NEWS RELEASE – For Immediate Release – February 21, 2012

Harvest Land Cooperative Receives Honor at State Convention

The Harvest Land Cooperative based in Morgan, was honored recently at the 105^th annual convention of the Minnesota Grain and Feed Association (MGFA), by being inducted into the MGFA Century Club. The MGFA Century Club currently consists of 17 Minnesota grain elevator and feed mill firms that have been in continuous operation for over 100 years, providing vital rural community leadership, economic development, market access, essential agricultural inputs and quality customer service over the years.

Harvest Land Cooperative’s founding companies were actually 2 former elevators, the Morgan Farmers Elevator, which was established in 1904 and the Springfield Farmers Elevator Company which was also established in 1904. In the early days these 2 locations collectively handled quite a variety of products from grain, fence posts, lumber, salt, twine, wire & farm implements to hard and soft coal, flour, feed, cement & rock salt, all of which were considered critical supplies needed by the cooperative’s producer-owners.

Each location invested in equipment and facilities throughout the years. Morgan’s first elevator was built in 1904 and Springfield’s elevator was built a year later in 1905. Both facilities added to their holdings over time, through new construction of needed warehouse space, storage capacity, a feed mill at Morgan, and with equipment purchases like new scales, grain dryers and fertilizer application equipment.

In 1965, the Morgan location entered the aqua nitrogen and anhydrous ammonia business. In 1973 they got into the petroleum business, and a year later they added propane business to their list of services offered. In 1974, they built the Southern Seven Terminal at Springfield with 6 other cooperatives. Springfield sold their interest in the business 4 years later, in 1978, to the Morgan Farmers Elevator, who also bought out the other 5 cooperatives as well.

On September 1, 1984 the Morgan Farmers Elevator and the Springfield Farmers Elevator Company merged to create what is now known as Harvest Land Cooperative. In 1991, Harvest Land Cooperative formed AgQuest Financial for the purpose of providing high quality and comprehensive financial products, insurance and services for producers. AgQuest consists of 13 cooperative and independent retailers throughout the United States. In 1996, Harvest Land entered the leasing business with Northland Capital located in St. Cloud. Through AgQuest and Northland Capital, LLC subsidiaries, they provide patrons with financing, insurance, and leasing options.

In the nearly 30 years since Harvest Land Cooperative came into existence, they’ve continued to thrive. Expansion into the turkey business, the addition of refined fuels to the cooperative mix, the continual expansion of storage capabilities, becoming a shuttle train loading facility and the addition of an in-house finance company, has positioned this cooperative for further success in the future. Today, Harvest Land Cooperative employs 86 people full time, handles 26 million bushels of grain annually, has a total storage capacity of 12.5 million bushels, produces 110,000 tons of feed annually and has 5 locations in the communities of Comfrey, Morton, Morgan, Springfield and Wabasso. Congratulations on over 100 years of success in the grain, feed and agribusiness industry!

The Minnesota country elevator industry consists of 350 firms operating out of nearly 600 locations in the State. The “average” country grain elevator employs 20 people full time, handles 7.5 million bushels of grain annually, has an annual sales volume of over $42 million, has been in business for over 65 years and pays a combined $250,000 in annual payroll, property and income tax. To learn more about MGFA and the Minnesota grain elevator and feed mill industry, go to www.mgfa.org

Caption: Harvest Land Cooperative of Morgan was inducted into the Minnesota Grain and Feed Association Century Club, in recognition of over a century of continuous service. Pictured (L-R): Bob Zelenka, MGFA Executive Director, Dennis Schreier, Co-op General Manager and Wes Cole, MGFA President.

