Ceres Global Ag Corp. announced that its wholly owned subsidiary, Riverland Ag Corp., has entered into an agreement with Farmer's Co-op Grain and Seed Assn. (FCGS), an agricultural cooperative based in Thief River Falls, Minnesota, to form a grain merchandising joint venture to be based in Thief River Falls. FCGS will contribute its existing grain elevator and related grain merchandising assets in Thief River Falls to the joint venture, with Riverland contributing cash. The transaction is expected to close in January 2021.

Following closing, the joint venture will undergo an expansion project designed to enable loading unit trains. The facility will be serviced by Canadian Pacific (CP) and FCGS will continue to operate its non-grain merchandising businesses independent of the operation of the Joint Venture.

"The formation of this Joint Venture marks a meaningful step in our broader strategy to increase core product origination directly from growers, including the Thief River Falls area in particular" said Robert Day, president and chief executive officer at Ceres. "We look forward to partnering with the hundreds of growers who make up FCGS and working closely with the CP to efficiently market growers' products and create value for our downstream customers."

Darwin Klamar, president of FCGS's board, commented, "Adding storage and rail loading capabilities to our elevator in Thief River Falls is a critical step FCGS must take in order to maintain its market competitiveness, both for today and into the future. With Riverland's expertise in managing railroad programs and providing destination market access, FCGS will be well positioned to serve the needs of its growers and patrons for decades to come."