Find 'CAREERS' by hnj68713


          JUNE, 2007                       Find ‘CAREERS’
         Vol. 13, No. 2                    at
                                           ECIC has added a new tab                                                                    Community
                                           to the web page.           A
                                           “Careers” tab offers the
                                           opportunity to be a part of
                                           the ECIC team by applying

 Dedicated to Service ...
                                                                                                                               • Festival of Trails Days
                                           from the web page with
 Committed to Success ...
                                           basic information.      Upon

                                                                                                                                   La Porte City
                                           completion of the form, it
                                           will be kept on file. In the

                                                                                                                                   June 15 & 16
                                           event of position listed as
    Business Hours                         available, the application

                                                                                                                               • Sturgis Falls Days
  7:30 a.m. - 5:00 p.m.                    will go the the appropriate
                                           division for review.
  Monday thru Friday
 During the busy service seasons           Guest article:                                                                          Cedar Falls
                                                                                                                                   June 22-24
(both Spring and Fall), East                    Consequences of                               Cory Taylor
Central Iowa Cooperative will
                                            QUESTIONS NOT ASKED

                                                                                                                               • Farmers Days
also extend hours to accommo-
                                                  about Biofuels
date member service needs dur-
                                                     by John Baize                  Congratulations
                                               A common gripe of American vot-      to the ECIC
                                           ers is that their representatives in
ing the planting and harvest
                                           Congress and the Administration do
                                                                                                                                   July 12-14
                                           not listen to the views of the general
                                                                                    scholarship winner
                                           population. That may be true on
   These extended hours are

                                           some issues, but it is not when it
                                                                                                                               • Hudson Days
designed to meet patron need
                                           comes to issues where a vast major-
                                                                                       Cory Taylor, the son of Daryl
and may only affect specific divi-
                                           ity of the populace voices their com-
                                                                                    and Patty Taylor and the grand-
                                           plaint about one policy or event.
                                                                                                                                   July 20-21
sions and locations of the

                                           The best example was the relatively
                                                                                    son of Cecil and Marjane Taylor,
Cooperative. During the Fall sea-
                                           rapid action of the Congress and the
son, hours of operations will be                                                    all of Hudson, is the 2007 recipi-
                                           Bush Administration to do something
                                           about the high gasoline and energy
posted at each elevator location.                                                   ent of the East Central Iowa
                                           prices that occurred in the last few
                                                                                    Cooperative scholarship. Cory
 ECIC TELEPHONE DIRECTORY                  years. Fearful of a backlash at the
                                           polls, the government rammed
                                                                                    plans to continue his education
                                           through several initiatives aimed at
CEDAR FALLS               (319) 266-0775                                            in agriculture at Iowa State
                                           increasing energy supplies and low-
HUDSON                    (319) 988-3257                                                                                              Available at
                                           ering prices. The fact that none thus
Hudson TOLL FREE          (800) 400-3247                                                                                            Hudson Cardtrol®
                                           far have had much impact is imma-

                                                                                                  HOLIDAY CLOSINGS
                                           terial.     The Congress and the
Hudson AG CENTER          (319) 988-4511

                                           Administration showed that they
Ag Center TOLL FREE       (800) 859-0497

JESUP                     (319) 827-6226
                                                                                                           (All E.C.I.C. locations closed)
                                               The governmental action that has
                                                                                           • Independence Day, Wednesday, July 4th
Jesup TOLL FREE           (800) 859-8061
                                           gotten the most attention is the sub-
                                                                                              • Labor Day, Monday, September 3rd
Jesup AG CENTER           (319) 827-3531
Ag Center TOLL FREE       (866) 599-7666   sidization of biofuels. Faced with
LA PORTE CITY             (319) 342-3013      See CONSEQUENCES / page 5                           Safe and happy holiday celebrations to all!
La Porte City TOLL FREE   (800) 877-3810
WATERLOO                  (319) 235-6281
L.P. Plant    TOLL FREE   (866) 404-3242   ECIC supports local FFA chapter and students
John Babinat               La Porte City
Greg Becker                       Jesup
James Grady                    Waterloo
Tom Greiner                    Waterloo
William Hesse                Cedar Falls
Randy Lichty                   Waterloo
Dennis Rottinghaus         La Porte City
Jason Trumbauer                   Jesup
Gary Wilt                  La Porte City   Joanne Nicklaus presented the Nick Nicklaus             Dennis Maas presented Jessie Droppert with a
Mike Reiter                       Jesup    Scholarship to Renee Mumm at the 75th annual            donation to FFA, representing a percentage of feed
                                           FFA Parent and Member Banquet.                          purchased from ECIC during FFA week in February.
                             Message from your
                                                                                                    due-diligence done by July 1 to hold mem-
                                                                                                    ber information meetings in early July, and
                                                                                                    prior to the end of July Members Mutual Oil

