Northland Partners INSIDE HAZEL ELEVATOR OF THE YEAR - COVER STORY: PAGE 22 - CHS Mahnomen
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Northland Partners INSIDE HAZEL ELEVATOR OF THE YEAR COVER STORY: PAGE 22 2020 FIELD SIGN CONTEST WINNERS PAGE 20 DOING BETTER TOGETHER PAGE 18 A PUBLICATION OF CHS AG SERVICES • CHS MAHNOMEN • CHS NORTHLAND GRAIN WINTER 2020
CHSINC.COM INSIDE THIS ISSUE 3 NORTHLAND PARTNERS DIRECTORY New Dry Plant Will Make Growth Possible CHS AG SERVICES Decompressing current plants makes room for new customers............................Page 4 WARREN HEADQUARTERS Warren main office: 218-745-4166 Prevent Injury During Harvest Tips to help you come home safe at night...................................................................Page 6 Warren local number: 218-745-4361 Grand Forks main office: 701-772-4873 More for Your Propane Dollar Toll-free: 800-732-4265 CHS trains more, right-sizes tanks and installs monitors......................................... Page 8 www.chsagservices.com Insurance: Service Still No. 1 Priority Despite changes in how we do business.......................................................................Page 9 CHS MAHNOMEN Main office: 218-935-2261 Good Data Will Save You Money Toll-free: 800-746-2558 The CHS YieldPoint® team will collect and organize it............................................ Page 10 Erskine terminal: 218-687-5400 www.chsmahnomen.com Collaboration for Grower Success CHS business units work together to benefit their owners....................................Page 13 CHS NORTHLAND GRAIN Full Shuttle Loaded at Mahnomen St. Hilaire main office: 218-964-5252 Faster dumping and competitive prices for your grain.......................................... Page 14 Crookston main office: 218-281-2881 Crookston terminal: 218-281-5273 Autumn Rewards 2021 Hazel: 218-681-5280 What our input finance program will look like...........................................................Page 16 Warren: 218-745-5363 Doing Better Together www.chsnorthlandgrain.com CHS grant protects essential workers...........................................................................Page 18 The Importance of Friendships Growers value relationships, not just products and services.................................Page 19 COVER PHOTO: Soybean pile grows at CHS 2020 Field Sign Contest Winners Mahnomen’s Erskine terminal during The joy of driving slow and looking at good crops................................................. Page 20 the 2020 harvest. CHS Northland Grain Honored by Railroad PHOTO ABOVE: CP names Hazel their U.S. Elevator of the Year.........................................................Page 22 The price of all grains pushed higher with China’s summer soybean The Big Soybean Export Program purchases. Produces a $2.00/bu. rally in the cash price..............................................................Page 24 The Beat Goes On Market says “sell beans”...................................................................................................Page 26 ©2020 CHS Inc. All Rights Reserved.
4 A MANAGER’S VIEW New Dry Plant Will Make Growth Possible By Ryan Anderson, General Manager, CHS Ag Services Our new Hazel, Minnesota, dry and Thief River Falls. fertilizer plant will be ready for spring. At the same time, the construction of this new 17,000- In fact, we’ll probably be receiving ton plant with storage for 10,000 tons of urea takes major fertilizer at this new facility by the end of pressure off our Erskine hub plant, and it opens up new calendar 2020. It’s the first time CHS Ag opportunities at our Oklee location, which will now rely on Services has built a fertilizer plant with Hazel instead of Erskine. such an impact on so many locations. Before we were handcuffed from exploring new As I noted in the Summer 2020 opportunities. Now, we feel good about meeting with edition, bringing our new Hazel dry new growers in areas that our facilities at Hazel, Oklee plant online will allow us to shut down and Erskine serve. We’re currently having some strategic Ryan Anderson two smaller, aging facilities at St. Hilaire meetings with our sales and operations teams about how we can enhance the customer experience, not only for our existing customers but for our future customers. New plant removes risk One big plus that will result from the construction of our new Hazel plant is we will have almost all of our spring fertilizer needs on hand for our customers. Logistically, this removes risk to our owners of having to wait for their fertilizer because of late river opens, delayed trains and lack of available trucks in-season. Their spring fertilizer will already be in one of our buildings, waiting for them when they head for their fields. Not many competitors can say that. We’ve been building up our rolling stock for this moment. We’ve added a lot of horsepower in floaters and tender trucks to make sure we’re ready to meet the expectations of our growers. The other thing this new dry fertilizer plant offers is our proximity to other CHS entities with which they do business. We’re in the same yard as CHS Northland Grain. Not only does it bring efficiencies to our customers, but it strengthens relationships with our co-workers in grain marketing, which should benefit our growers. Importance of the Northland Our company is investing in few capital projects at a time when our nation struggles through a health crisis. The Hazel project is one of those few, and we can be proud of it. We’re building something during a difficult time. That shows the commitment of CHS to growers in the Northland region. By the way, CHS Ag Services is also making a $2.5 million investment at Crookston, Minnesota, this fall. We’re building a new 50’ x 200’ crop protection warehouse at our agronomy plant south of that city. The warehouse will feature twin load bays and a fully automated bulk chemical and liquid fertilizer storage and mixing system. The new CPP warehouse will be finished by the end of calendar 2020. This 17,000-ton dry plant under construction at Hazel will be filled over winter and ready to deliver fertilizer to area fields next spring.
