Farm Credit Services of America Buyout Offer by Rabobank

Robert Jolly, Roger Ginder, Neil Harl, Maureen Kilkenny, and Del Marks, Faculty and P&S, Economics and EMMS
On July 30, 2004 , Rabobank, a Dutch financial institution, announced its intention to purchase Farm Credit Services of America (FCSA), a Farm Credit System bank. A short time later, a counteroffer was announced by AgStar, another Farm Credit System bank located in Minnesota .
Provide a balanced overview of the Rabobank and AgStar offers that would enable cooperative members to make the best decision possible.
ISU and the University of Illinois developed a web site that provided a balanced overview of the Rabobank offer.  The web site received 5,958 hits.
The following report referenced the web site.
        Farm Credit Services of Americas Deal to Leave the Farm Credit System . Jim Monke, Analyst in Agricultural Policy Resources, Science, and Industry DivisionCRS Report for Congress, September 24, 2004 .
The following publications printed and/or posted an article on the information provided by the web site.
        Looking for Answers to FCS of America Buyout?   Compiled by staff, Farm Progress Companies Publications: American Agriculturist, California Farmer, Carolina-Virginia Farmer, Dakota Farmer, The Farmer, The Farmer-Stockman, Indiana Prairie Farmer, Kansas Farmer, Michigan Farmer, Mid-South Farmer, Missouri Ruralist, Nebraska Farmer, Ohio Farmer, Prairie Farmer, Southern Farmer, Wallaces Farmer, Western Farmer-Stockman, and Wisconsin Agriculturist. Print Issue: September 2004, Web Post: September 10, 2004 .
        FCSA Buyout Q&A. Roger Ginder and Neil Harl, The Flame newsletter, Iowa Institute for Cooperatives.  September 2004.
        Rabobank's Farm Credit Deal Subject of New Web Site, Agriculture Online.  September 13, 2004 .
        MO-AG Weekly Wrap Up newsletter, Missouri Ag Industries Council, Inc.  September 17, 2004 .
        Whats New, News Notes Realtors Land Institute. September 20, 2004 .
        Rabobank's Farm Credit Deal Subject of New Web Site, Successful Farming. November 2004.
        University of Illinois FarmDoc Web Site.
        ISU Extension Experts Analyze Ag Lender Buyout Proposal, ISU Extension. September 9, 2004 .
The following articles appeared in the first quarter 2005 edition of Choices, a publication of the American Agricultural Economics Association.
        FCSA Sale to Rabobank: Selling What? On Whose Authority? And For Whose Benefit?   Roger Ginder, 2005.
        Are Rural Credit Markets Competitive? Is There Room for Competition in Rural Credit Markets?  Maureen Kilkenny and Robert W. Jolly, 2005.
        Selling a Piece of the Farm Credit System. Robert W. Jolly and Josh D. Roe, 2005.
        History and Unique Features of the Farm Credit System.  Neil E. Harl, 2005.
On Thursday, Oct. 21, 2004 , the FCSA Board terminated the acquisition negotiations with Rabobank and also rejected consideration of AgStar's merger offer. The material on this site provided a common third party factual basis for discussions among FCSA management, staff, government policy makers, the press, and those voting members of FCSA who would have been involved in deciding whether to merge.  While it will never be known what the outcome of an actual merger vote would have been, the information provided on the site was accessed and applied by both proponents and opponents of the merger.  Policy makers and the general public also gained insights and a better understanding of the issue.

101 -- Agricultural Strategic Management

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