTERRA

ENROLLING MORE FARMERS IN CARBON PROGRAM

Truterra offered two enrollment periods for its carbon program in 2022. These were built off the progress generated by its 2021 program, which resulted in more than $4 million in payments to eligible farmers who sequestered over 200,000 metric tons of carbon. Truterra offers farmers greater earning potential by paying based on results—carbon stored—rather than a set payment per acre.

SUPPORTING CARBON-CURIOUS FARMERS

In 2022, Land O’Lakes launched an effort to encourage more farmers to adopt regenerative farming practices by working to remove one of the biggest barriers—fear of lost profitability and productivity of acres. The Truterra™ market access program is the first time Truterra has marketed programs along with the WinField United Advanced Acre® Rx prescription plan. This agronomic plan includes products and ag technology recommendations, with a service warranty for performance.

UNLOCKING INSIGHTS FOR FARMERS AND RETAILERS FROM SOIL HEALTH ASSESSMENTS

Truterra developed a soil health assessment in collaboration with the Soil Health Institute to give farmers a snapshot of an individual field’s soil health. The Truterra™ soil health assessment is focused on five key indicators such as plant available water and mineralization potential, along with optimal ranges for different soil types and climate zones. In 2022, the Truterra™ soil health assessment was piloted in Iowa, Missouri and Kansas with 40,000 enrolled acres. This year, the Truterra™ soil health assessment will expand to 250,000 acres across eight Midwest corn-growing states from Kansas to Minnesota to Ohio.

SCALING SUSTAINABLE PRODUCTION

Truterra was selected for a grant from the U.S. Department of Agriculture that will help scale sustainable practices. This effort could ultimately engage up to 20,000 farmers and dairy producers, and it could impact more than 7 million acres. Ag retailers will play a central role, working with grant partners to help farmers adopt regenerative agriculture practices, including helping match farmers with incentives, agronomic advice, peerto-peer networks, data entry and more to support improved soil health systems.

SHOWCASING TRUTERRA’S LEADERSHIP IN DAIRY

Truterra has assumed a leadership position on the quantification and data aspects of dairy emissions to improve measurement and provide better insights for processors, food companies, dairy producers and more. The measurement tools Truterra is developing take into consideration all stages of life of dairy cattle and the products they produce.

PAGE 17 — LAND O’LAKES, INC. ANNUAL REPORT
PAGE 19 — LAND O’LAKES, INC. ANNUAL REPORT

SAFE AND PLENTIFUL FOOD SUPPLY

By harnessing our comprehensive data, insights and scientific approach, our cooperative system is supporting the productivity, profitability and sustainability of every acre and animal we touch.

This is about feeding a growing population, enhancing the relevance of our retail-owners and securing a bright future for our system’s farmers.

PAGE 21 — LAND O’LAKES, INC. ANNUAL REPORT

PROVIDING RISK ASSURANCE FOR AN INDUSTRY WITH NO DO-OVERS F

armers have little to no room for second guessing or second tries when it comes to critical business decisions for their operations. That’s why WinField United began offering the Advanced Acre® Rx program in 2020. It helps farmers identify opportunities in their fields to improve returns without making them carry the full burden of risk that comes with using new products or practices.

The program is specifically designed and has a proven ability to help increase profit per acre. But nothing is certain in agriculture, so if a farmer follows the customized plan and doesn’t reach an approved yield target, WinField United covers the cost of services via a service warranty. In 2021, 124,000 acres were enrolled in the Advanced Acre® Rx program through 30 retailers. That grew to 600,000 acres enrolled through 97 retailers in 2022, with even more growth expected for the 2023 growing season.

From supply constraints and lending cutbacks to extreme weather and evolving pest problems, a farmer’s job is only getting harder. It is our duty to work with our retail-owners to help farmers thrive in the face of adversity, and the Advanced Acre® Rx program is a critical piece of the farm management puzzle.”

PAGE 23 — LAND O’LAKES, INC. ANNUAL REPORT “

CHURNING OUT INNOVATION IN THE FACE OF INFLATION

he cost of buying and producing products skyrocketed in 2022. Yet despite inflationary costs and historically high markets, Land O’Lakes, Inc. never backed away from our commitment to create a market for our member-owners' milk and bring consumers innovative new products.

