As part of the national Farm Credit System (the System), yet independently owned and governed by our customers in Maine, we are in a unique competitive position as a lending institution. Here’s how the System works. 

• The Farm Credit System, through its Funding Corporation on Wall Street and in overseas markets, sells bonds that in turn fund the loans to its customers nationwide. These high quality bonds are backed by the strength of the $90 billion Farm Credit System in the aggregate. If bonds are sold at low interest rates because they are considered a safe investment, then this translates into a low cost of money for the Farm Credit System.
• An important wholesale link in this funding process is CoBank, headquartered in Denver, with regional offices around the world. Funds flow from the Funding Corp. to CoBank and then to us. Farm Credit of Maine is a customer-borrower of CoBank and one of its largest stockholders. In addition to CoBank, the System has a handful of other wholesale Farm Credit banks. 
• Farm Credit of Maine is the retail lender in this model. Of course, many other retail lenders are like us around the country — also all owned by their customers. While differences exist in business strategies and the size of each Farm Credit association —from very large to very small — we are very similar in many ways. 
• An important function for any financial institution is what many banks call "operations." That is loan accounting, billing statements and related activities. In our unique and efficient business model, these loan related data processing functions are handled by a Farm Credit partner located here in New England that is jointly owned by 11 Farm Credit associations just like us, some in the Northeast and some in the West. As part of its basic services, this partner also assists us in computer hardware and software services. 
• To provide competitive employee benefits to our excellent staff at the lowest possible costs to our business, we have formed close alliances with a small group of Farm Credit affiliates here in the Northeast.

This unique structure is a key component to our success. It helps us bring you the best service in the lending business, at a very low cost. Most importantly this structure allows us to focus on maintaining our strong relationship with so many of you.

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