American AgCredit grows by lending to farms

  • On this vacant lot, American Ag Credit officials, from left, Terrl Lindley, chief market officer, Ron Carli, CEO and Byron Enix the COO, want to build a brand new building (drawing) across from Airport 12 Cinemas in Santa Rosa, Thursday Sept . 26, 2013. (Kent Porter / Press Democrat) 2013

In his early days in farm lending, Ron Carli helped a customer borrow $500,000.

Three decades later, the same customer obtained a $50 million loan from American AgCredit, the Santa Rosa-based farm cooperative that Carli heads.

For Carli, a Cotati farm boy who switched from teaching high school ag classes to financing dairies and vineyards, that example helps explain why American AgCredit transformed itself from a small farm credit association to Sonoma County's largest financial institution.

Agriculture operations across the nation grew in scale and required far more capital. The local associations that belong to the federally-sponsored farm credit system had to grow or be left behind.

"The system had to change," said Carli, president and chief executive officer.

American AgCredit exists to help farmers grow their businesses. But few agriculture operations have grown faster than the nonprofit that is now the nation's sixth-largest farm credit association.

With $6 billion in assets and 422 employees — including about 110 in Santa Rosa — the association has been on a blazing growth spurt for more than two decades.

Much of its growth came through mergers and acquisitions, including one four years ago that was unprecedented for linking up farm credit associations in two different regions of the country: Kansas and California.

American AgCredit, which now has 33 branches in six states, is preparing for even more growth. The best evidence is its plan to build a new 120,000-square-foot headquarters next year off Airport Boulevard, a complex that might house other wine, farm and tourism groups in a one-stop agricultural center.

The three-story project, proposed across Aviation Boulevard from the Airport Stadium 12 cinemas, is slated this week to go before the county's design review board.

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