Keystone Farm Credit Reports Another Strong Year
ANDY ANDREWS
Lancaster Fanning Staff
NEW HOLLAND (Lancaster
Co.) Keystone Farm Credit had
an outstanding year with an earn
ings increase of 22 percent from
last year to more than $6.5 million.
That’s not the only good news.
According to the financial services
cooperative’s president, the asso
ciation took advantage of funds
allocated by the association to
ensure automated and other ser
vices are year 2000-ready.
“We will continue to test to
ensure (the system) moves
smoothly into the next century,”
said Philip W. Kimmel, president
of the cooperative.
Kimmel spoke Tuesday night to
approximately 575 patrons and
friends at the annual stockholders’
meeting at Yoder’s Restaurant in
New Holland.
This was the second consecutive
year for the earnings increase. The
amount of new loans increased 6
percent. Kimmel outlined several
other factors which contributed to
a good year for the cooperative.
Key capitol net worth continued
Farm Credit
Elects Directors
AVONDALE (Chester Co.) Keystone
Farm Credit, headquartered here, released the
names of new directors elected early this
week at two stockholder meetings, one in
Fogelsville and the other in New Holland.
In region 1, comprised of Berks Bucks,
Carbon, Chester, Delaware, Lehigh, Monroe,
Montgomery, Northampton, Philadelphia,
Pike, and Schuylkill counties, newly elected
position 1 director is Kenneth L. Hershey,
Oxford. Hershey, farming for 45 years, with
150 acres, serves as vice chairman of the
Lower Oxford Township board of
supervisors.
In position 2, new director is Rodger L.
Wagner, Oley. Wagner, farming for 39 years,
has a dairy operation with 180 cows, ISO
replacement heifers, and 750 acres of com,
alfalfa, and soybeans. He is a member of the
Berks County Dairy Farmers Association and
Pennsylvania Farm Bureau, Fleetwood
Grange, Cenex Breeders Cooperative, and
others. He serves on the Oley Township Ag
Advisory Committee.
In region 2, comprised of Dauphin, Lancas
ter, and Lebanon counties, newly elected pos
ition 1 director is Mervin Sauder, Lititz. Saud
er has been fanning for 41 years. He has a
dairy farm and also feeds hogs and operates a
layer house. He is pest president of the Lan
caster County Holstein Association.
hi position 2, Dale R. Hershey, Manheim,
was elected director. Hershey has been farm
ing for 19 years. Hershey is a partner in Her
shey Brothers, a dairy. They milk 200 cows
and farm 500 acres. Hershey is a member of
Akron Mennonite Church, Manheim Young
Farmers Association, Pennsylvania Farm
Bureau, and Land O’ Lakes Cooperative,
where he serves as cooperative unit delegate.
Hershey has served as president and vice
president of the Lancaster County Coopera
tive Extension board and secretary of the Lan
caster County DHIA.
Nominating committee election results are:
region 1, position 1, Floyd W. Kurtz, Fleet
wood, Berks County; position 2, Leon D.
Kurtz, Cochranville, Chester County; region
2, position 1, Leon E. Ziegler, Myerstown,
Lebanon County; position 2, Earl S. Weaver,
New Holland, Lancaster County.
On the ballot for the proposed bylaw
change, stockholders voted yes for the bylaws
to be amended as presented in the annual
meeting information statement
MILK
to grow. This month, $5.4 million,
representing more than 18 percent
of the amount of interest earned by
the association on borrower loans
in 1998, will be returned to the
cooperative’s stockholders as
patronage.
Patronage refund is 20 percent
higher than 1997.
Kimmel said that checks will be
mailed to stockholders “sometime
next week,” and will be paid as fol
lows: 30 percent of the refund will
be paid to each stockholder in
cash. The remaining 70 percent
will be held by the association as
allocated surplus.
In the financial statement avail
able at the meeting, Kimmel noted
in his message that “it is the
board’s intent to revolve or pay the
1998 allocated surplus after five
years," he wrote.
“During this time, these pro
ceeds are used to help the associa
tion maintain a sound financial
position and reduce the associa
tion’s cost of borrowing the funds
which we, in turn, loan to our
customers.”
Kimmel noted that the com-
pany’s financial strength con
tinued to grow, pointing to con
tinued growth in the financial man
agement service and real estate
appraisal services. The coopera
tive’s alliance with American
Express Financial Advisors con
tinues to be an industry model.
And adjustments were made to
continue the strong position.
To do so, Kimmel noted, some
long-term strategies need to be
considered. He said that the board
is examining the mergers of sever
al Farm Credit boards throughout
the region, decisions he said were
made to gain efficiency. The board
believes customers can be served
just as well from other offices.
Kimmel said, “The board is
exploring the possibility of mer
gers with other Farm Credit associ
ations,” and noted they are “open
to options.” But Keystone Farm
Credit stockholders will have the
final say, he reminded them at the
meeting.
Keystone Farm Credit con
ducted meetings at two separate
locations this week, including one
(Turn to Pag* A 26)
Philip W. Kimmel, president of the cooperative, left,
spoke Tuesday night to approximately 575 patrons and
friends at the annual stockholders’ meeting at Yoder’s
Restaurant in New Holland. Marc Hardy, motivational
speaker, talked about the importance of looking at the rea
sons behind all the personal pitfalls that can occur in life.
Lancaster Farming, Saturday, April 3, 1999-A23