September 2014 by Mid Kansas Cooperative Association (MKC)

TABLE OF CONTENTS September 2014 “Like” us on Facebook: MidKansasCooperative

FROM THE FIELD Merger Update .......................................................................................4

Darin Marti, vice president of eastern operations for MKC, provides an update on the merger with Farmers Cooperative Association of Manhattan.

Read our Blog: www.midkscoop.blogspot.com

Renewing our Infrastructure.....................................................................5

Watch us on YouTube: www.youtube.com/midkscoop Follow us on Instagram: www.instagram.com/midkscoop

As MKC has continued to focus on renewing infrastructure this past year, the cooperative has invested more than $16 million dollars across its trade territory.

Increased Investment Opportunities Open to Members ................................6 The board of directors recently voted to increase the amount of the investment opportunity for patrons of MKC. The program is currently open to MKC stockholders.

Fuel Sites to Undergo Upgrades................................................................7

Editorial Staff Kerry Watson Director of Communications Nichole Gouldie Communications Specialist

Equipment and software upgrades will result in a temporary shut down for a number of MKC fuel sites. As a result of the upgrades, new MKC Fuel 24 cards will be issued to all proprietary cardholders.

FEATURE It’s More Than Just a Telephone ...............................................................8

Management Dave Christiansen President and CEO Danny Posch Senior Vice President and CFO Dave Spears Senior Vice President and CMO Erik Lange Vice President of Southern Area Operations Steve Peterson Vice President of Northern Area Operations Darin Marti Vice President of Eastern Area Operations Dave Sell Director of Energy Operations Kerry Watson Director of Communications Brett Myers Director of Human Resources and Development

As technology continues to change how business is done, MKC launches a customer notification system, the first of its kind, bringing a new level of communication to its customers.

EDUCATION Financial Convenience Through Your Co-op ...............................................10 New financing options are available for the 2015 growing season.

Finding the Common Ground ...................................................................11 Every day, consumers hear conflicting messages about American agriculture and wonder where their food is produced. A group of volunteer farm women, known as CommonGround Kansas, are doing their part to help tell the story of how U.S. farmers and families are producing the safest, healthiest and most affordable food choices in the world.

IN THE COMMUNITY MKC P.O. Box D Moundridge, KS 67107 620-345-6328 www.mkcoop.com Our Vision: MKC will be a highly valued, customer–focused business engaged in profitable relationships with high business ethics and employee satisfaction.

Farm Safety for the Next Generation ........................................................12 Statistics indicate 38 kids are injured daily in an agricultural related accident. To help keep youth safe and reduce accidents, the McPherson County Farm Bureau and K-State Research and Extension annually host a farm safety day camp. MKC has helped sponsor this event for the past seven years.

Participants Sought for New Leader Forum................................................13 MKC is seeking young producers to participate in the CHS New Leader Forum where they will examine in-depth issues and challenges facing cooperatives, agriculture and rural America as well as learn ways to build their leadership skills.

STRAIGHT TALK

PRESIDENT’S COLUMN By Dave Christiansen

Enhancing the Overall Customer Experience How to enhance the overall customer experience is one initiative that continues to rise to the top in our strategic planning sessions now held twice a year. Initially, the challenge with an initiative like this was creating a clear definition that would be actionable. First it meant we needed to make certain our company was easy for our customers to do business with. Secondly, when the customer did do business with us, they would be left with the feeling they selected the right partner. One of the challenges to executing an initiative like this is we have to be willing to challenge virtually everything we are doing today, regardless of how well we think we are doing. We must go to our customers and ask the terrifying question, “How well are we doing?” Only then, and only if we really listen, can we get the information that will lead us to start making the changes customers say will set us apart from everyone else who is wanting their business. I would like to take this opportunity to once again say “thank you” to our customers. Many of you have shared information with us and, by listening, our employees have continued to raise the bar for our industry. The following are a few examples of what we do today that came about simply by listening to you. When I think about making it easier to do business with MKC, I first think about our efforts to bring the business to you rather than you coming to us. Today we have over 40 knowledgeable people in the country meeting with you at your farm gate. This number doesn’t include the people who play a vital support role in delivering or applying the products that make your jobs easier. These are only the people delivering the expertise necessary to help you make decisions to maximize your profit on the farm. We certainly have experts strategically placed at our many locations but for those producers who don’t have time to visit our locations, we can deliver the expertise to you. One area we have significant expertise is in forward contracting grain. (Just the mention of it can be intimidating!) Over the years we’ve continued to add contracts allowing our customers to fit them to their specific strategies and risk tolerance level. Today we offer 28 different contracts specifically designed to make it easy to meet your needs and offer you the flexibility you are looking for. We offer the same opportunities in our agronomy and energy departments. Forward contracting all or most of your

