Minnesota Soybean Processors
Box 100   Brewster, MN   56119-0100
Ph: 1-507-343-6677   Fax: 1-507-727-2677

 
The Bean Counter

www.MnSoy.com

February 2002

V. President
   Ron Obermoller
   Brewster, MN
   507-842-5467

Secretary
   Bruce Hill
   Worthington, MN
   507-842-5402

Treasurer
   Paul Henning
   Okabena, MN
   507-853-4669

Director
   William Fest
   Heron Lake, MN
   507-793-2585

Director
   Darol Schmitz
   Brewster, MN
   507-842-5413

Director
   Steffen VanWesten
   Reading, MN
   507-478-4552

Director
   LeRoy Kellenberger
   Beaver Creek, MN
   507-673-2283

Director
   Greg Nieuwendorp
   Sheldon, IA
   712-324-4441

Director
   David Bunde
   Stewartville, MN
   507-533-4928

The target we will be working diligently to achieve will be to have your new 100,000 bushel per day soybean processing plant up and running for the 2003 harvest (a short 20 months down the road). Several things need to be coordinated to achieve construction on time and within budget. MnSP is not alone in the process but will be working with public officials at the city, county, state and federal levels. We are committed to keep MnSP's membership informed of our progress and all key issues related to the development of your facility. In this letter I would like to hit on the permitting issues we consider critical to achieve the above stated objective.

The City of Brewster will provide water and wastewater treatment for the soybean processing plant. In order to meet MnSP's needs, the City of Brewster with the support of Nobles County will be utilizing Tax Incremental Financing (TIF) to improve the fresh and wastewater facilities they now have. Over the last month we have met with the local officials twice and I would report to you that we have good participation, support and plenty of work ahead of us to finalize the project. I would point out to our members that as we work with the city for water allocation and wastewater treatment, plans for the future are a portion of our request. For example, we are asking for a water allocation that includes an expanded soybean crush to 140,000 bushels, a 1,000-ton refinery and biodiesel capabilities. Individuals knowledgeable of southwestern Minnesota are aware that water supplies are always a tough issue. Therefore we need to know today that MnSP's future needs will be met. The City of Brewster, Nobles County and MnSP will be spending over $100,000 to prove the availability of water and to receive its water allocation from the State of Minnesota. Costs like these prevented MnSP from having this issue resolved before the equity was raised. It would have been difficult and inappropriate for the local governments to expend this type of taxpayer funds without MnSP's equity in position.

While MnSP will have well over a dozen permits to obtain prior to operating a soybean processing plant, we have focused our efforts on two items: the Environmental Assessment Worksheet (EAW) and the Air Quality Permit. The EAW provides an overall review of the environmental impact that our soybean plant will have on the area and assures that the applicants (MnSP) address all permitting issues. I have heard the EAW referred to as a clearinghouse that prevents a permitting issue to be left out early in the process. Questions raised at this point concerning MnSP's submitted EAW are directed toward clarification of SDSP's soybean oil storage at Brewster. In the Air Quality arena, MnSP will be submitting additional information and clarification the week of Feb. 11 in response to the initial review and feedback we received from Minnesota Pollution Control Agency (MPCA) in late December. We have also started to prepare permits on the water side for MnSP, including an industrial wastewater discharge permit and two storm water runoff permits, one for the period of construction and one for the time MnSP is in operation.

Rodney Christianson
CEO, Minnesota Soybean Processors

First Annual Meeting Set for April 2, Windom

The First Annual Meeting of the Minnesota Soybean Processors will be held Tuesday, April 2, 2002, at the Community Center in Windom, Minn. The meeting will begin at 1:00 p.m., with registration beginning at noon. Members of record as of March 1 will be able to vote at the First Annual Meeting.

MnSP to Close Equity Drive April 2, 2002

On January 30, 2002, MnSP's Board of Directors voted to close the equity drive effective April 2,2002. Without Board action, MnSP's equity offering could remain open until $31 million is raised or until April 30, 2002. "To date, MnSP has raised over $29 million, well above our minimum target of $18.7 million," commented Bob Kirchner, Board President. "Also in April, the producer will be focused on planting his crop and not on value added ventures." The April 2 deadline gives the producer the last opportunity to make an initial investment or increase their investment and take in the first annual meeting all in the same day.

