Progress ag industry

PRogREss ALBERT LEA TRiBunE

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CommuniTy PAssion

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FEBRuARy 28, 2016

Industry & Agriculture

Innovating in A.L.

By Colleen Harrison

O

ne local business has been a consistent contributor to the local workforce and to the community itself.

Innovance — the holding company for Lou-Rich, Almco and Exact Manufacturing — has several employees who are a part of chamber committees and has been voted best place to work multiple times through the Albert Lea-Freeborn County Chamber of Commerce.

The companies that are divisions of Innovance create products used in the food industry — such as freezer elements for convenience stores and restaurants — and the medical industry — such as portable X-ray machines and parts used in surgeries. Other areas the company contributes to are in construction, the airplane industry and mechanics, to name a few. Some clients include Harley-Davidson and John Deere, and products made by the company’s different divisions are distributed nationally and internationally.

See more photos on Page 7

What’s inside this section:

2

4

6

The seed company

Wells plant reopens

The person behind the name

One business has been a mainstay in the community for 90 years.

A once foreclosed property reopens as Wells Food Processing in October.

Gerry Vogt explains why she has kept her homegrown business in Albert Lea.

Page 2 | AlbertleAtribune.com | Progress 2016 | industry & agriculture | sundAy, FebruAry 28, 2016

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䘀爀漀洀 猀洀愀氀氀 戀甀猀椀渀攀猀猀攀猀 愀渀搀 昀愀洀椀氀礀 昀愀爀洀猀Ⰰ 琀漀 渀漀渀ⴀ瀀爀漀昀椀琀 漀爀最愀渀椀稀愀琀椀漀渀猀 愀渀搀 氀愀爀最攀 挀漀爀瀀漀爀愀琀椀漀渀猀Ⰰ 䠀漀洀攀 䘀攀搀攀爀愀氀 栀愀猀 戀攀攀渀 栀攀氀瀀椀渀最 戀甀猀椀渀攀猀猀攀猀 猀甀挀挀攀攀搀 猀椀渀挀攀 ㄀㤀㌀㐀⸀ 吀漀 搀椀猀挀甀猀猀 礀漀甀爀 昀椀渀愀渀挀椀愀氀 最漀愀氀猀Ⰰ 挀愀氀氀 甀猀 琀漀搀愀礀⸀

䄀氀戀攀爀琀 䰀攀愀 䰀漀挀愀琀椀漀渀㨀 ㄀㐀㌀ 圀 䌀氀愀爀欀 匀琀⸀

㔀 㜀⸀㌀㜀㤀⸀㈀㔀㔀㄀

Tom and Mac Ehrhardt are the third generation owners of Albert Lea Seed House. Kelly WAssenberg/Albert leA tribune

Seed company supplies farm seed as far away as the East Coast states

By Kelly Wassenberg

kelly.wassenberg@albertleatribune.com

Albert Lea Seed House has been a mainstay in the community for over 90 years, and according to co-owner Mac Ehrhardt, the business won’t be going anywhere soon.

“We have strong roots here,” Ehrhardt said.

By that he means the company has not only developed strong relationships with a core group of growers in the area, but also with the suppliers who grow seed for the company.

“That’s worth a lot to have a trusting handshake relationship with a large group of growers in the area,” Ehrhardt said. “That’s a really valuable asset to our business.”

Another reason the company hasn’t considered a move is its staff.

“We have a great group of employees,” he said. “That corporate knowledge that you get with a group of people that have worked here for five, 10, 25 years in some cases. It’s hard to replace that just because you pick up and move somewhere.”

Currently, the business has about 30 employees; however, that number can swell to 50 in the spring when temporary workers are brought in to help ship seed.

While the garden center offers a great façade for the establishment, Ehrhardt said 90 percent of the company’s business is from selling farm seed.

“We supply farm seed to farmers throughout the Upper Midwest — actually all the way out to the East Coast in some cases,” he said.

The seed business itself

Albert Lea Seed House packages some of its seed in-house while other seed is shipped in from other locations.

Why Albert Lea? Ehrhardt said he likes the people the company works with and the people who work for them. has three different areas.

The first is traded products such as corn and soybeans, which the business sells to area farmers within a 150mile radius. The second area covers oats, wheat, barley, alfalfa, pasture grasses and cover crops.

