Indiana-based agriculture and energy cooperative Keystone Cooperative, Inc., has announced it will be paying $68 million in patronage to eligible farmer-members who conducted business with the cooperative in 2024.
Keystone members will receive between 80-90 percent of this patronage payment in cash, based on their legacy membership. The remaining percentage will go towards their equity in Keystone.
In addition to the cash patronage payout, Keystone will also be redeeming $3.8 million in equity to its farmer-members. This exceptional cash return of over $60 million underscores the cooperative’s strong financial performance and commitment to delivering value to its members.
Fifty-seven percent of Keystone’s 2024 net income will be distributed as patronage payments to members in January 2025. The remaining profits will be strategically reinvested into the cooperative’s infrastructure, ensuring Keystone is well-positioned to serve today’s members and future generations of farm families. A projected $100 million in capital investments will further enhance the cooperative’s ability to meet the evolving needs of its membership.
The significant cash return to members for 2024 highlights the value of the Ceres Solutions and Co-Alliance merger, completed in March of 2024. This significant patronage distribution would not have been possible without the formation of Keystone Cooperative, and the continuous collaboration of employees and assets working together to serve farmer-members every day.
Notably, 100% of profits derived from membership business are being returned directly to members. Each member’s patronage payout is calculated based on the volume of business conducted with the cooperative during the fiscal year, equating to approximately five percent of members’ transactions in 2024.
In 2024, Keystone also demonstrated its commitment to community investment by donating $1 million to support local initiatives, with a focus on agriculture education and leadership, food security, and farm and energy safety training.
“This significant cash return is a powerful demonstration of the cooperative advantage,” said Kevin Still, President and CEO of Keystone Cooperative. “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 Cooperative officially began operations on March 1, 2024, as the result of a merger between two previous farmer-owned cooperatives: Co-Alliance and Ceres Solutions. From the merger, Keystone Cooperative now serves the interests of 20,000 farmer-owners across Indiana, Michigan, Illinois, and Ohio.
“The key to the merger was to bring the best of both co-ops together,” says Still. “In doing so, we enhanced our talent and utilize our size and scale to leverage purchasing power, so there’s just things like that that. Bringing the two co-ops together, we’ve been able to enhance the return for our farmers.”
“These payments empower our members to reinvest in their farms, communities, and local economies,” added Bill Peters, Chairman of Keystone’s Board of Directors. “Rural America thrives on service and collaboration, and this patronage will undoubtedly strengthen the communities our members call home.”
Keystone’s annual meeting is scheduled for January 14, 2025, at 10:30 AM EST at its Indianapolis office. Additional company update meetings will take place on January 15 in LaPorte, Indiana (10:30 AM CST) and January 16 in Richmond, Indiana (10:30 AM EST).
For more information, visit www.KeystoneCoop.com.
CLICK BELOW to hear Hoosier Ag Today’s conversation with Kevin Still, CEO of Keystone Cooperative, as shares the patronage announcement and talks further about how the merger that created Keystone Cooperative has helped improve service for farmer-members.
