AgStar has grown with local ag economy
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aul DeBriyn, president and CEO of AgStar Financial Services, has been at AgStar for more than 26 years and has seen firsthand how AgStar supports local farmers and commercial producers in a global marketplace dictated by supply and demand. “People have gone more toward corn than soybeans because of pricing. Corn is the Paul DeBriyn bigger driver than soybean due to the combination of demand for corn for swine, ethanol and exports,” said DeBriyn. On any given day, the price of corn here is higher than the price on the Chicago Board of Trade and the price can be as much as $2 more per bushel, explained DeBriyn. According to DeBriyn, corn prices had gone down some this summer, because people predict a good harvest across the U.S. and in Minnesota, it’s predicted that the 2013 corn crop will be the second largest corn crop ever. Overall, the Mankato area is expecting a good crop due in part to moisture, noted DeBriyn. AgStar is part of the Farm Credit system. With 23,000 clients, operations in 69 counties in Minnesota and western Wisconsin, AgStar manages more than $8 billion in loan and lease assets and is one of the larger Farm Credit associations in the country. Headquartered in Mankato, AgStar employs 200 people here out of 610 employees total. The Star Tribune ranked AgStar number seven in its 100 Top Workplaces in 2013. Due to a series of mergers, Mankato became the logical choice for AgStar headquarters. “Agriculture is the second largest employer in the state of Minnesota. Mankato is at the heart of it,” said DeBriyn.
Created in 1916 by Theodore Roosevelt, the Farm Credit System was charged with providing loans and financial services to rural America. The government seed money was paid off in 1958. Today, AgStar is operated as a cooperative owned by client stockholders. AgStar brings money from investors in the global marketplace to rural counties such as Blue Earth and Nicollet. AgStar’s financial services include loans, leases, crop insurance and life insurance to farmers, as well as mortgages to residents in rural areas. AgStar works with community banks and equipment dealers to make it easy for farmers to access AgStar services. With a public mission to support and enhance rural America, AgStar delivers practical tools to farmers to help them achieve their goals. AgStar Edge offers classes, workshops, webinars, online tools and calculators, email newsletters, industry insights and professional guidance. AgStar also invests deeply in its service area: credit and outreach to young farmers, programs for women in agriculture, loans for minority farmers, education for young farmers, programs for women in agriculture, For instance, AgStar created GroundBreakers, a program that includes starter loans with reduced interest fees, education opportunities such as agricultural business tours, discussions, conferences, and the support of local groups such as Future Farmers of America. “We put a lot of focus on young, beginning farmers,” said DeBriyn. The AgStar Fund for Rural America reinvests money into rural communities. AgStar gives back 1 percent of its net earnings to rural communities in the form of grants. “Blue Earth and Nicollet gets a good share. We provide support for young beginning farmers, education to make farmers more successful, and provide a lot of resources back to Nicollet and Blue Earth counties,” said DeBriyn.
Greater Mankato Agricultural Region
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n a series of meetings convened by Greater Mankato Growth, a group of business owners, educators and agricultural organizations estimated that the agriculture activities of more than 13 counties have an economic relationship to the Mankato-North Mankato MSA. The group coined the term Greater Mankato Agricultural Region (GMAR). The GMAR contains 5.9 million acres of farm land and includes: Blue Earth, Nicollet, Brown, Cottonwood, Faribault, Jackson, Le Sueur, Martin, Redwood, Renville, Sibley, Waseca and Watonwan. The GMAR also includes parts of Lyon, Murray, Nobles and Yellow Medicine counties. The GMAR is home to: • $6.3 billion in agriculture sales* with a $10.1 billion overall economic impact** • $4.4 billion in agriculture service and supplies*** • Nearly 17,000 farms*** * Bureau of Economic Analysis, 2011 ** Bureau of Economic Analysis, RIMS II Mankato-North Mankato multiplier *** USDA 2007 Census of Agriculture
Compiled by Greater Mankato Growth
MN Valley Business • october 2013 • 23