MKC Connections | Winter 2020

CONNECTIONS WINTER 2020

FABRIC OF OUR COMMUNITY PG. 12

TELLING SUSTAINABILITY’S STORY

PG. 16

FARMERS.

THEY KNOW THERE IS NO PLANET B.

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

Proudly partnered with

Contents IN EVERY ISSUE

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President’s Column Straight from President and CEO Dave Christiansen’s desk.

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News Briefs The latest from MKC and its employees.

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FEATURES

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Mid Kansas Cooperative @midkscoop

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TMA Column A word from our grain partners.

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.

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Bushels of Success by Rail Rail terminals send local grain grown by co-op members to new markets.

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Fabric of Our Community MKC employees and member-owners reinvest in rural communities through service and involvement.

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Telling Sustainability’s Story MKC’s new sustainability program, SERVES, intends to define and highlight the cooperative’s sustainablity principles.

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Intentional Grounding MKC employees promote ease of doing business by utilizing a playbook of industry advancing technology.

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Next Generation Knowledge MKC’s annual Emerging Producers Program provides young producers an opportunity for networking and growth.

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

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

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

Management Dave Christiansen - 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.

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COLUMN | NEWS | FEATURE

LOOKING BACK

PRESIDENT’S COLUMN BY DAVE CHRISTIANSEN, MKC PRESIDENT AND CEO Through my 40-plus year career in the cooperative system, I have had the opportunity to write numerous newsletter articles on an array of topics. While it may not be that apparent, at one point in my career, I was even the editor and attended a newsletter school to sharpen my skills.

However, through all of my commentary, I have never written one like this, so bear with me.

It was with a mix of emotions that I recently announced my retirement. While some start the countdown and desperately look forward to the day they picked on the calendar as their date of retirement, I haven’t looked at it with that much eagerness. Over the past year, with each event that passed, the thought would cross my mind that this is the last one of these events I would have the opportunity to attend.

As I was thinking about retirement, I realized that if I am fully engaged in performing my role to the best of my ability, there was never going to be the perfect time to step aside. If the team at MKC is executing on our intent statement and driving hard every day to achieve our objectives, then we won’t ever have a slow period. If we’re waking up every day with the intent of making our customers more successful and raising the bar on what good performance looks like, then I don’t anticipate there being a perfect time to step aside.

At the end of that discovery, I had to pick a date. I was comforted by the knowledge that our team would execute the plan as well as ever, and the Board of Directors had the skills and foresight to select the new CEO. I was also constantly reminded that while managers have a retirement date, the cooperative never does.

Those of you who know me know that I don’t spend much of my time looking back. Possible exceptions would be to remind myself of what not to do again or to make sure we still have alignment. Nevertheless,

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generally, I’m forward-focused and the company is today. On this occasion, I am making an exception.

I invite you to join me as I reflect on what I’ve observed as the movement of the cooperative system in my career.

It has been fascinating to me over the years to watch the local co-op morph from basically a warehouse for growers, a place to aggregate their purchases and a place to store and collectively market their grain, to what it has become today.

The most influential and most successful cooperatives have positioned themselves to be an integral part of the operations that many of you operate today and to make that required massive investments in infrastructure, technology and talent.

Our value propositions of the past simply were not going to get it done regardless of how tightly we hung on. Our structural anchors no longer had the same value to your operation. Our core values did, but not the tools, talent and infrastructure of yesteryear.

We had to realign and reshape our business to reconnect with yours. The tools we have adopted today are the differentiator for our customers. Even

An archived January 2004 newsletter announces Dave Christiansen as the incoming general manager.

President and CEO Dave Christiansen interacts with a member-owner at the 2019 Annual Meeting.

the most stubborn carpenter transitioned from the hand saw to the power saw, but we didn’t get rid of the carpenter—better tools, better knowledge and many times a better outcome by most measures.

I have also learned that the best of these companies have incredible focus, especially when the landscape is changing as rapidly as we see it today. The strongest local co-ops have a plan; they clearly define what success looks like and then work their plan. None of us can begin to compete with companies like Nutrien, Cargill, ADM or Simplot on the world stage, or negotiate products like they can with that kind of volume. Still, we can compete with them on a local level and drive customer goal achievement better than any of them.

This cooperative, a co-op of the future, is going to continue to be successful by understanding your farm, your goals, and what you see as success. We will be responsive to your needs better than anyone else. We are capturing and utilizing data to do just that like never before. Data is the new gold and is the currency on which we’ll operate in the future. Clearly, in our operation, we can drive further efficiency by driving out costs. On your farm, we can use the data to help you make better decisions. Never before has it been more critical to understand your cost by each field and by each unit of production. Data, data management and understanding how to utilize the data gathered will separate the successful “fill in the blank” in the future. I used to fear the fact that someone was collecting my data. Now I believe if they can help improve my performance, drive cost from my operation, and help accomplish some of my goals, power to you.

Every business of the future will be a technologyoriented business. We may be a product and service provider, but the delivery mechanism will begin and end with our ability to deliver via technology.

Everyday growers tell us they want more of an Omnichannel approach, and they want to conduct business how they want and when they want. These growers want to meet with an expert, develop a plan and then act out the plan at their leisure. Our customers will ultimately be able to dictate the type of experience they want with us and not have to conform to merely one size fits all approach. This customized approach aligns perfectly with our objective of making it easy to do business with us.

