Ag Credit, an agricultural lending cooperative, has distributed $9.89 million to its borrower-stockholders in 2009.
This month, stockholders will receive $4.45 million of allocated surplus originating from the cooperative's 2004 earnings. This year's cash distributions began when $5.44 million of the cooperative's 2008 profits were paid out in April.
Ag Credit is a lending coop focusing on agricultural loans and rural home mortgages. Its borrowers are its stockholders. They regularly receive a portion of annual profits as a refund. In the past five years, Ag Credit has returned 25 cents on every dollar of interest to shareholders.
"We have paid a cash patronage to our Stockholders for 23 consecutive years, and today, we are distributing our profits faster than ever before," said Chuck Bostdorff, a Bowling Green, Ohio, farmer who is the cooperative's Chairman of the Board.
Since 1987, Ag Credit has returned more than $112 million in patronage refunds, including cash distributions, to its borrowing stockholders in Northwest Ohio.
"With the past year's volatility and turmoil in the financial sector of the economy, our stockholders appreciate the return of these allocated equities," CEO Neil Jordan says.
Ag Credit is a farmer-owned cooperative that provides farmers with loans for land purchases, equipment and production. The coop also provides rural home mortgages, credit life insurance, crop insurance, appraisal services and leasing programs. Ag Credit has more than $950 million in outstanding loans to about 4,500 members. It has 16 offices in Northwestern Ohio, serving: Crawford, Erie, Hancock, Hardin, Henry, Huron, Lorain, Lucas, Marion, Morrow, Ottawa, Paulding, Putnam, Sandusky, Seneca, Van Wert, Wood, and Wyandot counties.