                              General Manager
                                                                                                    Companies members must vote for
                                                                                                    approval. We will do our best to keep you
                                                                                                    informed of the progress and certainly
                                                                                                    encourage anyone to contact E.C.I.C. or
                                                                                                    Members Mutual management or Board of
                                                   Dennis Maas
                                                                                                       May was beef month and the feed and
   Another spring in Iowa; DIFFERENT! Ice          bilities is 4.2%. Your cooperative has a very    agronomy divisions teamed up and had a
storm and snow in April, which delayed corn        strong financial position.                       beef barbeque at the Hudson and Jesup
planting, then turns dry a couple of weeks in         When discussing equity and our financial      agronomy centers. We thank all of the
May and soybeans are planted in dry                position, we need to convey to our member-       patrons who participated in the barbeque
ground. Hopefully, the rest of the growing         ship our future plans about their equities. I    and hope you enjoyed the good food. We
season will be positive towards the crops.         have mentioned in the past that the Board of     appreciated the beef producers that partici-
We thank our patrons for the support and           Directors and management are passionate          pate in the production of beef.
cooperation they provided this spring. The         about the revolvement of equity. Expecting the      E.C.I.C. congratulates Cory Taylor on
opportunities to plant were certainly short-       coop to be profitable this year, the Board of    receiving the $500.00 scholarship for his
ened this spring compared to the last couple       Directors will be addressing the equity the      continuing education in the field of agricul-
of years. When this occurs, we can do              membership has invested in E.C.I.C. Part of      ture studies. Cory is the son of Daryl and
things too hastily and not always keep safe-       the process is the responsibility of the Board ofPatty Taylor and the grandson of Cecil and
ty as our priority. At the Coop, we are very       Directors to keep the membership current.        Marjane Taylor, all of Hudson. The coop
pleased to report there were no major inci-        Most recently letters have been sent out to      offers scholarships to graduating seniors
dents and hope that is the same on each            members addressing their classification, Class   who pursue their education in a related field
one of your farms. We thank all of the             “A” vs. Class “B” or if their memberships        of agriculture and whose parents or
employees for their efforts in safety, not only    should be cancelled, or if their membership      guardians are members of East Central
to their fellow employees but also to our cus-     should be classified as an estate. When the      Iowa Coop. We want to extend our congrat-
tomers.                                            membership lists of the coop is justifiably in   ulations to all of the graduating seniors from
   E.C.I.C’s eight months (September 1,            order, the Board of Directors will evaluate the  the schools in our trade territories. We wish
2006 thru April 30, 2007) financial results        different classes or categories of membership    them luck and success in their future
show improvement over the same time peri-          and develop a plan for revolvement of these      endeavors of choice.
od for the prior fiscal year. We understand        equities.                                           I personally want to congratulate our
that we have made these claims in previous            Our condo grain storage program has           entire feed team and especially those
years and when we get to our fiscal year           moved forward and the majority of the units      employees of the Jesup feed mill for the out-
end, the results are not as good as we             are sold and down payments are received.         standing feed mill evaluation they had once
expected. I want to assure our members             We do have a few units for sale as of this writ- again this year. The inspector rated our feed
that we have implemented different proce-          ing. If you are interested, please contact       mill as one of, if not the highest in the indus-
dures to help management and the Board of          Hudson or any of our location managers for       try. This is based on good feed mill manu-
Directors to feel good about the reports we        information. The hole has been dug for the       facturing practices. Our customers can feel
are getting. Some of the procedures we             foundation and currently concrete is being       confident that their feed is being manufac-
have adapted are:                                  poured. The 400,000 bushel bin has been          tured to the highest standard. Congratu-
   1. We had our auditors come in at mid-          delivered, so progress is going forward. A littlelations feed employees!
year and review our accounting to verify our       behind what we expected because of the high         On May 18th a mill right company started
accuracy. The auditors reported to the             river waters, but hopefully that problem is on our feed mill to install a new
Board of Directors a positive review.              We encourage you to visit the site at Cedar      receiving distributor at the top of the Jesup
   2. We have implemented an I.R.M.P.              Falls if interested, or we will keep you updated feed mill. The job was to be down over the
(Integrated Risk Management Program)               with       pictures    on     our     web     site
                                                                                                    weekend as to avoid as much interference
from our grain brokers to assist us in estab-                                 with the manufacturing of feed as possible.
lishing our grain margins.                            Speaking         of     our      web      site,
                                                                                                    Monday morning, May 21st, we had employ-
   3. We have instituted checks and bal- , we encourage you to visit       ees return to work to find a smoldering feed
ances in our accounting practices to make          it. We have made some changes to the web         mill. A bin of soy hulls caught on fire from the
sure of our accuracy.                              site based on input from our customers to        construction over the weekend. The Jesup
   Now, with that being said, I want to share      make it more user friendly. We have also         Fire department was called and responded
with you the numbers from our first eight          recently added a Careers page which will pro-    immediately and foamed the bin and smoth-
months of operation. Our local earnings,           vide information on employment opportunities     ered the fire. A big thank you goes out to the
which consists of revenue less expenses, is        available within the coop. We hope you use it    employees of the coop and the Jesup fire
a positive $744,000.00.           This is up       and if you have ideas to improve it, let us know.department for their expertise and equip-
$190,000.00 and over the previous fiscal              In April we sent to all of our members and    ment. I can’t say enough good about how
year. Our net earnings, which consist of           customers a letter addressing the possible       the Jesup Fire department responded.
local earnings and patronage from regional         consolidation of E.C.I.C.’s energy division and
and any extra ordinary income is                   Members Mutual Oil Company. We are cur-            I thank all of our customers for their sup-
$1,188,000.00. This is up over $244,000.00         rently still in that process. Both Boards of port of our products and services we pro-
compared to the previous year. E.C.I.C.’s          Directors are committed to this endeavor with vide. I wish each of you a great 4th of July
balance sheet is very strong with working          a possible consolidation date of September 1, and a safe summer.
capital at $2.5 million; debt to equity and lia-   2007. To meet this time line we must have our      REMEMBER OUR TROOPS!
                                                                                                          Future Fuels Become
       JESUP                                                 JESUP                                        More Environmentally Friendly
                                                           AG CENTER                                         Corn and soybeans are the current "go-
        Jeff Lee                                                                                          to" crops for producing ethanol and
                                                           Norm DeJong                                    biodiesel, respectively. But two other
                                                                                                          crops—switchgrass and hybrid poplar—
                                                                                                          could steal the show in the future when it
Hello from Jesup!                                       Hello from the Jesup Ag Center!                   comes to curbing greenhouse gases,
   As planting wraps up it appears this area has             At this point it appears that the crops      according to Agricultural Research Service
the promise for a good harvest in place for 2007.       have a good start on a successful season.         (ARS) and collaborating scientists.
Many of you are still busy with spraying and            Here at the Ag Center, we plan on doing
                                                                                                             In a study published in the April issue
making hay but hopefully the pace will soon             what we can to keep them in good condi-
                                                        tion. With fertility already taken care of, we    of Ecological Applications, ARS scientist
slacken and the opportunity for vacations or
more time with family and friends will be more          will be making an effort to control pests and     Paul Adler and colleagues compared the
available. As we conclude the spring season,            keep the crops healthy.                           net production of carbon dioxide and two
your agronomy center will eagerly assist you              Both the gray leaf spot and northern corn       other greenhouse gases associated with
with spraying or replacement nutrients for your         leaf blight fungi survive in corn residue left    producing biofuels from several different
hay ground or pastures.                                 on the soil surface from the previous grow-       bioenergy crops.
   On Friday May 18th and Saturday May 19th             ing season. The best defense against corn            In short, it takes energy to produce ener-
Bart Brothers construction company installed a          leaf diseases is genetic resistance. If a sus-    gy, notes Adler, who’s in the ARS Pasture
new 26 hole 10 inch Gerber distributor above            ceptible hybrid is planted in a reduced-          Systems and Watershed Management
our feed mill here at Jesup. This replaces a worn       tillage, continuous corn field and conditions
out distributor in 8 inch. This will allow us to go                                                       Research Unit, University Park, Pa. For
                                                        are favorable for disease development
to a bigger receiving leg at some time in the not                                                         example, operating a tractor to plow,
                                                        (extended periods of high relative humidity
to distant future. Bart Brothers did an excellent       and moderate to high temperatures), exten-        plant, fertilize, and harvest all require
job installing the distributor but when we              sive blighting of leaves may occur prior to       gasoline or diesel fuel. This, in turn, releas-
arrived at work on Monday morning we could              grain fill, leading to substantial yield reduc-   es carbon dioxide and other greenhouse
smell smoke. La Vern and Larry were the first to        tion. In this case, a fungicide may provide       gases tied to global climate change.
arrive and they noticed the smell. La Vern quick-       an economic return. Please review your               The good news? Bioenergy crops offset
ly went to the top of the mill and checked the          hybrid selections with us and evaluate their      their greenhouse-gas contributions in
bins and found one full of smoke so he called           disease tolerance. We can then evaluate the
911. Luckily the fire was contained in one bin                                                            three key ways: by removing carbon diox-
                                                        benefit of plant health products.                 ide from the air and storing it in crop roots
that we store soybean hulls in. The Jesup fire
                                                          ECIC Jesup location is providing a show         and soil as organic carbon; by producing
department responded very quickly. The fire
                                                        plot of diverse corn genetics at the Rick
department was able to smother the fire with a                                                            co-products like protein for animal feed,
                                                        Youngblut farm at the intersection of V62
liquid foam material and water. By using their                                                            which saves on energy to make feed by
heat detection gun and thermal imaging camera           and Independence Ave., on the north edge
                                                        of Jesup. Please take some time to observe        other means; and by displacement, where-
they were able to determine the fire was put out                                                          by replacing a fossil fuel with a bio-based
and we were able to unload the bin into the             the plot and please watch our web site this
                                                        summer for more information regarding a           one "recycles" rather than adds more car-
grain truck for disposal. I really appreciate the
quick thinking of La Vern and Larry along with          tour date. We hope to see you there.              bon dioxide to the atmosphere.
the Jesup fire department. This could have been           Also, this summer we would like to plan            Adler and his colleagues predicted a
catastrophic. All well that ends well.                  for fall soil testing and dry fertilizer appli-   40% reduction of greenhouse gas emis-
   We have a new face here at Jesup. Kym                cation. It’s a good time to go over past soil     sions if ethanol and biodiesel from corn-
Weltzin from rural La Porte City started work           testing and make sure those fields that need      soybean rotations were used instead of
for ECIC on May 29th. Kym comes to us from              testing this fall get on the list for sampling.
                                                                                                          gasoline and diesel. This reduction was
Waterloo Industries where she was employed              If we have current tests, we can plan the fall
                                                        application and get the fertilizer on during      about two times greater than using
as a warranty specialist. Kym also carries a Ag
                                                        good soil and weather conditions rather           ethanol produced from corn grain alone.
Business degree from Hawkeye Community
Collage. Kym and her husband Jamie farm                 than being forced into applications made          However, the team predicted that using
north of La Porte City. Kym and Jamie also have         under less than ideal conditions.                 switchgrass and hybrid poplar would pro-
three children to keep them busy CJ age 5                 Enjoy the summer and please, always be          duce nearly a three-fold greater reduction
Breanna age 4 and Todd age 2. Kym is replacing          careful.                                          in greenhouse gas emissions compared to
Crystal Roscovius. Crystal accepted a new posi-                                                           corn-soybean rotations.
tion with Spahn and Rose lumber company                                                                      This research shows that biofuels do

