Our magazine provides insights into our core business units, along with updates and information about the work we’re doing as your cooperative. You’ll find stories that showcase our progress, highlight key initiatives, and offer a look at how we’re continuing to serve and support our communities. Whether you're looking for updates on our services or want to learn more about the broader agricultural landscape, this issue has something for everyone.
CONNECTIONS SPRING 2025
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Once again, we find ourselves on the cusp of a new crop year in Southern MN and Northern IA. Since the last Connections publication, the remaining questions about crop year 2024 have been answered as well as questions around the 2024 election cycle and broader macroeconomic trends. All along, your cooperative, Central Farm Service, has been watching these dynamics and positioning for how 2025 begins to evolve. If the remainder of 2025 is anything like the first few months, it will certainly remain a dynamic year. Many of the CFS patrons are relieved to see 2024 in the rearview mirror. The early and late weather challenges are well documented and discussed, and there is excitement about getting back to some rendition of ‘normal’ in 2025. CFS concluded another solid fiscal year in 2024 with over $14M in local earnings against $791M of sales. The result was another strong year of cash patronage payout, equity allocations, and equity retirements for CFS patrons. Looking forward, the expectation is for fiscal year 2025 to look quite different at fiscal year end in August 2025 – with much of the reason for this stemming from the back half of calendar year 2024 and how that crop year and the fall season went. Yields were mostly well below average in much of the CFS geography resulting in significantly lower grain volumes into the elevators, less fertilizer application, as well as almost non-existent LP demand for drying. Nonetheless, CFS management remains committed to stewarding your assets efficiently to drive the best possible financial results given the uncontrollable forces in play. The forces beyond abiotic stress (weather) are certainly worth mentioning right now. The newly inaugurated elected officials in America wasted no time in implementing changes to existing policies and legislation. The topics making near-daily headlines and therefore impacting markets daily include tariffs, trade negotiations, technology regulations, labor and immigration, government spending (mostly reducing this), lingering inflation, interest rate policy, and environmental policy.
Each one of these topics has a tremendous impact on how our commodity markets move, and thus our livelihoods in agriculture. This requires us all to be ever vigilant for signals to change and meet whatever new opportunities or challenges emerge. At CFS, we are always excited to evolve to help our owners navigate the future. We are committed to connecting patrons to world markets with the best available market intelligence, supply security, and ultimately service in our space. At CFS we aim to be your consistent source of Trusted Service and Cooperative Value regardless of what is happening with weather, macroeconomics, or the political arena. We continue to look at how we conduct our business every day with the patron owners at the center of our minds. We are humbled to represent our owner base in industry groups, associations, and in front of elected officials. We continue to invest in technology to give our patrons more ways to conduct their business seamlessly and quickly. We are interested in making further investments in speed and scale at key facilities that drive the collective critical mass of the patrons’ operations together in true cooperative spirit. We are evaluating other facilities as they age and asking critical questions about ongoing investments in repairs & maintenance or capital expenditures. We are excited to think about what the CFS patron of 5-10 years from today needs and to act accordingly with future decisions on the cooperative’s assets. As crop year 2025 develops, CFS is excited to be a part of your operation. There is no doubt that we will together find clarity on more macroeconomic trends while leaning into new opportunities as they develop. We strive to be dependable trusted advisors while navigating markets and technology. Thank you for the opportunity to serve you each day and thank you for your business!
Sincerely,
Chief Executive Officer
Preparing for a A Successful Growing Season
Tristan Wilmes, Vice President of Agronomy
As the upcoming growing season approaches, our team is working diligently to ensure a smooth and productive start. From finalizing field plans to preparing equipment and monitoring market trends, we’re committed to providing the support and resources you need. Here’s an update on our preparations and key industry insights: Optimizing Field Plans and Planting Recommendations Our agronomists are finalizing field plans, carefully selecting the right hybrids and crop protection programs to maximize yields and meet your expectations. The Central Advantage team is developing variable rate recommendations, ensuring you get the most out of every acre. Equipment Readiness and Preventive Maintenance Our operations team has been conducting preventive maintenance on all application equipment throughout the winter to keep everything running smoothly. Partnering with local service experts, we ensure our machines are field-ready, reliable, and efficient—minimizing downtime when it matters most. Warehouse & Fertilizer Preparations Our warehouse staff is actively managing seed and crop protection inventory, ensuring timely deliveries to your farm. Dry fertilizer is already stocked in our buildings, and liquid fertilizer tanks are full and ready for shipment. With fall fertilizer volumes down compared to last season, we anticipate a busy spring and summer, with high demand for liquid fertilizer from pre-emerge through sidedress applications. Fertilizer Market Trends Nitrogen prices are expected to remain strong this spring due to import delays and Midwest terminal inventories being sold through March and most of April. Phosphate prices remain high relative to corn prices and will likely stay elevated until production rates stabilize, or China resumes exports to the global market.
