Members OK Alceco, FCA merger
Move is hoped to increase future opportunities for new co-op
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SENTINEL-NEWS FILE PHOTO
Ag Partners' elevator in Hartley looms in the distance as a combine harvests a field north of town in late October of 2016.
A farmers cooperative with locations in Hartley and Royal will see its territory expand significantly later this summer.
Members of Alceco voted on July 1 to merge with First Cooperative Association (FCA) effective Sept. 1. The merger process began in December 2020, with the boards of both cooperatives commissioning a unification study to examine the synergies between the organizations and make recommendations on a potential union. The combined boards voted unanimously in April 2021 to move forward with a vote by the Alceco members.
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.
"This is an exciting time for our cooperatives and for farmers in northwest Iowa," Ag Partners CEO Troy Upah said in a news release. "As our industry continues to change at a rapid pace, it is important to keep moving forward with those changes. Through this merger, we will be able to continue to meet the needs of our members and area growers now and well into the future."
The boards have named Upah CEO of the combined organization. Merle Lyons, current FCA general manager, was named chief operating officer focusing on the 32 grain and agronomy facilities.
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.
"By joining together, the new organization will be one of the leading cooperatives in the region with local management and local board representation," said Chuck Specketer, FCA board president.
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.
"We are pleased the Alceco members recognized the many benefits this merger will offer, first and foremost to members of both cooperatives, but also to both employee teams and the communities we serve in northwest Iowa," said Jim Franzmeier, board chair for Alceco.
