News > MidIowa News > What We're Doing to Keep Your Cooperative Strong--an Update from Mike Kinley

What We're Doing to Keep Your Cooperative Strong--an Update from Mike Kinley

Nov 06, 2020

Dear Mid-Iowa directors and team members,  
If you talk to financial advisors, they’ll tell you clients’ questions have changed. People used to ask, “Are my investments on track?” Now they simply want to know, “Am I going to be okay?”  
I think we can all relate in 2020. This was a “triple d” year, with the derecho, drought and disruptions of all kinds, including COVID-19. You’re not alone if you’re wondering, “Am I going to be ok?”  
Harvest wasn’t easy in many parts of Mid-Iowa’s trade territory. Downed corn and crushed grain bins complicated everything, but we’re in this together, finding solutions to help you succeed.  
Mid-Iowa continues to have strong profits this year. Local earnings will likely be lower in 2021, due to lower grain volumes from harvest 2020 and reduced grain drying income. To keep your cooperative strong, we will continue to:  
  • Rebuild grain-handling assets damaged or destroyed by the derecho to make Mid-Iowa even more competitive and efficient for the farmers we serve.

     
  • Add value. We’re investing in new opportunities like Shell Rock Soy Processing. We’ve had a positive response to this news. Groundbreaking occurred in October, and crews are getting as much work done as possible before winter.

     
  • Manage financial resources wisely, from insurance proceeds to cover derecho damage to the federal government’s Paycheck Protection Program. 

     
  • Support Mid-Iowa’s leadership team. These knowledgeable, skilled people care about the future of your cooperative and the rural communities we serve. Thank you, also, to Mid-Iowa’s directors, who provide strong leadership for Mid-Iowa.

     
  • Focus on innovation. Mid-Iowa isn’t your grandfather’s cooperative. As we’ve evaluated operations and earnings, we’ve transitioned resources from agronomy and energy to grain and feed. This includes investing in Sinclair Milling LLC and Sinclair Elevator LLC. Like our investment in SRSP, these are steps towards much larger goals. We want to help create economic opportunities for farmers, provide job opportunities for rural Iowans, strengthen Iowa’s role in the global ag trade, and revitalize our rural communities for generations to come.                                 
     
While anyone can look like a smart manager during record profit years, Warren Buffet noted, “Only when the tide goes out do you discover who’s been swimming naked.” Mid-Iowa won’t be caught unprepared. We believe the best way to predict the future is to create it, with your help. Thanks for being part of this journey. 
Sincerely, 
Mike  
 


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