Annual Report - CoBank

R E G I O N A L A G R I B U S I N E S S B A N K I N G G R O U PT E N N E S S E E FA R M E R SCO O P E R AT I V EWith support from CoBank, Tennessee FarmersCooperative — a federated cooperative serving 150retail outlets in 83 of Tennessee’s 95 counties— is taking some of the administrative burdenoff its member cooperatives.In 2009, CoBank provided funding for TFCto launch a program called Co-op FinancialSolutions. It allows TFC to buy receivablesfrom member co-ops, boosting their individualliquidity positions and freeing members fromhaving to worry about credit decisions.“Our philosophy is that if our membercooperatives grow, then TFC will grow,” saidBart Krisle, chief executive officer. “With thefinancial support of CoBank, our co-ops on thelocal level will be able to focus on customerservice and sales, and expand their businesswith things such as new product lines orinfrastructure enhancements.”With a relationship dating back more than 50years, TFC relies on CoBank’s rural focus andcapacity to deliver a wide variety of financialsolutions. In recent years, TFC has also usedfinancing from CoBank to support an expansioninto new regions, including Kentucky, Georgia,Virginia, Missouri, Arkansas and North Carolina.“CoBank is definitely there with capital to helpthe business as it grows,” Krisle said. “ButCoBank also provides critical analysis ofwhether a deal makes sense or not, and Itruly value that.”S O U T H DA KOTAW H E AT GROWERSSouth Dakota Wheat Growers was founded in1923 and has been capitalizing on CoBank’sdeep knowledge of agribusiness lending sincethe 1930s. That relationship is as importanttoday as it was 80 years ago for the grain andagronomy cooperative, which serves about5,000 producer-members in the James RiverValley of South and North Dakota.“We’ve had a long and strategic relationshipwith CoBank,” said Dale Locken, chief executiveofficer. “CoBank has been integral in helping usaccess capital for long-term projects as well asdaily operating money.”South Dakota Wheat Growers markets morethan 150 million bushels of grain annually. With38 locations and six rail-loading points, thecooperative is one of the largest in the Midwest,and it still is growing and expanding.CoBank recently led a syndication with 23other banks that provides South Dakota WheatGrowers with access to a seasonal line of creditand a term loan. They also utilize CoBank forcash management and leasing services. Thatfinancial support provides South Dakota WheatGrowers with much needed flexibility.“It provides us with tremendous confidenceto have a seasonal line of credit from CoBanklocked in over the next several years,” Lockensaid. “Also, since we’re still growing, havingthe operating money in place makes things alot more orderly.”S t r e n g t h a n d s ta b i l i t y 9