Agricultural lender Colonial Farm Credit reported excellent net income for the year ending Dec. 31, 2016. Total net income was $15.1 million on loan volume of $642 million.
“Demands for working capital, equipment, real estate, and construction were strong and credit quality remained sound,” said Paul Franklin, president and CEO of Colonial Farm Credit. “Continued excellent loan quality combined with strong capital and income allowed the board of directors to approve not only our budgeted $7.7 million cash patronage refund (the equivalent to 25% of the interest earned on loan accounts during 2016), but also cash payment of a special distribution from the funding bank. Combined, these two patronage distributions total $10.6 million and are the equivalent of approximately 35% of the interest earned on loan accounts in 2016.
John Bickford, a Buckingham County farmer and forester and chairman of the Colonial Farm Credit board of directors noted, “This will be the 19th consecutive year in which we have been able to return a portion of our profits to our customer-owners. We are pleased to be in the financial position to return almost 70% of our earnings to them, especially during this period of lower farm profitability.”
For more than 100 years, Farm Credit has been financing and supporting rural America. “As evidenced by the Farm Credit System’s long history, we have been and will continue to be here in both the good times and the bad,” said Franklin. “From food, to fuel, to fiber, rural America matters, and we will always be here to support those who live and work here.”
Paul Franklin assumed the role of President and CEO upon the retirement of Greg Farmer at the end of March 2017. Greg retired with almost 40 years of service to Farm Credit and to agriculture and rural communities.