FOR IMMEDIATE RELEASE
AgriBank Division to Continue Providing Technology, Other Services to Farm Credit Entities After Spin-off
ST. PAUL, Minn., January 29, 2020—SunStream Business Services, a division of AgriBank that provides applications, business services and technology services to Farm Credit entities, received regulatory approval as of February 1, 2020 to become a separate service corporation.
Effective on April 1, 2020, SunStream will be owned by and continue to provide services to AgriBank and 11 Farm Credit Associations, including Compeer Financial, Farm Credit Mid-America and nine Associations that are part of the Centric Technology Collaboration: AgHeritage Farm Credit Services, Delta ACA Farm Credit, FCS Financial, Farm Credit Midsouth, Farm Credit Services of Mandan, Farm Credit Services of North Dakota, Farm Credit of Western Arkansas, Farm Credit Southeast Missouri and GreenStone Farm Credit Services. AgriBank is lender to those Associations, obtaining funds for them and providing them with funding and financial solutions. The Associations provide farmers, ranchers and other customers with credit and other financial services, mainly across a 15-state region in the nation's heartland. In addition, SunStream provides services to other Farm Credit entities that are not part of the ownership group.
"Operating SunStream as a separate service entity will fulfill the goals of its owners to better keep pace with technology changes, manage rising costs, and have a shared ownership and governance structure that will position all the entities for further collaboration and efficiency in business services," said Jeff Swanhorst, AgriBank CEO. "These goals include positioning technology and other services for possible future collaboration with other Farm Credit System providers to achieve even greater economies of scale."
SunStream President Steve Jensen said, "This announcement has made today a bright day for SunStream Business Services. Being a vital part of the Farm Credit System in delivering back-office technology and business solutions allows our customers to further concentrate on rural America, while trusting us to take care of the rest. Becoming an independent service company allows SunStream Business Services to focus on the relentless pursuit of customer service, operational excellence, and innovative solutions, painting a positive outlook for future growth.
"We are excited about our ability to have a positive and lasting influence in rural America."
As of February 1, 2020, the Farm Credit Administration, the System's regulator, granted approval for SunStream to become a service corporation under Section 4.25 of the Farm Credit Act. Under Farm Credit's cooperative structure, any SunStream profits will be either held as retained earnings or returned to its owners in the form of patronage.
SunStream has operated as a division of AgriBank since Jan. 1, 2018. Its approximately 80 employees will remain at the organization's headquarters in St. Paul, Minn.
"AgriBank and SunStream employees have worked well together to ensure a smooth transition, which bodes well for a successful spin-off and continued collaboration," Swanhorst said.
AgriBank is part of the customer-owned, nationwide Farm Credit System. Under Farm Credit's cooperative structure, AgriBank is primarily owned by 14 local Farm Credit Associations, which provide financial products and services to rural communities and agriculture. AgriBank obtains funds and provides funding and financial solutions to those Associations. The AgriBank District covers a 15-state area stretching from Wyoming to Ohio and Minnesota to Arkansas. For more information, please visit www.AgriBank.com.
ABOUT SUNSTREAM BUSINESS SERVICES
SunStream Business Services provides technology and other services to AgriBank, Farm Credit Associations and other Farm Credit entities. These entities all are part of the customer-owned, nationwide Farm Credit System, which supports rural communities and agriculture with reliable, consistent credit and financial services, today and tomorrow. We aim to provide our customers with all the tools necessary to help them succeed by leveraging common services and technologies to their advantage. For more information, visit www.SunStreamServices.com.