May 19, 2019

No Grain Deliveries to MaxYield Algona May 20-June 3

MaxYield Cooperative in Algona will not be taking grain deliveries May 20th through June 3rd due to elevator scale renovations and cannot take grain during this time.

They expect to resume normal grain deliveries on June 4th.

Please call 295-2741 for more details. We apologize for any inconvenience this may cause and appreciate your understanding as we improve grain receiving at Algona.

MaxYield Participates in GTRA STEM Festival

We had fun interacting with students at the STEM Festival held recently at the Graettinger Terrill Community School District.

Kristen Ruppert and Jeannie Lawrence provided our display that featured hands on sensory activities of grinding corn into corn meal from early Native Americans to modern times.

Demonstrating the many uses of corn today was a big hit with the students!

 

 

 

MaxYield Supports NC Iowa Ag in the Classroom

MaxYield Cooperative recently presented a $500 check to North Central Iowa Ag in the Classroom (NCI AITC), which is based in Garner, IA. NCI AITC educates more than 13,000 children in eight north central Iowa counties about the importance of agriculture.

Brock Beadle, a member of MaxYield’s grain solutions team, presented the contribution to Brenda Mormann, NCI AITC program coordinator.

MaxYield also presented a $500 contribution to the Palo Alto County Farm Bureau to support North Central Iowa Ag in the Classroom educational opportunities in that county.

About MaxYield Cooperative

MaxYield Cooperative is a member-owned, diversified agricultural cooperative founded in 1915 and is headquartered in West Bend, IA. The cooperative has 24 locations and three Cenex convenience stores in Iowa. MaxYield also provides grain origination and accounting services for two Iowa feed mills. For more information, visit MaxYield online at www.MaxYieldCoop.com and www.FromTheField.com.

 

Harry Bormann Retirement Coffee

Please join us for a retirement coffee honoring Harry Bormann, MaxYield’s grain team leader. After 44 years in the cooperative industry and the last 22 years at MaxYield, Harry is retiring at the end of December.

Please join us December 19th, from 2:00 – 4:00 p.m.

The event will be held at MaxYield’s Tire and Auto Service Center, located at 310 4th Ave NE in West Bend (located two blocks east of Casey’s). Refreshments will be served.

See you there!

Looking for Financing Options?

In these times of tight margins, it pays to assess all your options, especially when it comes to financing inputs for the 2019 crop.

MaxYield’s options include:

  • In-house financing. MaxYield offers delayed-price diesel, summer-fill liquid propane (LP) and terms on fall and spring inputs. Fall inputs can be picked up and applied before payment is due January 20. Spring inputs can be paid for by July 20. “If you pay early, you can also earn discounts,” Post noted. Pre-paid dollars lock in the best prices. “However, our in-house financing offers you a longer time period to pay for some of your big-ticket items,” Post said.
  • John Deere Financial. You can also access financing options through John Deere Financial, which has been a trusted partner at MaxYield for years. “Our relationships with national companies allow us to pass along low rates,” said Chad Hefel, Iowa sales manager for John Deere Financial. “Along with saving money, you can access an unsecured line of credit to help preserve your cash flow on your operating line of credit.”

You can apply for credit or request a credit increase for a John Deere Financial account through the MaxYield Seed website (www.maxyieldseed.com). Getting your application in sooner rather than later is smart, Post noted. “This provides the most flexibility in obtaining the crop inputs you need now and then pay after harvest.”

  • Rabo AgriFinance. MaxYield also has arrangements with Rabo AgriFinance, a global leader in agriculture financing. “This can be the right option for some people,” said Post, who encourages you to visit with your local MaxYield agronomist or seed team specialist to explore your options.

How does 0% financing sound?

Maybe you’re thinking, “I have enough money to make my purchases without a loan. Why should I look into financing?”

There are still some 0% financing deals out there, Post said. “These deals allow opportunities to utilize cash elsewhere. In any case, we encourage you to assess which solutions fit your business, and we look forward to working with you.”

