Farm Credit - About Us

Who Are We?
From The President
Board of Directors
Senior Management
Financial Reports

Farm Credit Services of Illinois is a farmer-owned cooperative dedicated to providing
competitive and flexible farm financing and crop insurance expertise. With more than $2
billion of assets, we have 165 employees that serve the financial and risk management
needs of nearly 8,000 farmers, agribusinesses, and rural landowners throughout the
southern 60 counties in Illinois. Farm Credit Services of Illinois helps improve the quality of
life of farmers and of rural America through its commitment to expert financial services and
advice and partnership-based relationships with agricultural customers.

From The President
2009 Review & 2010 Preview

Dave Owens, President

A wet spring and late harvest are beginning to sound like a broken record. However, those challenges for 2009 were much more severe than past years. Late planting and cooler than normal temperatures during the growing season resulted in crops with unusually high moisture content which extended harvest as drying capacity at most elevators was insufficient.

Extending harvest has resulted in fewer acres of wheat being planted and much of the fall tillage has been pushed back to this coming spring. Weather is always an unknown, but last year brought many new challenges as well. The domestic and global economic slowdown reduced demand for exports and the continued volatility in input costs and commodity prices leaves profit margins uncertain.

The agricultural sector has fared well compared to the rest of the economy. However, we are not entirely insulated from the long-term effects of a global economic slowdown. Many Farm Credit institutions reported lower credit quality in 2009 due to stress in several industries including ethanol, poultry, timber, lands in transition, dairy, pork, and beef. Much of the stress was caused by higher input costs resulting from higher grain prices. With more than 64% of our portfolio devoted to cash crops, we have been the beneficiary of higher commodity prices. In addition, our portfolio concentration in ethanol and livestock remains very low. Credit quality for the association did decline during the year falling from a record high of 99.7% acceptable at June 30, 2008 to 96.8% acceptable at December 31, 2009. Much of this decline was attributed to stress in the ethanol and livestock industry. With our overall credit quality of 96.8% and our permanent capital position of 14.2%, Farm Credit Services of Illinois remains safe, sound, and financially strong. We have truly been blessed during these times.

Portfolio growth for 2009 was much lower than previous years as demand for operating credit, capital markets, and commercial lending was weak. Reduced demand for operating credit is usually a good sign of strength in producers’ balance sheets and working capital positions. Capital markets and commercial lending was impacted by the overall economic conditions. While portfolio growth was below the previous year, we still ended with a respectable 4.45% increase overall. Net earnings for the year were very respectable at $36.8 million. The decline in credit quality and recognition of stress in several segments of our portfolio resulted in a $5.8 million net addition to our allowance for loan losses.

Revenue from crop insurance sales was also down for the year as producers enjoyed lower premiums and the association recorded lower commissions. Net earnings were positively impacted by additional revenue from our affiliated Farm Credit Bank, AgriBank.

In the midst of uncertainty, domestic and global economic slowdown, and stress in many agricultural industries, Farm Credit Services of Illinois is standing strong! Our portfolio quality, capital position and operating efficiency puts us in a very enviable position. Our strength comes from our stockholders, professional staff, board of directors, and management. No one knows what the future will bring, but the strengths in this association are many and we are well positioned to manage our way through difficult times.

On behalf of your board of directors and staff, we thank you for your continued support. We have much to be thankful for! Let's all pray for a reasonable spring planting season.


2009 Farm Credit Services of Illinois Board of Directors

	Jack Hastings, Chairman	Jack raises corn, soybeans, wheat and hay near Louisville in Clay County. He also has 35 beef cows and feeds out 200 fat cattle annually. He has served on the board since 1985.

	Dale Crawford, Vice-Chairman	Dale Crawford raises corn and soybeans on the family farm near Sullivan in Moultrie County. He has served on the board since 2006.

	Lance C. Beery	Lance raises corn, soybeans and wheat near Findlay in Shelby County. He also has a commercial cattle herd. He has served on the board since 1983.

