Duane Johnson Seeks Re-election to MKC Board of Directors

Three positions on the MKC Board of Directors will be decided by a vote of the membership at the 49th Annual Stockholders' Meeting on July 24. Incumbent, Duane Johnson is seeking re-election to District 2.



Johnson operates a diversified dry land and irrigated farm located between Lindsborg and Marquette. The main crops raised are wheat, milo, soybeans and feed for livestock. He also has a cow-calf operation. Duane previously served as chairman of the Farmers Union Elevator board at Lindsborg, and on the MKC Board of Directors from 2000 to 2009. He was re-elected to the MKC Board of Directors in 2011. Other activities have included Farm Bureau board, township board, church board and 4-H activities.  He served as secretary on MKC's board of directors in 2006 and 2007, vice-chairman in 2008 and 2009 and served on several committees.

MKC and Frontier Ag moving forward with merger discussions

The boards of directors for Frontier Ag and MKC have unanimously approved to move forward with the processes required to merge the two cooperatives. The cooperatives announced in September their plans to explore the potential of an alliance.

Board members from both cooperatives met earlier this week
to discuss the merits of a merger.

Frontier Ag President and CEO, Brad Cowan, commented the boards and management teams of both organizations spent the past sixty days completing the due diligence necessary to get to this point.

"We felt the time was right to pursue a merger," stated Cowan. "Combined we have the potential to position ourselves strategically for the future, creating tremendous opportunities for our members."

MKC President and CEO, Dave Christiansen, noted the cooperatives share a similar culture and vision, are comparable in product and service offerings, and are financially sound. "Both cooperatives focus on improving customer experience" stated Christiansen. "Together we have the potential to increase our relevance in the industry which will leverage our vendor relationships." The benefits this will deliver to our stockholders, employees, customers and communities are significant. "

Although the boards of both co-ops have endorsed the idea of a merger, each membership will be asked to approve it.

About Frontier Ag: With annual sales of $490 million, Frontier Ag, Inc. is a full-service cooperative, offering grain, feed, agronomy, energy, and transportation products and services to over 5,700 members in eleven (11) counties throughout northwest Kansas.

About MKC: With annual sales of $450 million, MKC is a full-service cooperative offering grain, feed, agronomy and energy products and services to over 6,400 members in eleven (11) counties throughout central Kansas.

  

Maintain fuel tanks for cold weather performance

Before extreme cold weather strikes, take steps to ensure problem-free engine performance and protect your valuable diesel equipment. With proper tank maintenance and fuel handling, you can avoid most common cold-weather problems.

Ice formation in fuels containing water creates severe fuel line and filter plugging problems. It’s important to regularly remove water from storage tanks, vehicle fuel tanks and filter bowls, and to follow these guidelines:

• Tilt tanks to direct water and debris away from the outlet
• Pressurize tanks to keep vapor and air inside
• Drain and remove all contaminants every three months
• Install proper filtration systems on bulk tanks
• Replace fuel filters according to manufacturer recommendations; if filters have a drain valve, periodically drain water that may accumulate from condensation
• Clean pump screens regularly
• Request periodic fuel sampling for quality assurance purposes
• Have tanks cleaned annually

Another major reason for winter problems is that tanks are not properly blended down. When blending down a tank, it's imperative that you know how much fuel is left in the tank and calculate the treat rate accordingly. If you have 700 gallons of #2 diesel remaining in the tank, and need to create a 50-50 blend of #1 and #2, ordering 700 gallons of a 50-50 blend (a common mistake) would create flow problems - because it would result in a blend of 1,050 gallons (71 percent) of #2 and 35 gallons (29 percent) of #1.

Proper use of cold flow improvers can extend the operability of fuels without the use of #1 fuel. They serve two functions: 1) changing the wax structure of diesel fuel so it can pass through filters more readily, and 2) keeping wax crystals dispersed longer when fuels are stored below the "cloud point" (temperature at which paraffin in fuel begins to form cloudy wax crystals and reduce flow).

When blending fuels, biofuels and additives, the components must all be at least 10 degrees above their cloud point – otherwise the additives will not blend in and therefore may clog filters.

Let us help you with all your winter fuel needs.

