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Current Issue: December 2019

Manager’s comments

by Dell Princ

Hello again. Can you believe this weather and the abundant moisture? The fall crops for the most part are in excellent shape and could be something for the record books. This is on top of what was a terrific wheat harvest, with many of you seeing the best yields in your lifetime. And unfortunately, the great weather and great yields and negative USDA REPORTS, make for very disappointing grain markets. It appears with these low prices it will take excellent yields to get a return. Hopefully future REPORTS will get the market on the more positive side. Supply and demand are very much into play. Hopefully the markets will hang in there for what I said earlier, could be a record harvest.

We have been busy here trying to figure out a way to handle the potentially huge harvest. Fortunately, we have added additional storage again this year. We will most likely invest in another bunker or two and there will also be lots of milo piled on the ground. We know there is risk involved but you, our producers, will need a place to take it and we will do all we can to accommodate you.

Currently we are in the finishing stages of a bushel McPherson concrete tank at Lebanon. We are thankful that we have continued to reinvest into storage for your cooperative. This has been very vital to serving our members needs and also to our continued financial success.

Currently we have the financials in on our first four months of our fiscal year. I am happy to report that we are again having a good year. The volume of grain handled and the continued growth in our supply sales are making this possible. We will continue to manage your cooperative as efficiently as possible, so we can continue to provide the vital services you need and also return money back to you in patronage.

As I mentioned earlier these low grain prices are making it very difficult for our member-producers. We understand this very much and will do everything possible to help you out with your farming and marketing needs. We have great employee's that go the extra mile to keep you coming back and I'm very appreciative of them. We have a great Co-op today and will continue to manage this Cooperative to be great tomorrow. Thanks for your use of our facilities and services. Have a Safe and abundant harvest.

 

Agronomy

by Ron Reneberg

Here we are again managing through changing times. Just when you think things are set in one direction they change. Over supply one season seems to lead to an under supply the next season. Too little rain in one area and too much rain in the next. Throw in a couple new Tariffs and watch the extreme swings in market prices on all products… ..it’s enough to make one’s head spin! Welcome to the new norm in today’s Agriculture. That’s why Midway’s Agronomy

Department is devoted to working so closely with our Patron Owners… .to help manage through the everchanging environment we now live in. On that note we have again this summer and fall secured more than ample supplies of your fall crop production fertilizer and protection product needs. We know how very important it is to have your supply needs available when you need them.

Fertilizer prices and supplies have been greatly affected this late summer by the adverse wet weather this past season. Manufacturers have had to change supply distribution points across the entire Midwest, and it has taken a toll on traditional supply chains. It is important to communicate your need to Midways Agronomy staff so we can ensure your timely deliveries. We have the dedicated and highly trained employees on staff to cover your technical questions and deliver and apply your crop needs with state-ofthe-art application equipment.

Lead with Seed is something you will hear a lot about in the future as basic Manufacturers consolidate and tie the latest Seed technology to their latest Crop Protection offerings. Midway Agronomy is spending a great amount of time now days concentrating on our local producers’ future needs and making sure we are ahead of the curve with our Agronomy offerings.

In closing I want to thank each and every one of our customers for their continued support of Midway Coop, Inc. and its Employees. It is because of you that we are able to supply your Agronomic supply needs when you need them, with up to date equipment and expertise. Have a SAFE fall drilling and harvest season.


From the Grain Department

by Suzanne Roadhouse

I always laughed at the saying “The older you get; the faster time goes by.” But I have no doubt they all knew what they were talking about. Summer is quickly ending, and fall is just around the corner. We were lucky enough to get to spend a week with our grandchildren before school started. We didn’t get to take them on any grand vacation, but we did get to spend time doing a lot of the things they like doing and we made great memories doing it. As hard as it is to do sometimes, we all need to take a little time out from our busy lives and make time for family and friends.

Looking back on the 2019 wheat harvest, two things come to mind. The first is that it was a good harvest with yields like we haven’t seen in a while. Midway took in more than 4.2 million bushels of wheat, which is -I .5 million more than we took in last year. We did have to pile some wheat on the ground, but we were able to get it picked up right away. As you would guess with the good yields, the price has continued to drop since harvest began. Price on the first day of harvest was $4.20, price today is $3.37. Currently we have bought 40% of the crop. The second thing that comes to mind is that it was a long harvest. Typically, harvest is done in two to three weeks, this year we staffed on June 25th and we took the last loads on July 31 st, making it one of the longest wheat harvests’ that we have had. We have gotten some timely rains and it looks as if we are setting up for a very good fall harvest as well. We have been shipping grain and moving grain around to be able to handle harvest in the best way possible. Even with moving all this grain out and the addition of more grain storage this past year, Midway will still have to put a lot of grain on the ground or in bunkers.

