Southern Minnesota Beet Sugar Cooperative

Kelvin Thompsen - President & CEO

Robert Strickland - Vice President Operations

Gary Cornelius - Factory Manager

Louis Knieper - Environmental Affairs Manager

Ken Dahl - Agricultural Superintendent

Clifford Mohs - Director Environmental Compliance

Southern Minnesota Beet Sugar Cooperative

Sustainability and Green Initiatives

SUSTAINABILITY At SMBSC the title “sustainability” is new but the concept has been in practice for some time. This is engrained in our nature as a family farmer owned cooperative. Sustainability is applied across four programs:

* Environmental Footprint

* Energy

* Community

* Economics

SMBSC is sustained with these in balance.

Southern Minnesota

Beet Sugar Cooperative

SUSTAINABILITY at SMBSC

Environmental Footprint

Agriculture

* Soils

* Nutrients

* Varieties/Genetics

* Best Practices

* Transport

Southern Minnesota



Environmental Footprint

Factory

* Air Quality

* Water Quality

* Reduce

* Reuse

* Recycling

* Water Conservation

* Wetland Creation

Southern Minnesota



Energy

Company Initiatives

* Strategic Planning for Pile Site Location

* Energy Recovery

* Electrical Generation Onsite

* Renewable Energy – Biogas, Wind and Solar

* Facility Evaluation for Wind Farm Generation

* Feasibility Study - Biomass as Fuel

* New Natural Gas Boiler Permitted

Southern Minnesota



Community

Factory Community

Safety and Health

Training

Workforce Development

Area Community

Philanthropy

Support - Sponsorship

Participation

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Southern Minnesota



Economic

Contribute $17 million to the local economy in payroll

On average, $151 million returned to the shareholders who reside within the 11 county area

Estimated $1 billion impact on economy of Southern Minnesota

SMBSC Agricultural

Sustainability Todd Geselius

Vice President of Agriculture

April 19, 2013

SMBSC Sustainability

• It is important to remember that SMBSC is a cooperative

▫ Growers are the Company/Cooperative

▫ A little over 500 shareholder/growers

▫ Just under 300 full time employees

▫ Hundreds of cooperative and grower hired seasonal employees

SMBSC Ag Sustainability Practices • Cover Crop

• Nitrogen reduction since 2002

• OM Zone Mapper

• Use of starter

• PCC out to fields

• Tare dirt back to fields

• Reduced tillage

• Getting more from the same amount of land

• Disease resistant seed

• Crop rotation

• Synergy of using more than 1 practice at a time

• “4 R’s” – right place, right time, right product, right rate

• Ag Beet articles, 15 in 2012, 4 so far this year

• Global Positioning Systems

• Agricultural research

• Logistics study to minimize trucking miles

• Farmer fuel economy (large equipment vs. small)

• Pattern tile vs. outlet tile

• Seed treatments (pesticides and other grow enhancing treatments)

• Lower N soil test residual

• Manure usage

• Roundup vs. conventional herbicides

• Ag Practice Database

• Utilize Database to find what is working

• SB variety selection and improvements

• Windmill aeration to treat water at receiving stations

• MAWRC Board Member

• Annual watershed meetings

• Soil testing analysis program

• Harvest procedures

• Scalping


Ag Practice Database

• Ag Practice Database ▫ Voluntary collection of

agronomic practice information from growers

▫ Summarized annually and information sent back to growers about their fields and their farm


Agronomic Research • Six dedicated full-time people

• Annually spend $500,000 to $750,000 internally

▫ Variety trials

▫ Weed control

▫ Disease control

▫ Fertility management

▫ Harvest techniques

▫ Storage experiments

▫ Proprietary trials for

Seed companies

Crop protection companies

• Additional funds spent on outside research

Nationally and internationally recognized research team!


Cover Crop Program

• Keeps soil from leaving the field during windy days in the spring.

• Shelters small sugar beet plants from “helicoptering”

• Helps keep soil from eroding during heavy spring rains

• Small beet plants get off to a better start

• Results in a better crop at harvest


Cover Crop Program

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SMBSC Cover Crop Acres


Soil Testing Program • Soil testing is a key management technique

▫ You can’t apply the right amount of fertilizer if you don’t know how much is there when you start.