Tariff Impacts on Ag Inputs With shifting trade policies and potential tariffs, we are closely monitoring impacts on key agricultural inputs: Potash from Canada is under scrutiny, potentially affecting availability and pricing. Crop protection products from China could see price increases due to tariffs, as China produces 70% of the active ingredients used in U.S. crop protection products. To mitigate these risks, we've expanded warehouse and tank storage in Clarks Grove and stocked up on key products, ensuring availability and price stability for our growers.
Managing Tar Spot in 2025 Tar spot will be a major concern for corn growers in our trade territory this season. The disease was widespread in 2024, fueled by wet and humid conditions. To combat tar spot in 2025, we recommend:
Selecting disease-resistant hybrids Timely foliar fungicide applications
Our team is here to help you develop the best integrated disease management strategy for the season ahead. We’re Here to Support You At CFS, we are committed to ensuring you have the right products, services, and expertise for a successful growing season. Thank you for trusting us as your agriculture partner—we’re with you every step of the way.
MAXIMIZING YIELD Lessons from 2024 to Build a Stronger 2025
Courtney Gilliland, Regional Sales Agronomist
Mother Nature took us on a rollercoaster this year, providing valuable learning experiences—many of which were encouraging! Looking back, the biggest challenge was excessive rainfall. Yet, despite the tough conditions, there were areas within the CFS territory that saw success. What made the difference? A few key factors helped growers achieve yields that exceeded expectations: sticking to a plan, focusing on fertilizer, seed genetics, and fungicide applications. Key Takeaways for Success: 🔹 Seed Selection – Choosing the right genetics is essential! At CFS, we offer the latest and best options, from advanced above-ground traits to the newest RNAi technology. Properly placing each hybrid based on its characteristics ensures plants perform at their best in specific conditions. The right seed selection sets you up for success. 🔹 Fertilizer Plan – The growers who saw the greatest success were those who stuck to their fertilizer plans. With Central Advantage, we dialed in on each management zone using the 4Rs: Right Source, Right Rate, Right Time, and Right Placement. Those who continued to push their A zones despite excessive moisture saw the best yields, reinforcing how crucial fertilizer is in stressful conditions. 🔹 Fungicide Applications – Plant health and stress mitigation played a major role this year. While disease pressure was minimal due to wet conditions, fungicide applications produced some of the highest responses we’ve seen in a decade. The newest SDHI-based fungicides focus on stress mitigation and plant health, helping plants breathe and photosynthesize properly—ultimately feeding the ear! Adding micronutrients like Max-in Ultra ZMB along with YieldOn at VT timing also resulted in a higher ROI. As we move into 2025, what can you focus on to improve your operation? Seed, fertilizer, and fungicides remain three essential pillars for growing a healthy crop, no matter the challenges each season brings. Connect with your local CFS agronomist to build a plan for success in 2025. Never give up on your crop!
"Resilience and a solid plan turns challenges into success."
Transforming Farming for the Future: The Power of AI and Data Artificial intelligence (AI) and data analysis is making farming “smarter”, helping farmers grow more food while using fewer resources. With the world’s population growing fast, farmers need to produce more while protecting the environment. AI-powered tools like UAVS - drones and CFS’s in-house data program are helping farmers make better decisions. One of the biggest benefits of AI is precision. Drones are a tool that we can use to apply fungicides and insecticides in a very precise manor. They allow us to perform work when field conditions aren’t fit for sprayers. They operate on accurate GPS systems to provide exact applications right down to the row. Drones are a tools that are only going to become more popular with advancing technology. Advanced technology is also great for analyzing your on-farm data. We have the power to look at vast amounts of data and turn them into actionable insights that drive better decision-making. Our Central Advantage program empowers farmers to pinpoint precisely where inputs of fertilizer and fungicide are needed to optimize efficiency and cost. Through detailed reports and tailored recommendations for your operation, Central Advantage helps growers identify yield-limiting factors and make informed decisions, ultimately increasing profitability while promoting sustainable farming practices. In Conclusion, technology is going to continue to advance quickly around us. It is imperative that we take advantage of these opportunities. Operations that integrate these ideas into their farm will be first to find the great results that new technologies provide. Andrew Thilges, Regional Sales Agronomist
Regenerative agriculture is a farming practice focused on restoring soil health by implementing methods like cover cropping, diverse planting, reduced tillage, and livestock integration. It has the potential to significantly impact the future of food production by mitigating climate change, improving biodiversity, and enhancing food security—primarily by capturing carbon in the soil and increasing resilience to extreme weather events. However, widespread implementation will require policy changes, market incentives, and farmer education to overcome potential challenges such as initial costs and learning curves. REGENERATIVE AGRICULTURE: Restoring Soil, Sustaining the Future Sagan King, growth Specialist
Key Impacts of Regenerative Agriculture
Improved Soil Health: Regenerative practices promote healthy soil structure, improving water infiltration, nutrient availability, and reducing erosion.
Biodiversity Enhancement: Diverse planting practices attract a wider range of b eneficial insects and wildlife, boosting farm biodiversity.
Resilience to Extreme Weather: Healthy soils with high organic matter can better withstand droughts and floods.
