MKC Connections | Summer 2019

SUMMER 2019 | WWW.MKCOOP.COM

Connections

FARMING BY THE ACRE Page 8

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To set-up you MKC Customer Portal Account, visit www.mkcoop.com at your convenience.

For more information, contact your nearest MKC location or 800-864-4428.

Contents PRESIDENT’S COLUMN

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The One Constant The one constant at MKC is the focus on ease of doing business through new and innovative products, programs and services.

Connections Mid Kansas Cooperative @midkscoop Mid Kansas Cooperative @midkscoop MKC - Mid Kansas Coop

EMPLOYEES

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Employee Training By Leading Management Expert Bruce Tulgan MKC invests in team by hosting one-day workshop with author and motivational speaker Bruce Tulgan.

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Students and Co-op Benefit from Summer Internship Program MKC opened its doors to 16 summer interns looking to gain applicable skills and receive greater insight into the world of agriculture.

FEATURES

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Farming by the Acre Acre by acre, the MKC Optimal Acre Program brings more success on the farm to member-owners through precision ag technology.

Agriculture Helps Servicemembers Transition MKC supports SAVE Farm through agronomy services and precision ag expertise to help veteran and transitioning military members.

Taking Action Through Advocacy MKC plays a role in advocacy efforts on issues affecting the industry, cooperative system and member-owners.

MKC Mission | To create customer, employee and partner success to provide a safe and sustainable food supply.

MKC Vision | Partner with customers to successfully navigate the complexity of modern agriculture and industry.

MKC Values | The success of our business will be determined by our ability to focus on safety, courtesy, image and innovation.

Editorial Staff Nichole Gouldie Communications and Brand Manager Ashley McKenny Communications Intern Brityne Rucker Communications Intern Management Dave Christiansen President and CEO Danny Posch Executive Vice President and CFO Dave Spears Executive Vice President and CMO Erik Lange Executive Vice President and COO Anne Warren Executive Vice President and CHRO Board of Directors Allan Wegner Chairman Jason Gaeddert Vice Chairman David Mills Secretary Keith Becker C.J. Blew Duane Jonson Sara Hasty Hal Mayer Ben Schrag J. Daniel Eakes John Borth Connections is distributed free to MKC memberowners. When reporting an address change, please contact (620) 345-6328 www.mkcoop.com or contactus@mkcoop.com.

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PRESIDENT’S COLUMN BY DAVE CHRISTIANSEN

The one constant

I try to reflect to avoid redundancy every time I sit down and write an article, but I invariably end up back in the same place. Once again, I find myself telling you how amazed I am of the business climate and the changes we are all experiencing.

I suppose this update will be no different as the world continues to spin faster and faster on the farm and in the world of local cooperatives.

The one constant in this ever-changing environment is MKC’s focus on our commitment to “Shared growth.

Shared success.” This tagline drives us every day and manifests itself in many forms. Perhaps most noticeable to you is the efforts our team has placed on making it easier for you to do business with us. Our attempts are focused on enhancing our locations, technology and service offerings to provide a difference you can experience in your operations daily.

One example would be the effect our two train loading facilities have had on our footprint. The train loading facilities have shipped an average of 25 to 30 million bushels per year since construction. By doing so, Team Marketing Alliance, LLC. has marketed your grain to points, including foreign markets that we historically have never accessed, and finding new markets every day. TMA has effectively taken tens of millions of bushels out of our footprint to help improve the value of all of the grain you handle and continue to put more money in the hands of all farmers, regardless of where they deliver their grain. Just the existence of the two cooperatively-owned train loaders have conservatively put an additional 25 million dollars in the hands of farmers in our footprint over the past four years. Those dollars didn’t exist before their construction, and the dollars stayed here in the communities we work and live.

Our effort to centralize the dispatch of our application equipment is another way we are focused on enhancing the customer experience. By having a team of employees utilizing available technology to route rigs and tendering equipment, we have placed equipment in the right place at the right time and have cut days off of the wait time. We are becoming a much more logistics driven company rather than facility oriented.

We are focused on getting the product where and when it is needed, rather than it sit in inventory and hope

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you need it. By no means are we perfect, but these efforts show signs of real promise and allow our location managers to improve satisfaction surrounding custom application.

