Frontier Farm Credit Reports Slight Softening of Farmland Values in Last Half of 2018

Farm real estate market remains stable overall

Farmland values in eastern Kansas softened slightly in the last half of 2018, but remained stable overall.

While benchmark farmland values in eastern Kansas improved throughout 2018, the gain was modest in the last six months of the year. Cropland in 2018 saw a 0.6 percent increase in value; pasture gained 5.8 percent in value.

In the neighboring state of Nebraska, farmland values as a whole declined 1.0 percent in the last half of 2018 and 0.9 for the year. Iowa, which generally is on the leading edge of changes in the real estate market, declined 1.4 percent in the last six months of 2018, but were largely unchanged for the year.

“The softening of the market in the latter half of 2018 wasn’t unexpected and, in fact, it better aligns farmland values to profitability in the grain sector,” said Tim Koch, chief credit officer for Frontier Farm Credit. “The industry continues to be challenged by compressed margins. For producers who rent farmland, softening in the market will help their bottom line.”

Continued pressure on profit margins could lead to additional softening in 2019. However, the same factors that have helped to stabilize the market for the past three years remain in place, including interest rates near historic lows and strong demand for quality land that is in tighter supply.

The chart below reflects changes in farmland values for the benchmark farms that Frontier Farm Credit tracks in eastern Kansas. The number of benchmark farms is noted in parentheses.

STATE Six Month One Year
Kansas (7) 0.7% 2.8%

Frontier Farm Credit appraises its benchmark farms twice a year, in January and July. In addition, the cooperative compiles records from farmland sales. The cooperative’s objective in using the benchmark farms is to track real estate values without the influence of changes in land quality on sale prices.

About Frontier Farm Credit

Frontier Farm Credit is a customer-owned financial cooperative proud to finance the growth of rural America, including the special needs of young and beginning producers. With $2.1 billion in assets and $461.4 million in members’ equity, Frontier Farm Credit is one of the leading providers of credit and insurance services to farmers, ranchers, agribusiness and rural residents in eastern Kansas. Learn more at www.frontierfarmcredit.com.

Frontier Farm Credit elects one to the Board of Directors

Frontier Farm Credit Customer-Owners elect one to the Board of Directors

OMAHA, NEBRASKA (March 23, 2018) – Bill Miller, of Council Grove, Kansas, has been re-elected to the Board of Directors of Frontier Farm Credit, a financial cooperative serving eastern Kansas.

Miller and his wife, Debbie, run commercial Angus and Charolais cattle on their ranch. Miller also does communication work for U.S. Premium Beef, LLC.

Frontier Farm Credit stockholders elected Miller a four-year term, April 1, 2018, to March 31, 2022. He has been a Frontier Farm Credit director since 2008.

Frontier Farm Credit is a financial cooperative with a board that reflects the diverse agricultural backgrounds and interests of its customer-owners. The board is comprised of six elected customer-owners and one appointed director.

For full Frontier Farm Credit election results, visit frontierfarmcredit.com.

About Frontier Farm Credit

Frontier Farm Credit is a customer-owned financial cooperative proud to finance the growth of rural America, including the special needs of young and beginning producers. With more than $2 billion in assets and $420.1 million in members’ equity, Frontier Farm Credit provides credit and insurance services to farmers, ranchers, agribusiness and rural residents in eastern Kansas. Learn more at www.frontierfarmcredit.com.

For media and communications inquiries, please contact Judith Nygren, Corporate Communications & Public Relations Specialist, at 402.348.3346.

Frontier Farm Credit to Distribute $11.5 Million Cash-Back Dividend for 2017

Frontier Farm Credit to Distribute $11.5 Million Cash-Back Dividend for 2017

Cooperative has returned $80.7 million to farmers, ranchers since 2004

OMAHA, NEBRASKA – Frontier Farm Credit, a financial cooperative owned by farmers and ranchers, approved a 2017 cash-back dividend of $11.5 million for its eligible customer-owners.

Frontier Farm Credit has returned more than $80.7 million to producers in eastern Kansas since 2004.

“Cash-back dividends demonstrate the value of our unique cooperative business model,” said Mark Jensen, president and CEO of Frontier Farm Credit. “As agriculture works through a tough economic cycle, our customer-owners are sharing in the cooperative’s success, and can invest the dividends in their operations and local communities.”

The Board of Directors considers a number of business and economic factors in determining the amount of each year’s cash-back dividends, including the cooperative’s financial strength. The earnings retained by Frontier Farm Credit are used to build the cooperative’s financial capacity to continue serving agriculture.

The 2017 dividend checks will be mailed to eligible customer-owners in March 2018. The Board of Directors has approved a cash-back dividend for 2018, with the amount of the distribution to be decided in December 2018.

About Frontier Farm Credit

Frontier Farm Credit is a customer-owned financial cooperative proud to finance the growth of rural America, including the special needs of young and beginning producers. With nearly $2 billion in assets and $405.1 million in members’ equity, Frontier Farm Credit is one of the region’s leading providers of credit and insurance services to farmers, ranchers, agribusiness and rural residents in eastern Kansas. For more information, visit frontierfarmcredit.com.

Farm Credit Services of America and Frontier Farm Credit Announce President and Chief Executive Officer

OMAHA, NEBRASKA (September 19, 2017) – Farm Credit Services of America (FCSAmerica) and Frontier Farm Credit today named Mark Jensen as incoming president and chief executive officer of the customer-owned financial cooperatives. Jensen, the Associations’ chief risk officer, will assume his new role on November 1, 2017. He succeeds Doug Stark, who is retiring.

Jensen joined FCSAmerica in 1992 and has held senior vice president positions with the Association for the past 16 years. He was named senior vice president – chief risk officer in 2013. Jensen was instrumental in modernizing FCSAmerica’s credit process and implementing an enterprise risk management framework, and today provides executive leadership of the Associations’ risk management, credit and appraisal teams. He graduated from the University of Nebraska-Lincoln with a degree in agricultural economics.

About Farm Credit Services of America and Frontier Farm Credit

FCSAmerica and Frontier Farm Credit are customer-owned financial cooperatives proud to finance the growth of rural America, including the special needs of young and beginning producers. FCSAmerica provides credit and insurance services to farmers, ranchers, agribusiness and rural residents in Iowa, Nebraska, South Dakota and Wyoming. Frontier Farm Credit serves eastern Kansas. Learn more at www.fcsamerica.com and www.frontierfarmcredit.com.

For media and communications inquiries, please contact Judith Nygren, Corporate Communications & Public Relations Specialist, at 402.348.3346.