AgGeorgia Farm Credit is pleased to announce that over $10.9 million is being paid to borrowers of the cooperative, with checks expected to be delivered by the last week full week of June.
“The Board is always focused on being able to return cash to our member-borrowers, but it is certainly an honor and privilege to do so in light of the overall economic environment,” said AgGeorgia Board Chairman Dave Neff. “So many in Georgia have been affected financially in recent months, and we are pleased to see these funds going to help our members and the economies of our rural communities.”
2020 marks the 32nd consecutive year the cooperative has returned profits to its borrowers, with over $393 million in cash being paid out since 1988. This distribution comes after AgGeorgia’s Board of Directors already declared dividends of over $13.9 million in April, with over $4.1 million of that paid in cash. With this upcoming cash return, AgGeorgia will have distributed over $15 million in cash to the borrowers of the cooperative in 2020.
“We are particularly proud to note that with this distribution, AgGeorgia Farm Credit has now shortened our revolvement cycle to 7 years, the minimum span set by our regulator for returning surplus to our borrowers,” said AgGeorgia CEO Jack Drew. “This is an indication of the financial strength of the Association and our board and management’s desire to return profits to our borrowers at the quickest interval possible.”
The payout consists of surplus revolvements from AgGeorgia’s 2010, 2011, and 2012 Patronage Refunds. The surplus portions were taxable when declared 2010-2012, so no additional income taxes are due on the disbursement.