I hope you are as excited about the future of this company as I was when I first arrived at MKC in 2004.

The same excitement still exists if not even of greater magnitude today. The challenge for all of us is to “re-learn” as fast as the world around us is changing.

You don’t have to be a product of your environment; sometimes, you can create your own.

As I continue to reflect, I am constantly reminded of this quote, “We respect the past, but we don’t pine for the past.” We have to have a ravenous determination to improve every aspect of our company. It’s in our best interest every day, regardless of any success we may have, to begin each day as a startup company. We have to be hungry to improve and fanatic about knowing our customers and helping them achieve whatever success means to them. I am more than confident we have the team to do it at MKC. Thank you for letting me be part of this team for so long, and know I will be a vocal advocate for this team forever. It’s a great one!

www.mkcoop.com

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COLUMN | NEWS | FEATURE

LEGISLATIVE ROUNDTABLE HOSTED AT BENTON LOCATION The MKC Benton location welcomed Congressman Ron Estes on February 3 to participate in a round table discussion with area farmers. The meeting was a time for farmers to voice their concerns and raise questions to the Congressman. Conversation focused on the USMCA trade deal, grain storage and costs, and risk management.

“We appreciate Congressman Estes and his staff taking the time to engage with our member-owners and take note on the issues they see as important,” said Dave Spears, MKC executive vice president and CMO. “MKC’s focus is on making our farmers profitable and advocating on their behalf.

Estes and his staff have been here to listen and take input back to D.C. to find solutions.”

Participating in the discussion were Estes, Spears, MKC Senior Location Manager Spencer Reames, and farmers Aaron Lange, Sumner County; Austin Busenitz, Butler County; Andy Lee, Cowley County; Jeff Varner, Butler County; Tom Page, Butler County; and Walter Burress, Butler County.

Dave Spears, MKC chief marketing officer and executive vice president, explains MKC’s sustainability efforts to Congressman Ron Estes.

Congressman Ron Estes participates in a roundtable conversation with Benton-area farmers.

MKC DONATES TO WALTON RURAL LIFE CENTER

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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. As such, MKC donated $500 to the Walton Rural Life Center. MKC has donated to the charter school since August of 2014.

Part of the USD 373 Newton Public Schools, the Walton Rural Life Center charter school was the first public elementary school in the nation to completely incorporate agriculture into its curriculum.

Kindergarten through fourth-grade students learn math, reading, science and responsibility as they gather and sell eggs, grow vegetables and care for farm animals.

“It means so much to our school that our local partners care and support us,” said Jason Chalashtari, Walton Rural Life Center principal. “We are so appreciative of the donation from MKC. The money will go directly to supplies and resources for our classrooms so that our students have everything they need to enhance their learning experience.”

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Outside of the monetary donation, MKC supplies livestock feed for the farm animals and delivers the feed when needed to the school.

Charles Dowell, MKC elevator superintendent at Walton, poses with Principal Jason Chalashtari and students from the Walton Rural Life Center.

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WHITE PICK-UP TRUCK DONATED TO NON-PROFIT ORGANIZATION Cans 4 Kansas Honor Flights collects aluminum cans to support Kansas Honor Flights. On January 22, MKC donated a truck to the Cans 4 Kansas Honor Flights, which will be used in the collection of cans at more than 15 donation sites.

“The passion of our employees for helping their local communities runs deep. When an employee became aware of the Cans 4 Kansas Honor Flight’s desperate need for a new pick-up truck, they had an idea,” said Nathan Eck, vice president and director of central operations.

In large part to MKC team members Aaron Bailey and Brandon Siruta’s efforts, MKC donated a white pick-up truck from the fleet to Cans 4 Kansas

Honor Flights to replace the previously used 1995 Ford Ranger with over 350,000 miles.

“The Ranger and I have hauled 150+ tons of cans since 2011 and funded 150 WWII, Korean and Vietnam Veterans on Kansas Honor Flights,” said Warren Vincent, founder of Cans 4 Kanas Honor Flights. “Thank you to MKC, the new MKC Cans 4 Kansas Honor Flight Can Mobile is at the McPherson can site. I held back the tears, but it is sinking in now.

It is a reality!”

Kansas Honor Flight was formed in 2012 and is a non-profit that funds trips for veterans of WWII, the Korean War and the Vietnam War to visit and reflect at their respective memorials in Washingon D.C.

MKC employees Aaron Bailey (right) and Brandon Siruta (middle) pose with Cans 4 Kansas Honor Flights Founder Warren Vincent.

PRESIDENT AND CEO DAVE CHRISTIANSEN ANNOUNCES RETIREMENT After a 46-year career in the cooperative system, Dave Christiansen, president and CEO of MKC, will retire effective April 3, 2020. Christiansen has served 16 years as CEO of MKC – one of the largest farmerowned cooperatives in the country.

“Since becoming CEO at MKC in 2004, I have been incredibly blessed to spend a career having the opportunity to make a difference daily,” Christiansen said. “When you get to wake up every day and work with amazingly talented people with the intent of helping farmers be more successful, it is exciting to hit the ground running every day.”

