The years keep flying by and we’re past September 30, 2022, which marked the end of our fiscal year. That means the auditors have completed their work and will be presenting it to the BCP Board of Directors at their November 11th meeting. To recap, BCP began the year with an enrollment of 11,964,709 bushels. At the end of the first and second trimesters, some BCP members moved their bushels to the delivery position, resulting in 84,839 bushels leaving, which closed BCP’s year with 11,879,870 bushels enrolled. During the year, BCP continued to purchase corn from CVEC through the corn procurement agreement, which is in effect until September 30, 2023. As part of this agreement, CVEC charges BCP a $0.13 per bushel handling fee for the procurement and delivery of corn, which is included in our corn cost.
In FY2022, BCP paid an average of $6.71 per bushel (which includes the $0.13), while our sale of corn to CVAC averaged $6.62/bushel. This resulted in a $0.09 loss before interest, tax, board and administrative costs, bringing the preliminary loss to $0.11/bushel. It should be noted that BCP’s intention is to operate as close to break-even as possible, while being fiscally responsible. Last year, the company’s equity position moved into the black for the first time in many years. The calling of an additional $0.01 per bushel would provide an appropriate level of equity to operate and obtain bank financing for our corn purchase needs. This would mean a potential funding loss margin call of $0.12 per bushel. However, the margin call decision will be made at the board meeting on November 11 when the audit is presented and reviewed. The year-end income statement and balance sheet are included for your review. As shown, BCP currently has a loss of ($1,272,119) before the margin call is recorded on the books. A letter will be mailed in the last half of November 2022 to each BCP member stating the total amount that is due, with payment to be sent by December 27, 2022.
Looking ahead to FY2023, the Benson Corn Pool will continue to operate under the corn procurement agreement with CVEC to provide grain purchasing services on behalf of BCP members, keeping the purchase fee per bushel at $0.13. This should result in an approximate loss for FY2023 of $0.14 per bushel, plus or minus corn price variability.
BCP’s annual meeting has been set for 3 pm on Tuesday, January 24, 2023 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, David Nagler and Richard Syverson. 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 2023 and I look forward to seeing you at the annual meeting.