Nation's Ag Co-ops Set Record for Annual Sales and Income (USDA News Release, September 30, 2014)
WASHINGTON, Sept. 30, 2014 - Agriculture Secretary Tom Vilsack [Sept. 30, 2014] announced that the nation's farmer, rancher and fishery cooperatives set a new sales record in 2013, with total business volume of more than $246 billion. That surpasses the previous record, set in 2012, by $8 billion, a 4 percent gain. U.S. co-ops also enjoyed robust job growth over the previous year.
This third consecutive year of record sales by ag cooperatives reflects increased sales in the overall farm economy in 2013. U.S. crop production and livestock sales both increased 6 percent in 2013, while production input (farm supply) sales increased 2 percent.
"These sales and net income records for ag cooperatives, combined with strong gains in employees for 2013, underscore the strength and productivity of the nation's farmer- and rancher-owned cooperatives. These co-ops play a vital and growing role in the nation's economy," Vilsack said.
Secretary Vilsack made the announcement to mark the start of National Cooperative Month in October. He also signed a Cooperative Month proclamation that salutes the nation's entire cooperative business sector, which includes about 30,000 co-ops. In addition to agriculture, the nation's co-ops play a major role in electricity and telecommunications services, credit and financial services, housing and in many other sectors of the economy.
Ag co-ops also enjoyed record net income (before taxes) of $6.2 billion, besting the previous high of $6.1 billion, set in 2012. Co-op income is either reinvested in the co-op for needed improvements or returned to the member-owners. It then circulates in local communities.
The number of full-time employees working for ag co-ops climbed by almost 7,000 in 2013, to 136,000, up 5 percent from 2012. Counting seasonal employees, ag co-ops employ 191,000 people.
In addition to marketing and processing their members' crops and livestock, co-ops are also major players in the farm supply market. Co-op sales of petroleum, feed, seed and crop protectants were all up in 2013. Fertilizer sales declined, the only major farm supply to see sales drop in 2013.
With grain and oilseed prices generally lower in 2014, it appears unlikely that co-ops will set a fourth consecutive sales record when the results are tallied next year. However, livestock, poultry and dairy producers and their co-ops will benefit from lower feed costs, which should offset at least some of the decline in revenue from grain and oilseed sales.
While 33 ag cooperatives recorded more than $1 billion in sales in 2013, 33 percent (726 co-ops) had less than $5 million in sales.
The value of cooperative assets fell in 2013 by almost $1 billion, with liabilities decreasing by $5.3 billion and owner equity gaining $4.5 billion. Equity capital still remains low but is clearly showing an upward trend, with a 15 percent increase over the previous year.
Patronage income (refunds from other cooperatives due to sales between cooperatives) increased by almost 33 percent, to $1.2 billion, up from $900 million in 2012.
U.S. farm numbers remained about the same in 2013 as in 2012, with USDA counting 2.1 million in both years. There are now 2,186 farmer, rancher and fishery cooperatives, down from 2,236 in 2012. Mergers account for most of the drop, resulting in larger cooperatives.
Producers held 2 million memberships in cooperatives in 2013, down about 7 percent from 2012. The number of cooperative memberships is slightly less than the number of U.S. farms, but this does not mean that every producer is a member of an agricultural cooperative. Previous studies have found that many farmers and ranchers are members of up to three cooperatives, so farm numbers and cooperative memberships are not strictly comparable.
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Pride Ag Resources held their 99th Annual Stockholders Meeting Tuesday May 20th at the Knights of Columbus Hall in Dodge City Kansas. The following videos were shown to the stock holders at this meeting.
As part of last year's Co-op Month celebration, we encouraged our member cooperatives to "Pound Out Hunger" by collecting and donating food to their local food banks. We were so impressed by your response! As reported to us, KCC members collected nearly 5,000 pounds of food.
Did you know that 2014 marks the 70th anniversary of the Kansas Cooperative Council? To help us celebrate, the KCC Board is challenging each cooperative to donate at least 70 pound of shelf-stable food items to a local hunger relief charity in your community. It can be done! Last year several co-ops easily passed that amount by a mile! If each of our 265 members meet the 70 pound goal, over 18,000 pounds of food will be given in the name of co-ops to feed hungry people across Kansas. We can make that happen!
Co-op Month is a time to increase awareness of how cooperatives are a vital part of their communities. During the month of October, set up a donation site at your cooperative or host a food drive and encourage your employees, co-op members and community residents to meet the "70 Years - 70 Pounds" challenge. If you have multiple facility locations, you may want to consider having a challenge amongst your locations and have a donation center at each facility? Together, we can help share the message of cooperatives' concern for their community as we help feed the hungry around us.
Please keep track of the donations raised through your collection activities. We would like to compile those totals at the end of October and recognize the state-wide impact of our efforts. It would be wonderful to have you send us photos of your food drive activities, as well. Please send photos and a short description of your event to Natalie at email@example.com.
Pride Ag Resources is going Green with our Newsletters. In order to go Green you will need to submit your email address to our webmaster. We then will email you a notice the Newsletter has been posted on our website. Here is a copy of our 3rd quarter Newsletter
TUB & MINERAL PRICING PROGRAM
The Pride Ag Resources is offering a Winter Mineral & Tub pricing program. You can book your Tubs and Mineral in ½, 1 ton or3 ton lots. Price savings are as follows:
½ ton -- Save 3% 1 ton -- Save 5% 3 ton or more- - Save 7%
To qualify for this special pricing you must be signed up by Oct 31st 2014 and will be required to take delivery of the tubs or mineral by January 31st 2014.
CONTACT YOUR LOCAL PRIDE AG RESOURCES MANAGER FOR MORE INFORMATION AND SIGN UP TODAY!
A light rain and snow mix along with windy conditions is in store for the eastern Midwest Friday, focusing on the Great Lakes. This combination will cause some disruptions in harvest and possible transportation issues. Dry conditions are in store elsewhere, offering good chances for harvest activity. Very cold conditions in northern and central areas will help drying for crops as well. » More DTN Weather Commentary