A MANAGER’S VIEW 5 “The Hazel project is one of the few CHS has invested in during this difficult time. It shows the Serving Our company’s commitment to our area.” Second Family During our nation’s health crisis, the CHS business units serving you have been operating under emergency policies and procedures. Communication is less in-person, less coffee talk, more calls, texts and e-mails. Still, many things stay the same. CHS Ag Services, CHS Mahnomen and CHS Northland Grain have observed the best practices set forth by our company and the states, counties and municipalities in which we operate. But we continue to serve our customers, who are our owners, on a high level. That won’t change. We’re still taking care of our growers, and we’re enormously proud of our agronomy, energy, finance, grain marketing and insurance teams for accomplishing that during the 2020 growing season. It’s not easy to follow the anti-viral protocols and still do our jobs, but our teams have gone the extra mile during this growing season and still made sure our customers and employees stayed safe. Delivering needed inputs to our growers’ farm and marketing their grain is a big part of what we do. In the grand scheme of things, however, the relationships we’ve formed and continue over the years is what’s most important. We’ve served some customers for 20-30 years, and others are new. This business remains fun because of the relationships we’ve made and been able to maintain. You’re almost like our second family.
6 SAFETY Prevent Injury During Harvest By Jesse Bushelle, Bernie Perreault, Steve Spaeth and Trevor Staehnke, CHS Safety Specialists for CHS Ag Services, CHS Mahnomen and CHS Northland Grain Jesse Bushelle, Bernie Perreault, Trevor Staehnke and Steve Spaeth At harvest time, our farmer-owners spend countless Last year, corn went into the bins wet. As a result, there hours in equipment. A lot of grain (and the equipment used were many grain bin accidents and several fatalities. Don’t to harvest that grain) is transported on narrow highways be one of those fatalities this year. and gravel roads. You and everyone else would do well to Farmers put in long hours during harvest. Slow down. exercise caution on and off these roads. Make sure you know where your helpers are. With remote People who work with numbers tell us agriculture ranks learning and more families homeschooling, there will be among the nation’s most hazardous industries. Here are more children around the farm this harvest. Make sure you a few tips to help you, your family and friends, and your know where your children are at all times. employees come home safe at night. Harvest is a stressful time of year, and the current national 1. Read the operator’s manual. Know the equipment health crisis makes things even more stressful. So, be safe. you are operating. Why are we telling you this? You are our patrons and 2. Make sure your vehicles have slow-moving signs. the owners of this company. Most of us live in small 3. Wear your seat belt. communities. We know your families, and you know ours. 4. Put your equipment in neutral or park and turn off the We want you to stay safe and return home to yours at the motor before dismounting. end of these long workdays. 5. Limit riders. 6. Keep all guards in place. 7. Stop if you feel fatigued. Getting just a little more “With remote learning, there done IS NOT worth the risk. 8. Have all your safety equipment in good condition and will be more children around use it. the farm. Make sure you know 9. Practice grain bin safety. where they are at all times.” If you are interested in on-site safety training, give us a call. We’d be happy to set up a time to talk with you, your employees and any children on your farm. JESSE BUSHELLE 218-686-6119 TREVOR STAEHNKE 2 1 8 - 2 8 9 -3 574 STEVE SPAETH 218-556-2643
8 ENERGY More for Your Propane Dollar By Tom Prout, David Hunt, Clay Syverson, and John Grandstand, Certified Energy Specialists of CHS Ag Services John Grandstrand, David Hunt, Tom Prout and Clay Syverson With cold weather ahead, we wanted to remind you of will never run out of clean burning propane, but it helps us the extra value CHS Ag Services offers its LP gas customers. organize our routes more efficiently and offer you the most Whether you use propane to heat your residence, your shops competitive price. or your livestock barns — you get more for your propane Now that you know about the extra value you receive from dollar with us. CHS Ag Services, give your Certified Energy Specialist a call Did you know our LP drivers, service people, sales staff today. We’ll sign you up. and even our office personnel are required to have more training than most propane suppliers? Government and Propane incentive program industry regulations require refresher courses every five If you’re currently a propane customer of CHS Ag Services, years. CHS propane