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“ F I R S T I N M A R K E T I N G , S E RV I C E , A N D S U P P L I E S T O I M P R O V E M E M B E R S ’ P R O F I TA B I L I TY.”

Battle Creek Location

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FCA Awards Scholarships

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Meet Eben Salton

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Save $3 a Gallon or More with Bulk Oil

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MANAGER’S CORNERBy Jim Carlson

General Manager

jcarlson@firstcoop.com

F I R S T C O O P E R AT I V EA S S O C I AT I O N

Learning Never Stops

Seems like time never slows down, doesn't it? Graduating seniors earned their diplomas at local high schools throughout our trade territory this spring, and soon they’ll be heading to college.

I’d like to congratulate all these graduates, especially the 20 seniors who received scholarships from First Cooperative Association (FCA) this year. We are proud to help you continue your education. Learning never stops for those who succeed in life.

We also hope some of these graduates and scholarship winners will consider FCA when it’s time to find internships or full-time jobs. We hit the jackpot this year and are pleased to have seven interns this summer from Iowa State University to Morningside College. These interns are working throughout FCA in the agronomy and feed departments.

Not only are these students learning about FCA’s operations, but this summer they will have the chance to attend additional training seminars hosted by some of the companies FCA works with. We’d love to get more interns in information technology and other departments throughout FCA. If you know a college student who is looking for an internship, have him or her reach out to Mike Thompson, FCA’s sales manager.

New projects take shape Not only does your cooperative invest in young people in our communities, but we invest in FCA’s facilities to serve you better. In Granville, we’re adding a 514,000-bushel

grain bin this summer, along with a 20,000- bushel-per-hour grain leg. Much of the concrete was done by late May, and the steel work is starting in late June.

At our Marathon location, we’re adding a new 12-foot by 80-foot truck scale. Both this scale and the projects in Granville will be ready by harvest this fall.

Thanks for your continued support of FCA. The learning never stops here as we seek new ways to recruit talent, invest in our facilities, and offer the products and services that will keep you competitive, both now and in the future. ◗

We’ll be adding a new 12-foot by 80-foot truck scale at our Marathon location this summer.

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©2017 First Cooperative Association. All Rights Reserved.

Larry Johnk can remember a time when people said, “You’re a real elevator when you handle 80,000 bushels a day.” “Today, that would seem kind of slow,” said Johnk, First Cooperative Association’s (FCA) Battle Creek location manager. “When we became part of FCA a few years ago, we did 130,000 bushels of corn in just one day.”

Keeping things running smoothly isn’t always easy, especially at harvest. “A couple years ago, we were at capacity and had three dumps break down,” said Johnk, who has worked at the Battle Creek location since 2004. “We got them going again within half an hour.” It’s quite an accomplishment for a location that only includes two full-time employees, and a few part-time seasonal employees. “When you get done at the end of the day, challenges like this give you a sense of accomplishment and show what we’re made of,” Johnk said.

Growing the grain business That’s how it goes at Battle Creek. The location has a capacity of approximately 1.01 million bushels, and business keeps growing. “We have room for only 200,000 bushels of beans, and we shipped 300,000 bushels of beans in October 2016 alone,” Johnk said. Battle Creek is a truck-only facility, since the location’s rail line was torn out around 1982-83. Back then, the business was called the Home Elevator and was owned by a group of investors/farmers.

After Galva-Holstein Ag bought the Battle Creek location in 2004, they added a 640,000-bushel bin and put in a 20,000-bushel-per-hour grain leg in 2006. After FCA acquired the Battle Creek location in 2011, the co-op added a 4,000-bushel-per-hour grain dryer.

“This really grew our grain business,” said Johnk, who noted that most of the corn goes to ethanol plants in Galva and Arthur, while the beans go to processing plants in Manning or Sergeant Bluff.

Meeting feed needs While many customers deliver grain to Battle Creek, some stop in the office to check the markets, or buy feed. Battle Creek carries cattle feed, QLF liquid feed, Hubbard feed and mineral products, along with pet food.

