Dairy Farmers of America Inc. has paid its membership the balance of 2008 patronage payments early to help members cope with the tough economy.
The accelerated payment of $7.6 million, in cash, equates to 2 cents per 100 pounds of milk marketed through the Kansas City-based cooperative, DFA said in a release Wednesday. DFA members received $19 million in patronage payments for 2008 in April and an additional $9.5 million in July, which was paid from 2009 earnings.
“Our members continue to experience unprecedented stress as a result of the current economic climate,” Tom Croner, DFA’s treasurer and chairman of the board’s finance and budget committee, said in the release. “By issuing patronage checks early and in cash, we hope to send a clear message to these hardworking dairy men and women that we are deeply committed to identifying options that deliver short-term relief, while we explore long-term solutions that will prevent a crisis of this proportion from occurring again.”
DFA shares earnings with its members through patronage, which is based on the amount of milk marketed through the cooperative. DFA said it is issuing the payments entirely in cash, regardless of members’ base capital level.
DFA serves and is owned by nearly 18,000 members on more than 10,000 farms in 48 states. It ranks as the largest private company in the Kansas City area, based on 2008 revenue of $11.7 billion.