P E O P L E • P R I D E • P U R P O S E

Fieldviews

Plant With One Eye on the Markets

Page 18

SPRING 2015 EDITION

Building for Future Needs

Page 6

Celebrating 100 Years of Service

Page 5

Spring Blossoms at Garden Center

Page 19

2 www.ufcmn.com 3

New Look for a New Century

elcome to the first issue of UFC Fieldviews magazine. This magazine will focus on what matters to you and to the communities UFC serves.

Moving from a news-letter to a magazine is just one of the ways we’re improving com-munication with our member-owners as we enter our second centu-ry as a company. We are

also working towards a more interactive web pres-ence, so be on the lookout for us on social media.

If you have ideas for improving this magazine, including specific stories you’d like to see, please contact us. We promise to take your input seriously.

Sincerely,

Jeff NielsenGeneral Manager/CEO

As you read this edition of Fieldviews, UFC looks to the next century of serving our members.

W

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INSIDE THIS ISSUE:

New Look for New Century . . . . . . . . . . . . . . . . . . . Page 2

Creating Value for Future Generations . . . . . . . . . . . Page 4

Celebrating 100 Years of Service . . . . . . . . . . . . . . . Page 5

Building for Future Needs . . . . . . . . . . . . . . . . . . . . Page 6

Sorting a Mountain of Info . . . . . . . . . . . . . . . . . . . . Page 8

Earn Cash Back on Every Purchase . . . . . . . . . . . . . . . Page 9

Credit Management This Spring . . . . . . . . . . . . . . . .Page 11

2015 Financial and Insurance Potpourri . . . . . . . . . . Page 13

It All Started Here . . . . . . . . . . . . . . . . . . . . . . . . . .Page 14

Put Your PC or Cell Phone to Work . . . . . . . . . . . . .Page 15

Help Us Understand Your Needs . . . . . . . . . . . . . . . Page 17

Plant With One Eye on the Markets . . . . . . . . . . . . Page 18

Spring Blossoms at Garden Center . . . . . . . . . . . . . Page 19

More LP Storage Benefits Farmer and Co-op . . . . . .Page 20

Poultry is Big Business . . . . . . . . . . . . . . . . . . . . . . Page 21

In Whirlwinds of Change, Some Things Remain . . . . Page 22

Fieldmaster Boosts Locomotive Power . . . . . . . . . . .Page 26

UFC DIRECTORY

AgQuest FinAnce—507-647-6606 ext. 6749

Bird islAnd elevAtor—320-365-4012

Brownton shuttle—320-328-4002

cologne Feed Mill—952-466-5518

corporAte oFFice—507-647-6600

gAylord Ag center—507-237-4203

gAylord c-store—507-237-2281

giBBon c-store—507-834-6615

grAin MArketing—507-647-6601

green isle c-store—507-326-5866

hAMBurg Ag center—952-467-3111

hector Ag center—320-848-2296

klossner elevAtor—507-359-4519

klossner stAtion—507-359-4503

lAFAyette Ag center—507-228-8224

lAFAyette c-store—507-228-8364

lAFAyette elevAtor—507-228-8221

lAFAyette seed shed—507-228-8669

livestock service center—507-359-2970

norselAnd Ag center—507-246-5300

risk MAnAgeMent—507-647-6613

uFc FArM supply-Burnsville—952-890-5296

uFc FArM supply-lesueur—507-665-6421

uFc FArM supply-MAple plAin—763-479-2123

uFc FArM supply-wAconiA—952-442-2126

wAconiA energy oFFice—952-442-2126

winthrop c-store—507-647-5931

winthrop cheMicAl wArehouse—507-647-6615

winthrop elevAtor—507-647-5311

winthrop energy oFFice—507-647-6602©2015 United Farmers Cooperative. All Rights Reserved. Published in partnership with VistaComm®

(www.VistaComm.com).

4 www.ufcmn.com

Creating Value for Future Generations

By Jeff Nielsen, General Manager/CEO

ver the last decade, the United Farmers Cooperative board and leadership team has spent a great deal of time discussing the future of farming and rural communities, and what we must do to play a relevant role in that future.

Previously, we spent most of our time tracking past finan-cial performance. Then it dawned on us: although tracking history is important, we can’t do anything about it. The real value is in understanding history and using it to influence where we are going.

So, instead of spending 80% of our time evaluating where we’ve been, we now spend 80% thinking about where we need to be and how to get there. This change in emphasis has helped UFC’s leadership manage significant growth. We’ve become a stronger company, with an intentional focus on long-range planning that will allow this business to sustain itself.

By its own definition, the cooperative model has no end game. When the current board or leadership staff retires, there is no auction. Nobody cashes out. Our mission is to grow the value of this business so we can hand it to the next generation—just as our forefathers did.

It is notable that the current vice chairman of UFC’s board of directors is a gentleman by the name of Todd Nelson. Todd’s great grandfather was a founding member of UFC and also served as its vice chairman. In fact, Todd’s great grandfather, C.H. Nelson, was the cooperative’s first milk patron in 1915.

Our commitment to create the future stems from the fact that we do not own this company. We’re just stewards for a time.

The results of our planningYour board and leadership staff has identified the follow-

ing capital projects for completion during our 100th year in business: • A new central agronomy dispatch and repair shop in

Winthrop will allow us to efficiently utilize our equipment and maintain it in top condition.

• Expansions at all three UFC feed mills: Cologne, Klossner, and Le Sueur.

• Several million dollars of investment in trucks, equipment, and staffing across all divisions will keep pace with grow-ing demands for our services.

Beyond 2015, we’re exploring the construction of a cen-tral distribution terminal for crop nutrients adjacent to our Brownton grain site.

In recent years, we’ve experienced a shortage of transpor-tation (both river and rail) for critical fertilizer products at the worst possible times. A new distribution terminal will assure adequate supplies of these products for all UFC Agronomy locations by utilizing our unit train loading facilities to bring them into storage during the off-season.

