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elcheapo
Senior Advisor

Here we go again.....coop wants to merge

well the board has meet with the board of another coop, and they both feel it would be good to merge...........

seems like both coops have dingbats on their boards.....

The office would be moved 125 miles away, in another state.  The other coop is mainly in corn country, we are

more into wheat and milo....

They claim more savings........oh really ?  I called the other coop and got some quotes from them on products, no

cheaper than what we are doing, and neither are issuing very much for dividends......rather they are "growing"

and using it for building and buying....both coops.

it will require a super majority, of 66%........people don't think it will pass......I think it will, too many people too

easy talked into it.  then many don't understand, the board says its good, I know the board man, he's a good man

so i'll vote for it..........

 

I just wonder if basis will go down more !

seems every time we expand, our basis is worse, and they keep telling us it will be cost saving........

 

 

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5 Replies
BA Deere
Honored Advisor

Re: Here we go again.....coop wants to merge

Yep, they`ll talk about the overlap of terragators in the area and a merger will result in the bigger coop getting rid of a couple machines and a few employees.  They`ll talk about the large grain selling volume will generate better bids and cheaper inputs purchases.  You`ll vote for board members from 2 counties away that you`ve never heard from.

 

The president and CEOs like it because they`ll be kingfishers in a bigger pond and need to be compensated accordingly$$$$$

 

All that good stuff and yet the successful Bigshot farmers will continue to avoid the coops like the plague doing their buying and selling directly, cutting out that middleman or some because of their size, will haggle a sweetheart deal with the manager.

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Blacksandfarmer
Senior Advisor

Re: Here we go again.....coop wants to merge

Cheapo, if you don't like the way business is done at the co-op, go somewhere else. In our area we have North Central co-op. They are decent to do business with I suppose, but their prices on fertilizer and spreader rental is always higher than the local elevators, and they don't take grain. Shop around a little, let it be known that you can take you're business elsewhere. Best of luck! 

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JimMeade
Veteran Advisor

Re: Here we go again.....coop wants to merge

Coops may have had their day.  I do almost no business with mine, except for energy where they are competitive.

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hardwayfarmer
Veteran Contributor

Re: Here we go again.....coop wants to merge

And North Central is in the  process of merging with another coop mainly along the west side of Indiana, to be known jointly as Ceres Solutions.  The same familiar reasons are being given.  I've had a saying for years:  "The bigger the organization gets and the farther away from home it gets, the less responsive it is to local needs."  Applies to any type of organization, coop, school districts, machinery dealerships, you name it.

k-289
Esteemed Advisor

Re: Here we go again.....coop wants to merge

Bullseye   -  hardway you nailed it

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