Farm Credit Administration
1501 Farm Credit Drive
McLean, Virginia 22102-5090
For Immediate Release
Contact: Martha Schober or Christine Quinn, 703-883-4056
Web site: www.fca.gov
FCA Board Allows Associations in North Dakota to Consolidate
McLEAN, Va., July 12, 2007 — The Farm Credit Administration (FCA) Board voted today to grant preliminary approval to the request by Farm Credit Services of Grand Forks, ACA, and AgCountry Farm Credit Services, ACA, (both of North Dakota) to consolidate their assets and charter a new association, AgCountry Farm Credit Services, ACA. The Board also approved the mergers of the two associations’ subsidiaries.
The associations requested the consolidation to better serve segments of agribusinesses in their service areas that are also consolidating, such as ethanol operations. The consolidated association, which will be located in Fargo, North Dakota, will have total assets of approximately $2.3 billion. The proposed effective date of the consolidation is January 1, 2008. Eugene Smestad will be the CEO of the new association. The combined territories will encompass 41 counties in northwestern Minnesota and eastern North Dakota.
In other action, the Board adopted a proposed rule that would allow Farm Credit System (FCS) institutions 90 days after the end of the fiscal year to prepare and distribute paper copies of their annual reports to shareholders. However, the institutions would still be required to file electronic copies of the reports with FCA and post them on their Web sites within 75 days.
The rule would also require institutions to provide written notice in advance to their shareholders that the reports will be available electronically on the institutions’ Web sites.
The proposed rule, which would amend section 620.4(a) of the FCA regulations, will be published in the Federal Register for a 30-day comment period. Comments for the proposed rule may be submitted by electronic mail to email@example.com, through the Pending Regulations section of FCA’s Web site at www.fca.gov, or through the Federal Government Web portal at www.regulations.gov.
Comments also may be sent by mail to Gary K. Van Meter, Deputy Director, Office of Regulatory Policy, Farm Credit Administration, 1501 Farm Credit Drive, McLean, VA 22102-5090, or by fax to 703-883-4477. The public may read comments submitted at the FCA office in McLean, Virginia, or through FCA’s Web site at www.fca.gov.
Also in this meeting, staff in the FCA Office of Examination presented the office’s required quarterly report to the Board. The purpose of the report is to present an assessment of the condition of the FCS, identify emerging risks and issues, and discuss follow-up strategies. The report concluded that the FCS remains safe and sound, with strong capital levels, asset quality and earnings.
The FCA Board approved two notational votes since its June 14 meeting. Notational votes are actions taken by the FCA Board between Board meetings.
On June 18, the Board voted to amend and restate the charter of CoBank, ACB, in order to reconcile CoBank’s statutory powers and obligations under Titles I and III of the Farm Credit Act of 1971, as amended.
On July 11, the Board voted to authorize the Federal Agricultural Mortgage Corporation to purchase certain investment securities with conditions.
The Farm Credit Administration is the safety and soundness regulator of the cooperative Farm Credit System. FCA charters, regulates, and examines the 107 banks, associations and service corporations of the FCS. System institutions make loans to agricultural producers and their cooperatives nationwide. Members of the FCA Board are Nancy C. Pellett, Chairman and CEO; Dallas P. Tonsager; and Leland A. Strom.
Note: FCA news releases are available on the Internet. Access the FCA Web site at www.fca.gov.