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2019 ANNUAL REPORT


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2019 MKC ANNUAL REPORT


Perseverance is the story of agriculture. Ralph Waldo Emerson said, “Perseverance is not about what you have come through or what lies ahead of you, but what is in you.� When we look at the membership of MKC, we see first generation farmers and ranchers and multi-generation operations, traditional and unconventional, local and global growers, farmers and ranchers who produce grains, cotton, beef, pork, lamb, dairy, and forage crops. We have agri-tourism and agribusiness, teachers, community leaders and volunteers, city councilmen, environmental consultants, bankers and homemakers. Despite our many blessings, farmers and ranchers are no strangers to the storms of life, both literal and figurative. Late freezes, extended droughts, pest pressure and excessive rains are a fact of life for all of agriculture. There is no argument that weather is the one component of agriculture that can never truly be managed or predicted. Our farmers will persevere. They will not give up. They will overcome. They will withstand the storms and persist. They will not stop. They will sustain the course and continue their mission. Research has backed much of the claims that it is the day in and day out efforts that pay off in the long run. The little day-to-day challenges and obstacles we encounter can be overcome. Driven from the inner motivation that fuels the person or group, it is the perseverance and determination that keep all of us focused on the goal. SHARED GROWTH. SHARED SUCCESS.

3


LEADERSHIP LETTER Dear MKC Member-Owners, Customers, Employees, and Communities,

Important Gaol

Grit

WORK

Diligence

Fortitude

proved to us the importance of having a plan that is shared and implemented across the entire team. While we didn’t set another record in earnings or sales, we did end with a fiscal year right on target. “Past performance is not an indicator of future Without a doubt, the dedication of member-ownsuccess.” This phrase can often be found on iners and employees’ continued support is why we spirational messages or in an office. We are often had another successful year of solid financial perreminded in our personal life, business and at the formance. Just like farming, there are years that cooperative everything is that the past going in a posonly indicates itive direction, the amount Purpose but then the of success or wheel falls off. failure someone In these times, has endured or Backbone it is important achieved. If we to remember want something that past perforto change, it is mance, as they up to us. Resolution say, may not be This past fiscal an indicator of year was one future success. where we found MKC once ourselves lookagain focused ing at our plan efforts around and wondering our intent to how we were grow as an going to attain organization the results we and fixated on had planned. We providing the restarted the year Certainty sources to help off extremecustomers and ly strong and member-owners everything was achieve more going according success. We to the plan, but then the excess moisture arrived. After the rains, most of our input businesses struggled. recognize it is generally not the big things we do that make the difference, but instead the little things that We struggled to get fertilizer application completed are done consistently that will get us where we want and we certainly didn’t use the quantities of fuel we to go. Some of our “little things” this year include usually would. We were fortunate our grain and feed a new energy delivery management system, central divisions both had solid years financially. This year

Patience

STRONG

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2019 MKC ANNUAL REPORT

SUCCESS

Grow

GROWING

Persistence Tenacity

Determination COURSE Confidence

Commitment ACHIEVE

ENDURANCE

PERSEVERANCE


dispatch custom application management system, the purchase of our own facility demolition equipment, the construction of our cover crop seed plant, the creation of A+ Aviation, and many more “little things” that mostly fly below the radar. All of these improvements to our business are made on your behalf. Whether they help drive costs out of your business, improve productivity, or position our company to help you deal with the challenges you face today, each of them is done with your success in mind. We track success through annual surveys and a metric system to determine if we are hitting the mark. Our customer satisfaction score of 84%, customer retention of 96%, and more than 200 new members are clear indicators that we are moving in the right direction. Our regrettable employee turnover of 9% and our overall employee satisfaction score of 96% are metrics we utilize to measure our success year over year. Keeping track of our financials is important, but they do not necessarily paint the entire picture of future health. It is simply not that easy. Many of the companies we compete with daily have selected a different path. When companies choose to not invest in the development of facilities, equipment or innovation of technology, employees will leave and customers will find a new place to do business. The key is to focus on helping our customers be more successful and ultimately improving the customers’ bottom line. We help you plan field by field, providing expertise in marketing, insurance, energy, agronomy and feed. We help develop plans specific to your operation. At MKC, we believe the investments we make today, impact earnings over the long haul and position the cooperative to make a difference in your operation. Like any enterprise that has no retirement date, MKC makes many decisions daily of which the impact of will not be felt until well into the future.