Enhanced Food Quality: Some studies suggest that food produced through regenerative practices may have higher nutritional value due to improved soil health. Climate Change Mitigation: By storing more carbon in the soil, regenerative agriculture can significantly reduce greenhouse gas emissions from farming.
Potential Challenges to Widespread Adoption
I nitial Cost: Implementing regenerative practices may require upfront investments in new equipment or changes to farming methods.
Learning Curve: Farmers need to acquire new knowledge and skills to effectively implement regenerative techniques.
Market Access and Incentives: Currently, there may not be sufficient market demand or financial incentives for farmers to fully transition to regenerative agriculture.
How It Could Affect the Future
Consumer Demand: As consumers become more aware of the environmental benefits of regenerative agriculture, demand for products labeled as "regeneratively grown" may increase, influencing market dynamics. Policy Changes: Governments may implement policies to encourage the adoption of regenerative practices, such as carbon credits for farmers who sequester carbon in their soil.
Research and Development: Continued research is needed to optimize regenerative practices for different regions and crop types.
Farmer Education and Training: Programs to educate farmers on the benefits and implementation of regenerative agriculture are crucial for widespread adoption. Overall, regenerative agriculture has the potential to be a significant tool in improving food security and enhancing environmental sustainability in the agricultural sector. However, its success will depend on overcoming challenges related to market incentives, farmer education, and policy support.
YOUR STORY MATTERS We’re thrilled to announce our new campaign: Cooperative Family Stories Honoring Your Legacy, Shaping Our Future. Share it with Us!
WHAT’S IT ALL ABOUT?
WIN BIG AND GET RECOGNIZED: 🎥 Be featured in a professionally produced video. 🏅 Be honored as special guests at the 2026 CFS Annual Meeting. 💰 Compete for incredible prizes: 1st Prize: $5,000 2nd & 3rd Prizes: $2,500 each $50 CFS Account Credit just for applying We want to celebrate YOU – the families who make CFS and our legacy cooperatives so special. Share your story about your connection to CFS, your farming journey, and the role the cooperative has played in your family’s success.
HOW TO ENTER:
📧 Apply online: https://www.cfscoop.com/who-is- cfs/cooperative-family-stories or use your phone’s camera to scan the QR Code below
📅 Deadline: All applications must be received by April 30, 2025. 📞 Questions? Contact Stephanie Peterson at speterson@cfscoop.com or 507-475-3328 for more details.
Share your story. Honor your legacy. Inspire the future of farming with CFS!
Challenges, Opportunities, and the Road Ahead Reflecting on Two Years
This growing participation underscores the value these tools provide in managing price risk and securing favorable returns.
Nick Jackson, Vice President of Grain
As I mark my second full year at CFS, I want to take a moment to reflect on both the challenges we have faced and the opportunities that lie ahead for our grain division. Last spring’s relentless rain created difficult growing conditions, leading to washed-out crops and struggling replants. As a result, harvest delivered bushels to CFS fell significantly short of the previous year. Corn deliveries were down by 4 million bushels, and soybean deliveries declined by 1 million bushels.
Freight: The Backbone of Our Business Transportation is the foundation of everything we do at CFS. Whether it’s moving grain to market, delivering fertilizer to your fields, or ensuring the necessary ingredients arrive at our feed mills, a reliable and efficient freight network is essential to our success. In this edition, we’re taking a closer look at the logistics efforts that keep our business running. Senior Merchant Kevin Schweer will provide insights into the grain logistics at our Delavan, MN, elevator, focusing on the challenges and opportunities presented by our partnership with the CP railroad. Historically, our success in shipping grain via CP has been limited, but with the recent merger of CP and KCS to form CPKC, the first railway to connect Canada, the U.S., and Mexico seamlessly, we are optimistic about new opportunities. Additionally, our Transportation Manager Darren Ohl will share key performance highlights from our trucking operations. With 30 years of experience in transportation and logistics, Darren has been instrumental in driving efficiencies within our fleet, helping us serve our patron base more effectively. Looking Ahead As we continue navigating an ever-evolving market, the resilience of our team and the trust of our farmer- owners remain our greatest strengths. Freight and logistics will be central to our ability to serve you better, and we are committed to exploring every opportunity to optimize our supply chain. Next, Kevin Schweer will take a deeper dive into our Delavan grain elevator and the evolving rail logistics landscape. With new connections and greater possibilities on the horizon, we look forward to the role CPKC could play in expanding our transportation capabilities.
Despite these setbacks, our origination team remained steadfast in helping farmers manage grain pricing risks. Their commitment to supporting producers has never been stronger, ensuring we navigate market volatility together. Growing Demand for Specialty Pricing Programs One of the most encouraging trends this past year has been the increased participation in our specialty grain pricing programs, such as Market Advantage and Average Price. Last year, farmers enrolled approximately 4.2 million bushels in these programs, an impressive achievement in its own right. However, this year, interest has surged dramatically. As the charts illustrate, enrollments have nearly doubled to 9.2 million bushels, and some programs are still accepting additional bushels.
