MN Valley Business May Issue by Free Press Media

The Definitive Business Journal for the Greater Minnesota River Valley

Alexa Kruger tries on a dress at Valerie’s Bridal. Kruger is getting married early next year. Photo by Pat Christman

Here comes the bride Busy season begins for wedding businesses

May 2019

Also in this issue • MANKATO PET CREMATION • NICOLLET BIKE AND SKI • ART-THEMED GET-TOGETHERS

The Free Press MEDIA

We love what we do,

WE WANT YOU TO LOVE WHERE YOU LIVE.

FEATURED LUXE LISTINGS

222 WYNNWOOD CIRCLE, MANKATO MLS# 7014398 $999,000

228 WOODHILL COURT, MANKATO MLS# 7017445 $799,900

128 SIENNA CIRCLE, MANKATO MLS# 7018330 $724,900

208 OAK MARSH DRIVE, MANKATO MLS# 7019750 $539,000

38326 HONEYSUCKLE LN, NORTH MANKATO

160 FAIRWAY DRIVE, MANKATO MLS# 7020246 $489,900

320 WOODHAVEN CIRCLE, MANKATO MLS# 7020130 $479,000

19560 586TH LANE, MANKATO MLS# 7016836 $439,900

409 NORMANDY CT, NORTH MANKATO MLS# 7019844 $399,000

MLS# 7018939

$514,900

300 INVERNESS DRIVE, MANKATO MLS# 7019935 $384,900

22 SNOWBIRD TRAIL, NORTH MANKATO MLS# 7019401 $349,900

OR VISIT OUR WEBSITE:

WWW.JBEALHOMES.COM

GRAIF BUILDING | 507.385.1313 | VISIT WWW.JBEALHOMES.COM TO VIEW ALL CURRENT LISTINGS!

PAID ADVERTISEMENT

Protecting Confidential Information

innesota law provides for the protection of certain information that an individual or business has created or acquired and is considered to be a “trade secret” under the Minnesota Uniform Trade Secrets Act (“MUTSA”). Trade secret information can include a formula, pattern, compilation, program, device, method, technique, or process. However, in order to qualify as a trade secret, the information (1) must not be generally known or readily ascertainable by other persons; (2) must derive independent economic value from its secrecy; and (3) must be subject to reasonable efforts to maintain its secrecy. Much of the litigation involving the application of MUTSA centers on the question of whether the information at issue actually qualifies as a trade secret. Perhaps the most litigated aspect of whether information constitutes a trade secret

By Dean Zimmerli is whether the information has been subject to reasonable efforts to maintain its secrecy. To meet this requirement, the party claiming a trade secret must establish that it took reasonable precautions to protect the confidentiality of the information. Reasonable precautions may include instructing employees, both orally and through employee policy manuals, that information which the employer deems to constitute trade secrets is to be kept confidential; requiring employees to sign confidentiality/non-disclosure agreements in which the employees acknowledge an understanding of the confidential nature of the information and agree not to disclose it other than as may be specifically allowed or directed by the employer; and undertaking efforts to physically secure the information (electronic data should be password protected or otherwise secured, and physical documents should be kept in locked areas).

It is important to keep in mind that even if information does not technically qualify as a trade secret under MUTSA, it can still be subject to protection from disclosure or use by others. For example, a contractual confidentiality/nondisclosure agreement, if properly drafted, can be used to protect such information. If your business has, or intends to, acquire or develop information which might be considered a “trade secret” or which otherwise could be used advantageously by a competitor, it is important to keep the requirements of MUTSA in mind, as well as contractual or other approaches which can be taken to protect the information from improper use or disclosure.

MN Valley Business • MAY 2019 • 1

Your one-stop shop for all your printing needs.

Sweet!

Not Where You Thought You’d Be? Have your finances seen better days? It’s not just you. For many people, the economy has changed the way we think about money – especially redefining the difference between “wants” and “needs.” Get a complimentary financial check-up through Primerica’s Financial Needs Analysis. It’s a 30 minute snapshot of your financial future … and the first step to doing something to improve it. So, you’re not where you thought you’d be. Here’s your chance to do something about it. Call your Primerica rep today to get started. Gerri Mae Meyer • 114 E Walnut St Mankato MN • 507-251-3481 or 507-720-6444

We believe all people should live in a safe, sustainable, and

BEAUTIFUL COMMUNITY.

Bolton-Menk.com

Corporate Graphics 1750 Northway Drive North Mankato, MN 56003

800-729-7575 www.corpgraph.com

F E A T U R E S May 2019 • Volume 11, Issue 8

As spring and summer unfold businesses that cater to wedding couples are in full gear providing dresses, photography services, venues and decorations for the special day.

Businesses that host arts and crafts get-togethers are growing in popularity in the area, creating a non-judgmental place for people to paint, craft and socialize.

Wendy June has started Mankato Pet Cremation to provide a service that was previously unavailable in the Mankato area for owners who’ve lost a beloved pet.

Jenna and Justin Rinehart and Jon Anderson have known each other all their lives and now have merged their Flying Penguin and Nicollet Bike and Ski Shop.

MN Valley Business • MAY 2019 • 3

■

MAY 2019 • VOLUME 11, ISSUE 8

By Joe Spear

PUBLISHER Steve Jameson EXECUTIVE EDITOR Joe Spear ASSOCIATE EDITOR Tim Krohn CONTRIBUTING Tim Krohn WRITERS Kent Thiesse Scot Zellmer Dan Linehan Dan Greenwood PHOTOGRAPHERS Pat Christman Jackson Forderer COVER PHOTO Pat Christman PAGE DESIGNER Christina Sankey ADVERTISING Danny Creel Sales Joan Streit Jordan Greer-Friesz Josh Zimmerman Marianne Carlson Theresa Haefner ADVERTISING Barb Wass ASSISTANT ADVERTISING Sue Hammar DESIGNERS Christina Sankey CIRCULATION Justin Niles DIRECTOR For editorial inquiries, call Tim Krohn at 507-344-6383. For advertising, call 344-6364, or e-mail advertising@mankatofreepress.com. MN Valley Business is published by The Free Press Media monthly at 418 South 2nd Street Mankato MN 56001.

■ Local Business memos/ Company news.....................................5 ■ Business Commentary.........................7 ■ Business and Industry trends..........22 ■ Retail trends.....................................23 ■ Agriculture Outlook..........................24 ■ Agribusiness trends..........................25 ■ Construction, real estate trends.....26 ■ Gas trends........................................27 ■ Stocks...............................................27 ■ Minnesota Business updates............28 ■ Job trends.........................................28 ■ Schmidt Foundation.........................30 ■ Greater Mankato Growth..................32 ■ Greater Mankato Growth Member Activities ............................34

From the editor

Local economy dependent on “all of the above”

he Mankato region has always had mix of industry that has helped provide “soft landings” for the local economy when the national or state economy turns sour. But digging a little deeper shows that while we are diversified, the region also has pockets of industry economic “risk” as some counties skew more toward agriculture and manufacturing. Faribault, Watonwan and Sibley counties are considered “farming dependent counties,” according to the U.S. Economic Research Service using data from 2010 to 2012 in a report released in 2017. Counties considered farmingdependent derive 25 percent of labor income and proprietors’ income from farming or 16 percent of the jobs are in farming. That has implications, as pointed out in last month’s column, for the Mankato area. Declines in farm income, among other factors, appear to create a kind of drag on Mankato retail trade. But equally as interesting, Waseca, Nicollet and Le Sueur counties are considered manufacturing-dependent counties. Counties considered manufacturing dependent have 23 percent of labor and proprietors’ income from manufacturing or 16 percent of the jobs are in manufacturing. Blue Earth, Brown and Martin counties are considered “nonspecialized” counties, according to the report. They don’t meet any of the criteria for a specialized farming, manufacturing, mining or government dependent county. All of this is fairly good news. We’ve long known agriculture is strong in parts of the region, but manufacturing almost has as much weight in three other counties.

4 • MAY 2019 • MN Valley Business

Of course, the ideal would that farming and manufacturing do well at the same time, or that one does above average when the other is doing below average. That appears to be the case recently. Manufacturing has been booming in the Mankato/North Mankatao MSA that includes Blue Earth and Nicollet counties while farm prices and income have been declining. A recent jobs report showed that year over year through November 2018, manufacturing jobs were up 5 percent or by about 500 jobs. While manufacturing did well in Blue Earth and Nicollet counties, there was a decline in manufacturing jobs in manufacturing-dependent Waseca and Le Sueur counties from 2017 to 2018. The decline of 400 jobs in Waseca County was likely related to the closing of Quad Graphics plant, formerly Brown Printing, that employed 400 people. So the 500 manufacturing job gain in Blue Earth County evened out the regional manufacturing employment to about flat. It looks like there was about a 100 manufacturing job loss in each Le Sueur and Sibley counties during that period as well. But there’s also a little cloud on the manufacturing horizon. More recent total job numbers for the Mankato/North Mankato MSA were flat in February for the first time since July 2010, though manufacturing jobs were still up 1 percent. On the national front, the third and most accurate estimate for GDP came out in March and showed 2018 GDP growth of 2.9 percent, above the 2.2 percent of 2017, but not as robust as Trump predictions that were in the 3.5 percent to 4 percent range. Minnesota’s budget surplus went down $500 million due to the

economy. The Chinese retaliatory tariffs on soybeans are still in place and soybean prices remain about 20 percent below pre-tariff levels. On the positive side, the minutes from the Federal Reserve’s March meeting had a majority of the Fed governors agreeing that a slowing economy would be reason enough to keep the Fed from raising interest rates again this year. The Fed raised the interest rate four times in 2018 to end the year at the 2.25 to 2.5 interest rate level. President Donald Trump and his economic advisors are now urging the Fed to cut rates again, and Trump is contemplating appointing allies like Herman Cain and conser vative commentator Stephen Moore to the Fed to carry out his wishes for lower interest rates. It’s a bit unprecedented to be that blatant about such political appointments to what is supposed to be an independent Fed. Moore has advocated for Fed Chairman Jerome Powell to be fired due to agreeing to interest rate hikes. He said he wrote those comments when he was angry, so stay tuned. Lower interest rates could alleviate some of the financing problems farmers are having going into planting season. They can only live on equity of the land for so long and many have faced several years of low or no income. Minnesota Soybean Association President Mike Petefish told Minnesota Public Radio news in April that the family is living off his wife’s income from her offthe-farm job and he has considered getting out of farming. Lower interest rates could help homebuyers and homebuilders as well. So, overall, the local economy looks like it’s headed for a mediocre year but our economic mix will serve as a safety net for any national or state downturns. Now we just need to get rid of those tariffs.

Local Business People/Company News ■

Timpte honors employees

Timpte honored two Mankato employees with 2018 Tom Gamel Innovation Awards. The awards recognize outstanding and innovative performance amongst. These awards are named for Tom Gamel who was with Timpte for 50 years. Each recipient was nominated by a fellow employee or group of employees and received a cash award and a plaque. Oleksandr “Alex” Mazuryk, a technician in the Mankato branch, developed a tool that utilizes a remote control that will trigger air to the brake system. This will allow the technicians to be under or behind the trailer to observe the moving parts of the brake system, which allows one person to accomplish the task. Justin More, a service writer in Mankato, was honored for working with a large excavating

Heating & Cooling

company that was looking for a solution to cover a shipping container. ■■■

Nelson joins Primrose

Primrose Retirement Community of Mankato hired Stephannie Nelson as their new director of nursing. She will oversee the care of residents and, in conjunction with executive director Lori Pietsch, manage the nursing staff. She will also ensure compliance with all necessary regulations. Primrose Retirement Community of Mankato, located at 1360 Adams Street, consists of 34 independent living apartments and 23 assisted-living apartments.

