CorporateResponsibilityReport 2016

“ Our dedication to doing what’s right does not stop with our market area.”

John ReifsteckChairman of the Boardand President

Throughout the GROWMARK System, we believe that as an industry leader, we must make it our mission to ensure our people and our corporate footprint are socially and environmentally responsible. That goal is ingrained in our company culture and guides everything we do. With each decision, we consider the impact beyond our people, beyond our market area, beyond our business.

We take our role of caring for the soil and other resources very seriously. We go to great lengths to apply business ethics, invest in communities, and engage our employees in activities that will protect the environment now and in the years to come. This report offers an overview of just some of the ways GROWMARK is demonstrating our commitment to corporate citizenship and responsible business practices.

Jim SpradlinChief Executive Officer

GROWMARK, Inc. is a regional agricultural cooperative headquartered in Bloomington, Illinois. One of the top four agricultural cooperatives in the U.S., GROWMARK is owned by local supply and grain member cooperatives. In more than 40 states and Ontario, Canada, we supply energy products, crop nutrients, crop protection products, seed, structures, equipment, and grain marketing services. The GROWMARK System supports its people and product lines with warehousing and logistics, as well as training and marketing support.

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Taking CareOur people step forward to make sustainable farming and business practices a high priority for GROWMARK.

“ It is all about MOM – Maximizing input utilization by Optimizing harvest yield and Minimizing environmental impact – which is a message that can be understood by everyone.”

Dr. Howard Brown Director of Nutrient Management and Environmental Stewardship

Dr. Howard Brown leads activities that make it possible for farmers to maximize their yields and protect water quality. His team is focused on using nitrogen as a management system rather than as separate applications. The “4R” approach to nutrient applications – Right source, Right rate, Right time and Right place – is a success-ful program that is helping farmers become profitable and account-able. GROWMARK partners with The Fertilizer Institute, Canadian Fertilizer Institute, International Plant Nutrition Institute, and International Fertilizer Association to carry the concept far beyond our market area.On the East Coast, the people of GROWMARK FS are promoting the 4R program to minimize the environmental impact of excess nutrients in the Chesapeake Bay area. GROWMARK is also an integral part of the Pennsylvania and Chesapeake 4R Alliances, which help agricultural producers use the 4R principles to adopt sus-tainable crop nutrient stewardship systems.

N WATCH is a management tool developed by GROWMARK to provide farmers a way to observe the behavior of plant-available nitrogen in the soil over time. The tool is being used at more than 600 N WATCH sites from western Iowa to southeast Ontario, making it easier for farmers to make a stronger com-mitment to land stewardship. “The N Watch program helps us meet our responsibility to assist our customers in taking care of the land and water,” Dr. Brown said.Much of the GROWMARK System service area borders the Mississippi, Missouri and Ohio River watersheds, so we pay spe-cial attention to water drainage. We work with farmers to miti-gate runoff from their fields and reduce erosion. GROWMARK

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ENDURE A GROWMARK sustainability initiative

The Endure Pollinator Seed Program is the first of many efforts falling under the umbrella of GROWMARK’s Endure sustainability program. Agronomy team members are working with member cooperatives to plant plots of wildflower seed mix to encourage honeybee population growth and to demonstrate the importance of pollinator species to agriculture.In Ontario, some of the farmer- owners of AGRIS Co-op are supporting the development of a new co-operative that is collecting cellulosic materials and crop residue from farmers’ fields to extract sugar. Baling corn stover to produce feed or ethanol is not a new concept, but members of the newly formed co-operative are taking it a step further by venturing into new end-user markets for the sugar extract.

plays varying roles in Nutrient Management Strategies through-out the Midwest – specifically in five states – by participating in policy discussions and delivering education at the farmgate.

The people of New Century FS, a retail unit of GROWMARK, were successful in getting two facilities certified by the ResponsibleAg program. The two facilities were among the first nine certified in the U.S. The ResponsibleAg program is a voluntary code of practice and third-party inspection processes to help assure all fertilizer retailers fully under-stand and comply with existing regulations. GROWMARK’s Kevin Frye and Lester Zmolek are certified to conduct and submit ResponsibleAg audits.

Our dedication to sustainable measures is not limited to the land. In business, we look for opportunities that have impact far beyond our core purpose and that support a circular economy.

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Taking Care

Our people are serious about keeping the work environment safe for employees and the public. GROWMARK supports a number of initiatives that promote safety on the farm, at the businesses we operate, and in the communities we serve. GROWMARK has an entire department devoted to safety education and implementation. The safety team is actively devel-oping templates and workshops to assist in implementing Process Safety Management (PSM) at all affected System locations. Their tools and resources include videos, manuals, online training, and software. Training covers railcar safety, confined space

entry, and tool safety. Safety schools address crop application, anhydrous ammonia handling, and hazardous waste operations. GROWMARK team members regularly participate in several safety-related organizations and continually upgrade their skill sets through continuing education activities. Timely inspections of energy terminals and distribution centers assure that GROWMARK facilities meet and exceed safe business practices.GROWMARK is also a sponsor of the National Education Center for Agricultural Safety, located at Northeast Iowa Community College – Peosta Campus.

The Farm Safety for Just Kids program was started in 1987 by an Iowa farm mother after the death of her son in a grain wagon. GROWMARK helps kids stay safe on the farm by providing support for this program, which is raising awareness of health and safety hazards in the rural environment where children live and play.

Taking care of the environmentAt GROWMARK, we believe shortening the distance between resources and their markets helps the environment. When our Canton, South Dakota propane terminal began full operation, the result was a closer fuel supply for our customers, fewer trucks on the road, and reduced emissions.

