A message from the CEO
Annual meeting recap including changes
suspect is not widely known beyond
the GM level. It is no wonder that
some coops view Servi-Tech as a
ervi-Tech is striving to improve competitor, rather than a partner in
their businesses.
the quality and substance of
Servi-Tech does not sell seed,
interactions with our owner-
fertilizer or chemicals, nor do we
cooperatives – changing the timing
custom-apply these products. Servi-
and venue for this month’s Annual
meeting is one example. Re-engaging Tech doesn’t buy grain or sell feed,
hardware or related products.
with our owners regarding current
Servi-Tech does consult and make
and future relationships is a second,
recommendations directly to our
and the subject of this brief article.
customers – those who sign a
While nearly 65 percent of last
contract for our services. For the
year’s crop service business and 44
most part, those customers are
percent of last year’s lab business at
growers – our customers and your
Servi-Tech was member-related, the
portion that is directly attributable to patrons. We contract directly with
owner-coops is just under 22 percent owner-coops as well; from soil
sampling and fertility planning, to in-
and 7 percent respectively. As I look
season scouting on acres contracted
at our current-year revenues, our
by the coop or distributing
owners’ stake of business directly
technology around soil moisture or
with Servi-Tech remains under-
aerial imagery. There is no shortage
represented in both categories.
of ideas to consider.
As the numbers above attest,
The consolidation pressures facing
most patronage received by owner-
our owner-coops are significant,
coops is related to contract business
creating new roles for you and for
done by their farmer-patrons – the
Servi-Tech. I have been challenged
grower signs the contract, commits
by the Servi-Tech Board to sit down
to the service and pays the bill. Our
with those coop-owners who are
coop-owners have a very indirect
willing to lay their cards on the table
relationship with Servi-Tech, one I
S
Servi-Tech was formed in 1975 by
three farmer-owned cooperatives that
saw a need to provide technical services
for agricultural producers in southwest
Kansas. Servi-Tech is organized as a
federated cooperative owned by 60
farmer-cooperatives across six states.
In the 42 years since our founding, we
have expanded into Colorado, Nebraska,
Iowa, Oklahoma, Missouri, Minnesota,
Texas and South Dakota.
Servi-Tech began with 100,000 acres
under contract in 1976. Today, we
provide consulting on almost 1 million
acres on behalf of both individual
growers and cooperatives of all sizes.
Since our founding, Servi-Tech has
been dedicated to providing growers
and cooperatives with the solutions
they need to make more productive
decisions in the field. Combined
with new technology developed
through Servi-Tech Expanded
Page 2
Greg Ruehle
and determine a beneficial path
forward. If you have that interest,
let’s schedule a time to bring our
key staff together and develop a
progressive offering for the benefit
of our common customers.
If you are not interested in
any further dialogue, I would
appreciate knowing that, as
well. Servi-Tech can work with
growers as preferred stockholders
delivering patronage directly to
them for their business with
Servi-Tech.
In either case, there is greater
clarity for the grower, for the coop
and for Servi-Tech. I look forward
to these discussions beginning
with the annual conference and
continuing through the spring!
Premium Services, LLC (STEPS),
our precision ag experts, and the
world-class laboratories in Dodge
City, Kansas, Hastings, Nebraska,
and Amarillo, Texas, Servi-Tech
provides the ultimate in agronomic
knowledge for cooperatives and
growers alike.
To learn more about how Servi-
Tech can help you serve your
growers, visit us online at servitech.
com for the full list of services, or
call us at 1-800-557-7509.
The Cover Crop