Fuel Co-operatives & FUELIowa Together We Fuel Iowa

CHS/Cenex and GROWMARK are two major Co-op brands in Iowa, distributing fuel, propane, and lubricants to farmers and commercial businesses across the state and region. Historically, Co-ops have served Iowans for generations. We recognize there are many local independent fuel marketers serving Iowans. We take this opportunity to shine the light on Co-ops in Iowa. FUELIowa has a long history with Coops throughout the decades. They continue to be an important segment of the FUELIowa membership. FUELIowa will continue to be there as their strategic partner. To better understand this business, FUELIowa reached out to a few Co-op members. We learned the challenges of the Co-ops mirror the challenges of the private sector, hiring and maintaining quality employees, supply chain challenges, the cost of business during the global pandemic and national inflation.

The Co-op of today looks nothing like the Co-op of 100, 50, and even 10 years ago. In the 1960’s, biodiesel was science fiction. In 2022, biodiesel is a major product for Co-ops. Co-ops are invested in bringing the best fuel and the most efficient costs to Iowans.

Last year in Iowa, GROWMARK

Giving Back to Communities

GROWMARK’s Foundation has provided more than $500,000 in matching funding to member cooperative community initiatives for each of the last four years. Each year the Foundation gives more than $200,000 in scholarships, including support for students to attend the Agriculture Future of America annual leader conference.

Jason Stauffer, GROWMARK FS shared, “We are rural Iowa. Most of our locations are in very small communities.” technician, with completion confirmation ensuring our customers receive the on-time service they expect. That is one of the most important aspects of our industry.”

Education

Co-ops are finding new ways to use technology to educate their customers and provide opportunities to serve their clients more efficiently.

CHS/Cenex has over 55 branded co-op companies and provides key services such as fuel, propane, and lubricants. The enhanced CHS Giving Campaign allowed employees to give to a charity of their choice with a dollar-for-dollar match from CHS.

Technology

Co-op member owners are trying to figure out how to best integrate technology to maximize their efficiencies. Darin Schlapia shared, “United Farmer’s Cooperative has used onboard delivery truck computers and remote tank indicating methods to assist our drivers and customers. The most recent and helpful innovation our company has been able to develop is a central dispatching software system which allows many different sources of customer service orders to flow through one dispatching office to the right

“We have created a user-friendly online portal for customers. Customers can login to view and download statements, place orders for fuel or propane, pay balances and view and sign contracts. We’ve had a great response since we rolled out the online portal and will continue to add more features in the future.”

Employment and Careers

Co-ops offer growth and flexibility in the industry. Job training is the foundation of their industry, and a college degree is not required for many positions. Coops are active in recruiting high school graduates, many of whom participate in the Future Farmers of America (FFA) programs. An employee can start working part time in high school and advance in the company. The Co-op experience provides employees the ability to grow into leadership positions. Co-op employees are not frozen at one location. If your family needs to move to a different town, or even state, and the Co-op exists there, you can transfer and stay with the company.

According to the Iowa Association of Cooperatives, “If cooperative employees were grouped together, cooperatives would be in the top ten largest employers in Iowa.”

Co-ops are also faced with the challenge of recruiting and retaining good employees in the current market. Nationally, the environment for employees is very competitive. Hiring bonuses have been implemented, but one member shared they’ve found employees are “job hopping from one job to another, using the bonuses as an incentive. This is frustrating businesses, to say the least”.

Transportation and Regulation

It’s not just fixed site employees who are hard to find, drivers are in short supply for every industry. Governor Reynolds heard the concerns, including the united voice of FUELIowa members.

On December 5, 2022, Governor Reynolds announced an Entry-Level Driver Training Program to provide more opportunities for interested truck drivers to obtain their commercial driver's license (CDL) in Iowa. According to the

Governor, “If you got it, a truck driver brought it. This new program will break down barriers which currently exist for obtaining a CDL and provide support to organizations who sponsor these critical training opportunities right here in Iowa.”

Co-op members know FUELIowa is monitoring regulatory issues which allow members to focus on business profitability. FUELIowa represents Coops by advocating for innovative and quality fuel options, consumer and environmental protection, and fairness in the marketplace.

“It felt like no one listened, but when FUELIowa spoke up on our behalf during the legislative session, we were heard. The legislative work FUELIowa engaged on underground storage tanks really helped us,” shared one Coop employee.

The new CDL program is designed to help the trucking industry and will eventually benefit the fuel industry. Experts speculate the additional CDL drivers will allow the well-trained drivers to move into the fuel industry, helping ease the current driver shortage. The transportation issue is not limited to a lack of drivers and staff. Co-ops are finding creative ways to offset these challenges. Co-ops are building infrastructure to store more fuel, to ensure a local and regional supply for consumers.

When we join with FUELIowa as members, we demonstrate our economic and political strength with one unified voice. We are stronger together; Iowa is stronger overall.

Joe Kirkpatrick, GROWMARK remarked, “Together, we can work for the future of Iowa, our members, and agriculture”.

Together

, We FUEL Iowa!

We know that the true power behind the Cenex® brand comes from our locally-owned retailers – valued partners who are invested in their customers and community. That’s why we’re committed to your success and helping you build your business from the moment you become a Cenex® retailer. From flexible brand conversion and marketing, to convenient payment processing and training programs, we can provide your business with the support it needs to help you grow.

A name your customers trust, a brand you can count on –visit cenex.com/businessopportunities to learn more.