One of FCA’s feed sales team, Matt Lacey, is based in the Battle Creek office, while Justin Grove handles outside operations and feed. It’s a good fit for this

former over-the-road trucker, who has his own cow-calf herd.

During harvest, the Battle Creek team also includes two to three part-time seasonal employees, including Karen Bumann, who retired from her full-time job with FCA in December 2016. “Karen has been in the co-op business more than 40 years and worked at Battle Creek since 2008,” Johnk said. “She’s invaluable, because she can run the office, the scale and the elevator, too.”

People are the key making any business work, and that includes FCA’s loyal customers. “I like the people we serve,” Johnk said. “They’re not just customers; they’re your friends.”

While Johnk has worked in the co-op system for 38 years and can remember when a five-location co-op was considered big business, he still likes the challenge of being a location manager, especially at harvest.

“It’s fun to serve our farmers and work for a successful company like FCA.”

Editor’s note: Johnk, an Ida Grove native, grew up in town but started his career in agriculture at age 19, when he started driving a tender truck for Coop Incorporated in Ida Grove. He has stayed in the cooperative system ever since. ◗

Battle Creek Location Shows What It’s Made Of

Larry Johnk, Battle Creek location manager

Justin Grove, a cow-calf producer, handles outside operations and feed at our Battle Creek location.

A�er FCA acquired the Battle Creek location in 2011, the addition of a 4,000-bushel-per-hour dryer grew the elevator's grain business.

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Investing in the future of agriculture and rural Iowa is important to First Cooperative Association (FCA). Since 1997, FCA’s scholarship program has awarded more than $154,000 to graduating high school seniors within our trade area. Congratulations to the 20 recipients, who were each awarded a $500 scholarship this year:

Jordyn Bingham, the daughter of Scott and Lisa Bingham, is a graduate of Cherokee Washington High School. Jordyn plans to attend the University of Nebraska-Omaha and major in criminal justice and psychology.

Clare Conley, the daughter of Bonni Conley, is a graduate of Cherokee Washington High School. Clare plans to attend Iowa State University and major in agricultural education.

Frances Conley, the daughter of Bonni Conley, is a graduate of Cherokee Washington High School. Frances plans to attend the University of Northern Iowa or Iowa State University and major in management information systems and

accounting or agribusiness.

Cole Degen, the son of Rich and Michelle Degen, is a graduate of Ridge View High School. Cole plans to attend Iowa State University and major in agricultural engineering.

Evan Else, the son of Stuart and Jill Else, is a graduate of Ridge View High School. Evan plans to attend Iowa State University and major in ag engineering.

Emma Friedrichsen, the daughter of Jeff and Terri Friedrichsen, is a graduate of Cherokee Washington High School. Emma plans to attend Dordt College and major in animal science.

Jason Hinkeldey, the son of Kenneth and Denise Hinkeldey, is a graduate of Alta-Aurelia High School. Jason plans to attend South Dakota State University and major in agricultural business.

Chandler Hohbach, the daughter of Kirby and Julee Hohbach, is a graduate of Cherokee Washington High School. Chandler plans to attend the University of Iowa and major in elementary education.

Morgan Jacobson, the daughter of Travis and Shelly Jacobson, is a graduate of Alta-Aurelia High School. Morgan plans to attend the University of Northern Iowa and major in education.

Dylan Kohn, the son of Gerard and Donna Kohn, is a graduate of Cherokee Washington High School. Dylan plans to attend South Dakota State University and major in animal science.

J.C. Lange, the son of Mark and Kari Lange, is a graduate of South O’Brien High School. J.C. plans to attend the University of Northern Iowa. While his major is undecided, he’s interested in business.

Dreysen Lindgren, the son of Stan and Sylvia Lindgren, is a graduate of Kingsley-Pierson High School. Dreysen plans to attend Iowa Lakes Community College and major in agronomy.

Mitchell Moritz, the son of Craig and Wendy Moritz, is a graduate of Kingsley-Pierson High School. Mitchell plans to attend South Dakota State University and major in agronomy.

Jon Pickhinke, the son of Lynn and Denise Pickhinke, is a graduate of Ridge View High School. Jon plans to attend Iowa State University and major in agricultural studies.

