www.fce.coop • August 2015 • 1

Serving farmers, gardeners and animal lovers in southeastern Minnesota, northeastern Iowa and southwestern Wisconsin August 2015

Your Co-op Advantage

Help correct misconceptions about agriculture

Pay Onlinewith eAgVantage

If you have a Farmers Co-op account and computer access, you can view your account online and make an ACH payment (a secure fund transfer from your financial institution) through our eAgVantage program.

It only takes a few minutes to get set up. Call one of our four locations with your customer account name/number and your email address. They will set up your online account access and email you instructions on how to view your records and make payments.

eAgVantage allows FCE patrons to access their account through our web-site, www.fce.coop. Once your account is set up for online access, click on the eAgVantage link in the website’s left navigation bar, and you will be able to view and print statements and invoices. Your account informa-tion is at your finger tips.

Thank you for your patronage. Now you canPAY onlline too!

Agricultural practices are a major topic of discussion today, eliciting a wide range of questions and emo-tions – ranging from excitement and optimism to skepticism and even fear. Marketers are taking advantage of those emotions, sometimes with-out regard to science or fact.

As an ag community, we need to do a better job communicating to the public how safe our products are. FCE wants to be part of a new con-versation among everyone who cares about how our food is grown.

You may have seen the signs at dairy night out events in June. When and where it’s appropriate, we’ll use those signs, provide speakers and share articles to provide factual informa-tion about how food is produced, antibiotics and GMOs. Please contact us if you’re involved in an event that could use some ag facts.

All Milk is Antibiotic Free• Allmilkisstrictlytestedforantibioticsonthefarmandprocessingplant.

• Milkthattestspositiveisdisposedofimmediatelyanddoesnotgetintothefoodsupply.

• Itisillegalforanymilkthathasantibiotictobesold.

• Milklabeledantibioticfreeisoftenmoreexpensive.

• Withorwithoutthelabel,you’regettingantibiotic-freemilk!

2 • August 2015 • www.fce.coop

RUSHFORDPO Box 604800-450-7733 | 507-864-7733Monday-Friday: 7:00 a.m.-5:00 p.m.

Town & CounTy STore HourS800-450-7733 | 507-864-7733Monday-Friday: 8:00 a.m.-5:00 p.m.Saturday: 8:00 a.m.-12:00 p.m.

HOUSTON300 North Grant Street800-450-3147 | 507-896-3147Monday-Friday: 7:00 a.m.-5:00 p.m.Saturday: 8:00 a.m.-12:00 p.m.

CALEDONIA15609 State 76800-427-2520 | 507-725-3306Monday-Friday: 8:00 a.m.-5:00 p.m.Saturday: 8:00 a.m.-12:00 p.m.

SPRING GROVE306 2nd Avenue NW877-362-8898 | 507-498-5321Monday-Friday: 8:00 a.m.-5:00 p.m.Saturday: 8:00 a.m.-12:00 p.m.

WEBSITE: www.fce.coop

EMAIL: paulson.r@fce.coop

BOARD OF DIRECTORSSteve Oian Jr., PresidentDan Kunst, Vice PresidentPaul Olson, Secretary/TreasurerEric Nelson, DirectorRick Ruberg, DirectorDarin Bratland, DirectorScott Bulman, Director

STAFFGordy Elliott, General ManagerSteve Lundberg, ControllerRod Torgerson, Feed Division ManagerMark Honsey, Agronomy Division ManagerGreg Boldt, Grain Division ManagerSally Ryman, Editor

The Farmers Co-op Advantage is published bi-monthly by Farmers Co-op Elevator Company, your member-owned local co-op — serving farmers, rural households, gardeners and animal lovers in southeastern Minnesota and north-eastern Iowa.

Copyright 2015

FAMILY NIGHT ON THE FARM AT WIRTLAND HOLSTEINS

www.fce.coop • August 2015 • 3

GRAIN NEWS by Greg BoldtWe’re prepared to help with your grain needs now and at harvest

5 MILLION+ BUSHELS

TOTAL GRAIN CAPACITY

• Custom Dry • Grain Bank Storage

• Open Storage • On Farm Pick Up/Direct Ship

Spring Grove

Houston

Rushford

A Recent Graining Marketing Success StoryWe have been highlighting different types of contracts in the past few newsletters. In this edition we’d like to share a success story — A customer sold cash corn for $3.00/bushel. He also bought an option and was able to get $3.50/bushel in the end.

