July/August 2016 by Connect Business Magazine

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Contents

THE MAGAZINE FOR GROWING BUSINESSES IN SOUTHERN MINNESOTA

STAFF & CONTRIBUTORS Publisher: Concept & Design Incorporated

COVER STORY

Editor: Lisa Cownie

Growth Advisor

Art Director/Staff Photographer: Kris Kathmann

Steve Kibble continues the legacy set forth by his father more than 40 years ago. In the midst of a constantly changing industry, Kibble says one thing stays the same: take care of the people around you, whether they are employees or customers. You reap what you sow.

Advertising Manager: Beth Benzkofer Kozitza Contributing Photographers: Art Sidner Contributing Writers: Sara Gilbert Frederick, Carlienne Frisch, Tim Penny, Colin Wittmer

PROFILES

Production: Becky Wagner

Crop Spies

Circulation: Becky Wagner

A farmer from Winnebago and an entrepreneur from the Dominican Republic hope to successfully co-pilot the local launching of a tool that gives farmers a whole new perspective on growing season.

Simply Sustainable

CORRESPONDENCE Send press releases and other correspondence: c/o Editor, Connect Business Magazine P.O. Box 176, Nicollet, MN 56074

COLLABORATION CONNECTION – SPECIAL REPORTS

E-mail: editor@connectbiz.com (please place press releases in email body)

Web: www.connectbiz.com

An insider look at the Southern Minnesota Center of Agriculture and how it is collaborating with industry leaders to find solutions to the workforce crunch in the ag industry.

Phone: 507.232.3462 Fax: 507.232.3373

ADVERTISING

Launched in late June, Connect explains the efforts in southern Minnesota and northern Iowa to unite the region and rally around agriculture.

Call: (507) 232-3462

COLUMNS

Locally owned Connect Business Magazine has ‘connected’ southern Minnesota businesses since 1994 through features, interviews, news and advertising.

Editor’s Letter Cownie Connection

ABOUT CONNECT

5 34

Connect Business Magazine is a publication of Concept & Design Incorporated, a graphic design firm offering print design, web design, illustration and photography. conceptanddesign.com

IN EVERY ISSUE

Connect with Community Business Briefs Bulletin Board Opinion Hot Startz! Ask A Professional 4

Cover Photo: Kris Kathmann

9,400 for July/August 2016 Published bimonthly

Bruce and Beth Meyer continue to thrive on their Elysian farm, not with technology or scientific advances, but by using sustainable agricultural practices.

Welcome to the GreenSeam!

Mailing: Midwest Mailing, Mankato

CIRCULATION

Keeping Up With Demand

Printing: Corporate Graphics, N. Mankato

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JULY/AUGUST 2016

EDITOR’S LETTER

Celebrating the Ag Industry Agriculture plays a vital role in our lives every day. And I’m not just talking about the food we eat. The economy in this region is very ag-centric. Agriculture is the base for which other businesses are able to start, grow and thrive here. In this issue of Connect Business Magazine, we bring you the full picture of its impact on our region. From our “Ask A Professional” column, to our opinion page, to our MSU Partnership story: we’ve got the industry covered. Our cover story is Steve Kibble, of Kibble Equipment Inc. Steve’s story of a family business weathering the ups and downs of the ag industry for 40 years is full of insight. He candidly shares his concerns that are echoed by many working in the industry: how to overcome a dwindling workforce in the agriculture sector. Understanding many share that concern, we bring you a special report highlighting efforts being made to address the issue. A collaborative effort to cultivate future farmers and replenish the industry pipeline that is quickly going dry. And speaking of collaboration, the GreenSeam is all about it! It is a brand new initiative of which all of us who live, work and play in southern Minnesota and northern Iowa are now a part! Please connect with its organizers to have your voice heard. Our profile pieces show the diversity of the industry and run the gamut from high-tech, to old fashioned sustainable farming. Winnebago-based Aker is working on technology that could prove to be an invaluable tool for farmers trying to keep their eye on their crops during growing season. Meanwhile, the Meyer Beefalo and Bison Hybrid farm just outside of Elysian embraces a savvy new trend, but is every bit a throwback to the roots of farming. Happy reading, and hopefully, learning!

Lisa Cownie Editor

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To submit a press release for publication:

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Web Site

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Treasures in Town celebrated its 10th anniversary in May. Treasures recycles donated items of gently used clothing and household goods. Sales of those donations have allowed Treasures to gift more than $100,000 to 19 organizations serving the Le Sueur-Henderson area. It is operated by an all-volunteer staff and is located at 206 S. Main Street. ReMax recently moved to a new location in Le Sueur. The new address is 213 North Main Street. MN River Insurance/Ag Quest Ins. also has a new location, 113 North Main Street. The chamber has one new business to report, Chabelita’s, located at 109 Bridge Street.

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Mankato The Telly Awards has named True Facade Pictures as a Bronze winner in the 37th Annual Telly Awards for their piece titled “WHERE ARE YOU GETTING YOUR CAR?” True Facade competed with over 13,000 entries from all 50 states and numerous countries. True Facade Pictures won two Bronze awards for regional commercial in the Automotive Industry category. The Telly Awards honor outstanding local,

regional, and cable TV commercials and programs, video and film productions, and online commercials, video and films. True Facade Pictures LLC is an independent film company specializing in short and feature length narrative, documentary and reality films. True Facade Pictures also produces promotional and web videos in the Mankato area, taking a cinematic style to the world of marketing in small business and city organizations. Bolton and Menk, Inc. is pleased to announce the addition of MHF Engineering of Jefferson, Iowa. As a consulting firm serving clients in west central Iowa, the addition of MHF will allow the firm to grow and provide greater services to clients throughout Iowa. The Educare Foundation is pleased to announce $43,625 in grant awards to support innovative learning across Mankato Area Public Schools. Grant awards for the 2016-

MANKATO

Kato Insurance Agency Kato Insurance Agency has relocated to the second floor of Profinium Place, 100 Warren St. Suite 204 in Mankato.

Incentives for Job Creation SHOVEL VEL READY DY LOTS S

New Ulm Economic Development Corporation

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2017 school year include; $13,556 to West High School for a Computer Numerical Control Plasma Cutter for the Fab Lab, $28,008 for East and West high schools for two Laser Engravers/Cutters, and $2,061 for Global Issues Readers for 8th grade global studies at Prairie Winds and Dakota Meadows middle schools. Mankato-based Abdo, Eick & Meyers has been named the country’s sixthfastest-growing accounting firm in the 2016 issue of Accounting Today’s Top 100 Firms and Regional Leaders. The 140-plus employee firm also secured a spot on the magazine’s list of Regional Leaders (Top Firms: Midwest). “We are so honored to be recognized as one of the nation’s fastest-growing firms,” said Steven McDonald, Abdo, Eick & Meyers managing partner. “Our staff has worked hard to expand the resources and services we offer for clients, and our growth is a ‘side effect,’ if you will, of this initiative.” This is the first time Abdo, Eick & Meyers, which celebrated its 50-year anniversary in 2013, has ranked in the top ten of Accounting Today’s national list. Neutral Path Communications, a provider of high-capacity communications transport services, recently completed a high count, low loss fiber path that runs from Minneapolis, to Neutral Path’s data center in Mankato. This new diverse fiber route adds to Neutral Path’s over 110,000 fiber miles, which run between key aggregation points in Denver, Omaha and Minneapolis. “The addition of our new and diverse high count fiber route to Minneapolis enables us to meet and exceed our customers’

MANKATO

Community Bank Jodi Schmitz joins Community Bank Mankato as Vice President of Commercial Lending at the St. Andrews branch. Schmitz has 10-plus years of experience in the banking industry working with clients in the Mankato area.

increasing bandwidth needs by adding multiple new data centers, tower locations, and other endpoint connections to our network,” remarked Tony Frentz, Neutral Path’s Chief Strategy Officer. Neutral Path Communications, based in Mankato, is a network neutral provider of fiber transport solutions including: dark fiber, passive and optical waves, Ethernet, cross connects, carrier hotel and related services.

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Marco, a leading technology services provider in the United States, announced that it has purchased Paragon Solutions Group, Inc., a business IT services company located in Plymouth, Minn. Paragon has been providing their clients with managed IT, cloud-based services and business IT services for over 10 years. Its employees have joined the Marco team. “This acquisition augments our wellestablished business IT services and allows us to further expand our customer base,” said Marco CEO Jeff Gau. “It continues our commitment to provide the types of

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solutions organizations are evaluating for their businesses today. We look forward to continuing Paragon’s commitment to satisfying their clients and providing them with expanded IT services.” Since 2010, Marco has grown from 350 employees to 1,050 employees and now has 49 locations. Marco’s Twin Cities-based offices are in St. Louis Park and Inver Grove Heights. Marco serves 28,000 customers throughout the Midwest and nationally.

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Sander Ludeman returns from Edward Jones’ Financial Advisor Leaders Conference. This conference recognizes financial advisors who are among the leaders in the financial-services firm. Ludeman was among only 821 financial advisors who qualified out of the firm’s 14,000 financial advisors in the U.S. and Canada. The 2016 conference was held in May at the firm’s headquarters in St. Louis, Mo. Schwickert’s Tecta America is proud to announce Kevin Palmer as President of Schwickert’s in Mankato. Kevin was previously Vice President of Operations and has over 22 years of industry experience, joining Tecta America in 2001. Kevin replaces Kim Schwickert, who is now Chairman and COO of Schwickert’s, overseeing Operations. Besides working with Kevin on special projects, Kim has joined Tecta’s team with a focus on training and leadership. He will also serve as a mentor for the management team at Schwickert’s; teaching, coaching and training on management principles that he has used as tools for his own success over the years. “I have the utmost confidence that Kevin is ready for the challenge and will do a

MANKATO

Weichert Realtors Community Group Weichert Realtors Community Group has added two new full-service agents, Carrie Ehlers and Jon Cramer.

great job,” says Kim Schwickert, Chairman and COO. Schwickert’s Tecta America is a leading Midwest roofing and mechanical systems contractor with locations in Mankato, Rochester, Twin Cities Metro and Kansas City Metro.

NEW ULM

NU-Telecom NU-Telecom was recently ranked No. 71 in the top 75 list of the largest Minnesota-based public companies. This ranking is up from No. 72 last year. The top three companies on the list are United Health Group, Inc., Target Corp., and Best Buy Co., Inc.

New Ulm Thomas Thomsen is the newest Network Administrator at Thriveon, a Managed IT Services company headquartered in New Ulm. During his 20-year career Thomsen has gained expertise in many different types of information and technology management, including database administration, data services management, IT and engineering project management, network administration, and managing the support and services department of a software company. In his role as Network Administrator, Thomsen is actively involved in the implementation of proactive IT services, and works with businesses, along with their Thriveon VCIO, to create strategies that allow the client to leverage IT for business growth.

North Mankato/ Faribault Two southern Minnesota natives have been named the 2016 Outstanding Alumni for South Central College. The recipient of

the Faribault Campus Outstanding Alumni Award is Brad Breyer, Market President for Home Federal Savings Bank based in Albert Lea. The North Mankato Campus Outstanding Alumni honoree is Julie Nelson, the Associate Regional Director of the Small Business Development Center at Minnesota State University, Mankato.

St. James The City of St. James has been awarded participation in the ArtPlace CDI Grant through the SWMHP. The City of St. James has been awarded a Reforestation Grant through the DNR. The City of St. James is participating in the Community Growth Initiative through SMIF. Good Samaritan Society has completed its new Post-Acute Rehab Services Center. Davis, Thoen, Kramer and Associates of

Ameriprise Financial changed its name to Wealth Management Solutions.

St. Peter Wells Federal Bank recently welcomed a new St. Peter Market President, Cory Abels. Cory specializes in commercial and ag lending. He is the President of the St. Peter Rotary Club, active in Habitat for Humanity, the St. Peter Economic Development Authority, Saint Peter Soccer Club and the St. Peter Girls Fastpitch Softball Association.

