CoBank Again Named to “World’s 50 Safest Banks” List by Global Finance Magazine

DENVER (September 12, 2016) – CoBank, a leading cooperative bank serving agribusinesses, rural infrastructure providers and Farm Credit associations throughout the United States, has been named to Global Finance magazine’s list of the world’s safest banks for a sixth consecutive year.

Global Finance, which covers the financial services industry, publishes the “World’s 50 Safest Banks” list annually. Banks are ranked using a methodology that includes total assets and an evaluation of long-term ratings from major rating agencies. CoBank was first named to the list in 2011.

“Supporting rural communities and agriculture with reliable, consistent credit and financial services is central to CoBank’s mission,” said Robert B. Engel, CoBank’s chief executive officer. “Market conditions in many of the industries where our customers operate can be volatile, and our bank’s financial strength helps these critical rural businesses to grow and thrive. We are pleased to have earned this distinction for the sixth year in a row, as we believe it reflects our bank’s commitment to financial stewardship while providing exceptional value to our customers.”

The ranking will be published in the November issue of Global Finance. Further information is available at the magazine’s web site at www.gfmag.com.

About CoBank

CoBank is a $125 billion cooperative bank serving vital industries across rural America. The bank provides loans, leases, export financing and other financial services to agribusinesses and rural power, water and communications providers in all 50 states. The bank also provides wholesale loans and other financial services to affiliated Farm Credit associations serving more than 75,000 farmers, ranchers and other rural borrowers in 23 states around the country.

CoBank 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, rural infrastructure and rural communities. Headquartered outside Denver, Colorado, CoBank serves customers from regional banking centers across the U.S. and also maintains an international representative office in Singapore.

For more information about CoBank, visit the bank’s web site at www.cobank.com.

Contact

Arthur Hodges
Senior Vice President, Corporate Communications
303-740-4061
ahodges@cobank.com
   Dan Sullivan
Senior Manager, Corporate Communications
303-793-2324
dsullivan@cobank.com

Cobank Reports Second Quarter Financial Results

DENVER (August 4, 2016) – CoBank, a cooperative bank serving agribusinesses, rural infrastructure providers and Farm Credit associations throughout the United States, today announced financial results for the second quarter and first six months of 2016.

Net income for the second quarter increased 5 percent to $243.3 million, compared to $232.3 million in the second quarter of 2015. For the first six months of 2016, net income was $486.6 million, a 5 percent increase from $464.6 million in the same period last year. The increases in earnings primarily resulted from higher net interest income, partially offset by higher provisions for loan losses, increases in operating expenses and lower overall noninterest income in the 2016 period.

 Net interest income for the second quarter was $345.9 million, a 12 percent increase compared to $309.4 million in the same period last year. For the first six months of the year, net interest income increased 9 percent to $682.8 million, compared to $624.6 million for the first six months of 2015. The increases in net interest income were primarily driven by higher average loan volume and increased earnings on balance sheet positioning, somewhat offset by spread compression in the bank’s loan portfolio due to continued strong competition and a higher cost of short-term debt.

Average loan volume rose 14 percent in the second quarter to $92.4 billion, from $81.1 billion in the same period last year. For the first six months of 2016, average loan volume rose 13 percent to $91.1 billion, from $80.9 billion in the same period last year. The increases resulted from higher levels of borrowing from affiliated Farm Credit associations, agricultural cooperatives, other food and agribusiness companies, rural electric cooperatives, and rural communications service providers.

“We’re pleased with both the quarterly and year-to-date results of our business, including solid growth in our portfolio across all of our operating segments,” said Robert B. Engel, CoBank’s chief executive officer. “In addition to loan growth, CoBank’s profitability, credit quality and liquidity all remain strong. Most importantly, the bank continues to fulfill its mission by providing dependable credit and financial services to rural industries.”

At quarter-end, 0.63 percent of the bank’s loans were classified as adverse assets compared to 0.71 percent at March 31, 2016. Nonaccrual loans decreased to $115.4 million at June 30, 2016 from $212.8 million at March 31, 2016. The bank’s allowance for credit losses totaled $628.3 million at quarter-end or 1.32 percent of non-guaranteed loans when loans to Farm Credit associations are excluded.

Capital levels remain well in excess of regulatory minimums. As of June 30, 2016, shareholders’ equity totaled $8.6 billion, and the bank’s permanent capital ratio was 14.9 percent, compared with the 7.0 percent minimum established by the Farm Credit Administration (FCA), the bank’s independent regulator.

During the quarter, the bank redeemed at par plus accrued interest all of its outstanding 7.875 percent subordinated notes due in 2018, totaling approximately $405 million. The bank also issued $375 million in preferred stock. The new Series I non-cumulative perpetual preferred stock has a fixed dividend rate of 6.25 percent until October 1, 2026, after which the dividends will accrue at a floating rate.

“We continue to monitor the capital markets and capital regulations in order to optimize the effectiveness, quality and cost of our third-party capital, which enhances our lending capacity and our ability to serve the borrowing needs of our customers,” said David P. Burlage, CoBank’s chief financial officer.

