AgGeorgia Farm Credit Declares Over $15 Million in Refunds; Record Return of 30% of Members’ Interest
AgGeorgia Farm Credit has announced that dividends totaling $15,678,582 have been declared by its board of directors, with 30% of borrowers’ 2020 accrued interest being returned. The 30% return is the highest percentage returned by the Association since 2003. Members should anticipate receipt of their checks the first week of April.
“I am proud of this Association’s performance in 2020, not only in light of the challenges faced by our members and staff, but primarily because of the result—a record return to our members, significantly decreasing their cost of borrowing,” said CEO Rob Crain. “It is an honor to help continue AgGeorgia’s impressive history of returning profits to its members.”
“Our board and staff look forward to this opportunity every year,” said Dave Neff, Chairman of the AgGeorgia Farm Credit Board of Directors. “Returning profits to our borrowers aligns perfectly with our mission to improve the lives of Georgia’s farmers, families, and rural communities, and we are happy to do so.”
This marks the 33rd consecutive year the cooperative has returned profits to its members through its Patronage Refund Program, with over $397 million in cash being paid out since 1988. The refund, from 2020 earnings, consists of more than $4.7 million in cash and over $10.9 million in allocated surplus, with the surplus portion to be used to maintain the capital position of the cooperative and returned to members at a later date.
“This year’s Patronage Refund lowers the average member’s stated rate by 1.50%,” said AgGeorgia’s CFO Brandie Thompson. “For every dollar of interest expense accrued by our borrowers in our general portfolio in 2020, 30 cents are being paid back to them.”