Two SD grain companies look to merge
Two South Dakota-based grain companies announced March 3 they want to merge. North Central Farmers Elevator and Wheat Growers plan to unify into a new cooperative, subject to a vote of the full membership of both cooperatives. The boards of direc...
Two South Dakota-based grain companies announced March 3 they want to merge.
North Central Farmers Elevator and Wheat Growers plan to unify into a new cooperative, subject to a vote of the full membership of both cooperatives. The boards of directors of both cooperatives already have unanimously approved a letter of intent to merge.
The proposed merger has been carefully considered, analyzed and evaluated over 10 months, according to a news release from the two cooperatives.
"This is not a move that we have entered into lightly," Wheat Growers Board President Hal Clemensen says in the release. "We have been focused on ensuring a long-term pathway of success for our members and customers. This is the right decision at the right time for our stakeholders."
North Central Farmers Elevator Board President Richard Osterday said, "We are committed to generating member value. We believe this long-term strategic decision will strengthen and enhance the locally owned cooperative system. We want to continue delivering quality products and services, innovation, growth and profitability for our members and customers."
Growth is essential in the increasingly competitive global marketplace, officials of the two cooperatives say.
A vote on the proposal is planned for June. In the next several weeks, North Central Farmers Elevator and Wheat Growers will work to finalize the plan and communicate with members and other stakeholders. Several local member meetings are being planned in addition to other communications.
North Central Farmers Elevator is a full-service, farmer-owned cooperative with product and service areas in grain, agronomy, feed and energy based in Ipswich, S.D. It has 21 locations serving more than 2,500 producer-members in north-central South Dakota and south-central North Dakota.
Aberdeen, S.D.-based Wheat Growers is a grain and agronomy cooperative with 5,400 active member-owners in eastern North Dakota and South Dakota. Its members now grow more corn and soybeans than they do wheat.