This project will incorporate another long-standing princi-ple—cooperation among cooperatives. It will only become a reality as we work with our regional cooperative, CHS Inc., to provide storage and distribution services for other coopera-tives. A large distribution terminal in Central Minnesota will allow CHS to efficiently move nitrogen to the country upon completion of their domestic fertilizer production plant in Spiritwood, ND.

See “Building for Future Needs” on page 6 for more on this important project.

People • Pride • PurposeAnother aspect of our long-range planning is making sure

we have the right people to lead the businesses of UFC. This emphasis has resulted in a constant evolution of the UFC staff as we grow. While growth provides challenges, it also offers an opportunity to recruit and develop talent with expertise that can help UFC and its member-owners succeed in the future.

We recruit and develop talent both from within the com-pany and from the outside. An example of the latter is Dave Eckhoff, who previously worked for one of our vendors. Realizing his extraordinary leadership skills, we hired Dave in January as our new Vice President of Agronomy. See Dave’s introduction on page 6 of this magazine.

As we grow, you will continue to see these kinds of changes.We’re very proud of the value we’ve created for our

member-owners for the past 100 years. With our intentional approach to long-range planning, we expect UFC to contin-ue to provide value, just as it has since its founders met to organize the cooperative in 1915. We fully anticipate that this member-owned company will still be around to celebrate its 200th anniversary. ●

“The best way to predict the future is to create it,” said Abraham Lincoln.

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UFC board engages in long-term planning.

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o honor UFC’s 100th anniversary, we’re working on a video and a special edition of Fieldviews to be shown and distributed later in the year.

A special event is being planned for Friday evening, Aug. 21, 2015, that will combine our

ever-popular customer appreciation pork chop picnic with live music and a program to celebrate the history of your local cooperative.

This 100th year celebration will take place at UFC’s Berdan Event Center in Winthrop. It will include pork chops

grilled by area pork producers, with live country music per-formed by the Church of Cash, the Midwest’s Best Johnny Cash Tribute Show. This entertainment should have every-body kicking up their heels.

Be sure to mark Friday, Aug. 21, in your calendars so nothing prevents you from attending this extraordinary event.

We’ll conclude our first century celebration with our 100th Annual Stockholders Meeting next January. More details and other events will follow. ●

We’re excited and privileged to begin a second century of service to Central Minnesota. In these days of mergers, sellouts, and business failures, you can take great pride in the fact that United Farmers Cooperative, with its humble beginnings as a Lafayette creamery in 1915, continues to make a difference and add value to life and business.

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The Church of Cash will perform at our

100th year celebration on Aug. 21.

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Building for Future NeedsBy Dave Eckhoff, Vice President of Agronomy

ne way we’re doing this is by establishing new training guide-lines so we can provide you with the most knowledgeable and proficient custom appli-

cators in the business. We’re putting into place a set of checks and balances for our application crews that will minimize error, while ensuring the highest customer satis-faction, speed, and accuracy. These efforts are being led by Chad Wilson and Aaron Schwab.

Another way we’re anticipating your future needs is by investing in facilities that will ensure you an adequate supply of fer-tilizer.

Due to expanding agronomy business and tight fertilizer timelines to bring prod-uct to the countryside, UFC has decided to build a large distribution terminal for crop nutrients. Preliminary plans call for construc-tion to begin in Brownton, near our grain rail facility, in the fall of 2016. The terminal should be ready to receive product in the fall of 2017.

The proposed terminal would be stra-tegically accessible to all existing UFC Agronomy facilities and would supply these locations and their customers with addi-tional tons of fertilizer in season. It would provide opportunity to UFC’s market area between Hector and Waconia, giving us the resources to better serve customers in the area, as well as the ability to expand

agronomy services to existing grain cus-tomers. (See map and position of UFC Agronomy locations in relation to the pro-posed terminal.)

Besides dry urea fertilizers, the Brownton terminal would add liquid fertil-izer storage soon after it opens and would potentially consider other liquid fertilizer options to help cut costs and expand our trade area.

An important part of this plan involves the nitrogen fertilizer manufacturing plant that CHS Inc. is planning to build at Spiritwood, ND. CHS needs a distribution system for its product. Our proposed dis-tribution terminal will act as a hub, where the regional cooperative can ship unit trains of urea all year round, in preparation for supplying UFC and other cooperatives in Central Minnesota.

The proposed distribution terminal will be 100% owned by UFC. CHS will pay stor-age and put-through fees on the fertilizer it ships into and out of the terminal. This partnership is a crucial component of UFC’s plan to utilize this facility’s space for fertiliz-er storage and distribution.

As we plan for the future, please keep the following thought in mind. Whether it’s assembling a highly trained team of applica-tors or expanding our fertilizer distribution system, we do it all to anticipate and meet your future needs. We have no other motiva-tion than to add value to your operation. ●

As your operation efficiencies increase, UFC Agronomy strives to stay ahead of your needs.

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Introducing Dave Eckhoff

Our new Vice President of Agronomy, Dave Eckhoff, has worked closely with the management, sales force, and members of United Farmers Cooperative for the past five years as a district sales manager for Producers Hybrids.

Prior to that, he served as agronomy manager for Mid-County Coop in Cologne and held positions in sales and management with an agronomy compa-ny at Big Lake, MN. Dave has also managed a large farming operation in North Central Minnesota.

Dave, his wife, Melissa, son, Nicholas, and daugh-ter, Madilyn, live next to the family farm where he grew up. ●

Brownton terminal Coming in 2017gaylord: 507-237-4203HamBurg: 952-467-3111 HeCtor: 320-848-2296lafayette: 507-228-8224leSueur: 507-276-9855norSeland: 507-246-5300 waConia: 952-442-7312wintHrop: CHemiCal wareHouSe: 507-647-6615 fertilizer plant: 507-647-6610

Dave Eckhoff, Vice President of Agronomy

UFC AGRONOMY FACILITIESBrownton

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8 www.ufcmn.com 9

Sorting a Mountain of InfoSPECIALISTS PRESENT THE BEST OPTIONS AND YOU DECIDE

By Steve LeBrun, Vice President of Feed

Information and technology are expanding rapidly in the livestock industry and in general agriculture.

xperts tell us human knowledge doubled every century before 1900. By the end of World War II, knowledge doubled every 25 years. Today, human knowledge doubles, on average, every 13 months. Some believe knowledge will eventually double every

12 hours. If this is the case, we all need help keeping up with the latest trends in our industry.

