2012 Agricultural Progress

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grape industry

continues to evolve

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wind projects set

national pace

Page 5h

new Co-op upgrades

glidden elevator

Page 23h

maurer moves into

alumminum trailers

Page 28h

By LARRY KERSHNERFarm News news editorFORT DODGE — The

North Central Ag IndustrialPark on the northwest edgeof this county seat city ofWebster County, is in theprocess of expansions thelikes that have Iowa leadersbuzzing.

At issue is the March2011 announcement thatCargill purchased the for-mer Tate &Lyle wetmilling plant— puttingabout 100people towork full-time — andthe October2011 an-nouncementthat an “overthe fence”company — CJ America —will build in the park next toCargill to process aminoacids for livestock feed, em-ploying another 180.

Both plants are expectedto be operational in 2013.

“This deal is so big,” saidDennis Plautz, director ofBusiness Affairs and Com-munity Growth for FortDodge. “Not a job out therewill be under $20 an hour.People recognize how bigthis opportunity can be. It’lladd value three times to thecorn product.”

Plautz described the de-velopments as potentiallybeing “a world class bio-economy park out there.”

He confirmed on Feb. 9that since the early 2011 an-nouncements, “everything isprogressing.” He said FortDodge Community Better-ment is ready to close onfarm land where CJ Ameri-ca’s plant will be construct-ed. Site preparation is ex-pected to begin soon.

With Valero already dry-milling more than 40 mil-lion bushels of corn annual-ly for ethanol, selling thebyproduct distillers’ driedgrain as livestock feed, nowwill come Cargill wet-milling more than 50bushels of corn each year,

for ethanol initially — 115million gallons annually.

“Our vision is to eventu-ally produce other bio-basedproducts at the facility, saidCargill spokeswomanNicole Reichert. Exactlywhat else may be producedhas yet to be announced Re-ichert said.

Purchasing amino acidsfrom Cargill will be anotherplant, CJ America, whoseparent company is CJ Cheil-Jedang Corp., based inSouth Korea. It’s a similar

scenario that Cargill hasnear Eddyville in south cen-tral Iowa.

“We believe that a highlyefficient, well-located cornwet mill ethanol plant fitswell into our bio-productportfolio,” said Alan Willits,president of Cargill CornMilling North America, in apress release. “We see anopportunity in Fort Dodgeto replicate the success wehave had at our Blair, Neb.,and Eddyville biorefinerycampuses.

According to Willits, theplant will provide the baseload corn grind for the cam-pus.

Shelly Blunk, director ofeconomic development andindustry training at IowaCentral Community Col-lege, said Cargill will beable to take advantage of jobtraining programs offered atthe college.

When completed, FortDodge will be a world classbiorefinery campus that willproduce ethanol and other

bio-based products, shesaid.

After the Tate & Lyleplant, which never saw aday of commercial produc-tion, was idled in March2009, city officials went towork to find a suitable userof the facility.

Fort Dodge Mayor MattBemrich said officials iden-tified six potential compa-nies that could fill the space.

“Cargill was the best ofthe group,” Plautz said. “Ithink everybody’s going to

come out of this a winner.”In April 2011, the Iowa

Economic DevelopmentBoard awarded Cargill a $2million loan and tax creditsworth up to $603,000 as in-centives to create its pres-ence here.

Late in 2011, CJ Ameri-ca was awarded a $1.9 mil-lion loan by the Iowa Eco-nomic Development Au-thority Board. One-halfpayable at no interest and

Ag Industrial Park is developing

Long-term PLans for the north CentraL ag InDustrIaL Park call for its eventual expansion south to u.S. highway 20near moorland. rail spurs connecting the Canadian national and union Pacific lines, which intersect near the park, are also proposed.Cargill and CJ america plan to open their plants under construction in 2013.

Submitted graphic

CJ america will build next to Cargill, process amino acids

S ee AG PARK, Page

Dennis Plautz

friday, feb. 24, 2012/Sunday, feb. 26, 2012 www.farm-news.com farm newS / The meSSenger, forT dodge, iowa 1h

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the other half forgiven if CJAmerica creates and main-tains jobs.

Other incentives include:∫ A refund of up to

$4.79 million in sales taxespaid during construction.

∫ A $2.86 million in-vestment tax credit.

∫ A $100,000 researchand development tax credit.

Plautz said the combinedwater needs for Valero,Cargill and CJ America,once all three are function-ing will be 8 million gallonsper day. Upgrades to thecity’s water supply capabili-ties will be paid through rev-enue bonds, Plautz said.

Fort Dodge’s wastewatertreatment plant is being up-graded, Plautz said, to han-dle the extra flow from theag industrial park.

Plautz predicted the twoprojects will generate hun-dreds of millions of dollarsworth of contracts for localbusinesses, hundreds of jobspaying about $20 per hour,higher corn prices for areafarmers and additional activ-

ity for local stores andrestaurants.

‘’I believe it’s the largestopportunity we’ve everhad,’’ Plautz said of the agindustrial park. ‘’Now it’sup to us to make this oppor-tunity work for us.’’

The availability of land,water, corn and, especially,two major intersecting rail-road lines, led to the creationof the ag industrial park.

‘’I see the economy herechanging from a lower price,lower wage commodityagricultural market to a val-ue-added, higher price, high-er wage kind of economy,’’he said.

Plautz estimated that theconstruction and renovationof the plants will generate$80 million worth of workfor local companies.

Bill Shea, a Messenger staffwriter, contributed to thisreport.

Contact Larry Kershner at(515) 573-2141, ext. 453 [email protected]

Ag Park Continued from Page 1H

By LARRY KERSHNERFarm News news editorCurrently the two area

ethanol plants, Valero inFort Dodge and POET inGowrie, are consuming400,000 corn bushels daily.Once operators at Cargill’swet-milling plant in FortDodge throw the switch in2013, the three entities willbe crushing 550,000bushels daily, an annual rateof more than 120 millionbushels.

As much as that sounds,it’s not quite half of thebushels harvested in Iowa’scentral district comprised ofthe counties of Webster,Hamilton, Hardin, Grundy,Boone, Story, Marshall,Tama, Dallas, Polk, Jasperand Poweshiek. Eventhough a small portion ofcorn was grown and fed as

silage, there is still enoughcorn, on paper anyway, tomeet thethree plants’corn demand.Cargill andthe twoethanolplants will bepurchasingcorn stockfrom otherarea countiesas well.

However,elevators andfeed mills will also be com-peting for corn, which leadsone community leader topredict that the increasedcash sales will tally about$10 million, or the equiva-lent of trimming the cashbasis by 20 cents, onceCargill starts production.

The basis is the difference

a local corn user will buy to-day, as opposed to a futurescontract at a later date. For

instance, onFeb. 9 at 1p.m., Marchfutures pricewas at $6.33per bushel.But elevatorsaround theWebsterCounty areawere offeringimmediatecash sales of

$6.14, 19 cents under thefutures price. That 19 centsis the basis.

Dennis Plautz, director ofBusiness Affairs and Com-munity Growth for FortDodge, the increased corndemand will raise the localbasis by 20 cents, whichmeans it could be equal to,

or greater than the futuresprice.

Keith Dencklau, chair-man of the Webster CountyBoard of Supervisors, saidduring a 2011 interview,that Cargill’s facility in Ed-dyville has, at times, had azero basis effect on WapelloCounty corn sales. That fa-cility produces ethanol, highfructose corn syrup andgluten. That plant also hasled to the creation of twomanufacturers that useCargill’s corn products.

“Even if they lower thebasis by 10 cents,” Denck-lau said, “it’ll be good foragriculture.”

‘’This can generate mil-lions of more dollars thatwill be spent locally,’’ BillHoran, a Knierim-areafarmer and member of aU.S. Department of Agricul-ture biofuels committee,said when the project wasannounced.

Welcome news for E-15Lucy Norton, managing

director for Iowa RenewableFuels, said Cargill’s an-nouncement is good newsfor the industry which mustblend E15 for vehicles man-ufactured in 2001 and later.The Environmental Protec-tion Agency is finalizing itslabeling and other rules gov-erning E15 for a summerstart.

“This will make addition-al ethanol gallons avail-able,” Norton said. Sheadded that the timeliness ofCargill’s start is also good.

She said by the time theplant is operational, therewill be more infrastructurein place to deliver highervolumes of ethanol toblenders.

She said that by 2014, 85percent of the cars that arecapable will be burningE15.

“That’s a need for 7 bil-lion additional gallons,”Norton said, “and that’sequal to Iowa’s total pro-duction in 2010.”

Contact Larry Kershner at(515) 573-2141, ext. 453 [email protected]

Area corn sales could increase by $10 million

Bill

Horan

Keith

Dencklau

Valero, PoeT consuming 400,000 bushels daily“This will make additional

ethanol gallons available.”—Lucy Norton

Managing director, Iowa Renewable Fuels

2H Farm News / THe messeNGer, ForT DoDGe, Iowa FrIDay, Feb. 24, 2012/suNDay, Feb. 26, 2012

By LARRY KERSHNERFarm News staff writerALGONA — A

biodiesel plant that ran forjust one week in 2006, isunder new ownership andback in capacity, in thiscounty seat community ofKossuth County.

Ag Processing Inc. Coop-erative purchased the formerEast Fork Biodiesel LCCplant in2011 fromCoBank. Theplant, with aproductioncapacity of60 milliongallons an-nually, satidle to fiveyears. AfterAGP madesubstantiveimprove-ments andupgrades tothe system,said LouRickers,plant manag-er, the plantwas back inoperation bySeptember2011.

“We’re fully functional,”said John Campbell, AGP’ssenior vice president, duringa Jan. 26 open house.“We’re here, and we’re run-ning.” Reopening the planthas added 31 jobs in theAlgona market.

Campbell said a formalribbon cutting will be heldlater this spring.

Rickers told media andassembled lawmakers atthe open house that theplant ran for one week un-der the direction of a hand-ful of engineers before thecommodity markets in2006 made producingbiodiesel unaffordable forthe new plant.

