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Rough Road Ahead Page 6 FDA Changes Coming for Livestock Owners Page 18 Rough Road Ahead Page 6 Winter 2016 When Power and Performance Really Matter You don’t have to risk expensive downtime during the winter. Whether you rely on diesel fuel for agriculture, construction, trucking or simply getting around town, give your equipment the best fuel for cold temperatures, and keep your operation running right. All diesel fuels are not created equal. Try MFA Oil’s BOSS Performance DieselTM today. Learn more at www.bossperformancediesel.com. When Power and Performance Really Matter WINTER 2016 • VOL. 2 NO. 1 You don’t have to risk expensive downtime during the winter. fea Whether you rely on diesel fuel for agriculture, construction, trucking tures or simply getting around town, give your equipment the best fuel for 6 cold temperatures, and keep your operation running right. Rough Road Ahead: Rural Infrastructure Repairs Needed 12 MFA Oil to Return $11.8 Million in Patronage to Owners 18 FDA Changes Coming for 6 Livestock Owners 20 AAA Study Shows Top Tier Gasoline Benefits Drivers 22 Herbicide-resistant Palmer Amaranth 12 18 Confirmed in Missouri Departments Market Commentary .................24 Giving Back....................................30 Consider Contracts to Save on Fuel Supporting Special Olympics Missouri Letter from the President ...........4 From the Board .............................26 Department Focus ......................32 Clearing Up Some Misconceptions: All diesel fuels are not created equal. Try MFA Oil’s BOSS Performance DieselTM today. Sharing in the Company’s Success Field Support: Fueling MFA Oil’s Field Responding with Facts Operations Acquisitions ..................................28 The Big Picture .............................16 Ozark County LP Gas Company, Inc. Automotive ....................................34 Farmland Values Face “Near-Term 6 Tips to Get Your Vehicle Ready for Correction” News Briefs ...................................29 Winter Learn more at www.bossperformancediesel.com. WWW.MFAOIL.COM MOMENTUM /// 3 LETTER FROM THE PRESIDENT Clearing Up Some Misconceptions: Responding with Facts “It must be true, I read it on the Internet!” You’ve probably heard I something like this from a friend, relative or, more likely, one of your kids. I’m guessing most of us have had enough experience with the Internet and social media to know we can’t always believe everything we read. Recently, we discovered a dialogue about MFA Oil on an online agricultural forum. We know it’s normal for our customers to share their opinions about MFA Oil on the Internet, and we take the concerns seriously. Certainly, everyone is entitled to their opinion. However, we would be remiss if we allowed certain misconceptions to be perpetuated without response. I learned a long time ago that if you are going to argue with someone you should always stick to the facts. Emotions can sometimes get the best of us, but sticking to facts will many times douse emotional fires that arise through misguided perceptions. Photo by CHS Inc. The postings below come from two different farmers in the same chat group The sale of MFA Oil’s interest in the refinery in McPherson, Kan., has provided discussing MFA Oil. I am responding with the company with an influx of capital that has been strategically reinvested in facts to both of their comments. acquisitions to grow member earnings. Farmer A: “Who runs MFA (Oil)? How management team. They always have the the price we pay for ethanol to be higher weak and ineffective has the Board of cooperative’s member-owners in mind. than the price we pay for gasoline. Directors become. Like most organizations As president and CEO, I report directly and cooperatives over time it becomes a to the board, and my team and I are fully Farmer B: “I have a problem with them top down driven affair. The local plant accountable to them. using my patronage to buy out the took out E-85 a couple months ago. I'm competition, in order to limit my choices guessing they didn't sell enough to tie up Fact: MFA Oil has been supporting ethanol and ultimately charge me more. Their a tank. Of course they priced it within a blending for decades. We are one of the magazine recently had information about dime or less of E-10 most of the time so why largest ethanol retailers in the Midwest and all their acquisitions the last few years. It would they sell any…MFA (Oil) should be we have more E-85 sites than any other seems they've went on quite the buying dissolved and their assets returned to their Missouri retailer. spree. I wonder where they got all the shareholders.” money?” Fact: MFA Oil (as well as most retailers) Fact: MFA Oil is governed by an eight- has difficulty selling higher ethanol blends Fact: Yes, it’s true we do list our recent member Board of Directors composed of without substantial