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2015 UFC Fieldviews - 02 Summer

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Fieldviews is a publication of United Farmers Cooperative located in Southern Minnesota.

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ur leadership team recently revisited the mis-sion statement of United Farmers Cooperative. Board Chairman Jeff Franta talks about this on page 7.

Both board and management wanted more clarity on what UFC is all about and how we can utilize our unique identity to keep pace with the needs of our customers and their communities in this fast-changing global world. We felt so strongly about defining our niche that we hired a consultant to guide us through a mini-retreat and help us craft an answer to the question, “Who are we?”

What emerged from this intense session was a new UFC vision statement with a decidedly familiar refrain. It reads: “We provide extraordinary value to our communi-ties through the principles of cooperative ownership.”

This vision statement confirms that our strength, first and foremost, is our foundation as a member-owned busi-ness since 1915. Today, as was true 100 years ago, we can do things together that may be too expensive, out of reach, or impractical to do as individuals.

Keeping this vision in mind, we can and will use the cooperative strength of UFC to accomplish things that are extraordinary. Read about some of these extraordinary things in this issue of the Fieldviews magazine.

Sincerely,

Jeff NielsenGeneral Manager/CEO

O

SEE YOUR FIELDS FROM SATELLITE,GROUND AND OTHER PROFITABLE ANGLES.

THE R7® TOOL. AN ENTIRELY FRESH LOOK AT YOUR FIELDS. The R7® Tool by WinField generates field performance information about every acre and matches crop inputs and decisions to each field’s – and zone’s – potential. By combining satellite imagery with local seed and crop protection data from the Answer Plot® Program, you’ll learn which products and practices will produce the best yield potential.

Contact us for more information or to schedule an appointment.

Answer Plot, CROPLAN, NutriSolutions, R7 and WinField are registered trademarks of Winfield Solutions, LLC.

© 2013 Winfield Solutions, LLC

WE PROVIDEWE PROVIDE

Extraordinary ValueExtraordinary Value

3

INSIDE THIS ISSUE:We Provide Extraordinary Value . . . . . . . . . . . . . . . .Page 2

We Can Do Better Together . . . . . . . . . . . . . . . . . . . Page 4

Serving Farmers in the Next Generation. . . . . . . . . . .Page 6

Celebrating 100 Years of Cooperation . . . . . . . . . . . Page 7

Everything Must Pass a Test . . . . . . . . . . . . . . . . . . .Page 7

Plato Dairyman Always Trying New Ideas . . . . . . . . . Page 8

Expert Team Advises Local Dairies. . . . . . . . . . . . . . .Page 9

Corn: What Will Happen vs. What Usually Happens. .Page 10

Prepare for Weather, Financial Challenges . . . . . . . .Page 13

Two Options for Buying Propane . . . . . . . . . . . . . . Page 14

Leak Testing Keeps You Safe. . . . . . . . . . . . . . . . . .Page 15

New Germany Added to C-Store Chain . . . . . . . . . .Page 15

Serving Customers With Technology, Ingenuity . . . . Page 18

Expanding Winthrop’s Blending Capacity . . . . . . . . Page 19

Developing Today’s Talent into Tomorrows Leaders . Page 19

UFC Farm Supply Customer Spotlight. . . . . . . . . . . Page 20

Our Unique Precision Ag Solution . . . . . . . . . . . . . .Page 22

Announcing the Co-op Cash Loyalty Program . . . . . Page 23

UFC DIRECTORYAgQuest FinAnce—507-647-6606 ext. 6749

Bird islAnd elevAtor—320-365-4012

Brownton shuttle—320-328-4002

cologne Feed Mill—952-466-5518

corporAte oFFice—507-647-6600

gAylord Ag center—507-237-4203

gAylord c-store—507-237-2281

giBBon c-store—507-834-6615

grAin MArketing—507-647-6601

green isle c-store—507-326-5866

hAMBurg Ag center—952-467-3111

hector Ag center—320-848-2296

klossner elevAtor—507-359-4519

klossner stAtion—507-359-4503

lAFAyette Ag center—507-228-8224

lAFAyette c-store—507-228-8364

lAFAyette elevAtor—507-228-8221

lAFAyette seed shed—507-228-8669

livestock service center—507-359-2970

new gerMAny c-store—952-353-2601

norselAnd Ag center—507-246-5300

risk MAnAgeMent—507-647-6613

uFc FArM supply-Burnsville—952-890-5296

uFc FArM supply-lesueur—507-665-6421

uFc FArM supply-MAple plAin—763-479-2123

uFc FArM supply-wAconiA—952-442-2126

wAconiA energy oFFice—952-442-2126

winthrop c-store—507-647-5931

winthrop cheMicAl wArehouse—507-647-6615

winthrop elevAtor—507-647-5311

winthrop energy oFFice—507-647-6602©2015 United Farmers Cooperative. All Rights Reserved. Published in partnership with VistaComm®

(www.VistaComm.com).

SEE YOUR FIELDS FROM SATELLITE,GROUND AND OTHER PROFITABLE ANGLES.

THE R7® TOOL. AN ENTIRELY FRESH LOOK AT YOUR FIELDS. The R7® Tool by WinField generates field performance information about every acre and matches crop inputs and decisions to each field’s – and zone’s – potential. By combining satellite imagery with local seed and crop protection data from the Answer Plot® Program, you’ll learn which products and practices will produce the best yield potential.

Contact us for more information or to schedule an appointment.

Answer Plot, CROPLAN, NutriSolutions, R7 and WinField are registered trademarks of Winfield Solutions, LLC.

© 2013 Winfield Solutions, LLC

4 www.ufcmn.com - EXTRAORDINARY VALUE IN BUSINESS

We Can Do Better TogetherBy Jeff Nielsen, General Manager/CEO

he last two decades of financial statements sup-port the efficacy of our newly adopted vision: “We provide extraordinary value to our communities through the principles of cooperative ownership.”

The assets of United Farmers Cooperative have increased from $19 million in 1996 to $141 million in 2014. Even more telling is the member-owned portion of those assets, which has grown from $10 million in 1996 to $63 mil-lion in 2014.

By throwing out these numbers, I do not mean to toot our own horn. This isn’t about getting bigger. It is an example of what can be done through the cooperative business model to honor both our mission and our vision to provide extraor-dinary value.