Christiansen started his career in the cooperative system at Great Bend Co-op in 1973 while searching for a part-time job between high school and college.

From his beginnings in the seed cleaning plant to at some point in his career spending time in almost every role the co-op offers, Christiansen learned the business from the ground up. As his

responsibilities changed and increased over the years, his commitment to the cooperative system grew too.

His past positions include vice president of ag inputs for Panhandle Co-op in Scottsbluff, NE, and president and CEO of Ag Partners Co-op in Hiawatha, KS. According to MKC Board Chairman Allan Wegner, Christiansen spent his tenure at MKC adapting the cooperative to meet the current and future needs of MKC members, assuring that the cooperative remained innovative, progressive and relevant for generations to come.

“Dave’s leadership of the co-op has been transformational. His impact on MKC and TMA, our employees, our members and the cooperative system as a whole has been truly noteworthy,” Wegner said.

“It takes great leadership to run an organization like MKC, and Dave has displayed vision, confidence, inspiration and dedication in his role as CEO.” continued on page 8

www.mkcoop.com

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COLUMN | NEWS | FEATURE

GRAIN BIN SAFETY WEEK TRAINING To commemorate Grain Bin Safety Week, an initiative proclaimed by U.S. Secretary of Agriculture Sonny Perdue as the week of February 16-22, MKC hosted a grain bin safety training in partnership with ProValue Insurance and Nationwide at the Groveland location. The initiative raises awareness of the lifethreatening dangers of the grain handling industry and provides first responders with the necessary equipment and training needed to save lives from grain bin entrapments.

Attendees learned how to effectively manage the bin entry process from ProValue Safety and Compliance Area Manager David Klahr. Klahr covered the importance of using Lockout/Tagout systems, checking equipment for wear, and following standard operating procedures.

Nationwide’s Occupational Health and Safety Consultant Lauren Bear discussed housekeeping and preventative maintenance and demonstrated the explosive effects of dust. She explained the significance of removing dust from operational areas, as just a little accumulation can cause devastating explosions.

Mark Thomas, safety trainer, demonstrated the KU Grain Engulfment Rescue Training trailer. The trailer contains a grain entrapment simulator and is used to train emergency crews and industry professionals how to react to accidents and properly work to save the entrapped person.

“The grain handling industry is full of risks and workers might be exposed to numerous lifethreatening hazards on a daily basis,” said Scott Biel, safety director for MKC. “It is important that we provide these trainings to help eliminate accidents and fatalities both on the farm and at grain handling businesses.”

David Klahr discusses a safe bin entry process with attendees.

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“The MKC Board Members past and present have been terrific to work with, and I want to especially thank them for the support and direction they provided myself and the team over the years,” Christiansen said.

“The time and energy they have committed to creating the vision of what success looks like is and has been invaluable to our organization.”

In the years since Christiansen joined MKC, the cooperative has expanded grain storage, upgraded grain handling facilities, added shuttle loading facilities, expanded its agronomy service centers, engaged in multiple mergers and acquisitions, and built a leading precision agricultural program. MKC also developed a strong, effective safety culture, strategic focus on intent and objectives of the business, and robust employee development that are models in the agriculture industry today.

“Dave has championed the cooperative system by promoting partnerships with other local and regional cooperatives to form successful organizations today including Team Marketing Alliance, LLC., Countryside Feed, LLC, and Producer Ag, LLC,” Wegner said. “His innovation and leadership have followed him through his tenure on boards and councils like the Arthur Capper Cooperative Center and United Benefit Group, and through the numerous presentations and panels he has served on across the country.”

Under Christiansen’s leadership, MKC has grown in every aspect of the business since 2004. Membership has grown from nearly 3,000 members to over 10,000 members across the country. MKC now spans over 27 counties and has 375 employees serving farmers from 34 locations. A commitment to renew the cooperative’s infrastructure has led net fixed assets to grow from $9 million in 2004 to over $150 million and total assets to $538 million today.

Sought for his counsel and creative insight, Christiansen will continue to serve on boards and councils and stay active in the industry. In retirement, he plans to spend time working with organizations to help build plans, provide executive coaching, facilitate retreats and provide farm management.

Dave and his wife, Cindy, have three children and seven grandchildren. Christiansen noted spending more time with his grandkids will rank high up on his priorities.

A retirement celebration will be held in his honor on Wednesday, April 1 from 3 p.m. to 6 p.m. at the J.O. Sundstrom Conference Center in Lindsborg, Kansas.

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BRAD STEDMAN NAMED MKC PRESIDENT AND CEO After completing a thorough executive selection process, the MKC Board of Directors is pleased to announce the appointment of Brad Stedman as the next president and chief executive officer of MKC. Stedman comes to MKC after having served multiple leadership roles in the cooperative industry over the past 28 years. Most recently, he led the western business unit for WinField® United. Prior to his most recent role, Stedman served in many sales, marketing, strategic account and leadership positions within Land O’Lakes, Agriliance and Farmland Industries. In addition, he has served in the local cooperative system in South Dakota and Nebraska.

“We are excited to announce Brad as the next President and CEO of MKC, said Allan Wegner, Chairman. “He brings a unique perspective to our company with his experience in the cooperative industry that has spanned multiple states and roles.

