ANNUAL REPORT 2024
AG VALLEY CO-OP 2024 ANNUAL REPORT | 2 TABLE OF CONTENTS 3 Letter to Member Owners 4 About Ag Valley Co-op 5 History of Ag Valley Co-op 7 Financials 17 Scholar Spotlight 18 2024 Scholarship Recipients
LETTER TO MEMBER OWNERS
Dear Owners,
As we reflect on the past year, we are reminded of the resilience and dedication that define your company. Despite the challenges that have come our way, we have navigated through with a steadfast commitment to our goals and a clear vision for the future. This annual report is not only a testament to our achievements but also a roadmap for the journey ahead.
In the following sections, we will delve into the specifics of our performance, financial health, milestones achieved, strategic objectives, and the challenges we’ve faced. Our transparent and detailed account aims to provide you with a thorough understanding of our operations and the strategic decisions that drive our success.
In the spirit of continuous improvement, we have also initiated a series of internal projects aimed at increasing efficiency and optimizing our operations. From increasing dumping speed and storage in Maywood and Edison to the opening of a new facility in Jennings, KS, we are committed to making data-driven decisions that benefit our owners, members, and stakeholders.
Furthermore, we are dedicated to fostering a culture of excellence within our organization. Our leadership team is actively engaged in performance management, talent development, and succession planning to ensure that we are prepared for the challenges and opportunities that lie ahead.
Our recent board and management retreat was an opportunity for strategic planning that allowed us to step back from the day-to-day operations and focus on the long-term vision of our company. During our time together, we engaged in meaningful discussions about our core values, mission, and the impact we aspire to make in production agriculture in our trade territory and beyond. We also took the time to celebrate our collective achievements. The insights gained from our retreat have been instrumental in shaping our strategic initiatives for the coming year. We emerged with a renewed sense of purpose and a clear set of objectives that will guide our decisions and actions moving forward.
In conclusion, our journey through the 2024 fiscal year has been one of growth, resilience, and strategic foresight. We have faced challenges head-on, celebrated our successes, and laid the groundwork for a future that holds immense promise. Our commitment to our owners, customers, and employees remains unwavering, and we are excited for the opportunities that lie ahead.
As we close this chapter and look towards the horizon, we are filled with gratitude for your continued support and confidence in our direction. Together, we will continue to innovate, lead, and make a positive impact on the world.
Thank you for being a part of our story. We are eager to embark on the next phase of our journey with you.
Thank you,
Jeff Krejdl CEO/General Manager
Tyler Ruf Board President
AG VALLEY CO-OP 2024 ANNUAL REPORT | 3
ABOUT AG VALLEY CO-OP
Ag Valley Co-op is committed to the financial strength and long-term success of its members’ farms and businesses. The organization serves 4,873 members across 14 locations in Nebraska and Kansas and has since 1953. As a member-owned cooperative, members’ success is critical to the success of the business.
With an annual payroll in excess of $15.7 million, Ag Valley Co-op employs 210 individuals in careers across its administrative, grain, feed, fuel and agronomy departments. Competitive wages and a comprehensive benefit package including the Co-op Retirement Plan allow employees to reinvest in the local economies where they live and do business.
Ag Valley Co-op continues to be an active supporter of local agricultural youth groups such as 4-H and FFA, community events and various school programs. During the 2023-24 fiscal year the cooperative donated more than $160,000 in support for local community fundraisers and benefits. The cooperative also has a scholarship program that awarded $13,500 in scholarships to local high school students last year.
Ag Valley Co-op is one of the largest taxpayers in the counties in which it operates. Last year alone, Ag Valley Co-op paid $914,000 in property taxes, helping local communities and schools.
AG VALLEY CO-OP BOARD OF DIRECTORS
The Ag Valley Co-op board of directors is honored to represent the interests of the community. Elections take place annually and all active members, those that have done business with the cooperative in the previous 12 months, are eligible to submit nominations and vote.
