News

Growmark estimates $6.1 billion in sales

Growmark estimates sales for the fiscal year ending August 31 to be $6.1 billion, according to Jeff Solberg, senior vice president of finance for the cooperative. In addition, Growmark’s fiscal year net income is estimated at $75 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, in a news release issued Friday. “Overall, I believe this has been a successful year on many fronts, and when looked at historically, this is still projected to be the fourth-highest income in our history.”

More than $62 million in patronage refunds will be returned to Growmark member cooperatives.

Energy Division
The Energy Division posted its gross income of $92 million. Investments continue to be made in division 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. The cooperative owns nearly 19 percent of the refinery operation located in McPherson, Kan.

Agronomy/Seed Divisions
Growmark Seed Division sales will top $250 million, a 30 percent increase over last year. FS corn sales grew 5 percent this year, Davisson said.

A 20 percent sales increase is projected by the Crop Protection Division, with gross income estimated at $34 million, according to the release. 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, on the other hand, resulted in a gross income loss, according to the release.

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. “Still, if you evaluate plant food results over 24 months instead of 12, it was the best period of internal income in our history,” said Davisson.

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 the 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.Growmark is a regional cooperative providing agriculture-related products and services and grain marketing in the Midwest.