Another fiscal year is almost wrapped up and we have enjoyed assisting our corn pool members fulfill their delivery commitment to CVAC. The audit is nearing completion and will be presented at the BCP Board of Director’s meeting on November 15th. To recap the year, BCP ended FY2023 with an enrollment of 11,905,260 bushels. To start FY2024, 143,395 bushels were added to the pool and 60,371 bushels left the pool. During the year 59,490 bushels left the pool to join the delivery position, closing BCP’s year with 11,928,794 bushels enrolled. 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 FY2024, BCP paid an average of $4.25 per bushel (which includes the $0.13), while our sale of corn to CVAC averaged $4.12 per bushel. As expected, this results in a ($0.13) loss per bushel before including expenses for interest, taxes, administrative, professional and board fees, bringing the preliminary loss to ($0.14)/bushel. This would mean a potential funding loss margin call of $0.14 per bushel. After reviewing the audit, the margin call decision will be made at the November board meeting. The preliminary year-end income statement and balance sheet are included for your review. As shown, BCP currently has a loss of ($1,658,219) before the margin call is recorded on the books. A letter will be mailed after November 15th, 2024 to each BCP member stating the total amount that is due, with payment to be made by December 27, 2024. 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 $0.14 is recommended and approved, BCP will finish the year with $11,812 of net income.
For the upcoming year, BCP will continue purchasing corn under the corn procurement agreement with CVEC. Expectations for FY2025 are a loss of approximately ($0.14) per bushel, plus or minus variability from corn pricing.
BCP’s annual meeting has been set for Tuesday, January 21, 2025, 3 pm at McKinney’s in Benson, MN. It will follow the CVAC meeting, which begins at 1 pm. BCP has one board seat up for election this year. If you are interested in serving on the BCP board, please see the director 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 2025 and I look forward to seeing you at the annual meeting.
