harvest better than expectedharvest better than expected craig hebrink • pg 4 morton ......

HARVEST BETTER THAN EXPECTEDCraig Hebrink • PG 4

mortonServing You With a Smile • PG 12-13

THE PERFECT STORM FOR PROPANEPat Macht • PG 16-17Photo Credits: Farmward employees, Todd Broberg and Jacob Honzay

2FARMWARD INSIGHT WINTER • 2019

Dave StukCEO

O: 507.249.3196

C: 507.381.2331

Morgan

WITH HOPE AND ENTHUSIASMTAKING OWNERSHIP

You may have heard different companies refer to their Vision or Vision Statement as they talk about what they desire to achieve in the next 3-5 years. They use the statement internally to inspire employees to work toward the organization’s vision of the future and sometimes, it can be a pretty ambitious statement. However, no matter how ambitious it may seem, it gives employees a clear picture of what they are working toward every day.

As a relatively young company (as Farmward), we have worked hard over the last two years to establish a culture of unity in our employee group and we felt it was time for our organization to develop our own vision statement. With that said, it only made sense to engage our employees in that process, as they are the face of our company and live and breathe Farmward every day.

The employees who participated took ownership in the process by having in-depth discussions around what success looks like to them, what they take pride in doing in their jobs every day, and how each of them contribute to that success. These discussions allowed them to identify what our employees are passionate about. What stood out was the importance of building and supporting communities, deepening relationships and having the backs of their customers and peers. With that said, the vision statement they created encompasses all those desires . . . Strengthening Communities and Relationships One Farm at a Time . . . We’ve Got You! And, it is certainly a vision we all believe in and are rallying around to achieve.

Through those same discussions, they established Farmward’s core values, one of which is ownership. As a core value, the type of ownership we believe in is one that means being accountable; accountable for success as well as failure, in order to foster a culture

of growth and learning. We believe by taking ownership we can continue to deliver better solutions for the future. With that, we learn to embrace mistakes and failures as true opportunities. We learn to share in our success. We learn to be accountable to each other. And, we are willing to learn from one another, because better solutions can only come from experiencing obstacles and failures together.

As an organization, our vision is one of hope and enthusiasm that no matter how hard things have been in the past, we can persevere together. As Winston Churchill once said, “Success consists of going from failure to failure without loss of enthusiasm.” We know that you have faced, and continue to face, a lot of adversity. But, as we look forward, it feels like there is hope. Even though the growing season didn’t go as smooth as we would have all wanted, you persevered and good progress was made in getting fall work completed.

Our employees also worked really hard this fall. A long drawn out harvest made for many long days and late nights. But again, just as you, they persevered by taking ownership in what they are passionate about, Strengthening Communities and Relationships One Farm at a Time . . . We’ve Got You!

From all of us at Farmward, AgQuest and Northland Capital, thank you for your continuous support. May your 2020 be a safe and productive year.


Calvin AaronsBoard Chairman

C: 320.212.0340

WORKING TOGETHER THROUGH ASTRESSFUL HARVESTWhat a fall! There’s really no other way to describe it! The late season, wet field conditions, high moisture levels, and propane shortages, made for a very stressful harvest for patrons and employees alike. Thank you to our patrons for being patient and understanding as our employees worked long, hard hours to make sure we kept our elevators open, our spreaders spreading, and our fuel and propane trucks delivering. I’d also like to thank our employees for their compassion and caring as our patrons fought through this difficult growing season. As Dave mentioned in his article, Farmward is about relationships and our employees truly believe in working together to build and strengthen those relationships, one farm at a time. As always, with a little cooperation and perseverance we all made it through and hopefully we can look back now on a safe and productive harvest.

Networking and learning opportunities for your boardAs we move into winter, it’s “meeting” time for your Farmward board members. The regional cooperatives, such as CHS, Land O’Lakes and various others, will be holding their annual meetings. We will also be attending several educational events. Each event gives us an opportunity to network and learn about new ideas so that we can continue to be progressive and relevant. They also help us stay abreast of what is happening in the industry and the co-op world, as well as strengthen relationships with industry leaders and neighboring cooperatives.

We will also use this “downtime” to do some strategic planning with the management team. Strategic planning allows us to evaluate our progress over the past year and realign our direction and goals for the future. This is time well spent and helps guide our decision making in the board room.

Annual meeting set for December 18thVoting members of Farmward are invited to attend our annual meeting taking place at Jackpot Junction on Wednesday, December 18th. An invitation and RSVP postcard will be mailed to you, if it hasn’t been already. I encourage you to attend, as it is a great opportunity to have a good meal, visit with old friends and neighbors, and be an active member in your cooperative. I look forward to seeing you there!

With the holiday season just a few weeks away, I want to thank you for your continued support of Farmward over the past year and wish you a very Merry Christmas and a Happy New Year!


Craig HebrinkVice President of

Grain & Feed

O: 320.329.8377

C: 320.894.8796

[email protected]

Renville/Morgan

With the 2019 harvest behind us, we want to say Thank You. As producers, you experienced one of the most challenging growing seasons in recent years. It too, was a challenge for the Farmward Team as they put in numerous hours and did the best that they could in assisting you. It took everyone working together to make this happen and we are grateful for your support and patience.

Going into harvest we expected to receive fewer bushels than last year based on the number of acres that did not get planted and also from yield estimates. For soybeans our receipts were lower than last year by about 23%, which was slightly better than our expectations. Corn receipts ended up being very close to what we received last year. Overall, it seemed like corn yields were better than what most people anticipated. Because we started the fall with lower inventory than last year, along with some rail and truck shipments that were made during harvest, we only piled corn at our Clements location.

