Thursday, August 21, 1997

Farm Credit reports growth in first half of year

By J.T. Smith / Abilene Reporter-News

The Farm Credit Bank of Texas and its affiliated lending associations reported loan volume growth of $88.4 million for the first six months of the year.

Tenth Farm Credit District financial results showed total volume at mid-year was $3.97 billion, an increase of 2.3 percent from year-end 1996 loan volume. During the six-month period, the mortgage lending portfolio posted a 3.1 percent increase, driven largely by growth in the timber industry.

Production lending volume held by Production Credit Associations grew by $4.8 million during the first six months of 1997.

District net income totaled $36.4 million for the six-month period, a decrease of $11.1 million from the first six months of 1996. Net income was impacted by both a decrease in net interest income and by an increase in loan loss provisions.

"We are extremely pleased with the financial performance of the district thus far this year," said Arnold R. Henson, Farm Credit Bank of Texas chief executive officer.

Nevertheless, Henson said the bank is beginning to see some deterioration in the repayment abilities of some borrowers as they begin to experience the residual effects of last year's drought.

"We expect that trend to continue over the short term as those producers complete their 1997 growing season and bring their debt current," Henson said. "Nonetheless, district associations are in sound financial health and the district continues to be on target with its goals for the year."

Member equity in the district continues to grow and, at mid-year, totaled $898 million, up from $879 million at year-end 1996.

Total assets were $4.5 billion, compared with $4.4 billion on Dec. 31, 1996.

Family Land Heritage applications

The Texas Department of Agriculture is accepting applications through Sept. 15 for the 1997 Family Land Heritage Program.

The program recognizes farms and ranches that have been in continuous production by the same family for at least 100 years.

More than 3,000 Texas farms and ranches have qualified since the recognition program began in 1974.

While announcing the application period, Texas Agriculture Commissioner Rick Perry called these farm and ranch families "the legacy of Texas agriculture."

"The history each of these families bring to the Family Land Heritage Program is an integral part of the solid foundation that helped built Texas agriculture into what it is today," Perry said.

Program applications are available through county judges or from the Texas Department of Agriculture.

Applications also are available on the Internet from TDA's web site at <I>http://www.agr.state.tx.us<I> until the Sept. 15 deadline.

Those Texas farms and ranches that qualify will be honored during a January 1998 ceremony in Austin.

Applications also be may be obtained by writing to: Debbie Ellis, Texas Department of Agriculture, P.O. Box 12847, Austin, Texas 78711, or by calling Ellis at (512) 463-7653.