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Fiscal Year Net Savings (Loss)
1984 $11,193,000
1985 (61,082,000)
1986 (152,228,000)
Petitioner was organized for the primary purpose of
supplying petroleum products such as gasoline, kerosene,
motor oil, lubricating oils, and grease to its member
cooperatives for sale to their patrons. Petitioner
originally purchased these products in a packaged or
processed state from various suppliers and then resold
them to its members. During the 1930's and 1940's,
petitioner expanded its product lines to include additional
refined petroleum products as well as feed, seed,
fertilizer, agricultural chemicals, tires, batteries, and
miscellaneous farm supplies. Petroleum and fertilizer have
been petitioner’s two largest product lines, by volume of
sales, since at least 1973.
In 1942, petitioner formed a subsidiary called the
Cooperative Finance Agency to provide financing to local
cooperatives. Petitioner also began a grocery business, a
cannery, and a lumber mill to provide goods to its members.
Many of petitioner’s nonpetroleum lines of business
produced little or no profit and required large capital
investments. As a result, petitioner’s expansion during
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Last modified: May 25, 2011