Key Takeaways
- Farm Supply Company and Grange Cooperative Supply Association have announced Board approval of a proposed merger, targeting an effective date of October 1, 2026, pending member approval.
- The combined cooperative will operate 13 retail stores — seven in California and six in Oregon — with approximately 450 employees, up from Farm Supply’s current five stores.
- Increased purchasing power is a primary driver: combined procurement volumes are expected to deliver more competitive pricing, improved product availability, and stronger supplier relationships.
- Grange Co-op’s vertically integrated feed operations and feed mill will strengthen Farm Supply in the feed category, which currently represents more than 20% of its sales.
- The company stores will continue to operate under the Farm Supply Company banner; the Farm Supply Company Board unanimously recommended the merger.
Farm Supply Company and Grange Co-op Announce Proposed Merger
Farm Supply Company and Grange Cooperative Supply Association (Grange Co-op) have announced that both Boards have approved a proposed Agreement and Plan of Merger, bringing together two long-established agricultural cooperatives serving farmers, ranchers, and rural communities across California and Oregon. The Farm Supply Company Board of Directors voted unanimously to recommend the merger to its members, who will now vote on whether to approve the transaction.
If approved, the merger is targeted to become effective on October 1, 2026. Farm Supply Company has begun distributing detailed information and ballots to its shareholders.
What the Combined Cooperative Would Look Like
The merged organisation would consist of 13 retail stores — seven in California and six in Oregon — with a combined workforce of approximately 450 employees. Grange Co-op currently operates eight stores (six in Oregon, two in Northern California), a feed mill, and a central distribution facility in Oregon, and employs over 330 associates. Farm Supply Company stores will continue to operate under the Farm Supply Company brand, which the company notes has built significant equity in local agricultural communities over the past 76 years.
The combined cooperative will operate under a unified governance structure designed to support growth while preserving the member-owned cooperative model.
Strategic Rationale: Scale, Procurement, and Diversification
The merger’s primary commercial rationale centres on purchasing power. By combining procurement volumes, the organisation expects to negotiate more competitive input pricing, improve product availability, and strengthen relationships with key suppliers — benefits that would flow through to member-owners in the form of improved cost efficiencies and greater supply reliability.
Beyond procurement, the deal addresses geographic and market risk. Greater scale across two states is expected to reduce the combined cooperative’s exposure to regional weather-related volatility and localised market fluctuations — a meaningful consideration for rural agricultural supply cooperatives operating in variable climates.
A further strategic advantage is Grange Co-op’s vertically integrated feed business. Its feed mill and manufacturing capabilities are expected to materially strengthen Farm Supply in the feed category, which currently accounts for more than 20% of Farm Supply’s total sales.
“With the benefit of added scale and stability, this will be a bold new chapter for Farm Supply which will ensure longevity and sustainability. It will also be a financially positive transaction from day one,” said Michael Mendes, CEO of Farm Supply Company.
“We share the same high ethical standards and are well known for exceptional customer service to our customers, shareholders and the communities we serve. It is a critical next step in the evolution of Farm Supply and its treasured role in our agricultural community,” said Jim Brabeck, former CEO of Farm Supply and current Board member.
