STATESVILLE — Carolina Farm Credit is retiring $12.2 million in cash, representing 100 percent of the 2008 series of qualified allocated surplus and 100 percent of the 2008 series of non-qualified allocated surplus.
The association had also declared a patronage of $18.4 million in April of this year with $5.5 million being distributed in cash. With cash patronage in the spring, and the retirement of this surplus, the total cash returned to stockholders in 2015 is $17.7 million.
“Each year, part of the patronage refund has been paid in cash; the balance has been placed in surplus accounts for each member. This is the 27th consecutive year we’ve paid a patronage refund,” said Board Chairman Mark Bray. “Since 1988, Carolina Farm Credit has declared patronage totaling more than $422 million to be paid to its member-borrowers through patronage refunds and retirements of allocated surplus. The board is pleased to retire the 2008 series to members. The association is strong and has taken steps to position itself to weather further economic adversity and continue to be a dependable source of credit to agriculture.”
Customers can visit Carolina Farm Credit’s website to learn more about the patronage program or to calculate what the patronage refund may be on a loan.
Carolina Farm Credit is a stockholder-owned cooperative providing financing to full and part-time farmers and agricultural-related businesses and also provides financing for the construction and purchase of homes in 54 counties through 36 branch offices. Other financial services available are credit life insurance, crop insurance, appraisal services, leasing programs and financial planning.
“Our members will not only gain financial benefits from the surplus letirement, it will help them better the linkage between their investment in the Association and benefits derived from doing business with a farmer-owned cooperative,” CEO Vance C. Dalton Jr. said. “Like other financial institutions, Carolina Farm Credit charges a competitive interest rate; however, unlike other financial institutions, Carolina Farm Credit returns the majority of its profits to borrowers, which reduces their effective interest rate.”
Carolina Farm Credit serves more than 9,220 members with loans outstanding totaling more than $1.4 billion. The association’s territory covers the western half of North Carolina, with branch offices located in Ellerbe, Wadesboro, Carthage, Monroe, Albemarle and numerous other cities.