Another effort focused on improving the customer experience is the TMA Mobile App. The app allows producers to use a mobile phone to see grain tickets as soon as their truck leaves the scale. Other features include bid sheets, contracts and more.

These are just a few of the efforts we have implemented to ensure we are continuing to make it easier for you to do business with us and making your life easier. We continue to develop new programs and tools, including routing fuel trucks, accepting digital signatures, and placing orders online. Every day, we are striving to bring forth innovative ways to raise the bar for you.

We continue our growth trajectory due to the fact that it has proven to be beneficial to our members. At times it will come in the form of a merger or an acquisition. The most rewarding growth, however, continues to be our annual growth of 200 to 250 new member-owners year over year. These are individuals who want to sign up for membership and pay the fee based on what they have experienced or seen. We take a lot of pride in that growth, and understand that you earn and keep customers through daily actions. Every year we measure our customer retention and customer satisfaction, and we continue to receive high numbers.

Our continued growth has had a significant impact on our ability to attract and retain talent. Today, now more than ever, people desire to work where they can make a difference and have a career rather than just a job. Working at the local cooperative allows people to have just that. Our employees can be actively involved in helping you achieve your goals, in turn, that gives our employees immeasurable satisfaction. That is what engages and retains excellent people.

Thank you for your continued support. We strive to set our sights high for success. You will continue to see new facilities and services as we make every effort to anticipate the challenges you will face in your operation and come up with a solution. Amongst all of the changes, the one constant is our focus on our commitment to “Shared growth. Shared success.”

EMPLOYEE TRAINING BY LEADING MANAGEMENT EXPERT BRUCE TULGAN

By Nichole Gouldie, Communications and Brand Manager

Often organizations fail to deTulgan is internationally recI manage work in remote locations, velop managers on what it means ognized as the leading expert on some are in need of constant to be the boss and are chronically young people in the workplace and guidance and then meanwhile, I’m under-managing their employees. one of the leading experts on lead- busy.”

They do not take charge of the ership and management. Bruce is Tulgan challenged MKC emday-to-day business basics. They a best-selling author, an adviser to ployees and member-owners who don’t spell out expectations. They business leaders all over the world manage employees to re-engage don’t keep track of performance and a sought-after keynote speakwith their employees by spelling measurements. They don’t correct er and management trainer. Since out expectations, provide specific mistakes or reward success.

1993, Bruce has worked with tens of guidelines, correct failure quickly In fact, too many of and reward success on the today’s supervisors, spot. managers and leaders are “You can do more for failing their staff and their everyone, you can do organizations by “unless for everyone, and der-managing.” there’s only one other That was author and logical possibility – do motivational speaker more for some people Bruce Tulgan’s message and less for others,” Tulto MKC employees in gan said. “The only fair his talk, titled “It’s Okay way to do that is based to Be the Boss.” Tulgan’s on what they deserve, entertaining and engaging and the only way to make workshop provided clear, that happen is if you’re Bruce Tulgan leaded a one-day workshop for more than 80 MKC and step-by-step “back to basetting up everyone for TMA employees focused on building strong, highly engaged managers sics” guidance for helping success.” who know how to position employees for success. people in supervisory roles MKC’s focus on embecome the strong, highly engaged thousands of leaders and managers ployee development expands yearmanagers who know how to posiin hundreds of organizations ranground in multiple different areas tion their employees for success. ing from Aetna to Wal-Mart; from covering all areas of the company “As one of the leading agriculthe Army to the YMCA. from hiring to safety and leadership tural companies in Kansas, MKC It is often said people are an to customer service. believes its employees play an organization’s most valuable asset.

