High Plains Farm Credit President and CEO, Kevin Swayne, kicks off 2023 with an update on agricultural land values, Stockholder Appreciation events, and the largest-ever cash patronage dividend payout to our stockholders.

As an agricultural landowner, it’s important to understand how the value of your land can impact the patronage dividends you receive from your cooperative. Agricultural cooperatives are a popular way for farmers and ranchers to collectively market their products, purchase supplies, and access financing. One of the key benefits of being a member of a cooperative is receiving patronage dividends, which are payments made to members based on the cooperative’s profits.

The value of agricultural land plays a critical role in determining the patronage dividends that members receive. In general, the higher the value of a member’s land, the higher their patronage dividend will be. This is because patronage dividends are often calculated as a percentage of the member’s purchases or sales with the cooperative, and the value of their land is a key factor in determining the amount of those purchases or sales.

In addition to its impact on patronage dividends, the value of agricultural land can also have broader implications for the agricultural industry as a whole. Land values are influenced by a variety of factors, including commodity prices, interest rates, government policies, and population growth. As land values increase, it becomes more difficult for new farmers and ranchers to enter the industry, as the cost of purchasing land can be prohibitively high. This can lead to a consolidation of agricultural operations and a reduction in the number of independent farmers and ranchers.

2023 land values sky-rocketed within our trade territory. Crop ground was up nearly 40%, pasture land was up 29%, and CRP ground was up 15%. Irrigation was regionally specific on whether it was up or down this year. Strong cash positions, recovery of commodity markets, recreational sales, and out-of-state buyers all contributed to the land value increases. Tight monetary policy and higher interest rates will potentially slow the increases in the future.

Thank you for your response to our call for volunteers to serve as future Board and Nominating Committee members! We continue to have an active and involved stockholder base. The Nominating Committee met in February to determine our candidates for the 2023 Board of Directors and the 2024 Nominating Committee.

Candidates are listed by open seat and alphabetically by name. The election for each position is conducted independently with each voting stockholder given an opportunity to vote for each of the four open positions.

In a few weeks we will be handing out the largest-ever cash patronage declared by your member-elected Board of Directors. The record $15.4 million cash patronage will return 46% of 2022 earnings and reduces the effective interest rate on eligible loans by more than 1%. It definitely pays to be a customer at High Plains Farm Credit!

At the end of March, we will be holding our annual Stockholder Appreciation events. All High Plains Farm Credit customers are invited to come and enjoy a great ribeye steak dinner and enjoy the fellowship of your neighbors, local directors, staff and management team. We will be expressing our gratitude and appreciation for your business as we shake your hand and give you your patronage check. If you aren’t a member, please call your local branch office to find out how to join the High Plains family. Thank you for your business and I look forward to seeing all of you in the next few weeks.

High Plains Farm Credit is committed to being a dependable source of credit and a proud, trusted partner in your operation. We appreciate your business and will continually strive to earn your business in the future.

– Kevin