Once again, we have wrapped up a successful year of fulfilling shareholder delivery commitments for our BCP members. September 30, 2023 marked the end of our fiscal year and the auditors are nearing completion, with the audit to be presented at the BCP Board of Director’s meeting on November 17th. To recap, BCP ended FY2022 with an enrollment of 11,879,870 bushels. To start FY2023, 398,958 bushels were added to the pool and 295,919 bushels left the pool. At the end of the first trimester, 77,649 bushels left the pool to join the delivery position, closing BCP’s year with 11,905,260 bushels enrolled. During the year, BCP continued to purchase corn from CVEC through the corn procurement agreement, which includes a $0.13 per bushel handling fee for the procurement and delivery of corn, which is included in corn purchase expense.
In FY2023, BCP paid an average of $6.21 per bushel (which includes the $0.13), while our sale of corn to CVAC averaged $6.08/bushel. As expected, this resulted in a ($0.13) loss per bushel before including expenses for interest, board, administrative, and professional fees, bringing the preliminary loss to ($0.145)/bushel. This would mean a potential funding loss margin call of $0.145 per bushel. However, the margin call decision will be made at the board meeting on November 17 when the audit is presented and reviewed. The preliminary year-end income statement and balance sheet are included for your review. As shown, BCP currently has a loss of ($1,700,165) before the margin call is recorded on the books. A letter will be mailed after November 17th, 2023 to each BCP member stating the total amount that is due, with payment to be made by December 27, 2023. It should be noted that BCP’s intention is to operate as close to break-even as possible, while being fiscally responsible. Assuming a margin call of $0.145 is recommended and approved, BCP will finish the year with $4,542 of net income. It doesn’t get any closer than that.
Looking ahead to FY2024, the Benson Corn Pool has extended the corn procurement agreement with CVEC to provide grain purchasing services for an additional three years, keeping the handling fee at $0.13 per bushel. This should result in an approximate loss for FY2024 of ($0.13) to ($0.15) per bushel, depending on corn price variability.
BCP’s annual meeting has been set for 3 pm on Tuesday, January 23, 2024 at McKinney’s in Benson, MN. It will follow the CVAC meeting, which begins at 1 pm. BCP has two board seats up for re-election this year, Roger Longhenry and Doug Schliep. If you are interested in serving on the BCP board, please see the nomination procedures included in this newsletter or contact the office with any questions. You can expect to receive the annual meeting packet in early January 2024 and I look forward to seeing you at the annual meeting.
