Southwest Georgia Farm Credit distributes $5M in profits to its members

Published 5:14am Thursday, March 14, 2013

Special to The Post-Searchlight

Southwest Georgia Farm Credit members will receive checks totaling $2.5 million, which represents the cash portion of a $5 million patronage distribution based on 2012 earnings, according to a Farm Credit press release.

The balance of the distribution is placed in an account in members’ names, and is used to capitalize the association for five years. With sound financial conditions, the Board of Directors can decide to retire the allocated surplus at that time, and distribute the funds. Customers can expect to receive the cash portion of the 2012 distribution in late March.

“We’re pleased that the association performed well this past year and that Southwest Georgia Farm Credit customers have the opportunity to share in that success,” said Bobby Brooks, chairman of the board of directors of Southwest Georgia Farm Credit. “Our customers, and their loyalty and commitment to the association, are the reason for our success.”

The patronage distribution essentially reduces the cost of borrowing money. Since 1991, Southwest Georgia Farm Credit has distributed $83.6 million in patronage to its members.

“The patronage distribution is a way for us to show our members that there is a distinct benefit to doing business with us,” said Richard S. Monson, president and CEO. “While many businesses return their profits to their investors, Southwest Georgia Farm Credit is a cooperative, meaning we share our profits with those who do business with us.”

Southwest Georgia Farm Credit is a locally owned and controlled financial cooperative headquartered in Bainbridge, and is part of the nationwide Farm Credit System, established by Congress in 1916 to ensure rural areas have access to competitively priced financing. Five offices serve 21 counties, offering a variety of loan and leasing programs. Residential mortgages are also available.

For more information on Southwest Georgia Farm Credit’s Patronage Distribution Program, call (229) 493-0149.

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