RIDGELAND — The Southern AgCredit board of directors recently approved a patronage dividend for borrowers based on the financing cooperative’s solid 2011 earnings. Checks are being mailed to customers in mid-February.
Southern AgCredit customers will receive a check for their portion of the $6.35 million cash patronage, plus a statement detailing their share of the allocation that is eligible for future cash distribution.
The combined $12.7 million patronage surpasses the record patronage set by the lending organization last year, and represents 100 percent of the co-op’s 2011 earnings.
“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. “Because we are a cooperative, our borrowers collectively own our business. We are committed to sharing our earnings with them, thereby reducing the effective interest rate on their loans.”
Every year, the Southern AgCredit’s 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 50 percent cash and 50 percent allocated equities. Borrowers are not taxed on allocated equity funds until the funds are paid to them in cash.
Southern AgCredit is a full-service cooperative lender specializing in financing rural land and agricultural operations in Mississippi and Louisiana. It has $740 million in total assets and is a member of the nationwide Farm Credit System.