Loan activity among Midwestern farmers reinforced the strong financial foundation of the agricultural industry, despite lower commodity prices in the grain sector and a leveling off in the livestock industry. Farm Credit Mid-America, a financial services cooperative serving farmers and rural residents in Indiana, Ohio, Kentucky and Tennessee, reported growth in its loan volume and total assets. Farm Credit grew loan volume by more than $1.2 billion to $20 billion and saw total assets grow by nearly $1.3 billion to $22.1 billion, a 6.1 percent increase over 2014. Net income for 2015 was $279 million. The increase in total loans was due to strong activity for real estate mortgage, production and intermediate term loans. “In 2015, we were reminded that we operate in a cyclical industry,” said Bill Johnson, president and CEO, Farm Credit Mid-America. “However, like our customers, we are well prepared to navigate these downturns, and are encouraged by the strength of our portfolio.”
The association’s portfolio credit quality remained stable from December 31, 2014, while adversely classified loans increased to 2.4 percent of the portfolio at December 31, 2015, from 2.2 percent of the portfolio at December 31, 2014, which was lower than forecasted. “While the current economic cycle is challenging our industry, the long-term nature of our approach provides the flexibility to navigate a harsher financial climate,” said Johnson. “Going forward, we’ll continue to focus on the long-term credit needs of our customers, while serving the communities where we live and work, and agriculture as a whole.”
Despite challenging times for the agricultural industry, Farm Credit continued to support its mission to secure the future of rural America and its legacy of serving local communities. In 2015, the association invested in programs connecting young people with agriculture, supporting growth at the university level, and fighting hunger.
For complete results, view Farm Credit Mid-America’s 2015 Annual Report at: www.e-farmcredit.com.