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Merging of Three Minnesota Grain Co-operatives Advances

In mid-December the Boards of Directors of Central Farm Service, River Region Cooperative, and South Central Grain and Energy approved the merging of the three businesses into one company.

Central Farm Service provides grain, energy, agronomy and feed services to farmers in the south-central Minnesota and northern Iowa corridor.

River Region Cooperative was founded in 1890 and provides customers with grain, energy, agronomy, and feed services, while South Central Grain and Energy is a full-service cooperative with seven locations offering farmers services in grain, agronomy, energy and feed.

The move has been driven by the combination of a global collapse of commodity prices, market volatility, a more stringent regulatory atmosphere, and a general increase in cost of operating.

The merger, which was first conceived in September 2016, will now be subject to a member vote which will take place on February 21, and which will have a possible effective date either on or before August 1.

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