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FCC Member-Owners Approve Merger

Apr 06, 2015

FCC Member-Owners Approve Merger

On March 31, 2015 the stockholders of Farmers Cooperative Company (FCC) met to ratify the votes cast by FCC member-owners approving the merger into Central Valley Ag Cooperative (CVA) effective July 1, 2015. FCC member-owners approved the merger proposal, with Iowa law requiring 50% of the member-owners to vote, with 2/3 of those votes cast to favor the proposal in order for the merger to pass. 72% of the FCC patrons voted with 90.5% voting in favor of the merger, this overwhelming support means the world to us.

As a cooperative, we’ve always liked to operate in areas that have good production and assets. Farmers Cooperative Company brings both of those to the table, along with the fact that its stockholders share the same philosophy as CVA - we believe in the cooperative system. Consolidation in agriculture has been continuing since 1952 and moving forward this is the way to bring value to both companies for generations to come. This merger is a great example of how we are reforming the cooperative system to meet the needs of our member-owners today and into the future.

Farmers Cooperative Company is a full-service coop handling grain, feed, fertilizer and energy. FCC provides these services for over 800 member-owners with locations in Hinton, Oyens, Akron and LeMars Iowa. Their Hinton location is only 14 miles from CVA’s South Sioux City location, and only 62 miles from the Oakland, NE East Hub.

The FCC Hinton, IA location has 4.8 million bushels of concrete upright storage. The FCC Hinton, IA location has 4.8 million bushels of concrete upright storage.

Over the past two years, FCC’s Board of Directors has been working to position their coop for the future. After exhaustive research and analysis with eight different companies, the FCC Board of Directors chose CVA as their partner for the future.

Throughout that process, four major goals for FCC were identified. They must secure their members equity, get access to capital needed to upgrade equipment and facilities, re-evaluate the way they currently do grain business and maintain a voice in their future.

Darwin Franzen is currently the President and CEO of Farmers Cooperative Company. Darwin stated, “We feel that CVA’s past performance and strength of their balance sheet provides the necessary capital and means to secure our assets and bring a great future for employees and customers alike.”

A key asset in this merger for CVA is the Hinton elevator. This elevator has 4.8 million bushels of concrete upright storage and has the option to load shuttles on three railroads. The Canadian National (CN) currently runs through Hinton, providing a new market to CVA that we don’t currently get to serve.

We are thrilled that FCC chose CVA as their partner for their future. CVA will remain committed to providing innovative products, services, and information in a professional manner that will allow us to “Grow Agriculture Together.”

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