As an agricultural lending cooperative, Central Kentucky Ag Credit is owned by the member-borrowers who purchase stock/participation certificates in the cooperative. At the end of each fiscal year, our board of directors may choose to either retain the Association’s net income to strengthen its capital position or distribute some or all of the net income to members by declaring a patronage distribution.
When we distribute our profits to our members, it reduces their effective cost of borrowing. And it demonstrates that there are distinct financial benefits in doing business on a cooperative basis.
Since 1998, Central Kentucky Ag Credit has distributed more than $41 million to qualifying customer-owners in the form of patronage. Ag Credit is a true financial cooperative!