U.S. Rep. Steve King, R-Iowa, said he’s “happy thisplant is back in operation,putting people back to

work and adding value toagriculture.”

King said he recalled thatin the 1970s ag leaderswere puzzling as to how toimprove grain marketing.During the economic crisesof the 1980s, “people re-placed capital with ideas

and developed the renew-able fuels industry.

“We didn’t see largemanufacturers like AGP andCargill, but we saw farmersput their funds together andmade this happen, doing theengineering and product de-velopment.”

He said ag lawmakers inWashington took care of thepolitics getting the blender’scredits and the RenewableFuels Standard passed.

“All new wealth comesfrom the field, a foundationthat will build capital overand over again,” King said.

Campbell said AGP does-n’t purchase soybeans direct-ly from producers, but fromits co-op members. Soybeansare kosher-crushed in EagleGrove. That oil is transferreddirectly to the Algona plant.Within 48 hours, a tanker ofbean oil is ready for shipment

as biodiesel.Glycerin, a co-product of

biodiesel processing, is thensold to the human foodchain, Campbell said.

Methyl ester is the plant’sprimary product. The plant

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Revived biodiesel plant back in operation

John Campbell, seniorvice president for AGP Co-operative, said the chal-lenge ahead for biodieselplants lies in Washington,where theObama Ad-ministrationhas allowedthe blender’scredit tolapse, withno indicationif the creditwill be ex-tended.

He said theRenewableFuels Stan-dard was set in 2006.

“We’ve done our part,”Campbell said. “And theyhaven’t been consistent.The extension of the creditinvolves 535 people. Ex-tension of the credit and2013 (RFS) mandate in-volves one person — Presi-dent Obama.”

He said the industry isurging the president to ex-tend the RFS.

“The Environmental Pro-tection Agency has beengreat,” Campbell said.“Saying the mandate shouldbe extended to 1.28 billiongallons (in 2013).”

The current mandate is1.2 billion gallons for2012.

“But the White Househas not made a decision,”he said.

At a Jan. 26 open houseof AGP’s resurrectedbiodiesel plant in Algona,U.S. Rep. Steve King, R-Iowa, said “we’re not thereyet,” concerning the ex-tended blender’s credit. Buthe indicated there is hope.

He said Washington hasmany ethanol enemies hecalled “uninformed sources.”Ethanol’s blender’s creditwill not be renewed. “Butbiodiesel is out of the targetarea,” he said, adding hehopes to see the credit goback in place and the RFS

Lou RiCKeRS, right, agP’s plant manager, shows rep. Steve King, r-iowa, the process in which the biodiesel plant’s processes ex-tract methyl ester and glycerin, the company’s two primary products from soy oil.

-Messenger/Farm News photo by Larry Kershner

agP buys former east fork biodiesel facility, is ‘fully functional’

S ee AGP, Page 4H

Campbellexpectsextensionof blender’scredit in ’13

S ee CREDIT, Page

Steve King

JohnCampbell

LouRickers


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PROGRESS 2012

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AGPContinued from Page

recycles all water used inthe process, Rickers said.

The plant operatesaround the clock with fourshifts. The daily goal is tofill 30 railcars.

The loading area is capa-ble of off-loading trucksand loading railcars simul-taneously.

Campbell said whenAGP bought the plant, ithad no railcars available.Most were in South Dakotafor the growing oil industryin there.

However, AGP has se-cured the lease of 250 ofits own cars last July, withmore being refurbished forfuture delivery.

“Our rail customers areon all coasts,” Campbellsaid.

Contact Larry Kershner at(515) 573-2141, ext. 453 or [email protected]

Plant oPerators John tschritter, left, and Todd Lang watch a bank of computer screens, constantly monitoring the distilla-tion processes throughout the aGP’s biodiesel plant in algona.



By LARRY KERSHNERFarm News news editorIowa continues to lead the

U.S. in wind energy as theeconomy has refreshed andwind turbine constructionhas restarted after a two-year hiatus from 2008 to2010. MidAmerican Ener-gy Co., based in DesMoines, announced in Janu-ary the development of newwind projects in Iowa, total-ing 407.1 megawatts. Thecompany said projects solid-ify its rank as the No. 1 rate-regulated utility in the U.S.in terms of ownership ofwind-powered capacity.

“Wind is a viable renew-able energy resource thatenhances our energy portfo-lio, providing additionalgeneration at a reasonablecost for our customers,” saidBill Fehrman, president andchief executive officer ofMidAmerican Energy.“These projects also fulfillour commitment to Iowaregulators and our cus-tomers.” In 2009, Mi-dAmerican Energy receivedapproval from the IowaUtilities Board to add up to1,001 megawatts of wind-powered generation by2013. “I’m proud to say wehave agreements in place tofulfill that commitment,”Fehrman said.

MidAmerican Energy re-cently reached an agreementwith RPM Access for theacquisition of the 103.5-megawatt Vienna wind proj-ect, which will be located inMarshall and Tama coun-ties.In December 2010, Mi-dAmerican announced itwould add 593.4 megawattsof new wind-powered gen-eration in Iowa. The proj-ects included 119.6-megawatt Laurel wind proj-ect, located in MarshallCounty; and the 29.9-megawatt Pomeroy windexpansion project, locatedin Pocahontas and Calhouncounties.The final portion ofthe 593.4-megawatt expan-sion project was placed in-service by year-end 2011.

MidAmerican Energy’sother owned wind projectsare located in Buena Vista,Carroll, Crawford, Hamil-ton, Polk, Sac, Wright,Floyd and Pottawattamiecounties, totaling 1,284.3

megawatts of wind genera-tion.

When the 2012 windprojects are complete, Mi-dAmerican said it will own2,284.8 megawatts of windgeneration, with approxi-mately 29 percent of its to-tal generation capacity pow-ered by wind.

MidAmerican Energy be-gan building wind energyprojects in 2004. When the2012 wind projects arecomplete, the company willhave invested approximate-ly $4 billion in wind-pow-ered generation projects inIowa.

Other projectsRed Rock Wind Energy is

proposing a 300 megawattwind farm developmentsouth of Estherville in Em-met and Dickinson counties.The project area is in the de-

velopment stages of windresource assessment, windturbine layouts scenariosand environmental impactstudies.Red Rock’s parentcompany is National WindLLC, based in Minneapolis,

Minn.Currently, five on-site

meteorological towers arecollecting wind data.

Red Rock retained ExcelEngineering, based in Fonddu Lac, Wisc., to evaluatethe interconnection possibil-ities and prepare an inter-connection strategy.Exceland National Wind haveidentified several options tointerconnect the project’sgeneration to the transmis-sion grid.

The company is currentlyworking with prospectiveutilities to co-develop this

wind project.The project is scheduled

to be commercially opera-tional between 2012 and2015.

Many of the investors inRed Rock Wind, includingNational Wind, are also de-veloping the NorthStarWind Farm, a 200megawatt community windproject adjacent to RedRock Wind Energy in Em-met and Dickinson counties.

Contact Larry Kershner at(515) 573-2141, ext 453, [email protected]

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Wind projects set national pace

Four oF the newest wind turbines in Pomeroy stand are now reaping energy from the wind. The towers and turbines wereinstalled in 2011. There are now 170 turbines in the Pomeroy area, owned and operated by midamerican energy.


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By DARCYDOUGHERTY

MAULSBYFarm News staff writerIDA GROVE — As

Iowa’s grape and wine in-dustry begins to mature,some growers have left thebusiness, while others areexpanding the scale or scopeof their operation. Dr. JohnSinnott and his wife, Lenee,of Ida Grove, plan to taketheir vineyard to the nextlevel by opening their OldTown Winery to the publicon Memorial Day weekend.

“We’re always learningsomething new in this busi-ness,” said John Sinnott, 70,a semi-retired family physi-cian, who established hisvineyard in 2006 and built a64-by-30-foot winery in2009.

“Our goal is to produceonly native Iowa wines fromour own grapes.”

Sinnott, who started hisvineyard with 100 vines,now tends 1,600 vines onnearly 3 acres that wereonce a pasture south of thehouse. The challenges ofgrowing grapes have takenmany forms, said Sinnott,who grew up on a farm inMonroe County.

Some misguided advicefrom an acquaintance whosaid nets weren’t necessaryto ward off birds cost theSinnotts their whole cropone year. In May 2010, aMother’s Day freeze de-stroyed 80 percent of theirgrapes, which were juststarting to blossom.

The couple persevered,however, and learned howto grow wine grapes suc-cessfully on the sloping ter-rain at their acreage, whichis located on the northeast

edge of Ida Grove. Today,they grow nine varieties ofcold-hardy grapes, includ-ing Prairie Star, La Cres-cent, Petite Pearl, Fron-tenac, Marquette and others.

Proper pruning is a vitalskill to master, since it dic-tates how big the vineyard’scrop load will be, the Sin-notts said, who are members

of the Northwest IowaGrape Growers Associationand Western Iowa GrapeGrowers Association.

While the Sinnotts handlenearly all the work in theirvineyard, with some helpfrom family and friends,grape-growing is muchmore labor intensive thanthey anticipated.

“Still, I enjoy the workand enjoy being outdoors,”Sinnott said.

Growers embraceeconomies of scale

A good vineyard operatorwill put in 150 to 200 hoursof labor per acre per year,said Dr. Mike White, anIowa State University Ex-tension viticulture field spe-cialist, who noted that avineyard also requires a sig-nificant investment of mon-ey and management. If avineyard operator doeseverything right, he or she

might net $1,000 to $1,500per acre, he added.

These realities haveprompted some grape grow-ers to pursue other opportu-nities. “Many of the firstpeople in this business gotin when they were 45 to 60years old,” White said. “Tenyears later, they have foundout there are much better us-es of their time. A grapevineyard is extremely man-agement intensive, andmany of the initial people inthis industry did not havethe background or desire to

climb the steep learningcurve.”

