By Nichole Gouldie, Communications Specialist
Based on the success of the MKC investment program, the
board of directors has voted to increase the amount of the investment opportunity
for patrons of MKC. The program is currently open for investments.
“The financial strength and stability of MKC remains
extremely strong and we are continually looking for ways to position ourselves
well into the future,” said Danny Posch, MKC chief financial officer. “We
believe the investment program truly provides a win-win opportunity for
investors and MKC alike. By working together, we will continue to ensure we are
in a position to take advantage of opportunities in the marketplace together
with lessening the reliance on external funding sources to meet the working capital
needs of the cooperative.”
There are two separate types of programs offered. The
Certificate of Indebtedness program is a certificate written for a specified
period of time. This program offers a 3.5 percent fixed interest rate on a
three-year note, 4.0 percent fixed interest rate on a four-year note and a 4.5
percent rate on a five-year note.
The Demand Note program works much like a standard
short-term investment account. Money can be transferred in and out of the
account in a certificate that will each earn a rate of return that is very
competitive in today’s marketplace. For the Demand Note program, the variable
interest rate is currently at 2.5 percent and can be transferred or converted
to a Certificate of Indebtedness.
Investors must be Kansas residents and an MKC stockholder.
The limit of investment per investor is $300,000. Interest is paid annually on
July 1 for both investment programs.
Interested participants of the investment program are
encouraged to contact Laurie Thiesen, MKC accounts payable manager, at
620-345-4116 or lthiesen@mkcoop.com.
To help producers obtain the financing their operation needs, MKC in conjunction with the Cooperative Finance Association, Inc. (CFA), provide reliable financial products and services to its members for all of their fertilizer, chemical, seed and petroleum needs.