As you are getting your fields ready for wheat planting, please take advantage of our seed cleaning and treating plants in Portis and Lebanon. They will clean your seed and can also apply fungicide, insecticide and a growth promoter to help you achieve the best results for your farming operation. This in turn will add to your bottom line. Give them a call and they will answer any questions that you may have and be happy to schedule an appointment for you. Be sure to ask them about their bundling program. Here are the telephone numbers for each location: Portis 785-346-2021 and Lebanon 785-389-5311 .

 

Lower Crop Insurance Revenue Guarantees for the 2020 Wheat Crop

by Cullen Riner

The 2020 crop insurance base price for wheat is currently being set. There are a couple of things producers need to be aware of as we enter the 2020 wheat crop year from a crop insurance standpoint. Last year’s base price was $5.74. Looking at the wheat market recently and unless we see a significant rally, producer’s crop insurance revenue guarantees will be less at the same coverage levels they selected a year ago. With these lower prices it will be increasingly important to make sure crop insurance revenue guarantees are as close to covering cost of production as possible. The same coverage levels selected a year ago are probably not going to protect the same dollar amount in 2020. A producer may be able to select a higher coverage level in 2020 and pay a premium that is comparable to their 2019 premium. I would encourage everyone to look at their coverage levels and crop insurance revenue guarantees for this year’s wheat crop.

The 2018/2019 ARC County payments in Nonh Central Kansas look like grain sorghum and wheat may trigger payments. Jewell, Lincoln, Mitchell, Republic, Russell, and Smith counties may receive a grain sorghum payment. Jewell , Mitchell , Osborne, Rooks and Russell counties may receive a wheat payment. It does not look like corn and soybeans will be triggering a payment this year.

For those enrolled in the PLC Program KSU’s estimated wheat price for MYA 2018/19 price is $5.16. This would generate a 2018/19 wheat Price Loss Coverage (PLC) payment of about 34 cents. The KSU estimated prices for MYA 2018/19 are $3.60 for corn, $3.24 for grain sorghum, and $8.51 for soybeans. Based on KSU’s estimated 2018/19 MYA prices, PLC will pay 10 cents on corn, 71 cents on grain sorghum, and zero on soybeans. The estimated soybean price was Il cents higher than the $8.40 reference price and that would eliminate PLC payments on soybeans.

The deadline for making any changes to your wheat policy is September 30th. Here some other crop insurance dates to be aware of: the final plant date for wheat in Osborne, Mitchell, Jewell, Lincoln, and Russell Counties is October 31st. Final plant dates for wheat in Smith and Rooks Counties are October 20th. The acreage reporting deadline for wheat is December 15th. If you have any questions or want to discuss any other of your crop insurance needs stop by the General Office in Osborne, or give me a call at 785-346-5451, or on my cell at 785-346-4768.

 

Pre-emerge Wheat Options

by Brian Mans

It is hard to believe another summer is wrapping up, seems like every year goes faster than the previous one. With summer winding down, it will soon be time to make the final burndown for acres going to wheat. Many growers are already applying a residual product when making that final burndown application, but I thought I would discuss a couple options for residual that we have gotten along good with the last several years. Olympus and Finesse are both good options that can meet the needs of most acres.

Finesse is an option that has been around for a while but continues to do an excellent job. It also provides some burndown activity itself on some of the smaller broadleaves that are emerged. Pre-emerge rate is .5 oz; it will give you a little bit of cheat suppression and do a good job controlling broadleaves. Finesse pre-emerge is also going to give you very good control on buckwheat. However, if you know cheat is going to be a problem, Finesse is not going to be the answer. Another benefit is rotation restrictions of Finesse. Sorghum has a 4-month restriction following Finesse, so if we do get a hail storm or other disaster you have another option besides STS soybeans.

Olympus at .6 oz is also a good option. It is going to give you good control of cheat and downy brome in the fall. Olympus does not have the burndown activity on broadleaves that Finesse has, but it does have good pre-emerge broadleaf activity. Olympus also has some flexibility, if you do have another flush of cheat or downy brome emerge in the spring you can come back in with another .6 oz of Olympus to clean that up. Fall applied Olympus also has a rotation restriction benefit. Corn is labeled 18 months following Olympus. So, if you get Olympus on in the fall you could go to corn the spring following wheat harvest, whereas if you wait to spring then you cannot plant corn the following spring.

