The boards of directors of Agtegra Cooperative, Aberdeen, S.D., and Farmland Co-op Inc., Oakes, N.D., announced on June 8 that they have approved a merger proposal between the two organizations. If the merger is supported by Farmland members in a July vote, Farmland will officially become part of Agtegra.
The two co-ops announced in April that they had signed a letter of intent (LOI) to “study the benefits, opportunities, and risks” of a merger (GM May 11, p. 1). Farmland is a stock cooperative that was formed in 1975, and currently has 11 full-time employees and approximately 140 members. The company operates an energy business that provides propane and refined fuels, as well as a tire shop and a convenience store.
Agtegra began operations in February (GM Jan. 5, p. 1) and was formed from the merger of South Dakota Wheat Growers and North Central Farmers Elevator (NCFE), Ipswich, S.D. The company has 900 employees at more than 60 locations in North and South Dakota, and serves approximately 7,850 member-owners and 22,600 equity holders. In addition to offering grain and agronomy services, Agtegra offers its members aerial application services, fuel, animal feed, and precision ag hardware and software products and services.
“We are excited about this potential opportunity to expand Agtegra’s energy business and look forward to working with Farmland’s members, patrons, and employees,” said Agtegra CEO Chris Pearson in a June 8 letter to members. “Having Farmland join Agtegra would allow us to build on their expertise and enhance our fuel offering to our North Dakota customers. It also would allow us to increase our capabilities in an area that we already serve.”
Agtegra noted that it has no plans to enter the convenience store business, so that portion of Farmland’s business will be sold if the merger proceeds.