As UFC’s leadership continues to evaluate projects and opportunities, it sometimes involves risk and stepping out on the edge; but anything extraordinary requires that.

“America was not built on fear,” said Harry S. Truman, our country’s 33rd president. “America was built on courage, imagination and on an unbeatable determination to do the job at hand.”

I imagine that is how agricultural cooperatives began a century ago. Farmers got together and decided that they had to do something about low grain prices and high input costs. Many of these associations started with nothing but a little personal equity put up by the charter members and a whole lot of fierce resolve that shouts, “We can do better together!”

A modern version of Truman’s quote might add “science” and “technology” to the list of things that built America. The speed at which information and technology has evolved is in itself extraordinary. This rapid information exchange forces us to think differently. We can’t hesitate. We have to have a plan, be intentional, and keep going forward because that is what our producers, members, and communities have come to expect.

UFC is not afraid to step up and take a risk on behalf of its members to find a better way, but we will always be extremely diligent in making sure that whatever we are doing is studied,

verified, and planned so as not to take on too much risk. We will also make sure that our actions do, in fact, have the potential to “provide extraordinary value” to our members and their communities.

RS Fiber CooperativeIn recent years, several hardworking individuals have

collectively worked to bring another cooperative to life in the Sibley County area. The project, referred to as RS Fiber Cooperative, will bring high-speed Internet access along with other associated technical services to every farm, home, and business in its service area.

The need for this type of high-speed access can be likened to the need for electricity nearly a century ago, when rural electric cooperatives were formed. They stepped in to light up America’s rural areas when traditional providers would not because of the higher cost of providing the service.

RS Fiber Cooperative is on the verge of breaking ground. The UFC board and leadership team, on behalf of our mem-bers, has been very involved in providing guidance and capital to get this project started. This project is a great present-day example of how individuals can collectively pull together for the greater good of the community. ●

Co-op business principles plus unbeatable determination combined with a little risk can find a better way.

T

Our Vision: “America was not built on fear. America was built on courage, imagination and on an unbeatable determination to do the job at hand.”

—Harry S. Truman, 33rd President ofthe United States of America.

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hen, in 2011, UFC moved its grain bin and grain handling design and construction ser-vices to Gaylord, along with an inventory of short line

equipment. “We actually reopened and revital-

ized this location, and the community has been very receptive to that,” says location manager Kevin Wenninger. “We added onto the building and basically brought another business back to town.”

Today, grain construction man-ager Steve Heldt maintains an office at UFC’s Gaylord Ag Service Center. From here, Steve designs on-farm grain storage and handling projects for the cooperative’s customers and directs a five-person construction crew that builds these projects.

“We offer free estimates and CAD designs,” says Kevin. “Farmers can come in and see their projects on a big screen TV.”

Besides building grain handling projects from scratch, UFC’s construc-tion division adds to existing facilities,

conducts pre-season leg and system inspections, and performs in-season repairs.

The division handles GSI and Brock bins, Farm Fans and GSI dryers, and Sudenga, Westfield, and Sukup augers.

“We also do a pre-season dryer inspection, just like the leg inspections,” says Kevin. “If you want an inspection before harvest, call Steve at 507-237-4203 and he’ll get you on the list.”

Other services at GaylordArea crop producers also stop at the

Gaylord Ag Serivce Center to talk with sales agronomist Gary Wentzloff, who has years of experience making fertilizer and chemical recommendations.

“We continue to handle anhydrous out of our Gaylord Ag Service Center,” says Kevin. “The dry fertilizer and chemicals come out of Winthrop, just 10 minutes to the west.”

LP driver Dennis Busse continues to deliver propane to farm, commercial, and residential customers out of our Gaylord Ag Service Center, as he has for 25 years.

What is new, as of the 2011 reopen-ing of the Gaylord Ag Service Center, is the shortline farm equipment business that is expanding at the speed of the computer.

We sell new and used skid-loaders, spring and fall tillage implements, grain carts, sprayers, and manure handling equipment.

“We handle Wil-Rich, Kuhn-Krause, Great Plains, Wishek, H&S, Demco, Meyer, and Parker,” says Kevin, listing the brands of equipment he offers for sale.

He has some inventory on his lot, but the Gaylord location manager con-ducts more and more of his shortline business over the Internet.

“We’re sending a skid-loader to a customer in Texas,” he reports. “Our market is bigger than our physical trade territory these days.”

Another part of Gaylord Ag Service Center’s business is lawn and garden equipment. Kevin proudly maintains a display of Exmark mowers, Echo chains and hand-held power units, and Cub Cadet tractors as you walk in the front door of the ag center.

“We want to, as a UFC location, serve the farmers in the next genera-tion,” says Kevin. “We want to talk with the farmers and listen to them and see what we can do to help them do a bet-ter job in their operations—that’s our goal in a nutshell.” ●

T

6 www.ufcmn.com

By Kevin Wenninger, Gaylord Location Manager

Serving Farmers in the Next Generation

When Ag-Land Co-op merged with United Farmers Cooperative in 2006, Ag-Land’s c-store became a United Xpress c-store and Ag-Land’s office on the west edge of Gaylord closed— except for LP delivery and filling NH3 nurse tanks.

LOCATION SPOTLIGHT—GAYLORD AG CENTER

Kevin Wenninger with NH3 storage tank.

Exmark mowers and Echo power equipment display at Gaylord.

olatility and extremes in weather and markets appear to be the new normal. Consequently, your board of directors and management

team are being even more diligent and intentional about identifying future chal-lenges and preparing to meet them.

We rely on analysts with regional suppliers like Land O’Lakes, CHS, and CoBank to interpret what is happening in our industry and help us stay ahead of the changes. We utilize emerging technology in our operations, and we keep you abreast of the latest scien-tific developments so you can make informed decisions on your farm.

I assure you that UFC’s management team is rock solid and ready for any challenge that lies ahead. The board and management continually evaluate and monitor potential opportunities to serve you better and more efficiently. We regularly circle back to the reason we exist: to supply our customers with

technology, products, and services in a manner that is extraordinary enough to add value to their lives. Every decision must pass this test.

We have a diversified board that works well together and has a height-ened awareness of our responsibility to watch over your equities. For this very reason, at a one-day retreat planned for July, UFC’s board will focus on how profits may be distributed to members in the future. We regularly participate in seminars such as this one, to sharpen

our skills and abilities to safeguard your investment.

