Input Finance Program Creates Win-Win Situation for Producers

By Nichole Gouldie, Communications Specialist

To help producers obtain the financing their operation needs, MKC in conjunction with the Cooperative Finance Association, Inc. (CFA), provide reliable financial products and services to its members for all of their fertilizer, chemical, seed and petroleum needs.

"CFA is a valuable tool for any cooperative member," said Keith Kincaid, co-owner of S&K Partners near Haven. "CFA is convenient, user-friendly and competitive to any financing program in the industry."

Input finance program earns recognition

MKC's input finance program has been recognized by the Cooperative Finance Association (CFA) for holding the number one position in the Top Ten Volume Award 2012.

“CFA is such a great tool for our field marketers and managers. It helps them in selling the product, helps in timing of grain marketing - it is more than just funding the producer’s inputs,” said Brent Heizelman, Credit Manager for MKC.

Steve Fenton, Portfolio Manager for CFA, presented the award to MKC and said that, “MKC is a fantastic group to work with. Our goal is to help MKC and their producers be successful, and in turn make CFA successful.”

CFA serves over 140 cooperatives in 13 different states. Over the 2012 crop year MKC generated 171 loans totaling over $20 million.

Heizelman stated that the loans offered through CFA present the farmer member with convenience more than anything else. “It is so convenient for the producer to not have to worry about how he is going to pay for his fertilizer or seed one month after he purchases it,” said Heizelman.

Dave Christiansen, President and CEO for MKC commented that the number of loans and total loan volume continues to grow.

“While the recognition for our efforts is certainly nice for our entire team, the loan volume demonstrates our efforts are working to insure customers can have the available capital at their fingertips to take advantage of opportunities when they present themselves,” stated Christiansen. “CFA gives us one more tool to help them manage their risk.”

Double crop soybean revenue program now available

MKC recently announced they will once again offer a revenue program designed to assist growers in managing the risk (primarily weather) associated with growing double crop soybeans. 

Last year, MKC was the first in the nation to offer this one-of-its kind program when double crop soybeans weren’t traditionally eligible for federal crop insurance.  At the time, the program was offered in 11 counties but has since been expanded to include 21 counties in the south and north central counties of the state. 

Soybean revenue program still in development stage

MKC management continues to work with Swiss Re to develop a revenue program designed to assist growers in managing the risk (primarily weather) associated with growing double crop soybeans.

Last year, MKC was the first in the nation to offer this one-of-its kind program when double crop soybeans weren’t traditionally eligible for federal crop insurance. The program was offered in 11 counties last year and representatives are working to expand to additional counties.

According to Dave Spears, MKC’s Chief Marketing Officer, Swiss Re has recently asked for more detailed information to assist in the completion of the data analysis. Spears commented that the variation of risk in each county is creating a challenge.  “The variation between counties is amazingly different,” stated Spears.  “Swiss is taking a hard look at this and it could mean that costs may vary per county.”

Swiss Re is still determining the availability of the program for our area at this time.