Competitive rates on long-term fixed-rate financing options.
Meet the routine cash flow needs of your business and manage risk.
Quick and competitive financing for life’s needs from equipment to real estate improvement
Acquire flexibility and potential tax benefits.
Financing farm-related services such as custom application.
Integrated financial tools to move your business further.
Financing for purchasing equipment or refinancing equipment loans
Food and fiber debt syndications and investments.
Financing specialized for processors, manufacturers and distributors of food and agricultural goods.
Specialized financing for large-scale beef producers to stay competitive and manage, improve or enlarge their operations.
Financing options for large-scale dairy producers to embrace opportunities and overcome milk price hurdles the market can present.
Specialized financing for large, established poultry and egg producers that takes market swings and regulations into account.
Financing options for large-scale pork producers, integrators and processors to help manage and expand their operations.
Specialized financing for sawmills, wood processing operations and large timberland owners to achieve profitability.
The stories, people and programs that are making an impact in rural communities and agriculture.
Collaborating with businesses and others in the agricultural industry that passionately care about rural America.
Initiatives that contribute to the economic vibrancy of rural communities and agriculture.
Where agriculture meets business and expertise meets Insight.
Meet the people and explore the forces shaping the place you call home.
LOUISVILLE, Ky. (Feb. 28, 2019) – For the third year in a row, Farm Credit Mid-America is returning money to eligible customers as part of its Patronage program. This year, the financial services cooperative will distribute record Patronage – $146 million – to eligible customers.
“With this year’s Patronage, the total returned to our customer/owners since 2016 will be $262 million,” said Bill Johnson, Farm Credit Mid-America president and CEO. “This is an especially gratifying year because of the challenging economy and market uncertainties farmers have and continue to face.”
“This year, Patronage will provide real help during a time of real need.”
Last year, the association shared back $87.9 million, and in 2016, its first year for Patronage, distributed $27.8 million for a three-year average of $87 million. Patronage is not a guarantee – the association’s board annually has to approve the program, and not all customers will receive a check. Of the association’s $23-billion portfolio, $11.4 billion is Patronage eligible.
This third year of the program also shows the power and benefit of belonging to a cooperative, Johnson added.
“Our commitment to sharing profits with our farmers comes from our structure,” said Johnson. “Our farmers are borrowers, but they’re also investor/owners – they have a stake in the association and in our success.”
In addition to Patronage, customer/owners can participate in annual Board of Director and Nominating Committee Elections, and can vote on issues that might influence the operations of the association.
“Our farmers are like family,” Johnson said. “We work hard to do our best for them, to help them make their operations as successful as can be. Few lenders offer this type of advantage.”
Farm Credit Mid-America is a part of the national Farm Credit System, serving farmers and rural residents in Indiana, Ohio, Kentucky and Tennessee. Nationally the system provides more than one-third of the credit needed by those who live and work in rural America. With more than $23 billion in loans to more than 100,000 borrowers, FCMA is a very strong provider of U.S. agricultural credit and thus able to offer customers Patronage.
Association leaders will personally deliver Patronage checks by hand – there are 36,000 total checks and leaders will hand-deliver all that exceed $20,000 – with the remaining arriving by mail the week of March 25-29. The average check amount is about $3,000, and there are 1,000 checks that are greater than $20,000.
The amount each eligible customer will receive is proportionate to the transaction level with FCMA during 2018. Patronage is not funded by rate increases and rates are not increased to pay Patronage. Interest rates change daily and are market driven.
Additionally, Patronage is considered taxable income. For the 2019 Patronage program, FCMA, in January 2020, will send an IRS Form to Patronage-eligible recipients, who are encouraged to speak with their financial advisor.
Patronage is an annual program, and the decision to pay Patronage will continue to be reviewed each year by Farm Credit Mid-America’s Board of Directors. The terms of the program are determined on an annual basis. For more information on the Patronage Program, visit e-farmcredit.com/Patronage.
The Farm Credit Mid-America Board of Directors is pleased to announce the intent to merge Farm Credit Mid-America and Farm Credit Midsouth under the name Farm Credit Mid-America.
The three incumbent directors will continue to provide strategic direction to the Association’s leadership
New position completes new leadership structure at one of the nation’s leading financial services co-ops
Leadership liaison provides accountability, strengthens operations and helps financial services co-op mitigate risk