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Dane Coomer, Chair of the Board - Farm Credit Midsouth

Chair's Commentary

Dane Coomer

Chair of the Board
Farm Credit Midsouth

April 11th at 3:50 p.m.
Status: Rained Out

As I’m sure many of our stockholders have already noted, at the last AgriBank meeting in March one of our Farm Credit Midsouth directors, Chris Roberts from St. Francis County, was elected to the AgriBank board of directors. “AgriBank” is what we refer to as our District Bank. Though some of you may already be familiar, I thought I’d used my space in this issue to explain a bit of the structure of the Farm Credit System.

There are, at this writing, 69 Farm Credit banks and associations, Farm Credit Midsouth being one. Each association is part of one of four districts—predominantly geographical in nature—and those districts each have a District Bank from which each association borrows money.

The four District Banks and the areas they cover are as follows:
AgFirst: Generally the eastern seaboard;
AgriBank: The Midwest from Canada to Arkansas;
CoBank: Generally the western part of the U.S. and the Northeast; and
The Bank of Texas: Includes Texas and parts of New Mexico, Louisiana, Mississippi, and Alabama.

These District Banks obtain funding from the sale of bonds offered by the Federal Farm Credit Funding Corporation, a fiscal agent in the greater New York area, owned by the system banks. The Funding Corporation selling group distributes Farm Credit Bonds worldwide to investors, banks, states, municipalities, pension and money market funds, and other investors. Farm Credit bonds are rated very highly by groups such as Moody’s and Standard & Poor’s, and are very popular among investors.

So, in my simple turn row logic, the Funding Corp sells bonds > the profit from the sale of which funds the District Banks > who in turn fund the individual Associations > who in turn provide their Members with funding.

These actions support over 500,000 farmers, ranchers, agricultural producers, rural infrastructure providers, and rural homebuyers in all 50 states and Puerto Rico; together comprising the most efficient food and fiber producing force the world has ever known. The Farm Credit System stands as a shining, successful example of the cooperative banking model—its owners being its Members.

To say it’s a privilege for me to serve a portion of these 500,000 as a director is most definitely an understatement. May God bless you, yours, and us.

Dane Coomer's Signature

Dane Coomer

Chair of the Board
Farm Credit Midsouth

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