As I write this update in the last week of April, we’re at the front edge of planting season and eager to get all equipment rolling on a consistent basis. A wet, windy start to spring has limited fieldwork windows in some areas and created uncertainty about when conditions will finally cooperate. At the same time, recent geopolitical issues continue to add volatility to energy and input markets and contribute to financial stress. Layered on top of these pressures, commodity prices remain stubbornly low, making timely execution and disciplined planning more important than ever. Once the weather breaks, the work that typically spreads across several weeks will be compressed into a much shorter timeframe, and our agronomy team is ready to help coordinate products, logistics, and application services so every acre is covered and yield potential is protected. During this busy stretch, please continue to put safety first—watch for equipment entering and leaving fields, expect wide loads on the road, and never assume 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, or topping off your gas tank and 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 2025 results. Qualified customers could receive up to 3.6% of their 2025 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 continue 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 10. 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.
