Special Annual Report Issue - AgGeorgia Farm Credit

AgGeorgia Farm Credit, ACAMessage from the Chief Executive OfficerAs I sit down to compose this message, it is hard to believe that another year has passed. It was a busyyear for AgGeorgia Farm Credit and I am pleased to report that 2006 was very successful. Asindicated in the accompanying financial statements, your Association once again experienced stronggrowth in business and very strong returns for the membership while maintaining sound capitalstrength for the future.2006 was a year of strong business activity thanks to growth in a wide variety of new customersutilizing our services and the strong loyalty that you, as existing member/patrons, have shown bycontinuing to bring your financing needs to AgGeorgia.It was a challenging year for crops with a midseason change to drought conditions and extendedperiods of high temperatures; however, with some late moderations and improved fall conditionsresults were better than expected. The livestock sector began to experience pressure from feed costwith drought-shortened hay crops and pressure on feed grain supplies with increased demands from therenewable fuels expansion.The general economy continued to improve slowly during the year and predictions are that theeconomy in Georgia will continue improving through 2007. Interest rates stabilized during the yearand cost of energy has come down from the high levels reached earlier. Hopefully these two thingswill help to moderate total business inputs. It appears 2007 has the opportunity for positive results inthe ag sector as global demand for value- added products, whether it be food products or renewablefuels, continues to increase on improved economies.Our successful business results over the years have allowed AgGeorgia, under its cooperative form, topay patronage refunds every year since 1988. The impact of AgGeorgia’s consistent ability to paypatronage and revolve excess surplus in a timely manner is best recognized in the total amount of cashthat it has returned to its patrons. Since AgGeorgia and its predecessor associations began payingpatronage, over $202 million has been paid in cash to its patrons. This represents a significant amountof money going back into the economies of the 79 counties served by AgGeorgia.AgGeorgia.33.Winter 200722006 Annual Report