September 03, 2009 12:21 ET

GROWMARK Reports Estimated Year-End Financial Results

BLOOMINGTON, ILLINOIS--(Marketwire - Sept. 3, 2009) - GROWMARK officials last week reported unaudited, estimated results for the fiscal year that ended August 31, 2009. Senior Vice President of Finance Jeff Solberg announced sales of $6.1 billion for the 2008-09 fiscal year; GROWMARK net income is estimated at $75 million.

"The 2009 fiscal year has been challenging for many farmers as they attempted to plant a crop with extremely volatile pricing for fuel, fertilizer, and grain," said Bill Davisson, GROWMARK chief executive officer. "Overall, I believe this has been a successful year on many fronts, and when looked at historically, this is still projected to be the fourth-highest income in our history."

More than $62 million in patronage refunds will be returned to GROWMARK member cooperatives.

Energy Division

The Energy Division posted its gross income of $92 million. Investments continue to be made in division infrastructure with biodiesel blending capabilities at the Menard County, Ill. terminal and at Madison Service Company's Roxana, Ill. bulk plant.

GROWMARK received more than $50 million in patronage from the National Cooperative Refinery Association (NCRA). The cooperative owns nearly 19 percent of the refinery operation located in McPherson, Kan.

Agronomy/Seed Divisions

GROWMARK Seed Division sales will top $250 million, a 30 percent increase over last year. FS corn sales grew 5 percent this year, Davisson said.

A 20 percent sales increase is projected by the Crop Protection Division, with gross income estimated at $34 million. GROWMARK recently reorganized field-level personnel to support crop specialists in creating and delivering whole-farm cropping plans through FS Green Plan Solutions.

Plant food operations resulted in a gross income loss.

Davisson cited a worldwide economic downturn, which created significant demand destruction and oversupply of fertilizer, resulting in a huge drop in fertilizer prices after inventories at GROWMARK were in place for fall application. "Still, if you evaluate plant food results over 24 months instead of 12, it was the best period of internal income in our history."

Grain Division

In addition to grain partnering efforts with local FS member cooperatives in Illinois and Ontario, Canada, the GROWMARK System is adding storage capacity and connecting farmers with more end-use markets through a partnership with Central States Enterprises.

MID-CO Commodities had $1 million in income this year and will return $250,000 in cash patronage.

AgriVisor, LLC, a joint venture between GROWMARK and Illinois Farm Bureau, continues to bring a broad spectrum of products and services which help producers develop and implement risk management strategies tailored to their operations.

Contact Information

    Karen Jones
    309-557-6184 or Cellular Phone: 309-212-9032
    309-557-7065 (FAX)