The Farm Credit Mid-America Board of Directors is pleased to announce the Farm Credit Administration (FCA) has given preliminary approval for the merger of Farm Credit Mid-America and Farm Credit Midsouth. As cooperatives, both associations will now present the potential merger to their stockholders for a vote. Notice of a special meeting and merger disclosure have been mailed to all customers, and ballots to vote on the merger have been mailed to all voting stockholders.
“If approved, we are excited to have this opportunity to expand our purpose to secure the future of rural communities and agriculture,” said Andrew Wilson, chairman of the Farm Credit Mid-America Board of Directors. “One of the many benefits of belonging to a cooperative is the opportunity to vote on issues that influence our operations. We encourage all our customers to read the disclosure and invite all our voting stockholders to let their voice be heard by casting their vote.”
Voting stockholders may return their proxy ballot and proxy form to cast their vote by mail. They may also attend the special meeting at 12501 Lakefront Place in Louisville, Ky. on February 16, 2023 to vote in-person. The merger disclosure may be found on Farm Credit Mid-America’s website.
A results letter will be mailed to all customers immediately following the vote. Both cooperatives will then enter a 35-day reconsideration period, until final approval is received from the FCA.
The merged association would serve more than 137,000 customers in 391 counties across six contiguous states and employ approximately 1,600 team members. The cooperatives have an owned and managed asset total of $36 billion and combined net income for both cooperatives is $49 million as of June 2022, with a combined patronage payout of $217 million in 2022.
Should the merger be approved, the merged association will be named Farm Credit Mid-America. Dan Wagner, current president and CEO of Farm Credit Mid-America, will continue to serve in that role with Louisville, Ky. as the headquarters. Farm Credit Midsouth’s CEO James McJunkins previously announced his plan to retire at the end of February 2023. If approved, he will continue to serve in his role until the end of March 2023.
The Boards of Directors for Farm Credit Mid-America and Farm Credit Midsouth signed a preliminary letter of intent to merge the financial services cooperatives in June 2022. The boards met independently in late August to review and approve due diligence and the merger disclosure document, which was reviewed by FCA as part of its preliminary approval request. The target effective date of the merger is April 1, 2023.