OFFICERS
Tyler Ruf
President; Cambridge, NE
Drew tenBensel
Vice President; Arapahoe, NE
Lavern Banzhaf Secretary; Cambridge, NE
DIRECTORS
Leon Ehrke Orleans, NE
Todd Hartley Maywood, NE
Curtis Lowry Almena, KS
Dennis McConville Indianola, NE
Mark Miller North Platte, NE
Toby Spiehs Big Springs, NE
Doug Snyder McCook, NE
Darren Warner Edison, NE
ASSOCIATES
Brian Juenemann Norton, KS
D.J. Lunkwitz Maxwell, NE
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HISTORY OF AG VALLEY CO-OP
Established as Edison Non-Stock Cooperative in Edison, NE
Merged with Oxford Cooperative
Merged with Holbrook Cooperative
Merged with Bartley Cooperative
Purchased the Koch Facility in Arapahoe
Merged with Norton County Co-op
Merged with Holbrook Co-op
Merged with Farmers Cooperative Elevator Association in Big Springs
Purchased Stamford Elevator Company
Purchased Rogers Grain Company in Beaver City, NE
Merged with Hendley Cooperative
Offical Name Change to Ag Valley Co-op
Merged with Lebanon Cooperative Merged with Maywood Cooperative
Merged with Cambridge Co-op
Merged with Farmers Co-op in Eustis
Moved Corporate Headquarters to Arapahoe
Built Jennings, KS, facility
1997 AG VALLEY CO-OP 2024 ANNUAL REPORT | 5
1953 1971 1976 1979 1981 1990 2005 2006 2008 2013 2014
1996
2000 2023
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Photographer TYLER RUF
FINANCIALS
As we reflect on the 2023-24 fiscal year, we are filled with a sense of pride and optimism. Despite the challenges posed by the previous year’s drought, our cooperative has demonstrated remarkable resilience and adaptability. Our net savings this year are a testament to our robust financial management and our unwavering commitment to maintaining a strong balance sheet. This financial strength is the cornerstone that enables us to invest in state-of-the-art facilities and equipment, further enhancing our efficiency and service to our valued members.
A BROADER VIEW
At Ag Valley Co-op, we are dedicated to our members and owners, consistently delivering best-in-class service and making strategic investments that fortify our financial foundation. Our ability to navigate through economic fluctuations and unpredictable weather conditions is a reflection of our steadfast commitment to the agricultural community we serve.
Ag Valley Co-op takes its fiscal responsibility seriously and is constantly evaluating ways to improve operations, profitability, products and services.
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'05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 TOTAL ASSETS in millions $50 $100 $150 $200 $250 $300 $0 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 NET SAVINGS in millions $2 $4 $6 $8 $12 ($2) $10
'23 $350 '24 '21 '22 '23 '24
New Facility Jennings, Kansas
$14,000
AG VALLEY CO-OP 2024 ANNUAL REPORT | 8 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 CASH PATRONAGE in thousands $500 $1,000 $1,500 $2,000 $2,500 $0 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 EQUITY
ESTATE
in thousands $500 $600 $700 $800 $900 $0 $400 $300 $200 $100 '20 '21 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 CAPITAL
in thousands $2,000 $4,000
RETIREMENT &
PAYMENT PROGRAM
ASSET ADDITIONS
$6,000 $8,000 $10,000
$0
'23 '23 '22 '24 '24
BRANIGAN SCHABEN '23 $16,000 $18,000 $22,000 $20,000 $24,000 $26,000 $30,000 $28,000 $32,000 $34,000 $36,000 '24
$12,000
Photographer
AG VALLEY CO-OP 2024 ANNUAL REPORT | 9
Photographer
TRISTAN WESTPHAL
STATEMENTS OF OPERATIONS
Despite softer commodity prices and reduced grain volumes, our other operating revenues have seen a significant uptick. This increase, particularly in storage and handling income, is a direct result of our producers’ strategic decisions to optimize their grain management. Additionally, our agronomy division’s fertilizer application income has surged, indicating increased activity and trust in our services.
