As a customer-owned cooperative, Farm Credit Mid-America understands that a little extra capital can make a big difference in a farmer’s operation. In March, the financial services cooperative that serves farmers and rural residents across Indiana, Ohio, Kentucky and Tennessee continued its Patronage program for the sixth year in a row, returning cash dividends to eligible customer-owners. This year’s Patronage return was $210 million, bringing the total amount distributed over the past six years to $858.5 million.
“What we get excited about is our shared success,” says President and CEO Dan Wagner. “When we’re doing great as a cooperative or when our balance sheet is strong, we get to return money back to our customers and it really provides a value proposition in our structure to our customer-owners that’s really unique in finance.”
The hard work and resilience of Farm Credit Mid-America’s customer-owners contribute to the cooperative’s continued success. The Patronage program directly gives back a portion of what the Association earns to those who deserve it most.
“As we’ve completed our renewals this past year with our customers, their balance sheets continue to look strong, cash positions are strong and so our customers are in really great positions,” says Wagner.
The total amount of Patronage returned to eligible customers is based on their level of transaction with the Association during 2021. Not all customer-owners receive Patronage payments, and it is not a guarantee. Farm Credit Mid-America’s board votes to approve the program annually.
Customers often use the money to pay down loans, buy new equipment, pay for operating costs and a variety of other things. Here’s what they have to say about the program:
- “This check will help with the higher cost of fertilizer and fuel which is one of the major costs of our hay crops, especially this year. Bless and thank you so much.”
- “Spring is a busy and costly time of year, and the timing couldn’t have been better. From fertilizer and property taxes to trying to increase the size of our operation, it was very beneficial. It has been a pleasure working with your folks in Albany, Ohio.”
- “This patronage check helps us, a small farmer, with equipment and farm upgrades that we would not otherwise be able to afford. Thank you so much Farm Credit, we will be loyal customers for life.”
- “Patronage positively impacts our farm operation as we can use the timely funds to pay for planting inputs. It’s very helpful in the spring before our regular farm income starts to flow. It can be a lifesaver.”
- “Every year is different in some ways yet always the same in other ways. The last patronage check was used to upgrade the property, this check will be used to upgrade equipment, a new tractor to be specific.”
Patronage is one benefit of belonging to a cooperative that exists to secure the future of rural communities and agriculture. It is also another indicator that Farm Credit Mid-America is positioned to provide sound credit through good and challenging times to its customers, now and in the future.
For more information about Farm Credit Mid-America’s Patronage program and its eligibility requirements, visit e-farmcredit.com/Patronage