“That’s a much bigger circle that covers roughly a 300-mile radius,” he said.

Albert Lea Seed also has certified organic field seeds, which makes up about 30 percent of its total business.

“Since there are so few suppliers for certified organic field seed, we ship organic field seed all the way to New York and Maine, etc.,” Ehrhardt said.

The company also works on maintaining diversity and growing with agriculture.

“Right now agriculture has some divergent

streams. The basis of agriculture in the United States is highly-efficient, mechanized crop and animal production, and I don’t see that going away,” Ehrhardt said.

One of the most rapidly growing streams is the organic agriculture and nonGMO streams.

Albert Lea Seed also provides seed for farmers participating in the Conservation Reserve Program.

Farmers enrolled in the program agree to plant buffer strips of native grass or flowers in exchange for a rental payment which is paid to them by the government. The program is designed to protect highly erodible land and habitat for pollinators.

These are all agricultural niches that Albert Lea Seed is happy to support, according to Ehrhardt.

In the end, however, Albert Lea Seed’s success is owed to the people who work there.

“Having a good group of people is more important than a building and equipment,” he said.

By the numbers 1923 Year Albert Lea Seed opened

䈀爀椀渀最 礀漀甀爀 戀愀渀欀椀渀最 栀漀洀攀⸀

䴀攀洀戀攀爀 䘀䐀䤀䌀

䨀甀猀琀䌀愀氀氀䠀漀洀攀⸀挀漀洀

3 Generations of the Ehrhardt family who have owned the business

90 Percent of the business related to farm seed

Sunday, February 28, 2016 | induStry & agriculture | ProgreSS 2016 | albertleatribune.com | Page 3

Insurance agent says industry has changed By the numbers

By Sam Wilmes

sam.wilmes@albertleatribune.com

WELLS — A longtime insurance agent and office manager is assisting farmers in multiple ways with her firsthand knowledge of the area.

Donna Yokiel, 55, began working for Wells Insurance Agency in 2001.

Yokiel is involved with farm insurance, country homes and large farm operations, general farms, small farms, land, crop, automobile, commercial and health insurance.

A Wells native, Yokiel said working in her hometown has given her the opportunity to forge new relationships in a familiar place.

She said she’s had to adjust since she started selling insurance in her hometown by forming relationships with residents that she didn’t know while growing up.

“It’s a nice community to work in,” Yokiel said. “I feel very fortunate to work here.”

Yokiel said her favorite part of being an insurance agent is the wide variety of services she provides and the busyness of her position.

She said farming is still important to Wells, and the younger generation is stepping up to help manage

2001 Year Yokiel became an insurance agent at Wells Insurance Agency

2

Locations Wells Insurance Agency has — one in Wells and one in Mankato

time most days flies by at the office. She said October through January are her busiest months with health insurance.

Chuck Schulenberg, vice president of Wells Federal Bank, said farming is crucial to Wells and the surrounding area.

Insurance agent and office Manager Donna Yokiel assists farmers through a number of facets. Sam WilmeS/albert lea tribune “We’re a rural community, and farming is important farms. here,” she said. gotten bigger. Now it’s more Yokiel said she is busy in our community. ... It’s a with customers and the need,” Schulenberg said.

“It’s quite cool to see,” Yokiel lives in Easton and of a corporation.”

Yokiel said. has three grown children: Yokiel hopes customers Scott, Stacie and Katie.

She said she has noticed will leave her office with more information on insur- changes on farms since ance and the confidence to her childhood spent on a ask questions and refer a farm with pigs, cows and friend to the company. chickens.

She said as an insurance She said she has grown in her position. agent she tries to keep up “Now I have a lot of with the changes.

Kibble Equipment is proud to be the John Deere knowledge about insurance, “It’s important,” Yokiel dealer for you and your family. continue to learn and work said. “We certainly need it. with a great group of people It has changed a lot. It has

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Donna Yokiel stands with Wells Insurance Agency customer service representatives Abby Roberts and Juli Redig and Wells Federal Bank Vice Pesident Chuck Schulenberg. Sam WilmeS/albert lea tribune

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Page 4 | AlbertleAtribune.com | Progress 2016 | industry & agriculture | sundAy, FebruAry 28, 2016

Employees at Wells Food Processing work to ensure that broken or sub-par products are removed from the line. Kelly WAssenberg/Albert leA tribune

Wells Plant is uP and running again

By Kelly Wassenberg

kelly.wassenberg@albertleatribune.com

WELLS — When a foreclosure sign was hung at Singleteary Food Solutions in February 2014, many in the Wells community were left wondering what would happen to the site. In October, the facility was finally reopened as Wells Food Processing.