Waseca From the chamber: Hager Welds, Pantheon Computers, Casey’s General Stores, Cassie’s Classic Cuts, Shoney’s Auto Body and Edina Realty were presented Progress awards by the Chamber Ambassadors. By

WASECA

Investment Centers of America Brad Connors of Investment Centers of America is named in the top fifteen representatives.

the Way-Grocery and Gas was presented the Roots award to recognize and honor the business for providing service in the Waseca area for more than 30 years. John Priebe of the Principal Financial Group qualifies for Principal Financial Group President’s Circle. Colony Court is celebrating its 25th anniversary, offering assisted living services. Century 21 celebrates 55 years in the Waseca area. Dave’s Body Shop celebrates its 25th anniversary.

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Steve Kibble has cultivated success in the region with an eight-location John Deere dealer network. By Lisa Cownie Photo by Kris Kathmann

As Steve Kibble looks back over the last 27 years, he’s still not sure just exactly what happened. When he graduated with a business marketing and management degree from MSU Mankato he had no intention of getting involved in the family business, Mankato Implement. His dad had owned the local John Deere dealership since 1973, so Steve grew up watching his father navigate the highs and lows of the business. Steve was a first-hand witness to the struggles his father went through as the farming industry ebbed and flowed. And Steve just didn’t think that would suit him. He understood how it fit his father. His dad was in the United States Marine Corps and served during Vietnam. John Deere and Case International were two corporations hiring Vietnam veterans when they returned from duty. So Ron Kibble took a job with John Deere. He was familiar with the farming industry, he had grown up on a farm in South Dakota. After working for John Deere for several years, he became a partner in a dealership in Mankato. By the time Steve graduated college in 1992, Mankato Implement had 40 employees. And his father wanted to add Steve to that count. He asked him to give it a chance, to just see if he liked it. So Steve did, and 27 years later he’s still there. Starting in finance and sales, Steve now fills the role his father used to play, although now it’s on a larger scale. Steve helps to run an eight-dealership group known as Kibble Equipment, Inc. His dad sold out to Steve in 2009. He had either worked for or owned a John Deere store for 40 years. He keeps in touch with the industry though. In retirement, he helps

Steve farm a few hundred acres south of Mankato. Happy to watch as his son continues his legacy and continues to cultivate a successful John Deere franchise. The operation now has stores in Bird Island, Blue Earth, Mankato, Minnesota Lake, Montevideo, Redwood Falls, Sleepy Eye and Wabasso. And Kibble Equipment has quite the reputation both nationally and worldwide, earning many John Deere award honors. Steve says an eight-dealership franchise is probably average for John Deere as far as number of locations, but Kibble does a higher volume sales because they concentrate on tractors and combines. So, the average dollar transaction is probably higher than other parts of the country. The Kibble Equipment footprint goes from Montevideo to Blue Earth, with an area of responsibility of about 17 counties. It’s a responsibility Steve takes seriously. He is keenly aware that the ups and downs of the agriculture industry don’t just affect his business, but the entire southern Minnesota and northern Iowa region. Steve says, “This region is just so agriculturally-focused. All sorts of businesses here rely on the strength of the ag economy. Everything from car dealers like Mankato Ford and Mankato Motors, to other retailers, manufacturers and professional services. All sectors can definitely tell when the farm economy is not so strong.” And Steve has been around long enough to have weathered all sorts of industry conditions. He reflects now on just how he got to where he is and where he sees his business and the industry headed. continued > JULY/AUGUST 2016

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“Our employees at Kibble Equipment are our most valued assets and cannot be thanked enough for the dedication and loyalty they provide us. One of the most important lessons I took from my father was to take care of your employees and treat them like family.” What was it like growing up in a “John Deere” family? Growing up with a family owning a business was like most other businesses where both parents were involved. They worked 70-80 hours per week at the office or at the kitchen table doing paperwork, payroll, or paying bills. I learned quickly that you have to work hard in order to get anywhere and as a business owner you learn to do everything: cleaning toilets, answering phones, washing equipment and other duties that were not the most popular jobs to do. I learned that you have to be fair with the customers and treat them like they are your livelihood as they are who pay the

bills, yet you need to make sure that you get paid for the goods and services you offer in order to keep employees happy and the doors open. Our employees at Kibble Equipment are our most valued assets and cannot be thanked enough for the dedication and loyalty they provide us. One of the most important lessons I took from my father was to take care of your employees and treat them like family. We have dozens of employees with 25 to 30plus years experience in our organization which is very rare in today’s business world. When you graduated from MSU Mankato you were hesitant to

join in the family business. Yes, it wasn’t really what I was thinking I wanted to do. But it’s been a good business. I’ll tell you though, it has changed dramatically since I started! Back then we had a one-store operation with 40 employees. Then I would say in the late 1980s and early 1990s John Deere started pushing consolidation and we saw the writing on the wall. We saw that we needed to continue to grow our business and be larger in order to survive. I think at one time there were 30-plus John Deere dealerships in a 60-mile radius of Mankato. We could clearly see and understand John Deere’s consolidation

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Steve Kibble | Kibble Equipment, Inc.

vision so we got involved in the mergers and acquisition program that John Deere was promoting at that time. And over several years ended up acquiring stores in Minnesota Lake, New Ulm, Nicollet, Albert Lea and Kiester. And a few years ago, you doubled your six-location operation. In 2012 we merged with my cousin, Butch Kibble, out of Montevideo. He also had a six-store operation and the timing seemed right for us to join together and make the family business even stronger. So we merged the two operations together. We changed the organization to Kibble

Equipment Inc. with 12 locations. But, we actually ended up consolidating even more and cut our 12 down to 8 which is where we are currently. We do have a third partner/ investor from Fargo, North Dakota. Why go from 12 to 8? We just had too many dealerships too close together. We needed to spread it out a bit and get out of some of the older buildings. We feel after that merger, we are in a position now where we are just fine tuning what we have. Of course, we are always open to acquisitions, but more acquisitions are not on our radar right now.

Fine Tuning? For instance, since then we have moved into a new facility in Blue Earth. That happened last June. And just this last March we moved to a new facility we built in Sleepy Eye. Would you say consolidation is the trend for many sectors of agriculture? Yes. Each year it seems there are fewer and fewer farmers. So farmers are consolidating whether it’s cash crop operations, hog operations, or dairy, really in any sector of farming you see consolidation is happening. It’s an ongoing thing, whether it’s machinery or co-ops or seed companies.

“In 2012 we merged with my cousin, Butch Kibble, out of Montevideo. He also had a six-store operation and the timing seemed right for us to join together and make the family business even stronger. So we merged the two operations together.”

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FAMILY OWNED SINCE 1927

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If you look at the news there are always mergers happening. For example, Dupont and Monsanto are obviously two large players in the seed business and they are continually purchasing smaller seed businesses. So agriculture has really, really changed in the last 20 years. We are not dealing with many local mom and pop John Deere or Case International dealers. Even local cooperatives that the local farmers pay into are consolidating. These cooperatives are now huge, complex businesses with hundreds of employees and they have a pretty wide footprint in the areas that they cover. So it’s just the direction farming is going. In most sectors of farming you just see the economies of scale showing you need to continue to grow in order to survive. How many employees do you currently have company wide? We have more than 200 employees, but that number goes up when we hire seasonal help. Is it hard to find employees? Definitely. It’s kind of what I consider an “old trade.” It used to be easy to go to South Central College and walk in to their diesel mechanics class and find it full with 60 or 70 kids in it. But each year that number dwindles a bit. So we’ve had to reach out to other technical schools in the area, but even their programs aren’t full like they used to be.

“We’ll sponsor these kids and guarantee them a job and tuition reimbursement. But we have to recruit them in high school so we can show them, convince them, and get them to understand, it’s a good lifestyle.” We’ve implemented a new recruitment plan where basically we’ll recruit kids in high school. We try to convince them to go to a tech school like South Central or to a John Deere-sponsored school. John Deere has two of those, one in Calmar, Iowa and one in Wahpeton, North Dakota. We’ll sponsor these kids and guarantee them a job and tuition reimbursement. But we have to recruit them in high school so we can show them, convince them, and get them to understand, it’s a good lifestyle. Many aren’t aware that this is a great career path. Why do you think that is? Especially since we live in an area with ag all around us? Unfortunately, there is still that stereotype that tractor mechanics are in grease all day long. But these days the technicians are welleducated and, in fact, a majority of their time is spent on a lap top diagnosing equipment. Sure, they may still get their hands dirty a 14

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Steve Kibble | Kibble Equipment, Inc.

little tearing things apart and getting in some grease and oil. But the majority of the time is spent with the technology. How has technology changed for equipment specifically? Much of the equipment now probably has 15 onboard computers to diagnose every single thing it does and monitor every system that could go wrong. Truly, equipment today offers precision-farming capabilities. For instance, there are a lot of guidance-driven implements in the field. Tractors can even basically steer themselves! Computers are always getting the system diagnostics back to the owner. If a farmer is out in the field, we are back here getting diagnostic information remotely. So we can remotely tie into a tractor or combine to see where it is located and it will give us an idea if something is going to go wrong with it! It will send us an email and

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The Family Behind The Family Business Wife, Pam: works as a Reading and Math Intervention Teacher at Kennedy Elementary School in Mankato. Son, Zach: serves as a Captain in the United States Marine Corps, currently stationed in Hawaii. Daughter, Abby: a Junior at South Dakota State University studying Agribusiness. Steve says he is not sure if she wants to be in equipment sales but knows she wants to do something with agriculture. Steve says for her, the timing is just right. “There is a huge opportunity for women to find careers in agriculture right now. The potential is truly unlimited. I’ve seen a lot more women get involved in agribusiness, whether it’s the seed business or co-ops. But there is tremendous potential right now. Son, Jake: A 9th grader at Mankato East High School.

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“Truly, equipment today offers precision-farming capabilities. For instance, there are a lot of guidance-driven implements in the field. Tractors can even basically steer themselves!” Jay Weir

Mike Donohoe

The James R. Weir Insurance Agency has merged with Arthur J. Gallagher, one of the worlds largest insurance brokers. We both

say ‘hey Joe Farmer’s tractor’s water pump is going to give out in ten hours.’ We can call the farmer and say stop! We can be out in an hour and fix it before it breaks. That’s the technology that we have now. From what I’ve seen, the equipment you sell is quite an investment. Oh yes, the investment in the machinery these days is astronomical. Customers will look at spending up to $300,000–$400,000 on a piece of equipment. So we sit down with them and show them it’s not necessarily a matter of just being able to afford it, we break it down so they can see how much the machine will cost them per day, or per bushel. We need to show them how the investment will work for each client. We’ll analyze it for them to see if it’s a good purchase in the long term. Sounds like more of a consultative approach. How have things changed in terms of what you sell and how you sell it? Primarily we sell equipment to cash crop farmers, mostly tractors and combines. What’s changed over the years is the complexity and cost of the equipment. Because of that we are now looking to have

share the same philosophical commitment that puts our clients first and now we can offer our clients a greater level of specialized

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insurance and risk management insurance expertise. The merger represents the coming together of two well known companies to better enhance our client relationships.

Arthur J. Gallagher & Co. Phone: 507-387-3433 208 N Broad Street | Mankato, MN 56001 3600 American Blvd. West, Suite 500 Bloomington, MN 55431 16

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Kibble Equipment In Brief Kibble Equipment has been serving southern Minnesota, in one form or another, for more than 40 years. The family-owned business has eight stores the region can draw upon for parts, service and sales. They pride themselves on topnotch service and support, combined knowledge of highly-trained people and a solutions-based approach. Their mission is to be the go-to John Deere dealership in the region.

Steve Kibble | Kibble Equipment, Inc.

a seat at the table with a farmer not just as a salesperson, but as a consultant and problem solver. We listen to them to get an understanding of what would be best to fit in with their operation. Every farmer’s needs are different. There are great financing and warranty options now. So rather than just be a salesperson we strive to be true account managers and offer solutions for farmers and our customers. What are your top sellers? We primarily sell farm machinery to row crop farmers growing corn and soybeans, equipment like tractors, combines, and tillage equipment. But with Mankato being a metropolitan area, we also sell a lot of consumer products such as lawn mowers, utility tractors and Gators. And in Southern Minnesota there are quite a few hobby farmers and large property owners that come in for a tractor with a blade or a front-end loader for doing chores around their property. What’s the trade cycle on one of these big pieces of equipment? I would say a normal trade cycle is five to seven years. The machines last longer but typically users like to keep up-to-date with technology or warranty. It’s kind of like a car, after so many miles it’s ready to trade in. Plus, in that time, a lot of farmers will grow or change in some way so their equipment needs change.

