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PROGRESS REPORT
                                                        SUMMER 2012
                                                         By Greg Robertson, General Manager

Volume                                 Bleyhl Farm Service, Inc. is reporting sales of $48.5 million
XXVIV                                  through June 30, 2012, as compared to $43.8 million for the
Issue III   same period last year. This year’s sales increase of 10.7% is due to more unit sales from
Summer      orchard/vineyard supplies and agronomy products. Petroleum unit sales are down because
  2012
            of the limited number of nights light fuels and propane were used for crop protection.

            The net margin for Bleyhl through June 30, 2012, was $2.6 million as compared to $2.0
            million in 2011. The increase in profitability is again related to a strong farm economy
            overall and continued improvement in access to capital for growers to finance operations.
            The prices growers expect to receive from this year’s crops in
                                                                                   Sales thru June 30
            general are again at levels that support more inputs and
                                                                                   2010 $35,607,541
            expansion. The dairy industry is an exception to this because          2011 $43,799,617
            of lower milk prices projected for the year and the high cost of       2012 $48,490,564
            inputs. This year’s net margin includes $873,573 of patronage
            from CHS, Inc. and Land O’Lakes, Inc. as compared to Division Sales thru June 30
                                                                              Petroleum $18,123,146
            $551,662 last year.
                                                                             Retail Stores $19,351,066
                                                                             Agronomy $11,016,352
            Summary
            Bleyhl expects 2012 to be another profitable year for the           Net Margin thru June 30
            cooperative. Bleyhl continues to maintain a strong balance              2010 $1,277,326
                                                                                    2011 $2,004,980
            sheet and is well financed to take care of the growing needs of         2012 $2,619,350
            our 1,066 members. This will again allow Bleyhl to send you a
            dividend and equity check early next year. The cash payout
            growers received in February of this year for cash dividends, revolved equities and
            deceased member pay-outs was $532,338.
                                                                     Bleyhl remains focused to serve
                                                                     your needs in a timely and
                                                                     professional manner. In this
                                                                     newsletter be sure take notice of
                                                                     two new programs Bleyhl has for
                                                                     members. The Volume Incentive
                                                                     Program to buy new vehicles at a
                                                                     significant savings and AgriSpan
                                                                     by ProPartners Financial for
                                                                     agricultural financing.

                                                                   The Bleyhl TEAM appreciates and
                                                                   thanks you for your business.

                     2012 Summer Harvest Underway!
Agronomy Division Adds Two Consultants
                Samantha Graf joined the Bleyhl Agronomy TEAM May 16, 2012,
                working at the Grandview location. Born in Ellensburg and raised in the
                Yakima Valley, Samantha earned her American FFA degree, received her
                AA in Agriculture from YVCC and graduated from WSU with a BS in Ag.
                She majored in Agricultural Communications with emphasis in public
                relations and minored in Ag Economics. Most recently she completed her
                Masters of Science in Ag from WSU in June 2012. Samantha was a Staff
                Writer for the Capital Press newspaper and most recently served as the
                Extension Agent for the Fort Belknap Indian Community in North Central
                Montana. Samantha enjoys landscaping, wildlife photography and upland
                bird and predator hunting.

                  Gilbert Newhouse began his Bleyhl career June 1, 2012. Gilbert was
                 raised in the Sunnyside Area graduating from Sunnyside High School. He
                 attended WSU and studied Ag Economics. For 20 years he owned/operated
                 his farm raising hops and permanent crops. Gilbert previously worked for
                 JM Eagle and recently was an orchard/manager for Stadelman’s Fruit. He
                 enjoys boating and snow skiing with his wife, Sylvia and daughters,
                 Danielle and Alexandra.




            2012 EMPLOYEE
        AWARD RECOGNITION
                15 Years
                30 Years
                Al Fraga
                20 Years
Lloyd Van Hollebeke * Randy Beckman
            Mary Kay Febus                       Prosser Cardtrol pumps were recently modernized.
                15 Years                          Quicker credit card processing at all sites has been
       Nick Friend * Joel DeLeon                                       installed.
                10 Years
Russ Bowman * Jay Castle * Ivan Garza
   Bruce Dunnington * John Hancock
    Jose Larios * Darren Huenefeld                           Check out the Bleyhl Website
             Greg Newman                                          www.bleyhl.com
                                                         for Unadvertised Specials in August!
Attention Bleyhl Cooperative Members!
                        Discount Vehicle Purchasing Program
                   is available on Ford*GM*Chrysler*Dodge*Jeep
Bleyhl Farm Service, Inc. offers a volume incentive program that
consolidates the buying power of the entire cooperative system to
secure discounts on new vehicles.

