MaxYield, NEW Co-op look to merge

Another change in the local ag market could be on the horizon if members of two Iowa cooperatives approve a proposed merger.

The separate boards of directors of MaxYield Cooperative and NEW Cooperative announced this month both entities will proceed to a member vote on a merger in June. According to a news release, directors of both co-ops met individually at the end of March, with each board voting in favor of proceeding with the merger proposal.

MaxYield, based in West Bend, has locations in Everly, Spencer, Greenville, Fostoria and Dickens in Clay County, and Milford and Superior in Dickinson County. Howard Haas, chairman of MaxYield's board, said income enhancements, cost savings and broader service offerings generated from the combined cooperatives' business platform were intriguing.

"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," he said. "This has been a major focus of unification discussions and are just a few of the real benefits our members would see."

MaxYield has had a presence in Everly since April of 2016, when it acquired the local grain elevator from The Andersons, Inc. The cooperative's territory spans as far east as Waverly.

Other benefits to a potential merger between NEW Co-op and MaxYield include additional grain marketing and feed manufacturing opportunities, as well as access to the Canadian National and Burlington Northern rail markets.

"[These] will enhance grain marketing and fertilizer sourcing opportunities for members," Haas said. "NEW's Port of Blencoe project would also provide improved crop nutrient sourcing."

According to a report in the Sioux City Journal, NEW Cooperative's Port of Blencoe is an $11 million project being built about two miles west of the small Monona County town of Blencoe on the Missouri River. Once open, it will become the northernmost port on the nearly 760-mile span of the Missouri from St. Louis to Sioux City.

Haas said 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. He added it would also allow an accelerated schedule for facility, rolling stock and equipment upgrades across MaxYield's trade area.

According to the news release, 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.

All full-time MaxYield team members will be offered jobs with NEW Co-op if the merger is approved.

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, with official dates to be announced soon.

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.

"We look forward to discussing this opportunity with our members at the informational meetings across our trade area in June," Haas said.

NEW Cooperative is headquartered in Fort Dodge. It is a farmer-owned grain, agronomy, feed and energy cooperative with 39 locations serving 5,500 member-owners throughout western and northwest Iowa. MaxYield has 25 locations and three Cenex convenience stores in Iowa.