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   I would like to start by thanking everyone for their support on another safe and successful harvest at the Scott Coop. While the outlook for the harvest was a bit bleak at times throughout the growing season, we were pleasantly surprised with how the crop turned out.  We were fortunate to handle over 4.2 million bushels of red wheat and over 200,000 bushels of white wheat this year.  This is below our company average but is a very nice crop considering the unfavorable growing conditions that it had to endure. Everyone was also very pleased by the test weights and proteins that the crop provided for us. While the protein premiums in the market are very minimal compared to the last two years, it gives us a very marketable product that will make moving the grain to make space for what we hope will be a great fall harvest much more manageable.
  This harvest saw the addition of our new elevator facility at Selkirk and we were not disappointed. The new facility has a storage capacity of just over a million bushels and we handled almost 930,000 bushels this harvest.  This was a great opportunity to test out the facility and work through the minor bugs that we found that are typical to any new building project.  Work has already begun to ship the grain out of that facility in preparation for a great corn and milo harvest in that area. We look forward to being able to handle corn and milo more efficiently at that facility.
    During the 2017 board planning session, your board of directors and management team set the lofty goal of building an additional 5 million bushels of permanent storage capacity within 10 years. We are well on the way to that goal with the completion of the new bin in Scott City last year and the completion of the new facility at Selkirk this year.  Your management team and board of directors are continuing to evaluate future building projects to continue to improve the efficiency and profitability of your organization.
  The crop production department is having a great year as well. Through eight months, they have improved the profitability of the department by almost $500,000 over the prior year.  This has been driven primarily by a $200,000 increase in seed sales, a $100,000 increase in chemical sales and a $950,000 increase in fertilizer sales. The agronomy and sales team has done an excellent job getting on the farm and helping our farmers to maximize their yield potential. They all look forward to continuing to work with our members to navigate these challenging times in the ag industry.
    Not to be outdone by the grain and crop production departments, the fuel department is off to a great eight month start as well. While navigating tighter margins and fuel supply issues at the Scott City terminal, they have managed to increase sales volumes by nearly 300,000 gallons over last year and are on track to have the largest sales volumes in company history. To help matters even more, the two stations are a combined $74,000 ahead of last year on their earnings and are both well ahead of our budget projections.
    All of these efforts by the employee team, the board of directors and our members have led to one of the best 8 month starts in company history. Through the eight months ending June 30, 2018, the Scott Coop has local earnings of nearly $2.3 million and total earnings of nearly $2.7 million. We have also been able to build working capital to over $8.5 million after paying out over $330,000 in deferred equity in the month of May to bring us current through 1998.
    The Scott Coop is having a great year and we couldn’t do it without our member owners and our excellent employee group. It is a privilege to work with all of you to continue to improve this great organization.
 
Jason Baker, CEO
 
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