Farm Lenders Report Improved Earnings

Strong markets for most farm products boosted Spokane-based Northwest Farm Credit Services’ third-quarter profits to $11.4 million, up from $10.1 million last year.

The results also contributed to a rise in earnings at AgAmerica Farm Credit Bank in Spokane, which posted a $34.1 million profit for the quarter ended Sept. 30, up from $25.7 million a year ago.

Northwest Farm Credit is an association of 20,000 members, who borrow funds from AgAmerica to operate farms and logging crews, and to buy land and rural homes.

AgAmerica’s earnings also reflect results from two similar associations in Omaha. Together, Northwest Farm Credit and the Omaha associations serve members in nine states.

AgAmerica President James Kirk said strong feed grain and wheat markets have buoyed the farm economy, but also led to declining cattle prices. However, he doubts the poor cattle market will hurt AgAmerica’s overall performance.

AgAmerica reported $69.2 million in interest income for the third quarter on total loans of $6.25 billion. AgAmerica has assets of $7.17 billion.

Northwest Farm Credit reported interest income of $9.7 million for the quarter on total loans of $1.24 million. It received $11.5 million in patronage distribution from AgAmerica and $3.8 million in loan servicing fees from customers. It has $1.47 billion in assets.

, DataTimes