Thinking of the many directors who have guided this cooperative through-out its history, I’m both honored and humbled to be the board chairman in this centennial year. As do other direc-tors currently on the board, I follow in the footsteps of family members who have served before me. Thanks for giv-ing me this opportunity.

Finally, I encourage you to talk with any board member if you have ques-tions, concerns, or suggestions. Your loyalty and support of UFC is the key to our success. Together, we can be a positive influence in the farming com-munities where we live and serve.

I hope to see each of you at our 100th anniversary event on Friday, Aug. 21, at our home office location in Winthrop. Committed, persevering people like you are the reason we’re celebrating a century of continual growth and success. ●

V

EXTRAORDINARY VALUE IN THE BOARDROOM - 7

By Jeff Franta, UFC Board Chairman

Everything Must Pass a Test

Our Mission: To supply our customers with

technology, products, and services in a manner that is extraordinary enough

to add value to their lives.

We’re almost through the current fiscal year–our 100th in business. I’m pleased to report that United Farmers Cooperative is on track for a good year, despite last year’s flooding and early frost, which greatly reduced our grain handle.

8 www.ufcmn.com - EXTRAORDINARY VALUE ON THE FARM

o many residents of the central Minnesota town of Plato (popula-tion 310), the dairy located just a mile north of town was a mys-tery—that is, until one day last summer when Roger and Peggy Engelmann opened the doors of their milking operation to the public. Although rain cut short the tour, an estimated 75 people

toured Engelmann Dairy.“People who had lived in Plato for years came to our open house and

told us they never knew there was such a large dairy nearby,” says Roger.The Engelmanns’ plan to hold another open house this summer.

Making good decisionsRoger grew up on this same farm north of Plato. His father and mother,

Elmer and Norma Engelmann, milked 40 cows and had a small farrow-to-fin-ish hog operation. In 1973, Roger and his wife, Peggy, joined his parents on the farm.

“We formed a partnership and farmed together until I bought my dad out in 1986,” says Roger.

The McLeod County dairyman recounts some milestones:

1988 – The Engelmanns added to their stall barn and increased the dairy herd to 88.

1993 – The couple built a free-stall barn and milking parlor, expanding to 160 head. “That was the biggest step in our progression,” says Roger. “We

got more labor efficient and things started to work a lot better.”

1997 – Roger and Peggy doubled their herd to 320 cows.

1999 – Son Chris Engelmann returned to the farm.

T

At the Professional Dairy Conference in January, the Engelmann family received Outstanding Dairyman Award from Form-A-Feed. Pictured L to R: Kristin, Josh, Roger, Peggy, Teresa, Samantha, and Chris.

Roger and cows in his transition barn.

Feeding colostrum to baby calves.

Plato Dairyman Always Trying New Ideas

Every January, United Farmers Cooperative co-sponsors the Professional Dairy Conference with Form-A-Feed Inc. At this conference, industry leaders give their newest findings about all aspects of dairying.

The Engelmann family received the Outstanding Dairyman award at the January 2015 conference. Like the Engelmanns, many dair-ies served by our UFC Dairy Team do well among their prospective breed associations.

UFC currently employs nine dairy consultants. Three of our consultants have already retired

from full-time careers in animal nutrition. They con-tinue to work with dairy producers because they truly enjoy helping each farm improve.

The years of practice and breadth of experience represent-ed by our consultants allows for a true team approach to addressing specific issues on local dairies.

At the same time, we continue to add fresh new thinking to the UFC Dairy Team. This summer, Aly Schwartau, a recent graduate of the University of Minnesota, will join UFC as a dairy specialist. ●

Expert Team Advises Local DairiesBy Kelly Powell, UFC Feed Product & Sales Manager

UFC Dairy Team: back L to R: Tobe Baumgard, Bob Rehbein, Robert Westman, Perry Conley, and Rich Schug. front L to R: Vern Oraskovish, Jim Linn, Bob Nelson, and Roger Landon.

2001 – Son Josh Engelmann returned to the farm.

2003 – The brothers bought Woodland Dairy, a 1,200-cow dairy near Waverly.

2005 – Roger and Peggy increased their herd to 550 at the Plato site, where calving for both herds takes place under

24-hour supervision.

2009 – Chris and Josh bought a heifer-raising facility.

“We work together with the cattle and all the cropping,” says Roger, refer-ring to the partnership with their sons. “They own theirs and we own ours, but we all work together.”

Last year, the Engelmanns and their sons were named the McLeod County Farm Family of the Year.

“They recognized us for being suc-cessful as a family farm,” says Roger. “Even though the size of our business is above average, we’re still family run and owned.”

With 16 employees besides himself and Peggy working on the Plato site, Roger says he has no plans to further expand the dairy.

“We’re happy at the size we’ve come to,” he states. “It’s a good working size, and sometimes you’ve just got to take a breath and leave things the way they are for a while.”

Roger and Peggy have one more very important helper. “In the summertime, our granddaughter Samantha, who lives in Texas, comes for two months to help on the farm,” Roger says. “She has been doing that ever since she was 6 years old and now she is 14.”

Choosing good advisorsRoger and Peggy started doing their

nutrition work with Waconia Farm Supply at Cologne about 10 years ago and have continued to purchase their feed through United Farmers Cooperative.

“We’ve had a good relationship with UFC ever since they took over the Cologne mill,” says Roger. “They’ve helped me gain production on my cows and keep our feed costs in line by using as much homegrown feed as we can.” The dairy’s herd average, now at 28,000 pounds of milk per cow, keeps rising.

UFC dairy specialist Bob Rehbein works with Engelmann Dairy.

“Bob walks through the barn every week, observes the cows, and makes recommendations,” says Roger. “By doing that, we’ve been able to make corrections rapidly and avoid problems.”

Another key to the Engelmanns’ suc-cess is being open-minded.

“I’ve attended seminars put on by the University of Minnesota, I’ve traveled to the Western Dairy Conference several times, and I’ve taken advice from several feed additive companies,” says Roger. “I’m always trying new ideas as they come out. Some work and some don’t, but I’m always trying to adapt.”

Roger, Peggy, and their sons must be doing something right. People have vis-ited their dairy operations from all over the world. ●

Front view of Engelmann Dairy.

