FCSA PULLS PLUG ON RABOBANK BUYOUT DEAL

Too much flack from the farming community

Dutch cooperative banking giant Rabobank announced late this week that Farm Credit Services of America (FCSA) of Omaha, NE, has terminated its acquisition agreement, according to media reports.

When FCSA and Rabobank originally announced an agreement in principal under which Rabobank would acquire FCSA, taking it out of the national farm credit system, it created a bit of a political firestorm in the Midwest service area served by FCSA. Critics of the proposed buyout, which included the National Council of Farmer Cooperatives, contended the loss of FCSA from the national farm credit network would mean the unraveling of the entire system. For its part, Rabobank argued the sale would allow Rabobank to offer a broader array of farm lending services than current available to FCSA shareholders.

Rabobank said it is not abandoning its plans for U.S. expansion, and will continue to push for a larger presence in U.S. ag banking, including the potential for other acquisitions.