2018 UFC Fieldviews Summer_Issue 14

SUMMER 2018 EDITION

Local Princesses Advocate for Dairy Page 12

Growing UFC’s Farm Equipment Business

Dealership Opens at Hamburg

Page 4

Page 19

P E O P L E

•

P R I D E

•

P U R P O S E

The Evolving Business of UFC

C

hances are, as you read this edition of Fieldviews, you have just been through one of the more challenging springs in memory. But just like the generations before us, you and your cooperative came together and did what was needed to get the crop planted. This speaks of our collective commitment to feed the world.

We managed to get though the challenges of yet another spring—not only due to our commitment but also due to the constant evolution of cooperatives in agriculture. We’ve chosen “evolution” as a common theme in this issue of Fieldviews. We think it is a better way to look at things rather than saying “things continue to change.”

To me, change is an abrupt statement—as when we say we’re changing from the right-hand lane to the left-hand lane. Evolution, on the other hand, is more of a constant progression or marching forward, with the aspiration of always trying to improve on what we have always done. If we keep that in mind, it is sometimes less painful to understand why your cooperative continues to change and evolve as well.

Throughout this edition of Fieldviews, we’ll share examples of how your cooperative is evolving in our various business units to make sure we will be here to serve you for generations to come.

This constant evolution, multiplied by the complexity of our business, can be overwhelming. But as a cooperative, we bring all of our resources together to benefit you and do the best we can to smooth out the bumps in the road on this constant march of evolution.

We hope the stories we share here help to communicate to you that we have not lost focus. In fact, we continue to intensify our mission to serve you better, well into the future. ●

Have a safe summer,

Jeff Nielsen, President/CEO

Meet our 2018 Interns!

Cody Voight

Location: Winthrop Agronomy

Dylan Stein

Location: Winthrop Agronomy

Kaitlyn Bohning

Location: Winthrop Accounting

2 www.UFCmn.com

Matt Brinkman

Location: Brownton Agronomy

Noah Dent

Location: Winthrop Agronomy

Shyanne Rodning

Location: Winthrop Agronomy

Trevor Schroeder

Location: Winthrop Agronomy

United Farmers Cooperative’s internships are designed to give students an opportunity to complement their formal education with career-related experiences.

Gaining real world experiences also helps the students to make more informed career choices, which will result in higher job satisfaction and higher productivity.

We will start recruiting for our 2018 Internship Program this fall. If you or someone you know is interested, please email Jenny Krohn at jenny.krohn@ufcmn.com or call 507-647-6600 ext. 6703, or visit our website: www.UFCmn.com.

UFC DIRECTORY AgQuest Finance...... 507-647-6606 Ext. 6749 Bird Island Elevator. .................320-365-4012 Brownton Ag Service Center.....320-328-5211 Brownton Shuttle.....................320-328-4002 Cologne Feed Mill. ...................952-466-5518 Corporate Office.......................507-647-6600 Gaylord C-Store/Shop. .............507-237-2281 Gibbon C-Store.........................507-834-6615 Grain Marketing........................507-647-6601 Green Isle C-Store. ...................507-326-5866 Hamburg Ag Service Center.......952-467-3111 Hector Ag Service Center..........320-848-2296 Judson Ag Service Center..........507-947-3644 Klossner Elevator......................507-359-4519 Klossner Livestock Service Center...507-359-2970 Klossner Station. ......................507-232-5450 Lafayette Ag Service Center.......507-228-8224 Lafayette C-Store......................507-228-8364 Lafayette Elevator.....................507-228-8221

INSIDE THIS ISSUE: Growing Our Farm Equipment Business Is Tough. . . . . . . Page 4 UFC Looks Different Than It Did. . . . . . . . . . . . . . . . . . . . Page 7

Lafayette Seed Shed...................507-228-8669

Viewing Your Co-op as a Partner . . . . . . . . . . . . . . . . . . . Page 9

LeSueur. ....................................507-665-6421

It’s Time to Revisit Your Market Strategy. . . . . . . . . . . . Page 11

Litchfield Elevator.....................320-693-6040

More Than a Crown. . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 12

New Auburn C-Store.................320-864-2811

Planning for Success—in 2019 . . . . . . . . . . . . . . . . . . . . Page 14

New Germany C-Store...............952-353-2601 Norseland Ag Service Center. ...507-246-5300

How the Spring Went . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 15 You Are Appreciated at United Xpress . . . . . . . . . . . . . Page 17

UFC Farm Supply-Burnsville.......952-890-5296 UFC Farm Supply-Maple Plain....763-479-2123 UFC Farm Supply-Waconia.........952-442-2126

The Evolution of Farm Supply at Waconia. . . . . . . . . . . . Page 18 Farm Supply Opens Dealership in Hamburg. . . . . . . . . . Page 19

Waconia Energy Office. ............952-442-2126

Behind the Scenes at UFC Feed . . . . . . . . . . . . . . . . . . . Page 21

Winthrop C-Store. ....................507-647-5931

AgQuest . . . People, Products & Places. . . . . . . . . . . . . Page 22

Winthrop Chemical Warehouse...507-647-6615

Customer Appreciation . . . . . . . . . . . . . . . . . . . . . . . . . . Page 24

Winthrop Elevator.....................507-647-5311 Winthrop Energy Office. ...........507-647-6602

3 ©2018 United Farmers Cooperative. All Rights Reserved.

GROWING OUR FARM EQUIPMENT

BUT WE’RE COMMITTED

By Jeff Nielsen, President/CEO

The first six months of this calendar year have proven once again that we are not really in charge of the world in which we live and work. We are driven by forces of nature much stronger than any of us have the ability to predict or control.

F

rom a long cold winter to a brutal April, with one of the latest ice-outs anyone can remember—we Minnesotans endured it all.

That’s what we do. It’s what we’ve always done and what we will continue to do in our collective commitment to providing jobs, keeping our communities alive and thriving and feeding the world.