Brad also knows MKC well through his involvement in many of our board and leadership planning sessions over the past several years. We believe he will build on the successful culture of MKC, and also best position the company to meet the needs of our member-owners now and in the future.”

“I’m honored to be selected as MKC’s next CEO,” Stedman said. “It is a privilege to be part of a team that has consistently delivered results, while focusing on the success of the customer, our farmer-owners.”

Through multiple opportunities to work with the MKC team for a number of years on many aspects of the business, Stedman is very familiar with MKC as an organization, its leadership team and strategy.

“I understand the culture that has been developed, and I am confident the transition will be a smooth one for all of us,” Stedman said. “Change is continuous, and MKC’s ability to adapt and expand is a driving force behind their success to date. I look forward to being part of an organization that is focused on evolving our value proposition to meet the needs of farmers in the future.”

Stedman will transition to MKC in April 2020. He and his wife, Kerry, and their two daughters, Adleigh and Sadie, will be relocating from the Kansas City area later this summer.

Stedman is succeeding Dave Christiansen, who has served as president and CEO since 2004 and will retire from MKC effective April 3, 2020.

GRAIN RESCUE EQUIPMENT DONATED TO SUMNER COUNTY FIRE DEPARTMENT In a proactive approach to potential grain entrapment rescues, MKC donated a ‘Great Wall of Rescue’ to the City of Argonia Fire Department. This donation will provide area volunteer first responders with the equipment necessary to make a safe grain entrapment rescue.

“We hope this equipment never has to be used, but it provides peace of mind knowing in the case of an emergency it is available” said Lawson Hemberger, MKC rail terminal manager at Sumner County. ”It is a great day when safety and community stewardship collide and we have the opportunity to support the communities we live and work in.”

The Great Wall of Rescue was designed to adapt to a multitude of grain entrapment rescue scenarios and is one of several pieces of grain rescue equipment that MKC has donated to local emergency departments across its footprint.

Representatives from the Argonia Fire Department Volunteer team accepted the donation at the Sumner County Terminal from representatives of MKC.

www.mkcoop.com

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Bushels of Success

by Rail BY: NICHOLE GOULDIE, MKC COMMUNICATIONS AND BRAND MANAGER

Grain tumbles from the hopper of a farmer’s truck at the elevator pit, about to begin a journey to its next destination somewhere in the world. But what does that journey look like for local grain?

For many years, bushels brought to the cooperative only had one choice to get closer to the end-user, and that was by truck. Today, MKC and Team Marketing Alliance, LLC. offer additional options for that journey, creating more success for the cooperative to pass through to its member-owners.

“We used to have to sell our member-owner’s grain to other companies who would then ship it to the ultimate end user,” says Danny Posch, MKC executive vice president and CFO. “Now we can sell the cooperatively-owned grain to traditional markets or new markets by rail. If the market wants it to stay home, we can now get the same price we would by shipping it out, which we never had that leverage before.”

ABOUT THE SHUTTLE LOADERS When management brought a proposal for building a grain shuttle loader to the MKC Board of Directors, Posch said heads turned, but rightfully so. Through

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all of the business planning, management shared with the Board that MKC may never ship a bushel of grain out of it by rail.

“That caused many questions, go figure,” Posch says. “But the fact is, once you have a train loader, you have choices which we never did before.”

The construction of a highspeed rail loader proved to be a good one. Today, two facilities operate as Producer Ag, LLC, a limited liability company owned

by CHS and MKC. The LLC is a member of TMA, which handles the grain marketing services.

The first high-speed shuttle loading facility owned through the partnership was built in Canton, Kansas, in December 2014. After multiple phases of construction, the terminal consists of 10 million bushels of storage today and is capable of loading 100-car shuttle trains on the Union Pacific Railway.

The Sumner County Terminal was the second facility built by Producer Ag and is located near Milan, Kansas. The Milan location, completed in July 2017, operates on the BNSF Railway and is composed of 7.5 million bushels of storage.

“These two rail terminals have been a part of our continued

commitment to meet the needs of producers and to sustain the cooperative model for future generations,” Posch said. “The addition of these spaces and speed has provided access to world markets and brought value to the local producers in the region and has allowed other cooperatives in the area access to markets through a cooperative partner.”

PIECE OF THE PUZZLE For MKC and TMA, rail transportation is a part of the puzzle to grain marketing success. “Rail transportation is an important piece of the puzzle,” says Lance Adams, TMA grain merchandiser. “Rail creates many efficiencies, including managing costs and moving large volumes of grain in a short amount of time in a marketplace where there are a lot of bushels locally.”

Adams said there is also tremendous value to the shuttle system MKC operates by having access to both the UP and BNSF railways. “It provides arbitrages between grain and we often see massive differences between the lines,” Adams says.

The Producer Ag terminals handle wheat, corn, soybeans,

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milo and canola and shipped 33.8 million bushels by rail in 2019.

“The percentage of grain shipped by rail is different every year depending on what the market is telling us,” Adams says. Since its opening in 2014, the Canton Terminal has shipped 259 trains.

The Sumner County Terminal has fulfilled 43 trains since 2017.

MAKINGS OF SUCCESS “We often are asked how the terminals are doing,” Posch says.

