locally owned & controlled by the members it serves

VOLUME LXXXINo. 1

January 2017

STANDARDU.S. POSTAGE

PAIDRICHMOND, MO

64085

Why the empty herbicide pipeline?

.......................page 6Winter care for your cows

......page 4

By Dave Vaughan

With the coming of the new year, your staff at Ray-Carroll has been busy preparing and mailing out your 1099 forms. There are some changes this year and I thought it would be helpful to give a recap of some of the patronage changes from 2016 and how they affect your 1099’s as tax time gets near. Effec-tive 8/31/16, there are two types of patronage on the books at Ray-Car-roll: Qualified and Non-Qualified.

Qualified patronage is what your

coope r a t ive has allocat-ed and paid for decades. Qualified pa-tronage is split between a cash por-tion of 40% for 2016 and a retained eq-uity component representing the re-maining 60%. The entire amount is taxable and will be reported on your 2016 Form 1099 in Box 1.

It’s important to remem-ber that this amount is cal-culated on our fiscal year pe-riod of twelve months end-ing August 31, 2016. For the grain, services

and merchandise business you con-ducted with us for that period, this qualified patronage is allocated to you.

Non-qualified patronage was new for 2016. It’s a second patron-age pool that was authorized by your board of directors in 2015. It is also allocated on our fiscal year ending August 31, 2016. This al-location is 100% equity, with no current cash portion paid out at this time. A major difference between this non-qualified allocation and the traditional qualified amounts is that none of this non-qualified alloca-

Increase revenue coverage over and above your existing federal crop insurance coverage with an Added Revenue Price Option (ARPO) policy through RCIS. ARPO provides an additional indemnity payment in the event of a revenue loss.

Supplemental revenue protection with ARPO New revenue product options available through RCIS agents can help producers operating under tight margins by providing a higher level of revenue insurance protection with simplified revenue crop insurance products.

• ARPO was designed for simplified use and product understand-ing.

• ARPO increases revenue coverage over and above existing federal crop insurance revenue coverage.

• Works in conjunction with federal crop insurance policy and

Ray-Carroll offers revenue insurance products with RCIS

Minnick joins RC Insurance operation

IT’S 1099 TIME AGAIN

Ray-Carroll Insurance is making changes to better serve co-op mem-bers in all areas of Missouri. Ryan Minnick has joined the insurance operation, servicing all areas south of the River including Slater, May-view, and Corder, where his office is located. David Maasdam has been promoted to Insurance Manager and will continue to service customers in Sumner, Wakenda, Brunswick and Carrolton. Lacey Warren and Kent Newham will continue to work with customers in their same areas.

“We were looking to expand our business by being south of the River,” Maasdam said. “Ryan comes from a farming background with experience in farming and property casualty insurance and that made him stand out from the others we talked to. We’re happy to have him on board.”

Minnick grew up helping on his family farms in the Carrollton and Chillicothe areas. He lives in Carrollton with his wife, who is a kinder-garten teacher there, and three children; 13-year-old Bailey, 11-year-old Parker, and 5-year-old Corynn. His active children keep him busy with sports, dance, and musical arts activities. When not being a dad or at work, Minnick says he loves teaching confirmation classes to fifth and sixth graders at Immanuel Lutheran Church of Carrollton and working on the family farm.

While he worked with some farmers during his previous 16 years at State Farm Insurance in Carrollton, Minnick said he is excited to join the Ray-Carroll insurance team.

“RC insurance only has one thing that is important to them and that is the farmers,” he said. “Ray Carroll values the relationship that it has with its growers and that is the kind of insurance agent I strive to be. I love working with farmers and with my insurance background it makes a perfect fit.”

See “Insurance,” cont. on pg. 7 See “Minnick,” cont. on pg. 5

See “Taxes,” cont. on pg. 7

Ray-Carroll County Grain Growers, Inc.

