Landus Cooperative announced this week that it has signed an asset purchase agreement to acquire Archer Daniels Midland’s (ADM) grain facility in Manilla, Iowa.
Under the purchase agreement, Landus will gain more than 2.3 million bu. of grain capacity for its first wholly owned Crawford County, Iowa, location, including 775,000 bu. of upright storage, more than 1.5 million bu. of bunker storage and receiving capacity of 32,000 bu. per hour.
Pending final documentation, Landus is slated to take possession June 1, 2018.
“This Manilla, Iowa, site is a strategic purchase for Landus Cooperative and farmers in western Iowa,” Landus chief executive officer Milan Kucerak explained. “While this grain asset has been well cared for, we expect to improve efficiency on behalf of the customer utilizing best practices from our nearly 60 grain locations in Iowa.”
He added, “Our domestic and international grain end users continue to demand high-quality corn and soybeans, and we know Crawford County, Iowa, farmers can help meet that demand.”
Under the terms of the purchase agreement, ADM and Landus plan to honor all outstanding grain contracts.
“We are anxious to begin working with growers in and around Crawford County and want to make their transition to Landus Cooperative as seamless as possible,” explained Roger Fray, chief commodity marketing officer who oversees a team of dedicated grain marketing advisors.
Fray said the Landus Cooperative Advantage Package of more than a dozen marketing alternatives, combined with the company’s patronage opportunities, make membership in Landus an attractive option for former ADM customers.
Landus plans to host a grower meeting shortly after final documents are signed and the facility changes ownership.