“We provide you choices,” said Susan Post, chief financial officer for MaxYield Cooperative. “We encourage you to do the math, talk to financial professionals like your banker and tax advisor to assess cash flow needs, and determine the solution that fits your operation.”

Maintaining Trust Through Changing Times

Financing options don’t just affect your business. They also impact your cooperative.

“Times have changed,” said Susan Post, chief financial officer at MaxYield Cooperative. “Vendors are asking us for prepaid money sooner and are paying rebates back later in order to stretch the time value of money to their benefit.”

It’s Great to Be Back: Greenville Location Embraces Client-First Mindset

As the Greenville location at MaxYield Cooperative prepared for its third harvest, it hasn’t just transitioned from a seasonal location to a full-time location. Moving from a corporate business structure to a cooperative system has also redefined Greenville.

“I like MaxYield’s focus on being a solutions provider for our clients,” said Kent Engel, Greenville grain superintendent. “It’s great to be back in the cooperative system.”

Greenville plays an important role in MaxYield’s west territory. Located about 10 miles south of Spencer, MaxYield Cooperative is the biggest economic engine in this town of approximately 60-plus residents.

Greenville offers 1.5 million bushels of grain storage, including two 350,000-bushel bins and one 710,000-bushel bin that were built in recent years. Providing fast, efficient grain handling services is one of the hallmarks of Greenville.

It’s a whole different mindset than when the location was part of the corporate structure before that. “Corporate has a mission to provide maximum return to the shareholders,” Engel said. “That’s a much different philosophy than a cooperative, where the members are the owners.”

Multiple transitions created challenges

Greenville’s history in the grain business dates back generations. The business was privately-owned grain elevator for decades. In the 1970s, Greenville joined with grain facilities in Langdon and Spencer before all three were bought by Farmers Co-op in Everly, which later included Hartley, Royal and Milford.

The cooperative merged with Superior in the 2000s to become Great Lakes Cooperative. Within a few years, Green Plains bought the cooperative and its locations.

“Ethanol was coming on board around that time,” Engel said. “Management said this might be a case where if we can’t beat them, we should join them and provide corn for the ethanol plant in Superior.”

The Greenville location was part of Green Plains for about four years. “We had a lot of transition in a short amount of time,” Engel said.

More change occurred when Greenville and other locations in Green Plains were sold to The Andersons, LLC in Ohio. “The Andersons had facilities in Nebraska and wanted to fill in the gaps from Nebraska to Ohio,” said Engel, who noted that Greenville was part of The Andersons for four years before MaxYield purchased The Andersons’ locations in April 2016.

All these transitions cost the Greenville location some clients through the years. “The different changes in ownership every few years made it tough,” Engel said. “If a client leaves, you have to earn that trust back and rebuild that relationship again.”

Greenville evolves with the times

Engel believes the cooperative system offers one of the best ways to grow these relationships, since the business exists to serve the farmers. His cooperative roots run deep, back to the years he was growing up in Paullina.

“My father, Robert, managed the co-op at Paullina for more than 30 years,” said Engel, who has worked in the cooperative system since 1977. “I grew up around the elevator. To me, that was like growing up on the farm.”

Engel has seen a lot of changes in agriculture during his career, including the size of the farms. “When I was growing up, a quarter section was a pretty big farm,” he noted.

As the farms have changed, so have the grain elevators that serve them. Greenville, which used to be served by the Milwaukee railroad, used to have a single grain bin east of the office, along with three flat storage areas for grain. Grain could be shipped by rail until the tracks were removed around 1975-76.

In the 2000s, Greenville received a new 15,000-bushel-per-hour grain leg. “The old grain was so slow it was pathetic,” Engel said. “Between the new grain leg and the new bins we’ve added, it has all made a huge difference.”

Along with fast service, MaxYield offers a Keytrol fuel station at Greenville. Members of the local coffee crowd stop by the office each morning for hot coffee and fresh popcorn. Some drop by again in the afternoon.

