Newsletter - December 2020

Manager’s Comments
By Dell Princ
Hello again! I hope this finds everyone healthy and done with harvest. It was a great harvest but not a record breaker. The lack of rain in August made sure of that. We handled 12.0 million bushels, which still came in just under our 2nd largest ever. You will find more details on the fall harvest in the Grain Department news. The dry fall made for great cutting, but presently has us praying for moisture as it is very dry. As most of you know, I am retiring at the end of this month. Craig Mans will be the new General Manager. I will stay on part-time for three years helping in the Grain Department making sure of a smooth transition. Cullen Riner will head up the Grain Department working along with Suzanne Roadhouse. Looking back, its been quite a ride these last 42 years working for Midway Co-op. It started with a phone call in March of 1979 when I was a Senior at Fort Hays State University. It was former General Manager Ed Palmer on the line. He said he heard I was graduating and wondered if I wanted to work for Midway as a Grain Merchandiser. It caught me a little off guard and I asked if could let him know the next day. I called my Dad and told him about the conversation and asked him what is a Grain Merchandiser? The rest is History. I accepted the job and I have been the Grain Merchandiser ever since. I also became Assistant General Manager in 1987 before becoming the General Manager in 1996. As some of you more mature members know, there were some rough times early on. Midway was struggling to say the least in the early 80’s. We had some bumps and bruises along the way, but we survived. We certainly have seen lots of changes and additions in this time. I will highlight a few of the changes. The most notable is the grain storage. In 1996 we had 3.5 million capacity. Today we are at 14.2 million. Its interesting to know that we also tore down 1.5 in old and obsolete storage in that time period. Most of the grain storage additions were McPherson Concrete storage tanks which will be here for a very long time. Many other improvements to all our locations have been made along the way. It took capital to finance these improvements and Midway’s financial success paved the way. Our net worth (Members Equity) was 5.3 million in 1996. Today it is more than 60 million. Yes, we made money. We paid out lots of Patronage and retired a lot of equity during this time. But maybe what I am most proud of is being a full-service Cooperative. Our Cooperative was formed in 1908 by farmers because they needed a place to pool their resources to buy and sell their goods. Today they still need us for the same reason. They might not need us to buy their eggs and cream or sell them coal for heat. However, they still need other services, whether it is fixing a flat tire and servicing a vehicle, fuel and propane, rolling and mixing feed, applying fertilizer and chemicals, agronomic help, a place to sell and store their grain and we also sell Crop Insurance. These are all necessary services that Midway Co-op provides. Some businesses have streamlined their services to what makes the most money. Midway continues to provide the services that are required by our members for all their farming and ranching needs. I want to mention one more thing about Cooperatives, not just Midway. What would the Ag landscape look like without Cooperatives? Cooperatives keep the playing field level They might not be the highest or cheapest, but it is better than having a few major players controlling the Ag Industry. Another thing I need to mention is our giving back to our Communities we are located in. Every year we give back tens of thousands of dollars. We are the major supporter of our kids involved in 4-H projects. We support all the fire departments in the area as well as the police and sheriff departments with donations that allows them to purchase necessary equipment. We are a major supporters of  Community projects including hospitals, foundations and many other projects. We are also proud to support the local schools whether its athletic events or fund raising for certain projects. We are there to help. Midway will continue with this support because we know how important it is for our communities. I know I said a lot about Midway and what it means to the Communities. I am very passionate about Cooperatives, and what they provide for the Ag Industry. I will finish this by thanking everyone for their support of me and Midway Co-op during my time here. I hope I have made a difference for Midway Co-op as well as the lives of our members. I also want to thank my Board Members. They come to meetings with their Farmer caps off and their Board member caps on. They give me the direction they want the Cooperative to proceed and allow me to manage it. That is not always easy for them. They not only want this Cooperative to be here tomorrow, but also for generations to come. I also want to thank all my Employees I have worked with the last 42 years. Their dedication and hard work have made Midway a very successful and viable Cooperative for its members. Looking forward I know Midway Coop will be in very good hands and its future looks bright. Thanks again for all your support and I would like to wish everyone a very Merry Christmas and prosperous New Year.