I know some growers do not like to spray 2,4-D or Dicamba post-emerge on wheat and these options eliminate that. Having your herbicide on allows you to consider more options for applying your nitrogen as well. If your herbicide is already applied, it allows a larger window for either a liquid fertilizer top dress application or allows you to meet all your nitrogen needs with dry fertilizer in the winter months if you would like. However, with any pre-emerge product, it is important to apply these close to planting, applying these herbicides several weeks ahead of wheat drilling makes them less likely to be successful. If you have any questions or concerns, please contact your local branch manager or agronomist.

 

Preventing Wheat Diseases

by Joe Princ

It’s hard to believe that summer is ending. Over the last several weeks, Midway’s territory has received ample moisture to finish off the fall crops. That being said, a lot of wheat stubble fields are going to need some attention if wheat is going to be planted back in there or nearby. Most of the volunteer wheat has just come up recently. As we know, volunteer harbors insects that can cause yield destroying diseases like wheat streak mosaic and barley yellow dwarf.
Wheat streak mosaic is a virus carried by the wheat curl mite. These mites can also have other grasses as a host, as I saw some move out of pasture ground into wheat fields but in most cases, they can be linked to volunteer. Early fall infestations in a wheat crop can cause yellowing mosaic striped leaves and stunting. This can add up to 50% reduction in yield.

Barley yellow dwarf is another disease that is often times confused with wheat streak as it has similar symptoms. BYD is spread by several different aphids but the most common being oat bird-cherry aphid and corn leaf aphid. The aphids spread the disease by eating on infected plants and carrying it to other wheat. Barley yellow dwarf is characterized by yellow to purple colored stunted plants grouped in small patches. The best way to manage for BYD is planting varieties with known tolerances and delaying planting until after aphid populations decline.

The first step in preventing these diseases is controlling volunteer wheat. If using glyphosate to control volunteer wheat is your method, you need to consider the fact that the plants need to be completely dead for 2 weeks prior to planting those fields or fields in close proximity. This means that fields need to be sprayed at least 3 weeks in advance to give time for the chemical to work and the insects to move on. With the abundant moisture we have received over the last several weeks we have a good crop of volunteer wheat up now. Over the next several weeks we will want to get these fields cleaned up to help minimize the spread of these diseases.

The next step in prevention is planting later, I know that fall is a busy time and there are lots of crops to be harvested, but waiting till the hessian fly free date for your area is a good rule of thumb to go by. I receive questions about using an insecticide seed treatment to control these virus spreading insects. Seed applied insecticides help prevent Barley Yellow Dwarf from becoming widespread but keep in mind the aphids must feed on the wheat to ingest the insecticide so minimal damage can occur. As far as controlling wheat curl mites, insecticides are ineffective. If you have any questions give your agronomist a call.

 

Petroleum Department

by Terry Zvolanek

A small motor oil revolution started in 2018 of which few people are aware of. The introduction of the brand new OW-16 viscosity motor oil may seem exotic to North American drivers, but as fuel efficiency requirements increase it may become a common recommendation of manufacturers worldwide. Japanese engineers have long experimented with ultra-thin motor oils, a OW-16 has been in regular use in Japan since the 90’s.

Lower viscosity motor oil can increase fuel economy, and the pressure to create engines that sip less fuel has hastened the introduction of these viscosities to North America. The stated fuel mileage estimates for several 2018 vehicles were calculated with OW-16 motor oil installed. Beyond fuel economy, low viscosity oil can also provide excellent cold starts in the most frigid temperatures.

If you are concerned that lighter oils offer less protection, you must realize that engines have changed. Most new engines feature an oil pump that can deal with these lighter-weight oils.
Variable displacement oil pumps can deliver the correct volume and pressure using lighter-weights oils and create less drag on the engine.
These pumps are far more sophisticated and are often electronically controlled. Even if that does not change your mind, consider the variable valve timing actuators. If the oil is not the right viscosity, it can cause sluggish performance of the actuators that can cause codes and drivability problems.

The primary concern with low viscosity oil is wear protection, OW-16 develops a strong fluid film that keeps metal components separated and protected. The oil companies didn’t produce this oil by simply blending a new viscosity. OW-16 Synthetic Motor oil is formulated with unique anti-wear additives that protect critical engine parts like pistons and cams. This added protection is particularly important in the extreme environments produced by todays smaller displacement engines that run on lower viscosity oil.

