The Cover Crop A Quarterly Magazine for Servi-Tech's Owner Cooperatives spring 2017 Edition
On the right track
annual meeting recap
Servi-Tech's annual meeting took place March 7 in Salina, and included a new location, a new meeting agenda and a new look.
By Greg Ruehle President and CEO I am writing this column on the heels of Servi-Tech’s Annual Meeting, held March 7 in Salina, Kansas. There were a number of new faces in the room as a result of the more centrallylocated meeting site. My thanks to everyone who attended. In addition to the new venue, this year’s meeting agenda was also revised from past. I invited staff representing key ST leadership positions from throughout the company to attend, in order to introduce them to our owners and to explain their new products and services firsthand. And rightfully so, they serve as our experts. We also welcomed staff who were recognized by their peers in Crop Service (Leadership Award and
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Agronomist of the Year Award winners), as well as our first 40-year employee and 500,000 acre crop specialist. This form of recognition is critical internally, and validates the importance of our relationship with our coop owners. The ballroom included booths with tangible demonstrations of several new offers in precision ag regarding in-field sensors, hyperlocal weather information, scouting applications and tools to help growers determine their return on input investments and evaluate actions to improve profitability.
remarks concluded. My remarks to the owners included reviews of customer survey data, an overview of the changing competitive landscape for cooperatives, and highlights from the new ST strategic plan. You can find more details in my separate article (titled Coopetition) a few pages further back in this publication. Overall, I am pleased to report that Servi-Tech maintains a strong financial position as it delivers an exciting array of new products and services to our owners and
Rest assured that you will be seeing a more dedicated and coordinated Servi-Tech presence in your trade area! - Greg Ruehle President and CEO
We also featured Dr. Barry Flinchbaugh with Kansas State Ag Economics as our keynote speaker. Barry sought to outline his perceptions from the 2016 elections, as well as his outlook for farm policy including the 2018 Farm Bill. He definitely did not disappoint, and if you have ever heard him speak before you know what I mean – savvy candor seasoned with a historical perspective. He was a huge hit, and “held court” with attendees for more than an hour after his formal
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patrons. We have committed to continue building (or rebuilding) relationships with our owners, with a goal of significant revenue growth in the near future. Rest assured that you will be seeing a more dedicated and coordinated Servi-Tech presence in your trade area! I was disappointed with one aspect of the Annual Meeting – attendance. Until such time as we see all owner coops well represented at this meeting, I will not be satisfied.
Servi-Tech, Inc. Servi-Tech was formed in 1975 by three farmer-owned cooperatives that saw a need to provide technical services for agricultural producers in southwest Kansas. Servi-Tech is organized as a federated cooperative owned by 60 farmer-cooperatives across six states. In the 41 years since our founding, we have expanded into Colorado, Nebraska, Iowa, Oklahoma, Missouri, Minnesota, Texas and South Dakota. Servi-Tech began with 100,000 acres under contract in 1976. Today, we provide consulting on almost 1 million acres on behalf of both individual growers as well as cooperatives of all sizes.
Above: About 30 people attended Servi-Tech's annual meeting in Salina on March 7. In addition to the yearly business meeting, representatives of the cooperatives who attended also got a chance to view Servi-Tech's latest technology offerings, including ProfitZones, CropView, and a sneak peek at a new product that Servi-Tech Expanded Premium Services will launch later this year. Photo by Jeff Kugler Cover: The Servi-Tech board of directors, as pictured at the Annual Meeting. Back row: Tim Burkey, Ted Glock, Dennis Rickertsen, and Phil Ramsel Front row: Jeff Jensby, Clifford Alexander, and Jerald Kemmerer
Since our founding, Servi-Tech has been dedicated to providing growers and cooperatives with the solutions they need to make more productive decisions in the field. Combined with the new technology developed through Servi-Tech Expanded Premium Services, LLC (STEPS); our precision ag experts; and the world-class laboratories in Dodge City, Kansas; Hastings, Nebraska; and Amarillo, Texas; Servi-Tech provides the ultimate in agronomic knowledge for cooperatives and growers alike. To learn more about how Servi-Tech can help you serve your growers, visit us online at servitech.com for the full list of services, or call us at 1-800-557-7509.