Therefore, our focus has to remain on the horizon and we have to live the “Shared growth. Shared success.” mantra every single day. By doing so, we will continue to establish our culture and be in the best position to serve our member-owners for decades to come. The market will continue to change rapidly; however, we have to remain stubborn on the achievement of our strategic intent to grow. If we continue, we will provide you with a member-owned business that is relevant in the marketplace and valuable to your operation, today and well into the future. Thank you for partnering with us as we work to build future success. Sincerely,

Allan Wegner Chairman Board of Directors

Dave Christiansen President and Chief Executive Officer

SHARED GROWTH. SHARED SUCCESS.

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DAVID MILLS Secretary

JASON GAEDDERT Vice Chairman

AT-LARGE

KEITH BECKER

DISTRICT 3

DISTRICT 1

DISTRICT 2

BOARD OF DIRECTORS

DUANE JOHNSON

ALLAN WEGNER Chairman

SARA HASTY

HAL MAYER

RANDY ELLWOOD

DAVE CHRISTIANSEN President & CEO

ASSOCIATE

AT-LARGE

C.J. BLEW

KENNY CARLTON

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2019 MKC ANNUAL REPORT

BEN SCHRAG

Elected by their peers, these individuals collectively leverage their expertise to provide important direction, and ensure the safety and soundness of the finances of the cooperative. Board members are farmers and ranchers themselves and have a deep understanding of the challenges their fellow member-owners face each day. The Board of Directors consists of 11 members. Three directors represent a district, six directors are at-large, and two directors are appointed. Detailed biographical information on the MKC Board of Directors is available at www.mkcoop.com. As a result of the merger with Plains Equity Exchange and Cooperative Union effective June 1, 2019, two additional directors were added to the MKC Board of Directors from that region. John Borth and J. Daniel Eakes were appointed to serve on the Board.


SHARED GROWTH. SHARED SUCCESS.

7


A YEAR IN REVIEW

CENTRAL DISPATCH LEADS TO EFFICIENCY A new operations and customer efficiency system was adopted in March 2018 called Central Dispatch. This has allowed MKC to be more efficient with farm deliveries and custom application of crop nutrients. The process for the program took nearly two years to complete and required several different departments including IT, operations and sales. “The goal of the program was to find a way to utilize all equipment companywide for the busy times,” said Ryan Sears, truck dispatch manager for MKC. “Historically, we have locations that are very busy at one time and other locations that might not be as busy with orders. We have always done our best to share equipment with other locations, but sometimes we were either too late or it didn’t make sense to send someone far for only a small portion of work. The Central Dispatch system allows us to plan for the work load for certain areas.” Central Dispatch allows MKC an opportunity to increase efficiencies by pulling all location resources together to better serve customers.

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2019 MKC ANNUAL REPORT

MKC JOINS 20 STUDENTS COMMODITAG AS RETAIL AWARDED $1,000 PARTNER SCHOLARSHIP CommoditAg, an online ordering and purchasing option for farmers, comprised of a powerhouse of ag retailers, expanded its footprint to Kansas by the joining of MKC. Farmers in Kansas benefit from the CommoditAg experience which starts with an easy to use online platform where farmers can purchase inputs online with either a credit card or e-check, and have products delivered directly to their farm or pick up at CommoditAg warehouses in Kansas. “We were drawn to CommoditAg’s business model, digitally putting farmers’ convenience and peace of mind first. We have the necessary infrastructure and logistics capabilities, supplier relationships, and agronomic expertise to provide the online experience farmers expect,” said Dave Spears, executive vice president and CMO for MKC. Unlike other e-commerce platforms, CommoditAg does not require a membership fee. On www. CommoditAg.com farmers can browse farm input products and view its transparent pricing.

