is our savings account that provides the liquid assets needed to operate the business. • MaxYield increased retained savings, which now totals nearly $52 million. In 1997, retained

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DECEMBER 2018

6 Langdon: Small but Mighty

20 How the World of LP Impacts You

26 On the Job with Rick Abrahamson

PAGE 12

ALL ABOUT THE ROOTS:AVOID THE #1 MISTAKE IN SOYBEAN PRODUCTION

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MAXYIELD EDITORIAL TEAMPatti Guenther, Chad Meyer, Diane Streit

My Solutions® magazine is sent to you courtesy of MaxYield Cooperative® to offer you an exclusive look into farming and rural life in Iowa and southern Minnesota. MaxYield is a local agricultural cooperative that not only works to maximize the harvest but also never loses sight of the bigger picture of why people farm. More information about MaxYield is available at www.maxyieldcoop.com.

My Solutions is published by MaxYield Cooperative, 313 3rd Avenue NE, West Bend, IA 50597.

To subscribe or provide address changes, please send to: MaxYield Cooperative PO Box 49, West Bend, IA 50597 Call 515-200-5115 or email [email protected]. Subscription cost is $10 per year.

Photography by Greg Latza.

OFFICERS AND DIRECTORSBoard Chairman Howard Haas, Algona (central region) 515-295-7993

Vice Chairman David Garrelts, Emmetsburg (central region) 712-852-2792

Secretary/Treasurer Eric Marchand, Britt (east region) 641-843-4167

Barry Anderson, Greenville (west region) 712-262-0480

James Black, Algona (central region) 515-341-7858

Don Hejlik, Britt (east region) 641-843-3438

Todd Meyer, Everly (west region) 712-834-2153

Ron Rouse, Curlew (west region) 712-855-2434

Jim Wirtz, West Bend (central region) 515-887-6554

LEARN MORETo learn more about MaxYield Cooperative, visit us on Facebook, Twitter and YouTube. Or log on to www.maxyieldcoop.com.

A PEEK INSIDE THE DECEMBER 2018 ISSUE:

COVER STORY, Page 12:

GETTING TO THE ROOT OF THE MATTER AVOID THE #1 MISTAKE IN SOYBEAN PRODUCTION

Page 6:

LANGDON: SMALL BUT MIGHTY

Page 10:

MEET BEN BUIEMAXYIELD’S NEW GRAIN TEAM LEADER

Page 20:

GOING GLOBAL:HOW THE EVER-CHANGING WORLD OF LP IMPACTS YOU

Page 22:

THREE-PEAT: MAXYIELD RECEIVES TOPWORKPLACE HONOR AGAIN

Page 24:

FIVE THINGS YOU DIDN’T KNOW ABOUT HARRY BORMANN

Page 28:

WHAT’S HOLDING YOU BACK? TAKE ADVANTAGE OF MAXYIELD’S FIRM OFFER PROGRAM

4 / MY SOLUTIONS / DECEMBER 2018 / 5

MaxYield’s fiscal results for the year ending July 31, 2018, showed solid earnings. Local savings from operations for the 2017-2018 fiscal year totaled $1,681,812. Pre-tax total savings for the cooperative totaled over $4.8 million.

MaxYield’s current balance sheet is arguably the strongest balance sheet in our company’s history, even with a challenging farm economy the last four years.

MaxYield, by the numbers Here are some highlights that tell the story of our balance sheet and why MaxYield is positioned for success going forward:

• Term debt was reduced by $4.4 million, members’ equity increased nearly $6.0 million and we added over $3.0 million to working capital in 2018.

• In the past two fiscal years, our working capital has grown by $5.5 million and is now at a record level. Working capital is our savings account that provides the liquid assets needed to operate the business.

• MaxYield increased retained savings, which now totals nearly $52 million. In 1997, retained savings were negative $122,242. We continue to strengthen MaxYield’s financial position.

• We had a strong fall 2017 season. Even with a difficult spring, in which some crop inputs and nutrients were simply not applied, seed, crop nutrient and crop protection margins in total were higher than our previous fiscal year.

• Noteworthy accomplishments in MaxYield’s 2017-2018 fiscal year included strong grain drying revenues, increased propane gallons and solid energy margins, along with increased revenues in transportation, SciMax Solutions and feed. We like to see this balance across the cooperative.

• Our emphasis on controlling expenses, combined with

improved grain margins in 2018, helped us achieve strong fiscal results.

• MaxYield’s 2016 purchase of seven locations from The Andersons, Inc. was a cash transaction. We committed to reducing this debt and local leverage by 15 points a year, and we’re ahead of this pace at the close of fiscal year 2018. It’s possible we could have leverage back down to pre-Anderson purchase levels in four fiscal years.

• MaxYield’s board will be using the Section 199A tax provision to offset 2018 income, as we did a year ago. MaxYield is also passing along more than $3.2 million of this Section 199A tax deduction our members can use on their own tax returns.

• In fiscal year 2018, the MaxYield board paid $730,000 for the retirement of preferred stock and preferred stock dividends.

• At their September 2018 board meeting, the MaxYield board approved the retirement of some preferred stock for the current fiscal year 2018-2019. They also approved another discounted equity offering. This is the fifth discounted equity offering MaxYield has offered.

Looking ahead Your cooperative had a good fiscal year, thanks to the support of our clients, great teamwork and a focus on continued improvement.

It appears that 2019 will be every bit as challenging as recent years. The board will continue to place strong emphasis on upgrading MaxYield’s property, plant and equipment, debt reduction and retirement of some MaxYield deferred equity. We’ll also continue to invest in team member education.

Enhancing revenue and decreasing expenses in this tight economic environment aren’t easy, but we’re up to the task. Thanks for your continued support of MaxYield. ■

By Keith Heim, chief executive officer

MAXYIELD STRONG:Balance Sheet Tells a Success Story

It’s an understatement to say 2018 brought some of the most challenging spring, summer and fall weather many of our farmers have experienced in quite some time. As we all try to operate in this difficult ag economy, I have good news.