“By virtually any metric, the

loaders are doing amazingly well and have put millions upon millions of dollars in our farmer’s pockets even if they haven’t hauled a bushel to the rail terminal.”

Adams noted success at the terminals is evident through the opportunity to pass financial success back to the local cooperative but also through increased negotiating power and the opportunity to blend grain to sell desired proteins at the right time to end-users. “Through a strategic focus of managing quality,

GLOBAL

DESTINATIONS First Destination Houston Most Bushels Shipped to One Destination Texas Gulf Most Unique Destination Canola to northern Minnesota

we are moving less grain at an increased value,” Adams says.

“Through this partnership, the grain business at MKC and TMA has evolved from being a trucking facility to be a big player with more volume, more speed and more market access all to benefit our member-owners,” Posch says. “As a cooperative member, you can be proud that we built the only cooperatively-owned train loader in our footprint.”

GRAIN

SHIPPED CORN 17% WHEAT 50%

SOYBEANS 13% MILO 20%

www.mkcoop.com

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Ryan Barta (left) and Ryan Sears (right) serve as captains on the Windom Fire Department volunteer team.

FABRIC OF OUR BY: KELLI SCHRAG, MKC COMMUNICATIONS SPECIALIST 12

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hared Growth. Shared Success.’ is a thread that MKC weaves throughout all aspects of the 97 communities touched by its footprint. In rural communities, MKC is often the largest employer. MKC employees and member-owners do more than just live in these communities; they reinvest by supporting small businesses, acting as youth leaders, volunteering on local emergency departments, serving in churches, and more. Each individual strand is woven together to make the stitch that joins cooperative and community success.

LADDER STITCH When Ryan Sears, MKC truck dispatch manager, started as a volunteer firefighter, he did not foresee the values held by his cooperative employer crossing over into his role as an emergency responder.

“MKC’s four keys [safety, courtesy, image and innovation] really say a lot about what we project as firemen,” Sears says. “We’re someone the community looks up to, so we expect our personnel to hold a good reputation. They show courtesy by going into situations they may not like, and obviously, we don’t want anybody to get hurt.”

Sears, along with MKC member-owner Ryan Barta, serves as a captain for the Windom Fire Department volunteer team. The department averages 50 calls a year, varying from house fires and car wrecks, to a sick person in need of help.

Despite the hardships and emotional weight of protecting property from a blaze or tending to fatal crash scenes, both Barta and Sears recognize the importance of offering their time and talents to serve the community.

“I do it to help out the community,” Barta says.

“I have personal property to protect, and my neighbors have the same. I am physically able to do it, so it is a good win for everyone.”

Barta started serving as a volunteer firefighter in Little River when he was 18. Twenty years later, he says it’s rewarding to see his son and daughter take responsibility and become part of the department as well.

“All of our kids that are of age are part of the fire department too,” Barta says, speaking of both his and Sears’ children.

“It’s impactful to see our young people take it seriously,” Sears says. “I see my own sons on a house fire and they’re focused and serious. In the end, they feel that sense of accomplishment.”

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The Windom Fire Department sponsors a cadet mentorship program for youth ages 14-18. Barta and Sears found it difficult to recall those who graduated from the program and did not return as a team member.

“Being a volunteer firefighter is something that bolts us to the town and the community,” Barta says. “It’s something to draw back to and have that family tie.

We’re all kind of a family.”

Barta explains in times of need, MKC and other farmers or companies with large trucks help to supply water.

“Having the community support by bringing in water has a huge impact,” Barta says. “It shows how everyone can come together to help save lives.”

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Steve Graber (above) and Aaron Esping (below) give back to the community through blood donations.

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In the time it takes to read this sentence, a new patient is in need of a blood transfusion. Whether it’s used for emergencies or treatments, according to the American Red Cross, someone in the United States is in need of donated blood every two seconds. Despite the steady demand, donations can be hard to come by.

MKC, recognizing the importance of community involvement in Red Cross’ mission, partnered with the organization in 2012 and has since hosted 41 blood drives. Over 360 employees and community members have donated 845 units through an MKC sponsored drive. A unit is roughly equivalent to one pint.

A long-time donor is MKC Moundridge Agronomy Operations Manager Steve Graber. Graber started working for MKC in 1993 and has donated at each drive hosted in Moundridge. He recently reached 12 gallons with his latest contribution.

“It’s what I’ve always done,” Graber says. A 30year volunteer firefighter veteran, Graber says his involvement with the department triggered his desire to donate.

“You have to have the same mentality,” Graber says.

“Without knowing who they are or what their needs might be, I hope my efforts are able to help people.

Giving a few minutes of my time to give a pint of blood could save someone’s life.”

Aaron Esping, agronomy plant manager at MKC’s Groveland location, has also donated blood at each drive since he joined the MKC team six years ago.

“The importance of donating blood was impressed on me since an early age,” Esping says. “My grandma was a nurse and my dad is a universal donor, so she made him donate when he could. He’s continued that tradition and encouraged us kids to do the same.”

Aside from the family custom, Esping shares a personal tie for his motives.

“At my previous workplace, there was a fairly young girl with a rare form of cancer that babysat for a lot of my co-workers,” Esping says. “Years later, I saw her in a national Red Cross advertisement. Knowing that she

Perry Stussy (left) and Lawson Hemberger (below) serve on collegiate agricultural advisory boards.

survived and that maybe something I did helped her, encourages me to inspire future generations to donate.”

