Farm Credit Update

AgSouth Farm Credit returns record $32.7 million to members

AgSouth Farm Credit CEO William P. Spigener, Jr. recently announced that on March 24, 2008, the cooperative distributed a record $32.7 million in patronage to its members. More than $9.3 million of the total patronage was returned in cash, with the remaining $21.7 million designated as allocated surplus. The patronage return represents nearly 28% of the total interest earned by AgSouth for the year ending December 31, 2007.

According to Spigener, “Since 1991 AgSouth has put more than $315 million of our profits into members’ pockets. The 2007 patronage we returned is nearly 28% of interest earned by the association. This means that for every $1.00 paid in interest on an AgSouth loan, members received 28 cents back. In February, the association revolved nearly $12 million in qualified surplus to members from the 2002 surplus pool. This year our customers have seen more than $21.5 million dollars in cash returned to them through the patronage program.” Spigener attributes the strength of the patronage program to the strong financial position of the cooperative and the commitment of the association’s directors, management, and staff. [News release: Download 2008_patronage_release.doc ]

Peggy Jo Jones appointed to First Pioneer Farm Credit Board

First Pioneer Farm Credit recently announced the appointment of Peggy Jo Jones, of Boise, Idaho, as an outside director on its board of directors.

Jones is a consultant providing training and human resource services to Albertsons LLC, a major food and drug retailer.  Prior to her current role, Jones held positions of increasing responsibility with Albertsons over her 31-year tenure with the organization, most recently as vice president of human resources for its Southern California division, which includes 292 stores and two distribution centers and employs more than 30,000 associates.

Jones’s professional profile also includes the chairmanship of the board of directors for Northwest Farm Credit Services, one of First Pioneer’s sister associations in the national Farm Credit System.  The Northwest association, headquartered in Spokane, Washington, serves farmers and ranchers in Montana, Idaho, Oregon, and Washington.  In addition, Jones chaired that board’s compensation committee and served on its audit, finance, and financial services committees. [News release: Download PeggyJone_OutsideDirector_April18.doc ]

Carolina Farm Credit to issue patronage checks

Member-borrowers of Carolina Farm Credit soon will receive patronage refunds checks for 2007, Michael R. Morton, CEO, announced recently. The amount of patronage to be paid and revolved in the future for borrowers of Carolina Farm Credit will total nearly $18.7 million.  Borrowers will receive a refund of 20 percent of the interest that accrued on their loans in 2007.  A cash refund of $5.6 million will be paid, and the remainder will be placed in allocated capital accounts for future revolvement.

"Carolina Farm Credit had another successful year in 2007. We're pleased to be able to share our success with our borrowers by putting our profits in their pockets," said Tony Ragan, Chairman of the Carolina Farm Credit board.  "This is the twentieth consecutive year we've paid a patronage refund.  In addition, the board of directors plans to retire the allocated surplus we issued in 2002 totaling $10.3 million in the fall of 2008.  Since 1988, Carolina Farm Credit has declared patronage totaling more than $304 million to be paid to its member-borrowers through patronage refunds and retirements of allocated surplus." [News release: Download 2008_patronage_refund_press_release.doc ]

Carolina Farm Credit hosts Ag Leadership Conference

Carolina Farm Credit recently held its eighth annual Agricultural Leadership Institute in Asheville, NC at the Grove Park Inn. This educational conference brings together and celebrates young, beginning, and small farmers and was created to equip young and beginning farmers to meet the challenges of modern agriculture and to encourage the sharing of ideas and networking within the industry.  There were 30 participants this year, either farm couples or individuals from across Carolina Farm Credit’s territory, selected for their farm leadership and achievements.

This dynamic and interactive seminar is led each year by Dr. David Kohl, Professor Emeritus at Virginia Tech and professional speaker, focusing on “Mega Forces of Agriculture.” Dr. Kohn’s topics are designed to enlighten and help participants meet the daily challenges of modern agriculture while maintaining balance between family business, family life, and personal life, and included Population and Farming Trends, Finances & Credit, and the Golden Rules for Success in Business & Family.

