November 20, 2018

US feed company looking for investors to join co-op, build new feed mill

Lohman Producers Exchange, a feed and farm supply company based in Missouri, US, is on the lookout for investors and farmers, which it hopes, will join a new generation cooperative that plans to set up a new feed mill, News Tribune reported.

Called Lohman Milling Operations LLC, the co-op would provide an opportunity for producer members to be Lohaman's partners. It would also allow investors to receive state tax credits - stated at 50% - after going through the Missouri Agricultural and Small Business Development Authority, said  Lohman's general manager Greg Holtgrewe.

In February this year, the co-op enjoyed US$1.5 million in approved state tax credits, according to Holtgrewe. Currently, it needs US$3 million to foot the cost of building the new feed mill. The feed mill's construction would be completed by fall 2019 should Lohman succeeds in obtaining funds by January 1.

The company had also acquired 10 acres of land where an existing building will serve as a retail store and office space.

In addition, the establishment of the new feed mill will lead to the shutdown of the current two sites that Lohman has, Holtgrewe said.

- News Tribune