Some of the most suc-cessful grape growers inIowa have come from anagricultural background,added White, who beganobserving this phenomenonaround 2005 when moreconventional farmers beganentering the business. “Inmany cases, the kids saidthey would stay around thefarm after college if momand dad would consider a

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Iowa’s grape industry continues to evolveGrowersembraceeconomyof scale

S ee GRAPES , Page 7H

Dr. John Sinnott checks on the wine in these glass carboys in his winery, which he built in 2009 on his acreage. sinnott, a semi-retired physician, and wife Lenee, of Ida Grove, plan to take their vineyard to the next level by opening their old Town winery to thepublic on memorial Day weekend. The sinnotts tend about 1,600 vines on nearly 3 acres of land that was once a pasture south of theirhouse.

-Messenger photo by Darcy Dougherty Maulsby


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PROGRESS 2012

vineyard and/or winery in the future. These conventionalfarmers are becoming our best grape growers.”

Today, the average commercial vineyard in Iowa isaround four acres, although many growers are finding theyneed at least five to 10 acres to make the effort worthwhile.“One would need to have at least 20 to 30 acres for a fullsingle income,” said White, who noted that there are morethan 300 vineyards covering approximately 1,200 acres inIowa.

Economies of scale are also beginning to reshape the in-dustry. Seasoned growers are starting to purchase equipmentto cut their labor, said White, who noted that there are sixmechanical grape harvesters in Iowa now.

A few growers are installing cold storage facilities so theycan store and transport grapes longer distances. In addition,some of the vineyards, including Old Town in Ida Grove, arestarting their own wineries.

Wine boosts Iowa’s economyAt the end of 2011, there were 95 federal- and state-li-

censed wineries in Iowa. Many of these operations continueto produce higher quality wines, said White. The new IowaVintners Quality Alliance is helping the industry markethigh quality wines of distinct styles representing Iowa’sgrowing regions.

Demand for Iowa wines is growing, White said. Iowawineries have approximately 7 percent of the market shareof wine sales in Iowa. “Though the average prices of Iowawine typically range from $10 to $16 a bottle, sales contin-ue to climb, and our national and international awards con-tinue to increase, as well.”

This is good for economic development, according to a2008 ISU report, which documented the economic impactof wine and vineyards on the Iowa economy totals $234.3million. “It’s exciting to be part of this up-and-coming in-dustry, which increases tourism and offers a fun way to pro-mote Iowa’s rural communities,” Lenee Sinnott said.

Learn moreFor more information on Iowa wineries, visit the Iowa

Wine & Beer Promotion Board at: www.iowawineand-beer.com. To learn more about the Midwest Grape and WineIndustry Institute at Iowa State University, visit: www.ex-tension.iastate.edu/Wine. For more information on OldTown Winery, log onto: www.oldtownwines.com.

Contact darcy dougherty maulsby at [email protected]

Grapes Continued from Page 6H

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Dr. John anD Lenee Sinnott raise nine varieties of cold-hardy grapes at their vineyard near ida grove.

-Messenger photo by Darcy Dougherty Maulsby


By LARRY KERSHNERFarm News news editorA thus-far undisclosed

quarter-section in O’BrienCounty, is being negotiatedas the future site for RockIsland Clean Lines’ con-verter station. This stationwill be the official “onramp” for a planned 3,500-megawatt direct currenttransmission line that willstretch 500 miles acrossIowa, much of it throughnorth and north centralIowa.

During June 2011, CaryKottler, project develop-ment manager, and engi-neers met with Iowa localgoverning officials and pri-vate residents who couldpotentially have the linescross their jurisdictions andproperties.

Kottler said the study cor-ridor for the line has beendetermined, and as of Feb.8, “we’re on track to file theroute later this year.”

He said company offi-cials have been doing “out-reach meetings” with localtaxing entities likely to beaffected by the new trans-mission line.

Clean Lines is expectedto hold another slate of pub-lic hearings on the projectduring the second half of2012.

Kottler said the companywill be buying a 200-footright of way for erectingpoles, as well as compensat-ing farmers and otherlandowners for field disrup-tions, broken tiles and croplosses during construction.

Kottler acknowledgedthat right-of-way agree-ments will need to be se-cured along the final route.He said condemnation pro-ceedings could be part ofthe process.

“But that would be ourlast resort,” he said.

He explained that con-demnation could be used toclean up unclear landowner-ship or properties locked inprobate action.

A whole slate of federal,state and local permits willalso be required, especiallyif the line should cross wa-terways. Clean Lines Ener-gy Partners, based in Hous-ton, Texas, the parent com-pany of the Rock IslandClean Lines, is also workingout potential interconnectagreements.

Whether the right-of-waypurchases will be one-timelump sum payments or an-nuities has not been deter-mined.

“We won’t know untilwe’ve presented to the IowaUtility Board,” he said.

CLEP, Kottler said, is de-termined to create as littledisturbance on the land aspossible while creating thetransmission system, prefer-ring to follow section lines,railroad right-of-ways andwaterways, wildlife refuges,endangered habitats andrecreational areas.

He said they will be seek-ing to avoid as many resi-dential areas as possible.

Hans Detweiler, directorof development for CLEP,said the closer residents

lived to the start of the line,which will be sited inO’Brien County, the moreinterest has been shown dueto the potential of new windfarms cropping up to feedthe new line.

When asked about resi-dents’ perception of thehealth impact on livestockand humans living close tothe high-voltage line. De-tweiler said that most healthissues are from alternatecurrent lines. However, di-rect current lines are differ-ent, citing studies from theWorld Health Organization,International Agency forResearch on Cancer and theNational Radiological Pro-tection Board, stating thereare no adverse impacts onanimals or people living un-der or near direct currentlines.

Harlan Hansen, JohnChristianson and CarlMatthes, members of theHumboldt County Board ofSupervisors, said they sawthe potential influx of taxincome as a boon to thecounty’s general fund.

If there were 20 miles ofline through the county, at$7,000 per mile, it wouldgarner a $140,000 annualshot in the arm for the coun-ty.

Mattes said if the incomeis classified as an ag tax, itwill lead to lowering thetaxable value of ag land,bringing no additional rev-enue benefit to the county.

+ +

PROGRESS 2012

By DAVE DEVALOISFarm News staff writerAMES — Dow Agro-

Sciences opened a new cen-tral Iowa field research cen-ter here in summer 2011 toaccommodate its growingcorn and soybean breedingprograms.

In a news release, Agro-Sciences, a subsidiary of theDow Chemical Co., said thefacility is built with furtherexpansion in mind. Thecompany purchased 150acres northwest of Ames forits 17,500-square-foot of-fice/seed lab building and

approximately 15,300-square-foot equipment stor-age building.

“Dow AgroSciences pre-viously had a location inHuxley and wanted to stayin central Iowa,” saidRobyn Heine, Dow Agro-Sciences global public af-fairs leader. “We werelooking for a new locationto expand due to existingspace limitations at ourformer site in Huxley andwe were looking for somefarmland as well.”

AgroSciences has new footprint in Ames

Dow AgriScienceS new fAcility in ames is a 17,500-square-foot seed lab with office spaces. Ithouses more than 20 full-time employees.

-Messenger/Farm News photo by Dave DeValois

S ee DOW, Page 9H

Field research facility willaccommodate soybean,corn breeding programs

By the

numbersIf the proposed Rock

Island Clean Line proj-ect comes to fruition itcould create:

∫ Three states seeingwind energy growth —Iowa, Nebraska andSouth Dakota.

∫ 500 miles of newtransmission line acrossIowa.

∫ 3,500 megawattsof power being generat-ed and transmittedacross the state.

∫ 5,000 short-termjobs, with 500 becom-ing permanent.

∫ 1.4 million house-holds powered in 14eastern markets — Illi-nois, Indiana, Michigan,Ohio, Kentucky, Ten-nessee, Maryland, Vir-ginia, West Virginia,North Carolina,Delaware, New Jerseyand Washington, D.C.

∫ $7 billion in newelectric generation in-vestments.

∫ 10 million tons ofcarbon removed fromthe environment annual-ly, equal to 1.9 millioncars taken off the road.

Data gathered fromthe U.S. Energy Infor-mation Administration.Actual benefits may bealtered as the projectprogresses.

Iowa to exportwind energyNegotiations continuefor Clean Line Project

S ee CLEP, Page 9H


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However, if it goes into the generalfund, as wind turbine taxes do, “then thatwill help our budget.”

The supervisory trio, last June, saidthere has been no discussion if the countywould share the new revenue with citiesand school districts, or if it would apply itto infrastructure improvements.

A need to move powerAccording to Detweiler, the intent is to

spur additional wind turbine farm creationin northwest Iowa, northeast Nebraska andsouthwest South Dakota.

CLEP’s website — www.clealineener-gy.com — said there is a potential for erect-ing as many as 2,000 new wind turbines, cre-ating 3,500 megawatts of power, whichwould then be transferred from near SiouxCity to Rock Island, Ill. From there, it wouldbe used to supply power to Chicago and far-ther east. Potentially, there are 14 states thatcould benefit from the extra electricity.

“The HVDC line can transmit enoughelectricity to power 1.4 million house-holds,” Detweiler said. “That’s more thanMinnesota uses in a year.”

In 2009, Iowa’s wind energy capabili-ties grew by 10,000 megawatts. This proj-ect would be roughly 25 percent of thatsingle year’s advance, he added.

Kottler said that the $1.7 billion trans-mission line, could spur an additional $7billion in wind turbine investments withinthe three states, although CLEP would notbe involved in creating those farms. Hesaid there is the potential for a substantial

number of the turbines to be erected inNorthwest Iowa.

Detweiler said the entire project is afour-phase, six-year development plan.

Michael Skelly, president of CLEP, saidthat Midwest wind energy generation grewby 40 percent for each of the past severalyears, until construction of turbines cometo a near halt in 2010.

“There’s plenty of wind out there,”Skelly said, there’s just not an efficienttransmission system. “We need to get theharvested wind energy to places that needit.” Concerning the 3,500 megawatts ofnew generation, he added, “This is a sig-nificant amount of power.”

