A Healthy & Positive Culture Leads to Success- Page 1

Spring is in Full Swing - Agronomy Update- Page 2

It’s Time...For Web Time- Page 3

April 2016

ViafieldThe

R

Voice

Creating a Healthy and Positive Culture Leads to SuccessAt the time of this writing our spring agronomy season is in full swing. Delivery and application of NH3 and dry fertilizer to our customers, has so far been noted as one of the most successful and safe in recent memory. I would like to credit this to the coordination and communications of our operations and sales teams. When we work together to win the business for Viafield and execute as one team, our performance improves and customers are more satisfied.

The proof is the increased sales of NH3 in season. Improving margins and volume this season will be critical to our year-end performance, and it’s fantastic to see everyone working together to achieve positive results. We have a long season ahead of us, but I’m proud of what we have accomplished thus far and confident we’ll continue the strong momentum.

Financial performance for March YTD was slightly above expectations, closing the gap between actual net savings and our YTD plan. Agronomy volumes continue above plan and are the bright spot for the cooperative. We must continue the growth in volumes this agronomy

season to achieve our plan results, which requires everyone working together to sell and execute additional business with our customers. Gain margins continue to be well ahead of last year, which should lead to closing our budget gap as sales from farmers increase this summer. Volumes in our feed business are stabilizing after a period of disease impacting our customers. After a challenging energy year with

Continued on page 2

Chris LudwigCEO

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a slow drying season and warm winter, we are forecasting a strong finish to the year.

This past month, there were 11 presentations at our locations sharing the results of the grain and agronomy consulting project (SAM). We had excellent participation, questions, and discussion among all our team members. There were some common questions across the meetings and I want to take the opportunity to address one of the most talked about in this month’s Voice article.

One of the key strategic imperatives was to build a more cohesive and positive culture at Viafield. What is culture and how do we do that?Culture is often a debated topic. We all agree we have one (or many), but the discussion centers on what it really is. The following are some statements I believe begin to describe what culture is in our organization:

• Culture is how Viafield comes to work every day and does things.

• Culture is the sum of values at Viafield which serve as ‘glue’ to integrate our people and achieve a common goal.

Creating a healthy and positive culture at Viafield that glues us together is critical to our future success. It’s a proven fact that organizations with highly engaged and positive employees have the best results, lower turnover, improved safety, and highly satisfied customers. Creating this type of culture is not easy and will require leadership from all employees. How can we all do our part to lead change? I believe it can be simply said as the act of treating one another with respect, gratitude, trust, and integrity. In the coming months I urge everyone to consider how they can play a role in leading a positive and cohesive culture we can all be proud of.

To jump start our culture change, the leadership team and the board held a working session in April to discuss and redefine our vision, mission, and values for the future. I’m very excited to see what develops. The results from these sessions will be shared in the coming months, as we continue to build our plans for a culture of success!

As we continue to have a busy agronomy season, safety of our team members and our customers is our number one priority. Following all our procedures is the foundation of safety, but taking the time to consider our behavior in each and every task is essential to preventing an accident. If you haven’t received a 7 Seconds to Safety card from Kevin Davis, please reach out and request one for you or your team.

Wishing everyone a continued safe and successful spring season.

-Chris

After a long wait wondering if we were going to get the spring NH3 and fertilizer season started, the weather broke with a huge opportunity for applications to happen. We have had a fairly smooth season to date and it looks very favorable for us to end the year up in fertilizer sales. We will finish behind budget on margin as we work down our inventories. That is key: to work down our inventories of fertilizer. Thank you to everyone for making this fertilizer season a good one!

Crop Protection products are going out the door as this is written. It will be interesting to see how we fare

with CPP. The pre-pays were lagging behind, like fertilizer, so I anticipate a good chemical season too. Time will tell how we end up.

Seed corn sales are up over 20% from last year. Thank you to the sales team for the efforts you have made. Hopefully with the test plots we are putting in we can increase our presence in the seed market. This is an ideal time for us to showcase what we have available through our entire agronomy department.

Technology is continuing to be a focus of Viafield. We will continue to expand our offerings and add

additional staff as needed to support both Viafield and its patrons with the latest technology needed to meet their needs.