Besides supplying quality feed products, those of us in the UFC Feed Division consider it our responsibility to provide you with the technical help and expertise necessary to stay relevant in your specific business—swine, dairy, beef, poultry, equine, or pets.

We employ a sales staff of eight full-time and six part-time specialists with extensive knowledge of all the livestock for which we supply feed. Many of these specialists have over 20 years of experience in their field, but they’re still gathering

and applying new information and practices. Other, younger team members are learning the basics from the senior staff while introduc-ing all of us to new ideas and technologies beneficial to this fast-changing industry.

In addition to specialists, the UFC Feed Division can pro-vide you with products from several regional feed companies that represent the newest technologies. The ability to deliver branded products from several companies, both individually and within our formulated diets, means cost-effective and efficient ration formulation for you.

In today’s business environment, you must make multiple decisions every day. Most of these decisions will directly affect the profitability of your operation. Our goal is to gather and sort through all available information. We’ll present the best options and let you make the final decision as to what is best for your livestock operation.

I encourage you to make use of the UFC Feed Division’s resources. You can access both our products and our exper-tise by calling any UFC location and asking to speak with a livestock specialist. That specialist will answer your questions or put you in touch with someone who can. ●

E

UFC livestock specialist Roger Landon (left) works with Michael and Rolf Annexstad (center and right) on feed rations.

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Earn Cash Back on Every PurchaseBy Dean Meyer, Vice President of Consumer Goods and Retail

he checks that were distributed in December were sent to everyone who had a UFC account and had done business with UFC Farm Supply from Sept. 1, 2013 to Aug. 31, 2014 - our latest fiscal year. Many had no idea where the money came from,

and we had the pleasure of telling them, “This is possible because of the merger between Waconia Farm Supply and United Farmers Cooperative a little over one year ago. We’ve become a stronger company.”

This gives us the ability to return part of our profits to our patrons. The total amount distributed to UFC Farm Supply patrons in 2014 was $65,241 - which was about 2¢ per dol-lar on purchases of consumer goods and hardware, and 1¢ per dollar on powersport purchases. Personally, I think it’s a great way to thank you as a customer for doing business with us and for making UFC and UFC Farm Supply a success. I ask you, “Where else can you buy hardware and get money back?”The patronage earnings distributed to you may be tax-free; it depends on the purpose of the purchase. If the

purpose was household or personal in nature, the patron-age distribution is tax-free. If the purchase was a business expense, then the patronage distribution must be report-ed as taxable income. Remember, if that is true, then the expense of the purchase is deductible as well.To ensure you have a UFC account, check with one of our locations. We just need your name, address, and federal employer identification number or social security number, which is required by law for UFC to pay a patronage refund. UFC distributes 50% of qualifying purchases in cash.

The remaining balance of 50% provides equity to UFC until it is redeemed, according to the policy of the Board of Directors. Currently, UFC retires equity when our patrons reach age 69, which is when you are eligible to receive the remaining balance in one lump sum. Going forward, your purchases at UFC Farm Supply will make you eligible to receive a patronage dividend from UFC if UFC is profitable again in 2015, which we fully anticipate. ●

Buying a shrub, a hammer, or even an ATV this spring at UFC Farm Supply? You could be earning patronage on that purchase. After having a prof-itable year, in December 2014, the UFC Board of Directors approved a cash-back dividend (refund) for the first time ever on consumer goods and hardware. Anyone, not just members, who purchased products and services from UFC Farm Supply and had a UFC account, were eligible to receive a patronage dividend.

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For easy and consistent injection of Headline® EC into your liquid starter Hastings, MN spring 2013. Pioneer 0533. 18 days after planting. Dosatron applied.

Contact your local UFC location for more information on how an in-furrow application of Headline EC can help you maximize your yield potential through even emergence, enhanced root growth and EPA recognized plant health beneeits.

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11

Credit Management This SpringBy Joel Dahlgren, General Counsel and Chief Risk Officer, and Geoff Lemke, Credit Manager

his spring, we may ask a few of you about your plans for payment of accounts. We may ask you to sign an authorization so we can contact your lender and confirm that credit is available for spring pur-chases. We offer alternative financing approaches

for spring inputs, and we want to make sure you have suffi-cient time to pursue those alternatives before the crunch of spring planting.

We mean no harm or frustration to anyone by wanting to be a little more intentional about how credit is extended. Our accounts receivable reached $15.5 million last spring in the month of June, so UFC’s credit exposure is high during the planting season. We owe it to the 99% who abide by UFC’s credit policy to manage the extension of credit, so that they do not end up paying for another customer’s unpaid account.

UFC’s basic credit policy is to require payment for items purchased in one month by the last day of the following month. In theory, a customer who purchases products and services on the 1st day of a month could get up to two months, or 60 days, of free credit.

We want to honor everyone’s good intentions, and we know that no one wants to be in a position where they can-not pay for their purchases. However, we also know that, despite everyone’s best efforts, financial stress occasionally makes it difficult for a customer to pay their account. We must be prepared for this possibility, and that is why we occasionally review the creditworthiness of our customers.

If you have credit questions prior to spring, please do not hesitate to contact our credit manager, Geoff Lemke, or a vice president of any UFC business unit. ●

United Farmers Cooperative provides convenience credit so you can convenient-ly purchase products and services from this customer-owned company. Ninety-nine percent (99%) of UFC’s customers pay the amounts owed on their accounts just as they are required to do under the cooperative’s credit policy.

