Farm Credit Services of Mid-America, an agriculture lending cooperative serving more than 95,000 customers throughout Indiana, Ohio, Kentucky and Tennessee reported strong financial results for 2011. The ag lender stated earnings of $278.6 million, a 30.2% increase over 2010 and owned and managed assets of $18.4 billion, a 5 percent increase over 2010.
President and Chief Executive Officer, Bill Johnson, said strong farm earnings continue to bolster the farm economy and that has had a positive impact on the earnings of the association.
“The farm sector continues to be a bright spot in an otherwise unpredictable economy,” Johnson said. “That, coupled with the low interest rate environment, allowed us to offer competitive interest rates to customers on loans so they are able to grow their operations.”
As an example, more than 24,000 Farm Credit loans representing $4 billion in volume were converted to lower rates in 2011 which will save customers an estimated $94 million over the next three years. “As a cooperative it’s always been Farm Credit’s ultimate goal to get the best rate value for our customers. For more than a decade the Farm Credit Loan Conversion Program has offered customers a simple way to redo higher-rate loans to take advantage of a more competitive interest rate environment,” said Johnson.
Another way the association provided value to rural communities in 2011 was through the availability of long-term fixed rate financing for farms.
“Almost 50% of our customers have fixed rate loans of 10 years or longer. In today’s volatile farm environment, one way to ensure that the cost of farmer’s financing remains consistent is through fixed rates,” he said.
Farm Credit Services of Mid-America is also growing its human capital base to meet marketplace demands, improve customer service and prepare for planned retirements in the next three to five years. Hiring and training an exceptional team was a crucial focus in 2011 and will remain a priority in 2012.