When flooding almost crushed an agribusiness, this lender believed in its future
July 8, 2024
This paid piece is sponsored by The First National Bank in Sioux Falls.
The year was 2019, and flooding was rampant across southeastern South Dakota.
It started in the spring with heavy snowfall, followed abruptly by a quick snowmelt.
And if that wasn’t enough to derail the state’s No. 1 industry, severe storms in late summer caused record flooding in agricultural communities such as Dell Rapids.
For Dave Ellens and Rob Thuringer, co-owners of the local ag retailer Lakeco Crop Services, it was a worst-case scenario.
Rob Thuringer and Dave Ellens, co-owners of Lakeco Crop Services
“It was our second year in business,” Ellens said. “We didn’t even know if we were going to sell a bag of seed. We didn’t know if we would be able to pay ourselves. It was a tough year for us.”
“We both had kids born that spring,” Thuringer said. “Nothing was going out the door. It was absolute misery. I remember sitting in the living room with my wife trying to decide what do we sell first. And, where am I going to get a summer job?”
The business partners and former college roommates launched Lakeco Crop Services and built their warehouse — located along Highway 34 near Wentworth — in 2017.
And suddenly, the business they’d been dreaming of since their days at South Dakota State University was in jeopardy.
“When you’re building a new business, there are a lot of costs involved,” Ellens said. “We talked about how, for us to keep this going, we needed the first five years to be banger years.”
In the middle of May, with the situation looking dire and Thuringer pondering selling his camper, they called their banker: Josh Kayser at The First National Bank in Sioux Falls.
“I was like, ‘I’m going to tell you right now, we have no idea how we’re going to pay you,’” Thuringer recounted. “‘We don’t know if there’s going to be a penny. I’m looking for a job. We’re in trouble.’ And Josh just said: ‘We understand the situation. We’ll take care of you. Don’t worry about it.’”
Soon after, some dry windows opened up, so the farmers who Lakeco services were able to plant crops.
“It was only about half of what we sold, but it was enough to pay the line back,” Ellens said. “But I will say, First National Bank built a lot of loyalty with us during 2019.”
“I remember that year well,” said Brian Gilbert, ag banking manager at First National Bank. “I’m sure Rob and Dave had a lot of sleepless nights, but I know our team at First National didn’t because we believed in their plan for their business.”
Rob Thuringer and Dave Ellens with Brian Gilbert (center), ag banking manager at The First National Bank in Sioux Falls.
‘It started on a napkin’
Lakeco Crop Services started in 2013, when Ellens incorporated the farm dealership that had been in his family for decades.
“I grew up in Wentworth on a farm that my grandpa started right after World War II,” Ellens said. “When he moved here in 1946, he started a Pioneer dealership. And then my dad took over in the ’80s, and I took over in 2009 when I graduated from SDSU.”
He later added chemical and liquid fertilizer to the ag retailer’s offerings, but the business began growing too large for him to manage alone.
Knowing he was in need of a business partner, Ellens reached out to his longtime friend and former college roommate.
“I grew up in Madison,” Thuringer said. “My dad ran the elevator in Wentworth for nearly 20 years, so I spent a lot of time in the area.”
Thuringer’s career path took him from ag retail to ag lending to the wholesale side of the seed business, which he was doing when he got the call from Ellens in 2017.
“We dreamt up this idea in college,” Thuringer said. “I mean, it started on a napkin. It took about eight years, but then Dave called, and we got back to starting this up and moving forward with our vision.”
“We even came up with the name Lakeco in college,” Ellens said. “Even when we were competitors with each other, we always talked about doing this at some point.”
Ellens’ vision for the business was to take it from a farm dealership to a retail presence, and he knew he needed a partner to make that happen — not just an employee but someone with stake in the business who would be there long term.
“When I was trying to decide if I was going to do this or not, I talked to a good friend of mine,” Thuringer said. “I told him what was going on, and he just looked at me with a goofy look on his face and said: ‘Bet on yourself. Why would you bet on anybody else?’ After I walked out of his office, I called Dave and said ‘We’re doing this.’”