“MKC takes great pride in essential role in the growth and The goal is to attract and retain the offering our employees first-class success of our business. Therefore, best talent, then drive their perfor- growth and educational opportua priority of ours is to invest in our mance, but for many companies, nities,” Warren said. “In addition team to help them continue to that’s easier said than done. to Mr. Tulgan, we regularly send grow and learn,” said Anne Warren, “What most leaders tell us is, it’s employees to various developsenior vice president and CHRO, not just my boss squeezing me, it’s ment programs, such as those MKC. “Bruce Tulgan engaged our everyone, including the people I’m offered by the Disney Institute, management team with tips and trying to manage, and I’m stuck in Dale Carnegie, and several othbest practices on how to be better the middle,” Tulgan said. ers. This focus on employee deleaders, and the group left with Tulgan said he often hears from velopment helps make us better several takeaways to use with their managers, “I’ve got too many peoevery single day.” teams.” ple to manage, some of the people

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NEWS BRIEFS 20 STUDENTS AWARDED $1000 SCHOLARSHIP FROM MKC

By Ashley McKenny, MKC Communications Intern

Ten high school seniors and ten college students were selected to receive a $1,000 scholarship for the 20192020 academic year in the MKC Scholarship Program. Since 2008, a total of $124,000 has been awarded through the MKC Scholarship Program.

“The MKC Scholarship Program is one way the cooperative can help support exceptional students who someday soon will enter the workforce to make a difference in the industry and communities where their career paths take them,” said Dave Christiansen, MKC president and CEO. “The number of talented young men and women applying for our scholarship program increases each year making the selection process more difficult each year. We are honored to help these young students financially.”

Students who received the scholarship provided information on their community involvement, extracurricular activities and employment. They also addressed college and career goals along with key aspects of the cooperative system such as how it benefits farmers and ranchers, what belonging to a cooperative system means for a member-owner and how co-ops create a community environment among the local producers and employees.

High school students awarded scholarships are: Cale McCabe, Buhler High School; Bailey Eck, Inman High School; Casen Steere, Council Grove High School; Jenri Conley, Centralia High School; Emily Smith, McPherson High School; Faye Smith, Newton High School; Tess Fairbanks, Onaga High School; Kinzi McLaughlin, Onaga High School; Kenneth-Clement Koelzer, Onaga High School; and Eva Hinrichsen, Rock Creek High School.

College students awarded scholarships are: Haley Peterson, Kansas State University; Seth Yenni, Kansas State University; Brandon Entz, Kansas State University; Sara Schlickau, Hutchinson Community College; Katrina McGowan, Washburn University; Kelli Nightingale, Bethany College; Ashley Nightingale, Bethany College; Janae McKinney, Kansas State University; Katie Krehbiel, Northeastern Oklahoma A&M College; and Emily Meier, Kansas State University.

MKC HOSTS 54TH ANNUAL STOCKHOLDERS’ MEETING

By Brityne Rucker, MKC Communications Intern

The 54th Annual Stockholders’ Meeting was held July 16 at Tony’s Pizza Event Center in Salina, Kansas.

Over 650 people were in attendance including stockholders, their families and special guests.

The theme of this annual meeting was “Persever-

ance”. Through this year’s many changes and challenges, there’s not many other words that can embody this past year. Much like perseverance, growth has been another key word used at MKC this year. “While growth always come with its challenges, it has been good for our co-op since 1965 when our directors merged the first three coops together. It’s good for our employees, our vendors and ultimately for our member owners. I will say that growth, regardless of the avenue, if it’s mergers, acquisitions, joint ventures or my favorite – one customer at a time and this is a classic example, once again of where perseverance is critical,” said Dave Christiansen, MKC president and CEO. Stockholders heard reports on the financial status of the cooperative from Danny Posch, chief financial officer for MKC. The cooperative continued to invest with the intent of positioning MKC for the future. Overall the fiscal year of 2019 was classified as a profitable year for the cooperative and its memCaptain Charlie Plumb closed the 54th Annual Stockholders’ Meeting with his bers with growing net fixed assets from $24 keynote presentation about perseverance. As a prisoner of war in the Vietnam War, Captain Plumb insights on how to cope with difficulties as well as opportunities.

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Continued on page 14

NEWS BRIEFS MKC OFFERS LAND O’LAKES COOPERATIVE FARMER MEMBER HEALTH PLAN In response to the growing demand for more affordable and extensive healthcare options, through a partnership with Land O’Lakes, Inc., MKC is proud to offer the Land O’Lakes Cooperative Farmer Member Health Plan to its producer members in Kansas.

The Land O’Lakes Cooperative Farmer Member Health Plan, administered by Gravie Administrative Services LLC, a Minneapolis-based benefits marketplace, allows producers to choose from several ACA compliant plans — all of which cover each of the ten Essential Health Benefits (EHB’s). It also gives them access to a broad, national provider network and year-round guidance from licensed advisors.

