Texas Tech Ag Economics Senior Seminar Class February 14, 2011

2 CoBank at a Glance  A leading financial services company serving vital industries throughout the United States:  Agribusiness  Communications  Energy  Water  Member of the Farm Credit System, a Government Sponsored Enterprise with $221 billion of assets at September 30, 2010  Over $60 billion in assets at September 30, 2010; AA- rated by both S&P and Fitch  Cooperatively owned by approximately 2,100 customers  Headquartered outside Denver, CO; regional offices and banking centers throughout the country  Approximately 700 employees nationwide

3 The Farm Credit System  Federally-chartered network of borrower-owned lending institutions providing credit to agriculture and rural America  1 Agricultural Credit Bank (CoBank)  4 Farm Credit Banks  87 Associations that serve as the “front door” to rural America  Government Sponsored Enterprise representing over one-third of all U.S. agricultural lending  $221 billion in assets and $33 billion in capital at September 30, 2010  The Funding Corporation issues debt for Farm Credit System institutions, including CoBank  Regulated and examined by the Farm Credit Administration, an independent safety and soundness regulator in the executive branch of the U.S. government  Strong political support for the System’s mission in Washington, D.C.

4 Ownership, Capital & Funding Flow Systemwide Debt Investors Other FCS Banks Federal Farm Credit Banks Funding Corporation LoansEquityDebt Securities Farmers and Other Members Rural Utilities Rural Utility Customers Regional FCS Associations Farmers and Other Producers Other Eligible Borrowers Agricultural Cooperatives Holders of Preferred Stock & Subordinated Debt

5 (1) As of and for the nine months ended September 30, 2010 Loan Volume (1) Total $46.5 billion Business Overview Total $451.0 million Net Income (1) 42% 25% 33% 59% 13% 28% Agribusiness Strategic Relationships Rural Infrastructure

6 Loan Portfolio (1) (1) As of September 30, 2010 Total $46.5 billion Strategic Relationships $15.29 billion Rural Infrastructure $11.74 billion Agribusiness $19.44 billion

7  $19.44 billion lending portfolio  $13.4 billion in loans to grain handling, farm supply, food processing, dairy, livestock, fruits, nuts, vegetables, cotton, forest products, biofuels, and agricultural finance customers  $4.3 billion in export loans (87% U.S. government guaranteed)  $1.7 billion in nationwide leasing services through Farm Credit Leasing Agribusiness Total $46.5 billion ($ in millions) As of and for the YTD ended As of and for the year ended December 31, 9/30/ Loans Outstanding $19,440$17,469$18,498$19,582 Net Income $269$289$306 $249 Average Loans $17,663 $18,229 $21,843 $16,866

8 Dairy | 6% Forest Products | 4% Total $19.44 billion All Other | 10% (2) Fish, Livestock, Poultry | 5% Biofuels | 2% Fruits, Nuts, Vegetables | 8% Lease Financing | 9% International | 22% (1) As of September 30, 2010 (2) Less than 2% each Agribusiness Lending Portfolio (1) Agribusiness Farm Supply, Grain & Marketing | 34%

9 CoBank Products & Services  Lending – A full suite of customizable loan products  Term loans  Revolvers  Lines of credit  Capital Markets – Large-scale & complex transactions  Syndications & participations  Securitizations  Tax-exempt bond financing  Leasing – Specialized products for rural businesses  Vehicles  Equipment  Letters of credit  Equity sourcing  Machinery  Facilities

10  Cash management – Electronic processes save time and reduce expense  Online banking  Controlled disbursement  Account reconciliation  Full ACH functionality  Automated cash concentration  Derivatives and risk management – Reducing exposure to interest rate volatility  Forward fixed rates and options  Interest rate caps, collars, swaps and locks CoBank Products & Services (cont’d.)  International – Supporting U.S. agribusiness exports  Foreign exchange (spot & forward)  Letter of credit issuance (documentary & standby)  Export financing (CCC programs, non-guaranteed trade financing)  Documentary collections  Pre-export finance  Import finance  Correspondent banking  Country risk analysis  Wires, lockbox services  Electronic deposit  Purchase card services  Short-term investing

11 CoBank Human Resources Website:  Click the “Careers” & “Apply Now” Link

CoBank Internships  CoBank interns learn real-life business skills and tackle projects that have a meaningful impact on the bank’s operations. These are paid positions for undergraduate and graduate students who are working toward degrees in finance, accounting, agribusiness, economics, agricultural economics, IT, HR and marketing. Our internships are located in our Denver headquarters, as well as in our banking centers located in : Enfield, St. Louis, Sacramento, Louisville, Omaha, Wichita, and Minneapolis. We typically review resumes in January and February, conduct interviews in March and make hiring decisions no later than April. 12

13 Other Cooperative Opportunities Texas Ag Cooperative Council Internship: Objective:  To provide an insight into the cooperative business model to those interested in pursuing such a career.  As an effort to actively recruit candidates to fill the shoes of retiring cooperative general managers.  To create a broader awareness that a career in cooperatives is a viable alternative for college graduates.  To provide college students real life work experience.  To provide an opportunity for college credit to students. Time Frame: June 1 st – August 15 th Candidates:  Sophmore or higher grade level  Cumulative GPA of 2.5 or greater  Interest in Cotton Ginning or Grain/Farm Supply Stipend: Paid Internship Position Contact: Dr. Phil Johnson

14 Contact Information Clint Cryer- Vice President 5715 W. 50th Street Lubbock, TX Office- (806) Cell- (806) Fax- (303)