Ag Credit declares patronage dividend; $4 million sent to borrowers in Central Kentucky
Published 11:25 am Thursday, May 2, 2019
Central Kentucky Ag Credit will pay more than $4 million in a patronage distribution to member-borrowers of the Association in April.
The patronage dividend is paid to local farmers who are active member-borrowers of the agricultural cooperative.
This makes 22 consecutive years the Association has distributed patronage to its member-borrowers. The distribution is determined after all operating expenses and financial reserves are determined. The cooperative’s board of directors then authorizes the distribution.
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The $4 million distributed this year is the largest in the Association’s history. The total distribution amount for the 22 years is more than $31 million.
Jim Caldwell, Ag Credit President and CEO stated, “Central Kentucky Ag Credit operates as a true cooperative, in that we pay a patronage distribution when we are able to do so. If the Association is successful, the Board looks at the future needs of the Association and then makes a patronage distribution to members accordingly.”
“We strive to be the model of consistency that you can depend on, through the good and bad times,” explained Caldwell.
Marcus Barnett, Ag Credit Vice President and Chief Financial Officer said, “In the last 5 years we have distributed over $16 million, it speaks true to the cooperative model. We are able to return money to the pockets of our farmers, and in turn the money gets invested in the local communities that we serve.”
Jonathan Noe, Vice President and Chief Lending Officer of Ag Credit said the cooperative’s patronage distribution is made possible in part because borrowers are meeting their loan commitments to Ag Credit in an outstanding manner.
“We are a quality lender, and are pleased that our loan portfolio clearly shows we have thousands of quality borrowers.” Noe went on to explain that Ag Credit patronage distribution essentially lowers the effective interest rate of borrowers. “Our interest rates are already competitive, and when a dividend is declared, the cost of borrowing for each beneficiary of patronage is reduced,” says Noe.
Ag Credit’s service to member-borrowers has served the Central Kentucky region since 1934. The financial cooperative provides lending services through seven full-service officers in the Bluegrass.
To learn more about Central Kentucky Ag Credit’s patronage distribution go online to: AgCreditOnline.com/services/patronage-program.