The Midway Board has approved a 5% equity payout. They elected to pay (retire) 5% of all patron’s equities. This amounts to $1,700,000 in cash that will be paid. Members will receive their checks this month. Remember this is a NON-taxable payment as the taxes were paid the year the equity was earned.
Robert (Shawn) Newell Passes
Robert Newell better known as Shawn died in a truck accident on October 12. Shawn was an active member of the Midway Co-op Board for the Burr Oak-Mankato locations. He brought much knowledge to the board meetings and will be greatly missed. He was a second-generation farmer who had a great passion for farming.
General Office Update
By Craig Mans
We are just about 9 months into our fiscal year, and I can report we are having a good year. With everything 2020 has thrown at the world your cooperative has maintained its financial strength. Our regional cooperatives are also performing quite well. At the November Board Meeting the board of Midway Coop voted to retire (pay) 5% of your equity. This amounts to over $1.7 million in total payout. Checks will be sent out in December. A reminder that the taxes are already paid on this payout. We are mailing out a Domestic Productions Activities Deduction (DPAD) notification, just as we did last year. This is a notification only of the tax deduction that Midway is passing onto our patrons for the grain business ending in our March 31, 2020 fiscal year. This is the notification of the deduction that will show up on your 1099 for 2020. There is nothing you need to do now. Please consult your tax advisor to maximize your use of this deduction. This is a great benefit of doing business with your cooperative. Our new software system was an adjustment for all our employees  as well as customers. We have made it almost 5 months and things are starting to feel a little more normal. We appreciate your patience with us as we learned and navigated the changes. It was very stressful for all of us, but I am very happy with how the Midway Coop employee team handled everything. Our General Manager, Dell Princ will be retiring from Midway Coop at the end of 2020. He has worked at Midway Coop since 1979 and has been the GM since 1996. Dell has had a remarkable career and has left a lasting legacy for Midway Coop and its patrons. We can not thank him enough for what he has done, and we are glad that he will stay on to help advise on a part time basis. We will be holding a retirement celebration for him in January with time and date to be determined. I am honored and excited to take on the challenge of managing your cooperative in this changing landscape. Midway Coop is blessed with a great employee group and loyal patrons. We will continue to provide the services needed and be an important piece of every community we are in. Our Mission Statement is, “To serve our communities with a financially sound, professionally managed cooperative offering quality products and services at competitive prices.”
By Ron Reneberg
I would like to take this opportunity to personally thank all our Patrons for their continued support of and business with Midway Coop. Also I want to thank all the Midway Coop employees that work so diligently to serve our patrons, communities and company. This special relationship that is “Our business, Our Community and Our way of Life” defines who we are. We are truly blessed and it is because of All of YOU! As for Crop Protection Products the big news is we now have a 5 year re-registration of Dicamba beans for post applications. There are some notable changes to the label with a June 30th cutoff spray date and some buffer change on downwind sensitive areas. The other issue right now is the restriction to only K-salt formulations of glyphosate as tank-mix partners. Fertilizer pricing trends tend to be tracking cropping decisions and we do expect high demand on Nitrogen & Phosphate products once decisions have been finalized and weather stimulates movement. With much uncertainty in the market we also expect some short term peaks and valleys in pricing with things stabilizing sometime after the first of the year. As always just in time orders will be difficult to guarantee so early planning will be needed. Now is the time of the year that we all do lots of planning for next season. So please call your Midway fieldmen and local Midway manager on questions you might have. We are and will continue to position crop nutrients and crop protection products in our warehouses both with early shipments and with prepays with our suppliers to make sure you have product when you need it. This year in particular will be interesting and challenging as we work through dry weather decisions and various cropping rotations. We need to remember that it is important to apply Nitrogen fertilizer EARLY this winter to support the fledgling wheat stand and thus also taking advantage of already having your Nitrogen placed when we do get our much needed moisture whether it is snow or rain. Here’s wishing you a very Happy and Prosperous HolidaySeason!

