Challenges, Opportunities, and the Road Ahead Reflecting on Two Years
This growing participation underscores the value these tools provide in managing price risk and securing favorable returns.
Nick Jackson, Vice President of Grain
As I mark my second full year at CFS, I want to take a moment to reflect on both the challenges we have faced and the opportunities that lie ahead for our grain division. Last spring’s relentless rain created difficult growing conditions, leading to washed-out crops and struggling replants. As a result, harvest delivered bushels to CFS fell significantly short of the previous year. Corn deliveries were down by 4 million bushels, and soybean deliveries declined by 1 million bushels.
Freight: The Backbone of Our Business Transportation is the foundation of everything we do at CFS. Whether it’s moving grain to market, delivering fertilizer to your fields, or ensuring the necessary ingredients arrive at our feed mills, a reliable and efficient freight network is essential to our success. In this edition, we’re taking a closer look at the logistics efforts that keep our business running. Senior Merchant Kevin Schweer will provide insights into the grain logistics at our Delavan, MN, elevator, focusing on the challenges and opportunities presented by our partnership with the CP railroad. Historically, our success in shipping grain via CP has been limited, but with the recent merger of CP and KCS to form CPKC, the first railway to connect Canada, the U.S., and Mexico seamlessly, we are optimistic about new opportunities. Additionally, our Transportation Manager Darren Ohl will share key performance highlights from our trucking operations. With 30 years of experience in transportation and logistics, Darren has been instrumental in driving efficiencies within our fleet, helping us serve our patron base more effectively. Looking Ahead As we continue navigating an ever-evolving market, the resilience of our team and the trust of our farmer- owners remain our greatest strengths. Freight and logistics will be central to our ability to serve you better, and we are committed to exploring every opportunity to optimize our supply chain. Next, Kevin Schweer will take a deeper dive into our Delavan grain elevator and the evolving rail logistics landscape. With new connections and greater possibilities on the horizon, we look forward to the role CPKC could play in expanding our transportation capabilities.
Despite these setbacks, our origination team remained steadfast in helping farmers manage grain pricing risks. Their commitment to supporting producers has never been stronger, ensuring we navigate market volatility together. Growing Demand for Specialty Pricing Programs One of the most encouraging trends this past year has been the increased participation in our specialty grain pricing programs, such as Market Advantage and Average Price. Last year, farmers enrolled approximately 4.2 million bushels in these programs, an impressive achievement in its own right. However, this year, interest has surged dramatically. As the charts illustrate, enrollments have nearly doubled to 9.2 million bushels, and some programs are still accepting additional bushels.
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