Clearbrook Elevator Association Holds Annual Meeting
Wed, 03/18/2020 - 1:46pm
admin
By:
Bonnie Kirchman
The Clearbrook Elevator Association’s Annual Meeting took place on Friday, March 6, 2020. The association members met at the Clearbrook Community Center for a meal at noon, followed by the business meeting.
President Scott Fawver called the meeting to order at 1:00 p.m. David Larson, Secretary/Treasurer, read the minutes of the 2019 annual meeting which were then approved by the association.
Joel Piekarski, auditor for CarlsonSV of Fergus Falls, presented the financial statements. Sales of $2,388.685 for 2019 were down from sales of $2,465,559 in 2018. Cost of sales for 2019 were held at 80.6% compared to 81.4 % for 2019, resulting in a very comparable gross margin. Weather impacted operating expenses at the elevator, with the longer than usual harvest season requiring more overtime hours. This caused utility expenses and payroll expenses to increase in comparison to prior years. Health insurance costs for 2019 are also up from 2018.
Piekarski also presented five-year historical information to the association. He pointed out that sales for 2019 were the lowest in the five-year period, due in part to the current grain prices. However, the gross margin both in dollars and percentage has been comparable over the long-term. Piekarski also reminded the members that grant money received in 2015 bolstered the income for that year and should be taken into consideration when looking at the variation in income over the past five years.
Manager Les Westrum began his report by thanking those present for the good turnout. He described 2019 as a year to forget, with weather adversely affecting the whole season, from spring planting to the fall harvest. Prices also made the year difficult for farmers. Larger expenses for the elevator in 2019 included $12,000 in repairs to the feed mixer and $6,500 in repairs to the feed truck.
Westrum added that plans for 2020 include cutting some expenses, including a contract with Purina for a feed specialist. To increase safety at the elevator, a new rule requiring two people be present when unloading grain has been implemented. Westrum also stated that the new grain bin came in handy during the harvest season.
Westrum closed by thanking the elevator employees. He thanked the board, especially out-going president Scott Fawver who has served for nine years. Westrum also expressed appreciation to the elevator customers for their continued support and reminded everybody that the elevator has seed ready for the new planting season.
President Scott Fawver continued the meeting with a call for old business. Members asked about the use level of the new grain bin and also inquired about the potential profitability of adding another grain bin. Discussion on this topic underlined the difficulties of predicting grain prices and length of storage times. Members also discussed Interest rates for loans and various sources for loan financing.
Association member Scott Anderson informed the group that both Scott Fawver and Greg Erickson would be stepping down from the board. He nominated Tyler Johnson and Nolan Eck for board positions. Nominations from the floor were called for, and as there were none, a motion was made to unanimously elect Johnson and Eck to the board. The motion carried. Other members of the board who will continue to serve are David Larson, Richard Kroening, and Mark Strandberg. The annual meeting was then adjourned.