As the CEO of holding company North Central Equity, Elam Baer typically focuses his energy on acquiring struggling businesses, works to remedy issues and keeps the properties in a longterm hold. In the case of Wells Food Processing, reopening the facility was a bit different.

“There wasn’t a business there to buy, so this was a complete start-up,” Baer said. “There were no customers or employees. We were buying a building and equipment.”

Baer’s company felt the site was worth the extra effort.

“Our assessment was that one, there was an available workforce; two, it is in an area of the state that has other meat processing plants; and three — on a more opportunistic note — this building had been used for meat processing and the meat processing equipment was in the building.”

Reopening still had it’s challenges though. Baer said they had plumbers, electricians and carpenters working on the facility for months.

“It was a fair amount of work put in there, but the building and the equipment were still very helpful to us,” he said.

Another factor that drove North Central Equity to

The products made at Wells Food Processing utilize conveyor belt systems.

Employees handling raw products wear blue. Employees who process cooked products in a separate area of the facility where white.

consider the Wells area was the people.

According to Baer, the workforce in the area have worked in the industry before and are part of a rural community.

“We like the rural work ethic as opposed to the urban work ethic, so when possible we like to get businesses that are situated in rural areas,” Baer said.

The company now operates as a co-packer. A copacker is someone who accommodates another company’s overflow needs.

The companies give the copacker all the recipes and protocols needed to make a product, and it is then done at that facility. In this case, Wells Food Processing primarily makes chicken strips and chicken nuggets.

“We may eventually start

with, we have lots of space, which means lots of opportunity,” he said.

Van Wyngarden accepted the position with Wells Foods after working with Cargill for over 21 years.

“I got to a point in my career that I worked for a very large company,and I missed working for a smaller company,” he said.

“I missed not knowing the employees. I missed the opportunity to build something versus maintain something. And I missed the Midwest.”

In addition to wanting to grow the business, Van Wyngarden said he thinks it is important to be a good corporate citizen.

“We want to be a destination employer that people can come and say, ‘Good, I’m done. This is where I’m going to stay,’” he said.

producing some proprietary products, but it’s not part of our core business plan,” he said.

While North Central Equity owns the facility, Baer said the plant runs very autonomously under its own CEO Rod Van Wyngarden.

“We make very good products for very good companies,” Van Wyngarden said. “We’re being selective on the companies that we work with because we’re looking at long-term relationships. We’re looking at the slow steady progress.”

Currently, he manages about 40 employees, but that could change in the future.

“One nice thing with this footprint is as we grow and earn that business from the customers we’re partners

Wells city officials wish ed them the best in their endeavor.

“The city is very excited with the progress WFP has made in such a short time, and we are hoping their progress continues on the path they are currently on for many years to come,” said Wells City Administrator Robin Leslie.

Wells Mayor Ron Gaines said he does not doubt the company will benefit the community, noting he hopes the plant is able to expand and hire more workers in the future.

In 2004 the facility was used by ConAgra and employed over 200 workers. Both city officials and Wells residents were hopeful that businessman Stephen Singleteary would be able to revive the plant.

Many upgrades were made

By the numbers 40

Employees

2

Shifts run at the facility

15

Customers who have worked with Wells Food Processing since opening

to the facility, and a couple dozen employees were hired, only to be laid off a few months later. The facility was later foreclosed on in February 2014 before it was purchased by North Central Equity in January 2015.

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Sunday, February 28, 2016 | industry & agriculture | ProgreSS 2016 | albertleatribune.com | Page 5

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Minnesota Pork Producers President Lori Stevermer recently completed her second term.

Sam WilmeS/albert lea tribune

President of Minnesota Pork Producers Association focused on priorities with lawmakers By sam Wilmes

sam.wilmes@albertleatribune.com

EASTON — A rural Easton woman has just completed her second term as president of the Minnesota Pork Producers Association.