Kottler said once power is uploaded on-to the line, it will be transported virtuallyinstantaneously to Rock Island, Ill., formarkets farther east.

Contact Larry Kersten at (515) 573-2141, ext.

453, or [email protected]

CLEP Continued from Page 8H

The expansion will al-low AgroSciences cornand soybean breeding pro-grams to expand its testingand breeding capacity,which expected to doubleover the next three years.

The Ames site has morethan 20 full-time employ-ees, plus a large number ofseasonal and contract em-ployees and is expected togrow in the near future.

“Our plant breeding ef-forts in corn and soybeansare targeted to developand evaluate products tosatisfy the needs of grow-ers in Iowa and otherneighboring states,” saidMarcelo Queijo, siteleader of Dow Agro-Sciences’ Ames facility.

Heine said DowAgro-Science has “test plots onour property adjacent toour new facilities in Ames

and in the surroundingarea. We also have testplots across Iowa that ourAmes facility conducts inits research program.”

The company expectsgrowth due to increaseddemand for its products,she said.

“The new facilities arebuilt with the latest state-of-the-art equipment inseed processing and farmirrigation,” Queijo said.“Coupled with this invest-ment, Dow AgroScienceshas also acquired plantingand harvesting equipmentto help meet our stricttimelines and allow us toaccelerate the launch ofour newest products andtechnologies to satisfy theneeds of our growers.”

“This expansion is oneof many projects we areengaged in around the

globe to bring farmers thebest technologies and thebest agronomic traits tomeet their needs,” saidDan Kittle, vice presidentof research and develop-ment at AgroSciences.

Using breeding andagricultural biotechnolo-gy, Dow AgroSciencescontinues to work towarddiscovery and develop-ment of traits for insect re-sistance, herbicide toler-ance, oil quality, enhancedmeal quality, drought tol-erance and nitrogen uti-lization.

“The company’s biolog-ical solutions pipelinedemonstrates diverse andinnovative product candi-dates with market poten-tial around the world,”Heine said.

Contact dave deValois [email protected].

Dow Continued from Page 8H

“The HVDC line can

transmit enough energy

to power 1.4 million

households.”— Hans Detweiler

Director of development for CLEP


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mandates extended.If the issue is not resolved by summer, King said, it

will lie dormant in Washington during the presidentialelection season.

When asked how the ethanol industry has determinedto survive without the blender’s credit and why biodieselstill needs it, Campbell said the energy value in veg-etable oils “is very close. We in the biodiesel industryare surviving because of the RFS, but it would be betterto have the credits.”

He said that biodiesel plants can’t manufacture biofu-el “until someone feeds a chicken or a pig. We crush thebean for meal and extract the oil for biodiesel.”

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Credit Continued from Page 4H

By LARRY KERSHNERFarm News staff writer

AGP’s improved harbor in Ab-erdeen, Wash., is in operation, said JohnCampbell, senior vice president forAGP Cooperative.

“We’re just now loading the first ves-sels with the new conveyances,” Camp-bell said.

AGP, in cooperation with the Port ofGray’s Harbor and Puget Sound & Pa-

cific Railroad, created a deep-water portfacility for shipping ag products to Pa-cific Rim countries.

“We’ve been upgrading our speedand space,” Campbell said.

“With larger storage spaces that areunder cover, he said the company cankeep off-loading trains, even if a ship islate, getting the trains turned around andheading back.

A continuous flow of unit trains can

now bring ag products from the Mid-west and Plains States to Gray’s Harborfor shipment to primarily Asian mar-kets.

Before the improvements, AGP wasloading mostly meal, Campbell said, butnow AGP has the capability to load oth-er commodities for overseas markets.

Gray’s Harbor is the only deep waterport along the U.S. West Coast.

The closest deep water facility is inthe Gulf of Mexico.

Contact Larry Kershner at (515) 573-2141, ext. 453 or at [email protected]

Improved Gary’s Harbor isin operation, says CampbellagP has more commodities opportunities


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PROGRESS 2012

By LARRY KERSHNERFarm News news editorFarmland values in 2011

continued a meteoric rise,increasing at rates not seensince the 1970s. A pair of2011 land value surveys re-ported a 25 percent jump inIowa ag land from March2010 to March 2011 and a32 percent rise from De-cember 2010 to December2011.

Soaring farmland valueshave led people to askwhether or not farmland ison a speculative “bubble”and due for a price correc-tion as occurred in the mid-1980s.

Mike Duffy, an IowaState University ag econo-mist, who conducts his ownannual land value survey,said that by comparing con-ditions four decades ago andnow, he does not think a1980-like crisis is loomingfor agriculture.

He said the rapid increas-es in land values during the1970s were followed byconsiderable personal, fi-nancial and social disruptionwhen the values collapsed inthe 1980s.

“The 1970s was a trulyunique and unprecedentedperiod in U.S. history,”Duffy wrote in an April2011 evaluation. “Startingin 1972, real farmland val-ues in the United States rosemore than 7 percent a yearfor 10 consecutive years. Incomparison, real land valuesin the United States rose 3.2percent annually from 2005to 2010 as farmland valuesfell during the recession in2009”

Since April 2010, farm-land values have rebounded,yet questions regarding thesustainability of these ele-

vated land values remain.Duffy said there are strongeconomic fundamentals —rising farm incomes and a

limited number of farms forsale — appear to be drivingrecent land price gains.

In addition, much of the

farmland is owned by olderfarmers with little intent tosell. Farmland values willbe shaped by economic re-

turns and the highly volatilemarkets make the futurepath of farmland values un-certain.

In short, Duffy said he’scertain there is not a bubble

Farmland values continue record rise

iowa State university released these statistics on 2011 iowa land values.

-Submitted photo

iSu economist duffy: ‘i’m not thinking there’s a bubble’

S ee IS U, Page 14H


waiting to burst. He saidthe gains are solid andfarmers are paying mostlycash for their high-pricedacres with the goal of long-term ownership, not asspeculators.

“They’re financing verylittle of it,” Duffy said.“That’s why I’m not think-ing there’s bubble.”

Still, Duffy thinks farmland values may be show-ing a trend of leveling off.“Prices are not quite asgood and input costs arehigher,” he said.

O’Brien, Sioux leadIowa

O’Brien County leadsthe state on average farmland values at $9,513 peracre as of December 2011,up from the $7,148 a yearearlier. Its neighbor, SiouxCounty, is a close second at$9,419 per acre in 2011,up from $7,048 in 2010.Both counties led the stateduring 2010.

Bruce Brock, of BrockAuction Co., based in LeMars, credits those coun-ties’ leading roles to their

diversity of crop land andopportunities for market-ing.

He said biofuel plants,plus cattle, swine, poultry“and a large dairy industry”offers northwest Iowa graingrowers a wide choice ofmarkets.

“They have a lot of op-tions,” Brock said, and ithas led to a build up of eq-uity with profitable mar-kets and that’s being putback into the land.”

Driving values upThere are several rea-

sons for today’s rising land

values, said Duffy and oth-er regional land brokers.

Most are based on soundeconomic fundamentals.Over the past decade, realnet farm incomes have av-eraged almost $70 billionper year, more than 10 per-cent above the 1990s aver-age. The expectation is thatfarm incomes will remainhigh for at least the nextyear or so. In addition,farm wealth is on the rise asfarmers appear to not beusing as much debt as wasused in the 1970s.

In fact, it appears thatfarmers are using at least aportion of the newfound in-come and wealth to pay offdebt at a near record pace,Duffy said. “Further evi-dence that market disci-pline still exists is thatfarmland values fell whenfarm incomes dropped in2009.

“In the 1970s, farmlandvalues continued to riseeven as farm income con-tracted.”

Another driver of values,Duffy said, is that fewerfarms and acres are comingto the auction block, whiledemand for land remainshigh.

“It’s a strong market,”said Bob Flynn, of FlynnReal Estate Inc., of Web-ster City. “They aren’tmaking any more (farmacres), but the demand forthem is there.” He said a re-cent local sale saw a farmerspend $7,500 for each of250 acres..

If commodity prices stayup, Flynn said, he expectsto see land values continueto rise.

“But if (commodityprices) comes down, itwon’t happen in 2012.”When it does, he said of agland, “it recovers fasterthan residential.”

Flynn said the HamiltonCounty area is a solidfarm land market and saidthe local economy bene-fits from a healthy agri-culture.

“It pulls us all up a littlebit,” he said. “Farmers arebuying trucks and jewelry.”

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ISU Continued from Page 13H

At $9,513 per Acre AverAge, fArm lAnd in o’brien County leads the state for the second year running. Last year, the county’s agland averaged $7,148. one land broker said the diversity of ag enterprises in the county, has made crop production acres highly valuable.

-Messenger/Farm News photo by Robyn Kruger

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S ee IS U, Page 15H


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PROGRESS 2012

Some instabilityStill, some of the recent

increases may be due tomore transitory factors thatare not sustainable, Duffysaid.

“For example, we are inunprecedented times withrespect to the monetary andfiscal policies,” he said.

“These policy decisionswere made as a result of thesevere economic downturn.But, the policies encourageborrowing and they also in-crease the attractiveness ofmore risky investments.

”In the case of interestrates, in the fourth quarterof 2010, both the Chicagoand the Kansas City Feder-al Reserve banks reportedthe lowest real estate inter-est rates in their data series.Lower interest rates makeborrowing cheaper, but al-so decrease the rate of re-turn in alternative invest-ments. “Lower returns else-where in the economy in-crease the demand forfarmland,” Duffy said.

The U.S. Department ofAgriculture reports that in-flation-adjusted farm realestate debt has declinedsince 2008. When farmersdo take on new debt, theredoesn’t appear to be an ir-rational exuberance, Duffysaid.

“With interest rateslow,” he said, “the demandfor farmland exceeding thesupply of land for sale andwith strong commodityprices, land values shouldcontinue to increase or atleast maintain their currentlevels for the foreseeablefuture.”