How did he do that? As you may recall from our January/February newsletter, hedgers typically buy options for price protection. This farmer purchased a call option. Prices rose high enough that he could abandon the option and take advantage of the price increase. After deducting the cost of the option, he picked up 50¢/bushel. While not every option is as successful as this, options are very safe. The cost is the premium. You can-not lose more than the premium.

We can help you market your grain profitably too, using a variety of tools:

Cash • Delayed Price • Basis • Fixed Price • Hedge to Arrive • Customized Contracts

We can also buy options to cover the upside and downside potential on a cash sale contract like in the example above.

Call me at 507-864-7733 or 800-450-7733 to learn more about your contract and storage options. Grain contract office hours are 8 a.m.-5 p.m. weekdays.

We are prepared for a big crop of corn and soybeans.

FCE has made significant facility investments in the past few years, adding storage bins and new technologies that speed up receiving. This summer we’re installing new conveyors in Rushford Downtown to speed up bean receiving and are looking at improvements at other facilities to expand capacity.

Whether you market your grain through us or simply need storage, our facili-ties are here to serve you.

We’ll need to know whether you want to sell your grain, put it in the grain bank or store it when it’s received.

4 • August 2015 • www.fce.coop

Total forage management is a renewed focus at Farmers Co-op. For years our dairy nutritionists have shared forage management insights with their cus-tomers. They focus on improvements to harvest, storage and feeding with the goal of saving more of the nutri-ents you grow. “Our dairy producers are putting up quality forages. We’re expanding our services to meet more of their forage management needs,” according to Feed Division Manager Rod Torgerson. “To get the most out of your forages, you need to start with the basics of seed selection and crop management,” adds Agronomy Divi-sion Manager Mark Honsey.

Agronomist Roy Zellmer has been assigned to bridge that gap at FCE. In his new role as forage specialist, Roy work with farmers and their dairy nutritionists to improve forages from seed to feed.

Roy says now is the time to get back to fundamental crop management and start planning for next year by giving your alfalfa a checkup. Current plant density and quality of roots will help you decide which fields to take out and rotate. Insect counts will help you determine where treat-ments are needed. Tissue analysis will dictate if soil nutrients should be added. Prior to the last cutting, you should also consider applying a fun-gicide to promote winter hardiness.

Once your forage is harvested, you can optimize forage quality by:

• Controlling mold development• Reducing the risk of heating• Shortening drying time

• Preserving silage quality• Improving digestibility• Protecting nutrient levels.

FCE carries Biomax® 5, which is the conventional inoculant, and Silosolve® MC which helps reduce clostridia in haylage. If you missed the spring booking and are looking for a product that provides excellent results at a competitive price, give Roy a call and he can go over any questions you may have. SiloSolve OS (Oxygen Seeker) is a product, not an acid, that you spray on top of your bunker before covering it with plastic. It really helps reduce mold in the top 6 to 12 inches in the bunk. A few of our producers did some trials for us last year and were pleased with the results. They sprayed half the bunker. When they pulled the plastic back, they could see right where they did and didn’t spray.

One pail of this product covers 3750 square feet and would cost around a nickel a square foot. For easy ap-plication, we lend out a plastic tote with a gas powered pump and a long hose from Houston.

Call Roy for an alfalfa checkup or help with your forages.

AGRONOMY NEWS by Mark HonseyFCE has a renewed focus on Forage Management

Roy Zellmer, Forage SpecialistCell: 608-393-4120 | zellmer.r@fce.coop

Seed • Grow • Harvest • Store • FeedCheCklist for silage and tMr ManageMent

• Make sure the silo is in good con-dition, free from cracks, holes and poorly fitting doors.

• Harvest crops at recommended moisture and maturity.

• Make sure bunker silos have a good base.

