By Chuck Lay

When DON COPENHAVER stepped down Feb. 28, 2009, as MFA’s president and CEO, he left behind a career that spanned 47 years. In the intervening years, he has had a major impact on the cooperative.

Don Copenhaver doesn’t suffer interviews well. He’s nervous, clearly uncomfortable, glancing off in different directions. “Do we have to do this?” he asks. “I’m no good at talking about myself.” He adjusts his tie, looks out the window of a large office overlooking the backyard at MFA’s corporate headquarters. It’s early January of 2009, the last months before his official retirement date of March 1.

He’s only the second inhabitant of the office first occupied by retired MFA president Bud Frew, and just the fifth president in MFA’s 95-year history.

The office is spacious but not lavish. Four Farmall tractor models decorate cabinets and tables as do a Case MX 135, a Case MX 210 and an assortment of model antique John Deere equipment. Copenhaver pushes back from the table and crosses first his legs, then his arms. Clearly ill at ease being asked to list his accomplishments. “I don’t really have any,” he says, earnestly.

No accomplishments? President and CEO of MFA Incorporated for 11 years? Years that saw across-the-board increases in all balance-sheet measurements?

The situation

That balance sheet, strong by business standards, kept Copenhaver on edge. Sleep was a rare commodity for Don Copenhaver in late 2008 and early 2009. Emotional strain stripped 10 pounds from his already lean frame. The source? Large write-downs in fertilizer inventories were daily peeling strength from MFA’s balance sheet—an action that affected Copenhaver as if it were his skin. After all, for Copenhaver, MFA’s balance sheet strength was not just his legacy but the rightful inheritance of the cooperative’s member/owners.

Those write-downs were a dose of new market reality to a longstanding business practice. For years, part of MFA’s member service philosophy included having a supply of product. Other businesses may run out of product in mid-season, but MFA was built with the producer in mind. In fact, year in, year out, MFA traditionally supplies more than 1.5 million tons of dry, liquid, anhydrous and bagged plant foods. The system, constructed by a generation of cooperative leaders to feed the farmers’ appetite, includes ocean-vessels, river barges, rail and truck from production sites or storage terminals in 12 states and numerous international production sites.

To set the stage for trouble, nationally recognized experts had been forecasting continued escalation in already historic high prices. Last summer, MFA began filling parts of the system in anticipation of fall application, a season that weather, elections and a worldwide financial crisis cancelled. With rain delaying harvest, fuel prices tanking and commodity prices slipping steadily downward, many farmers sat out the season. Product didn’t go away; it depreciated.

Product that wholesaled at $1,000 in August slid to $500 retail by late December. More than 100,000 tons of fertilizer backed up in a system built for rapid turns and began feeding on the balance sheet.

At one point, Copenhaver called a banker who underwrote tens of millions of dollars of MFA’s operating capital to apologize for using positive company profit projections just prior to global market conditions that were mandating federal bailouts of banks.

“Don,” said the banker, “trust me on this. There’s a crisis in the banking industry right now. I’ve got loans that worry me, that keep me up at night. MFA’s accounts don’t. You guys aren’t even on my radar. Your balance sheet is in no way problematic.”

In fact, had the commodity and product crises happened in tandem with MFA’s fiscal year, the cooperative would have experienced two back-to-back years of modest profitability to breakeven rather than a year of gain followed by a year of loss.

Still, for a man trained in accounting and steeped in fiscal responsibility, Copenhaver couldn’t shake the fact that the credit crunch and its ramifications happened on his watch. “I didn’t want to end my career with a loss year,” Copenhaver told assembled employees in February.

The meeting

Twice a year, MFA’s CEO holds employee meetings to provide a snapshot of the financials answer questions and interact with employees. “I sure didn’t want Bill to begin his career as CEO like this [Bill Streeter, who had been senior vice president of retail, succeeded Copenhaver as MFA’s sixth president as of March 1, 2009],” said Copenhaver. “When I announced my intention to retire to the board last summer, we were in the midst of our best year ever.”

The room on the ground floor of MFA’s corporate office was filled to capacity in mid-February. The media’s daily drumbeat of world and U.S. financial deterioration caused employees to wonder if the meeting were a prelude to layoffs or drastic cutbacks. Copenhaver laid out the situation in black and white, announcing losses tied to inventories, steps management was taking and expectations for employees.

