Bottom Line | Winter 2023-2024

Winter 2023-2024 A publication from MRGA

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THE COOP CONNECTION A YEAR IN PICTURES STRIVING FORWARD MAKE IT GRAIN HOW SWEET THE GROUND NEXT LEVEL FINANCIALS TECH TRAFFIC

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

STAY CONNECTED!

www.mrga.com

LEONARD

THIS ISSUE: PAGE 2 - The Coop Connection PAGE 3 - A Year in Pictures PAGE 5 - Striving Forward PAGE 6 - 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

Maple River Grain and Agronomy, LLC was formed in 2004. The company was a merger between Prosper Farmers Cooperative Elevator, Chaffee-Lynchburg Farmers Elevator and AGP Grain Ltd out of Omaha, NE. AGP owned the north elevator in Casselton, and with the merger in 2004 Maple River Grain and Agronomy, LLC broke ground on a new shuttle loading facility in Casselton. In 2017 Chaffee-Lynchburg Farmers Elevator and Prosper Farmers Elevator merged into Maple River Coop, which has had a majority ownership of Maple River Grain and Agronomy, LLC (MRGA).

ROTHSAY

SABIN

In early December, AGP approached MRGA, LLC with interest that they would like to be bought out of their minority ownership of the LLC so they can focus on their core business of soybean crushing and exporting soymeal out of Gray’s Harbor in Washington state. The past month and a half the Maple River Coop board and MRGA Management have been working on potentially buying out AGP. It is with great pleasure that the MRGA board and management team can announce that the deal closed on January 31, 2024, and Maple River Grain and Agronomy, LLC is now 100% owned by Maple River Coop.

So, the big question is what will change at MRGA, LLC? The simple answer is not a lot on the day-to-day level. There will be no staffing or management changes. One advantage to being completely owned by our local cooperative (Maple River Coop) will be some tax benefits from the Domestic Production Activities Deduction (DPAD). In order to do this, we will eventually dissolve MRGA, LLC and operate the coop under Maple River Coop dba MRGA. Our goal is not to rebrand, but to continue using the MRGA moniker. Along with the tax benefits to the Cooperative and Patrons, all proceeds from operations will be allocated to our local patrons.

Once again, the MRGA, LLC board and management team are excited to go through this transition to becoming a 100% locally owned cooperative and continue serving our patrons with the exemplary service and products they have come to expect.

-MRGA, LLC Board and Management Team

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pictures

A YEAR IN

To our customers, partners and team members - what an amazing year! Here’s to everything 2024 has in store.

JANUARY NEW YEARS FERTILIZER TRAIN

MAY PREPPING FOR PLANTING

SEPTEMBER ROTHSAY CORN HARVEST 3

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FEBRUARY LOADING TRAINS

MARCH WE HELD OUR ANNUAL MEETING

APRIL THE START TO FERTILIZER SEASON

JUNE THE CORN IS GROWING

JULY

EMPLOYEE APPRECIATION FAMILY NIGHT

AUGUST CELEBRATING GLYNDON DAYS!

OCTOBER HARVEST MEALS

NOVEMBER HARVEST IN FULL SWING

DECEMBER COMPANY CHRISTMAS PARTY

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In retrospect, 2023 was a great year for MRGA, LLC. We ended the year with a bottom line of $6,855,547, down slightly from the record we set in 2022 of $7,145,275. This was mostly led with backto-back above average yields and great fertilizer and chemical sales. Spring fertilizer season went very well with both acres and tonnage of fertilizer applied up substantially from 2022. Through the summer, chemical sales volumes were good but overall dollars of chemical sales were lower due to declining prices of chemical. Chemical availability has, for the most part, recovered in the past couple of years. Our fall fertilizer sales and application acres were higher than expected as well.

outgrown our current office, and broke ground on our new office building in Casselton in 2023. Our goal for building the new office is to get our agronomy sales, grain purchasing, IT division, precision ag department, and administration under one roof. Currently those employees are spread around the Casselton location in four different offices (main office, chemical warehouse, north elevator, and the fertilizer plant).

