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Ag lender merger a step closer
Three Midwestern ag lenders are a step closer to merging. Spokeswoman Rochelle Ripp Schnadt says the boards of directors for Illinois-based 1st Farm Credit Services, Minnesota-based AgStar Financial Services, and Badgerland Financial of Wisconsin have all approved the merger, but there’s work to do. She says, “We’ve completed the due diligence process, have made the recommendation to stockholders, and are in the process of preparing all of the appropriate documentation.”
Schnadt says regulators are now reviewing the proposal. “Right now, all of the documents are in the hands of the Farm Credit Administration, Agribank, which is our funding bank for the three associations, and all of that is being reviewed and really combed through with a fine-tooth comb to make sure that our customers are protected.”
She says the three organizations don’t overlap service territories, and foresees no significant changes for member services. “I think our customers can expect business as usual. Time will tell. There are a lot of decisions to be made yet, a lot of details to be worked out because we’re still so early in the process. We will be working to communicate those changes, if there are many or any in the coming months.”
Schnadt says they don’t know what name the proposed new entity will use.
If merged, AgStar President and CEO Rod Hebrink would lead the new association, and the headquarters would be in Sun Prairie, Wisconsin. A new board of directors would include 14 chosen by members and three appointed directors.
The merger still has to be approved by the membership of all three associations. Schnadt says it’s still unclear if that vote will take place yet this year or early next year.
Rochelle Ripp Schnadt discusses latest in merger progress with Brownfield’s Larry Lee
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