C R E A T I N G
P A R T N E R S H I P S
I N
A G R I C U L T U R E
this issue
P.1 Improving Customer
Service
P.1 American Ag
GrainLink
Jason Selking, Manager of Business Development
Hello again from Business Development! We have been very busy the last
couple months working on improvement and expansion opportunities. Since
the last newsletter, CGB has been working on projects that will, again,
significantly improve our existing facilities and expand our geographic footprint.
P.2 CGB Rejects
Duracade
Regional Insert
P.3 Market Update with
Dan Zwicker
P.4 Building Global Sales
P.4 Premium Grains S M
P.5 Grain Contamination
P.5 Monitoring Quality
of Stored Grain
04
MARCH
2014
CGB’s Commitment to Improving Customer
Service
P.2 American Ag cont.
**
ISSUE
CGB has been on a mission to continually re-invest capital in key areas of our
existing facilities that positively affect our customers’ grain transacting and
delivery experience. Those key areas include faster receiving and shipping
capabilities, increased storage volume, as well as larger and more efficient grain drying capacity. In
time for next harvest, we are planning to complete receiving and shipping improvements at 20
facilities, increase storage volume at four, and at another four locations we will be expanding drying
capacity.
P.6 Stored Grain cont.
In addition to improving our existing locations,
CGB is actively working to expand and diversify
the footprint of its grain origination facilities. In
the near future, we plan to announce several
acquisitions and greenfield site developments,
but considerable work is still ahead of us at this
time.
P.6 CGB-AGRIfinancial
P.7 Farm Bill
P.7 Grain Bin Safety
P.7 Career Corner
P.7 Survey Invitation
We are continually developing additional capital
projects that will improve our level of customer
service and expand CGB’s grain origination
footprint. Stay tuned for more exciting details in
the months ahead!
CGB Jeffersonville, IN facility
Productivity in American Agriculture
Kelly Buchanan, Marketing & Communications Manager, Grain Division
Stay Connected!
As the global population continues to grow, farmers are tasked with producing more food with fewer
resources and less environmental impact. A tall order indeed, and one that you, our producers, have
managed to achieve with excellence! (continued next page)
Page 1 | CGB GrainLink | March 2014
Productivity in American Agriculture (continued)
The statistics below showcase how productivity and agricultural methods have changed over the last several decades:
In 1930:
 One farmer fed 10 people
 25% of income spent on food
 22% of the U.S. workforce in Ag
Today:
 One farmer feeds 155 people
 10% of income spent on food
 2% of the U.S. workforce in Ag
Since 1960, U.S.:
 Corn yields have tripled
 Wheat yields have tripled
 Soybean yields are up 70%
From 1930-2010:
 650% more corn on 13% fewer
acres
The most populated countries in 2020 are projected to be China, India, U.S.,
Indonesia, Brazil, Pakistan, Bangladesh, Nigeria, Russia, and Japan, with an Slide from Land O’ Lakes Industry Outlook/NGFA Convention Presentation
anticipated 7.6 billion people total. Nearly half of that is expected to be in the
10 countries listed above! Food production demand is expected to soar over the next 50 years; adoption of modern business/
production management practices coupled with the application of safe and proven technologies will drive that initiative.
The story of American agriculture is a phenomenal one, and our sincerest thanks to you, the producer, for feeding a growing world!
Source: Land O’Lakes, Inc. Industry Outlook/NGFA Convention March 2013
CGB Rejects Corn Trait Duracade
Kelly Buchanan, Marketing & Communications Manager, Grain Division
Due to the lack of approvals from major export markets, CGB is not accepting crops that are not
approved for trade in the EU or China. Specifically, we are referring to the new genetically modified
Syngenta AG corn trait, Agrisure Duracade, as well as Synegenta’s MIR 162, also know as VipteraTM.
The new corn trait is planned for release by Syngenta to be planted this spring in several corn belt states.
Duracade has yet to receive approval from China which is a major importer of U.S. grains, and the EU.
