In 1996, Saskatchewan Wheat Pool embarked on a strategy for growth and diversification by significantly expanding its asset base. This expansion brought with it many new costs, especially new fixed costs such as interest and depreciation. They failed to achieve the new revenues needed to support the higher fixed costs and consequently, found themselves in financial distress. In 2000, Mayo Schmidt was brought in as CEO to turn the company back to profitability. His strategy was to sell off all non-core assets and focus on the core businesses that built the company; grain handling and supplying farm inputs. 2004 would be a crucial year for Saskatchewan Wheat Pool.