“MKC recognizes that access to quality, affordable health care is a major concern for our member-owners,” said Dave Christiansen, MKC president and CEO. “Connecting farmers to this health care option for their family and employees allows us to deliver more value to their operation in the form of an affordable and improved health care coverage.”

Land O’Lakes first launched the Land O’Lakes Cooperative Farmer Member Health Plan in Minnesota in 2018.

The company then expanded the plan to Nebraska in 2019, making it available to approximately 46,000 eligible producers across the two states. It intends to continue to grow this solution for its member producers and farmers within its cooperative system.

“I am proud of the instrumental role MKC played in bringing this opportunity to the farmer members of Kansas cooperatives as recognized by Land O’ Lakes,” Christiansen said. “In true cooperative fashion, this is just another example of the important work we can accomplish when working together.”

The requirements for participation in the Land O’Lakes Cooperative Farmer Member Health Plan include residing in Kansas and being an eligible voting member of MKC. For coverage starting January 1, 2020, the Open Enrollment period is from October 28, 2019, through December 20, 2019, at 5 PM CT. Producers can call Gravie at 844.538.4690 or visit gravie.com/coop to learn more.

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FARMING BY THE AC Acre by acre, the MKC Optimal Acre Program brings more success on the farm to member-owners through precision ag technology.

By Mikey Hughes

Janice Stevens, member-owner near Manhattan and Optimal Acre Program grower, meets with MKC Strategic Account Manager Nathan Larson in the field after reviewing some of the precision ag data.

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With a growing emphasis on maximizing the dollar, minimizing inputs and reducing environmental impact, modern agriculturalists have started utilizing the Four R’s of nutrient stewardship. To accomplish those goals, the Four R’s suggest using the right fertilizer source at the right rate at the right time and in the right place.

To correctly implement the Four R’s, producers must know the baseline nutrient concentration of the field and utilize variable-rate technology. The best way to achieve that goal is through precision agriculture technology.

The MKC Optimal Acre Program is an innovative solution for producers seeking to implement precision agriculture in their operations.

“The number one goal of the Optimal Acre Program is to increase profitability by lowering the perunit cost of production,” says Ross Benisch, MKC precision ag specialist and Optimal Acre Program lead. “Optimal Acre was created around the idea of our tagline. We understood that there was and remains a great opportunity for our member-owners to increase their profitability through the implemen-

tation of precision ag practices and technology.”

The foundation of Optimal Acre is soil sampling. “Once we know the underlying macro fertility and begin to address any issues, we can start to implement additional tools and technology to drive profitability,” Benisch says.

One of the goals of the Optimal Acre Program is to lower the barrier of entry into precision ag. GPS grid sampling can get expensive quickly, with first-year costs often exceeding $15 per acre.

The team at MKC helps producers utilize precision agriculture through the Optimal Acre Program.

Lauren Liggett, MKC decision ag consultant, has seen first-hand how the program can save producers money on inputs and earn them more money at harvest.

Curtis Kohman is an MKC member-owner in the Abilene area who started grid sampling through the optimal acre program in 2017. Like many growers, Kohman farms some rented ground. He was interested in enrolling in the Optimal Acre Program on his rented land but was hesitant to pay for the program on his own.

Kohman decided to reach out to his landlord for assistance.

“I told him, it’s costing me money and it’s costing you money. It takes me the same amount of time to farm that land, and if I’m not doing the best job I can, it’s hurting both of us,” Kohman said. “It’s kind of like

MKC Decision Ag Consultant Lauren Liggett and Curtis Kohman. Kohman is an MKC member-owner near the Solomon area and is enrolled in the Optimal Acre Program.

CRE baking a cake, if you don’t know what to put in there, your end product probably won’t be very good.

If you put the right ingredients in the bowl and make it the right way, you’re going to have a lot better product at the end.”

After speaking with Kohman, the landlord agreed to split the cost with Kohman to sample all of his ground. He pointed out that the services provided from consultation to satellite imagery are an invaluable addition to the program. Kohman believes the Optimal Acre Program has made a significant impact on his operation.

