September 2020 Newsletter
Sep 01, 2020
A Message From President/CEO, Allan Zumpfe2020 will certainly go down in the record books as one of the most unusual and challenging years in history. COVID-19 has changed our lives forever, and I believe, like most people do, not for the better.
Your company continues to operate for the most part as usual, but only for the most part. We continue to be challenged with our employees being exposed to the virus, testing for it, and 14-day quarantines. At this time, we have only had two confirmed cases of COVID-19 within our employee population. We continue to follow CDC guidelines as well as our public health department’s recommendations.
From the very beginning, Farmers Cooperative has been in the category of essential, critical infrastructure. This means we are allowed to operate under different rules than some businesses. We continue to monitor this dynamic situation and make adjustments as deemed necessary.
The bottom line is I want all our patrons and employees to know that we will be here to serve our customers to the best of our abilities in the coming weeks and months in these extraordinary times.
Farmers Cooperative has again invested in new grain storage facilities to better serve our member owners this year with an additional 3.5 million bushels of upright storage bins and 3.5 million bushels of bunker storage. A new 500,000 bushel steel bin was added in Ohiowa north of the existing bins east of the office. A new 500,000 bushel bin and 20,000 bushel leg with dual dump pits will be built at Ruby. Also, a 680,000 bushel concrete tube has been added in Jansen on the south end of the existing bins.
At Frankfort, we added an 820,000 bushel concrete bin on the east side of the complex, and a 1 million bushel concrete tank was added to the north end of the facility at Hanover. We are also adding new million bushel bunker storage structures at Jansen, Daykin, and Milligan, with a 500,000 bushel bunker being erected at Hanover. Our contractors have done a great job of getting these projects completed and we should have all of this new storage available for harvest.
Thank you all for your support and your business, and please have a safe harvest!
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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.