Brady Rusk, the son of Darron and Erin Rusk, is a graduate of Sioux Central High School. Brady plans to attend Augustana University and major in biochemistry.

Jessica Sandhoff, the daughter of Michael and Yvonne Sandhoff, is a graduate of Storm Lake St. Mary’s High School. Jessica plans to attend Iowa State University and major in elementary education.

Mason Timmerman, the son of Adam and Jana Timmerman, is a graduate of Cherokee Washington High School. Mason plans to attend Iowa State University and major in computer engineering.

Travis Weiler, the son of Cory and Robin Weiler, is a graduate of MMCRU High School. Travis plans to attend Iowa State University and major in business.

Logan Wenzel, the son of Shane Wenzel and Erica Wenzel, is a graduate of Kingsley-Pierson High School. Logan plans to attend Northwest Iowa Community College and major in diesel mechanics.

Travis Zevenbergen, the son of Kurt and Sheila Zevenbergen, is a graduate of Unity Christian High School. Travis plans to attend Northwestern College and major in elementary education.

Good luck and best wishes in all your future endeavors!

FCA Awards 20 College Scholarships

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He began using cover crops in the 1970s. He adopted twin-row planting in 1998 and never looked back. He hasn't used any commercial fertilizer on the section of land close to the buildings—other than nitrogen—on his farm since 1979 because he's always had plenty of livestock manure. He’s Eben Salton, and he brings an inquisitive spirit and willingness to look beyond conventional wisdom to his role as a First Cooperative Association (FCA) board member. “I don’t just go with the flow,” said Salton, who farms northeast of Webb in Logan Township, Clay County. “I’m an independent thinker and like to share a different perspective.”

Q: What’s your farm background? A: I grew up 2 miles from the place I live now, and I’ve been on this farm since 1979. I knew when I was knee-high I wanted to farm. As a kid, I was in the Logan Leading Lads 4-H Club, where my dad, Sandy, was a leader. I was also in FFA at South Clay High School. I didn’t think about going to town on Saturday nights, because I was too tired from working on the farm.

I earned my degree in farm operations in 1972 from Iowa State University and looked forward to coming back to the farm.

While pigs will test your patience, I've always liked cows. In the 1970s, we had about 400 crossbred cow-calf pairs. We also sold purebred Simmental bulls and farrowed 100 sows per year and finished the pigs. Today, I have about 75 Angus Simmental cows. Angus helps with calving ease. Since I also like good marbling in a big ribeye sandwich, that's where the Simmental comes in.

Q: What might surprise people about you? A: I've only missed one year of the Clay County Fair, and that's because I was in basic training. I served in the National Guard for 13 years and earned the rank of sergeant. I started going to Alaska in 1971 to be a winter survival instructor with the military, and I did this for about 10 years. I also did some mountain climbing and rappelled down a glacier in 1976 when I was in Alaska. I went to Norway with the National Guard and also trained with the Olympic biathlon team in Vermont.

Q: What are some of the biggest changes you’ve seen in farming in your lifetime? A: One thing that has improved from my generation compared to my dad’s is high-tensile fence and the use of rotational grazing. Also, my grandpa cultivated all day with horses and got 80 acres done. Today, I can plant 30 acres an hour. Technology is going to take over. I can see drones and automation becoming big in ag. Q: How do you innovate on your farm? A: I read a lot of farm magazines and do my own trials. I started using cover crops in the 1970s. While I’ve tried about everything, I prefer cereal rye or oats. I’ve planted my beans right into standing rye. I can plant beans earlier, because the rye will protect them from frost.

I started planting twin rows in 1998. At the time, people were talking about narrow rows. My twin-row corn has never yielded less compared to single-row corn, and, on good ground, I’ve seen twin rows yield up to 20% more. With soybeans, twin-row beans have a lot fewer problems with white mold. I’ll never go back to single rows.