Who’s buying?Another issue surround-

ing land values is thechanging nature of owner-ship. Who owns the farmwill influence how it willbe farmed, Duffy said.There are two trends inland ownership that war-rant consideration —who’s buying and the agingland owner population.

Midwest data shows thatexisting farmers remain theprimary purchasers offarmland, Duffy wrote in

2011. “As a result, farm-land is purchased primarilyby existing farmers. InIowa, during 2010, 70 per-cent of the land was pur-chased by existing farmers.In Illinois, 56 percent ofthe buyers were farmers.Other states show similartrends.

”Although farmers rep-resent the majority of pur-chasers in many states, therelative percentage of landbought by farmers had de-creased, while investor pur-chases have increased pres-suring the market.

Brock said that non-farminvestors “know what we(in Iowa) have here.”Stocks and bonds interestrates are not as attractive asIowa farmland.

“With the worldwide

growth in food demand,”Brock said, “and instantcommunications, the worldknows we can produce pro-tein. And the world is de-manding that now.”

Brock thinks that landvalues will continue to fol-low commodity prices. “Ifthere’s a big uptick in com-modity prices, there couldbe some increases,” hesaid.

Even so, he believes itwould be unhealthy for theag economy if valuesjumped 30 percent annual-ly.

From 2000 to 2007, thepercentage of Iowa farm-land purchased by farmersfell below 60 percent, com-pared to 80 percent in theearly 1990s. At the sametime, the percentage of land

purchased by what wereclassified as investors rosefrom less than 20 percentin the early 1990s to al-most 40 percent in the mid-2000s.

“There does not appearto be any increase in theamount of land being soldon the market,” Duffy said,“at least not in Iowa.

“The preliminary re-sults of the lead study ex-amining Iowa land salesdata shows 1.5 percent ofIowa’s cropland was soldin 1990, 1.9 percent wassold in 2005, 1.3 percentsold in 2009 and 1.4 per-cent sold in 2010,” hesaid.

These numbers, Duffysaid, led him to think thatdespite sharp land value in-creases in 2007, rising land

values had little effect onIowa landowner plans.When asked about the im-pact of rising land values,80 percent of the ownerssaid higher farmland valueswould have no impact ontheir plans regarding keep-ing or selling their land.

“Moreover, 54 percentsaid higher farmland val-ues would have no impacton land purchase plans,while another 43 percentsaid they were less likelyto buy land. Will thischange of ownership in-crease the amount of landfor sale and have a damp-ening impact on land val-ues? No one knows forsure,” Duffy said, but theevidence suggests thatthere will not be a largeincrease in the amount of

land for sale, at least notin the foreseeable future.

It appears that the aginglandowners will transferthe land primarily to theirfamilies and not gothrough the market. Whatis not known is what thenext generation of ownerswill do with the land. Theindications are that thefirst inheritors will keepthe land, but what the sub-sequent generations willdo with the land remainsto be seen.

“Some of this land (be-ing sold) is inherited and(heirs) are moving on,”Duffy said. “Sentimentalvalue has its price and theprices are starting to hit it.”

Contact Larry Kershner at(515) 573-2141, ext. 453, [email protected].

ISU Continued from Page 14H

EstimatEs of average dollar value per acre are shown for high-, medium- and low-grade farmland on nov. 11, 2011.

-Submitted graphic


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PROGRESS 2012

Corn oil: A win-win situation

By CLAYTON RYEFarm News staff writerMASON CITY — When

an ethanol plant has extract-ed what it needs from eachbushel of corn for theethanol process, there’s 18pounds remaining fromthose 55 pounds that com-prised the bushel.

Those 18 pounds arecalled distiller’s driedgrains, or simplyDDGs.Within those 18pounds is a half-pound ofcorn oil. Until recently thecorn oil was left in theDDGs where it was a com-ponent of livestock feed,the end use of DDGs.In re-cent months ethanol plants

have begun removing thecorn oil and selling it as acompetitor to soybean andpalm oil. It has found favorwith biodiesel plants be-cause the oil represents asteady and abundant stockat a competitive price.Ethanol plants are seekingadditional sources of in-come as the industry be-comes a mature businesswith plants buying corn andselling ethanol andDDGs.Profitability ofethanol plants was strongwhen 2011 ended, but mar-gins have become paperthin in 2012.

Trains and Trucks at the entrance of Golden Grain energyís plant entrance provide a steady streamof traffic throughout the day.

-Messenger/Farm News photo by Clayton Rye

New revenue forethanol, affordablestock for biodiesel

S ee OIL, Page 17H


“Ethanol profitability isvery low right now,” saidWalt Wendland, chief ex-ecutive officer of GoldenGrain Energy, an ethanolplant in Mason City.

Wendland identified thereasons for the sudden dropin ethanol plant profitabili-ty as:

∫ Corn prices rebound-ed in December whileethanol prices did not.

∫ Export markets van-ished.

∫ Gasoline demandtrended lower with domes-tic ethanol demand movingdown accordingly.

∫ Ethanol inventoriesincreased hitting what isknown as the “blender’swall” when supplies equaldemand at the 10 percentblend.

“We have record inven-tories of ethanol. We needE15 and need it now,” saidWendland

With the expiration ofthe blender’s credit, no onewanted to own ethanol, hesaid.

The ethanol industry’sgross margins as 2011ended in December was$1.30 per gallon, Wend-land said, the best marginsince 2005.

Weeks later, in earlyFebruary, Wendland saidGolden Grain’s gross mar-gin is 22 cents a gall —even lower than the low of2008.

Corn oil sales are adding5 to 6 cents of those 22cents of margin for GoldenGrain Energy.

“In these economictimes, corn oil can be thedifference between profitand loss,” Wendland said.He estimated that corn oiladds an extra 15 cents ofvalue to a bushel of corn.

Golden Grain Energyhas been extracting corn oilfrom DDGs since spring2009.

The equipment to re-move corn oil was placedin the syrup stream and canbe turned off or on withoutinterrupting the flow of theethanol process, he ex-plained.

Golden Grain Energy

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PROGRESS 2012

Oil Continued from Page 16H

Deb ausTin, a golden grain energy employee, examines one of the two centrifuges placed in the ethanol stream to remove corn oil.

-Messenger/Farm News photos by Clayton Rye

The Manly TerMinal handles various commodities from ethanol to acid and more. railcars are both loaded and unloaded at sev-eral sites at the facility.

S ee OIL, Page 18H

friday, feb . 24, 2011/Sunday, feb. 26, 2011 www.farm-news.com farm newS / The meSSenger, forT dodge, iowa 17h

produces 2 million poundsof corn oil monthly, whichis approximately 25,000gallons, and can store up to40,000 gallons of corn oilon its site.

Wendland foresees thepotential for much of Gold-en Grain’s corn oil travel-ing a few miles away toSoy Energy LLC, whichpurchased and reopened in2011, the former FreedomFuels plant.

After sitting idle, theplant was bought by agroup from Marcus, innorthwest Iowa, and re-cently reopened as Soy En-ergy LLC.

At capacity, Wendlandsaid, Soy Energy LLC willuse 87,000 gallons of oildaily from various sourcesin the manufacturing ofbiodiesel.

One of POET Biorefin-ing’s 27 locations is 20miles northwest of Mason

City at Hanlontown. KellyHansen is plant manager.

Hansen said the equip-ment to remove corn oilwas installed last fall andafter two months of con-struction, the plant begancollecting corn oil on Dec.19, 2011, and its first semiload of corn oil wasshipped two days later..

Hanlontown was thefifth POET facility to ex-tract corn oil from DDGs.Eventually, all 27 POETfacilities, scattered acrossseven states, will beequipped for corn oil re-trieval, Hansen said.

The equipment for cornoil collection is a “fairlysmall footprint” in the plantand a “small expense inconstruction,” he said.“The only other require-ment was extensive train-ing for the plant operatorsto maintain quality.

“It was a tremendousamount of training for theoperators as it is a very au-tomated process.”

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Hansen said POET pro-motes corn oil as “renew-

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PROGRESS 2012


Walt Wendland is president and chief executive officer of Golden Grain energy of mason City.


SIOUX FALLS, S.D. – POET is upping its stake in thedairy feed market with the introduction of Dakota GoldLow Fat dried distiller’s grains with solubles, which re-search is showing can be fed to dairy cattle at a higher in-clusion rate than traditional DDGS.

Dakota Gold Low Fat DDGS have a 5 percent fat content,which allows for higher inclusion rates in dairy cows. It is anew opportunity for dairy operations that have had to limitDDGS use in the past because DDGS’ fat content can causemilk fat depression issues, said Dr. Kip Karges, technicalservices and research director at POET Nutrition.

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S ee OIL Page 19H

S ee DAIRY, Page 19H


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PROGRESS 2012

able energy from a renew-able source, the DDGs.”

The removal of the oilalters the quality of DDGsas livestock feed, Hansensaid, lowering fat content.Dairy cattle fare better withthe lower fat content feed,Hansen said.

POET has the capabilityto tailor its DDGs to cus-tomer specifications on fatcontent, according towhether it will be fed tocattle, hogs or poultry.

The bulk of POET’s cornoil is sold to the biodieselmarket.

POET Biorefining islooking to the future withfurther improvements in itscorn oil technology and hasplans to produce a food-grade quality of corn oil.

Once loaded onto semitrucks, much of the corn oilfrom Golden Grain Energyand POET’s Hanlontownfacility ends up at the Man-ly Terminal where it isloaded on rail cars.

The Manly Terminal is

just north of Manly, inWorth County, 10 milesnorth of Mason City and 10miles east of Hanlontown.Its president is Lee Kiewi-et.

Kiewiet said Manly Ter-minal loads rail cars withcorn oil at the rate of 20 to75 cars a month, with 50being an average monthlyrate.

He anticipates that Man-ly Terminal will eventuallybe loading railcars withcorn oil at the rate of 100cars per month.

Corn oil is brought in tothe Manly Terminal fromethanol plants within a150-mile radius of Manly.

Once loaded with cornoil, the railcars are destinedfor the state of Mississippi,and points along the GulfCoast, where the majorityof it goes to biodiesel man-ufacture and the rest fed tolivestock, said Kiewiet.

