Keystone Cooperative, Inc., an Indiana-based cooperative operating in agriculture and energy markets, announced a $68 million patronage distribution to eligible farmer-members who conducted business with the cooperative in 2024.
Kaystone membership will reportedly receive between 80% to 90% of the patronage payment in cash based on their legacy membership, and the remaining percentage will be utilized toward their equity in Keystone. In addition to the payout, Keystone is also expected to redeem $3.8 million in equity to its farmer-members. The cooperative stated that the cash return of over $60 million is a showcase of the financial performance of the cooperative.
The cooperative stated that 57% of its 2024 net income will be distributed as patronage payments to members in January 2025, and the remaining profits will be reinvested into the cooperative’s infrastructure to ensure that the cooperative is well-positioned to continue serving current members and future generations of farm families. The cooperative stated that a projected $100 million in capital investments will enhance the cooperative’s ability to meet the needs of its membership.
The cash return follows the recent merger of Ceres Solutions and Co-Alliance to establish the cooperative, which was completed in March 2024. The cooperative stated that the patronage distribution would not have been possible without the merger and the continuous collaboration of employees and assets working together.
The cooperative noted that 100% of profits derived from membership businesses are being returned directly to members with each member’s patronage payout being calculated based on the volume of business conducted with the cooperative during the fiscal year, which equates to approximately 5% of members’ transactions in 2024. Keystone President and CEO Kevin Still discussed the importance of the payout.
“This significant cash return is a powerful demonstration of the cooperative advantage,” Still said. “The cooperative model has served generations of farmers, and our commitment is clear: when the cooperative succeeds, our members directly benefit. This $68 million distribution reflects the trust and loyalty of our members who choose to do business with Keystone.”
Keystone membership is open to individuals with active farm operations who complete a membership application.
Chairman of Keystone’s Board of Directors Bill Peters explained his viewpoint on the impact of the payments made to members.
“These payments empower our members to reinvest in their farms, communities, and local economies,” Peters said. “Rural America thrives on service and collaboration, and this patronage will undoubtedly strengthen the communities our members call home.”
In 2024, Keystone was noted for its community investments, such as donating $1 million to support local initiatives with a focus on agriculture education and leadership, food security and farm and energy safety training.
Keystone will host its annual meeting on Jan. 14 at 10:30 a.m. at the Indianapolis office. Additional company update meetings will occur on Jan. 15 at 10:30 a.m. in LaPorte and Jan. 16 at 10:30 a.m. in Richmond.