10 www.ufcmn.com - EXTRAORDINARY VALUE IN GRAIN MARKETING

What Will Happen vs. What Usually HappensBy Marc Peterson, Director of UFC’s Risk Management Department

rom April to July, the market is very sensitive to any event that may be perceived as crop damaging and could eventually lead to a shortage. Usually this

is some kind of a weather scare that results in substantial end-user buying. If such an event did not happen or was not significant enough to rally prices, it is likely there is some old crop corn and beans in your grain bins.

One of the worst situations you can find yourself in as harvest approaches is having a crop in the bin and a crop

in the field. See the 5-year and 15-year Historical Average charts for December corn.

On the 15-year Historical Average chart, the market makes a low in July and then moves higher into the last part of August. On the shorter 5-year Historical Average chart, which includes 2010, 2011, and 2012, this seasonal event gave producers a huge selling opportunity.

This recent pattern has boosted the popularity of the wait-and-see market-ing plan and has producers hanging on

to their crops later into the marketing year.

Last year is the most recent example of the wait-and-see marketing plan not working. After making a seasonal high the first week of May, prices started to slide lower and did not significantly rally until after the average harvest low in October.

Will that happen again this year? Only time will tell which scenario plays out in the next four months. Whatever the case, you need to decide how you can maximize the gain (and minimize the loss) to your farming operation in the 2015 crop year.

The appropriate market strategy will vary according to each individual farm-ing operation and what market condi-tions are the first week in July.

UFC’s Grain and Risk Management Team is ready to help. Give us a call. ●

FIf the grain markets followed their seasonal pattern and rallied to give producers a selling opportunity in June, you should have sold the grain in your bins and also sold some new crop.

This material has been prepared by a sales or trading employ-ee or agent of MPT Brokerage Services and is, or is in the nature of, a solicitation. This material is not a research report prepared by MPT Brokerage Services. By accepting this com-munication, you agree that you are an experienced user of the futures markets, capable of making independent trading decisions, and agree that you are not, and will not, rely solely on this communication in making trading decisions.

DISTRIBUTION IN SOME JURISDICTIONS MAY BE PROHIBITED OR RESTRICTED BY LAW. PERSONS IN

POSSESSION OF THIS COMMUNICATION INDIRECTLY SHOULD INFORM THEMSELVES ABOUT AND OBSERVE ANY SUCH PROHIBITION OR RESTRICTIONS TO THE EXTENT THAT YOU HAVE RECEIVED THIS COMMUNICATION INDIRECTLY AND SOLICITATIONS ARE PROHIBITED IN YOUR JURISDICTION WITHOUT REGISTRATION. THE MARKET COMMENTARY IN THIS COMMUNICATION SHOULD NOT BE CONSIDERED A SOLICITATION.

The risk of loss in trading futures and/or options is substantial and each investor and/or trader must consider whether this

is a suitable investment. Past performance, whether actual or indicated by simulated historical tests of strategies, is not indicative of future results. Trading advice is based on infor-mation taken from trades and statistical services and other sources that MPT Brokerage Services believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgement at a specific time and is subject to change without notice. There is no guaran-tee that the advice we give will result in profitable trades.

DISCLAIMER

CORN

© 2013 Syngenta. Agrisure Artesian,® NK,® the Alliance Frame, the Purpose Icon and the Syngenta logo are trademarks of a Syngenta Group Company. MW 1LMS3022 10/2013

GROW MORE CORN. ASK US HOW.

IT MAKES COMBINES MORE FUN TO DRIVE.

© 2015 CHS Inc.

STRONGER ROOTS. HEALTHIER CROPS. BETTER YIELDS.

XLR-rate® liquid starter and foliar fertilizers promote early green-up in colder, wet soils and stronger root development and plant recovery. They’re a proven way to overcome challenges for a great harvest. Ask your local agronomist about how XLR-rate can improve yields and profitability.

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Clockwise Performance Services, provided by members of the Form-A-Feed team, is designed to evaluate main areas of opportunity in your business to implement and get the best results of your herd’s nutrition program.

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Multi-species topics and more customizable options available.

Contact your Form-A-Feed or UFC representative for more information about how Clockwise Performance Services can help your business!

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• Blend Hydro-Lac® into your TMR before and during humid hot weather. • Hydro-Lac cools cows from inside out. • Hydro-Lac improves energy status.• Works great for all stages of production, including transition cows.• Herds on Hydro-Lac show improved performance and recovery from heat stress.Download the new free Hydro-Lac

heat stress app! Contact your Form-A-Feed or UFC representative for more information about adding Hydro-Lac to your feeding program!

Visit www.formafeed.com for details.

Contact your UFC representative for more information about how Clockwise Performance Services can help your business!

Contact your UFC representative for more information about adding Hydro-Lac to your feeding program!

EXTRAORDINARY VALUE IN MANAGING RISK - 13

Prepare for

By Vince Sloot, AgQuest Business Relationship Manager/Crop Insurance Specialist

t may be hard to know at this point in the season if an insurance claim will result; but make plans now to keep accurate records during harvest, just in case you find yourself in the claims process. Don’t know what to do? Call the AgQuest team.

Timely, well-thought-out preparation beats the best exe-cuted rescue plan anytime.

Also, lower cash flows and higher capital expenditures in recent years are putting the squeeze on some balance sheets. Don’t wait until the 11th hour to address these issues or to make plans for the 2016 crop year.

Tighter times mean sharper pencils. Some form of restruc-ture may be needed, or you may simply be looking at the best ways to manage your tax liability with the help of leas-ing or loans. Start sooner, rather than later, by evaluating your options with the AgQuest team at United Farmers Cooperative.

Cash preservation will be vital for the foreseeable future.

Review your resourcesYou may be asking, “Who is this AgQuest team anyway?”

A financial services company established 22 years ago, AgQuest’s mission parallels that of UFC: “To supply our cus-tomers with technology, products, and services in a manner that is extraordinary enough to add value to their lives.”

UFC is one of 11 ag retailers that own AgQuest. AgQuest maintains an office in UFC’s Winthrop headquarters, which gives us great connectivity to you and the local farm scene.

We offer a full array of financial products, including competitive operating, equipment, real estate, livestock, and facility loans. Leasing works well for some producers, so AgQuest has a separate division devoted solely to this option.

