One of the benefits of doing business with your local, farmer-owned cooperative is having a portion of the co-op’s profits made in a year paid back to you through patronage. That’s why Indiana-based Co-Alliance is excited about their patronage announcement.
“This year we had record profits and we plan on returning $45 million in cash and equity back to our farmer-owners,” says Kevin Still, President and CEO of Co-Alliance Cooperative (above right).
He shared with Hoosier Ag Today that the $45 million represents 51 percent of the company’s profits from their 2022 fiscal year.
“It’s an unprecedented amount for us,” says Still. “We had record earnings this year really pertaining more to our agronomy division because of some margin increase there. Anybody in the ag industry experienced great profits, but the difference is we get to return those excess profits back to our farmers. Our competitors don’t do that. That’s why we like to say, ‘We give our profits back to Main Street, not back to Wall Street.’”
Still adds that the amount paid back to each farmer-owner will be based on the volume of business they completed during Co-Alliance’s fiscal year of Sept. 1, 2021 and Aug. 31, 2022. Approximately 5.5 percent of the members’ business is being paid back this year.
Still says the remaining 49 percent of Co-Alliance’s profits are being reinvested back into the company.
“Out of the $86 million, if we pay back $45 million, that leaves about $40-some million to reinvest into capital projects and reinvest into our equipment and facilities,” says Still.
Tim Burke of Carroll County (above left), who serves as Co-Alliance’s board chairman, says he’s looking forward to receiving his patronage refund — and he credits the company’s leadership and employees for making it happen.
“Oh yes, it’s very nice and I’m very glad to get it. It just makes the whole process seem like it worked right,” says Burke. “It’s teamwork all the way around. We have wonderful leadership and very dedicated employees that are willing to do the extra to make this work.”
In addition to the patronage, Co-Alliance has recently donated over half-a-million dollars to 4-H, FFA, and other community organizations throughout 2022.
“We’re really committed to food security, farm safety, and farm education That is the future of our company, so we want to continue to support that,” says Still.
Co-Alliance has more than 11,000 farmer-owners throughout Indiana, Ohio and southern Michigan.
Click HERE to learn more about Co-Alliance Cooperative.