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Patronage Program

$200 Million Going Back to Our Customer-Owners

In the Spring of 2021, we will return $200 million – the largest amount we've ever distributed – to Patronage-eligible customers through our Patronage program.

Farm Credit Mid-America Patronage Program gave back $200 million to its customers in 2020. They have given back a total of $648.5 million to customers in the last five 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 2020. 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 five years, we've distributed a total of $648.5 million to our customers-owners through Patronage.

For more information about the Patronage program, view the guidelines for the 2020 Patronage program (payments received in 2021) or view the guidelines for the 2021 Patronage program (payments received in 2022).


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.

I buy all my hay for my quarter horses with it. That is a large expense for me, and that really helps.
Really helps maintain and pay bills on the farm and help buy cattle. We will always borough from Farm Credit! Thank you so much!!
This is very much appreciated. It has help us through tight spots. If I don't need to use it all I save and pay extra on my loan with what's left. Thanks once again.
Comes at a time of the year where it is a big help.
Thank you Farm Credit Mid-America for truly caring about those who chose to trust you with their home, land and livelihood!
Patronage impacts my operation by helping with spring input costs. Thank you Farm Credit Mid-America!
I use my Patronage to purchase supplies from different businesses throughout my community, impacting local family-owned businesses.
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?

    Eligible patronage recipients are Patrons that have conducted Patronage Business with Farm Credit Mid-America during the year which has positively contributed to the Association’s income. Eligible recipients include:

    • Holders of Common Stock
    • Farm Credit System institutions and other financial institutions
    • Borrowers and lessees

    Patronage Business encompasses all loan and lease transactions done with or for a Patron except: (i) purchase money mortgages and sale contracts, (ii) acquired loan and lease participations and syndications unless the contract with the originating institution specifically provides for the payment of patronage, (iii) loans financed through the Association’s consume products program, and (iv) any loan or lease specified in advance as not eligible for patronage and for which the borrower has expressly waived patronage in advance. Patronage Business shall not include insurance products or related services.

    A Patron will not be eligible for a patronage if any loan or lease to that Patron has been classified as non-accrual, non-performing, or is subject to litigation or formal collection action at the end of the fiscal year, unless those 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 be sent by mail the week of March 22-26, 2021.

  • 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 2022 for the amount of their patronage received in March 2021. 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, 2020. 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 whether to pay Patronage and the portion of capital to disburse if applicable.

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

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

  • Do you have additional questions about patronage?

    Please contact your local office to answer your Patronage questions.