Main Office807 West Main | P.O. Box 158

Richmond, MO 64085(816) 776-2291 | (800) 722-4407

Ray-Carroll Fuels LLC807 West Main | P.O. Box 410

Richmond, MO 64085(816) 776-3114 | (800) 722-4470

Ray-Carroll Brunswick

17149 Hwy 24Brunswick, MO 65236

(660) 548-3131(800) 545-1878

Ray-Carroll Carrollton

26274 Hwy 24Carrollton, MO 64633

(660) 542-2745(800) 722-4482

Ray-Carroll Corder26194 Hwy 20

Corder, MO 64021(660) 394-8888

Ray-Carroll Hardin202 E. Main

Hardin, MO 64035(660) 398-4388(800) 356-1045

Ray-Carroll Mayview110 N. RailRoad

Mayview, MO 64071(660) 237-4333(800) 932-7792

Ray-Carroll Norborne

101 S. CherryNorborne, MO 64668

(660) 593-3326(800) 248-6010

Ray-Carroll SlaterRt 2 Box 4A

Slater, MO 65349(660) 529-2676(877) 289-2676

Ray-Carroll Sumner317 Centre St.

Sumner, MO 64681(660)856-3535(800)545-1877

Ray-Carroll Wakenda30537 CR 308Carrollton, MO(660)542-2412

Ray-Carroll St. Louis4040 Duncan

St. Louis, MO 63110(314) 534-1975

Ray-Carroll News is a publication of Ray-Carroll County Grain Growers, Inc. To contribute story ideas or com-ments, contact editor Laura Williams at lwilliams1221@gmail.com.

2 JANUARY 2017 | RAY-CARROLL.COM | NEWS

Rates effective as of Jan. 31, 2017

Amount of Annual % Under Investment % Rate NY Prime

$1000 - $19,000 1.75% 2.00%

$20,000 - $39,000 2.0% 1.75%

$40,000 - $59,000 2.25% 1.50%

$60,000 - $79,000 2.50% 1.25%

$80,000 - $100,000 2.75% 1.00%

For more information, Call (800) 722-4407 and ask for Dave Vaughan.

Notice to Investors*January 2017 Interest Rates

18-month certificate(unless New York Prime Rate changes.)

Available to Missouri Residents Only.

This is investment is currently full and not taking additional investors.

FEBRUARYSTAFF

BIRTHDAYS

Christopher Rennison ......................3 Hardin

Brittany Houston ..........6Richmond

Nathan Moore ..............6Millwright

Lucinda Noelker .........................9 Hardin

Chester Fox ................10 Mayview

Sean Kaullen ..............12 Richmond

Dana Wright ...............14 Carrollton

Kenneth Clevenger ...................15 Norborne

Ben Turner .................16Norborne

David Maasdam ...................22 Carrollton

Benjamin Delaney .....24Hardin

A n o t h e r Financing Option for ProducersBy Dave Vaughan

With the 2016 crop in the bin, I’m sure our producers are well into plan-ning for the 2017 crop.

A n o t h e r service your co-operative offers to its members is the oppo r t u -nity to obtain crop input financing via the Cooperative Finance Asso-ciation (CFA).

This offering has been in place for many years and remains an option that may be a good fit for your operation. Ray-Carroll and CFA (itself a cooperative) are making special financing programs available to you for the 2017 crop year.

The most common type of fi-nancing extended is a non-revolv-ing crop input program. Non-revolving means that advances of up to the approved loan amount are only extended once. The pro-ducer may not re-borrow on the loan. The loans are typically due around February, 2018 for the 2017 crop expenses. Loan proceeds can be used for all input purchases at your cooperative. Other inputs not purchased at Ray-Carroll can also financed with this loan, although interest rates will vary for non-coop purchases.

The application process has been streamlined and is handled primarily online. See your lo-cal field marketer or call Dave Vaughan in the Richmond office if you have questions or would like to find out more about crop in-put financing with Ray-Carroll and CFA.

The USDA issued what is

their most important re-

port of the entire year

on Jan. 12. This report

wraps up the 2016 final crop pro-

duction estimates, latest update

Supply and Demand tables, Dec.

1 stocks in all positions, and last-

ly, their estimates for 2017 winter

wheat planted acreage.

On the row crops they tweaked

their numbers a bit. For US corn,

they lowered the national yield

down by .7 bushels per acre, to

174.6. This took total US produc-

tion down by 78 million bushels, to

a still record 15.148 billion bushels.

They also reduced feed demand

and increased ethanol usage to ad-

just ending stocks down 48 million

bushels to 2.355 billion bushels.

On US soybeans, they reduce

the national yield by .4 bushels per

acre, to 52.1, still a record. They

adjusted US bean production down

by 54 million bushels as a result.

Ending bean stocks were reduced

by 60 million bushels to 420 mil-

lion bushels.

