NORMAL, Ill. — Farm Credit organizations in Illinois, Minnesota and Wisconsin serving nearly 50,000 clients will merge effective July 1.
1st Farm Credit Services in Illinois, AgStar Financial Services in Minnesota and Badgerland Financial in Wisconsin will become Compeer Financial, based in Sun Prairie, Wis.
Each organization’s existing offices will continue to provide local service, according to a news release.
Stockholders approved the merger, forming an organization with $18.6 billion in assets. Compeer Financial will operate in 144 counties through 47 offices in the three states.
Stockholders of the merging organizations received ballots and information about the proposal in March after the Farm Credit Administration granted preliminary approval. The organizations tallied votes April 7.
The organizations said the merger provides expanded capital that will help Compeer Financial invest in technology and other resources to support its client base. It also creates a more diverse portfolio that will create additional stability and better position the organization to share its earnings with stockholders through a cash patronage program.
1st Farm Credit Services, based in Normal, serves 42 counties in the northern half of Illinois. It provides service through 16 local offices, with agricultural loans, risk management products and services such as crop insurance, loan and lease options and agricultural real estate appraisals.
AgStar Financial Services, ACA, headquartered in Mankato, Minn., serves 69 counties in Minnesota and northwest Wisconsin. It claims expertise in the corn, soybean, swine, dairy and bio-energy industries, and has developed programs in loans, leases, crop insurance, consulting and rural home mortgages.
Badgerland Financial, headquartered in Prairie du Sac, Wis., provides credit, crop insurance, tax and accounting services to farmers, agribusinesses and rural residents. It serves member-owners through offices in 33 southern Wisconsin counties.