“We cannot save our way out of this,” said Copenhaver. “It’s volume-driven. We have to sell our way out of it.” Copenhaver paused and struggled with his emotions, looking for just the right words in addressing people, some of whom he’s known for 40 years.

As always, Copenhaver’s sincerity was on full display. “It’s always been the case that MFA employees and customers with their attitude and actions have provided solutions to tough times,” he said. “We can solve this situation if we work together. Although we can’t save our way out of this, we do need to watch expenses closely. If you don’t need it, don’t buy it. If you can put it off for a year, do so. Let’s spend money wisely or not at all.”

The soon-to-retire president and CEO stood in front of the group and shouldered complete responsibility for the situation, ticking off corporate strategies that would be employed to move the cooperative forward through the volatility of the markets. Employees processed the message but showed no disappointment in the man, giving him sustained and enthusiastic applause. In the midst of the crowd filtering out of the room, one individual with 15-plus years at the cooperative, said to those beside him: “Don’s a good man. You can’t help but like him. It took guts to do that.”

That assessment comes as no surprise to Jessica Copenhaver, his wife of 19 years. “Even before Don took over the position of president and CEO, his happiness hinged on the success of MFA,” she explained. “He worries about things he has no possible control over. From the weather, gas prices, market prices, rising insurance costs and now the economy. So many things affect the bottom line of this company, and he worries about every one of them. It’s personal for him, and he doesn’t leave it at the office.”

Jessica Copenhaver loves Don for many reasons. She understands his passions. “His farm is a huge part of his life,” she said. The couple lives on a 300-acre row-crop farm just outside Columbia. “Don takes pride in farming, and it’s something he does very well. I guess you can say that farming completes him.”

Better than anyone, she knows the depth of his feelings for the cooperative where he spent the majority of his life. “Retiring from MFA has been the hardest personal decision Don has ever had to make. He has been very blessed working for the company he loves and is so proud of and working with such great people. Please know that he always gave 110 percent.”

The stewardship

Over the course of Copenhaver’s stewardship, MFA’s grain bushel sales have risen from 42 million in fiscal year 1999 to 70 million in fiscal 2008. Seed sales have sprouted from $16 million to stand at $47 million. Over the span of Copenhaver’s leadership, MFA has returned more than $48 million to patrons. MFA is seventh in the nation in fertilizer sales; eighth in retail sales; seventh in custom application; 10th in seed; seventh in precision ag; fourth in grain sales. That’s nationally.

No accomplishments?

How about MFA’s multiple partnerships, working arrangements that have returned many times their investment? “I didn’t accomplish those,” Copenhaver said softly. His sincerity is palpable. Copenhaver has a disarmingly soft and humble manner, accented by candid blue eyes softened by a genuine humility born of faith.

“You really have to give credit to the people who did the initial analysis and the due diligence,” he said of the expansion. “I simply formalized their recommendations to the board.” And so it goes. The Glasgow location? “That was Bill [Streeter].”

How about AgriServices of Brunswick, LLC, in central Missouri? Copenhaver names two other MFA executives. Central Missouri AgriServices in Marshall? Ditto. West Central in Adrian? AgChoice in Kansas? Rock Port in northwest Missouri? The list goes on. Always the same answer—an immediate listing of MFA executives who did the legwork and financial prospectus.

“I cannot in good conscience say I deserve the credit for any specific thing,” he said. “All of these really and truly have been the accomplishments of the people around me. Just look around. We have key employees in the right places in retail, a great management staff and an excellent board of directors. I’ve simply given my approval to the ideas of those around me and presented their recommendations to a board dedicated to keeping MFA in the forefront of agriculture.”

The people

That’s the shorthand version of Don Copenhaver’s leadership style. Janice Schuerman, MFA senior vice president of corporate services, has worked with Copenhaver since the late 1960s. She knows him well. When he was first selected to succeed Bud Frew as MFA president and CEO, Schuerman went straight to his office to ask how he wanted to receive information.

“I asked if he wanted details, wanted aggregate numbers, wanted turnover rates and other HR metrics,” she explained. “Don just said, ‘Janice, I trust you to bring me the things I need to be aware of.’ And that’s the way he’s operated the last 11 years.”

