Bottom Line | Fall 2024

Fall 2024 A publication from MRGA

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THE COOP CONNECTION PICTURE PERFECT MAKE IT GRAIN HOW SWEET THE GROUND NEXT LEVEL FINANCIALS WELLNESS & TECH NEWS

BARNESVILLE

CASSELTON

DILWORTH

KRAGNES

BARNESVILLE 218-979-4160

LEONARD 701-645-2334

ROTHSAY 218-979-4161

CASSELTON 701-347-4465

LYNCHBURG 701-347-5487

SABIN 218-789-7482

DILWORTH 218-287-2375

PEAK 701-845-3975

KRAGNES 218-233-4247

PROSPER 701-282-4094

LEONARD

THIS ISSUE: PAGE 2 - The Coop Connection PAGE 3 - Picture Perfect PAGE 5 - Make it Grain PAGE 7 - How Sweet the Ground PAGE 9 - Next Level Financials PAGE 10 - Wellness Update PAGE 12 - EXCITING Tech Traffic

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LYNCHBURG

PEAK

PROSPER

The Coop Connection

What a year it has been at MRGA. This time of year, we often find ourselves reflecting on our harvest season. Harvest went pretty smooth as a dry fall led to a much shorter harvest season than we have seen in the past couple years. Prior to harvest, MRGA saw many changes in 2024. As we finish harvest and wrap up the rest of the calendar year this would be a good time to look back at all of the changes at MRGA in 2024.

As many of you know, AGP Grain Ltd had been a 28.6% owner of Maple River Grain and Agronomy, LLC. In December of 2023, AGP Grain Ltd approached MRGA indicating their potential interest in being bought out.

The local Maple River Coop board and the management team worked to negotiate the terms and conditions of their buyout, and the agreement was signed at the end of January of this year. This buyout allowed MRGA to make other business structure changes to be more beneficial to our patrons. More on that to come.

In late April and early May our new office building was completed. We moved employees from four different offices at our Casselton location to bring everyone under one roof. We had our main office building, along with offices in the chemical warehouse, north elevator, and fertilizer plant. Grain Inspection is still using their prior office and grading lab but we leased the rest of the space to the Red River Valley and Western Railroad so they can have an operations center here in Casselton.

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ROTHSAY

SABIN

With the AGP buyout completed, Maple River Grain and Agronomy, LLC was 100% owned by Maple River Coop. In order to take advantage of the tax benefits of the Domestic Production Activities Deduction (DPAD) we transitioned operating from the LLC to Maple River Coop dba MRGA. As of July 1st, 2024, we began operating under Maple River Coop dba MRGA. All employees, rolling stock, assets, etc. transferred to Maple River Coop and we dissolved MRGA, LLC in August of this year.

Another major change occurred with the announcement of Terry Johnson’s retirement at the end of June. We want to thank Terry for his 13 years of service during which MRGA, LLC has experienced several growth opportunities. With this transition, the Maple River Coop board of directors has allowed me the privilege to succeed Terry as the General Manager and CEO. I am excited for this opportunity to serve the patrons and the MRGA team in this capacity.

Maple River Grain and Agronomy, LLC was founded in 2004 and in August we held our 20th Anniversary Open House at our new office. I want to thank all our patrons, vendors, employees, and others that attended. We had great weather, and our employees did a great job planning and executing the event. Fun was had by all with a great meal, bouncy house, office tours, door prizes and many cold beverages to choose from. I want to say thank you to all who attended.

2024 has been all about change at MRGA. Change often requires additional effort, I sincerely thank our employees and board of directors for being flexible and resilient with the tall tasks that were put in front of them through the AGP buy out and transition from the LLC to Maple River Coop dba MRGA. We look forward to operating as a true, locally owned cooperative serving our patrons to the best of our ability. If you have any questions, please do not be afraid to reach out.

Alex Richard General Manager and CEO 2

2024

A few photos from our farmers and staff.

