1. CONS/DER IHIS
Pe"fecting
Business-
Mork Berg under-
stonds lhe business-
lo business relc:fion
beller lhon mosi.
the siLr-ration from both sides? You'll find a detailed
analysis of that relationship in these pages, along
with some sage advice from a young businessman
r'r,ho knorvs the customer extremely well-
"Evervbody must have the opportunity
Lo make money."
Sounds like advice we all can use
R*
Feiiow dealers, meet Mark Berg, one of
you who has taken the necessary steps to
bridge the sometimes considerable gap
between customer and dealer, grower and
retailer, small businessman and world-travel-
ing spokesman for Arnerican soybeans in par-
ticular and American agriculture in general.
We met Mark at a crop protection field
demonstration in Minnesota on a rainy July
day. He was the star of the show, the reigning
president of ASA's 30,000-plus mem-
bers. But, he informed us, he rvas also
an independen{ dealer.
Who better to describe the business-to-
business relationship that deterrnines
_your financial health than one r'vho sees
to-Business
RsmrroNSrilP
Y iJ."?::fi '1
l"iTlT,?"* l",il;
That's a farmer gracing our cover.
That's also a dealer. And it's also the pres-
ident of the American Soybean
Association (ASA).
Rob Wiley

2. Understanding
rHE Business - to - Business
REuquoNSHrP
s American agriculture becomes more
sophisticated and technical, the rela-
tionship between dealer and farmer
grows even more crucial.
As long-standing businessmen, most deal-
ers fully understand and appreciate the
business-to-business aspect of American
capitalism. Dealers have become a vital part
of the agr:icultural infrastructure, occupying
perhaps the most vital rung on the distribu-
tion ladder from basic manufacturer to the
farmer and, ultimately, to the consuming
public.
A dealership may be considered a "small"
business for various reasons, but the laws of
supply and demand, profit and loss apply
equally to them as they do to major interna-
tional conglomerates.
If the basic manufactur:er who supplies
materials to the distributor is to profit, so
must the end user. If the distributor who
supplies prbduct to the dealer is to profit, so
must the end user. If the dealer who pro-
vides products and serwice to the farmer is
to profit, so must the end user.
That end user, the farmer, who supplies
food and fiber to American and world con-
sumers must profit if the system is to work
at all.
Those are basic economic facts, and deal-
ers understand them well. For any one link
in the chain to profit, all links must receive
an adequate return on investment.
For the system to work at peak efficiency,
however, every lilk in the chain must also
grasp and accept the idea of profrt. If the
distributor doesn't profit, the dealer is left to
deal directly with the basic manufacturers,
who are not set up for the task. Ifthe dealer
doesn't profit, the grower must deal directly
with distributors or manufacturers, and
probably pay more for his inputs because
those organization's overhead would
increase dramatically.
Farming itself must lose its image as a
pastoral interlude and must accept its role
as a major business in the American econo-
my. Farmers must accept their roles as busi-
nessmen, much as dealers have, out to make
a profit on their products - crops - and take
care of their most precious raw material, the
land.
Their importanee to the American econo-
my is obvious in any story or research on
international
trade. The only
consistent
trade surplus
comes from
agri cultural
products, a
direct tribute
to the ability of
,U.S. farmers -
and their busi-
ness partners.
Farmers for
the most part
understand
that everyone
in the chain
wants them to
prosP€r,
because with-
out them, the whole system fails. They may
sometimes forget the business-to-business
part of the equation that calls for profit on
all sides.
DsALpn & Appucaron magazine found a
unique individual who firlly understands all
the ramifications of that business-to-busi-
ness relationship - Mark Berg, South
Dakota dealer and farmer who is cunently
serving as the president of the American
Soybean Association. We invite our readers
to comb Mark's thoughts on different seg-
ments of the business chain.
His underlying message: *The dealer has
to make sure there's an income out there for
the producer."
By Rob Wiley, Editoriol Director
Mork Berg weors
of leosf fhree
hots: deoler,
{ormer ond cor-
porote citizen os
the Americon
Soybeon
Associofion pres-
ident.

