The board of directors of Southern AgCredit, a rural financing cooperative, recently declared a record $19.7 million patronage. In mid-February, $9.9 million of the patronage was returned as a cash payment to its member-borrowers. The remaining $9.8 million of the co-op’s earnings from 2018 is in the form of equities allocated to each customer-owner.
As a borrower-owned cooperative, Southern AgCredit provides its members with agricultural and rural financing at competitive rates. Southern AgCredit also returns surplus earnings to them after it has met its needs for a strong capital base. This record cash patronage — the largest in the co-op’s history — reduces the effective interest rate paid by each borrower in 2018.
“We are pleased that our cooperative has the financial strength to provide this patronage refund to the customers, who collectively own the business. This year’s distribution will increase the total amount of patronage we have declared on behalf of our member-borrowers since 1995 to more than $165 million.”Kevin Rhodes, Board Chairman, Southern AgCredit
Southern AgCredit is a full-service cooperative lender that specializes in financing rural land and agricultural operations in Mississippi and Louisiana. It is a member of the nationwide Farm Credit System, the nation’s largest source of loans for agriculture, agribusiness, rural real estate and country homes.
Financial results discussed here are preliminary and unaudited. Please visit our Financial Reports this spring to see our complete results.