                                                           DUST CONTROL
here in Jesup. We would like to wish Crystal the                                                          indeed have potential to remove green-
best of luck in her new position.
                                                                                                          house gases from the atmosphere while
   Wedding bells rang for Chad Ciesielski and
Fonda Bartels on June 2, 2007 we would like to                      is available                          helping reduce U.S. reliance on foreign oil,
                                                                                                          according to Adler.
wish them many years of happiness.
     REMINDER - HOLIDAY CLOSING                                     through the
   On the grain side if you still have old crop set-             WATERLOO                                 Also on the website:
                                                                                                          • Iowa Renewable Fuels Assn. newsletter
ting in the bins we do have 30 day open storage
for local delivery. I would advise that you take                                                          • Letter to ECIC members on Energy Consolidation

advantage of the rallies and get the balance of                                                           • Video discussing benefits of Biodiesel and
old crop sold in the near future. We have had a
lot of interest in grain sales for fall deliveries in
                                                                                                                       benefits of using quality products
2007 & 2008. If you have interest give us a call                                                          • Valuable links to community web sites
and we would be happy to discuss it. Thanks                                                               • Exceptional results for ECIC annual mill audit
again for your continued support and best
wishes for a great summer.                                                                                ••• much, much more!
                  Waterloo                                                                        Cedar Falls
                Energy Center                                                                       Rand E. Renner

