October 22, 2020

Harvest Update and Health Precautions – September 2020

Dear MaxYield Cooperative Clients,

As we’ve seen throughout the spring and summer, agriculture remains an essential business. While many sectors and industries have shut down or reduced production during this time, farming and the business activities associated with agriculture have maintained operations and will continue to do so.

Though harvest 2020 is beginning, COVID-19 is still present in our communities. We must continue to make choices that help protect our team members, neighborhoods and you, our clients. All counties in the MaxYield trade area are experiencing a steady or increased number of positive cases. In response we are continuing with adjustments to our office procedures:

  • Team members, clients, and others should refrain from entering location offices, other than to conduct essential business (paperwork, grain samples, etc.). Meetings will be held via web conference or phone when possible.
  • If entering a location for essential business or meeting elsewhere, please maintain six feet of distance between yourself and others. This includes any on-farm visits by MaxYield team members.
  • We encourage the use of masks by team members and clients, especially when social distancing is not possible.

Though we are conducting business a little differently, we’re still working hard to provide solutions to you and your farming operation. Our grain, agronomy, feed, energy, and on-farm trucking teams are ready to work with you this fall.

We encourage clients who prefer to contact our team via phone, email or text to do so when possible and appropriate this season. You can find contact information for all MaxYield locations on our website. Connection Central is another great tool for you to view grain contracts, sales tickets, statements and more online and in real time.

I thank you for your flexibility and perseverance through the past several months. I wish you a safe and healthy harvest, and we all look forward to the day when we can put the coffee on, pop the popcorn, and welcome you into our locations with open arms once again.

 

Cooperatively,

Keith Heim
CEO

Fostoria Fire Department Receives Matching Funds Contribution from CHS, MaxYield

Fire chief Kim Kroger accepts contributions from MaxYield Cooperative and CHS that will complete their fundraising campaign to purchase new bunker gear for the Fostoria Fire Department.

MaxYield Cooperative presented the Fostoria Fire Department with a contribution of $2500, plus an additional $2500 in matching funds from the CHS Seeds for Stewardship program. Fire chief Kim Kroger accepted the contributions and the funds will be used to purchase new bunker gear for the fire department.

“After receiving grant money from other sources and with these contributions from CHS and MaxYield, we now have raised enough money that every volunteer with the fire department will now have new and updated gear,” Kroger said. “For a small fire department like ours, that is a big deal. We are really grateful for CHS and MaxYield’s support on this project.”

About CHS Seeds for Stewardship

The CHS Seeds for Stewardship is a competitive grant program that matches funds for projects that develop the next generation of ag leaders, improve ag safety and enhance rural vitality in local communities. CHS is a leading global agribusiness owned by farmers, ranchers and cooperatives across the United States. More information about CHS is available at www.chsinc.com.

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

 

Boost Your Potential: How to Earn a Bonus Premium for Old-Crop, New-Crop

Would you like a bonus on your old-crop corn or soybeans when you market your grain to MaxYield Cooperative? You have the chance to get a better price when you use a bonus premium

Ben Buie, Grain Team Leader

contract.

“Bonus premium contracts work well when you have old-crop grain to sell and you haven’t made many new-crop sales,” said Ben Buie, grain team leader at MaxYield. “If you have grain in the bin or on price-later, plus you have a good crop on the way, these contracts are worth a look.”

Bonus premium contracts can be tailored to your specific needs. “The premiums can be fairly significant,” added Mick Hoover, grain solutions and origination team leader at MaxYield. “Some have generated a premium of 37 to 38 cents on soybeans. Most of the corn premiums are 12 to 18 cents.”

 

HOW IT WORKS

You get paid a premium on today’s grain in exchange for a committed offer to sell grain in the future, if the market rises above a set price. If today’s price is around $3 per bushel on corn, for example, you could get a 15-cent premium in exchange for making an offer to sell the same number of bushels if the market goes above a target price in the specific month you set.

“The price level you set for your target will affect the premium, as well,” Buie said “The further out you go and the lower price you pick for your target, the better premium you’ll get.”

GET THE BALL ROLLING

MaxYield has been offering bonus premium contracts for about two years. While these contracts offer many benefits, there are risks. “When you’re making an offer to sell, there’s some uncertainly with this contract,” Buie said. “The further out you go, the longer you don’t know how things will shake out.”

If you have old-crop grain to sell and you haven’t sold much new-crop, however, don’t shy away from bonus premium contracts. “I don’t see a lot of downside,” Hoover said. “You need to sell new-crop, so put that offer out there. Even if the offer doesn’t hit, you still have a check in your pocket from the premium for selling the old-crop.”

Reach out to the MaxYield grain solutions team to learn more about bonus premium contracts. “Some of the contracts coming up look favorable,” Buie said. “We look forward to serving you and appreciate your business.”

 

ATTENTION, TRUCKERS!

