The Andersons Grain Blog
The Andersons Finalizes Purchase of Elevators and Farm Agronomy Centers December 3rd, 2012
MAUMEE, OHIO, December 3, 2012 -- The Andersons, Inc. (Nasdaq: ANDE) announces today it has completed the purchase of a majority of the grain and agronomy locations of Green Plains Grain Company, LLC, a subsidiary of Green Plains Renewable Energy, Inc. (Nasdaq: GPRE)
"We are significantly diversifying our grain and agronomy businesses by expanding into Iowa and Tennessee with the acquisition of these high quality assets. Expanding our connectivity to the 'farm gate' is part of our long-term strategy, says Denny Addis, President, Grain Group.
"We are embarking on a new opportunity with a new team in new communities and look forward to providing service to thousands of new customers," he continues. "We are fortunate to be adding a skillful, knowledgeable and customer-service oriented 130-member workforce to our grain and agronomy teams. The drought aside, this year has been significant for the Grain Group in terms of growth."
The purchase includes seven facilities in Iowa and five in Tennessee, with a combined grain storage capacity of about 32 million bushels, which increases the Grain Group's storage capacity by nearly 30 percent. Two Iowa locations also have 30,000 tons of combined fertilizer storage.
Stephens Inc. acted as financial advisor to The Andersons and delivered a fairness opinion to the Board of Directors in connection with the transaction.
About The Andersons, Inc.
The Andersons, Inc. is a diversified company rooted in agriculture. Founded in Maumee, Ohio, in 1947, the company conducts business across North America in the grain, ethanol, and plant nutrient sectors, railcar leasing, turf and cob products, and consumer retailing. For more information, visit The Andersons online at www.andersonsinc.com.
Customer meetings coming to your area
Join us for updates and analysis on the current market as well as hear from our industry experts about how the 2012 historic drought can influence the market going forward and how this can impact you. Crop insurance specialists will be on hand to provide a preview of the 2013 crop insurance updates and what you can do to reduce your risk and protect your investment. We look forward to seeing you there!
Monday, November 19th
6:00pm Royal Community Building, Royal, IL
Tuesday, November 20th
7:30am Tony Noel Ag Center, Parkland College, Champaign, IL
Tuesday, November 27th
3:00pm Preble County Fairgrounds, Eaton, OH
Wednesday, November 28th
9:30am Greenville Ethanol Plant, Greenville, OH
3:00pm West Jay Community Center, Dunkirk, IN
Thursday, November 29th
9:30am Delaware County Fairgrounds, Heartland Hall, North Hall, Muncie, IN
Wednesday, December 5th
8:00am Schuler's Restaurant, Marshall, MI
12:00pm The Dow Center at Hillsdale College, Hillsdale MI
6:00pm Clubhouse Italian Grill, Golf Club of Coldwater, MI
Thursday, December 6th
10:00am Fillmore Equipment, Three Rivers, MI
4:30pm 404 Main Street, Niles MI
Saturday, December 8th
8:00am The Andersons Activity Building 1833 S. Holland Sylvania Rd, Maumee, OH
Tuesday, December 11th
6:00pm VFW Post 7574, Lyons, OH
How to determine your corn yield
The key in managing your marketing situation and your risk is to know what is in your field and controlling your emotions. We know this is a very emotional time with the drought that you are facing but remember emotions feed off of half- truths, especially about yields. The best estimates result from visiting individual fields and conducting samples to achieve an accurate yield estimate.
How do I do a yield estimate?
1. The first step is to measure off a thousandth of an acre in an area, then assess the ear count. An ear count is conducted by counting the number of kernels on each ear, then dividing by a divisor for the number of kernels in bushel. Once the location is chosen it is recommended that you do a lot of samples throughout your field to look at the difference in variability factors such as different soil types, different growing conditions and different management practices. Sampling multiple locations will determine a composite average for the field.
