BERKELEY COUNTY, S.C.–Current and former members of AgSouth Farm Credit received nearly $44 million in two separate distributions this spring. Customers in Berkeley, Charleston, and Dorchester counties received more than $755,000 in cash.
In March the cooperative returned more than $29 million for the year ending December 31, 2014. Nearly $9 million was distributed in cash, and the remaining $20.6 million set aside in allocated surplus to be returned at a later date.
The agricultural lending cooperative has typically revolved allocated surplus funds on a five-year cycle and was able to continue that model by revolving more than $14 million from 2009 in May of this year. Patronage distributed in cash from 2014 profits and allocated surplus returned from 2009 profits resulted in a total cash distribution of $23 million.
According to CFO Alisa D. Gunter, “While distribution of allocated surplus is a board decision, the revolvement of these funds has been on a consistent five-year schedule for the past 24 years. To date the association has returned more than $406 million in cash and allocated surplus to our members.”
She went on to explain that the distribution of these funds has “an enormous impact on the economies of the areas we serve.” Dr. David M. Kohl, Professor Emeritus of Agricultural Finance and Small Business Management and Entrepreneurship at Virginia Tech, projected that every dollar AgSouth returns to its customers has an estimated economic impact of five to ten dollars in the communities served by the cooperative as a result of possible investment, spending, and employment.
According to Gunter, “Using Dr. Kohl’s factors, the $23 million in cash distributions the association made this spring will have an estimated impact of $115 million to nearly a quarter of a billion dollars on the rural communities in Georgia and South Carolina served by AgSouth.”
Director William T. Robinson of Berkeley County says, “AgSouth continues to work hard to be your agricultural lender of choice. Being part of the cooperative model provides a benefit to our borrowers by sharing in our profits through our patronage program. With our professional staff and financial strength, AgSouth is well positioned to serve your future capital needs.”
For county specific information on the profit distribution and the estimated economic impact to the counties served, visit http://agsouthfc.com/about-us/patronage-program/patronage-cash-back-profits.aspx.
About AgSouth
AgSouth Farm Credit is one of the strongest agricultural lending cooperatives in the Southeast. The association provides loans for land, equipment, and production agriculture; and offers crop insurance, leasing, and home mortgages. AgSouth is headquartered in Statesboro, Ga., with administrative offices in Spartanburg, S.C., and Orangeburg, S.C.
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