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A family farm operation today must accumulate many more acres to sustain itself. Farmers, who are good managers are also doing what they can to reduce over all costs. There is little regard for how it was done in the past. The economic environment is different and the means of survival must be different. Innovation is an important tool for managing in today's market place. 

Agribusiness is also facing increasing costs. The rising cost of medical insurance seems to be relentless. The funding of retirement programs for those businesses (like West Central) that have Defined Benefit programs is going to be a huge challenge over the next few years. Property and liability insurance; taxes; equipment costs; government regulation and compliance costs; and many other costs must be absorbed by the business. At the same time, just like the farmer, agribusiness must adjust to ever decreasing per unit margins.

It is a very good time for agriculture in the United States - but we are going to have to do some things different. We must capture those economics of scale that may exist in every business sector. We must reduce costs by not engaging in activities that no longer provide a return to capital. And we must be a low cost provider of products and services while at the same time improving the quality of both products and services.

West Central is committed to maintaining its excellent financial strength while, at the same time, positioning itself to better serve agriculture in the 21st Century.