discounts for those acquisitions in this magazine and we can farmers and ranchers who are elected by higher blends. It often takes more than a agree we’ve been on a bit of a buying spree. their local delegates. Our board is very 40-cent-per-gallon discount for us to sell However, we did not use patronage dollars effective, listens intently and provides much E-85, compared to E-10. For some for these acquisitions. These acquisitions excellent feedback to the MFA Oil time, the lower energy market has caused were funded in two ways: 4 /// MOMENTUM WINTER 2016 1. The sale of our interest in the refinery in McPherson, Kan., happened at a great time and has given us millions of dollars of capital. Frankly, we had no choice in the sale and were quite fortunate that we were not bought out of our stake much sooner. It was a bit scary, because the refinery earnings represented approximately 70 percent of our income over the last 15 years; however, the sale has also provided us with an excellent opportunity. Management and the board Winter 2016 • Vol. 2 No. 1 agreed we needed to use these dollars to replace the refinery income. Together, we This magazine comes to you courtesy of MFA Oil Company, a farmer-owned decided the best way to accomplish this cooperative providing energy solutions task was by strategically acquiring similar to customers for more than 85 years. businesses that fit our area of expertise. We deliver high-quality propane, fuels and lubricants to farmers and 2. Earnings from our own operations, other customers across a 10-state which include strong earnings from our region stretching from Georgia to Utah. We don’t know who these individuals Momentum is an information service non-member business, provided the are, but we appreciate their comments. for farm families published by MFA Oil. second source of funds for acquisitions. Farmer C does a great job of pointing out Our non-member business consists of Momentum is published the ability to discuss any concerns our our Break Time, Big O Tires and Jiffy four times annually. customers might have with their plant Lube stores, in addition to the non- managers or others, if need be. For address corrections, story ideas or member business we do in our bulk fuel other inquiries, email [email protected]. and propane plants. We do our best to add value. Value can be www.Facebook.com/MFAOil defined in many ways: service, price, safety, Fact: This strategy has strengthened our www.Twitter.com/MFAOil income statements and balance sheet. So, relationships, philanthropy, etc. What one customer may find as a value, others may Address: One Ray Young Drive instead of depleting member patronage or Columbia, MO 65201 equity, we’ve improved our balance sheet. not. We know we are far from perfect, but This allows us to pay a higher percentage at the end of the day, you have a say in the President and CEO of member earnings in cash and retire matter as a member-owner. We wouldn’t Mark Fenner deferred member equity more quickly. want it any other way, and we thank those who actively participate in and defend this Vice President of Sales & Marketing Jon Ihler While negative comments easily outpace great cooperative. positive ones in this day and age, we did Manager of Marketing Services have customers defending us during the Cooperatively, Ashley Bower very same chat. See below comments from Farmers C and D. Editor/Writer Adam Buckallew Farmer C: “I only buy fuel from MFA Oil... Mark Fenner Graphic Designer here, they have good prices and services… President and CEO Kristin Branscom Have you taken time to talk with your plant manager, your district manager and your Board of Directors FDA Changes Coming Benny Farrell (Chairman), for Livestock Owners districts board member to express your Page 18 Ralph Schallert (Vice Chairman), concerns?” Floyd Buckman, Kim Diehl, On the Cover: Ronald Felten, Marion Kertz, Farmer D: “Their gas and diesel prices are The deteriorating Joey Massey, Wayne Wright lower than competitors here. I've bought condition of the nation's from them for 35 years and am a satisfied rural roads and bridges is ©2017 MFA Oil Company Rough Road a major concern for the Ahead www.mfaoil.com customer. They shoot straight unlike other Page 6 farm economy. Photo by places we've tried to buy.” Winter 2016 Clint Farlinger. WWW.MFAOIL.COM MOMENTUM /// 5 ROUGHRURAL INFRASTRUCTURE ROAD REPAIRS NEEDED AHEAD 6 /// MOMENTUM WINTER 2016 Farmers in the United States are faced with losing one of their most valuable competitive advantages over foreign competitors if drastic improvements are not made to the nation’s deteriorating network of roads and bridges. A growing list of reports have detailed the worsening condition of America’s rural transportation system and emphasized the need for long-overdue repairs and upgrades to the backroads and bridges in the Heartland.
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