At quarter-end, the bank held approximately $30.5 billion in cash and investments and had 200 days of liquidity, which was in excess of FCA liquidity requirements.

Engel noted that, despite strong financial results in the first half of the year, the bank continues to face challenges that have the potential to negatively impact earnings and overall financial performance over the balance of the year.

“CoBank’s margins remain under pressure due to historically low interest rates as well as intense competition in the banking and finance industries for the business of our customers,” Engel said. “In addition, it is possible we will see deterioration in credit quality as a result of lower commodity prices, a stronger dollar and other economic and geopolitical events or trends that impact many of our
borrowers.

“Nonetheless, we remain highly confident in the overall financial condition of CoBank and in our ability to meet the needs of our customers. We continue to focus on building the long-term strength of the organization and on fulfilling our vital mission in rural America.”

About CoBank

CoBank is a $125 billion cooperative bank serving vital industries across rural America. The bank provides loans, leases, export financing and other financial services to agribusinesses and rural power, water and communications providers in all 50 states. The bank also provides wholesale loans and other financial services to affiliated Farm Credit associations serving more than 75,000 farmers, ranchers and other rural borrowers in 23 states around the country.

CoBank 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, rural infrastructure and rural communities. Headquartered outside Denver, Colorado, CoBank serves customers from regional banking centers across the U.S. and also maintains an international representative office in Singapore.

For more information about CoBank, visit the bank’s web site at www.cobank.com.

Contact

Arthur Hodges
Senior Vice President, Corporate Communications
303-740-4061
ahodges@cobank.com
   Dan Sullivan
Senior Manager, Corporate Communications
303-793-2324
dsullivan@cobank.com

Peter Nelson named Agriculturist of the Year

Peter Nelson named Agriculturist of the Year

Coachella Valley farmer honored by California Women for Agriculture

Denise Goolsby

The Desert Sun

Longtime Coachella Valley farmer and citrus grower Peter Nelson was named Agriculturist of the Year by the local chapter of California Women for Agriculture.

CWA’s annual “Farm to Fork” dinner—which featured locally grown salad, including Desert Mist Farms romaine ribs, date Carpaccio, charred Prime Time peppers with citrus vinaigrette – and a deconstructed lemon tart with desert lemon curd – is a celebration of the valley’s agriculture community and the desert’s bounty.

Wong Farms tomatoes and Coachella Valley green beans accompanied the main course of forest mushroom-stuffed chicken.  Table favors included jars of homemade lemon marmalade from Coachella Valley FFA and tangerine pistachio biscotti made by the Desert Sandblasters 4-H Club, boxes of Coachella Valley dates, courtesy of the California Date Commission and beautiful flower centerpieces made by members of the Indio FFA Chapter.

Lemons and grapefruit from Wonderful Citrus decorated a farmsy-themed table sitting below a sign that read, “Eating if an Agricultural Act.”  American AgCredit provided the wine.

The program was emceed by CWA Coachella Valley Chapter co-president Ellen Way, who recognized previous Agriculturists of the Year recipients in attendance, including historian Pat Laflin, Desert Mist Farms general manager Adrian Zendajas, Desert Mist Farms president Jeff Percy and Peter Rabbit arms President/CEO John Powell Jr.

“George Washington once said that, ‘Agriculture is the most helpful, most useful and most noble employment of man,’ “Way said.  “Tonight, we’re proud to honor one such nobleman…Peter Nelson.”

Nelson, who was working with grape crews for Superior Farms in Bakersfield, moved to the desert with the company and wife Darlene in 1987.  After Superior was sold to Sunworld, he became general manager for Jack and Patricia Crocker’s farm in Coachella, where he learned to farm dates “with some excellent advice from (longtime date growers) the Laflins and Jensens.”  The Crockers also farmed citrus and grapes.

It was during this time that longtime valley water rights champion Lowell Weeks recruited Peter for consideration to replace a retiring Dorothy Nichols as a Coachella Valley Water District board member.  Weeks served as general manager-chief engineer of CVWD from 1956 to 1986, overseeing dramatic change from predominately an agricultural irrigation agency serving farms in the lower valley to a multifaceted water-related services district – domestic water, sanitation and recycled water – serving much of the Coachella Valley.

Nelson was appointed as a CVWD board director in June 2000 and has been there ever since, serving six years as president.

Nelson, who served for 14 years on the Salton Sea Authority and is currently a member of the Colorado River Board and the California Farm Water Coalition, now farms lemons at Thermal Plaza Nursery and property in the Imperial Valley that is now Wonderful Citrus.

Powell, who serves as president of the board of the water district, introduced his colleague and longtime friend praising the work Nelson has done protecting the valley’s imported water supply.

“Peter is fighting for the rights of the water in the Coachella Valley that benefits everybody in the valley,” Powell said.  “It is the lifeblood – not just farming, but the entire lifeblood of this valley.  If we don’t fight for it, someone is going to take it away from us.  This is something that’s been going on for 100 years – so we’re just the latest in a long string of folks that are fighting for the water…It’s a complicated time, there’s not enough to go around, so thank you, Peter, for fighting for our water.”