There are a lot of “used to be” descriptions of Langdon. There used to be a bank, grocery store, creamery, railroad depot and pool hall in this Clay County town.

There used to be Charlie’s Super Service and Pinochle Palace just down the way from the grain elevator.

There even used to be a baseball diamond where the local semi-pro softball team played, with the pitcher’s mound near the site of the current MaxYield Cooperative’s propane bulk tanks.

But if you think this place is just a has-been, don’t underestimate the importance of MaxYield’s location in this unincorporated community of 53 residents.

“This is one of MaxYield’s smaller locations, but we’re efficient,” said Lyn Cox, grain superintendent at Langdon. “A lot of the clients we serve have been coming here for years.”

Langdon is a seasonal location that includes 1.4 million bushels of grain storage, a cardtrol fuel station and other energy products. While it’s a one-person

team most of the time when Langdon is open, Karen Jathro, an accounting assistant from MaxYield’s Everly location, helps Cox in the fall by running the scale.

When Langdon is closed, Cox works at MaxYield’s Dickens and Fostoria locations. “It’s interesting working at other locations, because you learn a lot,” said Cox, who handled his eighth harvest at Langdon this fall.

From co-op to private company to co-op Langdon was founded in 1899 and used to have two grain elevators, although only one survived, according to the 1999 book “The Langdon Legacy: Celebrating 100 Years.” On December 8, 1913, Farmers Elevator and Supply was incorporated. Farmers Co-op Elevator of Spencer bought the Langdon elevator in 1978. Then Farmers Co-op Elevator of Everly bought the Langdon and Spencer locations in 1984.

In later years, the Langdon location became part of Green Plains Grain LLC, the private company where Cox began his ag career.

“In 2009, Green Plains Grain was looking for temporary help, so I started at Greenville,” said Cox, a rural Nebraska native who came to northwest Iowa in 1985 to work in management with the Kmart discount chain. “They never told me to go home, so I stayed.”

There was a big corn pile at Langdon that fall, so Green Plains transferred him there to help out. Cox joined the team full-time in April 2010. He later became an employee of The Andersons, Inc., after the Ohio-based company bought the Green Plains locations.

“When we were The Andersons, our schedule in the off season was two weeks open, two weeks closed, so we could cover the labor needs at various Andersons locations in the area,” Cox said.

On May 1, 2016, the Langdon location became part of MaxYield and returned to the cooperative system. “It’s a different culture coming from a private company to a co-op,” Cox said. “The co-op philosophy is more client friendly. We’re gaining back clients that Langdon lost when it was part of The Andersons.”

LOCATION PROFILE

8 / MY SOLUTIONS / DECEMBER 2018

Longevity reflects strong community support Langdon is almost like an island between Dickens and Fostoria, Cox noted. When MaxYield purchased Langdon, Ron Sikora, MaxYield’s location leader for Fostoria and Dickens, didn’t mince words.

“He told me, ‘I know nothing about this place, so just take care of things, and call me if you need anything,’” said Cox, who has become a trusted resource for Langdon’s clients.

While the Langdon location has evolved through the years, traces of the past still endure. “Even though the rail lines were gone long before I came here, I still find rail spikes from time to time,” said Cox, who calls himself a Nebraska Cornhuskers fan surrounded by Iowa Hawkeyes fans. “Working in agriculture is never dull.”

The co-op is the only commercial business still operating in Langdon, said Cox, who credits this longevity to strong community support. “Langdon is a neat little place, and it’s a good group of people around here.” ■

Langdon Native Shares Co-op Memories Perhaps no one knows more about Langdon and its co-op location than Jeannie Lawrence, MaxYield’s client care leader at Milford. “While I’m not the oldest resident of Langdon in terms of age, I hold the title of the person who has lived in Langdon the longest,” said Lawrence, who has lived there 63 years.

Lawrence worked at the Langdon location for more than 15 years before moving to MaxYield’s Milford location. “I worked in Langdon through all the remodeling and construction of the new bins and office, so I appreciate all the improvements to the site. Going from the old woodhouse elevator to the new office and bins has been quite a transformation.”

MaxYield’s Langdon complex is located in the area where some of Lawrence’s favorite childhood memories were made. “I can remember when the train used to come through town by the elevator,” said Lawrence, who helped compile the town’s 100th anniversary book in 1999. “We would run to the ball diamond, where MaxYield’s liquid propane tanks now sit, and the train conductor would throw us candy.”

Lawrence also loved going to ball games in Langdon and celebrating the 4th of July at the town picnic. “Those were good times.”

For Lawrence, farmers in the Langdon area are more than MaxYield clients. “They are truly lifelong friends. When you work at a smaller facility like Langdon, the team members become more like family—people you can count on in good times and the not-so-good times. The Langdon location will always be special to me. After all, it’s home.” ■

“Working in agriculture is never dull.”

Lyn Cox, Langdon Grain Superintendent

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Lyn Cox

Ron Sikora (left) and Lyn Cox


What does a field of milo have to do with grain marketing at MaxYield Cooperative? A lot, now that Ben Buie has joined the company as the new grain team leader.

“I used to work for a feed processor in New Mexico, and the second year I was there, farmers had grown a beautiful crop of milo that was four feet tall, green and lush,” said Buie, who joined MaxYield in early September. “I started selling that crop, but then the weather turned hot and dry. When temperatures shot up to 110 degrees, farmers started cutting the milo for silage.”

The experience left a lasting impression on Buie, who has been working with Harry Bormann, MaxYield’s

current grain team leader, to ensure a smooth transition of responsibilities.

“I learned you can’t always count on a crop in that part of the world, so you have to be lean and efficient to sustain your business. That really got drilled into me, along with the importance of not counting your crop before it’s in the bin.”

