Summer - 2010

Financial update

By Kelly Davidson, Interim Manager

As we reported at our annual meeting in May, your cooperative incurred a local operating loss of over $800,000 this past fiscal year. This loss was due to the lack of a fall fertilizer season in 2009 because of wet weather, declining retail fertilizer prices, and many other factors. At the end of the fiscal year, our working capital was pretty well used up.

We are pleased to report that in the first three months of our new fiscal year we have earned a significant profit and our working capital has increased by $400,000. This is due in large part to a very good spring fertilizer season. As stated earlier, very little fertilizer activity occurred last fall; therefore, our spring sales were very strong. In addition, we have reduced expenses in a number of areas which also helps the bottom line.

These financial results have required the board of directors to take a hard look at all of the operations of the cooperative. They have made several tough decisions pertaining to different areas of the business. These decisions have been based on the financial results of these operations for the past several years, not just the last year's performance.

In April, the board voted to shut down the feed mill which has lost money for years. The feed mill itself was worn out and needed several thousands of dollars worth

Of repairs and the number of patrons still feeding at home had continued to decline. We still offer bagged feed at our locations, but no grinding or mixing is done. At the same meeting, the decision to discontinue our trucking operation was made. The entity barely broke even and long-term didn't look to get any better. The discontinuance of the operation will have very little impact on the membership.

The directors decided at the May board meeting to exit the tire and service business. This department, like the feed mill, has suffered losses for several years. We were fortunate to find a local buyer for the station who intends to offer the same services. If all goes as planned, the new owner should take over on July 1,2010. Many rumors are floating around the community as to what will happen next or what department or location may be closed. At this time, I can tell you that the directors are taking a hard look at all departments and divisions of the cooperative. If any further changes are made, it will be done only after due diligence and with the best interest of the cooperative as a whole in mind.

The decisions made thus far have not been easy for the board and have been done only after some very long and serious discussions. The changes that have occurred affect them and their operations as much as they do yours. 

From the Grain Desk

By Matt Hines

The ranges for grain prices broke last week, but broke lower. However, they have stabilized some since with positive outside market influence. Weather can, and still will, be a factor determining prices, but at this time we have a corn crop ahead of schedule and a bean crop on pace with the five-year average. In general, conditions throughout the nation are very good. Some very wet areas actually would be the only weather item of concern. Corn conditions as of June 14, 2010 were rated at 77% good to excellent compared to 70% last year and 67% for the five-year average. Soybean conditions were rated at 73% on June 14, 66% last year, and 63% for the five-year average.

Please check our website, www.smcoop.com for current and new-crop 2010 bids, or give us a call at 888595-7553 as you look to move your grain. Take advantage of our close, convenient locations, or we can assist you in delivering directly to a processor or other end users. Whether you are interested in hauling your grain or would like us to pick it up for you, we will strive to stay competitive. We can look at different pricing options to help you get the most money for your grain.

This year we will be taking wheat only at Wamego and St. Marys - NO wheat will be taken at Belvue. Hours will be extended during harvest, but please call ahead or make note of your location's hours. Updated discount schedules will be available by week's end at each location. We will also continue with the 15-day grace period for storage. We wish you all a safe summer! 

Bulk fuels and Propane

By Marvin, Bill and Bill R.

Our warehouse is being moved to the feedmill lone block to the north. We still have the same quality oil and other lubricants, just a different location.

Yes, we are still in business. There are a lot of things being said that are not true. If you have concerns, contact Kelly or your board of directors. Most employees cannot provide answers to your questions.

As far as oil is concerned, prices are up. We have received increases from our supplier that will go into effect within the next two months. At this writing, it looks like irrigation fuel usage will be down again this year. If you have fuel in your irrigation barrels that is over two years old, we can check for water and check the color. Ruby Diesel has stabilizers to extend the life of the fuel. If you have concerns please call.

Propane prices have dropped a little. If you think they are at the low, you may want to fill your storage tanks.

As always, thank you for your patronage. It is sincerely appreciated. 

