MFA Oil Company, a farmer-owned cooperative, recently declared it will pay $11.8 million in cash to its members in exchange for doing business with the company.
The announcement was made at the 87th Annual MFA Oil Delegate Meeting, which was held in Branson, Mo. on Nov. 15 and 16. Approximately 500 delegates, guests and employees of the company were in attendance at the meeting, where MFA Oil reported company-wide earnings for the 2016 fiscal year of $33.6 million.
The annual disbursement of patronage and equity redemptions are approved by the MFA Oil Board of Directors, which is composed of eight farmer-leaders who are elected by the members of the cooperative. The patronage distribution represents 80 percent of MFA Oil’s member earnings for the 2016 fiscal year and includes a retirement of member equities from 2003.
“Our company has a strong balance sheet, which allows us to return a substantial portion of our earnings in patronage,” says Benny Farrell, MFA Oil Board chairman. “This is the third consecutive year that we’ve returned 80 percent of the company’s member earnings to our qualified farmer-owners in cash.”
MFA Oil members are eligible to receive patronage refunds based on a percentage of the total money they spend on products such as gasoline, diesel, propane and lubricants purchased through the company’s refined fuel and propane plants, as well as at Petro-Card 24 stations.
“Patronage refunds allow our nearly 40,000 farmer-owners to share in the cooperative’s success and rewards members for doing business with the company,” says Mark Fenner, MFA Oil president and CEO. “The $11.8 million in patronage for fiscal 2016 represents the fifth-largest return to the membership in the company’s 87 years of existence.”
Prior to the financial announcements, MFA Oil delegates elected Kim Diehl of Butler, Mo., to represent the company’s West Central district on the board of directors. Joey Massey of Paragould, Ark., was re-elected to the board to represent the Mid-South district.