Ag Scene 2013

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PLUS ARTICLES ON:
Future Farmers of America Program| Henslin Auctions, Inc.
MN Pork Congress | Bongards’ Creameries
WSCARoyalty
FFA not just
for ‘farm kids’
anymore
Drought concerns in 2013
AG SCENE
MARCH 2-3, 2013
A SPECIAL SUPPLEMENT TO
The Renville County Shopper & The Glencoe Advertiser
4 Square Builders ..................................27
A+ Insurance Agency, Inc. ..................22
ADM Edible Bean Specialities, Inc. ....36
After Burner Auto Body..........................6
Ag Specialists ........................................44
Ag Venture Corn Capitol Innovations ..48
Alsleben Livestock Trucking ................39
Arnold’s Implement Inc.........................21
Bird Island-Hawk Creek
FarMutual Ins. Agency ....................33
Bergmann Interiors................................31
Bird Island Soil Service ........................29
Borka Excavating ..................................40
Brownton Co-op Ag Center ....................8
Brust Electric ..........................................8
Carly’s Shoes ........................................13
Community Electric ..............................11
Co-op Country Farmers Elevator ........11
Creative Details ....................................29
Crop Production Services......................40
Crow River Glass, Inc. ..........................40
Dahlberg Boot & Trailer Sales ..............26
Dale’s Auto Sales ....................................6
Danube Lumber ....................................25
Danube Upholstery & Shoe Repair ......26
Dawson Co-op Credit Union ................28
Dobrava Bros., Inc.................................30
Duane Jindra Crop Ins. Agency ............40
Edward Jones - Kirk Miller ..................39
Enestvedt Seed Co ................................47
Ervin Well Company ............................29
Exsted Realty ........................................35
F & M Bank Minnesota ........................47
F & M Insurance....................................23
Fahey Sales..............................................6
Farmers & Merchants Ins. Agency -
Steve Agre ........................................34
Farmers & Merchants State Bank ........34
Farmers Co-op Oil Co ..........................26
Finish Line Seed Inc. ............................33
First Minnesota Bank ..............................7
First Security Bank..................................4
Flatworks Concrete Const., LLC ..........12
Flora Mutual Insurance Co. ..................19
Foamtastic Insulation, Inc. ....................24
Frandsen Bank & Trust..........................11
Gale’s Tax Service ................................40
Gavin, Winters, Twiss, Thiemann
& Long, Ltd. ....................................18
Gerald Kucera PHI ..................................6
Glencoe Co-op Assn..............................44
Glencoe Oil Co. ....................................30
Glencoe Veterinary Clinic ....................40
Grizzly Buildings, Inc. ..........................11
Harpel Bros. Inc. ..................................46
Harvest Land Cooperative ....................19
Hearing Care Specialists, Kurt Pfaff ....12
Heller Group Realty ..............................26
Henslin Auctions, Inc. ..........................22
HomeTown Bank ..................................24
Hotovec Auction Center ........................43
Hughes Auction Service, LLC ................4
Hutchinson Co-op..................................10
Hutchinson Health Clinic ......................38
J & R Electric Inc. ................................11
Jerry Scharpe Ltd...................................39
JR Insurance Agency ............................43
Jungclaus Implement ..............................8
K & S Electric ......................................25
Keith L. Scott Agency ..........................34
Ken Franke’s Conklin Service ..............44
Ken’s Excavating ..................................39
Klein Bank ............................................30
Lano Equipment of Norwood, Inc.........10
Larkin Tree Care & Lndsg Inc. ............25
Linder Farm Network............................16
Lynn Schauer - Puppies ........................13
Mallak Trucking Inc. ............................29
McLeod County Solid Waste ..................7
McLeod Publishing, Inc. ..........41, 45, 46
Mid Minnesota Builders, Inc.................46
Mid-County Co-op ................................38
MidCountry Bank..................................15
Midwest Agri Insurance ........................12
Midwest Machinery ..............................43
Minnesota Corn & Soybean Growers ..42
MinnWest Bank ....................................36
Morris Builders......................................14
Mustang Seeds - James Duenow ..........35
Mycogen Seeds - Brad Pietig ................34
Northern Plumbing & Heating, Inc. ......24
Northland Buildings ..............................30
Olivia Chrysler Center ..........................36
Olivia Liquors........................................33
Olivia Machine Shop Inc.......................33
Olivia Pet Clinic ....................................33
Otto Farms Operations Inc. ....................6
PHI Insurance - Chad Schmalz ............14
Precision Planting - Chad Schmalz ......37
ProAg Celebration ..................................4
Pro Auto ................................................31
Pro Equipment Sales ............................34
Professional Insurance Providers ..........21
Rainy Water Conditioning, Inc. ..............2
RAM Builders ......................................10
Renville Sales, Inc. ..................................3
Richard Larson Builders, Inc...........30, 40
Sam’s Tire Service ................................42
Saunders Mertens Schmitz, PA ............29
Schad, Lindstrand & Schuth, LTD........21
Schauer Construction Inc. of Glencoe ..31
Schauer & Sons Construction................30
Schauer’s Sheep ....................................45
Schiroo Electrical & Rebuilding, Inc. ..10
Security Bank & Trust Co. ....................31
Seneca Foods Corp. ................................9
Silver Stream Shelters - Pete Schilling....6
Simonson Lumber ................................18
State Farm Insurance ............................47
Sullivan’s Electric..................................47
Sunderland Engineering, PLLC ............22
Tall Tires................................................19
Terry’s Body Shop ................................47
Thalmann Seeds ....................................44
Titan Machinery ....................................11
Tjosvold Equipment, Inc. ......................28
Two Way Communications ..................21
United FCS............................................36
United Farmers Coop
........................6, 18, 21, 30, 39, 40, 44
Upper Midwest Management ................25
Valley Electric of Olivia Inc. ................33
Valley View Electric, Inc. ......................45
Willmar Aerial Spraying Inc. ................25
Wood’s Edge............................................8
Young America Mutual Ins. Co. ............40
AG SCENE - 2 - MARCH 2 & 3, 2013
Index
NEWS INDEX
More risk in 2013 due to drought concerns ..............................................................p. 3-4
40 years for Form-A-Feed ..................................................................................................p. 5
Cheese is big business for Bongards’................................................................................p. 7
Bonderson earns WSCA royalty title ..............................................................................p. 9
There’s money in ethanol ................................................................................................p. 11
FFA is not just for ‘farm kids’ anymore ........................................................................p. 13
Ethanol fast facts ................................................................................................................p. 15
Big oil and grocery giants’ claim against ethanol denied............................................p. 15
Fahey Sales relocates its main office in Glencoe ........................................................p. 17
Soybeans losing out to corn? ..........................................................................................p. 19
Grape growing fever continues ......................................................................................p. 20
A hall of fame career made possible by the help of others ................................p. 23-25
A new shop for Bob Mehlhouse ..............................................................................p. 25-26
Minnesota a growning agricultural state........................................................................p. 27
Buffalo Lake is buzzing ................................................................................................p. 28-29
Ag’s ‘super cycle’ hitting a bump? ..................................................................................p. 32
Thievery hits the hay market ....................................................................................p. 33-34
China remains top importer of U.S. soybeans ............................................................p. 37
Where are prices headed? Watch the weather ..........................................................p. 43
Fast facts about agriculture ..............................................................................................p. 45
Thank you to all of our advertisers for contributing to the 2013 Ag Scene supplement.
Thank you to the writers and interviewees, for the editorial content.
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MARCH 2 & 3, 2013 - 3 - AG SCENE
By Dick Hagcn, Contrihuting
Rcportcr, RenvIlle County RegIster
More concerns about worlo markets lor
U.S. agricultural prooucts this year? Al
Kluis, long-time veteran commooity bro-
ker simply stateo, We`ve got a real chal-
lenge alter last year`s historic orought.
Right now there`s a huge concern about
proouction out ol South America, specili-
cally Argentina ano Brazil.¨
The cropping season starteo extremely
wet in both countries but Argentina has
not receiveo measurable rain since Dec.
2¯. As we talk tooay ,Jan. 22, the soybean
market is up 2¯ cents. A lorecast ol proba-
ble showers can quickly erase that. But it
appears to me the market is now collective-
ly ramping oown the earlier projection ol
huge crops out ol South America,¨ noteo
Kluis.
The U.S. still leaos in worlo proouction
ol soybeans. But Brazil is closing in ano
Argentina ranks No. three. He pointeo out
Argentina has three times more soybean
acres than they oo corn acres, largely oriv-
en by their oemano lor cash. They`ve got
some inllation issues, plus some Govern-
ment oebt problems. Flus when you get
into a monoculture, beans on beans, you`re
lacing some growing oisease challenges
also.¨
Jumping across the Facilic Kluis sees
China as a continually expanoing market
lor U.S. agricultural prooucts be that corn,
soybeans, soybean meal, pork, beel, even
poultry. China currently has about 10 per-
cent ol worlo population but only about
one percent ol the worlo`s arable lano.
So as their oiets improve they want
more poultry, more broiler proouction,
more reo meat both beel ano pork. The
Chinese people simply want a better oiet
ano the U.S. ano South America are the
only provioers. Just a lew years back China
exporteo corn into worlo markets, tooay
they are a huge importer ol corn. They
can`t ramp up more proouction ol either
corn or soybeans but insteao are shilting to
more high value vegetable, lruit ano spe-
cialty crops that are more labor intensive.¨
Kluis speaks ol huge changes in the
pork inoustry in China. Though still the
largest pork prooucing country in the
worlo, it can`t meet oomestic oemano. But
it`s no longer the three to live-sow back
yaro` lamily proouction. Tooay much larg-
er ano olten totally integrateo pork pro-
ouction systems olten involving thousanos
ol sows are becoming the norm.
They have mooern equipment, also
well traineo nutristionists ano veterinarians
but they simply can`t proouce enough pork
to satisly their own oemano. So soybean
meal lrom the U.S. ano South America
plus pork lrom America will keep growing
in stature.¨
But are blips in the Chinese economy
potentially impacting markets lor U.S.
agricultural prooucts? Kluis noteo that in
2011 they sloweo to 7.! percent growth in
their GDF ,Gross Domestic Froouction,
Submltteo pboto
Al Kluls.
Rlsk
Turn to page
More rlsk ln 2013 oue to orougbt concerns
Risk
Turn to page 4
AG SCENE - 4 - MARCH 2 & 3, 2013
Rlsk Contlnueo trom page
which is still huge compareo to U.S.
ligures. But the last quarter ol 2012 was
7.9 percent with projections lor an eight
percent growth in 2013.
So oon`t look lor any major oisasters
in the Chinese economy,¨ saio Kluis.
Flus the China government successlully
sloweo speculation in stocks ano real es-
tate. Looking at their FMI Inoex ,Fur-
chaser ´Manulacturing Inoex, you see a
signilicant ramp up in their manulactur-
ing. That tells me more ano more people
are moving lrom the countrysioe into the
cities. Ano that means bigger pay checks
lor more people living closer to super
markets ano other consumer gooos stores,
they`re closer to more restaurants ano
they`re eating more pork ano more chick-
en.¨
Last year China crosseo the thresholo
ol more people living urban areas than in
rural areas. Kluis suggesteo that is the
benchmark ol a population rapioly mov-
ing into a capitalistic society, even in the
lace ol their Communist government.
So with all those gooo things happen-
ing in China, how ooes Kluis reao the at-
tituoe ol American larmers? Will the
goloen years` cycle continue? Because
he`s a stuoent ol charts ano the trenos
these charts portray he commenteo, I
stuoy long term cycles ano ouring a 10-
year cycle you usually have three years ol
gooo prolits, two years ol meoium prolits
ano then live years ol unpreoictable mar-
keting. With the high lano costs ano pro-
ouction costs now in place it`s going to be
challenge to have the prolits in 2013 that
we hao in 2012.¨
His reao on ethanol markets? Unless
we get over this blenoing wall I think the
ethanol market is stagnant. Some ethanol
plants have shut oown, more are scheoul-
ing slowoowns or shut oowns shortly. Fro-
cessing margins simply aren`t generating
prolits right now.
Il we can just maintain ethanol corn
usage at !.¯ to live billion bushels I think
corn prooucers, livestock prooucers ano
consumers can be okay too,¨ summeo up
Kluis.
Dick Hagcn is a frccIancc vritcr and
frcqucnt contrihutor to and othcr
agricuIturaI puhIications.
Risk Continued from page 3
MARCH 2 & 3, 2013 - 5 - AG SCENE
By Dick Hagen
Contributing Reporter
Glencoe Advertiser
Launched in 1973 by Marty and Steve
Nelson, with generous guidance from their
Dad, Buzz Nelson, Form-A-Feed Inc., is
celebrating 40 years of success in the very
competitive livestock feed industry. And
Stewart, where Buzz and his two sons pur-
chased a small feed mill 40 years ago, is still
the hometown and headquarters of this
unique feed manufacturing business that
has created more than 2,000 active feed for-
mulas and markets nationwide, including
Canada, Mexico and even into overseas
countries.
Commented Rick Magas, Form-A-Feed
sales manager and a 29-year employee,
“We’re still a family-owned company that
has evolved into multiple companies pro-
viding a tremendously diversified product
line that serves the entire livestock indus-
try.”
Today, Form-A-Feed markets from
Pennsylvania to Arizona. With their sister
companies, TechMix and Sci-Tech, they
have alliances with other firms in various
parts of the world, including Japan and sev-
eral European nations.
Currently 220 people are employed
under the Form-A-Feed umbrella. Because
Research & Development is such a strategic
part of the innovative success of this outfit,
Form-A-Feed currently has four PhD em-
ployees, two Veterinarians and four with
master’s degrees in livestock nutrition.
Perhaps a key factor in the product suc-
cess of Form-A-Feed is that the bulk of their
research and testing of new products is
done on livestock farms and/or in collabo-
ration with various Upper Midwest univer-
sities. “We’ve done projects with South
Dakota State University, Texas A & M
University, Iowa State, the Unversity of
Wisconsin, Purdue and the University of
Minnesota, for example. Depending upon
the product's intended market, be that
dairy, beef, swine, even sheep and
goats, determines which particular
University we associate with,” said
Magas.
TechMix focused on veterinari-
an recommended products to address live-
stock stress situations such as freshening,
farrowing, weaning and transporting.
Founded in 1985 by Dr. Peter Franz,
DVM, TechMix is known worldwide for
BlueLite® re-hydration products for multi-
ple livestock species.
Sci-Tech Premixes started in 1986 with a
vision to supply premixes, mineral and vita-
min mixes to regional feed manufacturers.
Sci-Tech has become a leader in direct-fed
microbials (DFMs), inoculants and micro-
nutrients for all livestock species by improv-
ing forage quality, aiding in digestion, and
fortifying diets to promote animal perform-
ance. Sci-Tech even provides farm evalua-
tions, nutritional consulting and feed for-
mulations. Research also continues in nu-
traceutical, microbial and feed quality
areas.
The product mix of Form-A-Feed is ex-
tensive and includes: Micros, Premixes,
Minerals, Specialty Products, Ingredients,
Water Soluble Products, Liquid Feeds, Base
Mixes, Concentrates, Complete Feeds, Bo-
luses, Low-moisture Tubs, Liquid Starters
and Organics.
