Newsletter for December 2008

2008 will most definitely go down in the history books as the year of changes. Everywhere you look change has happened, with new leadership for our country, financial markets collapsing, industry looking for bail outs, the ethanol industry in turmoil, oil, wheat, corn, soybeans and other commodities reaching all time record highs and prices going back down as fast as they went up. Record high land and input costs. We learned that influences outside of the market place we normally deal in, have been able to create daily market movements that were not based on supply & demand as we have been accustomed to. This created greater fluctuation in prices and a constant trend of limit movements in grain almost on a daily basis. We also learned how to stretch our credit limits to the max and then ask for more.

One question that I get asked a lot is why do we hedge our grain in an upward moving market? The answer to that is very simple, it is good business. We have a grain policy that does not allow the use of speculation on Corn or Soybeans our major crops, this requires us to hedge the futures as we purchase grain from customers. Over the past year the cost of hedging and holding hedge positions has cost a small fortune in interest, but the assets of the coop were protected. Other companies had elected not to hedge and were making huge profits as the market went up, but when it reversed and came back down they lost more than they had made earlier. This has forced some in to Bankruptcy as you have read in the papers.

Looking back a year ago corn was $3.91 in the elevator and soybeans were $9.84 in mid December. Today we are looking at prices of Dec 9^th of $2.93 for corn and $7.14 for soybeans. With July hitting quotes of over $7.00 on corn and $15.60 on soybeans, many felt that we were never going back to these lower values. So what can we learn from all of this? I believe the first thing is to never say it will never happen again or to me. Next is to position ourselves to reduce risk. How can we do that? It is by taking the best information that we can get at any given time and determine if we can reduce our risk or exposure to the outside influences that we can’t control. For example we need to know better than ever before what it cost to raise last year’s crop and what we have in it per bushel. This will help determine what minimum price is needed to market at. We also need to project the cost of raising the next crop and converting it into a per bushel value, again knowing this will help to watch for opportunities to make forward sales that will insure enough income to cover costs. Like everyone else my crystal ball is hazy, I do know that we need an increase in exports and industrial usage to increase grain values. 2009 may be a year that offers some opportunity by late winter to cover costs by forward contracting and then using options to participate in the market should it have a midsummer rally. In other words, if the opportunity arises to cover costs and to make a profit, take it.

As you already know on September 1 we formed an agronomy partnership with Western Consolidated Cooperative with our Lismore agronomy plant and since then our partnership has added a second fertilizer plant in Fulda. The Agronomy Center LLC our partnership, at the end of our first season together, results have exceeded our expectations, despite the problems we have had with weather and a short fall season. We will be reviewing the Agronomy Center’s capital needs shortly to determine the best ways to provide the services that you need.

Overall we have had a profitable year, thanks to the support of you our members and the hard work and dedication of many employees. As with any business we have some areas of concern and the Board of Directors and management will continue to review and find solutions for those concerns. We look forward to seeing you at the annual meeting on January 7, 2009.

HAPPY HOLIDAYS,

Russ

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THE ANNUAL MEETING OF THE WILMONT-ADRIAN COOPERATIVE WILL BE HELD ON WEDNESDAY, JANUARY 7^TH, 2009 AT 6:30 P.M AT THE WILMONT VFW IN WILMONT, MN.

THERE WILL BE A BUSINESS MEETING AND THE ELECTION OF 3 DIRECTORS.

WE WILL HAVE A DRAWING FOR DOOR PRIZES AND A GIFT FOR ALL MEMBERS ATTENDING.

LUNCH WILL BE SERVED FOLLOWING THE MEETING.

ROB NEWMAN, SECRETARY

WILMONT-ADRIAN COOP

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GRAIN STORAGE LEASE PROGRAM

We are offering a new program to our customers in all locations starting February 1, 2009. This program is the lease of storage space for the period of 5 years; it can be used for any crop that we handle and allows you the ability to use space all year for one fixed fee of 18 cents per bushel per year. This allows you the ability to bring in grain for future contracts months in advance, and be able to get a warehouse receipt. You can also use the space multiple times per year. Stop in, or call Russ or any branch manager for more details.

GREETINGS FROM ADRIAN

Harvest went pretty good. Had some days during corn harvest where I couldn’t take corn because we were full, but I want to thank everyone for being understanding and patient until room was available.

As of now I have room for beans. Corn space is still very tight; I do not have room for any corn right now. So no early delivery on contracted corn, please call before heading to town with a load of corn. I would hate to have sent you back home with it.

Do not be afraid to let your fans run for another month or so for a good freeze. We have a 5 ft. probe anyone can use to check their grain.

EVERYONE ENJOY YOUR CHRISTMAS

AND HAVE A SAFE NEW YEAR

John

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Christmas is almost here – seems like we had just gotten our garden plants in and now it is time for Christmas Trees!

We had a busy fall with Bridal Showers, hunting license and getting ready for Christmas. We did get fresh cut Christmas trees and garland in, and are almost sold out!!

Thanks to Denice C. for being our pick up lady, and running for appliances, trees, or whatever we ask her to do for us. Also thanks to John, Gene Owens and Mark Ruesch for their help. John almost runs when I call and ask if he is busy, or if he would like to come up and help shake out Christmas trees.

Joni Carlberg, joined us in June, and does a wonderful job with arrangements for all occasions. Stop in and check them out.

Don’t forget – if you ever have a screw loose or a loose screw – we have a large selection of nuts, bolts etc. Also we are able to solve most of your plumbing, electrical and painting needs. We also have a good supply of bird food and pet supplies.

We know you didn’t think we could possibly have all these things here, so if you haven’t stopped recently – stop in and check us out!

We look forward to seeing you at the open house.