Again I want to thank everyone for the efforts put forth. This is a very demanding time of our year and we could not do this without a genuine team effort. Please remember, even if you are having a not so good day, to smile and say “Thank You” to our customers.

Spring is in Full SwingPlanning and execution are paying off this spring season

Bob CampAgronomy Team Leader

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It’s Time...For Web TimeLast month highlighted a few HR initiatives we are working on. This month I would like to focus on the benefits and timeline for one of those initiatives, the implementation of our new time and attendance system, Web Time.

Web Time is directly related to Paylocity, therefore you will most likely never forget your Paylocity password again! Test users will work with the system next week to ensure any changes or bugs are worked through. Stay tuned as May will host training for Leaders and Team Members both.

Benefits of Web Time:

• Single sign-on (time, payroll, taxes, direct deposit, benefits…all in one spot.)• Every minute of time you allocate will be tied back to the department you allocate time to.• Your PTO balance will be on the same page you

request time off from.• Ability to edit leave requests instead of having to re-

submit for approval. • Every leader who supervises people will be

responsible for their teams time edits. • Ability to view company notifications on your

Paylocity home page.• Ability to view and utilize different sections on your

Paylocity homepage.

Anne BenningHR Leader

Cooperation Leads To SuccessWe all know what the spring season brings. Working together is key.

This spring has created some real challenges to operations within Viafield. We have had grain to haul, either by truck or rail, fertilizer (both liquid and dry) to move to many locations, and anhydrous ammonia to get to all the locations. And all this seemed to happen within a couple weeks. These actions put a tremendous strain on all of our locations.

As this is being written, we are going through a rainy spell, allowing everyone to get as caught up as possible, working on equipment or doing projects around their location. We all know that it will dry out and

the locations will be under more pressure to provide timely service to customers. Considering the amount of work that has been done so far, we still have more to do when the weather gets back to “normal”.

Our point is this: every location has had a tremendous amount of work to do, and people throughout the company, from every department have stepped up to help. We would like to thank everyone who has helped out, and a big thanks to the locations getting product delivered as timely as possible. There are too many names to get specific, but again, the extra people have been

greatly appreciated. The cooperation between locations, departments, and regions made operations run as smooth as they could and shows what can be done when we work together as a team.

As spring continues, please contact Darwin or Rick if there is anything we can do.

Rick DavisOperations

Team Leader

Darwin TabbertOperations

Team Leader

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A D D I T I O N S

Patrick Tajaran

Position:Applicator

Locations:Arlington

Start Date:March 31, 2016

Welcome

To TheTeam!

Pushing Through SpringA quick update on the financial position of your cooperative

Spring planting is here and work in the fields is moving along nicely. The agronomy business continues to move forward and is ahead of budget. It is vital that we maintain our fiscal focus and work to be as efficient as we can.

Volumes Update:Grain volume is currently ahead of last year. We have an aggressive goal of 30 millionbushels of corn and 7.5 million bushels of beans. Our soybeans goal looks attainable. Corn is going to be more difficult. Fertilizer tons are up 4,398 tons. Our custom application goal is very close to plan. The energy variance is primarily because of a poor propane season with corn coming out of the field drier than normal.

Total year to date earnings are behind budget by $695,323. Working capital continues to be good. We made a $2 million LTD payment in March which has reduced working capital this year vs. last year.

VOLUMES Mar. Actual YTD Actual Last Year Actual YTD BudgetGrain Sales (bushels) 2,641,679 18,874,043 15,847,502 21,778,593Fertilizer Sales (tons) 194 25,316 20,837 24,483Energy Sales (gallons) 610,061 5,661,487 7,412,896 6,893,423Application (acres) 868 122,372 102,711 117,466

Gross Margins ($$) Mar. Actual YTD Actual Last Year Actual YTD BudgetAgronomy Business $16,862 $2,868,224 $3,944,288 $2,660,455Energy Business $116,235 $1,330,925 $1,752,960 $1,480,412Feed Business $316,390 $1,978,733 $2,303,569 $2,431,011Grain Business $450,403 $3,302,618 $3,847,484 $3,847,484Net Earnings ($53,440) $1,000,018 $641,884Working Capital $19,595,790 $22,598,923

Steve BodensteinerCFO

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Good Practices Pay Dividends

SAFETY CORNER

Kevin DavisSafety Team Leader

Even though it doesn’t seem like it should be, we are well into the busy spring season. I want to send out a big “THANK YOU” to all team members for following the policies and procedures and wearing the proper personal protective equipment when doing your job assignments. We did have a couple of incidents that involved customers and/or outside personnel that our team members worked with and did a commendable job. I want to share these with you.

