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1st
Farm Credit Services (1st FCS) opposes the proposed buyout
of Farm Credit Services of America (FCSA) by a Dutch
cooperative. Rabobank, headquartered in the Netherlands
intends to purchase FCSA.
“We believe the best way to serve the needs of farmers today
and in the future is for Farm Credit Services of America to
remain in the system,” said Wayne Gustafson, 1st FCS
President and CEO. The 1st FCS Board of Directors adopted a
resolution opposing the merger.
As a result, 1st Farm Credit Services supports the removal
of the statutory exit provision. “We believe the Farm Credit
System needs to continually assess and adapt to serve our
client’s needs,” according to Gustafson. 1st FCS plans to
communicate this position to the Farm Credit Administration
(FCA), Congress and key farm groups to identify and
implement needed legislative and regulatory changes.
“We want to make it clear that 1st FCS has no plans to leave
the System. We fully intend to serve our clients as we have
for the past 87 years,” Gustafson stated. The association
covers 42 Northern, Central and Western Illinois counties.
Farm Credit Services of America announced its intentions to
withdraw from the system and become a subsidiary of Rabobank
July 30. FCSA serves farmers and ranchers in Iowa, Nebraska,
South Dakota and Wyoming. The association does not
represent, control or direct activities in states outside
their chartered territory.
FCSA is one of 97 farm credit associations nationwide.
According to Rabobank officials, the acquisition will give
the Netherlands bank a leading position in agricultural
financial services in the Midwest.
1st Farm Credit Services is the leading provider of farm
real estate financing; operating loans with enhanced cash
management options; equipment and building leasing and
loans; farm appraisals; and a variety of risk management
products such as: multi-peril, revenue protection, hail and
credit life insurance.
Farm Credit
Services helps maintain and improve the quality of life in
rural America and on the farm through its constant
commitment to competitive lending, expert financial services
and advice, and a feeling of partnership with its clients. |
