RIDGELAND — The Southern AgCredit board of directors recently approved a patronage dividend for borrowers based on the financing cooperative’s 2010 earnings. Checks will be mailed to customers in mid-February.
Southern AgCredit customers will receive a check for their portion of the $3.47-million cash patronage, plus a statement detailing their portion of an $8.03-million allocation that is eligible for future cash distribution. The combined $11.5-million patronage surpasses the record patronage set by the lending organization last year.
“There are not many lenders who offer a profit-sharing plan for borrowers, but that’s exactly what we do at Southern AgCredit,” said Joe Hayman, Southern AgCredit CEO.
Every year, the Southern AgCredit board reviews the association’s financial position and determines how much of the earnings can be returned as a patronage. This year, the board approved a patronage to be paid as 30 percent cash and 70 percent allocated equities. Borrowers are not taxed on allocated equity funds until the funds are paid to them in cash.