Connect Business Magazine is excited to

Welcome Lisa Cownie, Editor

Get in touch with Lisa: editor@connectbiz.com

Is the face of your typical customer changing? The U.S. Department of Agriculture puts the median age of farmers nationwide at 58 years old. So in the next five to ten years we will see a tremendous turnover of farmers. What is disturbing to me though, is that there are not a lot of younger ones coming up. There just is not a lot of interest. Maybe they don’t see the potential to staying on the farm so they get jobs elsewhere. And even if they wanted to go into the business, the capital requirement to get started is out of reach and securing land nearly impossible. So that’s a concern in the next 10 to 15 years, are we going to have enough farmers to continue? I think you are going to see more and more consolidation of farms because of that reason. I imagine when the younger generation does get involved, it’s a different approach? We primarily deal with that median age farmer, but we try to involve the next generation coming up, even though they are not the decision makers yet. They are the ones typically running the equipment and understanding the technology. They are the future of what we’ll be dealing with. And, yes, their demands are a lot different than their fathers’ were. They don’t want to deal face to face, they prefer email or they’ll just send us a text to ask about service or what something might cost. So our way of doing business has changed and will have to change even more. It’s not the traditional sit down with a handshake anymore. I noticed walking in you offer more than machinery, I saw quite a bit of apparel in the showroom as well! It’s amazing how people are brand loyal. Whether it’s John Deere JULY/AUGUST 2016

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“We really feel like we are a step above our competition when it comes to our field technicians and their training. It’s a good balance because actually when planting and harvesting starts that’s when our sales department slows down a bit and our parts and service department gets very busy.” or Case International or Caterpillar or New Holland, they are all prominent in the machinery business. When you look at seed companies, it’s Pioneer, Dekalb or Channel. You can tell what brand a family likes because they all wear the hats! We sell a lot of John Deere apparel. I equate it to Harley Davidson. They’ve done a great job of marketing their apparel. John Deere will put a logo on anything!

That’s what we really hang our hat on. Our technicians are some of the best trained and most knowledgeable people in the business. We really feel like we are a step above our competition when it comes to our field technicians and their training. It’s a good balance because actually when planting and harvesting starts that’s when our sales department slows down a bit and our parts and service department gets very busy. And when the industry is having a down year, parts and service is our lifeline.

You told me sales is really only part of your business, with parts and service making up the other 30%. Yes, another big part of our business is our parts and service department.

Are we in an up year or a down year? I would say we are in a down year right

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now. Although we are coming off of a pretty good cycle. Farming is like everything else. It cycles. Currently, commodity prices are down considerably compared to where they were two or three years ago. It’s still not tough times like the 90s. That was bad. Commodity prices, at best, are break even right now. A difference between now and the 90s is that most farmers are healthier than they were back then. And interest rates are better. I think around here our savior last year was that we had one of the best crops we’ve ever had and that helped a lot of farmers out financially. Farmers have learned to use the good years to get through the bad.

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There are elections coming up, anything on the political landscape that might impact the ag industry or your business? The biggest thing that could affect our business will be what happens with ethanol. RFS, renewable fuel standards, is an issue we keep our eye on. It’s a law that was signed back in 2005 when George W. Bush was President. It basically dictated how much ethanol needed to be used in the next 15 years. Ethanol is an additive for gasoline, it replaced a toxic additive (MTEB) to help make gas cleaner. It’s a healthier additive and it comes from corn which helps lessen our dependence on foreign oil. We have to keep our eye on it because ethanol has really affected our business and farming. If we didn’t have 20-some ethanol plants in southern Minnesota and northern Iowa that farmers can deliver corn to, corn prices would probably be half of what they are now. It is just one more source for them. If we didn’t have ethanol

we would have a way over-abundance of corn in the United States. Also, last year they passed the tax extension credits that help business owners, such as farmers. So that’s an issue we keep tabs on. Otherwise, I don’t see anything politically that will be a big game changer for agriculture. Any regulatory issues you are concerned with? There are some that need to be dealt with, such as water and air quality issues that need to be improved, but we need to be sensible about it. Some of the things they come up with to regulate are silly. Not long ago, there was a dust bill that was meant to deal with dust pollution. Regulators were actually going to try to monitor dust coming from a field and if a farmer had too much dust stirring up, they would go after him or her and levy a fine! But bills like that are why we have good lobbyists to watch things on a state

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and federal level. I do want to say that I believe farmers are better stewards of the land than anyone. Farmers get a bad reputation for polluting the land with chemicals and fertilizers, but farmers care about the land. They are very, very careful about how they apply chemicals, fertilizers and manure. Everything is monitored and documented. The farmland in our region is one of our treasures, and the ag community works hard to keep it that way. Editor Lisa Cownie, also of KEYC News 12, writes from Mankato.

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COLLABORATION CONNECTION – SPECIAL REPORT

Connecting Area Ag SCC’s Center of Agriculture strives to connect education and industry. By Lisa Cownie There are nearly 4,000 agriculture-related job postings in Minnesota alone, and not nearly enough talent out there to fill them. In fact, a recent study shows nationwide 39% of agriculture positions go unfilled. “It has reached a critical point now,” says Brad Schloesser, Dean of the Southern Minnesota Center of Agriculture at South Central College in North Mankato. “In the ag industry there is just tremendous need.” The Center is working to close that gap. It was created four years ago to figure out why the pipeline of talent is going dry in that industry, and just what to do about it. Schloesser says, “Our goal is to align the resources we have academically, with our industry resources to help meet the workforce needs of agriculture. For instance, there are 340-some high schools in Minnesota, less than 200 of them offer ag-related classes. We are working to change that.” Schloesser speculates the hardships in the 1980s and 1990s started the downturn in resources being spent on agriculture education. “The 1980s were financially-challenging times for farmers. As a result, the attitude or commitment toward that industry was not positive. Subsequently, funding was not given for ag programs in schools. And the students also weren’t getting encouragement at home. Because of the challenges of that time financially, mentally and emotionally, the conversation with so many young people was ‘don’t even think about coming back to farm and don’t be employed in the industry’.” Changing those attitudes and stereotypes is the first challenge for the Center. But Schloesser knows they can’t do it alone. Collaboration is a key component for the Center of Agriculture. It has aligned itself with key industry partners, hoping to gain insight from them. “We are asking our industry partners to validate what we are teaching, are our graduates equipped with what employers need? We ask them if they are coming out of our institutions with the 20

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right skills. So really the center is trying to fine tune the alignment between workforce needs and institutional preparation.” As of now, Schloesser says Minnesota’s higher education institutions are not keeping up with the demand. Between the Minnesota State Colleges and Universities System (MnScu) and the University of Minnesota, there were 1,063 graduates in ag-related fields in 2014. There were 3,824 jobs posted online. Schloesser says that means they need to reach students earlier and reach more of them, with guided pathways that can be rewarding and provide significant earnings here in Southern MN. “We are working with high schools to identify students who have some interest and encourage them to go into the industry. We are starting as early as middle and elementary school.” He says once the message gets through, students are surprised by the opportunities available in the industry these days. “We are talking about career opportunities that are multi-faceted. It’s not just production agriculture, it’s finance, technology and a variety of professional services. There are careers that are exciting and often times entrepreneurial.” As an example, Schloesser recently visited an urban farm producing tilapia fish and fresh greens in an aquaponics system that was integrating biology, chemistry, fish farming and growing greens all in the same building . He says, “This is exciting, in demand and part of our future food production system.” He points to ag lending as an example of one facet with a lot of need. “A lot of ag lenders are getting older and looking to retire, subsequently there are a lot of lenders in need of ag specialists. Just in Blue Earth County alone there are 56 postings. So if you like finance, a good option might be to become knowledgeable in the ag industry. It is a very capital-intensive business, so you have to know and understand finance, but also understand the vocabulary of farmers.” The Southern Minnesota Center of Agriculture is one of eight

centers of excellence in the MnSCU system. The centers are meant to keep Minnesota’s economy globally competitive in six critical industry sectors: agriculture, energy, healthcare, information technology, manufacturing and engineering, and transportation. Schloesser says, “The center is here to provide for and be supportive with the issues and challenges of southern Minnesota. We are looking at new opportunities for education, new collaborations with industry and other institutions, to help us get the work force we desperately need here. We are trying to be thoughtful by connecting with leaders in industry. We do a lot of collaboration. At the end of the day we are trying to accommodate needs and provide opportunity.”

The Southern Minnesota Center of Agriculture is collaborating and engaging with a large variety of industry partners to help meet workforce demands and to develop training and seminars. The Center’s partners are leaders in the agricultural industry and have a stake in the future of agriculture in our region. Banking and Legal Institutions: Bremer Bank Citizens Bank Gislason & Hunter LLP MinnStar Nicollet County Bank United Prairie Bank Workforce and Labor Workforce Development, Inc. Greater Mankato Growth Agricultural Organizations: Minnesota Agricultural Interpretive Center—Farm America Minnesota Corn Growers Minnesota Pork Producers Minnesota Soybean Growers National Pork Board Agricultural Businesses : AURI C&B Operations–John Deere CHS Crystal Valley Cooperative Davis Family Dairies Duncanson Growers DuPont-Pioneer Interstate Mills Kibble Equipment–John Deere Minnesota Grain & Feed Assn POET UFC WFS Ziegler Cat Agri-Tourism and Entertainment: Children’s Museum of Southern Minnesota

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Aker co-founder Todd Golly with an autonomous imaging drone and support equipment.

By Carlienne A. Frisch Photo by Kris Kathmann

Aker’s proprietary software pairs with cutting-edge autonomous aerial drones to deliver precision field data and analysis. There is a new farming tool buzzing around the skies of southern Minnesota. A tool that gives farmers a whole new perspective on the growing season. A tool that can help farmers protect crops on the ground from up above. The cutting-edge technology of drones was in limited use just a few years ago, but today unmanned aerial vehicles, or UAVs, are becoming routine in a variety of industries, at the forefront is farming. For a farmer who cash crops corn, soybeans, or perhaps another crop, keeping the plants healthy throughout the growing season is of prime importance. As farms have grown larger, walking the fields to look for problem areas–checking thousands of acres visually–has become impossible. This new technology eliminates that method and can quickly pinpoint problem areas, so farmers can get advice from an agronomist before damage is done. It’s technology that is being developed and put to use above the prairies of Faribault County and even beyond, courtesy of Winnebago-based Leading Edge Technologies, recently renamed Aker. The company is now piloted by two seemingly unlikely partners; Blue Earth area farmer Todd Golly, who is also an agricultural engineer, and his technology and business partner Dominican Republic-native Orlando Saez. The business occupies a former convenience store location at 618 Main Street South in Winnebago, where the not-so-busy U.S. Highway 169 crosses an even quieter Minnesota Highway 109. Originally, the building housed the company’s retail site for sales of drones. For several years, Leading Edge Technologies has offered UAVs to farmers and ag-related businesses who want a bird’s-eye view of fields. But recently the company changed that retail sales model to a more service-oriented one. Finding that customers prefer not to do it themselves, but leave it to trained professionals. One reason for that is the high-tech UAVs are not typical radio-controlled model airplanes. No one stands on the ground, using a radio control unit to pilot the UAV. Golly explains, “It’s all done with a computer, which operates the entire flight of the plane. The flight plan is preloaded into the computer program and controls the takeoff, the mission and the landing. We tell the UAV where and how high to fly, how many passes to make and where to land. A UAV can scan more than 1,000 acres in a day, taking just 20 minutes to cover 160 acres. It provides hundreds of images that are relayed to a computer. It would take a person an entire day to walk those same 160 acres, and the person wouldn’t see everything the UAV sees. It gives immediate feedback and can create a 3-D topography map of the area.” continued > JULY/AUGUST 2016

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Crop Spies

When it became evident to Golly that the market in providing UAV service was greater than potential sales of the drones, he shifted his focus from retail sales to service. Enter the change to Aker. Aker’s service does not require upfront costs, and it relies on its sophisticated image processing and base agronomy, led by regional agronomy partners, for interpretation into a directedscouting mobile app to quickly find high-risk zones. The farmer, or a specialist from an agricultural co-op or University of Minnesota Extension office, can then walk or “scout” the specific area of the field where there is a high likelihood of field issues, rather than making random walks through the field. Aker is training about 20 pilots this season to cover Minnesota and Iowa, flying their

Aker’s service does not require upfront costs, and it relies on its sophisticated image processing and base agronomy, led by regional agronomy partners, for interpretation into a directedscouting mobile app to quickly find high-risk zones. fleet of SenseFly eBee UAVs at least three times per field during the growth season. Beyond reporting plant health, the service can provide plant population analysis, topography, drainage assessment, residue variability, equipment audit, and crop loss assessment, as well as provide prescription maps for unwanted vegetation. Aker is the only innovative service provider carrying a “three-day for results” guarantee. Aker now employs four people full time, a summer intern and 8-12 contracted flight team members (pilots and visual observers), most from the Minnesota State University-Mankato aviation program. Whereas Golly originally advertised on area radio stations and in farm magazines, he now has hired a sales representative who visits agricultural retailers to acquaint them with what Aker offers. Golly explains, “Farmers work through their agronomists and farm retailers.” Agriculture seems to be in Golly’s DNA. The son of educators who took up farming, he grew up on a corn and soybean operation that now measures 6,000 acres. His off-farm job while in high school was working the night shift at the Green Giant corn pack in Blue Earth. But he has always been smitten with technology. Math and science were his favorite subjects at Blue Earth Area High School. After earning an agriculture technology degree from the University of Minnesota, he worked as a consultant to the University of Minnesota Precision Agriculture Center. His eagerness to apply his education and experience to the family farm led him to return to full-time farming 20 years ago. Despite being involved in both

Aker/Leading Edge Technologies | Winnebago

Aker software provides detailed field maps pinpointing problem areas.

