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Honored Advisor

Re: More Elevator Merger Talk

That`s exactly right, the 3 location well run elevator is on rail but for many years didn`t need it as they are hooked up with feed mills and have an excellent grain bids.  I think they are ripe for a "hostile takeover".

 

5 Star had been in good shape early on, but were hit hard with the hedge-to-arrive debacle in the mid-90`s and the last cases were cleaned up not all that long ago. Their problems can be laid at the feet of one very stubborn unpopular farmer that basically broke them...but I will say this, the old orginal coop paid me back every penny of my share, it took 15 years, but I did get paid.  So to survive they went from "3 star" to 5 Star...5 Star is actually about 40 Star, but still called "5 Star".  They approved a merger with Viafield, but Viafield didn`t want us  Smiley Happy  I wasn`t going to vote until, they called and said they hadn`t recieved my vote, so I voted...."No"  Smiley Happy

 

Dividends are a joke, yeah it`s nice to get a check when you`re low on cash in late summer, but you end up paying it all in taxes anyway.  Dividends very year to year, probably a nickel on grain you sell, 2¢ on fuel and such.  Like that Gold Eagle coop advertising they pay $69/acre if you had did all your business with them.  Well, maybe next year it won`t be that amount, they`ll retain to dividends to build a bin or buy pickups  Smiley Happy

 

But when these coops run ads on the radio and send out 10 page glossy brouchures to "vote yes' on the merger and I don`t imagine those on the board are using their own money to fund this campaign, the member`s own money is being used to convince them to vote for it.

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Advisor

Re: More Elevator Merger Talk

There is a spectacularly successful co-op in SC MN that came together as the result of a relatively small farmers (Farmer's Union, if you would) cooperative picking up a number of well located but lightly capitalized privates.

 

The conventional wisdom as to it's comparative success is that it has never been in the grain or feed business.

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Advisor

Re: More Elevator Merger Talk

Supply business is a lot more stable, for sure.

 

Are they affiliated with a national (what we used to call regionals)?

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Advisor

Re: More Elevator Merger Talk

CHS (again, that gang of Marxists, The Farmers Union).  Benefit greatly from having avoided affiliation with L o ' L and the black hole in Kansas City and their forays into livestock integration and product branding.

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