Protect and Maintain your Equipment
Planting season is one of the busiest times of the year, and ensuring your equipment is well-maintained and protected can help prevent costly breakdowns. Preparing now by using high-quality lubricants and grease, performing regular oil analyses, and enrolling in the Cenex Total Protection Plan® will keep your equipment running smoothly when you need it most.
Spring 2025 Energy Market Update
Over the past few weeks, crude oil prices have seen a welcome decline. However, recent geopolitical events—including airstrikes on the Houthis in Yemen, renewed conflict in Gaza, and a weaker dollar driving crude demand—have led to price stabilization for now.
Spring 2025 Fertilizer Market Update
The fertilizer industry buzz continues to revolve around tariffs, what they will look like, when they will be put in place, if at all, and how it impacts pricing of those commodities going forward. For now, tariffs are messy as there are more questions than answers. Outside of the tariff news, fertilizer market news continues to reflect the narrative and trend from the first of the year.
From the Manager's Desk
With spring just around the corner, your cooperative is gearing up for another one of our seasonal rushes… spring planting season. Not only will we see our total employee count peak for the year, but nearly every asset in the company will be in use. While many businesses have equipment and buildings that are in use all year long, our grain and agronomy divisions have millions of dollars invested in some assets that only get used for a few months out of the year. It is critical that these assets are fully operational and ready to go when the season starts. Our agronomy operations team has spent the winter months going through all the equipment to make sure it’s in good working order, unwrapping and greasing up the new sprayers, trucks and other equipment we’ve purchased this year, updating technology and precision tools on existing equipment, and conducting hours of training on its use and safety.
January Energy News
I’m calling winter over. Stick a fork in it. It’s done. Now that it’s behind us, that wasn’t so bad, was it? The lack of snow most of the winter made it easier to deliver propane to our customers and cut down on slip, trip and fall injuries. Other than the last few weeks in February, we got off pretty easy with little snow and cold temperatures. Here’s my unsolicited investment advice for the month. Don’t own snowmobiles. I like to think that my life serves as a warning to others.
January Energy News
Well, we’re finally on the downhill side of winter. In my opinion, we’ve got it pretty good in southern Wisconsin as we normally only see three months of weather that can be brutally cold and that comes in streaks. If you think back to late November when we started seeing temperatures drop into the 30s, it seemed horrible. I spend a fair amount of my time outside, so after the cold snap in January, as soon as it got above freezing, I was ready to break out the t shirts and shorts. It’s funny what you can get used to.
From the Manager's Desk
On January 15th, Premier Cooperative held its 132nd annual meeting at WI Riverside Resort in Spring Green, WI. As part of the financial report, Premier CFO Andy Jones reported your cooperative had a very strong year with gross sales of $275 million and local net earnings of $16.7 million for fiscal year 2024, compared to the prior year sales at $308 million and $15.1 million in earnings. While total sales were down from prior years due to declining commodity prices, strong unit growth led by our feed and agronomy divisions, combined with solid performance from our energy and retail divisions helped to improve upon last year’s record local net savings.
January Energy News
Happy New Year, everybody! Where does the time go? I can’t believe a year has gone by since I broke my last New Year’s resolution. This year I resolve to make no more resolutions.
From the Manager's Desk
Happy New Year to each of you from the staff at Premier Cooperative. I hope everyone was able to take a break over the holidays and spend time with family and friends.
On January 15th we will be holding the 132nd annual meeting of the members of Premier Cooperative. The agenda includes reports from CFO Andy Jones, board chairman Steve Burns, and myself, along with the announcement of director election results and scholarship recipients.
December Energy News
I’m writing this newsletter the week of Thanksgiving. I hope you all had a happy Thanksgiving Day with family and friends. I spent last weekend sitting in my tree stand that I affectionately call the Iron Maiden. It isn’t named after the rock group but the medieval torture device. I didn’t get a deer, but I sure got a sore back.
Unmatched Quality, Unbeatable Service
When it comes to keeping your equipment running smoothly and efficiently, Cenex Premium Diesel is the fuel you can rely on, no matter the demands. Premier Cooperative is proud to offer Cenex Ruby Fieldmaster, which provides a 5% boost in fuel efficiency and power compared to standard #2 diesel.
Our commitment to quality is unmatched. We offer friendly, trustworthy representatives, tailored options, and no hidden fees, all backed by industry-leading technology and local support. Premier Cooperative’s storage capacity is one of the largest in the area, ensuring a steady supply of fuel when you need it most.
For more information about our industry-leading Cenex premium fuels and applicable programs, please give me a call at 608-504-6581, or visit our website at premiercooperative.com/diesel.
