Central Valley Co-op and WFS Merging

Earlier this week I received an announcement from the Central Valley Co-op, based in Owatonna, that they may be merging with WFS, based in Truman. The boards of both co-ops voted unanimously to merge. However, the final decision will be with the members of the two co-ops. Members of Central Valley Co-op and WFS must approve the merger by a two-thirds majority. I was not really surprised at the announcement as I knew both boards had been exploring a merger. In addition, the two co-ops have worked together on a number of business adventures. For example, together they built that huge urea fertilizer storage building in Clarks Grove.

Farmers today put a lot of demands on co-ops: precision applications of fertilizer, custom application of pesticides, seed, agronomy services, propane, diesel fuel to grain handling. It takes a lot of equipment and people. Plus that equipment represents a lot of money or investment. Many times in a merger there ends up being closures of some facilities. Todd Ludwig, CEM of WFS, said that would not happen because there are no "duplication of facilities." WFS does not compete with Central Valley in any communities. Informational meetings will be held and members will vote later this year. If the merger is approved by the members, the new name of the co-op will be Central Farm Services or CFS.