MKC Connections | Fall 2020

CONNECTIONS FALL 2020

INNOVATION IN AGRICULTURE PG. 12

BOOSTING THEIR BOTTOM LINE

PG. 14

FARMERS. THEY KNOW SOME SEEDS ARE PLANTED FOR THE NEXT GENERATION.

We equip farmers with the tools to 2 Connections best protect our soil, water and air.

Contents IN EVERY ISSUE

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President’s Column Straight from President and CEO Brad Stedman’s desk.

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News Briefs The latest from MKC and its employees.

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TMA Column A word from our grain partners.

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Talk Back We asked, you responded.

FEATURES

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Get to Know Mid-West Fertilizer The newest partner to MKC, Mid-West Fertilizer has been finding ways to help growers and retailers for over 40 years.

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Innovation in Agriculture MKC maintains its place in the market by bringing innovative products to its customers.

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Boosting Their Bottom Line Member-owners across the state capitalize on direct-toconsumer sales as a supplemental source of income.

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An Important Mix A look at how traditional and digital media create a balanced source of news and information for farmers.

20 Mid Kansas Cooperative @midkscoop

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Mid Kansas Cooperative @midkscoop MKC - Mid Kansas Coop

MKC Mission To create customer, employee and partner success to provide a safe and sustainable food supply.

A Puppy Partnership Hillside Kennels in Abilene finds success utilizing the Purina Kennel Program through MKC.

Value Added Experiences The MKC internship program adds value to student experiences and the cooperative as a whole.

Editorial Staff Nichole Gouldie - Communications and Brand Manager Kelli Schrag - Communications Specialist Katlin Allton - Communications Intern

Board of Directors Allan Wegner - Chairman Jason Gaeddert - Vice Chairman David Mills - Secretary Duane Johnson James Mosiman Sara Hasty Hal Mayer Ben Schrag J. Daniel Eakes John Borth C.J. Blew

MKC Vision Partner with customers to successfully navigate the complexity of modern agriculture and industry.

Management Brad Stedman - President and CEO Danny Posch - Executive Vice President and CFO Dave Spears - Executive Vice President and CMO Erik Lange - Executive Vice President and COO Anne Warren - Executive Vice President and CHRO

MKC Values The success of our business will be determined by our ability to focus on safety, courtesy, image and innovation.

Connections is distributed free to MKC member-owners. When reporting an address change, please contact (620) 345-6328 or contactus@mkcoop.com. www.mkcoop.com

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COLUMN | NEWS | FEATURE

STRONG FOUNDATION. STRONG FUTURE. PRESIDENT’S COLUMN BY BRAD STEDMAN, MKC PRESIDENT AND CEO

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Our success is directly tied to our memberowners and our commitment is never to forget that.

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t is hard to believe that nearly nine months have passed since I started my first official day with MKC. In the very beginning, I shared with the Board of Directors my 100-day plan, which included customer meetings, location visits, supplier meetings and other grand plans to introduce myself to the organization and our member-owners. Little did I know this timing would nearly perfectly coincide with the upswing of COVID-19. We immediately entered into a world of virtual meetings and video calls, where we got to see the living rooms, basements and kitchen tables of our employees and supply partners. So much for that 100day plan!

As I’ve mentioned to many of you, in the time that has passed since, I’ve felt like Peyton Manning standing under his center yelling “Omaha” to anyone that would listen! I appreciate how well prepared your cooperative was to make this change and demonstrate adaptability in the face of something none of us anticipated. I am confident this adaptability came through the strength of the cooperative’s strong foundation.

It is often said the strength of a building lies in its foundation. A well-built foundation provides the structure’s stability from the ground and keeps the building standing against nature’s forces. Likewise, laying a strong foundation of strategy, systems and leadership are vital for a business to flourish.

Like everyone else, we weren’t immune to the challenges and complexities that presented themselves so far in 2020, but the foundation built in years past was strong. “Strong Foundation. Strong Future.” is a powerful reminder of why the cooperative demonstrates continual improvement for our memberowners by investing in resources, talent, technology and assets.

One definition of strong is the ability to withstand great force or pressure.

The strong foundation of MKC has provided a base for the cooperative to remain relevant in the good times and in times when the economic environment in production agriculture is not as promising. Our past investments have prepared the cooperative for times like these and have propelled our company forward. We will continue to invest in areas that will bring value to our member-owners today and for generations to come.

The 2020 fiscal year was record-breaking for MKC in terms of volumes in our core business areas of grain, agronomy, energy and feed. Our financial performance was strong as well, with total net earnings just short of $10 million. Our Board of Directors and leadership continue to discuss and make decisions about striking the right balance between returning those earnings to our members through patronage and reinvesting in resources and assets to continue to ensure we are serving producers’ needs well into the future. We thank you for your continued business and support.

Over the past couple of years, we have had many opportunities to grow and make additional investments on behalf of our owners for the future. We welcomed a merger with Plains Equity Exchange and Cooperative Union

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members in June of 2019. We worked together with their employees to integrate people, processes and assets over a few months. This additional geographic footprint spreads our services over a larger area and allows us to create synergies in our business, particularly in grain. This is an example of how our growth enables us to develop talent and create career path opportunities for our people. As we grow, this kind of example is important to attract and retain top talent across our region.

We continue to find new markets in which to deliver grain, both foreign and domestic. The terminal in Canton has shipped out 326 trains since December 2014 and the Sumner County Terminal has shipped out 59 trains since July 2017. These investments, as well as new investments like the additional grain storage at Moundridge in 2020, allow MKC to improve speed and space for local harvest times and create additional value for our members as we seek to market your grain around the country and globe.

We have invested heavily in technology with the end goal in mind of making it easy to do business with MKC. With each investment in technology, we ask questions like “How will this help our owners?” and “Does this make doing business with MKC easier for our customers?” We will continue to get feedback from you to understand what future needs you have and then work with strategic partners to make decisions about bringing those investments to life. As the world and business continue to change at a rapid pace, please know that we are always looking for ways to help keep our members on the cutting edge of technologies to enhance their operations.