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Nutritionists, specialists, and innovative solutions for every species.

Contact your Form-A-Feed or UFC representative for more information about our product offerings, and our dedication to professionalism, quality products, and innovative solutions.

Also be sure to check out our website to find articles and resources on current industry topics. Be sure to subscribe to our beef, dairy and swine blogs so you don’t miss out!

Connect with us now at www.formafeed.com!

740 Bowman Street • Stewart, MN 55385800.422.3649 • www.formafeed.com

Feed Management and SamplingRation Balancing

Team BuildingFarm Walk-Throughs

AgQuest Insurance Agency is an Equal Opportunity Provider.

AgQuest partners with UFC to bring you the best Finance & Insurance options available.

We work right next to your DSM to offer you the best option for your farming needs.

Together... We Find The Way!

Call your Account Manager or your AgQuest representative Vince Sloot and let them help find the best financing &

insurance option that is right for you!

Working Together, We Find The Way!simple. convenient. flexible.

Vince Slootcell 507-995-9029t.free 866-998-3266vsloot@agquest.netwww.agquest.netwww.ufcmn.com 705 E 4th Street, Winthrop, MN

2015 ads.indd 1 2/5/2015 9:46:10 AM

2015 Financial and Insurance PotpourriBy Vince Sloot, AgQuest Business Relationship Manager/Crop Insurance Specialist

1. Besides updating your base acres and yields, and making your program election (PLC, ARC-CO, or ARC-I) through FSA, be sure you are “conservation compliant” by verifying that you have a current AD-1026 form on file. Non-compliance would jeopardize your crop insurance premium subsidies!

2. If you intend to break new ground or native sod, or if you have done so already, please contact your AgQuest Insurance agent. New rules pertain to breaking native sod and new ground. We don’t want you to be penalized for non-compliance, resulting in zero premium subsidies on those acres.

3. These are the earliest planting dates allowed to ensure full insurance benefits: wheat – March 21; corn and beets – April 11; soybeans – April 21.

4. Late planting dates: wheat - May 15; corn and beets - May 31; soybeans - June 10. On any acreage planted after these dates, coverage guarantee is reduced 1% per day, up to 25 days.

5. In recent years, volatile weather has turned prevent plant, re-plant, hail, and wind/green snap into somewhat familiar words. If any of these events appear on your radar this year, consult with us for a clearer understanding of your options.

6. We recently had the privilege of hosting Dr. Art Barnaby, Ag Economist-Kansas State, to explain the 2014 Farm Bill. To watch a video of this entire session, set your Internet browser to www.goo.gl/ENIOBL.

Some timeless principles discussed in previous issues of UFC Fieldviews are worth repeating at this time of year. A noted ag economist recently reminded a large gathering of ag profession-als to avoid putting too much focus on trying to sell at market highs or trying to lock in inputs at their absolute lowest levels. Instead, put more effort into managing for the best margin—even if those margins happen to be negative, like this year.

Surveys reveal the vast majority of us only have a ballpark idea of our break-even points. Strive to know your break-evens. By now, opportunities exist to start getting those break-evens into sharper focus.

Here’s to your success in 2015.For more information on the risk management tools

available to you, contact UFC’s AgQuest representatives, Vince Sloot at 507-995-9029 or Dawn Wickenhauser at 507-647-6606 x 6749. You may also email us at vsloot@agquest.net and dwickenhauser@agquest.net or visit us online at www.agquest.net. ●

As we approach the planting season, here are some aspects of risk management that are worthy of your attention.

AgQuest Insurance Agency is an Equal Opportunity Provider.

AgQuest partners with UFC to bring you the best Finance & Insurance options available.

We work right next to your DSM to offer you the best option for your farming needs.

Together... We Find The Way!

Call your Account Manager or your AgQuest representative Vince Sloot and let them help find the best financing &

insurance option that is right for you!

Working Together, We Find The Way!simple. convenient. flexible.

Vince Slootcell 507-995-9029t.free 866-998-3266vsloot@agquest.netwww.agquest.netwww.ufcmn.com 705 E 4th Street, Winthrop, MN

2015 ads.indd 1 2/5/2015 9:46:10 AM

14 www.ufcmn.com

It All Started HereBy Jay Walterman, Vice President of Farm Equipment & Construction

he current Ag Center model is designed to be a one-stop experience. With one visit, a farmer can book agronomy and petroleum, buy farm and grain handling equipment, pick up parts and tires, and have equipment repaired.

The model has grown and moved beyond this commu-nity in varying degrees to Gaylord, Hector, Norseland, and Waconia. It appears to be headed to Hamburg, as well. However, Lafayette is the focus of this article.

What started as a creamery has expanded to:• Grain Handling Equipment—Bins, dryers, grain legs, air

systems, augers, and conveyors. We provide complete ser-vice, from computer-aided design (CAD) to trained service technicians to construct your projects. Brands: GSI, Farm Fans, Brock®, Sudenga, Westfield, and Sukup.

• Short Line Farm Equipment and Rental—New and used skid steer loaders, spring and fall tillage implements, seed tenders, grain carts, sprayers, and hay, forage, and manure handling equipment. Brands: Bobcat®, Gehl, Wil-Rich, Kuhn-Krause, Great Plains, Wishek, H&S, Demco, Meyer, and Parker.

• A Full Parts Department—Including precision ag equip-ment for planting and guidance systems, Interstate Batteries, pressure washers, and an exten-sive array of related farm support parts.

• A Full Service Shop and Tire Service— Including two on-farm tire repair trucks, DOT, farm equipment, and heavy truck and small engine repair.

• Lawn and Garden Equipment—Mowers, chainsaws, hand-held power units, blowers, and tillers. Brands: Cub Cadet®, Echo, Hustler, and Jonsered®.

In addition to the above, you can pay your bill, purchase hardware, buy a Sioux gate, or a Pro-tec, Wick, or Sentinel Building. You can get advice from experts in a variety of farm-related fields, and many of our professionals have 30-40 years of service.

