SANTA ROSA -- American AgCredit, the nation’s 7th largest Farm Credit Association announced today financial results for 2010. Full‐year earnings and net interest income reached record highs, and loan quality remained stable throughout the year.
The associationʹs overall levels of capital and liquidity remained strong.
ʺWeʹre extremely pleased with our financial results and business performance for 2010,ʺ said President and Chief Executive Officer Ron Carli. ʺIn an economic environment that remains challenging and highly volatile, American AgCredit continues to serve as a dependable source of credit for farmers, ranchers and other agribusiness in our territories.”
American AgCreditʹs net income was a record $81.3 million, up $31 million from 2009. Average loan volume was $4.57 billion. Net interest income rose 25 percent to $134.7 million, from $107.4 million in 2009, offset by non‐interest expenses and loan loss provisions of more than $53 million.
A key driver was the volatile nature of commodity input costs. While the dairy industry has stabilized somewhat since 2009, the market suffered from high feed costs and low prices during much of the year. The anemic housing market hurt the forest products industry as well. Demand for lumber and nursery products was far below normal levels. At the same time, other commodities financed by the association have weathered the economic downturn with limited adverse effects.