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Riverland Ag Corp., a subsidiary of Ceres Global Ag Corp., has entered into an agreement with Farmer's Co-op Grain and Seed Association (FCGS) to form a grain merchandising joint venture to be based in Thief River Falls, Minnesota.
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.
After closing, the joint venture will pursue an expansion project designed to enable unit train loading. The facility will be served by Canadian Pacific.
FCGS will continue to operate its non-grain merchandising businesses independent 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 Ceres President and Chief Executive Officer Robert Day in a press release. "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."
The new facility will meet CP's 8,500-foot high efficiency product standards, said Joan Hardy, CP's vice president of sales and marketing for grain and fertilizers.
"We commend Riverland Ag and Farmer's Co-op Grain and Seed Association on moving this project forward, enhancing the grain handling capacity in this region," Hardy said.