employees are required to take basic, you may know of someone else who would appreciate a delivery and set-up refresher courses every three years. supplier with extra value. By introducing friends, family, or We also customize our tank set-up and deliveries to your neighbors to CHS Ag Services, you will receive $50 for every needs. Before we deliver the first gallon of propane to a referral, provided they become a CHS Ag Services propane new customer, we’ll talk about how you will use it and how customer. much you will need, so you can be sure your storage is There’s a lot to like about our propane delivery services: sized correctly. • No lease on a CHS propane supply tank for the We’ll also monitor your tanks, so we know when they are first year. getting low and need a refill. Yes, we’ll keep an eye on your • No charge for the tank monitor – in fact, we’ll monitor tank for you — but you can see the tank levels, too. You can a tank you own if we are your propane supplier. download an app that shows you how much LP is in the tank • No worries of running out or being charged extra for at any time. out-of-gas calls with our Keep Fill plan. Best of all, we offer a Keep Fill Program so we can fill your Got a referral? Call one of us today with the name, address, tank whenever we’re in the area. It not only assures you and phone number of the person you are referring. CHS employee Harlan Iverson makes the first delivery of propane to the home of David Manley of Lake Bronson, after setting a new tank. CHS AG SERVICES — CERTIFIED ENERGY SPECIALISTS JOHN GRANDSTRAND Stephen, Greenbush, Badger and Thief River Falls 218-478-4181 john.grandstrand@chsinc.com TOM PROUT Grand Forks, Hillsboro and Fargo 701-739-3304 thomas.prout@chsinc.com DAVID HUNT Oslo, Argyle, Minto and Drayton 218-201-1517 david.hunt1@chsinc.com CLAY SYVERSON Crookston, Erskine, Ada, Mahnomen and Oklee 218-280-3451 clay.syverson@chsinc.com
INSURANCE 9 Service Still Our No. 1 Priority By Lonnie Longtin, CHS Northwest Insurance Services The year 2020 will be remembered A couple of reminders on insurance. for a long time to come. 1. Keep very good yield records of The start of your crops coming off the fields. the crop year CFAP and now CFAP2 base their coincided with the payments on your yields. There beginning of the have been audits from CFAP, COVID-19 pandemic. and I expect more from CFAP2. This limited the 2. If you have a loss, try to keep the businesses which production separate. If that’s not were deemed possible, keep truckload records essential and could of what goes into your bins from Lonnie Longtin be open, and it each field. made it difficult to I have been asked how this conduct our day-to-day activities. pandemic is going to change the Where our growers could get in insurance industry. For crop insurance, the fields to plant wheat, they had I expect less contact from agents and to contend with ruts from last year’s adjusters. I see more emails, more doc- soybeans. In part of our market area, u-sign and more technology. I expect once small grains were planted, they underwriters will stay working from were deluged with six to eight inches home, company representatives will of rain. “Preventive plant” became the travel less, and meetings will be over buzz words. the internet. Soybean planting went somewhat These changes may make it more better. It helped that the wheat ground difficult at first. But rest assured, from last year was in good shape. serving you will remain our number Crops were looking fairly good when one priority. the hail hit. As a provider of crop insurance, we went from two claims to 66 claims in three weeks. Damage ranged from 5% to spots over 80%. Wheat yields have been somewhat “Keep good yield records and disappointing, and quality has been an keep track of what goes into issue in some areas. Fields of barley your bins from each field.” and oats also produced lower-than- normal yields, on the average. Soybean harvest has just begun, and the prices have rallied, so it is easier to be optimistic about them. CHS NORTHWEST INSURANCE SERVICES LONNIE LONGTIN 218-964-5252 BRIAN BERDAHL 218-964-5252 LYLE FUCHS 2 1 8 - 9 4 5 - 69 6 4 JANADEE FUCHS 701-371-6193
10 TECHNOLOGY Good Data Will Save You Money By Mark Halley, Michael Beiswenger, and Paul Davey, CHS YieldPoint® Specialists Mark Halley, Michael Beiswenger, and Paul Davey With the 2020 season behind us, it is a great time to information can be entered into various apps for ease of make sure all your planting, growing, and harvesting data access. We can also make hard copies to put in a binder for was collected correctly and is organized to make it work making final plans for 2021. for your operation in 2021. Knowing the seed, chemical and fertilizer you need for Whether it is seed varieties, seeding populations, your ongoing operation will save you valuable time and spring applications, in-season treatments, yields or fall money. Contact the CHS YieldPoint® team through your applications, your data must be properly broken down to CHS Ag Services agronomist to help you organize all of see what farming practices worked best on your operation. this and make sure your data is put to work for you. CHS YieldPoint® can help you utilize this information to make good decisions for the next cropping season. The “Data must be properly broken down to see what farming practices worked best on your operation.”
