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Frontier Farm Credit Announces Enhanced Patronage Program

The financial cooperative has returned $80.7 million to customer-owners since 2004

OMAHA, NEBRASKA – Frontier Farm Credit today announced enhancements to its patronage program to share more of the cooperative’s earnings with eligible customer-owners.

At its August meeting, the Frontier Farm Credit Board of Directors approved targeting a cash-back dividend equal to 0.90 percent of a customer’s eligible average daily loan balance, the highest payout since the patronage program’s inception in 2004. The enhancement will be effective for the 2018 fiscal year, and eligible customers should see the higher cash dividend payout in their March 2019 patronage distributions.

Jennifer Gehrt, Frontier Farm Credit board chair, said, “We assess the cooperative’s financial strength each year to ensure adequate capital levels. Once those are met, the board typically approves payment of a portion of net income back to our stockholders. Barring an unforeseen event or significant change in the environment, the outlook for our cooperative positions us to provide more certainty around our patronage intentions going forward. We think it is important that our customer-owners know they can count on their cooperative in these challenging times for agriculture.”

Frontier Farm Credit has returned $80.7 million since 2004 to its customer-owners in eastern Kansas. “It’s one of the most tangible benefits of our cooperative business model,” Gehrt said. “Those dividends flow to rural communities all across our service area.”

Craig Kinnison, chief financial officer at Frontier Farm Credit, said, “We’ve spent years building the association’s financial strength and operating efficiencies. Our capital base has never been stronger, and the ability to stress test our loan portfolio under a variety of scenarios gives us confidence to target a higher level of patronage for our current planning cycle.”

The Frontier Farm Credit board annually approves a capital plan for the association based on projected asset levels, earnings, economic conditions, possible loan losses and other contingencies. The board’s patronage payout assumes the association meets its financial goals and other factors do not adversely impact the cooperative.

About Frontier Farm Credit

Frontier Farm Credit is proud to finance the growth of rural America, including the special needs of young and beginning producers. With $2.0 billion in assets and $440.7 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. 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.

Farmland Values Stabilize in 2017 in Grain Belt States

Frontier Farm Credit says risk remains for downward pressure in real estate market

OMAHA, NEBRASKA – (January 18, 2018) – Farmland values stabilized in 2017, a reflection of continued market demand for quality land in states served by Frontier Farm Credit and Farm Credit Services of America (FCSAmerica).

Sales of higher quality farm ground contributed to an uptick in average sale prices in 2017. Where prices dropped at local or regional levels, sales generally involved lower quality land. Average sale prices rose slightly in eastern Kansas, Iowa, Nebraska and South Dakota. Wyoming had too few sales to identify a trend.

FCSAmerica, in association with Frontier Farm Credit, compiles sales records and, twice a year, appraises 71 benchmark farms. The cooperatives’ objective is to track real estate values without the influence of changes in land quality on sale prices. Iowa and Wyoming saw modest overall increases in real estate values in 2017, while eastern Kansas, Nebraska and South Dakota declined.

Below is the average state-by-state change in benchmark farm values through 2017. The number of benchmark farms in each state is indicated by parentheses.

State Six Month One Year Five Year Ten Year
Iowa (21) 1.4% 1.8% -12.8% 82.1%
Kansas (7) -0.1% -3.2%
Nebraska (18) -​2.8% -2.8%​ -5.1%​ 130.2%​
South Dakota (23) -1.3% -3.1% 15.6% 123.3%
Wyoming (2) 2.5% 3.2% 38.5% 30.1%

“Overall real estate values have stabilized in the past year, but continued low profit margins and potential for an increase in sales activity could put downward pressure on real estate values,” said Tim Koch, chief credit officer for Frontier Farm Credit and FCSAmerica.

Farmland values remain well below the market’s peak of three to four years ago. Overall, values are off about 20 percent.

EASTERN KANSAS

One benchmark farm increased in value, four declined and two were unchanged. The 3.2 percent decline in overall value for 2017 was due largely to the sole irrigated cropland represented among the benchmark farms. The value on the irrigated ground dropped 21 percent. Frontier Farm Credit has been tracking farm values since January 2015, when it began operating in alliance with FCSAmerica.

Public land auctions declined 31 percent compared to 2016 and total sales were down 46 percent.

IOWA

Eleven benchmark farms saw an increase in value in the last six months of 2017, while 10 showed no change.

Overall farmland sales activity was down 20 percent. However, public land auctions increased 2 percent compared to the previous year. The percent of auction “no sales” fell to 2.7 percent, down from 3.2 percent in 2016.

NEBRASKA

Five benchmarks farms increased in value, while two showed no change. The remaining 11 declined an average of 6.1 percent.

Total sales declined in 2017, with dry cropland dropping 15 percent and irrigated 25 percent compared to 2016. Public land auctions dropped 16 percent and auction “no sales” increased to 5.2 percent, up from 2.2 percent in 2016.

SOUTH DAKOTA

Values were unchanged on 14 benchmark farms in second half of 2017. Three farms saw an increase and six declined.

Total sales were down 18 percent compared to 2016. Public land auctions were down 16 percent and “no sales” increased to 6.1 percent, up from 3.2 percent.

WYOMING

The one cropland benchmark farm increased in value by 5.1 percent. The pasture unit saw no change in value in the last six months of 2017.

Sales have been and continue to be very limited in Wyoming.

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.