Farm Credit East has announced that it will make a major patronage payment to qualified Maine customer-owners with the early redemption of $6.1 million of Allocated Retained Earnings in September 2015.
“This payment is the direct result of the success of the Farm Credit East and Farm Credit of Maine merger,” said Bill Lipinski, Farm Credit East CEO. The merger has strengthened Farm Credit East and further positioned us to serve agriculture, forest products and commercial fishing for future generations.”
This distribution is in addition to the $51 million cash patronage payment in February to all eligible Farm Credit East customers based on 2014 financial results. Prior to the 2014 merger, the Farm Credit of Maine Board committed to redeeming this allocated equity in cash back to customer-owners over a seven-year cycle.
The Farm Credit East Board reviewed capital levels and approved this redemption at their April meeting. CEO Lipinski explains, “This payment represents the planned 2015 redemption of Allocated Retained Earnings, plus the accelerated redemption of Allocated Retained Earnings originally planned for years 2016, 2017, 2018, 2019 and 2020.”
“By completing this redemption in only two years, the Farm Credit East Board says “thanks” to the Maine customers for your continuing trust and confidence in your cooperative,” said Lipinski. “The Board is committed to being good stewards of our customers’ money and is committed to operating a financially strong, successful cooperative serving Northeast agriculture. The final redemption of the Allocated Retained Earnings exemplifies the result of their efforts.”