Compeer Financial and its board of directors are pleased to announce the organization will be returning approximately $197 million in patronage payments to member-owners in 2021. Member-owners received the first payment of $52 million this month.
“One of the most important benefits of our cooperative business model is our strong patronage program,” said Rod Hebrink, president and CEO of Compeer Financial. “Member-owners can use these funds to reinvest in their farms and businesses, directly impacting local and state economies. The board of directors at Compeer Financial is strongly committed to bringing this value to our member-owners, especially as they’ve faced a multitude of challenges in the agriculture industry over the last year.”
The $197 million being paid out in 2021 represents approximately 45 percent of Compeer Financial’s 2020 adjusted earnings – and is an increase of $20 million compared to the prior year. – Compeer’s board of directors voted to increase the payments due to the organization’s strong financial performance and to reiterate the cooperative’s commitment to serving agriculture and rural America during the most challenging times.
Including the 2021 patronage distribution, Compeer Financial has disbursed $690 million in patronage since the organization was formed in 2017. Individual patronage payments are based on the amount of products and services purchased by member-owners.
Approximately 33,000 checks will be sent to farmers, rural homeowners and others with ag-related business in Illinois, Minnesota and Wisconsin. The February payment of $52 million reflects equities allocated to member-owners for business they conducted before Compeer Financial was formed in July 2017. The organization will issue a second patronage payment totaling $145 million in August for business member-owners had with Compeer Financial in 2020.