Ongoing trade issues and rejections have been and continue occurring with China from another
unapproved Syngenta trait, VipteraTM, known as MIR 162. This caused extreme cost and harm to U.S.
exporters in vessel demurrage and relocation of rejected Chinese shipments. These rejections have caused concern that U.S. grains
will be, economically, too risky for exporters to contract to countries who have not approved specific traits.
Greg Beck, VP Grain Division
Planting, harvesting, and marketing non-approved traits raises the risk of contamination of the U.S. grain inventories and the likely
disruption of U.S. trade to China and other countries who have yet to approve. The risk of losing over 14% of U.S. corn exports
would have a significant impact on U.S. corn stocks build up and have a negative impact on farm prices. The trade issue goes
beyond corn to the by-products from U.S. processors such as DDGS and Corn Gluten Meal.
“CGB is committed and heavily invested in marketing U.S. grains to the world market. In today’s fast changing genetic technology,
the need for responsible introduction of traits to all markets is essential,” said Greg Beck, VP Grain Division. “U.S. producers are
facing increased competition for their products, and it is vital to be able to maintain and supply grains that meet our customers’
needs overseas,” he added.
For a list of approved traits, please visit http://www.ncga.com/for-farmers/know-before-you-grow/individual-event-table or contact
your local CGB office.
Page 2 | CGB GrainLink | March 2014
Naples, IL Region Round-Up
Record Low Temps Make River
Navigation Difficult
Christy Ford, Grain Merchandiser
Christy Ford, Grain Merchandiser
Record low temperatures continue to harass the Midwest,
making river transportation challenging. Typically, the
Mississippi River closes every year north of the Port of Saint
Louis, and The Army Corps of Engineers takes this opportunity
to repair any locks. The Illinois River usually remains open
from Saint Louis to Chicago, but not this year. Certain areas
north of Peoria have had to close where the ice has made it too
dangerous. The river at Naples, IL has remained open even
with ice being 18 to 20 inches thick.
What does this mean for barges? An Illinois River tow is usually made up of 15 barges.
With ice narrowing the channel in the river, only tows of 4-6 barges can make it through.
Ice can have sharp edges that can
tear into the side of a barge and is
extremely hard on boats and
equipment. And, frigid temperatures make it hard for the barges to
get repaired and cleaned properly
so they can be loaded again. "Barge
lines will need several weeks to get
caught up, which could mean most
View from top of bin deck in Naples, IL
of March," said Aaron Appel, a
Southbound Barge Freight Trader, “The cost of barge freight has increased due to tight
supply.”
In any given year, one billion bushels of grain, or 60% of bulk agricultural exports, are
moved to world ports by the Upper Mississippi and Illinois Rivers. The river system
makes it possible to import/export coal, salt, fertilizer, pig iron, oil, ethanol, and grain.
The forecast has rising temperatures and sunny days ahead, which sounds like good
news but does bring with it the risk of flooding and ice gorging. “The best thing would
be for temperatures to warm up and include rain which helps melt the ice” said Appel.
Contact Us!
Merchandisers
Naples, IL
Brett Rohlk-Ext. 212
Matt Hubbert-Ext. 256
Chris Vogler-Ext. 228
Kody Mefford-Ext. 213
Phone 800.252.7711 or 217.754.3331
Greenfield, IL
Stuart Twitchell, Manager
Christy Ford
Phone 217.368.3031
Farmersville, IL
Larry Lucas, Manager
Phone 217.227.3272
Smithshire, IL
John Twomey
Phone 309.325.7200
Colusa, IL
Burnside 217-746-3221
Ferris 217-746-3771
Colusa 217-755-4221
Wever 319-372-7852
Nauvoo 217-453-2216
Dallas City 217-755-4221
Gladstone, IL
Austin Twomey, ext. 4808
Brian Steele, ext. 4813
Jay Day, ext. 4812
Ken Quinn, ext. 4809
Ryan Horsfield, ext. 4806
Phone 855.643.6477 or 309.457.4800
Employee Spotlight
Chris Vogler, Grain Merchandiser
I’m from Rural Schuyler County, IL and attended Greenville College where I earned a degree in Business Management. I began
my career with CGB as a grain merchandiser and have since added freight trader and trading of truck house grain to my resume.