EXECUTIVE MANAGEMENT TEAM Greg Ruehle
President and CEO greg.ruehle@servitech.com 1-800-557-7509 ext. 1215
Jeff Hiers
Chief Operating Officer jeff.hiers@servitech.com 1-800-557-7509 ext. 1214
Jeff McDaniel
Chief Financial Officer jeff.mcdaniel@servitech.com 1-800-557-7509 ext. 1201
Randy Royle
Chief Laboratory Officer randy.royle@servitech.com 1-800-557-7509 ext. 1110
Steve Soden
Chief Crop Service Officer steve.soden@servitech.com (308) 340-5997
Jeff Kugler
CEO of STEPS, LLC jeff.kugler@servitech.com 1-800-557-7509 ext. 1199
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To Submit Content: Monica Springer
Communications Specialist monica.springer@servitech.com 620-801-4147
Kaci Davignon
Communications Specialist kaci.davignon@servitech.com 620-801-4134
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Increase your
PROFIT Ryan Meister with STEPS looks at a corn plant last year in Nebraska. ProfitZones is a program available to retailers that works on increasing the profit on a farm, not just the yield us a way to put an actual dollar amount of how much this costs us.” In that same milo field, Colle said he wouldn’t have thought that the producer lost money growing milo that averaged 111 bushels an acre. “We robbed ourselves of 10, 20, 30 bushel,” he said. “At $2 a bushel, that’s $20 to $60.” Some “bad” spots in fields can’t be fixed. In other spots, Colle said it might be a different soil type in one area of the field. Using ProfitZones, a low-budget crop could be put on those acres, like alfalfa or wheat, Monica Springer the field, around 42 acres, that are instead of trying to grow largeCommunications Specialist was producing well below average volume cash crops on it. yields. “Let’s stop dumping money in Servi-Tech has a new return on “That spot was in the 80s to 110. areas that aren’t investment tool that returning it,” is now available to This tool could be the difference between having a farm Colle said. cooperatives. Called next year or not in some cases. “ProfitZones ProfitZones, its goal is - Mark Morten gives you an idea, to maximize your profit, Servi-Tech Crop Consultant instead of just not just your yield. throwing darts at We sat down with two a dartboard and seeing what sticks.” Servi-Tech agronomists to get their We were losing money on it,” Colle The data that ProfitZones uses thoughts on the new product. said. “Those spots are where our pH comes from a producer’s farm. Most The first is Ben Colle, a crop map started to get low.” combines have GPS and ability to consultant in Inman, Kansas. Initially, Colle suggested to the map yields today, but producers Colle said he was hesitant to use producer that he apply lime to fix don’t necessarily utilize that data. it at first, but changed his mind after the pH in that spot. “These companies did a great job he experimented with ProfitZones. “Let’s focus on the bad spot and of selling that yield monitor that He had a producer in mind, and try to get it up to speed so it stops sits in their combine,” Colle said. “It he entered that producer’s data into dragging the whole rest of the field the program. In a field that had down,” he said. “As agronomists, we makes them a nice, pretty map that 111-bushel milo, there was a spot in know where to focus. This just gives has colors and numbers, but they
Is your goal to maximize yield or profit?
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don’t utilize it. Why pay $10,000 for something if you don’t take advantage of it?” Colle added: “I think retailers can utilize this in a way to say, ‘Here’s what we can do to try and help you save money. Next year, when we have a little bit more free money, then we can fix the rest of the problem correctly. If nothing else, let’s just fix one spot. Instead of 160 acres needing fixed, maybe it’s just 40 acres that needs fixed.” Another Servi-Tech crop consultant that has found value in ProfitZones is Mark Morten in Kearney, Nebraska. He said his favorite part of the program is being able to see the different scenarios –
what producers have done in the last growing season, and then plan for the next year. “ProfitZones puts it in black and white what this is going to do for you. A lot of products can’t do that,” Morten said. In an economy that isn’t necessarily thriving, Morten said it’s important to look at programs like ProfitZones that can help control costs. “What better time than now to try and find a better way to manage your money?” Morten said. “This tool could be the difference between having a farm next year or not in some cases.”
Why ProfitZones? Understand where you are making money and where you are losing money. Test out different scenarios to improve the profitability of your farm.
Understand how changes in management affect the profitability of your field
Create smarter management zones for your valuable inputs. Make the goal maximizing yield, not just maximizing profit.
Taking these acres out of production increases the total farm profit.
Whole farm performance summary: Find out how your fields compare to each other in terms of input, profit, and efficiencies.
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Prestigious awards
EARNED
Jeff Kugler earns Servi-Tech’s first-ever 40-year service award Jeff Kugler of Manhattan is Servi-Tech’s longest serving employee. He earned the company’s first ever 40-year service award during a recognition ceremony in Kearney, Nebraska recently. Kugler has worn many hats in the company throughout the years. Now, he is CEO of Servi-Tech Expanded Premium Services, LLC, (STEPS) which is Servi-Tech’s technology arm. “Jeff has devoted his entire adult life to making our company better. That is amazing,” said Ted Glock of Rising City, Neb., who serves on Servi-Tech’s board of directors. “This award is a great honor for him to receive, and it’s well deserved.” In the spring of 1976, Kugler was finishing up his master’s degree. He interviewed with several companies, but none seemed to be the right fit for him. Meanwhile, Servi-Tech left word with the Kansas State University agronomy department that it was looking for agronomists. “Servi-Tech needed people and I needed a job, so that’s how my career started,” Kugler said. In 1976, a Servi-Tech crop service vehicle was a Jeep CJ-7, with no air conditioning and crank down windows. Agronomists communicated with their customers via landline phones, personal visits or by mail. He started as a crop specialist in Pratt, Kansas in 1976. He was then a division manager in Kansas and Nebraska, and was promoted to regional manager to 6
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eastern Nebraska and Iowa in the 1990s and 2000s. Servi-Tech itself is 42 years old and now employs approximately 200 people in five states (Kansas, Colorado, Nebraska, Iowa, and Texas). In recognition of his service, Servi-Tech gifted Jeff and his wife, Joan, a trip to see the leaves changing this fall in the Northeast U.S., something that’s been on their bucket list for years. Tim Burkey, who serves on the Servi-Tech board of directors, said Kugler is a friend and was a crop consultant on his family’s farm for three generations. On Wednesday mornings, Burkey and his father would have the “Hey, Jeff is here” meeting. At the end of the crop year, there was a “This will be your last irrigation round” meeting with Jeff, and they would cheer afterwards. “Jeff is a great, intelligent, dedicated human being,” Burkey said. “Congratulations, and many more years to him.” Burkey said his son, Brant, is now working with Kugler in a joint venture with STEPS. Orvin Bontrager, a technical service agronomist with Servi-Tech based in Aurora, Neb., has worked for Servi-Tech 39 years and has known Kugler just as long. “He’s mentored a lot of agronomists over the years, not only in our company, but across the High Plains,” Bontrager said. “Seed companies, chemical companies, and extension agents have learned a lot from him over the years.”
