FCA Regulations defines a cooperative as "any association of farmers, ranchers, producers or harvesters of aquatic products, or any federation of such associations, or a combination of such associations and farmers, ranchers, or producers or harvesters of aquatic products that conducts business for the mutual benefit of its members."
As a cooperative, Legacy Ag Credit, ACA has adopted the cooperative business principle of refunding a portion of our annual earnings back to our stockholders in the form of patronage payments.
At the end of each fiscal year, the board of directors assesses the financial strength and success of the association. The patronage amount paid to borrowers is based on their average outstanding balance during the patronage year.
FEBRUARY 2008 - Legacy Ag Credit, ACA is pleased to announce a cash patronage payout based on the 2007 earnings. Due to the financial success of the association in 2007, the board declared a cash patronage payout of $1,250,000.
The directors continually seek opportunities that will benefit our stockholder-borrowers. In 2007, Association earnings were used to help reduce borrowing costs to our borrowers. This cash patronage reflects an approximate 50 basis point reduction in the effective borrowing rate of an average borrower..
2007 represented a record year in new loan business, and in 2008 we will continue with our commitment to maintain a strong Association and provide a variety of products and services to the communities we serve.