Perhaps unique about Form-A-Feed, is
their custom formulation of special feeds
enabling clients to privately label their
products. “As livestock operations get big-
ger, this marketing service interests new
clients and is key to some of our long-time
established accounts,” noted Magas.
Also unique at Form-A-Feed is their
T.E.N. Products lineup which stands for
Timed Event Nutrition. These products are
specially designed to support additional nu-
tritional needs during stressful animal
stages. Today, Form-A-Feed offers more
than 40 T.E.N. products.
The firm also provides NutriSource, spe-
cially labeled pet foods and products for
game birds, pigeon, duck and geese, even
horse and rabbit nutrition items. And talk
about diversity, Form-A-Feed’s Natur O
consists of natural fertilizers for golf courses
and home lawns.
Very familiar on Minnesota highways
(and elsewhere) are Form-A-Feed delivery
trucks. From tandem trucks to bulk or bag
semis, the firm delivers direct to meet any
customer’s needs. Our customers are wel-
come to pick up their products at either the
Stewart location or their Atwater facility.
So what’s the charisma that fuels the pas-
sion of Form-A-Feed employees? And
keeps growing more customers?
“Customer loyalty is the keystone to our
success but you’re only as good as your
products,” said Magas. But he credits the
value of their T.E.N. products as instru-
mental in ongoing growth particularly as
livestock numbers keep increasing on client
farms.
“A nursery diet for young pigs might typ-
ically have 5 phases of diets; a grow/finish
hog utilizes 6 or 7 different diets. So the in-
creasing complexity of diets is an ongoing
challenge but it also is a service factor that
often separates Form-A-Feed from the rest
of the pack,” he noted.
Form-A-Feed doesn’t get into the prepa-
ration and delivery of a total ration. Its his-
tory is based on the premise of supplying
the right premixes
and base mixes
including concen-
trates and miner-
als for the farmer
to combine with
his home-grown
feeds. “We also
do joint ventures
with elevators
and feed mixing
centers that do
the further manu-
facturing into a
finished feed
product. We pro-
vide some of the
technical support
and much of the
specialty nutri-
tional needs plus vitamins and trace miner-
als. The local feed mill than does the grind-
ing, mixing and delivering to their local cus-
tomers,” said Magas.
In the old days, when most Form-A-Feed
sales were within a 50-mile radius of Stew-
art, direct to the farmer was the heart of
their customer service. Today the firm
works with over 40 joint ventures which
provides the “best team” for both compa-
nies to provide the nutritional needs of the
livestock of each individual customer.
Tighter margins in the livestock industry
often are the inertia for developing even
more specialty products. For example,
Magas mentioned their Form-A-Lean prod-
uct was created to increase the energy avail-
ability in DDG feedstuffs and also replaces
part of the fat added to a ration which re-
duces cost.
A credit to the genetic improvement of
American livestock is that the feed efficien-
cy of livestock keeps getting better. “Years
back, pork producers running with a 3.5
feed conversion (3.5 pounds feed/pound
gain) would have been considered good.
Today most of the wean-to-finish barns are
running in a 2.5 feed conversion. Much the
same has happened on the beef side plus
producers are growing much larger animals
as well. Today, instead of a 220-pound
butcher hog we’re talking 280-pound ani-
mals,” he said.
With the growth of the ethanol industry,
distillers dried grains have become common
in most livestock rations as a means of cut-
ting feed costs. “We’re seeing 10 to 20 per-
cent DDGs as most common choices in
swine rations; with beef cattle 30 percent
would likely be a starting point,” noted
Magas. Form-A-Feed now has a data base
on DDG feedstuffs that identifies the pro-
tein contents, the fat levels, and the nutrient
values of different DDGs. “This is great in-
formation in advising produces on how
much DDG to put into the ration for their
particular livestock species,” he advised.
Over the history of this remarkable com-
pany sales growth per year as averaged in
that 12% to 18% range according to
Magas. The firm operates as an ESOP
company (Employee Stock Option Plan)
which by its very nature tends to drive em-
ployee initiatives. Its state-of-the art manu-
facturing facility was built in 2007 but has
already twice been updated with new tech-
nologies to handle more new products and
improve overall efficiency.
Doug Renken, 27 years with Form-A-
Feed is general sales manager. Larry
Schutte, 35 years in the ranks, is general
manager. Today, Steve and Marty Nelson
are co-owners and navigate the future di-
rection of the company which will soon in-
clude the construction of a huge warehouse
facility on the banks of the Mississippi
River, St. Paul. For more info go:
www.formafeed.com.
40 years for Form-A-Feed
Buzz, Marty (center) and Steve Nelson celebrate 40 years in the feed mill business.
Photos by Dick Hagen
AG SCENE - 6 - MARCH 2 & 3, 2013
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MARCH 2 & 3, 2013 - 7 - AG SCENE
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By Dick Hagen
Contributing Reporter
Glencoe Advertiser
Procurement Manager Tom Beringer
points out that hundreds of milk trucks are
on the road every day across Minnesota
and Bongards’ does milk trades with other
co-ops, thus the constant routing of trucks
as needed to both Bongards’ Minnesota
plants. Today over 400 dairy producers
send milk to Bongards,’ the farthest, a dairy
farmer only 6 miles from Canada who ships
his milk to the Perham plant.
Why so much geography? Why not con-
tract locally with area dairy farmers? Like
any prospering business, the key criteria is
to “follow the money.”
“And milk swaps simply make it easier to
secure milk statewide,” said Beringer. And
that means on any given day milk on truck
A might be 10 cents cheaper than milk on
truck B because of milk availabilities at a
particular distribution plant.
“Also Bongards’ has been around a hun-
dred years (1908 to 2013, actually 105
years). We now have a plant in Perham
(since 2003). There are lots of dairy farms
in that area so good availability is assured,”
noted Beringer. And because of the high
quality standards of Bongards’ product,
dairy farmers selling to Bongards’ have to
meet the same high standards.
The company handles about 2.5 million
pounds of milk daily. That converts to
about 250,000 pounds of cheese. Cheese is
the only product of Bongards,’ but when
you’re making upwards of 30 different
kinds of cheese, you also have tons of whey
products for the food manufacturing indus-
try.
The Bongards’ Web site clearly spells out
that the secret to Bongards’ success is their
natural cheese. “By making our own natu-
ral cheese, we have total control over its
quality and consistency. It’s an important
point of difference, because most other
processed manufacturers simply buy their
natural cheese on the open market and are
forced to accept whatever quality is avail-
able that day.
“We’re the only processed cheese maker
in Minnesota,” said Beringer. Their whey
gets sold for human consumption as protein
in a variety of different products. At the
Perham plant, the whey powder is formu-
lated to produce Whey Protein Isolate,
Whey Protein Concentrate 80 percent and
Deproteinized Whey Powder.
At their recently acquired plant in Hum-
boldt, Tennessee, processed and shredded
cheese are the primary products, along with
processed and analog cheese blends.
So does the Bongard label travel nation-
wide? Beringer said that because Bongards’
does some private label, certain cheese
products logically do get marketed across
America and even overseas. The firm pro-
vides a Web site ordering process which
does in fact deliver products worldwide.
Is imported cheese a marketing chal-
lenge? Perhaps to some extent but
Beringer wonders if in fact these imports
are also marketing stimulants for Bon-
gards’ products. His point, “Cheese con-
sumption keeps increasing. So, as con-
sumers expand their cheese tastes, just
perhaps some of that new cheese experi-
ence includes a Bongards’ cheese.” Plus
he acknowledges that the global econo-
my of food products also very likely
moves Bongards’ cheese products into
destinations around the globe.
Bongards’ store is indeed a shopping
and eating delight. Fresh coffee and
warm rolls are made daily. Sandwiches
are also a daily special. Plus the store of-
fers homemade pizza, jellies, meats,
honey, jerky, wild rice, horseradish pick-
les, souvenirs and more. The store is also
a good showcase for other specialty
cheese products that may not even carry
the Bongards’ label. Yes, cheese sticks
are part of the cheeses offered for sale at
their store. So too are cheddar cheese
curds, a favorite of Highway 212 com-
muters into and out from the Twin Cities.
Check their Web site for online offerings.
Because dairy farming is a 24/7 business,
Bongards’ trucks are on the road seven days
a week. And the cheese making process is
also a 24/7 operation. Blizzards have yet to
shut down the Bongard plant. But years
back it was fairly common for milk trucks to
also be pushing a snow blade up front.
Currently Bongards,’ at all three plant lo-
cations, employs over 400 people. Their
Web site (www.bongards.com) reads: “In
1908 the doors of a farmer-owned co-op
opened in the little town of Bongards, MN.
The promise was simple: to produce the
freshest, most wholesome and flavorful
dairy products available.
“Today a lot of things are different than
they were back then. But one thing hasn’t
changed: We’ve stayed true to that original
promise. It’s a promise you’ll be able to
taste in each and every bit of each and
every variety of Bongards’ Creameries’
cheese.”
Cheese is big business for Bongards’
Procurement Manager Tom Beringer in front of a cheese-filled refridgerated case at the
Bongards’ store.
Photos by Dick Hagen
AG SCENE - 8 - MARCH 2 & 3, 2013
Brownton Co-op
Ag Center
Full Service Cooperative
for over 95 Years
Agronomy (320) 328-5211
Grain Division (320) 328-5502
toll-free (877) 328-5211 • www.browntoncoop.com
~ Locally owned & controlled with
NO outside investors ~
• Fertilizers – Dry & Liquid
• Crop Protection Products
• Custom Spreading – 4 Floaters
• NK & Croplan Seeds
• Custom Spraying –
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• Two-Certified Crop
Advisors
• Grain Marketing –
Call for Details
• Storage & Drying of Corn and Soybeans
• Full-Length Scale for Semis
• Trucking Available
Please stop in
or call to start
planning the
upcoming
spring planting
season.
From Seed in
Spring to Harvest
in Fall One
Stop will Take
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arkets...
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receive daily cash bids
via e-mail and/or text.
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www.jungclausimplement.com
520 Chandler Ave.
Glencoe, MN
320-864-5118
800-778-9854
Hours: Mon.-Fri. 8-7; Sat. 8-3
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to help you work in comfort and style, and the best in
service, so that your equipment gets up and running like
never before.
Our shelves are stocked with everything from overhaul
kits to filters, specially formulated lubricants, to your
spot-on paint color match. Choose quality AGCO
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Get Ready for Spring
SALE!
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Electric
• Farm • Residential •
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John Brust, Owner • Glencoe
320-864-1974
FREE ESTIMATES • Bonded & Insured
By Alyssa Schauer
Staff Writer
T
he Western Saddle Clubs Associ-
ation (WSCA), holds a royalty
contest each year to choose repre-
sentatives for the organization, which con-
sists of 230 clubs and more than 12,000 in-
dividuals. Stephanie Bonderson, of
Hutchinson, was awarded the Ms. Horse-
manship title, and earned a spot on the
WSCA court for 2012-13.
Bonderson said the WSCA consists of
saddle clubs throughout the entire state of
Minnesota and clubs in western Wisconsin,
and holds a royalty contest each year.
The royalty consists of a queen, a
princess, Ms. Horsemanship, Ms. Games
and Ms. Congeniality, and each candidate
must participate in a number of judged
areas, including riding, written tests, inter-
views and public speaking.
The chosen royalty represents the organ-
ization at various events and shows
throughout their reigning year.
“Running for WSCA queen was some-
thing I’ve wanted to do since forever. A
mentor of mine was queen in the ’90s, and
the contest was always in the back of my
mind. Last summer seemed to be the right
time, so I applied,” Bonderson said.
She is a member of the Little Crow Rid-
ers Saddle Club in McLeod County, and
particpates in horse shows and competi-
tions throughout the year.
“There are certain rules and regulations
for WSCA saddle clubs, and certified
WSCA judges are at most of the horse
shows, judging the riders and horses,” she
said.
At these horse shows, according to Bon-
derson, winners are chosen for specific
classes, and can move on to state competi-
tions and the championship horse show,
held in September.
“I have been around horses for close to
20 years. Most of my life, really, and I have
been showing horses at a lot of WSCA
shows for at least 15 years,” Bonderson
said.
“My mom, Joanne Bolland, lives in
rural Hutchinson, and that’s where I keep
my horses.
“I have two and a-half horses,” Bonder-
son laughed. “I co-own one with my
mom.”
Bonderson said her horses are quarter
horses, which is an American breed of
horse known for sprinting at short dis-
tances.
“Their names are Cookie, L.A. and
Cooper,” she said.
Bonderson said nearly every weekend in
the summer is booked with shows all over
the state.
“Mostly, we like to keep within an hour
distance of home. We have to get up so
early to head to the shows, not to mention
the fuel costs. But the horses travel pretty
well,” she said.
The shows she attends consist of some
county fairs, but mostly are saddle club
shows.
“WSCA certifies judges for the shows,
and saddle clubs have to hire these judges
to make them (the shows) official,’’ she said.
The application process for the WSCA
queen began last year, and took Bonderson
most of the summer to complete.
“I had to write an essay answering why I
would like to be WSCA queen. I submitted
an essay talking about family.
“This (showing horses) is a big thing for
my family. We are all together the night
before, getting ready, cleaning the horses,
packing bags and loading the trailer, just
getting ready to go.
“It really brought our family closer. My
mom, nephew, and I, and now my in-laws
and their kids are all involved. It’s very spe-
cial,” Bonderson said.
She added that WSCA is a “family” to
her as well.
“My maid-of-honor was a woman I met
at a horse show. I have made a lot of life-
long friends at these shows. You see these
people week to week, and essentially, you
become closer,” she said.
The royalty contest was a five-day event
of riding, interviews and public speaking at
the Minnesota state fairgrounds.
“Five whole days of judging! I was so
nervous,” Bonderson laughed.
She said nine contestants competed this
year and a banquet was held in August,
where she had to prepare a speech, present
it and answer impromptu questions.
“There were also ‘spy judges’ milling
around, watching you interact with people.
I still don’t know who they were,” she
laughed.
The 2012-13 court consists of Queen
Caitlyn Gensch of Vadnais Heights;
Princess Rachel Lusk of Hastings; Ms.
Horsemanship Bonderson; and Ms.
Games/Miss Congeniality Cassie Rose of
St. Croix Falls, Wis.
“We go to events and represent WSCA.
We were at EquiFest at the state fair-
grounds in October, and rang the bell for
the Salvation Army at the Mall of America.
“We were in the Winter Carnival parade
in St. Paul, and in September, of course,
we were at the WSCA Championship
Horse Show,” Bonderson said.
“My favorite experience has been meet-
ing new people, people I would have not
known otherwise. I know that will blow up
even more once it gets warmer and we go
to more horse shows this summer.
“I can’t wait!” Bonderson said.
For more information about WSCA, or
if interested in joining a local saddle club,
visit www.wsca.org.