Contact Clayton rye at

[email protected].


With volatile ingredientcosts, Dakota Gold LFDDGS are one of the mostcost-effective feed ingre-dients available today, re-placing more expensiveingredient sources in dairyrations without giving upperformance.

By feeding higher inclu-sion rates one could seesavings approaching or insome cases exceeding 10cents per cow per day —this is real money returnedto the producers’ bottomline, Karges said.

General research intothe subject has shown thatincreasing concentrationsof low-fat DDGS havecorrelated to increasing ef-ficiency of milk produc-tion.

“When feeding regularDDGS you really have tolimit feeds with high lev-els of unsaturated fattyacids and may cause limi-tations in formulation pro-cedures,” said PaulKononoff, a dairy nutri-

tion specialist at the Uni-versity of Nebraska in Lin-coln. “The reduction in fatin low fat DDGS allowsfor higher inclusion of theco-product without theworries of milk fat depres-sion.”

Kononoff and others atthe University of Nebraskahave performed trials forPOET and will be releas-ing data to the public thissummer.

A deliberate researchand development processwas followed in bringingDakota Gold Low FatDDGS to market. The op-tion is possible because ofPOET’s Voila corn oilproduction, which re-moves oil from DDGS.The resulting product willcontinued to be researchedto find new ways in whichDDGS, the second-largesttraded feed ingredient onthe market, can be used toproduce protein for humanconsumption, a POET re-lease said.

Dairy Continued from Page 18H

Golden Grain enerGy is a 100-million-gallonper year ethanol plant located on the south side ofmason City. it is owned by 800 members and pur-chases 40 million bushels of corn annually.



By DAVE DEVALOISFarm News staff writerDALLAS CENTER —

From Pioneer Hi-Bred’s per-spective, the new 50,000-square-foot research centernearing completion here isjust another step in the hybridseed giant’s goal of helpingto feed the booming popula-tion of the world.

Pioneer’s new corn breed-ing and corn and soybeanproduct testing at its new re-search center will add an as-yet-undetermined number ofjobs to the 160 employees al-ready at the company’s cam-pus of buildings in DallasCenter, where Pioneer hashad operations since 2004.

The new center is expectedto open later this spring. TheDallas Center location cur-rently houses a global molec-ular marker lab, laser-assistedseed selection, and corn andsoybean product develop-ment.

The new Dallas Center re-search facility is one of the

many investments Pioneer ismaking to expand its researchin Iowa. The company isbuilding a new $40 millionresearch facility in Johnstonthat will include space for400 new positions and is inthe midst of a $32 milliongreenhouse and research fa-cility renovation and expan-sion project that will includespace for 100 new full-timepositions by the end of 2014.

Improvement in corn hy-brids will be targeted forfarmers in western and cen-tral Iowa, eastern Nebraskaand northwest Missouri, ac-cording to a Pioneer release.

“As we have expanded thesize and scope of our productdevelopment efforts, we haveoutgrown the size of our ex-isting facility,” John Soper,Pioneer’s vice president ofcrop genetics research anddevelopment, said in a re-lease. “This expansion willenable us to develop im-proved products from a state-of-the-art, technology-en-

abled facility.”While these numbers are

certainly significant for Dal-las Center and its tax base,

the facility is one small steptoward fulfilling big world-

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Corn, soybean seed, farm chemicals, native grass seed, STIHL & TORO sales

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PROGRESS 2012

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Pioneercontinuesexpansions

Workers are nearing completion of a new 50,000-square-foot Pioneer corn breeding research center andwarehouse in Dallas Center. The new building is expected to open late this spring and will add to the 160Pioneer workers now employed in Dallas Center.


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Dallas Center, Johnston

S ee PIONEER, Page


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wide goals for Pioneer.“This investment in local

product development andtesting ... is one of the manyinvestments we are makingto deliver innovative solu-tions to farmers locally andhelp to respond to the chal-lenges of feeding a growingpopulation,” Soper said.

DuPont, Pioneer’s parentcompany, announced inFebruary, that it is establish-

ing specific, measurablegoals toward improvingfood security around theworld by 2020 including:

∫ Innovation to feed theworld — investing $10 bil-lion in research and develop-ment and introducing 4,000new products centered onproducing more food; en-hancing nutrition, food andagriculture sustainabilityand safety; boosting food

availability and shelf life,and reducing waste.

∫ Improving rural com-munities. Improving thelivelihoods of at least 3 mil-lion farmers and their ruralcommunities through target-ed collaboration and invest-ments that strengthen agri-cultural systems and makefood more available, nutri-tious and culturally appro-priate. This is in addition to

the work already being doneto enhance the lives of hun-dreds of millions of farmersthrough DuPont’s normalbusiness practices.

“No one company, coun-try or non-profit organiza-tion can meet the challengeof feeding the world alone,”said Ellen Kullman,Dupont’s chief executive of-ficer. “But each of us cancommit to doing our part

and hold ourselves account-able to make a meaningfulcontribution to this globalchallenge. “Establishingspecific, measurable goalsfor what we can do to ad-dress that challenge is key toturning talk into results.”

The new Dallas Centerfacility’s contributions tothose worldwide goals startwith improving plant genet-ics for Iowa farmers.

“People look at seed cornand don’t necessarily thinkof all that goes into it,” saidJulie Kenney, a communica-tions manager for Pioneer inJohnston. “We’re workingto have better germplasm,better base genetics and bet-ter traits to protect thoseplants.” Kenney said.

Contact Dave DeValois [email protected]

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11664444 222200TTHH SSTTRREEEETT •• FFOORRTT DDOODDGGEE A forest of trees cradles this unique 3 BR, 2 bath country home on 7.86 acres less than 5 miles west of Fort Dodge... wood floors, fireplaces, efficient kitchen highlighted by antique accents, wooded views from every room including the main floor FR, greenhouse w/hot tub, full basement with workshop, double attached garage and 2 sheds. Now just $199,500.

MLS # 13206 Sandy Bushman 955-7633

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22881111 225500TTHH SSTT..,, DDUUNNCCOOMMBBEE This 5 BR brick home is located on a hard surface road 8 miles from Fort Dodge. New roof, paint, carpet, septic, & many other inprovements in 2011. 48 x 72 metal building, 34 x 50 barn with hay mound, 24 x 60 shop, 28 x 20 garage, all on 5 acres M/L. MLS # 13378 Jim Egemo 955-7636

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Acreage / Farm landFor SaleAcreage / Farm landFor Sale

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220 East State St. Algona, IA 50511

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Kossuth County • 80 Acre M/L, Portland Twp., Section 24,

79.2 Tillable Acres, 66.7 CSR Friday, March 2nd, 2012, 10:00 a.m. Auction Location: Burt Community Center Burt, IA Owners: Iva Heaney Trust

Palo Alto County • 77 Acre M/L, Fern Valley Twp., Section 14

75.1 Tillable Acres, 71.3 CSR Wednesday, March 7th, 2012, 10:00 a.m. Auction Location: New Whittemore Fire Station, Whittemore, IA Owners: Roger Struecker, Gary Struecker & Mike Struecker

Kossuth County • 73 Acre M/L, Prairie Twp., Section 7

69.67 Tillable Acres, 79.8 CSR Thursday, March 8th, 2012, 10:00 a.m. Auction Location: KC Hall 1501 E. Walnut Street, Algona, IA Owners: Eischen Family Trust

Kossuth County • 80 Acre M/L, Sherman Twp., 73.4 Cropland

3.3 Acres CRP, 76 CSR Saturday, March 3rd, 2012 , 10:00 a.m. Auction Location: Algona Public Library, Algona, IA Owners: Thill Family Farm

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PROGRESS 2012

Pioneer Continued from Page 20H


+ +

John Wells Fonda, IA

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Jeff Yeager Kamrar, IA

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PROGRESS 2012

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ALTON Hawke & Co. Ag. 800-657-4398

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MACEDONIA Keast Enterprises 800-480-2487

FORT DODGE Anderson Implement 515-547-2370

ROCKWELL CITY Haley Equipment 877-397-7600

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By KRISS NELSONFarm News staff writerGLIDDEN — With the

goals to improve trafficflow and make for a saferfacility, the NEW Coopera-tive location in Glidden iscurrently undergoing anextensive grain extensionproject.

Rick Brincks, locationmanager, said deconstruc-tion of two concrete struc-tures began in early De-cember 2011. The projectwill be complete for the2012 harvest delivery.

“Once harvest wasover,” Brincks said, “itgave us some time to emp-ty the concrete structureand finalize things with thecity and receive board ap-proval. Then deconstruc-tion began.”

Brincks said one of theconcrete structures wasbuilt during the 1920s andthe other during the 1950s.A feed fill and feed millload out was also takendown. A dryer was relocat-ed.

Metal scrap from the old

NEW Co-op upgrades Glidden elevator

Rick BRincks, glidden location manager at new Cooperative, stands near the deconstruction where two new 365,000 bushel binswill be erected. The co-op will have more storage space for the 2012 harvest season.

-Messenger/Farm News photo by Kriss Nelsom

Project toimprove trafficflow, fastergrain reception

S ee NEW, Page 24H


structures will be re-claimed, Brincks said, andconcrete will be ground upand used elsewhere, in-cluding at project plots.

When demolition andcleanup is completed, theconstruction of two365,000-bushel, 78 feet indiameter and 85 feet tall,steel grain bins will begin.

Brincks said three newauger legs, two for the dry-er and one for receivinggrain, and a new 15,000-bushel per hour receivingpit, are part of the newgrain extension project.

With the new additions,Brincks said NEW Co-opwill have the capability ofreceiving 25,000 bushelsper hour — an increase ofabout 10,000 bushels perhour.

The expansion will alsoincrease the location’s ca-pacity to 1.4 millionbushels, up from 1.2 mil-lion bushels previously.

In addition to increasedstorage capacity and ahigher receiving capacity,Brincks said one of themain benefits to this proj-ect will be the improvedtraffic pattern at the eleva-tor.

