Northwest FCS reports 2009 earnings; food inflation
Washington Ag Today February 22, 2010 Northwest Farm Credit Services announced earnings of $106.1 million and growth of owned loan volume of 3.0 percent for 2009. Total capital in the association increased 7.6 percent during 2009. President and Chief Executive Officer Jay Penick said, “In spite of the difficult economy and a few commodities experiencing severe downturns, Northwest FCS experienced another year of solid earnings. Our level of capital remains strong. In 2009, $79 million was set aside for potential loan losses; making the total credit loss reserves $103 million. We returned $26.0 million to our customers through our patronage program.” Penick also said, “The overall economy is beginning to strengthen, but we expect a longer recovery than in past recessions.” The USDA says grocery store food prices last year climbed only one-half of one percent, which USDA economist Ephraim Freitag says was the lowest in a long time. What about 2010? Freitag: “The big question is how quickly the different economies around the world recover and what that means for trade and exports for food, demand for food. So for retail food prices right now we are predicting inflation returning closer to the historical norm in 2010. Somewhere in the neighborhood of about three percent.” Again that is if the economy keeps recovering but if it stalls Freitag says 2010 could be like 2009. I’m Bob Hoff and that’s Washington Ag Today on the Northwest Ag Information Network.
