| Grain giant ADM buys Illinois’ Fasco Mills Co. |
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| By DEBORAH BEHRENDS
Illinois Correspondent
MENDOTA, Ill. — Archer Daniels Midland has entered an agreement to acquire the business operations of Fasco Mills Co., headquartered in Mendota.
“These elevators allow ADM to offer increased marketing alternatives to farmers in northern Illinois while securing the commodity flow for ADM’s biofuel, food and feed needs,” said Matthew Jansen, president of ADM’s grain group.
“Our management team at Fasco has built significant value into these operations, and we feel that ADM’s diverse resources will further enhance their value to the farmer,” said Richard Zimmerman, chairman of Fasco Mills.
The transaction closed Sept. 1.
Fasco and ADM had worked in partnership to operate the Mendota terminal for a number of years. The partnership was known as Northern Crossing LLC.
Fasco’s history
During the early 1940s, the Ella Berry farm on the east edge of Mendota was purchased. When enough capital had accumulated, the Fasco Feed Mill was built and began operation in March of 1961. Richard Zimmerman, designed electrical systems to tie in with automated feed mixing. He then built the necessary control panels for conveyors, elevators and feed processing. Later, in 1965, the decision was made to build a grain handling facility adjacent to the feed mill. This project consisted of a completely modern grain processing and handling unit.
To meet the growing demand of farmers wanting to know how they could get maximum dollar for their grain and/or livestock, Fasco became a commodities brokerage firm in 1981.
Fasco Mills has Illinois facilities in Mendota, Compton, Clarion, Seward, Creston, Steward, Ashton and German Valley.
In recent years, the company began using rail transportation to ship grain to end users. Fasco operates a 25-car loader on the Canadian National/Illinois Central at Seward. With the rail line looking to establish a stronger presence in the Illinois grain industry, the timing was just right for the construction of a new rail terminal along a main line in Mendota.
The Zimmermans had a vision of a train shuttle for many years. They took that vision and implemented the construction of the rail facility.
This 950,000-bushel slipform concrete terminal constructed for about $6.5 million northeast of the I-39/U.S. Route 34 interchange about four miles east of Mendota. It features a 7,500-foot loop track. The Mendota and the Illinois River terminal at LaSalle, Ill., are both operated by Northern Crossings LLC.
The venture has offered advantages to both Fasco and ADM, according to Fasco Mills President Curt Zimmerman.
“Fasco gains improved economies of scale, better access to rail freight, the potential for new rail markets in the United States and Mexico and a physical presence on the Illinois River. ADM, in turn, preserves a relationship with one of its largest Illinois grain customers and gains participation in a well-situated rail terminal,” explained Zimmerman.
This farm news was published in the Sept. 12, 2007 issue of Farm World, serving Indiana, Ohio, Illinois, Kentucky, Michigan and Tennessee. |
| 9/12/2007 |
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