Nelson thanked Powell and commended the students on their achievements.

“I know all of you scholarship recipients are thinking that you want to go to school, you want to get A’s, well, I look at my life kind of by ‘F’s,’”, Nelson said as the audience broke out in laughter.  “Not failures – but I think in terms of faith, family, farm and friends.”

Nelson, who followed his father into farming, said his dad first came to the Coachella Valley in 1972 “to see what the Coachella Valley was doing about water and what they were doing with the drip irrigation, so he came down, he learned quite a bit, he went back up north and implemented a lot of practices he heard about and saw here in the Coachella Valley.”

He wrapped up by saying, “I pray that you have great crops, great yields and that your thirst is quenched,” the latter a nod to the Biblical story of Jesus meeting a Samaritan woman at a water well.

Funding Future Farmers

Agricultural education is one of CWA’s top priorities.  “If we want the United States to continue to feed itself and the world, we must invest in education and inspiring future generations of farmers,” said Stephanie Sobotka, co-president of the Coachella Valley Chapter of California Women for Agriculture.

Five local high school seniors were awards CWA scholarships — $3,000 each renewable each year of college with bonuses for good grades – funding that will help these students further their education in the field of agriculture.

Dante Calderon, La Quinta High School, has been a member of Desert Sandblasters 4-H Club and currently serves as the club’s president.  Dante, who was accepted into Chico State University, plans to enter school as a crops/horticulture/land management major.  Dante also receive a $500 4-H scholarship.

Aleena Duran, Indio High School, is planning to attend Cal Poly Pomona with the goal of becoming an Ag teacher.  She will receive the State FFA Degree – only three percent of the 76,000 California FFA members achieve this highest of FFA degrees.

Alexander Gallardo, Indio High School, has served as Indio Chapter FFA chapter reporter, vice president and chair.  Alexander has earned the State FFA degree and has received numerous leadership, showmanship and landscape contest awards.  He plans to attend Cal Poly San Luis Obispo and major in Ag Science with the goal of becoming an Ag instructor.  Alexander also received a $2,500 American AgCredit scholarship.

Lilliana Lopez, Indio High School, served as an Indio Chapter FFA officer and has been accepted into Fresno State, where she plans to pursue a degree in animal science/livestock management.  She wanted to become an Ag teacher and “help students who are truly interested in the future of agriculture.”  Lillian was also awarded the inaugural Barbara W. Allison Scholarship in remembrance of Barbara “Bobbie” Allison, one of the founders of CWA.

Alexander Paz, Indio High School, served as treasurer and barn manager for the Indio FFA Chapter.  He plans to become a plant or crop manager.

Riverside County Supervisor, John Benoit and Indio Mayor Glenn Miller – who was also representing the office of State Sen. Jeff Stone – presented certificates to each of the students.

La Quinta High School graduate Cassie Bullock, who has been a recipient of a CWA scholarship since 2009 – she graduated with a plant science degree and a minor in chemistry from Cal Poly Pomona and is now in a doctoral program at UC Davis – took to the podium and wished the students luck in their studies.

“When I was in high school, I had no idea what an impact this scholarship would have on my career and who I am today,” Bullock said.  “When I started college, my mom lost her job and she was in no position to help me financially, so this scholarship really helped me get through college and also, it acted kind of like a parent in a way…you get bonuses for getting good grades…It’s a huge incentive to do really well in school and it also boosted my confidence in myself.”

Before Way introduced Coachella Valley High School Ag instructor Vanessa Encinias, who would give an update on the school’s Agriculture & Natural Resources Academy, she lauded long-time CWA member and supporter Margit Chiriaco-Rusche for “leading the charge” to rebuild the school’s farm.

“I know there’s a lot of people in the room who worked on that farm as students and loved that program…and the farm needs our help,” Way said.

“We have been in the process of a huge revitalization of the ag academy at CVHS campus,” Encinias said.  “The district office has recently approved a half million dollars to begin the process of cleaning that facility up, getting the architectural plans approved by the city, moving forward.  We’re looking at a new greenhouse, a new animal husbandry unit, new curriculum….really giving these kids the agriculture, natural resources education that they deserve.”

“The goal of the program is not just the facilities – it’s also taking that program and turning it into a state-of-the-art model that can be used across the state and hopefully nationwide,” Encinias said.

For more information about the Ag program at Coachella Valley High, or to donate toward the farm revitalization efforts, call (760) 399-5137 and reference the ANR Academy when calling.

Growing & Financing Your Vineyard & Wine Business

GROWING & FINANCING YOUR VINEYARD & WINE BUSINESS

Market thoughts for new and experienced wine grape growers and winemakers

BY W. TERRY LINDLEY, CHIEF MARKETING OFFICER, AMERICAN AGCREDIT

Financing a vineyard or a winery?  It is typically high risk.  Risk for the business owner.  Risk for the lender.  Risk from the weather.  And risks with the market.  The variables are numerous.

