2009 Annual Report - Year in Review
GROWMARK officials have reported results
for the fiscal year that ended August 31. Senior Vice
President of Finance Jeff Solberg announced sales of $6.1
billion for the 2008-09 fiscal year; GROWMARK net income is
$96.9 million.
“The 2009 fiscal year has been
challenging for many farmers as they attempted to plant a
crop with extremely volatile pricing for fuel, fertilizer,
and grain,” said Bill Davisson, GROWMARK chief executive
officer. “Overall, I believe this has been a successful year
on many fronts, and when looked at historically, this is
still the third-highest income in our history.”
More than $82 million in patronage
refunds will be returned to GROWMARK member cooperatives.
Energy Division
The Energy Division posted strong income again in 2009.
Investments continue to be made in infrastructure with
biodiesel blending capabilities at the Menard County, Ill.
terminal and at Madison Service Company’s Roxana, Ill. bulk
plant.
GROWMARK received more than $50 million
in patronage from the National Cooperative Refinery
Association (NCRA). The cooperative owns nearly 19 percent
of the refinery operation located in McPherson, Kan.
Agronomy/Seed Divisions
GROWMARK Seed Division sales totaled $240 million, a 23
percent increase over last year. An increase in FS seed corn
volume helped lead the sales increase.
An 18 percent sales increase was
achieved by the Crop Protection Division. GROWMARK recently
reorganized field-level personnel to support crop
specialists in creating and delivering whole-farm cropping
plans through FS Green Plan Solutions.
Plant food operations resulted in a
loss for the year due to a very difficult declining price
environment throughout the year.
Davisson cited a worldwide economic
downturn, which created significant demand destruction and
oversupply of fertilizer, resulting in a huge drop in
fertilizer prices after inventories at GROWMARK were in
place for fall application.
Facility Planning and Supply
Division
The cooperative’s Facility Planning and Supply Division
posted increases in sales and gross income for the fourth
consecutive year. Contributing to this success was the
construction of commercial grain storage facilities and
programs with equipment manufacturers as FS member
cooperatives invested in application equipment and rolling
stock.
Grain Division
In addition to grain partnering efforts with local FS
member cooperatives in Illinois and Ontario, Canada, the
GROWMARK System is adding storage capacity and connecting
farmers with more end-use markets through a partnership with
Central States Enterprises.
MID-CO Commodities had $1 million in
income this year and will return $250,000 in cash patronage.
AgriVisor, LLC, a joint venture between
GROWMARK and Illinois Farm Bureau, continues to bring a
broad spectrum of products and services which help producers
develop and implement risk management strategies tailored to
their operations.
Financial Report
Report Summary
Letter to Shareholders
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