In this interview with brand leader Margy Eckelkamp, Josh Wurmnest, Regional Business Manager at Growmark, says retailers and growers alike are already feeling the squeeze, with global unknowns adding to the pressure. At the same time, consolidation is picking up in the FS system, and Wurmnest says some healthy, independent companies are merging by choice, not necessity.
Margy: If you would get our audience a little bit familiar with your role at Growmark.
Josh: A lot of what I do is based around relationships. So in this role, I get to work with a lot of our local FS member companies, primarily my area I cover and support is Northern Illinois and Iowa, and I’m working with the general managers at those FS member companies, their leadership teams, boards of directors. And really act as a liaison between the member company and GrowMark, and help facilitate things and connect people with resources and ideas.
Margy: Every ag retail company is structured and operates differently. As you started to explain the Growmark system and those FS member companies, in your own words, would you share a bit more about the relationship there?
Josh: GrowMark is a cooperative, and made up of other cooperatives, right? For the most part, any FS company you might see, and here locally, just to name a couple, Evergreen FS, Heritage FS. These FS member companies, they are member owners of Growmark. Like I say, GrowMark is a cooperative structure in the same way as what those local co-ops are, and the way I view our role at GrowMark is we exist to support those local member companies, and that’s through a variety of different resources. Primarily, we are here to supply product, first and foremost, but then we also offer other services and training and support as well.
Margy: This time of year, what are you helping those FS companies with? As liaison, what’s most of your communication about this time of year?
Josh: Right now, most of the companies in the system, and including Growmark, fiscal year end was August 31st, right? So, coming off that year end and getting to review the past year. Right now, I’m attending a lot of audit board meetings, annual meetings, those types of things, and this season is really kind of a look back at the past year. And what can we glean from those results?
Margy: Looking into 27, what would you just share as maybe a focus for so much of that retail footprint in those businesses?
Josh: Obviously, there’s a lot going on in the world right now, especially as far as policy and trade and supply, all those things. I think a big focus for the retailers, and all the way down to the grower, is you have a tremendous amount of margin compression, right? And like I say, dealing with some of those supply issues and other constraints, profitability and trying to maintain some of that margin is going to be a challenge going forward, and trying to keep things headed in a positive direction when we’re coming off of some of the best financial income years in ag history.
Margy: Especially with those folks that you work the closest with in Illinois and Iowa, what are the top trends that you point to that are kind of writing the future of what ag retail and the cooperative system looks like?
Josh: I would say both within our system, the FS Growmark system, and throughout the ag industry, right now we’re seeing quite a bit of consolidation, so via mergers, acquisitions, that type of thing. And some of them are coming from places where maybe one of those parties in that transaction has a true need for that to happen, because maybe they’re under some sort of duress, right?
Currently, within the system, what we’re seeing is some of those consolidations are happening when both of those companies are in a really good place to do that, because they don’t have to, right? They’re financially strong, healthy, independent, and they’re making a choice about their future moving forward. So I do believe we’re probably going to continue to see more and more of that consolidation, and it’ll be really interesting what the next 5 to 10 years looks like across the ag space.
Margy: Even just looking ahead to 27, what might be one thing that’s different in this space in 27 than it was in 26?
Josh: Well, like I said, I’ll go back to, over the last several years have been pretty phenomenal years from an income standpoint in ag, and you’re feeling the squeeze this past year, and I think we’re probably all going to feel it a little more in 27. I think that’s going to be the biggest difference, is that things are just going to get tougher and tighter than what they are right now.
And there’s so many unknowns as well, right? We started last year off not having any idea with this whole Strait of Hormuz situation, and Iraq and Iran [?], and all the things that are happening globally that have a huge impact on us here locally. We’re stepping into this year knowing that some of this exists out there, but then it’s also kind of, what else is going to land on our plates this coming year?
Margy: You are on the podcast because you were named to our 40 Under 40 awardee class, so congratulations. What words would you share with someone who’s in the early chapters of their career in this industry?
Josh: I’ve been very fortunate and blessed to have had a number of different experiences throughout my career and life so far. From a leadership standpoint, some things to keep in mind and consider: listen, right? Show up not necessarily to express your own thoughts, points of view, those things. I mean, it’s great to contribute, but show up to truly listen.
Build relationships, that’s key, no matter what industry, where you’re at in the world, but particularly in agriculture, it’s really a very small community. Follow through, right? So if you say you’re going to do something, you’re going to call back, you’re going to provide a resource, then do that, keep your word. And I think having a willingness to learn, right? We don’t know what we don’t know, and I’m very much of the opinion you can learn something from everybody you meet.