2. Next determine the location and choose four ear samples. For each ear, count the number of rows around (typically this is an even number), then average those together to get a one-ear- average. The next step is to count the kernels in a row being careful to only count the kernels that will be harvested off the ear. Do not count kernels that do not look like they pollenated. Once you know the number of kernels in a row, take that average and multiply that by the numbers of rows around average and finally divide that by the factor that is the number of kernels in a bushel. This will give you the numbers of ears per acre that are going to be harvested and give you a total kernel count for that acre. For example, on 30 ears, averaging 16 rows around and 28 kernels long that would give a total kernel count for that acre and divide that by a divisor. On average there are 90,000 kernels in a bushel, which is a divisor of 90. However, the divisor can be adjusted based on growing conditions. If the conditions are good the divisor can decrease to 80 or if the conditions are bad than the divisor can increase to 105 to 110. The kernel depth is still being determined based on weather conditions so use the higher end divisor to create a lower yield estimate based on current weather conditions. The yield potential is a moving target based on conditions.
Now that I know my yield how do I manage my marketing and risk?
1. First compare your production with your sales. How much of your production do you have sold? There are different actions based on being at your production, over your production or under your production. If you are over your production call your Account Representative that you contracted grain with to discuss your situation and find resolution. If you are sold well under your production you need to consider selling a small additional percentage of your production that is not priced at these historically high prices. The final consideration is relative to your yield calculation where you might have an indemnity situation from your crop insurance. At The Andersons we will have "Corn Yield Calculators" available so please contact your Account Representative for one. For iPhone users there is an application available on iTunes named "Corn Yield Calculator." This is another great tool to help you determine your yield estimate.
Andersons Video Resources 2.0 Preview! April 25th 2012
At the end of February, we will be re-launching a new video resources website. One thing you will instantly notice is the new design and layout. The video itself is now slightly larger a new multi-purpose tabbed area accompanies the video with the latest news headlines, important links, and charts if necessary. In addition, we've added preview images to all video links so you can differentiate between posts more easily and find what video you want to watch more quickly.
The most important difference: Premium Videos
Our video site, which started as a mere online experiment, has become one of our most popular online destinations. Customers love it, but so do many of our competitors. We want to ensure we are offering value to our CUSTOMERS -- by providing something of value in return for all the business they do with us. The need for a purely added value service has led us to this premium content video concept -- and we are excited to offer this service to you.
Who Qualifies as a Premium User?
Producers who have delivered grain to us in the past automatically qualify as a premium video user as long as they have an andersonsgrain.com username and password (if you do not have one, you can register for one here). If you do business with the Andersons but are not necessarily deliver grain into one of our facilities... please sign up for an account on andersonsgrain.com and then call your nearest andersons location or account rep and request access. You can find this information on one of our location bid pages.
Once you have a grainweb username and password, you can log into our video site using a special log-in form. Once you log in, you will remain a premium user for an extended period... so you won't have to log in every time you want to watch a premium video. Our goal was to make this as user-friendly as possible.
Enhanced Features include:
HTML5 video for Safari, Firefox, Internet Explorer 9 and Google Chrome.
Better Android Support
News Headlines similar to those on AndersonsGrain.com
A more extensive archive of older clips
A better video player "skin" for certain browsers.
The Andersons Completes Updates to Facility Operations at Five Locations [News Release] October 14th, 2011
MAUMEE, OHIO, October 14, 2011 -- The Andersons, Inc. (Nasdaq: ANDE) announces that it has made multiple operational updates throughout five grain facilities to improve service for customers.
Delphi, Ind. Grain Facility
The Delphi facility has increased its storage capacity and finished the construction of a new dump system which improves its ability to meet increasing customer demands during harvest. There are two new bins at the facility which increases the amount of storage capacity by 1.5 million bushels. The dump system, which includes a new scale, will help the facility to efficiently handle separate commodities with varying grades when they are being unloaded from customers' trucks.
Oakville, Ind. Grain Facility
The Oakville facility has expanded the railcar capacity from a 50 car siding to a 75 car siding which will allow the facility to sell into a larger network of rail destinations. The facility is now in a more competitive rail market which will allow for more of a competitive inbound price for customers.
Reading, Mich. Grain Facility
The Reading facility has completed three updates to its operations that include an increase in storage capacity to 3.8 million bushels with the addition of two grain bins, a new dump pit that allows up to 15,000 bushels to be unloaded per hour and a new leg that will efficiently move 30,000 bushels per hour.
White Pigeon, Mich. Grain Facility
The White Pigeon facility has added a new 730,000 bushel bin which is the fourth bin added in the past five years. This increase in storage makes the White Pigeon facility a convenient location for customers to deliver their grain.
