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Frontier Farm Credit is hosting its annual GrowingOn® meetings across eastern Kansas, beginning in December

OMAHA, Nebraska – Frontier Farm Credit is hosting its annual GrowingOn® meetings across eastern Kansas, beginning in December.

David Widmar, an agricultural economist and co-founder of Agricultural Economics Insights (AEI), will focus on key trends impacting production ag and the strategies that will position producers to succeed in this environment.

Below are the locations and dates for Frontier Farm Credit’s GrowingOn meetings. All meetings are free, but pre-registration is required. Registration details can be found at GrowingOn.com/Kansas or by calling 1-800-397-3191.

Location Date Speaker Topic
Pittsburg December 9, 2019 David Widmar The Farm Economy Outlook: Preparing Your Farm for 2020 and Beyond
Ottawa December 10, 2019 David Widmar The Farm Economy Outlook: Preparing Your Farm for 2020 and Beyond
Seneca December 11, 2019 David Widmar The Farm Economy Outlook: Preparing Your Farm for 2020 and Beyond
Manhattan December 12, 2019 David Widmar The Farm Economy Outlook: Preparing Your Farm for 2020 and Beyond

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 to Distribute 2018 Cash-Back Dividend of 90 basis points for total payout of approximately $15.5 Million

Cooperative has returned nearly $96.1 million to farmers, ranchers since 2004

OMAHA, NEBRASKA – At a time when agricultural producers face economic challenges, Frontier Farm Credit has approved its largest cash-back dividend to date. The financial cooperative’s eligible customer-owners will receive a 2018 cash-back dividend equal to 0.90 percent of a customer’s eligible daily loan balance for an estimated total payout of approximately $15.5 million.

Since 2004, Frontier Farm Credit has returned nearly $96.1 million to farmers, ranchers and agribusinesses in eastern Kansas.

“As a mission-driven cooperative, one of our key goals is to maintain the financial strength to serve agriculture and rural America through all economic cycles. We strive to be a dependable lender through every ag cycle, but especially through the tough ones,” said Mark Jensen, president and CEO of Frontier Farm Credit. “There is no better time than today to put our financial strength to work for our customer-owners.”

Earlier this year, the Board of Directors for Frontier Farm Credit announced that it was enhancing its patronage program to share more of the cooperative’s earnings with eligible customer-owners. It intends to target a cash-back dividend of 90 basis points for the foreseeable future, barring unforeseen events and significant changes in the environment. The earnings retained by Frontier Farm Credit are used to build the cooperative’s financial capacity to continue serving agriculture.

The 2018 dividend checks will be mailed to eligible customer-owners in March 2019. The Board of Directors has approved a cash-back dividend program for 2019, with the amount of the distribution to be decided in December 2019.

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 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.