The decision to dissolve came from a 130-1 vote during a special members meeting held at Turner Hall, Tuesday. As a result of the vote, FCH will liquidate and sell all of its assets. The decision to dissolve was unanimously recommended by the FCH board.

FCH was founded in 1923. It would have celebrated its centennial this year, but mounting debt forced the coop board to take action.

FCH board president Matt Suess said at the beginning of the meeting that it was a sad day. The board had looked into every option to keep the coop going, but with growing debts, it was no longer sustainable.

Jeff Schindele with Schindele Consulting had worked with the coop through the process. He explained the financial situation.

The coop lost significant money following the June 1, 2021 grain elevator explosion in New Ulm. The coop was forced to cancel trains to that elevator. The rebuild of the elevator also took longer than anticipated with higher costs for materials.

The coop did look into merging with another coop, but based on the debt owed they were unable to find a partner.

In addition, FCH was unable to find property insurance coverage. After settling on the grain elevator explosion the coop was dropped by its insurer. As of April 1, 2023, they will have no worker’s comp or property insurance.

Schindele said dissolving and liquidating assets were the best way to move forward. Central Region Coop (CRC) and New Visions have worked with the board and will be buying up assets. CRC is taking over FHC’s agronomy, energy and grain business. New Vision is purchasing the feed assets in Mankato and Courtland. CRC and New Visions will also take on FCH’s employees and move contracts to other facilities.

Schiendele said members will get 100% of dividends back in the form of a tax reduction, but no equity will be paid.

The USDA will survey all FCH facilities Wednesday to determine the current inventory.

FCH board member Randy Aschenbrenner said it was hard to dissolve the coop, but acknowledged there was no choice.

“It is never good to lose a local coop,” he said but believed CRC and New Visions will be good to the loyal patrons.

Following the meeting, several members lamented the need to dissolve, but all understood it.

Member Mark Gronewald described the meeting as a funeral.

Chad Hoppe said the problems were only snowballing and nothing else could be done but dissolve. He believed the vote would help the FCH employees.

After the paper ballot vote was counted in favor of dissolving, Suess thanked the members.

“The board appreciates everything you guys have done and we especially appreciate all things our employees have done over the years,” he said. “I know it has been difficult over the last three months.”

Suess also thanked CRC and New Visions, who were extremely supportive during the process.