This summer, you are seeing more and more changes at UFC. We’re on a constant quest to adapt to an everchanging marketplace that has instant access to information and thrives on chaos.

Throughout this edition of Fieldviews, you’ll read how we are making adjustments to markets like Waconia and to our farm equipment business. You’ll learn how we have to reinvent ourselves in some of our core businesses, and how what was old has become new again. For instance, we’re beginning to explore the next steps in growing our already highly successful feed manufacturing business.

For me, the subject of feed manufacturing is very familiar.

It seems like only yesterday that a young feed division manager (me) helped host the opening of our newest mill at Klossner. That was the fall of 1995. As I grow older, and hopefully wiser, I never cease to be amazed at how fast

Below, our equipment sales and technician team members attend a training at our Judson location.

4 www.UFCmn.com

BUSINESS IS

TOUGH

time does fly and how we can never sit complacently by and think we have arrived. The world simply will not let us sit still—nor should it.

The journey intensifies As our long-term patrons know, UFC has evolved at an incredible rate over the past 20 years. Almost nothing looks the same in our grain, feed and agronomy divisions as it did back then. But then, our patrons and their businesses have changed as well.

After a challenging spring, we are all grateful for the investments we made in modern agronomy plants with large capacities, and technology that allows us to do the best we can in perhaps the worst conditions we’ve ever seen.

This is just one example where we did the right thing and stuck to a plan, even when the nay-sayers ask scornfully, “What are those people doing now?”

Believe me, in my 20+ years here, I’ve never had as many questions as they’re asking now.

“Why the heck are you making such a strong commitment to the farm equipment and grain construction business?” The short answer is, “Because someone has to do it, and it might as well be your cooperative.”

We all know it does no good to plant and grow the best crop if you don’t have a way to harvest, handle and store it. More to the point, it can’t get planted in the first place if someone is not there to service the planters and deal with the technology that is becoming a way of life in the fields across our territory.

On the other hand, I think I speak for the entire board and leadership team at UFC when I say this journey of getting the farm equipment business scaled properly and efficiently has been an extremely complex challenge. For example, in the fertilizer business, for the most part, you deal with NPK along with a few micronutrients. In the grain business, you have corn and soybeans. In the farm equipment business, you deal with tens of thousands of parts. The same information systems and technologies that serve us well in fertilizer are hopelessly inadequate to deal with the complexity of a farm equipment business.

One of the massive challenges we are now finally getting under control is managing all this information

We know the equipment you buy and the systems you build are important to you.

Your investment into your farm isn’t just another project to UFC. We love being part of the experience and learning more about our customers all the way. Top photo: UFC employee Ben Forst teaches a young boy about pouring a cement bin pad. Bottom photo: A crane is in action at a UFC grain system construction site.

(continued next page) 5

(continued from previous page) on a timely basis, so we have the right inventory in the right place at the right time. We need to be able to deliver information to our customers in a form that makes sense. We apologize for the occasional frustration of doing business with UFC while we work through this. But we are committed to getting it right—and we will.

Of course, getting the information right and the processes dialed in happens behind the scenes. In front of our customers, we have had to make difficult decisions about which locations would be best suited for the farm supply business. We have moved people around to put them in the best positions to serve you, and we continue to make investments in facilities, tooling and staff to make sure we can be the best at this business.

We hope that, as our patrons, you will see this commitment pay off as a valuable part of the business

Left to right: Jeff Nielsen, 40 Square Secretary/Treasurer; Representative Jeremy Munson; Char Vrieze, 40 Square Executive Director; and Representative Tim Miller. Representative Miller, who authored the legislation to allow for health plan cooperatives in Minnesota, was a guest speaker at the 1st Annual Meeting of 40 Square Cooperative Solutions.

you own, just like the major investments we’ve made together in the past in feed mills, fertilizer plants and grain facilities.

Yes, UFC Farm Supply with all its equipment, technologies and product lines, is a bit complex.

But we are convinced that our commitment A young lad excited to get a Massey to this business is Ferguson tractor “just like grandpa’s.” necessary and that, over time, this will be as important a part of the diversification of your cooperative as our other core businesses.

One of the greatest things about being a cooperative is we have the opportunity to listen to you, our patrons, because you own the company. UFC takes pride in not always taking the easy way out, but rather we will roll up our sleeves and try to figure things out even when other folks give up. One small example of this is the growing success of our 40-Square Cooperative Solutions, which garnered twice the enrollment we expected for the first year offering health insurance to Minnesota farmers.

As cooperative employees and owners, we’ve never shirked the hard work of tackling complex problems—like affordable health insurance. The farm equipment business is no different. ●

LOOKS MIGHTY EASY “FARMING WHEN YOUR PLOW IS A PENCIL

& FROM A CORN FIELD” YOU’RE A THOUSAND MILES

— DWIGHT D. EISENHOWER 6 www.UFCmn.com

UFC Looks DIFFERENT Than It Did and Different Than It Will

By Kevin Lauwagie, UFC Board Chairman

I

mentioned in the last edition of Fieldviews that your board of directors is redefining the role of its associate board with an emphasis on gathering input for key decisions and cultivating future leadership.

Since the Spring 2018 issue, your board has interviewed 10 highly recommended members spread geographically throughout our market area, for the purpose of selecting an associate board that will have increased interaction with the elected board.

We presented a great deal of information about United Farmers Cooperative to these 10 individuals, as well as asking them a series of questions about how they see UFC today and in the future, and why they would like to be a part of an associate board.

It was a tough decision because any one of the candidates would have been a good choice, but in the end the elected board chose three candidates as associate board members who will hopefully lead this member-owned organization into the future: • Jacob Rieke • Ryan Mackenthun • Philip Clark

Jacob, who farms near Fairfax, will represent UFC’s southwest trade territory; Ryan, who farms near Brownton, will represent our northwest trade territory; and Philip Clark, who farms at Norwood will represent our northeast trade territory.

These individual members will function as a sounding board.