Crop Spies

Todd Golly — Just The Facts What would you like to have studied? I would like to have more general business education. Tell about your family. My wife, Mindy, is a homemaker. We have two children, Thomas, age 10, and Giselle, who is four. She loves to farm, to be with Grandpa and Dad in the tractor. Both children enjoy math and science. What do you do for relaxation? I love sitting in the combine. I also enjoy hanging out with my family, and I play basketball twice a week as stress release. Of what accomplishment are you most proud? I’m proud of maintaining the family farm and

the family’s success, whether it’s the farm or the business. What possession do you value most? The farm itself. What intangible? I’m grateful for my own family’s support. They support the time I take for the business because they know it’s for a better future. Three words that describe you: Quiet, intelligent and loyal. If you weren’t involved in Leading Edge Technologies and Aker: I’d be farming full time. 25

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Crop Spies

ag-tech businesses, Golly still spends much of spring and fall working alongside his father and his brother Tim, an aerospace engineer, who dedicates his vacation time to farming. “We have always used a lot of technology on the farm,” Golly said.  “In using the drones ourselves, I saw there would be a great potential for them in agriculture. Leading Edge Technologies was my first off-farm business venture.” Its co-founder and part owner, Bob Weerts, is a Winnebago entrepreneur involved in many local business operations. (Look online for Connect Business Magazine’s January 2000 cover story on Weerts). Golly continued, “We are unique in bringing technology to agriculture in a traditional way because we’re not trying to change farmers’ habits, just supplying them with tools to use. We’re not changing the complex relationships in agriculture among farmers, co-ops, county extension officials and seed dealers.” Golly’s change of direction from sales to service coincided with his contact by Saez, who was looking for a way to make students in his native country, the Dominican Republic, enthusiastic about science. Because the country has only two industries--tourism and agriculture--Saez wanted to provide an agriculture-based science project that would make an impression on high school and college students. To complement his own credentials, he searched online for an expert with the skill sets he was seeking. “I wanted to do a drone project in agriculture and was looking for an ag drone expert,” Saez explained. “I found Todd, who understands

Crop Spies

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A Drone’s-Eye View of Orlando Saez Orlando Saez, co-founder and CEO of Aker, describes his early life as “humble.” His parents are from the Dominican Republic and Puerto Rico. Saez got his high school education in Puerto Rico and studied computer engineering at the University of Puerto Rico. Since his sophomore year at the university, he worked full time to support his education and his family, while carrying a full class load. He credits these years of tough discipline as being important for his development of determination and a work ethic. Saez holds a Bachelor of Science degree in computer engineering from the University of Puerto Rico, a Masters degree in computer science from the Illinois

Aker/Leading Edge Technologies | Winnebago

In the workshop sits a prototype drone designed to autonomously seek out weeds and spot-apply herbicide to them.

both technology and agriculture, and I phoned him.” Golly picks up the story: “Orlando asked me and Eric (flight operations manager Eric Johnson) to go with him to the Dominican Republic. It was winter (2014-15) here, so we said, ‘Sure!’ We carried two drones onto a commercial airliner and flew to the capital city of Santo Domingo. From there we drove one to one-and-a-half hours in a rental car part way across the country. It’s a small country. We went to two schools and flew the drones for professors, researchers and students. We also flew drones over sweet corn fields, avocado orchards and mango orchards. Then we returned to Minnesota.” The adventure continued with a second trip a few months later.

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Institute of Technology and a Master of Business Administration from the IIT Stuart Graduate School of Business. Saez is the president of Saez Brunner Capital Group, a strategic infrastructure investment company. He has led several early stage companies with a combined exit valuation of $50 million, including Boingo Wireless, the largest WiFi hotspot in the world. He held several software engineering and product management roles at Motorola and AT&T Bell Laboratories. He was the CEO of CityScan and was the director of the Office of Entrepreneurship, Innovation and Technology for the State of Illinois, where he led a $20 million early stage venture fund. Saez’s involvement in civic and professional organizations includes the Economic Club of Chicago, the Illinois Innovation Council, Chicago TechStars, Chicago Innovations Awards, the ASPIRA of Illinois Charter School (committed to selfdetermination of Latinos and other underserved youth), and 50 Startups, a global early-stage startup accelerator and fund.

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Crop Spies

“What motivates me is to have kids become producers of technology, not consumers of it,” Saez says. “UAVs are visibly cool, and this can inspire a new generation to play and learn.” Golly and Saez delivered data the UAVs had gathered, made presentations to professors and researchers and developed at least one long-term relationship with a student. “One of the kids continues to email and text me,” Golly said. “He’s 14 or 15 now. He’s following Orlando’s advice and taking more English classes. His goal is to fly UAVs commercially.”   Saez explains his motivation, “I came from very humble beginnings, and I wanted to give back (to my community) what had inspired me to become an engineer. When I was a child, I was playing a pinball machine, and when I ran out of money I went to the Radio Shack next door. The manager gave me a book to read on basic computer programming. “What motivates me is to have kids

become producers of technology, not consumers of it,” he says. “UAVs are visibly cool, and this can inspire a new generation to play and learn. I needed to connect this new technology with agriculture. I learned about Leading Edge Technologies on the internet. After a few calls with Todd and Eric, I became convinced that they knew about UAV technology and agriculture, so I visited Winnebago. I made several trips to Golly Farms, and Todd and Erik came along on several trips to the Dominican Republic. After making several trips, and getting to know the team better, I decided to become involved in the business.” For Saez, Winnebago offers a perspective considerably different from his other business ventures and his residence in downtown Chicago. He spends work days in Winnebago and makes his home in

Blue Earth during the week. He said, “My girlfriend has been here several times, and we both enjoy the urban and rural contrast in our lives.” When Saez bought into Aker, he became its chief executive officer and initiated the rebranding into Aker. He has been quick to develop and invest in the community and has met with several economic development leaders to understand the community and how the Aker expansion will impact the community. The company is in discussions with the Southern Minnesota Initiative Foundation to expand a partnership for local collaboration.    Saez said, “I’m excited to amplify Todd’s agriculture knowledge with my technology background for innovations in precision agriculture. We have a fantastic team, and Winnebago has some of the best talent in large row crop farming anywhere in the country. We plan to recruit and train about 20 interns this summer for UAV flight and scouting operations. Once we establish roots in the region, we will be expanding into southern states and to Latin America.“ As of May, Aker had garnered interest from seven “angel” investors from the

Crop Spies

Experts Weigh In On UAVs “UAVs can give you information you just aren’t going to get otherwise,” says Brad Carlson, a University of Minnesota Extension Educator in the Mankato Regional Office. “The university has been using them for more than a decade, and they have been used commercially for about five years. The UAV has the chance to reach some places difficult to reach on foot, and it reaches them quickly. You get a much more precise picture of crops than from satellite imagery, which is very coarse. And a 28

UAV isn‘t affected by cloudiness, while satellites are.” The key to using UAVs is, of course, interpretation of the images. Carlson explains, “The big thing is being able to identify problems before damage occurs to the crop, being able to catch a problem prior to it causing yield damage.” Randy Main, agronomy manager at the Farmers Co-op Association in Winnebago, agrees. He admitted that a year or two ago, he was skeptical about the value UAVs would bring to the producer, but this year

he began a program contracting with Aker for UAV services and encouraging crop producers to take part. Main said, “The gentlemen running the company understand what producers need. Now, with the technology of the imagery UAVs can collect, we’re able to collect information that will bring value to the crop producer--plant health, designating problem spots in the field, and then the co-op agronomist coming up with a solution to the problem. I recommend to co-op members who cash crop to have a UAV fly over their fields at least three times over the growing season.”

Aker/Leading Edge Technologies

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Aker/Leading Edge Technologies Phone: (507) 893-4545 Address: 618 South Main Street Winnebago, Minnesota

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Stacey Johnson Owatonna, MN (507) 455-5299

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Web: aker.ag.com and dronesforag.com

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Midwest. The company seeks to close a $1.5 million investment round, and already has a large corporate venture and several potential institutional investors. Regardless of expansion, Saez vows that Winnebago will remain the key market for developing new products and services, hence, his interest in engaging the local business community and universities. As for the cutting-edge technology, Saez said, “We want to build a trusted and relevant way to help growers understand what is happening to their crops in season-in real time--to keep plants healthy. Disease and illness are limiting factors in the crop, and we want to help the farmer do something about it. We’re like a radiologist taking X-rays and empowering our retail partners.” Golly added, “As of May, there was no software on the market that provides all of the services such as imagery, smart scouting and financial impact, that Aker provides. Our goal is to ensure we can launch a successful service regionally this year and rapidly expand nationally and internationally in a few years.” While the company continues to resell equipment, Golly and Saez are betting big on their recent service model of UAV technology under the Aker banner, a service created in response to customers who prefer not to “do it yourself.” Aker provides precision crop monitoring technology primarily to retailers and agricultural consultants who want to foster stronger relationships with their growers. The company also offers a precision weather monitoring system applicable to agriculture and industry, grain management systems and “ruggedized” laptops, which are suitable for flying UAVs.

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Carlienne Frisch writes from Mankato.

