What is in this article?:
- American AgCredit reaps records in 2011
- 2011 Dividend Payout
- American AgCredit's full‐year earnings and net interest income reached record highs in 2011, and loan quality remained stable throughout the year.
- American AgCredit paid out $34.7 million in dividend distributions to its customers, the highest customer dividend paid out in the history of the Association.
2011 Dividend Payout
Based on the strength of its 2011 earnings, American AgCredit paid out $34.7 million in dividend distributions to its customers, the highest customer dividend paid out in the history of the Association – representing 25 percent more than the previous year’s dividend of $26.3 million. Over the past six years, American AgCredit has returned just over $163 million in dividends to member‐borrowers in California, Nevada, Kansas and Oklahoma.
ʺA strong capital base and a customer dividend are important components of American AgCredit’s core business values,ʺCarli said. ʺOur Board of Directors made a unanimous commitment to return 1 percentof our borrowers’ daily loan balances, effectively reducing customer interest rates. As a cooperatively organized lender, the success of American AgCredit is our member’s success.”
On the heels of the successful merger with Farm Credit of the Heartland, ACA, late in 2009, the Association officially merged on January 1, 2012, with Farm Credit of the Mountain Plains, ACA, based in Greeley, Colo., which includes the western half of Colorado and two counties in northwest New Mexico as part of its territory.
This is the fifth merger since 2000 for the multi‐state lender, which has continued to grow its capital and loan portfolio despite the financial challenges in the lending marketplace. Continuing diversity has been a driving factor with the mergers, which allows a wide range of commodities and borrowers to help mitigate the Association’s risk profile.
CEO Ron Carli emphasized the Association’s continued focus on planned, balanced growth.
ʺOur strength lies in our diversity – the wide range of commodities financed, the broad geographical area we serve, and the spectrum of borrowers, from small family farms to major agricultural operations.ʺ
“It is our fundamental goal to ensure that financing remains available to agricultural producers who need financing in these challenging times. In order to do this, the Association must remain a safe, well‐diversified organization that can meet the needs of a constantly changing marketplace,” said Carli.