BRAD KUEHL SUNRISE NEAR FELTON MN

NORA ROCKSTAD NORTHERN LIGHTS

ETHAN KYLLO SEEDING

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JON LARSON FERTILIZER LOADING SUNSET

TERRY CZICHOTZKI NEWBORN DEER IN THE CORNFIELD

SANDY CZICHOTZKI COMBINING SOYBEANS AT SUNSET

SANDY CZICHOTZKI COMBINING CORN AT SUNSET

CAMERON LEE WORKING UNDER THE NORTHERN LIGHTS

RYAN TROM SUNSET DURING BEET HARVEST

PERRY RUST PROSPER ELEVATOR

DARREN BJORNSON CASSELTON SUNRISE

KYLE BURNETTE LEONARD BINS IN THE NORTHERN LIGHTS

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As I look back at the 2024 season a few things jump out at me. The first thing is of course Mother Nature and how she affects the decisions we make.

After a winter with little snow, all indications were of an early start to the planting season. That variable (which we have no control over) put a sudden stop to all that optimism. The rains came and blessed us with a terrific crop. Now as I write this, I think we would all welcome some of those rains back, but at least we had a terrific harvest season with very few interruptions and nice dry corn.

The markets were well off the highs of the previous year, and no one was excited to sell corn for less than $5.00 or beans for less than $12.00. We witnessed last year the highs at harvest and a steady decline after that, thinking it must rebound. One thing we must remember about the grain market is that it does not have to do anything and if it trades below your cost of production that is the growers’ problem, not the market. In this environment it is crucial to know where that selling point is. Once that is determined the next step is to be proactive with a marketing plan and then stick to it. While we were planting the crop there were some decent opportunities to make some sales. Although those sales were cheaper than the previous years, they were still at a profitable level.

Even if your grain sales are not what we are used to, in an era with abundant supplies, we must stop looking in the rearview mirror and look forward instead.

I like to market grain with “good until canceled” (GTC) orders at realistic values. This way a decision was made and if the order is not working it will not get traded. We can help you with placing these orders and have options for cash sales, hedgeto-arrive (HTA) contracts, and basis fixed contracts.

Please feel free to contact Kim, Tanner, or me to discuss how to make this all work. In closing, the grain team would like to thank all our producers for their continued trust in MRGA. We appreciate the opportunity to work with you and hope to earn more of your business in the future.

-Darren Bjornson

GRAIN TEAM Kim Bender, Grain Merchandiser/ Office Manager

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Tanner McDaniel, Grain Merchandiser

Darren Bjornson, Grain Merchandiser

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Grain Contracts From time to time, we are asked questions about what options are available at MRGA in the form of grain contracting. Currently, we offer four basic contracts: Priced, Hedge to Arrive, Basis Fixed and Price Later.

Priced: A priced contract locks in a futures price and the basis at the same time, establishing a flat price. The amount of bushels and the delivery period are also established at the time the contract is made. Ownership of the grain transfers at the time of delivery and is subject to the grading scales that are in effect at that time.

Hedge to Arrive: The Hedge to Arrive (HTA) contract locks the futures price. The basis can be established at any time but must be set before delivery or ten days before first notice day of the underlying futures month. * HTA contracts are subject to fees for deferred delivery periods.

Although the futures price is established, the producer is still open to basis risk. The basis is automatically locked when the first delivery is made. MRGA has updated our policy to allow HTA contracts to be rolled forward twice in the same crop year.

Basis Fixed: A Basis Fixed (BF) contract locks the basis with a set underlying futures month. It allows the producer to take advantage of market rallies, as the futures can be locked in at any time.

But, as with HTA contracts, the contract must be priced 10 days before the first notice day of the underlying futures month. If the producer has not found a favorable futures price, the contract can be rolled to the next futures month but is subject to market spreads and fees and cannot be rolled into a new crop year. MRGA will allow advances on up to 70% of the value of the grain.

