It has been said that the market is a great educator, and we have certainly witnessed that fi rsthand these past couple of months! Corn and beans rallied to levels we hadn’t seen for some time and in just a few days fell back to levels that they were at before the rally started. It was a roller coaster.

Discipline is key to successful marketing. Follow your marketing plan. Make the sales when your targets are reached, regardless of the market sentiment at the time. You can almost always make a bullish or bearish case for the markets, but to defend your bottom line, you have to stay disciplined and follow the plan you have outlined. A marketing plan can be as simple or diverse as you want it to be, but outlining a path to reach your cash-fl ow needs is a must.

Scale-up SellingScale-up selling has been a good way to reach some of these goals. Seller’s remorse is a common problem with scale-up selling, however. If the market continues to go higher after selling, you’ll fi nd yourself wishing you hadn’t sold at the lower price. But if scale-up selling is your plan, you should continue to follow that pattern. Stick to your plan.

GMP ContractsGuaranteed minimum price contracts (GMP) allow you to make sales and still be in the market if prices continue to rise. They buy you time to let the market react to weather issues, drought, supply concerns, etc. while providing you a fl oor price should none of these occur. When using this type of contract, you need to make sure you give yourself enough time to let all the factors a� ecting the market play out. Sometimes GMP contracts are met with skepticism, but if the market does rally like we have seen they allow you to capture some of the “up” market.

SCS ContractsStructured commodity solution contracts are marketing tools that let you make sales by averaging prices over a period of time, pricing a certain number of bushels each week and arriving at an average price when the contract expires. This

method can be good as it establishes a fl oor price and allows for a higher selling price if the market moves higher. Ten to twenty percent of your production could be marketed this way. These contracts are becoming more popular with our producers as they o� er a wide variety of

ways to market grain.

There are several di� erent ways to market your production, and to capitalize on a rally you must give yourself the opportunity to take advantage of it. Using the di� erent marketing tools and structures that CCFE o� ers is perfect way to position yourself to do just that. Just remember that whatever contract you choose, it’ll work best if you stay disciplined and stick to your plan.

Joe HennenAssistant Grain Department Manager

2 Agronomy Report3 Bohemian Forecast4 Advice from AgQuest6 Summer Safety8 Around CCFE/Customer Appreciation Picnic

SHAREThe

Multiplying the Power of Our Owners SUMMER 2016

MARKET REPORT DISCIPLINE IS KEY

KEYS TO MARKETING SUCCESS

Stay disciplined. Follow your plan.

See John McNamara’s Advice on page 7

Well, what a spring we have had. It was like an action movie and here is the plot!

• Planting started early due to good planting conditions• Warm weather arrived…• …followed by a cold snap• Some lost stand-in corn early• Frost damage-scare occurred• Good weather arrived, perfect to fi nish the planting• There was excess moisture and severe weather in June

and July• The timing of post-applied herbicide got tough• Weeds were getting too big for one single product to

control them

Wow, and all that in nine or ten weeks! In other news, here are a few things to consider as summer rolls along.

Weed of the yearOne weed that has been showing up more frequently and really started to fl ourish this year is giant ragweed. This weed is characterized by a thick cotyledon that is oval or spatulate shaped. Its leaves are erect to branching and plants grow to 3-6 feet or more. It is capable of producing up to 60,000 seeds per plant. These seeds require a dormancy period before germination can begin and seeds can remain dormant for several years. This weed is an early germinator and grows fast so best results controlling it include a good pre-emergence herbicide followed with a timely post application. Herbicide options on this weed are limited as many are not as e� ective at controlling it especially on the pre-emergence side.

Nitrogen managementWith warm temperatures and above-normal rainfall, nitrogen management is critical this year as we head into the most rapid uptake period for corn. It takes an estimated one pound of nitrogen to produce a bushel of corn with about one third of that requirement coming at tassel stage. Recent rain events have moved some of our nitrogen deeper into the soil profi le and topdressing urea or side-dressing liquid nitrogen could pay big dividends this year.

