In December, the Garden Valley Technologies Board of Directors returned over $1.6M in unretired capital credits to members age 85 years or older. This payout was part of a successful pilot program designed to ensure our older members have the option to receive 100% of their unretired capital credits.
Capital credits are one of the many benefits of being a GVT member. Because co-ops operate at cost, any excess revenues (called margins) are allocated and retired to members in the form of capital credits.
“As a member-owned cooperative based in Erskine, MN, it’s rewarding to see these dollars go back to people in our local communities,” explains Timothy Brinkman, CEO/General Manager of GVT. “Unlike a private company or corporation, our members earn money back for every dollar they spend with us.”
This capital credit payout comes just 7 months after GVT issued more than 16,500 checks to members totaling over $2,065,000. Meaning our members received $3.7M in capital credit payouts in 2020 alone.
Payments of capital credits at this time of year made the holiday season a little brighter for 627 members who were part of this pilot program. A member in Red Lake Falls sent a thoughtful card after receiving their payout:
“We want to thank Garden Valley and all the employees for the wonderful Christmas gift; the large check that we received this week. It was very much appreciated.”
Based upon the Cooperative’s financial condition and other considerations, the Board of Directors will determine if this is something we will continue in the future. We were pleased with the success of the pilot program and want to thank those who were able to participate.