Harvest Price Increase in 2020
by Eric Mans
If I haven’t had a chance to introduce myself to you personally yet I’m Eric Mans and as Cullen has been transitioning to the Grain Marketing side, I have taken over as the Crop Insurance Agent here. I come from a finance background and I’m also working as the CFA agent here. If you have any questions or want to discuss any of your crop insurance or input financing needs stop by the Midway Coop General Office in Osborne, or give me a call at 785-346-5451, or on my cell at 785-346-4654. On the crop insurance side this year’s situation looks different from the previous few from the stand point that the harvest price will be higher than the base price for all of fall crops. The corn and milo harvest prices are set during the month of October, based off the December Futures. The soybean harvest price is set during the month of October, based off the November Futures. The crop insurance harvest prices for corn is $3.99 which is up from the base price at $3.88. For milo, the harvest price got set at $3.79 is 3% higher than the base price at $3.69. The soybean harvest price was set at $10.55 which is 15% higher than the base price of $9.17. Because of this, producers that have selected revenue protection for their crops may be getting a Revised Revenue Guarantee. Remember, with a Revenue Policy you get whichever is higher (the base price or the harvest price.) In this day and age, with the market volatility we have, Revenue policies offer the best protection for the producer. Here are a couple of things to keep in mind. Remember, the Harvest Price just like the Base Price is established by the Kansas City Board of Trade, not at the local elevator. The price you sell your crops for at the elevator is not what crop insurance considers to be your “Actual Farm Revenue”. Crop Insurance sets all prices and figures all claims at board price. This allows them to compare “apples to apples”. With inputs for the 2021 crop year already beginning be sure to contact me or your field rep and get your CFA note set up to secure low rate financing. CFA now offers online applications at as well as online account access. Be sure to contact your rep to learn more about 0% seed financing.
Grain Department
by Cullen Riner
I hope everyone had a Happy Thanksgiving. This is my first newsletter for the Grain Department. As some of you know I had been handling the Crop Insurance for Midway for the past 10 years. For those that do not know me I will give a short history of my background. I grew up in Pratt and then graduated from Sterling College in 2003. I taught Jr/Sr high school and coached high school and Jr high sports for the community of Osborne. For the past 9 months I have transitioned into the Grain Department here at Midway. I will be serving as the Grain Merchandiser starting in January. It has been a great experience working with Suzanne and Dell and I am really looking forward to this opportunity. We are so thankful we got the crops out of the field with virtually no interruptions at all. The dry weather was great for harvest, but we could sure use some moisture now. The dry August in most of our territory did affect the crops. However, we still managed to take in 12 million bushels. We piled 2.6 million on the ground or in bunkers. We have been busy picking up the grain since the first part of November. Currently the only uncovered pile is milo at Alton, where we are in the process of picking it up now. After the Alton milo is finished, we will only have 1.9 million left on the ground and it is all covered. The grain markets have really jumped in the last couple of months. Dry weather here and there along with China purchases have really pumped the markets. China’s buying of milo has really got that basis on fire. Currently milo is bid at $1.40 premium to corn which is unheard of. These higher prices have been just what we needed, and our producers are taking advantage. Most of our beans and milo have been bought already and corn is not too far behind. This year we added more than 400,000 bu. of grain storage at Mankato. We also put in a 15 thousand bushel per hour leg. It was a great addition to Mankato and was really needed. Currently our elevators are overflowing with grain. That means lots of grain moving out in the upcoming months. This should make for a great year in the Grain Department and should assure good patronage dividends for year end. Please call if you have grain on the farm and we would appreciate the opportunity to give you a bid on it. I want to thank everyone for their use of our elevators this past harvest. We look forward to handling your grain in the future harvests ahead. I hope everyone has a wonderful holiday season and a very Happy New Year.
