(NAFB) – The Board of Directors from two Farm Credit associations in the upper Midwest have signed a memorandum of understanding for a proposed merger.

AgCountry Farm Credit Services, based in Fargo, North Dakota, and Farm Credit Services of North Dakota, based in Minot, North Dakota, are currently assessing the benefits of a merger for stockholders and finalizing the terms of the merger agreement. The two organizations say the merging of two Farm Credit organizations does not reduce competition as each association serves a specific territory in which they do not presently compete.

The objectives of the proposed merger include expanded service offerings, ongoing strong commitment to local communities, increased innovation, improved long-term operating efficiencies, and ultimately, increased value and customer experience for the combined customers/member-owners.

In pursuing these objectives, the associations do not anticipate any changes in branch locations or branch staffing due to the proposed merger. The earliest effective merger date would be January 1, 2022.