Having one central office location will allow us to continue to grow and add staff as needed. It will also help with communication and ease of access for our patrons. We feel this will help our operational efficiency through team continuity, increased productivity and accountability, space for sales/customer/board meetings, and a grain and agronomy dispatch pod.

We hope to move into the new office in early summer.

Grain movement for the spring and summer was steady as we were emptying bins on the farm and our own facilities. In April and May, we completed a The consistent financial performance of MRGA large maintenance project, where we replaced the has allowed us to invest in ourselves and buy out screeners and rebuilt the distributor on top of the our minority partner AGP. With MRGA, LLC now fully Casselton elevator. Wheat harvest yields were better owned my Maple River Coop we will work to transithan expected. With the lack of rain in August, soytion out of the LLC and operate as a bona fide coop. bean yields were average but the rain in July really More on that to come as the year progresses. pushed the corn yields to levels most of us were not expecting. In early October, we saw our first corn out We want to thank all our patrons for their of the field. The first bushels of corn coming in were business in 2023. As we move into 2024, we look forlower moisture than expected, but as the soybean ward to continuing to serve you and your farm needs harvest finished, mother nature turned wetter and as a 100% locally owned cooperative. most of the corn started coming in at 18-21% moisture. As bins on the farm filled up, we were inundated with corn that all had to make it through a dryer. We started piling corn on the ground in late October and finished in mid-November with close to a million bushels on the ground in Casselton. Overall, it was a great harvest. MRGA employees once again rose to Terry Johnson, Alex Richard Kim Nehring Mike Flaten Agronomy Mgr COO CFO the occasion to handle larger than expected yields. CEO MRGA has seen a large amount of growth over the past several years. We have added an agronomy sales manager, financial analyst, an internet technologies division, precision ag division, human resources specialist, and five locations in Minnesota through the purchase of Valley Ag Partners. We have 5

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There is an old saying around here that if you don’t like the weather, just wait five minutes and it will change. After the close of my first growing season here at MRGA, that is how the 2023 crop year went. There are a lot of things that stand out the most to me as I look back on what happened over the course of last year. The first thing is just how quickly things can change with the weather, the crop conditions, and the markets.

The emergence of most crops was better than average even with some getting planted past the typical window for that maximum yield. The efficiency of today’s producers is just amazing, and this shows by how quickly the crops can get planted. After the crop was up and growing the first major struggle was the lack of rain and the high temperatures. When we see spring wheat knee high heading and flowering in June, it is very hard to be optimistic about what the bushel potential will be.

The row crops on the other hand seemed to enjoy the heat, although there were some spots that did show stress almost daily. When the crop reached that critical reproductive stage, we did receive sporadic rain fall with some fields receiving adequate rain and right next door barely enough to settle the dust. Trying to predict what a yield will be is a difficult task and even the best at this skill missed the mark by a long way on this crop. The wheat crop was fantastic with decent protein for how many bushels we got and surprised everyone. Soybeans were also decent considering the growing season we had. Now the biggest surprise of all was the quality and size of the corn crop. We also were blessed with a decent stretch of weather to get all this work done. An October snow event did give us a scare thinking winter was here way too early.

The second big change is just how fast the market reacted to this big crop. In June and July, the Dec corn contract was $6.29 and when it went

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off the board $1.73 lower, we all were left wishing we had sold more over the summer. Soybeans also suffered the same fate, trading from a high of $14.00 down to a present low of just above $12.00.

You can almost say the perfect storm occurred to give us lower grain prices starting out with a record corn planted acres and finishing with a record high yield. I guess we should feel fortunate to have made some sales at good levels and still have more to sell, just unfortunately at a lower level. We all know that the market must go down so it can come back up and especially when we have ample supplies globally of grain, we will just have to be patient but be disciplined to know this is the new trading ranges for a while until some of this surplus is consumed or there are production issues some place in the world. These may be the most important times to form a plan on how to move this crop because we will grow another crop in just a few short months.