Our hope is that each will evolve into a potential candidate for eventual election to the board of directors. We expect these associate board members to be involved in quarterly meetings, some board retreats, and to perhaps attend CHS or Land O’Lakes annual and young producer meetings.

Your cooperative evolves The role of an elected director has changed significantly since I joined the board 21 years ago.

Back then, we discussed ordering truck tires. Today, we debate broader decisions, like building the Brownton grain and agronomy hub to add speed, efficiency and value to our members.

Not only are we concerned with the profitability of our members, but with the health of our communities.

In recent years, the UFC board has contributed to the purchase of at least 10 grain bin rescue tubes for local fire departments. This year, we saw a life saved with the help of that contribution.

Now we’re entering the farm equipment business on a larger, more-active scale. The UFC board recently toured AGCO’s manufacturing facility in Jackson, Minn.

It was an impressive tour from the standpoint that AGCO manufactures different makes and models of tractors on the same assembly line, in a clean environment where

The UFC board tours AGCO’s tractor manufacturing facility at Jackson, MN. you could almost eat your dinner off the floor. The tour helped reinforce our decision to be a part of the AGCO distribution system.

Being from Winthrop, which lost its John Deere dealership, I am more convinced than ever that our members deserve better than having to drive 30-40 miles for parts, as is true of some areas of the upper Midwest.

Please be patient as we wrestle with issues necessary to enter and succeed in the farm equipment business.

Your directors firmly believe this is in the best long-term interest of UFC’s owners: you. ●

7

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Viewing Your Co-op as a Partner

By Mitch Altermatt, Chief Operating Officer

C

ooperatives were created by farmers to collaboratively work toward achieving common goals. In some cases, that meant pooling grain for better pricing or buying bulk agronomy products to achieve more negotiating power. 100 years ago, there was a cooperative for individual services. However, times have changed, and rural America has become the starting line for a global agricultural market. In order to compete in this global market, cooperatives have had to do as they were intended—cooperate.

Business expenses are on the rise, farms are not getting any smaller and planting and harvesting seasons continue to condense. The global market demands it.

Your needs as producers often eclipse the abilities of the cooperative system to serve you, which unfortunately means that you seek service outside the system.

Partnerships have proven to be a successful venture for many cooperatives occupying a similar marketplace.

While some view potential industry partners as competitors (because they occupy the same “space”), your cooperative views partnerships as a way to keep our cooperative system strong and competitive. The system was founded on the principle that farmers are stronger together than they are apart. I believe the same can be said for retail cooperatives.

Fundamentals of strategic partnerships There are many aspects to finding, vetting and forming a partnership. Over the years, your cooperative has been a part of many successful partnerships and failed discussions.

From those experiences, establishing these fundamentals is key to forming a lasting partnership: • Expectations: Clear expectations must be established at the beginning of partnerships, and reviewed and amended as time passes and insights are learned.

Expectations around profitability, accountability and serviceability need to be understood and met for partnerships to be valuable to all parties.

• Skin: Each party needs to have “skin in the game.”

Without a shared motivation or purpose, it is easy for partners to lose sight of the goals originally established.

In partnerships, “skin” translates into shared time, money and resources. These factors don’t always have to be equally shared between partners, but each partner must have enough “skin” invested to prove that they are dedicated to the goals of the partnership.

• Transparency: The importance of frequent and transparent communication cannot be understated when working with partners. Understanding our partners’ and our common needs and frustrations allows us to operate more efficiently, quickly resolve disputes and fully benefit from the partnership.

Risks in strategic partnerships Being aware of some of the pitfalls of potential partners can save time, money, resources and headaches down the road. Some of the risks we discuss when vetting a partner include: • Small mindset: Partnerships are usually formed for a very specific purpose, i.e. building an agronomy plant, sharing equipment, expanding intellectual capital. However, partnerships sometimes fail because they are so focused on solving one specific problem they miss out on opportunities to solve a bigger, more profitable problem.

• One-sided: Partnerships have to be win-win for all parties involved or they just simply aren’t very good partnerships. When the fundamentals of expectations and transparency are not achieved, it is easy for

(continued next page) 9

(continued from previous page) partnerships to become one-sided or for one partner to take advantage of the other. These situations are obviously difficult, inefficient, and ruin what could be a successful venture.

• Different cultures: While partners are legally different entities, the partnership must still share a similar culture. At the end of the day, in any business, the people make things happen. When those people work with conflicting values, differing incentives, or opposing ethics—all foundations of a company’s culture—cracks form in the partnership and eventually lead to its failure.

exist to share our successes in the form of patronage with you. When your cooperative isn’t successful, your operation and community can feel it. And when we don’t invest in you, our patrons, our partnership fails.

The cooperative system is changing. Your farming operation is changing. The global marketplace has driven so many factors out of our control that it is, for lack of a better word, scary. But, having learned from experience, it is much better to approach that uncertainty with a partner who always has your back, who has shared “skin” in the game, and who believes in the future you desire to achieve for your operation. ●

These fundamentals and risks are constantly being discussed and reviewed in our board room and with our strategic partners. When we run into issues, we work to fix them. When we experience successes, it is shared between all partners. But these fundamentals and risks don’t only apply to our cooperative partners; they also apply to our relationship with you, our patrons.

We see you as a strategic partner. We believe our relationship should be win-win and that we should establish transparent expectations and communicate about them frequently. Plain and simple: when you succeed, our partnership succeeds; when your business is hurting, the partnership can feel it; when you don’t invest in your cooperative, the partnership suffers, and vice versa. We

T ra n s p a re n

cy

Clear Expectations Shared Motivation

Make every acre your best acre.

Variety is the key to managing variability.

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Cyan

11/18/15 4:01 PM

It’s Time to Revisit Your Marketing Strategy

By UFC Grain Originators

W

ith a majority of spring and early summer field work complete, it is historically a good time to revisit your marketing strategy for any unpriced old crop and/ or new crop bushels. Looking back at the USDA’s March Prospective Planting report, the marketplace shifted and gained a little steam with predicted lower acreage numbers on both corn and soybeans.