When I was younger I wanted to be a farmer, so my career path has been a natural fit with what has always been my interest. I
currently work at the Naples, IL facility, and really enjoy the challenging environment that also promotes individual growth.
My wife, Andrea, and I have three children, Josey age 9, Katelyn age 7, and Devin age 5. Away from work, I enjoy playing sports,
hunting, and reading.
Naples IL | CGB GrainLink | March 2014
Market Update: Where Do We Go from Here?
Dan Zwicker, Market Analyst
While the frost line is
deep in many areas of
the Midwest growing
region, time is running
out for old man winter
and it won’t be long
before field work begins
Screenshot of Dan Zwicker, Market Analyst, peracross the highly
forming daily Midday Market Update on CGB’s
youtube channel (link below):
productive soils of the
www.youtube.com/cgbmarketinfo
central U.S. The
uncertainty for the trade to sort out is what the actual
planting numbers will look like when it is all said and done.
USDA’s Ag Forum numbers put the four major crop
plantings at 238.5 million acres versus 238.3 million last
year. It broke down to 92 million acres of corn, 79.5 million
acres of soybeans, 55.5 million acres of wheat, and 11.5
million acres of cotton. For the most part, the Ag Forum
acreage numbers are nothing more than a starting point.
Prices, weather, and the four to five million missing acres
between now and the end of May will likely change the mix
and level.
USDA’s Ag Forum supply and demand projections put corn
demand for the coming year at 13.380 billion bushels,
slightly higher than the current year. However, their
production estimate of 13.980 billion bushels and this year’s
carry in level of 1.4 billion bushels results in an ending
stocks number of 2.1 billion bushels. That is what the trade
is focusing in on to give the corn market its bearish tilt. My
concern with USDA’s forum estimate is the 165 bushel per
acre yield they used in tracing out their balance table. Using
trend line yields to map out a supply and demand table
hasn’t worked out so well for USDA over the past several
years, so when one uses a more practical yield the balance
table doesn’t look that burdensome well ahead of the
growing season.
As I write this article in early March, the excitement for the
coming year appears to be the soybean complex. This year’s
strong export demand from China for protein has soybeans
sales 100 million bushels above USDA’s 1510 projection.
Without some big sales cancelations and/or shifting of sales
to the 2014/15 crop year fairly soon, it will be the function of
the soybean market to reach a price level that will get the job
done. If one just subtracts the over sales number of 100
million from the current ending stocks projection of 150 milPage 3 | CGB GrainLink | March 2014
lion, the carryout sinks below pipeline at 50 million bushels.
Personally, I believe larger soybean acreage is going to result
as I look for the 4 to 5 million missing acres to show in soybeans. In fact, I would not be surprised to see corn acres drop
depending on how prices trade over the planting season. A
move in the corn/soybean ratio to 2.75:1 will move corn acres
to soybeans.
Click here, or visit us on facebook, to view charts that include
the corn/soybean ratio for new crop futures, how December
14 futures are following a 25-year price pattern, and how
November 14 futures are following a 25-year average price
pattern. Both December corn and November soybeans have
done a decent job of following the average season pattern of
price strength through February. Whether this continues into
March remains to be seen, but take notice that the markets
have a tendency to break prior to the March Stocks and Planting Intentions report. This would suggest one should have
downside price protection on a solid increment of new crop
production before the break begins in March.
Our Grain Origination team has many different contracts
available that will allow producers to manage downside price
risk and still keep the door open for better pricing
opportunities if they materialize during the growing season or
at delivery. I encourage you to visit with your local CGB staff
over the next couple of weeks to discuss.
Building Global Sales - My Visit to Doha, Qatar
Andre Gauger, Global Feedgrains Originator, Zen-Noh Grain Corp.
The U.S. Grains Council sponsored a conference held in Doha, Qatar, which is put
together as an informational session for buyers of corn and wheat in the Middle East
and focuses on demand for both bread and animal feed.