For Missouri, they lowered US

estimates carried through to us

also. For Missouri corn, they re-

duced our yields down two bushels

per acre to 163, well below the

record of 186 bushels per acre in

2014. They then lowered Missouri

total corn production down 15 mil-

lion bushels to 570 million bushels,

also below the record 2014 crop of

629 million bushels.

For Missouri soybeans, they

lowered the state yield estimate by

one bushel per acre, to 49 but that

is still a record for Missouri. This

reduction did lower our final pro-

duction number on beans to 271.5

million bushels and that also is a

record.

So after all the dust has settled,

we still have both US and world

stock situations showing that we

are very adequately supplied with

john graversongrain merchandising

Report notes ample supply

Through FCC Fu-tures, Inc., you can use a full range of risk management tech-niques to protect you from today’s highly volatile grain markets.

Moderate the effects of rapidly changing pric-es and balance your way through:

Hedging transactions utilizing futures

and options

As a registered branch office for FCC Futures, Inc., Ray-Car-roll offers a full range

of marketing tools you can use to build a sound marketing strategy, mini-mizing your risk.

“The trading of derivatives such as futures and options may not be suitable for

all investors. Derivatives trading involves substantial risk of loss, and you should

fully understand those risks prior to trading.”

Contact Clint at

Ray-Carroll’s Grain

Department in Richmond

(816) 615-6030

TAKE THE

RISK?WHY

corn, beans, and wheat all around

the world. So even in the face of

any production threat that might

develop somewhere, the world has

ample stocks to buffer any short-

falls that might pop up somewhere.

Thus, the major market ana-

lyst’s continue to feel that, outside

of the usual daily market volatil-

ity, there is no reason today to

expect any kind of sustained price

rally to take corn to $4 or beans

to $11-$12 ranges. Seems like we

just need to pick days when prices

make a mini rally to continue to

market when the markets allow.

We continue to field some calls

occasionally from discouraged or

disgruntled farmers who are up-

3 MARKET NEWS | RAY-CARROLL.COM | JANUARY 2017

set that prices/bids/basis sometimes

change before they can get some

grain sold. We send out texts with

prices after the close but some-

times those values can change rap-

idly. In today’s grain world, we are

trading many different markets and

those values can and do change all

the time.

I can only tell you that when

you see prices you want to sell, in

today’s world you can’t wait. Call

us to lock in those prices or put

in offer contracts. Often times too,

our farmers can be big sellers on

rallies and on days when we buy

big volumes, you can see the bids

fall back as we progress through

the day.

...the major market analyst’s

continue to feel that, outside

of the usual daily market

volatility, there is no reason

today to expect any kind of

sustained price rally to take

corn to $4 or beans to $11-

$12 ranges. ...pick days when

prices make a mini rally to

continue to market when the

markets allow.”

4 JANUARY 2017 | RAY-CARROLL.COM | FEED &FSA UPDATES

With the winter season upon us, many cow/calf operators have started plan-ning how they will care for their cowherd through the upcoming

months of rain, sleet, snow, ice, etc. The most important issue to deal with is to provide plenty of a good, nutritious forage source. This may be standing, stockpiled forage grown this past fall. Others may be providing hay to their cowherd or even alternative roughage sources.

The key will be to balance any of these rough-age sources with the proper fortification of protein and energy so that your cows can perform to their potential for you. If you are considering a supple-mental feeding regimen for your cows this winter, Ray-Carroll has a couple of options you should closely consider:

Tubs:Ray-Carroll offers the Rangeland 25 tub from

Purina Animal Nutrition for free choice supplementa-tion of protein and energy to your cowherd. Cows will consume approximately 0.5 to 1.0 pounds/head/day of this molasses based tub. The tubs weigh 225# and come in a convenient plastic container. They are weather resistant, so they can be kept out-side. This is a cost effective method to free choice feed your cows because of the conservative intakes that cows will have. We recommend approximately 20 cows per tub in the pasture. We also recommend that you continue to keep your Purina Wind & Rain Storm cattle mineral out at all times for your cows as well, as the RangeLand 25 tub does not provide the full amount of minerals your cowherd will need.

Cubes:If you prefer to hand feed your cows, or need

to get more protein and energy into your cows to enhance body condition score (BCS) than what the RangeLand tubs will allow, then Ray-Carroll of-fers Purina 4-Square Breeder 20 cubes from Purina Animal Nutrition. This is the same nutrition that the tubs provide, but you regulate the intake on a daily basis by how much you feed your cows. The cubes are less costly per ton than the tubs, but you do have the costs associated with feeding/delivery of the feedstuffs to your cows each day. Just like with RangeLand tubs, we recommend you keep Purina Wind & Rain Storm cattle minerals out to your cows at all times, even if you are supplementing them with Purina 4-Square Breeder cubes.

