Farmers Cooperative stockholders and guests choose from a well-stocked buffet before the annual membership meeting held Monday at the Woods County Fairgrounds in Alva.
LEFT: Farmers Co-op Manager Ronnie Truelock speaks to stockholders during the 101st annual meeting held Monday at the Woods County Fairgrounds. RIGHT: Co-op Board President Randy Schwerdtfeger will continue on the board after being elected to another term Monday night in Alva.
Diseases, spring freezes and hail storms left Oklahoma with a very poor wheat crop in 2018. "The way I've been describing the 2018 wheat crop so far is it's been a struggle from start to finish," said David Marburger, Oklahoma State University Cooperative Extension small grains specialist.
Alva Farmers Cooperative members, gathering Monday evening, saw financial reports reflecting that very low yield. The 101st annual meeting was held in the Merchants Building at the Woods County Fairgrounds in Alva.
Following a delicious buffet-style meal, members and guests listened as Todd Plughoeft, CPA with Lindgurg Vogel Pierce Faris, CPA firm, went over the audit reports. He said grain sales in 2018 were just over $6 million, down considerably from a year ago due to a very small harvest in the area. The cooperative includes both Alva and Buffalo.
"Since you're a member of the marketing alliance, the coop buys your grain from you and sells it to the marketing alliance at cost, and then you participate in the earnings of the marketing alliance," he said.
He reported supply sales such as fertilizer, hardware, fuel, etc. were also down as might be expected. The bottom line was that the local cooperative had a loss of $152,707.
"We started 2018 with the euphoria of the past history, celebrating our 100th year in 2017, but also the success we had in 2017," said Cooperative Manager Ronnie Truelock. "Then a 2018 comes along.
"The wheat harvest of 2018 resulted in the lowest total bushel wheat crop we have ever handled at Farmers Coop in percent to our storage capacity. I can recall several producers last year make the comment that they wished 2018 would hurry up and end."
He likened 2018 to a bad dream you can't wake up from. "It just seemed to carry on and carry on."
Looking back at poor crops in the past, Truelock said, "History tells us that, more than once, we have suffered through hard times and lived to tell about it.
"I've been dreading this financial report for quite some time now. We are a cooperative and an ag business, and weather has always had a say in our successes and our losses. My job tonight is to let you know we do not accept a loss in one year to be a failure."
Truelock compared 2018 to 2017. The 2018 wheat crop was about 500,000 bushels, compared to over two million bushels the previous year. Fertilizer sales and applications were down $74,000, other supplies such as hardware, fuel, chemicals and tires were down $432,000.
The local cooperative took some steps to minimize the loss with a $147,000 reduction in operating expenses and a decrease of $275,000 in personnel costs.
"We've been able to retain a core group of important employees that will allow us hopefully to take advantage of the moisture that we've been able to enjoy the last eight or nine months," said Truelock.
He said a drought is usually followed by years of good yields in crops that lead to good financial years. "We hope and plan that 2019 fits that pattern. I'm optimistic about the first quarter of 2019 so far."
The board term for President Randy Schwerdtfeger was expiring. A nominating committee presented Schwerdtfeger's name for another term, and he was reelected to the board.
Board members at the annual meeting were Schwerdtfeger; Tim Ohm, vice president; Kenneth Waugh, secretary; Jared Bates, director; Daryl Buckhaults, director; and Clinton Nighswonger, associate director.
Several drawings were held for prizes of Chamber Bucks and Farmers Cooperative gift certificates.
A video of the meeting may be seen at AlvaReviewCourier.com.
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