Category: News

“Northwest Farm Credit Services had another year of strong financial performance in 2014,” reported Karen Schott, Northwest FCS Board Chair and Montana farmer. “Our patronage program allows us to share earnings with our customer owners, which provides a significant financial boost to rural communities throughout the Northwest.”

Since the patronage program began in 2000, $498.7 million in cash patronage has been paid to customers who borrow money from the cooperative.

“Our continued financial success has allowed us to provide a consistent level of patronage to our customers, while at the same time, build our overall financial capacity. Strong earnings and capital allow us to work with our customers through the economic ups and downs of the global marketplace,” said Schott.

The grant, from CoBank and American AgCredit, will fund research that will provide growers with healthier bees resulting in better pollination and increased crop yields.

The research is being conducted by Project Apis m., a non-profit organization that serves as a conduit between bee industry researchers and funding sources, which will use the donation to fund research into potentially new and innovative ways to control the Varroa mite. The pest, which weakens honey bees, reproduces quickly, and is capable of quickly spreading viruses within a bee colony, has grown to be a formidable threat to the bee industry since its discovery in the U.S. in 1987.

CoBank provides loans and other financial services to agricultural cooperatives and other agribusiness providers across the United States, including many in California. It is also the funding bank for Santa Rosa-based American AgCredit and other Farm Credit associations serving farmers, ranchers and growers throughout the state.

“We’re delighted to partner with American AgCredit in search of a solution to this major problem,” said Leili Ghazi, Western Region president for CoBank. “The mission of Farm Credit is to stand behind agriculture and the U.S. rural economy, and we hope the knowledge and insight gained from this research will reduce the threat to bee colonies on which so many producers depend.”

“For this project, we’re not only going to solicit scientists within our normal honey bee research institutions, but we’re going to approach entomologists who might be working on other pests, particularly mites in other agricultural or livestock areas,” says Christi Heintz, executive director of Project Apis m.

“The health of our insect pollinators is crucial to our farmers and to the American public,” said Rep. Jeff Denham, co-chair of the Congressional Pollinator Protection Caucus. “We must work to understand what’s causing the decline in health of our honey bee colonies. I look forward to seeing the funding for this research help us meet that goal.”

Project Apis m. derives its name from the scientific name for the European honey bee, Apis mellifera. Founded in 2006 and based in Paso Robles, Calif., it has steered more than $3 million into research toward improving the health of honey bees and honey bee colonies.

Five of California’s top agricultural lenders pledged their continued support for the Fresno State Jordan College of Agricultural Sciences and Technology’s Farm Credit Multicultural Scholars in Agriculture program.

The program, led by Jordan College professor Dr. Steven Rocca and University Outreach Coordinator Desiree Molyneux, was created to build closer ties between the Jordan College and future agricultural leaders from Fresno, Kings, Madera and Tulare counties. Through the program, Fresno State agriculture students will mentor high school students interested in pursuing careers in agricultural science and technology.

“At Fresno State, we have a laser-like focus on helping students succeed,” said Fresno State President Joseph I. Castro. “Programs such as the Multicultural Scholars in Agriculture are crucial to student success because research indicates that students who are actively engaged with the University are more likely to graduate.”

The endowment now stands at $495,000 in commitments, thanks to nearly $300,000 in combined gifts from Farm Credit System members American Ag Credit (Santa Rosa), CoBank (Roseville), Farm Credit West (Roseville), Fresno Madera Farm Credit and Golden State Farm Credit (Kingsburg).

These gifts will be matched by a $200,000 Title V-Hispanic Serving Institution (HSI) grant by the U.S. Department of Education.

On December 12, representatives of the financial institutions met with Castro, Jordan College Interim Dean Dr. Sandra Witte and the program’s first class of student ambassadors, including:

– Courtney Carlton from Kerman, CA
– David Jaime from Winterhaven, CA
– Lennette Gutierrez from Salinas, CA
– Desirae Perez from Filmore, CA
– Toushulong Vang from Fresno, CA

The Jordan College students were selected to participate in the program based on their academic standing, career objectives, ethnic backgrounds and their strong interest in promoting higher education opportunities in agriculture.

Each participating student will receive $1,500 for the 2015 spring semester. In return, they will work as mentors with ethnically-diverse high school students in rural communities across the Central Valley. More than 100 languages are spoken in this culturally-diverse region, and Fresno County alone is composed of 70 nationalities

Fresno State’s student population is equally diverse. Seventy percent of the university’s 23,179 students report minority heritage, and Hispanics represent the largest overall percentage (39.4 percent).