Ray-Carroll has taken delivery of these products from Purina Animal Nutrition earlier this fall so that they can pass along the best pricing in the area to you on these feeding programs. Please stop in or call your nearest Ray-Carroll location to learn more about these leading feeding programs for your cow-herd this winter.

Winter care for your cows

glen watersPurina Animal Nutrition, LLC

The key will be to

balance any of these

roughage sources with

the proper fortifica-

tion of protein and en-

ergy so that your cows

can perform to their

potential for you.

Missouri has received an additional allotment of CRP acres under the Bobwhite Quail SAFE practice. Counties will begin taking offers for this practice on January 9, for a start date of Oct. 1. Producers with CRP contracts that expire on Sept. 30, along with new producers, are eligible to offer acreage into SAFE.

Additionally, the Missouri Legislature passed Senate Bill 641 which makes certain disaster pay-ments exempt from state income tax. The bill states any income received as payment from a program compensating agricultural producers from a loss due to a disaster or emergency can be subtracted from the producer’s federal adjusted gross income, as it relates to Missouri state income tax only. This provision is for all tax years beginning on or after January 1, 2014. We encourage all producers to consult their tax preparer for information on how this may impact their operation. The Ray/Clay FSA office in Richmond can assist you with your pay-ment history information.

USDA Announces Enrollment Period for Safety Net Coverage in 2017

Producers on farms with base acres under the safety net programs established by the 2014 Farm Bill, known as the Agriculture Risk Coverage (ARC) or Price Loss Coverage (PLC) programs, can begin visiting FSA county offices to sign contracts and enroll for the 2017 crop year. The enrollment pe-riod is open now and will continue until Aug. 1.

Since shares and ownership of a farm can change year-to-year, producers on the farm must enroll by signing a contract each program year.

If a farm is not enrolled during the 2017 enroll-ment period, the producers on that farm will not be eligible for financial assistance from the ARC or PLC programs for the 2017 crop should crop prices or farm revenues fall below the historical price or revenue benchmarks established by the program. Producers who made their elections in 2015 must still enroll during the 2017 enrollment period.

The ARC and PLC programs were authorized by the 2014 Farm Bill and offer a safety net to agricultural producers when there is a substantial drop in prices or revenues for covered commodities. Covered commodities include barley, corn, grain sorghum, oats, soybeans, sunflower seed and wheat. For more details regarding these programs, go to www.fsa.usda.gov/arc-plc.

For more information about these programs or to check the status of your 2017 contracts, visit the FSA office in Richmond or call 816-776-5861, ext. 2

Ray/Clay County FSA Updates

Minnick’s most important tip for his new customers is that all grow-ers need to have an annual review on their farm policy, to verify their schedule of locations, live-stock, implements and entire operation.

“When a claim happens you want to be able to say ‘I’m glad,’ instead of “I wish,” he said.

Maasdam agreed, saying that Ray-Carroll insurance agents have a better insight into what’s going on with their customer’s operations.

“We’re closer to our farm-ers, have knowledge of their inputs as well as the ups and downs of the market, and can better help them make a de-cision on what products are best suited for their farming operation,” Maasdam said. “We can help grow their business all the way around.”

For your free insurance review, contact the insurance agent in your area before the March 15 deadline.

Having just started this month, Minnick has been working to get up to speed on the coverage options available for his new customers.

“Going from a captive agent to a broker that can shop different in-surance companies is the most challenging thing about my new career,” he said. “ But I’m enjoying meeting all the people that work for RC and also seeing the large market footprint that RC has. And I’m looking forward to meeting and working with a whole new customer base that is south of the River while still maintaining the customer base I have north of the River.”

Minnick will be responsible for the sales and service of all insurance products that Ray Carroll Insurance offers, including crop insurance, farm insurance, homeowners/renters insurance, and auto insurance.

“I am also hoping that RC insurance will pick up one or two life and health insurance companies so that we may become a ‘one stop shop’ insurance agency,” he added.

Minnick brings years of experience in insurance sales to Ray-Carroll since earning his Bachelor of Science in Business Administration with an emphasis in Finance from University of Central Missouri. And he has plenty of stories to tell about the importance of having insurance.

