June 19, 2019

Archives for March 2015

ISU Corn Growers Spring BBQ

ISU cornThis will be fun.

See you there!

 

 

 

 

 

 

 

 

 

Striking a Balance

If you’ve ever worked with a budget, you know that covering all your bases requires careful choices. Should you pay off your house, or would it be better to put that money into your retirement account?

MaxYield Cooperative’s board of directors faces similar challenges with equity management.
“It’s a balancing act,” said Howard Haas, board chairman. “We want to get more current on deferred equity, but we also have to make sure we’re adequately capitalized to meet clients’ needs today.”

The MaxYield board is committed to a balanced approach of:
1. Investing in capital equipment upgrades
2. Retiring term debt on schedule
3. Retiring some allocated equity each year

“Equity management is an annual decision, and it’s driven by your cooperative’s financial performance,” said Keith Heim, MaxYield’s CEO.

In the past seven years, MaxYield has paid $10.57 million through a combination of cash patronage on the current year’s earnings and retirement of previously issued stock. In the past five years, MaxYield has also distributed more than $8.1 million in tax deductions through the Domestic Production Activities Deduction. Equity Holders can claim these deductions on their tax forms.

MaxYield’s recent discounted equity option is another option that benefits members and gives them more choices. “The discounted equity program is another solid step for strengthening our approach of equity management to benefit our clients, both now and in the future,”
Heim said.

Clay County 4-H Membership Dues Decreased

The cost of 4-H membership was decreased recently by a contribution from MaxYield Cooperative.

The cost of 4-H membership was decreased recently by a contribution from MaxYield Cooperative.

MaxYield Cooperative presented Clay County Extension and Outreach with a contribution aimed at decreasing the cost of enrollment in 4-H youth programs.

“We are continuing our support of local 4-H and our commitment to our youth,” said Chad Meyer, MaxYield Client Relations Director. “Recently, we presented a contribution for $10.00 per 4-H member in order to decrease the cost of 4-H membership.”

Meyer said the cooperative has two goals in providing the program. “First, we want to make 4-H an affordable youth program for local families, especially families that have multiple children enrolled. Secondly, by paying a portion of each 4-H member’s enrollment fee, we are able to continue our mission in supporting 4-H so that each member benefits.”

The cooperative contributed nearly $3000 to Clay County Extension and Outreach and will contribute more than $18,000 to 4-H in seven Iowa counties annually.

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

MaxYield Cooperative is a local farmer-owned cooperative serving members and clients in northern Iowa, southern Minnesota and Riga, Michigan. Founded in 1915, MaxYield Cooperative is headquartered in West Bend, Iowa. More information about the cooperative can be found online at www.MaxYieldCooperative.com.

Discounted Equity Offers You a Choice

Keith Heim

“Discounted equity gives eligible equity holders a choice,” says Keith Heim, CEO.

The MaxYield Cooperative board of directors conducted its annual review of equity management in 2014. Directors evaluated various solutions and unanimously approved a plan to offer discounted equity.

“As part of MaxYield’s equity servicing efforts, your board is committed to getting more current on deferred equity,” said Keith Heim, CEO. “Discounted equity gives eligible equity holders a choice, since they can have some portion of their equities redeemed earlier than historically has been possible at MaxYield.”

MaxYield’s board approved up to $300,000 in cash to be paid out for the program, along with two groupings of equities. The first priority grouping included all equities from 1989-1998, which were redeemable at 75% of face value. The second grouping included the equities from 1999-2004, which were redeemable at 60% of face value.

“MaxYield offered these two options in addition to retiring some of the oldest, outstanding equity at full face value, as we’ve done in the past,” said Howard Haas, MaxYield’s board chairman, who noted that the program had a Jan. 31, 2015, deadline. “While this program won’t fit everyone, it did work for some people, and we had a great response.”

When the final requests were tabulated, the totals were as follows: the total equity balance requested from Group 1 was $370,916 with a payout of 75%, or $278,187 to be paid out in cash. The total equity balance requested from Group 2 was $192,648 with a payout of 60%, or $115,589 to be paid out in cash.

The board approved 100% of the requests and $393,776 will be returned to members.

These checks will be mailed in March with a letter describing the full balance, the amount paid in cash, and the discounted amount to claim as a loss on the 2015 tax return, if deemed appropriate by your tax preparer.

Offering new options
While discounted equity is not common in the ag cooperative system, it is often used in telephone and rural electric cooperatives. “If we want to make progress, we can’t get stuck doing things just because we’ve always done them that way,” Haas said. “We need to look at new options and be open to new ideas.”

Some people have questioned whether discounted equity indicates financial woes at MaxYield.
“If we were in financial trouble, we wouldn’t be able to revolve any equity,” Haas added. “We are strong financially and are glad we can offer more equity servicing options to our members.”

