Yankee Farm Credit today distributed $5.1 million to its members who borrowed from the cooperative. This distribution represents approximately 55% of Yankee’s 2016 net income of $9.3 million.
Brenda Frank, Yankee Farm Credit’s President and Chief Executive Officer, said that Yankee sent out payments to 1,358 borrowers on March 22nd. The payments represent patronage refunds, which allow Yankee members to share in the cooperative’s 2016 earnings.
Ms. Frank explained, “The patronage refunds we provide to members are based on the profits that our association generated last year. This cash patronage refund effectively reduced average loan rates to members by approximately 23% in 2016. The remaining profits are held as Association equity to keep the balance sheet strong through all cycles”
Ms. Frank added, “Patronage refunds represent one of the advantages of borrowing from your local agricultural credit association. The refunds were possible due to our high quality loan portfolio. ”
Yankee Farm Credit has paid patronage refunds to its members every year since 1995. Total payments over those 22 years have exceeded $68 million.
Yankee Farm Credit is a member-owned cooperative which provides loans and financial services to farmers and other rural customers. Yankee is an agricultural credit association (ACA) within the national Farm Credit System. Yankee serves all of Vermont, four counties in New Hampshire (Cheshire, Coos, Grafton and Sullivan) and two counties in New York (Clinton and Essex).
For more information about Yankee visit the association’s web site at www.yankeeaca.com