3. Dealer
Mark
Berg
"EverYbodY
lulusrrruu
opportqto makd
hen Mark
Berg
re ceive d
his degree in ag
engineering from
South Dakota State
University in 1979, he
had a ready-made career
waiting on the family farm
just outside Tripp, South
Dakota.
He wanted more.
The family farm, in the capa-
ble hands of father William,
was self sufficient, growing
corn and soybeans, some win-
ter wheat, and housing a few
stock cattle on around 1,600
acres. The Bergs did their own
spraying with several SPra-
Coupes.
The Coupes gave Mark an idea
for a second business - Providing
application service to his neigh-
bors.
From that idea sprang
Berg's Ag Service, a deal-
'Whotever it fokes for lhe producer to moke money is {ine with me''
- Mork Berg
ership specializing in crop protection chemi-
cals, seed and serrrice, with healy emphasis
on the service. The company does not deal in
fertilizer.
And Mark Berg also found time to actively
participate in the family business, the farm,
and even take on considerable extracurricu-
lar activity on'behalf of the American soy-
bean grower. Berg currently serves as presi-
dent of the American Soybean Association
(ASA), a position heavy on travel and
responsibility.
At its peak, Bergls Ag Service took care of
some 40,000 acres, including about 12,000
acres of Nebraska winter wheat Berg would
spray before the South Dakota ground
thawed. The added responsibilities of the
ASA position, however, forced some hard
decisions on the 41-year-old Berg'
"When you commit to something Iike the
ASA, the unfortunate thing is you have to
give up something else," Berg says. "Custom
application is where I decided to cut back,
because I'm not around enough to monitor
the business. I feel more comfortable not
running all the acres.
"I do plan on popping back up again as
t-
iE
t5

4. soon as my involvement with the
Association is done."
In the meantime, younger brother Mike
manages the dealership; all 3 Bergs remain
active on the farm.
Berg's Ag Service runs 5 application
machines: a Big A, 2 John Deere high clear-
ance sprayers and 2 Melroe Spra-Coupes.
Service-Oriented
Mark Berg, who earned his Certified Crop
Advisor (CCA) certif,rcate, has a firm grasp
on what farmers need from dealers and
what dealers should provide.
"Really, a dealership should be a problem-
solving entity for the grower," Berg says.
"Ihat's the value of technolory such as yield
monitors; the more information the dealer
e the
n itY
money."
has, he more we can help the grower. If
there are problems in a field, we're there to
help solve those problems."
Berg didn't name his business Berg's Ag
Service on a lark; he's based the company's
reputation on its ability to provide constant
and usefrrl service to its customers.
Before spraying a field, Berg or a company
employee will scout the freld beforehand,
noting precise problems and basing the
chemical recommendation on that first-hand
knowledge. If there's a problem with a field
or a complaint, Berg treats it as an opportu-
nity to spend more time with the customer.
If gettiirg the CCA license helps his busi-
ness and his customers, he'll do it.
"I don't know if the CCA has given me aly
more of a knowledge base, but it makes me
conscious of the need to keep my knowledge
base at a certain level," Berg says. "The
recertification process helps keep me up-to-
date on the newest technolory coming down
the tube. It helps from a sales standpoint,
too, because there are some dealers out
there who aren't CCAs. You can position
yourself a little better with the license."
The CCA license is a voluntary program
aimed at improving the professionalism of
anyone involved in recommending pesticide
and fertility programs to farmers.
For a change, Berg says, the industry took
positive action before the government
passed legislation requiring something more
stringent and expensive.
"It doesn't matter if I wear the producer
cap or if I wear the ASA cap or my dealer
cap, if we can be more pro-active on the
issues dealing with the environment, we can
position ourselves in a very positive light for
the long term," he says. "I think being pro-
active is very important."
Business-to-Business
Having a foot in both business worlds -
farming and ag retail - enables Berg to see
the relationship with open eyes. He has a
feel for what both sides need and what both
sides can realistically provide the other.