The first one was an NH3 release from a farmer using his own toolbar and applying NH3 in his field. The hitch on his toolbar malfunctioned and broke loose. The break-away valve on the toolbar also didn’t work, causing the hose from the nurse tank to tear apart and release NH3. He contacted Clermont, and a couple team members went to observe what was happening and then contacted me to

get the reporting process started. It is critical if we, or a customer of ours, has a release of 100 lbs./18 gallons or more, to report it within 15 minutes of when we become aware of the release, as it is a regulation from the EPA. The release was taken care of and the proper authorities contacted in a timely manner. Thank you Kevin Peterson and Bob Camp for working with our customer and reporting it. This kept a serious situation under control.

The other incident involved a customer’s truck driver picking up dry fertilizer at our Marble Rock facility. He told our team members what he wanted and was going back to his truck, when he slipped on the stairs and fell, breaking his glasses, bumping his head and arm. The team members cleaned him up and bandaged his arm. I want to commend Blake Pommrehn, Matt Robertson, and Nick Arndt for handling the situation the proper way and wearing the personal protective equipment as needed. Remember, anytime someone is bleeding, make sure to wear gloves for protection and then clean up and dispose of them properly.

We also had another customer come in and thank our Northwood team

members for making sure the safety water tank was filled on the nurse tank. The customer had an incident happen in the field where he took a shot to the face and used the water to save himself. Another reminder to “ALWAYS” check the water tanks to make sure they are full before taking NH3 nurse tanks to the country. Thanks again to Barnes Toresdahl and the crew at Northwood for keeping the water tanks filled as I know that customer was very thankful.

These are just a few examples of why we follow our policies and procedures and go through all the training, so we know how to handle situations when they arise. Thanks again to all of you for making Safety priority one when doing your job assignments at Viafield. Keep up the GREAT work!!

“Check out our career section of the website...we want our team membersto continue developing as Viafield grows opportunities!”

Current Full-Time openings

CareerOpportunities

• Agronomy Applicator - Eastern Region• Agronomy Sales Leader

Part-time & Seasonal openings

• Valley C-store Operator - Clermont

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Once again we are in the midst of another busy planting season at Viafield. Our AFD delivery program has been doing a great job providing fuel to our customers. The Energy Team would like to review our refined fuel ordering and delivery process. It is our goal to get fuel to our customers in a timely and efficient manner.

Monitored fuel tanks are our first priority when it comes to making fuel deliveries. We make a commitment to our monitored fuel customers that there will always be fuel in their tank when they need it, and we will not let it run empty. Therefore, it is important to note that any “Will Call” fuel orders we receive will be added onto the next available route in that area. Will Call orders will be delivered as soon as possible, but that can take a day or two because we don’t necessarily have trucks in every area every day. When it comes to a Will Call order, be sure to gather all the needed information to place the fuel order at the time the order is received to ensure the customer’s fuel ordering experience will be a pleasant one.

Below are several commonly asked questions about our AFD program and the answers to them:

WHAT IS AUTOMATED FUEL DELIVERY (AFD)?An electronic monitoring system is installed in your fuel tank. When the fuel drops below a predetermined level, based on your average fuel usage, it initiates an order. An order is then created and will be placed on a route, assuring there is always fuel in your tank.

WHAT ARE THE BENEFITS OF BEING ON AFD?The most notable benefit to having AFD is that you will no longer have to worry about ordering fuel. The monitor will do the work for you. Fuel orders are created and routed to your tank based on your average usage. We will keep you supplied with fuel with no upfront charge. With the Average Monthly Consumption Billing you do not pay for the fuel until you actually use it, so your money is no longer tied up in fuel inventory.

WHAT IS MY COST TO BE ON AFD?There is NO COST to the customer to be on the AFD program. Monitors will be supplied, installed, and maintained by Viafield.

