108 years Strong

Comfrey • Morgan • Morton • Springfield • Wabasso

www.HarvestLand.com

Vol. 14 No. 4 • December 2012

Purposeful Planning Delivers Successful YearWe have just completed our year-end financial audit, and the board has met with the auditors. The numbers confirm another strong performance for Harvest Land Cooperative, with all divisions growing and operating profitably.

Here are a few of the financial highlights:SaleS $263,000,000local earningS $3,700,000Patronage refundS received $2,700,000net margin after taxeS $6,100,000

Patronage rates 2012caSh Patronage 50% $1,676,527equity retirementS 65 and older $902,970ScholarShiPS Paid $21,700

CaPital ProjeCts/PurChases 2012SPringfield terminal croP nutrient blending and Storage $1,000,000agronomy oPerationS cuStom aPPlication equiPment $1,665,000

While on the subject of finances, please check your tax ID numbers when you receive your 1099s in January. If we do not have your number, or it is incorrect, please notify us as soon as possible.

Pursuing our purposeThe theme for this year’s annual statements is our purpose statement, “Committed to Our Owners’ Success.” We achieve success as an organization because our focus is on our owners and your success. Our decision-making is always guided by this question: Will this benefit our owners and help build our relation-ship with them?

As we look back at our performance at year’s end, this is a natural time to emphasize one of our core values—financial strength and stability. This is particularly important in a volatile world and ag economy, so we

have put two primary strategies in place to help us deliver on this core value.

First, we are committed to deliv-ering a consistent dividend and equity payout while providing a diversified portfolio of products, services, and knowledge. We are also committed to timely, efficient market access.

Second, we will maintain an internal risk-management strategy to protect Harvest Land Cooperative, and at the same time provide external risk management resources to protect our owners.

Purpose and focus are very important ingredients in our success. But it is the commitment of the board of directors, management team, employees, and you, our owners, that translates this purpose into reality. Thank you for another successful year. I look forward to seeing you at the annual meeting on January 7 in Springfield. n

agqueSt inSurance agency iS an equal oPPortunity Provider

By DENNIS SCHREIERGENERAL MANAGER

Record-Setting Fall

The early harvest was a real shot in the arm for fall application. When the pace finally slows, we will have covered a record number of acres since the crops came out. It’s always a good position to be in, because you never know what spring will look like.

We will be adding application equipment to help us continue to meet your need for application services. Some of that new equipment will also enable us to offer a new service—custom sidedressing 32%.

With the storage and blending expansion completed during the past few years, we’ve greatly increased our blending and loadout speed. Now we’ve added new tenders and applicators to convert that capacity into faster service for our customers. We’re ready to handle whatever spring has in store. n

By JoEL KREtSCHopERAtIoNS

Page 2 ©2010 Harvest Land Cooperative. All Rights Reserved. Published in partnership with VistaComm® (www.VistaComm.com).Page 2 ©2012 Harvest Land Cooperative. All Rights Reserved. Published in partnership with VistaComm® (www.VistaComm.com).

In General, a Good HarvestThough expectations weren’t too high to begin with, harvest in our trade territory was generally better than most people anticipated. Of course, some areas were hard hit by drought and by wind, which put some corn on the ground.

We shipped several bean trains this fall for export with one or two to go, but only one corn train as the west coast bean program was (and still is) in high gear. After the export bean program begins to wind down we expect corn exports to pick up as world feed grains are fairly tight. At this time we

expect to begin shipping corn trains to the west coast export market in late winter.

In the meantime, the domestic market has seen steady demand for feed grains and the ethanol grind is down from last year’s 5 billion bushels, with the USDA projecting a 4.5- billion-bushel grind this crop year.

