2025 Annual Report by agvalleycoop

ANNUAL REPORT 2025

LETTER TO MEMBER OWNERS

Dear Owners,

As we reflect on the past year, we are reminded of the resilience, dedication, and shared purpose that continue to define our company. Despite the challenges we’ve faced, we have remained focused on our goals and united by a clear vision for the future. This annual report not only celebrates our accomplishments—it serves as a roadmap for the journey ahead.

In 2025, we built upon the strong foundation established in previous years. Our financial position remains solid, supported by a strong balance sheet and healthy working capital. Notably, we redeemed over $700,000 in deferred equities—a milestone reflecting our ongoing commitment to our members and long-term sustainability

We’ve also made significant progress in our strategic initiatives, focusing on operational efficiency and continuous improvement. Our dedication to serving our partners—by staying relevant in a changing marketplace and delivering meaningful value to your family farms—has never been stronger. Our leadership team remains engaged in performance management, talent development, and succession planning to ensure we’re prepared for both current challenges and future opportunities.

Strong relationships with our members and communities continue to drive our success. We are investing in our facilities and equipment to ensure that we can meet your needs today and support long-term growth. Enhancements such as increased dumping speed and storage capacity in Maywood, along with added efficiency and space in Edison, reflect our commitment to data-driven decision-making and long-term benefit for all stakeholders.

Beyond operations, our partnerships with local schools and youth programs remain a priority. These efforts help nurture the next generation of agricultural leaders and foster continued prosperity in our region.

This year, our board and management retreat offered a valuable opportunity to step back from daily operations and focus on long-term strategy. Through meaningful discussions about our mission, core values, and aspirations, we emerged with renewed focus and a strategic path forward that will guide our actions in the coming year

The 2025 fiscal year has been marked by growth, resilience, and strategic clarity. We’ve met challenges head-on, celebrated key wins, and set the stage for a promising future. Our unwavering commitment to our owners, customers, and employees remains at the heart of everything we do.

As we close this chapter and look ahead, we are deeply grateful for your continued trust and support. Together, we will continue to innovate, lead, and make a lasting impact.

Thank you for being part of our story. We’re excited to embark on the next phase of our journey with you.

Thank you,

Jeff Krejdl CEO/General Manager

Tyler Ruf Board President

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 4,775 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 $16 million, Ag Valley Co-op employs 202 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 2024-25 fiscal year the cooperative donated more than $180,000 in support for local community fundraisers and benefits. The cooperative also has a scholarship program that awarded $9,500 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 $890,000 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

Brian Juenemann Norton, KS

Dennis McConville Indianola, NE

Mark Miller North Platte, NE

Toby Spiehs Big Springs, NE

Doug Snyder McCook, NE

Darren Warner Edison, NE

ASSOCIATES

D.J. Lunkwitz Maxwell, NE

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

Photographer MICHELLE HILKER

FINANCIALS

Ag Valley Co-op saw reasons for optimism during the 2024-25 fiscal year despite the scarcity posed by another drought year. First and foremost, your cooperative posted another year of positive net savings. Our commitment to maintaining a strong balance sheet allows us to continue to offer state-of-the-art facilities, equipment and best-in-class service despite struggles brought on by mother nature. You can continue to count on your cooperative’s strength to help you manage that input price risk while ensuring that you have the inputs you need for your operations.

A BROADER VIEW

We at Ag Valley Co-op, continued to keep an eye toward the future during the most recent fiscal year as we saw significant upgrades to two grain facilities. With these strategic investments, your cooperative is not only strengthening our financial foundation but we are also strengthening our commitment to the communities we serve.

Ag Valley Co-op takes its fiscal responsibility seriously and is constantly evaluating ways to improve operations, profitability, products and services.

Photographer DOTTI LOOMIS

Photographer LAURA DEAVER

Photographer RIKKI LUCE

STATEMENTS OF OPERATIONS

Commodity and Crop input prices softened during the fiscal year leading to a decrease in total sales dollars. Volumes however were steady or up in all business units. The increase in storage and handling led the increase in Other Operating Income. We are pleased to offer assets that our producers continue to trust with their grain management.

STATEMENTS OF OPERATIONS

Years Ended February 28, 2025 and February 29, 2024

Total personnel expenses increased due to labor shortages and inflation

Personnel expenses increased marginally as the cooperative balances spend with investments in human capital. Fixed expenses and other operating expenses both increased as the cost of capital and inflationary pressures challenged the cooperative. We installed cost saving measures during the fiscal year that will allow us to continue to monitor our operating expenses as those pressures continue into the next fiscal year. .

Photographer KELSI BOSE

BALANCE SHEETS

The cooperative’s balance sheet remains strong with a significant increase in total assets to $331.5 million as of February 28, 2025. This increase was contributed to by the strong fall harvest in 2024. Property and Equipment increased this year as the Co-op continues to invest in assets to better serve our patrons.

BALANCE SHEETS: ASSETS

February 28, 2025 and February 29, 2024

The liabilities portion of the balance sheet highlights our use of committed partnerships to better serve our customers. Our operating line of credit with CoBank allows us to purchase your grain when you are ready to sell and to secure your spring inputs. Our partnership with the Cooperative Financing Association allows us to offer Ag Valley Financing to better serve your prepay and other input financing needs.

Your membership equity in Ag Valley Coop stayed steady during the fiscal year. A sign of the health of your coop during a year full of market headwinds. 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 $728,000 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.

MEMBERS’ EQUITY

February 28, 2025 and February 29, 2024

CHANGES IN FINANCIAL POSITION

As we enter the 2025-26 fiscal year, Ag Valley Coop is well-positioned to pursue future capital improvements and maintain a robust equity retirement and cash patronage program, thanks to our strong working capital position. Our financial stability and strategic planning are key factors in driving our continued progress, ensuring the success of our cooperative and the prosperity of our members.

SCHEDULES OF CHANGES IN FINANCIAL POSITION

Years Ended February 28, 2025 and February 29, 2024

4,873

Donation to Support to Donation to Donation to Support to Donation to

Fire & Rescue

Harlan County Fair Livestock Auction

Southwest FFA

Norton County Fair Livestock Auction

Ogallala FFA

Arapahoe Library Foundation

SCHOLAR SPOTLIGHT

KIANA MARTIN

Kiana Martin, senior at Fort Hays State University majoring in Agronomy, hails from a farm outside of Indianola, Nebraska. Her passion for agriculture and dedication to her academic and professional growth have made her a standout student in the Agronomy program at FHSU.

As the President of the FHSU Agronomy Business Club, President of Delta Tau Alpha (Ag Honor Society), and Vice President of Sigma Alpha, Kiana has been key in fostering a community that encourages networking, skill-building, and learning about the agriculture industry. In addition to her leadership roles, she is also an active member of the Collegiate Farm Bureau.

Kiana has been recognized for her academic achievements, receiving the 2023 Ag Valley Scholarship and a 2024 Tom Hanson Memorial Scholarship recipient. Last summer, she gained valuable experience as an intern at Ag Valley, under the mentorship of Mitch Houser. Her hard work and dedication have left a lasting impression, and we are excited to announce that Kiana will be returning this summer for her second Agronomy internship with Ag Valley.

Kiana is excited to bring the skills and knowledge she has gained in her studies to her upcoming internship. She looks forward to applying what she’s learned in a practical setting and is eager to meet and collaborate with the other interns. She’s passionate about continuing her growth in both agronomy and sales, and the entire Ag Valley team is thrilled to watch her continue to thrive.