MnSP Requests Director Nominations

The equity drive of MnSP is rapidly coming to a close and MnSP is shifting into the development phase of its business. The First Annual Meeting of MnSP is scheduled for April 2, 2002. Members' responsibility at the first meeting will be to elect a full complement of directors to fill the 21-member Board. If you are interested in serving your cooperative and fellow district members, please submit your name and a short biography prior to March 4 2002, to

ATTENTION: NOMINATION COMMITTEE
Minnesota Soybean Processors
PO Box 100
Brewster, MN 56119

When MnSP's Board is fully established it will consist of 21 directors of which seven will be elected each year, one director from each district. One-third of the total Board or district representation could be changed in any given year. The goal is to provide a steady hand, consistent direction and experience in the governance of your business, and yet provide for the possibility of change as needed.

MnSP's business today has been guided by 10 directors; therefore a minimum of 11 new directors are sought. Following the guidelines that one-third of the Board stand for election each year, three of the existing directors will stand for election this year, four in 2003 and the remaining three in 2004. Existing directors were assigned to their appropriate district and then by a flip of a coin were chosen to have their current term end in 2002, 2003, or 2004. MnSP members will be electing 14 directors at the First Annual Meeting.

Directors elected in 2002 will be assigned to one-, two-  or three-year terms in their district based upon total votes received. The director with the most votes in a district will be assigned the longest term. Any ties will be broken by the flip of a coin. The following table shows the current districts' representations:
 
 

On January 30, 2002, MnSP's Board of Directors approved a plan to establish seven districts for membership representation. Bruce Hill, Board Secretary, chaired a task force to develop a proposal for full Board consideration. "In developing the districts, members' representation on the Board of Directors and therefore the governance of your cooperative were the key factor," said Hill. "The current Board's directive was to provide equal representation among MnSP's membership and diverse regional representation."

The six regional Districts are shown on the adjacent map. A listing of the counties that comprise each of the six regional districts is also included for your information. The seventh district will represent the total membership of MnSP. Districts will be represented by three directors serving three-year terms. Each member will have a voice in electing six of the 21 Directors, three in his/her regional district and three at-large in the seventh district. Your regional district is based upon the county where you reside, which may not be the same as your mailing address.

"The task force achieved the objectives of the Board. Five of the regional districts are very close in membership. The sixth regional District represents a smaller number of members but considering it also covers a larger geographic area we believe this was the right approach," commented Bob Kirchner, President.

MnSP's stated goal is to call for the remaining equity payment to be paid in three equal payments. During the last round of meetings, we had suggested the first payment may be as early as March, 2002. MnSP has had an opportunity to review the permitting, engineering, equipment procurement and interaction with city and county officials. At this time we are calling for the first 30% payment to be due June 1, 2002. You will receive a billing for this amount 30 days in advance.

Robert Kirchner. Robert graduated from Fulda (Minn.) High School. He and his wife Charlene have four children, Kevin, Michelle, Lisa, Steven; five grandchildren, and they farm near Brewster. He currently serves on the Minnesota Soybean Research and Promotion Council, the Agricultural Research Utilization Institute (ARUI), and the Nobles County Zoning Board of Adjustments. He is a member of the Soybean and Corn Growers associations, Brewster American Legion, and Sacred Heart Church. Robert graduated from Southwest State University, Marshall, Minn., with a B.S. in Business. Ron Obermoller. Ron graduated from Brewster High School, Worthington Community College, and South Dakota State University. He and his wife Karen have two children, Melissa and Jon. He has served as President of the Nobles County Corn and Soybean Growers from 1996 to 1998, and currently serves as State Director for the Minnesota State Corn Growers Association. Ron also participates in many community activities including The American Legion and All-School Reunion Committee. He belongs to Trinity Lutheran Church, where he has served as Treasurer and is currently serving as the Finance Secretary. He is an adult leader with the 4-H organization, and he also has worked with the Livestock Judging Team. Ron graduated from South Dakota State University in 1974 with a B.S degree in Agronomy and Animal Science. Bruce Hill. Bruce graduated from Okabena (Minn.) High School. He and his wife Mary have three children, and they farm near Worthington. Bruce attended two years at Worthington Junior College before serving four years in the United States Air Force. Bruce is a graduate of Dunwoody Institute, Minneapolis. Bruce is a past director of the Minnesota State Corn Growers. Paul Henning. Paul has been a life-long resident of the Okabena-Lakefield area. He has been engaged in livestock and grain farming the last 31 years. Paul has served on the Co-op Ag Center Board, Jackson County Pork Producers, and the Jackson County Corn Growers. At present, he is on the committee for the Minnesota CornCob Open, Clerk of West Heron Lake Township, and on the finance board of Our Redeemer Lutheran Church. He is a member of the Jackson Corn and Soybean Association, the Jackson County Pork Producers and the Okabena Community Club. Darol Schmitz. Darol has farmed since graduating from Brewster High School in 1972. He farms in partnership with his three brothers, Duane, Larry, and Randy. He is active in the Nobles County Corn and Soybean Growers and in the parish council at his church.