Offering the discounted equity option made a lot of sense for MaxYield, which gave equity holders a choice to opt for discounted equity or forego this option, leaving their equity intact.

“Some people wanted their older equity, some want the newer equity, and some didn’t want to do anything,” Heim said. “There are lots of different situations, and clients have lots of different needs that this program could accommodate.”

Those who chose to take the discounted equity option may be eligible to claim the deduction on their 2015 taxes. “It could be claimed as an ordinary business loss on the difference between the face value and actual cash received against your current year ordinary income,” Heim said. A tax advisor should be consulted to determine eligibility.

Discounted equity will also accelerate the rate that MaxYield is able to revolve qualified allocated equity to past and current members. “We have a goal of attaining a 10- to 12-year revolvement cycle within the next five years,” Heim said. “This will strengthen us financially and enhance our competitiveness in the industry.”

MaxYield’s board will once again review equity retirement in the fall of 2015. Chances are good they will look at discounted equity again. “I suspect this won’t be a one-hit wonder, based on the response this year,” Haas said.

THROWBACK THURSDAY: A look back at Mallard

corp_scanner@maxyieldcooperative.com_20150324_082346_003 (1024x564)Mallard joined MaxYield Cooperative, then known as West Bend Elevator Company, in 1969.

Acquired from the Federal North Iowa Grain Company, Mallard has a long history of facility upgrades and expansion.

This photo shows the steel bins and wood house elevator that sits to the south of the main location today.

The office shown in the photo was replaced with the current office/warehouse in 1987.

A bulk petroleum delivery truck, typical of the time, sits in the foreground, near the scale that was installed shortly after the transition to MaxYield.

When the two big 500,000 bushel concrete silos were built in the late 1980’s, the Mallard team nicknamed them “Ralph” and “Rosie” after two prominent Mallard citizens.

In 2005, MaxYield reached an agreement to combine the assets, personnel, and business of Mallard Agri-Center.

Expansion in Mallard continues in 2015 with Phase II of a major grain storage and handling project.

 

It’s Grow Time: 5 Steps to Produce More Grasses and Forage

Successful forage production doesn’t just happen. If you want to produce higher-quality forage and more of it, planning is the key.

“Don’t just do things the way you always have,” said Kody Trampel, a MaxYield agronomy specialist. “Raising better forage takes more management, just like it does for your corn and soybean acres. Now’s the time to start making these management decisions to boost your profit potential.”

MaxYield Cooperative is ready to help, said Trampel, who offers these five tips for success:

1. Choose the right seed. MaxYield carries everything you need for small forages, including timothy grass, brome grass, alfalfa, oats, sorghum, Sudan grass, cover crops, pasture mixes and more from leading seed companies, including Croplan®, LaCrosse Forage and Turf, and Latham® Hi-Tech Seeds. “You don’t need to drive anywhere or order your seed online,” Trampel said. Also, the Natural Resources Conservation Service (NRCS) and Department of Natural Resources (DNR) have specific seed blends that need to be used for Conservation Reserve Program (CRP) acres. “Call us ahead of time, and we can create any custom blend you want,” Trampel said.

2. Fertilize properly. Too often growers don’t fertilize alfalfa and grasses, but this is a missed opportunity. Did you know one ton of alfalfa will use 12.5 units of phosphorus and 40 units of potassium? While average alfalfa production is 3 to 4 tons per acre, it’s possible to double this if you fertilize properly and actively manage the crop, Trampel said. “With corn and soybeans, a three-to-one return on fertilizer is good, but we’ve seen growers get a five-to-one return on investment when they use foliar products or other fertilizers on their forages.” MaxYield offers
dry fertilizer and foliar fertilizers and provides custom fertilizer application on pasture and forages.

3. Control weeds and pests. If you aren’t cutting forage or spraying every 14 days, it will be tough to produce a premium product. Proper insect control and weed management will help keep your pastures healthy for higher forage production.

4. Beware of overgrazing. Grazing is good, but there can be too much of a good thing. “If your livestock overgraze, the bluegrass will take over a pasture,” said Trampel, who noted that bluegrass has less nutritional value than other grasses.

5. Rely on trusted advice. Not only does MaxYield have team members who specialize in forage, but these agronomy specialists also work with forage experts throughout the region. “We can provide the forage solutions you need,” Trampel said. “Let’s plan ahead and work together to help you manage for success.”

For more information on forages, contact Trampel (515-341- 0166) or your local MaxYield agronomy specialist today.

1933 – Farmers Industrial Union becomes Farmers Cooperative Company – Britt

britt proclamation (740x1024)Though its a bit hard to read, the board meeting notes shown here for three special meetings are significant in the history of our location in Britt.