We’re always looking to hire more trucks in the fall for our on-farm grain pickup service. If you’d like to work during the fall, we guarantee the income to the truck. Call Cassie Degner at MaxYield’s corporate office at 515-200-5115 for more details

 

 

On-Farm Grain Pickup Makes Harvest Easier

Ever feel like you don’t have enough time to get everything done? Our on-farm pick up service helps you save time, trims labor costs and reduces the wear-and-tear on your equipment.

Big or small, on-farm pickup works for all. “About 26 percent of our fall corn deliveries in 2019 were acquired by our on-farm pickup service,” said Ben Buie, grain team leader at MaxYield Cooperative.

We can tailor the trucking needs to fit any size farming operation. It’s not too early to let us know if you’d like to take advantage of on-farm grain pickup. Contact your nearest MaxYield location to sign. “The sooner you contact us, the higher likelihood of getting a truck,” Buie said.

While MaxYield gears up on-farm pickup at harvest, we also offer this service year-round. “We work hard to get everyone’s grain hauled in a timely manner and make your life easier,” Buie said.

Scale Improvements to Speed Delivery to MaxYield’s Britt Location

 

Clients and members delivering grain to our Britt location this fall will not only notice the new 750,000-bushel storage bin, they’ll also enjoy an easier time weighing in and out.

Britt location leader, Sara Anderson noted that a new scale ticket printer and intercom system are a nice addition to the improvements there. “Clients will be able to communicate directly with us in the office and the scale ticket will print automatically. You won’t have to leave the truck during deliveries. We’ve also added a signal at the end of the scale so you easily know which pit to go to.”

The goal, she said, is to make it easier for grain deliveries at Britt. “It’s easy to see the big improvements, like the new bin. However, just as important is making the client experience here better. We’re excited about everything that’s happening here.”

The MaxYield team has also been hard at work adjusting and calibrating the new Programmable Logic Controller (PLC) grain handling system, which will increase productivity, efficiency and safety at the location.

Klemme Grain Project Pushes Forward

The skyline at our Klemme facility is changing rapidly. The main grain leg tower has been constructed with conveyance added to existing grain storage. Work on the receiving pits and grain load out area is moving forward.

The bin-jacking process has begun in earnest on the 750K-bushel storage bin too. Once the bin is completed, crews will work on electrical wiring and other infrastructure for the bin.

This $4.5 million project will dramatically improve grain storage and handling at our Klemme location and is expected to be operational this fall.

MaxYield Cooperative Announces Positive Fiscal 2020 Results

WEST BEND, IA, – MaxYield Cooperative® recently announced its fiscal results, for the year ending July 31, 2020. The board of directors for MaxYield reviewed and approved the financial audit at their board meeting on August 27.

MaxYield CEO Keith Heim stated that the cooperative had positive local and total savings to report. “Each year presents challenges and opportunities and Fiscal 2020 was no different. I am especially proud of how our team performed and showed grit and resiliency during this COVID-19 pandemic. MaxYield is a solution’s provider and I appreciate the solutions our team brings to our members and clients every day.”

MaxYield Cooperative’s Local Savings from Operations for the 2019-2020 fiscal year were $1,512,243 and pre-tax Total Savings for the cooperative totaled $8.6 million.

“In Fiscal 2020, we achieved the second best total revenue in company history”, Heim said. “Most all revenue areas showed consistency with the past year and remain on upward trend lines. Some areas of note include the second best drying revenue year, solid total energy and feed margins, strong total seed margins and exceptional soybean margins.”

The MaxYield board approved using a portion of this year’s available Section 199A tax deduction internally to mitigate the cooperative’s tax obligation. Heim added that the unused Section 199A tax deduction amount of approximately $1.4 million will be passed through to members for possible use on their individual tax returns.

Heim said that the cooperative maintains a solid balance sheet. “Term debt was reduced by approximately $4.0 million. We maintained adequate working capital levels while spending approximately $13 million on capital expenditures during the fiscal year.”

Member’s equity increased by about $2.65 million in 2020, noted Heim. “MaxYield once again increased retained savings, which now totals nearly $67 million as compared to 1997, when retained savings were ($122,242). The retained savings comparison is a good perspective of the financial improvement at MaxYield over the past 23 years.”

The cooperative’s annual meeting is December 9, 2020 at 10:00 a.m. at the Ketelsen Community Center, located in Everly, IA. More details regarding the annual meeting will be sent to member’s closer to the event.

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 25 locations and three Cenex convenience stores in Iowa. MaxYield also provides grain origination and accounting services for three Iowa feed mills. For more information, visit MaxYield online at www.MaxYieldCoop.com and www.FromTheField.com.

Building the ‘Big Three’: MaxYield Upgrades Grain Facilities in Britt, Belmond, Klemme

It’s rare for MaxYield Cooperative to take on three major capital improvements in one fiscal year, but 2020 is no typical year. The time was right to invest in Britt, Belmond and Klemme to serve clients’ needs more effectively.

Work is progressing well on new grain bins at Belmond and in Britt. Both are set to be completed before harvest 2020. Each of the 105-foot-diameter bins will hold approximately 750,000 bushels

Updates in Belmond

of grain. Construction is also nearing completion in Klemme on a new 750,000-bushel bin, 4,000-bushel-per-hour grain dryer, upgraded receiving speed and other infrastructure to modernize the Klemme grain complex.