We would be remiss to not reflect on the acquisition of Mid-West Fertilizer. In October 2019, Mid-West Fertilizer Inc. and MKC entered into a letter of intent for MKC to acquire Mid-West Fertilizer, a full-service agricultural retailer headquartered in Paola, Kansas. In May 2020,

the acquisition was finalized and announced as a whollyowned subsidiary of MKC. This acquisition strengthens our position in the marketplace and will allow us to expand our services to create additional value for our owners and customers. We see the growth of our footprint as a key part of our strategy. Mid-West Fertilizer is a strong ag retail organization with a great team. The synergies gained through this acquisition will allow both companies to continue to achieve greater success.

As we progress and build on the past successes of MKC, we want to call out all of the hard work, dedication and enthusiastic mindsets our employees bring to work each day. They truly show up with our customers and owners in mind in all they do. Our keys to success are four simple terms: safety, courtesy, image and innovation. As simple as these words are, these internal and external facing objectives drive our business. We want to be a place where others want to work and that provides employees an opportunity to grow in their career. We also strive to be a business you want to do business with by maintaining a professional image and providing the tools you need in your operation. All the while, we make certain safety is at the forefront of all we do for our employees and our members.

These are certainly interesting times for not only your cooperative, but also for all aspects of our personal and business lives.

Thank you to our member-owners and customers for their continued business and support. From the foundation of the cooperative and into our future, our success is directly tied to our member-owners and our commitment is never to forget that.

ANNUAL MEETING CHANGES COURSE MKC hosted its 55th Annual Stockholder’s Meeting on July 23, 2020. Due to COVID-19, the business meeting was conducted virtually and included reports of management and officers, the presentation of the audit report and the announcement of the election of officers.

Allan Wegner, MKC board chairman, called the meeting to order at 10:00 a.m. and recognized a quorum, or 20 member-owners, was present. MKC Board Member David Mills presented the proof of due notice of the meeting as well as the July 16, 2019, annual meeting minutes for approval. continued on page 6

Keith Becker is recognized for 15 years of service to the MKC Board of Directors by Board Chairman Allan Wegner.

www.mkcoop.com

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COLUMN | NEWS | FEATURE

FIGHTING HUNGER WITH DONATIONS TO LOCAL FOOD BANKS Throughout the month of July, MKC employees banded together with the help of member-owners, vendors, community members and more to help fill the shelves of area food banks through their eighth annual MKC Food Drive. Despite the challenges COVID-19 presented, participating locations collected over 1,000 pounds of food that they donated to their local food bank.

Participating locations include Abilene, Burns, Groveland, Haven, Moundridge, Plains/Kismet and Walton. Four locations managed to collect over 100 pounds, and Haven collected the most at 320 pounds.

Since 2013, MKC has provided monetary donations to food banks in partnership with Land O’Lakes, Inc. Foundation. This year, MKC committed over $21,700 to local food banks in 16 communities. The donations were a part of the cooperative’s annual stewardship efforts to alleviate hunger.

“This is an opportunity for us to assist the local food banks that provide meals and essential healthcare products to many people within our trade territory,” said Brad Stedman, president and CEO, MKC. “We are committed to addressing food insecurity in the communities we operate in and proud to support our local hunger relief agencies.”

Organizations benefiting from this year’s cash donations are: Abilene Area Food and Clothing Center, Emmanuel Mennonite Church, Flint Hills Breadbasket, Ottawa County Food Bank, Marion County Food

Bank, McPherson County Food Bank, Gray County Food Pantry, Obadiah’s Pantry in Anthony, Northern Rice County Food Bank, Salina Emergency Aid Food Bank, Reno County Food Bank, Haskell County Food Pantry, Harvey County – Harvest of Love Program, Butler County Salvation Army, Liberal Food Pantry and Wellington Community Food Bank.

Each year, the Abilene location partners with West’s Countrymart in Abilene to purchase food from monetary donations. Sarah Ryff, MKC staff accountant, is pictured with the non-perishable goods collected and donated by the Abilene location.

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Ken Hamby of Lindburg Vogel Pierce Faris presented the results of the year-end audit engagement, followed by Executive Vice President and Chief Financial Officer Danny Posch’s presentation of financial performance and patronage dividends for the fiscal year.

The breakdown of the 2020 financial accomplishments resides in three metrics, the first being net earnings.

Net earnings are the level of financial success MKC achieved during the year. Posch reported this year’s net earnings were $9.7M, a $700,000 increase over the 2019 financial performance. In addition, MKC will carry 67 million bushels of grain, which has already given MKC a financial uplift in its 2021 fiscal year.

The second metric is net fixed assets: the measurements of MKC’s commitments to growing and upgrading the infrastructure of the cooperative.

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This includes grain facilities, agronomy, energy, and equipment. Posch stated that MKC’s net investment in fixed assets is $160,224,214. This metric has grown from $31M to $160M over the past 10 years, demonstrating MKC’s commitment to building a strong foundation for future generations.

The third metric is working capital: the measure of strength and stability of MKC’s overall financial position. For 2020, the working capital is $53,055,415, an increase of $30M in the past 10 years, Posch reported.

Total patronage allocated for the 2020 fiscal year was $1,526,861. The patronage rate for grain this year was four cents per bushel. Posch noted that because of the impact of the Tax Cuts and Jobs Act of 2017, MKC was unable to allocate any patronage to any other business units for 2020.

“This is a one-time event and going forward, we

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FINANCIAL PLEDGE TO WHEAT RESEARCH MKC pledged $150,000 to the Kansas Wheat Commission MKC previously supported the the Kansas Wheat Commission Research Foundation,” said Dave Kansas Wheat Commission through Research Foundation in support of Spears, MKC executive vice a donation as a founding supporter impactful wheat research. president and CMO. “We recognize of the Kansas Wheat Innovation This donation is part of KWCRF’s the important role the Foundation Center, which opened in Manhattan Field Forward Campaign for a plays in research projects to in 2012. sustainable wheat future. The improve the yields and profitability The Foundation works to raise campaign aims to fund research to Kansas wheat farmers and private dollars to combine with projects that improve yield public funds for the and quality, develop and advancement of wheat maintain technologies research, including the and facilities necessary accelerated release for future wheat research, of wheat varieties. and cultivate new talent Much of this research in the wheat breeding and is conducted at Kansas genetics industry.

