If You’ve Got a Good Plan, Make Another One

Dec 14, 2021


Cross off plan A and go with plan B
With two less-than-normal growing seasons now in the books, Tim Stelter, manager at Federated’s Osceola location, offered encouragement, thanks, and some sound advice for every Federated grower.
 
“First off, I’d like to thank all of you for a great year. To my co-workers, it is a pleasure working alongside you, and to our great customers, saying ‘thank you’ is hardly enough. You are the reason for [Federated’s] success.
 
“I’ve been at Federated a long time, and I can say – without a doubt – that the last six to eight months have been the least normal ever. We’ve read and heard about worldwide price increases and supply problems, and fertilizer and crop protection products are not immune to these issues.
 
“In unprecedented times like these, be sure you are doing business with a trusted supplier/advisor. Federated Co-ops is ready to be your supplier, and our agronomy team is at your service to advise, recommend, and help you make plans.
 
“This coming year, we – growers and Federated – all need a plan A, and then a plan B, too, since it is highly likely not everything will go according to plan A. Even if you don’t use plan B, it’s a good exercise to have more than one option on the table.
 
“Our suppliers have conveyed this message: Prepaying may not guarantee that you get exactly what you want when you want it, but it’s your best insurance at this point.
 
“Federated has had several items ordered for months and we are still awaiting delivery. This is an industry wide problem. Please, be assured we are doing all we can to secure adequate supplies at competitive prices.
 
“If you traditionally buy at least a portion of your inputs at the end of the year, we hope to have prices set by then. As a backup plan, if we are unable to lock down pricing on certain items, we can make a ‘dollar contract,’ which locks in specific dollar amounts and quantities for seed, chemical, fertilizer, and/or fuel.
 
“Because of the volatility of the market, you will be asked for 100% payment at the time contracts are made, and whether the markets swing up or down, your contract quantities and prices stay the same. The contract locks in your commitment even as Federated goes out and buys the products today for your use in 2022.
 
“Also, since input costs for next season have doubled (or more) from this past season. be sure you have adequate financing in place. Kelly Meyer, Federated’s business service specialist, can help you with that.
 
“Patience will be our best virtue as we navigate this uncharted water together. We are bound to stumble a bit now and then, but we can get through the challenges for a successful growing season. Federated is a financially sound, reputable, and trustworthy cooperative that you can depend on.”
 
Contact your Federated Agronomist with any questions or concerns, and to get going with plans A and B.
 

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