“Local producers arevery excited about the up-grades of the facility,” hesaid. “Not only will we be asafer facility, but we willhelp with the farmers’ effi-ciency and make them

more profitable with aquicker turn around, get-ting them back to the fieldfaster.”

The cooperative contin-ues to look to the future, asplenty of room will be leftfor the possibility of furtherexpansion.

“NEW Co-op tries tohave state of the art facili-ties, and the Glidden loca-tion was due,” saidBrincks. “This positionsNEW Co-op to be a com-petitor in the future andshows NEW’s commitmentin this area.”

Contact Kriss Nelson [email protected]

+ +

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PROGRESS 2012

NEW Continued from Page 23H

The former grain sTorage facilities at New Cooperative in Glidden wererazed during 2011 and new facilities will be up and ready for the 2012 harvest,according to rick brincks, location manager.

-Submitted photo

“Not only will we have a safer facility,

but we will help with the farmers’

efficiency and make them more profitable

with a quicker turn around.”—Rick Brincks

Glidden, NEW Cooperative manager


+ +


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PROGRESS 2012

By DARCY DOUGHERTY

MAULSBYFarm News staff writerLAKE CITY — Oppor-

tunities multiply as they areseized at Bowie Internation-al LLC, which has remainedtrue to its mobile veterinaryunit roots, while expandinginto new ventures, fromsports car kits to animalcontrol systems.

“The businesses we’veacquired recently werestrong companies before,and we’re making themeven better,” said Steve Sin-nard, 44, executive vicepresident of Bowie Interna-tional, which boasts morethan 50 years of fiberglassmanufacturing expertise.

The company’s historydates back to1960, whenBowie Manufacturing Inc.,was founded in Lake Cityby a local veterinarian. Dr.M.C. Bowie was frustratedby working out of his carwhen making veterinarycalls. Bowie Manufacturingbecame the first company tomanufacture a mobile vet-erinary clinic out of fiber-glass. The company, whichbecame known for its chas-sis-mounted units, brokenew ground again in 1969when it introduced vet unitsthat slipped into pickuptruck beds.

After Scranton Manufac-turing Co. purchased Bowiein 2007, the company grewfrom 15 employees to 35employees today.Theteam’s expertise in fiber-glass has allowed Bowie tomove into many new direc-tions in recent years, thanksto the acquisition of Hurri-cane Motorsports, whichproduces a replica 427 Co-bra kit car, and CustomFiberglass Coaches, whichsupplies animal controlunits.

Diversifying the compa-ny’s customer base has beenvital to Bowie as veterinary

medicine has changed, Sin-nard said. “There are fewerlarge-animal practitionerstoday, so it has made sensefor us to pursue other rev-enue streams while stillmanufacturing the mobilevet units.”

Kit car is designed tothrill

Bowie, which has 60,000square feet of manufactur-ing space on 25 acres, hasaccelerated into new territo-ry with the rebirth of asports car legend throughHurricane Motorsports,which Bowie acquired inOctober 2009. The compa-ny manufactures compo-nents for the 427 Cobra kitcar, including the frame,fiberglass body, roll bar andsome portion for suspensionsystem.

“After we acquired Hurri-cane Motorsports, we ana-lyzed what was great andnot too great about the car,and we did some retooling,”Sinnard said. Bowie em-ployees in Lake City beganmanufacturing Cobra 427components in February2010. The company also or-ders OEM components forthe car and supplies cus-tomers with an instruction

manual that shows how toassemble the sports car.

A base kit for the Cobra427 starts at $21,500, andthe price can rise into thehigh $20,000 range to low$30,000 range, dependingon how much assembly thecustomer asks HurricaneMotorsports to complete.“For many buyers, owning acar like this is a lifelongdream,” said Sinnard, whonoted that much of the kitcar business is driven oventhe Internet through siteslike ClubCobra.com and aHurricane Motorsports’ on-line forum.

Transporting animalssafely

Custom FiberglassCoaches is another recentaddition that fits well withBowie’s manufacturing ca-pabilities. In 2008, Bowieacquired this Florida com-pany, which sold animalcontrol units primarily in thesoutheastern United States.

Today, Bowie employeesmanufacture these durable,chassis-mounted fiberglassbodies for transport vehiclesthat are used by animal con-

trol agencies, police depart-ments, animal shelters andwildlife conservationists.The units, which are avail-able with air conditioning,heating, lighting packagesand Backsaver hoists to loadlarge, heavy animals, rangefrom $10,000 to $20,000.

“We’re expanding themarket for Custom Fiber-glass Coaches to Texas, thewestern United States, theNortheast and the Mid-west,” Sinnard said.

Bowie has also developedanother animal transportsystem, thanks to MontyRohrbeck, an avid hunterwho manages the Lake Cityplant. His compact, portablekennel called “The Com-panion” includes room for

hunting dogs in the lowerpart, along with a gun stor-age area in the top of thefiberglass unit.

“Each unit fits in the backof a pickup truck and can betransferred from truck totruck, which is a big pluswith buyers,” Rohrbecksaid.

Mobile vet units evolveProviding unique solu-

tions for customers has longbeen a hallmark of Bowie,which continues to offernew innovations for its mo-bile veterinary units that aresold across the United Statesand Canada. While the com-pany only produced a chas-

Bowie expands into diverse marketsLake City manufacturer stays true to mobile veterinary roots

bowie inTernaTional eMployee Dylan peDersen sands a fiberglass unit that has come out of the mold and will form theback end on a chassis-mounted mobile veterinary unit.

-Messenger/Farm News photos by Darcy Dougherty Maulsby

“The businesses

we’ve acquired

recently were strong

companies before,

and we’re making

them even better.”—Steve Sinnard

Executive vice president,Bowie International LLC

MonTy rohrbeck, plant manager at bowie international, in Lake City, has developed a portable dogkennel called The Companion that is designed to meet hunters needs. gun storage is included on the top ofthe fiberglass unit, which fits in the back of a pickup truck and can be transferred from truck to truck.

Jerry Tannehill, who has worked at bowie international for 44 years, re-conditions used mobile veterinary units that clients have traded in. The units canthen be resold and come with a warranty.

“The diversification

keeps the work interesting.”—Gary “Rowdy” Reicks

Parts specialist and customer service manager

S ee BOWIE, Page 27H


By KRISS NELSONFarm News staff writerAMES — The idea of us-

ing flight simulators is noth-ing new to training person-nel in the aviation industry.Now, that same concept willsoon be used to train em-ployees needing to gain ex-perience in operating abiorefinery, as well as stu-dents majoring in the biore-finery industry.

The Interactive Biorefin-ery Simulation has been indevelopment since 2008,said its developer DavidGrewell, associate professorwith Iowa State university’sdepartment of agriculturaland biosystems engineering.

I-BOS is a virtual biore-finery control room on theISU campus that Grewellcalls a “Nintendo for biofuelnerds.”

Grewell said I-BOS willeventually move from thecampus and into the indus-try for training purposes.

“We are still working onthe program,” Grewell said.“We’re hoping to have it to-tally debugged by the end ofthis summer.”

The I-BOS lab features avideo loop of a security sys-tem from Lincolnway Ener-gy and takes students

+ +


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tion tillage tagenerd-e than a thirame; UHMW polymer bearvier 4 X 8-inch tubing fr

ts; larger disc gang shafease; larning trunnion bear, and self-aligtdepth adjustmen

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esidue and cough on rts o ’’ nd it. Abudget

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epair our rou and y.estou BYo s wnoho K

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PROGRESS 2012

IBOS: ‘Nintendo for biofuel nerds’?

Priyanka Chand, a biorenewable resources and technology graduate student at Iowa state university and David Grewel, associateprofessor, look over the new Interactive biorefinery simulation during a late-January training session.

-Messenger/Farm News photo by Kriss Nelson

employeescan learnin virtualbiorefinery

S ee IBOS , Page 27H


through the entire processof producing eitherethanol or biodiesel —from feedstock delivery toloading finished productonto a railcar or into stor-age.

Grewell said he cansend com-mands to thesystemthrough hisphone tosimulate asystem mal-function. Hecan also re-ceive feed-backthrough hisphone to de-termine how long it tookstudents to identify theproblem.

Companies, such asethanol plants andbiodiesel plants, Grewellsaid, will be enabled touse the virtual programfor employee training.This should be offered atno cost, he said, becauseI-BOS was federally fund-ed.

Most plants in the bio-fuel industry, Grewellsaid, are operated on simi-lar platforms, so I-BOSwould be a universaltraining tool.

As the usage of otherfeedstocks and technolo-gies, such as cellulosicethanol, come to the fore-front in biofuels, softwarecan be written into theprogram fairly easily, hesaid.

Grewell said he devel-oped the idea for I-BOSafter using a simulatormade for a different pur-pose.

“I thought a simulatorcould be used in differentteaching applications andran with it from there tocreate the biorefinery sim-ulator,” he said. “It’s a lotlike a flight simulator,” hesaid, “with trainees learn-

ing how to run an ethanolor biodiesel plant, beforeactually going in to thatsituation.”

Grewell said the I-BOSclass is a 15-week cur-riculum, but estimateswhen used in an industrysituation, an employeecould be trained in a fewweeks.

“The students will learnmore of the fundamentals

of a biorefinery,” he said.A huge benefit to using

simulators, Grewell said,is it allows students tolearn how to respond toemergency situations,something that, of course,can’t be done in a real sit-uation.

“They can experimentwith all sorts of differentaspects and learn throughtrial and error,” he said.

The I-BOS was built byGrewell with assistancefrom Melissa Montalbo-Lomboy, a post-doctoralresearch associate;Priyanka Chand, a doctor-al student; ChristopherRempe, a senior in indus-trial technology and for-mer students, David Chip-man and Yuriy Gritsenko.

This project was sup-ported by a three-year,

$300,000 grant funded bythe U.S. Department ofAgriculture; the Renew-able Energy Group Inc., ofAmes; Lincolnway Ener-gy, of Nevada; Fastek In-ternational, of CedarRapids; Cargill; CrownIron Works Co.; andEmerson Electric Co.