“You can apply the minimal amount of nutrients to raise a crop or you can do it the right way and apply what the crops need in the right spot,” Kohman said.

Another MKC member-owner, Janice Stevens near Manhattan, Kansas, has also seen the problem-solving power of the Optimal Acre Program.

Stevens noticed that blanket applications did not suit her highly-variable fields and decided to start using variable-rate technology.

Before beginning with the Optimal

Acre Program last year, she was using GPS grid sampling for some time. It wasn’t until the data from the grid sampling was paired with other layers of data and the agronomy expertise that comes with the Optimal Acre Program that she was able to really extract the value of precision ag.

With the help of Strategic Account Manager, Nathan Larson, she was able to identify and treat a field that had chronically underperformed.

“Now that I’m in the Optimal Acre Program, having another set of eyes viewing my yield maps and imagery has made a difference. I noticed one field had some very good beans and some terrible beans mixed in,” Stevens said. “Nathan took all of my yield maps from the last eight years and was able to track the trends displayed in the field and make a recommendation to solve the problem.”

Stevens lists Larson’s help as the most significant benefit of the Optimal Acre Program. It gives her peace of mind to know he will have her back throughout the growing season.

Being relatively new to the

Optimal Acre Program, Stevens is hopeful it will continue to keep her accountable and organized in field treatments.

The Optimal Acre Program sets a standard of how precision agriculture is foundational to enabling profitable decision to benefit the producer. At the heart of the program lies the strategic account managers, working to ensure each year is profitable for every producer and delivering on success.

“I have never met a grower that could not benefit from implementing precision technologies and practices in their operation,” Benisch says. “We are here to help our member-owners navigate the complexities and challenges of precision so they can achieve their goals. Whether that is growth, building for the next generation, being profitable and continuing to do what they love, precision ag and the team at MKC can help.”

To learn more about the Optimal Acre Program, visit www.mkcoop. com/OptimalAcreProgram.

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AGRICULTURE HELPS SERVICE MEMBERS TRANSITION

By Mikey Hughes

There are currently 2.3 million transitioning U.S. veterans and soldiers. As many as 40% face some kind of physical, mental or behavior challenge when they come home and adjust to civilian life. In a response to serve national needs, Gary LaGrange, veteran and founder of the SAVE Farm saw possibility.

LaGrange’s daughter was a psychiatrist at Fort Riley for six years.

During her time there, she noted that servicemembers were considerably more relaxed in the greenhouse than the office. That simple observation led LaGrange to seek more information about agricultural work for veterans. He got in contact with the Veterans Affairs office and came across more interesting data.

The VA states that 2.3 million veterans and transitioning servicemembers exist and of those servicemembers, 40 percent wish to farm.

LaGrange connected the dots between VA and USDA statistics and formed a plan for the Servicemember Agricultural Vocational Educa-

tion (SAVE) Farm in 2015.

“Our primary mission is to support servicemembers as they transition into civilian life. We want to facilitate healing for those in need and help them find a purpose through agriculture,” LaGrange said.

Since 2015, the SAVE farm has continued to grow. Their holistic approach to educating servicemembers about agriculture includes provided housing, counseling and of course, vocational training. They focus on four pillars of growth, transition, training, therapy and succession. Currently, the SAVE farm is building facilities to ensure students will be well taken care of while learning new skills.

The lack of facilities has not stopped the SAVE farm from working toward their mission. They started beekeeping in 2016 and that business has grown exponentially. For now, their classes are mostly based out of their honey and apiary supply store. So far, they have trained 360 servicemembers to run farms of their own, and the number continues to grow. In 2018, the SAVE farm participated in their second harvest season on the 320 acres they currently farm.

When MKC Precision Ag Specialist, Craig Miller, first heard of the SAVE Farm, he knew their The MKC Manhattan location hosted current service members mission aligned with from Fort Riley who were a part of the SAVE Farm. MKC employMKC’s. LaGrange ees provided a tour of the facilities and talked about the prodvisited Miller’s office ucts, programs and services MKC offers including some used on hoping for aid with the SAVE Farm.

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spraying and planting, what he received was much more.

“This operation is just getting off the ground and helping them from day one is just as important as being there when they expand,” Miller said.