His recommendations as a dealer, for
example, carry a little extra weight because
of his farming experience. His growers see
him as one of "them."
"I can actually try products and programs
on my helds," Berg says. "Basically, we're
running test plots on our fields. From a busi-
ness relationship standpoint, that gives us
some credibility. I can say I've tried these
three chemicals and these three hybrids,
and based on what I saw in our fields, this is
my recommendation for your fields. That's
very beneficial."
And even though many dealers may not
have that advantage, there are ways they
can improve the business-to-business rela-
tionship.
"It's very important to always build on the
people relationship," Berg says. "Make sure
you continue to monitor that grower's fields.
If there is an application or cher,nical prob-
lem, the best thing you can do is go out there
immediately. That grower may unload on
you, but by the time the conversation is fin-
ished, you should be in agreement on how to
solve the problem.
"Nobody's really harmed, but the grower
really appreciates your taking the time to go
out and listen to him. If you let him sit and
fester, hell start tel-Iing his foiends that you
took his money, sprayed his fields and now
don't care about him an;,tnore."
All in all, Berg says, farmers generally
have a solid respect for their dealers-
"As a whole, at least in my part of the
world, growers trust the dealer a great
deal," he says. -fhey value the dealers rec-
ommendation on chemicals and other
aspects of their businesses. If the dealer has
his relationships built to the proper level, he
has the ability to steer the grower almost
where he wants to on a purchasing decision.
A grower never wants to be perceived as just
another number." -R.W. q
PROFIT TIP
Position
yourself as the
service and
information
leader in your
service afea to
atffact more
business.

5. Farmer
Mark Berg
for the
::.i]
' il n:.1
Ir:i
II
"The
DEALERneeds ro
b e s t dec
ark Berg the
farmer under-
stands the pressure
Freedom to Farm puts on
Mark Berg the dealer.
How can the dealer
plan his inventory
when his cus-
tomers may not
finalize their
planting
decisions
until the
week
before they hit the field?
As an active participant with father
William and brother Mike in a 1,600-acre
South Dakota farming operation, Mark Berg
knows firll well the first criteria for any agri-
cultural business decision: the grower has to
make money.
Anything that helps make that happen is
good; anything that hinders it is bad.
"Freedom to Farm was probably one ofthe
best things to ever happen to American agri-
cultural from the political arena,'Berg says.
"The grower can now make a decision to
grow what the end user wants. We were
making decisions based on what the govern-
ment allowed us to grow under previous
farm programs."
The latest farm bill stopped a
worldwide erosion in confi-
dence about the country's
ability to deliver its goods,
Berg says. And with ag
exports pegged around $60 bil-
lion a year, regaining that confidence
could very well mean the difference between
prosperity or a depressed ag economy that
would make the early 1980s look like a
picnic.
Allowing American farmers to grow
for the market sends the right mes-
sage to overseas customers, Berg
says. Those customers will continue
"The deoler con'f sell his cuslomers
somefhing for opples if he doesn'f
end up plontinn
"oo!;r,;o,t aurn

6. to buy American agricultural products if
they think they can depend on de1ivery.
And that spells good news for dealers, too,
even if it might add some headaches on the
inventory side.
Healttry Environment
"Freedom to Farm does make it difficult for
dealers," Berg says. "But what it comes
down to is this: for the dealer to have a
healthy business environment where he can
) make the
1O
151O n ^S
e
grower."
make money, the producer needs to make
money first. And to make money in today's
world, the producer needs the opportunity to
decide the most profrtable crop for him to
plant right up to the day of planting.
"If the producer is making the best deci-
sion to get the best net return for his partic-
ular farm on that day, that s really what the
dealer needs, too. That will make for a very
heal{,hy dealership."
Berg has helped run the family farm busi-
ness since graduating from South Dakota
State University in 1979. I{e has also owned
and managed Berg's Ag Service, a full ser-
vice crop protection and seed dealership-in
T?ipp, since 1983.
His perspective on the business-to-busi-
ness relationship, then, is necessarily broad-
er than most dealers and g::owers. He liter-
ally walks in both shoes and has first-hand
experience with the unique problems and
concerns ofboth.
