FCS releases 2008 earnings report

Louisville, KY (March 16, 2009) – Farm Credit Services of Mid-America today announced financial results for 2008. The agriculture lending cooperative topped $15.4 billion in owned and managed assets, an increase of $2.1 billion over year-end 2007 results. At $162 million, earnings were up almost 3 percent over 2007.

President and Chief Executive Officer Donnie Winters said, “In a year of turmoil in the financial markets and an economic recession unrivaled since the Great Depression, we achieved strong overall financial results and maintained a solid 13% capital position.”

Operating, equipment and facility loan volume grew by 11.5 percent, while mortgage volume increased by 15.1 percent.  Lease volume totaled $423 million - up almost $50 million from 2007.

The association experienced some deterioration in credit related statistics with an increase of loan losses last year.  However, FCS entered the more challenging environment with record high credit quality and credit related measurements continued to exceed long-term goals and standards.

Winters added that major swings in commodity prices, coupled with an anticipated lower farm income and increased input costs will come into play in 2009.  “We intend to manage through as we have for nearly a century through strong credit quality, sound underwriting standards and a commitment to supporting the needs of farmers and rural communities we serve.  Whether it’s providing risk management tools such as crop insurance, reaching the marketplace in new and different ways through dealer credit programs and leasing, or endorsing stewardship initiatives that support our local communities, we plan to be there for farmers and rural America both today and in the future,” he said.

Complete financial results can be found online at www.e-farmcredit.com or by clicking here (PDF Version) or clicking here (online version).

About Farm Credit Services of Mid-America

Farm Credit Services of Mid-America is a $15.4 billion financial services cooperative serving over 85,000 farmers, agribusinesses and rural residents in Kentucky, Ohio, Indiana and Tennessee. The association provides loans for all farm and rural living purposes including real estate, operating equipment and housing and related services such as crop and life insurance, and vehicle, equipment and building leases. For more information about Farm Credit, call 1-800-444-FARM or visit them on the web at www.e-farmcredit.com.

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