In comparison to the last couple years, the corn upswing and stronger local basis levels have provided producers an early pricing opportunity on a portion of their bushels. Will this futures rally and basis movement be sustainable? That is the million-dollar question. Much of the local basis strength this year can be attributed to the fact that the PNW (Pacific Northwest) market has had great corn demand for export. The demand from this market has propped up local basis in the range of 10 to 15 cents per bushel. This is one the benefits of having a shuttle loader with access to the major rail lines. Local basis should remain firm through much of the summer months with trains continuing to head west, which is something that hasn’t happened in the last few years.

The topic of the futures market can get a little more unpredictable. We have compiled a few interesting

Tony Martens

Darrel Abrahamson

Brett Annexstad

Matt Rettmann

reminders when assessing the timing of the high in December corn futures during June, July, and August: • In 7 out of the past 10 years the CZ “Summer” Highs have been established in June or July (see chart). Of those 7, the latest date for a high being established during those years was July 14, 2015

•

Since 2012, only one time has the Money (funds) increased their long position during the month of August and that was during 2012

•

Since 2014, the highest CZ has traded during Jun/ Jul was $4.58 ¼, which occurred on June 6, 2014.

The 2nd highest was on June 14, 2015 at $4.54 ¼

If you have any questions on any of these topics please contact your grain origination team—Anthony Martens, Brett Annexstad, Darrell Abrahamson and Matt Rettmann—at 507-647-6601. Have a safe and enjoyable summer! ●

December Highs During June/July/Aug 2008-2017

2017 2016 2015 2014 2013 2012 2011 2010 2009 2008

JUNE

JULY

AUG

$4.0900 $4.4900 $4.3225 $4.5825 $5.7300 $6.5450 $7.2050 $3.8650 $4.7300 $7.9600

$4.1725 $3.8000 $4.5425 $4.2250 $5.2750 $8.1750 $7.0300 $4.0975 $3.7350 $7.8250

$3.8900 $3.4425 $4.0200 $3.8050 $5.0800 $8.4000 $7.7700 $4.4500 $3.7525 $6.2500

DATES 6/8, 7/11, 8/10 6/17, 7/14, 8/19 6/30, 7/14, 8/10 6/6, 7/1, 8/18 6/3, 7/11, 8/26 6/29, 7/30, 8/21 6/9, 7/19, 8/30 6/21, 7/15, 8/30 6/2, 7/1, 8/3 6/27, 7/3, 8/21

11

More Than a Crown: Advocating for our Dairy

By Jennifer Wendinger, UFC Community Relations Coordinator

J

une is National Dairy Month. While this month is always a favorite to celebrate with tasty and nutritious dairy treats, this year it is more important than ever to celebrate and support our dairy communities.

Our friends and neighbors in the dairy industry are working through some tough times with low milk prices. Between Minnesota and Wisconsin, the industry is averaging a loss of about 15 dairy farms a week. Although it’s a hard thing for the agriculture community to experience and see, I am amazed by the resilience and pride these dairy farmers continue to show everyday through their dedication to their animals, families and employees.

The dairy community does a tremendous job telling its story and advocating for its industry. Our Minnesota dairy industry has strong spokesperson programs, exemplified by county Dairy Ambassadors and Dairy Princesses and, at the state level, by Princess Kay of the Milky Way. UFC was thrilled to be connected to three of the twelve finalists in this year’s Princess program. These finalists were chosen to share their stories, work with and advocate for their local dairy farms, and connect with consumers to discuss the importance of dairy to their health and to the economy.

Let’s learn more about these girls behind the sashes and under the crown, and why they choose to advocate for an industry near and dear to them.

Emily Annexstad – 20, St. Peter, MN 64th Princess Kay of the Milky Way Emily just completed her sophomore year at the University of Minnesota for Animal Science and Agricultural Communications and Marketing. She is the daughter of Rolf and Jean Annexstad.

Anna Broll – 20, Chaska, MN 2018 Princess Kay Finalist Anna just completed her sophomore year at the University of Wisconsin–River Falls for Biomedical Sciences. She is the daughter of Dan and Kathie Broll.

Samantha Traxler – 19, Cleveland, MN 2018 Princess Kay Finalist Samantha Traxler just completed her sophomore year at the University of Wisconsin–River Falls for Animal Science. She is the daughter of Patty and Brian Pettis.

12 www.UFCmn.com

Q: How did you get involved in the dairy industry?

Emily: I grew up on my family’s third-generation dairy farm and was involved from a very young age working with my family to care for our cows. Along with on-the-farm experience, the 4-H dairy project opened my eyes to the opportunities the dairy industry offers. Through 4-H, I was able to show cows, give livestock demonstrations and be a member of the dairy quiz bowl and dairy jeopardy teams.

Currently in college, I am a member of both the Minnesota Junior Holstein, and the Gopher Dairy Club and Dairy Judging Team.

Anna: I was born and raised on a dairy farm and discovered very early in life that I love animals. Maybe it’s odd to hear that a child likes to do chores, but I really enjoyed helping and I formed a bond with each animal individually. As I grew older, I became more fascinated with how dairy affects our health. Once I learned how pure and nutritious dairy products are, I knew I wanted to share the news with people.

Samantha: Growing up, I did not live on a dairy farm, but was introduced to the industry when my mom started a position managing a large jersey cow farm in 2002. I spent much of my time off from school at the farm with her.

When I started in 4-H, I worked unpaid summers at the dairy, training my cows and helping my mom in any way I could. While working there, I learned so much but, most importantly, I found my passion for the dairy community.

Q: What about the dairy industry ignited a passion in you to become an advocate for the dairy industry?

Emily: No matter what I have done or where I have gone within the dairy community, I have always felt welcome. The hard working, genuine people and welcoming atmosphere in the dairy community is what inspired me to become a dairy princess. I am proud to be a part of a community that works 365 days a year to provide for you and your family.

