Iowa Select Farms Selectcare Newsletter qtr1 2014

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ISSUE 1/ 2014

www.iowaselect.com

Reflecting ON OUR PAST

Celebrating OUR FUTURE


REFLECTING ON OUR PAST

CELEBRATING OUR FUTURE We’re excited to bring you this special issue of SelectCare. As winter thaws and our system begins to breathe new life and recover from one of the harshest swine diseases ever thrown at the U.S. pork industry, we wanted to take a moment to reflect and appreciate the resilience of our people and this company. Nobody ever said farming was easy, in fact some say it’s one of the hardest professions around. But as our population grows we continue to be up for the challenge of producing safe, affordable and quality food. Throughout the pages of this newsletter you’ll see we’ve taken a look back at the history of Iowa Select Farms, going back even further to how Deb and I got our start in agriculture. As we keep on top of our daily responsibilities and face challenges head on, we wanted to take a moment of reflection and celebrate the future. Many of you have been with the company from the very beginning, living through the frenzy pace, scope and volume of work it took to build our business from the ground up. Others joined us at the heart of our industry dealing with PRRS, pitching in to help establish and enforce strict biosecurity protocols and build the first-ever HEPA filtered farm in the U.S. Yet others who are new to the company might see first-hand the efforts of the Deb and Jeff Hansen Foundation on our communities but not realize the commitment we made from the very beginning to find ways to support those in need.

ISSUE 1 / 2014

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Reflecting ON OUR PAST

Celebrating OUR FUTURE

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Throughout the growth of the company, the challenges we’ve faced and the accomplishments we’ve celebrated, one thing has proven instrumental in driving our decisions. Twenty years ago we might not have had a name or logo for it, but SelectCare was resonating through our business in every way. Our ideals, values and beliefs around people care, animal care, environmental care and community care were as strong back then as they are today, we’ve just found unique and better ways to communicate and celebrate our culture. Have we missed some great milestones in this newsletter? Absolutely. None were left out with intention, in fact if you feel we’ve missed some important accomplishments, projects or programs I encourage you to speak up so they become captured and part of our official history. As we look toward the next few decades there are two things I know for sure. I know there always will be challenges that attack our business — new diseases, supply challenges, market volatility, natural disasters and threats from groups who want to put food producers out of business. The list goes on. But more importantly, I know it’s you—our employees and contractors — who deserve all of the recognition for what Iowa Select Farms is today and will be tomorrow!

Jeff Hansen

Jeff Hansen CEO and President Iowa Select Farms

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ABOUT THE COVER Reflecting on the past, celebrating our future. This cover features some of our favorite things we’re always proud to draw attention to — pigs, pork, and most importantly, our people. Turn the pages to read about the history of Iowa Select Farms and see how our SelectCare values have been instrumental in driving us forward yesterday, today and tomorrow.


HIGHLIGHTING PRODUCTION SUCCESSES Congratulations SelectPride Award Winners We kick off each new year by taking the time to look back, recognize our accomplishments from the previous year and push forward on new key strategies and initiatives to make our system better. It’s easy to look back at 2013 and mark as “the year of PEDV” as we were on record pace for production… until October when the disease hit our north central sow farms in full force. Despite the setback, in the true spirit of Iowa Select Farms we worked together to get our farms back up and running and still achieved success in many areas. Our system improved efficiency in terms of whole herd feed conversion, the quality and genetic potential of our female improved and we hit our cost budgets. In fact, in terms of pork produced — we marketed 3.31 million pigs last year and set a record as a system with 2.5 percent increase in overall production of pork, year on year. It was a great year!

SOW AWARDS QUARTER 1, 2013

1st Place 2nd Place 3rd Place 4th Place 5th Place 6th Place 7th Place 8th Place 9th Place 10th Place

Sows 21 Sows 22 Sows 114 Sows 20 Sows 26 Sows 118 Sows 29 Sows 117 Sows 9 Sows 8

QUARTER 2, 2013

1st Place 2nd Place 3rd Place 4th Place 5th Place 6th Place 7th Place 8th Place 9th Place 10th Place

Sows 112 Sows 118 Sows 20 Sows 4 Sows 114 Sows 5 Sows 30 Sows 26 Sows 29 Sows 115

FINISHING AWARDS

MARKETING Highest Honor Dan Roth 2nd Place Honorable Mention 3rd Place Honorable Mention 4th Place Honorable Mention 5th Place Honorable Mention 6th Place Honorable Mention 7th Place Honorable Mention 8th Place Honorable Mention 9th Place Honorable Mention 10th Place Honorable Mention

2013 NURSERY AWARDS

Kevin Archer Loren Pudenz Mark Hendricks John Wessels Carl Smit Al Loux Shannon Loyd Tim Westphal Jason Paysen

Highest Honor for Top Nursery Performance Honorable Mention for Multi Source Performance Honorable Mention for Multi Source Performance Honorable Mention for Performance Capacity <10,000 Honorable Mention for WF Nursery Performance

We know the brunt of the PEDV will hit the finishing system in 2014; however thanks to the efforts of many who worked hard to lessen the impact of the disease we’re on pace to have another good year. At the heart of our production achievements are the people who work day in and day out on our farms, or those who oversee multiple farms throughout the finishing geography. The SelectPride Award continues to be the highest honor an individual or farm can receive for production success. Winners are announced during the Production Management Meeting in January and certificates are sent to the farms to display in the break room or office. Here are the winners!