AgQuest’s insurance division offers crop and livestock cov-erage supported by a seasoned team throughout the Upper Midwest. Our farm property and liability team is equally rock-solid and growing by leaps and bounds.

Don’t be afraid to ask for a second opinion. We all use this, whether we’re considering a once-in-a-lifetime construc-tion project, an entirely different production technique, a unique medical situation, etc. Advice is free, and the informa-tion you receive from AgQuest may prove invaluable.

Here’s to your success in 2015 and beyond! ●

For more information on the risk management tools available to you, contact UFC’s AgQuest team: Vince Sloot at 507-995-9029, Tim Lewis at 612-756-2903, or Dawn Wickenhauser at 507-647-6606 x 6749. You may also email us at [email protected], [email protected], and [email protected], or visit us online at www.agquest.net.

IIt is July, but I bet the upcoming harvest is not far from your mind.

Weather, Financial Challenges

14 www.ufcmn.com - EXTRAORDINARY VALUE IN ENERGY

Two Options for Buying PropaneBy Andrea Helget, Joni Hedtke and Ruth Domeier, UFC Energy Department

he first purchase option is an LP Supply Agreement in two versions: prepay and non-prepay. With this agreement, many customers have been able to lock in fixed prices for the upcoming heating season and take advantage of our scheduled delivery service.

With the prepay purchase agreement, a customer signs for a certain number of gallons and pays for all of those gallons up-front. With the non-prepay purchase agreement, a customer signs for a certain number of gallons and pays for those gallons as they use them. The non-prepay per-gallon price is a little higher than the prepay per-gallon price. However, both are guaranteed prices and the gallons contracted are guaranteed.

Customers interested in an LP Supply Agreement can contact UFC’s Energy Department at 507-647-6602 or 888-832-5734 and we will evaluate your usage history and help you decide how many gallons to lock in for the upcoming heating season.

Customers signing an LP Supply Agreement should be aware that they will be liable for any unused gallons on the agreement. We offer LP Supply Agreements to our home heat, commercial, livestock operations, grain dryers, and transport customers.

Stabilizing your energy paymentsPrior to the 2014-2015 heating year, UFC Energy implement-

ed a new way of buying propane called the Secure Payment Plan.

With Secure Payment, we take a three-year average of each customer’s propane usage, assign a fixed price per gallon, and divide their payments into 12 monthly installments. Like the LP Supply Agreement, participation in this plan automatically enrolls the LP customer in scheduled delivery.

Participants in the Secure Payment Plan may have UFC conve-niently take the agreed-upon amount out of their bank account monthly via ACH or with a scheduled payment.

Throughout the year, UFC will monitor the customer’s pro-pane usage and make adjustments to the payment if more or less propane is used than anticipated.

Because of its ability to stabilize energy budgets, participa-tion in the Secure Payment Plan doubled from the 2013-2014 heating season to the 2014-2015 heating season. Most Secure Payment customers use LP for home heating, although a few commercial businesses are on the plan.

If you use LP and want to sign up for either the Supply Agreement or the Secure Payment Plan, call the Energy Department at 507-647-6602 or 888-832-5734. If you are inter-ested in becoming an energy customer of UFC or in switching out a furnace from fuel oil to LP, feel free to contact us and we’ll get you set up. ●

Note to LP users: Although Supply Agreements and the Secure Payment Plan come with scheduled delivery, we encourage you to keep an eye on your tanks. If you are using more LP than in the past, you will notice it, and we can look for possible leaks.

T

LP Supply Agreements or Secure Payment Plans automatically enroll LP customers in scheduled delivery.

Last summer we offered our LP customers a couple of purchase options, which worked well for them. We’ve just come through another home heating season and want to tell you about these options as you consider how to buy your propane for the 2015-2016 season.

UFC CONVENIENCE STORES

14 www.ufcmn.com - EXTRAORDINARY VALUE IN ENERGY EXTRAORDINARY VALUE IN ENERGY - 15

Leak Testing Keeps You Safe

New Germany Added to C-Store Chain

By Doug Lund, UFC Energy Operations Manager

By Darv Turbes, UFC Vice President of Energy

FC is taking the initiative to ensure its LP custom-ers’ continued well-be-ing by performing leak tests whenever service is

interrupted. Oftentimes gas service is dis-

continued while a new hot water heater, furnace, stove, or clothes dryer is installed. National Fire Protection code requires a leak test be completed on a propane system whenever service is interrupted. Performing leak tests help stay on top of the integrity of the propane system and the safety of our cus-tomers’ homes and businesses.

While performing the leak test, we will also inspect the regulators on both the tank and home to see if they are within the manufacture date requirement.

If we must replace any out-of-date regulator, or if we must install a shutoff valve or other parts to bring the system up to code, the customer will be asked to share in the cost.

In most cases, we must enter the building to inspect the line delivering LP to the appliances. In that case, we will ask the customer to make arrangements to let the LP service technician or delivery driver in.

We are currently calling custom-ers whose systems have not been inspected recently. If you would like to schedule a leak check, or if you have any questions about our leak check policy, contact UFC’s Energy Office at Winthrop at 507-647-6602 or Waconia at 952-442-2126. ●

ictured above with its green BP colors, the New Germany station has since been rebranded as a United Xpress convenience store providing Cenex® petroleum products (see

photo below). Our new “Co-op Cash” loyalty program

will soon be introduced at the New Germany C-Store this summer.

The New Germany station is the sixth convenience store and fueling station in the United Xpress retail chain. The same staff that has served customers at this location in the past will continue to serve you in the future.

This fall, we intend to rebuild the diesel fuel island of the New Germany station. The island will feature a canopy, high-volume diesel fuel pumps, and three grades of diesel fuel, in addition to a DEF fluid dispenser. ●

U

P

Leak tests keep your home and business safe.

United Farmers Cooperative has purchased the BP con-venience store and fueling station on Highway 7 at New Germany. UFC’s bulk refined-fuels plant is connected to the back side of this station, and the station is in a great location to fully serve the cooperative’s patron base.

Before

After

AgQuest Insurance Agency is an Equal Opportunity Provider.