“One of my past customers bought a brand new baler,” Minnick remembers. “He called me while he was still at the John Deere dealer and told me about it and I sent in the change request to add it to his policy. Two hours later he called and asked if it was covered yet because he was using it and after he dropped a bale he continued on down the hill until the bale he had just dropped rolled down the hill after him and smashed in the back of this brand new baler. He had a claim check in his hand later that same day.”

5

Clint Boongrain originator

After harvesting record corn and soybean crops, the US farmer is now trying to figure out how to make a profit with lower prices for next fall’s crop. With

the USDA projecting huge carryouts for corn and soybeans, the majority of market analysts don’t give the grain markets much of a chance to rally for old or new crop.

One of the nation’s most followed grain market-ing advisors is projecting a big switch from corn to soybean acres next year. He is forecasting an 800 million bushel ending carryout for the 2017 crop and $6 cash soybean prices.

This scenario seems highly unlikely with our strong export demand, but anything is possible. Just remember last year at this time soybeans were $8.50 and all the experts were saying liquidate, however three months later they were $11.

Since harvest time cash corn and soybeans have rallied 30-40 cents and 70-90 cents respectfully, this isn’t a bad return for 12 cents of storage costs. Looking forward, there is a huge amount of corn for sale at $3.50, and it may be difficult for the corn market to rally over and above storage costs.

Soybeans are always a wild card. While we have ample supplies, investment funds and Chinese buying can manipulate a market just like last spring.

As far as marketing new crop bushels, $9.50 soybeans are much more attractive than $3.40 corn.

With talk of a 4-6 million acre switch from corn to soybeans this spring, our producers have been sell-ing soybeans today and hoping to forward contract corn when the acreage reports come out at the end of March.

Carryout or Ending Stocks is the amount of grain left in the country on Sept. 1. For supplies to be considered tight and constitute stronger markets, soybeans need to be below 200 million and corn below 1 billion bushels.

Over the past several years the USDA seems to come out with huge carryout numbers in their No-vember report, but as seen below they deteriorate by the next summer. You might keep an eye on carry-out numbers as the USDA releases their supply and demand reports this year to see if the pattern contin-ues. The January report already has carryouts down to 2.355 billion corn and 420 million soybeans.

Doom and gloom outlook

MARKET NEWS | RAY-CARROLL.COM | JANUARY 2017

Ryan Minnick joined the Ray-Carroll insurance team this month, especially focusing on customers south of the River.

“Minnick,” cont. from front cover

November Report of Crop Year

Final Carryout

Corn Carryout 13/14 1887 1232

Soybean Carryout 13/14 170 92

Corn Carryout 14/15 2008 1731

Soybean Carryout 14/15 450 191

Corn Carryout 15/16 1760 1737

Soybean Carryout 15/16 465 197

Corn Carryout 16/17 2403 ???

Soybean Carryout 16/17 480 ???

6

Experts discuss why the herbicide pipeline is empty

JANUARY 2017 | RAY-CARROLL.COM | FARM NEWS

Make time for the important things, knowing you have the right crop insurance plan in place through your local RCIS* agent.

Don’t miss the March 15 deadline!Contact the following local agents in your area:

Brunswick - David Maasdam (800) 722-4482

Carrollton - David Maasdam (800) 722-4482

Corder - Ryan Minnick (660) 394-8888

Hardin - Kent Newham (800) 356-4388

Mayview - Ryan Minnick (800) 248-6010

Norborne - Lacey Warren (800) 248-6010

Richmond - Lace Warren (800) 248-6010

Slater - Ryan Minnick (877) 289-2676

Sumner - David Maasdam (800) 722-4482

Wakenda - David Maasdam (800) 722-4482

Time isRunning Out. . .

It’s been 30 years since the last new class of herbicides, HPPD inhibitors, launched, says Rex Li-ebl, herbicide global product development manager for BASF. Many of today’s “new” chemistries are really old chemistries, such as 2,4-D and dicamba, now paired with tolerant traits.

So where’s all the new chemistry? What’s up with the 30-year gap?

John Combest, communications manager with Monsanto, says it’s not for lack of trying. “We’re always looking to discover new chemistries and new classes of chemistries. That’s part of what we do,” he explains. “It’s really challenging, scientific work.”

