AgStar announces $22.8 million in payments to clients
MANKATO -- AgStar Financial Services' Board of Directors has approved the retirement of its 2003 patronage allocations. With this retirement, AgStar distributed $22.8 million in earnings to more than 11,400 eligible stockholders.
"We're thankful to share the success of the organization with our valued clients and retire the 2003 patronage allocations," stated Lowell Schafer, Chairperson of AgStar's Board of Directors.
In 2012, AgStar has distributed $40 million in patronage dividends.
"The patronage program adds value to stockholders who already benefit from AgStar's expertise and competitive financing," Schaffer added. "As a member-owned cooperative, AgStar is committed to sharing a portion of profits to those who have helped build the organizations success. This cash patronage retirement is just one of the many ways that ownership pays for AgStar stockholders."
The patronage program was implemented in 1998 and targets a seven- to 10-year retirement timeframe of non-qualified dividends. Yearly allocations are based on company earnings and the amount of products or services a stockholder purchases from AgStar during the year.
AgStar has allocated $336 million in patronage dividends and retired more than $80 million to qualified stockholders.