Extension Communications
Extension 4-H Youth Building
Ames, Iowa 50011-3630
(515) 294-9915
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Extension Communications |
9/9/04
For Immediate Release
Contacts:
Neil E. Harl, Economics, (515) 294-6354, harl@iastate.edu
Roger Ginder, Economics, (515) 294-6260, ginder@iastate.edu
Del Marks, Continuing Education and Communication Services, (515) 294-9807,
delmarks@iastate.edu
ISU Extension Experts Analyze Ag Lender Buyout Proposal
AMES, Iowa -- A proposed bank buyout that would affect one of the largest agricultural lenders in the nation is the topic of a review by three agricultural economists at Iowa State University.
On July 30, 2004, Rabobank, a Dutch financial institution, announced its intentions to purchase Farm Credit Services of America (FCSA), headquartered in Omaha, Nebraska. FCSA makes loans in Iowa, Nebraska, South Dakota and Wyoming.
In response to a steady stream of requests for information about the buyout, Iowa State University has established a Web site containing background information and analyses of the transaction. The Web site address is www.rabobankbuyout.org.
The three Iowa State University faculty who have organized the Web site and contributed material for it are Neil E. Harl, Charles F. Curtiss Distinguished Professor of Agriculture and emeritus professor of economics, member of the Iowa Bar, and director of the Center for International Agriculture Finance; Robert W. Jolly, professor of economics; and Roger G. Ginder, professor of economics.
The Web site includes a review of the history of the Farm Credit System, Congressional Statements of Policy, background information on Rabobank, a discussion of the "exit" fee to be paid by FCSA as the price for leaving the Farm Credit System, information on voting and payments to stockholders of FCSA, a discussion of dissenter's rights and an item on expected federal and state income tax liability from the stockholders. Also, the Web site includes postings on What is the Competitive Environment for Agricultural Loans in the Omaha District? What Are The Differences Between Cooperative Banks and Investor-Owned Banks? What is the Farm Credit System's Relationship to the Federal Government? How Are Financial Institutions Sold? How Has FCSA Performed Compared With Other Banks? Why Sell the Bank -- Options for FCSA Members.
Two articles are also posted to the Web site, one by Harl, which was published in the last issue of Ag Lender, a Doane Agricultural Services publication, and an article by Peter Barry, an agricultural economist at the University of Illinois, Urbana/Champaign.
The Web site will be updated as the transaction progresses and additional information becomes available.
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