The farm is now officially enrolled in the Optimal Acre Program.

They receive grid soil samples and precision agriculture technology that allows the farm to track trends in their fields, at no cost to the program. MKC provided grain trucks for the farm during harvest and hauled the grain to the Manhattan location for storage.

MKC is currently working with the farm to garner more support from partner companies.

“It’s extraordinary for MKC to reach out to us wanting to help. Because of MKC, we are able to save the dollars for training that would’ve been consumed by spraying, seed cost, storage and hauling,” LaGrange said. “MKC also plays a vital role in educating our students about how the cooperative fits into the fabric of agriculture. Every student that has participated in our program has passed through MKC’s doors and learned from the workers there.”

As the SAVE Farm grows, MKC plans to be there, helping however they can. Whether it’s providing services for the fields, or educating servicemembers about futures markets, MKC is excited to continue in partnership with the SAVE Farm.

For individuals wishing to help the farm, LaGrange asks for advocacy, collaboration, advice, assistance and if available, resources. For more information on how you can help, visit www.thesavefarm.org.

STUDENTS AND CO-OP BENEFIT FROM MKC SUMMER INTERNSHIP PROGRAM What comes to mind when you hear the phrase “Shared Growth.

Shared Success?” Is it the partnership between the producer and MKC? Is it the image of an MKC spray rig, spraying your crops, hoping to increase yield? While this all may ring true, the “Shared Growth.

Shared Success.” message is also being applied to the future leaders of the industry as part of the MKC Internship Program.

“MKC has a great opportunity through the internship program to impact the next generation in agriculture,” says Hilary Worcester, MKC coordinator of talent and industry partnerships. “As these interns grow within our company, they are able to influence MKC with new ideas and enthusiasm that helps MKC become more successful as well.”

This summer, MKC opened its doors to 16 summer interns looking to gain applicable skills and receive greater insight into the world of agriculture. Students from multiple different colleges were placed in locations extending from Manhattan to Haven, with internship experiences stretching from agronomy to information technology.

“MKC intentionally seeks a diverse class of interns,” Worcester says. “We want students from different schools, majors and backgrounds to allow for the most knowledge exchange within the intern group and with MKC as a whole.”

To assist with the overall experience, the interns were placed with a mentor to help answer questions and act as a guide for the duration of the summer. Departments who welcomed an intern included accounting, agronomy, communications, TMA, sales, information

technology and general agriculture.

In order to give the students a well-rounded experience, the program takes the interns across Kansas for different learning and networking opportunities.

“Our goal is for the interns to gain a wider understanding of not only MKC, but agriculture as a whole,” Worcester says. “This exposure should expand their perspective which allows them to choose the correct career path, have the confidence to work in a group and ultimately become more innovative and effective in their future.”

The interns kicked off the summer at Co-op 101 hosted by the Kansas Cooperative Council.

Throughout the summer, intern spend time visiting different agricultural events and facilities in Kansas. Stops included Kansas Ethanol, Canton Terminal and the Irrigation Innovation Plot near Moundridge where they learned more about the partnership between MKC and American Robotics.

Spearheaded by Worcester, the MKC Internship Program places an emphasis on the individual projects interns work on each summer.

The projects are assigned to the interns based on their interest and what their location or department is needing. “The projects have not only benefited the interns and MKC but will ultimately benefit our member-owners,” Worcester explained.

“Projects give the interns an opportunity to develop their problem-solving skills, project planning and management skills, communication, and presentation skills by tackling a real-world problem that is impacting our employees or customers,” Worcester says.

Projects conducted by the interns include analysis of grain bunkers, grain sensor efficiency, dispatching system, Irrigation Innovation Plot data management and videos highlighting MKC careers.

“These interns are our future employees and partners in the industry,” Worcester says. “We have a twelve-week window to help the interns grow in their knowledge of agriculture, MKC as a company, their own skills, and where their future career might lie. As MKC helps them grow, we are contributing to their successful future.”

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TAKING ACTIO THROUGH AD Every day, policy makers and staff in national, state and district offices make decisions that impact local communities, rural businesses, and farmers and ranchers. For MKC, it is critical to serve as advocates for our member-owners.