Finally, I want to mention that long-time grain driver Clem Wersal is retiring in December after 15 years with Harvest Land Coopera-tive. We wish you all the best in retirement Clem. nBy KEvIN DEBERG

GRAIN MERCHANDISER

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Keeping Tabs on Farm Bill

The 2012 farm bill has every person in the agricultural industry waiting on the edge of their seats for the House of Representative to take action! The 2012 farm bill passed the Senate in June 2012 with bipartisan support but has not yet received a vote in the House.

AgQuest and Harvest Land are partnering to bring you the latest news and information

about the 2012 farm bill and potential changes in your biggest risk management tool, crop insurance.

We will be hosting Producer Outlook meetings in January. Please continue to watch for more information about dates, times, and locations on Facebook and our websites: www.AgQuest.biz and www.harvestland.com for breaking news. n

Parents—Your Cooperative Can Help With CollegeIf you’re a Harvest Land patron, your equity in the coopera-tive can help fund your student’s college education. College students can receive up to 25% of their parents’ revolving fund equity—up to $500 maximum per year per student.

To qualify, the student’s parents must be members in good standing with Harvest Land Cooperative. The student must be enrolled in an accredited, post-secondary

university, technical college, or business college. The student must be a full-time student, as defined by the institution they are attending. A copy of a certificate of enrollment or grade transcript is required.

The Harvest Land scholarship program is just another benefit of the cooperative way of doing business. n

Ready to Help You Grow

It’s been a good year for the Harvest Land feed division, highlighted by the addition of swine specialist Kevin Langemo. Kevin is available to help you grow your operation, and he’s been out in the country meeting some of you already. If you’re in the swine business, Kevin can be a valuable resource for you.

We also have barns available and can offer several pig sourcing options and solid risk

management. We have plenty of capacity to handle additional feed business, so if you’re looking to expand—or just want to make a positive change—consider Harvest Land.

Finally, I want to mention that long-time feed delivery driver Ron Turbes is retiring in December after 31 years with Harvest Land. Fortunately, we’re going to continue to see him on a part-time basis. We wish him all the best in retirement. n

By GLENN FISHER, FEED DIvISIoN MANAGER

HARVEST LAND ANNUAL MEETINGMonday, January 7th, 12:00-Lunch, 1:00 Meeting at the Springfield Community Center

By KAtHy MAINERAGquESt INSuRANCE oFFICE MANAGER

Increased weed and insect tolerance to certain products and traits in 2012 created increased demand for herbicides and insec-ticides to combat these issues. Products that became extremely hard to secure last year included the herbicides Liberty®, Status®, and Callisto®, just to name a few. Also, insecticides like Force® and any SmartBox® products basically sold out during the early spring period.

As the season progressed into late June and early July, reports of weed and insect infestations became com-monplace. Waterhemp resistance and corn rootworm infestations were the two most reported problems.

Preparing for 2013Looking ahead to the 2013 growing season, the herbi-cides mentioned above—and many of the pre-plant and post-emerge soybean products such as Authority® First and Flextar®—are expected to be in very high demand. And we expect demand to rise for all at-planting insec-ticides. Some will see sales increase 3 to 4 times from 2012 levels. It is probable that some of the products

above could reach sold-out or allocated positions as early as December 2012.

Early planning for expected needs of these (as well as other) products will be critical as we attempt to secure adequate supplies. The sooner our agronomy staff knows your intentions, the greater success we will have in securing those products at the most com-petitive price. Putting together accurate forecasts with your account manager will ensure we have your needs covered without adding to supply issues by over-book-ing.

As with any product, when demand increases, price generally increases also. To secure early pricing, our agronomy department will attempt to take possession of as much product as possible to meet our projected needs. However, our warehouse space is limited. We may ask you to take early possession of certain limited products, enabling us to secure sufficient quantities of all products at competitive prices.

Please take the time to meet with your account manager in the next few weeks to discuss your plans for next season. That will give us the best opportunity to meet your needs. n

Increased Demand Makes Crop-Protection Planning Essential

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By tIM WoELFEL CRop pRotECtIoN MANAGER

Day PlannerOne of the best features of being a manager is that you also get to manage yourself. “I think what I enjoy most about my position is that I have the ability to plan my own schedule when it comes to day-to-day duties,” states Neil Roiger, assistant manager of Harvest Land’s Comfrey location.