STATEMENTS OF OPERATIONS
Years Ended February 29, 2024 and 2023
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SALES 2024 2023 Grain $ 209,360,846 $ 373,765,800 Supply 104,482,642 105,941,373 TOTAL SALES 313,843,488 479,707,173 COST OF SALES Grain 196,006,372 359,227,596 Supply 92,435,769 85,139,409 TOTAL COST OF SALES 288,442,141 444,367,005 GROSS MARGINS ON SALES 25,401,347 35,340,168 OTHER OPERATING INCOME Storage and Handling 4,559,350 2,731,700 Drying Income 488,458 297,781 Application Income 3,350,959 2,432,711 Feed Services 288,232 294,104 Station Services 133,644 154,836 Trucking Income 1,166,226 1,495,037 Finance Charges and Interest Income 204,969 159,715 Gain on Disposal of Property, Plant, and Equipment 382,923 254,982 Miscellaneous 200,012 211,396 TOTAL OTHER OPERATING INCOME 10,774,773 8,032,262 GROSS INCOME FROM LOCAL OPERATIONS 36,176,120 43,372,430 OPERATING EXPENSES Personnel costs 15,785,135 14,895,683 Fixed Expenses 13,484,318 14,861,119 Other Operating Expenses 12,716,905 12,259,322 TOTAL OPERATING EXPENSES 41,986,358 42,016,124 EARNINGS (LOSS) FROM LOCAL OPERATIONS (5,810,238) 1,356,306 OTHER EARNINGS Patronage Dividends 6,834,823 5,506,508 Gain on Involuntary Conversion 49,604 70,592 TOTAL OTHER EARNINGS 6,884,427 5,577,100 EARNINGS BEFORE INCOME TAXES 1,074,189 6,933,406 INCOME TAXES (BENEFIT) (20,176) 110,416 NET EARNINGS $ 1,094,365 $ 6,822,990 DISTRIBUTION OF NET EARNINGS Patronage Dividends $ - $ 2,000,003 Retained Earnings 1,094,365 4,822,987 TOTAL $ 1,094,365 $ 6,822,990
Total personnel expenses increased due to labor shortages and inflation
Our personnel expenses have seen a marginal increase, a necessary adjustment in response to the ongoing labor market challenges and inflationary pressures. We recognize that our employees are the foundation of Ag Valley Co-op, and investing in human capital remains a top priority. Their dedication to controlling expenses and seeking efficiencies is what allows us to continue delivering the exceptional quality products and services you expect from us.
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Photographer JUSTIN ABBOTT
BALANCE SHEETS
Our balance sheet remains robust, with total assets amounting to $245 million as of February 29, 2024. The completion of construction projects and ongoing developments have contributed to a net increase in assets, showcasing our cooperative’s growth and stability.
BALANCE SHEETS: ASSETS
February 29, 2024 and 2023
Facility Improvements Orleans, Nebraska
AG VALLEY CO-OP 2024 ANNUAL REPORT | 12 CURRENT ASSETS 2024 2023 Cash $ 582,229 $ 586,347 Accounts Receivable - Trade 3,602,627 2,469,059 Allowance For Credit Losses (240,000) (240,000) Grains Receivable - Trade 7,670,476 9,659,066 Margin Deposits 232,908 2,037,067 Grain Storage Receivable 2,989,230 1,445,408 Other Receivable 304,839 7,060,285 Inventories 110,174,770 126,134,377 Prepaid Commodities and Expenses 8,238,023 6,645,750 TOTAL CURRENT ASSETS 133,555,102 155,797,359 INVESTMENTS Equity in Other Cooperatives 27,650,343 27,579,362 OTHER ASSETS Property and Equipment, Net 81,017,261 55,099,876 Right-Of-Use Assets 2,402,176 1,171,207 Interest Rate Swaps 432,927 518,328 Prepaid Expenses 45,000 45,000 Deferred Income Tax 14,780TOTAL OTHER ASSETS 83,912,144 56,834,411 TOTAL ASSETS $ 245,117,589 $ 240,211,132
Our financial strategy is characterized by prudent and strategic partnerships, exemplified by our operating line of credit and term debt with Cobank. These financial instruments, along with leases for essential fertilizer application equipment, are integral to our operational success. We continue to carry substantial balances in our grain contract liabilities, a reflection of the trust you place in us for the management of your spring 2024 crop inputs.
Your membership equity in Ag Valley Co-op has seen a commendable increase from the previous year, a clear indicator of our cooperative’s financial health and your unwavering support. The Ag Valley Board is actively engaged in evaluating opportunities to enhance member value, including the potential payback of deferred equity. This past year, we were delighted to distribute $619,000 back to our members through equity retirements and estate payments, reinforcing our commitment to delivering tangible returns on your business with Ag Valley Co-op.
