Feb 04, 2021

Area CO-OP's file legal action against Team Marketing Alliance

Posted Feb 04, 2021 5:18 PM

MARION, Kan. — Three area CO-OP’s have filed a civil case asking that the limited liability company that oversees the operations of the CO-OP’s be dissolved, citing unfair practices.

The Farmers CO-OP in Halstead, Central Prairie CO-OP in Sterling and Cooperative Grain and Supply of Hillsboro all filed the civil case against Team Marketing Alliance (TMA) and the Mid Kansas CO-OP of Moundridge.

The CO-OP’s are asking that Team Marketing Alliance be dissolved and provide proper financial relief. The three CO-OP’s claim that Team Marketing did not pay the three small CO-OP’s their fair share of the profits recognized by TMA. The three plaintiffs tried several times to find some common ground with TMA but when TMA refused to budge, the three filed the civil action in Marion County District Court. 

The three CO-OP's are asking the courts to dissolve the TMA group and then pay out a settlement to the six companies that make up TMA.

That would include $1.4 million to the Halstead CO-OP, $1.3 million to the CO-OP in Hillsboro and $2.6 million to the Sterling CO-OP.

Mid Kansas and its two subsidiary companies, Midwest Fertilizer and Producer Ag would get more than $14 million in the settlement if approved.

A request to hold a meeting and vote to dissolve the group has been rejected by TMA.