The quality of this year’s corn crop is not to the same level that we have become accustomed to. Because of the higher moisture and lower test weight that it had when harvested, we are seeing more foreign material in the corn. This will mean that keeping a close eye on your stored corn is a very high priority. If you haven’t already done so, you should pull the centers out of your bins. This will lower the foreign material and allow you to properly aerate the bin. Even after doing this, make sure that you are checking your bins often. Don’t let all the hard work you put into growing this crop get reduced by having your corn go out of condition.

Feed volume up year-over-yearThe feed division is off to a good start in fiscal year 2020. Year-over-year feed tons are up 52%. The growth is coming from the most recent merger, as well as increased volume from current and new customers. This volume is keeping our staff very busy and it is allowing us to utilize the capacity available at the mills in Morgan and Renville to service this business.

We are upgrading some of our delivery equipment in our feed division. Two new semi tractors have been placed into service and two new trailers will be coming this winter. Last year we started the process to replace some of the units that have logged many hours and delivered many tons of feed. These upgrades are a continuation of a priority to have good, reliable equipment that allows us to effectively and efficiently service our customers.

We have so much to be grateful for. May the joy of Christmas fill your hearts and homes during this time and into 2020.

HARVEST BETTERTHAN EXPECTED

REMINDER!Farmward prefers to have deferred grain contracts issued by December 26. Please plan accordingly. This will allow us to have time to prepare checks for payment on January 2, 2020.



You may have noticed different pay amounts on your last statement. This is because we offer extended terms for fall applied fertilizer. The due date for fall applied fertilizer is January 15, 2020. You will see this on your next two statements as well.

The standard payment terms are as follows:

• Note that the due date printed (15th of the month) in the upper right corner of your statement is for regular purchases. That amount is listed following Pay:

• The amount listed following Total Balance: includes any fall applied fertilizer in addition to what is due by the 15th.

• Additionally, specific due dates are indicated next to the detailed listing of each invoice on the statement.

As a reminder, we continue to offer a 5% discount on energy products if paid by the 15th of the month following the month of service (*this is not available for credit card payments).

We are fortunate to have such loyal customers who are committed to keeping accounts current, thus continuing to do their part in keeping Farmward a financially strong company. We are proud of the customers we have the privilege of partnering with and we congratulate you on your successful operations. Thank you for your business and diligence in making timely payments!

As always, if you have any questions on your statement, account or need to discuss payment options, please give me a call at 800-962-7007.

Blessings to you and your families in the upcoming holiday season and gratitude to all!

Carla HamreCredit Manager

O: 800.962.7007

[email protected]

Renville

STATEMENTSUNDERSTANDING YOUR

Photo Credit: Farmward Employee, Clete Ludewig


Dennis SchreierVice President

of Agronomy & Energy

O: 507.249.3196

C: 507-227-0179

[email protected]

Morgan

ORGANIC FERTILIZERTHE VALUE IN QUALIT Y POULTRY LIT TER

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Using poultry litter as a crop nutrient is becoming more and more popular among our customer base. In our northern territory, Farmward has been spreading litter for quite some time and those customers have seen the benefits it provides to their soil firsthand.

Unfortunately, there is a great deal of misinformation out there about the value of poultry litter. We want to bring some integrity to the product and so making sure we are providing you with quality litter is important to us.

If you’re not familiar with the benefits of poultry litter, it can provide your soil with both the macro and micronutrients it needs, such as phosphate and potash, and more important, sulfur, zinc, manganese, iron, boron, and many other micro nutrients. It also builds organic matter, which increases nutrient holding capacity, improves water infiltration and reduces erosion.

Using poultry litter as a crop nutrient isn’t just a one-year investment, you will see returns two years out and longer. We have found the best payback in yield comes the second year. If nutrient levels are really low, we see a payback for half the cost the first year. With that in mind, it’s good to get your acres covered at least once every few years.

As we continue to analyze data and learn more about the nutrient value of litter, our intention is to expand our offering. Currently, we have made an investment in Artex spreading equipment (manufactured in Redwood Falls) and have multiple crews that allow us to service a wide area. If you’re interested in trying poultry litter, keep in mind the product is in high demand and it’s important that you get your orders in early.

I encourage you to contact your Farmward Account Manager to get your order placed and to learn more about the benefits of poultry litter.

DO YOU HAVE LITTER TO SELL?Farmward has demand for additional litter, if you are interested in selling your litter, please contact Dennis Schreier at 507-227-0179.

Photo Credit: Farmward Employee, Gerry Kodet


Jim BoyleCrop Nutrients &

Crop Protection Manager

O: 507.249.3196

C: 507.227.1921

[email protected]

Morgan

The 2019 growing season has seen many challenges ranging from just trying to get the crop in and prevent plant to high moisture levels at harvest. We heard many times from growers that they were looking forward to putting 2019 behind them. On a positive note, we are starting out the 2020 season with encouraging momentum as many growers harvested better than expected corn yields, which allowed us to experience strong demand for fall fertilizer application. Acres and tonnage applied are up significantly year-over-year. Even with the later than normal start to harvest, the Farmward agronomy team did a great job of covering more acres in less time to service your needs. The capacity at which our growers can plant and harvest a crop when given appropriate weather, is incredible. This reinforces the necessity for us to plan together, so when the conditions are right, we both succeed in executing at the highest level possible.

Crop nutrients – industry concerned with distribution Looking to spring, the crop nutrient industry is concerned about the river’s capacity to move the needed spring tons for 2020 due to damage from flooding in 2019. Knowing this, we will be watching to see what percentage of fall fertilizer is applied nationwide. This will give us an indication of what the demand will be on the river market as well as the rail and truck supply chain this spring. The market is experiencing strong demand for nutrients worldwide and we will be looking to review ending stocks and forecasted demand for further guidance going into spring.