                     By Terry Grant

                                                                                                    Hello from Cedar Falls!
   High gasoline prices will hamper sum-                                                            It has been a busy few months with the
mer vacations, as prices race past the                                                           start of construction of the new BIN! As I
$3.00 mark. Troubles in the Middle East                                                          write, the concrete is being poured.
with Iran and Nigeria have driven the                                                            Everyone come and see the progress. You
fuel prices since the beginning of spring.                                                       can see pictures on the website or stop in
Low inventories and refinery problems                                                            and look at the pictures on the computer.
motivate speculators to chase the mar-
                                               Rand E. Renner
                                                                                                    Most crops are planted and should be
kets up during our high usage months.                                                            peeking through the ground. The 2+ inch
Technically our gas prices are mostly
                                               participates in
                                                                                                 rain we had last week should help.
speculation. If we were standing in line                                                            Keep an eye on the corn and beans left
for 10 gallons of fuel, I could see a reason
                                               Tractor Cruise USA
                                                                                                 in your bins at home. The temperature is
for higher prices.                                Manager of the Cedar Falls location, Rand      getting warmer and BUGS may appear.
   On the other hand, we may be our                                                              Bring it in and we can keep an eye on it.
worst enemy. We have always had                E. Renner, was on one of the 100 tractors that
                                               went on the KWWL Tractor Cruise USA on               It is lawn and garden fertilizer time.
enough fuel to drive wherever we need-                                                           Cedar Falls has plenty on hand to green
ed to go. As you drive down the road,          Thursday, May 31st.
                                                                                                 up the grass and to make your garden
many of the vehicles we see have one              The cruise started out at Waterloo’s Five      grow.
passenger. True, in the Midwest we do          Sullivan Brothers Convention Center, and             Goldfinches, cardinals, etc., are eating
not have the luxury of mass transit in our                                                       up a storm. We have plenty of mixed bird
                                               headed down through Hudson on the first
rural communities. The high prices of gas                                                        seed, suet, and nectar to feed our flying
will soon make us all think, do we really      day. They ended up at Hansen’s Farm Fresh
                                               Dairy for a break and a tour., then continued     friends.
need to run to the store for just one item,                                                         Condo storage is still available.
or should we make one trip and pick up         on to La Porte City for lunch and a tour of the   Contact Rand E. if you are interested.
several things. Over time, we will need to     FFA Historical and Ag Museum.                        Have a safe and wonderful summer!
conserve and push our automakers into             On Friday the tractor cruise went to the          Happy 4th of July!
better fuel economy vehicles. The SUV                                                               Rand E., Gary, Glynna,
                                               John Deere Tractor Assembly and Engine
may become a vehicle of the past, or                                                                Marge and Lawrence
down sized if prices remain. I do not          Works and back to the Convention Center in
                                               heavy rains that day. Saturday they went out              SUPPORT OUR TROOPS!!!
think we will see lower prices in the near
future. The world economy is growing,          to Antique Acres and then back to the
with a lot more competitors for fuels          Convention Center.
other than the United States. Renewable           Rand E. was among all the riders sporting
fuels are tops on our governments list of
things to promote. Development of Bio          a wide smile and giving a friendly wave to
Diesels and ethanol fuels will be forth        the many who enjoyed from the sidelines.
coming. It may take several years but
changes will be made in our dependence
on foreign oils.
   Summer is here to stay and following
the seasonal changes we need to prepare
for the winter with propane contracts. If
you are ready to contract your winter
                                                                                                        Don’t forget to contact
needs, give us a call.
   Budget accounts will begin in June. If
                                                                                                          the Energy Division

