Two Iowa ag cooperatives will swap locations, but say farmers will see no change in service

Two Iowa agricultural cooperatives are swapping locations, but the businesses said Wednesday the move won’t impact services to farmers.

AgVantage FS, based in Waverly, says it’s buying Nexus Cooperative’s agronomy assets in Elgin, Lamont and Randalia, all of which are in northeast Iowa.

Charles City-based Nexus says that in turn, it will buy AgVantage’s grain assets in Aplington, Chapin and Dewar.

Aplington and Chapin are in north central Iowa, while Dewar is near Waterloo.

The co-ops declined Wednesday to provide financial details of the deal. They say the asset exchange follows extensive discussion between them around “how each could better utilize their facilities, staff and other resources” to serve their members.

“We believe this asset exchange is a better strategic fit for both cooperatives,” Nexus CEO Jason Schwenneker said in a statement.

The companies are finalizing details, with plans to transition ownership in early August.

No jobs will be lost due to the swap, they said Wednesday, adding that they'll work together to ensure services to farmers aren't disrupted.

“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,” Matt Kruse, AdVantage FS’s retail division manager, said in a statement.

Nexus said it will honor all grain contracts at the AgVantage locations. And AgVantage will honor any agronomy customer contracts at the Nexus elevators.

The asset exchange will not impact farmer equity in either cooperative, the businesses say.

Nexus Cooperative, with about 4,500 member-owners, operates across northern Iowa and southern Minnesota and employs about 250 people.

AgVantage FS, a retail division of GROWMARK Inc., provides ag and energy products to members in 34 counties in Iowa and Minnesota. GROWMARK, a Bloomington, Illinois, ag cooperative, serves almost 400,000 customers across North America.

Donnelle Eller covers agriculture, the environment and energy for the Register. Reach her at deller@registermedia.com or 515-284-8457.