Crop protection – more stable environment moving forwardAs for the 2020 crop protection season, we are not going to experience the effects of sanctions with China on the majority of the chemicals we utilize as we did in 2019. Basic manufacturers have diversified production plants away from China as they are not seen as a fair and equitable trade partner for many of our industries, including agriculture. This will help provide a more stable environment moving forward on many of the inputs we rely on each growing season.

Grower rebatesIn 2020, we will see a renewed interest from the basic crop protection manufacturers on grower rebates. You may be receiving advertising on Bayer® Plus Rewards and Corteva™ Cash, to name a few. The renewed emphasis is due to more active ingredients coming off patent and their ability to fight off lesser priced generics in the marketplace by utilizing grower rebate programs. Another reason is to incentivize growers to utilize more of their product throughout the growing season. Your Farmward Account Manager will understand the crop protection programs available to you and will help assist you in making the best decisions based on your needs.

2020 CROP YEARMOMENTUM HEADING INTO THE

To maximize your farms potential, ask your Farmward Account Manager about these products and services:

• Soil Sampling• Fertility Recommendations• Variable Rate Fertilizer Prescriptions• Trait Options• Variable Rate Planting Prescriptions• In-Field Scouting• Crop Protection Programs• Crop Enhancement Products• Yield Analytics

With the wide variety of options available for your farming operation in 2020 and beyond, it is challenging to know and trust what are the best solutions for your individual needs. Farmward is here for you. Utilizing the expertise of your Farmward Account Manager, we can assist you in making the best decisions for the success of your operation.

Thank you for your continued support and have a wonderful holiday season!


Each year we are faced with a number of key decisions which can drastically impact your bottom line for the upcoming year. Many of these decisions are made now, months ahead of planting and implementing them. One of the most important decisions we make is picking out the right seed. There are many influences on how we ultimately make these decisions. Some things that come to mind include:

• What was your top yielding hybrid from 2019?• What hybrids are your neighbors bragging about in the coffee shop?• What hybrids are seed companies promoting from their test plots?• How did county plots perform and other third party plots?

All these sources of information influence our decisions. With 2019’s growing season throwing yet another curve ball into this, once again it is hard to truly determine the performance of hybrids when the same hybrid was planted on May 5 and June 5. In many cases this year, I have had growers love the performance of a particular hybrid and then the next guy will never plant that same hybrid again due to poor performance. Fortunately, at Farmward, we have thousands of acres of information in our Climate FieldView™ precision platform, enabling us to look at multiple years of information on hybrids to separate fact from fiction and find out what worked, where it worked, and why it worked. Many of the hybrid’s, we are recommending for 2020 are hybrids that we have planted for multiple years and we understand their strengths and weaknesses inside and out. A solid package of 3-4 proven hybrids in combination with 1-2 newer hybrids will set us up for a successful 2020. Right now, demand on some of these hybrids may exceed supply as some companies have begun transitioning to newer hybrids. With that being said, work with your Farmward Account Manager early to ensure you get the hybrids you want to plant.

Soybeans – understand your yield limitationsOn the soybean side of things there are a lot of options to pick from for 2020. Early plot performance has shown that if you’re planting the best 3 to 4 hybrids within each trait platform you will have good yields. Whether it’s Roundup Ready 2 Xtend®, Enlist™, or LibertyLink® GT27™, it may seem difficult to understand and pick which platform fits your operation best. When considering which platform to plant in 2020, you must understand your most yield-limiting factors. IDC, white mold, SDS, weed pressure, application restrictions, surrounding crop, and herbicide date restrictions, all should be taken into consideration when making your seed selection. The Enlist™ and LibertyLink® GT27™ offer a lot of flexibility in herbicide application and weed control, but might not be the best choice for a particular field due to other yield limiting factors. Work with your account manager to understand the pros and cons of each system to find the best fit for a successful 2020.

Happy Holidays!

Matt PietigSeed Division Manager

O: 507.249.3196

C: 507.430.2127

[email protected]

Morgan

DON’T LET ONE YEAROF DATA INFLUENCE YOUR SEED DECISIONS

9FARMWARD INSIGHT WINTER • 20199FARMWARD INSIGHT WINTER • 2019

With the merger between Farmward and Equity Elevator, we have continued to manufacture feed at the mill in Wood Lake. However, we have made some changes in operations and currently, we are only manufacturing feed at Wood Lake on Tuesdays and Fridays. With that, growers need to call in advance to place your feed orders – this goes for all of our feed mills. We would greatly appreciate at least 24-hour notice of your feed needs. Lead time helps us be more efficient in our manufacturing and delivery and allows us to serve all of our customers better.

With winter here, we would also like to ask that you to make sure you remove snow from your driveways, yards and feed bin areas. Getting stuck or not being able to maneuver our feed trucks in your yard makes our feed truck driver’s job very hard. Again, it affects our ability to be efficient in our delivery process and effectively serve all our customers.

Does African Swine Fever pose a threat to your herdAfrican swine fever (ASF) has been spreading across Europe and Asia since 2007. In the last several years, the virus has been identified in more than 50 countries that encompass 75% of all the pigs in the world. Thankfully, it has not yet reached the United States. However, the risk is real and producers cannot be complacent in their biosecurity practices.

The virus, which is only contagious in pigs and wild boars, spreads through direct contact with infected animals, living or dead, or objects that have touched infected animals. To-date, there are no approved vaccines. The only way to get rid of ASF is to kill infected herds. But while pigs on farms can be destroyed and replaced, the disease persists in wild boar and feral hogs, as well as in meat, which is increasingly sold abroad. The transportation and trade of infected pigs and contaminated pork products are the primary transmission mechanisms and the reason why we have seen such widespread distribution, with more than 70% of the spread of the virus coming from contaminated vehicles. If the virus were to spread to the United States, it would be absolutely devastating, not only to our $20 billion-dollar U.S. swine industry and the 550,000 American jobs created by the industry, but to other agriculture commodities as well.