Building Automation

Security

TOTAL

BUILDING CONTROL SOLUTIONS

Exceeding expectations & gaining trust through exceptional value and performance!

Partners of SCHNEIDER ELECTRIC® Joe Spear is executive editor of Minnesota Valley Business. Contact him at jspear@mankatofreepress.com or 344-6382. Follow on Twitter @jfspear.

Mankato: 507-345-4828 | Rochester: 507-289-4874

www.paape.com

MN Valley Business • MAY 2019 • 5

St. James hotel honored

The St. James Super 8 by Wyndham was awarded the annual “Best of Super 8” which recognizes the brand’s top performing hotels and their staffs. Angela Rathman is the general manager. ■■■

Kall named to Leaders Club

Wells Fargo Home Mortgage named Kris Kall, home mortgage consultant, to its 2019 Leaders Club for the seventh consecutive year. This recognition is based on exceeding sales in 2018 and for providing outstanding customer service. Kall has been with Wells Fargo Home Mortgage for 16 years and has been in the financial services industry for 30 years. ■■■

Williams joins True

True Real Estate announced Jason Williams has joined True Real Estate as the newest real estate agent. Williams focuses on new construction and has grown up in the building industry. Currently, Williams is focusing his efforts in the Reser ve development in North Mankato ■■■

Dr. Brower honored

The Minnesota Academy of Family Physicians selected Dr. Ryan Brower as the 2019 Family Medicine Resident of the Year. This award is presented annually to a third-year resident for outstanding contributions to family medicine through community involvement, leadership and educational activities. Brower, chief resident at the University of Minnesota Mankato Family Medicine Residency, has been actively involved in nutrition education and food advocacy, teaching patients, colleagues and community members that food is medicine and proper nutrition can both treat and prevent disease. Brower is currently an active member of Roots, Boots and

Shoots, a community food network that seeks to identify and equitably solve issues within the Mankato/North Mankato food system. ■■■

Tibodeau joins Mankato Clinic

Abby Tibodeau has joined the Mankato Clinic diabetes and nutrition education center at Main Street. She earned her bachelor of science degree in food and nutrition from Minnesota State University. She completed a dietetic internship at the University of Delaware, Newark. Most recently she worked as a renal dietitian at DaVita Kidney Care in Mankato. ■■■

O’Keefe joins Kohort

Kohort Energy, an energy efficiency equipment distributor and consulting firm based in Mankato, has hired Philip J. O’Keefe as director of engineering. O’Keefe has extensive mechanical and electrical engineering experience, including 14 years as a project manager with electric utility Commonweath Edison. He has more than 30 years of experience and has provided expert witness ser vices and litigation support to attorneys and insurance professionals across the country. ■■■

Fredrikson opens law office

Fredrikson & Byron law firm has opened a new office in Mankato staffed by longtime Mankato attorneys Jessica Buchert, Michael Jacobs, David Naples and Randy Zellmer. “All bring outstanding reputations representing private and public companies and family businesses in a wide variety of industries, including manufacturing, agribusiness, financial services and energy industries,” Melodie Rose, chair of Fredrikson & Byron’s corporate division said in a statement. Buchert works with business owners, investors and lenders

6 • MAY 2019 • MN Valley Business

throughout the Midwest and the nation. Jacobs advises star t-up companies, closely held businesses, larger private and publicly traded companies with business, transactional, financing and commercial real estate matters. Naples advises entrepreneurs, families and multi-generational businesses on wealth, business and succession planning. Zellmer negotiates transactions and resolves disputes involving real estate, trusts, estates and commercial matters. His practice focuses on commercial real estate, estate planning, probate and general business matters. Fredrikson & Byron is a 275-attorney law firm based in Minneapolis, with offices in Bismarck, Des Moines, Fargo, St. Paul, Saltillo, Mexico, and Shanghai, China. ■■■

Two join Ophthalmology Associates

Ophthalmology Associates added two ophthalmologists. Dr. Justin Kuiper will begin seeing patients on Aug. 5 and Dr. Nathan Carpenter will begin seeing patients on Aug. 19. Carpenter will be the area’s only pediatric ophthalmologist that provides care for children of all ages. Kuiper grew up in Northwest Iowa and attended Simpson College in Indianola, Iowa, before earning his medical degree at the University of Iowa. Carpenter was born and raised in North Dakota. He earned his medical degree from the University of North Dakota in 2014 before completing a year internship at Sanford Health in Fargo.

■

Business Commentary

By Scot Zellmer

On Being a Successful Business in an Everchanging World

“W

hat is a trend? According to Merriammade by LGBTQ community members to see that by Webster online it is “the general heeding the voices of everyone, Mankato as a whole movement over time of a statistically becomes more successful and welcoming place to detectable change or a prevailing tendency or work and live. inclination”. This past June other voices were heard, and Being successful in business requires an awareness members of the City Council realized that a change of “prevailing tendencies” that are rooted in “detectable needed to be made. That change was a City Council change.” resolution recognizing the second Monday of October As everyone knows, trends related to business can as Indigenous People’s Day. encompass such things as changing products, evolving This change is important for two distinct reasons. services, and best practices of customer recruitment First, as a nation we rely on historical narratives to and retention. However, since the success of each inform us and this translates into the values we individual business is dependent embody. The narrative of Columbus upon the success of the community being a great explorer, having at large, it is also critical to be aware “discovered” the North American (According to Greater of societal trends. continent and bringing civilization to Mankato Growth’s own the western hemisphere is demonstrably As reported recently in two business publications, several false. An internet search (https://www. statistics, by 2020 the prevailing societal tendencies are zinnedproject.org/materials/ evident in the Mankato area. Mankato area will need rethinking-columbus/ ) will quickly According to market data reported reveal accurate information and provide on the City Center website, motivation to reconsider this holiday. 3,000 more workers millennials are a burgeoning market Second, to celebrate the resilience of to replace retiring segment and they are attracted to Indigenous Peoples, along with the bold and successful brand massive cultural, spiritual, governmental employees and to identification. and educative contributions they have Additionally, as reported in Twin rendered to American society, is a fill new jobs!) Cities Business Magazine, the nonnecessity in a city that truly wants to white population in the Mankato “Lead the Way.” area will increase by 117% in the next 11 years. These So, what can organizations and businesses in factors will result in a younger and more diverse Mankato do to embrace this change? populace seeking out those businesses who will satisfy Seek out resources and opportunities to educate their needs, as well as companies who can provide yourself and your employees on the reality of dynamic and satisfying employment opportunities. Columbus and the enormous historical and (According to Greater Mankato Growth’s own contemporary issues caused by his actions and the statistics, by 2020 the Mankato area will need 3,000 misguided celebration in his name. more workers to replace retiring employees and to fill Make a concerted effort to understand the histories new jobs!) and cultures of Indigenous Peoples, learn who they What are those needs? For millennials, they are are both historically (it’s different than what you see often marked by progressive business plans that in the movies!) and contemporarily, and on every translate into a wide range of inclusive and affirming second Monday of October commemorate Indigenous business practices. For members of minority groups, People’s Day.” it is acceptance of cultural differences and honest For any business or organization interested in efforts by front-line employees and management to learning more about how you can recognize and gain and possess cultural competencies. Cultural celebrate Indigenous Peoples Day, you can contact competency is often complex and starts by having Greater Mankato Growth and we will be happy to get distinct knowledge of the varied needs of diverse you connected with additional resources. consumers. It is then performed through actions that create an atmosphere of welcome and inclusivity. Scot Zellmer is a graduate teaching assistant at Businesses and organizations in Mankato already Minnesota State University. He is one of the organizers have a history of adopting new competencies in light that worked on behalf of adoption and recognition by of societal changes. We need only look at the gains the City of Mankato of Indigenous Peoples Day.

MN Valley Business • MAY 2019 • 7

A wedding couple is awash in color in this photo taken by Malwitz Photography, operated by Jason and Amy Malwitz.

The special day Businesses cater to brides and grooms

By Tim Krohn | Photos by Pat Christman

hose in the wedding business say one thing is integral to success: building a good rapport with the bride and groom to be. Jason and Amy Malwitz of Malwitz Photography often start building that relationship in an “engagement session” where portraits of the couple are taken, with the photos often used on savethe-date cards or to be displayed on their wedding website. “We always encourage them, when it can be done, to do engagement sessions,” Amy said. “It’s such a great relationship builder. We’ve seen a huge benefit in spending time with them when it’s more relaxed than on the wedding day.” Katie Hayes of Parties & Weddings Plus said they make sure they spend plenty of time when a bride comes in for the initial consultation.

“The relationship with the bride is key. We do a free consultation, and hour or more, to learn what they want and what they like. We give them what will fit in their budget and the look they like.” Valerie Pearson of Valerie’s Bridal said they spend plenty of time with the bride when she comes in looking for a dress. “Usually mom or mom and grandma or a sister comes along, too. It’s a lot of fun.” Courtney Malone at Chankaska Creek Ranch & Winery is often one of the first people a couple meets with as they start planning their wedding. The winery, near Kasota, offers a variety of outdoor and now indoor wedding venue options. “We have 2020 and 2021 dates open. We have a few open for 2019,” Malone said of their schedule, which often fills up far in advance.

Cover Story

8 • MAY 2019 • MN Valley Business

“We always encourage them, when it can be done, to do engagement sessions,” Amy said. “It’s such a great relationship builder. We’ve seen a huge benefit in spending time with them when it’s more relaxed than on the wedding day.” Capturing the moment

Amy Malwitz was long interested in photography while Jason came into it later. “I was into photography first, but Jason became more passionate about it than me.” Twelve years ago they started doing portraits of children and families and a couple of years later weddings. They keep up with the different style trends but often go for “timeless images,” she said. “There are certain trends now where they pull the color out of images but we don’t go that way. We want them to look true to life but something that won’t look dated 20 or 30 years from now. “We really love the outdoor images. But there’s a lot who want the at-the-church shots, too. There’s something for ever y personality. It’s fun.” Jason said he really got hooked on photography with the advent of digital photography. “I remember being frustrated with all the film she went through. Then we got a DSLR camera and I caught the bug. I studied anything I could get my hands on and it became a passion quickly.” He said weddings are the bulk of their business with their busy season from spring to November. “It’s a fun business, an exciting time to be in the business.”

Above: Jason and Amy Malwitz started their photography business 12 years ago. Photo courtesy of Malwitz Photography. Below: Some of the cards available through Parties & Weddings Plus.

All things wedding

Hayes’ mother, Linda Warren, bought Parties & Weddings Plus in 1997 and they began building it up with a focus on weddings. “It was a 2,000-square-foot party store,” Hayes said. “Since 2003 we’ve expanded it to a

MN Valley Business • MAY 2019 • 9

WHERE YOUR POLICY COMES WITH AN AGENT

Your local expert. Insurance can be complicated. As your local independent agent, we’ll find you the right coverage at the right price.

Christina Meyer

Dave Paterson

Mankato | Amboy | Vernon Center | cimankato.com

10 • MAY 2019 • MN Valley Business

Parties & Weddings Plus carries a variety of decorations to outfit a room for a wedding.