It was interesting to learn that, in this part of the world, nearly 20% of a person’s
calories comes from bread. That is far higher than anywhere else in the world and
makes this region a dominant importer of wheat. But also, consider that these
economies are growing very rapidly and that means incomes are growing. With this
growing affluence, people are eating more meat every day. Because the populations
Dairy Farm in the Middle East
are so much smaller than China and India, this economic growth doesn’t have such a dramatic impact on world grain demand, but
in our view as an exporter, the Middle East is a very important destination for U.S. grains.
I attended this conference mainly to meet with one of our corn customers. They are a huge dairy company in Saudi Arabia that has
around 75,000 dairy cows and produces about one billion liters of milk each year. It is an amazing sight to see a single operation
containing 25,000 cows in the middle of the desert. This customer also produces broilers and bakery products for grocery
stores. Their products are dominant on the shelves of grocery stores anywhere you visit in Saudi Arabia, Qatar or the UAE.
One of the things that we like best about this particular customer is that they only buy U.S. corn. After last year’s short corn crop,
this company was the only importer in the Middle East and N. Africa that bought any U.S. corn. The softer dent corn is easier for
them to turn into flakes for their feeding operations, and they appreciate the consistent quality that they get from vessel to vessel!
Premium Grains SM Program Highlights
Stefani Hasselbring, Market Development Logistics
CGB’s Premium GrainsSM programs are designed to match the appropriate grains with the end users’ needs, and our expertise
provides the desired products and systems to customize programs that deliver results. Below are the expectations with Premium
GrainsSM during seed selection, planting, and chemical application along with some recommended practices.
Seed Selection
 Select/confirm Non-GMO seed hybrids/varieties with CGB or seed company representative.
 Verify the seed delivered matches your Non-GMO seed order. Extra letters after seed name/number can indicate delivery of
GMO seed by mistake.
 There is ZERO tolerance for the presence of unapproved hybrids/varieties.
 Retain planting records. This includes seed receipts, seed tags, planting dates, hybrids/varieties, and fields.
 Prepare for harvest bin decisions. Traceability of hybrids/varieties should be included in this decision.
Planting
 To minimize risks of cross pollination, do not plant Non-GMO corn within 50 feet of GMO corn hybrids.
 Non-GMO seeds need to be kept separate from GMO hybrids/varieties, and planter boxes must be cleaned.
 Establish border rows per contract requirements, and use field markers to differentiate crops.
 Whenever possible, plant Non-GMO first to minimize cleaning.
 Scout fields for emergence, weed control, insect problems, and volunteer corn.
Chemical Use
 Only use chemicals that are approved for use on that crop and always at label rates or lower.
 Follow all directions, precautions, and restrictions that are listed on the product label.
 Keep chemical records including chemical names, dates, fields, rates used, and applicator.
 No chemicals to be used in storage units or applied to the grain after harvest, use
diatomaceous earth products like Protect-It® or INSECTO instead.
Page 4 | CGB GrainLink | March 2014
Grain Contamination
Greg Beck, VP Grain Division
U.S. exports have seen increased competition due to the past several years’ higher corn prices. Pricing from South America and the
Black Sea region has been very competitive with U.S. origins, if not cheaper over the past year and a half. One thing we can do to
keep our exports as strong as possible is to ship uncontaminated grain. Foreign buyers appreciate the U.S. for its generally better
quality corn. Even if our exports aren’t price competitive, they will look at U.S. corn for quality reasons. Grain contamination and
our efforts to control the induction of metal products is just one way to help exporters make more grain sales, which helps all of us.
Following are several photos of our daily barge/rail unload at our export elevator. We’re always looking for ways to reduce this
contamination, but some inevitably gets through. We sincerely appreciate your due diligence to ensure the highest quality grain for
our export operations, and we will continue with innovative, creative ideas to improve our processes!
Monitoring Quality of Stored Grain
Scott Lawson, GM of Operations
As we leave the winter months and move into spring and summer, it will be important to have
a plan in place to monitor and maintain the quality of grain if you’ve stored portions of your
crop on the farm. If quality problems are encountered this spring or summer, it will be equally
important to have a plan in place to deal with those problems.