The Jordan College is one of the West Coast’s most diverse colleges of agriculture, and its 1,000-acre farm laboratory reflects the region’s reputation as the most productive agricultural area in the world.

To discuss potential partnership opportunities to fund academic positions or programs, contact Alcidia Freitas Gomes at alcidia@csufresno.edu or 559.278.4266.

For more information, contact Geoff Thurner, Jordan College media and development communications, at 559.278.7221 or gthurner@csufresno.edu.

DENVER (November 26, 2014) – CoBank, a cooperative bank serving agribusinesses, rural infrastructure providers and Farm Credit System associations throughout the United States, announced today that it has enhanced its capital position with the issuance of $300 million in preferred stock.

The new Series H non-cumulative perpetual preferred stock has a fixed dividend rate of 6.20 percent until January 1, 2025, after which dividends will accrue at a floating rate. Bank of America Merrill Lynch, J.P. Morgan and Morgan Stanley served as joint bookrunners on the transaction.

“This transaction delivers cost-effective, long-term capital that will benefit both CoBank and our customer-owners,” said David P. Burlage, CoBank’s chief financial officer. “We’re pleased to have once again been able to take advantage of favorable conditions in the capital markets for high-quality corporate issuers.”

On October 1, 2014, CoBank redeemed all $136.8 million outstanding of its Series D non-cumulative perpetual preferred stock. The Series D preferred stock was issued in August 2009 and carried a dividend rate of 11 percent.

Burlage noted that third-party capital provides the bank with increased capacity to meet the borrowing needs of customers and supplements capital provided by member stock and unallocated retained earnings.

“CoBank’s financial strength and membership in the Farm Credit System have enabled us to undertake multiple third-party capital issuances in recent years,” Burlage said. “We assess our capital position on an ongoing basis and continue to look for opportunities to optimize our overall cost and quality of capital on behalf of our customer owners.”

Global Finance, which covers the financial services industry, publishes the “World’s 50 Safest Banks” list annually, and released its rankings for 2014 yesterday. 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.

Global Finance, which covers the financial services industry, publishes the “World’s 50 Safest Banks” list annually, and released its rankings for 2014 yesterday. 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.

“We’re very pleased to have earned this distinction,” said Robert B. Engel, CoBank’s chief executive officer. “Financial strength and stability is something all our customers look for when choosing a banking partner. We greatly value the trust our customers place in us, and it is essential that we continue to deliver exceptional value to them while maintaining a strong financial foundation for the long term.”

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.

Thirty-four scholarships were given to sons and daughters of Farm Credit West customers; eight first time scholars and 26 renewing scholars were awarded $1,500 scholarships. Over the last twenty years Farm Credit West has awarded $615,000 in scholarships.

First-time Scholarship Winners

The following students were awarded with a first time scholarship in the amount of $1,500 for the 2014/2015 collegiate school year. Each eligible student may renew their scholarship three times for a total of $6,000 in scholarships over four years.

Jason Couto Jr., Riverdale, CA received Academic All League for varsity football and golf and graduated Riverdale High School as an Honor Roll student. He applied the skills he obtained from a business course he took to create his own lawn maintenance business with friends serving Riverdale. Jason plans to attend West Hills College in Lemoore and major in Ag Business.

Garrison Fernandes, Tipton, CA is an active FFA member and athlete. He received numerous honors and awards such as Honor Roll, State FFA Degree, and 2013 Boys State Candidate. He states, “After college I want to return home, working on ways to manage water and improve technology to help make life easier and more efficient for farmers and dairymen.” Garrison plans to attend Cal Poly, SLO and major in Bio Resources Ag Engineering.

Foster Hengst, Woodlake, CA is a 6th generation farmer on his family farm. He has held leadership roles as FFA chapter Vice President and Light House Club President, participating in numerous FFA contests, and participating in four high school musicals. He was also a Boys State Candidate. Hengst plans to attend College of Sequoias and major in Plant Science.

Hattie Jameson, Visalia, CA is an active member of FFA, holding leadership positions at the chapter, section, and region levels. Her goal is to become an agriculture teacher and touch the lives of her students in the same way her agriculture teacher did for her. Hattie plans to attend Cal Poly, SLO and major in Agriculture Science.