BINDING BOOKS AND BUSINESS Any action big or small can make a real difference when reinvesting in the community. Perry Stussy, assistant agronomy operations manager at Haven, and Lawson Hemberger, rail terminal manager at Sumner County, utilize their industry expertise to shape future generations of agriculturalists by serving on collegiate advisory boards.

“As an advisory board member, the instructor at the college will ask for our advice on new things they are trying and what the membership thinks,” says Stussy, who has served on the Hutchinson Community College agricultural advisory board for 30 years. “The board is divided into crop, ag diesel, and animal husbandry sections, so there are several of MKC’s farmers and dealers there for a specific reason.”

Stussy’s influence in crop-related innovations has helped HCC create a commercial driver’s license program and receive a grant to purchase drones for student use.

“I like listening to how they’re using new technology,” Stussy says. “Students will come into our meetings and introduce themselves, then stick around to learn about all the different areas.”

Through these interactions, Stussy has helped recruit students to tour an MKC location or complete an internship during the summer.

Likewise, Hemberger uses his experience to prepare Cowley County Community College students for the

ever-changing agricultural industry. The college opened a new branch in Sumner County and looked to industry professionals for direction in developing the program.

“This was a unique situation where they were building the program from the ground up,” Hemberger says. “I enjoyed having the influence of being able to tweak programs that I went through. Now that I’m working in the industry, I can look back at what I wish I learned or knew and incorporate that into their coursework.”

Hemberger’s desire to serve on an agriculture advisory board stemmed from his experiences at Kansas State University, where he learned about agriculture production worldwide. Through being on committees and talking to advisors, he was able to get a better understanding of agriculture outside of South-Central Kansas.

“I once had a professor tell me, ‘what you’re learning now isn’t being used in the industry yet, but we’re preparing you’,” Hemberger says. He uses this same mentality when offering advice for the agribusiness and farm management programs at Cowley.

“We can’t create a program and have it stay relevant for five years,” Hemberger says. “Agriculture is changing so quickly, and I can see that as I’m living and breathing it every day. MKC is very progressive and it’s awesome that we’re looking at things so far ahead. The things we’re seeing and predicting might not be available yet, but we’re getting the next crop of kids prepared for what might be coming down the road.”

www.mkcoop.com

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BY: KELLI SCHRAG, MKC COMMUNICATIONS SPECIALIST 16

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Sustainability is an extensive discipline, and one that seems to be a buzzword in today’s global climate. As society becomes more aware of its impact on the environment, sustainability is increasingly being prioritized in the business models of individuals, organizations and corporations alike. However, it takes more than simple talk to put efforts into action.

MKC innovatively created a new sustainability program aptly named SERVES. The name stems from the program’s tagline, ‘We will sustain the environment, rural communities and the vitality of MKC through education and stewardship.’

“The goal of the program is to explain, internally and externally, what sustainability means to MKC, why it’s important and how we plan to take action at the cooperative level to support it,” says Amy Meyers, MKC director of strategic initiatives and SERVES committee member.

“Sustainability is a complex idea,” says MKC Agronomy Field Sales Manager and SERVES Committee Member Troy Walker. “You could ask ten different people what sustainability means to them and come back with ten different answers. This committee is the first step to help focus MKC’s definition down to a manageable element.”

The 2020 SERVE initiatives focus on three key dimensions: environment, rural communities, and the cooperative system. The committee has designated activities to support efforts in each area, including a jug recycling project, employee volunteer program and influencer awareness plan.

“The jug recycling project is one initiative that will support our efforts to sustain the environment,” Meyers says. “The committee is still working through the specifics on what types of jugs will be collected, how they will be broken down and where this will take place.”

The employee volunteer program is an initiative idea that will put action behind sustaining rural communities. It will allow employees to explore opportunities to donate time to a community cause close to their hearts and hometowns.

Public awareness of sustainable agriculture is the goal of the influencer awareness plan. Advertisements such as the inside cover of this newsletter were placed in seven major media outlets, including The Hutchinson News, The Topeka Capital-Journal and The Kansas City Star.

“This initiative is designed to raise public awareness and shine a light on the causes and values that are important to agricultural cooperatives such as MKC and our strategic partners,” Meyers says.

Within each pillar are three tiers in which the action will take place: the cooperative level, the cooperative and farm level, and the farm level.

“Our initiatives start fully in our control,” Walker says. “Our goal is to get to the point where we can support our growers with sustainable practices.”

The MKC SERVES program will serve as the framework that guides which initiatives are chosen to take action upon by the cooperative.

“If we know what success looks like for the program, we can strategically work our way toward it,” Meyers says. “We believe success looks like being good stewards to our environment, being present and supportive in our local communities and shining a light on the value of partnering and doing business with MKC.”

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INTENTIONAL GROUNDING

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O BY: KELLI SCHRAG MKC COMMUNICATIONS SPECIALIST

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In the NFL, the playbook is a sacred, hardbound binder of trust. It’s an accumulation of decades worth of formations and plays, tweaked and perfected, all with the strategy to move the ball down the field. Every playbook is different, but the key for each coach is to sort through the options and utilize his team’s talent to ultimately find success.