The Cooperative Advantage

By Nichole Gouldie, Communications Specialist

There are reward cards and punch cards. You may have coupons or store cash but very few

MKC Field Marketer, Jared Jones, personally
delivers patronage checks to MKC members,
Jim Schmidt and Ben Schrag.

businesses offer an incentive quite like your cooperative. MKC returns profits to its customers, the members who use its services. That is the cooperative way of doing business.

“Doing business with MKC definitely has its rewards,” said Jim Schmidt, McPherson County producer. “Not only do we get quality and personal expertise, but facilities continue to be improved or new ones are being built, and at the end of the year we see a patronage check for our business.”

MKC Chief Financial Officer, Danny Posch, said we are often asked what does a cooperative do with its net earnings. “One of the primary uses is allocating a portion back to our members based on the business they did with the cooperative during the business year,” he said.

Where Answers Grow

By Nichole Gouldie, Communications Specialist

As crop values and input costs reach new heights, so does the value of solid, trusted agronomic advice. That’s exactly what MKC and WinField Solutions can provide.

MKC kicked off the 2013 Answer Plot season on July 16 near Inman with more than 125 guests in attendance. The hands-on experience of an Answer Plot® plus the expertise of MKC field staff equals valuable insights for the producer. 

“The Answer Plot® program has been one of the most beneficial learning tools for growers,” says Kent Nichols, MKC Agronomy Field Sales Manager.  “These in-field classrooms are much more than the traditional test plot that only compares one hybrid or variety to another.  Answer Plots are about a total agronomic system.”

WinField employees were an instrumental piece of making this year’s Answer Plot® a success.  In addition to coordinating the studies that are replicated in MKC’s local plot, WinField provided information to area producers in attendance. WinField employees kicked off the learning sessions by hosting a sprayer clinic for those present. 

MKC Field Marketer, Jeremy Peterson, explains how to get
the best coverage from sprayers by making the correct tip selection
and using the correct adjuvant package.

The sprayer clinic focused on many different aspects of both operating a sprayer as well as what types of adjuvants are available for both custom applied acres and those who spray their own fields. With new herbicide technologies coming soon, presenters illustrated different spray tips which are available. Many new herbicide technologies are requiring that producers and custom applicators use certain types of spray tips. Utilizing the correct spray tips in combination with recommended adjuvant products available from MKC, growers will be able to minimize chemical drift.

The field sales team of MKC also conducted a series of educational presentations.  Growers were split into three different groups and rotated through the different sessions. The first stop on the rotation focused on recent events which have occurred throughout the MKC trade territory, including Green Snap. MKC staff demonstrated the importance of large root systems in corn as well as other positive characteristics.  Examples of plant diseases were also presented, providing growers a better understanding of what to look for in their own fields.

The second rotation explained the NutriSolutions tools that are available to producers through WinField Solutions, LLC. NutriSolutions is a systems approach to nutrient management.  The main component of the NutriSolutions program utilizes tissue sampling, a process that utilizes plant tissue from different stages of a plant’s life cycle. This allows growers to make changes to a fertility program part way through a season, if the tissue sample shows that a plant is in need of additional nutrients. Moving forward, there will be additional tools available such as digital imaging as well as technology which allows growers to know exactly how much nutrients are available from the soil within a field.

The final stop at this session illustrated the differences between WinField’s Gold and Silver management practices. These different practices utilize multiple technologies such as seed treatments, in-furrow seed treatments, in-furrow growth promoters, as well as different levels of fertility.  Nichols stressed the importance of growers understanding the yield potential of their fields and managing it accordingly. 

“MKC field marketers are well versed and professionally trained in developing management practices which incorporate many different technologies,” Nichols said. “But there’s nothing like attending an Answer Plot® Knowledge Event, which is based on the idea that seeing is believing.”

Understanding the Domestic Production Activities Deduction

By Nichole Gouldie, Communications Specialist

Through a requested IRS Private Letter Ruling (PLR), MKC has found a path to pass a significant tax deduction on to the producers who are members through the Domestic Production Activities Deduction (DPAD).

“I was very excited when MKC contacted me regarding the cooperative’s willingness to set up the Domestic Production Activities Deduction to give this great benefit to their members,” said Jim Graber, a local accountant. “Right away I saw a potential of several million dollars of tax deduction to farmers.”

