OWATONNA — Farmer-owners of Central Valley Cooperative, Owatonna, and Wantonwan Farm Service, Truman, have approved a plan of merger to bring their two companies together.
Officials say 74.86 percent of the Central Valley membership ballots were cast in favor and 75.86 percent of the WFS ballots cast supported the unification.
The merger will go into effect March 1 and the newly unified company will be named Central Farm Service. WFS Chief Executive Officer, Todd Ludwig will take the reins as CEO of the new company, and CVC CEO Gary Mohr will become the Chief Administrative Officer. Administrative offices in Owatonna and Truman will remain open.
The plan was first announced to the respective memberships in a letter on Oct. 14. Following harvest, informational meetings were held and ballots, along with additional information, were mailed to voting members with a due date of Dec. 21.
"With this positive vote, our members have created a long-term, viable local cooperative that will thrive in the decades ahead," said WFS Board Chairman Charlie Johnson. "While we projected $5 to $7 million in tangible benefits to our members in our proposal, I think the intangible benefits may be even greater."
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"Growth is a large component of success," added Eric Schrader, CVC Board Chairman. "We believe that the unified cooperative will be a survivor, and we feel fortunate to have had the opportunity to bring these two strong cooperatives together."
Equity held by both memberships will transfer dollar-for-dollar and all existing equity is intended to be retired under the current practices of each co-op. Equity earned in the new co-op will be retired on years earned. There also will be equal representation from each of the former cooperatives, with six directors from each board.
The projected annual sales of the combined cooperative are expected to exceed $600 million with a diversified product and service line that includes grain marketing and merchandising; crop production, seed and precision ag; bagged feed and bulk feed manufacturing; bulk energy delivery and storage; and producer financing.
Central Farm Service will service a trade area that is about 110 miles north and south from Randolph into Iowa and 125 miles east and west from Hayfield to Welcome. The two companies currently cover a trade area that is adjacent to each other but don't operate facilities in the same communities.
CVC had revenues of more than $258 million last year, 180 full-time and more than 65 seasonal employees.
WFS is a farmer-owned cooperative operating facilities throughout south central Minnesota and north central Iowa. With sales of more than $359 million in 2015, WFS serves more than 4,000 customers, while employing 230 full- and part-time employees.
