Tag Archives: Irrigation

Central Arizona farmers were making a last-minute plea Thursday to state lawmakers for $20 million to dig wells and build canals as they prepare to lose access to Colorado River water.

With budget talks heating up between legislative leaders and aides for Gov. Doug Ducey, a wide variety of interests are jockeying for a share of a $1 billion surplus in the roughly $11.5 billion budget.

Pinal County farmers say they urgently need the money to transition to using groundwater.

“We have a good strong economy in this state,” said Republican Rep. David Cook, a rancher who represents much of the county and has led the charge for more state money. “We invest in things all the time. This is an investment in infrastructure.”

Farmers between Phoenix and Tucson face the most drastic cuts under a seven-state plan to take less water from the drought-stricken river.

Water rights are based on seniority, and in a shortage, the junior players lose out first.

Pinal County farmers agreed in the early 2000s to take the lowest-priority position in the pecking order in exchange for cheaper water. They thought they’d have access to Colorado River water until 2027.

But lakes Mead and Powell — the major reservoirs that store Colorado River water — have fallen precipitously low since then after two decades of dry weather in the seven-state river basin. There isn’t enough rain and snowfall to deliver all the water promised for 40 million people and millions of acres of farmland.

Lawmakers have already committed $9 million to help the farmers’ transition to groundwater and are allowing them to use existing taxes on groundwater pumping to build more infrastructure.

The farmers are asking the state for $20 million more, which they say would be repaid by the federal government.

“If we don’t have the money now, money from the feds later will be a day late and a dollar short,” said Tiffany Shedd, a lawyer and farmer.

OMAHA, Neb.–(BUSINESS WIRE)–Lindsay Corporation (NYSE: LNN), a leading global manufacturer and distributor of irrigation and infrastructure equipment and technology, today announced results for its second quarter ended February 28, 2019.

Second Quarter Summary

Revenues for the second quarter of fiscal 2019 were $109.2 million, a decrease of $21.2 million, or 16 percent, compared to revenues of $130.3 million in the prior year’s second quarter. Approximately $19.6 million of the total decrease in revenues was attributable to previously announced business divestitures in the irrigation segment as part of the Company’s Foundation for Growth initiative.

The Company incurred a net loss for the quarter of $3.4 million, or $0.32 per diluted share, compared with net earnings of $1.7 million, or $0.16 per diluted share, for the same period in the prior year. In addition to the impact of lower revenues, net earnings for the quarter were reduced by after-tax costs of $3.7 million, or $0.34 per diluted share, related to the Company’s Foundation for Growth initiative. Excluding these additional costs, net earnings for the second quarter would have been $0.2 million, or $0.02 per diluted share. 1 Net earnings for the same period in the prior year adjusted for these costs, plus the tax expense attributable to enactment of the U.S. Tax Cuts and Jobs Act, were $6.0 million, or $0.56 per diluted share. 1

“North America irrigation sales volumes were significantly lower than anticipated as the unresolved US-China trade dispute contributed to a further decline in farmer sentiment,” said Tim Hassinger, President and Chief Executive Officer. “Along with that, lower Road Zipper System ® sales contributed to a disappointing quarter. We were however pleased to see an increase in our international irrigation sales compared to the prior year.”

Segment Results

Irrigation segment revenues for the second quarter of fiscal 2019 were $95.8 million, a decrease of $16.1 million, or 14 percent, compared to $111.9 million in the prior year’s second quarter. Excluding the impact of the divestitures, North America irrigation revenues of $57.7 million decreased $1.6 million, or 3 percent, compared to the prior year. Lower irrigation equipment sales volume was partially offset by higher average selling prices and higher revenue from engineering project services. International irrigation revenues of $38.1 million increased $5.1 million, or 15 percent, compared to the prior year. Excluding the negative impact of differences in foreign currency translation compared to the prior year, international irrigation revenues increased $7.4 million, or 22 percent, led by higher project sales in developing markets.

Irrigation segment operating margin was 7.9 percent of sales in the second quarter, compared to 10.7 percent of sales (11.2 percent adjusted) 1 in the prior year. Irrigation segment operating margin was negatively impacted in the quarter by negative margin mix from lower equipment sales volumes in North America, higher warranty costs and operational inefficiencies.

Infrastructure segment revenues for the second quarter of fiscal 2019 were $13.4 million, a decrease of $5.1 million, or 27 percent, compared to $18.5 million in the prior year’s second quarter. The decrease resulted primarily from lower Road Zipper System ® sales compared to the prior year along with slightly lower sales of road safety products.

The infrastructure segment incurred an operating loss of $0.4 million in the second quarter, compared to operating income of $2.5 million in the second quarter of the prior year. The decrease resulted primarily from lower Road Zipper System ® sales compared to the prior year.

The backlog of unshipped orders at February 28, 2019 was $44.4 million, compared with $90.2 million at February 28, 2018. Approximately $14.8 million of the backlog reduction resulted from the business divestitures and $28.5 million of the reduction is from a lower backlog of Road Zipper System orders compared to the prior year.

Foundation for GrowthInitiative

In fiscal 2018, the Company announced a defined performance improvement initiative, referred to as Foundation for Growth, with the objectives of simplifying the business and achieving operating margin performance of 11 percent to 12 percent in fiscal 2020, assuming no improvement in market conditions from fiscal 2017.


“Impacts of the recent widespread flooding in the Midwest are unknown at this time, and we don’t expect to see meaningful improvement in farmer sentiment while the U.S-China trade uncertainty persists,” said Mr. Hassinger. “We expect market conditions in Brazil to continue improving and international project markets to remain active.”

Mr. Hassinger added, “I’m encouraged by the early signs of success we are seeing in our Road Zipper System strategy to be more involved in the planning stage of major highway construction projects, and we expect to see additional sales and leasing opportunities as a result.”

With flood waters beginning to recede on more than a million acres of farmland in the Midwest, growers will be wanting to restore their operations. Reinke Manufacturing is reminding you of some critical safety guidelines.

  • Wait for the waters to completely recede.
  • Contact your dealership to inspect your system for needed repairs or to restore power to your center pivot and other irrigation equipment.
    • Do NOT attempt to do this yourself as there could be additional electrical safety hazards due to debris striking electrical components on equipment, broken power lines and other unforeseen dangers.
    • Your local dealership has a great deal of experience with irrigation systems and will be more likely to notice additional damage, problems or needed repairs before you go on-site or contact your insurance company.
    • *Be Aware* – Some areas are requiring a permit before restoring any form of power. Your local dealership will know how to find this information.
  • Contact your insurance company to file a claim. Claims should be completed as soon as possible.

“Our thoughts and prayers go out to the farmers and ranchers who are suffering because of the historic flooding that has hit the Midwest,” said Chris Roth, Reinke President. “Many of us have never seen this level of flooding before, so we wanted to make sure growers are safe as they head out into their fields. Your safety is of the utmost importance.”