QUARTER 3, 2013

1st Place 2nd Place 3rd Place 4th Place 5th Place 6th Place 7th Place 8th Place 9th Place 10th Place

Sows 116 Sows 30 Sows 115 Sows 118 Sows 4 Sows 113 Sows 114 Sows 19 Sows 18 Sows 5

QUARTER 4, 2013

1st Place 2nd Place 3rd Place 4th Place 5th Place 6th Place 7th Place 8th Place 9th Place 10th Place

Sow 30 Sow 118 Sow 18 Sow 29 Sow 113 Sow 26 Sow 112 Sow 19 Sow 116 Sow 25

2013 OVERALL FINISHING PERFORMANCE Highest Honor – Mark Hendricks 2nd Place Honorable Mention Loren Pudenz 3rd Place Honorable Mention Doug Keninger 4th Place Honorable Mention Shannon Loyd 5th Place Honorable Mention Jeremiah Hall 6th Place Honorable Mention Chris Smith 7th Place Honorable Mention Dan Roth 8th Place Honorable Mention Kevin Archer 9th Place Honorable Mention Tim Westphal 10th Place Honorable Mention Al Loux

Liberty West Hornung Nursery Burnett Nursery 118 Venner #2

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The story of NEW MODERN CONCEPTS & IOWA SELECT FARMS

Jeff Hansen is born to second-generation hog farmers Laurence and Shirley Hansen at Ellsworth Municipal Hospital in Iowa Falls. Jeff has two brothers — Steve and Larry. Growing up on a farm near Iowa Falls, Iowa, Jeff Hansen and his two brothers serve as what Jeff calls “Dad’s skid-steer loaders.” Laurence Hansen buys several acreages in the area with old barns and cattle sheds, and fills them with feeder pigs. “Our job was to rotate from acreage to acreage to clean those barns,” Jeff Hansen explains. “As I pitched manure from those sheds and barns, I thought to myself — there’s got to be a better way!”

Hansen is an active member of the Iowa Falls FFA Chapter, serving in a leadership role during his junior and senior years. Today, Iowa Select Farms supports many FFA and 4-H projects and programs to foster and encourage students who are interested in agriculture.

Fresh out of high school in 1976, Hansen decides to forego college, gets married and begins working for his father. His wife, Deb, works in a nearby Farm Bureau Insurance office. Her parents own a carpet-vinyl flooring business, so he pitches in to help while earning a few extra dollars. Looking to supplement the young couple’s income further, Hansen asks his father for permission to convert one of the old barns for farrowing. Laurence Hansen says yes. Hansen soon buys three sows from a local sale barn, some used farrowing crates for $35 apiece and then he and Deb start their own farrowing operation.

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Within three years, the sow herd grows 150 sows, and Deb quits her job to manage the farrowing house. The sows are turned out morning and evening for feed and water, and crates are hand-scraped. Feeder pigs are sold to Hansen’s father. Recalls Hansen: “That worked for a while, but one day Deb came to me and said: ‘Those sows are mean; they are too aggressive and the labor is wearing me out. This job has become a little overwhelming!’ ” Thumbing through a magazine, Hansen finds a solution: elevated farrowing stalls with steel slats, a feed pan and automatic waterers. He contacts the company, places an order and asks to become a dealer. “I had a hunch there were other farmers with the same issues, so why not find ways to help them, too?” he recalls. Ever the salesman, Hansen places ads in area magazines and local newspapers announcing a hog-equipment open house in his garage. “People started coming at 8 o’clock in the morning and the last left about 11 o’clock at night,” he remembers. Deb realizes she needs a filing system to keep track of orders, so she buys a recipe box and records orders on recipe cards. His business grows rapidly, but problems with the stall’s design begin to surface. When the manufacturer refuses to make changes, Hansen launches plans for his own steel fabrication shop to build farrowing stalls, nursery decks, feeders, gating and other livestock equipment. Recognizing a competitive advantage in fast-turnaround orders, Hansen begins fabricating and selling his own equipment directly to area livestock farmers. This flexible business model enables him to make design changes to improve the products rapidly. This manufacturing company later becomes known as County Line Engineering.

1979 Just three years out of high school, Jeff Hansen asks a local banker for an operating loan. “Dick Miller gave me the biggest break in the world,” he recalls. “I told him I had rented a building and we were going to sell livestock equipment. I had no money and no credit record, but he believed in me and my story.” With a $50,000 loan, Modern Hog Concepts is off and running.

Newspaper clippings from the Iowa Falls Times Citizen, Iowa Farm Bureau Spokesman, and The Des Moines Register.

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The story of

New Modern Concepts & Iowa Select Farms

Two years later, Modern Hog Concepts outgrows the rented property and construction of a new facility begins. As the company grows, Hansen’s hunch that other producers are looking for less labor-intensive methods proves to be correct. He remembers setting a personal sales goal of selling $1 million worth of livestock equipment in a year. His sow herd begins to shrink from its high of 300. The farm crisis takes hold in the early ’80s, and by the middle of the decade times get very tough for pork producers and steel fabricators. But Hansen has built solid relationships with various construction companies, whose sales staffs often refer their clients to him for equipment.

In 1983, Hansen becomes a Lester’s Buildings dealer, which enables him to build a turnkey production system, start to finish. Modern Hog Concepts establishes retail locations in West Liberty, Pocahontas and Oelwein, IA. The company also has a plant in Rochester, MN. The company hits its peak of 60 employees in both sales and manufacturing.

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The company also operates retail stores in Fairmont, MN, and Rochester, IN.


