Two Nebraska cooperatives – Farmers Cooperative Elevator Co. in Hemingford, and Panhandle Cooperative Assoc. in Scottsbluff – announced on Jan. 16 that their members have voted in favor of a merger, which will take effect on March 1, 2024.
The combined co-op will operate under the Legacy Cooperative name and will be headquartered in Scottsbluff, offering grain, agronomy, feed, energy, and grocery products and services to members and customers in the Nebraska Panhandle, southwestern South Dakota, eastern Wyoming, and northeastern Colorado.
The vote was certified at a special membership meeting on Jan. 11, with Panhandle members voting 626-77 in favor of the merger and Farmers members approving the merger with a 150-111 vote, the Scottsbluff Star-Herald reported. The two businesses said the merger will enhance operational efficiencies, improve service delivery, and increase value for members.
“The boards of both companies recognized the culture similarities of boards and management and the opportunities that a combined company could offer its members,” said John Haas, Chairman of the Farmers Co-op board. “This merger strengthens the positions of both cooperatives into the future while continuing the support of our communities.”
Charlie Wright, current CEO of Panhandle Co-op, will serve as Legacy Cooperative’s CEO, while Farmers Co-op CEO Bart Moseman will continue as Legacy Cooperative’s Chief Operating Officer.
“I would like to thank the forward-thinking members of both cooperatives that brought together two regional powerhouses known for their commitment to excellence and solutions,” Wright said. “Legacy Cooperative will leverage the collective expertise, resources, and cutting-edge technologies to revolutionize service to our combined trade areas while offering solutions to feed the world.”
The two businesses said there are no plans to close any facilities as a result of the merger. Initially, Farmers Co-op and Panhandle Co-op will each have seven directors appointed to the new board. Memberships and patronage of both cooperatives will be honored and carried forward in the new entity, with equity in Legacy Cooperative redeemed by age of equity.
“Panhandle doesn’t have grain; Farmers Co-op doesn’t have energy; we both have agronomy, but we don’t overlap,” Wright told the Scottsbluff Star-Herald. “It just vertically integrates us, and I think that’s really the important thing.”
Panhandle Co-op was formed in 1942 with 60 members, and now has 20,000 members and more than 350 employees. The company operates agronomy, energy, feed, and grocery businesses at Torrington, Wyo., and Nebraska locations at Scottsbluff, Alliance, Kimball, Dalton, Bridgeport, and Oshkosh.
Farmers Co-op traces its roots to 1918, and currently has 1,675 stockholders. The company operates grain, agronomy, and feed divisions in Martin, S.D., and at Nebraska locations in Hemingford, Hay Springs, Gordon, and Alliance.
“We are excited to bring these two great cooperatives together for the benefit of our patrons, employees, customers, and communities,” said Douglas Olsen, Panhandle Co-op Board Chair. “Legacy will be a cooperative leader in our region as we continue to provide exceptional goods and services that all our patrons and customers need and want. Legacy Cooperative will build on the history of these two cooperatives to develop and grow a legacy for future generations of stockholders, employees, customers, and patrons.”