you would like to take advantage of
                                                                                                       for your summer fill of LP
monthly payments for your yearly
                                                                                                           if you are not on
propane needs, call Lorinda and she will
                                                                                                               Keep Full.
help you set up your account.
   Summer is a great time of the year,
even with high gas prices. Problem is,                                                               ECIC on the web:
with summer our gravel roads become
very dusty. If you have not called for an                                                  
application of dust control, some coun-
ties are still taking applications.
   The most exciting opportunity in our
energy business is our talks with
Members Mutual on a merger. Time will
tell if we will be able to combine our two
cooperatives to make a great business
venture for both companies.
   If you get a chance, check our web site
for information on renewable fuels and
safety messages.
                                                                                                                            gents, and synthetic rubber from tallow also have seen their
                                                                                                                            raw material prices rise. The recent decision by the IRS to
                                                     Consequences                  continued from page 1
     Agronomy                                        the twin needs of lessening America ’s reliance on imported oil        allow a $1/gallon payment to petroleum companies making
                                                     from the unstable Middle East and increasing energy supplies,          “green diesel” in their refineries by thermal depolymerization
      Division                                       expanding American output of ethanol and biodiesel was like            promises to drive tallow prices even higher. This is great
                                                     manna from heaven for politicians. Biofuels promised more              news for the cattle sector which has been hit by higher corn
                                                     renewable home-grown energy and it also had the side benefits          prices. However, it is a real threat to the survival of the U.S.
                                                                                                                            soap and detergent supply sector because it has been their
        Gene Mitchell
                                                     of supposedly improving the environment and creating higher
                                                     incomes for American farmers. With such a win-win solution, the        access to lower cost tallow which has allowed it to compete
                                                     Congress pushed through policies aimed at expanding biofuel            with the same products made mostly in Southeast Asia from
               Things to do                          production without taking the time to seriously explore the ramifi-    palm stearin.
                                                     cations to the overall economy from doing so.                              Once the ripple effects of the government incentives for
   During the month of June scout for corn
Scouting Calendar
                                                          A cursory look at biofuels certainly makes them look very pos-    biofuels production work their way through the economy it will
rootworm larvae, corn borer, army worm and           itive. All biofuels are is non-petroleum energy converted into a       begin to be seen in consumer prices. The prices of meat,
stalk borer in corn. Scout for aphids, bean leaf     fuel. What could be better? However, the renewable energy              particularly chicken and pork, will have to rise significantly to
                                                                                                                            offset the higher feed energy costs. Retail vegoil prices as
beetle and grasshoppers in soybeans.
                                                     sources that thus far are being converted into fuel have been
                                                     used up to now for other purposes. Corn has been used for food         well as foods containing or cooked with vegoils will have to
                                                     and animal feed and vegetable oils and animal fats are being           rise to reflect higher raw material prices. So will the price of
   Please return the products that you have left                                                                            soap and detergents and a wide array of other products made
                                                     used for food, feed, and industrial products. They have not used
over as soon as possible. That way we can be         for biofuel production except in very small amounts because it         with oils and fats.
                                                                                                                                It does not stop there. By subsidizing the conversion of
sure that we meet the deadlines that our sup-
                                                     was uneconomical to do so even with petroleum at $70/barrel.
                                                          Once the government subsidized and mandated the inclusion         starch into ethanol the government drove up the profitability
pliers place on us and we can all get the prop-      of ethanol as an oxygenate in gasoline and provided a $1/gallon        of corn production more than other crops in the U.S. That
er credit.                                           subsidy for virgin vegetable oils and animal fats (50¢/gallon for      has translated this year into a 12 million acre increase in
                                                     recycled and inedible fats and oils) it all of a sudden became prof-   corn plantings at the expense mainly of soybean, cotton and
                                                                                                                            alfalfa/hay plantings. This will lead relatively soon to
   This season has been especially trying for
                                                     itable to divert the corn and fats/oils into energy production.
Spray Post chemicals early
                                                     Predictably, the additional demand created by the governmental         reduced supplies and higher prices for those crops which
those of us in production agriculture. It started    incentives translated into higher prices for corn and oils/fats.       will be felt down the road in higher vegoil, clothing and hay
off late and when it got underway, all of the        Corn prices have about doubled and fats and oil prices have            prices. This will likely lead to incentives to increase plant-
activities seemed to be happening at the same        risen by almost half. Of course that is what the corn, oilseed,        ings of those crops in 2008 or thereafter. The crops likely
                                                                                                                            to lose out when this occurs are the crops not benefiting as
time. Corn acreage increased 10+ percent
                                                     and animal fat producers wanted to happen as they pressed for
                                                     the biofuel incentives.                                                much from biofuel subsidies, notably wheat, rice, and
adding pressure to dry fertilizer, NH3, UAN               What most policymakers failed to adequately recognize is          maybe hay. This would mean a further contraction of the
and spraying operations. Seed production was         those who have been using the non-petroleum energy for the             U.S. wheat and rice sectors to the betterment of producers
geared to “normal” acreage, so we had to wait        production of food, feed, and industrial products were the first       in other countries. The wheat sector already is seeking
                                                                                                                            higher income supports to help prevent a decline in har-
on a lot of seed to be shipped from South
                                                     ones to be hit by rising prices. All of a sudden they faced gov-
                                                     ernment-backed competitors who could afford to pay more for            vested area.
America to take care of the increased acres.         their energy sources because of government assistance. Food,               There will also be environmental consequences from the
Rain kept us out of the fields a couple of times     feed, and animal producers companies were faced with paying            governmental biofuel incentives. First, the sharp increase
and it seems like the wind never stops blowing.      more for their corn and vegoils to keep the supplies they needed       in Midwestern corn plantings at the expense of soybeans
                                                                                                                            has already resulted in a major increase in the amount of
Spraying has been difficult because of the rain
                                                     from being diverted into biofuel production. Rising corn and veg-
                                                     oil prices also led to increased prices for other feed energy          synthetic nitrogen fertilizers used there. Corn requires a lot