All Bleyhl members qualify for savings with Ford, GM and Chrysler, Dodge, Jeep
Vehicle is ordered to your exact specifications. Cars, Vans, SUVs, Trucks and Medium Duty Truck are available to order.
2013 model year is now in production.
                                           Plan your vehicle purchase now!
Saxon Fleet Services will help you arrange for financing or leasing or work with your finance source. Order to
delivery lead time is, on average, 10 weeks.

For over 20 years, Saxon Fleet Services has administered the Volume Incentive Program. Committed to
providing the highest level of personal service along with financing and remarkably low pricing that saves you,
the co op member, thousands of dollars and hours of time.


    2013 Chevrolet Silverado 1500 4WD Crew Cab LT            2013 Ford Explorer 4WD 4dr XLT         2013 Chevrolet Impala 4dr Sdn LS
    Vehicle Examples         $30,350                                    $31,250                                 $21,250
                            MSRP $38,665                              MSRP $36,670                               MSRP $26,105
    *Call for Specifications. Price includes local delivery but does not include local taxes, local license & title fees, and any
    additional fees. Commercial registration only. In Stock vehicles available on a per quote basis.


                                                  For answers to all ordering questions for the
                                           Bleyhl Farm Service, Inc. Vehicle Purchasing Program, call:
                                                             BRIAN STROMQUIST
                                                          1 800 456 1265, ext. 1860
                                                     bstromquist@saxonfleetservices.com


                       Bleyhl Customers Still Taking Advantage of
                        Agricultural Financing through AgriSpan
                                                 Bleyhl customers have shown great interest in financing their crop nutrients,
                                                 crop protection products, seed, petroleum products, and application services
                                                 since Bleyhl introduced this program in 2007. Loan commitments for 2012
                                                 for Bleyhl Ag customers are at $1,052,761. The application process is simple
                                                 and takes only a few minutes to complete. Loans
                                                 begin at $10,000 with no maximum amount. There
                                                 is now an express application if your credit
                                                 score is over 700.

Applications for 2013 are now being taken. Pick up an application from Tami Mason, Credit
Manager, at the Grandview Main Office, or call her at 509 882 2248. Email: tami@bleyhl.com

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Bleyhl Farm Service Reports Increased Sales and Profits in 2012 Progress Report