Human resources reports to Schuerman, so she gets an in-depth look at that end of the business, and Copenhaver’s earlier statement about key employees touches on an aspect dear to Schuerman. To support his leadership, all areas of the company have implemented strategies to assure continued growth and success, she said.

“In large part that has been accomplished by a singular focus on constant improvement of the workforce. Don has always made clear that employees are one of our greatest assets. We’ve put in place screening, HR programs, training and other efforts to guarantee a high-quality, highly educated, professional workforce to represent MFA. We find good people and make sure they are empowered in the right areas. Don’s focus is on doing the right thing.”

The culture

Bill Streeter is certain that his friend of 20 some years has a long list of accomplishments, even if Copenhaver won’t list them himself. “Don Copenhaver is a master of creating an environment, of setting goals and of providing the opportunity for people to accomplish things,” he said. “There are three ways of motivating people,” Streeter said. “Through money, and that’s short-lived. Through fear, as in boot camp. But that only lasts until the person finds another job. The third is through self-motivation. Don has mastered this third variety. Self-motivation is accomplished through making sure employees understand the company’s vision and goals, through providing an environment that encourages people to excel, to want to come to work and accomplish things.

Don has never lost sight of what MFA’s vision is, and he makes sure no one else does either.”

When Don Copenhaver does spend time talking, it’s about the culture at MFA. He wants MFA to always be a caring organization, whether in dealing with employees or the farmers and ranchers who own the cooperative. “We can never forget that we’re a farmer cooperative first and foremost,” he said. “We’re here to serve our owners by providing quality products and top-notch service.”

In fact, five times over the course of an hour and a half interview, Copenhaver said, “Decisions have to be made on how we can best serve our customer/owners.” It’s a focus echoed by other MFA executives. Charlie Cott, vice president of plant foods and transportation, has worked at MFA for 32 years, with 25 of those as a direct report to Copenhaver during his rise to president.

“All of us who have worked for Don are very sensitive to the fact that we work for a business owned by farmers,” said Cott. “Plus, we’re schooled in what numbers are important. Don knows and understands corporate finance and cooperatives.”

It’s an area Allen Floyd knows inside out. Floyd is vice president of finance and serves as MFA’s CFO. He was hired in 1978 to replace Copenhaver as a budget and control manager. “Under Don’s watch our company’s overall respect has improved dramatically with our banks and other lenders. He has an expectation of professionalism, and gives you plenty of latitude, but you never forget the mission. Don makes sure of it.”

MFA’s culture is shaped to recognize and respond to customer needs. That’s where fiscal responsibility comes into play. MFA is built to provide solutions and avoid trendy schemes. That’s fine with Copenhaver. “We have to have a long view. This cooperative will be here in the future. Why not another 95 years?”

The decisions

Fiscal responsibility has become an entrenched MFA tradition over the past 30 years. The MFA mantra is business growth should come from targeted objectives that meet business goals and specific return criteria. It’s a formula in which MFA’s management staff and the board of directors are immersed.

Fiscal responsibility was the name of the game established by retired MFA president and CEO Bud Frew. Frew, now 11 years retired, understands what Copenhaver has accomplished and the pitfalls he’s avoided. “As CEO, it’s easy to lose track of your basic focus. Farmers own the cooperative, and they frequently want more than you can responsibly give. It’s your job to know when to say, ‘No. No, I won’t do that. That’s not a good financial decision.’ The ones you don’t sign off on—those are the ones a leader should be recognized for.”

Copenhaver has a handful of those to his credit. “When we pulled out of offering forward contracting of grain this past fall, some individuals did not understand why MFA would make that decision,” said Copenhaver. “But it was a responsible decision. Economics required it. We have an obligation as the management of the cooperative to protect the assets of this company. Grain prices were too volatile. We would have assumed way too much risk. Subsequent events prove the value of that decision. In hindsight, I certainly wish I had said no to plant foods inventories.”

It boils down, again, to Copenhaver’s basic operating principles: “I’ve always subscribed to making decisions based on these questions,” said Copenhaver, “Would I do this if it were my own company? Would I do this if it were my own money? I consider myself a fiscal conservative. I do not like undue risk. I want to make sure decisions are made with prudence.” It’s another reason Copenhaver took the fertilizer losses to heart. The amount of risk required by today’s plant foods industry disturbs analysts.

