To all AgriLand Stockholders,

Given the extraordinary events that have occurred in the global financial markets, you may be wondering about the strength of AgriLand, FCS, and our ability to meet our customers’ borrowing needs.

Rest assured — we remain profitable and stable. AgriLand currently has plentiful access to Farm Credit funds to lend to creditworthy borrowers.

AgriLand is part of the Farm Credit System, the nation’s oldest and largest source of agricultural and rural financing. The System:

• receives its funds from the sale of AAA-rated Farm Credit bonds in the nation’s money markets
• has never branched into the sub-prime mortgage market
• does not have publicly traded stock, unlike Fannie Mae and Freddie Mac
• is a network of borrower-owned rural lending cooperatives
• distributes any residual earnings to borrowers in the form of patronage. In 2007, the Farm Credit System returned $571 million in cash patronage to borrowers.

Nationally, Farm Credit is a financially strong, tightly regulated $207.5-billion lending organization, which recorded $2.37 billion in net income during the first nine months of 2008. At September 30, 2008, 97.9 percent of all Farm Credit loans were ranked in the highest credit-quality classifications.

Similarly, AgriLand reported strong earnings and growth through September 30, 2008. Our capital position is solid, and we continue to employ proven underwriting practices.
AgriLand has 75 years of experience providing funds and services to our customers throughout East Texas, even through changing market conditions. During the present credit crunch, we will continue to fulfill our only mission — to finance agriculture and rural America.

With your 2009 Board of Directors, 2009 Nominating Committee, Farm Credit’s stability and AgriLand’s commitment to rural communities in our territory, we will continue to be a reliable source of financing for agriculture and rural lending.
 
If you have any questions or concerns about your lending cooperative, please feel free to contact me.

Sincerely,

Roger Brist
Chief Executive Officer
AgriLand Farm Credit
903.593.0151