Buie brings a wealth of practical experience like this to MaxYield, thanks to his 22-year career in the grain industry. “I’ve worked from the Upper Midwest to the Southwest and have seen a lot of different ways of going about the grain business,” he said. “This has given me some unique perspectives into solutions for grain industry challenges.”

Q: What’s your ag background?

A: Both of my parents grew up on farms, and I’ve been around agriculture my whole life. I grew up in Missouri and Illinois. My dad was a controller for a river terminal. I lived in bigger cities like Kansas City and small towns like Beardstown, Illinois.

Q: What do you enjoy about agriculture?

A: I love seeing the fertile ground and watching seeds transform into green crops that turn into the food we eat, the fuel we use in our vehicles and a thousand other products we all use every day. I love being a little part in a big system that creates things we need to survive and thrive.

Q: What’s your educational background?

A: I studied civil engineering early in my college career, since I like math and problem solving. I also like working with people, so I switched my major to economics. I earned my Bachelor of Science degree in economics from the University of Illinois in 1996. I later went back to school and earned my Master of Business Administration degree from Eastern New Mexico University in 2001.

Q: Where has your career taken you?

A: After earning my economics degree, I took a job as a feed ingredient merchandiser for Garvey Processing, Inc. in St. Charles, Illinois. I also sold feed to customers in Kansas, Missouri, Oklahoma and Arkansas. Then the company transferred me to its New Mexico location, where I was a feed sales manager and grain originator. I moved to New Mexico in 1997 and lived in the Southwest for 13 years. Through 2006 I continued working for Garvey Processing in Portales, New Mexico, as a sales manager. That’s a big region for dairy production, and I enjoyed interacting with the dairy farmers, who are hard-working and family-oriented. After J. D. Heiskell & Co. (the fourth largest feed manufacturer in the United States) bought the feed facility in Portales, they moved the headquarters to Amarillo, Texas. I became J. D. Heiskell’s grain merchandising manager from 2006 to 2011.

Q: What brought you back to Iowa?

A: We wanted to be closer to our family in the Midwest. In 2012, I began a new role as grain division manager for ECI Cooperative based in Cedar Falls, Iowa. I worked there six and a half years before coming to MaxYield.

Q: What attracted you to MaxYield?

A: MaxYield has a great reputation in the ag industry. I knew some of the team members, since I had bought some Enogen® corn to go into our feed mill when I was at ECI Cooperative.

MaxYield has great team members, financial strength to run the business the right way and the resources to grow.

Q: What do you value about the cooperative system?

A: I appreciate the co-op’s focus on its clients and the commitment to serve them. This includes sharing the financials. After working in private industry, it was a pretty big shock for me to walk into a co-op and see the financials sitting on the front counter. Private companies tend to be tight-lipped about how the business is doing financially.

Q: What keeps you motivated?

A: Iowa farmers have integrity and take a lot

of pride in how they do business. I look forward to serving our clients and building on the strong foundation that Harry Bormann maintained for years at MaxYield. ■

“Ben grew up around this business, has grain trading experience, country grain elevator experience and has led some elevator expansion projects. The geographic diversity of his professional background is also good for MaxYield. There’s no doubt Ben will do an excellent job.”

Keith Heim, MaxYield CEO

Meet Ben Buie MaxYield’s New Grain Team Leader

Editor’s Note:

Ben Buie and his wife, Stella, have two children, including Lucas, 17, and Moira, 15. Ben has coached many of his son’s youth sports teams, including soccer, basketball, flag football and baseball. Buie’s wife was a theater professor with a specialty in costume design, and daughter Moira is also interested in this area. In his free time, Buie enjoys reading, walking the family’s three dogs and cheering for the Fighting Illini.


Were your soybean yields better in 2018 than 2017? If you weren’t pleased with this year’s results, it’s time to get to the root of the matter.

“This year was all about the roots,” said Dan Bjorklund, seed team leader for MaxYield Cooperative.

Maybe it seemed like a good idea last spring to skip seed treatments on soybean seed or just use the bare minimum. But then the rain came—lots of it—in many parts of Iowa, especially regions of northern Iowa.

There was so much rain (and snow) across MaxYield’s trade territory this spring that a lot of soybeans didn’t get planted until late May, early June or later. As soon as the seeds started to germinate, the roots were under attack from diseases, including rhizoctonia root rot.

“Our area had nearly perfect conditions for rhizoctonia root rot this spring,” Bjorklund said. “It was driven by the extraordinarily warm May, as well as the wet conditions.”

When diseases like this take hold, the consequences can be severe. As the infection strips lateral roots from the plant, this slashes the soybeans’ ability to absorb vital nutrients and water.

Conditions never got easier for beans in MaxYield’s territory in 2018. The assault on the young roots continued into summer, since the crop spent most of June with wet feet. Some parts of MaxYield’s trade territory received 12 inches of rain in June alone, Bjorklund noted.

Saturated soils led to season-long challenges for the crop, especially if soybeans were planted with no seed treatment or had inadequate protection during the growing season.

“Think of the soybean plant as a factory,” Bjorklund said. “Roots are the underground ‘assembly line’ for the factory. If the roots shut down for any reason, this slows down the assembly line, which hurts the crop’s yield potential.”

Keep that factory running with seed treatmentsFailing to protect those all-important roots is the No. 1 mistake a grower can make, Bjorklund added. In fact, more research is pointing to root health as the key to increasing crop productivity in the future.

Healthy roots lead to:

• Protection against yield-robbing insects and diseases below the soil surface

• More efficient water and nutrient uptake

• The development of stronger stems and foliage that better withstand field stress loads generated by fungal diseases, nematodes, insects and adverse weather conditions

• Protection of the crop’s genetic potential

Seed treatments offer a key resource to help keep the factory operating efficiently, Bjorklund noted. “Farmers who didn’t use seed treatment this year witnessed decreased yields. Those who only used a basic seed treatment found out that often wasn’t enough in the conditions growers faced in our area.”

