Louisville, Kentucky (November 6, 2009) - Despite the challenges in the nation's financial markets and the tightening agricultural economic conditions, Farm Credit Services of Mid-America today announced 3rd Quarter financials indicating the cooperative generated after-tax earnings of $99.1 million through the end of September. FCS is a financial lending cooperative serving over 85,500 customer-members throughout Kentucky, Ohio, Indiana and Tennessee.

 

The cooperative’s owned and managed loans, leases and investment volume totaled $15.2 billion as of September 30, 2009, a $695 million increase from December 31, 2008. Year-over-year owned and managed volume is up over 6%.

 

President and Chief Executive Officer Donnie Winters said earnings were down 24% from 2008, partly due to higher insurance costs and operating expenses, as well as an increased provision for loan losses. “We still are still projecting to finish the year with earnings of approximately $130 million which evidences our ability to withstand credit challenges, generate strong earnings and build capital and risk bearing ability,” Winters said.

 

Non-accrual volume was $227.2 million, slightly worse than the association’s plan but only 1.76% of owned loan and lease volume. Although delinquent loans did trend up over the last 12 months, the increase has been slight, particularly compared to many other lenders.

 

“Clearly, we see that pork and dairy producers continue to face the greatest difficulties and that crop farmers have a crop that was significantly more expensive to produce with prices below last year's record levels for most commodities,” said Winters. “While this year will be more challenging for agriculture, we want farmers to know that we are in a good position to continue to meet the credit needs of credit-worthy farmers by providing access to a wide array of loan products, including long-term fixed rate financing for farmland.”

 

To see the complete results, go to www.e-farmcredit.com, select News, then Quarterly Report.

 

Farm Credit Services of Mid-America is a $15.2 billion financial services cooperative serving over 85,500 farmers, agribusinesses and rural residents in Kentucky, Ohio, Indiana and Tennessee. The association provides loans for farm and rural living purposes including real estate, operating, equipment and housing and related services such as crop insurance and life insurance and vehicle, equipment and building leases. For more information about Farm Credit, call 1-800-444-FARM or go online at www.e-farmcredit.com.

 

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