Cash-Back Dividends Total $160 Million Board Election Nearing

common
ground
AN INFORMATIONAL RESOURCE FOR THE CUSTOMERS
OF FARM CREDIT SERVICES OF AMERICA / January 2015
INSIDE:
Cash-Back Dividends Total $160 Million
Board Election Nearing
Meetings Explain Crop Insurance
L&L Feeders
Grain Producers
Davis, South Dakota
fcsamerica.com/richardlounsbery
fcsamerica.com/jasonlounsbery
RETURNING PROFITS TO
CUSTOMER-OWNERS
2014 cash-back dividends total
$160 million
The Board of Directors for Farm Credit Services
of America (FCSAmerica) approved a record
$160 million in cash-back dividends for the 2014
Patronage Program, bringing the amount of profits
returned to eligible customer-owners to $990 million
since 2004. Cash-back dividends will be distributed
in March 2015 and will be calculated based on a
customer’s eligible average loan volume during
2014.
Cash-back dividends effectively reduce the cost of
borrowing from FCSAmerica by returning a portion
of the cooperative’s profits to eligible customerowners. The 2014 distribution represents 80 basis
points in interest saved.
2015 Patronage Program approved
The FCSAmerica Board also approved a 2015
Patronage Program, the exact amount of which
will be determined in December. Non-qualified
patronage will not be distributed under the
2015 Patronage Program, a decision that is
based on several factors. More details are
provided at www.fcsamerica.com/docs/pdfs/
customerqandapatronage.pdf. The non-qualified
distribution is considered a permanent investment
in FCSAmerica’s retained earnings.
2013 patronage tax reporting reminder
FCSAmerica distributed cash-back dividend checks
for the 2013 Patronage Program in March 2014. A
1099-PATR Internal Revenue Service (IRS) Form
will be mailed in January 2015 to non-corporate
customers who received a cash-back dividend in
2014. IRS regulations do not require distribution of
1099-PATR forms to corporations.
2015 BOARD ELECTION
Beginning in February, FCSAmerica’s customer-owners
will elect four members to the Board of Directors to serve
four-year terms. Here is the full 2015 election schedule:
• January 16: The Annual Meeting notice is mailed to all customer-owners.
• February 11: The Annual Meeting opens and nominations for open Director positions are accepted from the floor. The Annual Meeting begins at 2 p.m. Central time at Association headquarters, 4979 South 118th Street, Omaha, Nebraska.
• February 27: Ballots are mailed to eligible voting stockholders. Votes are accepted electronically or
by mail.
• March 20: Voting closes at noon Central time.
• March 26: Election results are announced.
The Annual Meeting is open to all FCSAmerica customerowners. To register, contact our legal specialist at
800.531.3905 or by email at $sr@fcsamerica.com.
Register by February 6, 2015. Election results will be
published at fcsamerica.com and in the next issue of
Common Ground.
A VOICE IN BOARD NOMINATIONS
Each year, customer-owners elect a new Nominating
Committee to identify candidates for election to
FCSAmerica’s Board of Directors. This is an opportunity
for customer-owners to contribute to the future success
of the cooperative. To learn more about how you can
become a candidate for the Nominating Committee,
contact our legal specialist at 800.531.3905 or by email
at $sr@fcsamerica.com.
TIME TO REVIEW CROP INSURANCE
Local FCSAmerica offices have been holding meetings
to explain the 2014 Farm Bill and its impact on crop
insurance. Among the topics: the supplemental
coverage option, beginning farmer and rancher
benefits, unit structure and levels of coverage for
irrigated ground.
FCSAmerica crop insurance specialists also will
discuss key considerations for 2015, such as
coverage levels, Trend-Adjusted Option, hail and wind
coverage and supplemental policies. They will share
information about online tools customers can use to
make decisions and access lending and insurance
information.
Attend a crop insurance meeting in your area or
visit with one of our crop insurance specialists
for more information. To request a no-cost,
no-obligation review of your crop insurance
plan, call your local FCSAmerica office or visit
cropinsurancespecialists.com. Our expertise in crop
insurance helps you understand and make coverage
selections that protect your income and support
your marketing decisions.
INTEREST RATES: RISK TO BE MANAGED
While no one knows when the Federal Reserve will
raise interest rates, the consensus of economists is
rates will begin increasing in the middle of 2015,
provided improvements in the economy and labor
market remain on track. AgriBank recently asked the
chief financial officers in the Farm Credit Associations
it serves, including FCSAmerica, for a forecast of
possible rate hikes.
The Federal Funds rate, which determines short-term
rates, has been effectively zero since 2009. The chief
financial officers generally agreed that this rate could
rise to 0.46 percent in the next year and reach 1.89
percent within three years. The chief financial officers
anticipate the 10-year U.S. Treasury yield, currently
just above 2 percent, will increase on average to 2.64
percent in one year, 3.18 percent in two years and
3.82 in three.
Many borrowers have taken advantage of today’s
low interest rates by locking in fixed rates on their
long-term debt. Talk to your local FCSAmerica
financial officer to learn more about managing
your interest rate risk.
MANAGE PROFITS: NEW LOOK
Available to FCSAmerica customers through
AgriPoint on fcsamerica.com, Manage
Profits is an easy-to-use risk management
tool that incorporates breakevens, profit
targets and more. Recent enhancements to
the tool include:
• Livestock module: Create and manage livestock profiles for live cattle, feeder
cattle and lean hogs. Producers also
can track cash sales, brokerage and
payments; set target prices as well as manual targets; and use a target price calculator.
• Crop profiles: Learn about crop
insurance products. Other updates include improved reporting and
enhanced layouts.
• Dynamic reports: Run line-by-line
“what-ifs,” then save and email reports.
• Additional help and support: Watch
video tutorials on using Manage
Profits, read articles and contact
support staff.
TWO FEATURES ADDED TO MOBILE APP
Users of the FCSAmerica Mobile App can
now access two new features quickly and
easily, with no login required:
• Calculator: This feature allows users to
run a loan or lease quote and get
payment and cost per acre/animal
estimates. Users can save and send quotes via text and email, view
amortizations and compare different financing options.
• Office locator: Quickly and easily find contact information or map the location of the FCSAmerica office nearest you.
We continually add features and
functionality to our digital tools to help
customers manage their business
anywhere, anytime. To learn more about
FCSAmerica’s digital tools or to enroll in
AgriPoint, visit fcsamerica.com/toolshed.
PRESORTED
STANDARD
US POSTAGE PAID
OMAHA NE
PERMIT NO. 92
P O B o x 2409
Om a ha , NE 6 8 103-2409
8 0 0 - 8 8 4- FARM
f c s a m er ica.com
LEGISLATIVE WATCH
FCSAmerica is following legislative happenings as
Congress and state Legislatures convene for 2015. As
always, we will offer our expertise and viewpoint to
lawmakers on issues that affect our customer-owners
and agriculture as a whole. To learn more about the
bills and proposed regulations we are tracking, visit
fcsamerica.com and register to receive our e-newsletter
for legislative updates.
2014 FINANCIAL RESULTS COMING
FCSAmerica’s fiscal year ended December 31, 2014. An
electronic copy of the financial results for 2014 will be
posted at fcsamerica.com by mid-March. A printed copy
of the 2014 Annual Report will be mailed to stockholders
by March 31, 2015.
800-884-FARM // fcsamerica.com
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