The Hancock-Henderson Quill, Inc.
Fantastic Financials For BRR and Shareholders
Burning Ethanol Improves the Air We Breath
by Dessa Rodeffer, Quill Publisher/Owner
This past fiscal year was "phenomenal" for Big River Resources LLC, in West Burlington, Iowa : the best year yet, in its nine short years of existence. And BRR's Cooperative shareholders were extremely happy to hear they will be receiving $1500 per share in a dividend check some time this week for their investments in the Big River Resources Cooperative.
According to Jim Leiting, General Manager, "sales for 2011 was 1.1 billion dollars. That's a far cry from where we started. Part of that is due to the increased commodity values and the growth in the company. Again, pretty phenomenal numbers."
Leiting said, "When we look at returns to our investors there's always the thought of dividends, but member's equity is also another piece of that puzzle. Membership equity increased from $299 million in 2010 to $362 million in 2011.
Leiting said employment went from 203 to 236 employees with the addition of the new Boyceville, Wisconsin plant. Leiting said it was an excellent team effort and everyone contributed and did a fine job from the members on the board to those who ran the plant.
Leiting said in Capitol and Cash utilization for 2011, the company shared $21m with its members and reduced long term debt for a total $36m, acquired the Boyceville plant for $74m and internal capitol projects for $1m for a total capitol and cash utilization of $132m.
The new plant in Boyceville, Wisconsin is the key to our growth, Leiting said. "It's a 55 million gallon annual production Fagen built ethanol plant, and its located 70 miles east of Minneapolis/St. Paul, with an excellent supply of corn in the area. It was 60% owned by the local farm community and is now 100% owned by BRR. It has a very attractive Canadian market place for the Ethanol.
By acquiring the existing facility, you also acquire the grandfather ability to issue RINs (certificates that allow you to sell ethanol in the U.S. market) with your production which is very important in today's ethanol industry. The plant brings our total ethanol production capacity to 390 million gallons.
Leiting said "2012 is bringing some challenges" as the production capacity of the industry has grown. Their goals are to process 133 m bushels of corn, produce 380m gallons of ethanol, 1.1m tons of DDG, 79 gallons of corn oil with sales of $1.3 million, net income of $61m and retire an additional $30m of long term debt.
Over two hundred shareholders and board members gathered at their 9th annual meeting at the Pzazz Conference Center Monday, and enjoyed a buffet luncheon.
President of the Board Ray Defenbaugh spoke on the current affairs of BRR and introduced the various speakers.
Big River Resources is a cooperative that began with farmers from Illinois and Iowa cooperating in an investment to improve the value on their corn. Their motto is:
"Individuals united in a cooperative effort for a just reward due to diligent labor. Help us keep it that way."
special guest dave vander griend explains the need for ethanol
In his quest for cleaner air, and making healthier communities, Dave Vander Griend of Wichita, KS, explained at Big River Resources annual meeting, the toxic effects of gasoline which are greatly improved burning ethanol.
Vander Griend said, "If our air looks clean, we assume it's healthy. But if you work or live in a major city, sit in stop-and-go traffic, or your children's school or playground is surrounded by roadways, you and your family's health are more at risk than were understood before.
Many Americans living in close proximity to tailpipe emissions are not aware of the very dangerous consequences,
While new regulations and technologies have removed most visible pollution from auto tailpipes, the unintended consequences of regulations beginning in the late 70s introduced potentially more harmful compounds into gasoline. When combusted they created invisible air toxics far more dangerous than they remove.
Numerous scientific studies point to the detrimental effects on the health of our children and the elderly. Therefore a group of concerned citizens has formed the Urban Air Initiative to determine the level and causes of urban air pollution from motor vehicle exhaust and to collaborate with others to find practical solutions.
Invisible air toxics come in many forms. Today's gasoline contains more than 200 different compounds. The blend of these gasoline compounds is based on refinery economics, government regulations and engine requirements.
The most commonly used toxic compounds include: benzene, toluene, and xylene (the BTX group).
Emissions from these compounds can be many times smaller than the width of a human hair.
These ultra-fine particulates (UFPs) persist in the air longer and are much smaller than the current measurements regulated by the government.
As stated in testimony given by EPA Administrator Lisa Jackson in August 2010, "Particle pollution is linked to a wide variety of serious health effects and premature deaths in people with heart and lung disease.
Americans throughout our country are suffering from the effects of pollution in our air, especially children who are more vulnerable to these chemicals."
Practical solutions are readily available
Despite the disturbing and overwhelming evidence that links toxic gasoline compounds to cancer, heart disease, asthma, and many other health problems - we have solutions that exist today to improve public health and our environment.
The Initiative strongly believes that by reducing toxic gasoline compounds, we can benefit from cleaner and more efficient transportation fuels.
The EPA recently established bold standards for vehicles to get 54.5 mpg by 2025.
These standards will challenge the technology capabilities of automakers and will not only require better engines, but also the facilitate the development of cleaner fuel options.
Oil refinery technology continues to advance, and alternative fuels are an ever growing segment of our gasoline supply.
It is imperative to help regulators understand the profound impacts that alternative fuels can have on improving the health effects of all people.
Correcting This Issue Is Only A Penstroke Away
In the Clean Air Act, Congress gave the EPA statutory authority to reduce toxic compounds in motor vehicle exhaust. Regulators have been working to achieve a cleaner environment...but we still have a long way to go.
According to the EPA, air quality has greatly improved in recent years, but vehicles on the road still account for over 75% of air polluting emissions nationwide.
This is unacceptable considering the availability of alternative fuels and the emerging engine/fuel technologies. By working together and spreading the word, we can improve the air we breathe by promoting the use of ethanol.