Steve Kramer sets new milestone: 500,000 acres Steve Kramer of Stromsburg, starting their career. Nebraska, has consulted on more “Find something that you enjoy acres than any agronomist in doing so it doesn’t feel like a Servi-Tech’s history. job. Don’t be afraid to ask those Kramer was honored with a around you for help.” Kramer said. 500,000 acre award at Servi-Tech’s “I would recommend this job to annual Professional Development anybody who loves agronomy Conference, which was held in and who loves working with Kearney. progressive growers.” This is the first time that a Kramer consults on corn and 500,000 acre award has been soybeans most, but also consults given. on alfalfa and grain sorghum. “I want to thank Servi-Tech for He’s a member of the American the opportunity to work for them. Society of Agronomy and is a I’ve enjoyed the past 32 years,” Certified Crop Adviser. He and Kramer said. his wife, Pam, have two sons, Dale Kramer started with Servi-Tech Kramer and Paul Kramer. in May of 1984, which is the first “It’s a tremendous year that Servi-Tech consulted accomplishment for someone to on fields in Nebraska. Back then, have that kind of commitment there were six Servi-Tech agronomists in Nebraska. and dedication,” said Ryan Hassebrook, Servi-Tech’s Today, there are 40. eastern Nebraska manager. A lot has changed since 1984. He continued: “Steve sets an example for our entire “I was here territory and before cell our entire Steve sets an example for our entire territory and our phones,” Kramer company entire company through his dedication to customers, their joked. “And I was through his profitability, their success and their livelihood. here before the dedication to internet.” customers, - Ryan Hassebook Kramer said a their Eastern Nebraska manager lot of the reason profitability, he’s stayed is their success because of his customers and co-workers. and livelihood.” “I really enjoy both of those,” he said. Additionally, Hassebrook said younger staff and The challenges he’s faced as an agronomist include interns look up to Kramer for advice and support. changing grain markets and the down cycle in the “My hat's off to him and I salute his efforts over the economy, which he’s faced several times in his career. last 34 years with our company,” Hassebrook said. He also has some advice for agronomists who are just Spring 2017
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Servi-Tech’s IT department busy helping cooperatives in the field Agriculture plays a significant role for economic and System). Quite often lab results also need to be social development in most states. Here at Servi-Tech, submitted electronically into external systems. Every we do that and more. Not only does our team consist integration project is different; it all depends on the of agronomists and lab technicians, but we have many customer’s needs. more departments that aid in the success of Some of these needs include having the capability Servi-Tech. to utilize integration with GIS providers. This One such department is IT. Their role is pivotal in means importing and storing sample or site-specific the organization. The IT department consists of 10 identifiers that facilitate the reporting of thousands people, all of which are in our three lab locations: of lab results efficiently via web services or email. Hastings, For example, Nebraska, Dodge Servi-Tech We are more than willing to talk with a company to discuss agronomists City, Kansas and Amarillo, how we can work together to make their processes easy and collect Texas. Managed thousands of profitable. -Winston Broce by Winston grid samples Broce, Director for ag retailers of Programming every year. and Web Development of the IT department, Broce Most of these samples are accompanied by SST makes sure customers of Software barcode sheets. Each barcode sheet has QR Servi-Tech can not only use our software, but integrate code and a barcode with an event ID that uniquely it within their identifies the producer, systems. farm, field and soil “Our team consists sampling operation of programmers and that the samples belong networkers, all who to. Soon after the lab do a phenomenal reports are approved job of building and for these samples, the creating systems lab results are quickly to help not only uploaded to the cloud. Servi-Tech, but our This is thanks to Servicustomers,” says Tech’s integration with Broce. SST Software. These lab Currently, results are subsequently customers can read delivered back to SST a laboratory results customers when they sync via hardcopy or in an their mobile devices or electronic or digital desktops. format. However, other customers who want more Our IT department has also completed integration from the laboratories want integration. This includes with some large feed manufacturers. This often entails creating workflows that make sample information importing and reporting of key information such as travel seamlessly from customers’ computer systems date sampled, ingredient name, ingredient source, into our LIMS (Laboratory Information Management See IT, page 9 — 8
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Patronage dividends & equity retirement By Jeff McDaniel Chief Financial Officer As a cooperative, Servi-Tech distributes patronage dividends to our Common and Preferred stockholders. We currently have three categories for patronage: Contracted Crop Service Acres; Laboratory Testing; and Precision Ag and Non-Contract Consulting Services. Common Stock membership requires a one-time investment of $10,000, and may only be purchased by a cooperative, or an entity that is primarily owned by a cooperative. Common Stock members have voting privileges, and receive patronage in all three of our patronage categories. As a Common Stock member, you are entitled to receive patronage on any acres contracted with Servi-Tech by members and patrons of your local cooperative. Preferred Stock members have no voting rights, and are excluded
