Partnering with producers, employees and communities to deliver sustainable Ag Business Solutions. We will do this with Integrity and a Commitment to Delivering Value to our Customers in every Relationship, Product, and Service.
We are pleased to report that FCS had a very solid year again in 2022 with all four divisions being profitable. We grew sales to $617,383,752, achieved local savings from operations of $1,035,810 and net savings of $9,174,748. We also saw cash flow grow to $24MM during the year and grew working capital by $3.2MM. The year-over-year improvement in net savings was driven in large part by our strong sales growth in a number of areas within our Agronomy Division where we were able to deliver upon several strategic objectives; the stabilization of feed volumes in our Feed Division; growth in the volume of soybeans handled in the Grain Division and good sales and service revenue growth in our HTBC business. These results were not achieved without experiencing some significant volatility within several of our business units during the year, as extreme commodity market volatility added to the normal challenges we are faced with each year, and we continue to be challenged with supply chain delays and inflation pressures.
During the year we continued to build upon our long-term strategic plans in each division, centered around improving operational efficiency and execution and making better use of our team in a difficult labor environment. We invested over $8MM in capital improvements during the year upgrading facilities, replacing rolling stock and adding new facilities and technology to keep FCS on the leading edge, while at the same time continuing to pay down long-term debt.
We are pleased to again be able to pay an all-cash patronage dividend of $1.7MM for 2022 and pass-through $2.7MM (6.1 cents per bushel) in section 199A deductions to our membership.
We would like to take this opportunity to thank all of our employees for their continued hard work and dedication to our customers, members and to FCS. Our results each year are an accumulation of the performance of everyone on our team and our team is top-notch. We have not forgotten why we are here and what this coop stands for………….to serve our members. We would also like to thank each one of you (our members) for your questions, challenges and the ongoing support of Farmers Coop Society, as we look forward to another successful year.
John McDaniel CEO Craig Hoftyzer FCS BOARD PRESIDENT
Across our area, agriculture and livestock are the economic engines that keep our local communities strong and vibrant. As your coop, we understand our role in the industry and local communities. Together with you, our members, we will continue to give back to our communities to ensure their vibrant future and the future of farming.
The agriculture industry is the backbone of our local economy and has fostered prosperous communities, healthy businesses, and a strong job market for everyone who lives here. Farmers Coop Society is a significant employer across our territory. We employ over 200 full-time team members and 40 part-time and seasonal employees throughout the year. This past year, FCS contributed over $18.5 Million dollars directly back into the local economy. This money goes back to other local businesses, community events, schools, and more.
If you also consider the local businesses we support by purchasing our parts, services, and equipment, locally; FCS contributes more than $25 million annually to our local economies in expenditures alone. Buying locally and supporting local businesses helps our communities, and drives economic development.
Farmers Coop Society also directly invests in our communities by supporting local community events, organizations, and projects. We sponsor and make charitable donations to our schools, fire departments/ EMT services, FFA programs, county fairs, and other community events every year.
This year, FCS is paying out patronage of $1.7 Million to our members. This money not only goes right back to our member-owners but also our neighbors. This money helps build stronger businesses and communities by again staying local. FCS doesn't send our profits outside our communities every year. Like a locally-owned small business, our profits stay here to support you and our local economies.
Cooperatives were started to help its members access new markets, products, and services they could not economically obtain on their own. This mission is something the FCS team works hard at every day. Our members own Farmers Coop Society, but our FCS team runs the day-to-day operations. The strength of Farmers Coop Society is our team and our ability to come together on behalf of our members. Over the past 100 years, the members and the team might have changed, but the mission remains the same.
This past year, we’ve seen a lot of challenges, but our FCS team has been able to pivot, work harder, and access our broad network to be a reliable supplier and ensure product availability. Working alongside our other cooperative partners, like AGP and Land O' Lakes, we have been able to source products and ingredients to ensure we can continue to produce affordable feed and have fertilizer available.
When Farmers Coop Society makes important business decisions, we think about our members' current and future needs. We look at the success or return on investment (ROI) our members will receive back from each decision. In the past several years, Farmers Coop Society has added technology that impacts the day-today operations of our members. We've added 24-hour access to liquid fertilizer, card reader technology at two of our location’s scales, and new financing options which directly benefit our members. When our members succeed, Farmers Coop Society succeeds.
Part of serving you is ensuring we provide the best of the best; sometimes, this means accessing our cooperative network when it’s beneficial to our members. Farmers Coop Society is also a member of other cooperatives, such as AGP, Coop Gas & Oil, Land O'Lakes, CHS, CoBank, Cooperative Credit Company, and Do It Best. These memberships come with several benefits, many of which mirror the benefits our members experience when doing business with FCS. Farmers Coop Society receives patronage, market access, and financing options from these cooperatives. We can then use those benefits to build the business, pass them through to our members, and expand our product line offerings. All of this factored together, increases FCS's impact and competitive edge, benefiting our producers.
