2024: A Year in Review
Dec 20, 2024
As we close out 2024, I want to reflect on the tremendous momentum we have experienced this year. Our employees and facilities functioned at a very high level giving timely customer service. I want to thank the employees for their commitment and dedication and our member/owners for your loyalty and trust. Most of our core divisions saw unit increases and captured efficiencies to provide a good return on investment. The United Cooperative’s board has approved many building projects this year to meet the demands of our customers. Below are some of the major construction projects, completed and in construction phases:
We were blessed with another great crop year. Even though we saw challenges with a wet and spotty spring, which caused a prolonged planting season. The advancement in crop varieties, seed selection, and farming practices all proved valuable to outperform the environmental impacts that we encountered. Once again, we moved a lot of spring-input products in a short amount of time. The investments in hard assets and rolling stock fulfilled the logistical strategies we sought to meet the demands of our customers. On another positive note, by expanding our H2A program, we were able to find the seasonal help to provide the customer service our members have become accustomed to. Thank you to our seasonal and full-time employees and our suppliers for this achievement. The harvest season was fast and furious. Both soybean and corn harvests were well ahead of the five-year average. Overall, the crops were extremely dry, but we still enjoyed favorable yields. We continue to evaluate our grain storage and grain receiving capacities and have continued to invest to meet our increased customer needs. We also had a considerable amount of fall fertilizer spread this year. This should take some of the pressure off our spring planting season.
December 31st marks the end of our fiscal year and the privilege of being in business for 89 years. While the year and financial numbers will not be final until after the audit in early 2025, the internal financials show that the cooperative will have another strong year. Planning, execution, product availability, customer service, and loyal members are the foundation for United Cooperatives' success. Thank you for that support!
Named a Top America 100 Cooperative
For over thirty years, the National Cooperative Bank (NCB) has released the annual NCB Coop 100, which highlights America's top 100 Cooperatives. These 100 cooperatives are member-owned, member-controlled businesses with a combined revenue of over $324 billion.
Many of the cooperatives that appear on the list are household names and are known worldwide. They represent farm supply, rural electrics, insurance, dairy, organic, retail, and manufacturing with recognizable cooperatives on the list, including CHS, Land O' Lakes, ACE Hardware Foremost Farms, Ocean Spray, Blue Diamond Almonds, and Organic Valley. United Cooperative ranked 29th of the agricultural cooperatives on this list and 54th cooperative overall.
Over the past 40 years, CropLife magazine has published its CropLife 100, which recognizes companies that influence and move the agriculture market. This year, United Cooperative was recognized as 20th out of the top 100. This is the sixteenth year in a row that United Cooperative has been recognized as one of the top 100 companies.
It is an honor to be recognized on these prestigious lists. However, no matter our size and scale or being mentioned on any list, we are only as good as the returns we generate through profitability and how we protect shareholder value for our members. That reality is demonstrated through our strong patronage programs paid to our members. $50.6 million in cash was returned to our customers this year alone. The re-investment made in the cooperative was over $100 million this past year. These two items are ways we continually protect shareholder value.
Our vision for the future has to parallel the agricultural changes of our farmers to create a positive customer experience where our farmers can "Rely On Us." To maintain this experience, please discuss your needs with one of our trusted advisors at United Cooperative as you prepare for your 2025 farm inputs. Decision-making, forecasting, planning, and execution all directly impact profitability at the farm and the cooperative.
Merry Christmas, and thank you again for your patronage in 2024. I look forward to a prosperous year in 2025.
- Waupun - New feed mill and warehouse, along with 2.8-million-bushel/dryer grain terminal are operational. The Soybean Processing Plant has begun construction, and all equipment has been ordered with scheduled completion in early 2026. The entire complex will have total railroad service.
- Center Valley – A complete Agronomy facility and 4.2-million-bushel grain storage facility with a 7,000 bu/hr dryer, high speed receiving pits and rail car loading. The grain facility will be completed in 2025.
