It is that time of year again where we have closed the books on our 12th year as Pro-Ag Farmers Cooperative. The audit has been completed and it has been a successful year for your cooperative.
Sales for the year were $46,013,742, down from are high last year of $52,650,576. Sales were down due to lower prices of products and lower markets in grain and milk as you are well aware of. The breakdown in sales by division is as follows: Feed and Miscellaneous $6,157,260, Propane $2,817,255, Creamery $3,562,470, Petroleum $1,296,009, Agronomy $10,434,598 and Grain $21,746,148.
The gross margins on these sales were 14.19%. The total expenses for the year were 12.44%. Local savings and patronage from other co-ops added together came to a net savings of $1,349,301. Of this total $829,000 was generated through savings on sales, and $519,575 was generated through patronage from other co-ops we buy products from and market milk and grain through. Local earnings were approximately $28,000 down when compared to last year. Patronage from other co-ops we do business with was down approximately $179,000 when compared to last year.
With the successful year we had we will be issuing dividends on a percentage of profit by division. As in past years thirty percent of your dividend will be paid in cash, which amounts to $279,330. The remaining seventy percent is in stock.
This year we received an equity retirement on milk that was marketed with Land 0' Lakes and First District Association. With the retirement we received, we will be able to retire milk equities for the balance of 1997, all of 1998 and 36% of 1999 for a total of $229,680. With the profit that was generated this year, the board of directors has authorized an equity payout on ag supply stock. We will be paying all of the 1991 ag supply equity which amounts to $359,719. When you add the cash portion and the retirement of equities together, Pro-Ag will be paying out 64% of our current year earnings.
The employee's and I would like to thank you for your support this past year. With your support we continue to upgrade equipment and facilities so we can continue to service your needs. This continued support also allows us to retire equity and maintain a strong balance sheet.
It is time again for our annual meeting. We will be holding our meeting at the Parkers Prairie Elementary School. The meeting will be held March 20th. We will again have the Douglas County Pork Producers make their pork chops for the meal. The meal will be served from 11:00 a.m. to 1:00 p.m. The meeting will start at 1:00 p.m. in the gym.
As in past years there will be three board of director's terms up for election; John Ledermann, Charles Debilzen and Matthew Ruckheim. Matt's position is director at large. This position can be filled by a member in any district. If you are interested in any of these positions, contact the nominating committee or myself. Members of the nomination committee are Delvyn Hollatz (218) 338-9631, Brad Lusty (218) 943-5851 and Wesley Torgrimson (218) 948-2162.
With the annual meeting soon approaching, spring is not far behind. With the large amount of dollars it takes to put in a crop it will be important to have your crop input financing in place. With the tighter grain and milk prices it is important to avoid the loss of discounts when not paid on time. For customers that let their accounts go past due last year it is critical that we know how you are financing your inputs before any charges will be allowed.
Let us know if you need help with financing as we continue to offer Agri-Span (Partners in Production) which has been used by are members. To be eligible for this program you will need to purchase crop insurance. Another popular program used by our members is Farm-Plan. If you need assistance in applying for either program contact your nearest agronomy location.
We will be passing out dividend checks at the annual meeting. I hope to see you there.
Cooperatively yours,
Mark Jaskowiak