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very spring, Bruce Jones gets an email from the Minnesota Corn Growers Association. Jones, who is the chair of the Automotive and Manufacturing Engineering Technology Department at Minnesota State University, Mankato, looks forward to that note. It’s a request to schedule a time for his students to travel to the Minnesota Corn Growers Association headquarters in Shakopee to prep the association’s fleet of golf carts and other promotional vehicles for the summer parade season. Jones and his students have been helping to maintain those vehicles, which all use a corn-based ethanol product known as E85 as fuel, as part of a partnership between the university and Minnesota Corn, as the association is known. “It’s been a wonderful partnership,” says Mitch Coulter, the marketing biofuels director for Minnesota Corn. “These guys are very important to us. They have been involved with several of our working groups, and we have been very pleased with what they’ve done.” The relationship started almost 20 years ago, when interest in alternative fuels started growing. Minnesota Corn needed to conduct research about possible expanded uses for ethanol, a renewable fuel made from corn and other plant materials, and connected with Jones at Minnesota State Mankato. “We paired up with them to do that research and have been involved with them since then,” Jones says. Minnesota State Mankato students have helped research how ethanol works in small engines, how it works in high concentrations and the effect it has on fuel system components. One particular project focused on the use of ethanol in weed whackers, which have small engines that are designed to run on gasoline or 10 percent ethanol but could be exposed to a 20 percent blend of ethanol. The whackers had been consistently burning out, and Minnesota Corn wanted to know if it was related to the ethanol blend. “They tested 24 consumer grade weed whackers and four different fuels; gasoline, E10, E15 and E20, trying to figure out if it was the fuel or the parts in the engine causing the problem,” Coulter says. “Come to find out it doesn’t matter what fuel you use—they wear out at about 50 hours no matter what. They just aren’t made to last for longer than that. So through that research, we were able to say that it isn’t because of the ethanol.” Another recent project involved fuel storage in small engines. If the fuel tank isn’t empty before the engines are put into storage, the fuel goes bad—and there was concern that it was related to the ethanol. The student research teams were able to discover that because small engines do not have sealed fuel systems, ethanol can cause issues with long-term storage on certain materials. “What they found out is that if you don’t seal the system, then the fuel can cause issues,” Coulter explains. “So if

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you seal the system, you won’t have that problem.” The results of the research aren’t always in favor of ethanol—but that is never the point. Jones has been pleased with Minnesota Corn’s commitment to finding answers, no matter what they might be. “They want to know what the answers are,” Jones says. “They want objective feedback—they want the truth, whether it’s good, bad or indifferent. And we have had bad results in the past for sure.” In those cases, Minnesota Corn often asks the team at Minnesota State Mitch Coulter Mankato to help them take the next steps as well. “At that point, they want to know what can be done to make whatever it is work,” Jones says. “They want to find out if there’s a solution that can be positive. They want to take the next step.” The research that Jones and his students conduct for Minnesota Corn helps the association better promote ethanol and its uses, both to the public and to lawmakers. Minnesota State Mankato helped with the research that led to a change in federal law about the amount of ethanol that can be used in gasoline, for example. “We use their research to help dispel myths on the hill and in our marketing materials,” Coulter says. “We’ve even had them come talk to the legislature with us at times.” The students, meanwhile, benefit from the opportunity to work on real-world research projects and to see how that research has an impact. They gain exactly the kind of experience that employers are looking for, Jones says. “The number one thing that employers look for is real-world, applied experience—as close to what they’d be doing in industry as possible,” he explains. “These research grants with Minnesota Corn allow our students to do exactly that. They are working with budgets and deadlines, they have to prepare reports and presentations. This is the real deal.” The ethanol-specific experience serves them well when they get into industry as well. “We have graduates working at Arctic Cat, Polaris and Toro, just to name a few,” Jones says. “And when they have had an opportunity to work on a project involving ethanol, then they have a head start.”

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One graduate of the program actually called Jones to discuss an ethanol-related issue that was causing problems at the manufacturing firm he was working at. The company specified that fuel lines for a product be made out of a certain material, but they were having trouble with the hoses when they used ethanol. The alum knew that research was happening at his alma mater, so he checked in to find out what they might know. “We told him that we had found out that the material worked fine with higher blends of ethanol,” Jones says. “We suggested that they check with the supplier of the hoses, to be sure that they were getting what they had asked for in terms of materials. And it turns out that what they were getting was a cheaper grade material, which was causing the problem.” Minnesota Corn benefits from each of the students who take their experiences working with ethanol into the workforce with them as well. “The fact that these students come out of the program with an understanding of ethanol is so important,” Coulter says.

“The fact that these students come out of the program with an understanding of ethanol is so important,” Coulter says.

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Over the years, the partnership between Minnesota State Mankato and Minnesota Corn has grown to include more than just research. Minnesota Corn sponsors the school’s Formula SAE team, for example, which uses E85 to power its vehicles. This past spring, Minnesota State Mankato was able to take a team of 24 students to Michigan for the five-day competition, where they placed 17th out of 120 team from 12 countries. “That was by far the best we’ve ever done,” Jones says. “And we would not be able to participate in that competition without the help of Minnesota Corn.” The appreciation goes both ways. Coulter, who has worked closely with Jones and his students for several years, says that the program is “second to none” and has been great to work with. “I really believe it’s been good for both sides,” he says. He’s especially appreciative as the Minnesota Corn golf carts and mini-semi trucks roll out at more than 125 events over the summer and fall. Those vehicles help demonstrate that ethanol works in small engines, which helps educate the public and promotes the work of the association. And it’s possible, in part, because of the annual maintenance completed by Minnesota State Mankato students.

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COWNIE CONNECTION

The week this publication hits your desk, marks the week seven years ago that I moved back to Mankato. Back after a 16-year adventure that took me to California, then to Washington D.C., then all the way back across the country again to Hawaii. Lisa Cownie But seven years ago, I Editor came home. Mankato isn’t home to me in the traditional sense of the word. I didn’t grow up here. In fact, I only briefly lived here in the mid 1990s, spending a couple of years on the radio and anchoring the 10 p.m. news for KEYC. But this community embraced me in that two-year stint, and Mankato became home. Seriously though, and I know 16 is a lot of years to stay away, but I barely recognized my Mankato when I returned.

The first time I lived here, Madison Avenue pretty much ended where Snell Motors is today, only at that time it was Menards. And the area where Menards is now? Fields. And the CTC campus (I believe the company now goes by Fpx and is located downtown) held the only buildings on the other side of Highway 22, where now we have Eastwood Industrial Centre, home to Eide Bailey, AgStar, Coldwell Banker Commercial Fisher group and a host of others. Back then, Minnesota State UniversityMankato was Mankato State. The Mankato Civic Center had just opened, (we did manage to get in some good shows before we left.) Mayo Clinic Health System was ImmanuelSt. Joseph’s, (where my first son was born). When I think back on all of that, 16 years doesn’t seem like so long ago. And, as I drove across Minnesota seven years ago, I noticed the vitality of some of the surrounding communities. The giant success of the business community in Blue Earth to the bustling streets of the specialty shops in St. Peter, which has definitely grown in number. I only take you with me on this walk down memory lane to illustrate how much the region has changed over the last two decades. And I don’t think we’ve seen anything yet. In the seven years since I’ve been back, the region has continued to change even more. Not only grow, but thrive! With increased opportunities, though,

also come increased challenges. One of those, as demonstrated in this issue, will be workforce. But we’ve got the region’s top minds on the task of getting that figured out. And that is really the secret to the strength of this region, the people. We are brimming with optimism, good will, work ethic, a love of community, and knowledge. But more importantly, the drive to learn the things we don’t know by collaborating with others. That’s what makes the future so exciting! Though buildings and locations have changed, I’m happy to report, the people have not. And that’s what I was counting on when I returned. I have lived in many different areas of the country, and I can tell you, it’s the people that make this area so special. People are the foundation, no matter what’s changing on top. We all have much to learn from each other. That’s where we come in! Connect Business Magazine brings you the stories of the cast of characters helping this region perform so well. We strive to bring you their tales in hopes you will gain some meaningful insight. Our region is on the cusp, and we at Connect Business Magazine will work to connect you with people, resources, information you need. I look forward to working with all of you! I look forward to sharing the stories of the characters that live and work here. Every good story starts with a good character. And I just a love a good story.

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COLLABORATION CONNECTION — SPECIAL REPORT

Welcome to the GreenSeam! A new branding effort aims to bring awareness of agricultural expertise in the region. By Lisa Cownie

We no longer just live in Mankato or in Fairmont or in Redwood Falls, or even just in southern Minnesota. We now live in the GreenSeam. Agriculture is the largest business segment in the area referred to as the GreenSeam, the southern Minnesota and northern Iowa agricultural region. The region has an economic link between production, processing, professional services, education, technology, research, manufacturing, transportation and more. Both directly and indirectly, a majority of businesses in the region are impacted by agriculture. Now that it has a name – a brand – the region is pulling together to make sure it’s recognized not only regionally, but nationally and internationally as well, as an innovative region for business, industry and growth. “We have an ecosystem of ag here. We have diversity and that helps us support each other. We just want to package the energy and inertia around everything that’s happening. We want to educate people so that we can attract the talent and the business here to retain people. We want to have innovative research happening right here in our region, right here in the GreenSeam,” explains Sam Ziegler, who was hired by Greater Mankato Growth just over a year ago to head up the project. “We want the area to be a magnet for talent, technology and business.” Although Greater Mankato Growth initiated the venture, and spent significant time and resources to make it a reality, it is truly owned by all the different stakeholders

throughout the area. All who have a vested interest in making the GreenSeam as well known as Silicon Valley. Steering committee chair Jim Marzolf says, “We are trying to create a synergy between business, education and community. We are pulling everything and everyone together. We have to shine the

“We have an ecosystem of ag here. We have diversity and that helps us support each other. We just want to package the energy and inertia around everything that’s happening.” light on this so that other people can see it. At the end of the day it should be a no brainer for businesses to locate here. We have the foundation and we have the talent in the workforce. There is just this cohesiveness here.” A steering committee made up of experts in a variety of fields who work closely with and in the ag industry, has been working behind the scenes for years. The hiring of Ziegler last year cemented their position and their commitment to the cause. They

launched to the public in June. The foundation here –soil, sun and farms—has always been solid. But one goal of the GreenSeam is to also show off the value-added components found here. Food processors, support services, professional services, everything from engineers to accountants to manufacturers.

Sam Ziegler

Ziegler says, “We have the breadth of knowledge in this region to support this umbrella of agriculture, this epicenter if you will. There are so many components under this umbrella that people don’t even realize. That’s where the GreenSeam comes in!” Now that the region is equipped with a name, a brand and a message, the hope is to have the GreenSeam shine as a diverse, balanced and sustainable agriculture hub. “The role we are playing is that we are JULY/AUGUST 2016

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COLLABORATION CONNECTION — SPECIAL REPORT

Ziegler has spent the last year managing multiple teams of industry experts in four core areas; promotion, education, business development and public affairs. Each team has built a strategic plan as the group moves forward. trying to connect people that normally don’t come together. You have ag associations, Explore Minnesota, manufacturing associations, as well as city and county chambers and economic development groups. Our hope is to bring them all together. Alone each has a voice, but together we can magnify that voice and have greater impact. We can do more outside the

region and more within too.” Doing more within will start with getting area businesses and organizations to share their stories of how they relate to ag and how the ag industry affects them. The “I Am Ag” campaign has started, meant to highlight businesses, most not traditionally thought of as ag, and their connection to an industry that has worldwide impact.

Ziegler says, “There are businesses, individual companies and cities all trying to promote themselves. But that is limited. We are trying to bring size and impact and scope to raise it to a national and international level. But we need to hear from everyone. We don’t know every business or the complexities of each marketplace. That’s why these “I Am Ag” stories are so important. We have now started the conversation!” The GreenSeam is a way to take that dialogue even further. A significant amount of time has been spent fleshing out the approach. Ziegler has spent the last year managing multiple teams of industry experts in four core areas; promotion, education, business development and public affairs. Each team has built a strategic plan as the group moves forward. The limiting factor at this point is how to talk about it. Ziegler says, “Agriculture is a challenging word. It’s hard to define in the sense we are talking about. We have to get people to think beyond dirty fingers and hard manual

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Welcome To The GreenSeam!

labor. With advancements in research and technology, it’s truly so much more.” The awareness piece is still evolving. “There are no state charts that show ag as an industry. The only statistics shown are agriculture production. But that doesn’t give a good picture of the impact ag has on a community as a whole. It doesn’t show the value added, quality of living piece. We’re trying to gather that data and reach out and say, ‘hey, look what’s here!’” It’s important to note, although GMG initiated the GreenSeam, it’s truly a collaborative effort. Ziegler, his teams, the steering committee, all reached out to communities and businesses across southern Minnesota and northern Iowa, helping them find their voice. Now striving to unify it. Ziegler says, “We want everyone to get intertwined. The call to action at this point is to get everyone to reflect on themselves. To look around and see how agriculture impacts them and how they are connected to it. We are all in this together. This brings us unity. United in trying to make agriculture mainstream. We have a very cool environment here to work in. It’s a very noble, very complex industry with great leaders.” GreenSeam was a very intentional, wellthought-out brand. Ziegler says, “What we hear is this area has a lush color of green. And the region feels prosperous so green can represent that as well. Plus the U.S. Department of Agriculture maps of production all use green and our region is always the darkest shade on the graph as far as animal production, crop production and annual income. “Seam stems from the fact that we are this location in a valley, a seam of richness and vitality. Seam represents cohesion and the sewing together of partnerships.” The hope is that Green Seam will become more than a place, it will become a state of mind. Marzolf says, “Our vision with the brand is that people, businesses and communities will use it as a co-brand. They can attach themselves to the GreenSeam. So businesses will have our logo next to theirs. It is exciting and will be interesting to see how this expands and how others visualize themselves and their role in it.” To share your “I Am Ag” story or for other ways to embrace the GreenSeam, go to www.greenseam.org.

