Project HORIZONS:  A Plan for the Future

Planning what's on the horizon for Farm Credit

by Dean W. Moreau, president and CEO, Yankee Farm Credit

In 2006 the Farm Credit System will celebrate 90 years of pursuing its mission to enhance the quality of life on the farm and in rural America by providing sound, constructive and dependable credit for a variety of financial needs. Looking ahead to this milestone, the System last year began a national strategic planning initiative called HORIZONS.

I’m sure you’re aware that almost every aspect of rural America has undergone dramatic change in the years since the Farm Credit System was established. Today’s agriculture is more diverse, more complex, more dependent on nonfarm income and more consumer driven than ever before. Recognizing this, Farm Credit embarked on HORIZONS to help us better understand the changing needs of U.S. agriculture and rural America, and how we could best meet these new marketplace needs.

A number of HORIZONS committees and task forces with more than 100 individuals from across the System, including Sue Kelley from Yankee, have participated in this planning effort.

The Farm Credit System with $117 billion in assets is uniquely positioned with a national network of locally owned cooperative lending associations and banks dedicated to only one sector: agriculture and rural communities. We believe our role is vital to the continued success of U.S. agriculture and also to the future vitality of our nation’s rural areas. Our HORIZONS research provides substantial evidence to support both beliefs.

The HORIZONS findings show that globalization and technological advances continue to drive change in the food system and in rural communities, which increasingly are dependent on nonagricultural and nontraditional industries. Additionally, interdependence among farmers and farmer-owned businesses, and other agribusinesses continues to grow. In short, access to capital to meet these needs will remain critical as agriculture and rural America continue to grow and evolve in the future.

"Farm Credit embarked on HORIZONS to help us better understand the changing needs of
U.S. agriculture and rural America ..."

Farm Credit institutions currently offer a range of financial solutions and programs to serve agricultural producers, including young, beginning and small farmers, the service businesses they rely on, rural residents and some of the rural infrastructure that supports all of the above.

Unfortunately, our HORIZONS research is pretty clear: rural America cannot fully benefit from Farm Credit’s financial strength and expertise because of current limitations on the System’s authorities to meet the changing needs of its customers.

Yankee, along with the other borrower-owned institutions that make up the Farm Credit System, are reviewing the HORIZONS findings and proposed recommendations in order to develop a consensus within the System about what specific changes in our authorities are required for Farm Credit to continue to best serve rural America and secondly, to take whatever action is necessary to make those new authorities a reality.

This implementation phase of HORIZONS requires a substantial commitment by local association boards, management and probably customers as regulatory or legislative changes become necessary. I’ll periodically update you on HORIZONS’ progress.

In my almost 29 years with Farm Credit, this project has been the most well run and the most comprehensive. It also has the best opportunity for lasting success. I’m hopeful we will be able to serve existing customers with new products and to serve new customers through new initiatives.  

This letter appeared in the Fall 2005 issue of Financial Partner (F.P.) magazine, Yankee Farm Credit's customer publication. Click here if you would like to start receiving F.P. magazine in the mail.

© 1999-2005 Yankee Farm Credit, ACA. All rights reserved.