CARGILL announced that it has reached an agreement to acquire the grain storage and crop input assets of Northstar Grain LLC and associated properties in Decatur, Mich.
The assets include 4.5 million bushels of storage space for corn, soybeans and wheat and a crop input business. The site is served by the Norfolk Southern railroad, which provides access to markets in the eastern and southeastern U.S.
The transaction was expected to be completed by the end of June, pending routine due diligence. Terms were not disclosed.
"Our ownership of these assets will mean that farmers will gain a competitive market for their grain as well as an expert crop inputs team from a company they can rely on," said Ben Breazeale, leader of the Greater Indiana Farm Service group of Cargill AgHorizons U.S. "We also bring to the table industry-leading risk management products, personalized on-farm grain marketing services and excellent customer service.
Cargill will initially invest about $3 million in upgrades to the Decatur facility to complete the construction of a 500,000 bu. storage bin and increase the capability to ship 75-car unit trains.
"We look forward to notably increasing the competitiveness of this facility as a market for our future customers and connecting it to the extensive grain and oilseed supply chains we serve," Breazeale said.