Q: How else have you served the community? A: Beyond the FCA board, I’ve been on all kinds of church boards, the local Extension board and Farm Bureau. I also served on the Fair Beef Committee and was chairman of the Scramble Calf program for many years. I was the treasurer of the local cattlemen's group when we started the Branding Iron restaurant at the Clay County Fair in late 1970s or early 1980s. I was also treasurer of the local pork producers group when we started the Chop Shop a few years later at the fair. More recently, I served on the Ayrshire Telephone Board for more than 15 years until they sold the business a year or so ago. I am currently a Methodist Church lay speaker.

FCA BOARD MEMBER SPOTLIGHT:Independent Thinking Helps Eben Salton Share Unique Perspectives

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Q: What do you appreciate about FCA? A: FCA has been really good about adding more grain storage and offering faster grain dumping. Farmers appreciate that.

I haul my grain to Webb and use just about everything FCA offers. When you do business with the co-op, you get paid patronage dividends. If you do business with an independent ag business, that money goes in their pocket, not yours, plus you have no say in the business.

I also like FCA’s board members, who come from a large area around FCA’s territory. We have a great board, and I enjoy visiting with the other board members and learning from them.

Q: What opportunities do you see for FCA? A: I think FCA needs to continue to look at growth opportunities. If you’re not expanding, you’re going backwards. Some people say we can get too big. Big is not necessarily better, but more opportunities do present themselves when you’re a certain size.

FCA is fortunate to have good management and good employees to help the co-op grow. We have a good crew here at Webb, right down to the ones unloading grain, and I know we have many other good people working throughout the company.

Q: How important is it to mentor the next generation in agriculture? A: I think helping young farmers get started in agriculture is a key challenge we need to address. I’m fortunate to work with Bryan Sundall, a young farmer who lives just a mile away from my farm. He grew up near Ruthven and wanted to get started with livestock, so I started hiring him a couple years ago. It has been working out really well. I tell him it’s okay to be “manure-y” sometimes. It’s fun to see kids like Bryan and his wife, Shae, get excited about farming and livestock.

Editor’s note: In January 2018, Salton plans to travel in Israel for 10 days. He’s going with his sister, Marilyn, and her husband, who is a pastor in Leon, Iowa. Around Labor Day, Salton also enjoys taking his annual fishing trip to northern Minnesota with family members. “My dad used to go to farm sales and bought a wooden boat once,” Salton said. “It rotted before we ever got to go fishing. It’s important to make time to enjoy life.” ◗

FCA board member Eben Salton works with Bryan Sundall, a young farmer who lives nearby and wants to build a career in agriculture.

By Jim Bieber,

Energy Manager

jbieber@firstcoop.com

It’s time for action when it comes to filling up with liquid propane (LP). Not only do we have our summer-fill program underway, which saves you money, but big changes are shaping up in the LP industry and could lead to shortages.

May and June are the best times to fill your LP tank, since prices tend to be the most compet-itive this time of year. With First Cooperative Association’s (FCA) summer-fill deals you can: • Save 10 cent per gallon through June.• Save 7 cents per gallon through July. • Save 5 cents per gallon through August.

I also urge you to fill up your LP tanks sooner rather than later due to the supply chain. Last year at this time, there were roughly 73 mil-lion barrels of LP. Currently, there are about 42 million barrels.

If we have a normal build in propane supplies between now and the winter heating season, we should end up with 80 to 85 million barrels go-ing into heating season. By this point last year, there were 104 million barrels. All this means you’ll likely face higher LP prices if you don’t fill up now.

We’re lower on LP due to higher exports in January, February and March. If there’s a lot of grain drying this fall, exports stay strong and we have a cold winter, we could be looking at sizeable propane shortages.

Contact your nearest FCA location to place your LP order today and have one less thing to worry about. We appreciate your business. ◗

Save Up to 10 Cents on LP

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Dan Erickson knows how daunting grain marketing can be. “You’ve never heard any farmer say they’ve done the best possible job with their marketing, right?” says the Marcus-area corn and soybean grower.

Erickson and his father, Kent, had traditionally made cash sales at fall delivery and used a little forward selling. “You question your decisions, though,” Erickson said. “You don’t know when to pull the trigger.” That’s why the Ericksons decided to attend a grain marketing seminar that First Cooperative Association (FCA) offered this winter. They were intrigued by FCA’s grain marketing tools and met with Jason Hofmeyer, an FCA grain merchandiser, to learn more. Hofmeyer helped them tailor a marketing plan for their needs, including Decision Rules Contracts (DRCs) “Jason explained that DRCs aren’t a once-and-done, where you’re trying to hit a home run,” Erickson said. “It’s like hitting a series of doubles and triples, which made a lot of sense to me.”