Neil, a lifelong Springfield resident, grew up on a farm eight miles southwest of town. He earned his A.S. degree in engineering from

Minnesota West in 2007 and his A.A.S. degree in agronomy from South Central College in 2011. He joined the Harvest Land team in April 2011.

Editor’s note: In his free time, Neil enjoys woodworking, golf, and spending time with family and friends. His free time may be a bit more limited now, since he and his wife, Alissa, just welcomed their first child, daughter Addilynn, in November. n

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Director Profile - Roger KettnerWith two decades of experience as a member of the Harvest Land Cooperative board of directors, Roger Kettner has been a part of tremendous change and growth—both in the cooperative and in the ag industry. A board member since 1992, Roger now chairs the Harvest Land board.

“The board of directors of a coop-erative is unique in that the members are all customers and owners and active in the industry we serve,” Roger says. “We serve as a voice for the farmers we represent, and that’s important. We don’t manage the cooperative, so one of our primary duties is to hire the best manage-ment possible to guide the company. And we provide input to that management regarding the needs of our members and try to help deliver what our patrons are asking for.”

Roger and his wife, Sandy (who works for AgQuest), have a row-crop and cow/calf operation north of

Morgan. Their youngest son, Dan, recently joined the farming operation. Son Alex, his wife, Kendra, and their three-year-old daughter Ella live in South Dakota, where Alex works in the fluid power industry.

Equipped to leadThe cooperative provides training opportunities for directors, and Roger says those opportunities become more important as the cooperative grows.

“These have been good times for agriculture, but there are challenges too,” he notes. “For farmers and for cooperatives, rising input costs and volatile commodity markets are major concerns. Training isn’t mandatory, but I believe it helps us better guide the cooperative into the future.”

With great challenge comes great opportunity. For Roger, that opportunity is personal. “Dan will be the fifth generation of Kettner to farm,” he says. “I’m proud of what I do, and I think the U.S. is beginning to understand how important ag is to the economy. We have a chance to start the next generation of farmers out on the right foot. That’s exciting to me.”

In his spare time, Roger enjoys hunting, fishing, and trail riding. “I know it’s my job, but I also consider my cattle an interest. I really get a lot of satisfaction from working with them.” n

Strong Foundation Yields Solid Organization

We have just completed another successful year at Harvest Land. As Dennis mentioned in his lead article, Harvest Land Cooperative turned in a strong performance, with local earnings of $3,700,000. Even better, with our subsidiary companies, AgQuest and Northland Capital, Harvest Land had consolidated local earnings of $8,643,629. The vision of a financially strong, diversified company that doesn’t rely on any one division for our success continues to be a reality. Every division of the company, whether it was grain, agronomy, feed, finance, energy, or leasing, made an important contribution this year.

We will continue to build upon the strong legacy that everyone at Harvest Land has worked so hard to achieve. This can only happen through building strong relationships that stand the test of time

and having employees that are truly “Committed to Our Owners’ Success!”

We believe that our people are what set this coopera-tive apart. This includes your board of directors. You have a dedicated board that take their responsibilities of leading Harvest Land very seriously. So, to help you to get to know each of the directors a little better, we will be doing a director spotlight in the quarterly newsletters.

The first director we are featuring is our board chairman, Roger Kettner. Roger has been on the Harvest Land board since 1992, and I want to per-sonally thank him for his many years of support and contribution to Harvest Land’s success. n

By DAvE StuK, CEo

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By StEvE BACHAGquESt SENIoR BuSINESS RELAtIoNSHIp MANAGER

Don’t Wait to Renew

I can’t think of a better way to start this article than by officially introducing Melissa Robertson. You can read more about her below. As our new administra-tive assistant, she is always available—even when Mark and I are not. In many cases, she’ll be able to answer your questions or track that answer down. She can also schedule appointments with either of us. We’re very excited to have her on board. Melissa is located in the Springfield office and can be reached at 507-723-7378.

