As I assemble this column, we are just about to begin our annual series of district meetings. We are still pulling together financial information to present to our members. Every year, these meetings present us with logistical problems. We have 13 meetings over a four-day period. But that's not a complaint. These meetings are excellent opportunities for us to meet with our individual members on their turf to find out their concerns and opinions. The exchange is two-way. MFA's officers and corporate board members also have a chance to share their outlooks and estimations on the coming season as well as the financial numbers from this past fall.

Since at this writing these meetings haven't yet taken place, I won't go out on a limb and forecast the outcome of a couple of items being voted on or the results of the elections. Also I don't have the final numbers on MFA's first half of the fiscal year. In general, MFA has had a good start to the fiscal year. But we're in agriculture, and as every farmer and rancher knows, profitability depends on favorable weather and adequate windows of opportunity in all four seasons.

River controversy
From our perspective here at MFA, there is one specific item that is a cause for concern--the ongoing controversy over water levels in the Missouri River. The barging season opens April 1. Not many barges are available. The majority of barge companies prefer to schedule their barges on the Mississippi River and other non-controversial tributaries. It is increasingly difficult to get barges when and where agriculture needs them on the Missouri. I'm sure everyone by now realizes that this controversy greatly affects agriculture.

Environmental groups have joined with recreation industry supporters from northern states, creating a politically powerful coalition that is attempting to control the water levels in the river. The recreation industry, of course, lists its fiscal impact on the economy and claims to be of greater importance than agriculture. And the environmental groups...well...it's hard to respect, much less believe, anything they say. They're simply engaged in a never-ending battle with modern civilization and thought. They don't seek to be constructive; they seek to be controversial and, thus, newsworthy. Don't doubt for a minute that their main goal is to ban humans and human activity (other than hiking and riding bicycles) from the Missouri River floodplain. Fortunately, Missouri's state officials and our senators and representatives are representing us well. U.S. Senator Kit Bond, specifically, is carrying the ball in this contest. We owe him our gratitude.

Requests for funds
On another subject entirely, seldom does a week go by without someone soliciting funds from MFA Incorporated. The requests come to the corporate headquarters as well as our individual locations. Those requesting money include youth organizations, government at all levels, fairs, events, interest groups, charities and of course those seeking investments in projects. Don't misunderstand. Most of these groups, projects and individuals are very worthy. I'd love to be able to donate to many.

We at MFA are sympathetic with our customers and support their attempts to add value to their individual pieces of agriculture. But we simply do not have the capital to invest in many of the projects and ideas that arise, no matter how worthy. Keep in mind, MFA is a cooperative. Access to capital is the Achilles' heel of cooperatives. Unlike investor-owned firms, cooperatives cannot raise cash through stock offerings. We only have two ways to raise capital: through borrowing and through profitability. In this fiscal environment, we are hesitant to assume additional debt. Still, people know us as a profitable enterprise. We are because we focus on providing quality products and services. But as a cooperative, the majority of our profit goes back to our member/owners and is used for capital expenditures that enhance service and performance.

In addition, each year we provide direct funding for educational scholarships, programs and projects with annual funding of approximately $500,000. At MFA, we feel this is the best way to use our funds without being partial to certain groups or projects. Providing funding for different enterprises is always a tough call. What we constantly must keep in mind is that we are in the service industry. To fulfill our mission statement we must invest our monies in facilities and rolling stock as well as interregional cooperatives that give us access to supply. We require more than $12 million annually to maintain and improve our facilities and rolling stock before one dime goes into the profit column. To replace one piece of fertilizer application equipment at each of our facilities requires expenditures in excess of $20 million.

With today's increased interest in "new-generation" cooperatives and with MFA's high visibility, we are immediately thought of when people seek investments in "start-up" enterprises. We simply do not have sufficient monies to help. But it is important to note that we do not oppose these new enterprises. We hope these projects will provide economic benefits to those involved. Still, we are constantly reviewing alternatives and options that would allow us to play a positive and beneficial role in these new ventures.