11 Examples of 2020 data needed to put together a 2021 farm plan.
ENERGY
STRONGER TOGETHER 13 Collaboration for Grower Success By Andrew Schultz, Sales Manager, CHS Ag Services and DuWayne Thompson, General Manager, CHS Northland Grain When you trade with business units like CHS Ag Services, CHS Drayton, CHS Northland Grain or CHS Mahnomen, you trade with CHS, the company you own. At times, we get so focused on what each of us does well that we forget our connection and our ability to collaborate in areas Andrew Schultz DuWayne Thompson that could add value to our member/growers. This past year offered many opportunities to collaborate. In fiscal year 2019-2020, which ended on Aug. 31, 2020, CHS Ag Services’ energy business continued to grow within the same trade area, simply by telling customers of all CHS business units about the Automated Farm Fuel Delivery (AFD) program, which is truly one of a kind, and about other services offered by our Certified Energy Specialists (CES). Also this year, CHS Mahnomen and CHS Ag Services worked together to source and provide quality seed and seed treatment options in our southern trade area. For the first time, Allegiant-brand soybeans were planted on the farms of several CHS Mahnomen grain customers. Joining hands for the growers’ good In 2019-2020, CHS training brought together grain merchandisers, agronomy sales reps, certified energy specialists, credit managers and insurance providers to discuss programs and options in their respective fields that might benefit customers of all CHS business units. As a result, sales agronomists began referring growers to grain merchandisers who could answer questions about canola contracts. Agronomists and grain merchandisers began working together in earnest to address the problem of low falling numbers in wheat. Our grain personnel gained a better understanding of the advantages and availability of wheat seed treatments offered by our agronomy personnel. Our grain companies agreed to make it their first priority to purchase propane for drying from CHS energy units. Doing business with ourselves is good for CHS, and good for all growers with a stake in this company. Expect this collaboration to continue.
14 NEW IDEAS GROWING Full Shuttle Loaded at Mahnomen By James Hardy, General Manager, CHS Mahnomen The process of expanding the track and grain handling facilities at the Mahnomen elevator to allow the loading of full shuttles took us a few years to navigate, but we finally completed the expansion this past summer. On July 31, 2020, we began to load our first full shuttle of grain. On Aug. 1, 2020, we billed it out. Loading the first shuttle went better than expected. When using James Hardy new equipment for the first time, you never know what is going to happen. These things usually look better on paper than they work in reality. But the process of loading 425,000 bushels of corn bound for an ethanol plant on the west coast worked surprisingly well. Our CHS Mahnomen location manager, Justin Haus, and his crew did an excellent job understanding the system beforehand. We were also thankful for the help of employees from our Callaway location. Having all hands-on-deck made this first experience a good one. Since then, we’ve loaded several shuttle trains of corn, soybeans and wheat, and the system is working well. Why we built it I think it is important to remind ourselves of the reason we constructed the shuttle loader at Mahnomen. We had been co-loading shuttles between Calloway and Mahnomen, but the Canadian Pacific Railroad (CP) told us they would no longer permit us to co-load. For CHS Mahnomen, the choice was clear. We needed to build the shuttle loader if we wanted to continue to provide a viable market for our growers. The completion of this project assures our growers of a competitive market and price for their grain into the future. Although they are not the main reasons we built this shuttle loader, there are other benefits which growers will appreciate. We can receive their grain 50% faster than we previously could, and the new outbound scale speeds up the overall flow of trucks, which is particularly important at this time of the year. Interested in hauling your grain into the Mahnomen elevator? Call 218-935-2261. Kevin Teiken and Jeff Kjolberg operate the blue locomotive pulling cars south from the Mahnomen shuttle loader.
