Members of Farmers Cooperative Elevator Company (FCEC) in Garden Plain, Kan., have approved a merger with Kanza Cooperative Association, Iuka, Kan. The merger will become effective on Sept. 1, 2024, with the combined organization headquartered in Iuka and operating under the Kanza Cooperative Association name.
FCEC members approved the merger in late May with a vote of 180-85, meeting the two-thirds majority required by Kansas law. The vote was the second scheduled for the merger, with an earlier vote in April failing to meet the threshold with a lower voter turnout of 113-57.
“We had an excellent turnout from the membership and are very pleased that the majority approved the merger,” said Dixie Brewster, Board President of FCEC. “This vote has set our cooperative on the best track to maintain high quality service and products to our members, stay the employer of choice in our communities, and protect our members’ equity for generations to come.”
The merger was unanimously approved by both boards earlier this year, with a definitive merger agreement signed in March and a letter of intent in January. The boards noted that both organizations are financially strong and share a similar geography and many of the same members, and said a combined business would be more efficient, provide stronger customer service, and create opportunities for synergies.
The combined cooperative will operate from 31 Kansas locations and employ a full-time staff of 204. Based on the latest full fiscal year, the combined agronomy, grain, energy, and feed businesses are projected to generate $407 million in annual sales with $285 million in total assets.
“We are excited for the synergy that is possible as we bring these two strong cooperatives together,” said Alvin Neville, Board Chair of Kanza. “We have so much in common from geography to services to strong financial positions. Together we will create a better cooperative for our members, employees, and the community we serve.”
Alan Woodard, current CEO of Kanza, will be the General Manager and CEO of the combined organization. Rusty Morehead, current CEO of FCEC, will remain on the management team as a key employee.
The new board will consist of nine current Kanza board members and two current FCEC board members, plus one additional associate board member from FCEC. Going forward, the 11-member board will consist of six members from the co-op’s west region, which is primarily Kanza’s existing territory, and six from the east, where FCEC’s operations are focused.
FCEC currently operates agronomy, feed, grain, and petroleum divisions from Kansas locations at Bentley, Halstead, Mount Hope, and Patterson. Kanza traces its roots to 1915 and began operating under the Kanza name in 2001 after several mergers and acquisitions. Another merger with Andale Farmers Cooperative in 2016 expanded the co-op again (GM Jan. 15, 2016), and Kanza currently operates agronomy, grain, feed, energy, and sunflower trading businesses from 27 locations.