• Growers sample next years sugar beets fields

▫ Samples must meet certain criteria

▫ Samples are sent to a designated third party testing facility and analyzed

• Invoice for the analysis is sent directly to SMBSC

• Growers pay for the sampling

• SMBSC pays for the analysis


Nitrogen Reduction

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SMBSC Average Applied Nitrogen Over Time

• Many years of N management research (SMBSC and U of MN) has had a significant impact

• Since 2004 the average applied N / Ac has been reduced by 35 lbs N/Ac per year (115 lbs/Ac to 80 lbs/Ac)

• 35 lbs. N on 120,000 acres = 4.2 million lbs. less N applied annually

• Since 2004 Sugar/acre has gone up about 1500 lbs/ac


Organic Matter Zone Mapping

• SMBSC developed a program to create crop management zones based on Soil Organic Matter (OM) content

▫ Combines satellite imagery and years of small plot and whole field research trials

▫ Predicts zones within fields with similar OM content which can be managed appropriately

▫ Produces maps required for Variable Rate Technology (VRT) fertilizer application


Organic Matter Zone Mapping

• SMBSC holds a patent on this technology

• Allows SMBSC growers to utilize the International Plant Nutrition Institutes “4R’s” of fertilizer management at the “micro” scale ▫ “Right Source” at the

▫ “Right Rate” in the

▫ “Right Place” at the

▫ “Right Time”


Pop-up (Starter) Fertilizer

• Pop-up fertilizer is placed on top of the seed, or very close to the seed, at planting

• Allows for maximum uptake of the fertilizer – in the root zone

• Thus fertilizer rates with this method are typically ½ the rate of broadcast

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SMBSC No. of Fields with Pop-up Fertilizer Applied


PCC (Lime) Utilization

• SMBSC and University research has shown numerous agronomic benefits with the application of PCC

▫ Soil pH adjustment

▫ Soil tilth enhancement

▫ Root disease reduction

▫ Multiple year benefit from a single application

▫ Proven benefits for sugar beets, field corn, sweet corn, others?

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Acres with PCC Applied by Year


Harvest Procedures • Harvesting sugar beets correctly

is critical to factory efficiency

• Beets must be the proper temperature and with as little dirt as possible

▫ Stop when its too hot

▫ Stop when its too cold

▫ Stop when its too wet

• Beets must be properly scalped

▫ Crown of the beet has a majority of the impurities

▫ Removing impurities greatly enhances factory performance


Storage Management • Storage Management is critical

to success

• Some beets are in piles longer than they are growing in the field

• A variety of techniques are used to monitor and manage storage

▫ Weekly IR scans

▫ Temperature probes

▫ Weekly manual inspection

▫ Ventilation

3 types


Agricultural Education • Continuing Education (Growers and Staff)

▫ Certified Crop Advisor (CCA) Program

▫ SMBSC sponsored education and field days

▫ University sponsored education and field days

▫ Allied Industry sponsored events

▫ Watershed meetings

▫ Ag Practice Database summary

▫ Annual Research Reports - website

▫ Timely “Ag Beet” articles

15 in 2012, 7 so far in 2013


Agricultural Leadership • Leadership Roles

▫ AFREC – Minnesota Agricultural Fertilizer Research & Education Council – Board Member

▫ MAWRC – Minnesota Agricultural Water Resource Council – Board Member Discovery Farms

▫ SBREB – Sugar Beet Research and Education Board of Minnesota and North Dakota – Board Members

▫ BSDF – Beet Sugar Development Foundation – Board Members

▫ ASSBT – American Society of Sugar Beet Technologists – Board Members

SMBSC Agricultural Sustainability • Ag Practice Database

• Agronomic Research

• Cover Crop Program

• Soil Testing Program

• Nitrogen Fertilizer Reduction

• OM Zone Mapping

• PCC (Lime) Applications

• Harvest Procedures

• Storage Management

• Continuing Education

• Agricultural Leadership

Creating a better future!

SMBSC Agricultural Sustainability

Questions?


SMBSC Far Exceeds Annual Phosphorus Offset Requirements Southern Minnesota Beet Sugar Cooperative (SMBSC) is committed to protecting the environment. One of the ways SMBSC has demonstrated this commitment is by meeting or exceeding the phosphorus offsets required by its National Pollution Discharge Elimination System / State Disposal System Permit for twelve consecutive years. While phosphorous is a naturally occurring element vital for plant and animal growth, too much phosphorous promotes excessive algae and plant growth in natural waters, causing significant environmental harm. Phosphorous pollution comes from a variety of sources including industrial and municipal water discharges as well as storm water runoff from lawns, fields and feedlots. Phosphorous pollution is a great concern for health of the Minnesota River, Lake Pepin and the Gulf of Mexico, all down-stream from SMBSC. Pollutant offsetting provisions of the NPDES/SDS permit is a pioneering solution that reduces phosphorous pollution in the Minnesota River watershed. Under the offsetting program, SMBSC has facilitated the reduction of 150,000 pounds of phosphorus into the Minnesota River Watershed by creating incentives for farmers and cattle ranchers. Each year SMBSC funds projects that protect and improve water quality, like phosphorous retaining cover crops, drain tile screens and fencing to keep animal waste and activity from streams. The MPCA reviews and certifies the projects to determine the total amount of phosphorous pollution that has been averted. SMBSC’s efforts and successes in reducing phosphorus pollution have been recognized by Citizens United for River Environment, C.U.R.E. a citizens group working to maintain and restore river health in Minnesota. The United States Environmental Protection Agency has also referred to SMBSC’s efforts in phosphorous reduction as an example for others to follow.

