Dollars and Sense - February 2012
The Cooperative Finance Association, like all cooperatives, has challenge to stay connected with you, our member. Staying connected is made more difficult because our members are spread out over 18 mid-western states.
Everyone’s schedule is already full of commitments, and attending the Annual Meeting or regional meetings doesn’t move up the priority. This is particularly true when things are going well at CFA and you are generally satisfied with what we are doing and why we are doing it. But we should do a better job of communicating with you, and this is an effort to do better.
Annual Report Summary
You received a copy of the Annual Report each year, which is a publishing of our annual audit. Let me highlight for you just a few of the results those audits have reported over the last three years:
CFA is your regional cooperative and the services that we deliver to the membership are demonstrated in Loans. Out Loans do vacillate with changes in agricultural commodity prices but in recent years we are experiencing a steady growth trend. The membership’s use of CFA is a demonstration of the value that is delivered. You will note that Loans increased substantially in fiscal 2011.
CFA’s capital reflects our very strong financial position. The representation above is expressed as a relationship our capital position compared to average assets. Nearly all of our balance sheet is compressed ass our loans with the membership. We have a very strong capital position and that provides us with the capacity to be a reliable source of financing for our members into the future.
We have enjoyed very good earning results over the three-year period shown. These earning result from an efficient delivery of lending services. Nearly 100% of our business is patronage based, so our annual earnings are returned each year as patronage. We paid over $5.9 million in patronage for fiscal 2011 and the patronage trend is particularly strong and we are very proud of that achievement.
Please let us know whenever there is anything that we can ever do to serve you better. Thank you for your support and patronage of CFA.
- Dean L. Searcy, President