Release date: 4/10/2013
Borrowers of Central Kentucky Ag Credit are receiving $1.8 million in patronage distribution during April of this year. Patronage is being paid for the cooperative’s 2012 business year and borrowers will receive their patronage in cash.
According to Jim Caldwell, President and CEO of Central Kentucky Ag Credit, “payment of the 2012 patronage distribution is a salute to members who are meeting their loan obligations in an outstanding manner, and to Ag Credit’s Board of Directors and staff, who continue to manage Ag Credit in an outstanding manner.”
Marcus Barnett, Ag Credit’s Chief Financial Officer, confirms that patronage distribution to Ag Credit borrowers is determined after the cooperative has set aside adequate capital reserves to meet future loan demands and all other operating expenses.
The $1.8 million currently being paid to the cooperative’s members brings the 16-year total of Ag Credit patronage to over $13 million. According to Ag Credit officials, patronage can be compared to distribution of dividends in a corporation. The difference lies in the fact that patronage distribution in Ag Credit is paid to member-borrowers who also use the financial services of the cooperative, and who essentially are owners of Ag Credit.
When Jim Caldwell announced the $1.8 million patronage distribution at Ag Credit’s Annual Meeting in late February, he told member-borrowers that the cooperative also achieved several other “high water” marks during the 2012 business year.
“This distribution is a high-water mark in the history of Central Kentucky Ag Credit,” says Jim Caldwell. He says the distribution is made even more significant since Ag Credit also achieved $362 million in assets at the end of the 2012 calendar year. “In addition, quality of the lending portfolio of Central Kentucky Ag Credit ranks highly among the nationwide Farm Credit System,” confirms Caldwell.
Ag Credit has a solid equity base of $47 million that has been built over 79 years of financial service. That base reinforces Ag Credit’s ability to meet member loan needs. Central Kentucky Ag Credit provides rural lending services to farmers, part-time farmers, and rural residents who are located in a 17-county central Kentucky region.
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