inputs at the same time is well advised when your intent is to manage risk and lock in profits. These programs are exactly what led us to having a very robust input financing program with an interest rate currently at 2.45 percent. By having access to credit faculties that allow you to contract inputs 12 months out is beneficial for many reasons. While the primary benefit is the ease of doing business with MKC, the input finance program also allows you to take advantage of opportunities that come available throughout the year. Another example of ease of doing business with MKC is our customer online portal, providing you access to all of your grain or input activity 24 hours a day. You can search for specific grain tickets, do proof of yields and investigate current balances. Online offers continue to gain popularity with grain customers who are looking to capture more profit when available. You can export data from your customer portal to an Excel spreadsheet to create an analysis of your farm’s inputs for the past year. Direct deposits of grain settlements and the ability to pay your bill online are other examples of what we offer to make it easy to do business with us. These examples are a direct result of listening to our customers and responding to their needs. All of our facility and equipment investments made over the past number of years were driven by our desire to improve the speed of our service and again, improve your customer experience. These investments include dual scales and increased leg speed, reducing your wait time at our facilities and matching the speed of your harvesting equipment. The larger application and delivery equipment utilizing precision technology allow us to get jobs done on a timelier basis and with improved accuracy. Our investment in seed treatment plants has proven to gain much improved seedling vigor to get your crops off to the right start. Our mapping and precision ag services provide you the guidance to place the right amount of the right products, in exactly the right spot to minimize your input usage and expense while maximizing your production per acre. The utilization of technology to improve the overall customer experience continues to be a driver for us. It started with the customer portal and led to text messages with grain market updates three times a day. Again, by listening to our customers we recently introduced a service that notifies you when our application rig driver finishes your job and leaves your field. Many customers had stated how nice Continued on page 14

FROM THE FIELD

Merger Update by Nichole Gouldie, Communications Specialist

In December 2013, MKC and Farmers Cooperative Association of Manhattan announced merger plans. After several months of planning and preparation, the merger was completed on June 1, 2014. “Throughout the merger process, all employees have demonstrated great dedication and have remained focused on exceeding the needs of the customers we serve,” says Darin Marti, vice president of eastern operations for MKC. “We were eager to join together to build a stronger company.” Marti commented the merger will improve the utilization of our facilities and equipment. “We are in a better position for growth and have increased access to capital,” he says. “These advantages will strengthen our leadership position in the marketplace and help ensure the long-term success of our co-op.”

Appointed Directors

Hal Mayer

Allan Wegner

Appointed to the MKC Board of Directors were Hal Mayer and Allan Wegner. Hal Mayer and his wife, Jill, operate a stocker operation near Alta Vista and raise corn, wheat and sorghum silage in Wabaunsee, Morris and Geary counties. Their primary MKC location is Alta Vista. Prior to merging with MKC, Mayer served on the board of directors for Farmers Cooperative Association for more than 20 years. Mayer believes in the cooperative system and the benefits it brings to patrons. While competition is stiff, he believes the future of the cooperative looks bright. In order to be successful, he says MKC must continue to grow to meet the needs of the patrons. Allan Wegner and his wife, Melissa, operate a dryland corn and soybean operation near Onaga. Wegner’s father farms with them. They also have a cow-calf operation. Their

main MKC location is Onaga. Prior to merging with MKC, Wegner served on the board of directors for Farmers Cooperative Association for 12 years and was the secretary for the past 10 years. He believes the cooperative system is vital for the producer to succeed. While the producer strives to remain independent, the co-op offers access to products, programs and markets that would otherwise be unavailable to him or her. He believes MKC must continue to grow and adapt to best serve our producers' needs as they evolve. Additionally, it’s important for MKC to be a financially stable cooperative with a progressive board and management team.

Construction Update “The members in the new MKC area have already benefited from the merger as new facilities and equipment are being put in place,” Marti says. Marti added the sharing of equipment and labor has already been of a benefit to members all across the MKC territory. Prior to merging with MKC, Farmers Cooperative Association broke ground on a grain storage project. The 425,000 bushel steel bin is a standalone structure on the same property as the main elevator. The Manhattan facility will also receive minor upgrades including speakers and an outbound printer for the scale. These improvements will be completed by the 2014 fall harvest. The MKC Board of Directors recently approved the addition of storage at Alta Vista due to inadequate space. Construction of a 490,000 bushel bunker started in August and is expected to be in use for the fall harvest. Through the merger, MKC has 42 locations in 14 counties, and serves more than 9,000 members. “By combining efforts we are better equipped to keep up with our customers’ growing needs and expectations,” Marti says. “Through this journey, better together is evident.”