BALANCE SHEETS: LIABILITIES AND MEMBERS’ EQUITY
February 29, 2024 and 2023
AG VALLEY CO-OP 2024 ANNUAL REPORT | 13 CURRENT LIABILITIES 2024 2023 Accounts, Taxes, and Expenses Payable $ 9,481,948 $ 5,440,644 Checks Written in Excess of Bank Balance 5,206,078 3,903,791 Grain Contracts Payable 37,812,420 23,181,381 Collections Received in Advance 20,092,310 28,801,883 Notes Payable - Seasonal Line of Credit 34,184,482 63,290,312 Current Maturities of Long-Term Debt 4,000,000 4,000,000 Finance Lease Liabilities 861,330 194,912 Operating Lease Liabilities 683,225 565,765 Patronage Dividends Payable - 1,000,000 TOTAL CURRENT LIABILITIES 112,321,793 130,378,688 LONG-TERM LIABILITIES – Excluding Current Maturities Notes Payable 29,813,000 15,000,000 Finance Lease Liabilities 7,801,447 496,937 Operating Lease Liabilities 806,400 348,820 Deferred Income Tax - 16,630 TOTAL LONG-TERM LIABILITIES 38,420,847 15,862,387 MEMBERS’ EQUITY Memberships 150,700 152,400 Certificates of Participation 336,600 323,600 Members' Equity Credits 24,929,460 25,561,880 Acquisition Equity 3,879,715 3,879,715 Retained Savings 64,706,157 63,606,694 Accumulated Other Comprehensive Income 372,317 445,768 TOTAL MEMBERS’ EQUITY 94,374,949 93,970,057 TOTAL LIABILITIES AND MEMBERS’ EQUITY $ 245,117,589 $ 240,211,132
New
Arapahoe,
Corporate Office
Nebraska
CHANGES IN FINANCIAL POSITION
As we embark on the 2024-25 fiscal year, Ag Valley Co-op’s strong working capital has positioned us ideally for future capital improvements and a robust equity retirement and cash patronage program. Our financial resilience and strategic foresight are the driving forces that will continue to propel us forward, ensuring our cooperative’s success and the prosperity of our members.
SCHEDULES OF CHANGES IN FINANCIAL POSITION
Years Ended February 29, 2024 and 2023
AG VALLEY CO-OP 2024 ANNUAL REPORT | 14 FUNDS PROVIDED 2024 2023 Net Earnings $ 1,094,365 $ 6 ,822,990 Patronage Dividends Payable Currently - (1,000,000) 1,094,365 5,822,990 Items Included in Net Earnings (Loss) Not Affecting Working Capital Depreciation and Amortization 6,731,958 6 ,873,053 Amortization of Right-of-Use Assets 1,178,772 514,091 Gain on Disposal of Property and Equipment (392,592) (244,289) Gain on Involuntary Conversion (49,604) (70,592) Patronage Dividends Received as Investments (3,202,610) (2,141,261) Deferred Income Tax Expense (Benefit) (19,461) 48,040 WORKING CAPITAL PROVIDED FROM OPERATIONS 5,340,828 10,802,032 Proceeds from Sale of Property and Equipment 1,071,228 495,077 Investments Redeemed 3,131,629 982,311 Decrease in Other Assets - 1,137 Advance on Long-Term Notes Payable 18,813,000 1,523,022 Increase in Finance Lease Liabilities 9,240,000Increase in Operating Lease Liabilities 2,407,771Under Allocation of Prior Year’s Patronage 2,542 3,404 TOTAL FINANCIAL RESOURCES PROVIDED 40,006,998 13,806,983 FUNDS APPLIED Additions to Property, Plant & Equipment 33,278,375 6 ,710,928 Increase in Right-of-Use Assets 2,409,741 1,685,298 Current Maturities of Long-Term Notes Payable 4,000,000 4,000,000 Current Maturities of Finance Lease Liabilities 861,330 194,912 Current Maturities of Operating Lease Liabilities 683,225 565,765 Payments on Long-Term Notes Payable - 742,563 Payments on Finance Lease Obligations 1,074,160Payments on Operating Lease Obigations 1,266,966Redemption of Members’ Equity 618,563 891,363 TOTAL FUNDS APPLIED 44,192,360 14,790,829 Increase (Decrease) in Working Capital (4,185,362) (983,846) Working Capital - Beginning of Year 25,418,671 26,402,517 WORKING CAPITAL – END OF YEAR $ 21,233,309 $ 25,418,671
4,873
AG VALLEY CO-OP 2024 ANNUAL REPORT | 15 FINANCIALS: THE UPSHOT COMMUNITY SUPPORT Net Savings $1.1M
14 LOCATIONS
210 $160K FOR LOCAL SUPPORT $914K PROPERTY TAXES $19M PATRONAGE SINCE 2002
EMPLOYEES MEMBERS
Photographer DUDLEY KARLSON
Donation to
BUILDING LOCAL SUCCESSTOGETHER
Maywood FFA
Support to
Support to
Donation to Oxford Food Pantry
Donation to
Donation to
2023 - 2024
$160K
In Local Support
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North Platte Fire & Rescue
Cambridge FFA
Deuel County Fair Livestock Auction
Hayes County Fair Livestock Auction
SCHOLAR SPOTLIGHT
MEGAN AMOS
Megan Amos, a fourth-generation rancher from Stapleton, Nebraska, has always been driven by a desire to make a meaningful impact. Her story is one of determination, growth, and the transformative power of education.
