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Advisor

Re: COOPs Keeping Profits

I have to tell you Jim, I'm so disgusted with my local Co-Op. The CEO who took it over has pulled so many tricks on the members, and on neighboring Co-Ops that he has merged with. His whole philosophy has been to get bigger, concentrate assets..and close all the smaller facilities. Now that's not so bad...but when you take a platform scale from one facility that you're closing, move it to another facility that you intend for the minute to keep open...and then move it to a third before closing the third facility and selling it for pennies on the dollar, it says something about his lack of management skill. He has also had employees from one facility that he was wanting to close filling out time cards from that facility while working at another, so he could make the profit margin on that facility look bad. And don't get me started about how they buy grain..or sell products. I know for a fact that the grain buyers have an expense account to wine and dine larger farmers so they can get them to sell them grain. Buying fertilizer or chemicals from them have become a "Lets make a deal" experience...because if you buy more product from them, you get a cheaper price. And if you do play ball with them...You might get invited to use one of their corporate..oh excuse me, Co-op loages in Cleveland or Columbus...or one of their time shares that the directors get access too. I certainly don't respect any of the directors any more, and especially the CEO...and am thinking about removing all of my business from them completely. I just wish they would treat all their members equally...and quit trying to pull the wool over their eyes.

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Senior Contributor

Re: COOPs Keeping Profits

Farmer owned coops are a horrible business model just like farmer owned ethanol plants are a horrible business model.  Has anyone ever wondered what prices the board of directors pays for inputs compared to everyone else?  When Farmland went bankrupt, our local coop stole 33.3 percent of every memebers equity via an equity writedown.  Over the years, I have found I can price shop inputs and get a lot greater savings buying from someone other than the coop than the pittance of equity earnings I would have gotten buying products from the coop.  I think coops do a very good job looking out for their farmer members as long as that farmer member is on the board of directors. 

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Senior Contributor

Re: COOPs Keeping Profits

This was not the case here.  The coop was the first to pull all bids, and they were the last to come on line giving new bids.  IMO, Co-Bank is one of the biggest problems with coops.  Co-Bank has pushed and pushed for coop mergers here in Nebraska.  They pick and choose which cash strapped coop they will allow to devour other cash strapped coops. 

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Contributor

Re: COOPs Keeping Profits

Ha Pup what coop are you talking about ?

 

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