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Michigan Farm Bureau Financial Status
Michigan Farm Bureau (MFB) is in a position of financial strength with $20.5 million of assets and shareholder’s equity of $16.2 million as of December 31, 2019 (includes MFB, Inc. and MFA). Membership dues is the primary source of the organization’s funding representing 49% of total revenues in 2019. Affiliate funding represented 28% of total revenues, providing approximately $5.4 million in funding in 2019. MFB, when combined with MFB, Inc. and MFA, ended 2019 with approximately 15 months in reserves.
MFB’s financial projections currently reflect a net loss in fiscal years 2020, 2021 and 2022. MFB management and affiliate partners have proven the effectiveness of a funding model that has ensured operating needs are met and will continue to in outlier years. Contributions through MFA, a 501(c)3 organization, is one of the strategies implemented. See financial projections in the appendix section for further information.
MFB’s investment in Michigan Farm Bureau Financial Corporation (Financial) is carried on its books at its original cost of $25,375. The book value of Financial’s underlying assets has grown substantially during the last seventy years, reaching approximately $795 million as of December 31, 2019. The book value of Financial’s capital stock and other equity was approximately $786 million as of December 31, 2019. The market value of Financial is unknown. However, it is reasonable to presume that it is greater than book value.
APPENDIX
Financial Information