Recently, MaxYield’s voting members were mailed an update regarding merger discussions between MaxYield and NEW Co-op, Inc. Boards of both cooperative’s have approved moving forward with the merger proposal…
April 8, 2021
Dear MaxYield Cooperative Voting Members:
This letter is to inform you of the continued efforts to explore the possibility of our cooperative unifying with NEW Cooperative, Inc. Last week, the boards of directors of MaxYield and NEW Co-op met separately and each board voted in favor of proceeding with the merger proposal.
This board vote followed presentations by and discussions with senior team members of each organization with their respective board of directors. These senior team members were the participants in the many meetings that took place in February and March between both cooperative’s personnel in all operational areas.
The substantial income enhancements, cost savings, and broader service offerings generated from the larger and more diverse cooperative business platform were highlighted in the presentations. The resulting increase to patronage earnings available to members using the new combined cooperative, as well as greatly improved cash flow that will accelerate the redemption and retirement of MaxYield allocated equity capital earned in prior years was also a major focus of the discussions.
Other identified benefits of this potential unification include:
- Additional grain marketing and feed manufacturing opportunities.
- The CN and BN rail markets will enhance grain marketing and fertilizer sourcing opportunities.
- NEW’s Port of Blencoe will provide improved crop nutrient sourcing for members.
- Accelerated facility, rolling stock and equipment upgrades and improvements.
- A combined organization will have the balance sheet and fiscal strength to capitalize on opportunities for members and have long-term staying power in the industry.
- All full-time MaxYield team members will be offered jobs with NEW Co-op. You will work with the same great team members that you work with today.
- NEW Co-op will continue to operate both our Garner and Britt feed mills following a unification.
- Following a unification, NEW Co-op will continue the use of the SciMax Solutions brand as the grower learning group platform for advanced data management alongside NEW’s MAPS brand. Both brands will assist with the variable rate and grid soil sampling offerings.
- The harvest on-farm grain pick up service continues at least for the Fall of 2021 and will be reevaluated prior to the Fall of 2022.
Efforts will now move forward to finalize the terms of a merger agreement. We will schedule member informational meetings for early June. A membership vote will occur with merger plans and ballots sent out to all eligible voting members by mid-June with a planned final vote count of July 2, 2021. If approved, the merger would become effective August 1, 2021.
We encourage members to contact their local MaxYield director with questions. Their contact information is below. You may also contact any MaxYield location with questions. Contact information for each MaxYield location can be found at www.maxyieldcoop.com/contact.
Howard Haas, Algona: 515-341-7993
David Garrelts, Emmetsburg: 712-260-2408
Eric Marchand, Britt: 641-843-8231
Barry Anderson, Greenville: 712-260-3802
James Black, Algona: 515-341-7858
Greg Guenther, Algona: 319-333-8710
Don Hejlik, Britt: 641-860-0324
Ron Rouse, Curlew: 712-298-0477
Don Salton, Dickens: 712-260-9002
Thank you for your support of MaxYield Cooperative. We look forward to visiting with you at one of the June member information meetings.
Howard Haas Keith Heim
Board Chairman Chief Executive Officer