from the Contracted Crop Services Acres patronage category. Typical members in this category are those who do a significant amount of laboratory testing with Servi-Tech. Many are local cooperatives that are not within areas where we currently provide agronomy services, but still see the value of receiving patronage on the other services we can provide to them. Others are cattle feeders and feed manufacturers that require a significant volume of feed testing information in their operations. Although Servi-Tech was founded in 1975, patronage dividends were not paid to members until 1981. Thanks to the patience of the cooperative membership, the minimum amount of cash patronage was paid for several years, which provided additional capital for the growth of the company. Over the years, our board of directors have gradually increased our cash patronage to its current rate of 40%. As Servi-Tech continued to grow and develop a sound financial
IT from page 8 — destination, truck/railcar, batch number, ship date and sample origin. Reporting this information together with the lab results allows easy tracking of samples and the lab analysis in a large enterprise, thus effecting the return on investment. Servi-Tech also works with nutritional prescription services like NutriScription and NutriSolutions. Our computer system downloads information submitted by mobile app users and uploads analysis results electronically so customers can receive customized recommendations from these companies via email in a timely fashion. Integration or automation doesn’t have to be complex. It can be a weekly email with billing information in a spreadsheet, an invoice summarized by producer or a feed analysis report in a standard XML format. All of
position, the decision was made to begin the retirement of deferred patronage (equity credits). From 2013 to 2016, a total of $2.16 million in equity credits, for the years 1981-1996, was returned to the membership. For our fiscal year which ended September 30, 2016, distribution of $309,300 in patronage dividends has been approved. Forty percent of this total, $123,700, will be paid in cash. These checks were distributed at our annual stockholders meeting on March 7, in Salina, Kansas. Also approved was retirement of deferred equity credits from our 1997 fiscal year. Payments totaling $186,000 will be distributed later in the year. If you have any questions or concerns regarding your Servi-Tech membership and/or your equity balance, please contact our CFO, Jeff McDaniel, at 620-801-4138, or at jeff.mcdaniel@servitech.com.
these solutions save our customers time and money. Why integration, you may ask? The problem with handling lab results manually is that one can import the wrong file, type in the wrong data or simply waste time doing a job that computers can do pretty easily and accurately. Our goal is to help our customers make the most out of the lab analysis they pay for. Electronic handling of data is just one way Servi-Tech empowers our customer to make a return on their investment through lab analysis. “Servi-Tech is capable of importing, tracking and reporting any supplemental information that adds value to your operation," Broce said. “We are more than willing to talk with a company to discuss how we can work together to make their processes easy and profitable.”
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Limited check
SERVICES Tailored to your needs By Monica Springer Communications Specialist
Reasons to choose aerial imagery for your farm
See short-term condition or events in the field, such as: - Irrigation problems or inconsistencies - Application errors - Weather damage - Insects - Diseases - Nutrient deficiences
See long-term field trends, such as: - Soil properties - Compaction problems - Land use history
Types of imagery: - Native Color - ADVI - Thermal
Yield estimates Easy to use website and app: Compare imagery side-by-side; export data in multiple formats; view your position in the field real-time; download prescription files
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Traditional crop consulting isn’t always in the minds of producers in dryland wheat country. But in north central Kansas, one cooperative is partnering with ServiTech to offer limited check services – oftentimes five checks per growing season – to its producers. And the results are working. “We like the program. We like the flexibility,” said Jeff Jensby, vice president of agronomy at Farmway Coop in Beloit. “The quality is very good, and they get the entire ServiTech network.” Jensby, who also serves on ServiTech’s board of directors, said the limited check program benefits Farmway Cooperative. Farmway’s mission is to help their Jeff Jensby owners succeed. “We’re bringing them services that help, that they invest in, and have a good return on their investment,” Jensby said. He added that Farmway is strong in agronomy, but partnering with Servi-Tech means they are better able to plan for and work with growers as various situations occur. “We like to be tied in with the Servi-Tech agronomy network,” Jensby said. Custom limited check packages can be set up according to a cooperative’s or a customer’s needs, said Rick Runyan, Servi-Tech’s central Nebraska manager. Rather than having an agronomist do weekly field checks, an agronomist will check anywhere from five times to 12 times per growing season. Limited checks can target a specific need, like pest or weed control, and can help immensely, Runyan said. In and around Beloit, Farmway Cooperative uses Servi-Tech’s limited check services on wheat, dryland corn, soybeans and grain sorghum. “We look at it as a consultative team approach to help the owner succeed,”
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Jensby said. “We try to make sure our Servi-Tech consultant is the right-hand person for our coop.”
