January 20, 2021

ALL Deferred Grain Checks to be mailed January 4th

Due to precautions surrounding COVID-19, ALL Deferred Grain Checks will be mailed

 

Dear Valued MaxYield Grain Clients:

For many years we’ve delivered your deferred grain checks to your nearest MaxYield location for pickup right after the New Year holiday. All checks that were not picked up were then placed in the mail.

Due to precautions surrounding COVID-19, ALL MaxYield Deferred Grain Checks will be printed and mailed on January 4, 2021.

We appreciate your understanding as we do all we can to keep you and our team safe this winter. And most of all, we appreciate your business!!

What’s the Biggest Secret to Success?

By Keith Heim, CEO, MaxYield Cooperative

Think of the last time you stopped by a MaxYield location. Did our team members greet you? Were they friendly? Were they able to answer your questions, or find the information needed to answer them?

These things may seem basic, but they build the foundation that allows your cooperative to succeed. That’s why we continue to invest in leadership and training initiatives across the company so we can serve you effectively.

Focusing on fundamentals like this is one of the biggest secrets to success in business. It also translates into solid financial returns that keeps your cooperative strong.

MaxYield has achieved consistent earnings in our past three fiscal years. I’m especially proud of how our team has performed during this COVID-19 pandemic, showing grit, resiliency and a renewed focus on the fundamentals to meet your needs.

In fiscal year 2020, we achieved the second-best total revenue in company history. MaxYield’s local savings from operations for the 2019-2020 fiscal year (which ended July 31) totaled $1,512,243. Pre-tax total savings reached $8.6 million. Nearly all revenue areas showed consistency with the prior year and continue to trend upwards. Areas of note include:

  • Our second-best drying revenue year
  • Solid total energy and feed margins
  • Strong total seed margins
  • Exceptional soybean margins

All this equates to a solid balance sheet. We also reduced term debt by approximately $4 million, maintained adequate working capital and invested approximately $13 million on capital expenditures during the fiscal year—well above what we normally invest.

In addition to routine upgrades, we’ve built one new grain bin at Belmond and one in Britt. We’ve also added a new 750,000-bushel bin and other equipment to modernize the grain complex at Klemme. These investments reflect a key business fundamental: if you’re not investing in your company, you’re going backwards.

GROWING MEMBERS’ EQUITY, RETAINED SAVINGS

All fits into MaxYield’s balanced approach to three key areas, including 1.) investing in property, plant and equipment, 2.) timely retirement of bank debt and 3.) retiring some MaxYield equity each year. We achieved this balanced approach again in fiscal year 2020.

Members’ equity and retained savings both grew in fiscal 2020. Member’s equity increased by about $2.65 million in fiscal year 2020. Retained savings now total nearly $67 million, compared to 1997 retained savings of ($122,242)—a dramatic increase in 23 years.

Completed 750,000-bu. bin in Belmond.

This shows you need to have business fundamentals in place long before hard times hit, so you can keep building your balance sheet. This allows you to focus on strategic, long-term decisions, rather than being held captive to short-term, quarterly, knee-jerk reactions.

PUTTING MONEY BACK IN YOUR POCKET

The MaxYield board has approved using a portion of this year’s available Section 199A tax deduction internally to mitigate the cooperative’s tax obligation. The unused Section 199A tax deduction amount (approximately $1.4 million) will be passed through to you, our members, for possible use on your individual tax returns. This is the same opportunity we offered in 2019.

Your MaxYield board of directors also reviews estate requests monthly. We paid approximately $128,000 to estates in fiscal year 2020.

During the board’s August 2020 meeting, the directors approved the distribution of a portion of allocated equities from 1999, totaling approximately $108,000. The board also approved making $500,000 available for a seventh discounted equity offering. The three stock groups for the discounted equity offering will remain the same as last year.

The notable change involves the percentages offered for each stock group:

  • Group 2 is raised from 65% to 80%.
  • Group 3 is raised from55% to 65%.
  • Group 4 is raised from 45% to 50%.

