I hope
everyone has had a Merry Christmas and a Happy New Year. I want to thank you for your support over the
past six months. There have been several challenges and a quite few changes
since June. The next few months will
continue to bring more of the same.
Producers
Cooperative Association is a very special place. It is special for a number of reasons. But the main reason it is special is because of people, both
employees and customers. The employees
do a great job of meeting customer’s needs.
The tough times that affect you on the farm have the same affect on the
COOP and our ability to be competitive in the market place. The customers are special also. They help keep the employees focused on what
their needs are and how to better serve those needs. The bottom line is, good people make a difference.
Each
department has had to endure its own set of challenges. The Petroleum Department has undergone a
management change. In Addition, the
Petroleum Department will see continued change as we upgrade the station. The Agronomy Department has struggled with
the lengthy drought. Soybean prices
have had an impact on the bottom line at the Bean Plant. Tough growing conditions reduced yields at
harvest and had an impact on grain volume at the elevator. Drought has also increased the demand for
feed. We can all honestly say that this
has not been a normal year for Producers COOP employees and customers.
As we look
forward, hopefully winter rains and snow will replenish ponds and ground
moisture. This should help with our
wheat crop. Now is the time to also be
thinking about spring crops and input costs.
The fertilizer market looks to be extremely unsettled. Nitrogen units could be hard to come by
again this year. We would love to visit
with you about your seed, chemical, fertilizer and fuel needs. In addition, we would like to discuss
grain-marketing strategies with you. In
today’s volatile market place, it is essential that we continue to communicate
and work together.
Once again
I want to thank both the customers and employees for their support. People do business with people. Part of my mission as General Manager is to
build long-term relationships that are beneficial to both the customer and the
COOP.
HAPPY HOLIDAYS!
Rob Yarborough
The
Harvest of 2006 is over, and of course it was disappointing this year. Wheat, Corn and Soybean yields were all
lower this year, with soybeans being the most disappointing. Prices have been good, though, so at least
that has somewhat lessened the economic impact of the short yields.
Many things have been driving the prices this
year. Poor wheat yields both in the
U.S. and especially in the southern hemisphere started prices shooting
upwards. Investment funds have shifted
out of the Energies and into Grains and other commodities also inflating
prices. Lately, corn has been the
biggest mover in pricing. The outlook on corn is for a high demand in the
future, as more and more Ethanol plants come on line.
I would
like to remind everyone, that due to increasing cost factors, we are raising
the storage rates in the elevator as of January 1st. The new storage rate for open storage and grain bank grain is now
$.04 per bushel per month. The new rate
for deferred priced grain is $.03 per bushel per month. Also due to decreased plantings and quality
of oats, we will no longer accept oats in our elevator, so we can better
utilize the room we have for other grains.
Oats will still be available as a feed ingredient through our feed mill.
A new year
is a new hope! My wife Barbara and I
wish you a great New Year!
Just a reminder that we have bids for farm direct shipments, whether it is for grain picked up on farm or delivered bids with your trucks. Give me a call for current quotes.
We’re
currently offering volume premiums on corn and soybeans sales for delivering
into our Girard elevator (5,000 bushel or more per sale). Again, give us a call for details. We’ll be happy to provide information on this
attractive program.
Best
wishes for a happy and prosperous 2007!
By Randy McAtee
The petroleum Center has made several
changes over the past few months. We
are currently working on cleaning and repairing equipment to be more available
for use in the service department. We
will be installing new pumps and card readers after the first of the year. We will be doing most of the same things we
were before, such as: Bulk Oil, Fuel, Propane, On Farm Tire Repair, and at the
Station: Oil Changes, Tire Sales, and Tire Repair. We will also be looking at other services that will be a benefit
to our community. I would like to thank
you in advance for your patience during these changes. When finished, will have a place that will be
convenient, pleasant and one that you will be proud to use.
Fuel and
Fuel Contracts: the market has been
somewhat of a roller coaster ride. It
seems to go up 4 or 5 cents one day, and go back down the next. Please call and we will do our best to get
your fuel at the best price.
Rob and
the Board of Directors are currently looking for the right person to fill the
Petroleum Manager position. They have
several good candidates and are very close in making a decision. I would like to thank the staff at the
Petroleum Center for all the help they have been. I would also like to thank the staff at the Feed Mill for
chipping in and helping while I’m here at the Petroleum Center. Please stop by the Station and see some of
the changes we have made, and see if we can help you in any way.
We now have officially entered winter although the winter feeding period started much earlier. Market conditions have many producers’ turning toward greater use of byproduct feeds instead of the traditional corn and soybean meal mixes. This has left us more at the mercy of outside suppliers and in turn has driven up the prices of the byproduct feeds as well. Feed prices have increased 25% or more since September, reminding us of the importance of forward contracting our feed needs. I would like to take this opportunity to thank all of you for your patronage in 2006 and wish the best for everyone in 2007.
We would like to take this opportunity to thank you for your past support and hope to continue to be able to supply your needs in the future.
As the
year changes, we have a couple of changes to make you aware of. With the increased cost of repairs and
replacement of equipment, we will be raising our application charges by $.50
per acre and our spreader rental fee by $1.00 per ton. These changes will allow us to continue to
provide you with the service we have provided in the past.
Again,
remember us for all your seed needs. We
are your one stop store for all your crop input needs.
I hope all
had a prosperous and safe New Year and we look forward to this year being even
better.