Vineyard financing is typically dependent on vineyard management ability, parcel size, land prices, site, variety, financial position, earnings history of the owner, as well as the financial strength of other entities involved.  Winery financing typically centers around operating, equipment, real estate and construction loans to finance the winemaking facility and contents, and to cover the production cycle and inventory.

On top of this, financing estate vineyards and small wineries can present additional challenges because they are a diverse group that often has a unique perspective on business growth and marketing.

In all cases, the capital needs are intensive. And because the variables are so interdependent, investors and entrepreneurs who are relatively new to the wine industry need to know and understand what those business risks are, what the financing needs might be, and most importantly the time that’s needed to ensure success over the lifecycle of the wine business. Oftentimes, it takes two to three years before new vines really start producing.

CRAFTING A SUCCESSFUL WINE BUSINESS

California produces 90 percent of American wine and grows nearly 400 agricultural products. Within this, the North Bay is the state’s top wine grape producing region. As more and more vineyards are planted in the area, there are a myriad of considerations that should be assessed in order to make the business successful and allow it to thrive.

First, a good business plan must include a balance of capital, proven production ability in the vineyard/winery industry, and strong market knowledge. At the same time, be cautious about growth expectations. Other considerations include:

DO YOUR MARKET RESEARCH

• Today’s Millennial crowd is adventurous and open to trying new California wines not typically found in their parents’ cellars. They’re also looking at issues around sustainability, and tasting the local region’s unique wines.

• Not long ago, Cabernets and Chardonnays were the biggest sellers. But according to recently released data, sparkling wine has shown nearly 9% growth over last year, with imports up in the double digits.

• What grapes are most successful in your selected territory, and how are those existing businesses in the area maximizing that?

LEARN FROM THE MISTAKES/ SUCCESS OF OTHERS

• What percentage of expected annual sales can properly support an operating loan? And why? (50% is considered maximum)

• Find those organizations that can provide resources, such as the Wine Institute.

• How are the wine industry peers in your area managing their risk and business partnerships?

RESEARCH THE RIGHT LENDER

• Do they understand what you need as an agricultural business?

• Who offers the best options for financing for your operating cycle and real estate, leasing for your equipment and barrels, and crop insurance for your grapes?

• Does the lender offer adjustable or fixed rates, and can tailor a payment structure to the cash flow of your vineyard or winery?

Published research can aid in understanding the industry and how it relates to your business. These include:

• The recently-released “Winery & Grower Benchmarking Report”, compiled by Farm Credit, Turrentine Brokerage and Moss+Adams.

• The California Sustainable Winegrowing Alliance’s (CSWA) program has become a global model for sustainability, and it covers 227 best management practices for sustainable winegrowing and winemaking.

Financing your vineyard and wine business with the right lender is an important step. Partnering with the right people will help your achieve success.

Farm Credit Testifies Before Senate Ag Committee

FOR IMMEDIATE RELEASE

 

Farm Credit Testifies Before Senate Ag Committee

Agriculture and Rural Communities’ Need for Reliable and Consistent Credit Highlighted in Testimony

Washington – May 19, 2016 – Farm Credit participated today in the Senate Committee on Agriculture, Nutrition and Forestry’s full committee hearing titled, “The Farm Credit System: Oversight and Outlook of the Current Economic Climate.”

Farm Credit Services of America CEO Doug Stark testified about the importance of Farm Credit’s broad mission to serve rural communities and agriculture and how Farm Credit is working with customers during the current downturn in the agricultural economy. The Committee also heard from Michigan farmer and U.S. Army veteran Jed Welder, Farm Credit Administration board members Kenneth Spearman, Dallas Tonsager and Jeffery Hall, along with representatives of the commercial banking industry.

In addition to those testifying in-person today, nearly 80 groups representing farmers, ranchers, farmer-owned cooperatives and other agribusinesses, rural infrastructure providers and rural communities submitted statements for consideration by the committee.

“Farm Credit exists to serve agricultural and rural communities in good times and bad. Unfortunately, there are challenging economic indicators ahead,” said Stark. “It’s times like these that highlight the importance of Farm Credit—to remain that financial partner to producers and rural communities when the times get tough. We’ve been in our rural communities preparing our borrowers to weather the storm, and we’ll be here to see them through to the other side.”

Similar to the producers Farm Credit serves, the System has built financial strength in anticipation of the economic cycle through diversification in loan geography, industry and size.

“Farm Credit’s mission is to support rural communities and agriculture, irrespective of the economic climate,” said Stark. “We saw this downturn in commodity prices coming and have been building financial strength to make sure we can continue to fulfill our mission and support our customers.”

Low commodity prices coupled with high input costs are putting pressure on farmers and ranchers. Farm Credit has been working to make sure its customers have accurate information about the situation and are able to make good business decisions. Helping to somewhat offset the current price squeeze, debt-to-asset ratios on U.S. farmers are below the 30-year average and well below the levels seen in the mid-1980s. Also in contrast to the devastating downturn agriculture experienced 30 years ago, interest rates—and therefore debt costs—remain low.