Partners in success
“I got to know Brian through South Dakota Ag and Rural Leadership,” Thuringer said, “and then Josh because his wife, Kara, was in it too.”
“I kind of threw this idea at Josh,” Thuringer continued, “and he was like, ‘Yeah, we can sit down and have a more detailed conversation about that.’ So we met to talk about it and, kind of surprisingly, he said: ‘Let’s do this. What do you need?’”
First National Bank was able to help Ellens and Thuringer get their business off the ground and has been supporting their growth ever since.
In 2020, the Lakeco owners added a sister business: Legacy Ag Wholesale.
“We always wanted to put ourselves in a better position for buying chemical and fertilizer,” Ellens said. “At the time, we had a relationship with Brian Leighton — who was in the wholesale business — and he was transitioning through jobs. We came to him and said, ‘Can we build our own wholesale company?’ And that’s how Legacy came about.”
The company sells to other independent retailers just like, and including, Lakeco Crop Services — putting Ellens and Thuringer in a better position to buy products so they can pass those savings on to their Lakeco customers.
“Adding Legacy was a big milestone for us,” Thuringer said. “We had a five-year plan, which was to build the Lakeco shed and then put bulk bean bins on it five years later.”
“Well,” he continued, “we built the Lakeco shed in 2017 and got going. Three years later, we added Legacy and built the shed where that business is operating out of. And then, three years after that, we put our bulk bean bins up. So our five-year plan turned into two- or three-year wild ideas.”
“First National understands what we’re doing here,” Ellens said. “They’ve understood the growth and weren’t scared to let the lines of credit get bigger. When we were growing, I never felt like we were handcuffed.”
Their next five-year plan is to build a second location for Lakeco on Highway 19 south of Madison. Additionally, they hope to expand the Legacy building to add a bulk chemical facility.
“Being involved with his own business, Josh understands what it takes to grow,” Ellens said. “If we came to him and said we want to put bulk chemical in, he’s going to know exactly what that is and why we need it.”
Josh Kayser, ag banking team lead at The First National Bank in Sioux Falls
“Talk about someone who has vision,” Thuringer added. “Josh is focused on growth and not scared to do something. I like banking with a guy who has that mindset — where we have to keep up with him.”
Helping growers achieve better yields
Just as First National Bank has been a partner in Lakeco’s success, Ellens and Thuringer are committed to being partners in the success of local growers.
They pride themselves on being a locally owned business with superior service because of the fact that Ellens and Thuringer grew up in the area and have been building relationships with growers for decades.
“We have the best service and some of the smartest agricultural expertise in the area,” Ellens said. “Will Allgaier, who is our agronomist here, does a lot of crop consulting. I think he’s seen more acres than anyone in Lake County.”
“When you look at why you buy from anyone, it’s product, price and service,” Thuringer added. “We have an excellent lineup of products, whether it’s Pioneer or our crop protection portfolio. If we don’t have what you need on hand, we will go get it.”
Lakeco also boasts unbeatable service and competitive pricing to help growers improve their bottom lines.
“We’re going to do everything we can to take care of our customers,” Thuringer said. “The more money they have in their pockets, the easier our job is.”
They’re even happy to answer calls about products purchased from competitors, according to Ellens.
“We love when growers call us with questions about stuff they bought somewhere else because we know that we’re their No. 1 call, not the other guys.”
That’s what’s most important to both Ellens and Thuringer: Lakeco Crop Services can be a partner for farmers and growers in their success.
“Nobody needs a salesman,” Thuringer said. “I hate being called a salesman. I want to be a partner. I want to be a trusted advisor. I want customers to call asking questions that have nothing to do with seed or chemical but because they value my opinion.”
“And find a partner in your bank, not just a banker,” he continued. “I think that’s been huge for us: First National has been a great partner. And we definitely want to keep that growing and growing.”
If you’re an entrepreneur looking for a partner to help you start or grow your business, reach out to the agribusiness team or business banking team at First National Bank. They’d be happy to start a conversation!
