Midwestern US agri co-ops Central Valley Ag (CVA) and Randall Farmers Co-op Union (RFCU) have jointly announced that their boards have approved a merger agreement, subject to member approval.
They say the move “reflects a shared commitment to the co-operative model, and a strategic vision focused on enhancing value for members, investing in facilities and people, and positioning both organisations for continued growth in a rapidly evolving agricultural landscape.”
Farmer-owned CVA, based in York, Nebraska, was formed in 2003 from a merger of three co-ops and has since consolidated with several other co-ops to make it a leading grain handler. It has agronomy, grain, feed and energy locations in Iowa, Kansas and Nebraska, including 56 licensed grain storage facilities and 145 million bushels of storage.
Based in Randall, Kansas, RFCU dates back to 1915 and is a full-service agri co-op with locations in north central Kansas, offering services in grain, agronomy, feed and energy.
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“After careful evaluation and thoughtful discussion, we believe this merger represents a strong strategic fit and an exciting opportunity for both co-operatives,” said Nic McCarthy, president/CEO of CVA. “CVA has a proud history of serving its members with integrity and dedication. By bringing our organisations together, we can build on that legacy, strengthen our regional presence, and create additional opportunities for our members and employees.”
Luke Carlson, CVA chair, added: “We believe this proposed merger provides opportunity for long-term strength and continued service to the producers in that region.”
Kris Allen, general manager of RFCU, said: “Our priority has always been serving our patrons and supporting our communities.
“We believe CVA is the right partner to carry that forward and continue providing the quality of service our members expect.”
RFCU chair Nathan Greene said: “Our board carefully considered the long-term needs of our members, employees and communities.
“We believe this merger with Central Valley Ag is the best pathway to continued progress and stability for the future. CVA shares our co-operative values and commitment to local service, and together we will be stronger and better positioned to serve the next generation of producers.”
Both organisations say they are committed to maintaining strong local relationships and ensuring a smooth transition process should members approve the merger.
Additional details regarding the member vote and transition planning will be shared directly with members and employees as the process moves forward.
Responding to rumours of site closures after the merger, a statement on the RFCU website said: “This proposed merger between Central Valley Ag and Randall Farmers Co-op Union is about strengthening service, stability, and long-term success. It is not about closing locations or eliminating jobs. Claims suggesting otherwise are inaccurate.
“We have heard the rumors that facilities will be shut down immediately. That is simply not how this process works, and it is not the intent of this merger. Our focus is on supporting our employees, serving our members well, and making sound decisions that position the co-operative for long term strength.
“Change brings questions, and that is fair. What is not helpful is speculation that creates unnecessary concern. We are committed to sharing clear information as it becomes available so our employees, members, and communities can make informed decisions based on truth, not assumptions.”
The co-op added that in-person informational meetings would be scheduled, and an informational packet will be mailed in the coming weeks.
“Our co-operative model works because of our people and our deep roots in the communities we serve,” RFCU added. “That will not change. The leadership of Randall Farmers Co-op Union completed thorough due diligence to evaluate how best to serve their trade area and protect the long-term health of the co-operative.
“After careful review, we believe this proposed merger is the right path forward to ensure stability, opportunity, and long-term success for our members, employees, and communities.”