Fungicide for plant healthAs a result of the warm temperatures, wet weather and high humidity, we need to be watching for diseases such as anthracnose, eyespot, gray leaf spot, northern corn leaf blight and northern corn leaf spot in corn. Here’s where an application of fungicide at V5 to V9 or at R1 to R3 stage will help control these problems. In soybeans we have anthracnose, bacterial blight, cercospora blight and frogeye leaf spot among others where an application of fungicide at R2 to R5 will provide control.

A LOOK AHEADA LOOK BACK,

Gerry KodetAgronomy Department Manager

2

FUNGICIDES AND HAIL DAMAGEHail damage to corn has consequences beyond the damage itself:

• The leaf/stem area available for photosynthesis is reduced

• Wounds provide an entry point for pathogens• Corn enters shock stress due to injury• Fungicide aids in recovery for several reasons:• Superior disease protection• Improves growth effi ciency (photosynthesis)• Increased ability to manage the stress associated

with hail damage.

With warm temperatures and above-normal rainfall, nitrogen management is critical this year as we head into the most rapid uptake period for corn. It takes an estimated one pound of nitrogen to produce a bushel of corn with about one third of that requirement coming at tassel stage. Recent rain events have moved some of our nitrogen deeper into the soil profi le and topdressing urea or side-dressing liquid nitrogen could

ON THE GROUND

Wouldn’t that be an easy, foolproof prediction?

Well, the stars tell me:

1. We will see some heavy rain in the last week of July.

2. In August we will have warm to hot periods, rainfall will be scattered to short supply, aphids will have a later than normal spraying in the middle of August. The conditions this year are right for white mold.

3. With the warm season we’ve been having, expect to see more crop disease and some major insect problems (such as soybean aphids and northern and western corn rootworm beetles).

I’ll always say no matter what the temperature is or if it’s raining, enjoy your summer and family. But remember: Always be safe out there.

-The Bohemian

Bohemian Weather Station. The Bohemian’s secret is out!

3

Hail damageOur area has had a fair amount of hail damage also this year. The damage from hail reduces leaf and stem area for proper photosynthesis to take place. Wounds provide entry point for disease pathogens to enter the plant. It can also send the plants into shock stress due to the injury. Fungicide applications after hail provide superior disease protection and improved growth e� ciency. This increases the plants’ ability to manage the stress associated with the hail damage.

We hope to see you at the Ridgewater College Ag Department Reunion and Alumni Kicko� . Come help launch the o� cial Ridgewater Ag Department Alumni, catch up with old classmates or participate in the silent auction fundraiser. To look at the full list of events and activities, or to register, visit www.ridgewater.edu/agreunion by August 8.

Ridgewater College Ag Department Reunion & Alumni Kickoff!Friday, August 19, 2016Willmar Conference Center

A little hot, a little cool, and a little wet. Otherwise, one nice summer!

We were more than happy to show o� the new Agronomy warehouse in Danube. Thanks to all who attended!

Out with the old… The old fert tower couldn’t stay up forever. We’re sad to see it go, but happy that it’s been replaced by the new tower at the Agronomy warehouse!

IN OTHER NEWS. . .

OUT & ABOUT

Wouldn’t that be an easy, foolproof prediction?

Well, the stars tell me:

1. We will see some heavy rain in the last week of July.

2. In August we will have warm to hot periods, rainfall will be scattered to short supply, aphids will have a later than normal spraying in the middle of August.

A little hot, a little cool, and a little wet. A little hot, a little cool, and a little wet. Otherwise, one nice summer!

ADVICE FROM

AGQUEST

Sheri Bakker Crop Insurance Specialist • AgQuest

BE SURE TO REPORT YOUR LOSSES

Now that the growing season is well underway and we have already experienced extreme weather events in the area, we want to remind you that if you have or suspect you have any crop damage, be sure to report your losses to your crop insurance agent. It is very important that an adjuster evaluates the damage and documents the loss before you do anything.

