Dairy Farmers of America, Inc. (“DFA” or the “Company”), one of the nation’s largest farmer-owned cooperatives and a leading force in the U.S. dairy industry, announced today an important milestone in its ongoing capital management strategy. The Company has formally declared that it will redeem all 750,000 outstanding shares of its 7 7/8% Series B Cumulative Preferred Equity Securities, with a par value of $100.00 per share (“Preferred Securities”), on December 22, 2025 (the “Redemption Date”).Dairy Farmers This decision reflects the Company’s commitment to maintaining a strong financial foundation, meeting its long-term obligations, and returning value to stakeholders in a clear and transparent manner.
The redemption will be executed at a cash redemption price of $100.00 per share, which corresponds to the full par value of the Preferred Securities. In addition to the par value, the redemption payment will include all accrued and unpaid dividends—regardless of whether those dividends have been previously declared—accrued up to, but not including, the Redemption Date (the “Redemption Price”). As outlined in the Company’s governing Certificate of Designations, dividend accrual on the Preferred Securities will cease as of the Redemption Date. Once the redemption is completed, Dairy Farmers the Preferred Securities will no longer be considered outstanding, and all associated rights and privileges held by securityholders will terminate, with the sole exception of each holder’s right to receive the Redemption Price, without interest.
The Preferred Securities were issued in book-entry form and are currently held through the Depository Trust Company (“DTC”), a major U.S. clearing and settlement organization used by the financial industry to securely manage securities transactions. DFA has confirmed that the redemption process will follow DTC’s established procedures to ensure accurate handling and timely distribution of proceeds to the beneficial owners of the Preferred Securities.
In connection with the redemption, Computershare Trust Company N.A. (“Computershare”) has been appointed as the official redemption agent (the “Redemption Agent”). Dairy Farmers Computershare, a leading provider of corporate trust, transfer agency, and financial administration services, will coordinate the payment and settlement processes on behalf of DFA. Its responsibilities will include delivering redemption payments to DTC, processing documentation, and ensuring that all steps in the redemption process comply with applicable regulations and with the Company’s Certificate of Designations. For administrative purposes or securityholder inquiries, the Redemption Agent may be contacted at the following address:
Computershare Trust Company N.A.
150 Royall Street
Canton, MA 02021
Attn: Corporate Actions
This redemption announcement also serves as an official notice of redemption pursuant to the provisions of DFA’s Certificate of Designations governing the Preferred Securities.Dairy Farmers In accordance with these provisions, no further individual notices will be required for holders whose shares are maintained in book-entry form through DTC, as DTC’s internal notifications to its participants—typically banks, brokers, and financial institutions—constitute valid notice under the terms of the Certificate of Designations.
Expanding on the Significance of the Redemption
The full redemption of the 7 7/8% Series B Cumulative Preferred Equity Securities marks an important financial milestone for Dairy Farmers of America. The Series B Preferred Securities, which carry a relatively high fixed dividend rate of 7.875%, represent an ongoing financial obligation that the Company has now elected to retire. Redeeming these securities helps DFA streamline its capital structure, reduce future dividend expenses, and enhance financial flexibility moving forward.
Preferred equity securities of this type are often used by cooperatives and private companies to access capital while maintaining governance structures that favor member-owners over external shareholders. Dairy Farmers By retiring the Series B shares, DFA signals the completion of a chapter in its capital-raising strategy while demonstrating its ability to honor long-term commitments to investors and partners.
Furthermore, the redemption comes at a time when many cooperatives and agricultural businesses are evaluating their balance sheets amid changing market conditions, supply chain volatility, and evolving consumer demand in the food and dairy sectors. By proactively redeeming these securities, DFA showcases prudent financial management and strengthens its position for future investments in operations, technology, and member services.
What Holders of the Preferred Securities Need to Know
Because all outstanding shares of the Preferred Securities are held in book-entry form through DTC, beneficial owners do not need to take any direct action to receive their redemption proceeds. Dairy Farmers DTC will process the redemption automatically, and participating brokers or financial institutions will credit the appropriate amounts to clients’ accounts.
Key details for holders include:
- Redemption Date: December 22, 2025
- Redemption Price:
- $100.00 per share (par value), plus
- All accrued and unpaid dividends up to, but excluding, the Redemption Date
- Dividend Accrual: Dividends stop accruing on December 22, 2025
- Form of Securities: Book-entry via DTC
- Redemption Agent: Computershare Trust Company N.A.
Investors will receive information and transaction confirmations through their respective brokerage firms or custodial institutions once DTC processes the redemption.
About Dairy Farmers of America
Although not included in the original announcement, it is helpful to understand the context of DFA’s role in the U.S. food system. Dairy Farmers of America is a national dairy cooperative owned by thousands of family farmers across the United States. It plays a central role in milk production, processing, supply chain management, and dairy manufacturing. DFA’s operations ensure that family-owned dairy farms have stable market access while supporting consumers with high-quality dairy products.
Through strategic investments, acquisitions, and partnerships, the cooperative has expanded its capabilities across multiple segments of the dairy value chain. Financial decisions such as the redemption of preferred equity securities are integral to maintaining a stable operating environment that benefits both DFA’s member-owners and its broader network of partners and customers.
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