As we reflect on fiscal year 2025, I want to begin by recognizing the grit and dedication of everyone connected to this cooperative. From our frontline employees, to our members, to this board—your commitment is what keeps Crystal Valley moving forward.
There’s no question that FY25 was a difficult year. Agriculture faced significant headwinds: weather extremes, market volatility, global uncertainty, rising interest rates, and tightening margins. These pressures were felt across our entire organization and tested our resilience at every level.
Yet even in the face of those challenges, Crystal Valley stayed grounded in its purpose. This cooperative exists to serve its members through both good years and difficult ones, and that commitment never wavered.
Our financial results, while disappointing, do not tell the full story. We reported a net loss of $3.9 million on $357 million in sales. That outcome reflects a point in the cycle—not the long-term direction or strength of this cooperative.
One area where the cooperative system continues to clearly demonstrate its value is in member equity. Timely equity retirement remains a top priority for your board and management team. Our cooperative model is built to reward members who choose to do business with us, and we take that responsibility seriously.
In calendar year 2025, Crystal Valley returned $6.54 million in cash to member-owners through cash patronage, estate payments, and equity retirements. Most recently, we completed the redemption of the remaining 2011 deferred equities—returning those funds to members as a tax-free return of the deferred equity portion of their patronage dividends earned through business with Crystal Valley and FCA.
Given the challenges facing agriculture today, this level of equity retirement and cash return is a meaningful achievement. It reflects the underlying strength of the cooperative, disciplined financial management, and the loyalty and trust of our member-owners. That trust gives the board the flexibility to make decisions that deliver real, tangible value back to you—even in difficult years.
At the same time, we are taking the right steps to prepare Crystal Valley for the future. We made strategic investments in equipment upkeep, planned for environmental requirements, and took actions to strengthen our balance sheet. These decisions were not easy, but they are necessary to ensure long-term stability and continued service to our members.
Most importantly, Crystal Valley remains strong. We are financially sound, operationally disciplined, and focused on supporting agricultural producers through our agronomy, feed, grain, and energy businesses.
To those members whose equity was redeemed this year, thank you for your past support. To those who continue to do business with Crystal Valley today, we sincerely appreciate your continued partnership. Your cooperative remains committed to serving you and delivering value through all phases of the ag cycle.
Thank you for your trust, your support, and your belief in what Crystal Valley stands for.