AgCredit — one of northern Ohio’s largest lenders for farmers, rural homeowners and agribusiness—recently reported net income of $47.4 million and distributed $18 million of its profits in cash to its member owners.
The cooperative returns amount to 26 cents on every dollar of loan interest accrued on a member’s loan in 2015, effectively lowering their rate of interest. With the cooperative’s average rate of 4.9 percent, this reduced a member’s interest for 2015 to 3.63 percent. The Board of Directors determines annually the portion of the cooperative’s profits to be distributed to its member owners and the amount to be retained with the cooperative.
Over the past five years, AgCredit has averaged a return of 29.41% in profit sharing and has distributed a total of $227 million to its member-owners over a period of 29 consecutive years.
“With lower commodity prices now being experienced, the $18 million distribution comes at an ideal time for many of our members,” said AgCredit CEO and President, Brian Ricker. “The cooperative principle of returning profits to our member owners truly sets AgCredit apart from competitors,” said Ricker, who shared and reviewed information about the cooperatives financial status with the more than 450 members and guests who attended its annual meeting held April 13, at Ole Zim’s, near Gibsonburg.