MKC selected ten high school seniors and ten college students to receive a $1,000 scholarship for the 2018-2019 academic year in the MKC Scholarship Program. Since 2008, a total of $124,000 has been awarded through the Scholarship Program. “The MKC Scholarship Program is one way the cooperative can help support exceptional students who someday soon will enter the workforce to make a difference in the industry and communities where their career paths take them,” said Dave Christiansen, MKC president and CEO. “The number of talented young men and women applying for our scholarship program increases each year making the selection process more difficult. We are honored to help these young students financially.” Students who received the scholarship provided information on their community involvement, extracurricular activities and employment. They also addressed college and career goals along with key aspects of the cooperative system.


$20,000 PLUS DONATED TO COUNTY 4-H PROGRAMS MKC contributed more than $20,000 to Kansas 4-H programs to support leadership development events for the county’s young 4-H members. This marks the 13th consecutive year for donations made to 4-H programs within the MKC trade territory. “This is a great opportunity for us to assist local 4-H organizations that play such a positive role in the lives of so many young people within our trade territory,” says Dave Christiansen, president and CEO, MKC. “It is exciting to think those same youth will be the future leaders of our communities.” Funds totaling more than $145,000 have been donated to 4-H since 2006 with matched contributions from the Land O’ Lakes, Inc. Foundation. In 2018, MKC made donations specifically to the leadership development funds to Butler, Clay, Dickinson, Ellsworth, Harvey, Kingman, Marion, McPherson, Morris, Ottawa, Pottawatomie, Reno, Rice, Riley, Saline, Shawnee, Sumner and Wabaunsee counties.

FIRST-EVER SUMMER AG SYMPOSIUM DEMONSTRATES CUSTOMER FOCUS A large group of producers gathered in Manhattan on August 6, 2018 for the first-ever Summer Ag Symposium hosted by MKC. During this two-day workshop, attendees gained insight into the agricultural industry through speakers, breakout sessions and networking. The symposium featured a group of presenters who spoke on an array of topics relevant to today’s agricultural marketplace. “It is our goal to focus on our customers and the needs of their operation,” said Troy Walker, agronomy sales and precision ag manager. “Through our meetings like the Summer Ag Symposium, we focus on bringing in experts to discuss topics relevant to their operations and grow the relationships we have with them.”

INVESTMENT IN COVER CROP PLANT FOR MEMBER-OWNERS In 2018, MKC invested in building a cover crop plant to benefit memberowners. The three-bin facility with blending capabilities has multiple base ingredients and have the capabilities to create a custom mix to fit individual producers’ needs. “This is a market that has been growing and an area we want to meet the needs of our farmers and help educate them about the value of cover crops,” said Kent Nichols, agronomy sales and seed sales manager. “Our cover crop facility is an opportunity to provide cover crop seed and blends to customers across our entire footprint. We will source in different seed, make the blend and source directly to the grower.”

SHARED GROWTH. SHARED SUCCESS.

9


DRONES IN FLIGHT AT MKC Think that drones only belong in sci-fi movies? Think again. Drones, even autonomous ones, are not fantasy. In fact, they’re currently being developed for everyday use on farms just like yours, with the goal of saving you time and providing other tangible benefits. An innovative trial was conducted to demonstrate how autonomous drone technology can be practically integrated into routine farming operations. MKC partnered with American Robotics, a drone developer specializing in agricultural automation that is supplying the drones, and WinField United to host the trial. “We were very excited to be involved with the drone pilot,” says Troy Walker, precision ag manager and agronomy field sales manager for MKC. “The pilot will help prove the value of drones, particularly if they are unmanned.”

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2019 MKC ANNUAL REPORT

SUMMER INTERNSHIP PROGRAM HIGHLY RECOMMENDED BY PAST INTERNS The internship program is undoubtedly a highlight of the summer at MKC. Each year, MKC selects college students to experience industry tours, complete a summer project and work alongside a mentor during their summer months away from school. The program works to build the professional and technical skills of the interns as they work to fulfill projects and duties. In 2018, 16 students spent their summer as an MKC intern. Interns were employed in ten areas including; agronomy and grain operations, agronomy sales and scouting, energy, feed sales, communications, precision agronomy, information technology, accounting and grain marketing for Team Marketing Alliance. MKC Coordinator of Talent and Industry Partnerships Hilary Worcester says MKC works diligently to provide a high-quality internship experience for students. “The goal is to strengthen the technical and professional abilities of each intern and develop quality employees, as some of them will be the future of MKC,” Worcester said.