Emma Larson, Hanford, CA is active in FFA, varsity volleyball, senior class officer and volunteer work. Her career goals in the next ten years are to be working in Sacramento as a lobbyist, whose main priority is being an advocate for agriculture. Larson plans to attend Cal Poly, SLO and major in Agricultural Communications.

Tristan Rollin, Riverdale, CA grew up on his family’s 4th generation dairy farm. He has contributed to his community through leadership positions as President of his 4-H and FFA chapters, varsity golf and basketball, and numerous volunteer hours. With his passion for math and agriculture he feels that a degree in Ag Engineering is the best way to make an impact. Tristan plans to attend Purdue University and major in Agricultural Engineering.

Kavin Sihota, Selma, CA attributes his strong work ethic and motivation to having grown up in agriculture and working on his family’s farm. He has received awards as the FFA Vine Pruning State Champion, Academic All League for water polo, and FFA Chapter Farmer. Kavin plans to attend Fresno State University and major in Viticulture Enology.

Elizabeth Talley, Arroyo Grande, CA and an honor roll student and Golf Team captain. Her work experience includes advertising and marketing of her family’s farms and winery. She created an educational video focusing on daily farm responsibilities. Talley plans to attend Cal Poly, SLO and major in Ag Communications.

Renewing Scholarship Winners The following students were awarded with a scholarship renewal in the amount of $1,500 for the 2014/2015 collegiate school year:

Bridget Adam, Santa Maria, CA

Justin Adam, Santa Maria, CA

Maggie Boneso, San Miguel, CA

Aaron Brown, Hanford, CA

Gavin Chohan, Yuba City, CA

Ethan Driver, Knights Landing, CA

Kristen Droogh, Lemoore, CA

Austin Fernandes, Tulare, CA

Lauren Friend, Tulare, CA

Alyssa Galhano, Visalia, CA

Matthew Geis, Bakersfield, CA

Mitchell Harry, Elk Grove, CA

Mazie Jameson, Visalia, CA

Audra Jones, Orland, CA

Thomas Larson, Hanford, CA

Cole Martin, Tulare, CA

Elizabeth Parsons, Bakersfield, CA

Rumyn Purewal, Yuba City, CA

Garrett Rasmussen, Dixon, CA

Rajvir Sohal, Yuba City, CA

Theresa Sweeney, Visalia, CA

Kaitlin Swickard, Susanville, CA

Navreen Thandi, Clovis, CA

Erin VanGrouw, Visalia, CA

Hannah Wilson, Clarksburg, CA

Madeline Wisecarver, Hanford, CA

July 24, 2014 – CoBank, a cooperative bank serving agribusinesses, rural infrastructure providers and Farm Credit associations throughout the United States, announced today that it has joined with the U.S. Department of Agriculture in the formation of a new public-private partnership focused on infrastructure investment in rural America.

The new “U.S. Rural Infrastructure Opportunity Fund” will serve as a source of private-sector capital to partner with USDA on wide variety of infrastructure projects in rural communities. CoBank will act as anchor investor and has committed $10 billion of balance sheet capacity to co-lend with the fund.

The fund was formally launched today in Washington, D.C. at a White House event focused on rural economic development featuring U.S. Secretary of Agriculture Tom Vilsack. “This fund represents a new approach to our support for job–creating projects across the country,” Vilsack said. “USDA and other agencies invest in infrastructure through a variety of federal initiatives, but our resources are finite and there are backlogs of projects in many parts of the economy. We know where investment opportunities exist, so we are in a position to help promote these projects among investors. With new efforts like this we can move beyond existing programs and help encourage substantial private investment in projects that grow the economy and improve quality of life for millions of Americans.”

“We’re extremely pleased to join with USDA in this important initiative,” said Robert B. Engel, CoBank’s chief executive officer. “It will enhance access to capital for a wide array of vital infrastructure projects around the country and speed up the process of rural infrastructure improvements. It is completely aligned with our mission of service to rural America, and we believe it represents a meaningful long-term growth opportunity for CoBank and our partner organizations in the Farm Credit System. We look forward to seeing the benefits the fund will deliver to rural communities.”

CoBank’s co-investments with the fund are designed to complement existing government loan and grant programs. The fund’s investment activities will include:

• Recruiting new sources of private capital to support rural infrastructure projects;
• Serving as a co-lender for borrowers financing projects where the government’s program limits or resource constraints warrant the fund’s involvement; and,
• Private lending in support of projects capable of meeting market terms.