State University. The “We greatly appreciate Kansas Wheat Commission MKC’s support of the Research Foundation Fields Forward Campaign,” was created to increase said Aaron Harries, VP of research funding above Tammy McClellan, manager of donor relations with the Kansas Wheat and beyond the resources research and operations Commission Research Foundation, presents MKC President and CEO for Kansas Wheat. “As of the wheat checkoff. And Brad Stedman with a personalized plaque recognizing MKC’s donation. a lead donor, MKC has while the checkoff is paid demonstrated its commitment to only by farmers, the Foundation farmers around the world.” support the livelihood of Kansas allows private individuals and all As a lead donor of the Fields wheat farmers by funding the Forward Campaign, MKC is proud to segments of the wheat industry to research that aims to increase support wheat research through taxsponsor the Kansas Wheat History farmer profitability.”

Wall, a new key exhibit being deductible gifts.

“MKC is honored and proud created to be put on display at the For more information about the to be a lead donor to support Kansas Wheat Innovation Center.

KWCRF, visit fieldsforward.org.

don’t expect any significant impact on patronage dividends to our members,” Posch said.

He reported, in addition to the patronage allocation, MKC will also be passing through $8.2M in a Section 199A deduction to members. This equates to 21 cents per bushel of grain. Over the last seven years, MKC has passed through $31M in Section 199 deductions to its members. He acknowledged that the 199A deduction is an added value to MKC members.

Wegner shared the chairman’s report, thanking member-owners for understanding the decision to host the annual meeting in a different format and highlighting the board’s responsibility in continuing to position MKC in the marketplace to build toward its future.

In the president’s report, Brad Stedman, president and CEO, acknowledged the challenges agriculture is facing today, and expressed his confidence that MKC’s

farmers and ranchers are equipped to handle the changes.

Nominating Committee Chairman Myron Voth reported on the elected directors for this year. The election results were: James Mosiman, district 1; Duane Johnson, at large; J. Daniel Eakes, at large.

Keith Becker was recognized for 15 years of service to the MKC Board of Directors. No new or old business was presented.

LEARN MORE: Scan the QR code with your phone camera to watch the 55th Annual Stockholders Meeting.

www.mkcoop.com

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a free choice supplement designed for livestock on forage diets

PURINA® PROTEIN AND MINERAL TUBS

ENROLL NOW IN CFA

MKC and the Cooperative Finance Association are making special financing programs available to you for the 2021 crop year. These special rates are only available for products and services provided by MKC. 2021 CROP INPUT FINANCE PROGRAM DETAILS PRE-PAY SEED AND CHEMICAL CROP INPUTS

0.0%* fixed until 3/31/2021 on pre-pay seed (row crop and alfalfa seed only) and chemical 2.25%* variable until 12/31/2021on fertilizer, chemical, application, services and seed (wheat and cover crops)

* As of July 1, 2020, variable interest rates are based on the CFA Advantage Rate. CFA interest rate indices are published at www.cfafs.com/financials

TAKE ADVANTAGE OF 0% FINANCING ON QUALIFYING SEED BRANDS UNTIL NOVEMBER 2021!

Asgrow, Dekalb, Croplan, NK, Brevant

To learn more or to sign-up for CFA, contact MKC Ag Finance Manager Tim Bergkamp at 620-747-0839.

COLUMN | NEWS | FEATURE

A PUPPY

PARTNERSHIP BY: KATLIN ALLTON, MKC COMMUNICATIONS INTERN “Dogs are like potato chips, you can’t have just one.”

This quote hangs in the office of Lindy Mayes, owner and operator of Hillside Kennels in Abilene. Her office window overlooks pens of playful Miniature Australian Shepherd puppies, proving this quote to be a reality for Mayes.

Mayes never planned on being a breeder as she was busy raising her own kids, but quickly became hooked on the Mini Aussie breed after getting a puppy for her daughter from family friend Deb Geis.

“Deb tried talking us into taking two initially and I said, ‘I don’t think so.’ Then we ended up going back for another one,” Mayes says.

Since the two initial puppies in 2000, Mayes has grown Hillside, a Kansas State licensed kennel, to around 60 dogs and has litters year-round. Her current breeding program still has lines that trace back to her first dog, Charlie. Her husband, who utilizes MKC for his agronomic needs, built a state-of-the-art puppy barn to house the puppies until they are old enough to go to their new homes. Mayes sells the offspring as pets to families in roughly 40 states and even some out of the country.

“When I first started out, I didn’t keep a single puppy. I started keeping some as replacement males and females for when the others retire, and now I have a lot,” Mayes says. “I’m busier than I was when I just had my kids!”

Mayes relies on the Purina Kennel Program and the expertise of MKC Feed Sales Specialist Zoe Woolsoncroft for her dogs’ health and nutrition. The Purina Kennel Program offers numerous benefits to Mayes’ kennel, including a free bag of food for every

seven purchased, coupons and samples for customers and educational material from Purina experts.

In the beginning stages, Woolsoncroft worked with Mayes to gradually switch the dogs to the Purina Exclusive® line of feed to avoid upsetting the dogs’ digestive system.

“I have more benefits using this line of Purina® dog food than I did with my old food,” Mayes says. “I’m very particular about what my dogs get, and I want to do what is best to improve their health. A huge benefit is having more one-on-one time with Zoe to go over our nutrition plans.”

As part of the kennel program, Mayes is able to provide her customers with a care pack consisting of feed samples, an informational pamphlet about the dog food, as well as a generous coupon. In addition, Mayes sends her puppies to their new home with treats, toys, a new pet owner manual and Woolsoncroft’s MKC business card.

“Lindy is wonderful to work with and has given us some other business,” Woolsoncroft says. “It’s a great relationship.”

Mayes has found value in her partnership with Woolsoncroft and is an advocate for the Purina Kennel Program and the Purina dog food brand.

“I highly recommend working with MKC and feeding the Purina Exclusive® line,” Mayes says. “Zoe has been easy to work with and takes very good care of me and my dogs.”

