Your Cooperative’s fiscal year ended August 30th and while we are awaiting the final audit report, we have had a very solid year and look forward to reporting the results. At our annual Directors audit meeting they will get the final numbers, make patronage and tax calculations and decisions as well as consider capital expenditure needs. This year saw a more balanced outcome between the record profits of two years ago and record losses of last year. Unfortunately, we continue to see volatile commodity pricing and supply in crop nutrient markets. We continue to make every effort to buy and sell product in a fair manner but conditions and deals often change on a moment’s notice. I believe that we continue to need forecasts of product needs from producers and our location managers, as we cannot take speculative risks on significant amounts of unsold product. Within the circle of Supply Chain Management that includes the manufacturer, the vendor, the retailer, the transporter and the end user, reliable communication is key. And in the case of Farm Service Company, the purchase contract and its finer details is becoming even more important. Dates, signatures and deposit checks are critical to the completion of that contract.
Industry Changes: Consolidations and alignments continue to occur at all levels of agriculture.
International companies with significant capital are entering the Midwest retail market, national companies including regional cooperatives continue to add local retail sites, cooperatives in the $300 million range and larger are aligning together. Farm Service recently became an “aligned cooperative” in the United Suppliers system and continues to look at other opportunities that will allow us to meet these challenges and continue to serve our member producers.
NEWS AT FARM SERVICE;
Robert Casson is the new location manager at our Neola/Underwood location. Robert is a long-term employee that many of you know well. Robert has lifelong history in Underwood, has top-notch agronomy experience and an exceptionally strong desire to serve area producers with fairness, integrity and exceptional service. Robert and Rhonda have two daughters Erica and Natalie and live in rural McClelland.
Jennifer Millsap has replaced Sarah Muell at the Logan office. Best wishes to Sarah and much appreciation for her years of service and a big welcome to Jennifer to Farm Service Co. We know it is a big relief to TT to have immediate, highly qualified assistance in the office.
Grain merchandising for Farm Service Co. has returned “in house” with the assistance of a FC Stone management program. Feed milling remains aligned with UFMC with all local orders called in to the Treynor office.
The Treynor facilities consolidation continues with office and shop improvements being made as well as NH3 tank and liquid tank consolidation. We will continue to utilize the west plant and shop.
Other facility changes include demolition of the old fertilizer elevator and shed at Silver City, the proposed demolition of the Underwood fertilizer plant. We are moving one NH3 tank from Silver City to new piers as an addition to storage at Randolph, and moving the propane tank that is on the creek edge in Silver City across the road to the vacated piers, a much more secure site as the tank in its current spot is settling toward the ditch more every year.
Pacific Junction has put in a new chemical containment dike on the pad of a former quonset, improving their dry load out and finally, after years of fighting water issues, have graded the lot to improve drainage and pumping ability.