• Chop forage at the optimum length.

• Use a silage inoculant to im-prove fermentation. Apply at recommended rates with a well-calibrated applicator.

• Ensile/bag forage as quickly as possible.

• Distribute forage evenly within the silo or bag and pack well.

• Cover and securely seal.

• Remove 6”+ daily during feedout.

• Keep the bunker face even.

• Clean out feed bunks regularly.

• Manage TMR to prevent heating between feedings.

• Provide adequate pack weight (800#/ton unloaded/HS).

Dean Smith discusses forages with FCE Forage Specialist Roy Zellmer

www.fce.coop • August 2015 • 5

AGRONOMY NEWS by Mark HonseyAn alfalfa plant health checkup this summer can mean the difference between average and exceptional production. Forage Specialist Roy Zellmer demonstrates the key evaluation points.

• Plant Health: Root Score - Dig up several plants from different locations throughout the field, cut into the taproot and visually assess the plant according to the chart below. A healthy root will be firm and white or slightly yellow. Crown rot is present in the field if roots have dark brown areas extending down the center.

0-2 Keep stand in production

2-3 Consider replacing stand

3-5 Rotate stand out of production

• Tissue Analysis - In-season tissue sampling analysis identifies which nutrients need to be addressed and is vital to maximize the genetic potential of the plant.

• Stand Count - Assess the alfalfa stand and stem density to ensure it is adequate to maximize yields.

>55 stems/square foot - good for a mature stand, stem densitiy should not limit yield

40-55 stems/square foot - expect some yield reduction

<40 stems/square foot - consider replacing the stand

GIVE YOUR ALFALFA A CHECKUP TODAY

• Insect and Disease Diagnosis - Identify insects and diseases present and determine treatment. • Potato Leafhopper– 2 per sweep in 1 to 2 inch alfalfa,

July and August concern • Alfalfa weevil—30 to 40 percent of plants show any

feeding, generally first crop concern • Alfalfa (tarnished) plant bugs – shriveled leaves • Aphids – spotted, blue, pea, cowpea aphid • Additive effect of insects and environmental issues (too

wet, too dry)

0 = Healthy plant1 = Some discoloration2 = Moderate discoloration and rot3 = Significant discoloration and rot4 = Greater than 50% discoloration5 = Dead

6 • August 2015 • www.fce.coop

CROP & MARKET REPORTOur crop conditions could not get much better. Early planting, timely rain, and strong growing degree days have been ideal for the corn and bean crop. Pasture conditions have been super. The only weather prob-lem is it has been too wet to bale hay.

We may have seen our summer rally. The August 12 crop report will be the first with USDA actual projected acres and crop yield. Drought conditions are non-existent. Heat and dryer con-ditions will help the eastern corn belt yields increase. Weekly crop condi-tion reports have slowly improved.

Looking ahead, the early planted crop and potential strong growing degree days promise an early corn harvest with potentially dryer than normal corn. Lower prices and slower crop sales may cause storage to be at a premium this year with limited corn and bean storage availability. We promise to do our best to help ev-eryone. We may have to provide the extended contracting opportunities.

A GOOD FIRST YEAR AT FCEI have been your general manager for a year now and have enjoyed meet-ing many patrons, seeing your pride in your co-op elevator. I look forward to meeting many more patrons in the coming year.

ECONOMICS & TECHNOLOGY DRIVE CHANGEA year ago I discussed neighboring and how farmers worked together. Your cooperative elevator continues to be a great example of farmers working together. As the world con-tinues to change rapidly all around us, economics is driving farms to

keep growing and adding faster and larger equipment. Similarly we have seen the consolidation of regional marketing and supply cooperatives. As a result, we have Dairyland Power, Land O’Lakes, CHS, AMPI, DFA, and CoBank. Consolidation continues today with mergers, unification, or consolidation of a local or regional cooperatives making the news every month.

My dad worked at small coopera-tive creamery where we sold our own milk. Eventually, this cream-ery merged into a larger coopera-tive creamery. The larger creamery eventually was forced to merge again to compete in today’s economic environment. The trend is clear as economic and technology strategies allow and make sense. Technology impacts your co-op directly. As re-ported in this newsletter, we can now pay our bills online, forage manage-ment, better ration nutrition, and feed mill management are improving with technology.

