02 Broadcaster Press October 28, 2014 www.broadcasteronline.com Ag Opps focuses on service and faces challenges By Katie Clausen For the Plain Talk “For a community to grow it needs to be well rounded,” said Kevin Myron, who operates local grain facility, Ag OPPortunities, Inc. Built on agribusiness and the farming community, Vermillion has grown a lot over the last 50 plus years the area’s current elevators have been around. But agribusiness is still a significant influence in the local economy. “We like to know our role,” said Myron. “We are now what was originally three different elevators in Vermillion.” Ag Opps has been taking soybeans and corn for local producers and allowing them to sell those products year after year. “We are still privately owned which is unique in the grain business anymore,” Myron said. Currently operating in full swing, Ag Opps is contributing to the unique economic environment that is Vermillion. “We are part agriculture business, part commercial business and part local business,” Myron said. Original bushel capacity of the three elevators was approximately 1 million bushels; over the years Ag Opps has been able to expand that capacity to about 2.4 million bushels. For Myron and his group of employee’s, it’s all about service. “I can buy grain and write checks; do the accounting,” said Connie Taggart. “I really like the interactions with the farmer.” Taggart has been working at Ag Opps for 33 years. Ag Opps focuses on operational advantages to help service local farmers. Service to local producers is his number one priority. “We are particularly a harvest elevator; we run seven days a week,” Myron said. With changes in plant genetics and advances in the agronomic sciences, keeping up with the influx in grain produced per acre has changed the dynamic of receiving all of the crops in the country. “We try to run longer hours than any other elevator in the area,” Myron said. “We can dump at multiple sites to keep lines shorter. That way our customers know they can get their crop out.” Myron and his Ag Opps staff also focus on helping local producers’ better market their grain. Grain marketing based on the board of trade is crucial to the success of the producer. “Back in the 1980s and 1990s there wasn’t as much volatility in the grain market,” Myron said. “Over the last six years my marketing plans have been completely different.” Myron has the capabilities to educate farmers and help them explore the various ways they can market their products. “We can help inform them on futures, or options or storage,” Myron said. “Just helping them know what different decisions are out there.” With the popularity of ethanol production, and the myriad of products now made from soybeans, Myron has been able to take advantage of selling grain to multiple processing sites. 80 80 h H Happy 80th Birthday Birthday y Shirley Thedorff Thedorff T On Thursday, October 30th Thursday, October y, y P Please send greetings to Shirley at: d greetings n 46469 304th Street • Center ville, SD 57014 Centerville, Ag Opps operates grain receiving facilities at multiple locations around Vermillion, such as this one south of the bluff. (THOMAS HATZENBUHLER) “I wish there was a better understanding of the whole ethanol business,” said Myron. “I hear people criticize ethanol but when we take corn and make ethanol we get a DDG product that goes back into our food economy.” DDG, also known as distiller’s grain, is a common food source for livestock and a byproduct of ethanol. While currently placed along the rail system, Ag Opps is not working with the rail at this time. This has both advantages and disadvantages. “We are no longer relying on the rail to load now,” Myron said. “So I can employ more people.” Ag Opps employs four to seven truck drivers throughout the year to ensure grain gets moved to processing plants. “Working with the rail is hard right now,” Myron said. “Getting rail cars in and out on time is not reliable.” Ag Opps ships their commodities by truck. Myron prefers employing truck drivers because it helps the local community. “Truck drivers are buying fuel and tires and patronizing our local economy more than the rail does,” Myron said. Across the United States, rail lines have been experiencing delays in the shipment of commodities. The oil boom in North Dakota has contributed to the loss of labor in other locations, and also has shifted the shipping focus from ethanol and grains, to crude oil. Although just one site, Ag Opps is part of this national commodity trade. “You are allotted 24 hours to load a car, but then sometimes that railcar will sit on this track for a week,” Myron said. Myron hasn’t completely ruled out working with the rail in the future, acknowledging that improvements in their infrastructure could change the way the rail system works locally. Comfy Footwear from The Healthiest Shoes You Will Ever Wear! Boston 3rd • Yankton • to Boots Shoes 665-9092 312 W. 9 5 HAPPY DAY DAY A BIRTHDAY TH “We would never rule out working with the Burlington Northern. In fact, we are looking at some possibilities of being a lime storage facility that would come in on the rail,” Myron said. While Ag Opps has continued to be the local grain standard for its loyal customers, there have been significant challenges along the way as well. “My biggest challenge right now, and this has really come to light over the recent years, is getting labor,” Myron said. “We will have anywhere from 10 to 15 people year round, but during harvest we employ up to 30,” Myron said. Having USD located so close used to give Ag Opps a hiring advantage, but in recent years he has seen a decline in students willing to work. “I used to get phone calls during harvest from farm kids who were going to USD who wanted to come work at the elevator,” Myron said. “But that doesn’t happen anymore.” Aside from labor and shipping issues, the sheer volume of commodities www.broadcasteronline.com Let Our Family Business keep yours in the go with: • Farm Filters • Hydraulic Hoses • Bearings & Seals Cox Auto Car C rd Card shower – 95th Birth Birthday November 1st for Maurice ( Mau y”) Erick aurice (“Maury”) Erickson (“Mau ur ) Sanford Vermillion Care Center Vermillion on r 125 Walker Street, Room 124 • Vermillion, SD 57069 125 Walker , Vermillion, , NEXT TUESDAY IS ELECTION DAY! PLEASE JOIN THOUSANDS OF REPUBLICANS AND DEMOCRATS WHO WILL VOTE FOR A NEW STATE TREASURER! VOTE FOR DENNY PIERSON! “WE NEED BALANCE AND FAIRNESS IN PIERRE. I PLEDGE MY SERVICE TO YOU!” – STATE TREASURER! www.piersonforstatetreasurersd.com p Paid for by Denny Pierson for State Treasurer Committee coming in has changed the elevator business. “Another challenge we face is now that farmers have bigger combines and more semis,” Myron said. “I get in in one or two days what I used to get in in a week.” Each year is different in agribusiness, and while Myron and his employees try to do their best to deal with changes in the business there are some things they can’t predict or control. “The year to year changes with Mother Nature are a challenge too. The flooding a few years ago caused us to have 50 percent of our normal volume that year,” Myron said. “Trying to plan or adapt to those curve balls that Mother Nature throws us is a real challenge.” Regardless of what challenges Ag Opps may face, they are focused on continuing to be here to serve local farmers and contribute to the local economy. “There is a belief that there will always be an elevator here but we have to make that work,” Myron said. 1007 Broadway Ave. • Yankton • 665-4494