TARGET INVESTMENTS WILL INCLUDE RURAL COMMUNITY FACILITIES, WATER AND WASTEWATER SYSTEMS, RURAL ENERGY PROJECTS AND RURAL BROADBAND. THE FUND WILL BE MANAGED BY CAPITOL PEAK ASSET MANAGEMENT, AN INDEPENDENT ASSET MANAGEMENT FIRM. COBANK WILL HAVE THE OPPORTUNITY TO REVIEW AND APPROVE EACH TRANSACTION INDIVIDUALLY, ON A CASE-BY-CASE BASIS. LOANS MADE BY COBANK SIDE-BY-SIDE WITH THE FUND WILL REMAIN ON COBANK’S OWN BALANCE SHEET OR BE SYNDICATED TO FARM CREDIT INSTITUTION PARTNERS, AND WILL BE SUPPLEMENTED BY ADDITIONAL CAPITAL PROVIDED BY INVESTORS BROUGHT IN BY THE FUND MANAGER, INCLUDING PENSION FUNDS, ENDOWMENTS, SOVEREIGN WEALTH FUNDS AND OTHER INSTITUTIONAL INVESTORS. COBANK MAY ALSO ACT AS THE SERVICER OF SOME LOANS MADE THROUGH THE FUND.

“The continued success of the U.S. rural economy and the improvement of rural communities depend on the strength of our infrastructure,” Engel said. “To remain competitive, we must develop innovative financing strategies that will ensure infrastructure investment keeps pace with the needs of agriculture and other key rural industries. We strongly believe this public-private partnership will facilitate the flow of capital to deserving projects and promote the health of rural America.”

About CoBank

CoBank is a $102 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 and the nation’s rural economy. 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.

U.S. Secretary of Agriculture Tom Vilsack unveiled the $150 million fund at a press conference in Iowa on Monday. Formed under the U.S. Department of Agriculture’s Rural Business Investment Program, the fund will focus on investments that help rural communities and industries, with an emphasis on supporting businesses involved in production agriculture, processing and marketing of agricultural products, farm supply, input suppliers and rural infrastructure providers.

“This new fund will allow innovative small businesses throughout rural America to access the capital they need to grow and create jobs,” Vilsack said. “One of USDA’s top priorities is to help reenergize the rural economy, and we now have a powerful new tool available to help achieve that goal. This new partnership will allow us to facilitate private investment in businesses working in bio-manufacturing, advanced energy production, local and regional food systems, improved farming technologies and other cutting-edge fields.”

CoBank has committed to invest $20 million in the fund. Seven other Farm Credit institutions are contributing the balance, including AgStar Financial Services (Mankato, Minn.), AgriBank (St. Paul, Minn.), Capital Farm Credit (Bryan, Texas), Farm Credit Bank of Texas (Austin, Texas), Farm Credit Services of America (Omaha, Neb.), Farm Credit Mid-America (Louisville, Ky.) and United Farm Credit (Willmar, Minn.)

“We’re enormously proud to serve as a founding investor in this important new venture,” said Robert B. Engel, CoBank’s chief executive officer. “The Farm Credit System is an essential provider of credit to agriculture and rural America. However, it’s critical that rural businesses have access to equity forms of capital as well, which is why the Rural Business Investment Program was created. We see this fund as another way that CoBank can fulfill its mission and support the continued development of the U.S. rural economy.”

Advantage Capital Partners, a leading growth capital and small business finance firm, will serve as general partner of the fund. Based in New Orleans and with offices throughout the U.S., Advantage Capital has invested more than $1.6 billion since 1992. The firm invests in small businesses across a wide range of industries that are located in geographic areas underserved by traditional sources of capital.

USDA has conditionally licensed the new fund. Final approval is pending based primarily on execution of formation documents and investor capital commitments.

SANTA ROSA, CA (March 2014) – American AgCredit, a farmer-owned financial cooperative, today announced annual net income of $111 million for the 2013 calendar year along with a cash dividend distribution of $37 million to its shareholders. This compares to net income of $107 million in 2012.

“As a cooperative, our earnings either contribute to our capital, allowing us to support our customers’ financial needs, or they are returned to producers in the form of cash-back dividends,” said Byron Enix, President and CEO. “We firmly believe that sharing the rewards with our members makes good business sense and allows them to share in the success they have created.”