“We have 2020 and 2021 dates open. We have a few open for 2019,” Malone said of their schedule, which often fills up far in advance.

Katie Hayes of Parties & Weddings Plus. 3,000-square-foot retail space and 10,000 square feet of rental inventory space filled floor to ceiling.” While she focuses on weddings, the business also carries party and paper supplies. “We have many facets to our business — retail party goods, balloons, chair covers, centerpieces, linen, ceiling drapings, fabric backdrops.” She said they do full service for those who want them to bring everything to a venue, set it up and then take it down when the wedding or event is over. Or they provide anything the DIY bride might want. Beyond the large inventory of rental items, including everything from table displays to photo booths, the shop has a wedding consignment section. “So brides bring in things they used and we sell it on consignment for DIY brides.” Weddings Plus has an in-house florist and a team of designers that work with brides. “When you hire us, you get a team behind you. We have a lot of

Katie Hayes has a large storeroom of supplies at Parties & Weddings Plus. people.” Hayes said they’re always adding to their inventory to keep up with trends. “I’ve been in the industry long enough that colors popular 10 years ago are back in style.” “Fresh greens, white florals, brassy gold, cone flower blue are all popular. A lot of brides are using navy and burgundy now,

those deep tones. Rustic is still popular because of all the barn venues, but that’s taking a bit of a turn with less burlap and more wood and rustic tones.” Hayes said brides usually come in with a host of photos — often from Pintrest — showing styles they like. “That’s very helpful. Visuals are so beneficial in this business.”

MN Valley Business • MAY 2019 • 11

Valerie Pearson of Valerie’s Bridal shows Alexa Kruger a dress. Chankaska Creek

The dress

Alexa Kruger trying on dresses at Valerie’s Bridal.

12 • MAY 2019 • MN Valley Business

Pearson opened Valerie’s Bridal 15 years ago, starting small and growing to a large operation that has shops in rural Mankato and New Ulm. She also has a prom store, Glitz Prom Shop, in the Belle Mar Mall in Mankato. “We draw from north Iowa and South Dakota. I just had a girl from Rogers, Minnesota, over the weekend. Word travels. We carry the No. 1 selling designer, Essense of Australia,” Pearson said. “Lace is still in. It’s amazing. It came in a few years ago and I thought it would run its course, but it’s still strong. We go to market and we buy dresses twice a year, so we stay up with the most current ideas and trends. Every time I go I think lace is going to be out, but no.” She said colors are in for wedding dresses. “We order hundreds of dresses a year and I’ve maybe ordered five white dresses in the last year or two. We see a lot of ivory over Champagne, ivory over moscato. Not a lot of real bold colors, though.” One thing she’s seen is the spending increasing. “I would say when we first started the average was $600 to $800 for a dress. Today it’s $1,200 to $1,400 in our area and $1,600 nationally.” Beyond outfitting the bride, Valerie’s has bridesmaids dresses, dresses for the mother of bride, tuxedos, flower girl dresses and

E S TAT E P L A N N I N G • A S S E T P R E S E RVAT I O N • P E R S O N A L • B U S I N E S S

ASSET PRESERVATION dresses for personal attendants. “A lot of them do everything with us all in one place.

The venue

There is a large and growing list of wedding venues in the region, from the opulent to the basic. Wineries, renovated barns, historic buildings, event centers and other settings cater to weddings. Chankaska Creek has hosted outdoor weddings and weddings inside large tents since they opened. Now they are able to host them inside their new event center. “Our fall is filling up pretty quick. Now that we can have weddings all year long I’m hoping we’ll be busy all year. We have a few booked in December and January, so that’s not bad for our first season,” Malone said. They host a few weddings during the week but most are on Fridays or Saturdays with a few on Sundays. Chankaska handles food for smaller grooms dinners, but if it’s more than 40 people, they have preferred caterers that clients can choose from. Absolute and Najwa catering provide services and they just added A’BriTin Catering out of Farmington. She said their weddings are split evenly between the event center and in the tent. “We offer outdoor ceremonies, too. Some want the ceremony outdoors and then use the event center after.” MV

You’re busy planning your joyous wedding day. Trust us to help you protect your family and your financial wellbeing by providing legal expertise in the areas of estate planning, wealth preservation, wills, trusts, and antenuptial agreements.

Mankato

507-345-1166

New Ulm

507-233-3900

blethenberens.com

237295-1001

One Firm + Endless Opportunities

ARCHITECTURE

PLANNING

ENGINEERING

ENVIRONMENTAL

MN Valley Business • MAY 2019 • 13

Ashley Rehder (second from left in turquoise) gives instructions to a group of St. Clair teachers during a craft night at Ruby Ranch Barn in rural Pemberton. Rehder said she gets a lot of her business by word of mouth, Facebook and Instagram.

A Crafty Opportunity

Businesses tap art’s potential to bring us together By Dan Linehan Photos by Jackson Forderer

rafts aren’t really Sara Will’s thing. She’s more of a follow the instructions type of thinker. But she wants to learn, so when she saw an opportunity to give it a shot, she jumped. The St. Clair woman joined her mother and sister-in-law to make their own fun signs at Ruby Ranch, a small business in rural Pemberton. “It’s a fun way to connect with people and do something crafty and not have a mess in your own home,” Will says. Seeing examples of what other people had done helped stimulate her own imagination.

Ruby Ranch is one of several ventures in the Mankato area that have found a business opportunity in hosting artsthemed get-togethers. They include Design & Wine, a Belgrade Avenue do-it-yourself workshop; ARTifact, a paint-your-own pottery studio on Riverfront Drive; and Mankato Makerspace, a 3rd Avenue workspace and education hub. The hosts say they’ve created nonjudgmental places for people to paint, craft and enjoy the company of friends, family or colleagues. Social media, both in terms of targeted

Cover Spotlight

14 • MAY 2019 • MN Valley Business

keep it fresh for repeat customers? Again, the social aspect is key. Many people who visit in one setting — like for a birthday party or after-work event — may want to come back in another one. When mothers come in with coworkers, many say, “oh my gosh, my kids would love this,” and come back as a family, Dinsmore Green says. ARTifact has more than 200 Left: Marshmello the cat hangs out with some chickens on a hay bale trailer at Ruby Ranch Barn. types of pottery to choose from, Owner Ashley Rehder said they specialize in kid camps in the summer where they can interact too, opening up opportunities for with goats, ducks, chickens, bunnies and cats. Right: Ashley Rehder, owner of Ruby Ranch Barn, gift-giving. gives instructions to a group of St. Clair teachers as they made wooden signs saying “Welcome Ruby Ranch is expanding its to our Home.” offerings by opening a glassfusing studio this summer. The “People can see it doesn’t have advertising and spreading the process involves the fusing to be intimidating,” she said. “You word, has been a tight fit for these together of small pieces of glass don’t have to have any artistic social businesses. to create objects, including abilities at all.” Ruby Ranch, located off a quiet suncatchers. Customers also say it’s a great country road, is hard to stumble It’s a little bit more involved chance to meet other people, across, owner Ashley Rehder than painting; you need gloves, including couples and young says. goggles and glass pliers, so families, said Rehder, the Ruby “People will post and tag us and they’re limiting it to people ages Ranch owner. It’s also a chance to others will say, ‘Where is this 10 and up. take a break from the domestic place?’” she says. “It gets word of Growth is a special challenge routine. mouth spread so quickly.” when you’re limited to a single “It’s relaxing, a night to get Though these businesses workshop. Expansion is an option, away,” said Will, the St. Clair welcome individuals, they get but there are risks. woman, who in March joined a their vast majority of customers “We want to feel quaint and group of moms from her town to from groups who are often in it as cute, not corporatey,” Dinsmore paint pottery. much for the company as the art Green says. That said, they’ve And, yes, most of them are itself. Customers walk away with talked about adding locations in women. a finished product, but they’re southern Minnesota. “You never get two men meeting paying for something else. “There’s a lot of areas in together to make pottery or have “We definitely are aware of the Minnesota that don’t have a male wine club,” Ruby says, whole selling of an experience,” anything like us,” Ruby said. The though she adds that she’d love to says Kim Ruby, one of the coclosest such business is now in see more of this male bonding. owners of ARTifact, the pottery Edina, she said, opening up Just as customers have more painting studio. And you don’t opportunities to expand. fun in groups, attracting circles of have to be an artist. They’ve given thought to friends and work gatherings are expanding mediums, but there more profitable for these A Group Experience would be downsides to adding, businesses. It they were selling a People can come to these say, pottery throwing. It’s more of product, like a car, each new workshops and classes alone, but a time commitment, as you’d need customer is about equally as the vast majority of customers multiple classes, she says. profitable as the last. But they’re come in groups. That’s what the But making new products isn’t selling experiences, so each owners of ARTifact anticipated. really the point for a business additional customer is, aside from “One of the only demographics selling an experience. In other the cost of materials, mostly we hadn’t thought of is parents words, instead of asking profit. visiting their college-age themselves what people want to So the businesses tr y to children,” co-owner Emily own, they ask what customers incentivize customers to bring Dinsmore Green says. “That’s want to do and feel. groups. ARTifact offers a 15 been really cute to see, 19- and ARTifact recently added a date percent discount for groups of 10 20-year-olds hanging out with night that includes half off one of or more and offers to stay open their parents.” the two tickets. It doesn’t have to after hours. Ruby Ranch makes There’s no elitism among these be a romantic date, Ruby says, an event free for the organizer if artistic business owners. ARTifact perhaps getting a bit 10 or more people attend. gives examples of simple pottery autobiographical. designs, Dinsmore Green says. “You can have friend dates. Finding Ways to Grow You don’t have to get fancy; plenty That’s what happens when you Painting with a group of friends of people pick a bowl and paint it get old and you never see your is a novel experience the first one color inside and outside. Just friends,” she says, laughing. MV time. But how do these businesses say you’re a minimalist.

MN Valley Business • MAY 2019 • 15

Wendy June said she came up with the idea to start Mankato Pet Cremation as a business when she saw someone in another state with a similar business. “I thought that’s a smoking hot idea,” June said.

Rising from the Ashes Rural Mankato woman starts pet cremation business By Dan Linehan Photos by Jackson Forderer

fter spending more than 30 years as a chance to form a bond with pet owners and sign language interpreter, Wendy June the trust they place in her. of rural Mankato is making a change. “I see that person in their most raw A big change. moment,” she says. June has always loved “Every time I get a pickup animals, and counts I get a tear-filled story peacocks, hedgehogs, about the cutest thing sheep and goats among they remember.” MANKATO her former companions. Deb who lives PET CREMATION LLC in ruralMcKay, As to why she settled on Le Sueur County, Facebook pet cremation as an outlet searched for pet cremation 507-995-7120 for that passion, she can’t options after the March quite explain. death of her 14-year-old “I don’t know!” she says English springer spaniel, brightly. But she does believe her business, Maggie. Traditional options through a called Mankato Pet Cremation, LLC, can fill veterinarian might have taken weeks, and a void. There are no pet crematories in the McKay had made her dog a vow. Mankato area, she says, so grieving pet “My promise to the dog, which is irrational owners may otherwise wait two weeks before probably, is that I would not leave her during getting their pet’s remains back. this process,” McKay says. She wanted to June secured a county permit in December, wait in Mankato to pick up Maggie’s remains, installed a crematorium and has started but learned the process would take a day or looking for clients. She appreciates the two even at June’s business.

