Mid-County Newsletter MCnewsletter.spring15

YOU’RE IN y r t n u C o Mid-County Spring Messenger INSIDE: PAGE 2 - 3 PAGE 4 - 5 Energy 2015 Agronomy PAGE 6 Auto Truck & Tire Center Spring 2015 • Vol. 27 www.midcountycoop.com Big and small We have a catch phrase for our Auto Truck and Tire Service that says, “From Big To Small, We Repair It All”. Bill Reimers But that phrase General Manager goes farther than our [phone] service department [email protected] at Mid-County. We can efficiently deliver 200 gallons of heating oil, or deliver a full transport load of fuel. The same goes for our Agronomy department, we can soil sample, fertilize, and scout a 30-acre field just as easily as a 300-acre field. We are able to serve all levels effectively, whereby many companies are focused on either large or small customers. Mid-County’s staff is committed to serving you for all of your needs, big or small! If you ever wonder who that person is on the other end of the telephone line that you are talking to, visit our website at www.midcountycoop. com, and click on staff tab on the top right of our home page. Changing prices Gasoline has risen about $.50 per gallon, and diesel fuel about $.25 per gallon since their lows in mid-January. Propane has not been able to gain strength, and we expect propane prices for the next heating season to be about $.30 lower than last year. I have always been of the opinion that lower energy prices benefit everyone. I am sure those who are drilling in the U.S. oil fields feel differently about that right now, given the large drop in crude values. I would expect within time there will be a balance, whereby prices will rise, for them to be profitable again. Crude oil production continues to rise in spite of a dramatic drop in drilling rig activity. It will take several months for production to drop off after drilling activity subsides. It is common knowledge that the OPEC countries are not happy about our increased drilling activity, and they are leveraging their ability to produce oil at a lower cost than we can. See the accompanying chart that shows the drop in drilling rigs. At Mid-County, lower energy prices increase gallon sales and lowers our capital requirements. It wasn’t too long ago, when a transport load of fuel was over $30,000, now it is just about one-half that amount. Financial strength and capital Speaking of capital, we have some modest projects in the works right now. We are in the process of installing a soybean seed treat- ment system to be ready for spring. We are in the early phases of design for expanding our dry fertilizer storage. We are also taking a strong look at replacing the gasoline dispens- ers, and adding a larger and improved diesel island at the Holiday Convenience store. These projects will take some capital, but we will still work towards maintaining our debt- free status going forward. We have been very blessed with solid earnings, and have been able to build our balance sheet to the strongest it has ever been. Thank you for your support and keeping Mid-County a strong local coop for close to 80 years. As always, I appreciate your comments and suggestions to make your coop better. HONESTY • INTEGRITY • VALUE AGRONOMY 700 Lake Street West, Cologne, MN 55322 [phone] 700 Lake Street West, Cologne, MN 55322 [phone] COLOGNE 710 Lake Street West, Cologne, MN 55322 [phone] Hwy. 212 & Hwy. 284, Cologne, MN 55322 [phone] [phone] • 888-466-3700 • 700 Lake Street West, P.O. Box 177, Cologne