The first special meeting was held March 7, 1933 for the purpose of discussing the proposition of changing what was then known as Farmers Industrial Union to a Cooperative Association. Directors present were Jas Kent, Jens Jensen, Ralph Whitney, Wm. Jakaubek, H.A. Schaper, Lars Johnson and W.C. Fox.

The third special meeting of stockholders was held March 28, 1933.

At that meeting, a “motion made by H.A. Schaper and second by A. Baker that we change the Farmers Industrial Union, a corporation, to the Farmers Co-Operative Company, a co-operative association under chapter 389 of the code of Iowa,” was completed.

69 affirmative votes were cast, with no one voting to the contrary, setting in motion a cooperative presences in the community of Britt.

Eighty two years later, a strong cooperative presence is still felt there. Thank you to the community of Britt, and all of the communities that make up MaxYield Cooperative, for believing in the cooperative spirit!

 

Beef Meeting

beef meetingYou are invited to join us Monday, March 23 from 11:00am-Noon for MaxYield’s Beef Feed Meeting at the Garner Pizza Ranch.

What: MaxYield Beef Feed Meeting
When: Monday, March 23rd , 2015, 11:00am
Where: Garner Pizza Ranch, Garner, IA
Who: All current or potential beef producers and family from any county are encouraged to attend.
Why: Dwight Lindley ADM Beef Specialist will briefly discuss, mineral, fly control, creep feed, wormer, and protein sources.

Please RSVP by 10:00 a.m. March 23rd to Eric Malek (515-341-1230)
Buffet Lunch Will Be Provided

Directions: The Garner Pizza Ranch is located South on Highway 18 on State St on the East Side of the road.

MaxYield awarded “Friends of Extension” award

Epsilon Sigma Phi Friend of Extension award is presented to MaxYield Cooperative. (Left to right) ESP President Andrea Nelson, ISU Extension and Outreach Regional Director Brian Whaley, Chad Meyer of MaxYield, and ISU Vice President for Extension and Outreach Cathann Kress. (Photo submitted)

Epsilon Sigma Phi Friend of Extension award is presented to MaxYield Cooperative. (Left to right) ESP President Andrea Nelson, ISU Extension and Outreach Regional Director Brian Whaley, Chad Meyer of MaxYield, and ISU Vice President for Extension and Outreach Cathann Kress.
(Photo submitted)

AMES, Iowa — The Iowa Alpha Mu Chapter of Epsilon Sigma Phi, Iowa State University Extension and Outreach’s honor society, recognized three Friends of Extension during Epsilon Sigma Phi’s annual awards ceremony March 10 at the Scheman Building on the ISU campus.

In addition, ESP also honored five ISU Extension and Outreach staff and faculty members from across the state, rewarding their service.

Epsilon Sigma Phi’s goals are to maintain high professional standards, foster professional relationships and sustain morale and prestige of the Extension Service. These individuals and groups did just that while promoting extension work in their communities and across the state as Friends of Extension.

Epsilon Sigma Phi award for MaxYield Cooperative of north-central and northwest Iowa has enabled members to achieve results jointly that they couldn’t have achieved on their own. MaxYield’s philosophy shines through with a strong partnership support for ISU Extension and Outreach programs in its area. Its commitment to providing current and emerging research-based information to its constituents and the region has been demonstrated in numerous ways.

For more than a decade, MaxYield has supported the 4-H program by providing $10 per member to counties it serves, offsetting the 4-H program development fee. It has supported all agricultural education opportunities for youth and played a major role in Extension’s farm and rural safety days. It also plays a key role in education for all members of the farming community, especially women in agriculture, by funding financial support for counties and clients to participate in the Annie’s Project classes that educate women in agriculture.

Order Diesel NOW, Get It NOW, Pay LATER

20150115_maxyield_226 (1024x650)Who has time to mess around ordering diesel fuel when it’s go time in the spring? If you order now, you can check one more thing off your to-do list and take advantage of our delayed diesel fuel payments.

This deal is going on now through March 31 for farm diesel. This is the time of year that typically gives you the best pricing. Also, payment for the farm diesel we deliver now won’t be due until April 20.

Here are a few more factors to consider:

• It’s better for your diesel fuel tanks to be full in the winter. Less condensation is a key to keeping unwanted water out of the tank.
• The delayed diesel fuel payment program lets you fill your tanks now at reasonable prices, compared to prices from recent years. Don’t wait for prices to go to zero, because they won’t.
• Delivering your farm diesel now spreads the workload for us, which helps us operate more efficiently and pass along the savings to you.

For more information on delayed diesel fuel payments, contact MaxYield’s Energy Central at 866-711-7282.