From the Manager's Desk
We have successfully completed our annual financial audit and I am happy to announce that your cooperative experienced another solid year in 2024. Notable achievements include consistent year-over-year growth from our feed and agronomy divisions, which led our company in total sales. Our energy team also maintained their steady performance despite the unusually warm winter last season. Each division ended the year with strong sales and positive earnings. Premier will report fiscal 2024 local net savings of $16 million and total revenues exceeding $275 million.
November Energy News
I hope you got more treats than tricks on Halloween. It was uneventful at my house. I guess I must live too far out in the sticks to be worth messing with.
From the Manager's Desk
By the time this update reaches you, we will have wrapped up the first month of our new fiscal year and will be under way with our external financial audit for the year completed on September 30. While we expect total revenues will be off compared to the historic levels of the last two years due to lower commodity prices, we anticipate our primary measure of growth and local earnings to remain strong for fiscal year 2024. I look forward to sharing the results and more with you next month.
Premier Cooperative to Acquire Dickeyville Feed LLC
Premier Cooperative is pleased to announce the acquisition of Dickeyville Feed LLC, a strategic move that will enhance our service offerings and strengthen our presence in the region.
Harvest Information
Harvest is upon us. Premier Cooperative’s Grain Division is prepared to receive what we hope to be a bountiful crop this year. We have spent a lot of time doing preventative maintenance to ensure quick unload times at each location. This will help ensure limited breakdowns during the busy harvest season.
October Energy News
October 1st marked a milestone in my life. Thirty years ago on that date, I started working for the cooperative. I was 32 years old with a work history that included working as a laborer in a cheese factory, a construction worker building Harvestore silos, an infantryman in the U.S. Army and a salesperson at a competing cooperative. I guess you could say I was well rounded.
From the Manager's Desk
Fall is here and harvest is under way for most of our area. Our grain facilities located in Mazomanie, Mineral Point, Richland Center, and Westby are anxiously awaiting this year’s crop. A few weeks ago, the Premier grain team spent the day reviewing safety and operational procedures to better prepare to serve our members’ needs during the upcoming season. Whether you need help hauling your crop to the elevator or are still looking to finalize your grain marketing plan, give us a call. Our knowledgeable staff is looking forward to working with you to make your harvest as safe and smooth as possible. Our team will do their best to meet your needs. Early communication of trucking and expected harvest dates are always appreciated. Thanks for your support and please be safe this harvest season.
From the Manager's Desk
As summer begins to wind down and many of the fairs throughout the area come to a close, I’d like to congratulate all the kids who participated this year. If you haven’t done so already, there’s still time to check out our website for details on how our members’ kids can earn cash for showing livestock at the fair. In addition to giving away thousands of dollars to participants each year, Premier is also proud to sponsor many of the trophies given out at some of the local fairs. In some cases, we also provide products and financial support to local 4H groups traveling to the state fair. Good luck to all of you as you wrap up another show season.
From the Manager's Desk
Last August, we were talking about how southern WI and much of eastern IA were in a severe drought. Parts of our territory were even classified as having extreme drought conditions and going a full month without any measurable rainfall. Today we have nearly the exact opposite conditions. Instead of extreme drought, we are seeing nearly record rainfall for much of the Midwest, and some areas dealing with ongoing flooding issues. Just as the drought brought out concerns for how last year’s crops would yield, too much rain this year can bring a different set of challenges to overcome and stressful times for our customers and staff in our ag divisions.
August Energy News
This week is exciting for me. We’re remodeling the office in Mt. Horeb so I’m moving my stuff out for a few weeks. I’m not saying a remodel is long overdue, but the current office carpeting is eligible for the senior citizen discount at participating restaurants.
Generating Revenue on Your Dairy
Every year, I get fooled by some article on milk pricing and the forecasters predicting the price that we will see in the future. They take on the nearly impossible quest of prediction with the same confidence of the newscaster reading the weather on my tv, and we all know how that went this spring. In February the mailbox price was in the $15 cwt range and now, fast forward to June, we are around $19 cwt. On a 600-cow dairy, that’s about $75,000 a month difference equating to just under a cool million in a year. How does your farm handle this volatility? I don’t think there’s a magic cookie cutter answer in how we manage this, and it appears volatility is here to stay in commodity prices.
July Energy News
By the time you receive this newsletter, Independence Day will have gone by. I hope you enjoyed the day off. I should have done this in last month’s newsletter but let me give you some fireworks advice in case you have left over munitions. The most important thing to remember is after you light the fuse, Mr. Fireworks is no longer your friend. Then, while fleeing, don’t zig when you should have zagged. Now you know.
From the Manager's Desk
I hope everyone had the chance to enjoy the Independence Day holiday with family and friends. Thanks to all of you who called in your orders early so our staff could adjust to the mid-week holiday and help minimize the added pressure that the short work week brings. I’d also like to thank all of you who returned your propane contracts by the end of June. With a short window of when contracts are mailed to when they are due back, we really appreciate your patience and support. If reading this reminds you that your contract is still sitting on the kitchen table, just pick up the phone and call the energy office nearest to you. Our friendly staff will be glad to take care of you. On behalf of our energy team and everyone at your cooperative, thank you for choosing us to serve your propane needs again this year.
