Farm Supply Company and Grange Co-op Move Forward with Proposed Cooperative Merger
Farm Supply Company and Grange Cooperative Supply Association, widely known as Grange Co-op, have announced a major milestone in their efforts to create a stronger and more resilient agricultural cooperative. The boards of directors of both organizations have approved a proposed Agreement and Plan of Merger, paving the way for a strategic combination that would unite two long-established cooperatives serving farmers, ranchers, rural businesses, and local communities throughout California and Oregon.
The proposed merger represents a significant step toward building a larger regional cooperative capable of delivering enhanced value to members while maintaining the cooperative principles that have guided both organizations for decades. Leaders from both cooperatives believe the transaction will create new opportunities for growth, operational efficiency, and long-term sustainability in an increasingly competitive agricultural marketplace.
The Farm Supply Company Board of Directors unanimously endorsed the merger proposal, highlighting a range of expected benefits including increased scale, broader product offerings, stronger purchasing capabilities, and improved operational performance. By combining resources and expertise, the two organizations aim to create a more diversified cooperative that is better positioned to navigate changing market conditions and support the evolving needs of agricultural producers.
According to company leadership, one of the most important advantages of the merger is the ability to enhance organizational stability while preserving the cooperative model. Agricultural businesses often face challenges related to fluctuating commodity prices, changing weather patterns, supply chain disruptions, and regional economic conditions. A larger and more geographically diverse cooperative can help mitigate these risks by spreading exposure across multiple markets and customer segments.
Michael Mendes, Chief Executive Officer of Farm Supply Company, emphasized the strategic importance of the transaction and its potential to secure the future of the cooperative.
“With the benefit of added scale and stability, this will be a bold new chapter for Farm Supply which will ensure longevity and sustainability,” Mendes said. “It will also be a financially positive transaction from day one.”
The merger is expected to generate substantial benefits through increased purchasing power. By combining procurement volumes, the cooperative will be able to negotiate more effectively with suppliers, potentially securing more competitive pricing and improved product availability. This enhanced purchasing leverage is anticipated to translate into better value for members and customers while strengthening relationships with key vendors and manufacturing partners.
Improved procurement capabilities are particularly important in today’s agricultural environment, where producers depend on reliable access to feed, equipment, animal health products, fencing materials, farm supplies, and other essential goods. Leaders believe the combined organization will be better equipped to maintain inventory levels, reduce supply disruptions, and provide a wider selection of products to meet customer needs.
Another significant benefit of the proposed merger involves Grange Co-op’s vertically integrated feed operations. Feed products represent a critical segment of the agricultural supply market, particularly for livestock producers throughout the region. Grange Co-op operates its own feed manufacturing facilities, giving it greater control over production, quality, and distribution.
These capabilities are expected to strengthen Farm Supply Company’s existing feed business, which currently accounts for more than 20 percent of company sales. Access to expanded feed manufacturing and distribution resources could enhance product availability, improve efficiency, and support future growth in this important category.
Despite the proposed combination, Farm Supply Company customers will continue to see the familiar Farm Supply Company brand in their communities. Company officials have stated that retail locations will remain under the Farm Supply Company banner, preserving the strong reputation and customer loyalty that the organization has built over the past 76 years.
Maintaining the Farm Supply identity reflects the importance of local relationships and community connections that have long been central to the cooperative’s success. Farm Supply Company has established itself as a trusted partner for agricultural producers and rural residents, and leadership believes retaining the brand will help ensure continuity for customers and shareholders.
Grange Co-op also brings considerable resources and experience to the merger. The cooperative currently operates eight retail locations, including six stores in Oregon and two in Northern California. In addition to its retail operations, Grange Co-op employs more than 330 associates and manages a feed mill as well as a central distribution facility in Oregon.
If the merger receives final approval, the combined organization will operate a network of 13 retail stores across the two states, including seven locations in California and six in Oregon. The merged cooperative will employ approximately 450 people, creating a larger workforce capable of supporting expanded operations and future growth initiatives.
Support for the merger extends beyond current executive leadership. Jim Brabeck, former Chief Executive Officer of Farm Supply Company and a current member of the board, described the transaction as a natural progression for both organizations.
Brabeck noted that the two cooperatives share many of the same values and have built reputations based on strong ethical standards, customer service, and community involvement. He believes the merger provides an opportunity to preserve these strengths while enhancing the organizations’ ability to serve members and customers in the years ahead.
“We share the same high ethical standards and are well known for exceptional customer service to our customers, shareholders and the communities we serve,” Brabeck said. “It is a critical next step in the evolution of Farm Supply and its treasured role in our agricultural community.”
Should members approve the transaction, the merged cooperative will operate under a unified governance structure designed to support long-term growth while maintaining the member-owned cooperative model. Leadership has emphasized that preserving cooperative ownership remains a central objective of the merger.
Farm Supply Company has begun distributing detailed information regarding the proposal to shareholders, including voting materials and ballots. Members will have the opportunity to review the terms of the transaction and participate in the approval process.
Pending shareholder and member approval, the merger is expected to become effective on October 1, 2026. If completed, the transaction would create a stronger regional agricultural cooperative with expanded capabilities, greater geographic reach, and enhanced resources to serve farmers, ranchers, and rural communities across California and Oregon for generations to come.
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