Landus, a farmer-owned cooperative based in Ames, Iowa, announced on April 12 that it has entered into an agreement with NuWay-K&H, another Iowa cooperative, on a new model designed for collaboration that the companies describe as “an innovative alternative to traditional mergers and acquisitions.”
According to a statement from Landus and NuWay, the new strategy is aimed at linking cooperatives and independents to collaborate on grain, feed, soybean processing, agronomy, data, technology, logistics, and back-office functions, while allowing each entity to maintain its autonomy and preserve its local community presence.
“Locally-based agricultural cooperatives and independent businesses have long played an important role contributing to farmer livelihoods and rural vitality,” said Matt Carstens, Landus President and CEO. “This strategy of local ag companies collaborating together is designed to modernize and protect the viability of these vital business offerings and services.”
Financial terms and additional details of the agreement were not disclosed, but a statement provided by the two companies said NuWay will become an optimization account with Landus while continuing to maintain a separate board of directors, employees, and operations. The two business said additional cooperatives and business are expected to join, with each agreement developed on a case-by-case basis and tailored to the strengths of each party.
Landus and NuWay said the strategy is “focused on improving service and competitiveness to drive more value for its collective membership and customers, while maintaining local influence and identity.” The companies said this approach also provides the opportunity to maximize capital investments, infrastructure capacity, and employee talent.
“NuWay-K&H is proactively entering this agreement with Landus to build on our cooperatives’ strengths and stay ahead of the marketplace,” said Kevin Jones, President and CEO of NuWay, who also joined Landus as Minnesota Business Unit Leader, effective April 12. “I’m looking forward to working with the Landus team and continuing my commitment to the success of NuWay-K&H Cooperative customers in my expanded role,” he said.
Landus was formed in 2016 through the merger of Farmers Cooperative Co. (FC) in Ames and West Central Cooperative in Ralson, Iowa (GM April 15, 2016). With 7,000 farmer-owners and 600 full-time employees at locations in more than 60 communities, it ranks as Iowa’s largest agricultural cooperative, providing products and services in agronomy, grain, feed, animal nutrition, and data.
NuWay-K&H has locations in northern Iowa and southern Minnesota, serving roughly 5,500 farms and non-farm customers with agronomy and energy products and services. The company has 85 full-time and 50 seasonal employees, and is headquartered in Clear Lake, Iowa.