and the wind. Many growers had planned a             sources like sorghum, wheat and tallow.                                of nitrogen fertilization, but soybeans require very little
preemerge herbicide application ahead of corn             The companies which make the ingredients for soap, deter-         because as a legume they fix nitrogen from the air. The
and soybeans, but opted to get the crops plant-
                                                                                                                            government’s efforts to reduce the flow of nitrates into the
                                                                                                                            Mississippi River system have probably been more than off-
ed instead of waiting for a sprayer, especially as   yield loss for 5 inch weeds? 10 inch weeds?                            set in one year by higher corn plantings. Second, the over
we got closer to the optimum planting date.          You can see that it doesn’t pay to skimp and                           feeding of high protein distillers grain in cattle feeds as an
   If you are one of those who has the crop          that even when you try to save, it costs.                              energy source rather than lower protein corn is likely to
planted and are wondering what the best
                                                                                                                            result in greater nitrate content in their manure and in ground
approach to weed control is now, keep these             Fertilizer has been behaving a lot like grain
                                                     Fall fertilizer forecast
                                                                                                                                It also is important to note the U.S. subsidization of bio-
things in mind: 1) use the right rate of herbi-      these days with prices fluctuating wildly. The                         fuels is not unique. Europe has a huge subsidized biodiesel
cide for the weeds present in the field.             increased corn acreage caught fertilizer man-                          sector and is ramping up its ethanol sector. The govern-
Generally the broadleaf weeds will grow              ufacturers by surprise almost as much as the
                                                                                                                            ments of Malaysia, Indonesia, Brazil, Argentina, China and
                                                                                                                            other countries are also encouraging biodiesel with subsi-
faster and require higher rates than will grass-     seed producers. Strong foreign demand by                               dies and blending mandates. Brazil’s sugar-based ethanol
es. The taller weeds get, the harder they are to     India and China also played a part in a short                          sector is already large and is destined to grow rapidly in the
kill, even at higher rates. 2) One trip probably     supply / strong demand. These factors all                              future. No rainforest anywhere in the tropics is going to be
won’t do it. When you wait too long, the             contributed to a strong price run-up from fall
                                                                                                                            safe because of the incentives to grow oil palm and sugar to
                                                                                                                            produce biofuels.
broadleaf weeds will be very large and will          to spring. Nitrogen and phosphate prices                                   Truly, the ones who stand to lose the most from the glob-
require extremely high rates. It is not unusual      should ease from spring levels for fall but will                       al biofuel frenzy will be the poor in Asia, Africa, Latin America
to get caught with large giant ragweed and           likely be priced $100 per ton higher than last                         and elsewhere who will face higher food prices. Consumers
need 44 ounces of Roundup. If weather condi-         fall ($15 - $30 per acre). Potash will also be
                                                                                                                            in developed countries can afford higher food bills by cutting
                                                                                                                            back on non-necessities. However, the world’s 2 to 3 billion
tions aren’t perfect, the tops will die back, but    priced higher this fall than last. This projec-                        poor people will simply have to eat less or turn to poorer qual-
new buds will form and in a few weeks you            tion assumes that there won’t be any signifi-                          ity diets. Unfortunately for them, energy rich crops like corn,
have a bushier plant than you had before. You        cant damage to the gulf coast by hurricanes                            sorghum, and rice plus vegoil are the basics of their diet and
won’t be able to stand how the field looks, so       this summer. If there is, all bets are off!
                                                                                                                            the items likely to be most impacted by biofuels. Will the gov-
                                                                                                                            ernments and humanitarian groups of the world donate the
you will make another application of                  What can you do limit the effect of higher fer-                       massive amounts of money necessary to allow the world’s
Roundup at 44 ounces and hope that you               tilizer prices? 1) Consider grid sampling and                          poor to effectively compete against biofuel producers for the
won’t have to come back with a third trip.           fertilize accordingly using VRT technology.
                                                                                                                            foods they need? Don’t count on it.
Two trips at 44 ounces will cost around $24.00
                                                                                                                                This brings me back to the beginning. When the U.S.
                                                     That way you will fertilize only the areas of                          Government hastily created biofuel subsidies it was
per acre. If you were timelier and used 22           the field that will likely yield you a good                            responding to the cry of the populace for lower energy
ounces twice, you could save $12.00 per acre.        return on that investment. 2) Order early. The                         prices. The issues raised above were clearly not thorough-
We could apply it for you and you could still        market is getting vicious in punishing poor
                                                                                                                            ly explored and analyzed. Now the consequences of the
put money in your pocket. But here’s the real
                                                                                                                            biofuel incentives are beginning to be felt and their intensity
                                                     planners. This spring is evidence of that. Talk                        will rise over time. As more and more concerns arise and
kicker: for every inch of weed growth you lose       to your salesman and put a plan together                               there is a cry from the population here and abroad to
7/10ths bushel of beans and 4.6 bushels of           early for fall. Then let’s execute it. There will                      address the ramifications from biofuels will the government
corn due to increased competition! That’s            be more days available for optimum results,
                                                                                                                            ignore them? Most likely some of the greatest proponents
another $5.20 per inch for beans and $14.95
                                                                                                                            of biofuels will claim they were not told the truth about the
                                                     the workload will be lower in the spring and                           ramifications of biofuels and claim they were misled. That
per inch for corn at today’s prices. How much        your cost is likely to be lower as well.                               is when biofuels will face their greatest challenge.
                                               did not manufacture any feed on Friday the        bin and thoroughly cleaning of the bin, the
                                               18th so the millwrights could get started         mill resumed normal operations by early
                                               that day as well. I’d like to thank the mill      afternoon. A big THANK YOU to Larry and
                                               staff and our customers for working togeth-       LaVern for being alert and responding in a
                                               er to accomplish this task. For the most part     very correct and professional manner. As I
                                               all went well with the replacement project        stated earlier had it not been for their
                                               other than a real fire scare that was associat-   actions we could have had a major disaster
                                               ed with the project. The old distributor had      occur. Also a big thanks to the Jesup Fire
     Dennis Francik

