Letter to Shareholders

Farm Credit West had a solid year of performance in spite of the dramatic events of 2020 that presented significant challenges, none of which could have been anticipated. It is good to have 2020 behind us, and we look forward to progress in 2021. To thank you for your business, we were pleased to distribute a total combined patronage dividend to customerowners equal to 150 basis points (bps) or 1.5% of eligible average outstanding loan balances in 2020. This patronage dividend includes the special pandemic-related relief payment of 50 bps declared by the Board of Directors mid-year and paid during the summer of 2020. The combined 150 bps patronage distribution for 2020 represents the highest payout Farm Credit West customer-owners have received since the program’s inception in 2002. Your Board of Directors determined this level of patronage was justified due to our continued strong earnings and our customers’ significant need. While a mid-year patronage distribution is unprecedented in our Association’s history, the Board of Directors and management team felt strongly that swift and immediate action was required to bolster the agricultural industry during such challenging times.

The combined patronage on 2020 earnings equals a record $185.0 million in cash and the 20th consecutive year of paying patronage to our customer-owners. With this most recent cash distribution, Farm Credit West has paid over $1 billion in patronage dividends

BOARD OF DIRECTORS

Joseph C. (Joey) Airoso Robert E. Amarel, Jr. Teresa Castanias Mark A. Cook Catherine Fanucchi Douglas C. Filipponi Craig Gnos

to customers. As a member of the Farm Credit System, Farm Credit West is a customer-owned cooperative. As a cooperative, we are able to distribute earnings (in excess of what is necessary for us to retain as capital to support loan growth) to you, thereby reducing your borrowing costs. Patronage represents one of the three pillars of Farm Credit West’s value proposition. The other two pillars are to provide highly competitive rates and to deliver products and services in an extraordinary way. In 2020, we continued to adapt to changing market conditions to ensure that we were able to continue to meet our value propositions.

We recognize the COVID-19 pandemic and related closures have resulted in significant unforeseen hardship for agriculture in California and Arizona. As a relationship lender, Farm Credit West is here to support you through good times and bad. We understand the challenges the agricultural industry is facing and are constantly assessing our business to identify ways to better meet your needs. While we took necessary steps to limit the number of staff in our branch offices and reduced business hours to protect our staff and customers, we continued to work remotely to meet your borrowing needs. Just as changes were made in our daily business, necessary steps have likely been taken in your operations to protect your families, friends and employees. Furthermore, many of you are also managing drastic changes in the marketplace as traditional distribution channels and consumer demand remain unpredictable. Be assured we are doing everything in our power to support you during these challenging times.

Farm Credit West’s performance is connected to our customers’ success and long-term focus. We value our relationships with our customers because we know these relationships often span several generations. In the same way as our customers, we continually look for improvements that benefit the next generation of farmers and ranchers. Over the next couple of years, Farm Credit West will continue to implement new technology systems to streamline how we conduct business with you, while at the same time ensuring advanced security around our business practices. As fraud attempts have increased and become more sophisticated, especially in the COVID-19 environment, we continue to monitor for these attempts and update our protocol accordingly to protect the Association and our customer-owners.

In 2019, we took over advanced responsibilities for our own debt management from our funding bank. This greatly benefited our customer-owners during 2020 as we were able to effectively manage our loan pricing practices and liquidity to ensure we could meet your borrowing needs even during disruptive markets. In 2021, we will be implementing a new online banking platform with expanded capabilities for our customers that will allow you to make loan payments and move funds securely through electronic means without having to leave your home or business.

Robert Hansen Blake Harlan Tom Ikeda Colin Mellon Mark Osterkamp Barry Powell Brian Talley Sureena Bains Thiara

We are very proud of our management and staff for all that was accomplished in 2020. They continued to give their best during these extraordinary times. While our multi-year plan to update and improve our technology and processes was temporarily slowed due to the pandemic, we continue to push forward. We still have much to do and look forward to additional opportunities in 2021. Finally, our mission for more than 100 years—to ensure that farmers, ranchers and agribusinesses have a consistent, affordable and reliable source of funding—has not changed and did not diminish under COVID-19, despite the challenges that agriculture faces. This mission requires our continued focus.

On behalf of the Farm Credit West Board and staff, thank you for your business. It has been our honor to serve you throughout this very unusual year, and we look forward to a strong relationship for many years to come. Thank you for working tirelessly to feed the world.

Sincerely,

SUREENA S. BAINS THIARA Chair of the Board of Directors

President and Chief Executive Officer

Even as Farm Credit West customers responded to the challenges of 2020 at their own farms and ranches, there was an acute awareness of the often-devastating impacts the pandemic was having in their own communities.

From starting a school for migrant students that provided internet access for their online education to securing COVID-19 testing in areas lacking access, many of our customers rose to the occasion to meet the needs of those most significantly impacted.

These actions inspired us, motivating our Association further to find meaningful solutions to support our members through a very challenging year. Together, we move forward, stronger than before, ready for whatever the future may bring.