There are a variety of seed treatments available to protect the crop and help it get off to a good start. Options can range from fungicide only to fungicide plus insecticide to fungicide plus insecticide and specialized treatments.

“This turned out to be the year that an inoculant would also have been good to add,” Bjorklund said. “Soybean inoculant will also be essential for good nodulation in 2019.”

The payback from the right seed treatment program can be significant, depending on soil conditions and

disease levels. “If you’ve had sudden death syndrome (SDS) take out 10, 15 or 20 bushels per acre, it doesn’t take long to get a return on investment (ROI), as high as 5 to 1 with a seed treatment investment, depending on the severity of the disease conditions,” Bjorklund said.

Not all seed treatments are created equal Thanks to advances in technology, seed treatments are no longer a commodity. Not all seed treatments are created equal.

“Seed treatments are like cars,” Bjorklund said. “While a race car and an entry-level car might be painted alike, the differences become clear when you put them to the test on the race track.”

That’s why MaxYield is looking at new seed treatments with the active ingredient sedaxane, which was developed to control fungal diseases like rhizoctonia root rot. Protecting the roots with sedaxane helps combat yield-robbing rhizoctonia and optimize crop performance.

MaxYield is also assessing Tripidity, a seed treatment that first became available in 2017. The product contains a specific ratio of key ingredients, including auxins that promote root growth. “MaxYield has Tripidity trials on both corn and soybeans. With soybeans, Tripidity can be paired with Heads Up®.”

Giving plants a helping hand when they’re building their root systems is also the goal of Heads Up®, which helps germinating soybean seeds inhibit diseases like white mold by stimulating the plants’ own defense mechanisms.

Bjorklund recommends layering seed treatments, as needed, to manage field stress loads. “You can select seed treatments a la carte. Maybe you just want an inoculant and fungicide. Maybe you need to add ILeVO®, a seed treatment that offers effective protection against sudden death syndrome (SDS), or options to protect against nematodes in the seed zone.”

MaxYield’s team members are ready to help you select the right combination of seed treatments for 2019. Building a better root system when the young soybean plants are most susceptible to diseases and other yield robbers pays off throughout the growing season, Bjorklund said.

“Pythium, phytophthora rhizoctonia, fusarium and other organisms have built up in the soil this year and are just waiting for the right environmental conditions to explode. Seed treatments will be essential in 2019 to help promote healthy roots and maximize yield potential.” ■

Avoid the #1 Mistake in Soybean Production


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Struggling to make ends meet? Worried that next year may bring another year of limited profitability, or even losses? When the farm economy takes a downturn, it’s easy to lose perspective, have difficulty making decisions and get discouraged.

“These are tough times for some farm families,” said Kelvin Leibold, an Iowa Falls-based farm and ag business management specialist with Iowa State University (ISU) Extension and Outreach. “There are some that may be saying, ‘I’m not sure if I get to stay in the game after we get done with all of this. I need higher prices to make my cash flow work.’”

What can you do when you, or farmers you know, say they’re having a tough time? ISU Extension and Outreach can help.

“We offer a wide range of resources that can be especially useful now,” said Meredith Nelson, program coordinator and office administrator for ISU Extension and Outreach’s Kossuth County office in Algona. “You name it, we can probably find the answer.”

These resources take on a new importance when farmers need someone to talk to other than their lender or family members about breakevens, stress and more. While there are plenty of resources online, don’t overlook Extension, Nelson said.

“Yes, you can find plenty of stuff online, but can you trust it? Extension was Google before there was Google. We’re also research based, so all of our information is proven and reliable.”

12 How-to-Help TipsOne Extension resource that’s easy to access online is the one-page PDF called “How to Help When You Don’t Know What to Say.”

“When a friend or relative experiences trouble, such as a death in the family, financial losses, divorce or serious illness, it’s easier to stay away or remain silent than it is to help, because you don’t know the right words,” says the PDF. “But, think of it from your friend’s or relative’s point of view. Troubles seem even worse when friends and family stay away during hard times.”

The information sheet contains 12 practical tips to help start the conversation.

“Instead of asking, ‘How are you doing?’ right away, greet the person with, ‘It’s good to see you,’” Nelson said. “After you’ve chatted for a few minutes, pause and say, ‘How are you doing?’ or, ‘How are things going?’ If you ask these questions right away, the person may not know whether you really want the real answer. Be sure you have time to listen before you ask the question.”

This PDF, along with a variety of other stress-management resources and more, can be found online at www.extension.iastate.edu/humansciences/content/finding-answers-now.

Farm Financial Planning ProgramISU Extension also offers Farm Financial Planning. This farm financial analysis program is free and confidential. It consists of one-on-one financial counseling, a computerized analysis of the farm business and referral to other Extension programs or outside services that may be useful.

Who is it for?Farm Financial Planning is for anyone who wants to understand a complete picture of their farm’s financial situation. It helps take the guesswork out of whether or not a change would increase profitability and improve cash flow.

ISU EXTENSION OFFERS RESOURCES FOR TOUGH TIMES

LEAN ON ME:



What does it do?Farm Financial Planning helps you evaluate your farm business and determine whether or not a change is desirable. It provides an in-depth plan for the farm business so you and your lender can make decisions for the future. Farm Financial Planning helps answer three basic questions of sound business management:

1. Where am I today?

2. Where do I want to be in the future?

3. How do I get there?

The computer analysis looks at profitability, liquidity, solvency and risk-bearing ability. This information is provided for three or more alternative plans at a time. Alternative plans could include the addition, expansion or phasing out of a livestock operation, or buying, selling or renting land. Farm Financial Planning can help evaluate ways to correct negative cash flow and profitability problems, Leibold said.

