Texas Farm Credit Named Agribusiness of the Year

Timber Industry

If money grew on trees, East Texas timber producers would have it made in the shade. But in the real world, the capital-intensive timber industry often partners with financial institutions in order to reach its goals.

“One thing that’s unique about the industry is there are multiple products — everything from timberland to the timber itself, as well as equipment and processing facilities. Every deal is different. We tailor our financing and repayment schedules to match our customers’ harvest cycles.”

New Office in the Woods

To highlight the timber industry, the branch recently relocated to a 2.5-acre wooded property on the eastern edge of Nacogdoches. One sunny morning last month, about 150 people gathered to celebrate the cooperative’s new chapter.

Cutting the red ribbon at the branch’s new building at 3338 Park St. that day was a dream come true for Shannon. State-of-the-art technology, ample meeting space and lighter traffic are some of the benefits customers will notice at the new facility, which was built with native woods such as cypress, walnut, hickory, pine, white oak, magnolia and spalted pecan.

“Their knowledge of the industry is just invaluable,” Shannon said of the staff. “Timber is a commodity like any other crop, and the valuation of that product is very important to our clients for income, tax planning and business plan purposes.”

In addition to serving the timber industry, Texas Farm Credit finances rural real estate, cattle and poultry operations, homes and agricultural equipment, and offers a variety of insurance services. It even offers flexible underwriting for young, beginning and small farmers and ranchers.

Headquartered in Robstown, Texas, the lending co-op is part of the nationwide Farm Credit System, which was established in 1916 with a mission to provide reliable credit for agriculture and rural communities.

Giving Back to the Community

Farm Credit’s mission goes well beyond financing.

“We also have a sense of responsibility to be good community members,” Shannon said. “We see giving back to the community as an important part of our job, and are all involved in many activities in Nacogdoches County.

Texas Farm Credit also gives back by sharing its earnings with its borrowers, who are co-op members and owners. A borrower with an interest rate of 5 percent in 2017 effectively paid just 4.2 percent as a result of the patronage dividend distributed in April.

“That’s another way we really bring value to our customers,” Shannon said.