LEARN MORE: Ask your feed sales specialist about the Purina Kennel Program offered through MKC.

www.mkcoop.com

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COLUMN | NEWS | FEATURE

IZ FERTIL

ER

Company Profile Get to Know Mid-West Fertilizer BY: NICHOLE GOULDIE, MKC COMMUNICATIONS AND BRAND MANAGER

Mid-West Fertilizer has been finding ways to help growers and retailers for over 40 years. A full-service agriculture retailer today, Mid-West Fertilizer’s roots expanded far beyond their first home as a fertilizer distributor in Paola, Kansas, to now delivering products, programs and services to their ever-expanding agriculture customer base in a four-state area.

GROWING TOGETHER SINCE 1980 In 1980, Rod Silver, Harold Ackerley and the late John Kern were in the early days of their careers and all in different places in the agricultural industry, but the one thing they did have in common was their desire to start their own business.

Silver is a concrete pillar in Mid-West Fertilizer’s history and was most recently president and CEO of Mid-West Fertilizer. Silver grew up on a farm between Adrian and Drexel, Missouri. He left the farm to attend Missouri State University, but his passion for agriculture was deep.

Silver, Ackerley and Kern started Mid-West Fertilizer as a regional fertilizer distributorship in Paola, Kansas, selling and delivering fertilizer to local fertilizer dealers through the region stretching between the Mississippi River and the Rocky Mountains.

An industry influencer and leader from Texas provided a lot of guidance and expertise for the team of young entrepreneurs in the early years. Silver also contributed much of their success to the relationship they had with their banker.

“In the ‘80s, we experienced some very tough times in agriculture, so we knew we had to diversify our wholesale fertilizer business with some physical assets,” Silver said. “In 1986, we purchased our first retail location in Drexel, Missouri.”

From that point, Silver began adding on average one retail location a year to their list of locations to build the company to what it is today. The growth was primarily with agronomy assets across Kansas and Missouri, but included several assets with grain handling and storage. Growth continued in the wholesale fertilizer business and the business portfolio for Mid-West Fertilizer. In 1995, the retail

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business added propane and fuel distribution to complement what they were already doing. “The propane business was very cyclical to farming and complemented agriculture very well,” Silver said.

“We had a really steady path of growth in early 2000,” Silver said. “This success was in large part because of the excellent people we had on our team who have a lot of loyalty and longevity to the company.”

Over 40 years, Mid-West Fertilizer expanded to servicing the farmer with grain handling, custom application, seed, feed, fuels, lubricants, propane and trucking.

“At times, I couldn’t help but wonder if we were really going to make our business work,” Silver said.

“We started with three employees and grew to the employees we have today, and that was most exciting when I look at the people impacted.”

JOINING THE MKC FAMILY On May 12, 2020, MKC finalized the acquisition of Mid-West Fertilizer Inc. and the company would operate as a wholly-owned subsidary of MKC moving forward.

MKC President and CEO Brad Stedman said, “Together, the acquisition strengthens our position in the marketplace and allows both companies to expand our services to create additional value for our owners and customers. We see the growth of our footprint as a key part of our strategy. Mid-West Fertilizer is a strong ag retail organization with a great team and the synergies gained through this acquisition will allow both companies to continue to achieve greater success for the future.”

The acquisition included grain, wholesale and retail agronomy, energy, feed and trucking. MKC and Mid-West Fertilizer have worked beside one another for three years through their relationship with Team Marketing Alliance LLC, a majority-owned subsidiary of MKC. “We chose to partner with an organization that will continue to bring value to producers, provide employees career development opportunities and allow our organization to be successful well into the future,” Silver said. “I look forward to continuing to see the long-term value and new opportunities for our producers, employees and communities.”

AN INTRODUCTION TO

MID-WEST

FERTILIZER Year Founded 1980 Retail Locations 20 locations States Served Kansas, Missouri, Arkansas and Oklahoma Employees 150+ employees Core Business Areas Agronomy Energy Feed Grain Customers Over 8,000 customers FY2019 Sales

(August 28 year-end)

$96 million

FY2020 Sales

(August 28 year-end)

$97 million

www.mkcoop.com

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INNOVATION IN AGRICULTURE BY: KELLI SCHRAG, MKC COMMUNICATIONS SPECIALIST

Since the beginning of agriculture, farmers have been innovating. They have had to change, adapt and create new farming practices. Technological advances such as modern implements, genetically improved crops and precision agriculture have allowed operations to be more profitable, efficient and sustainable.

In the same way, the use and development of farm chemicals and fertilizers has transformed agricultural production. Going beyond apps, drones or farm machinery, technical and scientific advances in crop protection products have helped provide innovative solutions to farmers to maximize their field’s nutrients and yield potential. MKC, in line with its fourth key value of innovation, knows there is a wide new frontier for innovation and agriculture. As such, MKC has partnered with two soil health companies, Sound Agriculture and Prime Dirt, to bring innovative products to its member-owners.

SOUND AGRICULTURE

Sound Agriculture develops innovative solutions that unleashes the power of plants to help growers produce crops with fewer resources. The company’s first commercial product, Source, unlocks nitrogen and

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phosphorus in the soil by activating specific microbes, supporting plant and soil health. Recognizing its position as trusted advisors to farmers, MKC partnered with Sound Agriculture to bring this new technology to its member-owners.

“Crop fertility, and specifically biologicals to improve nutrient uptake, is something farmers are really looking at,” says Nathan Larson, MKC regional sales manager in Manhattan. “When we looked at the previous research on Source, we wanted to include it in our own trials because we find it important to bring new products and ideas to farmers at the local level.”

Larson took the lead on enabling MKC’s strategic account manager team to conduct trials throughout the state. Each strategic account manager conducted two trials in their respective area, putting Source on fields from central to northeast Kansas.

Sprayed early in the season (V4 or V5 in corn), Source is tank mix compatible with any herbicide and can be broadcast applied. During the summer, Larson and the team pulled tissue samples to monitor nitrogen and phosphorus levels and track trends.

“More times than not, we saw higher rates of nitrogen and phosphorus in the fields treated with Source

compared to fields without the product,” Larson says.

More data will become available following harvest, though Larson is expectant of positive results.

“This is a product that shows a lot of promise, and the big test will be at the end of the year once we have yield data,” Larson says. “We feel that this product fits into our key of innovation, which isn’t just technology. We need to be in this space and leading the way with this product.”

PRIME DIRT

Prime Dirt is exploring a new frontier in maximizing crop production: soil fertility at the biological level.