Bonderson earns WSCA royalty title
Western Saddle Clubs Association’s 2012-13 royal court, from left to right, Cassie Rose
of St. Croix Falls, Wis., Ms. Games/Miss Congeniality; Caitlyn Gensch of Vadnais Heights,
Quenn; Rachel Lusk of Hastings, Princess; and Stephani Bonderson of Hutchinson, Ms.
Horsemanship.
Bonderson, and her horse, Cookie, adorned with crown, sash and a new saddle.
MARCH 2 & 3, 2013 - 9 - AG SCENE
A World Leader in Agribusiness
Producing Top Quality Canned & Frozen
Peas & Sweet Corn
A Community Leader & Supporter in the
Glencoe Area for over 60 years!
Seneca Foods, started in 1949, has been dedicated to providing
quality food products and service excellence to our customers.
We began by concentrating on one product, concord grape
juice, and carved out a successful niche in a growing market.
Today, the breadth of our operations encompasses a vast array
of fruit and vegetable products. We are involved in multiple as-
pects of agribusiness, from growing crops to manufacturing
and marketing the packaged goods. And we remain commit-
ted to delivering high quality products that our customers can
trust and depend on.
Seneca Foods is an Equal Opportunity and Affirmative Action Employer. All qualified applicants will receive
consideration for employment without regard to race, color, religion, sex, national origin, disability, or veteran status.
Seneca Foods Corporation
101 West 8th Street, Glencoe, MN 55336
320.864.3151
Main Human Resource 320.864.2316
Toll Free Human Resource 800.252.4875
Submitted photos
AG SCENE - 10 - MARCH 2 & 3, 2013
YES WE DO!
Testing and troubleshooting on your
equipment. We have over 400 starters &
alternators in stock or we provide
next day delivery. We can
keep you going through
harvest!
WE INSTALL
Starters, generators, alternators & interstate batteries. See us for
solutions to your starting and charging problems. With over 30 years
experience specializing in electrical systems, we have the knowledge
and equipment to find the problems and get you moving again, quickly.
1215 Hennepin Ave. 320-864-6200
Glencoe, MN toll free 1-877-237-3306
Quality Electrical Products Since 1981
O
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Lano Eq Of Norwood Inc Lano Eq Of Norwood Inc Lano Eq Of Norwood Inc
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1015 W. Hwy 212
Norwood, MN 55368
(952) 467-2181
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(952) 467-2181
Norwood, MN 55368
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MARCH 2 & 3, 2013 - 11 - AG SCENE
By Dick Hagcn, Contrihuting
Rcportcr, RenvIlle County RegIster
Unooubteoly the longest title explain-
ing a research project partially lunoeo by
Corn Checkoll Iunos was the oisplay
booth at recent Minnesota Ag Expo,
Mankato oealing with aooitional prooucts
lrom the ethanol relinery process. It reao:
Development 8 Commercialization ol
Biorelinery lor processing DDGs into Bio-
luel ano other Value Aooeo Frooucts.
Explaineo Dr. Favel Krasutsky, Direc-
tor, Chemical Extractives Frogram, Natu-
ral Resources Research Institute, Duluth,
We are researching the process ol sepa-
rating lrom Drieo Distillers Grains
,DDGs, some aooitional value aooeo
proouct priceo much higher than DDGs.
We`re talking prooucts like biooiesel, glyc-
erol ano aooitional ethanol. This isn`t a
new invention because we have oil in
DDG ano we can make 10 percent
biooiesel lrom DDGs.
Irom one ton ol DDGs we can ex-
tract 100 kilograms ol biooiesel. Irom the
aooitional soluble we can oo lurther ex-
traction ano get 10 percent ethanol. So
lrom DDGs we now have 20 percent aooi-
tional bioluel prooucts ano improve the
energy yielo lrom the crop by 20 percent.
This will make a big oillerence in bottom-
line prolits lor ethanol plants.¨
Krasutsky inoicateo ¯0 percent increas-
es in protein content ol the DDGs leeo-
stulls also happens in this aooitional relin-
ing process. So now the DDGs are !0 per-
cent protein versus the usual 2¯ to 29 per-
cent protein levels. He saio now you have
a leeostulls proouct much like soybean
meal in protein values ano the net result is
a lour times improvement in total cash
value ol the prooucts ol an ethanol plant.
How much lor the make over` costs to
an existing ethanol plant to get into this
aooitional relinery processing? Krasutsky
saio that it projects to a S2¯ to S30 million
to upgraoe a ¯¯ million gallon ethanol
plant. He also saio their economic mooel
by Dr. Doug Tillany, University ol Min-
nesota economist, is projecting a two to
two-ano-hall year return on investment
costs baseo on 20 to 30 percent improve-
ments in net cash llow. This new extrac-
tion process is alreaoy patenteo ano reaoy
to go accoroing to Krasutsky who is also
an Aojunct Frolessor, Department ol
Chemistry at the University ol Minnesota,
Duluth.
He was not at liberty to ioentily the
particular ethanol plant alreaoy into the
planning stages ol incorporating this relin-
ery technology. But he oio venture that
within two years a retrolitteo ethanol plant
will be in operation. He also suggesteo
that such a plant woulo perhaps be even
more attractive to investors il it serveo as a
processing center` lor three or lour close
by` ethanol plants which woulo provioe
their DDG leeostulls. Krasutsky can be
reacheo at 218-720-!33! or E-mail: pkra-
suts¸nrri.umn.eou.
Dick Hagcn is a frccIancc vritcr and
frcqucnt contrihutor to Land and othcr
agricuIturaI puhIications.
Tbere's money ln etbanol
AG SCENE - 12 - MARCH 2 & 3, 2013
Dr. Pfaff provides the most complete hearing care available.
Dr. Pfaff has been the hearing healthcare provider of choice in the
Glencoe/Hutchinson area for the past 21 years and always welcomes new patients.
• Experience
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Try any aid “risk free” for
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Hearing Care Specialists
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DOCTOR OF AUDIOLOGY • MINNESOTA LICENSED AUDIOLOGIST
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Dr. Pfaff is an expert with “difficult to fit” cases.
Call Today 320-864-5262
or Toll Free 1-888-931-9144
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(320)583-1961
Hector, MN
Midwest Agri-Insurance Inc. is your trusted, authorized John Deere crop insurance agency.
To discuss a customized risk management plan and crop insurance options, contact us
before March 15th.
Tim Kramer
Hector, MN
(320)583-1961
Hector, MN
Tim Kr
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By Alyssa Schauer
Staff Writer
W
hen one thinks about the Fu-
ture Farmers of America
(FFA) organization, they may
feel it is designed only for those who farm
and/or are interested in pursuing an agri-
cultural career.
This year, however, the Glencoe-Silver
Lake FFA chapter is working to reverse
that idea by offering a wealth of opportu-
nities for all kinds of students to get in-
volved.
The 2012-13 GSL FFA chapter is
under new leadership, and according to
the FFA officers, the club has seen a lot of
changes.
Last August, Becky Haddad, GSL High
School ag instructor, was hired as the FFA
adviser, and found many projects for
more group participation.
“We are doing a lot more activities this
year,” officer Laura Becker said.
“Yes, we have done so much already
and are planning more for the spring,” of-
ficer Samantha Lange added.
Officers Becker, Lange, Brooke Kacz-
marek, Kyle Polzin, Cortney Kressin and
Samantha Dahlke listed the activities the
GSL FFA have completed during the
school year, discussed upcoming FFA
events, and expressed that the club “is not
just for farm kids.”
“We are doing so many different activi-
ties that appeal to all interests,” Kressin
said.
So far, this year, the club has attended
the National FFA Convention in Indi-
anapolis in October; held its annual corn
drive to collect donations to support
Courage Camps; participated in fruit and
pizza sales to raise funds; and have
“adopted a highway” for clean-up.
“Coming up, we have the FFA Barn-
yard Day, where we will bring in all of our
animals for the public to come check out
FFA and meet cows, chickens and other
animals,” Lange said.
“And this year, we are planting a gar-
den that the seventh- and eighth-graders
will help us with,” Polzin said.
He added that this is the first year the
GSL FFA has a “junior high” chapter of
seventh- and eighth-grade students.
“It’s also the first year we have a chap-
ter for FFA alumni to get involved. They
are invited to help with the garden and to
help clean up 212, our adopted highway,
this spring,” Polzin added.
The GSL FFA chapter was awarded a
$2,500 grant as part of the “FFA: Food
For All” program to start up its garden.
“Our garden is intended to help raise
awareness for healthy eating, promote the
value of gardening as exercise, teach
smart environmental practices, and even
supply food to our middle-school and
high-school cafeterias,” Haddad said.
She added that the garden also will
teach “teamwork” and “work experience”
for the students and others involved.
“The garden is part of the organization,
‘Farmers Feeding the World.’ Essentially,
this is an initiative to promote the ag in-
dustry regarding sustainable solutions,
communiciating the importance of agri-
cultural, and providing hunger relief,”
Haddad said.
The FFA also offers opportunities in ca-
reer development in not only agricultural
fields, such as cattle and dairy farming,
but in fish and wildlife services, horticul-
ture, and the opportunity to meet with
legislators about the future of the farming
economy.
“My main focus of the GSL FFA chap-
ter is growth. As an adviser, I want to do
as much as possible to give the students an
opportunity to grow their work experi-
ence, and I want to make sure they have a
run of offerings as far as FFA opportuni-
ties go,” Haddad said.
In the coming spring, the group is also
looking forward to the Minnesota State
FFA Convention, the annual FFA ban-
quet and the “Ag Olympics.”
“The Ag Olympics is a day full of ag-re-
lated games and fun. There’s a hay bale
toss, ice cream relay, a ‘kiss the pig” op-
portunity, and even includes ‘cow pies’
made with chocolate pudding,” Haddad
said.
The GSL FFA is also participating in
“FFA Day at the Capitol,” where mem-
bers will have the chance to sit in on
House and Senate sessions and meet legis-
lators for a question-and-answer period.
“A big thing about FFA is that it isn’t
just for farmers. There’s something for
everbody. There’s speaking events in busi-
ness administration, governement, oppor-
tunities for writing and photography, and
much more,” Haddad said.
“Actually, there are a lot more city kids
than farm kids involved these days,”
Polzin added.
The GSL FFA chapter meets once a
month. For more information, visit
http://www.gslffa.org.
FFA is not just for ‘farm kids’ anymore
The GSL FFA group held it’s annual corn drive to raise money for Courage Camps.
Glencoe-Silver Lake school’s current FFA officers.
Submitted photos
MARCH 2 & 3, 2013 - 13 - AG SCENE
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AG SCENE - 14 - MARCH 2 & 3, 2013
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9
6
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A
G
Conduct Soil Samples to Identify Soybean Cyst Nematode Problems
It’s extremely important that soybean
growers find out if they have soybean cyst
nematode on their farms. North Dakota
State University plant pathologist Berlin
Nelson says the best way to do that is by
taking soil samples. “It's very important
that they know whether or not they have
it and to keep an eye on it so it doesn't
creep up and really cut their yields.
That's what happens to many growers we
talk to,” Nelson said, “we want to try to
emphasis that people get out there, sam-
ple their soils, find out if they have it and
then they can initiate their management
strategies.”
Economic Impact
• In 2011, the ethanol industry cre-
ated and supported more than
400, 000 j obs. Moving to E15
woul d create an additional
136,000 jobs.
• An April 2011 study by Iowa State
University found ethanol reduced
prices 25 cents-agallon over the
last decade — a consumer savings
of $34.5 billion annually.
• In 2011, the ethanol industry con-
tributed $42.4 billion to the na-
tion’s GDP and added $30 billion
to household income.
• By creating a steady market for
corn and other grains, ethanol
helps to lower federal farm pro-
gram costs.
Environmental Impact
• Grain ethanol decreases green-
house gas emissions by 59 percent
compared to gasoline.
• Cellulosic ethanol is expected to
reduce greenhouse gas emissions
by as much as 100 percent.
• In 2011, the production and use of
nearly 14 billion gallons of ethanol
in the U.S. reduced greenhouse
gas emissions by more than 21.9
million tons.
• New technologies are improving
efficiencies and allowing ethanol
biorefineries to make better use of
natural resources like water.
• A recent USDA report shows
ethanol is more energy efficient to
produce than conventional gaso-
line; for every one Btu put into
creating ethanol, there is a 2.3 Btu
return.
Energy Security
• The production of more than 13
billion gallons of ethanol in 2011
displaced the need for 485 million
barrels of oil.
• America now imports 60 percent
of its fuel. Switching to domestic
energy sources will reduce that
number, strengthening our nation-
al security and our economy.
• We spend more than $300 billion
a year — the equivalent of more
than $1,000 for every man,
women and child in this country
— for foreign oil.
• Every gallon of clean-burning
ethanol that we produce in this
country decreases the demand
for foreign oil and keeps U.S.
money in the U.S. economy,
where it can create U.S. jobs.
Food vs. fuel
• The U.S. ethanol industry uses just
3 percent of the global grain sup-
ply on a net basis.
• The real costs of putting food on
the shelf are transportation, pro-
cessing and packaging — all costs
driven by oil.
• One-third of every bushel of corn
used in ethanol production is re-
turned to the food chain in the
form of highly-valued, nutritious
animal feed — referred to as dis-
tillers grains.
• Academic, government and third
party research papers single out
rampant Wall Street speculators,
high oil prices and the high costs
of manufacturing, packaging and
transporting groceries as the major
drivers of increasing commodity
prices and grocery store bills.
MARCH 2 & 3, 2013 - 15 - AG SCENE
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Big oil and grocery giants’
claim against ethanol denied
Tuesday, Jan. 15, 2013, Grocery Manu-
facturers Association, American Fuel &
Petrochemical Manufacturers and others
petitioned for rehearing of an August 2012
pro-ethanol ruling from the Environmental
Protection Agency to rais the 10 percent
maximum ethanol/gasoline blend to a 15
percent maximum. These blends are com-
monly referred to as E10 and E15.
This ruling is proactively working with
the Renewable Fuel Standard, which re-
quires qualifying fuel refiners and im-
porters to annually increase the volume of
renewable fuel provided to consumers.
The Grocery Manufacturers Association
and American Fuel & Petrochemical Man-
ufacturers—which are comprosed of mem-
bers such as grocery and oil industry giants
General Mills, Nestlé, and Exxon Mobil—
claimed the increase would cause potential
automobile damage and increased food
costs. These claims were overturned by a
three judge panel, who found no cause to
reduce ethanol blends with the Renewable
Fuels Standard.
“Upholding this ruling denies the nega-
tive claims made by the Grocery Manufac-
turers Association and other petitioners,”
said Minnesota Farmers Union President
Doug Peterson, “This ruling also sets
precedence of judicial support of renew-
able fuels.”
An April 2011 study by Iowa State Uni-
versity found ethanol reduced prices 25
cents per gallon over the last decade, which
actually saved consumers $34.5 billion an-
nually.
Minnesota Farmers Union is a non-
profit membership-based organization
working to protect and enhance the
economic interests and quality of life
of family farmers and ranchers, as
well as rural communities.