IS A MONITOR REQUIRED TO RECEIVE A FUEL DELIVERY? There are some instances when a monitor is not feasible. In those cases, the customer is asked to call and order their fuel a couple days before the delivery is required. The delivery trucks are loaded with a predetermined amount of fuel in the early morning hours with all the gallons accounted for. A two to three day notice for fuel deliveries is recommended to assure your fuel is delivered in the most efficient manner.

HOW DOES THE DELIVERY TRUCK KNOW WHAT TO PUT IN MY FUEL TANK?A Viafield team member will profile every tank you use in your operation. The tank will be measured for accurate delivery sizes, and labeled with a tag stating the correct fuel. The GPS coordinates are recorded to enter your location into a computer generated map to assure accurate deliveries.

WHAT IF I’M EXPECTING A SUDDEN, SHORT-TERM INCREASE IN MY FUEL USAGE?In the event that you will be expecting a short term increase in fuel demand due to manure haulers, custom chopper, etc. we ask that you notify us. We will make accommodations to top your tanks off and meet your increased fuel demands.

HOW DO I CONVERT MY FUEL TANK TO WINTER FUEL AS TEMPERATURES DROP? As winter approaches we begin adding CFI (Cold Flow Improver) to all of our premium diesels. If you prefer to have subzero temperature protection call us and we will put a “hold” on your tank. This will stop any deliveries from being made until your tank reaches the desired lower fuel level. When your tank is at the level you wish to receive winter fuel, please notify us. We will switch the product in your tank and take it off of “hold”. This will create an order to fill your tank with as many gallons of winter fuel as you wish. When the weather warms up we automatically switch your fuel back to summer fuel, unless notified.

If you have any leads on customers that may benefit from being on our monitored AFD program please contact the Energy Sales Specialist in your area. If a Will Call customer needs a same day fuel delivery in an emergency, please do not turn them away. Contact Jessica Mayer, our Energy Coordinator, in Charles City and she will do her best to get the fuel order on a route. This isn’t always possible, but can sometimes be arranged. The Energy Team would like to thank all team members for their continued help and support.

A Focus On Customer Experience

Mike KuboushekEnergy Team Leader

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One of the hats I get to put on here at Viafield is that of an “assistant recruiter.” I’ve joined Anne and Jeanette for career fairs over the past few years to help draw in candidates for internships and full-time positions. And while these days can consist of 6 hours standing in one spot, speaking to one hundred plus students, they frequently bring to light a serious issue regarding our business; many young people don’t understand the value that cooperatives bring and why they should partner with or be part of one.

This past year, I’ve been doing some specific marketing towards the local 4-H and FFA clubs along with blanket radio and newspaper ads stressing the value of the cooperative system, how it benefits our communities and why we’re important to agriculture. It’s vital that the next generation of farmers understand coops are not old-fashioned, out of date or irrelevant, rather, we have the latest technologies and are on the cutting edge with modern, sophisticated facilities, products and services.

Cooperatives are a tradition nearly as old as America itself and it’s imperative to our business to make sure that heritage will thrive for hundreds of years to come.

VIAFIELD LOCATIONGetting to know our locations and team better

Grafton, IaSimilar to a few other Viafield facilities, the Grafton locations consists of a grain storage elevator in the center of town with an agronomy site just to the north of town. The Grafton Coop was established in 1906 and operated independently for 91 years before merging with Farmers Cooperative Manly in 1997. In 2006, Progressive Ag was created with the merger of Farmers Coop Northwood and Manly. Then in 2010, the cooperative joined with Northeast Iowa Coop and Farmers Cooperative Marble Rock to become Viafield.

The Grafton team is made of 3 team members in grain and 8 team members for agronomy:

Agronomy GrainCurt Schaub Darren Petersen Dave FeldtCarl Dralla Cole Feldt Terri FosterColtan Feldt Larry Gardner Ron StarkBruce Loverink Joe Paulson

Promoting Coops For The FutureThe future of the cooperative system rests on the shoulder of the next generation.