The grain team here at MRGA want to thank all of you for your business and would like to welcome any comments or suggestions on how we can help your farm in these challenging times. Feel free to reach out to Kim, Tanner, or myself to discuss the various ways to market your grain. Growing a crop seems to be much easier than marketing it and I am afraid this will not change.

-Darren Bjornson

GRAIN TEAM Kim Bender, Grain Merchandiser/ Office Manager

Tanner McDaniel, Grain Originator

Darren Bjornson, Grain Originator

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“MORE MORE MORE!”

is clearly how you guys like it. It’s evident by looking around at the piles of grain at terminals in our geography. 2023, for many, brought more acres, more bushels, and more grain that needed to be stored or piled. The quest we have as sales agronomists is how do we continue to build off of a successful growing season and get you MORE in 2024?

As always, the quest begins at the soil level by evaluating field nutrient levels. With last year’s increased production, we know that there will be fewer nutrients available for the 2024 crop. Three things to consider would be: 1. Are we getting quality soil samples that are a good representation of the field or zones sampled?

2. With increased yields year after year are we setting our fertility goals high enough to account for increased production capabilities?

3. Do we have a plan to distribute nutrients in a place where they can be used most efficiently?

Dry fertilizer costs have declined from the past high levels and in those fields with depleted reserves, this may be the opportunity we need to push those levels up to ensure productions levels can be MORE in 2024. With proper fertility levels and placement, today’s genetics can surely bring us more.

With our unique partnership with Winfield United, MRGA agronomists have a high level of confidence picking hybrids and varieties that have the highest probability for more bushels. By utilizing Answer Plot data, agronomists can choose the best products across all Winfield partner brands.

That Answer Plot data combined with local field experience not only helps us choose the best prod7

uct, but also helps us know how to best manage plant population, how each product responds to additional nitrogen management, and how those products will respond to in season applications like foliar micronutrients and fungicides. MRGA agronomists have access to the best genetics and data to manage those products to bring you MORE in 2024.

In addition to seed selection and hybrid management to achieve MORE, the Answer Plot system is being used to evaluate the products in the emerging biologicals market. It’s helping our agronomists make recommendations with a high degree of confidence on products that show increased performance in our environment.

Products now labeled with a BioVerified label are just that. In the Answer plot research they have shown to bring consistent positive results across multiple locations in data year over year.

In addition to the above measures to get MORE in 2024, MRGA is partnering with Truterra Ag to bring additional opportunities for you to get more on every acre in 2024. Through conservation efforts from reduced tillage, to the addition of cover crops, to your current and past management practices, Truterra Ag will be offering per acre payments to you! In the future, we see unique possibilities to offer more dollars through grain markets to specific channels and partners and rewards for nitrogen management by using stabilizers and biologicals on your acres. Consumers are driving a unique market for sustainably grown commodities, and we want to be there with opportunities for you to capture those dollars.

MORE MORE MORE, sounds like the addition of a bit MORE to current production plans in a tight market. With increased interest rates and the

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cost of borrowing money to operate, we know how important it is also to address those challenges to get MORE in 2024. Our finance portion of the newsletter discusses some of those challenges and options available with our partners. Hopefully we can help ease some of those borrowing pains that come with the increased cost of money needed for operating a successful business and staying profitable while going after MORE. It is with a high degree of confidence that we know; with proper nutrient management, proper hybrid selection, and in season management, that we can get you MORE in 2024. In fact, our partnership with Winfield United has allowed us the opportunity to offer the Advanced Acre Rx program, backed by over twenty years of Answer Plot data, to bring you insurance that those three items will bring you MORE in 2024.

Congratulations on your successful 2023 season that brought those increased acres, bushels, and opportunity for profitability. If you haven’t already done so, sit down with your sales agronomist and ask questions, see how confident they are in nutrient management planning, hybrid selection and management practices of those hybrids. Ask about the programs that can help ease borrowing concerns for inputs and how to insure that investment with our partners. Lastly, look at the opportunities that are unique and new with BioVerified biologicals and see if you can get a piece of those conservation dollars consumers are driving in our current market. MRGA sees many ways to get you MORE in 2024!