“We often hear our member-owners say they don’t have a voice with the people who make policy that impacts their livelihoods, but I can assure you that is not the case,” said Dave Spears, MKC executive vice president and CMO. “At MKC we are diligent in being a strong resource for policy makers who need facts and input to make informed decisions.”

Here is how MKC plays a role in advocacy on issues affecting our industry, our cooperative system and our member-owners.

Annually, MKC representatives participate in Legislative Action Day hosted by KARA, KGFA and KCC. The annual event allows members of the agribusiness industry to see government in action and meet with elected officials.

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Senator Pat Roberts invited MKC representatives including Board Chairman Allan Wegner to sit amongst Kansas’ agricultural ambassadors at River Creek Farms near Manhattan with USDA Secretary Sonny Perdue. Producers and industry leaders voiced concerns on current issues.

ON VOCACY Lending a Voice MKC Board Chairman Allan Wegner, a farmer near Onaga, Kansas, says a special invitation to the White House in Washington D.C. demonstrated the importance of face-to-face discussions with policymakers.

During issue briefings and meetings with Congressional leaders and their staff and administration officials including White House staff and USDA at the 2018 National Council of Farmer Cooperatives Washington Conference, Wegner, Spears and Board of Director C.J. Blew discussed the impacts of trade tariffs on agriculture.

Spears said, “As the only producers in the room, Blew and Wegner were afforded the opportunity to speak first-hand on the impacts tariffs and farm economics have on farming and our member-owners.”

The round table meeting in Washington D.C. included a select group of approximately 20 leaders representing the cooperative system including MKC gathered around the table together with policy makers. Others around the table included CHS, Land O’ Lakes, CoBank, Ocean Spray, Dairy Farmers of America and others.

In addition to the meeting at the White House, Blew, Spears and Wegner met with individual Congressional offices and their staff on the Hill. Other opportunities for MKC employees and board members to provide testimonial have occurred at multiple national and state meetings to advocate on behalf of all of their members.

Boots on the Ground What started out as a special event to build relationships five years ago, the MKC Congressional Staff Day has turned into an annual event. Staff members from congressional offices in Washington D.C. along with district and state officials are invited to the one-

day information sharing session. In addition to updates and awareness on key issues affecting both the cooperative system and MKC member-owners, staff members have the opportunity to tour MKC locations and meet local employees.

“Our size and scope allow us to collectively represent a large group of farmers and have a voice,” Spears said. “It is rewarding to host Congressional staff for a day and be in a unique situation where we can gather around the table and ask them what we can do to help them and be a resource for them.”

Working Together Through industry and trade associations MKC is a member of our employees are actively participating in shaping policy through membership and leadership positions. MKC staff have the opportunity to contribute to policy discussions led by those organizations on a regular basis.

Organizations like the Kansas Cooperative Council and NCFC work on a wide range of legislative and regulatory issues of interest to agricultural cooperatives and their farmer and rancher owners.

Members of both MKC and TMA staff play key roles in the leadership on the board of directors of multiple state and national trade associations including Agricultural Retailers Association, Kansas Agribusiness Retailers Association, National Grain and Feed Association, Kansas Grain and Feed Association and the Grain Elevator and Processing Society.

So many issues impact agriculture, from trade to regulation, to rural infrastructure to the Farm Bill.

“When we come together and share our story, we present a strong, united voice that can make a difference, Spears said. “It’s our responsibility to continue to be proactive and be engaged on behalf of our member-owners.”

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ELEVATORS PREPARE FOR HARVEST

ANNUAL REPORT

Genetics and farming practices, along with a little help from mother nature have propelled record change in the agriculture industry. These changes have caused the cooperative to reinvent their business model to continue to be relevant to growing operations. We understand change is always difficult, but the planning to meet future needs is always at the top of TMA and our member’s minds.

Our territory has been blessed with above averages harvests and is preparing for another harvest in a matter of weeks. This influx in grain production and the shift to more fall crop acres has created a market situation where supply is out pacing our local demand. Recognizing this trend in our territory has allowed your cooperative to continue to renew it infrastructure by executing our speed and space plan while continuing to gain access to new markets for our grain.

We have been preparing to meet the increase in local production by renewing the infrastructure of your cooperative. In the past 10 years we have added 48 million bushel of storage and our local receipts have increase by 60 million bushels. Adding the storage space allows TMA to continue to take advantage of opportunities in the market while still providing our owners with a place to dump their grain.

