Plant Materials Center Update
Here are 5 things that you should know about the PMC for April 6, 2023:
Actually, this is not an April Fool’s Day joke for once: the PMC is currently caught up on field activities, sales, and shipping!! Even Accounts Receivable are largely up to date. Transplanting ended at an all-time early date which allowed for the first pass at weeding to be completed way ahead of schedule. The spray program is on track which has not happened in several years. Irrigation has been laid out and ran, not that it is needed in this weather but we are ready for when it is needed. Hopefully, that continues through the remaining 90% of the growing season.
As of 4/05/23 sales stood at $1,689,301. That is 119% of the annual sales revenue budget of $1,114,300. Sales to date are $182,226 ahead of where they were on the same date last year when they were $1,507,075. It has been a great sales season made even better by how well everything went. There were a few hiccups along the way which is to be expected with a mid-sized bare root seedling nursery, but overall things went pretty well. The PMC largely stayed on schedule throughout harvest and was able to get orders out when needed.
Lori has finished the Financial Reports for March. They largely reflect the continued trend of increases in expenses with larger increases in revenue. One new line on the Statement of Financial Position in the Current Assets is PMC CDs (Edward Jones) in the amount of $300,000. That was a transfer from the checking account at Banner Bank which had exceeded the amount that is insured by FDIC. Three $100,000 CDs were purchased at Edward Jones with differing maturity dates of 3, 6, and 9 months. As they come due, they will provide the PMC with operating revenue during the usual negative cash flow period.
March however is not a negative cash flow month for the PMC fortunately. The Net Income for the Association posted on March’s Statement of Financial Position is a positive $475,142, $474,423 of which is from PMC operations. That is fortunate since cash flow will be negative for 9 months out of the year due to the seasonality of the business.
The biggest increase in revenues for the PMC is Plant Sales which totaled $1,514,546 for the fiscal year to date. That is an increase of $368,257 from the same date last year when PMC Plant Sales were $1,146,289 which is a 32% increase. It is important to note that one reason that the increase is currently as large as it is due to customers receiving and paying for their plants earlier than usual. That margin will decrease as the sales season wraps up. There are also increases in other revenue categories which combine for Total Operating Revenues PMC of a record-breaking $1,674,367. That is a 30.5% increase over the same date last year when Total Operating Revenues were $1,282,446.
Of course, these gains in revenue come at a cost of increases in expenses. The cost of Chemicals, Seeds, Seasonal Labor, and Staff Wages are a few of the more notable increases. It should be noted that while these expenses are higher than they were this time last year, they are within budget.
The one relatively large increase in expenses is Federal Income Tax Expense. Last year it was zero and as a result, was not included in this year’s budget. The Federal Income the PMC paid this fiscal year for the previous year was $35,905 which is a big increase in expenses.
Total Expenses for the fiscal year to date as of March 31, 2023 were $1,199,943 which is up $219,081 from the same time last year when they were $980,862. That is a big increase but the concern is tempered by the Net Revenue to date which is $534,013. That is a $281,159 increase from the same time last year when Net Revenue was $252,854. Overall, the PMC is in sound financial shape and looks to remain that way into the foreseeable future.
For the past 16 years, Bill Mulder has been the Farm Operations Supervisor Extraordinaire here. He is nearing the end of his tenure and heading off into retirement. He is using up his remaining annual leave which will be used up by the end of the month and is therefore gone from day-to-day operations. He will return upon occasion to help with special projects or needs. He has been instrumental in adapting operations for continued growth and increased efficiencies and will be missed, and we wish him well in retirement. Fortunately, the PMC has an excellent replacement for Bill in Oscar Arias. He brings with him years of farming as well as extensive experience as a mechanic. Bill has been orienting him for almost 5 months and remains available for questions and special projects. So far, the transition is progressing almost seamlessly and we want that to continue for years to come.
Sales and Shipping Continue
The PMC still has a good variety of plants that are available for this planting season, and with the weather we have been experiencing, the bare root planting season may continue later than usual. While the volume of shipping has decreased considerably, plants are leaving daily to go to their forever homes.
The cooler will remain on until perhaps early May to supply those late-season planters. It is important to note that by May the condition of the plants stored in the cooler for extended periods deteriorates so anyone looking for plants is encouraged to do it sooner than later. If you are one of those still needing plant materials, visit the PMC website at wacdpmc.org to see the current plant availability.
The PMC has been encouraging its clients to begin looking at their plant materials needs for next year, and beyond. More and more customers are ordering early so it is in one’s better interest to place orders for stock that will likely be needed next year. Prices have not been set yet but with the increases in labor, seeds, transplants, and more, some prices will need to rise some.
I hope this helps. Please let me know if you have any questions. You can find older posts about the Plant Materials Center at https://hub.wadistricts.org/topics/wacd/pmc/
Director of Nursery Operations