Feature

16 • MAY 2019 • MN Valley Business

Wendy June (left) shows Nicole Richards (right) and Shelly Wingen an urn for a pet at a Pheasants Forever event at the Kato Entertainment Center. June has started the business Mankato Pet Cremation out of her home and wants to serve the greater Mankato area. “Unfortunately, I was not able to keep my promise but I did my best and Wendy took very good care of her,” McKay says, choking up a bit. June plans to grow her new business slowly, and has continued to work as a sign language interpreter. Though she’s marketing her services to individual pet owners like McKay, most cremations happen through veterinary clinics. “I really do need their business to make it,” she says. June also sees other business opportunities in helping people through the end of their pet’s life. Because many dog and cat owners don’t like their pets’ last hours to be at a veterinary office, she wants to team up with a veterinarian to offer in-home pet euthanasia. And she’s touting herself as the “sendoff specialist,” meaning she’ll offer services and events to mark the life of a pet and offer closure. For example, she’s found a gun expert who can pack an animal’s ashes in a shotgun shell to fire off in salute. It could be an appropriate sendoff for a police or hunting dog, she says. June got started with her new business in July. Because of its unusual nature, she got plenty of questions, from both customers and local governments, but appears to have answered them all.

Burning Clean

A typical home furnace delivers about 100,000 British thermal units of heat an hour. The crematorium June purchased burns at about eight times that strength. It’s actually two burners: The lower one incinerates the pets while the upper one burns off the smoke and odor. “What comes off the stack is a shimmer,” she says. “It’s really very environmentally courteous to my neighbors.” June’s Blue Earth County permit prevents her from emitting thick smoke; it says she “may not emit gasses into the atmosphere that are greater than 20% opacity.”

June says the ashes are “just organic matter” and not hazardous, though the permit requires her to dispose of them in the landfill. She also wants to be able to answer a question that has occasionally embarrassed pet cremation services elsewhere: How do I know these ashes are my pet? June gives each customer a ticket with a number on it. That number also follows the animal through the cremation process, so when the owner collects the ashes they can match the numbers. Some pet owners don’t want the ashes back, and June charges slightly less for group cremations: $149 compared with $199 for private cremations. She charges less, $99, for small pets, like a hamster or Chihuahua. She can also cremate larger animals. Horses, for example, are traditionally buried, except for their head, heart and hooves. In Minnesota, many pets are cremated by the St. Paul-based Veterinary Hospitals Association, which has provided cremation services for vets around the state, including Mankato, for 34 years, says its executive director, Jeff Benson. It can take longer for the remains of Mankato-area pets to make it back to their owners, though Benson says the ashes are returned within a week or less. They have a digital system that tracks when pets have been collected and where they are in the cremation process. They don’t do private cremations, though they separate the animals in the crematoria so that the ashes they collect in a given place are almost entirely from the same animal. “For example, it’s position “A” in machine three, so we know exactly where they are at any given time,” Benson says. He says pet cremation has risen dramatically in recent years, as has the proportion of pet owners who want their ashes back. When he started about eight years ago, about 40 percent of pet owners wanted their ashes back; now it’s at about 60 percent to 65 percent. Benson says the demand might be driven by society’s changing view of pets. “We’re starting to look at pets as a member of the family, not just a dog or a cat,” he says. Even with her number-tagging system, June relies on quickly forming trusting bonds with customers. A handful of her early clients say it’s a strength of hers.

Saying Goodbye

When asked how to spell her name, Michelle Buettner of rural Milwaukee says “there’s hell in this Michelle.” Two “l”s, then. Buettner and her husband, Bob, got Tucker, when he was a six-week-old barn cat. He burrowed his way into their hearts, comforting Michelle through the death of her mother. Among the cat’s endearing habits was what they called the “Tucker plop.” He would sit on the arm of a chair and roll his 16-pound frame onto the chair. Then Tucker got sick. He stopped eating, and after six days they agreed it was time. Tucker hated car rides, so they hired an at-home pet euthanasia ser vice called Peaceful Passage. A veterinarian came to their house and euthanized Tucker on his favorite pad in front of the fireplace.

MN Valley Business • MAY 2019 • 17

“We wanted him in tender, loving hands the whole way through,” Michelle Buettner says. Her dad is a friend of June’s, so she drove Tucker’s remains to southern Minnesota to get cremated. They plan to sprinkle his ashes in the garden. For the Buettners, trust was essential in finding a person to cremate Tucker. “It’s a matter of trust and knowing that we’re going to get his ashes,” Bob Buettner says — “and only his ashes,” his wife chimes in. Bob continued: “We would never know either way, but we trust Wendy.” Of course, it helped that the Buettners already knew June. McKay, the Le Sueur County dog owner, didn’t know June when she called seeking a person to cremate Maggie. She had a lot of questions about how the details would work, but found June to be honest and forthright. “I was impressed with her openness,” McKay says. “The reason we used her is because she was honest, transparent and willing to answer any questions.” June says it may take her a year or so to hit her target of 90 cremations per month, and she’s continuing to work as a sign language interpreter. She’s already on guard about being overwhelmed and has hired on a friend and family member parttime. Any entrepreneur might worry about being stretched too thin, but she has other, unique, worries. As an animal lover, handling deceased pets won’t be easy. That’s why she’s not offering to make plaster of Paris paw prints, as some businesses do. She’ll already be exposed to enough sadness; no need to add more. “We call that vicarious trauma,” she says, referring to the pain of being exposed to the pain and sadness of trauma survivors. “I’m already ready for that.” MV

18 • MAY 2019 • MN Valley Business

Artfully crafted with a wide range of stone and wood visuals. Wonderfully waterproof thanks to Shaw’s LifeGuard Resilient core. Artfully crafted with a wide range of stone and wood visuals. Wonderfully waterproof thanks to Shaw’s LifeGuard Resilient core.

Got water?

Dealer Area

507.625.3089

Artfully1107 crafted with a wide Cross St. | North Mankato range of stone and wood visuals. Wonderfully waterproof thanks to Shaw’s LifeGuard Resilient core.

www.rickwaycarpet.net

RENOWNED AND RENEWED: RTJ TURNS 25

Acclaimed as one of the world's great golf destinations, Alabama's Robert Trent Jones Golf Trail invites you to celebrate its 25th year by offering fantastic deals. Unlimited golf packages are easy on your wallet. All of the original RTJ Golf Trail sites have been renovated and are ready for your arrival. Celebrate our silver anniversary while saving some silver yourself.

» Plan your visit to the RTJ Golf Trail by calling 1.800.949.4444 or visiting rtjgolf.com.

facebook.com/rtjgolf

twitter.com/rtjgolf «

MN Valley Business • MAY 2019 • 19

From left, Justin Rinehart, Jon Andersen and Jenna Rinehart at Nicollet Bike and Ski. Andersen, former owner of the Flying Penguin, said he is carrying on the family tradition of selling ski gear since the 1930’s in a sport he loves and added, “I can’t think of doing anything else but this.”

Common interests Owners of two bike shops longtime friends

By Dan Greenwood | Photos by Jackson Forderer

ome things come full circle. Jenna and Justin summer and skiing in the winter. About half of Flying Rinehart, the Mankato couple who bought Penguin’s inventory was ski-related, whereas Nicollet Nicollet Bike Shop nine years ago from the Bike Shop’s inventory focused almost exclusively on previous owners have been skiing biking. since a young age. Jon Andersen, “Being a bike shop, it’s a very the grandson of the original owners seasonal business,” Justin Rinehart of Mount Kato, who has led said. “It’s a challenge to get Mankato’s high school downhill ski NICOLLET BIKE AND through winters every year with teams for decades, was their coach business being so seasonal. So a lot SKI SHOP when they were kids. Now the three bike shops do offer some sort of 607 North Riverfront Drive, are in business together. alternative products in the Mankato Nicollet Bike Shop and Flying wintertime.” 507-388-9390 Penguin Outdoor Sports have Justin Rinehart said when he Nicolletbike.com merged into one entity called began cycling more as a young Nicollet Bike and Ski Shop, located teenager, he would ride his bike at 607 N. Riverfront Dr. in Mankato. The three have down to Flying Penguin Outdoor Sports and hang out maintained a connection over the years. at the store for an hour or two and learn from “We stayed in touch as friends,” said Andersen. “It’s Andersen. He says Andersen’s store became a spot the thing where they’ll be out at Mount Kato skiing or where like-minded people got together and built we’ll run into each other on the bike trail.” connections in the local cycling scene. At the center of the decision lies the seasonal nature In high school, Justin Rinehart got a job at Nicollet of Minnesota outdoor sports, with cycling in the Bike Shop, at the time in a rural area a few miles south

Profile

20 • MAY 2019 • MN Valley Business

Top left: A small section of Nicollet Bike and Ski is currently dedicated to ski gear, but will seasonally change in September and October when people get ready for ski season Top right: Brady Larson uses a vice to fix a brake pad for a bike at Nicollet Bike and Ski. Bottom right: Jenna Rinehart helps out Gary Winters at Nicollet Bike and Ski. The store officially changed its name on March 1 after merging with the Flying Penguin.

of the town of Nicollet. When the previous owners decided to retire, the Rineharts purchased the business from them. “This is the classic ‘start the bike shop in your garage and then it grows’ story, which is pretty common in the bike industry,” Justin Rinehart said. “So Gene and Margo (previous owners) still lived on site, but we knew we would need to move it at some point.” In 2011 they relocated to Mankato. At the time, Flying Penguin was on the corner of Madison Ave and Victory Drive, with Nicollet Bike Shop in Mankato’s Old Town neighborhood. The two businesses would recommend the other if they didn’t have something in stock that the other did, and both found their customers to be loyal to both shops. “We’ve had customers that liked both shops in the past and now they can just go to one space and not feel bad for patronizing one shop versus the other,” Jenna Rinehart said. “He (Andersen) is really engaged in the community and doing these great things, but as a oneman show you can only do so much. We can put our resources together and not have two separate buildings with rent and doing all the double-end tasks.” The Rineharts reached out to Andersen to see if he was interested in merging last summer. After some consideration, the idea seemed to make more and more sense to Andersen. “The first time I talked to Justin was off-the-cuff back at the end of the summer,” Andersen said. “But we got together in earnest to talk about it in November. It seemed like a really good fit.” The three spent the month of March moving all of

Andersen’s inventory from the Flying Penguin to its new home, now called Nicollet Bike and Ski Shop. With the arrival of spring, the store is focusing on bicycles, but Jenna Rinehart says customers will notice some big changes next fall when they place orders for ski accessories and equipment. “There isn’t anyone else in town that’s really doing ski stuff so we’re going to have some of the bigger ski brands in the shop here come fall to take care of the ski community,” Jenna Rinehart said. “We’re fortunate to have that ski area right in town that is unique to Mankato and a good ski shop is what the town needed, I think.” But Andersen said future plans also include expanding their bicycle options too, and a big part of that involves building the cycling community. “We have a bike club here,” Andersen said. “Cycling is a sport where there are so many different aspects for it. It’s a place people can come and talk about cycling, maybe meet some new friends and the same thing with the skiing.” Jenna Rinehart said that with both businesses devoted to community, they will have group rides nearly every day of the week, from slow-paced rides on paved trails, to intense rural rides on hilly gravel roads. “There’s something for everyone,” Jenna Rinehart said. Now that the two businesses have merged, Justin Rinehart said that ultimately, they believe that they are stronger together than they are apart. “This was a mutually beneficial decision for us all,” he said. MV

