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A total of $870,349 is now being distributed to borrowers of Central Kentucky Ag Credit throughout the Bluegrass Region. Jim Caldwell, president and CEO of the major financial cooperative, has confirmed that the patronage distribution is 58 percent larger than last year.
“Ag Credit is a financial lending institution and operates as a cooperative,” said Caldwell. Ag Credit’s President further explained that, “as a lending cooperative, we are the financing component of many farm operations. When Ag Credit achieves sufficient earnings, we can distribute a portion of those profits to our patrons-the farmers who borrow from the coop”. Distributing patronage to borrowers of Ag Credit is determined and approved by the Central Kentucky Ag Credit Board of Directors, after all operating expenses and reserves are reviewed and documented.
Patronage distributions to borrowers are now taking place in 100 percent cash payments. Marcus Barnett, chief financial officer of Ag Credit, confirms that checks have already been cut and will be distributed to members over the next seven to 10 days.
Patronage was first distributed to Central Kentucky Ag Credit borrowers in 1997. During the ensuing 14 years a total of more than $10 million has been distributed to member-borrowers of the financial cooperative.
James L. May, Chairman of the Ag Credit Board of Directors and himself a farmer, said the coop’s patronage distribution comes at a time when farmers and rural residents need all the financial help they can find. “The economy has not been kind to anyone during the nation’s ongoing financial crisis, and distribution of money back to Ag Credit member-borrowers is both timely and helpful,” said May.
Patronage distributions that are currently being made are for the 2010 calendar year. Full and part-time farmers in 17 Central Kentucky counties will receive the money. Ag Credit Offices from which patronage payments are being made are located in Richmond, Lebanon, Danville, Stanford, Paris and Lexington.