ETHANOL
fast facts
AG SCENE - 16 - MARCH 2 & 3, 2013
Olivia
KGLB
Glencoe
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MARCH 2 & 3, 2013 - 17 - AG SCENE
By Rich Glennie
Managing Editor
Glencoe Advertiser
F
ahey Sales Auctioneers & Apprais-
ers have been a fixture throughout
the area for the past 65 years, but
it had several separate “store fronts with
offices,” as owner Jim Fahey described
them.
He jumped at the opportunity late last
year to purchase the former Midwest Ma-
chinery building on the east side of Glen-
coe after visiting the site and seeing its po-
tential.
Fahey transformed the building and
consolidated his store front offices in
Hutchinson, Belle Plaine and New Prague
into Fahey Sales Agency, Inc.’s main facil-
ity in Glencoe.
Fahey admitted the former John Deere
dealership building was in rough shape
when he forged the deal with the Teply
family, owners of the building.
But he changed little, other than make a
bright new front entrance, turning it into
office space with a large display floor and
a lounge area for visitors, and clean up the
long-vacant building.
“We didn’t change the floor plans of the
building,” Fahey said, other than to alter
the front appearance.
Parked on the floor last week were a
fully restored 1954 Chevrolet pickup truck
along with several old tractors and a car
with 8,000 actual miles. All will be part of
future auctions.
Behind the impressive initial entrance
into the 32,000-square-foot facility, locat-
ed along the frontage road (9th Street)
near Highway 212, is plenty of indoor
space that Fahey said has been lacking at
the other office sites.
Beside the new indoor space, there is a
large outdoor space for larger auction
items as well at the Glencoe site.
*****
The auctioneering, sales and appraisal
business was started by his father, Joe
Fahey Sr. in 1947 in Belle Plaine, and his
four sons joined him later.
In 1977, two more locations were added
in Hutchinson and New Prague.
The auction division of the business has
expanded and now has five full-time auc-
tioneers and appraisers licensed in Min-
nesota, three licensed in Wisconsin and
Missouri and a licensed Florida auction-
eer, plus a staff of 19 full- and part-time
auction support staff members.
Jim Fahey is the youngest of the broth-
ers. His current shareholding partners are
his wife, Linda, and sons, Joseph and
Christopher.
On its Web site, Fahey Sales Auction-
eers & Appraisers touts its unique blend of
auction, appraisal and real estate services
that “have helped hundreds of families,
organizations and businesses over the
years achieve their goals and objectives in
valuing or liquidating real and chattel as-
sets, and take pride in the fact that many
clients have repeatedly used their services
over the years.”
But the public’s perception of auctions
and auctioneers — standing on flatbed
trailers in farm yards and front yards of
homes — is changing, Fahey said.
Instead, online auctioning has “taken
off while the number of live auctions has
gone down.”
He said he also has backed away from
estate auctions in recent years.
Estate auctions were once considered
more of a social event, Fahey said, be-
cause neighbors attended and everyone
knew everyone else.
Now, Fahey said, many of the estate
auctions are initiated by younger family
members, who often do not live in the
area. Often they are cleaning out their
parents’ homes.
These younger family members hire
auction sales people, like Fahey, to handle
the auctions, while they head back home
after the funeral.
“EBay changed the whole approach,”
Fahey said. He said eBay engages buyers
and sellers in a different
way of online bidding.
“There is no service. No
face-to-face.
“Our online auctions
bring both together,”
Fahey said of simulcast-
ing. Often, Fahey said, it
involves bidders on site
with online bidders at
the same auction.
*****
While Glencoe City
Administrator Mark
Larson said the city did
little in getting Fahey’s
to relocate in Glencoe,
Fahey said city officials
“dove right in and were
extremely helpful” in
getting matters ad-
dressed, like the over-
sized Fahey sign featur-
ing its big “F” that can
be seen from nearby
Highway 212.
“Glencoe is a strategic
location,” Fahey said of
the access to Highway
212, Glencoe’s central
location for its office and
the close proximity to
the Twin Cities.
Besides the 12,000-square-foot show-
room, the facility has another 8,000-
square-foot area for commercial items
that are arranged into lots for upcoming
auctions.
Items in that area turn over every two
weeks, Fahey said. In the first seven weeks
in the facility, Fahey said these lots of
smaller auctioned items turned over three
times.
In the far back is another 12,000-
square-foot area for bigger, more com-
mercial items to go on auction, like a
whole kitchen for a Chinese restaurant. It
is the former maintenance area for the
former John Deere dealership.
Fahey said the items in that area turn
over about once a month.
The back facility is big enough to drive
a semi into one end to unload.
Fahey said his main job is to go out and
procure items for the auctions, and that
puts him on the road a lot.
“Building relationships” is a main goal,
Fahey said, and he attends numerous
trade shows around the country.
Fahey’s works with attorneys, banks, ac-
countants as well as families, he added.
The company also works with govern-
ment agencies like Minnesota Department
of Transportation and police departments
on seizures, as well as businesses like Toro
and Centerpoint Energy.
Several police repossessed vehicles are
stored on site ready to go on the auction
block.
Fahey’s gets a percentage of the sales.
Fahey said the Internet has allowed his
company to be more efficient, “but it is
more work” in photographing and docu-
menting the auction items for Internet
viewing.
“It takes a lot of people,” Fahey said,
“and we’re finding our feet.”
He said the aim is to build systems to
handle the volumes of items “so they
move through (the facility) efficiently and
quickly.”
There also is a shipping area in another
part of the facility that is handled by a
husband-and-wife team who come in
when needed, he said.
*****
Fahey predicted things will pick up even
more as “Baby Boomers” begin to retire
and downsize in coming years.
“We need to match the number (of
Baby Boomers) with buyers,” and to do
that requires the Internet. “This is how
auctions will look in the future.”
He said Fahey Sales Auctioneers & Ap-
praisers has been doing online real estate
auctions since 2010 “and we’d never go
back.”
Fahey Sales relocates its main office in Glencoe
Jim Fahey of Fahey’s Sales Auctioneers & Appraisers stood before one of the many lots
of items set for auction. Fahey’s relocated its main office and storage area to Glencoe.
The building was the former Midwest Machinery building in the east end of Glencoe,
just off Highway 212. The facility is 32,000 square feet in size.
While owner Jim Fahey said the new Glencoe facility’s basic floor plan was not altered, Fahey’s Sales Auctioneers
& Appraisers main office and storage building went through some cosmetic remodeling that enhanced the appear-
ance of the facility. Also, the big Fahey Sales sign can be clearly seen from Highway 212.
Photos by Rich Glennie
AG SCENE - 18 - MARCH 2 & 3, 2013
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MARCH 2 & 3, 2013 - 19 - AG SCENE
By Dick Hagcn, Contrihuting
Rcportcr, RenvIlle County RegIster
What`s oriving corn expansion these
oays? Frolitability. In lact Al Kluis, a high-
ly respecteo commooity broker comment-
eo at recent Ag Outlook Meeting, that cur-
rent ano projecteo market prices lor corn
ano soybeans are showing about S200 per
acre prolitability lor corn versus about
S100 per acre prolitability lor soybeans.
Ano that single marketing lactoio is a huge
challenge lor the Minnesota soybean in-
oustry.
Brian Greenslit, Morton area larmer
ano chairman ol the Minnesota Soybean
Research ano Fromotion Council which
was a major sponsor ol these Ag Outlook
meetings, responoeo, Yes, those numbers
are real. Il we can`t get more parity be-
tween those numbers we`re going to con-
tinue seeing a loss ol soybean acres. We`ve
got to ramp up proouction ano we`ve got
to expano more markets, especially lor soy-
bean meal.¨
He pointeo out that soybean oil alreaoy
has a gooo market in the looos ano inous-
trial arena ano also in the biooiesel luels
inoustry. But our primary challenge is
bringing more beans to market with con-
sistently higher yielos. The big push back
lrom Minnesota larmers, with gooo weath-
er they leel very conlioent that they can
grow 17¯ bushel corn but not that conli-
oent that they can grow ¯0 to o0 bushel
soybeans.¨
However, 100 plus bushel yielos have
been achieveo with soybeans so the genetic
potential is there maintains Greenslit.
The problem is ioentilying these variables
ano being able to capitalize on the most
signilicant ones. Il it`s strictly environmen-
tal, then we neeo Goo`s help but we know
there is triple oigit yielo availability in soy-
beans. The big question is how we make
that consistently ooable?¨ he asks.
Soybean Check Oll monies luno vari-
ous research projects at the University ol
Minnesota ano its outlying research sta-
tions. Greenslit points out that the Coun-
cil`s Research 8 Tech Transler committee
sits oown with University soybean re-
searchers ano oevelops a strategic plan on
what is consioereo the most important
venues lor Check Oll oollars. Yielo,
orought resistance, oisease resistance ano
pesticioe resistance are lour key areas that
this Committee presents to U ol MN re-
searchers.
The bottom line is we want to bring
more value back to the soybean larmer,¨
summeo up Greenslit. He noteo that the
soybean belt has expanoeo consioerably
into western high plains ano southern
Canaoa. An increoible example is that the
largest soybean growing county in the
Uniteo States is now Cass County, N.D. A
remarkable lact when you consioer that as
recent as 10 years ago there were virtually
zero acres ol soybeans in Cass County,
N.D.¨
He acknowleoges the slipping political
power` ol Minnesota soybean growers
both in St. Faul ano Washington D.C.
Check Oll Boaros oon`t get involveo in the
political arena but eoucational campaigns
to better connect agriculture ano larmers
with non-larmers is a vital mission ol the
Soybean Research ano Fromotion Coun-
cil. When political issues surlace that sat-
isly the only the agenoa ol environmental
groups I get oisturbeo. However, that`s
when our Council gets in gear with eouca-
tional ellorts to rectily these misleaoing
comments,¨ summeo up Greenslit.
Greenslit is also on the U.S. Iarm 8
Ranch Alliance Boaro which lunctions to
create a more positive unoerstanoing to
the U.S. population ol the role ol agricul-
ture. Teameo with both commooity ano
inoustry partners this new alliance is creat-
ing lrom the larm` messages which are
available through various websites serving
the American public. Check MSRC.org
lor more oetails on the several vioeos cur-
rently available.
Dick Hagcn is a frccIancc vritcr and
frcqucnt contrihutor to Land and othcr
agricuIturaI puhIications.
F.0. ßox 88
204 N. 9th $t.
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Car · Truck · Tractor
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On The Farm Service
Soybeans loslng out to corn?
AG SCENE - 20 - MARCH 2 & 3, 2013
By Dick Hagen
Contributing Reporter
Glencoe Advertiser
Apparently the medical suggestion that a
daily glass of wine is good for your health is
catching on with more and more people.
Per capita consumption of wine now ex-
ceeds beer! In fact data from Iowa State
University Extension Viticulturist Michael
White indicated wine consumption in
America last year went up 0.4 gallon per
person while beer drinkers reduced their
appetite by 1.18 gallons per person.
Over the past 10 years America’s drink-
ing habits have changed considerably. Cof-
fee, milk, beer, soft drinks, juice and power
drinks are all down. Yes, not surprising is
that bottled water has enjoyed the largest
gain in consumption. But wine, spirits and
tea consumption also have increased.
What does this mean to the Minnesota
grape growers industry?
“We have continual opportunity for
more vineyards and more wineries too,” de-
clared Ronald Barnes, president of the
Minnesota Grape Growers Association.
There are now an estimated 300 vineyards
in Minnesota.
However it is certainly not a get rich en-
terprise. Growers average about 65 cents
per pound with good vines averaging 8-10
pounds of grapes per vine. With about 600
vines per acre we’re talking about $3,500
gross revenue. But it takes four years to get
a new vineyard into full production. Invest-
ment costs for posts, trellising wires, an-
chors, etc., can easily run about $10,000.
Plus you have the seasonal labor costs of
three to five sprayings (fungicides and her-
bicides , mowing and trimming between the
8-foot wide rows, and the harvesting costs
(if you don’t have enough friends to assist
with this “chummy” event), plus delivery to
your winery. Perhaps it is that “labor of
love” thought that gets the fever started!
Interviewed at the Jan. 26 University of
Minnesota Wine Conference, UM Land-
scape Arboretum, Barnes said the quality of
wine being produced by several Minnesota
wineries competes vigorously with branded
wines from other parts of America.
“We’re still young as an industry, but we
do have some exceptional wineries. And
we’re seeing significant increases in grape
quality too, especially by the larger vine-
yard operators who realize quality is even
more important than quantity of produc-
tion.”
He noted the strong attendance by both
wine makers (oenologists) and vineyard en-
thusiasts at the Jan. 26 event. Plus even
more significant is the growing attendance
at the annual Minnesota Cold Climate
Conference which this year is Feb. 21-23,
Crown Plaza Hotel, downtown St. Paul.
“This event now draws grape growers
from across Minnesota plus several neigh-
boring states. We have speakers represent-
ing both the commercial world and various
universities. The trade show has vendors
from across America. So the enthusiasm
for grape farming and marketing Minneso-
ta-produced wines keeps ramping up.”
Minnesota now has 41 licensed wineries.
Six years ago there were only 16. Acres of
Minnesota land devoted to growing grapes
are estimated to now be about 900. So ob-
viously vineyards will never be a serious
competitor for Minnesota crop land.
You don’t need a piece of prime
corn/soybean soil. In fact lighter, silty clay
soils that are well drained and moderately
sloped to the south are preferred. Some-
what surprising, Minnesota’s richest corn,
soybean and sugar beet county, Renville
County, now has 12 vineyards!
Relating to the 2012 season, UM horti-
culturist Peter Hemstad said temperatures
dipped below zero only three times, so
there was zero winter damage to vines. And
that is a tribute to Hemstad and others who
have successfully developed winter hardy
varieties that thrive across the snow belt.
March was the warmest on record at the
university’s horticultural research center,
Highway 5, Waconia, with two March days
of 80 degree temps. The exceedingly warm
and early spring led to early bud break. A
widespread frost, April 11, did some dam-
age to primary buds, but secondary buds
lessened frost damage.
May, with 9.3 inches rain was the second
wettest at the research center. And these
excessive spring rains led to more black rot
than normal. Then July turned extremely
hot and August ushered in the driest 90
days on record, even including a light frost
on Sept. 18.
Sharing some harvest data from the 2012
season he pointed out that shriveling of
clusters was very prevalent in 2012:
BRIX Harvest Date Yield/vine
Frontenac 28.17 9/19 12.5 lbs.
Fron. Gris 28.5 9/11 8.2 lbs.
La Crescent 26.3 9/13 19.9 lbs.
Marquette 26.2 9/6 15.8 lbs.
Perhaps breeding table grapes will take
on added emphasis in 2013. Hemstad ad-
mits table grapes are an overlooked catego-
ry in viticulture work.
“However, with the growing interest in
locally produced items for farmer’s markets,
table grapes would be a good sales opportu-
nity. Seedless would be preferred, but we
also have a great table grape with seeds. I’m
putting table grapes closer to the front
burner of breeding objectives at the re-
search station,” Hemstad said.