Following the recent spread of ASF in Asia and western Europe, a team of researchers from around the world, including some from the University of Minnesota College of Veterinary Medicine, set out to measure the risk of ASF entering the United States through the smuggling of pork products in air passenger luggage. Their findings were recently published in the journal Scientific Reports.

The study found:

• the risk of ASF arriving in the United States has nearly doubled since the ASF epidemic began in 2018;• five specific airports account for over 90% of the potential risk: Newark-New Jersey, George Bush-Houston-

Texas, Los Angeles-California, John F. Kennedy-New York and San Jose-California; and• there’s a high probability that the ASF virus is already reaching the U.S. borders through smuggling of pork

products; however, likely due to the work of United States Customs and Border Protection, the virus has not entered the country.

Andres Perez, director of the Center for Animal Health and Food Safety and co-author of the study, says, “If ASF were to enter the United States, its spread would cause immense economic damage to the pork industry and food production more broadly, leading to the loss of billions of dollars for swine producers.”

The study’s findings will help support decision-making for disease surveillance strategies in the U.S. swine industry and transportation hubs. The University of Minnesota Center for Animal Health and Food Safety will continue working closely with Minnesota and U.S. swine veterinarians and producers to increase preparedness and awareness to prevent or mitigate the impact of a hypothetical ASF epidemic.

Wishing you a very Merry Christmas and thank you for allowing us to serve your feed needs!

Jeff MikoschFeed Division Manager

O: 320.329.8377

C: 320.894.8797

[email protected]

Renville

HELP USSERVE YOU BET TER


The grain markets have a huge appetite for news to which they can react to. That news can come in many forms; USDA reports, trade agreements with foreign countries or lack thereof, weather, anticipated yields, delayed planting or delayed harvesting, crop quality, export and domestic demand and so on.

The USDA supplies monthly reports to which the market eagerly anticipates the information they put out to trade on. While some (or many) in the grain industry debate the validity of these reports at times, they are what the market has to focus on for trading grain, whether you agree with them or not. As a producer you have to be prepared to use these reports to your advantage regardless if they are deemed a bullish or bearish report to the market. Being wide open to the market with your grain is risky business. The grain marketing advisors’ at Farmward can help you manage that risk so a perceived bad report does not dramatically affect your bottom line.

This can be accomplished in different ways, as Farmward has several marketing alternatives for you to choose from to manage risk. One of these marketing alternatives is a simple guaranteed minimum price contract (GMP). While it may not seem to be very exciting, the GMP is a good way to put a floor in the market while leaving the upside wide open for you to participate in a market rally, should one occur.

Another way to manage risk is through your own trading/hedging account. Farmward is a branch office of both Country Hedging Inc. and Advance Trading Inc. with licensed brokers on staff to assist you in managing market risk. Contact any of our grain marketing advisors for information on how to open your own account.

Keeping your eye on market movers As we’ve talked about before, grain marketing can be an emotional ride. It’s our job as trusted advisors at Farmward to help manage the emotions of the marketplace and help you make decisions for your operation based on facts. While the marketing conversation tends to revolve around influencers like we mentioned above (yield reports, weather forecasts and demand), there are certainly other market movers that should be monitored throughout the year. One of those is the current position of investors, or managed money funds in the grain and oilseed markets. The fund position can be monitored weekly through the Commitment of Traders data released every Friday afternoon, and can be followed easily by reading Farmward’s Weekly Corn and Soybean Recap where we include charts from the CME Group website that show the current direction of the managed money fund positions, as well as a comparison to historical positions. Farmward’s Weekly Corn and Soybean Recap can be found on our website or by downloading our Farmward Cooperative mobile app and allowing push notifications.

Jalen PietigGrain Marketing Advisor

O: 507.249.3196

C: 507.430.4307

[email protected]

Morgan

Joe HennenGrain Origination Lead

O: 320.329.8377

C: 320.212.9457

[email protected]

Renville

MANAGING YOUR RISKWITH INFORMED DECISIONS


The first chart below from CMEgroup.com shows the net managed money fund position for corn every week the past three years along the yellow line. The net position is listed as the number of 5,000 bushel futures contracts net long or short. Clearly, there has been large swings in the corn fund position nearly every year, sometimes from extremely short to exceptionally long. It’s all hindsight now, but this summer’s rally was stalled out again after the funds reached a near-record long position, similar to rallies in prior years. This is shown in the second chart, a continuous December corn futures chart for the past three years. Monitoring the fund position isn’t a perfect tool, since just like a corn futures chart, we don’t know when that line is going to top out and turn back lower, but there has certainly been correlation shown between the directional movement of futures prices and the directional movement of the managed money fund positions. Because of that, this factual information can be used as another tool to help your farm market grain at profitable times of the year. For example, when the funds are at or near record long levels, one may lean towards marketing tools that limit downside exposure if the funds sell-off and regress back to normal levels, especially if there are profits to be locked in and/or the operation can’t afford lower prices in the future.

Wishing you and your family a joyous holiday season!


Established in 1884, the city of Morton, lies in the beautiful and scenic Minnesota River Valley. Lining the southern edge of the city is the Farmward grain, agronomy and energy facility, a site that has a rich history of serving farmers in that area for many years.

Purchased by Harvest Land Cooperative in 1977 from GTA (Grain Terminal Association), the grain facility today consists of steel upright storage with a total capacity of 2.6 million bushels, along with 2- 20,000 bph corn receiving pits, 2-10,000 bph soybean receiving pits and a dryer capacity of 7,000 bph. As far as the history of the grain facility, some additional/new storage was added in the ‘80s. In 2000, the wood annex and feed mill were demolished, which made way for new construction in 2013 that consisted of 1.5 million bushels of storage, 2 receiving pits and the 7,000 bph dryer. In 2016, a new scale was also added.

