TRUMAN?- WFS of Truman and Central Valley Cooperative of Owatonna have announced that voting members of both cooperatives have approved a merger plan.

The merger will go into effect March 1, and the new company will be named Central Farm Service.

WFS CEO Todd Ludwig will take the reins as CEO of the new company, while CVC CEO Gary Mohr will become the chief administrative officer.

Administrative offices in both Owatonna and Truman will remain open.

“With this positive vote, our memberships have created a long-term, viable local cooperative that will thrive in the decades ahead,” stated WFS board chairman Charlie Johnson. “While we projected $5 million to $7 million in tangible benefits to our members in our proposal, I think the intangible benefits may be even greater.”

Intangible benefits identified in the merger proposal included: employee opportunity and retention, geographic diversity, and maintaining member control.

“Growth is a large component of success,” added Eric Schrader, CVC board chairman. “We believe that the unified cooperative will be a survivor and we feel fortunate to have had the opportunity to bring these two strong cooperatives together.”

Under the merger, equity held by both memberships will transfer dollar for dollar, and all existing equity is intended to be retired under the current practices of each co-op. Equity earned in the new co-op will be retired on years earned.

There will be equal representation from each of the former co-ops, with six directors from each board.

Projected annual sales of the new cooperative is expected to exceed $600 million with a diversified product and service line that includes: grain marketing and merchandising; crop production, seed and precision ag; bagged feed and bulk feed manufacturing; bulk energy delivery and storage; and producer financing.

The newly merged cooperative, Central Farm Service, will service a trade area that is about 110 miles north and south from Randolph, Minnesota, into Iowa and 125 miles east and west from Hayfield to Welcome, Minnesota. The two companies currently cover a trade area that is adjacent to each other, but do not operate facilities in the same communities.

Central Valley Cooperative had revenues of more than $258 million last year, with 180 full-time and more than 65 seasonal employees.

WFS had sales of more than $359 million in 2015. It employs 230 full- and part-time employees.