In 1919, a group of far-sighted farmers saw that by joining together in a group, the group would have greater buying power than each farmer had individually. The original charter of Effingham Equity Cooperative Union Exchange listed 53 members.
The group incorporated in 1921 with 56 stockholders. The first
Board of Directors consisted of John Diehl, William. Wagner, Henry Fuesting, Joseph Vahling and William Soltwedel. The manager was John Mueller, who was paid a salary of $100 per month. The first stock, issued at $100 per share par value, entitled the holder to be a full member eligible for refunds. Refunds earned were applied toward the purchase of stock for new members. Today Effingham Equity stock costs $25.
Effingham Equity began by using the Pennsylvania (now CSX) rail siding across from the old Pevely Dairy (now Dairy Farmers of America) as a base of operations. A warehouse was built to store the products brought in by rail, such as corn, coal, hay, and feed ingredients. This building still stands in Effingham, now owned and used by Boos Block Factory.
The cooperative grew slowly through the 1920s, 1930s, and 1940s at this location. During the 1940s, the serious need for a grain elevator in the Effingham area became apparent, to expand the local market for wheat and corn. Siemer Milling in Teutopolis and Melzer’s Mill in Effingham provided the only local markets for wheat and corn. Soybeans became a cash crop in the 1940s, so local facilities were needed to handle the soybeans and the growing yield of corn.
In 1949, money was raised for a 16,000-bushel metal-clad grain elevator with a scale, warehouse, hammermill, and feed mixer located north of Effingham on the Illinois Central (now Canadian National) Railroad. After a hard struggle and a lot of effort by the board of directors and a handful of staunch supporters, the dream became a reality. This facility became the core of the present-day Effingham location.
A series of expansions to the Effingham location began in the 1950s. In 1953, the Articles and By-Laws were changed to shorten the official name to "Effingham Equity". In 1963, the Equity began a different kind of expansion with the purchase of a grain elevator at Stewardson. Various other facilities were acquired over the years. Today, there are 12 locations covering an area of south-central Illinois that encompasses 10,000 square miles.
While Effingham Equity has grown and developed greatly during the past years, one constant remains – the focus on agriculture. Today, as in 1919, the Effingham Equity's main purpose is to help its members obtain the goods and services they need to farm as efficiently and profitably as possible. The concept of cooperation is a tested form of business organization that has survived wars, depressions, inter-generational transitions and changes in government. Lessons have been learned through both the school of hard knocks and through research to find what works and what doesn't in practical applications. The Equity's challenge for the future is to test its limits to assure that it does the best possible job for its patrons. Everyone at Effingham Equity seeks continual improvement and development to fulfill the changing needs of its customers.
Yesterday Effingham Equity started by buying coal, hay and feed. Today Effingham Equity successfully serves 21st-century agriculture. Tomorrow, through ongoing hard work, Effingham Equity will continue to "Lead the Way" in agribusiness.
Effingham Equity Timeline
1919 – Founded as Effingham Equity Cooperative Union Exchange
1921 – Incorporated
1950 – Present Effingham location established
1953 – Renamed Effingham Equity