DELAVAN'S CHANGING ROLE IN THE CORN MARKET
In 2012, Delavan was established on the Canadian Pacific (CP) railroad with high hopes of revitalizing the glory days of shipping corn to the southern chicken market. However, the landscape of the corn industry has shifted dramatically since the dawn of the century, presenting both challenges and opportunities for Delavan. Initially, Delavan was poised to become a key player in supplying corn to the southern United States. Post 2008, the ethanol boom significantly increased local corn demand in southern Minnesota, driving up prices. As a result, southern markets began sourcing cheaper corn locally, diminishing Delavan's competitive edge. Historically, the most lucrative destinations for corn shipments on the CP railroad have been the Pacific Northwest (PNW). However, Delavan faces stiff competition from origins in Central Minnesota and North Dakota, where corn is cheaper, and freight rates are lower. These regions are closer to the PNW, making them the preferred sources for fulfilling corn demand. In rare instances, such as the 2019 drought in Western Canada, the demand for corn extends into southern Minnesota. These events provide a temporary boost for Delavan, but they are not consistent enough to rely on for long-term success. The recent closure of Green Plains' Fairmont facility has opened a potential avenue for Delavan. Fairmont processed 40 million bushels of corn annually, equivalent to 93 trains. This presents an opportunity for Delavan to capture some of this business, but it must contend with the Union Pacific (UP) railroad, which dominates the local market. The UP has a stronghold in the local corn market, with strong demand in California, Arizona, and Idaho, as well as access to the PNW, Gulf, and Mexico. The UP has historically pulled corn from origins in Nebraska, Iowa and Southern MN which are all in a similar market environment with strong corn demand from local ethanol plants and livestock. A significant development occurred on December 14, 2021, when the CP acquired the Kansas City Southern (KCS), creating the first single-line network connecting the U.S., Canada, and Mexico. This merger has started to yield more competitive rates for shipments to Mexico, a crucial market for Delavan. Delavan is set to load its first soybean train to Mexico in May, marking a significant milestone. There is cautious optimism that corn shipments will follow, especially as the CP-KCS merger continues to streamline operations and improve competitiveness. While the local crop is currently short, the trajectory suggests that Delavan could see increased volume next year. Delavan's journey has been marked by challenges and shifting market dynamics. However, with strategic adjustments and the potential benefits of the CP-KCS merger, there is hope that Delavan will find its footing and thrive in the evolving corn market.
Kevin Schweer, Lead Grain Merchandiser
Building a Strong Grain Marketing Plan
Grain marketing is a crucial aspect of agriculture, requiring strategic planning to maximize profits while minimizing risk. A well-thought-out grain marketing plan helps ensure you’re making informed, disciplined decisions. Here are key steps to consider when creating your plan: Amy Nelson, Lead Grain Marketing Advisor - West
4. Factor in Storage and Interest Costs Consider whether storing grain is financially beneficial. Sometimes, selling immediately may be more profitable than incurring storage costs or paying interest on loans. 5. Utilize Crop Insurance Protect against yield losses and price declines with crop insurance. This safety net provides flexibility in marketing decisions. 6. Leverage Marketing Tools Use a mix of marketing tools like forward contracts, futures, options, and hedge-to-arrive contracts to lock in prices and protect against market fluctuations. Diversifying your approach helps spread risk. 7. Set Sale Deadlines Establish specific deadlines for selling your grain. Timing sales around historically high price periods can improve profitability.
1. Set Clear Goals Establish your and production cost goals for the year. This includes understanding your breakeven costs and setting realistic profit margins. marketing 2. Divide Your Grain Into Units Breaking down your total grain inventory into smaller portions allows for more strategic sales. For example, if you have 25,000 bushels, you might divide them into five 5,000-bushel units to manage risk and take advantage of price fluctuations. 3. Establish Price Targets Set price targets for each unit based on market trends and your cost of production. For instance, if your target average price is $4.50 per bushel, you might set incremental targets at $4.30, $4.40, $4.50, $4.60, and $4.70. Be disciplined in sticking to these targets to avoid emotional decision-making.
Avoid These Common Grain Marketing Mistakes
Being Too Rigid – Sticking to a plan that no longer aligns with market conditions can be just as harmful as having no plan at all. Lack of Diversification – Relying on a single marketing strategy increases risk. A mix of tools helps balance exposure.
8. Monitor Market Conditions Stay informed about market trends, weather patterns, and global supply- and-demand shifts that impact grain prices. Regularly reviewing these factors helps you make informed decisions. 9. Use Seasonal Price Patterns Grain prices often follow seasonal trends. Understanding these patterns can help you time sales for maximum profitability. 10. Utilize Technology Market analysis tools and grain marketing apps provide real-time insights to help track trends and improve decision-making. 11. Seek Expert Advice Consult agricultural economists, grain marketing advisors, or extension services for professional guidance on developing your marketing strategy. 12. Regularly Review and Adjust Your Plan Flexibility is key. Review your marketing plan regularly and adjust based on market conditions and financial goals to stay on track.
