Another regional cooperative merger is under consideration in the Midwest. MaxYield Cooperative in West Bend, Iowa, has entered into a unification study with NEW Cooperative in Fort Dodge, Iowa, according to a Feb. 16 letter sent to Class A voting members of MaxYield.
The letter stated that the Boards of Directors of both co-ops recently met to exchange information about each organization and discuss the potential advantages and disadvantages of a fully combined operation. MaxYield said its board unanimously supports the merger study.
“While we believe that MaxYield is a successful member responsive organization, we must look forward and prepare for the future,” said MaxYield CEO Keith Heim and Board Chairman Howard Haas. “We are proud of MaxYield’s accomplishments and financial strength. However, it is the job of the elected Board of Directors and management to explore all opportunities to improve upon our support of our members and their production operations.”
MaxYield offers grain, seed, agronomy, energy, and feed products and services from more than 20 Iowa locations. NEW Cooperative operates agronomy, grain, energy, precision ag, and feed divisions from more than 40 locations in Iowa. The traditional trade areas of both co-ops are contiguous, according to the letter.
The co-ops said management and employees in operational areas of the companies will be meeting over the next several weeks to explore the potential value of a combined organization.