Even the coffee crowd has changed through the years in Greenville. “It used to be a card playing group who exchanged small amounts of money,” said Engel, who noted that the crowd was biggest in the winter. “There might be 12 to 14 people in here, which made it tough to do business, since you had no privacy.”

There used to be quite a few smokers among the coffee crowd. “In the dead of the winter, you’d have to open the windows to try to clear the smoke out of the office,” Engel said.

All that changed in 2008, when Iowa lawmakers passed the Smokefree Air Act, which prohibits smoking in enclosed areas within places of employment. “That was kind of hard on the coffee crowd,” said Engel, who enjoys visiting with the regulars who continue to stop by the Greenville office.

Engel appreciates the chance to serve local farmers. “Our clients are forward thinkers who adapt to change and are willing to try new things. They are good people to be working for.”

 

 

 

MaxYield Cooperative Announces Fiscal 2018 Results

WEST BEND, IA, – MaxYield Cooperative® recently announced its fiscal results, for the year ending July 31, 2018. The board of directors for MaxYield reviewed and approved the financial audit at their board meeting, held August 23.

“The recently completed year-end showed solid earnings and financial results in a continued challenging agricultural environment,” stated MaxYield CEO Keith Heim. “We had a strong fall 2017 season and even with a very difficult spring, in which some crop inputs and nutrients were simply not applied, seed, crop nutrient and crop protection margins in total were higher than the previous fiscal year.”

Heim added that other noteworthy accomplishments included strong grain drying revenues, increased propane gallons, solid energy margins, plus increased transportation, SciMax Solutions and feed revenues. “Our emphasis on expense control, plus improved grain margins in 2018 also helped us achieve strong fiscal results,” he added.

MaxYield Cooperative’s Local Savings from Operations for the 2017-2018 fiscal year were $1,593,687, and pre-tax Total Savings for the cooperative totaled nearly $4.9 million.

Heim noted that the cooperative continues to build its balance sheet. “This is arguably the strongest balance sheet in our cooperative’s history. Term debt was reduced by $4.4 million, member’s equity increased and we added $3.0 million to working capital in 2018. MaxYield also increased retained savings, which now totals nearly $52 million. In 1997, retained savings were ($122,242), so you can see we continue to make significant progress in strengthening the financial position of MaxYield. We have been and will continue to focus on enhancing revenue and decreasing expenses in this tight economic environment,” he added.

The cooperative’s annual meeting is December 10, 2018 at 10:00 a.m. at the Britt Community Center, located in Britt, IA.

About MaxYield Cooperative

MaxYield Cooperative is a member-owned, diversified agricultural cooperative founded in 1915 and is headquartered in West Bend, IA. The cooperative has 24 locations and three Cenex convenience stores in Iowa. MaxYield also provides grain origination and accounting services for two Iowa feed mills. For more information, visit MaxYield online at www.MaxYieldCoop.com and www.FromTheField.com.

Ben Buie Named MaxYield Grain Team Leader

Ben Buie has been named to the position of Grain Team Leader for MaxYield Cooperative. The appointment was announced August 10 by Keith Heim, CEO for MaxYield Cooperative and will be effective December 31, 2018.

Buie will assume the position currently held by Harry Bormann, who recently announced his intention to retire from the company in December. Bormann has been with the cooperative since 1996.

Buie will be responsible for providing leadership and strategic direction for MaxYield’s grain department and team. He will also be responsible for grain merchandising, risk management, procurement, grain inventory, plus the education and development of the grain team.

Bormann and Buie will work together over the next several months to ensure a smooth transition of responsibilities. Buie will begin his duties at MaxYield mid-September, 2018.

“Ben comes to MaxYield with considerable experience in grain origination and merchandising numerous commodities, including corn and soybeans, across a diverse geographical area,” said Heim. “He also brings to MaxYield experience in grain operations and has provided leadership in a variety of grain facility upgrade projects throughout his career.”

Prior to joining MaxYield, Buie served as Grain Division Manager for ECI Cooperative, based in Cedar Falls, IA. His extensive grain industry career has included positions with J. D. Heiskell & Co. in Amarillo, TX, and Garvey Processing, Inc. in Portales, NM and St. Charles, IL.