Her journey to the University of Wyoming was paved with the values of hard work and perseverance instilled in her from a young age. As she delved into the world of Agriculture Communications, a spark was ignited within her—a spark that grew into a blazing passion for Marketing and Communications. Megan’s exposure to business classes opened her eyes to the broader influence she could wield with a marketing degree.
She is active in the University of Wyoming’s Women in Business Club. The club’s mission is to empower and promote women in business. This aligns perfectly with her academic and career goals, as she seeks to leave a lasting impact in the marketing world.
She was a 2021 recipient of the Ag Valley Co-op Scholarship and 2023 recipient of the Triangle Insurance Scholarship, who provides cooperative’s patron’s students the ability to further their education in college. Both scholarships have aided Megan in pursuing her degree. It even helped her discovery of the Oral Communication Center during the semester she enrolled in Public Speaking. This discovery has been one of the most valuable in her college education.
Megan’s advice to students is clear: seize every opportunity, especially internships, as they can supplement classroom learning and open doors to new experiences. Her future aspirations include freelance marketing, social media, and connection with ranchers and the agricultural community. This summer, she will be the Marketing Intern at Ag Valley Co-op.
I would encourage students in college to try new things and be open to new opportunities. I never thought I would be a marketing student when I started, but I opened myself up to the opportunity and I am so glad I did.
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2024 SCHOLARSHIP RECIPIENTS
No Photo Available
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Alma High School Alek Molzahn
Cambridge Public School Bailee Ahlemeyer
Maywood Public School Hadyn Farr
Norton Community High School Tana Breiner
Southern Valley High School Braxton Hammond
Southwest Jr. Sr. High School Tristan Martin
Alma High School Austin Schmidt
Cambridge Public School Brenna Deterding
Dundy County Stratton High School Alyssa Schneider
McCook Senior High School Addyson Snyder
Norton Community High School Mackenzie Clydesdale
Southern Valley High School Lily Holste
Southwest Jr. Sr. High School Brianna Rae
Alma High School Dominic Schmidt
Cambridge Public School Leah Downer
Eustis - Farnam Public Schools Dallas Weitzel
Medicine Valley Jr/Sr High School Bailley Nelsen
Norton Community High School Madeline Miller
Southern Valley High School Sarah Holste
Southwest Jr. Sr. High School Haylee Thomas
Arapahoe High School Campbell Schutz
Cambridge Public School Jalen Kent
Hitchcock County Jr/Sr High School Taylor Hubl
Northern Valley High School Braxton Cox
Phillipsburg High School Harley Glynn
South Platte Public School Colton Babst
Stapleton High School Ethan Weems
Arapahoe High School Berkley Warner
Cambridge Public School Emma Rasmussen
Hitchcock County Jr/Sr High School Katie Jarecke
Northern Valley High School Jason Cox
Southern Valley High School Kota Batt
South Platte Public School Dashle Richards
Medicine Valley Jr/Sr High School Halee Sheffield
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MITCH
www.agvalley.com
Photographer
HOUSER