Horizon Farm Credit has announced the 2022 second quarter financial results from its two legacy Associations, AgChoice Farm Credit and MidAtlantic Farm Credit. The two Associations merged on July 1, 2022, at the conclusion of the second quarter, forming Horizon Farm Credit.

“AgChoice Farm Credit and MidAtlantic Farm Credit had strong second quarter financials, resulting in the start of a consistent, reliable new cooperative this July as Horizon Farm Credit,” says Tom Truitt, Horizon Farm Credit CEO. “Both legacy Associations saw increases in net accruing loan volume and net interest for the first half of 2022, proving the strength of the agricultural industry and our cooperative despite the economic challenges we all continue to face.”

AgChoice Farm Credit’s net accruing loan volume for the first six months of 2022 was $2.7 billion, an increase of 12.8 percent compared to the same 2021 period. Net interest income for the second quarter of 2022 was $16.3 million, an 8.8 percent increase from the same time period in 2021. Net income for the quarter was $4.4 million, a 66.8 percent decrease compared to the second quarter of 2021, principally related to a donation of $3 million to the Farm Credit Foundation for Agricultural Advancement in 2022, as well as one-time merger related costs.

Nonaccrual loans decreased $1.2 million in the second quarter of 2022 to $5 million, compared to $6.2 million at December 31, 2021 and $7.6 million at June 30, 2021. The association’s nonaccrual loans as a percentage of total loans decreased to 0.18 percent at the end of the second quarter of 2022, compared to 0.24 percent at the end of 2021 and 0.31 percent at the end of the second quarter of 2021.

Members’ equity at June 30, 2022 totaled $477.5 million, up 1.1 percent from December 31, 2021, and the Total Capital Ratio was 16.03 percent. That number is compared with the 10.5 percent minimum mandated by the Farm Credit Administration (FCA), the Association’s independent regulator. The Association paid a record-breaking cash patronage distribution of $50.2 million to its member-borrowers in March 2022.

MidAtlantic Farm Credit’s net accruing loan volume for the first six months of 2022 was $3.1 billion, an increase of 7.1 percent compared to the same 2021 period. Net interest income for the second quarter of 2022 was $19.6 million, a 3.6 percent increase from the same time period in 2021. Net income for the quarter was $11.9 million, a 10.2 percent decrease compared to the second quarter of 2021, principally related to the Paycheck Protection Program (PPP) loan fees received in 2021, as well as one-time merger related costs.

Nonaccrual loans decreased $2.1 million in the second quarter of 2022 to $35.5 million, compared to $37.6 million at December 31, 2021 and $40.1 million at June 30, 2021. The association’s nonaccrual loans as a percentage of total loans decreased to 1.14 percent at the end of the second quarter of 2022, compared to 1.24 percent at the end of 2021 and 1.36 percent at the end of the second quarter of 2021.

Members’ equity at June 30, 2022 totaled $672.0 million, up 0.10 percent from December 31, 2021, and the Total Capital Ratio was 20.55 percent. That number is compared with the 10.5 percent minimum mandated by the Farm Credit Administration (FCA), the Association’s independent regulator. The Association paid a record-breaking cash patronage distribution of $83.9 million to its member-borrowers in March 2022.

For more information about the financial results and Horizon Farm Credit, visit horizonfc.com.

Tom Truitt, Horizon Farm Credit CEO

The summer months bring growth for us all, crops included. School is out and kids are practicing sports, working a new job, or attending camp. Families are spending quality time together, recharging on vacation and outdoors. And our cash grain crops, fruits, and vegetables are all finishing their growing season, gearing up for harvest in the weeks and months to come.

Your local Farm Credit associations are also in the midst of a significant growing season, as AgChoice Farm Credit and MidAtlantic Farm Credit merged on July 1 to form Horizon Farm Credit. I have the honor of serving as the Chief Executive Officer of this new association, and I will be the first to say that growing seasons can be challenging, but reaping those rewards at the end is what makes the effort so sweet!