The addition of a 490,000 bushel bunker in Alta Vista is expected to be ready by fall harvest.

FROM THE FIELD

Renewing our Infrastructure By Nichole Gouldie, Communications Specialist

In August 2013, MKC broke ground on the Canton Rail Terminal, a state-ofthe-art high speed rail loader. The main elevator holds 1.2 million bushels of upright storage in a concrete slip form structure that was poured from ground level to a height of 131’ in less than seven days. The Canton site has two 1.2 million bushel ground bunkers. An overpass was constructed to allow trucks to still enter while a train is onsite. The new office features dual scales with two lanes of inbound traffic. RFID card readers will be issued to A LeMar storage system constructed last spring added 1.2 million bushels storage space at Groveland. customers making the experience as quick and simple as possible. Three Recognizing the need for new locawith a capacity of 307,000 bushels. The covered dump pits will allow grain to tions and making upgrades to current new office and dual scale layout on the be transferred in any kind of weather. facilities allows MKC to keep pace with property allows plenty of staging for Although the elevator is still under the growing needs of the producer. As trucks. Benton was also open for the construction, the facility is open for fall MKC has continued to focus on renew2014 wheat harvest. harvest and using the ground bunkers ing infrastructure this past year, the In the spring of 2013, a second scale for storage. cooperative has invested more than was added at Moundridge and Walton, Ground was broken on a 425,000 $16 million dollars across its trade terimproving traffic flow and reducing wait bushel steel bin in Manhattan in May. ritory. time during peak harvest times. The facility will also receive upgrades Jon Brown, director of facility manGroveland received a conveyor including speakers agement for MKC, has overseen each upgrade in the winter and an outbound of the projects. “Meeting our cusof 2013. This upgrade printer scale by fall tomers’ needs and improving the cusallows the facility to harvest. tomer experience has been the driver move grain anywhere In Alta Vista, conbehind these projects,” Brown says. through the facility at struction began on a MKC made improvements in the same speed as 490,000 bushel Talmage to the existing elevator in the the fastest leg. bunker in August. fall of 2013 and added a new Ground was also broSince February McPherson Concrete jump-form storken on the 1.2 million 2013, the addition of age tank. The most recent project com- bushel LeMar ground 9.8 million bushels of pleted at Talmage was a new office and storage system. The storage has brought second scale and grain probe. LeMar storage system MKC’s total storage In November of 2013, MKC broke was first used to store capacity to nearly 39 ground on the new 2.2 million bushel milo in the fall of million bushels. grain facility in Rice County. Located 2013. “Continued five miles south of Lyons, this project In the summer of investments in our consists of 1.2 million bushels of 2013, Marquette The new facility constructed in Rice County opened facilities allow us to upright storage and a 1 million bushel added a third ground prior to the 2014 wheat harvest. keep pace with the ground storage system. The Rice bunker. With two growing needs of our customers,” said County facility was open for the 2014 bunkers already in place, the three Brown. “By building state-of-the-art wheat harvest. bunkers are filled with a high speed facilities, MKC can provide not only Ground was broken on a new 15,000 bushel per hour drive over conspeed and space, but safety for our steel bin facility in Butler County in veyor. This is the third ground bunker customers, employees and the enviDecember 2013. Located near Benton, pad constructed in Marquette in the ronment.” this project consists of three bins each past two and a half years.

FROM THE FIELD

Members Re-elect Incumbents at 49th Annual Stockholders’ Meeting by Nichole Gouldie, Communications Specialist

During the 49th annual MKC Stockholders’ Meeting, nearly 700 members, guest and employees reflected on how MKC has found value in collaboration in virtually all areas of the business. The meeting took place on July 24 at the Salina Bicentennial Center. Danny Posch, MKC chief financial officer, reported the cooperative ended the fiscal year with $9.2 million in earnings, the fourth best year on record. MKC allocated $6.41 million in patronage dividends to the members and nearly $27 million over the past four years. The FY2014 patronage allocation marks the third highest level of patronage allocated back to the members of the cooperative. MKC Board Chairmen, CJ Blew, spoke on the theme of this year’s annual meeting, “Better Together.” “Better together is at the core of what a co-op is,” Blew said. “Generations before me had the foresight to know farmers would be better together.” Dave Christiansen, MKC president and CEO, reflected on the growth of the co-op this past year and through everyone working together, the producer and the cooperative will be

more successful in this next year. “Finding ways to work with others, and most importantly, those who share our core values drives many of our business strategies today. Just as it did when our co-op began,” Christiansen said. During the business meeting, three incumbents were elected to serve on the board of directors for MKC. Those re-elected were Duane Johnson, District 1; CJ Blew, District 2; and Keith Becker, At-large. No new business was