At FCS, we strive to go above and beyond the standard. Farmers Coops Society has quality character at its core. We stand firm on our core values of leadership, innovation, integrity, and accountability. These aren't just nice words we say; this is what we believe, and these standards have kept Farmers Coop Society thriving since 1907. Our member-owners have made FCS great throughout the years. Thank you to all the individuals that have made this possible; we look forward to the many years to come!
Farmers Coop Society provides high school seniors the chance to apply for a $1,000 scholarship to help them continue their education. Our long-standing commitment is to give back to our communities and the future of the Agricultural industry. To qualify for a scholarship, the students must have a 3.0 GPA, declare an ag-related major, or have an ag background. FCS has seen the seeds of this opportunity grow over the past several years. We have seen recipients receive their degrees, return to work alongside their families, or find their own path in the ag industry. We look forward to continuing to support the future of ag and the next generation of farmers.
is the daughter of Frank and Laura Regnerus. She graduated from Sioux Center High School and is planning on attending Dordt University and majoring in Agribusiness and Accounting. She was active in FFA (served as both Secretary and Treasurer) and FBLA (served as both Treasurer and Historian). Lauren believes agriculture is an integral part of our lives. She sees her generation stepping into the future of agriculture and plans to help farmers make decisions that will be best benefit their operations as a financial analyst. She is excited about all the opportunities arising within the agriculture industry and is driven to contribute to the future of it.
is the daughter of Brad and Pamela Fedders. She graduated from Unity Christian High School and is planning on attending Dordt University to study Elementary Education. While in High School, Olivia participated in Student Council, Basketball, Football Cheerleading, FFA, and Destiny Youth Ranch volunteer. Her love for farming began young on her family farm. She grew up running equipment, baling for her dad, and raising her own animals. These opportunities taught Olivia to work hard and she is excited to take these life lessons and use them to help others.
is the son of Tim and Kim Renken. He graduated from AlcesterHudson High School and is planning on attending Northeast Community College. Harbor plans on studying Precision Ag. He was involved in a variety of activities during High School: 4-H, FFA, Student Council, Football, and local Church Youth Group. Harbor grew up on a farm and raised calves, hogs, sheep, and grain. He would like to see more small, familyowned farms that raise their own produce and meat to realize not only the cost savings but the nutritional value of whole foods. He is looking forward to getting a job in Ag Sales and aspires to become Sales Manager with a farm equipment company.
is the daughter of Marlyn and Gina Woelber. She graduated from Boyden Hull High School and is planning on attending Morningside College for Elementary Education. She was involved in many organizations and activities in high school: Volleyball, Basketball, Track, Softball, Student Council, FCA, FCCLA, and Pep Club. Ellie was raised on a farm where she was very active by helping her dad loading and sorting hogs as well as helping with harvest and field work. By becoming a teacher, Ellie wants to have a hand in educating others about farm life and why it is so incredibly important.
is the daughter of Eric and Marianne Bleeker. Claire graduated from Western Christian High School and is planning on attending South Dakota State University in the fall where she plans on majoring in Ag Education. Claire participated in a variety of activities in High School: 4-H, FFA, Student Council, Basketball, Soccer, Softball, and Church. While in FFA, Claire served as Chaplain, Vice President, and is now serving as President of the Chapter. She plans to become an Ag Teacher. Her goal is to bring awareness to all types of agriculture and to encourage others to join the industry. She believes we are living at a time when so few people understand how their food and other products are grown and raised so she is excited to educate the youth about these important issues.
is the son of Chad and Beth Dreckman. He graduated from Gehlen Catholic High School and is planning on attending Ellsworth Community College and majoring in Ag Business and Farm Management. Logan was involved in numerous High School activities; Honor Society, Christian Leadership Team, FFA Feed a Farmer, FFA Hunger is a Factor, Gehlen Mission Honduras, Big Brother Program, Knights of Columbus, Then Feed Just One, and 3 years of Basketball, Football and Baseball. Logan has been a part of the family farm since childhood. He plans on learning as much as he can in college and then applying that to his family farm which he hopes to own and operate someday. Logan is going to strive to help preserve the small family farms and hopes to pass down his love of farming to his children someday.