A trained Extension associate will meet with you to discuss the results of the analysis and the possible effects if changes are made. The Extension specialist may introduce other farm and family financial materials or information about outside sources of help.

Iowa Concern HotlineISU Extension also provides Iowa Concern. This program began in 1985 as a toll-free number serving the agricultural community during the Farm Crisis. Today, Iowa Concern serves both urban and rural Iowans. Iowa Concern services are available 24 hours a day, 7 days per week at no charge.

Call toll-free at 1-800-447-1985. You can also log on to www.extension.iastate.edu/iowaconcern and access a live chat service that immediately connects you with a stress counselor who will communicate one-on-one with you in a secure environment.

Be prepared Even if you or someone you know doesn’t need these resources now, it’s better to be prepared. “You never know when a friend, a family member or even you might need these resources,” Nelson said.

Don’t hesitate to contact your local Extension office if you can’t find the information you need. “We don’t always have all the answers in our local office, but we can get you additional resources in the region or from specialists on campus at ISU,” Nelson said. “We want to help in any way we can.” ■

ANSWERS AT YOUR FINGERTIPS Iowa State University Extension and Outreach offers a wide variety of online resources to help farmers during stressful financial times, including:

• Financial Troubleshooting

• Overcoming the Cash Flow Crunch

• Managing Farm Business and Family Stress

• One-on-One Farm Financial Planning Support

• Ag Decision Maker Financial Resources

https://www.extension.iastate.edu/agdm/wholefarm/pdf/c3-53.pdf

https://www.extension.iastate.edu/agdm/articles/johnson/JohSep18.html

https://www.extension.iastate.edu/agdm/articles/hart/HartNov16.html

https://www.extension.iastate.edu/agdm/wholefarm/html/c6-51.html

https://www.extension.iastate.edu/agdm/wdfinancial.html

Scan the QR Code with a reader app on your smart device to go directly to the resource!


Pop quiz—liquid propane (LP) is produced as a byproduct of what two other processes?

Answer: natural gas processing and petroleum refining.

Production of LP has soared in recent years, since America has been producing more oil domestically. So if LP is just a byproduct, and there’s plenty available, why is LP pricing where it is?

“You have to take a global perspective to understand the factors that drive the price you pay for LP,” said Chad Besch, energy team leader for MaxYield Cooperative.

While America’s domestic production of LP has almost doubled since June 2010, exports have skyrocketed by 900 percent during this time. “Global demand for LP really started to take off in 2013,” added Besch, who noted that demand has been especially strong in Asia.

Export capabilities at U.S. ports where LP is shipped—mainly in the Gulf of Mexico and the East Coast—have been expanding in response to robust overseas demand for LP. The modernization and expansion of the Panama Canal also allows passage of supertankers, which means more LP can be shipped worldwide.

“In the spring of 2018, there were cases where LP from America could be shipped to China cheaper than the Chinese can produce it themselves,” Besch said.

The world is willing to payBut why not keep America’s LP at home, since Americans also need it to heat their homes, run appliances and more?

“It only makes sense to export the product, since the rest of the world is willing to pay for it,” said Besch, who noted that growth in U.S. LP exports is expected to continue. “We’ll soon be able to export 80 percent of U.S. production. That means it really doesn’t matter if we have a cold winter here in Iowa, in terms of LP pricing.”

It does mean, however, that the potential for greater LP price volatility here at home is real. “That’s the biggest thing you need to be aware of,” Besch said.

How America’s two LP markets work The price you pay for LP is also influenced by the two LP markets in the United States. One is the Mont Belvieu, Texas, market, and the other is the Conway, Kansas, market.

“We’re in the Conway market,” said Besch, who noted that this part of Kansas has big caverns where natural gas is stored. “LP producers can ship into Conway or Mont Belvieu, but more gallons are going to Mont Belvieu lately.”

Why? While prices used to be fairly comparable between the two markets, the price spread shifted to well over 20 cents per gallon, favoring Mont Belvieu. “They can almost guarantee they can export the LP somewhere,” Besch said. “The people selling LP don’t care where it goes. They want the highest price. At some point, prices in the Midwest for LP may be higher, due to factors like this.”

Taking care of youLP prices here at home have had a 1 in front of them for quite some time, Besch noted. While big price spikes haven’t occurred, that doesn’t mean it’s not possible. But the odds of a big price decline aren’t great, either. “Even if prices did drop, that probably wouldn’t happen until late spring,” Besch said.

Why not remove some uncertainty by taking advantage of LP contracting from MaxYield? Contracts are available to help you lock in at a specific price for a specified time.

“You tell us how many gallons you want to contract,” said Besch, who noted that the contract period runs from September 1 through March 31. “Then you pay a set price for those gallons.”

What if you use more gallons of LP than your contract specifies? If you contract 1,000 gallons and use 1,200, for example, you pay the market price for those last 200 gallons, Besch said.

MaxYield is also available to help you

customize energy solutions to your specific needs. “One of the biggest advantages we can offer with LP is personalized service,” Besch said. “We want to build the relationship with you.”

Contact Energy Central today at 866-711-7282 to learn more about how MaxYield’s energy programs can work for you. ■


Every organization, from a family farm to MaxYield Cooperative, has a culture. Some cultures are intentional, while some are accidental.

MaxYield’s culture is no accident. It’s also a key reason why the cooperative was awarded a 2018 Top Workplace honor by The Des Moines Register. This is the third consecutive year MaxYield has won this prestigious honor and the fourth overall.

“Our culture is based on non-negotiables of integrity, client focus, safety, professionalism, empowerment, accountability and teamwork,” said Keith Heim, MaxYield’s CEO. “The only way we perpetuate this culture is by living it every day.”

Becoming a Top Workplace is a distinction that’s never given. It’s earned—always. It starts with a third-party, anonymous survey in the spring administered by research partner Energage, LLC. The survey is emailed to all MaxYield team members.