A bulk fuel plant was added in 1994, consisting of 30,000 gallons of propane storage, 90,000 gallons of diesel storage and 20,000 gallons of gasoline storage. The plant serves as a filling site for Farmward delivery trucks.

On the agronomy side, the location is home to 30,000 gallons of NH3 storage, which was added in 1978. There is also a small seed and crop protection storage shed which is primarily used for additional or specific product needs. During the spring season, Morton has temporary liquid fertilizer storage, however, the majority of their fertilizer business is tendered and applied directly out of Springfield or Danube.

The employee group, although small, comes with experience and dedication to meet your needs.

Jake Gatzlaff has been with Farmward for 7 years and manages the location. Jake is a vital part of the grain operations and is very conscientious in making sure your grain is handled properly and kept in condition.

Tim Woelfel has been with Farmward since 1990 and brings a wealth of knowledge and experience on the agronomy side. Having worked for Farmward at multiple locations, he knows the area and the business like no other.

Alen Helmer, though young and fairly new to Farmward, brings energy and enthusiasm in helping customers with their day-to-day needs. Whether it’s dumping your grain or filling up your pick up bed with seed or crop protection products, he does it with a smile.

Also, Morton welcomes Grain Marketing Advisor Mike Kohout one day a week, as he travels from Danube to give his insight to farmers who need help with their marketing plan. These employees, along with returning seasonal employee Patrick, continue the friendly, community based culture of the Morton location.

MORTON


SERVING YOU

WITH ASMILE


The Wall Street Journal reported in October that major manufacturers are once again emphasizing equipment leasing to keep sales moving.

In today’s tight ag economy, every dollar counts. That is why leasing is a great tool to update equipment. With very little down, terms up to 84-months, and purchase options as high as 35%, leases allow for the acquisition of equipment on the lowest payment. Preserving cash and managing cash flow – leasing is the perfect solution to update equipment today.

The Equipment Leasing & Finance Foundation released their U.S. Economic Outlook update. The Agricultural Momentum Index improved from 97.9 in September to 98.7 in October, the highest level since late 2018. Shipments of farm machinery and equipment rose 3.2% in August. Wholesale trade of miscellaneous durable goods improved .07% in July. Investment in agricultural machinery fell, but eased 0.3% from one year ago. Overall the index continues to point to improved agricultural machinery investment growth over the next 3-6 months.

Leasing also weighs in on the used equipment market. Banks may not finance used equipment, and those that do may have credit and collateral requirements. Leasing enables the ability to upgrade equipment or machinery, keep cash on hand and structure payments that work with budgets.

Leasing increases sales by delivering equipment to customers who otherwise might not be willing to buy in a down market.

THE PUSH FOR LEASING

Paul PfannensteinVice President

of Business Development

Northland Capital

O: 800.471.2122

C: 320.309.6220


Pat MachtEnergy Division Manager

C: 507.430.2233

[email protected]

Fall is normally an enjoyable time of year – the cool weather, the colorful trees, and the sights and sounds of farmers harvesting their crops after a long growing season. However, we would be lying if we said we enjoyed this harvest. As I’m sure you can relate, it was stressful - especially when it came to propane procurement. Unfortunately, late planting and wet conditions across the Midwest didn’t give corn the opportunity to dry down before harvest, putting a huge demand on propane for drying. In addition, we experienced below normal temperatures, which elevated demand even more. This “perfect storm” was just too overwhelming for our pipeline system to keep up. Thankfully, due to a little foresight or luck (or maybe a little of both), Farmward added more storage right before harvest with one tank placed at Danube (30,000 gal.) and one tank placed at Wood Lake (18,000 gal.). We also hired an additional delivery driver, which couldn’t have come at a better time considering our backup driver was doing transport duty 24/7. In addition, we had 31 rail cars of propane brought in to our terminal at Springfield and we utilized some outside transports to help us truck propane in from terminals as far away as Greenwood, Nebraska, and Conway, Kansas. Even more significant in keeping us going, was our staff! We cannot say enough about the effort and dedication they showed in serving our customers. Whether it was sitting in line for hours on end at the terminal, making deliveries at 11:00 at night, or making sure equipment was operating properly, they all did a fantastic job in exceeding expectations. Although it was touch and go at times, all these factors played a huge role in keeping our customers supplied during harvest.

Protecting your equipment from gelling and filter pluggingSwitching to a winterized diesel and using a cold flow improver during the coldest months of the year can be an important move in protecting your equipment from gelling and filter plugging. This problem happens when cold temperatures cause paraffin wax, which occurs naturally in No. 2 diesel, to solidify and bind together into larger crystals that can’t flow through the filter. While No. 2 diesel has a cloud point of 14 degrees Fahrenheit, that number is amplified by the biofuel content, which can contribute to higher gelling temperatures.

With below normal temperature this fall, we started seeing equipment gelling up about mid-October. At that point, we immediately went to a cold flow improver (CFI) as an additive to the No. 2 diesel. The CFI breaks up the paraffin wax crystals into smaller parts to enable it to pass through the filter. Typically, a CFI is effective down to about zero degrees Fahrenheit.

THE “PERFECT STORM”FOR PROPANE


Adding a CFI is the first step to protecting your diesel against cold-weather gelling and filter plugging. However, as temperatures continue to drop, you should move to a No. 1 diesel, which is free of paraffin wax. You don’t want to make the switch all at once, though. It’s important to transition your equipment from a No. 2 to a No. 1 diesel gradually. Here are the steps you’ll want to take:

• Once the temperature falls below 35 degrees Fahrenheit, use a blend of about 70 percent No. 2 diesel and 30 percent No. 1, along with a CFI. For an even better solution, try Cenex Roadmaster XL® seasonally enhanced or Ruby Fieldmaster® seasonally enhanced premium diesel fuels, which are enhanced not only with a CFI, but also a complete additive package.