Remember that it is not too late to purchase hail coverage for 2016. If you have any questions or wish to explore hail coverage, please feel free to contact your AgQuest Insurance Agency in Olivia.

One more reminder: The acreage-report deadline for your crop insurance is July 15. After you certify at FSA, please bring your FSA 578 and maps to your crop insurance agency for accurate reporting of crop acres. Report all insurable planted acres, along with the original plant date for any replanted acres.

Give us a call if you have any questions or concerns about coverage for your crop insurance policy.

5

BE SURE TO REPORT YOUR LOSSES

THE VALUE OF WORKING CAPITAL

What is “working capital?” Do you have it or not? These are questions I answer all the time.

The simplest defi nition: It’s the sum of your current assets minus the sum of your current liabilities. Whether you have the funds in the bank to get you through the rough times, or the good times, for that matter. We are going through some agricultural uncertainties at this time. Crop prices are lower but had somewhat rebounded in the last month, giving us the extra cash needed on old crop sales. The grain markets also had given us the opportunities to use the better prices to start forward-contracting new crop sales. I hope some, if not all, have taken some of the upward markets and contacted their CCFE marketing personnel to lock in these better prices that the local and world markets have recently given to us.

Working capital also gives you di� erent choices when it comes to fi nancing. At AgQuest®, we have both loan and lease options to choose from. Most of us know how a typical loan works, what criteria is needed, and how to get funded once approved. But how many know what is involved in a lease? A lease is a contract that transfers the right to use equipment to the customer (lessee) in return for periodic rent payments to the lease company (lessor). Payments can either be expensed on your taxes or used as depreciation.

At AgQuest®, we can have a discussion on how to use a product, whether it is a loan or lease, that will help you preserve your working capital. This will help give you the best outcome for you and your farming operation.

For more information about any of your insurance needs, contact

Sheri Bakker sbakker@agquest.net 320-212-9226

David Linkdlink@agquest.net 507-430-4330

+ Lower up-front costs

+ No additional collateral beyond the item leased

+ Preserves bank lines of credit

+ Gives you a convenient source of alternative fi nancing

THE ADVANTAGES OF LEASING

David Link Business Relationship Manager • AgQuest

6

STAY COOL, STAY SAFE THIS SUMMER

EVERYDAY SAFETYSafety Tips to Stay Healthy and Injury Free

Larry ArentsonSafety and Compliance Manager

Summer is here, and so is the possibility of heat-related illness. Whether you are in a hot environment or exerting yourself doing chores and repairs on the farm, you are susceptible to your body losing its ability to regulate its temperature. Heat-related illnesses are a possibility for anyone; however, older adults, infants and young children, those with underlying chronic illnesses and those who are overweight are most at risk. To understand heat-related illnesses, we need to understand

7

our body’s reaction to heat. As the temperature rises, the body releases heat more slowly. As humidity increases, sweat evaporation decreases. When we have high humidity and high temperatures, the potential for health concerns increases.

The fi rst symptoms can be as simple as sweaty hands, dizziness and decreased mental alertness. There is also the possibility of irritability and frustration, which can lead to careless actions. Any of these factors can put you or someone you work with at risk. Heat cramps are also important signs of heat stress. Because the body is depleted of salt and moisture, your muscles may cramp or spasm in the abdomen, arms or legs.

Heat exhaustion is even more dangerous. Your heart may beat rapidly, you may have weakness or fatigue, nausea or vomiting, or fast, shallow breathing.

The worst reaction to heat is called heat stroke, and this actually can lead to death or permanent disability. Confusion, loss of coordination, hot and dry skin, headache, seizures, and coma are signs of a more serious heat stress.

If any of the signs of heat stress are evident, remove the person from the activity and get them to sit in a cool place. Get liquids into them and do not allow them to resume strenuous work for a few hours. If symptoms do not improve or worsen within the fi rst hour, seek medical attention immediately.

During a weather market like the one we’re currently experiencing, it’s extra-important to verify that your market orders are in place.

The market is changing as fast as the weather forecast changes. These orders are working during the night trade as well as the day session, so if you miss a single day, you could miss a lot.

