Landus, a farmer-owned cooperative based in Iowa, is leading a strategy to implement an innovative alternative to traditional mergers and acquisitions for local agricultural cooperatives and independent businesses, optimizing overall performance. It is focused on improving service and competitiveness to drive more value for its collective membership and customers, while maintaining local influence and identity. NuWay-K&H is the first cooperative to collaborate in this innovative, new model.
The benefits of joining a linked set of cooperatives and independents allows each entity to maintain its autonomy, preserve its local community presence, and enhance farmer relationships while participating in a shared platform of strength.
“Locally-based agricultural cooperatives and independent businesses have long played an important role contributing to farmer livelihoods and rural vitality,” said Matt Carstens, President and CEO, Landus. “This strategy of local ag companies collaborating together is designed to modernize and protect the viability of these vital business offerings and services.”
This new model is designed for collaboration and optimization on grain, feed, soybean processing, agronomy, data, technology, logistics, and back-office functions. It also provides the opportunity to maximize capital investments, infrastructure capacity, and employee talent.
NuWay-K&H, serving about 5,500 farm and non-farm customers mainly in southern Minnesota and northern Iowa, will become an optimization account with Landus while continuing to maintain a separate Board of Directors, employees, and operations.
Effective today, April 12, 2021, Kevin Jones, President and CEO of NuWay-K&H, will join Landus as Minnesota Business Unit Leader.
“NuWay-K&H is proactively entering this agreement with Landus to build on our cooperatives’ strengths and stay ahead of the marketplace,” said Kevin Jones. “I’m looking forward to working with the Landus team and continuing my commitment to the success of NuWay-K&H Cooperative customers in my expanded role.”
Financial terms of the agreement are not being disclosed.
As additional cooperatives and businesses join this new optimization model, agreements tailored to the strengths of each party will be developed on a case-by-case basis.