Even the best-laid plans can be undermined by common pitfalls. Here’s what to watch out for: Not Having a Written Plan – A verbal strategy often leads to emotional, impulsive decisions. A written plan keeps you focused. Ignoring of Production – Without knowing your breakeven cost, you risk selling grain at a loss. Your Cost Chasing the Highest Price – Holding out for the perfect price can backfire. Instead, set realistic price targets and stick to them. Underutilizing Marketing Tools – Not using contracts, options, and hedging strategies can expose you to unnecessary risk. Overreacting Market Volatility – Short-term price fluctuations shouldn’t dictate your entire strategy. Keep a long- term focus. to Neglecting Market Trends – Failing to track weather, supply, and demand trends can lead to missed opportunities.
CFS Grain Marketing: Your Trusted Partner
When you choose CFS Grain Marketing, you don’t have to navigate these decisions alone. Our knowledgeable Grain Advisors are with you every step of the way, helping you create and execute a strong grain marketing plan. Plus, you’ll have access to our diversified portfolio of contract offerings and services to enhance your marketing strategy.
KEEPING CFS MOVING The Impact of Our Transportation Team
Darren Ohl, Transportation Manager CFS
While grain origination and pricing strategies are key to our success, none of it would be possible without the logistical backbone of CFS, our transportation team. This team ensures that grain, feed, fertilizer, and other essential products move efficiently across our service area. From farm pickups to major regional deliveries, their work is essential in keeping our supply chain running smoothly.
EXPANDING ON-FARM GRAIN PICKUPS
One of the most valuable services we provide to our patrons is on-farm grain pickup, offering convenience and efficiency during both harvest and storage seasons. In 2023, CFS trucks picked up 750,000 bushels of grain from 85 different farm sites, equivalent to approximately 790 semi loads. In 2024, demand for this service grew significantly, with our fleet handling 1.3 million bushels across 84 farms, amounting to roughly 1,365 semi loads. This growth highlights the increasing role our transportation network plays in helping farmers move grain efficiently from their bins or their fields to market.
MORE THAN JUST GRAIN Beyond grain transportation, our fleet plays a critical role in supporting other aspects of CFS operations. Since May 2024, our division has transported 37 tanker loads of diesel exhaust fluid (DEF) from Sioux City and East Dubuque, helping keep equipment running cleanly and efficiently. Our side dump trailer has hauled 60 loads of gravel, while our lowboy trailer has completed approximately 35 heavy equipment moves, supporting internal needs. To further our agronomic efforts, our hoppers, and tankers transported 1,033 loads of liquid and dry fertilizer. In Feed we kept our grain hoppers loaded both ways delivering 10,220 loads of feed ingredients. Last, but certainly not least, more than 15,000 loads of grain were shipped to local end users.
REACHING ACROSS THE MIDWEST CFS trucks cover an extensive territory, making regular stops at key agricultural and industrial hubs, including: · Minnesota: St. Paul, Willmar · South Dakota: Garretson, Lennox · Iowa: Sioux City, Fort Dodge, Mason City · Illinois: East Dubuque These routes support our grain marketing efforts, feed ingredient purchases and energy products, and ensure that vital inputs like fertilizer, fuel, and feed reach their destinations on time.
A WELL-EQUIPPED FLEET
To keep up with these demands, our fleet consists of 30 power units, including 20 Kenworth tractors (2021-2025 models) and 10 Volvo tractors (2015-2025 models). Our diverse trailer lineup includes: · 29 Wilson grain hopper trailers for efficient grain movement · 6 liquid fertilizer trailers to support agronomy operations · 1 side dump trailer for rock and aggregate hauling · 1 lowboy trailer for heavy equipment transport · 1 53’ dry van trailer used for internal distribution of bagged feed products
Our transportation team continues to refine operations to better serve our patrons. Whether it’s picking up grain from the farm, delivering key inputs, or supporting infrastructure projects, their work ensures CFS remains a reliable partner in the region’s agricultural economy. DRIVING EFFICIENCY FORWARD
CFS’s Commitment to Reliable Energy Solutions in a Changing Landscape
ENERGY UPDATE
Steve Scholtz, Vice President of Energy
As we reflect on the past few months, it’s clear that the 2023-24 season has been one of unexpected shifts and adjustments. The start of our new fiscal year for dryer gas initially looked to surpass the previous fall, with early indications in August pointing toward a strong demand. However, the warm, dry, and windy conditions in September changed the landscape significantly, allowing much of the corn to dry down in the field. While this was beneficial for our producers, it altered our supply plans moving forward. November brought unseasonably warm weather, but by December, temperatures began to cool. January was marked by extreme cold, though snowfall remained minimal. February has continued this trend, with frigid temperatures and little precipitation. Despite these weather fluctuations, our LP service team has remained extremely busy throughout the fall and winter.
From setting up new LP tanks to bringing customer systems up to current standards, we have worked diligently to ensure safe and reliable service for our member-owners. Refined fuels also faced an evolving season. The fall began slowly due to dry conditions, with many growers waiting for rainfall to soften the top crust of soil before proceeding with fieldwork. Once moisture arrived, field operations took off, and tillage was completed efficiently across most acres. Fortunately, the diesel supply remained stable, and we experienced no supply issues throughout the season. As we continue through 2024, CFS remains committed to delivering the reliable energy solutions our members depend on. Whether it’s propane for home and farm use, refined fuels for field operations, or the support services to keep everything running smoothly, we appreciate the trust you place in us. Thank you for your continued partnership, and we look forward to serving you in the seasons ahead.