To diversify Modern Hog Concepts purchases the assets of Stockdales Corporation, a local bin and grain-drying equipment business, in 1987. With the purchase, Modern Hog Concepts also acquires the Stormor bin franchise. With the addition of Stockdale Generation II, Modern Hog Concepts reaches 70 employees and generates more than $5 million in annual sales. In July, Hansen sells five-sixths of Modern Hog Concepts to five Iowa Falls-area business leaders to limit the risk of sole ownership and enable diversification. He continues to direct operations as President and Chairman of the Board. In December, Hansen purchases lots 6 and 7 in the Iowa Falls Industrial Park, adjacent to the Modern Hog Concepts facilities that were purchased and built in 1981.

As the farm crisis wanes, growth in hog production begins again. Only this time, instead of remodels, new, more expansive confinement facilities are being planned and built. During various construction projects around the country, Hansen keeps his eye on developments in North Carolina. At the same time, consumers are demanding leaner pork, and it is clear that these larger, integrated models could deliver the consistency, quality and leanness that customers want. “At that point, there were two things I knew for sure — Iowa was best suited to build an integrated pork production system and, second, I knew I could figure out how to do it,” Hansen explains. Furthermore, Hansen knows he needs to find a packer contract to support his risk management plan. It isn’t long before he obtains a contract with Farmland Foods for the hogs produced from 10,000 sows. He is off and running. Iowa Select Farms is born.

1992 With the Farmland contract in hand, Hansen thinks big in terms of assembling a talented management team to expand rapidly and to produce lean hogs efficiently and competitively. He is confident of success and realizes that such an aggressive plan needs the right people upfront. He’s seen businesses fail when they take the typical path of preserving capital and hiring talent too late. “Being so deep in the equipment and construction side, we saw all kinds of facilities and different ideas,” Hansen recalls. “Different people had different ideas about what they thought a hog operation should look like.” He purchases a farm north of Iowa Falls and begins planning his first 4,100-sow farm. “I figured if I was going to get back in, I wanted to spread the costs and efficiencies, the labor costs across more sows,” he notes. “We designed it with a pull-plug system, recharged with water from lagoons — new technology for this part of the country.” Iowa Select Farms also becomes an early adopter of threesite production, providing that pigs are weaned off-site, where their health is not compromised by the sow herd. During the third week of December, Hansen hires the first production employees for Sow 1. The first animals are delivered two days before Christmas.

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Iowa Select Farms officially begins operations by bringing on key employees specializing in live production, building engineering and design, information technology, genetics and nutrition, veterinary medicine, human resources, finance and accounting. Iowa Select Farms sets up headquarters at the New Modern Concepts location on Brooks Road in Iowa Falls. The small team works at top speed to design and construct the infrastructure for one of the largest pork producers in the world. While Hansen works to secure financing, and design and engineer company-owned sow farms, production begins on sow farms leased from another production system. Iowa Select Farms makes a key strategic decision: forgo getting into the feed-milling business and instead rely on local cooperative systems, along with selecting excellent privately-owned mills. These long-term strategic partnerships and availability of high-quality feed allow the company to grow finishing spaces across north-central, west-central and western Iowa, without the capital expenses and overhead of feed mills and trucking fleets. With two sow farms under construction, Iowa Select Farms farrows its first litter of pigs in leased facilities on May 9. That spring and summer, 100-year rains devastate the corn crop, but Hansen has the foresight to hedge his corn needs. More severe weather arrives and a tornado demolishes the farrowing barns at the second sow farm, just weeks before the first litters are due. Hansen leads the cleanup, bringing everyone The first litter of pigs Iowa Select Farms ever produced was born at Sow 1 on May 9, 1993. She had 14 together at the born alive with no stills or mummies. site, where they pick up debris and begin rebuilding in just one day. “We were off to a rocky start,” Hansen remembers. “But everyone came together to clean up and rebuild in time to welcome those first litters. Many of those employees are still with us today, some in production leadership roles. I owe them a lot.” Recognizing the need for good people, Hansen establishes competitive wages for his workforce, along with a full benefits package and a profit-sharing plan based on the performance of the farm where the employee works. By the end of the year, the company has 18 employees, 7,000 sows in production at two sow farms, and markets 8,135 pigs.

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The sow herd grows to 25,000 sows on eight sow farms. Iowa Select Farms markets 104,997 hogs and employs 72. The company builds Scott Township West as a five-barn finishing research facility where 10-15 trials are conducted each year. The research examines nutrient needs of swine, along with the effectiveness of feed additives on different genetic lines. The farm, later converted to a wean — finish facility, continues to be used for research. Aggressive plans are put into place to build five 3,850-head sow farms with state-of-the-art, two-stage anaerobic lagoon systems, which are common in North Carolina but relatively new to Iowa. To reassure the public and regulators, Hansen voluntarily installs monitoring wells every 680 feet around the lagoons, even though such wells are not required by the Iowa Department of Natural Resources. Despite Iowa Select Farms’ demonstrated willingness to abide by and even exceed environmental regulations, the company faces a storm of controversy. Many opponents assert that large-scale pork producers endanger the environment while others express nostalgia for family farms that are perceived to be endangered by larger operations.


