Statement Regarding TMA Mediation from MKC and Producer Ag
Aug 31, 2021
MOUNDRIDGE, Kan. – Together, MKC and Producer Ag, LLC will continue to be committed to the mission and strategy of Team Marketing Alliance, LLC (TMA). TMA, a grain marketing and risk management company serving our agricultural customers, has been a successful business over the past 20 years by all measures. We will continue that success into the future, focusing on new markets, risk management and technology.
At this time, the extent of what the TMA brand will look like moving forward is uncertain. Still, the assets, services, contracts and team of experts provided to customers to help them be more successful by TMA will remain.
On February 2, 2021, three minority owners of TMA, consisting of Farmers Coop Elevator Co. (Halstead, KS), Cooperative Grain and Supply (Hillsboro, KS) and Central Prairie Co-op (Sterling, KS), filed a district court petition to dissolve TMA. MKC and Producer Ag attempted multiple times to mediate this matter in good faith prior to this petition. Since the petition was filed, an arbitration hearing was conducted on June 8-9 and the arbitration panel has ordered that TMA be dissolved. While that decision is disappointing to MKC and Producer Ag, it does not impact our commitment to continuing to provide best-in-class tools and resources our member-owners have come to expect.
Although we wanted to avoid a dissolution because of the potential impact on TMA farmer-customers and the company’s long history of excellent financial performance, MKC and Producer Ag are committed to minimizing any disruption and continuing that performance. We will make sure all of TMA’s existing obligations to customers are fully honored. This dissolution has no impact on any of the physical assets owned by MKC and Producer Ag. We will continue to operate all existing assets, including the two rail loaders owned by Producer Ag that, prior to dissolution, had contributed substantially to the earnings of all members of TMA. We are excited by the future because of the shared visions of growth that our companies share, which will add value for farmers when implemented fully. As soon as more transition details are finalized, we look forward to sharing more of our vision.
MKC and Producer Ag are majority owners of TMA with approximately 75% ownership.
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About MKC
MKC (Mid Kansas Cooperative) is a full-service farm cooperative offering a complete line of products, programs and services for both farm and urban customers throughout Kansas. With a current membership of nearly 10,000 members, MKC specializes in grain, agronomy, energy, feed and risk management. More than 530 employees play an important role in the growth and success of the cooperative. Since its' founding in 1965, MKC has expanded its footprint through mergers and acquisitions to meet customers' needs. Learn more about MKC at www.mkcoop.com and follow the MKC story on Facebook, Twitter and Instagram.
About Producer Ag
Producer Ag is a limited liability company owned by CHS Inc. and MKC. Producer Ag leases high-speed shuttle loading facilities to TMA in Canton, KS, and Milan, KS. Producer Ag is a member of TMA.
For the official statement release, click here.
For more information, please contact:
Nichole Gouldie, ngouldie@mkcoop.com or 620-345-6328
At this time, the extent of what the TMA brand will look like moving forward is uncertain. Still, the assets, services, contracts and team of experts provided to customers to help them be more successful by TMA will remain.
On February 2, 2021, three minority owners of TMA, consisting of Farmers Coop Elevator Co. (Halstead, KS), Cooperative Grain and Supply (Hillsboro, KS) and Central Prairie Co-op (Sterling, KS), filed a district court petition to dissolve TMA. MKC and Producer Ag attempted multiple times to mediate this matter in good faith prior to this petition. Since the petition was filed, an arbitration hearing was conducted on June 8-9 and the arbitration panel has ordered that TMA be dissolved. While that decision is disappointing to MKC and Producer Ag, it does not impact our commitment to continuing to provide best-in-class tools and resources our member-owners have come to expect.
Although we wanted to avoid a dissolution because of the potential impact on TMA farmer-customers and the company’s long history of excellent financial performance, MKC and Producer Ag are committed to minimizing any disruption and continuing that performance. We will make sure all of TMA’s existing obligations to customers are fully honored. This dissolution has no impact on any of the physical assets owned by MKC and Producer Ag. We will continue to operate all existing assets, including the two rail loaders owned by Producer Ag that, prior to dissolution, had contributed substantially to the earnings of all members of TMA. We are excited by the future because of the shared visions of growth that our companies share, which will add value for farmers when implemented fully. As soon as more transition details are finalized, we look forward to sharing more of our vision.
MKC and Producer Ag are majority owners of TMA with approximately 75% ownership.
###
About MKC
MKC (Mid Kansas Cooperative) is a full-service farm cooperative offering a complete line of products, programs and services for both farm and urban customers throughout Kansas. With a current membership of nearly 10,000 members, MKC specializes in grain, agronomy, energy, feed and risk management. More than 530 employees play an important role in the growth and success of the cooperative. Since its' founding in 1965, MKC has expanded its footprint through mergers and acquisitions to meet customers' needs. Learn more about MKC at www.mkcoop.com and follow the MKC story on Facebook, Twitter and Instagram.
About Producer Ag
Producer Ag is a limited liability company owned by CHS Inc. and MKC. Producer Ag leases high-speed shuttle loading facilities to TMA in Canton, KS, and Milan, KS. Producer Ag is a member of TMA.
For the official statement release, click here.
For more information, please contact:
Nichole Gouldie, ngouldie@mkcoop.com or 620-345-6328