From the Manager's Desk
We began distributing this year’s patronage and equity redemption checks with our May open house events in Mt Horeb, LaFarge, and Westby. With a little help from Mother Nature, we were lucky to have beautiful weather and an even better turnout for each open house. If you were not able to stop in to pick up your check this year, you should see it arrive in your mailbox by mid-June. Checks began getting mailed the last week of May and could take a couple of weeks to complete.
June Energy News
This month is an exciting time for the energy division. We’ll be mailing the propane contracts and/or safety information to over 15,000 propane customers. Be sure to share the safety information with your entire family.
From the Manager's Desk
Despite the possibility of a few more nights of sub-freezing temperatures in the last week of April, our agronomy locations are not slowing down as they enter their busiest season. Our agronomy division and producer members are working hard to plant this year’s crop, with long days and short nights being the norm. It’s important to be extra cautious during the next couple of months. Farm machinery will be frequently entering and exiting fields and wide loads will be encountered on the road. Whether you’re driving to work or moving to the next field in your tractor, always be aware of your surroundings and never assume that others can see you. Take it slow and be safe.
Premium Diesel. Premium Results. Premium Partner.
At Premier Cooperative, we provide high-quality fuel solutions for our clients. With this commitment, we're excited to offer you the chance to set up an account to access Cenex premium diesel for your trucks. Here are a few reasons why partnering with Premier Cooperative for your fuel needs makes sense:
April Energy News
I was caught in a snowstorm coming back from a hedging meeting in Inver Grove Heights, MN on March 26th. It was nice to see that someone is getting a little winter this year. By the time I got to Wisconsin Dells, all of the snow and ice clinging to my truck was gone and I was back in spring weather again. While our propane sales decreased this year, the bright side is that our wear and tear on our vehicles, equipment and employees declined as well. There’s always next year.
Farm Field Tracking
Save yourself a headache this fall by setting up farm field tracking. Farm field tracking can be done pre-harvest by contacting your local Premier Cooperative location to set up your intended fields to harvest this fall. We can then streamline the tracking process by incorporating it into your personalized Proof of Yield, making it more convenient for you. Monitoring your fields also offers valuable insights into yield discrepancies across different locations or soil types. Think about the time you’ll save after harvest when dealing with your local FSA office or insurance agent. Contact us today to get started.
Premier Cooperative also offers daily market texts. Contact me at 608-987-3100 to take advantage of this program.
From the Manager's Desk
The beginning of April marks the halfway point for your cooperative’s fiscal year. Except for our feed division, which operates in a high paced environment year-round, many of our divisions are ready for their busy season to kick into high gear. The changing season is the unofficial start to the busiest time of year for your cooperative. Our full-service agronomy locations are now ready to put their winter’s worth of planning and preparation into action. While most locations have been able to get an early jump on the season with fertilizer applications, soon every location will be buzzing with all hands on deck. In the next few weeks your cooperative will ramp up to the peak employee numbers for the year.
From the Manager's Desk
The beginning of April marks the halfway point for your cooperative’s fiscal year. Except for our feed division, which operates in a high paced environment year-round, many of our divisions are ready for their busy season to kick into high gear. The changing season is the unofficial start to the busiest time of year for your cooperative. Our full-service agronomy locations are now ready to put their winter’s worth of planning and preparation into action. While most locations have been able to get an early jump on the season with fertilizer applications, soon every location will be buzzing with all hands on deck. In the next few weeks your cooperative will ramp up to the peak employee numbers for the year.
Propane Autogas Now Accessible by the Public
Yesterday, March 21, 2024, Governor Tony Evers signed legislation into law making propane Autogas available for self-service dispensing by the general public in Wisconsin.
Dispensing Propane Autogas Testimony
This week in the State Capitol, both the State Assembly and Senate transportation committees heard testimony on self-service dispensing propane Autogas by removing the training requirement.
2023 Scholarship Winners
For many years premier has offered scholarships to graduating high school seniors that are planning to attend an Ag Short Course or any other 2+ year accredited degree program after high school.
In order to qualify, students must:
- Be a graduating high school senior in the class of 2023.
- Be the child of an active member of Premier Cooperative. Active members must have done over $1,500 of patronage business with Premier during fiscal year 2022.
- Student had to submit an essay on the role and importance of cooperatives in rural America.
