A major merger is in the works that affects Nebraska agriculture. It goes to stockholders for a vote.The board of directors of both the Midwest Farmers Cooperative and the Farmers Cooperative Company of Waverly have voted to merge the companies.
The Cassgram reports that according to mailings, the merger plan provides for Farmers Cooperative Company to be the surviving corporate entity changing its name to Midwest Farmers Cooperative. The effective date of the merger would be January 1, 2014, and the initial registered office would be in Elmwood. All shares of stock and equity of the respective cooperatives would retain full value in the merger.
Stockholders of both cooperatives will vote on the merger plan. Mail-in ballots will be sent out approximately September 1. The ballots will be counted on September 17th. A two-thirds majority is needed for the merger to be approved, said Midwest Farmers Coop General Manager Dale Piper.
Stockholder informational meetings are 7pm Tuesday (8/20) at the Nehawka Community Building; 2pm Wednesday (8/21) at the Ashland Golf Club; 2pm Thursday (8/22) at Kimmel Hall in Syracuse.
The letters to stockholders said the merger would enhance efficiencies and better serve their members. And the strength of the two companies together would better provide the required capital for future facility projects, said Piper.
Midwest had two major projects in the last year: a new grain elevator west of Mynard (to be partially open this fall) and a facility in Otoe County. Each has grain storage capacity of 1 million bushels.
The Farmers Cooperative Company has locations in Waverly, Prairie Home, Palmyra, Bennet, Burr, Cook, St. Mary, Adams, Martell, Elk Creek, and Tecumseh. It has 1,393 voting shareholders.
Midwest Farmers Cooperative has locations in Avoca, Brock, Dunbar, Eagle, Elmwood, Greenwood, Manley, Murdock, Mynard, Nebraska City, Nehawka, Otoe, Syracuse, Unadilla, and Walton. It has 1,372 shareholders.
By total sales, the new company would become the 8th largest farmers’ cooperative in the state, said Piper.