For example, he does see some problems
at the dealer level from Freedom to Farm,
but there could be more serious concerns
higher up in the distribution chain. Basic
crop protection product manufacturers, for
example, usually make their products
months in advance based on projected
acreages for the various crops.
'No so long ago, some of the major manu-
facturers actually wanted growers to book
their products even earlier than usual,"
Berg says. "The reality with Freedom to
Farm is that's not going to happen. It really
will put pressure on the manufacturers to be
able to deliver products when the dealer
needs them instead of all at once before the
season begins."
Dealers and farmers working together can
make the new business scenario work for
both of them, Berg says, especially in his
area where the corn/soybean rotation will
still dominate. Throughout the Midwest,
farmers and dealers have grown accustomed
to pre-planning the crop season based on
those two major crops. It could come down to
a matter of adjusting inventory from one
type of products to the other.
Communications will drive the changing
business relationship between dealers and
farmers, with both sharing the responsibili-
ty of keeping the other business "partner"
informed.
'Growers will make their decisions later,
but they will have to make sure they convey
that decision to their dealer as soon as they
make it so he ean have the seed and chemi-
cals on hand when they are ready to p1ant,"
Berg says. "And the grower needs a dealer
who is aware of what products are available
for which crops, one who can monitor his
frelds and provide ag:ronomic advice when
needed. The grower does depend on the
dealer many times during the decision-mak-
ing process, so the dealer network has
become,more and more imporbant."
The Changing Farm
The Berg farming business has changed
much just since Mark Berg finished college
in 1979. The acreage - around 1,600 - is a
bit bigger, although the crops are the same:
corn, soybeans, winter wheat. Because of his
busy schedule as a dealer and as president
of the American Soybean Association (ASA),
Berg limits his active farm involvement to
harvesting and plantilg time. Dad William
does most of the marketing, with some help
from Mark and brother Mike.
"Our marketing is considerably different
today," Mark Berg says. "We look beyond
the local elevator more to see what's hap-
pening and try to negotiate our prices based
on the world market.
"The average farmer today has far more
knowledge about foreign markets than peo-
ple might think because those markets
i.nfluence prices daily. A grain purchase in
China or bad weather in Brazil influences
the market immediately. It's wise marketing
to know what s going on around the world."
Astute marketing has worked especially
with soybeans, Berg says. In just the last 5
years, U.S. growers have produced three of
the largest crops ever, yet demand remains
strong.
"And it s increasing 3 to 5 percent a year,"
Berg says. -R.W. u
PROFIT TIP
Maintain
inventory
flexibility to
accommodate
any late
planting
decisions.

7. President
Mark Berg
a year."
country to visit. Instead ofwhich applicator
to trade, Berg courts whole nations as poten-
tial trade partners for American soybeans.
Quite a step upward for a young business-
man from a small South Dakota town.
"You give up a lot back home when you
get involved in any organization," Berg says.
"But you can also gain enough as an individ-
ual and an industry to make it worth the
time and effort. The industry is much more
important than Mark Berg, ASA president."
Werghty Matters
In his role as ASA president, Berg has full
fiduciary responsibility for the organization.
He acts as the association's chief liaison
between the 26 a{Tiliated member state asso-
ciations. He spends considerable time in
Washington, D.C., representing his mem-
bership in all Congressional agricultural
policy debates. And he travels throughout
the world to help promote the sale of U.S.
soybeans to various markets.
The list of legislative issues alone is
impressive: NAFTA, fast track negotiation
authority, farm bills, environmental issues,
taxes that pertain to soybean farmers, clean
water, clean air, alternative fuels - virtually
any bill that would affect the way American
"The
GROWTH RATE,"
soybean
demand
is between
3 to 5 percent
o one would
ever describe
Mark Berg's
plate as half empty.
Not content with help-
ing manage the family
farm near Tripp,
South Dakota, Berg
started a retail dealer-
ship, Berg's Ag
Service. n
When his state soybean
grower association needed
organizing and membership
recruiting skiils, he respond-
ed with resounding results.