GROWING 15 On the switch engine, Chuck Forester (left) talking with John Kersting (right) and Taylor Carlson (on the ground). The new shuttle loader at the Mahnomen elevator can fill a rail car with corn in four minutes and 35 seconds. A 105-railcar shuttle must be loaded with 425,000 bushels of corn within 24 hours of the railroad delivering cars. One of the first cars in a shuttle of corn loaded on July 31 at the Mahnomen elevator. An aerial view of a shuttle being loaded at CHS Mahnomen.
16 FINANCE Autumn Rewards 2021: What It’ll Look Like By Jake Brown, Credit Manager, CHS Ag Services I want to thank everyone who participated in Autumn One thing is new this year. In past years, we needed Rewards, CHS Ag Services’ input financing program, during your original application. This year, all we need is the the 2020 growing year. This year, a signed copy. record 485 growers financed a portion If you have not participated in previous years, reach out of their inputs through this program, to your CHS Ag Services representative, and ask them for which offered chemical purchases at an Autumn Rewards application. 0% interest until Nov. 15, 2020, seed As in the past, we would like to receive all the completed purchases at 0% interest until Jan. 15, applications at our Warren, Minnesota, headquarters by the 2021, and AFD fuel purchases at 3.4% end of March. That will give us ample time to process and APR, due Jan. 15, 2021. approve them before you go to the field. Jake Brown Individual growers borrowed anywhere Enjoy the winter. We look forward to working with you from $10,000 to $500,000 through again next season. Autumn Rewards, which is designed to help with cash flow and eliminate the need to worry about seed and chemical payments until after harvest. Autumn Rewards for 2021 will be very similar to this past year’s program. The terms will still be 0% interest until Nov. “Zero percent interest on 15, 2021 on chemical purchases, 0% interest until Jan. 15, chemical and seed until after 2022 on seed purchases, and 3.4% interest on AFD fuel harvest.” purchases until Jan. 15, 2022. We’ll have applications ready for all who participated in 2020 and your sales agronomist will bring them around this winter for you to sign.
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18 COMMUNITY Doing Better Together Through its participation in the CHS Seeds for “to protect the most fire fighters we possibly can.” The Stewardship program, CHS Ag Services is making it specialized hoods will address that goal. Two other goals possible for local organizations to do things for residents will also be satisfied: annual training of the importance of of northeastern North Dakota and northwestern Minnesota safety equipment and maintaining up-to-date personal that they would have difficulty doing on their own. protective equipment (like the hoods) for all fire fighters. This fall, Mentor Volunteer Fire and Rescue (Mentor, The award of this CHS grant will enable Mentor Minnesota) was granted $2,000 Volunteer Fire and Rescue to purchase to purchase specialized hoods up-to-date PPE equipment for all We’ve had to cancel several events, to help protect firefighters from firefighters in the department. cancer-causing agents while but Seeds of Success is something we “In these uncertain times, we responding to fire emergencies. can continue to do.” –Kristy Horne have had to cancel several annual One thousand dollars came from Dunn, CHS Ag Services events,” says Kristy Horne Dunne, CHS Ag Services, headquartered HR/Marketing Director for CHS Ag at Warren, Minnesota and a Services, “but Seeds of Stewardship is matching amount came from the something we can continue to do.” CHS corporate office at Inver Grove Heights, Minnesota. “I like that we can donate back to our communities and Mentor Fire and Rescue is comprised of 29 members show everyone we care,” she continues. who volunteer to protect and serve the municipalities Kristy says Heather Burd heard about Seeds for Success of Mentor, Grove Park-Tilden, Woodside, Maple Bay, and from CHS YieldPoint® Specialist Mark Halley. Heather called Godfrey Townships. Kristy on May 5, 2020, and CHS Ag Services applied right The most important goal of this fire and rescue unit is away for the matching grant program. CHS Ag Services and
