Category Archives: Grains

Commodity Classic Launches App

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comm-classic-appThe 18th Annual Commodity Classic has launched their first-ever mobile app for this year’s event in Kissimmee, Fl. The app will allow attendees to access information, receive messages and engage in social media from their smart phones and tablets. You can even make your own schedules, take notes, lookup session and event times and navigate with maps.

Visit www.commondityclassic.com/app to download it now or check out the App Store on your mobile device and search Commodity Classic. I just did and can’t wait to attend my first ever Commodity Classic. And the best part about it is it’s free!

In less than two weeks, soybean, corn, wheat and sorghum growers will be traveling to the far Southeast from across the county to take in the sights of Kissimmee, Fl. Producers will be educated about important agricultural issues, enlightened by new product rollouts and entertained by all the events coordinators have planned.

“The innovation you’ll witness and information you’ll gather at Commodity Classic will absolutely change the way you farm,” said Commodity Classic co-Chair Bob Worth. “Agriculture faces new challenges every year, and Commodity Classic’s educational sessions and opportunities to speak with other growers and industry leaders will arm attendees with the tools they need to overcome these challenges and increase the profitability of their farming operation.”

The 2013 Commodity Classic takes place February 28-March 2 at the Gaylord Palms Resort & Convention Center and the Orlando World Center Marriott in Kissimmee, Fla., and is presented annually by the National Corn Growers Association, American Soybean Association, National Association of Wheat Growers and National Sorghum Producers.

The Advantage of AgVantage FS

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The first stop on the GROWMARK media tour through Iowa last week was in the little town of Chapin, just south of Mason City, where the main work horse grain facility of AgVantage FS is located.

The facility handles 10-12 million bushels a year – about 40% of the co-op’s total. “We’re an operating division of GROWMARK,” explained Grain Marketing & Operations Manager Kevin Gray, pictured below left with regional grain manager Barney Bartels. “We cover 32 counties, 27 in Iowa and five in southeast Minnesota, stretching from the Mississippi River to Alexander on the west side.”

Kevin says the co-op covers a large geography with 14 grain elevator locations. “Customer service is the number one priority for us,” Kevin said. “We want to keep our customers profitable, we want to make sure they’re competitive, we try to reduce their risk and we want to make doing business with AgVantage grain division as comfortable and easy as possible.”

Listen to my interview with Kevin here: Interview with Kevin Gray

Despite the drought this year, the facility still managed to bring in quite a bit of grain, since the impact of the drought on the region can be summed up in one word – variable. “We’ve seen a range from 30 bushels per acre (corn) to basically 130 bushels per acre,” said Barney. “You go to the south, we’ve seen a range of 100-200 bushels an acre.”

Barney says the original bins at the Chapin facility were put up in 2003, with another 2.2 million bushels of space added in 2006. Grain from the AgVantage FS supplies a number of ethanol plants in the region and much of it is sent southwest for dairy markets.

Listen to my interview with Barney here: Interview with Barney Bartels

For more detail, listen to Kevin’s overview here: AgVantage FS Chapin Grain Facility

GROWMARK Iowa Media Tour Photos

Farm Bill’s Effect On US Grains

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You may believe the farm bill doesn’t effect you, but you might be surprised to find out that it covers more than you think. It was a hot topic during National Association of Farm Broadcasting’s Trade Talk. While sitting down with U.S. Grains Council’s President and CEO, Tom Sleight, I was reminded how intricate this farm bill is.

“It’s an interesting dilemma for us. The farm bill is not well known and one reason to get the farm bill moving. Public/private partnerships between US Grains Council take checkoff dollars and match that with business contributions. Thats matched again by USDA funding. That USDA funding was no longer authorized when the farm bill lapsed on October 1. So, we are working very closely with USDA to keep our offices open as long as we can. If the farm bill doesn’t get passed we might be forced with furlowing employees and closing offices come sometime in February.”

Tom said we need to talk more openly about the importance of trade to US agriculture. Many people don’t realize this public/private partnership funding is included in the farm bill.

The US Grains Council is partnered with 29 different checkoff entities for corn, sorghum and barley throughout the United States. But also with around 100 agribusinesses and grain exporting companies. These groups all have the common interest of making trade work around the world.