Montana logger and rural lifestyle advocate Bruce Vincent spoke during the 49th annual meeting.

brought before the membership. Third-generation logger Bruce Vincent from Libby, Montana was the evening’s speaker with an animated presentation that extolled the pure joy folks get from living in rural America. He shared how environmental activists have cut into his livelihood and way of life with different issues. Through his experience, Vincent encouraged the crowd to be proactive in defending agriculture. He urged those in agriculture to remind America who it is that feeds the world and who cares about the environment. “Rural people and rural industries need to stand up together for their way of life and get politically involved,” Vincent said. Vincent, whose annual meeting address resulted in a standing ovation, said the rules are made by those who show up. “Add a (budget) line item for activism just like we do for equipment maintenance, and get involved,” he said. Looking over the producers in the audience, he concluded, “America wants a new movement and I think I’m looking at it at the MKC Annual Meeting.”

Increased Investment Opportunities Open to Members by Nichole Gouldie, Communications Specialist

Based on the success of the MKC investment program, the board of directors has voted to increase the amount of the investment opportunity for patrons of MKC. The program is currently open for investments. “The financial strength and stability of MKC remains extremely strong and we are continually looking for ways to position ourselves well into the future,” said Danny Posch, MKC chief financial officer. “We believe the

investment program truly provides a win-win opportunity for investors and MKC alike. By working together, we will continue to ensure we are in a position to take advantage of opportunities in the marketplace together with lessening the reliance on external funding sources to meet the working capital needs of the cooperative.” There are two separate types of programs offered. The Certificate of Indebtedness program is a certificate

written for a specified period of time. This program offers a 3.5 percent fixed interest rate on a three-year note, 4.0 percent fixed interest rate on a fouryear note and a 4.5 percent rate on a five-year note. The Demand Note program works much like a standard short-term investment account. Money can be transferred in and out of the account in a certificate that will each earn a rate Continued on page 14

FROM THE FIELD

Fuel Sites to Undergo Upgrades New Fuel 24 Cards Issued as a Result By Kerry Watson, Director of Communications

A software upgrade to a number of MKC fuel sites that started the first week of September will add increased security systems to reduce identity theft and fraud for customers using a credit, debit or MKC Fuel 24 card. In addition to the software upgrade, fuel pump equipment at several sites will be replaced with state-of-the-art pumps allowing customers to now pay at the pump rather than at a card reader pedestal. According to Dave Sell, director of energy operations for MKC, fuel sites will be temporarily out of service during the upgrades. “Depending on the type of upgrade to be made, the changes may take as few as three days or as much as two weeks at the various

locations,” states Sell. “There will be some inconvenience caused by the maintenance, but we’ll do our very best to keep it at a minimum.” The upgrades to be completed in September include the fuel sites in Galva, Walton, McPherson and Moundridge. Starting in October, upgrades will be completed at Inman, Lindsborg, Goessel and Manhattan Ampride. Sell noted all other fuel sites will be scheduled for upgrades at a later date. As a result of the upgrades, new proprietary (MKC Fuel 24) cards will be issued to all account holders. The new cards will be black in color and will work at any MKC fuel site. “The gold cards will be deactivated once the new

cards have been issued,” Sell says. “We encourage customers to destroy the old cards once they have verified their new cards.” Customers who have questions regarding their MKC Fuel 24 card should contact Tindy Graber at 620-345-4111 or Tony Hieger at 785-776-9467.