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Water Quality Trading - Phosphorus Credits Versus Amount Discharged

Permit Required Active Credits MPCA Approved Active Credits

Permit Discharge P Limit Total P Discharged

Southern Minnesota


SMBSC is also referenced as a model in US EPA nutrient trading manual and was

invited to the 2013 FBEC meetings to present nonpoint source nutrient trading

Southern Minnesota


Factory Impact Reduction

Wetland Development

30 Acres on Facility Lands 75 Acres in Local Area by 2016


• 180 tons per year emissions reduced with

installation of steam pulp driers


• 180 tons per year emissions reduced with

installation of steam pulp driers


Southern Minnesota Beet Sugar

Cooperative

• Wastewater treatment plant processes 2.5+ MGD

• Anticipate discharge increased to 3.6 MGD 2014



H2S Emissions



Pond Water Conductivity


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• By-product conversion

Dirt to topsoil; rocks to road base material

• External water reuse opportunities

• Treated water storage pond

• Sulfur Stoves

• Landscape berms

• Precipitated Calcium Carbonate


5.81 5.68

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Therms per cwt.


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Union Agreement

• Negotiated a five year Union Contract

• Strong relationship with Union

• Open door policy


Southern Minnesota


New natural gas powered boiler to drive factory

generator replacing electricity from grid.

Renewable Energy

Southern Minnesota


Biogas heaters at WWTP use anaerobic

reactor methane to heat wastewater feed

Renewable Energy

Southern Minnesota


Wind Powered aeration for storm water treatment at pile sites

Sustainable Factory Community

Southern Minnesota


• Worker Health and Wellbeing

oFlu shots & Blood Pressure Testing

oEmployee assistance plan including onsite counseling for tragic events

oPhysical therapy / ergonomic reviews

oHearing tests

oRespiratory/pulmonary function tests

oDriver awareness training

oCrisis management plan

Sustainable Factory Community

• Employee Safety - Beyond OSHA

o IMPACT – behavior based safety program that encourages employee participation and ownership/culture

oHigh visibility program

oCode Blue Team and fully equipped first aid room

oSafety and health audits by insurance carrier for continuous improvement efforts

oSafety director attends local quarterly safety meetings coordinated by MN Safety Council and other opportunities to network with local industry.

Southern Minnesota


Sustainable Area Community

• Neighborhood Wellbeing

oCity of Renville obtains waste heat for their sewer and Minn-Aqua Fisheries

oPartnership with local medical facilities, first responders, sheriff and fire department

oMulti organization drills including all local responders – planning another in 2014

Southern Minnesota


Mock Disaster Drill

Southern Minnesota



American Cancer Society

Southern Minnesota


5K Running to a Sweet Beet – 5K

Remembrance Balloon Release


American Cancer Society

Sponsors food booth for Renville County Relay for Life

Onsite bake sales

Onsite raffles

Daffodils for local patients

Southern Minnesota



Southern Minnesota


SMBSC sponsors and participates in area events including parades,

festivals, kid events, and county fairs


Polar Plunge for Special Olympics

Southern Minnesota



Education

Southern Minnesota


Pro-Ag Field Day

SMBSC annually awards six scholarships to shareholders’ and employees’ family

members continuing their education.

State Fair Board


*March of Dimes

*Renville Health Services

*Heartland Express

*Holiday Meals

*Renville County Food Shelf and Santa’s Closet

*Community Equipment needs Renville, Chippewa, Redwood, Swift and Yellow Medicine Counties

Southern Minnesota



Kelvin Thompsen - President & CEO

Robert Strickland - Vice President Operations

Gary Cornelius - Factory Manager

Louis Knieper - Environmental Affairs Manager

Ken Dahl - Agricultural Superintendent

Clifford Mohs - Director Environmental Compliance A Sweet & Sustainable Future

Southern Minnesota Beet Sugar Cooperative

Documents