MN Valley Business • MAY 2019 • 21

Your key to hassle-free home ownership...

a mortgage from Community Bank

Business and Industry Trends ■

Energy Natural gas-fired capacity surpasses coal-fired

Mankato | Amboy | Eagle Lake | Vernon Center | cbfg.net

Tyler Kietzer Justin Giefer Andy Fischer 507-257-5126 507-385-4452 507-385-4492 NMLS #815771 NMLS #921638 NMLS #1402978

I’D LIKE TO PLAN FOR THE FUTURE You’ve tied the knot, and now it’s time to think about what’s next. Eide Bailly can answer questions about taxes, retirement planning and more to help you and your family feel confident in your financial future. 507.387.6031 | eidebailly.com

22 • MAY 2019 • MN Valley Business

The amount of generating capacity from natural gas-fired combined-cycle (NGCC) plants has grown steadily over time, and in 2018, surpassed coal-fired plants as the technology with the most electricity generating capacity in the United States. As of January 2019, U.S. generating capacity at NGCC power plants totaled 264 gigawatts, compared with 243 GW at coal-fired power plants. Total capacity for generating power in the United States across all types of natural gas-fired generating technologies surpassed coal as the primary capacity resource more than 15 years ago. However, different natural gas-fired generating technologies are used differently. Steam turbines (which can also be powered by oil or coal) combust fuel to generate steam, which is used in a steam turbine to generate electricity. Combinedcycle units heat up fuel and use the fuel-air mixture to spin gas turbines and generate electricity. The waste heat from the gas turbine is used to generate steam for a steam turbine that generates additional electricity. Natural gas-fired combustion and steam turbines are less efficient and more expensive to run, so they are typically used only during periods of peak electricity demand. Similarly, almost all coal plants (except integrated gasification units, which are rare) combust coal to generate steam, with little oppor tunity for ef ficiency improvements. As of the end of 2018, NGCC

power plants accounted for about half of all U.S. natural gas-fired generating capacity, but they provided almost 90% of total natural gas-fired generation.

Retail/Consumer Spending

2019 energy outlook

The federal Energy Information Administration has released its annual energy outlook report. Among the highlights: • The United States becomes a net energy exporter in 2020 and remains so throughout the projection period as a result of large increases in crude oil, natural gas, and natural gas plant liquids production coupled with slow growth in U.S. energy consumption. • Of the fossil fuels, natural gas and NGPLs have the highest production growth, and NGPLs account for almost one-third of cumulative U.S. liquids production during the projection period. • Natural gas prices remain comparatively low based on historical prices during the projection period, leading to increased use of this fuel across enduse sectors and increased liquefied natural gas exports. • The power sector experiences a notable shift in fuels used to generate electricity, driven in part by historically low natural gas prices. Increased natural gas-fired electricity generation; larger shares of intermittent renewables; and additional retirements of less economic coal and nuclear plants occur during the projection period. • Increasing energy efficiency across end-use sectors keeps U.S. energy consumption relatively flat, even as the U.S. economy continues to expand.

Electric use to fall

EIA expects the average U.S. residential customer will use an average of 1,026 kilowatthours (kWh) of electricity per month during the summer cooling season that runs from June through August, about 5% less than the same period last year. EIA uses the National Oceanic and Atmospheric Administration’s weather forecast, which indicates that temperatures will be cooler than last summer in all regions of the United States. The cooler forecast temperatures contribute to the lower expected electricity use.

Electric prices up

EIA forecasts that U.S. residential electricity prices will average 13.4 cents/kWh during the summer cooling season, about 2% higher than last summer. The higher forecast prices primarily reflect higher actual generation fuel costs from 2018 that affect retail rates with a time lag, as well as rising electric transmission and distribution costs.

Renewable fuels increase

EIA forecasts that all renewable fuels, including wind, solar, and hydroelectric generation, will produce 18% of U.S. electricity in 2019, and almost 20% in 2020. EIA expects that wind generation will surpass hydroelectric generation to become the leading source of renewable electricity in both years.

Vehicle Sales Mankato — Number of vehicles sold - 2018 - 2019

1,171 1,033

1500 1200 900 600 300 0

Source: Sales tax figures, City of Mankato Includes restaurants, bars, telecommunications and general merchandise store sales. Excludes most clothing, grocery store sales.

Sales tax collections Mankato (In thousands)

- 2018 - 2019

$516

600

$536

500 400 300 200 100 0

Source: Sales tax figures, City of Mankato

Lodging tax collections Mankato/North Mankato

- 2017 - 2018 $32,300 $45,188

70000 52500 35000 17500 0

Source: City of Mankato

Mankato food and beverage tax - 2018 - 2019 175000 140000

$63,900 $69,815

105000 70000 35000 0

Source: City of Mankato

C. Sankey

MN Valley Business • MAY 2019 • 23

■

Agricultural Outlook

By Kent Thiesse

2018 net farm income lowest in 23 years

he University of Minnesota recently reported that the median net farm income for Minnesota farmers in 2018 was only $26,055, which was the lowest in the past 23 years of analyzing farm business management records. The 2018 income level represented the fifth year in a row of sup-par net farm income levels in the State, occurring for the first time since the 1980’s. Farm operators across Southern Minnesota had 2018 median net farm incomes that were even lower, feeling the effect of reduced crop yields that resulted from excessive rainfall during the growing season. Farmers were also impacted by the reduced crop and livestock prices, resulting from U.S. trade wars with China, Mexico and Canada. The Farm Business Management (FBM) Summary for Southern and West Central Minnesota was recently released by the Farm Business Management Instructors. This summary includes an analysis of the farm business records from farm businesses of all types and sizes in Southern and Western Minnesota. This annual farm business summary is probably one of the “best gauges” of the profitability and financial health of farm businesses in the region on an annual basis. Following are some of the key points and data that were in the 2018 FBM Summary:

BACKGROUND DATA

• The “Net Farm Income” is the return to labor and management, after crop and livestock inventory adjustments, capital adjustments, depreciation, etc. have been accounted for. This is the amount that remains for family living, non-farm capital purchases, income tax payments, and for principal payments on farm real estate and term loans. • The “median” net farm income is the midpoint net farm income of all farm operations included in the FBM Summary, meaning that half of the farms have a higher net income and half are lower. • A total of 1,460 farms from throughout South Central, Southwest, Southeast, and West Central Minnesota were included in the 2018 FBM Summary. • The average farm size was 699 acres. The top 20 percent net income farms averaged 1,146 acres, while the bottom 20 percent net income farms were also above the average at 1,014 acres. • 53 percent of the farm operations were cash crop farms, 14 percent were single entity livestock operations, with the balance being various combinations of crop, livestock, and other enterprises.

24 • MAY 2019 • MN Valley Business

• 459 farms (31%) were under $250,000 in gross farm sales in 2018; 318 farms (22%) were between $250,000 and $500,000 in gross sales; 377 farms (26%) were between $500,000 and $1 million in gross sales; and 306 farms (21%) were above $1 million in gross sales. • In 2018, the average farm business received $27,445 in government program payments, which exceeded the median 2018 net farm income level of $20,655. In addition, the average farm operation received $15,728 in crop insurance payments to offset 2018 yield reductions. A majority of farm operations would have showed a significant net income loss in 2018 without the added income from the crop insurance and market facilitation program payments. • The average family living expense in 2018 was $58,828, which has declined in recent years, even with higher medical expenses and health insurance costs. The average non-farm income in 2018 was $41,383, which represents nearly half of total annual non-farm expenses by families. • In 2018, the average farm business spent $781,250 for farm business operating expenses, capital purchases, and family living expenses. Most of these dollars were spent in local communities across the region, helping support the area’s overall economy.

FARM FINANCIAL ANALYSIS

(Note --- Please refer to the attached Table for a 4-year (2015-2018) comparison of various average farm financial data, as well as average crop and livestock data. • The median net farm income for Southern and Western Minnesota in 2018 was $20,655, which compares to median net farm income levels of $25,377 in 2017, $33,071 in 2016, and $22,434 in 2015, and $39,913 in 2014. • As usual, there was large variation in net farm income in 2018, with top 20 percent profitability farms averaging a net farm income of +$217,827, and the low 20 percent profitability farms averaging a negative net farm income of ($125,961). Nearly 40 percent of the farm operations showed a negative average net farm income for 2018. • The average farm business in 2018 had very low profit margins (only 3.2%), an increasing debt-toasset ratio (49%), and a declining current ratio (151%). The “working capital”, which is the current assets minus the current liabilities in a farm business, has declined significantly in many farm

operations in recent years. The FBM Summary showed that about 60 percent of the farm operations lost working capital in 2018. • Another measure of the “financial health” of a farm operation is the “term debt coverage ratio”, which averaged only 91 percent in 2018. When the term debt coverage ratio drops below 100 percent, it means that the farm operation did not generate enough net farm income to cover the principal and interest payments on existing real estate and term loans, and thus had to use working capital or nonfarm income sources to cover the difference. In addition, the farm did not generate enough cash flow for any machinery replacement or other capital improvements. Over half of the farms in the 2018 FBM Summary faced that challenge.

BOTTOM LINE

Overall, net returns from both crop and livestock operations were negative for an increasing number of producers in 2018, even though the top one-third of net farm income operations continue to show some profit levels. The overall average financial health of many farm businesses has been declining, due to 8 years of low profit levels. There are some several serious “caution flags” on the horizon, with the lower 6 capital, increased debt-to-asset ratios, and the working extremely tight term debt coverage ratios. Complete farm 4management results are available through the University of Minnesota Center for Farm Management 2 Program at: http://www.finbin.umn.edu/ FINBIN 4-YEAR FARM BUSISNESS MANAGEMENT COMPARISON 0 (Data fromJ theF 2018 M Southern A M JMinnesota J A Farm S O Business N D Management Annual Report)

Farm Income Data 2015 2016 2017 2018 Gross Farm Sales $840,341 $791,868 $774,349 $759,254 Total Farm Cash Expense $724,501 $683,894 $680,554 $675,400 Median Net Farm Income $22,434 $33,071 $25,337 $20,655 8 Top 20% Net Farm Income $233,138 $228,906 $274,363 $217,827 Low 20% 100 Net Farm Income ($128,435) ($ 98,776) ($ 96,369) ($125,961)

6 (Ave.) Financial Ratios 85 Margin Operating Profit Current Ratio 4 Farm Debt/Asset Ratio 70 Term Debt Coverage Ratio 2

2.5% 4.4% 5.8% 3.2% 164% 162% 157% 151% 45% 45% 45% 49% 77% 90% 102% 91%

55 Corn (Cash Rent Land) Crop Data --Yield/Acre 206 205 215 179 400 Price/Bushel J F M A $3.54 M J J $3.37 $3.24 $3.48 A S O N D Direct & Ovhd. Costs/A. $793.30 $760.67 $748.29 $731.51 25 Cost/Bushel Produced J F M A $3.85 M J J$3.71 $3.48 $4.08 A S O N D Net Return/Acre ($55.26) ($55.36) ($36.75) ($57.26)

Crop Data --- Soybeans (Cash Rent Land) Yield/Acre 60 61 55 54 Price/Bushel $8.63 $9.40 $9.25 $8.73 Direct & Ovhd. $518.64 $503.22 $498.74 $495.13 100 Costs/A. Cost/Bushel Produced $8.63 $8.21 $9.02 $9.17 Net Return/Acre +$6.99 +$84.82 +$28.11 +$93.67(*)