- Mayville – construction of a new agronomy facility with office and warehousing ready for spring of 2025.
- Coleman – Agronomy warehouse addition and liquid plant expansion. Ready for spring of 2025.
- Ripon South – Grain expansion adding 3 million bushels of storage with a new 7,000 bu/hr dryer and 3 new receiving pits, in the process of upgrading rail loading for 50 cars with railscale. Railscale and track will be completed in 2025.
- Hillsboro – Dry fertilizer plant expansion. Ready for spring of 2025.
- Westfield – New fertilizer blending tower. Ready for spring of 2025.
- Johnson Creek – New faster fertilizer receiving pit and leg. Completed.
- Necedah – June purchase of the 100 million gallon ethanol plant from Marquis Energy, creating United Energy Necedah. 1.2 million bushel grain bin is under construction.
We were blessed with another great crop year. Even though we saw challenges with a wet and spotty spring, which caused a prolonged planting season. The advancement in crop varieties, seed selection, and farming practices all proved valuable to outperform the environmental impacts that we encountered. Once again, we moved a lot of spring-input products in a short amount of time. The investments in hard assets and rolling stock fulfilled the logistical strategies we sought to meet the demands of our customers. On another positive note, by expanding our H2A program, we were able to find the seasonal help to provide the customer service our members have become accustomed to. Thank you to our seasonal and full-time employees and our suppliers for this achievement. The harvest season was fast and furious. Both soybean and corn harvests were well ahead of the five-year average. Overall, the crops were extremely dry, but we still enjoyed favorable yields. We continue to evaluate our grain storage and grain receiving capacities and have continued to invest to meet our increased customer needs. We also had a considerable amount of fall fertilizer spread this year. This should take some of the pressure off our spring planting season.
December 31st marks the end of our fiscal year and the privilege of being in business for 89 years. While the year and financial numbers will not be final until after the audit in early 2025, the internal financials show that the cooperative will have another strong year. Planning, execution, product availability, customer service, and loyal members are the foundation for United Cooperatives' success. Thank you for that support!
Named a Top America 100 Cooperative
For over thirty years, the National Cooperative Bank (NCB) has released the annual NCB Coop 100, which highlights America's top 100 Cooperatives. These 100 cooperatives are member-owned, member-controlled businesses with a combined revenue of over $324 billion.
Many of the cooperatives that appear on the list are household names and are known worldwide. They represent farm supply, rural electrics, insurance, dairy, organic, retail, and manufacturing with recognizable cooperatives on the list, including CHS, Land O' Lakes, ACE Hardware Foremost Farms, Ocean Spray, Blue Diamond Almonds, and Organic Valley. United Cooperative ranked 29th of the agricultural cooperatives on this list and 54th cooperative overall.
Over the past 40 years, CropLife magazine has published its CropLife 100, which recognizes companies that influence and move the agriculture market. This year, United Cooperative was recognized as 20th out of the top 100. This is the sixteenth year in a row that United Cooperative has been recognized as one of the top 100 companies.
It is an honor to be recognized on these prestigious lists. However, no matter our size and scale or being mentioned on any list, we are only as good as the returns we generate through profitability and how we protect shareholder value for our members. That reality is demonstrated through our strong patronage programs paid to our members. $50.6 million in cash was returned to our customers this year alone. The re-investment made in the cooperative was over $100 million this past year. These two items are ways we continually protect shareholder value.
Our vision for the future has to parallel the agricultural changes of our farmers to create a positive customer experience where our farmers can "Rely On Us." To maintain this experience, please discuss your needs with one of our trusted advisors at United Cooperative as you prepare for your 2025 farm inputs. Decision-making, forecasting, planning, and execution all directly impact profitability at the farm and the cooperative.
Merry Christmas, and thank you again for your patronage in 2024. I look forward to a prosperous year in 2025.