Anna: One specific moment really made me realize my passion. When I was in Norway as a Rotary exchange student, a classmate shared a video on social media about animal cruelty. I was shocked that they thought this was normal of the industry. I couldn’t shake the need to say something to both educate this classmate and share the truth of the dairy industry. This is when I realized how important it is to spread the news and share my experiences growing up on a dairy farm and the diligence we have in feeding and caring for our animals.

Samantha: I love talking about my cows. I’ve wanted to inform people about the amazing community ever since my first county fair when people would stop and ask me questions. As I grew older, that platform grew bigger and my message became clearer. Nothing makes me happier than knowing my cows are happy and well taken care of.

Community Q: What life lessons or skills have you been taught by being part of the dairy community?

Emily: It has taught me to work until a job is done completely and correctly. You can’t quit milking for the night just because there are other things to do, it is a commitment. I have also learned to go with the flow, and to keep a positive attitude. Oftentimes, things do not go as planned on the farm. However, with some flexibility and a smile, even an unpleasant situation can turn out okay.

Anna: My parents have demonstrated so much through their work on our farm. They taught me responsibility, perseverance and determination. I was given simple chores at the age of five. No matter what the weather was like or what else we had to do, we went out and cared for our animals.

They taught me the meaning of hard work, compassion and empathy, and to never give up on my dreams.

Samantha: I have learned responsibility, timeliness, hard work, communication and, most importantly, selflessness.

Every day the cows—my girls—need to be fed, milked, kept clean and healthy. My mother taught me their needs come first. When we provide for them, they provide for us in return. Our cows are the reason we have such a wonderful product and such a supportive community.

Q: What is one of your favorite memories of working and showing cows?

Emily: Showing cows for 4-H and at the State Fair led to many lifelong friendships and memories. I will always treasure the time I spent washing cows at the wash rack, hanging out in the tack area and showing in the Coliseum. At my first State Fair as a 4-H’er, I saw my first Princess Kay coronation.

Anna: I had a cow named Friendly and she was very correctly named. She used to lick and rub her head up against me while I milked. She let me lay my head on her when it was cold. In the winter time, I became her blanket and she was my space heater. She had such a comforting personality and I truly loved her!

Samantha: I had a very timid 3-year-old Holstein cow named Fantasy. I was nervous about taking her to the State Fair as a full-grown milk cow because I didn’t want all the people to overwhelm her. To calm her nerves, I would take naps with her throughout the day. I would tuck myself into her cheek below her neck and sleep. Even though she was over 1,500 pounds, I was never nervous because she would always gently rock to wake me before she would get up.

(continued next page)

(continued from previous page) Q: What are some ways we can support the dairy industry during this tough time?

Emily: Supporting dairy farmers can be as simple as buying an extra gallon or two of milk or ice cream at the store.

Choose real dairy over dairy alternatives and cook with dairy foods to support the dairy community. Additionally, if you have questions or concerns, reach out to your local dairy community. Many farmers are willing to give tours and are eager to answer questions.

Anna: As consumers, continue to buy our products like milk, cheese, butter and yogurt. As farmers, we can continue to support each other and advocate for the lifestyles we love. We can invite people to our farms to see firsthand how we care for our land and animals. Dairy is one of the purest forms of nutrients from one of the oldest professions. It is as beneficial today as it was 1,000 years ago. I think we need to remind people of that.

Samantha: A good way to support the dairy community is through buying dairy products. Adding more cheese to meals, having chocolate milk after a workout, or even having milk and cereal every morning can really help the markets. ●

Above: Emily Annexstad poses next to her butter head. At right: Samantha Traxler poses next to Firefly. Below: Anna Broll works on the farm.

Planning for Success—in 2019

By Ryan Ponwith, Agronomy Sales Manager As you read this, we are in the heart of the 2018 growing season. Is it too soon to plan for 2019? Too soon to start making management decisions? Too soon to think about forward contracting 2019 grain? Too soon to begin committing to your 2019 needs?

Did you know that, as our team of employees were out making crop nutrient applications in your fields this spring, the UFC agronomy division was working diligently on plans to deliver the greatest value to you, our patrons in 2019.

To arrive at the value of anything we do for you, take “what you paid for” a product or service and divide it by “what you received.” Bringing value to you may mean many things, depending on the operation. It may mean something as simple as delivering your fertilizer on time, it may mean having the supply of the crop protection product on hand when you need it or it may mean having a UFC on-farm specialist assist you in planning for success.

How can we help you plan for success in 2019? It’s as simple as 1, 2, 3.

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1. First, set an appointment with your UFC Field Sales Agronomist to discuss what your projected needs are for the next growing season.

Gathering this information allows UFC to plan its purchases more effectively to enable us to bring you as competitive a price as possible.

2. Next, set a goal for your operation with your Field Sales Agronomist (FSA). This may be something as simple as increasing your average yield by 5% or increasing your ROI by 3%. Having this discussion allows your field sales agronomist to formulate a plan best suited for your needs.

3. Then, you can discuss the plan together and manage it from there.

The best way to set yourself up for success in 2019 is to start the plan now. If you haven’t been contacted already, call your Field Sales Agronomist today to begin planning for a successful 2019! ●

How the Spring Went

By Dave Eckhoff, Vice President of Agronomy United Farmers Cooperative (UFC) now has two agronomy hub plants operating at full capacity. This spring, with Brownton and Winthrop in place, we did what we said we would do. The additional storage allowed us to buy your agricultural inputs when we could mitigate logistic risk, and the faster handling equipment increased the speed at which we served you.

Over this past year, UFC has made many other changes to evolve into the organization you need and expect of us in 2018 and going forward.

Our Waconia agronomy plant is transitioning to a seasonal facility (see Greg Peton’s story on page 18).

Hamburg was built to take on the agricultural role Waconia has played for farmers in our eastern and northern market area. Our Waconia store still has retail presence, but we will handle the agronomy sales dispatching, delivery and customer interaction at our new Hamburg Ag Service Center, located along State Highway 5 or on your farm.