Just like a professional sports team, MKC has a repertoire of industry advancements available to its memberowners, precisely recommended by trusted advisors. The MKC team is challenged to stay on the forefront of the quickly changing agricultural industry and provide guidance to help producers be intentional in the products and practices they implement in their fields.

“As the game of farming has changed, MKC is able to have different coaching staff come in, such as TMA with insurance, and other experts in marketing, precision ag and sales,” says Jon Schmidt, agronomy operations manager at Walton. “We bring different playbooks to our producer’s farms and help them pick the ‘play’ they want to do.”

Newton-area farmer and producer Edward Busenitz. Busenitz manages a 70-pair cowcalf operation and 200-head feeder pig hog operation, as well as growing wheat and corn.

After feeling like just an order at other companies, Busenitz says he reached out to the Walton MKC location to find a genuine, working relationship.

“Communication is a huge deal,” Busenitz says. “I felt at ease when first talking with Jon, and we communicate very well. He’s someone I can visit with and rely on.”

Reliability is also fundamental for Walton-area farmer Derek Klingenberg.

Most recognizable as YouTube’s Farmer Derek and the star of the infamous “White Pick-Up Truck” parody video, Klingenberg depends on strategic account manager Brandon Schrag to help him stay up to date on new and innovative technologies.

“Brandon is on top of things,” Klingenberg says. “He brings me donuts

THE FUNDAMENTALS Schmidt uses his industry expertise to assist Edward Busenitz and his son, Calvin, partner with Walton Agronomy Operations Manager Jon Schmidt to find success on their operation.

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COLUMN | NEWS | FEATURE and a plan, and I give him the thumbs-up. We would probably have to hire two extra people if we didn’t have MKC and Brandon helping us.”

Klingenberg, along with his father and two brothers, raises corn, soybeans, wheat, cattle and cats. He also partners with the Iowa-based coffee company Ross Street Roastery.

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Right: Walton-area farmer Derek Klingenberg relies on strategic account manager Brandon Schrag to stay up to date in the changing agricultural industry.

TEAMWORK Throughout the year following Busenitz’s switch to MKC, he and Schmidt built the trust necessary for a valuable business partnership. During that time, the duo also dealt with the hardships of transferring control of the farm after the passing of Busenitz’s father.

With an understanding of the farm and Busenitz’s business style in mind, Schmidt was able to recommend products and technology applicable to the operation to continue its success.

“Each farm is independent, and you learn how each owner wants to develop and lead their farm,” Schmidt says. “Some growers want to be no-till all the time, while others are conventional. You learn their style and introduce opportunities with what MKC can provide as far as new technology or with their field’s fertility.”

Likewise, Schrag learned about Klingenberg’s operation and goals by spending time on the farm and asking questions.

“I can ask him a question today and probably already know the answer, whereas I didn’t used to be able to do that,” Schrag says. “We’ve evolved to where we work as a team. We’re on the same page, and I know what he is looking for.”

PICKING THE PLAY When he’s not meeting with producers, Schrag spends time studying herbicide programs and scouting fields so he is able to recommend the best product with an economical return for Klingenberg’s operation.

“MKC takes a proactive approach,” Klingenberg says. “Since their territory expands so far south, they’re able to see what is coming and Brandon will make me aware. We’ve had years where my friends will make fun of me for doing things but then come over and ask how my fields are clean and crops look so good.”

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Right: Donuts are a staple in Klingenberg and Schrag’s meetings.

Schmidt also uses data when choosing which product or technology to advise to Busenitz. Schmidt started by testing the nitrogen availability on Busenitz’s fields and from that data, was able to form fertilizer recommendations and suggest herbicide rates and timing.

Left: Edward Busenitz’s son, Calvin, practices signing documents for his future in leading the family farm.

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FINDING SUCCESS Busenitz uses profitability as a measure of success on his operation, and says the tools and technology implemented through Schmidt’s recommendations have helped him achieve just that.

“Jon is very down to earth and has helped make my operation more profitable through the technology that we have implemented,” Busenitz says. “I appreciate him being a coach to me. A lot of things are affected by weather and we have to make adjustments as the year goes along. I appreciate that he can come and make that adjustment. If Jon wasn’t here, I really don’t know what I’d do.”

Klingenberg describes success as being efficient and utilizes MKC’s team to help make it so on his operation.

“MKC can bring two rigs and spray a lot more in a day than we could,” Klingenberg says. “I would just be grumpy the whole time. Efficiency means I can spend more time with my family.”

Outside of the typical measures of farm success, Busenitz and Klingenberg trust in MKC to be a partner they can count on and find value in the personal relationships with their trusted advisor.

A major University of Kansas fan, Busenitz gives Schmidt a hard time about Kansas State University sports.

“Every time we meet, KU and K-State is brought up,” Busenitz says.

Donuts are the common theme of Schrag and Klingenberg’s meetings.

“I’ve gained some extra weight since I’ve started working with Brandon,” Klingenberg says. “Donuts represent all the sweetness MKC brings to our farm. It feels like a party every time.”

