The Boards of Directors of First Cooperative Association (FCA), Cherokee, Iowa, and Alceco, Albert City, Iowa, have voted unanimously to proceed with a proposed merger of the two cooperatives. The decision follows a merger study that was initiated in December (GM Dec. 18, 2020).
“The farmer members who make up the Alceco and FCA boards agreed that the benefits of a new, combined organization retaining local management and local board representation is the best path forward to support the continued success of our cooperative to benefit our members, our employees, and the communities we serve here in northwest Iowa,” said Jim Franzmeier, Board Chair for Alceco.
A statement by the two co-ops said the merger study had identified “increased opportunities for the future of both organizations.” The combined cooperative would have 32 grain and agronomy facilities in Iowa, with home offices in Cherokee and Albert City.
“This is a merger of equals,” stated Charles Specketer, Board President of FCA. “By joining together, we will become the leading cooperative in northwest Iowa, which provides significant advantages to our members. This merger will also enable enhanced benefits for employees, expand employee growth and development, and help recruit and retain the best and brightest team right here in our area.”
Members will now receive information by mail describing the voting process, with a final decision on the merger anticipated by the end of June 2021. The boards also announced that Troy Upah, current Alceco CEO, will serve as CEO of the combined organization, with Merle Lyons, FCA General Manager, serving as Chief Operating Officer (COO).
Alceco, which stands for Albert City Elevator Cooperative, was formed in 1905 but grew over the decades through multiple expansions and acquisitions, including a merger in 2008 with Midwest Farmers Cooperative.
Alceco partnered with Cargill in 1997 to form Ag Partners LLC, a joint venture that provides grain, agronomy, feed, and petroleum products and services from 17 retail and wholesale locations in Iowa. Ag Partners now operates as a solely-owned subsidiary of Alceco after the company announced last summer that it had acquired full ownership from Cargill (GM July 31, 2020).
FCA provides agronomy, energy, grain, and feed products and services from 20 locations in northwestern Iowa, with a staff of 182 full-time and more than 40 part-time employees. The company is recognized as the oldest continuously active cooperative elevator in the nation, tracing its roots to 1887, when Farmers Cooperative Elevator of Marcus, Iowa, was incorporated.
FCA was formed under its present name in 1997 through the merger of four Iowa cooperatives – Farmers Cooperative Association in Marathon, Agland Coop in Alta, Farmers Cooperative in Aurelia, and Farmers Cooperative in Cleghorn.
Last month, FCA also announced that it had signed a purchase agreement to acquire the seed, crop protection, and commercial fertilizer business of Farm Nutrients LLC and its agronomy center in Rembrandt, Iowa (GM April 2, p. 1). Farm Nutrients is owned by Rembrandt Enterprises Inc., Spirit Lake, Iowa, which will retain the chicken litter management and spreading portion of the business.