The increase in income primarily was due to greater net interest income from loan growth and a reduction in the provision for credit losses due to an increase in credit quality. Loan volume ended the year at just over $6 billion, resulting in a year-over-year growth rate of 3.9%. Net interest income finished the year $7.8 million above plan due to higher than expected loan volume and recovery of $4.0 million of non-accrual interest income. Fee income totaled $13.8 million.

“Agriculture has continued to be stable throughout challenging weather, changing real estate prices, and fluctuating commodity markets,” said Chief Financial Officer Vern Zander. “Our success is a direct result of the success and stability of our customers and their businesses.”

With the $37 million in cash dividends paid out to shareholders, this brings the amount of net income distributed since 2005 to $215 million. Farm Credit Lender American AgCredit Earns $111 Million for 2013 and Distributes $37 Million in Cash Dividends to Customers American AgCredit earns $111 million and offers $37 million cash dividend for 2013.

ʺ American AgCredit returns dividends to customers based on their patronage, or loan volume, effectively reducing their interest rate,ʺ added Zander. ʺ This allows our customers to use those savings to re-invest in their own operations as well as their local communities.”

About American AgCredit

Founded in 1916, American AgCredit is part of the nationwide Farm Credit System, and is the nation’s 7th largest Farm Credit cooperative. American AgCredit specializes in providing financial services to agricultural and rural customers throughout California, Nevada, Central Kansas, Northern Oklahoma, Central and Western Colorado, and Northern New Mexico – as well as to capital markets customers in 30 states.

Financial services provided by American AgCredit include production and mortgage financing, equipment and vehicle leasing, crop and life insurance, lines of credit, and the Young, Beginning and Small Farmer Program. In addition, the Association provides interestfree loans for qualifying 4-H and FFA AgYouth programs, as well as college scholarships to young people interested in agriculture.

For more information about American AgCredit’s financial services, call 800-800-4865 or visit the website at www.AgLoan.com for a listing of offices by region.

CoBank and seven affiliated Farm Credit associations that serve California’s agricultural sector announced today that they have committed $100,000 to alleviate hunger in drought-stricken farm communities throughout the state. The associations together pledged $50,000, which CoBank matched on a dollar-for-dollar basis.

The seven organizations are American AgCredit, Farm Credit Services of Colusa-Glenn, Farm Credit Services Southwest, Farm Credit West, Fresno Madera Farm Credit, Golden State Farm Credit and Yosemite Farm Credit. Together, these lenders serve as the single largest source of loans and financial services for California’s agricultural economy, including farmers, ranchers, growers and agribusiness cooperatives.

Funds from the joint contribution will be directed to food banks in rural areas hurt by the historic drought, which has idled thousands of acres of farmland and left many farm workers unemployed.

“One of the many downside impacts of the drought has been increased food insecurity for the labor force that California agriculture depends on to be successful,” said Robert B. Engel, chief executive officer of CoBank. “We hope this contribution by the Farm Credit organizations that serve the state will make a meaningful impact and help to reduce the level hardship for farm workers.”

“We’re enormously grateful for this contribution,” said Andy Souza, president and CEO of Community Food Bank in Fresno, one of the food banks that will receive funds from the Farm Credit contribution. “California’s farm communities literally put food on the table for the entire nation. I commend Farm Credit for recognizing the importance of farm workers to the success of the state’s agricultural economy and stepping forward to help out people in need.”

The Farm Credit System is a nationwide network of banks and lending associations that provide loans, leases and other financial services to agriculture and other rural industries. Farm Credit institutions are cooperatively owned by the farmers, ranchers, growers, cooperatives and other borrowers they serve, and governed by boards elected by their customer-owners. CoBank and the seven Farm Credit associations serving California have aggregate loan portfolio totaling more than $17 billion and finance every sector of agriculture in the state, including citrus, nuts, vegetables, cotton, rice, livestock, wine and timber.

About Farm Credit

For nearly a century, Farm Credit has been a national provider of credit and related services to rural America through its cooperative network of customer-owned lending institutions. Farm Credit provides nearly $200 billion in loans and leases to farmers, ranchers, rural homeowners, aquatic producers, timber harvesters, agribusinesses, and agricultural and rural utility cooperatives. For more information about the Farm Credit System, please visit www.farmcredit.com.