Letter from Chair
A Business Vision by Farm Credit Leaders
Al Barkley
Chair, Plan Sponsor Committee
The opportunity and the need to bring Farm Credit Foundations together were clear, and with that, they saw value in a central service group who could serve these like-minded organizations. They wanted to take action that would really speak to a commitment to Farm Credit’s most valuable asset – our people.
In 2005 and 2006, the business vision for Farm Credit Foundations emerged when CEOs from banks and associations saw a Farm Credit System that was changing significantly. They knew the future was going to look very different. With continued consolidation, the number of System organizations had decreased by 60 percent over the previous 15 years.
Their vision was to consolidate the benefit plans and management of those plans into an overall structure that would be solid, yet flexible enough to support the change that was underway. The leaders knew we would be stronger together than apart. The opportunity and the need to bring Farm Credit Foundations together were clear, and with that, they saw value in a central service group who could serve these like-minded organizations. They wanted to take action that would really speak to a commitment to Farm Credit’s most valuable asset – our people.
As discussions continued, leaders and board members came together around the concept of a central service group and the kind of scale required to negotiate and sustain benefit plans that we could ensure would be at or slightly above the competitive market. We knew savings would be created by the economies of scale, and we wanted to level the playing field and help Farm Credit entities compete successfully for talent against anyone. But the real driver was the value of bringing us closer together and maintaining the integrity of the Farm Credit System.
Right Team is in Place at Foundations
Today, that central HR service group is in place, and we have a very capable management team. We’ve had the best people in place at the right time to achieve the vision of Farm Credit Foundations. Operations and service quality are strong, and I am confident that these managers – and the entire Foundations team – will help us move forward into the future.
Positioned for the Future
When Foundations came together in 2007, the Plan Sponsor Committee was asked to determine what structure was best, given the reality of the changes underway. A third-party was commissioned two years ago to examine structural options and report back to the Committee with the analysis. The consultant worked through the structure as it existed inside of AgriBank, and looked long-term at what might be best for employers and employees. After careful study, the Plan Sponsor Committee advanced a recommendation that we form a 4.25 Service Corporation. The boards of directors of our participating employers are currently taking action on that recommendation, and I am confident we will have overwhelming agreement to take this HR business forward.
Thank you for supporting the Farm Credit Foundations vision. Farm Credit is changing, and Farm Credit Foundations is prepared to move forward in sync with the System and the needs of our people.
Sincerely,
Al Barkley
Chair, Plan Sponsor Committee;
Director, Farm Credit West