The award is based solely on feedback gathered through this survey, which measures various aspects

of workplace culture, including alignment, execution, connection and more. No other ag companies in the mid-sized employer category won this award.

“Becoming a Top Workplace isn’t something organizations can buy,” said Doug Claffey, CEO of Energage. “It’s an achievement that organizations have worked for and a distinction that gives them a competitive advantage.”

Award helps attract top talent The Top Workplace award is much more than a plaque. It’s a competitive advantage.

“Our research shows organizations that earn the award attract better talent, experience lower turnover and are better equipped to deliver bottom-line results,” Claffey said.

MaxYield sees this when it recruits new talent. “During job interviews, multiple candidates have said, ‘I saw MaxYield is a Top Workplace winner, so I wanted to explore opportunities here,’” said

THREE-PEAT:MAXYIELD RECEIVES TOP WORKPLACE HONOR AGAIN

Diane Streit, human resource director at MaxYield Cooperative. “This is true for management positions to interns.”

Two of the candidates for MaxYield’s grain team leader position commented on the cooperative’s Top Workplace award, Heim added. “Culture has been described as the only remaining sustainable competitive advantage in business. Great business strategies can be copied, but culture cannot.”

Keeping the momentum going To keep MaxYield’s culture strong, senior team leaders place a high priority on analyzing the results of the Top Workplace surveys.

“We carefully go through all the information, from the aggregated data to the comments from different departments, to find out what ways we can improve,” said Streit, who attended the Top Workplace award ceremony in Des Moines on September 13. “The survey results also provide validation about the things we’re striving to achieve in MaxYield’s culture.”

The survey results reinforce the importance of team members who are on the front lines of serving clients, from outside operations team members who dump grain to client care leaders.

In addition, the survey offers insights into creating a culture that welcomes newcomers to MaxYield. “Part of culture is defining expectations,” Heim said. “If team members don’t know what’s expected of them, it’s like trying to move around in a dark room and find your way when you can’t see where to go.”

MaxYield’s culture is conveyed in onboarding training for new team members, but it doesn’t stop there. It’s also reflected in how team members lead by example and help each other daily. “There’s no sink-or-swim mentality here,” Heim said. “We want all our team members to feel comfortable with their role and be good at what they do.”

This includes interns. During their presentation to MaxYield senior team leaders at the end of their internship, countless students comment on the kindness and helpfulness of MaxYield’s team members, Heim noted.

MaxYield is building on this solid foundation as the team makes continuous improvement a top priority. “Culture isn’t a destination, it’s a journey,” Streit said. “The feedback we receive through the Top Workplace award helps us make changes to get better.” ■


Remember the days when most farmers in the local area raised crops and livestock, needed the same general supplies from the co-op and managed farming operations that were quite similar to one another? Harry Bormann can. That’s the world he grew up in, and it’s the world that shaped his career path in the cooperative world.

That path has taken many twists and turns, however, even though Bormann has always worked close to home. Perhaps the biggest twist of all came in the spring of 1996, when Bormann accepted a job in the grain department at West Bend Elevator Company (WBEC), which later became MaxYield Cooperative.

“A friend just reminded me the other day that I said I’d never work here,” said Bormann, who will retire at the end of 2018 from MaxYield, where he has served as the grain team leader.

So what prompted Bormann’s decision? Here are five things that reflect Bormann’s journey:

He’s a farm boy at heart. Bormann grew up on a farm between West Bend and Whittemore. “This area is blessed with good people, good land and good production,” said Bormann, who didn’t

have the opportunity to farm. “For me, working in ag was the next best thing to farming.”

He became a manager by age 28. Bormann landed a job at the Cylinder Co-op after completing the feed and fertilizer program at Iowa Lakes Community College in 1974. He was

promoted to general manager by age 28 in 1982. He spent more than half (12 years) of his 22-year-career at Cylinder as the general manager. “The 1980s were tough,” Bormann said. “The co-op had a lot of debt, and Iowa lost a generation of farmers.” By the 1990s, co-ops and agribusinesses in the area assessed new options to remain viable. In the fall of 1995, seven local co-ops worked together to see if they could build a soybean processing plant. “We were looking at buying the Whittemore location from WBEC, since that was where our soybean processing plant was going to be,” Bormann said. “We kept our group together until AGP broke ground on its soybean processing plant in Emmetsburg.”

He’s not afraid of a challenge. One of the opportunities that came out of that experience was Bormann’s new connection to Dave Schneider, who became WBEC’s

general manager in 1996. Schneider was impressed with Bormann’s skills and offered him a job at WBEC. “Grain has always been the thing I like the most in the cooperative business,” Bormann said. “Coming to a place where I only had to be responsible for grain instead of everything else appealed to me.” After joining WBEC in the spring of 1996, one of Bormann’s first jobs included settling hedge-to-arrive (HTA) grain contracts for the co-op. Bormann credited Schneider with managing through the HTA and fiscal challenges. “Dave was challenged to make the tough decisions following the HTA situation,” Bormann said. “The co-op had to make a net savings, and we did that year. Dave helped save the company.”

He has helped MaxYield grow. Having the right general manager or CEO at the right time has been essential to the co-op’s success, Bormann said. “Dave’s successor,

Joe Anniss, was a great communicator and team builder,” Bormann said. “He started new partnerships with the ethanol plant in Lakota, the co-op in Britt and a joint venture with Agri-Industries that led to the expansion of MaxYield’s east region.” Bormann is grateful he had the chance to work with Anniss, as well as Bob Burkhardt, MaxYield’s previous chief financial officer, and Keith Heim, the current CEO. “These professionals brought years of cooperative experience to MaxYield that helped us grow,” said Bormann, citing the 2016 purchase of seven locations from The Andersons, Inc. Bormann also appreciates the way Heim is leading the MaxYield team to make the company more efficient. As the team welcomes Ben Buie as MaxYield’s new grain team leader, Bormann is quick to highlight his successor’s extensive grain industry experience. “MaxYield is a great place to work with great people, including Ben. The grain business is especially interesting, because there’s always something happening in the market.”

