The Board of Directors of MaxYield Cooperative, West Bend, Iowa, announced that a proposed merger with NEW Cooperative Ind., Fort Dodge, Iowa, will now proceed to a member vote in June. The two Iowa co-ops announced in February that a unification study had been initiated (GM Feb. 19, p. 1) after initial overtures were made in December 2020.
Howard Haas, Chairman of MaxYield’s board, said the directors of MaxYield and NEW Co-op met individually at the end of March and each board voted in favor of proceeding with the merger proposal. Substantial income enhancements, cost savings, and broader service offerings generated from the merger were highlighted in the presentations at the board meetings.
“The increase to patronage earnings available to our members using the combined cooperative, as well as greatly improved cash flow, will accelerate the redemption and retirement of MaxYield allocated equity earned in prior years,” Hass said. “This has been a major focus of unification discussions and are just a few of the real benefits our members would see.”
Haas said a combined organization will also have the balance sheet and fiscal strength to capitalize on opportunities for members, have long-term staying power in the industry, and accelerate a schedule of facility, rolling stock, and equipment upgrades across MaxYield’s trade area.
“We’ve identified additional grain marketing and feed manufacturing opportunities, and access to the Canadian National and Burlington Northern rail markets will enhance grain marketing and fertilizer sourcing opportunities for members,” Haas said. He noted as well that NEW’s Port of Blencoe project on the Missouri River, which began construction last July (GM Aug. 14, 2020), would provide improved crop nutrient sourcing for the combined business.
Haas said member informational meetings will be held in early June. A membership vote will occur with merger plans and ballots sent out to all eligible MaxYield voting members by mid-June with a planned final vote count on July 2, 2021. If approved, the merger would become effective on Aug. 1, 2021.
Under the terms of the proposed merger, NEW Co-op will continue to operate MaxYield’s Garner and Britt feed mills after the unification. NEW Co-op would also continue to offer MaxYield’s SciMax Solutions brand as the grower learning group platform alongside NEW’s MAPS brand. NEW would 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.
“It’s also important to know that all full-time MaxYield team members will be offered jobs with NEW Co-op, so our members and clients will work with the same great team members that they do today,” Haas said.
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.