Farmers Cooperative Association seeks membership approval to merge with MKC

By Kerry Watson, Director of Communications

The board of directors of Farmers Cooperative Association of Manhattan has unanimously approved to take a proposal to their membership to merge with MKC.

Over the past two years, directors for Farmers Cooperative met with five cooperatives to determine which organization could provide the greatest benefits to the co-op and its members.

"We are looking forward to working with MKC," said Hal Mayer, Chairman of Farmers Cooperative Board of Directors. "We share the same core values and MKC's attention to detail in the area of customer service is outstanding. Members from these two cooperatives should greatly benefit from us working together."

Currently, MKC's furthest northeast location is in Abilene and serves customers in Dickinson, Ottawa, Clay and Geary counties. Noting the proximity between the two co-ops' locations and the similar profiles of their producers, CJ Blew, MKC's Board Chairman commented the merger, if approved, would be a natural fit. "This is also an opportunity for members from both organizations to insure the relevance and viability of their ownership in the cooperative system for generations to come."

With four locations in Alta Vista, Manhattan, Onaga and Westmoreland, Farmers Cooperative is a full-service cooperative with annual sales of $50 million. They offer grain, feed, agronomy and energy products and services to 2,000 members in five counties.

MKC and Farmers Cooperative are currently developing the required merger documents to be approved by both boards. A vote by Farmers Cooperative membership will be required to approve the merger and is expected to occur next spring.

Stockholders re-elect incumbents to board of directors

By Kerry Watson, Director of Communications

Nearly 750 members, guests and employees were in attendance at the 48th annual stockholders' meeting in Hutchinson on July 11. Re-elected by the membership to serve a three-year term on the board of directors were Cecil Wiebe, District 1; Jason Gaeddert, District 3; and Randy Ellwood, At Large. Wiebe will be serving his fourth term on the board and Gaeddert and Ellwood will be serving their third terms.

In addition to the elections, members of the board and management team reported on the cooperative's financial and operational performance for the past year. Board Chairman, CJ Blew, spoke of the strategic initiatives the directors and MKC has in place to insure the cooperative's relevance in the ag industry. Blew also spoke of the importance of being different or the first to perform or perfect things.

"It's not that MKC has re-invented the wheel," Blew said. "But I think we have re-invented what a co-op means in terms of value to a producer."

President and CEO, Dave Christiansen, spoke of the cooperative's vision. Christiansen also spoke of the momentum today's progressive producer is building and the strategic initiatives MKC has in place to keep pace with them.

Danny Posch, CFO, reviewed the co-op's financial performance, stating MKC ended the fiscal year with $14 million in overall net earnings. "Another profitable year for your organization," Posch stated.

Guest speaker, Paul Mobley, concluded the evening with a presentation of photographs of the American farmer and stories behind each photo.

Energy programs provide convenience, value and peace of mind

By Cassie Wandersee, MKC Staff Writer
MKC operates one of the top professional energy departments in the state of Kansas and their Certified Energy Specialists (CES) are a crucial aspect of the energy department.

Certified Energy Specialists Chris Chandler, Brian
Huxman and Donne Holtzinger play a critical
role in the success of MKC's energy division.

Certified Energy Specialists are highly trained in petroleum products and petroleum applications in order to provide the best service for customers and producers. Overall the goal of a CES is to provide convenient service and help the producer manage risk. MKC employs three Certified Energy Specialists to best serve customers.

“I think the most valuable skill a CES can have is the understanding that relationships drive this business,” said Chris Chandler. Chandler joined MKC in 2009 as a CES and was recognized in 2010 as a top lubricant salesman by Cenex.

Each CES working for MKC realizes the importance of building a relationship with the customer and understanding the customer’s need. Their purpose is to assist the producer in their farming practice, not simply sell them a product.

Stockholders to vote on proposed by-law changes

MKC’s board of directors will ask for stockholder’s approval to adopt four changes to the Cooperative’s Articles of Incorporation and By-laws at the annual meeting scheduled for Thursday, July 19, at the Bicentennial Center in Salina.

If approved, the proposed changes would allow members the option to vote by means of electronic and mail ballots; provide for the nomination of directors via petition (in addition to the normal nominating committee process) and vote for directors by mail or electronic ballot; allow the coop the option to utilize and/or to pass through to patrons the federal income tax benefits of Section 199; and establish the distribution of net assets (in the unlikely event of liquidation or dissolution) based upon total allocated stock and equity then outstanding.