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BUSINESS BRIEFS

The United States Census Bureau recently released its 2015 population

According to the U.S. Department of Agriculture, far fewer people are

According to passenger surveys, Minneapolis-St. Paul International Airport

statistics for Minnesota cities. From 2014 to 2015, of the 852 Incorporated Jurisdictions (cities) in Minnesota, 316 had positive population growth, 152 stayed the same and 384 lost population. Cities in the Greater Mankato region fared well. The table below summarizes the growth rate over the last year, as well as a look back over the last five years (back to 2010). Eagle Lake is the 2nd fastest growing city in the state, with a population growth rate of 5.5% over the last year. It trailed only the City of Orr (population of 335) who had a growth rate of 10.6%. The City of Mankato is the 22nd largest city in the state and gained 207 people from 2014-2015. St. Peter ranks 42nd out of 97 when looking at cities in the state that have a population larger than 10,000 over the last five years (2010-2015). In fact, when looking outside the Minneapolis/Saint Paul metro, St. Peter ranks 6th in terms of growth in Greater Minnesota (of cities larger than 10,000 in population).

living on farms and ranches today than a century ago. That being the case, most are still family-owned operations. Even with the fewer number, U.S. farmers are feeding more people than ever before, including families in other countries. A recent report from Caledonia Solutions, a research and consulting firm in Minneapolis, shows that market prices and a generally “down” farm economy have most farmers tucking away the checkbook, except, it seems, when it comes to new technologies. The report found as many as one out of every four large farmers are actually planning to increase spending on data and equipment technology. “The first wave was mainly driven by yield advantages, and the second wave mainly by cost savings,” says Dr. Robert Hill, principal of Caledonia Solutions. “In this third wave, it looks like the farm operators are getting a strong dose of both benefits. We are in the early stages of the third wave, which is the explosion of digital farming and big data utilization in the farming industry in the U.S.”

is one of the world’s best for its size. MSP placed 10th on Skytrax’s World Airport Awards, also known as the Passengers Choice Awards. MSP was in the category for airports with 30 million to 40 million passengers per year. Overall, it ranked 76th. The survey was based on over 13 million surveys covering 550 airports from June 2015 to February 2016. Survey-takers rated each airport on different parts of the airport experience, including parking, check-in, security, friendliness of staff, restrooms, cleanliness, amenities offered and departure at gate. Skytrax, established in 1989, are specialist research advisors to the air transport industry, based in London, UK. Skytrax undertakes qualitative Product, Service and Passenger audits and research studies for airlines, airline alliances, airports and related air transport suppliers across the globe. Skytrax provides a unique depth of experience and knowledge of this specialist market. Qatar Airways topped the list of airlines.

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Forbes has named four Minnesota companies among Americaâ&#x20AC;&#x2122;s 100 best employers. The Mayo Clinic ranked highest on the list coming in at No. 9. The Rochesterbased company employs 59,000 people. 3M made the list at No. 51. Minneapolis-based companies Fairview Health Services and Medtronic rounded out the Minnesota companies in the top 100 coming in at No. 60 and 97 respectively. To compile the list, Forbes anonymously surveyed 30,000 employees at companies that employ more than 5,000 people. It was based on how likely respondents were to recommend their employer and how they feel about other employers in their industry. Forbes specializes in business and financial news. Core topics include business, technology, stock markets, personal finance, and lifestyle. You can find the above list and more lists like it at Forbes.com.

voltaic solar energy generating facility will be capable of generating enough electricity to power approximately 15,000 homes with 100% Minnesota sunshine. It is located approximately four miles east of the city of Marshall. The Project is expected to interconnect to the existing Lyon County Substation located on the corner of County Highway 9 and 290th Street. The Substation is owned

and operated by Northern States Power. According the project owner, Marshall Solar LLC, the Marshall Solar Energy center is expected to boost the local economy by generating $180,000 in new tax revenue that will benefit local government and area schools, at peak construction employ close to 250 workers, and create education opportunities with hands-on solar related projects for students.

According to Xcel Energyâ&#x20AC;&#x2122;s 2015 Corporate Responsibility Report, Xcel is on track to cut carbon dioxide emissions by more than 30 percent by the year 2020. The report states the company has also cut water consumption at its operations by 30 percent. By adding wind and solar power, retiring aging coal plants and expanding energy efficiency programs, the company has significantly reduced emissions and water consumption across its operations. The Marshall Solar Energy Project in Lyon County, is expected to be in service by December. The 62.25-megawatt photoJULY/AUGUST 2016

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CONNECTING BACK

5 YEARS AGO

JULY/AUGUST 2011

Commercial Industrial

Our cover character was Mike Nolan, director of the South Central Minnesota Small Business Development Center and serial entrepreneur. Nolan noted, “Too many people walk in saying they want to provide the highest quality service or product at the lowest price. I always respond, why not provide the highest quality and charge for it?” Other featured characters were Nancy Dobson of Pediatric Therapy Services in Mankato, and locksmith Mike Foty, of Foty Lock and Safe in Fairmont. 10 YEARS AGO

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JULY/AUGUST 2006 Dr. Bill Rupp, President and CEO of ISJMayo Health System in Mankato graced our cover in July 2006. Dr. Rupp, an oncologist, taking on the task of transforming Mankato into one of three regional hubs Mayo would support. Others featured were Counseling Services of Southern Minnesota based in Saint Peter, and Mankato- based CHAMP Software. 15 YEARS AGO

JULY/AUGUST 2001 July 2001 celebrated our 50th issue! Fred Lutz told his tales of being a businessman (Mankato Bottling/Northland Beverage), a community servant (too many to list here!), and a pilot (his passion). His thoughts on a Mankato – North Mankato merger have not yet turned to reality. Lutz said, “If the two cities were businesses, they would have merged decades ago. I don’t know how much longer the two cities can continue this way. Businesses and school districts consolidate, but seldom do local governments.” 20 YEARS AGO

JULY/AUGUST 1996 Twenty years ago, our cover didn’t feature a person, but rather a topic. “Tips On How To Handle Work Conflict” proved to be useful to our readers. Also featured in that issue were MRCI of Mankato and QMC Technologies, Inc of New Ulm.

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BULLETIN BOARD

Local Chamber & Economic Development News

Any chamber of commerce, convention and visitors bureau, or economic development organization in our reading area—large or small, from Amboy to Winnebago—can post on our free bulletin board. For details, email editor@connectbiz.com.

Le Sueur

Region Nine

Julie Boyland, Le Sueur Chamber

Nicole Griensewic Mickelson, Development Commission

Le Sueur’s annual summer festival, the Giant Celebration, takes place August 5, 6, & 7, at Legion Park. The event offers many activities for young and old including, music, a variety of food, refreshments and fireworks on Saturday night at 10:00 pm. On Sunday, crowds will line the 90-plus unit Giant Celebration parade starting at 1:00pm. After the parade is the GIANT CORN FEED. Giant Celebration ends with the crowning of Miss Le Sueur.

What is the first impression you give when your client sees you in their email inbox? Social Media Breakfast – New Ulm presents “The Power of the Inbox” by Trygve Olsen, BizzyWeb’s Director of Buzz Development, on July 29th. This seminar will give you the keys to effective email marketing. Join us from 7:30 – 8:30 a.m. at the Best Western Plus, New Ulm. Visit smbnewulm.com to register.

Blue Earth Cindy Lyon, Blue Earth Area Chamber

Art in the Park began in Blue Earth in late June. Giant Days will be held July 8th and 9th. Party With The Giant on Friday includes a dance, DJ, food, and fun. The Giant Parade down Main Street is on Saturday at 5 p.m. The Little Red Barn in Giant Park

at the foot of our 55.5’ Green Giant opened May 31st. There you can find full information center guides for all of Minnesota as well as souvenirs. For more information on these events and more, visit www. blueearthchamber.com.

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Sleepy Eye

Mankato

Trista Barka, Sleepy Eye Chamber

Julie Nelson, South Central MN Small Business Dev. Center

Bolton & Menk Engineering and Casey’s General Store have begun their new building projects. The city is currently working with Ruhr Development on the purchase and renovation of the local hotel and the construction of the new community event center that will join these two facilities into one large facility. The Berg Hotel is in the process of being renovated. The only café on Main Street, has been purchased by Jimmy’s Pizza.

No time to attend workshops? We get it – you’re busy running your business, and it requires that you wear many hats. Check out the SBA Learning Center, where you’ll find dozens of free, self-paced training courses and videos related to starting a business, managing a business, financing, marketing, exporting, government contracting and more. Get training, tools and answers via your desktop, when it’s convenient for YOU. Go to sba.gov and click on Learning Center.

Fairmont Linsey Pruess, City of Fairmont

The City of Fairmont welcomes a new business, Graffiti Corner, a frozen treat and coffee lounge. The city was involved with the project by providing tax increment financing and a revolving loan fund program which assisted in the demolition of the blighted property, replacing it with a newly constructed retail building. The Chamber thanks John and Patti Kasper for their continued investment in the community. Check them out at graffiticorner.com or you can find them on Facebook.

Mankato Bridget Norland, Greater Mankato Growth

Greater Mankato Growth is committed to providing opportunities for meaningful interaction between the business community, public policy makers and leading business executives. Our monthly forums bring in compelling speakers to discuss timely and relevant political, policy and leadership issues over breakfast or lunch. Stay tuned for July’s forum “Keeping ‘Current’ on Minnesota’s Changing Power Landscape”. On August 19 we will present “Top of the Class: Improving Education in Minnesota”. Find more information here: greatermankato.com/forum.

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Local Chamber & Economic Development News

Nicollet Alesia Slater, Nicollet Chamber Waseca Kim Foels, Waseca CVB

Enjoy the first weekend activities in August and take in the Waseca Garden Walk Sunday, August 7th and the Waseca Triathlon event is set for Saturday, August 6th, at Clear Lake Park, register at www. finalstretch.com. For more details check out the event calendar www.wasecachamber.com.

New Ulm Sarah Warmka, New Ulm Chamber/CVB

The New Ulm Area Chamber of Commerce welcomes new members: Bob Webb Insurance, Midwest Engineering, and Mike Benz–Edward Jones. The New Ulm Car Hop & Shop Classic Car & Motorcycle Cruise-ins are off to a good start in 2016. The cruises are held the second Thursday of the month, from May through September. Upcoming events include: Crazy Days, July 15-16; Bavarian Blast, July 15-17; Brown County Free Fair, Aug 10-14; and USDakota War Commemoration, Aug 15-21.

Road construction is in full swing in the Nicollet area on the Highway 14 project. Please drive with extra caution. You can follow all the latest updates at nicollet.org. On August 2nd the Chamber will host its 6th Annual Nicollet Night Out, a chance for the community to come together and unite. The Department of Natural Resources will be there. Other activities include make and take bird houses, a bounce house, the fire department and Gold Cross. This has been a very successful event over the years for the chamber and the entire community.

St. James Jamie Scheffer, St. James EDA

DODA U.S.A. broke ground in the St. James Industrial Park. DODA’s expansion includes a new 31,000 square foot building and plans for 5 new jobs within several years. DODA specializes in organic waste treatment manufacturing. The city of St. James has been awarded three grants over the past couple of months: a DNR Reforestation Grant, SMIF’s Community Growth Initiative, and the ArtPlace America Community Development Investment (CDI) grant through SWMHP.

St. James Jennie Firchau, St. James CVB and Chamber

Welcome “Penner Sales” to the St. James Chamber of Commerce! Head to St. James for the Watonwan County Fair July 14th through July 17th for rides, food, animals, a tractor pull and more. The Watonwan County Relay for Life will be held July 22nd at the Watonwan County Fairground. The activities start at 5:30 pm and continue throughout the night. Mark August 4th on your calendars for the St. James Community Block Party in Memorial Park. There will be music, food and fun starting at 5:30 pm at the north end of the park.

Strategic Partnership Series SPONSORED BY: Connect Business Magazine, Radio Mankato and Minnesota State Mankato are partnering to promote southern Minnesota partnerships between businesses and organizations with MSU students and faculty. The goal is to highlight various industries to show the breadth of businesses in the region and how higher education is helping advance them.