Maximize Equipment Performance with Cenex Lubricants and CFS Support
Eric Hopp, Energy Sales Manager
Cenex Lubricants have been a trusted name for many years, proving their reliability across a wide range of applications. At CFS, we take pride in offering a comprehensive lineup of high-quality lubricants, from conventional oils to advanced synthetic options. Over the years, the industry has evolved from using straight 10W or 30W oils to today's full synthetic 5W-40 oils for diesel engines. As equipment specifications continue to change, we remain committed to keeping up with market advancements to ensure our customers have the products they need. We provide a full range of engine oils, gear lubes, greases, and hydraulic oils. If you're looking for a specific application or need assistance cross- referencing a product, our team is happy to help. Let us know your needs, and we’ll connect you with a CFS sales representative. Bulk Oil Programs & Warranty Protection CFS, in partnership with Cenex, offers valuable programs for bulk oil users. As equipment demands evolve, so do our solutions: Bulk Refresh Program – Helps offset costs for upgrading your bulk oil storage system, ensuring it meets your changing operational needs. Cenex Total Protection Plan® – Provides up to 10 years or 10,000 hours of warranty coverage on qualifying engines and transmissions. This plan is an excellent way to safeguard against costly repairs. To learn more about our lubricant solutions, bulk programs, or warranty options, contact us today! Our team is ready to help you find the best fit for your operation.
Propane Lawn Mowers Affordable, Efficient, and Eco-Friendly Power for Your Lawn!
Cost-Effective and Low Maintenance 01.
One of the biggest advantages of propane mowers is their cost-effectiveness. Propane is typically less expensive than gasoline, reducing overall fuel costs. Additionally, propane engines are more fuel-efficient and run longer on a single tank compared to gasoline-powered mowers.
02.
Efficient Performance Propane engines are known for their high performance and reliability. With a higher octane rating than gasoline, propane engines run smoothly and last longer. Propane burns more efficiently, ensuring consistent power and performance throughout each use.
03.
Environmentally Friendly
For those looking to reduce their environmental impact, propane mowers are an excellent choice. Propane has a lower carbon content than gasoline, producing fewer greenhouse gas emissions. It’s also nontoxic and won’t contaminate soil or water if it leaks. Propane engines also run cooler, reducing heat-related wear and tear while lowering harmful emissions even further.
Additional Benefits Easy Storage & Handling: Propane tanks are simple to store, transport, and handle safely. Quick Refueling: Swapping propane tanks is fast and convenient, eliminating downtime. Consistent Power: Propane delivers reliable performance with no drop-off as the tank empties.
Want to learn more? Contact your local CFS Energy representative to see if a propane-powered lawn mower is right for you. Discover how propane can help you save money, reduce emissions, and keep your lawn looking great - all with a cleaner, more efficient power source.
Understand Key Influences on the Feed Industry Glenn Eben, Vice President of Feed
As we assess the feed industry and ingredient supplies, it’s essential to consider the businesses that directly impact feed manufacturing in Minnesota— especially within the CFS footprint. Ethanol Industry Minnesota has long been a national leader in ethanol policy and production. It was the first state to mandate ethanol use in fuel, and today, state law requires that all gasoline sold in Minnesota contain 10% ethanol (E10). Currently, 18 ethanol plants operate within the state, producing over 1.35 billion gallons of ethanol in 2023, making Minnesota the fifth-largest ethanol producer in the U.S. Beyond fuel, ethanol plants generate essential feed ingredients, including high-protein animal feed and distillers’ corn oil. These byproducts play a crucial role in livestock nutrition, impacting the availability and pricing of key feed components. Soybean Crush Industry The soybean processing sector is set for significant expansion in the coming years, opening more domestic opportunities for soybean consumption. Since whole soybeans are rarely used in feed, they are crushed to produce soybean meal (a primary livestock feed ingredient) and soybean oil (used in food and biofuels). To date, 23 new crush plant projects have been announced across the U.S., with 13 new plants and 10 plant expansions. These projects could add 750 million bushels per year to U.S. crush capacity. However, growth is largely tied to renewable diesel demand, as soybean oil is a key input for biofuel production. Some crush plant expansions are even being developed alongside renewable diesel plants in joint ventures.
While these announcements signal long-term potential, actual implementation depends on factors such as state and federal policies, permitting, and financing. Until these projects break ground, market uncertainties will continue. Tariffs and Trade Policies Trade policies continue to impact the feed supply chain. Recent discussions on tariffs—including those affecting goods from Canada and Mexico—have raised concerns about supply chain disruptions and potential economic fallout. Unlike previous targeted tariffs, these proposed measures are broad-based, and aimed at addressing national interests such as border security. With shifting trade policies, evolving biofuel industries, and plant expansions, ingredient availability for livestock feed remains uncertain. At CFS, we are proactively working to navigate supply challenges, including shortages caused by plant idling, overproduction, and trade restrictions. Thank You for Your Support We appreciate the trust our customers place in us. Thank you for your business over the past year, and we look forward to serving you in the year ahead. Wishing you a safe and prosperous season!