In her second year as president, Lori Stevermer was involved with the organization’s advocacy efforts, including visiting with lawmakers about the economic impacts of the pig industry.

She discussed road improvements and visited with Lt. Gov. Tina Smith, discussing transportation and the need for good roads and bridges.

Stevermer talked about a Department of Natural Resources rule ordering any farm using more than 1 million gallons of water to obtain a permit. She and other members discussed with the DNR the impact the regulation would have on farmers to avoid adverse effects.

She was involved with consumer advocacy efforts and discussed the job of farmers to consumers.

Stevermer was first elected president in December

Why did you serve on the Minnesota Pork Producers board?

“I like having that information. I like being part of that decision-making process.”

— Lori Stevermer 2013, though she was elected to the board in 2009.

She said her interest in serving on the board was sparked by her enjoyment of getting involved with different hog industry issues and activities.

“I like having that information,” Stevermer said.

“I like being part of that decision-making process.”

She works for Hubbard Feeds, an animal feed company.

Stevermer said the job is a good companion to her position by allowing her to incorporate things she’s learned from her job to the board.

She was also recently named to the Domestic Marketing Committee for the National Pork Board

that works on increasing consumer demand.

She said being on the board gives her a chance to meet more people.

Stevermer said farming can be a positive profession for young people and said it offers science and technology, the opportunity of being your own boss and having a flexible schedule.

She said farming needs an influx of young people.

“It’s still a steady business, and we need farmers,” Stevermer said.

Stevermer is married to her husband, Dale. Their oldest son, Brett, is a junior at the University of Minnesota, studying mechanical engineering. Their other son, Adam, is a freshman at the University of Minnesota, and their daughter, Beth, is a sophomore at United South Central.

In her spare time, Stevermer enjoys attending her children’s activities, including cross country and track. An avid runner and bicyclist, Stevermer has participated in Mankato Marathon and Grandma’s Marathon.

By the numbers 2013 Year Stevermer was first elected president of the Minnesota Pork Producers Association

Nobody covers

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Year Stevermer was first elected to the Minnesota Pork Producers board

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Albert Lea Tribune, 808 W. Front St, Albert Lea, MN 56007 or e-mail to: letters@albertleatribune.com

To subscribe, call 507-379-3422

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Albert Lea, MN | 1353 S.E. Broadway 507-373-6469 | bauerbuilt.com Freeborn-Mower Reflects on Landmark Year In the 80-year history of Freeborn-Mower Cooperative Services, the year 2015 marks a major turning point for the local electric distribution cooperative. On July 31st, Freeborn-Mower welcomed nearly 16,000 new member-owners, nearly quadrupling the number of accounts it serves. The unprecedented growth of the Albert Lea-based electric cooperative resulted from the acquisition of Minnesota service territory and assets from Alliant Energy.

“This was the single most effective way for our electric cooperative to grow its membership and secure our ability to be a relevant player in the electric utility business for decades to come,” explained Jim Krueger, Freeborn-Mower President & CEO. “Completing this acquisition has strengthened our cooperative and created efficiencies and economies of scale.

At the same time, Alliant Energy was willing to divest itself of its holdings in the state.

It was an optimal point where the best interest of each of the parties aligned.”

The process actually began in 2012, with steps that led to twelve Minnesota electric cooperatives joining to form Southern Minnesota Energy Cooperative (SMEC) as a single contact point for the purpose of offering a proposal to acquire the service territory and assets of Alliant Energy’s Minnesota holdings. “The cooperative service territories intertwined with that of Alliant Energy, making this a logical fit. In September 2013, SMEC reached an acquisition agreement with Alliant Energy,” explained Krueger. “As part of the SMEC acquisition, Freeborn-Mower integrated the largest number of Alliant Energy accounts into our cooperative membership.”

“Once the acquisition process was complete and the Minnesota Public Utilities Commission approvals were given in 2015, the real work began,” noted Roger Weness, Chair of the Freeborn-Mower Board of Directors. “Our business models were totally different.

Freeborn-Mower is a cooperative that is owned and controlled by those using its services, that is, the consumers. We call them member-owners. On the other hand, Alliant Energy is an investorowned utility governed by stockholders under a business model designed to generate a profit for those stockholders. In contrast, our electric cooperative’s business model is not-for-profit. We charge what it costs and give the rest back to the member-owners through our system of Capital Credits.”