DPAD, often referred to as Section 199 Deduction, is a special federal income tax provision allowing a cooperative to allocate to its members a tax deduction generated by “qualified production activities.”  As outlined by the Internal Revenue Service, and as it relates to the DPAD, grain payments the cooperative makes to its members are considered qualified production activities by the cooperative, thus making the cooperative and its members eligible for the tax deduction.

“As of the first of the year, MKC has initiated a plan to fully capture the value of the Domestic Production Activities Deduction for our members,” said CJ Blew, MKC board chairperson. “This project further enhances the value of the cooperative to its members.”

The favorable ruling will allow the partnered cooperatives within Team Marketing Alliance, Inc. to utilize a $5M deduction previously not available to the cooperatives or their members. The ruling, which will require specific process and documentation changes by TMA and the partnered cooperatives, will have a significant financial impact on their local communities and members.

“Economic value of this kind of cash savings being injected into the local economy is a real boost for the area,” Graber said.

DPAD is a tax deduction established to benefit the U.S. manufacturers and oil companies for domestic production. “Farmers are domestic producers as well. They are eligible for the tax deduction even though it is missed on many tax returns,” Graber said.

With the danger of oversimplifying what the deduction is and how it works, Graber explains it to his clients as an extra deduction that equals 9% of profit from domestic production.

Similar to patronage, this deduction will be shared by members based on the amount of grain business each member does with the cooperative. “Another benefit that separates your cooperative from other competition,” Blew said.

Once the Domestic Production Activities Deduction is calculated by each individual cooperative, the cooperative is allowed to pass through the deduction to its members. Once reported to the members on a 1099 Tax Form, the member will be allowed to utilize the deduction on their personal or corporate income tax return.

Graber has personally seen the deduction save up to $10,000 on an individual tax return. He said most farmers he sees could see a savings of $1,000 to $6,000.

According to Graber, there are no disadvantages of DPAD to the members of MKC. “It doesn’t decrease dividends, it doesn’t cost any extra in products,” he said. “It is simply a win-win situation.”

“I have found over the past 40 years as a public accountant, some of the worst tax advice comes from the coffee shops, church parking lots and family,” Graber said. “Before you dismiss this golden opportunity for a tax deduction on the coffee shop chatter, seek the advice of a competent professional. It is a great deal.”

Writer’s note: The views in this article are not intended to replace the advice of your tax professional. MKC encourages members to address questions to their tax professional or accountant.

Japanese Trade Team Tours MKC

By Nichole Gouldie, Communications Specialist

Industry representatives from Japan visited MKC at Groveland on July 26 through a trip hosted by the Sorghum Checkoff and the U.S. Grains Council (USGC). The week-long trip was an effort to emphasize the quality of sorghum produced in the U.S. and the value it can provide in Japan.

“We enjoyed the unique opportunity to host the Japan delegation to MKC,” said Nathan Eck, Groveland Location Manager for MKC. “Our visitors were very interested to see how the commodities they purchase from the U.S. work their way through the supply chain from farm gate to our cooperative to port and then on to their facilities in Japan.”

Matt Long, Grain Operations Manager at Groveland for MKC, covered Groveland’s intake of wheat, corn, sorghum and other commodities. Japan representatives also learned about the need for speed and space MKC customers are looking for and how the Groveland location fits those needs. The group also toured the warehouse and elevator facilities.

The Japanese group, consisting of five individuals involved in livestock feed production, arrived to the U.S and traveled to several different locations in Texas before making their way to Kansas. The group began in the Ft. Worth area where they met with sorghum farmers and learned how it was produced. Representatives also met with grain traders in the Texas Panhandle to learn about marketing sorghum and how sorghum is traded in the U.S. Their trip also included a feed lot tour learning about utilizing sorghum silage and flaked grain in beef production.

Their first stop in Kansas was in Wichita where they visited with animal nutritionists to learn more about the feeding value of sorghum. They also toured the Kansas Ethanol Plant in Lyons, KS, and learned about the feeding value of sorghum distillers grains. The group also had the opportunity to visit Baldwin Farms near McPherson.

