FOSTORIA - Ag Credit, an Ohio rural lending cooperative, is to distribute a near-record $14.2 million in profit-sharing to stockholding borrowers this month, according to the cooperative.
The refunds amount to 25.36 cents on every dollar of loan interest accrued last year, co-op officers said in a news release. With the cooperative's average rate of 4.7 percent, that would reduce a borrower's interest for 2012 to 3.51 percent.
Ag Credit, part of the national Farm Credit System, is a financial co-op that provides loans to farmers, agricultural businesses and rural homeowners. As a cooperative, Ag Credit's borrowers are its stockholders. A board of directors determines annually the portion of the cooperative's profits to be distributed to eligible stockholders in the form of patronage checks issued twice a year.
"The cooperative principle of profit sharing with its stockholders truly sets Ag Credit apart from competitors," said Ag Credit President Neil Jordan. "By focusing on sound lending, strong earnings, and capital management, we continue to be a reliable financial partner to farmers and the rural community in 18 Ohio counties."
Dividends are being paid in a combination of cash and allocated equities to more than 5,100 farmers and other borrowers in northwest and north Central Ohio.
In the past 26 years, customer-owners of Ag Credit have earned more than $166 million in dividends from their ownership of the cooperative.