Total assets for the cooperative on March 31, 2019 were $23.7 billion, $348 million above year-end 2018 figures. Total loans reduced by $47 million to $22.3 billion with the reduction attributed to expected seasonal repayments on production and intermediate-term loans, partially offset by an increase in agribusiness loans.
For 2019, the United States Department of Agriculture (USDA) is forecasting net farm income to increase $6.3 billion (10.0%) from 2018 levels to $69.4 billion. This follows a $12.0 billion (16.0%) decline forecast to 2018.
First quarter Farm Credit Mid-America results:
- Net income total $94. 6 million on March 31, 2019 vs. $108.7 million on March 31, 2018.
- Net interest income increased to $126.6 million from $119.5 million from Q1 2018.
- Members’ equity increased $61.4 million over Dec. 31, 2018 – primarily due to net income for the period, partially offset by patronage distribution accruals.
- Credit quality remained stable from end of year, with adversely classified loans representing 3.5 percent of portfolio.
During the first quarter, Farm Credit Mid-America distributed more than $146 million to eligible customers as part of its Patronage Program. In 2018, the Association returned $88 million to Patronage-eligible customers.
“Our ability to share profits with our farmers through Patronage, this being our third consecutive year, demonstrates our strength,” said Bill Johnson, Farm Credit Mid-America president and chief executive officer.
“While USDA is forecasting 2019 to be slightly better for farmers, we’ve been in a down agriculture economy for a number of years,” said Johnson. “Farmers continue to be stressed and there’s uncertainty due to weather, trade and other market forces.
“Our relationships and partnerships with customers are forged with a commitment to provide reliable, consistent credit and counsel in good and not so good times,” he said.
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