Digital Dermititis
Digital Dermatitis, commonly referred to as hairy heel warts, poses many threats to a dairy herd in terms of health, productivity, and longevity. Hairy heel wart typically presents on the back of the heel and can look red and raw initially. The area may have raised, hair – like projections and can extend to the front of the foot. Factors such as stress leading to decreased immunity, poor micronutrient intake, wet and muddy environment, exposure to infected animals, inadequate foot bath and hoof trimming can all lead to DD (digital dermatitis) infections. Unfortunately, this is an industry – wide battle. According to a recent study by the USDA, over 70 percent of dairies in the United States had reported cases of DD. In this article we will go through key factors to prevent and treat digital dermatitis.
Cenex Premium Diesel
Cenex® premium diesel fuels have been enhanced to burn even cleaner for increased power and efficiency, with fewer repairs and minimal downtime. Combining protection, power, and precision, Cenex Roadmaster XL® and Cenex Ruby Fieldmaster® premium diesel fuels outperform the competition by delivering maximum performance and efficiency year-round, and in all operations.
Grain Update
Hopefully everyone had a great Thanksgiving. For some it was a day off before another few days of harvest, as we are still taking grain at all of our locations. We are starting to wrap up harvest for the most part, so I just wanted to say thanks to all for turning to Premier for your grain needs this fall. We were glad to have decent weather. outside of a few stretches of snow/rain/cold.
Preparing for Breeding Season - Male to Female Ratios
Breeding season will be here before we know it and with it, bull turnout. In our area, we are fortunate to have many outstanding registered seedstock breeders who will be marketing bulls this Spring. The opportunity to invest in genetics to improve the profit potential of your operation may have you wondering what exactly you should be looking for.
Feeding for Butterfat
This sensitivity analysis considers the portion of palmitic acid fed as a dietary supplement that ends up as butterfat and energy for body utilization. It assumes that:
The Top 3 Reasons to Switch to Propane Autogas
With diesel prices continuing to rise, there's no better time to rethink how you're fueling your fleet. Propane Autogas can save money, save time, and keep your students safer. Here's the top 3 reason why you should make the switch to Propane Autogas.
Properly Delivering Additional Energy to Dairy Calves
Winters in the Midwest pose many challenges to dairy farmers. One common challenge being how to keep calves not only healthy but also growing through this stressful time. As we know, calves use the energy they take in for maintenance first, then growth last.
January Feed News
Each winter, Premier joins our trade partners to host meetings on beef information to help your herd. This year is NO exception! We’ll be joined by Elanco to discuss feed conversions, Rumensin (a big player over the years in our programs) and the resulting return on investment. We’ll also feature a presentation from Corteva.
From the Manager's Desk
Happy New Year to all of you from the staff at Premier Cooperative and welcome to 2022. I hope everyone was able to slow down over the holidays and spend some much needed time with family and friends. It’s always a little chaotic scheduling and planning for shorter work weeks around the holidays, but also well worth the extra effort once everyone can relax and enjoy their time off.
Long Day Lighting
Photoperiod is the duration of daily light exposure in a 24 hour period. When the photoperiod has been manipulated to 16-18 hours of light exposure; research has shown an increase in milk production, feed efficiency, reproduction, and heifer growth.
Fall Beef Herd Tips
Pasture conditions are variable in southwest Wisconsin this fall, and how you manage this with your cows can have an impact on winter-feeding costs and cow performance next year. What are some things to assess right now?
Energy or protein, do you know what you need?
Harvest is in full swing and soon mother nature will be presenting us with colder temperatures and the white stuff we all have grown to have a love-hate relationship with as livestock producers. With these changes also comes a change in how we manage our beef cattle, transitioning from stored pasture forage to perhaps grazing of corn fodder to feeding of stored feeds.
October Grain Update
Harvest is here. As we are in another busy season, I will keep this short with a few policies and reminders. First, please ensure accuracy at the scale by having drivers check tickets for the correct customer name and disposition of the ticket. If sold at the scale, it will be marked with “Cash” and a price in the top right corner of the ticket. If being applied to a contract or stored, it will be marked with “ETD”, which means Extended Time to Decide. Extended Time to Decide allows you 7 days to choose what to do with your grain. Second, you have the option to defer payment until January 2022, but please let us know this before hauling. Third, all trucks or wagons used to haul treated seed should be completely cleaned out. One kernel can lead to problems for both parties. Last, please drive slowly and be safe around our grain plants. With extra people and vehicles moving around our facilities, additional caution goes a long way. Happy Harvest!
Propane Autogas: The Safest Way to Get Back to School
Propane Autogas is the not just the best economical choice you can make for your district, it's also the safest for your students. Here's why:
September Grain Update
I hope everyone had a great month of August and you are ready for the busy months ahead. Best of luck to all about to chop silage and those who are in the middle of chopping. I have a couple of reminders as we head into the grain harvest season. First, contact one of us today to get put on the list for each location’s harvest text updates. This includes hour changes, weather updates, and other location alerts sent out as needed. You can sign up by asking a grain staff member or on our website under the Grain Marketing tab. Second, keep in mind that Premier offers fall trucking out of the field. If your operation needs some extra hauling, please reach out and we will put together a plan.