HAPPY HOLIDAYS FROM ADRIAN HARDWARE

Jeri, Norma, Joni, & Chelsey

SEASONS GREETINGS FROM THE FEED DEPT!

Well it has been quite a volatile time this past year for all of our producers. The sad news is that I don’t think we are out of the woods yet. Consumer spending is going to play a big part in the market. Will people resort to buying cheaper cuts of meat because of the economic situation? We can’t control Wall Street, but we can do little things to control expenses. Check your feeders and waterers for proper adjustments to prevent feed losses. One good thing is that because of the dollar, export sales have been good, finally some good news!!

We would like to welcome Jeannie Perry to our feed team. Jeannie came over from the Agronomy Center to help fill in at the Feed Delivery position. We ask all of our producers to please fix or replace some of the ground to lid openers that don’t work. We do not want any of our delivery personnel falling off of bulk bins because of lids that do not work.

If there are any questions on feed, please come in or give us a call. We have an excellent team to get you the answers you need.

Checking your bins and feeders early can help us cut expenses. By ordering early we can fill loads instead of making multiple trips to the same location each day. Also be sure to check our Holiday hours and place your feed orders early so that we can all enjoy the Holidays with our families.

HAVE A SAFE AND HAPPY HOLIDAY FROM EVERYONE AT THE FEED MILL

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WILMONT-ADRIAN COOP HOLIDAY HOURS

ALL LOCATIONS

DEC 24^TH CHRISTMAS EVE – CLOSING AT 12:00 NOON

DEC 25^TH CHRISTMAS DAY – CLOSED

FRIDAY, DECEMBER 26^TH WE WILL BE OPEN

DEC 31^ST NEW YEARS EVE – CLOSING AT 12:00 NOON

JAN 1^ST NEW YEARS DAY – CLOSED

FRIDAY, JAN 2^ND WE WILL BE OPEN

As I write my last newsletter of 2008 and think of all the changes that have happened in this past year and look to the future, I can only see good things coming. With the 1^st fall under the new partnership with West-Con and Wilmont – Adrian Coop complete, I feel that the partnership is working very well. Both partners are working well together and have one common goal, making sure that their patrons are taken care of.

This fall was unlike any other that I have seen in the six years that I have been in ag retail. The past five years we have been able to get all of the fall field work done that we have wanted to, but this year we had to battle the weather more than in past years. But that is behind us and it is time to move forward.

This next crop year will be like any other, growers will need to get every bushel out of each acre. I encourage each grower to talk with one of our agronomist to find new ways to accomplish that goal. They have new products that can help get you more bushels and help your bottom line.

Happy Holidays

Matt Henning

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HAPPY HOLIDAYS TO EVERYONE FROM THE FULDA AGRONOMY CENTER!

I hope that everyone had a safe and productive fall. The fall did come to an end before we were ready. The acres did not all get done, so management decisions will have to be adjusted to handle the untouched acres. Issues that come to mind, spring soil temperature. Little or no black dirt on the surface, soil temps will rise at a reduced rate requiring more time in the spring to dry. Letting them dry down properly and not working them too wet, is the best way to reduce compaction problems. Trash is another issue to be aware of, trash has to be turned under and broke up well enough to ensure good seed to soil contact. Seed diseases will show up in larger areas as the trash from the previous crop is more concentrated in the seed zone. Seed treatments are a cost effective way to reduce the risk.

Best wishes to you and your families this Holiday Season!

Curt Ramerth

HELLO FROM ELLSWORTH!!

It’s Christmas already? Where did the year go? Well I would like to thank you all for your business, without your support we would not be here. I hope your harvest went well and safe. It was a long and drug out affair with all the wet corn and lots of it.

I would like to thank all of the guys who helped tarp the bunker. Also thank you to the

Ellsworth Boys Basketball Team for helping, it was a huge help.

WE WISH YOU ALL A HAPPY HOLIDAY SEASON AND HOPE WE CAN WORK WITH YOU NEXT YEAR!

Thanks again,

Mark and Kory

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HELLO FROM THE FARM SERVICE CENTER!

While the weather is getting colder outside, we still have some hot deals on equipment here at the FSC. Demco wagons and carts continue to be very popular. There are some new changes on the 550/650 wagons, as well as some new options for the carts. Feel free to give a call or stop on in during our customer appreciation day on Dec. 30^th to go over and learn more about some of these changes.

Although the year is about over, it is never too early to start thinking about next Spring. Liquid fertilizer kits on planters continue to be a great way to get that seed started. If you are thinking about updating to a newer planter and would like to add this option to your planter, or if you would like to update your current planter, let us know. Fertilizer kits are available for most planters (ex. John Deere, IH, Kinze, White).

I do not like to bring up the four-letter word this time of year, but I believe it is here to stay. Yes, snow is something that we have to deal with every winter here in Minnesota. For those of you that need a serious snow blower check out our Farm King snowblowers. They come in two basic sizes. Model 980 is a 8’ unit with 540 RPM PTO, while the model 1080 is a 9’ unit and has a 1000 RPM PTO. Currently we have a good supply, but that may change by the next snowstorm. Call now to get yours today!

WISHING YOU ALL A MERRY CHRISTMAS AND HAPPY NEW YEAR!

Derick Feikema

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FOR SALE: 1992 FORD F250 XLT – 4 X 4

1986 CHEVROLET SILVERADO 4 X 4

1984 MACK TRUCK, TANDEM DIESEL WITH

20 FT. ALUMINUM BOX & HOIST

ALL VEHICLES CAN BE VIEWED AT THE ELEVATOR IN WILMONT.

CONTACT RUSS AT 1-800-367-5141 OR 507-926-5141 TO MAKE AN OFFER

WE RESERVE THE RIGHT TO REFUSE ANY AND ALL OFFERS.