“Farm Credit’s philosophy on credit today is this: we know our customers well, understand and respond to their needs and work cooperatively with them to analyze and structure our transactions to give them the best chance to succeed,” said Stark.

Michigan farmer and U.S. Army veteran Jed Welder also weighed in on the current economic conditions in agriculture and the value of Farm Credit. “This is a challenging time for farmers like me across the country. Right now, we are planting corn and soybeans with prices very near breakeven,” said Welder. “Having a lender that works with me, that knows my farm and the challenges I face, is more important than ever.”

Welder explained how he relied on Farm Credit, saying “They understood what I wanted to do and what I needed to run my operation, they made good, solid recommendations and over time became a trusted partner.”

Farm Credit is well known for its mission providing financing to all types of U.S. farmers and ranchers. In addition, Farm Credit’s agricultural mission includes financing aquatic producers, many farmer-owned cooperatives and other agribusinesses, and U.S. agricultural exports. A constant supply of credit to these areas has helped make agriculture one of the driving engines for the U.S. economy and allows U.S. agricultural producers to feed the world.

Farm Credit’s mission beyond agriculture is just as important. Rural homebuyers face obstacles unknown in more urban settings and Farm Credit provides loans tailored to these unique circumstances. Farm Credit also provides financing for companies that provide vital infrastructure to rural communities, helping bring clean water to rural families, reliable energy to farms and rural towns, and modern, high-speed telecommunications that connect rural America to the rest of the world. Modern infrastructure makes rural communities competitive, provides jobs, and helps improve the quality of life for rural families.

The complete hearing can be viewed at http://www.agriculture.senate.gov/hearings.

About Farm Credit

Farm Credit supports rural communities and agriculture with reliable, consistent credit and financial services, today and tomorrow. Farm Credit has been fulfilling its mission of helping rural America grow and thrive for a century by providing farmers with the capital they need to make their businesses successful and by financing vital infrastructure and communication services. For more information about Farm Credit please visit www.farmcredit.com.

###

 

Media Contacts:

Jennifer Dulles

DStreet for Farm Credit Council

jdulles@dstreetpr.com

(303) 956-0001

 

Margaret Fogarty

Farm Credit Council

margaret.fogarty@fccservices.com

(720) 935-1324

 

American AgCredit-sponsored Leaders Recognized as Top 100 in Agriculture

SANTA ROSA, CA – Out of more than a thousand people and organizations submitted, California FarmLink and FFA dairy breeder Carly Olufs were recognized nationally through Farm Credit 100 Fresh Perspectives, a search to identify and honor 100 leaders who are changing rural communities and agriculture for the better.  The honorees were announced on National Ag Day, Tuesday, March 15, at the National Press Club in Washington, D.C.

Olufs, a senior at Petaluma High School in Petaluma, CA, was recognized as a top 100 Nominee for her work as a young pioneer in genetics breeding dairy cows and for her success as a young business woman, under the category of Beginning Farmer or Rancher Achievement.

Additionally, California FarmLink, located in Santa Cruz, CA, was named among the top 10 distinguished honorees, under the category of Financial Stewardship. As a top 10 award winner, California FarmLink will receive a $10,000 award to help further their contributions to thriving rural communities and agriculture, and will be honored in Washington, D.C., at a special Farm Credit event in June of this year.

As Farm Credit 100 Fresh Perspectives honorees, both California FarmLink and Olufs join an impressive list of leaders in agriculture and rural enterprise. American AgCredit joins the nearly 80 Farm Credit organizations that are celebrating the dynamic future of rural communities and agriculture.

“These are the people and ideas that will move Farm Credit into the next century and beyond. It takes vision and smart business sense to remain successful over time in a rapidly evolving and thriving industry like agriculture,” said President and CEO Byron Enix. “We are delighted to recognize both California FarmLink and Carly Olufs as leaders helping to define the future of agriculture.”

Selected by a panel of experts on rural matters, including Farm Credit leaders and others from throughout the agriculture industry, these honorees were named the best‐of‐the‐best among those nominated who demonstrate influence, leadership and innovation in the following categories: 

*  Agriculture Education and Community Impact                                                             *  Mentoring and Volunteerism

*  Beginning Farmer or Rancher Achievement                                                                  *  Rural Policy Influence

*  Entrepreneurship and Innovation                                                                                  *  Rural and Urban Connection

*  Financial Stewardship                                                                                                    *  Sustainability and Natural Resources

*  Leadership (21 and up)                                                                                                  *  Youth Leadership (under 21)

 

To learn more about the Farm Credit 100 Fresh Perspectives honorees, visit www.farmcredit100.com/top100. There you can also find a complete list of the Farm Credit 100 Fresh Perspectives honorees.

