Consolidation in the Farm Credit System: The Case of AgCountry and United

Erik D. Hanson

Applied Economics Teaching Resources (AETR), 2021, vol. 2, issue 6

Abstract: Agricultural lenders provide an important service in America’s agricultural economy. In recent years, consolidation has occurred in many aspects of agriculture, including agricultural lending. This educational case study examines consolidation in the Farm Credit System (FCS), which is a system of cooperatively owned agricultural lending associations. The merger between AgCountry Farm Credit Services and United FCS illustrates some drivers of consolidation in the Farm Credit System and provides opportunities to consider the advantages and disadvantages of a merger. The perspectives of the associations’ leaders, member-owners, and employees are explored, allowing students to offer tactical and strategic advice to these stakeholders. This case study is intended for undergraduate students taking courses in agricultural finance, agricultural lending, or cooperatives.

Keywords: Teaching/Communication/Extension/Profession (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaeatr:308496

DOI: 10.22004/ag.econ.308496

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