“Each year I am amazed by the quality of the young, beginning and small farmers who attend this event”, says Mike Morton, CEO of Carolina Farm Credit.  “Their commitment to and passion for agriculture renews my faith that the future of North Carolina agriculture is in good hands.  By allowing opportunities to network and create relationships, we are hopeful that these young couples get much more from the weekend than the academic information provided.  I know that we at Carolina Farm Credit feel that building relationships with these young farmers helps our company create a link to agriculture’s future and allows us to stay connected to our customer base,” says Morton. [News release: Download Ag-Leadership_press_2008_no-couple.doc ]

FCS Financial awards $30,000 in scholarships

FCS Financial is pleased to announce the recipients of their 2008 Scholarships. Those receiving a $1,000 scholarship are Aaron Earley, Cameron; Adam Casner, Carrollton; Cayanne Schlueter, Carrollton; Rikki Thompson, Clinton; Chelsea Chamberlin, Cole Camp; Elizabeth Gayer, Columbia; Laura Mooney, Fredericktown; Alex Callow, Graham; Morgan Quinn, Hale; Mason  Ritter, Halfway; Dana White, Hardin; Kimberly Rohlfing, Hermann; Lauren Smithey, Lebanon; Elizabeth Miles, Leonard; Lillie Raasch, Liberty; Micah Parker, Lockwood; Ryne Watts, Macon; Rosalind Thiel, Marshall; Brandon Thiel, Marshall; Brett Jones, Mt. Vernon; Adam Coats, Mtn. Grove; Kate Crabill, Philadelphia; Kyra McNeal, Pleasant Hill; Ashton Starbuck, Queen City; Megan Westerhold, Rich Hill; Erica Bussell, Rogersville; Jamie Fitzgerald, Salisbury; Samuel Cope, Truxton; Brett Fitchpatrick, Wentworth; and William Kimbrough, West Plains

More than $150,000 has been distributed through the FCS Financial Scholarship Program since it was established by the FCS Financial Board of Directors in 2004.  The program is designed to encourage and support higher education for dependents of FCS Financial members. To qualify, applicants must be a graduating senior at a Missouri high school and a child or grandchild of an FCS Financial member. Additionally, they must attain a 2.5 or higher GPA, an ACT score of at least 26 or rank in the top 20 percent of their senior class. The scholarship applicants are then judged by a non-partisan committee on leadership roles, work experience, community involvement and essays.

Bob Bahl named President and CEO of AgCountry Farm Credit Services

Commitment to customers and the future of agriculture and Rural America will continue to be the top priority for AgCountry Farm Credit Services under new leadership. Bob Bahl, who has been with the Farm Credit System for 28 years, became the agricultural lender’s President and Chief Executive Officer effective April 1st.

Bahl was President and CEO of Farm Credit Services of Grand Forks for 14 years. He began his Farm Credit Services career as a tax specialist, and then moved to VP of Administration, Chief Credit Officer and Executive VP before being named CEO in 1993. Bahl has served as Chief Operating Officer for AgCountry Farm Credit Services since April 1, 2007, under the joint management agreement of the merger process between FCS of Grand Forks and AgCountry Farm Credit Services. The merger was final on January 1, 2008. 

“I am excited to be a part of a company with such a passion for agriculture, “said Bahl. “Our talented staff continues to provide a depth of knowledge that is second to none in the agriculture industry, while providing the best quality products and financial services available to our customers.” [News release: Download bob_bahl_president_and_ceo4.doc ]

First Pioneer stockholders re-elect Dickinson, Gilbert, Lyman, and Wells to the board

Stockholder-customers of First Pioneer Farm Credit, ACA, re-elected four northeastern agricultural producers to its board of directors.  As a customer-owned lender dedicated to supporting agriculture, commercial fishing and forest products, these four individuals will continue as part of the 13 member board of directors that provide governance for the cooperative.

