More losses in the farm lending system

Combined net income for the Farm Credit System increased 1.8 percent to $1.27 billion for the first quarter of 2018, as compared with $1.24 billion for the same period last year. President and CEO of the Federal Farm Credit Banks Funding Corporation Tracey McCabe says the system remains “well-positioned” to support farmers as they face challenges this year. Net interest income was $2 billion for the first quarter of 2018, as compared with $1.9 billion for the first quarter of 2017. The increase in net interest income primarily resulted from a higher level of average earning assets, driven largely by increased loan volume and, to a lesser extent, growth in the liquidity investment portfolio. Meanwhile, the Farm Credit System reported loan losses of $69 million for the first quarter of 2018, as compared with $37 million during the first quarter of 2017.