VR viewing of a field.

AGRONOMY TEAM

Mike Flaten, Agronomy Manager

Karl Berg, Agronomy Sales Manager

Ethan Kyllo, Precision Agronomy

Jon Ellingson, CCA - Agronomy Sales

Mike Weed, CCA - Agronomy Sales

Mike Stetz, Agronomy Sales

Brian Marquardt, Agronomy Sales

Mason Keefauver, Agronomy Sales

Justice Keefauver, Agronomy Sales

Karl Berg, Agronomy Sales Manager Tim Anderson, Agronomy Sales

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KIM BENDER

Bookings have started for the 2024 growing season! Something that you should take advantage of are our various finance programs. You can make use of these programs by doing a product booking with your salesman, and then paying for that through one of the finance programs. It doesn’t affect your checkbook or cash flow right now, starts cost savings for the 2024 crop, and locks down some of the things you know you’ll be using throughout the season. Below is a summary of the programs we offer.

Winfield Secure | We will have the Secure program available again this year. With the increase in interest rates we’ve all experienced lately, the Secure program is not immune either. This year, we are looking at a rate of 4.99%-6.99% fixed, with a loan fee of $200. Payoff is due February 1, 2025. If you have been in the program for at least 2 years, you MAY be eligible for their “EZ Renew” where renewal for 2024 is as simple as just letting your salesperson know that you want to renew, and at what amount. If EZ Renew doesn’t apply, it’s a very simple one-page application. New customers can sign up with a one-page application, or a new OLA – OnLine Application. Limits up to $500k with the one-page app, up to $1M with an application and current financial statement. 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.

Corteva TruChoice Prepay Program | This program has been around for a couple years and allows for a 10% discount/rebate on Corteva products. You must fund a TruChoice prepay account with a minimum of $5,000 by March 1st, 2024. There are two ways that this account can be funded. First, you can fund your own account by going to www.corteva.us and either log in or sign up for a new account. The second option is 9

to have MRGA fund your account through our retailer account. To do this, you would simply need to make a check out to MRGA and then we will deposit those funds for you. Once a prepay account is funded, we can then transact your Corteva invoices within TruChoice throughout the crop year, up to September 30th. This allows you up to 10% savings on Corteva products throughout the season.

Rabo Agri-finance & John Deere Financial | These two are lumped together, because they typically carry the same programs. These are used for any company specific programs by Bayer, BASF and Syngenta. One use for these two is for financing Roundup products. Roundup is not eligible for Winfield Secure, so we can make use of Bayer’s program where you would finance Roundup and one other Bayer product at a minimum of $10,000 to start. Most of these programs appear to be at 1.99% interest rate, with a due date of either the November or December statements of Rabo and JDF. 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 new credit manager, Jonathan Brooks, for any questions as well.

You can reach him at jbrooks@mrga.com or 701-730-6884.

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JAMIE MANN

MARK PUEPPKE

TANNER MCDANIEL

SABRINA BURNETTE

TERRY CZICHOTZKI

DARREN BJORNSON

LEARN MORE!

We had fantastic employee participation in our 2023 summer fitness challenge where teams had to “step it up” in step challenges for 12 weeks and track via fitness watch to earn prizes! The challenge received awesome feedback around adopting healthy habits outside of the office and many employees got their family involved and made it a fun routine!

During 2023’s busy spring, we provided healthy grab and go snacks such as various granola bars, various fruit, trail mix, fruit snacks, jerky, and crystal light packets to keep applicators and truck drivers satisfied during the long days.

During 2023’s busy fall, we provided warm meals to our locations that had grain services and truck traffic to keep everyone working hard over the weekends to support our customers!

As we kicked off 2024 after the holidays, we released a “New Year New ME” challenge focusing on not only physical health, but also mental health. The winter months can take a toll on everyone mentally and physically with shorter days and colder weather.