The monitoring and maintaining plan should include the following:

Prior to filling the bins, the old grain should be removed from floors, walls and aeration
channels. That, along with pre-treating the empty bin with some form of approved fumigant,
will help combat infestation later on.

Also prior to filling, the roof and walls should be inspected for holes/leaks. Any holes should be patched, thus keeping rain/
moisture out of the bin.

After filling the bin, the core (fines accumulated in the center of the bin) should be removed/pulled out in order to allow the
air to flow evenly throughout the mass of grain.

Keep the grain temperature within 10-20 degrees of the average daily ambient temperature. Temperature cables in the bin are
a very helpful tool in achieving this. Also, an aeration system that will provide 1/10 to 1/7 cfm should be adequate in changing the
temperature on the mass of grain. Cooling the grain down in the fall and winter is important as well as warming it back up in the
spring and summer. Try to stay away from getting the grain too cold in the winter (below 30-40 degrees) or getting it to warm in the
summer (over 60-65 degrees).

Once the grain is cooled down in the early winter months, reading temperature cables once per week should be adequate. As
spring approaches, temperature cables should be read at a minimum of twice per week. If you do not have temperature cables, run
the fans to see if you notice any sour odors coming from the grain. Those odors are a good indication of quality problems.

As you move into the spring and summer and you start to warm the grain, it’s important to know that once the grain temps are
50 degrees and above, bugs will come out of dormancy and infestation can occur. Infestation will cause kernel damage which can
create hotspots in the grain. Once heating starts, grain degradation follows. There are different tools available to monitor bug
activity (i.e. pheromone traps). Utilizing these tools along with a sound fumigation plan will help minimize this risk. (cont. next page)
Page 5 | CGB GrainLink | March 2014
Monitoring Quality of Stored Grain (continued)
Most quality problems in the spring and summer will revolve around hotspots in the grain mass showing up. If these quality
problems start to occur, running the fans to cool the hotspot down would be one of the first steps in remediating the problem.
One important thing to remember is that once degradation starts to occur, the shelf life of the grain gets shorter. If the quality
problem continues, along with running the air, the plan should involve moving the grain. Depending on where the problem is in
the bin, all the grain in the bin may not need to be moved. If the hotspot is in the top of the bin, you may be able to remove the
heating area of grain without having to move the rest of the grain in the bin.
If nothing is done when quality problems are observed, the value of the grain deteriorates along with the quality. Keep a close eye
on things and take safe precautions to ensure the best quality grain for your farming operation.
Caution: For years, people have been going into the tops of grain bins to check on the quality of the grain or attempt to remedy a
quality issue. It is very important to know that there is a tremendous amount of risk, including entrapment and suffocation,
associated with entering the bin from the top into a mass of grain.
Some Money Thoughts as 2014 Moves Down the Pike
Bill Medley, National Sales Manager, CGB-AGRIfinancial Services
Dah, could’ve had a V-8!
It’s a familiar line from an old TV
commercial we know. Sometimes,
we all have those moments and
many producers are beginning to feel
a bit like that regarding the end of
bonus depreciation.
They’re now thinking forward, and
one of the new realities is that there
may be fewer tax deductions at the
end of 2014. With crop prices being softer, some suggest it’s
not going to be a problem. But most producers are still
focused on farming for a profit this year, and when it’s done,
the aspect of giving more of that income back to the
government isn’t their first choice.
William “Bill” Medley, National
Sales Manager
What can be done about it? One area that might be
considered are investments in farm buildings where a Lease
financing structure could end up providing significant tax
savings. That’s because a Lease is a fully deductible farm
expense ... it’s a rental payment. By comparison, paying cash
or taking a loan on that same building leaves you with a 20year depreciable life (under IRS rules). And that translates to a
lessor deduction.
Let’s keep with this old TV commercial theme. Here’s
another: “It’s two, two, two mints in one.” Ah, the advent of
Page 6 | CGB GrainLink | March 2014
Certs! That little candy with the breath freshening power. Now
let’s look at the financing equivalent.
A long term, fully fixed rate of 15 or even 25 years is
appealing to most producers. But many farmers back up a bit
when they learn the price for that kind of rate protection.