Copenhaver is known by his principles and habits throughout the agricultural industry. Jeff Stroburg, president and CEO of the 75-year-old West Central Cooperative based in Ralston, Iowa, serves with Copenhaver on the executive committee of the National Council of Farmer Cooperatives. Stroburg has known Copenhaver since the early 1980s when Stroburg came to work for MFA. “Don has always had a common-sense approach, a problem-solving perspective,” said Stroburg. “He articulates his positions well and contributes greatly to NCFC. I’ve watched MFA over the years, having been a former employee. I couldn’t help but notice that MFA under Don’s leadership expanded and moved in the right direction.”

The direction

Larna Lavelle has worked with Copenhaver as executive assistant throughout his time in the president’s office. She served with Frew during his term. Lavelle gets an up-close and personal look at how Copenhaver operates day to day. “Oh, he’s a worry wort,” she said, and then laughed. “But nothing gets past Don,” she said. “You’d better be accurate, because he goes over everything in detail. He absolutely does his homework. He’s really good with a calculator and cutting to the heart of matters. But he isn’t mean about it. He’s...” and she paused for just the right word... “conscientious, thorough. But he has to be. He’s responsible for keeping the company moving in the right direction.”

Brian Griffith was recently promoted to senior vice president of operations, a position overseeing both wholesale and retail operations for MFA. For years, Griffith served as MFA vice president/corporate secretary/general counsel. He’s well attuned to MFA’s direction, having helped structure and implement it. Griffith isn’t hesitant to list Copenhaver’s accomplishments. He rolls out two immediately. “His support for strategic acquisitions may be his biggest accomplishment. In fact, his willingness and support for ventures, acquisitions and business partnerships have made the additions seamless and profitable. It is recognition on his part that the company needs to grow in a cost-effective manner. I won’t call it visionary. That’s too grand a term, and Don wouldn’t approve of it. But I will call it a common-sense approach to business.”

The second accomplishment Griffith identifies is formation and development of an acquisition committee to inject discipline through an objective, unbiased analysis of potential acquisitions. “The committee is a cross-spectrum of business lines and expertise that allows us to thoroughly examine all sides of a proposal.”

MFA’s decade-long track record of expansion listed by Griffith followed a carefully crafted plan constructed over the years. David Jobe, retired senior vice president of corporate operations, had a hand in that expansion. “We made a conscious effort to expand through LLCs and non-cooperative ventures to improve the equity position of the operation,” said Jobe. “Look at MFA’s balance sheet today, especially the equity, the increased retained earnings. We’ve contributed more to the company through these very decisions which have allowed MFA to pay more patronage. It freed up cash. The whole purpose of that strategy was to build equity to stabilize the company. It has been very beneficial to farmers.”

The effort

“Don came up through the ranks at MFA,” Frew said. “At one point, I told him that he could be a bookkeeper and a damn good one for the rest of his career, or he could take bottom-line responsibility.” Bottom-line responsibility, said Frew, is the true test of an individual’s capacity. It’s a responsibility that makes people accountable, not just for numbers but for responding to situations that force decisions even when all factors are not controllable.

Frew recognized Copenhaver’s potential. “I wanted him out of strict accounting,” said Frew. “I was 20 years into my career before I learned that *@#^&% accountant was two words.” Twice during Frew’s tenure Copenhaver was lured by other companies, once to be CFO at a private firm. Frew’s advice: “Stay put. You’ve always had it. You have all the pieces. You understand agriculture, you understand farmers and you understand business. You’ve moved from a field accountant to a division controller to a regional manager to head of retail. You’re fully versed in all the important parts. You are well qualified to lead MFA.”

Executives learn over the years of being responsible for decisions, said Frew, that “no matter what you do people are going to throw rocks at you, but your job is to differentiate between ideas—that’s probably the hardest aspect. It’s not that you have anything against an individual you’ve said no to. It’s the wrong idea being pursued in the wrong way. You can hire a good businessman, but if he doesn’t understand or agree with the direction you’ve set, he’ll pursue the wrong agenda and hire others who pursue the wrong agenda. Pretty soon, you’ll have lost control of the enterprise. It’ll be moving in a direction that you don’t want to move.”

The focus on the right people making the right decisions proves itself in the marketplace every day, said David Jobe, who retired several years ago as MFA senior vice president of corporate operations. Look at all the financial shenanigans in the business world today, he said.