In 2022, our Dairy Foods business launched Land O Lakes® Cheese in the dairy case section, Land O Lakes® Queso Dip and Land O Lakes® Butter Balls in select regions. These products have been such a hit that expanded distribution is already underway. Plus, an exciting, new, limited-time flavored butter spread is set to hit store shelves in spring 2023.

We’re proud to have more products with the Land O Lakes brand in the dairy case section of the grocery store. We love being a part of the Land O’Lakes co-op because of the sense of community—and now we feel like we are showing up in our community that much more.”

T

DEALER PROGRAMS CONTINUE TO DRIVE GROWTH FOR OUR MEMBERS

The Retail Performance Specialist (RPS) and Farm Production Consultant (FPC) programs gained even more momentum, produced strong results and continued success.

The RPS program enhances employees’ efforts around display building, event support, social media content development and connectivity. Dealer and cooperative participants in the program yielded nearly 16,500 tons of additional sales in 2022. Meanwhile, through the FPC program, over 570 feed-focused team members evaluate current customer programs and make recommendations on Purina and Nutra Blend products. These consultants now promote growth with over 830 cooperatives and dealers through on-farm selling and consultation with sales increasing by over 12,500 tons in 2022.

Separate successes aside, combined, these two efforts have had an amazingly positive effect and offer invaluable training to all those involved. Last year, dealers and cooperatives with both programs grew their business with Purina by 9 percent.”

SUPPORTING FOOD SAFETY AMID GROWING DEMAND FOR MEAT IN RWANDA

and O’Lakes Venture37—the nonprofit, international development affiliate of Land O’Lakes, Inc.—works in 13 countries around the world to improve lives through agriculture, including through food safety and security. By empowering producers and processors to follow best practices in food safety and quality, Venture37 addresses critical barriers to nutrition and helps emerging economies gain access to reliable and safe food supplies.

In Rwanda, for example, demand for meat has been growing and is likely to rise further as the country becomes increasingly urbanized and more affluent. However, meat safety remains a challenge. The Feed the Future Orora Wihaze Activity—a five-year livestock market systems activity funded by the United States Department of Agriculture Agency for International Development (USAID)—partnered with Rwanda’s food inspection authorities to address this issue. This work is building the capacity of local meat processors and retailers and improving consumer trust in the quality and safety of meat hygiene, ensuring that safe and healthy food is available for all Rwandans.

One of the pillars of Venture37’s work over the past 40-plus years continues to be focused on improving the safety, quality and availability of nutritious foods around the world. By working with a variety of small-holder farmers and food businesses, we are supporting systemic change, providing the training and tools needed to ensure practices are aligned with local and global food standards."

“ L PAGE 27 — LAND O’LAKES, INC. ANNUAL REPORT
PAGE 29 — LAND O’LAKES, INC. ANNUAL REPORT

VIBRANT RURAL COMMUNITIES

By investing time, energy and resources into the many communities we call home, our cooperative system is breaking down barriers and helping create opportunities in rural America. This is about building vibrancy and economic prosperity while honoring the long-held values and entrepreneurial spirit that make these communities special to so many.

PAGE 31 — LAND O’LAKES, INC. ANNUAL REPORT

EXPANDING BROADBAND ACCESS, THE COOPERATIVE WAY

s a cooperative system, we know firsthand that expanded access to high-speed internet is a critical lifeline for health, education and economic growth. It’s also integral to driving the adoption of tools needed to support profitable and sustainable food production. Since its launch in 2019, the American Connection Project has continued to make incredible strides in closing the digital divide for rural communities.

In 2022, we launched our first American Connection Community in Aberdeen, South Dakota. In partnership with Agtegra and the Center on Rural Innovation, Aberdeen was offered several months of strategic planning and engagement to help the city create innovation hubs, assist with applications for state and federal funding and gain access to digital skills and tools. We also partnered with retail-owner Ceres Solutions to use improved connectivity to establish an Innovation Hub where they test new on-farm technologies such as drones and soil sensors.

The American Connection Project fuels change through the power of partnership, with so many great organizations combining their size, scale and resources to make a difference. Better connectivity in communities is critical for education, economic competitiveness, accessible health care and for our collective future—and we’re just getting started.”

