What is in this article?:
- Farm land prices: A correction maybe, not a bursting bubble
- Government monetary policy unsustainable
- Bank set records in 2012
- “Some people feel farm land prices are too high right now; others say prices will keep steadily going up, but at a slower rate than the past few years," Abbott Myers, chairman of Mississippi Land Bank, said at the organization's annual meeting. While some analysts are warning of a sharp retreat in land prices, he says, “I don’t foresee another farm land bubble like the one that occurred in the 1980s, when there was a total collapse in values.”
Bank set records in 2012
In his report on operations for the Mississippi Land Bank, President Gary Gaines said the organization has several record-setting accomplishments in 2012.
“We had a record year for new loans, closing 612 new loans valued at $127 million, which brought outstanding volume to just over $500 million and a growth rate of 8.8 percent. We’re extremely proud of this. This has been our goal for a long time, and we’re very proud to have returned this amount to our stockholders. We’re confident this will continue to grow.”
Member equity grew also, Gaines says. “At the end of the year, we had $85.2 million equity outstanding for our member owners. We had a 15.25 percent permanent capitalization ratio — a very strong financial condition that should enable us to weather any storms that may come along.
“Credit quality continues to be outstanding, particularly in these difficult times, at 98 percent. Two of our branches, Starkville and Senatobia, had over $100 million in loan value outstanding, and Clarksdale was almost at $100 million. All of our branches are growing.
The organization has continued its scholarship program for college students, Gaines says. “Our board is very supportive of higher education, providing scholarships to students in community colleges and universities in our 32-county area. All these students are outstanding, and we’re pleased to be a part of helping them toward a future of accomplishment and service.”