“Look at the CEOs and others who are taking millions from the businesses they are charged with leading,” said Jobe. “Too many executives hire for skills and wind up firing for ethics. Look at Enron. Then look at Don Copenhaver. Don has always done the right things for the right reasons. Some people may not agree with every decision he made, but I’ll tell you one thing: Don Copenhaver hired people for the right reasons. Don has been an exceedingly good steward and businessman. He would never allow the company to get in the shape Farmland or Fannie Mae or Freddie Mac got in. Never happen on his watch.”

The leadership

Ron Utterback is vice president of seed, crop protection and farm supply at MFA Incorporated. He’s been at MFA since the late 1960s, and he’s known Don Copenhaver in a variety of settings. “Copenhaver is a leader,” he said. “He expects us to run the business in our areas. He does not interfere; he encourages and helps define the direction. That doesn’t mean he’s not paying attention. He notices details. He allows us to express ourselves and lead our divisions in the way that best incorporates the company’s vision and mission.”

Utterback leaned back in his chair and stared out the window, trying to find the most accurate words to describe a man he has called a friend for 40 years. “He’s honest, dedicated, focused, And Christian.” Utterback pauses, looks almost sheepish. Utterback stands 6 foot 4. He’s an outdoorsman, not a follower by any means. And he backs up a little. “Sounds kind of like a Boy Scout, doesn’t it? I don’t mean it to sound that way. Don’s not perfect, and he’s not pious. He’s a down-to-earth farmer at heart. He’s got a practical nature, and he knows the value of making decisions.”

Utterback has a corner office himself, situated on the top floor of MFA’s home office in Columbia, Mo. To the left facing out of his office lies the crop protection division; to the right, seed and farm supply. Utterback rose through the ranks from retail manager to vice president. He knows the drill. To rise from the accounting system to the ranks of management in a sales, service and marketing institution is a big step, said Utterback. “There are many shades of gray when you’re responsible for a bottom line. Bottom-line experience defines business. It’s the capitalistic measure.”

Providentially, Utterback’s phone rang halfway through the interview. It was Copenhaver, checking up after seeing a financial report that had just reached his computer. After initial lighthearted banter, the conversation turned to the business at hand. Utterback said into the phone, “Don’t look at that right now, Don. It’s misleading.” Pause, head nodding. “Yes, I understand. You’re the boss. It’s your job to look at those numbers.” Then Utterback launched into a detailed explanation concerning billing several million dollars in crop protection products. “It just needs to be restructured from short-term to long-term debt,” he said. A few more words and the call ended, friendly as it started.

“Don and I always did reach a consensus,” Utterback said with big smile and a quick laugh. “It’s just that sometimes it isn’t my idea.”

The man

Don Copenhaver is a Christian, first and foremost. Next in order is father, then husband, then farmer, then businessman. David Jobe has known Copenhaver more than 40 years, and he’s quick to point out a fundamental in Copenhaver’s life. “His relationship with God has made a profound difference in him,” said Jobe. “He’s always been a good man, but his spirituality, his relationship with God have made him a man of integrity, of honor, of good character, of fairness.”

It’s a quality known to those closest to him, and one not lost on Jerry Taylor. As president and CEO of MFA Oil Company, Taylor is well aware of the pressures of leadership. Six years ago when he became president of MFA Oil, Taylor visited extensively with Copenhaver. “He was gracious and helpful,” said Taylor. “He’s been a model of how a president should act. And I’d be remiss if I didn’t say that Don’s integrity comes in large part from his having Jesus as Lord in his life. It’s a big part of his graciousness and his success. Don Copenhaver doesn’t lead a compartmentalized life. He’s not one way with friends, another at sporting events and another in the board room. He’s one person, and it’s centered around his faith.”

It’s another of the points Jessica Copenhaver was careful to make. “If I were to define his character,” she said, “God-fearing comes to mind. When you fear God and strive to live according to his word, you become a person with good character. Don reads the Bible every morning, and he’s done so for the 23 years we’ve been together.”

All of which brings the focus back to the individual sitting in his office, being asked questions that make him uncomfortable, being asked to be the center of attention. “I know it sounds silly to say this,” he said softly, but sincerely. “As part of the job, I’m in the public eye a lot, but I’m basically a humble person.” He paused for a split second, grinned sheepishly. “And I’ve always loved farming.”

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