• As winter sets in, blend 30 percent No. 2 with 70 percent No. 1, continuing to mix in a CFI. For enhanced low-temperature operability, try Cenex Wintermaster® winterized premium diesel fuel. Formulated with the optimal diesel fuel blend for the cold, Wintermaster also contains a complete additive package designed to keep engines protected.

• Anytime the temperature drops below -30 degrees Fahrenheit, use straight No. 1 diesel. To keep additives at proper levels, try No. 1 diesel fuel with Cenex® premium diesel fuel additive.

We encourage you to contact one of our Energy Sales Specialists to learn more about the products you should use during these rough winter months.

Curt MeyersEnergy Sales Specialist

Office: 320.826.2214

Cell: 507.430.1884

[email protected]

Travis WendtEnergy Sales Specialist

Office: 507.723.7350

Cell: 507.227.7119

[email protected]

Brooks TorkeEnergy Sales Specialist

Office: 507.485.3153

Cell: 507.616.6958

[email protected]

It is important to remove snow & ice from around the regulator on your home, shop or livestock facility and be sure to also clear around your propane tank

Regulators need to vent to regulate the pressure. If not vented properly, it is possible the supply will be interrupted.

Make sure to check your furnace air intake and exhaust on your house, shop or livestock facilities to ensure they are not covered by ice and snow.

SNOW REMOVAL! We would greatly appreciate your help in keeping a clear path to your propane tanks so we are able to make safe and timely deliveries. If we are not able to access your propane tank or fuel oil fill pipes, we will not be able to fill your tank. THANK YOU!

Winter Reminders!


TO MEET YOUR NEEDS IN 2020FINANCING OPTIONSAgQuest and Farmward understand the challenges of farming in today’s economic environment and the significance of having a financing program that can handle those challenges. Whether it’s a total operating loan, livestock or building loan, equipment loan or equipment leasing, AgQuest can provide the products and services you need to finance your operation.

Operating loan options

• Companion® Direct: A Companion Direct loan gives you a line of credit up to $250,000 that can be used to purchase products and services from Farmward. It has limited or no security required for eligible producers (if applicable, best lien position is taken) and it offers an interest rate buy-down based on your level of business with Farmward. The application process is simple, with minimal paperwork required and a quick decision time.

• Companion® Plus: Farmward also offers a Companion® Plus operating loan. This no-fee product allows qualified producers to have continuous loan commitments in place for up to two crop years. The loans also allow producers to receive an interest rate buy-down on both Farmward purchases and general farm operating expenses. The program allows producers a low-cost source of funding to take advantage of prepaid purchases and optimal grain marketing opportunities.

Consider AgQuest for your next equipment loanAgQuest equipment loans offers portable, flexible and cost competitive financing. With AgQuest, you have the flexibility to negotiate across brands and dealerships to obtain your best cash price and compare financing options whether the equipment is new or used. You are also able to take advantage of manufacturer cash discounts or refinance interest waiver contracts at the end of the waiver periods for significant savings. In many situations, significant interest rate savings are possible by switching to AgQuest.

Investing in your future with land and facilitiesFinancing for your inputs and equipment is just part of the story. AgQuest can also help you purchase land for the family farm and generations to come. Real Estate loans are long-term loans collateralized by real estate, which generally includes unimproved farm ground and traditional farm sites. Real Estate loans originated under this program are term loans with maturities and amortizations up to thirty years.

David LuepkeBusiness Relationship Mgr

C: 507.430.6831

[email protected]

David LinkBusiness Relationship Mgr

C: 507.430.4330

[email protected]

Ryan BeyerBusiness Relationship Mgr

C: 507.766.0357

[email protected]

Photo Credit: Farmward Employee, Clete Ludewig


When it’s time to expand your operation, or upgrade and improve livestock facilities, AgQuest also offers facility loans. Facility loans are secured with real estate that is improved with a livestock facility, such as swine finishing barns.

Lease options can be an advantage to your operationAgQuest offers equipment and machinery lease financing options through our partner, Northland Capital. Leasing can put equipment and machinery to work for you with real cash flow advantages without using major capital investments. For many farms, equipment purchases are one of the largest production expenses and lease financing can be a positive alternative. Lease financing includes a balanced approach to tax management options and deductions relative to a loan.

Advantages of leasing:

• Lower up-front costs—requiring no additional collateral • Flexible fixed payments that match the cost of the equipment to the revenue it generates—matching your cash

flow cycle • Preserves existing operating lines of credit—protecting your borrowing power for other operational needs• Leasing keeps equipment—and debt— off your balance sheet • Fast, convenient source of additional capital—keeping your cash for future needs, unexpected expenses or working capital

The Farmward BRM’s look forward to meeting your financing needs for the 2020 crop year and beyond. Have wonderful holiday season!

Farewell and Well Wishes to Retiring Employees!

Jan Steffensmeier Grain Accounting

Morgan

Retired November 30

22 years of service

Dan LichtsinnFeedmill Manager

Morgan

Retiring December 31

32 years of service

Dave EggimannVP of Retailer Development,

AgQuest

Retiring December 31

23 years of service

Al GroebnerGrain Truck Driver

Springfield

Retired September 30

14 years of service

Miki SchultzPresident of AgQuest

Retiring January 15

11 years of service

To our retiring employees, may your retirement be filled with many new adventures,meaningful moments, and much happiness!

Congratulations and thank you for your many years of dedicated service!


IN WESTFIELD INSURANCE TAPP PROGRAMSINNING PARTICIPATES AgQuest/MN River Insurance Agent, Shannon Sinning, recently participated in Westfield Insurance Co.’s TAPP Program. TAPP is a two-week program that only a select group of agents are able to attend and offers a proven curriculum that includes advanced insurance sales, management and technical training for emerging agents.

