Louisville, KY (PRWEB) August 16, 2012
Agricultural lender Farm Credit Mid-America announced financial results for the first six months of the year with earnings at $155.9 million compared to $101.5 million for the same period in 2011. The increase in earnings is primarily due continued growth in business as a result of the strong agriculture economy as well as an unexpected insurance fund premium refund. Loan volume surpassed $15.6 billion, reflecting a 10 percent increase compared to June 30, 2011. Credit quality improved with adversely classified loans representing less than 3.6 percent of the portfolio compared to 3.9 percent in December of 2011.
“Agricultural conditions were positive during the first six months of the year. However, the drought and extreme heat has taken its toll on corn and other crops and will eventually impact livestock producers. While the drought will have a bearing on portfolio credit risk, it is impossible to measure the extent at this time,” said Bill Johnson, president and chief executive officer, Farm Credit.
Johnson stressed that Farm Credit will continue to adapt to the demands of agriculture, the drought this year in particular. “Fortunately, many farmers, especially those producing grain, have built liquidity and solvency over the last few years which will help them endure current conditions. Each farmer’s situation is different. That’s why we focus on working with customers to individually discuss specific options to manage through the crisis.”
To see the complete results, go to http://www.e-farmcredit.com, select “News”, then “Quarterly Report”.
About Farm Credit Mid-America
Farm Credit Services of Mid-America is an $18.3 billion financial services cooperative serving more than 92,500 farmers, agribusinesses and rural residents in Indiana, Ohio, Kentucky and Tennessee. The association provides loans for all farm and rural living purposes including real estate, operating loans,equipment loans, and housing loans. FCS also provides an array of financial services, including crop insurance and leases. For more information about Farm Credit, call 1-800-444-FARM or visit them on the web at http://www.e-farmcredit.com.