Legislative Staff Members Spend Day at MKC By Kerry Watson, Director of Communications

In its inaugural Legislative Staff Day in mid-August, MKC hosted five staff members from Kansas House and Senate offices providing a firsthand look at the breadth of services provided by MKC. The full-day event included discussions with MKC employees and a tour of facilities at Groveland and Canton. “We know it’s critically important to host congressional staff so they can see up close the Back row (left to right): Ted Schultz with TMA, Devin Schierling with TMA, facilities and services we proJohn Sachse with Senator Moran, Judd Gardner with Senator Moran, vide to our members and their Steven Howe with Congressman Huelskamp and Dave Spears with MKC. constituents,” said Dave Spears, Front row (left to right): Kerry Watson with MKC, Rachel DeGarmo with Congressman Pompeo, Mel Thompson with Senator Roberts and Danny chief marketing officer for MKC. Posch with MKC. “Staff members are often the first point of contact for the conMel Thompson, state agriculture stituents of their members of Congress. representative for Senator Pat Roberts, This visit was a great opportunity for the staff to gain a better understanding noted having contacts in the industry is invaluable. “MKC is a class act. You’ve of MKC and the cooperative system.”

succeeded in the peaks and valleys,” said Thompson. “Thanks for being a partner to serve your members and our constituents and representing agriculture.” Staff members attending the event included John Sachse and Judd Gardner with Senator Jerry Moran, Steven Howe with Congressman Tim Huelskamp, Rachel DeGarmo with Congressman Mike Pompeo and Mel Thompson with Senator Pat Roberts. During the site tours, congressional staff gained a better understanding of how technology is used in the grain and agronomy industry.

MKC spray rig operators use tablet devices right in the field to send an email or text message notifying customers their custom application order was complete.

It’s More Than Just a Telephone Technology Continues to Change How We Do Business By Nichole Gouldie, Communications Specialist

What quacks like a duck and tells you when MKC is leaving your field? That would be an MKC customer’s cell phone. While your phone may not quack like a duck, you can receive notification within minutes of when MKC completes your customer application order. Starting in August, MKC launched the customer notification system. The first of its kind, this system brings a new level of communication to MKC customers. Using an electronic tabloid in spray rigs, rig drivers use technology to notify customers via email or text message letting the producer know their field has been sprayed. Recently, Ryan Patrick received a text message from MKC notifying him his milo field scheduled to be sprayed was complete. Patrick, who operates a diversified crop and cow-calf operation near Lindsborg, recalls working in their shop fixing equipment that was down when he received the text message.

“It’s convenient to receive these notifications,” Patrick says. “Especially when you aren’t around the day your field is being sprayed, you know the job got done. It is especially beneficial when I am trying to plan other jobs that need done on the farm instead of waiting and wondering exactly when my field got sprayed.” According to Shane Eck, senior location manager for MKC, more than 500 producers are currently signed-up for the electronic notification. Eck commented the system eliminates the producer having the unknown of their spray order.

McPherson County producer Larry Dahlsten appreciates of benefits,” Dahlsten says. Dahlsten tries to keep up with the promptness of the notification system. “I don’t have to the technology the younger generation uses and he wonder if my spraying got done today or tomorrow, or take laughed as he admitted it is difficult at times. Besides the the time to drive out to the field to look for tracks,” he says. application notification system through MKC, he uses preciFor Dahlsten and Patrick, a sion ag and enjoys staying up-topartner and source of expertise in date through MKC’s Facebook “The application notification technology is MKC. “The applicapage. system is one more way MKC tion notification system is one “Most producers, regardless of is providing efficiencies and more way MKC is providing effisize, see the benefit in using techciencies and expertise using technology,” Eck added. “The customer expertise using technology nology for its’ customers,” Eck notification system is just one for its’ customers” says. more way MKC is enhancing the Shane Eck Patrick is the first to admit customer service experience for Senior Location technology isn’t at the top of his list of our customers.” Manager for MKC priorities. “I still have a flip phone,” The equipment has not yet Patrick chuckled. “I leave being up-to-date been installed at MKC’s northern in the area of technology up to the co-op.” locations including Alta Vista, Onaga, Westmoreland and Today, the cell phone is more than just a telephone for Manhattan. Customers in these areas can plan to see this Dahlsten. He uses it for markets, weather, communicating technology offered from MKC in the near future. To sign-up via text message and much more. for notifications, contact your field marketer or nearest “It isn’t always easy to learn [technology] but it has a lot MKC location.

Ryan Patrick learns his milo field was sprayed after receiving a text message from MKC’s application notification system while prepping his swather for the day.

EDUCATION

Financial Convenience Through Your Co-op MKC Announces New Financing Options for 2015 Growing Season by Nichole Gouldie, Communications Specialist

When it comes to your farming operation, every seed, every ounce, every acre and every dollar counts. Now there is more help to maximize your profits with two new financing options through MKC and the Cooperative Finance Association, Inc. (CFA). “We are proud to offer growers this competitive and convenient financing program to help maximize their potential on the farm,” says Dave Spears, chief marketing officer for MKC. “The program compliments our three-legged stool approach to help producers take control of their crop production risks.” Partnering with CFA, MKC customers who lock in their input needs early can get zero percent interest fixed on fertilizer, seed and chemicals. Each of these input products has a specific promotional period. “If we can take care of the producers input needs and arrange the financing for payment in the same process, that makes sense,” Spears says.