Listen to my complete interview with Tom here: Tom Sleight - US Grains Council

2012 NAFB Convention Photo Album

Fund Established for Injured Kansas Grains Exec

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A farmer, friend and colleague of the agriculture industry is in critical condition at a Springfield, Missouri hospital and a fund has now been set up to help his family with related expenses.

Kansas Corn and Sorghum Growers executive director Jere White was involved in a motorcycle accident on September 28 in northwest Arkansas. Jere is an avid motorcyclist and is pictured here at the 2011 Sturgis Motorcycle Rally with his son Robert, who is Director of Market Development for the Renewable Fuels Association. Chuck took that photo and it’s one that Robert has been using on his Facebook page. It really shows Jere’s character as a fun-lover and father.

Jere was wearing a helmet in the crash but still suffered a head injury and his family has been with him constantly in Springfield since the accident. They have set up a Facebook page for Jere where updates can be found and comments of encouragement can be posted. The link is http://www.facebook.com/GetWellJere.

Jere’s colleagues with the Kansas grains groups are helping out with expenses for the family by setting up a fund for donations.

Donations to the fund can be sent to:
Jere White Fund
c/o Bank of Greeley
PO Box 80
Greeley, KS 66033

Cards for Jere and his family will be collected at the association office and may be mailed to:
Jere White
KCGA/KGSPA
PO Box 446
Garnett, KS 66032

Please join us in praying for Jere’s complete recovery and the strength of his family for support.

Sleight Selected as USGC President and CEO

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The U.S. Grains Council announced the selection of Thomas N. Sleight as president and CEO to replace the retiring Thomas C. Dorr. Sleight initially joined the Council in 1983 and has served in multiple capacities both in Washington, D.C., headquarters and overseas. After leaving for stints with other agricultural organizations, he returned to the Council in November 2010 as vice president of operations and membership. Sleight’s cumulative service with the Council spans 18 years and includes successful assignments in program operations in the Washington, D.C., office, international program direction in the field, communications, membership and administrative functions.

“The Council is expanding its reach and focusing on new priorities and strategic direction set by the Board of Directors,” said Sleight. “We have made great progress in recent years and I look forward to continuing to create value for U.S. producers and agribusinesses.”

Total Grain and Fertilizer on Track

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Total Grain Marketing (TGM) handled 70 million bushels of grain at its 31 locations in Illinois last year and this year is likely to be even more.

During the recent GROWMARK media tour, we visited TGM and South Central FS in Casey (that’s pronounced Cay-zee) and learned about that facility in particular which was created when the two entities joined in 2010 as part of the GROWMARK and FS member companies partnership that was started in 2006.

“We have an 8 million bushel elevator, it is on the CSX railroad, we are a 90 car unit train express load shipper, and handle about 16 million bushels of grain a year,” South Central FS CEO Randy Handel said. That express loading process can rival a pit stop in the Indy Car Series. “We have 15 hours from when the train comes to load it, grade it and put the train back together and have it ready for the CSX to take,” he says, noting that they can load 1,000 bushels a minute – or 90 cars in six hours or less.

Randy says the venture between South Central and TGM has been very successful. “It’s been a win-win for our local grain producer in that it has helped enhance their margin, it’s been profitable for us as a company, but we’re a local cooperative so in turn it’s profitable for our owners and members,” he said. Most of the grain goes to the southeast to the poultry market and ADM and Bungee on the bean market.

We also got to visit the brand new GROWMARK-owned fertilizer facility on the same site. “It is a 25,000 ton dry fertilizer blend facility and a 10,000 ton solution facility and this is the first spring we are using it,” Randy said. The fertilizer facility also benefits from being right on the rail line. “It’s a very good location being on the CSX track and it’s good sharing the resources with our grain elevator and it’s a very strategic location.”

Listen to my interview with Randy Handel here: South Central FS CEO Randy Handel

See more photos from the TGM visit here: GROWMARK 2012 Media Day

GROWMARK Offers Grain Bin Safety Tips

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Every year there are dozens of grain bin accidents reported across the Corn Belt, with far too many ending in fatalities.

