Perry, GA, May 02, 2016 --(PR.com
)-- AgGeorgia Farm Credit, an agricultural lending cooperative with over 4,000 members, is making this distribution. This marks the 28th consecutive year the cooperative has returned profits to its members, with over $305 million in cash being paid out since 1988.
The refund consists of more than $3.52 million in cash and over $8.21 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.
AgGeorgia CEO Jack Drew noted that the refunds benefit local economies throughout the state, and are unique because of AgGeorgia’s cooperative structure. "Our ability to share profits with our members is distinctive,” said AgGeorgia CEO Jack Drew. “Like other lenders, AgGeorgia charges competitive interest rates. Unlike other lenders, the profits we make come back to the borrowers.” Drew added, “It is a great feeling to know we are re-investing in Georgia communities, as so much of this refund goes to members in rural areas where the impact of these dollars is proportionately greater.”
"The patronage refund significantly reduces our members’ cost of borrowing, this year lowering the average member’s stated rate by 1.45%," said AgGeorgia CFO Carrie McCall. "For every dollar of interest expense accrued by our borrowers in 2015, 27 cents is being paid back to them.”
About AgGeorgia Farm Credit
AgGeorgia Farm Credit is an agricultural lending cooperative owned by its member-borrowers, proud to have been helping Georgia grow for generations. AgGeorgia provides farm loans for land, equipment, livestock and production; rural home mortgages, and services such as crop insurance and leasing. AgGeorgia Farm Credit has 20 branches serving 79 counties in Georgia. It is part of the national Farm Credit System, a network of financial cooperatives established in 1916 to provide a dependable source of credit to farmers and rural America. For more information, visit www.aggeorgia.com.