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.