GROWMARK grain systems operations manager Randy Holthaus says the harvest season is an especially dangerous time on the farm around grain bins. “During the harvest, with the need to get it in and get it done, people get in a hurry and work long hours,” he said. “They’re running non-stop to get the crop out so fatigue plays in as well.”

Randy says they recommend that growers never enter a grain bin if at all possible, but realistically he knows there are times when it might be necessary. “Don’t get into the bin unless you lock out the power and make sure someone knows you are getting in to the bin,” he says, adding that the person on the outside should ideally be able to observe you getting in and out and have a rescue line tied to you.

The biggest hazards often occur when someone gets trapped in a bin and another person automatically tries to help. “The first reaction of family members or co-workers is to get in the bin to help,” which Randy says often results in making a bad situation worse by sending grain cascading on the victim and totally engulfing them. “Getting into the bin with a victim is twice as bad because you are not only endangering yourself but you may be creating a bigger problem for the person in the bin.”

The buddy on the outside should instead make sure the power is shut off, call 911 and possibly try to get a line thrown to the victim if that can be done safely. “The main thing is, you need professional help,” he stresses.

Bottom line – be alert, be aware and just be careful out there!

Listen to or download my interview with Randy here: Randy Holthaus Interview

GROWMARK Grain Division Growth

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The GROWMARK Grain Division is making news.

First off, the division will have a new VP as of November 1. Brent Ericson has been named Vice President, Grain, replacing Davis Anderson, who retired in September.

As VP, Grain, Ericson will be responsible for the overall management, oversight, support and growth of GROWMARK’s grain business, which includes 80 grain members and companies inIllinois, Wisconsin, and Iowa. Combined, the 80 companies market approximately 1 billion bushels of grain and oilseed annually into river, rail, and processor markets.

The grain division has also announced a new venture.

Heritage FS, Gilman, has partnered with GROWMARK to create EASTERN GRAIN MARKETING, LLC. (EGM). The company’s main office is located in Gilman.

Dana Robinson, EGM General Manager, said the venture will strengthen the package of grain services offered to farmers in eastern Illinois. ‘EGM combines our local knowledge and expertise with sufficient resources to expand grain marketing alternatives and grain handling services for the growers in eastern Illinois. This adds value to the crops grown in eastern Illinois and that added value will be realized by the growers through higher payments for their crop.’

Growers will have greater access to grain markets via a rail shuttle loader EGM will construct in western Kankakee County. Approximately two million bushels of storage space, which EGM will construct, will be located at the shuttle location.

EGM is the fourth regional grain marketing venture formed in Illinois between FS member cooperatives and GROWMARK. Total Grain Marketing, LLC was launched in 2006, WESTERN GRAIN MARKETING, LLC was formed in 2007; and NORTHERN GRAIN MARKETING, LLC was formed in 2009.

Promoting Grain Bin Safety

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Grain bin accidents and fatalities on the farm have been on the increase in recent years, but more attention to some simple safety rules could reverse that trend.

The National Corn Growers Association (NCGA) and the research and education arm of the National Grain and Feed Association (NGFA) recently unveiled a new video to promote awareness about grain bin safety on the farm.

The two organizations teamed up in November to develop the video in response to an increase in U.S. fatalities and injuries associated with entry into grain bins.

“In 2010 we saw a record number of farmers becoming engulfed in grain bins and we decided it was time to have a proactive role in creating awareness about the serious nature of this issue,” NCGA President Bart Schott, a grower from Kulm, N.D., said. “We hope that this video makes farmers stop and think twice before the next time they put themselves in danger.”

The new video, shot on location in several states, provides a wide range of information from prevention tips and background data on grain bin accidents. The project also involved interviews with professionals in the fields of grain bin safety research and rescue to provide as much information to viewers as possible.

The video is available at NCGA.com and on NCGA’s YouTube channel and is also being distributed by NCGA to affiliated farm organizations. The NGFA also has made the video available on its website at www.ngfa.org, and will be encouraging its grain elevator members to distribute it to farmer-customers.