We wanted to give people hope and healthy habits to overcome winter obstacles. Our daily challenges consist of 30 minutes of elevated heart rate, drinking 64oz of water, 7 hours of sleep, and 1 hour of “unplug” time

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outside of work. We asked employees to share how they spend their time “off screen” and the feedback is amazing from: spent more time with my kids, read a book, do housework, talk to my significant other more, go to church, got a workout in, etc.

We also purchased some mental health workbooks for our employees to set goals, look at positives in life, mitigate stress and help understand how valuable we are!

We would like to provide you all with these challenge sheets to use at home with your family or on your own to adopt some healthy habits and get through winter a healthier version of yourself and ready for a busy spring!

2024 Wellness Tracking Form In 2024 We are also looking to “adopt a highway” and volunteer to help pick up ditches on a designated section of road within our trade territory. Keep an eye out for more information on involvement and dates!

We look forward to having another safe, efficient, healthy, goal orientated, and productive year with you all!

Justice Keefauver Agronomy Sales

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WE'RE HIRING

SALES AGRONOMIST SEASONAL GRAIN AND AGRONOMY ASSOCIATE

AGRONOMY/SOIL SAMPLING ASSOCIATE GRAIN OPERATIONS ASSOCIATE MECHANIC TRUCK DRIVER CUSTOM APPLICATOR DIGITAL CONTENT AND MARKETING SPECIALIST

Tim Schneider HR Manager

701.347.3153 www.mrga.com

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701.347.4465 marketing@mrga.com

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GROWE

You can now access ALL o 11

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Embracing a Digital Dawn: The Future of Agriculture in MRGA As we usher in a new year, MRGA stands at the forefront of technological innovation in the agricultural sector. With a successful rollout of our cutting-edge app and the construction of a state-of-the-art office, we are poised to redefine the landscape of modern farming in the year ahead.

The Power of Precision: MRGA Grower App In the dynamic realm of agriculture, the key to success lies in harnessing the power of technology. MRGA proudly announced the triumphant launch of our revolutionary app the other year. This app integrates seamlessly with our agricultural processes, offering or will offer features like real-time data analytics, weather forecasts, crop monitoring, and inventory management – all at the touch of a button. Designed with user-friendly interfaces, it empowers our farmers to make informed decisions swiftly, enhancing efficiency and productivity on the field.

Nurturing Growth in the Virtual Space In tandem with our commitment to technological advancement, MRGA is gearing up to establish a futuristic office space. Set to be unveiled in the coming months, our new office will be equipped with state-of-the-art facilities to ensure a seamless blend of virtual and physical collaboration.

Zooming into the Future Our new office will feature dedicated Zoom Rooms, transforming the way we connect and collaborate. With high-quality audiovisual equipment and integrated communication tools, these rooms are designed to facilitate virtual meetings, training sessions, and conferences. This not only enhances the efficiency of our internal communications but also opens up new avenues for collaboration with partners and stakeholders.

Lightning-Fast Connectivity Say goodbye to lag and connectivity issues! MRGA is investing in high-speed internet infrastructure to ensure that our teams stay connected and productive. This upgrade will facilitate faster data transfer, seamless video conferencing, and smoother overall operations.

WiFi 6: The Backbone of Connectivity Our new office will boast a robust WiFi 6 infrastructure, creating a wireless ecosystem that ensures connectivity across the premises.

This not only enhances the flexibility of our workspaces but also supports the integration of various smart devices, from farm sensors to mobile devices used by our field teams.

Cultivating Tomorrow, Today As we step into the year ahead, MRGA remains committed to embracing technology as a catalyst for growth in the agricultural sector.

The successful launch of our app and the upcoming state-of-the-art office emphasize our dedication to innovation, efficiency, and sustainability. Together, let’s cultivate a future where technology and agriculture harmonize to yield bountiful results.

Bryan Trosen, IT Manager

ER PORTAL

of your business activities with ease!

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1630 1st Ave S Casselton, ND 58012 701.347.4465