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Southern AgCredit Returns Record Patronage Dividends to Customers

Southern AgCredit Returns Record Patronage Dividends to Customers

From left are Southern AgCredit directors Larry Killebrew, Gene Boykin, Kevin Rhodes (board chairman) and Steve Dockens; CEO Phillip Morgan; and directors T.C. Hall, Linda Staniszewski, Reggie Allen and Scott Bell (board vice chairman).

The board of directors of Southern AgCredit, a rural lending cooperative, recently declared a $21.1 million patronage on its 2020 earnings. It returned a record $10.4 million in cash dividends to its member-borrowers in mid-February. The co-op allocated the remaining $10.7 million in equities.    

The member-owned cooperative returns surplus earnings to borrowers after it has met its needs for a strong capital base. The patronage dividend returned to customers effectively reduced the interest rate paid by each borrower by one percentage point on average.

“Patronage is a unique benefit of doing business with a cooperative,” said Kevin Rhodes, Southern AgCredit’s board chairman. “When our co-op is successful, our member-borrowers benefit. Given the challenges many faced in 2020, we’re pleased to distribute a record cash patronage.”

Since 1995, Southern AgCredit has declared more than $200 million in patronage dividends to its member-borrowers.

Southern AgCredit is a full-service co-op 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.