Champaign, Ill. Grain Facility
The addition of a new 10,000 bushel per hour Zimmerman Dryer will double the drying capacity and improve the output quality of grain as it is being handled because it is being dried at a lower temperature of heat. The dryer allows high moisture corn to be passed through twice with reduced stress and broken cornels.
"These updates enable us to maintain our strong customer service while at the same time improving operations and providing customers with a more efficient process when they deliver their grain," said Mike Kiel, director, grain operations.
Click here to read the full press release
Illinois FFA Foundation October 17th, 2011
At the recent Farm Progress Show in Decatur, Illinois, The Andersons had the privilege to partner with the Illinois FFA Foundation. Several FFA Chapters from throughout the state handed out water on behalf of the foundation and collected donations from show goers. The Andersons matched up to $2,500 in donations for a total donation of $4,672.12 for youth scholarships and FFA programs. The Illinois FFA Foundation provides financial support for the Illinois FFA.
Morrisonville FFA October 17th, 2011
We were excited to partner with the Morrisonville FFA Chapter, Morrisonville, IL for the construction of four picnic tables for use in our tent at the Farm Progress Show. Morrisonville FFA constructed these tables as a portion of a community involvement project.
Summer Trade Show Season is Underway! August 30th, 2011
The summer trade show season is in full swing! The 2011 Farm Progress show just kicked off, and many more events are in the pipeline. Find out which trade shows we will be attending:
Farm Progress Show
Aug 30 - Sept 1
Husker Harvest Days
Grand Island, NE
Sept 13 - 15
Farm Science Review
Sept 20 - 22
Gateway Farm Show
Nov 16 - 17
Greater Peoria Farm Show
Nov 29 - Dec 1
Fort Wayne Farm Show
Fort Wayne, IN
Jan 17 - 19
We hope to see you there!
Fields of Promise July 20th, 2011
The Andersons Clymers Ethanol is working in their community by giving support to a program called Fields of Promise. This program utilizes an organization called the Food Resource Bank (FRB) to fund legitimate sustainable agricultural projects throughout the world. FRB's mission is to "alleviate world hunger by globally connecting local communities through agriculture." FRB can do this by getting a local growing project started. All of the inputs are donated, the crops are grown, and the profits will go towards funding a program of our choice through FRB.
This project utilizes 5.2 acres at the Clymers Ethanol site. Corn is being grown, with all inputs donated from The Andersons facilities in Cass County. Although the FRB is a global initiative, fifty percent of the profits will go to the United Way of Cass County backpack program. Next year, Phase II of this project will be to add another ten acres. With momentum, this has the potential to be a very large and successful fundraising campaign. We continue to strive to meet the core values of our company by "serving God by serving our others". If anyone would like more information or would like to help, please contact Jeremy at firstname.lastname@example.org.
Corn Seasonality July 6th, 2011
The chart below is as of June 30, using the CZ11 synthetic closing price of $5.85. This chart is a reflection of seasonality for December corn over the past 11 years. As the chart shows, prices typically peak in late May, early June and decline into September. Only three times in the past 10 years, have we seen a September price greater than the January 1 price.
The year 2011 has seen a substantial rally relative to history into the June 9 crop report when CZ11 peaked at $7.2275. It has since fallen $1.3775 or 19% in just 15 trade days. The only greater rally was performed in 2008 when prices then fell to just 68% of their January 1 price. Given fundamentals today (as we know them), this seems unlikely but surely possible. Perhaps a more reasonable estimate is the average seasonal 94% level in September, equating $5.55 CZ11. Call your account rep today for more information! Good luck trading..
Ethanol loses key vote in Senate June 18th, 2011
Ethanol suffered a loss in Washington D.C. yesterday. Effective immediately, the U.S. Senate decided to reverse a previous vote that took place last Tuesday and end the 45-cent-per-gallon Volumetric Ethanol Excise Tax Credit, also known as the blenders' credit.
Even though the blenders' credit and import tariff, which was also defeated in the same vote, are set to expire at the end of this year, lawmakers were determined yesterday to end both credits without delay. On June 30 both credits will officially expire.
The DTN/Progressive Farmer reported Sen. Dianne Feinstein, D-Calif., who supported the elimination of the credits, as saying that the "cost of the credit is $22.5 billion since 2005 and it is continuing to go up." She believes that sugar-cane ethanol that is imported from Brazil is more environmentally safe.