The controversy continues for years, creating ongoing challenges for employees confronted by staunch opposition from friends, neighbors and community leaders. The company implements a public relations campaign designed to educate Iowans about the economic forces driving fundamental changes in the industry and about positive aspects of large-scale pork production, such as job creation in shrinking rural communities. The campaign focuses on having company leaders and advocates explain their views to Iowa legislators and journalists as well as farmers, agricultural suppliers and business and community leaders. They also give talks at civic clubs to address concerns and answer questions about the company. In addition, Iowa Select Farms employees are recognized for making “Good Neighbor” visits to assist farm families living near sites. In less than two years, Hansen’s aggressive growth in north central Iowa makes Iowa Select Farms the second largest pork producer in Iowa and the 24th largest in the U.S. The largest Iowa-based pork producer is listed as Swine Graphics Enterprises of Webster City with 13,500 sows. Having outgrown the New Modern Concepts space, Hansen moves his team into the front offices of the Midland Power Building at 811 South Oak Street in Iowa Falls. Finding experienced labor proves difficult, so Iowa Select Farms establishes an in-house course to provide technical training to employees new to animal husbandry. To ensure compliance of all state and federal regulations, the company establishes an in-house environmental department to oversee all nutrient management planning, regulatory compliance of new and existing sites, and proactive environmental stewardship efforts. In early April, despite the company’s continuing rapid growth, employees play a key role in building the Scenic City Playground just west of Pineview Elementary School in Iowa Falls. “I want Iowa Select Farms to not only aid in the area, but also be a good corporate citizen,” Hansen tells the Iowa Falls Times Citizen. Iowa Select Farms begins supporting the Iowa Foundation for Ag Advancement by participating in the prestigious Iowa State Fair Sale of Champions, where 16 4-H and FFA exhibitors sell their champion livestock to hometown and national supporters. “Iowa Select Farms is proud to be part of building a future for Iowa’s youth in livestock production,” says Hansen. Today, the accumulated investment of Iowa Select Farms totals $217,000. During one of the worst hog markets in decades — with losses ranging from $4 to $26 a head — Hansen curtails expansion plans. A tough set of new environmental regulations for pork producers enacted by the Iowa Legislature factors into his decision. “Lenders are running away….everyone’s concerned because hog, beef and poultry production are all maxing out,” Hansen tells The Des Moines Register in November 1994. Iowa Select Farms receives the Iowa Governor’s Achievement Award, which recognizes the company as a leader in contributions to the Iowa economy through new investment, job creation and community projects.

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The story of

New Modern Concepts & Iowa Select Farms

The sow herd grows to 48,000 sows on 13 farms. The company markets 324,644 pigs and employs 134 people, as the United States becomes a net exporter of pork for the first time in decades. The Iowa Legislature enacts House File 519, the first comprehensive law regulating livestock production, and particularly pork production, in the state’s history. In exchange for new regulations and restrictions, the Iowa livestock industry secures some legal protection from frivolous nuisance lawsuits. Iowa Select Farms is actively involved in the legislative and rulemaking process related to HF 519.

1996 Iowa Select Farms ranks as the 11th largest pork producer in the United States, according to Successful Farming magazine’s Pork Powerhouse list. The sow herd grows to 58,000 sows on 15 farms and Iowa Select Farms markets 876,934 hogs. The workforce expands to 266 employees. Iowa Select Farms remodels the rest of the Midland Power building to house the growing number of production support teams, including veterinary services, production data recordkeeping and financial accounting. Iowa Select Farms becomes the first producer in the nation to establish a Lagoon Assurance Program proactively. This program begins after a major manure release is discovered at the farm of another Iowa producer. The release occurred when a field tile that was not removed or capped allowed most of the manure in the structure to drain away. Determined to ensure that Iowa Select Farms’ manure storage facilities are safe, Hansen meets with his

The sow herd grows to 80,000 on 19 sow farms. The company markets 1,357,000 hogs and grows its workforce to 421. Adventureland Family Days begin when Hansen organizes one of the first all-inclusive company outings, where employees receive a paid day off to treat their families to a full day of fun at the popular theme park in Altoona. Iowa Select Farms becomes the first Iowa pork producer to receive the National Environmental Stewardship Award in Washington, D.C. The award recognizes Iowa Select’s Kielsmeiser Sow Farm, located near Radcliffe, for exceptional commitment to the environment through innovative farm design and manure management and taking proactive measures to protect the environment. “Environmental stewardship is our responsibility,” Hansen says. The company partners with Ducks Unlimited and Pheasants Forever, aligning their efforts to protect natural resources and promote wildlife habitat. Iowa Select Farms hosts an annual fundraiser and membership drive for Ducks Unlimited, the largest such venture in Iowa, based on attendance and funds raised. This partnership continues until 2006. In October Hansen announces The President’s Club Award, the highest honor any employee can earn. This reward recognizes yearround excellence in performance. Recipients receive a gift and a trip to Las Vegas with Hansen. This program runs strong for 7 years.

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team the next morning and they develop a written protocol to deal with potential tile lines around manure storage structures. The protocol is faxed to the Iowa Department of Natural Resources that same morning and the DNR approves it later that day. The protocol calls for an 8-foot-deep by 2-foot-wide exploratory trench to be dug around the entire perimeter of the storage structure and for any tiles lines encountered to be completely removed to a safe distance and then capped with cement. The total cost of implementing the project exceeds $150,000. “We were proactive on this,” Hansen tells The Des Moines Register. “That’s our goal, to be the leader in the protection of our environment.” The Iowa DNR later adopts a version of the protocol, with lesser standards than the Iowa Select protocol, as a rule that is applied to all existing and new earthen manure storage structures in Iowa. Alarm systems and automatic shutoffs for pit flushing systems are installed in Iowa Select’s farms to detect power failures and report pit water levels, providing automated notifications to pagers operated by managers and supervisors. Farms with automatic pit flushing systems are equipped with automatic shutoffs that engage when sensors determine liquid levels in pits are too high. This avoids any release of manure. In addition to supporting the IFFAA’s Sale of Champions since 1994, Iowa Select Farms begins funding college scholarships for students majoring in agriculture at Iowa State University.

