Growmark Inc. reported estimated unaudited net income of $75 million on sales of $6.1 billion for the fiscal year ending Aug. 31, 2009, compared to the year-ago record earnings of $312 million on sales of $6.3 billion. “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 CEO. “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.”
Plant food operations resulted in a gross income loss of $3-$5 million compared to the year-ago performance, which was the unit’s second-best in history. Sales volumes were down slightly more than 20 percent from year-ago levels. 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.”
A 20 percent sales increase is projected by the crop protection division, with gross income estimated at $34 million. Growmark recently reorganized field-level personnel to support crop specialists in creating and delivering whole-farm cropping plans through FS Green Plan Solutions.
Growmark’s seed division sales will top $250 million, a 30 percent increase over last year. FS corn sales grew 5 percent this year.
Growmark said that more than $62 million in patronage refunds will be returned to member cooperatives, versus the year-ago $121 million.
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.
The energy division posted 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 Co.’s Roxana, Ill. bulk plant.
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.
In addition to grain partnering efforts with local FS member cooperatives in Illinois and Ontario, Growmark 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 that help farmers develop and implement risk management strategies tailored to their operations.