Another step to merge two of the largest agricultural cooperatives was taken earlier this week.

The Boards of Directors for West Central Cooperative and Farmers Cooperative Company unanimously approved to proceed with the merger and bring it to a vote by their respective memberships.

The announcement comes after the two businesses first started negotiations about a potential merger in August.  Since then, internal and independent analysis of potential risks and benefits were conducted with both Boards recommending to push forward with the next step in the process of merging together.

West Central Chief Executive Officer and President Milan Kucerak says by combining the cooperatives, it will put them in better position to weather market volatility, access global markets directly and offer more for its owners, while also providing branded seed, faster grain assets and value-added corn or soybean processing.

Iowa law requires 50 percent of each membership to vote, with two-thirds of the votes being in favor of the proposal.  Ballots and voting details will be mailed to all members by November 20th.  The votes will then be tallied at a special meeting on December 18th.  Members are encouraged to attend one or more of the 20 informational meetings scheduled from November 30th through December 11th.  A list of when those meetings happen can be found by clicking on the links: wccgrow15.com or fcgrow15.com.

Should the membership approve the merger, each cooperative will be represented by nine farmer-owners and member equity will roll into the new cooperative on a one-for-one basis. The combined cooperative, to be headquartered in Ames, Iowa, will be led by Kucerak as chief executive officer.

 Last fiscal year, Farmers Cooperative agronomy, grain and feed businesses grossed $675 million in sales and $292 million in assets.  There are 414 full-time employees at 49 locations.  West Central’s agronomy, grain, feed and dairy nutrition operations grossed $633 million and $300 million in assets its last full fiscal year.  They have 275 full-time employees in 24 communities.