Embedded in the rich soil of our local agricultural tradition, Plains Land Bank stands tall as a leading lender for the Panhandle in the Farm Credit System (FCS). But what’s the secret behind PLB’s success within the FCS? And how does this collaborative approach benefit the hardworking farmers, ranchers, and rural communities of the Texas Panhandle?
A History as Deep as Our Heritage
The Farm Credit System (FCS) originated in 1916 when President Woodrow Wilson signed the Federal Farm Loan Act into a law. This act established a nationwide network of rural lending cooperatives to provide reliable and consistent credit to farmers, ranchers, and rural communities. The FCS was created in response to the scarcity of long-term farm loans and high interest rates that were crippling agriculture in the early 1900s. Over the past century, the FCS has evolved into a dynamic network of financial institutions that support agriculture and rural America.
Plains Land Bank was created under the Federal Farm Loan Act of 1916 as part of this system. It operates as a cooperative within the Farm Credit System, serving the Texas Panhandle region. Like other FCS institutions, Plains Land Bank’s borrowers become stockholders in the association, giving them a voice in decision-making and allowing them to benefit from patronage programs. This structure enables Plains Land Bank to provide competitive interest rates and specialized agricultural lending services while maintaining a deep understanding of local, rural, and agricultural needs.
Bringing Farm Credit System Benefits to the Panhandle
As a member of the Farm Credit System, Plains Land Bank offers its stockholders unique advantages beyond traditional lending. When customers borrow from Plains Land Bank, they become part-owners of the institution, giving them a voice in decision-making and aligning the bank’s interests with their own. This cooperative structure allows the bank to focus on long-term stability and customer needs rather than short-term profits for external shareholders.
The most tangible benefit for stockholders is the patronage program. At the beginning of each fiscal year, Plains Land Bank distributes a portion of its earnings back to its stockholders as patronage dividends. This effectively lowers the cost of borrowing and can provide a significant financial boost to farmers, ranchers, and rural residents, empowering them to pay down loans, expand their businesses, or invest in their families’ futures. For example, in early 2024, Plains Land Bank returned an impressive $9.5 million in patronage cash to its stockholders from the 2023 calendar year.
Plains Land Bank offers a century-long commitment to serving rural communities and the ag industry in the Texas Panhandle. As a cooperative, the bank has maintained a unique relationship with its customers for over 100 years, providing unparalleled customer service and direct access to loan officers who put the relationship with their stockholders first.
Unlike many financial institutions, Plains Land Bank ensures a personal touch throughout the lending process ! never passing customers off to closers or selling loans to other banks. By choosing Plains Land Bank, customers become part of the Panhandle’s rich history and partnership with the Farm Credit system. This partnership creates opportunities to build their legacy and “Own a piece of Texas.”