"TerrAvion's flights cover larger areas in a much more reliable and cost-effective way than drones or satellites ever could," offered Greg Ruehle, President & CEO for Servi-Tech, Inc. "We are excited to team up with TerrAvion to give our customers the information they need through aerial imagery to make more informed decisions around irrigation, soil quality and the health of their plants so they can improve their yield each season."
fields and make recommendations to their customers. "It gives them more information on the fields," Runyan said. "Their time is limited to go out and scout fields, so this program gives them a steady stream of info coming in about their customers' fields."
Aerial Imagery Runyan said with the innovation of technology, agronomists can monitor a field without being in the field on a weekly basis. "Limited checks paired with aerial Iowa imagery go together well," Runyan In Iowa, about half of Servi-Tech’s said. crop consulting business comes Servi-Tech is offering a new from limited check services. aerial imagery Norb Boyle, program this Servi-Tech’s Iowa We try to make sure our Servi-Tech consultant is the year. CropView manager, said right-hand person for our coop. lets producers because Iowa - Jeff Jensby get a better uses no irrigation Vice President of Agronomy, Farmway Cooperative view of what’s systems, there’s happening in not a need for crop the field from consultants to be in the top down. fields every week. Servi-Tech partnered with Advantages of Limited Checks “It’s still an opportunity for a TerrAvion, a company based out Another advantage of the limited customer to get our services in front of California, which uses manned check service is that it's cheaper of them,” Boyle said. aircraft for its flights. to customers, because a crop He said crop consultants in Iowa The flights offer three different consultant isn’t doing weekly checks offer a variety of limited check types of imagery: natural color, on their fields. packages, from two, four, or six which is how the field looks to Still, though, an agronomist is on checks to crop checks every other the naked eye; Normal Difference the ground, seeing what issues those week. Vegetation Index (NDVI), which fields have. “We can tailor a package to uses near-infrared light; and "It's having some agronomy boots whatever a grower needs,” Boyle thermal infrared, which shows that on the ground verses not having said. healthy plants are cooler and lighter boots on the ground," Runyan said. Oftentimes, a Servi-Tech in color because there is more For cooperatives, every time consultant will check corn one transpiration. Servi-Tech consults on a field, week, then beans on the next check. "TerrAvion is providing us with a whether it be every other week, “We’re always looking at different new way to give our growers NVDI, eight checks or three checks, that acres and different spots,” Boyle thermal and color images, and cooperative gets copies of those field said. “It saves them a little bit display them in our data portal," reports. of money and it gives us some said Jeff Kugler, CEO of STEPS. It is then up to the cooperative's flexibility.” LLC. agronomy sales staff to manage the
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Coopetition
The act of cooperation between competing entities By Greg Ruehle President & CEO “Coopetition” was specifically selected as the title of this article, to coincide with my presentation at the recent Servi-Tech Annual Meeting. Coopetition is defined as “the act of cooperation between competing entities, where certain businesses gain an advantage by using a judicious mix of cooperation with suppliers, customers and firms producing complementary products (Investopedia). Coopetition is frequently seen in technologyoriented industries where rapid technological advances will often encourage competitors to work together where crossover exists between technologies" (Webopedia). I must admit I was surprised to learn that the term I believed to be a mash-up of two distinctly different words – cooperation and competition – had a printed definition. I am even more pleased that this definition accurately portrays the relationship many of our owner-coops believe they have with ServiTech. Part of my CEO report at the annual meeting addressed the relationship we have with our cooperative owners. I highlighted the results of a ST-commissioned survey of ownercoops regarding their perceptions about and relationships with Servi-Tech. I wrapped up by highlighting the recently-drafted strategic plan, and several new technology and precision ag offers that could benefit our owner-coops. Competitive Landscape Three slides in my presentation showed the extent of merger and acquisition activities in three prominent states in our footprint: Iowa,
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Kansas and Nebraska. I have included those three visuals in this article as well. As you well know, the days of geographic isolation and protected territories is long gone. Cooperatives grow organically through solid business relationships with their patrons, along with growth resulting from the acquisitions of neighboring coop businesses and locations. Servi-Tech must do a better job of acknowledging these changes, and adapt to the “new” cooperative environment that results from these growth and acquisition efforts. Owner Perceptions A survey of coop-owners was commissioned by Servi-Tech in the fall of 2016. The surveys were conducted through phone interviews with a variety of coops – large and small, those who were actively working with Servi-Tech and those who had virtually no exposure to our services. A summary of my key take-aways from the survey data includes the following observations: 1. Coops who utilize ST services have a good opinion of their relationship. 2. Coops who do not have a relationship with Servi-Tech do not see how doing so would benefit the cooperative – what’s in it for me? 3. The independence of Servi-Tech’s consultants can be a barrier to growing the coop’s business, unless all parties have communicated what products are available and why they were selected. 4. Communication by Servi-Tech with its owners has been poor and must be improved.