DOWNLOAD THE TMA GRAIN MOBILE APP The TMA Mobile App was launched in October and allows patrons to access real-time futures quotes, location elevator bids, grain tickets, wait times, contracts and more. “The innovation and technology around our convient mobile app allows producers to easily access their account information with TMA onthe-go and from wherever they are,” said Matt Friesen, MKC information services manager. Through the app, users can see the following: • Bid sheets • Receiving times • Contracts • Tickets • Futures • Grain Balances The TMA Mobile App can be downloaded through Google Play or the Apple App Store.


Telling our story.

ENERGY DEPARTMENT IMPLEMENTS NEW DISPATCH TECHNOLOGY In February 2019, MKC went live with dispatching and routing using the new Cargas Energy System. The Energy Department continues to work on phase two and three of this project which includes functionality to improve internal efficiencies to improve the customer experience. “The implementation of this project in the energy department improves key process efficiencies and utilizes new tools and technology to improve the customer experience,” said Mandie Lyons, manager of application development for MKC. “There was a lot of training behind the scenes with this project but it continues to show value through more efficient dispatching and routing.”

SIXTH-ANNUAL EMERGING PRODUCER PROGRAM HOSTED MKC hosted the sixth annual Emerging Producers Program on February 22-23, 2019, in Manhattan at the Hilton Garden Inn and Manhattan Conference Center. The Emerging Producers Program is designed to provide young producers, between the ages of 22 and 40, with opportunities to learn from industry professionals, network with other producers and gain knowledge on new technologies to better their operations. More than 100 producers and guests attended. This year attendees heard from four industry professionals covering topics such as agricultural policy, using technology and data in agronomy, increasing nitrogen utilization and the farm economy.

PLAINS EQUITY, MKC TO MERGE The Board of Directors of both Plains Equity Exchange and Cooperative Union and MKC unanimously approved and entered into a Letter of Intent to finalize an Agreement and Plan of Merger, on February 18, 2019. Board Chairman for Plains Equity Roger Holmes said the board recognized the value this merger would bring to member-owners. “After months of studying, we believe unification is the best way to generate stockholder value and benefits, compete in the marketplace and build a stronger foundation for the future,” Holmes said. Allan Wegner, MKC Board chairman, commented the merger, would be a natural fit. “Together, our Boards and management identified benefits that were beneficial for both cooperatives, the members and our employees,” Wegner said. “The synergy we can gain by combining the two organizations will allow our cooperatives to continue to achieve more success.” After a series of informational meetings, the owners of Plains Equity approved the merger with MKC by a super majority of 95% at a special vote meeting on April 4, 2019. SHARED GROWTH. SHARED SUCCESS.

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OUR MISSION

TO create

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navigat

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SAFE and

& in

PROVIDE A

SUSTAINABLE

food supply.

of modern


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STOMERS essfully

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ndustry.

OUR VALUES

The

SUCCESS of our

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WLL BE DETERMINED BY OUR ABILITY TO FOCUS ON:

SAFETY

Courtesy IMAGE Innovation


FINANCIAL OVERVIEW As we look back to our 2019 fiscal year, we are understandably proud of our financial performance and the value brought to our members-owners. We measure the success of our financial performance with three DANNY POSCH primary metrics; net Executive Vice President & earnings, net fixed Chief Financial Officer assets and working capital. We measure the value brought to our member-owners with two primary metrics; customer satisfaction and customer retention. Net earnings measure the level of success or profitability achieved, net fixed assets measure MKC’s commitment to growing and upgrading the infrastructure of the cooperative for future generations and working capital measures the strength and stability of the cooperatives’ balance sheet and overall financial position. Our net earnings for the fiscal year were $9 million, not as strong as our record-breaking net earnings of 2018, but still a strong performance and right at our 2019 financial plan expectations. We were again positioned to take advantage of carry opportunities in the grain market that ensured a strong financial performance of the grain business unit. Our energy and feed business units also had