WHEAT: U.S. wheat ending stocks for 2011/12 are projected lower this month. Exports are raised 25 million bushels supported by the stronger-than-expected pace of sales and shipments, particularly for competitively priced feed-quality wheat. Projected exports of Soft Red Winter and White wheat are each raised 15 million bushels on strong demand from Mexico and South Korea. Exports are also projected higher for Hard Red Winter wheat, up 5 million bushels, based on sales and shipments to date. Projected Hard Red Spring wheat exports are lowered 10 million bushels as strong domestic premiums for spring wheat continue to limit demand. Ending stocks for all wheat are projected 25 million bushels lower at 845 million. Based on prices reported to date and the lower expected carryout, the 2011/12 projected season-average farm price is raised 20 cents on the bottom end of the range to $7.15 to $7.45 per bushel.

Global wheat supplies for 2011/12 are projected 2.1 million tons higher with larger beginning stocks in Kazakhstan and increased production for India, Kazakhstan, and Morocco. Kazakhstan beginning stocks are raised 0.6 million tons with reduced domestic consumption for 2010/11. India production for 2011/12 is increased 0.9 million tons reflecting the latest government revisions, which increased yields for the crop that was harvested last spring. Kazakhstan production is raised 0.2 million tons based on the recent official estimate. Production for Morocco is raised 0.2 million tons also on official revisions to estimated yields in a crop that was harvested several months ago.

Global trade is raised slightly for 2011/12 with world imports increased 0.7 million tons. Small increases in imports are made for Saudi Arabia, Mexico, Chile, and Ethiopia. Export reductions for Ukraine, Canada, and India are more than offset by increases for Russia, the United States, Argentina, and Brazil. Global wheat consumption is reduced 1.0 million tons mostly reflecting a 1.6-million-ton reduction in India food use. Partly offsetting are small increases in food use for Australia, Chile, Ethiopia, and Kazakhstan. Global wheat feeding is nearly unchanged with a 1.0-million-ton reduction for Kazakhstan offset by increases for Ukraine, Saudi Arabia, Canada, and Mexico. Global ending stocks for 2011/12 are raised 3.1 million tons to a record 213.1 million. As projected, 2011/12 global wheat stocks would be 2.4 million tons higher than the previous record in 1999/2000.

COARSE GRAINS: U.S. feed grain ending stocks for 2011/12 are projected lower this month as increases in corn and oats imports are more than offset by higher expected corn exports. Projected corn and oats imports are raised 5 and 10 million bushels, respectively, based on the strong pace of shipments during the most recently reported September- November quarter. U.S. corn exports are projected 50 million bushels higher with reduced supplies in Argentina and recent increases in both sales and shipments. Corn ending stocks are projected 45 million bushels lower at 801 million. The projected range for the season average farm corn price is narrowed 10 cents on both ends of the range to $5.80 to $6.60 per bushel. Global coarse grain supplies for 2011/12 are projected 3.1 million tons lower mostly reflecting reduced corn production prospects in Argentina and, to a lesser extent, Paraguay. Argentina corn production is lowered 4.0 million tons to 22 million as field reports confirm that high temperatures and extensive dryness during pollination in late December and early January resulted in irreversible damage to early corn in the central growing region. Late planted corn, which has been on the increase in recent years, will help offset some of the earlier losses, but additional rainfall is needed to stabilize production prospects. Corn production is lowered 0.4 million tons for adjacent Paraguay where hot, dry weather also reduced area and yields. Partly offsetting are small corn production increases for EU-27 and the Philippines. Global barley production is raised with Argentina production up 0.7 million tons on higher reported area and yields for the crop that was harvested during late 2011. Global coarse grain trade for 2011/12 is raised with higher corn imports for EU-27 and higher barley imports for Saudi Arabia, EU-27, and Jordan. Partly offsetting is a reduction in corn imports for Canada. Higher corn exports for a number of countries offset a 4.5-million-ton reduction for Argentina. Along with the projected increase for the United States, corn exports are raised 2.0 million tons for Ukraine, 0.5 million tons each for Brazil and EU-27, and 0.2 million tons for Russia. Barley exports are lowered 1.0 million tons for Ukraine, but raised 0.7 million tons for Russia, 0.5 million tons for Argentina, and 0.3 million tons each for Canada, EU-27, and Kazakhstan.

