AFC's 85th Annual Membership Meeting: Where History Meets Opportunity

BY JESSIE SHOOK

AFC President and Chief Executive Officer Rivers Myres took the stage to deliver his ninth President’s Report at the historic 85th Annual Membership Meeting. Myres began by thanking his wife, Mary Tucker, who was in the audience. He recognized all of the spouses and partners whose support contributes to the success of each person at AFC.

On AFC’s 85th year, Myres took the opportunity to reflect on where the company began and where it is today. “At the time of our founding, AFC had 11 members and $10,340 of equity,” Myres said. “Today, we have 31 members and $390 million in equity. As a whole, AFC does business in 48 states and employs thousands of people.”

Myres highlighted the changes that have taken place within the company and over AFC’s 85-year history. He made the point that even though the world and AFC are more complex, our core values remain the same. “AFC’s leadership thinks about these values every day,” Myres emphasized. “They are the guiding principles for every decision we make.”

Myres was pleased to report that for the 2021 fiscal year, AFC returned $22.5 million to AFC’s membership in patronage and equity retirement. Not only that, but since 2014 AFC has returned over $97 million to the membership in the form of equity retirement, patronage, loyalty rebates and insurance incentives. “AFC’s membership today is healthier than it ever has been,” Myres said.

Photo Credit: Studio Panache

“I appreciate each of our Co-op managers for the hard work that contributed to this success.”

Following his report, Myres presented the 2021 President’s Award to 25 Cooperative General Managers who finished the year with positive local earnings and net margin to sales equal to or greater than 1.5%.

The retirement of James Fudge brought a new face to Management Services as Andrew Dempsey assumed that role as the new Vice President. John Gamble retired as Vice President of AFC Grain Division after 43 years of service, and AFC welcomed Bart Payne as the new Vice President of Grain.

AFC’s Chief Financial Officer, Thomas Hallin, began his report by highlighting the events that made 2021 a transformational year for the company. AFC formed a new farm supply partnership, Faithway Alliance, with Tennessee Farmers Cooperative (TFC); formed a new agronomy joint venture, GreenPoint Ag Holdings (GPAH), with TFC and WinField United; and completed the sale of 50% of AFC’s ownership in Bonnie Plants to Scotts Miracle-Gro. These transactions had a profound impact on AFC and its membership. “Our financial condition is truly remarkable,” Hallin added.

Rivers Myres presented the 2021 President’s Award to 25 Cooperative General Managers. (Photo Credit Studio Panache)

Each division and joint venture confronted challenges, faced changes and obtained victories over the course of the year. Each are looking toward the future to continued success. Faithway Alliance faced growing pains and dealt with logistical and operational challenges during its first year. Despite this, Faithway completed the year with sales of $158 million and net income of $2.6 million. Faithway also announced that Mike Elsea had become the new CEO after Tommy Dailey’s retirement.

AFC’s 25% share of GPAH’s earnings was more than double AFC’s prior year share of earnings from Agri-AFC, in which it held a 50% interest. GPAH’s first year produced sales of $1.3 billion and net income of $58.7 million. GPAH is now the seventh largest retail economy company in the United States.

Bonnie Plants sustained 2020’s historic growth through 2021. Although experiencing a slight dip in sales, Bonnie was able to retain 80% of the new business seen in 2020. Bonnie also broke ground on its new headquarters in Opelika, Alabama. This move will further strengthen Bonnie’s relationship with Auburn University.

AFC Feed, AFC’s joint venture with Purina Animal Nutrition, is working hard to bring all feed manufacturing capabilities online, including the addition of a new warehouse, storage and blending facility on AFC’s Decatur campus. AFC Feed is positioned for growth and strong results in the coming year.

Following the business meeting, AFC’s Board Chairman, Ben Haynes, spoke of the positive working relationships among the Board of Directors and the legacy of servant leadership inherited from those that came before. “They have taught the rest of us the value of camaraderie and friendship, of being thoughtful and deliberate and above all, of being patient.” Chairman Haynes said.

The growth of AFC is attributable to years of service by prior directors and must be sustained with the continued work and diligence of its current and future leaders. “Eighty-five years is a historic milestone,” said Haynes. “There is not much in this world that lasts for 85 years anymore, and it is a privilege to be part of an organization like AFC that has stood the test of time.”

Following in the spirit of service, AFC was honored to present a donation to Big Oak Ranch in the amount of $5.000. With matching donations from GreenPoint Ag, Bonnie Plants, AFC Feed and CoBank, Big Oak Ranch received a total of $25,000 following the annual meeting. Just like AFC’s efforts to serve and safeguard Alabama’s agricultural community, Big Oak Ranch provides a safe haven for at-risk children to provide an opportunity for a future they might not otherwise achieve.

Brad Benson, AFC Vice President & Corporate Controller, presented a $25,000 check to Kyle Cantrell, Big Oak Ranch Director of Operations. (Photo Credit: Studio Panache)