Observing that increased diversity of the biome can improve uptake efficiency and increase crop productivity, Prime Dirt developed N-TEXX, an allnatural liquid soil inoculant that contains a broad spectrum of soil bacteria.

“Prime Dirt has a lot of experience in the bacterial field,” says Adam Froetschner, MKC strategic account manager in Plains. “Bacteria in general will be the next barrier to break through toward higher yields, and that is why MKC is choosing to add N-TEXX to our lineup. If you have everything right nutritionally, this would be the next step.”

Froetschner and other team members worked to conduct an extensive study to test different parameters.

This summer, he utilized eleven fields in the Plains area to test the effects of N-TEXX on root mass, stock thickness and yield potential.

“A big reason for the success of this experiment and data collection is due to our summer intern, Cole Reed,” Froetschner says. “Cole spent two days a week at Plains and really helped with the technology aspect.”

The corn on the left was pulled from the field treated with N-TEXX. The corn on the right was from the control field.

To make sure the data was scientifically and statistically sound, Reed used Climate Fieldview™ and Winfield® United’s R7® Tool to look at the Normalized Difference Vegetation Index (NDVI) imagery and pinpoint locations in both the control and N-TEXX treated fields that were at a similar level of field health to pull tissue samples from throughout the summer.

“We would send the samples from both the control and N-TEXX fields to ServiTech Laboratories, and then built a spreadsheet based on those samples and their differences,” Reed says. “Four plants were dug up weekly from each field to take measurements around the length of the node and the root mass of the first node down. As the ear developed, we also took kernel counts.”

Froetschner and Reed tissue tested from V4 to R1, and at V8 started to measure root mass weights and stock growth. They found by V8 to V12, there were strong differences between the N-TEXX and control fields.

“By R1, we had a positive difference in root mass toward N-TEXX at a 19% increase and a 3% stock growth improvement,” Froetschner says. “After all of our harvest data is analyzed, we will know more, but Prime Dirt’s findings show a 3-7% improvement in yield. Our kernel counts are showing an even greater potential than that.”

“Once we have that data, we’ll be able to do a lot of things with it,” Froetschner says. “This data collection is going to be an ongoing power to the growers in the area. The devil is in the details and bacteria is definitely a detail. In today’s agriculture sector, detail orientation is the key to success, especially in exploring innovative solutions, and MKC is focused on providing that for our member-owners.”

Froetschner (left) and Reed (right) examine an ear of corn as part of their N-TEXX study.

LEARN MORE: Ask your Strategic Account Manager or nearest MKC location to learn more about Source and N-TEXX.

www.mkcoop.com

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BOOSTING THEIR

BOTTOM LINE BY: KELLI SCHRAG, MKC COMMUNICATIONS SPECIALIST

Opportunities to buy agricultural products directly from farmers are commonplace in America’s rural towns. Farmers markets, roadside stands and U-Pick farms have continued to rise in popularity across the heartland, mostly due to the growing consumer interest in obtaining fresh products directly from the farm. These outlets allow consumers to learn where, how and who produced their food and enables farmers to develop a personal relationship with their customers.

Across the state, MKC member-owners have capitalized on direct-to-consumer sales as a supplemental source of income, whether it be in addition to their traditional row crop operations, as a value-added product or as a seasonal commodity.

GAEDDERT FARMS SWEET CORN The start of summer in central Kansas is highlighted by the distinctive green and yellow Gaeddert Farms

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sweet corn stands sprouting up in parking lots across the Wichita and Hutchinson area. The business, operated by sisters Julie Ball and Tonya Martisko, sells homegrown sweet corn and a variety of other farm-fresh fruits and vegetables.

What started as a half-acre patch for extended family to pick corn has grown into a 100-acre business with 11 retail stands in seven cities, including Hutchinson, Newton, McPherson, Salina and several Wichita locations.

“We grew up in the sweet corn business,” Martisko says. “Our parents have been farming for over 50 years. As kids, Julie and I, along with our cousins Jason Gaeddert and Heather Martens, would sell corn on the sidewalk in front of our grandparents’ house in Buhler. We were happy to get ten customers a day.”

As the two grew, so did the business. Both graduated from Buhler High School and Bethel College in North Newton, and later would take

vacation from their careers to manage the two-week season during the summer. Prior to the first stand opening in Hutchinson in 1996, corn was only sold from the family farm located just east of Buhler.

“We have had a lot of growth since our first stand in Hutchinson,” Ball says. “We quit our jobs in 1999 to put all our efforts into making this a full-time business. That same year, we added locations in Wichita and built the canopies we use today.”

The planting season begins as early in the year as possible and multiple plantings are staggered to get fresh sweet corn for a six-to-eight-week summer season.

The duo partners with MKC Strategic Account Manager Chris Thompson for expert agronomic advice.

“Chris is a big help for us,” Ball says. “He has given us a lot of advice on chemicals and conducts research to come up with different ideas for our operation. He does a lot for not only our sweet corn, but our entire farm.”

Once the corn is ripe, it is mechanically picked at 3 a.m. each day with a machine driven by Martisko’s

son, Zachary. Martisko’s other children, Nicholas, Hannah and Tyler also have roles in the operation, from working at stands to sorting and boxing corn at the farm.

“It’s enjoyable to work together as a family business,” Martisko says. “I enjoy being able to see my kids grow up in the business and learn how to work and have a good work ethic. It shows in other things they accomplish.”

Gaeddert Farms employs approximately 50 summer staff, many of which are students and teachers. The staff begins each day at 5 a.m. by packaging boxes of corn to ship to each stand to sell for the day. Corn that is not sold by the end of the day is donated to local food banks.

“We’re proud of this business we have built,” Martisko says. “We take pride in the fact that we are known for our quality and integrity. We provide customers with an outstanding product as well as an honest, family-oriented atmosphere.” continued ON PAGE 16

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Tara (left) and Shelby (right) Varner milk their herd by hand each day. The milk is used as milk replacer and to make cheese and lotion to sell at craft fairs.

THREE VARNER GIRLS GOATS The Varner sisters have always been business minded.

At a young age, Amy Varner convinced her parents, Calvin and Carla, that owning a few dairy goats would be cheaper than buying milk replacer for bottle baby calves. Her sisters, Tara and Shelby, started showing dairy goats in the following years. Three goats turned into more and ten years later, the sisters have built the Three Varner Girls Goats brand by genetically improving their herd and selling value-added goat milk products.

