October Joint Statement
Farmers Win Cooperative & Five Star Cooperative Merger Vote Concludes
Both Boards of Directors have decided to end the process after missing success in the member vote.
New Hampton, Ia., Nov. 1, 2021 –Boards of Directors for Farmers Win and Five Star have agreed to no longer proceed with unifying the cooperatives after two voting periods. Iowa Law requires that both cooperatives must each achieve a 50%+1 quorum and then reach a 2/3rds majority to approve merging. Five Star Cooperative found success in the first voting period by exceeding both thresholds and did not have to vote a second time. Farmers Win narrowly missed the second threshold in the first voting period and sent it back to their members for a revote which recently concluded. Although the 50%+1 threshold was exceeded in the revote, the approval rating did not reach the 2/3rds majority.
“We are appreciative of the employees who gave their valuable time to this process. From management to our location teams, all participated in presenting this opportunity to our membership.” shares Dwane Koch, Farmers Win Board President. “As a cooperative board of director member, it is our responsibility to do what is best for the entire membership. Even though we did not reach the approval rating we had wanted, the members’ voices have been heard.”
Both cooperatives will continue to operate independently of each other and strive for the highest level of member service. The management and employee teams will continue identifying new offerings and opportunities for growth.
“We’ve reached a pivotal point for our cooperatives and are thankful for those members who took the time to return their ballots. Participation is a huge part of the process, whether attending a meeting or just calling a director with questions,” discusses Tom Shatek, Five Star Board President. “Even though this rare opportunity has been missed, your Board of Directors and employee team will continue to be focused on the meeting the members’ needs and continuing to strengthen the relationship you have with your cooperative.”
Farmers Win Cooperative and Five Star Cooperative each have strong financial positions and will continue to create value for their member-owners. Both cooperatives are thankful for their employee teams, membership bases and Boards of Directors for the time given during this process.
August Joint Statement
On Friday, August 20th, the results of Farmers Win-Five Star proposed merger vote were read to each board in their respective Special Meetings.
Both cooperative’s hit the 50% threshold. Five Star achieved an approval rating satisfactory to Iowa code to pass the vote. Farmers Win narrowly missed the 2/3rds majority. There will be more information sent to members this week.