By Howard Haas
MaxYield Board Chairman
Rarely does an opportunity come along that’s a potential “win-win” for everyone. Which is why MaxYield and NEW Cooperative, Inc. explored the benefits of joining together, to provide increased value to both memberships and position our organizations for long-term success.
In mid-April, we announced that the merger proposal between MaxYield and NEW Cooperative is proceeding to a member vote in June. NEW is a well-run, well-respected company. When their board contacted us about a possible merger, we wanted to explore new opportunities that can benefit our members.
One thing became clear early on. The increase to earnings available to our members using the combined cooperative will greatly improve cash flow and accelerate the redemption and retirement of MaxYield allocated equity earned in prior years.
Long before NEW approached us, the MaxYield board often discussed how our co-op could get into an end-user grain business. A potential merger would help capitalize on end-user grain market opportunities in the feed business that we don’t have today. Our members would also gain eight additional truck markets, two additional rail lines and direct access to NEW’s Port of Blencoe located on the Missouri River, which can provide improved crop nutrient sourcing, along with possible additional grain markets.
Additional capital expenditures across all departments are another way MaxYield could bring additional value to our members faster through a merger with NEW Cooperative. NEW is committed to improving and maintaining facilities and rolling stock and has the financial ability to do so. A combined effort would provide opportunities for capital improvements across MaxYield locations at an accelerated pace.
Throughout our history, MaxYield has evolved as an organization by making proactive decisions at the right time. I feel strongly that our members should seriously consider the merger proposal. This could be the right time to make another proactive, strategic decision in the evolution of MaxYield Cooperative.
It’s humbling and challenging to navigate big changes, especially when agriculture is changing rapidly. Iowa agribusiness will look noticeably different in the next five to 10 years than it does today. I encourage you to stay informed, keep an open mind, ask questions at our membership meetings in June and most importantly vote.
For more information, contact one of MaxYield’s directors, your nearest MaxYield location or visit www.maxyieldcoop.com/merger and www.youtube.com/maxyieldcoop. Thank you for your support of MaxYield Cooperative!