You can also watch it here:

Getting to Know GROWMARK – MID-CO Commodities

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GROWMARK is a multi-layered cooperative with five wholly or partially-owned subsidiaries, six retail subsidiary divisions, and controlling interests in several related endeavors – all aimed at improving the profitability of its member-owners. As part of our series on getting to know GROWMARK, we’re getting to know not just the company, but the people who make it all happen.

MID-CO COMMODITIES is a GROWMARK subsidiary that offers professional price-risk management services for all agricultural commodities, including market information analyzed by experienced commodity risk consultants, as well as providing futures and options execution on major exchanges.

Bryce Stremming is one of MID-CO’s Commodity Risk Consultants. “What MID-CO keys on is basis trading within the grain industry and as the market moves up and down, you have different opportunities with the basis on whether it is improving or not,” Bryce told Agwired during a recent interview.

Bryce says what is most important to him is what his customers want and need at any particular point in time. “What is their risk tolerance, what are they looking for, and making sure that we tailor our recommendations to what their comfort level is,” he says. “MID-CO views each customer as an individual and we always do what is in the best interest of the customer.”

Get to know MID-CO, GROWMARK and Bryce a little better by listening to Chuck’s interview here: Bryce Stremming Interview

Industry-wide Response to China’s Anti-Dumping Case

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The U.S. Grains Council is coordinating an industry-wide registration process for interested U.S. companies in response to China’s recently announced anti-dumping charges against imports of U.S. distiller’s dried grains. The deadline for registration is extremely short, a process further complicated by the need to translate all registrations into Chinese.

U.S. companies that wish to participate in this industry effort should e-mail the Council at grains@grains.org with contact information by COB Friday, Jan. 7, 2011. From there, legal counsel will contact each participant, provide the necessary registration form and instructions. The registration form must be completed and returned to the law firm by COB Monday, Jan. 10. From there, the law firm will assume responsibility for translation and submission to China’s Ministry of Commerce by its Jan. 17 Beijing deadline.

More information can be found on the Council’s website, www.grains.org.

Reaction to USDA Crop Forecast

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usdaBoth corn and soybean production for this year were cut in this month’s crop report out this morning from USDA. Corn production is forecast at 12.7 billion bushels, down 4 percent from the September forecast and down 3 percent from last year’s record production of 13.1 billion bushels. Soybean production is forecast at a record high 3.41 billion bushels, down 2 percent from September but 1 percent above last year.

The industry was expecting the corn forecast to be lowered, but it was the amount of the decrease that caught the industry by surprise, according to John Anderson, an economist with the American Farm Bureau Federation.

“This is a pretty sizable drop in production,” Anderson said. “We saw a really big drop in USDA’s forecasted average yield for corn because of adverse weather in the big corn states of Illinois, Iowa and Indiana. USDA is forecasting a national average yield of 155.8 bushels per acre, compared to 162.5 bushels per acre in September’s report. A 6.7 bushel drop in yield is pretty significant.”

On the Minneapolis Grain Exchange monthly conference call featuring commentary on the USDA report, Peter Georgantones from ITS also expressed surprise at the new forecast, predicting it will lead to $6.00/bu corn, “pretty easily now.” Market reaction was definitely higher on Friday with December corn closing up 30 cents at $5.28 a bushel, the highest in over two years.

tom dorrThe latest supply-demand numbers reflecting the new forecast show a decrease in stocks, increase in feed use, decrease in exports and ethanol about the same. At a seminar in Chicago promoting exports of the ethanol by-product distiller’s dried grains with solubles (DDGS), U.S. Grains Council President and CEO Tom Dorr was not too concerned about the report. “I’ve been a farmer most of my life and the thing that I know is that farmers more often than not, swim in surpluses, they love dealing with shortfalls and they’ll produce our way out of this very quickly,” Dorr said.

Increased use of corn for ethanol has created more than 30 million metric tons of DDGS, a high-value feed product for domestic and international livestock producers. Initial 2010 export projections of 6.2 million tons of DDGS will be surpassed this calendar year as the United States gears up to export approximately 8 million tons.