Bill Fest. Bill graduated from Heron Lake (Minn.) High School. He and his wife Marilyn have four sons, Kelly, Paul, Mark, and Tom, and farm near Heron Lake. Bill is currently a member of the Minnesota Corn Growers, Minnesota Soybean Association, Farmers Union, and the Farm Bureau. He currently serves as President on the North Heron Lake Game Producers Association. He belongs to the Catholic Order of Foresters where he participates in the choir. Bill is the past President of the Heron Lake Elevator Board. He served on the advisory board of the ethanol plant in Bingham Lake, and has been a member of the Jackson County Soybean Board for the past nine years. Bill is a Korean War veteran and spent 11/2 years in the Navy during that time. Steffen Van Westen. Steffen graduated from Sibley (Iowa) High School in 1976. He and his wife Ida were married in 1981 and have three children, Stacy, Becky, and Brandon. They started their own farming operation in the Reading Minn. area where they raise corn, soybeans and alfalfa and have diversified livestock around the farm. He is very active in the Church of the Brethren, and is an adult leader in the 4-H program. Steffen serves on the Reading Community Center Board, is a member and past treasurer of the Nobles County Pork Producers, and is a member of the Minnesota Soybean Association. LeRoy Kellenberger. LeRoy graduated from West Lyon High School in Inwood, Iowa. He and his wife Lou have four children and farm near Beaver Creek, Minn. He currently serves on the Minnesota Soybean Growers Association board, and has served as President for one year in the past. He also has served on the Hills Coop Elevator board of directors for six years. LeRoy has been farming for the past 28 years. Greg Nieuwendorp. Greg has been a lifelong resident of the rural Sheldon, Iowa, area. After graduating from Western Christian High School, he completed a course in farm management at Northwest Iowa Community College. He and his wife Cheryl have four young children, Nathan, Andrew, Shanell, and Luke. Greg has been farming for several years, raising livestock and grain. He and his family are members of the Sheldon First Christian Reformed Church. Greg has served as a junior board member at the Midwest Farmer's Coop, and he also served for six years in the Iowa Army National Guard. David Bunde. David graduated from Stewartville High School, and has farmed since 1967. He is married to Judy, has five children, five step-children, and five grandchildren. He has served on the building committee for St. Bernard's church and is a member of the corn and soybean growers.

Here is a brief summary of action on the biodiesel legislative front both in the Upper Midwest and nationally:

Minnesota: Thanks goes to all of the MnSP and SDSP Minnesota members who either contacted their state legislators or attended meetings with them. Together MnSP and SDSP have 2,130 members residing in Minnesota. Minnesota Soybean Growers Association (MSGA) sponsored 15 meetings with Minnesota State Legislators. Working with MSGA, over 200 soybean growers took the opportunity to express their support for a 2% biodiesel content requirement in diesel sold in Minnesota. Minnesota has the best odds of getting the job done in 2002! But we will not be successful if we are on the sidelines. Recommended action items:

1. If you have not, contact your state senator and state representative (each voting member of the family should make an individual contact).

2. Ask two neighbors, not members of MnSP or SDSP, to do the same.

3. Ask family and friends living in the Minneapolis Metro Area to call their representative and senator and express support for the 2% biodiesel content requirement in diesel fuel sold in Minnesota.

South Dakota: Representative Jim Peterson from Revillo and Senator Larry Deidrich from Elkton were sponsors of a bill to require the inclusion of biodiesel in dyed fuel in South Dakota. The House took the lead on the biodiesel legislation. Representative Peterson was successful in shepherding the bill out of committee with a DO PASS recommendation, but the bill lost on the House floor. The best strategy today is to push for biodiesel to be taken up in one of South Dakota's summer legislative studies. The summer study objectives would be to develop a bill for next year's legislative session and gain a wide base of support. South Dakota residents please contact your representative and senator and ask for their support to continue work on biodiesel.

Federal: Our latest search of activity on the federal level shows five Senate and nine House bills that address the use of biodiesel. There is a lot of interest in bio-renewable energy sources. To be successful, our legislators need to hear from us. Express your support for biodiesel:

1. For the biodiesel industry to get started, like ethanol, the industry needs to be supported by a bio-renewable content requirement or incentives.

2. Biodiesel is good for the United States energy policy and the environment, and is good farm policy.