This month’s WASDE report brought an unexpected reduction to 2021 crop yields, supporting the market. The USDA estimates corn yield at 174.6 bpa and soybeans at 50.0 bpa. 2021 corn carryouts are projected at 1.12 billion bushels and soybeans at 160 million bushels. 2022 carryouts sit at 1.24 billion and 155 million bushels. These current USDA numbers are keeping a supportive floor under our market, but as we discover how the crop looks both nationwide and for yourself personally in the next few months, be ready with an action plan in place for marketing your grain.
Do you allow your cows to reach their potential?
This topic is one of the most talked about items by dairy cow nutritionists and dairy producers. I wanted to add to prior newsletter articles written by my colleagues where they talked about setting the table for fresh cows by ventilating dry cows and feeding dry cows for success. Building from that I will add on how handling postcalving animals is crucial to those lactating animals reaching peak milk.
2021 Corn Silage Harvest
I don’t know about where you live but in my area in the SW corner of WI a majority of the corn tasseled on or near the July 7-11th this year. Easy rule of thumb is the corn is close to ready or ready to be chopped for corn silage 45 days after tasseling. That means some people could be chopping corn silage around August 18. Yes, weather has a big impact on the time of harvest time. A week ago, I’d say it’d be earlier due to drought conditions and now with rains it may mature normally. The good news is we don’t have to guess about this.
Are you setting your dry cows up for success?
We often focus on the ROI of additives in lactating cow diets as they are the ones currently earning their keep, but without a smooth transition period, they cannot reach their potential. Two of the most important metabolic shifts that occur at calving are calcium and fat mobilization to support milk production. Clinical milk fever is relatively easy to identify, but subclinical milk fever is a pervasive, and often unrecognized problem. Low calcium impacts muscles, the immune system, and the digestive system. The high prevalence of subclinical ketosis has also gotten a lot of attention in the past few years with the introduction of reliable cow side blood testing capabilities and the recognition of the associated decreased milk production. Today, we have research proven feed additives (ex. negative DCAD, choline) to help alleviate these metabolic issues and provide a good ROI to the farm.
Grain Update
I hope everyone has had a great summer so far and have received enough timely rains to keep pushing this crop along. Although it is only August, your Premier grain team is working to be ready for harvest. Shipping grain, cleaning bins, equipment maintenance, and repairs are all being taken care of now. Fall will be here soon enough, and we will be prepared for the rush.
Should you Cool your Dry Cows?
Warm weather is upon us, and with that heat stress enters your mind. The effects of heat stress are obvious in your lactating cows with decreased milk in the bulk tank, but may not be as obvious in your dry cows. Heat stressed dry cows can have a much bigger effect than you may have thought possible. Cows that have heat stress leads to lower production throughout the entire lactation, decreased ability to fight off infections, and affects the potential for their offspring to compete in the herd.
Prospective Planting Report
The USDA released the Prospective Plantings report today and put planted corn acres at 92.7 million and soybeans at 87.6 million acres. This came in below estimates and is very supportive to the corn and soybean markets.
Dairy Financial Drivers
There is no question that the state of the dairy industry, as it has been since my time began at Premier in 2017, has been nothing short of a rollercoaster ride. While there are plenty of moving parts not in a consultant’s or producer’s control, there are still several ways to improve profitability on our dairies today.
Save Your Budget with Propane Autogas
Your district shouldn't have to spend precious time or money worrying about things other than your students. Reduce the hassle and the cost of your fuel with Propane Autogas. Here's how we can save you thousands:
Have No Doubt If There's A Drought
Conditions have been very favorable for a successful calving season this year. Not having to battle mud and the associated challenges that present themselves when we calve in wet, damp, cold environments can lead to some benefits. However, our mindset will soon shift as concerns of plentiful precipitation, pasture quality and longevity may be of greater concern. This month we take a look at a few decision-making opportunities when our region is challenged with drought conditions.
Market Update
We are entering an exciting season in the grain markets. Today’s prices are providing some great contracting opportunities for your 2021 crop. We have seen many producers contract a portion of their new crop corn and soybeans on the way up throughout this rally, and I would encourage all to make a plan and set selling goals prior to harvest. Whether that is selling a portion of your production today or having targets in mind, it is typically better to have a plan and be prepared. As the weather and other factors impacting prices change, so can your plan.
Are We Entering Another Commodity Super-Cycle?
Join Compeer Financial and Arlan Suderman, Chief Commodities Economist at StoneX, for a live webinar series as he shares first-hand perspective on the challenges and opportunities that lie ahead in the market. He will provide unique insight on global macro-economic trends and what it means for the commodities market.
What Causes Price Spikes?