Moreover, they also see the attractiveness of shorter term 5year rates. So, can you have two, two, two loans in one? The
answer is an emphatic “yes you can”. Oftentimes on a
mortgage, we can mix a 10, 15 or 20-year fixed rate with a
shorter 3- or 5-year strip of debt. The resulting loan offers a
lower blended rate (think savings) but it also protects the bulk
of your investment from interest rate volatility.
With this kind of funding you can do 2 things:
1. Buy into a lower long term rate because you can opt for
things like a 5-year restriction on early prepayment.
2. This doesn’t prevent you from paying down the loan –
you simply apply extra payments on the short piece.
If we do see interest rates heat up
later this year, a strategy like this
could be a very effective management tool. Rates jumped 150 basis points last year. It’s certainly possible that we could see rises like that again in 2014.
If you’re using a 5-year ARM today, think about that. Within
just two years, there’d be enough rate volatility to almost double your cost when that loan re-prices in a few years.
We Have a Farm Bill!
Grain Bin Safety
Diversified Crop Insurance Services Marketing Department
With the passage of the 2014 Farm Bill,
farmers need solid crop insurance knowledge
now more than ever before. Congress has
placed its confidence in the crop insurance program. They eliminated many programs
that cost the taxpayers millions of dollars, encouraging farmers to take more responsibility
for their operations.
The new farm bill favors those who are good record keepers and good managers.
Growers need to make many choices, not just what policy to buy, but also what coverage
level, use of optional units, revenue, whole farm, and a magnitude of additional items to
consider.
Crop Insurance is not for the weak at heart. In order to prepare a risk management plan
that allows you to take less risk and make more profit, you need to speak with someone
who KNOWS crop insurance. You need an agent who will take the time to listen to what
your unique needs are and provide a plan for you to follow that works best for your
situation.
Don’t assume that reading information on-line or in a brochure will be enough to
understand your policy. Attorney Kenneth Ackerman blogged recently, “Making good
choices demands knowledge.” Diversified Crop Insurance Agents have been and
continue to be provided training and education on how to properly understand the
various aspects of the new farm bill and how it affects farmers and their operation.
Growers have new options this year and with prices hovering low, this is a good time for
farmers to spend some time really listening to their agents.
We encourage you to contact your local DCIS agent as soon as possible to consider your
options for 2014 and beyond. Crop Insurance policies are complicated. There are rules,
regulations, and strict deadlines that must be adhered to. Your DCIS agent will guide you
through the process and provide the support you need to ensure that you are preparing
the best risk management options for your business. Let our experience team put our
experience and tools to work for you. To find an agent near you, call 217-479-6068 or
email info@diversifiedservices.com.
Grain bin hazards pose a serious risk if
not handled properly, and it’s of the
utmost importance to identify and
understand these hazards to minimize
risk to as low as reasonably possible and
avoid injury.
Below is a list that includes some of the
more common hazards that can occur:









Flowing Grain (click here to
nominate your local fire
department to win grain bin rescue
training and tube)
Bridged Grain
Crusted Grain
Augers
Bin Collapses
Fires and Explosions
Toxic Atmospheres
Electrical Components
Ladders
For further details on avoiding these
hazardous situations, please visit the
Grain Bin Safety Week website at the
link below:
http://www.grainbinsafetyweek.com
Career Corner
We Want to Hear from YOU!
We offer a diverse set of business units/divisions and are seeking
Please take a quick survey and let us know your thoughts
regarding our service and what you’d like to see in the
future editions! Click here, or copy and paste the web
address below.
individuals that have a strong set
of core values and possess a
strong desire to succeed.
A few of our current openings include:
 General Laborer, Grain / Jeffersonville, IN & Uniontown, KY
 Staff Accountant / Jeffersonville, IN & Burlington, IA
 Maintenance, Grain / Louisville, KY & Jeffersonville, IN
 Maintenance, CTLC / Traveling
Visit us online at www.cgb.com/careers to apply!
Page 7 | CGB GrainLink | March 2014
https://www.surveymonkey.com/s/grainlinksurvey
Happy Easter to you
and your family!