AgSouth announces net earnings of $40.1 million in 2016, will return $28.5 million to members

AgSouth Farm Credit recently announced that its net earnings for 2016 were $40.1 million and that approximately $28.5 million would be returned to members through the company’s patronage distribution program.

“The association remained strong in 2016, and loan volume grew by approximately 5 percent,” AgSouth Farm Credit CEO Pat Calhoun said. “We are able to once again announce a healthy return of profits to our members through our patronage distribution program.”

AgSouth will provide $8.55 million, or about 30 percent of the total distribution, to members in the form of checks, while the remaining 70 percent, amounting to $19.95 million, will go into an allocated surplus account that the company’s board of directors will release at its discretion. Typically, the board releases allocated surplus on a five-year revolvement.

“Sharing our profits is a core principle of our cooperative and we are proud to continue the distribution of a portion of our profits to our members,” Calhoun said. “Our cash distribution of more than $28.5 million this year will have a significant economic impact not only for our customers but for the counties we serve as well as these dollars turn over in the local economy. We are proud to be able to support our farmers and rural communities in this manner.”