As I write this update the last week of April, the wet and windy start to spring has many of our producer members and staff a little anxious to get in the field and start planting. Our agronomy team fully understands that once the weather conditions improve, the seasonal demands experienced earlier in the spring are now compressed into a shorter timeframe. Effective communication and planning can help ensure all acres are covered and yield potential is maximized. During this busy season, it’s crucial to exercise extra caution, as farm machinery will be frequently entering and exiting fields, and wide loads may be encountered on the roads. Whether you’re driving to work or moving to the next field in your tractor, always stay aware of your surroundings and never assume that others can see you. Take it slow and stay safe.
The first week of May we will begin our annual patronage and equity distributions back to our customers. As a local cooperative, our customers are our owners. Instead of profits going to individual shareholders or outside investors, our shareholders are our friends and neighbors right here where we all live and work. Whether you are feeding your herd, growing crops, heating your home, maintaining a fleet, topping off your gas tank or shopping at our hardware stores, all share in the benefits of the products and services the cooperative provides and the profit it generates. This year we will be returning $6 million in cash to our customers based on our fiscal 2024 results. Qualified customers could receive up to 3.6% of their 2024 purchases back in cash.
To give a little perspective, a 3.6% cash return to members means that they will be getting about 13 cents per gallon back on gasoline and diesel, 6 cents per gallon on propane, and about $20 per ton on feed or fertilizer. In general, eligible members can receive up to $3.60 for each $100 of purchases.
Soon our propane division will begin compiling contracting options for the next heating season. Auto-renew contracts have already begun, and in June we will begin mailing out contracts to over 12,000 of our customers that purchased at least an average of 400 gallons or more in each of the last two heating seasons. While some of our business units may not be easily accessible to all members, propane is the one division that can reach everyone reading this update. If you use propane to heat your home, business or power your vehicle and are not currently purchasing it through Premier, please consider making the change. We would love the opportunity to earn your business and show you why we consistently rank as one of the top propane companies in the country. As an added benefit, since you are already a member of Premier, a cooperative that you own, all purchases count towards your share of the annual patronage distribution I mentioned above.
I’d like to wish all moms out there a Happy Mother’s Day on May 11. With Memorial Day later this month, I hope everyone has a chance to honor the brave men and women who have sacrificed their lives to protect all of us and this great country. Have a wonderful May.
