COVID-19 Update: We're standing beside you through these challenging times. Click here to learn more.

Patronage Program

$186.6 Million Going Back to Our Customer-Owners

In the Spring of 2020, we will return $186.6 million – the largest amount we've ever distributed – to Patronage-eligible customers through our Patronage program.

Farm Credit Mid-America Patronage Program gave back $186.6 million to its customers in 2019. They have given back a total of $448 million to customers in the last four years.

As a farmer-owned cooperative, we know that a little extra capital can make a big difference in your operation – paying for new equipment, initial operating costs for the upcoming season, payroll and more.

The way we see it, the hard work and resilience of our customer-owners contributed to our success in 2019. Patronage allows us to give back a portion of what we earn directly to those who deserve it most.

The Patronage Program is one of the unique benefits of being a Farm Credit Mid-America customer.

Our purpose is to strengthen rural America's farmers and agriculture, and to that end, Patronage is one benefit of belonging to our cooperative. It means that Farm Credit Mid-America is in a strong position to provide sound credit through good and challenging times, now and in the future. In fact, over the last four years, we've distributed a total of $448.6 million to our customers-owners through Patronage.

For more information about the Patronage program, click here to read the guidelines for the Patronage program (PDF).

SHARE YOUR THOUGHTS!

How does the Patronage you receive from Farm Credit Mid-America impact your operation and your community?

Note: all responses will be reviewed by our staff before appearing on this page.

As a former loan officer of the Farm Credit System who had to deal with the farm depression of the 1980's, it is very gratifying to me to see that the system has successfully recovered from those times to the point now where it can issue patronage refunds to it's borrowers! Congratulations.
Really helps to pay bills. I will always borrow money from Farm Credit. Your patronage program is great.
Great timing! So many things to do and buy for a productive 2020! Thank you!
Patronage shows Farm Credit’s dedication to my family farm. We are in tough times and it helps us when they give back. At the bank stockholders are taken care of. At Farm Credit I am one of those stockholders.
Patronage is a product of a well-run farmer-owned cooperative. I appreciate the board's keen attention to being good stewards of member capital.
Comes at a time of the year where it is a big help.
Very grateful
Thank you Farm Credit for truly caring about those who chose to trust you with their home, land and livelihood!!
It’s perfect timing! Good to buy seed, bees, and fuel with!!
This will be an incredible help at a perfect timing.
Thank you Farm Credit Mid-America! Patronage impacts my operation by helping with spring input costs.
I use my Patronage to purchase supplies from different businesses throughout my community, impacting local family-owned businesses.
We will use our Patronage to buy more cattle, allowing us to expand our operation.
Thank you Farm Credit, we are proud to do business with the cooperative.
Thank you Farm Credit Mid America!!!!!!

Frequently Asked Questions

  • What is patronage?

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

  • Who is eligible for Patronage?

    Subject to the following exceptions, eligible Patrons shall include holders of Common Stock, Farm Credit System institutions and other financial institutions, and other borrowers and lessees, with or for whom the Association conducts Patronage Business during the year and who have positively contributed to the Association’s income as reflected on its financial records prepared in accordance with GAAP with respect to such transaction in the amount described below in the Patronage Basis Allocation Methodology section.

    A Patron shall not be eligible for a patronage if any loan or lease to that Patron on the Association’s books has been classified as nonaccrual, non-performing, or is subject to litigation or formal collection action at the end of the fiscal year, unless all such Patron’s loan(s) and lease(s) are current in due payments and not subject to any formal restructuring involving a material compromise at the end of the fiscal year.

  • What is the patronage calculation based on?

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

    Patronage is based on the customer's contribution to the net income of the company, specifically a customer's contribution to net interest income and origination fees in proportion to the association's total net interest income and origination fees.

  • When and how will patronage checks be delivered?

    All patronage checks will arrive by mail the week of March 23-27, 2020.

  • Will interest rates go up to pay patronage?

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

  • Why doesn't Farm Credit Mid-America distribute all of its earning as patronage?

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

  • Is my patronage payment taxable income?

    Patronage is generally taxable income. All customers will receive a 1099-PATR in early 2021 for the amount of their patronage received in March 2020. Please consult your tax advisor.

  • Who will be the payee on the patronage check?

    The Patronage check payee will be the "payor of record" (primary customer) in our loan accounting system as of December 31, 2019. This is the person whose taxpayer identification number appears on any IRS reporting associated with the customer's account.

  • How does paying patronage benefit Farm Credit Mid-America?

    Patronage enhances the relationship that Farm Credit Mid-America has with agriculture 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.

  • In addition to patronage, what are other benefits to membership in this cooperative?

    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.

  • Will I receive patronage in the future?

    Returning Patronage is a decision the Farm Credit Mid-America board considers and makes each year. It's not a guaranteed payment, but rather a return of our earnings that is paid to Patronage-eligible customers of Farm Credit Mid-America, according to board resolution.

    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. The terms of the program and payout are determined on an annual basis. Additionally, customer eligibility requirements must be met each year.

  • I received a patronage check last year but did not receive one this year. Why?

    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, 2018 and 2019 Patronage Programs did not include them. Future Patronage Programs may or may not include certain customers or loan types, just as the potential exists not to have patronage payout at all. The terms of the program and payout are determined on an annual basis. Your loan type or terms may have changed.

12501 Lakefront Place, Louisville, KY 40299
1-800-444-FARM
© 2020 FARM CREDIT MID-AMERICA. ALL RIGHTS RESERVED. Farm Credit Mid-America is an equal opportunity provider.
PRIVACY POLICY  Anonymous Reporting