NEW Directions June 2017 : Page 2

This spring and summer has certainly been a time of continued growth for your Cooperative. The positive side effect of the changes and growth NEW is experiencing right now is a renewed focus on increasing efficiencies and expense control across all NEW locations, as well as continued strategic prioritization of all projects and investments. Your Board continues to work very hard to ensure each project and investment will produce positive returns and add value to your operations, while also improving our service level to you, our member-owners. Driven by increased yields and business growth, there are currently six grain projects in process across the company that address storage capacity, receiving, and drying needs. These projects are currently ahead of schedule thanks to the great weather this spring that has allowed construction to progress quickly. It is expected that all of these projects at the Humboldt, LuVerne, Barnum, Lohrville, Lanyon, and Rowan locations will be operational by September 1st and ready to handle what we hope will be another large harvest. While this spring’s weather was beneficial for our construction projects, it certainly wasn’t entirely without a storm or two. The severe storms that passed through NEW territory on May 16th and 17th caused damage at seven of our locations due to high, straight-line winds. The worst damage occurred at Duncombe, Otho, and Knierim. Repairs are currently in place to get these facilities back to normal operation as quickly as possible. Our feed department continues to grow at a rapid pace, setting a one-month record in May of over 100,000 tons of production. Shortly, our new mill in Pomeroy will be operating at full capacity, and our latest mill project in Rowan, continues on pace for a June 2018 start-up. Once complete, our feed business will be producing over 1.5 million tons of feed annually, utilizing over 36 million bushels of corn produced by NEW members. External growth is also occurring across NEW this summer. Two strategic expansion opportunities became available earlier this year resulting in the purchase of Platinum Grain, LLC, near Anthon, and Berne Cooperative in Ute. Platinum Grain, LLC, has a very efficient, modern facility that was built in 2012, with expansions in 2014 and 2015. The elevator is located nine miles southwest of our Correctionville location and stores three million bushels of grain. This facility will work in conjunction with several locations NEW operates nearby to move grain as efficiently as possible to both local and rail markets. NEW will begin operations at Anthon on September 1st, at which time all grain contracts and storage agreements will be transferred. Berne Cooperative, headquartered in Ute, with another elevator location in Mapleton, will become part of the NEW family on August 1st. They bring a strong grain, agronomy, and petroleum business to our company with substantial volumes. Ute, located eleven miles south of our facility in Mapleton, brings a strong history and customer base, and will operate well alongside our other locations in that area. continued on next page "the positive side effect of the changes and growth NEW is experiencing right now is a renewed focus on increasing efficiencies and expense control across all NEW locations" NEW DIRECTIONS { 2 } JUNE 2017

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