Perhaps surprising is the fact that Iowa
now has 101, wineries which in 2012 pro-
duced 444,841 gallons of wine. In 2010,
Iowa had 95 wineries. The Iowa Depart-
ment of Economic Development has vigor-
ously assisted in the growth of the Iowa
wine industry. Wines are sold in food stores
in Iowa plus liquor establishments. Accord-
ing to White, over half of Iowa wine is sold
wholesale to retail outlets.
Who drinks the most wine? You’re right,
France leads the world in yearly per capita
wine consumption. French people average
8.14 liters per person (that’s 30.8 gallons!).
Some suggest that is why there is such a low
heart-attack frequency amongst French
people! France is also the No. 1 wine pro-
ducing country producing 4.8 million tons
in 2010. The United States ranks fourth
with 2.3 million tons currently.
The Minnesota Grape Growers Associa-
tion was established in 1976 to further the
art and science of growing grapes in cold
climates. The association sponsors work-
shops, tours, tasting of locally produced
wines plus the big annual conference on
cold climate viticulture.
For a listing of Minnesota’s 41 commer-
cial wineries go to: www.Minnesota Grape
Growers Association. For membership in-
formation contact Cheri Anderson, 433
West 3rd St. #1, Red Wing, MN 55066.
Or email: cheri.anderson@mngrapes.org.
The MCGA’s Book, “Growing Grapes in
Minnesota” is an excellent beginners' man-
ual on starting a vineyard. Cost is $15 plus
$5 for S/H/Tax. You can order online, via
email, or by sending a check to the contact
information above. If interested in growing
grapes, the following nurseries can provide
rootstocks of various varieties:
· Falconer Vineyard and Nursery, Red
Wing, MN 651-388-8849
· Great River Vineyard and Nursery,
Lake City, MN 877-345-3531
· Winterhaven Vineyard and Nursery,
Janesville, MN 507-234-5469
From Wikipedia, this footnote: Wine
has a rich history dating back thousands of years,
with the earliest known production occurring around
6000 BC in Georgia. It first appeared in the
Balkans about 4500 BC and was very common in
ancient Greece, Thrace and Rome. Wine has also
played an important role in religion throughout his-
tory. The Greek god Dionysus and the Roman
equivalent, Bacchus, represented wine. The drink is
also used in Christian Eucharist ceremonies and the
Jewish Kiddush.
Grape growing fever continues
Photo by Dick Hagen
Metro Creative Graphics
Ron Barnes, Chairman, Minnesota Grape Growers Associaiton
MARCH 2 & 3, 2013 - 21 - AG SCENE
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AG SCENE - 22 - MARCH 2 & 3, 2013
MARCH 2 & 3, 2013 - 23 - AG SCENE
Tbls palntlng bangs ln tbe Henslln Auctlons, |nc. ottlce ln 8lro |slano ano sbows wbat bas maoe tbe company, ano
owner LaDon Henlsln so successtul ÷ bls tamlly ano trlenos. Tbelr belp ano support were lnstrumental ln get-
tlng LaDon lnoucteo ln tbe Mlnnesota State Auctlon Assoclatlon's Hall ot Fame. Plctureo ln tbe toregrouno are
Marvln Tblelke, Frank Roerlng, 8rao Dallmann, Allen Henslln, Annette Henslln, LaDon, Fay Klorowskl ano Dawn
8arber. Among tbe crowo ln tbe backgrouno are several long-tlme customers wbo LaDon wanteo aooeo to tbe
plcture.
Art by Donna Larkln
A ball ot tame career maoe posslble by
tbe belp ot otbers
By ShcIhy Lindrud
Editor, RenvIlle County RegIster
A lew years ago local artist Donna
Larkin painteo a portrait ol an auction,
put on by Henslin Auctions, Inc. Large
pieces ol larm equipment lill the back-
grouno, but it is the people in the lore-
grouno that really tell the story. They are
the Henslin lamily some born into the
lamily ano others who have earneo their
place in the heart ol owner LaDon
Henslin through oecaoes ol haro work
ano loyality.
That is why LaDon reluses to take
complete creoit lor the work that put him
into the Minnesota State Auction Associa-
tion`s ,MSAA, Hall ol Iame. Il he oion`t
have the stall or lamily he has, none ol it
woulo have been possible.
I look at this awaro as not my
awaro,¨ explaineo LaDon. Insteao it be-
longs to all the stall, lrienos, lamily ano
people who have been so gooo to LaDon
ano his business over the years.
LaDon was inoucteo into the Hall ol
Iame on Jan. 19, ouring the MSAA`s an-
Henslln
Turn to page
Henslin
Turn to page 24
AG SCENE - 24 - MARCH 2 & 3, 2013
nual conlerence ano show. The organiza-
tion usually tries to keep the honor a se-
cret.
They were unable to keep it a secret
lrom me,¨ LaDon saio, which he is grate-
lul lor because he was able to have his
stall at the event in St. Clouo.
Inouctees are chosen by a Hall ol
Iame Committee ano they look at a per-
son`s career ano how they`ve helpeo out
the MSAA.
How have you serveo the auction pro-
lession,¨ LaDon explaineo.
LaDon's career
LaDon`s long career in auctioneering
began in the 1970s, when he oecioeo he
wanteo to oo something that oion`t put
him insioe a lactory.
I starteo on my own,¨ recalleo
LaDon.
In lact, lor the lirst oecaoe LaDon hao
been on the lookout lor a oillerent career.
Luckily I oion`t lino anything,¨ saio
LaDon.
He linally went to auction school in
March 1981. He eventually graouateo
lrom three oillerent schools, ano he is now
a part-time instructor at Continential Auc-
tion School.
Henslin Auctions has been in business
lor over 30 years in one shape or another.
LaDon starteo on his own, but lor 20
years he ano partner Lelty Norling oper-
ateo Norling Henslin Auctions. Then sev-
eral years ago LaDon was again on his
own ano the current Henslin Auctions,
Inc. was born.
The business has always been baseo in
Biro Islano, LaDon`s lamily moveo to
town in the early 19o0s.
Biro Islano has been home lor a long
time,¨ LaDon saio.
His lirst auctions were helo at the lair-
grounos in Biro Islano, in the sheep builo-
ing to be exact.
That is where we learneo our busi-
ness,¨ recalleo LaDon. We starteo at the
bottom.¨
Tooay, Henslin Auctions holos major
auctions at both the lairgrounos ano in
Bullalo Lake, with towering combines ano
tractors lineo up ano oown the grounos.
Henslin specializes in real estate, inoustrial
ano larm equipment auctions. The com-
pany also travels, holoing auctions all over
the country ano even overseas.
When not putting on auctions, LaDon
has also been quite active in the MSAA
ano the National Auction Association
,NAA,. Over the years LaDon has serveo
on the MSAA Boaro ol Directors ano is a
Fast-Fresioent. He was also nameo a
Champion Auctioneer in 199! ano in
1991 his company won the Best ol Show
Awaro ano his company heaoquarters is
lull ol aooitional awaros he ano his stall
have earneo.
LaDon saio taking part in organiza-
tions like MSAA ano NAA, ano going to
the shows ano conlerences, allows him to
stay on top ol all the new ioeas ano pro-
grams he might just be able to use in his
own business.
Tecbnology ano cbanges to tbe pro-
tesslon
Over the years many things in the auc-
tion business have changeo, but nothing
has brought more expansion than technol-
ogy. It starteo with the lax machine
LaDon hao one belore even the local
newspaper ano continues tooay with the
internet.
We`ve useo it to enhance our busi-
Henslln Contlnueo trom page
Many on tbe Henslln Auctlons team was able to be at tbe Hall ot Fame
ceremony ln St. Clouo. Plctureo (l-r): Mark Molenaar, Faye Klorowskl,
Allen Henslln, LaDon Henslln, Annette Henslln, 8rao Dallmann ano Frank
Roerlng.
Submltteo pboto
Henslln
Turn to page
Henslin
Turn to page 25
Henslin Continued from page 23
MARCH 2 & 3, 2013 - 25 - AG SCENE
By Dick Hagcn, Contrihuting
Rcportcr, RenvIlle County RegIster
There`s nothing cheap about builoing
anymore but this project turneo out won-
oerlully. We oresseo up the shop ano ollice
area with some winoow shutter trim. The
steel sioing color matches the rest ol our
larmsteao. Structural Builoing out ol
Becker was the contractor ano they oio a
great job,¨ relates Bob Mehlhouse as he
talks about the new oo` x o0` larm shop on
his Olivia area larm. That July 1, 2011
wino storm suooenly put a new shop high
on his agenoa¦
His new shop has a six-inch concrete
lloor with a thermal in-lloor heating sys-
tem. Ceiling height is 20` ceiling with 1!
high-intensity tubular lighting lixtures plus
six ceiling lans. Two lloor orains are posi-
tioneo in the center ol the shop lloor.
But the big attention getter ol this
structure is a !0` x 18` Schweiss bilolo lit-
teo with lour thermal-pane winoows ano
appropriately oresseo up with winoow
trim matching the trim ol the other 12
winoows in this super structure. That 18`
vertical opening is big enough to accom-
A new sbop tor 8ob
Meblbouse
Submltteo pboto
8ob Meblbouse.
Meblbouse
Turn to page
ness,¨ LaDon saio.
Live online biooing allows people to
take part in auctions, no matter where
they may be. The auction itsell might be
in Biro Islano, but the winning bio coulo
come lrom Ilorioa.
That really has helpeo us out,¨ saio
LaDon.
The internet has also pusheo auction-
eers to work even haroer to put on a gooo
event, incluoing taking better photos ol
the prooucts ano being more oescriptive.
LaDon oescribes it like putting on any big
event, a weooing or banquet, because
there is so much prep work involveo.
You`ve got to have a lot ol help,¨ saio
LaDon, like clerks, cashiers ano computer
people.
Tbe lmportance ot trlenos ano tamlly
You also neeo a very loyal customer
base, something LaDon is very thanklul
lor. So much so he hao several long-time
customers painteo into the Larkin por-
trait, that hangs at the Henslin ollices on
Main Street in Biro Islano.
The only reason we`ve been so suc-
cesslul is people are so gooo to us,¨
LaDon saio. We`ve just been so lortu-
nate.¨
Along with his commercial auctions,
LaDon also supports many lunoraising
auctions each year, lrom youth to church
groups to Fheasants Iorever. His company
recently took part in the Mike Bruns ben-
elit.
That was a huge benelit,¨ remem-
bereo LaDon, ano just shows how great it
is to live in communities like the ones in
Renville County.
LaDon looks at the lunoraising auc-
tions ano benelits as a way to give back to
the people that have given so much to him
ano his lamily.
Henslin Auctions is oelinitely a lamily
allair, with LaDon`s wile Annette, her sis-
ter Iaye Kiorowski ano LaDon`s mother,
Doris Henslin Ioesch working sioe-by-sioe
with LaDon ano son Allen, who joineo
the business alter college.
He took it to a whole new level,¨ saio
LaDon.
Along with the his lamily, LaDon is
also gratelul lor the help ol his other long-
time employees: Irank Roering, Brao
Dallmann, Dawn Barber, Barry Westholl,
Kelly O`Neil, Mark Molennar, Marvin
Sweet Fotato¨ Thielke ano John Henslin.
The team makes everything possible.¨
Henslln Contlnueo trom page
Mehlhouse
Turn to page 26
Henslin Continued from page 24
AG SCENE - 26 - MARCH 2 & 3, 2013
Meblbouse Contlnueo trom page
mooate his big combine.
Why the bilolo ooor? I neeoeo a
strong ooor because this is a big opening. I
have a Schweiss bilolo in my oloer sheo
which was built in 198¯ ano it`s only
neeoeo two service calls by Schweiss in all
those years. So in my opinion there`s lots
ol reliability in a Schweiss ooor,¨ saio
Mehlhouse.
Flus weather is not an issue with a bi-
lolo which literally
lolos up` as the ooor
opens. Slioer ooors
teno to accumulate
snow, ice ano oebris
in the slioing track.
Vehicles parkeo out
lront can be an issue
with a hyoraulic
ooor, especially a
ooor this big. So too
are big snoworilts
against the lront ol
the ooor.
You want quick-
working ooors when
you have a heateo
shop. I mentioneo
that concern to Mike
Schweiss. He saio I`ll
take care ol you. Ano
so he oio. This !0`
ooor opens ano clos-
es in only about !0
seconos,¨ noteo
Mehlhouse.
Iitteo with special
insulation ,R2o
value, ano metal skin
both external ano in-
ternal, this bilolo
ooor weighs about
!,000-lbs. To accom-
mooate this heavy
loao the contractor
built stronger trusses into the lront eno ol
the shop. This beautilul structure also lea-
tures rool-top cupolas which aoo to the
overall character ol this larm shop which
also incluoes a 2!` x !0` ollice complex on
the east wall. A single-stall garage occu-
pies the north portion, the remaining ol-
lice portion leatures special lighting lix-
tures, toilet area with sink ano shower, in-
lloor heating ano oecorator tiles.
It`s not exactly Bob`s man cave` but it`s
a great hangout lor son Jacob ano his mu-
sical equipment. Jacob provioes the bass
guiter lor a popular local quartet with the
moniker Staineo Glass.¨
Dick Hagcn is a frccIancc vritcr and
frcqucnt contrihutor to and othcr
agricuIturaI puhIications.
Submltteo pboto
A buge Scbwelss bl-tolo ooor ls just one ot tbe great tblngs ln Meblbouse's new sbeo.
Mehlhouse Continued from page 25
MARCH 2 & 3, 2013 - 27 - AG SCENE
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When I began as a
farm broadcaster over
30 years ago, Minneso-
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sons why. Less ground is being used for
hay. Not that many years ago, we were
much more diversified in the state, with
many farmers having both grain and
livestock. We needed pasture to graze
the cattle and land to produce hay. Most
hilly areas of the state didn’t grow much
else because of runoff problems, and the
abundance of livestock.
As the livestock numbers shrunk, and
more and more farmers became special-
ized, we saw land converted to corn and
soybeans. That conversion has meant
more and more acres, and we continue to
expand.
On top of that, the
available hybrids and
varieties of corn and
soybeans can be grown
in more northern re-
gions, and that has in-
creased our ability to
grow corn and soy-
beans. And the seed
has become more toler-
ant of dry and wet
weather, again, helping
northern farmers.
And finally, we know more about how
to grow crops on land that used to be
considered marginal. Soil drainage, fer-
tility rates, how to leave residue, how to
avoid compaction have all led to more
and more bushels in Minnesota. And it’s
interesting; the Fargo-Moorhead area is
the fastest growing soybean area in the
country!
So, Minnesota, you’re no longer a
fringe ag state! You are a main-line pro-
ducer of corn, soybeans, and wheat. In
addition to sugar beets, vegetable crops,
sweet corn, cattle, hogs and dairy. Min-
nesota is a state growing in production,
and one we can be proud to live in.
Minnesota a growing
agricultural state
Lynn Ketelsen
Lynn Ketelson is the Farm Director
for Linder Farm Network.