A
“ PAGE 33 — LAND O’LAKES, INC. ANNUAL REPORT

GIVING BACK TO THE COMMUNITIES WE CALL HOME

Building on the positive economic impact of their businesses, Land O’Lakes, Inc. member-owners take great pride in supporting their communities through philanthropic efforts. Through the Land O’Lakes Foundation’s Member Co-op Match Program, retail-owners reached the $1.5 million cap in 2022, which Land O’Lakes then matched for a total of $3 million donated to local causes.

This year also marked the 12th year of the Land O’Lakes First Run program in partnership with Feeding America. First Run donations totaling 258,000 pounds were distributed across seven states in 2022, bringing the program’s grand total to over 6.7 million pounds of product donated.

Member-owners are committed to serving their communities and working to ensure rural vitality. Land O’Lakes is proud to assist them in their goals and help maximize the impact for their communities.”

WORKING WITH USDA ON RURAL COMMUNITY ECONOMIC IMPACT

According to the most recent Census of Agriculture, just 1.4 percent of U.S. farmers identify as Black. Larry Holland is part of that 1.4 percent. He is also a farmer within the Land O’Lakes, Inc. cooperative system and was one of 12 people named to the newly established U.S. Department of Agriculture (USDA) Subcommittee on Rural Community Economic Development (RCED).

Long-standing structural and institutional barriers have limited the access of Black, Indigenous and people of color to land, financial assistance and educational resources. Subcommittee members such as Larry have begun evaluating USDA programs and services and will make recommendations on how the agency can remove access barriers.

It’s a huge responsibility. I am a bit daunted but absolutely honored and committed to doing whatever it takes to make a difference.

Right now, I am talking to as many people as I can in my community, as well as across the country, to inform my thinking and to understand what can be improved to help create a more inclusive ag industry.”

“ PAGE 35 — LAND O’LAKES, INC. ANNUAL REPORT

FLEXIBLE LABOR PROGRAM GAINS MOMENTUM

n early 2022, the plant in St. Joseph, Missouri, became the first Land O’Lakes, Inc. manufacturing facility to offer a program that would allow full-time and part-time workers to choose their preferred hours. The Flexible Labor Program was developed to meet the workforce at their availability to help overcome pandemic-led labor shortages.

The program has appealed to parents/caregivers, college students and people coming out of retirement who need flexible working hours. A sign of early success, there are now more than 130 part-time flex positions across the enterprise in more than 20 production facilities, with up to 600 flex roles expected to roll out in 2023.

Now I can get my son ready in the morning, drop him off at my mom’s house and then pick him up at 1 p.m. every day.

I now have the opportunity to see his big milestones at school, take him to doctor appointments, his first T-ball practices. I won’t miss anything like that. And that means a lot to me.”

CYPRESS EVANS ST. JOSEPH PLANT FLEX WORKER

“ PAGE 37 — LAND O’LAKES, INC. ANNUAL REPORT

By developing a leadership position in on-farm sustainability, our cooperative system is contributing to the health of the planet and creating new value streams along the way. This is about future-proofing our system, protecting our natural resources and positioning farmers and the agriculture industry for long-term success.

PAGE 39 — LAND O’LAKES, INC. ANNUAL REPORT

WORKING TOGETHER TO REMOVE BARRIERS TO ADOPTING REGENERATIVE FARMING PRACTICES

This year, our teams at Truterra and WinField United worked together to blaze a trail for farmers to improve their soil health and potentially become eligible for future market opportunities. The Truterra™ market access program combines Truterra’s work supporting farmers’ adoption of sustainable practices with WinField United’s scientific approach to profitable crop management and the local expertise of our ag retail network.

While Truterra has established a leadership position in providing farmer-driven carbon programs, the Truterra™ market access program is unique in that it is marketed together with the WinField United Advanced Acre® Rx prescription program to help farmers manage risk. This collaboration between Truterra and WinField United demonstrates that sustainability and profitability can go hand-in-hand, and we were proud to enroll over 315,000 acres in the program this year alone.

Nobody is better-positioned to be outstanding stewards of the land. But when it comes to sustainable farming, we know that one of the biggest barriers to entry for farmers is the risk of lost income. We are thrilled to be working with our retail-owners to give farmers peace of mind that they are getting holistic agronomic, conservation and carbon market support.”