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Price Later: The Price Later (PL) contract allows the producer to deliver grain without establishing a price. The grain must be sold on the cash market or can be rolled to a basis fixed contract.

Fees can apply to PL contracts, which is generally the case at harvest time. PL contracts allow the producer to haul when it is convenient for them, or when there is limited storage available on the farm. However, the producer also holds the risk of changing market conditions, while incurring the PL fees, if applicable. The elevator assumes the ownership of the grain at the time it is delivered.

For this reason, PL contracts cannot be applied to future contracts. Bushels that are delivered to MRGA without a contract are automatically applied to the PL program in effect at the time of delivery, if applicable.

We want all our patrons to understand the different types of contracts that we offer and the pros and cons of each type so that you can make the best decision possible for the sale of your grain.

We understand that there are many other types of contracts that are available through companies that offer marketing strategies and services. We encourage you to make sure that you understand the risks that are involved in all contracts that you sign.

Please give someone on our grain team a call at (701) 347-2755, if you have any questions or would like to talk about options for your harvest delivered grain, farm stored grain or new crop bushels. *First Notice Day is the last business day of the month preceding the delivery month. If an HTA contract is based on the December futures, for example, the basis must be set 10 days prior to the last business day in November, or around November 20th. If a BF contract is based on the December futures and has not been priced on or around November 20th, the contract will be rolled to the next futures contract. *

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“One Way or Another” It is an exciting time of the year, grain has been pouring into the elevator and harvest is wrapping up, positive harvest results are being reported. Your MRGA agronomists are getting a chance to see and evaluate the results of agronomic recommendations provided last fall through late summer in preparation for this fall’s harvest. It is important to reflect on this year’s results and learn from field yield maps, plots and field trials in preparation for 2025 success.

We need to start thinking ahead to 2025 to put ourselves in the best position for continued profitability. When considering input costs, statistics show the second most expensive crop we ever planted was in 2024 just behind 2023’s cost of inputs. As we look forward to 2025, some input costs have come down but not all have to the level we would want or hope. Input costs will continue to be a challenge in 2025, especially when compared to the commodity prices that we see today.

nitrogen stabilizer and Pmax Ultra to your dry fertilizer blends to protect from loss and improve nutrient efficiency are solid investments toward 2025’s success.

Secondly, we can increase profitability by utilizing early season pricing and maximizing discounts on seed and CPP purchases. Early commitments not only have early pricing discounts but also allow an agronomist to get the best seed varieties with the proper traits for your farm and disease spectrum. Starting early planning on CPP helps understand and acquire the necessary supply for the season ahead but can also save your operations money by comparing options and manufacturer programs. Making a solid plan taking an Integrated Pest Management approach which targets specific needs vs taking a blanket approach on your whole farm can add savings.

There are currently many low interest options to utilize to help with early buying, between Winfield Secure Financing, Rabo Agri finance, John Deere financial, Corteva’s True Choice program and even MRGA finance.

MRGA continues to have the unique opportunity that we think will help farms With that being said, we think there are some maintain profitability. Partnering with Winfield strategies moving into 2025 to help decrease United and utilizing the data gathered from some cost but still maintain and increase yields. over 20 years of answer plot insights we can “One Way or Another” we need to grow more build a comprehensive plan for your 2025s crop bushels. inputs Fertilizer, Seed, and CPP. It starts today with quality soil samples after harvest. By getting accurate results we can build a solid fertility plan in order to utilize and maximize return on investment for fertilizer purchases. Fields with variability should be sampled and have products applied to productivity zones to better utilize that investment. Applying products like Instinct 7

Let’s make a plan for Profitability! It already looks like 2025 is going to provide us with continued uncertainty and volatility, with elevated cost for seed and some CPP inputs much like we have seen in the last couple growing seasons. We should go into 2025 prepared, having a comprehensive plan that utilizes the available products and programs to

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continue profitability in a lower price commodity environment. Have a conversation with a MRGA agronomist and explore our precision ag offerings for maximizing fertilizer efficiency, and our early seed and cpp programs paired with partner financing to see how we can make your farm profitable “One Way or Another” for 2025.