Here are five reasons why discovering and launch-ing new herbicide chemistry is so difficult:

1. It takes time. From discovering a compound to launching a new product, companies put in 10 to 14 years of research and testing, says John McGregor, early product development manager with Bayer. And in that time, companies like Bayer comb through 100,000 substances that may or may not fit the bill for a potential new herbicide. “There are many suc-cesses and many failures,” he notes.

2. Herbicide discoveries wax and wane. During the 1980s and 1990s, new mode-of-action discoveries led to multiple new chemistries, McGregor explains. “There are only so many pathways or processes

in the plant that you can exploit,” he notes. And those pathways are already the target of existing chemistries. Today, product develop-ment teams focus on unearthing any other possible pathway that could be used to con-trol weeds. And that, McGregor notes, takes time.

3. Companies hit the brakes. When Roundup Ready launched in 1996, glyphosate-tolerant corn, soybeans and cotton flooded the marketplace, and glyphosate quickly devalued the herbicide market, Liebl notes. Crop protection companies cut back on herbicide re-search in the early 2000s. Research efforts ramped back up after “holes” in glyphosate programs became clear. Today, BASF is funding herbicide research at preboom levels, Liebl adds.

4. There are fewer players. More than 20 crop protection companies worked on new product devel-opment during the herbicide boom of the 1970s and 1980s, Liebl notes. Today, only a handful of com-panies remain. He adds that a year from now, there could be four companies if pending mergers and acquisitions go through.

“Clearly, to some degree, it’s about numbers,” Liebl explains. “When you have fewer companies in-volved, there are less opportunities to find [new active ingredients].”

5. Regulations complicate the process. The time-line isn’t longer, but the process is more complicated, Liebl notes. Regulatory agencies like the Environmen-tal Protection Agency require additional studies to address honeybees, neurotoxicity, immunotoxicity and how the new active ingredient may impact non-target species, Liebl explains. “We have to demonstrate the compound is beneficial and that it should be com-mercialized,” he says. “And we have to prove the compound is safe for humans and the environment.”

Even though the quest to discover a new pathway and a new active ingredient is time-consuming, com-plicated and expensive, crop protection companies say they are up for the challenge.

“There may be fewer targets in the plant than we originally envisioned, making it harder to find the next generation. But we’ll find them,” Liebl says. “It’s an exciting time to be involved in herbicide develop-ment.”

Source: Prairie Farmer

Scholarship packets are now available in school counselors’ offices of the schools within the Ray-Carroll County Grain Grow-ers, Inc. service area.

Each year, Ray-Carroll donates thousands of dollars to deserving high school senior young men and women as they embark on their path of continuing education. Scholar-ship recipients must be a member or child of a Ray-Carroll member and must attend a school or university in the state of Mis-souri.

All applications must be received in the Richmond Main Office by the Feb. 15 dead-line.

Winners will be announced in the May issue of Ray-Carroll News.

RC Scholarship Deadline Feb. 15

ARPO loss calculation example For this example, policyholder has APH of 200 and 85% coverage

level under federal policy (170 bu). Federal crop insurance projected price is $3.85, harvest price is $3.50 with harvested production for the unit of 140 bushels per acre. ARPO price election is $.25 per bushel resulting in an ARPO liability of $42.50 per acre (170 x $.25).

$654.50 federal crop insurance guarantee (170 bu X $3.85) – $490 federal crop insurance revenue (140 bu X $3.50) $164.50 federal crop insurance indemnity per acre

$164.50 federal crop insurance indemnity / $654.50 federal crop insurance guarantee = 25.1% loss

$42.50 ARPO liability X 25.1% = $10.67 ARPO indemnity payment per acre

The example provided above is for information purposes only. Please refer to your policy for coverage terms. Talk to a Ray-Carroll Insurance agent today to find out how to help protect your investment in this year’s crop with revenue products through RCIS.

