Release date: 3/26/2015
March 26, 2015 – Rural borrowers throughout central Kentucky will receive part of a $2.8 million Patronage Distribution in April. The money being distributed to Ag Credit member-borrowers represents successful Association financial activity last year.
Ag Credit borrowers in 17-counties are sharing in the major distribution. Counties include Anderson, Bourbon, Boyle, Clark, Fayette, Franklin, Garrard, Harrison, Jessamine, Lincoln, Madison, Marion, Mercer, Montgomery, Scott, Washington and Woodford.
Jim Caldwell, President & CEO of Central Kentucky Ag Credit, says Patronage Distribution is a form of dividend payment based on Ag Credit earnings. Explaining further, Caldwell said, “Ag Credit is a cooperative and we are owned by those who use the Association’s financial services. When the Association experiences good financial performance, member-borrowers of Ag Credit can potentially receive their part of Association profits.”
The current Patronage Distribution is the second largest in the history of Ag Credit. Last year (for 2013 operations) was the largest in history, when member-borrowers received $2.9 million.
Money has been distributed to Ag Credit member-borrowers for the past 18 consecutive years. During that time Patronage Distribution has totaled nearly $19 million.
The decision to distribute funds to Ag Credit borrowers is made by the Association’s Board of Directors after all operating expenses are covered and adequate reserve funds set aside for future lending operations. The Board of Directors consists of five members who are elected by the Ag Credit membership and another two members appointed by the Board as Outside Directors.
Alvin Lyons, a prominent Scott County farmer and Chairman of the Ag Credit Board of Directors, says Patronage Distribution has the effect of reducing the effective cost of borrowing to those who receive money. Mr. Lyons said, “We offer a competitive interest rate upfront, then return a portion of our profits to our membership through the patronage program. We know that money being distributed at this time of the year will be of great benefit to the region as farmers escalate spring planting and livestock operations.”
Jim Caldwell has confirmed that Ag Credit will have open-house celebrations at all office locations on April 6. “It is our way of having a ‘Customer Appreciation Day’ where people can come to our offices and pick up their Patronage checks,” says Caldwell.
Ag Credit’s Customer Appreciation Day will take place from 9:00 a.m. – 4:30 p.m. on April 6, with refreshments served all day.
Offices are located in Richmond, Lexington, Danville, Lebanon, Paris and Stanford.
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