In good old Midwestern fashion, February threw us a winter curve ball. Our nice and mild temperatures dropped drastically and had our furnaces running around the clock to catch up. Typically, winter brings a strain on propane supply as usage increases (that’s why we have you fill out your yearly contracts in the summer). What’s not so typical is for the entire United States to go through cold spells across the board.
Propane is created as a byproduct of refining processes. With Texas’ electric failure, nearly 2/3 of refining capabilities were cut off in the state at the same time as demand was high around the nation. As any economics teacher worth their salt would tell you, when you have less supply and more demand, price goes up. In this case we saw an impressive 50 cent swing almost overnight.
Your cooperative has so many options to keep you and and your family protected against these events. Keep up to date on our Facebook and Website pages to learn more this spring!
Important Grain Notice
Premier Cooperative participates in Wisconsin’s Agricultural Security program. If we fail to pay you for grain when payment is due, you may file a claim under this program. The program may provide some compensation. However, our “estimated default exposure” exceeds program coverage, and we have not filed security to cover the difference, so compensation may cover only a portion of your loss. For more information, you may contact the Wisconsin Department of Agriculture, Trade and Consumer Protection, 2811 Agriculture Drive, Madison, 53708-8911 (phone 608/224-4998).
The Top 5 Reasons Major Bus Companies Implemented AutoGas
Propane Autogas has many different benefits. Here are the top 5 reasons why major bus companies are switching to Propane AutoGas
- COST SAVINGS & PRICE STABILITY
- By switching from diesel to propane , companies were able to realize savings in the tens of thousands of dollars. Plus, propane markets are less volatile so you can lock in a price for the next 1-2 years and better manage cash flow. In the business of bussing, every dollar counts.
- QUICK ROI
- Based on customer provided data, converting to Propane Autogas pays for itself in 10-14 months.
USDA WASDE Report
Tuesday February 9th at 11:00 am is the release of the USDA WASDE (World Agricultural Supply and Demand Estimates) monthly report. The key numbers to watch in this report are the 2020/2021 ending stocks numbers, which are currently very tight. Corn ending stocks were projected to be 1.5 billion bushels in the January report and soybeans were projected to be 140 million bushels. Traders expect these carryout numbers to be reduced in the February report. If you’d like to discuss these report numbers and the price reaction after their release, please do not hesitate to reach out to Jory at our Westby location.
Forward Contracting
Market In the past few months, we have seen rising corn and soybean prices due to reductions in crop size and tightening carryout numbers. This has presented us with selling opportunities that we have not seen in 5-7 years. As we focus on marketing the 2020 crop, we would encourage you to also look at the 2021 crop. Using your own farm’s projected costs and historic/projected yield information, there may be profitable opportunities to forward contract a portion of your expected crop. The first step in this is calculating costs, which can be helped by a simple Excel spreadsheet template that Premier can send you to customize for yourself.
Contact Jory Bossuyt at our Westby location at 608-308-4889 or use the form below to send an email for more information. While we are not certain what prices will do going forward, if it makes sense for your operation to start forward contracting, we are happy to assist.
Diesel Contracting
‘Tis the season for diesel contracting!
Diesel market volatility is one of the largest unknowns that producers and organizations face. The capture of a single oil tanker or an OPEC disagreement can cause massive price swings, leaving those of us in the Midwest reeling. If we learned anything last year, it’s that prices can change on a dime and leave us wondering what might come next.
Energy trends continue to be bullish as we head into a new administration and as vaccinations continue to roll out worldwide. Though we can never be absolutely certain, we are seeing indicators that price will continue to rise over historic lows seen last summer.
Your cooperative offers contracting options to help weather the uncertainty. Whether you are simply looking to lock in a price for your yearly gallons to build a better budget or wanting to hedge risk with piecemeal contracts in the hope of a summer price swing, we can help you find a solution best suited for your needs.
Contact me at the information below to learn more!
A Successful Year
We’ve almost reached the end of 2020. 2020 had a lot of challenges but Americans are resilient so most of us have found healthy ways to cope with our new realities. Here’s to hoping 2021 finds you healthy and prosperous.
Speaking of prosperous, if you read Andy’s Manager’s Desk article, most divisions had a solid year in 2020. The energy division also did well again this year, which will allow us to continue to invest in new trucks and other equipment and services in order to increase safety and efficiency.
The easiest way for us to increase our efficiency is through routing our deliveries properly. That is why we ask our will call customers to call in when they are around 30%. It gives us a chance to work the will call orders into our scheduled delivery orders for the greatest efficiency. If you call in to order your propane, please work with us to avoid delays or additional charges. For your safety and ours, please don’t create an emergency so that our employees have to enter your home to start your propane appliance after you’ve let yourself run out of propane.