Livestock Data --- Net Return Over Expenses Dair y – Per 70 Cow +$289 +$109 +$343 ($38) Beef Cow – Per Cow +$117 ($84) ($19) ($54) Beef Finishing–Per Cwt. ($46.01) ($11.06) +$15.56 ($9.40) 55 Hog Finishing–Per Cwt. ($ 0.43) ($ 2.00) +$ 5.64 ($5.57)

NOTES : Net Returns 40 for crops and livestock are before labor & management charges. Crop net returns include crop insurance and farm program payments. (*)The 2018 Net Returns for soybeans include an average MFP payment of $87/acre. 25 ***Table was developed by Kent Thiesse, Farm Management Analyst ***

Kent Thiesse is farm management analyst and senior vice president, MinnStar Bank, Lake Crystal. 507-381-7960); kent.thiesse@minnstarbank.com

Agriculture/ Agribusiness Corn prices — southern Minnesota

(dollars per bushel)

— 2018 — 2019

8 6

$3.4

2 0

$3.33

Source: USDA

Soybean prices — southern Minnesota — 2018 — 2019 8 20 100 16 6 85 12 470 8 255 4 40 0 0 J F M A 25 J F M A J F M A Source: USDA

$9.55

$8.07 M J J A S O N D M J J A S O N D M J J A S O N D

Iowa-Minnesota hog prices

$76.26

2019

2018

19 16

$45.76 A M J A M J A M J

M M M

Milk prices

J J J

A S O N D A S O N D A S O N D

Minimum prices, class 1 milk Dollars per hundredweight

— 2018 — 2019 25

2019 2018

$16.61

19 16 13 10

20 25 16 22 12 19 8 16 4 13 0 J 10

185 pound carcass, negotiated price, weighted average

— 2018 — 2019

20 100 25 16 85 22 12 70 19 8 55 16 4 40 13 0 J F 25 10 J F J F Source: USDA

(dollars per bushel)

$13.99 J

Source: USDA. Based on federal milk orders. Corn and soybean prices are for rail delivery points in Southern Minnesota. Milk prices are for Upper Midwest points.

C. Sankey

MN Valley Business • MAY 2019 • 25

Construction/Real Estate Residential building permits Mankato

Commercial building permits Mankato

- 2018 - 2019 (in thousands) $301,000 555000 $531,173

- 2018 - 2019 (in thousands) $293 $531,175 540000

462500

450000

370000

360000

277500

270000

185000

180000

92500

90000

Source: City of Mankato Information based on Multiple Listing Service and may not reflect all sales

- 2018 - 2019 (in thousands)

114

180

- 2018 - 2019 (in thousands) $157,300 $178,600

200

240

Median home sale price: Mankato region 250

300

150

122

100

120

0 J

Source: Realtors Association of Southern Minnesota

Source: Realtor Association of Southern Minnesota

Interest Rates: 30-year fixed-rate mortgage

Includes single family homes attached and detached, and town homes and condos

Housing starts: Mankato/North Mankato

— 2018 — 2019

- 2018 - 2019

5.5

5.0

4.3%

4.5

4.0

4.3%

3.5 3.0

Source: City of Mankato

Existing home sales: Mankato region

10 J

Source: Freddie Mac

Tim Lidstrom

We Know Commercial Real Estate.

SITE

COMMERCE DR.

ENS

Fantastic location on Lor Ray Drive near intersections with Commerce Drive & US Hwy 14, in Upper North Mankato’s prime commercial area!

Broker

E LGR

FOR SALE: 1.63 ACRE COMMERCIAL LOT

NEW!

CCIM, Broker

Karla Jo Olson

1721 Lor Ray Drive

Read us online!

Source: Cities of Mankato/North Mankato

LOR RAY DRIVE

www.lidcomm.com • 507-625-4606 100 Warren Street, Suite 708, Mankato, MN

26 • MAY 2019 • MN Valley Business

Gas Prices 5

Gas prices-Mankato

— 2018 — 2019

54 43 $2.51

32 21 10 0

$2.34

$43.29

+1.8%

Ameriprise

$124.59

$139.65

+12.1%

Best Buy

$68.90

$73.98

+7.4%

Brookfield Property

$19.49

$21.15

+8.5%

Crown Cork & Seal

$54.53

$56.67

+3.9%

Consolidated Comm. $10.18

$11.62

+14.1%

Fastenal

$61.73

$68.48

+10.9%

General Mills

$46.84

$51.56

+10.1%

Itron

$49.73

$47.59

-4.3%

Johnson Outdoors

$67.91

$73.25

+7.9%

$206.45

$213.53

+3.4%

Target

$76.08

$80.45

+5.7%

U.S. Bancorp

$51.38

$49.61

-3.4%

Winland

$1.10

$0.85

-3.4%

Xcel

$55.92

$55.67

-0.4%

— 2018 — 2019

21 M

$42.50

$2.52

Archer Daniels

$2.59

Percent change

April 10

March 11

Gas prices-Minnesota

Stocks of local interest

0Source: GasBuddy.com J F M A

C. Sankey

MN Valley Business • MAY 2019 • 27

Minnesota Business Updates

■

experience in a typical winter,” as snow and rain storms that caused flooding affected its Carbohydrates Solutions and Origination operations; rail transportation has been disrupted; its Columbus, Neb., corn processing complex was idled due to flooding and now is running at reduced rates; and unfavorable river conditions are severely limiting barge transportation movements and port activities.

■ General Mills tops forecast General Mills, the owner of supermarket staples Cheerios, Haagen-Dazs ice cream and Progresso soup, said its latest earnings topped forecasts — largely because of higher prices. The company, which also owns Wheaties, Lucky Charms and Annie’s, said that the actual sales volume of its products fell in North America and Europe during the quarter, although they did rise in Asia. But thanks to price increases — as well as a boost from buying pet food maker Blue Buffalo last year — total sales still rose 8% compared to a year ago. General Mills needed to raise prices to protect its profit margins, which were threatened by rising dairy inflation, Chief Financial Officer Donal Mulligan told analysts. The company owns Yoplait, the yogurt maker. It also helps to have some brands that people are willing to pay higher prices for. Although overall sales volume fell in the United States, General Mills still has several well-known brands that are very popular with consumers.

■ CHS upgrades facility Major improvements are being made to the Cenex Harvest States grain elevator facility in Superior, where 35 to 40 maritime vessels are loaded every year before sailing to Europe, the Mideast and North Africa. Business North reports the Wisconsin Harbor Assistance Program has awarded a $1.7 million grant for the project, in which 600 feet of dock is being rehabilitated. In addition to new sheet piling the concrete top is being replaced. The investment will ensure the grain elevators remain active long into the future, said Superior Mayor Jim Paine. Currently, up to 70 percent of the grain transported through the Port of Duluth-Superior is loaded on vessels from CHS. It totals from 40 to 50 million bushels annually, said Chuck Schwede, CHS director of agriculture business terminal operations. It is brought to the facilities from Upper Midwest farms in about 14,000 rail cars per year.

■ ADM hit by weather Archer Daniels Midland says it expects severe weather will reduce Q1 operating profit by $50-$60 million. ADM says extreme winter weather has affected its North American operations “beyond what we would

Employment/Unemployment Initial unemployment claims Nine-county Mankato region Major February Industry 2018 2019 Construction Manufacturing Retail Services Total*

220 139 41 131 531

Local non-farm jobs Percent change ‘17-’18

232 120 39 123 514

Construction 126000 126000 Manufacturing Retail 113000 Services 113000 Total*

4,842 1,527 985 3,667 11,021

126000

1400 700

100000

Minnesota Local non-farm jobs (in thousands)

8000 3500 3500 6000 2800 2800 4000 2100 2100

+6.4% +8.3% -11.7% -6.5% +0.8%

Services consist of administration, educational, health care and social 100000 assistance, food andJ otherF miscellaneous services. M A M J J A S O 100000 J don’t F equal M total A because M Jsome Jcategories A not S listed. O N *Categories

28 • MAY 2019 • MN Valley Business

2100

113000

Percent change ‘17-’18

5,153 1,653 870 3,430 11,106

3500 2800

+5.5% -13.7% -4.9% -6.1% -3.2%

Minnesota initial unemployment claims February 2018 2019

130,686 126,962

139000

Services consist of administration, educational, health care and social assistance, food and other miscellaneous services. *Categories don’t equal total because some categories not listed.

Major Industry 139000 139000

- 2018 - 2019

Nine-county Mankato region

2,985 1,960

200000 150000 100000

50000

700 0

- 2018 - 2019

2000 1400 1400

700

F M

M A A M

M J

J J

J A

A S

S O

O N

N D

service are located in Arizona, California, Nevada, New Mexico, Texas, and Utah. Drive Up allows customers to place an order in the Target app and select curbside pickup. Customers receive a mobile notification when their purchase is ready, and hit an “I’m on my way” button en route to the store. When they arrive, customers pull into a designated parking spot and an associate brings their order out to them. Nearly 200,000 items, including home furnishings, toys, electronics, household essentials, non-perishable food, and baby-care, are eligible for Drive Up.

■ Best Buy halts benefit Best Buy Co. suspended a new employee benefit for emergency child care after a published report found flaws at the company it was using to manage the program, Care.com, the Star Tribune reported. Richfield-based Best Buy launched the benefit in December after hearing from workers about the need for it. The program subsidized emergency child care for all of its U.S. employees, full-time or part-time, with workers charged just $10 as a co-payment for the benefit. But an investigation published by the Wall Street Journal found that Care.com was not performing full background checks of day-care centers and other providers, including verifying state licensing and running criminal histories of caregivers. The newspaper described cases where children had died or were injured or molested at centers listed on Care.com. Care.com, the world’s largest online marketplace for child care and other caregiving needs, has defended its practices, saying it provides preliminary screening as a baseline and that customers can purchase three tiers of more in-depth vetting.

139000

■ Ameriprise sells 126000 insurance businesses

3500 2800 2100

Ameriprise 1400 Financial Inc. is 700 selling its property and casualty 100000 0 J F M for A $1.05 M Jbillion. J A S O N D insuranceJ business A subsidiary of Madison, Wis.-based American Family Insurance Mutual Holding Co. is buying Ameriprise Auto & Home. The net proceeds to Ameriprise will be about $950 million. 3500 139000 Ameriprise, which originally bought the insurance 200000 8000 3500 139000 ■ Targets adds more pickup business in the 1980s, is looking to focus more on asset 2800 and wealth management. The company disclosed in its 150000 2800 Target keeps adding its curbside pickup service to 6000 126000 2100 report it was in the process of a strategic review annual 126000stores. more 2100 of the business line. Debuted in October 2017 and expanded in August 4000 100000 1400 113000 Drive Up is now available at more than 1400 2018, Target 113000 stores in dozens of states. New stores offering the 1,100 700 2000 50000 113000

700

100000 100000 J F

J M

Employment/Unemployment

F M A A M J

M J

J A

J S

Local number of unemployed

4000 2100 1400 2000

S N

O D

80005,910 5,909 6000

200000

J F M A M M A M J J M A M J J

J A A

J S S

A S O N O N D O N D

100000 50000 D

M MJ

J JA

J JS

A AO

S N S

O D O

N N

D D

(includes all of Blue Earth and Nicollet Counties) 200000 150000

February

100000

0 F

J M

F M A A M J

M J

J A

2018

2019

3.1% 61,225 1,967

3.2% 59,621 1,991

J S

A O

S N

O D

Unemployment rates Counties, state, nation County/area

- 2018 - 2019

120,117 121,431

150000

F M A M AJ FA M

Unemployment rate Number of non-farm jobs 50000 50000 Number of unemployed

100000

2000 0 F F

0 0 J F JM

Mankato/North Mankato Metropolitan statistical area

150000

4000

700 0 J 0 J

D 0

200000

Minnesota number of unemployed

- 2018 - 2019

Nine-county Mankato region 8000 3500 6000 2800

A O

Blue Earth Brown Faribault Le Sueur Martin Nicollet Sibley Waseca Watonwan Minneapolis/St. Paul Minnesota U.S.