Contact Kriss nelson [email protected]

+ +

B O E H R I N G E R I N G E L H E I M V E T M E D I C A , I N C .

THANK YOU Fort Dodge for

making us a part of the

community.

PROGRESS 2012

BowieContinued from Page

sis-mounted fiberglass mo-bile veterinary clinic in theearly years, today Bowiemanufactures a variety ofunits that can slip into dif-ferent types of trucks, frommid-sized pickups to ex-tended-cab vehicles andother models. Bowie alsomanufactures the DIPLO-MAT II, a slide-in unitthat’s compact enough tofit into the back of sport-utility vehicles and minivans.

“These units are a vet-erinarian’s office onwheels,” said Sinnard.Bowie’s 2008 acquisitionof Iowa-based Porta-Vet,of Hudson, brought to-gether more than 90 yearsof veterinary mobile man-ufacturing experience.“The vet units have al-ways been a successfulpart of our business.”

In the last few years,Bowie has made a numberof improvements on itsmobile vet units, includ-ing redesigned electricalsystems, complete withbright LED lights thatmake it easier to work atnight. Depending on themodel, units can rangefrom $2,995 to $21,000and can include refrigera-tion for medications, awater system, room for x-ray equipment.

While it’s not uncom-mon for units to last up to20 years, many clientstrade every three to fiveyears, said Sinnard.Bowie reconditions usedmobile veterinary unitsfor resale, with war-ranties.

Future focus

Bowie’s ability to pro-vide quality products andservice is enhanced by thecompany’s sizeable num-ber of long-time employ-ees.

“The diversificationkeeps the work interest-ing,” said Gary “Rowdy”Reicks, a parts specialistand customer servicemanager who has workedat Bowie for nearly 45years.

Lake City is a goodbase of operations for thecompany, because the em-ployees have a strongMidwestern work ethic,said Sinnard, who is opti-mistic about the future.

“Sales have been posi-tive and the prospects forgrowth are outstanding aswe enhance our technolo-gies and continue to findnew product lines to de-velop,” he said.

For more information onBowie International, logonto www.bowieintl.com.

Contact darcy doughertymaulsby at [email protected]

IBOS Continued from Page 26H

David

Grewell


By KARENSCHWALLER

Farm News staff writerSPENCER — A strong

agricultural economy wasthe driving force behind aSpencer manufacturingfirm’s decision to expandits product line and workforce.

Lakes Enterprises Inc.,doing business as MaurerManufacturing, in Spencer,a manufacturer of steelgrain trailers and otherfarm equipment acces-sories, purchased an alu-minum trailer product linein March 2011 from Gem-L, based in Brandon, S.D.

The purchase was madewith the goal to move pro-duction to the Spencerplant, and have it up andrunning by late summer2012.

Company officials ex-pect to expand the initialwork force from six to 12workers with the new alu-minum trailer line, withplans of expanding thateven further once produc-tion begins and if salescontinue to be successful.

Currently, there are 94people employed at MaurerManufacturing.

“We were wanting (tointroduce) an aluminumproduct line,” said JohnTatman, plant manager forMaurer Manufacturing,“and we talked about doingit ourselves or buying aproduct line.

“We went this way sothat we could hit the mar-

ket sooner. When we ac-quired the aluminum line,it rounded out our offer-ings.”

Although production hasyet to begin in Spencer,Tatman said the trailerswill feature a steel subframe, steel kingpin andaxle and an aluminum trail-er. Trailer lengths will varyfrom 28 feet to 48 feet.

“Steel grain trailers are alittle stronger and less ex-pensive, but the aluminumtrailers are lighter weight,(meaning that grain pro-ducers) can haul moregrain to town at a time,”Tatman said.

He added that the trailerswill take three differentforms, including springride, which he said is less

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PROGRESS 2012

Maurer moves into aluminum trailersPurchase goal is to move production to the spencer plant

Maurer Manufacturing has purchased thedesign for a new line of aluminum trailers, which willbe produced at its spencer factory. Production is tar-geted to begin in late in summer.

-Messenger/Farm News photos by Karen Schwaller

Maurer Manufacturing employee mitchmiller works on one of the companyís new aluminumtrailers. The company estimates itíll produce 300 to400 of the trailers in its first year of assembly, start-ing in late summer.

S ee MAURER, Page


expensive; air ride, which is a little more expensive; and triple axle.“With triple axle trailers, farmers can haul more because of the longer (trailer)

lengths,” Tatman said.Standard features on the aluminum trailers will include 22.5K tandem axles with

ABS brakes on single axles, and 10-bolt hub piloted rims; front and rear aluminumladders, manifest holder, sealed wiring systems, two-speed landing gear on 36-foot to48-foot trailers, full center dividers on all trailers 36 feet long and longer, and 20-by-30-inch hopper openings.

The company produces about 600 steel trailers annually and is targeted to produce300 to 400 aluminum trailers in its first year of production.

That number could increase if sales are strong, Tatman said.Headquartered in Spencer, the company has dealers across the nation, and ships its

ag accessory products around the world— including Australia and Kazakhstan.Maurer Manufacturing was born on a farm near Sutherland in 1992, under the di-

rection of Bob and Peg Maurer.At that time, it produced combine grain tank extensions.The company was moved to its Spencer location in 1995. Its production line ex-

panded to include steel grain trailers, extensions for combine augers, head trailers,various combine auger products, gondola trailers for the scrap industry and drop decktrailers.

“Our drop deck trailers have been very strong for us,” Tatman said.The company’s newest offering is called a “Revolver,” a flow attachment which

hooks onto the end of a combine auger.“It can be rotated (facing) up so that there is less spillage of grain as the combine

finishes emptying,” Tatman said.Maurer Manufacturing is located in Spencer’s industrial park on the city’s west

edge.

Contact Karen Schwaller at [email protected].

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PROGRESS 2012

Maurer Continued from Page 28H

Maurer Manufacturing employee Travis Langholz works on one of thecompany’s new aluminum trailers. The company purchased a trailer design,rather than design its own in order to ìhit the market sooner,î said John Tatman,plant manager.

-Messenger/Farm News photo by Karen Schwaller


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PROGRESS 2012

Oil refiner enters ethanol manufacturing

Flint Hill owns four Iowa plants

Flint Hills ResouRces, whose core business is refining oil, has acquired four Iowa ethanol plants over the past two years, including this one in menlo. Com-bined, the four plants produce 435 million gallons of ethanol and employ 200 people.


By DAVE DEVALOISFarm News staff writer

AMES — Flint Hills Resources, an in-dependent refining and chemicals compa-ny, has been involved in ethanol for manyyears, but only recently became a produc-er of ethanol.

Over the past two years, the company

has purchased four Iowa ethanol plantsand now produces nearly 435 million gal-lons of ethanol annually, its plants con-sume approximately 155 million bushelsof Iowa corn each year.

Flint Hills Resources, which is based in

S ee FLINT HILL, Page 31H


Wichita, Kan., owns plantsin Fairbank, Iowa Falls,Menlo and Shell Rock. TheIowa Falls and Fairbank fa-cilities were acquired inFebruary 2011. The fourethanol plants employ ap-proximately 200 employ-ees. The company alsoopened an office in Amesin April 2011 to supportthe four plants. The Ameslocation includes opera-tions, human resources,purchasing and marketingactivities, according to aFlint Hills release.

That office houses 20employees and is responsi-ble for marketing nearly1.2 million tons of ethanoland its byproducts, includ-ing distiller’s dried grains,according to a company re-lease.

Jake Reint, public affairsdirector for Flint Hills Re-sources, said the companyhas been blending ethanolin Minnesota for manyyears.

“We’re that state’slargest purchaser of biofu-els,” Reint said.

Last year, it blended 435million gallons of ethanol.

The company decided toexpand into ethanol pro-duction, since ethanol fitswell with the company’score business.

“For us, these plants andinvestments enhance ourexisting base transportationfuels business, while pro-viding a platform to growand develop the renewablesmarket,” Reint said.

In addition to the fourIowa ethanol plants, FlintHills operates biodieselplants in Texas and Ne-braska. Flint Hills’ corebusiness includes oil refin-ing complexes in Alaska,Rosemount, Minn., andCorpus Christi, Texas. Ithas a combined daily crude

oil processing capacity ofmore than 800,000 barrels.Ethanol produced at thefour Iowa plants is not usedin the company’s blendingoperations or its fuelpipelines, Reint said.

“The ethanol we producecompetes in the open mar-ket,” he said.

The ethanol is shippedprimarily by rail. Whilemany ethanol producersthroughout Iowa have

failed in recent years as theprice of corn eclipsed $7per bushel, Flint Hills isprepared to withstandtough market conditions,Reint said.

“We know what’s infront of us. Our goal is tobe able to compete in anymarket environment,” hesaid. “For us, the key isbroad-based optimizationand utilization. We’re high-ly efficient and productive.

We’re very pleased withour results so far.”

Flint Hills Resources op-erates several enterprises inIowa. The company distrib-utes refined petroleumproducts throughout thestate, owns a fuel terminalin Bettendorf, and also op-erates asphalt plants inAlgona, Davenport andDubuque.

Contact dave devalois [email protected].

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Progress is EVERYONE’S business.

515-955-5500 515-955-7788

We are committed to advancing

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Greater Fort Dodge Growth Alliance

Welcome!

The Greater Fort Dodge Growth Alliance thanks Cargill and CJ America for their selection of Webster County to locate their new value added agricultural facilities.

PROGRESS 2012

Flint Hills ResouRces, whose core business is refining oil, has acquiredfour iowa ethanol plants over the past two years, including this one in menlo.Combined, the four plants produce 435 million gallons of ethanol and employ 200people.


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Flint Hill Continued from Page 30H

“The ethanol we

produce competes

in the open

market.”—Jake Reint

Public affairs director,

Flint HIll Resources


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2012 Agricultural Progress

Documents

Transcript of 2012 Agricultural Progress