Tetsuo “Tommy” Hammoto, Japan Director for the U.S. Grains Council, said this was the third

trip to Kansas for groups of Japan representatives.  “Hosting international trade teams continues to be an important effort by the USGC and the Sorghum Checkoff,” Tommy said. “The trips focus on internal marketing, allowing other countries to see the U.S. sorghum industry first-hand while making purchasing decisions.”

Japan is the third largest importer of U.S. sorghum and primarily utilizes the grain in its livestock industry. The United Sorghum Checkoff Program works to improve the profitability of the sorghum industry through research, promotion and information.

Building Momentum

By Dave Christiansen, President and CEO

It was a pleasure having more than 750 guests in attendance at our annual stockholders’ meeting last month.  Each year a theme is selected for the meeting and this time we felt “building momentum” best represented our past year.

Not only this past year, but over the course of the past several years, the board of directors and staff has focused on how to build momentum. Admittedly, there were days when we took two steps forward only to take three steps back. The challenge we faced - and will continue to - is the world and progressive producers continue to build their own momentum and at an ever-increasing rate.

Significantly contributing to building momentum at MKC is our vision and strategic objectives.  Once these elements became a part of everything we do at MKC, your cooperative began to achieve more.  We became more focused and began communicating the same message to all of our stakeholders, customers, vendors and employees.

MKC and members to benefit from Private Letter Ruling approval

This past fall, the Internal Revenue Service (IRS) approved MKC’s Private Letter Ruling (PLR) request to change the calculation of its Domestic Production Activities Deduction for upcoming years.  The ruling, while requiring certain changes to grain purchasing processes, allows MKC to significantly enhance the value of it’s Domestic Production Activities Deduction (tax deduction) for its members and the company.

Customer workshops scheduled for online business system

By Kerry Watson, Communications Specialist

A series of workshops that will assist producers in learning more about features available through MKC's and TMA's online customer systems will kick off on March 13 in Lindsborg. Craig Roebke, Trainer for MKC, will conduct the workshops. "We know we have a number of customers who are using only the basics on these systems, and we know there are some customers who just haven't tried the online system at all," states Roebke.  "Our goal is to show our customers how the online systems can save them time and help them become more efficient."

 

The workshops will cover a number of tools available on the sites. Participants will learn how to access detailed information including purchase history on products.  Participants will also learn how to sort data listed on invoices and how to schedule payments online.  “One misconception about paying bills online is that it will automatically occur each month,” stated Roebke.  “This feature actually gives customers the flexibility to schedule the payment when they want it to occur. They can use the online bill payment system one month and then not use it again for a couple of months if they choose.”

In addition, participants will learn how to use the online grain system to determine the amount of grain available for sale as well as view any open contracts. Participants will also learn how to review grain sold and capture proof of yield information including splits.  

Another great feature that saves the producer time is the offer contract system.  “Producers can go online any time of the day and make an offer for their grain,” states Roebke.  “The offer is good for 30 days and can be cancelled at any time during that time period.”  Roebke added that a trip to the bank can also be eliminated if the producer is enrolled in the direct deposit program.

The premise behind the online customer systems is to allow producers to do business online and on their time.   “If a producer fully understands how to use the online systems, he may very well no longer have to stop what he’s doing just to make a trip to the coop,” commented Roebke.

Producers should contact their MKC location for information about workshops scheduled in their area.

 

Planting seeds of opportunity

By Kerry Watson, Communications Specialist

Standing in front of an assembly of grade school students, (Goessel) USD 411 Superintendent and Principal, John Fast, slipped on a pair of worn out gloves and mentioned he was looking forward to warmer weather because he had been bitten by a bug. 

Students soon found out that it was a gardening bug, not termites or the flu bug as some had guessed, that bit Superintendent Fast and that MKC was donating $500 to help offset costs of the school’s garden program.

Kerry Watson, Communications Specialist for MKC, was on hand to make the presentation to the assembly.

“A large portion of our donations go towards programs that promote ag education, alleviate hunger, develop the leadership skills of youth and improve community safety,” stated Watson.  The school garden is a great opportunity for MKC to donate to as it ties in nicely with two components of our donation program.
 

The garden program was started two years ago when the school received a grant from the state department of education.  The school’s garden was one the first five garden projects in the state of Kansas started that year.