STATE RANKINGS: Minnesota’s Rank Among States 1/
Item
Cash Receipts, 2011 2/
Total
Livestock & Livestock Products
Crops
Crop Production, 2011
Corn
Soybeans
All Wheat
Spring Wheat
Oats
Barley 3/
All Sunflowers
Dry Edible Beans
All Hay
All Potatoes
Sugarbeets
Flaxseed
Canola
Sweet Corn for Processing
Green Peas for Processing
1 2 3 4 5 6 7 8 9 10
CA IA TX NE IL MN KS IN WI NC
TX CA IA NE KS WI MN NC OK GA
CA IA IL NE MN IN KS TX FL OH
IA IL NE MN IN SD WI OH KS MO
IA IL MN NE IN OH MO SD AR ND
KS ND MT WA ID SD CO OR MN OK
ND MT MN ID WA SD OR CO UT NV
WI MN ND SD IA PA TX OH MI NY
ID MT ND WA AZ CO VA WY CA PA
SD ND KS CO NE TX MN CA OK
ND MI MN NE ID WA CA WY CO NM
SD CA MO NE MT MN KY ND ID TX
ID WA WI OR CO ND MN MI CA ME
MN ID ND MI NE MT CA WY CO OR
ND MT SD MN
ND OK MT MN ID WA OR
WA MN WI
WA WI MN OR DE
AG SCENE - 28 - MARCH 2 & 3, 2013
By Dick Hagcn, Contrihuting
Rcportcr, RenvIlle County RegIster
Yes, K8S Millwrights Inc., is enjoying
the rampeo up business lile ol Bullalo
Lake. In lact they`ve been enjoying the
buzz lor 1o years now ano some Bullalo
Lake main streeters` say K8S is the
biggest success story in the bunole.
Sixteen years ago about all we oio was
grain elevator repair work. Now we`re big
into larm elevators, bin ano hanoling
equipment plus a lew more projects that
come along,¨ says a mooest Brao Krum-
rey, the !!-year olo owner ol K8S. Chao
Schmalz was an original partner thus the
K8S hanole ano Schmalz is now back
with the lirm.
K8S is a start-to-linish operation with
enough ol the right equipment incluoing a
90-ton crane plus 70-ton, !0-ton ano 2o-
ton cranes. That lineup also incluoes oozer
ano backhoe equipment to oo general ex-
cavation, builoing site removal, water line
ano intake repair, even lence line removal.
Ano with this much talent ano equip-
ment the work territory expanos. Original-
ly comlortable ooing projects within a
100-mile raoius ol Bullalo Lake, K8S
now ooes work in Washington State,
North Dakota, South Dakota, ano Iowa.
Yes, thanks to a two-year rush ol new
money` in agriculture, larm bins ano total
grain hanoling setups are now big business
with K8S. Schmalz saio 1¯0,000 bushel
bins are now perhaps the average size in
new construction. Last spring two,
¯00,000 bushel larm` bins with complete
grain hanoling lacilities were installeo by
the lirm.
We start lrom the oesign phase to the
oirt moving to the construction phase. The
only thing we oon`t yet hanole is the elec-
trical work,¨ noteo Krumrey. Tooay K8S
has construction ano´or repair crews on
the roao virtually every week on a year-
rouno basis.
He`s nothing but positive about the lu-
ture simply saying, Every year since we
starteo we`ve grown. Il there isn`t a gooo
8uttalo Lake ls buzzlng
Pboto courtesy ot tbe Renvllle County HRA/LDA
8uttalo Lake bas been enjoylng some proouctlve tlmes.
8uttalo Lake
Turn to page
Buffalo Lake
Turn to page 29
MARCH 2 & 3, 2013 - 29 - AG SCENE
corn price, larmers builo to store it lor a
better price. Il the price is there, they sell
the corn ano then builo another bin, or a
new leg, or a laster ano easier oump site.
Ano il they can`t builo something new,
they lix what they have. That`s just the
way money works in agriculture.¨
The 2011 year was a recoro lor K8S,
partly because ol the extensive wino-
storm oamage ol July 1, 2011. However
2012 was another excellent year thanklul-
ly nurseo along with better than expecteo
yielos throughout the traoe territory` ol
K8S.
Even Henslin Auctions, a long-time
Biro Islano auction company now is ooing
business in Bullalo Lake. In lact they`ve
renteo a 10-acre property lrom Krumrey
that useo to be a orive-in theater location
on Hwy 212, oirectly across lrom Triple J
Iarms, the new beel processing lacility at
Bullalo Lake.
Henslin says it`s a perlect location lor
their consignment sales ol large larm
equipment with great visibility, plenty ol
parking ano easy highway access.
The primary reason we oecioeo on
this new location lor our business is simply
because there is now so much going on in
Bullalo Lake. The reopening ano expan-
sion ol the meat plant, the builoing ol a
new 100-car terminal at the elevator ano
the reopening ano expansion ol the
ethanol plant has maoe this small commu-
nity a beehive ol activity. Ano when
you`re in the auction business activity is
what we thrive on,¨ saio Allen Henslin.
Summeo up Joyce Nyhus, Bullalo Lake
Mayor ano also lull-time teacher at Bulla-
lo Lake´Hector public schools, We`re
thrilleo with the new business lile in our
community. You sense new optimism on
Main Street. Its super gooo lor our area
schools because it means more employ-
ment ano more lamilies.¨
Dick Hagcn is a frccIancc vritcr and
frcqucnt contrihutor to and othcr
agricuIturaI puhIications.
8uttalo Lake Contlnueo trom page
Buffalo Lake Continued from page 28
AG SCENE - 30 - MARCH 2 & 3, 2013
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AG SCENE - 32 - MARCH 2 & 3, 2013
By Dick Hagen
Contributing Reporter
Glencoe Advertiser
Most Ag conversations eventually get
around to the inevitable question, “How
long is this golden era going to last?” A
great person to ask is Dr. David Kohl, pro-
fessor emeritus of agricultural economics at
Virginia Tech University. The emeritus
label means you’ve got rank and you’ve
been around a long time.
When you’re talking “been around” with
Kohl, that literally means around the
world. He’s done about 6,000 workshops.
His travel log reads more than 8 million
miles. His mind travels at warp speed. And
he’s a keen student of the “super cycles” of
agriculture.
Speaking at the January Minnesota Pork
Congress, Kohl said the last three super cy-
cles of the past century involved metals,
agriculture and more recently oil, and were
1915-1917, 1950-57, 1973-74 and the cur-
rent cycle, which is now in its 10th year and
is by far the longest.
He’s also a student of history. He noted
that each of the past super cycles was fol-
lowed by crashes of varying degrees. And
he does predict land prices will start stum-
bling when interest rates go back up and
the jobless rate decreases to about 6.5 per-
cent.
Kohl said five events have created the
current super cycle. Leading the parade is
the growth of the economies of some key
emerging countries; the growth of the bio-
fuels industry; the low value of the U.S. dol-
lar; the disappointing results in stock market
investments so people with money have
turned to land; and the big one is continu-
ing low interest rates.
“But what I’m really watching is the
growth of these emerging nations. We have
the BRICS (Brazil, Russia, India, China,
and South Africa) and now South Korea,
Indonesia, Mexico and Turkey. They are
slowing down economically but not as
much as we expected,” said Kohl, noting
that the new leader of China is now at-
tempting to boost the economy of his coun-
try.
“Two things to watch: interest rates and
the growth of these emerging countries,”
said Kohl. Farmers need to be “super pro-
ducers” and keep improving their manage-
ment skills, he said.
So which bubble, grain or livestock, will
likely feel the most hurt? He acknowledged
that the livestock sector is already experi-
encing some pain. “But some strange hap-
penings in this current cycle. In livestock,
we’re seeing these short profit windows with
extended downturns. On the grain sector,
we’re seeing extended profitability with
minimum corrections. So if we do see a
slowdown in these emerging nations and in-
terest rates bump up, it will likely impact
the grain industry more than the livestock
industry,” Kohl said.
He noted volatility in agriculture is more
extreme now. As a result, there are more
opportunities to succeed and also to fail.
“In this global economy of agriculture
today, it’s a high reward and high failure
scenario,” he said.
Using “football lingo,” Kohl talks of the
“hut principle” and resulting management
flaws for many farmers. He said a farmer
hears all the things he should be doing, but
he doesn’t take the “hut;” he doesn’t take
any action.
But bad things can and do happen, often
beyond the actions of a single farmer. He
used as an example a possible Mideast war
that would send gas prices skyrocketing, or
a cyber attack that would hit the United
States, knocking out electricity for weeks.
And this is why Kohl suggests prepare for
those “black swans” by keeping more work-
ing capital and liquidity in your farming
budget. If you are a livestock producer, a
backup generator might be wise.
Kohl and his family operate a 250-cow
dairy which bottles 54,000 gallons of milk a
month and sells it to 90 stores. Three years
ago the power went out. They had a back-
up generator. They turned a disaster into a
remarkable success story. Their dairy busi-
ness also makes ice cream. Kohl said they
decided to do an ice cream giveaway at the
farm. Local townspeople responded with
huge donations to help ease the financial
situation.
Is global warming becoming an econom-
ic issue for agriculture? “Mother Nature
we’ve got to carefully watch for the next six
months to a year. If we have a back-to-
back drought, it will be a paradigm shifter
for our livestock industry. The reality is
that we could see $3 to $4 corn next fall or
we could see
$10 to $12 corn. Washington D.C. may
think they control the economy of America
but Mother Nature is really in control,”
commented Kohl.
Noting the growing interest in locally
produced/locally marketed food he credits
“food with a face” as the reason why.
“Consumers want to know who’s behind
that product,” said Kohl. The Kohl Dairy
operation, now in its 28th year, continues
very successfully. Though not an organic
farming program, they do promote the lo-
cally grown concept. But he cautions that
the market can get oversaturated. “When
farmers ask me about going local and natu-
ral, I advise them to do a careful business
and marketing plan. They will find that it’s
a very complex business but there’s no
doubt this is a growing trend.”
Ten years down the road, what does
Kohl see for American agriculture? Surpris-
ingly not much decrease in farm numbers.
Declared Kohl, “We’re about 2.3 million
farms today. I still see 2 million farms 10
years from now because of rapidly increas-
ing ‘hobby farms.’ I see a growing segment
of larger, more complex corporate farms,
mostly family units. I also see the local, nat-
ural organic numbers increasing, especially
around the cities. But we will see declining
rural populations. Of America’s 320 mil-
lion people, only 60 million live in rural
America. Those dynamics will change as
we get out there to 2025-2030.
“Perhaps more significant is the growing
population of sophisticated, life-long learn-
ers in agriculture. In my audiences today, I
see people of all ages who are very passion-
ate about agriculture. Also often up to half
my audience is females. In some areas of
America, I’m seeing more minorities in my
audience.
“Also my farm audience is becoming
worldlier. They travel. They interact with
cultures in other countries. So it’s not about
farm numbers; it’s about the people behind
those numbers. The intellectual appetite of
farmers keeps expanding. This generation
realizes that things outside the United
States globally impact their business.”
Kohl noted that 270,000 farms generate
80 percent of U.S. production but carry 60
percent of the debt. He refers to these “big
guys” as the “alpha dog producers” and
these are the guys regulators and bankers
pay particular attention to. “It’s not the bad
years that get you in trouble, it’s the good
years. I often see producers trying to grow
their way into profits before getting effi-
cient. Getting efficient should come first,”
he advised.
And is Kohl still excited about American
agriculture? “Absolutely. I wish I could live
to the year 3000. This audience here at the
Minnesota Pork Expo is a good example.
They were totally engaged. Plus you see
the calluses on my hands. I still love getting
out on my farm and working up a sweat.”
Will agriculture ramp up to feed 9 billion
people by 2050? “Absolutely. Technology
keeps exploding around the world. Also
we’ll see better systems that interconnect
production with processing with distribu-
tion and with marketing. Right now we
have sufficient food but about one-third of
the worlds food never gets to the plate.
However, I can see food shortages created
by unexpected events be that weather, gov-
ernments, and hostile actions,” summed up
Kohl.
Meanwhile, the Federal Reserve is pre-
dicting that U.S. farm income will decline
in 2013, but the forecast largely depends on
how long the drought continues. The Fed-
eral Reserve said the current debt-to-asset
ratio for farmers in 11.7 percent. That’s
much better than the 20 percent ratio of the
1970s.
While Kohl is frustrated with Congress
and politicians in general, he thinks the
U.S. economy is on a comeback. During his
travels he talks with shoeshine people in air-
ports, taxi cab drivers and overland truck-
ers. “These folks can predict the economy
six months ahead of our Washington wiz-
ards,” chuckled Kohl.
Ag’s ‘super cycle’ hitting a bump?
Ag volatility the new normal?
By Jeff Caldwell
Multimedia Editor
Agriculture.com and
Successful Farming magazine
Tight grain supplies and high price
volatility (for both crops and the inputs re-
quired to grow them) have paced the corn
and soybean business in the last few years,
begging some to wonder whether those
conditions comprise a “new normal” in the
industry.
One agribusiness leader says that’s ex-
actly the case; in fact, it calls for farmers to
adapt to a new world of agribusiness in
which tighter supply margins and volatile
pricing will be the norm.
“Thinking about my lifetime, I remem-
ber the last big ag boom in the 1970s. I re-
member how great it was then, then how
scary it was going from tremendously high
land prices to the 1980s with farmers going
out of business,” says Mary Shelman, di-
rector of the Harvard Business School
Agribusiness Program. “Is this economical-
ly profitable time one of those momentary
things that’s going to go away, or is it a
long-term trend? I’m quite convinced this
is very much a fundamental change in the
growth cycle of this industry not just in
U.S. but on global basis.”
Shelman, who grew up the daughter of a
machinery and implement dealer in Ken-
tucky, says the biggest driver of this “new
normal” will be the demand for grain in
developing parts of the world; that devel-
opment is likely growing into a new market
fundamental that won’t go away.
“In particular, we see the growing de-
mand coming in new markets, particularly
China, India, Brazil, and these are funda-
mental changes and they’re not going to go
away,” says Shelman, who’s joining ag
leaders at the Global Agribusiness Summit
on March 13 in Decatur, Illinois. “That re-
ally pushes up the demand side in a time
when productivity gains haven’t been
made as fast as changes in demand.”
Part of keeping up with the growth in
demand on the horizon, Shelman adds,
will be the ability to roll with increasing
volatility in all ag market sectors, whether
in grain prices netted by farmers or those
paid for crop inputs.
“In the future – 5, 10 or 40 years out –
I’m very optimistic, but there are going to
be challenges,” she says. “Volatility is
going to be something we’ll live with and
we need to think about new risk manage-
ment tools.”
MARCH 2 & 3, 2013 - 33 - AG SCENE
By Dick Hagcn, Contrihuting
Rcportcr, RenvIlle County RegIster
Ferhaps it was inevitable. Somebooy is
now stealing hay¦ With small bales now in
the S1¯ range ano big bales S1¯0 ano up.
Truck-mounteo hyoraulic hoists on 18-
wheelers are ramping up truck loaos ol
baleo hay rather lrequently in Calilornia,
Texas ano a lew other areas where orought
virtually eliminateo the hay harvest` lor
livestock prooucers.
