A message board spans the entire wall of Larry Swalheim’s office, tracking dozens of names and appointments and, for handy reference, a variety of ways to enhance producer profitability and exceed customer expectations. The CEO of Landmark Services Cooperative (LSC) is, by definition and necessity, a multi-tasker who closely corresponds with all involved in the co-op, establishing tight bonds while trying to have the right answers at his fingertips.
He also has posted a register of hauling, transportation, and fuel figures, and a tally of management and member names and locations. A quick scan of the pamphlets on his desk reveals Swalheim’s and farmers’ parallel interests — animal nutrition, the future of fertilizer, and the reasons why not all diesel fuels are alike. Keeping track of all this is not limited to message board reminders, but also includes daily meetings with managers and employees and the farmers they serve.
“Farmers are the backbone of the business,” he acknowledges, “though we serve both rural and urban customers.”
Founded in 1933 and headquartered in Cottage Grove, LSC combines more than 150,000 members, 400 employees, and six retail divisions: agronomy, animal nutrition, energy, grain, retail, and transportation. The cooperative reported more than $333 million in revenues in 2008, making it one of the largest co-ops in Wisconsin.
Size isn’t everything, however; catering to agrarian interests is much more important. Swalheim explains that members of LSC sell what they harvest, purchase from bulk quantities what they need to operate, and receive patronage checks allowing them to share in the organizationÃÂÂÂs profits. The co-op offers feed, grain, and fuel, and sometimes even food and hardware.
Persistent nationwide economic dilemmas compel Swalheim to make day-to-day adjustments to the company’s budget and business plans. Nonetheless, he remains prepared and optimistic for 2009 while drawing déjàvu parallels between the misfortune of days past and our present financial strains.
“What’s interesting,” said Swalheim, “is that Dane County farmers came together in 1933 to pool their money and get discounted rates on fuel. Farmers were being charged outrageous prices for diesel fuels and gasoline. We grew out of the good foresight of farmers to band together during tough economic times for the benefit of all.
“Today, in equally challenging times, farmers still see those discounts when buying cooperatively,” he added.
Swalheim’s daily objectives are to not only enhance producer profitability and meet customer expectations, but to keep “every division going strong.” His philosophy is that a co-op system succeeds on a strong blend of cooperation and communication. “My most important everyday mission,” he said, “is to keep every employee here working.”
Bond Issue
At 60, Swalheim puts his years of experience to work overseeing six feed mills and millions of gallons of propane, and forging a strategic collaboration between LSC’s board of directors, management team, and members. During a rare break, he answers the phone. When he finishes the call with company president John Blaska, Swalheim notes, “Another big part of my day is meeting face-to-face with farmers or talking to them on the phone, basically keeping communication open. There’s more to it than just sitting across the table buying and selling. It’s a close bond.”
Swalheim’s everyday tasks not only include nurturing those bonds, but reaching out to form new ones. That means “many phone calls and e-mails and that I’m usually on the phone or Internet covering about three different things,” he explained. “I manage my day around all types and varieties of communication. Most of the day, I coach managers and meet employees. I work one-on-one with my managers, and I give them a great deal of responsibility. We assess and manage risks and make sure that they have what they need to be successful.”
Since Swalheim’s days are so fluid, he’s an interesting man to shadow. One minute he speaks face-to-face with a member about generating funds for productive and provident purposes. The next minute, he is on the phone discussing systematic production and marketing, and how best to develop expertise and skill among employees. IB looks over his shoulder as he answers an e-mail inquiry concerning bushels of grain and hedging expenses. His next e-mail addresses insurance and loss issues, and then it’s back to explaining the cooperative’s social, economic, and financial overviews with a curious manager.
Later this particular afternoon, Swalheim heads to one of LSC’s newest facilities, in Markesan, Wis., where he will meet with the hardware manager and the agronomy and feed divisions. Then it’s off to an employee dinner in Columbus, an event that includes a 401(k) planning session “so when it comes time to retire, our propane delivery guys don’t have to be working at 72.”
Perhaps Swalheim is equally comfortable in an office or on the farm because he was born the oldest of seven children on a farm near Cottage Grove. He attended Stoughton High School, followed by Luther College, where he graduated with degrees in history and sociology. Then he worked as a general manager at Sauk City Cooperative and Ellsworth Farmers Union Cooperative.
Moving on, Swalheim was grain marketing manager at Dane County Farmers Union Cooperative before becoming CEO at Dane County Farmers Union in 1991. (The union changed its name to Cottage Grove Cooperative in 1997 and to Landmark Services Cooperative in 2003.)
“I’ve always enjoyed my roots,” Swalheim said. “When I grew up, Cottage Grove was a town of 495 people. Now it is a much bigger community, one that’s become part of the east side of Madison. Most of what I remember is gone to urban expansion. Still, coming back to manage this place has been a dream come true.”