All you need plus patronageYup, this is where it all started, about a block from the

present Lafayette Ag Center. We have never forgotten who owns our business. We have worked diligently and managed your resources efficiently, with the goal of providing you very competitive products and services, and then returning to you the fruit of our joint venture in the form of patronage.

Thanks for your support. ●

Your cooperative, with its origins in Lafayette, has continuously served this community for the last century. It all started right here in 1915 with the orga-nization of the Cooperative Creamery Association. From those humble begin-nings came a continuous stream of service offerings: agronomy, grain, feed, petroleum, and by the 1950s, farm equipment.

TThe cooperative began about a block from the present Lafayette Ag Center, above.

The Lafayette Ag Center recently built this corn drying, handling, and storage system for Fischer Brothers Farms of Hanska, MN. (Photo courtesy of Minnesota Farm Guide.)

14 www.ufcmn.com 15

Put Your PC or Cell Phone to WorkBy Jason Tews, Vice President of Grain

nited Farmers Cooperative has made it easier for you to do your grain business with us. Now you can do three basic things electronically: check your account, deposit your grain checks, and sign purchase contracts online. You don’t need to

come to UFC’s offices to do any of these things anymore.

Online account accessAccess your account with UFC and see everything from the

fuel you’ve purchased to the grain you’ve sold. View the details on each grain contract—what price you settled on, the number of bushels, what’s been delivered against each contract, and the grades that have been assigned to each delivery.

At the year’s end, you can print at home the assembly sheets you’d normally come to the office and wait for. You can also print reports that tie directly to your 1099 and print reports needed for insurance. Do all this from your PC or smartphone.

To sign up for online account access, go to www.ufcmn.com and click on ACCOUNT ACCESS under the LOGIN drop down menu. Then click on FIRST TIME SIGN ON, if you have not previously created an account.

You’ll be led through the process of setting up your account for online access. Then, sign in and start retrieving information. NOTE: You will need your UFC customer num-ber to set up your account.

Deposit via ACHIf you sell corn and want the check right away, we

can deposit it directly to your bank account as an ACH (Automated Clearing House) transaction. Funds will be deposited directly into your account within 1-2 business days, no waiting for the check to arrive in the mail and then for the check to clear the bank.

To do this, you must fill out a physical ACH Agreement that we will send to your bank, so future checks go straight into your account.

Call the main UFC Grain desk at Winthrop (507-647-6601) or stop at any of our local elevators to pick up an ACH Agreement.

Electronic signatureLike ACH, you must fill out a physical authorization form

to confirm grain purchase contracts online. Once the form is completed, you’ll receive an email and a link to the eAgVantage log-in screen whenever you have a contact to view and sign via electronic signature.

It all comes back to convenience. Why run back and forth to the cooperative, to the bank, and to the post office when you can deposit your grain checks automatically and access your account or confirm your contracts online?

Get started saving time today. ●

In this electronic age, nobody has any more time in their day. If any-thing, our days are more crowded.

U

At United Farmers Cooperative, we’re making a significant change in the way we relate to our customers. Rather than positioning products and services we think you might buy, we’ll invest a sizeable portion

of 2015 identifying your needs and determining how UFC is best able to address your needs.

17

Help Us Understand Your NeedsBy Greg Peton, Executive Vice President of Sales

• In some cases, it may mean developing our sales team in one division to recognize a need that can be met by another division of UFC and introducing you to the solution.

• In other cases, it may mean expanding into a new area of business that will provide solutions for a need we currently do not address.

We want to be a company capable of offering solutions and providing you with value that enhances your business and your life. We want to be trusted advisors in whom you have full confidence that we’re representing your best interests.

As stated earlier, the first step to changing our approach is to identify your needs. We must gain a full understand-ing of your plans and the problems you face. Only then will we be able to offer solutions that provide a more favorable return on your investment.

In the coming weeks and months, a UFC sales represen-tative will call to schedule an appointment to visit with you. Rather than expecting you to come to our offices, we want to meet at your preferred location. It might be on your farm, in your office, shop, or home, or it may be at the Ag Center counter or Farm Supply location where you are accustomed to conducting business.

Wherever it is, we hope you are open to having a conver-sation with us. We guarantee you’ll benefit from that brief chat. ●

UFC customer Tom Eckberg (left) is visited at his farm by Brett Amberg (cen-ter), UFC’s in-house Farm Rx specialist, and Bob Wilkinson (right), Norseland area DSM, to discuss spring farm plans. UFC Master Agronomy Advisors, Jesse Wiant (left) and Ryan Ponwith (right),

utilize UFC’s new drone technology to help give growers a bird’s-eye view of their acres. With the drone, they are able to help ID troubled areas and find solutions, show side-by-side product comparisons, and scout crops more efficiently.

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Plant With One Eye on the MarketsBy Nathan Nordstrom, Director of Grain Merchandising

Last year, you had the opportunity to market soybeans into June at very high prices, and you had the chance to sell corn into May at prices more closely resembling previous years, versus the prices we’re currently seeing. Every year is different, but last season’s price pattern served up an important reminder - you may miss some great opportunities if you ignore the new-crop market while planting and carrying out other early growing season tasks.

eep your options open during planting, but start building the basis for your marketing plan well before heading for the field. I suggest a diver-sified approach, dividing your projected crop into three segments: a certain amount of forward

sales, a certain amount that you will sell out of the bin, and a certain amount that you will store at the local elevator.

Forward Sales – Sell for harvest or utilize on-farm storage and sell the carry for later delivery. HTAs (futures-only) fall into this category. UFC’s HTA is flexible to the best market and can be rolled to the most profitable delivery period. Consider using some simple low-cost, up-side protection if you are planning on selling a higher percentage forward.

Sell Out of the Bin – Uncommitted grain in the bin is great to have in a year when supply is tight. Bins also give you the opportunity to participate in the next spring’s sea-sonal market opportunities.

