Alceco, FCA members to vote on merger

A regional farmers' cooperative with locations in Hartley and Royal is pursuing a merger with another northwest Iowa-based ag company.

The boards of directors of First Cooperative Association (FCA) and Alceco voted unanimously April 14 to proceed to the next phase of a proposed merger. The combined boards in December voted to undertake a study to determine if a consolidation offered increased opportunities for the future of both organizations. The results were promising, according to a news release, and both boards agreed to proceed.

A membership vote will be held to determine the fate of the merger by the end of June 2021.

"The farmer members who make up the Alceco and FCA boards agreed that the benefits of a new, combined organization retaining local management and local board representation is the best path forward to support the continued success of our cooperative to benefit our members, our employees and the communities we serve here in northwest Iowa," said Jim Franzmeier, board chair for Alceco.

Through its solely owned subsidiary, Ag Partners, LLC, Alceco operates 17 locations across the region including sites in Hartley, Sheldon, Calumet and Sutherland in O'Brien County and Royal in Clay County. The cooperative is headquartered in Albert City.

FCA, based in Cherokee, is recognized as the oldest continuously active cooperative elevator in the nation. It has 20 locations in northwest Iowa, including sites in Granville and Paullina in O'Brien County and Peterson in Clay County.

FCA board President Charles Specketer called the proposed consolidation "a merger of equals."

"By joining together, we will become the leading cooperative in northwest Iowa, which provides significant advantages to our members," he said. "This merger will also enable enhanced benefits for employees, expand employee growth and development, and help recruit and retain the best and brightest team right here in our area."

The future leadership structure of the newly-formed cooperative has already been decided, should members approve the merger.

Current Alceco CEO Troy Upah was given the same title of the combined organization and FCA general manager Merle Lyons was appointed as chief operating officer, focusing on the 32 grain and agronomy facilities. While the legal entity will be in Cherokee, the combined organization will maintain home offices both there and in Albert City in consideration of office space requirements and employee locations.

Members will receive information describing the voting process via mail soon, according to the news release.