The Boards of
Directors for three Farm Credit Associations serving farmers, ranchers, and
agribusinesses across eight states approved a collaboration agreement this week
aimed at better serving their respective customers. AgCountry Farm Credit
Services (AgCountry), Frontier Farm Credit, and Farm Credit Services of America
(FCSAmerica) signed a collaboration contract to become effective no earlier
than April 1, 2024.
The Directors
have agreed to share key functions, such as leadership, strategic planning, and
technology, while retaining local, independent Boards, offices, services, cash
patronage programs, and more.
“Our three
Boards are comprised mostly of farmers and ranchers. We were elected by our
fellow member-owners to make decisions ensuring our Associations fulfill their
mission to current and future producers,” said Lynn Pietig, chair of
AgCountry’s Board of Directors. “Each Association enters this collaboration in
a financially strong position. By working together, we can achieve benefits of
scale that make us even stronger.”
The
collaboration is expected to facilitate cost efficiencies, new market
opportunities, and the ability to provide additional resources for specialized
programs, industry insights, and technology to meet the diverse needs of all
segments of agriculture.
“Continual
improvement is vital to the long-term success of any farm or ranch,” said Shane
Tiffany, chair of the Frontier Farm Credit Board. “Our financial cooperatives
are no different. As agriculture gets more complicated and our risks and costs
as producers increase, we need to know we can count on our lender. This
collaboration better positions us for the future.”
Together, these
three Farm Credit Associations serve more than 85,000 producers across Iowa,
Kansas, Minnesota, Nebraska, North Dakota, South Dakota, Wisconsin, and
Wyoming. At 2022 year-end, AgCountry reported loan volume of $11.6
billion, Frontier Farm Credit, $2.6 billion, and FCSAmerica, $38.3
billion.
“There are many
examples of successful collaborations in the Farm Credit System,” said Nick
Jorgensen, chair of the FCSAmerica Board. “This one is unique in allowing each
Association to share functions where it makes sense, yet retain the local
experience we all have come to value from our individual cooperatives and
financial teams.”
Shareholders of
the three Associations will receive additional information regarding this
collaboration.
About
the Collaborating Associations
As part of the
Farm Credit network of cooperatives, the three Associations provide credit,
risk management and/or financial services to their customers.
AgCountry is
headquartered in Fargo, North Dakota, and serves 25,000 farmers, ranchers, and
agribusinesses in portions of Minnesota, North Dakota, and Wisconsin.
Frontier Farm
Credit serves 6,700 producers in eastern Kansas, where it has headquarters in
Manhattan.
FCSAmerica,
headquartered in Omaha, Nebraska, serves 55,000 producers in Iowa, Nebraska,
South Dakota and Wyoming.
Combined, the
collaborating Associations have nearly $60 billion in assets: AgCountry, $13
billion; Frontier Farm Credit, $2.8 billion; and FCSAmerica, $43.3 billion.
