Cape Fear Farm Credit Board Approves Proposed Merger

After completing months of due diligence, the Boards of Directors of Cape Fear Farm Credit and AgCarolina Farm Credit voted to approve the proposed merger of the two Associations.

Over the next few months, the Boards will work together to seek regulatory approval and finalize a merger disclosure packet that will be sent to all stockholders this fall. This packet will include a range of important details, including instructions on when and how eligible stockholders can vote on the merger.

Assembling this information will take time; see the timeline below to better understand where we are in the merger process.

As we work to ensure a smooth, transparent process, we encourage you to check back to this landing page for updates on the merger, important documentation, and copies of official member communications.

We will use this landing page to provide merger related updates on key milestones. We aim to keep you informed at every step of the way.

We appreciate your continued business, your interest in your cooperative’s success, and the opportunity to serve your needs.

Do stockholders vote on the merger?

Yes. Assuming both Boards vote to recommend the merger and receive regulatory approval, a stockholder vote would occur in late 2022.

Will any Farm Credit offices close as part of the merger?

We do not anticipate branch office closures as part of this merger. Local service will continue to be a key focus, including local loan decisions and local delivery of services. 

Will members have a new loan officer following the merger?

No. Members can expect the same local, personalized service from the same trusted experts at their local branches.

What will happen to patronage dividends?

Patronage dividends would continue to be an important part of members’ ownership under a combined Association. As a cooperative, we would continue to return profits to our members as determined by the board of directors each year.

Will there be any change in loan approval time or the loan process generally speaking?

No. We anticipate that the loan approval time and process would remain relatively consistent throughout the merger transition. Part of the reason for this strategic merger is for the Associations to share technology costs and resources to provide better value and service to members in the long term. Our goal is to streamline processes to make it easier to do business with faster loan decisions and other tools to enhance the success of members and our employees.

May 2022 Merger Update

The Cape Fear Farm Credit Board of Directors continues to explore ways to better serve Cape Fear members and communities.  The Cape Fear Farm Credit and AgCarolina Farm Credit boards of directors voted unanimously to sign a Letter of Intent (LOI) to pursue a merger of equals with the goal of creating a stronger, more diversified organization that is better positioned to serve our members and fulfill our mission going forward.  For years, the two Associations have worked together as industry peers, building successful, financially strong organizations who share a common member-focused culture and similar operating models.  Local, personalized service will continue to be a top priority through the proposed merger process and beyond.   

Both Associations continue the robust due diligence process in the proposed merger of Cape Fear Farm Credit and AgCarolina Farm Credit. As part of this process, five key objectives are being reviewed to help determine the impact a combined Association would have on resiliency, cost synergy, operational capacity, growth and profitability, and patronage.

Findings from the due diligence period will be shared with both Boards in late June to guide each of their decisions on whether to approve the transaction. Assuming both Boards decide to move forward and the Farm Credit Administration grants approval of the Merger,  each Association will call a meeting of stockholders to vote on the merger, likely in late fall of 2022.  Prior to the vote, all eligible stockholders will receive a merger disclosure packet outlining the reasons for each Board’s decision to pursue a merger, as well as financial and other information describing the merger and its likely impacts on stockholders. 

Do you have a question about the merger?

If you have any questions related to the merger, please send us an email to