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National & World Ag News Headlines |
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Farm Credit Reports Strong Loan Portfolio, Very Good Credit Quality
USAgNet - 04/18/2016
At its monthly meeting last week, the Farm Credit Administration Board received a quarterly report on the economic conditions affecting agriculture and an update on the condition of the Farm Credit System as of year-end 2015.
According to the report, world economic conditions will continue to challenge U.S. agriculture. These conditions include weak global growth, divergent monetary policies, a slowing Chinese economy, and a strong dollar.
USDA projects net cash income for the farm sector to drop 2.5 percent in 2016 following a 27 percent decline in 2015.
Receipts from both crops and animal products are forecasted to be down, in part because of continued weakness in export demand. Cash grain prices remain low because of abundant global supplies.
For 2015, the System reported favorable earnings and higher capital levels. Loan portfolio credit quality remains very good although credit stress is intensifying, especially for corn and soybean producers. Overall, the System continues to be financially safe and
sound and is well-positioned for the current risk environment.
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