From the Manager's Desk
As I mentioned last month, we held our audit in November and I’m very pleased to report that your cooperative had another solid year in 2020. In addition to the expected challenges we face each year, like unpredictable weather and commodity markets, this year was like no other as we navigated through the new challenges caused by the COVID-19 pandemic. Despite the pandemic, and because of your continued support and the dedication of our employee team, we were able to overcome the challenges in fiscal 2020 and post very solid performance. With the exception of grain and convenience stores, all divisions reported increased performance. The grain division was hindered by the poor 2019 growing season and harvest while the convenience stores were impacted by reduced gallons and inside sales as businesses were closed and many employees started working from home. The feed division and Do it Best Hardware and Lumber, as well as ACE Hardware, each saw significant gains again this past year. Overall, your cooperative recorded its best bottom-line performance in its 127-year history. As a result of this performance, we’ll be returning nearly $4.6 million in patronage this spring with 60% (a record $2.7 million) being returned in cash. The cash returned this spring will represent 2% of the patronage-based purchases in 2019, up from 1.6% the past several years. Twenty years ago, in our 102nd year, your cooperative had nearly $26 million in sales, $13.6 million in total assets and about $7 million in member equity. Because of your support, in 2020 we’ve grown sales to about $190 million and reached $149 million in assets while returning almost $40 million in cash over the past 20 years, with $19 million of that in the past five years. Congratulations to all of you as the members/owners of one of the top performing farm and consumer supply cooperatives in the country. On behalf of the employee team and board of directors, thank you for the tremendous support that has made this possible.
Propane Season
Is it just me or does it seem like we went from summer to winter? I was a bit slow in making my cold weather gear accessible. I went bow hunting and I was pretty sure I was going to break off one of my toes when I pulled off my boots. I learned my lesson and my cold weather stuff is now within easy reach. By the way, no wildlife were harmed in the course of this experience.
Wow, what a difference a year makes! The fall harvest this year is a polar opposite to last year’s harvest. Soybean harvesting is nearly finished and the corn harvest is nearly 50% complete in Wisconsin as I write this. The corn moisture is low so that should cut crop drying expenses.
Winter is Coming
I hope you had a nice September. I was able to get away for a few days to Sturgis, SD. I have a friend who is the CEO of a cooperative there so I went to visit him. It was after the motorcycle rally so I missed the huge crowds. The morning I left there was about 3 inches of snow in Spearfish and I heard they got 10 inches in Deadwood.
The early snow reminded me that winter is coming. Now is a great time to ask your heating person to check out your furnace to make sure that it operates safely. While you’re at it, change your filter. If you have a standard filter, they should be replaced every 3 months. When you’re running your air conditioning, the air is going through your filter so it gets dirty even in the summer.
Boost Your Fleet's Bottom Line With This Simple Change
With the unprecedented situation our world faces, we are all experiencing something new. While life has changed in many ways, the need to keep our organizations as efficient as possible remains.
More than anything, we’ve been given the gift of time. Time to look at our systems and procedures, time to reflect on what is making us more productive and what is doing just the opposite.
Change is Good
I hope you’ve been enjoying your summer. I spent almost 3 weeks training with the Army Reserve in late July and August. During our time at Ft. McCoy we were tasked with getting certified on the new Army Combat Fitness Test (ACFT) so that we can test others in our unit and we also went to the rifle range to qualify using the Army’s new Marksman Qualification Test. I’m 58 years old. The word ‘new’ to me doesn’t necessarily trip my trigger (no pun intended). I’ve been doing the same physical fitness and marksmanship tests since 1983 and they’ve been working just fine for me, so why change?
Energy Professionals
I read through my last few newsletters. I feel I need to update you on the projects I’ve been doing on the farm. I’m happy to report that I won the Battle of the Bats. I installed a homemade bat extruder in early May and after watching the bat tornado outside my bedroom window the next morning it was obvious (that was creepy) the bats couldn’t figure out how to get back in. They won’t be missed.
My barn roof project didn’t go quite so well. After replacing the majority of the nails with screws and sealing the crown, I went into the haymow yesterday during a thunderstorm to check my work. It’s still a huge improvement but I still have some leaks. Fortunately I have enough buckets to catch the drips.
What did I learn from this? If you want a professional job done, hire a professional to do the work. Especially when it comes to propane. Today we were unable to install a propane system to a brand new house because the homeowner decided to do the gas piping himself. He used fittings that are not allowed to be used in a propane system, there were no drip legs on appliances and the shutoff valves were closed up inside of the drywall. We red tagged the system because we couldn’t safely hook it up. If the customer had hired a licensed plumber to install the gas piping, he wouldn’t have found himself in this predicament.
DRP & Driving Production Webinar
Delivering more dollars & protecting your investment
June 30th we hosted a webinar with Dr. Tom Overton (Cornell University) and Jessica Sarbacker (State Bank of Cross Plains) on the Dairy Revenue Protection program and driving components and pounds of solids.