Global coarse grain consumption for 2011/12 is raised slightly with higher barley feeding in Ukraine and Jordan and higher corn feeding in Argentina and Ukraine. Corn feeding,

however, is lowered for Canada and barley feeding is lowered for Kazakhstan and Saudi Arabia. Saudi Arabia is expected to rebuild stocks as world barley production has rebounded from a 40-year low in 2010/11. Global coarse grain ending stocks for 2011/12 are lowered, with a 2.8-million-ton reduction in corn stocks and a 0.6-million-ton reduction in barley stocks. At the projected 125.4 million tons, global corn ending stocks would be the lowest since 2006/07.

OILSEEDS: U.S. soybean supply and use projections for 2011/12 are unchanged this month, leaving ending stocks at 275 million bushels. Soybean exports are projected at 1.275 billion bushels, down 226 million from last year. Although soybean export commitments through January trail last year’s pace by more than 226 million bushels, lower soybean crop forecasts and reduced export projections for Brazil, Argentina, and Paraguay are expected to be offset by additional U.S. sales and exports during the second half of the marketing year. The U.S. season-average soybean price range for 2011/12 is narrowed to $11.10 to $12.30 per bushel compared with $10.95 to $12.45 last month. Soybean oil prices are forecast at 50.5 to 54.5 cents per pound, and soybean meal prices are projected at $290 to $320 per short ton, both unchanged from last month. Global oilseed production for 2011/12 is projected at 452.5 million tons, down 4.9 million tons from last month. Brazil soybean production is forecast at 72 million tons, down 2 million due to lower projected yields. The reduction reflects hot, dry conditions in southern Brazil in December and January. Argentina soybean production is projected at 48 million tons, down 2.5 million. Despite widespread rains in recent weeks, the extended hot, dry period during planting and early crop development limited plantings and reduced yield prospects. Paraguay and Uruguay soybean production estimates are also reduced this month. Other changes include higher rapeseed production for China and Russia, lower rapeseed and sunflowerseed production for Kazakhstan, and higher cottonseed production for Pakistan. Global oilseed trade for 2011/12 is projected at 110.5 million tons, down 2.6 million mainly reflecting reduced soybean export projections for Brazil, Argentina, and Paraguay. Soybean imports are reduced for China, EU-27, South Korea, Russia, and several Middle East countries. China soybean imports are reduced 1 million tons to 55.5 million reflecting lower than expected October-December imports. Global oilseed ending stocks are projected at 71.2 million tons, down 3.6 million from last month. Reduced soybean stocks in Brazil and Argentina account for most of the change.

2011/12 Ending Stocks                                   

Jan.                       Feb. 9th                               

                                            USDA                       USDA

 Corn                                     846                          801

Soybeans                             275                           275

Wheat                                  870                           845

Note: World Stocks in millions of metric tons

2011/12 World Stocks

Jan.                        Feb. 9th

USDA                       USDA

Corn                                    128.1                          125.35                         

Soybeans                             63.4                            60.28                         

Wheat                                  210                             213.10

Jan.                       Feb. 9th                               

                                            USDA                       USDA

                                                                                            Corn                                     846                          801

Soybeans                             275                           275

Wheat                                  870                           845

Note: World Stocks in millions of metric tons

2011/12 World Stocks

Jan.                        Feb. 9th

USDA                       USDA

Corn                                    128.1                          125.35                         

Soybeans                             63.4                            60.28                        

Wheat                                  210                             213.10

Thursday’s report will be of interest as the USDA is expected to cut South American production

The following are estimates by various services and companies for Argentina’s and Brazilian production.

NOTE: Production in millions of tonnes.

