Recognizing the continually changing needs of U.S. agriculture, the more than 90 independent Farm Credit associations across the country have joined in an effort to ensure we are ready for those changes. Farm Credit has undertaken a market-based assessment of how well positioned we are to fulfill our mission over the next 10 years.

Farm Credit in the Northeast has a long history of preparing for the future; but rarely have all local Farm Credit associations and banks throughout the United States worked so closely together on such an effort.

Most of you know that nationally, Farm Credit is the largest single lender to agriculture. And you also know that Farm Credit of Maine operates locally with a federal charter to serve Maine. Like other banks, we are regulated by an agency of the federal government. But unlike other banks, ownership and control of Farm Credit is in the hands of customer-stockholders like you.

Since the first Farm Credit loan was made in Maine in 1916, we have provided credit and credit-related services to Maine’s food and fiber producers and to businesses that provide essential services to those producers. We have no plans to stray from this mission.

Looking ahead

As we look ahead 10 years or so, we want to be adequately prepared to serve the rapidly changing needs of Maine’s agricultural, forest products and commercial fishing industries. Our objective is not to broaden or expand our charter, as some of our competitors may construe, but rather to be prepared to lend to any business, regardless of its structure, its food or fiber product or its type of essential service to Maine’s producers.

“As we look ahead 10 years or so [in Maine],
we want to be adequately prepared to serve the
rapidly changing needs of Maine’s agricultural, forest products and commercial fishing industries. ”

The facts are: ownership structures of all businesses are more complex these days and much of the legal and regulatory framework that we deal with in agriculture is very dated. For example, if we wanted to form a subsidiary to provide start-up capital to Maine’s agricultural and related business, we couldn’t do it today.

Farm Credit would like the ability to continue to provide all types of capital and related support services to Maine’s agricultural, forest products and commercial fishing industries. We think this will help producers financially … plus this is our mission.

About Horizons

This Farm Credit System project is called “Horizons — Advancing Our Commitment to Rural America.” The project began last year and is expected to conclude later this year. Farm Credit employees around the country are doing much of the work, as steering committees with broad project oversight and as task forces with specific market sector tasks.

We are also involving partners and associates in agriculture’s private and public sectors. With Farm Credit’s broad-based support of many agricultural organizations, we want their opinions and to keep them informed of our progress.

The purpose of this letter is to inform our stockholders and friends that this forward-looking marketplace assessment is underway. Horizons is to ensure that the national cooperative Farm Credit System is prepared to meet the financial needs of American agriculture in the next 10 to 15 years. That would take us to about 2016, when Farm Credit will celebrate its first 100 years in Maine.

If you would like to learn about Horizons, please call or e-mail me and I will be glad to tell you more.

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