by Jeff Hammer
Crop removal has become the key term referenced in terms of fertility in the modern age of agriculture. Most intense nutrient plans that stem from grid or zoned soil sampling are developed over a predetermined duration with a build or maintenance plan in place. Higher yields and better farming practices have likely resulted in more fertility mining the last 15 years than the previous 30-40 years combined. With optimism toward commodity prices in 2021, we need to address some basic soil fertility removal rates. Our grass crops are similar in how they utilize Nitrogen. The main question I always get is, “how did I raise 170-180 bu. corn on 120 lbs. of Nitrogen. The answer is pretty simple. Generally speaking, corn and sorghum only remove approximately 55% of the Nitrogen applied to the soil in the grain. The remainder is returned to the soil organically in the residue. This Nitrogen may become available to subsequent crops through a process called mineralization. It still takes 1.1-1.3 lbs. of Nitrogen/bushel of yield goal to keep Nitrogen from being limiting in corn and sorghum, even though we don’t remove near that much at harvest. Wheat grain removes a little higher percentage of the Nitrogen applied at nearly 70% of the 2.2 lbs./bu. recommended. If you apply 90-100 lbs. of actual N to wheat that yields 45 bu., then 1/3 of your Nitrogen is getting put back into the soil nitrogen system and readily available for the following crop. Nitrogen credit from soybeans is another hotly debated topic among agronomists. 60 bu. soybeans need approximately 300 lbs. of N that we hope they are able to fixate themselves. Subsequently, I would say in years of high yielding beans, we have less carryover the following year than we do in years when our soybeans are stressed with limited yield. I would expect for 2021 we get a higher than normal Nitrogen credit from soybeans due to the fact we had excellent growing conditions for the symbiotic Rhizobia relationship to flourish in July, but likely didn’t utilize the N produced from the dry August.  Phosphorus is a growing nutrient issue for our trade area. The major reason is because much of our phosphorus is removed with the grain. Corn removes approximately 0.35 lbs./bu., soybeans 0.8 lbs./bu., wheat 0.6 lbs./bu., and sorghum 0.4 lbs./bu. Soil P levels are a major indicator of good soil fertility. Generally speaking (for most of our finer textured soils locally), it takes 15-17 lbs. of P2O5 to change our soil test levels 1 part per million (ppm). 15-20 ppm is what most agronomists would call a good soil test level for our area. This means that if you have a soil that is 5 ppm, then it would take 150-200 actual pounds of P applied per acre without any crop removal to bring it up to those levels. The standard over the years has been to apply starter with wheat. If you only apply 30 lbs. actual P with wheat and take off a 60 bushel wheat crop, 150 bu. corn, and 50 bu. beans; you have removed over 125 lbs. of P2O5 from the soil in a 3 year span. This puts you at a deficit of over 90 lbs. and could pull your soil test down by as much as 6 ppm. Phosphorus is one of the biggest yield inhibiting nutrients in our area today. Potassium and Sulfur are two other nutrients worth investigating. It is widely known that we don’t get the amount of Sulfur from our rainfall that we used to get due to environmental restrictions on industry. Sulfur needs to be maintained with Nitrogen at a ratio of 12-15:1 in our grass crops for photosynthetic efficiency. Soybeans use over 3 times the amount of Sulfur as corn does and we don’t often associate Sulfur with soybeans. 60 bu. beans require nearly 300 lbs. of Nitrogen which they fix by way of nodules, however, a Sulfur deficiency in beans can make Nitrogen use inefficient in soybeans as well. Potassium gets glossed over in our heavy clay soils because we have such high levels. We continue to learn more on K and one thing to note is how immobile it is in the soil. No-till and auto-tracking the same path on the same rows can help pickup leftover Phosphate bands, but subsequently cause K deficiency due to roots growing down decayed root channels where K levels could be lower? Talk to your Midway Coop branch location or Agronomist for winter fertility programs to fulfill your production goals.
Quelex Herbicide
by Brian Mans
Wheat top-dress season will soon be upon us, with that comes decisions to be made regarding herbicides. The marketplace has lots of options, but a product that we have had good results with the last couple years is Quelex. Quelex herbicide provides broadleaf weed control with residual for your wheat acres, one of the biggest benefits of Quelex is very good crop rotation flexibility. Quelex combines two modes of action, including a new active, Arylex Active. Using different modes of action is important in helping slow down some of the herbicide resistance that we are fighting. Shorter rotation restrictions make Quelex a good option for growers that like to keep their options open. If double cropping after wheat harvest is an option, Quelex is a great fit with a 3-month rotation restriction to corn, sorghum, soybeans and sunflowers. However, if a cover crop is planned it is a little bit of a different story. The grass species (oats, rye, triticale, etc.) are all either no restriction or 3 month restriction but brassica crops (turnips, radishes, etc.) and most legumes (cowpeas, peas, etc.) are all 9 month restriction. Quelex can be tank mixed with 2,4-d and a Non-Ionic Surfactant.  It also may be applied in spray solutions with UAN or our Kugler products. Quelex can be applied from 2 leaf to flag leaf emergence.  Application rate is 0.75 oz/acre and is priced similar to the 0.4 oz rate of Finesse. For growers that want to graze wheat, livestock may graze 7 days following application.  Quelex herbicide will not have a fit on every acre, but if you are planning to double crop, cover crop or just want to keep your options open, it is a product to consider. If you are interested in trying Quelex, or want more information, please contact your local branch manager or agronomist. As with all herbicides, always read and follow label directions before use.
