Skyland Grain, Ag-Producers Coop announce Kansas merger for member-owners

Jennifer Stultz
Pratt Tribune
Kansas grain farmers associated with Skyland grain may count on marketing benefits and risk management boosted by a recent merger of the Kansas company based in Ulysses and Texas-based Ag Producers Co-op.

Kansas-based agriculture company Skyland Grain and the Texas-based cooperative Ag Producers Co-op announced Feb. 4, 2021 that they have signed an agreement between the two companies for a joint venture effective on April 1.

Scale and diversification, both in services and geography, are important to the cooperative model that serves the local farmer.

“Skyland Grain is a unique and evolved cooperative partnership that allows us to provide our member-owners with greater risk management and the benefits of size. Culturally, we also fit well together,” Gregg Allen, CEO of Ag Producers Co-op, said in a release. “Skyland Grain and Ag Producers Co-op are both strong and progressive companies."

This relationship will open up the market to farmer-owners across Kansas, Colorado, Oklahoma and West Texas.

"Together, we create a stable and progressive future for our members,” David Cron, CEO of Skyland Grain, said in a release.

Skyland Grain, which began in 2004, is headquartered in Ulysses. It began operation with Johnson Cooperative Grain and ADM Grain Co. as the founding parent companies. On Feb. 1, 2010, Syracuse Cooperative Exchange also became part of the joint venture, followed by The Cairo Cooperative Exchange on May 1, 2015. The three co-ops joined in 2017 to form Skyland Co-op Inc. In September 2019, Cropland Co-op became a part of the joint venture, making ADM, Skyland Co-op and Cropland Co-op all owners.

Most recently, Cropland Co-op’s membership unanimously voted to merge with Skyland Co-op Inc. Skyland Grain operates grain receiving facilities in 42 locations across Kansas, Oklahoma and Colorado. The coop has licensed grain storage capacity of more than 100 million bushels.

Additionally, Skyland Grain provides full-service energy and a full service agronomy department that provides bulk liquid, dry, and anhydrous ammonia fertilizers, chemicals, and seed, as well as custom application for fertilizer and chemicals.

Ag Producers Co-op is the result of multiple mergers and acquisitions including Sunray Co-op, Olton Grain Co-op, Olton Co-op Gin, United Farm Industries, Hart Producers Co-op Gin, Bushland Grain Co-op and Dalhart Consumers Fuel Association. In September of 2015 they acquired AGCO in Spearman, Texas, and then Robinson Grain in Panhandle, Texas.

Ag Producers Co-op specializes in grain, cotton, agronomy services, fuel and retail stores across West Texas. It operates facilities in 22 locations and has a total licensed grain storage capacity of over 68 million bushels and three cotton gins.