The boards and membership of AgCentral Farmers Cooperative and Jefferson Farmers Cooperative have agreed to merge the operations of the two Co-ops effective March 1. The merger was approved in December.

The discussions leading up to the merger were driven by the desire of both boards to position the businesses to continue to serve the farmer-owners efficiently and profitably. The combined entity, which will be known as AgCentral Farmers Cooperative, begins operations under the single name on March 1.

“The merger is expected to strengthen the cooperative’s ability to serve its farmer-members in a competitive and rapidly changing marketplace,” says Brent Best, chief executive officer (CEO) of AgCentral. “It also sets the stage for potential future growth as the Co-op system continues to evolve.”

Best will continue in the role of CEO after the merger is complete.

Negotiations regarding this merger have been ongoing since October 2023. All aspects of the businesses were evaluated — the name, the management, the board makeup, and owner equity. The boards of both entities followed a methodical process to unify the two businesses, says AgCentral Farmers Cooperative Board President Jonathon Pierce.

“Both of the Co-ops have similar needs, and the expanded product lines that AgCentral offers — such as the equipment product lines and the feed mill — offer tremendous value to customers,” adds Pierce. “Our membership is made of similar members; there’s a lot of livestock production in both areas. The added volume from [the Jefferson Farmers trade area] will solidify our market footprint and allow our feed mill to be more efficient. Plus, we can buy more ingredients from local producers.”

Mark Pettit, CEO of Jefferson Farmers Cooperative, explains that neither Co-op had to merge, as both were on solid financial footing. “But conditions in agriculture are expected to be challenging over the next several years,” says Pettit, who will continue to manage the Dandridge location after the merger. “Both organizations wanted to be positioned to face that environment in a way that is best for the farmer-members.”

Pierce agrees, noting that sustainability is the whole purpose of a cooperative system.

“We must be able to sustain ourselves for the benefit of the members,” says Pierce. “We believe in the concept of one member, one vote.

After previous mergers, AgCentral has always worked to keep all members involved in our organization and emphasize to the membership that they have a vested interest in their operation.”

Customers of Jefferson Farmers Co-op will see a new name out front but they will continue to receive service from the same key personnel they have grown to rely on, says Best.

“We are determined to make this [change] as seamless as possible for our members,” he says. “This is their Co-op and their support is what allows us to continue to grow and serve them in the best way possible.”

If the negotiations that led to the move are any indication, the business is off to a good start, says Robert Thompson, who represents Zone 3 on the Tennessee Farmers Cooperative Board of Directors and serves on the AgCentral board.

“Our meetings to work out the details of the merger went well,” says Thompson. “There was a level of trust among us, and we realized we had similar goals and served similar farmer-members.”

James Bacon, board president of Jefferson Farmers Co-op, agrees.

“Their board treated us just like we were family,” he says. “You couldn't ask for a better group of people to work with.

AgCentral Farmers Co-op is a product of multiple mergers and consolidations over many years. Legacy Co-ops include McMinn, Meigs, Loudon, Roane, Blount, Greenback, and Monroe Farmers Cooperatives. McMinn and Loudon merged and later purchased Meigs before merging with Roane Farmers to become Valley Farmers Cooperative. Blount and Greenback merged, and then became Foothills Farmers Cooperative when the Co-op united with Monroe Farmers Co-op. When Valley and Foothills Farmers Cooperatives merged, the new entity became AgCentral Farmers Cooperative.

“The boards demonstrated foresight when they chose the name ‘AgCentral Farmers Cooperative’ because it doesn’t limit its geographic reach should opportunities come up in the future,” explains Best. “Its family tree reflects the evolution of the Co-op system in Tennessee, as boards have recognized the value of working together with other members to better and more effectively serve farmer-members as agriculture and the marketplace change.”

With the addition of Jefferson Farmers Co-op, AgCentral now has 11 different locations to serve farmers throughout the trade area and beyond.