COMMUNITY 19 The Importance of Friendships By Kristy Horne Dunn, HR/Marketing, CHS Ag Services Thanks to all our grower/customers for bearing with us during this unusual time of mask wearing and social distancing. To keep you safe, we have put into place certain rules and regulations that we hope — and expect — will not be permanent. We look forward to the return of face-to-face Kristy Horne Dunn transactions, morning coffee gatherings and the conversations we have thoroughly enjoyed at many of our locations. Would you believe it, some growers and retired farmers have even called me to ask if we are having coffee yet. Through it all, we’ve found that you appreciate not just the products and services you receive from CHS Ag Services, CHS Mahnomen and CHS Northland Grain. It is the relationships and the conversations that you value. We treasure those friendships, too, and we are looking forward to the day when we can all get together again. Mentor firefighters Jay Anderson and Heather Burd accept a check for $2,000 from CHS Seeds for Stewardship. Mentor Fire and Rescue both heard on August 24 that a grant had been approved. “It’s a long review process,” explains Kristy. “CHS puts a lot of care and thought into each application and not all applications are approved.” Priority is given to projects that improve ag safety in rural communities and cultivate ag leaders, according to the CHS website. Last year, CHS Ag Services applied for and received matching grants to fund HOPE Coalition, a program designed to raise mental health awareness in rural Minnesota. Earlier the same year, CHS Ag Services contributed to Stephen-Argyle Central High School to purchase equipment for a new educational program, and to the Crookston Fire Department to purchase a new fire truck. EDITOR’S NOTE: A new donation year is rapidly approaching. CHS Seeds for Stewardship applications are accepted Dec. 1, 2020, to Feb. 1, 2021, and May 1 to July 1, 2021. To apply, contact CHS Ag Services, CHS Northland We look forward to the return of face-to-face Grain or CHS Mahnomen for more information. transactions and morning coffee.
20 SEED 2020 Field Sign Contest Winners It hardly seems possible that the second year of our Field Sign Contest is in the rear-view mirror. This year, a whole new group of growers entered the contest, which offers each winner a $250 statement credit. “The chance to win a $250 credit may have sweetened the pot, but I think many growers who entered the sign contest did so because they are legitimately proud of their crops,” says Kristy Horne Dunn, CHS Ag Services marketing director. Grower: Schulz Farms Agronomist: Todd Sommerfeld Eligible crops this year included Allegiant® corn, soybeans, and wheat; Asgrow® soybeans; DEKALB® corn; Mycogen® corn and soybeans; NK® corn and soybeans; SESVanderhave® sugar beets; and WestBred® Wheat. Contest rules state that signs must show both the brand and the hybrid or variety of the crop. Andrew Schultz, Kristy Horne Dunn and Terry Sonju, seed team leader for CHS Ag Services, administered the contest. They announced 10 winners in August. Here are the 2020 Field Sign Contest winners in no particular order: • Duck Younggren, Hallock, MN. • Schulz Farms (Dennis Schultz), Euclid, MN • Haugen Family Farms (Mark Haugen), Roseau, MN • Kurt Peterson, Warren, MN • Brent Riopelle, Argyle, MN • Jason Smith, Badger, MN • Blawat Farms, Greenbush, MN • Ken Magnusson, Argyle, MN • Tracy Anderson, Warren, MN • Mekash Farms (Dale Mekash), Greenbush, MN “We all enjoy driving around during the summer and looking at good fields of wheat, soybeans and other crops,” says Terry. “Although this past summer had its challenges with weather, there were some excellent- looking fields.” “We like to see farmers show off their fields and the seeds they’ve planted,” said Andrew Schultz, CHS Ag Services sales manager. “I think that is worth recognizing.” “This sign contest was one of the few events we were able to hold this summer, and the response to it for a second year in the row tells me we need to make this an annual event,” says Kristy Horne Dunn. “This contest may become an annual event.” Grower: Duck Younggren Agronomist: Chip Olson
SEED 21 Grower: Curt Peterson Agronomist: Cole Zimmerman Grower: Blawat Farms Agronomist: Bryar Klopp Grower: Brent Riopelle Agronomist: Cole Zimmerman Grower: Ken Magnusson Agronomist: Cole Zimmerman Grower: Haugen Family Farms Agronomist: Bryar Klopp Grower: Mekash Farm Inc. Agronomist: Bryar Klopp Grower: Tracy Anderson TDA Agronomist: Cole Zimmerman Grower: Jason Smit Agronomist: Bryar Klopp
22 GRAIN “This is indeed a great honor, and there is a lot of credit to spread around. The credit begins with our Hazel employees.” –DuWayne Thompson, General Manager, CHS Northland Grain CHS Northland Grain’s Hazel elevator has been awarded Elevator of the Year in the U.S. for the 2019-2020 Crop Year.
