Background

The logo change was due in large part to shifts in the company’s product makeup and its customer base. Known throughout the years as an agricultural cooperative, few people outside the co-op system understand exactly what the Co-op Circle logo now represents. Today, CountryMark is exclusively an energy company. It is a quality producer of on-road and off-road diesel, gasoline and a leader in biofuel blending and distribution, and more than half its sales comes from non-farm customers. It supplies fuels and lubricants through local cooperatives across Indiana and into neighboring states including Michigan, Ohio and Illinois.

- Jon Lantz, CountryMark vice president of marketing

Early History
Although CountryMark historically offered a broad range of agricultural goods and services, fuels and lubricants have always been a primary focus of the cooperative. CountryMark entered the petroleum market as a necessity for its members. Farmers were unable to source consistently good quality lubricant products at a fair price, and their expenses were unreasonably high as a result. Key dates in its history include:

1919 – The Indiana Federation of Farmers’ Associations, the forerunner to CountryMark, is organized.

1925 – The passage of the Indiana Agricultural Co-operative Act paves the way for change. In 1926, the Indiana Farm Bureau Federation board of directors votes to reorganize and separate its purchasing department, and reincorporate it under the Co-operative Act. The name of this new entity is officially changed in 1930 to the Indiana Farm Bureau Co-operative Association. Its ownership structure differs from most other cooperatives in that it is not owned by individual farmers, but rather by 82 county cooperative associations.

1930 – The board of directors orders its first industrial undertaking – construction of a compounding plant to produce Farm Bureau Co-operative oils. The board was forced to take this action after unsuccessful efforts to work with the legislature to pass laws requiring proper labeling of engine lubricant products. Because of poor quality lubricants the average farm tractor engine at this time had a life of only five years. The cooperative sought to remedy this problem by producing its own lubricants with detailed quality specifications.

1936 – The cooperative purchases its first fleet of petroleum transport trucks.

1940 – A refinery is constructed in Mount Vernon after a gusher well is discovered in Posey County, and work begins on a gathering system and pipeline. The refinery is expanded in 1946, and has undergone continuous upgrades and expansion to date. 
From the beginning, CountryMark has controlled the petroleum production process, from the time it is pumped from the ground to when it is pumped into a customer's fuel tank. This has allowed the company to carefully control quality standards. Because of its history of delivering the best possible product, cooperative fuels and lubricants produced by CountryMark are widely trusted to deliver superior performance backed by outstanding service delivered through local cooperatives.

Recent History and Today
In recent years, CountryMark has made significant investments in its operations that have resulted in a competitive, focused and successful energy company. It is stronger financially than it ever has been in its nearly 80-year history, with sales at $1.3 billion and record patronage returned to co-op members.

But the story of CountryMark over the past decade is also one of a terrific turnaround. Changes in the company that are bearing fruit today were borne from difficult times faced by the cooperative (as well as many other regional United States cooperatives). In the late 1990s, shifts in global markets and a weak petroleum market created financial difficulties that prompted the sale of CountryMark's feed, seed and fertilizer businesses to Land O'Lakes and a change in top management.

The cooperative quickly responded to these challenges, however, as new management with significant petroleum expertise came on board. A number of changes were instituted that put the company in position to benefit from today's strong market for fuels. For example:
CountryMark has made significant new investments in its refinery operations in recent years to improve safety and make the operation more efficient.

The company spends significantly more time analyzing market forces and market factors that affect its ability to take assets and make them productive. It develops strategic plans based on this analysis of both the U.S. and global markets.

The culture has changed from one of a small, localized business, to one that realizes it must make decisions based on a long-term outlook and generate returns to help it prepare for the future by reinvesting in its people and facilities.

Local cooperatives have been successful in attracting new customers who value the same attributes as their traditional agricultural customers – assured supply, quality products, trust and integrity.

The Future
The emergence of a healthy, profitable CountryMark and its branded member cooperatives contribute to the economic vitality of Indiana and the surrounding region, and it has plans to be an even more visible economic force in the coming years. For example:
CountryMark continues to reinvest earnings to upgrade and expand its facilities. The result has been more Midwestern jobs and cleaner, safer and more productive operations.

CountryMark plans to continue to reinvest and grow, and is dedicated to increasing its commitment to alternative fuels. In fact, it is already the largest distributor of biodiesel in Indiana, and it is recognized nationally as a leader and innovator in bringing alternative fuels to market.

CountryMark is exploring its options in investing in other opportunities in Midwestern agriculture that will ensure the continued growth of environmentally friendly and renewable resources.

CountryMark is looking for expansion opportunities to fuel its market growth.

Contact: Belinda Puetz, 317-238-8225