Articles > Chairman's Report: FY2020

Chairman's Report: FY2020

Dec 15, 2020

Without a doubt 2020 will be a year we will long remember, and one many of us would like to put behind us. Despite the negative times 2020 has presented, I am happy to be providing you with a positive report, but a report I would rather have given in person. UFC had a tremendous, financial year! Thanks to the hard work of the board, management and employees at all levels, UFC is now back to stable ground. As you review the financial results of 2020, there are a few observations worth sharing.

Most notably, numbers do not lie. Making the strategic decision to refocus strictly on our core businesses (grain, feed, agronomy, energy and equipment) has significantly strengthened the financial health of UFC. You can note this for yourself within the 2020 fiscal year financial audit which will be available later this month. Our strong performance also proves the foundational strengths of our business – our people, processes and disciplined approach to controlling costs and manage risks are a few to name. UFC is operating leaner and more efficiently than ever before, which financially translates well to our members.

Thanks to our strong financial performance in 2020 we will be issuing $1,000,000 in cash patronage. Additionally, we have redeemed over $1,100,000 of equity and issued over $274,000 in preferred stock dividend. In other words, the results of our decisions are allowing us to return well over $2 million back into our members’ pockets within a twelve-month period. Our financial performance also demonstrates how we are strengthening the long- term financial sustainability of the business, one which can be enjoyed and utilized for future generations.

The quote “a rising tide lifts all boats” is the perfect way to illustrate the value in conducting business with your local cooperative. Together, we can create efficiencies that give us access to products, services and assets that would not be available on an individual basis. At the end of the year, surplus profits are returned back to those who use the products and services offered as we have done in 2020. Combined, these results show the true value proposition of a local cooperative; together we are better!

Of course, none of this would be possible without our valued employees who have stepped up to the plate when called upon. They are vital to UFC’s success and to you, our patrons. Take a moment to thank them next time you see them.

Last, Todd Nelson and I are retiring from the board after 16 and 24 years of service respectively. There is no doubt we have seen many changes within UFC and agriculture in general. It has been a rewarding tenure for us. I can speak for both of us when I say we’ve learned a lot about the cooperative system, made some tough decisions, met a lot of good people, and we are proud to have been part of UFC for so many years. Admittedly, I experienced a few sleepless nights, but many positive memories far outweigh those nights. In my 24 years on the UFC board of directors, I cannot think of a time UFC was financially stronger than we are now. UFC is here to stay and stronger than ever! Thank you to everyone for your continued support over the years.

Please feel free to contact your board or management team with questions after reviewing the annual report which will be mailed later this month.

It has been a pleasure serving you, our members, and this great company.

Warm Regards,

Kevin Lauwagie
Chairman of the Board

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