Iowa Coops Alceco and First Cooperative Association Vote to Pursue Merger

The boards of directors of First Cooperative Association (FCA), Cherokee, Iowa, and Alceco, Albert City, Iowa, voted unanimously to move forward to the next phase of a proposed merger of the two cooperatives.

The decision was reached during a joint meeting of the boards on Wednesday, April 14.

“The farmer members who make up the Alceco and FCA boards agreed that the benefits of a new, combined organization retaining local management and local board representation is the best path forward to support the continued success of our cooperative to benefit our members, our employees and the communities we serve here in northwest Iowa,” said Jim Franzmeier, board chair for Alceco.

In December 2020, the combined boards voted to undertake a study to determine if a merger offered increased opportunities for the future of both organizations.

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Upon reviewing the study results, both boards voted to continue with the due diligence, which culminated with the boards decision to merge, followed by a membership vote.

“This is a merger of equals,” stated Charles Specketer, board president of FCA. “By joining together, we will become the leading cooperative in northwest Iowa, which provides significant advantages to our members.

This merger will also enable enhanced benefits for employees, expand employee growth and development, and help recruit and retain the best and brightest team right here in our area.”

Members will receive information describing the voting process via mail.

A final decision on the merger is anticipated by the end of June 2021.

Leadership Announced

The boards named Troy Upah, current Alceco Chief Executive Officer (CEO), as CEO of the combined organization, and Merle Lyons, FCA general manager, was appointed the role of Chief Operating Officer (COO) focusing on the 32 grain and agronomy facilities.

While the legal entity will be in Cherokee, the combined organization will maintain home offices both there and in Albert City in consideration of office space requirements and employee locations.