GROWMARK reports year-end results

At the GROWMARK Annual Meeting in Chicago, Vice President of Finance Jeff Solberg reported unaudited, estimated after-tax results on a consolidated basis. The agricultural cooperative posted sales for the 2003-04 fiscal year of $2 billion, up more than $350 million from last year. GROWMARK had net income of 29.8 million, compared to $19 million last year. Patronage of more than $25 million will be paid to GROWMARK member cooperatives.

Divisional Results

In the Energy Division, volume grew to more than one billion gallons of gasoline, distillates, and propane. Geographical expansion helped fuel the volume.

"Member cooperatives continue to use the Home Grown Fuels campaign to promote both ethanol and soy biodiesel products," Solberg said. "Approximately 70 percent of gasoline marketed by FS member cooperatives contains a 10 percent ethanol blend. Strong demand is expected to continue for renewable fuels."

GROWMARK holds ownership in National Cooperative Refinery Association (NCRA). The energy cooperative had strong earnings from refining margins this year, returning $23 million in patronage to GROWMARK.

UPI Inc., the Ontario-based energy company jointly owned by GROWMARK and Suncor Energy Products Inc., is a major fuel supplier in the province. GROWMARK projects a dividend from UPI of $1.2 million for 2004, according to Solberg.

According to Solberg, sales of plant food showed an increase of 13 percent, and crop protection sales were up about five percent. The GROWMARK Seed Division had solid increases in sales and gross income.

The cooperative's Facility Planning and Supply Division results were lower than last year. Demand for grain systems and buildings started strong, but steel price increases and lack of availability slowed demand in spring and summer. Facility equipment sales and income increased, Solberg added.

In the Grain Division, volume from members was down four percent. Ethanol plants in Iowa and Missouri, plus large rail shippers in Iowa, Missouri, and Illinois, continue to be strong competitors for grain volume.

Decision Commodities, LLC was formed for use by grain members to help their customers put more structure in their grain marketing. The grain is delivered to the member cooperative and priced by Decision Commodities with risk tolerance input by the farmer.

MID-CO COMMODITIES recorded another profitable year. MID-CO offers commodity hedging and advisory services to member cooperatives and their producers through the Bloomington, Ill. and Des Moines, Iowa offices, and to farmers through branch offices at member cooperatives. MID-CO earnings were $1.3 million; and $650,000 in patronage will be paid to members this year, all in cash.

FS Agri-Finance®, a financing program administered through an alliance agreement with ProPartners Financial, is an important marketing tool as local co-ops provide products and services to farmers. FS Agri-Finance is expected to realize loan drawdowns of more than $140 million, a record year.

GROWMARK FS, the subsidiary operation which serves the retail market in New York, Pennsylvania, New Jersey, Maryland, Delaware, and Virginia, had sales of $105 million, and operations were profitable. Seedway, which wholesales $56 million of farm, turf, and vegetable seeds across the eastern United States, was also profitable.

"With a strong balance sheet as a base and an improving operating statement, GROWMARK is in sound financial condition," he added.

GROWMARK elects directors and officers

Shareholders of GROWMARK, a regional agricultural cooperative based in Bloomington, Ill., elected 16 directors to serve as its governing board today. The election, which took place at the cooperative's Annual Meeting in Chicago, was unique because previously approved bylaw changes called for the reduction in the size of the Board of Directors from 24 to 16 this year.

Fifteen of the 16 director seats, established by geographic zone, were elected. GROWMARK has six established governance zones which cover all of North America. There are multiple directors per zone, and they will serve staggered terms of one, two or three years. In addition, one director-at-large was selected to represent Illinois, Iowa, and Wisconsin Farm Bureaus. GROWMARK is affiliated with Farm Bureau in those states.

Successful in election to the GROWMARK Board of Directors were the following active farmers:

Zone A

3-year term: Dan Kelley of Normal, Ill. has served on the GROWMARK Board since 1995. He served as chairman of the board and president since 2000. He and his wife Pam operate a grain farm in partnership with his two brothers. He currently serves as president for Evergreen FS, Inc., Bloomington, Ill.

2-year term: Rick Nelson of Paxton, Ill. has served on the GROWMARK Board since 1990. He has served the board as secretary. He and his wife Pat operate a 2,100 acre cash grain farm. He currently serves as president for Ludlow Cooperative Elevator Company, Ludlow, Ill.

1-year term: Bob Phelps of Rockton, Ill. has served on the GROWMARK Board since 1997. He and his wife Amy operate a 2,200 acre family farm partnership, as well as a 300 head beef feed lot. He currently serves as a director for the Illinois Agricultural Association, Bloomington, Ill.

