Keystone Announces Special $38.4M Member Payout

Keystone Cooperative announced today a onetime special equity redemption totaling $38.4 million, representing approximately 43% of all named equity outstanding. This historic distribution reflects Keystone’s long-standing commitment to return value to farmer-members and to uphold the strength, sustainability, and future of family farms across its service area. 

The special equity redemption is being issued at a time when many farm operations face significant economic pressure. Keystone’s Board of Directors and leadership team approved the payout as a meaningful way to deliver financial relief without compromising the cooperative’s ability to invest strategically in people, facilities, assets, and long-term growth. 

“This redemption is a powerful demonstration of what makes cooperatives unique: value flows back to the people who help create it,” said Kevin Still, President & CEO of Keystone Cooperative. “Our financial strength, which has been accelerated by recent mergers, operational synergies, and continued member loyalty, allows us to return capital at a moment when it can truly make a difference for farm families.” 

This redemption includes member equity issued from 1967 through 2020 and is not taxable income, as taxes were paid in the year the equity was earned. Members must be in good standing to receive the distribution, and checks are being mailed directly to eligible farmer-members. 

This Special Equity Redemption is part of a broader return of member value in 2026. In total, Keystone will distribute $93.7 million to farmer-members this year, including: 

• $48 million in Cash Patronage 

• $7.3 million in Age 70 Redemptions 

• $38.4 million in this one-time Special Equity Redemption 

The cooperative will continue to honor its Age 70 redemption policy, and legacy Harvest Land equity issued prior to the 2021 merger remains unaffected, as it was previously returned. 

“Our cooperative was built by generations of farmers who believed in shared success, resilience, and long-term vision,” said Bill Peters, Chairman of the Board of Directors. “As Keystone approaches its 100-year anniversary in 2027, this redemption underscores our commitment to supporting member-owners today while safeguarding the financial strength that will carry us into the next century.” 

“The heart of our cooperative is, and always will be, our farmer-owners,” Still added. “Together, we are building a bright, resilient, and optimistic future for the next generation of agriculture.”