The GROWMARK Foundation funds programs that support education, the cooperative spirit, agriculture, community involve-ment, and youth and leadership development. Our decisions are based on activities and organizations that support GROWMARK’s objectives, mission, vision, and values.Last year, GROWMARK awarded $100,000 in scholarships to students in our 40-state service area and Canada. Following the devastating storms and flooding in Illinois, the Foundation made a donation to the American Red Cross to aid in recovery efforts.The Foundation provided more than $70,000 for Ag-in-the- Classroom programs to support ag literacy. The Midwest Food Bank also received financial support and volunteer time. Total Foundation donations in 2015 exceeded $900,000.

Paying Forward

Social responsibility is at the heart of our corporate culture. We work diligently to make a positive impact in the communities where we do business.

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GROWMARK employees and their families were among more than 450 runners, walkers and volunteers for the annual Bloomington, Illinois 5K Grow & Go annual event. This May event raises funds for Illinois Ag-in-the-Classroom and raises community awareness of agriculture’s important role in producing food and fiber. Through a collaborative effort, the GROWMARK Foundation and SEEDWAY discovered a unique tie to the fight against breast cancer. Growers purchasing Porcelain Doll pink pumpkin seeds from SEEDWAY agree to donate 25 cents per pumpkin sold to the Pink Pumpkin Patch Foundation, which in turns provides grants for breast cancer research.

At the 2015 Farm Progress Show in Decatur, Illinois, for every attendee who played the FS “Farming Forever” game, GROWMARK donated one dollar to Feeding America and the Midwest Food Bank.Helping other people when we can is the glue that holds small communities together, and volunteerism is encouraged throughout the GROWMARK System. Our team members volunteered hundreds of hours of their time in 2015. More than 20 different organizations were served – from community groups to youth programs to church-affiliated activities and disaster relief.The people of GROWMARK took time in October to observe National Disability

Employment Awareness Month with a tour of Bloomington-Normal, Illinois’ Marcfirst, whose mission is to connect families and people with developmental disabilities to their community. Theme posters were displayed all month and employees were invited to volunteer at the Marcfirst’s staff party.

The people of GROWMARK’s Energy Division are educating school districts across our core market area about the advantages of adopting propane-powered buses.

Paying Forward

GROWMARK’s use of propane autogas fuel is contributing to cleaner air in school yards, better operating efficiency for school districts, and quieter buses for school children.As part of our effort to show respect for the communities in which we operate, GROWMARK works to minimize our environ-mental footprint. The residents of Jefferson, Wisconsin have a quieter community now that noise- abatement equipment has been added to newly constructed grain bins at Insight FS. While the town does not set maximum decibel levels, Insight FS chose to install exhaust fans directed toward the ground which absorbs much of the noise.

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Paying ForwardThe people of GROWMARK participate in activities that have a direct effect on communities – not just in our service area, but around the world.SEEDWAY, a subsidiary of GROWMARK, donated vegetable seed for distribution in developing nations by partnering with Seed Programs International. Seed is being distributed in Ethiopia, Liberia, and Madagascar, where the majority of the population survives on less than $2 per day. GROWMARK supports a number of youth education and leadership programs that instill cooperative values in the next generation. In the U.S., we are a major supporter of 4-H, FFA, and Agriculture Future of America (AFA).On the East Coast, the people of GROWMARK FS actively support local FFA chapters by sponsoring a number of activities, including judging at the state FFA convention. Each year, GROWMARK FS supports the FFA Foundation

auction by buying animals sold at the state fair and then donating the livestock back to the chapter to resell. Last year, the members of the Milford, Delaware FFA Chapter reciprocated by decorating the Christmas trees at GROWMARK FS offices.The GROWMARK Foundation helps fund the FFA Essay Contest in Illinois, Iowa, Wisconsin, and Missouri and the 4-H Essay Contest in Ontario. The contest encourages students to learn about current issues affecting agriculture and to understand the unique role of cooperatives. The Ontario Co-operative Young Leaders program provides training and sends about 200 kids each year to leadership and training programs. In Ontario, GROWMARK and UPI Energy LP have been the sole sponsors of the 4-H Ontario

Ambassador Program. This year marked the program’s tenth year of success in introducing and developing more than 50 4-H Ambassadors in Ontario. Each year, five or six senior 4-H participants are chosen to travel the province for one year to promote 4-H at local trade shows and other venues. At GROWMARK’s annual meeting in Chicago, we host youth representatives from the Ontario Co-op Young Leader Program, Junior Farmers Association of Ontario and 4-H Ontario. State FFA officers also attend. These young leaders enjoy hands-on learning and networking experi-ences that introduce them to the GROWMARK System’s work. GROWMARK’s robust internship program attracts the brightest and most dedicated students for summer employment that offers practical experience in their fields of study. In 2015, more than 60 students from across North America worked at GROWMARK headquarters and our member cooperatives.

OUR VISIONTo be the best agricultural cooperative system in North America.

OUR MISSIONTo improve the long-term profitability of our member-owners.

OUR FOCUSTo develop and deliver leading edge products, services, knowledge, and technology through high level expertise and strategic assets.

1701 Towanda AvenueBloomington IL 61701(309) 557-6000

www.growmark.com

©2016 GROWMARK, Inc. 2016MA

In keeping with the spirit of conserving natural resources, this Corporate Responsibility Report is printed in a limited number, with the bulk of requests for copies being filled through on-demand digital reproduction.