Vince Slootcell [email protected] E. 4th St., Winthrop

“Vince is very knowledgeable on not only the products but also my own farms and fields. Also, always returns my emails and calls. “ ~Eric

“I started with AgQuest because I felt most crop insurance agents didn’t fully understand the products. Vince explains and goes out of his way to insure all options have been explained. He also adds his ideas as to new trends and products in the crop insurance area.” ~Larry

“I have worked with Vince Sloot the longest. He has helped us with our farm purchase & crop insurance. Being new to farming he gave me the knowl-edge - help I needed. He treated us like a part of family. What a great guy both personally and professionally. Tim Lewis is also the same mold of a person, very knowledgeable. Thank You!” ~Craig

“I have only farmed for 3 yrs now. Not knowing much about insurance - Vince went through it very thoroughly every year to make sure I understand all of it. “ ~Fred

“I think Vince Sloot and Tim Lewis are second to none in understanding the specifics of the complicated insurance needs of most farmers today.” ~Randy

Read what our customers have to say about AgQuest Insurance and your local agents:

Learn more about AgQuest Insurance. Our knowledgeable staff will help you navigate the rules and regulations and find strategies that help you mitigate risk.

Insurance needs can be complex, let us help you identify the right coverage for your operation.

Together... We Find The Way!

18 www.ufcmn.com - EXTRAORDINARY VALUE IN AGRONOMY

Serving Customers WithTechnology and IngenuityServing Customers WithTechnology and Ingenuity

aron is in charge of personnel and equipment for all dry fertilizer and anhydrous that UFC applies, decides what equipment is needed, and trains and continually updates applicators. In season, he dispatches and keeps track of all personnel and

equipment based at the Winthrop plant.A large screen overlooking the loading bays at the

Winthrop dry plant shows Aaron the position of every tender and applicator.

“Each vehicle is outfitted with GPS,” he explains, “so we know where our applicators and trucks are at all times and can coordinate the next loads.”

Aaron employs the latest Raven Viper controllers with auto-steer in his fleet of applicators, which includes 16 dry fertilizer machines able to spread multiple products in one pass.

“We’re able to pull data off the equipment monitors so customers know exactly what was done in their fields and can even use it in their farm programs,” says Aaron.

Pre-loading at WinthropAs farmers acquire larger equipment that can put their

crops in faster, UFC had to find a way to keep pace. “One thing we’re doing is pre-loading our tenders at the

Winthrop plant, starting at 4 a.m.,” he states. To keep the regular crews fresh, a pre-load crew of two

mechanics, a blender, loader, and office employee fill the trucks and attend to any mechanical problems before the regular crews arrive.

“By sunrise, we are out in the field applying,” states Aaron, who estimates that the pre-loading procedure, insti-tuted in 2015, has increased the plant output by 20%.

At UFC, everyone is cross-trained and focused on getting the job done—whether working in grain, feed, construction, farm equipment, or energy. But efficiency in operations is not all it takes to keep up with the customer.

“The extra blending capacity we’re adding to Winthrop next year and the prospect of bringing a Brownton fertilizer hub on line is important to staying ahead of the game,” says Aaron. “We can buy all the equipment we want, but we have to have the ability to load it.”

Aaron praises the UFC board and management for invest-ing in new equipment and plants.

“They are willing to back those of us in operations,” he states. ●

A

Aaron Schwab joined UFC full-time after partic-ipating in the cooperative’s summer internship program. Aaron started as a tender driver, and over the past 14 years, he has worked his way up to Crop Nutrient Operations Manager.

A large screen in Winthrop fertilizer plant displaysGPS tracking of UFC’s entire application fleet.

UFC’s Soilection machines spread multiple products in one pass.

Pre-load crew arrives at 4 a.m. to fill trucks and attend to any mechanical problems. Preloading has increased output by 20% at our Winthrop plant.

Aaron Schwab

EXTRAORDINARY VALUE IN AGRONOMY - 19

Expanding Winthrop’s Blending Capacity

Developing Today’s Talent into Tomorrow’s Leaders!

By Dave Eckhoff, Vice President of Agronomy

By Ryan Ponwith, Master Agronomy Advisor

t Winthrop, we’re planning to upgrade one of the existing towers at our dry fertilizer plant. This will increase our blending capacity up to 35%, increas-ing the speed and volume at which we

will be able to apply nutrients to your fields as your planting equipment gets larger and faster.

We’ll also upgrade the computer system at Winthrop with the most up-to-date software for automated blending. In doing so, we’re preparing for operations at the proposed Brownton termi-nal (spring of 2017), which will use the same blending system. We’ll be training operators for the Brownton blending tower before it’s even built. Cross-training like this gives us options to move personnel between plants.

We expect to switch out the tower and the automated blend-ing software at the Winthrop plant this winter, so that it is ready for the spring of 2016.

Brownton updateThis spring, foundational borings were completed to estab-

lish an exact location for the proposed hub fertilizer plant near our grain rail facility at Brownton. Currently we are working with design teams on turn lanes for a new south entrance at the Brownton site. We want to get traffic flow exactly right for a plant of this size.

Construction on the Brownton hub plant could begin in the spring of 2016. For more detail on this project, see “Building for Future Needs” on page 6 of our last edition of Fieldviews.

Hamburg project startsThis summer, we’ll break ground on a new ag center at our

current Hamburg NH3 site. The ag center will feature an inven-tory of bulk seed, complete with a state-of-the-art seed treater, conveyors, and full automation.

This improvement will be convenient for our Hamburg area customers who haven’t had bulk seed or seed treatment avail-able in the past.

Our goal is to have the shell of the ag center standing by the time the snow flies, so we can work on it over the winter and open the center to customers by spring 2016.

Jay Walterman, UFC’s Vice President of Farm Equipment & Construction, has stepped in and taken over the site design at Hamburg. This is true full service, when you can do things inter-nally with the talent and technology you have, in order to serve farmers better. ●

t United Farmers Cooperative, we highly value our annual internship program when it comes to growing our own pool of talented employees. UFC has a long track record of

hiring back interns that show interest in working for the cooperative. I am one of those former interns.

From the end of May until mid-August, the interns will work in our patrons’ fields, collecting samples and analyzing data. Much of this work will be done as part of the United Insights program outlined on page 22. The experience gained will help these young men and women succeed in the future. It also gives the students and the cooperative a chance to gauge each other and decide if they want to pursue further employment.

We’ll have interns this summer from South Dakota State University, North Dakota State University, University of Wisconsin-River Falls, University of Minnesota, South Central College, and Ridgewater College. The majority of them grew up in this area. You will recognize many of their family names.