The Varner family farm is now home to over 180 meat and dairy goats, with breeds ranging from Boers to La Manchas. Most meat goats are sold to youth as 4-H projects while dairy goats are used for milk production and are shown through American Dairy Goat Association sanctioned shows.

“A lot of this operation started through a 4-H project,” Tara says. “Now we breed our own meat goats that we sell to 4-H members. It has all come full circle.”

The sisters oversee the maintenance of the herd, including nutrition, breeding and milking each goat by hand.

“We’re always outside by 7 each morning,” Shelby says. “It takes about 45 minutes to milk the 20 does that are in production.”

In addition to milking, morning chores include feeding grain to all of the pens, feeding the milk to the baby animals and making sure everything has hay. In the evening, the does are again milked by hand.

“About 10-12 gallons of the milk is used back on the farm as milk replacer for the kids and bucket calves,”

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Tara says. “The rest we use to make cheese, soap and lotion that we sell at craft fairs. I also sell cheese to a local person that dehydrates it and sells it as dog treats in Washington and Oregon.”

The Varner sisters work with Brent Floerke, MKC agronomy sales and service specialist at the Benton location, to order grain and concentrate for the herd.

“Brent always calls to ask if we need more grain when they send in an order,” Tara says. “He even personally went up to Manhattan to pick up our concentrate for us when the truck stopped delivering due to COVID-19.”

Through all of the growth and changes over the years, the sisters have learned more about each other and how to work well together.

“We spend a lot of time in each other’s pockets,” Shelby says. “Everything we do is together, whether that is a good thing or a bad thing. We’ve built a strong family unit.”

PEDRO’S CORN CHIPS Leon Winfrey wears many hats. In addition to his notable cowboy hat, Winfrey wears the hats of farmer, food scientist, accountant and marketer for his business, Southwest Tortillas.

Winfrey and his family have grown food grade white corn on their farm in southwest Kansas since 2001.

Southwest Tortillas’ fresh corn tortillas are sold to restaurants throughout Kansas and Oklahoma, where they are fried and served to customers in bottomless baskets. The Winfrey’s also sell bagged corn tortilla chips, marketed under the brand name Pedro’s Corn

Chips, in small-town grocery stores in the area.

The idea for a tortilla business came when corn prices were low and Winfrey had a desire to boost their farm’s bottom line.

“In the early 2000s, corn was under $2 a bushel,” Winfrey says. “A bag of chips was sometimes double or triple that. I knew we had to do something that added value to our corn.”

Winfrey traveled to a tortilla factory in Texas to learn the process from farm to fork. He found that it all starts in the field with a quality kernel.

“I want the best quality kernel I can get,” Winfrey says. “It has to be solid with no cracks. We looked at growing an organic variety of corn as a specialty market, but frankly, organic isn’t necessarily the best quality.”

Winfrey relies on MKC Strategic Account Manager Adam Froetschner to make accurate recommendations on crop inputs in order to grow the highest quality of kernel.

“We meet with Adam to go over our fertilizer, fungicides and whatever other chemicals we need to use to grow our crop,” Winfrey says. “I expect salesmen to know the products they are selling and what they do, and Adam is very knowledgeable about his chemicals.”

Every kernel is harvested and stored at the farm, then cleaned and sized before being brought to town to cook at the factory, an unassuming blue tin building on the north side of Plains. The corn is cooked and steeped in hot water for 12 hours before it is ground into dough.

“The cooking process is what makes the chip,” Winfrey says. “I had to become a scientist when I learned the pH of the cooking water was important.

We have to control the pH of our water here in order to have a product that will fry.”

The ground corn, or masa, is then pushed into rollers to make the tortillas. Each tortilla is cut into quarters to create a chip, then fried 24 hours later. The chips are then put into 19 oz. bright, colorful bags to be peddled to area grocery stores. Winfrey worked with an expert from the American Institute of Baking in Manhattan, Kansas, to learn about ingredient labeling, and another marketing expert to learn about grocery shopping habits of consumers and how to ask for prime shelf space to compete with larger chip companies.

“I had to learn a lot about branding and marketing,” Winfrey says. “I learned that you don’t grocery shop, you grocery buy. You’re scanning and know exactly what you’re looking for, so I have just a few seconds to get your attention.”

Winfrey has seen this lesson firsthand while stocking shelves.

“Four years ago, I was having health problems and was ready to quit. I was at a store in Kiowa putting boxes on the shelf when I heard a little girl say, ‘Oh Pedro’s!’ Her mom explained they had been out for a week and couldn’t live without them. I called my wife and said, ‘I guess we’re not done yet.’”

Winfrey says what he enjoys the most is knowing that he is directly feeding the consumer.

“Our slogan is ‘from our field to your table’,” Winfrey says. “It’s satisfying to know that is exactly what we are doing. Especially during this pandemic, people are finding out their meat, toilet paper, milk and eggs don’t come from the grocery store. They’re learning that maybe farmers really do produce our food.”

Leon Winfrey uses the food grade white corn grown on his farm to make tortillas and corn chips, which he sells under the brand name Pedro’s Corn Chips.

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X I M T N ITAL A T R O P DIG D N M A L I A N O I N A W TR ADIT WS AND HO F NE A LOOK INTO BALANCED SOURCE O CHERS TE A D R AN MEDIA CREA ION FOR FARMERS AN INFORMAT E GOU BY: NICHOL

CO LDIE, MKC

Are you one that loves to open up a crisp new magazine to learn the latest news, tips or tricks, or one who strolls social media and your favorite websites each day? Even better, do you have a balanced mix of both?

While equipment, precision ag and other areas of the industry have brought more traditional farming operations into the digital age, access to news and information has changed too for farmers and ranchers.

AN NS AND BR IO T A IC N U MM

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Use of Media Survey. In contrast, use of desktop or full websites, social media sites and e-newsletters peaks around dinner time, about 6 p.m.

FARMERS AND RANCHERS USE SOCIAL TOO

More and more farmers are actively engaging in social media platforms, for both personal and business reasons.