Store at the Elevator – Elevator storage or delayed price adds the most value when it is used as a supplement. Forward harvest sales and on-farm storage capacity should only cover a percentage of a conservative yield guess. Using storage to cover the rest ensures you are only paying for what you use.

Instead of filling your bins at harvest and thinking, “Now what?,” be thinking about the upcoming crop and how you will manage it. Having a marketing plan and a forward-look-ing approach is important.

Then, plant with one eye on the markets. I realize you are super busy putting in the crop, but keep the grain trade in your mind. There are many years where you experience normal weath-er and good planting conditions. In these years, the best time to sell your grain is when you are in the field, because the market sees risk being reduced throughout the season and prices tend to weaken based on the risk premium leaving the marketplace.

However, there will also be years when planting doesn’t go so well. The early-season rains fail to arrive and drought conditions start to take hold. In these years, you need to be thinking about Plan B, and how what you have already done will factor into the total equation.

So have a balanced approach, but don’t get over extend-ed. Keep an eye on the markets and your grain merchandis-er’s phone number handy.

In addition to being fluent in the grain marketing and cash marketing alternatives, your UFC Grain originator also has a good understanding of crop insurance and the farm program, and how these risk management tools impact your marketing plan.

Call the main UFC Grain desk at Winthrop at 507-647-6601 anytime. ●

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Introducing Nathan Nordstrom

Our Director of Grain Merchandising, Nathan Nordstrom, supervises all the grain originators of United Farmers Cooperative. He took on this position at the beginning of 2015.

Nathan’s background includes 12 years in local and national grain merchandis-ing. Most recently, he man-aged cash corn purchasing and renewable fuel sales for a large Midwestern ethanol producer. ●

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Spring Blossoms at Garden CenterBy Kathy Watson, Waconia Garden Center Manager, UFC Farm Supply

pring is right around the corner, and there will soon be plenty of things to do outside. Here’s a short list of early-season tasks for homeown-ers and lifestyle farmers:

❏ Rake up the leaves and other debris on your lawn

❏ Remove the burlap or wraps from your small trees

❏ Cut down perennials you allowed to stand as a winter feature

❏ Fertilize perennials and shrubs❏ Pull emerging weeds❏ Apply pre-emergent weed preventer to your

grass and turf❏ Mulch your ground if it is not super wet Early spring is also an ideal time to plant cool season

crops like potatoes, onions, lettuce, and brussels sprouts. Spring bulbs can also be planted, and it’s a good time to start dividing some perennials—depending on the kind.

Our staff has years of horticultural and gardening expe-rience, and we are happy to answer any questions you may have. Come and explore our Garden Center, which will be full of perennials, trees, shrubs, annuals, and veg-etables. This year, we are bringing in a larger variety of edibles such as raspberries, blueberries, and rhubarb.

We carry a multitude of planting containers, from plastic and wood, to the versatile ceramic ironstone, a pot that can be used in all seasons. UFC Farm Supply is a great source of grass and garden seed, turf fertilizers, and plant fertilizers. Our rental department has tillers to get your garden ready and various types of aerators to improve the health of your lawn. Finally, we have what you need to complete those do-it-yourself proj-ects you’ve been reading about all winter on Pinterest, such as making a potting bench or a plant container out of pallets. UFC Farm Supply can provide you with the raw materials to complete many of these projects. The Waconia Garden Center is scheduled to open March 23. Check www.ufcfarmsupply.com for product information and upcoming events. ●

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Bruce and Laurie Platz

Lafayette corn grower Bruce Platz asked UFC Energy to install an 18,000-gallon LP storage tank last summer. “Fall is a very poor time to run out,” says Bruce, who previously relied on LP gas deliv-eries every other day during the drying season.

Bruce, who also raises hogs wean to finish, took advantage of UFC’s large LP storage tank pro-gram. He consolidated six tanks totaling 5,000 gallons into one 18,000-gallon tank. UFC hooked his dryer, four hog buildings, a small barn, his house, and his shop to the new tank.

“The biggest benefit is having a year’s worth of LP,” he states. “We need a consistent supply.” Another benefit, says Bruce, is the savings of ordering LP in transport loads.

“A side benefit is that I’m not running around to all these tanks in the wintertime to figure out whether I’m going to make it to the next delivery,” he adds.

Jason Enter and Perry Meyer

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More LP Storage Benefits Farmer and Co-opBy Doug Lund, Energy Operations Manager

UFC Energy introduced a large LP storage tank program last year with the goal of increasing LP storage within our trade area. With pipe-line reversals and a chronic shortage of trucks

during the crop drying season, it made sense to store more LP during the off-season.

e partnered with CHS Inc. to offer our customers a 10-year financing package on 12,000-, 18,000-, and 30,000-gallon tanks. Many of these customers use LP both to dry their crops and to heat their livestock facilities. By partnering with CHS, the farmer didn’t have to pay up front for the tank, and UFC didn’t take a hit on its balance sheet. Of

course, CHS was delighted to have our customers’ commitment to purchase LP gas over the next 10 years.

Last summer, we installed 18 of these large tanks. We sat down with each farmer and analyzed how many gallons of LP they use, to determine the right-sized tank.

As a result of the addi-tional storage, UFC Energy was able to eliminate a large number of deliveries at harvest and route its trucks more efficiently to all of our customers.

Smaller tanks available, too

You needn’t be a large-volume LP user to benefit from adding or upgrading your storage. Last year, UFC Energy set 120 tanks ranging from 500 to 1,000 gallons. With more storage, you don’t see the truck in the yard as often, and you have greater assur-ance of having the gas you need, when you need it.

Adjacent to this story are the comments of two UFC energy customers who par-ticipated in the large tank storage program this year.

If you would like to explore upsizing your LP storage next summer, call the UFC Energy Team at 507-647-6602. ●

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Bruce Platz with grain dryer and 18,000-gallon LP storage tank in the distance.

Jason Enter with 30,000-gallon LP storage tank and grain drying facility in the background.

