March 12, 2018

Capital Farm Credit- Where Customers Reap the Benefits.

This month, Capital Farm Credit will return $77.5 million cash to its members in the form of patronage dividends. In addition, we're setting aside $86.3 million in Allocated Equities for future distribution to our members, for a total 2018 patronage declaration of $163.8 million.


Q: What is a patronage dividend?

A: A patronage dividend is a return of a cooperative's earnings back to patrons like you who use the cooperative's services.

Q: What determines how much a borrower receives?

A: A borrower's refund amount is determined by the total earnings generated by the association, and is allocated based upon the interest accrued on his or her loan. Each individual borrower's patronage amount will depend on that borrower's interest rate and loan volume.

Simply put, patronage is based on the amount of business the borrower does with Capital Farm Credit.

Q: How do patronage dividends benefit customers?

A: The patronage refund is a refund of a portion of the interest the member paid, which ultimately lowers the effective rate and reduces their borrowing cost.

Capital Farm Credit charges a market interest rate on loans, but our customers get money back through a patronage refund, which reduces the cost of lending.

2018 Patronage

Over $750 million to borrowers in the last decade

Capital Farm Credit is a cooperative, meaning that you as a borrower are also an owner and share in our profits. Profits are returned to you through our patronage dividend program. In fact, Capital Farm Credit has returned more than $750 million to borrowers over the last decade.

"As a borrower-owned cooperative, our members are also our owners," said Ben Novosad, chief executive officer. "When Capital Farm Credit is successful, our members are successful."We have a long tradition of strong earnings, which adds to the benefit of our members. As our earnings are returned through our patronage dividend program, the association lowers the cost of doing business for our members, and in turn helps to strengthen the agricultural economy and rural communities we serve.

"We're proud to support rural Texas communities and agriculture with reliable, consistent credit and financial services by providing farmers and ranchers with the capital they need to make their businesses successful," he added. "We're in this together with our members, and together we're better."