Yields on corn and soybeans to date have been impressive, which could mean the percentage of your crop that is marketed is less than originally planned. This is really a good thing! Even with lower prices, your revenue per acre will increase. With that being the case, in most instances you are now faced with decisions on how to market the additional bushels. Here are a few ideas in no particular order that you may want to consider.

A standard cash sale. Here, you price the commodity and avoid storage costs. A cash sale on corn more than 15 percent in moisture saves you additional drying costs and shrink as those factors are taken down to 15 percent versus 14 percent if it is placed under price later.

Basis contracts. You fix the basis now and price the futures side of the contract at a later date. Basis contracts allow you to generate cash flow if needed because you can get an advance on the money. Shrink and drying on corn, if over 15 percent moisture, is calculated down to only 15 percent also.

Guaranteed minimum price contracts (GMP). Similar to a cash sale except this contract involves the purchase of a call option, which allows you to capture a gain on your sale should the market rally. Every marketing year can be different and if you select a GMP contract as part of your marketing plan, it is important to determine how long you want to retain ownership to monitor market performance. The longer the ownership, the higher the option cost.

Futures-only contracts. Often called hedge-to-arrive contracts, these let you set the futures price now and establish a basis at a later date with the thought being that the basis will improve once harvest is over and the crop is put away and also the futures market will develop a carry. This works best if you have you have on-farm storage to avoid paying commercial storage charges.

Structured Commodity Solutions (SCS) contracts. There are several different SCS contracts available depending on your feel for the market. They basically allow you to average the price of sales over time and can be structured at no cost. If this is a contract that you would like to try, set up a time to talk to our grain originators one on one and go over the mechanics of these contracts in detail.

Joe Hennen Assistant Grain Department Manager

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

SHAREThe

Multiplying the Power of Our Owners FALL 2016

MARKET REPORT

A GREAT YIELD MEANS MORE OPTIONS

Where do we start to start to explain where these great corn and soybean yields are coming from?

Soybeans are coming in bigWhile I believe this year’s success started with the right soybean seed, treating the seed in the proper amounts with fungicide and insecticide helped prevent soil diseases and early-season insect issues. Those who did it right are reaping the benefits!

Here are a few early insights for the young harvest:

• We are hearing a 10 bu/A yield increase for those using Clariva™ seed treatment that contains a fungicide and insecticide, plus a soybean cyst insecticide.

• Soybean cysts seem to be increasing in number.

• Each year we are starting to fertilize soybeans as a crop to increase our yields.

And of course, Mother Nature had an impact. August rains really filled the top 10 inches of the soybean plants out with a lot of pods with big beans.

Weed control program is vital as alwaysWeed pressure can rob your yield more than you think. However, a good pre-emergence program followed by an early post-emergence program controls the broadweeds at their proper heights. Waiting to spray weeds at a late date limits control of these weeds, and you could damage your soybeans by burning off the early flowers, which limits yields.

Spraying a fungicide on soybeans at the R1 to R3 stage controls the pressure of leaf diseases and helps with environment stress. BASF has a program where you spray Priaxor at 2½ ounces

twice, and it appears to work. The fields are not all harvested yet, but early reports are that this program paid off very well this year in yield.

Corn harvest looks good, tooJust as with soybeans, we planted the right variety in the right year. But there were other factors in our success:

• Fertilizer for 200 bushels

• Having an excellent crop protection weed control program

• Top-dressing additional nitrogen at the V4 to V7 stage of the corn

• And finally, Mother Nature chimed in with more than enough rain to help finish off the yield, and this was after good growing weather.

Get your fertilizer nowFertilizer is at its lowest levels in a very long time. This fall would be an excellent time to get your fertilizer down in the field. There’s less compaction and no waiting time compared to spring. Another good reason is that phosphate, potash, sulfur and zinc are increasing in price for spring needs

YIELDS ARE GREAT. BUT WHY? Gerry Kodet

Agronomy Department Manager

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ON THE GROUND

BASF Program 1. Post shot of weed control, plus Priaxor at 2 ½ (first-time application)2. Spray at R1 to R3 stage (for aphid control plus second application

of Priaxor)

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The rain event doesn’t seem to be on our side at the present time, but I couldn’t find my woolly friend to help me with the forecast.

But!

The last half of October will lean more to our side with fewer and fewer rain events. The temps will still be more on the mild side.

November will come in very nice, and that weather will remain with us until the weekend before Thanksgiving.

So with a forecast like this, let’s be extra safe and get the excellent crop out and do all of the fall tillage. Also remember your family and take those safety breaks.

See you in the spring!