  • 1. PROGRESS REPORT SUMMER 2012 By Greg Robertson, General Manager Volume Bleyhl Farm Service, Inc. is reporting sales of $48.5 million XXVIV through June 30, 2012, as compared to $43.8 million for the Issue III same period last year. This year’s sales increase of 10.7% is due to more unit sales from Summer orchard/vineyard supplies and agronomy products. Petroleum unit sales are down because 2012 of the limited number of nights light fuels and propane were used for crop protection. The net margin for Bleyhl through June 30, 2012, was $2.6 million as compared to $2.0 million in 2011. The increase in profitability is again related to a strong farm economy overall and continued improvement in access to capital for growers to finance operations. The prices growers expect to receive from this year’s crops in Sales thru June 30 general are again at levels that support more inputs and 2010 $35,607,541 expansion. The dairy industry is an exception to this because 2011 $43,799,617 of lower milk prices projected for the year and the high cost of 2012 $48,490,564 inputs. This year’s net margin includes $873,573 of patronage from CHS, Inc. and Land O’Lakes, Inc. as compared to Division Sales thru June 30 Petroleum $18,123,146 $551,662 last year. Retail Stores $19,351,066 Agronomy $11,016,352 Summary Bleyhl expects 2012 to be another profitable year for the Net Margin thru June 30 cooperative. Bleyhl continues to maintain a strong balance 2010 $1,277,326 2011 $2,004,980 sheet and is well financed to take care of the growing needs of 2012 $2,619,350 our 1,066 members. This will again allow Bleyhl to send you a dividend and equity check early next year. The cash payout growers received in February of this year for cash dividends, revolved equities and deceased member pay-outs was $532,338. Bleyhl remains focused to serve your needs in a timely and professional manner. In this newsletter be sure take notice of two new programs Bleyhl has for members. The Volume Incentive Program to buy new vehicles at a significant savings and AgriSpan by ProPartners Financial for agricultural financing. The Bleyhl TEAM appreciates and thanks you for your business. 2012 Summer Harvest Underway!
  • 2. Agronomy Division Adds Two Consultants Samantha Graf joined the Bleyhl Agronomy TEAM May 16, 2012, working at the Grandview location. Born in Ellensburg and raised in the Yakima Valley, Samantha earned her American FFA degree, received her AA in Agriculture from YVCC and graduated from WSU with a BS in Ag. She majored in Agricultural Communications with emphasis in public relations and minored in Ag Economics. Most recently she completed her Masters of Science in Ag from WSU in June 2012. Samantha was a Staff Writer for the Capital Press newspaper and most recently served as the Extension Agent for the Fort Belknap Indian Community in North Central Montana. Samantha enjoys landscaping, wildlife photography and upland bird and predator hunting. Gilbert Newhouse began his Bleyhl career June 1, 2012. Gilbert was raised in the Sunnyside Area graduating from Sunnyside High School. He attended WSU and studied Ag Economics. For 20 years he owned/operated his farm raising hops and permanent crops. Gilbert previously worked for JM Eagle and recently was an orchard/manager for Stadelman’s Fruit. He enjoys boating and snow skiing with his wife, Sylvia and daughters, Danielle and Alexandra. 2012 EMPLOYEE AWARD RECOGNITION 15 Years 30 Years Al Fraga 20 Years Lloyd Van Hollebeke * Randy Beckman Mary Kay Febus Prosser Cardtrol pumps were recently modernized. 15 Years Quicker credit card processing at all sites has been Nick Friend * Joel DeLeon installed. 10 Years Russ Bowman * Jay Castle * Ivan Garza Bruce Dunnington * John Hancock Jose Larios * Darren Huenefeld Check out the Bleyhl Website Greg Newman www.bleyhl.com for Unadvertised Specials in August!
  • 3. Attention Bleyhl Cooperative Members! Discount Vehicle Purchasing Program is available on Ford*GM*Chrysler*Dodge*Jeep Bleyhl Farm Service, Inc. offers a volume incentive program that consolidates the buying power of the entire cooperative system to secure discounts on new vehicles. All Bleyhl members qualify for savings with Ford, GM and Chrysler, Dodge, Jeep Vehicle is ordered to your exact specifications. Cars, Vans, SUVs, Trucks and Medium Duty Truck are available to order. 2013 model year is now in production. Plan your vehicle purchase now! Saxon Fleet Services will help you arrange for financing or leasing or work with your finance source. Order to delivery lead time is, on average, 10 weeks. For over 20 years, Saxon Fleet Services has administered the Volume Incentive Program. Committed to providing the highest level of personal service along with financing and remarkably low pricing that saves you, the co op member, thousands of dollars and hours of time. 2013 Chevrolet Silverado 1500 4WD Crew Cab LT 2013 Ford Explorer 4WD 4dr XLT 2013 Chevrolet Impala 4dr Sdn LS Vehicle Examples $30,350 $31,250 $21,250 MSRP $38,665 MSRP $36,670 MSRP $26,105 *Call for Specifications. Price includes local delivery but does not include local taxes, local license & title fees, and any additional fees. Commercial registration only. In Stock vehicles available on a per quote basis. For answers to all ordering questions for the Bleyhl Farm Service, Inc. Vehicle Purchasing Program, call: BRIAN STROMQUIST 1 800 456 1265, ext. 1860 bstromquist@saxonfleetservices.com Bleyhl Customers Still Taking Advantage of Agricultural Financing through AgriSpan Bleyhl customers have shown great interest in financing their crop nutrients, crop protection products, seed, petroleum products, and application services since Bleyhl introduced this program in 2007. Loan commitments for 2012 for Bleyhl Ag customers are at $1,052,761. The application process is simple and takes only a few minutes to complete. Loans begin at $10,000 with no maximum amount. There is now an express application if your credit score is over 700. Applications for 2013 are now being taken. Pick up an application from Tami Mason, Credit Manager, at the Grandview Main Office, or call her at 509 882 2248. Email: tami@bleyhl.com