	Kent Brinkmann	Kent Brinkmann raises corn, soybeans and wheat near Carlyle in Clinton County. He is also a seed dealer. He has served on the board since 1998.

	Mike Carls	Mike Carls raises corn and soybeans near Virginia in Cass County. He has served on the board since 2006.

	Wm. David Champion, Jr.	David Champion is the President and Chief Executive Officer of Eastern Illini Cooperative. He is one of two appointed directors on the Association board. He has served on the board since 1994.

	Jack Crumrin	Jack Crumrin operates a grain and livestock farm near Martinsville in Crawford County. He also operates a hunting preserve. He has served on the board since 1974.

	J. Dale Edwards	Dale Edwards operates a grain and livestock farm near Buffalo in Sangamon County, which includes a purebred Berkshire swine herd. he has served on the board since 1991.

	Dennis Frey	Dennis raises corn and soybeans on a farm near Dahlgren in Hamilton County. He also raises native prairie grass seed. He has served on the board since 1991.

	Dr. Kim Harris	Dr. Kim Harris is an Associate Professor of Agribusiness Economics at Southern Illinois University Carbondale (SIUC). He is one of two appointed directors on the Association board. He has served on the board since 1998.

	Larry Hasheider	Larry raises corn, soybeans, wheat and alfalfa on a farm near Okawville. He also has pork, dairy, feedlot beef and beef cow operations. He has served on the board since 2006.

	Mark Miller	Mark Miller raises corn and soybeans near Chestnut in Macon County. He has served on the board since 1997.

	Karen Neff	Karen Neff farms 1,000 acres, growing corn, soybeans, wheat, and milo. She also raises seed beans, seed wheat and seed corn for three national seed companies companies, in addition to finishing hogs. Neff currently works as a Project Manager for UNISYS, a computer software and hardware company.

	John Schable	John Schable raises corn and soybeans on a farm near Tuscola in Douglas County. He has served on the board since 1994.

	Donald Sievers	Don raises corn, soybeans and wheat on a farm near Staunton in northern Madison County. He also operates Countryside Gardens, a retail garden center and is a seed dealer. He has served on the board since 1991.


Senior Management Team

	David M. Owens, Chief Executive Officer
	Dave is a native of Mt. Vernon, Illinois. He obtained his Bachelors Degree in Business Administration from Southern Illinois University and is a Certified Public Accountant. He has been with the Farm Credit System since 1976, including 2 years with Farm Credit Administration, 12 years with the Farm Credit Bank of St. Louis, and 5 years with Farm Credit Services of Southeastern Illinois before joining Farm Credit Services of Illinois. Dave and his wife Cathy have two daughters and reside in Champaign, Illinois.

	Donald J. Olson, Executive Vice President & Chief Credit Officer
	Don has over 30 years of agricultural lending experience with the Farm Credit System, and has held a variety of positions, starting as a Loan Officer. He is a University of Illinois graduate, and a central Illinois native, having been raised on a grain and livestock farm near Hoopeston. He and his wife Laurel reside in Champaign, Illinois.

	Aaron S. Johnson Senior Vice President, Field Operations
	Aaron is a native of New Holland, Illinois. He obtained his Bachelors Degree in Organizational Business Management from Illinois State University. He joined the Farm Credit System in 1984. Aaron and his wife Debbie have three children, and live on a farm near Latham, Illinois.

	Loren J. Leskis Senior Vice President, Field Operations
	Loren has over 30 years experience in lending having worked with a national lending company, local community bank and Farm Credit. He is a native of the northern Chicago area, graduated from Southern Illinois University and moved to Champaign-Urbana in 1969. Loren and his wife LuAnn reside in Champaign, Illinois.

	Steven D. Ray, Senior Vice President & Chief Financial Officer
	Steve has almost 30 years experience in finance and accounting, having worked more than a third of that time within the Farm Credit System. He received his bachelor's degree in business, majoring in accountancy, from Eastern Illinois University and is a CPA. Steve and his wife, Tammy reside in Champaign, Illinois.