Donalo Kieller, Executive Director, Na-
tional Hay Association ,ano a lormer
Olivia resioent,, reports hay thievery is es-
pecially rampant in the agriculturally rich
Calilornia Imperial Valley. Frooucers who
stack their hay bales along roaosioes make
it especially easy lor these alter oark` ma-
rauoers to park their semis, reach across to
the pile ol bales ano lairly quickly snatch a
loao. Or they toss 20 to 2¯ bales in their
pickup ano they have a S300 heist,¨ re-
porteo Kieller.
So what shoulo prooucers be ooing
with this commooity that tooay has consio-
erable value? Kieller suggesteo lighting
arouno the hay piles, or a better location
with 2!-hour visibility. Or perhaps tech-
nology will come to the rescue: electronic
sensing oevices appropriately locateo
arouno a hay stack can oetect motion ano
seno an immeoiate auoio alarm to the pro-
oucer`s house.
Meanwhile, how critical is the hay
shortage across America?
Veteran hay prooucer Harlan Anoer-
son, rural Cokato area, saio quality hay is
short supply everywhere. Ditch hay in
some areas is more than aoequate but con-
sioer the quality,¨ he noteo.
Who`s buying hay? Ferhaps because the
Minnesota lanoscape ouring the 2012
growing season got blesseo with a bit more
rain than other areas, Minnesota has hay
ano most ol it is leaving the state accoro-
ing to Anoerson. Does Minnesota hay
mostly travel to the orought oamageo`
states ol Texas, Oklahoma ano Kansas?
Saio Anoerson, I lino the most interest in
Inoiana, Illinois, Missouri, Kansas ano
Texas.¨
Is the growing hay shortage strictly a
lunction ol wioespreao orought? Not so
saio Anoerson who claims larmers grow
less hay because there`s more money grow-
ing corn ano soybeans. The hay shortage
was oeveloping because larm policy was
encouraging more corn ano soybeans but
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the signilicant orought in 2012 steppeo
up the process by at least live years.¨
Obviously Minnesota larmers too are
responoing to public policy ano plowing
up their allalla lielos to plant corn, soy-
beans ano wheat. This year Anoerson saio
a lot ol Minnesota hay was solo oll the
lielo. Ask yoursell, who was willing to
harvest hay ano take the time ano space
to store it lor an opportunity to oig it out
next winter?¨ he suggesteo. He aooeo,
Not a lot ol younger larmers are inter-
esteo in raising hay nor are their bankers.
Oloer larmers with paio-lor equipment
enjoy making hay ano many have some
hay available.¨
So are we mostly talking grass lano
hay` or is there gooo quality allalla on the
market tooay? Anoerson responoeo,
Gooo quality hay neeos to be raiseo on
the same grouno that can raise gooo qual-
ity corn or soybeans. Gooo quality hay is
therelore in shorter supply.¨
He mentioneo going to a hay auction
in Litchlielo in mio-November ano saio
hay was up over S100´ton compareo with
just a lew months earlier. The top lot ol
allalla hay at Litchlielo that oay was
S330´ton, two weeks earlier the top lot at
Sauk Centre was S3!0´ton.
So with perhaps even more corn ano
soybean acres this year what happens to
hay proouction? I think the real question
is who is going to plant their acres to allal-
la when S3¯0 to S!00 cash rents are com-
mon versus corn acres potentially grossing
more than S1,¯00 per acre,¨ noteo Anoer-
son. He`s a veteran allalla prooucer so live
plus tons per acre ,live cuttings, are olo
hat lor him. He claims allalla acres neeo
to be rotateo lor longevity ano maximum
proouction. But he asks the stubborn
question, When that allalla lielos gets too
olo ano is ploweo what is the larmer going
to replant?¨ He answers is own question
by asking What woulo the price ol allalla
hay have to be to convince a Renville
County corn ano soybean larmer to say to
himsell, I think I woulo rather plant hay
than corn or soybeans¨?
Keiler can be reacheo at 1-800-707-
001!. Or try the National Hay website:
www.nationalhay.org. Anoerson`s email
aooress is: ioleacres¸cmgate.com
Dick Hagcn is a frccIancc vritcr and
frcqucnt contrihutor to and othcr
agricuIturaI puhIications.
Hay Contlnueo trom page
AG SCENE - 34 - MARCH 2 & 3, 2013
Hay Continued from page 33
MARCH 2 & 3, 2013 - 35 - AG SCENE
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Glencoe Advertiser
Zach Pierson, 16, a sophomore at Glen-
coe-Silver Lake High School, has become
a regional director of FFA and begins his
duties after being installed April 16 at the
regional FFA banquet.
Pierson, son of Bill and Merri Pierson of
Silver Lake, lives on a “hay farm” and has
been involved in the local FFA for the past
two years.
He applied for the regional director’s
position in order “to teach others about
FFA.”
The director’s position is a one-year
term, but Pierson said he can reapply for a
different regional FFA office after his year
is up.
In between, Pierson said he will attend
leadership training sessions over the sum-
mer.
Currently, Pierson is the treasurer of the
GSL FFA group.
There are eight regional offices of FFA
in Minnesota, Pierson said, and GSL is on
the far eastern end of Region 5 that runs
as far west at New London-Spicer.
Pierson gives a lot of credit to first-year
FFA adviser Becky Haddad for getting
everyone more involved in the local FFA
chapter.
Pierson said he applied for the regional
position, “to represent the school” and to
become a leader who can help others.
Pierson has been active in a number of
FFA activities, including being on the
dairy food team that advanced to state,
the general livestock team as well as the
parlimentary procedure team that recent-
ly earned a second place in region com-
petition and will advance to the state com-
petition.
His older sister, Morgan, also partici-
pated in GSL’s FFA program and is now
attending college. Pierson’s older brother,
Devin, is a senior at GSL, but not in-
volved in FFA.
“Zach is certainly a great young man,”
said Haddad. “I’m so blessed to work
with such awesome kids — Zach is just
one example!”
Currently, 71 GSL students are on the
FFA roster.
“Zach worked really hard on his appli-
cation and prepping to go through the
process,” Haddad added.
“My goals for this first year are to say
‘yes’ as much as possible and get kids en-
ergized,” Haddad said. “I’m also trying to
do as much as I can to put everything in
the hands of the students. It’s their organi-
zation. They need to own it.
“I’m really lucky with the kids I have this
year. I really haven’t done that much apart
from unlock my room and make sure they
know when stuff is,” Haddad said.
“They put in the time to make FFA
great. I have a lot of hard workers. They
head up the planning for events, officer se-
lection, meetings, applications and prac-
tices. It’s all on them,” Haddad said.
Pierson named FFA regional director
Photo by Rich Glennie
Zach Pierson, son of Bill and Merri Pierson
of Silver Lake, has been named a regional
FFA director representing the Glencoe-Sil-
ver Lake FFA chapter. He begins his duties in
April and will take leadership training cours-
es over the summer.
AG SCENE - 36 - MARCH 2 & 3, 2013
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By Rich Glennie
Managing Editor
Glencoe Advertiser
“C
hina is where the United
States was in the late
1950s,” said Myron Of-
tedahl, a farm business management in-
structor and guest speaker at the recent
annual meeting and appreciation banquet
of the McLeod County Corn & Soybean
Growers earlier this year.
Oftedahl, who also is a member of the
county growers board of directors, trav-
eled with an agricultural delegation last
year, said the young Chinese are moving
into the bigger cities for “better paying
jobs.” And China is losing more farmland
each year to development.
Oftedahl spent 10 days in China learn-
ing about the Chinese soybean industry
and meat export markets.
He noted that China is by far the No.1
importer of U.S. soybeans. China imports
about 58 percent of the U.S. soybean pro-
duction, or about 836 million tons a year.
China also has about 70 percent of the
world’s “aquaculture,” but flooding is a
major issue.
China also has about 50 percent of the
world’s pork production, Oftedahl added.
The delegation stayed the majority of
the time in Shanghai, Oftedahl said “I
was impressed on how huge the city is,
and how many people are there — 25
million!” Oftedahl said.
Even though China’s land mass is about
the size of the United States, it has a pop-
ulation of over two billion people.
“The cities in China are very clean,”
Oftedahl said.
He added farmers lease land from the
government for 40 to 70 years, but if the
government wants the land back, it takes
it. The farmers, however, own the house
on the land,
he added.
Oftedahl
also was sur-
prised that
the freeway
systems were
good. He
said when
space be-
comes an
issue, the
Chinese
build up.
There are a
lot of two-
deck roads,
he added.
Oftedahl
said the
main diet of the Chinese consists of pork
and poultry. There is little beef consumed
there, he added.
The Chinese buy a lot of their groceries
every day because of their small living ac-
commodations. Often they buy live ani-
mals, especially poultry, from the markets.
To get fresh meat imports through Chi-
nese customers is an issue, Oftedahl said,
and the Chinese do not know what to do
with frozen meats.
While the U.S. has made inroads into
the Chinese markets, there have been ob-
stacles, too.
He also said it seems all meats are used
for stir fries by the Chinese, and most of
that is “secondary cuts. They don’t know
what to do with ham or pork chops.”
Oftedahl also said the Chinese prefer
the U.S. beans to South American beans,
because the latter has a red color.
“It was a weird mix of bicycles, scooters,
buses and cars, all at once,” Oftedahl said
of the street congestion in Shanghai.
“Electric scooters will kill you,” he smiled,
“because you can’t hear them.”
He also said pedestrians “have little
rights.” It is the first to the intersection
who wins, he added.
There was another surprise, Oftedahl
said. “I wasn’t prepared for all the private
industry in China,” and added they
toured several private soybean processing
plants in Shanghai.
They are modern-looking facilities, Of-
tedahl said, but a lot of the work of load-
ing and unloading is still done by hand.
The majority of the processing plants is
on the east coast of China. He said the
Chinese rely on the imported grains main-
ly for feed, and the domestic beans are for
consumption.
Oftedahl said the Chinese “are very
friendly, open and formal. It was an
amazing trip. Very interesting.”
He presented a slide show of his 10-day
trip that included five days in Shanghai,
four in other parts of the country and the
last day in Hong Kong.
*****
The annual meeting of the McLeod
County Corn & Soybean Growers also in-
cluded an election of officers for 2013.
Board member Dean Zimmerman re-
tired, and the newest board member is
Bob Lindeman.
The 2012 board consisted of Francis
Svoboda, president; Brian Thalmann, vice
president; Brian Jungclaus, treasurer; Of-
tedahl, secretary; and board members
Wayne Albrecht, Larry Ide, Mark John-
son, Steve Reiner, Dave Resch and
Nathan Winter.
Also speaking were representatives from
the Corn Growers and Soybean Growers
associations as well as Svoboda, who gave
an update on the association’s activities
throughout the past year.
China remains top importer of U.S. soybeans
Myron Oftedahl
China’s Rising Soybean Consumption
Reshaping Western Agriculture
Inter Press Service
Global demand for soybeans has
soared in recent decades, with China
leading the race. Nearly 60 percent of all
soybeans entering international trade
today go to China, making it far and
away the world’s largest importer.
The soybean was domesticated some
3,000 years ago by farmers in eastern
China. But it wasn’t until well after
World War II that the crop gained agri-
cultural prominence, enabling it to join
wheat, rice, and corn as one of the
world’s four leading crops.
This rise in the demand for soybeans
reflected the discovery by animal nutri-
tionists that combining one part soybean
meal with four parts grain, usually corn,
in feed rations would sharply boost the
efficiency with which livestock and poul-
try converted grain into animal protein.
As China’s appetite for meat, milk,
and eggs has soared, so too has its use of
soybean meal. And since nearly half the
world’s pigs are in China, the lion’s
share of soy use is in pig feed. Its fast-
growing poultry industry is also depend-
ent on soybean meal. In addition, China
now uses large quantities of soy in feed
for farmed fish.
China
Turn to page 39
AG SCENE - 38 - MARCH 2 & 3, 2013
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y g o l o r h p e N ·
h t l a e H l a t n e M ·
e n i c i d e M l a n r e t n Ì ·
e n i c i d e M y l i m a F ·
a o r h T d n a e s o N , s r a E ·
y g o l o i d r a C ·
e r a C r e c n a C ·
y g o l o i d u A ·
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y r e g r u S ·
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y r t a i d o P ·
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r e n o i t i t c a r P e s r u N ·
t a
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w w
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3 : 8 . i r F - . n o M
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MARCH 2 & 3, 2013 - 39 - AG SCENE
China Continued from page 37
Four numbers tell the story of the explo-
sive growth of soybean consumption in
China. In 1995, China was producing 14
million metric tons of soybeans and it was
consuming 14 million metric tons. In
2011, it was still producing 14 million
metric tons of soybeans, but it was con-
suming 70 million metric tons, meaning
that 56 million metric tons had to be im-
ported.
China’s neglect of soybean production
reflects a political decision made in Beijing
in 1995 to focus on being self-sufficient in
grain. For the Chinese people, many of
them survivors of the Great Famine of
1959-61, this was paramount. They did
not want to be dependent on the outside
world for their food staples.
By strongly supporting grain production
with generous subsidies and essentially ig-
noring soybean production, China in-
creased its grain harvest rapidly while its
soybean harvest languished.
Hypothetically, if China had chosen to
produce all of the 70 million metric tons
of soybeans it consumed in 2011, it would
have had to shift one-third of its grainland
to soybeans, forcing it to import 160 mil-
lion metric tons of grain – more than a
third of its total grain consumption. As
more and more of China’s 1.35 billion
people move up the food chain, its soy-
bean imports will almost certainly contin-
ue to climb.
The principal effect of skyrocketing
world soybean consumption has been a
restructuring of agriculture in the western
hemisphere. In the United States there is
now more land in soybeans than in wheat.
In Brazil, the area in soybeans exceeds
that of all grains combined. Argentina’s
soybean area is now close to double that
of all grains combined, putting the coun-
try dangerously close to becoming a soy-
bean monoculture.
Together they account for over four-
fifths of world soybean production. For six
decades, the United States was both the
leading producer and exporter of soy-
beans, but in 2011 Brazil’s exports nar-
rowly eclipsed those from the United
States.
Although most of the growth in the
world grain harvest since the mid-twenti-
eth century is from the tripling of grain
yield per acre, the 16-fold increase in the
global soybean harvest has come over-
whelmingly from expanding the cultivated
area. While the area expanded nearly sev-
enfold, the yield scarcely doubled. The
world gets more soybeans primarily by
planting more soybeans. Therein lies the
problem.
The question then becomes: Where will
the soybeans be planted? The United
States is now using all of its available crop-
land and has no additional land that can
be planted to soybeans. The only way to
expand soybean acreage is by shifting land
from other crops, such as corn or wheat.
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The end of the farmland bubble
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one of the speakers at AgCountry
Farm Credit Services’ marketing
day in Fargo. Seifried thinks the
key is how long the Fed continues
buying securities and bonds.
“Unemployment is currently 7.8,
so, if I’m an ag producer, that’s
what I’m going to watch. Once
that gets close to seven, I’m think-
ing that’s the end of land price
bubbles.
“I think you’ll see interest rates
rise in the next 18 months, once
we get unemployment around
seven,” Seifried said. “The key is,
in my view, not that ag land prices
aren’t worth the value given com-
modity prices, all I’m saying is
there’s an artificiality around land
and commodity prices because of
the bond buying program, which
has put almost $3 trillion in the
Unites States economy that wasn’t
there before.”
