Fall 2009 • Vol. 16
75 t h
1935 - 2010
Serving You With Honesty, Integrity & Value since 1935
On Solid Ground
Agricultural sales are the base that keeps our company solid. Even though agricultural
sales are a lesser percentage of our total sales than they used to be, it is where we start-
ed back in 1935, and still carry that foundation today. As you may know, Mid-County
has diversiﬁ ed into non-agricultural businesses more and more over the last few years
and has helped us through the ups and downs of business cycles.
Mind you that going through the extreme deﬂ ation we experienced on fertilizers, the
last six months is something the industry hopes to never experience again. Fertilizers
that were bought the fall of 2008 dropped substantially within 6 months, and being at a time when all fertilizer
plants were full, it was a tough pill to swallow for many in the industry.
But I will say that looking forward, it is much easier for our co-op to operate with lower fertilizer prices and fuels in the mid - $2 range than they were in the
$4 range. These changes now place our accounts receivable 35% less than it was a year ago at this time. Our inventories we have to carry have dropped by
40%, leaving a lot less burden on our cash ﬂ ow.
We expect to see demand improve for fertilizers this upcoming year, but feel the energy products will take some time to get back on track. Once again agri-
cultural fuels are usually very stable, it is the commercial demand that we feel will remain stagnant. Demand is down over 22% from a year ago nationwide
for diesel fuels, and we are experiencing some of that locally.
Quality and Safety
Ask any dairy farmer that has their facility inspected and they will tell you that no matter how hard you try, inspectors will always ﬁ nd something, and
believe me, when an inspector shows up at our door, there are lots of areas for them to search.
By and large we operate a very safe industry. You probably have heard of many of the agencies that we are under close scrutiny by, such as (MPCA), (EPA),
(MDA), (MNDOT), (USDOT), (OSHA), along with local environmental services. Regulations continue to grow at an alarming rate. Many times two diﬀ erent
agencies will regulate the same thing. An example would be that the DOT has now shown an interest in Anhydrous tanks, which has always been under
the wing of the Minnesota Department of Ag (MDA).
In order to be compliant with the many agencies, in April we hired a service through our insurance company called Safety Resource Alliance. Even though
many cooperatives like ours have an excellent safety record, it has gotten to the point that one ﬁ ne will far exceed any cost of hiring a company to assist
you in that area.
Propane and Home Heat
If you haven’t contracted propane for the upcoming fall or winter, it’s never too late, with our new ﬂ exible program that allows you to contract any time
year round. Our prices are subject to change daily and there is not a deadline as in past years. Call our oﬃ ce anytime for current quotes.
INSIDE THIS ISSUE
As always I appreciate your comments and suggestions to make your
Liming, lime materials, and handling ...........2
Maximize proﬁ t with the best seed hybrids ..2
Controlling soil acidity ...................................3
Filter your storage tank .................................4
Why should I use synthetic oils? ....................5
Flexible Propane Contracting
Call Mid-County today to save money with propane service!
Mid-County Energy: (952) 466-3720 • (888) 466-3700
(952) 466-3700 • 888-466-3700 • 700 West Lake Street, P.O. Box 177, Cologne
H O N E S T Y
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