VR viewing of a field.

Karl Berg, Agronomy Sales Manager

AGRONOMY TEAM Mike Flaten, Agronomy Manager

Mike Stetz, Agronomy Sales

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Karl Berg, Agronomy Sales Manager

Brian Marquardt, Agronomy Sales

Ethan Kyllo, Precision Agronomy

Jon Ellingson, Agronomy Sales

Mike Weed, CCA - Agronomy Sales

Mason Keefauver, Agronomy Sales

Justice Keefauver, Agronomy Sales

Tim Anderson, Agronomy Sales

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Bookings have started for the 2025 growing season! Something that you should take advantage of are our various finance programs. Financing your bookings doesn’t affect cash flow right now and locks down some of the things you know you’ll be using throughout the season. Additionally, financing also allows flexibility for bookings on seed and CPP to accommodate in-season changes. The following programs are available for the 2025 season.

MRGA Financing | This program is the most flexible financing option we offer as any agricultural input purchased from MRGA qualifies, including fertilizer and spreading costs. It is a great option for anyone looking to push payments out with loans maturing March 1st, 2026. The loans are revolving, which means you can pay them off and continue using the funds throughout the season as needed. These rates fluctuate with Prime but are currently as low as 7.80% (Fixed). The application for this program is entirely online and can be accessed through your MRGA Grower Portal. If you do not have access to your Grower Portal, let your Salesperson or our Credit Manager know, and we can get that setup for you. There is no application fee for this program.

Winfield Secure | We will have the Secure program available again this year with rates of either 4.5% (A-credit) or 6.5% (B-credit) Fixed, with a loan fee of $250. Payoff is due February 1, 2026. If you have been in the program for at least 2 years, you MAY be eligible for EZ Renewal. This means that renewing for the 2025 season is as simple as letting your Salesperson know how much you would like for the loan. If EZ Renewal doesn’t apply, it’s a very simple one-page application.

New customers can sign up with a one-page application as well by filling it out in-person or online. Limits include up to $500k for the one-page application or up to $1M with additional financial statements and a UCC filing. If you would like to make a payment or check any details on your existing loan(s), you can log in or create an account at MyAgriLoan.com.

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Corteva TruChoice| This program allows for a 10% discount/rebate on qualifying Corteva products. You must fund a TruChoice prepay account with a minimum of $5,000 by February 28th, 2025. There are two ways that this account can be funded. First, you can fund your own account by going to www.corteva.us.

Log in if you have an existing account or register for a new one. The second option is to have MRGA fund your account through our Retailer Prepay Account. To do this, you would simply make a check out to MRGA and then we will deposit those funds for you. Please note, any prepay that is funded through our Retailer Prepay Account can only be used for MRGA purchases.

Once a prepay account is funded, we can then transact your qualifying Corteva purchases within TruChoice throughout the season up to September 30th.

Rabo Agri-finance & John Deere Financial | These two are lumped together, because they typically carry the same programs. Both are used for any company specific offerings by Bayer, BASF and Syngenta. An example of utilizing one of these programs is financing Roundup. Since Roundup is not Winfield Secure eligible, you could finance it through Bayer’s program with a 2.9% Fixed rate (due in full November 2025). Each program has different requirements, interest rates, and payment due dates. For more information, please reach out to either your Salesperson or our Credit Manager.

This was a quick and brief overview of the programs we have available. As stated before, please contact your Salesperson if you are interested in knowing more about any of these programs. Feel free to reach out to our Credit Manager, Jonathan Brooks, regarding any questions as well.

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The MRGA Wellness Committee has had a fun and busy year bringing new ideas and group activities to maintain the commitment of providing a healthy work environment.

