New name to be CFS (Central Farm Service)
WFS (Watonwan Farm Service) and Central Valley Cooperative (CVC) will be merging by a vote of the members of the each cooperative. That merger will go into effect on March 1, 2016. The newly-unified company will be named CFS (Central Farm Service).
WFS Chief Executive Officer (CEO) Todd Ludwig will take the reins as CEO of the new company, while CVC CEO, Gary Mohr, will become the Chief Administrative Officer. As stated in the merger proposal documents, both administrative offices – in Owatonna and Truman – will remain open in order to serve members’ needs.
The plan was first announced to the respective memberships in a letter on October 14. Following harvest, informational meetings were held and ballots, along with additional information, were mailed to voting members on December 2, with a due date of December 21.
As stated in the Plan of Merger documents, equity held by both memberships will transfer dollar-for-dollar, and all existing equity is intended to be retired under the current practices of each co-op. Equity earned in the new co-op will be retired on years earned. There will also be equal representation from each of the former co-ops, with six directors from each board.
The projected annual sales of the combined cooperative is expected to exceed $600 million with a diversified product and service line that includes grain marketing and merchandising; crop production, seed, and precision ag; bagged feed and bulk feed manufacturing; bulk energy delivery and storage and producer financing.
CFS will service a trade area that is approximately 110 miles north and south from Randolph into Iowa, and 125 miles east and west from Hayfield to Welcome. The two companies currently cover a trade area that is adjacent to each other, but do not operate facilities in the same communities.