See Coopetition, page 14 —
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Nebraska coop locations
Kansas coop locations
Iowa coop locations
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Coopetition from page 12 — ST Strategic Plan Four P’s Partnerships – while an independent company, we benefit from collaborative relationships with others
articles, and have good profit potential in partnership with Servi-Tech. Traditional programs around soil sampling (composite, zone and grids), soil testing, variable rate mapping, VR seeding recommendations, yield maps and data analysis are also key
offers that remain in place today. Crop scouting (full-season or limited check), recommendations for weed and/or pest control, and a host of additional services are available – talk with your sales representative, or call me directly.
Progressive – we must be forwardlooking with respect to new services for our customers and owners Profitability – allows ST to pay patronage, and maintain a competitive salary and benefits package. People – we are a service-oriented company that values its people, and strives to help them maintain an appropriate work/life balance Partnership Offers for 2017 Two product offers were featured as I closed my presentation: CropView (imagery) and ProfitZones (ROI). Both have been discussed in past
Top: Servi-Tech employees and member cooperatives listen to presentations at Servi-Tech's annual meeting, which took place in Salina on March 7. Bottom left: Orvin Bontrager, technical support agronomist, and Jeff Kugler, CEO of Servi-Tech Expanded Premium Services, LLC, pose for a photo at Servi-Tech's Annual Meeting. The two have a combined 79 years of service at Servi-Tech.
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Dr. Barry Flinchbaugh, Kansas State University, spoke at Servi-Tech's Annual Meeting.
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Servi-Tech Board of Directors
Get to Know: Phil Ramsel
How long have you been on the Servi-Tech board of directors? One year.
Tell us a little about yourself. I was born and raised in Nebraska. I grew up in six different Nebraska communities. We lived south of North Platte, Neb. for the longest stretch on the University of Nebraska Dryland Research Farm which my Dad managed. I graduated from the University of Nebraska-Lincoln with a BSBA in agribusiness. I worked for a few different crop consultants, Northrup King, and for Monsanto in a large multi-state research program during college and afterwards. I went back to college to pursue my graduate degrees in agronomy at Iowa State University graduating with my M.S. in 2001. I took a position with the Sully Coop in Newton, Iowa as a senior sales agronomist where I worked with over 100 farms accounts. We had a Land O’ Lakes (WinField United) Answer Plot. I got to know the Land O’ Lakes personnel well. They had planned to launch the Answer Plot System into the western Cornbelt, and knowing that I was from Nebraska, they asked me if I would be interested. I started with Land O’ Lakes in 2004. I launched the Answer Plots into Nebraska, Kansas, Oklahoma, Missouri, Colorado, and South Dakota. I managed the crew that did the planting, spraying, and harvesting. I also did 50-80 training sessions per year. In 2008, I transitioned into a full-time training role where I did sales agronomist training in Nebraska, Kansas, Colorado, Wyoming, Utah, Idaho, Washington, Oregon, and California. My wife and I started our family in 2008. A few years later, I decided to pursue a team management role again and found a position with Cargill AgHorizons. I managed a portion of the sales agronomy team for
Cargill. We saw good growth in the territory that I was in and I enjoyed the people development. I came to Cooperative Producers, Inc as the vice president of agronomy in 2015. My wife, Christine, and I live with our family in Grand Island, Neb. Christine is an elementary special education teacher for Grand Island Public Schools. A lot of our spare time is centered around our family. I’ve coached 23 different little league teams in the past four years (soccer, baseball, flag football, basketball, and softball).
on partnerships.
What excites you most about ServiTech and the upcoming future? Servi-Tech has always been a high service organization. There has been many changes in agriculture over the past 40-years which the company has adapted to. Servi-Tech has a lot of partnering ability to serve local agriculture and a vision of expanding
How has Servi-Tech benefited your cooperative? One of my biggest initiatives at CPI is improving the ability of our sales agronomy team. We partnered with Servi-Tech to provide the soil sampling service and lab service that our sales agronomy team needs to help our customers make the right decisions in their farming businesses. Servi-Tech has been able to adapt to the weather and field conditions in helping us obtain the soils information. We’re now looking to combining Servi-Tech’s high service culture with more offers in our agronomy department. We’re also working to help our team understand the service level of crop services and how that could benefit them and their customers. Where we live in an ever increasing information world, having more information at your fingertips helps increase productivity rapidly. We see Servi-Tech as a partner in helping our team capture more quality information to help our customers make better decisions.
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The lab
REPORT Q & A with lab customer Conestoga Energy What is your title of the position where you work? I am the Vice President of Marketing for Conestoga Energy. How long has your organization done business with Servi-Tech? We have been doing business with Servi-Tech since we started business in 2007
This has enabled us to move away from the by-product mentality many ethanol plants have about distillers grains to a true co-product that adds value to our customers.
How does Servi-Tech help you grow your business? Our customers really appreciate our transparency of results and have confidence in the numbers we send them
What attributes of the labs are most beneficial with your business? The focus on quality control and customer service is the best we’ve seen. The customer service representatives and lab techs really know our business.
How do you utilize your data from Servi-Tech labs? We use this data to validate our in house results and dictate how we run our ethanol plants.
