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Approximately
2,500 1st Farm Credit Services, ACA member-stockholders
are receiving checks in a $1.6 million stock retirement,
according to Wayne Gustafson, president and CEO.
As
part of the stockholder-approved consolidation of 1st
Farm Credit Services, FLCA and 1st Farm Credit Services,
PCA to form an Agricultural Credit Association (1st Farm
Credit Services, ACA) in late 2001, stockholders also
approved changes to the organizations’ capital bylaws
that allowed the board of directors to revise the capital
plan to reduce the required stock investment from a
maximum of $1,000 per client per organization to a
maximum of $1,000 per client for the combined
organization.
In
other words, for a client with both FLCA and PCA loans,
the stock requirement is now just two-percent of the
amount of the client’s loans, up to a maximum of $1,000.
This represents the lowest possible stock investment
allowed by federal regulations governing Farm Credit
institutions across the country.
"Our
ability to retire this stock is a direct reflection of the
organization’s financial strength and performance over
the past decade," Gustafson states. "With the
current low net farm income, we felt this was a
particularly appropriate time to return this stock to our
member-stockholders," he adds.
Since
1991, nearly $30 million of stock has been retired and
returned to the organization’s farmer-stockholders. |
