Because of our unique cooperative structure, our customers collectively own our business. At MidAtlantic, we are committed to sharing our earnings with them, ultimately reducing the effective interest rate on their loans, says CEO, Bob Frazee.
Westminster, MD (PRWEB) April 09, 2013
MidAtlantic Farm Credit member/borrowers will receive nearly $27.3 million in patronage distributions this month. Patronage, which is a form of dividend payment, is based on the association’s year-end earnings. In 2012, MidAtlantic reported earnings of $51.7 million.
“The association’s strong financial performance enables the Association to sustain one of the most robust patronage programs in the Farm Credit System,” says CFO, John Wheeler.
Wheeler continues, “Of the $27.3 million distributed, $10.8 million will be paid to our members in cash, and the remaining $16.5 million will be held in the members’ allocated surplus account to build the association’s capital. Since 1990, MidAtlantic has declared $398 million in Patronage and has already distributed cash of $270 million directly to our members.”
CEO Bob Frazee adds, “Because of our unique cooperative structure, our customers collectively own our business. At MidAtlantic, we are committed to sharing our earnings with them, ultimately reducing the effective interest rate on their loans. On average, this distribution amounts to approximately a 1.33% rate reduction.”
To help members learn more about the patronage program, the co-op developed a video scribe to help explain the process. The video can be viewed on MidAtlantic’s YouTube channel or at patronage.mafc.com.
About MidAtlantic Farm Credit
MidAtlantic Farm Credit is an agricultural lending cooperative owned by its member‐borrowers. It provides farm loans for land, equipment, livestock and production; crop insurance; and rural home mortgages. The co‐op has over 10,400 members and approximately $2.1 billion in loans outstanding. MidAtlantic has branches serving Delaware, Maryland, Pennsylvania, Virginia and West Virginia. It is part of the national Farm Credit System, a network of financial cooperatives established in 1916 to provide a dependable source of credit to farmers and rural America.