A pair of North Iowa agricultural companies are preparing to trade facilities.
AgVantage FS, based in Waverly, and Nexus Cooperative, headquartered in Charles City, have reached an agreement that will see Nexus acquire the Aplington, Chapin, and Dewar grain assets from AgVantage FS. Meanwhile, AgVantage FS will acquire the Elgin, Lamont, and Randalia agronomy assets from Nexus.
This asset exchange follows extensive discussion between the two cooperatives around how each could better utilize their facilities, staff, and other resources to improve operational efficiencies in service to their members.
Jason Schwenneker, CEO of Nexus, said, “We believe this asset exchange is a better strategic fit for both cooperatives. 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.”
Matt Kruse, Retail Division Manager for AgVantage FS, added, “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. 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 will continue to work in close cooperation to ensure there are no disruptions to farmer service during the transition. Nexus will honor all grain contracts at any of the AgVantage locations. AgVantage will honor and service any agronomy customer contracts at the Nexus locations. This change in asset ownership will not impact farmer equity in either cooperative.
The companies are finalizing details for an early August transition of ownership.
