Two Nebraska cooperatives – Farmers Cooperative Elevator Company (FCE) in Hemingford and Panhandle Cooperative (PCA) in Scottsbluff – announced in mid-November that their Boards of Directors have signed a letter of intent to explore a unification of the two companies.
“With the changing demands of the economy of scale, both cooperative Boards recognize the potential benefits of unifying their organizations,” the businesses said in a joint statement. “The agricultural landscapes, climates, and needs of each cooperative have some variation, which means the unified cooperative will find creative solutions to serve all members effectively.”
The Boards said the combined co-op will establish specialized divisions in agronomy, grain, livestock feed and management, energy, market analysis, and retail grocery. The Boards are currently working on a new name for the unified cooperative, updated By-Laws, and a Plan for Merger, all of which will be made available to members of both co-ops in early December.
“A merger of the two cooperatives will offer patrons a broader range of services, increased access to markets, and the potential for improved bargaining power, which will lead to mutual growth and strengthen the agricultural industry in the entire region,” the statement said. “These advantages will not stop at the farm gate. The unified cooperative will continue to invest in local infrastructure, educational programs, and social initiatives, enriching the lives of both farmers and non-farming residents alike.”
Informational meetings will be held for members of both co-ops in mid-December, with each holding a special meeting to certify the count of mail-in ballots after the meetings. If approved by each Board and their members, the merger is anticipated to be effective on March 1, 2024.
Farmers Co-op operates grain, agronomy, and feed divisions from Nebraska locations at Gordon, Hay Springs, and Hemingford. The company has 1,675 stockholders. Panhandle Cooperative has agronomy, feed, energy, and grocery divisions at Scottsbluff and Kimball, Neb., as well as a grocery location at Torrington, Wyo.