“Our exceptional growth means that we are making an extra effort to introduce our new members to the guiding principles of the cooperative business model, as well as the variety of programs and services we offer. We’ve also nearly doubled the size of our staff. We are very happy to have integrated eighteen employees from Alliant Energy, bringing our present workforce to sixty-three.” added Krueger. “The transition has been successful due to the commitment of all employees and our board of directors.”

Now six months post-acquisition, Freeborn-Mower Cooperative Services is well posed for the challenges and opportunities that will face the electric utility industry. Weness summed up the efforts of the past few years by saying, “Essentially, the completed acquisition means that it’s a new day for the cooperative way. Freeborn-Mower Cooperative Services has entered a new era.”

2501 E Main St Albert Lea, MN (507) 373-6421

Page 6 | AlbertleAtribune.com | Progress 2016 | industry & agriculture | sundAy, FebruAry 28, 2016

Mrs. Gerry’s Kitchen is at 2110 Y.H. Hanson Ave. in Albert Lea. sArAh stultz/Albert leA tribune

Founder: ‘We went out on a step of faith’ By sarah stultz

sarah.stultz@albertleatribune.com

The founder of one of Albert Lea’s most successful start-up businesses said she is proud to live in Albert Lea. Mrs. Gerry’s Kitchen founder Gerry Vogt said she moved to Albert Lea when she was 12 years old and her father got a job here.

She attended St. Marys Catholic School — now the site of Thorne Crest Senior Living Community — and graduated from Albert Lea High School.

After graduation she worked at the Red Owl grocery store in Albert Lea, First National Bank and Piggly Wiggly.

“Between my banking experience and grocery experience, I was preparing myself for a career I didn’t know I was going to get into,” she said.

While working at the bank she met her husband, Jerry Vogt, who had come down from White Bear Lake.

They got married in 1967.

She said her husband bought a Schweigert meat distribution business in Albert Lea, and one day — six years later, after

Why does Mrs. Gerry’s stay in Albert Lea?

Gerry Vogt said it is a combination of the support of the community, a good workforce and the support from city officials that have contributed to her and her family keeping the business here. they had three children — her husband came home from work and asked her to start making salads for him to sell with his business.

She said she started out with potato salad, a macaroni salad and a cole slaw.

Customers started asking for different products, and she started developing more products herself, she said.

“I enjoyed cooking and stepping out and trying to find new recipes,” Vogt said.

Things took off from there.

Mrs. Gerry’s Kitchen started in a former cabinet shop on Seventh Street and after about five years moved to the Northaire Industrial Park, where it

Jerry and Gerry Vogt remains today.

There have been several expansions to the building on Y.H. Hanson Avenue.

The most recent expansion, she said, made the building larger than the company’s immediate demand.

“We went out on a step of faith that the business would keep on growing,” she said.

While the company continues to make the potato salads and macaroni salads that it started out with, the largest part of the business is its mashed potatoes.

“Those have just exploded on us,” she said.

“We hit a jackpot as far as the demand.”

The company sends its products mostly to other states in the region, but there are a few across the country it sends to as well, such as Wyoming, Idaho and Washington state. She looks forward to the day the company can send to all the states.

“Our business, I really give our Lord the credit for the growth — for the success of it,” Vogt said. “It’s kind of like, ‘Where do you want to go from here, Lord?’

He has taken us to places we never thought we’d ever be.”

Aside from her faith, she said she thinks the business has done well because it is focused on quality.

“I’d rather explain my price than apologize for my quality,” she said. “If I can’t put it on my table for my family and guests, I don’t expect you to.”

She said the business has stayed in Albert Lea over the years because of the support of the community and the high caliber of its employees. It strives to be a company that cares.

Vogt said there are many reasons she loves Albert Lea. “Albert Lea has always been such a friendly town,” she said. “I think what I like the best about Albert Lea is the generosity of the people. If any cause comes up, people step forward and meet the demand. I was brought up to help your neighbor … and I could never imagine living anyplace else.”

She also likes the connections and friendships she has made over the years.

“I’ve always loved Albert Lea,” Vogt said. “It has always been home to me.”