How has the Servi-Tech laboratories helped your business with success or in general? Matt Durler Servi-Tech has helped us by providing consistent reliable results in a timely manner.
Why do you choose Servi-Tech labs over other labs? We chose Servi-Tech because they did the best in the result consistency in the double blind samples we sent them and have excellent customer service.
Listen to our podcast! Once a week, Servi-Tech talks to radio host John Jenkensen on various issues within the agriculture industry. The podcast is updated each Friday. To listen, like us on Facebook, follow us on Twitter, or go to our website, servitech.com
Facebook: facebook.com/servitech
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On the web: servitech.com
Lab employees in Dodge City, Hastings and Amarillo recognized for years of service awards A number of Servi-Tech Laboratories employees in Dodge City, Kan., Hastings, Neb. and Amarillo, Texas, received recognition recently for their years of service. The following awards were given: • Debbie Hertel, Dodge City, recognized for 35 years of service • Cindy Orebaugh, Dodge City, recognized for 35 years of service • Brenda Rowley, Dodge City, 25 years of service award • Janis Denton, Dodge City, 10 years of service award • Wilma Collett, Hastings, 20 years of service award • Daveta Brader, Hastings, 20-year service award • Shirley Peters, Hastings, who retired from ServiTech in July 2016, was also recognized with a 20year service award • Jill Bogner, Amarillo, 15-year service award • Corey Lapka, software developer in Hastings, received a 15-year service award • Joe Young, computers/network system administrator in Hastings, 10-year service award Dodge City Lab “I’d like to express my gratitude and admiration for these four ladies in Dodge City who have reached individual milestones in their careers at Servi-Tech,” said Steve Harrold, Dodge City Lab Manager. In her 35-year career, Orebaugh has run tests on soil pH, organic matter, sunflower testing, and soil nitrates, along with running other tests. Hertel has worked in the laboratory and in customer service, and her duties have included billing and running many tests in the lab, including soil pH, fiber tests, manure dry matter, and others.
Cindy Orebaugh, Brenda Rowley, Debbie Hertel and Janis Denton were given years of service awards at the Dodge City laboratory Also pictured is Randy Royle, Chief Laboratory Officer.
Rowley has worked in sample receiving, customer service, and in the laboratory running soil pH, crude protein, and other tests. Denton has worked in the lab reading soil pH and salts.
Hastings Lab Brader works in the customer service department and logs in all soils, fertilizers and plants. Collett started as a part-time lab assistant and has grown into a position that includes running various soil, water, and wastewater tests. “Daveta is a great liaison for the lab to our clients,” said Nancy Jenny, Hastings Lab Manager. Shirley Peters, of Hastings, who retired from Servi-Tech in July 2016, was also recognized with a 20-year service award. Peters worked on the customer service team and logged in and reported environmental samples and helped with feed set up.
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News from around
Servi-Tech Southwest kansas We started out the year with a good old fashioned ice storm. The ice caused a lot of power outages and inconvenience, but did bring some good moisture to the area; 2.5 to 3 inches around Dodge City. In the northwest part of our territory, the moisture has not been so generous. They received only about ¼-1/2 inch since December. On the east side of our territory, the moisture has been good in December and January, but has dried off some in the upper profile. There is some concern of a continued dry trend into the spring season. The wheat appreciated the ice storm. With ice there is no runoff, so all of the moisture stayed put. The wheat is looking a little rough in some parts of the territory and has emerged quite inconsistently in the dry land acres. Within a field, emergence is ranging from 8 plus tillers to just germinating and still underground. The wheat in the last couple weeks is really starting to green up early, with the warm and sunny weather we have had in February. The winter has been pretty mild this year with only a few cold days to slow down composite and grid soil sampling. The composite soil sampling is tapering off with just a few fields trickling in with the few late contracts. The spray rigs are starting to roll in the last few weeks. The fertilizer is getting applied when the weather allows. The crop service staff has attended many meetings this winter trying to stay ahead of the new technology in the fight against weeds. Lower commodity prices have growers seeking ways to maximize production and increase efficiency while keeping costs down. The staff is already scouting acres as
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the wheat is greening up early across the territory and the producers need their herbicide recommendations. Crop service is also rolling across the corn acres to start our burndown and early preemerge herbicide recommendations. With the rollout of the CropView and ProfitZones the agronomists and sales staff have been pounding the pavement hard to introduce these new opportunities to both retailers and producers.
Eastern colorado The staff is wrapping up the meeting season with last updates on chemical label changes and information about new products coming to market. We still have a substantial number of customers that we worked with last year that haven’t committed for this year. Generally economics is driving most of that delay. We are about at the same income level at this time of the year as in 2016. As those accounts get firmed up, it should push us closer to the budgetary goals for 2017. The staff are working on the planter calibration work we do for growers on seed meters. We have again contracted with Direct Contact to do any SmartBox calibrations in the area and that training is complete. Growers and retailers are being presented with other offerings like CropView and ProfitZones. T21 had a good run on TheProfiler sales this winter and that equipment continues to be an interest to growers. There has been quite a bit of interest in CropView. Mostly it has been on a try it out basis, but that offering is getting us in contact with some new potential customers. The sales team has been
Spring 2017
instrumental in assisting staff with sales activity. Any remaining soil sample work is getting done. The crop specialists are meeting with customers to continue to develop cropping plans for the coming season. The wheat has greened up with the warmer than average weather for this time of the year. Now we are headed back to winter with low night time temperatures forecasted and very little snow cover. We don’t expect much wheat damage, but these conditions increase the chance of winterkill especially with some of the dry soils around the crown not insulating the crown of the plant that much. Field work has begun in earnest is some areas and topdressing wheat is ramping up.
