MidAtlantic Farm Credit announced the distribution of $12.5 million to its customers this month as part of the nonqualified allocated surplus (NQAS) the association issued in 2005 and 2006. This is in addition to the $21.2 million MidAtlantic Farm Credit distributed to its customers in February and March, bringing the total patronage distribution to over $33.7 million in cash during 2014.
MidAtlantic Farm Credit is a member-owned cooperative and part of the nation-wide Farm Credit System, serving customers in Delaware, Maryland, Pennsylvania, Virginia, and West Virginia. As a cooperative, MidAtlantic Farm Credit can share a portion of its annual profits with their borrower-members. At the end of each fiscal year, Farm Credit determines its total income and expenses. Income remaining after all expenses are deducted can then be distributed in accordance with the association’s bylaws.
“Our ability to distribute this additional $12.5 million directly to our local communities is a sign of our commitment to agriculture and our financial strength as an association,” says Bob Frazee, CEO of MidAtlantic Farm Credit. “The money that we’ve been able to put back into our community is good for both our customers and the businesses that they work with locally. It’s a great benefit to belonging to a local cooperative like Farm Credit.”
For more information about Farm Credit’s patronage program, please visit www.mafc.com/patronage-program.php.