AgSouth Farm Credit CEO Pat Calhoun announced that the customer-owned cooperative is distributing $40 million in profits from 2020 to its member-borrowers, the highest regular patronage return in over 30 years of the Association’s patronage distribution.
The distribution will include nearly $2.3 million to Statesboro members.
Members of the cooperative play a crucial part in helping agricultural and rural communities receive reliable credit by doing business with AgSouth. This is done through the patronage program, and the distribution is voted on by the Board of Directors. Although it is not guaranteed, AgSouth has consecutively distributed patronage for the last 33 years returning over $580,000,000 in profits since 1988.
“AgSouth is once again proud to continue our decades-long commitment to cooperative principals by making this strong distribution to our members,” Calhoun said. “This year’s $40 million dollar patronage exceeds our 2019 regular patronage distribution by $1.1 million dollars. These funds directly support our customers and the communities we serve.”
Regional Vice President, Zack Murphy added, “Statesboro’s members will receive a combined amount of nearly $2,300,000 in cash from these distributions.”
“Stockholders will receive checks totaling $12 million (which is about 30 percent of the total distribution), with the remaining 70 percent, or $28 million, going into an allocated surplus account to be released at a later date at the discretion of the Board,” said AgSouth CFO Bo Fennell.
In February, AgSouth distributed allocated surplus from 2015 in the amount of $18.5 million to its members, for a total cash distribution this year of $30.5 million.
“AgSouth’s strength and commitment to our business model once again allowed the distribution in cash from our allocated surplus accounts on a five year basis. This $30.5 million in total cash distribution will have a significant economic impact in our territory,” Calhoun said.