GRAIN 23 CHS Northland Grain Honored by Railroad By DuWayne Thompson, General Manager, CHS Northland Grain Our Hazel grain terminal has received an award from the Canadian Pacific (CP) Railroad: Grain Elevator of the Year in the United States. According to Joan Hardy, the railroad’s vice-president of sales and marketing for grain and fertilizer, our Hazel elevator shipped 4,255 railcars of grain with the CP for 2019-2020. “The award is presented to the grain elevator that achieves high volumes from a single loading point while consistently demonstrating efficient railcar loading and a strong commitment to safety,” says Hardy. This is indeed a great honor, and there is a lot of credit to spread around. The credit begins with our Hazel employees. To accomplish loading 4,255 cars in one year, our employees exert a tremendous amount of effort on nights, weekends and holidays, sometimes working long 16-to-24-hour shifts. DuWayne Thompson Many times, we have employees come from other locations to help prep cars, open lids and run the locomotive. Steve Miller, our location manager, does a great job making sure everyone is on task and everything is ready to go. Most importantly, he keeps everyone safe when working the long shifts. I must mention Jeff Blom, our grain merchandiser, who coordinates our grain sales and rail freight to accommodate the sales. Jeff and Steve work closely together to make all of this happen! CP has been a good partner for CHS Northland Grain. They are continually trying to improve their systems, too! That helps us find market access for our grains to either exports or to flour mills and processors here in the United States.s What the award tells me is simple: we are doing a good job for our growers. We transfer grain into Hazel from our Oklee, Grygla, St. Hilaire, Roseau and Greenbush locations. Growers also haul directly into Hazel from as far away as 125 miles. So again, there are a lot of people who should be proud of this award as it takes all of us working together to make it happen.
24 LOCAL MARKETS The Big Soybean Export Program By Pat Knutson, Grain Merchandiser, CHS Mahnomen China came into our markets over the last 7-8 months and bought a lot of U.S. soybeans that they didn’t buy over the same period last year. The result was a rather good price rally, Danny Zima combines soybeans east of Waubon, Minnesota. both in the basis and in the futures. As an example, we’ve seen a good Room for corn after February $2.00/bu. rally in the cash price. These beans will be shipped September 2020 Corn prices have crept up, with premiums primarily through January 2021. in the deferred months. Part of that’s because the bean In the middle of bean harvest, the export program is so big, there’s just no room for corn. yields in our area are better than Most of the export capacity from September through Pat Knutson average. January is taken up with beans. What is unknown is whether China will come in and buy The industry should have more capacity to export corn more U.S. soybeans before switching over to South America. from February forward. Keep selling the deferred months Their bean harvest begins at the end of February or the and watch the export numbers to learn whether China beginning of March, depending on the planting date. keeps on buying corn. My advice is to watch the South American weather from this point on and have a good portion of your beans priced What about next year? by the end of February. Use a futures contract to lock in a profit on your 2021 production. We’re seeing historically good numbers — like we haven’t seen for two years — on all crops.