Listen to or download an interview that Chuck did with Dorr reacting to the report today: Tom Dorr Interview

Interact With International Grains Buyers

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usgcOne of my upcoming stops on the agriblogging highway will be the U.S. Grains Council and Renewable Fuels Assocation, Export Exchange. The event is taking place October 6-8 in Chicago, IL. If you’re in the grains business, especially dealing with DDGS then this is the place to meet with international buyers. I spoke with USGC CEO Tom Dorr about the event. He says that there will be more than 150 international buyers networking with over 300 U.S. producers and others involved in the industry. He says it’s a continuation of a series of programs that began about four years ago.

The program is designed to allow people to make connections and better understand the product. This is the first time the Grains Council has had a sponsor like the RFA. Another new thing this year is a focus on the coarse grains markets due to the global demand growth which has stimulated DDGS exports. Tom says those exports have grown from near zero in 2004 to over 6 million tons for 2009 and they’re growing.

You can listen to my interview with Tom here: Tom Dorr Interview

The Export Exchange 2010 is uniquely focused on connecting international buyers of DDGS and coarse grains with the U.S. market. The Council is providing sponsorship for the attendance of targeted international trade teams from more than 25 countries. These participants represent nearly 80 percent of the global export market for DDGS and coarse grains. The conference will address critical issues facing U.S. exports and seek to educate and build awareness of U.S. DDGS and coarse grains among international buyers.

Here are some resource links:

Agenda
Registration
Hotel
Media

Register for Export Exchange

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Registration is now open for the Export Exchange 2010, an international trade conference focused around the export of U.S. coarse grains and the ethanol co-product distillers dried grains with solubles (DDGS).

usgcThe event is co-sponsored by the Renewable Fuels Association and the U.S. Grains Council and will bring together more than 150 international buyers of U.S. DDGS and coarse grains with more than 300 U.S. producers and agribusinesses. “We are excited to have the Renewable Fuels Association co-sponsor the Export Exchange 2010,” said USGC President and CEO Thomas C. Dorr. “The burgeoning world population is demanding more meat, milk and eggs. U.S. DDGS and coarse grains continue to play an important role in livestock and poultry feed rations globally. We have to educate and connect our buyers and sellers to continue to grow vital markets for the United States.”

The conference will be held on Oct. 6-8, 2010, at the Hyatt Regency McCormick Place Hotel in Chicago, Ill. Registration information is available here.

Grains Council Elects New Officers for Golden Anniversary

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The U.S. Grains Council (USGC) is moving into its second half century with a brand new slate of officers and directors.

usgcAt the U.S. Grains Council’s 50th Annual Board of Delegates meeting in Boston this week, Terry Vinduska, a corn farmer representing the Kansas Corn Commission, was elected chairman for the 2010-2011 fiscal year.

Other officers elected include Wendell Shauman, representing Illinois Corn Marketing Board, as vice chairman; Don Fast, representing Montana Wheat & Barley Committee, as treasurer; and Julius Schaaf, representing Iowa Corn Promotion Board, as secretary.

Alan Tiemann, of the Nebraska Corn Board, was re-elected to the Council’s Board of Directors. Newly elected Board members include James Tobin of Monsanto; Bill Kubecka of United Sorghum Checkoff Program; and Jere White of Kansas Corn Commission.

Thomas C. Dorr, USGC president and CEO, said, “As the U.S. Grains Council begins its 51st year, we are fortunate to have strong, active leadership in place. Our new chairman, Mr. Vinduska, the Board of Directors, Board of Delegates, A-Team leaders and state liaisons provide excellent insight into the challenges and opportunities in the international market arena. The Council’s success over its first five decades is attributable to a long tradition of farmer and agribusiness leadership that’s determined to see the Council succeed.”

Many representatives from the National Corn Growers Association attended the meeting this week to congratulate the Council for 50 years of helping to increase export opportunities for U.S. grain producers. “We’re proud of the work the Grains Council has accomplished in its history, and we are proud to share several common founding members,” said NCGA President Darrin Ihnen. “We are working to build on our half-century history of collaboration so that we can continue to serve the country’s corn farmers to the best of our abilities.”

NCGA is a founding member of USGC and works cooperatively with their export promotion efforts.