February 2018

February 2019

3.2% 5.0% 5.1% 6.8% 4.0% 2.9% 4.8% 5.9% 5.2% 2.9% 3.8% 4.4%

3.2% 5.1% 5.3% 7.0% 4.4% 3.1% 5.3% 5.2% 5.2% 3.4% 3.9% 4.1%

Source: Minnesota Department of Employment and Economic Development C. Sankey

Minnesota unemployment MN Valleyinitial Business • MAY 2019 claims • 29

Sponsored by the Carl & Verna Schmidt Foundation

Financial advisers flock to exchange-traded funds

By Erin Arvedlund | The Philadelphia Inquirer

xchange-traded funds, or ETFs, are usually passive investments, because they automatically track an index or a basket of assets. But now, financial advisers are using ETFs more aggressively, as tools in an actively managed portfolio. And the fees on these ETFs are starting to approach zero, particularly as advisers compete and justify their own fees. That was one takeaway from Alpha Architect’s and Villanova University’s joint conference last week. Alpha Architect founded Philly’s first robo-adviser under Wesley Gray and Jack Vogel, and the firm has since morphed into a broader asset manager using ETFs. The conference brought together academics and investment professionals. Quants, or quantitative investors, are affectionately called “turbo-nerds.” They use computer science, algorithms, mathematics and even physics to try to crack the code to higher market returns. Here are ways quants and others are looking at the markets right now. Eric Balchunas presented on how portfolio models using ETFs represent a trend among financial planners. “Investing using ETFs is the new ‘active management’ among financial advisers,” said the senior ETF analyst with Bloomberg Intelligence. With no share classes and generally lower tax treatment, ETFs are steadily outpacing the growth of mutual funds, he added. That was supported by Ben Johnson of Morningstar, whose data show that ETFs now represent 20 percent of all fund assets, up from zero in 1993. Johnson is director of global ETF research at Morningstar. Financial advisers have become hyper-focused on fund fees, which is “rational and largely done to help clients, but can be taken to extremes,” Balchunas wrote. “Expense ratios have become the new past performance chart thanks to a shift toward a fee-only model, where the advisers get paid as a percent of client assets, and away from commissions paid by mutual funds.” Balchunas reiterated those same trends at the conference. Deal activity also is spurring ETF issuers to get into the advisory business, Balchunas told the Villanova crowd of suits and some students.

30 • MAY 2019 • MN Valley Business

“Index-making is the new active management. It’s like a little R2-D2: It’s a robot, but there’s a lot of human-ness to it,” he said. SoFi, the student loan refinancing start-up, said this month that it will launch its own SoFi-branded ETFs, with no fee for a period of time. In a sign of just how juicy asset managers believe this ETF business will become, Goldman Sachs last week said it’s purchasing Standard & Poor’s Investment Advisory Services, or SPIAS, a creator of model portfolios of ETFs. Goldman plans to keep S&P’s open architecture platform, which allows for ETFs from other firms to be included in portfolios, but Goldman also plans to launch its own model portfolios loaded with Goldman ETFs, according to Barron’s. As for fee cuts overall, the behemoth firms _ in particular BlackRock, State Street, Schwab and Invesco _ appear to be cutting their own fees to next to nothing as well as trimming head count and expenses, to keep up with Vanguard. But they “will likely be rewarded in the future” because fee cuts lead to billions of dollars flowing into the cheaper ETFs, despite performance, Balchunas added. Pain now, profit later. We also met up with a spin-off of Alpha Architect, a new index formed by Perth Tolle, formerly a private wealth manager with Fidelity and now an entrepreneur. Her “freedom weighted” emerging markets index started as an idea and is now an ETF reality, with the proposed ticker FRDM. Tolle is launching an index fund based on the principle of economic freedom and the value of liberty. Tolle calls this “Life+Liberty” index the world’s “first human rights-weighted factor-based indices” with a focus on emerging and frontier markets. The index mimics a portfolio of about 100 equity securities listed in emerging market countries and 79 personal and economic freedom factors categorized into three types. These are 1) the rights to life, such as no torture or political detentions; 2) liberty, such as rule of law and due process, and 3) property, including strong monetary and fiscal institutions. It should be fascinating to watch how this ETF trades once it comes to market. MV

Sponsored by the Carl & Verna Schmidt Foundation

Is your adviser steering you into fee-heavy 529 plan?

By Janet Kidd Stewart | Tribune News Service

etirement savers with kids should pay attention to a new crackdown on brokers who sell college savings plans. Regulators are inviting investment advisers and firms to self-report their sales practices after regulatory reviews found a substantial number of cases in which investors weren’t told about varying fees associated with the plans. Firms have until the end of April to declare participation, and detailed reports on their sales practices are due in May to the Financial Industry Regulatory Authority, or FINRA. Firms who enroll in the voluntary program are promised a more lenient restitution than if they are later found in violation. This is particularly timely because the Tax Cuts and Jobs Act of 2017 opened up 529 education savings plans to allow distributions for kindergarten through 12th grade tuition. With the change, it becomes even more important for savers to understand fees associated with these programs. Class A shares, for example, typically involve an up-front sales charge, or load, while class C shares often involve ongoing annual loads. So, for example, someone planning to save for many years for a young child’s eventual college expenses might be better off with class A shares. “They are amazing plans and have been expanded, but there have been abuses,” said Andrew Stoltmann, a Chicago attorney who represents investors in securities cases. “Firms have often recommended the pricier option that isn’t in the best interest of the plan holder.” Even if the share-class loads are properly disclosed, the person recommending the plans may not be required to tell investors that a no-load plan may be available in their home state that offers tax breaks the broker-sold plan doesn’t have, Stoltmann said. And that’s where your retirement comes in. Every penny in fees on a college savings plans is a penny less that goes into the 401(k), IRA or other retirement savings vehicle. Always ask your adviser if he or she is being paid a

commission to recommend a particular plan, said Mark Kantrowitz, publisher of savingforcollege.com. And with the new ability to use 529 funds for K-12 tuition, more people will likely be parking funds for a much shorter time, making hefty front-end loads all the more egregious, he said. “Investors may do everything with their advisers, but in some cases, they may be better off (in directsold state plans) because lower fees are the key to maximizing returns,” Kantrowitz said. If you do choose to work with an adviser, make sure you’re getting your money’s worth by getting a considered opinion on the best withdrawal strategy when you start taking out the money, said Susan Licht, a financial services group partner with law firm KattenMuchinRosenman LLP. Just as you expect your adviser to recommend the most tax-efficient way to tap retirement accounts, you should get a thoughtful plan on how risky an educationsavings portfolio should be given the time horizon and how best to make changes as the goal gets close. “529 plan brokers should have discussions with investors about what plan to use, who is the beneficiary and how it will be used,” said Licht, a former FINRA official. “It’s only with a fulsome discussion of all these factors that an investor can make a sound decision.” And by the way, you may be paying for advice on these plans in other ways. Some advisers include these plans in the overall assets under management fees they charge, which is separate from the shareclass issue FINRA is dealing with in the initiative. If you have 529 plans worth $100,000 and work with a financial adviser who charges 1 percent per year, that’s $1,000 annually you’re paying to have that person watch over the funds. That could be a bargain if you feel you need custom advice that fits with your other investments, or it could be a waste of money if a low-cost, age-based option is available in your state plan. The key is to consider what advice you want and how long you’ll pay for it, and choose accordingly. And that’s pretty much like retirement advice, too.

MN Valley Business • MAY 2019 • 31

MEMBERSHIP THAT PAYS It pays to be connected, and connections are what we do best. In today’s economy it can be hard to promote your business with so many competitors, but no matter what size your business is, we have an affordable membership plan that will fit your budget.

JOIN AT GREATERMANKATO.COM/JOIN

YOUR MEMBERSHIP OFFERS: • Welcome announcements on social media and other outlets • Your business’ name on our directory with contact info • A member window cling (for increased visibility) • Access to the Greater Mankato Growth member logo • AND so much more!

$ If you want to invest in your business and advance Greater Mankato’s overall community, membership with Greater Mankato Growth is the membership for you, and it pays.

STARTING AT

327 A YEAR

*Price of Basic Membership

3 Civic Center Plaza, Suite 100, Mankato • 507.385.6640

32 • MAY 2019 • MN Valley Business

greatermankato.com

2019

2019 SPONSOR:

5 - 7 PM

JAN 8 FEB 5

AmericInn Hotel & Conference Center

JUL 9

U.S. Bank

Laurels Edge Assisted Living

AUG 6

Pantheon Computers

240 Stadium Road, Mankato 77 Stadium Road, Mankato

WHY JOIN MAR 5 APR 2

MAY 7 JUN 4

BankVista

1501 Adams Street, Mankato

Carlson-Tillisch Eye Clinic

120 North Broad Street, Mankato

EXPOSURE

1 Civic Center Plaza, Mankato

GREATER MANKATO GROWTH?

SEPT 3

Mankato Clinic - North Mankato Family Medicine

OCT 1

Hilton Garden Inn

Courtyard by Marriott Hotel & Event Center NOV 5 901 Raintree Road, Mankato

115 East Hickory Street, Suite 200, Mankato

1575 Lookout Drive, North Mankato

20 Civic Center Plaza, Mankato

Mayo Clinic Health System 1025 Marsh Street, Mankato

Dotson Iron Castings Build your Brand; Exclusively Diamonds DEC 3 200 West Rock Street, Mankato 1601 Adams Street, Mankato grow your business. Stand out and get It’s not just st WHO WHO you ou 2019 March Business After Hours hostedkby BankVista noticed! know, it’s who knows YOU. Networking IS Powerful.

NETWORKING TW WORKING ORKING

BE IN THE KNOW

LEARNING

Gain access cces to Member Exclusive Content to help grow your business.

TALENT RETENTION

MEMBER EXCLUSIVE BENEFITS

Receive our member only emails making you the first to know the latest news.

REFERRALS

NOTE: Calendar magnets are available at the check in table at each Business After Hours event andmember they are available at our We only refer office at 3 Civic Center Plaza, Suite 100. Also, a downloadable version is available at greatermankato.com/business-after-hours.

businesses. Word of mouth Keep your employees and direct referrals come engaged and retained from withGreater Mankato Growth member businesses at the Business After Hours gives representatives Engaged or higher an opportunity from being aLevel valued access to our member only to get together with one another to exchange ideas and learn about each other’s businesses. For more information on member of GMG. these and other member events and programs. events, visit greatermankato.com/events.

