Minnesota-based AgStar Financial Services has proposed a merger with Omaha-based Farm Credit Services of America.
Last month, Farm Credit Services accepted a buyout offer from Dutch-based Rabobank. But the deal has raised concerns from some borrower-stockholders. The Omaha bank serves farmers and ranchers in four states Iowa, Nebraska, South Dakota and Wyoming.
AgStar is part of the federal Farm Credit System. Under its proposal, borrowers in Farm Credit Services would continue to own and control the company. They also would receive a cash distribution of $650 million.