By STAN MADDUX

Indiana Correspondent

COLUMBIA CITY, Ind. — Construction has begun on a new Indiana feed mill in a partnership between two grain storage handlers.

Once completed, the mill east of Columbia City will feature a state-of-the-art pelletizer and utilize 6 million bushels of locally grown corn annually, said officials with Alliance Feed, LLC.

Alliance Feed LLC is a new company formed by joint venture between Co-Alliance, LLP, one of the largest cooperatives in the Midwest, and Farmers Grain & Feed Company.

Terry Shively, president of Farmers Grain and Feed Company, said the partnership is a natural next step for his third generation family business serving the area of Whitley, Allen and Noble counties since 1950 in the northeast corner of the state.

“Our family history is rooted in agriculture. We are excited to diversify our grain operations by producing livestock feed for our local farmers from the grain they store at our facility,” Shively said.

The mill will also provide corn growers another market for their crop, said Kevin Still, CEO of Co-Alliance.

“We’re looking forward to working with the Shively family and Farmers Grain on this exciting new venture which we believe will help farming families in the community for generations,” Still said.

Still said another objective for the partnership is having the same amount of success as the new feed mill in Reynolds in the northwest part of the state owned entirely by Co-Alliance.

“Reynolds Feed is currently operating above expectations, producing 250,000 tons of feed for 750,000 pigs annually,” Still said.

The new mill is expected to employ 13 people.

Construction is targeted for completion in July of 2019.

Farmers Grain & Feed Company started as a flour mill business in Columbia City at the turn of the 19th century. Eventually, it grew and transformed into a grain and feed company with 49 employees presently.

The firm with 3.3 million bushels of upright storage and 2 million bushels of ground storage has been at its current location on 600 East with convenient access to rail and U.S 30 for eight-years.

Dewey Bucher, vice-president of Swine and Animal Nutrition for Co-Alliance, said the new mill is costing about $18 million. He said Co-Alliance is paying a majority of the cost.

Bucher said the partnership should mean increased profits for both companies from having bulk feed to offer directly to retail customers as opposed to shipping grain from elevators to buyers who then raise the price before selling it to the user.

Bucher said eliminating the middle man also reduces the cost of doing business and should drive up the price of corn for the supplier. The supplier of the mill will be Farmers Grain & Feed Company.

He said livestock farmers in the area should also benefit from lower feed costs from having a local grain processor.

Bucher said Co-Alliance has similar partnerships that work well with the energy and agronomy sectors of its operation. This is the first such partnership with the swine and animal nutrition side of Co-Alliance, he said. “So, we’re not new to partnerships,” Bucher said.

Co-Alliance has about 500,000 head of hog throughout central and northern Indiana and southwest Michigan.

Bucher said Farmers Grain & Feed Company was sought for the partnership because of its longstanding solid reputation and ability to readily supply enough grain to the mill.

Co-Alliance headquartered in Avon, Ind., has more than 50 locations across Indiana, Ohio and Michigan and bills itself as one of the largest and most successful agribusiness and energy marketing and supply cooperatives in the Midwest.