About California FarmLink – Top 10 Fresh Perspective Award Winner

The mission of California FarmLink is to link independent farmers and ranchers to the land and financing they need for a sustainable future. Since 1998, California FarmLink has assisted more than 3,000 farmers and ranchers throughout California. Their programs including financing, land security, and educational and advisory services to low income, beginning, underserved, minority and small‐scale farmers. American AgCredit has worked with California FarmLink since 1999 as an early founding donor, and has been involved in assisting with their educational programs, speaking at seminars and panels, and sharing knowledge about agricultural finances to their financing prospects and customers.

About Carly Olufs – Top 100 Fresh Perspective Winner

Carly is the principal for Carly‐O Jerseys and Holsteins, where she manages a herd of 15 registered Jerseys and Holsteins. A senior at Petaluma High School, Carly is member of the Petaluma (CA) FFA Chapter and a 3‐time Gold Award Winner of the Sonoma Section FFA Project Competition, of which American AgCredit is a key sponsor. In 2015 she was the National FFA Proficiency Finalist, Dairy Production Entrepreneurship, and a recipient of the Adelene Keightley Memorial Trophy, as Breeder of the Grand Champion Female at the All American Jersey Show in Louisville, Kentucky. She was also a member of the CA State Champion FFA Dairy Judging Team, and was awarded the Supreme Champion Grade Dairy Female, for the Sonoma Marin & Sonoma County Fair. Carly was also a recipient of the Lester Corda & Danny Buttke Memorial Award for Outstanding Dairy Project. After graduating from Petaluma High School, she plans on attending college at Oklahoma State University in Stillwater, to pursue a degree in Animal Science with the intent of pursuing a career as a dairy cattle geneticist.

  About Farm Credit

Farm Credit supports rural communities and agriculture with reliable, consistent credit and financial services, today and tomorrow. Farm Credit has been fulfilling its mission of helping rural America grow and thrive for a century by providing farmers with the capital they need to make their businesses successful and by financing vital infrastructure and communication services. Farm Credit launched the Farm Credit 100 Fresh Perspectives program as part of its 100th anniversary of service to rural communities and agriculture. For more information about Farm Credit please visit www.farmcredit.com.

About American AgCredit

Founded in 1916, American AgCredit is a member of the Farm Credit System. As the 6th largest lending cooperative in the U.S. with lending assets in excess of $7.7 billion, American AgCredit specializes in providing financial services to farmers and ranchers throughout California, Nevada, Kansas, Oklahoma, Colorado, and Northern New Mexico – as well as to capital markets and agribusiness operators across the country. Financial services include production and mortgage financing, equipment and vehicle leasing, crop and life insurance, and lines of credit. Specialized programs include AgLife (focusing on Young, Beginning and Small farmers) and AgConnect, which offers financing to new and emerging markets.

American AgCredit Distributes $43.5 million in Cash Dividends To Association Customer-Owners

SANTA ROSA, CA – American AgCredit, ACA, the nation’s 6th largest agricultural lending cooperative, announced today its distribution of $43.5 million in cash dividends to more than 7,500 farmers and ranchers across California, Colorado, Kansas, New Mexico, Nevada, and Oklahoma.

The Board of Directors approved a distribution of 75 basis points (0.75%) based on the average outstanding loan volume, which results in a 75 basis point reduction in customer‐owner’s effective interest rate paid during 2015. As owners of the financial cooperative, American AgCredit’s customer‐owners have the opportunity to share in the financial success of the cooperative through cash dividends. Since 2005, American AgCredit’s customers have earned $300 million in dividends.

Board Chairman Charlie Talbott, a farmer from Palisade, CO, noted, “The board of directors is committed to maintaining a financially strong cooperative that offers agricultural expertise and invests back in its members.”

This dividend comes on the heels of the announcement of an increase in year‐over‐year accrual loan volume of $925 million and earnings of nearly $100 million due to strong loan growth.

“The ongoing success of American AgCredit is the result of the hardworking farmers and ranchers who make up our cooperative,” said CEO Byron Enix. “Paying cash dividends, while also building capital to allow us to serve future generations of farm businesses, is a key part of our mission and is a direct result of our continued focus on operational excellence.”

“Our dividend program reflects our financial strength and enables us to return value to our customer‐owners. Their success is our success,” Enix added.

# # #

About American AgCredit

Founded in 1916, American AgCredit is a member of the Farm Credit System. As the 6th largest lending cooperative in the U.S. with lending assets in excess of $7.7 billion, American AgCredit specializes in providing financial services to farmers and ranchers throughout California, Nevada, Kansas, Oklahoma, Colorado, and Northern New Mexico – as well as to capital markets and agribusiness operators across the country. Financial services include production and mortgage financing, equipment and vehicle leasing, crop and life insurance, and lines of credit. Specialized programs include AgLife (focusing on Young, Beginning and Small farmers) and AgConnect, which offers financing to new and emerging markets

Northwest Farm Credit Services Reports 2016 First Quarter Earnings

SPOKANE, Wash. (May 4, 2016) – Northwest Farm Credit Services, the Northwest’s leading agricultural lending cooperative, announced 2016 first quarter earnings of $58.4 million, as compared to $63.1 million for the same quarter of 2015. The decrease in earnings compared to the prior year was due to significant loan recoveries in 2015. Total capital increased 1.7 percent during the quarter to $2.1 billion.

