June 25, 2014
I am happy to report a profit of $3,524,000, before paying income taxes of $138,000 in the fiscal-year that ended on April 30, 2014. Also, $1,093,000 was spent on the purchase of plant, property and equipment, to better ensure our service to you in the future.
While good business practices require us to continue to improve our financial base, it is a high priority to continue paying a good patronage dividend return to the membership. For fiscal-year 2014, the Board of Directors has declared a patronage dividend to be allocated to our stockholders totaling $2,700,000, with 80% paid in cash. This $2,700,000 is $200,000 above last year. This is the fourth consecutive year that the cash portion is $2,000,000 or more, averaging $2,304,000. This allocation is as follows:
- Warehouse-stored grain 16.83 cents per bushel average, on member bushels
settled during the fiscal-year
- Farm-stored grain 2.0 cents per bushel
- OTC Machinery 2.49% of net purchases (net of trade-ins)
Also, a total of $409,000 (2.76 cents per bushel) of domestic production activities deduction is being allocated to be used as a tax deduction. The amount of your share of this allocation will be mailed in July along with your dividend check.
In fiscal years 2008-2014, a total of $14.1 million has been paid in cash to our members, with an additional $4.7 million allocated for future payment - a total of $18.8 million.
The exact amount of your grain dividend is dependent on how many bushels you had on grain settlements during the fiscal-year, plus how much you paid in handling and storage on those bushels. Dividends on farm-stored deliveries are paid on bushels settled only, since there is no handling or storage.
Our filed tariff rates for receiving and storage will remain unchanged (10 cents and 2 cents/month). The seldom used load-out rate is 30 cents per bushel.
We will be offering grain pools again for the 2014 crop, so please refer to the enclosed papers for details and for signing up for the pools.
Recently, all active farmers received growers' packets with a crop acerage response form. If you have not yet returned that form, please do so. By completing and returning these forms to us at your earliest convenience, you will help us in providing you with accurate and efficient services. Your quick response will be greatly appreciated. We need the wheat acerage by class to help us maximize our efficient handling of your crop during harvest.
We continue to have the problem of lenders not notifying us when they no longer hold a crop lien. Please ask your lender to let us know when the lien is terminated, so we may issue your grain checks without a lender name on it.
On behalf of the Board of Directors and employees of Ritzville Warehouse Co, Odessa Trading Company, and AgTech Services, I give you my sincere appreciation for your patronage.
We hope you have a prosperous, safe and healthy year.
John Anderson, CEO
Ritzville Warehouse Co.