Fall 2022 Newsletter

Oct 15, 2022

Fall 2022
It is hard to believe we are down to a little over a quarter of 2022 left. It will certainly go down as one of the most volatile when it comes to price action in the commodities we buy and sell. From record input prices to grain prices, 2022 has been one for the ages. At Farmers Cooperative, we continue to look for ways to add value to your operation. As part of serving you, we strive to provide the supply of inputs you need, as well as competitive grain pricing and programs, to make your operation successful. We continue to add speed and space in our grain division, as well as upgrade our rolling stock in all divisions.
During fiscal 22/23, various projects have been completed and many are in progress. A 2.0-million-bushel Macon building with 20,000 bph fill capacity will be ready for harvest in Exeter. The greenfield site located near Barnes, Kansas, will not be completed by harvest this year, as too many weather events delayed progress. McPherson Concrete and Habco are constructing 2 – 92’ x 140’ concrete tanks with each holding 820,000 bushels. They will be loaded with 2 – 20,000 bph legs with overheads along with an office for our staff. We have started construction of a new 450,000-bushel bin in Lushton after the June 14th storm took out a couple of bins there, as well as repairing another one by taking it down to the ground, replacing the damaged sheeting, and jacking it back up. Eight overhead bins were constructed in various locations to help with the unload process as well.
An addition to the agronomy center in Odell was completed with Exeter and Wilber in progress. Our new NH3 site was added near Adams where one of 4 – 60,000-gallon bullets were placed; the other three are located in Exeter, Dorchester, and Odell. Several ag tire machines were put in service this year, as well as a tire service truck and propane truck in the energy division. The feed division added several feed trucks, as well as a Micro System in Firth. Five additional power units and grain trailers were added to our transport fleet. We continue to add and update equipment and facilities to better serve you.
As we move into 2023, we will focus on driving efficiencies throughout your company and look for ways to do more with less, so to speak. Three main areas that will have the biggest year on year impact are labor costs, interest costs, and the overall results to all other costs due to inflation, particularly repairs and fuel costs. Each year we do an annual business forecast, and those three categories look to add nearly $10 million to our expense line in the coming year. 
Fiscal 21/22 was an excellent year financially for your company and we look forward to reporting our audited results at our annual meeting on January 10th in DeWitt.
Thank you for your business and support and we look forward to serving you again this year. Thanks again, and please have a safe harvest.


Read More News

May 01, 2023

Fiscal year 21/22 proved to be one for the record books for your company. Record volumes of grain were handled as a result of the largest harvest handle to date during the fall of 2021. Along with extreme volatility for all commodities, this provided many opportunities for your company. Record prices for both grain and inputs were also experienced in 2022 as the Russia/Ukraine war shifted demand around the world for grains and fertilizers. As the war progressed and sanctions were put on by both sides, Euro Gas jumped to nearly $100/MMBtu, forcing nitrogen manufacturing facilities in Europe to shut down, allowing U.S. nitrogen producers to export to Europe keeping domestic prices in the U.S. firm. Thankfully Europe has had a mild winter this year with only five days having recorded temperatures below freezing so far, bringing gas prices back down, thus causing fertilizer prices to soften as most European nitrogen manufacturers are again producing products.

Mar 31, 2022
2021 will go down in the record books for a lot of things – one could be for the greatest number of times we’ve said, “we’ve seen this before.”
Mar 23, 2021
Moving forward, we will look for greater efficiencies through continued investments in facilities and operations to better serve you.