• John Dickinson operates Ideal Dairy Farm in Hudson Falls, NY with his wife, Denise, and parents, Nate and Lorraine.  Together they own and manage a 700-cow dairy farm and crop 2,000 acres of farmland.
• Andy Gilbert, a dairy farmer from Potsdam, NY, owns and manages Adon Farms, in partnership with his brother, Tony.  Together, the partners run a 750-cow operation while raising their own replacements, forage, and corn grain.  They also haul their own milk.
• John Lyman III is executive vice president of The Lyman Farm, Inc. in Middlefield, CT, an eighth-generation 1,100-acre diverse family farm, including a 400-acre orchard; a pick-your-own operation; agritainment; a thriving farm market, and an expanding bakery and pie business.
• Lyle Wells operates Wells Homestead Acres in Riverhead, NY with his children Jessica, Matthew, and Logan.  The eleventh-generation operation produces 85 acres of vegetables and cut flowers for sale through a variety of wholesale brokers into local supermarkets, restaurants, and institutions.  The family also markets directly to local farm stands.

“On behalf of the entire First Pioneer family of customers, directors, and employees, I congratulate these outstanding individuals on their re-election,” First Pioneer President and CEO Bill Lipinski said.  “All are proven leaders in their industries and dedicated to keeping First Pioneer at the forefront of successful companies serving Northeast agriculture, commercial fishing, and the forest products industry.” [News release: Download press_release_director_election_results_2008.doc ]

CoBank donates $2,500 to Leadership Hendricks County

eadership Hendricks County has received a $2,500 check from CoBank on behalf of Kevin Still, a director on the cooperative bank’s board. Still is also the CEO and treasurer of Co-Alliance LLP, a Danville-based farm supply, energy, and grain and swine marketing partnership of Midland Co-op, Inc., IMPACT Co-op, Inc., Laporte County Coop, Inc., and Frontier Co-op, Inc.

Since 1993, Leadership Hendricks County has given citizens the background and inside information they need to take on effective leadership roles in the local community. The donation will go toward helping the organization reach a broader and more diverse group of potential leaders. Money will be used to expand access to materials, speakers and other opportunities.

Leadership Hendricks County receives the gift as part of CoBank’s corporate giving program, which allows employees and board members to direct bank donations to their choice of nonprofit organizations and programs. Through the program, CoBank donated more than $1 million last year to benefit local communities where its employees and directors live and work. [News release: Download still_lhc.pdf ]

CoBank donates $2,500 to Indiana Agricultural Leadership Institute

The Indiana Agricultural Leadership Institute (IALI) has received a $2,500 check from CoBank on behalf of Kevin Still, a director on the cooperative bank’s board. Still is also the CEO and treasurer of Co-Alliance LLP, a Danville-based farm supply, energy, and grain and swine marketing partnership of Midland Co-op, Inc., IMPACT Coop, Inc., Laporte County Co-op, Inc., and Frontier Co-op, Inc.

The IALI was founded in 1983 to facilitate communication and create networks within Indiana’s agricultural industry and build support among business, industry, production, education and government. The money will go toward supporting IALI’s training program, helping the institute build strong leadership skills and encouraging the public dialogue.

“I strongly support CoBank’s philosophy of giving back to the communities in which we operate,” Still said. “I’m particularly proud that the bank is underwriting IALI and its efforts to promote Indiana’s agricultural industry.” [News release: Download still_iali.pdf ]

AgCredit of South Texas distributes patronage to customers

AgCredit of South Texas, ACA recently distributed $737,475 in patronage payments to its customers. The patronage refund effectively reduces the interest rate paid by borrowers last year by 64 basis points, or 0.64 percent.

This is the second consecutive year that AgCredit of South Texas has returned a portion of its annual earnings to its borrowers. With this latest patronage refund, the rural lender has distributed more than $1.58 million in patronage — nearly half of its net income — to its customers during the past two years.

“It is a great pleasure to share our earnings with our borrower-stockholders when we do well, which we did last year,” said Larry Wade, AgCredit of South Texas chief executive officer. “Patronage payments are an important benefit of doing business with a cooperative.”