ISSUE 1 / 2014

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The story of

New Modern Concepts & Iowa Select Farms

The sow herd grows to 88,000 on 22 farms. Iowa Select Farms markets 1,387,000 hogs and has 791 employees. Iowa Select Farms and Trees Forever, partnering with Iowa State University’s Department of Forestry, the Agroecology Issues Team of the Leopold Center for Sustainable Agriculture and the USDA-ARS National Soil Tilth Laboratory — announce plans to plant more than 1,000 trees around the Arends Sow Farm in Hamilton County. The three-year project researches the long-term benefits of improved landscape aesthetics, potential energy savings, odor reduction through the planting of trees and shrubs, as well as providing natural habitat for wildlife. This project sparks similar partnerships. The Northeast Hamilton High School FFA and the Blairsburg Lions Club, for example, help Iowa Select Farms’ employees plant more than 1,000 trees and shrubs around the perimeter of the Arends Sow Farm in early 1999. Newly appointed Iowa DNR Director Jeff Vonk visits the Arends farm and talks to Hansen and his team about the environmental improvements Iowa pork producers, led by Iowa Select Farms, are making to their operations.

The second major piece of Iowa legislation regulating Iowa livestock farms (House File 2492), adds new restrictions and imposes new fees on Iowa pork producers. Iowa Select Farms actively participates in the legislative and rulemaking process. Hansen addresses all employees and describes 1998 as a year of “unprecedented growth, excellent production results and a promising future.”

The sow herd grows to 90,000 across 22 farms. Iowa Select Farms’ workforce grows to 811 employees and the company markets 1,579,000 hogs. As pork producers consolidate and/or purchase other segments of the food chain, Iowa Select Farms continues to focus its business strategy on hog production as the core business and not feed milling, grain production or processing. This commitment reinforces the strategic decision Hansen made in 1993 to pursue vertical alignment (working with key providers of grain, milling and processing) as opposed to vertical integration. The company implements a separate development system for gilts to be introduced to farrowing herds to improve the reproductive performance of the sow herd. Iowa Select Farms acquires a 10,000-sow system encompassing multiple farms in northern Iowa to expand the sow herd, and develops relationships with area farmers to grow finishing spaces in Howard and Mitchell counties. The new SelectPride™ program encourages, recognizes and rewards employees who improve the Iowa Select Farms’ image by cleaning up their farms’ exteriors. “Good site appearance can lead to happier neighbors,” Hansen says, “and that is extremely important to us.” Iowa Select Farms joins the Southfork Watershed Alliance, which is dedicated to protecting, preserving and enhancing the watershed of the South Fork River and its tributaries.

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The company introduces tight biosecurity and herd-health programs designed to control porcine reproductive and respiratory syndrome, commonly referred to as PRRS. These programs continue to be updated as scientists learn more about common diseases in pork production and research new diseases that develop in the industry. Iowa Select Farms establishes an in-house diagnostic lab to identify rapidly strains of PRRS, a virus that continues to challenge producers nationally. The lab and staff expertise cut response time for treatment and for implementing biosecurity measures. By acquiring the Trac, Inc., pork production system in northern Iowa, Iowa Select Farms adds another 7,000 sows and finishing, bringing total sow production to 95,000 by the end of the year. U.S. pork producers struggle to control PRRS and Pseudorabies (PRV), an extremely contagious virus that causes reproductive problems in breeding and finishing hogs. Iowa Select Farms introduces an aggressive testing program for PRV paired with an equally aggressive vaccination program for sows and finisher pigs. The company eradicates PRV in less than two years, thanks to hard work and close cooperation between veterinarians and production staff. Pork producers across the country celebrate when the eradication effort at the national level reaches completion in 2004.

Iowa Select Farms receives the national 2001 Environmental Stewardship Award for exceptional efforts at the Arends Sow Farm in Hamilton County, becoming the first pork producer in the United States to be recognized twice as winner of this national honor. Employee volunteers join pork producers from across the state in helping out at the Iowa Pork Tent at the Iowa State Fair. Operated by the Iowa Pork Producers Association, the Pork Tent raises funds for industry advocacy, public affairs and government relations efforts in Iowa.

Iowa Select Farms establishes its in-house system of disinfecting trucks and trailers to enhance biosecurity. The system, which includes three dryer facilities, enables the company to inactivate bacteria and viruses through washing, disinfecting and blowing hot air through trucks and trailers. After making substantial contributions to Hamilton County’s wildlife habitat, Iowa Select Farms receives the Wetland Stewardship Award from Wetlands for Iowa.

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The story of

New Modern Concepts & Iowa Select Farms

Iowa Select Farms acquires 35,000 sows and leases all related farrowing farms. The Hardin County Pork Producers Association honors the company as a Gold Member of the Association. A record 2,400-plus employees and family members attend the annual Adventureland outing. The Deb and Jeff Hansen Foundation sets up an endowment at Iowa State University to fund the Jeff Hansen/Iowa Select Farms Pork Industry Scholarship. The scholarship is awarded annually to one or two outstanding animal science student students for their dedication to the pork industry. Recipients are recognized by their peers and professors –– and more importantly by professionals around the country –– as top scholars in the swine industry. This opens doors for them to explore and pursue careers related to pork production. Jeff and Deb Hansen donate $5,600 to the Children’s Miracle Network, part of the University of Iowa’s Children’s Hospital.

