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Capital Farm Credit and First Ag Credit Announce Merger
Wednesday, October 8, 2008 • Posted October 8, 2008

BRYAN, Texas — Capital Farm Credit, ACA and First Ag Credit, FCS merged Oct. 1, forming the largest rural financing institution in Texas.

The merger of the two rural lending cooperatives was approved by their stockholder-customers in August and by their federal regulator, the Farm Credit Administration.

The resulting organization, known as Capital Farm Credit, ACA, has combined assets of more than $5 billion, making it one of the largest lending organizations in the nationwide Farm Credit System.

“This merger increases the commodity and geographic diversity in our loan portfolio,” said Ben Novosad, Capital Farm Credit chief executive officer. “Plus, we now have more capacity to serve an even broader territory in the state.” Capital Farm Credit’s service territory now includes 194 Texas counties.

“As a cooperative, we are owned by our customers, and they stand to benefit when we grow stronger,” Novosad said. “Customers can still expect the same great products and services from a friendly and knowledgeable staff. That is what we are known for.”

Novosad said the lending organization will also continue to share earnings with its customers through its patronage program. In recent years, Capital Farm Credit has distributed almost $200 million in combined cash patronage to its customers and has allocated additional equity available for future disbursement.

Capital Farm Credit finances country homes, farms and ranches, agribusiness operations, agricultural production, and rural recreational property. It is part of the nationwide Farm Credit System, a network of rural financing cooperatives established in 1916.

For more information about Capital Farm Credit, visit CapitalFarmCredit.com.

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