                                               8 inch spouting to our bulk bins and we           Department for all their help.
                                               elected to purchase a new distributor with            If you’ve checked our web page recently
   Memorial Day has just past by. All the      10 inch spouting so we could increase the         you will have noticed that the mill was
area schools will soon be out and summer       speed in which we can receive ingredients         recently audited by the Land O Lakes Feed
will be in full swing. It’s been a busy        when we upgrade the receiving leg in the          Quality Assurance staff. Again this year our
spring season here at the cooperative,         near future. During the process of cutting        mill staff received outstanding marks for
with the spring being wetter and cooler        larger holes in the mill bin roofs to accom-      the manufacturing of your feed products. In
than normal several of our producers that      modate the larger spouts, some hot metal          order to maintain our Level One manufac-
had new building projects planned were         was dropped into a bin containing soy hulls.      turing ability the mill must score a mini-
getting very nervous about starting and        The millwrights poured water in the bin and       mum of 90 out of 100 points on this audit.
completion dates being met. For the most       notified our staff to keep a watchful eye on      This audit covers all facets of manufactur-
part lately these projects are moving for-     the mill and that bin specifically the balance    ing, from ordering and receiving proper
ward at a fast pace, it’s amazing how fast     of the week end. When our staff checked the       ingredients to the manufacturing and deliv-
the new construction can proceed if the        mill late Saturday and Sunday all was well.       ery processes as well as record keeping.
weather stays dry. Check out our web           However, when LaVern Liebsch and Larry            Again this year we received over 98 and on
page, I’ll soon have pictures of several       Pullin came to work early Monday morning          the CNC ( critical non-conformance ) points
new building projects that are being con-      they smelled smoke. Thanks to their quick         we scored over 92. As mentioned on the
structed in our trade area on the web site     and correct actions the fire department was       web page article, the mill inspector was
and I’ll try to keep adding pictures as the    notified and after a lot of nervous tension       very surprised that our mill scored that
construction progresses.                       the heat was soon contained within that spe-      high as he had not had any mills score any
    I mentioned in the last newsletter that    cific bin by the Jesup fire department and a      where near the 90 point mark to date on the
we were to receive the new feed trailer in     greater disaster was avoided. After remov-        CNC scores. With the many new require-
April. We did in fact pick up the new trail-   ing the contaminated soy hulls from the mill      ments that have come into place since the
er at CEI manufacturing in Cedar Rapids                                                          “9-11” events, our mill staff has done an
on April 23rd. As soon as we hooked up to                                                        outstanding job of keeping current with all
the trailer Joe pulled it to Nagle Sign                                                          the new regulations and requirements. You
Company in Waterloo where we had the                                                             should rest assured that we are doing all we
trailer lettered. By mid week that week it                                                       can to assure you that the feed products you
was being fully utilized at the mill. The                                                        receive are manufactured, and delivered in
office staff at Jesup has been encouraging                                                       the proper manner. And as feed quality con-
our accounts that can utilize the 24 ton                                                         cerns become more of an issue we are ahead
loads to order in that quantity and we                                                           of the curve in terms of proper manufactur-
have had no trouble keeping both of the                                                          ing, traceability and accountability.
24 ton delivery units busy. By delivering                                                           Just a quick reminder for most of you, as
larger loads we can be more efficient with                                                       we move into the summer months and get
our delivery units and try to contain                                                            away from the hectic pace of the planting
delivery costs as much as possible.                                                              season, we do require a 24 hour notice for
   We also just recently had the new ingre-                                                      all feed deliveries. The staff at Jesup has
dient receiving distributor replaced. This                                                       been very accommodating during the busy
was the last major capital additions proj-                                                       spring season and we have waived the
                                               Jim Clayton and Shane Hepler are shown
ect that the Board approved for the feed                                                         same day order fee for several producers.
                                               with the LOL Dedication to Quality Award
division. Bart Brothers Construction                                                             With the large volumes of feed the mill is
                                               and the LOL Dedication to Quality Award
Company replaced the distributor over                                                            manufacturing we simply need the 24 hour
the week end of May 19th and 20th. We
                                               for 5 consecutive years. Congratulations

