ADM-Benson Quinn, United Farmers Coop form j.v.
Dec. 20, 2011
by Eric Schroeder
DECATUR, ILL. — ADM-Benson Quinn and United Farmers Coop (U.F.C.) have formed United Grain Systems, L.L.C., a joint venture that will build and operate a grain elevator in Brownton, Minn. The new elevator will have a total storage capacity of 3.6 million bus, will be capable of loading 110-car shuttle trains, will feature four receiving pits with the capability to dump 80,000 bus of grain per hour, and will be located on a Twin Cities & Western rail line that has service from three railroads: Burlington Northern Santa Fe, Canadian Pacific and Union Pacific, ADM said.
In addition to the Brownton elevator, the joint venture will operate five existing U.F.C. elevators in Minnesota at Bird Island, Klossner, Lafayette, LeSueur (south elevator) and Winthrop. The elevators primarily handle corn and soybeans.
“ADM-Benson Quinn is pleased to join with United Farmers Coop to build a new shuttle loader elevator in Minnesota,” said Scott Nagel, president of ADM-Benson Quinn. “This project will expand crop origination and transportation infrastructure in Minnesota, opening new markets for local farmers to sell their products at competitive prices.”
Jeff Nielsen, chief executive officer of U.F.C., said the joint venture is a further extension of U.F.C.’s mission “to create more and better business opportunities that add value to the grain produced by our members and patrons on their farms.”
He said the joint venture also illustrates the company’s belief that agricultural cooperatives sometimes must join together with large agriculture companies like ADM to create partnerships “that amass the necessary capital and expertise to create these new opportunities for our members and patrons.”