Our member-owners and customers will find value in the growing knowledge and network of Horizon Farm Credit, while still maintaining the local contacts they know and trust. And, a growing team means more specialized areas of expertise for our agricultural relationship managers, ensuring you work with a lender that knows your farm business and its unique needs.

We know there have been other challenges outside of the normal growing season, like supply chain disruptions, rising gas prices, input costs, and labor shortages. Our mission remains the same here at Horizon Farm Credit – to support agriculture and our local farmers through the good times and the trying times, with consistent and reliable credit.

While you may be facing ‘growing pains’, or disruptions to your growing season, I challenge you to keep the following in mind as you embrace this moment:

• Consult with your network for guidance
• Take diligent notes and detailed recordkeeping
• Don’t be afraid to innovate and try new things
• Keep your eyes on the horizon, and work with your lender to ensure you’re prepared for what lies ahead

When growing season has ended and you look at your bountiful harvest, remember the resources and dedication it took to get there. As you’re reflecting, we encourage you to conduct an analysis on the year or season to determine what worked, what didn’t, and any opportunities for growth moving forward.

AgChoice Farm Credit and MidAtlantic Farm Credit jointly announced their merger, forming Horizon Farm Credit, on July 1, 2022. The merger was voted on and approved by the membership of each Association in May and received final regulatory approval from the Farm Credit Administration.

Horizon Farm Credit serves 100 counties in Delaware, Maryland, Pennsylvania, Virginia, and West Virginia, and is made up of more than 20,000 member-borrowers. The merged entity has 25 offices across its five-state footprint and is headquartered in Mechanicsburg, Pennsylvania.

Former MidAtlantic Farm Credit Chief Executive Officer, Tom Truitt, serves as Chief Executive Officer of Horizon Farm Credit, bringing more than 25 years of experience in the Farm Credit System to the new Association. “The merger of these two highly respected and successful Associations strengthens our commitment to agriculture and our rural communities,” says Truitt. “The name Horizon Farm Credit is significant as we look ahead to the future of our industry with optimism, where innovation meets tradition, to help champion the dreams of our members.” 

Shawn Wolfinger, Horizon Farm Credit’s Chairman of the Board, is excited to work with the many diverse commodities in the agriculture industry across the new Association’s footprint. “As a unified cooperative, we are prepared to serve our borrowers with a higher level of specialized service and localized decisions,” says Wolfinger. “Our team at Horizon Farm Credit is leveraging the strengths of the two original Associations, while providing expanded capital to support our membership.”

Horizon Farm Credit’s mission ‘to support rural communities and agriculture with reliable, consistent credit and financial services, today and tomorrow’ is in line with the strength of the national Farm Credit System. The association is committed to supporting the future of the agriculture industry, as the Farm Credit Foundation for Agricultural Advancement will reach the entire footprint of Horizon Farm Credit. The Foundation was founded in 2016 as part of Farm Credit’s centennial celebration to create a lasting legacy by providing agriculture education funding to MidAtlantic Farm Credit’s community. 

The offices will be closed from July 1 – 4, 2022 to ensure a seamless transition as they integrate systems to form Horizon Farm Credit. No office closures or staffing changes will occur as a result of the merger.

For more information about the merger and Horizon Farm Credit, visit horizonfc.com.

Local agricultural lender, Horizon Farm Credit, in conjunction with Colonial Farm Credit and Farm Credit of the Virginias, announced they are partnering with the State Fair of Virginia to construct a modern livestock show facility at the Meadow Event Park in Caroline County, Virginia.

“We are so excited to be able to support the youth of Virginia through this partnership” says Tom Truitt, CEO of Horizon Farm Credit. “The building will be available year-round to hold ag-related activities for the community and opportunities for our youth to compete.” 

Construction is underway on the facility with an October completion, anticipated in time for a modified youth livestock show. The 42,000 square foot facility, which will be called the Farm Credit Pavilion, is partially enclosed with a (dirt) concrete floor, climate control, and 675 square feet of office and restroom facilities.