Members of Northern Country Cooperative in Stacyville, Iowa, and Viafield in Charles City, Iowa, have voted in favor of a proposed merger, according to a Sept. 13 announcement from both cooperatives. The combined cooperative will have staff of more than 270 serving some 4,700 farmer members across 16 counties in southern Minnesota and northern Iowa.
The proposed merger was first announced in July, when the boards of both co-ops sent letters to members stating that a unification study had determined that a merger would allow for optimal growth and opportunities. The two businesses have shared some agronomy resources and operations for more than two years, though the boards said there is “little to no” overlap of trade territories.
Actual voting results were not disclosed, but the board announcement said the member ballot return exceeded the Iowa requirement and overall approval votes met the two-thirds threshold for the merger to pass.
The name of the combined company has not yet been announced, but the unified business will take effect on Feb. 1, 2024, with corporate offices continuing to be based in both Stacyville and Charles City. Jason Schwenneker, current Northern Country CEO, will serve as the new co-op’s CEO, while Derrick Davis, current Viafield CEO, will serve as Chief Operating Officer.
“This merger is truly the best path forward for our respective cooperatives, employees, and communities,” Schwenneker said. “We will be best positioned in size and scale to continue serving the expanding needs of our customers today and those in next generations. That is truly something we all can be proud of.”
The new board will consist of 12 directors, with six appointed from each co-op. The equity that members currently hold will be honored dollar-for-dollar in the new cooperative. No significant changes to operations or employees are planned as a result of the merger.
Northern Country currently has 2,200 farmer members, 130 employees, and 13 locations in northern Iowa and southern Minnesota, with operations in grain marketing, storage, and drying; fertilizer and chemical sales; feed manufacturing; and lumber sales. The company in July celebrated the grand opening of a new agronomy service center in Stacyville.
Viafield operates agronomy, energy, feed, and grain businesses from 14 locations in northern Iowa and one in southern Minnesota. The company was formed in 2010 through the merger of Farmers Cooperative, Northeast Iowa Cooperative, and Progressive Ag Cooperative, and currently has 2,500 farmer members and 140 employees.
“We are grateful for the trust our fellow members showed in this merger vote, said Dave Huper, Northern Country Board President. “It is through that active member ownership that we will be able to further strengthen the services and resources for our farmer-owners.”
“Our boards pursued this unification with consideration of mutually sound financial standings and individual strengths that we recognized would bring increased value to our neighbor farmers,” said Steve Fullerton, Viafield Board President.