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Promoting strategic partnerships in Southern Minnesota JULY/AUGUST 2016

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By Carlienne A. Frisch Photo by Kris Kathmann

Small, sustainable and successful farm produces healthy animals, chemical-free food and a fulfilling lifestyle. In this era of technological and scientific advancements in farming practices, we’ve found one farm nestled in the rolling hills near Elysian, that is thriving by simply getting back to the basics. Bruce and Beth Meyer long ago embraced what is now a growing trend toward sustainable agriculture. Farming that is based on an understanding of ecosystem services, the relationship between organisms and their environment. Sustainable agriculture utilizes an integrated system of plant and animal production practices that will last over the long term, making the most efficient use of non-renewable resources. The Meyer Beefalo and Bison Hybrid Farm, about 15 miles from Mankato’s northeast edge, has been in business for 30 years. It serves a savvy niche market, yet the farm enterprise is reminiscent of the mid-20th century, or perhaps an even earlier agricultural era. To make the journey to this chemical-free, hormone-free, non-GMO farm, where the animals respond to their names, a visitor drives north on Le Sueur County Road 13 and travels down a couple of gravel roads before turning into the Meyers’ farm driveway. A black and white sign indicates the visitor has reached the destination. This is where the animals live, thrive and reproduce. The Meyers specialize in raising not only pasture-grazed beefalo and bison hybrids, but also heritage breed Red Wattle hogs, Katahdin Hair sheep and lambs, free-range heritage breed turkeys, a few geese sold for holiday roasting, 200 meat chickens, and 30 laying hens. The income from the Meyers’ enterprise permits them to fulfill a dream--to be full-time farmers, with no need to work off the farm. Beth Meyer says, “It may sound like the 1950s, but we would even prefer it to be more like in the 1800s, simpler and healthier. In addition to pasture-raising the beefalo and bison hybrids, we pasture our hogs and sheep, as well as our poultry. We use no growth hormones or antibiotics with the animals and no chemicals on the land. We use our own composted manure, which is free of chemicals and antibiotics.” continued >

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Bruce and Beth Meyerâ&#x20AC;&#x2122;s rustic roadside farm store, just south of Lake Jefferson and German Lake.

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The commercial aspect of the enterprise, the Farm Store, has been open for a decade, located in a log cabin that Bruce Meyer built in the winter of 2005-06. In addition to being available in the store, the Meyers’ meat products are sold to customers throughout south-central Minnesota and the Twin Cities area. And they prefer to do business regionally to support the local economy. For instance, meat for the Farm Store is cut, wrapped and frozen at Geneva Meats, a USDA-approved meat processing facility in Geneva, Minn. All individual meat purchases are picked up at the Farm Store, but customers who purchase a half or quarter of an animal pick up their meat at George’s City Meats in Nicollet, which handles butchering for larger purchases.

And they prefer to do business regionally to support the local economy. For instance, meat for the Farm Store is cut, wrapped and frozen at Geneva Meats, a USDAapproved meat processing facility in Geneva, Minn. The crops include open pollinated corn, alfalfa-clover hay, field peas and a small grain mixture of oats and rye grass that mature at varying times, keeping the pigs in pasture for several months. The beefalo and bison hybrids are raised on pasture and are rotated through paddocks to prevent overgrazing. The Meyers are farming the 30 acres on which Meyer grew up, another 30 he purchased, and 50 rented acres. He says, “If we had to go out and buy the land, we’d need to have an off-farm job. There is a young woman who comes to help us out and to learn our farming practices. She would love to farm, but she cannot afford to buy a farm right now.” The Meyers envision that the success of their enterprise may result in others adopting or developing sustainable agricultural practices. Beth Meyer says, “We

Meyer Beefalo and Bison Hybrid Farm | Elysian

When Bruce Meyer began farming organically two decades ago, one reason was that he’d had a negative health reaction to farm chemicals. Another was his desire to restore the depleted soil to organic health and to offer customers meat that was naturally healthful. hope that people who try our meat will spread the word to their family and friends that there truly is affordable meat that is healthy for you. We also encourage people to learn about the plight of small farms across the country and to do whatever they can to keep them from disappearing by supporting their local farmers with their food dollars. We need more people to do what we’re doing. We need more small, diversified farmers to bring back the small rural community. We’ve lost too many small towns, and our food source will be in jeopardy if someone decides we don’t get fuel anymore. Our goal is to make sure that our back-to-basics, sustainable farming practices are not forgotten and to encourage others to try this way of farming. It’s an amazing lifestyle—not a career, not a job—a lifestyle.” These idyllic surroundings might be described as creamy frosting on the cake of sustainable agriculture, but it has not always been this way. When Bruce Meyer began farming organically two decades ago, one reason was that he’d had a negative health reaction to farm chemicals. Another was his desire to restore the depleted soil to organic health and to offer customers meat that was naturally healthful. “In 1986, I bought my first beefalo heifer,” he says. “My dad purchased a beefalo bull that he bred to dairy cows, Guernseys and Holsteins, just for meat.” From 1986 to 2003, Meyer increased the size of his herds and tended the cropland. To keep the farm going, he put his two-year education in small engine mechanics to use by having a shop on the farm in which he did small engine repairs. He sold meat by word of mouth. Then along came Beth, with a few ideas about product promotion and customer development.

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Cultivating A Lasting Relationship Bruce and Beth Meyer were married in May 2004 in the Black Hills of South Dakota. They met as a result of one of Meyer’s friends suggesting it was time for him to sign up for a match making service. Beth Meyer explains, “We met through Country Connection, which I had learned about through a PBS television program. At the time it was based on letter writing to a center in Nebraska, which forwarded the letters to the recipient. Men received ladies’ profiles and photos, and ladies received men’s in a monthly publication. Bruce wrote to me first, and I wrote back. I was living in Iowa City, Iowa, so I came here for our first date on November 15, 2003. Bruce took me to dinner at the Bear’s Den in Elysian.” When Beth Meyer enrolled in Country Connection, she was consciously seeking a rural lifestyle. She had found her work as an accountant more stressful than she preferred a career to be. Planning to make a change to a career in research, she earned undergraduate degrees in biology and psychology, and then enrolled in graduate school. After realizing that her new career choice would likely be even more stressful than accounting, she dropped out

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Meyer Beefalo and Bison Hybrid Farm | Elysian

of graduate school and began to consider what life path might provide her with personal satisfaction, along with a lower stress level. “Farming,” she said. “I thought, ‘farming isn’t stressful.’” Although some farm families might disagree with that idea, it has proven to be true for the Meyers. On evenings when the weather is pleasant, after the chores are done, the couple sits outdoors and watches the antics of some of their stock, like the twin lambs named Garrison and Keillor, born this spring to a ewe named Sara. A gander struts back and forth in a pen, while the goose sits on a nest of eggs in a small building. The bison hybrids, beefalo, three milk cows, the sheep and the pigs graze in their individual pastures, secure within moveable paddocks. For the Meyers’ own use, there are fruit trees, berry bushes, a grape arbor and a large vegetable garden. The Guernsey cows provide rich milk from which the Meyers make cheese, cottage cheese and ice cream with chocolate-cinnamon, their favorite. “We have three Guernsey cows, bred to a Guernsey bull, that are having calves early this summer,” Beth Meyer said. “We don’t need three cows and their calves, so we’ll sell them as breeding stock when they are 6-9 months old. We don’t take the calves away from the cows when they are born. After 2-3 weeks, we milk one of the cows in the morning and leave the calf to take the rest for the balance of the day. We also have milked some of the beefalo cows in the past. We have a list on our refrigerator that we call our Cow Hall of Fame. It has the name of each cow we have milked over the years. Each animal has a name, which goes to respecting the animal, and we don’t use ear tags here.”

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Personal Basics Tell a bit about your childhoods. Bruce: “I grew up right here, born in 1959, the year after my father bought this farm. We had a diversified dairy farm, with chickens, hogs and sheep. I have an older brother and a younger sister.” Beth: “I grew up a suburbanite in western New York State, with three brothers.” Favorite school classes? Bruce: Math and science. Beth: I disliked school, but after high school I got a degree in computer programming, with a minor in accounting, then Bachelor of Science degrees in biology and psychology. Here, Bruce taught me everything about farming, but I also read. What would you change, if you could? Bruce: “I wish I had started out farming the organic route instead of using the contemporary, prevalent chemical practices into the 1990s. Beth: “If I could have come to farming earlier, I would have. I absolutely love this lifestyle. I also wish we had met and married 10 years earlier and had children, but God brought us together at the time in our lives when He did.” Hobbies? Bruce: We don’t have much time for hobbies. Beth: In the winter we do a lot of reading, and I’m teaching myself to play the violin. What is your favorite aspect of farming? Bruce: Being outside and experiencing nature. Beth: The babies are, by far, my favorite part. Watching them be born, watching them grow and mature, experiencing each and every individual personality-they truly are amazing. What possession do you value most? Both: We don’t really view all of this as possessions. Everything we receive is from the Lord; it’s not ours. By His grace, He allows us to do this, and we do it the best we can. The land is His, and the animals are His. What intangible do you value most? Beth: Honesty in myself and others, and respect for people. It doesn’t matter what other people think of us as long as we adhere to what we know is right. Bruce: I’d go along with those statements. If not this, what would you be doing? Bruce: We will never retire. We’ll do this until we die. Beth: I will never, ever go back to corporate America. We have a good 20 years ahead. 50

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Meyer Beefalo and Bison Hybrid Farm

She explains, “We took part in farmers’ markets, where we made customer contacts. With the Farm Store’s success, we no longer take part. Bruce also had a list of customers for quarters and halves, so we began sending a newsletter, and now we have a longer email list. I also designed a website, and we’re listed in the Minnesota Grown Directory. But some of our customers are neighbors who live in the cottages on German and Jefferson lakes during the summer.” Word-of-mouth recommendations from satisfied customers continue to be part of the farm’s success story. Although the Meyers use the internet to promote their business, they consider themselves to be non-techies. (Their TV receives only two channels, one of them a public broadcasting station.) There are other benefits to living in harmony with the land. Although Beth Meyer worked as an accountant in Mankato for the first two years of her marriage, she made the final transition to the farm enterprise once the Farm Store opened. She laughs, “When I quit working, I donated all of my business clothes. We even wear casual clothes to church, a tiny rural church.” One might think that a day on the farm varies only by the season, but Beth Meyer will dispute that, “There isn’t a typical day. We can put together a list, and it can be out the window, depending on the weather or a situation with the animals. We don’t have a routine, other than feeding, watering and milking. We begin feeding and watering the animals at 8 a.m., checking them to make sure they are all doing well. We handle the occasional breech birth ourselves. The veterinarian is here only on rare occasions, such as when we sell stock out of state and need to get a permit and an ear tag for that.” In addition to taking care of the animals, there are always the odd jobs, such as repairing equipment and moving or repairing fences, as well as pulling thistles and picking rocks. Other duties change with a seasonal rhythm familiar to farmers since the dawn of time—spring planting, haying in the summer and fall harvest. “I do all the planting and harvesting myself,” Bruce Meyer says. “Most of the machinery is pretty old, bought from my

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Meyer Beefalo and Bison Hybrid Farm

dad when he retired, but I can fix it. We have more tractors than we need, but I do use three of them, as well as the seed planter, grain drill, corn planter, rotary hoe, hay mower and rake, the balers and the cultivator. I do the cultivating mechanically, rather than chemically. And we have an old combine from 1962 for small grain.” His wife adds, “The only thing we don’t have is a team of horses. We’ve talked about the benefits and drawbacks, and we don’t plan on it.” After 25 years of raising buffalo that were sold for meat, the Meyers made the decision to sell the buffalo herd in 2011. Beth Meyer explains: “We’ve experienced good increases in the number of people wanting to buy beefalo meat, so we decided to expand the beefalo herd and add some bison hybrids. Those are similar to beefalo, although the bison hybrid has a higher percentage of buffalo in it.” Bison and buffalo are essentially the same animal, according to Bruce Meyer.