In the early days, social media wasn’t much more than a way for teenagers and college students to let their GROWING ONLINE friends know what they were Quoting a study by Successful doing throughout the day.

THE TRUTH IS, THE Farming, “70% of farmers are Times have changed. In fact, AGRI-MARKETING online daily,” and almost a third according to iStrategyLabs’ LANDSCAPE are online multiple times each Facebook demographics day. This was no doubt helped CONTINUES TO EVOLVE report, Facebook’s fastest by the fact that in the past eight age demographic is AS NEW MEDIA AND growing years, the number of farms with people over the age of 55.

TECHNOLOGY ARE internet access rose from 60% Also, a PEW Research report to 71%, further closing the gap on social media found that 56% INTRODUCED AND that divides growers from the of internet users ages 65 and national average of around 74%. BECOME MORE WIDELY older now use Facebook, up ACCEPTED. According to a 2017 Farm from 45% a couple years prior.

Journal Media mobile research Facebook is by far the survey, phone calls are by far most popular social media the most popular and common reason farmers give platform used by producers, according to the 2015 for using their phones. However, texting, sending and Meredith Agrimedia study and a 2016 Farm Futures receiving emails, checking social media and monitoring survey. Other frequently used social media channels the weather are also commonplace activities. include YouTube, Twitter, LinkedIn, Pinterest and Producers send texts and access mobile websites Instagram. Farmers use these channels the same fairly consistently between 8 a.m. and 6 p.m., way many of us do. Facebook and LinkedIn are most according to Meredith Agrimedia’s 2015 Farmers’ frequently used to connect with family, friends and

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colleagues, while YouTube, Twitter and Pinterest are most used for entertainment. About 46% of farmers use Facebook for personal reasons, and of those, 56% are 35 years old or younger.

But farmers are also tapping into social media — specifically YouTube, Facebook and Twitter — for general news and information about products and services that can help them improve their farming operations. In the 2015 Meredith Agrimedia study, 51% of surveyed producers reported using YouTube to watch news, music and educational programs. But they’re also watching product demos from ag companies or retailers and ag news videos. And according to the Farm Futures survey, while only 9% of producers use Facebook for farm business reasons, that percentage jumps to 21% for the 35-and-under crowd.

TRADITIONAL MEDIA Increased digital media use hasn’t occurred at the expense of traditional agricultural media outlets such as ag magazines, newspapers and farm radio. Several agri-marketing surveys show farmers and ranchers are consuming more information in general and are using a variety of traditional, digital and face-to-face channels.

Make no mistake: Traditional print media are still essential for multiple demographics including younger producers and larger operations. In fact, use of ag magazines and newspapers is consistently high across all age groups. But digital media offer the opportunity to communicate more quickly and in more places.

COMMUNICATING DURING COVID As with all companies this year, MKC has had to show its flexibility and creativity when it comes to communicating with its customers.

Since the impacts of COVID-19, large meetings, farm shows and even farm visits have been abandoned for everyone’s health and safety. MKC account managers discovered new ways to communicate with customers through online tools, and email and digital messages continued to be key in these times.

The truth is, the agri-marketing landscape continues to evolve as new media and technology are introduced and become more widely accepted. Today we have more options than ever before to effectively engage farmers and ranchers, and they have more options for getting the information they need to help run and manage their operations. What’s more, the newest generation returning to the farm is extremely comfortable with digital technology. That makes understanding how, when and why farmers and ranchers use various digital media channels essential for agrimarketers wanting to deliver the right content at the right time to the right person using the right channel.

4 WAYS TO STAY

CONNECTED

WITH MKC 1. Like us on Facebook Like and follow MKC on Facebook by searching for Mid Kansas Cooperative or visit facebook.com/MidKansasCooperative.

2. Follow us on Twitter Are you on Twitter? If so, give MKC a follow at @midkscoop to stay up-to-date on all things happening at MKC. 3. Find us on Instagram See Instagram photos and videos from MKC at @midkscoop.

4. Sign-up for emails Scan the QR code with your phone camera to opt-in to receive emails from MKC featuring event information, products, education and more.

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COLUMN | NEWS | FEATURE

VALUE ADDED EXPERIENCES BY: KATLIN ALLTON, MKC COMMUNICATIONS INTERN MKC’s tradition of growth and excellence relates not only to its increasing membership and footprint, but also to its internship program. Created in 2011, the intern program has evolved into one of the most structured and effective programs among agricultural cooperatives. The summer-long program focuses on technical exposure in the intern’s areas of interest and professional skills such as public speaking, communication standards and leadership etiquette.

Mirroring the innovation and constant growth of the agricultural industry, MKC has advanced its internship program by adding several new positions over the years, including IT application development and supply chain and inventory management to its list of traditional agriculture internships in operations and sales.

“MKC is a growth-oriented cooperative, and our internship program is a reflection of that,” says Hilary Worcester, MKC coordinator of talent and industry partnerships. “We recognize the future of agriculture is not just in the field and will include a need for diversely knowledgeable experts.”

MKC’s unique internship experience is due to its high regard for the intern. Students who apply for the program are screened for specific criteria, including their willingness to learn and grow, how they communicate, and whether they have a mindset for teamwork.

Interns are selected through formal

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interviews with potential mentors to ensure they are a good fit for their role; be it in operations, communications, accounting, decision ag, sales and more.

“The interns are mentored by leaders in the organization whose role is to make sure they see many parts of the organization, do meaningful work and understand how it all fits together,” Worcester says. “Each intern has a unique experience based on their mentor’s position within the company and their area of expertise.”

As part of the program, interns are assigned a summer project that aligns with one or more strategic objectives on the MKC and TMA strategic plans. Interns work throughout the duration of the summer to create innovative ideas related to their specific project and present these solutions to the leadership team and Board of Directors at the end of the summer.

“The most rewarding part about working with an intern is seeing the new ideas they bring to the table,” says Riley Eck, former intern and Groveland management trainee.

“Sometimes we, as employees, get stuck with blinders on, and having someone from outside the company come in and give a different perspective on things can really help the organization out.”

MKC’s efforts to provide a hands-on, value-added experience has resulted in 18 permanent hires into full-time roles with MKC and TMA. In the summer of 2020, six past interns

took on the role as mentors.