TAPP (The Association Perpetuation Plan) was established by Westfield Insurance when they teamed up with Westfield Agents Association in 1992. The program was developed to assist with the perpetuation of agencies and only select agencies are invited to participate in the program. As a Trilogy agency, AgQuest/MN River Insurance represents part of the top 10 percent of Westfield agencies in the nation with superior performance industry wide.

As a participant in the program, Shannon spent two weeks at Westfield’s corporate office in Westfield Center, Ohio learning advanced insurance concepts with eight other classmates from Ohio, Kentucky, Tennessee and Florida. The first three days were spent with Jeffrey Wayne Wodicka, author of the very well-known book, The Dynamics of Selling.

“Jeffrey is an amazing teacher,” Shannon said. “He has very successful agencies in New York and California and is a legend in the industry.”

Shannon spent the remaining seven days focused on commercial insurance, going through the ISO commercial forms with very advanced sales concepts and details in mind. He also spent time talking with different underwriters and departments at Westfield, which allowed him to deepen his relationship with the Westfield Insurance staff. Relationships, along with knowledge of products, are important aspects of what AgQuest/MN River Insurance does every day.

“Spending two solid weeks at Westfield, I was able to bring back an immense amount of knowledge to our agency, as well as being able to really cement my relationships with the employees at Westfield,” Shannon added. “The program also allowed me to develop long term relationships with my classmates and learn from their experiences and successes.”

AgQuest/MN River Insurance is dedicated to investing in the education and training of our agents so that we can bring knowledge and experience to the table and improve our ability to serve our customers.

AgQuest Insurance Agency is an Equal Opportunity Provider

(Back row, second from right) AgQuest/MN River Insurance Agent, Shannon Sinning, with his classmates and instructors at Westfield Insurance Co.’sTAPP Program


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OF FIRE DURING THE WINTER MONTHSREDUCING THE RISK

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Nothing feels better during our cold Minnesota winters than snuggling up in a cozy blanket and enjoying the warmth of a fire place. However, having a warm home can carry risks if you don’t take the proper precautions.

Many normal household practices during the winter raise a fire risk including, fireplaces, appliances, candles, and Christmas decorations. If a fire does happen, your homeowner’s insurance will likely cover damages and replacement costs. It’s important for you to know the risks.

What puts you at risk• Fireplace: According to the most recent statistics from the Consumer Product Safety

Commission, an average of 25,100 chimney fires are responsible for 30 deaths and $126.1 million in property damage on average each year.

• Heating: Heating is the second leading cause of U.S. home fires, deaths and injuries. December, January and February are the peak months for heating fires. Space heaters are the type of equipment most often involved in home heating equipment fires, figuring in two of every

five fires (40%). • Candles: December is the peak time of year for home candle fires; the top two days for home

candle fires are Christmas and Christmas Eve. Each year between 2013-2017, an average of 7,900 home candle fires were reported each year.

• Electrical: Electrical home fires are a leading cause of home fires in the U.S. Roughly half of all home electrical fires involved electrical distribution or lighting equipment, while nearly another half involved other known types of equipment like washer or dryer fans, and portable or stationary space heaters.

• Christmas Tree: Between 2013-2017, U.S. fire departments responded to an average 160 home fires that started with Christmas trees per year. These fires caused an average of three deaths, 15 injuries, and $10 million in direct property damage annually. Electrical distribution or lighting equipment was involved in 40 percent of Christmas tree related home fires.

A few tips to reduce your riskIf you have a wood burning fireplace, make sure that you take steps to contain the fire within the fire box. Use screens to keep sparks from flying into a room and landing on furniture. You should always extinguish these fires completely. Never let them smolder. • Make sure that your chimney is cleaned annually. If ashes and other residual debris accumulate

in a chimney, they can easily cause a fire to start. • Make sure your space heater is working properly and doesn’t overburden the outlet. And, never

leave the heater unattended.• Don’t place flammable objects near sources of heat. • Blow out candles when you aren’t in a room and keep them away from anything flammable.• Check electrical cords often. Replace cracked, damaged, and loose electrical or extension cords.

Do not try to repair them.• Pick out a fresh-looking Christmas tree and keep it watered. Keep it away from heat and turn off

the tree’s lights when you’re not around to keep an eye on them.We encourage you to reach out to AgQuest/MN River Insurance to help answer questions you have regarding fire coverage on your homeowner’s insurance. Our agents have the knowledge and experience to help you navigate through the complexities of your homeowner’s insurance, as well as your auto and farm insurance policies, to give you peace of mind. Don’t leave yourself exposed to the unexpected; contact one of our agents today!

AgQuest Insurance Agency is an Equal Opportunity Provider21FARMWARD INSIGHT WINTER • 2019

Tim LewisAgQuest/MN River

Insurance

C: 612.756.2903

[email protected]

Shannon SinningAgQuest/MN River

Insurance

O: 507.345.8602

[email protected]

Amber WeberAgQuest/MN River

Insurance

O: 507-593-0128

[email protected]

Tom Rekstein AgQuest/MN River

Insurance

O: 507.345.8602

[email protected]


THE 2019 CROP INSURANCE YEARFINISHING UPAs we near the end of the calendar year, so comes the end of the crop insurance period on December 10th, which marks the latest date of insurance coverage for corn and soybeans. If you still have a crop in the field after the December 10th deadline, here are the actions you must take:

• Contact your AgQuest Crop Insurance agent and report a loss • Continue your normal and customary harvesting practices, including keeping good

production records by unit, if possible. • Document conditions for your acreage and the actions you take so you can receive an

accurate claim payment, if one is due.• You may request an extension of time to harvest if you are unable to harvest by the

calendar date for the end of the insurance period. You must harvest your crop during the extension period if a window of opportunity arises. If you do not, the approved insurance provider will appraise the acreage at that time and finalize the claim based on the appraisal. Damage occurring after the window of opportunity to harvest is uninsurable.

