2022 Equity Payments to Member-Owners
Oct 31, 2022
Central Valley Ag Delivers Value to Member-Owners in the Form of $15.5 Million of Equity Payments
(York, NE) – Central Valley Ag (CVA) continues to give back to member-owners, demonstrating the cooperative spirit. As a farmer-owned cooperative, CVA is truly for the farmers – by the farmers.
The equity of the farmers/members can eventually be returned to them in cash payouts throughout their membership. Earlier this year, CVA’s Board of Directors approved the distribution of year-earned and age-based equity payments to its member-owners totaling almost 15.5 million dollars.
A payment of 13.15 million dollars is being made to member-owners based on their business with the cooperative in 2008. Additionally, approximately 2.2 million dollars of age-based equity and retirements was distributed to members that were age 65 or older as of December 31, 2021.
“I am proud of CVA’s performance and our ability to return equity to our member-owners,” said Carl Dickinson, CEO of Central Valley Ag. “It is compelling to have the cooperative in a position to give back to the membership. Not only are we able to provide them products and services, but because of CVA’s performance, we are able to return cash.”
When a co-op is profitable, dollars are returned back to owners in two ways, the first is through cash patronage. This is a direct return back to producers based on the amount of business they have done with the co-op.
In addition to cash patronage, the co-op has earnings that are reserved for later distributions. In the short-term, these equity dollars are an investment by members in their co-op and can be used by the co-op to make capital improvements, which further grow the business or make the co-op more efficient
“The cooperative would not be where it is without the loyalty of our member-owners. This business is for the farmers. It is always an honor to share with them the success of the cooperative,” said Dickinson