We’re well into the renewal process now and working to get funding in place for 2013 and 2014. Our early fall means you can get a jump on putting your final numbers together. As soon as you get them, come in, and we can put your 2013 operating loan in place for all your purchases, whether at Harvest Land or elsewhere. And, with the need for forward contracting inputs, we can also get 2014 financing in place.

Here are the items we’ll need to update or receive from you for the 2013/2014 crop years:• 2012 year-end balance sheet (most important)

• Personaland/orcorporatetaxreturns

• 2013cashflow

• Mostrecentcropyear’sinsurancecoverage

• Copyofdriver’slicense

• Marketingcontracts

Also, if your marketing plans include selling a substan-tial portion of your grain after January 31, 2013, and you have a balance on your 2012 operating loan, you’ll need to come and see us as soon as possible. We’ll discuss some options.

Real estate tooI know many of you think of AgQuest as your best source for operating loans, but we’re also very competi-tive when it comes to real estate loans. If you’re looking for a real estate loan, come talk to us and find out how we compare to other lenders. I think you’ll be pleasantly surprised. n

That’s not fair, really. Gatekeepers are supposed to limit access to the people they work for. Melissa Robertson actually strives to make it easier to get in touch with Steve Bach and Mark Kubesh, AgQuest business relationships managers.

Since September 10, the outgoing Melissa has served as the constant point of contact for Steve and Mark, who maintain a full schedule and spend a fair amount of time on the road. “I can do just about anything you need, from scheduling appointments with Mark or Steve to answering questions,” Melissa says. “If I don’t know the answer, I’ll find it for you.”

A marketing major with a degree from St. Cloud State, Melissa worked for American Family Insurance prior to joining the AgQuest team. “This is much different, but the job is a lot of fun,” she says. The work is constantly changing, and I love that. I love working on one thing and have something else walk in the door. And I like the team approach and the fact that everyone is willing to help out.”

Editor’s note: Melissa and her husband, Justin, reside in Springfield, where Justin is a police officer. They have two children, Jazmine and Jaxon. Both Melissa and Justin are from the area, so they spend most of their free time with their children and extended family. Melissa’s most interesting experience: Driving in the Virgin Islands. “My first trip outside the U.S. was to St. Thomas. It’s hilly, they drive on the wrong side of the road, and they drive fast!” n

The Gatekeeper

Steve Bach, Mark Kubesh, and Melissa

Robertson

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Lessons From 2012This was definitely a good year to judge the agronomic char-acteristics of your hybrids. We were pleased to see how well the hybrids we placed in your fields stood up to the extreme growing conditions many of you encoun-tered this year. Characteristics like standability really had an impact on final yields.

Though most of you did a good job managing for Goss’s Wilt in 2012, we did experience some

struggles with Western corn rootworm. While you should talk to your account manager about managing rootworm in your situation, we are suggesting the use of SmartStax® hybrids on all corn-on-corn acres in 2013. If you’re going to plant any hybrid with a single mode of action below-ground on corn-on-corn ground, we recommend you use an insecticide as well.

Acres up, supplies downEverything is indicating a lot of corn acres for 2013, and that will make drought-tightened supplies of top hybrids even tighter. The bottom line: Don’t wait. If you haven’t been in to see us, get your seed order in right away.

There’s a good program in place with NK seed for the coming year. If you buy either 24 or 48 units of NK corn, you’ll receive an attractive discount on Force 3G or Force CS insecticide. It’s a chance for you to save some money and plant some excellent seed. Get the details from your account manager.