THE FUTURE LOOKS BRIGHTAttending a couple fairs this summer has reaffirmed my belief that farm kids have a lot of opportunity going for them. They adapt quicker to tech-nology and expect more and faster changes in best practices. It’s not the labor intensive environment my father and grandfathers faced. Tech-nology is here to stay and, along with some common sense and stronger work ethic, the future is very bright. Congratulations to all fair partici-pants as these are memories that will be with you for a lifetime.

FCE ADAPTS TO CHANGES Your co-op also faces more govern-ment regulations. We just completed a Minnesota sales tax audit and, thanks to all of you who complied and signed the proper sales tax forms, we did alright.

The FDA: Food Safety Moderniza-tion Act goes into effect in Decem-ber. Since your feed goes into the food production of milk and meat, we must meet food manufacturing regulations. We are able to trace feed ingredients that were fed on your farm.

Processes on your farm and at our mill make sure there is no milk and meat containing any hint of antibiot-ics. We need to be ambassadors for our industry and tell all consumers how we produce very safe food in the U.S.

MANAGEMENT REPORT by Gordy Elliott

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FEED NEWS from Rod Torgerson

Summer seemed to fly by this year; hopefully you all had a safe and prof-itable one.

COUNTY FAIRSFCE was involved in five different livestock auctions and some dairy auctions at this year’s county fairs. It is very important to us as a co-op to stay involved with our youth and the promotion of agriculture. Congratu-lations to everyone who showed this year at the county levels and good luck to those participating in the state fairs.

NEW MILLThe feed mills continue to increase in tonnage each year. This year we will break the 70,000 ton of manufac-tured feed through the Houston and Rushford facilities. Last year we were just over 68,000 tons. Thank you for your continued business. With the increased tons we continue to work toward the new feed mill. We ran into a setback when the original price quoted for the feed mill came in much more expensive than the first proposal from our engineer. We are looking at modifications to make it more affordable and cost effective

and have consulted another engi-neering firm for additional ideas on a new mill.

NEW PROGRAM WILL IMPROVE FEED DOCUMENTATIONThis fall we will be going live with the new Feed Mill Manager software, which will improve inventory track-ing, feed pricing, and reporting. It will also lot track every pound of feed bought and sold, which is required in the new FDA: Food Safety Mod-ernization Act, which will start being enforced in December 2015. Feed Mill Manager will also automatically print tags and flag any formula that is out of compliance— before it is made. We’ll let you know when we are going live with the program and what changes you’ll see.

FORAGE MANAGEMENTWith fall harvest right around the cor-ner we have bunker plastic available in Houston. If you have not booked your inoculant, give us a call and we can let you know what we have to fit your needs. For high moisture corn or silage we have the L Buchneri product or an acid to help in con-trolling the lactic acid and helping

to control molds and yeasts better. The Chr. Hansen Oxy-gen Seeker has been working well to control the amount of waste on the top of the bunk or pile. Also check out the story on pages 4-5 about our agronomy division’s new emphasis on forage management.

SWITCH CREEP FEEDFor you producers that are creep feeding calves on pasture with com-plete pellets and have had problems with calves bloating in the fall from too high of an intake on pellets, we have had a lot of producers feeding our cracked corn and Purina Accura-tion® mixes. The Accuration R130 pellet has Rumensin and an intake modifier so calves do not overeat at one time. When you start feeding the Accuration mixes, make sure to ease the calves into it and blend it in with the pellets to keep the calves from backing off feed. If you have any questions give Paul Bartsh or Mike Root a call.

Thank you for your business and entrusting us with your feed and nutrition needs.

Paul Bartsh and Alesha Sveen at the fair. FCE is pleased to support the fairs and 4-H programs in Allamakee, Fillmore, Houston, Winneshiek and Winona counties.

8 • August 2015 • www.fce.coop

308 Elm Street • PO Box 604Rushford, MN 55971800-450-7733www.fce.coop

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