Southwest Georgia Farm Credit to give back $5.5 million
Published 11:03 pm Tuesday, March 18, 2014
Southwest Georgia Farm Credit, a customer-owned financial institution, announced today that it plans to make a distribution from its 2013 earnings of nearly $5.5 million. In addition, the institution indicated that it has retired the 2005 allocated equity totaling $3.4 million. Together, this is an infusion of nearly $9 million into the Southwest Georgia economy.
“In an economy where making ends meet is becoming increasingly difficult, giving our profits back to our borrowers is what sets us apart from other lenders,” said Richard S. Monson, President, Southwest Georgia Farm Credit. “It’s the way we do business.”
Over the past 20 years, the Association has returned, on average, 23 percent of interest paid by its clients, which has the same effect as lowering the average cost of borrowing, or interest rate, by about 1 percent annually for all of its member-owners.
“We’re pleased that our year-end results allow us to return such a significant amount of money to our local economy,” said Kim Rentz, Chairman of the Board. “The Board understands the critical role Farm Credit plays in sustaining our agricultural industry and our rural communities.”
“Farm Credit makes loans for purchasing or refinancing rural real estate, financing production agribusiness, timber production and residential housing,” Monson continued. “We have a unique business model, to say the least. In an environment where folks are trying their best to stretch their dollars, we offer a very attractive solution.”