AgSouth Farm Credit Reports Record Net Earnings of $55.3 Million and Will Distribute $32.4 Million in Profits to Members
STATESBORO, Ga. (February 23, 2018) – AgSouth Farm Credit CEO Pat Calhoun announced that the customer-owned cooperative had record net earnings of more than $55 million during 2017. He says that, "The association remained strong in 2017, and loan volume grew by approximately five percent. We are able to announce a healthy return of profits to our members through our patronage distribution program for the 30th consecutive year."
CFO Alisa D. Gunter adds, "We’re extremely proud of our patronage program. Approximately 30 percent of the interest earned will be returned to our members in the form of patronage and allocated surplus. Of this $32.4 million, our stockholders will receive checks in the amount of $9.72 million (30 percent of the total distribution), with the remaining 70 percent, or $22.68 million, going into an allocated surplus account to be released at a later date at the discretion of the board. AgSouth has historically returned allocated surplus on a five-year revolvement, and this money we hold in reserve allows us to continue to remain strong and better able to serve our members."
In February of 2018, the association returned allocated surplus of more than $19 million from fiscal year 2012 to its members, for a total cash distribution in 2018 of nearly $29 million.
Calhoun adds, "AgSouth has a long history of paying a patronage distribution. Sharing our profits is a core principle of our cooperative and we are proud to continue the distribution of our profits to our members. Our cash distribution of nearly $29 million this year will have a significant economic impact not only for our customers but for the counties we serve as well, as these dollars turn over in the local economy. We are proud to be able to support our farmers and rural communities in this manner."
AgSouth Farm Credit provides loans for land, equipment and production agriculture; crop insurance; leasing; and home mortgages. The association is headquartered in Statesboro, Ga.
For more information about AgSouth or the patronage program, please contact AgSouth CFO Alisa D. Gunter at 912-764-9091 x 2663.