By employing these students in a summer intern-ship program, we’re giving them a chance to work in their field of interest and develop their skills in agron-omy, with the hope and expectation that some will return to UFC when they graduate.

Be watching your fields for UFC interns collecting data for your farming operation. I encourage you to greet them and look forward to the valuable reports their work will provide. ●

A

A

UFC agronomy staffer shows interns how to stage a corn plant.

The agronomy department of United Farmers Cooperative is involved in several projects intended to build our ability to serve you as your planting equipment gets larger and faster.

We’re excited about our upcoming class of interns. We have a great deal of potential this summer to develop the minds of these stu-dents as well as to produce value for our customers.

UFC Farm Supply BurnsvilleCustomer – Jeff Lilja, Operations

Manager, The Brickman Group, Minnesota Branch

Business – A national landscape com-pany attending to the maintenance of commercial buildings, townhome and apartment complexes, and shopping centers.

Exmark Mower Customer – 10 years

ith a degree in landscape contracting from Penn State, Jeff Lilja oversees daily operations of sev-

eral landscape maintenance crews as they serve Brickman’s clients in the Twin Cities, including United Health, Medtronic, Kimco Realty, and Duke Realty. Jeff depends on UFC Farm Supply’s Burnsville location, an autho-rized dealer and service provider of Exmark commercial grade mowers, to get the job done.

There are 23 Exmark mowers in Brickman’s fleet, and UFC Farm Supply provides the service and parts for all of them. “[UFC Farm Supply] knows what is going on and does an awesome job keeping me informed and my equip-ment in good working order,” says Jeff. He relies on the Burnsville location to service all of his mowers, in addition to the trimmers, backpack blowers, and

any other hand held Echo equipment his crews operate. According to Jeff, the Burnsville location employees do a great job keeping him informed of war-ranty issues. “They have all my records on file and they are looking out for Brickman’s interests,” he states.

This past spring, the employees at the Burnsville location spent a day working with the Brickman Group show-ing their crews different service tips, along with daily and weekly preventa-tive maintenance. Andy Breeggemann, the Burnsville Store Lead, works with Jeff on a regular basis. “Taking time to show Jeff and his crews some things they can do to keep their equipment in good running order is just a small way for us to say thanks”, Andy said. “Jeff and everyone at the Brickman group is great to work with and I truly enjoy their business,” Andy adds.

Jeff concludes, “I don’t have to, but I can’t speak well enough of how they take care of things.” ●

20 www.ufcmn.com - EXTRAORDINARY VALUE IN OUTDOORS

UFC Farm Supply Customer Spotlight

UFC Farm Supply WaconiaCustomer – Scott Richter, Manager of

Riverside Terrace Mobile Home ParkBusiness – Residential Property

Management at Watertown, Minn.Garden Center Customer – 20 years

ach year, Scott Richter and Marie Wall plant a ribbon of flowers along the entryway to Riverside Terrace, a residential property,

turning it into a blaze of color. For Scott, gardening isn’t just part of his job – it has been a passion of his for 20+ years, and UFC Farm Supply has supported him along the way.

Raised on a farm, Scott made many trips with his dad to UFC Farm Supply (formally known as Waconia Farm Supply) as he was growing up. He has seen the business evolve into what it is today and it continues to be his one-stop shop. “I’d rather go there than give my business to others because they have always taken care of me,” he declares.

“I buy my Miracle-Gro® soil, my pots, and all my flowers from the

Garden Center,” says Scott, who selects a variety of perennials, annuals, and shrubs from the ample invento-ry. Scott doesn’t just patronize the Garden Center at UFC Farm Supply. It is also his go-to from lawn mowers and chain saws to paints and stains. “The employees are always more than willing to help and they are knowledgeable on their products – it’s just my kind of store versus the big box stores”, he added.

Garden Center manager Kathy Watson remarks, “Scott and Marie are here almost every day in the spring. They’re always smiling and always will-ing to help others out.” She continues, “It is always a joy to see them and I can not express how appreciative we are of their business. Scott is always trying new things—they’re very creative. They plant as much for the beautification of their community as they do for the business they run.” ●

Scott Richter and Marie Wall visit the Garden Center at UFC Farm Supply in Waconia almost every week during the spring.

Andy Breeggemann (left) shows Brickman’s Jeff Lilja (right) the latest technology offered by Exmark’s zero-turn mowers.

W

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Unlock every acre of your field.

InterLock® adjuvant keeps spray deposition on target.Protect your investment with InterLock® adjuvant. InterLock® adjuvant improves crop protection performance and efficiency across a broad spectrum of application conditions, so your investment stays where it belongs: in your field. To learn more, talk with your retailer or visit winfield.com

WinField is a trademark, and InterLock is a registered trademark of Winfield Solutions, LLC. © 2012 Winfield Solutions, LLC

© 2015 Cargill Incorporated. All Rights Reserved.

Nutrena Horse Feeds: Nutrition for a Lifetime.

All SafeChoice formulas are proven, controlled starch feeds that give your horse the quality nutrition it requires.

And you the peace of mind you’ve always wanted.

SafeChoice® is available at UFC Farm Supply

Consumer: Limit one coupon per customer per visit. Not valid with any other offers. Valid at any participating retailer. Not redeemable for cash. Void if transferred or copied and where taxed, restricted or prohibited by law. Retailer: We will reimburse you the face value of this coupon plus handling, provided it is redeemed in accordance with Cargill Incorporated’s coupon redemption policy, available on request. Reproduction of this coupon is expressly prohibited. (Any other use constitutes fraud.) Invoices proving purchase of sufficient stock within the past 180 days to cover coupons presented for redemption must be shown upon request. Cash value .001¢. Mail to: CMS Dep’t 22304, Cargill Animal Nutrition, 1 Fawcett Drive, Del Rio, TX 78840.

© 2015 Cargill, Incorporated. All Rights Reserved.

Manufacturer’s Coupon Expires: 05/31/2016

22 www.ufcmn.com - EXTRAORDINARY VALUE IN SALES

Our Unique Precision Ag SolutionBy Adam Garretson, UFC/Winfield Analyst

he solution, which we launched this spring, is called United Insight. It’s a fully developed preci-sion ag program which

extends from planting to harvest and is designed to maximize our producers’ profitability.