USDA GRANT ALLOWS EXPANSION OF TRUTERRA’S CONSERVATION DELIVERY SYSTEM

This year, Truterra announced its successful bid for a grant from the U.S. Department of Agriculture to scale sustainable practices in production agriculture. This is a big win for our cooperative system because it demonstrates local retailers’ position as trusted advisors, our farmer leadership and Land O’Lakes, Inc.’s ability to drive adoption of sustainable practices and scale downstream market opportunities.

Working with grant partners, participating retailers will introduce farmers to regenerative agriculture practices through incentives, agronomic advice, peer-to-peer networks, data entry support and more. Truterra is helping farmers adopt regenerative farming practices that could enable them to reduce greenhouse gas emissions by approximately 7.2 million metric tons of CO2e over the course of five years—roughly the equivalent of taking 1.5 million cars off the road for a year.

As a farmer-owned cooperative, I see tremendous opportunity for Land O’Lakes farmers and retail-owners to lead development and scaling of this new market—and potentially be rewarded for their stewardship while future-proofing their businesses for the long-term.”

BETH FORD
PAGE 41 — LAND O’LAKES, INC. ANNUAL REPORT
O’LAKES,

LAND O’LAKES & BEL BRANDS EXPANDING SUSTAINABILITY PROGRAM

n 2022, Land O’Lakes, Inc. received the Innovation Center for U.S. Dairy’s Outstanding Supply Chain Sustainability Award for its work with Bel Brands USA and Boadwine Dairy. This multi-year pilot program began in 2021 and is designed to demonstrate the value of feed production practices that improve soil health and reduce greenhouse emissions.

As a member of Land O’Lakes, fourth-generation dairy farmer Lynn Boadwine took part in the program to increase the use of cover crops and other sustainable agricultural practices on his farm. The project provides cost incentives, access to resources and expertise, and the use of the Truterra™ sustainability tool with participating farms. The project also provided valuable proof of concept that can be scaled to additional dairy farms and supply chain participants in the future.

As the world industrializes, it’s inevitable we are having an impact on the climate. The neat part about agriculture is we can adapt and do good for the environment.”
“ PAGE 43 — LAND O’LAKES, INC. ANNUAL REPORT
LYNN BOADWINE DAIRY MEMBER-OWNER
PAGE 45 — LAND O’LAKES, INC. ANNUAL REPORT

BOARD OF DIRECTORS

RICK BRAND Somers, IA BRIAN BUHR Roseville, MN SHARDA CHERWOO New York, NY PAUL COPPIN West Fargo, ND JUSTIN CURTI Tulare, CA JEFF JOHNSON Chaska, MN NEAL KEPPY Eldridge, IA WALLACE KNOCK Willow Lake, SD STEPHEN MANCEBO Tulare, CA ANDY MASON Worton, MD CARL DICKINSON Marquette, NE JARED FERNANDES Tulare, CA JOEY FERNANDES Tulare, CA SADIE FRERICKS Melrose, MN JOHN HABEDANK Twin Valley, MN STEVE HARNISH Washington Boro, PA EVAN HILLAN Ladysmith, WI LIZ NORDLIE Wayzata, MN ROSS PLUMBERG Vermillion, KS STAN STARK Pratt, KS CHRIS SUKALSKI LeRoy, MN DOUG SWAIM Cedarville, OH JEFF TROIKE Attica, IN PAUL SCHWEIGER Hillsboro, WI

EXECUTIVE LEADERSHIP TEAM

BETH FORD President & Chief Executive Officer HEATHER ANFANG SVP, U.S. Dairy Foods TEDDY BEKELE SVP & Chief Technology Officer PETE KAPPELMAN SVP, Member & Government Relations TIM LEVINY SVP, Asia-Pacific & Global Dairy Ingredients BRETT BRUGGEMAN EVP & Chief Operating Officer LISA DEVERELL EVP & President, Animal Nutrition YONE DEWBERRY SVP & Chief Supply Chain Officer JOHN ELLENBERGER SVP, Land O’Lakes Venture37 SHEILAH STEWART SVP & General Counsel JULIE SEXTON SVP & Chief Human Resources Officer BILL PIEPER EVP & Chief Financial Officer
PAGE 49 — LAND O’LAKES, INC. ANNUAL REPORT
HEATHER MALENSHEK SVP & Chief Marketing Officer
Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.