DES MOINES, IOWA, US — Landus and Heartland Co-op announced Feb. 16 an agreement to swap assets in Iowa following extensive discussions about each cooperative improving operational efficiencies in staff, facility and resource utilization for members served by these locations.
Landus will purchase the Rippey and Panora grain and agronomy assets from Heartland, and Heartland will purchase the Woodward and Earlham grain, agronomy and feed assets from Landus. Financial terms of the agreement were not disclosed.
Matt Carstens, president and chief executive officer of Landus, and Tom Hauschel, CEO of Heartland Co-op, said they are finalizing details for an early March planned transition of ownership of these sites. This move creates better strategic fits for both cooperatives, which in turn will enable improved investment and service to area producers going forward, they said.
During the transition, both companies will ensure no service disruption. All grain contracts to any of these locations will be honored by the incoming company. Pre-pay agronomy business will not be disrupted and will continue to be serviced by the cooperative with which the contract was originally written. The teams also will work to ensure seamless feed service out of the Earlham feed mill as the business transitions to Heartland. Farmer equity in either cooperative is not impacted by this change in asset ownership.
Heartland Co-op, based in West Des Moines, Iowa, US, and Landus, based in Des Moines, Iowa, US, are the No. 9 and 10 largest grain storage companies in North America, according to Sosland Publishing Co.’s 2022 Grain & Milling Annual. Heartland maintains 72 grain storage facilities with a total licensed grain storage capacity of 164.856 million bushels, while Landus has 56 facilities totaling 152.686 million bushels.
To view a slideshow of the Top 10 grain majors in North America, click here.