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MINNESOTA, WISCONSIN, ILLINOIS FARM CREDIT GROUPS DISCUSS MERGING
May 26, 2016
Wisconsin Ag Connection reports:
The boards of directors that serve the region's three main Farm Credit institutions have begun exploring the possibility of joining forces. On Tuesday, Badgerland Financial, AgStar Financial Services and 1st Farm Credit Services announced they are in the process of evaluating a potential collaboration with each other.
According to a joint release--which was signed by Badgerland CEO Diane Cole, AgStar CEO Rod Hebrink, and 1st Farm CEO Gary Ash--the three cooperatives combined would create the nation's third largest Farm Credit group with about $17 billion in assets.
"Once our research is complete, all three Boards of Directors will decide whether to move forward," the CEOs said in their memo. "If a merger is deemed appropriate, as cooperatives owned by our member-borrowers, our stockholders will receive further communications and have the opportunity to vote on the proposal."
The statement also noted that all three of the associations share the same values and commitment to rural communities and agriculture.
"For more than 100 years, Farm Credit has supported rural communities and agriculture with reliable, consistent credit and financial services and we're just as committed to that mission today and in the future," the release said.
Badgerland Financial, based in Prairie Du Sac, serves 33 southern Wisconsin counties with 17 locations. The co-op's loan volume between its more than 16,000 members is about $3.8 billion. AgStar Financial Services, headquartered in Mankato, Minnesota, has 13 branch offices in 69 counties in Minnesota and northwestern Wisconsin, while the Normal, Illinois-based 1st Farm Credit covers 42 counties in northern Illinois at 16 individual sites.
Board members say they have not established an exact time table for such a merger, but it could happen by April 2017.
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