The members of MaxYield Cooperative, headquartered in West Bend, Iowa, have approved a merger proposal with NEW Cooperative Inc. in Fort Dodge, Iowa. The merger will become effective Aug. 1, 2021.
“We are pleased to report the MaxYield membership has voted in favor of this merger,” said MaxYield Board Chairman Howard Haas in a July 2 statement. “Thank you to our members for taking time to attend meetings, looking over materials, and evaluating the merger proposal. We look forward to being a part of NEW Cooperative and look forward to the opportunities that will bring our members, clients, and team members.”
To approve the merger, Iowa law required at least 50 percent (plus one) of MaxYield’s Class A membership to vote, with at least two-thirds of those casting ballots voting in favor of the merger. The ballot counting committee consisted of two MaxYield board members, two MaxYield Class A voting members, and two representatives of the auditing firm Meriwether Wilson & Co PLLC.
The merger proposal was first announced in February, when the two co-ops said a unification study had been initiated (GM Feb. 19, p. 1) after initial overtures were made in December 2020. The Board of Directors of MaxYield then reported in April that the proposed merger would proceed to a member vote in June (GM April 30, p. 1).
MaxYield currently offers grain, seed, agronomy, energy, and feed products and services from 25 Iowa locations. The company also operates three Cenex convenience stores in Iowa, and provides grain origination and accounting services for three Iowa feed mills. NEW Co-op operates agronomy, grain, energy, precision ag, and feed divisions from 39 Iowa locations, and has 5,500 member-owners throughout western and northwestern Iowa. The traditional trade areas of both co-ops are contiguous.
“It’s exciting for me to see the members of MaxYield approve this merger in an effort to continue evolving, positioning for and maintaining a strong cooperative presence across the current MaxYield trade area,” said MaxYield CEO Keith Heim. “I appreciate and thank all MaxYield team members for their efforts and their willingness to be open-minded throughout this merger process. The transition process to an effective Aug. 1 merger date is well underway and will continue throughout July and beyond.”
The advantages of the merger were highlighted at a series of member meetings in June. Earlier in the process, Haas said a combined organization would have greater cash flow, a stronger balance sheet, and long-term staying power in the industry, with an increase in patronage earnings available to members. He also noted greater opportunities for grain marketing and feed manufacturing, and well as expanded fertilizer sourcing through NEW’s recently opened Port of Blencoe terminal on the Missouri River (GM June 18, p. 1).
Under the terms of the merger, NEW Co-op will continue to operate MaxYield’s Garner and Britt feed mills after the unification. NEW Co-op will also continue to offer MaxYield’s SciMax Solutions brand as the grower learning group platform alongside NEW’s MAPS brand. In addition, NEW will continue the harvest on-farm grain pick-up program at least through the fall of 2021, and will be reevaluated prior to the fall of 2022.
NEW’s Board of Directors will now expand to a total of 15, with the addition of three directors to be appointed by the MaxYield Board of Directors. Haas said all full-time MaxYield members have been offered jobs with NEW Co-op.
“We welcome the members and employees of MaxYield to NEW Cooperative,” said Dan Dix, NEW General Manager. “We thank the MaxYield membership for the support and confidence placed in NEW Cooperative by voting in favor of this merger and we also thank the staff of MaxYield for all of the work done during the merger study. I look forward to leveraging the value that this merger brings to the combined memberships and employees of both organizations.”