Outside of the business,

Vogt said she has been involved in many things over the years, including as chairwoman of the Albert Lea-Freeborn County Chamber of Commerce board, on the U.S. Bank board of directors and on the board of trustees for the hospital. She has been involved with several golf events and the capital campaign for the Albert Lea Family Y. She has attended Grace Lutheran Church for more than 20 years and said her faith is an important part of her life.

By the numbers 3 Children of Jerry and Gerry Vogt

12 Age of Gerry Vogt when she moved to Albert Lea

1978 Year Mrs. Gerry’s Kitchen moved to the Northaire Industrial Park

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Sunday, February 28, 2016 | industry & agriculture | ProgreSS 2016 | albertleatribune.com | Page 7

Innovating in A.L.

Lou-Rich, a division of Innovance, now has a Bystronic fiber laser cutter that produces higher-quality, faster, cleaner The company does a great deal of welding, which is done cuts and can also etch finer details. colleen HarriSon/albert lea tribune both manually and by using robotics.

Innovance is the holding company for Lou-Rich, Almco and Exact Manufacturing.

Robotics are used throughout the company in multiple There are ultra-fine extrusions, or more detailed items, produced for the medical field at Lou-Rich. The item pictured facets. Pictured is an s-axis machining cell with a robot load. is used in heart surgeries.

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Page 8 | AlbertleAtribune.com | Progress 2016 | industry & agriculture | sundAy, FebruAry 28, 2016

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NO INTEREST IF PAID IN FULL WITHIN 12 MONTHS Interest will be charged to your account from the purchase date if the purchase balance is not paid in full within 12 months or if your account is otherwise in default.⁴

JOiN OUR TEAm AND DiScOVER THE VENTURA EDGE.

www.agpowerjd.com Belle Plaine, MN Hollandale, MN 1051 Old Hwy 169 Blvd West Hwy 251 (952) 873-2224 (507) 889-4221

Owatonna, MN 3555 SW 18th St (507) 451-4054

Northwood, IA 806 Central Ave (641) 324-1154

Osage, IA 2197 Hwy 218 E (641) 732-3719

1 Manufacturer’s estimate of power (ISO) per 97/68/EC. 2Offer valid 2/3/15 through 4/30/15. Subject to approved installment credit with John Deere Financial. Some restrictions apply; other special rates and terms may be available, so see your dealer for details and other financing options. Fixed Rate of 0.0% for 60 months on 5E (3-cylinder) Tractors.

Valid only at participating US dealers.³Offer valid 11/1/14 through 3/2/15. Get $500 Off all X300 Select Series Tractors. Subject to approved installment credit with John Deere Financial. Some restrictions apply; other special rates and terms may be available, so see your dealer for details and other financing options. ⁴Offer ends 3/2/15.

Subject to approved installment credit with John Deere Financial. No down payment required. Interest will be charged to your account from the purchase date at 17.9% APR if the purchase balance is not paid in full within 12 months or if your account is otherwise in default. Other special rates and terms may be available. Available at participating dealers. Prices and models may vary by dealer. Offer available on new equipment only.

APE4X100219ALT-4C

www.venturafoods.com

919 E. 14th St. | Albert Lea, MN | 507.373.2431

Your Local Wholesale Distributor of Structural Steel 1126 S. Broadway Ave. Albert Lea, MN 56007

For All Your Metal Needs Call:

1-507-373-5315

Aluminum And stAinless steel mAy be ordered for next dAy AvAilAbility

Services We Offer:

• Welding (Mig, Tig & Arc) • Plasma Cutting • Sawing • Cutting • Shearing • On-Time Delivery • Accurate Estimates • Delivery Available • Short Run Production • Bending

We Have On Hand: • Hot Roll • Cold Roll • Flats • Rounds • Channels • Sheets • Plates • Rebar • Pipe

3 Locations for your convenience

• Expanded Metals • Tubing

109 Park Avenue Hollandale, MN 507-889-4311

220 East William Albert Lea, MN 507-373-5500

2401 Bridge Ave Albert Lea, MN 507-373-8600

Checking • Savings • Loans • CD's • IRAs • HSAs Credit Cards • ATMs Debit Cards • Internet Banking Telephone Banking • Safe Deposit Boxes Member

FDIC

www.producestatebank.com