Chris MenkeMarketing Leader

Grain Storage Capacity: 1,175,000 bushelsFull Time Team Members: 8Railroad: Canadian PacificServices: Grain storage, bagged feed, LP (sales, service, delivery), refined fuel (sales, delivery), anhydrous (at location), liquid chemical and fertilizer, dry fertilizer and agronomy sales.Special Features: Fertilizer shed, and 30,000, 18,000 and 12,000 gallon anhydrous storage tanks.Hours:Monday-Friday:7:30am-4:30pm•Saturday/Sunday:Checkwithlocation

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Name: Brenda Massman

Postition/Location: Feed Accounting • Elgin Hometown: Ossian, IA Educational Background: I went to North fayette School and after graduation continued on to NICC in the Agribusiness program. Tell us about your family. I am married to my husband Jerome. We have 3 children and 3 grandchildren. What do you like most about your career at Viafield? Being able to interact with the customers and to be able to play a role in agriculture. I enjoy the people I work with also. Why did you choose Viafield? I started with the company 26 years ago. At that time I was looking for a job with versatility and that would allow me to work with the public. Viafield has given me those opportunities and more.

Tell us about your career at the cooperative and what role you play in the success of the organization?Feed accounting/customer service at the Elgin location is my main role. I help with taking feed orders and the billing of them to the customers. I assist in receiving and tracking of inventory, loading of feed, scaling of trucks as well as other areas where needed. How does Viafield provide growing opportunities for you? In the years I have been with the company and even throughout all the changes, Viafield has still allowed me the opportunities of growth and advancement. What do you like to do in your spare time? I love spending time with my family and friends, especially the grandkids. I also enjoy being at home and outside on the farm.

Team Member SpotlightGet to know your fellow team members better.

Iowa is a major beef producing state with nearly 3.95 million head of cattle. The beef industry in Iowa contributes to our economy over $7.4 billion annually and creates jobs for nearly 40,000 Iowans.

Beef feed also contributes greatly to the Viafield feed division. Mike Kirby and Mason Kolbet are our beef production specialists. Mike and Mason work with cow/calf operations, feedlots, and stockers. They do a lot of projections and closeouts to make sure our producers are making the correct economic decisions.

May is Beef MonthYour cooperative supplies area cattlemen with the best

Bill HayesFeed Team Leader

Our major products we sell to producers included Purina’s Steakmaker line and the Purina Accuration products for our feedlots. For our cow/calf producers, Purina’s tubs and Wind & Rain minerals are big movers.

If you have any questions about who the feed department can work with beef producers in your area, feel free to give Mike or Mason a call.

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May 13, 2016 - Summer Intern Kick-off - Charles City - 10:00-1:00

May 19, 2016 - Safety Meeting - Charles City - 9:30-11:30

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Copyright © 2016 Viafield, a cooperative. All rights reserved. Reproduction in whole or in part without the express written permission of Viafield is prohibited.

A number of Team Members will be celebrating their birthdays in April. Here’s your reminder to send them best wishes on their special day.

Dave Meyer May 1 ArlingtonBob Sadler May 2 Randalia Kevin Davis May 9 MaynardHaley Bliss May 10 C-storeBrady Cotter May 10 NorthwoodLarry Gardner May 12 GraftonMichelle Hurlbut May 13 C-storeKyle Wurzer May 16 RandaliaDoug Davis May 18 LamontTerry Cummings May 19 ClermontFrank Burgin May 19 ArlingtonSarah WInters May 21 RockfordChad Halverson May 23 RandaliaJeremiah Young May 24 ClermontDanny Becker May 24 ElginCharlie Hamilton May 24 WinthropJason Kraus May 25 C-storeErika Brincks May 25 ElginKevin Peterson May 25 ClermontDean Peterson May 25 RuddColtan Feldt May27 GraftonAaron Stevens May 30 Northwood

AnniversariesTeam Member Hire Date Years Location

Marv Tyler May 1, 2001 15 Maynard

Curt Caley May 9, 2005 11 Elgin

Gary Benson May 26, 2009 7 Arlington

Mason Kleitsch May 9, 2011 5 Maynard

Ryan Smith May 14, 2012 4 Manly

Jim Schweitzer May 7, 2013 3 Winthrop

Regina Hoffman May 13, 2013 3 Randalia

Tim Hanna May 6, 2014 2 Northwood

Blake Pommrehn May 26, 2015 1 Marble Rock

Happy Birthday

Upcoming Events

Without continual growth and progress, suchwords as improvement, achievement, andsuccess have nomeaning.

Sunday, May 8th is

Mother’s Day