Farm Supply Company and Grange Co-op have reached a significant milestone in their plans to unite after shareholders from both organizations overwhelmingly approved the proposed Agreement and Plan of Merger. The merger, which received support from more than 90% of the combined shareholder base, is expected to become effective on October 1, 2026, marking the beginning of a new chapter for two long-established agricultural cooperatives committed to serving farmers, ranchers, homeowners, and rural communities across California and Oregon.
The strong shareholder endorsement reflects widespread confidence in the strategic vision behind the merger and highlights the belief that the combined organization will be better positioned to meet the evolving needs of its members while strengthening its long-term competitiveness in the agricultural retail market.
Overwhelming Support from Farm Supply Members
Farm Supply Company members voted decisively in favor of the merger, with 97% of voting members approving the proposal. The overwhelming level of support underscores the trust members place in the company’s leadership and their confidence that the merger will create lasting value for future generations.
Michael Mendes, Chief Executive Officer of Farm Supply Company, described the shareholder vote as a defining moment in the cooperative’s history.
“For more than 75 years, Farm Supply Company has evolved to meet the changing needs of our members,” Mendes said. “Today, our members chose to write the next chapter of that story. This overwhelming vote demonstrates both confidence in our future and a commitment to ensuring that future generations inherit an even stronger organization. We look forward to combining the strengths of two outstanding companies while preserving the values that have guided us since 1950.”
His comments reflect the cooperative’s longstanding commitment to balancing growth with its founding principles, ensuring that expansion strengthens rather than changes the organization’s member-focused culture.
Boards See Long-Term Strategic Value
The Farm Supply Company Board of Directors unanimously recommended approval of the merger after evaluating its long-term strategic and financial benefits. According to the board, bringing together Farm Supply Company and Grange Co-op will create a stronger regional agricultural retailer with greater operational scale, improved efficiency, and expanded capabilities.
The combined organization is expected to leverage the strengths of both companies to better serve customers while improving resilience in an increasingly competitive agricultural marketplace.
Among the key strategic benefits identified by the board are:
- Greater operational scale across multiple markets.
- Expanded product selection for members and customers.
- Enhanced procurement efficiency.
- Increased geographic diversification.
- Reduced exposure to localized weather and regional market fluctuations.
- Stronger overall operational capabilities.
Together, these advantages are expected to position the merged company for sustainable growth while continuing to provide high-quality products and services to agricultural producers and rural communities.
Increased Purchasing Power Creates Member Benefits
One of the most significant advantages expected from the merger is substantially greater purchasing power.
By combining procurement volumes across both organizations, the new company will be able to negotiate more competitive pricing with suppliers while improving product availability throughout its retail network.
Larger purchasing volumes often translate into stronger supplier partnerships, allowing organizations to secure better pricing, more consistent inventory, and improved access to products during periods of market volatility.
For members and customers, these efficiencies are expected to provide several tangible benefits, including:
- Lower procurement costs.
- Improved product availability.
- Greater supply chain reliability.
- Expanded product assortments.
- Enhanced relationships with leading agricultural suppliers.
These improvements are particularly important as agricultural retailers continue to navigate fluctuating commodity prices, transportation challenges, and supply chain disruptions affecting the broader farming industry.
Stronger Feed Business Through Vertical Integration
Another major strategic benefit of the merger lies within the animal feed segment.
Grange Co-op operates vertically integrated feed manufacturing operations, including its own feed mill in Oregon. These capabilities will significantly strengthen Farm Supply Company’s feed business, which currently accounts for more than 20% of total sales.
Vertical integration provides several competitive advantages, including greater quality control, improved production efficiency, and increased flexibility in responding to customer demand.
The addition of Grange Co-op’s feed manufacturing expertise is expected to:
- Improve feed product availability.
- Expand feed product offerings.
- Increase manufacturing efficiencies.
- Strengthen inventory management.
- Support future product innovation.
As livestock producers continue seeking reliable feed supplies at competitive prices, the combined organization’s enhanced feed capabilities are expected to become an increasingly valuable competitive advantage.
Preserving Trusted Community Brands
Despite combining operations, Farm Supply Company emphasized that its retail stores will continue operating under the well-established Farm Supply brand.
Maintaining the existing brand reflects the company’s commitment to preserving the trust and recognition it has built within local communities over more than seven decades.
The Farm Supply name has become synonymous with dependable agricultural products, knowledgeable service, and strong community relationships throughout its service territory. Company leaders believe retaining the brand will provide continuity for customers while allowing the organization to benefit from the expanded resources of the merged business.
Similarly, Grange Co-op brings decades of experience serving agricultural producers and rural households throughout Oregon and Northern California, making the merger a partnership between two organizations with similar missions and complementary strengths.
Expanded Regional Footprint
Following completion of the merger, the combined company will operate a significantly larger retail network across two western states.
Farm Supply Company currently serves customers throughout California, while Grange Co-op operates eight retail stores, including six locations in Oregon and two in Northern California.
Together, the merged organization will include:
- 13 retail stores
- Seven locations in California
- Six locations in Oregon
This expanded geographic footprint provides greater market diversification while enabling the organization to serve a broader customer base across the Pacific Coast agricultural region.
A wider regional presence also helps reduce operational risk by balancing exposure across different agricultural markets, weather conditions, and seasonal demand cycles.
Expanded Workforce and Infrastructure
The merger will also create a larger and more capable workforce.
Grange Co-op currently employs more than 330 associates and operates both a feed mill and a central distribution facility in Oregon. When combined with Farm Supply Company, the new organization will employ approximately 450 employees.
Beyond expanding its workforce, the merged company will benefit from enhanced operational infrastructure, including:
- Regional distribution capabilities.
- Feed manufacturing facilities.
- Expanded logistics resources.
- Greater inventory management capacity.
- Improved operational coordination across multiple locations.
These assets are expected to support improved service levels while positioning the organization for future expansion opportunities.
Positioning for Long-Term Growth
The merger represents more than a simple expansion of store locations—it reflects a long-term strategy to strengthen competitiveness in an evolving agricultural marketplace.
Agricultural retailers today face increasing pressure from changing customer expectations, supply chain complexities, market volatility, and rising operating costs. By combining their resources, Farm Supply Company and Grange Co-op aim to create a stronger organization capable of addressing these challenges while continuing to deliver value to members.
The combined company expects enhanced purchasing power, operational efficiencies, expanded product offerings, stronger manufacturing capabilities, and broader geographic reach to provide a solid foundation for sustained growth.
With shareholder approval now secured and the merger scheduled to take effect on October 1, 2026, Farm Supply Company and Grange Co-op are preparing to begin a new chapter focused on delivering greater value, strengthening agricultural communities, and preserving the cooperative values that have guided both organizations for generations.
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