is the son of Dave and Ann Bullerman. He graduated from Adrian High School and is planning on attending South Dakota State University. He plans to major in Precision Ag and major in Ag Science. Isaac was involved in Football, Wrestling, Baseball, Fall Play, National Honor Society, Alaska Mission Trip, Youth Group, Mystery Reader, Safe Routes to School Committee, Spokesperson for City Council, Hospice Tree Lighting, Dirt Track Racing, and Firefighter during his high school years. Isaac works as much as possible on the family farm hauling pigs, driving feed trucks, delivering seed to the planter and delivering chemicals to the sprayer. He aspires to work at a seed dealership so that he can help rural America by ensuring seeds and chemicals are healthy and productive.
is the son of Brian and Jill Van Meeteren. Brady graduated from Sheldon High School and is planning on attending Dordt University in the fall. He plans on studying Agronomy and Ag Business and envisions taking over the family farm someday. Brady participated in a number of activities in High School: FFA, Student Leadership Team, Football, Basketball, National Honor Society, Concert Choir, Jazz Choir, Show Choir, Speech Club, FCA and Golf. Brady has worked on his family farm since high school. He understands that the future of agriculture must continually advance and is excited to be a part of this ever-changing world. Brady feels compelled to join the industry and wants to do his part to create a bright future for agriculture.
OVERALL PERFORMANCE:
9,200,000 NET SAVINGS
2,000,000 CASH PAID TO MEMBERS
2,370,000
SECTION 199A PASS THROUGH
396,013
Acres Custom Applied
880,836
Pounds of Cover Crops Planted
73,567
Acres of Stabilized Nitrogen
43,430
Total Lime Tons Applied
47,901
Total Loads Delivered
189 Loads Delivered Per Day Over 1,000,000 Spaces Managed by Proven Swine Over 280 Facilities Managed by Proven Swine
MEMBERSHIP:
2,714 CLASS A MEMBERS
GRAIN
As farming continues to change and total number of farming operations get reduced, FCS has still been able to see growth in membership.
481 CLASS B MEMBERS – NONFARMING INCOME MEMBERS
105 NEW MEMBERS
149,895 Acres Of Corn Handled In 2021
193,049 Acres Of Beans Handled In 2021
450,000 Miles Driven In A Year
1,137 Appliances Sold
943 Gallons of Paint Mixed
3,227 Hog Service Hours
9,127 Hog Comfort Boards Sold
at FCS means constantly striving to redefine excellence in everything we do. FCS is a progressive cooperative that cultivates new ideas that deliver improvement and growth for both our customers and the organization. We support and embrace new ideas and team members that look for a better way of doing things. Innovation can be investing in new technologies, challenging status quo, and learning from our past mistakes to improve the way we work each and every day.
FCS is committed to our members and is embracing new ideas and ways for our members to access new market opportunities for crop production, feed, and grain. Offering new product lines, services, and connections can deliver ROI and unmatched value to our member-owners. This past year we have been able to access the following new opportunities for our members:
▶ Carbon and Sustainability Market Access
▶ Organic Product Offerings
▶ Feed Product for PURRS Trials
Embracing technology allows us to grow across all of our divisions, streamline collaboration in our day-today business, and communicate effectively back to our member-owners. Technology can help increase the efficiencies of our systems and allow us to continue to redefine excellence.
▶ 24 hour Liquid Fertilizer Access
▶ CompuWeigh & OneWeigh RFID Scale Technology
▶ Feed Bin Monitoring Lasers
▶ Agistix – Supply Chain Visibility Software
▶ Paladin Inventory Management System
Redefining excellence and a commitment to developing new ideas and services adds economic value back to our member-owners. These programs are value added services that were launched this past year:
▶ Innovation Assurance
▶ Secure Financing
▶ NIR Testing for Bean Meal & Feed Quality
As a cooperative, Farmers Coop Society only succeeds when our member-owners succeed. Striving for innovation and challenging the status-quo allows us to continue to find opportunities to deliver value back to our member-owners.
We would like to thank all of our members who came to our 33rd Annual Customer Golf Events! We served dinner to over 1,700 of our customers and were very excited to be hosting the events again this year! We look forward to seeing you next year!
NAMES IN BLUE RECOGNIZE EMPLOYEES WITH 20+ YEARS OF SERVICE AT FARMERS COOP SOCIETY, THANK YOU!
