Financial Services
Member Equity
A member's allocated equity represents their share of the Cooperative's total allocated equity position. The allocated equity is based on the pounds delivered in the crop year and fiscal year indicated.
The Cooperative retains 50 pts/lb. at the time of initial advance on each member bale delivered. The allocated equity retains are redeemed at the Board's discretion with a timely revolvement targeted at seven to ten years from issuance.
In addition to the revolving allocated equity, the Board supplements the Cooperative's equity position with income from its subsidiary operations. This income is retained in the form of unallocated equity and helps to maintain adequate capitalization for growth and risk management of the Cooperative. Maintaining a healthy balance sheet is essential to the long-term viability of the Cooperative.