Some of the other benefits of the OW-16 motor oil are:
  • Provides advanced wear protection
  • Improves fuel economy & maintains low emissions
  • Protects pistons from low-speed pre-ignition
  • Keeps Engines clean
  • Protects in all temperatures
  • Meets the requirements of new vehicles like the 2018 Toyota & Honda
 

General Office Update

by Craig Mans

The local county fair season is over, and kids are back in school! That seems hard to believe. Midway Coop was happy to sponsor many kids at the fair and premium sale. This year we spent over $30,000 supporting premium sales at local fairs.

Since our last newsletter, our patronage checks were sent out. We are proud to be able to return patronage to our member patrons. This year our patronage was highlighted by paying 38 cents per bushel on grain sales from our 2019 fiscal year (see our website for all patronage rates). This followed up a record year last year. Most other patronage rates are nearly the same, but petroleum jumped from 1 .7% to 4.1% which was about I I cents per gallon. Fertilizer and Chemical rates were 10.053% of purchases. 50% of the patronage was paid out in cash last month and the other 50% was added to your Midway Coop Equity. The total patronage allocation was $6.6 million and 50% or $3.3 million was paid out in cash.

Cooperative Finance Association Inc. (CFA) is now accepting applications for the 2020 crop year. This year they have a new Simpli-Fi application. This will simplify the process by combining the application and loan documents in one step (in some cases, additional paperwork may be required). I recently mailed out the new application and highlighted the new areas of information needed. On Page I , please provide your Assets, Liabilities, Gross Farm Income (off your Schedule F), Non-Farm Income, Primary Operating Lender, Total Acres Owned and Total Acres Rented. Sign page 6 where indicated. Please update the form with your expected acres for 2020 (please do not put anything in the price box) and any other changes, If anyone has a question or concern regarding CFA or any other financing, please don’t hesitate to contact me, your local branch manager, Brian, Doug, Jeff, Joe, Tanner, or Wyatt for more details.

Also, a reminder that CFA will email your statement to you unless we request that it be mailed. Contact me to get this changed.

We are continuously working on changes in the office to make your experience with us better. I hope that we are making it easy for you to do business with us. Please follow us on Facebook or our webpage for updates on things going on and giveaways! We are currently having a contest to pick the day and time of our first fall harvest loads of Beans, Corn, and Milo. $50 Gas Card for each winner! Thank you for your continued business.

 

The Feed Mill

by Dean Heise

Protein and energy requirements of the cows and calves may not be met as the pasFEEDS ture grasses get more mature. With varying forage qualities and quantities in pastures, supplementation on grass will allow you to leave livestock in pastures longer to use more of the available forage. Creep feeding will help alleviate some of the pressure from the cows. We keep bulk creep pellets in stock, or we can customize a creep feed to match your needs. We keep our standard Custom Creep R48 as well as Stage 2 Creep with more limiter to control consumption on the larger calves in the bulk. Creep feeding will also help in the transition of weaning and getting them started on feed. Another way of supplementing the cows can be supplied with cubes, low-consumption protein lick tubs, or any number of commodity by-products. We stock consistent consumption CTI cooked protein tubs as well as the VITALIX line at Bellaire and can special order VITA-FERM’s line of products also. Give us a call and let us help you find the right supplementation progranl to fit your operation.

Weaning a little early will help let the cow herd get in better shape before winter sets in and allow time to get calves started on feed before harvest hits. We have seen less stress and sickness in earlier weaned calves the last several years than calves weaned later in the fall when temperatures fluctuate more. If you want to feed them, get them off to a good start with our Inbounding complete receiving feed or Jumpstart Stress Mineral. These are both non-medicated, so you don’t need to get a VFD from the Vet to use them. Using either of these for the first week before switching to your own grain mix, getting the essential vitamins and chelated minerals into the calves to help boost their inuuune system pays huge dividends. Receiver tubs are getting more attention as they will stimulate saliva production to help buffer the rumen and provide added sugars for energy and better microbe function in the rumen.

Please remember that if you want to use antibiotics, a VFD is required from the veterinarian. You cannot just walk in and buy a bag of Aureo/CTC crumbles when you feel like it. The VFD does NOT include Rumensin, Bovatec or MGA, we will continue to use those as we do currently.

Don’t forget that October is the next mineral promo month. During that month, for every 12 bags of range mineral you buy - YOU GET I BAG FREE.


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