Patrick Flynn
John Graff
Cecil Gylfe
Tyson Martinmaas
Caleb Nibbelink
Jorden Rasmussen
Michael Snedeker
Jolayne Witt
Carl Baas
Steven Browning
Leroy De Jager
Scott DeJong
Scott DeJong
Chris Diekevers
Jesse Evans
Brian Fykstra
Todd Helmers
Bruce Heynen
Brian Honkomp
Leo Kelley III
Jeremiah Leos
Andrew Louwerse
Kyle Miller
William Perry
Jodi Prostrollo
Jacob Reiser
Ryan Reiser
Brady Riemersma
Luis Rodriguez
Kevin Rozenboom
Manuel Ruelas
Randy Schmith
Sherry Schueder
Scott Uhlrich
Cody Van Drie
Douglas Van Roekel
Sheryl Weber
Joseph Wenthe
Steve Wetrich
Collin Wolthuizen
Mitchel Wynja
HOW-TO BUILDING CENTER
Abigail Anderson
Julie Bogenrief
Douglas Broek
Nelvin Brons
Eric Cleveringa
Grant De Groot
Rodney De Jong
Norma Geels
Laura Janssen
Darren Kruid
Linda Mulder
Marv Mulder
Michael Ochsner
Bradley Pearson
Jerry Renes
Joe Ries
Austin Sandbulte
Ron Schmith
Russell Severson
Mark Van Ommeren
Norma Van Vliet
Jeannine Van Voorst
Gary Brown
Darlow Busch
Kevin Busch
Aric Den Herder
Kristen Ebel
Zachary Haire
Mindi Hulshof
Russell Jacobson
Donald Jennings
Larry Moir
Cory Mulder
Calvin Pulfrey
Jacob Rockow
Madison Sargisson
Ryan Schoenfelder
Michael Tiedeman
Willis Vanbuskirk
Roger Wichers
Kasey DeBoer
Ryan Dobbins
Dennis Hayenga
Shaun Jurrens
Shane Kleinwolterink
Robert Sachen
Christopher Slagter
Kane Spencer
Christopher Trei
Sheraea Vandebrake
Steven Winter
Roger Frodermann
Bradley Knock
Doris Remmers
Joseph Smith
Jerry Stessman
David Baker
Dakota Boerhave
James Brower
Jason Elgersma
Jason Evans
John Farrell
James George
John Hoefling
Steven Kooiker
Jessica Kronke
Anthony Lee
Robert Ney
Thomas Olsen
Myles Paplow
Travis Pluim
Beau Roberts
Charlene Rose
Adam Ruschmann
Randal Scholten
Todd Schueder
Grant Schuver
Corey Seivert
Cory Sheeler
Kiefer Te Grootenhuis
Bradley Tebben
Michael Thorne
Benjamin Van Beek
David Van Egdom
Roger Ver Mulm
Greg Vogelaar
Kenneth Wohlfarth
Nicholas Zylstra
Rachel Alexander
Jason Apple
Joah Bakker
Marcus Barron
Ron Barthole
Isaac Buresch
Karlin Bleeker
Colin Bolkema
Calvin Bomgaars
Christopher Bosma
Paul Brentlinger
Wesley Budden
Claudia Casas
Michael Crist
Kenneth Daniels
Mark De Kam
Debra De Weerd
Donald De Weerd
Daniel Deboer
Mike DeBruin
Gary Dolieslager
Warren Drew
Daniel Eddy
Liesl Eisma
Lorene Farquhar
Johnathan Fluit
Adam Ford
Sara Godbersen
Brady Goslinga
Dan Goslinga
Dalton Hatting
Austin Hayenga
William Herrmann
Kyle Heynen
Brandi Hoerner
Logan Huisman
Derek Ikeogu
Mark Jacobsma
Katelyn Jansen
Kevin Jager
Mark Jensen
Kristi Johnson
Melissa Johnson
Jeffrey Kiel
Reba Klein
Drew Knudsen
Jeffrey Koops
Carter Lake
Chad Lake
Rick Lawson
Galen Mars
John McDaniel
Marnee Miedema
Russ Mitchell
Allen Mulder
Sarah Mulder
Wilma Mulder
Chad Nelson
Kelly Neuharth
Kris Norgaard
Zachery Oolman
Martin Peters
William Piercy
Jason Pike
Joshua Plueger
Darrin Recker
Melody Reuvers
Regan Ronning
Brian Rose
Barbara Roskamp
Steven Sandbulte
Jennifer Sawyer
Jackson Schuiteman
Shane Schuller
Christopher Schurdevin
Michael Schwebach
James Shippy
Corinne Spaans
Jeremy Stiltz
Kirk Struik
Jared Terpstra
Randall Tietgen
Thomas Toel
Nicholas Urban
William Van Berkum
Rebecca Van Der Brink
Kimberly Van Drie
Julie Van Evera
James Van Gorp
Melissa Van Roekel
Gary Van Veldhuizen
Mark Vande Griend
Carter Vanden Bos
Douglas Vant Hof
Jeffrey Verdoorn
Case Vogelaar
Timothy Zeutenhorst
Kelly Zinnel
Robert Blankespoor
Michael Carlson
Craig Mulder
Janet Sorum