Cattle Market & Creep Feeding Webinar
As we wrapped up National Beef Month just a few weeks back, we THANK YOU all for everything you do day-in and day-out to provide us with wholesome quality protein to feed our families and friends. As we put national beef month behind us we still have everyday needs, marketing, and management decisions that need to be made to ensure our operations are profitable and we obtain the desired outcomes we expect in the fall when we decide to market or retain ownership of our calf crop. All this is dependent on market and how many pounds we sell can be influenced by management on farm, allow us to play a role in providing you some insight on dollars you can expect and dollars you could gain.
Get Rewarded For Your Show Animals
In 2002 Premier instituted a new program to reward the youth in our area for their participation in showing of LIVESTOCK at the fairs in our trade area. Over the years we have rewarded thousands of kids with tens of thousands of dollars for their hard work and commitment to animal agriculture.
This year, because COVID has canceled most fairs and pretty much everything else, we are offering a new program. Each student of a Premier member who had planned on showing LIVESTOCK at a fair will be eligible to earn $30 whether or not they were able to show the animal (and earn a ribbon). The student's parent will need to upload to our website a picture of themselves with their animal while holding the attached Premier logo for the picture. The logo can be printed in color or black and white. Each student who successfully uploads a completed form will receive $30 regardless of the number of animals they had planned to show. After receiving the emailed picture, we’ll compile them weekly and send out checks to the students. Look for your picture on our website—premiercooperative.com. Thanks for participating and supporting animal agriculture.
Herds & Overcrowding
Over the past 60 days I have heard rumblings of dairy farms selling cows in attempts to reduce their milk production, only to see their bulk tanks not budge an inch. As a nutritionist traveling the countryside, it is not often a question of “if” herds are overcrowding, but more so “how much.” There is a fine line between the two, and every herd’s line is different. If we want to ride closer to the overcrowding line, here are five steps that can help in successfully doing so.
2020-2021 Propane Contracts
I hope you all are finding reasons to get outside and enjoy yourselves. We saw some great weather this spring. It’s amazing how quickly our farmer patrons were able to get their seeds in the ground this year compared to last year. In talking to a few farmers, some of them had their planting completed this year before they even started planting last year. Great job.
Energy Division Summer Projects
I hope you are enjoying your summer. It’s been an interesting one so far, hasn’t it? I’ve been spending a lot of my free time on my barn roof replacing old nails with new screws. I figured I’d better get at it because I swear it rains harder inside my barn than outside. I’m hoping to wrap up that project soon so I can move on to the next one.
Oil Crashes to Negative Values Due to Lockdowns
I hope this newsletter finds you all healthy. The world has changed a lot since the last newsletter. I’m writing this from my office but that may change. I may be writing it from home next time. Or the pandemic may be over. We have to remain flexible.
COVID-19: Your Farm May be Eligible for Loan Programs
Your farm may be eligible for short-term federal loan programs through the Small Business Administration (SBA).
In the two most recent legislative coronavirus relief packages, Congress created the Paycheck Protection Program (PPP) and broadened eligibility for the Economic Injury Disaster Loans (EIDL) administered by the Small Business Administration. Congress has confirmed that farms are eligible for both programs.
After the initial funds have run out in mid-April, Congress added billions more to each program in late April. Enrollment has already reopened so farms should still contact their financial institutions to discuss potential benefits if they have not done so already. For PPP loans, farms and businesses need to apply through a financial institution. For EIDL loans, farms and businesses apply directly to SBA online.
Premier Cooperative Mini Bulk System
Tired of throwing around 50 lb bags of feed? Our Mini Bulk System is perfect for you!
May Open House Events Postponed
Due to the current concerns over Covid-19 and for the wellbeing of our staff, customers, and the communities, we have made the difficult decision to postpone the open house events scheduled for early May for Mt Horeb, Westby, and La Farge. Since we typically have patronage and equity redemption checks available to pick up at the open houses, this year we will be mailing them out. Our goal is to start mailing out patronage refunds and equity redemptions by age by mid-May.
Bats, Lubricants, and Contracts
I hope this newsletter finds you all healthy. The world has changed a lot since the last newsletter. I’m writing this from my office but that may change. I may be writing it from home next time. Or the pandemic may be over. We have to remain flexible.
It's Time to Rethink Particle Size
It is time to update our recommendations for optimal ration particle size. Physically effective neutral detergent fiber (peNDF) was defined by Dave Mertens in 1997 as the portion of forage or feed particles that are retained on the 1.18mm (millimeter) screen during dry sieving multiplied by the NDF content. This proportion of fiber is effective at stimulating chewing and forming a functional rumen digesta mat.
Over $4 Million in Cash to be Returned!
As a cooperative, we send profit back to our members as cash patronage. Our open house is your chance to stop in and receive your share of last year’s profit! There will be sales and door prizes throughout the day.