NOTE: Your farm is where you have told us you prefer to do business, so expect to see more of our Field Sales Agronomists and other UFC support personnel come to you rather than you come to us.

We’ve taken a hard look at our crop protection policies to ensure we are in compliance with the state of Minnesota. This decision was taken after undergoing the Xtend® Crop System training and reviewing the restricted use pesticide (RUP) regulations which have been put in place by state agencies. After examining the risk in dealing with these chemistries, we have put these policies in place to follow the label and the law in handling, applying and selling all products.

We’ve launched a new dispatch program. We’re using the EDGE platform for both order creation from the sales

staff and dispatching from our ag service centers and hub plants. The spring of 2018 was our first season with it and we learned a lot about how to effectively use our new system and strengthen our ability to serve you. NOTE: The EDGE software system will be used for planning with your Field Sales Agronomist for dispatching and application of products to your land.

The biggest change at UFC has to do with personnel.

We’re adding and making changes to our staff every year.

The industry we serve brings inevitable change in people’s role. We need to offer the very best talent to serve you, the customer. In the process of moving from operations to sales and from tender truck to floater, to sprayer and to dispatch – these employees become more valuable to us and to you. That’s evolution.

Well, spring is over. Take a look back. This was the first full year the Brownton Agronomy Hub operated at 100% capacity. In combination with the Winthrop hub, our outlying Ag Service Centers were able to utilize these new facilities to deliver timely products to your farm. We had a very compressed spring during which you planted your crop at high velocity, with the assistance of your cooperative partner.

The speed and space promised to you in recent years have now been a reality for the past 12 months. How do you like it? ●

UFC custom applicator, Kurt Weikle, uses the new EDGE software to give him turn by turn navigation directions to his next field.

Customer testimonials I have built a great relationship with my FSA. He is very knowledgeable and an asset to my operation. In addition, they have backed up that knowledge with great service and price. This spring they kept up with all my 32% UAN needs and I never had any downtime spent waiting for product.

- Brian Ryberg Working with UFC has been a great experience. I work with Chad, my FSA, very regularly throughout the year.

He is part of everything from soil sampling and seed, to fertilizer, scouting and crop protection. He is very knowledgeable and always stays one step in front of the plan. The service that follows is always prompt and well done.

- Rob Schultz

During fertilizer season, I work closely with the dispatch facility in Winthrop for deliveries of dry fertilizer to our fields. UFC’s people are well-organized, efficient, friendly, and always thinking ahead to keep deliveries moving quickly and keep us productive.

- Peter Anthony I choose to work with UFC because of the great service I get. My relationship with my FSA has led to great success in our operation because of our strong communication and advanced planning. Even though we faced difficult spring conditions, it went off without a hitch for us because of the detailed planning and communication plan we had with UFC. I want to thank the whole agronomy team for their great service and hard work this spring.

- Monty Hulke

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You Are Appreciated at United Xpress

By Dale Jutz, Winthrop C-Store Manager/C-Store Coordinator

I

love my job. No two days are alike.

Every day is like a new chapter in a book. Something happens that has never happened before.

What do I do? I manage the United Xpress C-Store at Winthrop, one of seven C-Stores in our cooperative system.

And now we’re entering the summer driving season, when we’ll be supplying gas and food to all the families heading out for their vacations, as well as all the truckers traveling east and west on Highway 19. This past winter, I spent time putting the locations of each United Xpress C-Store in a statewide travel database, so they’ll pop up whenever you travel toward us.

Our C-Stores at Gaylord, Gibbon, Green Isle, Lafayette, New Auburn, New Germany, and Winthrop are all different. Each takes on the personality of its community.

For instance, you’ll find a larger selection of groceries at Lafayette, Gibbon, Green Isle, New Auburn and New Germany because there are no grocery stores. Several of these stores sell meat from local butcher shops.

If you need a tire changed or have a problem with your engine, there’s a full-service shop attached to our Gaylord C-Store. Lafayette has a flat grill and can make its own hamburgers.

New Germany sells fishing licenses,

and Winthrop has E85 gasoline for sale at the pumps.

Regardless of what United Xpress C-Store you visit, we all have good deli and extensive food choices.

When I started 20 years ago at the Lafayette store, most foods were fried. Today, we’re offering healthy choices, too. We’re informing customers of the calories and weights of the foods we prepare.

Work at the United Xpress C-Stores has also changed. We used to spend a lot of time pricing the items inside the store. Now, those prices are on the items when they arrive at the store. We scan barcodes at the counter and we’re done. That leaves us more time to spend with our customers and less time fiddling with the merchandise.

Today, we grab our customers as they come in the door and let them know how much we appreciate them and thank them for their

business. When we train new employees, we tell them, “The people who come in the door of the C-Store are your bosses…so treat them nice.”

Working at the C-Store is not boring for me. It’s fast changing and amazing to see the diversity of the people who come in the door, and to see them grow. I really like it. That’s why I still enjoy what I do after 20 years working at the cooperative.

See you on the road! ●

Filling diesel at the pump.

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The Evolution of Farm Supply at Waconia

By Greg Peton, Chief Marketing Officer

“Survival of the Fittest” is a commonly used phrase originating from Darwin’s Theory of Evolution. It describes the biological process of natural selection by which the strongest living things survive.

I

n business, “Survival of the Fittest” can also refer to certain strategies a business employs to ensure its longevity in the marketplace.

The evolution of UFC’s Waconia location is a good example. In 1962, when Waconia Farm Supply moved to its present location, the city boasted 2,100 people and production agriculture was king.

In the years that followed, farm machinery, and lawn and garden equipment sales increased. In 1987, the co-op expanded its shop area and its feed warehouse. In 1988, construction began on a fertilizer plant that would provide more complete agronomy services at competitive prices. That same year, a refined fuel plant was added to the business.

