Pub. 5 2010-2011 Issue 6

March/April 2011 25 Extraordinary Service for Extraordinary Members. To contact Bert Ely, e-mail bert@ely-co.com; fax (703) 836-1403; phone (703) 836-4101; or mail PO Box 320700, Alexandria, Va. 22320. confirmation that AgDirect is a nationwide lender, the letter states that “in order to provide consistent rates throughout the expanded area, dealers will no longer be able to add ad- ditional interest (“dealer add-ons”) to AgDirect financing.” [emphasis supplied] AgDirect’s geographic reach is reinforced by the follow- ing: “If your company has locations outside the four-state area [FCSA] serves, they will now be able to offer AgDirect financing no matter where they are located.” [emphasis supplied] Another statement in the letter raises troubling privacy concerns as to how FCSA handles confidential cus- tomer information: “ . . . FCSAmerica offices will continue to have access to customers’ AgDirect information and may be able to answer basic questions from you and your custom- ers.” Clearly, AgDirect is originating loans outside of FCSA’s territory while avoiding FCS’ cooperative principles and bor- rower rights issues by calling the deals “loan participations.” Congress never intended for FCS lenders to work around the cooperative structure of the FCS; it intended for all FCS borrowers to receive minimum protections under the bor- rower rights provisions of the Farm Credit Act. AgDirect is another example of an FCS lender that will do anything to expand its business. While some FCS associations provide a link on their website to AgDirect, that is not true of many associations. As AgDirect continues to grow, it will be in- teresting to see how many associations complain to the FCA about FCSA, through AgDirect, poaching their customers. Until the complaints grow loud enough, the FCA, by allowing AgDirect to continue these questionable business practices, is once again demonstrating that it is fully compliant with the wishes of key FCS managers. Report FCS Lending Abuses Bankers are continuing to send Farm Credit Watch reports of FCS lending abuses such as FCS loans for rural estates, weekend getaways, and hunting preserves. E- mail reports of similar lending abuses in your market to green-acres@ely-co.com. Please provide as much detail as possible about any loan that violates the spirit, if not the law, governing FCS lending. Farm Credit Watch Free to ABA Members If your bank belongs to the American Bankers Association (ABA), you can enjoy a FREE e-mail subscription to FCW or you can read it monthly online at www.aba.com . To receive FCW by e-mail or to manage your subscription, visit ABA E-Mail Bulletins at www.aba.com and check or uncheck the appropriate boxes. For other inquiries, please contact Barbara McCoy at the ABA at 800-BANKER. Z experience guidance How will you get where you want to go? BKD National Financial Services Group can help you choose the right path with more than 180 professionals who have the expertise you need to help improve performance, reduce risk, lower costs and stay in compliance. Learn more at bkd.com . experience Lincoln 402.473.7600 Omaha 402.392.1040