Some products not available in all states and counties. This is intended as a general description of certain types of in-surance and services available to qualified customers provided solely for informational purposes. Coverage is underwritten in all states by Rural Community Insurance Company, Anoka, MN except in Montana where hail coverage is underwritten by Tri-County Farmers Mutual Insurance Company, Malta, MT. Rural Community Insurance Agency, Inc., D/B/A RCIS. Nothing herein should be construed as a solicitation, offer, advice, recommendation, or any other service with regard to any type of insurance product or services. Your policy is the contract that specifically and fully describes your coverage, terms and conditions. The description of the policy provisions gives a broad overview of coverages and does not revise or amend the policy. Coverage type may vary by state. Coverages and rates are subject to individual insured meeting our underwrit-ing qualifications and product availability in applicable states. Rural Community Insurance Agency, Inc., is a managing general agency representing two risk-bearing insurance companies. RCIS is an equal opportunity provider. © 2016 Rural

Community Insurance Agency, Inc. All rights reserved. 2016RC-109, Dec. 2016

7COOP NEWS | RAY-CARROLL.COM | JANUARY 2017

Visit

ray-carroll.comand click on Customer Portal in the upper right corner.

Have youvisited thePORTAL lately?

Track

all of

your

Ray-Carroll

accounts in

just one

place, plus

so much

more!

Contracts from March 1 through Nov. 30

Fixed Price Contractsand

Max Price ContractsAvailable

For information on current contract pricing, contact the Fuels Department at (800) 722-4470.

Set up fuel contracts by Feb. 15 deadline

follows federal policy’s unit structure — no additional acreage reporting or production reporting steps necessary for agents or policyholders.

• Contact your Ray-Carroll Insurance agent for details.

ARPO details • ARPO is available for corn and soybeans in Colorado, Delaware,

Illinois, Indiana, Iowa, Kansas, Kentucky, Maryland, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Da-kota and Wisconsin.

• ARPO is available for spring wheat in Minnesota, North Dakota and South Dakota.

• The ARPO price election will not increase regardless of the price fluctuation under the revenue protection policies.

• Requires a revenue loss on the federal crop insurance coverage

Important dates Sales closing deadline: applicable February 28 or March 15 federal

crop insurance sales closing date.

2017 ARPO maximum price election

Select any value in $.01 increments up to the maximum level

Corn $.40 per bushelSoybeans $1.00 per bushel

Wheat $.50 per bushel

We grow stronger every day — together

The smell of gas is a signal of possible danger! Don’t take a chance on creating

sparks by flipping a light switch on or off. Don’t use a flashlight and certainly, don’t light a

match. Shut off the gas, if you can, GET OUT of the building, and make sure everyone

else is out. Then call Ray-Carroll fuels. Don’t try to make repairs to your LP gas system

yourself. That’s a job for a specially trained LP gas serviceman. Call him. LP gas is one

of the safest energy sources. Let’s keep it that way.

Call 776-3098, 776-3114

or toll-free at 8-800-722-4470

DETECT an ODOR?

tion is taxable to you for 2016. This equity pool is anticipated by your board of directors to be re-volved in future years similar to qualified patronage. In that subse-quent year of revolvement, the year you receive the cash payout, you will receive a 1099 in that year indicating that amount is taxable at that point. Patrons receiving non-qualified allocations for 2016 were notified by a letter of allocation that accompanied your qualified patronage cash payout distributed in December of 2016. Keep this letter with your permanent tax re-cords.

Your 2016 1099 form could also include an amount of “GROSS per unit retains paid in money” in box 3. This amount represents the gross amount of grain for which you received cash in calendar 2016. Always remember that box 1 pa-tronage dividends are reported on a fiscal year period, while this per unit retains amount is on the cal-endar year basis. This amount is required by the IRS to be reported by us to you for your use in cal-culating the domestic production activities deduction (DPAD).

If you have any questions about these forms or your allocations, please do not hesitate to contact the staff at the Richmond office.

“Taxes,” cont. front cover

“Insurance,” cont. front cover

LP Protection Programs:Pre Pay Contracts: Lock your price on a set number of gallons based on your past use history. Paid up front before delivery

begins.

10 Cent Down Contracts: Lock your price on a set number of gallons based on your past history by paying a 10 cent deposit

on those gallons that you contract. Pay the balance of the contract price at the time of delivery.

Budget Level Pay Contract: Locks your contract price on your estimated gallons and divide the total cost into twelve equal

payments, billed monthly to your account.

Summer Fill Program: Fill your tanks when propane prices are usually at their lowest due to decreased demand during the sum-

mer months. Defer payment until the October 20 without finance charges being applied.

• from the impact of tight supply, low temperatures, and weather conditions

• from high price fluctuations during high demand.

Questions or to enroll: Call 1-800-722-4470 OR 1-816-776-3114

PROTECTION...

Buy bulk and SAVE!• MLPGA safety certified staff

• More than 100 years combined service

• “Satisfaction guarantee” attitude

• Best in safety, service and savings.