-The Bohemian

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YOUR SHARE

On September 15, we sent a letter to all of our members indicating that CCFE has entered into a unification study with Harvest Land Cooperative. Since that time, a number of questions have come forward. Some of those questions include, What will be the equity retirement policy? Where will the main office be? What will be the name of the company? What will happen to the employees? Who will be the CEO? Who will be the department managers? Is either company in financial difficulty? The unification study will address all of these questions as well as many other items. The two answers I can offer now are:

1. Employees – This unification study is not about reducing the number of employees. All full-time employees would be retained.

2. Financial stability – Both CCFE and HLC are financially stable and have strong balance sheets.

The reason for looking at this unification is not about building a bigger company, but building a better company. Certainly there are some inherent advantages that come with size and scale. However, as we said in the letter, unification will only be proposed if the study reveals that it is a win-win situation for all stakeholders. I can assure you that the board of directors and management of both organizations will do their due diligence in this process.

BUILDING A BETTER CO-OP

Craig Hebrink President & CEO

Continues on page 8 . . .

ADVICE FROM

AGQUEST

Sheri Bakker Crop Insurance Specialist • AgQuest

DON’T WAIT TO TURN IN A CLAIMGreetings from AgQuest Insurance! The 2016 harvest is underway with early reports of better than expected yields in both corn and soybeans. With the excessive rains we experienced this past summer, there is always the added risk of toxins in your corn. If you want to learn more, feel free to contact AgQuest Insurance with any questions.

Another important item for your crop insurance is keeping track of your production per field/section. Even if you are currently insuring as an enterprise unit (all or none for claim purposes), you want to keep individual records in the event that you choose to go back to optional unit coverage. In the event that you are filling bins, crop insurance would accept your printed yield monitor, tally marks per field with estimated bushels per truck or grain cart or scale-equipped equipment or bin markings between fields.

The RMA (Risk Management Agency) randomly reviews policies for APH Review; if your claim is more than $200,000, you will automatically have an APH Review. Please feel free to talk with AgQuest Insurance about document retention in the event a review would ever occur.

Stay in communication with your agent with any questions concerning harvest claims – don’t wait to call and turn in a claim.

With the potential challenges of harvest this year, we suggest you turn in production sooner versus later.

Harvest price for corn and soybeans will be determined in the month of October based on December corn and November soybean futures, and should be released the first week of November.

As you begin planning for the 2017 crop, keep in mind that there are additional private price products available in addition to your MPCI crop insurance. Depending on price volatility, you may want to consider protecting price risk sooner than the MPCI price, and we at AgQuest Insurance understand and can explain your choices. Please feel free to contact Sheri Bakker at 320-523-5824 about your crop insurance options.

Have a safe harvest.

For more information about any of your insurance needs, contact

Sheri Bakker sbakker@agquest.net 320-523-5824

David Link dlink@agquest.net 507-430-4330

2016 SPRING PRICES

Corn $3.86

Soybeans $8.85

Wheat $5.13 (Harvest price was set at $5.04)

NOTIFY YOUR AGENT NO LATER THAN 15 DAYS AFTER THE EARLIEST OF THE FOLLOWING:

Total destruction of the harvest of the crop

Final adjustment of the loss on the unit

Abandonment of the crop

End of insurance period or otherwise specified in the crop provisions

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A SEASON TO

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REMEMBERThe 2016 crop season will be one many growers will never forget. However, there were many events I’m sure they would like to forget. We had a late frost on the weekend of May 7 and 8 that froze off a very nice stand of corn in many areas. Luckily, our growing point was below ground and the corn slowly came back, but it still set us back. This is also why you see shorter corn plants this fall, with most plants missing those two to three leaves that froze off.

Many of the weather systems this summer came with heavy wind, heavy rains and hail, with some areas receiving hail multiple times. August turned into what some would call a monsoon, with areas of our territory receiving up to 13 inches of rain in one storm. This heavy rain caused a fair amount of crop loss in some areas.

The heavy rains, wind, hail and humidity brought us a lot of disease pressure as well. We saw an elevated level of cercospora leaf spot in the sugar beets that was hard to manage. The soybeans were hit by sudden death syndrome and white mold, and we saw Goss’s wilt, stalk rots and northern corn leaf blight and other foliar diseases in the corn.

The rains continued periodically all the way into October, keeping the ground saturated and causing a lot of harvest issues for every crop. Farmers did seem to be surprised with the crop that was out there when they could get to it, which means a few things did go right this year.

We started the year off on the right foot, with many planters rolling in mid-April, which brought excellent planting conditions. We had an excellent seed bed which led to great emergence and a great sugar beet and corn stand. After the frost in May, the weather was ideal into June, and our crops took off. We had adequate moisture and temperatures in this period; this is also when our corn was setting its yield potential around V5 with very little stress.