And always remember, orders work until they fi ll or are cancelled.

YOUR ORDERS WORK 24/7 RAIN OR SHINE, SO GET THEM IN!

John McNamaraMarket Advisor

TIPS TO PREVENT HEAT STRESS

5 20 50

520

50

Increase safety precautions if the temperature rises higher than 90 degrees

Gradually build up to heavy work

Drink water every 15 minutes

Do the most strenuous work during the coolest part of the day

Wear light-colored, loose-fi tting clothing and a hat

Take regular breaks with increased frequency as the temperature rises.

7From page 1

Co-op Country Farmers ElevatorP.O. Box 604Renville, MN 56284coopcountry.com

Tel: 320-329-8377Fax: 320-329-3246T. Free: 800-962-7007chebrink@coopcountry.com

©2016 CCFE, All Rights Reserved

around

EMPLOYEE NEWS

Welcome to Jon Hamre, our new grain elevator operator, who started in April. He has been primarily stationed at the Danube downtown location but will be used throughout the system as needs arise. Jon comes with experience as a grain location superintendent in Winthrop. He has three children and resides in Sacred Heart.

Tanner Padrnos, also hired in April, is our new Agronomy Department applicator. He is recent graduate of Ridgewater College and resides in Olivia.

We’re pleased to announce that Nate Erickson has accepted a full-time position in our agronomy department. He has been working part time since spring and began his full-time duties in mid-July. Nate, who lives near Olivia, is a graduate of NDSU with a BS in general agriculture and emphasis on agriculture economics.

Dan Block has accepted a full-time position as a custom applicator. He will begin his employment the end of July. Dan and his family are currently in the process of moving back to Danube. Welcome back!

Please join us in welcoming our new employees!

THANK YOU AND BEST WISHES!

Jeremy Aeikens has resigned to accept a position with Renville County. We thank Jeremy for his service to CCFE and wish him the very best with his new career!

HONORING OUR EMPLOYEE BOARD GRADUATES

Delaney HollandThe daughter of Katy Holland will attend the University of Minnesota–Twin Cities, where she’ll major in education and global studies.

Allison PayneLynne and Chad Payne’s daughter will attend the University of Iowa, majoring in sports management and Spanish.

Anessa SeehusenAnessa, the daughter of Gary and Terri Seehusen, will attend Ridgewater College for undergrad in exercise science, with plans to then pursue a degree in physical therapy.

We wish all these “CCFE” graduates the best as they begin the steps towards their careers!

2016 CCFE/EDWARD “BUTCH” EDMAN MEMORIAL SCHOLARSHIP RECIPIENTS

CCFE awarded $3,000 in scholarships this past spring to graduating high school seniors. The CCFE/Edward “Butch” Edman Memorial Scholarship is awarded to members, employees or children of members or employees based on scholastic achievement, leadership, character, involvement and service. The award is in memory of longtime CCFE employee Edward “Butch” Edman.

$1,200 – Allison Payne Allison is the daughter of Chad and Lynne Payne of Degra� . She is a graduate of Benson High School. Allison will attend the University of Iowa, pursuing a double major in sports

management and Spanish with a minor in accounting.

$1,000 – Thomas Froland Thomas is the son of Eric and Kathy Froland of Sacred Heart. He is a graduate of RCW High School and will attend Concordia College in Moorhead, MN, majoring in social

studies, math or Spanish for secondary education with a minor in computer science.

$800 – Libby Groen Libby is the daughter of Scott and Sue Groen of Blomkest. She is a graduate of RCW High School. Libby will attend the College of St. Benedict in St. Joseph, MN, where she will

major in biology.

Congratulations to our 2016 recipients. We are proud to award this scholarship to you!

CUSTOMER APPRECIATION PICNIC

CCFE members and families are invited to our Customer Appreciation Picnic on Monday, August 1, at the CCFE Danube East Grain Location. A meal will be served from 4:30–7:00 p.m. All CCFE locations will close at 4:00 p.m. that day. We hope you can join us!