Argentina                            Brazil

Corn        Soybean             Corn      Soybean

Average trade estimate                         21.656      48.026               59.179    71.265

Highest trade estimate                          24.500      50.000               60.500    73.500

Lowest trade estimate                           18.800      45.000               58.000    69.500

USDA January                                         26.000      50.500               61.000    74.000

USDA 2010/11 Final                               22.500      49.000               57.500    75.500

ABN Amro                                               23.000      50.000              60.000     72.000

ADM Investor Services                           20.000      49.000               59.000    71.000

Allendale Inc.                                          23.000      49.000              60.000     72.000

Agroconsult                                            18.800       45.000                 na            na

Michael Cordonnier                               20.000       49.000              58.000    70.000

Doane Advisory Services                        21.000      47.000                  na        71.000

Farm Futures                                          21.500      49.500               58.500    72.000

Global Commodity                                 22.000      49.500               59.000    71.500

Analytics

Goldman Sachs                                          na         45.000                   na        70.000

Jefferies Bache                                      22.000      48.000                59.000    71.000

Kropf Love Consulting                           24.000      49.000                60.000    73.000

McKeany-Flavell                                   23.500      50.000                 60.500    73.000

Michael Cordonnier                             20.000      49.000                  58.000   70.000

Newedge USA                                       20.000      46.000                 59.000    70.000

North America Risk Mgmt.                  22.500      49.000                 60.000    72.000

PFG Best                                               24.500      50.000                 59.500    73.500

Traders Group Inc.                               19.700      45.500                 58.000    69.500

USDA Attache                                       21.800      46.500                    na          na

Informa Economics*                            22.500      46.500                    na        70.000

*from trade

sources

This Thursday, February 9, 2012at 7:30 a.m., the USDA will issue their world supply and demand estimates.

Thursday’s report will be of interest as the USDA is expected to cut South American production.

The following are estimates by various services and companies for Argentina’s and Brazilian production.

    NOTE: Production in millions of tonnes.

                                                                    Argentina                            Brazil

                                                                Corn        Soybean             Corn      Soybean

Average trade estimate                         21.656      48.026               59.179    71.265

Highest trade estimate                          24.500      50.000               60.500    73.500

Lowest trade estimate                           18.800      45.000               58.000    69.500

USDA January                                         26.000      50.500               61.000    74.000

USDA 2010/11 Final                               22.500      49.000               57.500    75.500

ABN Amro                                               23.000      50.000              60.000     72.000

ADM Investor Services                           20.000      49.000               59.000    71.000

Allendale Inc.                                          23.000      49.000              60.000     72.000

Agroconsult                                            18.800       45.000                 na            na

Michael Cordonnier                               20.000       49.000              58.000    70.000

Doane Advisory Services                        21.000      47.000                  na        71.000

Farm Futures                                          21.500      49.500               58.500    72.000

Global Commodity                                 22.000      49.500               59.000    71.500

Analytics

Goldman Sachs                                          na         45.000                   na        70.000

Jefferies Bache                                      22.000      48.000                59.000    71.000

Kropf Love Consulting                           24.000      49.000                60.000    73.000

McKeany-Flavell                                   23.500      50.000                 60.500    73.000

Michael Cordonnier                             20.000      49.000                  58.000   70.000

Newedge USA                                       20.000      46.000                 59.000    70.000

North America Risk Mgmt.                  22.500      49.000                 60.000    72.000

PFG Best                                               24.500      50.000                 59.500    73.500

Traders Group Inc.                               19.700      45.500                 58.000    69.500

USDA Attache                                       21.800      46.500                    na          na

Informa Economics*                            22.500      46.500                    na        70.000

*from trade

sources

Luvern “Ernie” Kalkhoff, CFO of Harvest Land Cooperative, has decided to retire from the organization and dedicate his attention of farming full-time. For over 33 years, Ernie has been a valued member of the Harvest Land team and we wish him all the best as he makes the transition back to his family farm. Ernie will continue to work through March 30^th, 2012.

We wish you the best in the future Ernie.

Click the link to check out the combine+corn field effect they made

Project “CAN DO” is in the Guinness Book of World Records