Two Iowa Agricultural Cooperatives Will 'Swap'

WAVERLY and CHARLES CITY, Iowa — AgVantage FS in Waverly, Iowa and Nexus Cooperative in Charles City, Iowa have reached an agreement whereby Nexus will acquire the Aplington, Chapin, and Dewar, Iowa, grain assets from AgVantage FS, and AgVantage FS will acquire the Elgin, Lamont, and Randalia, Iowa, 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. "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 within both companies are finalizing details for an early August transition of ownership. "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 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. Farmers can continue to communicate with their location through this transition to assist with any questions. Knowledge is power! Stay empowered by subscribing to the free newsletter, packed with valuable insights, stories of local newsmakers and ideas to get your weekend started.