“Our association’s strong financial performance continues in 2016,” said President and CEO Phil DiPofi. “Despite lower commodity prices, our customers remain well positioned to withstand the current market environment.”

DiPofi noted that staff is closely monitoring economic and weather conditions, commodity inventories and the global trade situation – all of which impact customer-members throughout the Northwest.

As a cooperative, Northwest FCS returns a share of its net earnings to customer-members in the form of patronage dividends. The Northwest FCS board recently approved an increase in patronage from 0.75 percent to 1.0 percent of a customer’s eligible average daily loan balance.

During the first quarter of 2016, a record $91.9 million was returned to eligible customer-members in the form of cash patronage, based on the association’s strong financial performance in 2015 and the amount of a customer’s business with the association. This contributed to a 43 percent increase in total cash patronage returned in 2016 as compared to 2015. Since the patronage program began in 2000, Northwest FCS has returned $590.6 million in cash patronage to customer-members.

For more information about current market conditions, see Northwest FCS Industry Insights

About Northwest Farm Credit Services

Northwest FCS is a $10.3 billion financial cooperative providing financing and related services to farmers, ranchers, agribusinesses, commercial fishermen, timber producers, rural homeowners and crop insurance customers in Montana, Idaho, Oregon, Washington and Alaska. Northwest FCS is a member of the nationwide Farm Credit System that supports agriculture and rural communities with reliable, consistent credit and financial services. For more information, go to northwestfcs.com.

CoBank Reports First Quarter Financial Results

DENVER (May 5, 2016) – CoBank, a cooperative bank serving agribusinesses, rural infrastructure providers and Farm Credit associations throughout the United States, today announced financial results for the first quarter of 2016.

Net income for the quarter was $243.3 million, a 5 percent increase from $232.2 million in the first quarter of 2015. The increase in earnings primarily resulted from higher net interest income, partially offset by increased operating expenses.

Net interest income for the quarter rose 7 percent to $336.9 million, from $315.3 million in the same period last year, primarily due to higher average loan volume.

Average loan volume rose 11 percent in the first quarter to $89.8 billion, from $80.6 billion in the same period last year. The increase was driven by higher levels of borrowing from affiliated Farm Credit associations as well as customers in a number of industries, including rural electric cooperatives, rural communications service providers, and food and agribusiness companies.

“We’re pleased with CoBank’s results for the quarter and the strong start we’ve experienced this year,” said Robert B. Engel, CoBank’s chief executive officer. “Though operating conditions are challenging in a number of the industries we serve, the strength of the CoBank value proposition is helping to drive broad-based growth across all segments in our portfolio.”

The bank’s financial results for the first quarter of 2016 included an $8.0 million provision for loan losses as compared to a $10.0 million provision recorded in the prior-year period. The provision primarily reflected the increase in average loan volume and a slight deterioration in credit quality in CoBank’s agribusiness portfolio. At quarter-end, 0.71 percent of CoBank’s loans were classified as adverse assets, compared to 0.70 percent at December 31, 2015. Nonaccrual loans increased to $212.8 million at March 31, 2016 from $156.8 million at December 31, 2015, primarily due to credit issues involving a small number of customers in our agribusiness operating segment. The bank’s allowance for credit losses totaled $609.7 million at quarter-end, or 1.31 percent of non-guaranteed loans when loans to Farm Credit associations are excluded.

“Overall credit quality in our loan portfolio remains very strong,” said David P. Burlage, CoBank’s chief financial officer. “To date, we have not seen significant impacts to loan quality measures as a result of lower commodity prices and other challenges facing rural industries. While it’s possible we could see further credit quality deterioration in the future, we remain confident in the risk-bearing capacity of the bank and its ability to serve our customers’ borrowing needs.”

Capital levels for CoBank remained well in excess of regulatory minimums. As of March 31, 2016, shareholders’ equity totaled $8.1 billion, and the bank’s permanent capital ratio was 14.8 percent, compared with the 7.0 percent minimum established by the Farm Credit Administration (FCA), the bank’s independent regulator. At quarter-end, the bank held approximately $26.4 billion in cash and investments and had 180 days of liquidity, which was in excess of FCA liquidity requirements.

Engel noted that, despite solid first quarter results, CoBank continues to face a number of persistent challenges, including ongoing low interest rates, a flat yield curve and intense competition from other lenders. In addition, the bank is making substantial investments in people, processes and systems designed to enhance the value it delivers to the marketplace.

“Our cooperative structure remains an important advantage in this environment,” Engel said. “Under the guidance of our board, we have built the flexibility we need to stay focused on the long-term needs of our borrowers, many of whom are dealing with significant headwinds of their own. CoBank remains financially strong, and well positioned to continue fulfilling its broad mission of service to rural America.”

