LEXINGTON, Ky. (April 12, 2012) – Central Kentucky Ag Credit has declared $1.3 million in patronage payments to association borrowers in the Bluegrass Region, according to a press release from the organization.
The patronage payout is being made in full cash payments to members who were Ag Credit borrowers last year (2011). The 2011 patronage distribution is the largest in association history.
The amount is 53 percent greater than the amount paid to borrowers in 2010, said Jim Caldwell, president and CEO of Central Kentucky Ag Credit.
Patronage distributions to borrowers are determined after all association expenses are calculated, and after adequate reserves are set aside to cover anticipated loan volume growth. The patronage distribution process is unique to cooperatives.
Central Kentucky Ag Credit provides rural lending services to farmers, part-time farmers and rural residents in its 17-county Central Kentucky service region. Eligible members who borrow from Ag Credit are allocated patronage based on usage of the cooperative’s services.
Central Kentucky Ag Credit is a Lexington-based financial cooperative with branch offices in Richmond, Stanford, Lebanon, Danville and Paris.