MFA Incorporated Annual Report for August 31, 2013
President’s / Chairman’s Letter
On March 14, 2014, MFA Incorporated will have been in business for 100 years. All of us at MFA are proud of this accomplishment. MFA is the oldest regional farm supply and marketing cooperative in the United States. Our success over the years has come from our intense focus on serving the farmers and ranchers who built us.
For the fiscal year ending Aug. 31, 2013, MFA achieved net income of $15.4 million. That success comes from a supportive and informed membership, an engaged corporate board of directors and an employee group that is second to none.
MFA’s accomplishments over the course of 100 years are testament to our positive impact in helping farmers and society. It is important to note, however, that while we enjoy our history, we do not live in the past. As representatives of the company, our obligation is to protect what the organization has achieved and improve upon our current status.
We strive for constant financial improvement, and we are focused on enhancing our image and reputation. This improvement should be for our members and the communities where we conduct business.
MFA’s roadmap for future endeavors starts with people: our members and employees. We are committed to hiring the best employees and providing them with extensive and intensive training. We are committed to providing a work environment where employee morale is high and where employees want to excel. Our members and customers are well-educated and sophisticated. MFA’s employees must be well-trained to serve them.
We also want MFA to be known as a company that is financially successful. We want our customers, our suppliers, our lenders and our competitors to be aware of this goal. Facility improvement, additional equipment and expansion are not possible without profit.
Planning is equally important. MFA has a rolling three-year financial plan by each operating division and each retail operating region. Financial targets on profitability, return on assets and return on sales are incorporated. Working capital, business expansion, acquisitions and capital expenditures are also part of this process.
We have developed business plans that ensure financial targets are achieved regardless of erratic weather or volatile commodity prices. All of this underscores our focus on implementing the traits that are behind every successful business.
At MFA Incorporated, we are committed to never losing sight of why we were created 100 years ago: providing economic benefits to our members at a reasonable return.