ICBA - Publications - FCS Mergers Continue

FCS Mergers Continue

WWR ARTICLE
OCTOBER 18, 2002

 

The board of the Farm Credit Administration this week granted preliminary approval to merge AgAmerica Farm Credit Bank into AgriBank, FCB of St. Paul, Minn. The merger is effective January 1, 2003, and will add the states of Iowa, Nebraska, South Dakota and Wyoming to the territory served by AgriBank. The FCA board also announced the conversion of the last two stand-alone Production Credit Associations in the Farm Credit System into an Agricultural Credit Association (ACA). The action will result in the formation of "Farm Credit of Western Oklahoma, ACA," with two wholly owned associations as subsidiaries-Farm Credit of Western Oklahoma, FLCA, and Farm Credit of Western Oklahoma, PCA. The proposed effective date is January 1, 2003. In recent years, PCAs have merged into ACAs to escape paying taxes.