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Members of the farmer-owned Central Valley Ag could be seeing some major changes in the future if a potential merger is approved.
In a press release sent out on Friday, it was announced that a merger of the York-based cooperative with a Beloit, Kans. based cooperative is nearing the final steps.
After a review of a recently completed merger study, the Board of Directors of Farmway Co-op, Inc. (Farmway) and Central Valley Ag (CVA) both unanimously approved the next step in a merger of the two cooperatives. The merger proposal will now be presented to Farmway members for a vote.
"By combining two strong financially-stable cooperatives in a merger, a unified cooperative would provide the opportunity for expanded services and facilities, increased savings and accelerated equity redemptions for the benefit of our member-owners," said Tim Porter, Farmway Board Chairman. "The Board of Directors asks for member-owner support by voting yes to the unification."
"The results of the merger study were conclusive and both Boards felt strongly in proceeding with a merger of CVA and Farmway," said Dave Beckman, Chairman of the Board for Central Valley Ag. "The study outlined benefits in terms of improved efficiencies and cost savings, which we will feel bring additional value to members of both cooperatives."
Initial merger discussions between the cooperatives began in January 2017, with the respective boards meeting in April to unanimously approve an Agreement and Plan of Merger. Farmway will host area informational meetings throughout May starting with the Farmway Annual Meeting on May 4 so members can better understand the results of the recently completed merger study and ask questions regarding the proposed merger. Shortly thereafter, Farmway will hold a series of voting meetings for the Farmway membership to vote regarding the merger. Farmway voting members are highly encouraged to attend these meetings and vote.
For the merger to be finalized, Farmway members must approve by a super majority, which is defined as 66%.
Many local farmers are familiar with CVA. The cooperative is considered an innovative leader in providing products and services in grain, agronomy, feed and energy to it's members.
Farmway is a Beloit, Kans. based cooperative. It has 37 facilities across nine counties in North Central Kansas, offering energy, agronomy, feed and grain solutions.