central nebraska Solid interest still abounds with composite, zone, and grid sampling. Our staff continues to process soil sample work orders for our customers at an increased pace now that the frost is out. It is noteworthy to say that a good share of the grid orders coming in are on new ground or on fields that were last sampled 5+ years ago. We generally recommend grid sampling on a 4 or 5-year frequency and many fields are at or beyond that time span. It is just as important now as ever to stay current with the fertility levels and trends. As of late, we have been promoting aerial imagery and have partnered with TerrAvion who will be doing the flying. The offer consists of a 12 flight program with three different images included. Those images are native, thermal, and NDVI. Image resolution is at 7” which far exceeds satellite imagery resulting in a much
cleaner and clearer picture. Imagery turnaround time is expected to be 24-48 hours, allowing us to put boots on the ground for timely inspection of suspected trouble areas and the potential to provide timely solutions. We think this will have a great fit for those fields that we service with remote soil moisture sensing and/or provide limited service field inspections. The earlier than normal warm weather pattern has allowed winter annual weeds to break dormancy and that is a signal for us to start scouting no-till fields for weed pressure. Farther south into Kansas, herbicide applications have already began. We encourage our field staff to stop in at our local owner locations to discuss product recommendations in an effort to support our partnerships moving forward.
Eastern nebraska It’s hard to believe that in less than a month, planters will start rolling throughout much of the eastern Nebraska territory. After several days of exceptional weather throughout much of the corn belt, spring feels even closer. This time of year, training is always a top priority. In the last month, we’ve trained five of our staff members on SmartBox and mechanical planter calibrations, which will really pick up in the next month. We also completed all our mandatory workers protection standards training for our staff. Staff members have attended a number of university, industry and in house agronomic trainings, as we strive to be the best educated, best prepared consultants in the field in 2017. Business development continues to be a focus as well. We are very excited to have several new service
offerings from STEPS, including aerial imagery and ProfitZones. A reliable 12 flight aerial imagery program has tremendous potential to improve our effectiveness and efficiency as crop consultants, allowing for more data points to drive in season field decisions and more focused field checks. We are strategically using this tool with our growers and retail partners to set the foundation for better agronomic decisions and future business growth. It has also served a nice starting point to expand our footprint into areas we have not been able to reach in the past. At the halfway mark in the fiscal year, I feel refreshed by the efforts of our eastern Nebraska consultants, STEPS staff, lab staff and sales team to reach our goals for the year.
changes to our soil drying capabilities to insure a quick turn around on customer soil samples. Some new testing capabilities have also been added in Amarillo. Prussic acid testing is now being done in Amarillo and we are working toward Glycerin testing, Total Phosphorous, and BOD/COD. Each test should allow us to reduce shipping cost and provide a much-needed increase to our bottom line revenue. Dr. Curtis Bench from Panhandle State University is scheduled to bring his Agronomy class to tour the Amarillo lab and learn about our testing capabilities. We are anxious to meet each of the future agronomists and look forward to doing business with them in the future.
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Dodge City Laboratory
We are starting to grid sample once the ground dries out, lots of rain across the state lately and muddy fields. We have 6 retailers signed up for TerrAvion imagery so far with 3-4 or more potentially partnering up with us to offer imagery to our customers. Planter calibrations are starting so it’s going to be a busy season. With a couple of new hires coming on board this spring, we’re in a position to grow with our retailers and new business, and are gearing up for a great year!
For the most part, the laboratory has been busy. Recent spring-like temperatures have resulted in a steady influx of soil samples. We anticipate this trend will continue in March. As we move into April and May, sample volumes tend to drop for all sample types. We are planning some minor renovations that we hope will coincide with this lull before the summer busy season. The plan is to do some repair and replacement of fume hoods. We will also be replacing three of our oldest sinks and cabinets, circa 1977. As with any renovation project, we hope to be able minimize the disruption of our daily activities and still get results to our customers without delay.
Amarillo Laboratory Soil season is hitting late again this year and bringing a new set of challenges. With record January rain in the Panhandle, the soils are coming in very wet which has presented an opportunity for improvement at the Amarillo lab. We have made several
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The Cover Crop A Quarterly Magazine for Servi-Tech’s Owner Cooperatives
Dodge City Hastings 1816 E. Wyatt Earp Blvd. 1602 Park West Drive Dodge City, KS 67801 Hastings, NE 68902 620-227-7509 402-463-3522
Amarillo 6921 South Bell Amarillo, TX 79109 806-677-0329
All rights reserved. The information and opinions expressed herein are those of the author, and not necessarily the opinion of the board of directors, executive management team, or other staff of Servi-Tech, Inc.