Feeding Facts

By Kenny TenEyck

By now you should all know that we no longer grind and mix feed in the mill. However, this does not mean we can no longer serve your needs for minerals, bagged grain and mixed rations. We still have our regular brand of minerals, bagged cattle and horse feeds, layer feeds, goat feeds, whole and cracked corn and  milo, etc. just like we have had in the past. We will also have bulk CGP's available for pick-up only - no delivery

A full line of animal health products is still available. We also have gates, stock tanks, posts and wire in stock.

There have been some changes, but we are still able to serve all of your bagged feed, animal health, and livestock equipment needs. Please feel free to call or stop by and we will do all we can to help you. Your business is appreciated.

Valley Irrigation

By Rick

Early in the growing season, it looks like we are off to another wet start. As this is written, it seems like the fields need to be "de-watered" instead of watered. But, it is very likely the rains will end and the crops will require water from irrigation. You can count on us to be here to help you get that job done.

We are offering specials during the month of July on parts for many of your irrigation needs. Feel free to stop by or call.

As always, thanks for your business. Please know it is appreciated by all of us in the irrigation department. 

The View from Belvue

By Matt Wilber

With summer in full swing, we are in that transitional time between planting and harvesting. Hopefully, the crops continue to look as good as they do now. I thought I would list some of the things that one should be doing in the second half of the year.

Alfalfa growers need to be soil sampling fields in which you plan to plant alfalfa this fall. It may not be too late to control grass that has been growing in your fields since the second cutting. Will Roundup Ready alfalfa be available this fall? It might be. Visit with us about your seed needs before you plant. We have everything from common varieties to highly productive ones.

Brome producers need to be soil sampling their fields to see where the nutrient levels are. If your brome yields have been slipping because you are applying only nitrogen, fall is an excellent time to put on phosphorus, potassium, and sulfur.

Corn producers should be assessing herbicide performance as well as disease levels. Also, if you are interested in prepaying for fall fertilizers, prices should be available, or soon will be. Several of you have been to the Answer Plot in Wamego. There are several things to look at and learn about that can help you have a better understanding of how and why things work the way they do. If you have never been to a field day, give us a call and we can get you registered for the next available time.

Soybean producers should be monitoring late season insect and disease pressure. If you need to make another herbicide application, insecticides and fungicides are very compatible with glyphosate herbicides.

Wheat producers can also be soil sampling. Adequate phosphorus levels are essential for tiller number and development. We will have a good supply of quality seed wheat for this fall's planting.

Please consider us for your generic herbicide needs. We are trying to be as competitively priced as possible. For the homeowner, we currently have generic glyphosate for $14.00 a gallon which is $35.00 for a 2.5 gallon jug.

Thanks for your continued support and business. We look forward to serving you this fall with harvest, fertilizer, and herbicide applications. 

From Harveyville

The company is undergoing new restructuring of the feed department. That should help put it in a positive mode of operation.

After a rather bleak 2009 due to wet weather conditions for six months, we have had a major recovery the first quarter of 2010.  As of now, almost all prepays have been pulled and billed.

The company is undergoing new restructuring of the feed department.  That should help put it in a positive mode of operation.

Seed sales of corn, beans, etc. are up considerably at our location. Company-wide we are anticipating some major volume discounts to be credited by various seed companies sometime in August. At that time, we should show some substantial profit in seed sales.

Crop production at Harveyville was outstanding the first quarter. We exceeded our budget prediction in most categories. The second quarter is starting out very well. If we can have a normal fall weather pattern, we could have a bumper year for 2010.

I especially want to thank our employees for their willingness to put in the long hours and weekends to make this all happen. This could not have been done without their dedication to the task. I also want to thank our patrons for their patience as we were moving product faster than we could get it in. Thanks also to Matt Wilber and the staff for location which kept delays to a minimum.

From Wamego

As quickly as time is flying, wheat harvest may be well underway if not finished when you receive this mailing. For those of you planning to plant wheat this fall, come in or call and give us an idea about how much seed wheat and what variety you are thinking you will need.

The corn and soybean fields in the area are looking good. In thinking of fall harvest, do you have new landowners or different split percentages with current landowners? Please let us know of any changes in your grain accounts so we can have them set up and in the computer correctly.

May you have a safe, fun-filled Fourth of July weekend as well as a good summer!

- Barrie, John, Chris, Morgan, and Jeanne 

FOR SALE

1988 Red GMC Pickup 

1992 White GMC Pickup