                                                                                                 notice to keep the mill operations running
                                               on a job well done.
                                                                                                 as efficiently as possible. We do not want to
                                                                                                 charge the same day order fee, but we will
                                                                                                 again be instituting this procedure if the
                                                                                                 same day orders keep coming. Hopefully as
                                                                                                 the planting and spraying season winds
                                                                                                 down you can all get back to your normal
                                                                                                 routines and this issue will be a “non-
                                                                                                    Thank you to all of you for your contin-
                                                                                                 ued patronage and support, from the feed
                                                                                                 division we hope you have a GREAT SUM-
                                                                                                 MER !

                                                                                                                    • Bird houses
                                                                                                                    and supplies
                                                                                                                    • Cedar Falls
     Joe Schimtz with the new 2005 Sterling truck and 40 ft. CEI Pacer trailer
                                                                                                                               La Porte
        Grain                                               Controller                                                           City
       Brad Stewart                                              Don Mullen                                                       Keith

   Producers are in the final stages of planting with       East Central Iowa has a new program for our customers           With spring behind us and the crops in the
a minimal amount of seed corn acres and a moder-        and owners to use! You can now arrange to have your              ground, it’s time to focus on cleaning the grain
ate amount of bean acres left to go. Locally we         grain settlement sent by ACH (Automated Cash                     bins. With the weather warming up, we will
have already received a few timely showers to           Handling) directly to your checking or savings account.          start seeing some weevil activity. Also we
help the new crop get going. While producers have       We are offering this program to all members as long as           have seen some damage in higher moisture
been occupied the markets have rallied back to          they are current with their payments on all the charge           corn already.
respectable levels mainly due to uncertainty of         accounts that they may have with East Central Iowa                  As you have probablyy noticed, the market
weather conditions. This situation should continue      Cooperative.                                                     is having a hard time finding a direction. If
until traders become more comfortable with what             The program will work in this manner. First, in order to     you have a price in mind, let me know, and we
type of crop the will actually see come harvest.        set up your account to be able to send you the money by          can watch it for y ou.
This usually happens around mid to late July. Plan      ACH we need the following items                                     We are ready to start the second bunker, so
to market any bushels of new crop corn you must             •A VOIDED check; this gives us the routing and               I am hoping to open price later up on corn
sell starting at $3.50 and above. Old crop corn is      account numbers that allows us to send the money to your         again soon. We are accepting soybeans on
currently near $3.50, but I suspect we will see bet-    banking institution and to your account.                         price later now.
ter prices soon if the Eastern corn belt stays dry.         • We also are required to have either a Social Security         It is the time of the year for haymaking.
Soybeans continue to be a mystery at this point.        Number or a FEIN Number (Federal Identification                  Your Coop has a good supply of the 9000 and
Trade seems more concerned about next year’s            Number); this is a 9-digit number (54-00096800) that works       16000 feet Sisal Holland twine and 30000 feet
supply/demand ratio than this year’s production         the same as SS #. This is a requirement of the federal bank-     of 140 pound tensile fybrom plastic twine.
and carryout numbers. In my opinion beans don’t         ing system; they will not accept a wire or ach for transfer         Stop in and see Larry for all your summer
have a lot of upside potential at this time. Recent     unless one of those numbers is present.                          fencing needs. He has the Centaur Hi Tensil
rallies have led to increased farmer sales, and             Once we have the information I will set it up on in our      poly fencing. It is designed with animal safe-
wider basis levels. I have scheduled a producer         accounting system and send a test. The test only checks to       ty in mind. We also have several other types
meeting for June 28th in Washburn at the Izaak          see that all the numbers are correct and tell me that it is      of fencing supplies. We have taken on the
Walton building. The meeting will start at 10:00,       going to the proper bank and account. If your account is         APACHE line of calf creep feeders also. Stop
and lunch will be served at noon. Troy Lust from        current, and you request a settlement by ACH, you will           in and take a look at them. The APACHE line
FC Stone will be giving our grain outlook. We will      receive in the mail a copy of the settlement, and a check        has always been rated number one in the
also have a guest speaker on ethanol production.        notice, from the location that is doing the settlement.          industry.
Please plan to attend if you can. Thanks for your       Settlements that are done prior to 1:30 p.m. will be sent by        The Pump 24 has been having trouble with
business…                                               ACH the same day, and depending upon how your bank               the gasohol, pump 4 mainly. We are trying to
                                                        handles the ACH, it might be in your account the next day.       get the problem fixed. We apologize for any
                                                        However, in most cases it will be in your account the fol-       inconvenience you have experienced.
                                                        lowing day. I would encourage you to call your bank and             Please have a safe and enjoyable summer,
                                                        make sure it did arrive, at least with the first check or two.   and remember the Festival of Trails on June 14
   Beginning July 1, 2007
                                                            As most of you know, you can access all of your infor-       and 16.
                                                        mation over a secure connection, over the internet. Many
   Custom weighing prices
                                                        of our customers and members are taking advantage of
                                                        this program to monitor their grain deliveries or their
  will increase from $5 to $8
                                                        account. Because it is over a secure connection and only
                                                        you have the pass word, no one else has access to your per-
        (tax included).
                                                        sonal information. This does allow you to see every day in
                                                        harvest how much grain has been applied to your account.
   Please keep in mind the
  scale has a load capacity                             You can look to see what fertilizer, fuel, feed or anything
                                                        else has been charged to your account. If you are not cur-
     of 100,000 lbs. and a                              rently using this tool in your, business I would encourage
                                                        you to take advantage of this program.
                                                            We have a number of customers who no longer even
     speed limit of 3 mph.
                                                        have to send us a check to pay their account. They have

                                                                                                                            FALL PROPANE
                                                        asked East Central Iowa Cooperative to ACH their
          The mandates are
                                                        account for the amount that is due. With the cost of checks,
                                                        stamps and time, this is again something we can offer to
     state regulated for individual
                                                        you to make it easier to patronize your cooperative. On             CONTRACTING
   scales and require posted signs.
                                                        feed and fertilizer accounts we do send not only a copy of
                                                        the credit that is issued for the ach, but we also give you
                                                        copies of the tickets we are pulling the money for. If you
                                                        have an interest in this program, let me know and I will set
                                                        it up for you.                                                               Waterloo
                                                            In closing, the changes in your cooperative over the last
                                                        few years are starting to show the rewards of change. I
                                                        know that only one small group of people like change,                        Energy
                                                        enjoy the change when it is happening, and are real happy
                                                        when the change is completed, but change does bring new                       Center
Trivia question: How many steps are there               ideas, fresh outlooks and is the way that businesses are
                                                        renewed, re-invigorated and improved.
at the Capitol building in Washington DC?                   Your Cooperative has a great set of employees, and
                                                        those of us who have joined the company in the last few
                                                        years are looking forward to a great and growing future for
                                                        East Central Iowa Cooperative. As a challenge to you if
 Be the first to call your local coop
                                                        you find your account number in the newsletter, let me
      with the correct answer.
 Receive a prize, and watch the next                    know and we have a $25 gift certificate for you.
                                                            Thank you for your business and patronage.
     newsletter for the winner!
                                                                                                STANDARD MAIL
                                                                                                 U.S. POSTAGE

                                                                                                 Permit No. 10
                                                                                                Hudson, IA 50643

In this issue:
Careers now online
Congratulations CoryyTaylor
“Consequences of Questions Not Asked . . . “ John Baize
News and Notes
Reports from your Managers

                 ECIC Locations:
                                                                                       For all your
                                                              Today’s Markets
                       • Hudson
                 602 Washington Street
                      PO Box 300
                   Hudson IA 50643                                      Corn   Beans

                        • Jesup
                  661 Douglas Street                      Hudson        3.70   7.27

                    Jesup IA 50648                        Jesup         3.73   7.27

                     • La Porte City                      La Porte      3.73   7.27
                    106 Cedar Street                      Cedar Falls   3.70   7.27
                 La Porte City, IA 50651

                     • Cedar Falls                        Month Ago

                   212 Lincoln Street
                  Cedar Falls IA 50613                    Hudson        3.24   6.92
                                                          Jesup         3.24   6.92
                 • Waterloo - Energy
                 1467 West Airline Hwy.                   La Porte      3.29   6.92
                   Waterloo IA 50703                      Cedar Falls   3.25   6.92

                 Dedicated to Service ... Committed to Success

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