“Success in the show ring is a reflection of hard work, dedication, and the right nutrition.”
Congratulations to Taylor Ford! Taylor earned 5th Overall Breeding Heifer at the Jackrabbit Memorial Show Set Your Livestock Up for Success This Season with CFS! Prepare Your Livestock for Success This Season As winter fades and summer approaches, it’s time to plan for your animals’ nutrition. Providing top-quality nutrition year-round is essential, and as the weather improves, your approach shouldn't change. Minerals play a vital role in keeping cows healthy, productive, and fertile. A well-balanced, year-round mineral program supports everything from hoof and skin health to reproductive success and it pays off in the long run. Take advantage of the CFS Spring Mineral Promo now through May 1st. Contact Trevor Mente or any member of our Beef Sales Team for details. Get Your Show Animals Ring-Ready With county fair season right around the corner, now is the time to focus on nutrition for your show animals. A well-planned feeding program can make all the difference in the ring. CFS offers a wide range of high-quality show feeds for breeding heifers, market steers, and bucket calves. Recently, a CFS customer found success at the Jackrabbit Memorial with a show heifer proudly fed Purina Show Feed sold through CFS. Let us help you achieve the best results for your livestock this summer! Want to learn more about Livestock Show Feeds? Contact Trevor Mente at 507-920-2056. Let’s fuel your success in the ring! Trevor Mente, CFS/Purina Livestock Production Specialist
PK602 Cutout Report Rundown Brad Kluver, Swine Production Specialist
Risk management remains a top priority in our industry, even as we enter what appears to be a more favorable period than the past 18 months. Now more than ever, ensuring profitability is essential. However, effective risk management—particularly when pricing hogs—is often easier said than done. Pricing grain tends to be more straightforward for most of us. We understand the relationship between futures, basis, and cash price, and we can use contracts within those components to lock in a sales price. While factors like weather and yield still introduce variability, the process itself is relatively clear: we can price a set number of bushels and know our expected revenue. That doesn’t make it easy, but at least it follows a defined structure.
Pricing hogs, on the other hand, is a different story—more like the Wild West. Unlike grain, we can’t simply check a packer’s cash bid page. Each producer has a slightly different pricing formula, but most use some combination of daily USDA cash hog prices, a percentage of the cutout, the lean hog index, and other variables. It’s about as clear as mud. And predicting the basis at the time of delivery. That’s more of an art than a science—abstract art at that. That’s where the PK602 Daily Cutout Report comes into play. Many hog producers reference this report as a key part of their pricing formula or as a major component of the lean hog index. But what exactly does it contain? At first glance, the AMS/USDA report can seem overwhelming. It includes a handy price breakdown for each primal cut and the entire carcass, alongside load volume data. Then, it’s followed by ten pages of detailed meat classifications, weights, price ranges, and volumes. Without context, it can be difficult to make sense of it all.
Here are a few key points to keep in mind: The report only includes negotiated meat that falls under mandatory price reporting.
A plant must process at least 100,000 pigs per year to be required to report. Further processed meats (e.g., bacon) do not fall under mandatory reporting. Each line item represents a specific cut and packaged product—any changes to the cut, packaging, or added ingredients place it under a different category. Meat priced under formulas or non-carcass premiums (e.g., breed-specific programs or Prop-12 compliance) appears in a separate report, not the cutout report. Exports do not appear on the report, except for sales to Canada and Mexico, which are included.
In terms of volume, the cutout report captures a larger market snapshot than a cash hog formula, covering 15-20% of daily pork production. However, that’s the total load volume. The sample size impacting each primal value is much smaller. Take bellies, for example: the report lists 29 line items, but only two—Derind Belly 9-13# and Derind Belly 13-17#—actually determine the belly primal value. Despite bellies making up 16% of a pig’s yield, they account for only 2-3% of daily wholesale volume, raising important questions about market share and price discovery. Fortunately, the team at AMS/USDA is always willing to answer questions about the cutout and how it’s calculated. While understanding the report won’t necessarily make risk management easier, it does provide clarity—and that’s an important step toward more informed decision- making.
Keeping Us Warm in the Winter
Sue Sangren, Feed Admin
With the growing popularity of backyard chickens, I wanted to share an article by Patrick Biggs, Ph.D., published in a recent Purina newsletter. CFS offers a poultry feed line called Fancy Feathers, formulated by Purina Animal Nutrition exclusively for our private label. In addition to Fancy Feathers, we also offer Purina brands mentioned in the article.
There’s nothing as cozy and snug as your hens in their winter chicken coop. But many flock raisers wonder how to keep chickens warm in winter. Follow our 10 cold weather flock tips and know a bird’s thick feathers are a natural protective coat, so most breeds are well-equipped for winter without the need for a chicken coop heater.