A perfect example of this plan was the 4.2 million bushel bunker built near Yoder, Kansas. This bunker allowed us to both meet the harvest expectations of our customers and generate additional revenue through capturing the carry in the market. Revenue that is realized through merchandising gains is passed back to its members through our member co-ops patronage programs.

Gaining access to additional markets has been just as critical to keeping up with the harvest time needs of our customers. The unit train loader in Canton and Milan, Kansas has added significant value to your cooperative. Historically our corn moves to feedlots in western Kansas, but due to excellent growing conditions and an abundance of local supply our crops were left looking for alternative homes.

This year we have shipped 27 million bushels by trains out of the laden supply environment of central Kansas to the demand driven markets of Mexico and the Houston Gulf. This access has allowed us to maintain a competitive bid while making room to handle the upcoming harvest.

TMA and our member cooperatives are owned by the producers, so there is no question we will make room for our customers’ grain.

million to $147 in the past 10 years.

At fiscal year-end, MKC had a very strong working capital position of nearly $47 million, up $33 million from 2009.

“This continued investment is critical to our organization’s ability to remain relevant within the industry, to remain relevant to our vendors, and most importantly to remain relevant to you, its owners,” said Allan Wegner, board chairman in his Chairman’s Report.

Wegner went on to discuss the merger with Plains Equity. “While some may perceive challenges associated with this, we believe that as agriculture continues to evolve, distance is becoming more of an advantage rather than a handicap.

MKC is a product of multiple mergers, and just as the previous ones have proven, we are confident this merger also will make us better.”

Allan Wegner also recognized Randy Ellwood for his time and service to the MKC Board of Directors and presented him with a retirement gift.

Elected to three-year terms on the Board of Directors were Jason Gaeddert, District 3; Allan Wegner, at-large; and Ben Schrag, at-large.

Captain Charlie Plumb was the guest speaker for the event. He told his story of a prisoner of war during the Vietnam War. On his 75th mission, with only days before returning home, Plumb was shot down, captured, tortured and imprisoned in an 8 foot by 8-foot cell. He spent the next 2,103 days in communist war prisons. Captain Plumb went on to explain, “most men didn’t die from the 8-foot cell, they died because of the 8 inches between their head.” He explained the importance of having a sound mental state and not getting trapped by the 8 inches between our heads.

By Devin Schierling, TMA Grain Marketing Manager

14 Connections

Continued from page 6

We’ve built a handy mobile app that allows you to easily access your account information with us on-the-go wherever you are.

Check-out bid sheets and market information.

View your contracts and delivery tickets from the field, the office or the shop.

THE EAST FARM INC.

THE EAST FARM INC.

307 W. Cole P.O. Box D Moundridge, KS 67107

PLAINS EQUITY MEMBERS APPROVE UNIFICATION WITH MKC Plains Equity Exchange and Cooperative Union membership votes to approve unification with MKC. After a series of informational meetings, the owners of Plains Equity approved the merger with MKC by a super majority of 95% at a special vote meeting on April 4, 2019.

“We are pleased that Plains Equity members have voted to unify Plains Equity and MKC. Both boards felt strongly that unification would bring value to the members and employees of Plains Equity and the results of the Plains Equity vote reaffirms this,” says Allan Wegner, MKC Board Chairman. “MKC has proven to show value to members through unification by delivering quality products and services, innovation, growth and profitability.”

Initial merger discussions between the cooperatives began before the official announcement on February 18, 2019, with the respective boards approving an Agreement and Plan of Merger.

“We are confident that through unification we will build a stronger foundation for our cooperative and member-owners and maintain the cooperative system for future generations,” says Roger Holmes, Plains Equity Board Chairman. “On behalf of our board, management and employees, we appreciate every member who cast a ballot to make our cooperative stronger.”

Plains Equity and MKC officially united on June 1, 2019.

The new MKC will consist of 43 locations with nearly 400 employees dedicated to serving its member-owners. The cooperative offers a wide range of products, programs and services through its agronomy, energy, feed, energy and risk management divisions to meet the needs of agricultural producers across its’ footprint.