About CoBank

CoBank is a $118 billion cooperative bank serving vital industries across rural America. The bank provides loans, leases, export financing and other financial services to agribusinesses and rural power, water and communications providers in all 50 states. The bank also provides wholesale loans and other financial services to affiliated Farm Credit associations serving more than 75,000 farmers, ranchers and other rural borrowers in 23 states around the country.

CoBank 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, rural infrastructure and rural communities. Headquartered outside Denver, Colorado, CoBank serves customers from regional banking centers across the U.S. and also maintains an international representative office in Singapore.

For more information about CoBank, visit the bank’s web site at www.cobank.com.
Contact 

Arthur Hodges
Senior Vice President
Corporate Communications
303-740-4061
ahodges@cobank.com
Dan Sullivan
Senior Manager
Corporate Communications
303-793-2324
dsullivan@cobank.com

Farm Credit Associations Of Kansas And CoBank Contribute To Wildfire Disaster Relief Fund

WICHITA, KANSAS – (April 6, 2016) The six Farm Credit Associations of Kansas and CoBank today announced their intent to donate $138,000 to the Kansas Livestock Foundation, to aid rebuilding efforts following the recent wildfires in South Central Kansas. The Kansas Livestock Foundation is the charitable arm of the Kansas Livestock Association (KLA), a Topeka-based grassroots organization of livestock producers. All donated funds will be used to provide assistance to ranchers affected by the wildfire, through the purchase of fencing supplies, feed and other critical items needed to recover, and rebuild following the disaster.

Denver-based CoBank, a cooperative bank serving agribusiness, rural infrastructure providers and Farm Credit Associations, will match contributions made by the Farm Credit Associations of Kansas—American AgCredit, Farm Credit of Ness City, Farm Credit of Southwest Kansas, Farm Credit of Western Kansas, Frontier Farm Credit, and High Plains Farm Credit for a total contribution of $138,000. The six farmer-owned Farm Credit Associations of Kansas provide financing and related services to rural communities and agriculture throughout Kansas, and have a long history of partnering with the KLA on important matters impacting agriculture throughout the state.

The Anderson Creek fire is the largest wildfire in Kansas history. The fire started in Northern Oklahoma and quickly spread into South Central Kansas, burning nearly 400,000 acres, or roughly 620 square miles, along with hay reserves, fences, outbuildings and other personal property. At the same time, other fires burning in Reno and Harvey Counties caused considerable damage to fencing and grasslands as well.

“On behalf of the more than 15,000 customer-owners of Farm Credit throughout Kansas, we are pleased to join our friends and neighbors to support the rebuilding efforts after these devastating fires, said Greg Reno, senior vice president for American AgCredit. Farm Credit has been a part of rural Kansas for the past 100 years, and we hope our contribution will help families impacted by the wildfire preserve their legacy for the generations to come.”

“The recent wildfires throughout Kansas have had a devastating impact on the state’s agricultural industry,” said Alan Woodard, regional vice president, CoBank. “CoBank is proud to stand with our Farm Credit partners, in the best cooperative tradition, to support the industry and the people of Kansas and to aid in the recovery efforts.”

###

About Farm Credit Associations of Kansas

The Farm Credit Associations of Kansas are patronage-paying associations, serving more than 15,000 shareholders. Farm Credit has a rich tradition in Kansas for 100 years. The Farm Credit System is comprised of borrower-owned financial institutions serving farmers, ranchers, agribusiness and rural communities. The six Farm Credit Associations of Kansas are: Farm Credit of Western Kansas, Farm Credit of Southwest Kansas, Farm Credit of Ness City, High Plains Farm Credit, American AgCredit, and Frontier Farm Credit. More information is available at www.farmcredit.com.

About CoBank

CoBank is a $117 billion cooperative bank serving vital industries across rural America. The bank provides loans, leases, export financing and other financial services to agribusinesses and rural power, water and communications providers in all 50 states. The bank also provides wholesale loans and other financial services to affiliated Farm Credit associations serving farmers, ranchers and other rural borrowers in 23 states around the country.

CoBank 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, rural infrastructure and rural communities. Headquartered outside Denver, Colorado, CoBank serves customers from regional banking centers across the U.S. and also maintains an international representative office in Singapore.

For more information about CoBank, visit the bank’s web site at www.cobank.com.

About KLA

The Kansas Livestock Association is a trade association representing 5600 members on legislative and regulatory issues. KLA was formed in 1894 when a group of more than 100 Flint Hills ranchers met in Emporia to discuss cattle theft problems and unreasonable railroad freight rates. Today, KLA represents the state’s multi-billion dollar cattle industry at both the state and federal levels. KLA members are involved in all segments of the livestock industry including cow-calf, feedlot, swine, dairy and sheep. Dues paid by the membership fund legislative, educational and communications activities. The Kansas Livestock Foundation is a charitable arm of KLA. Online contributions to the Kansas Livestock Foundation for the Wildfire Disaster Relief Fund, may be made at the following website, http://www.kla.org/donationform.aspx.  More information about KLA is available at www.kla.org.