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2019 MKC ANNUAL REPORT

a solid year and performed above financial plan expectations. Unfortunately, not all news was positive this past fiscal year, our agronomy business unit was adversely impacted by extremely wet weather conditions throughout the last six (6) months of the year, limiting sales and service opportunities with our member-owners. MKC’s net fixed assets of the organization have grown from $25 million to $147 million in the past ten years. We are often reminded that the cooperative has no end date and that we must provide future generations with a company that can serve them as well as it has served previous generations. Our commitment to future generations is demonstrated in the growth of our net fixed assets. At fiscal year-end, our cooperative has a very strong working capital position of nearly $47 million, up $25 million from 2010. A strong working capital position is critical to our organization because it provides a platform for growth and allows the cooperative to execute its’ strategic goals, strengthens relationships with creditors, and allows the cooperative to maintain adequate lines of credit with lenders. It is also worth repeating that some of the greatest value delivered to our member-owners is not measured by a financial plan, ratio or target. MKC is committed to investing in the most talented employees, technology, innovative products, services, and financing. We strongly believe those investments help


the member-owner be more successful on the farm and ranch. A customer satisfaction metric measures how well our products and services meet or exceed our member-owners’ expectations, while a customer retention metric measures the ability of a business to retain customers. We are proud to report our customer satisfaction and customer retention metrics were 96% and 84%, respectively this past year. Both of

New Members

those metrics are considered very strong in any industry. Whether you attended the annual stockholder meeting or not, we are pleased to share our success with our member-owners, as well as our commitment to be a financially sound company that adds value for our member-owners today, and for future generations to follow.

MKC exists for our member-owners. We’re proud to be a cooperative collectively owned by more than 8,500 members.

300

275

276 251

250

220

217

200

189 161

150 114

100 50 0

2012

2013

2014

2015

2016

2017

2018

2019

SHARED GROWTH. SHARED SUCCESS.

15


Consolidated Balance Sheets Current Assets

2019

2018

Cash and cash equivalents

$ 250,889

$ 1,551,582

Marketable securities, available for sale

4,067,892

4,171,346

Patrons and customers

8,073,411

8,643,241

Allowance for doubtful accounts

(175,000)

(300,000)

Accounts and notes receivable - trade

Grain shipments

303,767

2,456,834

4,518,760

3,862,014

Commodity margin accounts

18,224,970

12,766,057

Other

11,847,605

11,367,500

Prepaid inventories

20,863,593

22,344,067

Inventories on hand

281,071,260

315,513,716

349,047,147

382,376,357

Equity in other cooperatives

41,023,617

37,883,221

Investments in affiliates

32,359,552

26,811,820

1,916,898

1,786,517

75,300,067

66,481,558

Cost

121,771,959

118,637,560

Accumulated depreciation

(52,417,987)

(48,330,161)

69,353,972

70,307,399

$ 493,701,186

$ 519,165,314

Grain storage receivable

Total Current Assets

Other Assets Other

Total Other Assets

Property, Plant and Equipment Net Property, Plant and Equipment

Total Assets

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2019 MKC ANNUAL REPORT


February 28, 2019 and 2018

Current Liabilities Accounts payable and accrued expenses Customer prepaid sales contracts Revolving bank notes

2019

2018

$ 62,295,888

$ 59,851,512

12,253,626

11,765,496

214,976,644

246,574,483

Patron demand certificates

4,371,932

4,703,516

Current maturities of long-term debt

6,772,985

5,167,475

Patronage dividends payable

1,383,209

3,718,766

234,986

613,433

302,289,270

332,394,681

Income taxes payable

Total Current Liabilities

Long-term Liabilities, excluding current maturities Non-revolving bank notes

36,571,545

40,111,640

Patron certificates of indebtedness

5,771,194

6,775,662

Capital lease obligations

3,700,271

2,147,177

Deferred income taxes

-

68,183

2,563,612

2,516,013

48,606,622

51,618,675

11,036,850

11,989,850

4,249,900

2,726,800

Allocated Patronage

31,410,644

31,671,012

Contributed capital

9,380,639

9,385,612

Retained earnings

63,609,249

57,980,085

Non-controlling interests

23,124,248

21,271,928

(6,236)

