Farm Credit Association boards vote to recommend merger
Fargo, N.D. — Providing reliable and consistent credit to agriculture and rural communities has been Farm Credit’s mission for 100 years.
In an effort to better expand opportunities for member-owners, the Boards of United FCS and AgCountry Farm Credit Services unanimously approved a merger proposal for the two associations at a joint session in Fargo on November 11. The Boards of Directors initially agreed to explore a merger of the two associations in June of 2016.
Next steps include a review and approval by AgriBank, the funding bank for the associations, and a regulatory review and approval by the Farm Credit Administration. A stockholder vote in each association is tentatively planned for spring 2017. The associations are on a projected timeline for a July 1, 2017 merger implementation date.
“This vote shows that our Boards feel pursuing the merger is in the best interests of our current and future member-owners, and that merging our associations will position us for greater long-term success,” says Greg Nelson, AgCountry Chair of the Board.
“Moving forward with the merger will strategically position the cooperative to be a relevant source of credit and financial services for farm families, agribusinesses and rural home owners for many years to come.” adds United FCS Chair of the Board Brad Sunderland.
Together, the merged organization would serve nearly 18,000 customer-members throughout 65 counties in Minnesota, North Dakota and Wisconsin, totaling more than $7 billion in assets.
As a member of the Farm Credit System, AgCountry Farm Credit Services is an independently owned and locally governed lending association that provides credit and financial services to more than 12,000 farmers and ranchers in 18 counties in eastern North Dakota and 25 counties in northwest and west central Minnesota. AgCountry also provides agribusiness loans and leases nationwide. Offices are maintained in 26 locations throughout the territory, with nearly 400 employees. For additional information on AgCountry FCS, visit www.agcountry.com .
United FCS is a member of the Farm Credit System, a nationwide network of banks and retail lending associations chartered to support the borrowing needs of U.S. agriculture and the nation’s rural economy. Serving over 6,000 customer-members, United FCS has a primary focus in a 22-county service area in West Central Minnesota and North Central Wisconsin providing loans, leases and a wide array of financial services through 12 branch office locations and 190 locally-based employees. For additional information on United FCS, visit www.unitedfcs.com.