Zone B

3-year term: Chet Esther of Frederick, Ill. has served on the GROWMARK Board since 1994. He and his wife Lori operate a 3,500-acre grain farm. He is also a forester and works with a private forester in Missouri. He currently serves as president of Two Rivers FS, Inc., Rushville, Ill.

2-year term: Mike Hennenfent of Gilson, Ill. has served on the GROWMARK Board since 1997. He and his wife Judy operate a 1,700 acre grain and livestock farm with their sons. He currently serves as director for RIVERLAND FS, Inc., Knoxville, Ill.

1-year term: David Watt of Murrayville, Ill. has served on the GROWMARK Board since 2002. He and his family farm 1,200 acres. He also has custom bulldozing and grain hauling operations. He currently serves as president for Lincoln Land FS, Inc. Springfield, Ill.

Zone C

3-year term: John Reifsteck of Champaign, Ill. has served on GROWMARK Board since 1993. He has served the board as vice chairman. He and his wife Nancy operate a corn and soybean farm. John currently serves as president for Illini FS, Inc., Urbana, Ill.

2-year term: Randy Newcomb of Ashley, Ill. has served on the GROWMARK Board since 1987. He is a director for AgriPride FS, Inc., Nashville, Ill.

1-year term: Gary Leber of Valmeyer, Ill. has served on GROWMARK Board since 1993. He and his wife Karen farm 1,200 acres and raise beef cattle. He currently serves as vice president of Gateway FS, Inc., Red Bud, Ill.

Zone D

3-year term: Ray Steffens of West Union, Iowa has served on the GROWMARK Board since 1999. He and his wife Pam farm 1,000 acres. They also custom feed 5,000 head of hogs each year, and milk 50 registered Holsteins. He currently serves as a director for AgVantage FS, Inc., Waverly, Iowa.

2-year term: Newly-elected to the GROWMARK Board was Allen Tanner of Creston, Iowa. Tanner and his wife Candi operate a 2,000 acre farm and a cow-calf operation. He currently serves as president for Rolling Hills FS, Inc., Winterset, Iowa.

1-year term: Also newly-elected to the GROWMARK Board was Matt Heitz of Farley, Iowa. Heitz and his wife Marna operate a livestock and grain farm. He also coordinates agricultural programs for Northeast Iowa Community College and the National Education Center for Agricultural Safety. Heitz currently serves as president for Three Rivers FS, Inc., Earlville, Iowa.

Zone E

2-year term: Bill Hanson of Dodgeville, Wis. has served on the GROWMARK Board since 1991. He and his wife Nancy own and operate 600 acres. He currently serves as board advisor for Frontier FS, Inc., Jefferson, Wis.

Zone F

3-year term: Len Mortson of Oro Station, Ont. has served on the GROWMARK Board since 1995. He and his wife Marg farm 250 acres of cropland with their son. He is also an enthusiastic showman of Jersey cattle. He currently serves as a director of Simcoe District Co-op, Barrie, Ont.

1-year term: Newly-elected to the GROWMARK Board was John Eccles of Durham, Ontario. He and his wife Cathy lease a 50-acre cash crop farm. He is also Farm Manager for Aberdeen Farms. He currently serves as vice president for North Wellington Cooperative, Harriston, Ont.


Farm Bureau Director: Representing Illinois, Iowa, and Wisconsin Farm Bureau for a three-year term is Henry Kallal of Jerseyville, Ill. He has been a member of the Illinois Agricultural Association Board of Directors since 1999. He and his wife Marie operate an 1800-acre grain farm with his brother and their son.

At a reorganization meeting, officers elected were: Kelley, chairman; Reifsteck, vice chairman; Nelson, vice chairman; and Esther, secretary.

Retiring from the board were: Keith Bailey of Grinnell, Iowa; Scott Durbin of Owaneco, Ill., Larry Dynes of Kewanee, Ill., Larry Gonseth of Murray, Iowa, Craig Hill of Milo, Iowa, Jim Holte of Elk Mound, Wis., John Keunen of Drayton, Ont., Bill Raben of Ridgway, Ill., Steve Riskedal of Leland, Ill., John Rosenbohm of Hanna City, Ill., Bill Sahs of Lincoln, Ill., and Dick Walters of Woodstock, Ill.

GROWMARK is a regional agricultural cooperative with more than 300 local cooperative members and subsidiary operations spanning 14 states and Ontario, Canada. Some 200,000 farmers are served with quality products and services through the locally owned and globally strong GROWMARK System.

GROWMARK, Inc. is a federated regional cooperative that provides agriculture-related products and services in 21 states and Ontario, Canada. Visit the GROWMARK Web site at www.growmark.com