Build, Learn, Grow, Work and Succeed Together

Dec 27, 2023


Celebrating the season and a good year at the co-op

From Federated's CEO ...

Like 2022, it was extremely dry on many farms and fields in 2023. If it wasn’t for all the snow last winter, it could have been a more challenging year. Lack of moisture was a recurring headwind that many faced this year. On a positive front, I heard many growers had better yields than they anticipated, even with the dry conditions. One measurement for the co-op is our fall fertilizer sales and we will have our best year ever. This is a win for everyone when we can work together in the fall to take pressure off in the spring. 

 

Because of your support and belief in the co-op system, the co-op will deliver our plan for 2023. Our agronomy business will be on plan, our energy business added over a thousand new tanks and will deliver plan. As in all business, price is important, but safety and service are critical for this business.  

 

With the support of your board of directors we spent over $4.4 million on capital projects to upgrade the fleet, equipment, and buildings, and to make investments in automation. We built three sheds to get our equipment out of the elements. We started on a new mechanic shop in Ogilvie that should be operational in April. We have over $40 million invested in rolling stock that we will be able to handle internally vs. send out.

 

These investments made a big difference in the services we provided and our ability to be competitive. The investments also created a better work environment for our employees. Our retail business, convenience stores, country stores, and lumber yard saw increased traffic as more people were commuting and traveling again. 

 

As we move into 2024, we will use our learnings to continue to drive efficiencies to become an even stronger partner with your farming operation. We are working with all our suppliers to look for ways to reduce our costs. We are committed to leverage all three of our businesses – Agronomy, Energy, and Retail – to achieve solid returns to you our, patrons. This past March, we returned more than $3.9 million with 100% payout to the patrons. This reinforces the financial strength of the co-op and should give you confidence that your equity is safe. (And remember, when you turn 67, you can claim your equity by just requesting it through our finance team.)  

 

You have a great team of employees that are laser focused on you, the patrons, because we know if we work together, we will succeed together.  I am so proud of the team and grateful every day for their commitment and dedication.  

 

On behalf of your board of directors and the 290 employees at Federated Co-ops, thank you for your patronage. I look forward to working together to succeed together for years to come.  

 

Stay safe and healthy. Merry Christmas and Happy New Year! 

 

Mike McMahon 

CEO, Federated Co-ops 

Read More News

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