MKC customers who lock in their input needs early can get zero percent interest fixed on fertilizer to October 31, 2014, seed to December 31, 2014 and chemical to March 31, 2015. After the promotional period end dates, the interest rate will move up to a discounted rate of 2.45% variable for customers who apply for an Input Advantage loan with a February 15, 2016 maturity date. The Input Advantage Loan is also the most comprehensive for the customers input needs, and can provide up to $2 million in financing. Spears added MKC is also offering a CFA Express Credit Loan. The Express Credit Loans offer financing up to $100,000 which can be used to lock in your fertilizer, chemical and seed needs. MKC is also offering zero percent interest fixed to October 31, 2014 on fertilizer only. After the zero percent promotional end date, the interest rate will move up to a discounted rate of 3.45% variable to maturity of the

loan. “The Express Credit Loan application form is one page and is a quick quantification process,” Spears says. “This streamlined application and approval process allows growers to put in place $100,000 of financing with a December 15, 2015 maturity date,” Spears says. “We don’t want financing to hold producers back from making those decisions early. This loan provides an even more simple and flexible financing option for growers.” CFA is a regional agricultural financial services cooperative that is based in Kansas City, MO and has been providing reliable financial products and services to the agriculture sector for over 70 years. CFA has recognized MKC as its number one input financing partner four years running. For more details about financing your inputs or information about inputs, growers should contact their nearest MKC location or field marketer.

EDUCATION

Finding the Common Ground by Nichole Gouldie, Communications Specialist

There are fields to be plowed and cattle to be moved. There are kids to pick up from school and meals to be cooked. There are no fixed hours and never enough time in the day on the farm or ranch. But on top of that many men and women involved in agriculture take the time to defend the industry that is their livelihood.

we also have information based on science and research to back our stories.” Baldwin added CommonGround Kansas speaks at meetings, visits with the media and interacts directly with consumers at an array of events across the state. “Many women, including myself, blog and use Facebook, Twitter and other social media outlets to tell our story,” she says. She says the group speaks often and answers many questions on the topics of factory farms, organic verses conventional production, GMOs, hormones and animal welfare. In July, Kansas volunteers Baldwin and Katie Sawyer opened up their McPherson county farms and ranches for the first-ever CommonGround Kansas Farm Tour. Guests including bloggers, media, dietitians and consumers saw how their families raise crops and cattle. Guests also visited MKC’s Groveland facility learning about grain handling and marketing, and agronomy services. Photo by CommonGround Kansas. “Educating anyone and everyMKC Precision Ag Specialist Ross Benisch explains MKC’s agronomy services at Groveland with CommonGround Kansas Farm tour one about food production is guests. important to MKC,” states Kerry Watson, director of communications for MKC. As stewards Every day, consumers hear conflicting messages about of the land, we want consumers to understand the products American agriculture and wonder where their food is proand processes farmers and ranchers, and us as a cooperaduced. This is why volunteers like Kim Baldwin, a teacher, tive use are safe. We appreciate the efforts by the memfarm wife and mother, serves as the connection to conbers of CommonGround Kansas and others who help edusumers about agriculture. cate consumers.” “Farmers and ranchers are producing safe, affordable Baldwin says the most rewarding part of volunteering and nutritious food,” Baldwin says. “I want to help conwith CommonGround Kansas is when consumers have a sumers make their food decisions not based on fear but “light bulb moment”. “In that light bulb moment, those facts.” consumers are confident about what they are feeding their CommonGround, a partnership between the United Soybean Board and the National Corn Growers Association, families.” she says. At the end of the day, Baldwin and all CommonGround is a national program aimed at creating a unified voice for volunteers want consumers to know that farmers and ranchmodern agriculture. This group was formed in an effort to ers are not only working hard to produce their food but tell the story of how U.S. farmers and families are producthey are doing it in a way that provides a safe, wholesome ing the safest, healthiest and most affordable food choices and affordable product for their families to enjoy at each in the world. and every meal. “We’re a group of volunteer farm women and we are all about starting a conversation between the women who buy food and the women who grow food,” Baldwin says. “It is a conversation based on personal experience as farmers but