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ire Dealer has the tires you need and the “Hit Pay Dirt” our Certified Firestone Farm T
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®
rebate paid with a Firestone Prepaid MasterCard
*That's up to $800 on the best-selling, best-serviced farm tire brand in America –
rear radial tire you buy – up to 8 tires – only from your Certified Firestone Farm T
TRACTOR TIRE TH T AAT DELIVERS TH
NEED AND UP TO $800 BACK
ire Dealer has the tires you need and the “Hit Pay Dirt”
*That's up to $800 on the best-selling, best-serviced farm tire brand in America –
rear radial tire you buy – up to 8 tires – only from your Certified Firestone Farm T
HE PERFORMANCE YOU WAN
– JAN Y 1, 2013, UAR THROUG
ire Dealer has the tires you need and the “Hit Pay Dirt”
*That's up to $800 on the best-selling, best-serviced farm tire brand in America –
NT, , T
ROUGH
THE SERVICE YOU N
APRIL 30, 2013. VISIT
NEED AND UP TO $800 BACK
A CERTIFIED FIRESTONE FARM
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M TIRE DEALER Y. TODA AY. Y
ROUGH
FirestoneAg.com
*Limited-time offer valid from 01/01/13 through 04/30/13, subject to product availability. Requests must be postmarked on or before 05/31/13.
Once submitted rebate requests are validated, rebate will be issued in the form of a prepaid card. Prepaid card is issued by MetaBank™, Member
FDIC, pursuant to license by MasterCard International Incorporated. MasterCard is a registered trademark of MasterCard International Incorporat-
ed. Cards are issued in connection with a loyalty, award or promotion program. Card issued in the name submitted on rebate form and is not
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details. Offer cannot be combined with any other offers, promotions or discounts. Offer limited to 8 qualifying Firestone brand rear radial tractor
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es of qualifying tires at participating Certified Firestone Farm Tire Dealers in the 50 United States and DC and void where prohibited, taxed or re-
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Sam’s Tire Service
719 Chandler • Glencoe
(320) 864-3615
Visit our website at www.samstire.net
MARCH 2 & 3, 2013 - 43 - AG SCENE
I’ll make this quick and simple!
I have farmer-operators
and investors local and
nationwide looking for
farmland in 40 to 500 acre
tracks in Central MN.
Call me today for a free,
no obligation consultation
on your property!
Gary P Hotovec, Auctioneer/Realtor®
Hotovec Auction Center
320-587-3347 or 1-800-430-SOLD (7653)
Heller Group, 1 Stop-Realty
Olivia, MN 320-523-1050
MPCI • Hail Insurance
• Replant, Buy-up Options
Available
Deadline is March 15
Call Judy or Troy
(507) 237-2722 or 1-800-300-2722
• Over 20 Years in
Business
• A Rated Company
• Minnesota Based
We are in unprece-
dented territory for the
importance of weather
for agriculture in this
country and around the
world. In my 30 plus
years of farm reporting,
I never remember a
time when weather has
been so critical to farm
prices here and around
the world.
After a difficult grow-
ing season last year, we have found our-
selves in a very tight situation for grain
reserves. The drought that impacted the
price of corn and soybeans also has had a
direct impact on ethanol profitability,
margins for dairy and livestock farmers
and even the price of land is a direct re-
sult of tight stocks.
So where does that put us? Frankly,
there are three scenarios. First, we have
another poor crop and prices bounce way
up again. Second, a normal or slightly
below normal crop, which would mean
good prices, but not the levels of 2012.
And third, we could have a bumper crop
and the potential to go back down to pre-
vious normal levels for corn and soy-
beans.
The third option would be good news
for livestock and
ethanol, but certainly
not for those paying
high rents or farming
high-priced farmland.
It’s not a win-win situa-
tion for agriculture.
South America has
been having its weather
issues, and it may not
fill the void to fill the
world bins. So again,
the U.S. crop will be
the main issue of the day.
What will happen? It’s all weather,
weather, weather. We do know this.
1. We are going into spring short of
moisture.
2. Grain stocks are very tight.
3. We have the potential to produce a
bin buster if weather is good.
4. Meteorologist don’t agree on much,
but they do feel there will be some dry
areas.
5. Dry areas of the country have gotten
some relief, but more moisture is needed.
Top market analysts suggest farmers
hedge their bet and cover themselves for
all three scenarios if they can. It’s going
to be an interesting ride, so buckle up!
Where are prices headed?
Watch the weather
Lynn Ketelsen
Lynn Ketelson is the Farm Director
for Linder Farm Network.
Rain needed at right time and in the right amount
Meteorologist Leon Osborne, president
of Meridian Environmental Technology,
told farmers at Ag Country Farm Credit
Services’ marketing day, the big chal-
lenge this growning season will be the
lack of subsoil moisture.
“We’re not going to be able to tap into
that supply that saved us this last year, so
we’re going to depend upon Mother Na-
ture providign that rain at the right time
in the right amount. RIght now we don’t
have either,” said Osborne.
Osborne noted that a snow pack is
needed to launch the spring season. This
will start the evaporation process that
connects to whatever storms come this
spring.
AG SCENE - 44 - MARCH 2 & 3, 2013
We’re with you when it comes to reducing downtime
and increasing efficiency. That’s why we were the first
in the market to address and alleviate the challenges
of newer engines. And why only Cenex
®
Ruby
Fieldmaster
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blend of additives proven to boost fuel economy by
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prevents newer engines from “cooking” the fuel and
ruining injectors and filters. Learn how to optimize engine
performance and get a warranty for up to 10 years or
10,000 hours at cenex.com/tpp.
No one has fueled today’s
HIGH-TECH ENGINES LONGER.
No one fuels them better.
*Versus a typical #2 diesel fuel.
330 E. 10th St., Glencoe
1-800-848-6753 • 320-864-5561
Tire Service - Glencoe
320-864-6292
Call Glencoe
Co-op for your
spring diesel
needs!
is your area
dealer for
Kuhn Krause
DOMINATOR
®
12’ model
KUHN Krause offers a line of primary tillage tools that
promote the breakdown of crop residue and allow for
excellent root development for the next crop. These sub-
surface tillage tools break up compaction while preserving
the soil surface, promote aeration, limit erosion
and runoff, and improve water infiltration
which helps the soil retain moisture.
800-642-4104 or
507-228-8224
www.ufcmn.com
Main Office/
Ag Service Center
840 Pioneer Ave.,
Lafayette, MN
Check With Us For Your New &
Used Grain Dryers & Augers
Bobcat · GSI · Brock · Sudenga
Gehl · Farm Fans · Wilrich
You'II
find it
at...
Check with us on grain
bins, dryers, grain handling
equipment & grain augers
UFC
United Farmers Cooperative
CONKLIN
®
AGROVANTAGE
®
PRODUCTS
Fertilizer for High Yields
“Systems approach moving growers out of the yield rut!”
• Liquid fertilizers for in
row and foliar feeding
• Rainfast surfactants
• Drift control
• Nitrogen slow release
additives
• Grain bin and silage bag
repair products
• Manure pit treatments
• Chelated liquid
micronutrients stop
yellow flash from
Roundup
• Seed treatments
• Forage preservatives
• Natural animal products
• Long distance lubricants
and fuel additives
• Plus many more
products for farmers
that lower inputs and
increase yields!
NEEDED NOW: Conklin Ag
Centers, Retail Stores,
Sales Reps and Field
Managers. Buy wholesale
direct from farmer-owned
44-year-old
company based in MN
For more information call:
KEN FRANKE’S
CONKLIN SERVICE
320-238-2370
or 855-238-2570
www.frankemarketing.com
Ag Specialists Can Handle
All Your Ag Production Needs
Ag Specialists
320-238-2188
Plato
Big Gain Feed
Rolling, Mixing, Feed Delivery
TMR Balancing & Formulating
Full-Service Grain Facility
Direct Ship Grain
Dekalb Seed/Asgrow Seed
Direct Seeding Alfalfa
Custom Application & Spraying
Liquid Fertilizer & Chemical Needs
QUALITY AND EXPERIENCE THAT YOU CAN TRUST
Kruger ~ LG
MPS ~ Mycogen ~ Stine
Corn ~ Soybeans ~ Oats ~ Wheat ~ Barley
Alfalfa ~ Forage/Pasture Mixes ~ Lawn Seed
Thalmann Seeds Inc.
Plato, MN
(320) 238-2185
Grow With Us!
MARCH 2 & 3, 2013 - 45 - AG SCENE
THE BEST DEAL
IN THE FIELD
Get 2 Months Free
when you subscribe to
The McLeod County
Chronicle
Ag Scene 1-YEAR SUBSCRIPTION FORM
Name
Address
City/State/Zip
Please Indicate:
NEW RENEWAL
We accept Visa and Mastercard
The McLeod County Chronicle
716 E. 10th St. • Glencoe, MN 55336
Not good with any other offers. Good through March 15, 2013.
Amount Enclosed
$
1-Year Subscription
McLeod Publishing, Inc.
716 East 10th St., Glencoe, MN 55336
(320) 864-5518 • Fax: 320-864-5510
E-mail: trishak@glencoenews.com • www.glencoenews.com
McLeod County Chronicle Rates:
McLeod County & New Auburn Addresses $34
Other Minnesota Addresses $40
Addresses outside Minnesota $46
• Club Lambs • Rambouillet • Breeding Stock
lnms@embarqmail . com
Virgil • Lynn
Glencoe, Minnesota
320-864-4453
1618 S Broadway
New Ulm, MN 56073
507-233-9457
For All Your
ELECTRICAL NEEDS
Valley View Electric, Inc. serves all
Industrial, Commercial, Agricultural,
and Residential Customers.
UL 508a Industrial
Control Panel Builder.
Fast facts about agriculture
American Farm Bureau
Federation
• 2.2 million farms dot America’s
rural landscape. About 97 percent
of U.S. farms are operated by fam-
ilies – individuals, family partner-
ships or family corporations.
• Farm and ranch families com-
prise just 2 percent of the U.S.
population.
• More than 21 million Ameri-
can workers (15 percent of the total
U.S. workforce) produce, process
and sell the nation’s food and fiber.
• Today’s farmers produce 262
percent more food with 2 percent
fewer inputs (labor, seeds, feed, fer-
tilizer, etc.), compared with 1950.
• In 2010, $115 billion worth of
American agricultural products
were exported around the world.
The United States sells more food
and fiber to world markets than we
import, creating a positive agricul-
tural trade balance.
• 31 percent of U.S. gross farm
income comes directly from ex-
ports.
• One in three U.S. farm acres is
planted for export.
• About 23 percent of raw U.S.
farm products are exported each
year.
• Farmers and ranchers receive
only 16 cents out of every dollar
spent on food at home and away
from home. The rest goes for costs
beyond the farm gate: wages and
materials for production, process-
ing, marketing, transportation and
distribution. In 1980, farmers and
ranchers received 31 cents.
• U.S. farm programs typically
cost each American just pennies
per meal and account for less than
one-half of 1 percent of the total
U.S. budget.
• Americans enjoy a food supply
that abundant, affordable overall
and among the world’s safest,
thanks in large part to the efficien-
cy and productivity of America’s
farm and ranch families.
AG SCENE - 46 - MARCH 2 & 3, 2013
HOURS
Sales: M/Th 8-8,
Tue/W/F 8-5:30, Sat 8:30-4
Service: M-F 7:30-5
Parts: Saturday until Noon
www.harpelbrothers.com
* 2.9% on select GM CUVs to qualified buyers, OAC.
GLENCOE, MN
320-864-5181
Toll-Free 800-950-5180
Your New & Pre-Owned Truck
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11 PUBLICATIONS 5 WEEKS
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For $50 your ad will run for 5 weeks in
these 11 publications:
The McLeod County Chronicle • The Glencoe Advertiser • The Galaxy
Silver Lake Leader • The Sibley Shopper • Arlington Enterprise
Renville County Shopper • Renville County Register
Western Peach • GlencoeNews.com • ArlingtonMNnews.com
($50 is for 15 words, 50¢ each additional word. $45 without a photo.)
716 E. 10th St., P.O. Box 188,
Glencoe, MN 55336 • 320-864-5518
trishak@glencoenews.com
Kevin Grimm, Glencoe
320-224-1339
midminnesotabuilders.com
Lic. #BC509530
MARCH 2 & 3, 2013 - 47 - AG SCENE
AG SCENE - 48 - MARCH 2 & 3, 2013
FU11!N0 1N8 F0U0 Û0MP0N8N19
0! F00!!1A0!L!1Y T0081N80
Are you a baseball fan? Maybe you’ve even played in a game or two? You know that the only way to win a game of baseball is by rounding the bases
and touching home to score. You need to work as a team, rely on the coaches, and find a way to make it to home. The steps to reaching farm
profitability can easily be compared to running the bases and rounding to home in a baseball game.
A baseball player can prepare for different situations when it comes to running bases in a game countless times.
But how you handle each situation, when it comes to actually running the bases, can make all the difference.
There are many factors that can affect how a player successfully gets to home base; you can easily be distracted by lack of focus or controlling emotions.
A good base runner won’t let a large crowd, the score of a game, what inning you are in, or the competition affect your ability to make a good decision.
Every base runner wants to make it home, and with the help of your team and coaches, good decisions are easily made.
Just like running the bases takes smart and educated decisions, maximizing your farming profitability takes patience, good decision making,
and putting trust in the coaches you rely on.
Let’s say you are up to bat;
Home base is what we will consider “production”.
This is not only where it all starts, but it is where you have the most control. Home lets you focus on preparing the field, planting the right seed at the
correct depth, nurturing it along the growing season, and where you take ownership for your business!
Now let’s compare first base to “crop insurance”.
This is how you can protect your investment, secure revenue and provide peace-of-mind.
You need to make sure you are covered for the unexpected; the thing you can’t control; Mother Nature!
Next you are rounding to second which we call ”grain marketing”.
This is the most difficult job every grower will face. Utilize Corn Capital Innovation’s experts to help you gain the knowledge that gets the best competitive
advantage when it comes to the ever changing market.
Third base is “Financial Management and Analysis”.
You may question whether or not this is the appropriate time to buy a newer combine; is it time to invest and expand your acreage? Again, Corn Capital
Innovations can help you figure out your profit margins, manage labor resources and set you up with a secure business plan.
Rounding third and off to home is actually putting all 4 components of farm profitability together.
Each farmer and farm operation has unique needs and Corn Capitol Innovations is the only company providing a total farm business solution.
So remember: Making your own decisions, while trusting the guidance of your coaches, leads to a score!
Consider Corn Capital Innovations as your coaching team; CCI is truly an educational hub of information.
If you want to make smart, educated decisions and round the bases to home,
contact us today and we will discuss how the four components of farm profitability can positively impact your farm business.
P.O. Box 207 • 80829 County Rd. 13 • Olivia, MN 56277
(320) 523-2252 • www.corncapitalinnovations.com
This document is © 2013 by admin - all rights reserved.