As we approach fall harvest, we are busy getting our bins empty for what appears to be a good

fall harvest. Transportation out at harvest has always been a challenge. The time to move corn out

to make more bean room will be less this year because of the later planted corn. We will make

every effort to keep grain moving out.

For us to ship grain, we must own the grain or have title to it. We get ownership by you selling

cash grain or by you delivering on new crop contracts. We also offer other programs to give us title

to corn and soybeans and still allows you the opportunity to sell later.

For corn, we will offer a Basis Contract and Minimum Price Contract. The next two articles will

detail them.

For soybeans, we will offer a Price Later Contract. An article to detail this program is in this

newsletter.

Feed milling and delivery is an important part of our business. For those who use our Feed Mill

services, we will offer Feed Bank storage based on your past history. OPEN STORAGE:

We will continue to offer Open Storage on corn, soybeans and milo. When grain stays in open

storage past June the next year, it limits us to be able to empty our bins for the next fall harvest.

Therefore it is necessary for us to institute a new policy for fall grains. The new policy is:

Open Storage corn, milo and soybeans will convert to Price Later Contracts on June 1 the

following year. Price Later allows you the opportunity

to price your grain on your terms. Price Later gives

the title to the grain to the Coop so we can clean our

bins for the next harvest. Price Later fees will be 4¢/

bushel/month. On May 1, you will receive a letter as a

reminder that you have open storage grain and the grain

will convert to Price Later on June 1. This is the only

Grain Policy change necessary for this fall. If you have

any questions, please call.

Fall Harvest Update

Corn Alternatives: Minimum Price Contracts By: Judy Bentley, Grain Merchandiser

An alternative to a Force Sale or Basis Only Contract, would be a Minimum Price Contract.

This ties your New Crop Contract to a call option. For example, using today’s price on a July

option…

Dec Corn CBOT Today ................ $3.29

Less Basis ................................................ -.44

New Crop Contract Price ............ $ 2.85

3.50 July Call Option Cost ................. -.50

Net Price Guaranteed .................... $ 2.35

However, if you think corn is going to go down more, you can price your new crop contract to-

day and establish your option cost at a later date. (The cost would have to be established before

payment is made.) Fifty cents sounds like a lot of money but remember this allows you to stay in

the market until around June 15th and you get your money up front.

Open Storage grain: Storage costs from Oct 15 to June 15th is 32¢ (8 month @ 4¢/bu). Operat-

ing interest for 8 months is 16¢ (2¢/month @ 8%). Interest and storage total 48¢/bu. In contrast

to the minimum price contract, storage grain has no guaranteed floor price.

There are other examples using March & May options. The costs are less but so is the time

frame to complete the transaction.

*Minimum price contracts will have to be done in 5,000 bushel increments.

August 2009 www.leroycoop.coop

LeRoy Cooperative Assoc.

OPEN STORAGE RATES

Grain Per Month 3-Month Minimum

Corn 4¢ 12¢

Milo 4¢ 12¢

Beans 5¢ 15¢

By: Lyle Fischer, General Manager

Inside this issue:

Basis Contract 2

Price Later for

Soybeans

2

Cattle Supplements 2

Agronomy Notes 3

Fall Fertilizer &

Chemicals

3

New Faces 4

50th Anniversary 4

Interstate Battery 4

Grain Bins 5

Tire Shop/Seed

Wheat

6

PO Box 248

505 E. 6th

LeRoy, KS 66857

620-964-2225

888-964-2225

Westphalia Office

610 Warne Street

Westphalia, KS 66093

785-489-2521

877-489-2521

Gridley Office

312 Main Street

Gridley, KS 66852

620-836-2860

877-836-2860

Last year, we offered a Basis Contract on Corn and will again this year. It will give us title to the corn and give you some extra time to price it. We will lock in a basis under December CBOT and you will have until November 20, 2009, to price your corn. Pricing must take place during Board of Trade trading hours. There will be no storage or other fees with the Basis Contracts. Keep in mind there is no guarantee the December CBOT corn price will improve compared to a harvest price. Quantities on the Corn Basis Contract could be limited.

Basis Contract

Page 2 LeRoy Cooperative Assoc.