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26 GLOBAL MARKETS The Beat Goes On By Ami L. Heesch, Commodity Broker III, CHS Hedging LLC The summer of 2020 proved to be favorable for the of purchases, their imports could reach from 100.0 MMT to U.S. soybean crop. Condition ratings were some of the as high as 103.0 MMT. best seen in several years. The crop The South American soybean planting season is got hit with a terrible windstorm across here, and the weather has been mostly hot and dry. It is Iowa, although it may have been more expected to continue that way for a while longer. Brazil destructive to the corn crop than it was is expected to see a sizable increase in soybean acres to the soybean crop. The Western Corn resulting in a production figure around 133.0 MMT, up from Belt got hit with a couple of days of 126.0 MMT in 2019/20 and 119.0 MMT in 2018/19. The key freezing temperatures across parts of will be whether they get the moisture needed, during both the North and South Dakota, along with the planting season and the growing season. Ami L Heesch portions of Minnesota. U.S. exports have grown significantly over the past few The harvest began early with mostly months and are expected to continue as Brazil is thought favorable weather conditions. Early yield reports were to have nearly exhausted its supply of soybeans for this pretty decent. Many folks were saying the yields are better year. The USDA may need to increase total exports for than they thought (40-70 bushels per acre). There is concern that the later-planted beans may not yield as well, as they missed out on beneficial moisture in late August and September. Harvest was reported at 20% complete through Monday, Sept. 28, 2020. Conditions have been decent for harvesting the crop, with progress expected to be near 50% complete by October 5. China began purchasing U.S. soybeans at the end of May, for Oct./Nov./Dec. positions. There were many days of reported sales of U.S. soybeans to China or Unknown, with the lion’s share being for the 2020/21 marketing year. Some say they have yet to fulfill their Phase One Trade Agreement commitment, although they are said to be making a concerted effort to satisfy that commitment. China’s soybean imports for 2020/21 were estimated at 99.0 MMT in early September. Given their stepped-up pace
GLOBAL MARKETS 27 the U.S. as we near the current target of 2.125 billion bushels with a little over 10 months left in the marketing year. The key will be whether the U.S. can fulfill their current obligation, while continuing to make additional sales. In their September 30 Grain Stocks report, the USDA reported a much smaller Sept. 1 soybean stocks number than the trade was expecting. In the September 11 report, ending stocks for 2018/19 were reported at 909 million bushels, 2019/20 stocks were reported at 575 million bushels, and 2020/21 stocks were reported at 460 million bushels. With a Sept. 1 stocks figure of 523 million bushels, some believe that the ending stocks for the October 9 USDA Supply and Demand report could come in under 300 million bushels. As the rest of the year plays out, the soybean market should be supported from strong demand for U.S. soybeans (especially from China), a reduction in U.S. ending stocks, and a possible reduction to the South American soybean production (should the current hot/dry weather conditions persist into the end of the year and early next year). The November 2020 soybean futures have seen a strong rally from the mid-August low of $8.65 1/4 to the mid-September high of $10.46 3/4 ($1.81 1/2 run). It took a step back to a low of $9.85 3/4 at the end of September and rallied back to $10.35 after the Sept. 30 stocks report. The Funds hold an estimated net long position of 229k contracts (in soybeans) as of September 29 (record long is 254k contracts) which could leave the market vulnerable to a selloff. In the meantime, sell orders should be in place to take advantage of the current price strength. The soybean market is saying “sell beans” with a slight carry to January and an inverted market after that. Disclaimer: This material has been prepared by a sales or trading employee or agent of CHS Hedging LLC and should be considered a solicitation. This communication may contain privileged and/or confidential information and is intended only for the use of the individual or entity to which it is addressed. If the reader of this message is not the intended recipient, you are hereby notified that any unauthorized dissemination, distribution, and/or use of this communication is strictly prohibited. CHS Hedging LLC makes no representation or warranty regarding the correctness of any information contained herein, or the appropriateness of any transaction for any person. Nothing herein shall be construed as a recommendation to buy or sell any commodity contract.
PO Box 128 St. Hilaire, MN 56754 Protien Premiums Back — for Now By Pat Knutson, Grain Merchandiser, CHS Mahnomen The 2020 wheat crop is in the bin. It appears to have time, there is a lot of U.S. wheat, so the market is very been an average crop, or in some areas a little better than fragile. If too much wheat hits the market all at once, we’ll average. There was a variety of qualities this year — some see premiums back off. high protein and some low protein — and for the first time It will be important for growers to exercise restraint and in a couple of years the wheat market is actually offering sell their wheat a little at a time, rather than selling the protein premiums. whole crop. In other words, do a cash contract and lock in Export demand for wheat appears good. Drought in the a price, rather than doing a futures or basis contract. Black Sea region has created some demand. At the same
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