On July 1st three Farm Credit organizations—1st Farm Credit Services in Illinois, Badgerland Financial in Wisconsin and AgStar Financial Services in Minnesota—merged to form one company, Compeer Financial. Leadership in the new organization says they are poised to meet the evolving ag and rural market place.
“As markets continue to evolve it becomes more challenging to meet the specific needs of the marketplace,” says Rod Hebrink, president and CEO of Compeer Financial. “This merger was a core part of our effort to reach the scale necessary to effectively serve the needs of all of agriculture.”
While the merger will create a nearly $20 billion financial organization with about 45,000 customers, Hebrink says that doesn’t mean that they will only cater to large producers. In fact, he says about 80% of their portfolio includes loans of less than $100,000. That’s where the knowledge of experts within the organization helps the most, Hebrink says, providing expertise to customers who may not be on the farm full time. “Collaboratively we can create expertise to serve the marketplace much better than we could before.”
Listen here to Hebrink’s AgriTalk interview.
Current customers may not recognize much of a change other than the name, as all 47 offices will remain in place as will the client services team members they have come to know and trust.
“Compeer Financial can deliver more by coming together,” says Todd Van Hoose, President and CEO of the Farm Credit Council. “The reason you go big is to go small. Now they will have more reserves to meet more specific needs.”
Listen here to Van Hoose’s AgriTalk interview
Of the $249 billion in loans through Farm Credit, Van Hoose says about 7% of that goes to dairy farmers. While the larger scale of opportunities available through the merger provides resources to help small farmers, Mark Greenwood, chief diversified markets officer at Compeer Financial and dairy specialist, says the…