The National Pork Producers Council separates from the National Pork Board, threatening funding of much-needed industry public policy and advocacy programs. Iowa Select Farms is one of the state’s first pork producers to participate in a voluntary “checkoff” to keep the efforts of the state and national associations adequately funded. In recognition for their support of the military, Iowa Select Farms and employee Brian Dutcher both receive the George W. Bush Award at a National Guard leadership conference in Baltimore, MD. The award honors Dutcher’s significant contributions to the 132nd Fighter Wing of the Air National Guard. These contributions would not have been possible without the company’s ongoing support of soldiers and their families through various initiatives. Employees observe Earth Day by joining others members of the community by picking up trash along highways in Hardin County. Iowa Select Farms has three Adopt-A-Highway road sites near Iowa Falls: west of Ackley, north of Hubbard and south of Alden. The National Pork Board’s voluntary Swine Welfare Assurance Program (SWAP) is adopted to increase training opportunities for employees while focusing efforts on promoting animal care and well-being on farms. The SWAP assessment joins existing Iowa Select employee training and certification programs such as LIFO, Coaching for Improved Performance, safety training, PQA and TQA. “I urge you to take advantage of those classes as they will make you better employees and Iowa Select Farms a better company,” Hansen says in a message to all employees.

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Faced with poor market prices and a challenging business climate early in the year, Iowa Select Farms officially retires the Anniversary Hog and the prestigious Presidents Club, which become a permanent part of the history and culture of the company. PRRS, first identified in 1987, increases in severity. Experts contend that control of the rapidly mutating virus requires filtering in addition to solid biosecurity because the virus can be transmitted 2-4 miles through the air. Iowa Select Farms becomes the first U.S. pork producer to filter its boar studs. The company also works hard to stabilize the health of the sow herd and ramps up biosecurity. Recognizing wean-to-finish technology as the future of pork production, Jeff Hansen begins remodeling nurseries into farrowing facilities. The company acquires an additional 35,000 sows, bringing the sow base to 135,000. Iowa Select Farms builds four sow farms, leases four more and purchases another sow farm for use as one of the company’s breeding stock multiplication sites. Iowa Select Farms begins a two-year period of rapid growth of finishing spaces in northern Iowa.

2005

Iowa Select Farms receives a “My Boss is a Patriot” certificate from ESGR for supporting its employees in the National Guard or Army Reserve. This nomination came from an Iowa National Guard member and employee grateful to the company for providing special consideration and benefits during his deployment, including a year’s salary to help provide for the soldier’s family. Iowa Select Farms sponsors “Pony Up for The Kids,” a fundraiser for Variety — The Children’s Charity as part of the Des Moines Polo Club’s 2005 Polo on the Green. Guests ride a mechanical bull, hit polo balls from a wooden “polo” pony and dance to live music while raising $8,000 for Variety.

Employer Support of the Guard and Reserve (ESGR), a Department of Defense office, honors Iowa Select Farms with its Seven Seals Award for meritorious leadership and initiative in supporting the men and women who serve America in the National Guard and Reserve. ESGR promotes cooperation and understanding between Reserve Component Service members and their civilian employers. The company creates the Iowa Select Farms Livestock Judging Team Coaching Endowment, helping Iowa State University revitalize its livestock judging team. The $175,000 endowment enables ISU to hire a permanent coach, who leads the team to success while providing renewed learning opportunities for student members.

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The story of

New Modern Concepts & Iowa Select Farms

Porcine Circovirus (Associated) Disease, also known as PCVD, is introduced into the U.S. swine herd, causing high mortality rates in the finishing system. Iowa Select Farms’ use of vaccines brings this disease under control by 2008. The Hansens establish the Deb and Jeff Hansen Foundation to fulfill their responsibility as leaders in the field of pork production and contributing members of the professional community. They express gratitude for the many benefits they receive from employees, vendors, producer groups and the broader community. Through the Foundation, the Hansens help Iowans in need by working with philanthropic organizations to relieve hunger, support military families and strengthen efforts to find a cure for childhood cancers. One of the Foundation’s first initiatives is partnering with the Make-A-Wish Foundation to help children diagnosed with lifethreatening medical conditions. On June 26 Iowa Select Farms employees help build a play set for Grant, a 3-year-old boy with a brain tumor who has long dreamed of having a play set in his backyard.

One of the Deb and Jeff Hansen Foundation’s first initiatives is partnering with the Make-A-Wish Foundation to assist children diagnosed with life-threatening medical conditions. In June Iowa Select Farms employees help build a play set for Grant, a 3-year-old boy with a brain tumor who has long dreamed of having a playground area in his backyard, where he can swing and slide with his siblings. The Foundation hosts its first Spring Charity Event, which raises $XX,XXX to help the Foundation achieve its mission to relieve hunger, support Iowa soldiers and military families and help find a cure for childhood cancers.

Despite the onset of the Great Recession, the Foundation’s second annual Spring Charity Event proves to be even bigger and better than the first. In just two years, the event is well on the way to becoming a treasured tradition at Iowa Select Farms. The company begins collaborating with Dr. Ken Prusa of the Iowa State University Meat Sensory Lab to review pork quality characteristics – especially bellies and loins. This collaborative study at Iowa Select’s Research Farm, leads to improvements in the quality of the company’s meat. With 2.5 percent intramuscular fat, this pork is juicier and tastier than most pork, which has only 2 percent intramuscular fat. A tornado rips through Parkersburg, Iowa, and the Deb and Jeff Hansen Foundation steps up to help with relief efforts. The storm destroys the Sinclair Elevator, one of the main feed mills for Iowa Select Farms, shutting down the operation and putting eight employees out of work. The Foundation’s donation provides food, clothing, gas and more to the mill’s employees and their families, while also laying the groundwork to rebuild the mill.