His wife explains: “A bison hybrid is a cross between a bison and domestic cattle, resulting in an animal that is at least 37.6 percent bison. An animal is considered to be a beefalo if it is 17 to 37.5 percent bison. Genetically, beefalo are 3/8 buffalo and 5/8 beef cattle. “Bison hybrids have existed as far back as when settlers brought domestic cattle with them,” she continues. “With few of the cattle in fenced pastures, the cattle sometimes interbred with bison. More recently, some ranchers have purposely bred the two species in an attempt to produce a longer lived, winter-hardy breed with a heavy coat and strong maternal characteristics. The result includes both bison hybrids and beefalo, which are gentle and easy to handle. The cows calve easily and do well on grass, finishing to slaughter weight in 18-22 months. And with buffalo genetics, you get low cholesterol, low fat, high protein and great tasting meat.” The beefalo herd now numbers about

THE ESSENTIALS

Meyer Beefalo and Bison Hybrid Farm Address: 47742 241st Avenue Elysian Township Phone: (507) 931-1889 Web: meyerbuffalofarm.com

50, with new calves replacing the coming two-year-olds that are being butchered. There are always two generations of calves with the cows. Sustainable and stress-free living, well, almost. Bruce Meyer recalls the time they had to refund order deposits on Thanksgiving turkeys. “One year, the hawks killed our poults (young turkeys). The scarecrow didn’t do the job of scaring the hawks away.” Carlienne Frisch writes from Mankato.

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OPINION

“Our survival relies on the ability to reintegrate investing and philanthropy,” said Woody Tasch at the second annual Slow Money Minnesota gathering earlier this month. Southern Minnesota Initiative Foundation (SMIF) co-sponsored this meeting, organized by our partner, Renewing the Countryside. Tasch is the founder of Slow Money, an advocacy and investment group drawing from the slow food movement that is interested in bringing money back down to earth. At the Slow Money Minnesota meeting on May 3, Renewing the Countryside and SMIF announced a new fund: Grow a Farmer Fund. In its beginning stages, this will be a donation-based fund that will raise funds from individuals, restaurants, and others interested in supporting a stronger local foods economy in southern Minnesota. SMIF and its partners are aiming to raise $100,000 by September 1 to launch this fund. It will be used to give lower interest loans to farmers such as John Mesko, who shared how a $350 investment in a three-point hitch helped him move his hog farm business from “just getting by” to a profit generating enterprise. The lower interest loans will recycle into a revolving loan fund to be an “evergreen fund” that can help others down the road. Given SMIF’s 30-year history of small-

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scale, “seed” investments for a sustainable region and the Foundation’s shorterterm interest in supporting a local food economy, the principles of Slow Money align closely with our own philanthropic efforts. For example, Slow Money Principle Six quotes Paul Newman: “I just happen to think that in life we need to be a little like the farmer who puts back into the soil what he takes out.” Anytime I talk with a potential donor to the Foundation, whether an individual, business owner, or City/ County official, I remind them that for every dollar they put into the Foundation, Tim Penny an average of $10 is re-invested back into southern Minnesota to support children, businesses, and communities. The purpose and principles of Slow Money are gaining increased attention. The Grow a Farmer Fund is timely given the SEC’s recent approval of Title IV of Obama’s 2012 JOBS (Jumpstart Our Business Startups) Act. This provision allows unaccredited investors - essentially, ordinary citizens rather than only high-worth individuals - to invest a certain percentage of their own equity in start-up businesses. CNBC called this “the biggest change to hit start-up investing in years.” Grow a Farmer Fund, while not an equity fund, does allow anyone interested in supporting a stronger local foods system to contribute, whether by money or time. In southern Minnesota, we have a long

history of agriculture. Our 20-county region houses a diversity of farmers, from commodity crop growers to small-scale farmers sowing everything from hazelnuts to hops. While both are economically important to our region, operationally, they are economically quite different. Insurance, loans, input costs, and distribution are all handled in unique ways. The Grow a Farmer Fund is targeted at smaller-scale farmers trying innovative approaches that have a harder time accessing traditional funds, don’t qualify for subsidies, or lack typical collateral. The Grow a Farmer Fund is yet another outcome of the FEAST Local Foods Advisory Network, a group of many partners focused on supporting local foods makers, growers and producers in our region. The Feast! Local Foods Marketplace, held annually at the Mayo Civic Center, is another initiative of this network. Additionally, SMIF just announced a second Local Foods Peer council to provide small food businesses a chance to learn from each other to support their businesses. Farming continues to be an economic driver in southern Minnesota. As older farmers start to transition their farms to the next generation, the Grow a Farmer Fund is an innovative solution to allow a wider segment of those looking to care for the land an opportunity to plant roots and for a wider audience to support this mission. I welcome your comments and questions. You can reach me at timp@smifoundation. org or 507-455-3215. Tim Penny is President and CEO of Southern Minnesota Initiative Foundation (SMIF).

HOT STARTZ!

Very New or Re-formed Businesses or Professionals New To Our Reading Area

MANKATO

Old Town Escape

DANIEL DINSMORE PHOTOGRAPHY

A family gathering at a cabin up north led to the creation of one of Mankato’s newest tourist attractions, Old Town Escape. Three sisters, and two of their husbands, were visiting the Park Rapids area and visited an escape room located nearby. Michelle May recalls, “It was a really thrilling experience that we couldn’t stop talking about! We kept saying that we should make one, and all of us were sort of half-joking, but at some point we had to call each other’s bluff!” Opening in February, the five family members already have plans to open a second room by late summer in their current building on North Riverfront Drive in Mankato. The cast of characters that own and operate the place are Chris Larson, Colleen Depuydt, Kathleen May, Michelle May, and Russell Depuydt. They have two employees. Escape rooms are a form of immersive live-action entertainment in which you play a mental game in a physical space. You must use your observational and critical-thinking skills to explore the elements of the room and use them to solve the puzzles that will allow you to escape. The group admits the biggest challenge so far has been explaining the concept. The scene is an early 1970s Mankato Post Office. The postmaster has mysteriously vanished, leaving a series of cryptic puzzles behind. During your investigation, your team becomes locked in the back room. Solve the mystery to unlock the door in 60 minutes so the mail can be delivered on time.

“Our biggest surprise has been the variety of people who have come and had a blast. We weren’t sure of the demographics when we started. We thought it might be young professionals or college students, but we’ve had people of all ages and from all walks of life. Every group does well in different parts of the game and you never know who’s going to click with which puzzles. But most everyone comes out with a smile on their face and that’s really gratifying,” says May. To book online, go to oldtownescape.com. Appointments are necessary. No walk-ins. OLD TOWN ESCAPE Address: 403 N. Riverfront Drive Website: oldtownescape.com Facebook: Old Town Escape

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Selfies To Go Jen Wanderscheid has always been one to live in the moment and just enjoy things as they happen. Now she has a business that helps others do just that, and capture a few memories while they are at it. The Wanderscheid family started Selfies To Go in August 2015. Selfies To Go is a full-service photo booth rental that’s a combination of old school photo booth meets high-tech social media. “I came up with the name because the machine I use looks like a big smart phone and it’s like taking a selfie,” says Jen Wanderscheid, who has a marketing and photography background. She explains that it’s an open concept. Instead of a booth, you have a backdrop so it accommodates large groups. Once the photo is taken, you can instantly print your photo, text it to your phone right from the machine, or email it to yourself. In addition, Selfies To Go creates a custom picture frame for each event so each situation is unique. Just as the experience has been for Wanderscheid, “I am just enjoying all the amazing customers I’ve been able to work with in the last few months. We’ve done holiday parties, proms, corporate events, charity events, graduation parties, and weddings.” In fact, that’s where it all started, a wedding. It was a few years ago that she stepped inside a photo booth at her cousin Matt’s wedding. It was a great experience and a lot of fun, but a little voice always whispered, “You can do this, and add in your own special touches!” So when the opportunity arose to buy a Selfie Station, she took it and hasn’t looked back.

Selfies To Go serves an area that encompasses a 150-mile radius around Mankato. Wanderscheid says time management has been her biggest challenge. “Just like everyone else, I work a regular full-time job so I have to schedule all of my graphic design and rentals on nights and weekends.” Thankfully she has her family to help, her son Hunter and daughter Cassidy are actively involved in the business. Her son Conor and husband Rick also pitch in when needed. SELFIES TO GO Telephone: (507) 380-2475 Website: selfiestogo.com Facebook/Instagram: Selfies To Go Twitter: @Selfies To Go

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Very New or Re-formed Businesses or Professionals New To Our Reading Area

EAGLE LAKE

Bauer’s Specialty Sales

ART SIDNER

Following in his father’s footsteps, Jim Bauer and his wife Mary, have opened a lawn and garden small engine sales and service operation . Jim Bauer says, “Dad was a Toro dealer in town for about 30 years. When he passed away, I started taking care of the regular customers he had. I enjoyed it and decided when I retired I would do what he did, have a little shop out of my home.” And he’s done just that, he retired from ADM in March and now has a full-service shop at his home. He carries Country Clipper and Husqvarna equipment. Choosing those two lines was very intentional. Bauer explains, “Country Clipper is commercial grade equipment which is both maintenance and user friendly offering one-handed operation. It is manufactured in Iowa and distributed here locally at Kaye Corporation. So with any piece of Country Clipper equipment you buy here, your money is actually providing an income for people right here in our area. As for Husqvarna, it provides a full line of lawn and garden equipment all made in the U.S.A., one of the few remaining.” Regardless of brand, Bauer can make the repairs and get any parts needed. He provides a different buying experience than his big box counterparts as well. “It’s a low-pressure situation. The best thing is people are able to get their hands on the product. They can even drive it

around in the yard, ask questions and have someone explain it to them that not only sells the product but also services the product so I have an understanding on how it should function,“ Bauer says. Since retiring, he really hasn’t slowed down. Which Mary says is just the way he likes it. “He’s not the kind of guy that can just sit around in a rocking chair and just be retired. He needs to be busy, that’s when he’s happiest!” BAUER’S SPECIALTY SALES Address: 20403 607th Avenue Telephone: (507) 257-3884 Website: bauerspecialtysales.com

To be considered for one of three spots in the September Hot Startz!, email the editor at editor@connectbiz.com. Businesses considered must have started—or changed greatly in form—within one year of our publishing date. Professionals chosen must be new to our reading area.

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ASK A PROFESSIONAL

Colin Wittmer Ag Lender Wells Federal Bank Mankato

2016 represents another financially challenging year for grain farmers. Input expenses remain comparatively high with grain prices. As a result some operations will struggle to stay in the black. In these times it is important for both bankers and producers to know an operations breakeven production cost. Armed with this information, educated decisions can be made in regard to rent and grain marketing. In my experience, farmland rental rates have eased for some producers, but for others, not so much. No one likes to lose land but farmers need to be looking hard at the productivity of their rented acres.If a negotiated rate reduction cannot be achieved, the best choice might be to let it go. To avoid this, keeping a good line of communication between landlord and producer is essential. I encourage my customers to show their landlords what the cash flow of the farm looks like. If a good fertilizer plan has been implemented or other improvements have been made, it is important to share that information. In some cases the landlord is dependent on the rent for their livelihood

Staying In Control of Your Finances Navigating Through a Down Turn in the Grain Market and may want an upfront cash payment. Being open about cost of production can help make the negotiation of a rental rate as fair as possible. Another option to consider is a flexible lease. A base rental rate with predetermined bonus levels can help minimize risk to the producer and share higher levels of profitability with the landlord. I should note that landlords have a varying degree of comfort with flexible leases. A growing challenge in agriculture is that landowners are becoming farther removed from the industry itself. The farmer may be working with someone who has a very limited understanding or even no understanding of agriculture. If this is the case, I encourage farmers to share their experience of production with the landowner as often as possible. Offer to have them ride

along in the combine or in the planting tractor. If this is not possible, share a few photos or videos of harvest. In todayâ&#x20AC;&#x2122;s world the cell phone can do many things-use it to document the experience. While tillage, planting, spraying and harvesting may be routine to farmers, the outsider may not fully comprehend the farming process. I see this as an opportunity to build a relationship between the two parties. A marketing plan is a must for the farm operation. During the past few years producers may have been lucky enough to get by without one. As margins diminish though, a plan must be in place. Realistically, this year some operations may not hit their break-even prices. Knowing your cost of production will, at a minimum, give you the knowledge of the financial

A producer who has a good handle on their financial health, a strong relationship with their landlords and a grain marketing plan, will be better positioned to weather hard times.