Is a heat lamp and chicken coop heater necessary?
There’s no need to buy expensive heat lamps or a chicken coop heater for your flock. Chickens, especially cold-weather chicken breeds (see breed suggestions below), can withstand winter temperatures without supplemental heat. A chicken’s body temperature is around 106 degrees Fahrenheit, and they have their own protective layer of feathers to keep them warm. If you feel it is necessary to provide a chicken coop heater, only provide enough heat to raise the temperature a few degrees. The hens will adjust to the cold temperature, but if it is 70 degrees Fahrenheit in the coop and 0 degrees Fahrenheit in the run, birds will not be able to regulate their body temperature. What to feed chickens in the winter? A common myth is to feed oatmeal to birds in the winter. This is not a beneficial treat for chickens. Oats contain types of fiber that chickens can’t digest, which can cause the contents of the digestive tract to thicken. This leads to a reduction in the bird’s ability to digest and absorb nutrients. Greens are also unnecessary. Hens may pick at hay and spread it around, but they are not going to eat it.
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Consider heated waterers and plan to feed and water your flock more often when it’s below freezing. Energy needs increase in winter – animals expend a considerable amount of energy to stay warm and will eat more feed. Complete layer feeds include all the energy hens need. The 90/10 rule still applies in winter. Limit treats to less than 10 percent of your chickens’ overall diet and provide a healthy treat, such as Purina® Farm to Flock® Larvae for Ladies™ hen treats or Purina® Farm to Flock® Protein Blend for Hens treats. How do you keep feed and water from freezing?
Ingoude Company Hens will spend more time in the coop, so offer enrichment activities. Logs, sturdy branches, old ladders or chicken swings work well to provide new entertainment. You can also place a Purina® Flock Block® supplement in the coop for a nutritious place for your hens to peck. What are some good cold weather chicken breeds? If you live in a very cold climate, consider a cold-tolerant chicken breed like Araucana, Australorp, Silkie Bantam, Minorca, Orpington, Rhode Island Red, Barred Rock, New Hampshire Red, Delaware or Wyandotte. Your chicken’s thick feathers are a natural protective coat, so most breeds are well-equipped for winter weather. Good ventilation in your winter chicken coop is key to a healthy coop environment, and that means you should not completely seal your coop. Some air needs to be exchanged to prevent ammonia build up. Open the top vent or higher windows slightly so fresh air can enter and stale air can exit. Should a winter chicken coop be dry? While many humans enjoy a tropical, high-humidity environment during cold weather, your chickens will not. Moisture must be removed from the winter chicken coop by removing any wet spots daily. Provide more bedding than you would in other seasons, so birds have a place to burrow and stay cozy. Do chickens need more coop activities in winter? Do chickens lay eggs in winter? The shorter days of winter often signal time for an egg-laying break. Your ladies may stop laying eggs, lose old feathers, and grow new ones. This annual slowdown is known as molt. Molt can last 8 to 12 weeks, and you’ll notice a decrease in egg production. For sustained egg production, provide at least 16 hours of light per day. Use one incandescent 25-watt or LED 3- to 9-watt bulb per 100 square feet of coop space on an automatic timer. Do chicken eggs freeze? Temperatures below freezing result in frozen eggs. As the egg freezes, the contents expand and will cause the egg to crack. You should plan on increasing your trips to the nesting boxes to help prevent cracked eggs. Should a winter chicken coop be draft free? Secondly, the blood entering the lower legs and feet is cooled by the blood returning to the heart. The blood returning is thus warmed by the blood going to the toes. The tissue receives just enough heat to avoid frostbite while providing enough oxygen to keep its system functioning. So yes, let your chickens stay outside in the winter and enjoy the snow! Can chickens stay outside in the winter? Birds can tolerate snow, cold air, and ice. There is very little muscle in the lower part of bird legs and feet. The movements are controlled by tendons that stretch from the upper part of the legs down to the toes.
2025 ECONOMIC OUTLOOK
Derek Skala, Vice President of Credit, Risk, and Business Development
Welcome to 2025! In 2024, agricultural lending increased compared to 2023. They expect similar results for 2025 due to tighter operating margins and an increased demand for credit. Cost of inputs, reduced markets, labor, interest rates, insurance, and overall inflation are some of the expenses that can contribute to this. Although the cost of inputs has reduced, so have the crop prices, leaving producers looking at different ways to increase margins. Whether it's no-till/cover crop, looking into carbon credit programs, diversifying the operation to mitigate risk, or utilizing technology – there are still ways you can increase your margin in 2025. One likely positive outlook is that the Federal Funds rate has a target range of 3.75 – 4.00% in 2025. The most recent projections suggest constant unemployment rates and a decrease in inflation, which could be conditions for future rate declines into 2026. With the economic uncertainties in 2025, CFS is here to help. We can help to vet any possible carbon credit programs, find methods to diversify your operation, understand cover crops, or we can assist with financing options that could provide more attractive interest rates. If we've learned anything in the last few years, it's that the outlook is a probability, but who really knows what the future holds? Either way, CFS is here for you – thick or thin.
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