'country banking'
Robo Ag Services:
Operating experts
Rabo Agrifinance:
A national ployer
Committed to the game
Pro fitable pair
Background: Founded in 1986 as Ag Services of
America. Based in Cedar Ealls, Iowa. Employs
116 peoplc'.
Core Business: In addition to its primary focus ofpro-
viding operating credit to producers and administering
financing programs for input retailers and suppliers, Ag
Services also offers erop insurance and otber related
agricultural services.
Client Base: Corn and soybean growers in the mid-
western USwhose farms typically generate more than
US$250,000 in revenues.
Statistic: The 2005 erop season saw A# Services origi-
nate approximately US$265 million in loans.
Background: Started in 1913 hy Equitahle Life Insurance
bought in 1997 by Australian real estate investment company,
The Lend Lease Group. Based in St. Louis, Missouri. Employs
80 people.
Core Business: Serving a national network in all major US agri
cultural regions, Rabo Agrifinance concentrates on mortgage
financing. It continues to originate farm loans, sell them to
institutional investors, and manage them for a fee, while devel-
oping a primary business of originating loans directly for RL
Client Base: The top 20 to 30 percent of agricultural producers
in the US.
Statistic: Upon acquisition, Lend Lease had US$2.6 billion in
loans under management.
Notable for its 90-year history in pro-
viding long-term mortgage credit, it was
early 2002 when Lend Lease was identi-
fied as a desirable partner for the
Rabobank Group. But it would be
another 18 ntonths before the deal
would close. Owned by the Australian
Lend Lease Group, Lend Lease Agri-
Business was the Group's only agricul
tural entity. By November 2002, the
Group began to sell its US businesses.
Rabobank was quick to notice and, witlt
its established commitment to Food and
Agribusiness (F&A), emerged as the best
bu yer. After intense rounds of legal dis-
cussions and a number of stumbling
blocks that dated back to terms set by
original owner Lquitable Life Insurance,
R1 teams closed the deal on September
30, 2003. Rl purchased 100% ofshares
in an all-cash transaction for approxi
mately US$45 million, and Rabo
Agrifinance was born. (See above for
more background.)
Through its strong national base, Rabo
Agrifinance provides a broad range of
financial products to the top agri-pro-
ducers in the US. But because the Lend
Lease Group did not invest its own
funds, US real estate agricultural opera-
tions were totally reliant on third-party
capital for investment into agricultural
lending. This limited growth, according
to Rabo Agrifinance CEO Rick
Henderson. 'We were restricted in the
amount of capital and the products we
could offer,' he says. 'Rabobank brings a
number of opportunities to our organi-
zation: capital for investment, a history
of ag lending, and a dedicated focus to
the F&A sector. When you combine that
with the Rabobank Group's financial
strengths, you have crossed many of the
hurdles you need to grow sales of finan
cial products.'
The Word I 11