IN THE COMMUNITY

Investing in the Future MKC Awards 2014 Scholarship Recipients By Nichole Gouldie, Communications Specialist

MKC is proud to award the recipients of the 2014 Scholarship Program. Ten area high school seniors and eight college students were selected to receive a $1,000 scholarship for the 2014-2015 academic year. More than 100 high school students and nearly 40 college students submitted applications. “The number of applications made the selection process difficult,” said Nichole Gouldie, communications specialist for MKC. “By helping our local students pursue their educational goals, we are investing in their future, as well as the future of our local communities.” Since 2008, a total of $45,000 has been awarded through MKC’s scholarship program. This year’s scholarship

program was the first year to include a college-level age group. In addition, the dollar amount to high school seniors was increased from $500 to $1,000. Scholarship recipients were selected based on academic achievements, honors, leadership, and school and community activities. Along with the application, students were asked to submit an essay addressing the value of the cooperative system. High school students awarded scholarships are: Jacob Dailey, CantonGalva High School; Justin Schmutz, EllSaline High School; Reece Hiebert, Goessel High School; Kristen Knackstedt, Inman High School; Trevor Smyres, Little River High School; Nicholas Meyer, Marion High School;

Greg Schlickau, Pretty Prairie High School; Anneliese Reinert, Smoky Valley High School; Taylor Green, Southeast of Saline High School; and Savannah Sherwood, Southeast of Saline High School. College students awarded scholarships are: Nick Wineinger, Kansas State University; Austin Hiebert, McPherson College; Luke Snider, Kansas State University; Kristine Larson, Kansas State University; Spencer Yenni, Hutchinson Community College; Melissa Woeppel, Bethany College; McKayla Brubaker, Kansas State University; and Ashley Murrell, Washburn University.

Farm Safety for the Next Generation By Melissa Woeppel, Communications Intern

There are so many adventures to be had when you’re a kid on the farm. But those adventures can come with risks. According to Farm Safety for Just Kids, “one child dies every three days on a farm. Every day 38 kids are injured in an agricultural related accident.” In 2012, over 7,700 kids were injured on a farm. To help keep youth safe and reduce these statistics, the McPherson County Farm Bureau and K-State Research and Extension McPherson County joined forces more than 15 years ago to host a farm safety day camp. The annual program raises awareness of safety hazards for youth ages 8 to 11 to learn more about rural dangers, specifically on the farm. MKC has helped sponsor this event for the past seven years. While many youth are taught safe farm practices at home, farm safety programing reinforces the importance of safety. “As producers, we know we work in a hazardous environment. Even

though we try and teach our youth to be safe, hearing it again from another person in their community may be what is needed for the message to sink in and help keep them safe,” said Jonie James, agriculture and natural resources agent for McPherson County. Eighty-three youth attended the 2014 day camp on June 12 at the McPherson County Fairgrounds. The program began with an accident demonstration and mock helicopter rescue. Following the demonstration, participants were able to look at the helicopter up close, which was the highlight of the camp for many. Campers do not have to be children who live on a farm to benefit from the

educational sessions, said James. The seven, hands-on safety sessions included lessons on harvest, pesticides, electrical, PTOs and hydraulics, ATV and utility vehicles, fire, emergency and lawn equipment. “Promoting safe practices for all ages on the farm is important to us,” states Kerry Watson, director of communications for MKC. “The McPherson County Day Camp is just one example of the programs we support. Most recently we teamed up with Nationwide Agribusiness and the National Education Center for Agricultural Safety to provide a grain bin safety program for producers, employees, and first responders.”

IN THE COMMUNITY

Committed to 4-H Leadership Development By Melissa Woeppel, Communications Intern

MKC has provided $17,750 to area 4-H counties to support leadership programs taught to the county’s young people. This year marks the ninth consecutive year for donations made to the 4-H programs within MKC’s trade territory. “We believe the leadership programs available through 4-H are outstanding and do an excellent job of helping develop the leadership skills of today’s youth,” said Kerry Watson, MKC director of communications. “It

is exciting to think those same youth will be the future leaders of our communities.” Funds totaling more than $72,000 have been donated since 2006. Land O’ Lakes, Inc. Foundation matched the contributions made by MKC. In 2014, MKC made donations to the following counties: Reno, McPherson, Harvey, Saline, Butler, Marion, Dickinson, Ottawa, Clay, Rice, Riley, Pottawatomie, Wabaunsee, Lyons and Shawnee.

Caption copy line here. Harvey County 4-H was one of 15 organizations to benefit from MKC’s donation.

