Pub. 10 2015-2016 Issue 4

November/December 2015 25 Extraordinary Service for Extraordinary Members. banks nor are they subject at this time to congressional over- sight by the Senate Banking and the House Financial Services committees. If Global Finance views the FCS banks as com- mercial banks, perhaps Congress should, too, and subject them to oversight by the banking committees. ProPartners Financial, an Opaque FCS Entity A very opaque FCS entity is ProPartners Financial (PPF) which, according to its website (www.ppfcredit.com ), is “the largest provider of credit programs for the direct sellers of crop inputs and seed in the United States. With access to strong and stable funding through the [FCS], the highest- rated ag lender in the country, PPF provides solid financing options for agribusinesses selling directly to producers to finance crop input and seed purchases.” Established in 2001, PPF is owned by 10 of the larger FCS associations, nine of which are funded by AgriBank. These associations stretch across the northern tier of states, from Michigan westward, plus the two associations serving Il- linois. PPF offers two basic programs: AgriSpan, which is an “established off-the-shelf financing program,” and Branded Finance Programs that are created when the borrower enters into a “Master Participation Agreement with PPF funding and administering the loan program behind the scenes.” PPF bears some resemblance to AgDirect (www.agdi- rect.com ), an equipment dealer financing program run by FCSAmerica, the largest FCS association, based in Omaha, Neb., that serves Nebraska, Iowa, South Dakota, and Wyo- ming. However, while FCSAmerica’s financial reports provide limited financial data about AgDirect, there is absolutely no published financial information about PPF. Because PPF does not appear to be chartered by the FarmCredit Administration (FCA), it does not file quarterly call reports with the FCA. Based just a few miles from AgriBank’s headquarters in St. Paul, Minn., perhaps AgriBank provides funding to PPF to finance its outstanding loans. Perhaps, though, the 10 as- sociations that own PPF participate in the loans PPF makes. Who knows? In addition to not disclosing any financial data, PPF pro- vides no information about who its customers are. Presumably they are eligible FCS borrowers because they sell crop inputs and seeds, but that cannot be stated with any certainty. One can surmise, though, that many of PPF’s loans go to large, creditworthy companies hardly in need of taxpayer-subsidized financing. To what extent the FCA examines PPF’s activities is unknown, but it should for PPF clearly is trading on its FCS affiliation. FCS Trade Association Picks New President The FarmCredit Council (the Council), the FCS trade asso- ciation, has picked Todd VanHoose as its newCEO, replacing Ken Auer who will retire next year. Currently, Van Hoose is CoBank’s senior vice president of government affairs. Prior to that he was the Council’s senior vice president of government affairs. Van Hoose’s appointment reinforces the extremely close ties between the Council and CoBank, for not only do the two organizations share office space in Washington but the Council has an office in Greenwood Village, Colo., just a mile from CoBank’s headquarters. While CoBank is just one of the four FCS banks and funds just 26 of the 76 FCS associations, it clearly is the dominant institution within the FCS universe. One can reasonably surmise that Van Hoose’s selection as Auer’s successor will reinforce CoBank’s domi- nance within the FCS. Report FCS Lending Abuses Bankers are continuing to send Farm Credit Watch reports of FCS lending abuses such as FCS loans for ru- ral estates, weekend getaways, and hunting preserves. Email reports of similar lending abuses in your market to: green-acres@ely-co.com.  To contact Bert Ely, email bert@ely-co.com , phone (703) 836-4101, fax (703) 836-1403, or send mail to P.O. Box 320700, Alexandria, Va. 22320. If your bank belongs to the American Bankers Association (ABA), you can enjoy a free email subscription to FCW or you can read it monthly online at www.aba.com . To receive FCW by email or to manage your subscription, visit ABAMember Email Bulletins at www.aba.com/Tools/Ebulletins/Pages/ default.aspx. For other inquiries, please contact Barbara McCoy at the ABA at (800) BANKERS or bmccoy@aba.com. Nebraska banks provide innovative financial solutions to the communities they serve. We are here to enhance your success. Loan Documentation and Negotiation Loan Participations Bank Mergers and Acquisitions Succession Planning for Owners Commercial Litigation Regulatory Consultation and Compliance Loan Default Remedies and Bankruptcy Representation Real Estate Purchase, Sale and Leasing General Business Representation Nathan J. Gurnsey (402) 437-8534 Andrew B. Koszewski (402) 437-8531 Frank J. Mihulka (402) 898-7413 Michael D. Matejka (402) 898-7409 Jill D. Fiddler (402) 437-8532 Daniel R. Carnahan (402) 898-7433 www.woodsaitken.com Omaha Lincoln Denver