SHAPE YOUR CREDIBILITY Raise your reputation by COMMUNITY belonging. Research shows

Your investment helps us continue to build the best environment for your business and its employees.

that businesses who belong to a chamber of commerce are more successful.

greatermankato.com/join April 2018

MN Valley Business • MAY 2019 • 33 greatermankato.com/join

NEW LOCATION

RIBBON CUTTING

River Bend Express 302 North Riverfront Dr, Mankato

Spherion Staffing Services 223 Belgrade Avenue, North Mankato

NEW LOCATION

Sun Moon Yoga 635 South Front Street

Union Market 615 South Front Street

GROWTH

in Greater Mankato

NEWEST Greater Mankato Growth Members

Pneumat Systems, Inc. 110 Mohr Drive, Mankato

Edward Jones - Jennifer Seys 551 Belle Avenue, Suite A, Mankato

Federated Insurance 2000 Technology Drive, Mankato

Last Switch Payment Solutions 8524 College Trail, Inver Grove Heights

Lupulin Brewing 570 Humboldt Drive, Suite 017, Big Lake

LEADERSHIP Training with a COMMUNITY Focus Form new personal and professional relationships while exploring relevant business, social and community topics during the ninemonth-long Greater Mankato Leadership Institute program. Open to all Greater Mankato Growth members, engaged level or higher.

For more information or to apply visit greatermankato.com/leadership

34 • MAY 2019 • MN Valley Business

Apply for the 2019-20 class by JUNE 1.

PRESENTED BY:

16TH ANNUAL

Starting June 6 11:00 am - 1:00 pm

Civic Center Plaza, Mankato

ADMISSION IS FREE

WHY JOIN

GREATER MANKATO GROWTH? Featuring music, entertainment and local food. EXPOSURE

Build your Brand; grow your business. Stand out and get noticed!

NETWORKING TW WORKING ORKING

It’s not just st WHO WHO you ou 2019 SPONSORS: know, it’s who knows k Anti-Temperance League YOU. Networking IS Powerful.

June 6

The Gentlemen’s

June 13

The Holy Rocka Rollaz

BE IN THE KNOW

June 20LEARNING The Federales Gain access cces to Member

Receive our member only emails making you the first to know the latest news.

June 27Exclusive The Content Fattenin’ Frogs to help

MEMBER EXCLUSIVE REFERRALS MankatoWe Downtown Kiwanis BENEFITS only refer member ALL YOU

grow your business. For more information visit greatermankato.com/songs

TALENT RETENTION

CAN EAT

Keep your employees engaged and retained with access to our member only events and programs.

Members of

businesses. WordCulinary of mouth in partnership with South Central College Arts & CityArt and direct referrals come from being a valued member of GMG.

SHAPE YOUR CREDIBILITY Raise your reputation by COMMUNITY belonging. Research shows

SATURDAY, MAY 11th

Your investment helps us continue to build the best environment for your business and its employees.

that businesses who belong to a chamber of commerce are more successful.

8:00-10:30 am

ADULT: $9 | AGES 6-12: $4 | AGES 5 & UNDER: FREE

cityartmankato.com

PURCHASE TICKETS ONLINE AT CITYARTMANKATO.COM OR AT THE DOOR.

THE LOOSE MOOSE SALOON & CONFERENCE CENTER 119 South Front Street, Mankato Free Parking in the Civic Center Parking Ramp greatermankato.com/join mankatokiwanis.org

Activities • • • •

Meet the 2019 CityArt Walking Sculpture Tour Artists Free guided tours of the new sculptures, 9:30, 10:00 and 10:30 am Music from Nate Boots Kids Activities

Menu • • • •

April 2018

Pancake Bar with Topping Station Ham Carving Station Breakfast Potatoes, Eggs Coffee & Orange Juice

southcentral.edu

MN Valley Business • MAY 2019 • 35 greatermankato.com/join

World-class & local:

EXPERIENCE FIVE OF MARRIOTT’S TOP SPAS IN ONE STATE: ALABAMA After a round of golf, enjoy a relaxing massage or body treatment at a great

at Montgomery, the Spa at Ross Bridge in Hoover and the Spa at the Battle

Marriott spa. In North America, five of the top Marriott and Renaissance

House in Mobile are always highly ranked for pampering their guests. All

spas are found on Alabama’s RTJ Spa Trail. For guest satisfaction, the Spa

five of these spas are part of the RTJ Resort Collection and feature innovate

at the Marriott Shoals in Florence and the Spa at the Grand Hotel in Pt. Clear

treatments inspired by Southern Hospitality. Clearly great golf and spas

are consistently ranked in Marriott’s top 10. For Renaissance Hotels, the Spa

work well together in Alabama. Come experience them for yourself.

FLORENCE · HOOVER · MONTGOMERY · MOBILE · POINT CLEAR The

Resort Collection on Alabama’s Robert Trent Jones Golf Trail · rtjresorts.com/spacard

FOOD FOOD

RICHARD RICHARD&&MARY MARY SCHMITZ SCHMITZ ENTREPRENEURSHIP ENDOWMENT ENDOWMENT ENTREPRENEURSHIP

ENTREPRENEUR, ENTREPRENEUR, FRANK FRANK JACKMAN, JACKMAN, RETURNS RETURNS TO TO CAMPUS CAMPUS Written Writtenby byMadeline MadelineOines, Oines,Marketing MarketingAssistant Assistant

ness nessExperience Experiencehosted hostedFrank Frankduring during class classwhere wherehe heshared sharedhis hisjourney journeyand and allowed allowedthe thestudents studentstotopresent presenttheir their products productsand andcompanies. companies.He Heprovided provided valuable valuablefeedback feedbackon ontheir theirpitches pitchesand and helped helpedthem themarticulate articulatethe thevalue valueof of their theirproducts. products.Later Laterininthe theday, day,Frank Frank met metwith withour ourfood foodentrepreneurial entrepreneurialstustudents dentssharing sharingvaluable valuabletips tipsand andadvice. advice. Richard RichardSchmitz, Schmitz,the thedonor donorand andongoongoing ingsupporter supporterof ofthis thislecture lectureseries, series,had had the thechance chancetotomeet meetwith withFrank Frankover over coffee coffeetotodiscuss discusshow howLocal LocalCrate Crateisis connecting connectinghomes homeswith withreal, real,fresh freshfood food sourced sourcedlocally. locally.Richard Richardand andFrank Frank share shareaapassion passionwhen whenititcomes comestotothe the impact impactthat thatfresh freshfood foodand andagriculture agriculture have haveininour ourcommunities. communities. Frank’s Frank’slecture lecturebegan beganwith with him himsharing sharinghis hisstory storyof ofthe thereal-world real-world experiences experiencesthat thathe heparticipated participatedininon on campus. campus.He Heexplained explainedthe thelogic logicbehind behind his hisdecision decisiontotokick kickoff offthe thecompany company of ofLocal LocalCrate Crateafter afteraafew fewyears yearsof of experience experienceininthe thecorporate corporateworld. world.As As the thelecture lectureunfolded unfoldedhe hetalked talkedabout about the theopportunity opportunitytotobe bepart partof ofthe theTarget Target Techstar TechstarAccelerator AcceleratorProgram Programwhich which helped helpedlaunch launchLocal LocalCrate Crateinto intothe the next nextphase phaseof oftheir theircompany. company.You Youcan can now nowfind findtheir theirproduct productininTarget Targetand and other otherlocal localretailers. retailers. During Duringthis thislecture, lecture,Dean Deanof of the theCollege Collegeof ofBusiness, Business,Brenda BrendaFlanFlannery, nery,took tookthe thestage stagetotohave haveaaconverconver-

Dean DeanBrenda BrendaFlannery Flanneryand andFrank FrankJackman Jackman

sation sationwith withFrank Frankwhile whilediving divingdeeper deeper into intohis hisstrong strongbusiness businessacumen acumenand and entrepreneurial entrepreneurialspirit. spirit.To Toclose closethe theleclecture, ture,the theaudience audiencehad hadthe theopportunity opportunity totoask askquestions questionswhich whichranged rangedfrom from topics topicson onrelationships relationshipswith withinvestors, investors, totoinsights insightson onhow howtotorun runaacompany, company, and andhow howtotoremain remainpassionate passionateabout about the thecompany’s company’smission. mission.This ThisReal Real World WorldLearning Learningexperience experiencewas wasininspiring spiringand andinsightful insightfulfor forthe thestudents, students, faculty facultyand andcommunity communitymembers. members.

Photos Photosby bySocial SocialButterfly Butterfly For Formore moreinformation information Event EventLecuture: Lecuture:cob.mnsu.edu/foodlecture cob.mnsu.edu/foodlecture College Collegeof ofBusiness: Business:cob.mnsu.edu cob.mnsu.edu Local LocalCrate: Crate:localcrate.com localcrate.com

Minnesota Minnesota State State University, University, Mankato Mankato College College of of Business Business

On OnMarch March25th, 25th,Local LocalCrate Crate co-founder co-founderand andCollege Collegeof ofBusiness Business Alum, Alum,Frank FrankJackman, Jackman,took tookthe thestage stage for forthe theannual annualRichard RichardSchmitz SchmitzFood Food Entrepreneurship EntrepreneurshipSeries Serieslecture lecturetoto speak speaktotostudents studentsand andcommunity community members membersabout abouthis hiscompany’s company’senentrepreneurial trepreneurialjourney. journey.Local LocalCrate Crateisis aarapidly rapidlygrowing growingfood foodcompany companyon on aamission missiontotobecome becomethe thefirst firstlocally locally driven drivenfood foodplatform platformon onaanational national scale. scale.Frank FrankJackman Jackmangraduated graduatedwith with his hisbachelor’s bachelor’sdegree degreeininmarketing marketing from fromMinnesota MinnesotaState StateMankato Mankatoand and began beganhis hiscareer careerininthe thefood foodindustry, industry, where wherehe hemet metexecutive executivechef chefand andbusibusiness nesspartner, partner,Mike MikeStaulbaum. Staulbaum.As Asthey they discovered discoveredthe themeal mealkit kittrend trendon onthe the rise, rise,they theylaunched launchedLocal LocalCrate Cratewith withaa unique uniqueand andfresh freshtwist. twist.Local LocalCrate’s Crate’s vision visionisistotoconnect connecthomes homeswith withlocally locally sourced, sourced,fresh freshand andhealthy healthyingredients ingredients totocreate createan anexperience experiencefor forconsumconsumers. ers.Their Theirmeal mealkits kitscontain containeasy easytoto make makerecipes recipeswith withingredients ingredientsfrom from local localfarms farmsand andmakers. makers.Their Theirmotto, motto, “Simple “Simplemeals, meals,cook cookhappy, happy,eat eatlocal” local” shines shinesthrough throughthe thework workthey theyare aredoing doing inincreating creatingaafood foodrevolution revolutionfor forconconsumers sumersininthe theMidwest Midwestand andCalifornia. California. Many Manystudents studentsaround aroundcamcampus puswere weregiven giventhe theopportunity opportunitytoto get getinspiring inspiringinsights insightsand andmentorship mentorship from fromFrank Frankthroughout throughoutthe theday. day. The The United UnitedPrairie PrairieBank BankIntegrated IntegratedBusiBusi-

Frank FrankJackman Jackmanand andRichard RichardSchmitz Schmitz

MN Valley Business • MAY 2019 • 37

KEEP YOUR EMPLOYEES HEALTHY.

Mayo Clinic Health System Occupational Medicine offers the services you need to help keep your employees healthy and safe. • DOT physicals

• Injury care

• Medical surveillance

• Pre-employment exams

Mayo Clinic Health System in Mankato Call 507-594-7370 to learn more. mayoclinichealthsystem.org

MN Valley Business • MAY 2019 • 38