He’s ready to enjoy more family time. After he retires, Bormann plans to spend more time with his family, including his wife, Deb, their three grown children and their families.

“Our grandkids range in age from 1.5 years to 25, and 10 live in the area,” said Bormann who also looks forward to hunting, fishing, golfing and staying in the area. “I’ve been blessed to be part of MaxYield and look forward to MaxYield’s continued success.” ■

“I’ve known Harry since the 1980s and value the tremendous leadership he has provided at MaxYield for 22 years. He knows our clients, our logistics and our facilities, plus he’s always prepared and thinks through possible solutions for any pressure points that arise.

Above all, he’s a great person. If Harry’s having a bad day, you’d never know it. The MaxYield team and I will miss him. We wish Harry and his family all the best.”

Keith Heim, MaxYield CEOSO VERY HARRY:

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THINGS YOU DIDN’T KNOW ABOUT HARRY BORMANN


Ask kids what they want to be when they grow up, and you probably won’t hear anyone say compliance specialist on the grain team at a cooperative. Rick Abrahamson felt the same way, yet he’s thrived in this unique niche at MaxYield Cooperative.

“I always wanted to be a farmer, but then came the 1980s Farm Crisis,” said Abrahamson, who grew up on a farm near Sutherland and has worked for ag cooperatives in northwest Iowa for more than 38 years.

Abrahamson, a valued member of the grain team at MaxYield’s corporate office in West Bend, learned the cooperative business from the ground up. When he started working at Farmers Co-op Elevator in Larrabee in January 1980, he handled everything except the bookkeeping. “I helped grind feed, load feed, worked in agronomy and grain, plus unloaded rail cars full of fertilizer. Back then, we didn’t have

GPS or auto steer. We custom applied fertilizer with a 4WD pickup and a 7-ton pull cart,” said Abrahamson, who grew up milking cows and raising hogs on his family’s farm before graduating from Sutherland Community High School in 1975. “Times got so tough in the 1980s that some farmers couldn’t cover their accounts, but we worked with them.”

This spirit of service reflects one of the things that sets a farmer-owned cooperative apart from other agribusinesses, Abrahamson noted. “At the co-op we tend to be closer to our clients. We don’t just sell stuff. We help them all the way through.”

By 1990, Abrahamson sought new opportunities at West Bend Elevator Company, the forerunner of MaxYield, back when the cooperative had four locations (West Bend, Mallard, Ayrshire and Rodman). He ran the elevator but knew within a year that something needed to change.

Meet the Grain Sheriff:On the Job with Rick Abrahamson

“I was having trouble with my feet from standing on the cement all the time,” Abrahamson said. “I asked if there would be any chances for advancements, since West Bend was bringing Whittemore into the cooperative around this time.”

Abrahamson wasn’t confident that there would be many options for him. He hadn’t gone to college and didn’t know how to turn on a computer, much less run one. He had taken accounting and typing classes in high school, though, and this helped him get an accounting job at the co-op.

“To this day I’m still surprised something like this worked out,” said Abrahamson, who handles grain compliance responsibilities.

This role is all about accountability and making sure things are done correctly. “Becoming MaxYield created a strong culture of accountability,” Abrahamson said. “I joke that I’m the Grain Sheriff.”

Compliance equals trust

One of the key roles of the Grain Sheriff involves reviewing MaxYield’s hedge runs and balancing the co-op’s grain positions every day.

“As we buy grain throughout the day from farmers, we’re turning around and hedging that grain on the Chicago Board of Trade,” Abrahamson said. “FCStone sends us a hedge run, and I’m balancing our hedges to their hedges. Everything has to balance, just like your checkbook at home.”

Abrahamson also tracks all outbound loads of grain daily and updates grain settlements daily. “Everything we do is to stay in compliance with state regulations,” Abrahamson said. “When we’re in compliance, it means you can trust that we’re serving you effectively.”

Abrahamson is the first to admit he’s pretty particular about keeping accurate records, but it pays off, especially when the examiners from the Iowa Department of Agriculture and Land Stewardship’s Grain Warehouse Bureau complete their yearly review of MaxYield’s grain accounting.

It usually takes a team of up to 10 examiners about a week to review the inventory, measure the grain bins, check the quality of the stored grain, review grain contracts and warehouse receipts and ensure the signature of authorization paperwork is accurate. The examiners also randomly select scale tickets and follow them through the system to ensure MaxYield’s records are accurate.

“I have a great team at MaxYield,” Abrahamson said. “They are organized and understand compliance requirements throughout the grain settlement process, but most of all, they want to serve our clients.”

This is important to Abrahamson, since he’s still a farmer at heart. He raises 360 acres of corn and soybeans near Sutherland.

“I enjoy farming and am glad my job at MaxYield keeps me involved in the day-to-day activities of agriculture.” ■

Editor’s note:

Abrahamson and his wife, Julie, have two grown daughters, Melissa and Jessica. Melissa is a client care leader at MaxYield’s Algona location, while Jessica works at a fitness center in Clear Lake. Both daughters got married in the past year. When he’s not spending time with his family, Abrahamson enjoys riding his Honda CX500 motorcycle, which he bought new in 1982, and attending tractor pulls.

Abrahamson also enjoys driving the red 1974 Chevrolet Nova his father purchased for $2,250 in the summer of 1974 at Brookfield Chevrolet in Sutherland. You might spot Abrahamson in his Nova in the annual Labor Day car cruise in Sutherland.

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MaxYield Helps Pay 4-H Membership Dues

4-H has long been a key resource for youth development in our local communities, and clubs continue to offer high-quality educational programs. Making 4-H membership accessible to more families is important to MaxYield Cooperative.

