LEXINGTON, Ky. – Central Kentucky Ag Credit has announced a record $5.8 million in patronage dividends based on 2020 earnings that will be distributed by mail to eligible member-borrowers in early April.
As owners of their cooperative, Central Kentucky Ag Credit customers share in the financial success of the Association through patronage distributions. This marks the 24th consecutive year Ag Credit has returned a portion of its earnings to member-borrowers, bringing its cumulative distribution to $41 million.
Patronage dividends are often used by member-borrowers to reinvest in their operations, families and rural communities.
“In challenging times like these, we’re even more committed to ensuring that our member-borrowers can share in our ongoing financial success,” said Central Kentucky Ag Credit President and CEO Jim Caldwell. “We strive to provide the consistency that farmers in our region depend on, and we understand that these distributions strengthen our agricultural economy and the communities we proudly serve.”
At the end of each year, the Central Kentucky Ag Credit board determines the level of patronage distribution based on financial performance and future capital needs. Then it distributes the remainder as patronage dividends to owner-customers, as determined by their loan activity level during the prior year.
Ag Credit has served the Central Kentucky region since 1934 as a member of the Farm Credit System. The financial cooperative provides lending services through seven full-service offices in the Bluegrass.