How DRCs workDRCs average the futures price over a defined period of time to achieve a board price for the bushels enrolled. Some require a floor price to be met, others do not, said Wayne Pingel, FCA’s grain manager.

The bushels priced in each DRC vary based on the date trading began, as well as the pricing rules established for each DRC. “I think everyone should try DRCs,” Hofmeyer said. “It’s a computer system, so it helps take the emotion out of grain marketing. When the price you establish hits, your grain sells.” Not only does Erickson like the peace of mind that DRCs offers, since he doesn’t have to watch the markets every minute, but he also likes how Hofmeyer stays in touch. “I like talking to Jason, because I always learn something new from him,” said Erickson, who also appreciates Hofmeyer’s daily grain commentary email. Erickson encourages other farmers to take a look at FCA’s grain marketing tools and stay in touch with their grain merchandisers. “There’s always more to learn,” he said. “Grain marketing is about continuous improvement.” For more information on FCA's grain contracts, contact FCA's grain merchandisers, including Hofmeyer (712-230-1615) and Megan Plendl (712-898-6337). ◗

Decision Rules Contracts Simplify Grain Marketing

The wet, cold spring has been a tough start for the 2017 crop. I’m glad to see that many of you are doing a good job with putting on pre-emerge herbicides with dual modes of action. Controlling weeds early becomes even more important in a year like this. Now’s the time to stick to your plan and keep doing the right things. Stay in touch with your First Cooperative Association (FCA) agronomist about fungicides, crop scouting, soil sampling and more. Speaking of soil sampling, did you know we do a lot of grid sampling in spring? We can keep pulling samples until the crops are so big you can’t drive a 4-wheeler through the field. If you didn’t get any grid samples done this spring, talk to your FCA agronomist about getting sampling this fall. We appreciate your business and look forward to working with you. ◗

What Are Your Fields Telling You?

AGRONOMY NEWS By Mark Braunschweig

Agronomy Manager

mbraunschweig@firstcoop.com

SIGN UP FOR FREE DAILY MARKETING COMMENTARY FROM FCA Want a quick snapshot of the markets each day? Jason Hofmeyer, FCA grain merchandiser, provides a free, daily roundup of grain commentary and news each weekday with his morning market update. To sign up, email Hofmeyer jhofmeyer@firstcoop.comand provide him with your name and email address. ◗

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By Marty Lau

Certified Energy Specialist

mlau@firstcoop.com

Save $3 a Gallon (or More) with Bulk Oil

Your Cooperative Needs YouThe August 31 year-end for First Cooperative Association (FCA) is fast approaching, and that means it’s almost time to elect members to your co-op’s board of directors. Five incumbents up for re-election have decided to run again. They include:• Doyle Anderson, east district • Mason Goodenow, south

district • Tom Lehnhoff, west district• Robert Parker, central district • Charles Specketer, north

district It’s always tough to find Class A members of FCA who are willing to run against an incumbent. In the last few years, your board and FCA management have conducted a full review of the nomination and election process and have made adjustments to better fit the times. FCA’s leaders saw no merit in recruiting candidates just for the sake of running an opponent. Also, we are continuing to downsize the FCA board, but at the same time we’ve increased the board with representation from the Kingsley, Paullina, Granville and Hospers areas. Remember, a Class A member can run for the open positions on the board. Nobody is entrenched on the board, and it’s not a closed club. We welcome new candidates to run for the board, and we encourage you to take advantage of this opportunity. Contact a current FCA board member for details, or call Jim Carlson at 712-225-5400 by July 31. Thanks for your support of FCA. ◗

Want to save at least $3 a gallon on oil and save your back at the same time? You won’t have to drag heavy oil drums around with a customized bulk oil dispensing system from First Cooperative Association (FCA). Bulk dispensing systems work great for farms and other businesses. They also offer a 20% return on your initial investment, compared to drum oil pricing. It’s likely your ROI could be 30% to 35% with the right bulk oil system tailored to your needs.