Protecting Your Investments
by Joe Princ
I hope everyone had a good Thanksgiving. Fall harvest is hopefully finished for everyone. For the most part it sounds like everyone had good crops to harvest this fall. At this point, it is time to start making plans for next years crops. Right now, we have our Winter dry fertilizer program going on. I want to discuss some products that can help you to protect your fertilizer investment.  I’m sure most of you have heard of Agrotain, but I want to talk about how it can put more money in your pocket.  Agrotain is a nitrogen stabilizer that helps to reduce nitrogen volatility by inhibiting the urease enzyme with the active ingredient NBPT. Volatility occurs when urea comes in contact with a small amount of moisture that causes a reaction with the urea and urease enzyme. This reaction causes ammonia gas to be created and released into the air. Studies have shown, that under the right conditions up to 40% of your applied nitrogen can be lost through volatility. Applying Agrotain to urea fertilizer can help to reduce the amount of nitrogen lost to the air. When volatility occurs, not only the fertilizer cost is lost but also yield potential for the crop is reduced. When turning in your fertilizer to be run this winter, consider using Agrotain to help maximize yields. Anvol is another nitrogen stabilizer that I want to discuss
because we will be transitioning to this product as we use up our Agrotain supply. Anvol works very similar to Agrotain as it contains NBPT, but it also has a second active ingredient called Duromide. These two active ingredient’s work well together because the NBPT provides immediate protection while the Duromide molecule provides a much longer protection than NBPT alone. A study by Virginia Tech. has shown that Duromide increases the window of inhibition by up to 27% over NBPT. Avail is a phosphorous enhancing product to be used on dry or liquid phosphorus. It works by creating a negatively charged shield that protects the phosphorus from getting tied up by calcium, iron, magnesium, and aluminum in the soil, thus making it readily available for plant uptake.  Phosphorous is important in getting a crop started by increasing root mass, stand uniformity, and overall plant health. The best placement of this product would be in furrow at planting time, especially where soil test levels are
low. Surface application treatments are not as feasible because phosphorus is immobile in the soil. When surface applying phosphorus, it is more beneficial to apply more phosphorous than treating it to help build soil levels. According to tests done by K-State, when Avail is used in furrow it can increase wheat yields by 8% and corn yields by 6%. If you have any questions on these products make sure to call your agronomist or branch manager. Thank you for all your business in 2020.
Petroleum Department
By Terry Zvolanek
Maintain Fuel Tanks for Cold Weather Performance
Before cold weather strikes, take steps to ensure problem-free engine performances and protect your valuable diesel equipment. With proper tank maintenance and fuel handling, you can avoid most common cold-weather problems.  In cold northern winters, ice formation in fuels containing water creates severe fuel line and filter plugging problems. It is important to regularly remove water from storage tanks, vehicle fuel tanks and filter bowls, and to follow these guidelines.
Tilt tanks to direct water and debris away from the outlet
Pressurize tanks to keep vapor and air inside
Drain and remove all contaminants every three months
Install proper filtration systems on bulk tanks
Replace fuel filters according to manufacturer recommendations;
if filters have a drain valve, periodically drain
water that may accumulate from condensation
Clean pump screens regularly
Request periodic fuel sampling for quality assurance
Have tanks cleaned annually
Another major reason for winter problems is that tanks are not properly blended down. When blending down a tank, it is imperative that you know how much fuel is left in the tank and calculate the treat rate accordingly. If you have 700 gallons of #2 diesel remaining in the tank, and need to create a 50-50 blend of #1 and #2, ordering 700 gallons of a 50-50 blend ( a common mistake ) would create flow problems – because it would result in a blend of 1,050 (71 percent) of #2 and 350 gallons (29 percent) of #1 Proper use of cold flow improvers can extend the operability of fuels without the use of #1 fuel. They serve two
functions: 1) changing the wax structure of diesel fuel so it can pass through filters more readily, and 2) keeping wax crystals dispersed longer when fuels are stored below the “cloud point” (temperature at which paraffin in fuels begins to form cloudy wax crystals and reduce flow).  When blending fuels, biofuels and additives, the components must all be at least 10 degrees above their cloud point– otherwise the additives will not blend in and therefore may
clog filters.  Let us help you with all your winter fuel needs.