LP storage was moved to its present location on the south end of the property in 1991, and another 30,000-gallon storage tank was installed, as the co-op’s service area expanded. At that point, Waconia’s population of 3,500 people was on the cusp of significant growth that continues today.

In 2013, UFC assumed ownership of the business. By 2016, Waconia’s

population ballooned to nearly 12,000 people—six times what it was in 1962. Currently, over 60% of Waconia’s residents are employed in healthcare, manufacturing, retail, education, finance and professional careers. This shift in employment trends has resulted in less revenue for the Waconia location resulting from production agriculture and more revenue being associated with patrons desiring environmentally friendly, sustainable products and services for urban and rural acreage properties.

As we watch the population grow and the demographics continue to change, our business at Waconia must evolve. In the best interest of our patrons and the community, we’ve decided not to operate large equipment or handle raw chemicals, liquid fertilizers, refined fuels or LP in this consumer retail space.

Effective this spring, we will operate Waconia’s dry fertilizer plant on a seasonal basis. All bulk tanks storing agricultural chemicals and liquid fertilizer will be moved to Hamburg or other UFC locations. Furthermore, we will dispatch all application equipment out of our Hamburg, Winthrop or Brownton agronomy facilities.

The underground fuel tanks were removed from our Waconia location and bulk fuels will be stored and delivered from our New Germany location.

Because the cost to bring them up to regulatory standards is too great, the underground fuel tanks were removed from Waconia. Bulk fuels will continue to be stored and delivered from our New Germany location.

We’re working to relocate our LP tanks outside the city of Waconia, to be accessible to our customers and, at the same time, move a hazardous product out of a high population area.

Our energy team at Waconia will use the former agronomy offices and heated storage to conduct its business.

Going forward, our Waconia facility will focus on the predominant urban and rural lifestyle markets. By refocusing our offerings, we expect to do an excellent job of delivering specific products and brands that best serve patrons doing business at this UFC location.

If you have questions, please call me at 507-647-6606 ext. 6772. ●

UFC Farm Supply, 2017.

Inset: Waconia Farm Supply, 1981.

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Farm Supply Opens Dealership in Hamburg

By Dan Sawatske, Vice President of UFC Farm Supply

A

pril 2 marked the opening of a new ag equipment dealership at existing UFC facilities in Hamburg, MN. Over the winter, a decision was made to move farm equipment previously sold and serviced in Waconia to a more convenient location—one that better serves farmers in UFC’s northern trade area.

The 9,600 square foot facility is shared with UFC’s feed and agronomy business units. Located on Minnesota 5/25 just south of the Carver-Sibley County line, the 24-acre site is easy to find, and is better suited to handle traffic associated with moving tractors, planters and tillage equipment.

Hamburg is a full-service dealership offering these complete lines: • AGCO - Massy Ferguson® tractors and combines, Gleaner combines, White planters, and Sunflower tillage • Vermeer - hay and forage • Versatile - tractors, application equipment and tillage • Gehl - skid loaders, compact track loaders, articulated loaders and mini excavators • Kuhn Knight - TMR mixers and manure spreaders • Kuhn Krause - tillage • J&M - grain carts and gravity wagons • Meyer Manufacturing - forage wagons and spreaders

• • • • • •

Meyer’s - manure spreaders Westfield - grain augers Salford - tillage Woods - mowers and cutters Parker - grain carts, wagons and seed tenders Brillion / Landoll - seeding and tillage

The UFC equipment team in Hamburg is, from left to right, David Herrmann, Dan Brinkmann, Judy Waldvogel, Kaden Donnay, Scott Maynard, and Steve Muehlenhardt.

Most importantly, we’ve staffed Hamburg with experienced and qualified personnel. The staff includes Steve Muehlenhardt as parts manager, David Herrmann as a working shop foreman, with Kaden Donnay and Luke Silseth providing parts and service support.

In sales, Scott Maynard handles the sales and location manager responsibilities for equipment. Dan Brinkman and Bob Dressen serve as outside sales representatives. Judy Waldvogel rounds out the team handling accounting and finance functions.

The team, with a combined 120 years of industry experience, is ready to meet the needs of area customers.

Combining our legacy Lafayette location with Judson farm equipment (added in late 2016) and now the Hamburg facility, UFC can serve patrons with quality farm equipment, parts and service across its footprint. Pay us a visit. We’re here to help. ●

Hamburg parts manager Steve Muehlenhardt operates verticle parts elevator.

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Contact your UFC representative for more information about adding Hydro-Lac to your summer feeding program!

800.422.3649 • www.formafeed.com

Behind the Scenes at UFC Feed

T

Kelly feed each and every Powell day. We cannot haul feed that is not made nor can we continue to make feed if no one is hauling it away. On an average day, UFC manufactures and ships about 50 truckloads of bulk or bagged feed from our mills at Cologne, Klossner and Le Sueur. Many of these loads go to multiple bins or farms, while the trucks drive a combined 2,000 miles daily. Animals eat 24/7.

Throw in bad weather or a holiday, and there are days when the number of loads and miles go well beyond that.

Feed operations and delivery personnel need to be prepared to deal with those days, and that is where they appreciate the cooperation mentioned above. These employees often come in early or stay late if they anticipate bad Feed operations in Klossner mixes a custom blend ration to roads or a big delivery be loaded for delivery. day ahead or after a holiday. They are in fast-paced jobs and and equipment moved before we no day is finished until the last load is arrived was a huge help and greatly manufactured and delivered. appreciated by our drivers. It makes Regulations also require the everything go smoother and allows completion of a sizable amount of daily us to make sure every patron’s feed paperwork to be finished every day for needs are taken care of before we call office staff, production and deliveries. it a day. Planning ahead always works The professionalism of our employees, out better than just reacting to the both in the plant and on the road, is situation when it arrives. truly a big part of the continued growth We also want to recognize the of UFC’s feed business. people who really get this work done—

the people who make and deliver the he prolonged winter and the challenges with snow and bad weather are just a memory. I want to take the time to recognize and thank our patrons for their cooperation during this year’s extended winter season. You called in your feed orders early, and that is one of the best ways to help the production staff stay ahead. Having the snow

Kim Hague

Leon Wenninger

Steve LeBrun

We also want to recognize our valued partners who deliver our ingredients into the mills. After the corn is received, we typically receive about 20 shipments of other feed ingredients each day into UFC’s mills. Without their dedication in all kinds of weather and sitting in lines to pick up our loads of ingredients all through the year, it would not be possible to provide you with the service you expect from us.

