rienced because of potential quality issues and
then reimbursed in the form of a rebate when the
actual loss is known.
A decision we had to make was whether to
open both gins. In doing so last year with not
more than 52,000 bales, your gin ended up with
a loss of $617,386. On the 51,232 bales we ginned
this would have been a write down of each
producer’s stock of $12.05/bale ginned. Last year,
your board decided to reduce our retained earnings by the $617,386 rather than allocate the loss.
We knew that with the damaged cotton it would
be very inefficient to open both gins and our
banks would not allow us to reduce retained earnings further, so losses would have to be allocated
to members who ginned cotton in the 2016 year.
We felt that by running one gin we could make
a small profit or at least not have a great loss at
year end. With the hit our cotton producers have
suffered this year, we didn’t feel they could stand
more misery. As of October 10, we’ve ginned
24,259 bales and have 30,900 bales to go, translating to about 36 days to finish. Average turn out
has been 40.33 percent and average seed weight
has been 569 pounds per bale ginned.
On a positive note, our deer corn bagging plant
is running pretty much full steam with United
Ag High Caliber Deer Corn being wildly known
as one of the cleanest on the market. Our sales
continue to grow daily and our quality product
is getting a lot of attention. This plant was put in
to add value to our producers’ corn crops and
any profits will go back to our elevator division.
Your management and board continue to look
for opportunities to add value to the crops we
produce. We have ongoing talks about expanding
into producing our own feeds in the future.
Our farm supply stores continue to service
many members and patrons and our continuously expanding new product lines to better serve
our members and patrons.
Those of you who haven’t shopped in our new
Blue Creek Market should stop by and take a
look. It is completely full of vendors with many
unique items for sale.
As always, we appreciate your patronage of
your United Ag Cooperative and continue to
strive to serve our customers better.
Sincerely,
Jimmy Roppolo
HARVEST
retrospective breakfast
NOVEMBER 15
BREAKFAST 6:30 AM • PROGRAM 6:45 AM - 8:00 AM
CARRIE BOWEN, WHARTON COUNTY AG EXTENSION AGENT, WILL
EMCEE AND INTERVIEW PANELS CONCERNING THE UPCOMING FARM
YEAR. PANELS INCLUDE:
WHARTON AND SURROUNDING COUNTY EXTENSION AGENT UPDATES
• AG FINANCE • MARKET OUTLOOK • MARK WELCH, GRAIN MARKETING
TEXAS AGRILIFE EXTENSION ECONOMIST • WATER SUPPLY UPDATE
RSVP BY NOVEMBER 11 TO 979.543.2713 • WILL PODCAST ON KULP 1390AM WEBSITE
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