Agricultural Relations Council Tours ADM Facility

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Attendees to the 2010 Agricultural Relations Council in Memphis, TN, toured a local ADM barge and elevator loading operation. Here’s a short segment of Q&A with the group during our tour. It was very well done and I think we learned a lot. For example, the tour guide said they were unloading up to 300 trucks per day during last season.

Need For More Exports

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USGC International Marketing ConferenceThe new U.S. Grains Council senior vice president of operations and industry relations is Keith Heffernan, pictured in the middle here. He was chief of staff for the Farm Credit Administration. Keith was also the first executive director for the Iowa Corn Growers Association; director of public affairs for the Iowa Farm Bureau Federation; assistant director for the Center of Agricultural and Rural Development at Iowa State University; and chief of staff for USDA’s Rural Development. In other words, he’s got a lot of qualifications to work in this new position.

I spoke with Keith here at the International Marketing Conference. He says participation is good and there’s a lot of excitement about exports. Looking forward he says there will be more attention and need for attention on exports.

USGC International Marketing Conference Photo Album

You can listen to my interview with Keith below.

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Learn About Trade With Mexico

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USGC International Marketing ConferenceHere at the U.S. Grains Council International Marketing Conference n this morning’s general session we had a panel discussion on trade with Mexico. In the discussion attendees were able to ask questions and answers. In fact, it was mostly a Q&A session. Allan Mustard, Minister Counselor, Office of Agricultural Affairs, US Embassy, Mexico City, introduced our panel.

Our panelists and their specialties included:

Enrique Dominguez (Director – pork producers confederation)
Discussion topic
-Excessive exports of pork into Mexico (why and what is causing in terms of jobs and capital loss)
-How long will that tendency last and what effects will result (everybody is asking this question)
-What can be done from a regional point of view (north America, NAFTA to correct this issue)

Ricardo Calderon (Executive Director APPAMEX – grain traders association)
Discussion topic
-Integration of the market MEX-USA, trends and role of different actors.
-Obstacles that can disrupt trade (which ones can be prevented)
-Future of grain trade MEX-USA
-How to keep free flow of feed grains

Carlos Lopez Coello (Scientist UNAM – National University of Mexico poultry specialist)
Discussion topic
There are 5 areas in developed countries where commercial poultry has received special attention, attributed in large part by consumer demand
1. Animal Welfare.
2. Environment Conservation.
3. Food Safety.
4. Traceability.
5. Animal and Human Health.

You can watch or listen to the Mexican trade panel. I recorded our live feed.

USGC International Marketing Conference Photo Album

You can also download and listen to the Mexican trade panel audio only.

You can also find photos online in the USGC photo set.

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Live From USGC International Marketing Conference

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We’re going to be broadcasting the final general session from the U.S. Grains Council Marketing Conference.

Post Update We were live. Now we’re recorded.

The Chairman for the U.S. Grains Council is Rick Fruth. Rich took the stage today to speak to attendees of the International Marketing Conference and Membership Meeting. I have recorded his comments for you in video and audio. I also spoke with him during a break to see what he considers the challenges and opportunities for the U.S. Grains Council.

You can watch or listen to Rick’s comments here:

You can also download (mp3) and listen to Ricks’s remarks here:

Listen to

You can also download (mp3) and listen to an interview I conducted with Rick here:

Listen to

You can also find photos online in the USGC photo set.

USGC Is International Marketing Partner for NCGA

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USGC International Marketing ConferenceOne of the founding members of the U.S. Grains Council is the National Corn Growers Association. Attending the USGC International Marketing Conference is NCGA CEO Rick Tolman, seen here addressing one of the meetings.

Rick, who worked for USGC for many years, says that NCGA considers the Grains Council their international trade partner. The two organizations have a very strong working relationship. He says one of the things he’s really happy to hear discussed here at this meeting is how well exports of DDGS have been due to the efforts of the Grains Council. That’s good news for corn growers for whom the production of ethanol is so important right now. He says that the Grains Council is looking at other value added products they can promote for export too.

USGC International Marketing Conference Photo Album

You can listen to my interview with Rick here:

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