| Business Briefs - May 27, 2009 |
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FCS reports steady 1Q earnings
LOUISVILLE, Ky. — Farm Credit Services of Mid-America (FCS) announced earnings of $40.2 million for the first quarter of 2009. Additionally, loan volume, including owned and managed loans, totaled $13.5 billion at quarter-end, a $48 million increase from Dec. 31, 2008.
President and CEO Donnie Winters said despite the continued global economic and financial crisis, the association is off to a solid start this year with activity picking up late in the quarter and continuing through the spring.
Nonaccrual loans were 1.5 percent of the portfolio, up from 1.36 percent from the end of last year, but still better than standards. Winters said the overall diversification of FCS’s lending portfolio has contributed to the association’s ability to deliver net earnings growth at profitable levels.
To see complete results, go to www.e-farmcredit.com and select “News,” then “Quarterly Report.”
JD 2Q profit tumbles 38 percent
MOLINE, Ill. (AP) — Deere said its fiscal second-quarter profit fell 38 percent as the global recession reduced demand for its farm equipment. It slashed its 2009 profit outlook by 27 percent.
The world’s largest maker of farm machinery says it earned $472.3 million, or $1.11 per share. That’s down from $763.5 million, or $1.74 per share, during the same period last year.
Moline-based Deere & Co. stated revenue fell 17 percent to $6.75 billion. Analysts surveyed by Thomson Reuters expected profit of $1.07 per share on revenue of $6.60 billion.
Farmers are increasingly cautious about spending on new equipment because of lower crop prices and the credit crunch, which has made it more difficult to get loans.
TAEP applications available
NASHVILLE, Tenn. — The Tennessee Department of Agriculture has released the 2009 application for the Tennessee Agricultural Enhancement Program (TAEP). The program will begin accepting new applications June 1 and continue through July 1.
Applications should not be postmarked prior to June 1. Applications are accepted on a first come, first serve basis, so producers are encouraged to apply early.
This year’s program offers the same menu of cost share opportunities as last year. This includes livestock equipment, cattle genetics, hay, feed and grain storage and producer diversification opportunities.
New for agritourism operators for 2009 is the Tourist-Oriented Directional Signs (TODS) program. Through TAEP, agritourism operators can receive cost share funds to purchase TODS featuring TDA’s well-known red barn icon. These signs can be used, along Tennessee highways to direct motorists to agritourism venues.
Through TAEP, farmers can qualify for a 35 or 50 percent cost share ranging from a maximum of $1,200-$15,000 on a variety of projects. Applications are available at most farm agencies and farm supply stores including USDA Farm Service Agency, extension, Farm Bureau and Tennessee Farmers Co-op locations.
Producers may get important messages and updates on the program by calling toll free 800-342-8206. For more information or to download an application, visit www.TN.gov/agriculture/enhancement
USDA OKs $15M in loans, grants
WASHINGTON, D.C. — Agriculture Secretary Tom Vilsack announced 28 organizations in 11 states will receive $15 million in loans and grants to create or retain jobs and spur economic development in rural communities.
Recipients will re-lend loan funds to local businesses; the grants will be used to establish rural revolving loan funds which will be used to make loans to new and expanding rural businesses to create or retain jobs in rural areas.
For example, the USDA plans to lend Caney Fork Electric Cooperative $740,000 to assist Norcom of Tennessee, Inc., as it builds a 23,000 square-foot manufacturing facility in Sparta, Tenn., nearly doubling the size of the existing plant. The project is expected to retain 70 and create 100 new jobs with full benefits.
It also is expected to provide an immediate economic boost to an area with an unemployment rate among the highest in the state and almost twice the national average. Norcom manufactures composite plastics for the health care and automotive industries.
The following is a complete list of groups selected to receive Rural Economic Development awards. Funding of individual recipients is contingent upon their meeting the terms of the loan or grant agreement.
Loans: Adams Electric Cooperative, Ill., $740,000; Franklin County Rural Electric Cooperative, Iowa, $740,000; Caney Fork Electric Cooperative, Inc. (Warren County Industrial Development Board), Tenn., $740,000; and Southern Indiana REC, Ind., $740,000.
Grants: North West Rural Electric Cooperative, Iowa, $300,000; Appalachian Electric Cooperative, Tenn., $300,000; Consumers Energy (GMG Community Schools), Iowa, $300,000; Corn Belt Power Cooperative, Iowa, $300,000; Consumers Energy (Gladbrook-Reinbeck Community School District), Iowa, $300,000; Iowa Lakes Electric Cooperative, $290,000; and Caney Fork Electric Cooperative, Inc. (Warren County Electric Cooperative, Inc.), Tenn., $300,000. |
| 5/27/2009 |
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