126,671

Total Members’ Equity

142,805,294

135,151,958

Total Liabilities and Members’ Equity

$ 493,701,186

$ 519,165,314

Other

Total Long-term Liabilities

Member’s Equity Common stock Participating stock

Accumulated other comprehensive income (loss)

Financial Statement Presentation | The statements presented within do not contain all necessary disclosures to be considered in conformity with accounting principles generally accepted in the United States of America. A report containing the required disclosures is on file at the general office. SHARED GROWTH. SHARED SUCCESS.

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Consolidated Statements of Operations Sales

2019

2018

$ 364,225,569

$ 296,695,745

Farm supply

121,322,804

112,253,981

Total Sales

485,548,373

408,949,726

Grain

306,496,523

234,322,178

Farm supply

107,520,005

96,990,102

414,016,528

331,312,280

71,531,845

77,637,446

Grain storage and handling services

9,202,263

9,126,506

Limited liability companies

6,121,466

6,273,572

Agronomy services

7,121,697

8,347,592

Interest income

283,503

270,063

Gain on disposal of property, plant and equipment

851,569

768,999

2,488,382

2,321,834

26,068,880

27,108,566

97,600,725

104,746,012

Personnel costs

27,529,806

27,046,166

Fixed expenses

20,662,723

17,122,131

Other operating expenses

24,083,499

22,930,610

Total Operating Expenses

72,276,028

67,098,907

Earnings from Local Operations

25,324,697

37,647,105

Grain

Cost of Sales Total Cost of Sales Gross Margins of Sales

Other Operating Income

Miscellaneous

Total Other Operating Income Gross Income from Local Operations

Operating Expenses

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2019 MKC ANNUAL REPORT


For Years Ended February 28, 2019 and 2018

Other Earnings

2019

2018

Patronage dividends

6,410,912

4,819,362

224,952

249,854

Total Other Earnings

6,635,864

5,069,216

Net Earnings Before Income Taxes

31,960,561

42,716,321

Investment income

Provision for Income Taxes Current income taxes

(45,039)

(285,214)

Deferred income taxes

169,449

1,298,863

124,410

1,013,649

Net Earnings Before Non-Controlling Interests

32,084,971

43,729,970

Non-Controlling Interests

(22,917,348)

(25,709,323)

9,167,623

18,020,647

(108,157)

20,161

Unrealized gain on fair value of interest rate swaps

(24,750)

171,555

Total Other Comprehensive Income (Loss)

(132,907)

191,716

$ 9,034,716

$ 18,212,363

Total Provision for Income Taxes

Net Earnings Attributable to Parent Before Other Comprehensive Income

Other Comprehensive Income Unrealized holding gain of marketable securities

Total Comprehensive Income

Distribution of Comprehensive Income Patronage dividends

$ 3,383,209

$ 7,718,766

Retained earnings

5,784,414

10,301,881

Other comprehensive income

(132,907)

191,716

$ 9,034,716

$ 18,212,363

Total

SHARED GROWTH. SHARED SUCCESS.

19


Financial Performance Historical total assets of the company are at $493,701,186. Total assets dropped this past year due to a drop in the company owned grain position (inventory).

Total Assets $600,000,000

519,165,314 493,701,186

$500,000,000 434,745,237

$400,000,000 $300,000,000 $200,000,000

346,645,094

347,219,951

2015

2016

301,951,776

209,411,086

227,504,568

206,170,887

155,832,307

$100,000,000 $0

2010

2011

2012

2013

2014

2017

2018

2019

Net earnings for FY19 were $9,034,716. Net earnings are important to the organization because it allows the company to attract talented employees, redeem past patronage, retire debt and reinvest in infrastructure.