For soybeans, we must also have title to the grain to ship it. We will offer Price Later on soy-beans this fall. The Price Later fee will be .04 cents per month with no minimum storage fee. You will have as much time as you wish to price your soybeans. Please feel free to ask any ques-tions you might have.

Price Later for Soybeans

Price Later Fees Beans 4¢ per month

No Minimum Fees

Cattle Supplements

Quality Liquid Feeds

QLF Super 40 has been an excellent lick tank feed

for supplementing cattle on pastures and a protein

source for wintering cows. This fall we are introduc-

ing another QLF lick tank feed for pasture supple-

mentation. Pasture Performance 35 might help with

some consumption issues compared to the Super

40. The price portion will be about $40.00/ton less

than Super 40. Supplementing with Super 40 or Pas-

ture Performance 35 and free choice minerals is the

convenient and economic way to meet your cow

herd’s needs. Now is the time to start filling tanks to

keep your cows body condition good going into fall

and winter.

Rangeland Tub Special!!!

*********** $10/Ton Discount on 4

Tubs $20/Ton Discount on 8

Tubs

Rangeland tubs are another convenient way to

supplement cattle on pasture. Rangeland tubs

are low moisture, cooked molasses supple-

ments in a biodegradable fiber or plastic

containers. It is consumed by licking only, as

the surface softens by moisture in the air and

animal saliva. Tubs deliver the protein and

energy your cattle need. We stock all natural

17% and a 30-13 tub.

Rangeland Tubs

The Lick tank advantage:

Ultimate convenience

Several small meals across the

day

Opportunity for less dominant

animals to come to the feed

unchallenged

Virtually no waste

Intake can change as conditions

dictate.

By: Judy Bentley, Grain Merchandiser

By: Judy Bentley, Grain Merchandiser

Page 5 www.leroycoop.coop

Grain storage and handling grain at harvest with fast elevator legs is one of our major assets. The Board has realized that as more corn acres are planted, the need for more grain space has increased. This summer the Board ap-proved adding another concrete bin in LeRoy. The bin is located north of the other three concrete bins. The bin is 60’ diameter and 140’ tall. The capacity is 340,000 bushels. Plans are to have it ready by the middle of Septem-ber. Since 2001, the Coop has added 1,130,000 bushels of stor-age capacity including this new bin. With this addition, our total storage capacity will be 2.3 mil-lion bushels.

Grain Bins

2001-Gridley 40,000 bu bin

2001-Added 3rd tank 250,000 bu.

Concrete @ LeRoy

2003-2-50,000 bu bins & Elevator Leg,

Gridley

2005-2-200,000 bu bins & Elevator Leg,

Westphalia

2009-New Concrete

Silo Construction @

LeRoy-340,000 bu.

We’re on the Web

www.leroycoop.coop

LeRoy Cooperative Assn.

P O Box 248 - 505 6th St.

LeRoy, KS 66857

Temp-Return Service Requested

LeRoy Cooperative Assoc. Page 6

It’s harvest and school time again. This is the time to check your vehicles over

to see if they need tires and maintenance to get them ready. We have a new tire alignment machine at the LeRoy Tire Shop location. This

machine is able to handle larger vehicles. Call us today to schedule your alignment,

oil and lube service, brake service, shocks and struts. We also carry new and used

tires, such as, Hankook, Titan, Maxxis and other brands are available to order.

LeRoy Tire Shop: 888-964-2288 Westphalia Tire Shop: 785-489-2216

INCENTIVE™ RTA® Broad-spectrum protection against major wheat diseases.

Incentive RTA (Ready-to-Apply) boosts wheat yield potential by protecting seeds and

seedlings. Disease protection is critical for optimal root development and stand

establishment. Incentive RTA provides full or partial protection against major early-season

seed-and soil-borne diseases of winter wheat.

Features and Benefits:

Mazimizes yield potentail due to early season disease protection.

Provides optimal seed protection without additional products.

Contains mefenoxam for superior control of Pythium damping off.

Dual modes of action provide broad-spectrum disease control across all four classes of

fungi.

Superior root rot suppression.

Excellent crop safety, even at high application rates.

BULK SEED

2137 - Santa Fe - Endurance