“Retaining these interns and having them pay their experience forward is invaluable,” Worcester says. “It’s all about getting the right students in our culture and letting them experience what MKC is.

During the recruitment process, we often rely on word-of-mouth from past interns who are quick to share their positive experiences.”

Ethan Knight, a summer of 2015 operations intern at the Moundridge location and now the grain operations manager at the Canton Terminal, served as a mentor this summer to Seth Hemberger, operations intern.

“The best part about being a mentor is getting to spend time with young professionals who are eager to learn, ask questions and work hard,” Knight says. “As much as it’s my goal to pass knowledge to college students, I find myself being able to learn and grow from the experience as well.”

LEARN MORE: Follow MKC on social media and scan the QR code above to learn more about the MKC internship program.

Top Left: Katlin Allton, communications intern Top Right: Cole Reed (left), decision agriculture intern Middle Left: Seth Hemberger, operations intern at Canton Middle Right: Chelsey Knight, operations intern at Walton Bottom: MKC and TMA hosted 18 students from various colleges across Kansas and Oklahoma.

The internship program provides students with technical and professional skills through hands-on experiences and strategically aligned projects.

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COLUMN | NEWS | FEATURE

TAKING THE SQUIRRELS OUT OF YOUR DECISION MAKING COLUMN BY: DEVIN SCHIERLING, TMA SALES AND MARKETING MANAGER One of my favorite movie scenes of all time comes from the 2009 Disney movie, “Up.” Toward the middle of the movie, Dug, the beloved talking golden retriever meets Carl Fredricksen, the grumpy older man, and Russell, the inquisitive Boy Scout, for the first time. As Dug is speaking to Russel, he pauses mid-sentence and shouts, “Squirrel!” then continues with his conversation. This scene depicts what most of us have been experiencing since mid-March. Just when things are starting to normalize slightly, a new challenge or shiny object catches our eye and tempts us to alter our course.

The agriculture industry has seen an influx of “squirrels” or new businesses enter the grain handling and risk management space. Growth has spotlighted how quickly offerings are changing to meet the producers’ needs and provide them with the experience they desire. The marketing emphasis on re-branding traditional grain marketing programs and offerings with new names can be overwhelming and these campaigns have the potential to distract us from executing a profit-based market plan.

Flexibility is key in executing a successful marketing plan.

Being willing to manage your position throughout the crop year is only part of the flexibility that is required to excel in today’s volatile agriculture markets. Evaluating all of the tools in your toolbox is vital to creating a program that works for your farming operation.

Every producer is unique and so are the offerings we provide. Many of our customers live in areas that are not tributary to one of our grain elevators. These customers utilize our direct shipment program while executing their plan. The direct shipment program through TMA allows producers to deliver to any pre-approved end-user or grain elevator by simply taking a picture of the ticket and sending it to their TMA representative. This flexibility gives producers the ability to execute their plan and maintain a positive and familiar customer experience.

A producer who stores grain on the farm can also utilize our merchandising and risk management network to maximize the value of their space. Like our direct shipment program, LEARN MORE: See how TMA can take producers can maintain their delivery flexibility and use the ‘squirrels’ out of your decision TMA’s team to pick up grain from their farm. Flexible delivery making by visiting tmagrain.com. provides our producers with the peace of mind of working with a licensed and bonded company while executing their risk management plan.

Our offerings have changed with the markets, but our focus has remained on providing customized risk management solutions to your kitchen table. Our local focus allows our team to capitalize on the individual nuances of the region while still be connected to a more extensive network. We are here to partner with you on your operation to take the “squirrels” out of the grain handling and risk management space.

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TALK BACK WE ASKED: WHAT IS YOUR FAVORITE HARVEST MEMORY?

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In our early years with MKC, I baked a LOT of cookies, and over time, we delivered them to employees putting in long hours at the elevators all over the MKC footprint.

- Cindy Christiansen

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Watching a tornado go just several miles south of where we were cutting!

- Margie Miller

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I remember as a kid getting to play in the wheat that was in the grain truck while we were waiting for another combine load to dump.

- Jared Miller

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remember being a little guy making sheaves and shocks of grain. They “Iwere taken to the threshing machine in the upper floor of the barn and

the machine had a chute to get the grain in bags. The bags were carried to grain bins in the barn.

- Terry Pursel

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Ice cream around the kitchen table around 10:30 p.m. after being in the sun all day driving the combine or unloading at the farm. This was before cabs on combines or air conditioning in our house.

- Duane Johnson

We harvested with our neighbors!

When the last load went to the elevator, we gathered in their kitchen and opened champagne to toast a good harvest!

-Linda McAdam

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BE FEATURED IN THE NEXT ISSUE!

HOW DID YOU GET INTO AGRICULTURE? SEND YOUR RESPONSE TO SOCIALMEDIA@MKCOOP.COM OR

23 COMMENT ON OUR TALK BACK SOCIAL MEDIAwww.mkcoop.com POST.

307 W. Cole P.O. Box D Moundridge, KS 67107

DONATION TO KANSAS FFA FOUNDATION SUPPORTS AG EDUCATION AND LEADERSHIP DEVELOPMENT MKC recognizes the leadership development offered by the Kansas FFA Association and as such, donated $10,000 to the Kansas FFA Foundation to assist in its mission of enabling Kansas Agriculture Education and FFA programs to empower future leaders and their passions. A large portion of MKC’s donations go toward programs that promote ag education and leadership development, alleviate hunger in its communities and improve or enhance community safety.

“This is a great opportunity for us to assist the Kansas FFA Association, which plays such a positive role in the lives of so many young people within our trade territory,” said Brad Stedman, president and CEO, MKC. “It is exciting to think those same youth will be the future leaders of our communities.”

“The Kansas FFA Foundation is blessed to receive the support of MKC,” said Beth Gaines, executive director of the Kansas FFA Foundation. “This generous donation will be used to provide jackets to deserving students in the MKC trade territory, sponsor Supervised Agriculture Experience (SAE) grants for students to launch or grow their own agriculturerelated ventures and help support our state-wide service initiative to be held during the State FFA convention in the spring. These dollars represent growing and supporting future agricultural leaders and we are proud to work side by side with MKC.” Funds totaling more than $32,000 have been donated to the Kansas FFA Foundation since 2016.