Seed treatment earned its keep again this year. Keep in mind that seed treatments don’t enhance yield, but offer protection that allows the seed to deliver on its full yield potential. All SmartStax seed is treated with Poncho®/ VOTiVO® and Acceleron®. We offer Apron® fungicide and Acceleron seed treatment, as well as Trident™ liquid and QuickRoots™ granular inoculants.

Finally, I want to close with a plug for the Harvest Max program. We added more great data to our database this year—local, relevant data that is only available to Harvest Max members. It’s the kind of information that can make a real difference in your farming operation, so talk to your account manager about becoming part of the Harvest Max program. n

By BREtt BRAuLICK AND DouG JESKE

Western corn rootworm

Off the Road, Still Behind the Wheel

Driving has been a part of Bob Harazin’s life since he was 18. Now’s he’s behind the wheel again, but staying closer to home.

Bob joined the Harvest Land staff in October 2011, working part-time for the agronomy department. When a full-time opportunity to drive for the feed department came open last winter, Bob made the switch, and has been enjoying his time on the road.

“A neighbor got me started driving over the road when I was 18,” Bob recalls. “I was a long-haul driver for several years and saw a lot of country. But when you have a family, it’s hard to be on the road.” So Bob, who grew up in Olivia, worked at a rendering plant, in

a quarry, and then for a construction firm. Now he’s on the road again and loving it.

“It’s close to home, and I work with a great bunch of people,” Bob states. “I’m never bored. This is a really good deal for me.”

Editor’s note: Bob has lived in the Morgan area for 30+ years. He and his wife, Marilyn, are empty-nesters, with sons Shane and Tory and daughter Shannon having flown the coop. Bob keeps busy go-cart racing with some of their five grandchildren and stock car racing with Shane and Tory. “I’m the money boss,” Bob says. “It keeps me out of trouble most weekends.” n

PO Box 278Morgan, MN 56266-0278

Licensed Agquest cROP insuRAnce Agents

MORGAN 877-626-7453 Lynn Button, Kathy Mainer, Mark Kubesh, Cheryl Manderfeld 507-249-3196 Pat Macht, Dennis Schreier, Mark Vogel, Matt Pietig COMFREY 507-877-2441 Rick KastnerMORTON 507-697-6113 Todd Beran, Keegan MammenOLIVIA 800-463-3616 Sheri Bakker, Amber WeberSPRINGFIELD 507-723-7350 Jim Boyle, Joel Heiling, Tim WoelfelWABASSO 507-342-5184 Jon Christensen

Learning From Last Year

Now that the 2012 crop season is behind us it’s amazing to look back at all the challenges we faced throughout the growing season and the yields we were able to obtain. As we enter the winter months we begin to think about the past growing season. What went right? What went wrong? What hybrid performed the best? What would have I done differently? What will I do again next year?

Our ability to manage risk and effectively place high- priced inputs is now more important than ever. With Harvest Max our account managers have the tools to help you manage and track all of these things. Growers that consistently raise more bushels than their neighbors year in and year out are the ones that are managing risks and decreasing yield limiting factors.

Proper soil fertility, nutrient placement, and hybrid placement are just some of the consid-erations that should be made when looking ahead to the 2013 growing season. The ability to match the right genetics, on the right soil type at the right planting population within each individual yield environment, allows us to better manage risk and reduce the effects that Mother Nature has on that crop.

On December 10th we held our annual Harvest Max meeting. Some of the topics we covered included yield

by soil type, hybrid, and population, Ascend Trial information, and other lessons learned from 2012. We also introduced our 300 bushel corn club and century club for soybeans. If this is something that interests you, contact your account manager or me for details.

New for this year, we dedicated the afternoon session to Tim Eyrich, Winfield’s Solutions Plant Nutritionist. Tim answered questions regarding fertility, plant nutrition, and manage-ment techniques that will help growers take yields to the next level. Look for more guest speakers at future meetings to help answer questions about achieving higher yields. n

agqueSt inSurance agency iS an equal oPPortunity Provider

By MAtt pIEtIG HARvESt MAx