year, and the rest are retained as equity in

year, and the rest are retained as equity in the business and used for operating expenses. That equity is repaid on a deferred basis, usually after a period of years, Mr. Sanford explained.

The merger, he said, would involve writing off the Orange-Madison co-op’s debt, about $1 million, then merging its remaining assets, estimated at about $2 million, with the Culpeper cooperative. Those assets would be used to finance the cooperative’s operation, as they do now, he explained.

The proposed merger has not met with the unanimous support of either Orange-Madison’s board of directors or its membership. Three of „ the board members voted against the merger plan.

The Culpeper Cooperative’s board unanimously approved the merger plan.

A letter mailed to all OrangeMadison co-op members and signed by 97 “concerned “co-op members” charged that “all possible solutions have not been explored in an openminded manner” by the board of directors.

Although the merger would eliminate the opportunity for farmers to price-shop between the two cooperr atives, Mr. Sanford said, the ini creased buying power of the combined cooperatives will offer its members “better prices.”

In addition, he said, it will result in cost savings through consolidation of management and field operations. The Orange-Madison co-op would close its Orange feed mill and shift, those operations to Culpeper, where there is plenty of capacity to handle the increased business, Mr. Sanford added.

The memberships of both cooperatives will meet next Wednesday, Dec. 19. The Orange-Madison Co-op will meet at 4 p.m. at the Orange County High School, with voting open until 6 p.m. The Culpeper Coop will meet at 7:30 p.m. at the Brandy Station fire hall. Approval of the merger will require a two-thirds vote of the cooperative members attending each meeting.