Meyer-Enter Farms, New Ulm, installed a bigger corn dryer three years ago. With four 1,000-gallon tanks dedicated to the dryer, a UFC Energy delivery truck had to be on their farm at the same time every day to prevent them from running out.

Now that UFC Energy has installed a 30,000-gallon tank on the farm, four transport loads of LP will keep the dryer supplied in the fall, and another transport of LP will heat the farm’s three hog barns.

“We don’t have to worry about the trucks showing up exactly on time or running out of gas, and we don’t have to worry about the hog operation running out of gas, either.” says Jason, who praises the cooperative’s thoroughness.

“Without UFC putting together the total package—concrete, pip-ing, cranes, installation of the tank, financing, and everything—I don’t know that we would have a tank right now,” he states. ●

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By Sue Kelly, Consumer Feeds Business Manager

The backyard poultry industry is growing by leaps and bounds. More and more people are raising their own poultry, whether for eggs or for meat. Many municipalities have now passed regulations allowing residents to have chickens in their backyards.

t UFC Farm, we begin taking orders for baby chicks from mid-February through June. With every order, our customers

receive a free copy of “The Backyard Poultry Book,” which explains in com-mon language how to raise chickens, ducks, geese, turkey, and game birds.

In late March and early April, we will be hosting “Tour D’Cluck” poultry seminars presented by Twain Lockhart, Nutrena Poultry Specialist. These seminars are held at our Waconia, Maple Plain, and LeSueur locations and instruct poultry enthusiasts on the care and management of their flocks. Please visit our website at www.ufc-farmsupply.com for dates and times.

Are you interested in only get-ting a few birds? We host our “Pick a Chick” days on April 6, April 20, and May 4 at our Maple Plain and Waconia locations. We feature a variety of breeds on different days, approximately 200 at a time. This allows you to pick the quantity of the breeds you would like to take home.

Visit www.ufcfarmsupply.com to see which breeds will be available in-store on any particular day.

Besides being the source of your chicks and information, UFC Farm Supply carries many brands of poultry feed, including Purina®, Nutrena™, and our own brand, Prairie Hill Farms. In addition, we stock all the accesso-ries you’ll need to raise poultry such as feeders, waterers, heat lamps, bedding, and poultry treats. Yes, poultry treats, such as meal worms, which have become very popular! For beginners, we sell a chick starter kit that includes a feeder, waterer, and a brooder pen to keep your animals in.

Thinking about raising poultry? Stop at UFC Farm Supply, and we’ll give you the scoop.

Editor’s Note: Chick orders and poul-try raising supplies are available at these UFC Farm Supply locations: Waconia, Maple Plain, LeSueur, and Cologne.

*UFC’s Klossner location also sells chicks, poultry supplies, and poultry feed. ●

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Poultry Is Big BusinessRAISING CHICKS IS ALL THE RAGE

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In Whirlwinds of Change,Some Things Remain

By Jeff Franta, Board Chairman

onsidering all of the changes our members have witnessed in the last century, I can assure you some things have not changed. The principles that guided this organi-

zation from the very beginning continue to guide the UFC board of directors at every meeting. As the theme for our annual meeting pointed out, we are INTENTIONAL about sticking to our plan and purpose. We are also HISTORICALLY GROUNDED, being well aware of the value of the increased competitiveness created by those who willingly pooled their resources in 1915 for the benefit of all. The value of this principle has been proven many times over throughout our history. Finally, we strive to remain FUTURE FOCUSED, directing UFC to where it must be in the years ahead to remain strong and viable.

At the annual meeting, your board of directors downsized from 11 to 10 members. As agreed during the Waconia Farm Supply merger, UFC director Jim Abraham has stepped down from the board after one year of service. Thanks, Jim, for 10 years of combined, dedicated service on both boards! Jim Oelfke, who also joined the board as a result of the merger, will stand for re-election next year. Also at this year’s annual meeting, members elected three incumbents to three-year terms: 1. Todd Nelson, representing the south central trade area,

2. Todd Kettner, representing the north central trade area,

3. Kevin Lauwagie, a director-at-large from the Winthrop area.

A financial look backI’m always pleased to mention the track record of profit-

ability UFC has enjoyed throughout its history. Our 99th year of business has been historic indeed. We experienced some big changes, rapid growth, and a record year of profitability in 2014.

As a result of the cooperative’s strong financial position and healthy reserves, your board of directors allocated most of 2014’s profits to the members. Again using a combination of qualified and nonqualified allocations, the amount distrib-uted to the members was about double the previous year’s figure.

At present, your board does not plan to reduce the equi-ty retirement age from 69 years, but we may begin to retire past years’ equities.

Collaborating locallyAt UFC, we believe our track record of success is due in

large part to our ability to adapt to constant change. From the board and management team, to the individual employ-ees—everyone seems to make the adjustments necessary to grow and increase in profitability.

We’ve also worked hard to maintain good relationships with our cooperative neighbors and to work together on any project of mutual benefit. Here are some of the ways we’ve collaborated in recent years:

• Prior to our Brownton rail loading facility, we successfully worked with a local cooperative to get grain on rail.

• In the years preceding our merger with Waconia Farm Supply, they had been leasing space in our fertilizer plant.

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Our annual meeting, held on Jan. 12, 2015, at the Berdan Event Center, marked the beginning of our 100th year as a cooperative business. United Farmers Cooperative started as the Cooperative Creamery Association in Lafayette in 1915.

• We still view the short part-nership we had with ADM in the forming of United Grain Systems as a valuable part-nership that gave us firsthand experience in grain and freight trading.

• On a regional level, CHS Inc. has been leasing space in our fertilizer facility since it was built.

• The WinField chemical dis-tribution facility next to our home office in Winthrop is a successful partnership with Land O’Lakes.

• We also have a great working relationship with CoBank, our primary lender.

• Our latest working relationship is a project with CHS—the development of a fertilizer dis-tribution center at Brownton targeted for operation in the fall of 2017. See “Building for Future Needs” on page 6.