Fast commented that the garden has created a renewed sense of enthusiasm. “Since starting the garden, students have been very excited learning about agriculture, science, nutrition and cooperative learning,” stated Fast. “They enjoy the chance to work in the garden.”

A curriculum has been incorporated with the garden project and includes weekly lessons that are 20 to 30 minutes each for students K through fifth grade.  The Agricultural Education classes help teach the students by inviting them to help start the plantings in the greenhouse.  In addition, students learn to recycle plant and garden refuse in the compost pile. Fast added that several lessons in their curriculum involve visiting farms and dairies so that the students can get a better understanding of how food is raised on a large scale production.  

MKC’s donation will pay for the garden project’s new coordinator, Pam Abrahams.  An avid gardener herself, Abrahams commented that it was important to her that the students have an opportunity to grow their own food. “I think all children should experience the joy and wonder of digging in dirt and watching the seeds they helped to plant grow,” she said.

Rig technology cuts producer costs

Jeff Williams, an MKC producer in the Marquette area, has been doing his business at the Marquette location since 1981. He remained there when Marquette merged with MKC and in the years since he has seen many changes.

“The biggest thing we’ve noticed is the newer equipment, they are more timely,” said Williams.

MKC strives to provide agronomy services with the latest and best technology, as well as provide a level of service that is unsurpassed by others in the industry. This goal is accomplished by utilizing the best equipment and ensuring excellent customer service is constantly maintained.

Joining forces for ag education

Educating today’s youth about agriculture has become a concern for many in recent years. Often children do not understand that many of the things they use every day are products of agriculture, nor do they realize the farm equipment and products they could encounter have potential to cause them harm.

Third graders across Dickinson County gathered earlier this fall in Abilene for “Ag Day” sponsored by the Dickinson County Farm Bureau, a day of farm education, safety, and fun.  Matt McCune, Talmage Location Manager, was on hand to assist Jeff Bathurst, an area producer, with a station on crop nutrient and crop protection safety.

Bathurst, who farms in the Abilene and Talmage area, has participated in the Farm Safety Day for the past eight years and places an emphasis in his farming practice on educating kids. McCune saw where Bathurst had been recognized in the community for his involvement in Ag Day in previous years and approached him about MKC getting involved in the education effort. This is now the second year the two have partnered to present for Farm Bureau.

 “It is important to educate the public about chemicals and what we use them for,” said Bathurst. “Part of MKC’s strength is they understand the farmer and we appreciate the help in educating the public.”

Students were shown the size of an acre of land, discussed safety practices when dealing with crop protection/nutrition products, and had a chance to view one of the Case Patriot sprayers, with 120 foot booms, MKC utilizes in agronomy services.

The students were amazed to learn from McCune that the spray rig could “drive itself” through the use of GPS technology and auto steer.

 “I feel that we need to educate kids in our cities and towns about farm safety, because there is a high likelihood that these kids will encounter farm equipment at some point in their life,” said McCune. 

Shane Eck, Lindsborg Location Manager, recently got involved in the effort to help educate area youth on agriculture by presenting a program on the process of how food and everyday products travel from the farm to their hands.

“I wanted to get involved in classroom education because I feel it is important to teach the next generation about the importance of agriculture.  There are a lot of individuals that do not truly realize the impact agriculture has on society and how much we rely on it,” said Eck.

Eck presented to the fourth grade class at Eisenhower Elementary School in McPherson, beginning his presentation by asking the students what kind of things they used every day. Responses ranged from vehicles to breakfast cereals.

Through an image based web map, students were shown how vehicles could be traced back to the farm by the use of ethanol fuels, a product of corn and milo, which are made locally in Kansas. Or how the cereal they had for breakfast was made from a wheat product.

“The class was very involved and receptive which helped the lesson progress as we hoped,” Eck commented.

Students then moved onto building a model pizza discussing how each ingredient in the pizza from the dough to the toppings came from agriculture. And as a treat for lunch, pizza was provided to solidify the idea that agriculture is truly what feeds them.

“The agriculture presentation by Mid Kansas Coop was a very engaging hands-on experience for my class,” said Tiffany Pacey, fourth grade teacher at Eisenhower Elementary.

“I felt the program went very well,” said Eck. “Since it was our first time presenting it I was unsure of how well it would be received.” 