That’s why we contribute more than $13,000 to 4-H in seven northern Iowa counties annually. Recent donations have included contributions to Iowa State University Extension and Outreach offices in Palo Alto and Dickinson Counties to help decrease the cost of enrollment in 4-H youth programs.

“We’re continuing our support of local 4-H and commitment to our youth,” said Chad Meyer, MaxYield client relations/communications leader. “Recently, we presented a contribution for $10 per 4-H member in Palo Alto County and Dickinson County to decrease the cost of 4-H membership.”

MaxYield has two goals as it helps support 4-H. “First, we want to make 4-H an affordable youth program for local families, especially families that have multiple children enrolled,” Meyer said. “Second, by paying a portion of each 4-H member’s enrollment

fee, we are able to continue our mission in supporting 4-H so that each member benefits.”

Investing in local 4-H programs can pay dividends for years to come.

“4-H is one of the cornerstones for youth development and provides an excellent foundation to build strong families,” Meyer said. “4-H also offers a great way for young people to learn more about agriculture and its exciting future.”

Nancy Beck Retires from Fostoria Cenex StoreIn today’s fast-paced world, long-time team members are a rarity at many companies—but not at MaxYield Cooperative. If you stopped by our Fostoria Cenex store in the last 23 years, there’s a good chance you interacted with Nancy Beck.

Nancy began working at the store in 1995 and retired August 17. MaxYield Cooperative Energy Team Leader Chad Besch (left), presented her with a gift of appreciation for her many years of dedicated service to MaxYield. We wish Nancy all the best in her retirement!

Merlyn Brown Retires from MaxYield CooperativeWhat’s the median number of years that American employees have worked for their current employer? Less than five years

(or 4.6 years, to be exact, according to the U.S. Bureau of Labor Statistics). That’s not the case with Merlyn Brown.

Merlyn retired this summer after 46 years of service in the cooperative system. He began his ag co-op career in 1972 when he joined the co-op in Crystal Lake, Iowa. He has worked in the Garner-Klemme area since February 1990, starting with Farmers’ Co-op Society in Garner. Since 2005, he has worked for MaxYield Cooperative in the same area, driving a truck for our transportation team. We wish Merlyn the best in his next season of life.

Iowa State University Leaders Visit MaxYield CooperativeMaxYield Cooperative welcomed two distinguished guests on July 18, including Dr. Wendy Wintersteen, president of Iowa State University (ISU), and Dr. John Lawrence, vice president for Extension and Outreach at ISU.

Chad Meyer, client relations/communications leader at MaxYield, shared the cooperative’s mission of recruiting ISU students for internships and trainee positions. Harry Bormann, grain team leader, discussed crop conditions in MaxYield’s territory and detailed the impact of the farm economy on local communities. We appreciate these ISU leaders’ visit to MaxYield. ■

In the quest for higher profit potential, sometimes it’s not so much what you do, as what you don’t do.

You don’t have to constantly monitor the market and worry when you sell ahead by using MaxYield’s firm offer program. “If you know your breakeven and know what you need to sell at, just do it,” said Ben Buie, grain team leader at MaxYield Cooperative. “As long as you’re putting in prices you’re happy with, there is no drawback to a firm offer.”

This year, MaxYield bought 30 percent of its expected corn harvest this fall at an average price of $3.52 per bushel. Contrast this with mid-September prices that hovered around $2.90. MaxYield also bought ahead 35 percent of its expected soybean harvest at $9.42 per bushel. The mid-September price was closer to $7.30.

So what’s holding you back from using a firm offer? “People are often afraid they’re going to sell into a market that’s rallying hard,” Buie said. “But if this happens and the market goes up, just sell some more grain.”

Even if you don’t hit the market high, you’ll still be selling at profitable levels. “A lot of offers fill in the middle of the night,” Buie said. “With firm offers, you can still have the market working for you, even when you’re asleep or on vacation. You don’t have to be plugged into it all the time.”

What if you change your mind? As long as your offer hasn’t filled, you can change the target price or even cancel the order. “I encourage you to try putting in some firm offers this winter and see how they can work for you,” Buie said.

Contact your nearest MaxYield location to get started with the firm offer program. ■

WHAT’S HOLDING YOU BACK?Take Advantage of MaxYield’s Firm Offer Program

KEEP AN EYE ON YOUR GRAIN Many farmers in our area are storing grain, and it’s important to manage the grain quality properly on the farm.

“Coring your bins later this winter before temperatures start heating up will be really important if you plan on hanging onto grain,” said Ben Buie, grain team leader at MaxYield Cooperative. “Insects feed on broken kernels and fines, which concentrate in the center of the bin. Coring will help address this.”

Also, keep MaxYield’s firm offer program in mind. “Consider placing some offers so you can move some grain this winter,” Buie said. ■

NEWS BRIEFS



LIVING HERE

What a year 2018 has been. There were challenges nearly every step of the way—from multiple snow storms in April, to flooding in June, to big rain delays at harvest.

It wasn’t easy, but you made it. You persevered. You got the job done…and MaxYield was there every step of the way.

Now’s a good time to look back on the year and see what lessons can be gleaned. It’s possible to grow from a tough year and spot new opportunities, if you’re willing to invest some thinking time.

We do the same thing as we focus on opportunities that benefit you. These solutions include crop-input financing options, grain marketing tools from firm offers to new average pricing tools and delayed payment fuel programs that help you manage cash flow.

Yes, agriculture is cyclical and comes with its share of challenges, but there will always be a need for hard working, skilled people who can provide valuable solutions. MaxYield is up to the challenge. We look forward to helping you maximize these opportunities in 2019 and beyond. ■

WIDE-OPEN OPPORTUNITIES


PO Box 49West Bend, IA 50597www.MaxYieldCoop.com

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is our savings account that provides the liquid assets needed to operate the business. • MaxYield increased retained savings, which now totals nearly $52 million. In 1997, retained