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Iowa Select Farms begins working with JBS University to educate JBS Swift sales and marketing teams about the company’s dedication to producing high-quality, low-cost pork while protecting the environment and animal well-being, and being good a neighbor in communities where the company’s employees live and work. The success of this programs leads to tours for JBS customers, agriculture groups, college students, lawmakers and leadership groups at Stockdale Farm, Sow 11, near Iowa Falls. The Deb and Jeff Hansen Foundation takes a new direction in donating pork by delivering 23,840 pounds of pork loins to the Food Bank of Iowa. This contribution provides critical support to the Food Bank, which distributes food for 2.5 million meals annually to hungry Iowans.

The company kicks off the first Iowa State Fair Family Days. Employees are treated to a day off to enjoy a day at the Fair with their families. The Deb and Jeff Hansen Foundation’s Spring Charity Event raises $195,000. The Foundation partners with the Make-A-Wish Foundation, this time to grant the wish of Jayell, who has a life-threatening kidney condition. Jayell loves playing video games. On April 27 his wish is granted as he receives a decked-out entertainment center complete with a TV, home theater system, Xbox, Playstation and many more accessories. During the holiday season, the Deb and Jeff Hansen Foundation donates 60,000 pounds of pork to the Food Bank of Iowa in the name of Iowa Gov. Terry Branstad. The Foundation also delivers donated hams and loins to local food banks and pantries, enabling Iowans struggling in the tough economy to enjoy lean, healthy meat during the holiday season.

Iowa Select Farms partners with Iowa State University for a first-in-the-nation program to research air emissions at one of the company’s swine facilities. Up to this point, research and information on ammonia and greenhouse gas emissions from swine operations—particularly from breeding, gestation and farrowing facilities in the Midwest—has been limited. The innovative program, led by Dr. Hongwei Xin, professor in ISU’s Department of Agriculture and Biosystems Engineering, will help establish baselines to later develop mitigation techniques. Iowa Select Farms remains on the leading edge of post-cervical artificial insemination (PCAI), a breeding technique that allows for boar inventory reduction, reduced time and money spent on reproduction, and overall cost savings due to the reduction in boar studs. Iowa Select Farms reaffirms its commitment to excellent animal care and production of safe, high-quality, wholesome pork by launching the SelectCare™ Animal Well-Being Program, which includes the creation of an in-house animal wellbeing department to conduct on-farm audits and employee training as well as establishing a third-party expert advisory board. Iowa Select Farms transforms a popcorn farm in Ewing, NE, into the only commercial swine system to establish in-house research trials to study multiple maternal lines, looking for good maternal traits such as soundness, teats, leg structure and longevity.

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The Cy-Hawk Program is renamed SelectPride and expands to include nursery, finishing and GDU awards. Jeff and Deb Hansen announce a $1.5 million donation to help Iowa Falls build a new Ellsworth Municipal Hospital. The state-of-the-art medical facility, scheduled to open in 2014, will offer high-quality care to residents of Iowa Falls and surrounding communities. The Hansens pledge $2 million to help construct a new agricultural learning center for students at Iowa State University. The center will help students sharpen their skills working with, caring for and learning about animals, giving the next generation of farmers the tools to operate responsibly. The Iowa Board of Regents approved ISU’s request to name the state-of-the-art facility the Jeff and Deb Hansen Agriculture Student Learning Center. Funded entirely by private gifts, the center will be built south of campus and will include an arena with seating for 1,000 people, four classrooms and a conference room. The center will provide a home for courses, labs, training programs, student clubs, judging team activities and public events. Iowa Select Farms remodels the Stockdale Farm, a show farm built in 1994 to host tour groups, into a 4,000-head working sow farm. Agricultural organizations, JBS customers, college students, lawmakers and leadership groups are able to tour the remodeled farm while learning about the operation through educational signs and portable headsets. Facilities include a board room, private showers and lodging for 12. The Deb and Jeff Hansen Foundation raises $500,000 at its annual Spring Charity Event.

National Hog Farmer magazine features Jeff Hansen as one of six “Masters of the Pork Industry” in the May 15 issue. The profile emphasizes Hansen’s entrepreneurial zeal, his attention to risk management and his enthusiasm for agriculture as an industry. The article also highlights the commitment Jeff and Deb Hansen have made to philanthropy by forming the Deb and Jeff Hansen Foundation, which makes generous donations to relieve hunger, support military families and find a cure for childhood cancers. SelectCare™ broadens to four pillars. Building on the first pillar of excellent animal care, Iowa Select adds pillars for people care, environment care and community care. All four pillars emphasize the values and practices that have been in place since Jeff and Deb Hansen founded Modern Hog Concepts and Iowa Select Farms. The Deb and Jeff Hansen Foundation receives the Iowa Governor’s Volunteer Award for outstanding commitment and service to the military. The Foundation was nominated by Det 1 Co C2/211th GSAB for the Hams for Heroes Program, which provides free holiday hams to soldiers and their families.

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In addition, the Foundation hosts its annual Spring Gala, which raises a record $635,000 and features a keynote speech by Iowa State University Head Football Coach Paul Rhoads. Deb Hansen also gives a memorable speech in which she describes the early days and the phenomenal growth of Modern Hog Concepts, now New Modern Concepts, and Iowa Select Farms. New Modern Concepts expands to serve the beef industry by offering turnkey, cattle confinement construction packages. Porcine Epidemic Diarrhea Virus (PEDV), first introduced to the United States and identified through testing at the National Veterinary Services Laboratory in April 2013, reaches one of Iowa Select’s sow farms in May 2013. Outbreaks occur at additional Iowa Select sow farms in October. PEDV is not a new virus, nor is it a regulatory/reportable disease. It poses no risk to food safety or to other animals or humans, although it produces a mortality rate as high as 100 percent among piglets. Iowa Select Farms responds by stepping up biosecurity at all sow farms and building immunity in sows at infected farms through biofeedback followed by rigorous sanitation at each site. To strengthen biosecurity efforts a new trailer wash is built for market haul trailers north of Iowa Falls. A second new trailer wash is planned for southern Iowa and is expected to be completed in early 2014.

