In a significant development for the agricultural sector, Farm Credit of New Mexico and American AgCredit Farm Credit cooperatives have announced a merger set to take effect on October 1, 2023. The merger aims to fortify the Farm Credit Association by enhancing marketplace stability, increasing funding capacity, and offering better access to technology.
The announcement comes on the heels of a re-vote by the voting stockholders of Farm Credit of New Mexico. The re-vote was part of a reconsideration process established by the Farm Credit Administration (FCA).
Curt Hudnutt, CEO of American AgCredit, expressed optimism about the merger, stating it would make the organization a “better partner for our customers.” With an asset base nearing $21 billion and a diverse agricultural portfolio, the merged entity aims to better serve farmers, ranchers, and agribusinesses across a seven-state territory, including New Mexico. “This merger helps us fulfill our mission—helping them grow their future,” Hudnutt added.
James Duffey, Board of Directors Chair for Farm Credit of New Mexico, voiced support for the merger. He said the merger would benefit customers, employees, and the broader Farm Credit mission. “The size and scale of the merged Association help ensure the future of agriculture in New Mexico,” Duffey said.
The merged entity, which Hudnutt will lead, is expected to employ more than 900 people. The October 1 effective date for the merger is still pending final approval from the FCA.
The merger is seen as a significant step in strengthening the agricultural sector, particularly in New Mexico, and is keenly awaited by stakeholders in the industry.
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