Convenient bulk-oil systems can be designed for any setup, big or small. Our smallest system includes a single 80-gallon tank, while our larger setups include 330-gallon tanks. Options include stackable tanks, dual tanks, triple tanks and quadruple tanks.

Let’s take a look I recently worked with a client to add a new bulk-oil dispensing system in a shop in northwest Iowa. The system pictured above is set up with 12 120-gallon tanks with individual lubricants (including engine oil, antifreeze, hydraulic oil and transmission fluid) for various equipment.

A hose on a reel is attached to the tank, and an automated matrix meter allows you to program the amount of product you need. This means you can walk away and start on another project, since the system will shut off automatically at the selected amount.

Enjoy peace of mind, hassle-free service All of the pumps and meters available through FCA come with long-term warranties and are calibrated to be accurate to the pint, quart, liter or gallon. I handle the installation of the totes and pumps.

Using Cenex Lubricants from FCA also gives you the unsurpassed Cenex Total Protection Plan, which provides valuable coverage for your equipment.

Also, bulk fluids can be topped off the second week in August and the second week of March each year. Topping off your totes on the spring and fall route run helps keep costs down on the bulk lubricants. If you’re using products faster than that, we prefer that you give us one week of lead time so we can get you on the delivery route. If you’re really low on product, call me (712-229-2880), and I’ll line up the truck to make the delivery if you can’t wait.

Ready to make your life easier? If you’re tired of handling heavy oil drum or plastic jugs, give me a call (712-229-2880). I’ll help design a bulk-oil system just for you. I look forward to working with you and appreciate your business. ◗

FIRST COOPERATIVE ASSOCIAT ION

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FEED FOCUSBy Marc Hinners

Feed Manager

mhinners@firstcoop.com

Feeding your livestock’s potential just got a whole lot easier, whether you’re a commercial operator needing bulk feed or a youth livestock exhibitor who wants a complete show feed. Count on First Cooperative Association’s (FCA) feed department for: 1. High-quality feed. Our grain-mix

mill in Galva and the Hubbard plant in Sioux City can supply all your cattle grain mixes. Our mills are located throughout our trade territory to serve you efficiently and offer you options. We have three options for swine feed, including our Paylean® positive mill at Holstein, as well as two Paylean-free mills in Larrabee and Paullina.

2. Trusted brands. We work with a number of high-quality livestock nutrition suppliers, including Hubbard, Purina, Furst-McNess, Ralco, Spencer Ag and more, to cover all your livestock supply needs.

3. Knowledgeable staff. Our cattle specialists Matt Lacey (712-371-3128) and Taylor Dorsey (712-249-5710) can assist you with all your cow-calf and feedlot needs, including balancing rations, cattle

placement, feed products and feedlot cattle tracking and billing. On the swine side, Mike Smith (515-669-8194) is available to help you with budgets, record keeping or assisting your family with show animals. Give these folks a call for more information.

4. Convenience. A variety of FCA locations can get you the pet foods, horse feed, livestock supplements and complete feeds you need. FCA also has a dedicated central warehouse to ensure we have the livestock products you need, when you need them. This also allows us to buy in volume and help you receive the competitive prices.

Thanks for doing business with FCA’s feed department. We look forward to working with you. ◗

Find 4 Feed Solutions at FCA

Wow! We were pleased to see 72 parents and kids at Moville, and 54 at Cherokee in April when we teamed up with Hubbard Feeds for our second-annual Show-Rite® Youth Clinics. These events were geared towards kids ages 5 and up. The speakers shared tips for the proper care and feeding of swine, beef, goats and sheep. Rand Whitney from FCA’s Ida Grove location talked about goats and sheep, using live animals in the training. We believe it’s important for your cooperative to give back to the community, and the youth livestock clinics are a good way to do this. ◗

YOUTH CLINICS PROVE POPULAR

Save $3 a gallon (or more) with a customized bulk oil system from FCA.

Get the details on page 7.