Patronage Program

Farm Credit Mid-America has re-invested 100% of earnings back into your cooperative to build financial strength to serve rural America and agriculture for the future. Having successfully built that financial strength, the Board of Directors has decided to distribute capital to customers in the form of patronage.

Each year, the Board of Directors evaluates the Association’s net income and determines distribution of a portion of the capital to customers through the patronage program.

For more information on our patronage program, see the FAQ below, the Patronage Program Letter,  or contact your local office.

Frequently Asked Questions

Patronage is the name for the capital that a cooperative returns to its customers.

Eligible customers receive patronage that is proportionate to their transaction level with Farm Credit Mid-America.

2017 Patronage checks will arrive by mail or be hand delivered the week of March 26, 2018.

No. Patronage is not funded by rate increases and rates are not increased to pay patronage. Interest rates change daily and are market driven.

Farm Credit Mid-America continues to offer competitive interest rates. Patronage is the optimal way to align providing value back to customers with maintaining the financial strength of your cooperative.

Capital not distributed as patronage is used to sustain your cooperative, invest for the future and keep your cooperative financially strong for unforeseen circumstances.

Patronage is generally taxable income. All customers will receive a 1099-PATR in early 2019 for the amount of their patronage received in March 2018. Please consult your tax advisor.

Patronage enhances the Farm Credit Mid-America value proposition to ag customers by returning capital directly to them. It also enables the cooperative to more optimally manage capital levels, as payout is determined at year end.

As a cooperative, Farm Credit Mid-America provides knowledge and education to both customers and team members through specialized events, trainings and access to subject matter experts. Customer stockholders can also participate in Board of Director and Nominating Committee Elections annually and can vote on issues influencing the operations of the Association.

Patronage is an annual program. The decision to pay patronage will be reviewed each year by the Board of Directors. The terms of the program and payout are determined on an annual basis. Additionally, customer eligibility requirements must be met each year.

Patronage is an annual program, so there are a couple possible reasons you did not receive a check. The Patronage Program for 2016 included consumer products, while the 2017 Patronage Program excludes them. Future Patronage Programs may or may not include certain customers or loan types, just as the potential exists not to have a patronage payout at all.  The decision to pay patronage is reviewed annually by the Board of Directors. The terms of the program and payout are determined on an annual basis. Your loan type or terms may have changed.