We never know what opportu-nities lay ahead. We just try our best to be ready. In all we do, UFC is committed to keeping this cooperative and our cooperative neighbors in this region under local ownership and control.

In closing, I’d like to thank all of you for your loyalty and sup-port. Your patronage and active participation is what is necessary to keep UFC strong and viable. Have a safe and enjoyable spring season! ●

The right nutrients. The right formulations. The right timing.

No one knows plant nutrition like WinField.WinField has best-in-class plant nutrient products and technology, agronomic experience, and the long-term vision to help you achieve the greatest profit potential on your genetic investment. Rely on our experts for 360° nutrient management and the right year-round program for your fields. To learn more, talk with your retailer or visit winfield.com

WinField is a trademark of Winfield Solutions, LLC. © 2012 Winfield Solutions, LLC

Package features include: • Grid sampling • Variable rate recommendations for fertilizer, seeding, and nutrients • In-season satellite imagery • Tissue sampling and stalk nitrate testing • • Customizable yield and product reports

UFC is proud to introduce United Insight, a new precision ag program designed to help growers get the full potential out of their agronomic data.

Capturing data’s potential…

Contact your UFC agronomist for more information • UFC Winthrop 507-647-6600

SEE YOUR FIELDS FROM SATELLITE,GROUND AND OTHER PROFITABLE ANGLES.

THE R7® TOOL. AN ENTIRELY FRESH LOOK AT YOUR FIELDS. The R7® Tool by WinField generates field performance information about every acre and matches crop inputs and decisions to each field’s – and zone’s – potential. By combining satellite imagery with local seed and crop protection data from the Answer Plot® Program, you’ll learn which products and practices will produce the best yield potential.

Contact us for more information or to schedule an appointment.

Answer Plot, CROPLAN, NutriSolutions, R7 and WinField are registered trademarks of Winfield Solutions, LLC.

© 2013 Winfield Solutions, LLC

Fieldmaster Boosts Locomotive Power

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By Darv Turbes, Vice President of Energy

wo identical locomotives powered either end of a train running on a dedicated route from Central Minnesota to St. Paul and back. One of the 2,300-horsepower locomotives burned Cenex® Ruby Fieldmaster® Premium Diesel, and the other

burned straight No. 2. The locomotives ran 24 hours a day, and the trial spanned 19 weeks, from late 2013 into early 2014.

“Locomotive fuel is our second-largest operating expense, so we are always looking for creative ways to manage this expense and find solutions that will result in efficiencies,” said Victor Meyers, TC&W’s vice president of operations.

TC&W agreed to the trial after learning that Fieldmaster had improved the fuel efficiency of many diesel engines by 5% and increased horsepower by 4.5%, as well as helping to extend the life of major engine components.

During the trial, the locomotive that ran the Fieldmaster Premium Diesel consumed 10.8% less fuel.

Additionally, Fieldmaster improved the horsepower of that locomotive. Tony Emerson, CHS senior business devel-opment manager, recalls talking with a TC&W engineer mid-way through the trial.

“It feels like the train running premium fuel is being held back by the other one,” said an engineer. That observation proved to be true. The pre-trial horsepower rating on the locomotive running Fieldmaster was 2,217, while the post-tri-al horsepower was 2,370—an increase of 6.5%.

“We also observed that our fuel filters, which were changed during scheduled maintenance, were much cleaner in the locomotive running premium diesel than in the loco-motive running the traditional No. 2,” said Victor.

After witnessing these dramatic results, the TC&W Railroad made the decision to purchase Fieldmaster Premium Diesel and run the fuel in the entire locomotive fleet. The rail-road runs 100% Fieldmaster in their power units to this day.

“We have continued to experience very good results throughout our entire fleet of locomotives,” remarked Victor.

To our ag customersWhile the above trial is unusual in terms of the size and

the application of the diesel engines studied, the engines on your farm can achieve similar efficiencies. Moreover, meeting the specs of the new T-4 diesel engines requires a high “D” grade diesel fuel with an additive package like Cenex Ruby Fieldmaster Premium Diesel.

“The injector stabilizer in Fieldmaster makes sure the fuel doesn’t break down under the high pressure of these engines,” says Scott Rohlik, CHS district manager. “The stabilizer keeps the injectors clean so they spray a fine mist across the cylinder wall and burn the fuel fully—that’s where the economy comes in.”

If you have yet to apply the efficiencies of premium diesel to your bottom line, contact your local UFC Energy Office today and conduct your own trial. For more testimonials, visit www.cenex.com/fuels/cenex-ruby-fieldmaster. ●

Last year, United Farmers Cooperative and our energy supplier, CHS Inc., with the cooperation of the Twin Cities & Western Railroad, completed a fuel efficiency trial comparing premium diesel with No. 2 diesel.

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705 East 4th StreetPO Box 461 Winthrop, MN 55396

www.ufcmn.com

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Loyall® Premium Pet Foods are specially formulated for your pet’s individual needs. Your pet’s nutritional needs

are influenced by a variety of factors, such as age, activity level and sensitivities. That’s why our line of premium pet foods includes several dog formulas and one cat formula.

Consumer: Limit one coupon per customer per visit. Not valid with any other offers. Valid at any participating retailer. Not redeemable for cash. Void if transferred or copied and where taxed, restricted or prohibited by law. Retailer: We will reimburse you the face value of this coupon plus handling, provided it is redeemed in accordance with Cargill Incorporated’s coupon redemption policy, available on request. Reproduction of this coupon is expressly prohibited. (Any other use constitutes fraud.) Invoices proving purchase of sufficient stock within the past 180 days to cover coupons presented for redemption must be shown upon request. Cash value .001¢. Mail to: CMS Dep’t 22304, Cargill Animal Nutrition, 1 Fawcett Drive, Del Rio, TX 78840. ONE COUPON PER CUSTOMER.

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Loyall® Pet Food available at UFC Farm Supply: