Second attempt Co-ops to try again on merger
Editor's note: The May 9 print edition of this story incorrectly stated Kanza Cooperative general manager Alan Woodard was against the merger. That error was the result of a poorly written paragraph that was meant to attribute that statement to a member opposed to the merger.
This version of the story corrects that error in two ways. First, a statement from Woodard has been added addressing concerns that were raised about the Kanza's finances. Second, the incorrect paragraph in question has been deleted because of concerns about its accuracy.
We apologize for errors. We work to correct information when it needs to be corrected
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Second attempt Co-ops to try again on merger
By Travis Mounts - TSnews
A second vote will be held on a proposed merger between Farmers Cooperative Elevator Company (FCEC), based in Cheney, and Kanza Cooperative, based in Iuka.
A majority of Farmers Cooperative members voted in favor of the merger last month. However, state law requires a two-thirds majority. That failed by one vote.
Kanza Cooperative members did not vote. Because of a size difference between the cooperatives – Kanza Cooperative is about four times the size of Farmers Cooperative – a vote by Kanza Coop members was not required.
The respective board chairs said they pursued a second vote based on the closeness of the initial vote and on feedback from members.
“Our board heard from many members who rely on the co-op to support their farming operations every day. These members spoke about the need for our cooperative to invest in the services and assets critical for their continued success on the farm. They believe a merger with Kanza is the right step to accomplish this,” said Dixie Brewster, board president of Farmers Coop.
Alvin Neville, board chairman of Kanza Coop, said the merger makes sense for both organizations.
“Our people work in some of the same areas and with the same customers every day. When you see our energy trucks passing on the road, you know there is a better way to do this. FCEC has been a great partner throughout our discussions, and we continue to believe that this merger is a great fit for both co-ops,” he said.
Alan Woodard, general manager of Kanza Cooperative, is for the merger. He said both co-ops have been upfront with their financial information, and that there has been incorrect information stated about recent financial information.
“Throughout the merger process both sides have worked to be open and transparent, we have nothing to hide and want members to have the facts. It is incredibly disheartening to see half-truths twisted to the purpose of dissenters and presented as fact. Kanza did suffer a local loss in 2023 of $3 million but our bottom line earnings ended in the positive at just over $2 million. Earning levels did not meet our desire but both cooperatives can be proud to that they succeeded in a difficult grain market where many cooperatives suffered losses. Throughout the merger process, I have been clear and consistent – Kanza is financially sound and this merger is a good thing for both cooperatives.”