The goal is to deliver a quality product, on time, and in a costeffective manner to add value to our patrons’ livestock operations. All of us in the feed department thank you for giving us the opportunity to work with you. If you currently don’t work with UFC on your feed needs, we always appreciate having the opportunity to visit and tell you more about what we can do for you and your livestock. ●

Roger Landon, UFC nutrition and management consultant, works with dairy farmers Mike and Rolf Annextad of Annextad Dairy.

21

AgQuest . . . People, Products & Places

By Vince Sloot, AgQuest Business Relationships Manager/Crop Insurance Specialist

People Together, AgQuest and UFC are pleased to announce the addition of Derek Skala as a Business Relationship Manager (BRM) serving UFC patrons. Derek joined the AgQuest/UFC team, alongside Vince Sloot and Dawn Wickenhauser, on April 30. He is based out of the Winthrop office.

Derek will be relocating to the area from his hometown of Owatonna. He has worked for several years in both insurance and banking, holding a degree in Business Management with a minor in Finance/Real Estate from St. Cloud State. Derek has roots in agriculture having grown up on a farm and has a good understanding of the needs of our customers. We are excited to have him join the team and to acquaint himself with the patrons of UFC. Welcome to the team, Derek!

Products When you think about AgQuest, the first thing that comes to mind is probably producer financing and crop insurance but did you know that AgQuest also has Property and Casualty Insurance? AgQuest provides property and casualty insurance through several different carriers, which cover personal, agri-business and commercial. Our P&C coverage is open to any consumer, meaning you don’t have to be an ag producer nor a voting member of UFC. You are welcome to visit with any of our agents to discuss your specific needs. While you are at it, don’t forget to tell your friends, relatives and neighbors.

The AgQuest line of property and casualty insurance includes: Farm/Commercial • Package Policies • Farm Liability • Commercial Auto • Inland Marine • Excess Liability/Umbrella • Workers Compensation Auto Insurance • Personal Auto • Classic Collectors Auto/Antique • Motorcycle/Scooter • ATV/Snowmobile • Motor Home/RV • Boat/PWC Property Insurance • Homeowners (primary and secondary residences) • Condo/Townhome • Renters • Landlords - Rental Properties • Umbrella

22 www.UFCmn.com

Places Our P&C agency in LeSueur, going by the name Minnesota River Insurance, has a new home. The previous building was replaced by one constructed over the winter months. Our LeSueur team (Tim Lewis, Kayla Dornfeld and Roxie Pioske) moved into their new office on June 1.

We are also excited to announce that we have expanded our insurance portfolio with the purchase of Great River Insurance located in Mankato. Great River’s primary focus is commercial insurance and offers AgQuest much greater diversification of products and insurance carriers pertaining to property and casualty insurance, giving us an even stronger position and you more options when evaluating what’s best for your needs.

The employees of Great River and AgQuest/Minnesota River Insurance have a long-standing relationship stemming from mutual referrals back and forth. That relationship established the foundation that led to AgQuest purchasing Great River in 2017.

Tom Rekstein, has 38 years of insurance experience and is also a Certified Insurance Counselor (CIC). He will remain at the Mankato location as part of the AgQuest/Minnesota River Insurance team, as well as Missy Caron, who is a customer support specialist and Certified Insurance Service Representative (CISR).

In addition, we would also like to introduce the newest member of the Insurance team, Shannon Sinning. Shannon and his family live in Mankato, where he was most recently an Independent Financial Advisor with Gardner Financial Services. Shannon has a degree in Accounting from Gustavus and is originally from Mapleton, Minnesota. He joined AgQuest as a commercial insurance specialist on May 1, 2018. ●

Contact UFC’s AgQuest Representatives Vince Sloot 507-995-9029 Dawn Wickenhauser 507-647-6606, ext. 6749 Tim Lewis 507-593-0128 Amber Weber 320-523-5824 Derek Skala 507-430-6649

vsloot@agquest.net dwickenhauser@agquest.net tlewis@agquest.net aweber@agquest.net dskala@agquest.net

Make sure you are covered for the upcoming spring and summer storm season.

Do you have the right hail and wind coverage for your crops & farm property?

Are you covered if disaster strikes?

Contact Vince Sloot (crop) or Tim Lewis (property) for more information or to review available products that are right for your farm operation.

Vince Sloot, Finance/Crop Ins. cell 507-995-9029 vsloot@agquest.net

Together... We Find The Way!

Derek Skala Finance cell 507-430-6649 dskala@agquest.net

Tim Lewis, P & C Ins. office 507-593-0128 tlewis@agquest.net

Dawn Wickenhauser, Admin Finance/Crop Ins. ph 507-647-6606 x6749 dwickenhauser@agquest.net

AgQuest Insurance Agency is an Equal Opportunity Provider.

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23

705 East 4th Street PO Box 461 Winthrop, MN 55396 www.UFCmn.com

Safety Snippet: Chemicals are used in all types of situations ranging from residential to agricultural. UFC wants you to remember to always wear the proper PPE while applying chemicals in a secured area where children can’t access them.

Please read labels before use.

Stay safe!

UFC Customer Appreciation Event!

We look forward to seeing you at our annual pork chop dinners!

Monday, August 20 4:00-8:00 Hamburg Ag Service Center 16401 State Hwy 5/25 Hamburg, MN 55339

Tuesday, August 21 4:00-8:00 Winthrop Berdan Center 705 East 4th Street Winthrop, MN 55396

www.UFCmn.com