Those results led to more and
more involvement rvith the
national American Soybean
Association (ASA), where Berg
quickly ascended the leadership
ladder. He is now in the middle
of a year-long presidential term
which ends in August, followed
by a year as Chairman of the
Board ofDirectors.
Instead of which
seed to plant, Berg
now decides which
"The more reloiionships you con build, the greoter strength you con
bring to your industry." -Mork Berg

8. soybean farmers do business attracts Berg
and the ASA
Headquartered in St. Louis, Missouri,
ASA acts as the soybean farmers'grassroots
organization in Washington and in world
trading circles. Its approximately 31,700
members represent just about half of total
U.S. soybean acres. It is funded through
membership and corporate dollars and
maintains 13 international offices devoted
solely to promoting the use of soybeans in
some 100 countries. Sk of those are in the
Pacffic Rim area.
The international program is funded by
funds provided by the United Soybean
Board (USB), which oversees the national
checkoff dollars collected from all U.S. soy-
bean growers. Each gxower pays one halfof
one percent of his total crop value into the
fund, which the USB then allocates for vari-
ous activities, including university research,
domestic market development and promo-
tion and the international efforts managed
by the ASA.
*The national federally-mandated checkoff
started in 1991," Berg says. "When the
checkoff started, the national soybean crop
was valued at about $11.5 billion- Today, it's
valued at more than $17 billion. The growth
in value has been a continuous curve, so the
checkoffis working."
ASA will likely invest around $26 million
in international promotion and market
development in 1998, Berg says. Soybeans
cunently account for about $11 billion of the
more than $60 billion agricultural trade sur-
plus. Soybeans and soybean products are
the largest agricultural commodity exported
by the U.S.
"That gives us a big advantage in trade
negotiations," Berg says.
Primarily because of the trade embargo
imposed by then president Jimmy Carter in
the 1970s, American ag interests are always
suspect in the world marketplace, Berg says.
With so much of the soybean farmers' eco-
nomic welfare dependent on those markets,
the U.S. can ill afford any setback in world
trade.
The recent Congressional defeat of "fast
track" authority for the administration in
trade negotiations was such a setback, Berg
says.
"Our concern is that we have access to
those world markets," he says. "We need
those trade treaties negotiated where we
have access without quotas or tariffs. We
feel the defeat of fast track authority sent
the wrong message to our trading partners."
Berg points out that fast track authority
does not give the administration final say in
any negotiated trade pact or treaty. Rather,
it simply allows the administration to nego-
tiate a treaty which Congress will approve
or disapprove. Fast track authority keeps
Congress from adding amendments to the
proposed treaty once it reaches the
Congressional debate stage.
-Ihe U.S. president hasn't had fast track
authority since 1994, and there have been
more than 100 treaties negotiated in the
world since then," Berg says. "We have been
a part of very few of them. Most countries
don't even want to sit clown with us at the
negotiating table if they know Congress can
amend whatever agree-
ment is reached."
Building Coalitions
Whatever the issue, Berg
says, American agricul-
ture must learn to act as
an industry and not a
Balkanized collection of
individual segments. Part
of his duties as ASA presi-
dent includes getting the
states to act collectively
and to ensure the differ-
ent parts of the country
represented by associa-
tion membership act as
one.
Freedom to Farm has
made that part of his job a
bit easier.
"lt took the competition
away from the different
regions of the country,"
Berg says. "We're much
better now at looking at
what is best for the indus-
try instead of what is best
for the Midwest or the South. It has enabled
us to focus on the many things that are
more important to the industry as a whole."
Berg and ASA have even reached out to
foreign competitors, inviting representatives
from Brazil and Argentina to their meetings
and searching for common ground in pro-
moting the use of soybean products through-
out the world.
"It's important that the ag input industry,
the end user of our product and everybody in
between that we build these coalitions as
our numbers dwindle," Berg says.