We started 2024 focusing our goals on everyday health by including a “New Year New Me” individual challenge this past winter. This challenge drove persistence, routine changes, and physical/mental healthy habits focusing on these key areas: 30 minutes of elevated heart rate, drinking 64oz of water, getting 7 hours of sleep, and taking an hour off all screen time. It was amazing to hear our employees implement this challenge at home with their families and friends! With feedback from the winter challenge, we believe it helped our employees maintain healthy habits going into the long hours of the spring season.

This April we as a committee felt that it was our duty to give back to the community, by Adopting a Highway north of our Kragnes elevator on Hwy 75. It was great to have the support of our employees during this time and it was a fun networking event to bring our multiple locations together.

We concluded our duties this fall with a final clean up. Check out our awesome signs when you’re in the area!

To kick off fall early we decided to put a twist on the winter challenge and compete as two-person teams with similar goals as the winter challenge. This challenge was a competitive one to say the least! Teams got to choose what level of goals they wished to strive for, and ultimately it made everyone understand how to push for new heights with the motivation from a coworker.

Thank you to all that participated.

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This fall was unexpectedly a busy/quick harvest for our customers, and it was amazing to hear the positive results! Mental and physical health can be tested during this time and as a wellness committee it’s our job to provide solutions to help navigate those struggles. We provided warm meals for our employees at the elevators on Fridays to help them stay nourished and focused on the busy weekends.

Looking forward, we want to be a resource not only for our employees, but for our patrons and provide challenges open to you and your families to be involved with us. The goals going forward is to bring healthy habits to all involved here at MRGA. We look forward to a successful 2025 season with everyone! Stay healthy and have a great holiday season.

Justice Keefauver Sales Agronomist

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MRGA’s Digital Growth, New Ventures, and Facility Enhancements A few months ago, we shared MRGA’s vision for transforming our agricultural services with the latest digital technologies.

We’re excited to report that things are progressing smoothly, with ongoing refinements designed to bring even more efficiency and reliability to your operations. Our commitment to innovation is unwavering, and we’re thrilled to keep you updated as we move forward!

What’s New in Our Digital Journey: 1.

MRGA Grower App – Our Grower App is already proving to be an invaluable tool for many of you, empowering your farms with real-time data analytics, weather forecasting, crop monitoring, and inventory management. With these insights now at your fingertips, our goal is to enable you to make faster, well-informed decisions right from the field or your office. We are continually fine-tuning the app to enhance usability and add features based on your feedback, ensuring it stays intuitive and tailored to the unique demands of agriculture.

2.

State-of-the-Art Office & Connectivity – Since the first half of this year, our new office space has served as a dynamic, collaborative hub for our team. Equipped with high-tech Zoom Rooms and state-of-the-art audiovisual tools, the office facilitates virtual meetings, interactive training sessions, and partner conferences. These upgrades support clearer communication and help us stay seamlessly connected to you and our industry partners. Additionally, our investments in high-speed internet and the latest WiFi 6 technology allow for faster data transfer, reliable video conferencing, and enhanced overall connectivity for the team and the smart devices integral to your daily operations.

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Enhanced Casselton Facility – As part of our commitment to quality and service accuracy, we’re adding high-resolution cameras at our Casselton location to better assist with grain identification and monitor hoppers as they leave. This initiative is a step toward even greater transparency and accountability, reinforcing our dedication to supporting you with reliable, efficient information from start to finish.

Looking Ahead We’re also excited to share that a new business venture is on the horizon! While we’re keeping the details under wraps for now, this initiative represents another way we’re working to expand our services and add value to your operations. We’re looking forward to unveiling it soon, so stay tuned for more details—we can’t wait to share this next step with you.

Thank you for being an essential part of MRGA’s journey as we work together to create a more connected, innovative future for agriculture. Your trust and partnership mean everything to us, and we’re excited about what lies ahead.

Bryan Trosen, IT Manager

WER PORTAL

ALL of your business activities with ease!

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1850 Governors Drive Casselton, ND 58012 701.347.4465