Farm Supply Company and Grange Cooperative Supply Association announced Monday that their boards approved a proposed merger that would unite the two agricultural cooperatives serving farmers, ranchers and rural communities across California and Oregon.
The Farm Supply Company Board of Directors unanimously recommended the merger, citing long-term benefits including expanded product offerings and strengthened operational capabilities. The combined cooperative is expected to improve procurement efficiency, increase geographic reach and reduce exposure to regional market and weather volatility through greater diversification.
"This will be a bold new chapter for Farm Supply which will ensure longevity and sustainability," said Michael Mendes, CEO of Farm Supply Company. "It will also be a financially positive transaction from day one."
The proposed merger would increase purchasing power by combining procurement volumes, allowing the organization to secure more competitive pricing and improve product availability. Members would benefit from improved cost efficiencies and access to expanded product lines.
Grange Co-op's vertically integrated feed operations and manufacturing capabilities would strengthen Farm Supply in the feed category, which represents more than 20% of sales.
Farm Supply Company stores will continue operating under their current banner. The new combined company would consist of 13 retail stores — seven in California and six in Oregon — with approximately 450 employees.
"We share the same high ethical standards and are well known for exceptional customer service," said Jim Brabeck, former Farm Supply CEO and current board member.
Farm Supply Company is providing shareholders with detailed information and ballots. Pending member approval, the merger is targeted to become effective Oct. 1.