The Feed Mill
By Dean Heise
Maximize Feeding Efficiency
To maximize your cattle’s genetic potential and minimize feed costs, we
have to utilize all available nutrients going into the cattle. Hay availability is good but there are a lot of low quality forages being mixed with wet distillers grains so we need all the help we can get to be able to breakdown the roughage. Alfalfa has a lot of variability again this year on quality and how many times it got rained on before baling, don’t leave out this option when looking for protein sources and it helps balance the Calcium:Phosphorus ratio. Wet distillers is somewhat of a challenge again this year with availability and price, contact us to run a least cost on your mix to see if it is cheaper to use other protein sources to feed the cows or calves in your lots. We offer many types of ionophores and yeast to meet your various needs: from reducing bloat, increasing feed efficiency, helping forage digestion and utilization, to preventing/treating scours. They can be mixed into complete feeds, supplements, or made into a top dress for specific hand feeding needs. With harvest wrapped up, many of you will be utilizing stalks. There is a lot of forage there to be used but the digestibility of these stalks is not the best and needs some protein to help utilize it. Our Golden Feeds protein tubs are a perfect fit to provide a complete protein and mineral program for beef cattle. We have some of the tubs available in an edible container as well as the plastic containers. Consumptions can be adjusted from <½ lb. Per head per day with 35-40 head per tub to 1+ lbs. per head per day with 12-15 head per tub. Salt needs to be fed free choice as the tubs contain no salt. Some fields have excessive grain on the ground so use caution when turning onto these fields. We have 12-8 Mag/Yeast mineral designed for use on these fields that will help with the acidic overload that corn/milo will create in the rumen. If the grain is really bad, you may want to add sodium bicarbonate to the water tank also to help buffer the rumen. Give us a call and we will help you through the winter grazing season so you are ready for calving.

Mineral’s Too Expensive!?!
“I cannot keep mineral in the feeder” is a common saying in the winter. We may have plentiful grass in the pastures, but the quality is low. The protein and mineral content is lower than normal and livestock is consuming more than usual amounts of mineral. Make sure they are not craving just salt, if it is easier to take a mouth full of mineral than to sit and lick on a salt block…that may be part of the overconsumption issue. Cows should eat about 1 lb. of mineral each week, if it is over 1.5 lbs., add loose salt to the mineral to slow them down. Don’t skimp on mineral during the rebreeding of fall cows or the gestational programming of spring calves. If you can get one more cow bred or one more live healthy calf on the ground with today’s prices on weaned calves that would pay for about one ton of premium mineral with chelated ingredients. (Almost enough to supply 40 cows for a year.) I have had many customers tell me that they are getting 80% of their calves within the first 20 days of calving and several have had 100% calve within 45 days. If you would like to tighten your calving window and get more calves on the ground, ask us about Breeder Xtra mineral. Start feeding it 2 weeks before you turn the bulls in and for the next 45 days after, you will be amazed the results in 9 months! I would suggest using it on the bulls 45-60 days before you get ready to use them so they are at peak performance when you turn them in the with the cows. Phosphorus is a key nutrient when it comes to getting cattle bred, make sure that trying to save a couple bucks per bag of mineral doesn’t cost you a calf at weaning time. Don’t forget that our mineral promotion will be coming again in January so you can get 1 free bag when you buy twelve bags of any floor stocked range mineral.
Thank you for your patronage and please have a Safe and Merry Christmas Season.
General Office .............................346-5451
Burr Oak................................................647-6661
Service Stations/Propane
Feed Mill..............................................346-5441
Seed Cleaning Plant
Larry Stanley (Lebanon)..................Chairperson
Jerry Lambert (Bellaire)...........Vice Chairperson
Lynn Cooper (Osborne-Bloomington)....Secretary
Richard Conrad (Portis)............................Director
Brice Guttery (Alton)................................Director
Martin Ulrich (Luray-Waldo)....................Director
Dennis Rotman (Downs-Corinth).............Director
Dell Princ....................................General Manager