Begger Farms, a Washington-based company that farms chickens, has announced a $20 million sale of its farm bureau bank.
The transaction is part of a $5 billion sale of the bureau to a bank with an extensive business in agriculture and technology.
The sale is part-way through an agreement that allows Begger to pursue a range of business and financial interests in a joint venture with the Farm Bureau.
The announcement was made Monday at the company’s annual general meeting in Dallas, where it said the new deal will be completed by the end of the year.
The bureau will retain its core assets and be incorporated into the bank, with an ownership structure similar to Begger’s.
Begger said the bank will be managed in the same manner as Begger itself, with a director appointed by the bureau.
The bank will continue to operate independently, with Begger having no involvement in the operations of the bank.
It said it will continue the operations for at least the next five years.
The company said it expects to make an initial cash payment of $40 million in 2019 and will continue making loans and other loans as needed.