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employees, contractors and supplier partners, we’re looking forward to a bright future!

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NEWS & NOTES Foundation helps area families in need Iowa Select Farms recently delivered 7,200 pork loins with a combined weight of 32,400 pounds to nearly 60 community organizations, food shelves, pantries and food banks in rural communities where Iowa Select Farms has employees and producers. These organizations will then distribute the free pork to local families they serve. The pork loins, with a combined value of $75,492, will provide 172,800 servings. The fresh pork loins were purchased from JBS Swift in Marshalltown, Iowa, and delivered by Iowa Select Farms employees to rural communities over the course of ten days. Pantries are identified through the help of employees who live and work in the targeted regions. Pork loins were delivered to pantries in the following communities: Mason City, Charles City, Nashua, New Hampton, Cresco, LeRoy, Minn, Lyle, Minn, Osage, Riceville, Hampton, Dumont, Allison, Clarksville, New Hartford, Parkersburg, Grundy Center, Belmond, Webster City , Eagle Grove, Fort Dodge, Humboldt, Pocahontas, Emmetsburg, Estherville, Dows, Chariton, Osceola, Leon, Lamoni, Mount Ayr, Bedford, Corning, Lenox, Clearfield, Creston, Afton, Lorimor, Iowa Falls and Alden.

Manager In Training Program helps develop employees We believe in our employees and their development, especially growing our leaders from within. In fact, over 75 percent of managers at Iowa Select Farms began as technicians and worked hard to move upward, advance their careers and take on bigger challenges. Iowa Select Farms’ Manager In Training (MIT) Program helps give technicians and department heads a “fast track” to becoming a successful farm manager. This 16-month program includes gaining hands-on experience in all phases of pork production while being coached by some of our best farm managers in our system. Twice a year employees can internally apply for one of the trainee positions within the company. After the application is received each candidate completes a technical test and interviews for one of the trainee spots available. Trainees graduate from the MIT program after demonstrating proficiency and maintaining company targets in all production areas including breeding, farrowing, nursery and finishing, as well as successfully manage a farm for the final three months of the program. In addition, the trainee will also be introduced to support departments, such as nutrient management, health services, transportation, production recordkeeping and human resources. For more information about the program ask your supervisor or contact the office at 641-648-4479.

THANK YOU to the following suppliers for your sponsorship of the

2014 Iowa Select Farms Production Management Meeting dinner!

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NEWS & NOTES Fun for all ages Mark your calendar — the Iowa Select Farms’ Adventureland Family Outing is planned for Friday, June 20 and Friday, June 27. An all-company lunch is included in the outing. The all-day pass at Adventureland Amusement Park also includes AdventureBay Water Park which includes 20 waterslides, Iowa’s longest Lazy River, a swimming pool with a swim up bar, kids splash pad, food and retail stands, a sand beach, sun deck and more! In the 2012 summer season a 25,000 square foot wave pool and a kids activity pool were completed, along with a swim up bar just for little ones. Iowa Select Farms has treated employees and their families to this outing since 1997. Watch for a mailing to your home and reminders in the Weekly Update.

Amazingly amusing The Iowa Select Farms’ Iowa State Fair Family Outing is set for Friday August 8 and Friday, August 15. Iowa Select Farms offers all employee families and contractors an outing at the Iowa State Fair. The state fair celebrates agriculture and livestock and embraces a multitude of delicious food items on a stick, including the most popular – Pork-Chop-On-A-Stick. Top it off with rides, attractions, games, shows and concerts, the Iowa State Fair is something you don’t want to miss. Employees and contractors — watch for more information in your mail and reminders in the Weekly Update.

Refer a friend, get a great bonus! Don’t forget! Employees are eligible to receive $1,560 for successfully referring a friend or family member to Iowa Select Farms. All farms should have referral cards close at hand — simply complete the card, drop in the mail and a Human Resources representative will reach out to each of your referrals and invite them to apply. Please read the guidelines closely to understand the monthly bonus payouts and to ensure you get credit!

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SelectCare™ PO Box 400 Iowa Falls, IA 50126

A HELPING HAND FOR KIDS! Families struggling with food insecurity found some relief with a new program –– Ham Sandwiches for Kids™ –– made possible by the Deb and Jeff Hansen Foundation and Iowa Select Farms. The program will provided $5 coupons four times a year for sliced or shaved ham to Iowa families who have children participating in the Food Bank of Iowa’s BackPack Program™. The BackPack Program™ provides child-friendly, easy-to-prepare nonperishable food items on weekends and during school breaks when students do not have access to the federal free and reduced price meal program. The BackPack Program™ currently serves more than 3,000 children each week at 85 sites in the following Iowa counties— Adair, Boone, Clarke, Dallas, Decatur, Guthrie, Hamilton, Hardin, Jasper, Lucas, Madison, Marion, Polk, Ringgold, Story and Taylor. “I appreciate the continued support and generosity of the Deb and Jeff Hansen Foundation,” says Carey Miller, executive director of the Food Bank of Iowa. “With this partnership, more children and their families will have access to a nutritious and protein-rich product that they desperately need.”

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