|News Release||Farm Credit Administration|
1501 Farm Credit Drive
McLean, Virginia 22102-5090
Printer-friendly version => NR_14-04_04-10-14.pdf
For Immediate Release
NR 14-04 (04-10-14)
Contact: Mike Stokke or Christine Quinn, 703-883-4056
FCA Board Receives Quarterly Report on Condition of Farm Credit System
McLEAN, Va., April 10, 2014 — The Farm Credit Administration Board today received a quarterly report on the condition of the Farm Credit System. According to the report, the System’s financial results are strong, with total net income and capital levels up in 2013.
Portfolio loan growth was modest at 4.8 percent, and credit quality measures were strong and continued to improve. Overall, the System is fundamentally safe and sound and is well-positioned for the challenges facing agriculture.
While the farm economy remains healthy, farm sector net cash income is expected to be down in 2014. Lower grain prices have helped boost profitability in the protein and dairy sectors, but crop producers face tighter margins.
Because of lower crop prices, the market for farmland has also cooled, particularly in the Midwest. Other concerns include persistent drought conditions in California and the spread of porcine epidemic diarrhea virus in the hog sector.
During the closed session, the Board received a quarterly report from the Office of Examination.
Since the March 13 FCA Board meeting, one notational vote has occurred. Notational votes are actions taken by the FCA Board between Board meetings.
On March 24, the Board voted to authorize United FCS to invest up to $600,000 in the AgTech II equity venture capital fund as a limited partner. The Board’s approval is subject to several conditions. The investment is approved under §615.5140(e) of FCA’s regulations.
The Farm Credit Administration is the safety and soundness regulator of the cooperative Farm Credit System and the Federal Agricultural Mortgage Corporation (Farmer Mac). FCA charters, regulates, and examines the 89 banks, associations, service corporations and special-purpose entities of the Farm Credit System. The System makes loans to agricultural producers and their cooperatives nationwide. It includes Farmer Mac, which provides a secondary market for agricultural real estate loans, rural housing mortgage loans, and certain rural utility loans. Members of the FCA Board are Jill Long Thompson, Board Chair and CEO; Kenneth A. Spearman; and Leland A. Strom.
Note: FCA news releases are available on the Web at www.fca.gov.