United Insight is available in two packages:1. United Insight Pro – This pack-

age includes a fertilizer solution, a planting solution, and a harvesting solution.

2. United Insight Elite – This package includes everything in Pro plus an in-season management solution.

United Insight ProThe fertilizer solution in our Pro

package involves 2.5 acre grid sampling across all the fields you want to enroll in the program. Based on the results of that soil sampling, UFC will apply fertil-izer at variable rates across those acres.

The planting solution involves tak-ing any information you can give us from past yield data and grid-sampling results and creating management zones in each field. In this process, we identify areas of each field that are identical to each other. Three to five management zones are usually created. Our planting

recommendations derive from those zones. Populations are recommended depending on your row spacing, fertil-ity, and what kinds of hybrids you are planting.

Much of the above information is collected from the UFC agronomist working with you to make sure we are placing the right hybrid on the right acre.

The harvest solution takes all the data recorded in the fertilizing and planting solutions and combines it with your yield data. Then we take your data into our larger database, and comparing it with your neighbors while maintaining anonymity, we rank your results. We’ll also look at the variables, like applying more or less nitrogen or planting different row spacing at vari-ous populations.

By looking at the effect those vari-ables might have had on your results, we give you confidence to make chang-es in your operation next year.

United Insight EliteElite includes everything in the Pro

package plus an in-season management solution. It is designed for growers who want to push for the next level of yield potential.

Elite includes in-season tissue sampling that rates various nutrients, telling you if the level of each nutrient is adequate, excessive, deficient, or responsive.

Under this program, three tissue samples are taken—at V5, V8, and tas-sel. These samples are GPS referenced so we track the same area of the field every time.

Elite also includes stalk nitrate test-ing right before harvest to make sure your nitrogen wasn’t a limiting factor at harvest.

United Insight Elite also gives you access to Winfield’s R7 tool which measures the biomass of your crop with satellite imagery. The satellite imagery can tell you which areas of your field have larger canopy and which have less. We use this infor-mation, along with the tissue sample results, to create variable-rate in-sea-son fertility recommendations.

We’re currently in mid-season grow-ing season, but we do have services designed specifically for in-season use only. You can get started right away.

Contact your local UFC district sales manager or sales agronomist for more details and pricing on United Insight Pro and Elite. ●

United Insight creates management zones within each field that differ in fertility and planting recommendations.

T

United Farmers Cooperative has provided its customers with many valuable precision farming tools as they have become available. Recently, we identified a need across our marketplace for a program that would offer all of these tools in one integrated solution.

EXTRAORDINARY VALUE IN SALES - 23

Announcing the Co-op Cash Loyalty ProgramBy Dan Braun, Sales and Marketing Analyst

f you fuel your vehicle at United Xpress c-stores with a Cenex® Cardtrol card, you may have already heard about Co-op Cash. Customers with Cardtrol cards received notice in the mail that we are replacing old technology and, in the process, issuing new cards. In

that mailing, each customer received a Co-op Cash card they can use from this point forward to purchase fuel or merchan-dise at our six United Xpress c-stores. See page 14 for a map of the UFC c-stores.

But the Co-op Cash card is more than a charge card. It’s also a loyalty card. NOTE: The letter accompanying the Co-op Cash card explains how to activate it via the website or by calling a designated number.

The use of the Co-op Cash card as a loyalty card will start this summer at United Xpress. You’ll get a surprise for signing up, and on your birthday you’ll receive a gift from one of our c-stores. Shop often and you’ll receive free items like a free

coffee with every nine coffee purchases or a free pizza with the purchase of nine pizzas.

In addition, you’ll be able to see these awards on the Co-op Cash member website: www.ufcmn.com/co-op-cash.

We’ll also offer discounts at United Xpress stores that apply to Co-op Cash members only. Just present your card, and you’ll receive the discount.

More rewards comingBeyond that, UFC’s marketing team will be working

throughout the summer to develop a rewards program for our customers in agronomy, bulk energy, feed, farm supply, and throughout the entire UFC organization. Through specialized programs to be offered this coming fall or winter, we’ll offer specific value-added opportunities for our farmer-members.

Co-op cash is a thank you for your loyal business with UFC and a reason to partner with UFC in the future.

Get your Co-op Cash card and start earning points with your purchases at United Xpress. The more you buy, the more points and awards you will earn. Then, look for more opportunities to reap membership rewards as our 2016 fiscal year dawns.

There is no cost to sign up for a Co-op Cash card. If you’ve used the Cenex Cardtrol card for your c-store pur-chases but haven’t seen the new Co-op Cash card in the mail, contact Jean Stresemann at 507-647-6605.

If you do not have a Cardtrol card but are interested in a Co-op Cash card, talk to your UFC district sales manager. ●

I

For some time, we’ve been searching for a way to thank our customers for their business, above and beyond patronage normally earned from your UFC busi-ness. This summer, we’re rolling out a rewards program called Co-op Cash that we hope will do just that—reward our customers for their loyalty.

705 East 4th StreetPO Box 461 Winthrop, MN 55396

www.ufcmn.com

PRSRT STDU.S. POSTAGE

PAID

VISTACOMM

© 2015 Cargill Incorporated. All Rights Reserved.

Loyall® Premium Pet Foods are specially formulated for your pet’s individual needs. Your pet’s nutritional needs

are influenced by a variety of factors, such as age, activity level and sensitivities. That’s why our line of premium pet foods includes several dog formulas and one cat formula.

Consumer: Limit one coupon per customer per visit. Not valid with any other offers. Valid at any participating retailer. Not redeemable for cash. Void if transferred or copied and where taxed, restricted or prohibited by law. Retailer: We will reimburse you the face value of this coupon plus handling, provided it is redeemed in accordance with Cargill Incorporated’s coupon redemption policy, available on request. Reproduction of this coupon is expressly prohibited. (Any other use constitutes fraud.) Invoices proving purchase of sufficient stock within the past 180 days to cover coupons presented for redemption must be shown upon request. Cash value .001¢. Mail to: CMS Dep’t 22304, Cargill Animal Nutrition, 1 Fawcett Drive, Del Rio, TX 78840. ONE COUPON PER CUSTOMER.

LoyallPetFood.com © 2015 Cargill, Incorporated. All Rights Reserved.

Manufacturer’s Coupon Expires: 12/31/2015

Loyall® Pet Food available at UFC Farm Supply: