October 21, 2015

Annual Farmer’s Union meeting records strong audit

By Daniel Arens

Hundreds of Hazen residents gathered at Hazen City Hall for the annual Farmer’s Union Oil Company meeting and dinner on October 22. Jimmy’s Lounge provided the supper for the gathered residents.
The audit for Farmer’s Union over the last fiscal year has been positive. Although gas prices have dropped, the lower cost at the pump means a higher amount of activity at the gas station. Jason McKenney, Cooperative Specialist for North Dakota Farmer’s Union, said that the trade-off is a good thing.
Net sales for Farmer’s Union equaled $12,771,305. The gross margin, or the difference between net revenue and the cost of goods, was slightly under $2 million, with the cost of sales at roughly $10.8 million. Altogether, the company had a net savings of $973,589.
The assets for Farmer’s Union paid for the liabilities five times over, meaning that patronage shares in the company increased to ensure that the company’s debits and credits equaled out. Sales were down, which mirrored a national trend for oil companies, while equities remain stable.
Hazen Farmer’s Union Manager Paul Doll thanked the board members, staff, and employees of the station for their hard work over the years. He called the audit “awesome,” with $208,000 paid out that night alone to patrons.

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