“All these projects are on track and will be done in time for fall harvest,” said Keith Heim, CEO. MaxYield’s strong financial position makes these major investments possible, he added. “Not only do we have support from clients in these areas, but we’ve continued to strengthen our balance sheet by building working capital and managing cash flow to pay for these grain improvement

projects.”

 

BRITT AND BELMOND BINS TAKE SHAPE

Good spring and summer weather allowed crews to build the bins in Britt and Belmond by June. “We’ve been really fortunate with the weather,” said Jeff Marsh, operations team leader at

Updates in Britt

MaxYield.

Adding more grain storage at Britt means MaxYield will spend less money transporting harvest grain out of Britt to other MaxYield locations. Belmond was also due for upgrades.

“We’re phasing out the old Belmond east soybean receiving facility,” said Frank Uhde, East Area team leader at MaxYield. “This will allow us to position our team members in one location in Belmond. This will make things much more efficient, and team members are excited about this.”

 

UPGRADES IN KLEMME ARE “PHENOMENAL”

Big improvements at Klemme are also generating a lot of excitement. The time is right for these upgrades, especially after a severe storm hit the area in September 2019 and damaged much of Klemme’s grain-handling equipment. This created more challenges at the facility, which had suffered fire damage in 2003 and had been repaired as much as possible.

“If you saw this facility in the last 10 years, you knew it was time for improvements at Klemme,” said Uhde. “These upgrades will be phenomenal.”

In December 2019, MaxYield’s board of directors approved a $4.5 million investment at Klemme, which includes a new 105-foot, 750,000-bushel bin; 4,000-bushel-per-hour grain dryer; upgrades to two existing grain bins for holding wet corn; overhead truck load-out capability and all the infrastructure needed to complete the project, including upgraded grain legs. While the

Updates in Klemme

revamped facility will have the same number of grain dump pits, new grain-leg equipment at the receiving pits will considerably increase receiving capacity.

The new upgrades will be huge, not only to Klemme, but for clients in surrounding areas, Uhde added. “There’s talk all the way up to the Garner area about the Klemme project. This is progress, and I’m excited to see how many new grain receipts start flowing into Klemme.”

This project will wrap up right before harvest, since there are a lot of moving parts, Uhde added. “This is a rebirth of the co-op in Klemme.”

MaxYield directors and managers are looking ahead to determine where capital improvements will be directed throughout the company in 2021. “We’re having these conversations so we can better serve clients throughout all of MaxYield’s trade territory,” Marsh said.

 

WATCH FOR IMPROVEMENTS AT WHITTEMORE

The old wooden grain elevator in Whittemore that has served farmers for decades has seen its last harvest. “This elevator is being discontinued, and we’re upgrading the west elevator so we can speed things up,” said Ron Hutchison, Whittemore location leader for MaxYield Cooperative. “Clients are happy about not having to dump grain at the wood house anymore.”

The time is right to make these changes, since the amount of grain handled at the Whittemore location has nearly doubled in recent years. “We were handling around 2 million bushels of grain a

Grain-handling improvements in Whittemore

season, but now we’re closer to 4 million bushels,” said Hutchison, who noted that much of this increased volume is connected to Whittemore Feeder’s Supply.

Among the grain-handling improvements at Whittemore are upgrades to the distributor on the west elevator from an old-style cable system to an electrical system. Upgraded spouts will be added to the bins at Whittemore, as well.

“Our goal is to make grain handling faster and safer for both corn and soybeans,” said Hutchison, who noted that Whittemore has 1.2 million bushels of grain capacity. “These are definitely good upgrades that will benefit clients in this area.”

BELMOND UPDATE: No Grain Delivery August 6-10, 2020.

BELMOND UPDATE: MaxYield’s Belmond location unable to accept grain August 6-10.

Our Belmond grain facility will be unable to accept grain Thursday, August 6 through Monday, August 10.

Due to construction, we will not have any power at the Belmond grain receiving location.

Our Belmond office will be open for normal business hours 8:00 a.m. – 4:30 p.m. during this time.

Please call our Belmond office with any questions and to confirm delivery. We appreciate your understanding!!

Klemme Grain Project Takes Shape

Progress at our Klemme location is much more visible the last several days.

The concrete foundation of the 105’ diameter 750,000-bushel bin is near completion.

Work will continue to form up the bin floor the coming days.

Among other parts of the project, also under construction is the elevator leg tower and the base for the new grain dryer.

The project is expected to be completed in time for 2020 fall harvest.

Belmond Grain Project Update

From the road, it’s hard to tell that much has changed at our Belmond grain receiving location in terms of the grain bin project that’s underway.

Over the last couple weeks, crews have continued working on the inside of the bin on grain reclaim equipment and the installation of fans on the bin.

When completed, this 750,000-bushel bin will speed up grain receiving in Belmond along with consolidating our grain operations to be more efficient for our members and clients.

The Belmond project is one of three large-scale grain construction projects undertaken by MaxYield Cooperative in 2020.