Net Earnings $20,000,000

18,212,363

$18,000,000 $16,000,000 14,073,776

$14,000,000

13,342,854

$12,000,000 $10,000,000 $8,000,000

8,219,209

9,111,101

8,871,405

9,800,584 9,034,716 7,944,596 5,849,978

$6,000,000 $4,000,000 $2,000,000 $0

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2010

2019 MKC ANNUAL REPORT

2011

2012

2013

2014

2015

2016

2017

2018

2019


Financial Performance and Community Investment MKC’s working capital position is at $46,757,877. Working capital dropped slightly this past year but is expected to have a significant increase in 2020. Working capital is a good indicator of a company’s ability to meet upcoming debt obligation.

Working Capital

49,981,676

$50,000,000

46,757,877

$40,000,000 35,102,439

35,017,726

2015

2016

35,876,161

28,628,956

$30,000,000

26,749,878 22,414,581

25,430,215

23,193,813

$20,000,000 $10,000,000 $0

2010

2011

2012

Community Investment

2013

2014

2017

2018

2019

MKC provides benefits to more than 90 communities in the form of personnel costs, local taxes and other expenses. These payments have a significant impact on the communities and help support the businesses and services we utilize.

$50,000,000 40,506,382

$40,000,000

41,926,369

37,635,917 35,335,447 32,862,108

$30,000,000 25,279,674

24,787,234

2012

2013

26,305,850

23,131,627 21,222,587

$20,000,000

$10,000,000

$0

2010

2011

2014

2015

2016

2017

2018

2019

SHARED GROWTH. SHARED SUCCESS.

21


Patronage Allocation and Cash Distribution to Members 2019 Patronage Allocation

Rate

Amount

Grain

9.00 cents/bushel

$ 2,570,919

Agronomy - Seed - Crop Protection

0.84% or $3.25/ton on fertilizer

Petroleum - Lubricants

0.44%

91,325

Feed - Merchandise

2.43%

242,456

478,509

Total Patronage Allocation

$ 3,383,209

Qualified Patronage - 100% payable in cash

$ 1,383,209

Non-qualified Patronage

2,000,000

Total Patronage Allocation

$ 3,383,209

Cash distributions to members totaled $3,136,969 for the current fiscal year. Cash distributions include equity redemptions as well as the cash portion of the current year patronage allocation.

Cash Distribution to Members $6,000,000

5,257,003

$5,000,000

4,688,995 4,067,812

$4,000,000

3,618,527 3,043,155

$3,000,000

3,503,264 3,136,969

3,077,843

2,353,469

$2,000,000

1,800,648

$1,000,000 $0

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2010

2019 MKC ANNUAL REPORT

2011

2012

2013

2014

2015

2016

2017

2018

2019


Growth in Fixed Assets Local net fixed assets reflect the ending balances of investments in property, plant and equipment of the company.

Growth in Local Net Fixed Assets $80,000,000

70,189,348

$70,000,000

72,103,212

70,307,399

69,353,972

2018

2019

65,145,213

$60,000,000 $50,000,000 4,1111,757

$40,000,000 30,739,856

$30000,000 $20,000,000

3,254,1117

25,306,856 18,397,606

$10,000,000 $0

2010

2011

2012

2013

2014

Growth in Overall Net Fixed Assets

2015

2016

2017

Net overall fixed assets reflect the ending balances of investments in property, plant and equipment of MKC and its affiliates – Producer Ag, A+ Aviation Services and Countryside Feed.

$150,000,000

142,643,663

147,409,272

2018

2019

130,216,270

$120,000,000 104334,618 88,775,996

$90,000,000 $60,000,000 $30,000,000 $0

52,419,383

31,745,818

37,015,160

38,945,105

2012

2013

25,265,099

2010

2011

2014

2015

2016

2017

SHARED GROWTH. SHARED SUCCESS.

23


Profile for Mid Kansas Cooperative Association (MKC)

MKC 2019 Annual Report  

MKC 2019 Annual Report  

Profile for mkcoop

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