"Hopefully, we can create an environment
that's healthy for everybody to prosper eco-
nomically. I view our neighbors in Brazil
and Argentina as no more competition to me
on an individual farm basis than my South
Dakota neighbors. It makes sense that if we
work together on some key trade issues that
we can have much more impact." -R.W. ql

9. soybean farmers do business attracts Berg
and the ASA
Headquartered in St. Louis, Missouri,
ASA acts as the soybean farmers'grassroots
organization in Washington and in world
trading circles. Its approximately 31,700
members represent just about half pf total
U.S. soybean acres. It is funded through
membership and corporate dollars and
maintains 13 international offices devoted
solely to promoting the use of soybeans in
some 100 countries. Six of those are in the
Pacffic Rim area.
The international program is funded by
funds provided by the United Soybean
Board (USB), which oversees the national
eheckoff dollars eollected from all U.S. soy-
bean growers. Each grower pays one halfof
one percent of his total crop value into the
fund, which the USB then allocates for vari-
ous activities, including university research,
domestic market development and promo-
tion and the international efforts managed
by the ASA.
"The national federally-mandated checkoff
started in 1991," Berg says. "When the
checkoff started, the national soybean crop
was valued at about $11.5 billion- Today, it's
valued at more than $17 billion. The growth
in value has been a continuous curve, so the
checkoffis working."
ASA will likely invest around $26 mill;on
in international promotion and market
development in 1998, Berg says. Soybeans
currently account for about $11 billion of the
more than $60 billion agricuJ.tural trade srrr-
plus. Soybeans and soybean products are
the largest agricultural commodity exported
by the U.S.
"That gives us a big advantage in trade
negotiations," Berg says.
Primarily because of the trade embargo
imposed by then president Jimmy Carter in
the 1970s, American ag interests are always
suspect in the world marketplace, Berg says.
With so much of the soybean farmers' eco-
nomic welfare dependent on those markets,
the U.S. can ill afford any setback in world
trade.
The recent Congressional defeat of "fast
track authority for the administration in
trade negotiations was such a setback, Berg
says.
"Our concern is that we have access to
those world markets," he says. "We need
those trade treaties negotiated where we
have access without quotas or tariffs. We
feel the defeat of fast track authority sent
the wrong message to our trading partners."
Berg points out that fast track authority
does not give the administration final say in
any negotiated trade pact or treaty. Rather,
it simply allows the administration to nego-
tiate a treaty which Congress will approve
or disapprove. Fast track authority keeps
Congress from adding amendments to the
proposed treaty once it reaches the
Congressional debate stage.
*The U.S. president hasn't had fast track
authority since 1994, and there have been
more than 100 treaties negotiated in the
world since then," Berg says. "We have been
a part of very few of them. Most countries
don't even want to sit down with us at the
negotiating table ifthey know Congress can
amend whatever agree-
ment is reached."
Building Coalitions
Whatever the issue, Berg
says, American agricul-
ture must learn to act as
an industry and not a
Balkanized collection of
individual segments. Part
of his duties as ASA presi-
dent includes getting the
states to act collectively
and to ensure the differ-
ent parts of the country
represented by associa-
tion membership act as
one.
Freedom to Farm has
made that part of his job a
bit easier.
"It took the competition
away from the different
regions of the country,"
Berg says. "We're much
better now at looking at
what is best for the indus-
try instead of what is best
for the Midwest or the South. It has enabled
us to focus on the many things that are
more important to the industry as a whole."
Berg and ASA have even reached out to
foreigrr competitors, inviting representatives
from Brazil and Argentina to their meetings
and searching for common ground in pro-
moting the use ofsoybean products through-
out the world.
"If,s important that the ag input industry,
the end user ofour product and everybody in
between that we build these coalitions as
our numbers dwindle," Berg says.
"Hopefully, we can create an environment
that s healthy for everybody to prosper eco-
nomically. I view our neighbors in Brazil
and Argentina as no more competition to me
on an individual farm basis than my South
Dakota neighbors. It makes sense that if we
work together on some key trade issues that
we can have much more impact." -R.W. eI
ASA (7 eeg-99)