GROWMARK and Central States Enterprises (CSE) today announced the formation of a joint venture that will send grain grown in Iowa directly into markets in the West, Southwest, and Mexico.

The alliance, structured as a limited liability corporation called CSE/GROWMARK, LLC, goes into effect Oct. 1, 2005.

According to Larry Keene, GROWMARK director of grain risk management and value enhanced services, the venture will further the regional cooperative’s ongoing effort to develop markets for Midwest grain.

“Through this venture, GROWMARK grain member cooperatives in Iowa will originate farmers’ grain and have access to rail cars and markets on the Union Pacific Railroad headed for points west and southwest of the Corn Belt. The corporation will lease the rail cars,” Keene says. “By working with CSE, we will assure access to markets that require the control of rail cars and freight costs at competitive prices. In turn, CSE is assured of a reliable source of grain for rail shipment.”

CSE, based in Heathrow, Florida, is known for its railroad logistics capabilities and access to end-user grain markets throughout the United States.

Ken Cupples, executive vice president at Central States Enterprises stated, “This association and new venture will give Central States an additional tool to use in arbitrage and spreading with other markets.  We look forward to adding value and working with the Iowa elevators.”

GROWMARK field staff will work with Iowa grain elevators to originate the grain needed. CSE staff will handle the logistics of the rail shipments and work to create additional demand for Iowa grain.

“This agreement is designed to serve GROWMARK grain member cooperatives in Iowa because of the market dynamics within the state. There is an increasing amount of Iowa grain being directed to the Southwest. We want to capitalize on this trend by assuring the availability of transportation for our grain members,” Keene adds. 

GROWMARK is a regional farm supply and grain marketing cooperative operating in 21 states and Ontario, Canada. It is based in Bloomington, Ill.

CSE is a corporation with grain facilities in New Haven and Montpelier, Ind., Lake City, Fla., and Camilla, Ga.