He earned his Economics degree at the University of Illinois and his Masters of Business Administration at Eastern New Mexico University.

About MaxYield

MaxYield Cooperative is a member-owned, diversified agricultural cooperative founded in 1915 and is headquartered in West Bend, IA. The cooperative has 24 locations and 3 Cenex convenience stores in Iowa. MaxYield also provides grain origination and accounting services for two Iowa feed mills. For more information, visit MaxYield online at www.MaxYieldCoop.com and www.FromTheField.com.

A Floor and Maybe More: Protect Profit Potential with Minimum Price Contracts

In times like this, wouldn’t it be great to have price protection against the downside of weather markets and still be able to capture upside potential? It’s not only possible, but also quite simple with a minimum price contract.

“We’ve seen a lot of interest in minimum price contracts,” said Karl Setzer, risk management team leader for MaxYield Cooperative. “The potential for this contract to work is much greater when the market isn’t near seasonal or historical highs.” A minimum price contract involves a simple, two-step process, including:

  1. Cash sale
  2. Re-ownership of the grain in the deferred months, with a set price floor

While some risk management tools still have downside risk, that’s not the case with the minimum price contract. Along with price protection, you retain the opportunity to take advantage of market rallies.

For example, on minimum price contract bushels that MaxYield was pricing in mid-October, the market was trading at $3.88 for September 2018. “Since we put the re-ownership out into future months, rather than the spot market, you have the chance to participate in a weather market in the next growing season,” Setzer said.

Think of it like insurance

Think of a minimum price contract like car insurance and homeowners insurance. When you buy these risk management tools, you hope that you never have to collect on them. If you do suffer a loss, however, the premium seems like a small price to pay for the coverage.

This is similar to a minimum price contract, which offers you a more affordable way to retain ownership, protect against losses, capture future weather rallies and avoid grain storage costs.

“Storage could easily cost you twice as much as the fee for the minimum price contract,” Setzer said. “This contract almost sounds too good to be true, but it’s the real deal.”

After you pay the fee for this contract, there are no hidden costs or additional fees. “It’s not like buying a car and having to pay more money for rust protection,” Setzer said. “With a minimum price contract, everything is spelled out right up front.”

In addition, you only have to handle the grain once with a minimum price contract. Don’t want to mess with hauling grain to the elevator? Sign up for MaxYield’s convenient, on-farm grain pickup service and check one more thing off your to-do list.

Effective risk management doesn’t have to be fancy

Along with minimum price contracts, MaxYield offers a variety of risk management programs and tailors them to your specific situation.

“We don’t believe in one-size-fits-all, cookie cutter solutions, but we do believe effective risk management doesn’t have to be complex,” said Setzer, who added that no MaxYield grain team members work on commission. “Think of risk management like an old farm truck. It doesn’t have to be fancy to work for you.”

Don’t overlook one of the biggest benefits of the K.I.S.S. (keep it simple, stupid) philosophy of risk management, Setzer said. “The simpler your system is, the more likely you are to follow it.”

Let’s talk

Want to learn more about minimum price contracts or other risk management tools from MaxYield? Interested in on-farm grain pickup? Contact your nearest MaxYield location for details.

Developing Strategies & Utilizing Tools: Building a Crop Marketing Plan

Download: Building a Crop Marketing Plan Flyer

There’s an old adage that states, “failing to plan is planning to fail.” Do you plan to fail in marketing your old and new crop corn and soybeans? If the answer is “no” then what is your plan? Could you write it down and share it with your business partner and primary ag lender?

Join Steve Johnson, farm management specialist for an evening of fun and educational learning filled with strategies and tools to prepare you to market old and new crop bushels.

February 21, 2018

6 p.m. Meal
7:00 p.m.- 9:00 p.m. Steve Johnson

The Shores
14 N. Lawler St.
Emmetsburg, IA

Cost is $30 per person or $45 per couple

To register, call 712-852-2865 or angies@iatate.edu