8 JANUARY 2017 | RAY-CARROLL.COM | FARM NEWS

Ray-Carroll InsuranceAuto, Home, Farm,

Life, Health,

Commercial, Crop,

Bonds, SR-22

March 15 ........Last day to add, change, or cancel coverage on spring crops

April 1-5 ...............Corn Initial plant date

April 20 ......... Soybean Initial plant date

April 29 ...Production reports due for all spring planted crops

May 25 ...................Corn final plant date

June 15, 20, or 25 ............Soybean final plant date. Check with your agent.

Different counties have different dates

July 1 .........................Premiums due for fall planted crops

July 15 ........ Acreage reports due for all spring planted crops

September 30 ..............Last day to add, change, or cancel coverage on wheat

August 15 ...... Premiums due for spring planted crops

October 1 .......Interest added to unpaid premiums

October 31 ....Insurance ends on wheat

November 14 .......... Production reports due for wheat

November 30 ...............Acreage reports due for wheat

December 10 ...........Insurance ends on spring planted crops

FOR MORE INFORMATION, CALL THE RAY-CARROLL INSURANCE AGENT IN

YOUR AREA:

Carrollton - David Maasdam (800) 722-4482

Brunswick - David Maasdam (800) 722-4482

Corder - Ryan Minnick (660) 394-8888

Hardin - Kent Newham (800) 356-4388

Mayview - Ryan Minnick (800) 248-6010

Norborne - Lacey Warren (800) 248-6010

Richmond - Lacey Warren (800) 248-6010

Slater - Ryan Minnick (877) 289-2676

Sumner - David Maasdam (800) 722-4482

Wakenda - David Maasdam (800) 722-4482

2017 Crop Insurance Dates

USDA Expands Microloans to Help Farmers Purchase Farmland and Improve Property

The U.S. Department of Agriculture (USDA) is offering farm ownership microloans, creating a new financing avenue for farmers to buy and improve property. These microloans are especially helpful to beginning or underserved farmers, U.S. veterans looking for a career in farming, and those who have small and mid-sized farming operations.

The microloan program, which celebrates its third anniversary this week, has been hugely successful, providing more than 16,800 low-interest loans, total-ing over $373 million to producers across the coun-try. Microloans have helped farmers and ranchers with operating costs, such as feed, fertilizer, tools, fencing, equipment, and living expenses since 2013. Seventy percent of loans have gone to new farmers.

Now, microloans will be available to also help with farm land and building purchases, and soil and water conservation improvements. FSA designed the expanded program to simplify the application process, expand eligibility requirements and expedite smaller real estate loans to help farmers strengthen their operations. Microloans provide up to $50,000 to qualified producers, and can be issued to the appli-cant directly from the USDA Farm Service Agency (FSA).

This microloan announcement is another USDA resource for America’s farmers and ranchers to uti-lize, especially as new and beginning farmers and ranchers look for the assistance they need to get started. To learn more about the FSA microloan pro-gram visit www.fsa.usda.gov/microloans, or contact your local FSA office. To find your nearest office location, please visit http://offices.usda.gov.

New irrigation app from MU Extension helps increase yields

Farmers using irrigation will benefit from a new University of Missouri Extension web application.

MU Extension agronomist Gene Stevens says producers can register for the free Crop Water Use (CWU) web app at www.cropwater.org. In several watersheds in Missouri, the application will help growers qualify for financial incentives from the Natural Resources Conservation Service by adopting weather-based irrigation scheduling.

Subscribers receive a dedicated account and web-site link they can share with farm employees who control irrigation pumps. The application can be used on both mobile devices and desktop computers.

CWU estimates crop water use based on data from MU Extension weather stations across the state. Rainfall is estimated from the National Weather Ser-vice grid based on latitude and longitude.

Crop evapotranspiration (the amount of water lost from plants and soil through evaporation) is calcu-lated from weather data and predicted crop growth stage. Required data in the setup include field lo-cation from Google Maps and factors such as soil texture, crop type, planting date, rooting depth and irrigation method.

Growth stages are predicted from crop heat units for corn, rice and cotton. Calendar days are used for soybeans. A dryness index warns when soil water deficits are near the irrigation trigger for each field. A unique feature of the application is the projec-tion of irrigation needs in each field for the coming week. This helps with spraying, cultivating and labor decisions.

For more information, go to www.cropwater.org.