Eck commented that he would like to further develop the program for middle and high school aged kids with a more advanced program that focuses on career opportunities in agriculture.

MKC places an emphasis on environmental and community stewardships as written in its Core Values. Involvement in safety and education programs is just one way this is demonstrated.

“They learned about where their food comes from through a wonderful visual display, and learned about the various crops grown in Kansas and their uses,” said Pacey. “My students loved looking at and touching all the grains that are grown in Kansas.”

 

Are you capturing your field's true potential?

The Veris Mobile Sensor Platform (M.S.P.) is a great starting block or addition to your precision platform.  The Veris utilizes a soil electrical conductivity (EC) member, pH electrodes as well as a GPS system to map out (down to the foot) the specific soil type, elevtion and pH levels in your field.  All of these elements can affect your field and reduce revenue per acre.  Having this specific data allows individual producers to make better decisions and take fewer chances when investing in their crops.

Features:

·         Minimal investment
·         Equipment design allows for minimal soild disturbance
·         Covers 35 acres per hour
·         Better pH representation (compared to grid sampling)

Benefits:

·         Provides base layer for precision management
·         Minimal soil disturbance (excellent for no-till)
·         Assists with zone management decisions
·         Helps in determining high and low yield areas
·         Make prescriptions based on zones
·         Determines variable seeding rates
·         Determines placement of crop nutrients
·         Saves money by sampling soil in correct areas

MKC will provide professional map books and interpretation of the maps to assist you in your decision making process.  For more information about the Veris M.S.P. program, contact your nearest MKC location.

MKC donates to Walton Rural Life Center

MKC recently presented a check for $4,000 to the Walton Rural Life Center in Walton.  Jeff Naysmith, MKC’s Location Manager at Walton made the presentation which was part of a matching funds program through Land O’ Lakes and the “Shared Success” program offered by CoBank.


Jeff Naysmith, MKC Location Manager, presents a
donation to students from Walton Rural Life Center.

“We truly appreciate this donation and would like to give a big Walton Rural Life Center thank you from the students and staff,” said Natise Vogt, Principal.  “Part of the money will go directly to enhance our project-based learning and part will go into our foundation for expanding the school.

Painting a big picture

Imagine your canvas is 109 feet tall and 250 feet wide.  While you don’t have to worry about painting with too many colors, you still want your work to resemble that of a masterpiece.

Crews from H and H Construction, located in Nebraska, were hired to paint a big picture for MKC. Well, maybe not a picture, but the canvas they are painting is a rather large one! The concrete elevator silos located in Buhler have been undergoing a facelift this past month.   

Repair work began August 20 as the crews repaired and sealed the areas where weather had caused the paint to chip away.  Painting began in September and is expected to be completed towards the end of this month or early November, weather permitting. 

When completed, this masterpiece will provide a picturesque backdrop to the business district located on Main Street in downtown Buhler. 



Crews prepare for painting by repairing and sealing areas
in which paint has chipped away.



Crews prepare for painting by repairing and sealing areas
in which paint had chipped away.

 

With completion of the west side, crews move to the south side.

 

Women in agriculture

Fall crops had been delivered to the Mid Kansas Coop at Castleton when Tina Collins started cleaning machinery and building fence in preparation for the cattle she would be bringing home for winter on her Reno County farm.



Dixie Mattas and her husband, Gary,
farm near Lindsborg.

At Dixie Mattas’ farm the routine is about the same, down to the waxing of the combine. While Mattas farms with her husband Gary, just north of Lindsborg, in McPherson County, Collins works solo, having taken over her family farm four miles south of Pretty Prairie.

Collins and Mattas make up about 26,800 female farmers out of Kansas’ nearly 70,000 farm operators according to the recent Census of Agriculture. Meanwhile Collins is part of an even smaller group of 7,943 women who are considered the principal operator of the farm.

Despite different farming operations, the two women share a passion for their work and an appreciation for MKC and how the cooperative has enhanced their lives in several ways.

Both women were raised on farms, and helping out was just always a part of their childhood.

“I loved it,” Mattas said of growing up on her parent’s farm near Bridgeport. The granddaughter of Swedish immigrants who lived in a dugout near Bridgeport, she says her roots run deep in central Kansas.