Farm Credit retires allocated surplus
Southwest Georgia Farm Credit customers recently received their portion of an allocated surplus distribution totaling $2.8 million. These checks represent the balance of a distribution of final net earnings originally made in 2001, where customers received $2.8 million.
Each year, a portion of the association's net earnings is paid in cash and the balance is placed in an allocated surplus account in the customer's name. After using these funds to capitalize the association for five years, and with sound financial conditions, the board of directors can decide to retire the allocated surplus. "Our members have received a patronage refund every year since 1988, totaling over $77 million," stated Bobby Brooks, chairman of the board.
Richard S. Mouson, president and chief executive officer of the association, stated, "Customers not only gain financially from the surplus retirement, they also see more clearly the linkage between their ownership of the association and benefits derived from doing business with a financial cooperative."
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