On the other side of the argument the article reported that, Agriculture Secretary Tom Vilsack expressed his opinion in a statement saying, "We need reforms and a smarter bio fuels program, but simply cutting off support to the industry isn't the right approach."
There was some hope for ethanol yesterday, though. A bill proposed by Sen. John McCain, R-Ariz., was blocked by a vote of 41-59 in which he wanted to end funding for ethanol infrastructure too. So whether you are pro-ethanol or against ethanol, with an estimated production of 13 billion gallons since 2005, it doesn't look like the ethanol industry will give up easily.
To read the complete article from DTN/Progressive Farmer, click here.
Twitter Popularity Growing in the Ag Industry. June 9th, 2011
A sample TweetDeck search. Adding new hash-tag searches is easy with TweetDeck's multi-column view.
You may have heard a lot about Twitter in the news lately. Everyone seems to be using it, from celebrities, news personalities, college students, bloggers, congressmen... you can't turn on the news these days without hearing about how people are connecting with twitter to read and share information with each other. Did you know that twitter is also becoming a popular tool within the agriculture community as well? By following businesses, market analysts, and feeds, twitter has become a way for agribusiness companies, ag organizations, farmers and ag media to communicate with each other.
Here at The Andersons, we use @AndersonsGrain to share relevant market updates and company information. Twitter brings our customers and industry peers together so that we can communicate and share best practices in one open forum. @AndersonsGrain has given our customers an avenue to give instant feedback instead of waiting for a yearly customer satisfaction survey. Whether you are working in the fields or sitting in a board room, Twitter provides instant communication.
Twitter has become a prime information-sharing network because of its easy access on many different devices and platforms, from your PC or mac, to your Blackberry, Droid, or iPhone. Even when you are out in the field, it is easy to launch a Twitter app on your smart-phone and stay up-to-date with the latest market information. If you haven't yet tried to use twitter, here is a list of Twitter applications you may want to consider:
• Tweetbot (for iOS devices)
• Twitter's official mobile client (for Mac, Android, or Blackberry)
You can also check up on news via the Twitter website.
By following hashtags such as #agnews, #agchat, #plant11, #USDA, or #corn (to name a few), you can find interesting people to follow and stay up-to-date on the latest buzz is regarding any AG topic you may be interested in.
If you haven't started using Twitter... what are you waiting for?! Sign up and follow us today!
Some Shifting to Shorter Season Corn June 1st, 2011
If my brief conversations yesterday with four Minnesota farmers are any indication, a shift to shorter season hybrids is underway.
Three out of four have switched their 103 to 105-day corn to a more normal 98 to 100-day corn this week. And if the projected rains happen this weekend, we could see a larger switch to 93-day corn.
I talked to seed dealer/farmer Ken Kuttner from Stewart, in south-central Minnesota, who sells DeKalb/Asgrow brands for Monsanto across a big portion of the state. "There is definitely some hybrid switching going on, and we haven't seen that for several years. Fortunately we've seen a lot of corn planted this week, with most guys sticking with their original maturity. On the flip side, I'd guess we've had five to 10% of customers shifting from 103 day down to 98 to 100-day corn," he said.
With rains in the forecast for Saturday, Kuttner feels we could see wholesale changes down to 93-day corn, especially in the areas that are just now drying out enough to start corn planting.
"It all comes down to size and scale of growers and how much risk they are comfortable with. I've got a few very large farmers who push the maturity envelope and dabble with some 111-day corn because they like those hybrids and have large drying capacity. And I have other customers who get real nervous about maturity and drydown because they haul all their crop to the elevator and have it custom dried."
For the complete story visit DTN The Progressive Farmer
Senate Committee Calls for FTA Hearing May 16th, 2011
Senate Minority Leader Mitch McConnell and seven other GOP senators urged the Agriculture Committee in a letter to "immediately hold a hearing on the potential impact" of three outstanding free trade agreements on farmers, ranchers and agribusiness. The letter argues America is losing market share in Colombia, Panama and South Korea and recently signed their bilateral agreements with Canada and the European Union is squeezing U.S. agriculture.
After noting that the U.S. exports 15% of corn, 45% of soybeans, and 25% of pork it produces, the senators argue: "In the context of a $14 trillion national debt, trade promotion should be near the top of our economic agenda, because it's job creating benefits occur without expensive programs that add to the federal deficit." read more