AgSouth Farm Credit Reports Net Earnings of $40.1 Million Returns $28.5 Million to Members
AgSouth Farm Credit Chief Executive Officer Pat Calhoun recently announced that the customer-owned cooperative had net earnings of more than $40.1 million during 2016. He stated that, “The association remained strong in 2016, and loan volume grew by approximately five percent. We are able to once again announce a healthy return of profits to our members through our patronage distribution program.”
Chief Financial Officer, Alisa D. Gunter adds, “We’re extremely proud of our patronage program. Approximately 27 percent of the interest earned will be returned to our members in the form of patronage and allocated surplus. Of this $28.5 million, our stockholders will receive checks in the amount of $8.55 million (30 percent of the total distribution), with the remaining 70 percent, or $19.95 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 2017 the Association returned allocated surplus of more than $19 million from fiscal year 2011 to its members, for a total cash distribution in 2017 of more than $27.5 million.
Says Calhoun, “AgSouth has a 29 year 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 a portion of our profits to our members. Our cash distribution of more than $27.5 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.