Also in this period, the moisture and the warm temps allowed for more mineralization of our organic matter to occur, providing us with extra nitrogen. Therefore, we saw very little yellow corn compared to past years. We also had above-average heat unit accumulation, which pushed our crop along ahead of schedule. This could be one reason the heavy rains did not affect our crop as much as we thought it would, due to the fact that it was far enough along to handle the stress.

A year like this shows what the genetics of our crops can do for us, and makes us wonder what next year has in store for us.

Ryan Keicker Crop Consultant

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DON’T LET YOUR SAFETY BE MUDDIED BY WET CONDITIONS

EVERYDAY SAFETYSafety Tips to Stay Healthy and Injury Free

Larry Arentson Safety and Compliance Manager

The 2016 harvest might be a little more challenging because of the excess rain this year. More than ever, I stress that you never forget that safety matters!

Safety during sticky situationsPlease be extremely careful when you are forced to pull big equipment out of a muddy field. The following tips will help keep you safe before and during your recovery attempt:

• Always take time to assess your situation and plan carefully.

• Consider the amount of resistance and force involved to recover the stuck equipment.

• Use the right equipment for your situation. Just because you have a tow strap or cable doesn’t mean it will safely handle the force you exert on it.

• Inspect tow hooks and straps/cables for wear and tear before you use them. Tow hooks should be free of rust, grime and any defects. Straps should be free of cuts, frays and dirt.

• Wear leather gloves when handling tow straps/cables.

• The frame is the only part of equipment that can really handle pulling the weight of another vehicle. Pulling from an axle is not recommended. Although it may seem like a sturdy part of the vehicle, it can be easily bent or ripped off.

• Always pull in as straight a line as possible. Consider some type of barrier to protect the driver in case of a broken tow cable, chain or strap.

• Keep onlookers a safe distance from an operating tow line. Much energy is stored in an operating towing strap/cable. If the strap/cable breaks, it will let go with enough force to seriously injure or kill a bystander.

Finally, if it is too difficult to do yourself, have a professional towing/recovery company assist you. Sometimes it is better to leave the tough job for the professionals.

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Drive defensively on the roadHarvest operations in the fall are intense, but the important thing to remember is you have to make it to the field first. Highways and roads are used by both your machines and the general population, so make sure you’re aware of what’s ahead of you and behind you. Crashes between automobiles and farm equipment are nearly always severe. So please watch out. Your diligence this fall could save a life.

Tractors and combines are large and heavy, making it difficult for operators to accelerate, slow down and stop. Farm vehicles make wide turns, and the large-scale equipment often crosses the center line, creating large blind spots and making it hard for operators to see approaching vehicles. To ensure safety, farmers need to move cautiously across roadways, always ensuring to check and double-check blind spots.

Driving defensively is important for all drivers, but is imperative for farm machinery operators. They should display the slow moving vehicle (SMV) emblem when driving under 30 mph, use proper vehicle lighting, and mount amber flashing lights in both the front and rear. In addition, take the extra time to check hitches, use safety chains and follow all state laws.

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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

aroundANOTHER LOVELY COUPLECraig and Makenzie Gartner were married August 27 at Gilfillan Estate in Morgan, Minnesota. Craig is one of our agronomists. He and Makenzie are making their home on a farm north of Olivia. Congratulations from all of us!

DOUBLE DIGITS FOR CPR CLASSEmployee CPR class was held September 8. Our trainer was Jack Volz from Parthenon. This is part of a series of classes that CCFE offers to employees, to better prepare them for both work-related problems and those encountered off the job. Twenty–two employees took advantage of the offering.

THE SEEDS OF SUCCESSWe held our seed plot event on Wednesday evening, September 7. Representatives from Syngenta, Stine, Bayer and BASF talked with members about new corn and soybean varieties, Credenz™ soybeans and Engenia™ herbicide for the new Roundup® Xtend soybeans.

CORRECTIONCorrection from last issue – Our apologies to Turner Padrnos who was featured as a new employee in our Summer issue. He was incorrectly identified as Tanner.

Some news from in and around the co-op.

Over the past couple of months, we have made some changes to the landscape of CCFE in the form of selling some property and consolidating operations. We sold the Olivia Agronomy Center site to Superior Transportation. As part of this sale, we consolidated our anhydrous ammonia storage to one site in

Renville. Also with this move, we now have all of our agronomy shop personnel located in one location. To accommodate this, we made some modifications to the former heated area that was used for crop protection products in Renville. One of the modifications was to install a 24’ x 16’ door on the west side of the building.

The other piece of property that we sold is the warehouse by the old fertilizer plant in Renville. This was sold to the City of Renville. We determined that this building was no longer needed and that instead of leasing out the cold storage area at the former Winfield Building in Renville, we would use that area for storing equipment.

We will continue to do our best every day to provide the service that you need in your operation. Thank you for your continued support.

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