Co-op proposal headed to member vote
MaxYield Co-op, NEW Co-op merger proposed
WEST BEND — MaxYield Cooperative’s board of directors recently announced that the merger proposal between MaxYield and NEW Cooperative, Inc., headquartered in Fort Dodge, will proceed to a member vote in June.
Howard Haas, chairman of MaxYield’s board, said that 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 combined and more diverse cooperative business platform 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. This has been a major focus of unification discussions and are just a few of the real benefits our members would see,” Haas said.
There are several other benefits to a potential merger with NEW Co-op the MaxYield board identified.
“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. NEW’s Port of Blencoe project would also provide improved crop nutrient sourcing,” added Haas.
A combined organization will have the balance sheet and fiscal strength to capitalize on opportunities for members and have long-term staying power in the industry. It would also allow an accelerated schedule for facility, rolling stock and equipment upgrades across MaxYield’s trade area, he added.
NEW Co-op will continue to operate MaxYield’s Garner and Britt feed mills after the potential merger. 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.
Efforts will now move forward to finalize the terms of a merger agreement between the two cooperatives. 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 of July 2, 2021.
If approved, the merger would become effective Aug. 1, 2021.
More detailed information about the merger proposal will be sent to MaxYield’s members soon.
Haas added. “We look forward to discussing this opportunity with our members at the informational meetings across our trade area in June. We’ll announce those dates soon.”