Harvest prices setFinal harvest prices have been set using the daily average closing price during the month of October, for December Corn Contracts and November Soybean Contracts. The final approved Revenue Protection (RP) harvest prices were lower than the spring prices, therefore, raising your loss trigger yield. What that means, is that even though you may have made your spring guarantee, you could still have a revenue loss. You will want to check with your AgQuest Crop Insurance agent to make sure you don’t miss out on a claim.

Revenue Protection Loss ExampleKeep in mind you are guaranteed the higher of spring or fall revenue 185 Bu Trend APH x 85% = 157.3 bu x $4.00 BP = $629 guarantee revenue (spring)Lower harvest price example: Harvest Price (HP) = $3.90 Harvested Bushels = 150 bu Harvested Revenue = 150 x $3.90 = $585 Payable loss of $629 - $585 = $44 loss per acre

Deferral of Interest Charges on Crop insurance premiums extendedDue to widespread flooding, and excess moisture conditions impacting much of the U.S. RMA had extended the premium due date on policies with an 8/15 bill date only and relaxed the policy provisions on interest attaching to unpaid premium. Due to the ongoing issues and now weather forcing later harvests in many areas, RMA has made the decision to push back interest charges into 2020.

Kathy Mainer Crop Insurance Specialist

C: 319.290.4258

[email protected]

Sheri Bakker Crop Insurance Specialist

C: 320.212.9226

[email protected]

Lynn Button SVP of Sales

C: 952.240.1845

[email protected]

Photo Credit: Farmward Employee, Tina Meine

23FARMWARD INSIGHT WINTER • 2019232323332AFAFAFFARMMMWAWAWAWAWAAAW RDRDRDRDRDRRR IINSNSIGIGGHTHTH WIIWIWIWWWIWIW NTNTNTNNTNTTERERERERERER ••• 22222010101110010101999999999

Interest on unpaid premium is deferred to the earlier of the applicable termination date or until 1/31/20. However, any premium not paid by the earlier of the applicable termination date or 2/1/20, interest will be retroactive to 9/1/19.

In addition, as done for the last extension, again decided to allow for the same additional time to remit payment on their 2019 Crop Hail & Named Peril premium without incurring interest charges.

Billings will be generated as normal, however, interest will not be charged for any unpaid premium if payment is postmarked by 1/31/20. If any premium remains unpaid on 2/1/20, interest will be retroactive to 10/1/19.

While most companies are following RMAs deferral of interest charge extension on the hail and named perils, to be sure, we highly encourage you to clarify your individual situation with your agent.

Make an informed decisionEnrollment is now open for the Agriculture Risk Coverage (ARC) and Price Loss Coverage (PLC) programs for the 2019 and 2020 crop years. Sign up deadlines are March 15, 2020 for your 2019 election and June 30, 2020 for your 2020 election. As your trusted advisors, we encourage you to talk to your AgQuest BRM and/or your AgQuest Crop Insurance Specialist before signing up. The 2019/2020 marketing year average prices will continue to run their course, which will aid in the decision making for your 2019 program election. With the tools that AgQuest has available, we can help you make a more informed decision when determining which program is the best fit for you.

Importance of crop insuranceIf you are looking at cutting expenses for the 2020 crop year, your crop insurance coverage should not be one of them. Crop insurance is one of your best risk management tools – helping to protect your crop from unforeseen setbacks and you from unforeseen losses. Again, we encourage you to talk to an AgQuest agent to analyze the different coverage options available. We look forward to the 2020 crop year and preparing your crop insurance coverage.

Wishing you safe travels during the holidays and have a very Merry Christmas!

AgQuest Insurance Agency is an Equal Opportunity Provider


Farmward/AgQuest Holiday HoursChristmas Eve................................Tuesday, December 24th - Closed 12 - 5pm

Christmas Day................................Wednesday, December 25th - Closed all day

New Years Day................................Wednesday, January 1st - Closed all day

711 Front Street • PO Box 278Morgan, MN 56266

PRSRT STDU.S. POSTAGE

PAIDPERMIT NO. 16MADELIA, MN

56062

Clements32959 235th St.Wabasso, MN 56293Phone: (507) 723-7367

Comfrey101 Pine St.Comfrey, MN 56019Phone: (507) 877-2441

Danube708 Hwy 212 E, PO Box 98Danube, MN 56230Phone: (320) 826-2214

Morgan711 Front St, PO Box 278Morgan, MN 56266Phone: (507) 249-3196

Morton320 W 1st St.Morton, MN 56270Phone: (507) 697-6113 Olivia706 E. LincolnOlivia, MN 56277Phone: (320) 523-1811 Renville340 Dupont Ave. NE, PO Box 604Renville, MN 56284Phone: (320) 329-8377 Sacred Heart120 1st Ave, PO Box 70Sacred Heart, MN 56285Phone: (320) 765-2726

Springfield36609 US Hwy 14Springfield, MN 56087Phone: (507) 723-7350

Wabasso1212 State Hwy 68Wabasso, MN 56293Phone: (507) 342-5184

Wood Lake1745 550th St, P.O. Box 69Wood Lake, MN 56297Phone: (507) 485-3153

Connect with us!

1. Check out our website: www.farmward.net

2. Download the Farmward Cooperative App available on the App Store & Google Play

3. Like us on Facebook: www.facebook.com/farmwardcoop

4. Follow us on Twitter: www.twitter.com/FarmwardCoop

harvest better than expectedharvest better than expected craig hebrink • pg 4 morton ......

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