January 26, 2021

Three Principles Guide MaxYield’s Board

By Howard Haas, MaxYield Cooperative Board Chairman

If profit is a measure of success, MaxYield Cooperative is succeeding. In fiscal year 2020, we achieved the second-best total revenue in company history.

MaxYield’s local savings from operations for the 2019-2020 fiscal year (which ended July 31) totaled $1,512,243. Pre-tax total savings reached $8.6 million. A lot of those savings have come from AGP, CoBank and Land O’Lakes.

Your cooperative remains in solid financial shape, in part because we live within our means. MaxYield’s directors and leaders take a balanced approach to three key areas of financial management, including;

1.) investing in property, plant and equipment, 2.) timely retirement of bank debt and 3.) retiring some MaxYield equity each year. We achieved this balanced approach again in fiscal year 2020.

As a farmer, the financial security of the company is the priority I’m most concerned about. MaxYield’s financial strength means I don’t have to worry about pre-paying for fertilizer or using deferred contracts.

As a director, however, making decisions to fit this balanced approach isn’t always easy. There aren’t unlimited funds or time each year to accomplish everything we’d like. It’s the same on a farm. Have you ever installed a staircase on your grain bins? I want to have steps installed on my bins, but it’s hard to find crews who have the time to do this and it can be a costly upgrade.

Making sure the right resources are in place when you need them, both on the farm and at MaxYield, requires a lot of strategic decision-making. As we try to meet needs across the company, we use a framework to help guide the board’s decision-making process.

Here are three principles the MaxYield board uses to help make our decision-making process easier and more effective:

  1. CONSULT WITH PEOPLE YOU TRUST

The MaxYield board values input from the co-op’s leaders as we decide where to allocate funds. We also welcome insights from other trusted partners in the industry as we try to do what’s right for the company and MaxYield’s members and clients.

  1. BE WILLING TO LOOK AT THINGS IN A DIFFERENT WAY

If MaxYield is looking into upgrading its grain facilities, for example, efficiency is sometimes the biggest consideration. In other cases, safety is a key driver.

We also understand that our members may have different needs worth considering. While some clients want efficient service and facilities above all else, other clients view equity retirement as a top priority. I’m pleased that MaxYield continues to pay off estates. We’ve also opened another discounted equity offering, plus we’re passing along Section 199A tax benefits to you.

  1. GET INVOLVED

If your priorities are different from mine or my fellow MaxYield directors, you need to let us know. We want to hear from you. Better yet, get involved. Run for the board. We know there are skilled, knowledgeable people out there who can provide tremendous leadership on MaxYield’s board.

Thanks for your continued support of MaxYield. We appreciate your business and will continue to look for solutions that will help keep your cooperative strong, now and into the future.•

 

Running for the MaxYield Cooperative Board of Directors

Democratic member control isn’t just a cooperative principle; it guides everything we do at MaxYield Cooperative. Our members control this business by deciding how it’s run and who leads it.

MaxYield is guided by a nine-member board of directors. The cooperative utilizes three board districts (east region, central region and west region) so members in each geographic area have fair representation on the board. One director is elected each year from each district.

“The governance process is one of the most important components of your cooperative’s success,” said Howard Hass, MaxYield board chairman. “If you’d like to run for the board in 2021, we encourage you to get involved.”

LEARN MORE

MaxYield welcomes new candidates to run for the board. For more details, contact Chad Meyer, client relations/communications leader at MaxYield, at 515-200-5115, or cmeyer@maxyieldcooperative.com.

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