Oklahoma AgCredit Company Profile

Background

Oklahoma AgCredit is a member-owned cooperative dedicated to providing reliable and consistent credit and financial services to farmers, ranchers, rural businesses, and homeowners across 60 counties in eastern and central Oklahoma. As part of the Farm Credit System established in 1916, the organization focuses on supporting rural communities and agriculture, ensuring financial stability and growth for its members.

Key Strategic Focus

Oklahoma AgCredit's strategic objectives center on delivering tailored financial solutions to the agricultural sector and rural communities. The cooperative offers a range of products, including loans, leases, and financial services, designed to meet the unique needs of its members. By maintaining a strong capital position and leveraging its cooperative structure, Oklahoma AgCredit aims to provide competitive interest rates and patronage returns, effectively reducing borrowing costs for its members.

Financials and Funding

As a cooperative, Oklahoma AgCredit does not take deposits but raises funds by selling debt securities through the Federal Farm Credit Banks Funding Corporation. This approach ensures access to competitive interest rates, irrespective of financial conditions in the agriculture industry. The cooperative has a capital position exceeding $344 million, enabling it to return approximately $100 million to its members since 1997 through its Patronage Program. In 2022, Oklahoma AgCredit distributed a record $14 million in patronage returns, effectively reducing the average member's interest rate by one percent.

Leadership Team

Oklahoma AgCredit's leadership team comprises experienced professionals dedicated to serving the cooperative's members:

Bill Davis, Chief Executive Officer

Appointed CEO on May 24, 2023. Previously served as Executive Vice President of CoBank’s Farm Credit Banking Group and Chief Credit Officer for CoBank. Brings over 40 years of experience in the Farm Credit System.

Steve Davenport, Executive Vice President/Chief Credit Officer

Over 31 years of experience in the Farm Credit System, serving in various credit-related roles.

John Burk, Chief Lending Officer

Appointed CLO in January 2018, with over 17 years of experience in the Farm Credit System.

Joe Voth, Chief Business Development Officer

Appointed CBDO in May 2024, with over 15 years of experience in the Farm Credit System.

Asia Garcia, Chief Operating Officer

Leadership Changes

In May 2023, Bill Davis was appointed as Chief Executive Officer, succeeding Patrick Zeka, who resigned at the end of March 2023. Davis brings extensive experience from his previous roles at CoBank and other Farm Credit institutions.

Competitor Profile

Market Insights and Dynamics

The agricultural financial services market is characterized by a network of cooperatives and financial institutions providing specialized lending and financial products to farmers, ranchers, and rural communities. The market is influenced by factors such as commodity prices, weather conditions, and government policies affecting agriculture.

Competitor Analysis

Key competitors in the agricultural financial services sector include:

Capital Farm Credit: Offers a range of financial services to agricultural producers and rural homeowners.

AgCountry Farm Credit Services: Provides loans and financial services to farmers and ranchers in the Upper Midwest.

Northwest Farm Credit Services: Serves agricultural producers in the Northwest with financial products and services.

Farm Credit Bank of Texas: Supplies funding and services to local Farm Credit associations in Texas and other states.

American AgCredit: Delivers financial services to agricultural and rural customers across several states.

Farm Credit Services of America: Provides credit and insurance services to farmers and ranchers in the Midwest.

AgFirst Farm Credit Bank: Offers funding and financial services to local Farm Credit associations in the Eastern U.S.

These competitors focus on providing tailored financial solutions to the agricultural sector, leveraging their cooperative structures to offer patronage returns and competitive interest rates.

Strategic Collaborations and Partnerships

Oklahoma AgCredit collaborates with CoBank, its funding bank, to access capital markets and provide competitive loan products to its members. Additionally, the cooperative partners with other Farm Credit institutions to support rural communities and agriculture. For example, in May 2024, Oklahoma AgCredit, CoBank, and Farm Credit of Western Oklahoma jointly donated $100,000 for wildfire relief efforts in Western Oklahoma, demonstrating their commitment to supporting rural communities in times of need.

Operational Insights

Oklahoma AgCredit's cooperative structure and strong capital position enable it to offer competitive interest rates and patronage returns, effectively reducing borrowing costs for its members. The cooperative's focus on personalized service and understanding the unique needs of agricultural producers and rural communities provides a distinct competitive advantage in the market.

Strategic Opportunities and Future Directions

Oklahoma AgCredit aims to continue supporting rural communities and agriculture by providing reliable and consistent credit and financial services. The cooperative plans to leverage its strong financial position to offer competitive loan products and patronage returns, ensuring the success of its members. Additionally, Oklahoma AgCredit is committed to evolving to meet the changing needs of its members and the agricultural industry, positioning itself for continued growth and success in the future.