Stockholders will have until end of January 2021 to decide if they want to participate in this discounted equity offering. If you haven’t received a letter in the mail regarding this, contact your nearest MaxYield location.

THERE IS NO COMPROMISE ON PROVEN FUNDAMENTALS

The results of fiscal year 2020 show that although life is full of compromises, there is no compromise on proven business fundamentals. That’s why MaxYield embraces certain non-negotiables, including integrity, client focus, safety, professionalism, empowerment, accountability and teamwork.

Through our leadership training, we’ve discovered that it’s easy to assume team members know how to do something when they don’t, or they don’t realize they’re empowered to do a certain job. We want our team members to be comfortable in their roles and be good at what they do. That’s why we set expectations for our team members and then mentor them across the finish line so they can serve you effectively.

Ultimately, there are no secrets to keeping MaxYield strong. Get the fundamentals down, and the level of everything you do will rise. Thanks for being part of MaxYield’s success.

What’s Going on in Your Bins?

While it’s always important to check your bins periodically to maintain the quality of your stored grain, be extra diligent if dry conditions impacted your fields during the 2020 growing season.

“Drought-affected corn tends to have smaller kernels, meaning it’s denser,” said Ben Buie, grain team leader at MaxYield Cooperative. “That makes it harder to push air through the bin.”

Those smaller kernels can really pack down tightly, compared to larger kernels. “Think of it like a box full of balls,” Buie said. “It’s harder to push air through a box full of baseballs than a box full of basketballs.”

Coring your bins this winter will be more important than ever. “The beans we were seeing early during harvest were smaller in size,” said Buie, who added that MaxYield received about 100,000 bushels of new-crop corn by September 15. Compare that to 2019, when the first 100,000-bushel day didn’t occur until September 27.

Don’t “set it and forget it” with grain going into storage early, especially if the kernels or seeds are smaller than normal. “That’s not just grain in your bins,” Buie said. “Think of it like dollar bills. You want to protect that resource to earn the most profit you can.”

Facility Investments Pay Off at MaxYield

If you delivered grain this fall in MaxYield Cooperative’s east region, you probably noticed some big changes. We built one new 750,000-bushel grain bin at Belmond and one 750,000-bushel grain bin in Britt.

Britt

Belmond

Belmond’s bin upgrade has worked well, according to Frank Uhde, MaxYield’s east area leader. “The Belmond team received almost 600,000 bushel of soybeans at our Belmond west location. This was the first time we have used the west elevator for soybeans. Having beans on this side will allow us the ability to load a soybean train.”

Uhde was also very complimentary of the new 750,000-bushel grain bin and other facility improvements at Britt. “The new bin in Britt helped significantly decrease the amount of grain transfers during harvest and it also improved how fast we could take grain. The new PLC control system and improvements at the Britt scale have been great upgrades and has helped with both receiving and loading out grain.”

The biggest project included our $4.5 million investment at Klemme. The project included 750,000-bushel bin, a 4,000-bushel-per-hour grain dryer, wet-corn holding capacity, overhead truck load-out capability and all the infrastructure needed to complete the project.

Klemme

“Harvest hit us before Klemme’s upgrades were fully operational,” said Uhde. “We are grateful for our members and clients support this fall as we worked through a couple early challenges. Klemme has some more work to finish before being complete, but we will get it completed soon. With what we have seen this far, Klemme’s grain receiving will be a force to reckon with.

Klemme received over 151,000 bushels one of the days’ during harvest. This is almost double their best grain receiving day in the past.”

“We made these investments to handle your grain a lot faster and help you get back to the field quickly during harvest,” said Ben Buie, grain team leader at MaxYield. These much-needed improvements will benefit area farmers for generations to come.”

If you don’t farm in the east region, don’t think MaxYield has overlooked you. MaxYield’s directors and leadership teams understand the importance of continually improving facilities and equipment throughout the company.

“We’re certainly not done investing in the cooperative’s assets,” Buie said. “We plan to keep expanding and improving our facilities throughout the company to serve you more efficiently.”

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.