Participants Sought for New Leader Forum By Kerry Watson, Director of Communications

MKC is entering its tenth year of sponsoring participants to attend the New Leader Forum, held in conjunction with the CHS Annual Meeting. This year’s event will be held December 3-5 in Minneapolis, Minnesota. Over the course of the forum, participants examine in-depth issues and challenges facing cooperatives, agricultural and rural America, as well as learn ways to build their leadership skills to benefit their cooperatives and communities. Sessions feature top-notch professional speakers and agribusiness experts. The conference is geared towards individuals and/or couples, ages 25 to 45 years. Since 2004, MKC has sponsored 89

participants. Ben and Tina Schrag of Canton attended the event in 2013. “For me it was a great educational experience,” said Ben. “I learned how MKC fits in with larger cooperatives’ grain distribution, not only in the United States, but internationally as well.” Schrag also commented on the value of networking with other MKC customers who attended the event. “I didn’t know them before attending the Forum and still keep in touch with them today.” Anyone interested in being considered for participation in the 2014 New Leader Forum should contact their field marketer or Nichole Gouldie at 620-345-4119.

Business with Yourself Just Makes Sense

President’s Column

By Devin Schierling, TMA Grain Marketing Manager

(continued from page 3)

Nearly 10 years ago the member cooperatives of TMA embarked on a journey to rejuvenate their grain handling assets. At that point in time, we could see our customers’ ability to harvest and deliver grain was increasing rapidly and would soon out pace our elevators unloading capacities. This realization has focused TMA’s quest to provide an extraordinary customer experience and remain relevant for the next generation. The rate of change each of us experience on a daily basis is astonishing. When we started this journey, the average load of grain delivered to the elevator was around 325 bushels. Today it has more than doubled to 775 bushels per load. Examples similar to this type of growth can be found in every aspect of production agriculture and puts an extreme strain on the infrastructures of the entire industry, including your cooperative’s grain elevators. This strain leaves your co-op with the choice to use the existing assets until they are obsolete or do what our cooperative forefathers did-band together and create infrastructures to support the next generation. The member cooperatives of TMA have approached the asset renewal plan with one thing in mind, the customer. In addition to new grain storage, legs and green field sites, numer-

it would be to know this information and I am proud our people developed a solution to your request. While we take our planning process very seriously, we take execution of our plan even more seriously. By listening to our customers and staying in tune with the advancements in technology, we can maintain our efforts to make MKC a company that is easy to do business with. Our intent, as stated earlier, is to continue to enhance your overall customer experience. We hope we are hitting the mark for you and when we don’t, please make certain to let us know how we can raise the bar. I also expect you to continue to hear us ask, “How are we doing?”.

ous other projects have been completed improving the customer experience. In several locations, dual scales have been added to eliminate harvest bottle necks and return our producers to the field in a timely manner. The construction of the rail terminal in Canton is also an investment in our cooperatives’ future. This terminal will allow TMA access to new markets, improving harvest time logistics. It will also allow us to capture additional market opportunities which can be passed back to our owners in the form of patronage. The future of our cooperative and asset renewal plan lies in each owner’s hands. Regardless of the growth of our cooperatives, the decisions are governed by the farmers who use our services on a daily basis, not some faceless investor group. The competition will try to keep us from gaining strength by offering deals that appear to be too good to be true. These offers are intended to convince you to drive by the facilities you own and not do business with yourself. It is our responsibility to educate and tell the story of the value of the cooperative system. When you look at the annual patronage allocations, section 199 deductions and freight savings, doing business with yourself just makes sense.

The following is an example of the true delivered value between the terminal and local cooperative:

Groveland

Location

Hutchinson Terminal

$5.86 -$0.15 +$0.12 +$0.12 $5.95

Cash Price Freight Cost Patronage Section 199 Deduction Delivered Price

$6.06 -$0.20 N/A N/A $5.86

Note: These figures are estimates and are subject to change at any time.

Increased Investment Opportunities (continued from page 6) of return that is very competitive in today’s marketplace. For the Demand Note program, the variable interest rate is currently at 2.5 percent and can be transferred or converted to a Certificate of Indebtedness. Investors must be Kansas residents and an MKC stockholder. The limit of investment per investor is $300,000. Interest is paid annually on July 1 for both investment programs. Interested participants of the investment program are encouraged to contact Laurie Thiesen, MKC accounts payable manager, at lthiesen@mkcoop.com or 620-345-4116.

To learn about the opportunities awaiting you, visit our website at www.mkcoop.com/employment.