By Andi Anderson
AgVantage FS, based in Waverly, IA, and Nexus Cooperative, located in Charles City, IA, have agreed to trade certain assets to enhance their operational efficiencies.
Nexus will acquire the grain assets in Aplington, Chapin, and Dewar, Iowa, from AgVantage FS. In return, AgVantage FS will gain the agronomy assets in Elgin, Lamont, and Randalia, Iowa, from Nexus.
This decision followed extensive discussions on how each cooperative could better utilize their facilities, staff, and resources to benefit their members.
“We believe this asset exchange is a better strategic fit for both cooperatives,” said Jason Schwenneker, CEO of Nexus. “Every day we work to do what’s right for our employees and producers for the long term and this exchange will enable more investment and enhanced services to area producers going forward.”
Leaders from both companies are finalizing details for the transition, which is expected to occur in early August.
“Every decision we make is with the benefit of our members in mind. By focusing on our strengths in the agronomic services area, the facilities and equipment we’ll gain in this agreement will position us for long-term growth,” said Matt Kruse, Retail Division Manager for AgVantage FS. “This partnership demonstrates our desire to partner with organizations that align with our principles and create tangible benefits that will benefit the members we serve.”
Both companies are committed to ensuring there are no disruptions to farmer service during the transition.
Nexus will honor all grain contracts at any of the AgVantage locations, while AgVantage will honor and service any agronomy customer contracts at the Nexus locations. This change in asset ownership will not affect farmer equity in either cooperative.
Farmers are encouraged to continue communicating with their respective locations throughout the transition to address any questions they may have.
Photo Credit: gettyimages-zoran-zeremski
Categories: Iowa, Business