American AgCredit, a farmer-owned financial cooperative, today announced net income of $98.9 million for the 2014 calendar year along with a cash dividend distribution of $39 million to its shareholders. This compares to net income of $111 million and a cash dividend of $37 million in 2013. American AgCredit has returned over $215 million to its customer-owners since 2005.
“American AgCredit experienced another successful year, and we’re proud to once again pay a strong cash dividend to our customer-owners,” said Byron Enix, President and CEO. “With an increase of 5.2% in loan volume, we continue to see solid growth in agriculture. American AgCredit is well positioned to support this growth through our strong capital position and consistent earnings. We are continuously improving our operations to better serve our customers as we strive to be the very best lender to agriculture.”
Loan volume ended the year at $6.36 billion compared to $6.05 billion from a year ago, an increase of $314 million. American AgCredit’s capital position continues to be very strong and increased by $92 million during the year to $1.71 billion at December 31, 2014. Profitability for 2014 was solid as $98.9 million of net income was recorded for the year compared to $111.2 million for 2013.
“Agriculture has experienced a sustained period of favorable economic conditions during the past few years contributing to the on-going success of the industry. However, the continuing drought conditions in the West are creating some challenges. American AgCredit is honored to serve our customer-owners and will be there to help agriculture meet those challenges,” said Chief Financial Officer Vern Zander.
“As a cooperative, we share our profits with our customer-owners through our patronage program,” added Zander. “This year we’re pleased to return $39 million of cash patronage dividends representing 39% of our 2014 net income. This effectively reduces our customers’ interest rates by 0.75%.”
About American AgCredit Founded in 1916, American AgCredit is part of the nationwide Farm Credit System, and is the nation’s 7th largest Farm Credit cooperative. American AgCredit specializes in providing financial services to agricultural and rural customers throughout California, Nevada, Central Kansas, Northern Oklahoma, Central and Western Colorado, and Northern New Mexico – as well as to capital markets customers throughout the country. Financial services provided by American AgCredit include production and mortgage financing, equipment and vehicle leasing, crop and life insurance, lines of credit, and the Young, Beginning and Small Farmer Program. In addition, the Association provides interest-free loans for qualifying 4-H and FFA AgYouth programs, as well as college scholarships to young people interested in agriculture.