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FOCUSED ON THE PRODUCER COLUMN BY TED SCHULTZ, TMA CHIEF OPERATING OFFICER The commodity sector of agriculture has been going through a period of high production, low prices and steady markets. The combination of these factors has led many commodity-driven companies to downsize services that directly impact producers at the farm gate level. These services are viewed as a luxury companies cannot afford, and employees and services at the farm gate are removed.

From the beginning, TMA was formed as the merchandising and logistics arms for local member cooperatives, driven by our focus on the producer.

The producer-focus begins with our commitment to providing a positive harvest unload experience. Over the years, we have expanded our services to include risk management tools to help producers create revenue-based marketing plans. We continue to invest in our risk management division, now consisting of grain marketing, crop insurance and brokerage. The risk management division focus at TMA is centered around creating disciplined enterprise-based marketing plans for producers at the farm gate.

Our focus is on making incremental changes every day that make our company easier to do business with. Most recently, we have invested in technologies to streamline our processes and provide access to data to ultimately improve the customers’ experience.

In June 2019, we released the TMA App that revolutionized our producers’ experience. Our mobile app provides our customers with easy access to

account information. With the click of an icon, contracts and delivery tickets can be accessed. The ability to check out bid sheets and market information is also at your fingertips. Furthermore, users can see the scale in and scale out times, phone numbers and addresses for each of our locations. Producers also can give guest access to their account, so spouses, children, and farm managers can have insight into the business. We recognize this type of technology is valuable to our customers and continue to add functionality to the app, releasing upgrades several times throughout the year.

As part of our digital transformation, electronic signatures are now a reality. At TMA, we will utilize digital signatures for grain marketing, crop insurance and next generation programs. The adoption of e-signatures allows producers to better manage contracts, quickly sign and return documents on the go from places like the field or your tractor. Digital signatures allow for greater transparency in seeing your contracts immediately compared to waiting on the mail. No longer will you have to manage mountains of paperwork and sort through what needs to be signed. Most importantly, this digital technology improves the ease of doing business for our customers.

In a world that is constantly evolving and moving faster than ever, it is easy to feel overwhelmed.

Always remember, TMA is here to guide you as your operation evolves, minimizing risk and maximizing profit.

MEET THE

APP We’ve built a handy mobile app that allows you to easily access your account information with us on-the-go wherever you are.

Check-out bid sheets and market information.

View your contracts and delivery tickets from the field, the office or the shop.

DOWNLOAD THE 22

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APP TODAY!

COLUMN | NEWS | FEATURE

NEXT GENERATION KNOWLEDGE

BY KELLI SCHRAG, MKC COMMUNICATIONS SPECIALIST

As the average age of the U.S. farmer continues to rise, young producers are stepping up as decision makers to help feed a booming global population. This was evident as over 80 producers and guests gathered in Manhattan, Kansas, for MKC’s seventh annual Emerging Producers Program. The event is designed for producers ages 22-40 and provides opportunities for attendees to learn from industry professionals, network with other producers and gain knowledge on new technologies to better their operations.

“We created the Emerging Producer Program to provide the next generation of farmers a place to learn and network with other individuals who are facing the same challenges,” says Kent Nichols, MKC agronomy field sales manager. “These times of tremendous opportunity and risk in agriculture make it paramount for farm operations and families to network together and plan for future success.”

During the two-day program, MKC employees helped facilitate a learning environment by actively engaging with producers and presenters and participating in table-group discussions. The first day included presentations by Brett Bruggeman, Winfield United president; Melissa Hildebrand-Reed, Hildebrand Dairy Farms operations manager; and Matt Roberts, founder of the Kernmantle Group.

From these experts, attendees learned about digital engagement, marketing the farm, and the agricultural economy. Following the presentations, producers and guests enjoyed a social hour, steak dinner and entertainment by agricultural comedian Tim Moffett.

Chris Thompson, MKC strategic account manager, Brian Briggeman, director of the Arthur Capper Cooperative Center, and Zach Vavak, regional digital technology manager for Winfield United, presented on the second day. The topics covered include cover crops and soil health, the cooperative model, and the Winfield United Atlas portal omni-channel solution.

The program concluded with an inside look from the President’s bunker during 9/11 from Lt. Col. Robert J. Darling.

“Over the past seven years we have received feedback that this program has helped young producers build relationships with others outside their area and provide a broader network for them to share ideas with,” Nichols says. “We are excited to continue growing this program to fit the needs of our emerging producers.”

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

Women’s Meeting LADIES, DON’T MISS THIS ANNUAL EVENT!

GUEST SPEAKER

Lesley Kelly

Breaking Barriers in Agriculture: Can you imagine having one conversation that can save someone’s life?

After sharing a live video of Lesley and her husband’s mental health stories that created a conversation within and outside agriculture and around the world, Lesley shares what sparked them to create the video and co-found the Do More Agriculture Foundation. She will share their road together on mental wellness, how it’s helped them, their team and farm, and the power behind how one conversation can break barriers, change a culture and help save a life.

Facebook/Instagram | @highheelsandcanolafields

TUESDAY, APRIL 21

REGISTRATION BEGINS AT 5:30 PM | DINNER AT 6 PM

NEW LOCATION! MERIDIAN CENTER | NEWTON

RSVP by April 15 at 620-345-4149 or

https://mkcwomensmeeting.eventbrite.com RSVP online and be entered into a drawing for a $50 Cenex gift card!